LB Finance PLC, recorded a whopping 9.8 billion (bn) operating profit before tax on financial services for the year ending March, 2019, showing a substantial 24.9% increase from 7.8bn in the year immediately preceding. 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 5 bn mark for the first time in its history by recording a profit after tax of 5.1bn showing a 18.9% growth over the previous year’s mark of 4.3 bn. Profit before taxes for the year under review was 7.7 bn which was another remarkable 19.5% increase from 6.5 bn 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 March 31, 2019 was recorded as 14.4 bn. This is a significant 21.2% increase from 11.9 bn in the year before, standing testament to the company’s success.
The recorded income for the same period was 29.3 bn. This is up 16.9% from the same period in the previous year, which was at 25 bn. Highlighting the public trust in the company as well as its popularity with the public, LBF surpassed the impressive 80 bn mark in their deposit base recording an 83.2 bn from 73 bn in the year before.
Total assets of LBF increased to 136.4 bn from 120.8 bn in the year preceding. The net asset value per share stands at 133.03 up from 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, Sumith Adhihetty, Managing Director of LB Finance 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.”
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