Swarnamahal Financial Services ups 1H pre-tax profit by 267% to Rs. 123 m

Wednesday, 9 November 2011 01:25 - - {{hitsCtrl.values.hits}}

Asset base sees healthy 45% growth to Rs. 4.5 b

Swarnamahal Financial Services Plc has achieved impressive all round performance in the first half of 2011/12 financial year reinforcing its progressive track record.

An EAP Edirisinghe Company, the Swarnamahal Financial Services Plc in the first six months ended on September 31, 2011 has continued with its growth momentum achieving a pre-tax profit of Rs. 123 million, up by an exponential 267% from Rs. 33 million posted in the corresponding period of last financial year.

After tax profit had grown by 134% to Rs. 76 million.

Chairperson Dr. Soma Edirisinghe, Deputy Chairman Jeewaka Edirisinghe, Director Nalaka Edirisinghe and senior officials of the Company at the opening of the Batticalo branch recently. — File Photo

The net income also drastically rose by 115% to Rs.239 million for the first six months of the year 2011/12 compared to the Rs.111million recorded in the previous year. In the fist six months of the year 2011/12, the Company’s turnover grew by 80% percent to Rs. 495 million compared to Rs. 275 million in the same period of the previous year. The cost to income ratio of the Company improved by 30.70% from 69.4% in September 2010 to 48.1% in September 2011. The net interest margin was also improved by 26.5% from 11.3% to 14.3% in September 2011.

The total asset base of the Company saw a healthy 45% growth from Rs.3, 095 million to Rs. 4,491 million as at 30th September 2011. The Deposit and the pawning advances portfolio grew by 45% and 79% respectively with compared to the corresponding period in the previous year.

Interest income from pawning advances indicates a phenomenal growth during the first six months of the year 2011, compare to the same period in the corresponding year while the Company continues to improve the quality of the credit portfolio by keeping the NPL ratio below the industry average. “The company has achieved this phenomenal growth due to the implementation of effective strategies and the rapid expansion of its branch network,” Swarnamahal Financial Services Plc Director Nalaka Edirisinghe said.

The Company is also fact growing its footprint countrywide and presently has enriched with seven fully fledged branches and ten Pawning Centres. Swarnamahal Financial Services Plc’s board is chaired and led by Dr. Soma Edirisinghe and Deputy Chairman is Jeewaka Edirisinghe. Other board members are Nalaka Edirisinghe, Deepa Edirisinghe, Asanka Edirisinghe, Sunil Abayaratna, Sameera Ganegoda, Guy De Silva, and Ajith Weerasinghe., Mahendra De Silva. The Company is registered by the Monetary Board of the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange.