LB Finance posts Rs. 2.5 b pre-tax profit

Tuesday, 11 June 2013 00:02 - - {{hitsCtrl.values.hits}}

Financial powerhouse LB finance PLC yesterday announced its 2012/13 financial results, highlighting yet another outstanding year of phenomenal highs.

Income swelled by a voluminous 40.68% over the previous year to a record of Rs. 11.17 billion during 2012/13, while interest income expanded by 41.49% to reach Rs. 10.32 billion during the year.

The company’s pre-tax profit marginally increased by 3.63% to Rs. 2.53 billion on the back of the company’s renowned operational strategies and its impressive lending portfolio, stemmed mainly from leasing and gold loans. Overall, post-tax profit was recorded at Rs. 1.70 billion, despite many challenges in the economic environment.

LB Finance Managing Director Sumith Adhihetty said that his team was quite happy with the company’s performance achieved in what has been described as a difficult year for the economy. He stated that the company is reaping the sustained benefits of a far-sighted business and operational strategy that turned the four-decade old giant to the forefront as a trailblazer under the inspirational leadership of Dhammika Perera.

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The company’s product portfolio led by its trademark easy leasing and hire-purchase facilities. Leasing is the largest contributor to the company’s loan portfolio accounting for 48.52% of its lending portfolio. The veteran financier said that the results assume significance considering the fluctuating and unfavourable conditions that prevailed in the market.

Deposits, the chief indicator of a finance company’s standing in society showed heartening growth accumulating up to Rs. 38.74 billion. This is a 42.58% increase over the previous year’s figure of Rs. 27.17 billion. “What has been most gratifying is the continued confidence investors place in LB Finance,” Adhihetty stated.

Vallibel One, a diversified holding company with strategic investments, has a 51% stake in LB Finance. The Vallibel group continues to cement its position in the Sri Lankan corporate sphere with far-encompassing interests including PABC Bank, Hayleys, Amaya Resorts, Royal Ceramics, Fortress Resort, Delmege and Lanka Walltiles. With its vision to bring easy-to-use financial tools to the people of the country, LB Finance is poised to rise further into the upper echelons of the Sri Lankan corporate world over the new financial year.

As per the audited financial statements published at the Colombo Stock Exchange (CSE) for the year 2012/13, the company has experienced steady growth in its asset-base of 27.17% despite fluctuating and unfavourable market conditions.

The statement of financial position, statement of comprehensive income, statement of changes in equity and cash flow statement as at 31 March 2013 and for the year ended have been prepared in accordance with Sri Lanka Accounting Standards; comprising of Sri Lanka Financial Reporting Standards (SLFRSs) and Lanka Accounting Standards (LKASs) laid down by the Institute of Chartered Accountants of Sri Lanka and in compliance with the requirements of the Companies Act No. 07 of 2007. These SLFRSs were effective from 1 January 2012 and comparatives (2012 and 2011) are reclassified and re-measured.