Commercial Credit net profit grows tenfold
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 265.5 million.
This is an increase of 1604% 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 organization.
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%. |