Pan Asia Bank to get a new chairman
View(s):The Pan Asia Banking Corporation PLC (PABC), which has posted a Profit After Tax (PAT) of Rs. 304 million for the quarter ended March 31, 2016 (1Q’16) recording a 72 per cent growth from the same quarter last year is to get a new chairman at the end of this year, Central Bank officials said. They said that in line with good governance practices of Central Bank which requires directors over nine years to step down, Nimal Perera, Chairman PABC is slated to quit this year. They said it’s still not decided who will replace Mr. Perera in the Dhammika Perera-controlled bank.
PABC’s profit before tax rose at a rate of 79 per cent year-on-year (yoy) to Rs.484.5 million in the March quarter.
The quarter saw the bank’s gross loans and receivables expanding by 3.3 per cent to Rs. 90.1 billion in line with the slowdown in the private credit growth in the economy as a result of the monetary and fiscal tightening measures in place. The Return on Equity increased to 20.83 per cent from 14.88 per cent a year ago placing it amongst the highest in the industry and beyond. In the March quarter the Net Interest Income increased by 39 per cent yoy to Rs. 1.18 billion, which was possible due to proactive assets and liability management and recalibrating lower yielding assets while aligning the resource allocations to the growth areas, a PABC media release said.
The bank’s mark-to-market losses have been well contained due to prudent investment decisions, it said, adding that the total operating income i.e. net interest income and non interest income – grew by 25 per cent yoy to Rs. 1.58 billion demonstrating the sustainability of the bank’s income flows. Despite the total overheads of the bank increasing by 17 per cent to Rs. 817 million, the Cost-to-Income ratio – the key efficiency ratio – has come further down to 52 per cent from 53 per cent in December 2015. The cost of personnel which comprises the largest share in the total cost structure has increased by 20 per cent yoy due to the annual salary increments, the mid-year staff bonus and investments made on training and development. The total asset base of the bank as of March 31, 2016 stood at Rs.113.34 billion. This is a 5 per cent growth in the balance sheet during the quarter.