Assetline Finance asset growth nears 40% in 1H 2025/26

Nanda Fernando -  Chairman

Ashan Nissanka - Director & CEO

Assetline Finance Limited reported a strengthened and increasingly resilient first-half performance for FY2025/26, with significant gains in asset growth, income enhancement, and core profitability for the six months ended 30 September 2025. 
Total assets expanded to Rs. 72,712 million, representing nearly 40 percent growth within the first half of the financial year; an achievement that underscores the company’s accelerated balance sheet expansion and deepening market presence. This broader and more robust balance sheet was driven by sustained lending growth and continued improvements in asset quality. Income generation also remained strong, with interest income rising to Rs. 6,732 million and net interest income increasing to Rs. 4,826 million, supported by healthy traction in lending and leasing operations, disciplined pricing strategies, and more efficient capital allocation. 
Profit before tax reached Rs. 2,940 million, while profit after tax stood at Rs. 1,416 million, underpinned by efficient collections and remedial measures, strengthened underwriting controls, and improved operating efficiency. 
In line with its commitment to national development, the Company contributed nearly 52 percent of its profit before tax toward government taxes during the period, reflecting a substantial and responsible fiscal contribution.
The lending portfolio expanded to Rs. 60,631 million, reflecting heightened credit demand across SME, micro-enterprise, and mobility-based customer segments. This represents a remarkable 42 percent growth during the first half of the financial year, demonstrating strong market traction and effective credit deployment. Equity also strengthened to Rs. 17,154 million, supported by retained earnings, resulting in a solid capital adequacy position that provides further capacity for accelerated growth.
Asset quality metrics demonstrated clear improvement. The Gross Stage 3 Loan Ratio improved to 4.0 percent from 9.7 percent a year earlier, while the Net Stage 3 Ratio improved to 1.8 percent from 6.4 percent, reflecting a more stable and better-performing portfolio. 
Notably, the Stage 3 Impairment Coverage Ratio increased sharply to 55.0 percent, up from 37.9 percent in the previous year’s corresponding period, indicating stronger provisioning discipline and enhanced risk management practices. Liquidity indicators also remained healthy, supported by a balanced borrowing structure and prudent treasury management.
Profitability and efficiency ratios further strengthened the Company’s financial profile. Return on Equity (ROE) rose to 17.1 percent, reflecting effective capital deployment and consistent earnings generation. 
Return on Assets (ROA) stood at 9.4 percent, underscoring the Company’s ability to deliver attractive returns relative to its asset base. Importantly, the Cost-to-Income Ratio improved to 39.8 percent, positioning Assetline Finance among the most efficiently managed entities in the industry and reinforcing the success of ongoing cost discipline and operational optimization initiatives.
Director & CEO Ashan Nissanka stated that the first-half results reflect Assetline Finance’s disciplined execution, enhanced asset quality, and strengthened income base. “Our performance during this period demonstrates the scalability and resilience of our business model. We have sustained our growth trajectory while improving profitability, deepening asset quality, and operating with some of the strongest efficiency ratios in the sector. 
Our focus remains on customer empowerment, responsible lending, and delivering long-term value supported by robust governance and operational excellence.”
Assetline Finance’s upgraded A rating with a Positive Outlook from the Lanka Rating Agency further affirms its strong capital position and resilient risk framework. As the Company enters the second half of FY2025/26, it remains well-positioned to capitalize on rising credit demand, strengthen income streams, and continue enhancing stakeholder value through disciplined and sustainable growth.