Pan Asia Bank crosses Rs. 350 Bn assets as profits rises 16% to Rs. 2.5 Bn

Pan Asia Banking Corporation PLC reported a strong financial performance for the six months ended 30 June 2026, posting a Profit After Tax (PAT) of Rs. 2.5 billion. The Bank's results were driven by continued business momentum, reflected in a 13% growth in Net Interest Income and a 28% increase in Net Fee and Commission Income compared to the corresponding period in 2025.

Demonstrating a prudent and forward-looking risk management approach, Pan Asia increased its impairment charge by 32% during the year under review. This strategic measure further strengthened the Bank’s provision buffer, ensuring greater resilience and preparedness to navigate potential market challenges and unforeseen economic disruptions.

Demonstrating its continued growth trajectory, the Bank's total asset base surpassed Rs. 350 billion for the first time in its history, marking a significant milestone.

The Bank reported total interest income of Rs. 18.21 billion during the first half of 2026, representing a healthy year-on-year growth of 21%.

Interest expense increased by 27% to Rs. 11.13 billion compared to the corresponding period of 2025, reflecting growth in deposits and borrowings, coupled with the upward adjustment in interest rates across the industry amidst evolving global economic conditions and geopolitical uncertainties.

Despite these market-related headwinds, the Bank demonstrated the resilience and diversity of its earnings profile, recording a total operating income of Rs. 8.68 billion, an increase of 9% over the corresponding period of 2025.

Taxes and levies on financial services increased by 6% during the period, reflecting the Bank's improved operating profitability and continued business growth.

The Bank recorded a 16% year‑on‑year increase in Profit After Tax in 1H 2026, reflecting strong underlying earnings momentum. The Net Interest Margin (NIM) was sustained at a healthy level, supported by effective balance sheet management and stable funding dynamics.

Fair value losses were recorded on government securities classified under FVOCI, mainly Rupee Treasury Bills and Treasury Bonds, due to increases in market interest rates during the period.

The Bank achieved a significant milestone in June 2026, surpassing a total asset base of Rs. 350 billion for the first time in its 31-year history. Total assets grew by 15% year-on-year, reflecting sustained business momentum and the successful execution of the Bank's growth strategy.

Chairman B. D. A. Perera stated: "The Bank achieved meaningful growth in earnings while further expanding its lending and deposit franchises, reinforcing its competitive position within the banking industry."

"During the period under review, total assets exceeded Rs. 354 billion, supported by strong growth in both advances and customer deposits. These results were achieved while maintaining healthy capital and liquidity levels and upholding prudent risk management standards. Such performance underscores the Bank's ability to grow sustainably while preserving financial resilience."

Director/CEO Naleen Edirisinghe commented on the Bank's financial performance as follows: "This achievement was driven by growth across our core banking businesses, supported by healthy net interest earnings and fee-based income."

"Our lending portfolio continued to expand across the corporate, SME, and retail banking segments, reflecting increased customer demand and our ability to meet diverse financing requirements. Customer deposits also recorded strong growth, further strengthening the Bank's funding base and demonstrating the confidence customers place in Pan Asia Bank."

Picture: B D A Perera, Chairman and Naleen Edirisinghe Director/CEO of Pan Asia Bank