AMF Doubles Profits, Powers Past Rs. 1.78 billion in Record-Breaking Year

Chairman Suren Goonewardene

CEO T.M.A. Sallay

• Resilience, discipline and inclusive finance strategy drive exceptional growth across all metrics

Associated Motor Finance Company PLC (AMF) has achieved a landmark financial milestone, delivering its strongest-ever performance for the financial year ended 31 March 2025. The company posted a Profit Before Tax (PBT) of Rs. 1.78 billion, representing a remarkable 122% increase over the previous year. Profit After Tax (PAT) soared even higher, rising 136% year-on-year to Rs. 750 million, reinforcing AMF’s emergence as a robust, agile, and forward-focused institution within Sri Lanka’s financial services landscape.

This record-breaking performance reflects not just numerical gains, but a profound and ongoing transformation within the company—rooted in strategic discipline, people-centered values, and an unwavering commitment to delivering inclusive, responsible financial services across diverse customer segments.

A story of resilience and execution:

At the heart of AMF’s success lies its unique approach to navigating a dynamic economic environment. Eschewing short-term thinking, the company focused on long-term value creation through strong internal alignment and execution excellence. As CEO Mr. T.M.A. Sallay explains, “This was a year that tested our resilience and affirmed our readiness. What set us apart was our ability to move from planning to purposeful execution. We stayed focused on our strategic priorities while adapting swiftly to change. The results reflect not only discipline, but unity—employees, partners, and stakeholders working together to turn challenges into real opportunities. It is this shared commitment that continues to drive our growth and transformation.”

This results-driven mindset has enabled AMF to harness the power of its people, technologies, and partnerships to build organizational momentum. Despite a challenging macroeconomic backdrop, the company maintained sharp focus on key priorities including risk management, customer trust, digital transformation, and operational efficiency.

Strong gains across financial and operational metrics:

In terms of core financial performance, AMF recorded a 53% surge in net interest income, rising to Rs. 3.28 billion, supported by a dual strategy of expanding interest income (+12%) and reducing interest expenses (-19%). This reflects not only pricing efficiency, but effective balance sheet and cost-of-funds management.

The company’s lending portfolio grew by 23% to Rs. 13.61 billion, reflecting rising demand for credit across its product categories and segments. Meanwhile, total assets increased by 10% to Rs. 21.17 billion, marking steady and disciplined expansion. Public deposits—a critical indicator of customer confidence and brand trust—grew by 7% to reach Rs. 15.55 billion, demonstrating continued faith in AMF’s stability and performance.

Shareholders’ funds saw a robust increase of 22%, closing at Rs. 3.97 billion. This growth in net worth not only reinforces the company’s strong equity base but also enhances its financial capacity to support future investments and expansion.

Profitability and efficiency indicators reflect significant improvement. The company posted a Return on Average Assets (ROA) of 8.78%, while Return on Equity (ROE) reached an impressive 20.81%, both of which position AMF well above industry norms. The Net Interest Margin (NIM) remained strong at 16.21%, reflecting solid profitability from core lending operations.

A particularly noteworthy achievement was the Bank’s efficiency ratio of 36.7% and the impairment-adjusted efficiency ratio of 40.8%, both significantly outperforming the industry average.

Capital strength and liquidity:

The company maintained a capital adequacy profile well above regulatory requirements, with a Tier I Capital Ratio of 18.96% and Total Capital Ratio (Tier II) of 19.24%, comfortably exceeding the CBSL minimums of 8.5% and 12.5%, respectively. These ratios reflect prudent financial governance and ensure a strong buffer to absorb future uncertainties.

AMF’s liquidity indicators remained equally solid. Liquid Assets to Short-Term Liabilities stood at 87.67%, while Liquid Assets to External Funds and to Total Assets were recorded at 37.71% and 27.10% respectively. These figures underscore the company’s ability to meet short-term obligations without compromising long-term investments.

Shareholder value and credit standing:

The company’s earnings performance translated into tangible gains for shareholders. Earnings per share (EPS) more than doubled to Rs. 6.62, while Net Asset Value (NAV) per share increased to Rs. 35.01. Reflecting improved creditworthiness and institutional resilience, Lanka Rating Agency upgraded AMF’s national credit rating to BB (Stable)—a recognition of its improved risk profile and financial discipline.

Leadership perspective:

Speaking on this exceptional year, Chairman Mr. Suren Goonewardene stated, “Our performance this year is not just a measure of financial strength—it reflects the resilience and commitment of our people, complemented by a clear strategic vision. At a time when Sri Lanka is emerging from a period of significant economic adversity, it is deeply rewarding to know that our efforts are aligned with the national vision for recovery and sustainable development. We will continue to invest in long-term capabilities that enhance value for all stakeholders.”

A heritage of trust, a future of innovation:

stablished in 1962, AMF pioneered two-wheeler financing in Sri Lanka and built a reputation for lean operations and strong customer focus, even without a large branch network. In 2021, the company underwent a significant transformation with the landmark merger with Arpico Finance, one of the island’s oldest finance companies. This strategic move enhanced AMF’s capital base, broadened its lending portfolio, and extended its reach through a network of 12 strategically located branches.

By combining a rich legacy with investments in advanced fintech solutions, AMF today offers a unique blend of trust and innovation—catering to both traditional and next-generation customers.

Ongoing transformation and future direction:

Over the past decade, AMF has embarked on a deliberate journey of digital transformation. From early investments in core IT systems and enterprise resource planning (ERP), the company has consistently enhanced its internal operations and customer interfaces. Going forward, AMF aims to deepen its focus on digital financial services, financial inclusion, and sustainable lending practices. These pillars will shape the company’s trajectory as it continues to evolve into a purpose-driven and future-ready financial institution.

To support its long-term goals, the Board of Directors has approved the issuance of LKR 1.25 billion in Listed Rated Unsecured Subordinated Redeemable High-Yield Bonds, subject to regulatory approval. These bonds will be listed on the Colombo Stock Exchange, providing additional depth to the company’s funding base and supporting future growth initiatives.

AMF’s resurgence is backed by a capable and committed Board of Directors with strong governance credentials and a forward-looking ethos. The current Board includes: Suren Goonewardene (Chairman), Nalatha Dayawansa (Deputy Chairman), Mervyn Sallay (CEO), Shammalka Dayawansa, Shanil Dayawansa, Nilanka Pieris, Ranil Wijegunawardane, and Tauchira Kandamby.

With strong leadership, a customer-first ethos, and a proven ability to adapt and grow, AMF is poised to play a leading role in the next chapter of Sri Lanka’s financial services evolution.