Four External Factors Make BFI Finance Grow on Net Profit and Net Receivables

JAKARTA - Improvement of external factors in 2017 is able to contribute positively to the automotive financing. There were four external factors, each of which was a four-wheeled national vehicle that showed improvement over the previous year, improved banking liquidity and improved business conditions in the region of Sumatra and Kalimantan which previously experienced significant performance degradation.

These four external factors have also made PT BFI Finance Indonesia Tbk's (BFI Finance) positive performance for Q3/2017. The automotive finance net receivables increased 33 percent to Rp14.4 trillion. This growth is a continuation of the positive performance recorded by the company in the first and second quarters of 2017.

"In third quarter of 2017, BFI Finance successfully disbursed new financing Rp10.25 trillion, a growth of 34 percent over the same period the previous year valued at Rp7.7 trillion. The financing managed by the company (managed receivables) rose 18.5 percent to Rp15 trillion end of September 2017 compared to Rp12.64 trillion in the same period of the previous year," said Director of Business BFI Finance, Sutadi in Jakarta on Wednesday (2/11).

As a result, net receivables rose by 33 percent due to a decrease in joint-financing transactions that were off-balance-sheet. This increase, said Sutadi, is still supported by the performance of the financing of used and second wheeled vehicles used as the main contributor of new financing of 84 percent.

"The company is intensifying the implementation of a consistently implemented strategy for expanding its operational network especially in the Java Island, focusing on products that provide good margins, effective marketing programs and ongoing collaboration with business partners," Sutadi said.