Implemented initiatives resulted in key improvements

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1 INVESTOR NEWSLETTER Implemented initiatives resulted in key improvements Highlights of 3Q15 and 9M15 Results Loan amount was Rp. 133 trillion in 3Q15. Growth in Corporate, Commercial, and SME segments were offset by the decrease in Mass Market. LFR stood at 91.1%, below BI s requirement of 94.0%. Less reliance on high cost third-party funds improved quarterly NIM from 7.8% in 2Q15 to 8.3% in 3Q15. Pre-Provisioned Operating Profit ( PPOP ) for 9M15 grew by 6% YoY to Rp. 6.1 trillion. CoC increased 40bps QoQ to 3.9% in 3Q15, reflecting current weakness in the economy. CoC for the 9M15 was 3.5% compared to 2.8% for 9M14. NPL (gross) stood at 3.0% compared to 2.4% in 3Q14 and 2.9% in 2Q15. Menara Bank Danamon, 6 th floor Jl. Prof. Dr. Satrio Kav. E IV no. 6 Jakarta Tel Fax investor.relation@danamon.co.id NPAT in 3Q15 was Rp. 634 billion, bringing 9M15 NPAT to Rp. 1.9 trillion. Reza Sardjono, CFA reza.sardjono@danamon.co.id Indah Hermawan Indah.hermawan@danamon.co.id Ridy Sudarma ridy.sudarma@danamon.co.id Macroeconomic environment GDP & Inflation The macroeconomic indicators were still weak; market volatility is likely to continue until year end GDP growth in 2Q15 was 4.67% YoY, a significant slowdown compared to last year s 5.1% GDP growth. The weakness in the Rupiah accompanied by unstable movement in food prices led to a widespread pessimism on the economy. Businesses are postponing expansion plans, while consumers are reducing secondary consumptions. Both household consumption and government spending growth were weaker than expected at 5.0% and 2.3%, respectively. We forecasted full year GDP growth at 4.8% Indonesia Inflation (%yoy) Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 The economic slowdown helped to keep inflation pressure low. Inflation in September reached 6.8% YoY, a 0.05% deflation from prior month. The Government closely monitors food distributions to avoid prices from shooting up. They have opened up domestic food supply imports in the face of El Nino threat. Inflation is expected to move towards 4% by yearend. The Rupiah has been very volatile in the past few months mainly due to worsening global sentiments from the threat of the Fed s rate hike, and China s currency devaluation. In September, the Rupiah reached Rp. 14,700/USD exchange rate, a level that has not been seen since the crisis. However, since then, disappointing September US nonfarm payrolls data has reduced the chance of the Fed hiking interest rates this year. This negative news on the US economy, supported by a positive welcome of the Indonesian Government s stimulus packages led to a sharp strengthening of the Rupiah to Rp. 13,300/USD level. Going forward, as US economic data continue to give mixed signals, we expect

2 Government Bond Yield & IDR Exchange rate BI Rate & 3Mo Deposit Rate the Rupiah fluctuations to continue. Since August, economic indicators have shown some signs of improvement. Some of the government projects have started, which will lead to a rebound in the construction sector. This is confirmed by the rebound in the Aug-Sept cement sales. However these improvements were limited to the infrastructure related sectors. We have not yet seen the spillover to the private sector. The Government, BI and the OJK have been trying to jump-start the economy by introducing five economic stimulus packages. These policies were designed to invite more investments and revive economic activities (i.e. streamlining the bureaucracy, setting up standard in minimum wage calculation and introducing various tax incentives). Additionally, BI has opened up the possibility for loosening the monetary policy. However we think they will wait for more clarity on the Fed s policy move and the impact on the Rupiah before making any changes to the interest rate Mar Sep Apr Oct-2015 Cement Consumption Slowing industry loan growth with ample liquidity; asset quality remained a burden The Banking sector also shared similar pattern as the overall economy. From December to August 2015, loan grew only by 5.6% or 10.9% YoY to Rp. 3,881 trillion as demand was soft. On the funding front, slightly higher deposit growth of 6.1% YtD or 13.2% YoY to Rp. 4,366 trillion had lowered industry LDR to 88.8% as of August 2015 compared to 89.4% at the end of 2014 (90.63% at August 2014). However, liquidity as per August 2015 was tighter compared to that of prior quarter when LDR was 88.5%. Starting from August 2015, OJK had introduced Loan to Funding Ratio (LFR) to replace Loan to Deposit Ratio (LDR) as an indicator to measure liquidity. This is expected to spur growth by providing more room for alternative funding sources. Deteriorating asset quality in the economic downturn is inevitable. NPL continued its upward trend across all sectors. NPL ratio was 2.8% in August 2015 (up from 2.3% last year) while SM ratio was 5.7% (up from 4.5% in August 2014). In nominal term, NPL rose 32.6% YoY to Rp. 107 trillion while SM loans rose 32.6% YoY to Rp. 220 trillion. On sector basis, construction, mining, and trading were among the most affected industry by the slump. NPL for mining and construction were 3.7% (+120bps YoY) and 5.5% (+90bps YoY), respectively, while trading booked 4.1% of NPL from 3.3% a year ago. Page 2 of 25

3 Car & Motorcycle Sales Weakened economy is also reflected in the drop of new auto sales. The 9M15 demand for 2W and 4W plunged by 20.7% and 18.0% y-y to 4.8 million units and 765 thousand units, respectively. On the positive side, sales of 2W and 4W in the month of August increased by 47% and 63%, respectively as compared to the July 2015 data. Bank Danamon s Performance Loan Composition & Size (Rp trillion) % 13% 12% 13% 14% 11% 11% 12% 12% 12% 4% 4% 4% 4% 3% 15% 15% 16% 17% 17% 6% 6% 6% 6% 6% 51% 50% 50% 48% 48% 3Q14 4Q14 1Q15 2Q15 3Q15 Mass SME Commercial Consumer ABF Corporate Mass Market Loan Composition & Size (Rp trillion) % 37% 36% 36% 36% 14% 14% 13% 13% 12% 3Q14 4Q14 1Q15 2Q15 3Q15 DSP Adira Finance Loan growth in Corporate, Commercial, and SME segments were offset by the decline in Mass Market In 9M15, loans to SME, Commercial and Corporate banking segments grew compared to the same period a year ago. However, their gains were offset by declines in the loans to the mass market sector, particularly loans to the micro enterprises and automotive segments. Consequently, total loans declined by 4% to Rp trillion in the first nine months of 2015 from Rp trillion during the same period last year. Our mid size loans, comprising of SME, Commercial and ABF loans, grew by 2.4% YoY to Rp trillion. SME grew the most at 7.4% YoY to Rp trillion, backed by increased in overdraft and working capital loans. Commercial loans grew moderately at 4.9% to Rp trillion YoY. Growth in mid size loans was also supported by SME and Commercial Sharia products. Sharia loans increased 42.8% YoY to Rp. 2.9 trillion. On the other hand, due to the continuing slump in the agriculture and mining industry, ABF loans declined by 22.1% YoY to Rp. 4.5 trillion. By the end of 3Q15, the Bank s mining and agriculture exposures were 1.5% and 4.4% of total loans, respectively. Corporate loans increased by 4.8% YoY to Rp trillion. This was mainly driven by non-trade finance loans. On the contrary, demand for trade finance decreased due to the weak economy and depreciating Rupiah. Retail loans grew 1.2% to Rp. 8.3 trillion YoY. Growth in credit card loans was partially offset by the decline in unsecured personal loans and mortgages. In line with the auto industry trend, Adira Finance loans declined by 4.5% YoY from Rp trillion to Rp trillion. The decrease in new auto loans were accompanied by an increase in used auto loans. Loan mix also continued to shift towards 4W; from 50% in 3Q14 to 52% in 3Q15. This trend in asset mix shift will reduce NIM but improve asset quality over time. Page 3 of 25

4 Micro loans contracted 17.9% YoY, from Rp trillion to Rp trillion. Management continues their effort to right size the micro-financing business with focus on asset quality and efficiency. Adequate liquidity LDR (%) Dec-14 Aug As per BI regulation No. 17/11/PBI/2015 dated 25 June 2015, the Regulator has changed the indicator used to monitor liquidity in bank. Loan to Deposit Ratio (LDR) has been replaced by Loan to Funding Ratio (LFR) starting in August BUKU 1 BUKU 2 BUKU 3 BUKU 4 Total In addition to third party funds used in LDR calculation, the denominators in LFR includes issued marketable securities if they are owned by nonbank. Since most of Danamon s marketable securities are owned by banks, the change from LDR to LFR didn t significantly impact Danamon s ratio in the current period. As of the end of 3Q15, LFR stood at 91.1%. The average LFR during August to September 2015 was 90.2%. These numbers were well within the 94.0% requirement set by the regulator. The Bank manages liquidity risk through Maximum Cumulative Outflow (MCO) and other liquidity indicators including Liquidity Stress Test. Liquidity risk is measured and monitored on a daily basis to meet both regulatory and internal requirements. As per end of Sep 2015, the Bank has positive MCO and positive Liquidity Stress Test result. In 9M15, CASA ratio improved to 45.4% compared to 43.2% a year ago. CASA balances grew by 5% to Rp trillion from Rp trillion a year ago. Time deposits decreased by 4% to IDR 63.2 trillion. NIM & CoC (%) Q14 4Q14 1Q15 2Q15 3Q15 NIM CoC Risk adj NIM NIM improved 50 bps on a quarterly basis Despite the soft economy, NIM improved from 7.8% in 2Q15 to 8.3% in 3Q15. Less reliance on high-cost deposits impacted CoF positively. Management s focus on pursuing quality CASA and limiting high-cost deposits resulted in 100 bps of CoF improvement since the beginning of the year. Management s plan to increase Danamon s transaction banking presence should help to attract low-cost CASA in the long run. At 8.1%, NIM for 9M15 remained 30 bps below that of 9M14 due to a shift in asset mix towards non mass market. Mass market loan composition declined from 51% to 48% of the total portfolio over the past year. Hence, the blended yield came down from 14.2% in 9M14 to 13.6% in 9M15. SME and Commercial segments are expected to play an increasingly Page 4 of 25

5 important role for the Bank s future growth both from the lending and the funding perspective. Lower credit-related fee income; non-credit related fee income increased by 12% General Insurance (Rp bn) CAGR 10% 826 YoY 10% M14 9M15 Note : General insurance including investment fees Non-interest income declined 7% YoY from Rp. 3.0 trillion in 9M14 to Rp. 2.8 trillion in 9M15. The lower loan disbursement also resulted in lower credit related fee. On the other hand, non-credit related fee income for the 9M15 increased 8% YoY to Rp. 1.3 trillion. While the growth was mostly driven by general insurance (increasing by Rp. 58 billion), other elements of non-credit related fee income also increased. Bancassurance fee increased by Rp. 27 billion, while fee income from cash management increased by Rp. 4 billion YoY. NPL by Sector (%) Trading Household Processing Real Estate Agri Mining Construction // 10.6 Sep-14 Sep-15 Asset quality continue to be impacted by the economy In line with industry NPL trend in this challenging economic environment, asset quality worsened compared to the previous quarter. NPL (gross) stood at 3.0% at the end of 3Q15, a 10 bps increase from last quarter s 2.9% level. This also represented a 60 bps increase from 9M14 NPL of 2.4%. CoC increased by 70 bps YoY to 3.5% in 9M15. This increase in NPL occurred across the majority of sectors. Increase of NPL in the processing sector by 170 bps was primarily due to oil and gas related borrower. NPL in the trading industry also rose by 80 bps to 3.8%, mainly from automotive related debtor. On the other hand, NPL in the mining sector decrease by 860 bps due to loan write-off. We continuously strive to improve the asset quality through strict risk assessment, disciplined collection and recoveries effort. Page 5 of 25

6 Disciplined operating expenses management Operating Expenses , ,411 2,342 2,304 2,231 3Q14 4Q14 1Q15 2Q15 3Q15 As a bank serving mass market with coverage across Indonesia, Danamon is one of the largest employers in the financial sector. Manpower and facilities costs represented about two third of total operating expenses. In the past year, management have focused on controlling operating expenses. Re-alignment of network and resources were performed to improve productivity. At the same time, Shared Services were introduced to reduce redundancies in support and back office functions. As a result, 9M15 operating expense was Rp. 6.9 trillion, 7% lower compared to that of 9M14. CIR also improved by 320 bps to 53.0% for the same period. CIR for 3Q15 was 51.0%. PPOP grew 6% YoY to Rp. 6.1 trillion and 10% QoQ to Rp. 2.1 trillion. NPAT NPAT for 3Q15 was Rp. 634 billion (14% QoQ increase), bringing 9M15 NPAT to Rp. 1.9 trillion, Despite the quarterly improvements, the 9M15 NPAT represented a 10% YoY decline. RoA and RoE for 9M15 were 1.3% and 7.9%, respectively. In the face of the economic condition, this quarter we saw some positive results from management s initiatives, including discipline in funding and operating expenses. In the coming quarters more initiatives will be introduced to help Danamon to grow and diversify its portfolio, improve asset quality, and boost productivity. We strongly believe that these measures will benefit our customers, shareholders and employees in the long run. Page 6 of 25

7 Corporate Updates Selected events and awards Jelajah Pasar Rakyat Yogyakarta Through Yayasan Danamon Peduli, Danamon signed an MoU with the Yogyakarta municipal government to revitalize one of the city s traditional markets. The signing ceremony was conducted amid Yayasan Danamon Peduli s nationwide campaign to promote traditional markets, encouraging members of the public to visit the markets, which are clean, healthy, and fun places to spend time with their families. MoU Signing Ceremony with BCA Danamon signed an MoU with Bank Central Asia (BCA) and Rintis Sejahtera on Flazz prepaid card co-branding and the development of its supporting infrastructure. The partnership between Danamon and BCA covers the issuance of BCA s multipurpose prepaid card, Flazz, by Danamon. While, the partnership between Danamon and Rintis, as the institution that manages the PRIMA network, covers the development of the balance top-up infrastructure for the Flazz card through Danamon s network. Indonesia Banking Award 2015 by Tempo Group: The Most Efficient Bank The Best Bank in Retail Banking Infobank Awards 2015, Very Good for the assets above IDR. 100 T category Page 7 of 25

8 Regulatory Updates Loan to Funding Ratio (LFR) has replaced LDR formula since August 2015 As per BI regulations No. 17 / 11 / PBI / 2015 dated 25 June 2015, the LDR formula was replaced by LFR. The formula used in the LFR calculation is as follow: LFR = Loan (excluding loan to oter banks) 3rd parties fund + Marketable securities Marketable securities used in the LFR calculation are those that meet the following criteria: Types: Medium Term Notes (MTN), Floating Rate Notes (FRN), or bonds (excluding subordinated bonds) Issued through Public Offering Have investment grade by rating agency recognized by OJK Owned by non-bank Administered by KSEI Value of the marketable securities used in the LFR calculation is the nominal value of the securities as at the end of the previous 2 months prior to the reporting date; i.e. nominal value of marketable securities as at the end of May 2015 will be used in the calculation of July 2015 LFR. The upper limit of the regulatory LFR is 92%. It can be increased to 94%, if the banks met certain conditions. Page 8 of 25

9 Key Figures and Ratios INCOME STATEMENTS (Rp billion) 1H14 1H15 YoY 1Q15 2Q15 3Q15 QoQ Net Interest Income 10,171 10,193 0% 3,430 3,310 3,453 4% Fee Income 3,003 2,790-7% % Operating Income 13,174 12,983-1% 4,321 4,290 4,372 2% Operating Expenses 7,410 6,878-7% 2,304 2,342 2,232-5% Pre-Provisioned Op. Profit ( PPOP ) 5,764 6,105 6% 2,017 1,948 2,140 10% Cost of Credit 2,835 3,500 23% 1,091 1,146 1,263 10% Risk Adjusted Op. Profit 2,929 2,605-11% % Net Profit after taxes 2,106 1,895-10% % BALANCE SHEETS (Rp billion) Total Assets 194, ,012 0% 193, , ,012-3% Loans (gross) 138, ,615-4% 135, , ,615-2% Government Bonds 6,488 6,016-7% 7,014 6,382 6,016-6% Total Funding 144, ,827-2% 143, , ,827-4% Current Account 20,053 19,899-1% 22,406 23,396 19,899-15% Savings 29,990 32,679 9% 31,531 31,764 32,679 3% Time Deposit 65,823 63,215-4% 62,567 65,884 63,215-4% Borrowings and LT. Funding 28,267 26,033-8% 26,805 26,404 26,033-1% Equity 32,101 33,668 5% 33,505 33,056 33,668 2% KEY RATIOS (%) Net Interest Margin Cost of Credit Cost to Income BOPO ROAA ROAE Assets to Capital (x) Regulatory LFR* Stand Alone Loan to Funding** Consolidated Loan to Funding * Stand Alone CAR Consolidated CAR NPL Gross Loan Loss Coverage (LLP/NPL) *) Loan to Funding Ratio ( LFR ) calculation is as stipulated in BI regulation No. 17 / 11 / PBI / 2015 dated 25 June 2015.Effective since August 2015,it replaced the LDR. **) Loan to funding ( LTF ) is defined as (Loans + Reserves with BI + Cash in Vault + HTM bonds) / (Third Party Deposits + net borrowing and LTF + net capital). This ratio is different from the LFR as stipulated in BI Regulation in No. 17/11/PBI/2015 Page 9 of 25

10 Credit Ratings Danamon PEFINDO August 2015 Fitch s August 2015 Moody s June 2015 Outlook LT General Obligation Outlook LT Issuer Default Rating ST Issuer Default Rating National Long Term National Short Term Viability Rating Support Rating Support Rating Floor Outlook Bank Deposits Baseline Credit Assessment Adjusted Baseline Credit Assessment Stable idaaa Stable BB+ B AA+ (idn) F1+ (idn) bb+ 3 BB Stable Baa3/P-3 Ba1 Baa3 Ownership Structure Ownership Structure As of 30 September 2015 Number of Shares Ownership (%) Asia Financial (Indonesia) Pte, Ltd. 6,457,558, % JPMCB - Franklin Templeton Inv. Funds 652,800, % Public < 5% 2,474,284, % Total 9,584,643, % The ultimate shareholder of Asia Financial (Indonesia) Pte, Ltd. is Temasek Holding Pte, Ltd. an investment holding company based in Singapore. Page 10 of 25

11 BDI s Daily Share Price and Trading Volume Daily share price and trading volume BDMN IJ 30,000 25,000 20,000 15,000 10,000 5, ,000 4,000 3,000 2,000 1,000 0 Volume ('000) (lhs) Share Price (rhs) Page 11 of 25

12 Statements of Financial Positions As at 30 September 2015 and 31 December 2014 (in million Rupiah) NO. ACCOUNTS BANK CONSOLIDATED 30 Sep Dec 2014 *) 30 Sep Dec 2014 *) ASSETS 1. Cash 1,988,453 2,728,140 2,167,194 2,856, Placements with Bank Indonesia 20,217,033 13,384,832 20,217,033 13,384, Placements with other banks 9,592,506 8,976,765 11,717,782 11,473, Spot and derivative receivables 409, ,267 1,819, , Marketable securities a. Designated at fair value through profit/loss 329, , , ,775 b. Available for sale 11,941,671 12,920,272 12,932,758 13,589,338 c. Held to maturity 161, , , ,346 d. Loans and receivables Securities sold under repurchase agreements (repo) 195, , , , Securities purchased under resale agreements (reverse repo) - 540, , Acceptance receivables 6,511,554 7,567,043 6,511,554 7,567, Loans a. Designated at fair value through profit/loss b. Available for sale c. Held to maturity d. Loans and receivables 103,184, ,088, ,184, ,088, Sharia financing 3,187,461 2,486,315 3,187,461 2,486, Consumer financing receivables ,532,804 27,536,299 Allowance for impairment losses on consumer financing receivables -/- - - (1,098,792) (1,117,447) 12. Premium receivables , , Reinsurance Assets , , Investments 2,815,363 2,802, , , Allowance for impairment losses on financial assets -/- a. Marketable securities (500) (21,442) (500) (21,442) b. Loans (3,139,893) (2,800,918) (3,139,893) (2,800,918) c. Others (7,641) (7,663) (41,930) (36,606) 16. Intangible assets 1,114,325 1,022,520 3,226,642 3,117,093 Accumulated amortisation on intangible assets -/- (895,510) (799,660) (1,858,491) (1,749,851) 17. Fixed assets and equipment 4,379,073 4,135,606 5,361,033 5,137,287 Accumulated depreciation of fixed assets and equipment -/- (2,287,218) (2,165,411) (2,809,109) (2,647,430) 18. Non earning asset a. Idle properties 16,397 16,397 16,397 16,397 b. Foreclosed assets c. Suspense accounts d. Interbranch assets i. Conducting operational activities in Indonesia ii. Conducting operational activities outside Indonesia Allowance for impairment losses on non financial assets -/ Leased receivables - - 1,710,106 1,945, Deferred tax assets 1,109,501 1,152,466 1,218,152 1,260, Other assets 2,796,134 2,206,829 3,273,793 2,580,497 TOTAL ASSETS 163,621, ,323, ,011, ,788,112 Page 12 of 25

13 NO. ACCOUNTS BANK CONSOLIDATED 30 Sep Dec 2014 *) 30 Sep Dec 2014 *) LIABILITIES AND EQUITY 1. Current accounts 19,520,571 22,028,801 18,441,931 21,436, Savings 32,272,366 34,624,640 32,272,366 34,624, Time deposits 60,491,198 58,347,110 60,417,061 58,325, Revenue sharing investment funds 2,987,055 2,165,150 2,948,536 2,108, Deferred premium income - - 1,244,743 1,235, Unearned premium reserve , , Loans from Bank Indonesia Borrowings from other banks 5,235,431 2,428,794 5,235,431 2,428, Spot and derivative liabilities 284, , , , Securities sold under repurchase agreements (repo) 179, , , , Acceptance payables 6,509,673 7,554,464 6,509,673 7,554, Marketable securities issued 920, ,985 11,366,617 11,892, Borrowings 1,929,639 2,042,731 14,497,682 14,496, Security deposits 17,048 11,907 17,048 11, Interbranch liabilities a. Conducting operational activities in Indonesia b. Conducting operational activities outside Indonesia Deferred tax liabilities , , Other liabilities 3,528,552 3,516,581 6,636,526 6,928, Profit sharing investment funds TOTAL LIABILITIES 133,877, ,491, ,085, ,043,041 EQUITY 19. Issued and fully paid capital a. Authorized capital 12,238,589 12,238,589 12,238,589 12,238,589 b. Unpaid capital -/- (6,337,467) (6,337,467) (6,337,467) (6,337,467) c. Treasury stock -/ Additional paid-up capital a. Agio 7,391,756 7,391,756 7,391,756 7,391,756 b. Disagio -/ c. Donated capital d. Capital paid in advance e. Others Other comprehensive income a. Adjustment in foreign currencies translation b. Gains (losses) from changes in the value of financial assets as available for sale 40, ,076 (33,582) 80,544 c. Effective portion on fair value for cash flow hedge 16,951 8, ,883 (85,766) d. Gain on revaluation of fixed asset e. Part of other comprehensive income of associates f. Actuarial gain (loss) from defined benefit program (317,786) (315,775) (365,282) (363,271) g. Income tax related to other comprehensive income 104,578 85,111 93, ,512 h. Others Difference in quasi- reorganisation Difference in restructuring value of transaction of entities under common control Others Equity Reserves a. General reserves 302, , , ,767 b. Specific reserves Retained earnings a. Previous years *) 14,565,390 11,014,012 18,377,221 16,580,392 b. Current year 1,738,759 4,358,567 1,894,902 2,604,017 TOTAL EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT EQUITY 29,744,073 28,832,293 33,668,180 32,507, Non-controlling interests , ,998 TOTAL EQUITY 29,744,073 28,832,293 33,925,628 32,745,071 TOTAL LIABILITIES AND EQUITY 163,621, ,323, ,011, ,788,112 *) Presented after adjustment related to the initial implementation of SFAS 24 (2013 Revision) Page 13 of 25

14 Statements of Comprehensive Income For the 9 Months Periods Ended 30 September 2015 and 2014 (in million Rupiah, except earnings per share) NO. ACCOUNTS BANK CONSOLIDATED 30 Sep Sep 2014*) 30 Sep Sep 2014*) INCOME AND EXPENSES FROM OPERATIONS A. Interest Income and Expenses 1. Interest Income a. Rupiah 11,779,027 11,720,969 16,435,015 16,562,783 b. Foreign currencies 532, , , , Interest Expense a. Rupiah 4,513,167 4,659,668 5,681,806 5,952,549 b. Foreign currencies 390, , , ,789 Net Interest Income 7,407,934 7,148,797 10,373,523 10,344, Underwriting income 3.1. Premium income - - 1,303,486 1,114, Underwriting expense , ,150 Net Underwriting Income , ,718 Net Interest and underwriting income 7,407,934 7,148,797 10,726,701 10,700,192 B. Other Operating Income and Expense 1. Other Operating Income 2,393,948 5,043,054 3,238,035 3,901,763 a. Increase in fair value of financial assets i. Marketable securities - 2,627-2,627 ii. Loans iii. Spot and derivatives 284, , , ,480 iv. Other financial assets b. Decrease in fair value of financial liabilities c. Gain from sale of financial assets - - i. Marketable securities 16,514 21,277 26,803 23,590 ii. Loans iii. Other financial assets d. Gain from spot and derivative transaction (realised) 73,919 63,615 73,919 63,615 e. Gain from investment under equity method f. Dividend 518,053 2,798,724 1,347 1,479 g. Fees/commissions and administrative 1,040,684 1,157,918 1,569,973 1,668,180 h. Recovery of impairment loss reserves i. Other income 459, ,413 1,281,159 1,654, Other Operating Expenses 7,620,558 7,824,965 11,309,993 11,685,324 a. Decrease in fair value of financial assets i. Marketable securities 8,990-8,990 - ii. Loans iii. Spot and derivatives 139, , , ,585 iv. Other financial assets b. Increase in fair value of financial liabilities c. Losses from sale of financial assets i. Marketable securities 621 2, ,311 ii. Loans iii. Other financial assets d. Losses from spot and derivative transaction (realised) 120, , , ,589 e. Impairment losses on financial assets i. Marketable securities ii. Loans 2,300,712 1,775,943 3,517,111 2,896,510 iii. Sharia financing 43,686 11,221 43,686 11,221 iv. Other financial assets 6,320 8,254 64,442 68,057 f. Losses related to operational risk 4,654 6,861 5,407 7,671 g. Losses from investment in shares under equity method h. Fees/commissions and administrative 162, , , ,640 i. Losses from decrease in value of non financial assets j. Salaries and employee benefits 2,563,486 2,706,218 3,856,191 4,313,145 k. Promotion expenses 115, , , ,029 l. Other expenses 2,153,918 2,235,974 3,248,977 3,270,566 Net Other Operating Expenses (5,226,610) (2,781,911) (8,071,958) (7,783,561) OPERATING INCOME 2,181,324 4,366,886 2,654,743 2,916,631 Page 14 of 25

15 NO. ACCOUNTS BANK CONSOLIDATED 30 Sep Sep 2014*) 30 Sep Sep 2014*) NON OPERATING INCOME 1. Gain/(loss) from sale of premisses and equipment 1,258 1,714 5,711 1, Gain (loss) on foreign currencies translation 335 (70) 10,446 1, Income(expenses) non operating expenses (2,557) 6,883 (78,946) (41,451) NON OPERATING LOSS (964) 8,527 (62,789) (38,416) INCOME BEFORE INCOME TAX 2,180,360 4,375,413 2,591,954 2,878,215 1 Income tax a. Income tax expenses 379, , , ,412 b. Deferred tax expenses (income) 62,432 32,964 (20,567) 8,095 NET INCOME 1,738,759 3,952,621 1,945,772 2,168,708 OTHER COMPREHENSIF INCOME NET OF TAX 1 Items that not reclassified to profit or loss a. Gain fixed asset revalutioan b. Actuarial gain (loss) from defined benefit program (2,012) - (2,012) - c. Part of other comprehensive income of associates d. Others e. Income tax related to components that will not be not reclassified to profit or loss Items that may reclassified to profit or loss a. Adjustment from translation of financial statements b. Gains (losses) from change in value of available for sale financial assets (71,579) 23,978 (118,943) 34,670 c. The effective portion of cash flow hedges 8,294 (13,558) 198,795 (88,753) d. Others e. Income tax related to items that may be reclassified to profit or loss 18,963 (10,423) (28,662) 8,264 Other comprehensive income, net of tax (45,831) (3) 49,681 (45,819) TOTAL COMPREHENSIVE INCOME (LOSS) 1,692,928 3,952,618 1,995,453 2,122,889 Income attributable to : EQUITY HOLDERS OF THE PARENT ENTITY 1,738,759 3,952,621 1,894,902 2,105,666 NON-CONTROLLING INTERESTS ,870 63,042 TOTAL INCOME FOR THE CURRENT YEAR 1,738,759 3,952,621 1,945,772 2,168,708 Total other comprehensive income attributable to : EQUITY HOLDERS OF THE PARENT ENTITY 1,692,928 3,952,618 1,942,255 2,061,679 NON-CONTROLLING INTERESTS ,198 61,210 TOTAL OTHER COMPREHENSIVE INCOME 1,692,928 3,952,618 1,995,453 2,122,889 PROFIT (LOSS) TRANSFERRED TO HEAD OFFICE DIVIDEND (781,149) (1,212,457) (781,149) (1,212,457) EARNINGS PER SHARE *) As reclassified (Note 2) Page 15 of 25

16 Reconciliation between amounts stated in the statement of comprehensive income and those stated in the discussion section/ analyst briefing For the 9 Months Period ended 30 September 2015 Newsletter a b c d e f g h i Net Interest Income Net Underwriting Income Net Sharia Interest Income Other Operating Income Other Operating Expenses Non Operating Loss Non Operating Income Income before Tax Taxes Minority Interest Income after Minority Interest 10, ,238 (11,304) - (69) 2,592 (646) (51) 1,895 a+c b+d e f+g h i Net Interest Income Non- Interest Income Operating Income Operating Expenses Pre-Provision Operating Profit Cost of Credit Non Operating Income/ (Loss) Taxes Minority Interest Net Profit after Tax and Minority Interest 10,374 3,591 13,965 (11,304) 2,660 - (69) (646) (51) 1,895 (181) (181) LPS Deposit Insurance (26) - Provision for ADMF acquisition cost (150) (150) (150) Write off on amortization cost (195) (195) ADMF indirect acquisition cost (140) (140) Decrease in fair value of financial assets (MTM) (120) (120) Losses from spot and derivative transaction (realised) - 3,625 3,625 (3,625) - Impairment losses on financial assets (165) (165) Fees/commissions and administrative expenses (56) (56) (56) 56 - Others 10,193 2,790 12,983 (6,878) 6,105 (3,500) (13) (646) (51) 1,895 Analyst Briefing Presentation Remark Page 16 of 25

17 Key Financial Ratios As at 30 September 2015 and 2014 NO. RATIOS (%) 30 Sep Sep 2014 CONSOLIDATED RATIOS : I. Capital 1. Capital Adequacy Ratio (CAR) 19.05% 17.95% II. Earning assets 1. Non-performing earning assets and non productive assets to total earnings and non productive assets 1.91% 1.49% 2. Non-performing earning assets to total productive assets 2.39% 1.94% 3. Allowance for impairment losses for financial asset to productive asset 2.59% 2.29% 4. NPL gross 2.99% 2.36% 5. NPL net 1.78% 1.43% III. Rentability 1. Return on Assets (ROA) 1.75% 2.05% 2. Return on Equity (ROE) 7.89% 9.25% 3. NIM including third party premium expenses 8.15% 8.39% 4. Cost to income 52.97% 56.25% BANK RATIOS : I. Capital 1. CAR 20.15% 18.20% II. Earning assets 1. Non-performing earning assets and non productive assets to total earnings and non productive assets 1.89% 1.43% 2. Non-performing earning assets to total productive assets 2.47% 1.96% 3. Allowance for impairment losses for financial asset to productive asset 2.28% 2.02% 4. NPL gross 3.24% 2.54% 5. NPL net after impairment value 1.85% 1.44% III. Rentability 1. ROA 1.76% 3.76% 2. ROE 8.26% 21.06% 3. NIM 7.11% 7.28% 4. NIM including third party premium expenses 6.93% 7.11% 5. Operating expenses to operating income 85.17% 74.74% IV. 6. Cost to income 53.70% 59.06% Liquidity LFR *) 91.09% 91.34% V. Compliance 1. a. Percentage violation on Legal Lending Limit a.1. Related parties 0.00% 0.00% a.2. Third parties 0.00% 0.00% b. Percentage lending in excess of Legal Lending Limit b.1. Related parties 0.00% 0.00% b.2. Third parties 0.00% 0.00% 2. Statutory Reserve Requirements (GWM) a. GWM Primary Idr 8.06% 8.07% b. GWM Foreign Currency 8.10% 8.17% 4. Net Open Position 0.14% 1.34% *) Starting from August 2015, Loan to Funding ratio (LFR) has replaced the LDR. The LFR is calculated in accordance to the Bank Indonesia Regulation (PBI) No. 17/11/PBI/2015 dated 25 June 2015 regarding Revision to PBI No regarding Conventional Banks Statutory Reserve Requirement in Rupiah and Foreign Currency. Page 17 of 25

18 Statements of Commitments and Contingencies As at 30 September 2015 and 31 December 2014 (in million Rupiah) NO. ACCOUNTS BANK DANAMON KONSOLIDASIAN 30 Sep Dec Sep Dec 2014 I COMMITMENT RECEIVABLES 1. Unused borrowing facilities a. Rupiah b. Foreign currencies Outstanding buying of spot and derivative contract 2,684,268 6,939,124 2,684,268 6,939, Others II COMMITMENT PAYABLES 1. Unused loans facilities granted to debtors a. BUMN i. Committed - Rupiah Foreign currencies ii. Uncommitted - Rupiah 50,000 49,727 50,000 49,727 - Foreign currencies b. Others i. Committed 347, , , ,494 ii. Uncommitted 36,947,047 39,657,668 36,947,047 39,657, Unused loan facilities granted to other banks a. Committed i. Rupiah 10,083 14,436 10,083 14,436 ii. Foreign currencies b. Uncommitted i. Rupiah 222, , , ,833 ii. Foreign currencies Outstanding Irrevocable L/C a. Offshore L/C 1,571,804 2,242,068 1,571,804 2,242,068 b. Local L/C 710, , , , Outstanding selling of spot and derivative contract 5,499,756 3,090,535 5,499,756 3,090, Others III. CONTINGENT RECEIVABLES 1. Guarantees received a. Rupiah b. Foreign currencies 138, , , , Interest receivables on non performing assets a. Loan interest income 465, , , ,432 b. Other interest Others IV. CONTINGENT PAYABLES 1. Guarantees issued a. Rupiah 2,888,905 2,910,891 2,888,905 2,910,891 b. Foreign currencies 612, , , , Others Page 18 of 25

19 Asset Quality and Other Information As at 30 September 2015 and 2014 (in million Rupiah) 30 Sep Sep 2014 NO. ACCOUNTS Special Current Mention Substandard Doubtful Loss Total Current Special Mention Substandard Doubtful Loss Total I. RELATED PARTIES 1. Placements with other banks a. Rupiah 497, ,524 84, ,149 b. Foreign currencies 208, , , , Spot and derivative receivables a. Rupiah b. Foreign currencies Marketable securities a. Rupiah 68, ,257 70, ,996 b. Foreign currencies 14, , Securities sold under repurchase agreements (repo) a. Rupiah b. Foreign currencies Securities purchased under resale agreements (reverse repo) a. Rupiah b. Foreign currencies Acceptance receivables 1, , Loans a. Debtor micro, small and medium i. Rupiah ii. Foreign currencies b. Non debtor micro, small and medium i. Rupiah 232, ,614 26, ,057 ii. Foreign currencies c. Restructured Loans i. Rupiah i. Foreign currencies d. Properties loan 15, ,394 22, , Investments 2,645, ,645,312 2,645, ,645, Temporary equity investment Others receivables Commitments and contingencies to third parties a. Rupiah 905, ,099 1,221, ,221,956 b. Foreign currencies Idle properties Foreclosed assets Suspense accounts II. NON RELATED PARTIES 1. Placements with other banks a. Rupiah 1,922, ,922, , ,798 b. Foreign currencies 6,964, ,964,345 7,281, ,281, Spot and derivative receivables a. Rupiah 387, , , ,007 b. Foreign currencies 21, ,542 45, , Marketable securities a. Rupiah 8,999, ,999,402 11,074, ,000 11,094,545 b. Foreign currencies 3,350, ,350, , , Securities sold under repurchase agreements (repo) a. Rupiah 195, , , ,603 b. Foreign currencies Securities purchased under resale agreements (reverse repo) a. Rupiah , ,742 b. Foreign currencies Acceptance receivables 6,510, ,510,345 5,687,304 49, ,736, Loans a. Debtor micro, small and medium i. Rupiah 26,067,060 2,117, , ,833 1,093,943 30,123,053 29,270,673 2,010, , , ,236 33,027,531 ii. Foreign currencies 263,855 29, , , ,914 5,075-3, ,632 b. Non debtor micro, small and medium i. Rupiah 57,839,886 5,300, , , ,498 64,300,900 56,308,979 4,369, , , ,669 61,402,010 ii. Foreign currencies 10,217, ,538 8, ,981 50,663 11,419,102 10,610, ,846 39, ,229 11,598,568 c. Restructured Loans i. Rupiah 1,077, , ,001 80, ,955 2,301, , , ,800 69, ,449 1,637,119 ii. Foreign currencies 226, ,460 8,294 62,921 46,829 1,259, , ,618 16,122-43, ,483 d. Properties loan 4,337, ,211 11,844 9,266 70,870 4,589,983 4,479, ,198 6,558 4,705 46,567 4,716, Investments 170, ,051 12, , Temporary equity investment Others receivables 11, ,210 29, , Commitments and contingencies to third parties a. Rupiah 33,901, , ,158,914 36,835, , ,987,658 b. Foreign currencies 8,261,917 34, ,296,220 13,969, , ,265, Idle properties ,397 16, ,289 16, Foreclosed assets Suspense accounts , ,512 III. OTHERS INFORMATION 1. Collateralised assets a. To Bank Indonesia - - b. To other parties Total Allowance for impairment losses on financial assets -/- 3,148,034 2,769, Minimum required allowance for possible losses on assets 3,346,509 2,930, Percentage of micro, small and medium enterprises credit to total loans 28.60% 31.32% 5. Percentage of micro and small enterprises credit to total loans 10.51% 12.75% 6. Percentage of micro, small and medium enterprises debtors to total debtors 9.68% 9.66% 7. Percentage of micro and small enterprises debtor to total debtors 7.89% 8.02% 8. Others - - a. Chanelling loans 350, ,638 b. Chanelling loans Mudharabah Muqayadah - - c. Written-off earning assets 2,503,796 1,791,932 d. Recovery on written-off earning assets 530, ,024 e. Charged-off earning assets 1,713, ,433 Page 19 of 25

20 Allowance for Impairment Losses As at 30 September 2015 and 2014 (in million Rupiah) 30 Sep Sep 2014 No. ACCOUNTS Impairment Loss Allowance Regulatory Loan Loss Provision Impairment Loss Allowance Regulatory Loan Loss Provision Individual Collective General Specific Individual Collective General Specific 1 Placements with other banks - 7,636 95, ,205 83,763-2 Spot and derivative receivables - - 4, ,574-3 Marketable securities , ,839 32,545 20,000 4 Securities sold under repurchase agreements (repo) Securities purchased under resale agreements (reverse repo) Acceptance receivables , ,873 2,460 7 Loans 662,569 2,477, ,937 2,088, ,450 2,327, ,336 1,659,908 8 Other receivables , Investments , , Temporary equity investment Commitments and contingencies ,781 14, ,942 21, ,569 2,485,466 1,226,169 2,103, ,627 2,355,929 1,208,901 1,704,313 Statement of Spot and Derivative Transactions As at 30 September 2015 (in million Rupiah) Purpose Derivative Receivables and Liabilities NO. TRANSACTION Notional Amount Trading Hedging Receivables Liabilities A. Related to exchange rate 1. Spot 641, , , Forward 2,579,775 2,579,775 14,552 43, Option a. Purchased b. Written Future Swap 4,480,088 3,747, , , , Others B. Related to interest rate Forward Option a. Purchased b. Written Future Swap 167, ,933 1, Others C. Others - - TOTAL 7,869,780 7,137, , , ,970 Page 20 of 25

21 Capital Adequacy Requirement As at 30 September 2015 and 2014 (in million Rupiah) DESCRIPTION 30 Sep 2015 *) 30 Sep 2014 Bank Consolidated Bank Consolidated I Core Capital (Tier 1) 25,797,597 30,142,092 24,020,406 28,647,798 1 Main Core Capital (CET 1) 25,797,597 30,142, Paid Up Capital (After deducted with Treasury Stock) 5,901,122 5,901, Disclosed reserves 23,870,102 27,978, Agio / Disagio 7,391,756 7,391, Donated capital General reserve 302, , Prior years' profit/loss that can be reckoned 14,565,390 18,377, Current year profit/loss that can be reckoned 1,738,759 1,894, Surplus from foreign currency translation Paid up capital fund Issued warran Issued share options on shares option compensation programs Other comprehensive income 69,865 28, Surplus of fixed assets revaluation Under provision between regulatory provision and impairment value on productive assets (181,619) Under provision between regulatory provision and impairment value on non productive assets (16,856) (16,856) Negative difference on fair value adjustment of financial instrument in trading book Minority interest which can be reckoned Deduction factor to core capital Deffered tax calculation (3,973,627) (3,737,815) (1,109,501) (1,122,455) Goodwill - (1,074,532) Other intangible assets (218,814) (281,929) Investment calculated as deduction factor (2,645,312) (1,258,899) Short of capital on insurance subsidiary company Capital securitisation exposure Other deduction factor to core capital Investment at AT1 and Tier 2 to other bank Additional Core Capital (AT-1) Instrument that qualified for AT Agio / Disagio Deduction Factor: Investment at AT1 and Tier 2 to other bank - - II Supplementary Capital (Tier 2) 1,226,169 1,411, ,114 1 Capital instrument in form of shares or others which are qualified Agio/ disagio from the issuance of supplementary capital instruments General allowance for possible losses on earning assets 1,226,169 1,411,867 (max. 1.25% of RWA Credit Risk) 4 Specific reserves Deduction Factor of Supplementary Capital Sinking Fund Investment at other banks tier 2 instruments - - Total Capital 27,023,766 31,553,959 24,020,406 29,537,912 * Effective January 2015, the Capital Adequacy Ratio (CAR) is prepared in accordance to PBI No.15/12/PBI/2013 dated 12 December 2013 regarding Capital Adequacy Ratio for Commercial Bank. Previously it was prepared in accordance to PBI No. 14/18/PBI/2012 dated 28 November Page 21 of 25

22 DESCRIPTION 30 Sep 2015 *) 30 Sep 2014 Bank Consolidated Bank Consolidated RISK WEIGHTED ASSET RWA CREDIT RISK 109,319, ,313, ,353, ,108,579 RWA MARKET RISK 392, , , ,150 RWA OPERATIONAL RISK 24,416,521 33,923,198 22,214,233 32,060,719 TOTAL RWA 134,128, ,630, ,979, ,584,448 DESCRIPTION 30 Sep 2015 *) 30 Sep 2014 Bank Consolidated Bank Consolidated CAR RATIO Main Core Capital (CET 1) Ratio 19.23% 18.20% Main Capital (Tier 1) Ratio 19.23% 18.20% 18.20% 17.41% Supplementary Capital (Tier 2) Ratio 0.91% 0.85% 0.00% 0.54% Total Ratio 20.15% 19.05% 18.20% 17.95% * Effective January 2015, the Capital Adequacy Ratio (CAR) is prepared in accordance to PBI No.15/12/PBI/2013 dated 12 December 2013 regarding Capital Adequacy Ratio for Commercial Bank. Previously it was prepared in accordance to PBI No. 14/18/PBI/2012 dated 28 November Page 22 of 25

23 Sharia Unit AS AT 30 SEPTEMBER 2015 AND 31 DECEMBER 2014 (In million Rupiah) NO. ACCOUNTS 30 Sep Dec 2014 ASSETS 1. Cash 9,847 15, Placements with Bank Indonesia 523, , Placements with other banks Marketable securities 50,000 95, Financing receivables *) 208, , Profit sharing financing 2,955,722 2,262, Leased financing 23,200 2, Other earning asset Allowance for impairment losses on earning asset (-/-) - - a. Individual (11,897) (11,962) b. Collective (52,034) (55,074) 10. Fixed assets and equipment 8,452 8, Non earning asset Allowance for impairment losses on other assets -/ Other assets 31,621 34,187 TOTAL ASSETS 3,747,497 2,897,518 LIABILITIES 1. Wadiah saving 266, , Non profit sharing investment funds 2,720,286 1,983, Liabilities to Bank Indonesia Liabilities to other bank 526, , Marketable securities issued Others liabilities 15,505 18, Profit sharing investment funds Working funds 161, , Accumulated gain/(loss) 56,570 7,216 TOTAL LIABILITIES 3,747,497 2,897, STATEMENTS OF INCOME FOR THE 9 MONTHS PERIOD ENDED 30 SEPTEMBER 2015 AND 2014 (In million Rupiah) NO. ACCOUNTS 30 Sep Sep 2014 OPERATING INCOME AND EXPENSE A. Operational Income dan Expense from distribution of fund 1. Income from Distribution of Fund a. Income from receivables 14,734 41,630 b. Income from profit sharing 241, ,021 c. Others 9,398 8, Margin distribution to owners of investment funds -/- a. Non Profit sharing 117,319 71,634 b. Profit sharing Income after margin distribution 148, ,368 B. Other Operating Income and Expense 1. Other Operating Income a. Income as mudharib in mudharabah muqayyadah - - b. Commision/Provision/Fees and administrative 1,385 2,096 c. Other income 39,477 14, Other Operating Expenses a. Wadiah bonus expense 2,487 2,124 b. Impairment losses on financial assets 44,326 12,523 c. Losses on operational risk d. Commision/Provision/Fees and administrative e. Impairment losses on other asset (non financial) - - f. Salaries and employee benefits 54,203 79,619 g. Other expenses 21,384 40, Other Operating Income (Expense) (82,143) (118,983) OPERATING INCOME (LOSS) 66,495 8,385 NON OPERATING INCOME AND EXPENSE 1. Gain/(loss) from sale of premisses and equipment Gain (loss) on foreign currencies translation 335 (70) 3. Income(expenses) non operating expenses (10,281) (4,798) NON OPERATING INCOME (LOSS) (9,925) (4,842) INCOME (LOSS) FOR THE PERIOD ENDED BEFORE TAX 56,570 3,543 Income tax - - INCOME (LOSS) FOR THE PERIOD ENDED NET OF TAX 56,570 3,543 Page 23 of 25

24 STATEMENTS OF COMMITMENTS AND CONTINGENCIES AS AT 30 SEPTEMBER 2015 AND 31 DECEMBER 2014 (In million Rupiah) NO. ACCOUNTS 30 Sep DeC 2014 I. CONTINGENT RECEIVABLES 1. Unused Financing facilities Outstanding buying of spot and forward contract Others - - II. COMMITMENT PAYABLES Unused Financing facilities 548, , Others 14,336 46,207 III. CONTINGENT RECEIVABLES Guarantees received Margin receivables on non performing assets 4,282 2, Others - - IV CONTINGENT PAYABLES Guarantees issued Others - - *) Total of Murabahah and Istishna financing exclude margin to be received of Rp. 59,620 million and Rp. 40,843 million as at 30 September 2015 and 30 September 2014, respectively. Table of Margin Distribution For the month of September 2015 (in million Rupiah) NO. Indicator Average balance Revenue to be distributed A. FINANCING 1. Bank 298,391 3, Non Bank 2,816,900 28,122 Nisbah (%) Depositor's portion Total bonus & Rate of return profit sharing indication (%) B. 1. FUNDING Wadiah current accounts a. Bank 6, b. Non Bank 315,732 2, Mudharabah current accounts a. Bank 13, b. Non Bank 196,973 1, Wadiah savings a. Bank - - b. Non Bank 2, Mudharabah savings a. Bank 17, b. Non Bank 263,521 2, Mudharabah deposits a. Bank - 1 month 347,834 2, , months months months 4, b. Non Bank - 1 month 1,787,413 14, , months 39, months 18, months 10, TOTAL 3,024,436 24,933 Page 24 of 25