Amana Bank PLC recorded a profit-after-tax (PAT) growth of 28% to reach Rs. 1.8 billion from Rs. 1.4 billion posted in 2023.
Reflecting a healthy 21% growth, profit-before-tax for the same period grew from Rs. 2.3 billion to close at Rs. 2.8 billion.
This strong bottom-line performance was achieved despite the impact of declining market rates.
The bank maintained a healthy financing margin of 4%, resulting in the bank’s net financing income improving by 6% to reach Rs. 6.9 billion from Rs. 6.5 billion a year ago.
Driven by trade volumes generated from our valued SME and Corporate customers as well as increased digital transactions and other value-added services, the bank’s net fee and commission income grew by 16% to cross the Rs. 1 billion milestone, to close at Rs. 1.1 billion.
In the backdrop of excess US dollar liquidity in the market and the resultant drop in premium, the bank reported a trading income of Rs. 0.7 billion.
The bank’s impairment charges reduced by 86% or from Rs. 2.1 billion to Rs. 0.3 billion, resulting in the bank’s net operating income increasing by 18% or Rs. 1.3 billion to reach Rs. 8.4 billion.
Moreover, the bank maintained a cost to income ratio of 53%, resulting in an 18% increase in operating profit before VAT on financial services and social security levy to Rs. 3.8 billion from Rs. 3.2 billion in 2023.
The bank’s aggregate tax contribution of Rs. 2 billion accounted for a significant 53% of the bank’s operating profit before all taxes.
Amana Bank PLC Chairperson Asgi Akbarally said: “Against the backdrop of an improving operating environment and economic conditions, Amana Bank has once again delivered a strong performance, demonstrating the resilience of our unique banking model.”
Also sharing his views Managing Director/CEO Mohamed Azmeer said: “With improving economic conditions, Amana Bank has been able to accelerate its growth momentum, surpassing key milestones and strengthening our market position. Our performance reflects the bank’s focus on customer-centricity, prudent risk management, and operational excellence.”