Sri Lanka’s LOLC March earnings down 74-pt
ECONOMYNEXT – Profits at Lanka Orix Leasing (LOLC) contracted 74 percent from a year earlier to 2.46 billion rupees in the March 2018 quarter on higher loan-loss provisioning and lower capital gains, interim financial results filed with the stock exchange showed.
LOLC reported group earnings of 5.18 rupees a share in the quarter. The stock closed at 115.50 rupees last Friday.
Earnings per share fell 43 percent from a year earlier to 9.72 rupees in the 12-months to end-March 2018.
Interest income grew 86 percent in the March quarter to 29.1 billion rupees, and interest expenses grew at a slower 60 percent to 15 billion rupees, with net interest income expanding 126 percent from a year earlier to 14.1 billion rupees.
Operating profit increased 142 percent to 6.9 billion rupees in the quarter, despite direct expenses growing 94 percent to 2.4 billion rupees, personnel costs growing 26 percent to 4.8 billion rupees, and loan loss provisioning increasing 78 percent to 4 billion rupees.
Share of profits of equity accounted investees fell 75 percent to 197 million rupees and capital gains fell 99 percent to 62 million rupees from 10.4 billion rupees a year earlier.
LOLC group’s deposit base grew 45 percent from a year earlier to 307.5 billion rupees as at end March 2018. Borrowings grew 16 percent to 332.1 billion rupees.
The group’s loan book expanded 34.5 percent to 493.2 billion rupees.
In segment results reported by LOLC, the financial services businesses of the group reported a four-fold growth in profits from a year earlier to 11.4 billion rupees in the March 2018 quarter.
The group’s manufacturing and trading segment grew 2,200 percent to 16.8 billion rupees and insurance grew 525 percent to 0.4 billion rupees.
Profit from plantations and hydropower was 4.6 billion rupee, compared to a 500 million rupee loss the previous year. The hotels segment saw losses expand 56% to 220 million rupees in the March 2018 quarter from a year earlier. (COLOMBO, 04 June, 2018)