LASCO Financial Services Lifts Q1 Net Profit 12.4% as Finance Costs Ease

  • For the first quarter ended June 30, 2026 (Q1 2026), LASCO Financial Services Limited (LASF) reported net profit of $45.55Mn, up 12.4% from $40.52Mn in the corresponding period of 2025. The improvement came as lower finance costs and a reduced tax charge more than offset a decline in operating profit.
  • Total income rose 3.2% to $573.07Mn from $555.49Mn. Core income advanced 6.2% to $540.25Mn, supported by higher remittance transaction volumes and expanding digital financial services activity, including stronger contributions from the Group's e-commerce offering. Other income, however, fell 29.5% to $32.82Mn, tempering overall topline performance. Lending income was constrained by lower disbursement levels in the latter part of FY2025 and into the first quarter.
  • Operating Expenses (OPEX) increased 5.0% to $493.77Mn, which management characterised as broadly in line with inflation. Administrative and other expenses were essentially flat at $281.93Mn, while selling and promotion expenses climbed 12.3% to $211.84Mn. With OPEX outpacing revenues, operating profit declined 7.1% to $79.30Mn. However, a 31.4% fall in finance costs to $15.95Mn on scheduled debt repayment and a 17.5% dip in taxation to $17.80Mn offset the operating profit decline.
  • Looking ahead, management continues to invest in digital infrastructure to support remittance services and the LASCO Gold Visa Prepaid Card, while intensifying efforts to build a more differentiated presence in the microcredit market. However, LASF faces risks concentrated in the lending book and the cost line. Hurricane-affected customers are still being regularised, disbursement levels remain subdued, and selling and promotion spend is growing well ahead of income, leaving operating profit exposed should the finance cost and tax tailwinds fade.
  • LASF’s share price declined by 15.6% year-to-date to close at 1.52 on August 11th. At this price, the stock trades at a P/B of 0.79x, which is below the Junior Market Financial sector average of 1.36x.

(Sources: LASCO Financial Services Limited Unaudited Financial Statements & NCBCM Research)