Abans Finance achieves 344% growth to reach Rs.951mn PBT in FY25

Abans Finance PLC has reported outstanding financial results for the year ending March 31, 2025, reinforcing its status as a resilient and growth-oriented member in Sri Lanka’s non-banking financial services sector. 

The company recorded a total income of Rs.3.46 billion, a significant increase from Rs.2.86 billion in the previous financial year. This 21 percent year-on-year (YoY) growth was primarily fuelled by enhanced lending operations and asset portfolio expansion, which resulted in interest income rising to Rs.3.03 billion, from Rs.2.61 billion. 

The company’s net interest income surged by 73 percent to reach Rs.2.09 billion, up from Rs.1.21 billion the previous year, reflecting effective risk management strategies and an improved cost-of-funds position. This strong income growth laid the foundation for an equally impressive rise in profitability.

Abans Finance’s net operating income more than doubled, climbing from Rs.1.06 billion to Rs.2.07 billion, while operating profit before tax (PBT) rose to Rs.951 million, a remarkable 344 percent increase from Rs.214 million recorded in FY 2023/24. Profit after tax stood at Rs.426 million, compared to Rs.104 million, marking a 309 percent YoY growth. The strength of the balance sheet was equally compelling. As of March 31, 2025, total assets rose to Rs.13.48 billion, up 22 percent, from Rs.11.01 billion from the previous year. Customer deposits grew to Rs.8.45 billion, from Rs.6.37 billion, indicating the rising public trust in Abans Finance’s secure and attractive deposit products. 

The shareholders’ equity strengthened to Rs.3.5 billion, compared to Rs.3.08 billion in the prior year. The company nearly doubled its retained earnings from Rs.912 million to Rs.1.74 billion, on its outstanding profit performance and on improved loan loss provisioning status of the company, enhancing the overall equity profile.

Abans Finance Acting Chief Executive Officer Upul Gunasekara remarked, “We are especially proud of the significant improvement in our credit performance, as demonstrated by the reduction in our nonperforming loan ratio, a clear testament to the effectiveness of our strengthened credit risk management framework and the improved quality of our growing loan portfolio.”