The 2019 financial year was characterized by a subdued overall economic growth as a result of several challenges faced by the country as well as worldwide. The Non-Banking Financial Institutions (NBFI) sector recorded a negative credit growth that mirrored the macro economic conditions that prevailed at the time.
Regardless of the fragile performance of the sector, Siyapatha Finance recorded a robust asset growth of 13%, coming close to the projection for the year despite the unfavorable circumstances of the time.
The company’s profit before taxes grew by 7%, whereas the top line saw an increase of 13%, ending the year with equanimity. Profit after tax for the second half of the year reflected a growth of 164% over the first six months of the year.
The successful performance was achieved as a result of shifting the focus on to two key market segments in which Siyapatha Finance holds high levels of competency. Consequently, Micro Leasing was added to the core business areas of Leasing and Gold Loans. Micro Leasing caters to a segment that has high potential and represents a majority of enterprises in the country, including small and medium businesses.
The assurance of trust that customers of Siyapatha Finance have experienced since inception was reflected by the successful mobilization of Rs. 1.5 billion through a listed subordinated debenture issue. The rated, unsecured subordinated, five-year debenture issue had an initial tranche of Rs. 1 billion with an option to raise by Rs. 500 million, in the event of an oversubscription of the initial tranche.
Maintaining high standards of governance and compliance with all statutory governance standards are paramount to financial institutes. In 2019 Siyapatha Finance strengthened the Risk and Compliance functions by forming two separate divisions for each function.
Siyapatha Finance has also improved its risk management and credit evaluation processes while maintaining the targeted credit growth and primary objectives of business development.
“The Siyapatha Finance Team, including the Board of Directors and the Corporate Management spearheaded by the Managing Director, took a long and hard look at the business and came up with a clear strategy that would secure the investments of our customers while ensuring that all stakeholders reap benefits for their commitments. Together we clearly identified the strengths of our operations and built sustainable measures into the system”, stated Sumith Cumaranatunga, Chairman of Siyapatha Finance.
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