|
Central
Finance continues steady growth; 9 month pre-tax profit
ups Rs. 1b
With
a network of 50 branches already serving customers in
different parts of the country, Central Finance hopes
to expand the network in the coming months, and the
fast developing Eastern Province has also been earmarked
for expansion.
In
the current financial situation and midst macro economic
challenges in Sri Lanka the leading finance company,
Central Finance PLC (CF) is performing well and has
reported successful operational results, for the nine
months ended December 31 2008.
The results during the nine months ending December 2008,
just released, record an encouraging performance with
total assets increasing.
Total assets stood at Rs 31.2 Billion as compared with
Rs 29.4 billion in 2007 (April-December) whilst deposits
increased from Rs 12.3 billion to Rs 13.3 billion.
Highlights for the period under review were an increase
of 16% in income over the comparable period generated
through its core business activities. Profit before
tax was Rs 1.04 billion (increase of 6.4% over corresponding
period), while after tax profits recorded a marginal
(0.9%) drop to Rs 732 million due to higher taxation
(Rs 316 million compared to Rs 214 million).
Sound treasury management practices have resulted in
containing funding costs at 22%, which is significantly
better than its peers. Despite the expansion of business
activities, overhead cost increases have been contained
to a mere 6.7% (of which 2.1% includes VAT on financial
services) over the comparable period.
Shareholder funds continued to grow recording an increase
of Rs 660 million and stands at Rs 6.825 billion. Fitch
Ratings Lanka, recently affirmed the Company’s
National Long-term rating at ‘A+ (lka)’ with
the comment ‘The outlook is stable.’
“Well defined credit policies and stringent recovery
procedures have translated into asset quality that is
amongst the best in Registered Finance Company (RFC)
sector in Sri Lanka,” Fitch Ratings stated. Now
in its 52nd year, Central Finance has been recognised
as one of the most respected financial services companies
in the country.
Whilst fixed deposits continue to grow, there is also
a satisfactory expansion in savings accounts operations,
which have been further supplemented with the recent
link-up with the Commercial Bank network of over 300
ATMs islandwide.
During the period under review, FMO, a financial institution
owned by the Dutch Government extended an Euro
six million, long-term credit facility on attractive
terms, as a further endorsement of the Company’s
financial strength.
“Complementing the normal lending operations, the
company has also initiated several promotional campaigns
in association with strategic partners. Especially of
note are the mega-promotional events scheduled in Ampara,
Dehiattakandiya and Anuradhapura over the next three
months” stated a company spokesperson. Also, depositor
confidence in the Company is demonstrated with the very
high renewal ratios. With a network of 50 branches already
serving customers in different parts of the country,
Central Finance hopes to expand the network in the coming
months, and the fast developing Eastern Province has
also been earmarked for expansion.
|
