Recording its best ever quarterly performance, Amana Bank PLC continued its strong profitability trend in 2023 as it closed the nine months ending 30 September 2023 with a Profit Before Tax (PBT) of LKR 1.68 billion reflecting a significant 78% YoY growth from LKR 940.0 million posted a year back as per the interim financials announced to the Colombo Stock Exchange. The Bank in Q3 alone accounted to an all-time high quarterly PBT of LKR 874.0 million which is an impressive 128% growth against LKR 383.0 million achieved in Q3 of 2022.
This performance was a result of the Bank’s continued support towards SME, Corporate and Retail sectors facilitating their needs while adding value to the economy at this crucial juncture where the country’s economic revival is taking shape.
After a total tax pay out of 65%, the Bank achieved a 9-month Profit After Tax (PAT) of LKR 891.5 million, up by 48% from LKR 600.5 million posted last year. The Bank’s Q3 PAT grew by a notable 98% to LKR 471.9 million from LKR 238.5 million. As a result of this impressive performance, the Bank’s Return on Equity surpassed 8% as at Q3 2023, compared to 5.6% as at YE 2022.
The Bank maintained a strong top line performance supported by effective deployment of funds and improved demand for credit which resulted in a 60% YoY growth in Financing Income to reach LKR 12.97 billion from LKR 8.09 billion achieved a year back. Improving its Financing Margin to 4.5% from 3.6%, the Bank recorded a Net Financing Income of LKR 4.85 billion, reflecting a 56% YoY increase.
Net Fee and Commission Income and Net Trading Income posted were LKR 701.4 million (36% YoY growth) and LKR 1.17 billion (83% YoY growth) respectively, resulting in the Bank’s Total Operating Income to grow by a significant 58% to reach LKR 6.74 billion. Despite providing for a higher level of impairment, the Bank grew its Net Operating Income by 51% to reach LKR 5.29 billion from LKR 3.49 billion reported 12 months back. The Bank posted a commendable YoY growth of 92% in Operating Profit Before all taxes to reach LKR 2.54 billion compared to LKR 1.32 billion achieved a year back.
In the backdrop of tight liquidity conditions in the market, Amana Bank continued to witness an increase in acceptance for its people friendly banking model, resulting in Customer Deposits growing by LKR 15.8 billion or 14% during the nine months to close the quarter with a portfolio of LKR 128.3 billion, maintaining a healthy CASA ratio of 40%. With the gradual expansion of private sector credit growth and easing of import restrictions, the Bank’s advances portfolio recorded a 5% growth to close at LKR 87.1 billion. Owing to timely customer engagement and effective portfolio management, the Bank continued to have one of the lowest industry-wide Stage 3 Impaired financing ratio of 1.6%.
The Bank’s Total Assets as at end of 30 September 2023 stood at LKR 148.3 billion, while Shareholders Funds exceeded LKR 15 billion.
Commenting on the Bank’s quarterly performance Chairman Asgi Akbarally stated “As we record our best ever quarterly performance Amana Bank’s outstanding results reflects the essence of our commitment to excellence. Our growth trajectory is a testament to the Bank’s pursuit of growing our unique people friendly banking model. We extend our gratitude to all stakeholders who have been pivotal to our journey.”
Also sharing his views the Bank’s Managing Director/CEO Mohamed Azmeer said “Amana Bank's remarkable performance in Q3 stands as a testament to our resilience in the face of a challenging environment. Our pursuit of value-driven solutions and people friendly banking principles has fuelled this exceptional growth, demonstrating our dedication to making a meaningful impact across all stakeholders. I am thankful to my fellow Directors, management, staff, shareholders and customers for their continued support, trust and confidence. With optimism, we look forward to end 2023 with an even better performance as we continue our mission of enabling growth and enriching lives.”
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. The IsDB Group is a USD ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Testifying to its position as a leading practitioner of the non-interest based banking model, Amãna Banks continued to be recognized amongst the Top 100 Strongest Islamic Bank’s in the World by The Asian Banker. Fitch Ratings in October 2023, affirmed Amãna Bank’s National Long Term Rating of BB+(lka) while assigning a stable outlook.
Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.
