Abans Finance records PBT of Rs. 114 m in 1Q

Abans Finance PLC has recorded its first quarter of FY23 ending 30 June 2022, with results that are consistent with its growth in bottom line, despite a highly volatile socio-economic environment.

The company recorded PBT of Rs. 114 million and a PAT of Rs. 74 million in 1Q of FY23, and the corresponding figures for the previous financial year were only Rs. 80 million and Rs. 41 million respectively.

In a statement, CEO Dharshan Silva said: “Company has recalibrated its strategies to be in line with the market conditions and the results delivered are because of the team assessing the status of business operation at regular intervals and successfully adopting to market conditions.”’

He added that the company is also accommodating requests from clients who were affected due to the slowdown in economic activities by adjustments of rental payments to suit the current cash flows of the clients that have been changed due to the current economic climate. The company has been focussing on small ticket transactions with asset backed finance and thereby were able to manage well in terms of concentration risk deriving from individual transactions.    

Abans Finance also uses advanced data analytics to reach towards opportunities, managing operating costs and managing risks. In this regard the company continues to progress in its automation drive so that more routine work can be digitalised, and staff can focus on strategic initiatives that can provide greater results.

Abans Finance PLC is a member of the prestigious Abans Group, a household name in Sri Lanka. With assets over Rs. 10 billion, Abans Finance PLC is one of the most innovative finance companies in Sri Lanka. 

The company’s principal lines of business include finance leasing, mortgage loans, and acceptance of fixed and savings deposits. The company currently operates across the country and is further backed by over 400 Abans PLC outlets. The National Long-Term Rating of Abans Finance PLC is ‘A-(lka)’ RWN by Fitch Ratings Lanka Ltd.

As of 31 March 2022, there was a shortfall in capital amounting to Rs. 146 million to fulfil the minimum core capital requirement of Rs. 2.5 billion. To bridge this gap, the Board of Directors have approved a rights issue and the matter to be taken up on 2 September 2022 at an adjourned EGM which was originally held on 18 August 2022, as notified to the Colombo Stock Exchange.

The statement said during 1Q of FY23, as a responsible corporate citizen with triple bottom line concepts that are being practiced, the company also facilitated emergency medicines and equipment to National Hospital of Sri Lanka (NHSL). This also included medicines and accessories for blood sugar, blood pressure, Genito-urinary, asthma, and cardiac functions. This task was accomplished at a time when these requirements were well-needed at NHSL.