Pan Asia Bank 1Q net profit up 190% to Rs. 196 m

Pan Asia Bank announced that it had a very successful first quarter in 2011, with a Net Profit after Tax of Rs. 196 million up by 190 % over the corresponding period of last year.

The bank’s Net Interest Income for the period rose by 49% to Rs. 507 million from Rs. 340 million in 2010 which came mainly from the core banking income.  The commission income grew by an impressive 135% compared to previous year same period mainly due to the increased volume of trade, guarantees and other international business handled by the bank.

The customer loans grew by 114% to Rs. 24.2 billion. The major contributors for the higher asset growth come from pawning, leasing, Ranaviru Harasara loans and margin trading. During the same period the bank’s deposits grew by Rs. 58% to Rs. 26.2 billion.

Key indicators such as the NPA ratio declined from 11.96% at first quarter 2010 to 4.84% at first quarter 2011 and notably the Net NPA ratio is down to 2.63% which is well within industry average and reflects sound asset quality.

The bank expanded its network of branches to reach a total of 44 branches at the end of 31 March 2011 including three new branches opened in 2011 so far. The bank will continue its vigorous expansion drive in year 2011 with a view of achieving 25 new branches in 2011.

Pan Asia Bank goes for share split

The Board of Directors of Pan Asia Banking Corporation yesterday resolved to recommend to increase the ordinary shares of the company via a sub division of shares without any change to the stated capital.

The sub division will be one share for every existing share. PABC’s existing ordinary shares amount to 147.5 million and post-sub division it will increase to 295 million. The move is subject to shareholder approval.

The sub division was announced after the market was closed but on improved first quarter results PABC shares yesterday gained by Rs. 6.30 to Rs. 59.10 whilst it reached an intra-day peak of Rs. 60. Over 3.3 million shares traded.