JAKARTA: PT CIMB Niaga Auto Finance's new loans tripled in the first quarter this year as purchasing power rose on the back of an economic condition that is conducive to growth, President Director Frengkie Natawijaya said.The finance company booked IDR1.5 trillion rupiah in new loans in the January-March period this year, compared to IDR500 billion in the year earlier period.Financing industry in the four wheel segment is growing fast, he told Bisnis over the weekend. The companys non-performing loans increased to 0.5% at the end of the first quarter, from 0.4% at the end of last year due to the lower number of working days in February.However, the financing company management remains optimistic such condition will improve since it applies a relatively strict down payment policy of around 20%.Thus, the company, controlled by PT Bank CIMB Niaga Tbk, has a maintained credit quality with key market target in the upper middle class segment.Currently, the company has protected its financing by applying fiduciary agreement for each contract, which creates more sense of security both for CNAF and its customers. The fiduciary contract is included in the financing fee.IDR7 trillion targetFrengkie said the IDR1.5 trillion new financing in first quarter will contribute to this year's new financing target of IDR7 trillion. Its target increased by 75% from IDR4 trillion financing last year.The company has obtained capital and loan commitment from its parent company CIMB Niaga as the funding source to achieve the financing target.According to him, the publicly-listed private bank has committed to fulfilling 90% of total funding requirements for the companys financing distribution.Most of CNAF financing is distributed through joint financing with banks that channel the funds. Its usually 10% from us and 90% from a bank, Frengkie said.The company is not worried about the potential decline in the supply of the Japanese brand cars that may still happen due to disruptions caused by the impact of the recent tsunami.CNAF is optimistic the delayed delivery of four wheel cars supply can return to normal in the third quarter. In order to contend the condition that occurred in the beginning of second quarter 2011, the company has been enlarging financing portion of used car between 2%-3% compared to its initial portion.Financing portion between new car and used car segment usually is between 75%-25%. Now, the split is temporary at 72% and 28%. (t06/msw)

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