Abans Finance profit surges 130% to Rs. 63.6 m in 1H of FY2021

Monday, 23 November 2020 01:23 - - {{hitsCtrl.values.hits}}

Abans Finance PLC, a member of the Abans Group, has recorded yet another solid performance during the 1H of FY 20/21 amidst the challenging economic landscape.

In a statement Abans Finance said the company registered a net profit after tax of Rs. 63.6 million for the 1H of FY 20/21 period ended 31 September 2020, compared to Rs. 27.7 million recorded in the corresponding year, achieving a YoY growth of 130%.

“The performance is attributable to the company’s technology driven recovery and lending practices, which were more resilient during the COVID-19 period, and improved cost efficiencies implemented across the organisation,” the statement added.

Abans Finance PLC granted debt moratoriums to customers for the period commencing from April 2020 to 30 September 2020 to meet the recommended debt relief scheme of the Central Bank of Sri Lanka in a bid to support the recovery of the economy.

While the threat of COVID-19 remains at large in Sri Lanka, the company has taken steps to strengthen its resilience through strategic diversification of the lending portfolio and maintaining a healthy liquidity position. Despite the economic turbulence and the COVID-19 pandemic, the company has re-strategized its activities to be in line to record a higher net profit in 20/21 compared to the previous financial year.

Having a diversified lending portfolio as well as a robust liquidity position aided the performance. Abans Finance PLC had a Risk Weighted Capital Adequacy Ratio above the Central Bank of Sri Lanka requirement, which reflects the stability of the Company. Furthermore, Fitch Rating reaffirmed Abans Finance PLC’s National Long-Term Rating at ‘BB+ (lka)’.

Backing of the parent company further supplements the stability of Abans Finance PLC. Abans Group – as a leading Sri Lankan conglomerate – has an annual net revenue of over Rs. 35 billion.

Since 1968, Abans Group’s sphere of influence has been growing and far-reaching, extending to every corner of Sri Lanka. More recently, Fitch Rating reaffirmed Abans Group’s National Long-Term Rating at ‘BBB+ (lka)’ reflecting the stability and the stature the Group has earned in the market.