Finance Growth

May 23, 2011 (LBO) – Sri Lanka’s LB Finance said net profits for the March 2011 grew 83 percent to 391 million rupees from a year earlier, with strong growth in lending during the past year and a steep increase in other income, interim accounts showed.

Its government securities portfolio rose modestly to 1.6 billion rupees from 1.1 billion a year earlier. Funding largely came from deposits from non-bank customers, which rose to 19.6 billion rupees from 12.4 billion a year earlier.

The firm’s net assets grew to 2.6 billion rupees by March 2011 from 1.7 billion rupees a year earlier. Amid strong loan growth the firm said its total capital to risk weighted asset ratio fell to 14.2 percent from 17.3 percent.

It is reporting return on equity of 39.04 percent up from 32.2 percent in the year to March 2010 and return on assets of 3.64 percent, up from 3.2 percent.

The firm is 51 percent owned by Vallible One Limited, a firm controlled by entrepreneur Dhammika Perera, which is expected to go public later this year. Perera also owns another 20.3 percent in his personal capacity.

The firm reported earnings of 5.65 rupees for the quarter. In the 12 months to March LB Finance said net profits rose 104 percent to 1,020 billion rupees, givi