Lanka Business Online

Net Interest

Feb 19, 2013 (LBO) – Sri Lanka’s The Finance Company Plc’s lost 510 million rupees in the December 2012 quarter up from a loss of 17 million rupees a year earlier, while nine month losses were 1.26 billion rupees, interim accounts showed. The firm reported earnings of 3.18 rupees for the quarter. In the nine months to December it reported losses of 7.87 rupees per share.

The company ran into trouble mostly due to heavy investments in property in a bubble that ended around 2008 and has since been under regulatory restructuring.

In the December quarter interest income rose just 1.3 percent to 515 million rupees and interest expenses rose 25.8 percent to 796 million rupe es. The fund book lost 280 million rupees with negative net interest income rising 117 percent to 280 million rupees.

Sri Lanka’s interest rates have risen over the past year.

Personnel cost also rose to 118 million rupees from 53 million rupees in the quarter from a year earlier.

Loan losses were a 14 million rupee reversal.

In the nine months to December the firm lost 1.26 billion rupees. By end December the firm had assets of 19.7 billion rupees and liabilities of 24.8 billion rupees resulting in negative net assets of 5.1 billion rupees.

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