Amana Bank’s resilience continues with 44 % growth in Mid-Year PBT

Amana Bank continued its upward performance trend by recording a 2023 Mid-Year Profit Before Tax (PBT) of Rs. 802.8 million, reflecting a substantial growth of 44 per cent in comparison to Rs. 556.9 million booked a year back.

Owing to its resilient performance despite the challenging economic environment, the bank in Q2 alone achieved a YoY PBT growth of 122 per cent to reach Rs. 379.4 million from Rs. 171.2 million. Despite accounting for higher taxes, the bank went on to achieve a half yearly Profit After Tax (PAT) of Rs. 419.6 million corresponding to a healthy growth of 16 per cent, whereas in Q2 the bank’s PAT grew by 79 per cent from Rs. 111.3 million to Rs. 198.9 million, it said in a media release.

The bank maintained its robust top-line performance through the first half of 2023, posting an 80 per cent growth in Financing Income from Rs. 4.85 billion to reach Rs. 8.75 billion, which was well supported by effective deployment of funds and timely re-pricing of advances and liabilities. As a result the bank’s Financing Margin improved to 4.8 per cent from 3.6 per cent to end the first half with a Net Financing Income of Rs. 3.36 billion, reflecting a 68 per cent YoY increase.

The bank’s Total Operating Income grew by a significant 66 per cent to reach Rs. 4.47 billion, with Net Fee and Commission Income and Net Trading Income contributing Rs. 474.4 million (66 per cent YoY growth) and Rs. 622.9 million (47 per cent YoY growth) respectively. Despite accounting for a higher level of impairment to mitigate risks of those businesses vulnerable to economic shocks, which resulted in impairment charges increasing by 191 per cent, the bank fared to grow its Net Operating Income by 38 per cent to reach Rs. 3.04 billion from Rs. 2.19 billion posted in H1 2022.

The bank posted a growth of 57 per cent in Operating Profit Before VAT on Financial Services and Social Security Contribution Levy for H1 to reach Rs. 1.23 billion compared to Rs. 0.78 billion achieved a year back. Total Comprehensive Income for the period stood at Rs. 387.2 million reflecting a healthy YoY growth of 38 per cent.

Amidst tight liquidity conditions and competition for funds in the market, the bank continued to witness an increase in acceptance for its people friendly banking model, resulting in Customer Deposits growing by a commendable 9 per cent to close H1 2023 with a portfolio of Rs. 122.9 billion, maintaining a healthy CASA ratio of 42 per cent, while Customers Advances closed at Rs. 80 billion.

Commenting on the bank’s mid-year performance, Chairman Asgi Akbarally said “Amana Bank's exceptional performance in the first half of 2023 stands as a testament to our unwavering resilience in the face of a challenging environment. With our people-friendly banking model at the forefront, we have not only weathered the storm but thrived, achieving one of our best-ever quarters and setting new standards of achievement. As economic conditions progressively show signs of improvement, our optimism continues to grow. We extend our deepest gratitude to our esteemed stakeholders who have been pivotal to our journey, and we eagerly anticipate the opportunities that lie ahead.”

Also sharing his views on the bank’s performance, Managing Director/CEO Mohamed Azmeer said “Our strong mid-year performance in the backdrop of the current macroeconomic environment, echoes the bank’s stability, resilience and continued acceptance. This achievement reinforces Amana Bank’s commitment in stimulating economic growth through our people friendly banking model, fostering financial well-being to our customers.”