Amãna Bank crossed the Rs. 100 billion mark in total assets as at YE2020, bearing evidence to its accelerated growth, which comes in a context where the Bank has completed only nine years in banking operations.
In the face of the Covid-19 pandemic related challenges, the Bank has showcased strong resilience especially during the first three quarters of the year and has bounced back in Q4 with 51% growth in pre-tax profit recording Rs. 372.1 million in comparison to Rs. 246.2 million in Q4 2019. Post-tax profit stood at Rs. 213.3 million.
In comparison to Q3 2020, the Bank’s pre-tax and post-tax profits grew significantly by 168% and 167% respectively in Q4 2020. As a result of its resurgent Q4 performance, the Bank,for the 12 months of 2020, reported Rs. 761.4 million as profit before tax and Rs. 463.7million as profit after tax. It is noteworthy that the profit after tax of 2020 is higher than the Rs. 460.9 million reported in 2019. Maintaining a healthy financing margin of 3.7%, the Bank’s Net Financing Income grew 9% YoY to close at Rs. 3.45 billion, while achieving Rs. 1.13 billion during Q4 alone, demonstrating a growth of 53% against Q4 2019. Despite import control having an adverse impact on trade related fee income, the Bank reported a Net Operating Income of Rs. 3.72 billion for 2020.
Having curtailed operating expenses, as a result of the continued focus on cost containment, the Bank recorded an Operating Profit Before VAT, NBT and DRL of Rs. 1.15 billion for 2020. The Bank’s aggregate tax contribution of LKR691 million accounted for 60% of the Bank’s Operating Profit before all taxes. The Bank continued to maintain a strong growth momentum in customer deposits closing the year with a portfolio of Rs. 83.6 billion which reflected a significant YoY growth of 17%. This growth was achieved while also improving the Bank’s CASA ratio from 39% in 2019 to 45% by end 2020, a testament to the strong emphasis the Bank has placed throughout the year to promote its CASA proposition.
The Bank recorded an 8% YoY growth in customer advances, surpassing the country’s private sector credit growth in 2020, to close the year at Rs. 62.6 billion.
The Bank continued focus on prudent portfolio management and timely customer engagement resulted in containing NPA well industry average with Net NPA and Gross NPA ratios recording 1.4% and 4.0%.
Owing to the steady balance sheet growth and effective implementation of the strategic plan, the Bank’s total assets grew by 16% YoY to close at Rs. 100.2 billion.