People’s Leasing & Finance posts Rs. 4.6b PAT

Despite the uncertainties and many challenges, People’s Leasing & Finance PLC, has concluded the financial year (FY) 2021/22 with a record profit after tax (PAT) of Rs. 4.66 billion, the highest profit that the company has registered since its inception in 1996.

PAT has seen a remarkable growth of 15.5% year-on-year, while profit before tax (PBT) is recorded in rupees. 6.65 billion, which represents an impressive annual growth of 13.2%.

Managing Director Shamindra Marcelline said, “Our groundbreaking financial performance in fiscal year 2021/2022 reflects employee engagement, alignment of strategies to address stakeholder concerns, and reformulation of policies and procedures to ensure a conducive operating environment.

“The year, similar to the previous year, brought significant challenges amid the third wave of Covid-19 which weighed on the performance of the country’s macroeconomic indicators, resulting in a difficult environment for businesses. However, as a company, we have overcome these challenges and recorded historic financial performance.

“The impressive PAT was achieved while ensuring the well-being of its in-house staff of over 2,000 people and the local community in this challenging environment.”

The Company’s non-performing asset ratio declined reflecting the efforts and resources devoted to managing credit risk and improving recoveries. Loans and receivables impairment charges decreased by 37.2% from Rs. 1,044 million to Rs. 656 million.

During this period, the Company has managed to stay above the requirements imposed by the Central Bank of Sri Lanka in terms of capital and moratoriums, while maintaining a non-performing loan (NPL) ratio well below the industry average.

The Company continued to create value for its stakeholders throughout the year by adopting a stakeholder-centric leadership that primarily targets risk management, measures to accelerate growth momentum and strengthen of the political framework.

“The outlook looks extremely difficult for the Company. Current inflationary pressures as well as the increase in key rates should have an impact on the Company’s loan portfolio. To offset this impact, we would look for other ways to generate revenue,” he said.

The Company continued its digitization process throughout the year and, as part of this process, it launched internal and external customer-centric applications. This has now become a key priority moving forward to reduce costs and improve engagement with customers.

The company continued to support all of its customers during the financial year and provided more than 38,000 customers with moratoriums worth Rs. 8.39 billion. In line with Central Bank of Sri Lanka guidelines, the company suspended vehicle seizures and rescheduled loan facilities.

Like every year, People’s Leasing & Finance has launched several CSR projects that give back to society, particularly in the North, East, West and South regions.

Despite the challenges encountered throughout the year, the resilience of People’s Leasing & Finance was exemplified by various recognitions and accolades achieved during the 2021/22 financial year. The company has been ranked among the top 20 companies out of 75 limited companies in Sri Lanka in the “Transparency in Corporate Reporting (TRAC) for the year 2021” organized by Transparency International. People’s Leasing was also ranked 27th among Sri Lanka’s 2020/21 “TOP 40” winning listed companies chosen by Business Today magazine on the basis of best financial performance.

Shamindra Marcelline, CEO of People’s Leasing & Finance, has been awarded the title of “CEO of the Year 2022” by the “Sri Lanka Best EmployerBrands Award 2022”, an event organized by the World HRD Congress, for his true leadership in the orientation of the company towards success.

People’s Leasing & Finance PLC, incorporated in 1995 as a private limited company wholly owned by People’s Bank, has indeed today positioned its brand in the very heart of Sri Lankans. As a key player in financing the country’s public transport sector, People’s Leasing has launched a new aid program “Hitha Mithuru” for the segment of private passenger transport customers to overcome difficulties as they are rebuilding their businesses after Covid-19. With a strong capital position and balance sheet, People’s Leasing & Finance is one of the highest rated NBFIs in the country, with an ‘A+(Ika)’ rating from Fitch Ratings Lanka Ltd. People’s Leasing & Finance PLC will continue to serve the people of Sri Lanka, particularly the SME sector, by helping them to grasp their mutual goals and aspirations.