LB Finance PAT up 24% to Rs. 8.9bn

LB Finance PLC for the nine months ended 31 December 2025 recorded a 24 percent year-on-year increase in Profit After Tax (PAT) to Rs. 8.93 billion, underpinned by sustained income growth and a sound financial position.

The company’s total assets increased to Rs. 349.4 billion as at 31 December 2025. On a consolidated basis, the Group reported a Profit After Tax of Rs. 9.04 billion, with total Group assets crossing Rs. 369 billion, driven by the growing contribution from subsidiaries.

Income for the period rose 23 percent year on year to Rs. 42.57 billion, while Total Operating Income increased by 24 percent to Rs. 27.18 billion. This strong top-line performance translated into improved profitability, with Profit Before Tax (PBT) increasing 25 percent to Rs. 14.39 billion, supported by healthy margins and effective cost management.

Earnings per Share (EPS) increased to Rs. 16.12 from Rs. 12.95 in the corresponding period last year, while Net Asset Value (NAV) per share improved to Rs. 104.45. Profitability indicators remained robust, with an annualised Return on Equity (ROE) of 21.82 percent and a Return on Assets (ROA) of 4.03 percent, reflecting the Company’s ability to scale operations while preserving financial discipline.

Public confidence in LB Finance remained strong during the period, with customer deposits increasing to Rs. 158.33 billion. Loans and receivables expanded to Rs. 282.25 billion, with balance sheet growth outpacing broader industry trends, supported by conducive market conditions and increased demand across key customer segments, while maintaining sound credit standards. LB Finance PLC continued to diversify its funding sources by securing foreign funding, supported by improved economic conditions and strengthened investor confidence. 

The Company’s capital and liquidity positions remained well above regulatory requirements. The Capital Funds to Total Deposit Liabilities Ratio stood at 36.55 percent, compared to the statutory minimum of 10 percent. Available liquid assets amounted to Rs. 31.65 billion, exceeding the regulatory requirement of Rs. 18.4 billion. The Core Capital to Risk-Weighted Assets Ratio was maintained at 19.93 percent, providing adequate headroom to support future growth.

Asset quality indicators showed further improvement despite portfolio expansion. The Gross Non-Performing Loan (NPL) ratio declined to 1.46 percent, while the Net NPL ratio stood at minus 1.29 percent, reflecting provision coverage of nearly 190 percent of the non-performing loan portfolio. Continuous cost optimization initiatives, supported by increased digital adoption, resulted in a cost to income ratio of 30 percent.

During the period, LB Finance acquired a controlling stake in Associated Motor Finance Company PLC (AMF), strengthening its presence in the leasing and vehicle financing segment.