Amãna Bank, having paid its inaugural dividend payment in 2018, continued its profit momentum to end the year on a significant note, despite the challenging market environment.
Profit Before Tax recorded Rs 902 million, reflecting a YoY growth of 22%. The PAT for the same period was up by 11% recording Rs 556 million, after having provided Rs 346 million as Income tax.
The Bank was also recognized amongst Sri Lanka’s top 100 listed companies by LMD in 2018 while being the youngest listed entity to be on this ranking.
Owing to the increase in acceptance and demand for the Bank’s people friendly banking model, the Bank’s Financing Income recorded 24% YoY growth to reach R 6.88 billion from LKR 5.54 billion, while Net Financing Income grew to Rs 3.36 billion from Rs 2.75 billion, reflecting a 22% YoY growth.
Through the increase in top line income along with effective pricing strategies, the Bank continued to maintain a healthy Financing Margin well above industry recording 4.4% compared to 4.2% in 2017. Complementing the strong momentum of growth in core banking, the Bank’s Net Fee and Commission Income reported an impressive YoY growth of 26% to achieve LKR 297 million. The introduction of new accounting standard SLFRS 9 saw impairment charges on advances increase drastically across the banking industry as the computation moved away from Incurred Loss method to Expected Credit Loss method. Despite this increase the Bank was successful in achieving an impressive 25% YoY growth in Operating Profit before all Taxes to close the year with a cumulative value of LKR 1.32 billion.
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