ECONOMYNEXT – Net profits at Sri Lanka’s Pan Asia Bank grew 89 percent to 651.8 million rupees in the September 2021 quarter helped by higher net interes income and net fee and commission income, interim reports showed.
Pan Asia Bank reported earnings of 1.47 rupees per share for the quarter. In the nine months to September it reported earnings of 4.51 rupees per share on total profits of two billion rupees which grew 61 percent.
Fee and Commission income gained 30 percent to 457 million rupees while Fee expenses fell 65 percent to 6.9 million rupees resulting net fee income to increase by 35 percent to 333.5 million rupees.
Operating expense gained 2 percent to 1.1 billion rupees in the September quarter.
“This feat was achieved even after setting aside sizable provision buffers for the probable deterioration in credit quality due to COVID-19 pandemic” the bank said.
Staff costs increases by 10 percent to 554.9 million rupees in the quarter.
Pan Asia said its cost to income ratio improved from 45.66 percent to 42.19 percent within the 9 months’ period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain the increase in overhead costs
Net interest income increased by 35 percent to 2.3 billion rupees in the quarter, with interest income remaining at 4.5 billion rupees and interest expense falling 22 percent to 2.2 billion rupees.
The bank provided 567.1 million rupees in loan loss provision during the quarter.
“The Bank increased its provision buffers for loan losses during the 9 months’ period sensibly taking into consideration of increased risks and uncertainties due to COVID-19 pandemic through experience adjustments and management overlays” the bank said.
“As a result, total impairment charge for the nine months’ period ended September 30, 2021 increased by 17 percent.”
Customer loans grew 11 percent to 134 billion rupees in the nine months to September.
The gross non-performing loan ratio fell to 6.06 percent in September from 6.73 from December 2020.
Pan Asia bond portfolio fell to 40 billion rupees from 43.5 billion rupees from December 2020.
In the September quarter loan loss provisions were 554 million rupees, up 02 percent.
Gross assets grew seven percent to 188 billion rupees during the nine months to September.
Net assets grew 13 percent to 17.5 billion rupees.
Pan Asia its Tier I capital ratio fell to 12.36 percent in September from 13.24 percent in December 2020 remaining below the regulatory minimum of 12.5 percent.
And the total Capital ratio was 14.63 percent down from 15.74 percent. (Colombo/Nov 01/2021)