While most banks reported impressive growth in the first half (H1) of 2018, Bank Danamon (BDMN) posted a 1% decline in profit in the period. Its performance in the second quarter (Q2) is not changed as is it did in previous quarter.

BDMN said its micro business remains hit its overall performance. Lending for micro segment dropped 40% to Rp4.5 trillion. Its net interest margin (NIM) delined to 9.2% from previous 9.3%. While lending for non-mass market segment was growing.

Lending for micro, small, medium segment rose 14% to Rp30.4 trillion and lending for housing (KPR) jumped 40% to Rp6.9 trillion. BDMN’s total lending and trade financing increased 4% to Rp133.9 trillion. Its financing arm Adira Dinamika Multi Finance (ADMF) reported a 8% grwoth in lending, to Rp48.1 trillion in H1. Lending for two-wheel vehicles grew 14% and lending to four-wheel vehicles rose 26%.

BDMN also reported an increase in non performing loan (NPL) to 3.3% from previous 3.2%, mainly caused by higher NPL for steel industry and shipping segments. To anticipating higher NPL, BDMN allocates sufficient loan provision. Currently its cost of credit reached Rp1.7 trillion with loan loss coverage of 124%.