PABC sees improved growth this year
View(s):Pan Asia Banking Corporation PLC (PABC) reported Rs.498 million in profit before tax for the quarter ended in March 31, 2018 (1Q2018).
The bank, in a media release, said these results were “powered by a steady growth in new loans and improvement in overall margins which was due to prudent asset – liability pricing amidst rising market interest rates”.
This enabled the bank to increase its net interest income by 11 per cent to Rs.1.34 billion for the quarter from Rs.1.21 billion recorded in the same period last year.
The income tax charge for the quarter was Rs.185.16 million, up 16 per cent from the same period last year which resulted in a profit after tax of Rs. 312.8 million, down 11 per cent from the same period last year.
The release said that net trading gains rose sharply to Rs. 199.58 million during the quarter from Rs.69.83 million in the same period a year ago as the bank sold its short term investments in the trading portfolio realizing a sizable capital gain.
“The sound top-line performance was somewhat softened by the higher provisions made against possible bad loans and the higher tax liability for the period. The collective impairments rose sharply to Rs.183.83 million from a previous year reversal of Rs.38.32 million due to the relatively strong growth in the new loans across all segments – Corporate, Retail, SME and Credit Cards. Collective impairments rise as new loans grow,” the bank said. Speaking on the first quarter financial performance, Pan Asia Bank’s Director/ Chief Executive Officer Nimal Tillekeratne said although the bank witnessed a temporary slowdown in the bottom-line during its first quarter, the bank is now on a path of steadfast growth with built in resilience across all areas of operations which will reflect positively in the financial results in the coming quarters.