Associated Motor Finance Company PLC (AMF) has reached a historic financial milestone, delivering its strongest-ever performance for the financial year ending 31 March 2025. The company reported a Profit Before Tax (PBT) of Rs. 1.78 billion, reflecting a remarkable 122% increase from the previous year. Profit After Tax (PAT) grew even more impressively, rising by 136% year-on-year to Rs. 750 million, firmly establishing AMF as a resilient, agile, and forward-focused institution within Sri Lanka’s financial services landscape.
Commenting on the achievement, AMF CEO T.M.A. Sallay said, “This was a year that tested our resilience and affirmed our readiness. What set us apart was our ability to move from planning to purposeful execution. We remained focused on our strategic priorities while swiftly adapting to change. The results reflect not only discipline, but unity—employees, partners, and stakeholders working together to turn challenges into real opportunities. It is this shared commitment that continues to drive our growth and transformation.”
During the year under review, AMF’s net interest income surged by 53% to Rs. 3.28 billion, supported by a 12% increase in interest income and a 19% reduction in interest expenses. The lending portfolio recorded strong growth of 23%, reaching Rs. 13.61 billion, while total assets expanded by 10% to Rs. 21.17 billion. Public deposits grew by 7% to Rs. 15.55 billion, a reflection of growing customer confidence. Shareholders’ funds increased by 22% to Rs. 3.97 billion, further strengthening the company’s financial base.
Operational profitability and efficiency also showed significant improvement. The Return on Average Assets (ROA) rose to 8.78%, while Return on Equity (ROE) reached an impressive 20.81%. The Net Interest Margin (NIM) remained robust at 16.21%. Meanwhile, the company’s efficiency ratio improved markedly, falling to 40.82% from 55.46% the previous year, signalling better cost control and productivity gains.
AMF maintained a solid capital position, with a Tier I Capital Ratio of 18.96% and a Total Capital Ratio (Tier II) of 19.24%, both well above the regulatory minimums of 8.5% and 12.5% respectively. Liquidity remained strong throughout the year, with liquid assets covering 87.67% of short-term liabilities, 37.71% of external funds, and 27.10% of total assets. Earnings per share more than doubled to Rs. 6.62, while net asset value per share increased to Rs. 35.01, demonstrating ongoing value creation for shareholders. Reflecting its enhanced risk and financial profile, Lanka Rating upgraded AMF’s credit rating to BB (Stable).
Reflecting on the company’s performance, AMF Chairman Suren Goonewardene noted, “Our performance this year is not just a measure of financial strength—it reflects the resilience and commitment of our people, supported by a clear strategic vision. At a time when Sri Lanka is emerging from a period of significant economic adversity, it is deeply rewarding to know that our efforts are aligned with the national vision for recovery and sustainable development.”
To further enhance financial stability and support future growth, AMF’s Board of Directors has approved the issuance of Listed, Rated, Unsecured Subordinated Redeemable High-Yield Bonds worth Rs. 1.25 billion, subject to regulatory approval. The bonds will be listed on the Colombo Stock Exchange upon receiving the necessary clearances.
Over the past decade, AMF has transformed significantly by embracing digital innovation as a strategic priority. Starting with traditional operations, the company embarked on its digital journey by upgrading core IT infrastructure and implementing enterprise resource planning systems to improve efficiency and data management.
Looking ahead, AMF is committed to driving digital transformation, promoting financial inclusion, and pursuing sustainable growth, positioning itself as a purpose-driven and forward-thinking leader in Sri Lanka’s financial sector.
