Business
Pan Asia Bank achieves a Post Tax Profit of Rs. 2 bn during first 9 months amid challenges – profit for the quarter soars by 89%
Net Interest Income – Rs. 6,669 Mn, up by 23% Net Fee and Commission Income – Rs. 1,256 Mn, up by 41% Other Operating Income – Rs. 274 Mn, up by 40% Operating Profits up by 42% to post Rs. 3,342 Mn Profit before Tax – Rs. 2,718 Mn, up by 46% despite increased prudential provisions.
Key Profitability Indicators are among the best in the industry
– Net Interest Margin improves from 4.41% to 4.81%
– Return on Assets (Pre-tax) improves from 1.70% to 1.96%
– Return on Equity (Post-tax) improves from 14.36% to 16.13%
Loans and Advances book reaches Rs. 143 Bn, up by 9%
Customer Deposits reach Rs. 149 Bn, up by 6%
Net Non-Performing Advances Ratio improves from 2.34% to 1.28%
Total Impairment Provision cover reaches 76.10% due to prudential provisioning
The Bank remains highly liquid and well capitalised – all Liquidity and Capital Ratios are well above the regulatory minimums
Pan Asia Banking Corporation PLC reported an impressive performance for the 9 months period ended 30th September 2021 to report a Pre-Tax Profit of Rs. 2,718 Mn and a Post-Tax Profit of Rs. 2,008 Mn with growth rates of 46% and 61% respectively, while demonstrating the resilience amid challenging macro economic conditions. The Bank’s performance was characterised by strength and resilience despite the heightened uncertainty due to the impact of the COVID-19 pandemic.
Against the backdrop of the COVID-19 impact on the Sri Lankan economy, the Bank’s Operating Profit before VAT on Financial Services reached Rs. 3,342 Mn with an increase of 42% reflecting the excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key profitability matrices which now rank among the industry bests. This feat was achieved even after setting aside sizable provision buffers for the probable deterioration in credit quality due to COVID-19 pandemic. The Bank increased its provision buffers for loan losses during the 9 months period sensibly taking into consideration of increased risks and uncertainties due to COVID-19 pandemic through experience adjustments and management overlays. As a result, total impairment charge for the 9 months period ended 30th September 2021 increased by 17%.
The Bank’s Net Interest Income (NII) for the period witnessed an increase of 23% due to significant reduction in financial cost of funds at a rate faster than the drop in interest yields of interest earning assets although extension of debt moratoriums to sectors affected by the COVID 19 pandemic had an adverse impact on NII. Consequently, the Bank’s Net Interest Margin for the period improved to 4.81% from 4.41% reported 9 months ago.
In the meantime, the Bank’s Net Fee and Commission Income recorded a growth of 41% with the rebound in demand for credit due to revival of economic activities during the 9 months period amidst the low interest rate regime despite the adverse impact of lockdowns had and waiver of fees and charges mandated by the industry regulator. Meanwhile, the volatility in foreign exchange rates enabled the Bank to increase its Foreign Exchange Income substantially as reflected in Other Operating Income. On the other hand, the aforementioned currency volatility had a negative impact on the Bank’s Net Trading Income due to mark-to-market losses on forward foreign exchange contracts and currency swaps.
The Bank is committed to revenue maximisation and cost management despite sector vulnerabilities that prevailed since last year. The Bank’s Cost-to-Income Ratio improved from 45.66% to 42.19% within the 9 months period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain the increase in overhead costs. The cost management culture embedded across the Bank assisted curtailing Other Operating Expenses by 8%. Meanwhile, increased allocations for staff performance bonuses, spending on development of human capital and staff welfare led to an increase in personnel costs during the reporting period compared to previous period despite the reduction in number of staff.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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