Bank Danamon Aims for 15% Growth in Asset Under Management by Year-End 2024

JAKARTA, RAKYAT NEWS – PT Bank Danamon Indonesia Tbk (Bank Danamon) is setting an ambitious goal to achieve a 15% increase in its Assets Under Management (AUM) by the end of 2024.

Ivan Jaya, Head of Consumer Funding & Wealth Business at Bank Danamon, revealed the target during the Danamon Journalist Class event in Jakarta on August 14, 2024. Jaya noted that the wealth management segment has already seen a 10% year-on-year increase, largely driven by bond investments.

“The growth in AUM, including mutual funds and bonds, is primarily supported by our bond investments,” Jaya explained.

He acknowledged that mutual funds faced pressure in the second quarter of 2024 due to factors such as disappointing earnings and a weakening rupiah.

However, recent economic indicators suggest improvement. Jaya pointed out that the Jakarta Composite Index (IHSG) recently reached 7,400, foreign capital inflows have resumed, and the rupiah has strengthened to around Rp15,750 per US dollar.

He anticipates the exchange rate to remain within the range of Rp15,800 to Rp16,000 by year-end.

Bank Danamon reported a net profit after tax (NPAT) of Rp1.5 trillion for the first half of 2024. This performance was driven by an increase in operational revenue to Rp9.4 trillion and a pre-provision operating profit (PPOP) of Rp4.3 trillion, according to Finance Director Muljono Tjandra.

Muljono noted that operational revenue growth was bolstered by increased net interest income and fee-based income, while PPOP benefited from strong operational performance and sustained investment in business development.

The bank also reported a double-digit growth in credit and third-party funds (DPK). Total credit, including trade finance, grew 14% year-on-year to Rp183.9 trillion, while DPK increased 15% year-on-year to Rp146.1 trillion, supported by a 10% rise in granular funding in the first half of 2024.