1 2 3 input strategic drivers challenges

L B Finance PLC | Annual Report 2020/21

Total assets

Dividend per share

Cost to income ratio

Rs. 140.57 Bn Rs. 7/-

30.56 %KEY OUTPUT

HighesteverprofitaftertaxinLBFhistory

LowestcosttoincomeratioinLBFhistory

Dynamicimpairmentmodelpoweredbymachinelearningtoimprovetheaccuracyofforecasting

FUTURE

Introducebusinessintelligentplatformsanduseofartificialintelligenceforcreditdecisions

Achievesustainablegrowth

7

8

SDG impactRelated material themes and drivers Related stakeholders and concerns

Sustainablygrowingrevenue

Deliveringappropriateshareholderreturns

Regionalexpansion

Processexcellence

Improvingsustainablebusinessperformance

Ensuringfinancialsustainability

Improvingstakeholderengagement

SPACE FOR DEVELOPMENT

Portfoliogrowthopportunitiesthroughnewbusinesslocationsandrelocationofexistingoutletsalignwithbusinessexpansionstrategy

EnhancecreditevaluationandcollectioneffortstoreducetheNPLstopreCOVID-19levels

5 APPROACHES TO MANAGING FINANCE CAPITAL OUTCOMES

Budgetarycontrolsandmonthlymanagementaccounts

BranchandproductprofitabilitythroughOracleprofitabilityandcostmanagementcloudservice

Cashflowandliquiditymanagement

Soundriskmanagement,complianceframeworkandinternalpoliciesandprocedures

6

Visitwebpageforourphilosophy,ManagementapproachesandanalysisofFinancialCapital

HOW IT ADDS VALUES Returnsgeneratedbyourbusinessenhancesourfinancialcapital,whichinturnisusedtorepayourinvestorswithdividendpaymentsandtherestretainedtoaidbusinessoperationsandgrowththroughenhancingothercapitals.

FINANCIALCAPITAL

WHAT IT INCLUDES OurFinancialCapitalincludesourmonetaryresources,whichhavebeencontributedbyourinvestorsandarebeingenhancedthroughourbusinessactivities.Ourkeysourcesoffinancialcapitalcompriseequity,debtandcustomerdepositsbesidesothersourcesoffunds.

STRATEGIC DRIVERS

Focusmoreoncorebusiness

Growexposuresprudently,alignedtoriskappetite

MaintaintheNIMatdifferentmarketconditions

Continuationofcostoptimisation

Improvedoperatingefficiencythroughprocessoptimisationandautomation

MaintainthelowestNon-performingloanratiointheindustry

Becostefficientwhileinvestingforgrowth

Deliverconsistentreturnonequity

INPUT

Shareholders’funds

Depositsbase

Otherincomesources

Longandshort-termborrowings

Earningsretainedafterdividenddistribution

CHALLENGES

Lacklustermacroeconomicconditions

Elevatedcreditriskexertedpressureonearnings

MaintainingtheNIMwhenmarketinterestratesarevolatileanduncertain

ContinuationofrevenuegeneratingactivitieswiththeCOVID-19restrictions

1 2 3

TRADE OFF

Thesoftwareandinfrastructuralinvestmentsintoourcoresystems,thatwemaketowardsachievingprocessefficiency,inturn,helpsustomaintainourlowcosttoincomeratioandquickerserviceintheformof

turnaroundtimes,whichenablesustooperatecompetitivelyinthemarket.Whilemonetaryinvestmentsinourmanufactured,intellectual,human,socialandrelationshipandnaturalcapitalsarekeytothedevelopmentofthesecapitals

inthemselves,theseinvestmentsalsotranslatetoutilisationofthecapitalstobetransformedbacktofinancialcapitalintheformofmaterialreturnstothesevariousstakeholders.

4

Fitch rating reaffirmed

NPL Paid to the government as taxes

Highest ever PAT

ROE

A- (lka) 5.36% Rs. 3.96 Bn Rs. 6.80 Bn 26.58%

CAPITAL REPORTS

FC

L B Finance PLC | Annual Report 2020/21

L B Finance PLC | Annual Report 2020/21 L B Finance PLC | Annual Report 2020/21

Despite the pandemic creating a challenging business environment underpinned by high uncertainty, L B Finance PLC navigated the year with resilience and closed it with strong business momentum, by delivering a profit after tax of Rs. 6.80 Billion which reflected 31.15% growth over the previous financial year.

InassessingthefinancialperformanceoftheGroup,managementusesarangeofKeyPerformanceIndicators(KPIs)whichfocusontheCompany’sfinancialstrength,deliveryofsustainablereturnsandcostmanagement.WebelievethattheperformancegiveninbelowKPIswhicharenotpartofSLFRSswouldprovidevaluableinformationtoourstakeholders.

TheframeworkusedintheanalysisoftheKPIsistheCAMELratingsystem.CAMELisaratingsystemthatisusedtoratebanksandfinancialinstitutionsaccordingtofivefactors.Thefivefactorsarerepresentedbytheacronym“CAMEL–CapitalAdequacy,AssetsQuality,Management’sEfficiency,EarningsandLiquidity”.

KPI Definition Its Importance and How L B Finance Performed

C CAPITAL ADEQUACY

Tier I and Tier II

Capitalrequirementsarepartoftheregulatoryframeworktoensurebanksandnon-bankingfinancialinstitutionsaresupervised.CapitalratiosexpressthecapitalasapercentageofitsRiskWeightedAssets(RWA)asdefinedbytheCentralBankofSriLanka(CBSL).Capitalrequirementsaremeasuredattwotiers,namelyTierIandTierII.

LBFinance’scapitalmanagementobjectiveistomaximisetheshareholdervaluebyprudentlymanagingthelevelandmixofitscapital.

LBFinanceTierIandTierIIcapitaladequacyratiosasattheendofthefinancialyearstoodat23.87%and25.32%respectivelycomparedtotheminimumregulatoryrequirementof7%(TierI)and11%(TierII).ThisreflectstheresilientcapitalgenerationthroughtheprofitsoftheCompany.CapitalgenerationduringtheyearwaspartiallyoffsetbytheRs.1.66Billioninterimdividendpaidduringthefinancialyear.

Tier I Ratio

23.87%2020:19.04% Tier II Ratio

25.32%2020:20.75%

A ASSETS QUALITY

Non-Performing Advances (NPA)

GrossNPAindicatestheamountofdefaultedloansgrantedbyaninstitutionbeyondadefinedperiod.ThisratioaimstoidentifyNPAasapercentageofitstotaladvances. Ontheotherhand,NetNPAratioindicatestheoutstandingamountofgrossNPA,netofprovisioningfortheNPAasapercentageofitstotaladvances.ProvisioningistherecognitionofpotentiallossesarisingfromNPA.

LBFinanceaimstopreventundueconcentrationandtail-risks(largeunexpectedlosses)bymaintainingadiversifiedcreditportfolio,client,industryandproduct-specificconcentrationsareassessedandmanagedagainstitsriskappetite.

GrossNPAratioslightlyincreasedto5.36%in2020/21from3.93%in2019/20.DeteriorationofGrossNPAratioduringtheyearwasdrivenbytheunprecedentedeconomicimpactanddisruptionfromCOVID-19.NeverthelesstheNetNPAratioinyear2020/21isonly0.10%whichreflectsthattheCompanyhasprovidedforNPAswithastrongprovisioncoveragecloseto100%.

EvenduringthelacklustermacroeconomicconditionsCompanywasabletomaintainitsrecordofNPAratiossubstantiallylowerthantheNBFIsector.

Gross NPL

5.36% 2020:3.93% Net NPL

0.10% 2020:(0.12%)

M MANAGEMENT’S EFFICIENCY

Cost to Income Ratio

Costtoincomeratioisafinancialmeasurederivedthroughoperatingexpensesdividedbytotaloperatingincome.

ThisisameasureLBFinanceusestoassesstheproductivityofthebusinessoperations.Managingthecostbaseisakeyexecutionpriorityformanagementandincludesareviewofallcategoriesofspendingandananalysisofhowwecanrunthebusinessmoreefficientlytoensurethatcostsareincreasingataslowerratethanincome. LBFinance’scosttoincomeratioimprovedto30.56%inyear2020/21comparedto33.44%inyear2019/20whichdemonstratesimprovedmanagementefficiency.

Cost to Income

30.56% 2020:33.44%

E EARNINGS

Return on Equity (ROE)

ROEiscalculatedbydividingtheprofitaftertaxfromtheaveragetotalequity.

ReturnonEquity(ROE)isthemostcommoninternalperformancemeasureofaCompany’sprofitabilityfromtheshareholder’spointofview.Thismeasureindicateshowwellthemanagementgeneratesreturnfromtheshareholder’sequity.

LBFinanceachievedROEof26.58%intheyear2020/21comparedto25.04%inthepreviousyearwhichdemonstratesLBFinance’sabilitytoexecuteitsstrategiestomaximisetheshareholderwealth.

Return on Equity

26.58% 2020:25.04%

L LIQUIDITY

Liquid Assets Ratio

Liquidassetsratioiscalculatedbydividingtheliquidassetsfromtotaldepositliabilitiesandrelevantborrowings.

CBSLrequiredminimumamountofliquidassetsremainat6%oftimedeposits,10%ofsavingsdepositsand5%ofoutstandingborrowingsexcludingsecuredborrowings.TheCompanyhasmaintaineditsliquiditylevelswellabovetherequiredliquidassetsasperCBSLRequirement.

TheCompany’soverallobjectiveistomaintaintheadequateliquiditywhilemanagingthetradeoffwiththeprofitability.TheCompany’soverallliquidassetsasapercentageoftotaldepositliabilitiesandborrowingshoveredaround16%duringtheyearended2020/21and2019/20whichindicatesthat LBFinanceisinastrongpositionintermsofitsliquidity.

Liquidity Ratio

17.89% 2020:15.65%

CAPITAL REPORTS

Financial Capital


Year ended 31 March 2021 2020 Change

Rs. ‘000 Rs. ‘000 %

Income 29,766,124 31,222,860 (5)

InterestIncome 27,457,741 29,160,292 (6)

Less:InterestExpenses 11,522,802 13,615,391 (15)

Net Interest Income 15,934,939 15,544,901 3

Non-Interest Income

FeeandCommissionIncome 2,184,947 1,941,626 13

NetTradingIncome 6,323 (2,099) >100

OtherOperatingIncome 117,113 123,041 (5)

Total Operating Income 18,243,322 17,607,469 4

Less: Impairment Charges and Other Losses 1,691,734 1,831,057 (8)

Net Operating Income 16,551,588 15,776,412 5

Less: Operating Expenses

PersonnelExpenses 2,959,823 3,005,189 (2)

DepreciationofProperty, PlantandEquipment 728,793 697,508 4

AmortisationofIntangibleAssets 16,446 15,882 4

OtherOperatingExpenses 1,870,828 2,168,986 (14)

Total Operating Expenses 5,575,890 5,887,565 (5)

Operating Profit before Tax on Financial Services 10,975,698 9,888,847 11

Less: Tax on Financial Services 1,669,323 2,278,560 (27)

Profit before Taxation 9,306,375 7,610,287 22

Less: Income Tax Expense 2,503,778 2,423,234 3

Profit for the Year 6,802,597 5,187,053 31

Net Interest Income

Definition: Interestincomerecognisedfromourlendingproductsthatweoffertoourcustomers,lessinterestexpenseonthedepositsthatourcustomersplacewithusanddebtfundingsourcefromourlenders.

Drivers:Lendingbase,NPLratio,productpricing,marketvolatility,marketinterestrates.

Non-Interest Income

Definition:Alsoknownasotherincome,consistingoffeeandcommissionincome,nettradingincomeandotheroperatingincome.

Drivers:Capitalmarketactivities,marketvolatility,otherincomerecogniseoncreditgranting.

Impairment Charges and Other losses

Definition:Expectedlossesarisingduetotheinabilityofcustomerstorepaytheirdebttotheentity.

Drivers:Customerrepaymentbehavior,lossgivendefaultrate,probabilityofdefaultrate,macroeconomicfactors,exposureatdefault.

Operating Expenses

Definition:Costsincurredtogeneratecurrentandfuturerevenues.Consistingofpersonnelexpenditure,depreciationandamortisationandotheroperatingexpenses.

Drivers:Inflation,headcount,investmentsinbranchesandITinfrastructure,generalcoststooperate,marketingandpromotionalactivities.

Taxes

Definition:Includedirecttaxessuchasincometax,debtrepaymentlevy,VATandNBTonfinancialservices.Taxisacompulsoryfinancialchargeorsomeothertypeoflevyimposedontaxpayers.

Drivers:Levelofoperationalprofitability,governmentpolicies,applicabletaxrates,allowablecreditsandexemptincome.

INCOME STATEMENT Net Interest Income

OurinterestincomewasRs.27.45Billionfortheyear2020/21comparedto Rs.29.16Billion,fortheyear2019/20,declineofRs.1.71Billionor5.84%.ThedeclinewasprimaryduetothereductionininterestratesandthemonetaryeasingprovidedtoourcustomersincompliancewiththedirectionsissuedbytheCentral

BankofSriLanka(CBSL).Moreover,declineintheinterestincomewasaffectedwiththedegrowthinourleaserentalsreceivableandstockoutonhireduetotherestrictionsimposedonimportationofmotorvehicleswhichinturndiminishedthenumberofvehicleregistrations.

Ontheotherhand,interestexpensesreducedbyRs.2.09Billionwhichwas15.37%lessthanthepreviousyear.ThiswasdrivenbythecontinuousdeclineinmaximuminterestratestobepaidinrespectofdepositsanddebtinstrumentsaspublishedbytheCBSLinlinewiththegovernmentpolicies.

2020/21 2019/20 Increase/(Decrease)

Rs. ‘000 Rs. ‘000 Rs. ‘000 Change %

InterestIncome 27,457,741 29,160,292 (1,702,551) (5.84)

InterestExpenses 11,522,802 13,615,391 (2,092,589) (15.37)

NetInterestIncome 15,934,939 15,544,901 390,038 2.51

AverageInterest-EarningAssets 131,110,968 130,007,658 1,103,310 0.85

AverageInterest-BearingLiabilities 111,671,145 113,708,200 (2,037,055) (1.79)

2020/21 2019/20 Change

% % %

InterestYieldonAverageInterestEarningAssets 20.94 22.43 (1.49)

CostofFundsonAverageInterestBearingLiabilities 10.32 11.97 (1.65)

InterestSpread 10.62 10.46 0.16

NetInterestMargin(NIM) 12.15 11.96 0.19

Motor vehicle registration

0

10,000

20,000

30,000

40,000

Apr 2

020

May

202

0

Jun

2020

Jul 2

020

Aug

2020

Sep

2020

Oct

202

0

Nov

202

0

Dec

202

0

Jan

2021

Feb

2021

Mar

202

1

(No. of vehicles)

2019/20 2020/21 Source: Central Bank of Sri Lanka

Comparison of AWPLR

0

3

6

9

12

15

Apr 2

020

May

202

0

Jun

2020

Jul 2

020

Aug

2020

Sep

2020

Oct

202

0

Nov

202

0

Dec

202

0

Jan

202 1

Feb

2021

Mar

202

1

(%)

2019/20 2020/21 Source: Central Bank of Sri Lanka

Despitethedeclineintheinterestincome,ournetinterestincomegrewby2.51%toRs.15.93Billionduetohighfrequencyofre-pricingindepositbaseasagainstloans,especiallyleaseswithlongertermtenure,impactedpositivelyonournetinterestmargin.

CAPITAL REPORTS

Financial Capital

Non Interest Income

Feesandcommissionincomegrewby12.53%toRs.2.18Billionasaresultofhighertransactionvolumesthroughloansandreceivablesparticularlythegrowthingoldloan.Further,ournettradingincomerecordedagainofRs.6.32Millionduetothefavorablemarketvolatilityofequitysecuritiesheldfortrading.ItwasalsonotedthattherewasamarginaldeclineinourotheroperatingincometoRs.117.11Millionor4.82%duringtheyear.

Non interest income

0 500 1,000 1,500 2,000 2,500

2018

2017

2019

2020

2021

(Rs. Mn)

Credit Related Fees and Commissions Service Charge


ANALYSIS OF IMPAIRMENT

CHARGES AND OTHER LOSSES

Loans and Receivables

Stage 01 Stage 02 Stage 03 Total

Lease Rentals Receivable and

Stock out on Hire

Total

Total Impairment Charges and Other Losses

Others

Rs. 550 Mn2020:Rs.100Mn

Rs. 66 Mn2020:Rs.0.6Mn

Rs. 526 Mn2020:Rs.1,012Mn

Rs. 1,142 Mn2020:Rs.1,113Mn

Rs. 143 Mn2020:(Rs.114Mn)

Rs. 693 Mn2020:(Rs.14Mn)

Rs. 1,691 Mn2020:Rs.1,831Mn

(Rs. 62 Mn)2020:(Rs.71Mn)

Rs. 1,147 Mn2020:Rs.1,865Mn

Rs. 1,753 Mn2020:Rs.1902Mn

(Rs. 153 Mn)2020:Rs.50Mn

(Rs. 87 Mn)2020:Rs.51Mn

Rs. 621 Mn2020:Rs.853Mn

Rs. 611 Mn2020:Rs.789Mn

Operating Expenses

Operatingexpensesdecreasedby5.29%toRs.5.57Billionfortheyear2020/21,duetoreductioningeneralandadministrativeexpensescomparedtothepreviousyearfollowingadisciplinedcostmanagementwithreductionsincostacrossallmajorcostcategories.

Advertisingandbusinesspromotionsincludedintheotheroperatingexpensesplummetedby55.81%intheyear2020/21comparedtoprioryearasaconsequenceofsubsidingouradvertisingandbusinesspromotion.

Moreover,theCompanymanagedtomaintainitscostperemployeewithinthebudgetedlevelsdemonstratingitsabilitytoalignwiththeCompanystrategyinunprecedenttimeframes.ItisalsonoteworthythatthecosttoincomeratiooftheCompanyimprovedby2.88%from33.44%to30.56%duringtheyearbyreportingthelowestcosttoincomeratioinLBFinancehistoryindicatingtheeffectiveandefficientcostmanagementeffortsoftheCompany.

Total operating expensesvs total operating income

0

5,000

10,000

15,000

20,000

0

10

20

30

40

(Rs. Mn) (%)

Total operating incomeTotal operating expensesCI Ratio

2017

2018

2019

2020

2021

CAPITAL REPORTS

Financial Capital

Impairment Charges and Other Losses

ImpairmentchargesandotherlosseswereRs.1.69Billionfortheyear2020/21.ThiswasprimarilydrivenbynegativeimpactsfromCOVID-19whichresultedinextrememacroeconomicdownturn.

However,themanagementoftheCompanycontinuedtoprovideoversighttothecreditmonitoring,managementandrecoveryoffinancereceivablesinmanagingcreditriskandimprovingassetqualityhelpedtoreducetheimpairmentchargesforthecurrentfinancialyearcomparedtothepreviousfinancialyear.

Inadditionthedecreaseofimpairmentchargesandotherlossesof7.61%wasalsocontributedbytheadditionalimpairmentprovisionsintheyear2019/20asmanagementoverlaytoflattenthehighamplitudeofthefutureimpairmentwiththeexpectedadversemacroeconomicconditionduetoCOVID-19crisis.Further,thereductioninimpairmentchargesandotherlosseswerecontributedbytheoverallreductioninthelendingbasedueto,

Theslowergrowththanexpectedinthelendingvolumes

Pre-terminationofcreditfacilitiesresultingfromtheimprovedvehiclepricesinthemarket

Inherentearlyterminationsthatarewitnessedwhenthemarketinterestratesarereducing

Itshouldbetakenintoconsiderationthatthereductionintheimpairmentchargesandotherlosses,alsodemonstratestheassetqualityoftheCompanywhichwasevidentwiththeoneofthelowestNPAratiosinNBFIsector.

Taxes

LBFinancetaxexpenseconsistsoftwomainelementsnamelytaxesonfinancialservicesandincometax.

TaxonfinancialservicesreducedtoRs.1.66Billion,whichwas26.74%lessthantheprioryear.ThiswasmainlyduetotaxreformstoabolishthedebtrepaymentlevyandNBTonfinancialserviceswitheffectfrom1January2020.

Financial Highlights 2020/21 2019/20 2018/19

Rs.’000 Rs.’000 Rs.’000

ProfitbeforeTaxonFinancialServices 10,975,698 9,888,847 9,756,268TaxonFinancialServices 1,669,323 2,278,560 2,015,619ProfitafterTaxonFinancialServices 9,306,375 7,610,287 7,740,649CurrentIncomeTax(A) 2,913,969 2,683,698 2,441,729DeferredTaxationCharge/(Reversal) -Incomestatement(B) (410,191) (260,464) 244,260

TaxationCharge-IncomeStatementC=(A+B) 2,503,778 2,423,234 2,685,989DeferredTaxationCharge/(Reversal) -OtherComprehensiveIncome(D) 9,684 (11,678) 6,712

TotalTaxExpensefortheFinancialYearE=(C+D) 2,513,462 2,411,556 2,692,701

EffectiveTaxRate(TaxationCharge/Profit afterTaxonFinancialServices) 27.01% 31.69% 34.79%

EffectiveTaxRate(TaxationCharge/ProfitbeforeTaxonFinancialServices) 22.90% 24.39% 27.60%

TheeffectiveincometaxrateoftheCompanydecreasedto27.01%duringtheyearfrom31.69%reportedinthepreviousyear.Thiswasmainlyduetofollowingdownwardtaxadjustmentseffectedduringthelastquarterof2019/20.

Corporatetaxraterevisionfrom28%to24%hadafavorableimpacttothereductionineffectiveincometaxrate.

Decreaseintaxesonfinancialservicesduetotheabolitionofthedebtrepaymentlevy(effectivefrom1January2020),nationbuildingtax(effectivefrom1December2019)enabledtheCompanytopostanincreaseintheoperatingprofitaftertaxonfinancialservices.

TheCompanyasaresponsibletaxpayerhasataxstrategythatoutlinetheframeworkbywhichtheCompany’staxobligationsaremetfromanoperationalandriskmanagementperspective.Weadoptanoverarchingriskphilosophyinrelationtotaxmatterswhichaimstomitigateanyadverseorunexpectedfinancialconsequencesandprotectourreputation.TotaldirecttaxpaidfromtheCompanyamountedtoRs.3.54BillioncomparedtotheRs.5.60BillionintheprioryeardownbyRs.2.06Billionduetotheabovesaidtaxreformsintroduced.

Similarly,indirecttaxcollectedfromValueAddedTax(VAT),WithholdingTax(WHT),PAYEandstampdutyamountedtoRs.425.60MillioncomparedtotheRs.1,223.56Millionpaidintheprioryearwhichrepresentsa65.22%reductionduetothetaxreformsintroduced.

Direct taxes

0

500

1,000

1,500

2,000

2,500

3,000

2020 2021

(Rs. Mn)

Income TaxValue Added Tax on Financial ServicesCrop Insurance Levy

Indirect taxes (%)

Value Added TaxNation Building TaxStamp DutyWithholding Tax on Dividend and InterestPAYE Tax/Advanced Personal Income Tax

37.97

20.92

2.57

26.56

8.38

41.57

42.22

0.5

19.31

2021

2020

Rs. 1.7 Bn Rs. 1.1 Bn

Profit After Tax

DespitethedisruptionsonoperationscausedbyCOVID-19pandemictheCompanywasabletodeliveraresilientperformance.TheCompanyreportedprofitaftertaxofRs.6.80BillionwhichisRs.1.62Billionor31.15%higherthanthepreviousyear.Theriseinprofitprimarilyreflectingtheimpactoftheincreaseinnetinterestincome,effectivecreditcostmanagementresultinginmanageableimpairmentcharges,reductioninoperatingexpensesandthesavingsresultingfromthetaxregulatoryreforms.

PROFIT AFTER TAX For the year ended 31 March 2021

PROFIT BEFORE TAX ON FINANCIAL SERVICES For the year ended 31 March 2021

31% 11%

FY 21 Rs. 6.8 Bn

FY 20 Rs. 5.1 Bn

FY 21 Rs. 10.9 Bn

FY 20 Rs. 9.8 Bn


As at 31 March 2021 2020 Change

Rs. ‘000 Rs. ‘000 %

Assets

Cash and Cash Equivalents 6,187,300 6,162,637 0

FinancialAssetsRecognisedThroughProfitorLoss-MeasuredatFairValue 10,862 4,648 >100

Financial Assets at Amortised Cost - Loans and Receivables 66,778,188 58,239,254 15

Financial Assets at Amortised Cost - Lease Rentals Receivable and Stock out on Hire 47,359,635 60,626,670 (22)

FinancialAssetsMeasuredatFairValueThroughOtherComprehensiveIncome 77,789 59,141 32

Other Financial Assets 10,453,903 9,119,681 15

OtherNonFinancialAssets 920,406 967,469 (5)

InvestmentinSubsidiary 521,162 521,162 -

Property,PlantandEquipmentand Right-of-UseAssets 8,241,259 8,221,248 0

IntangibleAssets 26,021 41,809 (38)

Total Assets 140,576,525 143,963,719 (2)

Liabilities

Due to Banks 16,467,179 22,771,085 (28)

Financial Liabilities at Amortised Cost - Due to Depositors 85,860,070 89,256,435 (4)

Debt Instruments Issued and Other Borrowed Funds 3,113,916 3,111,186 0

OtherFinancialLiabilities 3,043,526 2,766,410 10

OtherNonFinancialLiabilities 1,028,054 909,266 13

CurrentTaxLiabilities 1,872,154 766,752 >100

DeferredTaxLiabilities 637,073 1,037,580 (39)

PostEmploymentBenefitLiability 365,265 345,456 6

Total Liabilities 112,387,237 120,964,170 (7)

Equity

StatedCapital 838,282 838,282 -

Reserves 7,596,106 6,216,939 22

RetainedEarnings 19,754,900 15,944,328 24

TotalEquityAttributabletoEquityHoldersoftheCompany 28,189,288 22,999,549 23

Non-ControllingInterest - - -

Total Equity 28,189,288 22,999,549 23

Total Liabilities and Equity 140,576,525 143,963,719 (2)

Cash and Cash Equivalents

Definition:ValueofaCompany’sassetsthatarecashorcanbeconvertedintocashimmediately.Includescashinhand,bankbalancesandtreasurybills/bondsrepurchaseagreements.

Drivers:Liquidityrequirements(CompanyandCBSL),creditgranting,recoveriesandfundingfromdepositsandothersources.

Lending Portfolio

Definition:MaininterestearningassetstotheCompanywhichconsistsofloansandreceivables,leaserentalsreceivableandstockoutonhire.

Drivers:Marketinterestrates,Companiesriskappetite,marketcompetition,lendingvolumes,pre-terminationsandrepayments.

Other Financial Assets

Definition:Consistsoftreasurybillsrepurchaseagreements,investmentinfixeddeposits,insurancepremiumreceivableandsundrydebtors.

Drivers:Liquidityrequirements,marketinterestrates,excessfunds.

Due to Banks

Definition:Consistsoftheexternalborrowingsfrombanksincludingoverdrafts,securitisations,termloansandsyndications.

Drivers:Marketgrowth,fundingrequirements,marketinterestrates,repayments,gearingratio.

Financial Liabilities at Amortised Cost - Due to Depositors

Definition:Compriseofinterestbearingsavingsdepositsandtermdeposits.

Drivers:Fundingrequirements,marketgrowth,marketinterestrates,depositrenewalratio.

Debt Instruments Issued and Other Borrowed Funds

Definition:Consistoflistedunsecureddebentures.

Drivers:Fundingrequirements,marketinterestrates,Companystability,TierIIcapitaladequacyrequirements.

Total Equity

Definition:Totalequity equals total assetsminus total liabilitiesandconsistsoftheamountofmoneyinvestorshaveinvestedintheCompanyandtheearningsaCompanyhasaccumulatedfromitsoperations.

Drivers:Profits,statutoryrequirementonreserves,dividendpayout,capitaladequacyrequirementsandshareholderexpectations.

STATEMENT OF FINANCIAL POSITION Total Assets Overview

Asat31March2021,theassetsof LBFinancebalancesheetamounted toRs.140.57Billion,down2.35%from 31March2020(Rs.143.96Billion).TheCompany’sassetsincludecashandcashequivalents,loansandreceivables,leaserentalsreceivableandstockoutonhireandotherfinancialassetswhichtogetheraccountfor93.09%oftotalassetsasat 31March2021(93.23%at31March2020).TotalinterestearningassetsoftheCompanyaccountedfor91.94%asat 31March2021comparedto92.37%asat31March2020.

Total assets

0

20

40

60

80

100

2020

2021

(%)

2021Rs.140 Bn

2020Rs. 143 Bn

Interest Earning AssetsNon Interest Earning Assets

92.3

7

91.9

48.

06

7.63

Cash and Cash Equivalents

CashandcashequivalentsincludecashandbankbalancesofRs.2.78Billionasat31March2021comparedtoRs.4.62Billionasat31March2020.TherepurchaseagreementsincludedincashandcashequivalentsamountedtoRs.3.39Billion asopposedtoRs.1.54Billionasat 31March2020.

Loans and Receivables

Loansandreceivablesamountedto Rs.66.77Billion(netofimpairment)asat31March2021comparedRs.58.23Billionasat31March2020,increasingby14.66%.Thisisduetotheincreaseingoldloanandvehicleloansby18.18%and40.90%respectivelycomparedtotheprioryear.Moreover,theincreaseinloansandreceivablesarepartiallyoffsetwiththedecreaseinmortgageloansandtermloansby15.08%and1.96%respectively.ImpairmentprovisionswereRs.3.37Billionasat31March2021comparedtoRs.2.34Billionasat31March2020duetoongoingmacroeconomicuncertaintyandincreaseinourloansandreceivables.

Stage analysis of loansand receivables (%)

Stage 01 Stage 02 Stage 03

83.5982.92

10.07

7.018.44

7.972021

2020

Lease Rentals Receivable and Stock out on Hire

LeaserentalsreceivableandstockoutonhiredecreasedbyRs.13.26BilliontoRs.47.35Billionfrom60.62Billion.ThiscontractionwasmainlyimpactedbyCOVID-19outbreaktogetherwiththerestrictionsimposedontheimportationofvehicleswhicheventuallyresultedashrinkageinnumberofvehicleregistrations.Allowancesforimpairmentcharges(ECL)increasedfromRs.2.90BilliontoRs.3.16BillionduetothenegativeimpactcausebytheCOVID-19pandemicdespitethedeclineintheleaserentalsreceivableandstockoutonhire.

CAPITAL REPORTS

Financial Capital

Rs. 47,359 Mn

Rs. 253 Mn

LEASE RENTALS RECEIVABLE AND STOCK OUT ON HIRE As at 31 March 2021

% change 2020/21 -22%

Impairment Provision

9%

Rs. 66,778 Mn

Rs. 1,021 Mn

LOANS AND RECEIVABLES As at 31 March 2021

% change 2020/21 15%

43%

Impairment Provision

(%)

62.5521.81

15.64

34.61

14.27

51.12

2021

2020

Stage analysis oflease rentalsreceivable andstock out on hire

Stage 01 Stage 02 Stage 03

FY 21 Rs. 3,370 Mn

FY 20 Rs. 2,349 Mn

FY 21 Rs. 3,161 Mn

FY 20 Rs. 2,908 Mn


Credit Quality

CreditqualityoftheCompanywasaffectedwiththedisruptiontoeconomicactivitieswhichhadanadverseimpactonincreaseinourimpairmentprovisionbyRs.1.28BillionfromRs.5.25Billionasat31March2020toRs.6.53Billionasat31March2021.

Weidentifycounterpartiesthat,demonstratethelikelihoodofdefaultsandmadeprovisionsbasedontheECLmodeloftheCompany,whichfactorsintheforwardeconomicoutlook.LBFinanceusesadynamicimpairmentmodelpoweredbymachinelearningtechniquesdevelopedwithColomboScienceandTechnologyCELLofUniversityofColombotoimprovetheaccuracyofforecastingwhichensuresthattheCompanyadequatelyprovidedforthedelinquentfacilities.

Credit Quality of Assets Gross Carrying Value Allowance for Impairment

Allowance by Categories

Defaulted Exposures

Non- Defaulted Exposures

Individual Collective

Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000 Rs. ’000

As at 31 March 2021LoansandReceivables 5,590,002 64,558,907 3,370,721 2,339,239 1,031,482 LeaseRentalsReceivableandStockoutonHire 7,903,567 42,617,339 3,161,271 2,487,333 673,938 Total 13,493,569 107,176,246 6,531,992 4,826,572 1,705,420

11.18% 88.82%

As at 31 March 2020LoansandReceivables 4,249,210 56,339,350 2,349,306 1,915,499 433,807LeaseRentalsReceivableandStockoutonHire 9,069,309 54,465,394 2,908,033 2,223,973 684,060Total 13,318,519 110,804,746 5,257,339 4,139,472 1,117,867

10.73% 89.27%

Financial Highlights 2021 2020 2019

Rs. ‘000 Rs. ‘000 Rs. ‘000

GrossLoans(WithUnearnedIncome) 134,801,208 143,625,411 140,149,944UnearnedIncome 14,131,393 19,502,148 22,950,300GrossLoans 120,669,815 124,123,263 117,199,644GrossNon-PerformingLoans(WithUnearnedIncome) 7,232,046 5,648,464 3,773,333UnearnedIncomeofNon-PerformingLoans 575,528 536,198 276,867GrossNon-PerformingLoans 6,656,518 5,112,266 3,496,466SLFRS09ECLProvision 6,531,992 5,257,339 3,746,911RegulatoryProvision 5,194,045 3,897,772 2,642,510Excess/(Shortfall)ECLProvisionComparedtoRegulatoryProvision 1,337,947 1,359,567 1,104,401

ECLProvisionasaPercentageofGrossLoans 5.41% 4.24% 3.20%ECLProvisionasaPercentageofNon-PerformingLoans 98.13% 102.84% 107.16%

RegulatoryProvisionasaPercentageofGrossLoans 4.30% 3.14% 2.25%RegulatoryProvisionasaPercentageofNon-PerformingLoans 78.03% 76.24% 75.58%NPL:GrossLoans 5.52% 4.12% 2.98%NPL:GrossLoans-UnearnedIncomeBasis 5.36% 3.93% 2.69%NetNon-PerformingLoans 0.10% -0.12% -0.21%

TheregulatoryprovisionsaremadeonloansandadvancesundertheDirectionNo03of2006on“Provisionforbadanddoubtfuldebts”(andsubsequentamendmentsthereof)issuedbytheCBSL.

TheECLasperSLFRS09-FinancialInstrumentsisRs.1,337.94Millionexcessasattheendof31March2021(Rs.1,359.56Millionasat 31March2020)overtheregulatoryprovisionrequiredasperthesaiddirectionsissuedbytheCentralBankofSriLanka.

Other Financial Assets

Otherfinancialassetsmainlycomposedoftreasurybillsrepurchasedagreementsandinvestmentsinfixeddepositstomeetstatutoryliquidityrequirements.Otherfinancialassetsincreasedby14.63%toRs.10.45BillionfromRs.9.11Billion.ThiswasdrivenbytheincreaseininvestmentsinfixeddepositsfromRs.3.42BilliontoRs.6.50BillionwhichovershadowedthedeclineintreasurybillrepurchasedagreementsbyRs.1.92Billionasat 31March2021.

Other financial assets (%)

Investment in Fixed DepositsTreasury Bills Repurchase AgreementsOthers

62.21

33.84

3.95

2.52 59.90

37.58

2020

2021

Liability Overview

TheCompany’sliabilitiesamountedto Rs.112.38Billionasat31March2021down7.09%fromRs.120.96Billionasat31March2020.TheCompany’smainliabilitiesconsistofduetobanks,duetodepositorsanddebtinstrumentsissuedandotherborrowedfunds.Theseitemstogetherrepresented93.82%ofourtotalliabilitiesasat31March2021(95.18%asat31March2020).The7.09%decreaseinliabilitywasmainlyduetothe27.68%droporRs.6.30BilliondecreaseinduetobankscomparedtoprioryearofRs.22.77Billioninlinewiththelendingportfoliocontraction.

Due to Banks

Duetobanksdeclinedby27.68%to Rs.16.46Billionasat31March2021fromRs.22.77Billionasat31March2020.Whilethedecreaseismainlyduetothesettlementoftheamountsduetobankswithitsstrongliquidityposition.TheCompanyhasborrowedRs.15.78Billionintheyear2021(2020-Rs.14.58Billion)tomanagethematuritymismatchofassetsandliabilitiesandmaintaintheexistingfundingmixoftheCompany.

2021 2020

Rs. ‘000 Rs. ‘000

Bank Overdrafts 988,099 720,411

DebtFunding fromBanks 15,479,080 22,050,674

DuetoBanks 16,467,179 22,771,085

22.05

15.782.38

(24.73)

(Rs. Bn)

15.48

As a

t 1Ap

ril 2

020

Loan

sO

btai

ned

Inte

rest

Reco

gnis

ed

Repa

ymen

ts

As a

t 31

Mar

ch 2

021

Debt funding

Due to Depositors

DuetodepositorsamountstoRs.85.86BilliondownRs.3.39Billionfrom31March2020.Thiswasprimarilydrivenbythe4.48%dropinthefixeddepositseasingtheconcentrationonlargervaluedepositswhilemaintaininghealthylevelsofliquidityforbusinessoperation.

Debt Instruments Issued and Other Borrowed Funds – Debentures

ThiscategoryincludesRs.3.00BillionlisteddebenturesissuedinDecember2017ofwhichRs.2.00BillionweresubordinateddebenturestostrengthenTierIIcapital.DebtinstrumentsissuedandotherborrowedfundsremainedatRs.3.11Billionasat31March2021and2020.

Shareholders’ Equity

Shareholders’equityamountstoRs.28.18Billionasat31March2021comparedwithRs.22.99Billionasat31March2020.ThisRs.5.18BillionincreaseismainlyattributabletotheprofitoftheyearwhichamountedtoRs.6.80BillionandpartiallyoffsetbytheRs.1.66Billioninterimdividendspaidinrespectoftheyearended31March2021.

ItisalsonoteworthythattheCompanysub-divideditsshareson10March2021wherebyeverysharewassub-dividedintofourshareswithoutanychangetothestatedcapitaloftheCompanytherebyincreasingthenumberofsharesinissuefrom138,514,284sharesto554,057,136shares.

CAPITAL REPORTS

Financial Capital

Change 2020/21

Rs. 5.2 Bn

Rs. 28.2 Bn2020 Rs. 23.0 Bn

SHAREHOLDERS’ EQUITY As at 31 March 2021

Rs. 6.8 Bn Profits

(Rs. 1.6 Bn) Interim Dividends

23%


Commitments and Contingencies

Commitmentsandcontingenciesmainlyconsistofimportletterofcredits,guaranteesissuedtobanksandotherinstitutionsandfinancingcommitmentsgiventocustomers.

Commitmentsandcontingenciesbalancesdeclinedby53.15%fromRs.1.92Billionasat31March2020toRs.0.90Billionasat31March2021mainlyduetothedeclineinfinancingcommitmentsgiventocustomers.

Commitments andcontingencies

0

500

1,000

1,500

2,000

2020 2021

(Rs. Mn)

Contingent LiabilitiesCommitmentsTotal Commitments andContingent Liabilities

53%

CAPITAL REPORTS

Financial Capital

Statement of Cash Flows

WeactivelymanagetheCompany’sliquidityandfundingtosupportourbusinessstrategyandmeetregulatoryrequirementsatalltimes,includingunderstress.ThisisevidentwiththeincreaseinouroperatingcashflowfromoperatingactivitiesfromRs.5.67BilliontoRs.8.42BillionwiththeincreaseinprofitsdemonstratingitsabilitytoturnouttheprofitsgeneratedbytheCompanyintocash.Thecashgeneratedthroughtheoperationsarebeingmainlyusedtosettletheamountsduetobanksandtopayinterimdividendtoourshareholders.

Thisreflectsanadditionalwayofviewingourperformancethatwebelieveisusefultoinvestorsbecauseitrepresentscashthathasbeengeneratedbythecompanythroughitsoperations.

5.44

8.41

(Rs. Bn)

(0.42)

(8.23)

(8.23)

5.20

Statement of cash flows

As a

t Beg

inni

ngof

the

Year

Inve

stin

gAc

tiviti

es

Ope

ratin

gAc

tiviti

es

Fina

ncin

gAc

tiviti

es

As a

t End

of th

e Ye

ar

HORIZONTAL ANALYSIS OF FINANCIAL STATEMENTS

Horizontalanalysis isusedinthereviewofaCompany’sFinancialStatementsovermultipleperiods.Itisusuallydepictedaspercentagegrowthoverthesamelineiteminthebaseyear. Ourhorizontalanalysis allowsfinancialstatementuserstoeasilyspottrendsandgrowthpatterns.

Statement of Financial Position

As at 31 March

CAGR* Current Year Rs. ‘000

Percentage Change Base Year Rs. ‘000

2021 2021 2020 2019 2018 2017 2016

AssetsCashandCashEquivalents 0% 6,187,300 2% 2% (33%) (3%) (52%) 6,051,898FinancialAssetsRecognisedThroughProfitorLoss-MeasuredatFairValue 0% 10,862 2% (56%) (36%) (9%) (5%) 10,645

FinancialAssetsatAmortisedCost-LoansandReceivables 20% 66,778,188 152% 120% 79% 51% 27% 26,449,169

FinancialAssetsatAmortisedCost-LeaseRentalsReceivableandStockOutonHire 1% 47,359,635 5% 34% 46% 39% 23% 45,104,836

FinancialAssetsMeasuredatFairValueThroughOtherComprehensiveIncome (11%) 77,789 (44%) (57%) (35%) (12%) (15%) 138,411

OtherFinancialAssets 20% 10,453,903 152% 120% 161% 63% 62% 4,142,716OtherNonFinancialAssets 11% 920,406 71% 80% 98% 51% (43%) 538,898InvestmentinSubsidiary 100% 521,162 100% 100% 100% 100% 0% -Property,PlantandEquipment 32% 8,241,259 303% 302% 222% 129% 72% 2,045,295IntangibleAssets (6%) 26,021 (25%) 20% 15% 38% 41% 34,765Total Assets 11% 140,576,525 66% 70% 61% 43% 22% 84,516,636

Liabilities DuetoBanks 2% 16,467,179 13% 56% 69% 57% 63% 14,577,233FinancialLiabilitiesatAmortisedCost-DuetoDepositors 10% 85,860,070 61% 67% 56% 37% 13% 53,379,801

DebtInstrumentsIssuedandOtherBorrowedFunds 4% 3,113,916 20% 20% 19% 98% (21%) 2,601,282

OtherFinancialLiabilities 10% 3,043,526 63% 48% 6% (6%) 7% 1,869,940OtherNonFinancialLiabilities 11% 1,028,054 72% 52% 246% 43% 13% 597,806CurrentTaxLiabilities 20% 1,872,154 153% 3% 88% (15%) (7%) 741,251DeferredTaxLiabilities 35% 637,073 345% 625% 815% 640% 252% 143,142PostEmploymentBenefitLiability 24% 365,265 188% 172% 102% 82% 21% 126,858Total Liabilities 9% 112,387,237 52% 63% 59% 42% 22% 74,037,317

EquityStatedCapital 0% 838,282 0% 0% 0% 0% 0% 838,282Reserves 23% 7,596,106 184% 133% 95% 60% 28% 2,670,537RetainedEarnings 23% 19,754,900 183% 129% 78% 47% 18% 6,970,499Total Equity 22% 28,189,288 169% 119% 76% 46% 19% 10,479,319Total Liabilities and Equity 11% 140,576,525 66% 70% 61% 43% 22% 84,516,636

L B MICROFINANCE MYANMAR COMPANY LIMITED (LBM)

ProfitbeforetaxofLBMoperationdecreased50.03%toRs.21.44MillionfromRs.42.90Millionreflectingachallengingoperatingenvironmentandincreasedcreditimpairmentcharges.NetinterestincomeofLBMincreased9.83%to Rs.132.71MilliondespitetheCOVID-19pandemicduetothehighertransactionalvolumesduringthefirstthreequartersofthefinancialyear.OuroperationsatMyanmarduringthelastquarterofthefinancialyearwasdisruptedduetotherisksassociatedwithpoliticalinstability,civilunrestandmilitaryconflictprevailed.

ImpairmentchargesandotherlossesincreasedtoRs.36.17Million(2020- Rs.25.43Million)duetothedeteriorationineconomicoutlookdrivenbytheCOVID-19pandemicandcurrentpoliticaltension.

Operationalexpensesincreased64.74%toRs.86.06MillionfromRs.52.23MillionreflectingtheLBM’sexpansionsintothenewregions.

TotalassetsofLBMamountedto Rs.909.93Millionasat31March2021primarilyconsistofloansandreceivablesbalancewhichaccountsfor75.74%ofthetotalassetsofLBM.

GrossloansandreceivablesincreasedtoRs.688.39MillionfromRs.554.09Millionor24.24%increasepredominantlyduetothecontinuedcustomersupportofLBMtothecustomersaswellasstrongcustomerretention.Duetodepositorsincreased36.62%toRs.80.14MillionfromRs.58.66Millionaligningwiththeincreaseinloansandreceivables.

*CAGR-CompoundAnnualGrowthRate


Income Statement CAGR* Current Year Rs. ‘000

Percentage Change Base Year Rs. ‘000

Year ended 31 March 2021 2021 2020 2019 2018 2017 2016

Income 14% 29,766,124 90% 100% 87% 60% 24% 15,646,467

InterestIncome 14% 27,457,741 90% 102% 90% 62% 24% 14,428,729

InterestExpenses 15% 11,522,802 100% 136% 124% 99% 41% 5,773,255

NetInterestIncome 13% 15,934,939 84% 80% 67% 37% 13% 8,655,474

OtherOperatingIncome 14% 2,308,383 90% 69% 57% 36% 19% 1,217,737

TotalOperatingIncome 13% 18,243,322 85% 78% 65% 37% 14% 9,873,212

ImpairmentChargesand OtherLosses 33% 1,691,734 311% 345% 139% 63% (110%) 411,793

TotalOperatingExpenses 9% 5,575,890 57% 66% 58% 43% 24% 3,543,352

ProfitbeforeTaxation 12% 9,306,375 75% 43% 45% 22% 10% 5,324,615

TaxonFinancialServices 23% 1,669,323 181% 284% 240% 125% 73% 593,452

IncomeTaxExpense 9% 2,503,778 56% 51% 67% 39% 22% 1,606,822

Profit for the Year 13% 6,802,597 83% 40% 36% 14% 5% 3,717,792

VERTICAL ANALYSIS OF FINANCIAL STATEMENTS

Verticalanalysis isamethodofFinancialStatementsanalysis inwhicheachlineitemislistedasapercentageofabasefigure withinthestatement.

Statement of Financial Position Percentage ChangeAs at 31 March 2021 2020 2019 2018 2017 2016

AssetsCashandCashEquivalents 4% 4% 3% 5% 3% 7%FinancialAssetsRecognisedThroughProfitorLoss -MeasuredatFairValue 0% 0% 0% 0% 0% 0%

FinancialAssetsatAmortisedCost-LoansandReceivables 48% 40% 35% 33% 33% 31%FinancialAssetsatAmortisedCost-LeaseRentalsReceivableandStockOutonHire 34% 42% 48% 52% 54% 53%

FinancialAssetsMeasuredatFairValueThroughOtherComprehensiveIncome 0% 0% 0% 0% 0% 0%

OtherFinancialAssets 7% 6% 8% 6% 7% 5%OtherNonFinancialAssets 1% 1% 1% 1% 0% 1%InvestmentinSubsidiary 0% 0% 0% 0% 0% 0%Property,PlantandEquipment 6% 6% 5% 4% 3% 2%IntangibleAssets 0% 0% 0% 0% 0% 0%

Total Assets 100% 100% 100% 100% 100% 100%

Liabilities

DuetoBanks 12% 16% 18% 19% 23% 17%FinancialLiabilitiesatAmortisedCost-DuetoDepositors 61% 62% 61% 60% 59% 63%DebtInstrumentsIssuedandOtherBorrowedFunds 2% 2% 2% 4% 2% 3%OtherFinancialLiabilities 2% 2% 1% 1% 2% 2%OtherNonFinancialLiabilities 1% 1% 2% 1% 1% 1%CurrentTaxLiabilities 1% 1% 1% 1% 1% 1%DeferredTaxLiabilities 0% 1% 1% 1% 0% 0%PostEmploymentBenefitLiability 0% 0% 0% 0% 0% 0%Total Liabilities 80% 84% 86% 87% 88% 88%

Equity

StatedCapital 1% 1% 1% 1% 1% 1%Reserves 14% 11% 9% 8% 8% 8%RetainedEarnings 5% 4% 4% 4% 3% 3%Total Equity 20% 16% 14% 13% 12% 12%

Total Liabilities and Equity 100% 100% 100% 100% 100% 100%

CAPITAL REPORTS

Financial Capital

*CAGR-CompoundAnnualGrowthRate

Statement of Financial Position

0

50

100

150

200

2017

2018

2019

2020

2021

(%)

Lending Base Total AssetsDue to Depositors Total Equity

Income Statement

0

30

60

90

120

150

(%)

Interest Income Total Operating Expenses Interest Expenses Profit for the Year

2017

2018

2019

2020

2021

TREND ANALYSIS OF FINANCIAL STATEMENTS


Income Statement Percentage Change

Year ended 31 March 2021 2020 2019 2018 2017 2016

Income 100% 100% 100% 100% 100% 100%

InterestIncome 92% 93% 93% 93% 92% 92%

InterestExpenses 39% 44% 44% 46% 42% 37%

NetInterestIncome 54% 50% 49% 47% 51% 55%

OtherOperatingIncome 8% 7% 7% 7% 8% 8%

TotalOperatingIncome 61% 56% 56% 54% 58% 63%

ImpairmentChargesandOtherLosses 6% 6% 3% 3% 0% 3%

TotalOperatingExpenses 19% 19% 19% 20% 23% 23%

ProfitbeforeTaxation 31% 24% 26% 26% 30% 34%

TaxonFinancialServices 6% 7% 7% 5% 5% 4%

IncomeTaxExpense 8% 8% 9% 9% 10% 10%

ProfitfortheYear 23% 17% 17% 17% 20% 24%

ECONOMIC CONTRIBUTION

TheCompany’sapproachtovaluecreationisarmedwithstrategiesfocusingonoperationalexcellenceandsustainability.Thisisnotmerelyshort-termbutlookstolong-termvaluecreationfocusingtriplebottomlinesustainablebusinesspractices.

Economic Value Added Statement (EVA)

EVAistheincrementalchangeintherateofreturnoveracompany’scostofcapital.Essentially,itisusedtomeasurethevalueacompanygeneratesfromfundsinvestedandapositiveEVAdenotesthecompanyisgeneratingvalue.

For the year ended 31 March 2021 2020 2019

Rs. Mn Rs. Mn Rs. Mn

Invested Equity

Shareholders’Funds 28,189.29 22,999.55 18,427.15

Add:CumulativeLoanLossProvision/ProvisionforImpairment 6,531.99 5,257.34 3,746.91

34,721.28 28,256.89 22,174.06

Earnings

ProfitAttributabletoShareholders 6,802.60 5,187.05 5,054.66

Add:LoanlossProvisions/ImpairmentProvision 1,691.73 1,831.06 982.11

8,494.33 7,018.11 6,036.77

EconomicCost%(AverageTreasuryBillRatePlus2%RiskPremium) 7.45% 10.66% 11.49%

EconomicCost 2,345.94 2,687.97 2,320.43

Economic Value Added 6,148.39 4,330.14 3,716.34

Economic value added

0

2,000

4,000

6,000

8,000

2019

2020

2021

(Rs. Mn)

Market Value Added (MVA)

MVAisthedifferencebetweenthemarketvalueoftheCompanyandthecapitalcontributedbyinvestors.Inotherwords,itisthesumofallCompanycapitalclaimsheldagainstthemarketvalueofdebtandequity.

For the Year ended 31 March 2021 2020 2019

Rs. Mn Rs. Mn Rs. Mn

Market Capitalisation

MarketValueofEquity 26,262.31 16,690.97 16,635.57

Less: Equity Owners' Funds

Shareholders’Funds 28,189.29 22,999.55 18,427.15

TotalEquityOwners’Funds 28,189.29 22,999.55 18,427.15

MarketValueAdded/(Destroyed) (1,926.98) (6,308.58) (1,791.58)

MVAbreakup

0

5,000

10,000

15,000

20,000

25,000

30,000

2019

2020

2021

(Rs. Mn)

Market CapitalisationTotal Equity Owners' Funds

Market value added

-7,000

-5,000

-3,000

-1,000

1,000

3,000

2019

2020

2021

(Rs. Mn)

CAPITAL REPORTS

Financial Capital


VALUEDISTRIBUTED

Rs. 29,766 Mn

InterestIncome

Rs. 27,458 Mn

Fee and CommissionIncome

Rs. 2,185 Mn

Net Trading Income

Rs. 6 Mn

Other OperatingIncome

Rs. 117 Mn

ValueGenerated

Rs. 29,766 Mn

16% 10%Economic Value Retained within the Business To Employees Salaries and Benefits

14% 37%Operating Costs To Depositors and Lenders

2019

2020

2021

2019

2020

2021

Rs. 3

,638

Mn

Rs. 4

,927

Mn

Rs. 4

,730

Mn

Rs. 2

,683

Mn

Rs. 2

,987

Mn

Rs. 2

,956

Mn

2019

2020

2021

2019

2020

2021

Rs. 3

,809

Mn

Rs. 4

,657

Mn

Rs. 4

,207

Mn

Rs. 1

3,21

9 M

n

Rs. 1

2,36

2 M

n

Rs. 1

1,12

5 M

n

7%To Providers of Capital

2019

2020

2021

Rs. 2

,252

Mn

Rs. 3

97 M

n

Rs. 2

,060

Mn

16% To Government

2019

2020

2021

Rs. 5

,014

Mn

Rs. 4

,651

Mn

Rs. 4

,508

Mn

Information on the generated and distributed value provides a basic indication of how the Company has created wealth for the stakeholders.

Components of the economic value generated and distributed provide an economic profile of the Company, which may be useful for controlling other performance indicators. Economic value generated and distributed portrays the direct monetary value added to local economy.

DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED

For the Year ended 31 March 2021 2020 2019

Rs. Mn % Rs. Mn % Rs. Mn %

Direct Economic Value GeneratedInterestIncome 27,457.74 29,160.29 27,363.77FeeandCommissionIncome 2,184.95 1,941.63 1,782.07NetTradingIncome 6.32 (2.10) (2.56)OtherOperatingIncome 117.11 123.04 134.74Economic Value Generated 29,766.12 31,222.86 29,278.02

Economic Value DistributedOperating CostsDepreciationandAmortisationSetAside 745.24 713.39 435.38ImpairmentChargeforLoansandOtherLosses 1,691.73 1,831.06 982.11TrainingCost 4.02 18.56 10.95OtherOperatingExpenses 1,765.83 2,094.40 2,380.39

4,206.82 14.13 4,657.41 14.92 3,808.83 13.01

To EmployeesEmployeesSalariesandBenefits 2,955.81 2,986.63 2,682.61

2,955.81 9.93 2,986.63 9.57 2,682.61 9.16

To Depositors and LendersInterestExpenses 11,125.01 13,218.85 12,361.66

11,125.01 37.37 13,218.85 42.34 12,361.66 42.22

To Providers of CapitalDividendtoShareholders 1,662.17 - 1,662.17InteresttoDebentureHolders 397.79 396.55 589.66

2,059.96 6.92 396.55 1.27 2,251.83 7.69

To GovernmentIncomeTaxExpenses 2,913.97 2,683.70 2,441.73DebtRepaymentLevy - 684.71 401.53VATandNBTonFinancialServices 1,669.32 1,593.85 1,614.09CropInsuranceLevy 67.71 52.06 51.00

4,651.00 15.63 5,014.32 16.06 4,508.35 15.40

To CommunitySocialResponsibilityProjects 37.29 22.52 26.95

37.29 0.13 22.52 0.07 26.95 0.09

Economic Value Retained 4,730.24 15.89 4,926.60 15.78 3,637.79 12.42

Economic Value Distributed 29,766.12 100.00 31,222.86 100.00 29,278.02 100.00

CAPITAL REPORTS

Financial Capital


INVESTORS

LBFalwayspayattentiontomaximiseshareholders’wealthbycarefullymanagingriskandreturnwhilecraftingthebusinessstrategiesinthebestinterestofitsshareholderssincethelifebloodofLBFisitsinvestors.Weengagewithourshareholderswhoareinterestedandinvestedinthesuccessandsustainabilityofourbusiness.Doingsohelpsustounderstandexpectationsandleadstobetteroutcomesoverthelong-term.

ThishelpedtheBoardtobuildanunderstandingofwhatmatterstoourinvestorsinthelong-termandtobuildalastingandtrustingrelationshipwithourshareholders.

How does LBF Engage with its Stakeholders?

TheBoardadoptsavarietyofmethodstoengagementwithitshareholderstounderstandtheviewoftheshareholders.

TheAGMisanimportanteventintheCompany’scorporatecalendarandanexcellentopportunitytoengagewithshareholdersandforshareholderstoaskquestionsfromtheBoard.

Annualreportandinterimfinancialstatementsofthecompanywiththeendeavorstoprovideallshareholderswithclear,consistent,high-qualityinformationatregularintervals,inaccordancewithbestmarketpracticeandtherecommendationsofstockmarketauthoritiesisalsoanotherformofcommunication.

LBFalsousespressconferencesandmediareleasestoprovidebriefingabouttheCompany’sstrategy,majoreventsconcerningtheCompany’sbusinessaswell.

Engagement in Action During COVID-19

Despitethechallengescausedbythepandemic,theCompanyheldits2020AGMwithaattendanceoflimitednumberofshareholderspresencewherepossibleasaresultoftheprohibitiononpublicgatherings.TheBoardalsoensuredthatallshareholdershadtheopportunitytoraisequestionsattheAGM.

Shareholders Return

Share priceappreciation

0

10

20

30

40

50

(Rs.) 57%

2021Rs. 47.40

2020Rs. 30.13

2020

2021

InlightofthechallengesimposedbytheCOVID-19pandemicandinresponsetotherestrictionsimposedoncashdividendfromtheCentralBankofSriLanka,theBoarddecidednottodeclarefinaldividendpaymentforfinancialyear2019/20whichwasexpectedtobepaidinthefirstquarterof2020/21.TheBoardconcludedthisdifficultdecisionwasprudenttopreserveadditionalcapitaltocontinuetoservetheneedsofthecustomersintimeofcrisiswhileunderstandingtheshort-termadverseimpactontheshareholders.However,withtheimprovementsintheperformanceduringtheyear,theCompanypaidaninterimdividendofRs.12.00pershare(basedonnumberofsharespriortothesharesub-division)duringthefinancialyear2020/21.TheCompanyalsoproposedafinaldividendofRs.4.00share(basedonpostsub-divisionofshares)toensurea

sustainablereturntotheshareholdersoftheCompany.

DespitetheCOVID-19pandemic,thesharepricesoftheCompanyincreasedby57%basedontherestatedmarketpricepersharereflectingthecontinuedinvestorinterestinsharesoftheCompanyduringtheyear.

SharePriceasattheBeginningoftheYear Rs.120.50

RestatedMarketPriceBasedontheSub-Division Rs.30.13

SharePriceasattheEndoftheYear Rs.47.40

SharePriceAppreciation Rs.17.28

DividendperShare(basedonPostSub-Division) Rs.7.00

TotalReturnperShare Rs.24.28

TotalYieldperShare 80.58%

Thisdemonstratesthatweremainfocusedonachievingsustainable,long-termearningsgrowthandmaintainstabledividendincomestreamtoourshareholders.

Share Sub-Division

BasedontherecommendationsmadebytheBoard,on10March2021shareholdersapprovedthesub-divisionofordinarysharesonthebasisofasub-divisionofeveryone(01)ordinaryshareintofour(04)ordinaryshares,thusincreasingtheexisting138,514,284issuedordinarysharesoftheCompanyto554,057,136ordinaryshareswithoutinanywaychangingtheStatedCapitaloftheCompany,whichwouldremainatRs.838,282,159/-.Thesharesplitwaseffectedwiththeintentionofloweringthesharepricesofthesharestoapricerangewhichisaffordabletomostinvestorsandincreasingtheliquidityofshares.

The Colombo Stock Exchange

ColomboStockExchange(CSE)endedthefinancialyearonapositivenote,despiteaverychallengingeconomicandoperatingenvironmentprevailedthroughouttheyearprimarilyduetotheoutbreakofCOVID-19duringthefirstquarterofthefinancialyear.Althoughthepandemicresultedinanearlyshockatthestartoftheyear,AllSharePriceIndex(ASPI)stoodat7,121asat31March2021reflectingaresilientperformanceoftradingactivitiesatCSE.StandardandPoor’s(S&PSL20)whichtrackstheperformanceoflargerblue-chipcompaniesraisedto2,850pointsasat31March2021from1,947pointsasat 20March2020priortotheactivitiesbeingclosedfornearlytwomonthsduetotheoutbreakofCOVID-19.

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ASPI

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DF Sector Index

(Rs. Mn) ASPI and S&P

Although,ASPIandS&PSL20indexesrecoveringgraduallyoverthefinancialyear,diversifiedfinancial(DF)sectorindexdidnotfollowthesametrendduringthefirstfewquartersofthefinancialyearmainlyduetotheuncertaintiessurroundingthebusinessgrowthwiththepandemicandthemonetaryeasingofferedtotheaffectedcustomersasperthedirectionsoftheCentralBankofSriLanka.However,inthelatethirdquarterandthefinalquarter,DFsectorindexwasmorealignedwithrecoveriesreflectedinASPIandS&PSL20indexesduetotheresurgenceofeconomicactivitiesandexpectationthatthevaccinecoulddrivetheeconomicrecovery.

Performance of LBF Share

LBF share price movement

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AsdepictedinthegraphsabovethemarketpriceofLBFsharesincreasedby103.77%attheendofJanuary2021fromRs.146.00pershareattheendofDecember2020.TherewasacontinuedinterestinthesharesoftheCompanyandthetradingoftheCompany’ssharespeakedto4.73MillionsharestradeinhandsatthemonthofJanuary2021.

CAPITAL REPORTS

Financial Capital

LBF shares traded and turnover

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Annual Performance

2020/21 2019/20 2018/19

Share Price

Highest(Rs.) 348.75 167.50 129.90

Lowest(Rs.) *42.6 114.00 110.00

Closing(Rs.) *47.4 120.50 120.10

NumberofTransactions 21,681 2,995 1,857

NumberofSharesTraded 12,559,335 3,552,610 2,845,955

ValueofSharesTraded(Rs.Billion) 2.32 0.5 0.33

NumberofDaysTraded 216 223 218

AverageDailyTurnover(Rs.Million) 10.73 2.27 1.41

MarketCapitalisation(Rs.Billion) 26.26 16.69 16.70

*Pricepersharerepresentsthesharepriceafterthesharesub-division.

Quarterly Performance

Quarter 1 Quarter 2 Quarter 3 Quarter 4

Share PriceHighest(Rs.) 142.00 154.00 151.90 348.75

Lowest(Rs.) 114.80 128.00 129.00 *42.6

Closing(Rs.) 140.00 143.70 146.00 *47.4

NumberofTransactions 685 3,540 3,319 14,137

NumberofSharesTraded 169,819 1,790,586 1,810,166 8,788,764

ValueofSharesTraded(Rs.Million) 23.40 242.09 254.59 1,798.27

NumberofDaysTraded 35 64 62 55

AverageDailyTurnover(Rs.Million) 0.67 3.78 4.11 32.70

*Noticeablereductioninpricepershareofthequarter4representsthesharepriceafterthesharesub-division.

FLOAT ADJUSTED MARKET CAPITALISATION

TheFloatadjustedmarketcapitalisationasat31March2021–Rs.5,714,447,683/-

TheFloatadjustedmarketcapitalisationoftheCompanyfallsunderOption5ofRule7.13.1(a)oftheListingRulesoftheColomboStockExchangeandtheCompanyhascompliedwiththeminimumpublicholdingrequirementapplicableunderthesaidoption.

LBF SHARE

General Information

As at 31 March 2021 2020

TotalNumberofSharesinIssue 554,057,136 138,514,284

PublicShareholding 21.76% 21.83%

BetaValueAgainstASPI 2.48 1.43

Other Information

Stocksymbol LFIN.N0000

Newswire codes of LBF Share:

Bloomberg LFIN.SL

Dowjones LFINN

Reuters LFIN.CM

CAPITAL REPORTS

Financial Capital

Weaimtodelivertheexpectationofourshareholdersthroughexecutionofourstrategieswhileservingourcustomertomeettheirneeds.

LBFinanceprudentlymanageitsearningswithapolicytoprovidesustainablereturntoshareholderswhilegivingthemanagementtheflexibilitytoreinvestcapitaltogrowtheCompany.

Weareinvestedtoprovidelongtermvaluetoourshareholders.

LBFinancestrivetocreatevalueforourshareholderfundinginassessingtheperformanceofafundagainstthemarketorindustrybenchmarks.

Weensurethatthecompanyisoperatedonafoundationofstrengthandiswell-positionedtodeliversustainablereturnstoourshareholders.

MARKET CAPITALISATION (AS AT 31 MARCH)

Year Shareholders’ Funds

Rs. Mn

LFIN Market Capitalisation

Rs. Mn

CSE Market Capitalisation

Rs. Mn

Market Capitalisation as % of CSE Market

Capitalisation

2016 10,479 14,696 2,586,150 0.57%

2017 12,510 16,400 2,662,860 0.62%

2018 15,349 16,604 3,032,710 0.54%

2019 18,427 16,635 2,605,899 0.64%

2020 22,999 16,690 2,128,266 0.78%

2021 28,189 26,262 3,111,259 0.84%

2019

2020

2021

29.9

3%

26.5

8%

Return onEquity

25.0

4%

2019

2020

2021

Rs. 9

.12

Rs. 9

.36

Rs. 1

2.28

EarningsPer Share

2019

2020

2021

Rs. 3

3.26

Rs. 4

1.51

Rs. 5

0.88

Net Assets Valueper Share

2019

2020

2021

3.29

3.22

3.86

Price Earnings (PE)

2019

2020

2021

Rs. 1

8,42

7 M

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2,99

9 M

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8,18

9 M

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ShareholderFunds

AsindicatedabovethemarketcapitalisationoftheCompanyincreasedfromRs.16.69Billionin2020toRs.26.26Billionin2021accountingfor0.84%(2020–0.78%)ofthetotalmarketcapitalisation.TheCompany’ssharesareoneofthemostprominentsharesamongthelistedsharesoftheCompany.ThetotalmarketcapitalisationoftheCSEasat31March2021wasRs.3,111BillioncomparedtoRs.2,128Billionasat31March2020anincreaseof46.19%.MarketcapitalisationoftheCompanyalsoincreasedsignificantlyfromRs.16.69BilliontoRs.26.26Billionor57.34%increase.

KEY SHAREHOLDER DATA


CAPITAL REPORTS

Financial Capital

LARGEST SHAREHOLDERS OF THE COMPANY

Shareholders As at 31 March 2021 As at 31 March 2020

No. of No. of

Shares (%) Shares (%)

1 VallibelOnePLC 286,729,600 51.751 71,682,400 51.751

2 RoyalCeramicsLankaPLC

CommercialBankofCeylonPLC/RoyalCeramicsLankaPLC 144,492,928 26.079 36,123,232 26.079

3 EsnaHoldings(Pvt)Ltd 56,249,600 10.152 14,062,400 10.152

4 BNYMRe-FrontauraGlobalFrontierFundLLC 8,853,464 1.598 2,290,135 1.653

5 PershingLLCS/AAverbachGrauson&Co. 8,024,312 1.448 2,006,078 1.448

6 HattonNationalBankPLC/Mr.KarunaRanarajaEkanayaka

MudiyanselageDharshanMadurangaBandaraJayasundara 2,600,000 0.469 401,249 0.290

7 JanashakthiInsurancePLC-NONPAR 2,000,000 0.361 500,000 0.361

8 Mr.KDAPerera 1,708,116 0.308 438,996 0.317

9 Mr.NUdage 1,616,540 0.292 329,135 0.238

10 FincoHoldings(Private)Limited 1,566,358 0.283 - -

11 SeylanBankPLC/WDNHPerera 1,280,000 0.231 - -

12 Mr.AAPage 1,259,200 0.227 314,800 0.227

13 Mr.AMWeerasinghe 1,220,944 0.220 - -

14 People’sLeasing&FinancePLC/Dr.HSDSoysa&Mrs.GSoysa 923,264 0.167 230,816 0.167

15 Mrs.PCCooray 834,528 0.151 208,632 0.151

16 JBCocoshell(Pvt)Ltd 803,712 0.145 237,626 0.172

17 Mr.NPDESamaranayake 800,000 0.144 240,000 0.173

18 CommercialBankofCeylonPLC/JanashakthiCapitalLimited 640,000 0.116 - -

19 Mr.WDNHPerera 638,180 0.115 - -

20 Mr.PSomadasa 578,700 0.104 138,051 0.100

522,819,446 94.362 129,203,550 93.278

Others 31,237,690 5.638 9,310,734 6.722

Total 554,057,136 100.000 138,514,284 100.000

DISTRIBUTION OF SHAREHOLDINGS AS AT 31 MARCH 2021

From To No. of Shareholders

No. of Shares %

1 1,000 1,744 507,678 0.09

1,001 10,000 1,273 4,804,807 0.87

10,001 100,000 496 14,055,043 2.54

100,001 1,000,000 63 17,088,546 3.08

Over1,000,000 14 517,601,062 93.42

3,590 554,057,136 100.00

No. of shareholders

0 500 1,000 1,500 2,000

1 - 1,000

1,001 - 10,000

10,001 - 100,000

100,001 - 1,000,000

Over 1,000,000

FINANCIAL CAPITAL ANALYSIS

Dupont analysis (ROE analysis)

Return onEquity (ROE)

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DISTRIBUTION OF SHAREHOLDINGS AS AT 31 MARCH 2020

From To No. of Shareholders

No. of Shares %

1 1,000 1,235 286,758 0.09

1,001 10,000 499 1,730,147 0.87

10,001 100,000 127 3,690,102 2.54

100,001 1,000,000 17 3,988,348 3.08

Over1,000,000 8 128,818,929 93.42

1,886 138,514,284 100.00

COMPOSITION OF SHAREHOLDERS

2020/21 2019/20

Category No. of Shareholders

No. of Shares

% No. of Shareholders

No. of Shares

%

LocalIndividuals 3,414 35,311,308 6.37 1,766 7,246,739 5.23

LocalInstitutions 147 500,874,760 90.40 94 124,148,216 89.63

ForeignIndividuals 25 535,292 0.10 21 131,432 0.09

ForeignInstitutions 4 17,335,776 3.13 5 6,987,897 5.04

Total 3,590 554,057,136 100.00 1,886 138,514,284 100.00

SHARE PRICES FOR THE YEAR

2020/21 Date 2019/20 Date

Market Price per Share

HighestDuringthePeriod Rs. 348.75 27 January 2021 Rs.167.50 18February2020

LowestDuringthePeriod *Rs. 42.60 24 March 2021 Rs.114.00 24April2019

AsatEndofthePeriod *Rs. 47.40 Rs.120.50

*Pricepersharerepresentsthesharepriceafterthesub-division.

SHARE TRADING DETAILS

2020/21 2019/20

No.ofTransactions 21,681 2,995

No.ofSharesTraded 12,559,335 3,552,610

ValueofSharesTraded(Rs.) 2,318,348,085 507,729,473

PUBLIC HOLDING

PublicHoldingspercentageasat31March2021 21.76%

Numberofshareholdersrepresentingtheabovepercentage 3,582

No. of shareholders

0 300 600 900 1,200 1,500

1 - 1,000

1,001 - 10,000

10,001 - 100,000

100,001 - 1,000,000

Over 1,000,000

DIRECTORS’ SHAREHOLDINGS

Names of Directors No. of Shares as at 31 March 2021

As a % of Total Shares

No. of Shares as at 31 March 2020

As a % of Total Shares

Mrs.AKGunawardhana - - - -

Mr.KDDPerera - - - -

Mr.JASSAdhihetty 424,480 0.077 106,120 0.077

Mr.NUdage 1,616,540 0.292 329,135 0.238

Mr.BDAPerera - - - -

Mr.RSYatawara 7,620 0.001 905 0.001

Mrs.YBhaskaran - - - -

Mr.MAJWJayasekara - - - -

Mrs.AshwiniNatesan - - - -

Mr.DRangalle - - - -

DEBENTURES

InDecember2017,LBFinanceraisedRs.3.0Billiontoboostbusinessgrowthopportunity,reducingthemismatchofmaturityperiod,toimprovethecapitaladequacyoftheCompanyandtostrengthenTierIIcapitalposition.

Year 2020/21 2019/20

IssuedDate 11-Dec-17 11-Dec-17

TypeofDebenture Type A Type B TypeA TypeB

MaturityDate 11-Dec-22 11-Dec-22 11-Dec-22 11-Dec-22

CSEListing Listed Listed Listed Listed

Code LFIN/ BD/11/12/22-C2 387-A-12.75

LFIN/ BD/11/22/22-C2 388-B-13.25

LFIN/BD/11/12/22-C2387-A-12.75

LFIN/BD/11/22/22-C2388-B-13.25

InterestPaymentFrequency Bi-Annually Bi-Annually Bi-Annually Bi-Annually

CouponInterestRate 12.75% p.a 13.25% p.a 12.75%p.a 13.25%p.a

TradedYield(%) - - - 13.10%

No.ofDebentures 10,000,000 20,000,000 10,000,000 20,000,000

Amount(Rs.Mn) 1,000 2,000 1,000 2,000

Market price

Highest(Rs.) Did not trade during the year

Did not trade during the year

Didnottradeduringtheyear

100.34

Lowest(Rs.) 100.34

Close(Rs.) 100.34

Credit Ratings

TheCompany’screditrating,A-(lka),wasaffirmedbyFitchRatingsLankaLimitedin2021.

Credit Rating - Debentures

ThecreditratingoftheCompany’sSeniorandSubordinatedDebentureswasaffirmedatA-(lka)andBBB(lka)byFitchRatingsLankaLimited.

CAPITAL REPORTS

Financial Capital

1 2 3 input strategic drivers challenges

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