Amana Bank posts double digit PBT growth for Q1
Amana Bank PLC achieved a double digit growth (10%) in Profit Before Tax for Q1 2023, to close at Rs 423.5 million in comparison to Rs 385.8 million posted a year back.
Owing to the higher tax regime, which saw tax expenses increase by 50%, the Bank’s Profit After Tax reduced by 12% to Rs 220.7 million against Rs 250.7 million recorded in 2022.
The Bank closed Q1 with a Total Comprehensive Income of Rs 215.3 million, up by 21% from Rs 177.8 million posted in Q1 2022.
The Bank’s top line financing income doubled to reach Rs 4.41 billion against Rs 2.21 billion achieved a year back. The Bank’s financing margin improved to 5.0% from 3.6% in Q1 2022. As a result the Bank’s Net Financing Income grew commendably by 57% to reach Rs 1.77 billion.
The Bank continued to grow its Net Fee and Commission Income, which witnessed a significant growth of 114% to Rs 248.0 million from Rs 115.9 million recorded last year, while Net Trading Income closed at Rs 247.5 million compared to Rs 235.9 million. As a result, the Bank’s Total Operating Income grew by 56% YoY to reach Rs 2.28 billion. The Bank’s Net Operating Income grew by 27% to reach Rs 1.55 billion from Rs 1.22 billion posted in Q1 2022.
The Bank was able to limit the increase in its Operating Expenses to 32%. As a result, the Bank posted a noteworthy growth of 21% in Operating Profit Before VAT on Financial Services and Social Security Contribution Levy to reach Rs 656.0 million compared to Rs 541.4 million recorded a year back.
The Bank’s Q1 aggregate tax contribution of LKR 435.3 million accounted for 66% of the Bank’s Operating Profit before all taxes. Chairman Asgi Akbarally said “The Bank has been successful to withstand many external challenges to once again record a strong quarterly performance, setting a good platform to carry on the growth momentum for the rest of 2023 as well.”
Amana Bank’s Managing Director/CEO Mohamed Azmeer said “Our Q1 performance reflects the Bank’s stability and resilience amidst a challenging but gradually improving economic environment. I remain optimistic on the future outlook and prospects.”
The Bank grew its Customer Deposits by 3% to close Q1 2023 with a portfolio of LKR 115.5 billion, maintaining a healthy CASA ratio of 41%. The Bank’s Total Assets as at the end of March 31, 2023 stood at LKR 143.0 billion while the Bank’s Total Capital Ratio stood at 15.6%.