Steady 2023 year for Pan Asia Bank

Pan Asia Banking Corporation PLC has reflected a steady performance amidst multitude of adversities emerging from challenging macroeconomic conditions as the bank reported its financial performance during 2023, which showed judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality in challenging times.

The bank reported a Pre-tax Profit of Rs. 2,328 million for the year ended 31st December 2023, which is 258 per cent increase compared to the corresponding period last year, supported by improved net interest income, increased trading gains from government securities and reduced exchange losses.

The bank ended the year with healthy credit quality matrices due to improved credit underwriting standards and concerted collection and recovery efforts despite the contraction in the loan book during 2023 which impacted the bank’s Stage 3 Loan Ratio adversely, it said in a media release.

The bank also increased impairment provision buffers held regarding investments in International Sovereign Bonds of Government of Sri Lanka (SLISBs) further during 2023 with the expectation of possible adverse outcomes of the on-going government External Debt Restructuring (EDR) programme. The bank recognised an impairment charge of nearly Rs. 2 billion regarding International Sovereign Bonds during 2023.

The bank reported a Profit after Tax (PAT) for the year of 2023 of Rs. 1,855 million, down by 7 per cent compared 2022 since the prior year PAT was positively impacted by a one-off, sizeable, deferred tax reversal although the bank’s operating profitability marked a three-fold figure rise during 2023.