LFIN - LB Finance

LB Finance Sept net up 30-pct

ECONOMYNEXT - Profits at Sri Lanka's LB Finance Plc rose 30 percent from a year earlier to 1.2 billion rupees in the September 2018 quarter on improving interest income margins and fee income, interim accounts showed.

Earnings were 8.89 rupees a share in the quarter. In the six months to end September, earnings were 17.30 rupees a share on a profit of 2.4 billion rupees, up 26 percent from a year earlier.

The finance company stock was down 2.70 rupees to 117.30 rupees on Wednesday.

In the quarter, net interest income grew 30 percent from a year earlier to 3.6 billion rupees as interest income rose 21 percent to 6.8 billion rupees and interest expenses increased a slower 12 percent to 3.2 billion rupees.

Fee and commission income grew 16 percent to 401.3 million rupees.

Bad loans provisioning rose 156 percent to 326 million rupees.

Operating costs increased 8.9 percent to 1.4 billion rupees.

LB Finance's loan book expanded 5 percent from six months earlier to 42 billion rupees at end September, while its leasing portfolio grew 4 percent in the same period to 65 billion rupees.

Customer deposits grew 7 percent to 78 billion rupees.

LB Finance's core capital adequacy was at 12.88 percent at end September 2018, higher than the regulatory minimum of 5 percent, but was lower than 14.44 percent six months earlier.

Total capital adequacy was at 15.76 percent, higher than six months earlier which was at 14.44 percent, and above the 10 percent regulatory minimum.

(COLOMBO, 01 November 2018)

Financial Performance- Period ended 31 December 2018

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LB Finance posts a record Rs. 9.8 b PBT in FY19

LB Finance PLC, the undisputed leader in the non-banking sector, recorded a whopping Rs. 9.8 billion operating profit before tax (PBT) on financial services for the year ending March 2019, showing a substantial 24.9% increase from Rs. 7.8 billion in the preceding year. 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.

Leveraging on customers’ loyalty, the company surpassed the Rs. 5 billion mark for the first time in its history by recording a profit after tax of Rs. 5.1 billion, showing an 18.9% growth over the previous year’s mark of Rs. 4.3 billion. Profit before taxes for the year under review was Rs. 7.7 billion, which was another remarkable 19.5% increase from Rs. 6.5 billion 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 the year 2018/19.

The net interest income of LB Finance for the year ended 31 March 2019 was recorded as Rs. 14.4 billion. This is a significant 21.2% increase from Rs. 11.9 billion in the year before, standing testament to the company’s success. The recorded income for the same period was Rs. 29.3 billion. This is up by 16.9% from the same period in the previous year, which was at Rs. 25 billion. Highlighting the public trust in the company as well as its popularity with the public, LBF surpassed the impressive Rs. 80 billion mark in their deposit base, recording Rs. 83.2 billion from Rs. 73 billion in the year before.

In its 48-year history, LBF has made – and continues to do so – great strides in the industry and has proven its mettle, standing strong and stable in times of financial and political stress, which is apparent in the numbers it has recorded in the year. Total assets of LBF increased to Rs. 136.4 billion from Rs. 120.8 billion in the year preceding. The net asset value per share stands at 133.03 up from 110.81in 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%.

Commenting on the performance, LB Finance Managing Director Sumith Adhihetty stated: “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. However, LB Finance managed to triumph through all these issues, with the ratio of FD renewals speaking of the trust the customers continue to have in the institution. LB Finance has an A-(lka) rating from Fitch Ratings with a stable outlook. This rating is testament to the low default risk and strong capacity for repayment of commitments that LB Finance has.”

I had been getting calls from their recovery section looking for one person who has defaulted.
In desperation, once I asked their head of the Call centre whether don't you verify facts and numbers before sanctioning a release for which he had no answer.

කිත්සිරි ද සිල්වා wrote:I had been getting calls from their recovery section looking for one person who has defaulted.
In desperation, once I asked their head of the Call centre whether don't you verify facts and numbers before sanctioning a release for which he had no answer.

Tikak madawanna tibbe.

There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

I feel it's one of best financial stocks in the market not only based on the  financial statements but also the way LFIN share price movement in such a difficult condition.
Hope we could see gradual share price movement as well.

LFINE Earning per share movement in last 8 years


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LFINE Profit After Tax movement in last 8 years


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CK wrote:There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

This is unproffessional and pathetic guys.
Y red flag for CK.Without asking facts even.
Who knows he knows something very important to us.
And its our responsobility to correct one of our members if he believes in false information.
Be ethical and proffessional.

Yes, I am on the same page.
One for All and All for One.

serene wrote:

CK wrote:There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

This is unproffessional and pathetic guys.  
Y red flag for CK.Without asking facts even.
Who knows he knows something very important to us.
And its our responsobility to correct  one of our members if he believes in false information.
Be ethical and proffessional.

කිත්සිරි ද සිල්වා wrote:Yes, I am on the same page.
One for All and All for One.

serene wrote:

CK wrote:There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

This is unproffessional and pathetic guys.  
Y red flag for CK.Without asking facts even.
Who knows he knows something very important to us.
And its our responsobility to correct  one of our members if he believes in false information.
Be ethical and proffessional.

Exactly I also wonder why that comment got red flag. He may know something which we do not aware. I believe we have to behave more professional other wise people will not share any valuable informations in the forum.

CK would you know what the rumor is ? I might be able to get some information..

NIRMALSG wrote:

කිත්සිරි ද සිල්වා wrote:Yes, I am on the same page.
One for All and All for One.

serene wrote:

CK wrote:There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

This is unproffessional and pathetic guys.  
Y red flag for CK.Without asking facts even.
Who knows he knows something very important to us.
And its our responsobility to correct  one of our members if he believes in false information.
Be ethical and proffessional.

Exactly I also wonder why that comment got red flag. He may know something which we do not aware. I believe we have to behave more professional other wise people will not share any valuable informations in the forum.

I dont think red flag is about LFIN rumor.Someone is misusing negative rep function just for fun maybe.වදුරට දැලිපිහිය අහු වුනා වගෙයි . These days kith, ET & many others getting red flags without specific reason.Look at politics thread.ET is bathing blood.Admin should reveal this user coz he is discouraging writers.

spw19721 wrote:

NIRMALSG wrote:

කිත්සිරි ද සිල්වා wrote:Yes, I am on the same page.
One for All and All for One.

serene wrote:

CK wrote:There is a disturbing rumour about LB. But I believe it's a fake and fabricated one.

This is unproffessional and pathetic guys.  
Y red flag for CK.Without asking facts even.
Who knows he knows something very important to us.
And its our responsobility to correct  one of our members if he believes in false information.
Be ethical and proffessional.

Exactly I also wonder why that comment got red flag. He may know something which we do not aware. I believe we have to behave more professional other wise people will not share any valuable informations in the forum.

I dont think  red flag is about LFIN rumor.Someone is misusing negative rep function just for fun  maybe.වදුරට දැලිපිහිය අහු වුනා වගෙයි . These days kith, ET & many others getting red flags without specific reason.Look at politics thread.ET is bathing blood.Admin should reveal this user coz he is discouraging writers.

No use of discussing red flag thing.
Admin happy with this.

If some one misuses red flag facility we also can misuse green flag facility too by flooding the red flagged threads with green.

I sincerely suggest to stop discussing about red flags but discuss the topic at hand. If you know that a certain members is giving too many unwanted flags, send me a PM.

Just though to add some more facts about LFIN.

* Price to book value change in last couple of years

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Admin wrote:I sincerely suggest to stop discussing about red flags but discuss the topic at hand. If you know that a certain members is giving too many unwanted flags, send me a PM.

Ithin ooka disable karanna beri ei?
Malakuna ain kara nan apata messo maranna wenne nane

Nirmal one or two reasons for LFIN favour right now is higher gold loan PF and higher exposure in to Cars and Vans which requires less provision charges.
If economy is up and running PLC CFIN and LoFC has better room for improvement ad they had already accounted in considerable provision in to their P&L.
However currently LFIN far ahead when it comes to bad loan provisioning.

serene wrote:

Admin wrote:I sincerely suggest to stop discussing about red flags but discuss the topic at hand. If you know that a certain members is giving too many unwanted flags, send me a PM.

Ithin ooka disable karanna beri ei?  
Malakuna ain kara nan apata  messo  maranna wenne nane  

It can be disabled. I thought members didn't want it to be disabled.

Please disable the red flag facility.

Nice metaphor Serene.

Majority wanted it disabled. No one wanted it openly. Admin may be referring to PMs he received. ?Can you reveal the names who wanted it.

Admin wrote:

serene wrote:

Admin wrote:I sincerely suggest to stop discussing about red flags but discuss the topic at hand. If you know that a certain members is giving too many unwanted flags, send me a PM.

Ithin ooka disable karanna beri ei?  
Malakuna ain kara nan apata  messo  maranna wenne nane  

It can be disabled. I thought members didn't want it to be disabled.

Financial Performance- Period ended 30 June 2019

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