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Siyapatha Finance Soars Above And Beyond According To Financial Results Of 2017

2018-03-20 16:27:43
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Mr. Channa Palansuriya , Chairman,  Mr. Saman Herath , Managing Director
 
 
Net profit growth : 52%
Net Interest Income Growth : 51%
Asset base growth : 43%
 
Siyapatha Finance, the largest subsidiary of the Sampath Bank Group proudly announced the company’s 2017 year-end financial results recently. Siyapatha Finance has recorded an outstanding financial performance during the year with promising results shown in all aspects of the business,thus,securing a leading position in the financial services industry for the company.
 
Siyapatha Finance enjoyed an after-tax profit of LKR 498.86 million with a recorded growth rate of 52% in comparison to the LKR 327.28 million reported in 2016, as reported in the company’s financial results of 2017. 
 
Under Gross Income, the company’s total interest income grew exponentially by 62% year on year to record an impressive LKR 4.6 billion in 2017. This was made possible by the improvement in business volumes, which enabled the company to achieve significant strides in its business segments of leases and loans whilst managing risk and return at both product and business levels.
 
The growth in profitability was attributed to the significant increase in Net Interest Income (NII), Net Fee & Commission Income. The year on year growth in NII was 51% in 2017, generating a NII of LKR 1.84 billion in comparison to the LKR 1.22 billion gained during the previous year.Meanwhile the increased profitability levels drove up the Return on Assets (ROA) to 1.91% and Return on Equity (ROE) to 23.05%, which was respectively 1.81% and 18.35% in 2016.  
 
In 2017 the Company reached a significant milestone with the asset base reaching LKR 29.81 billion. This reflects a growth of 43% over the year 2016 and a CAGR of 33% over the last 5 years. The company has significantly increased its lending portfolio surpassing the industry growth averages which is noteworthy given the challenging business environment that prevailed in 2017.
 
Siyapatha Finance introduced loans to its product portfolio in the second half of 2016, and in the year under review a net growth of LKR 1.98 billion was achieved, marking an increase of 266%,which is a significant achievement within the second year of operations. Leasing/ Hire purchase expanded by LKR 5.4 billion, reflecting a 37% growth since 2016 with a total portfolio of LKR 20.12 billion, whilethe Gold Financing portfolio stood at LKR 2.56 billion recording an augmented growth of LKR 794 million (an increase of 45%). The contribution by Gold Financing remained at 9% against total advances. 
 
The importance of customer deposits in the compositional mix of total funding has increased to 36% from 19% in 2016. Deposits grew by LKR 5.97 billion, recording a growth of 178% over the preceding year. This reflects the trust placed by the depositors in Siyapatha Finance. 2017 saw a significant improvement of 28% in shareholder funds. 
 
As of 31st of December 2017 capital adequacy ratios are 9.44% for Tier 1 and 14.16% for Tier 1 and Tier II (Siyapatha Finance is well above the CBSL’s prescribed minimum thresholds of 5% and 10% respectively)The total capital adequacy ratio has increased to 14.16% from 13.93% in 2016, which was supported by the subordinated debentures of LKR 1.0billion issued to strengthen the capital base of the company.
 
The Chairman of Siyapatha Finance, Mr.Channa Palansuriya, expressing his views on the financial results stated,“We are delighted by the significant improvements that our financial results have revealed and it is very encouraging to see all our hard work bear such fruit. The various changes and additions we have made have brought in extremely positive results and I am confident that Siyapatha Finance will continue to grow in numbers, innovation and customer service”. 
 
“We at Siyapatha Finance are extremely proud of our financial results for 2017. We are especially happy with the 178% growth of deposits and the noteworthy improvement of shareholder funds. These are testament of the customer’s growing confidence in Siyapatha Finance. I have always believed that the success of our organization is deeply rooted in our customers and our ability to serve them in the best possible way”, said Mr. Saman Herath, the Managing Director of Siyapatha Finance. 
 
Siyapatha Finance PLC offers a vast range of financial products including, Fixed Deposits, Leasing, Hire Purchase, Property Loans, Business Loans, Personal Loans, Factoring and Gold Loans .Siyapatha Finance operates with a fully-fledgedbranch network of 26 branchesacross the country for the convenience of customers.

* Dailymirror.lk neither liable nor responsible for any information / contents published in this article


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