The Finance Company (TFC) said this week it has made steady and measurable growth during the financial year 2007/08 with a dividend of 18% being announced at the Annual General Meeting held last week.
The company recorded a net revenue of Rs. 11.3 billion and a net profit of Rs.663 in the financial year 2007/8, against Rs. 10.98 billion in the previous year. “The narrowing of margins in financing real estate, increase in cost of borrowings due to upward movements in the treasury bill rates have (however) affected the profitability of the company,” TFC said in a statement.
Yet the relatively strong position has allowed the company to move cautiously in line with a strategy, while managing the business in extreme tight conditions. “In this context the company’s performance has been good,” the company said. The deposit base increased from Rs. 21.8 billion to Rs. 28.6 billion in the corresponding years, during a time when most finance companies did offer high interest rates to attract deposits. “The Finance Company did not follow this and as a result has been able to maintain interest margins at satisfactory levels under the circumstancesm,” it said. “We will continue to sow the seeds of empowerment and influence ethical corporate citizenship” said Ms. P.K. Karunanayake, Joint Deputy Managing Director/CEO of The Finance Co, in the statement.
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