Amãna Bank Net Operating Income for 1H crosses Rs. 1 billion

Amãna Bank recorded another successful half year of banking operations by achieving a Profit Before Tax of Rs. 78 million for the six months ending 30 June, despite challenging and competitive market conditions. 

Financing Income for the first six months improved remarkably by 35.7% to Rs. 1.8 billion indicating the bank’s strong top line performance in its core banking activities, predominantly focusing on SMEs. Of this, Rs. 950.9 million was recorded in Q2 2016 showcasing a significant growth of 40.7% in comparison to the corresponding achievement in 2015. Net Financing Income from core banking activities in 1H, grew year-on-year by 23.5% to reach Rs. 866.3 million. 

The bank also recorded Rs. 98.3 million in Net Fee and Commission Income during the first half reflecting a year-on-year growth of 35.2%. Net Operating Income for the first six months surpassed the 1 billion mark to close the half at Rs. 1.1 billion, growing by 19.2% from 1H 2015. 

The bank’s Total Assets grew during 1H to read at Rs. 52.4 billion while its Deposit and Advance portfolios continued its upward trend ending at Rs. 45.4 billion and Rs. 36.7 billion respectively.  Despite the growth in advances and gradual seasoning of the asset book, the bank continued to maintain an industry low Gross Non-Performing Advances Ratio of 0.95%. Commenting on the bank’s financial achievements in 1H, Chief Executive Officer Mohamed Azmeer said, “I am pleased to note the performance achieved by the bank in the first six months of 2016. The results achieved reflect the growing confidence the customers have placed in our people friendly banking model for which I am sincerely thankful. I am optimistic that this performance trend will continue for the second half of the year as we make steady progress to achieve the goals outlined in our five-year strategic plan, with the core focus being SMEs.” 

Amãna Bank PLC is the first Licensed Commercial Bank in Sri Lanka to operate in complete harmony with the non-interest based Islamic banking model. Fitch Ratings, in October 2015, affirmed the Bank’s National Long Term Rating of BB(lka) with a Stable Outlook. The bank was recognised 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 held in Washington DC, USA.  

The bank was also bestowed the coveted title ‘Islamic Finance Entity of the Year 2016’ at the inaugural Islamic Finance Forum of South Asia Awards Ceremony held in July. Powered by the stability and support of its strategic shareholders including, Bank Islam Malaysia Berhad, AB Bank in Bangladesh and 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.