Amana Bank posts best-ever performance in 2025

• PBT grows 47% to cross Rs. 4 b with PAT reaching Rs. 2.4 b and ROE 10.4%
• Advance records 36% growth while maintaining low NPA of 1.2%
• Achieves global accolade for being amongst Top 50 Strongest Islamic Banks of the World

Chairman Asgi Akbarally	Managing Director/CEO Mohamed Azmeer

Amana Bank has delivered a landmark year of performance in 2025, with PBT growing by a robust 47% to close at Rs. 4.1 billion while PAT grew by 40% to reach Rs. 2.4 billion, marking its highest recorded profitability since inception in 2011. 

Operating Profit Before All Taxes rose by 45% YoY to Rs. 5.5 billion. The bank’s aggregate tax contribution of Rs. 3 billion accounted for a significant 55% of the bank’s Operating Profit before all taxes.

On the bank’s top-line performance, Net Financing Income grew by 21% YoY to reach Rs. 8.3 billion, supported by a healthy financing margin of 4.3%. Net Fee and Commission Income also recorded strong momentum, growing by 27% YoY to Rs. 1.4 billion. As a result, Total Operating Income increased by 16% to reach Rs. 10.1 billion, while Net Operating Income went up by 27%, closing the year at Rs. 10.7 billion. With the bank’s continued focus on cost containment, operational efficiency strengthened further, reflected in the Cost-to-Income Ratio improving to 51.8% from 53% in 2024. Reinforcing its strong financial trajectory, the bank reported Total Comprehensive Income of Rs. 2.9 billion, marking an impressive 66% YoY growth.

Operating within a growth-oriented economic landscape, the bank continued to focus on SMEs – a key sector of the national economy – thereby recording a commendable 36% or Rs. 39.6 billion surge in customer advances during the year. Consequently, total advances reached Rs. 150.9 billion, accounting for 74% of Total Assets, thereby positioning the bank as the industry highest in core banking activities connecting to the real sector — a clear testament to its development-focused banking approach.

This performance was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratio of 1.2% 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. 18 billion to close at Rs. 172 billion while maintaining an industry best CASA ratio of 45%. The bank’s Total Assets closed at Rs. 204.3 billion, reflecting a 12% growth for the year.

Reinforcing its sustained upward profitability trend, the bank’s Return on Equity improved from 8.0% in FY 2024 to 10.4% in FY 2025, reaching double digits for the first time. Return on Assets also strengthened from 1.6% to 2.1%, reflecting enhanced earnings efficiency. The bank’s capital position remained robust, with the Common Equity Tier 1 Ratio closing at 13.0% and the Total Capital Ratio at 14.7% — comfortably above the regulatory minimum requirements of 7% and 12.5%, respectively — underscoring the bank’s financial stability and resilience. Liquidity buffers remained strong as at year-end 2025, with the Liquidity Coverage Ratios for Rupee and All Currency standing at 330.3% and 231.5%, respectively, and the Net Stable Funding Ratio at 142.5%, all comfortably exceeding the regulatory minimum requirement of 100%.

During 2025, the bank continued to receive strong local and international recognition for its contribution towards Sri Lanka’s economic development—particularly in empowering SMEs, driving financial inclusion, promoting sustainability and delivering impactful CSR initiatives. In addition to being recognised amongst the Top 50 Strongest Islamic Banks in the World by The Asian Banker, other notable accolades include ‘The Most Impactful ICD Investee Company’ at the IsDB Private Sector Forum Awards comprising 57 countries, ‘Best Bank in Sri Lanka’ and ‘Best Performance in Asset Quality’ at the ICC Emerging Asia Banking Awards adjudicated by PwC, and ‘Bank of the Decade’ at the Islamic Finance Forum of South Asia Awards 2025. 

The bank continued to maintain its investment-grade credentials, retaining a rating of BBB-(lka) with a Stable Outlook from Fitch Ratings and a BBB+ rating with a Stable Outlook from Lanka Rating Agency. 

Towards creating value to its shareholders, Amana Bank declared its 8th successive interim dividend of Rs. 1.30 per share with a dividend yield of 4.3% and pay-out ratio of 29%. Moreover, the share price has also been reflective of the Bank’s consistent performance and growth trajectory, as it increased by over 20% to close the year at Rs. 30 per share compared to Rs. 24.60 per share as at end 2024.

Chairman Asgi Akbarally said: “The year 2025 will be remembered as a defining chapter in Amana Bank’s journey — not merely for surpassing the Rs. 4 billion milestone in PBT and achieving double digit ROE, but for demonstrating the strength and maturity of our business model. Our progress reflects a strategy anchored on stability, prudent governance and long-term value creation. I extend my sincere appreciation to my fellow Directors, Sharia Supervisory Council, our management, and staff for their dedication and commitment, as well as to our customers and shareholders for their continued loyalty and belief in our journey. As we enter our 15th year of operations in 2026, we remain committed to driving sustainable growth while delivering value to all those we serve.”

Managing Director/CEO Mohamed Azmeer said: “Our record performance in 2025 reflects the impact we have created by strengthening our market position, elevating customer experience, reinforcing prudent risk management and driving operational excellence across the Bank. We remain committed to offering a people-friendly and development-focused banking experience that empowers individuals and businesses alike — a commitment that continues to shape our growth journey. By staying disciplined in our approach and agile in execution, we have built strong momentum that positions us confidently for the future. I would like to extend my heartfelt gratitude to our Chairman and Board of Directors for their guidance and oversight, our Sharia Supervisory Council members for their advice, our management and staff for their relentless efforts, and our valued shareholders and customers for their continued confidence and trust. We are excited about the opportunities that lie ahead as we enhance our value proposition and expand our footprint.”