Business

LOLC at the helm of corporate sector due to its impressive performance

Published

5 years ago

2020/08/16

LOLC Group (LOLC), the premier blue chip conglomerate, concluded another financial year on a high note as per the results for the year ended March 31, 2020.

LOLC posted an impressive Rs.19.8 billion Profit after Tax (PAT) for the year in comparison to Rs.19.6 billion PAT in the last year, becoming the most profitable listed entity in Sri Lanka for two consecutive years. In a short span of time, LOLC has truly emerged as a “Sri Lankan global player” having operations in over 10 countries.

While the Group performance was affected by local externalities, such as the Easter Sunday attack, the subdued economic growth and the political instability in FY19/20 that resulted the company to record dips in the net interest income and hikes in impairment charges, LOLC has been able to enjoy its stellar performance largely based on the earnings stemming from its overseas financial operations and the gain on a bargain purchase of Rs. 5.4 billion from the acquisition of the largest sugar production plantation company in Africa. Moving forward, LOLC is well set to realise the financial synergies generated from the PRASAC divestment through realigning the capital position of the Group.

Established 40 years ago, LOLC has spearheaded the Small & Medium Enterprise (SME) lending and microfinance revolution in Sri Lanka and the region. Excelling on a national level, LOLC has now established itself as a leading microfinance institution in the countries which it operates.

With its financial strength and the perfected micro finance business model in the region, the Group is now well-positioned to expand its operations beyond Asia to the African continent where a substantial opportunity lies in serving a large Bottom of the Pyramid population. Overseas expansion has not only offered LOLC diversified revenue streams with increased financial stability, but also has added resilience with a well-spread risk profile.

LOLC already made its debut to Africa by acquiring a microfinance bank in Nigeria in October 2019 and by starting LOLC Finance Zambia as a green field project. In FY 2020/21, LOLC will focus on consolidating its existing businesses while pursuing promising investments in Africa and Asia for long-term value creation.

The Group announced the board’s decision to sell its 70% stake in PRASAC to the South Korean KB Kookmin Bank for a consideration of $603 million in January 2020. LOLC received the relevant regulatory approval in March 2020 and concluded the transaction on April 13, 2020. PRASAC claims $3.3 billion in assets, $2.7 billion in portfolio, $1.8 billion deposits and $133 million Profit before Tax (PBT) for the 12 months ending March 2020.

Despite the sale of PRASAC, LOLC still has a foothold in the fastest growing Southeast Asian country via LOLC Cambodia, the fourth largest Microfinance Institution (MFI) in terms of portfolio size. The company has recorded an impressive performance with a 57% YoY growth of its earnings to conclude the year.

The group owns 97% of LOLC Cambodia that has an asset base surpassing $1 billion, a gross loan portfolio of $857 million, a deposit base of $501 million and a recorded profit of $34.6 million. With its superior process efficiencies and the right product mix, the company now leads the industry in terms of profitability.

Venturing into Myanmar in 2013 as a greenfield operation, LOLC Myanmar Microfinance Company Limited has now become the third largest among the 176 MFIs in the country with an asset base of $109 million, a portfolio of $77.8 million, and a growing deposit book of $13.8 million. LOLC Myanmar has seen an exceptional performance in FY2019/20 with over 94% YoY growth in loan book, total assets and deposits.

In 2017, the Government of Pakistan and the Sultanate of Oman invited LOLC to take up the major shareholding of their joint venture – Pak Oman Microfinance Bank, in recognition of LOLC’s outstanding contribution to the microfinance community. The Group ventured into Indonesia in 2018, acquiring the controlling interest in PT Sarana Sumut Ventura (SSV), expanding its global footprint. SSV is now well-placed to capture the industry potential in a country that has a massive Micro, Small & Medium Enterprises (MSME) market and over 100 million Bottom of the Pyramid population.

Tapping into other neighbouring emerging markets, LOLC invested in the Philippines through LOLC ASKI Finance and LOLC Bank Philippines (a thrift bank) in 2019. These entities collectively account for $11.8 million loan portfolio. In the year under review, the Group made its first finance sector investment in the African region by acquiring a controlling stake of FinaTrust Microfinance Bank in Nigeria, the country with the largest population in Africa.

Today, with the financial sector representation in eight countries along with promising investments in Asia and Africa in the coming years, LOLC has successfully established itself as a strong global financial conglomerate. With this standing, the Group is poised to be a global financial catalyst with a multi-currency, multi-geographic microfinance and SME platform in the future.

In spite of the challenging and unexpected external shocks, LOLC Finance PLC (LOFC) continued to hold its market leadership position amongst the Non-Banking Financial Institutions (NBFIs) in the country with an asset base of Rs.192 billion, a portfolio of Rs.134 billion and deposits of Rs. 99 billion. The company posted Rs. 3.9 billion PAT in the year under review. LOFC as the leading impact lender, holds the largest pool of Development Finance Institutions (DFIs), guiding their respective development goals for Sri Lanka.

The capital and the wide array of technical assistance provided by these DFIs through LOFC have transformed the grass root levels of the economy. Continuing the Group’s legacy of expanding strategic international alliances, LOFC signed a loan agreement with Swedfund, the Swedish Government’s Development Finance Institution to promote financial inclusion and gender equality.

In a statement about the annual performance of the Group, Group Managing Director/CEO Kapila Jayawardena said, “2019/20 has been a difficult year due to externalities affecting most industries, but we are pleased with our strong performance this year, with a Group PAT of Rs. 19.8 billion which is largely contributed by our strategic foreign ventures. With this standing, we are proud to be the most profitable listed entity for the second consecutive year. With a timely global expansion strategy, well diversified revenue streams and a dynamic workforce in place, we will ambitiously look forward to stride ahead with consistent performance during these turbulent times.”

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Business

Ceylon Chamber partners with members and relief agencies to deliver Cyclone Ditwah relief

Published

2 hours ago

2025/12/12

Thilina Walpola

In response to the devastating impact of Cyclone Ditwah, The Ceylon Chamber of Commerce has been actively supporting national relief and recovery operations in collaboration with the Government of Sri Lanka, key partners, and its members.

As a co-chair of the Sri Lanka Preparedness Partnership (SLPP) alongside the Disaster Management Centre (DMC), the Ceylon Chamber together with Janathakshan, played a central role in coordinating emergency response efforts, ensuring rapid and efficient assistance to affected communities. From 28 November to 6 December 2025, the Chamber mobilised volunteers across the Chamber Secretariat, member companies MAS Capital Pvt. Ltd – Intimates Division, Aitken Spence PLC, and university student groups, contributing more than 190 hours of service and answering over 40,000 emergency assistance requests to support the DMC’s 24-hour Emergency Operations Center.

The Chamber also provided support to the DMC for the Rapid Disaster Needs Assessment (RDNA), assisting with data analysis of calls received and the development of the direct community needs component of the RDNA, which informed government planning and coordination of relief distribution.

With the generous support of its member companies, the Ceylon Chamber facilitated the collection and handing over of financial aid and essential relief items to affected areas. The Chamber is deeply appreciative of Aitken Spence PLC, BASF Lanka (Pvt) Ltd.. CDK Philip Hospital, Central Finance Company PLC, Cinnamon Hotels & Resorts, Devi Trading Company, Eastern Merchants PLC, Emar Pharma Pvt. Ltd., Finagle Lanka Pvt.Ltd., H Connect International Pvt. Ltd., Hemas Manufacturing (Pvt) Ltd., John Keells-Cinnamon Life, John Keells Holdings, John Keells Properties, Lakdhanavi, Lauke Shipping, Oxford College of Business, Perera & Sons, Shanthi Textile, Union Assurance PLC, Union Bank of Colombo PLC, Walkers Tours, Wealthtrust Securities Ltd., and a large number of private donors, both individuals and companies, for heeding the nation’s call, supporting communities and industries hardest hit by Cyclone Ditwah, and contributing to ongoing recovery and rebuilding efforts across the country.

Beyond immediate relief, the Chamber continues to support preparedness initiatives ahead of the North East Monsoon Season 2025, reinforcing resilience and readiness across the country.

“We are deeply grateful to our member companies and volunteers for stepping up in this critical time – demonstrating once again that the private sector has and will continue to play a strong and supportive role in ensuring stability and sustainability for Sri Lanka at all times’, said Krishan Balendra, Chairperson of the Ceylon Chamber.

Business

Fluctuating fortunes for bourse in the wake of selling pressure

Published

2 hours ago

2025/12/12

Thilina Walpola

The CSE kicked off yesterday on a bullish sentiment, but by the middle of the session it turned negative due to heavy selling pressure. Later, though, it returned to positive territory, market analysts said.

There was satisfactory buying pressure latterly, both in retail and institutional entities, following the return to normalcy of economic activities driven by international support for rebuilding the country.

Amid those developments both indices moved upwards. The All Share Price Index went up by 60.33 points while S and P SL20 was up by 11.67 points. Turnover stood at Rs 5.55 billion with nine crossings.

Top seven crossings were: Sunshine Holdings 13.6 million shares crossed to the tune of Rs 462 million and its shares traded at Rs 35, JKH 9.5 million shares crossed for Rs 198 million; its shares traded at Rs 21, Laugfs Gas (Non-Voting) 1.2 million shares crossed for Rs 73.2 million; its shares traded at Rs 61 Tokyo Cement (Non-Voting) 730,000 shares crossed tfor Rs 66.1 million; its shares traded at Rs 87, Commercial Bank 185,000 shares crossed for Rs 37 million and its shares sold at Rs 200, Access Engineering 300,000 shares crossed for Rs 23.1 million; its shares sold at Rs 77 and Laugfs Gas 300,000 shares crossed to the tune of Rs 22.4 million; its shares sold at Rs 73.90.

In the retail market top seven companies that mainly contributed to the turnover were; Colombo Dockyard Rs 485 million (two million shares traded), JKH Rs 468 million (22.4 million shares traded), Dialog Axiata Rs 245 million (8.4 million shares traded), Sunshine Holdings Rs 198 million (5.7 million shares traded), ACL Cables Rs 122 million (481,000 shares traded) and Lanka Credit Business and Finance Rs 108.5 million (11.4 million shares traded). During the day 171 million shares volumes changed hands in 34388 transactions.

It is said that manufacturing sector counters, especially JKH and Sunshine Holdings, led the market while the banking sector also fared reasonably well, especially Commercial Bank. The telecommunication sector, mainly Dialog Axiata, also performed well.

Meanwhile, Cargills Bank is looking to raise Rs 2.5 billion through a rights issue of shares at Rs 8.50 each to support lending activities.

It also will issue 294,200,000 ordinary voting shares at a ratio of 14 new ordinary shares for every 45 existing ordinary shares. The issue is expected to raise Rs 2,500,700,000 in capital, CSE sources said.

Yesterday, the rupee was quoted at Rs 308.95/309/05 to the US dollar in the spot market, weaker from Rs 308.80/90 the previous day, dealers said, while bond yields dropped significantly.

A bond maturing on 15.02.2028 was quoted at 9.05/15 percent, down from 9.15/20 percent.

A bond maturing on 15.09.2029 was quoted at 9.50/52 percent.

A bond maturing on 01.07.2030 was quoted at 9.55/65 percent.

A bond maturing on 15.12.2032 was quoted at 10.20/30 percent, down from 10.25/30 percent.

A bond maturing on 15.06.2035 closed at 10.63/70 percent.

By Hiran H Senewiratne

Business

HNB tops TAB Global Ranking as “Sri Lanka’s Strongest Bank”

Published

2 hours ago

2025/12/12

Thilina Walpola

HNB PLC, the leading private bank in Sri Lanka, has been awarded the title of Strongest Bank in Sri Lanka for 2025 by TAB Global. The recognition was confirmed following the release of the TAB Global World’s 1000 Largest and Strongest Banks Rankings, with the announcement made recently

HNB’s Managing Director / CEO, Damith Pallewatte, stated that the accolade underscores the bank’s unwavering commitment to sustained financial strength and strategic resilience. “This honour shows the resilience and clarity of purpose that guide our institution. Our teams advanced through demanding cycles with discipline and accountability. The recognition confirms the trust placed in us by customers, investors and partners and it reinforces the duty we carry as a leading private bank. We remain fully committed to safeguarding long-term strength while contributing to Sri Lanka’s economic advancement with integrity and resolve.”

HNB achieves a landmark distinction in the 2025 rankings, establishing itself as Sri Lanka’s strongest bank. The assessment highlights HNB’s balance sheet quality, prudent risk discipline and the bank’s consistent ability to maintain stability through varied economic conditions. The ranking places HNB alongside leading global financial institutions acknowledged for sustained strength, institutional reliability and capacity to absorb external shocks.

Foo Boon Ping, President and Managing Editor at TAB Global, stated: “HNB demonstrated strong fundamentals and consistent delivery across multiple stress indicators. The bank’s performance placed it ahead of its domestic peers and aligned it with institutions recognised for structural strength. The ranking reflects measurable outcomes drawn from transparent criteria.”