Business News from Sri Lanka: Amana Bank, having paid its inaugural dividend in 2018, has now announced an interim dividend for the Financial Year 2019. The total dividends of over Rs.200 million, translating to 8 cents per share, is scheduled to be paid on 11 October 2019. The Bank’s dividend declaration works out to a dividend yield of approximately 3% at current market prices, which is comparable to the overall market dividend yield of 3.35% and the Banking Sector dividend yield of 3.4%.
The Bank earned a Profit After Tax of Rs 556 million during 2018, while Profit After Tax for 1H 2019 stood at Rs 289 million. Net Asset Value of the Bank as at 30 June 2019 stood at Rs 4.75 with a Price to Book Value (PBV) Ratio of 0.57 times while the Banking sector PBV is at 0.62 times. The 2019 dividend is an increase of 14% compared to the dividends paid last year to the Shareholders.
Commenting on this announcement the Bank’s Deputy Chairman Tyeab Akbarally said “In continuation of rewarding our shareholders for the confidence they have placed in us, we are honored to have announced an interim dividend for the second consecutive year, despite challenging market conditions. As part of our value creation strategy, we look forward to doing our best to ensure our shareholders reap the benefits of their investment with Amana Bank”.
Amana 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 IDB Group being the principal shareholder having a 29.97% stake of the Bank. The IDB Group is a ‘AAA’ rated multilateral development financial institution with an authorized capital base of over USD 150 Billion which has a membership of 57 countries. Fitch Ratings, in June 2019, affirmed Amana Bank’s National Long Term Rating of BB(lka) with a Positive outlook. Amana Bank does not have any subsidiaries, associates or affiliated institutions representing the Bank.