Abans Finance marks 3 years of profits with best ever Rs. 615 m in FY22

Wednesday, 8 June 2022 01:24 - - {{hitsCtrl.values.hits}}

Chairman K. J. Cecil Perera

Abans Finance PLC has marked three years of consistent profit growth with FY22 recording the highest ever Profit Before Tax of Rs. 615.2 million up from Rs. 427.1 million in FY21.

After tax profit amounted to Rs. 430.3 million as against Rs. 287.1 million in the previous year.

Total assets of the company exceeded Rs. 10.4 billion as at 31 March 2022.

Over the last three-year period, EPS also has improved significantly in a consistent manner where in the more recent FY22 it is recorded as Rs. 6.46, and on previous FY’s (2020/2021 and 2019/2020) it was recorded as Rs 4.31 and Rs 1.55 respectively. The National Long-Term Rating of Abans Finance is 'A-(lka)' RWN by Fitch Ratings Lanka Ltd.

Through the backing of the Abans Group and the strong management team lead by CEO Dharshan Silva, the company has been able to increase interest income, diversify portfolio risk, reduce funding cost, and improve collections.

The impressive FY22 performance comes amidst the aftermath impact from political, economic, social, and legal perspective to business operations from COVID-19 pandemic. During the past two years the company has successfully implemented concentric diversification in its products to regain the loss of top line and interest income, due to import bans of vehicles.

In terms of impairment charge of Rs. 131 in FY 2021 / 2022 it mainly includes an impact coming from Economic Factor Adjustment (EFA) in calculating the loss ratio. During the year the company was able to clear tax anomalies in previous years and cleared Rs. 319 million of contingent liabilities from the books thereby increasing the valuation of the company as well.

“FY 2021/2022 year was a challenging year to all our stakeholders. Despite all that dynamism in the market our team came together, to do their best to clients, which finally delivered an exceptional result to shareholders, and looking forward to continuing that record with a view to capitalise the opportunities ahead. Management believes that core to creating sustainable shareholder value in the longer term should be reached from a broad and diverse set of clients,” Abans Finance said.