LankaBangla Finance Limited disseminates information on its operations and initiatives on a regular basis. LankaBangla Finance Limited website serves as a key investor awareness facility, allowing stakeholders to access information on LankaBangla Finance Limited at their convenience. LankaBangla Finance Limited’s dedicated investor relations personnel play a proactive role in disseminating information to both analysts and investors and respond to specific queries.
LankaBangla Finance Limited
All figures in BDT million except (%)
|Financial Position||2014||2015||2016||2017||2018||Growth of 2018 over 2017||5 Year CAGR (%)/Average*|
|Property Plant and Equipment||311||1,292||1,430||1,803||2,406||33.44%||66.77%|
|Net current assets||3,935||1,845||4,045||3,359||3,239||-3.58%||-4.75%|
|Non Current Assets||25,813||37,132||30,847||50,124||42,909||-14.40%||13.55%|
|Long Term Liabilities||22,616||26,798||28,121||45,055||36,213||-19.63%||12.49%|
|Loans and Advances||30,396||41,819||51,244||66,544||68,676||3.20%||22.60%|
|Total Investment Portfolio||37,217||47,605||60,595||80,800||81,946||1.42%||21.81%|
|Non Interest Revenue||1,135||1,449||1,644||2,905||1,966||-32.32%||14.73%|
|Net Profit Before Tax||434||533||947||2,264||709||-68.68%||13.08%|
|Net Profit After Tax||454||421||796||1,926||444||-76.93%||-0.53%|
|Turnover of Share Trading by LBSL||181,674||148,645||166,902||363,646||235,595||-35.21%||6.71%|
|Gross Profit Ratio||59.47%||59.57%||54.26%||48.48%||59.72%||23.18%||56.30%|
|Operating Profit Ratio||15.34%||14.59%||18.37%||24.76%||15.24%||-38.45%||17.66%|
|Return on Capital Employed||1.41%||1.04%||1.55%||2.83%||0.56%||-80.10%||1.48%|
|Cash reserve ratio/ liquidity asset ratio (Required 2.5%)||2.64%||2.51%||2.52%||2.92%||2.57%||-11.97%||2.63%|
|Statutory Liquidity Reserve (Required 5%)||6.00%||5.05%||5.08%||5.10%||5.03%||-1.38%||5.25%|
|Capital Adequacy Ratio (2011: Test Run. Effct. From 2012)||17.26%||13.41%||12.45%||11.95%||16.18%||35.40%||14.25%|
|Gross Non performing assets to gross advances/Non performing loans (assets) to total loans (assets)||4.05%||3.20%||3.22%||2.85%||3.35%||17.26%||3.33%|
|Cost to Income Ratio||62.16%||63.92%||59.83%||51.95%||62.17%||19.68%||60.01%|
|Debt Equity Ratio||4.09||6.23||7.61||8.42||7.07||-15.98%||6.68|
|Financial Expense Coverage Ratio||1.26||1.24||1.34||1.51||1.26||-16.91%||1.32|
|Return on Equity (%)||6.59%||6.37%||12.29%||25.66%||4.90%||-80.91%||11.16%|
|Return on Assets (%)||1.26%||0.94%||1.39%||2.58%||0.51%||-80.12%||1.34%|
|No. of Share Outstanding||219||241||277||318||513||61.25%||23.76%|
|Net Asset Value (NAV) Per Share*||21.83||19.68||21.01||18.19||19.14||5.26%||-3.23%|
|Earnings Per Share (EPS)*||1.39||1.33||2.5||4.15||0.85||-79.40%||-11.45%|
|Market Price Per Share (Closing)||40||29||34.8||47.8||22.9||-52.09%||-13.02%|
|Price Earnings Ratio (Times) *||28.79||21.74||13.92||11.53||26.81||132.60%||20.56|
|Dividend Payment (C- cash & B- bonus)||10% B||15% B||15% B||7.5% B||-||-||-|
|10% C||15% C||15% C||7.5% C||15% C||-||-|
|Profit Per Employee (mn)||0.59||0.55||0.84||1.6||0.37||-76.93%||-11.20%|
Below listed all our downloadable items.
Consolidated and Separate Financial Statements (UN-AUDITED) as at and for the Period Ended 30 September 2019
Disclosure relating to un-audited 3rd Quarter ended Financial Statements on September 30, 2019
Consolidated and Separate Financial Statements (UN-AUDITED) as at and for the Half-Year Ended 30 June 2019
Disclosure relating to un-audited Half-Year ended Financial Statements on June 30, 2019
Consolidated And Separate Financial Statements (Un-Audited) For the period ended 31 March 2019 (1st Quarter)
Disclosure relating to Un-audited First Quarter Financial Statements for the period ended March 31, 2019
Disclosure relating to un-audited 3rd Quarter ended Financial Statements on September 30, 2018
Consolidated and Separate Financial Statements (Un-Audited) For the Period Ended September 30 2018
Disclosure relating to audited first Half Year Ended Financial Statements on June 30 2018
Consolidated and Separate Financial Statements Audited For the Half Year Ended on June 30 2018
1st Quarter Consolidated Financial Statements 2018 (Un-Audited)
3rd Quarter Consolidated and Separate Financial Statements 2017 (Un-Audited)
Half Yearly Consolidated and Separate Financial Statements 2017 (Un-Audited)
1st Quarter Consolidated Financial Statements 2017 (Un-Audited)
Audited Financial Statements for the year ended 2016
3rd Quarter Consolidated Financial Statements 2016 (Un-Audited)
Half Yearly Consolidated Financial Statements 2016 (Un-Audited)
1st Quarter - Separate And Consolidated Financial Statements 2016 (Un-Audited)
3rd Quarter Consolidated Financial Statements 2015 (Un-Audited)
Half Yearly Consolidated Financial Statements 2015 (Un-Audited)
1st Quarter Consolidated Financial Statements 2015 (Un-Audited)
3rd Quarter Consolidated Financial Statements 2014 (Un-Audited)
3rd Quarter Financial Performance 2014(Un-Audited)
Half Yearly Consolidated Financial Statements 2014 (Un-Audited) Half Yearly Financial Statements 2014 (Un-Audited)
1st Quarter Consolidated Financial Statements 2014 (Un-Audited) 1st Quarter Financial Performance 2014 (Un-Audited)
3rd Quarter Consolidated Financial Statements 2013(Un-Audited)
Half Yearly Consolidated Financial Statements 2013(Un-Audited)
1st Quarter Consolidated Financial Statements 2013(Un-Audited)
3rd Quarter Consolidated Financial Statements 2012(Provisional & Un-Audited)
Half Yearly Consolidated Financial Statements 2012(Provisional & Un-Audited)
1st Quarter Consolidated Financial Statements 2012(Provisional & Un-Audited)
3rd Quarter Consolidated Financial Statements 2011 (Audited)
Half Yearly Consolidated Financial Statements 2011 (Un-Audited)
1st Quarter Consolidated Financial Statements 2011 (Provisional & Un-Audited)
Half Yearly Financial Report 2010 (Un-Audited)
- Consolidated and Separate Financial Statements (UN-AUDITED) as at and for the Period Ended 30 September 2019
- Disclosure relating to un-audited 3rd Quarter ended Financial Statements on September 30, 2019
- Consolidated and Separate Financial Statements (UN-AUDITED) as at and for the Half-Year Ended 30 June 2019
- Disclosure relating to un-audited Half-Year ended Financial Statements on June 30, 2019
- Consolidated And Separate Financial Statements (Un-Audited) For the period ended 31 March 2019 (1st Quarter)
- Disclosure relating to Un-audited First Quarter Financial Statements for the period ended March 31, 2019
- Price Sensitive Information LBFL February 12, 2019
- Price Sensitive Information LBSL February 12, 2019
- Price Sensitive Information November 27, 2018
- Consolidated and Separate Financial Statements (Un-Audited) For the Period Ended September 30 2018
- Disclosure relating to Un-audited First Quarter Financial Statements for the period ended March 31, 2018
- Price Sensitive Information May 14, 2018
- Price Sensitive Information February 13, 2018
- Price Sensitive Information November 01, 2017
- Price Sensitive Information October 31, 2017
- Price Sensitive Information October 23, 2017
- Disclosure relating to Un-audited 3rd Quarter ended Financial Statements on September 30, 2017
- Price Sensitive Information August 24, 2017
- Price Sensitive Information August 10, 2017
- Price Sensitive Information August 1, 2017
- Disclosure relating to Un-audited first Half-Year ended Financial Statements on June 30, 2017
- Disclosure relating to Un-audited First Quarter Financial Statements for the period ended March 31, 2017
- Price Sensitive Information April 25, 2017
- Price Sensitive Information February 13, 2017
- Disclosure relating to Un-audited Financial Statements
- Issuance of right shares in the ratio of 01 (one) right share for every 02 (two) shares held
- Issuance of 2nd Non-Convertible Zero Coupon Bond of BDT 500 crore
- Notice of 8th Extraordinary General Meeting
- Issuance of commercial paper of BDT 1,500.00 million
- Price Sensitive Information 2016
- Price Sensitive Information of Zero Copon Bond-LBSL 2015
- 3rd Quarters Financial Performance (Un-Audited)
- Price Sensitive Information 2015
- Financial Performance 2015 (Un-Audited)
- Zero Coupon Bond Amounting 2014
- Zero Coupon Bond 2014
- Price Sensetive Information Securities 2014
- Price Sensetive Information-Purchase of Land-Final 2014
- 3rd Quarter Price Sensitive Information 2013
- Half-Year Price Sensitive Information 2012
- Price Sensitive Information Of Right Share Approved by SEC 2012
- Price Sensitive Information For Right Issu 2012
- Price Sensetive Information 2012
- 1st Quarter Price Sensitive Information 2012
- Price Sensitive Information Of Dividend for the Year 2011
- Price Sensitive Information of LBSL 2011
- Price Sensitive Information Of Distributin of Bonus Share for 2011
MESSAGE FROM THE
"LankaBangla has been developing its strategies for years based on diversification in markets with high growth potential, a customer-centric business model and technology as key elements in order to face the transformation process being experienced in its business segments. Sustaining earnings amidst challenging times and taking result oriented initiatives have helped us to elevate the company performance to the next level."
In the name of Almighty Allah, the Most Gracious and the Most Merciful.
Dear valued shareholders,
It is our great pleasure to invite you all to the 22nd Annual General Meeting of LankaBangla Finance Limited. I am glad to present the annual report, financial performances with audited financial statements for the year ended 31 December 2018, economic outlook and business strategies for the Company and its subsidiaries.
Bangladesh economy grew at a record 7.86% rate in 2018 which is expected to remain at the same level for 2019 ensuring robust economic growth. The fiscal expansion followed the growth trajectory with development budget allocation being 37% of BDT 4,645 billion national budget for FY 2018-2019. Amid robust GDP growth in 2018, broad money (M2) increased at slower rate of 9.41%. The low deposit rate resulted in yearlong liquidity shortage that was intensified due to the regulatory compliance of maintaining the AD ratio to a permissible level. This has resulted in high deposit rate and reduced interest rate spread.
During the year 2018 the foreign currency was under constant pressure amid balance of payment and current account deficit which might continue throughout 2019. Devaluation of BDT will definitely boost export oriented sectors but create pressure on inflation rate.
The year 2018 has been a difficult year, but as we look back over last five years, our Company had gone through extraordinary length to diversify the Company in terms of product offering, revenue growth, risk management, digital infrastructure and prudent balance sheet management. We have diversified our core lending portfolio with more exposures in Retail and SME customers which comprises of 65.68% of our loan book in 2018 from that of 18.29% in 2013. The diversification of asset base did not stop us from being a strong participant in the capital market.
In 2018, we have achieved BDT 444 million net profit after tax from consolidated operations and BDT 714 million from standalone operation of LankaBangla Finance Limited. Earnings per share (EPS) is BDT 0.85 on consolidated basis and BDT 1.40 on standalone basis. The year 2018 being an election year there was some political uncertainties which resulted in liquidity crunch in banking sector and bearish capital market; accordingly, our bottom line result has been greatly affected.
The net cash flow per share from operating activities has increased to BDT 3.30 up from negative territory last year. Due to high attrition rate of corporate and institutional (e.g. Financial Institutions) deposits, LankaBangla Finance focused and successfully increased its retail deposit base, at the same time bank borrowing decreased by 16% from that of 2017. Concurrently, we are exploring low cost and long term nature of funding avenue which will increase our interest rate spread. Already, LankaBangla Finance has availed USD 20 million Murabaha facility from ICD (Member of Islamic Development Bank Group) as the first NBFI in Bangladesh to secure Shariah-compliant foreign currency financing.
Although, Company’s earnings per share has been down by 79% in 2018 from that of previous year, we never lost sight that matters the most; serving our customers to our best capacity by growing together. As Bangladesh graduates into a middle-income country, the economy is growing more than double the growth rate of world average paving prosperous future in the days to come.
In the meantime, LankaBangla Finance Limited has become safer and stronger than ever enabling it to lend and raise capital to ensure growth for both our customers and shareholders. We have strengthened our balance sheet by issuing Right Share that has increased our shareholders’ equity to a new height of BDT 9,823 million up by 18% from 2017. Moreover, subordinated bond of BDT 1,793 million has strengthen our supplementary tier 2 capital. After those strategic initiatives, Capital Adequacy Ratio (CAR) of 16.18% on consolidated basis and 15.74% on standalone basis shows great improvement in terms of safety comparing to the consolidated and standalone CAR of 11.95 % and 11.81% respectively for the year 2017.
Our loan book and carrying value of investment registered marginal growth considering tight liquidity position and LBFL’s continuous focus on balance sheet diversification. Our focus on Retail and SME business segment has resulted into more diversified loan book. In 2018 we have added 2 more new branches in an effort to expand our geographical footprint.
Comparing to the marginal growth of LBFL’s loan book by 3.2%, its net interest income grew by 11.3% in 2018. Operating expenses growth was controlled successfully as it grew by only 3.7% in a competitive market and comparing to average yearly inflation rate of 5.54% in 2018.
Income from investment has reduced to BDT 434.00 million in 2018 from that of 914.00 million in previous year due to bearish stock market performance throughout the year. We had to make provision of BDT 342.29 million for diminution in value of investments and BDT 368.77 million for loans and advances. NPL increased to 3.60% in 2018 compared to 3.07% in 2017.
As political uncertainty abates of and the new government consolidates its position, capital market is expected to be upbeat in terms of turnover and general direction in price index. Although banking sector liquidity situation is still tight, it is expected to be better than that of last year. Besides, economic growth, positive corporate earnings in a growing economy and reduced uncertainty are expected to improve the capital market outlook. In 2018, Chinese consortium of Shenzhen and Shanghai Stock Exchange has inked deal with Dhaka Stock Exchange to become a strategic investor of DSE. Expectedly, the technical assistance and collaboration offered by the strategic investor is expected to benefit the capital market in future. Throughout the year 2018, the capital market was volatile and we strived to maintain the momentum. During the year average daily turnover in DSE and CSE has declined by 37.01% and 40.25% respectively compared to the last year. Political uncertainty, yearlong liquidity shortage in banking sector, unstable money market and selling pressure from foreign investors have played vital roles in the downtrend stock market. Our fee based income like brokerage and commission has reduced significantly by 38% in FY 2018. On top of that, we had to put aside considerable amount as provision for margin loans.
Despite the afore mentioned situations, our subsidiary Company, LankaBangla Securities Limited, has secured 1st position in terms of turnover for 13 consecutive years in Dhaka Stock Exchange and for 14 consecutive years in Chittagong Stock Exchange depicting our consistent strong presence in Bangladesh Capital Market.
We consider corporate social responsibility as an opportunity to work for advancing societal needs and improving communities. In 2018, we arranged 2nd phase of Tree Plantation at Ramu Cantonment, Cox’s Bazar. Besides, we have continued our support to underprivileged people of the community to ensure their health, shelter and education through LankaBangla Foundation.
Our board has recommended 15% cash dividend to the shareholders for their approval in the Annual General Meeting. LankaBangla Finance Limited pledges utmost importance in justifiable distributions to shareholders that is consistent with prevailing economy, financial condition of the Company and organizational strategy as a whole.
Our most important asset is our human capital. We attract the best talents in the industry through our flagship management trainee program and lateral entries that offers competitive compensations and benefits. We focus on need-based training for next generation of leaders. Newly recruited staffs go through proper orientation, external/internal training depending on the requirement of the job along with on the job training and mentoring.
As we navigate through 2019 after a difficult year, the management of LankaBangla Finance Limited stands resolute to the commitment of improved performance for coming years. Going forward in 2019, following strategies will be instrumental in setting priorities and focus of LankaBangla Group:
- To bolster our strong market position among the NBFIs by capitalizing the network effect of our wide branch coverage, leveraging existing relationships through cross selling and optimizing balance sheet for high-risk adjusted return.
- We will continue to diversify our revenue streams, reduce portfolio concentration and explore niche markets that have either superior return or reduced risk. We focus on the markets that matches our organizational strength.
- Strong corporate governance and adhering to strict compliance standards are two of the guiding ethos of LBFL. Vigorous effort to improve and maintain adequate liquidity, full compliance to all regulatory requirements will be our priorities like all other years.
- To maintain and leverage our leading position to materialize opportunities in capital market.
I would like to express my sincere thanks to the Board of Directors of the company for their valuable guidance and efforts to keep LankaBangla Finance Limited on right track. We are ever thankful to Bangladesh Bank, Bangladesh Securities and Exchange Commission, National Board of Revenue, Dhaka Stock Exchange, Chittagong Stock Exchange, Central Depository Bangladesh Limited, Registrar of Joint Stock Companies and Firms and all other relevant entities for their tremendous support, trust and indispensable contributions. Special thanks to our depositors and customers for believing in LankaBangla Brand. At LankaBangla Finance Limited, we believe in long-term sustainable performance and value we create though executing our long term strategies. We reiterate that fulfilling the commitment to our shareholders will remain the most important yardstick of our management’s success.
Mohammad A. Moyeen
Review & Statement
We have been able to bolster our capital base with diversified fund sources, build the image of a customer centric organization and provide full range of financial services maintaining good governance, transparency, credibility and advanced IT backbone inspite of the challenges from industry competitiveness, liquidity tightening and bearish capital market.
We have overcome a challenging year with the cooperation of all and become stronger as a Group. Year long liquidity tightening, sheer underperformance of capital market impacted the bottom-line results but last five years' impressive result will surely continue in coming days as we change ourselves in this dynamic business environment, intervene with strategies that conforms to sustainability and long-termism.
Investor Relation Department
Vice President, Board Secretariat & Regulatory Affairs
Address : Safura Tower, Level-14 20 Kemal Ataturk Avenue Banani, Dhaka 1213
Phone : +880 2 9883701-10, Ext 402
Cell : +88 01713 069817
Fax : +880 2 8810998
E-mail : email@example.com