Fintrex Finance PLC delivers strong earnings growth and balance sheet expansion in FY2025/26

Fintrex Finance PLC recorded a significant improvement in financial performance for the year ended 31 March 2026, demonstrating strong operational execution, accelerated business growth, and continued strengthening of its balance sheet fundamentals.

The Company reported a Profit After Tax (PAT) of Rs. 660.6 million for FY2025/26, representing a substantial year-on-year growth of 259%, reflecting improved operating leverage, enhanced net interest margins, and increasing revenue diversification.

The performance underscores the success of the Company’s strategic transformation initiatives and reinforces its positioning as a rapidly growing and increasingly resilient financial institution.

Robust Revenue Growth Supported by Expanding Earning Assets

Gross income for the financial year increased by 79% to LKR 6.74 billion, driven by strong growth in lending volumes, improved portfolio yields, and continued expansion across core business segments.

Interest income grew by 65% to LKR 5.76 billion, while interest expenses increased at a comparatively moderate rate of 37%, enabling the Company to record a 92% increase in Net Interest Income (NII) to LKR 3.35 billion. The improvement reflects disciplined asset-liability management, enhanced pricing strategies, and a strengthening funding profile.

For the quarter ended 31 March 2026, gross income increased by 82% year-on-year to LKR 1.93 billion, while quarterly NII rose by 95% to LKR 963.4 million, further evidencing sustained momentum in core operations and margin expansion.

Total operating income for the year rose by 116% to LKR 4.33 billion, while quarterly operating income increased by 107% to LKR 1.25 billion, reflecting strong topline growth across both funded and non-funded income streams.

Accelerating Fee-Based Income Enhances Revenue Diversification

The Company continued to strengthen its non-interest income base, with net fee and commission income increasing by 324% to LKR 950.3 million during the year.

The strong growth in fee-based income reflects increasing business diversification and a strategic focus on building sustainable, recurring revenue streams beyond conventional lending operations.

For the March 2026 quarter alone, fee and commission income increased by 173% to LKR 282.6 million compared to the corresponding quarter of the previous financial year.

The increasing contribution from fee-based activities has enhanced earnings quality and reduced concentration dependence on interest income, supporting greater long-term earnings resilience.

Profitability Strengthened Amid Higher Scale and Prudential Provisioning

Operating profit before taxes on financial services increased by 190% to LKR 1.51 billion, supported by strong revenue growth despite increased investments in business expansion, technology infrastructure, and operational capabilities.

Impairment provisions increased to LKR 1.03 billion in line with the rapid expansion of the lending portfolio and the Company’s prudent and forward-looking provisioning approach.

Profit before income tax increased by 243% to LKR 1.10 billion, while PAT reached LKR 660.6 million.

Earnings per share (EPS) improved significantly to LKR 2.77 from LKR 0.78 recorded in the previous financial year, reflecting enhanced profitability and improved shareholder value creation.

Balance Sheet Expansion Reflects Strong Business Momentum

Total assets increased by 45% year-on-year to LKR 31.4 billion, supported primarily by strong growth in lending activities and expansion in earning assets.

Loans and advances increased by 76% to LKR 19.46 billion, reflecting continued business acquisition momentum and increased market penetration across selected customer segments.

Lease receivables expanded by 8%, while financial investments increased by 30%, supporting further portfolio diversification and liquidity optimization.

On the liabilities side:

nCustomer deposits increased by 33% to LKR 12.92 billion 

nBorrowings increased by 63% to LKR 11.94 billion to support asset growth and balance sheet scaling 

The Company also maintained stable liquidity conditions during the year, supported by an improved funding mix and reduced reliance on short-term overdraft facilities.

Strengthened Capital Position Enhances Growth Capacity

During the financial year, the Company successfully completed a LKR 500 million share issue, increasing stated capital to LKR 2.87 billion and further strengthening its capital adequacy position.

Total equity increased by 36% to LKR 4.39 billion, supported by both fresh capital infusion and a 172% increase in retained earnings.

The Company further strengthened its long-term funding profile through the earlier issuance of LKR 1 billion in Tier II subordinated debt instruments and the mobilization of LKR 500 million through trust certificates during the year.

These initiatives have enhanced balance sheet resilience, improved funding diversification, and strengthened the Company’s capacity to support future growth.

Strategic Transformation and Forward Outlook

Aligned with its strategic vision of “Smart Finance, Smarter Future,” Fintrex Finance PLC continues to prioritize scalable growth, operational efficiency, digital transformation, and disciplined risk management.

The Company is actively investing in next-generation technology infrastructure, including the migration to a modern core banking platform and the implementation of enhanced Management Information Systems (MIS) and analytics capabilities to support real-time monitoring, improved decision-making, and operational agility.

Under the strategic leadership of the Board of Directors chaired by Ajit Gunewardene, the Company remains focused on strengthening governance standards, enhancing institutional credibility, and delivering sustainable long-term stakeholder value.

Backed by a strengthened capital base, improving profitability, expanding earning assets, and a diversified funding structure, Fintrex Finance PLC is well positioned to sustain its growth trajectory while further reinforcing confidence among investors, banking partners, regulators, and all other stakeholders.