Abans Finance PLC is a principal member of the prestigious Abans Group, the renowned household name in Sri Lanka. Through the backing of the Abans Group and the strong management team lead by CEO Dharshan Silva the company has been able to increase interest income, diversify portfolio risk, reduce funding cost, and improve collections to reach its best ever results in FY 2021 / 2022 by recording Rs 432 million PAT as Total Comprehensive Income, an Abans Finance press release said.
The release adds: ‘Further, total assets of the company exceeded Rs 10.4 billion. Over the last three-year period, EPS also has improved significantly in a consistent manner wherein the more recent FY 2021 / 2022 it is recorded as Rs. 6.46, and on previous FY’s (2020/2021 and 2019/2020) it was recorded as Rs 4.31 and Rs 1.55 respectively. The National Long-Term Rating of Abans Finance PLC is ‘A-(lka)’ RWN by FITCH Ratings Lanka Limited.
‘This progress has been made amidst the aftermath impact from political, economic, social, and legal perspective to business operation from COVID 19 pandemic. During the last 2 years company has successfully implemented concentric diversification in its products to regain the loss of top line and interest income, due to import bans of vehicles.
‘In terms of impairment charge of Rs 131 in FY 2021 / 2022 it mainly includes an impact coming from Economic Factor Adjustment (EFA) in calculating the loss ratio. During the year company was able to clear tax anomalies in previous years and cleared Rs. 319 million of contingent liabilities from the books thereby increased the valuation of the company as well.
‘FY 2021/2022 year was a challenging year to all our stakeholders. Despite all that dynamism in the market our team came together, to do their best to clients, which finally delivered an exceptional result to shareholders, and looking forward on continuing that record with a view to capitalise the opportunities ahead. Management believes that core to creating sustainable shareholder value in the longer term should be reached from a broad and diverse set of clients.’
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