Bank Danamon to distribute US$124 million dividend

Amount is equivalent to 30% of net income last year.

Indonesia’s largest lender approved the dividend distribution during its recent annual general shareholders meeting. Its net income last year came to US$411 million. Investors will receive a dividend of US$0.013 per share.

The remaining profit will be booked as retained earnings. The bank said the dividend distribution will not hurt its capital adequacy ratio, which will remain at 18.5% after the dividend payments. CAR will be maintained at 17% this year, which will be sufficient to support its lending growth for the next three years.

PT Bank Danamon Indonesia’s 2012 net income grew 22% from US$338 million in 2011 due to a strong rise in net interest income.

NII rose 19% to US$1.33 billion while fee based income rose 9% to US$418 million.

The bank is currently waiting for an assessment by the central bank of a US$6.8 billion bid by Singapore’s DBS Group Holdings to buy control of Bank Danamon Indonesia from Singapore sovereign wealth fund Temasek Holdings.