Pan Asia Bank posts Rs.1.8 bln pre-tax profit in 9-mth period

Pan Asia Banking Corporation PLC has recorded modest performance during its third quarter as well as for the first nine months of 2017 amid, what the bank cited as “challenging macro-economic factors including higher interest rates and slowdown in demand for new loans”.

In a media release, the bank said it posted Rs.1.8 billion in pre-tax profit and Rs. 918.1 million in post-tax profit for the nine months ended September 30, 2017 compared to a post-tax profit of Rs.905.8 million in corresponding period in 2016.

For the July - September quarter, the profit remained almost unchanged at Rs. 301.3 million from the same period last year as the higher credit costs pared the potential gains, the release said.

Net interest income for the nine months rose by 8 per cent to Rs.3.67 billion from a year earlier as the rise in interest cost beat the rise in interest income.

“The bank gave Rs.4.8 billion in new loans and receivables during the period nudging the bank’s total loans and receivables book to surpass Rs.100 billion to end the period with a total book of Rs. 103.3 billion,” the release added.

The growth in loans almost corresponded with the rise in deposits as the new deposits too rose by Rs.4.1 billion.

Speaking on the performance, the bank’s Director/ Chief Executive, Nimal Tillekeratne said, “I consider this year as well as the next as ‘reset’ years which will lay a stronger foundation for a sustainable and a durable growth in the medium to long term”.