- Advances grow by 24% with industry low Stage 3 Impairment
- Deposit up by 16% with industry high CASA of 44%
- PBT up by 21% to close at LKR 2.8 billion as PAT grows 28% to reach LKR 1.8 bn
Amana Bank PLC continued its robust performance to conclude 2024 on a strong note as the Bank recorded a Profit After Tax growth of 28% to reach LKR 1.8 billion from LKR 1.4 billion posted in 2023. Reflecting a healthy 21% growth, Profit Before Tax for the same period grew from LKR 2.3 billion to close at LKR 2.8 billion.
This strong bottom-line performance was achieved despite the impact of declining market rates. The Bank maintained a healthy financing margin of 4.0%, resulting in the Bank’s Net Financing Income improving by 6% to reach LKR 6.9 billion from LKR 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 LKR 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 LKR 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 LKR 2.1 billion to LKR 0.3 billion, resulting in the Bank’s Net Operating Income increasing by 18% or LKR 1.3 billion to reach LKR 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 LKR 3.8 billion from LKR 3.2 billion in 2023. The Bank’s aggregate tax contribution of LKR 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 LKR 21.6 billion as it crossed the 100 billion mark, ending the year with a portfolio of LKR 111.3 billion compared to LKR 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.
Crossing the 150 billion milestone, Customer Deposits recorded a noteworthy growth of 16% or LKR 21.5 billion to close the year on LKR 154.4 billion, while maintaining an industry high CASA ratio of 44%. The Bank’s Total Assets grew by LKR 22.9 billion or 14% YoY from LKR 159.5 billion in 2023 to post a solid LKR 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%, respectively. Further, 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% respectively.
In 2024, a key milestone further validating the Bank’s financial strength was Fitch Ratings Sri Lanka upgrading Amana Bank’s national long-term rating from BB+(lka) to an investment-grade rating of BBB-(lka) with a stable outlook—unlocking new opportunities for growth and expansion that benefit all stakeholders. Further cementing the Bank’s stability and growth potential, Lanka Rating Agency in their initial assessment, assigned Amana Bank a national long-term rating of BBB+ with a stable outlook. Demonstrating its strength and industry leadership, Amana Bank was ranked among the World’s Top 25 Strongest Islamic Banks by The Asian Banker, rising to 24th place from 37th in 2023.
Towards creating value to its shareholders, Amana Bank declared its 7th consecutive dividend in 2024, being the highest ever dividend payout so far, totalling LKR 661 million which marks a doubling of the dividend paid in 2023.
Commenting on the Bank’s 2024 performance Chairman Asgi Akbarally stated “Against the backdrop of an improving operating environment and economic conditions, Amana Bank has once again delivered a strong performance, demonstrating the resilience of our unique banking model. Our continued growth, solid financial position, and recognition by credit rating agencies underscore the trust and confidence placed in us by our customers and stakeholders. I extend my sincere appreciation to my fellow Directors, our management, and staff for their dedication and commitment, as well as to our customers and shareholders for their unwavering trust and support. As we move forward, we remain committed to driving sustainable growth while delivering value to all those we serve.”
Also sharing his views Managing Director/CEO Mohamed Azmeer said “With improving economic conditions, Amana Bank has been able to accelerate its growth momentum, surpassing key milestones and strengthening our market position. Our performance reflects the Bank’s unwavering focus on customer-centricity, prudent risk management, and operational excellence. I would like to extend my heartfelt gratitude to our Chairman and Board of Directors for their guidance and oversight, our management and staff for their relentless efforts, and our shareholders, customers, and valued partners for their continued trust and confidence. We are excited about the opportunities that lie ahead as we continue to expand our reach and enhance our value proposition, ensuring we remain a trusted financial partner for our customers.”
Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange with Jeddah-based IsDB Group being the principal shareholder of the Bank. The IsDB Group is a ‘AAA’ rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest based banking model, Amãna Banks was recognized amongst the Top 25 Strongest Islamic Bank’s in the World by The Asian Banker.
Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.
