Amana Bank shareholders welcome share consolidation in backdrop of robust performance

• Net Asset Value per Share to cross Rs. 40 post consolidation 

Amana Bank recently announced the approval of its share consolidation initiative as per the communique to the CSE, which has been eagerly welcomed by the investor community as it is seen as a strategic step to enhance shareholder value, reflecting the Bank’s strong performance track record and future growth plans in line with the recent capital infusion of Rs. 6 billion.

The Bank continued its resilience and growth trajectory in the first quarter of 2024 on the backdrop of its best-ever financial performance in 2023, where during Q1 Profit After Tax grew YoY by 91%. Advances grew by 8%, reflecting growing demand for the Bank’s unique people friendly and development focused banking approach. The Bank maintained an industry low Stage 3 Impaired Financing Ratio of 1.6%, highlighting effective risk management. Additionally, Return on Equity (ROE) improved from 6.2% to 7.8%, demonstrating enhanced shareholder returns. 

Amana Bank’s commitment to shareholder value is further evidenced by its consistent dividend track record over the last six years. The Bank has shown incremental growth in both dividend yield and the quantum of dividends paid, reinforcing investor confidence. Moreover, the successful Rights Issue, which raised Rs. 6 billion during a challenging period, underscores the strong support from existing and new shareholders both local and overseas. This capital infusion will support future growth initiatives and strengthen the Bank’s financial foundation.

As a result of the 10 to 1 consolidation, Amana Bank Ordinary Voting Shares will now comprise of 551,125,746 shares compared to the pre-consolidation figure of 5,511,257,461 shares. Post consolidation the Bank’s Net Asset Value per Share will cross the Rs. 40 mark, based on the Q1 2024 financial statements. 

Amana Bank Managing Director/CEO Mohamed Azmeer said: “The share consolidation is a strategic initiative to enhance shareholder value. The response from our investors underscore their confidence in our growth strategy. We remain committed to driving sustainable growth and delivering long-term value to our shareholders in line with our strategic plan.”