Federal profits jumps 32.6%
PT Federal International Finance, a motorcycle financing company controlled by Astra International, reported net profit of Rp812 billion last year, increased 32.6% from 2008 despite lower sales revenue of 3.7%.
FIF reported net sales revenue of Rp4.3 trillion or about US$458 million last year, declined 3.7% from 2008 on lower motorcycle sales nationwide. But the company managed to boost its profitability, most likely due to bigger gap between cost of funds and interest rates charged to motorists. Profit margin soared 38% to 12.9% last year.
The net profit of Rp812 billion represents ROE of 27.9%, increased 7.4% from 2008 and ROA of 8.9%. FIF had total asset of Rp9.13 trillion, declined slightly by 0.4% from 2008 with liabilities down 8.7% to Rp6.2 trillion.
For comparison, Adira Dinamika Multi Finance (ADMF), a subsidiary of Bank Danamon, reported sales revenue of Rp3.94 trillion, increased 16.6% from 2008, while net profit grew 18.8% to Rp1.21 trillion. Adira then reported ROE of 45.7% and profit margin of 30.8% last year. Thanks to the motorists who're willing to pay up to 42% interest per annum.