Pan Asia Bank delivers Rs. 3.59 b PAT, total assets grow 22% to nearly Rs. 375 b in 9-months

Chairman B. D. A. Perera (left), and Director/CEO Naleen Edirisinghe

Pan Asia Banking Corporation PLC has reported a strong set of results for the first nine months of 2026, recording a Profit After Tax (PAT) of Rs. 3.59 billion, up 19% from the corresponding period last year, underpinned by solid growth in lending, deposits and fee-based income, alongside further improvements in asset quality.

The Bank’s latest performance highlights its continued business momentum, with total assets expanding by 22% to Rs. 374.45 billion, placing it on the verge of the significant Rs. 375 billion milestone. The results reflect strengthening customer relationships, disciplined execution of growth initiatives and prudent balance sheet management in a gradually improving economic environment.

Growth remained broad-based across the Bank’s core operations. Net Interest Income rose 12% to Rs. 10.68 billion, driven by the expansion of the lending portfolio and higher business volumes. Meanwhile, Net Fee and Commission Income increased 17% to Rs. 2.18 billion, supported by stronger trade finance activity, increased card usage and higher transaction volumes across key customer segments.

Operating Profit before Taxes on Financial Services reached Rs. 6.24 billion, an increase of 9%, while Earnings Per Share improved by 19% to Rs. 8.12, reflecting the Bank’s ability to translate business growth into stronger shareholder returns.

The Bank’s balance sheet continued its upward trajectory during the period. Net loans and advances increased by 17% to Rs. 243.45 billion, supported by healthy demand from corporate, SME and retail customers. Customer deposits grew by a robust 19% to Rs. 274.89 billion, demonstrating the confidence placed in the Bank by its growing customer base and further strengthening its funding franchise.

Beyond growth, the Bank recorded notable progress in credit quality, an area that has become increasingly important as the banking sector focuses on sustaining asset quality gains achieved in recent years. Pan Asia Bank’s Gross Stage 3 Loan Ratio improved to 3.67% from 4.62%, while the Net Stage 3 Loan Ratio improved to 1.44% from 1.73%. The Bank also maintained a strong Stage 3 Provision Coverage Ratio of 60.87%, reflecting its continued commitment to prudent provisioning and conservative risk management.

Management attributed the improvement to stronger credit underwriting practices, proactive portfolio monitoring, focused recovery efforts and favourable macroeconomic developments. Lower impairment charges during the period further supported earnings growth, while ongoing refinements to the Bank’s Expected Credit Loss models enhanced the accuracy and risk sensitivity of impairment assessments.

The strength of the Bank’s core banking franchise was particularly evident during a period when treasury-related income remained under pressure due to the upward movement of government securities yields. Despite lower gains from trading activities and the sale of investment securities, Pan Asia Bank’s diversified revenue streams enabled it to maintain healthy earnings growth and profitability.

Key profitability indicators remained at healthy levels, with the Bank recording a Net Interest Margin of 4.16%, a Return on Assets (before tax) of 1.83%, and a Return on Equity of 15.25%. These ratios reflect the Bank’s ability to generate sustainable returns while maintaining a balanced approach to growth and risk.

The Bank also continued investing in technology, digital transformation and operational enhancements aimed at strengthening long-term competitiveness. While these investments contributed to higher operating expenses, management views them as critical enablers of future growth, efficiency and service excellence. Increased adoption of digital channels, process automation initiatives and upgrades to business platforms continued to support improvements in productivity and customer experience.

Importantly, Pan Asia Bank ended the period with capital and liquidity levels well above regulatory requirements, providing a strong foundation for future expansion. The Common Equity Tier 1 Ratio and Tier 1 Ratio stood at 14.34%, while the Total Capital Ratio reached 15.67%, significantly exceeding minimum regulatory thresholds. These strong capital positions provide the Bank with ample capacity to support balance sheet expansion, absorb unexpected shocks, and pursue strategic growth opportunities while maintaining financial resilience.

Liquidity indicators remained equally robust. The Bank reported an All Currency Liquidity Coverage Ratio of 138.98%, a Rupee Liquidity Coverage Ratio of 138.92%, and a Net Stable Funding Ratio of 119.14%. The Leverage Ratio stood at 7.54%, underscoring the Bank’s balance sheet strength and financial resilience.

Chairman B. D. A. Perera said the results reflected the strength of the Bank’s governance framework, disciplined strategic direction and prudent stewardship of shareholder capital. He noted that the combination of strong balance sheet growth, improving asset quality and robust capital buffers provides a solid platform for sustainable long-term value creation and enhanced shareholder returns.

Director/CEO Naleen Edirisinghe described the performance as a reflection of the Bank’s strong business momentum and disciplined execution across its core banking segments. He emphasized that the Bank remains focused on deepening customer relationships, expanding quality business volumes and investing in digital capabilities that will enhance operational efficiency and elevate customer experience.

Looking ahead, Pan Asia Bank enters the final quarter of 2026 with considerable momentum. Supported by strong earnings, healthy loan and deposit growth, improved credit quality and a solid capital position, the Bank appears well positioned to pursue further expansion while maintaining prudent risk management standards.

As total assets approach the Rs. 375 billion mark, the Bank continues to strengthen its position among Sri Lanka’s leading domestic commercial banks. With a growing customer franchise, diversified revenue base and resilient balance sheet, Pan Asia Bank is poised to sustain its growth trajectory and deliver long-term value to shareholders, customers and the broader economy.