The results achieved reflect the Group’s commitment to stakeholders and the ingenuity of its team who stepped up to deliver an outstanding performance.
Highest profit recorded
People’s Leasing & Finance navigated a year of unprecedented concessions to customers and converging challenges to record the highest profit in the history of the Group of Rs.5,596.33 million for the financial year. A focus on stakeholders underpinned the realignment of strategy to a business landscape that changed in an unforeseen manner.
People’s Leasing also changed its leadership as Shamindra Marcelline, an experienced banker, was appointed as the new Chief Executive Officer in November 2020.
Partnering for Growth
People’s Leasing’s role in a recovering economy encompasses assisting customers in adversely affected sectors to stay afloat while also supporting growth in thriving sectors of the economy. The recovery and credit origination processes have been strengthened, supporting development aligned with the Group’s risk appetite. An island-wide network supports inclusive and sustainable financing, uplifting communities, and economic sectors with a broad portfolio of structured products that clients across different market segments readily understand.
A strong balance sheet supports the Group’s growth plans while providing sufficient headroom for implementing transformative strategies, particularly in people development and technology.
Performance in unusual times
People’s Leasing Group achieved the highest profit after tax in its history of Rs.5,596 million, an outstanding 55.81% growth year on year despite the challenging environment and concessions granted to customers.
Although low business volumes impacted the Group’s top line, declining interest rates, default interest income, strengthened recovery efforts facilitated significant impairment reversals, supporting bottom-line solid growth.
Return on Assets and Return on Equity of the Group improved to 4.26% and 14.83%, respectively, setting a new bar for performance.
Loans, Leasing, and Hire Purchase
This key business segment made a strong recovery in the 4th quarter to reach a new milestone of disbursing Rs.10.90 billion despite the challenges, reversing the declining trend experienced in the first three quarters. The Bank maintained a strong focus on credit quality, which enabled the minimizing of non-performing advances. It was a reflection of improved NPA ratios. This resilient business segment remains the market leader, accounting for the most extensive lending portfolio of the NBFI sector.
Margin trading recorded a notable improvement during the year with the rebound of CSE. The Gold loan portfolio more than doubled to Rs.1,993.51 million by the close of the year compared to Rs.895.70 million last financial year.