Commercial Credit ups FY15 net profit by 109% to Rs. 2.1 b

Monday, 29 June 2015 00:00 - - {{hitsCtrl.values.hits}}

lead-Rajiv-Casie-Chitty Commercial Credit’s Chief Operating Officer Rajiv Casie Chitty

Commercial Credit and Finance PLC, one of Sri Lanka’s leading finance companies, posted an impressive 108.7% growth in net profits for the financial year ended 31 March 2015 to reach Rs. 2.1 billion. This set a new milestone for the company, moving up from the Rs. 1 billion achieved for the first time in 2013/14.

“The results delivered by Commercial Credit for the financial year 2014/15 are extraordinary and will go down in the annals of the history of our Company as the year during which we first recorded Rs. 2.1 billion in profits. This is all the more creditable in view of the various challenges of differing magnitudes that the leasing and finance sectors experienced during this period,” says Commercial Credit’s Chief Operating Officer Rajiv Casie Chitty.

The company’s total customer deposits grew by well over 84.6% in the 2014/15 financial year, with 93.7% of the growth coming from the Fixed Deposits segment. Total assets grew from Rs. 31.6 billion as at the beginning of the financial year under review to Rs. 57.7 billion by year-end.

The interest income reached Rs. 11.1 billion for the year under review, recording an increase of 61.2 per cent over the previous financial year.

The total lending portfolio grew by 80%. The main drivers of this growth were lease and hire purchase, and also, micro finance loans which grew by 101.2 and 104.1 per cent respectively.

“Our continued efforts to provide customer centric products and a value-based service ethos have been the cornerstones of sustaining this growth momentum over consecutive years. We have been able to win the trust of the people. The growth of our deposit base and loan portfolio is testament to this confidence,” Casie Chitty added.

The company also expanded its service network substantially to reach all districts of the country. In the financial year 2014/15 the Company extended it service network from 75 to 119 locations. In selecting the locations for expansion, the Company not only considered current and future business potential, but also the needs of the population in such areas.

“With this extended service network, Commercial Credit is well positioned to further develop its business activities. The company is undertaking substantial strategic investments to further strengthen the IT infrastructure of the company. This is a fundamental requirement in view of the growing service network, increasing transaction volumes and growing capabilities and capacities demanded by business needs.”

Directors have recommended a final dividend of Rs. 1 for the year ended 31 March 2015. This is in addition to an interim dividend paid of 0.50 per share during the year.

In the year under review, the company acquired 96.9% of Trade Finance & Investments PLC (TFI), a registered finance company listed on the Colombo Stock Exchange, under the financial sector consolidation program initiated by the Central Bank of Sri Lanka.