Profit before Tax for the year Rs. 2,328 Mn, up by 258%  

Net Interest Income for the year Rs. 10,302 Mn, up by 9%

Net Trading Gains for the year Rs. 1,027 Mn, up by 823% 

Total Assets Rs. 233 Bn, grew by 12% 

Operating Profit for the year Rs. 3,326 Mn, up by 202% 

Customer Deposit base reaches Rs. 175 Bn, grew by 8%  

Return on Assets (Pre-tax) - 1.06%, Return on Equity - 8.62%

The Board of Directors proposed a First and Final Cash Dividend of Rs. 0.25 per share 

The Bank remains well capitalised and liquid:

- Tier 1 Capital Ratio 16.45% (Regulatory Minimum - 8.50%) 

- Total Capital Ratio 18.52% (Regulatory Minimum - 12.50%)

- Rupee LCR 520.84%, All Currency LCR 458.18% (Regulatory Minimum - 100%)

- Statutory Liquid Asset Ratio (SLAR) - 38.55%

Pan Asia Banking Corporation PLC reflected a steady performance amidst multitude of adversities emerging from challenging macro-economic conditions as the Bank reported its financial performance during 2023, which showed judicious portfolio management and prudency exercised in dealing with possible fallout on its asset quality in challenging times. The Bank reported a Pre-tax Profit of Rs. 2,328 Mn for the year ended 31st December 2023, which is 258% increase compared to corresponding period last year, supported by improved net interest income, increased trading gains from government securities and reduced exchange losses. 

The Sri Lankan economy has experienced some positive signs of gradual economic recovery and a measure of stability in macro-economic factors compared to the previous year, with the appreciation of LKR against USD and the IMF bailout followed by the Domestic Debt Optimization (DDO) announcement. The multiple economic scenario models used regarding collective impairment in 2022 were continued in 2023 to ensure that adequate buffers were in place to absorb any potential credit risk that could arise in the future. The allowance for overlays applied in previous year was continued and maintained during 2023 too. Meanwhile, the Bank managed to end the year with healthy credit quality matrices due to improved credit underwriting standards and concerted collection & recovery efforts despite the contraction in the loan book during 2023 which impacted the Bank’s Stage 3 Loan Ratio adversely. 

Furthermore, the Bank increased impairment provision buffers held regarding investments in International Sovereign Bonds of Government of Sri Lanka (SLISBs) further during 2023 with the expectation of possible adverse outcomes of the on-going government External Debt Restructuring (EDR) programme. The Bank recognised an impairment charge of nearly Rs. 2 Bn regarding International Sovereign Bonds during 2023.

The interest income for the year 2023 rose by 39% due to the high interest rates that prevailed during the period under review compared to corresponding period of the last year and the re-pricing effect of facilities in response to the market conditions. Further, the growth in interest income was supported by the increased interest income from Rupee denominated securities of the Government of Sri Lanka (T-Bills & Bonds) due to increased investments and high interest rates offered on such new investments compared to the previous year. Consequently, the net interest income increased by 9% in 2023 compared to the last year.

The Bank reported a Profit after Tax (PAT) for the year of 2023 of Rs. 1,855 Mn having dropped by 7% compared 2022 since the prior year PAT was positively impacted by a one-off, sizeable, deferred tax reversal although the bank’s operating profitability marked a three-fold figure rise during 2023. The Bank reported an Earnings Per Share (EPS) for the year 2023 of Rs. 4.19. Further, the Board of Directors have proposed a first and final cash dividend of Rs. 0.25 per share.

The Bank reported a Net Interest Margin (NIM) of 4.67% for the year 2023 having fallen marginally.  Meanwhile, the Bank reported a Return on Equity (ROE) of 8.62% and a Pre-Tax Return on Assets (ROA) of 1.06% for the year under review. Meanwhile, the Bank’s Net Asset Value Per Share as of 31st December 2023 stood at Rs. 51.06 after an appreciation of 10%.

The Bank’s total assets experienced an increase of 12% In the meantime,Bank’s total customer deposits recorded a growth of 8% to reach Rs. 175 Bn as of 31st December 2023. 

The Bank maintains all its capital and liquidity ratios well above the regulatory minimum standards. The Bank’s Tier 1 Capital Ratio and Total Capital Ratio as of 31st December 2023 stood at 16.45% and 18.52% respectively. Further, the Bank’s Leverage Ratio stood at 7.60% as of 31st December 2023. 

The Total Bank Level Statutory Liquid Assets Ratio (SLAR) as of 31st December 2023 stood at 38.55%. Meanwhile, the Bank’s Liquidity Coverage Ratio (LCR) under BASEL III stood well above the statutory minimums. The Bank maintained LCR of 458.18% and 520.84% in All Currencies and Rupees respectively.

                                                                                                                                                                                                                                       Commenting on the Bank’s performance, Naleen Edirisinghe, Director and CEO of Pan Asia Bank said, “Our resounding performance for the year 2023 demonstrates that we are well on track to meet our ambitious targets post economic crisis. A growth in PBT of over 250% for year 2023 affirms the efficacy of our strategy which will be accelerated for generating greater earnings from core banking while infusing operational efficiencies. Despite challenging market conditions, Pan Asia Bank leveraged on its spirit of innovation and can-do spirit as one team to deliver this encouraging performance which sets the stage for the coming year”.

Pan Asia Bank rose 5 places in the Business Today’s Top 40 business organizations ranking for 2022-2023 based on criteria such as portfolio, profits and risks taken, resilience, passion and how well challenges are met. The Bank was also selected by LMD as one of the ‘Most Awarded Entities’ and ‘Most Respected Entities in Sri Lanka’ in 2023. In addition, Pan Asia Bank was bestowed with gold and bronze awards at the Effie 2023 and a Black Dragon Award at the 2023 Dragons of Asia, International Awards.

Recording consistent growth year after year, Pan Asia Bank is strongly positioned as the ‘Truly Sri Lankan Bank’, marking an illustrious journey that has promoted financial security and fulfilled the aspirations of its customers while supporting the prosperity of the nation. 

Photo caption: Aravinda Perera- Chairman & Naleen Edirisinghe - Director CEO of Pan Asia Bank