Vallibel Finance 1Q pre-tax profit up 23% to Rs. 107 m

Wednesday, 5 September 2012 00:44 - - {{hitsCtrl.values.hits}}

The financial arm of dominant holdings Vallibel Group, Vallibel Finance, showed marked growth in operations as the first quarter (Q1) of the new FY 2012/2013 draws to a close. Branch network expansion was seen as was growth in several key financial markets.

Over the months of July and August, the financier inaugurated branches in the cities of Galle and Chilaw. Speaking on the move, Jayantha Rangamuwa, Managing Director of Vallibel Finance, was confident of the company’s ability to penetrate a substantial customer segment through its aggressive expansion strategy. “We have been gradually evolving over the years, taking operations to areas where demand for financial solutions is high,” he said. The Galle and Chilaw operations are full-fledged branches deploying the entire Vallibel Finance product range – fixed deposits, leasing, hire purchase and microfinance.

The recently-concluded first quarter of FY 2012/2013 has proven to be a resounding success; pre-tax profits stood at Rs. 107.9 m, a 23% year-on-year increase from Q1 2011/2012. Total assets, which were Rs. 6.6 b at the end of the previous fiscal year, showed a 9% rise over the new quarter to stand at Rs. 7.2 b.

As a result of successful deposit canvassing campaigns, total deposits swelled by 16% to Rs. 4.5 b from the Rs. 3.9 b recorded at the end of FY 2011/2012. The financier was also able to minimise bad debts and non-performing loans through persistent loan recovery mechanisms and a careful credit policy; Gross Non Performing Loan (NPL) ratio stood at 2.90 and Net NPL at 1.33.

Vallibel Finance represents the financial sector interests of the Vallibel Group, a multi-faceted holdings company with entrepreneur Dhammika Perera who is also Chairman of Sampath Bank PLC, at its helm. “While Vallibel itself has been extending its interests into unchartered territories, it is really heartening to see one of our envoys in the financial sector pursuing expansion aggressively and playing and integral role in Sri Lankan economic development. I strongly believe the path it is on will lead to the upper echelons of the sector,” Perera said. Under the expert guidance of the dynamic Perera, the Vallibel group continues to cement its position in the Sri Lankan corporate sphere with far-encompassing interests including PABC Bank, Hayleys PLC, Delmege Fosyth and Company Limited, Amaya Resorts, Royal Ceramics PLC, LB Finance, Fortress Resort and Vallibel one, etc.