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Category: Corporate

  • PNSC recommends tax incentives for shipping industry to grow

    PNSC recommends tax incentives for shipping industry to grow

    Pakistan National Shipping Corporation (PNSC) has emphasized the need to introduce tax incentives to help shipping industry to grow.

    In an analyst briefing a day earlier, the company emphasized the need to introduce tax incentive measures to flourish the shipping industry which will minimize outflow of valuable national foreign reserves.

    According to Insight Research, PNSC held its analyst briefing to comment on its financial result of fiscal year 2021/2022 and to shed some light on company’s future outlook. Major highlights of the session are given below:

    PNSC has posted topline of PKR28 billion in FY22, up by 117 per cent as compared to same period last year (SPLY). Whereas profit after tax (PAT) stood at PKR5.7 billion (EPS: PKR42.75) vs. PKR2.3 million (EPS: PKR17.14) in SPLY. Where in 1QFY23, company has posted PAT of PKR 5.3 billion (EPS: PKR40.80), up by 8.5x YoY.

    Gross margins of the company increased to 29 per cent in FY22 from 22 per cent in FY21 due to higher crude oil freight rates. Similarly, net margins increased to 20 per cent in FY22 from 18 per cent in SPLY.

    Company’s current deadweight tonnage capacity reached to 1.05 million tons which is highest ever in its inventory. To highlight, company has recently added 2 vessels (Aframax tankers) in August 2022 with a combined capacity of 0.21 million.

    Company’s current fleet strength comprise of 13 vessels, out of which 8 are oil tankers and 5 are bulk carriers.

    Company is considering different options i.e by selling in scrap or dry docking or using as a storage terminal to dispose their 3 old vessels.

    As per management, average life of the ship is 20 years based on cost effectiveness.  However, using a ship higher than this age will normally increase the maintenance cost for the company.

    Global oil freight charges are on the rising trend due to EU sanctions against Russian crude and refined oil product imports which will likely result in increased profitability for the company in coming quarter.

    Company is further planning to add Afra max tanker, IMO type-II tanker and Ultra max bulk carrier in their fleet and estimated cost for adding these vessels are $150 million on current levels.

    While commentating on company’s plan to diversify its operations, company is planning to enter new markets including Edible oil transportation which is currently being imported on CFR basis.

  • Shell Pakistan signs ABHI for voluntary carbon compensation offer

    Shell Pakistan signs ABHI for voluntary carbon compensation offer

    KARACHI: Shell Pakistan Limited has signed ABHI, Pakistan’s first financial wellness platform, as its first official customer for the launch of its new voluntary carbon compensation program, according to a statement issued on Thursday.

    This program provides an avenue for all ABHI employees who are using Shell Fuel Cards to offset hard-to-abate carbon emissions from their fuel consumption by using Shell’s global portfolio of carbon credits.

    ABHI will be compensating for unavoidable carbon emissions generated from their sales fleet across Karachi, Lahore & Islamabad.

    These credits are generated from carbon compensation projects, including both nature projects, such as conservation, afforestation, and so on, and projects from other methodologies, operating around the world.

    These projects help avoid or remove greenhouse gas emissions. The emission reductions are independently verified by internationally recognized standards, e.g. Verified Carbon Standard (VCS) and Climate, Community & Biodiversity Standards (CCB), and carbon credits are issued.

    Some of these projects further promote the safeguarding of wildlife and communities and support some of the United Nations Sustainable Development Goals.

    Speaking at the ceremony, Managing Director and General Manager Mobility for Shell Pakistan, Waqar Siddiqui, stated: “Shell’s approach to emissions reduction follows the ‘avoid-reduce-compensate’ mitigation hierarchy. We recommend this approach to our partners and customers across sectors to accelerate the transition to net zero emissions. The use of high-quality carbon credits is one of the viable ways to mitigate hard-to-abate emissions. We are pleased to support ABHI on their decarbonization journey.”

    Omair Ansari, CEO, and Co-Founder at ABHI commented: “Shell is leading global initiatives to reduce carbon emissions and ABHI is proud to be a part of it. ABHI being a fast-growing fintech understands environmental responsibility and always looks forward to supporting climate-friendly initiatives. While we empower people financially, we believe in enabling social change along the way.”

  • K-Electric sees positive outlook despite challenges

    K-Electric sees positive outlook despite challenges

    KARACHI: K-Electric, a power utility providing electricity to residential, commercial and industrial consumers of Karachi, is confident of positive outlook despite macroeconomic and geopolitical challenges.

    “Despite macroeconomic and geopolitical challenges, KE is confident in serving its customers in a reliable and efficient way through a comprehensive, multi-pronged strategy,” said KE’s Chief Financial Officer Muhammad Aamir Ghaziani at a Corporate Briefing Session held at the Pakistan Stock Exchange (PSX) on November 22, 2022.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Sustained investments in the value chain have driven continued improvement in KE’s core business. Since privatization, KE has been able to reduce its transmission and distribution losses from approximately 34% to 15% at the end of FY22.

    The utility’s transmission and distribution (T&D) losses have reduced by 2 percentage points at the end of the first quarter of FY23 compared to the same period last year, while generation efficiency has also improved by 0.6 percentage points during this time. Investment of around PKR 62.8 billion in FY22 and PKR 11.6 billion in first quarter of FY23 has been made across power value chain.

    READ MORE: Faysal Bank, K-Electric collaborate to ease customer’s payment

    KE is also preparing itself for the future. The panel shared plans to add up to 500 MW of efficient, clean energy in the short term to diversify the company’s fuel mix and lower the costs of electricity for the company and consumers alike. Simultaneously, construction works of Dhabeji and KKI grids are underway to allow KE to receive additional supply of up to 2050 MW from the National Grid.

    On the distribution front, the company intends to enhance its infrastructure and continue its efforts to reduce distribution losses by rolling out Aerial Bundled Cables (ABCs) on its network and implement new and reengineered processes for an improved customer experience. 

    Speaking at the event, Sadia Dada, Chief Marketing and Communication Officer, also proudly shared KE’s multi-award winning corporate social responsibility strategy, which is driving grassroots development of the communities it operates in.

    READ MORE: KE adjusts electricity bills under FCA relief package

    The company shared highlights of its efforts including the installation of water filtration plants, renovation of schools and public parks, and setting up of health camps which have collectively benefitted approximately 200,000 persons.

    KE’s flagship Roshni Baji Program also completed its 2nd cohort. Collectively 100 women have undergone training as KE’s neighborhood safety ambassadors as well as the country’s first certified female electricians. Collectively, these women have educated over 463,000 households on safe practices for electricity usage, building safer communities.

    READ MORE: NEPRA acknowledges KE’s operational performance

    Through different other partnerships, women are also being trained in financial literacy, self-defense, motorcycle operations, and CPR training. Continued awareness on safety through public service messaging has reached hundreds of thousands of people across Karachi’s high-risk areas as well.

    The briefing also shed light on external factors which affected KE’s financial performance including, demand disruption due to macro-economic factors, receivables from the Government of Pakistan and related entities, devaluation of the Pak rupee resulting in exchange loss, increases in effective rates of borrowing leading to higher finance cost and increases in consumer tariffs which affected customer’s propensity to pay bills resulting in increase in the provision against doubtful debts.

    The Company expects some in increase in growth due to shift of captive consumers to grid during the upcoming winter season and is also working diligently on conversion of captive consumers to grid in line with GoP’s policy as well as simplified New Connection process.

    Aligned with the mission of brightening lives by building the capacity to deliver uninterrupted, safe and affordable power to Karachiites, KE will continue to make investments across the value chain, enabling the company to improve operationally whilst progressing on the value creation curve through innovation and technological advancements. However, support from government and regulatory authorities remain critical for the execution of the planned investment

  • China Power serves encashment notice as HUBCO standby letter of credit expires

    China Power serves encashment notice as HUBCO standby letter of credit expires

    KARACHI: China Power Hub Generation Company (CPHGC) on Wednesday served an encashment notice to Hub Power Company (HUBCO) under standby letter of credit (SBLC), which expires today i.e. November 23, 2022.

    According to a notice of Pakistan Stock Exchange (PSX), an encashment notice has been served by China Power Hub Generation Company (CPHGC) on November 23, 2022, under the Standby Letter of Credit (SBLC) – which expires today- on the issuing bank.

    READ MORE: Industries threaten mass protest against gas supply shutdown

    To recall, the Hub Power Company (HUBC) had provided SBLC for an aggregate amount of $150 million to guarantee an investment in the form of equity or subordinated debt to satisfy the funding shortfall, if any, in CPHGC;

    a) To achieve completion of the project to the satisfaction of the lenders; and

    b) To repay all principal, interest, fees or any other amounts that may fall due by CPHGC under the finance documents to the finance parties.

    READ MORE: SSGC stops gas supply to industries under load management plan

    Moreover, shares held by Hub Power Holding Limited (HPHL) in CPHGC were pledged in favor of the security trustee in order to secure the company and HPHL’s obligations under the financing documents of CPHGC.

    Analysts at Arif Habib Limited said HUBCO will have to provide a new SBLC within ten (10) days from the date of the encashment notice.

    READ MORE: Pakistan has sufficient stock of fuel to meet domestic demand

    In case of non-issuance of new SBLC, banks will disburse $150 million to CPHGC, as per the agreement. In this case, a liability (we are assuming subordinated debt) of the same amount will be booked on the books of HUBCO against a receivable from CPHGC.

    We believe, CPHGC will repay the SBLC amount to HUBCO after the project completion date (PCD). To recall, CPHGC has not achieved PCD yet.

    READ MORE: ECC approves raising petroleum levy to Rs50 per liter on RON 95

    In order to calculate the financial impact of the mark-up differential between the amount paid by HUBC to the banks and the amount charged from CPHGC along with the share of profit from associate, we have run a sensitivity assuming different spreads on mark-up charged from CPHGC by HUBC, as illustrated in the Exhibit below.

    Our base case scenario assumes zero spread as a company cannot charge a markup lower than its own cost from its associate on a subordinated loan, as per regulations, the analysts said.

  • ACCA, IFAC release guide on public financial management reforms

    ACCA, IFAC release guide on public financial management reforms

    A new joint guide by the Association of Chartered Certified Accountants (ACCA) and the International Federation of Accountants (IFAC) released at the World Congress of Accountants (WCOA) aims to boost PFM reforms across the globe by defining for the first time the idea of professionalisation specifically in the context of public sector finance.

    The guide also features case studies of good practice from Tanzania, the UK, Cyprus, the Philippines, Pakistan, Malaysia and Wales.

    A global guide for professionalisation in public sector finance provides a definition of what professionalisation means in public sector finance, sets out the benefits of professionalisation, and offers a high-level roadmap to support global good practice in professionalisation.

    Discussing the global guide ahead of a panel discussion at WCOA, Joseph Owolabi, ACCA president, said: “Professionalisation brings credibility, trust and confidence in public finances by supplementing the systems and public finance processes with the right skills for accountability, transparency, good governance and external scrutiny.

    A professionalised workforce within a finance function supplies more than accounting information. It brings wide value to public sector finances – providing improved revenue collection, effective budgetary controls, and the data required to support policy decision making.”

    Kevin Dancey, IFAC CEO, said: “We are looking to rebalance the focus so that it is not only on the process, but also on the people. The value of the accountancy profession, whether in the public or private sectors, comes from the experience, skills, judgement and ethical behaviour of its people. By increasing the number of professional accountants working in the public sector, we will no doubt add to the credibility and effectiveness of PFM, and reinforce trust in public services and spending.”

    Achieving professionalisation brings multiple benefits to the economy, governments and individuals. It means greater financial credibility for economies, improved financial management discipline for governments, and greater access to diverse career options for individuals.

    Alex Metcalfe, ACCA’s head of public sector, said: “Political leadership and commitment for professionalisation is the most important factor for sustaining PFM reforms over time. In some countries, there is a lack of recognition that change is needed at all. In other countries, PFM reforms have concentrated on moving from cash-based to accrual-based accounting. But now more effort is urgently required to professionalise public finance staff and provide opportunities for training for professional qualifications.”

  • SECP slaps penalties worth Rs4.78 billion on companies in FY22

    SECP slaps penalties worth Rs4.78 billion on companies in FY22

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has slapped monetary penalties amounting PKR 4.78 billion on registered companies during fiscal year 2021-2022.

    The SECP on Friday issued annual report for fiscal year 2021-2022. It said building on the initiatives of the previous fiscal year of establishment of a dedicated supervision division and a dedicated adjudication division, the SECP has concluded 579 cases through orders imposing penalties amounting to Rs77 million on listed companies and licensed entities on account of violation of relevant laws.

    READ MORE: Honda Cars Pakistan posts massive 85pc decline in half year profit

    Likewise, 85,519 orders were issued to unlisted companies imposing penalties amounting to Rs4.701 billion.

    SECP Chairman Aamir Khan has expressed his satisfaction that the Commission has achieved significant progress in multiple areas including transparent and fair enforcement, promoting ease of doing business, supporting innovation and entrepreneurship, financial inclusion and market development.

    In his message Amir Khan said that in pursuit of developmental reforms “the over-arching enablers were identified as promoting digitalisation, simplifying regulatory structure, reducing cost of compliance and invigorating the exchange of ideas and concepts with market participants and stakeholders”.

    READ MORE: Faysal Bank posts 51% growth in profit before tax

    This year, while moving further towards a functional based structure, the SECP has successfully consolidated its licensing activity under a centralized department. The centralization of licensing will bring uniformity, efficiency and transparency into the issuance and renewal of licenses, and related approvals.

    Other significant progress includes the issuance of digital mortgage certificates and acknowledgements of annual and other returns; issuance of digital CTCs of the company’s statutory returns and digital company profile.

    To facilitate easy exit, an online portal of Companies’ Easy Exit has been launched. Moreover, the process of company incorporation has been centralized at the head office to standardize and facilitate expeditions processing.

    READ MORE: NBP net profit declines by 21% on high tax incidence in 9MCY22

    The SECP, in coordination with SBP, has also launched an exclusive digital portal, which enables banks to certify a company’s filings. In FY 2021-22, numerous reforms were introduced in the capital market to bring efficiency, transparency, depth and ease for the investors.

    The process for submitting IPO applications by the issuers/companies has been automated. The opening of news accounts by small investors was made very simple through a new category of “Sehl Account”, wherein investors can be onboarded through microfinance banks backed by telecom providers.

    Further, to simplify investment in mutual funds, Pakistan’s first mutual fund digital distribution platform, namely “Emlaak Financials” has been launched by the central Depository Company (CDC). The pension funds have been allowed to invest in REITs, Private Equities, Venture Capital Funds and ETFs.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Moreover, pension funds have also been allowed passive investment strategies in the form of Index sub-fund. In addition, financial institutions including Banks, DFIs, PDs, AMCs etc. have been allowed to act as market makers, thereby increasing secondary debt market liquidity.

    So far, 16 financial institutions have been registered as market makers. For the first time, the SECP has awarded a NBFC license to operate as a P2P lending platform on a commercial basis.

    The P2P operations of NBFC were successfully tested under SECP’s regulatory sandbox. To provide immediate responses and guidance regarding company incorporation, the SECP has launched WhatsApp and Wechat service.

    Through the service which is the first of its kind in Pakistan’s public sector, the SECP has handled 29,681 queries during FY 2021-22, having a satisfaction ratio exceeding 89 per cent.

    The SECP also handled 10,204 complaints through its digital complaint dashboard (Service Desk Management System – SDMS), out of which, 9,761 (96 per cent) stand resolved/closed and the remaining are at different stages of being addressed.

    SECP Chairman Aamir Khan said: “SECP will continue promoting innovation through closer collaboration with our regulated sectors, academia and incubators.”

  • Honda Cars Pakistan posts massive 85pc decline in half year profit

    Honda Cars Pakistan posts massive 85pc decline in half year profit

    Honda Atlas Cars (Pakistan) Limited on Wednesday announced a massive 85 per cent decline in profit after tax for half year ended September 30, 2022.

    According to financial results submitted to Pakistan Stock Exchange (PSX), Honda Cars Pakistan declared Rs273 million as profit after tax for the period April – September 2022 as compared with Rs1.87 billion in the corresponding period of the last year.

    READ MORE: Faysal Bank posts 51% growth in profit before tax

    The earnings per share (EPS) also restricted to Rs1.91 for the period under review as compared with Rs13.08 in the same period of the last year.

    The board of directors of Honda Atlas Cars (Pakistan) Limited met on November 16, 2022 and approved the financial results for the half year ended September 30, 2022.

    READ MORE: NBP net profit declines by 21% on high tax incidence in 9MCY22

    Total sales of the company slightly increased to Rs49.79 billion during the half year ended September 30, 2022 when compared with Rs47.74 billion in the same period of the last year.

    The company posted gross profit at Rs2.59 billion during April – September 2022 when compared with Rs3.38 billion in the corresponding period of the last year.

    READ MORE: K-Electric posts huge losses despite 144% jump in tariff adjustment revenue

    Administrative expenses of the company increased to Rs661 million during the period of six months ended September 30, 2022 when compared with Rs503 million in the same months of the last year.

    Honda Atlas Cars (Pakistan) Limited posted loss of Rs385 million during the quarter ended September 30, 2022 when compared with a profit of Rs939 million in the same quarter of the last year.

    READ MORE: Jazz supports breast cancer awareness campaign

  • Company registration rises to 180,996: SEC Pakistan

    Company registration rises to 180,996: SEC Pakistan

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has said that total company registration has increased to 180,996 by end of October 2022.

    According to a statement the SECP registered 2,361 new companies in October 2022. “This shows an increase of 17 per cent as compared to corresponding period last month. The total number of registered companies now stands at 180,966,” the SECP added.

    READ MORE: SECP’s company registration goes up to 169,919 till May 2022

    Foreign investment has been reported in 77 new companies. These companies have foreign investors from Afghanistan, Austria, Australia, Bangladesh, China, Denmark, Iran, Italy, Jordan, Korea (South), Lebanon, Lithuania, Norway, Saudi Arabia, Singapore, Yemen, Tunisia, Turkey, the UAE, the UK and the US.

    Total capitalization (paid-up-capital) with regard to newly incorporated companies for the current month stood Rs3 billion.

    READ MORE: SECP, FBR integration brings 2,365 companies under tax net

    In October, about 60 per cent companies were registered as private limited companies, while 37 per cent were registered as single member companies. About three per cent were registered as public unlisted companies, not profit associations, foreign companies and limited liability partnership (LLP). Nearly 99.8 per cent companies were registered online.

    READ MORE: RDA: SECP exempts banks from obtaining license

    The real estate development and construction sector took the lead with incorporation of 432, information technology with 355, trading with 279, services with 234, food and beverages with 93, e-commerce with 92, tourism with 84, education with 83, corporate agricultural farming with 72, marketing and advertisement with 56, engineering with 45, power generation with 44 and 814 companies were registered in other sectors.

    READ MORE: SEC Pakistan amends regulations to facilitate startups

    As a result of integration of SECP with the Federal Board of Revenue (FBR) ad various provincial department, 1,969 companies were registered with the FBR for generation of National Tax Number (NTN), 81 companies with Employees Old-age Benefit Institution (EOBI), 47 companies with PESSI/SESSI ad 57 companies with excise and taxation department.

  • Faysal Bank posts 51% growth in profit before tax

    Faysal Bank posts 51% growth in profit before tax

    Faysal Bank Limited has posted a massive growth of 51 per cent in its profit before tax for nine months period ended September 30, 2022.

    According to a statement issued on Tuesday, Faysal Bank Limited achieved the landmark of Rs1 trillion mark in balance sheet footings with a record profit before tax of Rs15.0 billion, 51 per cent higher than the corresponding period last year

    The Board of Directors of Faysal Bank Limited (FBL), in their meeting held on October 27, 2022, approved the financial statements of the Bank for the nine months ended September 30, 2022 and announced an interim cash dividend of Rs. 5.50 per share i.e. 55 per cent. This is in addition to interim cash dividend for the second quarter ended June 30, 2022 already paid at Rs. 0.50 per share i.e. 5 per cent.

    The bank is very close to the completion of the requirements of converting Faysal Bank Limited into a full-fledged Islamic bank. Accordingly, all the Non-Shariah Compliant retained earnings of the Bank are being distributed to the shareholders as cash dividend.

    FBL has delivered exuberant performance in the nine months of 2022 with a Profit Before Tax (PBT) of Rs. 15.0 billion, 51 per cent higher than the Rs. 9.9 billion in the corresponding period last year. However, the increase in Profit After Tax (PAT) is restricted to 26 per cent from Rs. 6.1 billion in 9m’21 to Rs. 7.7 billion in first nine months of 2022 on the back of extremely high and retrospective tax measures announced in the federal budget.

    Current deposit momentum built over last several quarters continued and has reached Rs. 274 billion, 27 per cent growth over December 2021. Total deposits increased by 13 per cent over December 2021 with CASA mix improving to 80 per cent from 75 per cent at December 2021. FBL’s net advances increased by 18 per cent to Rs. 468 billion, with the growth across all lending businesses and improvement in ADR to 65 per cent as at September 2022. Despite the prevailing uncertainty, FBL is committed to its strategy for conversion into Islamic bank and have applied to SBP for issuance of Islamic Banking License.

    The Bank continued to deliver on growth objectives and increased the total revenue by 33 per cent over 9m’21 to Rs. 33.6 billion. Non markup expenses of the bank have increased by 27 per cent over 9m’21 while the cost to income ratio has improved from 60 per cent in 9m’21 to 57 per cent in 9m’22. Net provision for 9m’22 reflected reversals of Rs. 0.7 billion while infection ratio continued to reduce and is at 4.6 per cent with total coverage at 89.5 per cent.

    FBL will continue to invest in expanding the footprints by network expansion and is planning to open another 50+ branches in Q4’22 with an objective to reach the branch network to 700+ by the end of this year. The bank will continue to reshape banking experience by improving the quality of customer service, providing innovative digital solutions and will continue to invest in modern technologies to improve digital offerings and customer experience.

    FBL was incorporated in Pakistan on October 3, 1994 as a public limited company and its shares are listed on Pakistan Stock Exchange. FBL offers a wide range of modern banking services to all customer segments, i.e., Retail, Small & Medium Sized Enterprises, Commercial, Agri-based, and Corporate.

  • NBP net profit declines by 21% on high tax incidence in 9MCY22

    NBP net profit declines by 21% on high tax incidence in 9MCY22

    National Bank of Pakistan (NBP) has declared 21 per cent decline in after tax profit due to high incidence during first nine months (January – September) 2022.

    According to unconsolidated financial results submitted to the Pakistan Stock Exchange (PSX), NBP announced after tax profit at Rs19.16 billion for nine months period ended September 30, 2022 as compared with Rs24.14 billion in the corresponding period of the last year.

    The bank declared earnings per share (EPS) at Rs9.01 for the nine months period ended September 30, 2022 as compared with EPS Rs11.35 in the same period of the last year.

    Board of Directors of National Bank of Pakistan met on October 28, 2022 and not recommended any cash dividend, bonus issue/ right share or any other entitlement.

    Bank officials said that taxation charge for the period amounted to Rs29.2 billion as against Rs16.1 billion during nine months of year 2021. They said that the Finance Act, 2022 brought in certain changes, which apart from increase in the statutory and super tax rate, also had a retrospective impact mainly due to ADR being below 50 per cent with reference to prior year’s earnings and has increased the effective tax rate from 40 per cent for nine months of 2021 to 60.4 per cent for nine months of 2022.

    During nine months period ended September 30, 2022, the bank generated a gross interest income (GII) of Rs332.2 billion as against Rs166.5 billion for the similar nine months period of 2021. The Rs165.7 billion increase in GII is achieved through a robust volumetric growth in average interests earning assets coupled with the impact of higher average policy rate during this period that stood at 12.4 per cent as compared to 7 per cent during the same period last year.

    Bank’s investments portfolio during nine months period ended September 30, 2022 averaged Rs2,427.5 billion (September 2021: Rs1,633.8 billion) and generated mark-up/interest income of Rs225.5 billion being Rs125.3 billion or 124.9 billion up against Rs100.3 billion for the corresponding period of last year.

    This translates into average yield at 12.4 per cent (September 2021: 8.2 per cent). In the higher policy rate environment, the maturity profile of the bank’s investment book is skewed towards the shorter duration securities under available-for-sale category.

    Similarly, placements, that averaged Rs126.9 billion (September 2021: Rs53.9 billion) generated a mark-up income of Rs10.8 billion (September 2021: Rs2.9 billion) at an improved yield of 11.3 per cent as compared to 7.1 per cent for September 2021.

    For the nine months period ended September 30, 2021, the bank’s loan book averaged Rs1,341.9 billion and generated a mark-up income of Rs95.9 billion i.e. Rs32.5 billion or 51.4 per cent higher than Rs63.4 billion of the similar period last year. This significant growth was achieved through both, a volumetric growth, as well as the favorable Year on Year (YoY) rate variance. Pertinent to mention this high performance was achieved despite the fact that the bank carries a significant proportion of lower margin and non-performance public sector loans.

    Likewise, on the back of higher average policy rate, the bank’s cost of funds for nine months period ended September 30, 2022 recorded a significant YoY increase and amounted to Rs251.6 billion as against Rs94.1 billion for corresponding nine month period of 2021.

    The Rs159.5 billion or 167.4 per cent YoY increase is mainly recorded in cost of deposits that amounted to Rs141.9 billion as against Rs61.7 billion in the same period of the last year and the borrowings/repo costs by Rs75.8 billion to close at Rs101.5 billion. As compared to nine months ended September 2021, average non-remunerative current deposits increased impressively by Rs66.9 billion or 13.3 per cent to Rs569.6 billion.

    Operating expenses of the bank for the period under review amounted to Rs54.8 billion which is 16.5 per cent higher YoY as compared to Rs47 billion of same period last year.