Vallibel Finance to go for share issue

Vallibel Finance is gearing to launch a public share issue shortly in the Colombo Stock Exchange (CSE) according to sources.

"We are in the process in coming out with an initial public offering of the company shortly," Managing Director Jayantha Rangamuwa told the Daily News.

Carrying the name of the powerful conglomerate it belongs to, Vallibel Finance has been growing steadily, recording impressive returns.

Operating profits were up significantly by 23 percent for the last 3 quarters of 2009, rising to Rs 66.9mn as against Rs 54.6mn recorded for the same period in the preceding year, a company release said. The period under review also saw the company overtake the landmark level of Rs.1bn in deposits.

Vallibel Group Chairman Dhammika Perera, and the single largest shareholder of Sampath Bank and Hayleys, attributed his company's strong performance to a disciplined work ethic and a visionary outlook.

"It was extremely challenging but being in the company of giants inspired my team to set our sights high.

The passion, the commitment and most notably prudent financial stewardship displayed by the team is evident in our steady climb", he said.

The total earnings of Vallibel Finance rose to Rs 307mn in the first three quarters of 2009 from Rs. 270mn recorded for the same time period in the preceding year, showing an increase of 14 percent.

The profit before tax, according to the financial statement released to the media, rose 23 percent to Rs 66.9mn from Rs 54.6mn.

The total assets of the company grew to Rs. 1.55bn from Rs.1.45bn. Underlining the company's financial stewardship in times of economic turbulence, the level of non-performing loans (NPL) remained favourable, and the gross NPL ratio for the year was 3.62 percent.