Associated Motor Finance Company PLC (AMF) has delivered a strong performance for the nine months ended 31 December 2024. The company recorded significant profitability growth, reinforced balance sheet strength, and maintained a robust liquidity position, demonstrating strategic agility and prudent risk management.
AMF showed resilience despite economic challenges brought on by the COVID-19 pandemic and the 2022 financial crisis. While the industry experienced a decline in lending activity, AMF continued to grow its portfolio, strengthening both capital and liquidity to ensure financial stability.
The company achieved notable growth across key financial indicators. Profit Before Tax (PBT) increased by an impressive 133% to Rs. 781 million, while Profit After Tax (PAT) rose by 135% to Rs. 393 million.
Return on Assets (ROA) and Return on Equity (ROE) stood at 5.25% and 15.25%, respectively. The Capital Base to Risk-Weighted Assets (Tier II) ratio reached 15.49%, exceeding the regulatory minimum requirement of 12.5%—a testament to the company’s profitability and continued improvement.
Total assets expanded to Rs. 20.39 billion, while loans and receivables grew to Rs. 12 billion, reflecting a healthy credit portfolio and increased lending activity. Customer deposits also saw significant growth, reaching Rs. 15.46 billion—a clear sign of sustained customer confidence and trust in the company’s financial strength.
Furthermore, total equity increased by 12% to Rs. 3.63 billion, and the Net Asset Value (NAV) per share rose to Rs. 32.07, reflecting consistent value creation for shareholders. These financial achievements underscore AMF’s strong foundation, prudent risk management, and commitment to delivering long-term value to stakeholders.
The company maintained liquidity well above industry standards, with liquid assets accounting for 31.54% of total assets and a short-term liquidity ratio of 198%, demonstrating its ability to meet immediate obligations with ease.
Recognising AMF’s financial stability and sound governance, Lanka Rating upgraded the company’s credit rating from BB- (Stable) to BB (Stable), affirming its strong fundamentals and effective risk management capabilities.
The company recently appointed Suren Goonewardene as Chairman, reaffirming its commitment to strong leadership in advancing AMF’s market position and financial inclusion efforts. “I am excited to lead AMF towards sustainable growth, customer satisfaction, and market adaptability,” said Goonewardene.
Director/CEO T M A Sallay attributed the company’s success to its customer-centric approach and disciplined governance. “Our performance reflects our team’s dedication and commitment to ethical practices. By balancing growth with prudence, we ensure both stability and agility,” he said.
Looking ahead, AMF plans to expand digital lending, enhance market reach, and invest in technology to streamline operations. With strong capital buffers and liquidity reserves, the company remains committed to financial inclusion and market adaptability.
The Board of Directors comprises Suren Goonewardene (Chairman), Nalatha Dayawansa (Deputy Chairman), Mervyn Sallay (CEO), Shammalka Dayawansa, Shanil Dayawansa, Nilanka Pieris, Ranil Wijegunawardane, and Tauchira Kandamby.
