Financial Times

The Alliance Finance Company Ltd, now in its golden jubilee year, has recorded the highest ever pre-tax profit of Rs 80.9 million, a 34 percent growth over the previous year, while the profit after tax grew by Rs 13 million from Rs 54.6 million in 2004-05 to Rs 67.5 million in latest reported year.

“The strategies implemented in the last five years have paid rich dividends as the profits have increased more than six-fold and this growth is reflected in the earnings per share,” Pratapkumar de Silva, Chairman of the company has said in his annual review, adding that the net asset per share and the price earnings ratio have steadily grown in the last five years. The market value of the stock has also tripled in the last five years and stood at Rs 168 as at March 31, 2006.

“Our deposit base, which was Rs 110,000 in 1956, now stands at Rs 1.7 billion,” he has said, adding that some depositors have continued to use the company for three generations.

He has said that despite the company having recorded a disbursement of Rs 1.7 billion in the year under review it was able to maintain a non-performing loan ratio of just 4 percent against the industry standard of 8 percent (2005). “It is especially commendable considering the intense competition we have faced from the banking sector in building this high-quality portfolio,” he has said, adding that notwithstanding any untoward event in the political front the company hopes to maintain this ratio.

Meanwhile, the company was able to obtain an investment grading of BBB2/L2 from Sri Lanka Rating Ltd on the back of the mandatory requirement for all financial institutions approved and registered by the Central Bank to be rated by any one of the two organisations approved by the Bank. (RI)