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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% year-on-year 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% 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 PLC’s net operating income more than doubled, climbing from Rs. 1.06 billion to Rs. 2.07 billion, while operating profit before tax rose to Rs. 951 million, a remarkable 344% increase from the Rs. 214 million recorded in FY 2023/24. Profit after tax stood at Rs. 426 million, compared to Rs. 104 million, marking a 309% year-on-year growth.
The strength of the balance sheet was equally compelling. As of 31st March 2025, total assets rose to Rs. 13.48 billion, up 22% from Rs. 11.01 billion from previous year. Customer deposits grew to Rs. 8.45 billion from Rs. 6.37 billion, indicating rising public trust in Abans Finance’s secure and attractive deposit products. 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.
Commenting on the Company’s record-breaking year, Upul Gunasekara, Acting Chief Executive Officer of Abans Finance PLC, said, “We are especially proud of the significant improvement in our credit performance, as demonstrated by the reduction in our Non-Performing Loan (NPL) ratio, a clear testament to the effectiveness of our strengthened credit risk management framework and the improved quality of our growing loan portfolio.”
Further diversification of the lending portfolio into various sectors and geographic areas together with strategies used in managing the concentration risk has further stabilized the quality of the lending portfolio and facilitated maintaining a healthy liquidity position. The launch of gold loans and education loans have been key in the diversification front for FY 25/26 in addition to diversifying into EVs. The proposed branch expansion plan would be a strong support for the diversification effort.
Abans Finance PLC is a principal member of the Abans Group. Through the backing of the Abans Group and a strong management team it has been able to diversify its lending portfolio, reduce its funding cost and improve collections to record the best ever performance in all PBT, Capital and Total assets. The company carries a ‘A – (lka)’credit rating (investment grade) from Fitch Ratings.
