Pan Asia Bank surpasses post-tax of Rs.1.5 bn for 2018
View(s):Pan Asia Banking Corporation PLC reported a solid bottom-line growth while recording a double digit growth in the loan book as the bank ploughed ahead amid the economic headwinds and the first time impact from the SLFRS 09, new accounting standard on Financial Instruments which factor Expected credit loss principles for loan loss previsioning.
Pan Asia Bank reported a strong 34 per cent growth in total operating income during the financial year ended in December 31, 2018 to record Rs.8.93 billion, it said in a media release. This was supported by an equally strong fund based income and non-fund based income for the period.
Net interest income for the year rose by a robust 39 per cent to Rs. 6.52 billion on the back of a Rs. 19.16 billion interest income and Rs.12.64 billion interest expense
Meanwhile the non-funded income of the bank rose by 22.1 per cent to Rs.2.41 billion of which net fee and commission income had Rs.1.52 billion share which itself grew by 16 per cent during the year.
The bank observed a substantial improvement in the other operating income in 2018 rising by 54 per cent to Rs.412.2 million.
Speaking on the year-end financial results, Pan Asia Bank’s Director/Chief Executive Officer, Nimal Tillekeratne said these numbers reflect the bank’s resilience and its ability to perform amid challenging circumstances.
“Broadly speaking, 2018 didn’t treat the banking sector well with the existence of multiple headwinds. The general deterioration in the asset quality in the sector, higher loan impairment charges resulting from the new accounting standard SLFRS 9, industry specific taxes such as debt repayment levy and the broader moderation in the demand for loans were quite conspicuous during 2018,” said Mr. Tillekeratne while commending the staff for pulling off a strong performance amid these multifaceted challenges.
Pan Asia Bank reported a double digit growth in the loans, deposits and the assets when the peer growth was languishing.
Total operating expenses rose by 15.5 per cent during 2018 to Rs. 4.31 billion led by the personnel expenses which in turn rose by 15.9 per cent to Rs.1.87 billion in 2018.