Yasushi Itagaki, the chief executive of Bank Danamon Indonesia. (B1 Photo/Primus Dorimulu)

Danamon Eyes Top Five Spot and More


OCTOBER 17, 2019

Jakarta. Bank Danamon Indonesia, the country's fifth-largest lender by market capitalization, aims to grow its assets, loan disbursement and many of its other metrics to be among the top five of banks in the archipelago, capitalizing on the global expertise of Mitsubishi UFJ Financial Group, its newest controlling shareholder. 

"After reaching the top five based on market cap, Danamon is trying to become the top five in other fields as well," its chief executive Yasushi Itagaki said at a dinner with editor-in-chiefs in Jakarta on Wednesday.

Danamon's market capitalization – the total value of the lender's outstanding stock – had reached Rp 44.7 trillion ($3.2 billion) on Thursday, behind Bank Central Asia (Rp 754 trillion), Bank Rakyat Indonesia (Rp 481 trillion), Bank Mandiri (Rp 304 trillion) and Bank Negara Indonesia (Rp 132 trillion). 

Danamon has Rp 163 trillion in assets, just over a fifth of those of CIMB Niaga, the local unit of Malaysian financial conglomerate CIMB that now sits in fifth place in the asset-ranking. State-controlled Bank Rakyat Indonesia remains the lender with the largest assets at Rp 1,221 trillion, followed by Mandiri at Rp 1,066 and Bank Central Asia at Rp 867 trillion. 

In March, Mitsubishi UFJ Financial Group (MUFG) completed a take over of 94 percent of Danamon's shares for Rp 52.8 trillion in one of the largest acquisitions in Indonesia in the past decade.

Yasushi said MUFG wants Danamon to keep growing at a steady rate. 

"Shareholders want sustainable growth," said the banker, who has led Danamon for two months.

Danamon will also try to boost the growth of third-party funds (DPK). If deposits increase, credits will increase and assets will also automatically expand. "Our shareholders want to emphasize the importance of growth," Yasushi said.

MUFG – Japan's largest bank – will bring its expertise as a global player and combine it with Indonesia's potential, Yasushi said.