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.

Investor Downloads

Below listed all our downloadable items.

  • Annual Report 2021
    Annual Report 2021(Abridge Version)
  • Annual Integrated Report 2020
    Annual Integrated Report 2020
  • Annual Integrated Report 2019
    Annual Integrated Report 2019
  • Annual Integrated Report 2018
    Annual Integrated Report 2018
  • Annual Integrated Report 2017
    Annual Integrated Report 2017
  • Annual Integrated Report 2016
    Annual Integrated Report 2016
  • Annual Report 2015
    Annual Report 2015
  • Annual Report 2014
    Annual Report 2014
  • Annual Report 2013
    Annual Report 2013
  • Annual Report 2012
    Annual Report 2012
  • Annual Report 2011
    Annual Report 2011
  • Annual Report 2010
    Annual Report 2010
  • Annual Report 2009
    Annual Report 2009
  • Annual Report 2008
    Annual Report 2008
  • Annual Report 2007
    Annual Report 2007
  • Information Memorandum, LankaBangla Finance Limited Zero-Coupon Bond
    Information Memorandum, LankaBangla Finance Limited Zero-Coupon Bond


LankaBangla Finance Limited

All figures in BDT million except (%)

Financial Position 2015 2016 2017 2018 2019 Growth of 2019 over 2018 5 Year CAGR (%)/Average*
Total Assets 50,448 63,935 85,443 87,889 84,363 -4.01% 13.72%
Total Liabilities 44,099 57,164 77,014 77,954 74,708 -4.16% 14.09%
Business Disbursement 35,770 45,539 56,726 38,754 33,666 -13.13% -1.50%
Property Plant and Equipment 1,292 1,430 1,803 2,406 2,861 18.93% 21.99%
Current Assets 19,146 33,088 35,318 44,980 58,403 29.84% 32.16%
Current Liabilities 17,301 29,043 31,959 41,741 56,368 35.04% 34.35%
Net current assets 1,845 4,045 3,359 3,239 2,035 -37.16% 2.48%
Non Current Assets 37,132 30,847 50,124 42,909 25,960 -39.50% -8.56%
Long Term Liabilities 26,798 28,121 45,055 36,213 18,340 -49.36% -9.05%
Loans and Advances 41,819 51,244 66,544 68,676 65,117 -5.18% 11.71%
Term Deposits 29,992 40,033 51,553 53,231 46,751 -12.17% 11.74%
Total Investment Portfolio 47,605 60,595 80,800 81,946 78,642 -4.03% 13.37%
Operational Performance
Operating Revenue 6,237 7,306 9,981 11,061 11,758 6.30% 17.18%
Operating Expenses 1,612 1,999 2,671 2,770 2,873 3.70% 15.54%
Financial Expenses 3,715 3,964 4,839 6,606 7,275 10.14% 18.30%
Non Interest Revenue 1,449 1,644 2,905 1,966 1,585 -19.38% 2.26%
Net Profit Before Tax 533 947 2,264 709 725 2.21% 7.99%
Net Profit After Tax 421 796 1,926 444 508 14.35% 4.82%
EBITDA 4,340 5,008 7,256 7,315 8,363 14.33% 17.82%
Turnover of Share Trading by LBSL 148,645 166,902 363,646 235,595 147,526 -37.38% -0.19%
Financial Ratios
Gross Profit Ratio 59.57% 54.26% 48.48% 59.72% 61.89% 3.63% 56.78%
Operating Profit Ratio 14.59% 18.37% 24.76% 15.24% 13.69% -10.16% 17.33%
Return on Capital Employed 1.04% 1.55% 2.83% 0.56% 0.66% 16.97% 1.33%
Cash reserve ratio/ liquidity asset ratio (Required 2.5%) 2.51% 2.52% 2.92% 2.57% 2.57% -0.31% 2.62%
Statutory Liquidity Reserve (Required 5%) 5.05% 5.08% 5.10% 5.03% 5.04% 0.21% 5.06%
Capital Adequacy Ratio (2011: Test Run. Effct. From 2012) 13.41% 12.45% 11.95% 16.18% 16.75% 3.53% 14.15%
Gross Non performing assets to gross advances/Non performing loans (assets) to total loans (assets) 3.20% 3.22% 2.85% 3.35% 5.20% 55.47% 3.56%
Cost to Income Ratio 63.92% 59.83% 51.95% 62.17% 64.09% 3.09% 60.39%
Current Ratio 1.11 1.14 1.11 1.08 1.04 -3.85% 1.09
Debt Equity Ratio 6.23 7.61 8.42 7.07 6.90 -2.47% 7.25
Financial Expense Coverage Ratio 1.24 1.34 1.51 1.26 1.22 -2.71% 1.31
Return on Equity (%) 6.37% 12.29% 25.66% 4.90% 5.27% 7.51% 10.90%
Return on Assets (%) 0.94% 1.39% 2.58% 0.51% 0.59% 15.07% 1.20%
Equity Parameters
Authorized Capital 3,000 10,000 10,000 10,000 10,000 0.00% 35.12%
Paid-up Capital 2,406 2,767 3,183 5,132 5,132 0.00% 20.84%
Shareholders' Equity 6,262 6,687 8,327 9,823 9,482 -3.47% 10.93%
No. of Share Outstanding 241 277 318 513 513 0.00% 20.84%
Net Asset Value (NAV) Per Share* 19.68 21.01 18.19 19.14 18.48 3.47% -1.56%
Earnings Per Share (EPS)* 1.33 2.5 4.15 0.85 0.98 14.96% -7.37%
Market Price Per Share (Closing) 29 34.8 47.8 22.9 18.00 -21.40% -11.24%
Price Earnings Ratio (Times) * 21.74 13.92 11.53 26.81 18.33 -31.62% 18.47
Dividend Payment (C- cash & B- bonus) 15% B 15% B 7.5% B 0% 5% B - -
  15% C 15% C 7.5% C 15% C 7% C - -
Profit Per Employee (mn) 0.55 0.84 1.6 0.37 0.41 9.88% -7.31%
Credit Ratings
Long Term AA3 AA3 AA3 AA3 AA3 AA3 -
Short Term ST-2 ST-2 ST-2 ST-2 ST-2 ST-2 -


"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 Fellow Shareholders,

As we endure through the unprecedented health catastrophe during the COVID-19 pandemic, we pledge our solidarity with solemn gratitude to the doctors, nurses, police officers, financial service community, individuals taking a courageous step as the first responder to the crisis and those who are risking their lives fighting it.

As for the future unfolds, in the short run we have no other way to prioritize the containment measures to protect our people and resources from this healthcare emergency and an eventual economic slowdown. On the pre-pandemic basis, we already have been maintaining a superior capital adequacy ratio (CAR) of 16.75% on a group-wide basis thanks to one of the most diversified core lending portfolios in the industry, a strong liquidity position, a reduced marketable and mutual funds exposure in our proprietary investment portfolio and alternative funding source through subordinate debt. Altogether, all those strategies are expected to moderate the shock of the economic slowdown for LankaBangla Group comparing to the competing NBFIs that are not that well-diversified. In this backdrop, I am glad to present the annual report for LankaBangla Group for the year ended 31 December 2019 and warmly invite you all to the 23rd Annual General Meeting of LankaBangla Finance Limited.

I am happy to convey that we have achieved net profit growth both on a group and a solo basis as a direct result of the revenue diversification strategy implemented over the years. Despite the double-digit revenue growth of LankaBangla Finance Limited on a solo basis, the consolidated revenue growth has been flattened due to weak revenue streams from capital market operations. The underperformance of the capital market is owing to the drastic fall of price indexes and turnover in both of the stock exchanges influenced mostly by weak financial sector liquidity, the lucrative yield on risk-free securities/instruments and eroded investor’s confidence. In contrast, we have achieved net interest earnings growth by 16.4% on a constrained core lending portfolio amid subdued private sector financing opportunities; this impressive performance is largely credited to the efficacy of timely balance sheet restructuring through opportunistic growth in credit card and SME loan portfolio.

The weak private credit growth has impacted the cash flow and liquidity of our business customers whether it is large or small. The impact is more severe for legacy corporates and SME segment borrowers which has contributed to increase in our non-performing loan (NPL) ratio. Although the industrywide NPL ratio is trending upward with a double-digit number, LBFL’s target hygiene standard for asset quality is considerably stringent from that of the industry average. We have focused extensively on the collection and monitoring; to accommodate that a grassroots collection measures, significant management and process restructuring have been implemented. We have set aside a significant amount from this year’s net operating income as provision due to severe underperformance of capital market and stress on core lending portfolio. Despite that development, we have achieved Earning Per Share (EPS) of BDT 1.43 on a solo basis and BDT 0.98 on a consolidated basis; an improvement comparing to FY 2018 earning. The board of directors has recommended 7% cash and 5% stock dividend per share of BDT 10 each for our valued shareholders.

Navigating through COVID-19 fallout
The fallout from the COVID-19 pandemic has put the whole world in a stressful situation where general economic activity has been suspended partially. No doubt, interest income from the core lending portfolio, proprietary investment income and commission earnings from brokerage will take a considerable shock in the short term which may extend to medium term. On the other hand, the eventual reversal is contingent upon the trajectory of the recovery which is linked to factors such as the level of success in containing the spread of the virus, discovery of therapeutic medicine and vaccinations, appropriate policy response and global supply chain restoration, etc. In response, the LankaBangla group will maintain the legacy of a diversified quality balance sheet, uphold the highest ethical standards and a culture of innovation in this rapidly changing business environment. In terms of tackling this extraordinary situation we already have taken adequate measures that will safeguard our capital, protect depositors’ trust and wellbeing of all our stakeholders.

  • The Health and safety of our employees, customers and broader stakeholders is the top priority ever. We have implemented work from home in swiping fast fashion and ensured bare minimum physical footprint in our offices to minimize the possibility of the spread of the virus maintaining operational continuity. Customers are encouraged to take services through our state of the art and round the clock call center.
  • We are committed to going on extraordinary length to help our customers - consumers, SMEs, mid and large businesses to cope up with this pandemic on the path to eventual recovery. Our ethos of growing together is founded on the premise that sharing the prosperity of our customers in good times comes with the burden of responsibility in collaborating for a better future in hard times.
  • Taken vigorous approach in maintaining liquidity in the back-drop of risk-off market sentiment.
  • Intensified the monitoring of the core lending portfolio and appropriate human resources re-structuring has been done to align with this renewed focus area. Besides, we are working out the suitable structuring of existing loan contracts that best handle the cash flow slacks and catalyze for the economic recovery of the borrowers to achieve debt sustainability.
  • We have streamlined productivity metrics, taken steps to reduce operational leverage and integrated technology operation to overcome operational bottlenecks.

Structuring a business model that ensures safety and stability
No doubt the NBFI sector in Bangladesh is going through a challenging time; besides the COVID-19 pandemic, the rising default rates, decreasing interest rate spread, rising cost to income ratio, weak governance and stiff liquidity space being the major ones. Like other NBFIs, the success of LBFL depends on dealing with those challenges where the financial markets are shared by hyper-competitive non-banking and banking entities. While a general downtrend in interest spread is observed all over the financial service industry, the NBFIs, in general, have a lower spread compared to the banks which get worse in a stressed financial market situation. To cope up with the constraints, LankaBangla has taken considerable exposures in those segments that have a relatively higher interest rate spread adjusted of the management cost and normalized default rate. Diversified consumer (including credit card) and SME customer base will make us competitive against decreasing spread. The retail and SME portfolio already have gained significant momentum in terms of operational efficiency and market penetration. The credit card, supply chain finance and SMEs have a high potential of fee-based earnings. Besides, the dominant market share in brokerage business preserves the upside potential in terms of commission earnings when markets recover. LankaBangla has recalibrated its efficiency metrics through better training of employees, competency alignment for each job role, process restructuring and access to proper digital infrastructures.

Independence and objectivity in everyday decision making fortify the foundation of governance at LankaBangla Group. We have a strong board representation that is instrumental in exerting prudential oversight over every strategic decision of LankaBangla Group. Here, the decision making is not concentrated, rather it is delegated to competent management positions for a timely and informed response to the job; also with a robust escalation mechanism in tandem with the importance of the decision or exception handling capacity. We have focused on product innovation across the board including all lending, liability, brokerage, investment banking and wealth management products and services. We have taken a coordinated approach in customer segmentation of retail and SME products for better business planning that yields a lucrative return. All these initiatives are complemented with the right mix of asset allocation decisions, strong risk management practices and robust control mechanisms.

Prioritizing long term growth potential in the asset allocation decision
Since the inception of LankaBangla Finance Limited, we always have prioritized the sectors that present a growth potential on a long term basis. We are the only non-bank based issuer of credit cards (Both Master card and Visa) competing against the bank based players with a strong market position, the largest brokerage house in the country in terms of turnover and have one of the most diversified core lending portfolios amongst all the NBFIs.

Historically, LankaBangla Group was tilted towards capital market operation as the major revenue source that exposed the group to capital market swings. After the stock market crisis in 2011, considerable effort has been given and as a result, not only we have successfully diversified our revenue base but also able to maintain the top position in capital market operations till now. Early corporate portfolio concentration has been reduced greatly to a more symmetrical distribution amongst corporate, retail and SME product portfolio. LankaBangla Finance Limited has diversified its loan portfolio by increasing exposure to the CMSME sector vigorously over the last 5 years; By the end of December 2019, SME Comprises of 29% of LBFL’s core lending portfolio, corporate comprises 30% and retail holds the majority of the pie at 41 %. Moreover, we are continuously reducing our negative equity on margin loan which has improved our performance and increased sustainability.

These extraordinary maneuverings on a large scale are the testimony of our implementation and change management capacity. We make the changes that create economics of scale and ensures impeccable operational excellence. As a group, we have structured our balance sheet based on our unique competencies and competitive edge. The strategic changes to asset allocation are transitioned in a gradual manner resulting in a well-diversified balance that seems effortless but very complex in terms of execution. At Lankabangla Group, our priority is to maintain our balance sheet in a way that gives the highest security to our depositors and creditors supplemented with a competitive return, stable risk-adjusted return to our shareholders and equitable payoff to all our stakeholders.

Technology-driven business solution
The digital transformation has enabled the financial service industry to thrive using a superior informational advantage. At LBFL, we already have taken substantial measures to align the skillset of our employees and enabling them with proper access to digital infrastructure. The approach to the technologydriven business solution is aimed to take advantage of business scalability with a low-cost structure. We are moving towards a paradigm where our technology-driven business solutions powered by a cultural environment that prioritizes efficiency and highest ethical standards will better position us in a highly competitive financial service industry. The symbiotic relationship of people, products, process and technology platforms will create a better business environment for all our stakeholders.

LankaBangla Finance Limited has launched a full range of financial services for women under a “Shikha” platform. This platform will be instrumental in offering superior services to our women customers and broader stakeholders in a fresh new approach to celebrate the economic emancipation of women. LankaBangla Finance Limited is committed to making a positive impact on society from both a financial performance standpoint and excelling in environmental, social and corporate governance (ESG) standards. Besides our extensive preparation for COVID-19 pandemic to safeguard our broader stakeholders, LankaBangla Finance Limited has donated BDT 20 million to the Prime Minister's Relief and Welfare Fund as part of its effort to combat Covid-19. LankaBanga Finance Limited received Best Presented Annual Report Awards for 2018 both from the South Asian Federation of Accountants (SAFA) and from The Institute of Chartered Accountants of Bangladesh (ICAB) in NBFI category.

As the chairman, I am proud of the LankaBangla Brand and greatly thankful to our sponsor and independent directors for their prudent board oversight and guidance in making what we are today. I am also indebted to the management and employees of the group for their dedication, managerial leadership and unwavering commitment to make LankaBangla such an excellent place to work. I reiterate that our capital, competency, intellectual rigor and operational fundamentals remain strong to attract capital and capacity to lend and invest, unfolding a future that all the stakeholders can depend on. We will continue to innovate; adopt appropriate strategies to protect our capital, depositor’s trust to keep ourselves strongly relevant in this competitive and changing business scenario.

Despite the plausibility of a short to medium term slack in the economic activity, we believe our resources will endure thorough COVID-19 pandemic fallout only to rise stronger; the credit standing of our borrowers would recover and the effective collaboration will yield better future for all our stakeholders. In the coming days, our diversified balance sheet will safeguard our investments, greater efficiency drive will generate more productivity and innovation and investment in technology will prepare ourselves for digital evolution. I strongly believe, the competitive edge, the prudence and resilience of our Company will reflect in the attractive long term return from our efficiently allocated assets in the days to come.

Yours sincerely,
Mohammad A. Moyeen

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Managing Director's

Review & Statement

We have efficaciously managed our liquidity in 2019 amidst the mid-term liquidity dearth industrywide by coalescing foreign source of fund with domestic sources, collaborated with financial partners including individual depositors, strengthen capital base further to support future expansion, restructured business processes, made prudent loan disbursement by trading off liquidity vs. business, brought out creative initiatives to maintain asset quality, optimized costs, made mentionable investment in IT infrastructure, taken endeavours to keep the image of a customer centric organization and provide full range of financial services despite the year possessed unprecedented challenges from industry competitiveness, adverse liquidity situation, negative image of the industry and bearish capital market.

Dear Stakeholders,

We have passed another challenging year of prolonged liquidity dearth, rise of countrywide NPL, negative image of the NBFI industry due to failure of liquidity management of several NBFIs, sheer underperformance of capital market, exhilarating competition, reduction of net interest margin because of increase in cost of fund. LBFL has overcome these challenges with impressive and solid team work, successful implementation of the right strategies, diversified fund sourcing including foreign fund and local subordinated debt raising, restructured business processes, cautious and focused loan disbursement, effective cost management and by impressive progression in using of latest IT solutions. Results of these initiatives are increase in bottom line to some extent both stand-alone basis and as group.

Investor Relation Department

Masum Ali

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 :

Particulars 2021 2020
Long Term AA3 AA3
Short Term ST-2 ST-2
Outlook Stable Stable
  • AA3

    Very strong capacity
    Very high quality
    Very low credit risk

  • ST-2

    High grade
    Strong capacity
    Commendable liquidity

Rated by Credit Rating Agency of Bangladesh Limited(CRAB)
Based on audited financial statements up to December 31, 2020, unaudited financial statements as of March 31, 2021 and other relevant quantitative as well as qualitative information up to the date of rating declaration (July 19, 2021)
Valid up to June 30, 2022