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Vallibel Finance profit triples in H1 2021/22

a year ago

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Vallibel Finance PLC ended the first half of the 2021/22 financial year (FY 21/22) with a profit of Rs. 1.3 billion from Rs. 0.5 billion recorded in the corresponding period in the previous year which reflects a 158.1% growth. Commenting on the financial performance, Vallibel Finance PLC Managing Director Jayantha S.B. Rangamuwa stated: “We are pleased to report strong results for the first half of FY 21/22. 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.” It also reflected 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.  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. 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 billion to Rs. 35 billion despite the challenges emanating from the pandemic.  Vallibel Group Chairman Dhammika Perera added: “I am proud of Vallibel Finance for forging ahead as a market leader in the footsteps of the Vallibel Group. Its performance in the first half of the financial year under review despite the challenges from the pandemic reflects its strong management expertise and exceptional team.”