LOLC results outstanding
Profits top Rs 7.1 billion in nine months:
LOLC has continued to show exceptional performance recording
outstanding pre-tax profits of Rs 7.1 billion for the nine months to
December. This is a 485 percent growth over last year, with the
financial services sector, trading sector and the other sectors
contributing exceptionally well. The financial services sector showed
excellent performance with pre-tax profits of Rs 5.5 billion, a growth
of 354 percent over last year.
Group Deputy Chairman
Managing Director and CEO Kapila Jayawardena
The rest of the group contributed Rs 1.6 billion to the bottom line.
With a contribution of taxes of Rs 1.1 billion, the Group recorded
post-tax profits of Rs 6 billion, a growth of 647 percent over last
LOLC Group Managing Director and CEO Kapila Jayawardena, said ‘Sri
Lanka is on the threshold of economic prosperity with new opportunities
beckoning from North and East of the country as well.
“LOLC has been able to break new ground in profit diversity with
vigorous implementation of initiatives taken in developing its Core
business, as well as embracing the quest for new opportunities. This
performance, which reflect a quantum leap when compared to the previous
year, was due to the implementation of the Group’s road map which
enabled us to capture opportunities well ahead of time’, he said.
The increase in total revenue kept its momentum in line with the
aggressive growth in the financial services sector and the trading
sector. The revenue grew by 172 percent over last year to reach an all
time high of Rs 26 billion for the nine months.
The revenue from the financial services sector saw a growth of 41
percent to reach Rs. 13 billion while the contribution from the rest of
the sectors was Rs 12.4 billion. The borrowing costs continued to come
down in line with the sliding interest rates with the Group raising
funds at attractive rates.
LOLC’s ability to source long-term funding from foreign multilateral
and bilateral agencies at attractive rates contributed well to the
reduction in borrowing costs. The total borrowing costs reached Rs 4.9
billion by December reflecting the lower interest margins demanded by
LOLC Group’s core business, the lending operations and its strategic
investments contributed well to the bottom line positioning the Group on
a strong footing to reap steady growth in profitability in the medium to
long term. The Group’s expansion strategies augurs well with the
economic growth forecasted in the near future.
The balance sheet grew along with the business growth of the Group,
with total assets crossing the Rs 100 billion mark reaching Rs 108
billion by December. This is almost a 100 percent growth over last year.
The corresponding liabilities grew by 60 percent represented by the
borrowings of the Group mainly coming from the financial services
cluster and the holding company. The total assets of the financial
services cluster reached Rs 68 billion, a growth of 20 percent over last
year. The corresponding liability grew by 20 percent. The advances grew
by 49 percent to reach Rs 49 billion; this is an indication of the
strong portfolio growth as a result of the growth in executions. The
newly set up branches in the North and the East contributed
significantly to this growth.