Siyapatha Finance records outstanding financial performance in 2017

Siyapatha Finance, the largest subsidiary of the Sampath Bank Group, proudly announced the company’s 2017 year-end financial results recently. 

Siyapatha Finance has recorded an outstanding financial performance during the year, with promising results shown in all aspects of the business. Thus, it has secured a leading position in the financial services industry for the company.

Siyapatha Finance enjoyed an after-tax profit of Rs. 498.86 million with a recorded growth rate of 52% in comparison to the Rs. 327.28 million reported in 2016, as reported in the company’s financial results of 2017.

Under gross income, the company’s total interest income grew exponentially by 62% year on year to record an impressive Rs. 4.6 billion in 2017. This was made possible by the improvement in business volumes, which enabled the company to achieve significant strides in its business segments of leases and loans whilst managing risk and return at both product and business levels.

The growth in profitability was attributed to the significant increase in Net Interest Income (NII), Net Fee and Commission Income. The year on year growth in NII was 51% in 2017, generating a NII of Rs. 1.84 billion in comparison to the Rs. 1.22 billion gained during the previous year. Meanwhile, the increased profitability levels drove up the Return on Assets (ROA) to 1.91% and Return on Equity (ROE) to 23.05%, which was respectively 1.81% and 18.35% in 2016.  

In 2017, the company reached a significant milestone with the asset base reaching Rs. 29.81 billion. This reflects a growth of 43% over the year 2016 and a CAGR of 33% over the last five years. The company has significantly increased its lending portfolio, surpassing the industry growth averages which is noteworthy given the challenging business environment that prevailed in 2017.

Siyapatha Finance introduced loans to its product portfolio in the second half of 2016 and in the year under review, a net growth of Rs. 1.98 billion was achieved, marking an increase of 266%, which is a significant achievement within the second year of operations. 

Leasing/Hire purchase expanded by Rs. 5.4 billion, reflecting a 37% growth since 2016 with a total portfolio of Rs. 20.12 billion, while the Gold Financing portfolio stood at Rs. 2.56 billion, recording an augmented growth of Rs. 794 million (an increase of 45%). The contribution by Gold Financing remained at 9% against total advances. 

The importance of customer deposits in the compositional mix of total funding has increased to 36% from 19% in 2016. Deposits grew by Rs. 5.97 billion, recording a growth of 178% over the preceding year. This reflects the trust placed by the depositors in Siyapatha Finance. 2017 saw a significant improvement of 28% in shareholder funds. 

As of 31 December 2017, capital adequacy ratios are 9.44% for Tier 1 and 14.16% for Tier 1 and Tier II (Siyapatha Finance is well above the CBSL’s prescribed minimum thresholds of 5% and 10% respectively) The total capital adequacy ratio has increased to 14.16% from 13.93% in 2016, which was supported by the subordinated debentures of Rs. 1 billion issued to strengthen the capital base of the company.

Siyapatha Finance Chairman Channa Palansuriya, expressing his views on the financial results stated: “We are delighted by the significant improvements that our financial results have revealed and it is very encouraging to see all our hard work bear such fruit. The various changes and additions we have made have brought in extremely positive results and I am confident that Siyapatha Finance will continue to grow in numbers, innovation and customer service.” 

“We at Siyapatha Finance are extremely proud of our financial results for 2017. We are especially happy with the 178% growth of deposits and the noteworthy improvement of shareholder funds. These are testaments of the customer’s growing confidence in Siyapatha Finance. I have always believed that the success of our organisation is deeply rooted in our customers and our ability to serve them in the best possible way,” said Siyapatha Finance Managing Director Saman Herath. 

Siyapatha Finance offers a vast range of financial products including, fixed deposits, leasing, hire purchase, property loans, business loans, personal loans, factoring and gold loans. Siyapatha Finance operates with a fully-fledged branch network of 26 branches across the country for the convenience of customers.