3 August 2017 12:01 am Views - 922
The bank with an asset base of little under Rs.57 billion gave only Rs.1.7 billion in new loans during the first six months of the financial year and mobilized deposits of Rs.2.3 billion.
The bank has a loan book of Rs.40.4 billion and a deposit portfolio of Rs.49.2 billion.
The bank’s net financing income or the net income between the cost and the yield of its liabilities and the assets rose by a strong 38.5 percent year-on-year (YoY) to Rs.634.2 million as the bank was able to stretch its net interest margin from 3.6 percent to 3.9 percent during the 6- months to June 30.
The net fee and commission income grew by a little under 7.0 percent yoy to Rs.54.2 million.
The trading gains almost doubled from Rs.57.2 million to Rs.108.9 million.
Meanwhile, the bank made provisions of Rs.107 million against the possible bad loans during the quarter against only Rs.3.3 million provisions made during the corresponding quarter last year.
The sour loan portfolio also grew during the period as the gross non-performing loan ratio has risen to 1.47 percent from 0.89 percent in December 2016, albeit remaining well below the industry average of around 2.7 percent.
The bank in July raised Rs.4.75 billion in fresh equity through a rights issue which propped up the bank’s core capital to Rs.10.0 billion, the minimum required by the Central Bank by January 1, 2018 for those few who sought extended time frame to meet the requirement.
The negotiated share deal saw IB Growth Fund (IBGF), together with its ultimate parent company and the bank’s 4th largest shareholder, Islamic Development Bank (IDB) increasing their stake up to 29.97 percent stake in the bank.
Before the rights issue, the bank’s tier I and tier II capital adequacy ratios stood at 10.4 percent and 10.8 percent respectively.
Meanwhile, for the 6 months ended June 30, 2017, the bank reported an earnings of 12 cents a share or Rs.151.8 million, up 170 percent from a year ago.