Pan Asia Bank records Rs. 726.8 m PAT in Q4 | Sunday Observer

Pan Asia Bank records Rs. 726.8 m PAT in Q4

Chairman G. A. R. D. Prasanna-CEO Nimal Tillekeratne
Chairman G. A. R. D. Prasanna-CEO Nimal Tillekeratne

Pan Asia Banking Corporation PLC ended 2019 Q4 with its best financial results ever, to report a Post Tax Profit of Rs. 726.84 million during the final quarter, recording a growth of 58%.

The Bank’s operating profit before all taxes for the quarter increased by 78%. The Bank closed the FY 2019 with an Operating Profit before all taxes of Rs. 3,402.68 million, up by 31%.

The steeper increase in the taxes and levies on financial services of 58%, which include the Debt Repayment Levy (DRL) undermined the Bank’s bottom-line to a great extent. This performance translated in to a Post Tax Profit of Rs.1,750.56 million in 2019, which is a 14% increase despite the sharp increase in taxes, including DRL. The Earnings per Share for 2019 rose to Rs. 3.96 cents from Rs. 3.48 share in the corresponding period.

The Bank increased its Return on Equity and Return on Assets (pre-tax) ratios to 14.5% and 1.52% in 2019 which now rank among the highest in the industry. These ratios stood at 13.73% and 1.28% at the end of 2018. The Bank’s Net Asset Value per Share as at December 31, 2019 increased to Rs. 30.12, from Rs. 25.41, a year before.

The Bank maintained a healthy net interest margin of 4.36%.

The Bank’s gross loans and advances book witnessed a modest growth due to the slowdown in private sector credit growth.

The Bank’s gross loans and advances grew by 3.53% to reach Rs. 117.50 billion as at December 31, 2019. The Bank’s deposit base grew by Rs. 3.92 bn to reach Rs. 122.54 bn as at December 31, 2019.

Pan Asia Bank ended the financial year with a gross non performing advances ratio of 6.31%, witnessing only a modest increase of 87 basis points since December 2018. The Bank’s net non performing advance ratio improved to 2.82% at the end of 2019.

“Pan Asia Bank too had its fair share of the sector weaknesses, but yet again proved its mettle especially during the second half with higher earnings and setting the stage for growth,” said Pan Asia Bank’s Director/CEO, Nimal R. Tillekeratne.

 

Comments