Amana Bank in talks with foreign investors

Amana Bank (ABL) announced that its Board of Directors is in discussion with prospective foreign investors so as to enhance the required capital as per the requirements of the Central Bank of Sri Lanka (CBSL).  

Raising funds by way of equity would be subject to the approval of the CBSL, Department of Exchange Control, Securities and Exchange Commission of Sri Lanka, Colombo Stock Exchange (as applicable) and the shareholders. 

Its core capital is Rs. 5.2 billion and total capital base is Rs. 5 billion. The core capital adequacy ratio as a percentage of risk weighted assets is 10.7%, down from 12% as at end 2015. The minimum requirement however is 5%. The total capital adequacy ratio is 11.1%, down from 12.4% whilst the minimum requirement is 10%.

The major shareholders of Amana Bank include the Bank Islam Malaysian Berhad (14.44%), AB Bank Ltd. 14.44%, Akbar Brothers (9.62%), Islamic Development Bank (9.62%), Expolanka Holdings (7.22%) and Amana Holdings Ltd. (5.84%).

Amãna Bank improved its profit momentum in Q3 by accumulating a Profit Before Tax (PBT) of Rs. 62.9 million. As a result of this addition, the bank’s nine-month PBT reached Rs. 140.9 million to achieve a 16.2% year on year growth. The bank’s Profit After Tax (PAT), which surpassed the Rs. 100 million mark at the end of nine months to read Rs. 101.4 million, also established a similar growth trajectory. Having achieved a PAT of Rs. 56.1 million in the first half of the year, the bank went on to record a PAT of Rs. 45.3 million in Q3 alone.