Alliance Finance raises Rs. 1 b in debt

Tuesday, 12 October 2021 02:23 - - {{hitsCtrl.values.hits}}

Alliance Finance Company PLC has raised Rs. 1 billion in debt to boost its business volume.

The company said it raised a subordinated loan which qualified under the Tier II capital.

As of 30 June, Alliance Finance’s Tier 1 Capital adequacy ratio was 11.52% up from 9.74% a year ago whilst minimum requirement is 6.5%. Total capital adequacy ratio was 14.28% up from 12.78% in 1Q 2020 whilst the minimum requirement is 10.5%.

In 1Q of FY21, Alliance net profit attributable to equity holders of the parent was Rs. 33.8 million, up by 51% from a year ago. Group pre-tax profit was Rs. 66.7 million, marginally down from Rs. 68.5 million. Operating income rose by 23% to Rs. 1.3 billion in 1Q.

Assets as at 30 June was Rs. 34 billion of which lease rentals were Rs. 19.7 billion and loans and advances were Rs. 7 billion, whilst liabilities were Rs. 28 billion of which due to customers was Rs. 14 billion. It had retained earnings of Rs. 2.3 billion.