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LB Finance recorded a pre tax profit of Rs. 70 million during the year 2004-2005, claimed to be the highest in the company's history. The asset base has grown from Rs. 2.5 billion to Rs. 3.4 billion, a growth of 36%. Earnings per share has grown from Rs. 0.24 to Rs. 3.59 recording the best ever in the recent history of the company.

Managing Director Sumith Adihetty said the past 15-month period has seen a tremendous improvement in the company's deposit mobilisation recording an increase of 29% over the previous year. He said that the change in management and the depositor confidence is the reason for this increase. The company enjoys the third largest deposit base in the country.

The deposit base has grown from Rs. 2,006 million to Rs. 2,606 million during the period under review. "The company was able to reduce the interest cost on the deposit base which helped us to be more competitive in the lending business," he said.

Adihetty said the company's advances portfolio primarily consists of leasing, hire purchase, pawn broking and mortgage loans. We have diversified our advances portfolio from medium and small scale financing to micro financing and have built a sustainable risk and reward base portfolio which has stability and return.

With the new management we developed a business model that is more customer friendly with value addition, credit evaluation techniques and follow up. Together with the new mission and vision of the company we were able to reap the benefits of the business model within a short time. "We also became a preferred leasing and hire purchase facility provider during this time," he said.

Total disbursements during the period under review were Rs. 3,066 million, a growth of Rs. 1.4 million compared to the previous year. The main contributors to the growth were hire purchase advances and pawning advances. The gross investments in leasing increased by Rs. 174 million to end at Rs. 1,646.5 million.

Pawn broking a micro credit facility started in 1998 has recorded a growth of 48%. It is a risk free business that provides a higher return on investment. Due to the demand for quick cash combined with convenience the company added eight locations.

www.ceylincoproperties.com

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