JKSB Quarterly Highlights_LB Finance PLC (LFIN)_3QFY18
LFIN reported 10.2% YoY earnings growth for 3QFY18 which was complimented by robust growth in net interest income (+27.9% YoY) and fee and commission income (+34.2% YoY) coupled with a slight improvement in cost to income ratio (-0.3ppts YoY). An increase in impairment charges by Rs.132.7mn to Rs.184.0mn was observed, with Gross NPLs experiencing a marginal increase (+0.22% QoQ) during the quarter, on the back of the adoption of a more conservative NPL classification policy for working capital loans. Growth in net interest income stemmed from loan book growth coupled with an expansion in NIMs stemming from better deposit cost management.
We maintain our full year earnings projection of Rs.4.1bn for FY18E (+4% YoY). We expect NIM expansion in 4QFY18 on the back of the CBSL lowering the deposit ceiling for NBFIs to 12.1% w.e.f from 01st January 2018. We expect growth in leasing disbursements to be mainly driven by demand in the smaller four-wheel vehicle segment. At its current price of Rs.126.10, LFIN trades at a FY18E P/E of 4.3x, at a discount to its peer average, and at a P/BV of 1.2x (based on December 2017 NAVPS) which represents a premium to the industry average.
•JKSB is one of 15 founding members of the Colombo Stock Exchange with roots in share trading dating back to 1896, and is a subsidiary of John Keells Holdings PLC (JKH), the largest listed entity on the Colombo Stock Exchange with a market capitalization of US$ 1.3bn.
•JKSB’s core client base is Foreign Institutional Investors, Local Institutions and HNWI’s
•JKSB has a co-branded Research tie up with CIMB and a Research Referral agreement with Credit Suisse, along with trade execution relationships with several other global and regional securities firms.
•JKSB’s trade execution partners include Credit Suisse, CIMB, Merrill Lynch, Exotix, Daiwa, Convergex, Deutsche Asia Securities and Morgan Stanley
•JKSB is a research contributor to Bloomberg on ‘KEEL’
•The JKSB Research Universe covers 72 stocks across 15 sectors, with most Research efforts focused on approximately 45 of the more liquid counters.
•The JKSB Universe constitutes 67% of total market cap and approximately 80% of turnover at the CSE.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.