Sri Lanka LOLC group net up 26-pct in June
Aug 28, 2016 09:58 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's LOLC Group, which has interests in financial services and leisure, said profits rose 26.3 percent from a year earlier to Rs2.3 billion in the June 2016 quarter.
The group reported earnings of Rs4.92 for the quarter.
Interest income rose 44.7 percent to Rs11.8 billion and interest expenses rose at a much faster 75 percent to Rs6.68 billion amid a rise in interest rates in the country, but the group also grew net interest income 18 percent to Rs5.12 billion.
Other revenue rose 24 percent to Rs5.0 billion, cost of sales increased 44 percent to Rs3.1 billion and gross profits rose1.2 percent to Rs1.9 billion.
LOLC’s Group Managing Director Kapila Jayawardena, commenting on the group’s performance in 2015/16 and the first quarter of 2016/17, said, “LOLC’s outstanding performance in 2015/16 is mainly derived from the financial services sector, where all companies have recorded exceptional performances.
"The strong collections enabled the group to achieve a better NPL level and all the companies in this sector to perform exceptionally well," Group Managing Director Kapila Jayawardena said in a statement.
He said growth in the lending business was backed by domestic and foreign funding lines.
The firm said finance companies accounted for 82 percent of profits before tax of Rs3.2 billion.
The portfolio grew to Rs213 billion from Rs140 billion.
LOLC Finance PLC (LOLC Finance), Commercial Leasing and Finance PLC (CLC), the newly acquired BRAC Lanka Finance PLC (BRAC) and LOLC Micro Credit Limited (LOMC) brought 89 percent of group profit before tax, it said.
LOLC Cambodia recorded Rs402 million in profits and PRASAC Micro Finance Company in Cambodia, a 60 percent subsidiary, brought Rs505 million in profits. LOLC also has a unit in Myanmar.
LOLC Finance's portfolio was Rs89 billion by June, with deposits growing Rs7 billion to Rs67 billion.
LOLC Micro Credit grew its assets 54 percent to Rs49 billion by June, from a year earlier.
BRAC ended June with loans and advances of Rs7.8 billion, with profit before tax rising to Rs193 from Rs71 million.
Browns Hotels and Resorts (BHR), which operates The Eden Resort and Spa in Beruwala, The Paradise Resort & Spa in Dambulla, Dickwella Resort in the deep South and The Calm Resort & Spa in Pasikudah, is expected to make profits this year, the firm said amid a 'challenging environment'.
The Turtle Beach Resort in Kosgoda and Riverina Resort in Beruwala were under construction.
BHR has recently made investments in the Maldives, to build three hotels. (Colombo/Aug28/2016)