Singer Finance PAT grows 80% in 3rd Quarter

Singer Finance recorded impressive financial results for 3Q FY 2011/2012, recording a Net Profit Before Tax of Rs. 57.4 m, is a growth of 80 percent over the previous year, and Rs. 154.9 m for the nine months ending in December 2011, which represents a growth of 73 percent over the previous year.

The company’s income increased by 34 percent in the third quarter from Rs 252 m to Rs 338 mn while the income for nine months ending December 2011 increased by 25 percent from Rs 725 to Rs 903 m. The company’s numbers were buoyed by an increase in the Leasing and Hire Purchase portfolio, which accounted for 68 percent of revenue for the last quarter and 61 percent of revenue for the nine month period ending in December 2011.

CEO of Singer Finance (Lanka) PLC, Shantha Wijeweera said, “We’ve displayed an admirable ability to control costs in relation to revenue, demonstrated by an operating costs-to-income ratio of 42 percent – down from 47 percent last year in the same quarter and 42 percent - down from 44 percent in nine months last year.”

Further augmenting the numbers were the company’s low Non-Performing Loans (NPL) Ratio, which stood at 0.3 percent during the 3Q FY 2011/2012.

The NPLs are among the lowest in the industry. The Risk Weighted Capital Ratio of 18.75 percent too is well above the minimum regulatory requirement of 10 percent Singer Finance has zero exposure to shares and the stock market and is totally unaffected by the decline in share prices experienced currently.

“During the nine month period, we added three Service providing locations to the branch network.

Two of them are in previously untapped markets such as the Northern Province (Vavuniya) and Eastern Province (Ampara)”, said Wijeweera.

Singer Finance (Lanka) PLC was listed on the main board of the Colombo stock exchange and currently 24.99 percent of Shares are held by the public.