LB Finance crosses landmark Rs. 1 b in net profits

Financial powerhouse LB Finance marked its 40th year in the financial services industry with a resounding Rs. 1.02 b net profit after tax for the year ended 31 March 2011, a spectacular 104% increase from the previous year’s Rs. 500.16 m.

The trailblazing finance company announced its financial results for 2010/2011, boasting significant growth in several key areas including income, profits, assets and market capitalisation and consolidating its already resilient position in the country’s financial realm.

LB Finance reported a 33% increase in its total income for the year ended 31 March 2011 from the previous year’s Rs. 4.13 b to a strong Rs. 5.50 b and also clocked a net interest income of Rs. 2.72 b, a 60% increase from 2010’s Rs. 1.7 b.

The company’s asset base stood at a remarkable Rs. 28.08 b, again showing a massive increase of 63% from the previous year’s Rs. 17.2 b, while its deposit base grew by 57% to Rs. 19.62 b from Rs. 12.49 b in 2010.

The financial giant also saw unprecedented growth in market capitalisation with 465% increase from the previous year’s Rs. 2.15 b to Rs. 12.13 b, as well as 49% increase in total shareholders’ equity from Rs. 1.76 b in 2010 to Rs. 2.61 b. The company further reported that a significant 95.74% of its total income came from its core business activities, a great indicator in the financial services industry.  

“This year is already a landmark year for us as we celebrate our 40th anniversary and we have now surpassed our own expectations by achieving Rs. 1 b in net profits,” stated Sumith Adhihetty, Managing Director of LB Finance.

“The market has taken a positive turn over the last year after several challenging years, and while we have continually maintained an exemplary performance in previous years despite negative market forces, the renewed confidence in the market has definitely played a key role in our remarkable performance in 2010/2011. We have stayed true to our passion for what we do and our aspiration to stay true to our stakeholders and respond unswervingly to the confidence and trust placed in us by our depositors.”  

A respected pioneer in the industry boasting a team of over 1,200 employees, LB Finance further strengthened its operations with several new branch openings during the period under review. “Aggressive expansion of our reach within the country is one of our long-term goals and we have now taken root all across the island including the north and east, where we feel our presence is important for post-war recovery and growth,” said Adhihetty.

“We will persevere with our ambitious expansion and innovation strategies that offer more appropriate financial solutions to the Sri Lankan public, especially small and medium enterprises, and bringing more Sri Lankans into the formal economy.”

One of the giant Vallibel Group’s star performers, LB Finance has been built on the foundation of prudent financial stewardship. Dhammika Perera, Chairman of the Vallibel Group stated that the growth strategy LB Finance has implemented promises to bring even further growth to the company over the coming years.

“We have seen unprecedented growth over the past few years,” elaborated Perera. “With positive market conditions projected for the upcoming year, we are pushing forward with an aim to elevate LB Finance to being one of the best-managed and profitable companies in the region.”

LB Finance operates through a highly-integrated network of branches offering cutting-edge solutions through services such as leasing, fixed deposits, hire purchase, microfinance, inland money transfer, Islamic finance, factoring and other credit facilities.