Vallibel Finance gross profit up by 32 % in FY 2012/13

Vallibel Finance PLC recently announced its provisional financial performance for the recently concluded fiscal year 2012/2013, recording exponential growth in profits, asset base, public deposits and branch expansion.

S.B. Rangamuwa	Dhammika Perera

Total Interest Income of Vallibel Finance grew by 59% year-on-year from the Rs1,106 million recorded as at March 31, 2012 to stand at Rs. 1,763 mn as at March 31, 2013. Pre-Tax profit rose to an impressive Rs. 466 mn as at the end of the fiscal year, ascending 18% from the previous year’s figures of Rs. 394 mn. Profit After Taxation also increased by 23% over the year to stand at Rs 293 mn at the end of the year.

It is noteworthy that during the previous year, the company was ranked among the most respected entities in the country by LMD in its 2011 survey and also that its significant rise in brand equity was recognized in LMD’s Most Valuable Brand Survey 2013.

“The positive trajectory of the company’s profits is certainly very encouraging to all of us at Vallibel Finance,” said Jayantha Rangamuwa, Managing Director.

He opined that the upward trend has been made possible through careful investment in profit-worthy ventures as well as diligent management of overheads by the company.

“We have also been able to increase our asset base by a pronounced 40% over the year,” said Rangamuwa as the company records a total asset base of Rs. 9.3 billion at the end of the current financial year, a steep climb from the previous year’s Rs 6.7 billion and moreover, well above the industry average.

Fixed Deposits form an important part of the portfolio and with the public’s increasing trust in the financial arm of the powerful Vallibel group, Total Deposits which were Rs 4 bn last year grew significantly by 56% to reach Rs 6.3 bn at end-March. Net Non-Performing Loan Ratio (NPL) stood at an industry-benchmark steady 2.04%, evidence of successful due diligence and a prudent credit management policy.

FY 2012/13 was also a period of considerable geographical expansion for the young company; on the back of a strategy of aggressive expansion, new branches will be set up in localities including Moratuwa, Dambulla, Nugegoda, Polonnaruwa, Pitigala, Malabe with the aim of improving the access of the public to its unique financial service portfolio. Vallibel Finance deals chiefly in fixed deposits, hire purchase, leasing, pawning (Gold Loan) and micro finance products deployed via a cutting-edge technological framework.

Chairman, Vallibel Finance, Dhammika Perera said, “Stellar financial performance has once again proven that Vallibel Finance is a rising force in the financial sphere.

It has far surpassed expectations and continues to move up the ranks of the financial sphere over a very short period amid fierce competition. I applaud the efforts of my capable Board of Directors and our dedicated staff.”