In its latest rating review concluded in June 2018, Fitch Ratings Lanka has upgraded Amãna Bank’s rating outlook to Positive from Stable whilst affirming its National Long Term Rating at BB(lka).
According to the communiqué issued by Fitch Ratings “The Outlook revision on Amãna takes into account our expectation that the bank will continue to improve its financial profile on better profitability metrics and enhanced capital position arising from future capital raising.”
The Bank's profitability has consistently improved since breaking even in August 2014 and topped Rs 500 million in PAT for 2017, whilst recording a bottom line of Rs 162.8 million for Q1 2018. In this positive backdrop, the Bank recently announced an interim dividend of 7 cents per share for the year 2018.
Fitch Ratings also commented on the Bank's financing margin stating that it is the highest among its peer group as the Bank maintains a high share of low-cost current account saving accounts (46% of deposits), which has been sustained despite rising deposit rates.
Commenting on its capital ratio, Fitch Ratings expects the Bank's Fitch Core Capital (FCC) ratio to moderate to 15%-16% in the medium term, from 21% at end-Q1 2018, owing to balance sheet growth, but to still remain higher than that of most peers.
Sharing his views, the Bank’s Chief Executive Officer Mohamed Azmeer said “We are honoured to have our rating outlook revised to Positive from Stable, which demonstrates our sustained growth in financial performance during the last few years. With a healthier Core Capital ratio, we believe that the Bank is on a strong footing to further expand on our financial success in line with our 5 years Strategic Plan, which we expect to reflect positively on future ratings. I am indeed thankful, to our customers, who have been of immense strength throughout our journey, to the shareholders for continuing to have confidence in us, and of course to our staff who have been the cornerstone of our success”
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 IDB Group being the principal shareholder having a 29.97% stake of the Bank. The IDB Group is a ‘AAA’ rated multilateral development financial institution with an authorised capital base of over USD 150 Billion which has a membership of 57 countries. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the Bank.