Orient Finance has achieved a significant turnaround in its financial performance for the year 2023/24, recording a Profit after Tax of LKR 348.53 million—an impressive growth of 584% compared to the previous year’s loss of LKR 72 million.
Total assets increased by 17% to LKR 20,477 million, reflecting accelerated growth that has surpassed the industry average of 8%, driven by the company’s dynamic approach to portfolio expansion and risk management.
Orient Finance’s Net Interest Income recorded an impressive increase of 81% to LKR 1.79 billion, fuelled by higher loan disbursements and improved interest margins, reflecting effective management of lending activities and enhanced profitability in core business operations. Additionally, Non-Interest Income rose by 17% to LKR 266 million, supported by strong performances in fee-based services.
The company has also achieved a commendable improvement in its Cost-to-Income Ratio, which decreased to 66.53% from 93.44% in the previous financial year. Furthermore, the Return on Equity improved significantly to 10.13%, up from -2.18% in the preceding financial year.
The company’s loan portfolio expanded by 21% to reach LKR 15,659 million, as a result of robust contributions from the SME and microfinance sectors.
Orient Finance PLC Chairman Rajendra Theagarajah, said “We’ve not only achieved strong financial results but also enhanced our operational efficiency and customer satisfaction, despite the economic challenges faced in Sri Lanka.”
“Our strategic priorities include leveraging digital technologies, expanding our product offerings, and consolidating our market position. With a solid foundation and a clear vision, we’re confident in our ability to thrive in the years to come.”
Director/CEO KMM Jabir added, “Our efforts in enhancing customer engagement, expanding our branch network, introduction of new financial products tailored to specific market segments, and strengthening risk management have a 23% increase in our customer base, reaching 51,557.”
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