**Colombo, Sri Lanka – 13 August 2026** – Vallibel Finance PLC (CSE: VFIN) has announced a robust start to the financial year 2026/27, reporting impressive financial results for the first quarter ended 30th June 2026. The leading non-bank financial institution demonstrated significant growth in key performance indicators, with its profit for the period climbing by a substantial 37.3% year-on-year for the Group, reflecting its resilience and strategic expansion amidst the evolving Sri Lankan economic landscape.
The interim financial statements, released on 12th August 2026, highlight Vallibel Finance’s ability to drive profitability and strengthen its capital base, supported by a recently concluded rights issue.
Stellar Revenue and Profitability Growth
The Group recorded a commendable gross income of LKR 8.58 billion for the quarter, marking a 57.0% increase from LKR 5.46 billion reported in the corresponding period of the previous financial year. This strong top-line performance translated into a net interest income of LKR 3.44 billion, up by 47.8% from LKR 2.33 billion in Q1 FY26.
Profit for the period for the Group reached LKR 1.15 billion, a significant jump from LKR 835 million in the prior year’s first quarter. This positive momentum also saw the annualised earnings per share (EPS) rise to LKR 17.46, compared to LKR 13.75 in the previous year, an increase of 27.0%.
Strengthening Capital and Asset Base
Vallibel Finance’s balance sheet showcased notable expansion, with total assets for the Group growing by 8.6% to LKR 195.73 billion as at 30th June 2026, from LKR 180.23 billion at the close of the previous financial year (31st March 2026). This growth was significantly supported by an increase in Financial Assets at Amortised Cost, particularly Loans and Receivables to Other Customers, which saw a 7.8% sequential increase.
A key highlight of the quarter was the successful completion of a Rights Issue, which saw the company raise LKR 2.12 billion. This capital infusion, completed on 8th May 2026 and listed on the Colombo Stock Exchange (CSE) on 14th May 2026, aimed at strengthening the company’s Tier 1 capital base and supporting the anticipated growth of its loan portfolio. Consequently, the Group’s total equity attributable to equity holders surged by 17.3% to LKR 22.17 billion as at 30th June 2026 from LKR 18.90 billion as at 31st March 2026, reinforcing the company’s financial stability.
The company’s robust financial health was further acknowledged by Lanka Rating Agency, which upgraded Vallibel Finance PLC’s entity rating to A- with a “Stable” outlook.
Managing Asset Quality and Ensuring Liquidity
While Gross Non-Performing Accommodation saw an increase to LKR 6.94 billion from LKR 3.63 billion year-on-year, and Net Non-Performing Accommodation also rose, Vallibel Finance maintains strong liquidity and capital adequacy ratios, positioning it to effectively manage these challenges. The Liquid Asset Ratio improved to 16.94% in Q1 FY27 from 15.05% in Q1 FY26, demonstrating enhanced liquidity.
The company continues to comply with all regulatory requirements set by the Central Bank of Sri Lanka. As at 30th June 2026, the Tier 1 Capital to Risk Weighted Assets Ratio stood at 10.88% (above the 10.00% minimum) and the Total Capital to Risk Weighted Assets Ratio was 15.65% (exceeding the 14.00% minimum). The Capital Funds to Total Deposit Liabilities Ratio also remained strong at 31.04%.
Outlook
Vallibel Finance PLC’s strong first-quarter performance underscores its strategic agility and robust operational framework. The successful capital raise through the rights issue, coupled with significant growth in revenue and profit, positions the company well for continued expansion and market leadership in Sri Lanka’s dynamic financial services sector. The company’s focus on prudential management and sustained growth is expected to deliver enhanced value for its shareholders.
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