Fintrex Finance posts 352% surge in 3Q PAT

Fintrex Finance PLC has reported an exceptional financial performance for the nine months ended 31 December 2025, recording a year-to-date Profit After Tax (PAT) of Rs. 478 million, a 352% increase over the corresponding period last year. The results underscore strong operational momentum, disciplined balance sheet management, and continued strategic transformation.

Gross income for the nine-month period rose 79% year-on-year to Rs. 4.80 billion, with the December 2025 quarter contributing Rs. 1.86 billion — a 94% increase over the comparable quarter. Interest income grew 61% to Rs. 4.11 billion, supported by a significant expansion in earning assets and strong business volumes.

Interest expenses increased at a comparatively moderate 33% to Rs. 1.73 billion, driving a 91% surge in Net Interest Income (NII) to Rs. 2.38 billion. Notably, NII for the December quarter rose 117% to Rs. 955 million, reflecting effective asset–liability management, improved spreads, and strategic repricing across the portfolio.

Net fee and commission income grew 422% year-on-year to Rs. 667.6 million, reflecting successful diversification beyond traditional interest-based revenue streams. In the December quarter alone, fee income increased 306% to Rs. 252.4 million.

Consequently, total operating income for the nine months rose 121% to Rs. 3.08 billion, while Q3 operating income climbed 142% to Rs. 1.21 billion, strengthening the Company’s earnings profile.

Basic and diluted earnings per share (EPS) increased to Rs. 2.02 from Rs. 0.45 in the prior year. For the December quarter, EPS improved to Rs. 0.81 from Rs. 0.18 — a 353% growth.

Impairment provisions increased in line with loan book growth, reflecting conservative IFRS 9 overlays and forward-looking buffers rather than asset quality deterioration. This proactive provision reinforces resilience and positions the Company for sustainable expansion.

Total assets reached Rs. 29.8 billion as at 31 December 2025, up 37% year-on-year, driven by a 68% increase in loans and advances. Customer deposits grew 19% to Rs. 11.6 billion, reaffirming depositor confidence, while diversified borrowings supported asset growth. Liquidity remained healthy with improved funding efficiency and reduced short-term overdraft reliance.

During the year, Fintrex further strengthened its capital position through the issuance of a Rs. 500 million unsecured Tier II Trust Certificate and completion of a rights issue, with proceeds raised pending SEC approval following clearance from the Central Bank of Sri Lanka. A Board-approved forward capital plan supports regulatory compliance and growth over the next three years.

Guided by its strategic theme “Smart Finance, Smarter Future”, Fintrex continued advancing digital initiatives, including mobile-based financing solutions and the launch of a new laptop financing product targeting entrepreneurs, students, and SMEs. The Company is nearing the rollout of its Fintrex Mobile Banking App and digital wallet, alongside migration to a modern core banking system and implementation of a real-time MIS dashboard to enhance analytics and performance oversight.

Under the strategic leadership of its Board, chaired by Ajit Gunewardene, Fintrex remains focused on disciplined growth, robust governance, and long-term value creation.

With strengthened capital buffers, diversified income streams, and sustained profitability momentum, Fintrex Finance PLC is well positioned to deliver sustainable returns and reinforce confidence among banking partners, institutional stakeholders, and high net worth investors.