BAFL earns Rs3 billion in 9M2011

ISLAMABAD: Banking results continue to gather momentum as BAFL posted profit of Rs3bn (EPS Rs2.2) in 9M2011, up by hefty 100% as compared to Rs1.5bn (EPS Rs1.1) in the same period last year.

This improvement in earnings primarily emanated from higher net interest income (NII) which stood at Rs13.1bn (up 33%), thanks to better returns on advances and investments (up by an average 120-122bps ) amid higher interest rates with cost of deposits remaining almost flat, says a press release issued here on Tuesday.

Besides, higher topline growth, bottom-line is also supported by higher noninterest income of Rs3.9bn, up 16%YoY amid improvement in trading activity.

Despite a decline in provision against loans and advances by 57%, total provisioning remained almost flat to Rs2bn. This is on account of higher provisions against value of investments to Rs1.4bn compared to Rs0.6bn in 9M2011.

Alone in 3Q2011, the bank posted earnings of Rs1.1bn (EPS Rs0.81) compared to net profit of Rs0.4bn (EPS Rs0.31).

Leave a Reply