Alliance Finance post best ever results with 137% growth

Alliance Finance Company PLC, posted the best ever results with a phenomenal 137% growth, witnessed After Tax Profits increase to Rs 466 million during the financial year 2011/2012 and the growth in profits came from the entire spectrum of the company's business segments. Reduction in costs of borrowing, higher disbursements and optimizing margins, had been the key drivers of this performance, whist leasing, hire purchase and gold loans have been the key product segments which contributed during the year under review, Alliance Finance Company PLC Chairperson K.S K De Silva said in the company's annual report.

The company's lending had risen by a significant 75%, whilst the Net Assets had grown by 37% and Net Interest Income increased by 88% during the year. The asset base had increased by 49% whilst, deposits surged ahead by 35% to reach a total deposit base of Rs 6.7 billion during the year under review.

The company had been successful in optimizing its Net Interest Margin to 9.8% from 7.4% during the previous year. This achievement had been made more significant, in the context of the high growth in lending of 75% during the year.