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LB Finance : 2019/20 FY records pre-tax profit of Rs. 9.9 bn in challenging environment

06/07/2020 | 11:59pm

LB Finance (LBF) recorded a strong performance for the financial year ending March 31, 2020 with the company posting an operating profit before tax on financial services of Rs. 9.9 billion for the review period, the company said in a media release.

Income for the year increased by 7 per cent year-on-year to Rs. 31.2 billion at the end of the financial year of which interest income to the company was Rs. 29.2 billion, a 7 per cent Y-O-Y improvement.

The company's cost to income ratio stood at 33 per cent, denoting its efficient cost management. Meanwhile, the company's total assets as at end March 2020 stood at Rs. 144 billion in comparison to Rs.136 billion as at end March 2019, with more than 90 per cent of them being income generating assets which are backed by solid securities.

'Our profitability has been increasing every year surpassing all our peer groups. This year too, in spite of challenging unexpected external shocks, LBF showed our resilience, prudent management skills and sustainable pursuit of growth. Changes in the economy and disruptions such as the Easter Sunday attack and COVID-19 pandemic are beyond our control. Nevertheless, we consistently remain a step ahead of such external challenges by adopting prudent practices, anticipating customer needs and seeking opportunities to maintain sustainable competitive advantage. Looking ahead, we have already laid a strong foundation by executing robust business plan and well thought-out business strategies for future path,' said Sumith Adhihetty, LBF Managing Director in the statement.

LB Finance's total capital adequacy ratio as at the end of the financial year stood at 20.75 per cent as compared with a minimum regulatory requirement of 11 percent. LB Finance consistently maintains the industry's lowest NPL (Non-Performing-Loan) ratio which shows the superiority of its asset quality. This year too, the company succeeded in maintaining an NPL ratio of 3.93 per cent and a net NPL of -0.12 per cent through prudent lending and efficient recovery methods.

Meanwhile, the company's first overseas venture, LB Micro Finance Myanmar Ltd, is now making profits, less than three years since its inception. In addition to this, LBF further enhanced its technology offering, the release said.

© Pakistan Press International, source Asianet-Pakistan

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