Asia Asset Finance PLC has reported impressive financial results for the fiscal year ending March 31, 2026, showcasing substantial advancements in profitability, asset expansion, gross revenue, asset quality, capital strength, and strategic growth initiatives. These results underscore the company’s commitment to prudent lending practices, operational efficiency, effective risk management, and its dedication to creating long-term value for customers, shareholders, employees, and the communities it serves throughout Sri Lanka.
In the fiscal year analyzed, the company’s total assets surged to LKR 53.78 billion, a notable increase from LKR 37.11 billion the previous year, indicating a robust expansion of its balance sheet driven by careful growth in its loan portfolio. Interest income experienced a remarkable increase of 52.6%, reaching LKR 9,114.7 million, while net interest income skyrocketed by 88.5% to LKR 4,934.6 million. This growth illustrates the company’s capacity to maintain healthy interest spreads and generate significant income as its operations expand.
The company demonstrated exceptional profitability improvements, with operating profit before VAT on financial services soaring by 196.3% to LKR 2,772.3 million. Profit before income tax surged by 203.0% to LKR 1,926.1 million, and the net profit for the year climbed to LKR 1,038.4 million, marking a robust year-on-year increase of 135.4%. Basic earnings per share rose to Rs. 8.36, up from Rs. 3.55 the prior year.
Mr. Rajiv Gunawardana, the Chief Executive Officer of Asia Asset Finance PLC, commented on the results, stating, “The outstanding performance achieved in FY2025/26 demonstrates the resilience of our business model, the dedication of our team, and the confidence our customers have in us throughout Sri Lanka. Our emphasis has consistently been on disciplined growth, responsible lending, operational excellence, and sustainable value creation. Looking ahead, Asia Asset Finance will persist in reinforcing its role as a reliable financial partner, broadening access to effective financial solutions while significantly contributing to the nation’s economic development.”
The fourth quarter exemplified the company’s growth trajectory. Interest income for Q4 reached LKR 2,841.0 million, reflecting a 66.9% increase from the previous year, and net interest income rose by 101.7% to LKR 1,654.6 million. The net profit for the quarter was LKR 358.1 million, a substantial turnaround from a net loss of LKR 72.7 million recorded in Q4 of FY2024/25, indicating a strong recovery and operational strength.
Asia Asset Finance also made significant strides in asset quality, with net non-performing accommodations improving to 2.37% from 6.00%, and gross non-performing accommodations decreasing to 6.04% from 12.53%. The company’s Tier 1 capital adequacy ratio was reported at 24.57%, well above the regulatory minimum, while its liquid asset ratio remained robust at 137.91%.
With a network of 115 branches, a continued Fitch A+ Stable rating, certification as a Great Place to Work, and full utilization of LKR 2 billion in debenture proceeds to enhance its gold loan offerings, Asia Asset Finance PLC is poised to enter the new financial year with confidence, resilience, and a clear strategic vision.
