BFIN Records New Financing Realization Grows 53.9 Percent, Largest Portion Of Car Loans

Rupiah (Photo: Doc. Antara)

PT BFI Finance Indonesia Tbk (BFIN) realized a new financing that grew 53.9 percent year on year (yoy) to IDR 6.3 trillion in the first quarter of 2023.

"Most of the financing portfolios based on their types of assets still come from financing four-wheeled vehicles, namely taking a portion of up to 67.5 percent with a managed receivables of IDR 15.2 trillion from a total of IDR 22.5 trillion," said BFI Finance Finance Director Sudjono quoting Antara.

In addition to financing four-wheeled vehicles, he continued the composition of other managed receivables including financing for heavy equipment and machinery at 12.8 percent, and financing for two-wheeled vehicles 12.5 percent.

The rest are property financing, sharia-based financing, and financing from subsidiaries which contribute 7.2 percent to receivables managed by the company.

With the growth in the realization of the new financing, BFI Finance posted revenues that grew 39.0 percent yoy to Rp1.6 trillion during the first quarter of 2023.

On the other hand, operating costs also recorded an increase of 46.8 percent yoy to Rp1.0 trillion, in line with the increase in company operational activities to support receivable growth over the past year.

Thus, in the first quarter of 2023, the company recorded a profit after tax which increased 28.5 percent yoy to reach IDR 508.8 billion, which is the achievement of net profit per the company's highest quarter.

"BFI Finance continues its positive trend in 2023, and we are optimistic that it can continue this trend while maintaining good asset quality and adequate reserves, while continuing the process of business transformation and risk mitigation through good governance," said Sudjono.

As of March 31, 2023, the ratio of non-performing financing (NPF) was observed to be low below 1 percent position, namely a gross level of 1.06 percent and a net of 0.43 percent with a preliminary coverage of 3.8 times.

Then, net financing receivables collected IDR 21.4 trillion, an increase of 45.0 percent compared to the first quarter of 2022.

To secure working capital needs during 2023, the company re-issued bonds as a source of funding, which is also supported by an increase in the company's bond rating issued by the PT Fitch Ratings Indonesia (Fitch) rating agency, from A+(idn) to AA-(idn) Stable Outlook.

Throughout 2023, BFI Finance has issued sustainable bonds twice with an emission value of IDR 2.7 trillion, due to the swift liquidity of domestic banking after being absent in the previous year. These bonds were respectively PUB V stage III of IDR 1.1 trillion and PUB V stage IV of IDR 1.6 trillion," said Sudjono.