Friday Nov 15, 2024
Friday Nov 15, 2024
Friday, 28 October 2011 03:25 - - {{hitsCtrl.values.hits}}
Pan Asia Bank completed a successful first nine months in 2011 reporting a phenomenal 120% increase in net profit after tax, reaching Rs. 615 million compared to the corresponding period for 2010.
This impressive performance has further strengthened Pan Asia Bank’s steady growth momentum in 2011 which includes recording above 100% growth in profit after tax for three consecutive quarters.
The bank’s strategy in 2011 to grow the revenue by focusing on core banking proved to be immensely successful with net interest income for the period increasing by 40% to 1,586 m from Rs. 1,130 million in 2010.
Increase in NII was mainly due to the increase in customer loans which grew by 64% to Rs. 29,978 million.
The major contributors for the higher asset growth came from retail banking products such as gold loans/pawning, leasing and overdrafts. The bank also recorded significant growth from their traditional strength areas of SME and mid corporate segments during this period.
The bank’s aggressive growth in its asset base was matched by an equally impressive growth in its liability base which saw the deposits grew by an impressive 74% to Rs. 33 billion. The balance sheet as at 30 September 2011 stood at Rs. 43.5 billion representing a nearly 56% growth compared to the figure a year ago.
Other main contribution towards increased profitability came from the commission income which grew by 60% compared to previous year same period mainly due to the increased volume of trade, guarantees and other international business handled by the bank.
Pan Asia Bank takes pride in its customer centric focus and offers a highly personalised service, competitive deposit and loan rates and an array of novel banking products including the Champion Saver account with an attractive interest of 8% for a savings account, exclusive ‘Prime’ banking services package for the mass affluent segment, gold loans that offer the highest advance amount in the market and leasing at attractive rates.
While recording strong growth numbers in all key financial areas, Pan Asia Bank also maintained a strong risk management discipline across the organisation which resulted in the NPA ratio improving from 5.36% as at year end 2010 to 4.07% as at 30 September 2011 and notably the net NPA ratio improving from 2.74% to 2.32% during the same period which is well within industry average and reflects sound asset quality.
Pan Asia Bank also embarked on an aggressive expansion drive under which 15 new branches were added as of 30 September 2011 taking the branch network to a total of 56 branches.
This rapid expansion is set to continue for the remainder of the year with more branches scheduled to be added by end of 2011.
Plans are also under way to add a significant number of branches in 2012 across the country affording potential customers across the country easier access to the bank. CEO Claude Peiris commented: “This quarter’s achievements highlight our ability to generate outstanding results in all key areas in a consistent manner.
With the right direction, focus, processes and most importantly the team in places I have no doubt that Pan Asia will continue in its winning ways well in to the future.”
