Danamon books Rp 1.53 trillion in net profit

JAKARTA: Bank Danamon booked a net profit of Rp 1.53 trillion (US$165.24 million) in 2009, the same as the declared profit for the previous year, while the bank's Capital Adequacy Ratio (CAR) reached 20.7 percent, well above the minimum requirement of 8 percent.

The bank said in a statement that total loans declined by 5.4 percent to Rp 63.28 trillion as of December, 2009 from Rp 66.9 trillion in the same period, the previous year. It said that total loans in 2009 were mainly supported by the mass market segment which expanded to Rp 34.08 trillion of the bank's total loans.

Mass market loans, which include micro loans channeled through Danamon Simpan Pinjam (DSP) and auto loans provided by automotive financing subsidiary PT Adira Dinamika Multi Finance, grew 12 percent and 13 percent year-on-year, respectively.

"The bank's equity increased 49 percent in 2009, placing Danamon's CAR close to 21 percent," the bank's director and chief financial officer Vera Eva Lim said in the statement

For the full year of 2009, the bank's net operating income grew by 19 percent to Rp 5.65 trillion, while Net Interest Margin (NIM) increased to 12 percent, Vera said. - JP