CFSL facilitates small and medium company lease finances

CFSL,a specialised leasing company facilitates lease finance to small and medium sized companies.

CFSL, does not hold a significant market share in the leading industry, and relies mainly on repeat customers where most of the disbursements are facilitated to individual customers operating in the trade and transport sector.

CFSL operated through two outlets - the head office in Colombo and in Kandy. The company is focusing on opening two branches this year.

The increase in pre-tax return on assets to 3.9 percent in 2011 is driven mostly by interest income on commercial paper investment and Rs. 14.9 m of recoveries on non performing loans (14.5 percent and 10 percent) of total income and partly due to lower provisioning costs.

Interest income on lease, commercial loans and staff loans decreased to 80 percent of total interest income. (2010 it was 86 percent). The net interest margin which edged to 8.6 percent at the end of last year was mainly due to the reduction in the interest yield.