LB Finance : Interim Financial Statement for the Quarter ended 30.06.2022

LB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

Period ended 30 June 2022		COMPANY
	FOR THE 3 MONTHS ENDED
	30.06.2022	30.06.2021	Change
	Rs.('000)	Rs.('000)	%
Income	8,524,817	6,519,387	31
Interest Income	7,738,975	6,082,300	27
Less : Interest Expenses	3,082,431	2,192,548	41
Net Interest Income	4,656,544	3,889,752	20
Fee and Commission Income	755,941	402,466	88
Net Trading Income	(3,759)	(2,737)	37
Other Operating Income	33,660	37,358	(10)
Total Operating Income	5,442,386	4,326,839	26
Less : Impairment Charges and Other Losses	190,998	593,955	(68)
Net Operating Income	5,251,388	3,732,884	41
Less : Operating Expenses
Personnel Expenses	869,309	763,260	14
Depreciation of Property, Plant and Equipment	207,538	180,062	15
Amortisation of Intangible Assets	2,258	3,529	(36)
Other Operating Expenses	630,520	530,654	19
Total Operating Expenses	1,709,625	1,477,505	16
Operating Profit before Tax on Financial Services
3,541,763	2,255,379	57
Less : Tax on Financial Services	614,079	367,975	67
Profit before Taxation	2,927,684	1,887,404	55
Less : Income Tax Expense	856,002	544,514	57
Profit for the Period	2,071,682	1,342,890	54
Basic Earnings per Share (Rs.)
3.74	2.42	54
Other Comprehensive Income
Other Comprehensive Income that will never be Reclassified to Income
Statement
Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through
Other Comprehensive Income	(14,657)	(13,405)	9
Net Other Comprehensive Income that will never be Reclassified to Income
Statement	(14,657)	(13,405)	9
Other Comprehensive Income for the Period, Net of Tax
(14,657)	(13,405)	9
Total Comprehensive Income for the Period, Net of Tax
2,057,025	1,329,485	55

LB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

Period ended 30 June 2022

Income

Interest Income

Less : Interest Expenses

Net Interest Income

Fee and Commission Income

Net Trading Income

Other Operating Income

Total Operating Income

Less : Impairment Charges and Other Losses

Net Operating Income

Less : Operating Expenses

Personnel Expenses

Depreciation of Property, Plant and Equipment

Amortisation of Intangible Assets

Other Operating Expenses

Total Operating Expenses

Operating Profit before Tax on Financial Services

Less : Tax on Financial Services

Profit before Taxation

Less : Income Tax Expense

Profit for the Period

Profit Attributable to:

Equity Holders of the Company

Non-Controlling Interest

Profit for the Period

Basic Earnings per Share (Rs.)

Other Comprehensive Income

Other Comprehensive Income that will be Reclassified to Income Statement

Net Gains/(Losses) from Translating the Financial Statements of the Foreign Operations

Net Other Comprehensive Income that will be Reclassified to Income Statement

Other Comprehensive Income that will never be Reclassified to Income Statement Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through Other Comprehensive Income

GROUP

FOR THE 3 MONTHS ENDED

30.06.2022	30.06.2021	Change
Rs.('000)	Rs.('000)	%
8,602,970	6,533,270	32
7,810,215	6,097,306	28
3,093,264	2,196,380	41
4,716,951	3,900,926	21
761,505	403,405	89
(3,759)	(2,737)	37
35,011	35,296	(1)
5,509,707	4,336,890	27
175,951	577,352	(70)
5,333,756	3,759,538	42
902,321	775,163	16
212,995	180,631	18
3,568	4,356	(18)
652,752	537,858	21
1,771,637	1,498,008	18
3,562,120	2,261,530	58
615,399	367,975	67
2,946,720	1,893,555	56
860,006	542,463	59
2,086,715	1,351,092	54
2,089,284	1,351,092	55
(2,569)	-	(100)
2,086,715	1,351,092	54
3.77	2.44	54

126,145	(102,381)	>100
126,145	(102,381)	>100

(14,657) (13,405) 9

Net Other Comprehensive Income that will never be Reclassified to Income Statement	(14,657)	(13,405)	9
Other Comprehensive Income for the Period, Net of Tax
111,488	(115,786)	>100
Total Comprehensive Income for the Period, Net of Tax
2,198,202	1,235,306	78
Attributable to:
Equity Holders of the Company	2,200,771	1,235,306	78
Non-Controlling Interest	(2,569)	-	(100)
Total Comprehensive Income for the Period, Net of Tax	2,198,202	1,235,306	78

LB FINANCE PLC

STATEMENT OF FINANCIAL POSITION

As at 30 June 2022	Company	Group
		Audited			Audited
	30.06.2022	31.03.2022	30.06.2022		31.03.2022
	Rs.('000)	Rs.('000)	Rs.('000)		Rs.('000)
Assets
Cash and Cash Equivalents	9,366,958	14,458,986	9,463,445		14,634,136
Financial Assets Recognised Through Profit or Loss - Measured at Fair
Value	9,448	13,208	9,448		13,208
Financial Assets at Amortised Cost - Loans and Receivables	99,951,306	92,837,601	101,148,840		93,897,204
Financial Assets at Amortised Cost - Lease Rentals Receivable and Stock
out on Hire	38,681,820	41,558,002	38,756,241		41,640,197
Financial Assets Measured at Fair Value Through Other Comprehensive
Income	71,368	86,102	71,370		86,104
Other Financial Assets	8,231,082	5,598,624	8,414,501		5,655,767
Other Non Financial Assets	512,327	454,711	550,591		500,581
Investment in Subsidiary	921,997	921,162	-		-
Property, Plant and Equipment and Right-of-Use Assets	8,488,014	8,421,741	8,512,430		8,448,930
Investment Properties	-	-	71,150		71,150
Intangible Assets	12,618	14,875	129,207		131,000
Total Assets	166,246,938	164,365,012	167,127,223		165,078,277
Liabilities
Due to Banks	23,442,194	26,858,737	23,447,230		26,861,944
Financial Liabilities at Amortised Cost - Due to Depositors	94,049,620	89,143,982	94,406,265		89,478,506
Debt Instruments Issued and Other Borrowed Funds	8,201,488	8,564,617	8,201,488		8,564,617
Other Financial Liabilities	3,042,460	3,305,112	3,076,766		3,343,419
Other Non Financial Liabilities	3,638,864	1,134,771	3,692,393		1,182,278
Current Tax Liabilities	1,757,335	1,882,242	1,753,198		1,875,082
Deferred Tax Liabilities	111,486	111,486	111,486		111,487
Post Employment Benefit Liability	327,698	316,973	331,798		323,833
Total Liabilities	134,571,145	131,317,920	135,020,624		131,741,166
Equity
Stated Capital	838,282	838,282	838,282		838,282
Reserves	8,127,585	8,038,658	8,522,368		8,307,296
Retained Earnings	22,709,926	24,170,152	22,643,220		24,085,844
Total Equity Attributable to Equity Holders of the Company	31,675,793	33,047,092	32,003,870		33,231,422
Non Controlling Interest	-	-	102,729		105,689
Total Equity	31,675,793	33,047,092	32,106,599		33,337,111
Total Liabilities and Equity	166,246,938	164,365,012	167,127,223		165,078,277
Net Asset Value per Share (Rs.)	57.17	59.65	57.76		59.98
Commitments and Contingencies	2,090,846	1,694,463	2,090,846		1,694,463

The information contained in these statements have been extracted from the unaudited Financial Statements unless indicated as "Audited".

CERTIFICATION:

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

(Sgd.)

Malith Hewage

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board of Directors by,

(Sgd.)	(Sgd.)
J A S Sumith Adhihetty	M A J W Jayasekara
Managing Director	Director
20 July 2022
Colombo

LB FINANCE PLC

STATEMENT OF CHANGES IN EQUITY - COMPANY

	Retained	Statutory	Fair Value
Stated Capital	Earnings	Reserve	Reserve	Total Equity
Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)

Balance as at 01 April 2021 (Audited)				838,282	19,754,900	7,683,689	(87,583)	28,189,288
Net Profit for the Period				-	1,342,890	-	-	1,342,890
Other Comprehensive Income, Net of Tax				-	-	-	(13,405)	(13,405)
Transfers During the Period				-	(268,578)	268,578	-	-
Balance as at 30 June 2021				838,282	20,829,212	7,952,267	(100,988)	29,518,773
Balance as at 01 April 2022 (Audited)				838,282	24,170,152	8,116,782	(78,124)	33,047,092
Surcharge Tax				-	(2,320,210)	-	-	(2,320,210)
Balance After Surcharge Tax				838,282	21,849,942	8,116,782	(78,124)	30,726,882
Net Profit for the Period				-	2,071,682	-	-	2,071,682
Other Comprehensive Income, Net of Tax				-	-	-	(14,657)	(14,657)
Transfers During the Period				-	(103,584)	103,584	-	-
Final Dividend for 2021/22				-	(1,108,114)	-	-	(1,108,114)
Balance as at 30 June 2022				838,282	22,709,926	8,220,366	(92,781)	31,675,793
STATEMENT OF CHANGES IN EQUITY - GROUP
				Foreign		Total Equity
				Currency		Attributable to
		Retained	Statutory	Translation	Fair Value	Equity Holders	Non-Controlling
	Stated Capital	Earnings	Reserve	Reserve	Reserve	of the Company	Interest	Total Equity
	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)
Balance as at 01 April 2021 (Audited)	838,282	19,801,953	7,683,689	150,901	(87,583)	28,387,242	-	28,387,242
Net Profit for the Period	-	1,351,092	-	-	-	1,351,092	-	1,351,092
Other Comprehensive Income, Net of Tax	-	-	-	(102,381)	(13,405)	(115,786)	-	(115,786)
Transfers During the Period	-	(268,578)	268,578	-	-	-	-	-
Balance as at 30 June 2021	838,282	20,884,467	7,952,267	48,520	(100,988)	29,622,548	-	29,622,548
Balance as at 01 April 2022 (Audited)	838,282	24,085,844	8,116,782	268,638	(78,124)	33,231,422	105,689	33,337,111	#
Surcharge Tax	-	(2,320,210)	-	-	-	(2,320,210)	-	(2,320,210)
Balance After Surcharge Tax	838,282	21,765,634	8,116,782	268,638	(78,124)	30,911,212	105,689	31,016,901
Net Profit for the Period	-	2,089,284	-	-	-	2,089,284	(2,569)	2,086,715
Other Comprehensive Income, Net of Tax	-	-	-	126,145	(14,657)	111,488	-	111,488
Transfers During the Period	-	(103,584)	103,584	-	-	-	-	-
Disposal of Shares	-	-	-	-	-	-	(391)	(391)
Final Dividend for 2021/22	-	(1,108,114)	-	-	-	(1,108,114)	-	(1,108,114)
Balance as at 30 June 2022	838,282	22,643,220	8,220,366	394,783	(92,781)	32,003,870	102,729	32,106,599	#