Sri Lanka Islamic bank June quarter net profit Rs47.5mn

ECONOMYNEXT – Amãna Bank, a Sri Lankan bank operating on the non-interest based Islamic banking model, made a net profit of 47.5 million rupees in the June 2015 quarter against a loss of 85.6 million rupees a year ago.

Financing income rose 15 percent to 676 million rupees while expenses rose 7.3 percent to 330 million rupees resulting in net financing income rising 24 percent to 346 million rupees during the period.

Earnings per share of Amãna Bank were four cents in the quarter, a stock exchange filing said.

Net fee and commission income rose 16 percent to 38 million rupees. Amãna Bank’s total assets were up 15 percent to 40 billion rupees as at 30 June 2015 from 31 December 2014 while total deposits rose 13 percent to 33 billion rupees.

Amãna Bank said in a statement it achieved an “impressive acceleration in profitability” during the June 2015 as profit more than doubled from the net profit 23 million rupees in the March 2015 quarter.

As a result, the bank’s profit for the first half of 2015 was 70.6 million rupees, compared to a loss after tax of 134.9 million rupees in the corresponding period of 2014.

“The bank continued to maintain a quality advance portfolio through effective credit risk management policies and procedures which resulted in a low Gross Non Performing Advances Ratio of 1.38 percent, well below the industry average,” it said. 

Amãna Bank’s main shareholders include Bank Islam Malaysia Berhad, AB Bank in Bangladesh and The Islamic Development Bank based in Saudi Arabia.  (Colombo/August 12 2015)