Asia Asset Finance PLC (AAF) nearly tripled its Profit Before Tax (PBT) during the first quarter of FY2026/27 as lending growth and higher interest income lifted earnings.
The company reported a Profit Before Tax of Rs. 877.9 million for the three months ended 30 June 2026, up 197.8% from Rs. 294.8 million a year earlier. Profit After Tax increased 137.0% to Rs. 429.4 million, compared with Rs. 181.2 million in the corresponding period last year.
Lending and income continue to grow
Interest Income rose 85.4% to Rs. 3.40 billion, while Net Interest Income more than doubled to Rs. 1.97 billion. The company’s Net Interest Margin, which measures the return earned from lending activities, improved to 13.9%, up from 10.6% a year earlier.
AAF expanded its total assets by 12.3% during the quarter to Rs. 60.42 billion.
Its loan portfolio also grew by Rs. 3.51 billion to Rs. 50.51 billion, reflecting continued demand for lending products.
Commenting on the results, Chief Executive Officer 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”.
Asset quality improves
The company reported an improvement in the quality of its loan portfolio during the quarter.
Its Gross Non-Performing Asset Ratio fell to 7.5% from 12.5%, while the Net Non-Performing Asset Ratio improved to 4.2% from 6.6%. These ratios measure the share of loans that have fallen into default or are at risk of non-payment.
AAF also maintained capital levels above regulatory requirements. Its Tier 1 Capital Adequacy Ratio stood at 18.96%, while Total Capital Adequacy was 18.85% at the end of the quarter.
During the three months, the company opened five new branches, increasing its network to 120 branches. It also established a training centre in Kurunegala to support employee development.
Asia Asset Finance retained its Fitch A+(lka) National Long-Term Rating with a Stable Outlook during the period.
Last modified: August 5, 2026
