LB Finance PLC recorded an operating profit of Rs. 9.8 bn before Tax on Financial Services for the year ending March, 2019, showing a 24.9% increase from 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.
The company surpassed the Rs. 5 bn mark for the first time in its history by recording a profit after tax of Rs. 5.1 bn showing a 18.9% growth over the previous year’s mark of Rs. 4.3 bn. Profit before taxes for the year under review was Rs. 7.7 bn which was another remarkable 19.5% increase from Rs. 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 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 Rs. 29.3 bn. This is up 16.9% from the same period in the previous year, which was at Rs 25.0 bn. Highlighting the public trust in the company as well as its popularity with the public, LBF surpassed the impressive Rs. 80 bn mark in their deposit base recording Rs. 83.2 bn.
Total assets of LBF increased to Rs. 136.4 bn from 120.8 bn in the year preceding. The net asset value per share stands at Rs. 133.03 up from Rs. 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%. Managing Director of LB Finance, Sumith Adhihetty 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.”