Central Finance maintains growth

Central Finance Company PLC continues its steady growth and with the 'A+' (lka) Fitch rating intact against challenging economic conditions.

"The outlook is Stable," Fitch Ratings noted reaffirming the CF national long-term rating as A+ (lka).

"CF's rating factors in its relatively good financial profile and its dominant market position in the Registered Finance Company (RFC) sector in Sri Lanka," Fitch Ratings announcement said. "CF management took a cautious approach to loan growth and further tightened stringent credit policies due to the challenging macroeconomic environment in FY09."

The six months ending September 30, 2009 saw the Company's income growing by 1.9 percent to Rs 3.4 billion. Interest income grew 3.6 percent to Rs. 2.8 billion while interest expenses were contained at Rs 1.6 billion, up 2.4 percent from expenses incurred during the same period the previous year.

Other income too improved from Rs.163.28 million to Rs 187.24 million.

However, profit after tax dropped 15.8 percent from Rs 511.2 million to Rs 430.6 million.

Deposits continued to increase and Rs 16 billion mark, up from Rs 13.46 billion at the end of the last financial year.