People’s Leasing Company records Rs. 1.7 b after tax profit in 1Q

The  environs  of  Borella  was  energised  and   illuminated   with  a new  kind    of business panorama     when  People’s  Leasing  Company Limited (PLC)  rose  ceremoniously  consolidating  its  financial  stability with  a state  of  the  art 12  storied Head Office building equipped with the  most  sophisticated  and  business efficient   systems  and  processes  that  could  move  PLC  to  a new  dimension  in the  world  of  leasing.

All  that one  is looking  for  in  leasing no  matter to  what  extent  of  flexibility, is obtainable  under  one  roof  with  excellent  advise  and  expeditiously.

People’s Leasing records a staggering Rs. 1.7 billion after tax profit in the 1st quarter of 2011/12. This includes a one-off gain of Rs. 1.1 billion from the reversal of general provision for credit losses due to an estimate change. The company’s profit has recorded a significant growth of approximately 100% (excluding one-off gain) when comparing with the corresponding period of the last year.

The company’s impressive financial performance for the year 2010/11 is as follows:

Revenue Rs. 10 billion

Profit (before tax) Rs. 3.7 billion

Profit (after tax) Rs. 2.6 billion

Even though  still an unquoted  company, People’s  Leasing  Company is  placed  among  the  best  10  financial institutions in  the  country, even more stabilised  and  business  efficient  than  some commercial  banks.

The total grantings for the first quarter in 2011/12 was Rs. 13 billion compared to Rs. 6 billion in corresponding period of 2010/11.

With  a very  positive  and  impressive  growth  and  development in all  aspects  of  financial  performances,  PLC  also  records   an  improvement in  their  non-performing   ratio  moving  from  3 %  in  2010 March  to  almost  1  %  in June  2011. This  is mainly due  to  the  high  focus  on  credit quality  and recovery efforts,  favorable post  war  business   climate   and  the    opening  up  of     the   pre-war   dormant  1/3rd  of land  in  the  north  for  business  opportunities.

People’s  Insurance  Limited, People’s Finance PLC and  People’s  Leasing  Fleet  Management  Limited in the PLC group of companies have positively  contributed  towards  the  remarkable  growth  and  development .

The  group enjoys  nearly  a  25%   market  share  of  the  leasing  industry   with  an  asset value  of over  Rs.33  billion as at 31 March 2010  growing  to  an  incredible level of  Rs. 76  billion   as  at  30  June  2011.

With  the dynamic  leadership  and  visionary  guidance  of  its  mentor  Chief Executive Officer/GM, D.P  Kumarage;  PLC  is  now  poised  to  move the leasing  business horizon to greater heights pushing  boundaries  taking  a quantum leap   towards  what  may be termed  a  “Revolutionary  leap frog step in the  Leasing  Industry.”