Финансовая компания SMB Finance показала рост прибыли на 254% и укрепляет капитал

Reply To: Name - Reply Comment Colombo, July 6 (Daily Mirror) - SMB Finance PLC has reported a strong start to 2026, demonstrating significant improvements in profitability, stronger capitalization and enhanced asset quality as the company enters a new phase of sustainable growth following its transformation into a fully-fledged finance company. According to the Interim Financial Statements for the quarter ended 31 March 2026, SMB Finance recorded a net profit of Rs. 84.5 million for the first quarter, representing a substantial increase of approximately 254% compared to Rs. 23.9 million reported during the corresponding period last year. This strong performance reflects the success of management’s strategic restructuring initiatives, operational enhancements, and focused non-performing loan (NPL) recovery efforts. Net interest income also recorded healthy year-on-year growth, underscoring the Company’s improving earnings capacity and strengthening business fundamentals. The company has also continued its focus on strengthening portfolio quality through prudent credit underwriting and recovery initiatives, resulting in a reduction in non-performing loans and improved risk indicators. This disciplined approach has enabled SMB Finance to maintain a healthier loan book while supporting profitable growth. A key highlight of the quarter was the strengthening of the company’s capital position. The Core Equity Tier 1 (CET1) Capital Ratio remained comfortably above the regulatory minimum requirement, providing a strong capital buffer to support future growth and business expansion. As at 31 December 2025, the Tier 1 Capital Ratio stood at an exceptionally strong 78.11%, significantly exceeding the regulatory minimum requirement of 8.50%, while the Total Capital Ratio was 77.47%, well above the minimum requirement of 12.50%. Total equity increased to nearly Rs. 3.9 billion as at 31 March 2026 from Rs. 3.8 billion at the end of 2025, supported by improved retained earnings and sustained profitability. The enhanced capital buffer provides a solid platform for future business expansion while maintaining regulatory compliance and financial resilience. Since obtaining its full finance company license in 2023, SMB Finance has successfully completed a critical consolidation phase focused on governance enhancement, balance sheet strengthening, risk management improvements and business stabilization. The company has since expanded its product offerings and strengthened customer confidence, positioning itself for long-term growth. With its established branch network serving customers across key regions of the country, SMB Finance is actively evaluating opportunities to expand its branch footprint into emerging growth markets. This strategic expansion aims to enhance customer accessibility, strengthen market presence, and deepen customer engagement while supporting the company's long-term growth objectives. Management notes that the consolidation phase has now been largely completed, with the company entering a growth trajectory centered on sustainable portfolio expansion, supported by stronger profitability, improved capital strength and disciplined credit management, SMB Finance’s strategic priorities centers on five key pillars: improving asset quality through continued NPL recoveries and rigorous credit risk management, upgrading its external credit rating from the current BB level to the next tier, growing the asset book through a diversified product mix, and actively recycling assets to generate liquidity. More importantly, SMB Finance PLC is committed to integrating Environmental, Social and Governance (ESG) principles into its business strategy and operations. The company appears well-positioned to leverage emerging opportunities in Sri Lanka’s recovering financial services sector while maintaining its commitment to sustainable and responsible growth.