Asia Asset Finance caps off strong FY with record growth, strategic expansion

Tuesday, 24 June 2025 02:51 - - {{hitsCtrl.values.hits}}

Chairman V.A. Prasanth (left) and CEO Rajiv Gunawardana

Asia Asset Finance PLC (AAF), the subsidiary of the global financial powerhouse Muthoot Finance, said yesterday it has concluded the fourth quarter of the 2024/25 financial year with significant improvements in operational profits, reinforcing its position as a trusted and performance-driven financial institution in Sri Lanka.

In a statement AAF said its Total Asset Base surged to Rs. 37.11 billion, reflecting a 43.58% increase year-on-year, while its Loan Portfolio expanded by Rs. 10.09 billion to reach Rs. 29.15 billion, a 53% growth. These figures highlight the company’s disciplined approach to lending and its deep understanding of customer credit needs across the country.

Operational profit before VAT on financial services reached Rs. 935.5 million, up 95.63% YoY, and Profit Before Income Tax rose to Rs. 635.8 million, an increase of 70.24%. Net Profit grew to Rs. 441 million, reflecting a 28.17% improvement compared to the previous year.

The company’s Earnings Per Share increased to Rs. 3.55, while Net Assets per Share improved to Rs. 30.43, both indicating strong shareholder value creation.

The statement also said AAF continues to uphold financial prudence, with a Return on Equity (ROE) of 12.35%, a robust Capital Adequacy Ratio (CAR) of 27.47%, and with the impairment coverage ratio remaining strong at 53.51%, reflecting the company’s prudent risk management practices.

Even with increased regulatory taxes — including a 564.36% rise in income tax and a 186% increase in VAT on financial services — the company’s profitability has remained resilient, a testament to its operational efficiency.

AAF reached a major operational milestone with 100 active branches, with 20 additional branches planned for the upcoming financial year, further expanding its reach across urban and rural Sri Lanka ensuring financial inclusion and ‘banking the unbanked’. The company have employed over 1000 staff members; of whom 50% are female staff, providing equal employment opportunities to people across the country.

The company continues to leverage the strength of being part of Muthoot Finance, one of the world’s largest gold financing institutions, providing Asia Asset Finance with international expertise, global best practices, and a competitive edge in product innovation and governance.

AAF’s consistent performance, governance strength, and aggressive expansion strategy position it to thrive in a dynamic financial landscape, creating long-term value for customers, employees, shareholders, and Sri Lanka’s economy.

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