The Finance Company achieves profits in 1Q

As at the end of the first quarter for the new financial year, the decision makers and stakeholders of The Finance Company PLC can look back with satisfaction at the company’s performance over the last quarter, as it has been able to record a profit after a period of two-and-a-half years.

Net profit for the first three months ended 30 June 2011 was Rs. 26.4 million, as against a loss of Rs. 430.8 million in the corresponding period of last year. The pawning business, which had seen a sharp rise during the last quarter, ended with an impressive overall growth of 64%, whereas the leasing and hire purchase product portfolio has seen encouraging growth of 50% in the first quarter. The overall monthly investment business has reached the Rs. 1 billion mark with over Rs. 500 million coming in monthly as new deposits.

The financial crisis that hit markets globally has been particularly harsh on the financial services industry, whereas some local financial institutions also suffered severe setbacks during this period. The Finance Company PLC needed a steadying factor to weather the storms it faced, which came through the guidance of the Central Bank of Sri Lanka along with the members of the cabinet subcommittee appointed for resurrecting the finance sector and managing agents who were appointed to oversee the operations of the company. With the stability brought in by these State-owned institutions, The Finance Company was able to attain a position of stability and sustainable growth.

Given the scale on how firms were affected during this time and while the competition was still finding a foothold within a stricken market, it has been a remarkable turnaround achieved by The Finance Company PLC in such a short period. The company is regarded by financial experts as a strong organisation in the financial services industry.

One of the most significant factors that have been instrumental in the turnaround is the new Board of Directors, which has taken charge of steering the organisation with a new vision. Led by a Chartered Accountant, Managing Director of Chemanex PLC and member of the Monetary Policy Consultative Committee of the Central Bank of Sri Lanka, Preethi Jayawardena, the group consists of other business personalities who are well respected in the industry.

R. Nadarajah (Director Seylan Bank PLC), Ajith Devasurendra (Deputy Chairman Brown and Co. PLC & Managing Director/CEO Taprobane Holdings Ltd.), Dr. T. Senthilverl, the well-known investor (Director Amana Takaful Insurance PLC, Citizens Development Business Finance PLC) and Anura Fernando (Former Chairman Ferntea Ltd. and Managing Director East Tech Consultants Ltd.) are the new Board Members.

The present Director and Chief Executive Officer Kamal Yatawara together with Executive Directors Nayana Rupesinghe, Violet Dissanayake and Tissa Ekanayake continue to serve in this dynamic new Board of Directors.

The share issue which was oversubscribed and concluded in January 2011 saw important changes within the ownership structure of the company. More significantly it was the positioning of main players in the State banking sector, namely, People’s Bank, Bank of Ceylon and Seylan Bank as the key shareholders of the company.

They being large banking organisations in Sri Lanka, the benefaction which is now extended to The Finance Company PLC, have been vital in instilling further the faith and confidence the         Sri Lankan public has in the organisation.

Undeniably this firm is now the only nonbanking financial entity in the country that has the support and strength of such principal State banking institutions.

The Finance Company PLC, which is a household name, has over seven decades of unmatched experience in the nonbanking finance sector serving the Sri Lankan public through a network of 60 branches spread islandwide.