by Elisa Valenta
The financing industry showed mixed performances during the first quarter due to the coronavirus pandemic. Some lenders booked a sluggish profit due to decreasing borrowers' capability to repay debts.
Automobile dealership company PT Tunas Ridean profit was down 22% to Rp125 billion, compared to the same period last year.
"Group’s profit in the first quarter of 2020 fell by 22% due to weakening contributions from automotive, financing and rental businesses,” says Rico Setiawan, executive director of Tunas Ridean in a statement.
Meanwhile, publicly listed financing company PT BFI Finance posted a slight decrease in net profit of 2.7% to Rp327.9 billion.
On the other hand, PT Astra International subsidiary, PT Federal International Finance (FIF), still managed to increase income. The company booked Rp2.6 trillion of profit, or jumped 11.29% from the same period last year.
"We saw growth in consumer financing demand during January and February. But, as the government enacted the large-scale social distancing policy, we see it's hard to achieve the target in consumer financing for the next quarter," says Margono.
The Financial Services Authority (OJK) have instructed financing firms to ease debtors' burden. Financing companies also allowed to restructure their debts with the same restructuring method used in the banking industry.