Amana Bank continues profit momentum in Q1

Amana Bank achieved a commendable Q1 performance in 2020, which saw its customer deposits grow by Rs 5.4 billion or by 8 per cent to close the quarter at Rs. 77 billion. However as a result of conscious strengthening of credit risk parameters in the backdrop of challenging market conditions, advances grew only by 1 per cent to close at Rs. 58.4 billion, the bank said in a media release.

Despite the challenging economic conditions which continued, the bank has been successful in maintaining its profit momentum in Q1 2020, recording a Profit before Tax of Rs. 180.2 million which remained flat when compared with the Q1 2019 figure of Rs. 180.8 million. Profit after Tax was recorded as Rs. 129.8 million which saw a 3 per cent increase from Q1 2019. The PAT includes the benefit of tax concessions that were offered for the current year as part of reforms to banking sector taxation, the bank said in a media release.  

The bank also continued to maintain a healthy asset portfolio with non performing ratios being well below industry averages, where Net NPA and Gross NPA stood at 1.8 per cent and 4 per cent respectively.

Commenting on its Q1 2020 performance, the Bank’s CEO Mohamed Azmeer said: “The strategies and measures taken during 2019 has helped the bank withstand the challenging economic conditions and record a satisfactory performance in Q1 2020. However, with the recent outbreak of COVID-19 which has disrupted economies across the world, we have to brace ourselves for greater impact on profitability.”