Vallibel Finance profits grow by impressive 158.1%
Despite pandemic-induced economic challenges, Vallibel Finance PLC ended the first half of the 2021/22 financial year on a strong note, reflecting an upsurge in Gross Income by as much as 22.8% to reach Rs 5.4 billion in comparison to Rs 4.4 billion achieved in the first half of 2020/21. This stellar performance was secured by way of opening its loan book, expanding margins and ensuring competitive cost of funds.
As a result, Profit for the period under review soared to Rs 1.3 billion from Rs 0.5 billion recorded in the corresponding period in the previous year which reflects an unprecedented 158.1% growth.
Continuing on its robust growth trajectory, the Company reported a net interest income of Rs 2.7 billion for the first half of the financial year, up by a robust 52.1% from the same period in 2020, which demonstrates that the company continued to extend loans to customers to help them tide over the liquidity crunch and financial hardships caused by lockdowns and economic slowdown. Meanwhile, Interest Income showed a growth of 13.9%.Total Operating Income grew by 62.6% to Rs 3.5 billion from Rs 2.1 billion in the 1H 2021/22.
Commenting on the impressive financial performance, Managing Director of Vallibel Finance PLC, Jayantha S.B. Rangamuwa said, “We are pleased to report strong results for the first half of FY201/22. Vallibel Finance PLC has successfully sustained its total asset base at Rs 65.5 billion as at 30 September 2021. The Company’s capitalisation levels and liquidity levels remain above regulatory minimums. Moreover, the loan portfolio reached Rs 54.9 billion as at 30 September 2021, showing a solid growth of 15% over 31 March 2021. This performance infuses further confidence in our stakeholders.”
Notwithstanding the challenges that abounded during the year under review, especially with regard to recovery and collections due to lockdowns and lower levels of economic activity, the Gross Non-Performing Loan (NPL) ratio was successfully maintained well below the industry norm at 5.51%.
Vallibel Finance has built a reputation as a highly-trusted financial services partner which is evident in the fact that during the year under review, the Company grew its deposit base from Rs 32.1 billlion to Rs 35.0 billion despite the challenges emanating from the pandemic.