Pan Asia Bank reports Rs. 272 m profit in March quarter

Wednesday, 15 May 2019 02:48 - - {{hitsCtrl.values.hits}}

Growth moderated on subdued economy
Bank maintains margins over 4.0%, NII up 16%
Total operating income up 5% to Rs. 2.1 billion
Debt Repayment Levy hurts bottom-line

Pan Asia Banking Corporation PLC in a statement said it managed to maintain a steady performance during the first quarter ended in 31 March (1Q’19) with the top-line rising 16% and the bank managing to maintain margins north of 4%, ahead of the industry.

Chairman G.A.R.D Prasanna

Director/CEO Nimal Tillekeratne

The bank recorded a net interest income of Rs. 1.55 billion for the three months, up 16% from the same period in 2018 as the growth in interest income surpassed the growth in the interest expenses for the period.

The bank’s net interest margin was 4.12% during the period, higher than the industry average albeit slightly dented from December 2018.

The bank was able to maintain higher margins along with a respectable level of top-line due to its rigorous efforts to maximise the return from its asset portfolio. The management re-priced its asset and liability books along with the market interest rates and recalibrated its portfolio of assets to maximise the return.

“What we witnessed during the past quarter was a culmination of challenges from across all spheres resulting in slowing down of the growth in the sector which could continue even in the current quarter,” Pan Asia Bank Director and CEO Nimal Tillekeratne said.

“Even in these challenging circumstances we were able to off-set some of the adverse impact from the vagaries of the economy due to continuous portfolio return maximisation,” he added. Tillekeratne also said the bank was ratcheting up its capital and building its resource pool to accelerate the growth as the bank has lot to do in catching up work.

During the three months, the bank reported a total operating income of Rs. 2.1 billion compared to Rs. 1.99 billion in the same period last year.

Meanwhile the bank reported Rs. 272.2 million in earnings during the January - March quarter compared to Rs. 312.8 million in the corresponding quarter in 2018 as the impact from the debt repayment levy took toll on the after tax profits.