August, 11, 2019
Amãna Bank achieved a commendable 29% YoY growth in Profit After Tax for Q2 to close the quarter with a bottom-line of Rs 162.2 million compared to Rs 125.5 million recorded in the corresponding period of 2018. Despite the higher tax regime applicable to the Banking Industry which accounted for 60% of the Banks Operating profits, Profit After Tax for the first half of 2019 reached Rs 288.8 million, on par with the 2018 H1 Profit After Tax of Rs 288.3 million.
Profit Before Tax grew by 33% YoY to reach Rs 231.8 million from Rs 174.3 million recorded in Q2 of 2018. This bottom-line achievement is owing to the Banks continued growth in its core banking activities, where Financing Income for Q2 recorded a growth of 19% YoY to reach Rs 1.9 billion, which resulted in a H1 growth of 20% YoY to reach Rs 3.8 billion. Net Financing Income for Q2 and H1 grew by 5% YoY to reach Rs 831.6 million and 7% YoY to reach Rs 1.7 billion respectively. Net Operating Income grew by 24% YoY in Q2 to post Rs 1.1 billion while growing by 17% YoY during H1 to reach Rs 2 billion. Operating Profit before VAT, NBT and Debt Repayment Levy for the same periods grew by 37% in Q2 and 17% in H1 to reach Rs 408.4 million and Rs 723.8 million respectively.
The Bank was successful in overcoming the challenging market conditions by growing its Customer Deposits for the first six months by 12% to close at Rs 69 billion whilst the Advances portfolio grew by 7% during the same period to close at Rs 56.5 billion. As a result, the Bank’s Total Assets grew by Rs 5.3 billion to close the quarter at Rs 82.6 billion.
With the overall banking industry being challenged with high non-performing advances due to the current market context, Amãna Bank’s Gross Non Performing Advances and Net Non Performing Advances saw an increase to stand at 3.58% and 1.45% respectively, well within the industry norms. The regulatory capital ratios remained sound as the Bank closed the quarter with a Total Capital Ratio of 17.1%. The Bank’s Return on Equity improved to 4.8% from 4.6% recorded in December 2018.
Commenting on its first-half performance, the Bank’s Chief Executive Officer Mohamed Azmeer said “Despite challenging market conditions that tested the resilience of business across all sectors and industries, I am pleased to witness the profit momentum being sustained. Such resilience and profit momentum will enable us to duly reward all our stakeholders consistently, to whom we are extremely thankful”.
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 2019, affirmed Amãna Bank’s National Long Term Rating of BB(lka) with a Positive outlook. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the Bank
Photo caption: CEO - Amana Bank - Mohamed Azmeer