Resilience amidst profits drop at Pan Asia Bank

Pan Asia Banking Corporation PLC, in its result review for the 9-month period ending September 2022, heralded a period of resilience amidst a multitude of adversities emanating from challenging macro-economic conditions but its profits performance reflected the situation at most banks.

For the nine-month period, the bank reported a Pre-Tax Profit of Rs.626 million and a Post-Tax Profit of Rs.433 million, sharply down from Rs.2.7 billion and Rs.2 billion, respectively, in the same 2021 period.

However the bank said in a statement that its financial performance for the period under review demonstrated judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality from the sharp increase in interest rates.

“Our performance … was achieved while managing the assets and liabilities to generate returns from our existing portfolio, along with keeping a closer tab on operational expenses amid runaway inflation,” noted Nimal Tillekeratne, the bank’s Managing Director/Chief Executive Officer.

The bank increased its provision buffers for loan losses during the period under review by introducing changes to impairment models, taking into consideration increased risks and uncertainties emerged due to the turbulent economic conditions in the country. The impairment expense for the reporting period includes provisions made on foreign currency exposures to the Government of Sri Lanka and amounted to Rs.1.58 billion.

The bank’s Total Asset base stood at Rs. 205 billion as at 30th September 2022, after posting a growth of 8 per cent during the nine-month period, supported mainly by the expansion in investments and loan book.