Finance Recovery

Nov 04, 2011 (LBO) – Sri Lanka’s The Finance Company Ltd said it broke even in the September 2011 quarter, recovering from a steep loss a year earlier, helped by provision reversals and lower interest expenses. The firm reported profits of 6.9 million rupees for the September quarter, recovering from a loss of 737 million rupees a year earlier. It said earnings were 4 cents for the quarter. For the six months to September it reported profits of 33 million rupees or 21 cents a share.

The Finance is a troubled finance firm which was re-structured under regulatory guidance.

Interest income rose just 1.1 percent to 532 million rupees but interest expense fell by a steep 20.4 percent to 602 million rupees. Net interest expenses fell to 70 million rupees from 231 million rupees a year earlier.

Total operating expenses were also down to 300 million rupees from 579 million rupees a year earlier.

There was reversal of loss of provision of 89 million rupees.