Orient Finance has achieved a significant turnaround in its financial performance for the year 2023/24, recording a Profit after Tax of Rs. 348.53 million—an impressive growth of 584 percent compared to the previous year’s loss of Rs. 72 million. 

Total assets increased by 17 percent to Rs. 20,477 million, reflecting accelerated growth that has surpassed industry average of 8 percent, driven by the company’s dynamic approach to portfolio expansion and risk management.

Orient Finance’s Net Interest Income recorded an impressive increase of 81 percent to Rs. 1.79 billion, fuelled by higher loan disbursements and improved interest margins, reflecting effective management of lending activities and enhanced profitability in core business operations. Additionally, Non-Interest Income rose by 17 percent to Rs. 266 million, supported by strong performances in fee-based services. This underscores the company’s diversified revenue streams and its ability to capitalize on market opportunities beyond traditional business activities.

The company has also achieved a commendable improvement in its Cost-to-Income Ratio, which decreased to 66.53 percent from 93.44 percent in the previous financial year. Furthermore, the Return on Equity improved significantly to 10.13 percent, up from -2.18 percent in the preceding financial year.

The company’s loan portfolio expanded by 21 percent to reach Rs. 15,659 million, as a result of robust contributions from the SME and microfinance sectors. This growth reflects Orient Finance’s strategic focus on diversifying and expanding its loan portfolio while maintaining prudent risk management practices. The company has successfully maintained a high-quality portfolio, ensuring that Non-Performing Loan (NPL) levels remain below industry averages throughout the period.

Rajendra Theagarajah, Chairman of Orient Finance PLC noted that through strategic initiatives the entity not only achieved strong financial results but also enhanced its operational efficiency and customer satisfaction, despite the economic challenges faced in Sri Lanka.

“By re-engineering our processes and focusing on sustainable growth, we’ve positioned ourselves for continued success. Looking ahead, we remain committed to innovation, customer-centric solutions, and strengthening our brand. Our strategic priorities include leveraging digital technologies, expanding our product offerings, and consolidating our market position. With a solid foundation and a clear vision, we’re confident in our ability to thrive in the years to come,” he said.

K.M.M. Jabir, Director / CEO of Orient Finance PLC added that efforts in enhancing customer engagement, expanding our branch network, introduction of new financial products tailored to specific market segments, and strengthening risk management have  a 23 percent increase in our customer base, reaching 51,557. 

“Additionally, our strategic expansion of branches and a comprehensive digital transformation have solidified our market position and competitive edge. We hope to continue to build on this approach and deliver the best to all our stakeholders,” he said.