Stellar performance by Orient Finance
Orient Finance PLC achieved a commendable performance for the six
month period ended 30 September 2012 recording an income of Rs.382
million as against the Rs. 221 million income for the same period of the
previous year. This is a 73% increase over the same period last year.
The Company was able to record this performance mainly due to continued
growth of its lending portfolio and sound collection practices.
The Company reported a Profit After Tax of Rs. 88.6 million which is
a 80% growth as against the previous year Profit After Tax of Rs. 49
million. Accordingly the EPS of the Company increased to Rs. 0.77 for
the six months period from Rs. 0.52 recorded for the corresponding
period of the previous year, recording a 48% growth. This has been
achieved through maintaining adequate interest margins and stringent
management of the overhead expenses as against the income growth.
Overhead expenses have increased by 24% whereas the income has increased
by 73% during the period under review.
Net Interest Income also recorded a 22.8% growth over the
corresponding period of the previous year despite the increase of
interest expenses by 203% due to the increase in market rates and
increase in total borrowings to finance the increasing lending portfolio
of the Company. The Company has increased its gross lending portfolio to
Rs.2,903 million by 30 September 2012 which was Rs 1,718 million as at
30 September 2011.
Orient Finance PLC has taken steps to prudently manage and minimize
the funding costs through professional treasury management practices.
The Company obtained a license from the Monetary Board of the Central
Bank under the Finance Business Act No.42 of 2011, Orient Finance
commenced accepting Fixed Deposits from August 2012.
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