The statement noted that 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 its key branches to more strategic locations to maximise its potential and the service to customers.
Customers in Batticaloa, Vavuniya, Maharagama, Nelliady, Polonnaruwa and Anuradhapura now enjoy greater convenience and ease in fulfilling their financial needs. The branch relocations also saw a triumphant return to their own premises in Jaffna which was the firm’s first branch to be opened in the country back in 1976. Furthermore, as a part of the overall brand strategy to enhance the corporate brand image a facelift was given to many branches situated all over the country.
“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 the Governor and all senior officials of CBSL at the unveiling of the new The Finance Jaffna Branch building reflects the faith placed by regulator,” the statement noted.
It continued: “The investment area of business has been impressive with accelerated growth of 123% 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 1% of financial investments done during the last three years.
“The pawning business of the company, which was tagged as an exceptional contributor to the firm’s revenues have exceeded internal expectations and recorded an astonishing growth of 237% year on year, justifying the decision to open pawning centres islandwide including the north east.
The newest pawning centres that opened were in Batticaloa, Trincomalee, Vavuniya and Maharagama totalling the overall figure of pawning units to 36.
“The Finance, being a market leader in real estate, has recorded an increase of 350% 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% bringing the annualised profit to almost 75%, with an average turnaround period 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 oppose to creating prices, which is a result of the bargaining power the company has at the time of purchase and adding value. This shows that The Finance Co. PLC has the best expertise in the real estate business in Sri Lanka.”
The statement pointed out that The Finance concluded operations for the month of April on a high note, recording a remarkable inflow of fresh deposits of over Rs. 1 billion. “This is a clear indication of the level of public confidence placed on the organisation. A high growth of 170% was seen in the new deposit intake compared to the previous financial year. Savings deposits too have seen an increase of 54% over the previous financial year, attributed to in no small measure, the upcoming re-launch of The Finance-Seylan Bank co-branded Debit Card which will add more convenience and value additions to the customers. The company holds 50% market share in savings amongst the entire registered finance companies at present.”
“Whilst achieving immense success this year from their business operations, the management is working with a internationally-renowned strategic consultancy firm, MTI Consulting, to come out with a clear strategic directional plan for the company.
They are confident that the reviews conducted by the firm would no doubt play a role in further optimising their operations whilst reducing cost in many areas with the centralising of back office functions, etc., giving more quality time for front line staff to serve the customer needs better and more efficiently. This will certainly enable the company to face challenges and reach even greater heights in the industry,” the statement added.
The Finance Company PLC has over seven decades of unmatched experience in the non-bank finance sector serving the Sri Lankan public through a network of 60 branches spread islandwide, it noted.