Associated Motor Finance Company PLC (AMF) has posted impressive results for the nine months ending 31 December 2024, showcasing robust profitability growth, enhanced balance sheet strength, and a strong liquidity position. The company’s performance reflects its strategic focus, risk management discipline, and resilience in a challenging economic environment.
Despite the lingering impact of the COVID-19 pandemic and the 2022 financial crisis, AMF has continued to grow and strengthen its portfolio, even as lending activity slowed across the industry. The company’s ability to build capital and maintain liquidity highlights its financial stability and foresight.
AMF’s key financial indicators reveal this momentum. Profit Before Tax (PBT) climbed 133% to Rs. 781 million, while Profit After Tax (PAT) surged by 135% to Rs. 393 million.
The company posted a Return on Assets (ROA) of 5.25% and a Return on Equity (ROE) of 15.25%. Its Capital Base to Risk-Weighted Assets (Tier II) ratio stood at 15.49%, exceeding the 12.5% minimum regulatory requirement. This indicates solid profitability and an ongoing commitment to capital adequacy.
AMF’s total assets rose to Rs. 20.39 billion. Loans and receivables grew to Rs. 12 billion, reflecting a healthy expansion in lending. Customer deposits increased to Rs. 15.46 billion, highlighting continued public trust and confidence in the company’s financial management.
Total equity climbed 12% to Rs. 3.63 billion, while Net Asset Value (NAV) per share increased to Rs. 32.07, pointing to consistent value creation for shareholders. These gains demonstrate AMF’s commitment to strengthening its fundamentals and delivering sustainable returns.
The company also retained strong liquidity positions, with liquid assets making up 31.54% of total assets. Its short-term liquidity ratio was at a remarkable 198%, indicating AMF’s readiness to meet short-term obligations.
In recognition of its financial strength and governance practices, Lanka Rating upgraded AMF’s credit rating from BB- (Stable) to BB (Stable), reaffirming its sound risk management and stability.
AMF recently appointed Suren Goonewardene as Chairman, further strengthening its leadership team. “I am proud to lead AMF at a time of strong growth and am committed to steering the company towards sustainable expansion, customer satisfaction, and adaptability,” Goonewardene stated.
Director and CEO T M A Sallay credited the company’s performance to its ethical business practices and team commitment. “Our growth reflects our disciplined governance and customer-focused approach. Balancing expansion with responsibility ensures our long-term success,” he said.
AMF’s forward strategy includes expanding its digital lending capabilities, increasing market outreach, and investing in technology to improve operational efficiency. With strong capital reserves and liquidity, the company is well-positioned to support financial inclusion and navigate future market changes.
The current Board of Directors includes Suren Goonewardene (Chairman), Nalatha Dayawansa (Deputy Chairman), Mervyn Sallay (CEO), Shammalka Dayawansa, Shanil Dayawansa, Nilanka Pieris, Ranil Wijegunawardane, and Tauchira Kandamby.
