JAKARTA. PT BFI Finance Tbk (BFIN), a consumer finance company with the largest market capitalization, posted a net profit of IDR 361.44 billion in the first quarter (Q1) of 2024.

BFIN's net profit in Q1 2024 fell 28.9% year-on-year (yoy) or from the same quarter last year. This decline was in line with the company's revenue which only reached IDR 1.55 trillion, 5.6% lower than Q1 2023.

Sudjono, Finance Director of BFIN, admitted that the economic movement in Q1 2024 was quite dynamic with a number of events ranging from the Presidential Election to Ramadan. This made the company more conservative in lending, to maintain asset quality and business fundamentals.

"This is in line with our efforts to undergo various adaptations to the latest financial systems and services," said Sudjono, in his official statement.

Please note, the prudent strategy has made BFIN's non-performing financing (NPF) ratio in Q1 2024 improve to 1.24% gross and 0.23% net. This is a far cry from the industry average NPF ratio of 2.55%.

The financing portfolio disbursed by BFIN in Q1 2024 was still dominated by the productive sector, to fulfill working capital. Meanwhile, investment financing was recorded at 20.1%, multipurpose financing at 18.7%, and sharia-based financing at 3%. (KR/LM)