Banking - MUF disburses new car financing of IDR8.2 tn in Oct24

Banking - MUF disburses new car financing of IDR8.2 tn in Oct24 Mandiri Utama Finance (MUF) reported that the disbursement of financing for new cars reached IDR8.2 tn in October 2024. Financing for new cars still constitutes the largest contribution to the company's total financing disbursement. MUF's President Director, Stanley Setia, stated that financing for new cars contributed 47% to the total financing distribution. This figure increased by 28% yoy in October 2024. Meanwhile, the outstanding financing receivables managed by MUF until October 2024 have reached IDR34.1 tn, or an increase of 15.4% yoy," said Stanley to Kontan, Monday (11/11). MUF recorded a total financing disbursement of Mandiri Utama Finance worth IDR17.6 tn, which also experienced an increase of 6.1% yoy in October 2024. Stanley said that MUF continues to collaborate with various stakeholders, such as dealers, showrooms, partners, and banks including Bank Mandiri and Bank BSI to distribute financing through the company's comprehensive product portfolio. Furthermore, one of the company's biggest programs this year is collaborating with the Indonesian Automotive Industry Association (Gaikindo) to hold the Mandiri Utama Finance Gaikindo Jakarta Auto Week (MUF GJAW) 2024 from November 22 to December 1, 2024, which will be attended by more than 80 automotive brands. "Through this event, MUF not only encourages the growth of financing but also contributes to boosting national automotive sales by the end of 2024," he said. (Source : Kontan) Comment : We believe that financing companies will continue to contribute to the sustained double-digit growth of the banking industry's consumer segment and overall loan portfolio next year. Despite a recent slowdown in four-wheel vehicle sales, we expect a recovery in monthly sales in 2025, driven by ongoing promotions, government subsidies for electric vehicles, a lower interest rate environment, and longer credit tenors. These factors are expected to act as key growth catalysts for the sector. Based on these positive factors, we maintain our overweight stance on the banking sector. Our top picks include Bank Central Asia (BBCA), Bank Mandiri (BMRI), and Bank Rakyat Indonesia Syariah (BRIS) for the Islamic banking segment.