Amãna Bank continued its impressive performance amidst economic challenges to record a strong first half of 2021, in which the Bank’s Profit Before Tax (PBT) doubled or grew by 102% YoY to reach Rs. 505.7 million from Rs. 250.5 million recorded in H1, 2020. Profit After Tax (PAT) for the corresponding period y grew by 70% to reach Rs. 289.3 million in comparison to Rs. 170.4 million achieved a year ago.
In Q2 alone PBT and PAT grew YoY by 310% to Rs. 288.6 million and 291% to Rs. 158.6 million respectively from the corresponding quarter of 2020, which was heavily marred by the outbreak of Covid-19 in the country. The first half of 2021 also saw an 11% increase in Customer Advances to close at Rs. 69.4 billion, thereby showing signs of gradual improvement in economic activity despite many obstacles faced due to the pandemic, while Customer Deposits grew by 9% to close at Rs. 90.9 billion. The growth in customer deposits was achieved whilst maintaining a healthy CASA ratio of 46%. Despite challenging market sentiments, the Bank’s NPA continued to remain below the industry average where Gross NPA and Net NPA stood at 3.9% and 1.2% respectively, owing to prudent portfolio management and prompt customer engagement. The Bank’s Total Assets during the 6 months grew by 9% to close at Rs. 108.7 billion as at 30 June 2021. As a result of its growth in advances aided by a healthy financing margin of 3.9%, the Bank’s Net Financing Income grew significantly by 34% YoY to close mid-year at Rs. 2.0 billion, of which Rs 1.1 billion was contributed from Q2 alone. Net Operating Income after accounting for impairment closed at Rs. 1.97 billion (up YoY by 14%) and Rs. 1.03 billion (up YoY by 32%) for H1 and Q2 respectively.
Following the Bank’s ongoing effort to keep a close tab on its costs, which resulted in a 4% reduction in Operating Expenses in comparison to H1 2020, the Bank recorded an impressive 74% YoY growth in Operating Profit before VAT on Financial Services to reach Rs. 709.3 million, of which Rs. 400.5 million came in Q2. The Bank’s aggregate tax contribution for the first half, amounting to Rs. 420.0 million accounted for 59% of the Bank’s Operating Profit before all taxes. On August 1, 2021, Amãna Bank completed 10 years of people friendly banking, during a period in which the Bank crossed the milestone of Rs. 100 billion in total assets.
– Sunday Observer Sri Lanka
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