LB Finance net profits up 75 percent to Rs. 360 m
Healthy growth in most financial indicators:
LB Finance PLC recorded Rs 359.6 million profit after tax in the
Financial Year ended March 31, 2009 compared to Rs 205.8 million the
previous year which reflects significant growth.
In its annual report Chairman of LB Finance B.M. Amarasekera said
despite the numerous challenges the company has posted a healthy growth
in most financial indicators. The company’s turnover grew by 28 percent
to Rs 3,558 million and net profits by 75 percent to Rs 360 million, he
B. M. Amarasekera, Sumith Adhihetty
The deposit base grew by 31 percent and the total assets of the
company by 30 percent. The company is expanding its presence around the
island with several branches being opened and a substantial investment
has been made in technology improvements across the company.
Managing Director of LB Finance Sumith Adhihetty said, “We continued
to strengthen our asset quality and placed great emphasis on credit and
asset management given the prevailing economic conditions during the
year. Being proactive in our lending policy and in setting lending mix
together with sound recovery practices, reduced the loan loss provision
to Rs 80 million and the NPL ration further improved to 1.70 percent.
The total lending assets as at the end of the year increased to Rs
11,841 million from Rs 9,062 million. Microfinance was given a
significant place in the company’s lending activities during the year.
We expanded our microfinance arm specially in the agro finance area
during the year in addition to our other lending activities, he said.
The deposits performed tremendously well during the year, and the
deposit base rose from Rs 7,309 million to Rs 9,558 million.
The company issued unsecured, subordinated, listed debentures to
raise Rs 450 million during the year and even in a difficult environment
the issue was oversubscribed, he said.
“We are looking forward to new opportunities in the north and east
and will continue to invest in developing human capital and IT.