Vallibel Finance records pre-tax profit of Rs.2.38 bn
View(s):Vallibel Finance PLC has demonstrated resilience and industry leadership status in the financial year 2020/21, in a year plagued by the COVID-19 pandemic, by recording a Profit before Tax of Rs. 2.3 billion, up by 28.3 percent and Profit after Tax of Rs. 1.7 billion from Rs. 1.2 billion in the previous year.
The strong management expertise in the company is evidenced in the Non-Performing Loans (NPL) ratio improving to 4.48 percent from 5.01 percent in the previous year despite a number of defaulted payments.
“This positive result for the company reflects the recovery and collection drive embarked upon during the year despite the challenging impact on many customers linked to sectors such as tourism, vehicle imports etc which were badly affected during the year,” the company said in a statement.
The company grew its Gross Loan Portfolio to Rs.50 billion in the period under review, from Rs. 42 billion in the previous year, a growth of 19 percent as a result of the company’s aggressive growth strategy.
Pre-tax profit for the year under review was Rs. 2.8 billion, up by 17.1 percent from the previous year.
“The public confidence in the company was evident in the success achieved in deposit mobilisation during the year. Deposits rose to Rs. 32 billion, up by 10 percent from the previous year. Total assets increased to Rs. 55 billion,” it said.
In his comments, Dhammika Perera, Chairman Vallibel Group said, “Year after year, despite severely challenging operational environments and a global pandemic, Vallibel Finance continues to deliver unfailingly on its commitment to safeguard and create wealth and prosperity for all its stakeholders and shareholders.”
“We are proud of the financial performance that Vallibel Finance has delivered despite the challenges posed by the pandemic, which resulted in an economic slowdown, while the vehicle import ban impacted the financial services industry,” said Managing Director of Vallibel Finance, Jayantha Rangamuwa.
Generating wealth for shareholders, the company’s Earnings per Share increased to Rs. 29.36 from Rs. 21.29 in the previous year.