Amãna Bank, Sri Lanka’s premier non-interest based banking institution, continued its upward profitability momentum by recording a 3Q profit of Rs. 50.6 million following its 1Q and 2Q profit of Rs. 23.1 million and Rs. 47.5 million respectively. The Bank’s Operating Profit before Value Added Tax for the nine months ended 30 September 2015 increased to Rs. 225.2 million.
Bolstered by strong growth in revenue and effective cost management the profit of Rs. 121.2 million recorded for the first nine months of 2015, demonstrates a significant improvement of Rs. 290.0 million or 171.8 percent when compared with the loss of Rs. 168.7 million posted in the corresponding period of 2014.
The Bank’s top line recorded impressive growth with Financing Income reaching Rs. 2.0 billion while Net Operating Income grew by 31.8 percent to stand at Rs. 1.4 billion.
Having started the year with Rs. 34.9 billion in Total Assets, the Bank’s asset base grew up to Rs. 43.4 billion during the nine months recording an impressive growth of 24.5 percent. Customer Advances and Customer Deposits showcased noteworthy improvements closing at Rs. 30.2 billion and Rs. 34.8 billion respectively. The Bank continued to maintain a low Gross Non Performing Advances Ratio of 1.21 percent, which stands well below the industry average reflecting the Bank’s strong focus on portfolio quality through effective credit risk management policies and procedures. Net Non Performing Advances at the close of 3Q stood at 0.52 percent.
Commenting on the Bank’s performance to-date, Chief Executive Officer Mohamed Azmeer stated “I am happy to note that the Bank has been successful in achieving four successive quarters of profits, starting from 4Q in 2014. This promising upward trend resulting in higher than anticipated profits is owing to the revenue growth achieved by the Bank demonstrating the unique value proposition of its model and gaining widespread acceptance. It is also supported by the Bank’s continuous focus in cost management and service excellence. The avenues of growth, reflects our focus of being a Retail and SME Bank, in line with the Bank’s 5 year strategic plan.”
Amãna Bank is the first Licensed Commercial Bank in Sri Lanka to operate in complete harmony with the non-interest based Islamic banking model and is listed on the Diri Savi Board of the Colombo Stock Exchange. Fitch Ratings, in October 2015, affirmed the Bank’s National Long Term Rating of BB(lka) with a Stable Outlook.