While striving for stable financial performance in the short-term, the bank remains poised for achieving long-term strategy to become one of the premier financial service providers by adapting proactively to rapidly changing global banking dynamics. The bank's interest income aggregated to Rs 15,746 million for the quarter ended March 2017. While persistent focus towards mobilisation of low cost deposits favourably impacted the interest expense which declined by 10 percent for the quarter ended March 31, 2017 as against the corresponding period of last year. Resultantly, the bank's net interest income aggregated to Rs 7,999 million for the quarter ended March 31, 2017.
Driven by a robust risk management framework, proactive monitoring and recovery efforts; the net provision reversal against Non-Performing Loans (NPL) aggregated to Rs 394 million for the quarter ended March 31, 2017 as compared to net charge of Rs 276 million during corresponding period of last year.
Resultantly, Net Mark-up Income after provision increased to Rs 8,393 million during the quarter under review, as against Rs 8,222 million in corresponding period last year. Non-markup/interest income (NII) for the quarter ended March 31, 2017 reached Rs 2,070 million with major contribution from fee based income which remained stable at Rs 1,137 million, 0.3 percent higher than corresponding period of last year.
The lower dividend income was impacted by the announced book closure of certain investee companies; which deferred payouts to the following quarter. Going forward, the bank, intends to maintain its focus on augmenting various avenues for fee-based income.
The bank continued to expand outreach for financial inclusion of unbanked population through multiple touchpoints including conventional and alternate delivery channels. The bank enhanced presence across Pakistan and expanded branch network to 1,150 branches as compared to 1,050 branches in March 2016. Additionally, the Bank augmented outreach through vast ATM network by increasing number of ATMs from 1,015 ATMs in March 2016 to 1,173 ATMs at March 2017; including 217 off-site ATMs installed at strategic locations for increasing accessibility.
Continued focus on costs rationalisation and effective management resulted in curtailing the overall administrative expenses growth by 7 percent during the period under review, despite investment in outreach and alternate delivery channels. Consistent with December 2016, the bank continued to provide for WWF charge during the quarter and shall evaluate its position on periodic basis.
The bank's profit before tax stood at Rs 5,551 million for the quarter ended March 31, 2017 while profit after tax for the quarter ended March 31, 2017 reached Rs 3,602 million. EPS of the Bank stood at Rs 3.15 per share. Return on Equity during the quarter under review stood at 19.1%.
Overall advances of the Bank increased by 6% as compared to December 2016 and reached Rs 350,545 million as at March 31, 2017. Resultantly Gross ADR increased from 43% as at December 31, 2016 to 46% as at March 31, 2017. While overall investment portfolio increased to Rs 606,019 million.
The Bank remained focused on optimising the deposit mix while maintaining robust deposit base despite intense competition within banking industry for low cost deposits. CASA deposits mix improved to 80% as at March 31, 2017 from 78% as at December 31, 2016. While overall industry deposits declined in the quarter under review, total deposits of the Bank increased to Rs 810,220 million during the quarter under review.
Persistent focus on adoption of technology driven latest risk management techniques enabled the Bank to reduce Non-Performing loans by 3% to Rs 19,847 million as at March 31, 2017. Infection and coverage ratio as at March 31, 2017 stood at 5.4% and 93% respectively; significantly outperforming the December 2016 industry infection and coverage ratio of 10.1% and 85% respectively. No FSV benefit has been taken while determining the provision against Non-Performing Advances as allowed under BSD Circular No 01 dated October 21, 2011. Total Assets of the Bank stood at Rs 1,093 billion, reflecting an increase of 2.2% over December 2016 level of Rs 1,070 billion. Total equity as at March 31, 2017 also stood at a robust level of Rs 101,506 million as at March 31, 2017.-PR
Copyright Business Recorder, 2017