Monday Aug 18, 2025
Monday Aug 18, 2025
Friday, 15 August 2025 05:13 - - {{hitsCtrl.values.hits}}
Managing Director/CEO Mohamed Azmeer
Amana Bank said Profit Before Tax (PBT) surpassed the Rs. 1.5 billion mark in the first half of 2025, reflecting a 14% year-on-year (YoY) increase. Profit After Tax (PAT) also rose by 18% YoY to Rs. 901.3 million. For the second quarter alone, PBT grew by 29% to Rs. 798.6 million, while PAT surged by 37% to Rs. 467.2 million.
Net Financing Income for the first half of 2025 grew by 8% to Rs. 3.8 billion, supported by a healthy financing margin of 4%. A similar growth trend was recorded in 2Q 2025 n with Net Financing Income amounting to Rs. 1.89 billion. The bank’s Net Fee and Commission Income recorded strong growth, increasing by 59% to Rs. 370.2 million in 2Q and by 30% to Rs. 674.6 million in H1 2025. This contributed to Total Operating Income rising to Rs. 2.35 billion in 2Q and Rs. 4.73 billion in 1H, translating to a growth of 14% and 7% respectively.
Fuelled by enhanced portfolio quality, improved operating environment and proactive customer engagement, the bank said it achieved a 59% YoY reduction in Impairment Charges, resulting in a 12% increase in Net Operating Income to Rs. 4.59 billion in 1H 2025. Maintaining a cost-to-income ratio of 52%, the bank went on to record a 16% growth in Operating Profit before all taxes to close at Rs. 2.1 billion. The bank’s aggregate tax contribution of Rs. 1.21 billion accounted for a significant 57% of the bank’s Operating Profit before all Taxes.
Building on the momentum of advances growth in 1Q and supported by the rising demand for non-interest-based banking, the bank recorded a commendable 20% or Rs. 22.7 billion increase in customer advances during 1H 2025 to close at Rs. 134.1 billion, whilst setting an industry benchmark with advances consisting of 67% of Total Assets. This performance was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratios of 1.2% owing to the bank’s effective risk management and underwriting standards, driven by its unique people-friendly and development-focused approach, the bank said.
The bank’s deposits grew by Rs. 15 billion to close the quarter with Rs. 169.3 billion while maintaining an industry-best CASA ratio of 44%. During the six-month period, the bank surpassed the Rs. 200 billion strategic milestone in Total Assets, closing at Rs. 200.5 billion as of 30 June 2025, thereby becoming one of the fastest banks in the country to reach this landmark.
Return on Equity and Return on Assets stood at 7.8% and 1.6%, respectively. Further, Amana Bank’s Common Equity Tier 1 ratio closed at 13.2%, whilst the Total Capital ratio was at 15.4%, well above the regulatory minimum requirement of 7% and 12.5% respectively.
During the quarter, Amana Bank was globally recognised as the ‘Most Impactful ICD Investee Company of the Year’ at the IsDB Group Private Sector Forum Awards 2025. This prestigious accolade—awarded among investee companies from 57 IsDB member countries—was a remarkable achievement, especially given that Sri Lanka is not a member state of the IsDB group. The accolade was bestowed recognising Amana Bank’s substantial contributions to Sri Lanka’s economic development, particularly through the empowerment of SMEs and other enterprises during challenging times, while also fostering job creation, advancing financial inclusion, promoting sustainability, and delivering meaningful CSR initiatives.
Commenting on the quarterly performance, Chairman Asgi Akbarally said: “Amana Bank’s consistent and resilient performance reflects the strength of our unique banking model and the trust our customers and stakeholders place in us. Surpassing Rs. 200 billion in Total Assets in a short period is a significant milestone, and we remain committed to supporting the nation’s economic progress through inclusive and sustainable financial solutions.”
Also sharing his thoughts, Managing Director/CEO Mohamed Azmeer stated, “We are pleased with our continued performance during the first half of 2025, especially the strong growth in profitability, advances, and customer deposits. Our development-focused approach, prudent risk management, and emphasis on empowering people and businesses have been key to this performance. Receiving global recognition from the IsDB Group further reinforces the meaningful impact we continue to make, not just financially but socially as well. We look ahead with confidence to build on this performance in the second half of the year, as we remain committed to enabling growth and enriching lives.”
