Amãna Bank bottom-line grows by 171.8% at Q3 end

• Reaches profit of Rs. 121.2 m against last year’s loss of Rs. 168.7 m

Amãna Bank CEO Mohamed Azmeer

Amãna Bank, Sri Lanka’s premier non-interest based banking institution, continued its upward profitability momentum by recording a Q3 profit of Rs. 50.6 million following its Q1 and Q2 profit of Rs. 23.1 million and Rs. 47.5 million respectively. The Bank’s Operating Profit before Value Added Tax for the nine months ended 30 September 2015 increased to Rs. 225.2 million.

Bolstered by strong growth in revenue and effective cost management the profit of Rs. 121.2 million recorded for the first nine months of 2015, demonstrates a significant improvement of Rs. 290.0 million or 171.8% when compared with the loss of Rs. 168.7 million posted in the corresponding period of 2014.

The bank’s top line recorded impressive growth with financing income reaching Rs. 2.0 billion while net operating income grew by 31.8% to stand at Rs. 1.4 billion. 

Having started the year with Rs. 34.9 billion in total assets, the bank’s asset base grew up to Rs. 43.4 billion during the nine months recording an impressive growth of 24.5%. Customer advances and customer deposits showcased noteworthy improvements closing at Rs. 30.2 billion and Rs. 34.8 billion respectively. The bank continued to maintain a low gross non performing advances ratio of 1.21%, which stands well below the industry average reflecting the bank’s strong focus on portfolio quality through effective credit risk management policies and procedures. Net non-performing advances at the close of Q3 stood at 0.52%.

Commenting on the bank’s performance to date, Chief Executive Officer Mohamed Azmeer stated: “I am happy to note that the bank has been successful in achieving four successive quarters of profits, starting from Q4 in 2014. This promising upward trend resulting in higher than anticipated profits is owing to the revenue growth achieved by the bank demonstrating the unique value proposition of its model and gaining widespread acceptance. It is also supported by the bank’s continuous focus in cost management and service excellence. The avenues of growth reflect our focus of being a retail and SME bank, in line with the bank’s five-year strategic plan.”

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 capitalising the growing market potential for its unique banking model across the country.