Financial Times

Finance Company’s 9-month net profit soars
The Finance Company Ltd, the financing arm of the Ceylinco Group of companies, has reported a net profit of Rs. 558.3 million or Rs. 36.45 earnings per share for the nine months to December 2005, up from Rs. 135.7 million or Rs. 8.86 per share from the net in the same period a year before.

The performance shows a sharp increase of 311 % in the company’s bottom line performance. The company, in a statement, also reported a net interest income of Rs. 918 million for the same period, up 49 % from Rs. 617 million it reported a year ago, .

According to interim financial statements released by the company, total operating expenses rose by Rs. 114.5 million to Rs 990.5 million for the 9-month period under review.

It also has made provision for loan losses amounting to Rs. 222 million as against a loan loss provision write back of Rs. 100 million in the same period of the previous year.

The company is continuing an aggressive branch expansion and plans to increase its deposit base, hire purchase and leasing assets. Public deposits as at June 30, 2005 were Rs. 16.3 billion, up 28.3 % compared to Rs. 12.8 billion a year ago. This deposit base ranks the company with 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. 8.9 billion, up 30.8 % compared to that of Rs. 6.8 billion generated in the previous year, the statement said.

In a significant development the company also raised its housing loans portfolio to Rs. 1.4 billion from Rs 859 million granted a year ago and increased its stake in the real estate business. Investments in real estate amounts to Rs. 3.2 billion compared to Rs. 2.5 billion a year ago.

The improved performance also moved the company’s shareholders funds to Rs. 2.1 billion against Rs. 1.5 billion funds a year ago. The Finance Company is the largest non banking financial institution with an island wide branch net work, service centres and the largest deposit base and other portfolios.

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