Pan Asia Bank’s third quarter earnings up; de-growth in loans continues

Pan Asia Banking Corporation PLC reported higher earnings for the period ended September 30, 2023 (3Q23) amid strong top line performance, though the bank still recorded a de-growth in its lending book.
The bank reported earnings of 72 cents a share of Rs.316.7 million for 3Q23 compared to earnings of Rs.23 cents or R.100.7 million reported for the same period last year.
Bank’s net interest income rose 28 percent year-on-year (YoY) to Rs.2.9 billion while net fee and commission income fell 5 percent YoY to Rs.374.2 million.
Amid higher trading gains the bank reported an operating income of Rs.3.2 billion, up 42 percent YoY.

The impairment charges on possible bad loans remained flat for the quarter under review and came down by 20 percent YoY for the nine-month period.
Total operating expenses for 3Q23 rose 28 percent YoY to Rs.1.5 billion amid a 37 percent YoY rise in personal expenses to Rs.678.4 million.
The income tax expense for the quarter under review surged 867 percent YoY to Rs.284.4 million.
Bank’s loan growth contracted by 8 percent during the nine-month period to Rs.132.1 billion. The deposit base however rose 5 percent to Rs.170.6 billion.
Total assets of the bank rose 7 percent to Rs.223.5 billion.

The bank’s stage 3 loans ratio, which reflects the asset quality, was 4.58 percent as at September 30, 2023, compared to 3.63 percent nine months ago.
The bank maintains all its capital and liquidity ratios well above the regulatory minimum standards. Its tier 1 capital ratio and total capital ratio as of September 30, 2023 stood at 15.81 percent and 17.73 percent respectively. Further, the bank’s leverage ratio stood at 7.78 percent as at September 30, 2023. 
Dhammika Perera owns 29.99 percent of the issued shares of the bank.