Pan Asia Bank profit tops Rs 361m

Pan Asia Bank announced an impressive net profit after tax of Rs 361.79 million and a profit before tax of Rs 693.92 million for 2010.

The Bank’s net interest income rose by 26.8 percent to Rs 1,625.39 million from Rs 1,281.65 million in 2009 which came mainly from the core banking income. Forex income too showed a considerable growth of 47.8 percent reflecting the increased volume of trade and other international business handled by the bank.

Bank CEO Claude Peiris said this year’s achievement is impressive by any standards and we are proud of the team at Pan Asia. “With a highly focused Management Team committed to branch expansion and growing the business through its different market segments, I am confident that Pan Asia will grow even further in 2011,” he said.

Total Assets grew by 44.6 percent to Rs 31,180.96 million, with deposits growing by a satisfactory 31.5 percent. The high demand for credit which prevailed during the year resulted in an increase in customer advances by over 78.7 percent during the year. With Capital Adequacy Ratio at 15.3 percent and the Liquidity Ratio at 23.2 percent as at end of the year the Bank is in a strong position to grow customer Advances without any pressure, which augurs well for 2011 when demand for credit is expected to increase significantly.

Further, Non Performing Advances ratio, another key indicator declined from 13.1 percent to 5.4 percent as at year end 2010 and notably the Net Non Performing Advances ratio was down to 2.7 percent which is well within the industry average and reflects sound asset quality. The Bank expanded its network of branches with six new branches to reach a total of 41 branches at the end of 2010 and will continue on an aggressive expansion drive.