CLC pre-tax profit reaches Rs. 2.4 b in 1H 2021/22
Commercial Leasing and Finance PLC (CLC) has recorded a profit before tax (PBT) of Rs. 2.4 billion and a profit after tax (PAT) of Rs. 1.8 billion in 1H 2021/22, the company noted in a press release.
This performance can be attributed to 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 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% while 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 end of the financial year.
Commenting on the results, CLC Executive Director and 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.”