LB Finance's major loan impairment came down last year in the gold loan business due to the gold price slash. This year with the rise in gold prices, low bank interest rates and high GDP growth, its position has improved and is expected to improve in the coming year, Research Manager First Capital Research Dimantha Mathew told the Daily News Business.
LB Finance and Vallibel
Chairman Dhammika Perera
At present there are 58 financial companies in the country. Under the Central Bank of Sri Lanka ruling the number is to be reduced to 20 financial entities as part of the consolidation programme.
Mathew said that these two entities are looking at the option of merging with Vallibel Finance Plc. However, Vallibel Finance is owned by Vallibel investment. The entities high performance it has the largest deposit base out of all the finance companies with a deposit base of Rs 46 billion in financial year 2014 and to Rs 51 billion in next year, he said. Mathew also said that total asset base of the entity was Rs 60 billion in financial year 2014, while its asset base to reach Rs 69 billion next year with these new development in the company.
Further the company's current profitability has topped Rs 2 billion and it will increase 49 percent growth or Rs 2.3 billion for the financial year 2016.
LB Finance was incorporated in May 1971 as a private limited liability company and subsequently converted to a public limited liability company in 1982. The Company was listed on the Colombo Stock Exchange in 1998 and was re-registered in June 2008 under the new Companies Act No. 7 of 2007.
At the beginning, the majority shareholding was held by Lewis Brown and Company Limited. In 1994, Vanik Incorporation Limited acquired the controlling interest of the Company. Dhammika Perera,took over the company in 2003 and turned it around to be the vibrant and leading finance company that it is today.
LBF is a company in the Group of Vallibel One which is a diversified holding Company with strategic investments in financial services, tile and sanitary ware manufacturing and leisure.
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