Vallibel Finance profit up 242% to Rs. 61.4 m

Vallibel Finance posted financial results for the nine months ending December 31, 2008, with overall exceptional results in asset growth, revenue, profit, asset quality and productivity.

The Company recorded a significant Rs. 61.4 million profit from operations, an increase of 242% and net interest margin of 9.23% for the period; a commendable success given the highly volatile market conditions that prevailed during the period, a media release said.

The Company continues to keep to its progressive journey of growth, overcoming economic fluctuations. During the nine months, total assets have risen to Rs. 1.4 billion recording a growth of 59%, whilst revenue recorded a growth of 287% compared to the corresponding period last year.

An increase of 41% was seen in hire purchase, leasing and loans, adding up to a momentous Rs. 1.65 billion. The Company’s fixed deposit collection too sustained the same upward momentum during the period, growing by 75% to reach an impressive over Rs. 360 million.

The Company also maintained significant liquid assets to a fixed deposit ratio of 32.74% at the end of the period which is in fact very much favourable than the regulatory requirement of 15%.

With improved collection from non-performing loans and close monitoring of lease and hire purchase portfolios, the Company also maintained the gross NPL ratio at a lower rate of 2.91% as at the end of the period.

“Vallibel is on a march forward to the very crest of the industry,” said Managing Director Jayantha Rangamuwa. “We are known for our commitment to provide unsurpassed customer convenience whilst seeking progress by strengthening and reinventing traditional methods and in turn it has helped in a big way to bring the Company to where it is today.”

He said that the present customer confidence and the increasing number of investors would help the Company reach even greater heights in future.

Vallibel Finance is registered by the Monetary Board of the Central Bank of Sri Lanka under the Finance Companies Act and is rated by Fitch Lanka B + lka.

The principal lines of business handled by the Company include Hire Purchase, Leasing, Fixed Deposits, Real Estate and Auto Finance.