Bank Alfalah Supports the IBA by Donating Rs 33 Million
Bank Alfalah’s Chief Executive Officer, Atif Bajwa said, “We are pleased to join hands with the IBA to improve access to quality education in Pakistan. Apart from financial support, we hope our employees can also play a meaningful volunteer role by adding value/ mentoring students enrolled in IBA’s MBA program.”
The Institute of Business Administration ranks amongst Pakistan’s most reputable business schools. It is also globally renowned for its robust academic programs and forward-looking approach. Dean and Director, IBA Dr. Ishrat Husain said, “We are grateful to Bank Alfalah for their generous support to IBA in its endeavor to become one of the top business schools in the region and then globally. Investment in Intellectual and physical capital are necessary to achieve this goal and support such as provided by Bank Alfalah will facilitate us in our journey.” Bank Alfalah will be represented on the Board of Trustees of the Endowment Fund.
Supporting sustainability through a ‘Beyond Philanthropy’ approach is a key agenda priority for Bank Alfalah. The Bank is committed to working with reputable community partners to convert simple ideas into meaningful opportunities for all and hence fulfil its goal of good corporate citizenship.
Healthcare Centre Opens in Baluchistan Through Support by Employees of the Abu Dhabi Group’s Member Companies
Bank Alfalah’s CEO Atif Bajwa said, “I am proud of the community spirit and solidarity demonstrated by Bank Alfalah’s employees and other member companies of the Abu Dhabi Group. The total employee contribution towards the 2008 earthquake relief was approximately Rs18.4 million –a remarkable demonstration of the collective strength of our people. I am optimistic that this health care centre will support the Government of Baluchistan in its efforts to provide quality healthcare to the people of this province and am grateful to them for their support towards this initiative.”
In the aftermath of the 2008 earthquake, the Abu Dhabi Group undertook an initiative to support the victims of this disaster through requesting employees of Bank Alfalah, Warid and Wateen to contribute one-day of their salary as donations. Today, based on those employee contributions, a fully operational mother-child healthcare centre with medical equipment, ambulances and medicine provisioning has been successfully completed in Baluchistan.
Supporting sustainable community causes are key priorities for Bank Alfalah and the Abu Dhabi Group. They remain committed to growing in alignment with the core principle of responsible finance and giving back to communities and their employees play a meaningful role in helping them achieve this objective, both through financial support and volunteerism.
Bank Alfalah Supports KSBL by Donating Rs 100 Million over 2012-2015
Bank Alfalah’s Chief Executive Officer, Atif Bajwa said, ‘We are pleased to play our part in strengthening the objectives of KSBL, as education is a key priority on the Bank’s corporate social responsibility agenda as well. At Bank Alfalah we encourage a two-pronged approach which incorporates financial investment towards meaningful community causes coupled with employee volunteer programs, in order to create measurable and sustainable impact in our communities. We are optimistic that initiatives such as KSBL will go a long way in improving the standards of education in Pakistan and will help bring them closer to global benchmarks in the future.’
The Karachi Education Initiative entered into a comprehensive Strategic Collaboration with the Judge Business School, University of Cambridge in 2009. As per this arrangement, Cambridge has taken a strategic lead role in setting up the KSBL including, faculty recruitment, faculty planning and development, curriculum design, and establishment of applied research.
Responsible Finance and Sustainability through a ‘Beyond Philanthropy’ approach are key agenda priorities for Bank Alfalah. The Bank is committed to growing in alignment with the core principle of responsible finance and working with community partners to convert simple ideas into meaningful opportunities for all.
Bank Alfalah Reports Impressive Growth in Third Quarter Earnings
The Bank’s asset base rose to Rs.515,665.326 million at September 30, 2012 from Rs. 468,173.802 million at year end 2011, further solidifying the Bank’s financial position. A consistent growth of over 13% was reflected in the profit after taxation figure, which was posted at Rs. 3,398.893 million for the nine month period ended September 30, 2012, compared to Rs. 3,001.709 million earned during the same period last year.
Profit before taxation ended up at Rs. 5,219.045 million for the nine month period ended September 30, 2012, reaching close to the profit before taxation of Rs. 5,433.718 million earned for the full year 2011. An impressive growth in revenue close to 11% was reported with revenue reported at Rs. 18,926.435 million for the nine month period ended September 30, 2012, against Rs. 17,076.062 million reported for the same period last year.
Additionally, a key indicator reiterating Bank Alfalah’s robust management and effective controls was the NPLs to gross loans ratio – this has been reasonably well maintained and stands at 8.81%, reflecting a better position vis a vis that of peer banks as well as the industry infection ratio. Whilst maintaining a low NPL ratio compared to the industry average, adequate provisioning has been maintained against the classified portfolio.
Atif Bajwa, Bank Alfalah’s Chief Executive Officer, said, “Our financial results for the third quarter 2012 demonstrate continuing strong performance in our key areas of business. Our 10.14% growth in balance sheet, coupled with profitability growth of 13.23%, are both major indicators of the sound shape of the Bank. Further, despite the challenging environment, our lower NPLs to gross loans ratio of 8.81% is a result of our emphasis on credit discipline. We continue to strive towards building upon this positive momentum and to serve our customers better.”
With a stable performance for the third quarter 2012, the Bank reported an earnings per share of Rs. 2.52 for the nine month period ended September 30, 2012, improving from Rs. 2.22 reported for the nine month period ended September 30, 2011.
Standard Chartered Bank Launches First Islamic Euro Nostro Account – Bank Alfalah is the first bank to sign up for this product
UAE, 2 September, 2012 – Standard Chartered Bank today announced the launch of the industry’s first Islamic Euro Nostro Account. Islamic banks across the world will now be able to earn Shariah-compliant profits on their account balances at Standard Chartered Bank Germany Branch in Frankfurt. Bank Alfalah Limited, one of the leading banks in Pakistan is the first to sign an agreement with Standard Chartered Bank for Islamic Euro Nostro Account at the recently concluded “Bankers Conference 2012” which was held in Istanbul, Turkey.
The Standard Chartered Saadiq EUR clearing Account utilises a Shariah-compliant account sweep facility. At the end of each business day, available EUR balance in Client’s Saadiq clearing account will be invested using the Islamic finance mode of Murabaha. Profit generated from these transactions will be credited on a monthly basis.
“Following the success of our Saadiq US Dollar Nostro Account last year, we have identified a need to extend this innovation to our Euro clients,” said Afaq Khan, Standard Chartered Saadiq’s Chief Executive for the Bank’s Global Islamic Banking business. “We would like to congratulate Bank Alfalah for being the first financial institution to benefit from this unique Shariah-Compliant structure.”
“We congratulate Standard Chartered for leading the way in Islamic Banking and introducing this innovative product. Standard Chartered Bank has always been one of our valued correspondent banks and we are proud to be the first to sign up for this product” said Ali Sultan, Group Head, Treasury & Financial Institutions Division, Bank Alfalah.
The Saadiq EUR Nostro Accounts will be available to clients globally, across SCB network. The facility allows Financial Institutions to earn profits on available EUR balances in their accounts and provides Shariah-Compliant account reporting statements as well as a full range of commercial and treasury payment capabilities. It also provides a full suite of beneficiary deduction and principal protected products for incoming and outgoing payments and the ability to customize transaction fees on multiple levels – by customer, beneficiary, country, branch or code word.
Anurag Bajaj, Global Head of Clearing and Liquidity Management, Standard Chartered Bank, commented: “The launch of the Islamic Euro Nostro Accounts is a direct consequence of our client-led approach. We have been able to deliver another industry first through frequent client interaction and feedback.”
The Third Middle East, North Africa and Pakistan and Turkey, Bankers Conference was held from the 17th to the 19th of September, 2012 in Istanbul, Turkey. The conference was titled, “Fragile West, Resilient East” and addressed the opportunities, trends and challenges of the banking industry in MENA. More than 100 senior bank representatives from Morocco, Egypt, Lebanon, Jordan, GCC, Iraq, Turkey and Pakistan attended the three-day conference.
 A Nostro account is established in a foreign country and usually in the currency of that country for the purpose of carrying out transactions.
 Standard Chartered Saadiq is the Bank’s global Islamic banking arm
To ensure Standard Chartered’s products comply with the principles of Shariah, the Bank is advised by an independent committee comprising three of the world’s most renowned Shariah scholars – Dr. Abdul Sattar Abu Ghuddah, Sheikh Nizam Yaquby and Dr. Mohamed Ali Elgari.
Bank Alfalah to launch first student ISIC co-branded debit card in Pakistan
Mr. Atif Bajwa, CEO Bank Alfalah said on the occasion, “The youth of Pakistan represents 40% of our population, and it has emerged as a potential untapped customer segment that has unique needs and preferences; be it for education, travelling, dining or interest based activities. We are confident that this partnership will give us the advantage to be the first financial institution in Pakistan to not only recognize the emerging needs of the youth but also be fully equipped to offer them countless customized student benefits and service options along with readily accessible funds, locally and internationally through the recognized ISIC global outreach program menu that has been built over 50 years of insights into this particular segment.”
Mr. Qaiser Raza Sheikh, CEO Alive Asia said, “ISIC is very excited to have Bank Alfalah in Pakistan as their banking partner of choice. We are most excited about providing the youth of Pakistan access to over 41,000 discounts at over 126,000 locations worldwide and foresee our partnership with Bank Alfalah strengthening with time as we create and provide immense value for money to the students and youth of Pakistan.”
Bank Alfalah celebrates independence day with immense fervor; Bank maintained historical monuments lit up in national colours.
Speaking on the occasion, Atif Bajwa CEO of Bank Alfalah said, “Bank Alfalah has been serving the country since fifteen years and we feel honored to have touched the lives of millions of Pakistanis, in an effort to play a part in the progress and growing prosperity of this great nation. We wish this great nation happy 65th independence day and look forward to a richer and even more rewarding tomorrow.”
IFC to design new SME Banking Business Model for Bank Alfalah – Bank’s service capabilities will strengthen significantly
This initiative will greatly strengthen Bank Alfalah’s capabilities to service the bank’s SME customers with extensive solutions and expand its market share in this fast growing segment. Mr. Atif Bajwa, CEO Bank Alfalah said on the occasion, “There is tremendous growth in the small-scale entrepreneurs in Pakistan; however they have been long troubled getting the financing access and right financial advisory services for their financial and banking needs, which limits their growth prospects. Our strategic focus for the coming years is to bridge this gap and become partners for our SME. Our interest in seeking help from IFC is intended to strengthen and refine such capacities and attain the next level of efficiency by offering our customers an assortment of asset and liability products along with dedicated platforms of convenient, easy to use, low cost transaction solutions and advisory services across our far reaching branch network.”
He continued, “IFC carries a rich history of extending specialized services in developing and refining business strategies across various emerging economies around the globe, particularly our region. We are certain that with their assistance and State Bank of Pakistan’s support, we will become fully geared to unleash the promising potential of this significantly under banked sector and the most fundamental source of economic development and growth of the country in the coming years.”
Kaiser Naseem, Head of IFC’s Bank Advisory Services in the Middle East and North Africa said, “This visionary project by Bank Alfalah will help in bringing SME customers at the forefront of the banking sector’s focus in Pakistan and the success of this joint initiative will surely demonstrate to the financial market the tremendous benefits of serving this segment in the country.”
Bank Alfalah further strengthens its money transfer services, signs-up with MoneyGram for AgentConnect
Syed Hassan, Head of Financial Institutions Division at Bank Alfalah said, “Being a leading player in the banking industry, our primary focus is to take care of our customer’s diversified needs and signing up for AgentConnect will greatly help us in serving our customers’ money transfer needs more efficiently. We are also making head way in building our remittance offering through this platform and plan to launch tailor-made remittance products in the near future.”
“We are delighted to have gone one step ahead in further strengthening our long standing relationship with BankAlfalah through AgentConnect. Bank Alfalah has been our strategic partner in building an extensive remittances service network throughout the country and we are certain that with AgentConnect, we will collaboratively deliver enhanced value to our customers.” said Reza Samad, MoneyGram’s Country Manager to Pakistan at the signing ceremony.
Bank Alfalah Limited posts a profit before provision and taxation of Rs. 9.7575 billion in 2011.
Bank Alfalah made a profit before provision and taxation of Rs. 9,757.5 million for the year ended December 31, 2011, as compared to Rs. 5,603.6 million in 2010, registering a significant improvement of 74 percent over the previous year. The meeting was chaired by Abdullah Khalil Ali Mutawa in the absence of Sheikh Hamdan Bin Mubarak Al Nahayan. Other Board members who graced the occasion were Khalid Mana Saeed Al Otaiba, Ikram ul Majeed Sehgal, Nadeem Iqbal Sheikh, and Atif Bajwa (CEO Bank Alfalah).
The Directors at the AGM said that the Bank’s deposits grew by 13.34 percent to Rs. 401.248 billion as compared to last year. Total assets grew by 13.78 percent to Rs. 468.174 billion while gross loans and advances remained stable, marked by a nominal decline of Rs. 7 billion. There was a significant increase of 46.82 percent in net investments complimenting the overall shift of focus of the banking industry towards investments particularly in government securities. The Islamic banking business recorded an increase of 47.48 percent in profit before tax to Rs. 1,430.5 million from Rs. 969.9 million in 2011 remaining the second largest Islamic Banking Network in Pakistan with 85 branches.
Bank Alfalah opened 20 new branches in 2011 taking the total number of branches to 406 spanning 158 cities, including 7 international branches in Afghanistan and Bangladesh and 1 off shore unit in Bahrain.
A 15.78 percent increase was recorded in shareholders’ equity which went up to PKR 22.84 billion from PKR 19.727 billion in 2010 and the Board of Directors have announced a cash dividend of 17.5 percent to all shareholders.
Atif Bajwa, Chief Executive Officer (CEO) of Bank Alfalah, said: “The performance indicators of the year 2011 are testimony of the Bank’s commitment to remain focused towards technological advancements, innovation and unparalleled customer experience to provide world class financial services and solutions to its customers while sustaining growth, profitability and greater value to the stakeholders of the Bank.”
He continued, “We attach prime significance to ensuring satisfaction of our valued customers and taking care of their varying needs. To serve our customers more efficiently, we continue to streamline our processes, reduce turnaround times on transactions and offer specialized services and customized products. Our people continue to be our most valued asset, and have been instrumental in helping the Bank achieve this commendable progress. It is because of them that Bank Alfalah enjoys being one of the leading banks of Pakistan.”