Bisnis.com, JAKARTA - Two finance companies (multi/leasing) are subsidiaries of PT Bank Mandiri (Persero) Tbk. (BMRI) appears to be back on track to become a significant financial contributor to the parent company.

As a reminder, PT Mandiri Utama Finance (MUF) and PT Mandiri Tunas Finance (MTF) had both lost money in the 2020 period due to the impact of the Covid-19 pandemic, but have started to be positive again in the 2021 period.

MUF's President Director Stanley Setia Atmadja is optimistic that it can grow even better in 2022, continuing the trend of MUF's net profit at the end of 2021, which skyrocketed to Rp102.36 billion, growing twice the normal period.

"This is because our after-tax profit in semester I/2022 has reached Rp90.9 billion, or grew by 173 percent [year-on-year/yoy] compared to semester I/2021. This also makes our RoE [return on equity] 27.1 percent according to the parent company publication," Stanley said when confirmed by Bisnis, Thursday (4/8/2022).

Stanley explained that the main driver of profit performance in this period was mainly the fruit of the performance of financing distribution which had reached Rp7.8 trillion as of June 2022, or grew by percent compared to semester I/2021 of Rp4.7 trillion.

According to Stanley, in the midst of negative sentiment in the financing business due to the phenomenon of limited stock of new vehicles, MUF was still able to maintain its performance because of the fruit of product diversity. Starting from used cars and motorcycles, multipurpose, to sharia financing.

"As a result, income from financing has increased quite well. So in the midst of the current challenges of limited stock of new vehicles, we are grateful that MUF is still able to maintain the value of financing distribution, thanks to various marketing channels and complete products," he added.

On the other hand, MTF has also returned to being a financial contributor for the parent company through profit performance which grew 178 percent yoy to Rp. 282.5 billion as of June 2022. The RoE ratio also reached 22.7 percent in the first semester of 2022.

Judging from the MTF, Bank Mandiri owns 51 percent with the automotive trading issuer PT Tunas Ridean Tbk. (TURI) of 49 percent, the profit contribution based on the portion of ownership for Bank Mandiri is remaining Rp. 144 billion.

MTF Sales & Distribution Director William Francis revealed that his party's new financing realization during the first semester of 2022 was recorded to have reached Rp12.8 trillion or grew 39 percent yoy from the same achievement last year of Rp9.2 trillion.

"As a result, currently MTF business continues to grow well. Mainly due to good macroeconomic conditions, demand for vehicle financing is also high," he told Bisnis.

According to William, in the midst of the shortage of semiconductor components for new vehicles which has a significant impact on its flagship business line, his party is still optimistic that it will be able to achieve its financing target of Rp. 24 trillion throughout the year.

Because, MTF sees that the financing of the new car segment of 'a million people' or types of cars that are in demand in the market can still be boosted, because manufacturers are trying to increase production capacity for the types of cars that enter this segment.

"Therefore, to attract consumers, we try to be flexible in offering products according to customer needs, for example through the strategy of providing low interest options, low down payments, and providing tenors according to customers' wishes," he added.