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Danamon pays Rp 718 billion in dividends
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A Bank Danamon teller serves a customer in Jakarta recently. The Temasek-controlled lender has announced Rp 717.99 billion of dividends, equal to 30 percent of the company’s net profit last year. (Kompas/Heri Sri Kumoro)
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emasek-owned Bank Danamon Indonesia Tbk has announced it will pay Rp 717.99 billion of dividends, or Rp 74.9 per share. The figure equals 30 percent of the company’s net profit last year, totaling Rp 2.5 trillion.
Bank Danamon president director Sng Seow Wah explained that the company had committed to distributing the dividends despite the lowering profit. The lender’s net income declined 7.97 percent last year, compared to that in 2014 worth Rp 2.76 trillion.
The bank has launched an efficiency program and gradually cut staff numbers over the last three years. From 2013 to 2015 Danamon saw 17,503 job cuts. The biggest cut was in 2015 of 10,392 staff.
“Danamon continues to strengthen its franchise services and human capital in order to remain one of the key players in the SME [small and medium enterprises], commercial, consumer and mass banking consumer segments,” he said after an annual shareholders meeting to agree on the dividends, held on Wednesday in Jakarta.
The meeting also approved the resignation of Fransiska Oei from her position as director, and hired two new directors – Adnan Qayum Khan, a risk expert from the Royal Bank of Scotland, and Heriyanto Agung Putra, a former human capital and corporate affairs director at Garuda Indonesia.
In 2015 the bank recorded a worsening quality of credit that slashed its net interest margin (NIM) to 8.2 percent, a new record low after a 8.4 percent margin in 2014. Prior to that, the bank’s NIM had never been below 9 percent.
Danamon is controlled by Temasek through two subsidiaries, Asia Financial (Indonesia) Pte, Ltd., which owns 67.37 percent of shares, and JPMCB-Franklin Templeton Investment Funds, which holds 6.81 percent.
In total, the Singaporean company holds 74.18 percent ownership, with the remaining 25.82 percent owned by the public. (ags)
