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Asia Asset Finance PAT soars to Rs. 150 mn 

03 Nov 2022

Asia Asset Finance PLC stated that it posted a 328.57% year-on-year (YoY) growth in profit after tax (PAT) of Rs. 150 million, up from Rs. 35 million in the corresponding period in the year prior.  Accordingly, net Interest income too rose by 79.72% during the period under review to Rs. 913 million, against Rs. 508 million previously, on the back of a tighter monetary environment.  Commenting on Asia Asset Finance PLC’s performance in the first six months of FY 2022/23, Chief Executive Officer (CEO) Rajiv Gunawardena said: “This year, we have been able to achieve significant growth and performance that has exceeded investor and market expectations due to our concentrated focus on gold-based financial services. Gold continues to remain one of the most stable financial assets in the market, and thus we have been able to use this, together with the tightening monetary environment to deliver exceptional value to our customers and investors.  “We have also taken an innovative approach this year and designed, developed, and launched to market Sri Lanka’s first gold-oriented financial products, which are bound to attract new customers over the rest of the year. We are now intent on maintaining this present momentum and continuing to deliver value to all stakeholders, particularly through a focus on digitalisation and automation.  “I am also pleased to note that the company has managed to achieve a 25.44% capital adequacy ratio, which is probably one of the best in the entire financial sector, underscoring our robust strength and stability, despite a challenging economic environment.” Also, during the six months that ended 30 September 2022, Asia Asset Finance PLC was able to expand its branch network to 65 locations islandwide, up from 45 locations at the end of September 2021. Asia Asset Finance PLC is owned by Muthoot Finance, an India-based global financial services giant, with over Rs. 2.54 trillion worth of assets, worldwide. Muthoot Finance posted profits exceeding Rs. 100 billion from its global operations this year, an amount larger than the total profits made by all finance companies in Sri Lanka, combined. This achievement by its parent company underscores Asia Asset Finance PLC’s strength, stability, and reliability, being backed by a truly global financial services giant.  Asia Asset Finance PLC fared well across other key financial indicators too during the period under review, with net non-performing loans reducing from 3.43% in the corresponding period in the year prior, to 2.69% in the first half of FY 2022/23. All of this was achieved concurrently with a 7.68% growth in total equity, from Rs. 2.671 billion previously to Rs. 2.876 billion in the period under review. As a result, the net asset value per share also rose to Rs. 23.16 in the period under review, up from Rs. 21.50, previously. The company managed to maintain all key ratios within very healthy limits and among the best in the industry.       


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