* Total asset base of Rs. 85 billion; The loan portfolio stood at Rs. 73 billion
* NPL at 5.7% vs. an industry average of 12.9%
Further consolidating its previous year’s achievements of prudently managing the pandemic while delivering an excellent year-end performance, Commercial Leasing & Finance PLC (CLC) posted strong results for H1 2021/22. During the period, CLC recorded profit before tax (PBT) of Rs. 2.4 billion and profit after tax (PAT) of Rs. 1.8 billion.
This resounding performance can be attributed to exceptional portfolio management, with Non-Performing Loans (NPLs) held at 5.7% versus an industry average of 12.99%. The Company also maintained its dynamic of rapid growth during the 6 months under review, materialized by gross portfolio growth of 12% over 6 months and 24% over the last 12 months. Interest income also increased by 12% compared to the corresponding period of the previous year.
The company’s Tier 1 capital reached 20.22% and Tier 2 capital reached 20.61%, well above the regulatory requirements of 7% and 11% respectively. CLC’s overall equity reached Rs. 23 billion over the period. The Company has a diversified funding base consisting of deposits, capital market products, foreign funding lines, bank lines of credit and a substantial level of equity. Reaffirming the strength and stability of CLC, ICRA Lanka Limited again rated the company SL (A), with a stable outlook in 2021.
CLC continued to expand its geographic presence during the year, opening 3 new branches in the first half of 2021/22, bringing the total number of branches to 70. The opening of 7 more is expected by the end some exercice. As one of Sri Lanka’s leading non-bank financial service providers, CLC offers a variety of financial services ranging from leasing, loans, factoring, flexible liquidity, personal loans, Islamic finance , gold loans, credit cards, term deposits, savings and more – demonstrating market leadership in most of these product segments.
Commenting on the impressive results of the first half of 2021/22, Krishan Thilakaratne, Executive Director / CEO of CLC said: Half of fiscal year 2021/22 against a backdrop of many challenges in the market. CLC has adopted a strategy of prudent management of the credit portfolio while closely monitoring overheads and NPLs, making CLC one of the strongest financial institutions in the country. Over the years, CLC’s strong financial performance has attracted numerous awards and accolades.