People’s Leasing profit jumps 49.9% in the December 2025 quarter as Sri Lanka’s largest non-bank lender recorded strong growth in interest income, according to interim financial statements released to the market.
People’s Leasing profit growth driven by higher interest income
People’s Leasing profit jumps 49.9% in the December 2025 quarter, underscoring a strong earnings recovery for Sri Lanka’s largest non-bank financial institution amid improving credit conditions and higher interest income. The People’s Leasing and Finance Group reported profits of 1.47 billion rupees for the quarter, reflecting robust performance across its core lending operations.
The earnings improvement was largely supported by a sharp expansion in interest income, which rose 70.7 percent year-on-year to 12.4 billion rupees. The growth reflects increased lending activity, higher yields on advances, and improved asset deployment during the period. As borrowing demand gradually strengthened, the group was able to expand its interest-earning portfolio despite a challenging operating environment.
Earnings per share for the quarter reached 0.66 rupees, marking a 50 percent increase compared with the corresponding quarter of the previous year. The stronger profitability translated into steady market performance, with the company’s shares closing unchanged at 26.00 rupees on Monday, signaling investor confidence in the group’s financial stability.
While interest income recorded a sharp rise, interest expenses also increased during the quarter. The group reported interest expenses of 5.67 billion rupees, up 89.7 percent from a year earlier. Market participants attributed the higher funding costs to elevated deposit rates and increased competition for liquidity within the financial sector. Despite this, net interest income expanded significantly, highlighting the group’s ability to manage margin pressures effectively.
Net interest income climbed 57.4 percent to 6.69 billion rupees, reflecting the positive spread between lending rates and funding costs. Analysts noted that this growth demonstrates operational resilience, particularly at a time when many financial institutions are navigating tighter margins and evolving regulatory requirements.
Taxes on financial services also rose during the quarter, increasing 63 percent to 872 million rupees. Even after accounting for higher taxation, profits before income tax rose 56 percent to approximately 2.5 billion rupees. The increase underscores the group’s capacity to absorb rising statutory costs while maintaining profitability.
The performance comes at a time when Sri Lanka’s non-bank financial sector is gradually stabilizing after a period of economic stress. Improved macroeconomic indicators, easing inflation, and a more predictable interest rate environment have supported recovery in credit demand. As a market leader, People’s Leasing has benefited from these conditions through expanded lending and improved asset quality.
Industry analysts point out that the group’s diversified portfolio, which spans leasing, hire purchase, and other financial services, has helped mitigate sector-specific risks. Strong brand recognition and an extensive branch network have also supported deposit mobilization and customer retention, contributing to income growth.
The fact that People’s Leasing profit jumps 49.9% also highlights the broader recovery trend within Sri Lanka’s financial services industry. Non-bank lenders are increasingly positioning themselves to capture growth opportunities as economic activity gradually normalizes. However, analysts caution that funding costs and regulatory compliance will remain key factors influencing earnings momentum in coming quarters.
Looking ahead, market observers expect the group to focus on maintaining asset quality, strengthening capital buffers, and managing funding costs to sustain profitability. While interest income growth has been a key driver in the December quarter, future performance will likely depend on loan growth sustainability and cost efficiency.
Overall, the December quarter results signal a solid turnaround for People’s Leasing and Finance Group. With improved earnings, stable share price performance, and expanding net interest income, the group appears well-positioned to navigate the evolving financial landscape while delivering value to shareholders.