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 Bn and a Profit After Tax (PAT) of Rs. 1.8 Bn. 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 6 months under review, evidenced by a growth in the gross portfolio by 12% for 6 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 Bn 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 Limited 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 3 new branches in 1H 2021/22, bringing the total branch network to 70. Another 7 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, Krishan Thilakaratne, Executive Director/CEO of CLC said, “The true mettle of an organization 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.”
Over the years, CLC’s strong financial performance has attracted many awards and accolades. In the year 2021 as well, the LMD Brands Annual listed CLC in the Top 50 Brands, which highlighted the stability of the brand. CLC was also included amongst the Top 100 Listed Companies and the Top 100 Most Respected companies by LMD.