The 3rd quarter forecast for 2010-11 financial year shows a consistent growth across all financial services and product categories of the company. Deposit new intakes have grown by 47% during the last quarter increasing the new deposits upto Rs. 300 million in a month. This is as a result of the confidence expressed by the depositors. TFC has also announced that 85% of its depositors are consenting to their deposits being renewed at maturity.
As a result of increasing the number of pawning centers across the island during the last six months, the pawning business has recorded a growth of 50% during the last quarter. In addition, one of TFC’s most recognized business ventures; the real-estate segment (land sales) has grown by a startling 173% giving a boost to the company’s overall revenue. A remarkable achievement in this category is the lowering of the turnaround period of new projects to an average of four months, This has resulted in a 30% net profit value within a period of four months. Due to the company’s dominance and experience in the real estate category, the real estate business of the company has taken a sharp up-turn with more than 300 blocks of land being sold in a month.
Discussing about the forthcoming share issue and the way-forward for the company, the Director / Chief Executive Officer, TFC, Kamal Yatawara said "I want to thank the depositors who stood-fast with the company during the times of crisis by maintaining their deposits with us. With all the financial discipline and the stringent management practices adopted during the last 12 months, we perceive 2011-12 financial year will be a turnaround year for TFC, with the share issue set to roll-out in January. Yatawara, whose sole responsibility is to reinstate the allure TFC enjoyed in the past, reflecting on its way-forward said "our investments (lendings) are growing with efficient credit policies that has reduced the NPL (non-performing loans) of new investments to a meager 0.2%. We continue to see a growth in the new investments made, where we have recorded a growth of 42% during the 3rd quarter. With the planned capital infusion, TFC’s aim is to be in the LKR 1 Billion profit category.
TFC’s strategic plans would mostly be centered on reclaiming the industry leadership the company enjoyed prior to 2008. Plans are on the way to further reduce operational costs and to improve the inflow of new funds through a clear market strategy and stronger market presence, positioning the company as being innovative and dynamic. The company’s on-going restructuring processes would allow it to gear up to these ambitious plans. The rationalization of branches and amalgamation of some divisions has helped to increase productivity of the organization by reducing operational costs by around 50%.
In an attempt to reward their loyal customers and to create a win situation for the depositors, TFC is allowing its customers who have been with the company and those who have made new deposits prior to September 2010 to convert 10% of their deposits into equity in order for them to enjoy capital gains as a mark of gratitude for their loyalty.
"With the recent developments in th economy there will be ample business opportunities coming up in the financial sector in the near future. TFC is ready to reap benefits of these opportunities through the recapitalization exercise," said Yatawara.
source - www.island.lk
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