Pan Asia Bank’s operating profit rises by 36% in first 9 mths 

Pan Asia Banking Corporation PLC has reported a ‘robust performance’ amidst challenging macroeconomic conditions resulting in an operating profit before all taxes of Rs.780.67 million for nine months ending September 2019, a growth of 36 per cent from the previous quarter. 

For the quarter ending in September, the bank reported post tax profit of Rs.269.9 million, up 4 per cent from the same period last year, despite higher taxes including debt repayment levy.

“The results is a testament to how the bank has been steadily gaining momentum in the growth in its lending portfolio in the third quarter after it reported shrinking growth during the first half of the year,” the bank said in a media statement. 

Pan Asia Bank’s Return on Equity and Return on Assets remain among the highest in the industry with 11.60 per cent and 1.10 per cent respectively by the end of September 2019.

The bank said the overall Sri Lankan banking sector earnings slowed during 2019 due to higher non-performing loans resulting from higher interest rates which hitherto prevailed and the weak economic condition, slowing down the overall growth in the sector assets.

“Pan Asia Bank too had its fair share of the sector weaknesses but yet again emerged unscathed during the most recent quarter with higher earnings and setting stage for growth,” said Nimal Tillekeratne, Pan Asia Bank’s Director/CEO in the statement. 

“As most of our challenges are now behind us, I believe the prevailing low interest rates and the expected policy and political stability would provide the much needed tailwind for the industry to march ahead with much vigour,” he said.
The bank managed to control the provisions made for possible bad debts during first nine months, particularly individual impairment charges falling to Rs. 508.26 million from Rs. 746.13 million during the same period a year ago.