PABC reports Rs 615 m PAT in first nine months

Pan Asia Bank completed a successful first nine months in 2011 reporting a phenomenal 120% increase in net profit after tax, reaching Rs 615 mn compared to the corresponding period for 2010.

This impressive performance has further strengthened Pan Asia Bank's steady growth momentum in 2011 which includes recording above 100% growth in profit after tax for three consecutive quarters.

Bank's strategy in 2011 to grow the revenue by focusing on core banking proved to be immensely successful with Net Interest Income for the period increasing by 40% to 1,586 mn from Rs 1,130 mn in 2010.

Increase in NII was mainly due to the increase in customer loans which grew by 64% to Rs 29,978 mn. The major contributors for the higher asset growth came from Retail Banking products such as Gold Loans/Pawning, Leasing and Overdrafts. Bank also recorded significant growth from their traditional strength areas of SME and mid corporate segments during this period.

Bank's aggressive growth in its asset base was matched by an equally impressive growth in its liability base which saw the deposits grew by an impressive 74% to Rs 33 bn. The balance sheet as at September 30, 2011 stood at Rs 43.5 billion representing a nearly 56% growth compared to the figure a year ago.

Other main contribution towards increased profitability came from the commission income which grew by 60% compared to previous year same period mainly due to the increased volume of trade, guarantees and other international business handled by the bank.

Pan Asia Bank takes pride in its customer centric focus and offers a highly personalized service, competitive deposit and loan rates and an array of novel banking products including Champion Saver account with an attractive interest of 8% for a savings account, exclusive "Prime" banking services package for mass affluent segment, Gold Loans that offer the highest advance amount in the market, and leasing at attractive rates. While recording strong growth numbers in all key financial areas, Pan Asia Bank also maintained a strong risk management discipline across the organization which resulted in the NPA ratio improving from 5.36% as at year end 2010 to 4.07% as at September 30, 2011 and notably the Net NPA ratio improving from 2.74% to 2.32% during the same period which is well within industry average and reflects sound asset quality.