LB Finance ups 9-month after tax profit by 81% to Rs. 1.1 b

Tuesday, 31 January 2012 00:00 - - {{hitsCtrl.values.hits}}

Following the opening of its much-awaited Corporate Office in Colpetty recently, LB Finance PLC recently unveiled another mark of its success as Sri Lanka’s best-established financier; resounding financial results in the first 9 months of FY 2011/2012.

The company’s income rose by 45% over the 9 months, to stand at Rs. 5.596 billion as at December 31st 2011. Propelled by its solid lending portfolio, Net Interest Income grew by 34% to Rs. 2.622 billion.

LB Finance said it has consistently recorded massive increases in its profits over the years thanks to expedited growth and development; following this course, Profit After Tax grew by a staggering 81% year-on year to stand at Rs. 1.1 billion as at end-December 2011.

Managing Director Sumith Adhihetty expressed his pleasure at the growth stating “An 81% increase in profits is heartening news, taking in to account the unstable liquidity position the economy faced during end 2011.”

The LB Finance product range which is spearheaded by its trademark easy Leasing and Hire Purchase facilities contributed to a total asset base of Rs. 38 billion, including a total of Rs. 32 billion worth of lending. This signifies a 37.6% increase on the 2010 December figure of Rs. 28 billion. In addition to lending facilities, the company’s primary mover and chief funding factor is their benefit-heavy Fixed Deposit schemes; deposit base grew rapidly to Rs. 24 billion over the 9 months from the Rs. 19 billion recorded last December.

Net worth of LB Finance shares improved with the healthy financials recorded as Net Assets per Share grew exponentially from the Rs. 37.74 during the last financial year to Rs. 50.78 at end-December 2011. Investors will be encouraged by the steady path of success the company has been making over the years, culminating in the January opening of its seven-storeyed Corporate Office on Dharmapala Mawatha.

“We place great value in achieving progressively higher incomes and expanding our operations across the country,” says Dhammika Perera, visionary entrepreneur and dynamic Deputy Chairman of LB Finance, “However, LB Finance maintains that it is our customer-oriented work ethic that upholds us as a true financial trailblazer in the Sri Lankan financial sphere!”