Asia Asset Finance PLC (AAF), a subsidiary of Muthoot Finance Limited and a member of the Muthoot Group, recorded a 110% year-on-year increase in Profit After Tax (PAT) to Rs. 838.5 million for the six months ended 30 September 2026, compared with Rs. 400 million in the corresponding period last year.
Profit Before Tax increased by 140% to Rs. 1.62 billion. During the six-month period, interest income grew 75% year-on-year to Rs. 6.86 billion, while net interest income increased 92% to Rs. 3.78 billion. Annualised Return on Equity reached 28.5%.
Commenting on the results, Rajiv Gunawardena, Chief Executive Officer of Asia Asset Finance PLC, said: “Deliberate cost controls and continued digitisation have helped us contain costs and improve efficiency, while prudent allocation of funds to quality assets offering better yields has strengthened profitability. With the commitment of our people and the backing of the Muthoot Group, we remain focused on responsible growth and lasting value for customers and shareholders.”
AAF’s total assets reached Rs. 66.63 billion as at 30 September 2026, an increase of 24% from 31 March 2026. Net loans and advances stood at Rs. 51.88 billion, supported by demand for secured lending, with gold loans accounting for approximately 73% of the lending portfolio.
Deposits increased 37% over the six months to Rs. 35.51 billion, reflecting continued customer confidence. Shareholders’ funds rose 47% during the same period to Rs. 7.01 billion, strengthened by the successful Rs. 1.50 billion rights issue and retained earnings.
Asset quality improved year-on-year, with the gross non-performing loan ratio declining to 7.6%, from 9.4% a year earlier, reflecting continued attention to portfolio quality and risk management.
Through its nationwide network of 125 branches, AAF continues to expand access to financial services. Women represent 56.6% of its active customer base, supporting the company’s focus on financial inclusion and women’s economic empowerment.
With a heritage spanning more than 55 years and a Fitch A+(lka) rating with a Stable Outlook, AAF remains focused on expanding its secured lending portfolio, strengthening digital capabilities and delivering sustainable long-term value to customers, shareholders and the wider Sri Lankan economy.
