Sampath Leasing Q411 PAT up 51% to Rs. 192 mln

The leasing and factoring unit of Sri Lanka's Sampath Bank recently reported a 51% year- on- year increase in Profit after Tax ( PAT), to Rs. 192.39 million, for the 12 months to end- December 2011. Further, a statement by the company, Sampath Leasing and Fatoring Ltd, also revealed that it showed a pre-tax profit of Rs. 232.20 million in the period under review.

Additionally noted; "The size and quality of the company’s lending portfolio also improved significantly judging by the overall increase in the lending portfolio by 167% during the year and the improvement in the non- performing advances ratio, which closed at 2.40% as at 31st December, 2011. The ( non- performing loans) ratio achieved is also well below the reported industry average of 3.28% for specialised leasing companies."

Also quoted in the company statement, Sampath Bank's Group Financial Officer, Ranjith Samaranayake, stated that the “success of ( Sampath Leasing and Factoring Ltd) has been augmented by the significant increase in its loan book supplemented by the decline in the nonperforming advances". He further highlighted significant increases in Return on Capital Employed and Return on Equity as well as a low Cost to Income ratio.

At the same time, the company's Chairman, Arthur Senanayake, commented that the “leasing industry has seen unprecedented growth levels in an economic landscape boosted by a driving economy, which have created increased demand for commercial vehicles." Also noted; " During the year the company achieved significant growth levels in its factoring portfolio wherein it focuses on lending to the small and medium term businesses on its book debts." (JH)