SMB Finance surpasses Rs. 6 b assets in two years of obtaining finance business licence

SMB Finance PLC has unveiled its Annual Report for the financial year 2024, showcasing a strong and sustainable performance in its second year of operations as a licenced finance company. SMB Finance has marked a significant milestone in its journey by surpassing a total asset base of Rs. 6 billion, within a mere two years of obtaining its finance business licence. This achievement exemplifies SMB Finance’s resilient and consistent growth in alignment with its strategic direction, reinforcing its position as a rising force in Sri Lanka’s financial services sector.

The year 2024 proved to be a landmark for SMB Finance, as the company also recorded its highest-ever profit before income tax of Rs. 199.7 million, a 23% increase from Rs. 161.8 million recorded in 2023. Profit after tax also significantly rose to Rs. 151.0 million in 2024 from Rs. 119.9 million in the previous year, reflecting a 26% year-on-year growth. These outstanding results reflect the efficacy of the SMB Finance’s strategic initiatives, prudent financial management reflecting its unwavering commitment to operational excellence and value creation for its stakeholders.

In 2024, SMB Finance PLC demonstrated a strong financial performance across different key indicators. Net operating income surged to Rs. 561 million, up from Rs. 428 million in the previous year, marking a robust 31% year-on-year growth. Earnings per share doubled to Rs. 0.02 from Rs. 0.01 in 2023, reflecting enhanced shareholder value and profitability. Net assets per share also exhibited a modest yet steady improvement, increasing to Rs. 0.38 from Rs. 0.37, a 3% rise, while total equity grew to Rs. 3,638 million from Rs. 3,487 million. Surpassing a total asset base of Rs. 6 billion, the company also recorded a 21% growth in loans and advances in 2024, rising to Rs. 1,783 million from Rs. 1,471 million in the previous year, demonstrating prudent expansion and sustained financial strength anchored in a customer-centric approach.

“Behind every milestone we achieve, there is a team of dedicated professionals. This extraordinary feat stands as a testament to the collective dedication and tireless efforts of the SMB Finance team including the Chief Executive Officer, the Corporate Management team and all employees,” said Chairman Ravi Wijeratne. “I am delighted to report that SMB Finance made the highest-ever profit before income tax of LKR 199.7 million in 2024, reflecting the relevance of our business model and successfully surpassed the Rs. 6 billion total asset base as planned in its second year of operations as a finance company in Sri Lanka. The company expanded its branch network in 2024 to reach a wide customer base covering several provinces of the country that will facilitate the desired growth in 2025 and beyond. Our journey continues with a clear purpose to create sustainable stakeholder value while broadening our reach and emphasising our commitment to financial inclusion and economic empowerment.”

During the year, the company made strategic strides in expanding its geographic footprint, opening four new branches in key cities of Matale, Ambalangoda, Kotahena, and Wellawatte enhancing accessibility and convenience for its growing customer base. This expansion aligns with the company’s mission to provide excellent innovative financial products and services to underserved customers aimed at creating and enhancing the wealth of our society.

The company attributes its stellar performance to a synergistic blend of strategic foresight, experienced leadership, and an agile response to evolving market conditions. Its consistent focus on operational excellence, customer-centric service delivery, prudent financial management practices and sound risk management has positioned SMB Finance to thrive in a volatile and competitive landscape.

Looking ahead, SMB Finance remains confident in its growth trajectory. The company is focused on sustaining its momentum through enhanced customer engagement, investments in talent and technology, and proactive engagement with emerging market opportunities. With a solid foundation, a visionary leadership team, and a clear strategic direction, SMB Finance is poised to deliver long-term value and play a transformative role in the financial services industry of Sri Lanka.