Amãna Bank doubles profits from Q1 to Q2

• Records profit of Rs. 70.6 m for 1H 2015 from loss of Rs. 134.9 m in previous year

Sri Lanka’s pioneer non-interest based licensed commercial bank, Amãna Bank, achieved an impressive acceleration in profitability during Q2 2015 by recording a profit of Rs. 47.5 million compared to Q1 profit of Rs. 23.0 million.  

As a result, the bank’s profit for the first half of 2015 propelled to Rs. 70.6 million, compared to the loss after tax of Rs. 134.9 million recorded in the corresponding period of 2014.

The bank’s top line also showcased noteworthy performance during the six months ended 30 June, by achieving a financing income of Rs. 1,337.2 million and a net operating income of Rs. 950.6 million. Aided by operating efficiency and cost management initiatives, the bank was successful in achieving an operating profit of Rs. 142.4 million compared to the operating loss of Rs. 112.2 million recorded in the corresponding period of 2014.

The growing advance and deposit portfolios, which stood at Rs. 28.1 billion and Rs. 33.0 billion respectively, ensured that the bank recorded a commendable growth in terms of top line performance and total assets.

The total asset base, which grew by 15.2% during the first half of the year, surpassed the Rs. 40 billion mark. The bank continued to maintain a quality advance portfolio through effective credit risk management policies and procedures which resulted in the bank recording a low gross non performing advances ratio of 1.38%, well below the industry average.

Commenting on the bank’s first half performance, Chief Executive Officer Mohamed Azmeer said: “I am happy to note the performance and growth of the Bank achieved during this period. We owe this success to our valued customers, who have placed their confidence and trust in our bank and our unique operating model. Over the last six months the employees of the bank have worked tirelessly to put in motion our five-year strategic plan, which is now reaping the desired results. Staying on course with the strategic plan, we are expecting these numbers to further improve.”

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 recently assigned the Bank a National Long Term Rating of BB(lka) with a Stable Outlook.

Powered by the stability and the 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.