Annual Report Danamon 2019.pdf - Annual Report 2019 Annual Report 2019 REACHING NEW HEIGHTS WITH L O C A L A N D G L O B A L C A PA B I L I T I E S

Annual Report Danamon 2019.pdf - Annual Report 2019 Annual...

This preview shows page 1 out of 648 pages.

You've reached the end of your free preview.

Want to read all 648 pages?

Unformatted text preview: Annual Report 2019 Annual Report 2019 REACHING NEW HEIGHTS WITH L O C A L A N D G L O B A L C A PA B I L I T I E S Annual Report 2019 MENARA BANK DANAMON Jl. HR. Rasuna Said Blok C No. 10 Karet - Setiabudi Jakarta - Indonesia 12920 Reaching New Heights with Local and Global Capabilities Reaching New Heights with Local and Global Capabilities Main Highlights Management Report Company Profile Management Discussion and Analysis Operational Review Our achievements in 2019 are just the beginning. Danamon’s unique combination of local and global capabilities will help the Bank to achieve sustainable growth and continue reaching new heights in future years. Corporate Data Through these new set of capabilities, Danamon is well equipped to serve holistically the financial needs of customers and their business ecosystems. Our aim is to understand customer needs and provide integrated one-stop solution services and quality banking products across business segments. Enhancing digital capabilities is one of the key drivers to serve customer well. To that end, Danamon will continue to improve its D-Bank mobile platform, digitize business processes and foster partnerships with digital and fin-tech companies. Corporate Social Responsibility PT Bank Danamon Indonesia Tbk (“Danamon” or “The Bank”) reached an important milestone in 2019 as Mitsubishi UFJ Financial Group (“MUFG”) became the sole controlling shareholder of Danamon. Now Danamon has transformed into a unique hybrid bank with strong local network and knowledge, supported by MUFG’s global network and international and diverse capabilities. Good Corporate Governance Reaching New Heights with Local and Global Capabilities 1 Annual Report 2019 PT Bank Danamon Indonesia Tbk Table of Content Management Discussion and Analysis Operational Review Good Corporate Governance Corporate Social Responsibility Corporate Data 01 81 Majority and Controlling Shareholders Main Highlights 6 2019 Financial Highlights Company Profile 82 Share Listing Chronology 83 Other Securities Listing Chronology 10 Sharia Highlights 2019 83 Corporate Action 12 84 Subsidiaries & Affiliated Companies Share and Bond Highlights 14 Securities Ratings 85 Capital Markets Supporting Institutions & Professionals 15 Information on Bonds/Sukuk 16 2019 Events Highlights 86 Awards 02 04 Management Report Management Discussion & Analysis 22 Report from the Board of Commissioners 28 Report from the Board of Directors 92 Macro Economy 36 Report from Syariah Supervisory Board 94 Business Segment Review 40 Overview of Plans, Policies and Strategies 95 Enterprise Banking 42 96 Treasury and Capital Market 97 Transaction Banking (Cash Management, Trade Finance & Financial Supply Chain) 98 Small Medium Enterprise (SME) Banking 99 Consumer Banking Responsibility for Annual Reporting 03 Company Profile 100 Marketing Aspect 101 Sharia Banking 48 Corporate Identity 103 Business Review of Subsidiary Company-ADMF 50 Brief History 106 Financial Review 46 Danamon at a Glance 52 Organization Structure 56 Vision & Mission 58 Operational Areas 60 Board of Commissioners’ Profile 05 Operational Review 66 Board of Directors’ Profile 122 Risk Management 72 222 Human Capital Board of Senior Executive Officers Profile 75 Syariah Supervisory Board Profile 232 Information Technology 77 Independent Parties Profile 234 Operations 78 Number of Employees Main Highlights Management Report 81 About MUFG 2 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities 07 Good Corporate Governance Corporate Social Responsibility 238 Corporate Governance 400 Corporate Social Responsibility Main Highlights 06 240 Corporate Governance Implementation Roadmap of Danamon 244 Focus and Achievement of Danamon’s 245 Assessment of the Implementation of Danamon’s Corporate Governance In 2019 08 Corporate Data 404 Product & Service 250 General Meeting of Shareholders (GMS) 412 Senior Executive Officers & Executive Officers 260 Board of Commissioners 425 Branches Office Management Report Corporate Governance Implementation In 2019 273 Committees under the Board of Commissioners 298 Board of Directors Company Profile 315 Committees under the Board of Directors 322 Corporate Secretary 329 Compliance Function Management Discussion and Analysis 336 Internal Audit Working Unit (SKAI) 340 Company’s Accountant/External Auditor 342 Risk Management 351 Remuneration Policy 356 Bank’s Strategic Plan 358 Access to Company Information 362 Corporate Culture Operational Review 364 Whistleblowing System 366 The Implementation of Corporate Governance Guidelines in Public Companies 376 Integrated Corporate Governance 372 Application and Implementation Report Good Corporate Governance 385 Sharia Corporate Governance Corporate Social Responsibility Corporate Data 3 Annual Report 2019 PT Bank Danamon Indonesia Tbk 4 PT Bank Danamon Indonesia Tbk Annual Report 2019 Main Highlights Management Report Company Profile Management Discussion and Analysis Operational Review Good Corporate Governance Corporate Social Responsibility Corporate Data Reaching New Heights with Local and Global Capabilities Management Report Company Profile Management Discussion and Analysis Operational Review Good Corporate Governance Corporate Social Responsibility Corporate Data PT Bank Danamon Indonesia Tbk Annual Report 2019 Main Highlights Main Highlights 5 Main Highlights Management Report Company Profile Management Discussion and Analysis Operational Review Good Corporate Governance Corporate Social Responsibility Corporate Data 2019 Financial Highlights New Height in NPAT Rp4.07 TRILLION Net profit after taxation increased by 3.9% to Rp4.07 trillion from Rp3.92 trillion last year. Healthy Capital 24.2 % CAR remains healthy. Consolidated CAR increased to 24.2% Improvement in Low Cost Funding CASA improved by 8.6%. 8.6 % CASA ratio improved to 49.7% from 47.1% last year 49.7 % 6 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities Main Highlights Management Report Prudent Lending Growth Management Discussion and Analysis 6.6 % Company Profile Loan growth excluding micro grew 6.6% compared to previous year Operational Review Consumer mortgage 6.0 % Enterprise Banking & Financial Institution Corporate Social Responsibility Adira Finance 16.3 % Good Corporate Governance 6.7 % Corporate Data 7 Annual Report 2019 PT Bank Danamon Indonesia Tbk Corporate Social Responsibility Corporate Data Consolidated Statement of Financial Position Assets Loans-gross a) Good Corporate Governance 178,257 141,460 134,519 124,766 4,182 3,656 3,412 9,433 9,191 16,101 Government Bonds 14,227 10,973 10,974 116 127 123 114,275 110,848 106,531 Investment in shares-net Deposits from customers and others bank Total Funding b) c) Total Liabilities Equity and Non controlling interest Number of Shares Issues and Fully Paid (in Unit) Net Interest Income 136,140 132,026 124,611 148,117 144,822 139,085 45,417 41,940 39,172 9,773,552,870 9,584,643,365 9,584,643,365 2018 2017* 2019 14,579 Other Operating Income Other Operating Expense 14,241 13,980 3,788 3,696 3,688 (15,093) (12,779) (12,557) Operating Income 3,274 5,158 5,111 Non Operating Income/(Expense) - Net 2,214 (232) (223) Income Tax Expenses Net Income from Continuing Operation 5,488 4,926 4,880 (1,619) (1,354) (1,494) 3,869 3,571 3,394 372 536 434 4,241 4,107 3,828 Net Income from Disposal Group Classified as Held-for-Sale Income After Income Tax Expenses Net Income Attributable to Non-Controlling Interest Management Discussion and Analysis 2017 186,762 Marketable Securities -gross Income Before Tax Net Income Attibutable to Equity Holders of the Parent Entity Basic Earnings Per Share 167 185 146 4,074 3,922 3,682 416.78 409.21 384.11 4,175 3,939 3,573 155 188 136 Comprehensive income attributable to equity holders of the parent entity Comprehensive income attributable to non controlling interest Other Comprehensive Income Actuarial (loss)/gain on post employment benefit 2019 2018 2017* (173) 410 (224) 43 (102) 56 1. Gain/(Loss) in current year 425 (276) 210 2. Amount transferred to profit or loss in respect of fair value change (26) (48) (109) (123) (26) (44) (57) 62 (8) 4,330 4,127 3,709 Income tax related to other comprehensive income Company Profile 2018 193,534 Non Performing Loan Consolidated Profit and Loss Operational Review 2019 Foreign Exchange Difference from Translation of Financial Statement in Foreign Currency Management Report Available for sale financial assets: C ash flow hedges: 1. Effective portion on fair value charges of derivative instruments for cash flow hedges Income tax related to other comprehensive income Main Highlights Total Comprehensive Income *(restated) 8 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities Key Financial Ratios (%) 2019 2018 2017 1. Capital Adequacy Ratio (CAR) Consolidated 24.2 22.2 22.1 C AR Tier I 23.4 21.4 21.3 CAR Tier II 0.8 0.8 0.8 3.8 3.9 4.6 2.0 2.0 1.8 2. Non performing earning assets to total productive assets 2.4 2.3 2.2 3. Non Performing Loan (NPL) to Total Loans - Gross 3.0 2.7 2.8 4. Non Performing Loan (NPL) to Total Loans - Nett 2.0 1.9 1.8 5. Allowance for impairment losses for financial assets to productive assets 2.7 2.8 2.8 112.6 120.2 119.2 2. Assets to Equity Main Highlights I. Capital II. Earning Assets-Consolidated III. Profitability-Consolidated 3.0 3.1 3.1 2. Return on Average Equity (ROAE) 10.3 10.6 10.5 3. Debt to Assets 0.8 0.7 0.8 4. Debt to Equity 3.3 2.9 3.6 5. Net Interest Margin (NIM) 8.9 9.3 51.4 48.8 49.0 7. Operating Expense to Operating Income 82.7 70.9 72.1 5.1 4.4 4.4 1. Loan to Deposit Ratio (LDR) 98.9 95.0 93.3 2. CASA Ratio 49.7 47.1 48.3 8. Cost of funds IV. Liquidity V. Compliance 1. a. Percentage of Violation of Legal Lending Limit a.1. Related Parties - - - a.2. Third Parties - - - b. Percentage of Excess of Legal Lending Limit b.1. Related Parties - - b.2. Third Parties - - - 22.2 17.2 19.4 Primary 6.0 6.5 6.5 Secondary 12.8 2. Minimum Reserve Requirement in Rupiah d) 10.7 8.9 8.1 8.1 4. Net Open Position 1.4 1.2 0.8 VI. Others 1. Total Employees 2. Total Branches 3. Total ATMs and CDMs 28,059 920 e) e) 1,345 32,299 1,179 f) 36,410 f) f) 1,493 f) 1,433 1,396 Corporate Data The figures are derived from consolidated financial statements 2019 and 2018 which have been audited by Public Accounting Firm Tanudiredja, Wibisana, Rintis & Rekan (a member of the PricewaterhouseCoopers network of firms) Note: a) Including loans, receivables from consumer financing of Adira Finance and lease receivable from Adira Finance. b) Including customers deposit, deposit from other banks. c) Excluding call money from other banks. d) In line with PBI No. 20/3/PBI/2018 and PADG No. 21/14/PADG/2019 about Minimum Reserve Requirement in Rupiah and Foreign Currency for Convention Commercial Banks (BUK), Sharia Commercial Banks (BUS) and Sharia Business Units (UUS). e) Including Adira Finance. f) Including Adira Finance and Adira Insurance. Corporate Social Responsibility 16.2 3. Minimum Reserve Requirement in Foreign Exchange Good Corporate Governance Operational Review 8.3 6. Cost to income Management Discussion and Analysis 1. Return on Average Assets (ROAA) Company Profile 6. Loan Loss Coverage Management Report 1. Non performing earning assets and non productive assets to total earnings and non productive assets 9 Annual Report 2019 PT Bank Danamon Indonesia Tbk Sharia Highlights 2019 Corporate Data Table of Margin Distribution for the Month of December 2019 Indicator Corporate Social Responsibility Revenue to be distributed Depositor’s position Total bonus & profit sharing Ratio (%) Rate of return indication (%) A. Financing 1. Bank Good Corporate Governance Average balance (in million Rupiah) 2. Non Bank 227,316 2,109 - - - 4,241,406 19,443 - - - 2,711 23 - - - 321,811 2,741 - - - B. Funding 1. Wadiah current accounts a. Bank b. Non Bank 2. Mudharabah current accounts a. Bank 36,209 308 10 31 1.03 b. Non Bank 348,157 2,965 10 297 1.02 - - - - - 7,741 66 - - - 3. Wadiah savings a. Bank b. Non Bank 4. Mudharabah savings Operational Review a. Bank b. Non Bank Management Discussion and Analysis 706 13 92 1.33 5,922 13 770 1.33 5. Mudharabah deposits a. Bank - 1 month 363,635 3,097 42 1,301 4.29 - 3 months 107,599 916 42 385 4.29 - 6 months 10,987 94 45 42 4.59 - 12 months 21,011 179 42 75 4.28 - 1 month 1,616,122 13,764 42 5,781 4.29 - 3 months 376,593 3,207 42 1,347 4.29 - 6 months 83,370 710 42 298 4.29 - 12 months 18,846 161 42 68 4.33 4,093,073 34,859 b. Non Bank TOTAL Main Highlights Management Report Company Profile 82,956 695,325 10 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities Sources and Utilisation of Virtue Funds Description (in million Rupiah) 2019 2018 2017 1. Sources of Virtue funds a. Infaq 307 116 b. Shadaqah - - - c. Productive Virtue funds refund - - - 227 1,030 666 - - - 412 1,337 782 d. Penalties e. Others Total Virtue funds 2. Utilisation of Virtue funds a. Financing - - - b. Donation 432 715 1,061 Total utilisation of Virtue funds 3. (Decrease)/Increase on utilisation of funds - - - 432 715 1,061 622 (279) 1,099 477 756 5. Virtue funds at the end of the year 1,079 1,099 477 Sources and Distribution Zakat Funds Danamon Syariah Business Unit UUS: Bank Danamon Indonesia Date: December 31, 2019 Description 2018 3,877 2017 2,470 306 2. Source of zakat funds: a. Internal UUS b. External UUS - - - 3,605 1,560 2,335 4,734 153 172 Operational Review 1. Initial balance of zakat funds (in million Rupiah) 2019 Management Discussion and Analysis (20) 4. Virtue funds at the beginning of the year Company Profile c. Others Management Report 185 Main Highlights For the Years Ended December 31, 2019 and 2018 3. Distribution zakat funds to zakat administrator entity a. Amil Zakat Institution 5. Ending balance of zakat funds - - - (1,129) 1,407 2,163 2,748 3,877 2,470 Good Corporate Governance b. Amil Zakat Board 4. (Decrease)/Increase zakat funds Corporate Social Responsibility Corporate Data 11 Annual Report 2019 PT Bank Danamon Indonesia Tbk Share and Bond Highlights Corporate Data Danamon’s Share Price Performance 2019 Price (Rp) Volume 12,000 250,000,000 Corporate Social Responsibility 10,000 200,000,000 8,000 150,000,000 6,000 Good Corporate Governance 100,000,000 4,000 50,000,000 2,000 0 Operational Review 0 Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Volume and Share Price First Quarter Highest Lowest Closing Market Cap (Rp Million) Average 9,200 7,400 9,175 8,569 89,672,348 10,000 4,110 4,800 6,392 46,913,054 Third Quarter 5,275 4,430 4,750 4,850 46,424,376 Fourth Quarter 4,670 3,670 3,950 4,193 38,605,534 Second Quarter Main Highlights Management Report Company Profile Management Discussion and Analysis 2019 Share Price (Rp) 12 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities Danamon’s Share Price Performance 2018 Volume 250,000,000 10,000 Main Highlights Price (Rp) 12,000 200,000,000 150,000,000 6,000 Management Report 8,000 100,000,000 4,000 Company Profile 50,000,000 2,000 0 0 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 Management Discussion and Analysis Jan 18 Dec 18 Volume and Share Price 2018 Share Price (Rp) Lowest Closing Average Market Cap (Rp Million) 7,175 6,150 6,875 6,851 65,894,423 Second Quarter 6,875 5,425 6,375 6,298 61,102,101 Third Quarter 7,400 6,250 7,200 6,776 69,009,432 Fourth Quarter 7,600 6,925 7,550 7,286 72,364,057 Operational Review First Quarter Highest Good Corporate Governance Corporate Social Responsibility Corporate Data 13 Annual Report 2019 PT Bank Danamon Indonesia Tbk Pefindo Sep-19 Stable Corporate Rating idAAA Feb-20 Outlook Stable LT Issuer Default Rating BBB ST Issuer Default Rating F2 National Long Term AAA (IDN) National Short Term F1+ (IDN) Viability Rating BB+ Support Rating 2 Moody’s Feb-20 Outlook Stable Bank Deposits Baa2 / P-2 Baseline Credit Assesment baa3 Adjusted Baseline Credit Assesmennt baa2 Main Highlights Management Report Company Profile Management Discussion and Analysis Operational Review Outlook Fitch Rating Good Corporate Governance Corporate Social Responsibility Corporate Data Securities Ratings 14 PT Bank Danamon Indonesia Tbk Annual Report 2019 Reaching New Heights with Local and Global Capabilities Information on Bonds/Sukuk As of December 31, 2019 Effective notification date Letter number February 2013 No. S-37/D.04/2013 Continuing Bonds III Adira Finance Phase I Year 2015 (Continuing Bonds III Phase I) June 2015 Continuing Bonds III Adira Finance Phase II Year 2015 (Continuing Bonds III Phase II) The trustee Interest payment schedule Quarterly June 2015 No. S-279/D.04/2015 1.437.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds III Adira Finance Phase III Year 2016 (Continuing Bonds III Phase III) June 2015 No. S-279/D.04/2015 1.101.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds III Adira Finance Phase IV Year 2016 (Continuing Bonds III Phase IV) June 2015 No. S-279/D.04/2015 1.700.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds III Adira Finance Phase V Year 2017 (Continuing Bonds III Phase V) June 2015 No. S-279/D.04/2015 2.014.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds III Adira Finance Phase VI Year 2017 (Continuing Bonds III Phase VI) June 2015 No. S-279/D.04/2015 769.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase I Year 2017 (Continuing Bonds IV Phase I) December 2017 No. S-458/D.04/2017 1.300.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase II Year 2018 (Continuing Bonds IV Phase II) December 2017 No. S-458/D.04/2017 1.630.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase III Year 2018 (Continuing Bonds IV Phase III) December 2017 No. S-458/D.04/2017 2.260.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase IV Year 2018 (Continuing Bonds IV Phase IV) December 2017 No. S-458/D.04/2017 618.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase V Year 2019 (Continuing Bonds IV Phase V) December 2017 No. S-458/D.04/2017 2.000.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Bonds IV Adira Finance Phase VI Year 2019 (Continuing Bonds IV Phase VI) December 2017 No. S-458/D.04/2017 1.192.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah II Adira Finance Phase II Year 2016 (Continuing Sukuk Mudarabah II Phase II) June 2015 No. S-279/D.04/2015 86.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah II Adira Finance Phase III Year 2017 (Continuing Sukuk Mudarabah II Phase III) June 2015 No. S-279/D.04/2015 386.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah III Adira Finance Phase I Year 2017 (Continuing Sukuk Mudarabah III Phase I) December 2017 No. S-458/D.04/2017 200.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah III Adira Finance Phase II Year 2018 (Continuing Sukuk Mudarabah III Phase II) December 2017 No. S-458/D.04/2017 490.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah III Adira Finance Phase III Year 2018 (Continuing Sukuk Mudarabah III Phase III) December 2017 No. S-458/D.04/2017 214.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Continuing Sukuk Mudarabah III Adira Finance Phase IV Year 2019 (Continuing Sukuk Mudarabah III Phase IV) December 2017 No. S-458/D.04/2017 96.000 PT Bank Negara Indonesia (Persero) Tbk Quarterly Medium Term Notes I Bank Danamon Year 2019 February 2019 No. S-081/PB.32/2018 500.000 PT Bank Rakyat Indonesia (Perser...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes