Pan Asia Bank reports Rs. 2 bn PAT for 2020

Pan Asia Banking Corporation PLC reported the best-ever annual financial results during the year ended 31st December 2020 to report a Pre-Tax Profit of Rs. 2.84 billion and a Post-Tax Profit of Rs. 2.05 billion after recording impressive growth rates of 23% and 17% respectively, demonstrating resilience amidst challenging macro economic conditions.

Meanwhile, the Bank’s Operating Profit Before Taxes on Financial Services increased by 4%, reflecting excellence in core banking performance and the success of cost containment measures, despite the bank’s fee-based income declining sharply due to reduced business volumes resulting from disruptions caused by COVID-19 pandemic and waiver of fees and charges mandated by the regulator.

The Bank’s Earnings per Share (EPS) for the year rose to Rs. 4.63 in 2020 from Rs. 3.96 in 2019. The Bank’s Net Asset Value per Share increased by 16% during the year to reach Rs. 34.79 as at 31st December 2020.

The Bank has made extra provision buffers especially under stage 1 and stage 2 for probable deterioration in credit quality through management overlay adjustments and identification of elevated risk industries related exposures and staging them under relevant stages. As a result, total impairment charges for the year increased by 40% to record Rs. 1,596 million in 2020 compared to Rs.1,136 million in 2019.

The Bank’s growth in both profit before income tax and profit for the period was also supported by the low financial services tax regime that prevailed throughout the year 2020. Meanwhile, the Bank continued to compute income tax and deferred tax liabilities at the rate of 28% as the proposed new rate of 24% is yet to be legislated.