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Having recently doubled its capital to over Rs. 10 billion, Amãna Bank reinforced the confidence of its shareholders by tripling its Q3 2017 Profit Before Tax to reach Rs. 186.1 million as against Rs. 62.9 million of Q3 2016. For the nine months ending 30 September 2017, the bank recorded a Profit Before Tax of Rs. 397.0 million showcasing a significant YoY growth of 181% from Rs. 140.9 million achieved in the corresponding period of 2016.
Further the Profit After Tax for the same period grew by 163% YoY to reach Rs. 266.8 million from Rs. 101.4 million achieved a year ago. Despite doubling the bank’s number of shares as a result of the Rights Issue in July, the bank was successful in recording a 119% YoY growth in its EPS whilst Net Assets Per Share stood at Rs. 4.56 against the Market Price of Rs. 3.80 as at 30 September 2017.
The bank continued to display strong momentum in its top line performance with Financing Income crossing the Rs. 4 billion mark to achieve a YoY growth of 38%, which contributed towards the bank recording a Net Financing Income of Rs. 1.95 billion reflecting a 40% YoY growth. The bank’s Net Fee and Commission Income recorded an 18.5% growth to reach Rs. 170.8 million. Net Operating Income of the bank after impairment provisions reached Rs. 2.21 billion reflecting a healthy growth of 26.6% from the corresponding period of 2016.
The increase in Total Operating Expenses was maintained within 3.6% when compared with 2016. As a result the bank posted an Operating Profit Before VAT & NBT of Rs. 678.4 million which was an increase of 154% from Rs. 266.7 million recorded an year ago.
Having started the year with Rs. 54.3 billion in Total Assets, the bank’s asset base driven by the recent Rights Issue grew impressively to close the quarter at Rs. 63.6 billion. Customer Advances and Customer Deposits showcased noteworthy improvements closing at Rs. 41.2 billion and Rs. 49.7 billion respectively. Amãna Bank’s Financing Margin improved to 4.0% from 3.6% recorded at the end of 2016. In addition, the bank continued to maintain a healthy Gross Non Performing Advances Ratio of 1.56% well below the industry average reflecting the bank’s focus on portfolio quality. Net Non Performing Advances Ratio at the close of Q3 stood at 0.70%.
In addition to the capital infusion of Rs. 4.75 billion through the Rights Issue, the bank’s reserves showcased a further accumulation of Rs. 865.9 million mainly by increasing its revaluation reserve, as the Shareholders’ Funds closed at Rs. 11.4 billion.
Commenting on the bank’s performance to date, Chief Executive Officer Mohamed Azmeer stated, “I am pleased to witness the bank’s successful performance during the first three quarters of 2017, growing on the momentum gathered in the beginning of the year for which I am thankful to the shareholders, customers and staff. This promising upward trend is owing to the revenue growth achieved by the bank demonstrating the unique value proposition of its model whilst gaining widespread acceptance. The avenues of growth, reflects our focus of being a Retail and SME Bank as well as adapting to new technological innovations in line with the bank’s five year strategic plan. God willing, I am confident that this momentum will continue during the last quarter.”
Amãna Bank is the country’s first and only Licensed Commercial Bank to operate in complete harmony with the globally growing non-interest based banking model. With the mission of Enabling Growth and Enriching Lives, the bank reaches out to its customers through a growing network of 28 branches and 4000+ ATM access points and has introduced an array of customer conveniences such as Internet and Mobile Banking, Debit Card with SMS alerts, Online Account Opening, 365 Day Banking, Saturday Banking, Extended Banking Hours, 24x7 Cash Deposit Machines and Banking Units Exclusively for Ladies.
The bank was recognised as the Best ‘Up-and-Comer’ Islamic Bank of the World by ‘Global Finance Magazine’ at the 18th Annual World’s Best Banks Award Ceremony held in Washington DC, USA. The bank was also bestowed the coveted title ‘Islamic Finance Entity of the Year’ at the inaugural Islamic Finance Forum of South Asia Awards Ceremony.
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 a ‘AAA’ rated multilateral development financial institution with a capital base of over $ 150 billion which has a membership of 57 countries. Fitch Ratings, in October 2017, affirmed Amãna Bank’s National Long Term Rating of BB(lka) with a Stable Outlook. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the bank.
