Commercial Credit net profit grows ten-fold in 1H, 2011

Catering to a more diversified market has enabled Commercial Credit, to increase its net profit for the six months ended September 31, 2011 to Rs. 265.5m. This is an increase of 1604 percent over the corresponding period in the previous year.

The gross income of the company has increased to Rs. 1.1b during the period under review, up from Rs. 423m a year ago. The Earnings Per Share for the current year increased to Rs. 2.44 from (the Rs. 7.28) the previous year.

The Company's core business has recorded impressive gains despite severe competition from commercial banks and other financial institutions in a low interest scenario. The growth is testament to the aggressive but strategic and effective business and market expansion activity.

The company's asset base has now reached Rs. 7.4b, a growth of 40 percent from the Asset base of Rs 5.3b during the corresponding period the previous year.

Commercial Credit has successfully attracted over 337,000 customers during the period under review, a clear sign of the confidence the public has in the organisation. This is further established by the Gross deposit increase to Rs. 5.1b from Rs. 3.8b in September 2010.

Exceptional results during the quarter include the 246 percent increase in Net Interest Income NII) from Rs. 204.7 m in September 2010 to Rs. 708m as at September 2011. The significant growth in NII was assisted by the 174 percent increase in Interest Income.

Despite the significant growth in the loan portfolio in all the sectors, Commercial Credit maintained a Non Performing Loans (NPL) ratio of 3.29 percent.