Adira’s profit up 20 percent in 2013

JAKARTA. Publicly listed PT Adira Dinamika Multi Finance, a subsidiary of lender Bank Danamon, reported a 20 percent year-on-year (y-o-y) increase in its net income in 2013 despite a number of challenges.

It says it is hoping to set a steady growth rate this year with the help of the country’s growing automotive sales.

According to a written statement made available on Thursday evening, Adira generated Rp 1.7 trillion (US$140.59 billion) in profits throughout last year, a 20 percent increase from Rp 1.4 trillion in the previous year.

The financing company earned a total revenue of Rp 8.06 trillion last year, a 19.41 percent increase compared to Rp 6.75 trillion in 2012. 

Its operating profit saw a y-o-y 14 percent increase, to Rp 6 trillion last year, from the year before.

The company’s new financing went up by 4 percent to Rp 33.7 trillion last year, compared to Rp 32.4 trillion in the previous year. 

Its consumer financing receivables recorded a y-o-y 5 percent increase, to Rp 48.3 trillion in 2013, from the previous year.

“We are happy to report that our financing can still grow despite tightening competition, thanks to our diversification strategy to provide loans for both secondhand and new motorcycles and cars,” Adira financing and marketing director Hafid Hadeli said.

Adira president director Willy Suwandi Dharma said the company was fortunate to manage healthy growth in a challenging year throughout 2013.

Willy cited a regulation stipulating minimum down payments for Islamic financing and Bank Indonesia’s move to raise the benchmark interest rate by 175 basis points (bps) as challenges that further affected the company’s financing costs last year. 

He said that rupiah depreciation and fuel price hikes brought other challenges as the two issues led to consumers’ deflating purchasing power.

“We focused on internal factors by optimizing our infrastructure and carrying out operational efficiency in facing such challenges,” he said.

The company, he said, then managed to reduce its cost-to-income ratio to 42.1 percent in 2013 from a previous 45.6 percent in 2012. 

Its nonperforming loans (NPLs) also went down to 1.3 percent last year, compared to 1.4 percent in the previous year.

As of 2013, Adira operated 669 networks across the nation, with around 3.7 million consumers.

Willy said that the company aimed to see its new financing rise by 8 percent to 10 percent this year, supported by the expected steady growth of vehicle sales as forecast by automotive industry players.

The Association of Indonesian Automotive Manufacturers (Gaikindo), for instance, has predicted that car sales will increase to 1.3 million in 2014, up from 1.23 million last year.

Annual car sales rose by 9.8 percent last year, from 1.12 million recorded in 2012.

Besides Adira, PT Bank Internasional Indonesia’s (BII) vehicle financing units also scored significant profit growth in 2013.

Its car financing wing PT BII Finance booked Rp 208.23 billion in profits last year, up by almost 36 percent compared to Rp 153.14 billion in 2012, according to its latest financial report.

BII Finance’s y-o-y revenue grew by 44.4 percent to reach Rp 890.71 billion last year, compared to Rp 616.80 billion in the preceding year.

The annual report of PT WOM Finance, BII’s motorcycle financing unit, also shows a significant increase in its profits, which more than tripled from Rp 28.12 billion in 2012 to Rp 89.26 billion last year. (Anggi M. Lubis)