Monday, October 2, 2023

Asia Asset Finance PLC PAT Soars Over 328% (YOY) and Asset Base grown by 25% in First Half of FY 2022/23

* PBT- 197.5%

* CAR-  25.44%

* Gold Loan Growth- 71.63% * New branch total 65

* New branch total 65

Asia Asset Finance PLC, Sri Lanka’s only gold-focused financial solutions provider with a history spanning 52 years, posted an impressive 328.57% growth in Profit After Tax (PAT) Year on Year. Accordingly, the Company recorded a PAT of LKR 150 million, up from just LKR 35 million in the corresponding period in the year prior. Net Interest Income too rose by 79.72% during the period under review to LKR 913 million, against LKR 508 million previously, on the back of a tighter monetary environment. Also, notably, during the 6 months ended 30th September 2022, Asia Asset Finance PLC was able to successfully expand its branch network to 65 locations islandwide, up from 45 locations at the end of September 2021.

Asia Asset Finance PLC has established itself as a premier licensed finance company in Sri Lanka with an extensive array of gold-focused financial products and services, and an asset base that exceeds LKR 22 billion, up from LKR 17.7 billion at the end of September 2021, an increase of 25%. Asia Asset Finance PLC is owned by Muthoot Finance, an India-based global financial services giant, with over LKR 2.54 trillion worth of assets, worldwide. Muthoot Finance posted profits exceeding LKR 100 billion from its global operations this year, an amount larger than the total profits made by all finance companies in Sri Lanka, combined. This achievement by its parent company underscores Asia Asset Finance PLC’s strength, stability and reliability, being backed by a truly global financial services giant.

Chief Executive Officer, Mr. Rajiv Gunawardena

Commenting on Asia Asset Finance PLC’s commendable performance in just the first 6 months of FY 2022/23, Chief Executive Officer, Mr. Rajiv Gunawardena said, “This year, we have been able to achieve significant growth and performance that has exceeded investor and market expectations due to our concentrated focus on gold-based financial services. Gold continues to remain one of the most stable financial assets in the market, and thus we have been able to use this, together with the tightening monetary environment to deliver exceptional value to our customers and investors. We have also taken an innovative approach this year and designed, developed, and launched to market Sri Lanka’s first gold-oriented financial products, which are bound to attract new customers over the rest of the year. We are now intent on maintaining this present momentum and continuing to deliver value to all stakeholders, particularly through a focus on digitalization and automation. I am also pleased to note that the Company has managed to achieve a 25.44% Capital Adequacy Ratio, which is probably one of the best in the entire financial sector, underscoring our robust strength and stability, despite a challenging economic environment.”

In keeping with its digitalization and digitization goals, driven by the Company’s focus on sustainability, Asia Asset Finance PLC implemented its GoGreen Policy, which has reduced our carbon footprint by almost 70% in comparison to the previous year.

Asia Asset Finance PLC fared exceptionally well across other key financial indicators too during the period under review, with Net Non-Performing Loans reducing from 3.43% in the corresponding period in the year prior, to 2.69% in the First Half of FY 2022/23. All of this was achieved concurrently with a 7.68% growth in Total Equity, from LKR 2.671 billion previously, to LKR 2.876 billion in the period under review. As a result, the Net Asset Value Per Share also rose to LKR 23.16 in the period under review, up from LKR 21.50, previously. The Company managed to maintain all key ratios within very healthy limits, and among the best in the industry.

Asia Asset Finance PLC is a Non-Banking Financial Institution (NBFI) and a Licensed Finance Company (LFC), registered with the Central Bank of Sri Lanka, having commenced operations in 1970, with a focus on Gold-Based Financial Products and Services, catering to both depositors and borrowers. Asia Asset Finance PLC wide array of financial services includes Gold Loans, Fixed Deposits, Leasing, Mortgages and Digital Financial Services via the Asia Asset Finance App (LUCKEWALLET).

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