Lower Loss

Sept 16, 2010 (LBO) – Sri Lanka’s The Finance Company (TFC) reduced losses to 431 million rupees in the June 2010 quarter compared with a loss of 693 million rupees the year before, a stock exchange filing said. Interest income fell 42 percent to 660 million rupees while interest expenses fell 45 percent to 814 million rupees, with net interest income falling 56 percent to 154 million rupees from a year ago.

Other income of TFC, which suffered a run on deposits in early 2009, fell sharply.

Provision for loan losses also fell sharply, down to 40 million rupees from 248 million the year before.

The firm had a loss per share of 21.10 rupees in the June 2010 quarter compared with a loss of 33.96 rupees the year before.

TFC suffered a run after the collapse of Golden Key, an unlisted member of its parent Ceylinco group.

Merchant Bank of Sri Lanka, the investment banking unit of state-owned Bank of Ceylon, was later appointed as the managing agent of TFC in mid-2009.

TFC’s income from hire purchase, its main business, fell 47 percent to 297 million rupees in the June 2010 quarter while income on land sales fell 32 percent to 109 million rupees.

Income from most other businesses al