Sri Lanka’s People’s Leasing profit down 38-pct on bad loans
ECONOMYNEXT – Profits at Sri Lanka’s Peoples Leasing and Finance Plc fell 38 percent to 713 million rupees in the June 2019 quarter from a year earlier, as bad loans spiked and loans contracted, interim accounts show.
The group reported earnings of 42 cents per share for the quarter. The stock closed at 16.10 rupees, unchanged on Wednesday.
Group interest income grew 12 percent to 8.33 billion rupees, interest expenses grew 12.8 percent to 4.2 billion rupees and net interest income grew 11.2 percent to 4.1 billion rupees.
Net earned premium at its insurance unit grew 15.1 percent to 1.27 billion rupees.
Loans and advances contracted 1.4 percent to 154.6 billion rupees.
Loan losses doubled to 1.36 billion rupees from 631 billion rupees a year earlier.
Sri Lanka is recovering from monetary instability in 2018, triggered by money printing as the economy started to recover early last year, generating a collapse of soft-peg with the US dollar.
Capital flight was worsened by a political crisis from October.
Gross assets fell 1.5 percent to 183.0 billion rupees. Net assets grew 2.1 percent to 33.6 billion rupees. (Colombo/Aug01/2019)