Asia Asset Finance PLC (AAF) has reported stellar financial performance for the nine months ending 31 December 2024, reaffirming its position as a leader in the financial services sector. The company’s unwavering commitment to quality lending, operational efficiency, and sustainability has driven significant improvements across key financial metrics, strengthening its competitive standing.
AAF’s total asset base surged to an impressive LKR 34.48 billion, marking a remarkable 33.2% increase compared to the previous year. This growth was bolstered by a robust expansion of the loan portfolio, which grew by LKR 7.8 billion to reach LKR 28.4 billion. The company’s profitability also witnessed extraordinary growth, with profit after tax rising to LKR 500.97 million—an exceptional 123.54% year-on-year increase.
Demonstrating financial prudence, AAF maintained a healthy impairment ratio of 37.68%, reflecting its effective credit risk management practices. Additionally, the return on equity (ROE) stands at a strong 16.81%, underscoring efficient utilization of shareholder funds. The company’s capital adequacy ratio (CAR) remains well above statutory requirements at 22.72%, while the net interest margin (NIM) was sustained at a solid 9.42%, ensuring consistent profitability from core operations.
In a significant move to enhance customer accessibility, AAF expanded its branch network to 100 locations, adding nine new branches in the last quarter alone. This expansion aligns with the company’s strategic vision of strengthening its presence across Sri Lanka. At the same time, AAF has prioritised operational sustainability, successfully automating its Human Resources and Internal Audit departments. This transition has reduced paper usage in these areas to less than 1%, exemplifying the company’s commitment to sustainable business practices.
Adding to its financial achievements, AAF continues to hold a Fitch Rating of A+ with a stable outlook, reflecting its financial stability and sound governance framework. The company’s proactive approach to embedding robust governance practices ensures long-term sustainability and enhances stakeholder confidence.
Rajiv Gunawardana, CEO of Asia Asset Finance PLC, stated, “These outstanding results highlight our dedication to delivering value to our stakeholders while driving sustainable growth. Our strategic focus on innovation, operational excellence, and expanding our footprint ensures that we remain a trusted financial partner for customers across Sri Lanka.”
With its strong performance in the third quarter of FY 2024/25, Asia Asset Finance PLC is poised for continued success. As the only Sri Lankan subsidiary of the global financial giant Muthoot Finance, the company leverages its 54-year legacy to deliver innovative solutions through its extensive network of 100 branches. Adding to its accolades, AAF has been certified as a Great Place to Work, reflecting its commitment to fostering a positive and empowering work environment for employees. This recognition underscores the company’s dedication to excellence not just in financial services but also as an employer of choice in the industry.
AAF’s commitment to excellence and sustainability positions it as a key player in Sri Lanka’s financial sector, setting benchmarks for others to follow. Its unwavering dedication to quality, innovation, and governance ensures a bright future for the company and its stakeholders.
