ETI continues growth momentum

Thursday, 24 November 2011 00:00 - - {{hitsCtrl.values.hits}}

Edirisinghe Trust Investments (ETI) announced recently the company’s first half financial results for 2011/2012. The company’s revenue of Rs. 1.3 billion represented a 30% jump from Rs. 1 billion that the group earned during the same period last year.

The increase in revenue is testimony to ETI’s strong growth momentum, boosted by a buoyant economy and the company’s leadership position in the gold financing market.

The steady growth in income is due to the increased loan portfolio, which has increased by 11% from Rs. 8.3 billion in 2010/2011 to Rs. 9.2 billion in the period under review. This has in turn resulted in a profit before tax of Rs. 162 million up 145% from Rs. 66 million year-on-year.

The company’s three service lines showed admirable performance gains, fuelled by ETI’s flagship gold financing service arm. ETI has strengthened its position as the market leader in gold financing among finance companies.

ETI’s gold financing business is typified by the trust bestowed on the company due to its speedy, flexible and personalised service. In combination with the healthy economic climate, ETI’s confidence in gold financing will continue to fuel its growth momentum.

ETI’s gold financing advances increased from Rs. 7.1 billion to Rs. 8.8 billion which is an exceptional growth of 24% over the period under review. Gold financing income recorded as Rs. 986 million and it represented 76% of total income.

ETI’s credit loan disbursement in the half quarter of 2010 was Rs. 350 million and in 2011 it was Rs. 605 million, which is a 73% increase.

The financial results also showed ETI’s Non-Performing Loans (NPL) decrease to 5.17% from 5.78% year-on-year, well below the industry average of 6%.

ETI is one of the largest finance companies in Sri Lanka registered with the Central Bank of Sri Lanka. ETI serves a customer base over 550,000 recurring customers through 52 branches located strategically across the country.

The company’s service lines include gold financing, fixed deposits, leasing and hire purchase. Rated BB- by Fitch Ratings, the company is owned and operated by the Edirisinghe Group of Companies.