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

Tuesday, 30 August 2011 00:00 - - {{hitsCtrl.values.hits}}

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.”