Sri Lanka’s Pan Asia Bank net up 197-pct with strong loan growth

ECONOMYNEXT – Profits at Sri Lanka’s Pan Asian Bank rose 197 percent to 300 million rupees in the September 2015 quarter from a year earlier, helped by sharply higher loan growth and other income, interim accounts show.

The bank posted earnings of 1.01 rupees per share for the quarter. In the nine months to September the bank posted earnings of 2.45 rupees per share, on total profits of 750 million rupees, which rose 171 percent.

Fee income rose 26 percent to 189 million rupees. Other income which included exchange gains rose 161 percent to 217 million rupees. Loans grew 32 percent to 79 billion rupees during the nine months to September.

Pan Asian Bank made loan loss provisions of 251 million during the quarter up from 74 million rupees a year earlier. Gross non-performing loans fell to 5.36 percent from 5.73 percent with strong loan growth. Financial investments held to maturity also rose 261 percent to 9.2 billion rupees.

With a looming balance of payments crisis and a wide budget deficit, investments in long term government debt is considered risky this year. Customer deposits rose 19 percent to 77.4 billion rupees during the period.

The bank also raised 10 million US dollars (1.43 billion rupees) from Global Climate Partnership Fund, a ‘green’ financing facility. Net assets grew 16 percent to 5.4 billion rupees and gross assets grew 29 percent to 103 billion rupees, topping the 100 billion rupee mark.

The bank’s core capital adequacy ratio fell to 7.14 percent in September from 8.97 percent in December amid strong loan growth but remains above the regulatory minimum. Total capital adequacy was also at 11.66 percent, though down from 14.19 percent.

Latest Comments

Your email address will not be published. Required fields are marked *