Asia Asset Finance PLC (AAF) recorded a sharp increase in profitability during the first quarter of FY2026/27, with Profit Before Tax (PBT) rising 197.8% year-on-year to Rs. 877.9 million for the three months ended 30 June 2026.
Profit After Tax (PAT) increased 137% to Rs. 429.4 million, compared with Rs. 181.2 million during the corresponding quarter of the previous year.
Interest income rose 85.4% to Rs. 3.40 billion, while Net Interest Income increased 120% to Rs. 1.97 billion. The annualised Net Interest Margin improved to 13.9%, up from 10.6%.
The company’s total assets grew 12.3% during the quarter to Rs. 60.42 billion, while its loan portfolio increased by Rs. 3.51 billion to Rs. 50.51 billion.
Commenting on the results, AAF CEO Rajiv Gunawardena said the first-quarter performance reflected the resilience of the company’s business model, supported by its expanding island-wide presence, customer-focused solutions and risk management.
Shareholder indicators also improved, with Earnings Per Share rising to Rs. 3.46 from Rs. 1.46. Net Asset Value per Share increased 31.1% to Rs. 41.89, while annualised Return on Equity reached 34.4%.
The company reported an improvement in asset quality, with its Gross Non-Performing Asset Ratio declining to 7.5% from 12.5% and its Net Non-Performing Asset Ratio falling to 4.2% from 6.6%.
During the quarter, AAF opened five new branches, taking its island-wide network to 120, while also establishing a new training centre in Kurunegala.
