Monday, 3 March 2014 01:59
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Nation Lanka Finance PLC has recently set another industry example by turning around the finance company by wiping out losses to make profits. NLF reported a consolidated net profit of Rs. 39 million during the nine months ended 31 December 2013 compared to a loss of Rs. 177 million during the same period in the previous financial year. During the period in focus, net interest income has increased to Rs. 380 million whilst net operating income rising to Rs. 597 million.
Attributing the company’s success on factors such as growth in lending portfolio and growth in its total asset base Chief Executive Officer Charith Amarasekara said: “The asset base have increased to nearly Rs. 4.5 billion with group asset base rising to Rs. 5.2 billion levels. Our deposit base has also seen a healthy growth of around Rs. 700 million to Rs. 3.3 billion while a similar increase has been seen in our lending portfolio within a short period of nine months ending 31 December 2013,” he said.
“This tremendous achievement does the talking for ourselves, for our commitment, passion and dedication and the strategic guidance from our board of directors. The growth of lending portfolio and in turn managing the NPL ratio at very lower percentage, which is now less than 5%, is more than testimony to prudent management practices we follow. While we concentrated on identifying the right customer with the required credit worthiness, we have also efficiently carried out collection and recoveries. Tribute of this success should go to each and every member of our 400 staff members whom have contributed their best to turn around our company,” he added.
NLF recently announced the signing of an agreement with a US based investment fund, GEM Global Yield Fund, an alternative investment group that handles a diverse set of investment vehicles across the world, to invest in a Private Placement of new shares coupled with Warrants totalling an equity investment of approximately Rs. 1.4 billion. Amarasekara, elaborating further said: “We have already made plans to disburse new funds very quickly to yield the maximum returns to the company. Fresh capital of Rs. 1.4 billion will appreciate our Net Asset Value (NAV) per share by roughly Rs. 4 taking the overall NAV to over Rs. 5 per share. But with the returns we anticipate on our investments, especially in Micro Finance, we expect our NAV to climb very fast to levels above Rs. 10 per share in the near-term giving maximum upside to our valued shareholders.”
NLF group is consisted with Millennium Housing Developers Ltd., Nation Lanka Equities, and Nation Lanka Capital. Millennium Housing recently went public and now listed on the CSE trading under MHDL ticker.
NLF is a Public Limited Liability Company incorporated in Sri Lanka on 15 July 1987 under the Companies Act No. 17 of 1982 and re-registered under the Companies Act No. 7 0f 2007. The company is also a finance company approved and regulated by the Central Bank of Sri Lanka. During the past 25 years NLF built its reputation on strong connections with local communities. With 23 branches throughout Sri Lanka, NLF is well placed to support our communities at a local and international level using its strategy is built around customers, putting them at the center of everything NLF does and helping them realise their potential.
