Triumphant 149% increase in net profit for Vallibel Finance

The rising star in the financial sector, Vallibel Finance, ended the first half of fiscal year 2011/2012 on a triumphant note, recording high growth statistics. The total asset base of the company rose by 39.41% from Rs. 3.88 billion at 31 March 2011 to Rs. 5.41 billion at 30 September 2011, attributing its growth to the accumulation of a portfolio of diverse liquidity and value.

The company specialises in catering to a wide range of retails and SME customers with a portfolio of cutting-edge financial products in hand. Its key growth segments of leasing, hire, purchase and gold-based loans have been performing above-standard within the first six months of the new fiscal year and showed lendings increasing by 41.57 % from the Rs. 3.26 billion recorded at the start of the year to Rs. 4.61 billion at  the end of the second quarter.

Fuelled by attractive rates plus the stability and security promised by the parent Vallibel Group – a trusted corporate player with stakes in some of the best companies in the country including Royal Ceramics, LB Finance, Delmege Forsyth, PABC Bank, Hayleys and Amaya Resorts – the company’s deposit base has increased to Rs. 3.36 billion as at 30 September 2011, growing by 29.29% from the Rs. 2.59 billion recorded as at 31 April 2010.

Chairman of the Group Dhammika Perera stated his satisfaction with the company’s overall performance, saying: “The half year results are very promising.

In itself, it is a testimony to the competency Vallibel Finance brings to the financial sector, but the bigger picture allows one to see that the company is sure to enjoy a very successful year, thanks to the impetus given by this start.”

Since its inception through acquisition by the far reaching Vallibel group, the finance company has been pursuing a strategy of aggressive expansion, out-running peers in the branch network race within a very short period. Openings planned for the next months include those in Kurunegala and Negombo, improving access of investors to vital financial services.

“The move toward widening operational boundaries has yielded the company its financial gains, with interest income increasing by an 81.63% during the first half of the year,” stated Vallibel Finance Managing Director Jayantha Rangamuwa.

“We have successfully maintained a very healthy NPL ratio of 1.13%, which is very much below the industry average through prudent lending and close monitoring as well as strategic recovery efforts.”

Proceeding robustly through a service-oriented ethic and quality products, pre-tax profit recorded a healthy Rs. 196 million for the first six months of the new year, a staggering 94% increase as compared to the Rs. 101 million recorded during the first half of the previous year.  

Further, net profit showed an increase of 149% over the first half of the new year.