Pan Asia Banking Corporation PLC has crossed Rs 350 billion in total assets for the first time in its 31-year history, reporting a profit after tax of Rs 2.5 billion for the six months ended June 30, up 16 percent from a year earlier.
Total assets grew 15 percent to Rs 354.03 billion, supported by a 14 percent expansion in gross loans and advances to Rs 248.13 billion and a 17 percent rise in customer deposits to Rs 271.24 billion. Net interest income increased 13 percent to Rs 7.07 billion.
Director/CEO Naleen Edirisinghe said profit before tax reached Rs 2.93 billion for the half year, describing the outcome as driven by growth across the bank’s core businesses and supported by “healthy net interest earnings and fee-based income”.
Asset quality improved, with the gross Stage 3 loan ratio falling to 3.97 percent from 4.62 percent at the end of 2025 and the net Stage 3 ratio easing to 1.39 percent from 1.73 percent. The bank increased its impairment charge by 32 percent over the period, which it described as a deliberate strengthening of its provision buffer. Capital and liquidity levels remained above regulatory minimums.
Tax reversal behind the quarterly gain
Reporting on the interim accounts filed with the Colombo Stock Exchange, Daily Mirror said second-quarter net profit rose 28 percent to Rs 1.45 billion from Rs 1.14 billion, but that the bottom-line growth masked a weaker operating performance.
Profit before tax for the quarter fell 11 percent to Rs 1.28 billion, while operating profit before taxes on financial services declined 9 percent. The bank booked an income tax credit of Rs 168.1 million for the quarter, against a charge of Rs 307.4 million a year earlier, attributing the lower half-year tax charge primarily to “the reversal of excess income tax provisions relating to prior years”.
Funding costs also weighed. Quarterly interest expenses climbed 32 percent against a 24 percent rise in interest income, narrowing the half-year net interest margin to 4.29 percent from 4.55 percent. Pan Asia attributed that mainly to lower returns from its government securities portfolio. Trading gains fell 55 percent to Rs 83 million.
The results are the first half-year figures released since the bank appointed B.D.A. Perera as Chairman with effect from August 3. Pan Asia had reported Rs 1.65 billion in pre-tax profit for the first quarter.