Orient Finance doubles 1H revenue to Rs. 1.5 b

Tuesday, 6 December 2016 00:10 - - {{hitsCtrl.values.hits}}

Orient Finance PLC, reaping it post-merger synergies, has increased its total income by 76.5%, recording Rs. 1.5 billion for the first six months ended 30 September 2016.

This has been achieved amidst stiff macro-economic and fiscal constrains such as LTV ratio of 70% and increasing funding costs.The total income for the quarter ended 30September2016 has also increased from Rs. 646 million to Rs. 816 million,recording a 26% increase over the same period of the previous year.

Interest income has risen by 78.5%, while interest expense has increased by 86.6%,thereby recording Rs. 591 million net interest incomes. It is a 68.3% increase over the corresponding period of the previous year.

Orient Finance PLC., is a subsidiary of Janashakthi PLC, and is the result of the merger of former Bartleet Finance PLC, and former Orient Finance PLC, in July 2015. After the merger, its business centers have expanded to 31 locations,providing island-wide access to its diverse customer base.

Orient celebrated its 35th anniversary in July this year and continues to embark on its main business activities, namely, leasing, fixed deposits, factoring and pawning. Its business is focused on the SME Sector and provides facilities to finance income generating assets; self-employed individuals to medium size corporates for their working capital and capital investments. Orient re-launched its pawning business during the year, which is progressing well.

Profit before tax for the six months period ended 30September2016 rose by 127% while PBT for the quarter ended 30 September2016 declined by 28.7% due to the rising funding cost. Profit after tax showed a decline for both the six months period and the quarter, since there was a deferred tax gain on the investment tax relief, resulting from the merger during the previous year.

The total assets base of the company has reached to Rs. 18.5 billion as at date and the net loan book of the company improved to Rs. 15.5 billion.

Chief Executive OfficerMayura Fernando said that the company has achieved satisfactory results amidst tight macro-economicconditions andthe said measures are being taken to further improve customer service and process efficiency in order to improve the market share and obtain resultant benefits to the Company.

The Board of Directors of the company areChairman Dr. D. C. Jayasuriya PC, Directors PrakashSchaffter, AnandaAtukorala, L. K. Gunatilake, Anil Tittawella PC, Minette Perera andIndraniGoonesekera.