LOLC records highest ever profits

LOLC releasing its first quarter results for FY20/21, today said it has recorded the highest ever profit-after tax (PAT) of Rs.37.2 billion compared with Rs.5.6 billion recorded for the corresponding quarter of the previous year. Profit attributed to the equity holders of the group rose 137 percent to Rs.13.9 billion.

The sale of LOLC Group’s Cambodian investment in PRASAC to South Korea’s Kookmin Bank, was concluded in April for a value of US$603 million. The Group received the first tranche of US$ 422 million, with the balance of US$ 181 being due in 2022.

The Group recorded a gain of Rs.43 billion arising from the sale.

LOLC made its maiden investment outside Sri Lanka, acquiring an 18 percent stake in PRASAC in 2007 and gradually increased its stake to 70 percent in 2017. With the concluded transaction, LOLC will continue to hold a 21 percent stake in PRASAC.

The top line of the group grew to Rs.32 billion, a 12 percent growth over last year.

The Group made conservative provisioning for bad and doubtful debts with a Rs.10 billion being set aside for this purpose.