LOLC gearing for micro-financing in Pakistan
The LOLC group will start a microsfinance operation in Pakistan in a bid to further expand regionally, officials said.
LOLC which saw its financial services sector companies lead the group to record strong profits in the first three months of 2016/17 with a profit before tax (PBT) of Rs. 3.2 billion when compared to the Rs. 2.7 billion recorded in the same period last year is exploring both options of either to buy or set up a micro- financing unit, they said.
"Micro- financing is large in Pakistan and we want to tap that market," an official told the Business Times. The financial services companies which account for 82 per cent of the group's PBT, showed a growth in terms of an increase in the lending portfolio consequent to the aggressive growth with the total asset base of the group reaching Rs. 380 billion.
LOLC Finance PLC (LOLC Finance), Commercial Leasing and Finance PLC (CLC) and the newly acquired BRAC Lanka Finance PLC (BRAC) together with LOLC Micro Credit Ltd (LOMC) recorded a strong financial performance in the year 2015/16 and continued the momentum during the first three months of the current year accounting for 89 per cent of the group's PBT, a company media release said adding that this was enhanced by the high yielding overseas investments made in LOLC Cambodia, PRASAC Micro Finance Company in Cambodia and LOLC Myanmar. "We want to explore potential in South Asia and will start with Pakistan,” the official said.
LOLC Finance, operates in the SME to upper micro markets and has a portfolio of Rs. 84 billion lending. It has one of the largest deposit bases amongst the finance companies in Sri Lanka amounting to Rs. 60 billion. LOLC Finance's portfolio grew to Rs. 89 billion by June this year, while deposits now stand at Rs. 67 billion. LOMC focusing on the micro finance segment saw its assets reach Rs. 49 billion by June 2016, recording a growth of 54 per cent in the year 2015/16.
LOLC's overseas financial services businesses, PRASAC Micro-Finance Company and LOLC Cambodia, a 60 per cent subsidiary of LOLC, has contributed Rs. 402 million and Rs. 505 million, respectively as profits during the three months up to June this year. The leisure business of the group led by Browns Hotels and Resorts (BHR) comprises Eden Resort and Spa in Beruwala, Paradise Resort & Spa in Dambulla, Dickwella Resort in the deep South and Calm Resort & Spa in Pasikudah, which are in operation while two hotel properties under construction, Turtle Beach Resort in Kosgoda and Riverina Resort in Beruwala are progressing as planned. BHR has recently made investments in the Maldives, to build three hotel properties and are expected to yield strong returns, given the opportunities seen there, especially in the high end tourism sector.
LOLC Finance, operates in the SME to upper micro markets and has a portfolio of Rs. 84 billion lending. It has one of the largest deposit bases amongst the finance companies in Sri Lanka amounting to Rs. 60 billion.