Sinhaputhra Finance records 36% profit increase while industry ROE falls by 50%
Thursday, 8 August 2013 00:00
Cautioned by 34 years of financial experience, Sinhaputhra grew slower than the industry stock growth of 23.1% vs. 15.27%. While for the industry, it was a fall of 36% from the growth rate of the year before, for Sinhaputhra, it was a relatively lower fall of 21%, reflecting the general fall in stock growth of the industry.
An in-house recovery team was deployed 3-5 days of the week in the field with motorcycles and tablet PCs and gave the recovery an edge and marketing a solid new clientele.
The profits of Rs. 72 million versus 52 million reported last year were calculated under the new Sri Lanka Financial Reporting Standards (SLFRS) which reflect a more current and futuristic balance sheet, and differed in favour of the company by only 1.8% versus the traditional accounting standards.
Total equity now surpasses Rs. 826 million, strongly backed a selective depositor pool of Rs. 4 billion, and was canvassed by word of mouth and seldom by any advertising. Sinhaputhra gears all its energy towards customer service and believes that it is the best mode of advertising.
Sinhaputhra strayed far from unplanned micro loans which have seen signs of attracting multi loans thus raising red flags on final recovery of such accommodations.
Furthermore, there is a business mix of 32% and 29% in the areas of leasing and hire purchase. Loans, gold, vehicle imports, real estate etc. spread the risk widely, especially with a relatively low concentration on gold loans, which have come under stress due to the fall in prices.
Sinhaputhra Finance stands strong as the only non-Colombo based listed financial institution in the country and is keenly associated with the development of the Kandy city and community by its generous contributions and involvement in all spheres.
The company is monitored by the Department of Non Bank Supervision of the CBSL, has deposits insured to a limit under CBSL, is rated by RAM ratings, is listed on the CSE, and is audited by KPMG.