Vallibel Finance delivered a definitive financial performance for the fiscal year 2023/24 and recorded a pre-tax profit of Rs. 4.6 billion (68.1% increase yoy) in comparison with Rs. 2.7 billion recorded in 2022/23. In alignment with our unwavering commitment to economic development and national growth, Vallibel Finance is pleased to announce the payment of Rs. 2.5 billion in Corporate Income Tax and Taxes on Financial Services for the fiscal year 2023/24 which is 50% of the total profit. This reflects a significant increase from the Rs. 1.4 billion paid in the previous fiscal year 2022/23.
As of March 31, 2024, total income surged to Rs. 20.03 billion, from Rs. 16.70 billion in 2022/23, primarily driven by revenue from loans and advances. The Gross Loan Portfolio experienced a remarkable turnaround, achieving an 11.2% growth. This growth underscores the strong trust our customers place in the Vallibel brand. All Key Performance Indicators (KPIs) exhibited robust expansion, including fixed deposits, lending, the pawning portfolio, and overall profitability.
The Managing Director of Vallibel Finance Jayantha Rangamuwa, commented, “Achieving this milestone despite headwinds reflects the robust nature of our people and processes, backed by digital technology and data-driven insights.”
The NPL ratio, a measure of nonperforming loans, decreased to 5.88% at the year-end, compared to the 6.16% recorded at the end of the previous financial year. The NPL ratio continues to be significantly lower than the industry average, which is a testament to the company’s strict risk management practices. A 59.9% increase was recorded in Earnings Per Share (EPS) in 2023/24 compared to the previous financial year from 54%. Rs. 5.69 recorded during the previous year.
The prevailing economic conditions challenged the financial stability of some customers and Vallibel Finance exhibited a strong customer focus to alleviate their financial burdens to the greatest extent possible by restructuring customer debts to better reflect their cash flows through loan rescheduling.
Further, we saw an expansion of our deposit base to Rs. 58.6 billion, from Rs. 49.6Bn marking a growth of 18.1% in the 2022/23 financial year. The Company’s total assets increased by 13.2% to Rs. 93.17 Bn compared to the Rs. 82.32 Bn recorded in the previous financial year. Vallibel Finance secured a BBB+ credit rating from the Lanka Rating Agency during the year under review.
