LB Finance accomplished a stellar performance for the year ended March 31, 2018, the company said in a media release.
Operating Profit before Tax on Financial Services crossed the Rs. 7 bn milestone to reach Rs. 7.8 bn as at March 31, 2018, a growth of 13.2% over the previous year. Total operating income recorded a growth of 20.4% reaching Rs.13.5 bn. Net interest income, the main source of revenue, grew by a phenomenal 21.4% while profit after tax was up by a commendable 8.5% year on year reaching Rs. 4.3 bn in 2017/18 the highest ever recorded in the Company’s history.
Profit before tax grew by 10.3% reaching Rs. 6.4 bn for the financial year 2017/18, one of the highest recorded among all the players in the Non-Banking Financial Institutions (NBFI) Sector for the year. Total assets crowned the Rs. 120 bn mark, recording a growth of 17.6% from the previous year. Profitability in terms of Return on Assets and Return on Equity were recorded at satisfactory levels of 3.8% and 30.5% respectively for the year. Total Deposit base grew by 20.8% over the previous year reaching 73.0 bn for the financial year 2017/18. Net Asset value per share grew by 22.7% over the previous year to Rs. 110.80.
The company maintains its position as a leading financial institution in Sri Lanka, a status which it has leveraged on to expand and reach other markets in Asia, specifically Myanmar. In striving to enhance its credentials as a regional player, the company’s strategy is to focus on the opportunity for growth by taking into account, the matters which are material to the long-term sustainability and the ability to leverage the assets and the expertise of the wider Vallibel One group. In doing so, the intention is to be the first to respond effectively and efficiently to the needs of the company’s key stakeholders by aligning the corporate strategy, in cognisance with the prevailing economic environment and prospective opportunities.
Managing Director of LB Finance, Sumith Adhihetty said, “While changes in the economy are beyond our control, we want to be prepared to always be at the forefront of change management. This means having a broad and forward-looking perspective in order to foresee our customer’s needs and actively seeking opportunities to achieve a sustainable competitive advantage, enhance our corporate value, and continue to create wealth for all of our stakeholders: our shareholders, customers, our employees and their families as well as the local societies in which we operate.”
LB Finance recorded a strong, above industry average total capital adequacy ratio of 19.8% as at March 31, 2018 against the minimum regulatory requirement of 10% demonstrating its robust financial stability. Further, A- (lka) rating from Fitch Ratings Lanka Ltd. with a stable outlook denotes expectations of low default risk and strong capacity for payment of financial commitments. Moreover LB Finance maintained its NPL rate at 2.37% while the industry rate was 5.9%.