Daily News Online
   

Saturday, 18 February 2012

Home

 | SHARE MARKET  | EXCHANGE RATE  | TRADING  | OTHER PUBLICATIONS   | ARCHIVES | 

dailynews
 ONLINE


OTHER PUBLICATIONS


OTHER LINKS

Marriage Proposals
Classified
Government Gazette

LOLC PBT Rs. 9.3 billion

The LOLC Group continues to record steady growth in profitability, with its core business in the financial services sector maintaining its progressive growth in profits. The Group recorded Rs. 9.3 billion PBT for the nine months ended December which is an excellent growth of 30% compared with the previous year. The resultant PAT recorded a 31% growth over the last year at Rs. 7.9 billion.


CEO LOLC
Kapila Jayawardena

Deputy Chairman
Ishara Nanayakkara

The financial services sector strengthened its position and remained the main contributor to operating profits, and this had a positive impact on the Group's performance despite lower other income recorded for the period due to the prevailing equity market conditions.

Attractive interest rates commanded by the Group for its lending portfolio together with effective portfolio management steered the companies to improve their income earned from the financial services business by 49% to Rs. 13 billion for the nine months.

Strong collections by the marketing and recoveries teams strengthened the Group's collections ratios which are the best in the industry and this, significantly improved the quality of the loan portfolio.

The corresponding income for the same period in 2010 was Rs. 8.8 billion.

The income growth corresponds with the focused business strategies of Lanka ORIX Finance PLC (LOFC), LOLC Micro Credit Ltd (LOMC) and Commercial Leasing and Finance Ltd (CLC), which is to strengthen its presence in the North and East and to support financing activities of the agriculture centric client segment.

The Islamic business of the Group, 'Al Falaah' made progress during the reporting period with significant growth in the portfolio.

The borrowing costs grew by 26% corresponding with the higher quantum of borrowing.

The additional borrowing came from several multilateral and bilateral foreign funding partners who use the LOLC Group as their catalysts to realize developmental roles. These funding institutions also provide technical services assistance and global best practice knowledge transfer.

However, the cost of funding for the Group remained competitive relative to the interest cost volatility.

LOFC's deposit base grew by 62% compared with the previous year to reach Rs. 23 billion.

Subsequent to the approval received from the Central Bank, CLC converted itself to a Registered Finance Company and commenced its savings and fixed deposits operations.

The newly setup LOLC Insurance Co. Ltd., as a composite insurer offers both General and Life products to LOLC Group customers and other customers. LOLC Insurance is well aligned to deliver a distinctive value proposition to its customers through the use of the Group's extensive branch network, which puts the company on a very strong position compared with the competitors.

LOLC's expanded into the leisure sector two years ago, with the acquisition of four hotels in the golden mile on the southern coast was further strengthened by the new addition of Dickwella Resort Ltd., which is a 77 roomed resort hotel with a stunning location deep south of the island. The Group now holds 623 plus keys making LOLC Leisure one of the largest leisure operators in the country.

Commenting on the outstanding performance of the Group, Group Managing Director and CEO of LOLC Kapila Jayawardena said: "The future trends are promising where we will continue to maintain sustainable business growth for the long term.

We expect to see similar results in the fourth quarter where we would see the Group's diversified portfolio perform increasingly in tandem with the Group's core business, financial services."

EMAIL |   PRINTABLE VIEW | FEEDBACK

VAYU Mobile Phones and Accessories Online Store
Kapruka Online Shopping
Executive Residencies - Colombo - Sri Lanka
www.srilanka.idp.com
Telecommunications Regulatory Commission of Sri Lanka (TRCSL)
www.news.lk
www.defence.lk
Donate Now | defence.lk
www.apiwenuwenapi.co.uk
LANKAPUVATH - National News Agency of Sri Lanka
www.army.lk

| News | Editorial | Business | Features | Political | Security | Sport | World | Letters | Obituaries |

Produced by Lake House Copyright 2012 The Associated Newspapers of Ceylon Ltd.

Comments and suggestions to : Web Editor