Amana Bank completed a successful first quarter recording a notable 73% YoY increase in Profit Before Tax to reach Rs 734.5 million compared to Rs 423.5 million booked a year back while Profit After Tax surged by 91% YoY to post Rs 422.2 million as against Rs 220.7 million recorded in Q1 2023.
The Bank’s top line witnessed a marginal decline to close at Rs 4.1 billion, owing to the drop in market rates in line with the Central Bank’s economic revival policies. However, by maintaining a healthy Financing Margin of 4.5%, Net Financing Income improved to close at Rs 1.8 billion.
The Bank’s Fee and Commission Income and Trading Income grew YoY by 15% and 11% to close at Rs 285.9 million and Rs 275.1 million respectively resulting in the Bank’s Total Operating Income reaching Rs 2.4 billion.
The Bank continued to maintain a healthy cost-to-income ratio of 48%, resulting in a 51% YoY growth in Operating Profit before VAT on Financial Services to post Rs 993.6 million. The Bank’s aggregate tax contribution of Rs 571.4 million accounted for a significant 58% of the Bank’s Operating Profit before all taxes.
Owing to growing acceptance of its development-focused banking model, the Bank’s Advances grew by a commendable 8% to close at Rs 97 billion. Local currency deposits grew by over LKR 1 billion during the quarter but the overall portfolio remained at Rs 132 billion after considering the effects of Rupee appreciation against the US Dollar for foreign currency deposits.
Given the strong financial performance in the quarter, Amana Bank’s ROE and ROA grew to 7.8% and 1.8% respectively compared to 6.2% and 1.2% in the corresponding period of 2023.
Chairman Asgi Akbarally said, “This promising start catalyzes continued future growth and prosperity. I am thankful for the management and our staff for their dedication and unwavering commitment, which has been instrumental in ensuring Amana Bank’s continued success.” Managing Director/CEO Mohamed Azmeer stated, “Our commitment to providing development and people-friendly banking solutions which is also in sync with the revival efforts of the Central Bank, coupled with the Bank’s prudent risk management framework, has driven our advanced growth trajectory, which I am confident will continue through the rest of the year.”
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