Softlogic Financial Services posts Rs. 118 m profit after tax in FY 2011

Tuesday, 31 May 2011 00:00 - - {{hitsCtrl.values.hits}}

Softlogic Capital Limited and its subsidiaries have recorded a consolidated profit after tax of Rs. 118 m for the year ended 31 March 2011, with the gross income of the main subsidiary Softlogic Finance PLC growing 88% to reach Rs. 650 m from Rs. 346 m a year ago. The financial services arm of the Softlogic Group has gone from strength to strength over the last year since its acquisition by the dynamic conglomerate.

Softlogic Finance’s total lending portfolio as at the quarter ending 31 March was declared at Rs. 3.78 b compared to that of Rs. 1.55 b the previous year, an impressive growth of over 243%.

With the company’s lending clientele concentrated in the SME sector and fairly diversified geographically through its branch network, Softlogic Finance also managed to maintain the quality of its lending portfolio at industry benchmark levels, keeping non-performing loans at less than 2% of the total portfolio.

The total assets of Softlogic Capital rose from Rs. 2.56 b last year to Rs. 5.4 b this year, an increase of over 210%. With their main lending activities of Leasing, Hire Purchase and Term Loans thriving under the wing of the Group, Softlogic Finance also added several new services to its portfolio during the last quarter including Business Loans, Group Personal Loans and Gold Loans.

Softlogic Finance’s total deposit portfolio nearly doubled during the last financial year, passing the landmark of 1.5 b deposit liabilities by the end of the year. The company also recorded a threefold increase in its other borrowings mainly from the banking sector and through securitisation of its Leasing and Higher Purchase receivables, and strengthened its capital base towards the end of last year through a Rights Issue of shares to support the growth of its lending activities.

“We are aggressively driving to expand our presence in the financial services sector over the next few years,” said the Chairman of Softlogic Finance Ashok Pathirage, commenting on the future plans of the company. “The geographical coverage of Softlogic Finance will be consolidated through the expansion of our branch network as well as our network of business development centers. We are ready to face the challenges of the market and will continue to push for phenomenal growth in terms of both presence and performance in the next financial year too.”

A foothold in the financial industry adds a new facet to the group’s portfolio and the entry of the group into the financial services sector is the ideal strategic fit in offering the retail and SME customer both personal and business financial solutions through the Softlogic Finance branch network of 11 branches spanning around the country, as well as the Softlogic stores that will soon expand island-wide.