Orient Finance Achieves Remarkable Financial Turnaround in 2023/24

Orient Finance has achieved a significant turnaround in its financial performance for the year 2023/24, recording a Profit after Tax of LKR 348.53 million—an impressive growth of 584% compared to the previous year’s loss of LKR 72 million. Total assets increased by 17% to LKR 20,477 million, reflecting accelerated growth that has surpassed industry average of 8%, driven by the company’s dynamic approach to portfolio expansion and risk management.

Key financial highlights include:

• Profit for the year 2023/24: LKR 348.53 million, up from LKR -72 million in 2022/23
• Total Assets: LKR 20,477 million, up from LKR 17,469 million in 2022/23
• Loans and Receivables: LKR 15,659 million, up from LKR 12,941 million in 2022/23
• Deposits: LKR 13,556 million, up from LKR 10,759 million in 2022/23
• Total Equity: LKR 3,603 million, up from LKR 3,281 million in 2022/23
• Basic Earnings Per Share: LKR 1.65, up from LKR -0.34 in 2022/23
• Net Assets Per Share: LKR 17.07, up from LKR 15.54 in 2022/23
• Return on Equity (ROE): 10.13%, up from -2.18% in 2022/23

Orient Finance’s Net Interest Income recorded an impressive increase of 81% to LKR 1.79 billion, fuelled by higher loan disbursements and improved interest margins, reflecting effective management of lending activities and enhanced profitability in core business operations. Additionally, Non-Interest Income rose by 17% to LKR 266 million, supported by strong performances in fee-based services. This underscores the company’s diversified revenue streams and its ability to capitalize on market opportunities beyond traditional business activities.

The company has also achieved a commendable improvement in its Cost-to-Income Ratio, which decreased to 66.53% from 93.44% in the previous financial year. Furthermore, the Return on Equity improved significantly to 10.13%, up from -2.18% in the preceding financial year.

The company’s loan portfolio expanded by 21% to reach LKR 15,659 million, as a result of robust contributions from the SME and microfinance sectors. This growth reflects Orient Finance’s strategic focus on diversifying and expanding its loan portfolio while maintaining prudent risk management practices. The company has successfully maintained a high-quality portfolio, ensuring that Non-Performing Loan (NPL) levels remain below industry averages throughout the period.

Rajendra Theagarajah, Chairman of Orient Finance PLC, reflected on the company’s notable enhancement in financial performance stating, “Our ability to navigate a dynamic business landscape has been a hallmark of our success this year. Through strategic initiatives and the dedication of our team, we’ve not only achieved strong financial results but also enhanced our operational efficiency and customer satisfaction, despite the economic challenges faced in Sri Lanka. By re-engineering our processes and focusing on sustainable growth, we’ve positioned ourselves for continued success. Looking ahead, we remain committed to innovation, customer-centric solutions, and strengthening our brand. Our strategic priorities include leveraging digital technologies, expanding our product offerings, and consolidating our market position. With a solid foundation and a clear vision, we’re confident in our ability to thrive in the years to come.”

KMM Jabir, Director / CEO of Orient Finance PLC added, “Over the past few years, Orient Finance has demonstrated fortitude and adaptability, achieving notable success despite significant challenges. Our growth strategy and cost management have delivered impressive results for FY23/24. In addition to our effective market cycle navigations, central to our achievements has been a focus on customer protection and strong partnerships, which have further enhanced trust and loyalty. Our efforts in enhancing customer engagement, expanding our branch network, introduction of new financial products tailored to specific market segments, and strengthening risk management have  a 23% increase in our customer base, reaching 51,557. Additionally, our strategic expansion of branches and a comprehensive digital transformation have solidified our market position and competitive edge. We hope to continue to build on this approach and deliver the best to all our stakeholders.”

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