PMF Finance nine-month PBT surged by 140 percent to Rs. 456.7 million as the company delivered robust income growth, stronger margins, and expanding lending activity during the nine months ended 31 December 2025.
PMF Finance nine-month PBT surge reflects strong lending growth
PMF Finance PLC reported a sharp improvement in profitability for the nine months ended 31 December 2025, highlighting sustained growth momentum and operational resilience amid a still-challenging economic environment. The company’s performance was underpinned by stronger lending volumes, improved interest margins, and disciplined cost management across its financial services operations.
Gross income for the period rose to Rs. 3.84 billion, reflecting a year-on-year increase of 24.2 percent. This growth was supported by expanding credit demand and a more favourable pricing environment. Net interest income recorded a particularly strong performance, climbing 46.5 percent to Rs. 2.17 billion, driven by improved lending margins and steady loan book expansion.
Operating Profit Before Tax from financial services more than doubled to Rs. 660.6 million, underscoring the effectiveness of the company’s core business strategy. Profit before income tax increased sharply to Rs. 456.7 million, representing a 139 percent rise compared to the corresponding period in the previous year. This marked improvement reflects both revenue growth and enhanced operating efficiency.
After accounting for income tax expenses, PMF Finance posted a net profit of Rs. 266.1 million, up 39.4 percent from Rs. 190.8 million recorded in 2024. Earnings per share improved to Rs. 0.66 from Rs. 0.47 a year earlier, translating into stronger returns for shareholders and reinforcing investor confidence in the company’s growth trajectory.
The balance sheet also demonstrated healthy expansion during the period. Total assets increased to Rs. 23.08 billion, representing a 6.8 percent rise compared to March 2025. Loans and advances grew by 13.4 percent to Rs. 19.47 billion, reflecting continued demand across PMF Finance’s lending portfolio and the company’s ability to deploy capital efficiently.
Equity strengthened to Rs. 3.31 billion, marking an 8.7 percent increase, while net asset value per share improved to Rs. 8.17. The company maintained a debt-to-equity ratio of 5.74 times, slightly improved from 5.93 times previously, indicating prudent leverage management and a balanced approach to growth.
Market performance mirrored the improvement in fundamentals. PMF Finance’s share price closed at Rs. 14.00 at the end of December 2025, nearly doubling from Rs. 7.90 a year earlier. During the period, the stock reached a high of Rs. 19.50, reflecting renewed investor interest driven by stronger financial results and improved earnings visibility.
The company’s shareholder structure remained stable, with Sterling Capital Investments Ltd. retaining a dominant 81.6 percent stake. People’s Bank and People’s Leasing & Finance PLC held 8.3 percent and 2.4 percent respectively. Public shareholding stood at 18.4 percent, with more than 10,900 shareholders, ensuring compliance with Colombo Stock Exchange listing requirements.
Commenting on the results, Chairman Malik Cader said the strong performance reflects resilient growth in core lending operations, improving asset quality, and disciplined cost controls. He noted that the company’s ability to deliver sustained profitability in a demanding operating environment is a testament to the commitment and professionalism of PMF Finance’s management and staff.
He also highlighted the strategic guidance provided by the newly appointed Board of Directors, which has played a key role in steering the company toward sustainable and responsible growth. The Board comprises Malik Cader as Chairman, along with directors Dinesh De Silva, Bandara Rekogama, Nemantha Abeysinghe, Sanjika Perera, Professor Dewasiri N. Jayantha, and Nalin Warnakula.
Looking ahead, PMF Finance stated that its strengthened capital base and liquidity position provide a solid foundation for further expansion in 2026. The company plans to build on its lending momentum while maintaining a cautious approach to risk management, positioning itself to reinforce its standing as a leading player in Sri Lanka’s financial services sector.
With improved profitability, a stronger balance sheet, and growing market confidence, PMF Finance nine-month PBT results signal a company entering the next phase of growth with greater stability and strategic clarity.