Orient Finance reports robust financial growth for nine months of FY25

Wednesday, 26 March 2025 00:11 - - {{hitsCtrl.values.hits}}

Orient Finance PLC has reported an outstanding financial performance for the nine-month period ended 31 December 2024, showcasing significant growth in key financial indicators compared to the corresponding period in 2023.

The company recorded a remarkable 161% increase in profit after tax, reaching Rs. 254.6 million compared to Rs. 97.6 million in the same period of the previous year. Net interest income surged by 37%, amounting to Rs. 1.66 billion from Rs. 1.21 billion, demonstrating strong portfolio growth and enhanced operational efficiencies.

Total assets expanded by 28%, rising to Rs. 25.3 billion, while loans and receivables increased by 36% to Rs. 19.76 billion. The company’s deposit base grew to Rs. 15.12 billion, marking a 19% increase, reflecting continued customer confidence. Meanwhile, the total equity improved by 12%, standing at Rs. 3.86 billion.

Earnings per share (EPS) grew 163% to Rs. 1.21, up from Rs. 0.46, while net assets per share (NAPS) rose by 12% to Rs. 18.27.

For the month of December 2024, Orient Finance reported a Cost-to-Income Ratio of 68%, reflecting continued efforts towards cost management amidst challenging market conditions. The Gross Non-Performing Loan (NPL) Ratio stood at 9.62%, while the Provision Cover was maintained at a healthy 65.37%, demonstrating company’s prudent approach to credit risk management. As the quarter ended 31st December 2024, Orient Finance’s Tier 1 Capital Ratio stood at 13.14%, with the Total Capital Ratio recorded at 13.16%, both remaining comfortably above the minimum regulatory requirements.

Chairman Rajendra Theagarajah said: “These exceptional results underscore our commitment to sustainable growth and operational excellence. Our focus on innovation and customer-centric financial solutions has strengthened our position in the market. As we continue to evolve, we remain dedicated to offering innovative financial products that meet the diverse needs of our customers while driving long-term shareholder value.”

Director/CEO K.M.M. Jabir said: “The strong financial performance is a testament to our strategic vision and disciplined execution. The significant growth in our business volumes, particularly in leases, gold loans, and fixed deposits, has been instrumental in achieving these milestones. We have implemented a well-structured growth strategy that emphasises efficiency, risk management, and market responsiveness. This has enabled us to expand our portfolio while maintaining financial stability and enhancing customer trust.”

Orient Finance PLC said as it continues with the growth trajectory, the company remains dedicated to delivering value to stakeholders while expanding its footprint in Sri Lanka’s financial services sector.

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