Asia Asset Finance PLC Delivers Strong Q3 Performance with Robust Asset Growth and Profitability Gains

Asia Asset Finance PLC (AAF) recorded a strong financial and operational performance for the third quarter ended 31 December 2025, demonstrating sustained balance sheet expansion, improved profitability, and strengthened risk buffers amid a competitive and evolving financial sector landscape.

The Company’s total asset base grew to Rs. 45.76 billion, reflecting a 32.73% year-on-year increase, driven by healthy portfolio growth and disciplined asset deployment. Net asset value per share improved to Rs. 35.62, up from Rs. 31.13 a year earlier, underscoring continued value creation for shareholders.

AAF’s lending portfolio showed particularly strong momentum during the quarter, with the total loan book expanding by Rs. 13.5 billion to reach Rs. 40.10 billion, marking a 50.93% year-on-year growth. This expansion was supported by focused product strategies, regional penetration, and improved credit processing efficiency across the branch network.

Profitability indicators also strengthened significantly. Operating Profit Before Tax rose to Rs. 1,177 million, recording a 108.16% year-on-year increase, reflecting growth in core income streams and tighter cost discipline. Profit After Tax reached Rs. 680.29 million, up 35.79% year-on-year, while Earnings Per Share (EPS) improved to Rs. 5.48, compared to Rs. 4.03 in the corresponding period last year.

With increased business volumes and profitability, statutory tax contributions also rose accordingly. Income tax expenses increased to Rs. 496.79 million, while VAT on Financial Services amounted to Rs. 533.03 million, reflecting the Company’s higher operating scale and earnings base.

In parallel with portfolio growth, AAF further strengthened its credit risk safeguards. The Provision Coverage Ratio improved to 59.09%, compared to 37.68% a year earlier, indicating a more conservative and resilient provisioning position. Key prudential and performance ratios remained healthy, with Return on Equity (ROE) at 22.12%, Capital Adequacy Ratio (CAR) at 24.83%, and Net Interest Margin (NIM) sustained at 10.70%, supported by prudent funding and pricing strategies.

During the quarter, the Company continued its measured expansion strategy, growing its islandwide footprint to 111 branches, with 22 additional branches planned within the financial year to further improve accessibility and customer reach. AAF also retained its Fitch A+ rating with a Stable Outlook, reaffirming its financial strength, governance standards, and risk management framework.

Commenting on the Q3 results, the Chief Executive Officer Mr. Rajiv Gunawardana stated:

“Our third-quarter performance reflects disciplined growth, strong credit governance, and focused execution across the network. We have expanded our asset base and lending portfolio while simultaneously strengthening our risk buffers and capital position. Our priority remains sustainable, quality growth- expanding access, improving efficiency, and delivering consistent value to customers, depositors, and shareholders.”

Asia Asset Finance PLC remains strongly positioned as a trusted financial institution, backed by the Muthoot Group, a 55-year legacy, a Fitch A+ (Stable Outlook) rating, and a growing islandwide branch network of 111. With disciplined risk management, strong capital strength, and a customer-focused growth strategy, AAF continues to deliver stable and sustainable value to its customers and stakeholders.

source: Adaderana Biz English