LOLC Group merged its micro credit company, LOLC Micro Credit Ltd (LOMC), with its finance company, LOLC Finance PLC (LOFC).
Earlier this year, the Group sought approval from the Central Bank of Sri Lanka (CBSL) to merge these two entities and on receiving the necessary approval, concluded the merger on March 28, leaving LOFC as the remaining entity.
This strategic merger propels LOFC to the forefront of the industry as the largest Non-Bank Financial Institution (NBFI) in the country with a total assets base of Rs. 212 billion and a lending book of Rs. 152 billion.
The joint profitability of the two entities considered as one as at December 2017 was Rs. 3.3 billion.(PBT)
The diversity in the merged entity with its product and service offering as well as the strong financial support of its parent company and the large number of funding partners, empowers LOFC to reach an industry leading level of stability.
The high yielding micro portfolio of LOMC aptly complements the SME book of LOFC while LOFC’s ability to raise public deposits enables LOMC’s clientele to access the savings and FD products with the company.
Furthermore, this strategic merger provides a successful model for CBSL’s financial services sector consolidation plan.
The company’s wide customer base is poised to enjoy many benefits as a result of the merger.
Indeed, the merged entity promises an innovative customer experience through traditional channels as well as through digital engagement in financial services with fin-tech solutions reaching grassroots level clientele.
Commenting on this formidable merger that has raised the profile of the financial services industry, Group Managing Director, Kapila Jayawardena, says, “We believe the joint synergies have optimised their individual strengths to create a truly influential industry-leader. This new merged entity, which is effectively the largest NBFI in the country, is poised to achieve many historic milestones going ahead.”
“Customers in the SME sector as well as the Micro sector can expect a superior experience with the merged entity as they will have access to total financial solutions under LOFC, thereby placing the company on a strong growth trajectory. This dynamic merger is aligned to our Group’s vision of making the LOLC Group one of the most profitable conglomerates in Sri Lanka.”
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