Asia Asset Finance PLC (AAF) has recorded an exceptional performance for the six months ending 30 September 2025, reaffirming its position as one of Sri Lanka’s most trusted and forward-looking financial institutions. The company reported strong growth across key financial indicators, underpinned by disciplined governance and a continued focus on customer-centred innovation.
Interest income rose by LKR 1.2 billion — a 45% year-on-year increase — supported by strategic product diversification and tight cost management. The Net Interest Margin improved to 11.01%, up from 9.16% in 2024, placing the company close to the industry average of 11.5% as of June 2025.
Profitability recorded a significant upswing, with Profit Before Tax rising by 150% to LKR 983.06 million, compared to LKR 392.56 million a year earlier. Return on Equity increased to 20.12%, surpassing the industry average of 15.2%, reflecting strong capital utilisation and improved shareholder value.
AAF’s lending portfolio grew to LKR 36.7 billion from LKR 24.4 billion, driven largely by expansion in the gold loan segment. Asset quality also improved, with the Non-Performing Loan ratio declining to 9.39% from 16.13%, while provision coverage strengthened to 50.25%. These improvements highlight the company’s robust risk management and credit governance framework.
The company continues to maintain one of the strongest balance sheets in the sector, reporting a Core Capital Adequacy Ratio above 25%, exceeding the industry average of 20%. Net Asset Value per share increased to LKR 33.62 from LKR 29.52 in 2024, indicating stronger profitability and improved shareholder returns.
AAF also expanded its branch network to 107 locations, up from 91 a year earlier, enhancing accessibility and extending financial services to underserved communities across the island.
Commenting on the results, Chief Executive Officer Rajiv Gunawardena said:
“These results go beyond numbers; they reflect discipline, innovation, and the trust our customers place in us. Growth at Asia Asset Finance is not just financial — it’s about empowering people and delivering impact. This achievement belongs to every team member who drives excellence with purpose.”
The company’s performance is further supported by its digital transformation efforts, including Lean-driven process improvements, digital integrations, and the continued expansion of its LuckEwallet platform, which enhances access to digital payments and financial services.
Supported by a Fitch A+(lka) rating and the strength of the Muthoot Finance Group, Asia Asset Finance continues to blend global expertise with local insight as it advances its goal of building a resilient, inclusive, and innovative financial brand for Sri Lanka’s future.
