The Finance Company (TFC) plans to reach Rs 1 billion in profits within the next three years, officials said this week.
They said the confidence TFC has regained from the depositors has given sufficient justification to venture forward to and become a more profitable venture. A stagnant real estate sector that has now started to boom is the signal of far better times to come, they said.
The Finance Company which owns 3000 blocks of land which have not been selling over the last few years have now begun to move (in sales). At present around 300 blocks are sold per month, said Director and Chief Executive Officer Kamal Yatawara at the media announcement of the share issue in Colombo this week.
The strength of the company has always been in the real estate sector, though previously they were not able to move these plots largely because of the internal competition within the group.
Now however the situation has reversed and as a result land can now be disposed of at market price or even slightly below.
Today people who want an alternative investment solution to depositing banks and other financial institution are turning to real estate. “With this trend we have seen an increase of 173 % in the real estate sector which is a significant contributor to the company’s revenue,” Mr Yatawara said.
This contribution has been so significant that now the company has decided to go in more for short term and medium investment options as against long term as in the past. With this in view the company has ventured into pawn broking. Having opened 30 branches has resulted in showing a 50 % growth in this sector in the last quarter with plans for a 50 % expansion this year, he said.
Commenting on the company’s vehicle business that has shown significant improvement, he said, “we have recorded 3000 transaction during the last six months. The NPL has only been 0.1 percent.
This is largely to attributed the company having one of the best recovery teams in operations. According to the overall performance the new deposit intake has grown 47 %, increasing the monthly new deposits to Rs. 300 million. On the first working day of 2011 the company recorded an intake of Rs. 98.9 million”. |
E-mail
