Amãna Bank assets crosses Rs. 100 mn with over Rs. 1 bn operating profit | Daily News

Amãna Bank assets crosses Rs. 100 mn with over Rs. 1 bn operating profit

Chairman Asgi Akbarally-CEO Mohamed Azmeer
Chairman Asgi Akbarally-CEO Mohamed Azmeer

Amãna Bank crossed the Rs 100 billion mark in total assets as at YE2020, a milestone bearing evidence to its accelerated growth, which comes in a context where the Bank has completed only 9 years in banking operations.

In the face of the Covid-19 pandemic related challenges, the Bank has showcased strong resilience especially during the first 3 quarters of the year and has bounced back strongly in Q4 with a remarkable 51% growth in pre-tax profit recording Rs 372.1 million in comparison to Rs 246.2 million in Q4 2019.Post-tax profit for the same period stood at Rs 213.3 million. In comparison to Q3 2020, the Bank’s pre-tax and post-tax profits grew significantly by 168% and 167% respectively in Q4 2020. As a result of its resurgent Q4 performance, the Bank,for the 12months of 2020, reported Rs 761.4 million as profit before tax and Rs 463.7million as profit after tax. It is noteworthy that the profit after tax of 2020 is higher than the Rs 460.9 million reported in 2019. Maintaining a healthy financing margin of3.7%, the Bank’s Net Financing Income grew 9% YoY to close at Rs 3.45 billion,while achieving Rs 1.13 billion during Q4 alone, demonstrating a growth of 53%against Q4 2019. Despite import control having an adverse impact on trade related fee income, the Bank reported a Net Operating Income of Rs 3.72billion for 2020. Having successfully curtailed operating expenses, as a result of the continued focus on cost containment, the Bank recorded an Operating Profit Before VAT, NBT and DRL of Rs 1.15 billion for2020.

The Bank’s aggregate tax contribution of Rs 691 million accounted for 60%of the Bank’s Operating Profit before all taxes. Chairman of Amãna Bank Asgi Akbarally said, “Despite the turbulent economic environment that we have all come to associate in the year 2020, Amãna Bank was able to record healthy results showcasing strong resilience, thanks to the underlying strengths of our business model, balance sheet and strong capital position. Despite the pandemic our efforts tothe community did not seize.” Chief Executive Officer Mohamed Azmeer said, “I believe the pandemic presented an opportunity to demonstrate Amana Bank’s true purpose to support customers, businesses, communities and the nation at all times.”

Despite the backdrop of challenging market and economic conditions, the Bank continued to maintain a strong growth momentum in customer deposits closing the year with a portfolio of Rs 83.6 billion which reflected a significant YoY growth of 17%. As a result of its healthy financial profile, the Bank continued its dividend journey consistently even through2020, by paying out its 3rd consecutive dividend, showing gratitude for the confidence of the Bank’s shareholders.

Despite subdued demand for credit, the Bank recorded an 8% YoY growth in customer advances, surpassing the country’s private sector credit growth in 2020, to close the year at Rs 62.6 billion. Amid adverse market conditions, the Bank’s continued focus on prudent portfolio management and timely customer engagement resulted in containing NPA well below the industry averages with Net NPA and Gross NPA ratios recording 1.4% and 4.0%respectively.