brand logo

PABC reports Rs. 506m profit in 2Q, sets profit record in 1H

10 Aug 2018

Pan Asia Banking Corporation Plc has reported a profit of Rs. 506.8 million on a net interest income of Rs. 1.5 billion for the quarter ended 30 June 2018 (2Q’18), compared to Rs. 263.5 million profit and Rs. 1.2 billion net interest income reported in the same quarter last year. This has helped the bank record its best ever profit in a first half, in the first half of 2018, with a profit after tax of Rs. 819.6 million, up by a strong 33% from the same period in 2017. The net interest income rose by 18% on a year-on-year (yoy) basis to Rs. 2.8 billion supported by better margins recorded amid the rising cost of funds. The net interest margin increased to 3.92% during this period from 3.61% in December 2017 as the bank continuously reviewed the pricing of its asset and liability portfolio and managed them efficiently. The bank gave Rs. 11.5 billion in new loans during the period which translates to a robust growth of 10% in the loan book given the challenging market conditions that prevailed during the period. This propelled the bank’s asset base to slightly over Rs. 150 billion by the end of June, achieving yet another key milestone. “We recorded commendable growth in our loan book during the first half of 2018 amid the many headwinds we faced during this period. I consider this achievement noteworthy because we recorded it amid a moderation in sector loan growth and rising non-performing loans,” said Pan Asia Bank’s Director/Chief Executive Officer Nimal Tillekeratne. Pan Asia Bank managed to reduce its net non-performing ratio to 2.93% by the end of June from 3.05% in December 2017, while the gross non-performing loan ratio increased to 4.51%, slightly up from 4.36%. The solid top and bottom-line performance of the bank was somewhat held back by the increase in the loan loss provisions as the bank had to provide Rs. 669 million as impairments during the six months, up from Rs. 343 million in the corresponding period last year. Meanwhile, by the end of the first half, the bank strengthened its capital profile through internally generated capital while maintaining the desired level of growth and currently stays above the minimum regulatory requirements stipulated by BASEL III. By the end of 30 June, the bank’s tier I and tier II capital ratios stood at 11.24% and 12.91% respectively compared to the regulatory minimums of 7.875% and 11.875% for each. The bank increased its deposit base by Rs. 7 billion, anchoring much of the growth in the loans. Out of these total deposits, current and savings account deposits – a key measure of the bank’s performance in low-cost funds - rose to 19.2% from just under 18% in December 2017, providing a much-needed boost to the bank’s margins.

Kapruka

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


More News..