The Finance Company looks to end 2012 on a high note

•  Currently aiming to expand operations even further with a fresh infusion of capital

The Finance Company PLC said in a statement that it has seen an improvement in all business areas over the last quarter, despite the adverse situation prevalent in the market due to tight liquidity and the many challenges faced in the market environment. 

Although the company could not achieve the planned growth due to certain external factors faced by the organisation, the confidence placed in the company by customers has ensured that TFC has kept abreast of the challenging market environment, sustaining its momentum.

The statement sans specific numbers said that the financial investment area of the business has recorded a growth of 15% over the last quarter. The pawning sector of the company has unfailingly proved its worth as an exceptional contributor to the firm’s revenues. The product recorded a growth of 21% in average stock over the same period, justifying the decision to open more pawning centers during this period. 

The real estate division has seen good progress within this time period with an overall growth of 43% in sales. TFC, being the market leader in real estate, has the largest number of land blocks owned by a single company and is proud to have served more than 800,000 customers. 

TFC owns a large stock of real estate comprising of housing and land of commercial value that is being disposed rapidly as a result of stabilised market conditions in the real estate sector, which will result in higher profitability for the company. High growth has once again been seen in the new deposit intake with a growth of 28% over the last quarter along with an increase of 9% in savings deposits.

A major factor that contributed to this upward trend has undoubtedly been the significance placed by the management on providing a better service to its loyal customers island-wide. Having started in early 2011, the aggressive branch expansion plans have resulted in a large number of The Finance branches growing in their roles to serve their communities more conveniently. 

Quite recently, the Galle and Badulla branches were newly modernised and unveiled to the public in September whilst in October, the Kurunegala, Hatton and Kiribathgoda branches were moved to more convenient locations. Plans are underway to relocate the Piliyandala, Negombo, Thambuttegama and Welimada branches to more strategic locations. The dominating presence the firm has built over the years with its local communities has played a major part in the position of strength it enjoys today. 

In addition to the backing of prominent state banking institutions such as People’s Bank, Bank of Ceylon and Seylan Bank as the key shareholders of the company, the financial regulator, the Central Bank of Sri Lanka, has also continued its patronage and support to its endeavours. 

Currently, the company is looking towards expanding operations even further with a fresh infusion of capital and are in serious discussions with investors who are interested in partnering with TFC, the first registered finance firm in Sri Lanka, which will have a major impact on the future profitability of the company. 

Projections have been done for the next five years to wipe off the negative net worth with the intended capital infusion in order to ensure profitable levels in its business operations. The company’s strategic plan is developed in line with the recommendations of an internationally reputed consultancy firm, whose insight would prove worthwhile in progressing the company to regain its position as the market leader with a strong balance sheet within a reasonable period of time.

To sign off an eventful year, the company will also launch the ‘TFC Advantage Card,’ to be presented to its fixed deposit customers, with an exciting range of benefits from a range of merchants in the areas of medical, textile, household and electrical items, footwear, restaurants, leisure, insurance and automobile etc to complement their lifestyles. 

Furthermore, all ground work has been completed in order to launch a debit card for savings account holders, in partnership with a leading bank in December.  Apart from the company’s key business areas, TFC has also ventured into education by starting an international school to help 750 children whose education was on the brink of disruption due to a legal issue arising from a non-payment of a loan by its previous management. 

This is currently being run by a panel of eminent professionals from the field of education, comprising of a principal from a leading school in Colombo, a professor/former dean of a reputed university as well as individuals who are experts in primary and tertiary education. Their backing has ensured that the school is currently operational at the highest standard.

The Finance Company PLC, which is household name, has over 72 years of unmatched experience in the non-banking finance sector, serving the Sri Lankan public through a network of 60 branches spread island-wide.