ECONOMYNEXT – Profits at Sri Lanka’s Pan Asia Banking Corporation (PABC) shrunk 49 percent to 981 million rupees in the December 2025 quarter, the Bank’s quarterly earnings report showed.
For the full year ended on Dec. 31, the Bank posted a profit of 4 billion rupees, which was 3 percent lower than of 2024
It showed the fall in the profit was due to an unusual gain after derecognition of losses from Sri Lanka International Sovereign Bonds last year after the country’s debt restructuring.
“2025 was a landmark year for Pan Asia Bank, marked by our strongest underlying performance to date and a meaningful strengthening of the Bank’s financial foundation,” Chairman Aravinda Perera said referring to the strongest year of underlying profitability in its 30-year history.
“As we celebrate three decades of progress, the priorities of the Board remain clear ensuring disciplined governance, safeguarding resilience, and guiding the institution toward sustainable, long-term value creation.”
Pan Asia Bank reported earnings of 2.22 rupees per share for the quarter. In the year to December 2025 it reported earnings of 9.05 rupees per share, 3 percent lower than the last year.
Fee income in the quarter rose 35 percent to 691 million rupees while fee expenses grew at a 60 percent to 29.2 million rupees, resulting in net fee income going up 34 percent to 662 million rupees.
Director/CEO Naleen Edirisinghe said 2025 marked a transformative year for PABC with the Bank delivering the strongest balance sheet expansion in its 30 year history.
Total assets grew by 17 percent to 308 billion rupees while the loan portfolio of the Bank expanded by 35 percent to 217.12 billion rupees, which the Bank said was its highest annual credit growth to date.
The customer deposits exceeded 231 billion rupees.
Total operating expense fell 2 percent to 1.99 billion rupees in the December quarter.
This included a 13 percent decrease in personnel expenses to 845 million rupees in the quarter.
Pan Asia said the year’s cost to income ratio fell to 48.94 percent from 52.68 percent driven by “strong income growth and disciplined expense management.”
Net interest income fell 4 percent to 3.22 billion rupees in the quarter, with interest income up 5 percent to 8 billion rupees while interest expense rose faster at 11 percent to 4.83 billion rupees. (Colombo/February 18/2026)