Commercial Leasing and Finance records Rs. 2.9 b PBT in FY18

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Commercial Leasing and Finance PLC (CLC) posted a strong growth during the financial year of 2017/18, recording a Rs. 2.9 billion in profit before taxes; surging 32% in growth in comparison to the previous financial year, while the post-tax profits increased to Rs. 2.1 billion, which marked a 27% year-on-year growth.

Year 2017/18 financial year has been an excellent one for CLC as the profitability of the company was strengthened by strong growth in net interest income which recorded a steady growth of 33%, churning out Rs. 6.3 billion of net income, surpassing industry rivalry and competition.

Overall, the company recorded an ROE of 13.98 % and ROA of 3.84 %, and the asset base stands at Rs. 73.5 billion. The company has been able to register a continuous acceleration in the year-on-year profits since the year 2014, benefiting mostly from the improved net interest margins coupled with portfolio yields.

CLC’s deposit base expanded by Rs. 7.5 billion, enabling the companies deposit book to surpass

Rs. 23 billion for the first time in its 30-year history. Growing at an average of 47% in 2018, CLC’s total deposit base reached Rs. 23.4 billion as at the reporting date. Deposit growth was driven by the robust increase in term savings and fixed deposits. On the other hand, the leasing business grew significantly from the previous year. CLC grew their lending portfolio by Rs. 5.8 billion over the last year.

Heralding a legacy of 30 years, CLC’s strong customer base continued to grow this year as well by 120%, inclusive of the customer base acquired through microfinance. CLC also managed to accomplish an unwavering growth in all their key business units despite challenging macro-economic situations that prevailed within the country during the last financial year.

In terms of balance sheet performance, the company’s total assets stood at Rs. 73.5 billion at the end of the financial year. The company’s earnings per share (EPS) grew by 27%, which is a significant improvement from 2.08 % reported in 2016/17.

According to the Central Bank, the minimum capital requirement for a finance company to operate in business should be Rs. 1000 million. Settling beyond the regulatory requirement, Commercial Leasing and Finance PLC maintains equity of Rs. 16.5 billion which makes CLC one of the financial giants in terms of the highest stated equity capital within the industry.

CLC is rated “A, with stable outlook” by the ICRA Lanka (a ratings agency that is part of the Moody’s Investors Service group) in recognition of the year-on-year performance of Commercial Leasing & Finance PLC, which has validated its capacity to overcome the challenges of a challenging macroeconomic environment through solid governance and risk management initiatives.

Currently, all the branches of the CLC footprint are fully dedicated to serving customers with utmost professional care. As a futuristic company, CLC has never failed to evolve on a diversified range of products and services, including fixed deposits, savings, leasing, Islamic finance, factoring, microfinance, Flexi Cash and CLC online, with the availability of an island-wide ATM network.