PLF turnaround

IN an unprecedented turn of events, People’s Leasing Finance (PLF) recorded a profit before tax of Rs. 79,190,327 for the six month period ending 30 September 2010. What makes this achievement a remarkable one is the contrast it offers against last year’s loss of Rs. 181,932,402 during the same period.

By Shanika Perera

The 1:1 rights issue concluded successfully in September, which drew Rs. 567,840,975, will act as an additional platform for the future success of the Company. Through this venture, PLF was able to settle all outstanding loans as well as do away with the need for borrowings for the next few months. This in turn will have a positive effect on the overall savings of the Company. These funds have been wisely invested so as to gain maximum return.

The recently introduced Debit Card with its link to the People’s Bank ATM network islandwide, its broader withdrawal facilities and International VISA status has also proved to be an added strength to the Company.

The Company’s deposit base as at the end of September was Rs. 3,376,281,434 which is yet again an impressive improvement from as recently as March this year when it stood at Rs. 1,920,182,106.

The Non Performing ratio of the Company has reduced dramatically, mainly as a result of the implementation of a structured recovery process. Further, the reduction of interest rates has lead to a decrease in the Company’s cost of borrowings, in particular the borrowing rate of deposits.

Meanwhile the total deposit liability of the Company was increased, thereby “creating an exceedingly stable financial environment within the Company that will enable PLF to move forward in a positive manner,” said D. P. Kumarage, Managing Director PLF.

The expansion of the Islamic Financial Services division and the revamping of PLF’s branches across the island will enhance convenience and accessibility thus achieving better customer satisfaction as well.

Kumarage was confident that the proposed plans for the Company’s development would enable a better quality and bigger volume of business in the months to come. All these measures coupled with the Company’s focused expansion and relocation plan as well as the strengthening of products and services will no doubt contribute to the continued success of PLF in the future.