Pan Asia Bank profits after tax up 197%
Pan Asia Banking Corporation PLC has increased its Profit After Tax
(PAT) by 197% to Rs.300.2 million for the quarter ended September 30,
2015 (3Q-15) from a year ago, supported by improved performance from all
segments.
The earnings per share (EPS) rose to Rs.4.04 from Rs.1.36 a year ago.
The bank's PAT for the nine months ended September 30, 2015 has risen
by 171% year-on-year (yoy) to Rs.751 million (EPS of Rs.3.40). This is
the third consecutive quarter the bank has increased its after tax
profits by over 100% yoy.
This impressive performance was resulted by above average growth in
the bank's loans and receivables while maintaining healthy margins and
asset quality, continuous improvements in its cost structure and
enhanced service quality.
The growth in the bank's gross loans and receivables to customers has
continued to bypass the industry average and during the nine months to
September 2015 the portfolio grew by as much as 29% or Rs. 18.4 billion
accounting for close to 5% of the total private credit growth in the
economy during this period.
"This demonstrates that Pan Asia Bank plays a significant role in the
overall economy and we will continue to play the role of a catalyst in
meeting the financial needs of the aspirational Sri Lankans and
enterprises whilst contributing to the overall economic development of
the country," said Director and CEO, Pan Asia Bank, Dimantha Seneviratne.
At a time when the banking sector Return on Equity (RoE) comes under
pressure due to narrowing margins, Pan Asia Bank has continuously driven
its return to its stock holders up to 19.77% by the end of 3Q-15,
virtually doubling the RoE from 9.81% in December 2014.
The core-banking operations of the bank improved significantly as Net
Interest Income (NII) rose 72% and 55% to Rs.1.10 billion and 2.9
billion during 3Q-15 and nine months.
Despite the pressure on banking sector margins, the bank has widened
its net interest margin to 4.48% from 3.82% in December 2014 due to
prudent re-pricing and active assets and liability management.The bank
successfully raised Rs.4 billion in debentures in September to further
support its lending drive.
Meanwhile the bank's non-fund based incomes continued its growth
momentum as a result of concerted effort towards diversifying the income
sources.
The net fee and commission income rose 26% and 33% respectively to Rs.
189.6 million and Rs.572.4 million during 3Q-15 and the nine months
while other operating income and exchange income made a significant
contribution, rising by 161% and 132% respectively to Rs.217.7 million
and Rs.484 million.
Overall, the bank's total operating income i.e NII and non-fund based
income increased by 65% and 50% to Rs.1.54 billion and Rs. 4.21 billion.
Making further progress in efficiency, cost-to-income ratio was
brought down to 52% from 61% in nine months.The personnel expenses rose
by 19% and 22% to Rs.342.5 million and slightly over Rs.1 billion during
3Q-15 and nine months. The bank reached an asset base of Rs.103.1
billion by end September 2015. This reflects a 29% or Rs.23.5 billion
growth in assets during the first nine months.The deposit base of the
bank also grew by 19% or 12.5 billion to Rs. 77.4 billion.Completing its
re-financing green facility with the Global Climate Partnership Fund (GCPF),
the bank in September took the receipt of US $ 10 million (Rs.1.43
billion) further strengthening the FCY funding of the balance sheet.The
bank has further improved its asset quality as its gross and net
non-performing loan ratios declined to 5.36% and 3.64% from 5.73% and
3.78% in December 2014.
Capital adequacy levels - Tier I and Total Capital ratios remained at
7.14% and 11.66% by the end of 3Q 2015, above the regulatory minimum of
5% and 10%. |
