Pan Asia Bank records Rs. 847 m total profit after tax

Pan Asia Bank completed a triumphant year in the backdrop of many macroeconomic challenges, recording a total profit after Tax of Rs. 847 m, for 2012 exceeding its previous year’s performance. While generating a robust financial performance, the bank also managed to keep its aggressive branch expansion momentum intact by opening nine more branches in 2012.

Pan Asia Bank, reaping the benefits of investing in expanding its retail banking footprint, grew its customer deposits to Rs. 48 b, which is an impressive growth of 32%. This achievement is especially noteworthy as generally a significant increase customer deposits is considered to be an indicator of the higher level of confidence the customers place in a bank.  The bank also increased its customer loans portfolio by 24% to reach Rs. 45 b, during the same period which was a significant achievement in light of the credit ceiling that was prevalent during 2012.

However, the upward pressure on interest rates that lasted throughout the major part of the year resulted in the net interest margin coming down to 4.66%.

This exceptional performance has mainly come from three areas namely retail banking, corporate banking and treasury. During 2012 the bank’s NFI grew by an impressive 44% to reach Rs. 984 m and it was especially noteworthy that owing to the prudent management of treasury activities, the bank was able to record and impressive foreign exchange income of Rs. 351 m, despite adverse global exchange rate volatility that was prevalent during the period under review.

Another highlight for the bank in 2012 was the upgrading of the bank’s outlook from stable to positive by Fitch Rating Lanka, in recognition of the bank’s robust performance and the sound foundation on which it is operating.

While the bank’s business volumes grew at a rapid pace, great emphasis was placed on credit risk and controls due to which gross Non Performing Loan (NPL) ratio was kept well under control at 4.17%, marginally up from last year’s figure of 3.58% due to the adverse macroeconomic conditions that impacted most businesses.

In addition to recording superior financial performance, the bank remained fully committed to its rapid expansion plans and in 2012 established further nine branches with most of them being opened outside of Western Province, which brought the bank’s total branch network to 73.

The bank’s decision to expand its reach across the country and especially outside of the Western Province is expected to strongly position the bank to reap the benefits of the emerging economic revival in the post war era.

In addition, the bank takes pride in the fact that its rapid growth during the past three years has resulted in increasing the staff force from 511 in 2009 to 1,153 by end of 2012, providing solid long term careers to many young men and women of Sri Lanka.

In 2012, Pan Asia Bank launched several value added products namely, Daskam Children’s Savings Account and World MasterCard. Daskam’s unique feature was that the bank adds a 10% deposit on top of each and every customer deposit made to the account until the child reaches the age of 12.

Pan Asia Bank also became the first bank to launch the World MasterCard under the said brand name in Sri Lanka, a premier card with unique benefits available both locally and internationally.

The Bank’s all round performance is well reflected in its return on equity of 22.8% which is a testament to the right strategies employed and the exemplary teamwork that exists at all levels in the bank.

The bank also has a strong culture of superior customer service and sales expertise that have laid a strong foundation on which further growth is expected.