LOLC Finance PLC has announced outstanding financial results for the six months ending 30th September 2024, marking a strong first half of profitability and growth. The company achieved a Profit After Tax (PAT) of Rs. 8.1 billion, a significant 46% increase compared to the Rs. 5.6 billion reported during the same period in 2023. This robust performance emphasises LOLC Finance’s strength and resilience within a dynamic financial landscape.
Key financial highlights for the period reflect LOLC Finance’s commitment to sustainable growth. Net Interest Income rose by 15%, moving from Rs. 18 billion to Rs. 21 billion. Additionally, LOLC Finance’s asset base saw a 7% increase, growing from Rs. 366 billion to Rs. 393 billion as of 30th September 2024. The company’s total equity also surged, standing at Rs. 130 billion compared to Rs. 106 billion in 2023, demonstrating robust shareholder value and capital strength. Furthermore, with more than 20% of the industry’s asset portfolio, liability portfolio, and equity under its control, LOLC Finance has solidified its position among the country’s financial powerhouses, standing par with leading banks.
The company’s impairment charges were notably reduced by 50%, reflecting LOLC Finance’s disciplined approach to managing risk and enhancing portfolio quality. The company’s customer-focused strategies have also driven an increase in the deposit base reaching 200 billion, reinforcing its standing as a trusted financial partner across Sri Lanka. With 212 branches nationwide, LOLC Finance remains committed to bridging financial gaps and providing Sri Lankans with flexible savings, deposit schemes, and secure Visa debit card access through an extensive ATM network.
Commenting on the strong financial results, the CEO of LOLC Finance, Mr. Krishan Thilakaratne, stated, “Our recent accomplishments highlight the strength of our customer-centric approach, especially within the SME and micro sectors that are vital to Sri Lanka’s economic landscape. By improving our customers’ quality of life, we not only promote individual growth but also make a meaningful contribution to the nation’s economic development. At LOLC Finance, we have positioned ourselves as the largest financier in microfinance and factoring while also leading the way in SME, agricultural, Islamic, and working capital financing. Our impressive financial performance is a testimony to our strategic vision and sound risk management practices, further reinforced by (SL) A positive rating from the Lanka Rating Agency (LRA).”
The Chairman of LOLC Finance, Mr. Conrad Dias, added, “As an institution, LOLC Finance PLC has successfully bridged the divide between the banking and non-banking financial sectors, positioning itself alongside the largest banks in the country. This achievement is further fuelled by our ambitious digital roadmap, which aims to empower the bottom-of-the-pyramid population by putting digital technology directly in their hands, enabling them to uplift their own livelihoods. The foundation of our success lies in our unique business model that emphasizes customer protection and empowerment. Looking to the future, we are committed to prioritizing our digital transformation initiatives, aiming to foster a paperless economy and enhance accessibility through AI-driven solutions, solidifying our status as a blue-chip stock on the Colombo Stock Exchange.”
As the trusted financial partner, LOLC Finance remains committed to upholding its reputation for excellence, backed by licensing from the Monetary Board of the Central Bank of Sri Lanka, which ensures compliance with stringent regulatory standards. As Sri Lanka’s largest Non-Banking Financial Institution (NBFI), LOLC Finance is strategically positioned for continued growth and expansion. Explore the rates and diverse services offered by visiting www.lolcfinance.com.