ASIA ASSET FINANCE JOIN HANDS WITH MUTHOOT FINANCE AND IS POISED TO RECORD UNPRESIDENTED PROFITS AND GROWTH IN NET ASSETS

Preamble:

Asia Asset Finance PLC (AAF) has been serving the Sri Lankan community with their financial needs from 1970 [formerly known as the Finance and Land Sales Ltd], and has now joined hands with Muthoot Group – India who has over 128 years of unblemished track record in finance and in over 15 other fields.

Introduction to Muthoot Group:

The Muthoot Group, has evolved from a one service to a multi-disciplinary, multi-faceted conglomerate that hasover 60 subsidiary companies under its umbrella with4270 Branches across 26 states in India and Union Territories. The Muthoot Group has served beyond5 million customers. Looking at Financials, the Group’s Retail loan portfolio is recorded over INR 219 Billion with Net Owned Funds over INR 42 Billion and Gross Annual Income over INR 49 Billion Profit. The Group’s After Tax is recorded at INR 8 Billion.

Muthoot Investment in Sri Lanka:

To further expand globally Sri Lanka was selected as the most desired investment destination in the SAARC Region especially taking into account the envisaged post war development and economic growth, and the location in close proximity to the Head Office of Muthoot Finance in Kerala. Having evaluated a few potential Sri Lankan companies for partnering, AAF was selected in view of its financial performance and potential for growth,envisaged synergies and possible technological transfers along with itsmanageable size of operation and investment.

Strength of Muthoot Future to AAF:

The tie up with Muthoot Finance has enabled AAF to secure low cost diversified funding lines on top of the increasing customer deposit portfolio. It has also transferred technology and ‘business know how’ especially in the Gold Loan product which was hitherto not in the product offers of AAF. The strength in the treasury has enabled AAF to be more creative with the products being offered and also make products more flexible to cater to a bigger demographic.

Further to the growth in the reach, product development was the key factor in the success story of AAF.  The current product range has Fixed Deposits, Leasing, Business loans, SME Loans, Personal Loans and Group Personal Loans, Factoring, Gold Loans and Micro Finance as main products. The expertise, the reputation and the clear implementation has enabled AAF to have a rapid uptrend in the market. This has enabled AAF to be more innovative with the products and as the company practice has been for the last 5 years to introduce unique products to the market.

Some of the biggest contributors for the success of these products has been the procedures and policies in place for a speedy disbursement of funds. This has enabled the company to create a unique trust byfurtherimproving the relationship created between the customer and the company. While this cannot be measured in numbers the feedback received by the customers has been very rewarding. Hence, AAF is in the process of achieving another record breaking financial year which is evident at the half mark of the financial year.

Financial Highlights of AAF

AAF has seen year on year profits increasing with the last financial year recording the highest profit in the history of the company with a 100% increase in profits to 100 million which is a 100% YOY growth;

Future Strategies of AAF

The strategy for the next two quarters of the financial year is to continue to hold this momentum which would see AAF being pushed to being in the top 10 finance companies in the industry. Further AAF has made plans to increase the reach with 15 more branches within the next 2 years with the proposed addition of new branches in the Central, North Central, Uva and Sabaragamuwaprovinces. The business expansion has begun smoothly and will collect pace and move towards a rapid expansion towards the end of the financial year and in the next 2 financial years as explained above.