Amana Bank records best-ever performance in 2025 as the Islamic lender posted record profitability, accelerated balance sheet growth and strengthened capital buffers, marking a defining milestone in its 15-year corporate journey.
Amana Bank records best-ever performance in 2025 with record profits
The year 2025 will stand out as a transformational chapter for Amana Bank, with Profit Before Tax (PBT) surging 47% year-on-year to Rs. 4.1 billion and Profit After Tax (PAT) climbing 40% to Rs. 2.4 billion—the highest earnings since its inception in 2011. Operating Profit Before All Taxes increased 45% to Rs. 5.5 billion, reflecting disciplined cost management and expanding core banking income streams.
Notably, the bank contributed Rs. 3 billion in aggregate taxes, equivalent to 55% of its Operating Profit Before All Taxes, underscoring its fiscal contribution during a period of broader Sri Lanka banking sector recovery. The strong bottom-line momentum was driven by robust top-line expansion, with Net Financing Income growing 21% to Rs. 8.3 billion on the back of a healthy 4.3% financing margin. Net Fee and Commission Income advanced 27% to Rs. 1.4 billion, supporting a 16% rise in Total Operating Income to Rs. 10.1 billion and a 27% jump in Net Operating Income to Rs. 10.7 billion.
Operational efficiency improved further, as the Cost-to-Income Ratio narrowed to 51.8% from 53% in 2024, reflecting tighter cost containment and productivity gains. Total Comprehensive Income reached Rs. 2.9 billion, marking a 66% year-on-year increase and reinforcing the sustainability of earnings quality.
Operating within a gradually stabilising macroeconomic environment, the bank intensified its focus on SMEs—considered a backbone of domestic economic activity. Customer advances expanded by 36%, or Rs. 39.6 billion, lifting total advances to Rs. 150.9 billion. Advances now account for 74% of total assets, positioning the bank among industry leaders in channeling financing to the real economy. This growth trajectory was achieved while maintaining one of the lowest Stage 3 impaired financing ratios in the industry at 1.2%, a reflection of prudent underwriting standards and disciplined risk governance.
Deposit mobilisation remained strong, increasing by Rs. 18 billion to Rs. 172 billion, while maintaining an industry-leading CASA ratio of 45%. Total assets grew 12% to Rs. 204.3 billion, illustrating balanced asset-liability expansion without compromising liquidity.
Profitability metrics also reached new highs. Return on Equity (ROE) improved to 10.4%, entering double-digit territory for the first time, compared to 8.0% in 2024. Return on Assets rose to 2.1% from 1.6%, indicating enhanced asset utilisation efficiency. Capital buffers remained well above regulatory thresholds, with the Common Equity Tier 1 Ratio at 13.0% and the Total Capital Ratio at 14.7%, comfortably exceeding minimum requirements. Liquidity metrics were equally robust, with Rupee and All Currency Liquidity Coverage Ratios at 330.3% and 231.5%, respectively, and a Net Stable Funding Ratio of 142.5%—all substantially above the 100% regulatory benchmark.
Beyond financial metrics, Amana Bank records best-ever performance in 2025 also reflects international recognition. The bank was ranked among the Top 50 Strongest Islamic Banks globally by The Asian Banker, reinforcing its credibility within the global Islamic finance ecosystem. Additional accolades included “The Most Impactful ICD Investee Company” at the IsDB Private Sector Forum Awards and “Best Bank in Sri Lanka” at the ICC Emerging Asia Banking Awards adjudicated by PwC. The bank also secured the “Bank of the Decade” title at the Islamic Finance Forum of South Asia Awards 2025.
Investment-grade credentials were reaffirmed with a BBB-(lka) Stable rating from Fitch Ratings and a BBB+ Stable rating from Lanka Rating Agency. Shareholder value creation remained central to strategy, with the declaration of an eighth successive interim dividend of Rs. 1.30 per share, translating into a 4.3% dividend yield and a 29% payout ratio. The share price appreciated over 20% year-on-year to close at Rs. 30, reflecting market confidence in sustained earnings momentum.
Chairman Asgi Akbarally described 2025 as a defining year, citing not only the Rs. 4 billion PBT milestone but also the maturity of the bank’s governance and business model. Managing Director and CEO Mohamed Azmeer attributed the performance to strengthened market positioning, improved customer experience, disciplined risk management, and operational excellence, adding that the bank’s people-friendly, development-focused model continues to differentiate it within the competitive landscape of Islamic finance Sri Lanka.
Corporate governance depth was further strengthened with the appointment of Dr. Aishath Muneeza as Independent Non-Executive Director. A globally recognised Islamic finance expert and Associate Dean at INCEIF University in Malaysia, she brings extensive Shariah advisory and regulatory expertise, having served in senior roles across the Maldives’ financial ecosystem. Her appointment signals a continued emphasis on governance sophistication and cross-border knowledge integration.
As Amana Bank records best-ever performance in 2025, the institution enters its 15th year with reinforced capital resilience, improving profitability ratios, and international recognition—positioning it to capture growth opportunities while maintaining financial prudence. In a banking environment increasingly defined by regulatory rigor, digital transformation, and sustainable finance imperatives, the bank’s trajectory reflects both strategic discipline and long-term value creation.