LOLC Finance concludes year with highest ever profits of Rs. 21.5 bn.with 39% yoy growth
LOLC Finance PLC, the largest non-banking financial institution in Sri Lanka has reported exceptional performance recording Rs. 21.5 billion profits for the fiscal year 2023/24 with 39% YoY growth, representing an ROE of 20%.
This outstanding performance underscores the company’s strategic excellence and robust market position, achieved through a series of strategic consolidations and a steadfast commitment to cost efficiency, digital transformation, and customer-centricity.
As at the end of the fiscal year, the Company reported a portfolio of Rs.250 billion and a deposit base of Rs. 206 billion along with a capital base of Rs. 122 billion, the largest in the NBFI sector.
Through these results, the company not only demonstrates its dominance in the non-banking financial industry but also its successful navigation through an evolving macroeconomic landscape and the company’s ability to adapt and thrive amid challenges. Over the past three years, LOLC Finance has successfully executed three significant mergers, solidifying its market leadership and expanding its operational footprint. These strategic consolidations have enhanced the company’s capabilities, diversified its product offerings, and increased its customer base.
By optimizing operational processes and leveraging economies of scale, the company has been focusing on lowering its cost base. This is reflected by the cost to income ratio of 40% and is expected to reduce further with the benefits of the merger being extracted.This focus on efficiency improvement has been complemented by a comprehensive digital transformation strategy. The company has invested heavily in cutting-edge technologies and digital solutions, streamlining operations, enhancing customer service, and improving overall business agility.
At the heart of LOLC Finance PLC success is its unwavering commitment to customer-centricity. The company has consistently prioritized understanding and meeting the evolving needs of its customers. Assuming its role as an Economic Enabler for most parts of the segments in the economy, LOLC Finance PLC offers a comprehensive lending portfolio, with an array of financial solutions.
Boasting over 230 branches across the island and a culturally diverse workforce, LOLC Finance prioritises personalized services to its wide-ranging customer base.The company has established support mechanisms to enhance the resilience of micro, small, and medium-sized enterprises (MSMEs). These mechanisms include training programs for micro-entrepreneurs, facilitating marketlinkages, debt restructuring, and providing moratoriums during challenging times.
With the goal of maximizing customer convenience and operational efficiency, the company invests in digital technologies that drive innovation. Omni channels will be further developed for customers to access financial services through multiple channels while enabling them to switch channels seamlessly.
Looking ahead, LOLC Finance PLC is poised to continue its growth trajectory by leveraging its strong market position, ongoing commitment to cost efficiency, and cutting-edge digital capabilities.
With a solid foundation and a clear vision for the future, LOLC Finance PLC is well-equipped to navigate the challenges and opportunities ahead, particularly in the context of Sri Lanka’s recovering economy.
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