LOLC Group records 1 b profits in 1 q of 2012/13
LOLC Group recorded Rs. 9.5Bn as Gross Revenue, Rs. 1.1Bn as Profit
before Tax (PBT) and a corresponding PAT of Rs. 721Mn in the first
quarter.
Performance of the Group's core business of financial services
remained strong despite the external pressures from the economy,
liquidity limitations and rising interest rates. The group's
conservative strategy adopted a few months back on portfolio growth
backed by strong collections reflected limited growth in the lending
book with strong NPL positions at each lending company. Portfolio
quality remained a top priority and all companies continued its efforts
to maintain NPLs at the healthy position as in the previous year.
The strong business model of the financial services sector drove
LOLC's main subsidiaries Lanka ORIX Finance Plc (LOFC), Commercial
Leasing and Finance Plc.(CLC) and LOLC Micro Credit Ltd.(LOMC) to record
steady growth in profits. The PBT contribution from each of these
companies was, LOFC - Rs. 459Mn, CLC - Rs. 458Mn and LOMC - RS. 287Mn.
The Company's PBT of Rs. 28Mn was lower compared with the last year's
first quarter of Rs.1.4Bn due to Rs. 1.2Bn profits realised by LOLC in
the previous year from thesale of a 10% stake of LOFC as a result of the
listing. The Company also recorded marked to market losses of Rs. 155Mn
during the first three months further reducing the profits. Kapila
Jayawardena, Group Managing Director of LOLC said that the results
demonstrates the strong growth and performance in the core business of
LOLC and with the multilateral funding pipeline already in place, the
Group expects to show strong performance in this financial year. |