The LOLC Group has concluded its best year ever with pre-tax profit (PBT) reaching Rs.24.4 billion, doubling its 2015/16 end March performance and taking a lead in the results flowing out of the stock market this week. As 2016/17 end-year financial results of Sri Lanka’s top conglomerates rolled in this week, LOLC’s performance has seen [...]

The Sunday Times Sri Lanka

Historic PBT of Rs. 24 bln from LOLC, ousts JKH from top earnings bracket

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The LOLC Group has concluded its best year ever with pre-tax profit (PBT) reaching Rs.24.4 billion, doubling its 2015/16 end March performance and taking a lead in the results flowing out of the stock market this week.

As 2016/17 end-year financial results of Sri Lanka’s top conglomerates rolled in this week, LOLC’s performance has seen it upstage corporate leader John Keells Holdings (JKH) which reported a PBT of Rs. 23 billion, up by 19 per cent from the previous year.

However JKH’s group revenue was higher at Rs.106.3 billion versus LOLC’s income of Rs. 92 billion. LOLC’s post tax (PAT) was Rs. 20.9 billion, up by 124 per cent from the previous year. The total assets of the group increased to Rs. 641 billion whereas JKH’S assets totalled  Rs. 277 billion.

“Despite external challenges, the LOLC group’s resilient financial sector, led by the key players, LOLC Finance PLC (LOFC), Commercial Leasing and Finance PLC (CLC), LOLC Micro Credit Ltd (LOMC) and BRAC Lanka Finance PLC (BRAC) delivered a consistent strong financial performance. The profit contribution from these companies together with the rapid penetration into microfinance in the Asian region positioned the group at a strong level of profitability. Of the group’s profit, 81 per cent was derived from financial services, while its strategic investments into the non-financial sectors, leisure, plantations, construction, healthcare, trading and manufacturing, complemented the growth. This diverse portfolio spread over a multitude of growth sectors has made LOLC one of the largest conglomerates in the country,” the company said in a media release.

The flagship finance company of the group LOFC, recorded a PBT of Rs. 2.2 billion, with an asset base of Rs. 123 billion, a deposit base of Rs. 81 billion and an advances portfolio of Rs. 91 billion, thus making LOFC one of the strongest and largest NBFIs in the country.

Seylan Bank, an associate company of the group, contributed with Rs. 1.4 billion in profit.

LOLC ventured into the Asian region with its globally acclaimed microfinance model, and the footprint now stands in Cambodia, Myanmar and Pakistan, with a few more strategic locations identified in the pipeline. LOLC Cambodia PLC, the 4th largest micro finance institution in Cambodia, made significant contribution to the group’s profit while LOLC Myanmar, the greenfield operation established in 2013, demonstrated remarkable growth, reaching profitable status in just four years since commencement of business.

LOLC’s leisure sector grows
LOLC said its leisure sector is promising with international strategic partners onboard, Sheraton partnering with Turtle Beach Kosgoda to be opened in 2017 while Club Méditerranée, France will take over the management in Riverina Beruwala, which once completed will be one of the largest resorts in the country.

This year marked the group’s first overseas leisure venture, with the North Malé Resort Development project in partnership with State-owned China Machinery Engineering Corporation (CMEC), where LOLC is pioneering the creation of three islands on lagoons in Maldives with one 5-star and two 4-star properties.

LOLC’s other projects in the Maldives are the Nasandhura Hotel and Apartment Complex in Male city with 135 room keys and 118 apartments, development of a 5-star resort in Bodufaru in Raa Atoll and a 4-star resort in Bodufinolhu in South Ari Atoll.

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