Business

Lasco Finanical profits up 50%

BY KARENA BENNETT
Business reporter
bennettk@jamaicaobserver.com

Wednesday, July 18, 2018

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Lasco Financial Services Ltd (LFSL) has attributed the acquisition of new subsidiary CrediScotia for an increase of 50 per cent or $33.7 million in net profit for its first quarter ended June 30.

“Just above half of the increase in income was contributed by loans, while total expenses increased by 62 per cent, largely driven by additional operational expenses,” Managing Director Jacinth Hall-Tracey said in a statement adjoining company financials on the Jamaica Stock Exchange.

LSFL first-quarter transactions generated $526 million in revenues, $235.2 million or 75 per cent more than the corresponding period in 2017.

The company closed the quarter with net profit of $100.5 million. In February, LSFL bundled its loan business into a new subsidiary called Lasco Microfinance Ltd in a deal that was expected to triple its loan book to $1.8 million.

The restructure also resulted in a loan company with presence throughout thirteen branches islandwide.

The focus of the newly organised group will be allocated such that the parent company, LFSL, will concentrate on its core activities — cambio and remittance services in Jamaica; while Lasco Microfinance will focus on providing credit in pursuit of financial inclusion.

Lasco's second subsidiary, LFSL Barbados Ltd, which handled MoneyGram through agent Courts Unicomer Ltd, has ceased to offer its service.

“By mutual consent, Unicomer (Barbados) Ltd, Courts and LFSL ceased offering MoneyGram services in that market; the customers will continue to be served by MoneyGram through its other local agent,” Hall-Tracey told shareholders.

Hall-Tracey added that management expects that the newly reorganised company will be positioned to maximise on its opportunities in the market and is currently making adjustments to processes, technology and structure to drive its strategic objectives for the 2018/2019 financial year.

LFSL closed the quarter with total assets of $3.55 billion, a year over year increase of $2.07 billion or 130 per cent. Cash and short-term deposits, on the other hand, decreased by six per cent as a result of the growth in the loans portfolio and additions to capital expenditure.

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