LB Finance : Interim Financial Statements 30th September 2022

F O R T H E Y E A R E N D E D S E P T E M B E R 3 0 , 2 0 2 2

LB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

Period ended 30 September 2022			COMPANY
	FOR THE 3 MONTHS ENDED	FOR THE 6 MONTHS ENDED
	30.09.2022	30.09.2021	Change	30.09.2022	30.09.2021	Change
	Rs.('000)	Rs.('000)	%	Rs.('000)	Rs.('000)	%
Income	10,387,022	7,114,937	46	18,911,838	13,634,323	39
Interest Income	9,539,093	6,535,601	46	17,278,068	12,617,901	37
Less : Interest Expenses	5,046,984	2,084,304	>100	8,129,415	4,276,853	90
Net Interest Income	4,492,109	4,451,297	1	9,148,653	8,341,048	10
Fee and Commission Income	747,088	541,459	38	1,503,029	943,925	59
Net Trading Income	6,304	154	>100	2,544	(2,583)	>100
Other Operating Income	94,537	37,723	>100	128,197	75,080	71
Total Operating Income	5,340,038	5,030,633	6	10,782,423	9,357,470	15
Less : Impairment Charges and Other Losses	247,717	166,496	49	438,714	760,450	(42)
Net Operating Income	5,092,321	4,864,137	5	10,343,709	8,597,020	20
Less : Operating Expenses
Personnel Expenses	880,132	784,335	12	1,749,441	1,547,595	13
Depreciation of Property, Plant and Equipment	199,705	200,920	(1)	407,243	380,982	7
Amortisation of Intangible Assets	2,035	2,894	(30)	4,293	6,423	(33)
Other Operating Expenses	630,659	472,163	34	1,261,179	1,002,817	26
Total Operating Expenses	1,712,531	1,460,312	17	3,422,156	2,937,817	16
Operating Profit before Tax on Financial Services
3,379,790	3,403,825	(1)	6,921,553	5,659,203	22
Less : Tax on Financial Services	598,294	503,661	19	1,212,373	871,636	39
Profit before Taxation	2,781,496	2,900,164	(4)	5,709,180	4,787,567	19
Less : Income Tax Expense	815,940	830,265	(2)	1,671,942	1,374,779	22
Profit for the Period	1,965,556	2,069,899	(5)	4,037,238	3,412,788	18
Basic Earnings per Share (Rs.)
3.55	3.74	(5)	7.29	6.16	18
Other Comprehensive Income
Other Comprehensive Income that will never be Reclassified to Income
Statement
Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through
Other Comprehensive Income	38,572	9,182	>100	23,914	(4,223)	>100
Net Other Comprehensive Income that will never be Reclassified to
Income Statement	38,572	9,182	>100	23,914	(4,223)	>100
Other Comprehensive Income for the Period, Net of Tax
38,572	9,182	>100	23,914	(4,223)	>100
Total Comprehensive Income for the Period, Net of Tax
2,004,128	2,079,081	(4)	4,061,152	3,408,565	19

LB FINANCE PLC

STATEMENT OF COMPREHENSIVE INCOME

Period ended 30 September 2022

Income

Interest Income

Less : Interest Expenses

Net Interest Income

Fee and Commission Income

Net Trading Income

Other Operating Income

Total Operating Income

Less : Impairment Charges and Other Losses

Net Operating Income

Less : Operating Expenses

Personnel Expenses

Depreciation of Property, Plant and Equipment

Amortisation of Intangible Assets

Other Operating Expenses

Total Operating Expenses

Operating Profit before Tax on Financial Services

Less : Tax on Financial Services

Profit before Taxation

Less : Income Tax Expense

Profit for the Period

Profit Attributable to:

Equity Holders of the Company

Non-Controlling Interest

Profit for the Period

Basic Earnings per Share (Rs.)

Other Comprehensive Income

Other Comprehensive Income that will be Reclassified to Income Statement

Net Gains/(Losses) from Translating the Financial Statements of the Foreign Operations

Net Other Comprehensive Income that will be Reclassified to Income Statement

Other Comprehensive Income that will never be Reclassified to Income Statement Net Gains/(Losses) on Investment in Equity Instruments - Fair Value Through Other Comprehensive Income

Net Other Comprehensive Income that will never be Reclassified to Income Statement

Other Comprehensive Income for the Period, Net of Tax

Total Comprehensive Income for the Period, Net of Tax

Attributable to:

Equity Holders of the Company

Non-Controlling Interest

Total Comprehensive Income for the Period, Net of Tax

GROUP

FOR THE 3 MONTHS ENDED	FOR THE 6 MONTHS ENDED
30.09.2022	30.09.2021	Change	30.09.2022	30.09.2021	Change
Rs.('000)	Rs.('000)	%	Rs.('000)	Rs.('000)	%
10,478,645	7,124,108	47	19,081,641	13,657,203	40
9,622,441	6,548,508	47	17,432,701	12,645,727	38
5,062,136	2,088,759	>100	8,155,396	4,285,156	90
4,560,305	4,459,749	2	9,277,305	8,360,571	11
754,446	541,649	39	1,515,932	945,027	60
6,304	154	>100	2,544	(2,583)	>100
95,454	33,797	>100	130,464	69,032	89
5,416,509	5,035,349	8	10,926,245	9,372,047	17
228,269	126,381	81	404,113	702,942	(43)
5,188,240	4,908,968	6	10,522,132	8,669,105	21
913,247	794,615	15	1,815,578	1,569,710	16
204,070	201,463	1	417,065	382,093	9
3,313	3,664	(10)	6,878	8,017	(14)
657,066	477,948	37	1,309,847	1,015,749	29
1,777,696	1,477,690	20	3,549,368	2,975,569	19
3,410,544	3,431,278	(1)	6,972,764	5,693,536	22
599,638	503,661	19	1,215,038	871,636	39
2,810,906	2,927,617	(4)	5,757,726	4,821,900	19
819,859	828,708	(1)	1,679,859	1,371,190	23
1,991,047	2,098,909	(5)	4,077,867	3,450,710	18
1,992,581	2,098,909	(5)	4,081,960	3,450,710	18
(1,534)	-	(100)	(4,093)	-	(100)
1,991,047	2,098,909	(5)	4,077,867	3,450,710	18
3.59	3.79	(5)	7.36	6.23	18

(110,063)	(81,979)	(34)	16,082	(184,361)	>100
(110,063)	(81,979)	(34)	16,082	(184,361)	>100
38,572	9,182	>100	23,914	(4,223)	>100
38,572	9,182	>100	23,914	(4,224)	>100
(71,491)	(72,797)	(2)	39,996	(188,584)	>100
1,919,556	2,026,112	(5)	4,117,863	3,262,126	26
1,921,090	2,026,112	(5)	4,121,956	3,262,126	26
(1,534)	-	(100)	(4,093)	-	(100)
1,919,556	2,026,112	(5)	4,117,863	3,262,126	26

LB FINANCE PLC

STATEMENT OF FINANCIAL POSITION

As at 30 September 2022	Company	Group
		Audited			Audited
	30.09.2022	31.03.2022	30.09.2022		31.03.2022
	Rs.('000)	Rs.('000)	Rs.('000)		Rs.('000)
Assets
Cash and Cash Equivalents	6,313,830	14,458,986	6,406,285		14,634,136
Financial Assets Recognised Through Profit or Loss - Measured at Fair
Value	15,752	13,208	15,752		13,208
Financial Assets at Amortised Cost - Loans and Receivables	107,528,012	92,837,601	108,621,624		93,897,204
Financial Assets at Amortised Cost - Lease Rentals Receivable and Stock
out on Hire	37,048,400	41,558,002	37,116,566		41,640,197
Financial Assets Measured at Fair Value Through Other Comprehensive
Income	109,940	86,102	109,942		86,104
Other Financial Assets	13,999,273	5,598,624	14,200,605		5,655,767
Other Non Financial Assets	603,070	454,711	632,883		500,581
Investment in Subsidiary	921,998	921,162	-		-
Property, Plant and Equipment and Right-of-Use Assets	8,499,623	8,421,741	8,536,626		8,448,930
Investment Properties	-	-	71,150		71,150
Intangible Assets	10,583	14,875	125,093		131,000
Total Assets	175,050,481	164,365,012	175,836,526		165,078,277
Liabilities
Due to Banks	26,527,662	26,858,737	26,531,883		26,861,944
Financial Liabilities at Amortised Cost - Due to Depositors	100,541,867	89,143,982	100,879,049		89,478,506
Debt Instruments Issued and Other Borrowed Funds	8,402,045	8,564,617	8,402,045		8,564,617
Other Financial Liabilities	3,220,951	3,305,112	3,264,858		3,343,419
Other Non Financial Liabilities	1,270,104	1,134,771	1,318,298		1,182,279
Current Tax Liabilities	962,460	1,882,242	965,105		1,875,082
Deferred Tax Liabilities	111,486	111,486	111,486		111,486
Post Employment Benefit Liability	333,986	316,973	337,543		323,833
Total Liabilities	141,370,561	131,317,920	141,810,267		131,741,166
Equity
Stated Capital	838,282	838,282	838,282		838,282
Reserves	8,264,434	8,038,658	8,549,154		8,307,296
Retained Earnings	24,577,204	24,170,152	24,537,618		24,085,844
Total Equity Attributable to Equity Holders of the Company	33,679,920	33,047,092	33,925,054		33,231,422
Non Controlling Interest	-	-	101,205		105,689
Total Equity	33,679,920	33,047,092	34,026,259		33,337,111
Total Liabilities and Equity	175,050,481	164,365,012	175,836,526		165,078,277
Net Asset Value per Share (Rs.)	60.79	59.65	61.23		59.98
Commitments and Contingencies	2,633,454	1,694,463	2,633,454		1,694,463

The information contained in these statements have been extracted from the unaudited Financial Statements unless indicated as "Audited".

CERTIFICATION:

These Financial Statements are in compliance with the requirements of the Companies Act No. 07 of 2007.

(Sgd.)

Malith Hewage

Chief Financial Officer

The Board of Directors is responsible for the preparation and presentation of these Financial Statements.

Signed for and on behalf of the Board of Directors by,

(Sgd.)	(Sgd.)
J A S Sumith Adhihetty	Mrs. Yogadinusha Bhaskaran
Managing Director	Director
19 October 2022
Colombo

LB FINANCE PLC

STATEMENT OF CHANGES IN EQUITY - COMPANY

	Retained	Statutory	Fair Value
Stated Capital	Earnings	Reserve	Reserve	Total Equity
Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)

Balance as at 01 April 2021 (Audited)				838,282	19,754,900	7,683,689	(87,583)	28,189,288
Net Profit for the Period				-	3,412,788	-	-	3,412,788
Other Comprehensive Income, Net of Tax				-	-	-	(4,223)	(4,223)
Transfers During the Period				-	(682,558)	682,558	-	-
Final Dividend for 2020/21				-	(2,216,229)	-	-	(2,216,229)
Balance as at 30 September 2021				838,282	20,268,901	8,366,247	(91,806)	29,381,624
Balance as at 01 April 2022 (Audited)				838,282	24,170,152	8,116,782	(78,124)	33,047,092
Surcharge Tax				-	(2,320,210)	-	-	(2,320,210)
Balance After Surcharge Tax				838,282	21,849,942	8,116,782	(78,124)	30,726,882
Net Profit for the Period				-	4,037,238	-	-	4,037,238
Other Comprehensive Income, Net of Tax				-	-	-	23,914	23,914
Transfers During the Period				-	(201,862)	201,862	-	-
Final Dividend for 2021/22				-	(1,108,114)	-	-	(1,108,114)
Balance as at 30 September 2022				838,282	24,577,204	8,318,644	(54,210)	33,679,920
STATEMENT OF CHANGES IN EQUITY - GROUP
				Foreign		Total Equity
				Currency		Attributable to
		Retained	Statutory	Translation	Fair Value	Equity Holders	Non-Controlling
	Stated Capital	Earnings	Reserve	Reserve	Reserve	of the Company	Interest	Total Equity
	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)	Rs.('000)
Balance as at 01 April 2021 (Audited)	838,282	19,801,953	7,683,689	150,901	(87,583)	28,387,242	-	28,387,242
Net Profit for the Period	-	3,450,710	-	-	-	3,450,710	-	3,450,710
Other Comprehensive Income, Net of Tax	-	-	-	(184,361)	(4,223)	(188,584)	-	(188,584)
Transfers During the Period	-	(682,558)	682,558	-	-	-	-	-
Final Dividend for 2020/21	-	(2,216,229)	-	-	-	(2,216,229)	-	(2,216,229)
Balance as at 30 September 2021	838,282	20,353,876	8,366,247	(33,460)	(91,806)	29,433,139	-	29,433,139
Balance as at 01 April 2022 (Audited)	838,282	24,085,844	8,116,782	268,638	(78,124)	33,231,422	105,689	33,337,111	#
Surcharge Tax	-	(2,320,210)	-	-	-	(2,320,210)	-	(2,320,210)
Balance After Surcharge Tax	838,282	21,765,634	8,116,782	268,638	(78,124)	30,911,212	105,689	31,016,901
Net Profit for the Period	-	4,081,960	-	-	-	4,081,960	(4,093)	4,077,867
Other Comprehensive Income, Net of Tax	-	-	-	16,082	23,914	39,996	-	39,996
Transfers During the Period	-	(201,862)	201,862	-	-	-	-	-
Disposal of Shares	-	-	-	-	-	-	(391)	(391)
Final Dividend for 2021/22	-	(1,108,114)	-	-	-	(1,108,114)	-	(1,108,114)
Balance as at 30 September 2022	838,282	24,537,618	8,318,644	284,720	(54,210)	33,925,054	101,205	34,026,259	#