Siyapatha Finance posts steady growth in 1H of 2024

Siyapatha Finance Managing Director Ananda Seneviratne 

Siyapatha Finance PLC recently posted a steady financial growth for the first half ended 30 June 2024. The company recorded a Profit After Tax (PAT) of Rs. 513 million indicating a 189% increase compared to the corresponding period last year, while the Profit Before Tax (PBT) grew by 133% compared to the preceding year and stood at Rs. 1,215 million.

During the period, Net Interest Income (NII) saw a notable upsurge of 70.0% to reach Rs. 2,078 million compared to Rs. 1,223 million recorded during the previous year – an increase fundamentally attributed to the significant decrease in interest expenses as at 30 June 2024. 

The company posted a Return on Assets (ROA) and Return on Equity (ROE) of 4.35% and 13.29%, respectively, while maintaining a Cost-to-Income Ratio of 55.59%, reflecting a positive movement of 13.93% compared to the same period in the previous year.

The finance company witnessed satisfactory financial stability against socio-economic shocks during the period in review. This was reflected by Tier 1 and Total Capital Adequacy Ratios (CAR) that stood at 16.43% and 19.42%, respectively, surpassing the statutory minimum ratios of 8.50% and 12.50%.

In terms of asset quality, the period under review recorded total assets at Rs. 56 billion compared to the Rs. 47 billion recorded during the corresponding period last year. Further, it is evident that the asset quality of the portfolio has improved with the reduction of non-performing advances (NPA) ratio by 7.74%.