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| Sunday, 18 December 2005 |
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| News Business Features Editorial
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LOLC group posts Rs. 370 million net profit in 1H 2005/06 The LOLC group recorded a cumulative net profit of Rs. 370 million in the first half of the financial year 2005/2006 reflecting a 32% increase in net profits compared to the previous financial year. These results were supported by a 19% increase in net interest income and a well planned collection drive which enabled the reversal of provisions for loan losses previously made by the company purely on a prudential basis. The group profits also increased by 37% to reach Rs. 431 Million. A spokesman for the group said growth in business volumes achieved through LOLC's commitment to deliver a high level of customer satisfaction resulted in a 53% increase in operating profit compared to the 45% growth in operating profit recorded during the first half of the previous financial year. These results which were attained despite volatile market conditions confirm that LOLC is well positioned to achieve sustained growth in a highly competitive market environment. Two new branches were opened at Kegalle and Embilipitiya during the period under review and the branch network now comprises 15 branches. Return on Capital Employed increased to 28% and astute asset and liability management enabled LOLC achieve a 7% Return on Assets at the end of the first six months. Total assets of the company grew by 25% to reach Rs. 10.3 billion as at September 30, 2005. Shareholders funds amounted to Rs. 2.6 billion at the end of the second quarter compared to Rs. 2 billion in the previous year. The market capitalisation of the Group increased to 4.8 billion from Rs. 3.4 billion in the previous year. The 41% growth in shareholder wealth during this period demonstrates LOLC's ability to provide high returns to all its stakeholders. |
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