LB Finance PLC, the undisputed leader in the non-banking sector, recorded a whopping Rs. 9.8 billion Operating Profit before Tax on Financial Services for the year ending March, showing a substantial 25% increase from last year.
The company has grown from strength to strength in the past few years, triumphing against issues in the industry and turning around adverse situations to the company’s advantage.
Leveraging on the customers’ loyalty, the company surpassed the Rs. 5 billion mark for the first time in its history by recording a profit after tax of Rs. 5.1 billion showing a 18.9% growth over the previous year’s mark of Rs. 4.3 billion.
Profit before taxes for the year under review was Rs. 7.7 billion which was another remarkable 19.5% increase from Rs. 6.5 billion in the year before, given the unstable political condition of the country in the latter part of the year. The company has solidified its position in the hearts and minds of its customers, being named the People’s Financial Service Provider for the year 2018-19.
The net interest income of LB Finance for the year ended 31 March was recorded as Rs. 14.4 billion. This is a significant 21.2% increase from Rs. 11.9 billion in the year before, standing testament to the company’s success. The recorded income for the same period was Rs. 29.3 billion.
This is up 16.9% from the same period in the previous year, which was at 25.0 billion. Highlighting the public trust in the company as well as its popularity with the public, LBF surpassed the impressive Rs. 80 billion mark in their deposit base recording at Rs. 83.2 billion from Rs. 73 billion in the year before.
In its 48-year history, LBF has made – and continues to make – great strides in the industry, and has proven its mettle, standing strong and stable in times of financial and political stress, which is apparent in the numbers it has recorded in the year.
Total assets of LBF increased to Rs. 136.4 billion from Rs. 120.8 billion in the year preceding. The net asset value per share stands at Rs. 133.03 up from Rs. 110.81 in the year before. A lower NPL ratio can be observed when compared with market rates where LBF maintained its NPL rate at 2.69% while the industry rate was 7.7%.
Commenting on the performance, LB Finance Managing Director Sumith Adhihetty said: “A few issues within the country and the industry had some impact on the performance of the company. These include the political instability in November 2018, lowered investor confidence, policy changes affecting duties and taxes, and the increasing volatility in foreign exchange.
“However, LB Finance has managed to triumph through all these issues, with the ratio of FD renewals speaking of the trust the customer continues to have in the institution. LB Finance has an A- (lka) rating from Fitch Ratings Lanka Ltd. with a stable outlook. This rating is testament to the low default risk and strong capacity for repayment of commitments that LB Finance has.”
Backed by a strong financial tradition of over 48 years coupled with our local experience, LBF offers a portfolio of financial solutions trusted widely by corporates, SMEs and individuals alike. These offerings are delivered to the market through an islandwide branch network. LBF has strategically expanded its operations beyond the shores of Sri Lanka to Myanmar.
The company has set up four branches in Bago region aimed at bringing prosperity to the people of that country as well. Further, LBF successfully launched ORACLE Fusion finance module and established a Digital Financial services unit this year.
Among its other achievements, the company was awarded ‘Merit’ in the Sri Lanka Corporate Health and Productivity Awards in recognition of its health, wellbeing and employee development practices and further strengthening its reputation as a company well-versed in financial disclosure, LB Finance won the Gold Award in the Finance companies and Leasing companies category for the second consecutive year and won the overall Silver Award for ‘Integrated Reporting: Best Disclosure on Capital Management’, the Annual Report Awards competition 2018 was organised Chartered Accountants of Sri Lanka to set the benchmark in promoting transparency, accountability and good governance among organisations in Sri Lanka.