Similarly, it noted that the bank has improved its deposits by 7 percent or Rs 171 billion against the Rs 159 billion during year 2017. The net-mark-up income has jumped at Rs 5.1 billion as compared to Rs 4.7billion in 2017. Three new branches opened in Balochistan and Khyber Pakhtunkhwa, including Gwadar, Judicial Complex Haripur and Nasirbagh Regi in Peshawar. The bank of Khyber is MCR (minimum capital requirements) compliant, having 12.28 percent.
The report said the Bank of Khyber like other banks faced difficulties during the year 2018 due to increase in policy rate, which affected the overall banking. However, the Bank remained committed to providing efficient banking solutions to its customers through its technologically upgraded expanded branch network with enhance risk management framework.
It revealed that the bank posted profit before tax of Rs 707 million as compared to Rs 2,795 million of the previous year. Accordingly, the profit after tax also decreased to Rs 466 million. The decrease is, mainly attributed to recording of loss on sale of securities, said in the report. It added that the net markup/interest income after provisions increased by 7 percent and stood at Rs 5,143 million as compared to Rs 4,799 million in the corresponding period of 2017. Non-markup/interest income excluding loss on sale of securities had increased by 19 percent. During the year dividend income also reduced considerably.
On the liability side, the report further revealed that the deposit base of the bank witnessed consistent growth throughout the financial year 2018 and stood at R 171,168 million showing an increase of 7 percent over the year 2017. It further disclosed that the deposit growth was mainly driven through new customer acquisition and deepening of the existing portfolio base. The BoK managed to reduce costly deposits and curtailed cost of funds.
The report said the bank at the end of the year under review, was operating with 169 branches and 3 sub-branches all over the country including Gilgit-Baltistan, erstwhile the Fata and the Azad Jammu and Kashmir. A total of 84 branches were functioning as dedicated Islamic banking branches. Taking cognizance of the fact that the outreach of the branch network has direct implications on the services, the report said that the Bank focused on concentrating and broadening its services through the extended branch network to provide efficient banking services to its valued customers. Efforts were made to offer better products and services in an efficient and professional manner.
In future, the documents said that the Bank being watchful of the economic conditions would focus on maintaining the growth momentum and asset quality. The cornerstone of Bank's philosophy would remain on improving service quality standards and providing state of the art banking services through leveraging technology and training human resources. Efforts are also under way to target new market segments and to improve efficiency and productivity in Bank's overall performance.
The bank would be focusing on enhancing revenue growth and profitability through cross selling various financial products, strengthening internal controls operational structure, capacity building, proficient customer services and optimizing branch banking platform. Emphasis will be on major cost rationalisation initiatives through continuous improvement in automation and produce innovation.