Dear Esteemed Shareholders,
We would like to first express our gratitude to the God Almighty as CNAF was still able to record positive business growth amidst the various challenges in 2016. As we all experienced, the economic and industry conditions in 2016 was unfavorable, however Indonesia was still able to maintain national growth at 5.02%. Such economic condition affected the performance of the motor vehicle industry – although the car sales increased by 16.19% to 1,177,389 units in 2016, such number has not reached the targeted sales of over 1,200,000 units.
On the other hand, the performance of the financing industry was relatively positive with a total consumer financing increase of 6.25% to Rp387.51 trillion in December 2016 compared to the same period in the previous year. Whereas the total assets also increased from Rp425.71 trillion in 2015 to Rp442.77 trillion in 2016. However, the economic condition adversely affected consumer financing assets quality where Non-Performing Financing declined to 3.26% in 2016 (2015:1.49%). In response of the above conditions and to ensure the sustainable healthy portfolio in the near- and long
term, the Managament has proactively determined new strategy to overcome both internal and external challenges. With this new strategy, CNAF was able to close 2016 on a positive note.