BFIN A Full Year of Filings Later, Two Numbers Are Still Missing

A Record Year That Still Can't Answer Its Own Central Question

The FY2022 annual report was supposed to be the moment this backlog's longest-running disclosure gap got resolved one way or the other. H1 2022 dropped the restructuring cure rate and second-restructuring share without comment; 9M 2022 repeated the omission a second straight quarter. An annual filing has more room, more scrutiny, and more footnotes than either interim report - if there was ever a natural point to bring the disclosure back, or at least explain why it left, this was it. It didn't happen. The cure rate and second-restructuring share are absent from the FY2022 financial statements and investor presentation for a third consecutive filing, with the restructured pool itself now down to just 1.6% of managed receivables, from Q3's 2.9% - a fifth straight quarterly contraction with no cure-rate context attached to any of the last three.

The other open thread from Q3's post resolves more cleanly, and less favorably for the company's own framing. Of the 1,002,732,000 treasury shares cleared for disposal at the 29 June 2022 EGMS, only the smallest 75,000,000-share MESOP^» tranche ever moved - transferred on 11 October 2022, as already reported last quarter. The remaining 927,732,000 shares - 92.5% of the entire mandate, earmarked for sale to Trinugraha Capital or any third party, on or off the exchange - sat completely unmoved through 31 December 2022. Treasury stock at year-end is exactly 927,732,000 shares, identical to the balance three months earlier. Six months after an unconstrained mandate was approved specifically to remove the pricing friction that killed Q1's narrower attempt, the actual execution rate on the part of the mandate that matters is still zero.

Against that backdrop, the operating business had its best year yet: FY2022 booking hit Rp20,081 billion, up 52.7% year-over-year, with Q4 alone setting a fourth consecutive record quarter at Rp6,354 billion. Net income grew 59.7% to Rp1,806,679M. The tension this post has to hold is the same one this whole backlog keeps returning to - a lender compounding profitably through a book that keeps looking cleaner, disclosed by a company that keeps making that claim harder to verify.

The Prescription

An annual report is the last place a disclosure gap gets to look like an oversight. Two consecutive quarters without the cure rate and second-restructuring share could plausibly have been a formatting choice specific to interim filings. A third straight absence, this time in the one document of the year built for exactly this kind of detail, closes that possibility. The restructured pool has now shrunk from 10.2% of receivables at FY2021 to 1.6% today, across five straight quarters, with zero cure-rate disclosure for any of the last three - the one number that would settle whether that shrinkage is real recovery, write-offs, or aging-out has now had a full year to reappear and didn't. Publish it, or state plainly that it's been discontinued and why.

What the company should stop doing: treating an unconstrained six-month-old mandate as still "in progress" without saying so. Nothing in the annual report characterizes the 927,732,000-share disposal as behind schedule, stalled, or reconsidered - it simply isn't mentioned as incomplete anywhere outside the treasury-stock note's own share count. If BFI Finance no longer intends to sell that stock to Trinugraha or a third party, the market deserves that stated directly rather than left to infer it from a treasury balance that hasn't moved in two consecutive reporting periods.

Key Financial Metrics

Year ended 31 December 2022 vs. year ended 31 December 2021

FX: Rp15,620 = USD 1 (30 December 2022 month-end rate). Both periods below are converted at this same rate for comparability, following the convention used throughout this backlog - it is not a historical rate for the 2021 column.

Metric	FY2022 (IDR)	FY2022 (USD)	FY2021 (IDR)	YoY
Total Income ("Net Revenue" equivalent)	Rp5,383,010M	~$344.6M	Rp4,122,555M	✅ +30.6%
Profit Before Tax ("Operating Income" equivalent)	Rp2,238,681M	~$143.3M	Rp1,410,958M	✅ +58.7%
Net Income	Rp1,806,679M	~$115.7M	Rp1,131,338M	✅ +59.7%
Total Cash and Cash Equivalents	Rp1,073,255M	~$68.7M	Rp969,182M	✅ +10.7%

Profit before tax remains the closest operating-income equivalent for this lender, as established throughout this backlog. This is the first quarter since H1 2022 that a real cash flow statement is available - unlike the interim filings, the annual report includes a full statement of cash flows.

Operating cash flow swung sharply negative, to -Rp3,506,504M, with investing activities using a further Rp238,199M - reversing FY2021's positive operating cash flow. This is not a credit-quality signal: new financing disbursements (Rp23,346,729M paid out during the year) outran collections (Rp22,232,359M) because record bookings were funded largely in cash, with the resulting gap covered by a Rp3,848,776M net financing inflow (new borrowings of Rp10,327,231M against repayments of Rp5,892,868M combined securities/loan principal). A lender funding growth by drawing more debt is the ordinary mechanics of this business, not a red flag on its own - see debt-to-equity below for whether that growth is being financed at a level regulators or peers would consider aggressive.

Net income's +59.7% YoY growth is the strongest full-year reading in this backlog since the pandemic-recovery years, continuing 9M's +64.5% pace at a slightly gentler clip. Basic earnings per share reached Rp121 for FY2022, up from Rp76 a year earlier, on a weighted-average share count of 14,975,068,552 - marginally higher than FY2021's 14,964,383,620, reflecting the 75,000,000 MESOP shares that moved from treasury into general circulation partway through the year. An interim dividend of Rp28/share (Rp421,103M total) was paid on 22 December 2022 - up from the Rp17/share (split Rp7 interim + Rp10 final) distributed across December 2021 and July 2022.

Balance sheet metric	31 Dec 2022 (IDR)	31 Dec 2022 (USD)	31 Dec 2021 (IDR)	Change
Total Assets	Rp21,929,634M	~$1,404.2M	Rp15,635,739M	✅ +40.3%
Financing Receivables (gross)	Rp25,942,774M	~$1,660.9M	Rp18,126,473M	✅ +43.1%
Total Liabilities	Rp13,173,725M	~$843.4M	Rp8,205,513M	⚠️ +60.5%
Fund Borrowings (net)	Rp10,246,908M	~$656.0M	Rp4,789,422M	⚠️ +113.9%
Securities Issued (bonds, net)	Rp1,581,490M	~$101.2M	Rp2,487,483M	✅ -36.4%
Total Equity	Rp8,755,909M	~$560.6M	Rp7,430,226M	✅ +17.8%

Debt-to-equity^», on the same gross basis used throughout this backlog (fund borrowings plus securities issued, net, over total equity), rose to ~1.35x from Q3's ~1.20x - a fourth consecutive quarterly increase, still funding record bookings rather than signaling distress. This independently-computed figure now matches the "Gearing Ratio" disclosed in the financial statements' own OJK-mandated compliance-ratio note (Note 37) almost exactly, and - unlike the last two quarters - a debt-to-equity figure has reappeared in the investor presentation itself this quarter, disclosed as a 1.4x "Gearing Ratio" on a Comparison to Industry slide rather than restored to the Key Ratios slide it originally disappeared from. See Beyond the Usual below for why the relocation, not just the reappearance, is worth noting. The related-party PT United Tractors Tbk facility - flagged since Q1 2020 - was renewed rather than continuing to amortize down: a fresh agreement dated 21 June 2022 carries a larger Rp1,250,000M limit and pushes the maturity out from 27 December 2024 to 12 December 2025, with the drawn balance actually ticking up slightly to Rp407,100M from Rp393,322M at the prior year-end.

Key Operational Metrics

• New financing originations: Rp20,081 billion for FY2022, up 52.7% YoY from FY2021's Rp13,149 billion - Q4 alone hit Rp6,354 billion, up 22.2% QoQ from Q3's Rp5,198 billion and up 63.1% YoY, extending the record-booking streak this backlog has tracked since Q1 into a fourth consecutive record quarter.
• Managed receivables (including off-balance-sheet joint financing, per the deck): Rp20,498 billion, up 11.6% QoQ from Q3's Rp18,372 billion and up 40.7% YoY.
• Non-Performing Financing (NPF) (company's own disclosed figure^», gross basis): 1.00% at FY2022, down from 1.09% at Q3 2022 - a return to improvement after two quarters of minor upticks, and sharply better than 1.25% a year earlier. NPF coverage held at 4.1x, down slightly from Q3's 4.2x but still well above FY2021's implied level, while cost of credit improved to 0.8% for the full year from 1.6% in FY2021.
• Net Credit Loss (NCL) / Cost of Credit (CoC): 0.8% for FY2022 (annualized), down 75bps from FY2021's 1.6% - continuing the year's steady improvement from 9M's 0.79% cumulative reading.
• Net Interest Spread: 13.6% for FY2022, up from 11.9% a year earlier.
• Cost to Income: 46.5% for FY2022, an improvement from FY2021's 50.3%.
• Return on average assets (before tax): 12.2% for FY2022, up from 9.6% a year earlier.
• Return on average equity (after tax): 21.9% for FY2022, up from 16.2% a year earlier - the strongest full-year reading in this backlog.
• Earnings per share: Rp121 basic for FY2022, up from Rp76 a year earlier (see Key Financial Metrics above).

The seasonal pattern this backlog has tracked held again this year: Q4 is consistently BFI's strongest booking quarter (Rp6,354 billion this year, versus Rp3,895 billion, Rp2,166 billion, and Rp1,333 billion in the equivalent quarters of 2021, 2020, and 2019, respectively), reflecting year-end vehicle purchasing and dealer activity rather than a one-off surge specific to 2022.

Update on Loan Restructuring

• Restructured balance: Rp336,971M as of 31 December 2022, equal to 1.6% of total managed receivables - down again from Q3 2022's 2.9%, which was itself down from Q2's 4.5%, Q1's 6.9%, and FY2021's 10.2%. This is the fifth consecutive quarterly contraction in the pool.
• Absolute size: the restructured balance more than halved again in three months, from Rp524,959M at 30 September 2022 to Rp336,971M at 31 December 2022 - down 77.2% for the full year, from Rp1,479,787M at the start of 2022.
• Cure rate and second-restructuring share: still not disclosed, for a third consecutive filing. The last disclosed cure rate remains Q1 2022's 80.7% (its fourth straight quarterly decline at the time); the last disclosed second-restructuring share remains Q1's 18.0% (its fifth straight increase). See The Prescription above and Beyond the Usual below for why an annual report failing to restore this disclosure is a meaningfully different signal than an interim filing omitting it.
• Rescheduling program remains closed since August 2020 - every account still in restructuring is working through relief already granted in 2020, not new Covid-19 volume, per the same disclosure that has held throughout this backlog.

Three Segments, and Others Confirms Itself as the Structural Fastest-Grower

The company reports Cars, Motorcycles, and Others on a full fiscal-year basis, unchanged from every prior quarter in this backlog.

Cars - still the largest segment: Rp3,606,092M of income (67.0% of total, down from 69.2% a year earlier), with profit before tax up 51.4% YoY to Rp1,570,371M from Rp1,037,146M - margin (PBT/income) improved to 43.5% from 36.3%, and net profit up 52.4% to Rp1,267,334M from Rp831,608M.

Motorcycles - Rp1,132,752M of income (21.0% of total, up from 18.4%), with profit before tax up 70.0% YoY to Rp472,423M from Rp277,866M, margin improving to 41.7% from 36.6%, and net profit up 71.1% to Rp381,259M from Rp222,799M.

Others (heavy equipment/machinery, property, and sharia financing) - Rp644,166M of income (12.0% of total, down slightly from 12.4%), with profit before tax up 104.2% YoY to Rp195,887M from Rp95,946M - the fastest-growing segment for the fourth straight quarter in a row - and net profit up 105.5% to Rp158,086M from Rp76,931M. Margin expanded sharply to 30.4% from 18.8%, the widest margin gain of any segment. 9M's post called a third straight quarter of triple-digit profit growth confirmation that Others had stopped merely "recovering." A full fiscal year of that pattern - Others out-growing both larger segments on every profit measure for six straight quarters since its reversal was first flagged in Q2 2021 - makes it a structural feature of this business, not a low-base rebound. Its share of total income keeps drifting down even as its growth rate stays the fastest, which is arithmetic rather than tension: the smallest segment growing fastest in percentage terms doesn't require it to gain share against two much larger bases growing at 50-70% themselves.

Beyond the Usual

The cure rate has now gone missing across an entire annual report, not just two interim quarters

BFI disclosed a restructuring cure rate and second-restructuring share every quarter from the pandemic's start through Q1 2022, then dropped both starting with the H1 2022 filings. The FY2022 annual report - the one document of the year built for exactly this level of footnote detail - repeats the omission a third straight time, with no cure rate, no second-restructuring share, and no stated reason anywhere in the financial statements or investor presentation. The restructured pool has now shrunk for five consecutive quarters (10.2% at FY2021, then 6.9%, 4.5%, 2.9%, and now 1.6% of managed receivables), and an annual filing failing to restore a metric that survived every quarter of the pandemic itself is a stronger signal that this is a deliberate policy change than either interim omission was on its own.

Six months after approval, the entire 927,732,000-share treasury mandate remains at zero

The 29 June 2022 EGMS authorized disposing of BFI's entire 1,002,732,000-share treasury stock: 75,000,000 shares for the MESOP program, and 927,732,000 shares for sale on or off the exchange to Trinugraha Capital or any other party. The MESOP tranche executed on 11 October 2022, as already reported. The remaining 927,732,000 shares show an unchanged treasury balance between 30 September and 31 December 2022 - the entire broader mandate, not a partial fraction of it, is exactly where it was three months ago, six months after an unconstrained plan was approved specifically to remove the pricing friction that killed Q1's narrower attempt. Neither the annual report nor the presentation frames this as behind schedule or reconsidered - the mandate simply isn't mentioned outside its own share-count disclosure.

Debt-to-equity reappears in the presentation, but relocated to a slide a reader is less likely to check

The Key Ratios slide that dropped its debt-to-equity row starting with H1 2022 still doesn't carry one in FY2022's deck. But a "Gearing Ratio" of 1.4x does appear this quarter, for the first time since Q1, on a separate Comparison to Industry slide benchmarking BFI against sector averages - a context where a reader is scanning for competitive positioning, not checking the company's own leverage trend quarter over quarter. The financial statements themselves disclose two versions of the same underlying figure: Note 32's capital-management disclosure rounds it to 1.4x (matching the deck), while Note 37's OJK-mandated compliance-ratio table computes it more precisely at 1.35x - both using the same underlying debt and equity figures, just rounded differently. The number was never actually hidden in the audited statements (see Key Financial Metrics above); what changed is that it's now visible again in investor-facing material too, just not in the slide historically used to track it quarter to quarter.

Trinugraha's ownership percentage dropped, but only because the denominator moved, not its actual stake

Trinugraha Capital & Co SCA's disclosed shareholding is listed at 51.12% as of 31 December 2022, down from 51.38% at both 30 June and 30 September 2022. The absolute share count is completely unchanged at 7,688,125,938 shares. What moved is the denominator: total shares outstanding net of treasury rose from 14,964,383,620 to 15,039,383,620 - exactly the 75,000,000 MESOP shares that shifted from the treasury bucket into the "Others" ownership category during Q4. Trinugraha didn't sell or dilute its position; the shares used to calculate everyone's percentage simply grew by the same amount the treasury shrank. The prior year's other named substantial holder, DB SPORE DCS A/C NTAsian Discovery Master Fund (5.58% at FY2021 with 835,000,000 shares), no longer appears as a named line in the FY2022 shareholder table - it has either sold down below the 5% disclosure threshold or been folded into the "Others (each below 5%)" bucket, which isn't distinguishable from this filing alone.

The Bank Jago facility that replaced a never-drawn predecessor is now fully drawn

Flagged last quarter as a fresh Rp300,000M bilateral facility with PT Bank Jago Tbk, signed 22 September 2022 with a zero drawn balance eight days later - itself a replacement for a Rp600,000M-limit facility with the same bank that matured on 24 June 2022 having never been drawn at all - the new facility shows a fully drawn Rp300,000M balance as of 31 December 2022. Whatever kept the predecessor facility unused for its entire three-year life didn't recur here: within roughly three months of signing, BFI drew the entire limit. The separate Bank Jago joint-financing relationship and its Rp7,500M time deposit balance remain modest by comparison.

Target Valuation Range

Market cap ~Rp15,866,550M (~$1,015.8M) at ~8.78x FY2022 P/E and ~1.81x P/B - BFI is cheaper on both a trailing-earnings and book-value basis than it was three months ago - the stock fell further than earnings did, for the fourth straight quarter running.

Using 15,039,383,620 shares outstanding net of treasury (up from Q3's 14,964,383,620, reflecting the MESOP transfer) and the Rp1,055 closing price:

Market cap buildup	FY2022
Share price (period-end)	Rp1,055
Shares outstanding	15,039,383,620
Market capitalization	Rp15,866,550M (~$1,015.8M)
Book value (total equity)	Rp8,755,909M

Peer-multiple sanity check	Q3 2022 (TTM)	FY2022	Change
P/E	~10.46x	~8.78x	down - earnings grew 9.8% while the stock fell 8.3%
P/B	~2.00x	~1.81x	down

Market cap is down 7.8% from Q3's ~Rp17,209,041M. P/E uses full-year net income of Rp1,806,679M. Both multiples compressed as FY2022 net income grew 9.8% quarter-over-quarter against Q3's trailing-twelve-month base (Rp1,645,104M) while the stock fell 8.3% (Rp1,150 to Rp1,055) - the same earnings-outrunning-price pattern this backlog flagged in Q1, Q2, and Q3, now with the price actually declining rather than merely lagging a rising one. Stock price is like mood: it can change anytime, and what matters is how the business actually performs - and on every operating measure in this post, FY2022 was BFI's strongest year in this backlog's history.

Stock Price: A Second Straight Quarterly Decline Inside a Much Larger Two-Year Swing

BFI Finance shares closed at Rp1,055 on 30 December 2022, down 8.3% from Q3's Rp1,150 - a second consecutive quarterly decline after Q2's first drop in over a year, and now down 17.4% from April 2022's Rp1,285 high for the year. Over the trailing two-year window (January 2021 through December 2022), the stock ranged from Rp560 (December 2020) to Rp1,305 (January 2022), a 133.0% peak-to-trough swing - well past the >30-40% threshold applied throughout this backlog, though as with Q3, the underlying move happened well before this quarter's own price action. The stock has now given back roughly a fifth of its January 2022 peak even as the business it represents closed out its best fiscal year in this backlog's history.

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