During 3MFY26, loan portfolio grew to LKR ~18.9Bn (FY25: LKR ~17.8Bn), while total assets increased to LKR ~22.3Bn (FY25: LKR ~21.6Bn). The loan portfolio expansion during the given quarter was primarily supported by a ~13% growth in the gold loan segment and a strong ~43% growth in the 2-wheeler segment. In terms of asset quality, the NPL ratio increased to ~7% in 3MFY26 (FY25: 5.9%), broadly in line with the industry average. Capitalization remains modest, while deposit concentration continues to remain high in 3MFY26. The Capital Adequacy Ratio ("CAR") stood at ~15.9%, below the industry average, thereby constraining the Company's growth potential. The Company improved its profitability based on higher spread as funding costs declined at a greater pace while yield on advances remained high.
PMF plans to issue up to LKR ~1Bn Tier II, Listed, Rated, Unsecured, Redeemable, 5-Year High Yield Bonds carrying semi-annual as well as annual coupons. The bonds will be listed on the Colombo Stock Exchange. The Company intends to deploy the proceeds to strengthen its Tier II capital base and support loan portfolio expansion, in line with compliance requirements under the CBSL Phase II Master Plan.
The rating is contingent on PMF Finance PLC’s ability to effectively implement its growth strategy, maintain profitability, and strengthen asset quality. A decline in key performance indicators or regulatory non-compliance could adversely impact the rating, while improvements in market share, profitability, and asset quality would support a positive rating outcome.