Sampath Leasing and Factoring completes successful year
Sampath Leasing and Factoring Ltd, a fully owned subsidiary of
Sampath Bank PLC has completed yet another successful year recording Pre
Tax Profit of Rs 232.20 million for the financial year ended December
The reported Profit after Tax (PAT) for the same period was Rs 192.39
million. This represents an increase of 51% in the PAT from the previous
year. The increase in absolute profits demonstrates the company's
ability to sustain its momentum of growth achieved last year.
W Senanayake - Chairman - Sampath Leasing and Factoring
Ltd.Aravinda Perera - Managing Director - Sampath Bank PLC
Bottom Left -Ranjith Samaranayake - Group Financial Officer
and Executive Director - Sampath Bank PLC, Roshan
Nanayakkara - Chief Executive Officer - Sampath Leasing and
The reported profit of the company for the 12 months ended December
31, 2011 is the highest in its six year history. Arthur Senanayake,
Chairman commenting on the progress said, "Leasing industry has seen
unprecedented growth levels in an economic landscape boosted by a
driving economy, which have created increased demand for commercial
vehicles. This would create opportunities for the company to make
further inroads into the leasing market through revolutionary
innovations to the leasing industry. The company's strategic focus is to
build its market share in a profitable niche market with its synergistic
alliance with Sampath Bank".
The company closely aligns itself with its parent company, Sampath
Bank PLC which is a bank with a very large regional presence. Taking
cognizance of this expanding reach Aravinda Perera, Managing Director of
Sampath Bank PLC highlighted that leasing services from Sampath Leasing
and Factoring Ltd could be availed from its window offices located
Commenting on the growth of the company, Group Financial Officer and
Executive Director of Sampath Bank PLC, Ranjith Samaranayake, commented,
"Success of the company has been augmented by the significant increase
in its loan book supplemented by the decline in the non-performing
advances. This signifies the company's continued emphasis on qualitative
lending". Elaborating further on the key financial performance
indicators he noted that the company had increased its Return on Capital
Employed and Return on Equity significantly.
Recognizing the need for an integrated information system the Company
has developed an in house solution for its leasing applications, through
its own group Company Sampath IT Solutions Ltd. This is recognized as a
sustainable critical success factor of the Company in its strategy of
growth and expansion. This would enable the company to improve its
service levels significantly whilst expanding its geographical reach.
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 December 31, 2011. The NPL
ratio achieved is also well below the reported industry average of 3.28%
for specialized leasing companies.
The company's lending portfolio consists of leasing, hire purchase
and factoring operations.
During the year 2011, the Company introduced revolutionary new
product variants to the leasing market. Roshan Nanayakkara, Chief
Executive Officer of the Company elaborated that "Click to Drive" is one
of the products, which the Company forayed where the leasing customers
could directly order a vehicle from the auctions in Japan.
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. The company is ranked amongst
the top five players in the factoring market and plans to make
significant in-roads to the market in 2012 in its efforts to build
market share significantly. Through the product styled "Support Cash"
businesses could avail itself of a funding line, which is flexible and
grows in line with the expansion of the turnover levels.