LOLC posts Rs 3.2 bn profit in first quarter | Daily News

LOLC posts Rs 3.2 bn profit in first quarter

 Kapila Jayawardena

LOLC’s dominant financial services sector companies, led the Group to record strong profits in the first three months of 2016/17, a PBT of Rs. 3.2 bn when compared to Rs. 2.7 bn recorded in the same period last year.

The current year’s performance, strengthened by the outstanding performance of the Group in 2015/16 of Rs. 11.9 bn of PBT, is a 45% growth over the last year. The financial services companies which account for 82% of the Group’s PBT, showed a remarkable growth in terms of an increase in the lending portfolio consequent to the aggressive growth in their lending books.

As a result, the total Asset base of the Group reached Rs. 380 bn.The contribution to the high growth was achieved, resulting a portfolio growth of 52% to Rs. 213 bn from Rs.140 bn.

LOLC’s Group Managing Director Kapila Jayawardena said LOLC’s outstanding performance in 2015/16 is mainly derived from the financial services sector, where all companies have recorded exceptional performances. “The robust growth in the lending business, supported by the strong funding line, from both local and foreign sources at attractive terms and conditions, improved the income generating capacity of the sector. The strong collections enabled the Group to achieve a better NPL level and enabled all the companies in this sector to perform exceptionally well,”he said.

The leisure business of the Group led by Browns Hotels and Resorts (BHR), The Eden Resort and Spa in Beruwala, The Paradise Resort and Spa in Dambulla, Dickwella Resort and The Calm Resort and Spa in Pasikudah are generating moderate results despite the challenging environment in which they operate.

However, in comparison to the previous year higher profits are expected in 2016/17. The two hotel properties under construction, The Turtle Beach Resort in Kosgoda and Riverina Resort in Beruwala are progressing as planned.

LOLC, one of the largest conglomerates in Sri Lanka, its core business being financial services, comprises of three finance companies and one leasing company falling under the purview of the Central Bank of Sri Lanka.

The flagship finance company LOLC Finance PLC (LOLC Finance), Commercial Leasing and Finance PLC (CLC) and the newly acquired BRAC Lanka Finance PLC (BRAC) together with LOLC Micro Credit Limited (LOMC) recorded a strong financial performance in the year 2015/16 and continued the momentum during the first three months of the current year accounting for 89% of the Group’s PBT.

The strong performance was enhanced by the high yielding overseas investments made in LOLC Cambodia, PRASAC Micro Finance Company in Cambodia and LOLC Myanmar.

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