Tough Streak

Aug 17, 2009 (LBO) – Sri Lanka’s The Finance Company, a unit of the troubled Ceylinco group, said it lost 693 million rupees in the June 2009 quarter as net interest income remained negative and loan loss provisions continued to rise. The company had made a net profit of 45 million rupees in the same quarter a year ago.

According to a stock exchange filing, in the June 2009 quarter The Finance’s interest income fell 29 percent to 1,133 million rupees, interest expenses fell 7.5 percent to 1,485 million rupees.

This resulted in net interest income being a negative 352 million rupees.

Other operating income fell 72 percent to 140 million while other income shot up 198 percent to 140 million.

The company accounts showed it managed to reduce expenses but provision for loan losses rose 140 percent to 248 million rupees.

Total assets stood at 36.9 billion rupees as at June 30, 2009 compared with 38.5 billion as at March 31, 2009

The Finance Company deposits and loan book were also shrinking.

Public deposits were at 27.2 billion rupees as at June 30, 2009 compared with 27 billion as at March 31, 2009 while long-term loans were at 898 million rupees as at June 30, 2009 compared with 988 million as at Marc