AFC sets benchmark for SLFRS S1, S2 adoption, reports record results

Friday, 29 August 2025 04:11 - - {{hitsCtrl.values.hits}}


Chairperson Tamara Dharmakirti-Herath	Deputy Chairman/Managing Director Romani De Silva

Alliance Finance Company PLC (AFC) yesterday said it has set a new benchmark in the financial services industry by becoming one of the first institutions in Sri Lanka to fully and voluntarily adopt SLFRS S1 and S2—the local equivalents of the International Sustainability Standards Board’s (ISSB) Global Sustainability Disclosure Standards.

This move reflects AFC’s strong commitment to transparency, climate resilience, and global Environmental, Social, and Governance (ESG) alignment, with its FY2024/25 Annual Report embedding climate and sustainability-related financial disclosures into the company’s core reporting framework.

Complementing this sustainability leadership, AFC recorded its strongest-ever financial performance in the year ending 31 March 2025. The company’s Profit After Tax (PAT) grew 89% to Rs. 1.73 billion, while total assets expanded by 36% to Rs. 81.6 billion, and the Lending portfolio grew to Rs. 62.5 billion, up from Rs. 46.1 billion the previous year.

AFC said it also significantly strengthened its profitability metrics, with Earnings per Share nearly doubling to Rs. 51.45 and Return on Equity reaching 19.84%. Notably, the company achieved one of the lowest Gross Non-Performing Loan (NPL) ratios in the sector at 4.70%, a remarkable improvement from 9.38% the previous year, underscoring its prudent risk management and high-quality portfolio.

Further supporting its sound financial standing, Lanka Rating Agency upgraded AFC’s credit rating from BBB- (Negative) to BBB (Stable).