Softlogic Finance PLC, a subsidiary of Softlogic Capital PLC, has posted a Net Interest Income of Rs 1.35 Billion year to date (YTD) as at March 31,2022 recording a 146% Year-on-Year (YoY) increase despite the challenging operating environment.
Net Income for 4Q 2021/22 was Rs 502 million in comparison to the Rs 318 million in 4Q 2020/21, adding up to a YTD Net Income of Rs 1.6 billion. The company attributed the promising results to its growth strategy focused on a new secured lending portfolio that has accrued only 0.8% in non-performing loans and the management restructuring process, which the business went through in the previous financial year.
The company’s Operating Profit rose to Rs 275 million YTD, in unaudited figures, in comparison to a loss of Rs. 520 million in the corresponding period of the previous year. Softlogic Finance maintained the Capital Adequacy Ratios above regulatory requirements in the period under review, with the Tier 1 Capital Ratio at 8.33% and the Total Capital Ratio at 12.83%.
The company grew its secured lending portfolio during the financial year 2022, with Leasing growing by 108% YoY in comparison to the corresponding period in 2021, whilst Pawning grew by 39%. Commenting on the company’s financial situation, Priyantha Wijesekera, Chief Executive Officer at Softlogic Finance PLC stated, “Softlogic Finance is operating in a robust financial position today as a result of the prudent financial measures that were put in place in the past two years. These efforts were further boosted by the restructuring of the senior management.
Whilst legacy issues from previous years still exist, the company is making provisions for it as per industry best practices.
However, the actual growth of the company is on a healthy trajectory and will be reflected in the financial results in the next financial year. This stable growth was affirmed with the upgrading of the company rating by ICRA Lanka to (SL)BB Stable even during an economic downturn.”
Softlogic Finance has made a prudent decision to make additional impairment provisions against the legacy portfolio at the end of Q4 2022 and made adjustments to the management accounts. This action that will yield long term benefit to the stakeholders resulted in the net loss of Rs 727 million YTD in this financial year, adjusted from a Profit After Tax of Rs 34 million as at the end of 4Q 2022. Softlogic Holdings PLC is known to be one of Sri Lanka’s most dynamic and progressive conglomerates, with industry leadership in key business verticals, being present across ICT, Healthcare, Retail, Financial Services, Automobiles and Leisure. Softlogic Finance is a registered finance company under the Finance Business Act No. 42 of 2011.