Sri Lanka’s LB Finance Sept net up 30-pct

ECONOMYNEXT – Profits at Sri Lanka’s LB Finance Plc rose 30 percent from a year earlier to 1.2 billion rupees in the September 2018 quarter on improving interest income margins and fee income, interim accounts showed.

Earnings were 8.89 rupees a share in the quarter. In the six months to end September, earnings were 17.30 rupees a share on a profit of 2.4 billion rupees, up 26 percent from a year earlier.

The finance company stock was down 2.70 rupees to 117.30 rupees on Wednesday.

In the quarter, net interest income grew 30 percent from a year earlier to 3.6 billion rupees as interest income rose 21 percent to 6.8 billion rupees and interest expenses increased a slower 12 percent to 3.2 billion rupees.

Fee and commission income grew 16 percent to 401.3 million rupees.

Bad loans provisioning rose 156 percent to 326 million rupees.

Operating costs increased 8.9 percent to 1.4 billion rupees.

LB Finance’s loan book expanded 5 percent from six months earlier to 42 billion rupees at end September, while its leasing portfolio grew 4 percent in the same period to 65 billion rupees.

Customer deposits grew 7 percent to 78 billion rupees.

LB Finance’s core capital adequacy was at 12.88 percent at end September 2018, higher than the regulatory minimum of 5 percent, but was lower than 14.44 percent six months earlier.

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Total capital adequacy was at 15.76 percent, higher than six months earlier which was at 14.44 percent, and above the 10 percent regulatory minimum.

(COLOMBO, 01 November 2018)

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