Abans Finance, a member of the Abans Group, has registered a pre-tax profit of Rs. 51.5 million for the quarter ended June 30, compared to Rs. 36.3 million recorded in the corresponding period of 2015, achieving a year-on-year growth of 41.86 %.
The post–tax profit of the company for the quarter under review has also improved by 31.1%, from Rs. 26.12 million in Q1 2015 to Rs. 34.24 million in Q1 2016. The company has continued to increase its profitability amidst external challenges such as increasing interest rates and slow down in consumption.
Nevertheless, NII of the company recorded a remarkable increase of Rs. 58.8 million or 37.7 % during the period under review from Rs. 155.9 million in Q1 2015 to Rs. 214.7 million in Q1 2016, aided by the significant expansion of the asset-base of the company since Q1 2015, coupled with prudent liability management strategies.
Non fund based income (NFBI) which mostly comprises of fees, commissions and other fee based income decreased to Rs.12.9 million as opposed to Rs.15.0 million earned for the first three months of the year 2015, reflecting a decline of 13.8%.
A 380.1% growth was recorded in other operating income for the period under review as compared to the corresponding period in 2015. Other operating income earned during the first quarter of 2016 amounted to Rs. 4.5 million whereas Q1 2015 was only Rs.0.95 million.Operating expenses of the company which stood at Rs. 82.4 million for the first quarter in 2015, increased to Rs.109.5 million during the same period in 2016, reflecting a YoY increase of 32.8%. This increase was mainly due to the increase in personnel costs. However, the Cost to income ratio without VAT and NBT on financial services in Q1 2016 has improved to 47.1% from 47.8% recorded in the first quarter of the previous year.
Impairment charge on Loan and Receivables for the first quarter of the year 2016 amounted to Rs.60.2 million which is an increase of Rs.10.4 million as compared to Rs.49.7 million impairment charges recorded for the first quarter of the previous year. Despite these challenges, the company’s total asset base grew by 2.53% during the quarter (annualized 10.13%) and stood at Rs.6, 304.37 million as at 30 June 2016.
The post–tax profit of the company for the quarter under review has also improved by 31.1%, from Rs. 26.12 million in Q1 2015 to Rs. 34.24 million in Q1 2016. The company has continued to increase its profitability amidst external challenges such as increasing interest rates and slow down in consumption.
Nevertheless, NII of the company recorded a remarkable increase of Rs. 58.8 million or 37.7 % during the period under review from Rs. 155.9 million in Q1 2015 to Rs. 214.7 million in Q1 2016, aided by the significant expansion of the asset-base of the company since Q1 2015, coupled with prudent liability management strategies.
Non fund based income (NFBI) which mostly comprises of fees, commissions and other fee based income decreased to Rs.12.9 million as opposed to Rs.15.0 million earned for the first three months of the year 2015, reflecting a decline of 13.8%.
A 380.1% growth was recorded in other operating income for the period under review as compared to the corresponding period in 2015. Other operating income earned during the first quarter of 2016 amounted to Rs. 4.5 million whereas Q1 2015 was only Rs.0.95 million.Operating expenses of the company which stood at Rs. 82.4 million for the first quarter in 2015, increased to Rs.109.5 million during the same period in 2016, reflecting a YoY increase of 32.8%. This increase was mainly due to the increase in personnel costs. However, the Cost to income ratio without VAT and NBT on financial services in Q1 2016 has improved to 47.1% from 47.8% recorded in the first quarter of the previous year.
Impairment charge on Loan and Receivables for the first quarter of the year 2016 amounted to Rs.60.2 million which is an increase of Rs.10.4 million as compared to Rs.49.7 million impairment charges recorded for the first quarter of the previous year. Despite these challenges, the company’s total asset base grew by 2.53% during the quarter (annualized 10.13%) and stood at Rs.6, 304.37 million as at 30 June 2016.
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