Danamon says third-party fund growth remains on track until end of 2026

PT Bank Danamon Indonesia Tbk has stated that its third-party fund (DPK) growth remains on track until the end of 2026, with strengthening liquidity as a primary focus amid competition for deposits. Chief Strategy Officer Reza Iskandar Sardjono said the bank will continue to maintain DPK growth because adequate liquidity is a key factor in ensuring the bank’s health. “I think (DPK growth) is still on track. We will continue to maintain it because it is one of the keys to a bank’s health,” Reza said after a media luncheon in Jakarta on Tuesday. The bank’s funding strategy involves strengthening its business ecosystem, including the automotive, fast-moving consumer goods (FMCG), education, Japanese property, and hajj and umrah sectors. Reza explained that the financial supply chain approach allows the flow of funds from producers, distributors, sub-distributors, to consumers to occur within the Danamon customer ecosystem, thereby supporting sustainable DPK growth. In addition, the company continues to enhance its digital capabilities by adding service features regularly to increase customer transaction activity while maintaining competitiveness. Based on first-quarter 2026 performance, Danamon’s total credit and trade finance grew approximately 9% year-on-year to Rp216.2 trillion, while current accounts, savings, and deposits rose around 16% to Rp176.1 trillion. Consumer Funding and Wealth Business Head Ivan Jaya said the bank is continuously balancing short-term and long-term funding needs amid competition for deposits. He noted that interest rate adjustments are made selectively, considering customer needs, market conditions, and the policy direction of the government and regulators. “We do not simply raise all interest rates, both lending and deposit rates,” Ivan said. He added that the main strategy is not only through pricing adjustments but also by increasing transaction activity so that low-cost funds grow larger and the cost of funds is maintained. According to Ivan, increased transactions enable more optimal accumulation of low-cost funds, giving the bank room to offer more competitive lending rates to the public. He added that the credit growth target until the end of 2026 remains in the low double-digit range, around 10% to 15%, while DPK growth is expected to move in line with financing expansion. “Credit growth in the low double-digit range, between 10% and 15%, has always been our target. Funding growth will follow,” he said. On an industry level, the Financial Services Authority (OJK) recorded that banking DPK in May 2026 grew 13.49% year-on-year to Rp10,294 trillion, supported by increases in current accounts, deposits, and savings. Banking liquidity also remained adequate, reflected in a liquid assets to non-core deposits ratio of 108.20% and a liquid assets to DPK ratio of 24.74%, well above the respective thresholds of 50% and 10%.