Amãna Bank delivers strong Q1 performance

• Records highest ever Q1 PBT of Rs. 739 m and PAT of Rs. 434 m 
• Advances up by 13% or Rs. 14 b to Rs. 125 b

Amãna Bank said yesterday it continued its performance growth trend in the first quarter of 2025, recording its highest ever Q1 Profit Before Tax (PBT) and Profit After Tax (PAT) of Rs. 739.4 million and Rs. 434.1 million respectively. 

Net Financing Income grew by 8% to reach Rs. 1.95 billion despite declining market rates maintaining a healthy financing margin of 4.2%, marking an improvement from 2024 YE financing margin of 4%. With a contribution of Rs. 304.4 million in Net Fee and Commission Income and Rs. 129.7 million in Net Trading Income, the bank went on to record a Total Operating Income of Rs. 2.38 billion. 

In a statement, Amana Bank said driven by enhanced portfolio quality, improved operating environment and proactive customer engagement, the bank reduced its Impairment Charge by 45% YoY, closing the quarter at Rs. 134.2 million, thereby contributing to a 6% growth in Net Operating Income, which reached Rs. 2.24 billion for the quarter. Maintaining a cost to income ratio of 52%, the bank went on to surpass the 1 billion mark in Operating Profit before all taxes. The bank’s aggregate tax contribution of Rs. 583.5 million accounted for a significant 57% of the bank’s Operating Profit before all taxes. 

The highlight of Q1 2025 was the bank’s exceptional growth in its advances book which was complemented by the growing demand for non-interest based banking. As a result, the bank’s advances grew by 13% or Rs. 14 billion during the three months to cross the Rs. 125 billion mark whilst setting an industry benchmark with advances contributing 66% of Total Assets. This performance was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratio of 1.3% owing to the bank’s effective risk management and underwriting framework, driven by its unique people friendly and development focused approach. 

The bank’s deposits grew by nearly Rs. 5 billion to close the quarter at Rs. 159.1 billion while maintaining an industry best CASA ratio of 43%. The bank’s Total Assets grew by Rs. 7 billion or 4% to post Rs. 189.3 billion by end of Q1 2025.

The bank’s Return on Equity and Return on Assets read as 7.6% and 1.6%, respectively. Further, Amãna Bank’s Common Equity Tier 1 ratio stood at 13.6%, whilst Total Capital ratio was at 15.9%, well above the regulatory minimum requirement of 7% and 12.5% respectively. 

Chairman Asgi Akbarally said: “Our first quarter results reflect the strong foundation and prudent strategies that continue to drive Amãna Bank forward. In the face of a challenging market environment, we have delivered solid growth in advances while maintaining our hallmark asset quality. The positive affirmation of our credit ratings further reinforces the growing confidence in our resilient business model ensuring long-term sustainability.”

Managing Director/CEO Mohamed Azmeer said: “We are pleased to have commenced 2025 on a strong note delivering solid growth in advances and deposits. By strategically growing advances early in the year, we are in a position to optimise margins and drive profitability from the outset, which would result in improved Financing Income and profitability during the rest of the year. This achievement is a result of the commitment of our team, the loyalty of our customers, and the trust placed on us by our shareholders, to all of whom I extend my sincere appreciation. Our momentum in Q1 has laid a solid foundation for further growth in the coming quarters, as we continue to serve the evolving needs of our customers through our unique, people-friendly banking model.”