Vallibel Finance PBT grows 43% to Rs. 1.9 b

26-06-2018

Vallibel Finance PLC has raced to over Rs. 1 billion in net profits and gross profit of Rs. 1.9 billion, probably one of the quickest to the milestone, in what has been 11 years of epoch-making highs in growth, stability, stature and accolades.

The company’s meteoric rise from small beginnings to joining Sri Lankan business heavy-weights vindicates business tycoon Dhammika Perera’s confidence in naming the company as the name-bearer of the Vallibel Group. 

LMD had already named Vallibel Finance among the Leading and Most Respected Finance Companies in Sri Lanka while the Global Banking and Finance Review awarding the company as the fastest growing auto finance company for 2017 with the latest milestone further consolidating the financial trailblazer’s giant strides in the industry. 

In yet another remarkable year for the high-riding pace-setter, Vallibel Finance completed a resoundingly successful rights issue of over Rs. 1 billion which established and strengthened the capital base. 

Vallibel Finance PLC announced its income statement for the financial year ended on 31 March, 2018, recording growth across key indicators including income and profitability.

Gross income for the financial year grew 35% over the previous year to reach Rs. 6.9 billion, a figure that spoke eloquently of the company’s continuing ascendency with the previous year’s income at Rs. 5.1 billion. Net interest income accounted for a 38% increase over the previous year’s figure, reaching Rs. 2.7 billion from Rs. 1.9 billion.

Operating profits for the year under review grew exponentially by 43% to Rs. 1.9 billion from the previous Rs. 1.3 billion. Net profit amassed to Rs. 1 billion, growing by 40.3% on the back of outstanding performance built on prudent financial stewardship. Net profits for the previous year stood at Rs. 726 million thus leading the company pass the billion rupee milestone in profits.

Public confidence, the primary yardstick of stature and growth for a finance company, continued to soar even as deposits grew by 24% to Rs. 22.2 billion over the previous year’s Rs. 17.8 billion. The milestone assumes even more significance when considering the highly competitive nature of deposits mobilisation.

“We have been able to record impeccable performance, both qualitative and quantitative during a very challenging and daunting period of time. This is a testament to the ability of our remarkable workforce, our strength, our dedication, our constant need to better ourselves and implementations of our high performing strategies,” Vallibel Finance Managing Director Jayantha Rangamuwa said.

Vallibel Finance’s assets climbed to Rs. 38.4 billion from the previous Rs. 30.6 billion, accounting to a growth of 25.2%. Asset quality indicator, the non-performing loan ratio was recorded as 2.72% at the end of the financial year which is an improvement from the previous year’s 2.93%, indicating that the company’s continuously enhanced systems and processes are creating healthy impact with the streamlined recovery processes in operation further expected to strengthen the bottom-line of the company. Return on average equity improved to 34.77% from 32.37% recorded in the previous year.

“Vallibel Finance far exceeded the lofty ideals we set when we chose it to carry the group’s name. Today, it’s not only the pace-setter in the finance industry but an extraordinary role-model in business stewardship, building brand equity, withering the forces and creating wealth for all stakeholders,” Vallibel Finance Executive Director Dhammika Perera added.