LB Finance PLC recorded a strong performance over the three months ended 30th June 2017 (Q1) 2017/18, closing the quarter with a pretax profit of Rs 1.7 b due to strong performance experienced in key revenue generating operations. As a result, Total Comprehensive Income for the period was up by 4% year on year (YoY) with a figure of Rs 957.2 Mn.
Income for the quarter rose by 28% YoY to Rs. 5.5 billion of which Interest Income stood at Rs. 5.2 billion reflecting a 29% YoY improvement. The Net Interest Income for the period increased by 10% YoY to Rs. 2.6 billion. The Company’s Fee and Commission Income expanded by 13% YoY to Rs. 299.8 million. As a result the Company’s Total Operating Income for the period increasing by 11% YoY to Rs. 2.9 billion.
Commenting on the strong performance the Company has demonstrated in Q1, LB Finance Managing Director, Sumith Adhihetty said: “LB Finance continues to display remarkable resilience and growth even amidst the prevailing challenges in the external environment. Our performance in the first quarter is certainly quite positive, as indicated by the substantial improvements in topline performance, and by other key performance indicators that were maintained well above industry averages. ”
Impairment charges during the quarter stood at Rs. 68.6 million which is significantly lower than the peers due to the stringent underwriting and credit risk management strategies adopted by the Company. A concerted focus on efficiency enabled LB Finance to maintain its operating costs under control, leading to an operating profit of Rs. 1.7 billion, r eflecting a 5% YoY increase.
The value of the Company’s total assets as at 30 June 2017 stood at Rs. 108.6 billion.