Pan Asia Bank’s PAT improves by 187% amidst external challenges

Pan Asia Banking Corporation PLC reflected a steady performance amidst multitude of adversities emerging from challenging macro-economic conditions as the Bank reported its financial performance for the Nine-Month period of 2023, which showed careful portfolio management and prudency exercised in dealing with possible fallout on its asset quality under high interest rate regime. For the duration of 9 months ended 30th September 2023, the Bank reported a Pre-Tax Profit of Rs. 2,117 Mn, which is 238% increase compared to corresponding period last year, mainly due to increased trading gains from government securities, reduced exchange losses and reduced credit costs.

Operating Profits for the Period Rs. 2,927 Mn, up by 200%

Profit Before Tax for the Period Rs.2,117 Mn, up by 238%

Profit After Tax for the Period – Rs.1,242 Mn, up by 187%

Total Assets grows by Rs. 15.5 Bn

Customer Deposit Base reaches Rs. 171 Bn, up by 5%

The Bank reports a Net Interest Margin of 4.58% and a pre-tax Return on Assets of 1.30%

The Bank’s Stage 3 Loans ratio stands at 4.26%

The Bank remains well capitalised and liquid:

– Tier 1 Capital Ratio 15.81% (Regulatory Minimum – 8.50%)

– Total Capital Ratio 17.73% (Regulatory Minimum – 12.50%)

– Rupee LCR 498.84%, All Currency LCR 442.74% (Regulatory Minimum – 100%)

– Statutory Liquid Asset Ratio (SLAR) – 36.10%

The Sri Lankan economy has experienced some positive signs of gradual economic recovery and a measure of stability in macro-economic factors compared to the previous period, with the appreciation of LKR against USD and the IMF bailout followed by the Domestic Debt Optimization (DDO) announcement. The impairment charges for the 9 Months came down by 20% compared to the comparative period due to steady collection and recovery efforts and contraction in the loan book during the period under review. Meanwhile, the management increased impairment provision buffers on SLISBs with the expectation of possible adverse outcomes of the on-going government external debt restructuring programme.