Commercial Leasing and Finance records Rs. 1.5 b PAT | Sunday Observer

Commercial Leasing and Finance records Rs. 1.5 b PAT

30 August, 2020

Commercial Leasing and Finance PLC (CLC) concluded FY2019/20 on an impressive note, consistently performing well year on year despite the extremely challenging events that marked the financial year.

CLC was reaffirmed as SL (A) stable by ICRA Lanka Limited, which guarantees trust, security and stability for its customers. During the year, CLC also became the first finance company in Sri Lanka to be granted a licence by the Central Bank of Sri Lanka for accepting micro savings through digital platforms.

CLC recorded Profit After Tax of Rs. 1,547 mn, an increase of 29% from Rs. 1198 Mn in the previous year even as revenue declined marginally by %. Cost of funds reduced by 8% and overheads by 12%.

Non-Performing Loans (NPLs) for the year stood at 7.05%, whereas industry NPLs exceeded 11%. One of the key reasons for the faster recovery of CLC after the Easter Sunday attacks in April 2019 was its portfolio, which consists of over 95% asset-backed products that served to absorb any possible shocks.Executive Director/CEO of CLC Krishan Thilakaratne said, “Despite the tough operating conditions in the industry, CLC succeeded in sustaining its financial performance on par with the previous year whilst enhancing Profit after Tax figures. This was no mean feat considering the rise in NPLs across the industry.”

“It will be a survival of the fittest – how companies manage internal and external stakeholder relationships, systems and processes, and leverage communication and branding, will determine how they come through this challenging period.  Companies will not only have to build strong balance sheets, but might also have to challenge and question their business models, cost and overhead structures, and conventional revenue streams and capital adequacy to face this unprecedented disruption,” he said.

The Chairman of CLC, Priyantha Fernando said, “What gives me pride is how CLC has sustained the previous year’s performance amidst a challenging 2019/20 by curtailing NPLs within reasonable levels and acquiring an ‘A’ Stable rating reaffirmed by ICRA Lanka.

“Many sectors in which our clients are engaged were affected due to the violence that ensued after the Easter Sunday bombings in April 2019. In most cases, the disruption of supply chains made it difficult for customers to recover their livelihoods. Nevertheless, our experience of handling tough situations came to the fore. Since the Company had the digital and physical infrastructure and trained staff to handle the crisis, we continued to provide uninterrupted services to clients, while ensuring the safety and health of staff and customers when the lockdown was lifted and 66 CLC branches opened their doors,” he said.

 CLC is a member of the LOLC Group.