Vallibel Finance ups 1H PBT by 50% to Rs. 2.7 b

• Delivers strong earnings with superior asset quality
• Maintains strong balance sheet and operational resilience

Managing Director  Jayantha Rangamuwa

Vallibel Finance PLC has sustained its robust upward trajectory in the first half of FY 25/26, delivering exceptional financial results and further consolidating its position among Sri Lanka’s top five financial institutions. The company reported a Profit Before Tax (PBT) of Rs. 2.7 billion for the period under review, reflecting a remarkable 50% increase compared to the corresponding period last year, while Net Interest Income recorded a substantial 30% growth to Rs. 4.9 billion.

The company’s balance sheet and operational strengths remained evident, with its asset base expanding to Rs. 143 billion a healthy 28% increase from Rs. 112 billion a year earlier driven by healthy portfolio growth and prudent risk management. Non-Performing Loans (NPLs) improved significantly, declining to 2.78% from 5.19%, demonstrating stronger portfolio discipline and effective credit oversight.

This growth underscores improved asset quality, strengthened portfolio performance and disciplined cost management. It also reinforces the company’s milestone achievement earlier this year, when it became the fastest financial institution in Sri Lanka to surpass Rs. 100 billion in assets within just 17 years of operations, a testament to its rapid and sustained expansion.

Vallibel Finance’s profitability continued to strengthen during the first half of FY 25/26, with Profit After Tax (PAT) recording solid double-digit growth. PAT reached Rs. 2.6 billion for the period, up from Rs. 2.1 billion in the previous year. This performance reflects the company›s sharp improvement in PBT, supported by higher Net Interest Income, enhanced asset quality and continued operational efficiencies. The robust bottom-line growth highlights Vallibel Finance’s ongoing ability to translate top-line performance into sustained shareholder value despite a challenging macroeconomic environment.

Return on Equity (ROE) rose to 21.77%, up from 16.87% in 2024, signaling enhanced profitability and efficient capital utilisation. These indicators firmly position Vallibel Finance among the best-performing institutions in the sector and reflect its resilient business fundamentals amid economic headwinds.

A key driver of the company’s success is its ability to anticipate market shifts and introduce industry-first solutions. Vallibel Finance has pioneered innovative financial products that have gained strong customer traction and set new benchmarks in the industry. This innovative ethos extends across its digital transformation agenda, which focuses on elevating customer experience and optimising operational workflows through advanced technology.

Its nationwide presence remains a strategic strength, supported by a robust and continuously expanding network of 85 branches. This extensive footprint enables the company to serve customers across urban, semi-urban and rural markets, ensuring convenient access to its full range of financial solutions. It also plays a pivotal role in deposit mobilisation, lending expansion and customer engagement reinforcing Vallibel Finance’s reputation as a trusted and accessible financial services provider across Sri Lanka.

The expansion of the branch network in the Eastern Province is currently underway and is scheduled for completion by December 2025. The establishment of operations in the Northern Province is planned for early next year.

Vallibel Finance’s industry leadership has garnered consistent international recognition and accolades. The company has been honoured multiple times as Best Finance Company by The Global Economic (UK), reaffirming its standing as a future-focused and high-performing financial institution.

Furthermore, the Company adopts a strong and strategic digital approach, offering fully fledged solutions across all major digital channels to enhance customer convenience. This digital leadership not only strengthens its corporate image but also reinforces its position as a leader in the finance industry.

With its solid financial performance, expanding footprint and strong innovation pipeline, Vallibel Finance is well-positioned to capitalise on emerging opportunities and navigate evolving market dynamics with confidence. The company remains committed to driving value, resilience and progress across Sri Lanka’s financial sector.