Friday, 2 November 2018

Amãna Bank’s 9 month PAT grows by 61%

Amãna Bank continued its strong profit momentum for the year as its Profit After Tax for the 9 months ending 30 September grew significantly by 61% YoY to reach Rs 429.9 million from Rs 266.8 million recorded a year ago. The Profit Before Tax for the same period grew by 50% YoY to reach Rs 597.1 million compared to Rs 397.0 million recorded in the corresponding period of 2017.

Supported by a consistent profitability trend over the past few years, the Bank, for the first time in its relatively short history, paid an interim dividend of 7 cents per share totaling to Rs 175.1 million during the last quarter.

With its banking activities primarily revolving on Retail and SME banking, Amãna Bank’s Financing Income recorded a 23.6% YoY growth to reach Rs 4.95 billion from Rs 4.0 billion recorded in 2017. Net Financing Income grew to Rs 2.40 billion from Rs 1.96 billion reflecting a 22.7% YoY growth. The Bank continued to maintain a healthy Financing Margin of 4.4% compared to 4.2% at end 2017. Complementing the strong momentum of growth in core banking, the Bank’s Net Fee and Commission Income reported a commendable YoY growth of 28.2%.

Despite the increase in impairment charge on advances and considering only a 9.6% overall increase in operating expenses, the Bank was successful in achieving an impressive 38.1% YoY growth in Operating Profit before all Taxes to close the third quarter with a cumulative amount of Rs 937.3 million.
Despite the overall tightness of liquidity in the market, Amãna Bank’s Customer Deposits grew by 14.3% for the nine months to close at Rs 58.20 billion owing to the growing acceptance of the Bank’s people friendly non-interest based banking model.

Due to prevailing general market conditions, the Bank’s Gross Non Performing Advances Ratio increased to 2.78% from 1.89% at end 2017, which is below the Industry Gross Non Performing ratio of 3.1% as at June 2018.The Bank’s Net Non Performing Advances Ratio stood at a healthy 1.18%.

Chief Executive Officer Mohamed Azmeer said “It is noteworthy to reflect on our continuous profitability achievements, which has been very encouraging. Looking back in retrospect of our 5 year strategic plan, the success we have achieved and sustained thus far is a result of the long-standing confidence placed in us by our valued customers, determined shareholders and devoted staff, for which we are humbly grateful.”
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