Amãna Bank delivers strong Q1  performance

  • Records highest ever Q1 PBT & PAT of LKR 739 Mn and LKR 434 Mn respectively
  • Advances up by 13% or LKR 14 billion during Q1 

Amãna Bank continued its performance growth trend in Q1 2025 recording its highest ever Q1 Profit Before Tax and Profit After Tax of LKR 739.4 million and LKR 434.1 million respectively.

Net Financing Income grew by 8% to reach LKR 1.95 billion despite declining market rates maintaining a healthy financing margin of 4.2%, marking an improvement from 2024 YE financing margin of 4%.  With a contribution of LKR 304.4 million in Net Fee and Commission Income and LKR 129.7 million in Net Trading Income, the Bank went on to record a Total Operating Income of LKR 2.38 billion.

Driven by enhanced portfolio quality, improved operating environment and proactive customer engagement, the Bank reduced its Impairment Charge by 45% YoY, closing the quarter at LKR 134.2 million, thereby contributing to a 6% growth in Net Operating Income, which reached LKR 2.24 billion for the quarter. Maintaining a cost to income ratio of 52%, the Bank went on to surpass the 1 billion mark in Operating Profit before all taxes. The Bank’s aggregate tax contribution of LKR 583.5 million accounted for a significant 57% of the Bank’s Operating Profit before all taxes.

The highlight of Q1 2025 was the Bank’s exceptional growth in its advances book which was complemented by the growing demand for non-interest based banking. As a result, the Bank’s advances grew by 13% or LKR 14 billion during the 3 months to cross the LKR 125 billion mark whilst setting an industry benchmark with advances contributing 66% of Total Assets. 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.

The Bank’s deposits grew by nearly LKR 5 billion to close the quarter with LKR 159.1 billion while maintaining an industry best CASA ratio of 43%. The Bank’s Total Assets grew by LKR 7 billion or 4% to post LKR 189.3 billion by end of Q1 2025.

The Bank’s Return on Equity and Return on Assets read as 7.6% and 1.6%, respectively. Further, Amãna Bank’s Common Equity Tier 1 ratio stood at 13.6%, whilst Total Capital ratio was at 15.9%, well above the regulatory minimum requirement of 7% and 12.5% respectively.

Cementing the Bank’s stability and growth potential, during the quarter, the Bank was assigned an Investment Grade credit rating of BBB+ from Lanka Rating Agency (LRA) in their initial rating assessment. This rating by LRA was in addition to the existing BBB-(lka) rating by Fitch, which was upgraded in Q4 2024.

Commenting on the Bank’s Q1 performance Chairman Asgi Akbarally stated “Our first quarter results reflect the strong foundation and prudent strategies that continue to drive Amãna Bank forward. In the face of a challenging market environment, we have delivered solid growth in advances while maintaining our hallmark asset quality. The positive affirmation of our credit ratings further reinforces the growing confidence in our resilient business model ensuring long-term sustainability.”

Also sharing his insights on the Bank’s performance Managing Director/CEO Mohamed Azmeer quoted “We are pleased to have commenced 2025 on a strong note delivering solid growth in advances and deposits. By strategically growing advances early in the year, we are in a position to optimise margins and drive profitability from the outset, which would result in improved Financing Income and profitability during the rest of the year. This achievement is a result of the commitment of our team, the loyalty of our customers, and the trust placed on us by our shareholders, to all of whom I extend my sincere appreciation. Our momentum in Q1 has laid a solid foundation for further growth in the coming quarters, as we continue to serve the evolving needs of our customers through our unique, people-friendly banking model.”

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.

Mohamed Azmeer (Managing Director/CEO Amãna Bank)