Asia Asset Finance makes Rs 115.7 Mn earnings in 1Q

Asia Asset Finance PLC (AAF), financial subsidiary of the global giant Muthoot, posted an exceptional performance in the first quarter reporting earnings of Rs.115.7 Mn compared to Rs.55.2 Mn in the same period in 2023, translating into an impressive 109.75% growth.

The company’s loan portfolio continued its upward trajectory, with Rs.21.8 Bn in loans reported for the quarter ended June 2024, marking a notable increase from Rs.19.05 Bn at the year-end. AAF’s deposits also grew substantially, with Rs.17.5 Bn in new deposits recorded, of which Rs.2.9Bn was raised in the June quarter alone. This growth reflects AAF’s solid reputation and the trust it has garnered among its customers.

AAF’s net interest margin, a critical indicator of its profitability, was maintained at a healthy 8.53%, contributing to the strong financial results for the quarter. The company earned a net interest income of Rs. 447 Bn in the three months, up 10.16% from the previous year, demonstrating the effectiveness of its interest rate management and strategic focus on high-quality loan assets.

Additionally, AAF generated Rs. 237.9 Mn from other service charges, up an impressive 172% from the same period last year, highlighting the success of its diversified revenue streams.

Despite its aggressive growth strategy, AAF has remained vigilant in managing risks. The company provisioned Rs.120.1Mn for potential bad loans during the quarter, ensuring that its balance sheet remains resilient. Moreover, AAF’s Stage 3 loans ratio, representing loans overdue for 90 days or more, improved to 18.9% from 22.1% at the start of the year, reflecting its effective credit risk management practices.

CEO of AAF, Rajiv Gunawardana, noted, “Our strong Q1 results are a testament to the efficacy of our growth strategy and our unwavering commitment to delivering value to our stakeholders.”

“We are well-positioned to continue our upward trajectory and achieve even greater milestones in the coming quarters. Asia Asset Finance PLC outstanding Q1 performance not only sets a strong foundation for the rest of the financial year but also reaffirms its status as a leading financial institution in Sri Lanka, recognized for its excellence and stability.”

Asia Asset Finance is an A+ (Fitch Rated) company with a stable outlook and with a 53 year history.

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