Month: March 2023

Standard Chartered Bank Pakistan Limited (SCBPL) has launched an internship program for disabled individuals to encourage economic empowerment and financial inclusion.

This initiative’s goal is to develop a broad stream of viable candidates for the banking sector while also improving their quality of life.

Rehan Sheikh, Chief Executive Officer (CEO) of SCBPL, Millicent Clarke, Regional Head of Human Resources, Africa and Middle East, and Muhammad Umer, Country Head of HR SCBPL, attended the inaugural event, including colleagues with disabilities who recounted their experiences at the bank.

The newly established Internship Program for Disabled People, as per the SCBPL CEO, is an important milestone in the bank’s efforts to enable equity in access and chance for people with disabilities to engage in business activities and achieve their full potential.

The program, which is a component of their Futuremakers Inclusive Employability Plan, is backed by enhanced infrastructure, service delivery, and the utilization of new technology.

The initiative aligns with the bank’s objective of Financial Inclusion of People with Disabilities and is projected to provide additional doors and chances for future growth.

Source: Pro Pakistani

National Bank of Pakistan (NBP) has maintained its growth in profitability which surged to over Rs. 30.4 billion in 2022.

According to the financial results, the bank reported an unconsolidated profit of Rs. 30.4 billion in 2022, up 9 percent from Rs. 28 billion in 2021. This is the second-highest profit reported by the bank in its history. Previously, the bank reported the highest-ever profit of Rs. 30.5 billion in 2020.

The bank has delivered yet another year of strong financial results, and posted a pre-tax profit of Rs. 62.7 billion, depicting an annual increase of 18.7 percent.

With strong income momentum across its business segments, the bank’s fund-based net interest income was particularly strong. Amidst the challenging macro environment, the bank has continued to provide support for its customers and clients in line with its vision.

The 40 percent growth in average earning assets, coupled with margin expansion through higher policy rates, generated gross interest income of Rs. 503.3 billion, up 117 percent compared to Rs. 231.9 billion for 2021.

Despite a challenging business environment and lower trade activity, the bank maintained its non-fund income stream which amounted to Rs. 36.7 billion (2021: Rs 36.9 billion). Equity investments of the bank generated dividend income of Rs. 5.2 billion, 13.3 percent higher YoY.

Fee and commission income earned through banking operations amounted to Rs. 21.2 billion i.e. 18.8 percent higher YoY and are reflective of the bank’s widespread customer base and market outreach. As the bank provides FX solutions to a large number of corporates, its forex income for the year amounted to Rs. 7.4 billion which is 14.4 percent higher YoY.

Reflecting the inflationary impacts, ad hoc allowance allowed to the employees and the bank’s investment into its IT systems and upgrade of business premises, operating expenses for the year amounted to Rs. 78.2 billion.

This year, the bank achieved the Rs. 5 trillion milestone in its balance sheet which grew by 36.2 percent to reach Rs. 5.240 trillion from Rs. 3.846 trillion at the end of 2021. This makes NBP the largest bank in Pakistan in terms of total assets.

The bank’s advances-to-deposits ratio improved to 54 percent as compared to 43 percent at the end of 2021. With a widespread and well-diversified market outreach, the Bank maintains a strong funding and liquidity profile. At the year’s end, total deposits amounted to Rs. 2.666 trillion as compared to Rs. 3.019 trillion at the end of 2021. This drop in deposits is based on the bank’s focused strategy to reduce high-cost deposits so as to deliver higher after-tax profit to its shareholders.

The major share of the bank’s deposits comes from sticky customer deposits which contribute 98.1 percent of the total deposits. With current deposits amounting to Rs. 1.310 trillion or 49.1 percent of the total deposits, the Bank maintains a strong liquidity profile.

Commenting on the annual performance, the Bank’s President/CEO(A), Rehmat Ali Hasnie, said that the excellent strategic delivery and financial results were a testament to the efforts and dedication demonstrated by the Bank’s employees in serving the nation through these challenging times. The Bank is pursuing a major organizational and technological transformation, product enhancement, digitalization, and initiatives for promoting financial inclusion with a focus on commercial and rural segments.

In parallel with its business growth initiatives, the bank has also continued to progress via the remediation of legacy issues. Going forward, NBP’s strategy focuses on enhancing its service quality levels, diversifying its outreach through digitalization, and increasing its products and services suite

Source: Pro Pakistani

A recent poll by Topline Research surveyed market participants on their views and macro estimates for the upcoming Monetary Policy announcement on March 2, 2023.

The results showed that the majority of the market expects a policy rate increase of 200-300 basis points (bps) while only 1 percent expect no change.

As per the survey, the majority of the participants (87 percent) expect the policy rate to increase by 200-300 bps. Out of these, 64 percent expect a 200 bps increase, and 23 percent are eyeing a 300 bps increase. Out of the remaining participants, 7 percent expect a 100 bps increase, whereas 4 percent are eyeing an above 300 bps increase. Meanwhile, only 1 percent of the survey participants expect no change.

Inflation

In response to the question on average inflation expectations for FY23, 38 percent of the total participants believe that inflation is likely to average above 30 percent. On other hand, 29 percent and 23 percent of the participants expect inflation of 28-30 percent and 26-28 percent, respectively. The remaining 10 percent of the participants expect inflation to average 22-26 percent.

Responding to the question on where they see the Policy Rate by end of December 2023, 40 percent of the participants anticipate the policy rate to remain in the range of 19-21 percent while 21 percent expect it to be at 15-17 percent and 19 percent expect it to be 17-19 percent. On other hand, 3 percent expect it to be below 15 percent.

To highlight, since the last MPC meeting held on January 23, 2023, secondary market rates including T-Bill/Kibor rates have gone up by around 200 bps.

CPI inflation has also increased to 27.6 percent in January 2023 as compared to 24.5 percent in December 2022. Urban core inflation (Non-Food, Non-Energy) stood at 15.4 percent in January 2023 versus 14.7 percent in December 2022. Rural Core Inflation increased to 19.4 percent in January 2023 versus 19.0 percent in December 2022. February 2023 CPI is likely to be 30-31 percent.

Source: Pro Pakistani

The Bank of Azad Jammu and Kashmir has launched the ‘Excellence Customer Service Campaign’ to improve banking services to cater to the needs of the modern age, besides promoting business relations with customers.

Speaking on the occasion, Chief Executive Officer and President of the Bank Khawar Saeed said that the most profitable institution of the state had moved towards progress.

“In the last three years, the profit of the institution has increased from Rs. 134 million to Rs. 961 million rupees. The profit has increased by 110 percent during the last year, which is a reflection of the strong trust of the customers in the bank,” he stated.

The CEO informed the audience about the bank’s various loan schemes and customer services. Exhorting the staff to strengthen business relations with customers and improve customer service, he said that customers were their most valuable asset and providing them with the “best banking services is at the top of our priorities”.

The aim of the campaign was to respect the customers as well as provide an opportunity for the staff to promote discipline in the interest of the customers. “It will help in expanding the business, including building direct business relationships with customers,” he added.

Source: Pro Pakistani