In one of the most historic mergers in Sri Lanka, LOLC Finance PLC, one of the largest Non-bank Financial Institutions (NBFI) merged with its sister company, Commercial Leasing & Finance PLC (CLC), earlier this year.
The market capitalisation of the merged LOLC Finance PLC stands at over Rs 180 billion, placing it among the top three companies on the Colombo Stock Exchange by market capitalisation, company sources stated.
This strategic amalgamation yet again reflects the far-thinking vision of the LOLC Group, one of the most profitable globally diversified entities in Sri Lanka and the first off the starting blocks in taking strategic initiatives, which gives it a strong growth momentum. Propelled ahead with its powerful synergies, the combined entity delivered a pro forma colossal Profit Before Tax (PBT) of LKR 25.6 billion and Profit After Tax (PAT) of LKR 23.5 billion as at 31st March 2022, which places LOLC Finance PLC among the highest value creating institutions in the country.
The merged entity, LOLC Finance, is boosting investor confidence in the Sri Lankan economy at this critical juncture. As an inclusive financial services provider to the micro, small and medium enterprises providing thrust to many economic sectors such as agriculture, manufacturing, transportation, tourism and exports, LOLC Finance is now ideally placed to empower existing and new businesses to upscale and expand, and drive financial inclusion to uplift living standards and boost entrepreneurism, building on its ethos of non-discrimination and its women entrepreneur empowerment. An idea of the company’s powerful financial standing is evidenced by the fact that while total assets of the NBFI sector stood at LKR 1,488 billion by end-2021, representing 21 per cent of Sri Lanka’s financial system, LOLC Finance’s assets stand at LKR 311.6 billion, clearly dominating the NBFI sector with healthy performance risk management indicators across every key parameter including capital, capital adequacy, business performance and thereby maintaining utmost investor confidence. It is further noteworthy that the company maintains a very high standard of integrity, transparency and customer protection principles.
LOLC Finance promises a secure NBFI with a mammoth balance sheet size of LKR 311.60 billion with total advances of LKR 206.83 billion which makes it resilient to economic shocks, thereby encouraging more businesses to avail of loans due to its well capitalised nature and its asset backed products.