Sri Lanka’s LOLC June net up 26-pct amid growing incomes

Aug 16, 2016 (LBO) – Sri Lanka’s LOLC group, which has interests in financial services, insurance, plantations, trading and leisure, said net profit for the June quarter rose 26 percent to 2.3 billion rupees.

The group reported basic earnings of 4.92 rupees per share for the quarter up from 3.89 from a year earlier, on a share price of 88 rupees.

The group reported interest income of 12 billion rupees for the quarter, up 45 percent, and interest expenses rose at a faster 75 percent to 6.7 billion rupees, resulting in net interest income growing at 18 percent to 5.1 billion rupees.

Interest income represents the income receivable for the period on all contracts, rentals on operating leases, income on factoring of client debtors, earned premium on insurance contracts and IT service fees.

Revenues rose 24 percent to 5.1 billion rupees and cost of sales rose at a faster 44 percent to 3.1 billion rupees making gross profits to rise at 1 percent to 1.9 billion rupees.

Revenue includes revenue from trading, manufacturing, plantation and other activities of the group.

Net impairment charges rose 20 percent to 675 million rupees while personnel costs rose 17 percent to 2.9 billion rupees.

Direct expenses excluding finance costs rose 70 percent to 1.1 billion rupees while other operating expenses fell 3 percent to 1.9 billion rupees.

In the segmental analysis, financial services sector profits for the quarter rose to 2.8 billion rupees, up from 2.3 billion rupees in the previous year.

Manufacturing and trading sector reported a loss of 130 million rupees while leisure and entertainment segment posted a loss of 263 million rupees.

The public shareholding at the end of June was 15.49 percent comprising of 3,050 shareholders.