Alliance Finance company PLC recorded a profit after tax of Rs 185 million with an impressive profit growth of 172 percent. A significant increase of Rs 117 million when compared to Rs 68 million in the previous year.
Increased income from leasing and gold loan products was the significant contributory factor in the increased profitability.
The Company sustained its growth momentum by recording an income of Rs 1.87 billion recording a growth of 22 percent compared to the previous year. It is a considerable improvement on the growth of 13 percent witnessed in the year 2009/2010.
Interest Income which is generated from the company's core business grew from Rs 1.16 billion in the previous year to Rs 1.4 billion in the year 2010/2011 with a growth representing an increase of 21 percent.
This had a direct bearing on the net interest income stimulating a growth of Rs 298 million recording a 121 percent increase compared to the previous year.
Of the Company's core products, leasing was a major contributory factor in achieving the interest income growth by a contribution of Rs 229 million with a 39 percent growth compared to the previous year's decline of 2 percent. Hire purchase, another core product had a income growth of Rs 15.8 million gold loans contributed Rs 65 million with a 53 percent income growth.
The results could be attributed to the emphasis made in increasing the leasing business due to the favourable duty rates for the automobiles during the year and also the declining interest rates.
During the rear consumer durable income decreased by Rs 27.6 million from Rs 37.7 million in the previous year.
As the customers favoured lease and hire purchase facilities the term loan income has shown a decline of Rs 11.3 million. However the loan portfolio recorded Rs 73.6 million income for the year, due to growth in the Gold Loan portfolio.
Other income, mainly gains from dealing securities, brought in an income of Rs 466 million and Rs 101 million over the previous year with a 28 percent growth. Rs 245 million income was generated from dealing securities for the year representing a growth of 35 percent.
With the increased market presence and the focused business expansion the Company's loans and advances grew by Rs 1.8 billion with a unprecedented growth rate of 46 percent, resulting in the total loans and advances increasing from Rs 3.9 billion to Rs 5.7 billion.
The leasing portfolio grew by 59 percent during the year under review with a Rs 1.39 billion increment to the portfolio. This impressive growth was achieved by strengthening the marketing staff who are deployed across the Island. The year end leasing portfolio was recorded at Rs 3.75 billion.
The Hire Purchase portfolio recorded a growth of 29.1 percent with an increment of Rs 283 million to the portfolio. The portfolio stood at Rs 1.25 billion as at balance sheet date compared to Rs 971 million in the previous year.
The loan portfolio also recorded a commendable growth of 33 percent with a growth of Rs 242 million during the year. The total portfolio ended at Rs 984 million as at balance sheet date. The term/pledge loans portfolio experienced a drop during the year, however Gold loans growth compensated for this impact. The Gold loan portfolio growth was Rs 212 million with an impressive growth of 41 percent.
source - www.dailynews.lk
No comments:
Post a Comment