Pan Asia ups first half net profit

Pan Asia Bank announ- ced completion of a very successful first half in 2011, with net profit after tax increasing to Rs 406 Mn which is 169 percent better than the corresponding period for 2010. The Bank’s net interest income for the period rose by 43 percent to Rs 1,024 mn from Rs 716 mn in 2010 which came mainly from the core banking income.

The commission income grew by 64 percent compared to previous year same period mainly due to the increased volume of trade, guarantees and other international business handled by the bank. The customer loans almost doubled with a growth of 97 percent to Rs 29,175 mn. The major contributors for the higher asset growth came from gold loans and pawning, leasing, Ranaviru Harasara loans and overdrafts.

During same period the bank’s deposits grew by an impressive 72 percent to Rs 30,792 mn.

Key indicators such as the NPA ratio declined to 4.52 percent from 5.36 percent as at year end 2010, and notably the net NPA ratio is down to 2.59 percent from 2.74 percent which is well within industry average and reflects sound asset quality.

In addition to the impressive performance in terms of profit growth and prudent risk management, Pan Asia Bank also embarked on an aggressive expansion drive under which 10 new branches were added as of June 30, 2011 taking the branch network to a total of 51 branches.