Wednesday 1 March 2017

Amana Bank records Rs.102 mn PBT in 2016

Amana Bank continued its positive growth momentum in core banking, leveraging on its strategic focus of being primarily an SME and Retail Bank in 2016.

Financing Income crossed the Rs 4 billion mark by end of 2016, corresponding to YoY growth of 40% whilst Net Finance Income during the same period grew by 30% to Rs 1.9 billion.

The Bank continued to gain from Net Fee and Commission Income which recorded a growth of 46.3% in 2016 to reach Rs 246.5 million. Total Operating Income during the year under review grew by 17.7% to reach Rs 2.4 billion. Despite the impressive growth in Core Banking, the Bank was able to record only a Profit Before Tax of Rs 102.8 million for the year, owing to the loss on impairment of Rs 149.1 million from non-core banking activities. This is attributed to recognizing the impact of underperforming capital market investments which were prevalent in the portfolio.

The Bank’s Total Assets crossed the Rs 50 billion milestone during the year and closed at Rs 54.3 billion, a growth of 13.8%. Owing to the strong demand for its multitude of products and services, the Bank’s Deposits and Advances grew by 22% and 16.3% to read at Rs 46.9 billion and Rs 38.4 billion respectively in 2016. Chairman Osman Kassim said “Amana Bank has been growing significantly with overwhelming customer acceptance of its unique banking model and we look forward to further acceleration in our growth journey strengthened by the forthcoming capital infusion.” Chief Executive Officer Mohamed Azmeer said although the one-off impairment has had an impact to profits,the Net Assets were not affected as a result, due to such losses being captured in the Bank’s reserves previously, and set off against profits in the fourth quarter.
www.dailynews.lk

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