One of the oldest financial companies in Sri Lanka, founded in 1962, Associated Motor Finance Company PLC (AMF) recorded a resilient financial performance in the financial year 2021/22, despite an uncertain economic environment. Supported by the committed workforce and prudent management strategies of the combined company, the company’s profit before tax (PBT) reached Rs 492 million in the financial year 2021/2022. The ratio of liquid assets to deposits stands at 37.65%, which indicates the company’s healthy financial situation and highlights its ability to repay its obligations with liquid assets.
Reaching another strategic milestone in its transformation journey, the AMF’s rights issue in 2021 to raise Rs. 500 million in equity was oversubscribed, further strengthening its base capital requirements to be fully compliant with the CBSL. The oversubscription of the rights issue reflects the improved financial stability and confidence of the AMF and the Company’s ability to steadily advance its five-year strategic plan. As a result, the company’s capital base increased by 65% to LKR 2.624 billion from LKR 1.590 billion during the reporting period. Tier I and Tier II capital ratios also grew, reaching 14.9% and 15.8% respectively, well above the legal minimums
Commenting on the financial performance, AMF CEO TMA Sallay said: “We are pleased to inform our investors and other stakeholders that we have met and exceeded the objectives we set ourselves for the financial year. 2021/22. By delivering exceptional value to all stakeholders, we were able to end the year on a high note. »
”Throughout the pandemic and other past and present challenges, we have always made timely interest payments to our valued depositors. We have ensured that the interests of our shareholders are taken into account and we have always taken care of our employees. Thus, we take this opportunity to reassure all stakeholders that the AMF will build on this momentum to deliver exceptional value to all of its stakeholders,” said Sallay.
Last year, AMF took an important step in its journey when the company merged with Arpico Finance Company PLC to become a single entity and one of the strongest in the industry. The AMF took advantage of its new position of strength to weather the difficult times with resilience and thus consolidated its position.
Thanks to the synergies emerging from this union, AMF now caters to a wider clientele in different market segments with an island-wide network of branches, covering 12 strategic cities and townships, as well as its extensive network of dealers. The Company’s diversified portfolio of financial products and services includes leasing, mortgages, personal loans, term and savings deposits, alternative finance and other related services. The management of the AMF remains optimistic and confident about continued success in the future and the achievement of results for all stakeholders.