Amãna Bank delivers strong 9-month performance; profits up 26% to cross Rs. 1 b

• Advances surpass 
• Rs. 100 b milestone, with a growth of 16%

Chairman Asgi Akbarally

Managing Director/CEO Mohamed Azmeer

Amãna Bank said yesterday it continued strong financial performance as it closed the nine months ending 30 September 2024 with a Profit Before Tax of Rs. 1.98 billion, reflecting a 18% YoY increase compared to Rs. 1.68 billion recorded for the corresponding period of 2023. Showcasing a 26% YoY growth, Profit After Tax grew from Rs. 891 million to cross the Rs. 1 billion mark and close at Rs. 1.12 billion.

With financing rates declining across the banking industry in a bid to spur economic growth, the bank’s financing income closed at Rs. 11.70 billion. However, by maintaining a strong financing margin of 4.1%, the bank posted a Net Financing Income growth of 6% YoY to reach Rs. 5.13 billion compared with Rs. 4.85 billion posted in the corresponding period in 2023. 

The Bank’s Total Operating income stood at Rs. 6.50 billion, marginally lower by 4% from last year. With a robust recovery mechanism in place and renewed customer engagement, the bank was able to reduce its impairment charges by 73%, due to which Net Operating Income improved by 16% YoY to close at Rs. 6.11 billion. Despite increase in Operating Expenses, the bank continued to maintain a healthy cost to income ratio of 53%, resulting in a 6% YoY growth in Operating Profit before VAT on Financial Services to post Rs. 2.69 billion. The bank’s aggregate tax contribution of approx. Rs. 1.57 billion accounted for a significant 58% of the bank’s Operating Profit before all taxes. The Total Comprehensive Income for the period was Rs. 1.10 billion, reflecting a healthy YoY growth of 24%.

Following the increased acceptance for non-interest based banking, the bank’s advances and deposits portfolios grew significantly during the nine months ending 30 September 2024. Promoting its development focused banking approach, customer advances grew by 16% or Rs. 15 billion to surpass the Rs. 100 billion milestone to post Rs. 104.42 billion whilst maintain an industry low Stage 3 Impairment ratio of 1.4%. Posting a healthy nine-month growth of 10%, customer deposits closed the 3rd quarter at Rs. 145.72 billion, with a strong CASA ratio of 42.3% setting an industry benchmark. The bank’s Total Assets stood at Rs. 172.52 billion whereas Net Asset Value per Share improved to Rs. 41.40. Given the robust performance during the nine months, the bank’s ROE and ROA stood at 6.7% and 1.6% respectively. As at 30 September 2024, Amãna Bank’s Common Equity Tier 1 and Total Capital ratios stood at 15.5% and 18.1% respectively, well above the regulatory minimum requirement of 7% and 12.5%.

During the third quarter Fitch Ratings Sri Lanka upgraded Amãna Bank’s national long-term rating from BB+(lka) to an investment grade rating of BBB-(lka), with a stable outlook, opening up multiple opportunities for growth and expansion. The bank also recently declared its seventh consecutive dividend, being the highest ever dividend payout so far totalling Rs. 661 million which marks a doubling of the dividend paid in 2023.

Amãna Bank Chairman Asgi Akbarally said: “In a quarter in which the entire country’s focus was primarily on the Presidential election, Amãna Bank, despite a challenging environment, once again showcased its resilience to post a strong financial performance on key matrices. On behalf of the board, I would like to extend our appreciation to all our valued stakeholders, who have continued to support the bank’s journey of growth and prosperity.”

Amãna Bank Managing Director/CEO Mohamed Azmeer said: “We are pleased with the bank’s strong performance during the first nine months of the year, demonstrating its resilience and ability to deliver sustainable growth. Amãna Bank’s development focussed and people friendly banking approach along with prudent risk management practices and efficient operations have enabled us to navigate challenging market conditions and once again deliver value to its stakeholders. I am thankful to the Chairman and the Board of Directors, management, staff, shareholders and customers for their continued support, trust and confidence. With optimism, we look forward to end 2024 with a stronger performance as we continue our mission of enabling growth and enriching lives.”