Saturday Nov 30, 2024
Saturday Nov 30, 2024
Thursday, 3 November 2022 00:00 - - {{hitsCtrl.values.hits}}
|
Asia Asset Finance CEO Rajiv Gunawardena
|
Asia Asset Finance PLC, Sri Lanka’s only gold-focused financial solutions provider with a history spanning 52 years, posted an impressive 328.57% growth in Profit After Tax (PAT) Year-on-Year.
The company in a statement said it recorded a PAT of Rs. 150 million, up from just Rs. 35 million in the corresponding period in the year prior. Net Interest Income too rose by 79.72% during the period under review to Rs. 913 million, against Rs. 508 million previously, on the back of a tighter monetary environment.
During the six months ended 30 September 2022, Asia Asset Finance was able to successfully expand its branch network to 65 locations countrywide up from 45 locations at the end of September 2021. Asia Asset Finance provides an extensive array of gold-focused financial products and services, and an asset base that exceeds Rs. 22 billion, up from Rs. 17.7 billion at the end of September 2021, an increase of 25%.
Chief Executive Officer Rajiv Gunawardena said: “This year, we have been able to achieve significant growth and performance that has exceeded investor and market expectations due to our concentrated focus on gold-based financial services. Gold continues to remain one of the most stable financial assets in the market and thus we have been able to use this, together with the tightening monetary environment to deliver exceptional value to our customers and investors.”
“We have also taken an innovative approach this year and designed, developed, and launched to market Sri Lanka’s first gold-oriented financial products, which are bound to attract new customers over the rest of the year. We are now intent on maintaining this present momentum and continuing to deliver value to all stakeholders, particularly through a focus on digitalisation and automation.”
“The company has managed to achieve a 25.44% Capital Adequacy Ratio, which is probably one of the best in the entire financial sector, underscoring our robust strength and stability, despite a challenging economic environment,” he added.
Net Non-Performing Loans reduced from 3.43% in the corresponding period in the year prior, to 2.69% in the First Half of FY 2022/23. All of this was achieved concurrently with a 7.68% growth in Total Equity, from Rs. 2.671 billion previously, to Rs. 2.876 billion in the period under review.
As a result, the Net Asset Value Per Share also rose to Rs. 23.16 in the period under review, up from Rs. 21.50, previously. The company managed to maintain all key ratios within very healthy limits and among the best in the industry.
Asia Asset Finance is owned by Muthoot Finance, an India-based global financial services giant, with over Rs. 2.54 trillion worth of assets, worldwide. Muthoot Finance posted profits exceeding Rs. 100 billion from its global operations this year, an amount larger than the total profits made by all finance companies in Sri Lanka, combined.
This achievement by its parent company underscores Asia Asset Finance PLC’s strength, stability and reliability, being backed by a truly global financial services giant, the company said in its statement.
