PESHAWAR: A leading finance and tax expert of KP, Muhammad Umair Zeb said that despite the challenging economic conditions, the Bank of Khyber managed to post Rs.1,647 million profit before tax whereas profit after tax for the first quarter of the year 2023 stood at Rs.939 million against Rs.390 million of the corresponding period of 2022.
The Bank’s profit after tax rose to Rs 939 million with basic and diluted earnings per share improving from Rs 0.35 in Q1’22 to Rs 0.85 in Q1’23, according to a press release issued here on Sunday.
The increase in profitability is mainly attributable to gradual repositioning of the balance sheet done in view of the market interest rates, continuous focus on non-markup income and positive impact on the cost of deposits during Q1 of certain one-off items.
These factors have resulted in an increase of net interest income as well as non-markup income of the Bank on a timeline basis.
Non-markup income increased to Rs. 420 million (up 8.3%) against Rs. 387 million in the corresponding period last year with major contributions coming in from fee commission income and foreign exchange income, the press release said.
It added BOK’s total operating expenses were Rs 1,855 million as persistent inflation and rapidly escalating fuel and utility costs created pressure across all categories. The cost-to-income ratio of the bank improved significantly.
According to the press release, the bank’s paid an amount of Rs708 million as income tax for the period under review with an increase of 175%, compared to Rs257 million in the corresponding quarter of the last year. This also includes the impact of applicable Super Tax.
The advancement of the bank’s credit rating from A to A+ by the VIS is the proof of the immense progress made by BOK in the past years, the statement said.
Commenting on the Bank’s performance, Muhammad Ali Gulfaraz, Managing Director & CEO – BOK said, “We have remained steadfast in the course we have set for ourselves i.e. setting new benchmarks in challenging times.
Given this was achieved while Pakistan faces perhaps the most challenging economic conditions in its history, speaks for the continued patronage of our clients, the robustness of our business model and the dedication of the entire BOK team.
As we navigate the current environment, we remain live to risks; we will pursue a course that ensures the highest possible standards of client experience whilst ensuring that business controls are robust across the franchise.”
Commenting on the Bank’s performance, its CFO Irfan Saleem Awan said, “BOK is well-positioned as a full-fledged conventional & Islamic Bank, and is ready to take on new challenges backed by a strong balance sheet and the vision to become the best customer centric conventional and Islamic bank, driven by passion and belief.
Copyright Business Recorder, 2023