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
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
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.