Swarnamahal Financial Services posts Rs. 129 m operating profit in 1H

Monday, 26 November 2012 00:00 - - {{hitsCtrl.values.hits}}

Swarnamahal Financial Services Plc (SFS) has recorded a strong performance by securing its growth momentum during the first six month of the financial year 2012/13.

During the first six month of the FY13 year the company turnover grew by 28% to Rs. 634 million in comparison to Rs. 495 million a year earlier, while the net income also grew by 14% to Rs. 273 million.

Operating profit in the FY13 first half was Rs. 129.5 million, up by 5% over the first half of last financial year. Pre-tax profit was Rs. 112 million, up by 4% and after tax profit was Rs. 71 million, down marginally by 6% over the 1H of FY12.

“As one of the most trusted finance companies in the country, 65% of SFS’s total assets are backed by gold. During the first half of FY13, the gold pawning portfolio grew by 14.2% to Rs. 3.9 billion as at 30 September 2012,” SFS Director Nalaka Edirisinghe said.

Interest income from pawn advances grew b 34.3% to Rs. 556 million during 1H of FY13 in comparison to Rs. 414 million recorded in the corresponding year’s 1H.

The company continues to improve the quality of the credit portfolio by easing NPL ratio to 0.3%, which is well below the industry average. Nevertheless, the cost/income ratio rose by 8% from 48.1% in September 2011 to 44.4% in September 2012, Edirisinghe added.

The total asset base of SFS grew by 13.2% from Rs. 5.31 billion in March 2012 to Rs. 6.01 billion as at 30 September 2012. The deposit portfolio also grew by 14.2% to Rs. 5.02 billion compared with Rs. 4.39 billion recorded as at 31 March 2012.

“The branches in the Northern and Eastern Provinces account for one-third of the company’s total assets due to rising demand for our financial services from the newly-liberated areas Therefore a plan is underway to open five new branches during the financial year 2012/13 with a view to further increase the accessibility to our services to the customers in such provinces and further enhance our growth momentum,” Edirisinghe said.

SFS is presently enriched with seven fully-fledged branches and 10 pawning centres. Edirisinghe said the company has already obtained the approval from the Central Bank to upgrade the pawning centres located at Batticaloa, Chilaw, Hatton and Kandy into fully fledged branches which in turn, will enable SFS to increase customers’ accessibility to financial products marketed by the company.

“Therefore the company is now capable of offering the full range of its financial services through such branches,” Edirisinghe added.

Swarnamahal Financial Services PLC offers gold loans/pawning services, leasing and hire purchase services, fixed deposits and savings accounts for both corporate and individual customers.

The company’s Board of Directors is led by the Chairman Jeewaka Edirisinghe. Other Board members are Nalaka Edirisinghe, Deepa Edirisinghe, Asanka Edirisinghe, Sunil Abayaratna, Sameera Ganegoda, and Ajith Weerasinghe.

SFS is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011 and listed on the Colombo Stock Exchange.