LB Finance Secured A+ Entity Rating with Stable Outlook 📈

Lanka Rating Agency has assigned an initial A+ rating to LB Finance PLC, highlighting its dominant position in the leasing and finance sector and superior asset quality. • Market Position: As of September 2025, the company holds a significant 12.3% share of the sector's total assets and 12.4% of total deposits. It operates a nationwide network of 221 branches. • Portfolio Breakdown: The lending book is diversified across gold loans (38%) and leasing and vehicle loans (42%), with the balance in mortgage and term loans. • Financial Performance: • Net Interest Income: Reached Rs. 14.2 Bn in 1H FY2026. • Profitability: Reported Rs. 5.8 Bn for 1H FY2026, a 23.7% YoY increase. • Asset Quality: Maintained exceptional standards with a Gross NPL ratio of 1.55%, significantly below industry averages. • Capital Strength: The Capital Adequacy Ratio stands at 23.66%, far exceeding the Central Bank’s 14% requirement for large finance companies. The outlook remains stable, backed by strong controls and its status as a subsidiary of the Vallibel One Group (51.75% stake).