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Private lender Danamon posts 12% increase in net profit
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A teller serves a customer at a Bank Danamon branch in Jakarta. (kompas.com/File)
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ublicly-listed lender Danamon Indonesia reported on Thursday that the company’s net profit increased by 12 percent to Rp 2.7 trillion (US$202 million) last year.
The bank said it had focused on several initiatives in 2016 that had brought positive results in terms of productivity and financial performance.
“The initiatives include restructuring of sales and distribution network, improvement of the bank’s digital channels and service quality,” the firm said in its information disclosure submitted to the Indonesia Stock Exchange.
(Read also: Danamon ready to facilitate tax amnesty program)
Due to competition, the lender struggled with slow loan demand in 2016, as its micro loan segment declined by 30 percent to Rp 10.2 trillion.
However, Danamon recorded double digit growth in other segments such as small and medium enterprises, the wholesale segment and consumer mortgages. The portfolio of the SME banking segment grew by 10 percent to Rp 24.7 trillion, wholesale by 11 percent to 37.4 trillion and consumer mortgage by 21 percent to Rp 4.4 trillion.
The lender’s fee-based income increased by 7 percent to 2 trillion. The growth was supported by its subsidiary Adira insurance.
Last year, Danamon’s total non-performing loans decreased by 4 percent to Rp 3.7 trillion. (bbn)
