Despite the revenue pressure being faced by the Banking Industry, Burj Bank Limited has had a fairly steady run through the first nine months of 2015 as compared to the previous year. The Bank has made strategic efforts to reduce the cost of fund, enhance consumer assets portfolio and contain operating cost.
The Bank improved its CASA mix while maintaining its total deposit base. Given the reduction in discount rate, the bank strategically grew its consumer assets portfolio. The net spread earned for the period witnessed a dip by 12.5% as compared to same period last year. However during the year, Bank's Net Profit Margin improved to 43.9% from 29.3% (same period last year) as a result of an improved asset & liability mix. Reduction in administrative expenses along with improved revenue and reduced provisioning on financing portfolio helped in lowering the loss before tax by 17.6% as compared to same period last year.
The trends thus far show that the Bank is poised for growth; however shortfall in regulatory capital has continued to be the chink in their armour, hindering the Bank from reaching its full potential. As per sources, the Bank has taken firm steps to resolve its capital shortfall in the near future. -PR
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