Amana Bank closed the nine months ending 30 September with a profit-before-tax (PBT) of Rs. 1.98 billion, reflecting a 18% year-on-year (y-o-y) increase compared to Rs. 1.68 billion from the previous year.
Showcasing a 26% y-o-y growth, profit-after-tax (PAT) grew from Rs. 891 million to cross the Rs. 1 billion mark and close at Rs. 1.12 billion.
The bank’s financing income closed at Rs. 11.7 billion.
However, by maintaining a strong financing margin of 4.1%, the bank posted a y-o-y net financing income growth of 6% to reach Rs. 5.13 billion compared with Rs. 4.85 billion posted in the corresponding period in 2023.
The bank’s total operating income stood at Rs. 6.5 billion, marginally lower by 4% from last year.
Moreover, the bank was able to reduce its impairment charges by 73%, due to which net operating income improved by 16% on a y-o-y basis, to close at Rs. 6.11 billion.
Despite increase in operating expenses, the bank continued to maintain a healthy cost-to-income ratio of 53%, resulting in a 6% y-o-y growth in operating profit before VAT on financial services to post Rs. 2.69 billion.
The bank’s aggregate tax contribution of approximately Rs. 1.57 billion accounted for a significant 58% of the bank’s operating profit before all taxes. The total comprehensive income for the period was Rs. 1.1 billion, reflecting a healthy y-o-y growth of 24%.
Customer advances grew by 16% or Rs. 15 billion to surpass the Rs. 100 billion milestone to post Rs. 104.42 billion whilst maintaining an industry low stage 3 Impairment ratio of 1.4%.
Customer deposits closed the third quarter at Rs. 145.72 billion, with a strong CASA ratio of 42.3%.
The bank’s total assets stood at Rs. 172.52 billion whereas net asset value per share improved to Rs. 41.40.
Given the robust performance during the nine months, the bank’s ROE and ROA stood at 6.7% and 1.6% respectively.
As at 30 September, Amana Bank’s common equity tier 1 and total capital ratios stood at 15.5% and 18.1% respectively, well above the regulatory minimum requirement of 7% and 12.5%.
Amana Bank Chairperson Asgi Akbarally said: “Despite a challenging environment, Amana Bank once again showcased its resilience to post a strong financial performance on key matrices. On behalf of the board, I would like to extend our appreciation to all our valued stakeholders, who have continued to support the bank’s journey of growth and prosperity.”