Amana Bank’s resilient performance continues

Amana Bank continued its growth momentum in profit amidst subdued economic conditions, and recorded a growth of 25 per cent in mid-year Profit after Tax to reach Rs.362 million in comparison to Rs.289.3 million a year ago. Profit Before Tax stood at Rs.556.9 million compared to Rs.505.7 million posted in H1 2021, reflecting a 10 per cent YoY growth.

In a statement the bank said that during the first six months which was marred by economic and political instability, the bank’s Financing Income grew by 35 per cent to Rs.4.85 billion. Owing to policy rate changes reflecting in higher cost of deposits, the bank’s Net Financing Income grew marginally to cross the Rs.2 billion mark. Despite this, Total Operating Income recorded a 20 per cent growth to reach Rs.2.69 billion, which was supported by a significant growth in Net Fee and Commission Income as well as Net Trading Income.

Despite headline inflation being in excess of 58 per cent in June 2022, the bank contained the increase in its operating expenses to 12 per cent.

Owing to consolidation of business activities and decline in private sector credit growth as a result of tight monetary and market liquidity conditions, the bank’s Customer Advances grew by 5 per cent to close at Rs.79.3 billion while Customer Deposits grew by 8 per cent to close at Rs.103.6 billion.

Commenting on the bank’s mid-year performance Managing Director/CEO Mohamed Azmeer said: “Having achieved a very strong Q1 performance, owing to the economic and political challenges during the period, our focus was to remain resilient during Q2 by proactively and effectively responding to the environment.  I am happy that we were able to maintain our resilient performance in Q2, despite the unprecedented challenges in the external environment. Considering the macroeconomic challenges, the bank in line with Central Bank guidelines, continued to extend moratorium concessions to affected individual and business customers during the last few months.”