ECONOMYNEXT – Profits at Sri Lanka’s Pan Asia Bank grew 10 percent to 797 million rupees in the December 2020 quarter amid strict cost control, the lender said despite a fall in net interest income and higher provisions due to a Coronavirus pandemic.
Pan Asia Bank reported earnings of 1.80 rupees per share for the quarter. In the year to December 2020 it reported earnings of 4.63 rupees per share on total profits of 2.04 billion rupees which grew 17 percent.
Fee income fell seven percent to 406 million rupees while Fee expenses grew 11 percent to 19.6 million rupees resulting net fee income to fell by eight percent to 387.2 million rupees.
Operating expense fell 24percent to 922 million rupees in the December quarter.
Staff costs decreases by 11 percent to 484 million rupees in the quarter.
Pan Asia said its cost to income ratio fell to 46 percent from 50 percent with measures to control overheads and core banking performance.
Net interest income fell three percent to 1.9 billion rupees in the quarter, with interest income falling nine percent to 4.5 billion rupees and interest expense falling 14 percent to 2.5 billion rupees.
The provided 367 million rupees in loan loss provision during the quarter.
Customer loans grew 11 percent to 123 billion rupees in the 12 months to December.
The gross non-performing loan ratio grew to 6.73 percent in December from 6.31 a year earlier
Pan Asia bond portfolio grew to 43 billion rupees from 30.08 billion rupees a year earlier.
Gross assets grew 16 percent to 176 billion rupees during the year.
Net assets grew 16 percent to 15.3 billion.
Pan Asia its Tier II capital ratio grew to 13.24 percent in December from 12.87 percent a year earlier. (Colombo/Feb20/2021)