Commercial Credit profits reach Rs 1 b

Commercial Credit and Finance PLC recorded a growth of 48% as its net profits for the financial year ended March 31, 2014 hit Rs.1 billion, an increase from Rs. 0.7 billion in 2012-13.

"The year under review will go down in the annals of history of our company as the year we first recorded Rs.1 billion in profits.

"This is a significant achievement considering the challenging year faced by the sector," said CEO of Commercial Credit, Roshan Egodage.

He said that the company's total assets also expanded by 73.1% to Rs. 31.6 billion and interest income by 74.5% to Rs. 6.9 billion.

"This growth coming on the back of good performances over the past several years, and the fact that it was mainly led by growth in the lending portfolio, is indeed creditworthy," he said.

Chairman, Commercial Credit, Cecil Perera said that the company had expanded its service network substantially to reach all districts of the country.

"With this extended service network, Commercial Credit was well positioned to further develop its business activities. The company extended it service network from 60 to 75 locations.

In selecting the locations for expansion, the company not only considered present and future business potential, but also the needs of the population in such areas," he said.

"Our deposit base grew by 73.7% indicating the trust and confidence the public has in the Commercial Credit brand and what it stands for," Perera said.

"The success of any organisation is founded on the trust and confidence of customers, and we believe that this is particularly so in the case of our company," he said.

During the first quarter of 2014 there were certain parameters related to the local economy which indicated a performance below expectations.

However, the authorities are confident that Sri Lanka's aspiring growth plans are on track in its thrust towards reaching per capita GDP of US $ 4,000 by 2016 and financial institutions such as Commercial Credit that are characterised by innovation, speedy growth and expansion would be presented with many opportunities to contribute significantly to this development.

"With our fast growing service network and large and loyal customer base, our company would be uniquely positioned to take advantage of the opportunities that would certainly arise," Perera said.

Confirming the company's excellent track record and potential, the leading frontier markets private equity investor, Creation Investments Capital Management LLC, Chicago, USA earlier this year agreed to invest Rs. 1.68 billion in Commercial Credit through its wholly owned subsidiary, Creation Investments Sri Lanka LLC.

This was the largest investment by an international private equity fund into a publicly-listed Sri Lankan licensed finance company and is a strong validation of the success of Commercial Credit.

"We believe that the association the company established through this transaction would spur a high level of interest in the financial services sector of Sri Lanka among international investors looking for investments in developing markets in the region," Perera said.