Overcoming the crisis of panic withdrawal of deposits during the beginning of 2009, LB Finance PLC recorded a Rs 500 million profit after tax during the financial year ended March 31, 2010, up 39 % from the corresponding period in 2009.
LB Finance's net profit before tax was Rs 878 million recording an increase of 58 % compared to 2009. Gross income of the company was Rs 4.13 billion, up 15.39 % from the earlier year.
In his annual review, LB Finance Chairman Bertram Amarasekera said the company had invested funds in liquid and stable investments unlike other finance companies which had to face liquidity risks by investing significantly in real estate and they failed to dispose their assets expeditiously.
The company will continue to lend to micro entrepreneurs who have built their source of revenue through three wheelers and tractors. They are considered as essential individuals in the national development, he said.
Managing Director of the company Sumith Adhihetty noted that LB’s deposit base has been increased by 31% from Rs.9.5 billion in 2008/09 to Rs.12.4 billion in 2009/10 mainly due to re-assured investor-confidence, and the maintenance of a healthy cash flow throughout the financial year.