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Siyapatha Finance records Rs. 1 bn PAT for 2021, increase of 167%

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Chairman, Sumith Cumaranatunga and Managing Director Ananda Seneviratne
Chairman, Sumith Cumaranatunga and Managing Director Ananda Seneviratne

Siyapatha Finance has continued on its robust performance, despite the pandemic-induced economic challenges, ending the 2021 financial year with the highest ever profitability through its Profit Before Tax reaching RS 1.53 billion (bn).

Profit after tax increased by 167% from Rs 409.5 million (mn) in 2020 to Rs 1,094.5 mn in 2021. Income growth coupled with prudent management of operating expenses resulted in the substantial improvement of the cost to income ratio to 33.56% from 39.28% the previous year. The Company continued to systematically focus on its well performing segments, whilst maintaining its risk management strategies, credit quality and improving the recovery efforts.

Another noteworthy achievement was the management of Non-Performing Advances (NPA). During the year, the Company managed to reduce its gross NPA ratio to 16% from 18% in 2020. Despite the moratoria and drastic decline in economic activities, the Company was able to contain the NPA of the leasing portfolio within the industry benchmark of 12%. This reflects its commitment to driving recoveries and maintaining credit quality despite the downturn in business activities. The Company held a strong asset base of Rs 42.75 bn as at December 31, 2021, recording a growth of Rs 1,198.59 mn during the year. Total liabilities of the Company increased marginally to Rs 36.52 bn as at December 31, 2021 compared to Rs 36.43 bn as at December 31, 2020. The Company’s Return on Average Assets grew by 163 bps to 2.59% during the financial year 2021, derived by enhanced earnings.

The deposit base of the Company was maintained at a steady level of Rs 17.11 bn. This reflects the trust and confidence attained by the Company among fund managers and the corporate sector that continued to place substantial fixed deposits. The Tier I Core Capital Ratio and the Total Capital Ratio stood at 14.74% and 21.36% as at December 31, 2021, well above the respective regulatory capital adequacy requirements of 7% and 11%.

Sumith Cumaranatunga, Chairman, Siyapatha Finance PLC said “This is a testament to the ability of our remarkable workforce, our strength, our dedication and our constant need to improve ourselves through the implementation of our high performing strategies.”

“Siyapatha Finance continues to display remarkable resilience and growth even amidst the prevailing challenges in the external environment. We are cognizant of the challenging path ahead of us and yet we are confident of delivering consistent growth with much optimism and enthusiasm,” stated Ananda Seneviratne Managing Director, Siyapatha Finance.

Tuesday, March 22, 2022 – 01:00

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