Amana Bank PLC continued its robust performance to conclude 2024 with a Profit After Tax growth of 28% to reach Rs. 1.8 billion from Rs. 1.4 billion posted in 2023. Profit Before Tax for the corresponding period grew from Rs. 2.3 billion to close at Rs. 2.8 billion.
The Bank maintained a financing margin of 4.0%, resulting in the Bank’s Net Financing Income improving by 6% to reach Rs. 6.9 billion from Rs. 6.5 billion a year ago.
Driven by trade volumes generated from our valued SME and Corporate customers as well as increased digital transactions and other value-added services, the Bank’s Net Fee and Commission income grew by 16% to cross the 1 billion milestone to close at Rs. 1.1 billion.
In the backdrop of excess USD liquidity in the market and the resultant drop in premium, the Bank reported a Trading Income of Rs. 0.7 billion. With improvements in the operating environment and asset quality, supported by timely customer engagements, the Bank’s Impairment Charges reduced by 86% or from Rs. 2.1 billion to Rs. 0.3 billion, resulting in the Bank’s Net Operating Income increasing by 18% or Rs. 1.3 billion to reach Rs. 8.4 billion. Despite increase in operating expenses mainly connected with the Bank’s drive to expand its reach and related expenses, the Bank maintained a cost to income ratio of 53%, resulting in an 18% increase in Operating Profit before VAT on Financial Services and Social Security Levy to Rs. 3.8 billion from Rs. 3.2 billion in 2023. The Bank’s aggregate tax contribution of Rs. 2.0 billion accounted for a significant 53% of the Bank’s Operating Profit before all taxes.
As a result of the growing demand for Bank’s people friendly banking model, Customer Advances grew significantly by 24% or Rs. 21.6 billion as it crossed the 100 billion mark, ending the year with a portfolio of Rs. 111.3 billion compared to Rs. 89.7 billion in 2023.
This performance was achieved while continuing to have one of the lowest industry-wide Stage 3 Impaired financing ratio of 1.3% owing to the Bank’s effective risk management and underwriting framework, driven by its unique people-friendly and development focused approach.
Customer Deposits recorded a growth of 16% or Rs. 21.5 billion to close the year on Rs. 154.4 billion. The Bank’s Total Assets grew by Rs. 22.9 billion or 14% YoY from Rs. 159.5 billion in 2023 to post Rs. 182.3 billion as at end December 2024.
The Bank’s Return on Equity and Return on Assets improved to 8.0% and 1.6%. Amana Bank’s Common Equity Tier 1 ratio stood at 15.0%, whilst Total Capital ratio was at 17.6%, well above the regulatory minimum requirement of 7% and 12.5%.
Towards creating value to its shareholders, Amana Bank declared its seventh consecutive dividend in 2024, being the highest ever dividend payout so far, totalling Rs. 661 million which marks a doubling of the dividend paid in 2023.
