Wednesday Dec 17, 2025
Wednesday Dec 17, 2025
Thursday, 13 November 2025 00:02 - - {{hitsCtrl.values.hits}}
Managing Director/CEO Mohamed Azmeer
Amana Bank continued its strong profitability momentum by nearly doubling its profits in 3Q to reach a year-to-date (YTD) Profit-Before-Tax (PBT) of Rs. 2.7 billion (39% YoY) and PAT of Rs. 1.6 billion (44% YoY), setting a new record by achieving the bank’s 2024 full-year PBT in nine months. During 3Q, PBT soared by 91% YoY to Rs. 1.2 billion and after taxation, profit stood at Rs. 0.7 billion, recording a 98% YoY growth.
On the bank’s top-line performance, Net Financing Income during 3Q grew significantly by 42% YoY to reach Rs. 2.26 billion, resulting in a 19% YoY increase in Net Financing Income for the nine months ended 30 September 2025 to reach Rs. 6.1 billion, supported by a healthy financing margin of 4.2%.
The bank’s Net Fee and Commission Income recorded strong growth of 53% YoY during 3Q to reach Rs. 417.1 million and 35% YoY during the nine months to surpass the Rs. 1 billion mark. This contributed to Total Operating Income rising to Rs. 2.8 billion in 3Q and Rs. 7.5 billion as of 30 September 2025, translating to a YoY growth of 34% and 15% respectively.
The resultant impact of improved business environment, proactive customer engagement, and strengthened portfolio quality, enabled the Bank to achieve a reversal in its Impairment Charges, leading to a 49% increase in Net Operating Income to Rs. 3 billion for 3Q and a 24% increase to Rs. 7.6 billion for the nine months ended 30 September 2025.
The bank improved its Cost-to-Income Ratio to 49% in 3Q, while also strengthening its overall ratio to 51% as of 30 September 2025, compared to 52% recorded at the end of both Q1 and H1 2025 and 53% in 2024.
This improvement resulted in the bank’s Operating Profit Before All Taxes reaching Rs. 3.8 billion for the 9 months and Rs. 1.7 billion for 3Q, reflecting year-on-year growth of 40% and 91%, respectively. Reinforcing its strong financial trajectory, the bank recorded a Total Comprehensive Income of Rs. 1.9 billion for the period, reflecting 70% YoY growth.
The bank recorded a commendable 30% increase or Rs. 33.2 billion growth in customer advances during the 9 months, thereby contributing to the national economy through the bank’s development-focussed financing model, to close advances at Rs. 144.5 billion, while also setting an industry benchmark of 71% of Total Assets consisting of Advances.
This performance was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratio of 1.1% owing to the bank’s effective risk management and underwriting standards, driven by its unique people friendly approach.
The bank’s deposits grew by Rs. 15 billion to close the quarter with Rs. 169.5 billion while maintaining an industry best CASA ratio of over 43%. The bank’s Total Assets which recently crossed the milestone of Rs. 200 billion, closed at Rs. 202.6 billion as of 30 September 2025, an 11% growth from YE 2024.
Reinforcing its upward profitability trend, the bank’s Return on Equity climbed to 9.0%, with Return on Assets rising to 1.9%. The bank’s Common Equity Tier 1 ratio closed at 12.7%, whilst Total Capital ratio was at 14.6%, well above the regulatory minimum requirement of 7% and 12.5% respectively, testifying the bank’s stability.
Further, the bank’s Liquidity Coverage Ratios - Rupee and All Currency stood at 234% and 173.1% respectively as at 30 September 2025, whilst the Net Stable Funding Ratio was 132.5%, all of which comfortably exceeded the minimum requirement of 100% each.
Recently, the bank paid its 8th successive interim dividend of Rs. 1.30 per share totalling to an all-time high pay-out of Rs. 716.5 million, continuing the trend of creating value to its shareholders.
During the quarter under review, Amana Bank emerged as the Best Bank in Sri Lanka at the prestigious Indian Chamber of Commerce (ICC) Emerging Asia Banking Awards 2025, adjudicated by PwC.
Competing within the robust local banking industry, this pinnacle award, recognises Amana Bank’s continuous performance and growth during the last three years, customer-centric approach, and pioneering role in promoting its non-interest based people friendly and development focussed banking model.
In addition to this coveted title, Amana Bank was also honoured with the award for Best Performance on Asset Quality, reflecting the bank’s disciplined credit management, prudent risk assessment, and strong financial resilience. The bank was also conferred the title ‘South Asia’s Islamic Bank of the Decade’ at the Islamic Finance Forum of South Asia Awards 2025.
Chairman Asgi Akbarally said: “Our strong financial performance in 2025 reaffirms the soundness of our strategy and our commitment to delivering sustainable value to shareholders. We have continued to enhance profitability while maintaining disciplined growth and a robust balance sheet, positioning Amana Bank as a resilient institution in a dynamic operating environment”.
He added: “This consistent trajectory of performance and purpose was further validated when the bank was recognised as the Best Bank in Sri Lanka at the ICC Emerging Asia Awards — an honour that celebrates the collective dedication of the Amana Bank Team.”
Managing Director/CEO Mohamed Azmeer said: “Our performance in 3Q, where profits nearly doubled, demonstrates the effectiveness of the bank’s focused execution of our plans. The significant growth in advances, achieved while maintaining one of the lowest Stage 3 impairment ratios in the industry, underscores the strength of our business model and disciplined portfolio management.”
“As we continue our journey, we remain committed to offering a people-friendly and development-focused banking experience that empowers individuals and businesses to progress with confidence and purpose. Building on this momentum, we remain optimistic of further elevating our performance and look forward to closing another year with resounding success,” he added.
Amana 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 IsDB Group being the principal shareholder of the bank. The IsDB Group is a ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest based banking model, Amana Banks continued to be recognized amongst the Top 25 Strongest Islamic Banks in the World by The Asian Banker.
Amana Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.
