Bisnis.com, JAKARTA - The finance company PT Adira Dinamika Multi Finance Tbk. (Adira Finance) continued to record growth in the distribution of new financing in the third quarter of 2021 even though it was affected by a surge in Covid-19 cases and social restrictions. Read also: Adira Finance (ADMF) Welcomes the Era of Emission-Based PPnBM, The Impact Remains Positive This multifinance codenamed ADMF issuer managed to record a total new financing of Rp. 18.1 trillion as of September 2021, up 36 percent on an annual basis (year-on-year/yoy) . Adira Finance President Director Hafid Hadeli revealed that the main contribution of this distribution came from new car loan products which grew by 55 percent and new motorcycle loans by 34 percent. Hafid saw that this performance was the fruit of the rapid recovery of the national economy in line with the handling of the Volume-II pandemic which he said was fairly effective. "In fact, at Adira Finance itself, which nationally has nearly 20,000 employees, there have been zero cases. So the government's efforts and vaccinations are effective, and we hope that this condition will persist, although we are still vigilant," he said Friday (29/10/2021). This economic recovery is also reflected in the number of customers whose loans have been restructured as many as 831,000 contracts or around Rp. 19 trillion as of September 2021, around 85 percent have started paying their installment obligations. In the near future, Hafid assesses that the automotive sector, which has a major impact on the multi-finance industry, will be better off due to the incentive for the luxury onion tax (PPnBM) borne by the government which will last until the end of the year. Moreover, based on data from the automotive association, sales of new domestic cars and new motorcycles managed to grow by 69 percent (yoy) and 31 percent (yoy) to 628,000 units and 3.8 million units at the end of the third quarter of 2021. "I think it should be able to grow even higher. Because we heard that the automotive industry itself is being affected by supply delays, especially because of semiconductor or chip problems, so production cannot be full," he added. Adira Finance Director of Finance I Dewa Made Susila added that this financing position was still on track to achieve the new financing target at the close of 2021 of IDR 24 trillion-IDR 25 trillion. "Actually, growth traction was already in the middle of the year, but unfortunately there was another spike in the pandemic. It can be seen from our quarterly performance, each at Rp5.4 trillion in the first quarter, Rp6.4 trillion in the second quarter, then slightly down to Rp6.2 trillion. trillion in the third quarter. So until the end of the year we believe we can book new financing according to the target, "he said. Meanwhile, financing receivables managed by the company were recorded to still decline by 13 percent (yoy) to Rp39.9 trillion in September 2021 due to the portfolio rundown which was still not higher than the growth of new financing. From the financial side, ADMF posted interest income of Rp. 6.6 trillion, down 17 percent (yoy) compared to the same period last year, mainly due to a decrease in financing receivables. Meanwhile, interest expense decreased by 25 percent (yoy) to IDR 2.2 trillion in line with a decrease in the number of loans. As a result, net interest income decreased by 11 percent (yoy) to Rp4.2 trillion, while net interest margin increased to 13.1 percent from 12.1 percent in the previous year. The company's operating expenses increased by 3 percent (yoy) to Rp2.7 trillion, while the cost of credit decreased by 18 percent (yoy) to Rp1.1 trillion. The NPF ratio was recorded at 2.8 percent of receivables managed in September 2021, a decrease when compared to the first quarter of 2021 at 3.0 percent. Overall, the Company's net profit after tax was recorded at Rp753.3 billion or still experiencing a decline of 7.5 percent (yoy) compared to the same period last year. Finally, the company's Return on Assets (ROA) and Return on Equity (ROE) were recorded at 3.7 percent and 12.6 percent respectively in the first nine months of 2021.