Net profit recorded for fourth quarter ended 31 December 2015 was US$ 2.3 million as against US$ 4.8 million achieved in last year same period, a decrease of 52% on fourth quarter 2015, was mainly due to additional specific and general provisioning considered in 2015.
Interest income increased by 4% over last year figures, from investments and loans portfolio, however, the net interest income increased by 1% compared to last year.
Non- interest income relating to fee and commission decreased by 17% compared to last year. However, significant gains were realized on foreign exchange and resulted an increase of 183% compared to last year 2014.
Total operating expenses reduced by 6% , compared to last year. Cost to income ratio increased to 34% from 25% last year, mainly due to decline in net operating income after provision for credit losses.
Total assets grew by 20% and Return on average equity dropped to 8% for the year ended 31 December 2015, as compared to last year 2014. Capital adequacy ratio remained strong at 44% and liquidity ratio (ratio of liquid assets to total assets) improved to 64% compared to last year 46%. Though, non-performing loans to gross loans increased to 19% as at 31 December 2015, from 1.5% in the previous year, substantial specific provisioning has been taken to cover 38% of the non- performing loans.
Alubaf, CEO, Mr. Hasan Abulhasan expressed that significant new measures are being taken to align with the challenges faced by the Bank and expects a gradual growth for the year ahead 2016, due to continued economic uncertainties.