Pan Asia Bank records best yearly results, PAT soars by 17% to Rs. 2 bn | Daily News

Pan Asia Bank records best yearly results, PAT soars by 17% to Rs. 2 bn

Pan Asia Banking Corporation PLC reported the best-ever annual financial results during the year ended December 31, 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.

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 of 31st December 2020.

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.

The Bank’s net interest margins improved from 4.36% to 4.41% during the year which a commendable feat.

The Bank’s Pre-Tax Return on Assets also improved to 1.70% in 2020 from 1.52% in 2019. Meanwhile, the Bank’s Post-Tax Return on Assets also improved to 1.23% in 2020 from 1.15% in 2019.

The Bank’s total asset base stood at Rs. 176.94 billion as of 31st December 2020 after reporting a growth of over 16%, supported by the expansion in gross loans and advances and other financial instruments at amortized cost. Meanwhile, the Bank’s gross loans and advances book recorded a strong growth of over 11% in 2020 to reach Rs. 130.75 billion.

The Customer Deposits recorded a commendable growth of over 15% to reach Rs. 141.08 billion by December 31, 2020. The Bank’s CASA base grew by Rs.12.99 billion phenomenal.

Bank’s Director/CEO, Nimal Tillekeratne said; “This is the best post-tax profits in a financial year the Bank had in its history of 25 years.

We have achieved this feat while building additional provision buffers to deal with possible deterioration in credit quality due to the impact of COVID-19 pandemic.”The Bank maintains all capital and liquidity ratios well above the regulatory minimum.

Both Common Equity Tier 1 Capital Ratio and Tier 1 Capital Ratio as of 31st December 2020 improved during the year to remain at 13.24%.