Asia Asset Finance PLC (AAF), a leading financial institution and subsidiary of global giant Muthoot, posted outstanding financial results for the first quarter of 2024. The company reported earnings of Rs. 115.7 million, marking a remarkable 109.75% increase compared to Rs. 55.2 million in the same period last year.
AAF’s loan portfolio demonstrated strong growth, reaching Rs. 21.8 billion as of the quarter ending June 2024, a significant rise from Rs. 19.05 billion at the close of the previous year. In parallel, the company’s deposits surged to Rs. 17.5 billion, with Rs. 2.9 billion in new deposits raised during the June quarter alone. This reflects the company’s strong reputation and trustworthiness among its customer base.
The company’s profitability remained robust, with a net interest margin of 8.53%, contributing to its positive financial performance. AAF reported a net interest income of Rs. 447 million for the quarter, up 10.16% year-on-year, underscoring its effective interest rate management and focus on high-quality loan assets.
AAF also generated Rs. 237.9 million from other service charges, representing an impressive 172% increase compared to the previous year. This diversification of revenue streams has played a key role in its financial success.
Despite its aggressive growth strategy, AAF maintained prudent risk management, provisioning Rs. 120.1 million for potential bad loans during the quarter to safeguard its balance sheet. The company’s Stage 3 loans ratio, representing loans overdue for 90 days or more, improved from 22.1% at the beginning of the year to 18.9%, reflecting AAF’s enhanced credit risk management.
Rajiv Gunawardana, CEO of Asia Asset Finance, commented, “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.”
Recognized for its financial excellence and stability, Asia Asset Finance is an A+ (Fitch Rated) company with a stable outlook and over 53 years of history. The company’s stellar Q1 performance sets a solid foundation for the rest of the financial year and reaffirms its position as a leading player in Sri Lanka’s financial sector.