Pan Asia posts increase in core banking with advances up 79%, deposits up 32%

Tuesday, 8 March 2011 00:06 - - {{hitsCtrl.values.hits}}

Pan Asia Bank announced an impressive Net Profit after Tax of Rs. 361.79 million and a Profit before Tax of Rs. 693.92 million.

The bank’s Net Interest Income rose by 26.8% to Rs. 1,625.39 million from Rs. 1,281.65 million in 2009, which came mainly from the core banking income.

Forex income too showed a considerable growth of 47.8% reflecting the increased volume of trade and other international business handled by the bank.

Total Assets grew by 44.6% to Rs. 31,180.96 million, with Deposits growing by a satisfactory 31.5%.

The high demand for credit which prevailed during the year resulted in an increase in customer Advances by over 78.7% during the year.

With Capital Adequacy Ratio at 15.3% and the Liquidity Ratio at 23.2% as at end of the year the bank is in a strong position to grow customer Advances without any pressure, which augers well for 2011 when demand for credit is expected to increase significantly.

Further, Non Performing Advances ratio, another key indicator declined from 13.1% to 5.4% as at year end 2010 and notably the Net Non Performing Advances ratio was down to 2.7% which is well within the industry average and reflects sound asset quality.

The bank expanded its network of branches with six new branches to reach a total of 41 branches at the end of 2010 and will continue on an aggressive expansion drive in this year to open branches in almost all the key cities in the country.

Pan Asia Bank Chief Executive Officer Claude Peiris said: “This year’s achievement is impressive by any standards and we are proud of the team at Pan Asia.

With a highly focused Management Team committed to branch expansion and growing the business through its different market segments, I am confident that Pan Asia will grow even further in 2011.”