People’s Finance posts significant profits in 2011/12

People’s Finance PLC, a subsidiary of People’s Leasing Company, is a finance company licensed by the monetary board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.

People’s Finance PLC, was acquired by People’s Leasing Company in 2009, as a loss-making company.

“Through our operations it has successfully made a profit of Rs. 339 million this is an increase of about 217%, it is not just profitability that has shown a marked improvement but so has the other financial indicators. Shareholders received an interim dividend of Rs.1.25 per share and we will maintain a good dividend policy within the company,” said D.P. Kumarage, Managing Director of People’s Finance PLC.

People’s Finance posted an after-tax profit of Rs.339 million for the financial year ended on 31 March 2012, along with Rs. 11,455 million in grantings. “We are happy to note that the post-tax profit levels exceeded the projected profit for the year,” said Kumarage.

He added: “The non-performing ratio as of March 2012 was 1.88% and this was a decrease from a ratio of 2.39% as of March 2011, this is lower than the industry average of 5.1%. The deposits portfolio recorded a growth of over 80% to reach Rs. 10.9 billion. This increase in deposits reflects the gain in reputation of People’s Finance as one of the trusted finance companies in Sri-Lanka.”

People’s Finance PLC was also the recipient of the Silver award at the 2011 Annual Report Awards conducted by the Institute of Chartered Accountants of Sri Lanka.

“It is a matter of progressively improving the quality of reporting and transparency, and these vital factors play a direct role in the economic development of the nation as well. Greater transparency and accuracy reflected in the annual report gives a much higher credibility in the eyes of investors,” said Kumarage, speaking on the significance of People’s Finance being the recipient of this award.

The stability of People’s Finance is further strengthened by Fitch Ratings Lanka upgrading the ratings of People’s Finance to A-(lka) from BBB (lka).