Pan Asia Bank PAT soars by 50% to Rs. 324 Mn
Pan Asia Banking Corporation PLC reflected a positive performance amidst a multitude of adversities emerging from challenging macro-economic and for the quarter ended March 31, 2023, reported a Pre-Tax Profit of Rs. 540 million, which reflects a 72% increase compared to 1Q2022.
Impairment charges for 1Q2023 came down by 37% compared to the comparative period due to strong collection and recovery efforts.
The interest income for 1Q, 2023 rose by 88% due to increase in market lending rates and re-pricing effect of facilities in response to the market conditions.
Further, the significant volume growth in Pawning and Short-Term Loans also led to the increase in loan related interest income. Meanwhile, the interest expense for 1Q2023 rose significantly by 197% mainly due to a steep increase in deposit rates and re-pricing effect of deposits in response to the market conditions.
Income Tax Expense has increased by 120% due to increase in statutory income tax rate to 30% from 24%, and operating profits also increased.
Meanwhile, the Bank’s Post-Tax Profit increased by 50% to Rs. 324 Mn in 1Q2023 from Rs. 216 Mn in 1Q2022 due to the overall excellence.
The Bank reported a Net Interest Margin of 3.87% during 1Q2023. Meanwhile, the Bank reported a Return on Equity (ROE) of 6.33% and a Pre-Tax Return on Assets (ROA) of 1.03%.
Furthermore, the Bank’s Earnings Per Share (EPS) for 1Q2023 increased to Rs. 0.73 from Rs. 0.49 mainly due to increased trading gains from government securities, reduced exchange losses and impairment charges.
The Bank maintains all its Capital and Liquidity Ratios well above the regulatory minimum standards. Commenting on the Bank’s performance, Naleen Edirisinghe, Director/ CEO of Pan Asia Bank said, “Our resounding performance in the 1Q2023 demonstrates that we are well on track to meeting our ambitious targets for the year.
A growth of PAT over 50% in 1Q 2023 affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies.”
“Despite difficult market conditions, Pan Asia Bank leveraged on its spirit of innovation and ‘can do’ spirit as one team to deliver this encouraging performance, which sets the stage for the rest of the year.”