Amãna Bank recorded a successful first quarter, in which the Bank achieved a Profit Before Tax of Rs 92.5 million, reflecting a remarkable YoY growth of 83% from the corresponding period of 2016. The Bank’s Profit After Tax for the same period grew by 74% to reach Rs 66.6 million.
Growing its Financing Income by 41% YoY to achieve Rs 1.2 billion, 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. Net Financing Income during the first three months grew to Rs 562.4 million, corresponding to a YoY growth of 37%, while its Net Fee and Commission Income grew by 22% to record Rs 57.9 million. Net Operating Income of the Bank reached Rs 679.4 million reflecting a healthy growth of 19.3% from Q1 2016. The increase in Total Operating Expenses was maintained within 5% when compared with Q1 2016.
During the first three months, the Bank grew its Total Assets to read at Rs 57.0 billion. The demand for the Bank’s array of products and services continued to grow, which prompted the upward movement of its Deposits and Advances portfolio to close at Rs 49.1 billion and Rs 40.0 billion respectively. The Bank continued to maintain a Gross Non-Performing Advances Ratio of 0.86%, considered to be the lowest in the industry.
The Bank recently announced a Rights Issue to support its growth and comply with the regulatory capital requirements. Subject to CSE and shareholder approval, the Bank plans to issue 1,250,695,267 new shares at Rs 3.80 per share in a ratio of one new ordinary share for every one ordinary share held. Along with the participation of identified foreign and local investors, a full subscription to the issue will result in the Bank’s Stated Capital surpassing Rs 10 billion, thereby crossing the regulatory capital requirement set for 2018 well in advance.
The Bank’s Chief Executive Officer Mohamed Azmeer said “I am happy to note that in line with its 5 years Strategic Plan, the Bank has been successful in maintaining its upward momentum. This reflects the growing acceptance of our people friendly banking model. I am confident the numbers we have achieved will add impetus to our forthcoming rights issue, which in turn, will support the future expansion of the business. I wish to thank our valued customers for their loyalty and continued patronage, as well as our team for their tenacity and commitment”.
Amãna Bank is the country’s first Licensed Commercial Bank to operate in complete harmony with the globally growing non-interest based banking model. With the mission of Enabling Growth and Enriching Lives, the Bank reaches out to its customers through a growing network of 28 branches and 3800+ ATM access points and has introduced a bouquet of customer conveniences such as Internet & Mobile Banking, Debit Card with SMS alerts, Saturday Banking, Extended Banking Hours, 24x7 Cash Deposit Machines and Banking Units Exclusively for Ladies.
Fitch Ratings, in October 2016, affirmed the Bank’s National Long Term Rating of BB(lka) with a Stable Outlook. The Bank was recognized as the Best ‘Up-and-Comer’ Islamic Bank of the World by ‘Global Finance Magazine’ at the 18th Annual World’s Best Banks Award Ceremony held in Washington DC, USA. The Bank was also bestowed the coveted title ‘Islamic Finance Entity of the Year 2016’ at the inaugural Islamic Finance Forum of South Asia Awards Ceremony.
Powered by the stability and support of its strategic shareholders including, Bank Islam Malaysia Berhad, AB Bank in Bangladesh and The Islamic Development Bank based in Saudi Arabia, Amãna Bank is making strong inroads within the Sri Lankan banking industry and is focused on capitalizing the growing market potential for its unique banking model across the country.