Pan Asia Bank posts steady performance during FY 2023

•  Profit before tax increases by 258% amidst continuing external challenges

Pan Asia Banking Corporation PLC reported a pre-tax profit of Rs.2,328 million for the year ended on December 31, 2023, which is a 258 percent increase compared to the corresponding period of last year, supported by the improved net interest income, increased trading gains from government securities and reduced exchange losses. 
The bank increased the impairment provision buffers held regarding investments in International Sovereign Bonds of the government of Sri Lanka further during 2023, with the expectation of possible adverse outcomes of the on-going government External Debt Restructuring programme. The bank recognised an impairment charge of nearly Rs.2 billion regarding International Sovereign Bonds during 2023.

The interest income for the year 2023 rose by 39 percent, due to the high interest rates that prevailed during the period under review compared to the corresponding period of last year and the repricing effect of facilities in response to the market conditions. 
Further, the growth in interest income was supported by the increased interest income from the rupee-denominated securities of the government of Sri Lanka (Treasury bills and bonds). The net interest income increased by 9 percent in 2023 compared to last year. 
The bank reported a profit after tax (PAT) of Rs.1,855 million for the year 2023, having dropped by 7 percent compared 2022, since the prior year PAT was positively impacted by a one-off, sizeable, deferred tax reversal, although the bank’s operating profitability marked a threefold figure rise during 2023. 

The bank reported earnings per share of Rs.4.19 for the year 2023. Further, the board of directors has proposed a first and final cash dividend of Rs.0.25 per share. The bank reported a net interest margin of 4.67 percent for the year 2023, having fallen marginally. Meanwhile, the bank reported a return on equity of 8.62 percent and a pre-tax return on assets of 1.06 percent for the year under review.  Meanwhile, the bank’s net asset value per share as of December 31, 2023 stood at Rs.51.06, after an appreciation of 10 percent.
The bank’s total assets experienced an increase of 12 percent. In the meantime, the bank’s total customer deposits recorded a growth of 8 percent to reach Rs.175 billion, as of December 31, 2023.