Asia Asset Finance PLC recorded a 203% increase in Profit Before Tax to Rs. 1.93 billion for the financial year ended 31 March, supported by stronger interest income, wider net interest income, balance sheet expansion, and improved asset quality.

Net Profit for the year rose 135.4% to Rs. 1.04 billion, while Operating Profit before VAT on Financial Services increased 196.3% to Rs. 2.77 billion. Basic Earnings Per Share improved to Rs. 8.36 from Rs. 3.55 in the previous year.

The company’s total asset base increased to Rs. 53.78 billion from Rs. 37.11 billion a year earlier, reflecting growth in its loan portfolio. Interest Income rose 52.6% to Rs. 9.11 billion, while Net Interest Income increased 88.5% to Rs. 4.93 billion.

The fourth quarter also showed a sharp turnaround. Interest Income for the quarter rose 66.9% year-on-year to Rs. 2.84 billion, while Net Interest Income increased 101.7% to Rs. 1.65 billion. Net Profit for the quarter stood at Rs. 358.1 million, compared with a net loss of Rs. 72.7 million in the corresponding quarter of the previous year.

Asia Asset Finance also reported an improvement in asset quality, with Net Non-Performing Accommodations falling to 2.37% from 6.00%. Gross Non-Performing Accommodations improved to 6.04% from 12.53%.

The company’s Tier 1 Capital Adequacy Ratio stood at 24.57%, above the statutory requirement, while its Liquid asset ratio was 137.91%.

Asia Asset Finance said it had fully utilised Rs. 2 billion in debenture proceeds to expand its gold loan portfolio. The company enters the new financial year with a 115-branch network, a Fitch ‘A+’ Stable rating, and Great Place to Work certification.