Pan Asia Bank after tax profit up 128% to record Rs. 824 m in 2011

Capping a record breaking year of performance, Pan Asia Bank recorded another phenomenal quarter which saw its 2011 Profit After tax (PAT) growing by 128% to Rs 824 million compared to 2010.

Historically, this is the highest growth recorded by the bank in a financial year during its 17 years of operations and even after taking into account benefits received from reduced taxation, this growth significantly exceeds that of previous year.

Inspirational team work and a focused strategy resulted in the bank’s total deposit base witnessing growth of over 65% in absolute numbers to top Rs. 35.5 billion during 2011. Meanwhile, profit before tax grew by 70% with its main contribution coming from core banking areas.

Total interest income for the year increased by 47% and Non Fund based income grew by 55%. This performance was achieved despite total expenses going up by 37% due to an increase in the branch network. Furthermore, advances picked up admirably during the year with Net loan book growing by over 64% while total assets of the bank have grown from Rs.31.18 billion to Rs. 46.95 billion during 2011.

This exceptional performance came mainly from three areas namely Retail Banking, Corporate Banking and Treasury. Although bank’s business volumes grew at a rapid pace, great emphasis was placed on credit risk and controls due to which Non Performing Loan (NPL) ratios were maintained well under control. In 2011 the gross NPL ratio improved from 5.36% to 3.58%.

In addition to recording superior financial performance, Pan Asia Bank also earned the reputation of being one of the fastest growing banks in 2011 by adding 23 new branches to reach a total of 64 branches. With this mammoth growth, the bank has made strong inroads into the northern and eastern regions of the country, which are experiencing an economic revival in the post-war climate. This rapid expansion is expected create a strong platform for the bank to reach SME sector which is perceived by the bank to possess immense growth potential.

Pan Asia Bank launched some of the most talked about new financial products to be introduced in 2011 expanding the horizons commercial banking landscape in Sri Lanka. Standing out among these new products was the ‘Champion Saver’ Savings Account, sales of which reflected outstanding results.

 The bank’s other high performing products were ‘Gold Loan’, a by-product of pawning that offers attractive interest rates for customers; and ‘Ranaviru Harasara’, which empowers the members of county’s armed forces to avail of easy loans.  Commenting on the exceptional performance of the bank, its CEO Claude Peiris stated that Pan Asia Bank has grown in all aspects, adding that growth in profitability was supported with improved financial ratios and the pivot on which this exceptional growth has been achieved is his team, which is clearly bank’s biggest asset – with their efforts shining through in this year’s financial results.  He also stressed that the bank’s strong culture of superior customer service and sales expertise has built a strong foundation on which further growth can be planned.

Peiris also stated that the bank’s future plans encompass treading on the same strategic path we did through 2011. He further commented that armed with a  forward-looking vision and an aggressive growth strategy, Pan Asia bank expects to further build on the gains of 2011 in the year ahead.