LB Finance net profit up 97% to Rs. 94.305m in 1H, 2006

L B Finance set the pace for another robust year again when the company posted a Rs.135.6 million pre tax profit for the first half ended September 30, 2006, compared to Rs.67.8 million recorded in the corresponding period in 2005, backed by well planned management strategy and stringent controls.

The profit also displayed a 100% increase compared to the corresponding period of 2005, while the company's net profit achieved Rs.94.305 million compared to Rs.47.830 million in 2005, an increase of 97%.

The volume of business grew by 37% and the number of customers rose by 11%.

Another fundamental feature of the business is the focal point on loan recovery by utilising appropriate measures to speed up recoveries.

Net Interest income, which is the interest income, over interest expenses - a key indicator of the health of the company's business, reached record levels, at Rs.136.54 million. Continued growth in lending volumes, better recovery practices and spread growth added to this increase. All lines of business, from leasing to hire purchase to pawnbroking, contributed to the overall exceptional results.

The management employed pioneering strategies to draw depositors and customers, while productivity and operational efficiency attained unprecedented levels.

Business activity increased at the branches across the country, while deposits amplified by 13%. L B Finance boasts a deposit base of 3,788.48 million making it the third largest deposit mobiliser in the country.

Assistant General Manager, Business Development Athula Jayasekera commenting on the company's encouraging achievement said that energetic customer focus and reshuffling the company's operations to secure the customers' needs through trained personnel are behind the healthy results.

"We also expanded our allure to appeal to a wider range of customers," he said, adding that together with branch expansion, an increase in sales force and concentrating business development efforts on credit finance all augmented the boost in results.