Performance review: Central bank’s profit clocks in at Rs311.8b
Earnings rise 32.2% compared to Rs235.9 billion in fiscal year 2012-13.
KARACHI:
The consolidated profit of the State Bank of Pakistan (SBP) and its subsidiaries for 2013-14 was clocked in at Rs311.8 billion, up 32.2% from the consolidated earnings of Rs235.9 billion recorded in the preceding fiscal year.
Released on Friday along with the central bank’s annual performance review for 2013-14, the consolidated profit and loss account showed interest earned by the central bank amounted to Rs306 billion in the last fiscal year, which is 22% higher than the mark-up earned during 2012-13.
The mark-up expensed in the last fiscal year almost doubled to Rs15.3 billion while the net exchange gain remained Rs14.1 billion, up 110.5% from Rs6.7 billion in the preceding fiscal year.
Total assets of the central bank expanded 19.5% in 2013-14, as they amounted to Rs4.8 trillion on June 30. Total liabilities also increased 19.1% during the last fiscal year. The difference of total assets and total liabilities – also known as net assets – amounted to Rs688.8 billion, up 22% from the preceding year’s figure.
The SBP’s annual performance review also highlighted major developments in different areas. For example, the performance review claims the SBP strengthened the regulatory framework for financing to agriculture, microfinance, SMEs, housing and infrastructure during 2013-14 by issuing new prudential regulations and guidelines in line with best international practices.
It revised Prudential Regulations for Agriculture Financing, enhanced indicative credit limits, revised the list of eligible items and launched awareness creation programmes for banks and farmers last year.
The SBP said the microfinance banking sector started to benchmark itself with peers in the banking system in all key performance areas during the last fiscal year. “Current performance of microfinance is marked by growth in all key areas, including outreach, loan portfolio, deposit base, profitability and equities,” it said.
The SBP also highlighted the creation of a mortgage liquidity facility, which is currently being incorporated, as an achievement that will address the long-term funding constraints in expanding housing finance in the country.
Referring to the first half of 2013-14, when Pakistan’s balance of payment position remained largely weak, the annual performance review said foreign exchange reserves continued to fall with the exchange rate depreciating by 5.4%.
During the second half of the fiscal year, the SBP said, the overall balance of payment improved significantly. While the external current account deficit remained low, increased inflows in the form of CSF money, 3G licence fee, receipts of Euro bonds and loans and grants from multilateral and bilateral sources considerably turned the balance of payment position into surplus and helped the SBP build its foreign exchange reserves, it said. “The SBP remained vigilant and kept a check on the excessive volatility in the exchange rate,” it added.
As for Islamic banking, the annual performance review said total assets of the industry recorded growth of 20.5% in 2013-14. The Islamic banking industry’s asset base increased to more than Rs1 trillion and constituted nearly 10% of the overall banking industry by the end of the last fiscal year.
Deposits of the Islamic banking industry increased to Rs932 billion in June representing a share of 10.6% in the overall banking industry deposits, it said.
Published in The Express Tribune, November 1st, 2014.
The consolidated profit of the State Bank of Pakistan (SBP) and its subsidiaries for 2013-14 was clocked in at Rs311.8 billion, up 32.2% from the consolidated earnings of Rs235.9 billion recorded in the preceding fiscal year.
Released on Friday along with the central bank’s annual performance review for 2013-14, the consolidated profit and loss account showed interest earned by the central bank amounted to Rs306 billion in the last fiscal year, which is 22% higher than the mark-up earned during 2012-13.
The mark-up expensed in the last fiscal year almost doubled to Rs15.3 billion while the net exchange gain remained Rs14.1 billion, up 110.5% from Rs6.7 billion in the preceding fiscal year.
Total assets of the central bank expanded 19.5% in 2013-14, as they amounted to Rs4.8 trillion on June 30. Total liabilities also increased 19.1% during the last fiscal year. The difference of total assets and total liabilities – also known as net assets – amounted to Rs688.8 billion, up 22% from the preceding year’s figure.
The SBP’s annual performance review also highlighted major developments in different areas. For example, the performance review claims the SBP strengthened the regulatory framework for financing to agriculture, microfinance, SMEs, housing and infrastructure during 2013-14 by issuing new prudential regulations and guidelines in line with best international practices.
It revised Prudential Regulations for Agriculture Financing, enhanced indicative credit limits, revised the list of eligible items and launched awareness creation programmes for banks and farmers last year.
The SBP said the microfinance banking sector started to benchmark itself with peers in the banking system in all key performance areas during the last fiscal year. “Current performance of microfinance is marked by growth in all key areas, including outreach, loan portfolio, deposit base, profitability and equities,” it said.
The SBP also highlighted the creation of a mortgage liquidity facility, which is currently being incorporated, as an achievement that will address the long-term funding constraints in expanding housing finance in the country.
Referring to the first half of 2013-14, when Pakistan’s balance of payment position remained largely weak, the annual performance review said foreign exchange reserves continued to fall with the exchange rate depreciating by 5.4%.
During the second half of the fiscal year, the SBP said, the overall balance of payment improved significantly. While the external current account deficit remained low, increased inflows in the form of CSF money, 3G licence fee, receipts of Euro bonds and loans and grants from multilateral and bilateral sources considerably turned the balance of payment position into surplus and helped the SBP build its foreign exchange reserves, it said. “The SBP remained vigilant and kept a check on the excessive volatility in the exchange rate,” it added.
As for Islamic banking, the annual performance review said total assets of the industry recorded growth of 20.5% in 2013-14. The Islamic banking industry’s asset base increased to more than Rs1 trillion and constituted nearly 10% of the overall banking industry by the end of the last fiscal year.
Deposits of the Islamic banking industry increased to Rs932 billion in June representing a share of 10.6% in the overall banking industry deposits, it said.
Published in The Express Tribune, November 1st, 2014.