Pan Asia Bank achieves Rs. 3 bn PAT in 2021 – up by 50%
Pan Asia Banking Corporation PLC reported a remarkable performance for the year 2021 to report a Pre-Tax Profit of Rs. 4,034 million and a Post-Tax Profit of Rs.3,075 million with growth rates of 42% and 50% respectively, while demonstrating the resilience amidst challenging macroeconomic conditions.
The Bank’s performance was characterised by strength and resilience, despite the heightened uncertainty due to the impact of the COVID-19 pandemic. Against the backdrop of the COVID-19 impact on the Sri Lankan economy, the Bank’s Operating Profit before VAT on Financial Services reached Rs. 4,911million with an increase of 39%, reflecting the excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key profitability matrices which now rank among industry bests. This feat was achieved even after setting aside sizable provision buffers for the probable deterioration in credit quality due to COVID-19 pandemic. The Bank increased its provision buffers for loan losses during the year, sensibly taking into consideration increased risks and uncertainties due to the COVID-19 pandemic through management overlays.
Commenting on the financial performance, the Bank’s MD/CEO, Nimal Tillekeratne said; “We are extremely proud and pleased to deliver such an excellent performance under the challenging conditions created by the COVID-19 pandemic. This performance has been hard-won on account of a proactive approach to business while leveraging on emerging opportunities in the market in a prudent manner. Despite the losses due to extension of debt moratoriums and prudential risk- based impairment provisioning, the Bank has successfully recorded profitability while consolidating customer and investor confidence.”
The Bank maintains all its Capital and Liquidity Ratios well above the regulatory minimum standards. The Bank’s Tier 1 Capital Ratio and Total Capital Ratio as at December 31, 2021 stood at 13.82% and 15.97% respectively. The Bank’s Statutory Liquid Assets Ratio (SLAR) as at December 31, 2021 stood at 24.18% and 58.42% for Domestic Banking Unit and Off-Shore Banking Unit respectively. Meanwhile, the Bank’s Liquidity Coverage Ratio (LCR) under BASEL III stood well above the statutory minimums. The Bank maintained LCR of 146.83% and 135.47% for All Currencies and Rs respectively.