Pan Asia Banking Corporation PLC reported a steady performance reporting a Pre-tax Profit of Rs. 1,996 million for the six months ended June 30, 2024, which is a 32% increase compared to the corresponding period last year.
The Bank’s net fee and commission income has increased by 24% during the first half of 2024, mainly due to the increase in fee income generated from loans and advances, due to increased demand for credit which resulted from the prevailing low interest rate regime and other conducive macro-economic factors in the country. The net gains from trading decreased by 57% during the reporting period due to the drop in capital gains from Sri Lanka Government Rupee Securities (T-Bills/Bonds) classified under FVPL.
The other operating income has increased significantly by 270% due to the prudently managed FX positions with the appreciation of LKR against USD from Rs. 324 to Rs. 306 during the first half of 2024. The Bank reported an improved Cost-to-Income Ratio of 45.77% during the first half of 2024 from 48.31% for the year 2023.
The Bank reported a profit after tax (PAT) of Rs. 1,025 million in the first half of 2024 which is an 11% increase compared to the corresponding period last year. The Bank reported an Earnings Per Share (EPS) of Rs. 2.32 for the first half of 2024. Pan Asia Bank Director and CEO Naleen Edirisinghe, said, “Our resounding performance for the first half of 2024 demonstrates that we are well on track to meet our ambitious targets post the economic crisis.”
“A growth in PBT of 32% for the first half of 2024 affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies.”
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 of June 30 2024 stood at 16.09% and 18.04% respectively. Further, the Bank’s Leverage Ratio stood at 7.32% as of June 30, 2024.
Meanwhile, the Bank managed to end the first half of 2024 with healthy credit quality matrices due to improved credit underwriting standards and concerted collection and recovery efforts.
The Bank’s Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) under the BASEL III Accord stood well above the statutory minimums. The Bank maintained an LCR of 316.22% and 262.02% in all currencies and rupees respectively and NSFR of 150.38% as of June 30, 2024.
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