Commercial Leasing and Finance PLC (CLC) has concluded FY2019/20 on an impressive note, consistently performing well year-on-year despite the extremely challenging events that marked the financial year.
CLC recorded Profit After Tax of Rs. 1,547 million, reflecting an increase of 29 per cent from Rs. 1198 million in the previous year even as revenue declined marginally. Non-Performing Loans (NPLs) for the year stood at 7.05 per cent, whereas industry NPLs exceeded 11 per cent. 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 per cent asset-backed products that served to absorb any possible shocks, the company said in a media release.
Krishan Thilakaratne, Executive Director/CEO of CLC said, “The year 2019/20 was probably the most challenging in our lifetime, as first we were assailed by the Easter Sunday attacks in April 2019; and just as the economy was recovering by end of the year, there was an even bigger crisis in store - the COVID-19 outbreak. It was like a candle being burnt from both ends. 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.”
He further said that, “Despite the volatility in the sector during 2018 and 2019, CLC has remained steadfastly loyal to its customer base, ensuring our financial services remained accessible at all times. Our strategy of prudent management of the credit portfolio while keeping overheads within reasonable limits helped the company to post impressive financial results. CLC’s strong performance has instilled confidence amongst depositors, with its depositor base growing to Rs. 25 billion and accounting for 52 per cent of the total funding. The company’s other funding sources include DFI borrowings, bank funding, capital market products and a full range of liability products. CLC’s equity stands at Rs. 17 billion in Tier 1 capital which is well over the Central Bank’s capital adequacy requirements, making CLC one of the highest capitalised financial institutions in the country.”
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