LOLC Al-Falaah pays Rs. 3.5 bn profits to depositors for FY 2023/24
LOLC Al-Falaah, the largest Alternate Financial Services Provider in the Non-Bank Financial Institutions (NBFI) segment in Sri Lanka, announced its exceptional financial performance for the fiscal year 2023/24.
With a total asset base of over Rs. 31.5 billion and a client base of nearly 50,000 across 203 branches nationwide, LOLC Al-Falaah continues to lead the Islamic finance industry in Sri Lanka. LOLC Al-Falaah effectively managed its assets and liabilities while expanding its portfolio.
The company’s revenue earnings soared to Rs. 6.6 billion, marking a 35% increase from the previous year. Additionally, LOLC Al-Falaah achieved a remarkable 73% increase in profit before tax, reaching Rs. 1.3 billion.
They also kept its Non-Performing Loan (NPL) levels at a low 7.67%, much better than the industry average of over 10%, displaying how well the company manages risks and operations. The high demand for their Mudharabha and Wakalah savings products indicates strong trust from investors. In 2023/24, LOLC Al-Falaah paid out Rs. 3.5 billion in profits to depositors, showing its commitment to giving good returns even during tough economic times.
The company also had retained earnings of Rs. 6.7 billion by the end of the financial year. Positioned to capitalize on powerful synergies following the merger, LOLC Al-Falaah aims to offer a comprehensive range of alternate finance products with extensive reach across Sri Lanka. The company’s digitalization efforts have successfully integrated Wakalah Investments and Mudharabah accounts with iPay, LOLC Finance PLC’s lifestyle fintech app, in addition to real-time internet banking solutions and Visa-enabled international debit cards. In 2023/24, the company donated Rs. 16.95 million to charitable causes, including Rs. 10.94 million for medical aid, Rs. 3.20 million for education and Rs. 14.81 million for social upliftment, focusing on providing Ramadan packs during high inflation.
Al-Falaah has conducted educational programs to raise awareness and to promote early savings among Grade 5 students. Since 2009, LOLC Al-Falaah has donated Rs. 237.34 million to support the communities and remains committed to fostering positive impact.
“During 2023-24, LOLC Al-Falaah has not only achieved remarkable financial growth but has also cemented its position as a leader in the industry through community activations, awareness sessions and outstanding awards,” opined Shiraz Refai, Head of Alternate Financial Services Unit of LOLC Finance.
“Our vision for profitability is deeply intertwined with our commitment to product innovation and customer-centric solutions. The introduction of the Digital Savings and Investment System through the iPay app is a testament to our ongoing efforts to harness the power of digitalization.
The post LOLC Al-Falaah pays Rs. 3.5 bn profits to depositors for FY 2023/24 appeared first on DailyNews.