Orient Finance PLC, which is a licensed finance company, has recorded a remarkable achievement at a time it celebrated 35 years in operation. The company was able to record the highest ever total income of Rs.3.3 billion during the financial year ended March 31, 2017 achieving 40 percent growth over the last financial year. This is a remarkable achievement amidst tough macroeconomic factors. This was supported by the increase of net lending portfolio by 18.6 percent to record as Rs.16.4 billion by the year end.
The net interest income also grew by 14 percent recording Rs.1.29 billion net interest income. The growth of the net interest income is lesser than the total income growth rate due to the narrowed margin owing to the increase of market interest rates during the year.
The company has recorded profit before tax of Rs.301 million even though the borrowing rates were higher than the previous year. The company was able to maintain its overhead costs with a marginal increase and the provision for impairment is lesser than the previous year. Orient is within the first 15 in terms of total assets amongst the licensed finance companies. The company has smoothly transitioned into normal operations after the consolidation took place two year ago. Total assets of the company stood at Rs.19.4 billion while the total deposits from customers was recorded as Rs.9.6 billion, up from Rs.9.2 billion in the previous year.
The company signed several memorandums of understanding (MoUs) with vehicle agents and dealers to ensure guaranteed business and many joint marketing campaigns were launched including in the Middle East. This has resulted positive results, which is evidenced by the increased portfolio.
The company has an islandwide branch network comprising 30 business centres and most of these are outside the Western Province. The company’s product range includes leasing, fixed deposits and savings, business loans, debt factoring and pawning.
Commenting on the overall results of the company, Chairman Dr. Dayanath Jayasuriya PC went on to say that the strategic initiatives taken by the company have resulted in the commendable growth of its revenue surpassing Rs.3 billion and marketing strategies have led to an increase in its lending portfolio and fixed deposit base despite unfavourable macroeconomic factors.
CEO Mayura Fernando stated that the company plans to further expand its business operations over the next few years whilst increasing the customer focus and adding more value to its customer base in terms of product features and service excellence.