In a recent comprehensive financial analysis carried out by K Seeds Investments (Pvt) Ltd, Siyapatha Finance PLC was ranked the “Best Performing Finance Company” in Category 2 among 32 licensed finance companies for the quarter ended 30th June,2024.
Classified under the Second Category among four main categories, which enumerates listed financial companies with an asset base between Rs.50 billion and Rs.100 billion, Siyapatha recorded a Net Profit Margin of 9.34%. The company saw a Net Profit Growth of 372.05% in the quarter ended 30th June 2024, compared to the same period of analysis in the previous year.
Siyapatha Finance PLC Managing Director Mr. Ananda Seneviratne stated: “We are deeply honoured to be ranked the Best Performing Finance Company in the respective category. Our fundamental focus has always been to become a holistic financial service provider with our customers as well as employees’ best interests at heart. We believe this ranking reinforces our leadership in the financial service sector.”
The 15th issue of the “Ranking of Listed Financial Companies of Sri Lanka” financial results was based on 10 key performance indicators including Cost to Income Ratio, Return on Equity, Return on Assets, Net Profit Margin, Net Interest Margin, Impairment to Loan Book, Credit to Deposit Ratio, Operating Leverage, Net Profit Growth and Loan Growth, analyzing licensed finance companies amidst the volatile economic atmosphere and many changes.
In 2022, Sri Lanka experienced a significant economic downturn due to a number of political and policy-related concerns as well as external forces such as Covid. Since then, people have continuously faced multiple socio-economic challenges such as elevated levels of poverty, high cost of living, income inequality and rising inflation, among many others. This gradually and eventually led the business community, especially the small and medium-scale enterprises (SMEs), to dire straits.
With SMEs being a primary customer base seeking services of finance companies for capital investments and business expansion, people’s economic and financial challenges had a direct impact on demand for their services, where loans and advances portfolio of finance companies significantly contracted, particularly during the third quarter of 2023. In spite of these challenges, many finance companies were quick to diversify its activities as a measure to stay afloat.
Nevertheless, Sri Lanka began to show signs of economic and political stability, projecting moderate growth backed by declining inflation, improving revenue along with the implementation of new fiscal policies, current account surplus and an overall rebound in domestic economic activities, according to the Central Bank of Sri Lanka (CBSL) and The World Bank.
K Seeds Investments offers a wide range of financial advisory services to corporate entities and entrepreneurs across industries to provide vital information that demonstrate the financial strength of companies. Through this financial analysis, K Seeds Investments aims to provide valuable insights into the operational efficiency, profitability and risk management of these listed financial companies, facilitating in strategic decision making and seizing secure investment opportunities.
Siyapatha Finance PLC, the largest fully owned subsidiary of the Sampath Bank Group, boasts an islandwide network of branches ensuring its customers are provided with the best-in-service delivery standards. Over the past 19 years, the company has contributed to the development of small and medium entrepreneurial efforts as well as the fulfillment of individual financial needs across the island.
