Monday 3 August 2015

Pan Asia Bank posts record 1h profits

Pan Asia has posted record after tax profit of Rs.450.7 million for the first half of 2015 fiscal year (1H’15), recording an increase of 156% from the corresponding period last year.

This resulted in an earnings per share of Rs.3.08 risen from Rs.1.20 a year ago.

This performance has amply been supported by the bank’s second quarter (2Q’15) net profits which grew by as much 204% to Rs. 273.8 million.

The bank has been able to record this exceptional performance due to strong growth in its loan book, improved margins and the closer tab on costs coupled with operational efficiencies achieved during the period.

During the 1H’15 the bank has grown its loans and receivables by 13.7% to Rs.72 billion while expanding its Net Interest Margin (NIM) to 4.49% from 3.82% six months ago, which could be considered as a significant feat.

Pan Asia Bank closed the 2014 financial year expanding its loan book by 34%, among the highest credit growth by a licensed commercial bank in the country.

Quite notably, the bank has doubled its return to its shareholders, the Return on Equity (ROE) from 9.81% to 18.38% within a very short span of six months. This is a commendable achievement at a time when industry interest margins are under pressure.

Commenting on the 1H’15 financial performance, the bank’s Director and CEO, Dimantha Seneviratne said this performance had been possible due to the bank’s well balanced, sustainable growth in all areas of Retail, SME and Corporate banking coupled with improved efficiency and commitment from all staff.

“This is the highest profit after tax Pan Asia Bank has ever recorded in its history for the bank’s first half. In fact, we have achieved the whole of net profit we posted for 2014 financial year (i.e.Rs.415.2 million) in just six months. We have achieved this despite making adequate provisions for loans and other losses.” Seneviratne added.
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