Monday Sep 07, 2026
Monday Sep 07, 2026
Monday, 17 August 2026 04:30 - - {{hitsCtrl.values.hits}}
Managing Director and CEO Mohamed Azmeer
Amana Bank has marked its 15th anniversary with best ever first half performance with profit after tax growth of 25% to surpass the Rs. 1 billion mark for the first time whilst second quarter figure rose by 33%.
On the Bank’s top-line performance, Net Financing Income grew YoY by 16% during H1 2026 to reach Rs. 4.4 billion, supported by a steady financing margin of 4.3%.
For the quarter ended 30 June, Net Financing Income stood at Rs. 2.2 billion, reflecting an 18% YoY growth. The Bank’s Net Fee and Commission Income recorded strong growth, increasing by 16% to Rs. 0.7 billion in H1 2026. This contributed to Total Operating Income rising to Rs. 2.8 billion in the 2nd Quarter and Rs. 5.5 billion in H1, translating to a growth of 22% and 18% respectively. Net Operating Income for the H1 and Q2 rose by 19% and 20% to close at Rs. 5.4 billion and Rs. 2.8 billion. Despite prevailing inflationary pressures, the Bank improved its Cost-to-Income Ratio to 51% for H1 2026, from 52% at the end of Q1, reflecting improved operational efficiency. Consequently, Operating Profit before all taxes increased by 18% YoY to Rs. 2.5 billion. The Bank’s aggregate tax contribution of Rs. 1.3 billion accounted for a significant 55% of the Bank’s Operating Profit before all taxes.
The Bank further strengthened its balance sheet during H1 2026, with Customer Advances growing to Rs. 157.0 billion, largely driven by continued growth in its SME financing portfolio, reinforcing its commitment to supporting a vital sector of the national economy. Despite this growth, the Bank maintained strong asset quality, with its Stage 3 Net Impairment Ratio (NPA) improving to 1.1% from 1.2% as of end Q1, remaining among the lowest in the industry. This reflects the Bank’s prudent risk management and robust underwriting standards, underpinned by its unique development-focused and people-friendly approach to banking. Customer Deposits grew by 5% during H1 to reach Rs. 180.4 billion, while the Bank continued to maintain an industry-leading CASA ratio of 45.2%.
Further, during Q2, the Bank acquired its new corporate office premises for Rs. 2.7 billion, which resulted in the Bank’s Total Assets increasing to Rs. 215.2 billion, reflecting a 5% growth for the half. The Bank’s share was trading at Rs. 26.80 as of 30 June 2026, reflecting a 43% discount from the Bank’s Net Asset Value Per Share of Rs. 47.30.
With its upward profitability trend the Bank improved its Return on Equity to 8.9%, in comparison to 8.1% in Q1 2026 and 7.8% in H1 2025, while Return on Assets stood at 1.8%. The Bank’s capital position remained healthy despite the recent property acquisition, with the Common Equity Tier 1 Capital Ratio closing at 12.4% and the Total Capital Ratio at 13.8% above the regulatory minimum requirements of 7% and 12.5%, respectively underscoring the Bank’s financial profile and stability. Liquidity buffers remained strong as at H1 2026, with the Liquidity Coverage Ratios for Rupee and All Currency standing at 321.8% and 206.6%, respectively, and the Net Stable Funding Ratio at 144.2%, all comfortably exceeding the regulatory minimum requirement of 100%.
Chairman Asgi Akbarally said: “As we celebrate 15 years of Amãna Bank, our strong performance during the first half of 2026 is a fitting reflection of the progress the Bank has made and the strong foundation we have laid over the years. I am particularly pleased that our growth continues to translate into greater support for customers, businesses and communities, while enabling us to create sustainable value for all our stakeholders. As we embark on the next chapter of our journey, we remain confident in the Bank’s ability to build on this momentum while remaining firmly committed to our development-focused and people-friendly approach to banking.”
Managing Director/CEO Mohamed Azmeer said: “Our performance during the first half of 2026 reflects the continued success of our business model and the impact we have made with a unique approach to banking. We are particularly encouraged that this growth has been achieved by continuing to support customers in Retail, SME and Corporate segments, including entrepreneurs and communities, while maintaining strong asset quality and strengthening operational efficiency. As we mark our 15th Anniversary, these results give us further confidence in the direction of the Bank and our ability to leverage on the strong foundation established over the years. With the acquisition of our new Corporate Office premises, and the subsequent board approved plan to dispose of the previously held property, is expected to contribute positively towards strengthening the Bank’s financials.”
Thanking key stakeholders Azmeer further added, “I take this opportunity to thank our customers for their continued trust, our shareholders, Board of Directors and Sharia Supervisory Council for their confidence, expertise and guidance, our regulators for their valued oversight, and our employees for their dedication and commitment in delivering these results. We remain focused on sustaining this momentum through the remainder of the year while continuing our mission of enabling growth and enriching lives.”
