Asia Asset Finance PLC (AAF) has delivered an exceptional opening quarter for FY2026/27, recording strong growth across profitability, income, assets and shareholder returns for the three months ended 30 June 2026.

Profit Before Tax surged 197.8% year-on-year to Rs. 877.9 million, compared with Rs. 294.8 million in the corresponding period of the previous year. Profit After Tax increased 137.0% to Rs. 429.4 million, from Rs. 181.2 million, reflecting the strength of the Company’s core operations and disciplined execution of its growth strategy.

Interest Income rose 85.4% to Rs. 3.40 billion, while Net Interest Income more than doubled to Rs. 1.97 billion, representing growth of 120.0%. The annualised Net Interest Margin expanded to 13.9%, from 10.6%, demonstrating improved returns from the Company’s interest-earning asset base.

AAF’s total assets expanded by 12.3% during the quarter to Rs. 60.42 billion. Its loan portfolio increased by Rs. 3.51 billion to Rs. 50.51 billion, highlighting sustained customer demand and continued momentum across the Company’s lending operations.

Commenting on the performance, Asia Asset Finance PLC CEO Rajiv Gunawardena said:

"Our strong first-quarter performance reaffirms the resilience of our business model, combining an expanding island-wide presence, customer-focused solutions and disciplined risk management. It demonstrates our ability to grow responsibly while advancing financial inclusion and extending formal financial services to underserved communities. Supported by our dedicated employees and the trust of our stakeholders, we remain focused on service excellence, sustainable growth and creating lasting value for the communities and economy we serve.”

Shareholder indicators strengthened considerably, with Earnings Per Share rising to Rs. 3.46, from Rs. 1.46. Net Asset Value per Share increased 31.1% to Rs. 41.89, while annualised Return on Equity improved to 34.4% and Return on Assets rose to 3.0%.

Asset quality recorded a marked improvement. The Gross Non-Performing Asset Ratio progressed to 7.5%, from 12.5%, while the Net Non-Performing Asset Ratio improved to 4.2%, from 6.6%. Tier 1 Capital Adequacy stood at 18.96% and Total Capital Adequacy at 18.85%, comfortably above regulatory minimums.

During the quarter, AAF opened five new branches, expanding its island-wide network to 120 branches, and established a new training centre in Kurunegala to strengthen employee development and service capabilities.

The performance is further reinforced by Asia Asset Finance’s distinctive corporate strengths: a Fitch A+(lka) rating with a Stable Outlook, more than 55 years of financial heritage, and its position as the only Sri Lankan subsidiary of Muthoot Finance. Together with its expanding island-wide presence, disciplined underwriting, improving asset quality and well-capitalised balance sheet, these strengths position AAF to sustain its growth momentum and build an even stronger future.