People’s Leasing and Finance made a commendable achievement during the financial year 2021-2022.
Despite uncertainties and many challenges, People’s Leasing & Finance has once again created history by concluding the Financial Year (FY) 2021/22 with a record-breaking Profit- After-Tax (PAT) of 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 percent, while the Profit- Before-Tax (PBT) is recorded as 6.65 billion rupees, representing impressive Year-on-Year growth of 13.2 percent.
Shamindra Marcelline, Chief Executive Officer, People’s Leasing & Finance 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, we overcame these challenges as a company and recorded historical financial performance.”
He also added that the impressive PAT is also achieved while 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 percent from 1,044 million rupees to 656 million rupees.
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 while maintaining Non – Performing Loans (NPL) ratio well below the industry average. The Company kept 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 extremely challenging for the Company. Prevailing inflationary pressure and increased policy rates are expected to impact the Company’s loan book. To offset this impact, we would be looking at alternate avenues to generate revenue.”
The Company continued its digitalization 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 to drive cost efficiencies and enhance engagement with customers. The Company remained supportive of its customers during the financial year and provided over 38,000 customers with moratoriums worth 8.39 billion rupees.
People’s Leasing was ranked 27th amongst the ‘TOP 40’ Winning Listed Companies in Sri Lanka 2020/21 chosen by the Business Today magazine based on the Best Financial Performance.