Amana Bank reports robust December quarter performance

Amana Bank PLC, the only bank operating in Sri Lanka under Islamic financing principles reported some robust financial performance for the three months ended in December 2025 as well as for the full financial year.

The bank reported a net financing income of Rs.2.23 billion for the October – December period, up 28 percent from the same period in 2024.

Contrary to how most of the other banks did for the quarter, Amana Bank managed to slightly increase its net financing margin to 4.30 percent from 4.00 percent at the start of the year.

The Amana Bank saw its customer advances rising by Rs.38.99 billion at a growth rate of 33.2 percent in the year. Leases grew by Rs.6.48 billion while the gold facilities rose by 3.09 billion in 2025.

The bank also provided Rs.527.91 million for possible defaults in customer advances in the quarter, up from Rs.96.59 million in the same period in 2024.

The bank improved its asset quality as the Stage 3 or impaired financing and advance ratio slid to 1.2 percent from 1.3 percent at the beginning of the year.

Under this backdrop, the Amana Bank reported earnings of Rs.873.74 million for the December 2025 quarter, up 33 percent from the same period in 2024.

The earnings were further aided by fee incomes of Rs.277.77 million, down 3 percent from a year ago.

For the full year, the bank reported earnings of Rs.4.50 a share or Rs.2.48 billion, up 40 percent.

The bank’s share ended 8.33 percent down at Rs.27.50 amid a large-scale sell-off in the market yesterday in response to the conflict in the Middle East and its possible economic fallout.

Amana Bank raised deposits worth of Rs.17.67 billion in 2025, at a growth rate of 11.4 percent.

While IB Growth Fund (Labuan) LLP is the biggest shareholder in Amana Bank with a stake of 24.91 percent, the high net-worth investor firm, Senthilverl Holdings had 19.75 percent stake being the bank’s second largest shareholder.

source: Daily Mirror