True P&L: Stop Looking at Net Profit! The REAL Risk in LB Finance 📉 | H1 2025/2026

LB Finance just released their H1 2026 numbers, and on the surface, it looks like a money-printing machine. 🚀 Net Profit is up 24%, Fee Income is up 66%, and ROE is sitting at an elite 21%.

But if you dig deeper into the balance sheet, there is a massive red flag that most investors are ignoring. 🚩

In this video, I’m breaking down the "High-Octane" strategy LB Finance is using to fuel this growth. We are looking beyond the P&L to expose a dangerous 166.8% Loan-to-Deposit ratio and what happens when you grow loans 3X faster than deposits.

Is this sustainable brilliance, or a liquidity trap waiting to happen? Let's dive into the True P&L.

🔥 IN THIS VIDEO, WE COVER:

The Profit Illusion: How they achieved Rs. 5.8B in Net Profit despite rising costs.

The Funding Mismatch: Why borrowing Rs. 46.8B from banks to fund loans is a double-edged sword.

Asset Quality Secrets: What a NEGATIVE (-1.36%) Net NPL ratio actually tells you about their fear of the future.

The "Gold Standard" Metric: Why their 1.22 Cash Conversion Ratio makes them better than 90% of the market.

The Verdict: Is LB Finance a buy, or is the risk too high?

📊 KEY STATS AT A GLANCE:

Net Profit: Rs. 5.8B (+24%)

Loan Growth: +27.6% (Aggressive!)

Deposit Growth: +9.8% (Lagging)

Loan-to-Deposit Ratio: 166.8% ⚠️

👇 DROP A COMMENT: Do you think the aggressive borrowing strategy is genius or dangerous in the current Sri Lankan economy? Let me know below!

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⚠️ DISCLAIMER: This video is for educational purposes only and does not constitute financial advice. Always conduct your own due diligence and consult a qualified financial advisor before making investment decisions.

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