BoC posts Rs 3b PAT in 1Q, 2015
After completing its 75th anniversary year with a commendable
achievement of Rs. 20.3 billion PBT, BoC has reported Rs. 4.4 billion
PBT for the 1Q 2015 by achieving a 15% growth over 1Q of the previous
year. Profit After Tax (PAT) stood at Rs. 3.0 billion resulting in 15%
growth.
The Group reported Rs. 4.3 billion PBT resulting in a 10% growth over
the corresponding period of the previous year and the Bank dominates the
results of the Group accounting for 96% of the earnings and 97% of the
Group's assets.
PBT has mainly accelerated due to increased net interest income and
fee income. The Bank achieved lower interest expenses through improved
CASA mix (Current Account and Savings Account to total deposits)
resulting in a 34% increase in net interest income over 1Q, 2014.
Net fee and commission income have also increased by 25% to Rs. 2.1
billion contributing 14% to total operating income. Impairment charge on
loans and advances has increased by 17% to Rs.3.9 billion mainly due to
increase in individual impairment compared to that of the corresponding
period of 2014.
However, collective impairment provision showed a marginal increase
of 6% reflecting quality of the portfolio and prudential methods adopted
in credit management. Preserving its position as the first domestic bank
to achieve a trillion assets Balance Sheet the Bank's assets grew by 5%
to Rs.1.4 trillion as at end March 2015.
Loans and advances accounted for 58% of the Bank's assets base and
gross loans stood at Rs. 845.5 billion as at end 1Q, 2015 and showed a
marginal growth of 9% recovering from the slower credit growth that
prevailed during last year. Deposits accounted for 70% of the Bank's
liabilities as at the end of 1Q, 2015 and showed a slight decrease
compared to end 2014.
As at end of 1Q, 2015 the Bank's Return on Average Assets (ROAA)
ratio stood at 1.3% and Return on Average Equity (ROAE) ratio stood at
15.7% indicating a slight dip compared to end 2014 mainly due to
increased assets base and the Rs. 5 billion capital infusion made in
December 2014.
Meanwhile cost to income ratio showed an improvement from 42% to 39%
in line with the improved operational efficiencies.
The Bank's domestic liquid asset ratio was 26.6% as at the end of 1Q,
2015 while the off-shore liquid asset ratio was 31.7%. Both ratios stand
well above the Central Bank's benchmark of 20%.
The Bank maintained a better trade off between liquidity and interest
earning assets continuously under the excess liquidity scenario which
prevailed last year. Capital infusion of Rs. 5 billion and issue of Rs.
8 billion debentures helped to improve Tier I and Tier II Capital
Adequacy Ratios (CAR) as at end of 2014.
The Bank sustained CAR by maintaining Tier I at 8.6% and Tier II at
12.4% levels against the Central Bank's minimum of 5% and 10%. |