LBF is a highly profitable institution (ROE > 80%; ROA > 20%) thanks to rich portfolio yield and controlled cost structure resulting from highly standardized operations. It is further well capitalized with diversified funding structure with strong reliance on savings and local borrowings; low leverage with significant additional debt capacity.
However, LBF is family-dominated governance and management structures still in its early days of professionalization; weakened supervisory role of governance bodies as most senior managers are members of the Board of Trustees (BOT).
