Jakarta. An annual general shareholders meeting of Bank Danamon Indonesia on Tuesday approved a plan to distribute Rp 781.21 billion ($60.1 million) in dividends — the equivalent of 30 percent of the bank’s net income last year.

The lender, Indonesia’s sixth-largest lender by assets, said in a statement shareholders had also approved the appointment of Emirsyah Satar, a former chief executive of flag carrier Garuda Indonesia, as an independent commissioner.

Emirsyah resigned from his Garuda post in December and will sit on the board of commissioners until 2017.

Bank Danamon — whose shares are mostly controlled by Asia Financial, a unit of Singapore’s Temasek — posted a massive drop in net profit last year to Rp 2.6 trillion ($199 million), down 36 percent from Rp 4 trillion a year earlier.

Indonesian lenders dealt with slower economic growth and a high interest rate environment, which dragged down the lending growth and profitability.

Sng Seow Wah, Bank Danamon’s president director said the lender aims to improve customer service to build a stronger foundation for a sustainable business growth.

“In 2015 we will focus on mass markets, especially in the micro enterprises sector and motor vehicle financing,” he said in a statement.

Bank Danamon’s finance director Vera Eve Lim has previously said the Jakarta-based bank aims to grow total loans by 15 percent in 2015, on top of 18 percent growth in loans to micro, small and medium enterprises.

Bank Danamon’s stock price declined 0.1 percent and ended trading at Rp 4,995 per share at the Indonesia Stock Exchange on Tuesday.

GlobeAsia

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Source: The Jakarta Globe