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.
The Company was established in 1971 and through the years has built a strong reputation as one of Sri Lanka’s most trusted financial organisations. With a total deposit base of over Rs. 52 Billion and branch network reaching to all nook and corners of the Country, LB Finance remains one of the largest non-banking deposit mobilizers in the industry.
The Company also offers a variety of other services including Leasing, Factoring, Hire Purchasing, Micro Finance, Mortgage Loans and Gold Loans. LB Finance is licensed by the Monetary Board of the Central Bank of Sri Lanka under the Finance Business Act No. 42 of 2011.