Even as it currently expands its microfinance business and suite of other products, the recent lockdown measures in August and September resulted in Lasco Financial Services Limited’s (LASF) revenue decreasing by 10 per cent to $553.91 million for the second quarter ending September 30, 2021.

With a significant number of patrons conducting transactions in person, the 12 business days lost to the lockdowns impacted the growth in the company’s money services business, which includes remittances and cambio operations. Though the company didn’t see any increased requests by customers to modify loans from the lockdown measures, Lasco Microfinance Limited’s revenue still remains below the prior year’s results as total loans remain down by 15 per cent to $1.40 billion. LASF recently launched its corner shop loan through this subsidiary in its aim to capture more of the underserved market.

As business activity picks up, LASF’s expenses grew by 6 per cent to $424.35 million, which resulted in its operating profit declining by 40 per cent to $129.56 million. Although finance costs and taxation were negligibly lower for the quarter, net profit came up 57 per cent lower at $58.61 million. Net profit for the six months remains up by 343 per cent at $133.59 million, which isn’t far from the $156.75 million earned in the 2021 financial year.

Total assets grew by 10 per cent to $4.37 billion with cash closing the period at $896.51 million. Total liabilities grew by 5 per cent to $2.53 billion, with the company refinancing its $1.2-billion bond for a bank loan from JMMB Bank. Shareholder’s equity closed the period at $1.84 billion as the company issued 9.67 million shares for $9.67 million.

— David Rose