PT Bank Danamon Indonesia Tbk

Analyst Briefing - Three Months FY 2022 Financial Results

Jakarta, 27 April 2022
 Table of Content

MUFG Collaboration & Digital Highlights Update

1Q22 Financial Highlights

1
 MUFG Collaboration and Digital Banking Highlights
MUFG
MUFG
Collaboration:
Collaboration:
Realizing
GrowingSynergy
and Diversified
Loan and CASA
Synergies
Growth
Number of Deals* Synergy Loan Balance (Rp bn) Synergy CASA Balance (Rp bn) Unique Loan Deals in 1Q22
+165% +161% +240% Mortgage Partnership with
11,391 4,760 Japanese Developers
251

7,057
152
5,069 1,981
81 973
Loan Loan to MUFG Loan through
Syndication Affiliates Fintech

1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 1Q20 1Q21 1Q22

*) Accumulated number of deals; legends by products:
Financial Supply Chain Sharia Finance Employee Benefit Program EB Bilateral Loan CASA, etc.

Digital Banking: Capabilities & Partnership Expansion

Traction in Digital Transaction Highlights in 1Q22

Transaction (%) TD Online (%) Bonds Transaction (%) Enhance Capabilities
3M-2022 37%
Branch (Teller) 52%
7.4% 45% D-Wallet D-Save Online
28%
ATM, CDM, USSD for Android Onboarding
11.1% 20%
Expand Partnerships
Call Center
0.3%
Mobile & Internet
0%
Banking
81.2%
1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 Online Onboarding API & Direct Debit
2
 Danamon, Adira Finance and MUFG Collaboration in IIMS Hybrid 2022
• Danamon, as one Group together with Adira Finance and supported by MUFG, denotes the commitment to support
the recovery and long-term growth of sustainable automotive ecosystem in Indonesia.
• Automotive enthusiasts and industry players responded positively to the annual Indonesia International Motor Show
(IIMS) Hybrid 2022, which was held from 31 March 2022 to 10 April 2022.

1.1 Million Visitors

(35% Offline Visitors)

Rp 300Bn Auto Loan Applications

Rp 100Bn Mortgage Applications

3,000+ Applications of Banking Products

(including Saving Accounts & Credit Cards)

28Bn+ AVE* in Media Coverage

*) Advertising Value Equivalent

3
 Table of Content

MUFG Collaboration & Digital Highlights Update

1Q22 Financial Highlights

4
 Profit growth of 65% and record high CASA ratio

• EB portfolio grew 10% YoY and reached Rp61tn, supported by collaboration with MUFG and
Prudent Loan focus on blue chip companies and SOE.
Selection • Despite a spike in omicron cases and social restriction earlier this year, ADMF’s 1Q22 new
financing increased by 33% compared to the same period last year.

Granular • The Bank focuses on granular funding, reflected by CASA growth of 12% YoY.
Funding
Growth • CASA ratio reached 60.5% in 1Q22 from 54.7% in 1Q21.

• NPL coverage improved from 177% in 1Q21 to 209% in 1Q22.

Asset
• NPL% improved by 50 bps YoY to 2.8% in 1Q22.
Quality
• LAR% (include COVID restructure still under forbearance) improved 60bps YoY to 15.4%.

• NIM increased by 60 bps YoY with stable quarterly trend, while risk adjusted NIM improved
170bps YoY.
Profitability • Operating profit grew 49% YoY.
• NPAT increased by 65% YoY to reach Rp 860 billion in 1Q22.

5
 1Q-2022 Balance Sheet Highlights

In Rp billion 1Q21 1Q22 YoY 2Q21 3Q21 4Q21 1Q22 QoQ

Total Assets 193,993 195,992 1% 193,751 188,280 192,240 195,992 2%

Total Loan Portfolio and Trade
132,407 132,476 - 131,434 129,511 130,502 132,476 2%
Finance1)
Government Bonds 30,510 22,572 -26% 34,877 31,078 30,338 22,572 -26%

Total Funding 135,852 135,612 - 134,557 128,869 134,318 135,612 1%

CASA 66,556 74,859 12% 68,132 67,332 72,870 74,859 3%

Time deposits 55,080 48,840 -11% 52,874 49,678 50,422 48,840 -3%

Borrowings and LT. Funding 14,216 11,913 -16% 13,551 11,859 11,026 11,913 8%

Equity 43,481 44,623 3% 43,780 44,260 44,539 44,623 -

1) Trade Finance includes marketable securities.

6
 1Q-2022 Income Statement

In Rp billion 1Q21 1Q22 YoY 2Q21 3Q21 4Q21 1Q22 QoQ

Net Interest Income 3,316 3,468 5% 3,500 3,416 3,473 3,468 0%

Non Interest Income 659 671 2% 691 604 1,205 671 -44%

Operating Income 3,975 4,139 4% 4,191 4,020 4,678 4,139 -12%

Operating Expenses (2,051) (2,204) 7% (2,149) (2,166) (2,233) (2,204) -1%

PPOP 1,924 1,935 1% 2,042 1,854 2,445 1,935 -21%

Cost of Credit (1,158) (792) -32% (1,371) (1,143) (2,027) (792) -61%

Operating Profit 766 1,143 49% 670 711 418 1,143 173%

NPAT 522 860 65% 476 411 164 860 424%

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 1Q-2022 Key Financial Ratios

In % 1Q21 1Q22 YoY 2Q21 3Q21 4Q21 1Q22 QoQ

NIM 7.3 7.9 0.6 7.8 7.8 7.9 7.9 0.0

CoC 3.6 2.5 -1.1 4.3 3.6 6.3 2.5 -3.8

Risk-adjusted NIM 3.7 5.4 1.7 3.5 4.2 1.6 5.4 3.8

Cost to Income 51.6 53.2 1.6 51.3 53.9 47.7 53.2 5.5

CASA Ratio 54.7 60.5 5.8 56.3 57.6 59.1 60.5 1.4

RIM 86.6 86.2 -0.4 86.7 89.1 86.0 86.2 0.2

NPL Gross 3.3 2.8 -0.5 3.0 3.0 2.7 2.8 0.0

Loan Loss Coverage (LLC) 177.0 209.4 32.4 182.9 174.9 225.6 209.4 -16.2

Loan at Risk Coverage excl. COVID1) 41.6 47.0 5.4 38.5 40.9 50.3 47.0 -3.3

Loan at Risk Coverage incl. COVID2) 26.4 37.8 11.4 27.3 28.3 38.3 37.8 -0.5

ROAA 1.1 1.8 0.7 1.0 0.9 0.3 1.8 1.4

ROAE 5.5 8.8 3.3 5.0 4.2 1.7 8.8 7.1

CAR – Consolidated 25.7 26.0 0.3 26.1 26.4 26.7 26.0 -0.7
1) NPL + SM + Restructured Loan Coll. 1.
2) NPL + SM + Restructured Loan Coll. 1 including COVID Restructured Loans (Under Forbearance).
8
 Granular funding through digital and institutional approach

RIM & LDR (%) LCR & NSFR (%)

LCR NSFR
RIM LDR
89.1 195.7 199.9 197.7
189.7 187.0
86.6 86.7 86.0 86.2
87.8
140.8 139.7 140.6 140.7 139.4
85.3 85.5 84.6 84.7

1Q21 2Q21 3Q21 4Q21 1Q22

1Q21 2Q21 3Q21 4Q21 1Q22

CASA , TD & CASA Ratio – Improved CASA Ratio Strong Focus on Granular Funding* (Rp tn)

CASA (Rp tn) TD (Rp tn) CA SA TD

CASA Ratio (%)

+12% -11% +5.8 72.7 76.8 77.4

73.7 72.6
11% 9% 9% 9% 9%
73 75 55 59.1 60.5
67 50 49 54.7

55% 57% 58% 59% 61%

34% 34% 33% 31% 30%

1Q21 4Q21 1Q22 1Q21 2Q21 3Q21 4Q21 1Q22

*CA, SA and regular TD IDR from Consumer and SME banking

9
 Strong capital as foundation for growth

Capital Adequacy Ratio (%) Market and Operational Risk Charges (%)

26.2 26.5 26.6 26.4 25.7 % 1Q21 2Q21 3Q21 4Q21 1Q22
Bank Only CAR w/ Credit
33.4 34.0 34.3 34.8 33.5
Risk
25.7 26.1 26.4 26.7 26.0
0.8 0.9 0.8 0.9 0.8 Market Risk
-0.3 -0.4 -0.3 -0.3 -0.3
Tier 2-Consol Charge
Tier 1-Consol
Operational
24.9 25.2 25.6 25.9 25.2 -7.4 -7.5 -7.6 -7.8 -7.2
Risk Charge

CAR
25.7 26.1 26.4 26.7 26.0
1Q21 2Q21 3Q21 4Q21 1Q22 Consolidated

Tier 1 and Tier 2 Consolidated Capital

Tier 1-Bank Only Tier 1-Consol
Tier 2-Bank Only Tier 2-Consol • Consolidated Capital Adequacy Ratio (CAR) was
26.0%, far above the minimum requirement.
39.5 39.9 40.4 40.3 40.2
32.3 1.3 32.7 1.3 32.9 1.3 32.3 1.3 32.5 1.3
1.2 1.2 1.2 1.2
• Almost 100% of the capital derived was from Tier
1.2
1 Capital.
38.2 38.6 39.1 39.0 38.9
31.1 31.5 31.7 31.0 31.3

Bank Consol Bank Consol Bank Consol Bank Consol Bank Consol
Only Only Only Only Only

1Q21 2Q21 3Q21 4Q21 1Q22

10
 Second consecutive quarterly loan growth indicating pick up in demand

Composition of Loan Portfolio & Trade Finance1) (Rp tn) Growth of Loan Portfolio & Trade Finance1) (Rp bn)

Strategy execution and collaboration are enhanced by restructuring

132.4 131.4 132.5 the four growth engines into: Group-wide Wholesale Business and
129.5 130.5
Group-wide Consumer Business.

Rp bn 1Q21 1Q22 YoY QoQ

42% 43% 46%
44% 45%  Enterprise Banking2) & FI 55,167 60,530 10% 4%

Wholesale
Business
 SME 23,150 19,877 -14% -4%

 Consumer 3) 10,997 10,800 -2% 2%

Consumer
Business
17% 17% 16% 16% 15%  Adira Finance 41,919 40,762 -3% 1%

8% 8% 8%
8% 8%  Other Loans4) 1,174 507 -57% -14%

Total 132,407 132,476 - 2%

32% 31% 31% 31% 31%
1) Trade finance includes marketable 3) Consumer: Mortgage, Unsecured
securities. Personal Loan, Credit Card, and Others.
2) Enterprise Banking: Commercial and 4) Other Loans: ex-BNP portfolio+Micro
Corporate.
1% 1% 1% 0% 0%
1Q21 2Q21 3Q21 4Q21 1Q22

11
 Loans composition remained stable and dominated by working capital loans

Loans by Sector (% of total loans) Loans by Purpose

1Q21 1Q22

27.4

24.2 22.3%

23.6%
20.9
19.8 19.6
18.4 18.4 18.9
Outer chart: 1Q22
Inner chart: 1Q21
63.1%
14.4%
11.4
10.9 13.3% 63.3%

5.3
4.8

Trading Household Manufacturing Financial Agriculture, Others Working Capital Investment Consumer
Intermediaries Forestry &
Fisheries
*)Note: Bank Only

12
 ADMF regaining market share and growth trajectory

ADMF units New Financing vs. Industry ADMF Loan Disbursement Amount (in Rp bn)
(% YoY growth based on cumulative YTD)

2W 4W Others
Industry 2W
38.1
ADMF 2W 29.9 +33%
16.2 7,874
34.3 7,166
6,404 6,236
5,407 40%
-17.7 13.7 38%
-23.6 5.1 43% 42%
44%
-43.5 42% 41%
-54.6 38% 39%
34%
-40.1 18% 21%
-46.7 21% 19% 19%

FY20 2M21 1Q21 1H21 FY21 2M22 1Q21 2Q21 3Q21 4Q21 1Q22

ADMF Outstanding Loans

Industry 4W
ADMF 4W 66.7 61.9
50.8 Rp bn 1Q21 1Q22 YoY 4Q21 QoQ
61.3 56.1 2W auto loans 18,284 16,697 -9% 16,782 -1%
38.1
-21.1 4W auto loans 23,419 23,844 2% 23,434 2%
-36.2
-48.4 White goods and
-27.3 216 221 3% 214 4%
-39.9 others
-51.4
FY20 2M21 1Q21 1H21 FY21 2M22 Total Loans 41,919 40,762 -3% 40,429 1%

Note: Industry data from AISI and Gaikindo.

13
 Stable Non-Interest Income despite a spike in omicron cases in 1Q22

Non-Interest Income (Rp bn) Revenue Composition

1Q21 1Q22 51.6 51.3 53.9 47.7 53.2
+2%

659 670
4,678
3,975 4,191 4,020 4,139

74%
304 297 83% 84% 85% 84%
+14%
209 206
146 167
26%
17% 16% 15% 16%
1Q21 2Q21 3Q21 4Q21 1Q22
Credit Rel. Non Credit Rel. Treasury Total Cost to income ratio
Fee Net Interest Income Non-Interest Income

Credit Related Fee Non- Credit Related Fee

• Danamon credit related fee trend in
1Q21 1Q22 1Q21 1Q22
line with disbursement growth.
204
179 125 152 150
93
57 56

Bancassurance Cash Management

Bank ADMF and Wealth Management. & Others

14
 High NPL Coverage coupled by improving asset quality
10.1 10.6 9.5 9.1 9.1
NPL and SM %
of Total Loans SM%
3.3
3.0 3.0 2.8 NPL%
2.7

16,680 17,009
15,415 14,560 14,791
4,089 3,706
3,736 3,364 3,459
NPL and SM
amount 13,303
12,591 11,679 11,196 11,332 NPL
(Rp bn)
SM

1Q21 2Q21 3Q21 4Q21 1Q22

225.6 209.4
177.0 182.9 174.9
NPL Coverage
Ratio (%) NPL Coverage
4,195
3,783 3,799
16% 3,396 3,491
16% 15%
NPL amount 20% 25% EB & FI
38%
(Rp bn) 37% 40% SME
42% 40%
and 9% 10% 9%
Consumer
Composition 10% 10% ADMF
36% 36% 34%
(% of Total NPL) 27% 24% Others
1% 1% 1% 1% 1%

1Q21 2Q21 3Q21 4Q21 1Q22

15
 COVID Restructured Loans and Loan at Risk continued to trend down
3.6 3.9 3.8 4.4
2.5
YTD CoC as % of avg loan
Cost of Credit
2,027
(% of Avg Loans
1,371
and Rp bn) 1,158 1,143 68% BDI ADMF
41% 50% 792
44%
30%
59% 50% 56% 32% 70%
1Q21 2Q21 3Q21 4Q21 1Q22

21.9% -2.8
19.9% 18.8% -0.6
16.0% 15.4% LAR as % of Total Loan
Loan at Risk COVID Restru. Col.1
(% of Total Loans (Under Forbearance)
and Rp tn) 27.4 24.9 Restru. Col. 1
23.1 19.8 19.2
10.0 7.3 7.2 SM
0.7 0.6 0.5 0.5 4.7 0.6 3.8
12.6 13.3 11.7 11.2 11.3 NPL
4.1 3.7 3.7 3.4 3.5
1Q21 2Q21 3Q21 4Q21 1Q22

10,957

COVID related -32%

Restructured 7,685 7,477
-18% BDI
Loans – Under
9,913 5,066 ADMF
Forbearance 4,179
(Rp bn) 7,483 7,405
5,032 4,155
1,044 202 72 34 24
1Q21 2Q21 3Q21 4Q21 1Q22
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 THANK YOU
Investor Relations
PT Bank Danamon Indonesia, Tbk
Menara Bank Danamon, 16th Floor
Jl. H.R. Rasuna Said Kav. C-10
Setiabudi - Kuningan, Jakarta Selatan 12940
Phone: +62 21 8064 5000
Email: [email protected]