TFC makes Rs.364mn net loss: EPF remains 4th largest shareholder

The Finance Company PLC (TFC) incurred a net loss of Rs.394 million for the three months ended June 30, 2012 as against the profits of Rs.26.4 million during the same period of 2011, interim financials released to the Colombo Stock Exchange revealed.

The company was involved in a tainted stock market deal in last May and statecontrolled pension f und, Employees' Provident Fund held 8.4 percent of the firm as at June 30, 2012.

Loss per share of the company stood at Rs.2.46 during the period in consideration in contrast to earnings per share of Rs.0.16 during the previous year's three months under review.

Interest income of the com- pany increased to Rs.524 million during the 1Q13 from Rs.476 million during 1Q12. However, the firm recorded a negative book value of Rs.26.60 per share as at June 30, 2012.

Sri Lanka's Central Bank, during the last quarter, informed the public that TFC is a stable firm and therefore not to be misled by statements made by politically motivated persons.

Meanwhile, the company stated that it was embarking on a path towards profitability, after a period of rather steep losses reported before the restructuring.

According to the Central Bank, TFC is today among the top five finance companies in the country in terms of its asset base.

The Monetary Authority also pointed out that TFC is currently implementing a restructuring plan approved by the Monetary Board and owing to this plan, the company has been able to increase its total deposits by 5.36 percent and its total lending portfolio by 11 percent from April 2011 to April 2012.