Operating Profits up by 79% to post Rs. 771 Mn, owing to overall excellent core banking performance.
Profit Before Tax - Rs. 540 Mn, up by 72% and Profit after Tax - Rs. 324 Mn, up by 50%
Impairment Charges - 382 Mn, down by 37%
Total Assets increases by Rs 7.5 Bn to reach Rs. 216 Bn
The Bank maintains a Net Interest Margin of 3.87%
The Bank remains well capitalised and liquid.
Tier 1 Capital Ratio 14.45% (Regulatory Minimum - 8.50%)
Total Capital Ratio 16.38% (Regulatory Minimum - 12.50%)
Rupee LCR 326.63% (Regulatory Minimum - 100%)
All Currency LCR 314.62% (Regulatory Minimum - 100%)
Customer Deposit Base reaches Rs. 167 Bn, up by 3%
Pan Asia Banking Corporation PLC reflected a positive performance amidst a multitude of adversities emerging from challenging macro-economic conditions as the Bank reported its financial performance for 1Q2023, which showed judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality from sharp increase in interest rates. For the quarter ended 31st March 2023, the Bank reported a Pre-Tax Profit of Rs. 540 Mn, which reflects a 72% increase compared to 1Q2022. Pan Asia Bank is geared for a stronger future after delivering this superlative performance and is confident of strengthening its financial position over the coming months. The Sri Lankan economy has experienced positive signs of gradual economic recovery and stability in macro-economic factors compared to the preceding months with the appreciation of LKR against USD.
Impairment charges for 1Q2023 came down by 37% compared to the comparative period due to strong collection and recovery efforts.
The interest income for 1Q, 2023 rose by 88% due to increase in market lending rates and re-pricing effect of facilities in response to the market conditions. Further, the significant volume growth in Pawning and Short-Term Loans also led to the increase in loan related interest income.
Meanwhile, the interest expense for 1Q2023 rose significantly by 197% mainly due to a steep increase in deposit rates and re-pricing effect of deposits in response to the market conditions.
The increase in Personnel Expenses recorded is mainly due to increased allocation for staff bonuses in 1Q2022 compared to the comparative period and annual general salary increases. Taxes and Levies on Financial Services also moved upwards mainly due to increase in Operating Profits and the effect of the recently introduced Social Security Contribution Levy (SSCL). Income Tax Expense has increased by 120% due to increase in statutory income tax rate to 30% from 24%, and operating profits also increased.
Meanwhile, the Bank’s Post-Tax Profit increased by 50% to Rs. 324 Mn in 1Q2023 from Rs. 216 Mn in 1Q2022 due to the overall excellence.
The Bank reported a Net Interest Margin of 3.87% during 1Q2023. Meanwhile, the Bank reported a Return on Equity (ROE) of 6.33% and a Pre-Tax Return on Assets (ROA) of 1.03%.
Furthermore, the Bank’s Earnings Per Share (EPS) for 1Q2023 increased to Rs. 0.73 from Rs. 0.49 mainly due to increased trading gains from government securities, reduced exchange losses and impairment charges.The Bank’s Net Asset Value Per Share as of 31st March 2023 stood at Rs. 47.32 after an appreciation of 2%. The Total Assets of the Bank stood at Rs. 216 Bn as of 31st March 2023 after posting a growth of 4% during 1Q2023.
The Bank maintains all its Capital and Liquidity Ratios well above the regulatory minimum standards. The Bank’s Tier 1 Capital Ratio and Total Capital Ratio as of 31st March 2023 stood at 14.45% and 16.38% respectively. Further, the Bank’s Leverage Ratio stood at 7.87% as of 31st March 2023.
Commenting on the Bank’s performance, Naleen Edirisinghe, Director/ CEO of Pan Asia Bank said, “Our resounding performance in the 1Q2023 demonstrates that we are well on track to meeting our ambitious targets for the year. A growth of PAT over 50% in 1Q 2023 affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies. Despite difficult market conditions, Pan Asia Bank leveraged on its spirit of innovation and ‘can do’ spirit as one team to deliver this encouraging performance, which sets the stage for the rest of the year.”
Pan Asia Bank was ushered into Business Todays Top 40 business organizations ranking for 2021-2022 based on criteria such as portfolio, profits and risks taken, resilience, passion, and how well challenges are met. The Bank was also selected by LMD as one of the ‘Most Awarded Entities’ and top ‘Most Respected’ Entities in 2022. In addition, Pan Asia Bank was bestowed with Gold and Bronze awards at the 2022 Effie Awards in the Finance and Business Challenge Category (David vs Goliath) categories respectively.
Recording consistent growth year after year, Pan Asia Bank is strongly positioned as the ‘Truly Sri Lankan Bank’, marking an illustrious journey that has promoted financial security and fulfilled the aspirations of its customers while supporting the prosperity of the nation.