Asia Asset Finance PLC (AAF) reported robust financial and operational performance for the third quarter ended 31 December 2025, recording strong balance sheet growth, improved profitability, and enhanced risk buffers amid a competitive financial services environment.
The company’s total asset base expanded to Rs. 45.76 billion, reflecting a 32.73% year-on-year increase, driven by portfolio growth and disciplined asset deployment. Net asset value per share rose to Rs. 35.62 from Rs. 31.13 a year earlier, indicating continued shareholder value creation.
AAF’s lending portfolio recorded significant momentum during the quarter, with the total loan book increasing by Rs. 13.5 billion to Rs. 40.10 billion, marking a 50.93% year-on-year growth. The expansion was supported by targeted product strategies, wider regional penetration, and improved credit processing efficiency across its branch network.
Profitability indicators strengthened during the period. Operating profit before tax rose to Rs. 1,177 million, representing a 108.16% year-on-year increase, reflecting growth in core income streams and tighter cost management. Profit after tax stood at Rs. 680.29 million, up 35.79% compared to the corresponding period last year, while earnings per share increased to Rs. 5.48 from Rs. 4.03.
Higher business volumes and earnings translated into increased statutory tax contributions. Income tax expenses rose to Rs. 496.79 million, while VAT on financial services amounted to Rs. 533.03 million.
The company also strengthened its credit risk safeguards alongside portfolio growth. The provision coverage ratio improved to 59.09%, compared to 37.68% a year earlier, reflecting a more conservative provisioning position. Key prudential and performance ratios remained healthy, with return on equity at 22.12%, capital adequacy ratio at 24.83%, and net interest margin sustained at 10.70%.
During the quarter, AAF expanded its islandwide footprint to 111 branches, with plans to open a further 22 branches within the current financial year to enhance accessibility and customer reach. The company also retained its Fitch A+ rating with a Stable Outlook.
Chief Executive Officer Rajiv Gunawardana said the third-quarter results reflected disciplined growth and strong credit governance across the network.
“Our third-quarter performance reflects disciplined growth, strong credit governance, and focused execution across the network. We have expanded our asset base and lending portfolio while simultaneously strengthening our risk buffers and capital position. Our priority remains sustainable, quality growth — expanding access, improving efficiency, and delivering consistent value to customers, depositors, and shareholders,” he said.
Asia Asset Finance PLC operates with the backing of the Muthoot Group and maintains a nationwide branch network of 111 outlets, positioning itself as a key player in Sri Lanka’s non-bank financial services sector.
