Amãna Bank shows resilience in Q3 profit momentum

Amãna Bank has showcased resilience by recording a nine-month Profit after-tax of Rs. 431 million in 2019, in line with Rs. 430 million, which was achieved during a relatively favourable economic environment in the corresponding period of 2018. 

CEO Amana Bank Mohamed Azmeer

Profit before tax for the nine months ending 30 September 2019 stood at Rs. 598.6 million, compared to the Rs. 597.1 million achieved in the same period of 2018. Consequent to the sustained profitability achieved during the last few years and having paid its inaugural dividend last year, the bank declared its second dividend in September 2019, resulting in a total payout of over Rs. 200 million.

Due to growing acceptance of the bank’s business model, Financing Income for the nine months grew by 16% YoY to Rs. 5.74 billion from Rs. 4.95 billion posted in 2018 while Net Financing Income recorded a marginal increase to read Rs. 2.43 billion. The bank achieved a Net Trading Income of Rs. 566.9 million, resulting in the bank’s Total Operating Income growing by 11% YoY to reach Rs. 3.23 billion from Rs. 2.90 billion. Net Operating Income after accounting for impairment charges grew by 12% YoY to reach Rs. 2.94 billion from Rs. 2.62 billion. Operating Profit Before Value Added Tax, Nation Building Tax and the Debt Repayment Levy stood at Rs. 987.3 million, reflecting a YoY growth of 5%. Total taxes amounted to Rs. 556.3 million or effectively 56% of such Operating Profit recorded for the period. 

Despite current market conditions and overall tightness of liquidity, Customer Deposits continued to grow during the nine months ending 30 September 2019 to achieve a commendable 13% growth to close at Rs. 69.4 billion while the Advances portfolio grew by 9% during the same period to close at Rs. 57.4 billion. As a result, the bank’s Total Assets grew by 8% to close the quarter at Rs. 83.6 billion.

With the overall banking industry being challenged with high non-performing advances, Amãna Bank’s Gross Non-Performing Advances and Net Non-Performing Advances continued to remain within industry norms, closing at 4.63% and 2.34% respectively. The regulatory capital ratios stood at a healthy level as the bank closed the quarter with Total Capital Ratio being 17.1%. The bank’s Return on Equity improved to 4.7% from the 4.6% recorded in December 2018. Commenting on the bank’s nine-month performance, Chief Executive Officer Mohamed Azmeer said: “I am pleased to observe the bank’s resilient performance during the first nine months of 2019, which has resulted in sustaining our trend in profits. Such a performance during challenging times is truly encouraging and I am confident that the bank will reap further rewards during the latter part of the year to end on a strong note. I am once again grateful to our customers, shareholders and employees for their overwhelming support and loyalty.”

Amãna Bank Plc is a standalone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with the Jeddah-based IDB Group being the principal shareholder having a 29.97% stake in the bank. The IDB Group is a ‘AAA’ rated multilateral development financial institution with an authorised capital base of over $ 150 billion, which has a membership of 57 countries. 

Fitch Ratings in June 2019, affirmed Amãna Bank’s National Long-Term Rating of BB(lka) with a positive outlook. Amãna Bank does not have any subsidiaries, associates or affiliated institutions representing the bank.