No 106, Yatinuwara Vidiya, Kandy
081 2 000 000
http://www.cclk.lk/
Vision/Mission / Purpose
Vision -: To be the most liberated Company admired for its people, partnerships and performance
Mission -: To be a dynamic finance Company which develops and nurtures leaders at every level of the organization to serve society with passion
Purpose -: To build leaders who uplift the lives of people by simple acts of love
Business Description
Commercial Credit is a finance company licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.The Company was incorporated in 1982 and became public quoted in 2011. Commercial Credit has grown from strength to strength to become one of the most successful finance companies in the Country and was rated “SL” BBB/Stable Outlook by ICRA Lanka Ltd.
Commercial Credit today enjoys a reputation as one of Sri Lanka’s fastest growing finance companies. According to the guidelines on non-banking finance companies issued by Central Bank of Sri Lanka, Commercial Credit has been categorized as a large finance company based on the total asset of the company.
Commercial Credit believes that the critical ingredient for long term success is its corporate culture. A loving, nurturing culture creates individuals who readily reach out to the world reflecting a positive attitude and boundless energy in everything they do. The ultimate success is believed to lie in how successfully Commercial Credit enumerates its purpose of building leaders and inculcating its Shared Values – loving and caring, integrity and trust, think win win, and synergy and teamwork - among the greater Commercial Credit family.
Background
Commercial Credit and Finance PLC, one of Sri Lanka’s leading finance companies announced a growth of 114 % as its net profits for the financial year ended 31 March 2015 reached Rs.2.15billion. This marks an increase from Rs. 1.007 billion in 2013/14.
The Company’s total assets also expanded during the year under review, by 83.1% to reach Rs. 57.9 billion, and its interest income by 61.5% to reach Rs. 11.1 billion. As of 31st March 2015 the deposit base grew by 84.5% to reach Rs. 42.1 billion indicating the immense trust and confidence the public has in the Commercial Credit brand.
The extended branch and service network of Commercial Credit was well positioned to further develop its business activities. In the financial year 2014/15 the Company extended it service network from 76 to 119 locations. This has enabled Commercial Credit to bring its benchmark superior levels of service and expertise within easy reach of its steadily increasing customer base island wide.
Confirming the Company’s excellent track record and potential, the leading frontier markets private equity investor, Creation Investments Capital Management LLC, Chicago, USA last year invested Rs. 1.68 billion into 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.
Products/Services
Armed with a dynamic plan for the future, Commercial Credit aims to focus on bringing its unique brand of service excellence to people across Sri Lanka. Commercial Credit engages in providing a wide range of financial solutions including fixed deposits, leasing, hire purchase, pawning and gold loans, personal loans, education loans and microfinance. It also has a real estate division providing related services.
Markets
Sri Lankan economy witnessed a real economic growth rate of 7.4 per cent in 2014 compared to 7.2 per cent economic growth rate recorded in 2013. Favorable macroeconomic conditions and relaxed monetary policy contributed towards this growth. During 2014, Sri Lankan economy produced several improvements in macroeconomic indicators such as the maintenance of budget deficit under 6.0 per cent of GDP and the control of base rate inflation at 2.1 per cent per annum. Interest rates were lower than in 2013 while the Rupee depreciated against the US Dollar by 0.2 per cent at the end of 2014. The trade deficit increased due to a reduction in exports as well as an increase in imports. Sri Lankan economy is expected to perform well during the coming years and a GDP growth of 7.0 per cent is projected for 2015.
Industry
According to The Annual Report of CBSL the LFC and SLC sector (Licensed Finance Companies and Specialized Leasing Companies) was made up of 56 entities (48 LFCs and 8 SLCs) by end 2014. With the addition of 72 locations, the total number of locations reached 1,132 by 31 December 2014. The sector’s total asset base grew from Rs. 717.6 billion as at end 2013 to Rs. 853.3 billion, driven predominantly by the growth in the accommodation portfolio and liquid assets. It is noteworthy that the growth in accommodations for the sector slowed from 17.3 per cent in 2013 to 16.0 per cent in 2014. Non Performing Accommodations (NPA) were recorded at Rs. 44.3 billion which was an increase of 19.9 per cent over 2013, and NPAs relative to the total loans outstanding increased marginally to 6.9 per cent as at end 2014 from 6.7 per cent in 2013. Sector Net Interest Margin increased to 8.0 per cent in 2014 from 6.6 per cent in the preceding year.
Location
One of the key achievements of Commercial Credit during the financial year 2014/15 is the expansion of its service network. The Company increased the number of service locations to a total of 118 made up of 47 branches, 70 service centers and a pawning center. With this expanded service network, Commercial Credit is present in all districts of Sri Lanka. This network expansion is indeed remarkable when considering that the number of service points available to the Company in March 2012 was only 22.
Competitive Advantages
We are confident of consistently delivering solid performance in future years as we have laid the foundation for the same with a strong strategic platform. Our share price rose to Rs. 50.9 per share at the end of the year from Rs. 15.2 per share at the end of last year, clearly demonstrating the increased investor confidence in the performance of the Company and what is stands for.
The fact that these messages have a great resonance with the viewing public at large is a cause of great satisfaction and pride to us. The positive impact it has had on the Commercial Credit brand is reflected by indicators such as TOM (Top of the Mind Recall) and Unaided Brand Recall improving significantly to 23 per cent and 43 per cent respectively as seen by market research results made available to us.Our share of voice was at 33 per cent compared while our share of expenditure was 25 per cent.
For the third consecutive year Commercial Credit was ranked among Sri Lanka’s top 100 brands in the 2015 edition of the Brands Annual published by LMD, at 38 improving from 58 in 2014.
Financial Projection
What the estimated sales are and potential investment costs/returns. Confidential information would not want to be divulged, but something that shows the strength and growth potential to interested investors could be desirable.
Company Goals & Objectives
We want to leave a legacy of a Company that practices a highly ethical culture within and outside the company. CCF should be known of it’s high values whether locally or internationally, with strong social and sustainable impact, a bank that is concerned with our nations well being, our younger generation and the environment. We want to build a long lasting, sustainable relationships with everybody who comes into contact with us through win-win thinking. We also believe that learning is the single most powerful investment we can ever make in our life, so we are ready to learn from our international partners and also from every individual customer in order to set benchmarks for other financial institutions to follow.
Management
The Company is headed by the Chief Executive Officer, Mr. Roshan Egodage, who took over the reins in 2008. The Company has seen tremendous growth since then and will continue to grow at above average pace in the medium term. The Company also has a very experienced set of professionals who manage all aspects of business. The Company also has a very experienced board of directors who give a mix of professionalism and wealth of experience from local and international stand point that give strength to the management.
Employees
At the end of 2014/2015 financial year our staff strength grown to 3,334 which was 1,882 by end of 2013/2014.
Highlights
Interest income for the financial year was Rs. 11.1 billion and that was a commendable growth of 61.2 per cent compared to the last financial year. Net interest income reached Rs. 7.0 billion for the year which was a 73.4 per cent increase on an year-on-year basis. Our Net Interest Margin (NIM) was a robust 15.7 per cent. We continued to incur considerable expenses during the year with relation to our newly added service locations. Despite such increases in costs our net profit for the year reached Rs. 2.1 billion compared to Rs. 1.0 billion in the preceding year recording a commendable growth of 108.8 per cent.
During the 2014/15 financial year our Deposit base grew by 84.6 per cent to Rs. 42.2 billion, significantly above the industry growth of 22.7 per cent which we believe is a clear demonstration of the immense trust our customers have placed on us.
Our total assets increased to Rs. 57.7 billion from Rs. 31.6 billion from a year earlier; a growth of 82.4 per cent which was mainly due to growth in our lending portfolio to Rs. 46.6 billion. We added a total of 43 service locations to our service network during the year that led to a total of 118 locations being operational by the end of the year. Our balance sheet is strong with a shareholders’ equity of Rs. 5.9 billion at the end of the year, enabling us to comfortably embark on a journey of solid and sustainable growth in the coming years.
