Pan Asia Banking Corporation PLC’s September-quarter net profit rose 25 per cent to Rs 1.09 billion, helped by an impairment reversal, while total assets grew 22 per cent since the start of the year to Rs 374.45 billion.
The quarterly figure compares with Rs 872.5 million a year earlier, the Daily Mirror reported. Earnings per share rose to Rs 2.47 from Rs 1.97.
The quarter
An impairment reversal of Rs 367.2 million, against a charge of Rs 193.4 million a year earlier, lifted pre-tax profit 25 per cent to Rs 1.78 billion.
Funding costs ran well ahead of lending income. Interest income rose 36 per cent to Rs 10.41 billion, but interest expenses climbed 55 per cent to Rs 6.81 billion, leaving net interest income up a more modest 11 per cent at Rs 3.61 billion. Net fee and commission income was broadly flat, edging up 1 per cent to Rs 717.1 million.
Total operating income rose 3 per cent to Rs 4.25 billion while operating expenses rose 12 per cent to Rs 2.29 billion.
Nine months
For the first nine months, net profit increased 19 per cent to Rs 3.59 billion, with earnings per share rising to Rs 8.12. Cumulative net interest income grew 12 per cent to Rs 10.68 billion, and net fee and commission income rose 17 per cent to Rs 2.18 billion — growth the bank attributed to lending, trade finance, card usage and higher transaction volumes.
Two measures moved against the bank. Its nine-month net interest margin narrowed to 4.16 per cent from 4.55 per cent, and the cost-to-income ratio rose to 51.49 per cent from 48.94 per cent. A reversal of excess tax provisions from previous years also supported cumulative earnings.
The bank said lower impairment charges reflected improved credit quality, recovery efforts and favourable changes in economic assumptions, with refinements to its expected credit loss models also affecting impairment assessments. Treasury income came under pressure from rising government securities yields, which reduced gains from trading and investment securities sales.
Balance sheet
Total assets increased by Rs 66.43 billion, or 22 per cent, from end-December to Rs 374.45 billion at 30 September. Net loans and advances expanded 17 per cent to Rs 243.45 billion, and customer deposits grew 19 per cent to Rs 274.89 billion.
Asset quality improved. The gross Stage 3 loan ratio fell to 3.67 per cent from 4.62 per cent at end-2025, and the net ratio to 1.44 per cent from 1.73 per cent, with provision coverage at 60.87 per cent.
Return on equity stood at 15.25 per cent and pre-tax return on assets at 1.83 per cent. The Common Equity Tier 1 capital ratio was 14.34 per cent.
Hiru News, reporting the same results, notes the bank is now approaching the Rs 375 billion asset mark and attributes the performance to steady growth in lending, the deposit base and fee-based income alongside improving asset quality.
The bank’s chairman is B.D.A. Perera and its chief executive Naleen Edirisinghe.
A note on an older filing that is not this one
A search for these results also returns an island.lk report headlined “Pan Asia Bank marks 30 years with outstanding nine-month financial performance with a PAT of over Rs. 3 billion.” That article is dated 29 October 2025 and covers the 2025 nine-month results, not these.
The two are easy to confuse: this year’s nine-month post-tax profit of Rs 3.59 billion is 19 per cent above last year’s, which places the 2025 figure at about Rs 3.02 billion — so “over Rs 3 billion” describes both years. This desk has not cited it.
Not reported
Neither filing gives the bank’s liquidity coverage ratio, its total capital ratio, or a breakdown of the loan book by sector. Neither carries direct comment from the chairman or chief executive on the results, and neither states a dividend decision.
