Assetline Finance records 14% increase in interest income reaching Rs. 11.3 bn

Assetline Finance Limited has delivered one of its strongest performances to date for the financial year ended 31 March 2025, reinforcing its position as one of Sri Lanka’s leading non-bank financial institutions. 

It has recorded a 14 percent increase in interest income, reaching Rs. 11.3 billion, up from Rs. 9.9 billion the previous year. 

Net interest income surged by 30 percent to Rs. 8.7 billion. Profit before tax rose by 96 percent to Rs. 5.6 billion, while profit after tax more than doubled to Rs. 2.7 billion—a 111 percent increase from the previous year.

Assetline Finance’s exceptional financial performance was matched by continued improvements in operational efficiency, disciplined risk management, and balance sheet strength.

The company’s total assets increased by 40 percent to Rs. 52.4 billion, while the lending portfolio grew by 46 percent to Rs. 42.7 billion, reflecting strong credit demand and effective portfolio management.

It maintained a robust Capital Adequacy Ratio (CAR) of 26.1 percent, well above the regulatory minimum, and strengthened its equity base by 15 percent, ensuring long-term financial resilience and investor confidence.

Asset quality also saw a marked improvement. The Gross Stage 3 Loan Ratio declined to 3.9 percent, while the Net Stage 3 Ratio dropped to 1.3%, both significantly outperforming industry averages.

One of the most notable operational achievements was the cost-to-income ratio, which improved to 36.76 percent, placing Assetline Finance among the most efficient financial institutions in the industry. This improvement reflects strong cost control, increased automation, and a commitment to operational excellence.

The company also recorded significant gains in profitability metrics. Return on Assets (ROA) before tax rose to 12.39 percent, while Return on Equity (ROE) after tax increased to 18.2 percent, underscoring efficient capital deployment and effective execution of strategy.

Through a network of 59 branches across Sri Lanka, Assetline Finance continued to expand access to financial services in both urban centres and underserved rural areas. The Company remains a key enabler of first- and last-mile mobility solutions for rural communities, supporting livelihoods, connectivity, and local economic participation.

Recognizing the vital role of small and medium-sized enterprises (SMEs) in national development, Assetline Finance has prioritized access to affordable finance through working capital loans and asset-backed facilities. A key focus has also been on empowering women entrepreneurs, removing barriers to credit, enabling business growth, and supporting job creation.

In a significant milestone, the company secured a senior loan from the Japan ASEAN Women Empowerment Fund, managed by BlueOrchard Finance. This partnership underscores Assetline Finance’s commitment to gender-inclusive finance and marks a strategic step in empowering women-led businesses by expanding access to affordable capital, fostering entrepreneurship, and supporting inclusive economic growth.

The company is actively supporting Sri Lanka’s green transition through financing for solar energy adoption in homes and businesses. These initiatives promote environmental sustainability, reduce customer energy costs, and contribute to a more resilient energy future.

Commenting on the year’s performance, Ashan Nissanka, Director and CEO of Assetline Finance stated, “Our strong financial results reflect the power of a purpose-driven strategy. As we look to the future, we will continue to innovate, grow responsibly, and contribute meaningfully to Sri Lanka’s economic resilience and sustainability.”