Financial News

Pan Asia Bank doubles 1Q’15 net profits to Rs. 177mn

06 May 2015 - {{hitsCtrl.values.hits}}

Bank records strong core-banking operations amid falling interest rates

Pan Asia Banking Corporation PLC (PABC) has posted a net profit of Rs.177 million for the quarter ended March 31, 2015 (1Q’15) recording a growth of 106 percent from a year earlier.
As a result the earnings per share has improved to Rs.2.43 from Rs.1.18 during the period.
The growth in the profit before tax was 231 percent year-on-year (yoy) to Rs. 270.2 million.
The bank has been able to record this commendable performance due to the growth of its loan book coupled with expanding net interest margin. This has also been amply assisted by the cost discipline demonstrated throughout in delivering its services.
During the quarter the bank grew its loans and receivable by 10 percent to Rs. 69.2 billion. This mirrors the pickup in credit growth in the economy in comparison to the much lackluster demand for credit during the corresponding quarter in 2014.
Pan Asia Bank closed the 2014 financial year expanding its loan book by 34 percent, among the highest credit growths by a licensed commercial banks in the country, which continued to 1Q’15 as well.
Meanwhile the bank has managed to significantly improve its Return on Equity (RoE), a key performance measure in the banking industry. During the three months the RoE increased by as much as 5.07 percent to 14.88 percent.
This is considered as a key achievement given the challenge to improve returns to its stockholders by the banking sector when the margins are under continuous pressure and the regulatory capital requirements are increasing.
Commenting on the first quarter performance, the bank’s Director and CEO, Dimantha Seneviratne said the first quarter performance of the bank is a testament to its prudent management strategies in sustainable asset growth and cost management that provides an ideal platform to reach its financial and other targets set for the remainder of 2015.
“During the first quarter the bank successfully migrated in to its new core-banking platform that will provide more flexibility in providing customized solutions and enhanced services to our clients,” Seneviratne further said.
Core-banking operations of the bank has fared exceptionally well during the quarter supported by the strong growth in credit and the timely asset and liability management.
The top line of the bank measured by the net interest income has grown by a healthy 20 percent year-on-year (yoy) to Rs.849.9 million. This has been possible mainly as a result of the sharp fall in interest expenses.
The interest expenses has fallen by 15 percent during 1Q’15 against its corresponding quarter last year due to re-pricing of the deposits at lower interest rates in line with the steep fall in the key market interest rates.
In a bid to diversify the income sources, the bank has made a special emphasis on improving its other income sources.
The net fee and commission income has increased by 47 percent yoy during the quarter to Rs. 202.5 million as a result of strong international trade related incomes.
This was further assisted by the strong remittance incomes collected by the bank leading up to the Sinhala and Tamil new-year.
During the 12 months to March 31, 2015 the bank filled key managerial positions by bringing in industry best professionals while the key talent was brought in at all other levels in bid to groom the next level of leaders of the bank as well as to support the growth.
Pan Asia Bank awaits the direction and economic policy of the new government helping to align the bank’s strategies in to the country’s growth and economic agenda. Further the bank will continuously strive to understand the needs of the aspirational society in the making in Sri Lanka to provide them with the most suitable and flexible financial solutions that are required by them.
The bank has already implemented its new core-banking system which will enhance its delivery efficiencies and facilitate the diversification in to new financial services.
Further, the bank will continuously invest on increasing its customer touch points; the branches and the digital banking channels which are gaining rapid momentum in the country in a bid to offer a fast and an efficient service to the bank’s clients

Financial News

Pan Asia Bank doubles 1Q’15 net profits to Rs. 177mn

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