PABC Bank posts Rs. 163 m profit after tax

PABC Bank's growth and the impact they are creating in the industry is well reflected in the Bank's financials for the year 2006 that have been just released.

The Bank has seen another successful year in its 11 year history, it recorded an operating profit of Rs. 319 million in 2006 before VAT and taxes, yielding a net profit of Rs. 163 million after VAT and corporate taxes.

This is the third consecutive year the Bank has posted positive results, consequent to re-organising and re-engineering the Bank's operation four years ago.

Managing Director/CEO R. Nadarajah said PABC Bank is stronger in terms of its financial stability and the Bank is well managed. The key financial ratios are commendable and well within the industry standards.

The Bank infused additional capital in 2003 and has re-branded itself with a new logo and a new name and restated its vision and mission aspiring to leave an indelible mark in the industry.

Nadarajah said the "Increase in post-tax profit in 2006 over the previous year was 150%. Our post-tax profits of Rs. 163 million reflects a healthy return on Asset Ratio of 1.29%.

This is an indicator which measures the efficiency with which the Bank's Assets are managed. The total assets of the Bank as at December 31, 2006 has grown to Rs. 12.62 billion. The customer deposits have grown by 10.64% year on year whilst the net advances have increased by 17.33%.

The return on average capital funds have been 23.41%".