Financial Times

The Finance deposit base nears Rs 15 bln

The Finance Company Limited, the financing arm of the Ceylinco group, earned Rs. 37.8 million, or Rs. 7.40 per share, for the three months ended June 30, 2005, up from 13.2 million, or Rs. 2.59 per share, in the same quarter a year before.

The result shows a sharp increase of 186 percent in the company’s performance. The company reported net interest income of Rs. 229.6 million for the three months ending June 30, up 27 percent. It is continuing an aggressive expansion and plans to increase its deposit base, hire purchase and leasing assets.

Public deposits as at June 30, 2005 were Rs. 14.6 billion, up 20 percent compared to Rs. 12.1 billion a year ago and considered as the largest fixed deposit base in the non banking financial sector.

Investment in hire and lease purchase also showed a steady growth. Hire and lease purchase assets as at the end of the quarter were Rs. 4.6 billion, up 70 percent compared to that of Rs. 2.7 billion generated in the previous year.
According to quarterly financial statements released by the company total operating expenses rose by Rs. 93 million to Rs 327 million in the quarter and provision for loan losses were reduced by Rs. 28 million to Rs. 52 million.

The improved performance also moved the company’s shareholders funds to Rs. 1.6 billion an increase of 21 percent compared to that of Rs. 1.4 billion funds a year ago. Its market capitalization on the Colombo Stock Exchange as of close of business on September 6, 2005 was Rs 831 million at the market price of Rs 46.25 per share.

The finance company, a member of Ceylinco Group, was established in 1940. Today the company is the non banking financial institution with the largest island wide branch net work and service centres.

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