LOLC Finance concludes significant year with highest profits to-date

LOLC Finance PLC has reported exceptional performance recording Rs.21.5 billion profits for the fiscal year 2023/24 with 39 percent YoY growth, representing an ROE of 20 percent. 

As at the end of the fiscal year, the company reported a portfolio of Rs. 250 billion and a deposit base of Rs. 206 billion along with a capital base of Rs. 122 billion, the largest in the NBFI sector. 

Over the past three years, LOLC Finance has executed three significant mergers, solidifying its market leadership and expanding its operational footprint. 

These strategic consolidations have enhanced the company’s capabilities, diversified its product offerings, and increased its customer base. Each merger was meticulously planned and executed, ensuring seamless integration and the realisation of substantial operational synergies in the forthcoming years. 

A cornerstone of LOLC Finance’s strategy has been a relentless focus on cost efficiency. By optimising operational processes and leveraging economies of scale, the company has been focusing on lowering its cost base. This is reflected by the cost to income ratio of 40 percent and is expected to reduce further with the benefits of the merger being extracted.

This focus on efficiency improvement has been complemented by a comprehensive digital transformation strategy. The company has invested heavily in cutting-edge technologies and digital solutions, streamlining operations, enhancing customer service, and improving overall business agility. 

The digital initiatives have not only driven cost savings but also positioned the company at the forefront of technological innovation in the financial services sector.

LOLC Finance PLC offers comprehensive lending portfolio, with an array of financial solutions, including auto finance, speed drafts, housing loans, mortgage loans, personal loans, corporate loans, working capital solutions, gold loans, educational loans, and flexi interest loans, among others. This diverse portfolio caters to the specific needs of individuals and enterprises across the economic spectrum.

With over 230 branches across the island and a culturally diverse workforce, LOLC Finance stands prioritise personalized services to its wide-ranging customer base. Setting itself apart from other non-banking financial institutions (NBFIs), LOLC Finance offers doorstep services for clients, encompassing both service provision and post-credit disbursement support. The well-trained employee base of LOLC Finance contributes significantly to the organization’s exceptional service delivery.

Its commitment extends beyond financial offerings. The company has established support mechanisms to enhance the resilience of micro, small, and medium-sized enterprises (MSMEs). These mechanisms include training programmes for micro-entrepreneurs, facilitating market linkages, debt restructuring, and providing moratoriums during challenging times. The digitalisation roadmap of LOLC Finance adds a new dimension to its customer-centric approach. With the goal of maximizing customer convenience and operational efficiency, the company invests in digital technologies that drive innovation. Offering services such as iPay, Real Time mobile app, and internet banking, customers can access a wide array of financial services without the need for physical visits. Omni channels will be further developed for customers to access financial services through multiple channels while enabling them to switch channels seamlessly.