LB Finance declares final dividends of over Rs. 1b
LB Finance PLC declared a first and final dividend of Rs. 7.50 per
share (par value of Rs 5.00) to the shareholders for the financial year
2015/16. This is an increase of 50% from the previous year, with a total
dividend declaration exceeding Rs. 1 Billion.
This is the highest dividend paid in the company's history and stands
as a testament to the company's attitude towards providing the highest
possible return to the shareholder. Financial year 2015/16 was one of
the most successful years in history for LB Finance PLC with a
staggering profit after tax of Rs. 3.7 Billion. This was a 70% growth
from the Rs. 2.1 Billion achieved in the previous financial year. During
the financial year 2015/16, all key indicators were on the up with Net
Interest Income rising to Rs. 8.6 billion, an increase of 12% over the
previous year's Rs. 7.7 Billion. The Total Operating Income grew to Rs.
9.8 Billion compared to 8.8 Billion recorded over the corresponding
period, an increase of 12%. Net operating Income rose by 39% to Rs 9.4
billion compared to Rs 6.8 Billion recorded previous year. A notable
reduction in expenses came through reduced impairment charges which
recorded a 79% reduction to Rs. 382.4 Million.
Total Assets amassed to Rs 84.5 Billion as at the end of the
financial year 2015/16, an increase of 25% over the previous year's
figure of Rs 67.5 Billion. Total Loans and Advances grew by 28% to Rs
71.5 Billion as the company continued to focus on core business
activities with 95.95% of the Total Assets being Interest Earning
Assets.
"Despite the challenges posed by subdued economic growth and volatile
market conditions, the company managed to thrive in the Non-Banking
Financial Industry and achieve results well within shareholders'
expectations, owing to our sound business model. Thus we managed to
declare a total dividend in excess of Rs. 1 Billion to our shareholders.
We will continue to follow through on our core values and provide a high
quality, most convenient service to our customers", says Mr. Adhihetty. |