LB Finance ups 1Q PBT by 24% to Rs. 1.6b

Tuesday, 16 August 2016 00:15 - - {{hitsCtrl.values.hits}}

Leading financial giant LB Finance PLC continued its exceptional momentum from the last financial year, in to the first quarter of 2016/17.

The company reported a Profit Before Taxation of Rs. 1.6 billion compared to 1.3 billion reported for the corresponding quarter previous year. The company’s Profit After Tax (PAT) stood at Rs. 912 million compared to Rs. 776 million recorded for the first quarter in the previous year.

Amidst several challenges such as low liquidity, higher cost of funds, volatile margins and slowdown in demand for new vehicles posed by the external market forces, the company’s strong commitment to achieve a sustainable growth in all key business segments has attributed to the solid underlying performance.

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Key performance indicators were on the up with Net Interest Income rising to Rs. 2.33 billion, an increase of 13% over the previous year’s Rs. 2.07 billion for the corresponding period. Total Operating Income grew to Rs. 2.61 billion compared to 2.37 billion recorded for the previous first quarter, with a modest increase of 10%. Impairment charges displayed significant improvement with a reduction from Rs. 233 million to Rs. 22 million due to strong recoveries, continued improvement in asset quality and the decrease in loss rates. As a result Net Operating Income reported a growth of 22%.

“LB Finance just completed 45 years and concluded an exceptional financial year of industry leading performance. It is now the opportune moment to capitalize on our long history of financial traditions and incomparable experience to propel the company towards unchartered waters. Our greatest strength is the absolute vote of confidence of the Sri Lankan people on our company,” said Sumith Adhihetty, Managing Director of LB Finance.

The company was established in 1971 and through the years has built a strong reputation as one of Sri Lanka’s most trusted financial organisations. With a total deposit base of over Rs. 52 billion and branch network reaching to all nook and corners of the country, LB Finance remains one of the largest non-banking deposit mobilisers in the industry.

The company also offers a variety of other services including leasing, factoring, hire purchasing, micro finance, mortgage loans and gold loans. LB Finance is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.