JKSB Corporate Update_LB Finance PLC (LFIN)_August 2016

We rate LB Finance PLC (LFIN) a BUY at current valuations, based on: 1) a higher-than-industry Net Interest Margin (12.2% in FY16 vs. a NBFI sector NIM of 8.6%); 2) a lower-than-industry Non Performing Loan ratio (3.3% NPL ratio as at Mar 2016 vs. a NBFI sector NPL ratio of 5.1%); and 3) an attractive FY16 dividend yield of ~6%. LFIN currently trades at a FY17E P/E of 4.1x and a FY17E P/BV of 1.3x - below its historical P/E trading range of 5x-6x and its historical PBV trading range of 1.5x-2x -...