Sri Lanka LOLC June net flat
ECONOMYNEXT – Profits at listed Lanka Orix Leasing Company, or LOLC, grew 1 percent from a year earlier to 2.9 billion rupees in the June 2018 quarter with losses in hotels, manufacturing and plantations offsetting gains in financial services, interim accounts showed.
Earnings amounted to 6.43 rupees a share, accounts filed with the Colombo Stock Exchange showed.
The share closed unchanged at 86 rupee Wednesday.
Net interest income grew 28 percent to 12.5 billion rupees as interest income increased 21 percent to 28.4 billion rupees and interest expenses fell 16 percent to 15.8 billion rupees.
LOLC group’s loan book expanded 30 percent from a year earlier to 501 billion rupees at end June 2018.
Deposits grew a faster 37 percent to 324 billion rupees.
Total operating profit grew 10 percent to 18.8 billion rupees including revenue from other businesses of the group.
Personnel costs rose 18 percent to 5.2 billion rupees, other operating expenses grew 15 percent to 3.5 billion rupees and losses on financial assets revaluation deepened 21 percent to 1.7 billion rupees.
Other operating expenses grew 15 percent to 3.5 billion rupees.
Total assets of the LOLC group grew 20 percent to 832.3 billion rupees, with shareholder funds amounting to 73.4 billion rupees, up 17.2 percent from a year earlier.
At company level, LOLC reported a net income cost of 922 million rupees, up 55 percent from a year earlier, leading to a bottom line loss of 168 million rupees in the June 2018 quarter, compared to a 183 million rupee profit a year earlier.
The loan book surged to 8.2 billion rupees compared to 698 million rupees a year earlier.
Borrowings grew to 53 billion rupees from 43.6 billion rupees a year earlier.
Investment in subsidiary companies grew to 68 billion rupees at end June 2018, up from 63 billion rupees a year earlier.
The LOLC group’s financial services segment reported 20 percent growth in profits from a year earlier to 6.8 billion rupees in the June 2018 quarter.
Profits from insurance grew 500 percent to 102 million rupees.
Hotel losses deepened 55 percent to 570 million rupees and manufacturing reported a 239 million rupee loss compared to profits of 10 million rupees a year earlier.
Plantations reported losses of 56 million rupees compared to profits of 91 million rupees a year earlier. (COLOMBO, 16 Aug 2018)