Amana Bank records best ever PBT in 3Q23; 9-month PBT up by 78%

Recording its best ever quarterly performance, Amana Bank PLC continued its strong profitability trend in 2023, as it closed the nine months ending on September 30, 2023, with a profit before tax (PBT) of Rs.1.68 billion, up 70 percent year-on-year (YoY)
The bank in 3Q23 alone accounted to an all-time high quarterly PBT of Rs.874.0 million, which is an impressive 128 
percent YoY. 

This performance was a result of the bank’s continued support towards SME, corporate and retail sectors, facilitating their needs, while adding value to the economy at this crucial juncture, where the country’s economic revival is taking shape.  
After a total tax pay out of 65 percent, the bank achieved a nine-month profit after tax (PAT) of Rs.891.5 million, up by 48 percent from Rs.600.5 million posted last year. The bank’s 3Q PAT grew by a notable 98 percent to Rs.471.9 million, from Rs.238.5 million. 

As a result of this impressive performance, the bank’s return on equity surpassed 8 percent as at 3Q23, compared to 5.6 percent as at the year end of 2022.
The bank maintained a strong top line performance, supported by effective deployment of funds and improved demand for credit, which resulted in a 60 percent YoY growth in financing income to reach Rs.12.97 billion, from Rs.8.09 billion achieved a year back. 

Improving its financing margin to 4.5 percent, from 3.6 percent, the bank recorded a net financing income of Rs.4.85 billion, reflecting a 56 percent 
YoY increase.
The net fee and commission income and net trading income posted were Rs.701.4 million (36 percent YoY growth) and Rs.1.17 billion (83 percent YoY growth), respectively, resulting in the bank’s total operating income to grow by a significant 58 percent to reach Rs.6.74 billion. 

Despite providing for a higher level of impairment, the bank grew its net operating income by 51 percent to reach Rs.5.29 billion, from Rs.3.49 billion reported 12 months back. The bank posted a commendable YoY growth of 92 percent in operating profit before all taxes to reach Rs.2.54 billion, compared to Rs.1.32 billion achieved a year back. 
In the backdrop of tight liquidity conditions in the market, Amana Bank continued to witness an increase in acceptance for its people-friendly banking model, resulting in customer deposits growing by Rs.15.8 billion or 14 percent during the nine months to close the quarter with a portfolio of Rs.128.3 billion, maintaining a healthy CASA ratio of
 40 percent. 

With the gradual expansion of private sector credit growth and easing of import restrictions, the bank’s advances portfolio recorded a 5 percent growth to close at Rs.87.1 billion. 
Owing to timely customer engagement and effective portfolio management, the bank continued to have one of the lowest industry-wide Stage 3 impaired financing ratio of 1.6 percent. 
The bank’s total assets as at September 30, 2023, stood at Rs.148.3 billion, while shareholders’ funds exceeded Rs.15 billion.