Softlogic Finance PLC recorded a net loss of Rs 100.6 million for the quarter ended 30 September 2026, swinging from a net profit of Rs 84.3 million in the same quarter a year earlier, EconomyNext reported from the company’s interim accounts.
The licensed finance company attributed the reversal to the non-recurrence of one-off gains, higher credit impairment and rising staff costs. Annualised basic loss per share was Rs 0.42, against annualised earnings of Rs 0.35 a share a year before.
Core lending grew; the accounting comparison did not
The swing is largely a base effect. Total income fell 18.7 percent to Rs 319.7 million from Rs 393.1 million, chiefly because last year’s quarter carried a Rs 140.1 million one-off gain from the derecognition of financial assets that did not repeat. Fee and commission income fell 53.9 percent to Rs 14.7 million.
The lending book itself strengthened. Interest income rose 35.5 percent to Rs 285.8 million, on growth in personal and gold loan advances, while interest expenses rose 23.4 percent to Rs 150.7 million on higher deposit mobilisation — lifting net interest income 52.1 percent to Rs 135.1 million from Rs 88.8 million.
What eroded the result was provisioning. Impairment charges swung to a net cost of Rs 8.9 million from a provision reversal of Rs 83.7 million credited a year earlier, dragging net operating income down 54.9 percent to Rs 160.1 million. Personnel costs rose 18.3 percent to Rs 131.3 million, and operating profit before tax swung to a loss of Rs 92.1 million from a Rs 124.7 million profit.
Rights issue priced well below the market
Total assets stood at Rs 7.84 billion at 30 September, up from Rs 7.34 billion at 31 March, on higher securities purchased under repurchase agreements. Customer deposits grew 20.9 percent to Rs 4.52 billion and shareholders’ funds stood at Rs 2.90 billion. Tier 1 and total capital adequacy was 46.20 percent, well clear of regulatory minimums.
The board has recommended a 5-for-12 rights issue at Rs 2.50 a share to raise Rs 1.00 billion, to strengthen core capital and expand vehicle leasing, subject to shareholder approval on 13 November 2026. The shares closed the quarter at Rs 3.60 — putting the subscription price about 31 percent below the market.
Not reported
EconomyNext’s filing does not give six-month cumulative figures, gross or net non-performing loan ratios, or the composition of the impairment charge. It does not state the record date or trading period for the rights issue.
Sourcing note. This is a single-source report. Softlogic Finance’s interim results were not carried by the Daily Mirror or Daily FT rails at the time of writing, and Daily FT’s recent Softlogic items concern Softlogic Life Insurance — a separate listed company in the same group, not the issuer reported here.