Prime Finance consolidates on upward momentum
View(s):Prime Finance PLC has completed the second quarter of its 2018/2019 financial year with good progress, by adopting the most productively well-informed, optimistic and pragmatic strategic direction.
“Compared to the 1st quarter, the company has shown a commendable profit growth rate of 30 per cent by end September 2018, and half yearly profit before tax of Rs. 113 million. The company has also shown an income growth of 30 per cent, reaching nearly Rs. 300 million. The company was able to maintain its net interest margin at 11 per cent, which is well above the industry average owing to its strategic diversification of portfolio, mainly into secured property mortgages with a healthy interest spread,” the company said in a media release.
The Non-Performing Loan (NPL) ratio has systematically got reduced below the industry average as a consequence of a focused recovery strategy and adopting measures to improve the asset quality assessment by engaging a careful credit-evaluation process within the company’s strong Risk Management Framework.
The company recently increased its capital base by way of a Rights issue to raise Rs. 864 million, and consequently reached the core capital of Rs.1.5 billion, which is well above the present threshold of Rs. 1 billion stipulated by the Central Bank. The company plans to further improve its capital base within the next two years thus strengthening its balance sheet up to a Rs. 2.5 billion capital base.
Company CEO Rasika Kaluaarachchi was quoted in the release as saying: “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 in order to meet emerging challenges successfully and surge ahead of the competition”. Prime Finance PLC is part of the Prime Group whose chairman is B. Premalal.