Amãna Bank : INTERIM FINANCIAL STATEMENT AS AT 31ST MARCH 2024

Amana Bank PLC (PB 3618 PQ)

Interim Financial Statements

31 March 2024

Vision

To be an admired leader in providing equitable financial solutions,

not limited to numerics, but also in earning the trust of our

customers, employees, shareholders and country.

Mission

To adopt a unique and people friendly approach in banking with a passion for continuous improvement, enabling growth and enriching lives.

Amana Bank surges ahead with aggressive outlook for 2024

• Records 91% growth in Q1 PAT
• Advances up by 8%

Amana Bank continued its robust performance trend as it completed a successful first quarter recording a notable 73% YoY increase in Profit Before Tax to reach LKR 734.5 million compared to LKR

423.5 million booked a year back while Profit After Tax surged by 91% YoY to post LKR 422.2 million as against LKR 220.7 million recorded in Q1 2023.

The Bank's top line witnessed a marginal decline to close at LKR 4.1 billion, owing to the drop in market rates in line with the Central Bank's economic revival policies. However by maintaining a healthy Financing Margin of 4.5%, Net Financing Income improved to close at LKR 1.8 billion.

The Bank's Fee and Commission Income and Trading Income grew YoY by 15% and 11% to close at LKR

285.9 million and LKR 275.1 million respectively resulting in the Bank's Total Operating Income reaching LKR 2.4 billion. After accounting for impairment charges, which showed a reduction compared to Q1 2023, reflecting prudent risk management, customer engagement and resultant revival, the Bank's Net Operating Income closed at LKR 2.1 billion reflecting a healthy 36% YoY growth.

The Bank continued to maintain a healthy cost to income ratio of 48%, resulting in a 51% YoY growth in Operating Profit before VAT on Financial Services to post LKR 993.6 million. The Bank's aggregate tax contribution of LKR 571.4 million accounted for a significant 58% of the Bank's Operating Profit before all taxes.

Owing to growing acceptance of its development focused banking model, the Bank's Advances grew by a commendable 8% to close at LKR 97 billion. Local currency deposits grew by over LKR 1 billion during the quarter but the overall portfolio remained at LKR 132 billion after considering effects of Rupee appreciation against the US Dollar for foreign currency deposits. The Bank continued to grow its advance base while maintaining an industry low Stage 3 Impaired Financing Ratio of 1.6%. The Bank closed the first quarter with Total Assets of LKR 161.6 billion.

Given the strong financial performance in the quarter, Amana Bank's ROE and ROA grew to 7.8% and 1.8% respectively compared to 6.2% and 1.2% respectively to the corresponding period of 2023. As at 31 March 2024, Amana Bank's Common Equity Tier 1 and Total Capital ratios stood at 15.6% and 18.3% respectively, well above the regulatory minimum requirement of 7% and 12.5%.

Commenting on the Bank's first three months performance Chairman Asgi Akbarally said "Amana Bank has continued to demonstrate its resilience with a strong Q1 performance in the backdrop of a challenging yet progressively improving economic landscape. This promising start serves as a catalyst for continued future growth and prosperity. I am thankful for the management and our staff for their dedication and unwavering commitment, which has been instrumental in ensuring Amana Bank's continued success."

Also sharing his sentiments Managing Director/CEO Mohamed Azmeer stated "The strong financial performance in the first quarter affirms Amana Bank's aggressive outlook towards 2024. Our commitment to providing development focussed and people friendly banking solutions which is also

in sync with the revival efforts of the Central Bank, coupled with Bank's prudent risk management framework, has driven our advances growth trajectory, which I am confident will continue through the rest of the year. I would like to commend our team for their hard work and dedication in achieving these excellent results as well as for their commitment towards our mission of enabling growth and enriching lives amongst all Sri Lankans through our unique banking model".

Through a Rights Issue in Q4 2023, the Bank successfully raised its capital to cross Rs 20 billion thereby meeting the enhanced minimum capital requirement in line with regulatory directions as well as fuelling the Bank's ambitious growth and expansion plans.

The Bank also recently announced its decision to consolidate the shares of the Bank in the proportion of consolidating 10 existing ordinary shares to 1 ordinary share subject to shareholder and regulatory approval. There will be no change in the stated capital of the bank as a result of the consolidation.

Amãna Bank PLC is a stand-alone institution licensed by the Central Bank of Sri Lanka and listed on the Colombo Stock Exchange, with Jeddah-based IsDB Group being the principal shareholder of the Bank. The IsDB Group is a 'AAA' rated multilateral development financial institution with a membership of 57 countries. Testifying its position as a leading practitioner of the non-interest based banking model, Amãna Banks continued to be recognised amongst the Top 100 Strongest Islamic Bank's in the World by The Asian Banker.

Amãna Bank does not have any subsidiaries, associates, or affiliated institutions apart from its engagement with OrphanCare as its Founding Sponsor.

Amãna Bank PLC (PB 3618 PQ)

STATEMENT OF PROFIT OR LOSS

FOR THE PERIOD ENDED

	FOR THE QUARTER ENDED
		31 MARCH
	2024	2023	Change
	(Rs. '000)	(Rs. '000)	%
Financing Income	4,142,046	4,407,863	(6%)
Financing Expenses	(2,346,047)	(2,636,681)	(11%)
Net Financing Income	1,795,999	1,771,182	1%
Net Fee and Commission Income	285,897	247,967	15%
Net Trading Income	275,098	247,488	11%
Net Gains / (Losses) from Financial Investments at Fair Value	2,284	8,878	(74%)
through Profit or Loss
Net Gains / (Losses) from Derecognition of Financial Assets	(166)	(55)	(202%)
Net Other Operating Income	83	982	(92%)
Total Operating Income	2,359,195	2,276,442	4%
Impairment Charges	(243,285)	(723,678)	(66%)
Net Operating Income	2,115,910	1,552,764	36%
Personnel Expenses	561,892	434,787	29%
Depreciation and Amortisation of Property, Plant, Equipment and	79,320	67,698	17%
Right-of-Use Assets
Other Operating Expenses	481,087	394,313	22%
Total Operating Expenses	1,122,299	896,798	25%
Operating Profit Before VAT on Financial Services & Social	993,611	655,966	51%
Security Contribution Levy
VAT on Financial Services & Social Security Contribution Levy	(259,141)	(232,502)	11%
Profit Before Tax	734,470	423,464	73%
Tax Expense	(312,245)	(202,790)	54%
Profit for the Period	422,225	220,674	91%
Earnings Per Share - Basic/Diluted (in Rs.)	0.08	0.04	91%

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s Amãna Bank PLC (PB 3618 PQ)

STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED

	FOR THE QUARTER ENDED
		31 MARCH
	2024	2023	Change
	(Rs. '000)	(Rs. '000)	%
Profit for the Period	422,225	220,674	91%
Other Comprehensive Income/(Loss)
Other Comprehensive Income not to be Reclassified to Profit or Loss in
Subsequent Periods:
Financial Assets - Fair Value through Other Comprehensive Income:
Net Gain / (Loss) on Financial Assets - Fair Value through Other	(5,402)	(5,402)	-
Comprehensive Income
	(5,402)	(5,402)	-
Net Comprehensive Income not to be Reclassified to Profit or Loss in	(5,402)	(5,402)	-
Subsequent Periods:
Other Comprehensive Income / (Loss) for the Period Net of Tax	(5,402)	(5,402)	-
Total Comprehensive Income for the Period	416,823	215,272	94%

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Amãna Bank PLC (PB 3618 PQ)

STATEMENT OF FINANCIAL POSITION

AS AT

	31 MAR 2024	31 DEC 2023	Change
		(AUDITED)
		%
	(Rs. '000)	(Rs. '000)
Assets
Cash and Cash Equivalents	9,688,694	11,100,863	(13%)
Balances with Central Bank of Sri Lanka	6,769,422	9,446,863	(28%)
Placements with Banks	40,496,208	42,474,570	(5%)
Placements with Licensed Finance Companies	81	81	-
Derivative Financial Assets	408,863	194,267	110%
Financial Assets Designated at Fair Value through Profit or Loss	34,875	8,994	288%
Financial Assets at Amortised Cost - Financing and Receivables to Other Customers	96,912,814	89,658,060	8%
Financial Assets Measured at Fair Value through Other Comprehensive Income	313,599	319,000	(2%)
Other Assets - Financial	2,585,651	2,006,909	29%
Property, Plant, Equipment And Right-of-Use Assets	2,780,740	2,775,396	0%
Intangible Assets	363,498	379,309	(4%)
Other Assets - Non Financial	446,600	303,034	47%
Deferred Tax Assets	784,430	784,430	-
Total Assets	161,585,475	159,451,776	1%
Liabilities
Due to Banks	335,657	321,167	5%
Derivative Financial Liabilities	121,414	948	12,707%
Financial Liabilities at Amortised Cost - Due to Depositors	131,906,108	132,937,607	(1%)
Other Liabilities - Financial	5,946,614	3,391,138	75%
Current Tax Liabilities	805,448	722,144	12%
Dividend Payable	6,326	6,326	-
Retirement Benefit Liability	133,767	130,416	3%
Other Liabilities - Non Financial	209,849	245,446	(15%)
Total Liabilities	139,465,183	137,755,192	1%
Shareholders' Funds
Stated Capital	17,633,461	17,633,461	-
ESOP Reserve	57,864	50,979	14%
Statutory Reserve Fund	266,441	266,441	-
Revaluation Reserve	1,007,191	1,007,191	-
Fair Value Reserve	66,486	71,888	(8%)
Retained Earnings	3,088,849	2,666,624	16%
Total Equity	22,120,292	21,696,584	2%
Total Liabilities and Shareholders' Funds	161,585,475	159,451,776	1%
Net Asset Value per Ordinary Share	4.01	3.94
Commitments and Contingencies	52,659,384	40,739,750
Memorandum Information
Number of Employees	889	886
Number of Branches	33	33

CERTIFICATION:

I certify that these Financial Statements comply with the requirements of the Companies Act No. 07 of 2007.

BBBBBBBBBBBB

Sgd

M. Ali Wahid

Chief Financial Officer

13 May 2024

We, the undersigned, being Chairman and Managing Director / Chief Executive Officer of Amana Bank PLC certify jointly that:-

1. the above statements have been prepared in compliance with the format and definitions prescribed by the Central Bank of Sri Lanka and Rule 7.4 of Colombo Stock Exchange.
2. the information contained in these statements have been extracted from the unaudited Financial Statements of the Bank unless indicated as audited.

Sgd	Sgd
Ali Asghar Akbarally	Mohamed Azmeer
Chairman	Managing Director / CEO
13 May 2024	13 May 2024

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Amãna Bank PLC (PB 3618 PQ)

STATEMENT OF CHANGES IN EQUITY

			Stated	ESOP	Statutory	Revaluation	Fair Value	Retained	Total
			Capital	Reserve	Reserve	Reserve	Reserve	Earnings
					Fund
		As at 31 December 2022 (Audited)	11,348,821	-	197,102	1,008,277	85,393	1,721,762	14,361,355
		Profit for the three months ended 31 March 2023	-	-	-	-	-	220,674	220,674
		Total Comprehensive Income for the three months ended 31 March 2023	-	-	-	-	(5,402)	-	(5,402)
		As at 31 March 2023	11,348,821	-	197,102	1,008,277	79,991	1,942,436	14,576,627
		Profit for the nine months ended 31 December 2023	-	-	-	-	-	1,166,103	1,166,103
		Total Comprehensive Income for the nine months ended 31 December 2023	-	-	-	-	(8,103)	(3,503)	(11,606)
		Scrip Dividend - 2023	283,963	-	-	-	-	(283,963)	-
		WHT on Scrip Dividend	-	-	-	-	-	(50,111)	(50,111)
		Share Issue Expenses		-	-	-	-	(36,085)	(36,085)
		Rights Issue	6,000,677	-	-	-	-	-	6,000,677
		FairValue of ESOP	-	50,979	-	-	-	-	50,979
		Transfers to Statutory Reserve Fund	-	-	69,339	-	-	(69,339)	-
		Transferred to Retained Earnings	-	-	-	(1,086)	-	1,086	-
		As at 31 December 2023 (Audited)	17,633,461	50,979	266,441	1,007,191	71,888	2,666,624	21,696,584
		Profit for the three months ended 31 March 2024	-	-	-	-	-	422,225	422,225
		Total Comprehensive Income for the three months ended 31 March 2024	-	-	-	-	(5,402)	-	(5,402)
		Share-Based Payment Expenses	-	6,885	-	-	-	-	6,885
		As at 31 March 2024	17,633,461	57,864	266,441	1,007,191	66,486	3,088,849	22,120,292

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Amãna Bank PLC (PB 3618 PQ)

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED

FOR THE YEAR ENDED

31 MARCH

		2024	2023
		(Rs. '000)	(Rs. '000)
			(AUDITED)
	Cash Flows from Operating Activities
	Financing Income Received	4,193,783	4,596,270
	Fees and Commission Received	285,731	247,782
	Financing Expenses Paid	(2,327,421)	(2,246,142)
	Foreign Exchange Income	275,098	247,488
	Gratuity Payments Made	(5,202)	(6,827)
	Payments to Employees and Suppliers	(1,286,682)	(992,691)
	Operating Profit/(Loss) before Changes in Operating Assets and Liabilities	1,135,307	1,845,880
	(Increase) / Decrease in Operating Assets
	Financing and Receivable to Other Customers	(7,477,885)	2,466,219
	Other Assets	(689,517)	(241,332)
	Balance with Central Bank of Sri Lanka	2,677,441	(176,283)
	Increase / (Decrease) in Operating Liabilities
	Due to Other Customers	(932,857)	2,572,181
	Due to Banks	14,490	(2,525,213)
	Other Liabilities	2,356,165	342,040
	Net Cash Flow from Operating Activities before Income Tax	(2,916,856)	4,283,492
	Income Tax Paid	(228,942)	(169,286)
	Net Cash From / (Used In) Operating Activities	(3,145,798)	4,114,206
	Cash Flows From/(Used In) Investing Activities
	Acquisition of Property, Plant & Equipment	(67,776)	(40,363)
	Proceeds from Sale of Property, Plant and Equipment	-	-
	Acquisition of Intangible Assets	(1,077)	(5,278)
	Investments in Placements with Banks	-	(3,082,752)
	Investments in Placements with Licensed Finance Companies	1,825,999	(1,000,001)
	Financial Assets Recognised through Profit or Loss - Measured at Fair Value	(23,597)	12,917
	Dividend Received from Financial Assets	83	982
	Net Cash From / (Used In) Investing Activities	1,733,632	(4,114,495)
	Cash Flows From / (Used In) Financing Activities
	Rights Issue of Shares
	Share Issue Expenses	-	-
	Dividend Paid	-	-
	Net Cash From / (Used In) Financing Activities	-	-
	Net Increase / (Decrease) in Cash and Cash Equivalents	(1,412,166)	(289)
	Cash and Cash Equivalents at the Beginning of the Year	11,107,767	22,607,924
	Cash and Cash Equivalents at the End of the Period - Gross of Allowance for Impairment	9,695,601	22,607,635
	CASH AND CASH EQUIVALENTS
		2024	2023
		(Rs. '000)	(Rs. '000)
	Cash in Hand	6,094,838	4,801,536
	Balances with Banks	3,600,763	17,806,099
		9,695,601	22,607,635
	Less: Allowance for Impairment	(6,907)	(6,333)
	Total	9,688,694	22,601,302

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Amãna Bank PLC (PB 3618 PQ)

NOTES TO THE FINANCIAL STATEMENTS

01. ANALYSIS OF FINANCIAL INSTRUMENTS BY MEASUREMENT BASIS

Financial instruments are measured on an ongoing basis either at fair value or at amortised cost. The summary of significant accounting policies stated in the Annual Financial Statements describes how the classes of financial instruments are measured, and how income and expenses, including fair value gains and losses, are recognised. The following table analyses the carrying amounts of the financial instruments by category as defined in SLFRS 9 and by headings of the Statement of Financial Position.

				RUPEES IN THOUSANDS
				FAIR VALUE
		FAIR VALUE		TOTAL
		AMORTIZED	THROUGH OTHER
		THROUGH PROFIT
		COST	COMPREHENSIVE	AS AT 31.3.2024
		OR LOSS
			INCOME
	Financial Assets
	Cash and Cash Equivalents	-	9,688,694	-	9,688,694
	Balances with Central Bank of Sri Lanka	-	6,769,422	-	6,769,422
	Placements with Banks	-	40,496,208	-	40,496,208
	Placements with Licensed Finance Companies	-	81	-	81
	Derivative Financial Assets	408,863	-	-	408,863
	Financial Assets Designated at Fair Value through Profit or Loss	34,875	-	-	34,875
	Financial Assets at Amortised Cost - Financing and Receivables to Other Customers	-	96,912,814	-	96,912,814
	Financial Assets measured at Fair Value through Other Comprehensive Income	-	-	313,599	313,599
	Other Assets - Financial	-	2,585,651	-	2,585,651
	Total Financial Assets	443,738	156,452,870	313,599	157,210,207
	Financial Liabilities
	Due to Banks	-	335,657	-	335,657
	Derivative Financial Liabilities	121,414	-	-	121,414
	Financial Liabilities at Amortised Cost - Due to Depositors	-	131,906,108	-	131,906,108
	Other Liabilities - Financial	-	5,946,614	-	5,946,614
	Total Financial Liabilities	121,414	138,188,379	-	138,309,793
		FAIR VALUE		FAIR VALUE	TOTAL
		AMORTIZED	THROUGH OTHER
		THROUGH PROFIT
		COST	COMPREHENSIVE	AS AT 31.12.2023
		OR LOSS
			INCOME
				(AUDITED)
	Financial Assets
	Cash and Cash Equivalents	-	11,100,863	-	11,100,863
	Balances with Central Bank of Sri Lanka	-	9,446,863	-	9,446,863
	Placements with Banks	-	42,474,570	-	42,474,570
	Placements with Licensed Finance Companies	-	81	-	81
	Derivative Financial Assets	194,267	-	-	194,267
	Financial Assets Designated at Fair Value through Profit or Loss	8,994	-	-	8,994
	Financial Assets at Amortised Cost - Financing and Receivables to Other Customers	-	89,658,060	-	89,658,060
	Financial Assets measured at Fair Value through Other Comprehensive Income	-	-	319,000	319,000
	Other Assets - Financial	-	2,006,909	-	2,006,909
	Total Financial Assets	203,261	154,687,346	319,000	155,209,607
	Financial Liabilities
	Due to Banks	-	321,167	-	321,167
	Derivative Financial Liabilities	948	-	-	948
	Financial Liabilities at Amortised Cost - Due to Depositors	-	132,937,607	-	132,937,607
	Other Liabilities - Financial	-	3,391,138	-	3,391,138
	Total Financial Liabilities	948	136,649,912	-	136,650,860
02. FINANCING AND RECEIVABLES TO OTHER CUSTOMERS
				RUPEES IN THOUSANDS
	ANALYSIS OF FINANCING AND RECEIVABLES TO OTHER CUSTOMERS			31.3.2024	31.12.2023
					(AUDITED)
	Gross Financing and Receivables to Other Customers			103,065,092	95,587,204
	Accumulated Impairment
	Stage 1			(1,295,608)	(1,131,910)
	Stage 2			(2,535,869)	(2,675,414)
	Stage 3			(2,320,801)	(2,121,820)
	Net Financing and Receivables to Other Customers			96,912,814	89,658,060

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Amãna Bank PLC (PB 3618 PQ)

NOTES TO THE FINANCIAL STATEMENTS

ANALYSIS OF FINANCING AND RECEIVABLES TO OTHER CUSTOMERS - (Contd…)

FINANCING AND RECEIVABLES TO OTHER CUSTOMERS - BY PRODUCT

RUPEES IN THOUSANDS

By Product - Domestic Currency	31.3.2024	31.12.2023
		(AUDITED)
Overdraft	10,523,953		8,881,574
Trade Finance	612,568	637,338
Lease Receivables	6,457,046	5,551,287
Staff Facilities	824,400	715,175
Term Financing	61,692,425	62,347,061
Gold Facilities	11,536,787	11,744,010
Others	393,536	594,422
Sub Total	92,040,715	90,470,867
By Product - Foreign Currency
Overdraft	30,553	32,586
Term Financing	9,469,308	3,944,462
Trade Finance	1,463,244	1,009,372
Others	61,272	129,917
Sub Total	11,024,377	5,116,337
Total	103,065,092	95,587,204

03. IMPAIRMENT ALLOWANCE FOR FINANCING AND RECEIVABLES TO OTHER CUSTOMERS

A reconciliation of the allowance for impairment losses for Financing and Receivables to Other Customers, under SLFRS 9 is as follows:

					RUPEES IN THOUSANDS
	STAGE 1		STAGE 2		STAGE 3	TOTAL IMPAIRMENT
ECL allowance as at 1 January 2024 under SLFRS 9	1,131,910	2,675,414	2,121,820		5,929,144
Charge/(Write Back) for the year	163,698	(139,545)	198,981		223,134
Amounts written off	-	-	-		-
As at 31 March 2024	1,295,608	2,535,869	2,320,801		6,152,278
					RUPEES IN THOUSANDS
	STAGE 1		STAGE 2		STAGE 3	TOTAL IMPAIRMENT
							(AUDITED)
ECL allowance as at 1 January 2023 under SLFRS 9	980,928	1,711,996	1,226,947		3,919,871
Charge/(Write Back) for the year	150,982	963,418	997,123		2,111,523
Amounts written off	-	-	(102,250)		(102,250)
As at 31 December 2023	1,131,910	2,675,414	2,121,820		5,929,144

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