Retail Network

Feb 11, 2010 (LBO) – Sri Lanka’s LB Finance said December quarter net profit rose 47 percent to 123 million rupees from a year ago and that it was expanding its branch network. The company said in a stock exchange filing that total income rose three percent to 1.05 billion rupees in the quarter.

Interest income rose seven percent to 996 million rupees while interest expenses fell 9.7 percent to 567 million rupees, enabling net interest income to rise 41 percent to 429 million rupees.

Other operating income almost doubled in the December quarter to 52 million rupees from the previous year.

The company’s earnings per share for the quarter were 3.56 rupees compared with 2.43 rupees the year before.

Provisioning for bad loans and fall in value of investment went up sharply to 60 million from 10 million rupees over the period.

Deposits from non-bank customers grew to 11.8 billion rupees as at December 31, 2009 from 9.6 billion in March 2009.

LB Finance’s return on equity fell to 26.42 percent as at December 31, 2009 from 29.23 percent the previous year and after-tax return on assets fell to 2.72 percent from 5.42 percent over the same period.