The Finance Company PLC surges ahead with positive 1Q of FY2012

Friday, 17 June 2011 00:26 - - {{hitsCtrl.values.hits}}

The successful share issue which concluded in January 2011 saw the entry of two state banking giants, Bank of Ceylon, People’s Bank and also Seylan Bank, who now hold a major stake of the company.

The Finance Company is now a non banking finance entity which has the patronage from such banking institutions, reiterating the faith placed in the staff, management and the company as a steadfast financial organization in Sri Lanka.

The investment area of business has been particularly impressive with an overall growth of 92% during the last 3 months. This has been due in no small measure, to strict credit policies that have reduced non performing loans to just 0.2% of business done during the last two years.

The pawning business of the company has recorded an impressive growth of 55% during the last 3 months in a competitive market and is considered a significant contributor to the overall revenue stream. The company hopes to expand this business to the North East area where it will commence operations shortly.

Consistent growth has been seen in the new deposit intake and It is encouraging to note that a majority of existing depositors show desire to renew their investments at maturity. This is directly attributed to increased investor confidence after the re structuring of the organization and the appointment of the new board of directors.

“With the company now having recognized and made provisions in the reduction of realizable value of assets, it is poised to achieve positive results in the financial year 2011/12,” Director and CEO Kamal Yatawara said.

It has been a noteworthy performance within a short span of time by The Finance Company which completes 70 years of operation with a large deposit and asset base in the non banking financial sector and a vast reach of 60 branches spread islandwide. This is a strong platform to bounce back from the challenges the company faced during the last two years.

The backing of large banking institutions and the new board of eminent directors led by Preethi Jayawardena, as its chairman who has vast experience in the financial services industry would definitely give impetus to the current year seeing The Finance Company PLC further consolidating on its turnaround towards a new era of prosperity.