President director Willy Suwandi Dharma told reporters on Friday that the increase had been driven by the company’s diversification of fund sources, which led to a 13 percent decrease in interest expenses to Rp 1.1 trillion from Rp 1.2 trillion.

“However, there was a slight increase in operation expenses due to increases in salaries and benefits, which caused the company’s cost-to-income ratio to decline to 48.4 percent from 50.1 percent,” he said.

Willy said that in the first quarter, his company disbursed new loans worth Rp 7.3 trillion, making the company’s total managed receivable financing stand at Rp 43.8 trillion as of March.

The company’s marketing director, Hafid Hadeli, said that Rp 4 trillion (55 percent) of the new financing was channeled for the purchases of motorcycles, Rp 3.1 trillion (42 percent) for cars and the other Rp 185 billion (3 percent) for household goods.

“The main growth driver in our financing disbursement was car portfolio, which grew by 8 percent,” Hafid said.

Adira Finance’s shares in the motorcycle financing market reached 10.2 percent and the car financing market 3.8 percent.

Popular

Why Indonesia must write ASEAN’s green rules

Freeport Indonesia pushes back full copper mine restart

Growth without gain: Why Indonesians don't feel the economy