brand logo

LOLC records after-tax profit of Rs. 23.5 bn 

31 May 2022

The combined entity of LOLC Finance PLC and Commercial Leasing & Finance PLC (CLC) has recorded a Profit Before Tax (PBT) of Rs. 25.6 billion and a Profit After Tax (PAT) of Rs. 23.5 billion as of 31 March 2022, the company noted in a statement yesterday (30).  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. Total assets of the non-banking financial institution (NBFI) sector stood at Rs. 1,488 billion by end-2021, representing 21% of Sri Lanka’s financial system, with LOLC Finance’s assets at Rs. 311.6 billion. LOLC Finance stated its balance sheet totalled Rs. 311.60 billion, with total advances of Rs. 206.83 billion. The amalgamation of two of the largest NBFIs in the country, both within the LOLC Group, conforms to the Central Bank of Sri Lanka (CBSL)’s master plan for the consolidation of the NBFI sector to further stabilise the financial sector. The entity is further strengthened with CLC’s takeover of Sinhaputhra Finance PLC (SFL), once again under the consolidation master plan.   The birth of the new entity, LOLC Finance, has many beneficial implications for stakeholders in general, the company stated, as it will give rise to massive efficiencies due to the combined expertise, branch network, and technology platforms including iPay, LOLC Finance’s digital payment platform. In addition, LOLC Finance offers credit cards, online and mobile banking services, and the entire spectrum of lending and deposits, earning a reputation for being the largest MSME financier and provider of Islamic finance, and the leading factoring and agricultural equipment financier in the industry, according to the company. LOLC Finance now commands a network of 210 branches, a burgeoning customer base of over 600,000, total lending portfolio of over Rs. 200 billion, and a deposit base of over Rs. 150 billion, which accounts for nearly 20% of the entire industry.  LOLC also successfully maintained its Non-Performing Loan (NPL) ratio at 6.69% as at 31 March 2022, which is less than half of the industry average, thus reflecting the healthy portfolio of the company. The merger also implies that the combined technical expertise and goodwill in the industry of LOLC Finance is multiplied many times over. 


More News..