Amãna Bank achieved a commendable Q1 performance in 2020, which saw its customer deposits grow by Rs 5.4 billion or by 8% to close the quarter at Rs 77.0 billion. As a result of conscious strengthening of credit risk parameters in the backdrop of challenging market conditions, advances grew only by 1% to close at Rs 58.4 billion.
The growth in customer deposits is a strong indication of the growing customer confidence and demand for the Bank’s people-friendly banking model. The growth also reflects the Bank’s effort in increasing its reach through strategic partnerships and collaborations, resulting in the Bank having one of the largest networks for deposits with 750+ access points across the Island.
Owing to the increase in customer deposits, the Bank’s Total Assets surpassed the Rs 90 billion mark to read at Rs 91.6 billion resulting in the Bank’s Net Asset Value improving to Rs. 4.78 per share.
Despite the challenging economic conditions which continued, Amãna Bank has been successful in maintaining its profit momentum in Q1 2020, recording a Profit Before Tax of Rs 180.2 million which remained flat when compared with the Q1 2019 figure of 180.8 million. Profit After Tax was recorded as Rs 129.8 million which saw a 3% increase from Q1 2019. The PAT includes the benefit of tax concessions that were offered for the current year as part of reforms to banking sector taxation.
The Bank also continued to maintain a healthy asset portfolio with non performing ratios being well below industry averages, where Net NPA and Gross NPA stood at 1.8% and 4.0% respectively.
Commenting on its Q1 2020 performance, the Bank’s Chief Executive Officer Mohamed Azmeer said “I am pleased to witness that the strategies and measures taken during 2019 has helped the bank withstand the challenging economic conditions and record a satisfactory performance in Q1 2020. However, with the recent outbreak of COVID-19 which has disrupted economies across the world, we have to brace ourselves for greater impact on profitability. In this context, I am happy to note that our positive trend in deposit growth since 2019, which is also evident in Q1 2020, has helped the Bank grow in strength and stability, positioning it well to face the challenges of the coming quarters while doing our best to support the country’s efforts to overcome the economic effects of this pandemic.”
Amana Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah based IsDB Group being the principal shareholder having a 29.97% shareholding of the Bank. The IsDB Group is a ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. In June 2019 Fitch ratings affirmed Amana Bank’s National long term Rating of BB (lka) with a positive outlook. Amãna Bank is a standalone entity which does not have any subsidiaries, associates or affiliated institutions, other than the ‘OrphanCare’ Trust.
