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Tuesday, July 1, 2025
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HomeBusinessAsia Asset Finance Caps Off Strong Financial Year with Record Growth and...

Asia Asset Finance Caps Off Strong Financial Year with Record Growth and Strategic Expansion

Asia Asset Finance Caps Off Strong Financial Year with Record Growth and Strategic Expansion

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Asia Asset Finance PLC (AAF), the only Sri Lankan subsidiary of global financial leader Muthoot Finance, has closed the fourth quarter of the 2024/25 financial year on a high note, reporting record growth in profitability and a bold expansion of its operational footprint.

The company’s total asset base rose to Rs. 37.11 billion, marking a 43.58% year-on-year increase. Its loan portfolio expanded by Rs. 10.09 billion to reach Rs. 29.15 billion—an impressive 53% growth—underscoring AAF’s disciplined lending practices and its strong grasp of credit needs across Sri Lanka.

Operational profit before VAT on financial services surged by 95.63% to Rs. 935.5 million, while profit before income tax climbed 70.24% to Rs. 635.8 million. Net profit stood at Rs. 441 million, a 28.17% increase over the previous year.

Earnings per share rose to Rs. 3.55, and net assets per share increased to Rs. 30.43, reflecting enhanced value for shareholders. The company also reported a Return on Equity (ROE) of 12.35% and a healthy Capital Adequacy Ratio (CAR) of 27.47%. Its impairment coverage ratio remained solid at 53.51%, reinforcing AAF’s prudent risk management approach.

Despite a steep rise in taxes—income tax increased by 564.36% and VAT on financial services by 186%—AAF maintained strong profitability, a testament to its operational resilience and efficiency.

The company reached a significant milestone with 100 active branches and plans to open 20 more in the coming financial year, extending its reach into underserved areas and promoting financial inclusion. AAF currently employs over 1,000 staff, with women making up 50% of its workforce—highlighting its commitment to gender equity and inclusive employment.

As a member of Muthoot Finance, one of the world’s largest gold financing institutions, AAF benefits from global best practices, international expertise, and a competitive edge in financial innovation and governance.

Asia Asset Finance’s consistent performance, solid governance, and aggressive expansion strategy position it as a key player in Sri Lanka’s evolving financial landscape—delivering long-term value to customers, shareholders, employees, and the broader economy.

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