Abans Finance’s post–tax profit up by 31% to Rs. 34.24 mln
View(s):Abans Finance, a member of the Abans Group, has registered a pre-tax profit of Rs.51.5 million for the quarter ended 30 June 2016, compared to Rs.36.3.million recorded in the corresponding period of 2015, achieving a year-on-year growth of 41.86 per cent, the company has said. The post–tax profit of the company for the quarter under review has also improved by 31.1per cent, from Rs.26.12 million in Q1 2015 to Rs.34.24 million in Q1 2016, a statement by Abans said. “The company has continued to increase its profitability amidst external challenges such as increasing interest rates and slow down in consumption. The increase in profitability was mainly due to favourable growth in net interest income and other operating income.”
Fund based income (FBI) which experienced slight shrinking of Net Interest Margins (NIM) adversely impacted on the Net Interest Income (NII) of the entire NBFI sector and Abans Finance was no exception to this trend. Nevertheless, NII of the company recorded a remarkable increase of Rs. 58.8 million or 37.7 per cent during the period under review from Rs.155.9 million in Q1 2015 to Rs.214.7 million in Q1 2016, aided by the significant expansion of the asset-base of the company since Q1 2015, coupled with prudent liability management strategies, the statement said.
Non fund based income (NFBI) which mostly comprises of fees, commissions and other fee based income decreased to Rs.12.9 million as opposed to Rs.15.0 million earned for the first three months of the year 2015, reflecting a decline of 13.8 per cent.
The company introduced a number of unique value additions to its Hero Motor cycle leasing offerings during the period under review in order to remain competitive in view of the fact that most competitors have now made moves to the two wheeler motor cycle credit market in order to retain margins in a period of rising interest costs, according to the statement. A 380.1 per cent growth was recorded in other operating income for the period under review as compared to the corresponding period in 2015. Other operating income earned during the first quarter of 2016 amounted to Rs. 4.5 million whereas Q1 2015 was only Rs.0.95 million.