Amana Bank posts best ever performance
Amana Bank concluded a historic 2023 with its strongest-ever financial performance to date, with Bank’s audited Profit Before Tax (PBT) nearly doubling to LKR 2.3 billion, reflecting a remarkable 92% YoY increase from LKR 1.2 billion in 2022.
Profit AfterTax (PAT) for 2023 broke through the LKR 1 billion threshold to reach LKR 1.4billion, showcasing a YoY growth of 76%from LKR 0.8 billion in 2022.
Supported by strong growth in core business, the Bank’s financing income increased to LKR 17.2 billion in 2023, up by 42% from LKR 12.1 billion reported in the previous year.
Maintaining a healthy financing margin of 4.3%, the Bank went on to record a Net Financing Income of LKR 6.5 billion, a 36% YoY increase from LKR 4.8 billion registered in 2022.
Fee-based income also reflected substantial improvement of 24% to LKR 931 million, driven mainly by trade volumes generated from our valued business banking customers as well as increased digital transactions and other value added services. Considering market conditions, the level of the Bank’s advance portfolio, and the need to prudently maintain higher credit buffers, Impairment charges for the year rose to LKR 2.1 billion from LKR 1.6 billion in 2022, an increase of 29%.
Despite the incremental impairment charges, Net Operating Income recorded a noteworthy YoY growth of 50% to reach LKR 7.1 billion from the previous year’s amount of LKR 4.7 billion.
Sustaining an improved and healthy 42% cost to income ratio despite prevailing inflationary pressure, the Bank closed the year with an Operating Profit before VAT on Financial Services and Social Security Levy of LKR 3.2 billion, denoting a 85% increase from a year back.
The Bank’s aggregate tax contribution of LKR 1.8 billion accounted for a significant 57% of the Bank’s Operating Profit before all taxes.
Chairman Asgi Akbarally said “These achievements are a testament to the growing acceptance of our people-friendly and development focused banking approach as well as the enduring trust and confidence placed on us by our stakeholders.”
Managing Director/CEO Mohamed Azmeer said “2023 was a historic year for Amana Bank, characterized by exceptional performance and remarkable achievements while strengthening the Bank’s foundation for our ambitious growth plans with fresh capital infusion that underscored the Bank’s resilience and stakeholder confidence amidst a challenging economic environment.”
“This performance was a result of the Bank’s continued support towards SME, Corporate and Retail sectors facilitating their needs while adding value to the economy at this crucial juncture where the country’s economic revival is taking shape.”
The Bank achieved noteworthy 8% growth in its advances to close at LKR 89.7 billion from LKR 83.2 billion in 2022. This growth was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratios of 1.5%.
The Bank’s deposit portfolio grew significantly by 18% to LKR 132.9 billion while maintaining an industry high CASA ratio of 40%.
Crossing the LKR 150 billion landmark, the Bank’s Total Assets grew by LKR 17.8 billion or 13% YoY from LKR 141.7 billion in 2022 to close at a solid LKR 159.5 billion as at end-December 2023.
Given the strong financial performance for 2023, Amana Bank’s ROE grew to 7.7% from 5.6% recorded in 2022, despite the capital infusion of over LKR 6 Bn in the latter part of the year.
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