Asia Asset Finance PLC (AAF) has reported a remarkable performance for the six months ended 30 September 2025, reaffirming its position as one of Sri Lanka’s most trusted and forward looking financial institutions.
The results highlight exceptional growth, disciplined governance, and a sustained commitment to customer-focused innovation, built on over five decades of financial leadership.
Interest income rose by LKR 1.2 billion, a 45% year-on-year increase, driven by strategic product diversification and tight cost control. The Net Interest Margin (NIM) improved to 11.01%, up from 9.16% in 2024, placing AAF near the industry average of 11.5% as of June 2025.
Profitability surged, with Profit Before Tax (PBT) increasing by 150% to LKR 983.06 million, compared to LKR 392.56 million a year earlier. This impressive growth reflects stronger portfolio quality, efficient credit underwriting, and operational excellence.
Return on Equity (ROE) rose to 20.12%, outperforming the industry average of 15.2%, showcasing effective capital use and enhanced shareholder value.
The company’s lending portfolio expanded to LKR 36.7 billion from LKR 24.4 billion, led primarily by the growth of its gold loan segment. Asset quality continued to strengthen, with the Non-Performing Loan (NPL) ratio improving to 9.39% from 16.13%, and the provision coverage ratio rising to 50.25% from 37.11%.
These gains reflect AAF’s robust risk management and credit governance framework.
Maintaining one of the strongest and healthiest balance sheets, AAF reported a Core Capital Adequacy Ratio above 25%, exceeding the industry average of 20%, alongside a capital-to-deposit ratio of 19%. The Net Asset Value per share rose to LKR 33.62 from LKR 29.52 in 2024, reflecting improved profitability and shareholder returns.
These figures underscore prudent capital management, financial resilience, and consistent regulatory compliance. Reinforcing its islandwide presence, AAF expanded its branch network to 107 locations, up from 91 in September 2024.
This expansion supports the company’s mission to enhance accessibility, strengthen regional service, and reach underbanked communities across Sri Lanka.
Commenting on the results, Rajiv Gunawardena, Chief Executive Officer of Asia Asset Finance PLC, stated: “These results go beyond numbers; they reflect discipline, innovation, and the trust our customers place in us. At Asia Asset Finance, growth is not just financial; it’s about empowering people and delivering real impact.
This achievement belongs to every team member who continues to drive excellence with purpose.” Asia Asset Finance’s success is also rooted in its commitment to digital transformation.
Through Lean-driven process improvements and advanced digital integrations, the company has enhanced efficiency, transparency, and turnaround times.
Its LuckEwallet platform continues to expand access to digital payments and financial services, reflecting AAF’s evolution into a customer-first, future-ready institution. Backed by a Fitch A+(lka) rating and the strength of the Muthoot Finance Group, Asia Asset Finance continues to blend global expertise with local insight — building a stable, innovative, and inclusive financial brand for the future.
Asia Asset Finance PLC; Trust you can verify. Impact you can feel. Execution you can measure.
Source: The Morning