LOLC Group records Rs 45B PAT for Nine Months
LOLC Holdings PLC, releasing its nine months results, showed a PAT of Rs 45 billion after adjusting for corporate tax on a PBT of Rs 48 billion. The Group showed a Rs 4 billion profit for the quarter, a healthy performance considering the COVID-19 pandemic situation negatively affecting the financial services and leisure sector directly and other sectors indirectly.
The Group’s Financial Services Sector contributed Rs 3.5 billion in profits and these results were achieved allowing a strong level of risk mitigating provisions amounting to Rs 23 billion (Rs 10.3 billion in 2019) for bad and doubtful debts being made, over and above the regulated levels. Conservative provisioning was made considering the potential risks arising from the pandemic and the dull economic environment across all countries in which the Group operates. Due to the current crisis situation, the livelihoods of all sectors have been badly affected and at the request of the regulators of each country, the Group’s Financial Services companies have extended moratoriums to affected customers.
The flagship Finance company of LOLC, LOLC Finance PLC (LOFC) recorded a PAT of Rs 4.2 billion compared with Rs 961 million achieved in the corresponding period last year.
Commercial Leasing and Finance PLC (CLC) recorded Rs 1.9 billion as PAT for the current nine months compared with Rs 1.2 billion made in the previous year. The profit of LOLC Development Finance PLC (LOLCDF) was Rs 216 million compared to a Rs 124 million recorded in the previous year.
LOLC’s foreign Financial Services entities contributed well to the profits of the Group, with LOLC Cambodia leading the way with a Rs 5.7 billion PAT, followed by LOLC Myanmar Micro Finance Ltd, the greenfield business operation of LOLC, making a profit contribution of Rs 554 million as PAT. The rest of the companies also made healthy progress, despite the global impact of COVID-19.
The three finance companies in Sri Lanka experienced a strong level of deposit inflows despite the all-time low interest rates. The deposit books grew, demonstrating the trust the depositors place in these companies, considering the Group’s financial stability and strength.
The global expansion strategy for the financial services sector remains a key focus, with plans being made for further investments in Africa and in Asia. LOLC currently operates in Sri Lanka, Cambodia, Myanmar, Indonesia, Philippines, Pakistan, Nigeria and Zambia in Financial services, Maldives and Sierra Leonne in Non-Financial Services businesses.
Despite the global economic downturn, LOLC Group has a strong pipeline of multilateral funding available to LOLC and its operating companies both locally and globally. This clearly demonstrates the confidence these institutions have placed in the LOLC Group, due its long unblemished track record and the potential for growth, even during this turbulent period.