Amana Bank records 68% growth in PBT and 82% growth in PAT

Amana Bank mid-year performance in 2024 has outpaced its 2023 first half, with significant growth across multiple key metrics including profitability, advances, deposits, and total assets while also maintaining key health ratios such as CASA and Stage 3 Impairment ratios beyond industry averages.

During the first half of 2024 the bank reported a Profit Before Tax (PBT) of Rs. 1.35 billion, reflecting a 68 percent YoY growth while the bank’s Profit After Tax amounted to Rs. 763.4 million, a 82 percent increase from the Rs. 419.6 million reported last year. In 2Q alone, PBT and PAT surged by 63 percent and 72 percent YoY, amounting to Rs. 616.9 million and Rs. 341.1 million respectively. 

By maintaining a healthy financing margin of 4.3 percent, Net Financing Income increased by 5 percent YoY, reaching Rs. 3.6 billion by 30 June 2023, with a notable 9 percent growth in 2Q alone.

During 1H, the bank’s Net Fee and Commission income rose by 9 percent to Rs. 519.0 million, while Total Operating Income marginally declined by 1 percent to Rs. 4.4 billion, mainly owing to a reduction in Net Trading Income due to continuous decline in forex premiums. 

After accounting for reduced impairment charges owing to improved business conditions and better management of non-performing advances, the bank’s Net Operating Income improved by 34 percent to reach Rs. 4.1 billion, up from Rs. 3.0 billion in 1H 2023. 

Despite increase in Operating Expenses, the bank continued to maintain a healthy mid-year cost to income ratio of 51 percent, resulting in a 48 percent YoY growth in Operating Profit before VAT on Financial Services to post Rs. 1.8 billion. The bank’s aggregate tax contribution of approx. Rs. 1.1 billion accounted for a significant 58 percent of the bank’s Operating Profit before all taxes. The Total Comprehensive Income for the period was Rs. 755.3 million, reflecting a robust 95 percent YoY growth.Despite competition for funding in the market and the consistently declining deposit rates, the bank saw increased acceptance of its people-friendly banking model. This led to a commendable 10 percent growth in Customer Deposits, closing 1H 2024 with a portfolio of Rs. 146.3 billion while maintaining a healthy CASA ratio of 40 percent.

Moreover, driven by the continued success of its development-focused banking approach, the bank’s Customer Advances also grew by 10 percent to close at Rs. 98.2 billion, while maintaining an industry low Stage 3 Impaired Financing Ratio of 1.7 percent. The bank closed the first half with Total Assets of Rs. 173.6 billion.

As at 30 June 2024, Amana Bank’s Net Asset Value per share stood at Rs. 4.08. Consequent to the recent 10 to 1 consolidation of shares carried out in July 2024, this effectively translates to over Rs. 40 per share. 

Given the robust performance during the six months, the bank’s ROE and ROA grew to 7.0 percent and 1.6 percent respectively compared to 5.8 percent and 1.1 percent respectively to the corresponding period of 2023. 
at 30 June 2024, Amana Bank’s Common Equity Tier 1 and Total Capital ratios stood at 15.4 percent and 18.1 percent respectively, well above the regulatory minimum requirement of 7 percent and 12.5 percent.