Pan Asia Bank posts best Q1 results, PAT soars by 81% to Rs. 750 mn | Daily News

Pan Asia Bank posts best Q1 results, PAT soars by 81% to Rs. 750 mn

Pan Asia Banking Corporation PLC reported the best-ever first quarter financial results during the quarter ended March 31, 2021 to report a Pre-Tax Profit of Rs. 986 million and a Post-Tax Profit of Rs. 750 million after recording impressive growth rates of 51% and 81% respectively, demonstrating the resilience amidst challenging macroeconomic conditions.

Against the backdrop of the COVID-19 impact on the Sri Lankan economy, the Bank’s Operating Profits before VAT on Financial Services reached Rs. 1,197 million with an increase of 47%, reflecting excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key matrices which now rank among the industry bests. This feat was achieved even after setting aside provisions for probable loan losses amounting to Rs. 638 million.

The Bank’s Net Interest Income for the period witnessed an increase of 17% due to significant reduction in financial cost of funds at a rate faster than the drop in interest yields of interest bearing assets. Consequently, the Bank’s Net Interest Margin for the quarter improved to 5.07% from 4.41% reported three months ago.

The Bank’s Cost-to-Income Ratio improved from 45.66% to 38.08% within a three months period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain overhead costs. In fact, the Bank managed to bring down its Other Operating Expenses by 9% in 2021 Q1 compared to 2020 Q1.

The Bank’s Post-Tax Profits for the reporting quarter also gained to an extent due to application of lower corporate income tax rate of 24% for tax provisioning in accordance with the guideline issued by CA Sri Lanka on April 23, 2021.

The Bank’s Gross Non-Performing Loan Ratio marginally slipped from 6.73% to 6.77% during the quarter amidst tough macro-economic conditions.