Jacinth Hall Tracey, managing director of Lasco Financial Services Ltd (LFSL), indicates that increased remittance transfers and the expansion of its local remittance agent network drove revenue for the company during the first quarter ended June 30, 2016.

LFSL saw $260.6 million in revenue for the period, which represents growth of $69 million or 36 per cent relative to the corresponding quarter last year.

Earnings were more subdued, although rising to $57.73 million during the quarter from $54.15 million in 2015, due to added administrative and promotional expenses, the company indicated.

Income from core business lines for LFSL increased $62.1 million or 35.4 per cent, and other income increased by $6.8 million or 42 per cent more than the previous year.

But total expenses for the first quarter rose by 38 per cent to $190.7 million, which the company head attributed to a 51 per cent increase in administrative expenses and a 27.5 per cent increase in selling and promotion expenses, year over year.

In her report on the first quarter, Hall Tracy said the net increase in expenses reflected the expansion of business lines – all of which were implemented in the last two quarters of the previous financial year. Staff costs, software support and marketing programmes contributed to the higher cost of operations.

The managing director noted, however, that growth continues to be driven by marketing efforts in the diaspora, leading to more remittances.

She said the Cambio business also experienced growth in transactions, while the loans division continued to benefit from the expansion of the business loans unit.

LFSL now holds assets of more than $1.2 billion, reflecting growth of 21.4 per cent over the corresponding quarter of the previous year. Cash equivalents and short-term deposits grew to $488.53 million from $354.5 million in 2015.

Shareholders on record as at June 30, 2016 were paid an interim dividend of $0.035 per share on July 12, 2016 – a total of $43.4 million.