Amãna Bank PLC recorded its best-ever quarterly performance since inception with a profit before tax (PBT) of Rs. 385.8 million recording a 78% year-on-year (YoY) growth in PBT and a 92% YoY growth in profit after tax (PAT).
Having surpassed the Rs. 1 billion PBT milestone in record time in 2021, Amãna Bank continued its positive trend into Q1 2022 also with a PAT of Rs. 250.7 million compared to PBT of Rs. 217.1 million and PAT of Rs. 130.6 million booked in Q1 2021.
Commenting on its Q1 2022 performance, the bank’s Managing Director/CEO Mohamed Azmeer said: “I am humbled and honoured by the bank’s remarkable Q1 performance, which is our best quarterly performance to date, especially considering that the same has been achieved during a challenging period marred by economic uncertainties. I strongly believe that our people-friendly banking solutions are better grounded to endure the current economic challenges. Since 2018, our economy has undergone multiple challenges, but it is the learnings from those challenges that has moulded and prepared us to be more robust, resilient, and grounded to face the realities.”
The double-digit growth in both customer advances and customer deposits was aided by the bank’s strong focus on the small and medium enterprise (SME) segment, which is the most vital sector in driving economic growth and revival. With customer deposits crossing the Rs. 100 billion milestone during Q1 2022, the bank went on to achieve a sound growth of 10% in deposits to close at Rs. 106.0 billion, while customer advances closed the quarter at Rs. 86.7 billion, reflecting an impressive three-month growth of 14%.
Owing to its advances’ growth being well-supported by a healthy financing margin of 3.5%, the bank’s net financing income grew by a solid 26% YoY, to close the quarter at Rs. 1.1 billion compared to Rs. 891.9 million achieved during the corresponding period of 2021. Despite import controls and challenges in the foreign currency market, which impacted fee and trading income, the bank achieved a 41% YoY growth in total operating income to reach Rs. 1.46 billion, while the net operating income, after accounting for adequate impairment, grew by 30% to Rs. 1.22 billion.
Despite headline inflation being in excess of 21% in March 2022, the bank contained the increase in its operating expenses to 8%. Following this, the bank recorded a 75% YoY growth in operating profit before VAT on financial services to reach Rs. 541.4 million. The bank’s aggregate tax contribution of Rs. 290.7 million for Q1 accounted for 54% of the bank’s operating profit before all taxes.
The bank’s total assets as at end of 31 March 2022 stood at Rs. 139.6 billion, reflecting a noteworthy enhancement of 14% during the quarter. The bank continued to place great emphasis on portfolio management and recoveries through timely customer engagement which resulted in containing non-performing advances (NPA) well below the industry averages with net NPA and gross NPA ratios of 0.5% and 2.8% respectively. The bank’s total capital ratio stood at a healthy 14.4% as at Q1 2022, well above the minimum regulatory requirement of 12.5%.
Commenting on this occasion, Amãna Bank Chairman Asgi Akbarally said: “In gratitude for the trust and confidence placed towards the bank, we would like to affirm that Amãna Bank, along with the support and engagement of our committed staff are steadfast to stand by and support our customers to overcome this period of economic adversities, by understanding their needs and providing equitable financial solutions, which currently is a matter of national importance, and thereby contribute towards ensuring a better tomorrow for everyone.”