LASCO Financial Services’ effort to return its microfinance business to profit is being complicated by rising arrears, with almost one-third of the company’s loan portfolio past due at the end of March.

The company’s audited accounts show $453.8 million of its $1.43-billion gross loan book was at least one month overdue.

A year earlier, $370 million of a smaller $1.24-billion portfolio was past due. That means arrears grew by 22.6 per cent during the year, compared with 14.7 per cent growth in the overall loan book.