COLOMBO : Amana Bank continued to deliver a strong performance in Q1 2026, demonstrating resilience amidst a challenging economic environment impacted by the effects of Cyclone Ditwah and the instability in the Middle East. Amidst these challenges, Amana Bank recorded a Profit Before Tax of LKR 0.8 billion, reflecting a 14% YoY growth, while Profit After Tax surpassed LKR 0.5 billion, marking a 16% increase compared to the profitability recorded in Q1 2025.
On the Bank’s top line performance, Net Financing Income grew by 14% YoY to reach LKR 2.2 billion supported by a healthy financing margin of 4.4%. Net Fee and Commission Income continued its strong momentum, growing by 25% YoY to close Q1 at LKR 0.4 billion. As a result, Total Operating Income increased by 13% to reach LKR 2.7 billion, while Net Operating Income, after accounting for 31% reduction in impairment charges, went up by 16%, closing the quarter at LKR 2.6 billion. Despite the pressures arising from geopolitical tensions, which contributed to higher energy prices and exchange rate volatility resulting in the Bank’s cost to income ratio increasing to 54%, the Bank continued to demonstrate resilience by recording a 11% YoY growth in Operating Profit before all taxes to close Q1 at LKR 1.1 billion. The Bank’s aggregate tax contribution of LKR 0.6 billion accounted for a significant 56% of the Bank’s Operating Profit before all taxes.
The Bank consolidated its balance sheet performance, with Customer Advances growing to LKR 152.3 billion largely driven by the Bank’s SME financing portfolio, which continues to support a key sector of the national economy. The Bank’s Stage 3 Impairment Ratio (NPA) of 1.2% remained one of the lowest in the industry as a result of the Bank’s effective risk management and underwriting standards, driven by its unique development focussed and people friendly approach to banking. Customer Deposits closed the quarter at LKR 170.8 billion while maintaining an industry high CASA ratio of 44%.
Reinforcing its sustained upward profitability trend, the Bank’s Return on Equity improved from 7.6% in Q1 2025 to 8.1% in Q1 2026, while Return on Assets read at 1.7%. The Bank’s capital position remained robust, with the Common Equity Tier 1 Capital Ratio closing at 13.2% and the Total Capital Ratio at 14.9% — comfortably above the regulatory minimum requirements of 7% and 12.5%, respectively — underscoring the Bank’s financial profile and stability. Liquidity buffers remained strong as at Q1 2026, with the Liquidity Coverage Ratios for Rupee and All Currency standing at 242.4% and 173.9%, respectively, and the Net Stable Funding Ratio at 142.4%, all comfortably exceeding the regulatory minimum requirement of 100%.
Towards advancing its sustainability agenda, the Bank continued to support the OrphanCare initiative by contributing a part of its profits, reflecting its belief that savings orphans from a second abandonment is not just a charity, but a responsibility. OrphanCare is guided by Article 2 of the United Nations Convention on the Rights of the Child, ensuring that all enrolments takes place without discrimination based on race, religion, ethnicity, region etc. Further strengthening its sustainability efforts, the Bank continued financing activities in alignment with the Central Bank of Sri Lanka’s Sustainable Finance Road Map and Green Finance Taxonomy guidelines. In support of the Central Bank’s Financial Literacy Road Map, the Bank also carried out over 30 financial literacy programmes during the quarter, reaching more than 4,000 individuals including students, undergraduates, MSMEs, women entrepreneurs and community groups. Towards enhancing sustainability reporting practices, the Bank has already established the SLRFS S1 & S2 reporting framework.
Commenting on the Bank’s Q1 performance Chairman Asgi Akbarally said “Despite the external challenges experienced during the quarter, the Bank continued to demonstrate resilience and stability, recording its best-ever Q1 performance while further strengthening its balance sheet fundamentals. These results reflect the strength of our unique non-interest based banking model, which remains firmly centred on fairness, responsible growth and creating sustainable value for all stakeholders.”
Also sharing his insights on the Bank’s performance Managing Director/CEO Mohamed Azmeer quoted “Our strong profitability performance in Q1 2026 reflects the Bank’s continued strategic focus on quality growth, disciplined risk management and customer-centric banking. The sustained growth in our financing portfolio, particularly within the SME sector, together with one of the industry’s lowest impairment ratios and a strong CASA position, signifies the resilience of our development focussed and people friendly approach to banking whilst continuing to support Sri Lanka’s economic progress. Importantly, this Q1 performance has laid a strong foundation for the Bank’s growth momentum for the rest of the year, where we will continue to strengthen our focus on the SME sector, which remains well aligned with our banking model and strategically important towards the revival of the national economy. Further advancing financial inclusion and digital accessibility, the Bank will continue to expand its outreach to rural communities through its growing Self Banking Centre network, having already opened five new Self Banking Centres during the year thus far. On behalf of the management, I wish to extend my sincere appreciation to our Board of Directors for their guidance, our employees for their dedication, our customers for their trust and confidence, and our shareholders for their continued support towards the Bank’s sustained progress.”
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 IsDB Group being the principal shareholder of the Bank. The IsDB Group is a ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest based banking model, Amãna Banks continued to be recognized amongst the Top 50 Strongest Islamic Banks in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.
