Amãna Bank’s 9-month PAT grows by 61%

• Total assets top Rs. 70 billion

Amãna Bank continued its strong profit momentum for the year, as its Profit After Tax for the nine months ending 30 September grew significantly by 61% YoY to reach Rs. 429.9 million from Rs. 266.8 million recorded a year ago. 

The Profit Before Tax for the same period grew by 50% YoY to reach Rs. 597.1 million compared to the Rs. 397 million recorded in the corresponding period of 2017. 

Supported by a consistent profitability trend over the past few years, the bank, for the first time in its relatively short history, paid an interim dividend of seven cents per share, totalling Rs. 175.1 million during the last quarter. 

With its banking activities primarily revolving on Retail and SME banking, Amãna Bank’s Financing Income recorded a 23.6% YoY growth to reach Rs. 4.95 billion from the Rs. 4.0 billion recorded in 2017. Net Financing Income grew to Rs 2.40 billion from Rs. 1.96 billion, reflecting a 22.7% YoY growth. The bank continued to maintain a healthy Financing Margin of 4.4% compared to 4.2% at end-2017. Complementing the strong momentum of growth in core banking, the bank’s Net Fee and Commission Income reported a commendable YoY growth of 28.2%. Despite the increase in impairment charge on advances and considering only a 9.6% overall increase in operating expenses, the bank was successful in achieving an impressive 38.1% YoY growth in Operating Profit before all Taxes to close the third quarter with a cumulative amount of Rs. 937.3 million.

Despite the overall tightness of liquidity in the market, Amãna Bank’s Customer Deposits grew by 14.3% for the nine months to close at Rs. 58.20 billion owing to the growing acceptance of the bank’s people-friendly non-interest-based banking model. 

The bank’s Customer Advances also showcased a strong 15.4% increase to close at Rs. 49.52 billion, reflecting a healthy utilisation of funds. As a result, the bank’s Total Assets grew by Rs. 9.6 billion (15.2%) to close the quarter at Rs. 73.17 billion. Due to prevailing general market conditions, the bank’s Gross Non-Performing Advances Ratio increased to 2.78% from 1.89% at end-2017, which is below the Industry Gross Non Performing ratio of 3.1% as at June 2018. The bank’s Net Non-Performing Advances Ratio stood at a healthy 1.18%.

Commenting on the bank’s performance to date, its Chief Executive Officer Mohamed Azmeer said: “It is noteworthy to reflect on our continuous profitability achievements, which have been very encouraging. Looking back in retrospect at our five-year strategic plan, the success we have achieved and sustained thus far is a result of the longstanding confidence placed in us by our valued customers, determined shareholders and devoted staff, for which we are humbly grateful. I am confident this momentum will further grow during the latter part of the year, making it one of the most successful in the recent past.”

Amãna Bank Plc is a standalone 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 in the bank. 

The IDB Group is a ‘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 2018 affirmed Amãna Bank’s National Long-Term Rating of BB(lka) while revising its outlook to Positive from Stable. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing it.