Siyapatha Finance profits surge in 2017
View(s):Siyapatha Finance, the largest subsidiary of the Sampath Bank Group, has reported an after-tax profit of Rs. 498.86 million for 2017, an increase of 52 per cent from Rs. 327.28 million reported in 2016.
Total interest income grew exponentially by 62 per cent year on year to Rs.4.6 billion in 2017, which was made possible by the improvement in business volumes, which enabled the company to achieve significant strides in its business segments of leases and loans whilst managing risk and return at both product and business levels, the company said in a media release.
The growth in profitability was attributed to the significant increase in Net Interest Income (NII), Net Fee and Commission Income.
The company reached a significant milestone last year with the asset base reaching Rs. 29.81 billion, recording an increase of 43 per cent over 2016.
Siyapatha Finance introduced loans to its product portfolio in the second half of 2016, and in the year under review a net growth of Rs. 1.98 billion was achieved.
Leasing/hire purchase expanded by Rs. 5.4 billion, reflecting a 37 per cent increase with a total portfolio of Rs. 20.12 billion. Gold financing stood at Rs. 2.56 billion, recording an increase of Rs. 794 million or 45 per cent.
Deposits increased substantially to Rs. 5.97 billion, recording a growth of 178 per cent over the preceding year. “We at Siyapatha Finance are extremely proud of our financial results for 2017. We are especially happy with the 178 per cent growth of deposits and the noteworthy improvement of shareholder funds. These are testament of the customer’s growing confidence in Siyapatha Finance,” said Saman Herath, Managing Director of Siyapatha Finance.