Today: July 17, 2018, 1:55 pm
  
Business

Group Lease PCL (SET:GL) Q2 Profits Hit New High

Group Lease PCL (SET:GL) Q2 Profits Hit New High
PR-Inside.com: 2017-08-17 06:01:32
BANGKOK - (ACN Newswire) - SET-listed digital finance firm Group Lease Public Company Limited ("GL"; SET: GL) has reported a 337.69 million baht net profit in the second quarter this year, up 31.70% from the same period last year, representing the 11th consecutive quarter of new record-high profits.

"The Q2/2017 profits have resulted from steady improvements in all the markets in which we operate," stated Mr. Tatsuya Konoshita, chairman of GL's executive committee. GL's corporate footprint now covers a total of seven Asian markets, including its home base in Thailand, neighboring Cambodia, Laos, Myanmar, Singapore, Indonesia and Sri Lanka.


In an official filing with the Stock Exchange of Thailand (SET) on August 15, GL said its consolidated hire purchase interest income stood at 525.89 million baht, up 33.61 million baht or 6.83% from the same period last year, due mainly to increases in interest income from its subsidiaries in Cambodia and Laos by 14.86 million baht and 13.18 million baht respectively.

The Thailand-based operations, particularly by GL's subsidiary Thanabun, have also seen significant improvement. Interest income from assets-backed loans (where borrowers pledge their motorcycles as collateral) rose 12.41 million baht or 46% to 39.37 million baht. The bulk of this increase or 12.02 million baht was accounted for by Thanabun while the remaining small portion of 0.39 million baht came from GL's Cambodian subsidiary which just launched this new product in Q2/2017.

The filing pointed to Micro-finance as a successful new product launched by GL's subsidiary in Myanmar which for the first time generated interest income of 6.22 million baht in Q2/2017. This new product consists of an average 50-week micro loans made to women in groups of five members each collectively responsible for each other's repayment on a weekly basis. The micro loans were considered very successful because they carried 0% NPL.

Another highlight of the Q2/2017 results was 12.18 million baht worth of "consumer finance interest income" derived from GL's joint venture with its strategic partner JTrust Asia (JTA) in Indonesia.

Established last year, the multi-finance joint venture, PT Group Lease Finance Indonesia (GLFI) is a fees-based operation engaged in marketing, credit screening and collecting loan claims targeting agriculture-related equipments and motorcycles while the financing is provided by PT Bank JTrust Indonesia, a banking subsidiary of GL's strategic partner J Trust Co. which is listed on the Tokyo Stock Exchange.

While GL considers Myanmar as a high-growth market, Indonesia is seen as carrying even more substantial growth potentials because of its huge population of more than 250 million. J Trust Co. President & CEO Nobuyoshi Fujisawa stated recently that the Indonesian joint venture will grow to become GL's largest portfolio and biggest profits contributor over the next 2-3 years.

Meanwhile, interest on loans to SME borrowers in Singapore and Cyprus in Q2/2017 totaled 125.99 million baht, up 8.88% from the same period last year.

GL booked a 36.73 million baht profit share from its 29.99% investment in Commercial Credit & Finance (CCF) in Sri Lanka in this quarter, which marks a drop of 24% from the previous quarter, largely because of a two-week national holidays in April in that country during which interests on loans to CCF's clients were exempted.

According to Mr. Konoshita, the latest record-high profits were achieved in spite of higher administrative expenses and legal fees that were incurred because of GL's aggressive overseas expansion in this quarter. These expenses totaled 271.89 million baht in this quarter, or 25.12% increase from the same period last year.

"However, the service and administrative expenses grew at a slower rate than revenue, reflecting cost-effective management," the SET filing stated.

Operations in Cambodia and Thailand still constituted GL's main businesses, accounting for 49.3% and 45.3% shares respectively of its total outstanding portfolio of 10,246 million baht while Laos, Myanmar and Indonesia accounted for 3.7%, 1.1% and 0.7% respectively.

About Group Lease PCL

Group Lease Public Company Limited was established on 6th May 1986 and listed on the Stock Exchange of Thailand in 2004 (SET:GL). The company has expertise in hire-purchase of motorcycles, as it has been in the motorcycle leasing business for over 20 years, with motorcycle brands for financing including Honda, Yamaha, Suzuki, Kawasaki.

In 2007, the APF group became the major shareholder holding around 65% of total shares. In 2012, GL announced a long-term business plan to become the leading finance company in the Southeast Asian region. To do so, GL formed Group Lease Holdings Pte. Ltd. (GLH), a Singapore holding company, as headquarters for its expansion in other countries. For more information, please visit www.grouplease.co.th.

Press Information


Published by
ACN Newswire
+65 6304 8926
e-mail
www.acnnewswire.com



# 733 Words
Related Articles
 
More From Business
SD-WAN Market Leader Aryaka Further Expands within [..]
SAN MATEO, Calif., July 17, 2018 (GLOBE NEWSWIRE) -- Aryaka®, the leading global SD-WAN provider, announced today it has further [..]
Result of Riksbank certificate sale
CERTIFICATE MATURITY180725FIXED RATE-0.50 %OFFERED VOLUME441.800 BLNTOTAL BID AMOUNT377.600 BLNACCEPTED VOLUME 377.600 BLN PERCENTAGE ALLOTTED  [..]
The Naval Air Systems Command (NAVAIR) Intends [..]
SAN DIEGO, July 17, 2018 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security [..]
Conditions for sale of Riksbank certificates
AUCTION DATE:JUL 17, 2018START DATE:JUL 18, 2018MATURITY DATE:JUL 25, 2018NOMINAL AMOUNT:441.8 BLNFIXED RATE:-0.50% ALL [..]
Yara reports improved deliveries but lower margins
Oslo, 17 July 2018: Yara International ASA delivered lower second-quarter results compared with a year earlier. Net income after [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.