PLC Group declared the highest-ever first half results in its history with an outstanding PAT of Rs. 2.35 billion, signifying a 25.3% growth over the corresponding period of the previous year.
The Group’s performance has been consistent since the second quarter of the last financial year with profits over Rs. 1 billion for consecutive five quarters. Group’s pre-tax profit reached Rs. 3.38 billion with a 27.8% surge and Group’s total assets stood at Rs. 121.66 billion reflecting a 3.8% rise over the asset base as at 31 March 2015.
“A strong asset base, steadfast workforce lead by an abled management paved the way for the Group to achieve exceptional performance in the 1H of 2015/16,” PLC Chairman Hemasiri Fernando stated, expressing his views on the 1H achievement.
People’s Leasing & Finance PLC being the main contributor to the Group’s achievement also evinced its highest-ever 1H result with a Rs. 2.26 billion profit after tax reflecting an YoY growth of 29.5%. Profit after tax for second quarter also grew by 16.8% over the corresponding period of the previous year to Rs. 1.26 billion, securing the highest profit achieved for a quarter throughout PLC’s corporate journey.
Low interest rate regime lessened interest income to Rs. 4.48 billion while interest expenses decreased to Rs. 1.89 billion (-23.4%) resulting a net interest income of Rs. 2.59 billion (+5.6%) in the second quarter of financial year 2015/16. Despite the growth in business volumes, PLC managed to curtail the growth in operating costs to 2.5% in 2Q which positively contributed to the Company’s profitability.
Business volumes of PLC reached a new milestone during the 2Q with the achievement of Rs. 7 billion monthly disbursements in September, thus making PLC the first finance company to secure such achievement. With that, total disbursement of the second quarter under review grew to Rs. 19.51 billion from Rs. 15.89 billion over the corresponding quarter of financial year 2014/15 with improved non- performing advances ratio of 2.69% which showcases the recovery ability of the Company.
The Company’s assets sum up to Rs. 116.64 billion with an increase of 3.8% compared to the asset base as at 31st March 2015. Loans and advances portfolio grew by 5% and reached Rs. 103.30 billion. Deposit base climbed to Rs. 34.29 billion.
Commenting on the first half results, CEO D.P. Kumarage stated: “PLC performed extremely well amidst the challenging business environment to record solid operational and financial results in the 1H and we are very optimistic about the rest of the financial year.”