Strong core banking growth for Pan Asia Bank in Q1

Pan Asia Bank continued with its growth momentum with an increase of 52% in its gross interest income which helped them achieve a Profit after Tax of Rs. 197 million in Q1.

Testament to its focus on strengthening core banking performance, total net revenue showed an impressive 19% increase Q1 compared to the corresponding period in 2011. Excluding capital gains on Fixed Income Securities, the bank recorded an 18% improvement in its core banking activities compared to the same period the previous year.

This performance was achieved despite total expenses going up by 36% due to branch expansion and staff related costs.

In the same period, the bank grew its total customer deposit base by over 13% to top Rs. 40 billion, a testament to the effectiveness of its strong branch network and promotional strategies employed.

In spite of operating in a challenging macro environment backdrop, Pan Asia Bank also managed to generate a robust growth of 6% in its total customer advances portfolio which exceeded Rs 38 billion. The balance sheet stood at Rs. 49 billion as of end Q1.

While recording impressive growth numbers Pan Asia Bank also improved the strength of its financial position by maintaining a liquidity ratio of 21.29 % which is well above the regulatory requirements. Bank’s main three areas, namely Retail Banking, Corporate Banking and Treasury contributed immensely to generate these impressive numbers while effective credit risk and controls in place ensures that Gross Non Performing Loan (NPL) ratios improved from 3.58% to 3.43% in this period. As of end of Q1, Net NPA of the bank stood at 2.2%.