BMRI - Mandiri Utama Finance (MUF) distributes car financing IDR11.8 tn

BMRI - Mandiri Utama Finance (MUF) distributes car financing IDR11.8 tn Mandiri Utama Finance (MUF) reported a positive trend in car financing distribution until August 2024. The company has met 70.66% of its target this year. MUF Main Director, Stanley Setia Atmadja, stated that by August 2024, car financing reached IDR11.8 tn. This figure rose 12.6% yoy. He explained that this growth performance was maintained thanks to optimal organizational performance and the right strategy to reach new markets. Apart from that, increasingly close financing cooperation with Bank Mandiri and BSI also encourages healthy business performance growth. Stanley said that by the end of 2024, MUF targets to be able to distribute car financing of IDR16.7 tn. He is optimistic that this target can be achieved as the company continues to implement a number of strategies. The strategies implemented by MUF to achieve targets include maximizing a number of strategic steps, such as developing office network permits, strengthening and expanding cooperation with dealer partners, showrooms and partners. Comment : We expect car financing growth will continue solid in 2H24 and thus will bring positive impact to BMRI. Despite there will be a lag on lower benchmark rate transmission to bank / multifinance loan yield, we believe the latest Fed and 7DRR rate cut will boost short term confidence. Various promotion, special discount, 0% interest rate and longer installment period will continue become the industry catalyst.