Pan Asia Banking Corporation PLC reporting its financial performance during 1Q 2024, posted a Pre-tax Profit of Rs. 796 Mn for the quarter that ended March 31, 2024, which is a 47% increase compared to the corresponding quarter last year, supported by improved net interest income, net fee & commission income, and other operating income. The Bank reported a Profit After Tax (PAT) of Rs. 363 Mn in 1Q 2024 which is a 12% increase compared to the corresponding quarter last year. The Bank reported an Earnings Per Share (EPS) of Rs. 0.82 for 1Q 2024.
The Bank reported a Net Interest Margin (NIM) of 4.91% for 1Q 2024. Meanwhile, the Bank reported a Return on Equity (ROE) of 6.42% and a Pre-Tax Return on Assets (ROA) of 1.36% for the quarter under review. Meanwhile, the Bank’s Net Asset Value Per Share as of March 31, 2024, stood at Rs. 51.63.
The Bank’s net fee and commission income has increased by 17% during 1Q 2024 mainly due to the increase in fee income generated from loans and advances due to increased demand for credit which resulted from the prevailing low-interest rate regime and other conducive macroeconomic factors in the country. The other operating income has increased significantly by 293% due to the prudently managed FX Positions with the appreciation of LKR against USD from Rs. 324 to Rs. 300 during 1Q 2024.
The increase in personnel expenses is mainly driven by increased staff salaries, bonuses, and allowances.
The Bank maintains all its capital and liquidity ratios well above the regulatory minimum standards. The Bank’s Tier 1 Capital Ratio and Total Capital Ratio as of 31st March 2024 stood at 15.11% and 17.09% respectively. Further, the Bank’s Leverage Ratio stood at 7.65% as of 31st March 2024. The Total Bank Level Statutory Liquid Assets Ratio (SLAR) as of 31st March 2024 stood at 35.75%. Pan Asia Bank Director and CEO Naleen Edirisinghe, said, “Our resounding performance for the 1Q 2024 demonstrates that we are well on track to meet our ambitious targets post-economic crisis. A growth in PBT of nearly 50% for 1Q 2024 affirms the efficacy of our strategy which will be accelerated to generate greater earnings from core banking while infusing operational efficiencies. Pan Asia Bank leveraged its spirit of innovation backed by digital enhancements and can-do spirit as one team to deliver this encouraging performance which sets the stage for the coming year”.
