Commercial Credit net profit grows tenfold in 1H

Wednesday, 30 November 2011 00:55 - - {{hitsCtrl.values.hits}}

Catering to a more diversified market has enabled Commercial Credit to increase its net profit for the six months ended 31 September 2011 to Rs. 265.5 million.

This is an increase of 1,604% per cent over the corresponding period in the previous year.

The gross income of the company has increased to Rs. 1.1 billion during the period under review, up from Rs. 423 million 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. 7.4 billion, a growth of 40% from the Asset base of Rs 5.3 billion 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 general public has in the organisation. This is further established by the Gross deposit increase to Rs. 5.1 billion from Rs. 3.8 billion in September 2010.

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

Cementing its reputation as a premier financial institution benchmarking the highest international standards of service and operation, Commercial Credit was recently adjudged the ‘Best Finance Company in Asia’ at the international UDC Business Awards in Malaysia

The UDC has cited Commercial Credit’s outstanding accomplishments in business development as the defining factor in the company winning the Award. Competing among several prestigious companies in the Asian region, the company’s stellar track record of successes and record-breaking achievements over the past few years secured the company the illustrious Award.