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utomotive financing company PT Adira Dinamika Multi Finance (Adira Finance), a subsidiary of PT Bank Danamon Indonesia, will distribute to its shareholder dividends totaling Rp 1.05 trillion (US$64.46 million), about 50 percent of the company’s net profits in 2019.

The dividend payment was approved on Tuesday at Adira’s annual shareholders meeting in Jakarta, during which the shareholders also agreed on the appointment of new members of the company’s board of directors and board of commissioners.

Adira Finance shareholders will receive a dividend of Rp 1,054.5 per share, an increase of 16.13 percent from the previous year’s Rp 908 per share. Bank Danamon, which holds 92.07 percent of the firm’s shares with a total of 920.7 million shares, will receive Rp 970.88 billion.

The company will allocate Rp 21.1 billion, 1 percent of last year’s profits, as retained capital, which is in accordance with a law on limited liability companies stipulating that a company’s reserves must amount to a minimum of 20 percent of the company’s issued and paid-up capital.

“Our financing reached Rp 37.9 trillion in 2019, down by 1 percent from the figure recorded in the previous year,” Adira Finance president director Hafid Hadeli told reporters via a teleconference following the shareholders meeting. He said that business was “not very good for the multi-finance industry” last year.

The financing was mostly backed by credits provided for purchases of two-wheel vehicles, which made up 53 percent of the firm’s financing; credit for purchases of cars, which accounted for 41 percent; and credits for purchases of electronics devices, which made up 5 percent.

The publicly listed multi-finance company’s net profit grew 16 percent to Rp 2.1 trillion in 2019 from Rp 1.81 trillion in 2018, marking a slowdown in growth as the company recorded a 28.81 percent growth in net profit in the previous period.

The nonperforming financing (NPF) slightly improved to 1.6 percent last year, from an NPF of 1.7 percent the year prior.

Hafid noted that the NPF could increase this year due to the COVID-19 outbreak, but the company had yet to calculate the gravity of the impact as “the situation is still ongoing”.

“On managing new assets, of course, we will be more selective in the context of acquiring new customers,” Adira Finance finance director I Dewa Made Susila said during the teleconference on Tuesday when explaining the company’s strategy to curb NPF growth amid the pandemic.

Made added that customers who were economically affected by the health crisis would be included in a restructuring program, in line with the government’s plan to relax loan disbursement and restructuring requirements to stimulate the economy and create a safety net for people affected by the pandemic.

Hafid said the company was still preparing for the restructuration and was compiling data on its customers who needed help.

In the meeting, the shareholders agreed to appoint former Bank of Ayudhya executive vice president Congsin Congcar as a new member of its board of commissioners, replacing Willy Suwandi Dharma, who has been a board member of Adira Finance for around eight years. Willy was named president director in 2012 before being appointed a commissioner in 2017.

The shareholders also appointed Harry Latif and Jin Yoshida as members of the company’s board of directors. Prior to the appointment, Harry was the company’s chief of sales portfolio officer and Jin was a managing director at MUFG Union Bank, New York.

All of the board’s new members will start their roles after passing a Financial Services Authority confirmation hearing.

The shares of Adira Finance, listed on the Indonesia Stock Exchange (IDX) with the code ADMF, rose 2.4 percent to Rp 7,350 at the close of the morning trading session. The firm’s shares have fallen by about 30 percent year-to-date amid market rout in the past three weeks.