PLC Posts Outstanding Q2 Performance Highlighting Resilience and Potential for Growth

People’s Leasing & Finance PLC (PLC) reported strong financial performance for the second quarter of the financial year 2023/24, recently, demonstrating unwavering resilience and a commitment to excellence, achieving significant year-on-year increases in Profit After Tax (PAT) for both the company and the Group.

For the first six months of FY 2023/24, PLC recorded a robust Profit After Tax (PAT) of Rs. 1,100 million, marking an impressive 62.0% increase compared to the corresponding period in the previous financial year. The second quarter was particularly outstanding, with a 54.6% increase in PAT, reaching Rs. 767 million, contributing significantly to profitability for the period ending 30th September 2023. Meanwhile, the PLC Group also achieved a Profit After Tax of Rs. 1,678 million during the first six months of FY 2023/24, reflecting a substantial year-on-year increase of 35.8%. Net Interest Income for the Group for the period ending 30th September 2023 reached Rs. 6,495 million.

Interest Income for the half-year ending 30th September 2023, witnessed a year-on-year increase of 3.7%, reaching Rs. 14,714 million. This increase can be attributed to a substantial rise in investments, driven by escalated interest rates in the country. The Company achieved significant year-on-year profit growth through improved collections and  intensified credit quality which led to 91.3% reduction in impairment charges and other losses on loans and receivables, recorded at just Rs. 162 million, as at 30th September 2023.

An 8.2% decrease in Interest Expense during the quarter compared to the corresponding quarter of the previous financial year is indicative of PLC's ability to capitalize on the recent policy rate drop through prudent management of funding lines. This enabled PLC to record Rs. 2,854 million Net Interest Income during the second quarter up by 8.6% compared to the second quarter of Financial Year 2022/23.

In spite of the inflationary environment in which it operates,  PLC successfully curtailed the growth in operating expenses to 3.8% compared to the same period in FY 2022/23 owing to the improved efforts to increase efficiency through digital initiatives, right-sizing of branches, and improvements in internal processes, . Additionally, operating expenses of the Group experienced a modest increase of 2.4% compared to the same period in the previous financial year.

PLC’s Total Asset Base as at 30th September 2023 was Rs. 153,817 million, while Total Loans and Receivables  amounted to Rs. 100,833 million, consolidating its position as one of the largest loans and receivables portfolios in the industry, despite limited business expansion on account of the challenging economic environment. The Total Asset Base of the Group as at 30th September 2023 was Rs. 179,758 million, while the Group’s Total Loans and Receivables portfolio amounted to Rs. 113,512 million.

PLC’s concerted efforts with regard to collections enabled it to manage a majority of funding requirements via collections, and thus remain vigilant in growing the Deposit Base amidst a high interest environment. Nevertheless, deposit base remained robust at Rs. 93,197 million as of 30 September 2023. The Group’s Deposit Base also stood at Rs. 101,101 million as of 30th September 2023. Furthermore, PLC implemented a highly disciplined strategy to liquidity management in the middle of a highly volatile and complex business endeavor and maintained capital adequacy ratios well ahead of the regulatory minimums at the end of Q2 to guarantee financial stability..

Commenting on the financial performance, CEO/General Manager at PLC, Shamindra Marcelline said, “Our exceptional Q2 performance underscores our ability to navigate a complex, dynamic, and challenging business landscape. It also demonstrates our unwavering commitment to our valued customers and the strength of our operational fundamentals. Even in the face of adversity, we remain steadfast in delivering financial solutions that empower individuals and businesses, contributing to the economic prosperity of all Sri Lankans.” These remarkable financial results highlight PLC’s unwavering commitment to delivering financial solutions, fostering growth, and contributing to the economic prosperity of all Sri Lankans. The company’s resilience, strategic adaptability, and dedication to excellence continue to be the driving forces behind its success. Accordingly, PLC remains a leader in the non-banking financial services sector, embodying innovation and trust, and enriching lives.

About PLC

People’s Leasing & Finance PLC, a licensed non-banking financial institution in Sri Lanka, is renowned for its innovation and unwavering commitment to providing tailored financial solutions. With a solid foundation, a diverse product portfolio, and a commitment to excellence, PLC has emerged as a leader in the financial services sector. As a subsidiary of People’s Bank, PLC continues to strengthen its position as a trusted and respected provider of financial services, fostering growth and prosperity for the people of Sri Lanka.