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Amana Bank records best ever quarterly performance in Q1 2022

Amãna Bank May 17, 2022

PAT up 92% | PBT up 78% | Deposits up 10% | Advances up 14%

Amana Bank PLC recorded its best ever quarterly performance since inception recording an impressive 78% YoY growth in Profit Before Tax (PBT) and a 92% YoY growth in Profit After Tax (PAT). This remarkable performance within the quarter amidst an environment of economic challenges was enabled through double digit growth, both in deposits and advances which testifies once again to the resilience and growing acceptance of the Bank’s unique people friendly banking model.  

Having surpassed the LKR 1 billion PBT, milestone in record time in 2021, Amana Bank continued its positive trend into Q1 2022 with a PBT of LKR 385.8 million and a PAT of LKR 250.7 million compared to PBT of LKR 217.1 million and PAT of LKR 130.6 million booked in Q1 2021.

The double digit growth in both Customer Advances and Customer Deposits was aided by the Bank’s strong focus on the SME segment, which is the most vital sector in driving economy growth and revival. With Customer Deposits crossing the LKR 100 billion milestone during Q1 2022, the Bank went on to achieve a sound growth of 10% in deposits to close at LKR 106.0 billion, while Customer Advances closed the quarter at LKR 86.7 billion, reflecting an impressive three-month growth of 14%.

Owing to its advances growth being well supported by a healthy financing margin of 3.5%, the Bank’s Net Financing Income grew by a solid 26% YoY to close the quarter at LKR 1.1 billion compared to LKR 891.9 million achieved during the corresponding period of 2021. Despite import controls and challenges in the foreign currency market, which impacted Fee and Trading Income, the Bank achieved a 41% YoY growth in Total Operating Income to reach LKR 1.46 billion, while Net Operating Income after accounting for adequate impairment, grew by 30% to LKR 1.22 billion.

Despite headline inflation being in excess of 21% in March 2022, the Bank contained the increase in its operating expenses to 8%. Following this, the Bank recorded a 75% YoY growth in Operating Profit before VAT on Financial Services to reach LKR 541.4 million. The Bank’s aggregate tax contribution of LKR 290.7 million for Q1 accounted for 54% of the Bank’s Operating Profit before all taxes.  

The Bank’s Total Assets as at end of 31 March 2022 stood at LKR 139.6 billion, reflecting a noteworthy enhancement of 14% during the quarter. The Bank continued to place great emphasis on portfolio management and recoveries through timely customer engagement which resulted in containing non-performing advances (NPA) well below the industry averages with Net NPA and Gross NPA ratios of 0.5% and 2.8% respectively. The Bank’s Total Capital Ratio stood at a healthy 14.4% as at Q1 2022, well above the minimum regulatory requirement of 12.5%.

Commenting on its Q1 2022 performance, the Bank’s Managing Director/CEO Mohamed Azmeer said “I am humbled and honoured by the Bank’s remarkable Q1 performance, which is our best quarterly performance to date, especially considering that same has been achieved during a challenging period marred by economic uncertainties. I strongly believe that our people friendly banking solutions are better grounded to endure the current economic challenges. Since 2018, our economy has undergone multiple challenges, but it is the learnings from those challenges that have moulded and prepared us to be more robust, resilient and grounded to face the realities”.  

Commenting on this occasion, Chairman of Amana Bank Asgi Akbarally said “In gratitude for the trust and confidence placed towards the Bank, we would like to affirm that Amana Bank along with the support and engagement of our committed staff are steadfast to stand by and support our customers to overcome this period of economic adversities, by understanding their needs and providing equitable financial solutions, which currently is a matter of national importance, and thereby contribute towards ensuring a better tomorrow for everyone.”

Amana 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 having a 29.97% shareholding 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, Amana Bank is recognised amongst the Top 50 Strongest Islamic Bank’s in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions.

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