Central Finance continues steady growth

In the backdrop of current macro economic challenges in Sri Lanka, Central Finance Company PLC (CF) has reported successful operational results, for the 9 months ended December 31, 2008.

Total assets stood at Rs. 31.2 billion as compared with Rs. 29.4 billion in 2007 (April-December) while deposits increased from Rs. 12.3 billion to Rs. 13.3 billion.

Highlights for the period under review were an increase of 16 percent in income over the comparable period generated through its core business activities.

Profit before tax was 1.04 billion (increase of 6.4% over corresponding period), while after tax profits recorded a marginal (0.9%)drop due to higher taxation (Rs. 316 Million compared to Rs. 214 Million). Sound treasury management practices have resulted in containing funding costs at 22%, which is significantly better than its peers.

Despite the expansion of business activities, overhead cost increases have been contained to a mere 6.7% (of which 2.1% includes VAT on financial services) over the comparable period.

Shareholder funds continued to grow recording an increase of Rs. 660 Million and stands at Rs. 6.825 Billion.

Fitch Ratings Lanka, recently affirmed the Company's National Long-term rating at `A+ (lka)' with the comment `The Outlook is Stable'. "Well defined credit policies and stringent recovery procedures have translated into asset quality that is amongst the best in Registered Finance Company (RFC) sector in Sri Lanka," Fitch Ratings stated.