Pan Asia Bank has reported its strongest-ever quarterly growth in both customer deposits and lending during the first quarter of 2026, while also recording a notable increase in profitability despite continuing global economic uncertainties.
According to the bank’s latest financial results, Profit Before Tax (PBT) increased by 13% year-on-year to Rs. 1.65 billion, while Profit After Tax (PAT) rose to Rs. 1.05 billion during the quarter.
The bank’s Net Interest Income grew by 12% to Rs. 3.41 billion, driven mainly by stronger lending activity across corporate, SME, and retail banking segments. Pan Asia Bank stated that expanding business activity and improving economic conditions contributed to increased borrowing demand during the quarter.
Meanwhile, Net Fee and Commission Income recorded a significant 55% increase, supported by growth in trade finance operations, inward remittances, and card-related services. The bank noted that rising transaction volumes and stronger customer activity helped improve non-interest income performance.
Pan Asia Bank also reported strong balance sheet expansion during the first three months of the year. Total assets increased by 9% to Rs. 334.61 billion, while gross loans and advances grew by 10% to Rs. 239.49 billion.
Customer deposits also rose by 10% to Rs. 254.19 billion, marking the highest quarterly deposit growth ever recorded by the bank. Industry analysts say strong deposit growth often reflects rising customer confidence and improved liquidity within the banking sector.
The bank further highlighted improvements in credit quality, with its Stage 3 loan ratio improving to 1.57%, remaining among the lowest reported levels within Sri Lanka’s banking industry. Lower non-performing loan levels are generally viewed as an important indicator of financial stability and healthier lending portfolios.
For Sri Lanka, the banking sector’s performance remains closely tied to the country’s broader economic recovery following the financial crisis experienced in recent years. Improved lending activity, stronger deposit growth, and healthier balance sheets are often seen as signs of gradual stabilization within the financial system.
Sri Lankan banks faced severe pressure during the economic crisis due to debt restructuring, high inflation, rising interest rates, foreign exchange shortages, and declining business activity. However, recent economic stabilization measures, IMF-backed reforms, and improved tourism earnings have contributed to renewed confidence within the financial sector.
Despite ongoing geopolitical tensions and global economic uncertainty, Pan Asia Bank stated that it continues to maintain strong capital and liquidity positions, with all major regulatory ratios remaining comfortably above minimum requirements set by financial regulators.
Chairman Aravinda Perera stated that the bank’s strong first-quarter performance reflects growing customer trust, disciplined strategic execution, and the resilience of the institution’s long-term business model.
Meanwhile, Director and CEO Naleen Edirisinghe noted that the bank remains focused on maintaining sustainable growth, improving operational efficiency, and strengthening digital banking capabilities throughout 2026.
Industry experts believe Sri Lanka’s banking sector will continue facing challenges related to global economic volatility and domestic recovery pressures. However, stronger financial performances from banks could help improve investor confidence and support broader economic growth across the country.
Pan Asia Bank stated that it expects growth momentum to continue during the remainder of the year while maintaining prudent risk management and long-term financial stability.
