Home / Financial Services/ Amãna Bank records a 29% growth in Q2 PAT

Amãna Bank records a 29% growth in Q2 PAT

Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 13 August 2019 00:00


Amãna Bank achieved a commendable 29% YoY growth in Profit After Tax for Q2 to close the quarter with a bottom-line of Rs. 162.2 million compared to Rs. 125.5 million recorded in the corresponding period of 2018. Despite the higher tax regime applicable to the Banking Industry which accounted  for 60% of the banks Operating profits, Profit After Tax for the first half of 2019 reached Rs. 288.8 million, on par with the 2018 H1 Profit After Tax of Rs. 288.3 million. 

Profit Before Tax grew by 33% YoY to reach Rs. 231.8 million from Rs. 174.3 million recorded in Q2 of 2018. This bottom-line achievement is owing to the banks continued growth in its core banking activities, where Financing Income for Q2 recorded a growth of 19% YoY to reach Rs. 1.9 billion, which resulted in a H1 growth of 20% YoY to reach Rs. 3.8 billion. Net Financing Income for Q2 and H1 grew by 5% YoY to reach Rs. 831.6 million and 7% YoY to reach Rs. 1.7 billion respectively. Net Operating Income grew by 24% YoY in Q2 to post Rs. 1.1 billion while growing by 17% YoY during H1 to reach Rs. 2 billion. Operating Profit before VAT, NBT and Debt Repayment Levy for the same periods grew by 37% in Q2 and 17% in H1 to reach Rs. 408.4 million and Rs. 723.8 million respectively. The bank was successful in overcoming the challenging market conditions by growing its Customer Deposits for the first six months by 12% to close at Rs. 69 billion whilst the Advances portfolio grew by 7% during the same period to close at Rs. 56.5 billion. As a result, the bank’s Total Assets grew by Rs. 5.3 billion to close the quarter at Rs. 82.6 billion.

With the overall banking industry being challenged with high non-performing advances due to the current market context, Amãna Bank’s Gross Non Performing Advances and Net Non-Performing Advances saw an increase to stand at 3.58% and 1.45% respectively, well within the industry norms. The regulatory capital ratios remained sound as the bank closed the quarter with a Total Capital Ratio of 17.1%. The bank’s Return on Equity improved to 4.8% from 4.6% recorded in December 2018.

Commenting on its first-half performance, the bank’s Chief Executive Officer Mohamed Azmeer said “Despite challenging market conditions that tested the resilience of business across all sectors and industries, I am pleased to witness the profit momentum being sustained. Such resilience and profit momentum will enable us to duly reward all our stakeholders consistently, to whom we are extremely thankful.”

Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange, with Jeddah-based IDB Group being the principal shareholder having a 29.97% stake of the bank. The IDB Group is an ‘AAA’ rated multilateral development financial institution with an authorised capital base of over $150 billion, which has a membership of 57 countries. Fitch Ratings in June 2019 affirmed Amãna Bank’s National Long Term Rating of BB (lka) with a Positive Outlook.  Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the bank.


Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

The Presidential Election: Into anarchy or out of anarchy?

Saturday, 24 August 2019

In politics there are no absolute truths, rights or wrongs: all is relative. Politics is about choices and alternatives. It is also the art of the possible. The best policy for the people is to work through the give

We need to challenge climate change doubters before it is too late

Friday, 23 August 2019

Imagine a London where the entire subterranean region is engulfed with dirty water. Crammed train carriages that once barrelled along 249 miles of track transporting busy office workers, builders, teachers, civil servants, cleaners and students now r

The Provincial Council Elections – The charade goes on

Friday, 23 August 2019

Originally the SLPP was keen to hold the Provincial Council Elections (PCE) immediately after the Local Government Election results as they felt the PCE would go in their favour. PCE were held under the Proportional Representation system. The relevan

The presidency and the dilemma of the Presidential Election

Friday, 23 August 2019

J.R. Jayewardene created a presidential system not because the parliamentary system of governance that preceded it had failed. He wanted to take over all the powers of the State and assume the status of ancient kings who ruled the country in the past

Columnists More

Special Report