Despite unforeseen challenges, People’s Leasing closes the Third Quarter of the Financial Year 2022/23 on a commendable note
With a notable quarterly profit of Rs. 959 million for the third quarter of the financial year 2022/23, People’s Leasing & Finance PLC’s (People’s Leasing/PLC) Profit After Tax (PAT) for the period ended 31, December 2022 reached Rs. 1,637 million, demonstrating the Company’s sustained ability to manage its core drivers in the midst of turbulent times while prudently managing the Assets & Liabilities.
Despite the unfavourable socio-economic outlook prevailing in the country, strengthening top line interest income by an increase of 28.3% is noteworthy. Meantime, the Company successfully contained operational costs at a single digit level amidst the country’s growing inflationary situation through digitalisation drive and a multitude of other cost containment efforts unanimously implemented by the companywide staff. The first two quarters had a lower performance owing to the prevailing crisis situation in the country, which had a negative impact on the Company. Nevertheless, under the wings of the new leadership, PLC was yet again able to achieve the remarkable third quarter results that would invariably contribute towards progressive year-end results.
The Chairman, Pradeep Amirthanayagam made the following remarks in response to the third quarter turn-around financial results: “Our satisfactory financial performance during a quite challenging period is a quiet reflection of our deep commitment to review existing policies and procedures, re-alignment of our strategies to effectively respond to ever demanding stakeholder concerns and most importantly, the cooperation of our own employees to effectively steer change towards a more resilient workplace.
Further, Chief Executive Officer Shamindra Marcelline added that a noteworthy PAT is achieved amidst managing the liquidity position of the Company while ensuring the well-being of the entire workforce of over 2,000 and uplifting the lives of local communities where they operate, at this milestone juncture.
The Company also witnessed a reversal in impairment charges during the quarter compared to significantly high impairment charges during the first six months, reflecting the mutually set untiring efforts and effectively mobilised resources to manage credit risk and improvements made on collections. During the period, the Company also managed to exceed the minimum standards imposed by the Central Bank of Sri Lanka in terms of disbursing capital and offering moratoria, whilst maintaining the Non – Performing Loans (NPL) ratio well below the industry average.
Being a State-Owned Enterprise (SOE), the Company has taken a more inclusive approach in terms of responding to the public and stakeholder concerns when compared to other key players in the Non-Bank Financial Institutions (NBFIs) landscape. In fact, the company continued to create more value for stakeholders around the year by driving stakeholder-oriented leadership strategies primarily focusing on strategic risk management, action to accelerate the pace of growth and strengthening the existing policy framework.
People’s Leasing also prudently initiated several strategic Corporate Social Initiatives (CSR) initiatives that benefited many deserving local communities in the areas where it operates.
Marcelline stated, “The outlook is extremely challenging. Prevailing inflationary pressure along with increased interest rates are to impact our loan book. In order to offset this impact and to improve our revenues we are proactively exploring different avenues.”
Despite of the challenges faced throughout the year, the resilience of People’s Leasing was yet again proved through several national and international recognitions and accolades bagged during the period ended 31, December 2022. Receipt of the international accolade “European Award for Best Practices – 2022” from the European Society for Quality Research (ESQR) in Brussels, Belgium tops the list. Meanwhile, the People’s Leasing Annual Report 2021/22 was recognised as the “Best Integrated Report” in the State Owned Enterprises/Companies – Finance & Leasing Category by the Certified Management Accountants of Sri Lanka. The “Bronze Award” for Annual Report in the Non-Bank Financial Institutions Category was bestowed at the “TAG S Awards – 2022” presented by the CA Sri Lanka and the “Certificate of Merit” was awarded in the Financial Services Category at the “Best Presented Annual Report Awards” by the South Asian Federation of Accountants (SAFA).
People’s Leasing was incorporated in 1995 as a private limited liability company fully owned by the state owned People’s Bank, Today the Company is indeed positioned as the “National Leasing Brand” at the very heart of almost every Sri Lankan. People’s Leasing was the pioneer in financing the country’s private passenger transport sector. During the post COVID – 19, the Company successfully implemented the relief scheme “Hitha Mithuru” supporting the restoration of the livelihoods of the COVID-affected customers engaged in the private passenger transportation industry. With a strong capital position and a balance sheet, People’s Leasing is one of the highest-rated NBFIs in the country with an “A- (Ika)” rating from Fitch Ratings Lanka Ltd. People’s Leasing continues to empower and service the people of Sri Lanka as an inclusive financial services provider whilst contributing to the sustainable transformation of the nation.