AMF sustains growth momentum and financial resilience for nine months ended December 2024

Associated Motor Finance Company PLC (AMF) has delivered a strong performance for the nine months ended 31st December 2024. The company recorded significant profitability growth, reinforced balance sheet strength, and a strong liquidity position, demonstrating strategic agility and prudent risk management.

AMF has shown resilience despite economic challenges during the COVID-19 pandemic and the 2022 financial crisis. While the industry saw a decline in lending activity, AMF continued to grow its portfolio, strengthening capital and liquidity to ensure financial stability.

The Company achieved significant growth across key financial indicators. Profit Before Tax (PBT) increased by an impressive 133%, reaching Rs. 781 million, and Profit After Tax (PAT) recorded substantial growth of 135%, rising to Rs. 393 million.

Return on Assets (ROA) and Return on Equity (ROE), stood at 5.25% and 15.25%, respectively, and the Capital Base to Risk-Weighted Assets (Tier II) ratio reached 15.49%, exceeding the regulatory minimum requirement of 12.5% and demonstrating the Company’s profitability and further improvement.

Total assets expanded to Rs. 20.39 billion, and Loans and receivables grew to Rs. 12 billion, boasting a healthy credit portfolio and increased lending activity. Customer deposits reflected a significant growth, reaching Rs. 15.46 billion, a testament to sustained customer confidence and trust in the Company’s financial strength.

Furthermore, total equity increased by 12%, reaching Rs. 3.63 billion, and the Net Asset Value (NAV) per share stood at Rs. 32.07, reflecting consistent value creation for shareholders. These financial achievements underscore the Company’s strong foundation, prudent risk management, and commitment to delivering long-term value to stakeholders. AMF maintained strong liquidity well above industry standards, with Liquid Assets accounting for 31.54% of Total Assets and a Short-Term Liquidity Ratio of 198%, demonstrating its ability to meet immediate obligations with ease.