LCB Finance announces interim dividend payout of 58%

Friday, 27 June 2025 00:54 - - {{hitsCtrl.values.hits}}

Chairman Dushmantha Thotawatte

CEO/ Executive Director K. G. Leelananda

Lanka Credit and Business Finance PLC has announced an interim Dividend pay-out of 58% for the financial year 2025/2026.

This company which was established in 2018 by turning around a defunct finance company and by repaying all depositors, has recorded a remarkable growth as a Licensed Finance Company in the industry.

The company achieved these results whilst conducting its business operations maintaining the required regulatory core capital, liquidity and capital adequacy ratios.

CEO/ Executive Director K. G. Leelananda, commenting on the declaration of the dividend stated that this achievement reflects the flexibility of their team and the strength of their development-focused business plans.

The company continued to uphold financial prudence, by maintaining a robust total Capital Adequacy Ratio (CAR) which was projected to be at 35.42% immediately after the payout of the proposed dividend. Adjusting for the proposed dividend, the company can continue to maintain prudential liquid asset ratios, Core Capital Requirements, and solvency.

The company has achieved this operational success, partly through the implementation of its business expansion strategy to increase the branch network to 21 branches.

CEO said that as of 31 March 2025, their total asset base reached Rs. 9.24 billion, the Loans and Lease book reached Rs. 7.8 million and the Deposit base increased to Rs. 4.6 billion exceeds 300,000.

Net Interest Income was Rs. 847 million while Equity Base stood at 3.0 billion.

The net Non-Performing Loans (NPL) ratio was 7% which shows robust credit management.

With a staff of 250, the company plans to achieve an asset base of Rs. 21 billion, a Deposit base of 14 billion, a Loan Book of Rs. 18 billion, and Core capital of Rs. 4 billion and reach a profitability level of Rs. 800 million during the next two years.

Leelananda stated that they are progressing to issue a Tier 2 Subordinated Listed Rated Unsecured Redeemable 5-Year High Yield Bond with a maximum of Rs. 1.5 billion (an Initial issue of Rs. 750,000,000/- with an option to issue up to Rs. 1.5 billion in the event of an oversubscription of the initial issue)

The minimum subscription requirement for a qualified investor applying for high yield bond will be 100 bonds (Rs. 10,000)

“Our main focus is catering to the financial requirements of the agricultural, self-employed, SMEs, and tourism and women empowerment sectors contributing to the economic growth of the country,” said Chairman Dushmantha Thotawatte.

“We also hope to increase our branch network by five to reach 26 branches this year and will open branches at Mathugama, Kurunegala, Jaffna, Vavuniya, and Chilaw.”

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