The Finance looks to end 2012 on a high note

The Finance Company PLC, the pioneer financial giant, which marks its 72nd year of operations in the country, have seen an improvement in all business areas over the last quarter. This is despite the adverse situation prevalent in the market due to the tight liquidity and many challenges faced in the market environment. Although the company could not achieve the planned growth due to certain external factors faced by the organisation, the confidence placed by the customers had ensured that the company had kept abreast in the challenging market environment, sustaining its momentum. TFC Chairman Preethi Jayawardena told 'Daily News Business.'

In addition to the backing of prominent state banking institutions such as People's Bank, Bank of Ceylon and Seylan Bank as the key shareholders of the company, the financial regulator, the Central Bank of Sri Lanka, had also continued its patronage and support to its endeavours. Currently the company is looking towards expanding operations even further with a fresh infusion of capital and are in serious discussions with investors who are interested in partnering TFC, the first registered finance firm in Sri Lanka, which will have a major impact on the future profitability of the company, Jayawardena said.

Projections have been done for the next five years to wipe off the negative net worth with the intended capital infusion in order to ensure profitable levels in its business operations, he said. The company's strategic plan is developed in line with the recommendations of an internationally reputed consultancy firm, whose insight would prove worthwhile in progressing the company to regain its position as the market leader with a strong balance sheet within a reasonable period of time.

The financial investment area of business has recorded a growth of 15% over the last quarter. The pawning business of the company has unfailingly proved its worth as an exceptional contributor to the firm's revenues. The product recorded a growth of 21% in average stock over the same period, justifying the decision to open more pawning centers during this period.

The Real Estate division has seen good progress within this time period with an overall growth of 43% in sales. TFC being the market leader in Real Estate has the largest number of land blocks owned by a single company and is proud to have served more than 800,000 customers. High growth has once again been seen in the new deposit intake with a growth of 28% over the last quarter along with an increase of 9% in Savings deposits.

A major factor that hadcontributed to this upward trend had undoubtedly been the commitment placed by the management on providing a better service to its loyal customers islandwide. Meanwhile the aggressive branch expansion plans which commenced in early 2011, have resulted in a large number of The Finance branches growing in their roles to serve their communities more conveniently.

The Galle and Badulla branches have been refurbished and opened. Kurunegala, Hatton and Kiribathgoda branches have been re-located to more strategic locations. Plans are underway to relocate the Piliyandala, Negombo, Thambuttegama and Welimada branches to more strategic locations.

The dominating presence the firm has built over the years with its local communities, had played a major part in the position of strength it enjoys today, Jayawardane further stated.

Under new developments, there is the launch of the TFC Advantage card to Fixed Deposit holders as a value added scheme which will offer an exciting range of benefits from a range of merchants in the areas of medical, textile, household and electrical items, footwear, restaurants, leisure, insurance and automobile, etc.

The Debit Card for Savings Account holders will be launched in December jointly with a leading bank and all ground work has been completed in this area. Apart from the company's key business areas, ,TFC has also ventured into education by starting an international school to help 750 children whose education was on the brink of disruption due to a legal issue arising from a non-payment of a loan by its previous management. The school is now fully operational with the backing of a team of eminent professionals in primary and tertiary education, Jayawardana said in conclusion.