BFI Finance records 20.7% financing growth in Q1
JAKARTA - PT BFI Finance Indonesia Tbk (BFIN) recorded growth in new financing by 20.7% year on year (yoy) from Rp 3.4 trillion in the first quarter (Q1) of 2019 to Rp 4 trillion in Q1-2020.
The financing growth helped increase the company's Q1 revenue by 10.1% yoy to Rp 1.4 trillion. However, BFIN Finance Director and Corporate Secretary Sudjono said that the coronavirus (COVID-19) pandemic has prompted to the company to tighten financing disbursement in order to anticipate the economic impact of the pandemic going forward.
The company's profit, Mr Sudjono added, dropped 2.7% yoy to Rp 327.9 billion in Q1 as a result of its policy of reserving 70% of receivables to anticipate economic weakening that could trigger non-performing loans (NPLs). BFIN's NPL ratio and loss reserve were recorded at 3.55% of the company's productive assets. (ARM/AC/MS)