Amana Bank Archives

April 2, 2024

Amana Bank is honoured to announce its strategic partnership with Mireka Homes (Pvt) Ltd., the developers of Havelock City and fully-owned subsidiary of Sri Lanka’s largest listed property developer Overseas Reality, to provide customers access to luxury living with affordable and people friendly financing solutions.

With this collaboration, customers can finance the purchase of ready to move-in luxury apartments from Phase 3 and 4 of Havelock City and be a part of a neighbourhood which spans 18 acres with lush greenery and access to a world-class shopping mall and state of the art office complex. Towards making this ownership a reality, Amana Bank will ensure approval within 3 days with tailor made repayment plans to suit customer’s income capacity. Further, testifying the Bank’s people friendliness, customers can early settle their Home financing facility without incurring any additional charges.

A Memorandum of Understanding was recently signed along with the participation of Amana Bank’s Managing Director/CEO Mohamed Azmeer, VP –Retail Banking & Marketing Siddeeque Akbar, Head of Retail Financing Riyaz Noor, Mireka Homes’ Director Ralph de Lanerolle, General Manager Sales Ms Nirupa Peiris and Head of Legal Ms Laknadhi Perera.

Commenting on this partnership Amana Bank’s VP – Retail Banking & Marketing Siddeeque Akbar stated “Amana Bank is honoured to collaborate with Havelock City, showcasing our dedication to facilitating property investments in Sri Lanka’s growing luxury apartment market. Through this partnership, we aim to provide tailored solutions and seamless and speedy processes for owning a state of the art apartment, enabling our customers to achieve their aspirations while also enjoying our people friendly financing features.”

Also sharing their views Mireka Homes’ Director Ralph de Lanerolle said, “We are excited to partner with Amana Bank in this endeavour and to provide our well-designed apartment solutions alongside their non-interest based, people-friendly banking services to access luxury living. We believe this partnership will make luxury living more affordable to everyone.”

For more information on Amana Bank’s Apartment Financing solution, please visit www.amanabank.lk or reach their contact center on 011 7 756 756.

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 having a 29.97% shareholding 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 continued to be recognized amongst the Top 100 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.

November 27, 2023

One of the largest Rights Issues in recent past raising Rs. 6 billion amidst economic challenge
Shares listed with ceremonial CSE Bell Ringing
Rights issue features foreign, local corporate and HNW participation

Having carried out a successful Rights Issue with the objective of meeting the enhanced regulatory minimum capital, Amana Bank recently listed its Rights Issue shares on the Colombo Stock Exchange (CSE) which was marked by the ceremonial bell ringing to commence market trading. The occasion was graced by Amana Bank’s Chairman Asgi Akbarally, Managing Director/CEO Mohamed Azmeer, Senior Director Dilshan Hettiaratchi, CSE’s Chief Executive Officer Rajeeva Banadaranaike, Chief Regulatory Officer Renuke Wijayawardhane, Head of Listing Kanishka Munasinghe along with Senior Management representing both the Bank and CSE.

Being one of the largest Rights Issue in the recent past, Amana Bank raised LKR 6 billion with the participation of existing and new shareholders featuring strong foreign, corporate and HNW investors.

Welcoming the gathering present on the ceremonial occasion CSE Chief Executive Officer Rajeeva Bandaranaike said “We are happy to have facilitated yet another capital raising opportunity for Amana Bank PLC. It’s heartening to see listed companies coming back to the market to raise further capital. Furthermore, this is an endorsement of the level of confidence that shareholders have in Amana Bank PLC to raise LKR 6 billion with the rights issue. This issue drew interest from both local investors and foreign investors. It is particularly important in today’s context, where we require foreign investors in listed companies.”

Delivering the key note address Amana Bank Chairman Asgi Akbarally said “I extend my heartfelt gratitude to each and every one of you who has been a part of this journey, especially our larger and new shareholders, IsDB Group, Senthilverl Holdings, Omar and Kassim families. Your trust and confidence inspire us to strive for excellence and innovation. Together, let us continue to build a stronger, more resilient Amana Bank that contributes to the growth and prosperity of our shareholders, customers, and the nation as a whole. The funds raised through this issue will be instrumental in fuelling our strategic initiatives, expanding our reach, and ensuring sustained value creation for our shareholders as we begin a new chapter in the success story of Amana Bank.”

Also speaking at the ceremony Managing Director/CEO Mohamed Azmeer stated “As we ceremonially conclude the rights issue, I would like to thank the shareholders for their confidence and regulators for their guidance and support. With our valued investors placing their confidence on the Bank, the onus is now upon us to ensure this confidence is well reciprocated with enhanced shareholder value as we grow and expand to capitalize the opportunities and achieve our full potential.”

April 18, 2023

Experienced Treasury Dealer Harindra Oberysekere has been promoted as Amana Bank’s Head of Treasury and Financial Institutions while being inducted to the Bank’s Management Committee. Prior to this Harindra was the Bank’s Asst. Vice President – Treasury and Financial Institutions.

Harindra counts over 30 years of banking experience predominantly as a Dealer with 18 years in conventional banking and 12 years with Amana Bank, where he pioneered many non-interest based treasury instruments and solutions.

Harindra holds a Master’s Degree in Finance and Postgraduate Certificate in Finance from the University of Southern Queensland, Australia while also possess an ACI Dealing Certificate from the Financial Markets Association. Harindra is the Past President of Sri Lanka Forex Association, the premier body in developing, promoting, and stimulating innovation in the financial market/s of Sri Lanka.

Commenting on his appointment, Amana Bank’s Managing Director/CEO Mohamed Azmeer said “Having been with us for the last 12 years, Harindra brings in a wealth of knowledge in treasury functions including sound understanding of non-interest based treasury solutions. He has been instrumental in ensuring a good stream of trading income for the Bank and we look forward to his leadership in taking the Bank’s Treasury and Financial Institution function to the next level.”

February 17, 2023

The AB Cash Management services entity which is under AB Securitas (Pvt), the leader in Total Loss Prevention Solutions Provider in the country, recently introduced Total SSD Management in Sri Lanka. This newest add-on to the products and services is the novelty concept of “Brown Label SSD. The project is operated under AB Cash Management to cater to multiple aspects and demands in Commercial and Industrial Security in Sri Lanka. The signing of the agreement for this new venture took place at Amana Bank with the participation of the Managing Directors of both organizations.

As a continuous service development, AB Securitas launched this new service together with the total solution where they look into the hardware management and service, electronic security, AC facility, and Security Guard Services. This new system at the banks includes having one single point of contact, lack of capital expenditure (CAPEX) for banks as they charge a monthly service charge, no maintenance or staff cost, it’s hassle-free, and with this, banks can focus on giving their full attention to the core business as AB Securitas takes care of the non-core activities. The first system was launched with Amana Bank in Thoppur, Trincomalee.

Amana Bank is the first and only licensed commercial bank in Sri Lanka to conduct all its operations under the principles of the non-interest Islamic banking model. It offers the full spectrum of retail banking, SME banking, corporate banking, treasury, – and trade finance services.

Commenting on the partnership, Amana Bank’s Managing Director/CEO Mohamed Azmeer said, “Amana Bank is honored to collaborate with AB Cash Management Services and AB Securitas to operate our Self Banking Centers and remote ATM sites under the Brown Label Self Services Devices concept, which will ensure our customer’s an efficient service in these locations. This partnership will also enable us to accelerate the expansion of our Self Banking Centre network to remote locations in the country, thereby taking our unique people-friendly banking concept to the masses.”

Also sharing his views Amana Bank’s Chief Operating Officer Imtiaz Iqbal said, “This partnership with AB Cash Management Services and AB Securitas will facilitate us to be more agile in providing our customers repetitive service while also leveraging on the strength and process efficiency of our collaborating partners.”

The Senior Manager of ATM Management Services of AB Securitas, Mr. Sanjaya Fernando, also commented. “We have been providing a service for 11 years and serving 10 banks. Under this new concept, we hope to help develop the access required for customers around the island. We also look forward to offering this solution to all banks to revolutionize the ATM Management industry so our users can have a better service experience.”

During the signing ceremony, – the Director/CEO of AB Securitas, Ret. Wing Commander D Pradeep S Kannangara stated. “We are delighted and honored to inaugurate this monumental project with Amana Bank. AB Securitas has thrived in the industry as the total loss prevention solution service provider, being active throughout the pandemic as well. We look forward to continuously developing this concept and hope to take it to several more banks around Sri Lanka.”

ATM Management Service has covered all ATM-related services including replenishments, calls out, and first-line maintenance. The Replenishment Services include cash replenishments, clear cards, clear cash, clear deposits, journal roll replacement, ribbon replacement, cash reconciliation, maintaining consumables of ATM/CDM, and closing and re-activating ATMs. Brown Label ATMs are those Automated Teller Machines where hardware and lease of the ATM machine are owned by AB Securitas, but the cash management and the connectivity to banking networks are provided by a sponsor bank whose brand is used on the ATM.

Under this new concept, AB Securitas provides the total end-to-end solution from the ATM and CDM machines to Cash Collections (CIT), Replenishments and Reconciliation, Real-Time Monitoring of Machine Behavior and Forecasting, Currency Processing and Storage, RTGS, Central Bank Deposits/Withdrawals, Static Security and Cleaning, CCTV Systems, Middleware, and Quick Response (QRT). On the OpEx module, from the customer’s point of view, they can reduce the cost significantly while experiencing a hassle-free One-Stop Service Delivery.

AB Securitas provides its cash transport and ATM management services to all premier banks in Sri Lanka for over a decade. As a member of international professional organizations like ATMIA (ATM Industry Association) and CR ( Currency Research ) – ICCOS, AB Securitas participates in several trade seminars annually. AB Securitas organize and fully sponsor the only local “cash seminar “to share the modern security methodology and devices used by the world’s leading cash and ATM management companies with its clientele consisting of all banks, financial institutions, etc.

November 15, 2022

Amana Bank has successfully continued its growth trajectory to record a Profit Before Tax of LKR 940.0 million for the nine months ending 30 September 2022, showcasing its resilient performance amidst a challenging economic environment. The Bank’s PBT achievement reflects a 28% YoY growth compared to the 2021 corresponding period PBT of LKR 736.3 million. Profit After Tax for the same period reflected a 39% YoY growth to reach LKR 600.5 million from LKR 433.2 million recorded a year back. Both Profit Before Tax and Profit After Tax in Q3 alone grew by 66% YoY to reach LKR 383.0 million and LKR 238.5 million respectively.

During the 9 months period, the Bank’s Financing Income grew by 44% to LKR 8.09 billion. Owing to policy rate changes resulting in higher cost of deposits and lower financing margin, the Bank’s Net Financing Income stood at LKR 3.10 billion. Total Operating Income recorded a 28% growth to reach LKR 4.25 billion, which was supported by Net Fee and Commission Income of LKR 516.2 million and Net Trading Income of LKR 637.1 million, both showcasing significant YoY growth. After prudentially accounting for an increased level of impairment considering current and anticipated market conditions, Net Operating Income grew by 20% to LKR 3.49 billion.

Despite headline inflation increasing in the recent past, where it increased from 66.7% in August to 73.7% in September, the Bank contained the increase in its operating expenses to 14%. As a result the Bank recorded a 32% YoY growth in Operating Profit before VAT on Financial Services to reach LKR 1.32 billion. The Bank’s aggregate tax contribution for the nine months ending 30 September stood at LKR 723.5 million, accounting for 55% of the Bank’s Operating Profit before all taxes.

In the backdrop of tight monetary and market liquidity conditions, the Bank continued to support private sector credit growth, with Customer Advances growing by 10% to close at LKR 83.43 billion while Customer Deposits grew by 14% to close at LKR 109.72 billion, reflecting increased confidence in the Bank’s people friendly banking model. The growth in customer deposits was achieved whilst maintaining a healthy CASA ratio of 43%. Despite challenging market sentiments, the Bank’s Impaired Financing and Advances (Stage 3) ratio continued to remain well below the industry average and stood at 2.3% at Q3 end. The Bank’s Total Assets during the 9 months grew by 17% to close at LKR 142.86 billion. Continuing to maintain strong capital adequacy positions, The Bank’s Total Capital Ratio stood at a healthy 13.9% as at Q3 2022 while its Common Equity Tier 1 Capital Ratio stood at 11.9%, both well above the minimum regulatory requirement of 12.5% and 7.0% respectively.

As a result of the Bank’s continuous profitability, the Bank recently announced its 5th successive annual dividend; a Scrip Dividend of 10 cents per share for the Financial Year 2022, totalling to a dividend pay-out of Rs 269 million.

Commenting on the Bank’s recent financial performance, Chairman Asgi Akbarally said “The Bank has been successful in navigating a turbulent period to reach a healthy financial position as of end Q3 2022. During the last nine months, we have been able to stand by and support our customers to overcome a period of economic adversities. I am thankful to the management and staff for their resilience, commitment and dedication.”

Sharing his comments, the Bank’s Managing Director/CEO Mohamed Azmeer said “In the backdrop of increasing challenges in the external environment, I am pleased that the Bank has been successful in maintaining its resilient performance in the preceding quarter. In line with CBSL directives and guidelines, the Bank continued to play a key role in stimulating economic recovery by supporting our customers at all levels. Thanks to our unique model of banking which is development focussed, we stand protected and unexposed to many of the elements which continue to challenge the entire Banking industry. With the nation making headway towards economic recovery in the last few months, we remain confident and positive and stand ready to play an impactful role in enabling growth and enriching lives. On behalf of the Board and Management of the Bank, I am grateful to the commitment of our staff members in managing the numerous uncertainties and the continued confidence and trust placed on us by our customers.”

Amana 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 having a 29.97% shareholding 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, Amana Bank is recognized amongst the Top 50 Strongest Islamic Bank’s in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions.

November 2, 2022

With the commencement of the T20 World Cup, Cricket has become the platform for all Sri Lankans to come together as one nation bringing hope and smiles at a time when the country is faced with numerous challenges.

With the purpose of sharing the joy and achievements of Sri Lanka Cricket, Amana Bank recently commenced a campaign under the theme “ජයග්රහණයට එහා ගිය මනුෂ්යත්වය | Humanity Beyond Victory”, where the Bank pledges to donate funds to OrphanCare based on the performance of the Sri Lankan cricket team during the Super 12 stage and knock-out matches.

During the T20 World Cup, every wicket claimed by Sri Lankan bowlers will earn OrphanCare Trust Rs 10,000/- while every 4 and 6 scored by the Sri Lankan batsman will result in Amana Bank donating Rs 4,000/- and Rs 6,000/- respectively.

Commenting on this initiative Amana Bank’s Vice President Retail Banking & Marketing Siddeeque Akbar said “At a time when everyone is overwhelmed with excitement on cricket, we at Amana Bank wanted to share this euphoria and the Sri Lankan spirit with the less fortunate children registered with the OrphanCare Trust. We are delighted to witness the support and encouragement of the public to this initiative. Through this campaign we hope to shine a spotlight on the 2nd Abandonment faced by Orphans when they reach the age of 18 and are forced out of institutional care. We also encourage like-minded corporates and individuals to support the OrphanCare Trust and encourage its efforts towards addressing this social need”

Commenting on behalf of OrphanCare, Trustee K.R. Ravindran said “We are thankful to Amana Bank for this great gesture which will go a long way in benefiting orphan children. I am confident as Sri Lanka excels at the World Cup, OrphanCare will also witness similar success.”

Since launch to date OrphanCare has made 11 rounds of fund disbursements, benefitting over 3,100 orphans from 85+ child care homes across the country. The OrphanCare Trust is administered by a team of trustees who have a track record of passionate social service and includes Chairman of the Trust Ruzly Hussain (founder of the Rotaract movement in Sri Lanka), Miss Primrose Shireen Watson – Secretary (Fellow Member of The Chartered Governance Institute UK), Jazri Magdon Ismail – Treasurer (Past President AAT), Deshabandu Tilak de Zoysa (Chairman Helpage Sri Lanka), Harsha Amarasekera (President’s Counsel), ) K R Ravindran (Chairman, Board of Trustees of Rotary Foundation USA and former President Rotary International ), Sharad Amalean (Co-founder MAS Holdings) Osman Kassim (Founder & Past Chairman Amãna Bank, Tyeab Akbarally (Senior Director Akbar Brothers) and Mohamed Azmeer (MD/CEO Amãna Bank).

September 21, 2022

Amana Bank has continued its effort in supporting its SME and business banking customers to help reduce their burden as a result of the current unprecedented macroeconomic conditions.

Similar to overcoming the difficult times brought on by the pandemic-induced economic slowdown, the banking sector was once again called upon to play a major role in facilitating various policy decisions of the Government and CBSL towards economic recovery.

Speaking on the subject, the Bank’s Vice President Business Banking Irshad Iqbal said “Taking into consideration the challenging macroeconomic environment, the Bank has re-aligned its financing offerings, enabling the export-oriented businesses and foreign currency earning companies to be adequately and comfortably serviced for new business opportunities, as well as providing additional financing for growth and re-structuring of their existing credit facilities. Further in line with CBSL guidelines we have extended appropriate concessions, including grace periods for settlement and other resettlement plans.”

Sharing the success story on how the Bank extended support to its customers during the Covid-19 pandemic, Irshad Iqbal said “the Bank offered a host of relief measures including moratoriums on repayment of credit facilities up to 6 months, which covered close to 50% of the financing portfolio as well as disbursing close to LKR 1.9 billion through the Saubagya Renaissance Facility in collaboration with CBSL to pass on the benefit of low financing cost to eligible customers. These measures provided a much needed lifeline for businesses to survive this challenging period and revive their operations, as the country gradually trudged towards normalcy.”

“But with the onset of the economic and political crisis, our commitment to stand by our customers remained unchanged, as we moved quickly and decisively to support businesses, particularly concentrating in agriculture, fisheries, retail, health care, manufacturing and renewable energy sectors. Beyond this, keeping true to our model of people friendly banking, to help our customers to tide over the difficult times, we went beyond the call of duty to deepen relationships with our customers and truly understand their unique circumstances in order to guide them” added Irshad Iqbal on the Bank’s focus on helping its SME and Business Banking clientele.

“Despite SMEs having to face inherent challenges as a result of the economic meltdown, the Bank continued to support the SME sectors not charging any penalties or punitive rates. The Bank intensively engages with the SME sector, due to the importance it carries to the overall economy and being regarded as the driving force of the economy. Further our people friendly, non-interest based banking model complements the development efforts of the SME sector while also supplementing our drive to finance sustainable development projects in line with UNSDG. The recent syndicated financing of the country’s largest biomass energy plant is one such example the country can be honoured of” said Iqbal. Being optimistic on the future prospects, Irshad Iqbal said “We remain confident that, with the necessary policies and action in place, the country will be able to bounce back swiftly, for which Amana Bank is geared to play a pivotal role.

Further, showcasing the Bank’s strong customer engagement, Irshad Iqbal commented “Amana Bank was recently entrusted with Sri Lanka’s largest dividend distribution, which speaks volumes on the trust and confidence we have built in the market over the years, where we are very much geared to become a mainstream bank for leading corporates as well.”

Amana 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 having a 29.97% shareholding 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, Amana Bank is recognised amongst the Top 50 Strongest Islamic Bank’s in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions.

September 19, 2022

OrphanCare recently launched its official website www.orphancare.org under the patronage of its Board of Trustees and Founder Sponsor Amana Bank. The website was developed in partnership with eBEYONDS (Pvt) Limited, who have come on board as the Official Digital Technology and Solutions Partner for OrphanCare.

The informative and interactive www.orphancare.org website, provides donors and well-wishers an insight to the OrphanCare project as well as the impact it has reached thus far. The website will soon be ready to also facilitate online donation payments where donors can use their credit/debit cards for donations.

Commenting on the launch of the website, Chairman of the OrphanCare Trust Ruzly Hussain said “We are delighted to have launched the official website for OrphanCare, which will be an ideal platform to connect donors, well-wishers and partners to our noble cause and apprise them of our progress. Other than enabling donation payments, the website also plans to facilitate other qualitative support requirements of orphans through which we can find ideal partners who are passionate to help these children in taking the next step in their lives”

Also sharing his thoughts, Director/CEO of eBEYONDS (Pvt) Limited Sajith de Silva said “Thousands of children in the country live as orphans without love, protection, and belongingness. The Orphan Care programme initiated by Amana Bank is rooted in the noble concept of ‘No child should live without love & protection’. Since this concept resonates with the values and beliefs of eBEYONDS, we wholeheartedly support the Orphan Care programme and sponsor the development & hosting of the official website. We trust all people worldwide will support the OrphanCare programme.”

OrphanCare was established as an independent trust with Amana Bank PLC as the Founder Sponsor where OrphanCare aims to address a very important yet mostly unattended need of orphan children; which is securing the fate of orphans once they reach the age of 18 and are compelled to leave institutional care. Since launch to date OrphanCare has made 11 rounds of fund disbursements totaling in excess of LKR 35 million, benefitting over 3,100 orphans from 85+ child care homes across the country.

September 12, 2022

Colombo, Sri Lanka, 9 September 2022: Amana Bank recently partnered with the United Nations Development Programme (UNDP) in Sri Lanka, to channel support through the recently launched ‘Private Sector Giving Facility for Emergency Relief’, initiated towards overcoming the rising challenge of severe medical and food supply shortages due to the ongoing economic crisis.

By pledging support to this initiative, Amana Bank joins hands with many other leading corporates including Hemas Holdings, Dilmah Ceylon Tea, Brandix, Daraz and Citi Foundation, through whose collaboration UNDP will secure contributions towards procurement of medical supplies and address food security needs.

Commenting on the collaboration, Amana Bank’s Managing Director/CEO Mohamed Azmeer said, “With the country going through a challenging period, Amana Bank is committed to supporting the country and its people, since it is an integral part of the values based on which the unique people-friendly model of banking is built upon. Through this collaboration with UNDP, we aim to provide a platform to our customers as well as well-wishers to contribute to this timely cause and support the socio-economic recovery for the most vulnerable communities in the country, and hopefully drive a sustainable change.”

Speaking on the partnership, Ms. Malin Herwig, Officer-in-Charge, UNDP in Sri Lanka stated, “Partners are key agents in times of crisis, with the private sector historically playing a critical and strategic role in humanitarian efforts. UNDP works with a wide range of partners such as Amana Bank, in achieving our shared vision to help countries achieve sustainable development by eradicating poverty in all its forms and dimensions, accelerating structural transformations for sustainable development, and building resilience to crises and shocks.”

Contributions will be channelled towards procuring relevant seeds and materials for Maha season harvesting and raising awareness towards strengthening home gardening activities. According to the July 2022 Food Security Survey conducted by World Food Programme, nearly half of Sri Lankan households are food insecure, reflecting a substantial deteriorating trend from the previous survey month. The UNDP private sector facility and related interventions will complement and strengthen the ongoing health sector efforts of the Ministry of Health and the World Health Organization (WHO), and food sector efforts led and coordinated by the Food and Agriculture Organization (FAO) among others.

August 15, 2022

Amana Bank continued its growth momentum in profit amidst subdued economic conditions, and recorded a growth of 25% in mid-year Profit after Tax to reach LKR 362.0 million in comparison to LKR 289.3 million a year ago. Profit Before Tax stood at LKR 556.9 million compared to LKR 505.7 million posted in H1 2021, reflecting a healthy 10% YoY growth.

During the first six months which was marred by economic and political instability, the Bank’s Financing Income grew by 35% to LKR 4.85 billion. Owing to policy rate changes reflecting in higher cost of deposits, the Bank’s Net Financing Income grew marginally to cross the LKR 2 billion mark. Despite this, Total Operating Income recorded a 20% growth to reach LKR 2.69 billion, which was supported by a significant growth in Net Fee and Commission Income as well as Net Trading Income. Net Operating Income grew by 11% to LKR 2.19 billion, after prudentially providing for an increased level of impairment considering current and anticipated market conditions.

Despite headline inflation being in excess of 58% in June 2022, the Bank contained the increase in its operating expenses to 12%. Following this, the Bank recorded a 10% YoY growth in Operating Profit before VAT on Financial Services to reach LKR 781.7 million. The Bank’s aggregate tax contribution of LKR 419.7 million for H1 2022 accounted for 54% of the Bank’s Operating Profit before all taxes.

Owing to consolidation of business activities and decline in private sector credit growth as a result of tight monetary and market liquidity conditions, the Bank’s Customer Advances grew by 5% to close at LKR 79.3 billion while Customer Deposits grew by 8% to close at LKR 103.6 billion. Despite challenging market sentiments, the Bank’s Impaired Financing and Advances (Stage 3) ratio continued to remain well below the industry average and stood at 2.5% at end H1 2022. The Bank’s Total Assets during the 6 months grew by 14% to close at LKR 139.3 billion. The Bank’s Total Capital Ratio stood at a healthy 15.7% as at H1 2022 while its Tier 1 Capital Ratio stood at 13.4%, both well above the minimum regulatory requirement of 12.5% and 8.5% respectively.

Commenting on the Bank’s mid-year performance Managing Director/CEO Mohamed Azmeer said “Having achieved a very strong Q1 performance, owing to the economic and political challenges during the period, our focus was to remain resilient during Q2 by proactively and effectively responding to the environment. I am happy that we were able to maintain our resilient performance in Q2, despite the unprecedented challenges in the external environment. On behalf of the Board and Management of the Bank, I am grateful to the commitment of our staff members in managing the numerous uncertainties and the continued confidence and trust placed on us by our customers. Considering the macroeconomic challenges, the Bank in line with CBSL guidelines, continued to extend moratorium concessions to affected individual and business customers during the last few months. I am also pleased to note that Amana Bank was entrusted with Sri Lanka’s largest dividend distribution recently, which speaks of the trust and confidence we have built in the market over the years supporting top corporates besides our strategy focused on SMEs. Thanks to our unique model of banking which is development focussed, we stand protected and unexposed to many of the elements which has created challenges to the entire Banking industry. We remain confident and positive about the nation’s potential to bounce back from the challenges and stand ready to play an impactful role in enabling growth and enriching lives.”

Amana 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 having a 29.97% shareholding of the Bank. The IsDB Group is an ‘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, Amana Bank is recognised amongst the Top 50 Strongest Islamic Bank’s in the World by The Asian Banker. Amãna Bank does not have any subsidiaries, associates, or affiliated institutions.

Older Posts

Amana Bank collaborates with Havelock City to offer people friendly apartment financing

Amana Bank marks successful Rights Issue with ceremonial CSE market opening

Amana Bank promotes Harindra Obeysekere as Treasury Head

AB Securitas together with Amana Bank introduces Brown Label SSD Concept in Sri Lanka

Amana Bank demonstrates stability and resilience recording a 9 Month PBT of Rs 940 Mn, continuing its growth momentum

Amana Bank engages with OrphanCare Trust to bring a smile to Orphans along with T20 World Cup Excitement

Amana Bank continues to support business customers to overcome economic hardships

OrphanCare launches www.orphancare.org website

Amana Bank partners with UNDP Sri Lanka for emergency relief

Amana Bank’s Resilient Performance Continues