Compared to the first quarter, Prime Finance PLC has shown a profit growth rate of 30% by September 30, 2018, and half yearly profit before tax of Rs.113 mn.
The company has also shown an income growth of 30%, reaching nearly Rs. 300 mn. The company maintained its net interest margin at 11%, which is well above the industry average owing to its strategic diversification of portfolio, mainly into secured property mortgages with a healthy interest spread, a media release from the company stated.
The Non-Performing Loan (NPL) ratio has systematically reduced below the industry average due to its focused recovery strategy and the measures adopted to improve the asset quality assessment by engaging a careful credit-evaluation process within the company’s strong Risk Management Framework. The efficiency of the company is reflected through the drastic improvement in cost to income ratio.
The company recently increased its capital base by way of a Rights issue to raise Rs. 864 million, and reached the core capital of Rs.1.5 bn, which is well above the present threshold of Rs. 1 billion stipulated by the Central Bank.
With the enhanced capital structure, the company prides itself in winning customer confidence for a sustainable growth in the future. The company plans to further improve its capital base within the next two years thus strengthening its balance sheet up to a 2.5 bn capital base.Prime Finance offers a range of financial products serving the needs of the SME sector and personal financial aspirations by being a ‘one-stop-shop’ for all financial needs - be it financing of a land, house/ apartment, a vehicle or fixed deposits by empowering Sri Lankans to reach their multi- dimensional aspirations through the ‘Prime Group’.
Prime Finance recently marked a praiseworthy milestone - an investment grade credit rating of BBB - stable outlook by Icra Lanka (Pvt) Ltd.
The CEO of Prime Finance, Rasika Kaluaarachchi said, “The business environment today is subject to rapid changes and therefore is very turbulent. So, being dynamic is about keeping pace in the ever-changing financial landscape and taking responsive action to meet emerging challenges successfully and surge ahead of the competition.”
“Our focus is strong and our strategies are aligned. Thus, we remain ready and committed to deliver ever-greater values to our stakeholders in a continuous and sustainable manner.
“By launching many strategic, operational and structural improvements, the company succeeded and will now look forward for further consolidation to maintain steadfast progress into the future, whilst embracing the exciting economic challenges and opportunities that await us,” he said.
Prime Finance PLC is powered by the ‘Prime Group’ headed by Group Chairman, B. Premalal.