People’s Leasing & Finance records historic profit in FY 2021/22

Despite uncertainties and many challenges, People’s Leasing & Finance PLC, the trusted leader in Sri Lanka’s Non-Banking Financial Institution (NBFI) sector, has once again created history by concluding the Financial Year (FY) 2021/22 with a record-breaking

Profit-After-Tax (PAT) of Rs. 4.66 billion, the highest profit, the Company has recorded ever since its inception in 1996.

The PAT has witnessed a remarkable Year-on-Year growth of 15.5% while the Profit-Before-Tax (PBT) is recorded as Rs. 6.65 billion, representing impressive Year-on-Year growth of 13.2%.

Commenting on the all-time high financial results, Chief Executive Officer Shamindra Marcelline said, “Our ground-breaking financial performance during the FY 2021/2022 is a reflection of employee commitment, alignment of strategies to address stakeholder concerns, and restatement of policies and procedures to ensure a conducive operating environment. The year, akin to the previous year, brought daunting challenges amid the third wave of Covid-19 that weighed down the performance of the country’s macroeconomic indicators leading to a difficult environment for businesses to operate. However, as a Company, we overcame these challenges and recorded historical financial performance.”

Marcelline noted that the impressive PAT is also achieved whilst ensuring the well-being of its internal staff of over 2,000, and the local community in this difficult juncture.

The Company’s non-performing assets ratio witnessed a decline reflecting the efforts and resources channeled to managing credit risk and improving recoveries. Impairment charges on loans and receivables declined by 37.2% from Rs.1,044 million to Rs.656 million.

During this period, the Company managed to stay above the requirements imposed by the Central Bank of Sri Lanka in terms of capital and moratoria, whilst maintaining Non – Performing Loans (NPL) ratio well below the industry average.

Further, the Company kept on creating value for its stakeholders throughout the year by adopting stakeholder-focused leadership that mainly targets risk management, measures to accelerate growth momentum, and strengthening policy framework.

Marcelline stated, “The outlook appears to be extremely challenging for the Company. Prevailing inflationary pressure along with increased policy rates are expected to impact the loan book of the Company. To offset this impact, we would be looking at alternate avenues to generate revenue.”

The Company continued its digitalisation process throughout the year and as a part of the process, it launched both internal and external customer-centric applications. It has now become a key priority in going forward to drive cost efficiencies and to enhance engagement with customers.

The Company remained supportive of all its customers during the financial year and provided over 38,000 customers with moratoriums worth Rs. 8.39 billion. Further, in line with the Central Bank of Sri Lanka directives, the Company suspended vehicle seizings and rescheduled loan facilities.

Like any other year, People’s Leasing & Finance launched several CSR projects giving back to the society, particularly in the Northern, Eastern, Western and Southern regions.

In spite of challenges faced throughout the year, the resilience of People’s Leasing & Finance was portrayed through various recognitions and accolades garnered in FY 2021/22. The Company was placed among the top 20 companies out of 75 Public Limited Companies in Sri Lanka in ‘Transparency of Corporate Reporting (TRAC) for the year 2021’ organised by Transparency International. People’s Leasing was also ranked 27th amongst the ‘TOP 40’ Winning Listed Companies in Sri Lanka 2020/21 chosen by the Business Today magazine on the basis of the Best Financial Performance. Furthermore, People’s Leasing & Finance CEO Shamindra Marcelline was awarded the ‘CEO of the Year 2022’ title by the ‘Sri Lanka Best Employer Brands Award 2022’, an event that was hosted by the World HRD Congress, for his true leadership in guiding the Company towards the success.

People’s Leasing & Finance PLC incorporated in 1995 as a private limited liability company fully owned by People’s Bank, today indeed has positioned its brand at the very heart of Sri Lankans. Being a key player in financing the country’s public transport sector People’s Leasing launched a new relief scheme “Hitha Mithuru” for private passenger transport customer segment to conquer the difficulties as they rebuild their businesses post COVID-19. With a strong capital position and a balance sheet, People’s Leasing & Finance is one of the highest-rated NBFI in the country, with an “A+(Ika)” rating from Fitch Ratings Lanka Ltd. People’s Leasing & Finance PLC will continue to service people of Sri Lanka specifically the SME sector, supporting them to grasp mutual goals and aspirations.

Sujeewa Rajapakse –Chairman People’s Leasing & Finance PLC

Shamindra Marcelline – Chief Executive Officer/General Manager-PLC