LOLC Finance reports Rs.8.1bn PAT in 1H24

LOLC Finance PLC marked a strong first half of profitability and growth for the six months ended September 30, 2024.

The company achieved a profit after tax (PAT) of Rs.8.1 billion, a significant 46 percent increase, compared to Rs.5.6 billion reported during the same period in 2023.

The key financial highlights for the period reflect LOLC Finance’s commitment to sustainable growth. The net interest income rose by 15 percent, moving from Rs.18 billion to Rs.21 billion. Additionally, LOLC Finance’s asset base saw a 7 percent increase, growing from Rs.366 billion to Rs.393 billion as of September 30, 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 percent 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 percent, 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.

Commenting on the financial results, LOLC Finance CEO Krishan Thilakaratne stated, “Our recent accomplishments highlight the strength of our customercentric approach, especially within the SME and micro sectors that are vital to Sri Lanka’s economic landscape.

” LOLC Finance Chairman Conrad Dias added that 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.

“Looking to the future, we are committed to prioritising 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,” he said.