LOLC concludes yet another strong financial year
View(s):LOLC Group, releasing its year end results for 31 March 2019, has recorded another strong year to its strongr performance over the last decade.
“With a robust Profit Before Tax (PBT) of Rs. 26.81 billion, compared to Rs. 24.66 billion recorded in 2018, LOLC continues to surpass its own accomplishments. The Group’s Profit After Tax (PAT), as at end March 2019, stood at Rs. 19.62 billion in comparison to Rs. 19.19 billion that was recorded in 2018,” the company said in a media statement.
Excelling on a national level, LOLC has undertaken a timely expansion to the region and has now established itself as a market leader in microfinance in the countries which it operates, like LOLC’s maiden overseas investment PRASAC for example, it said.
Invested in 2007, with mere 18 per cent, PRASAC grew leaps and bounds to become the largest microfinance institution in the dollarised Cambodian economy. Today, LOLC owns 70 per cent of PRASAC, a company that has US$2.6 billion in assets, $2.2 billion in portfolio, $1.5 billion in deposits and $103 million in PBT for the 12 months ending March 2019.
Reaffirming its regional expansion strategy, LOLC ventured into Myanmar in 2013. As a greenfield operation, LOLC Myanmar Microfinance Company Limited, has demonstrated a remarkable track record to become the third largest among the 176 microfinance institutions in Myanmar. LOLC Myanmar was also the first Sri Lankan organisation and the fourth international operator to commence operations in Myanmar with an asset base of $52.4 million, portfolio of $39.5 million and PBT of $2 million in just five years of business.
In 2017, the Government of Pakistan and the Sultanate of Oman, invited LOLC to take up the major shareholding of their joint venture – Pak Oman Microfinance Bank, in recognition of LOLC’s outstanding contribution to the microfinance community.
The group ventured into Indonesia in 2018, acquiring a controlling interest in PT Sarana Sumut Ventura (SSV).
Expanding its international footprint, LOLC invested in Philippines through LOLC ASKI Finance and LOLC Development Bank.
“Today, with the financial sector representation in Cambodia, Myanmar, Pakistan, Indonesia and Philippines, that accounts for a gross revenue of 41 per cent, LOLC has fully establish itself as a strong regional financial conglomerate,” the statement said.
The group penetrated its non-financial sector too in the international arena with its investments in Sierra Leone and the Maldives (resorts). Sunbird Bio-energy Sierra Leone Ltd is the latest addition and an integrated farm that generates power, sugar and bio ethanol. The company currently owns 23,500 hectares of agricultural estate which provides sugarcane, as well as a 380,000 Litres/Day Bio-Ethanol Plant and a 32 MW Biomass Power Plant.
In a statement on the annual performance of the Group, Kapila Jayawardena, Group Managing Director/CEO said, “As a well-positioned regional force with a timely global expansion strategy and a distributed revenue stream placed in short, medium and long term in both financial and non-financial sectors, the group is insulated from any externalities, at the same time poised to grow exponentially.”