LB Finance delivers 116 percent growth

L. B. Finance is aiming to explore new market opportunities on the back of a significant growth of 116 percent in profit at Rs.54 million for the 3rd quarter compared to the same quarter previous year.

According to the company’s unaudited accounts, the growth in net interest income which is the interest income, over interest expenses - a key indicator of the health of the company’s business, accomplished a growth of 36 percent at Rs.401 million. “This growth contributed towards a healthy growth in net income of 434 million,” L B Finance Managing Director, Sumith Adhihetty said in a statement.

The company, which accumulates funds from individual lenders through interest-earning fixed deposits, while accompanying them with bank borrowings, recorded a 39 percent revenue growth for the nine months, as at 31st December 2006 with Rs.904 million, against Rs.649 million in the same period in 2005.

Adhihetty said that the company’s business activity improved at the branches across the country, while deposits augmented by 20 percent. “L B Finance presently claims a deposit base of Rs.4 billion, making it the third largest deposit mobiliser among the finance companies and has been maintaining this position for three years. Over Rs.1 billion deposits have been mobilised during last year and the company had Rs.3.043 billion deposits as at 31st December 2005,” he said, adding that presently the figure stands at Rs. 4.029 billion. Adhihetty further said that the company plans to open five more branches this year while aiming at active customer focus.