L B Finance PBT soars to Rs.2.5 billion
LB finance PLC announced its 2012/13 financial results, highlighting yet another outstanding year of phenomenal highs. Income swelled by a voluminous 40.68 percent over the previous year, to a record of Rs. 11.17 billion during 2012/13. Interest income expanded by 41.49 percent to reach Rs. 10.32 billion during the year. The Company’s pre-tax profit marginally increased by 3.63 percent 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 Rs. 1.70 billion, despite many challenges in the economic environment. Managing Director Sumith Adhihetty says that his team is quite happy with the Company’s performance achieved in what has been described as a difficult year for the economy. “Leasing is the largest contributor to the Company’s loan portfolio accounting for 48.52 percent 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 percent 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 percent stake of L B Finance. The Vallibel group continues to cement its posi- tion 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 percent despite of fluctuating and unfavourable market conditions.
The Statement of Financial Position, Statement of Comprehensive Income, Statement of changes i n Equity and Cash Flow Statement as at 31st March 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.