Multi Finance PLC recorded a 120% increase in its bottom line in the first quarter ended June 30, 2014 recording a net profit of Rs. 8.6 Mn, against Rs. 39.2 Mn loss in the preceding quarter 2013, as per published accounts.
A press release says: ‘During the quarter under review, net income from operations reached Rs. 56.2 Mn, 236% growth compared to the quarter ended June 2013 which was recorded as Rs. 16.7 Mn. The net interest income for the quarter ended 06/14 also increased with 215% reaching Rs. 50.5 Mn, compared to Rs. 16.0 Mn QonQ owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 32.3 Mn as against Rs. 40.3 Mn QonQ which is a 19.8% improvement owning to strict cost control mechanisms adopted.
‘During the period company’s net impairment has remained in the same range despite the significant increase in its lending portfolio and increase in impairment of pawning which stands at Rs. 16.5Mn. Further NPLs on leasing, HP and loans have come down to 4.42% quarter on quarter due to aggressive recovery techniques and strict monitoring process adopted by the company. Earnings per Share of the company have improved from -6.98% to 1.53% within the quarter while improving the company’s quality of the asset portfolio. Return on equity has improved to 2.6% from -12.34% and Return on Assets is up by 121% from -2.84% to 0.60% QonQ in line with the profits.
‘The company’s total assets grew by 3.5% to stand in excess of Rs 1.38 Bn as of 30thJune 2014 and the deposit base grew by 9.8% over the same quarter of the previous year displaying the investor confidence placed on the company.
‘Commenting on company’s improvement, Multi Finance Chief Executive Officer Pushpike Jayasundera said the introduction of prudent credit policies, risk management tools and stringent recovery processes were the key factors contributed for this significant results in the quarter. These results were achieved in the midst of interest rate pressures and slowdown in credit growth which was common to the industry during the period concerned.
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A press release says: ‘During the quarter under review, net income from operations reached Rs. 56.2 Mn, 236% growth compared to the quarter ended June 2013 which was recorded as Rs. 16.7 Mn. The net interest income for the quarter ended 06/14 also increased with 215% reaching Rs. 50.5 Mn, compared to Rs. 16.0 Mn QonQ owning to improvements in quality lending and strict credit processes introduced. Operating expenses of the company fell to Rs. 32.3 Mn as against Rs. 40.3 Mn QonQ which is a 19.8% improvement owning to strict cost control mechanisms adopted.
‘During the period company’s net impairment has remained in the same range despite the significant increase in its lending portfolio and increase in impairment of pawning which stands at Rs. 16.5Mn. Further NPLs on leasing, HP and loans have come down to 4.42% quarter on quarter due to aggressive recovery techniques and strict monitoring process adopted by the company. Earnings per Share of the company have improved from -6.98% to 1.53% within the quarter while improving the company’s quality of the asset portfolio. Return on equity has improved to 2.6% from -12.34% and Return on Assets is up by 121% from -2.84% to 0.60% QonQ in line with the profits.
‘The company’s total assets grew by 3.5% to stand in excess of Rs 1.38 Bn as of 30thJune 2014 and the deposit base grew by 9.8% over the same quarter of the previous year displaying the investor confidence placed on the company.
‘Commenting on company’s improvement, Multi Finance Chief Executive Officer Pushpike Jayasundera said the introduction of prudent credit policies, risk management tools and stringent recovery processes were the key factors contributed for this significant results in the quarter. These results were achieved in the midst of interest rate pressures and slowdown in credit growth which was common to the industry during the period concerned.
www.island.lk
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