Alliance Finance records solid performance in challenging year

Deputy Chairman/Managing Director Romani de Silva

Chairperson Tamara Dharmakirti Herath

Alliance Finance Company PLC (AFC), has recorded a solid financial performance for the fiscal year 2023/24. 

Amid economic challenges, AFC in a statement said it demonstrated remarkable growth and resilience, a testament to its strategic focus on sustainable finance and robust governance. The financial results for FY 2023/24 reveal substantial progress compared to the previous year, with Profit After Tax climbing by an overwhelming 81.59% to Rs. 917 million. Profit Before Tax saw a growth of 78.59% to Rs. 1,698 million, Interest Income increased by 10.36% to Rs. 13,185 million and net interest income rose by 29.80% to Rs. 5,887 million. Additionally, AFC’s financial position has significantly strengthened, with total assets up by 15.17% to Rs. 60,175 million, the lending portfolio increasing by 18.21% to Rs. 46,104 million, shareholder’s equity rising by 16.83% to Rs. 8,129 million, Earnings per share improving by 81.59% to Rs. 27.21, and gross NPL decreasing by 3.74% to 9.38%.

AFC’s performance is not solely measured by its financial success but also by its unwavering dedication to sustainability and ESG (Environmental, Social and Governance) principles. The company’s 360-degree approach to ESG integration spans across all operations, strategies, and the value chain, ensuring that sustainability is deeply embedded in its core business model. Alliance Finance Co. PLC has become the first financial institution in South Asia to receive the SSCI Certification, the world’s first measurable and certifiable standard for value driven financial institutions with holistic sustainability integration to the business. This holistic approach goes beyond traditional corporate social responsibility initiatives and mere reporting standards aiming to create enduring value for multiple stakeholders of the company with a strong emphasis on society and the environment. AFC is committed to addressing sustainability challenges through innovative products and services that minimise environmental impact, conserve resources, promote social well-being, and align with evolving customer expectations for sustainability.

AFC Chairperson Tamara Dharmakirti-Herath said: “Throughout the year under review, AFC made good headway in further strengthening its position as the leader in sustainable financing in our core markets. Anchored to our purpose, we remained firm in our endeavour to empower MSME sector expansion.” 

AFC Deputy Chairman/Managing Director Romani de Silva said:  “AFC continued to solidify its position in the local NBFI with an impressive financial performance for FY 2023/24, which I believe points to the deployment of timely and well-planned strategic interventions to ensure sustained earnings regardless of economic vagaries.”

AFC’s purpose is to “Make the world a better place through sustainable finance.” This purpose drives the company to align its operations with the United Nations Sustainable Development Goals (SDGs), National Development Agenda Goals and to focus on creating value for all stakeholders through sustainable business practices.

AFC’s sustainability-centric business model is evident in its continuous efforts to improve practices, set ambitious goals, and adapt strategies based on new insights and emerging sustainability trends. This approach ensures that sustainability remains at the heart of AFC’s operations, driving positive change and creating long-term value. Recognising that short-term transactional relationships may yield immediate gains but fail to establish enduring customer loyalty and competitive advantage, AFC prioritises fostering long-term relationships to achieve high-impact goals, targets, and sustained profitability. Through collaborative engagement involving every department of the organisation, AFC aims to realise its sustainability-integrated business model, strengthening its value propositions, customer loyalty, competitive advantage and long-term profitability.

Alliance Finance boasts a legacy of over 68 years of serving its loyal customers, supporting financial inclusion, and promoting sustainability. Incorporated in 1956 as a licensed finance company under the Central Bank of Sri Lanka, AFC operates with an island-wide network of 90 points of presence and a dedicated, performance-driven team of 1,740 employees. AFC’s vision is to foster growth and prosperity for its customers while building trust and long-lasting relationships. Environmental and sustainability initiatives are at the center of AFC’s agenda, embodying the company’s drive to support both local and global sustainability priorities.

As AFC continues its journey towards greater sustainability, the company said it remains focused on its commitment to the United Nations Sustainable Development Goals. This dedication ensures that AFC’s efforts are aligned with global sustainability priorities, driving positive outcomes for people, prosperity, peace, partnership, and the planet. Through its purpose-driven approach, AFC is determined to deliver value and foster positive change for all its stakeholders.