Solid performance from SL’s oldest NBFI - Alliance Finance

Alliance Finance Company PLC (AFC), the first company in South Asia to achieve the prestigious endorsement of “a holistic sustainability certified value driven financial institution”, has concluded the first quarter of the financial year 2022/23 with a resilient performance amidst inimical domestic and external environs which impacted the country.

Despite external challenges, the company reported a 54 per cent increase in total Interest Income while doubling its profit after tax for the quarter in comparison to the same period last year, reported during a period of adverse economic conditions. A significant amount of provisions was prudently by way of management overlays in addition to the modeled impairment provisions, it said in a media release.

Further, the company also accounted for significant increases in cost of funds and operating expenses due to the upsurge in fuel prices and the resulting adverse inflationary impact.

The company’s Deposit Base grew significantly from Rs.14.6 billion to Rs.17.8 billion during the first three months of the financial year while maintaining a core capital ratio of 11.74 per cent and total capital ratio of 15.24 per cent as against the minimum core capital ratio of 7 per cent and total capital ratio of 11 per cent stipulated by the regulator.

The company was able to access long term international funding from like-minded Development Financing Institutions of global repute at a significantly lower cost in recognition of its efforts to integrate sustainability into its business.

“Notwithstanding the challenging business climate experienced in the country at present, AFC looks forward to continuing its steady journey of sustainable value creation across multiple stakeholder groups whilst realising its greater purpose of existence of making the world a better place through sustainable finance,” it said.