Pan Asia Bank’s growth moderates on subdued economy | Sunday Observer

Pan Asia Bank’s growth moderates on subdued economy

* Debt Repayment Levy hurts bottom-line

Pan Asia Banking Corporation PLC managed to maintain a steady performance during the first quarter ended March 31, 2019 (1Q ’19) with the top-line rising 16 percent and the bank managing to maintain margins north of 4.0%, ahead of the industry.

The bank recorded a net interest income of Rs.1.55 billion for the three months, up 16 percent from the corresponding period in 2018 as the growth in interest income surpassed the growth in interest expenses.

The bank’s net interest margin was 4.12%, higher than the industry average albeit slightly dented from December 2018.

The bank maintained higher margins along with a respectable level of top-line due to its rigorous efforts to maximise the return from its asset portfolio. The management re-priced its asset and liability books along with the market interest rates and re-calibrated its portfolio of assets to maximise the return.

“What we witnessed during the past quarter was a culmination of challenges from across all spheres resulting in slowing down of growth in the sector which could continue even in the current quarter,” said Pan Asia Bank’s Director/CEO Nimal Tillekeratne.

“Even in these challenging circumstances we were able to off-set some of the adverse impact from the vagaries of the economy due to continuous portfolio return maximisation”, he added.

Tillekeratne also said the bank was ratcheting up its capital and building its resource pool to accelerate the growth as the bank has lot to do in catching up work.

During the three months, the bank reported a total operating income of Rs. 2.1 billion compared to Rs. 1.99 billion in the corresponding period last year. The bank reported Rs. 272.2 million in earnings during the January-March quarter compared to Rs. 312.8 million in the corresponding quarter in 2018 as the impact from the debt repayment levy took toll on the after tax profits.