Amãna Bank continues profit momentum in Q1; Records strong growth in deposits

Wednesday, 20 May 2020 00:31 - - {{hitsCtrl.values.hits}}

Amãna Bank CEO Mohamed Azmeer

Amãna Bank achieved a commendable Q1 performance in 2020, which saw its customer deposits grow by Rs. 5.4 billion or by 8% to close the quarter at Rs. 77.0 billion. As a result of conscious strengthening of credit risk parameters in the backdrop of challenging market conditions, advances grew only by 1% to close at Rs. 58.4 billion.

The growth in customer deposits is a strong indication of the growing customer confidence and demand for the bank’s people-friendly banking model. The growth also reflects the bank’s effort in increasing its reach through strategic partnerships and collaborations, resulting in the bank having one of the largest networks for deposits with 750+ access points across the Island.

Owing to the increase in customer deposits, the bank’s Total Assets surpassed the Rs. 90 billion mark to read at Rs. 91.6 billion resulting in the bank’s Net Asset Value improving to Rs. 4.78 per share.

Despite the challenging economic conditions which continued, Amãna Bank has been successful in maintaining its profit momentum in Q1 2020, recording a Profit Before Tax of Rs. 180.2 million which remained flat when compared with the Q1 2019 figure of Rs. 180.8 million. Profit After Tax was recorded as Rs. 129.8 million which saw a 3% increase from Q1 2019. The PAT includes the benefit of tax concessions that were offered for the current year as part of reforms to banking sector taxation.

The bank also continued to maintain a healthy asset portfolio with non-performing ratios being well below industry averages, where Net NPA and Gross NPA stood at 1.8% and 4.0% respectively.

Commenting on its Q1 2020 performance, the bank’s Chief Executive Officer Mohamed Azmeer said: “I am pleased to witness that the strategies and measures taken during 2019 has helped the bank withstand the challenging economic conditions and record a satisfactory performance in Q1 2020.

“However, with the recent outbreak of COVID-19 which has disrupted economies across the world, we have to brace ourselves for greater impact on profitability. In this context, I am happy to note that our positive trend in deposit growth since 2019, which is also evident in Q1 2020, has helped the bank grow in strength and stability, positioning it well to face the challenges of the coming quarters while doing our best to support the country’s efforts to overcome the economic effects of this pandemic.”