Pan Asia Bank posts steady performance in 1st half 2024

Above: Aravinda Perera- Chairman & Naleen Edirisinghe - Director/CEO of Pan Asia Bank

Pan Asia Banking Corporation PLC has reported a steady performance reflecting improved macro-economic conditions during the first half of 2024.

The bank reported a pre-tax profit of Rs. 1,996 million for the six months period ended 30^th June 2024, which is a 32 per cent increase compared to the corresponding period last year. The performance was supported by improved net interest income, net fee and commission income, and other operating income, the bank said in a media release.

The Sri Lankan economy has experienced some positive signs of gradual economic recovery and a measure of stability in macro-economic factors compared to the corresponding period last year, with the appreciation of the LKR against USD and the IMF bailout, followed by the domestic and foreign debt optimization announcements made by the Government of Sri Lanka.

The models used regarding collective impairment in 2023 were continued in the 1^st half 2024 to ensure that adequate provision buffers were in place to absorb any potential credit risk that could arise in the future. The allowance for overlays applied in 2023 was continued and maintained during 1^st half 2024 as well. 

The bank’s net fee and commission income has increased by 24 per cent during 1^st half 2024, mainly due to the increase in fee income generated from loans and advances, due to increased demand for credit which resulted from the prevailing low interest rate regime and other conducive macro-economic factors in the country.

The bank strived for earnings maximization through portfolio re-alignment and effective cost management amidst improved macro-economic conditions as the bank reported an improved Cost-to-Income Ratio of 45.77 per cent during the 1^st half of 2024 from 48.31 per cent for the year 2023.    

The bank reported a profit after tax (PAT) of Rs. 1,025 million in 1st half 2024 which is an 11 per cent increase compared to the corresponding period last year.   

Commenting on the bank’s performance, Naleen Edirisinghe, Director and CEO of Pan Asia Bank said, “Our resounding performance for the 1^st half 2024 demonstrates that we are well on track to meet our ambitious targets post the economic crisis. A growth in PBT of 32 per cent for the 1st half 2024 affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies. Pan Asia Bank leveraged on its spirit of innovation backed by digital enhancements and can-do spirit as one team to deliver this encouraging performance which sets the stage for the coming year”.