Commercial Leasing & Finance increases PAT by 29%

Chairman – Priyantha Fernando and Executive Director/CEO Krishan Thilakaratne

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. As a further testimonial to its robust financial performance, 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 1st 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, reflecting 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.

Explaining further, 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.”