LB Finance net income, profit rise to record levels

LB Finance Chairman B. M. Amarasekera said gross and net income rose to record levels and also profit before tax, resulting in enhancing the earnings per share to Rs. 8.93, the highest ever posted in the history of the company.

Presenting the annual report of the company for the financial year ended March 31, 2006, he said consequent to the high performance, our tax liability has increased to Rs. 52.5 million, nearly threefold the amount recorded for the last year. Interest income, an important indicator of performance was also the highest ever achieved.

The company's remarkable growth has been achieved with only a marginal increase in operational costs recorded for the previous financial year.

The cost containment achieved is an indicator of the trend in the efficiency ratio of the operational activities, he said.

The key indicators which have contributed to the growth are the cost control exercise, introduction of a culture geared to achieve the company's goals and identifying an inspiring cohesive team committed to achieve results.

Managing Director Sumith Adhihetty said the results achieved by L B Finance during the past financial year have been dramatic. The volume of business grew nearly 60%. The number of customers rose by 47% and pre-tax profit grew as high as 195%. Interest income, a key indicator of the health of our business, attained record levels, as did profits.

All our lines of business, from leasing to hire purchase to pawnbroking, contributed to these outstanding results. Business activity increased at our branches across the country.

Productivity and operational efficiency reached unprecedented levels. By any measure, this was the best year ever at LB Finance, he said.

This excellent performance was achieved through well planned management strategy and effort. It is the result of staff activity based on a business model that focuses our efforts on the most important factor in business success - customers. The focal point of management is 'active customer focus.' The management employed innovative strategies to attract depositors and customers which have paid off.

L B Finance mobilises funds from individual lenders in the form of interest-earning fixed deposits. It supplements these with bank borrowings. Another vital aspect of our business is the focus on loan recovery by employing suitable means to accelerate recoveries, he said.