May, 15, 2019
~ Financing Income up by 21%
Amãna Bank recorded a successful first quarter as it posted a Profit Before Tax of LKR 180.8 million and a Profit After Tax of LKR 126.6 million, despite challenging conditions that prevailed in the market.
The Bank continued its growth momentum in core banking operations during the quarter, leveraging on its strategic focus of being primarily an SME and Retail Bank. The Bank’s Financing Income for the first three months grew by 21% YoY to achieve LKR 1.8 billion, ably supported by growth in advances of LKR 4.8 billion during the same period, reflecting the increasing acceptance and demand for the Bank’s people friendly banking model. Net Financing Income for the same period grew by 8% YoY to reach LKR 858.2 million whilst Net Operating Income, after accounting for income from non-core banking activities and impairment charges, grew by 11% YoY to close the quarter at LKR 952.1 million. Operating Profit before VAT, NBT and Debt Payment Levy for the same period ended at LKR 315.4 million, of which approx. 60% or LKR 188.8 million was accounted as total tax expenses, reflecting the higher taxation policy on the banking industry.
During the period, the Bank grew its Total Assets to LKR 78.1 billion. The Bank’s core banking business continued its upward trend as customer deposits and advances recorded healthy progress, closing the quarter at LKR 63.0 billion and LKR 57.6 billion respectively.
With the overall banking industry being challenged with high non-performing advances, Amãna Bank’s Gross Non Performing Advances and Net Non Performing Advances continued to remain well below industry to stand at 2.95% and 1.02% respectively, as a result of the Bank’s asset-backed financing model, prudent credit risk management and proactive resource allocation towards effective collections. The regulatory capital ratios remained sound as the Bank closed the quarter with a Total Capital Ratio of 17.7%.
Commenting on its Q1 results, the Bank’s Chief Executive Officer Mohamed Azmeer said “Despite the challenging economic environment, Amãna Bank has completed a commendable first quarter, where we continued to witness increased demand for our people friendly banking services. I am confident that this performance which has been achieved in such a backdrop will give added momentum for the rest of the year, ensuring our alignment to the targets set out in our 5 year strategic plan. I am thankful to our staff for their continued support to achieve this growth.”
Amãna 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 IDB Group being the principal shareholder having a 29.97% stake of the Bank. The IDB Group is a ‘AAA’ rated multilateral development financial institution with an authorized capital base of over USD 150 Billion which has a membership of 57 countries. Fitch Ratings, in June 2018, affirmed Amãna Bank’s National Long Term Rating of BB(lka) while revising its outlook to Positive from Stable. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the Bank.
Photo caption: Amana Bank CEO Mohamed Azmeer