The Finance records impressive growth in 2012

The Finance Company PLC, has capped a strong period with an impressive performance in their business activities at the end of the financial year 2011/12. This follows the company's fast tracked return to a remarkable growth last year.

This upward trend had been boosted by a consistent execution of the company's strategic plan set up after the infusion of fresh capital.

Among these were branch expansion plans that included relocating a number of their key branches to more strategic locations to maximize its potential and the service to customers. Customers in Batticaloa, Vavuniya, Maharagama, Nelliady, Polonnaruwa and Anuradhapura now enjoy greater convenience and ease in fulfilling their financial needs.

The branch relocations also saw a triumphant return to their own premises in Jaffna which was the firm's first branch to be opened in the country back in 1976. Furthermore, as a part of the overall brand strategy to enhance the corporate brand image a facelift was given to many branches situated all over the country.

In addition to the backing of prominent state banking institutions such as People's Bank, Bank of Ceylon and also Seylan Bank as shareholders of the company, the Central Bank of Sri Lanka, the regulator of the industry also extends its patronage and support its endeavours.

The presence of the Governor and all senior officials of CBSL at the unveiling of the new The Finance Jaffna Branch building reflects the faith placed by regulator.

The investment area of business has been impressive with accelerated growth of 123% during the financial year.

Special emphasis on mitigating credit risk and providing more stringent controls and credit policies has had a tremendous improvement in credit quality maintaining a NPL ratio of around 1% of financial investments done during the last three years.

The pawning business of the company which was tagged as an exceptional contributor to the firm's revenues have exceeded internal expectations and recorded a growth of 237% year on year, justifying the decision to open pawning centres islandwide including the north and the east. The newest pawning centers that opened were in Batticaloa, Trincomalee, Vavuniya and Maharagama totaling the overall figure of pawning units to 36.

The Finance being one of the market leaders in real estate, has recorded an increase of 350% bringing in Rs. 2.7 billion in real estate sales in comparison to last year. Recent land projects of the company have been sold with an average profit margin of 24% bringing the annualized profit to almost 75%, with an average turnaround period of 4 months.

All new projects done during the period have brought very good returns whilst giving the customer an opportunity to own a block of land with good infrastructure at a reasonable price as oppose to creating prices, which is a result of the bargaining power the company has at the time of purchase and adding value.

The Finance concluded operations for the month of April on a high note recording a remarkable inflow of fresh deposits of over Rs. 1 billion. A high growth of 170% was seen in the new deposit intake compared to the previous financial year.