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Stellar performance by Orient Finance plc
View(s):Orient Finance PLC achieved a commendable performance for the six month period ended 30 September 2012 recording an income of Rs.382 million as against the Rs. 221 million income for the same period of the previous year. This is a 73% increase over the same period last year. The Company was able to record this performance mainly due to continued growth of its lending portfolio and sound collection practices.
The Company reported a Profit After Tax of Rs. 88.6 million which is a 80% growth as against the previous year Profit After Tax of Rs. 49 million. Accordingly the EPS of the Company increased to Rs. 0.77 for the six months period from Rs. 0.52 recorded for the corresponding period of the previous year recording a 48% growth. This has been achieved through maintaining adequate interest margins and stringent management of the overhead expenses as against the income growth. Overhead expenses have increased by 24% whereas the income has increased by 73% during the period under review.
Net Interest Income also recorded a 22.8% growth over the corresponding period of the previous year despite the increase of interest expenses by 203% due to the increase in market rates and increase in total borrowings to finance the increasing lending portfolio of the Company.
The Company has increased its gross lending portfolio to Rs.2,903 million by 30 September 2012 which was Rs 1,718 million as at 30 September 2011.
Orient Finance PLC has taken steps to prudently manage and minimize the funding costs through professional treasury management practices. The Company obtained a license from the Monetary Board of the Central Bank under the Finance Business Act No.42 of 2011, Orient Finance commenced accepting Fixed Deposits from August 2012.
During the period under review, the Company expanded its customer reach by opening four new window offices in Anuradhapura, Jaffna, Killinochchi and Batticaloa. The Anuradhapura and Gampaha branches were upgraded to fully fledged branches. The Company has planned to upgrade the window offices at Avissawella, Kalutara, Galle Kandy, Jaffna, Vavuniya and Kilinochchi to fully fledged branches within the current financial year, a move to enhance the mobilization of fixed deposits. The other window offices will be progressively upgraded next year.
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