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In one of the most historic mergers in Sri Lanka, LOLC Finance PLC, the country’s largest NBFI, merged with its sister company, Commercial Leasing & Finance PLC (CLC), to become the largest non-banking financial institution ( NBFI) in Sri Lanka. Lanka earlier this year. The market capitalization of the merged LOLC Finance PLC stands at over Rs. 180 billion, placing it among the top 3 companies of the Colombo Stock Exchange by market capitalization.

This strategic merger once again reflects the visionary vision of the LOLC Group, one of the most profitable globally diversified entities in Sri Lanka and the first to take strategic initiatives, giving it strong growth momentum. . Propelled forward by its powerful synergies, the combined entity generated a colossal pro forma profit before tax (PBT) from LKR. 25.6 billion and profit after tax (PAT) of LKR. 23.5 billion as of March 31, 2022, which places LOLC Finance PLC among the most value-creating institutions in the country.

The merged entity, LOLC Finance, bolsters investor confidence in the Sri Lankan economy at this critical juncture. As an inclusive financial services provider for micro, small and medium enterprises providing a boost to many economic sectors such as agriculture, manufacturing, transport, tourism and exports, LOLC Finance is now uniquely placed to enable existing and new businesses to grow and grow, and fostering financial inclusion to improve living standards and boost entrepreneurship, building on its philosophy of non-discrimination and empowerment of women entrepreneurs. An idea of ​​the financial power of the company is evidenced by the fact that the total assets of the NBFI sector amounted to LKR. 1,488 billion by the end of 2021, representing 21% of Sri Lanka’s financial system, LOLC Finance’s assets stand at LKR 311.6 billion, clearly dominating the NBFI sector with performance risk management indicators sound across all key metrics including capital, capital adequacy, business performance and thus maintaining the highest investor confidence. It should further be noted that the company maintains a very high level of integrity, transparency and client protection principles.

LOLC Finance promises a secured NBFI with a mammoth balance sheet size of LKR 311.60 billion with total advances of LKR 206.83 billion, making it resilient to economic shocks, thus encouraging more businesses to resort to lending due to its well capitalized nature and assets. supported products.

The strategic merger of two of the country’s largest NBFIs, both into the LOLC Group, signals the dynamic role the merged entity LOLC Finance will play in supporting the country’s economic recovery. This landmark merger is also in line with the Central Bank of Sri Lanka’s (CBSL) Non-Banking Financial Institutions Sector Consolidation Master Plan aimed at further stabilizing the financial sector. The entity is further strengthened with the acquisition by CLC of Sinhaputhra Finance PLC (SFL), still within the framework of the consolidation master plan.

The birth of the new entity, LOLC Finance, has many beneficial implications for stakeholders in general, as it will give rise to considerable efficiency gains thanks to the combined expertise, branch network and platforms. technologies, including iPay, LOLC Finance’s digital payment platform, which is winning accolades and quickly becoming the preferred payment platform and number one fin-tech lifestyle product. Additionally, as the most technologically advanced NBFI, LOLC Finance offers credit cards, online and mobile banking, and the full spectrum of lending and deposits, earning a reputation as the largest MSME financier and provider of Islamic finance, and the leading factoring and agricultural equipment financier in the industry.

LOLC Finance now controls a network of 210 branches, a growing customer base of over 600,000, a total loan portfolio of over LKR. 200 billion and an impressive deposit base of over LKR. 150 billion, which is nearly 20% of the entire industry. This amply reflects the trust and confidence placed by depositors in the financial stability and professional management of LOLC Finance.

The Company’s prudent financial discipline is evident in the fact that LOFC has managed to maintain its non-performing loan (NPL) ratio at 6.69% as of March 31, 2022, which is less than half the average for the sector, reflecting the health of the company’s portfolio. The merger also means that the combined technical expertise and goodwill in the industry of LOLC Finance is multiplied many times over.

With industry leadership comes recognition on local and international platforms. In 2021/22, LOLC Finance was awarded the 2022 Most Valuable Consumer Brand Award (Financial Services) by Brand Finance Sri Lanka; Most Innovative Financial Services Brand in Sri Lanka 2021 and Most Trusted Financial Services Brand in Sri Lanka 2021 at the ninth edition of the Global Brand Awards 2021; Financial Services Brand of the Year at the 2022 SLIM-Kantar Peoples Awards; and Gold Award for NBFI of the Year for Financial Inclusiveness, NBFI of the Year for Excellence in Customer Convenience, Financial Institution of the Year for Best Digital Payments Strategy, Best Mobile App for retail payments via Just Pay (banks and NBFI), Excellence in Interbank Digital Payments (NBFI) overall award and a merit award for the most popular digital payment product (banks and mobile payment app NBFI) during the 4th edition of the LankaPay Technnovation Awards by Lanka Clear.

One of LOLC Finance’s strengths will be how it leverages its unique business model and advanced technology platforms to drive business growth and profitability. The merger has also boosted the capital markets as both are listed entities and some of the top shares on the Colombo Stock Exchange (CSE).

As the largest NBFI in the country, LOLC Finance is uniquely positioned to drive economic growth by financing grassroots businesses to grow while helping the country’s trade and export communities seize growth opportunities. and diversification.