Business

Pan Asia Bank achieves a Post Tax Profit of Rs. 2 bn during first 9 months amid challenges – profit for the quarter soars by 89%

Published

4 years ago

2021/11/4

Net Interest Income – Rs. 6,669 Mn, up by 23% Net Fee and Commission Income – Rs. 1,256 Mn, up by 41% Other Operating Income – Rs. 274 Mn, up by 40% Operating Profits up by 42% to post Rs. 3,342 Mn Profit before Tax – Rs. 2,718 Mn, up by 46% despite increased prudential provisions.

Key Profitability Indicators are among the best in the industry

– Net Interest Margin improves from 4.41% to 4.81%

– Return on Assets (Pre-tax) improves from 1.70% to 1.96%

– Return on Equity (Post-tax) improves from 14.36% to 16.13%

Loans and Advances book reaches Rs. 143 Bn, up by 9%

Customer Deposits reach Rs. 149 Bn, up by 6%

Net Non-Performing Advances Ratio improves from 2.34% to 1.28%

Total Impairment Provision cover reaches 76.10% due to prudential provisioning

The Bank remains highly liquid and well capitalised – all Liquidity and Capital Ratios are well above the regulatory minimums

Pan Asia Banking Corporation PLC reported an impressive performance for the 9 months period ended 30th September 2021 to report a Pre-Tax Profit of Rs. 2,718 Mn and a Post-Tax Profit of Rs. 2,008 Mn with growth rates of 46% and 61% respectively, while demonstrating the resilience amid challenging macro economic conditions. The Bank’s performance was characterised by strength and resilience despite the heightened uncertainty due to the impact of the COVID-19 pandemic.

Against the backdrop of the COVID-19 impact on the Sri Lankan economy, the Bank’s Operating Profit before VAT on Financial Services reached Rs. 3,342 Mn with an increase of 42% reflecting the excellence in core banking performance and the success of cost containment measures evidenced by improvement in all key profitability matrices which now rank among the industry bests. This feat was achieved even after setting aside sizable provision buffers for the probable deterioration in credit quality due to COVID-19 pandemic. The Bank increased its provision buffers for loan losses during the 9 months period sensibly taking into consideration of increased risks and uncertainties due to COVID-19 pandemic through experience adjustments and management overlays. As a result, total impairment charge for the 9 months period ended 30th September 2021 increased by 17%.

The Bank’s Net Interest Income (NII) for the period witnessed an increase of 23% due to significant reduction in financial cost of funds at a rate faster than the drop in interest yields of interest earning assets although extension of debt moratoriums to sectors affected by the COVID 19 pandemic had an adverse impact on NII. Consequently, the Bank’s Net Interest Margin for the period improved to 4.81% from 4.41% reported 9 months ago.

In the meantime, the Bank’s Net Fee and Commission Income recorded a growth of 41% with the rebound in demand for credit due to revival of economic activities during the 9 months period amidst the low interest rate regime despite the adverse impact of lockdowns had and waiver of fees and charges mandated by the industry regulator. Meanwhile, the volatility in foreign exchange rates enabled the Bank to increase its Foreign Exchange Income substantially as reflected in Other Operating Income. On the other hand, the aforementioned currency volatility had a negative impact on the Bank’s Net Trading Income due to mark-to-market losses on forward foreign exchange contracts and currency swaps.

The Bank is committed to revenue maximisation and cost management despite sector vulnerabilities that prevailed since last year. The Bank’s Cost-to-Income Ratio improved from 45.66% to 42.19% within the 9 months period owing to the excellence in core banking performance which is reflected in the noteworthy overall growth in key revenue lines and various strategies and measures taken to contain the increase in overhead costs. The cost management culture embedded across the Bank assisted curtailing Other Operating Expenses by 8%. Meanwhile, increased allocations for staff performance bonuses, spending on development of human capital and staff welfare led to an increase in personnel costs during the reporting period compared to previous period despite the reduction in number of staff.

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Business

Embedding human rights, equity and integrity into business leadership

Published

14 hours ago

2026/03/5

Sahan Weerasooriya

Rathika de Silva, Executive Director

At its 2026 Social Sustainability Programme Kick-Off, the UN Global Compact Network Sri Lanka convened business leaders to advance the translation of global ambition into practical corporate action on inclusion, integrity and human rights.

On 24 February 2026, the UN Global Compact Network Sri Lanka (Network Sri Lanka) convened business leaders at Barefoot Garden Café for its 2026 Social Sustainability Programme Kick-Off, delivered in collaboration with Good Life X.

The gathering did more than introduce a calendar of events. It positioned Sri Lanka’s corporate community within the broader direction of the UN Global Compact’s 2026–2030 global strategy — a strategy anchored in three imperatives: equipping companies to act, catalyzing collective action, and advancing the business case for responsible leadership.

At its core, the 2026 Social Sustainability agenda is designed to move companies from commitment to capability.

Within the Diversity & Inclusion Working Group, this means building practical pathways toward equal pay for equal work and strengthening male allyship as a governance issue rather than a cultural afterthought. It means examining sexual and reproductive health, disability inclusion, and mental health not as employee benefits, but as structural determinants of productivity and retention. It means sharpening strategic communications so inclusion is embedded in brand integrity. It also means applying science-based behavioural change approaches to shift organizational culture in measurable ways.

Across the Business & Human Rights Working Group, equipping companies takes the form of deepened engagement on decent work and living wage implementation, strengthening human rights due diligence processes, and addressing emerging risk areas such as AI and digital rights. It extends to reinforcing business integrity and anti-corruption frameworks, understanding the social dimensions of a just transition, and recognizing the link between child rights, nutrition, and workforce productivity.

Business

Union Bank to raise LKR 3 Bn via Basel III Compliant Debenture Issue

Published

14 hours ago

2026/03/5

Sahan Weerasooriya

Shanka Abeywardene

Union Bank of Colombo PLC announced its proposed Debenture Issue 2026, a strategic move aimed at raising up to LKR 3 billion. This issue is designed to bolster the Bank’s Tier II capital base and provide a robust financial foundation for its upcoming growth initiatives.

The offering consists of Basel III compliant, listed, rated, unsecured, subordinated, redeemable high-yield debentures with Non-Viability Conversion. The instrument has been assigned a rating of BB (lka) by Fitch Ratings (Lanka) Ltd, reflecting the bank’s creditworthiness and the structured nature of the subordinated debt.

Investors can choose from three distinct interest structures starting from a high-yield 13% fixed rate per annum (Type A). This option is paid annually, while Type B offers a 12.5% fixed rate paid semi-annually (12.89% AER). For those seeking market-linked returns, Type C provides a floating rate of the 182-days Treasury Bill rate plus a 400-basis point margin, also paid semi-annually.

The debentures are priced at LKR 100 per unit with a 5-year tenure (2026–2031). The initial issue size is set at 20,000,000 debentures with an option to raise 10,000,000 at the discretion of the Bank and is scheduled to open on 10 March 2026.

Shanka Abeywardene, Chief Financial Officer of Union Bank stated “This debenture issue marks a significant step in the Bank’s journey towards enhanced financial stability. By strengthening its capital adequacy, Union Bank is well-positioned to navigate evolving market conditions while fuelling its long-term strategic objectives for sustainable growth”

Business

Sanjay Kulatunga appointed to WindForce Board

Published

14 hours ago

2026/03/5

Sahan Weerasooriya

Sanjay Kulatunga

WindForce PLC announced the appointment of Sanjay Kulatunga as an Independent, Non-Executive Director to its Board with effect from 03rd March 2026, following the resignation of Dilshan Hettiaratchi. The appointment further strengthens the Company’s governance framework, strategic oversight, and long-term decision-making capabilities.

Kulatunga brings an established track record as a founder, entrepreneur, and senior executive across financial services and export-oriented industries. He is the Chief Executive Officer and Co-Founder of LYNEAR Wealth Management, a boutique investment firm established in 2013, which has since grown to become one of Sri Lanka’s largest private wealth management institutions, serving high-net-worth individuals as well as local and international institutional clients.

Prior to founding LYNEAR, Kulatunga played a pivotal role in the establishment of Amba Research, an investment research offshoring firm rooted in Sri Lanka and now operating as part of Acuity Analytics.

Over the years, he has contributed extensively to several key national institutions. His previous appointments include serving on the Financial Sector Stability Consultative Committee of the Central Bank of Sri Lanka, as well as the Board of Investment of Sri Lanka and the Securities and Exchange Commission of Sri Lanka.