Peoples Leasing’s profits surge 80.9% in Q1

People’s Leasing & Finance PLC (PLC), concluded the first Quarter of the fiscal year 2023/24 with a year-on-year increase in Profit of 80.9% in the midst of a challenging economic landscape.

PLC’s top line interest income recorded an impressive 10.2%, reaching Rs. 7,465 million owing to the increased investment income during the quarter. However, the company’s net interest income showed a modest fall when compared to the first quarter of 2022/23.

Despite the stated decrease in net interest income, PLC was able to end the first quarter with a profit after tax (PAT) of Rs. 331 million as opposed to Rs. 183 million recorded in Q1 2022/23.

Similarly, PLC Group also recorded a PAT of Rs. 552 million during Q1 2023/24, reflecting a year-on-year increase of 21.5% mainly driven by the significant reduction in the Group’s impairment charges and other losses for loans and receivables.

Even in the face of a highly inflationary environment, PLC successfully reduced total operating expenses by 3.5% compared to the corresponding quarter in the year prior due to a determined effort to increase efficiency through digital initiatives, right-sizing of branches, and improvements in internal processes. PLC had a total asset base of Rs. 155,380 million as of 30 June 2023. Total asset base of the PLC Group also remained resilient at Rs. 179,948 million as of 30 June 2023.

The majority of PLC’s funding needs were met through improved collections enabling PLC to remain watchful in growing its deposit base in a high-interest environment. Despite these measures, the deposit base of PLC remained robust at Rs. 93,228 million as of 30 June 2023, showcasing strong customer confidence. The Group deposit base also remained strong at Rs. 100,439 million, as at 30 June 2023.

CEO Shamindra Marcelline remarked, “Our Q1 performance demonstrates our unwavering commitment to our valued customers and the strength of our operational fundamentals. Even in the face of adversity, we remain steadfast in delivering financial solutions that empower individuals and businesses, contributing to the economic prosperity of all Sri Lankans.”

Impairment Charges for loans and other losses notably decreased by an impressive 74.0% over Q1 2022/23, with impairment charges for the period under review totalling Rs. 442 million. Total Loans and Receivables portfolio of the Company and the Group stood at Rs. 104,051 million and Rs. 116,292 million respectively as at 30 June 2023.

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