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. The company’s total asset base expanded to LKR 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 LKR 5.5 billion, bringing the total to LKR 26.1 billion as AAF continued to focus on high-quality lending while maintaining strict credit standards.

Profitability surged, with net profit increasing to LKR 301.06 million, a 136.49% improvement compared to the previous year. This growth is attributed to the company’s 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 utilization. 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.

Rajiv Gunawardana, CEO of Asia Asset Finance PLC, stated, "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 capitalize on growth opportunities and continue delivering strong results, solidifying its place in the Sri Lankan financial sector.