#nonperforming assets

[ijtsrd]

Factoring Business '“A Financial Revival Strategy

By K. Bala Krishna | Dr. Satya Subrahmanyam | Dr. G. Srinivasa Rao"Factoring Business '“A Financial Revival Strategy" 

Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, 

URL: http://www.ijtsrd.com/papers/ijtsrd14195.pdf  

http://www.ijtsrd.com/management/business-administration/14195/factoring-business-'“a-financial-revival-strategy/k-bala-krishna

international journal of management, conference issue publication, chemistry journal

Factoring is a process of converting accounts receivables into cash .Customers do not prefer cash sales. To increase the customer convenience the institutions are going for credit sales. If these credits are not recovered then it would increase the level of nonperforming assets and thus it results in financial crunch of the organization resulting in liquidation of company. So these institutions are entering into contracts with factors prior planning for credit sales. Thus they are fixing high margins for the products which include the factoring commission. This is the real reason for gaining demand for the factors. These factors are adopting unfair methods for collecting the bad debts which would tamper the image of the institutions and corporate hiring factors .some of the factors assist the companies in maintain accounts, sales ledgers, understanding the credibility of buyers, export documentation, credit administration. 

[marketexclusive]

Preferred Bank (NASDAQ:PFBC) Beats Expectations for Q4

Preferred Bank (NASDAQ:PFBC) had a fairly strong 4Q2015 and fiscal 2015 in which both earnings per share and overall revenue impressed. The acquisition of United International Bank (UIB) that was concluded late in 2015 also added to top-line growth in the quarter and the year.

4Q results

Preferred Bank generated net income of $7.5 million or $0.54 per share for the quarter. Post adjustment, Preferred’s Q4 EPS jumped to $0.57. The Street was looking for EPS of $0.54 for the quarter. Preferred posted EPS of $0.57 in the previous quarter and $0.50 in the same period a year ago.

Revenue of $23.3 million for the latest quarter not only exceeded the consensus estimate of $23.2 million, but also surpassed $21.6 million in the previous quarter and $19.4 million a year ago quarter.

The acquisition of UIB resulted in a $658,000 hit on 4Q earnings, although the acquisition did boost deposits.

Annual results

For the full year, Preferred Bank reported net income of $29.7 million or $2.13 per share. The company generated EPS of $1.78 in the same quarter a year earlier. Revenue for the year was $83.8 million, up from $71 million in the previous year. Top-line gains in the latest quarter were supported by a strong loan book.

The bank finished 2015 with deposits of $2.29 billion, up from $1.78 billion in the previous year. The spike in total deposits was partly driven by the acquisition of UIB, which contributed $158 million of additional deposits.

In terms of assets, Preferred had $2.6 billion at the end of 2015, up nearly 26.6% from assets of $2.05 billion at the end of 2014.

Bank management reported that nonperforming assets in 2015 declined to just $6.4 million. The decline was primarily as a result of shifting nonperforming loans to what is called OREO status, or Other Real Estate Owned.

Preferred Bank (NASDAQ:PFBC) Beats Expectations for Q4 was originally published on Market Exclusive