Muthoot-backed Asia Asset Finance delivers 110% growth in first-half profit

Muthoot Finance-backed Asia Asset Finance reported a remarkable 110% rise in profits for the first half of 2026. The Sri Lankan finance company, a member of the Muthoot Group, saw its Profit After Tax surge to Rs. 838.5 million, up from Rs. 400 million in the same period last year.

Their Profit Before Tax jumped 140% to Rs. 1.62 billion. Interest income expanded by 75% to Rs. 6.86 billion, while net interest income grew 92% to Rs. 3.78 billion. This resulted in an impressive annualised Return on Equity of 28.5%.

CEO Rajiv Gunawardena attributed the success to efficient cost controls, ongoing digitalisation, and strategic allocation of funds to high-yield assets. As of 30 September 2026, the company's total assets stood at Rs. 66.63 billion, up 24% from the previous year. Net loans and advances totaled Rs. 51.88 billion, primarily driven by secured lending, with gold loans comprising about 73% of the lending portfolio.

Deposits rose 37% to Rs. 35.51 billion, indicating persistent customer confidence. Shareholders' funds climbed 47% to Rs. 7.01 billion, boosted by a successful Rs. 1.50 billion rights issue and retained earnings. The company's asset quality improved, with the gross non-performing loan ratio dropping to 7.6% from 9.4% a year earlier.

Operating through 125 branches across Sri Lanka, Asia Asset Finance continues to broaden access to financial services. Women make up 56.6% of its active customer base, underscoring the company's commitment to financial inclusion and women's economic empowerment. Established for over 55 years, Asia Asset Finance, with a Fitch A+(lka) rating and Stable Outlook, remains dedicated to expanding secured lending, enhancing digital capabilities, and delivering sustainable long-term value to its customers, shareholders, and the Sri Lankan economy.