Lasco Financial Services Limited is reporting a good combined three quarters, which have seen profits rising by as much as 71 per cent for the period ended December 31, 2021.

The Jamaican microlender saw net profits attributable to shareholders of J$263.64 million, up from J$153.91 million posted for the three quarters combined in 2020. The company incurred taxes for the period of J$134.52 million for the period under review, resulting in net profit for the quarter amounted to J$130.05 million relative to J$123.76 million booked in 2020.

Profit from operations rose 34 per cent to total J$521.57 million, relative to the J$390.46 million recorded last year. Profit from operations for the December quarter grew by 19 per cent to close at J$233.48 million, up from the 2020 posting of J$195.68 million.

During the combined three quarters Lasco Financial recorded trading income of J$1.75 billion, which represented a four per cent increase when compared to J$1.67 billion posted in 2020, while trading income for the December quarter amounted to J$668.38 million, up from J$527.18 million IN 2020.

Significant increase in other income

Other income increased significantly to J$88.36 million versus J$13.03 million in 2020. This resulted in overall income of J$1.84 billion, an expansion of nine per cent compared to J$1.69 billion for the corresponding period in 2020.

Operating expenses amounted to J$1.32 billion, one per cent more than the J$1.30 billion booked the year prior. Selling and promotional expenses rose marginally during the review period to close at J$490.48 million relative to the J$490.28 million reported in the prior period.

The management attributes this to “the rise in transactions and associated variable costs, the increased market presence to support new services and increased estimated credit loss taken as loan customers were impacted by September no movement days.”

Administrative expenses experienced a negligible growth of two per cent to $826.09 million compared to the J$807.09 million in 2020. Finance costs decreased to J$123.41 million (2020: J$140.96 million), resulting in a profit before tax of J$398.16 million, relative to the J$249.50 million booked for 2020.

For the quarter, pre-tax profit closed at J$203.42 million (2020: J$149.82 million). As at December 31, 2021, the company’s assets totalled J$4.52 billion (2020: J$3.98 billion), J$536.35 million or 13 per cent more than its value a year ago.

This increase was largely due to ‘Cash and Cash Equivalents’ which rose from J$570.39 million in 2020 to J$998.22 million in 2021. Also, ‘Short-term Deposit’ which increased to J$604.55 million (2020: J$415.43 million) contributed to the asset growth.