LB Finance posts 2.53 bn ptp

LB finance PLC 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. Interest income expanded by 41.49% to reach Rs 10.32 billion during the year.

Deputy Chairman Dhammika Perera	Managing Director Sumit Adhihetty

The Company’s pre-tax profit marginally increased by 3.63% to Rs. 2.53 billion, back of the Company’s renowned operational strategies and its impressive lending portfolio, stemmed mainly from leasing and gold loans. Overall the post-tax profit recorded at Rs1.70 billion, despite many challenges in the economic environment.

Sumith Adhihetty, the Company’s Managing Director said that his team is quite happy with the Company’s performance achieved in what has been described as a difficult year for the economy.

He said his 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.

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 says 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”, he states.

Vallibel One which is a diversified holding Company with strategic investments has a 51% Stake of L B Finance.The Vallibel group continues to cement its position in the Sri Lankan corporate sphere with far-encompassing interests including PABC Bank, Hayleys PLC, Amaya Resorts, Royal Ceramics, Fortress Resort, Delmege and Lanka Walltile. With its vision to bring easy-to-use financial tools to the people of the county, 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 a steady growth in the asset base of 27.17% despite of 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 March 31, 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 January 1, 2012 and comparatives(year 2012 and 2011) are reclassified and re-measured.