Central Finance secures 1st place for 2Q in K Seeds Investments’ rankings

Tuesday, 1 December 2020 01:15 - - {{hitsCtrl.values.hits}}

K Seeds Investments has identified Central Finance Company PLC as the best performing finance company under the 1st category among the 31 listed finance companies in Sri Lanka through a ranking carried out based on their financial performance for the second quarter of 2020/21.

The report segregates the finance companies based on the size of their asset base, and ranks them in their respective categories among their peers based on ten financial metrics, which are calculated from the published quarterly financial statements. Central Finance Company PLC topped the overall spectrum by belonging to “Category 1” (asset base > Rs 100 billion). The Categories 2, 3 and 4 represent the companies having an asset base between Rs. 50-100 billion, 20-50 billion and less than 20 billion respectively.

The unfavourable macro-economic and market conditions caused by COVID-19 for the quarter under review from 1 July to 30 September created a significant impact on the financial health and status of finance companies as they have a significant exposure to higher risk individuals and institutions as compared to licensed commercial banks. However, despite all these factors Central Finance Company PLC topped the category 1 for 2Q 2020. The report ranks the finance companies according to their financial results released through interim reports on the Colombo Stock Exchange across 10 key performance indicators (KPIs) – cost/income ratio, return on equity, return on assets, net profit margin, net interest margin, impairment to loan book, credit to deposits, operating leverage, net profit growth and loan growth. These 10 KPIs are weighted equally, and an overall ranking is arrived at based on the aggregate score for each category.

K Seeds Investments is a boutique investment banking firm, specialising in mergers and acquisitions, balance sheet structuring, equity/debt placements, treasury management, corporate restructuring and talent management.