LOLC had bought 97 percent of CLC in mid-2008 and had delisted from the Colombo Stock Exchange after buying the rest.
Though there has been some integration of core operations the two firms operated as separate entities benefiting from strong brands and customer segments.
CLC is strategically important to LOLC as an important contributor to the group's profits which was 44 percent in the first 9-months of the 2010 financial year and in broadening of the LOLC group's customer base, Fitch said.
CLC's disbursements increased in the latter half of 2009 and the company registered a loan growth of 17 percent at the end of the 2010 financial year.
It was driven by the growth across CLC's entire lending portfolio except for leasing which contracted during the period.
Lease and hire purchase together accounted for 76 percent of total advances, and is mainly for individuals in the small and medium enterprise segment for the purchase of commercial vehicles.The balance was working capital loans secured by vehicle mortgages (9 percent of advances) and debt factoring (15 percent).
Fitch said loan quality continued to be managed well in the 2010 financial year, with nominal nonperforming loans (NPLs) decreasing by 30 percent from its peak in mid-2009, supported by closer monitoring and aggressive recovery processes.
Despite wider margins and lower provisioning costs, CLC's profitability had declined marginally due to higher operating costs.
CLC's operating costs to average assets increased to 5.6 percent in the 2010 financial year, driven by higher costs allocated by the LOLC head office for various staff and administration expenses.
It has 17 branches and 11 service centers and owns a 40 percent stake in an insurance broking company, Commercial Insurance Brokers, and a 50 percent stake in Diriya Investments Ltd, an equity investment company.