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Capital Adequacy Ratio increases from 7% in 2021 to 20% in 2022

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Kanrich posts stellar performance
Chairman, Dr. Ravi Ratnayake and  CEO, Shiran Weerasinghe
Chairman, Dr. Ravi Ratnayake and CEO, Shiran Weerasinghe

Kanrich Finance, celebrating its 50th anniversary, re-established itself as a profit-making company in 2022 with increases in returns on equity, assets, and earnings per share of 12.8%, 3.5%, and 1.5%, respectively.

The Capital Adequacy ratio increased from 7% in 2021 to 20% in 2022, 3 times more than the regulatory requirement. Though the company was able to withstand the pressure from the economic slowdown since 2016 and continue as a profitable company, challenges emerged. First, it was the announcement of the political leadership promising the borrowers of microfinance to default on their loans, which resulted in staggering Rs. 800 million in losses to Kanrich. The Company’s core capital plummeted from nearly Rs. 1.79 billion in 2018 to 1.2 billion in 2019.

This was followed by the Easter attack, the Covid-19 pandemic, and the unprecedented economic crisis during 2020-2022. However, Kanrich regained its strength to cope with many challenges and turned out to be a profit making company.

Chairman of Kanrich, Dr. Ravi Ratnayake, said, “It is not easy for any financial institution to survive in the industry with robust commercial performance for 50 years and maintain its trust. Kanrich is at a cross-road requiring a successful transformation towards a new journey in 2023 with new goals and hopes for a bright future leading to sustainable growth, continuing profitability, and enhanced resilience”.

Shiran Weerasinghe, CEO of Kanrich, said, “The financial year of 2021-22 reminds us of the past glory Kanrich enjoyed before the economic downturn in 2018, followed by the C-19 epidemic and the tri-crisis-social, political, and economic- that started in the previous financial year. Against the backdrop of the economic crisis facing Sri Lanka, we succeeded by recording profits this year by surmounting challenges determinedly. We managed to maintain a reasonable balance between the Company’s assets and liabilities. Despite challenges, we achieved these results based on quality work, talented staff, teamwork, and dedication”.

 

 

Thursday, December 22, 2022 – 01:00











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