Asia Asset Finance announces impressive 3Q performance

Thursday, 30 January 2025 00:12 - - {{hitsCtrl.values.hits}}

Chairman V.A. Prasanth (left) and CEO Rajiv Gunawardana

Asia Asset Finance PLC (AAF) has announced a stellar financial performance for the nine months ending 31 December 2024.

The total asset base of AAF has surged to Rs. 34.48 billion, reflecting a 33.2% increase compared to the previous year. This growth has been bolstered by a robust expansion of the loan portfolio, which grew by Rs. 7.8 billion to reach Rs. 28.4 billion.

The company’s profitability also witnessed an extraordinary boost, with profit after tax rising to Rs. 500.97 million — a staggering 123.54% year-on-year improvement.

AAF has achieved a healthy impairment ratio of 37.68%, demonstrating its effective credit risk management practices. Additionally, the return on equity (ROE) stands at a strong 16.81%, underscoring efficient utilisation of shareholder funds. The company’s capital adequacy ratio (CAR) remains well above statutory requirements at 22.72%, while the net interest margin (NIM) was sustained at a solid 9.42%, reflecting consistent profitability from core operations.

In a significant move toward enhancing customer accessibility, AAF expanded its branch network to 100 locations, adding nine new branches in the last quarter alone. This expansion aligns with the company’s strategic vision of strengthening its presence across Sri Lanka. Simultaneously, the company has prioritised operational sustainability, successfully automating its Human Resources and Internal Audit departments. This transition has reduced paper usage in these areas to less than 1%, exemplifying AAF’s commitment to sustainable business practices.

Adding to its financial achievements, AAF continues to enjoy a Fitch Rating of A+ with a stable outlook, reflecting its financial stability and sound governance framework. The company’s proactive focus on embedding robust governance practices ensures long-term sustainability and builds stakeholder confidence.

Asia Asset Finance PLC CEO Rajiv Gunawardana said: “These outstanding results highlight our dedication to delivering value to our stakeholders while driving sustainable growth. Our strategic focus on innovation, operational excellence, and expanding our footprint ensures that we remain a trusted financial partner for customers across Sri Lanka.”

With its strong performance in the third quarter of FY 2024/25, Asia Asset Finance said it is poised for continued success. As the only Sri Lankan subsidiary of the global financial giant Muthoot Finance, the company leverages its 54-year legacy to deliver innovative solutions.

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