Pan Asia Bank 9-mth post tax profit rises to Rs. 2 b

Pan Asia Banking Corporation PLC has reported what it calls, “an impressive performance” for the nine months period ended 30th September 2021 with a Pre- Tax Profit of Rs. 2,718 million and a Post-Tax Profit of Rs. 2,008 million, with growth rates of 46 percent and 61 percent (over the previous year periods) respectively, while demonstrating the resilience amid challenging macroeconomic conditions.

The bank’s performance was characterised by strength and resilience despite the heightened uncertainty due to the impact of the COVID-19 pandemic, it said in a media release.

The bank’s Operating Profit before VAT on Financial Services reached Rs. 3,342 million, an increase of 42 percent reflecting the excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key profitability matrices which now rank among the industry bests.

The bank said it increased its provision buffers for loan losses during the nine months ‘sensibly’ taking into consideration the increased risks and uncertainties due to COVID- 19 pandemic through experience adjustments and management overlays.

Commenting on the financial performance, the bank’s MD/CEO, Nimal Tillekeratne said; “We are extremely proud and pleased to deliver such an excellent performance under the extreme conditions created by the COVID-19 pandemic. This performance has been hard- won on account of a proactive approach to business while leveraging on emerging opportunities in the market in a prudent manner. Despite the moratoriums and provisioning that had to be provided for, the bank has successfully recorded profitability while consolidating customer and investor confidence”.

The bank’s regulatory Gross Non- Performing Loan Ratio improved from 6.73 percent to 6.06 percent during the 9-month period amidst tough macroeconomic conditions whilst the bank’s Net NonPerforming Loan Ratio improved from 2.34 percent to 1.28 percent due to prudent provisioning.