Conference Call Key Takeaways - Mandiri Sekuritas
We held a conference call with BFIN’s CFO and IR, discussing 2H20 expectations on financing demand, restructured receivables, loss on asset repossession, and credit cost. Business is slowly recovering after the worst time in 2Q20. With more writeoffs, expect NPF of 3% by yearend with credit cost estimated at 5%.
Higher financing demand in Aug-20.
The company has seen higher new financing booking of more than +50% MoM in Aug-20, and it expects the growing trend to continue in the following months. BFIN will mainly target the bigger ticket-size financing for now, given that the lower ticket-size financing (i.e. on motorcycle) has been heavily impacted by the pandemic, and it’s more difficult to repossess the assets at times like this. However, the company is not aiming to grow the business and is mainly trying to maintain its market presence. It has implemented stricter criteria for new customers, wherein credit approval will be given to those with good capacity rather than good collateral value. The company has no intention to participate in the 0% down payment recently introduced by the central bank for finance companies with less than 5% non-performing financing.
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