The Finance suffers near Rs. 1 billion quarterly loss, retained loss now Rs. 24 b

Troubled The Finance Co. PLC (TFC) suffered a near Rs. 1 billion loss during the quarter ended on 30 September, bringing the cumulative retained loss to Rs. 24 billion.

As per the latest interim results, net loss of TFC was Rs. 923.35 million for three months ended on 30 September, close to double the figure of Rs. 544 million suffered in the corresponding period of the previous financial year. 

The previous biggest quarterly loss was Rs. 1.3 billion suffered during January to March 2016.

Loss for the first six months of FY19 was Rs. 1.66 billion, up from Rs. 1.08 billion from a year earlier.

Retained loss as at 30 September was Rs. 23.96 billion, up from Rs. 22.3 billion as at 31 March. Apart from taking public deposits, TFC’s interests include real estate, investment properties, treasury, and investment shares.

Gross income in 2Q was down by 6% to Rs. 835.7 million. Interest income in 2Q was Rs. 1.08 billion, up by 31% whilst interest expense amounted to Rs. 1.29 billion, as against Rs. 1 billion a year earlier. Net interest expense was Rs. 207.3 million, down from Rs. 237 million in 2Q of FY17. Net fees and commission income had declined from Rs. 23.7 million to Rs. 5.2 million. Total operating loss was Rs. 461.4 million after a Rs. 285 million loss on pre-matured refund was included. Operating loss in 1Q of FY17 was Rs. 181 million. 

Impairment charge for loans and other losses doubled to Rs. 224 million in 2Q. Net operating expenses had risen from Rs. 292 million to Rs. 685.5 million. TFC had managed to reduce operating expenses marginally from Rs. 252 million to Rs. 238 million in 2Q.

During the quarter, TFC had settled Rs. 4.2 billion of CBSL debt through pre-matured Government Treasury Bond. It included Rs. 285 million loss on pre-matured refund under the ‘Other’ operating income.

In 1H, gross income was Rs. 1.64 billion, down from Rs. 1.75 billion a year earlier. Total operating loss grew to Rs. 755.4 million from Rs. 329 million. After Rs. 425 million impairment charge for loans and other losses, net operating expenses amounted to Rs. 1.18 billion as against Rs. 564.5 million in 1H of FY17.

As at 30 September, TFC’s total assets amounted to Rs. 16 billion, down from Rs. 23.5 billion as at 31 March. Liabilities had reduced from Rs. 38 billion to Rs. 32 billion. Deposits from customers amounted to Rs. 28.6 billion, down from Rs. 30.4 billion as at 31 March. Net asset value per share was a negative Rs. 100.64, compared with Rs. 90.24 as at 31 March.