Pan Asia Bank posts steady 1H 2023 performance

Pan Asia Banking Corporation PLC has shown a steady performance in first half 2023 amidst a multitude of adversities emerging from challenging macro-economic conditions.

For the 6-month period ending June 2023, the bank reported a Pre-Tax Profit of Rs. 1,516 million, which is a 206 per cent increase compared to corresponding period last year, mainly due to increased trading gains from government securities, reduced exchange losses and reduced impairment charges, the bank said in a media release.

Impairment charges for 1H 2023 came down by 31 per cent compared to the comparative period due to steady collection and recovery efforts and contraction in loan book during the period under review.

Interest income for the 1H rose by 73 per cent due to increased market lending rates that prevailed during the period under review compared to 2022 1H and the re-pricing effect of facilities in response to the market conditions. Further, the significant volume growth in Pawning and Short-Term Loans (YoY) also contributed to the increase in loan related interest income.

Interest expense for 2023 1H has also gone up significantly by 148 per cent due to the steep increase in deposit rates, re-pricing effect of deposits as a response to the market conditions and growth in deposit base.

The bank’s Post-Tax Profit has increased by 179 per cent to Rs. 926 million in 2023 1H from Rs. 332 million in 2022 1H due to the overall excellence.