Pan Asia Bank surpasses Rs. 1 bn post-tax milestone in latest figures
View(s):Pan Asia Banking Corporation PLC has reported its best ever profit recorded for a 9-month stretch anchored by solid growth in new loans, prudent margin and asset-liability management, the bank said in a media release.
For the nine months ended in September 30, 2018, the bank reported a post-tax profit of Rs.1,080 million, up by 18 per cent from the same period in 2017. The net interest income grew by a strong 21 per cent on a year-on-year (YoY) basis to Rs.4.43 billion supported by better margins recorded amid the rising cost of funds.
In the quarter ending September 2018 (3Q’18), the bank reported earnings of Rs.260.7 million on a net interest income of Rs.1.61 billion compared to Rs.301.3 million profit and Rs.1.29 billion net interest income reported in the same quarter last year.
“Higher credit costs set aside from profits on account of possible bad loans both during the quarter and during the nine months undermined the performance of the bank during this period,” it said.
The better top line performance during the nine months is also a reflection of relatively strong growth in loan book of over Rs. 15 billion which translates to a growth of 13.5 per cent in the loan book given the challenging market conditions prevailed during the period. The loan growth propelled the bank’s asset base to Rs.156.4 billion by the end of September, an increase of 13 per cent.
“We recorded quite a solid growth in our loan book during the first nine months of 2018 amid the many headwinds we faced during this period. I consider this achievement noteworthy because we recorded it amid a moderation in sector loan growth and rising non-performing loans,” said Nimal Tillekeratne, Pan Asia Bank’s Director/CEO.
Meanwhile despite the rising non-performing loans in the industry, Pan Asia Bank managed its gross non-performing ratio at 4.83 per cent by the end of September from 4.36 per cent in December 2017.
The bank also increased its deposit base by Rs.9.1 billion anchoring much of the growth in the loans. Out of these total deposits, Current and Savings Account deposits – a key measure of the bank’s performance in low cost funds rose to 19.6 per cent from just under 17.7 per cent in December 2017 providing a much needed boost to the bank’s margins.