People’s Leasing and Finance reports steady growth in FY24

Friday, 31 May 2024 00:21 - - {{hitsCtrl.values.hits}}

Chairman Pradeep Amirthanayagam

Acting CEO Udesh Gunawardena

People's Leasing and Finance PLC, has demonstrated remarkable resilience and strategic foresight in its financial performance for the fiscal year 2023/24.

The company reported a robust Profit After Tax (PAT) of Rs. 3,541 million, marking a significant 17.3% increase from the Rs. 3,018 million recorded the previous year. People’s Leasing and Finance experienced a strong second half of the year, with the third and fourth quarters proving particularly favourable. Profitability improved notably during this period, with the company recording a PAT of Rs. 2,438 million during this period.

Amidst a challenging business environment marked by reduced interest rates, People’s Leasing and Finance managed to limit the decline in Interest Income to just 4.5%. Alongside this, the company was also able to boost profitability by implementing several strategic measures, particularly in terms of effective collection strategies and impairment reversal measures. Accordingly, the impairment reversal for FY 2023/24 amounted to Rs. 1,156 million, contributing to a healthy average collection ratio.

These achievements underscore the company’s ability to deliver sustainable growth amidst a dynamic business environment, and in a fiscal year marked by two distinct periods: the first half characterised by subdued demand and prolonged economic challenges, and the latter half witnessing a notable upswing spurred by a resurgence in economic activity in late 2023.

The total loans and receivables portfolio showed improvement relative to the end of Q3, amounting to Rs. 103,650 million as of 31 March. The asset base of People’s Leasing and Finance also showed marginal growth compared with Q3. Accordingly, Total Assets as at 31 March stood at Rs. 159,850 million.

Throughout the year, the company strategically opted against aggressive canvassing of deposits, capitalising on surplus funds generated from diligent collection efforts, and maximising investment returns. The company’s liquidity position and capital adequacy ratios remained robust, comfortably exceeding all regulatory requirements, which reflects its financial stability.

Acting CEO Udesh Gunawardena said: “Despite facing significant economic headwinds in the first half of the fiscal year, our strategic initiatives and unwavering commitment to operational excellence have enabled us to deliver robust financial results. We have focused on improving our collection strategies, optimising asset quality, and strategically managing our balance sheet. As we move forward, People’s Leasing and Finance is well-positioned to capitalise on the emergent economic recovery and continue providing exceptional value to our customers, people, and stakeholders.”