LB Finance crosses landmark

Rs 1 b in net profits:

LB Finance marked its 40th year in the financial services industry with a resounding Rs 1.02 bn net profit after tax for the year ended March 31, 2011, a 104 percent increase from the previous year’s Rs 500.16 mn.
 
The company reported a 33 percent increase in its total income for the year ended March 31, 2011 from the previous year’s Rs 4.13 bn to a strong Rs 5.50 bn and also clocked a net interest income of Rs 2.72 bn, a 60 percent increase from 2010’s Rs 1.7 bn.

The company’s asset base stood at a remarkable Rs 28.08 bn, again showing a massive increase of 63 percent from the previous year’s Rs 17.2 bn, while its deposit base grew by 57 percent to Rs 19.62 bn from Rs 12.49 bn in 2010.

The financial giant also saw unprecedented growth in market capitalisation with 465 percent increase from the previous year’s Rs 2.15 bn to Rs 12.13 bn, as well as 49 percent increase in total shareholders’ equity from Rs 1.76 bn in 2010 to Rs 2.61 bn.

The company further reported that a significant 95.74 percent of its total income came from its core business activities, a great indicator in the financial services industry. “This year is already a landmark year for us as we celebrate our 40th anniversary and we have now surpassed our own expectations by achieving Rs 1 bn in net profits,” LB Finance Managing Director Sumith Adhihetty said.

“The market has taken a positive turn over the last year after several challenging years, and while we have continually maintained an exemplary performance in previous years despite negative market forces, the renewed confidence in the market has definitely played a keyrole in our remarkable performance in 2010 and 2011.

We have stayed true to our passion for what we do and our aspiration to stay true to our stakeholders and respond unswervingly to the confidence and trust placed in us by our depositors,” he said.

Vallibel Group Chairman Dhammika Perera said the growth strategy LB Finance has implemented promises to bring even further growth to the company over the coming years.

“We have seen unprecedented growth over the past few years,” Perera said.

source - www.dailynews.lk