Pan Asia Banking Corporation PLC reported a solid performance for the first half of 2024, with a Pre-tax Profit (PBT) of Rs. 1,996 million, marking a 32% increase compared to the same period last year.
The Bank’s net fee and commission income surged by 24% in the first half of 2024, driven primarily by increased fee income from loans and advances due to higher credit demand under the current low-interest rate environment and favorable macro-economic conditions. However, net gains from trading fell by 57% due to reduced capital gains from Sri Lanka Government Rupee Securities (T-Bills/Bonds) classified under FVPL.
Significantly, other operating income rose by 270%, attributed to well-managed foreign exchange positions amid the appreciation of the Sri Lankan Rupee (LKR) against the US Dollar (USD) from Rs. 324 to Rs. 306 in the first half of 2024. The Bank’s Cost-to-Income Ratio improved to 45.77% in the first half of 2024 from 48.31% in 2023.
The Bank reported a profit after tax (PAT) of Rs. 1,025 million for the first half of 2024, an 11% increase compared to the corresponding period last year, with an Earnings Per Share (EPS) of Rs. 2.32. Pan Asia Bank’s Director and CEO, Naleen Edirisinghe, stated, “Our strong performance in the first half of 2024 indicates that we are on track to meet our ambitious post-economic crisis targets. A 32% growth in PBT confirms the effectiveness of our strategy, which will be accelerated to generate greater earnings from core banking while enhancing operational efficiencies.”
The Bank maintains all its capital and liquidity ratios well above regulatory minimum standards. As of June 30, 2024, the Tier 1 Capital Ratio stood at 16.09%, and the Total Capital Ratio was 18.04%. The Bank’s Leverage Ratio was 7.32%.
Additionally, the Bank ended the first half of 2024 with healthy credit quality metrics, thanks to improved credit underwriting standards and focused collection and recovery efforts. Under the BASEL III Accord, the Bank’s Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) were well above statutory minimums, with an LCR of 316.22% in all currencies and 262.02% in rupees, and an NSFR of 150.38% as of June 30, 2024.