Amana Bank records best ever quarterly performance; 9 month PBT up by 78%

Chairman Asgi Akbarally

Managing Director/CEO Mohamed Azmeer

Recording its best ever quarterly performance, Amana Bank PLC said it continued strong profitability trend in 2023 as it closed the nine months ending 30 September 2023 with a Profit Before Tax (PBT) of Rs. 1.68 billion reflecting a significant 78% YoY growth from Rs. 940 million posted a year back.

The Bank in Q3 alone accounted to an all-time high quarterly PBT of Rs. 874 million which is an impressive 128% growth against Rs. 383  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 Rs. 891.5 million, up by 48% from Rs. 600.5 million posted last year. The Bank’s Q3 PAT grew by a notable 98% to Rs. 471.9 million from Rs. 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 Rs. 12.97 billion from Rs. 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 Rs. 4.85 billion, reflecting a 56% YoY increase.

Net fee and commission income and net trading income posted were Rs. 701.4 million (36% YoY growth) and Rs. 1.17 billion (83% YoY growth) respectively, resulting in the Bank’s total operating income to grow by a significant 58% to reach Rs. 6.74 billion. Despite providing for a higher level of impairment, the Bank grew its net operating income by 51% to reach Rs. 5.29 billion from Rs. 3.49 billion reported 12 months back. The Bank posted a commendable YoY growth of 92% in operating profit before all taxes to reach Rs. 2.54 billion compared to Rs. 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 Rs. 15.8 billion or 14% during the nine months to close the quarter with a portfolio of Rs. 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 Rs. 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 Rs. 148.3 billion, while shareholders’ funds exceeded Rs. 15 billion. 

Chairman Asgi Akbarally said: “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.”

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.”