Nation Lanka Finance PLC recorded an impressive performance for the 2018/19 financial year, attributed to an increase in the lending portfolio and the operating income driven by management strategy changes.
Despite several macroeconomic and regulatory setbacks, the company’s growth came on the back of far sighted and timely management strategies to shift its focus to asset backed lending products, streamlining and efficiency improvement of all key processes through technology and thanks to a series of human resource strengthening across the branch network.
The Company reported a Rs.167 million profit in the current year recovering from a negative Rs. 51 million in 2017/2018 FY, according to the Company’s Annual Report released last week.
“Despite challenges, Nation Lanka Finance has maintained a positive sentiment and recorded a reasonable year of performance,” said Victor Ramanan, Chairman (Non Executive) of Nation Lanka Finance PLC, releasing its 2018/2019 annual report at the recent press briefing on the Company’s annual report release.
The lending portfolio of the company was the biggest contributor to its growth, with leasing and hire purchase leading the increased revenue board. In 2018/2019 FY leasing grew by 175 percent, from 569 million rupees last year to 2.3 billion rupees in the year under review.
Hire purchases grew by 68 percent, from 113 million rupees last year to 190 million rupees in the current year. The company also benefited from the net interest income of 1.2 billion rupees in 2018/19 FY.
During the financial year that ended, the company also managed to tackle Ceylinco Towers and First Lanka Treasuries that posed some difficulties in divestment due to inherited complexities. While First Lanka Treasuries was disposed of, Ceylinco Towers was rebranded under a new Board.
“The year was particularly challenging where political uncertainties, exchange rate fluctuations and implementation of SLFRS based provisions as well as market instabilities that affected the overall finance sector performance throughout most of the year and in the final quarter of the year regulatory pressures affected the Company’s overall performance,” said CEO of Nation Lanka Finance, Jayantha Perera.