The Finance reports Rs. 663 m profit for 07/08

The Finance Company, has made steady and measurable growth during the financial year 2007/08. A dividend of 18 per cent was announced at the Annual General Meeting held last week.

In the results released, the company recorded a net revenue of Rs. 11,306 million in the financial year 2007/8, where as in 2006/7, it was Rs. 10,986 million.

The company made a net profit of Rs.663 million in the reporting period.

The narrowing of margins in financing real estate, increase in cost of borrowings due to upward movements in the Government treasury bill rates have affected the profitability of the Company.

However, the relatively strong position has allowed the company to move cautiously in line with a strategy, while managing the business in extreme tight conditions.

In this context the company’s performance has been good. The deposit base has increased from Rs. 21.8 Billion to Rs. 28.6 Billion a growth of 30.7 per cent, to the growth of 27 per cent in the previous year.

This certainly amplifies the confidence placed by the public, in the company.

Most finance companies did offer high interest rates to attract deposits.

The Finance Company did not follow this and as a result has been able to maintain interest margins at satisfactory levels under the circumstances. In particular the inflow of premier customers, built through relationship with enhanced products and services have paid dividends to the Company’s operations.

The company has introduced new products during the period under review. The range includes - TFC Triple Vasi, Indana Sahana and Agri Fixed deposits.

The shareholders who were present at the Annual General Meeting were appreciative of the progress made by the company. The Finance Company has a track record of providing sustainable value to the Sri Lankan economy.

“We will continue to sow the seeds of empowerment and influence ethical corporate citizenship,” Joint Deputy Managing Director/CEO of The Finance Co., P.K. Karunanayake said.