Prime Finance consolidates upward momentum

Successfully accomplishing the challenge of overcoming the volatile economic condition prevailing in the country, Prime Finance PLC completed the second quarter of its financial year with remarkable progress, by adopting the most productively well-informed, optimistic and pragmatic strategic direction. 

Compared to the first quarter, the company has shown a commendable profit growth rate of 30% by 30 September, and half yearly profit before tax of 113 million. The Company has also shown an income growth of 30%, reaching nearly 300 million. The company was able to maintain its net interest margin at 11%, which is well above the industry average owing to its strategic diversification of portfolio, mainly into secured property mortgages with a healthy interest spread.

The Non-Performing Loan (NPL) ratio has systematically got reduced below the industry average as a consequence of focused Recovery Strategy and the measures adopted to improve the asset quality assessment by engaging a careful credit-evaluation process within the company’s strong Risk Management Framework.

The efficiency of the company is reflected through the drastic improvement in cost to income ratio. The company recently increased its capital base by way of a Rights issue to raise Rs. 864 million, and consequently reached the core capital of Rs. 1.5 billion, which is well above the present threshold of Rs. 1 billion stipulated by the Central Bank. With the enhanced capital structure, the company prides itself in winning customer confidence for a sustainable growth in the future. The company plans to further improve its capital base within the next two years thus strengthening its balance sheet up to a 2.5 billion capital base.

Prime Finance offers a range of financial products serving the needs of the SME sector and personal financial aspirations by being a ‘one stop shop’ for all financial needs – be it financing of a land, house/apartment, a vehicle or fixed deposits by empowering Sri Lankans to reach their multi-dimensional aspirations through the ‘Prime Group’.

Prime Finance recently marked a praiseworthy milestone – an investment grade credit rating of BBB – stable outlook by Icra Lanka Ltd. This was in recognition of the remarkable progress achieved during the recent past by implementing a sustainable business model.

Prime Finance CEO Rasika Kaluaarachchi remarked, “The business environment today is subject to rapid changes and therefore is very turbulent. So, being dynamic is about keeping pace in the ever-changing financial landscape and taking responsive action in order to meet emerging challenges successfully and surge ahead of the competition.” He added, “Our focus is strong and our strategies are aligned. Thus, we remain ready and committed to deliver ever-greater values to our stakeholders in a continuous and sustainable manner.” 

“By launching many strategic, operational and structural improvements, the Company was able to succeed and will now look forward for further consolidation in order to maintain steadfast progress into the future, whilst embracing the exciting economic challenges and opportunities that await us,” he said.

Prime Finance PLC is powered by the ‘Prime Group’, the largest conglomerate in the Real Estate/Residencies Industry, having over 20 years of service excellence, which is headed by its Group Chairman, B. Premalal who has been recognised as one of the 50 business personnel in Sri Lanka by LMD-2018. The Prime Group was awarded the ‘Best Property Developer in 2018’, and rated as one of the ‘25 Great Work Places in Sri Lanka 2018’ for the fourth consecutive year and selected as one of ‘Asia’s 100 Greatest Brands’.