Amãna Bank records resilient performance in Q3

Mohamed Azmeer- Chief Executive Officer of Amana Bank

Deposits and assets grow by 12% and 10%

Amana Bank, through its resilient core banking performance, recorded a Profit Before Tax (PBT) of LKR 389 million and a Profit After Tax (PAT) of LKR 250 million for the nine months ending September 30, 2020. In comparison to the previous quarter which was impacted by the first wave of the pandemic, Amãna Bank has been able to bounce back by virtually doubling its profits in Q3, where PBT grew to LKR 139 million from LKR 70 million recorded in Q2 while PAT in Q3 went up to LKR 80 million from LKR 41 million in Q2.

Demonstrating strength, stability and resilience the Bank continued to maintain a strong momentum in customer deposits during the 9 months closing with a portfolio of LKR 80 billion reflecting a growth of 12% while also improving its CASA ratio to 43% which is one of the highest CASA ratios in the industry. The Bank’s total assets stood at LKR 95 billion, 10% higher than the 2019 closing figure. As a result of conscious strengthening of credit risk parameters in the backdrop of challenging market conditions, advances grew modestly by 3% to close at LKR 60 billion. The Bank continued to maintain a healthy asset portfolio with non performing ratios being well below industry averages where Net NPA and Gross NPA closed at 1.7% and 4.1% respectively. The Bank’s Q3 2020 comprehensive income grew to LKR 191 million recording a 37% increase against the Q3 2019 performance of LKR 140 million.

During the quarter the Bank continued its annual dividend journey by declaring its 3rd consecutive dividend, which was in the form of a scrip dividend this year. This increased the Bank’s number of shares to 2.6 billion resulting in the Bank’s Net Asset Value standing at LKR 4.70 per share. Strengthening the Bank’s position as a growing and stable franchise, Fitch Ratings Sri Lanka in its October 2020 review affirmed the Bank’s National Long Term Rating at BB+(lka) with a Stable Outlook.