LB Finance profits up by 47%, continues to dominate Financial pace-setters

LB Finance confirmed its continuous dominance despite a nerve-racking year for the finance industry, recording a momentous 47% increase in net profits for the 3rd quarter of 2009/10.

LB Finance reported that its total earnings grew to Rs. 1.048 billion recording a net profit of Rs. 123 million which is an increase by 47% over the same quarter of the previous year. The profit before tax, according to the financial statement released to the media, was up by 44% to Rs. 211 Mn. The 3rd quarter ensured that the company continues to remain resilient to negative market forces recording a 19% rise in profits in the preceding 9 months for the year under review.

Profits before tax were up to Rs. 486,mn from Rs.419 mn as against the same time period of the preceding year.

Sumith Adhihetty, Managing Director of LB Finance attributed his company's continued impressive performance to prudent financial stewardship and far-sighted vision which enabled the company to remain robust even during a turbulent year.

"We have built our success on a sound footing and remain passionately accountable as financial stewards, unfailingly responding to the confidence our depositors have placed in us", he said.

The company continued to strengthen its retail business, employing innovation and reach, opening new branches which resulted in deposits growing to 11.8 billion as at 31st December 2009.

As the company took roots in more provinces its focus on reaching out to people living below the poverty line grew substantially. "We are developing our own model in micro-finance where we will commit ourselves to bringing more people into the formal economy", Adhihetty said.

He further said that the company is setting in motion an aggressive growth strategy which should see renewed growth in the current year. "LB Finance has been recording phenomenal growth in the past few years, providing the momentum for ambitious expansion and product innovation. We will open more branches this year and offer the market more tailor-made products", he added.

LB Finance operates through a highly-integrated network of 26 branches and 44 Pawning centres offering cutting edge solutions through services such as acceptance of deposits, leasing, hire purchase, consumer durable financing, mortgage loans, pawn broking and other credit facilities.