PLC registers 50% YoY growth in profit during 1Q

Wednesday, 12 August 2015 00:00 - - {{hitsCtrl.values.hits}}

People’s Leasing & Finance PLC (PLC) yet again reflected its strong position in the non-bank financial institutions sector by achieving an outstanding profit of Rs. 1 b during the first quarter of the financial year 2015/16. fdh

Upon completing its most successful financial year to date, PLC continued to sustain the growth momentum in the first quarter of the new financial year reflecting a staggering year on year growth of 50% in comparison to the first quarter of the financial year 2014/15.

The declining interest rate regime prevalent in the country required the company to be extra cautious about the interest expense to retain its interest margin. However, under such circumstances, PLC’s effective management of borrowing sources enabled PLC to achieve a 9.5% year on year growth in the net interest income. PLC also owns the largest asset base in the non-bank financial institution sector with an asset base of Rs. 112 b.

Commenting on the outstanding performance, PLC Chairman Hemasiri Fernando said: “PLC successfully outperformed the challenges to record a Rs. 1 b profit in the first quarter of the financial year and expects to see this momentum continuing in the rest of the financial year as well.”

Whilst reflecting an exceptional improvement in profitability, the company also saw its business volume reaching to Rs. 14.92 billion with a 28% growth compared to the cumulative disbursements during the corresponding period of the previous financial year.

The widespread branch network of the company collectively contributed to the increase in disbursements during the period. With this improvement in business volumes during the first quarter, the company is looking forward to reaching a new milestone in cumulative disbursement levels during the financial year 2015/16.

Enhanced recovery efforts permitted the company to witness a non-performing advances ratio of 2.77% at the end of the quarter which is outstandingly lower than the industry average of 6.9%.

PLC continues to be the market leader of the leasing sector for the thirteenth consecutive year which is a tremendous achievement given the intense competition prevalent in the sector.

In addition, the strong financial position has supported the company to remain as the highest rated non-bank financial institution in the country with two international ratings.

“PLC has always been a benchmark in the industry with its exceptional results in every aspect and we are expecting to remain so whilst delivering best results for our stakeholders,” said Chief Executive Officer D.P. Kumarage.