Stringent control of credit quality has ensured that the company retains one of the lowest non-performing loan ratios in the industry which was recorded at 1.7 per cent on a gross basis and net NPL of 0.9 per cent, Softlogic said in a statement.
Post-tax profit rose to Rs 164 million from Rs 120 million in the previous year. The company said it has set up the distribution infra-structure necessary for the current phase of growth that will cover the next three years.
The network comprises 17 Branches around the country and 24 standalone Gold Loan centres.
According to the statement, the performance of the company has been admirable despite the tough conditions along with what has been a rather difficult year for the industry as a whole. The industry had been impacted by liquidity diminishing substantially for the most part of the year that effected fund mobilizing activity and therefore restricted growth of advances. This coupled with rising interest rates had affected the net interest margin of the company as deposit re-pricing had to be undertaken at higher rates that also reduced profitability.
We are extremely positive about the prospects for the financial services industry in the coming years and have put in place a combination of dynamic resources and branch infrastructure at Softlogic Finance that is set to deliver superlative results. The signal for lower interest rates will further improve business prospects and we look forward to developing the all important SME sector that is at the centre of our business strategy, said Ashok Pathirage, Chairman of Softlogic Finance.