COLOMBO : Advances grow by 24% with industry low Stage 3 Impairment
Deposit up by 16% with industry high CASA of 44%
PBT up by 21% to close at LKR 2.8 billion as PAT grows 28% to reach LKR 1.8 bn
Amana Bank PLC continued its robust performance to conclude 2024 on a strong note as the Bank recorded a Profit After Tax growth of 28% to reach LKR 1.8 billion from LKR 1.4 billion posted in 2023. Reflecting a healthy 21% growth, Profit Before Tax for the same period grew from LKR 2.3 billion to close at LKR 2.8 billion.
This strong bottom-line performance was achieved despite the impact of declining market rates. The Bank maintained a healthy financing margin of 4.0%, resulting in the Bank’s Net Financing Income improving by 6% to reach LKR 6.9 billion from LKR 6.5 billion a year ago.
Driven by trade volumes generated from our valued SME and Corporate customers as well as increased digital transactions and other value-added services, the Bank’s Net Fee and Commission income grew by 16% to cross the 1 billion milestone to close at LKR 1.1 billion. In the backdrop of excess USD liquidity in the market and the resultant drop in premium, the Bank reported a Trading Income of LKR 0.7 billion. With improvements in the operating environment and asset quality, supported by timely customer engagements, the Bank’s Impairment Charges reduced by 86% or from LKR 2.1 billion to LKR 0.3 billion, resulting in the Bank’s Net Operating Income increasing by 18% or LKR 1.3 billion to reach LKR 8.4 billion.
Despite increase in operating expenses mainly connected with the Bank’s drive to expand its reach and related expenses, the Bank maintained a cost to income ratio of 53%, resulting in an 18% increase in Operating Profit before VAT on Financial Services and Social Security Levy to LKR 3.8 billion from LKR 3.2 billion in 2023. The Bank’s aggregate tax contribution of LKR 2.0 billion accounted for a significant 53% of the Bank’s Operating Profit before all taxes.
As a result of the growing demand for Bank’s people friendly banking model, Customer Advances grew significantly by 24% or LKR 21.6 billion as it crossed the 100 billion mark, ending the year with a portfolio of LKR 111.3 billion compared to LKR 89.7 billion in 2023. 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.
Crossing the 150 billion milestone, Customer Deposits recorded a noteworthy growth of 16% or LKR 21.5 billion to close the year on LKR 154.4 billion, while maintaining an industry high CASA ratio of 44%. The Bank’s Total Assets grew by LKR 22.9 billion or 14% YoY from LKR 159.5 billion in 2023 to post a solid LKR 182.3 billion as at end-December 2024.
