Business
Commercial Leasing & Finance PLC (CLC) delivers exceptional nine-month interim financial results; on track to surpass profitability over 2019/20 by year-end
Commercial Leasing & Finance PLC (CLC) delivered a powerhouse financial performance despite the wider economic and industry volatility caused by the COVID-19 pandemic. CLC recorded excellent numbers for the first nine months of the financial year ending 31st December 2020, despite challenging market conditions faced by the Non-Banking Financial Institution (NBFI) industry. Profit Before Tax grew to Rs. 2.3 Bn as at 31st December 2020, over the first nine months of the financial year under review. CLC recorded Profit After Tax of Rs. 1, 922 Mn, reflecting an increase of 65% over the previous year. Cost of funds reduced by 23% while overheads increased by only 3%. The Company’s performance is a result of excellent management of its Non-Performing Loans (NPLs) and cost of funds, while sustaining revenues by maintaining its product mix optimally.
CLC’s low NPL ratio compared to the industry is a result of its well-secured asset base and superior credit quality. Maintaining low NPLs despite the adverse impact on the market during first and second waves of the pandemic is a testimony to strong customer relationships the Company has built.
Further, CLC’s total assets exceeded Rs. 72.2 Bn during the period under review, making it one of the largest NBFIs in the country. CLC’s portfolio is well-diversified into all sectors of the economy – spanning auto finance, agri finance, SME finance, microfinance, Islamic Finance, gold loans, and receivable finance through factoring.
Equally significant is the growth of its deposit base by 19% during the period under review which reflects public confidence in the Company’s financial stability. CLC’s capital base exceeded Rs. 21 Bn as at December 2020, recording a 19% increase, which is far above the regulatory requirement with a Tier One capital ratio of 20.95% against Central Bank of Sri Lanka’s mandatory level of 6.5% and with Tier Two capital at 20.13% as against the regulatory requirement of 10.5%.
Expanding further, CLC Executive Director/CEO Krishan Thilakaratne said, “Our excellent nine-month performance is a result of top notch credit quality maintained over the years. We are optimistic about ending the financial year with even stronger results. Looking ahead, we plan to further expand our branch network by 15 more branches in the next financial year in order to leverage the high equity and brand value enjoyed by CLC across the country.”
As a further testimonial to its robust financial performance, CLC was reaffirmed as SL (A) stable by ICRA Lanka Ltd., which reaffirms its stability for customers.
Commenting on the exceptional nine-month financial results, CLC Chairman Priyantha Fernando said, “CLC has recorded exceptional Profit Before Tax (PBT) and Profit After Tax (PAT) over the last 10 years – and in the same vein, we expect to close the 2020/21 year with a PBT between Rs. 3.2 Bn to 3.5 Bn, which is an impressive achievement under the dismal market conditions – as indicated by these sound nine-month results. The GDP has been on the decline since the Easter Sunday attacks in 2019, further exacerbated by the COVID-19 outbreak, but despite the economic slowdown CLC has displayed resilience by putting in place pillars critical for sustained growth.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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