Interest expenses increased at a lower rate of 12.09% to Rs 53.160 billion, due to timely re-pricing of liabilities despite a substantial increase in deposits. Notably, both deposits and loans have recorded YoY growth of more than Rs 125 billion.
The Bank reported a 17.85% improvement in net fees and commission income, amounting to Rs 7.249 billion for the nine months and representing 15% of the total operating income. Other income, including exchange profit, recoveries of loans written off/provided for and net gains/losses from trading and financial instruments, grew by a remarkable 244.56% to Rs 5.406 billion.
As a result, the total operating income of Rs 48.321 billion for the nine months ending September 30, 2018 reflected a growth of 34.37% over the corresponding period of last year.
The prevailing weak market conditions resulted in an increase in non-performing loans and advances, pushing the total impairment charges for loans and other losses for the period under review to Rs 6.864 billion from Rs 1.494 billion for the first nine months of 2017. Consequently, the growth of the net operating income was hampered, restricting it to 20.28% to reach Rs 41.456 billion.
Operating expenses at Rs 17.189 billion for the period, reflected the Bank’s success in managing its overheads with an increase of 16.54% despite salary increments and the costs of expansion. As a result, the Bank reported a profit before VAT and NBT of Rs 24.267 billion for the nine months, an improvement of 23.07%.
The VAT and NBT on Financial Services for the period amounted to Rs. 4.213 billion compared to Rs. 3.486 billion paid in the corresponding period last year, reflecting an increase of 20.86%.