Amãna Bank’s 3Q17 profit before tax triples

Having recently doubled its capital to over Rs.10 billion, Amãna Bank reinforced the confidence of its shareholders by tripling its 3Q17 profit before tax (PBT) to reach Rs.186.1 million as against Rs.62.9 million of 3Q16.

For the nine months ending September 30, 2017, the bank recorded a PBT of Rs.397.0 million showcasing a significant year-on-year (YoY) growth of 181 percent from Rs.140.9 million achieved in the corresponding period of 2016.

Further, the profit after tax for the same period grew by 163 percent YoY to reach Rs.266.8 million from Rs.101.4 million achieved a year ago. Despite doubling the bank’s number of shares as a result of the rights issue in July, the bank was successful in recording a 119 percent YoY growth in its earnings per share (EPS) whilst the net assets per share stood at Rs.4.56 against the market price of Rs.3.80 as at September 30, 2017.

The bank continued to display strong momentum in its top line performance with financing income crossing the Rs.4 billion mark to achieve a YoY growth of 38 percent, which contributed towards the bank recording a net financing income of Rs.1.95 billion reflecting a 40 percent YoY growth.

The bank’s net fee and commission income recorded an 18.5 percent growth to reach Rs.170.8 million. The net operating income of the bank after impairment provisions reached Rs.2.21 billion reflecting a healthy growth of 26.6 percent from the corresponding period of 2016. 

The increase in total operating expenses was maintained within 3.6 percent when compared with 2016. As a result the bank posted an operating profit before VAT and NBT of Rs.678.4 million, which was an increase of 154 percent from Rs.266.7 million recorded an year ago.  

Having started the year with Rs.54.3 billion in total assets, the bank’s asset base driven by the recent rights issue grew impressively to close the quarter at Rs.63.6 billion. 

Customer advances and customer deposits showcased noteworthy improvements closing at Rs.41.2 billion and Rs.49.7 billion, respectively. Amãna Bank’s financing margin improved to 4.0 percent from 3.6 percent recorded at end-2016. 

In addition, the bank continued to maintain a healthy gross non performing advances ratio of 1.56 percent well below the industry average reflecting the bank’s focus on portfolio quality. Net non-performing advances ratio at the close of 3Q stood at 0.70 percent.

In addition to the capital infusion of Rs.4.75 billion through the rights issue, the bank’s reserves showcased a further accumulation of Rs.865.9 million mainly by increasing its revaluation reserve, as 
the shareholders’ funds closed at Rs.11.4 billion.

Commenting on the bank’s performance to date, Chief Executive Officer Mohamed Azmeer stated, “I am pleased to witness the bank’s successful performance during the first three quarters of 2017, growing on the momentum gathered in the beginning of the year for which I am thankful to the shareholders, customers and staff. 

This promising upward trend is owing to the revenue growth achieved by the bank demonstrating the unique value proposition of its model whilst gaining widespread acceptance. The avenues of growth, reflects our focus of being a retail and SME bank as well as adapting to new technological innovations in line with the bank’s five-year strategic plan. God willing, I am confident that this momentum will continue during the last quarter.”