Alliance Finance Company records solid performance in challenging year

Alliance Finance Company PLC (AFC), Sri Lanka’s oldest finance company, recorded a solid financial performance for the fiscal year 2023/24. Amid economic challenges, AFC has demonstrated remarkable growth and resilience, a testament to its strategic focus on sustainable finance and robust governance. 

The financial results for FY 2023/24 reveal substantial progress compared to the previous year, with Profit After Tax climbing by an overwhelming 81.59 percent to Rs. 917 million. Profit Before Tax saw a growth of 78.59 percent to Rs. 1,698 million, Interest Income increased by 10.36 percent to Rs. 13,185 million and Net Interest Income rose by 29.80 percent to Rs. 5,887 million. 

Additionally, AFC’s financial position has significantly strengthened, with Total Assets up by 15.17 percent to Rs. 60,175 million, the Lending Portfolio increasing by 18.21 percent to Rs. 46,104 million, Shareholder’s Equity rising by 16.83 percent to Rs. 8,129 million, Earnings per Share improving by 81.59 percent to Rs. 27.21, and Gross NPL decreasing by 3.74 percent to 9.38 percent.

AFC’s performance is not solely measured by its financial success but also by its unwavering dedication to sustainability and ESG (Environmental, Social and Governance) principles. The company’s 360-degree approach to ESG integration spans across all operations, strategies, and the value chain, ensuring that sustainability is deeply embedded in its core business model. Alliance Finance Co PLC has become the first financial institution in South Asia to receive the SSCI Certification, the world’s first measurable and certifiable standard for value driven financial institutions with holistic sustainability integration to the business. 

This holistic approach goes beyond traditional corporate social responsibility initiatives and mere reporting standards aiming to create enduring value for multiple stakeholders of the Company with a strong emphasis on society and the environment. AFC is committed to addressing sustainability challenges through innovative products and services that minimize environmental impact, conserve resources, promote social well-being, and align with evolving customer expectations for sustainability.

Tamara Dharmakirti Herath, Chairperson of AFC, highlighted the company’s achievements, stating, “Throughout the year under review, AFC made good headway in further strengthening its position as the leader in sustainable financing in our core markets. Anchored to our purpose, we remained firm in our endeavor to empower MSME sector expansion.” 

Romani de Silva, Deputy Chairman/Managing Director of AFC, further emphasized, “AFC continued to solidify its position in the local NBFI with an impressive financial performance for FY 2023/24, which I believe points to the deployment of timely and well-planned strategic interventions to ensure sustained earnings regardless of economic vagaries.”