Tuesday Nov 19, 2024
Tuesday Nov 19, 2024
Tuesday, 12 November 2024 02:22 - - {{hitsCtrl.values.hits}}
Asia Asset Finance PLC (AAF) has delivered a robust financial performance for the six months ending in 2024, demonstrating strong growth and strategic positioning in the market.
In a statement the company said, total asset base expanded to Rs. 32.28 billion, reflecting a 24.74% year-on-year increase, supported by disciplined asset management and a targeted portfolio expansion strategy. The loan portfolio also saw a significant rise of Rs. 5.5 billion, bringing the total to Rs. 26.1 billion as AAF continued to focus on high-quality lending while maintaining strict credit standards.
Net profit rose by 136.5% to Rs. 301.06 million. The company said the growth is attributable to successful lending model and efficient cost management. AAF’s key financial ratios indicate solid performance and stability, with a healthy impairment ratio of 36.71% and a return on equity (ROE) at 16.38%, reflecting the company’s effective capital utilisation. The capital adequacy ratio (CAR) stands at 23.34%, well above the regulatory minimum, ensuring a strong capital buffer to support future growth. The net interest margin (NIM) improved significantly to 9.16%, a 54.1% year-on-year increase, showcasing the company’s effective management of interest rate spreads.
In line with its strategic expansion efforts, AAF increased its branch network to 91 branches, opening six new locations in the last quarter to enhance market penetration and accessibility. The company has also focused on sustainability initiatives, automating the HR and Internal Audit functions, which has reduced paper usage to below 1%. This move aligns with AAF’s commitment to operational efficiency and environmental responsibility, reinforcing its sustainable business model.
AAF continues to uphold its Fitch Rating of A+ with a stable outlook, affirming its financial stability, risk management capabilities, and governance standards. Looking ahead, the company remains committed to maintaining strong performance and enhancing its governance framework for long-term operational sustainability.
Asia Asset Finance PLC CEO Rajiv Gunawardana said: “Our performance for the first half of the year reflects our strategic focus on quality lending, operational efficiency, and sustainable growth. We are committed to delivering value to our shareholders while expanding our reach and impact across Sri Lanka.”
With a strategic and disciplined approach, Asia Asset Finance PLC is well-positioned to capitalise on growth opportunities and continue delivering strong results, solidifying its place in the Sri Lankan financial sector.
