Asia Asset Finance PLC (AAF) has reported a robust financial and operational performance for the third quarter ending on December 31, 2025. The company exhibited sustained balance sheet growth, enhanced profitability, and reinforced risk buffers amidst a competitive and evolving financial sector landscape.
The total asset base of AAF expanded to Rs. 45.76 billion, representing a 32.73% year-on-year increase. This growth was driven by a healthy portfolio and disciplined asset deployment. The net asset value per share rose to Rs. 35.62, up from Rs. 31.13 in the previous year, highlighting ongoing value creation for shareholders.
During the quarter, AAF’s lending portfolio displayed significant momentum, with the total loan book increasing 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 enhanced credit processing efficiency across the branch network.
The company also saw substantial improvements in profitability metrics. Operating Profit Before Tax surged to Rs. 1,177 million, a 108.16% year-on-year increase, reflecting growth in core income streams and stringent cost management. Profit After Tax rose to 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 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 line 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.
Throughout the quarter, the company pursued a measured expansion strategy, extending its islandwide presence to 111 branches, with plans for 22 additional branches within the financial year to enhance accessibility and customer reach. AAF also maintained its Fitch A+ rating with a Stable Outlook, underscoring its financial strength, governance standards, and risk management framework.
Commenting on the third-quarter results, CEO 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 well-positioned as a trusted financial institution, backed by the Muthoot Group’s 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.
