Pan Asia Bank kicks off September earnings with solid performance

Aravinda Perera

Naleen Edirisinghe

Pan Asia Banking Corporation PLC posted strong financial results for the nine months ended September 30, 2025, demonstrating resilience amid a gradually recovering macroeconomic environment and marking 30 years of operations.
The bank reported a 36 percent rise in profit after tax to Rs.3.02 billion, with earnings per share of Rs.6.83, reflecting disciplined portfolio and cost management and a focus on sustainable profitability.
The asset quality remained robust, with the Stage 3 loans at 2.06 percent, among the lowest in the sector, highlighting prudent credit risk management and strong underwriting practices.
Net fee and commission income rose 38 percent during the period, supported by higher demand for loans and advances amid low interest rates as well as growth in trade and remittance services, underscoring the bank’s diversified revenue base.
The bank continued to invest in staff development to attract and retain high-calibre professionals, critical for enhancing customer experience, fostering innovation and supporting long-term shareholder value.
The net interest margin was 4.64 percent, return on equity 14.46 percent and pre-tax return on assets 2.11 percent, reflecting the bank’s capacity to deliver strong shareholder returns.
Total assets grew 12 percent, driven by a 26 percent rise in loans and advances across SME, corporate and retail banking segments. Customer deposits increased Rs.26 billion or 14 percent to Rs.217 billion. The current and savings account ratio remained stable at 21.27 percent, reflecting a low-cost deposit base.
The bank maintained strong capital and liquidity positions throughout the period. Common Equity Tier 1 and Tier 1 capital ratios were 15.43 percent, above the regulatory minimums of 7.0 percent and 8.5 percent, respectively. The total capital ratio stood at 17.07 percent versus a statutory minimum of 12.5 percent and the leverage ratio was 7.96 percent, well above the 3 percent regulatory benchmark.
The liquidity coverage ratios also exceeded the regulatory requirements, with an all-currency LCR of 166.27 percent and a rupee LCR of 180.89 percent. The net stable funding ratio was 127.90 percent, demonstrating the bank’s capacity to maintain stable funding amid economic recovery.
“As we look to the future, we are strategically positioned to lead the next era of banking—driving innovation, expanding our footprint and creating long-term, enduring growth for all our stakeholders,” said Pan Asia Bank Chairman Aravinda Perera.
Pan Asia Bank Director and Chief Executive Officer Naleen Edirisinghe added, “Despite a dynamic operating environment, we achieved steady growth and improved profitability, underscoring the strength of our core banking strategy and the trust our customers continue to place in us. As we enter the next phase of our growth trajectory, we are investing in digital transformation, advanced risk management and trade finance capabilities. Celebrating 30 years of operations this year, we remain committed to sustainable growth and innovation for our stakeholders.”