6 July 2017 12:00 am Views - 1139
A forward-looking approach and a focus on the needs of every stakeholder have made it possible for Senkadagala Finance PLC to cross Rs.1 billion milestone in profit before tax and record Rs.1,119 million for the financial year 2016/17 with a growth of 26.8 percent over the previous year.
Profit after tax for the year improved to Rs. 861 million, a 40.4 percent growth. Consequently, profitability in terms of ROA and ROE too improved to 3.24 percent and 25.87 percent respectively.
The company has invested in the right technology at the right time while expanding its footprint, maximizing convenience to the customers and positioning the Company for sustainablegrowth. With a core capital adequacy ratio of 16.44 percent consequent to the successful rights issue of shares in April 2017, the company has sufficient leeway to expand its business in the years to come.
As elaborated in the Annual Report 2016/17, which is built on the theme of “Trust, Our Top Most Bottom Line”, the company believes that there is a strong correlation between its performance and stakeholders’ trust in it. A substantial portion of new business generated during the year was in fact achieved fromrepeat customers.
In his message in the recently released Annual Report, Ravi Dias, Chairman states that “It has been a good year for Senkadagala Finance. The performance has been sound and we have strengthened the company’s balance sheet. With the ongoing investments in technology, the dedicated team of employees and a strong management team, your company is well positioned to deliver increased and sustainable returns to the shareholders”.
Total assets of the company crossed the Rs. 30 billion. Milestone, reaching Rs. 30.919 Billion - a 38.8 percent growth. The fact that total assets crossed the Rs. 20 billion mark only one year ago makes this achievement all the more significant.
The Managing Director/CEO in his review in the Annual Report comments -“Inspired by the previous year’s performance and heartened by the persistently high credit demand, our company made heady developments in all areas of its operations during the year under review. While strategically expanding the reach around the country, we took measures to improve the credit evaluation, post sanction monitoring and recovery processes, further enhancing the quality of our assets portfolio.”
Gross non-performing loans ratio at 1.64 percent and provision cover at 82.29 percent, both far superior to the NBFI sector averages, bear testimony to the quality of the asset portfolio as well as to the ‘quality of the profit’.
“It is undoubtedly the result of the hard work, professionalism and dedication of our amazing team. I congratulate each and every one of them for passionately helping the company reach the milestone of Rs. 1 billion in PBT,” said Sanath Bandaranayake, Additional Chief Executive Officer.
Incorporated in 1968 and listed on the DiriSavi Board of the Colombo Stock Exchange in 2011, Senkadagala Finance PLC has grown to be one of the largest non-banking financial institutions in the country today. With a staff strength of approximately 700, the company offers a wide array of financial services island-wide through a network of 90 branches and service centres. Chaired by Ravi Dias, a veteran banker, the Board of the company comprises five executive directors and five independent non-executive directors.