ETI records phenomenal growth in 2006/2007

During the year under review Edirisinghe Trust Investments was able to maintain a steady growth rate since its re-organisation efforts in 2004. Today ETI has progressed to become the fourth largest finance company based on the size of the company's deposit liability according to the Central Bank. The financial year 2006/2007 has seen an unprecedented success for ETI in all spheres of the company's business activities.

ETI has recorded a gross income of Rs. 880.0 mn in 2006/7 compared to Rs. 535.0 mn in the previous year, a 64 per cent increase.

The net interest income which is an extremely significant factor as this is the main source of income with regards to finance companies which has recorded Rs. 298.0 mn in 2006/7 compared to Rs. 121.0 mn in the previous year, a 146 per cent growth.

The profit before tax has recorded a healthy Rs. 143.0 mn compared to Rs. 47.0 mn previous year an increase of 204 per cent and the profit after tax which is attributable to the shareholder ownership has increased by 211 per cent to Rs. 109.0 mn from a mere Rs. 36.0 mn an increase of 203 per cent.

The company's total asset base has gone up by 32 per cent. The return on equity has increased to 14 per cent from 6.9 per cent to that of last year. The return on assets has increased to 2.61 per cent from the 1.13 per cent of last year. The company's per capita income has also risen to Rs. 2.3 mn from Rs. 1.6 mn in the last year.

"These are performance indicators which show the company's extremely high performance as well as growth rates that have resulted in the company's overall success in its business activities. Pawning contributes to 55 per cent of the company's business activities.

The company's other large business lines comprise housing and real estate, leasing and sale of gold. Despite an extremely turbulent year the company was able to whether the storm and progress rapidly achieving exceptionally high results. ETI was able to show a good growth momentum after the company's reorganisation efforts in the year 2004," CEO of ETI, Mahendra de Silva said.

The organisation has achieved remarkable expansion which include 26 pawning centres, 14 gold sales centres and five new business centres in the provinces to engage in leasing activities.

The company has matured over the years in terms of product lines and stocks which have also resulted in the business being able to drive forward despite such a competitive environment.

ETI has also developed with regards to technology implementing a new software system for gold sales, credit division and general ledger as well as developing new in-house total solutions software for front office operations.

Edirisinghe Trust Investments Limited (ETI) has been in business for the last 40 years and during this period of time has shown a vast improvement especially after the company's re-organisation efforts in 2004.

The company's core business pawning of jewellery and accepting deposits from the public, jewellery sales, granting loans, agricultural loans and consumer durable loans, exhibiting films, investments in government securities and other commercial banking and institutions were the products handled by the company prior to its reorganisation.

At present ETI has a total of 26 pawning centres to carry out pawning activities of which five centres are located within the Colombo Municipal limits as well as another centre located at Maharagama.