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BDMN: 4Q23 Earnings Surged +21% YoY

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Algo Research Team

Company | Feb 21, 2024 | Views: 812

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Key Summary:

  • Loan & Financing grew +19%; Highest among peers
  • Loan growth driven by Consumer (+41%), Adira (+25%) and Corporate (+15%)
  • Management targets double-digit growth next 3 years

Bank Danamon recently published its FY23 results which showed sequential improvement. 4Q23 earnings grew by +21% YoY from decent PPOP (+9%) and flat provision charges (+0.4%), bringing the total FY23 net profit up +6% YoY.


On a full-year basis, the surge in loan growth came above expectation, accelerating +19% YoY (ex ADMF: +17%) driven by corporate and consumer segments. This suggests that the synergy with MUFG to capture Japanese loan ecosystem and M&A strategy (i.e. Standard Chartered acquisition) in high-yield segments are accretive.

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