Siyapatha Finance stands confident despite economic setbacks, reporting an outstanding performance during the first quarter of 2022 with favourable returns and increased revenue.
The Company recorded a Profit Before Tax (PBT) of Rs.608.0 Million in 1Q 2022 compared to Rs.395.9 Million in 1Q 2021, a growth of 53.6%. Resilient performance and improved credit quality helped strengthen the Company’s performance in the 1Q of 2022.
Efficient and professional initiatives by the Company also witnessed an improvement in the Cost to Income ratio to 34.06% during 1Q 2022 from 34.45% recorded in 1Q of 2021.
Effectiveness of the credit recoveries process is amply reflected in the improved 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 with a view to 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.
Annualized return on average assets (ROA) after tax also increased to 3.81% in 1Q 2022 from 2.59% in December 2021, while Annualized return on average equity (ROE) after tax increased to 26.07% in 1Q 2022 from 19.16% in December 2021.
The capital adequacy ratios were reported well above the regulatory minimum requirements and recording 14.10% as the Tier I capital ratio and 20.43% as the total capital ratio as at 31 March 2022.
Siyapatha Finance’s strong undisputed position was further reinforced by the rating of ‘A (lka)’; Outlook Stable, affirmed by Fitch Ratings Lanka Ltd.
“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 Mr. Sumith Cumaranatunga, Chairman, Siyapatha Finance.
Siyapatha Finance also marked a significant milestone in its journey with the construction of the new Corporate Headquarters in Colombo in order to facilitate the operations from a more centralized geographical setting. This state-of-the-art eighteen level building interlaced with modern technology will operate as the main hub aiming to enhance the overall Siyapatha experience for all stakeholders.
Moreover, Siyapatha Finance was recognized and certified as a great workplace in Sri Lanka by the independent analysts at Great Place to Work® and ranked among the top 10 in the Banking, Finance and Insurance Industries in Sri Lanka. The Company earned this credential based on extensive ratings provided by its employees in an anonymous survey conducted by Great Place to Work® during the year 2020 – 2021.
Another noteworthy achievement during the period was the receiving of the Transformation Excellence Award at the 2021 globally acclaimed Infosys Finacle Innovation Awards, endorsing the strength and excellence of the Company’s digital transformation ecosystem. Siyapatha Finance is the first company in the non-banking industry in Sri Lanka to implement a digital leasing operation with Infosys Finacle to improve efficiencies and deliver a fast service to its customer base.
Mr. Ananda Seneviratne, Managing Director, Siyapatha Finance 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.”
Siyapatha Finance PLC, a fully owned subsidiary of Sampath Bank PLC, is one of the most trusted premier financial service providers in Sri Lanka, providing services in Leasing, Loans, Gold Loans, Factoring, Fixed Deposits and Savings. With over 17 years of industry experience and performance, the organization has made significant strides to grow its business from strength to strength. Siyapatha Finance currently operates over 40 branches in principal cities and towns and maintains a staff of over 800 people.