The Finance cuts losses in June quarter

The troubled The Finance Company PLC (TFC) was able to narrow its losses by 40 percent year-on-year (YoY) to Rs.373.3 million in the June quarter (1Q16), the interim financial accounts released to the Colombo Stock Exchange showed.

The loss per share declined to Rs.2.33 from Rs.3.91.

The company reported a net interest i ncome of Rs.606.7 million, up 35 percent YoY, and the net interest expenses increased at a lower pace of 5 percent YoY to 843.8 million. The net interest expense was Rs.237.1 million, up 33 percent.

However, on a positive note, the net fees and commission income rose 199 percent YoY to Rs.14.2 million. The company was also able to reduce its total operating expenses by 70 percent YoY to Rs.83.6 million. For the quarter under review, TFC reported an impairment reversal of Rs.5.5 million against an impairment charge of Rs.65.4 million YoY.

The company was able to contain its personal expenses which edged up just 1 percent YoY to Rs.149 million.

TFC recorded a loan growth of Rs.150 million for the quarter, a growth of 3 percent. Financial liabilities due to customers increased to Rs.28 billion from Rs.27.6 billion.

The total assets of the company edged up to Rs.24.78 billion from Rs.24.6 billion.

The accumulated losses increased to Rs.17.24 billion from Rs.16.87 billion.

The company doesn’t have a controlling shareholder. High-net-worth investor Dr. T. Senthilverl as at June 30, 2015 held a 21.5 percent stake as the single largest shareholder.