The Finance Co records impressive growth in 2012

The Finance Company PLC, has capped a strong period with an impressive performance in their business activities at the end of the financial year 2011/12. This follows the company's fasttracked return to a remarkable growth last year.

This upward trend had been boosted by a consistent execution of the company's strategic plan set up after the infusion of fresh capital.

Among these were branch expansion plans that included relocating a number of their key branches to more strategic locations to maximise its potential and the service to customers.

In addition to the backing of prominent State banking institutions such as People's Bank, Bank of Ceylon and also Seylan Bank as shareholders of the company, the Central Bank of Sri Lanka, the regulator of the industry also extends its patronage and support to its endeavours.

The presence of Governor Ajith Nivard Cabraal and all senior officials of CBSL at the unveiling of the new The Finance Jaffna Branch building reflects the faith placed by regulator.

The investment area of business has been impressive with accelerated growth of 123 percent during the financial year.

Special emphasis on mitigating credit risk and providing more stringent controls and credit policies has had a tremendous improvement in credit quality maintaining a NPL ratio of around one percent of financial investments done during the past three years.

The pawning business of the company which was tagged as an exceptional contributor to the firm's revenue has exceeded internal expectations and recorded a growth of 237 percent year on year, justifying the decision to open pawning centres islandwide including the North and the East.

The Finance has recorded an increase of 350 percent bringing in Rs. 2.7 billion in real estate sales in comparison to last year.

Recent land projects of the company have been sold with an average profit margin of 24 percent bringing the annualised profit to almost 75 percent, with an average turnaround of four months.

All new projects done during the period have brought very good returns whilst giving the customer an opportunity to own a block of land with good infrastructure at a reasonable price as opposed to creating prices, which is a result of the bargaining power the company had at the time of purchase and adding value.