Associated Motor Finance posts impressive financial performance in FY22

Friday, 8 July 2022 01:03 - - {{hitsCtrl.values.hits}}

CEO T.M.A. Sallay

One of Sri Lanka’s oldest finance companies, founded in 1962, Associated Motor Finance Company PLC (AMF) has delivered a resilient financial performance during FY 2021/22, despite an uncertain economic environment.

Supported by the merged Company’s committed workforce and prudent management strategies, the Company’s Profit Before Tax (PBT) rose to Rs. 492 million in FY 2021/2022. The Liquid Asset to Deposit Ratio stands at a significant 37.65%, indicating the company’s healthy financial standing highlighting their ability to pay off obligations through liquid assets.

Achieving another strategic milestone in its transformational journey, AMF’s rights issue in 2021 to raise Rs. 500 million in equity was oversubscribed further strengthening its core capital requirements to be fully compliant with CBSL requirements. The rights issue oversubscription points towards the improving financial stability and trust of AMF and the Company’s ability to move steadily forward with its five-year strategic plan. The Company’s Core Capital grew up to Rs. 2.624 billion during the period under review. Both Tier I and Tier II Capital Ratios too witnessed a growth, rising to 14.9% and 15.8%, respectively well above the statutory minimums

Discussing the financial performance, CEO T.M.A. Sallay said: “We are pleased to inform our investors and other stakeholders that we have achieved and exceeded the targets we had set for the financial year 2021/22. Through delivering exceptional value to all stakeholders, we were able to end the year on a high note.”

“Throughout the pandemic, and other past and present challenges, we have consistently made timely interest payments to our valued depositors. We have ensured our shareholders’ interests are taken care of and always looked-after our employees. Thus, we take this opportunity to reassure all stakeholders that AMF will continue this momentum to deliver exceptional value to all its stakeholders,” Sallay further added.

AMF marked a major milestone in its journey last year when the company merged with Arpico Finance Company PLC to become a single entity and one of the strongest in the industry. AMF has leveraged its new position of strength to steer through tough times with resilience and further consolidated its position as a result.

Through emerging synergies from this union, AMF now caters to a wider clientele across different market segments with an island wide branch network, covering 12 strategic cities and townships, as well as its extensive dealer network. The Company’s diverse portfolio of financial products and services include leasing, mortgage loans, personal loans, time and savings deposits, alternative finance, and other associated services. The management of AMF remains optimistic and confident about carrying forward the success into the future and delivering results for all stakeholders.