Strong core banking growth for Pan Asia Bank in Q1

Monday, 14 May 2012 00:00 - - {{hitsCtrl.values.hits}}

Pan Asia Bank said last week it has continued with its growth momentum with an increase of 52%in its gross interest income which helped them achieve a Profit After Tax of Rs. 197 million in Q1.

Testament to its focus on strengthening core banking performance, total net revenue showed an impressive 19% increase Q1 compared to corresponding period in 2011, PABC Bank said in a statement.

Excluding Capital gains on Fixed Income Securities, the bank recorded an 18% improvement in its core banking activities compared to the same period the previous year. This performance was achieved despite total expenses going up by 36% due to branch expansion and staff related costs. In the same period, the bank grew its total customer deposit base by over 13% to top Rs. 40 billion, a testament to the effectiveness of its strong branch network and promotional strategies employed.

In spite of operating in a challenging macro environment backdrop, Pan Asia bank also managed to generate a robust growth of 6% in its total customer advances portfolio which exceeded Rs 38 billion. The balance sheet stood at Rs. 49 billion as of end Q1.

While recording impressive growth numbers and, Pan Asia Bank also improved the strength of its financial position by maintaining a liquidity ratio of 21.29 % which is well above the regulatory requirements. Bank’s main three areas, namely Retail Banking, Corporate Banking and Treasury contributed immensely to generate these impressive numbers while effective credit risk and controls in place ensures that Gross Non Performing Loan (NPL) ratios improved from 3.58% to 3.43% in this period. As of end of Q1, Net NPA of the bank stood at 2.2%.

Living up to its reputation as being one of the fastest growing banks in Sri Lanka, Pan Asia Bank added four new branches to its total branch network, taking it up to 68 branches as of end of Q1. Although this rapid growth comes at a significant capital cost, the bank remains strongly committed to increase its retail banking footprint across the country with the strategic intention of creating a strong platform for the bank to harness future growth potential of the country.

In addition, Pan Asia Bank’s debenture issue of 750,000 rated, unsecured, subordinated, redeemable debentures of Rs. 1,000 each was fully subscribed in Q1, 2012. Funds from this issue will strengthen Pan Asia Bank’s tier 2 capital which will enable the bank to further expand its asset book.

Commenting on the performance of the bank CEO Claude Peiris stated that he is satisfied with the results shown by the bank despite challenging market and regulatory conditions factors that were prevalent in Q1. He attributed the impressive performance of the bank to the correct strategies that have been employed and the full commitment of all team members to implement those strategies.

Peiris stated that the bank remains firmly committed to tread in the same strategic path where Pan Asia Bank expects to further increase its market share in retail banking arena.