Asia Asset Finance 6M PBT up 150% YoY to Rs. 980 m

Monday, 1 December 2025 03:34 - - {{hitsCtrl.values.hits}}

Asia Asset Finance PLC (AAF) has reported a remarkable performance for the six months ended 30 September 2025, with Profit Before Tax (PBT) increasing by 150% year-on-year (YoY) to Rs. 983.06 million, compared to Rs. 392.56 million a year earlier. This growth reflects stronger portfolio quality, efficient credit underwriting, and operational excellence.

Return on Equity (ROE) rose to 20.12%, outperforming the industry average of 15.2%,

Interest income rose by Rs. 1.2 billion, a 45% year-on-year increase, driven by strategic product diversification and tight cost control. The Net Interest Margin (NIM) improved to 11.01%, up from 9.16% in 2024, placing AAF near the industry average of 11.5% as of June 2025.

The company’s lending portfolio expanded to Rs. 36.7 billion from Rs. 24.4 billion, led primarily by the growth of its gold loan segment. Asset quality continued to strengthen, with the Non-Performing Loan (NPL) ratio improving to 9.39% from 16.13%, and the provision coverage ratio rising to 50.25% from 37.11%. These gains reflect AAF’s robust risk management and credit governance framework.

Maintaining one of the strongest and healthiest balance sheets, AAF reported a Core Capital Adequacy Ratio above 25%, exceeding the industry average of 20%, alongside a capital-to-deposit ratio of 19%. The Net Asset Value per share rose to Rs. 33.62 from Rs. 29.52 in 2024, reflecting improved profitability and shareholder returns. These figures underscore prudent capital management, financial resilience, and consistent regulatory compliance.

Reinforcing its island-wide presence, AAF expanded its branch network to 107 locations, up from 91 in September 2024. This expansion supports the company’s mission to enhance accessibility, strengthen regional service, and reach underbanked communities across Sri Lanka.

Asia Asset Finance CEO Rajiv Gunawardena said: “These results go beyond numbers; they reflect discipline, innovation, and the trust our customers place in us. At Asia Asset Finance, growth is not just financial; it’s about empowering people and delivering real impact. This achievement belongs to every team member who continues to drive excellence with purpose.”

Asia Asset Finance’s success is also rooted in its commitment to digital transformation. Through Lean-driven process improvements and advanced digital integrations, the company has enhanced efficiency, transparency, and turnaround times. Its LuckEwallet platform continues to expand access to digital payments and financial services, reflecting AAF’s evolution into a customer-first, future-ready institution.

The company has a Fitch A+(lka) rating and is backed by the Muthoot Finance Group.