People’s Leasing & Finance posts impressive 42.4% profit growth for 1H

People’s Leasing & Finance PLC has once again strengthened its reputation as one of Sri Lanka’s leading Non-Banking Financial services providers, delivering an impressive financial performance for the 1st six months of FY 2024/25 ending September 30 reporting a top line income of LKR 12,676 million.

This resulted in a healthy profit of LKR 1,566 million, an exceptional 42.4% increase in profitability compared to the same period in the year prior. This achievement was fuelled by a robust second quarter, during which net interest income rose by 19.5%.

The company’s cost-to-income ratio reflects operational efficiency, with operating income growing by 21.5% with significant contributions from other income, while operating expenses rose by a contained 15.7% for the period ended 30 September 2024 due to disciplined cost management.

A standout aspect of the company’s performance was the reversal of impairment charges by 63.6% during the period ended 30thSeptember 2024.This achievement reflects an effective recalibration of credit provisioning, driven by stronger collections and improved credit quality.

This was driven by the company’s utilisation of provisioning for credit losses as a KPI to control impairment risks, demonstratingPeople’s Leasing & Finance agile and strategic approach to risk management. During the period under review, the company’s loans and receivables portfolio also grew by 9.9 %,further strengthening the balance sheet, resulting in total assets rising toLKR 147,559 million, which is a significant increase from the figure reported as at 31stMarch 2024.

Chief Executive Officer Sanjeewa Bandaranayake said, “As one of Sri Lanka’s leading Non-Banking Financial services providers, we have continued to prioritise resilience and innovation. Our ability to enhance profitability, strengthen our balance sheet, and adapt to changing economic conditions reflects our unwavering commitment to delivering value to our customers and stakeholders.”

“We remain steadfast in supporting the economic aspirations of all Sri Lankans, alongside broader national economic growth.”

People’s Leasing & Finance PLC continues to demonstrate a consistently robust financial position and align its operations with industry best practices. With Sri Lanka moving towards greater political stability and economic recovery, People’s Leasing & Finance PLC is ready to seize emerging opportunities, ensuring sustainable growth and resilience in the years ahead.

Source:Daily News