LOLC records impressive 52% income growth in 1H

LOLC, Sri Lanka's pioneering Leasing Company and a subsidiary of ORIX Corporation of Japan has recorded an impressive revenue growth of 60% and an income growth of 52% in the first half of the current financial year compared to the corresponding period last year. The revenue recorded for the period under review was Rs. 1.5 billion while income reached Rs. 1.3 billion.

Profits increased to Rs. 419 million in its first half year, a growth of 13% over the previous year, despite a negative operating environment. The company attributes this performance to the aggressive growth strategy adopted by LOLC, where executions reached Rs. 6.8 billion during the first six months compared to Rs. 4.5 billion in the previous year, a remarkable growth of 51%.

LOLC is gearing itself to be a fully-fledged Financial Solutions provider and has already expanded its service offerings and is well placed to cater to the financial needs across the business environment and particularly the SME sector.

The increase in interest rates directly affected the company's cost of borrowing, which was the main contributor to the significant increase in direct costs, which were 110% above the corresponding period last year. Direct costs, which increased from Rs. 299 million to Rs. 626 million in the first half of this year, included direct taxes paid by the company. The company maintained its operating expenses well within the budget, through effective expense management strategies while further investing into expanding distribution reach through new branches as well as the refurbishment of its Corporate Office in Rajagiriya.

Other income earned by the company contributed positively to the bottom line recording a 214% growth over last year, an increase of Rs. 88 million.