Amana Bank 2Q PAT up 37%

MD/CEO Mohamed Azmeer

Amana Bank continued its strong growth momentum in 1H 2025, delivering a solid performance with profit before tax (PBT) surpassing the Rs.1.5 billion mark, reflecting a 14 percent year-on-year (YoY) increase. 

Profit after tax (PAT) also rose significantly by 18 percent YoY to Rs.901.3 million. For 2Q alone, PBT grew by an impressive 29 percent to Rs.798.6 million, while PAT surged by 37 percent to Rs.467.2 million.

On the bank’s topline performance, net financing income for the first half of 2025 grew by 8 percent to reach Rs.3.8 billion, supported by a healthy financing margin of 4.0 percent. A similar growth trend was recorded in 2Q, with net financing income amounting to Rs.1.89 billion. The bank’s net fee and commission income recorded a strong growth, increasing by 59 percent to Rs.370.2 million in 2Q and by 30 percent to Rs.674.6 million in 1H 2025. This contributed to total operating income rising to Rs.2.35 billion in 2Q and Rs.4.73 billion in 1H, translating to a growth of 14 percent and 7 percent, respectively. 

The bank achieved a 59 percent YoY reduction in impairment charges, resulting in a 12 percent increase in net operating income to Rs.4.59 billion in 1H 2025. Maintaining a cost to income ratio of 52 percent, the bank went on to record a 16 percent growth in operating profit before all taxes to close at Rs.2.1 billion. The bank’s aggregate tax contribution of Rs.1.21 billion accounted for a significant 57 percent of the bank’s operating profit before all taxes.

The bank recorded a commendable 20 percent or Rs.22.7 billion increase in customer advances during 1H 2025 to close at Rs.134.1 billion, whilst setting an industry benchmark with advances consisting of 67 percent of total assets. This performance was achieved while continuing to have one of the lowest industry-wide stage three impaired financing ratio of 1.2 percent. The bank’s deposits grew by Rs.15 billion to close the quarter with Rs.169.3 billion while maintaining an industry best CASA ratio of 44 percent. During the six-month period, the bank surpassed the Rs.200 billion strategic milestone in total assets, closing at Rs.200.5 billion as of June 30, 2025.

The bank’s return on equity and return on assets stood at 7.8 percent and 1.6 percent, respectively. Further, Amana Bank’s common equity tier one ratio closed at 13.2 percent, whilst total capital ratio was at 15.4 percent, well above the regulatory minimum requirement of 7 percent and 12.5 percent, respectively.

Chairman Asgi Akbarally said, “Amana Bank’s consistent and resilient performance reflects the strength of our unique banking model and the trust our customers and stakeholders place in us.”

Managing Director/CEO Mohamed Azmeer stated, “Our development-focused approach, prudent risk management and emphasis on empowering people and businesses have been key to this performance.”