Amãna Bank continued its profitability trend in Q1 2016 by achieving a Profit Before Tax of LKR 50.5 million for the first three months ending 31 Mach 2016, showcasing a significant growth of 119% compared to the profits earned in the corresponding period in 2015. Recording a 66% increase, the Bank’s post-tax profit for the quarter stood at LKR 38.2 million from LKR 23.1 million achieved twelve months ago.
The Bank, which operates on the concept of non-interest based banking, also witnessed commendable results in its top line performance. Financing Income continued to be impressive with a growth of 30.7% from LKR 661.1 million in Q1 2015 to LKR 864.2 million whilst Net Financing Income from core banking recorded LKR 408.5 million in Q1 2016. Net Fee and Commission Income, through focused business strategies, increased by 38% to record LKR 47.5 million as opposed to LKR 34.4 million in the corresponding period of 2015. Net Operating Income of the Bank reached LKR 569.4 million reflecting a growth of 26.8% from Q1 2015.
During Q1, the Bank was also successful in surpassing the LKR 50 billion milestone in Total Assets to end the quarter at LKR 50.8 billion. In addition to this, the Bank’s Deposit and Advance portfolios continued its upward momentum and reached LKR 42.1 billion and LKR 34.7 billion respectively. Despite the growth in advances, the Bank continued to maintain an industry low Gross Non-Performing Advances Ratio of 0.91%.
Commenting on the Bank’s Q1 performance Chief Executive Officer Mohamed Azmeer said “I am pleased that the Bank has been successful in sustaining its growth and profitability trend. This is a good start for the year 2016 and surpassing the LKR 50 billion in Total Assets well ahead of time is a very significant milestone in our journey. This sustained performance of ours is owing to our strong customer engagement, business alignment, service focus, processes improvement, cost containment and optimization of resources while managing the overall risk which is in line with our strategic plan. I am thankful to our valued customers for their loyalty and continued patronage, as well as to our team for their hard work and commitment.”
Amãna Bank is the first Licensed Commercial Bank in Sri Lanka to operate in complete harmony with the non-interest based Islamic banking model and is listed on the Diri Savi Board of the Colombo Stock Exchange. Fitch Ratings, in October 2015, 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 2014 held in Washington DC, USA. 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.