Bank Danamon Still Studying Entry into Paylater Business
JAKARTA - PT Bank Danamon Indonesia Tbk (BDMN) stated that it opened the opportunity to enter the paylater business, as an effort to strengthen the penetration of the retail segment.
Until now, the company is still in the stage of conducting a business model study, as well as the most appropriate distribution scheme.
“Interest is certainly always there because paylater is part of consumer credit. But until now we are still looking for the right form for this business,” said Deputy President Director of Danamon Honggo Widjojo Kangmasto at the Virtual Press Conference on the Performance of FY 2025 in Jakarta, quoted by Antara, Friday, 20 February.
Honggo said that the paylater service is essentially part of a potential consumer loan. However, he chose to be cautious before deciding to expand into that business line.
He explained that one of the options considered by the company was distribution through an entity in the group, namely Home Credit Indonesia.
The company also opens the possibility of collaboration with digital ecosystems that are connected to the strategic network of the parent company.
In addition, the company is considering the opportunity for synergy with the investment ecosystem owned by the MUFG Group in a number of startups in Indonesia, which can accelerate market penetration while minimising risks.
However, the company emphasised that the final decision regarding the expansion of paylater is still pending the results of a business feasibility study, including potential credit risks, readiness of digital infrastructure, and regulatory dynamics.
“In the future, the bank will continue to focus on strengthening its position as a conventional bank with digital capabilities, while continuing to explore new business opportunities that can expand the retail customer base without neglecting the principle of prudence,” said Honggo.
Throughout 2025, Bank Danamon recorded consolidated net profit of IDR 4 trillion, or grew 14 per cent year-on-year compared to the same period last year.
In terms of intermediation, the company recorded a total consolidated credit and trade finance of IDR 212.7 trillion as of 31 December 2025, or grew 9 per cent year-on-year. Credit growth occurred across all business lines, including enterprise banking, financial institutions, consumer banking, and financing through Adira Finance.
The company’s third-party funds (DPK) grew 16 per cent year-on-year to IDR 176.9 trillion, supported by an increase in current and savings account deposits (CASA).
Meanwhile, the quality of the company’s assets showed improvement, reflected in the ratio of non-performing loans (NPL) which fell to 1.7 per cent, or 20 basis points better than the previous year.
Meanwhile, the Loan at Risk Ratio (LAR) also improved to 8.3 per cent, or down 230 basis points year-on-year.