Wednesday, November 24, 2021

Commercial Leasing & Finance posts PBT of Rs. 2.4 bn, PAT of Rs. 1.8 bn in 1H

Krishan Thilakaratne Director/ CEO and Kapila Jayawardena Group Managing Director/CEO LOLC group

Commercial Leasing & Finance PLC (CLC) posted strong results for 1H 2021/22 recording a Profit Before Tax (PBT) of Rs. 2.4 Bn and a Profit After Tax (PAT) of Rs. 1.8 Bn. during the preriod.

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.

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.

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.”

Commercial Leasing & Finance is a part of the LOLC Group.

Over the years, CLC’s strong financial performance has attracted many awards and accolades.

 

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