Associated Motor Finance Company PLC (AMF) has achieved a financial milestone, delivering its strongest-ever performance for the financial year ended March 31, 2025, a media release from the company stated.
The company posted a Profit Before Tax (PBT) of Rs. 1.78 billion, representing a 122% increase over the previous year. Profit After Tax (PAT) soared even higher, rising 136% year-on-year to Rs. 750 million, reinforcing AMF’s emergence as a robust, agile, and forward-focused institution within Sri Lanka’s financial services landscape. Financial and operational performance highlights for FY 2024/25 include a 53% surge in net interest income to Rs. 3.28 billion, supported by a 12% increase in interest income and a 19% reduction in interest expenses.
The lending portfolio recorded healthy growth of 23%, reaching Rs. 13.61 billion, while total assets expanded by 10% to Rs. 21.17 billion. Public deposits also reflected strong customer confidence, growing by 7% to Rs. 15.55 billion, and shareholders’ funds rose by 22% to Rs. 3.97 billion — underscoring the company’s strengthened financial foundation. Operational profitability and efficiency improved significantly. Return on Average Assets (ROA) stood at 8.78%, while Return on Equity (ROE) reached an impressive 20.81%. Net Interest Margin (NIM) held strong at 16.21%, and the efficiency ratio improved sharply to 40.82% from 55.46% the year before, reflecting tighter cost control and productivity gains.
AMF also maintained a robust capital position, with a Tier I Capital Ratio of 18.96% and a Total Capital Ratio (Tier II) of 19.24%—well above the regulatory minimums of 8.5% and 12.5% respectively.
Liquidity remained a key strength, with Liquid Assets to Short-Term Liabilities at 87.67%, Liquid Assets to External Funds at 37.71%, and Liquid Assets to Total Assets at 27.10%.
Earnings per share (EPS) more than doubled to Rs. 6.62, while Net Asset Value (NAV) per share climbed to Rs. 35.01, reflecting continued value creation for shareholders. In recognition of its enhanced risk and financial profile, Lanka Rating upgraded AMF’s credit rating to BB (Stable).
As part of its ongoing efforts to strengthen financial stability, accelerate growth, and uphold strong governance, AMF’s Board of Directors has approved the issuance of Listed Rated Unsecured Subordinated Redeemable High-Yield Bonds amounting to Rs. 1.25 billion, subject to regulatory approval. The bonds will be listed on the Colombo Stock Exchange upon receiving the necessary clearances.
