Singer Finance net profit grows by 80% in third quarter
Singer Finance announced impressive financial results for 3Q FY
2011/2012, recording a net profit before tax of Rs. 57.4 million, which
is a growth of 80% over the prior year, and Rs. 154.9 million for the
nine months ending in December 2011, which in turn represents a growth
of 73% over the previous year.
The company's income increased by 34% in the third quarter from Rs
252 million to Rs 338 million while the income for nine months ending in
December 2011 increased by 25% from Rs 725 million to Rs 903 million.
The company's numbers were buoyed by an increase in the Leasing and
hire purchase portfolio, which accounted for 68% of revenue for the last
quarter and 61% of revenue for the nine month period ending in December
2011.
Further augmenting the net profit before tax is the steady control of
costs. CEO of Singer Finance (Lanka) PLC Shantha Wijeweera said, "We've
displayed an admirable ability to control costs in relation to revenue,
demonstrated by an operating costs-to-income ratio of 42% - down from
47% last year same quarter, and 42% - down from 44% in nine months last
year."
Further augmenting the numbers were the company's low non-performing
loans (NPL) ratio, which stood at 0.3% during the 3Q FY 2011/2012. The
NPLs are among the lowest in the industry.
The Risk Weighted Capital Ratio of 18.75% too is well-above the
minimum regulatory requirement of 10%.
Singer Finance has zero exposure to shares and the stock market and
is totally unaffected by the decline in share prices experienced
currently.
"During the nine month period, we added three new service providing
locations to the branch network, on which two of them are in previously
untapped markets such as the Northern Province (Vavuniya) and Eastern
Province (Ampara)," said Wijeweera.
Singer finance (Lanka) PLC was listed on main board of Colombo stock
exchange and currently 24.99% of Shares are held by the public. |