People’s Leasing & Finance PLC

Annual Report 2018/19

සිංහල  |  தமிழ்

1

Building a legend

About People’s Leasing

What does it take to build a legend?
In our experience it is a journey –
one that begins with our Vision and Mission.

 

Our Vision

To become legendary in the financial-service scene as a provider of customer-friendly, creative and innovative total solutions

Our Mission

Dedicated value-added customer service to accomplish organisational service excellence whilst maintaining a sustainable competitive advantage

The legend so far…

As legends go, People’s Leasing has already made a name for itself as a trusted brand

 

Brand strength

We are one of Sri Lanka’s largest non-bank financial institutions (NBFI) with a Brand value of Rs. 8.7 billion.

75%-owned by People’s Bank

The parent lends us its:

Credibility


Capital


Liquidity


Stability

People’s Leasing’s differentiators:


Skilled and engaged workforce


Diversified portfolio


Agility in responding to industry trends


One stop financial solutions provider


Being a responsible corporate citizen


 

Most rated NBFI

People’s Leasing is the most rated non-bank financial institution in the country with three ratings:

AA-(lka)

from Fitch Ratings Lanka Limited

B-

one notch below Sovereign from
Fitch Ratings International

 

Our culture

Our focus on financial inclusion governs our operations, prompting us to respond to all stakeholders with deliverable core values of –

Guided by our Vision, Mission and values, as a responsible financial services provider, we offer responsible lending and financial protection solutions abiding by relevant legislation, integrating environmental, social and governance (ESG) criteria into business operations and create value for our stakeholders through our tested processes, committed staff and the state-of-the-art technology.

 

GRI 102-5

Group structure

To avoid duplicating the activities of our major shareholder we limit our services to those who are not a key stakeholder for People’s Bank.

Subsidiaries Associate
People’s
Insurance PLC
People’s
Micro-commerce
Ltd.
People’s
Leasing Fleet
Management
Limited
People’s Leasing
Property
Development
Limited
People’s Leasing
Havelock
Properties
Limited
Lankan Alliance
Finance Limited
People’s
Merchant
Finance PLC
Ownership
Ownership
Ownership
Ownership
Ownership
Ownership
Ownership

 

More details of our subsidiaries and associate

GRI 102-7

Prudent growth

The journey so far has been eventful. Established in 1995, People’s Leasing was registered in 2012 as a licensed finance company under the Finance Business Act No. 42 of 2011.

Customer
touchpoints
Employee
number
Capital Deposits Subsidiaries/
associates
Product
range

Then – 1995

1 branch in Kandy 3 Rs. 10 million Deposits not
accepted
None Lease
Hire purchase

 

Now – 2019

103 branches 2,329 Rs. 28,603 million Rs. 88 billion 6 subsidiaries 1 associate Leasing Loans
Islamic finance
Deposits
Margin trading
Factoring

 

Future focus

Digitalising the
customer journey
Empowering
recovery
process
Strengthening
our team with
new cadre
Improve
credit quality
through
focused
training
Continued
adherence to
regulatory
capital adequacy
requirements
Diversifying
our product and
service offer
in line with
our customer
expectations
Strategising
our marketing
initiatives by
leveraging
Group synergy
and our
competitive service
environment
Investing in
multimodal
digital
presence
Increasing
social media
presence
Building a
competent,
engaged, and
motivated
team
Rolling out
products across
more branches
Continuing our
commitment to
be a responsible
corporate citizen
GRI 102-7

Where we stand

Given below is a summary industry comparison of key performance indicators.

2018/19 2017/18
Indicator Industry* People’s Leasing Industry* People’s Leasing
Business volumes (Rs. billion)
Loans and advances 1,137.0 151.7 1,057.1 140.2
Investments 109.7 15.4 118.1 13.8
Deposits 716.8 88.4 686.7 69.8
Borrowings 463.8 48.5 396.0 55.7
Capital 183.7 28.6 169.7 27.0
Total assets 1,431.3 172.5 1,355.0 160.7
Profitability (%)
Return on assets (ROA) 2.7 3.9 3.2 3.7
Return on equity (ROE) 12.1 15.9 16.1 16.7
Net interest margin (NIM) 7.4 9.7 7.7 8.4
Core capital ratio 9.9 14.4 12.4 18.4
Total risk weighted capital ratio 11.2 15.2 13.1 16.5
Source of funds (%)
Total deposits 52.5 53.4 54.83 45.7
Total borrowings 34.0 29.3 31.62 36.6
Capital elements 13.5 17.3 13.55 17.7
Use of funds (%)
Loans and advances 79.4 87.9 78.0 87.2
Investments 7.7 8.9 8.7 8.6
Other assets 12.9 3.2 13.3 4.2
Asset growth 5.6 7.4 11.8 7.3
Loans and advances (YoY growth) 7.6 8.2 9.8 5.2
Asset quality (%)
Gross NPA ratio 7.7 3.9 5.9 2.7
Net NPA ratio 2.4 0.9 1.5 0.7

*Source: Central Bank of Sri Lanka Annual Reports 2017 and 2018 (figures as at 31 December 2017 and 2018).

 

As evident across a gamut of indicators, People’s Leasing occupies an enviable position in the NBFI sector of the country.
Business volumes
People’s Leasing accounts for 12.3% of deposits, 13.3% of loans and advances and 12.1% of total assets of the industry.
Profitability
People’s Leasing is one of the most profitable players with well above the industry average ROA and ROE levels.
Source of funds
A focused approach based on a long-term strategy saw deposit base growing by 26.6% YoY against the industry growth
of mere 4.4%.
Use of funds
Interest earning assets accounts for 94.8% of the total assets, depicting robustness of our financial intermediation.
Asset quality
Possesses a loans and advances portfolio with one of the highest levels of asset quality and with a provision cover of 70%.
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