K Seeds Investments has identified LB Finance PLC as the best performing finance company under the first category among the 29 listed finance companies in Sri Lanka through a ranking carried out based on their financial performance for the first quarter of 2021/22.

Attesting to how the 1.4 trillion asset-based NBFI sector has been showing resilience during the quarter in dealing with the turbulence caused by the pandemic, LB Finance PLC delivered a PAT of Rs. 1.34 billion for FY 2021/22 and secured the top spot among the listed finance companies in Sri Lanka.

The report segregates the finance companies based on the size of their asset base, and ranks them in their respective categories among their peers based on ten financial metrics, which are calculated from the published quarterly financial statements. LB Finance PLC topped the overall spectrum by belonging to ‘Category 1’ (asset base > Rs. 100 billion). Categories 2, 3 and 4 represent the companies having an asset base between Rs. 50-100 billion, Rs. 20-50 billion and less than Rs. 20 billion respectively.

The report ranks the finance companies according to their financial results released through interim reports on the Colombo Stock Exchange across 10 key performance indicators (KPIs) – cost/income ratio, return on equity, return on assets, net profit margin, net interest margin, impairment to loan book, credit to deposits, operating leverage, net profit growth and loan growth. These 10 KPIs are weighted equally, and an overall ranking is arrived at based on the aggregate score for each category.

K Seeds Investments is a boutique investment bank in Sri Lanka, specializing in mergers and acquisitions, balance sheet structuring, equity/debt placements, treasury management, corporate restructuring and talent management.

Source- Daily ft