An Overview of Lease Finance of ULC

Abstract

This report emphasizes on overview of lease financing and financial performance of ULC in Bangladesh 29 NBFIs are now contributing to the growth of national economy. United leasing company Ltd as a leading and pioneer NBFI started their operation in 1989 and still they are one of the dominating position in the NBF! sector as well as contributing to the prosper of economic development. Their success in this industry has inspired others to invest their capital in a profitable way. ULC was able to achieve its business target in the year 2010 which was a major challenge considering the business environment. During 2010, SME finance achieved significant growth by expanding small clients network through new branches in different places in Bangladesh. To encourage women entrepreneur the company developed separate marketing and credit teams comprising of female employees only. Two insurance interlaced deposit products were launched in the market to provide the small depositors with value added service in addition to savings. The channel financing operation, started in 2005, continued to achieve growth. Corporate financing also grew. At the end of year 2010, the company's profit growth was 171.82%. Reducing the cost of find was a major challenge which was met successfully in 2010 while maintaining a similar portfolio. Operating expenses increased by 20.29% mainly due to opening new branches. The company intends to establish a stronger footprint across the country and is better prepared to expand its operation throughout the country.