People’s Leasing Achieves Rs. 3.02 Billion Profit After Tax in FY 2022/23 Despite the Challenges
People’s Leasing & Finance PLC (PLC) has successfully concluded the financial year 2022/23 with an impressive profit after tax (PAT) of Rs. 3.02 billion. Throughout the year, PLC’s performance exhibited resilience and strength, contributing to this outstanding achievement.
Despite challenges in the operating context during the first two quarters, the company’s performance notably improved from the third quarter onwards, culminating in a PAT of Rs. 1.38 billion in the fourth quarter of the financial year 2022/23. The People’s Leasing Group achieved an overall PAT of Rs. 3.44 billion for the fiscal year ending on March 31, 2023.
The economic crisis that gripped the Sri Lankan economy in early 2022, with depleted foreign currency reserves and rising inflation, posed significant challenges. However, through prompt and decisive actions, People’s Leasing effectively insulated its operations from the surrounding challenges.
To manage risk exposures in the face of limited loan expansion prospects, People’s Leasing implemented a selective lending approach for long-term asset portfolios. Despite the economic difficulties, the company achieved a year-on-year growth of 26.44% in top-line interest income, reaching Rs. 30.2 billion. Effective cost savings initiatives resulted in a single-digit operational expense growth of 6%, even amidst extreme inflationary conditions. Stringent recovery efforts further ensured portfolio quality and led to a 13.26% reduction in impairment charges for loans and other losses.
Pradeep Amirthanayagam, Chairman of PLC, emphasized the company’s focus on strengthening its operational structure across credit risk management, liquidity buffers, and cost containment. This proactive approach enabled PLC to safeguard its business and mitigate potential disruptions and uncertainties.
Shamindra Marcelline, Chief Executive Officer/General Manager of PLC, highlighted the comprehensive efforts undertaken to safeguard the business and foster an environment conducive to sustainable results, even under high-stress conditions.
Throughout the year, People’s Leasing maintained strong liquidity and capital positions, with capital adequacy ratios consistently exceeding regulatory requirements. The Tier 1/core capital ratio and total capital ratios remained above 10.00% and 14.00%, respectively, reflecting efficient portfolio management strategies.
The remarkable performance of People’s Leasing in FY 2022/23 exemplifies their resilience and commitment to delivering sustained results. The company remains focused on upholding its financial strength while navigating challenging economic circumstances.
PLC is a leading Non-Bank Financial Institution in Sri Lanka and the flagship subsidiary of the People’s Bank, which is one of the largest state-owned banks in the country. PLC commenced business operations in 1996 and was listed on the Colombo Stock Exchange in 2011. PLC has grown to become a diversified non-bank financial powerhouse with six subsidiaries in allied areas of specialization, including an overseas venture in Bangladesh.