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Monday, January 30, 2023

Siyapatha Finance PBT grows by 53.6% – The Morning

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Siyapatha Finance PLC  reported a profit before tax (PBT) of Rs. 608 million in the first quarter (Q1) of  2022 compared to Rs. 395.9 million in Q1 2021, a growth of 53.6%. 

A cost to income ratio to 34.06% during Q1 2022 from 34.45% was recorded in Q1 2021.

The effectiveness of the credit recovery process is amply reflected in the improved nonperforming loan (NPL) ratio of its key lending product, “leasing”, which stood at 9.31% at the end of March 2022, in comparison with 12.06% at the end of 31 December 2021. The company has also been meticulously monitoring overdue facilities in view of identifying customers who face genuine difficulties.

Siyapatha Finance’s total assets grew by 6.7% to reach Rs. 45.6 billion at the end of 31 March 2022, an increase from Rs. 42.7 billion at the end of December 2021. In spite of the prevailing challenging economic environment, the net loans and advances grew by 5.5%, reaching a notable Rs. 38.7 billion.

The deposit base of the company was maintained at a steady level of Rs. 16.6 billion, thus reflecting the trust and confidence inspired by the company among fund managers, retail depositors, and the corporate sector that continue to invest substantially in fixed deposits.

The annualised return on average assets (ROA) after tax has also increased to 3.81% in Q1 2022 from 2.59% in December 2021, while the annualised return on average equity (ROE) after tax increased to 26.07% in Q1 2022 from 19.16% in December 2021.

The capital adequacy ratios were reported well above the regulatory minimum requirements and recorded 14.10% as the Tier I capital ratio and 20.43% as the total capital ratio as at 31 March 2022.

“These outstanding results achieved in the first quarter gives us the confidence to endure in performance going forward. We are grateful for the unwavering trust and support of our customers, investors, and other stakeholders throughout this challenging period and will continue to deliver on our promises to our customers, community, and shareholders as we grow from strength to strength,” stated Siyapatha Finance Chairman Sumith Cumaranatunga

Siyapatha Finance Managing Director Ananda Seneviratne said: “Siyapatha Finance continues to display remarkable resilience and growth even amidst the prevailing challenges in the external environment. Our financial performance has spoken volumes about the company’s strength and stability. This stellar performance is a clear testament of the company’s resiliency, foresight, agility, and the growing capability to generate strong financial performance even amidst challenging conditions.” 


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