People’s Leasing & Finance sees 42.4% profit growth for 1H25

People’s Leasing & Finance PLC reported a topline income of Rs.12,676 million, resulting in a profit of Rs.1,566 million. 

This is a 42.4 percent increase in profitability compared to the same period in the year prior. This achievement was fuelled by a robust second quarter, during which the net interest income rose by 19.5 percent. 

The company’s cost-to-income ratio reflects operational efficiency, with the operating income growing by 21.5 percent, with significant contributions from other income, while the operating expenses rose by a contained 15.7 percent for the period ended September 30, 2024, due to the disciplined cost management. 

A standout aspect of the company’s performance was the reversal of impairment charges by 63.6 percent during the period ended September 30, 2024. This achievement reflects an effective recalibration of credit provisioning, driven by stronger collections and improved credit quality. This was driven by the company’s utilisation of provisioning for credit losses as a KPI to control impairment risks, demonstrating People’s Leasing & Finance’s agile and strategic approach to risk management. 

During the period under review, the company’s loans and receivables portfolio also grew by 9.9 percent, further strengthening the balance sheet, resulting in total assets rising to Rs.147,559 million, which is a significant increase from the figure reported as at March 31, 2024. 

Discussing the exceptional performance delivered during the period under review, CEO Sanjeewa Bandaranayake said, “As one of Sri Lanka’s leading non-banking financial services providers, we have continued to prioritise resilience and innovation. Our ability to enhance profitability, strengthen our balance sheet and adapt to changing economic conditions reflects our unwavering commitment to delivering value to our customers and stakeholders.”