The Finance says it is on a progressive path

Friday, 1 June 2012 02:36 - - {{hitsCtrl.values.hits}}

The Finance Company PLC, celebrating its 72 years of business said yesterday in a statement that it has recovered from deep losses incurred during the turmoil the company was engulfed in, due to the Celyinco fiasco, to post a steady and sustainable growth.

The company has during the past financial year been able to steer its course towards creating value to the clientele and the country at large due to a comprehensive restructuring program overlooked by the Central Bank of Sri Lanka.

The restructuring program has ensured that The Finance Company PLC adheres to strict and stringent measures laid down by the countries governing authority which has borne fruit. During the previous financial year the company showed remarkable signs of stability and progress, overcoming a LKR 3.8 billion loss which was reduced to 196 million. The Finance Company PLC together with its employees and loyal customers has made sure and proven its commitment towards embarking on a sustainable path towards profitability.

The new deposits intake during the concluded financial year has increased by 170% in addition to renewals. The new deposit intake went up to LKR 1 billion in addition to renewals in the month of April 2012 underscoring the trust and faith depositors have placed with the company. The loan disbursements of the company have seen accelerated growth of 123% in 2011/12 compared to 2010/11 whilst the Savings deposit intake has been on an upward trend with a year on year growth of 54%. Not surprisingly, the company enjoys its status as the custodian of one of the largest deposit bases in the non bank finance sector of the country amounting to over 20 billion.

Pawning being a main contributor to the company’s bottom line has lived up to its expectations, recording a year on year growth of 237%, justifying the decision to open dedicated pawning centres islandwide including the north east. The real estate sector has shown an astounding growth of 350% in sales, bringing in Rs. 2.7 billion. Recent land sale projects of the company have proven to be highly successful providing good returns, while offering to the customer at the market price or even below with sound infrastructure, mainly due to the companies high bargaining power over suppliers.

The Central Bank of Sri Lanka issuing a press release last week confirmed that ‘The Finance Company PLC’, an institution with a proud history and legacy, is under the direct purview of The Department of Supervision of Non bank financial institutions of the Central Bank. The Finance Company PLC during its restructuring process adheres to strict and stringent measures laid down by the Central Bank of Sri Lanka in carrying out its operations throughout the country.

“The achievement of The Finance Company PLC during the last year, which is remarkable by any standard makes it evident that anything can be achieved through the dedication and commitment of all stakeholders,” the company said in its statement.