Monday 29 August 2016

LB Finance declares final dividends in excess of Rs 1 bn

LB Finance PLC declared a first and final dividend of Rs. 7.50 per share (par value of Rs 5.00) to the shareholders for the financial year 2015/16. This is an increase of 50% from the previous year, with a total dividend declaration exceeding Rs. 1 Billion.

This is the highest dividend paid in the company’s history and stands as a testament to the company’s attitude towards providing the highest possible return to the shareholder. Financial year 2015/16 was one of the most successful years in history for LB Finance PLC with a staggering profit after tax of Rs. 3.7 Billion. This was a 70% growth from the Rs. 2.1 Billion achieved in the previous financial year.

During the financial year 2015/16, all key indicators were on the up with Net Interest Income rising to Rs. 8.6 billion, an increase of 12% over the previous year’s Rs. 7.7 Billion. The Total Operating Income grew to Rs. 9.8 Billion compared to 8.8 Billion recorded over the corresponding period, an increase of 12%. Net operating Income rose by 39% to Rs 9.4 billion compared to Rs 6.8 Billion recorded previous year.

A notable reduction in expenses came through reduced impairment charges which recorded a 79% reduction to Rs. 382.4 Million.

Total Assets amassed to Rs 84.5 Billion as at the end of the financial year 2015/16, an increase of 25% over the previous year’s figure of Rs 67.5 Billion. Total Loans and Advances grew by 28% to Rs 71.5 Billion as the company continued to focus on core business activities with 95.95% of the Total Assets being Interest Earning Assets.

“Despite the challenges posed by subdued economic growth and volatile market conditions, the company managed to thrive in the Non-Banking Financial Industry and achieve results well within shareholders’ expectations, owing to our sound business model. Thus we managed to declare a total dividend in excess of Rs. 1 Billion to our shareholders,” says Sumith Adhihetty Managing Director.
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