AMF posts impressive financial performance in FY 2021/22

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Associated Motor Finance Company PLC (AMF) has delivered a resilient financial performance during FY 2021/22, despite an uncertain economic environment. Supported by the merged Company’s committed workforce and prudent management strategies, the Company’s Profit Before Tax (PBT) rose to LKR 492 million in the FY 2021/2022. The Liquid Asset to Deposit Ratio stands at a significant 37.65%, indicating the company’s healthy financial standing highlighting their ability to pay off obligations through liquid assets.

Achieving another strategic milestone in its transformational journey, AMF’s rights issue in 2021 to raise Rs 500 million in equity was oversubscribed further strengthening its core capital requirements to be fully compliant with CBSL requirements. The rights issue oversubscription points toward the improving financial stability and trust of AMF and the Company’s ability to move steadily forward with its five-year strategic plan. Accordingly, the Company’s Core Capital grew by 65% to LKR 2.624 billion, from LKR 1.590 billion during the period under review. Both Tier I and Tier II Capital Ratios too witnessed a growth, rising to 14.9% and 15.8%, respectively well above the statutory minimums

AMF marked a major milestone in its journey last year when the company merged with Arpico Finance Company PLC to become a single entity and one of the strongest in the industry. AMF has leveraged its new position of strength to steer through tough times with resilience and further consolidated its position as a result.