Nation Lanka Finance sustains turnaround and performance in 1H

Nation Lanka Finance said in a statement it has continued to sustain its strategic turnaround and performance in the first half of the financial year ending 30 September. 

Despite having to overcome challenging macro and micro economic conditions and several impairments that were carried over from the previous year, the company delivered a profit before tax of Rs. 162 million in the period under preview, and is well poised to deliver a strong operational financial performance in H2 of 2015/2016.

Maintaining its financial position in H1 of 2015/2016, the company recorded a gross interest income of Rs. 1.023 billion and a nett interest income of Rs. 613 million in the period under review. The company’s total assets remained relatively unchanged and were valued at Rs. 7.99 billion in H1 of 2015/2016. 

Total comprehensive income was recorded at Rs. 101 million and net assets were noted at Rs. 747 million. The total product portfolio stood at Rs. 5.6 billion with business loans and micro-finance loans being noted as the biggest contributors to the overall portfolio. The business loan portfolio stood at Rs. 3.05 billion, (55% of the total portfolio), whilst the micro-finance portfolio reached Rs. 2.09 billion, (38% of the total portfolio). Considerable growth was noted in the pawning portfolio, which stood at Rs. 259 million in the period under review. Given the results that the company has achieved in H1 of 2015/2016, Nation Lanka Finance remains well on track towards achieving its year-end financial targets.  

Commenting on the company’s performance, Nation Lanka Finance CEO Jayantha Perera stated the following: “I would like to take this opportunity to commend all of our team members for their efforts. Thanks to their enthusiasm and dedication we were able to sustain our progression despite various challenges. This year, we managed to consolidate many key areas of our service offering and during the period under review, we focused heavily on our customers’ needs and looked into their financial requirements in greater detail. 

“Going forward from January 2017, we shall continue to focus on customer care whilst concentrating on delivering strong product performances across our portfolio. In the short-term, we will be introducing a new product in the third financial quarter of 2015/2016, and in the long-term we are preparing to roll-out a new five-year plan in January 2017 that will enable us to drive business growth and deliver further on our promise of shareholder wealth maximisation. In order to raise additional funding for our ongoing business expansion, we are preparing for a subordinated debenture issue which will be launched to raise additional funding, which will be utilised in 2017.” 

Addressing some of the challenges of 2016, Perera advised that the necessary measures were put in place to address key concerns throughout the year. A rise in interest rates curtailed private sector lending, hence, the company tried to increase borrowing costs and was prudent in regards to lending. However, steps were taken to ensure that the entire burden did not fall on customers. The effects of Brexit also had various economic implications in Asia and the global market, creating a sense of uncertainty. The company was however pleased to note a positive shift in economic development in key regions across the country. 

In the period under review, Nation Lanka Finance also focused its efforts on building brand awareness by increasing the visibility of all branches throughout its network. This was done to ensure that the company would be able to draw attention to the Nation Lanka Finance brand and reach target segments as well as new and existing customers in high potential areas. The company also reiterated its commitment to good governance and compliance and has put further measures in place to ensure that all operations are conducted with transparency and in seamless alignment with all guidelines that are stipulated by key regulatory authorities.