Flat Quarter

Nov 01, 2012 (LBO) – Profits at Sri Lanka’s People’s Leasing and Finance group, the country’s largest non-bank lender was 795 million in the September 2012 quarter rupees barely changed from 790 million rupees a year earlier. Leasing and higher purchase rentals outstanding were also flat at 79 billion rupees by end September from 78.9 billion rupees in March.

Sri Lanka’s new vehicle registrations have plunged this year after the state raised import taxes, the rupee depreciated and interest rates rose.

The firm reported earnings of 49 cents per share for the quarter. For the six months to September profits fell 40.2 percent to 1.5 billion rupees giving earnings of 92 cents per share.

The stock closed at 12.40 rupees, down 10 cents Wednesday.

Group interest income rose 24.6 percent to 4.0 billion rupees but interest expenses rose at a faster 46 percent to 2.4 billion rupees allowing net interest income to grow only 0.9 percent to 1.56 billion rupees.

Fee income rose 78 percent to 516 million rupees. Profits from Islamic finance, which is also classified as fee income rose 122.2 percent to 200 million rupees.

Loan loss provisions rose to 189 million rupees from 23 million rupees a year earlier