CLC delivers robust 1H performance

Thursday, 25 November 2021 00:00 - - {{hitsCtrl.values.hits}}

PBT of Rs. 2.4 b and PAT of Rs. 1.8 b
Total Asset Base of Rs. 85 b; Loan portfolio amounted to Rs. 73 b
NPL at 5.7% against industry average of 12.9%

Director/CEO Krishan Thilakaratne

Further consolidating its achievements from the previous year of navigating the pandemic prudently while delivering a stellar year-end performance, Commercial Leasing & Finance PLC (CLC) posted strong results for 1H 2021/22.

During the period, CLC recorded a Profit Before Tax (PBT) of Rs. 2.4 billion and a Profit After Tax (PAT) of Rs. 1.8 billion. This resounding performance can be attributed to exceptional portfolio management, with Non-Performing Loans (NPLs) maintained at 5.7% in contrast with an industry average of 12.99%. The company also sustained its rapid growth momentum during the six months under review, evidenced by a growth in the gross portfolio by 12% for six months and 24% for the last 12 months. Interest Income also rose by 12% over the corresponding period in the previous year.

The company’s Tier 1 Capital reached 20.22% and Tier 2 achieved 20.61%, well above regulatory requirements of 7% and 11% respectively. CLC’s overall equity rose to Rs. 23 billion during the period. The company possesses a diversified funding base consisting of deposits, capital market products, foreign funding lines, bank credit lines and a substantial level of equity. Reaffirming the strength and stability of CLC, ICRA Lanka Ltd. once again rated the company as SL (A), with a stable outlook in 2021.

CLC continued to expand its geographic footprint during the year, opening three new branches in 1H 2021/22, bringing the total branch network to 70. Another seven are scheduled to be opened by the financial year-end. As one of Sri Lanka’s leading non-banking financial service providers, CLC offers many financial services ranging from leasing, loans, factoring, flexi cash, personal loans, Islamic finance, gold loans, credit cards, fixed deposits, savings and more – demonstrating market leadership across most of these product segments.

Commenting on the impressive 1H 2021/22 results, CLC Executive Director/CEO Krishan Thilakaratne said: “The true mettle of an organisation can be seen in tough times and CLC has proved itself yet again by delivering a forceful financial performance in the first half of the 2021/22 financial year against a backdrop of many challenges in the market.

“CLC adopted a strategy of careful management of the credit portfolio while ensuring close monitoring of overheads and NPLs, making CLC one of the strongest financial institutions in the country.”