Karachi, September 2, 2020: JS Bank has reported an incredible turnaround in its profitability by posting a profit before tax of PKR 1,472 million for the half-year ended June 30, 2020, as compared to a loss before tax of PKR 597 million over the corresponding period last year.
The increase in profit is mainly due to remarkable growth in the Bank’s deposits which crossed PKR 400 billion, resulting in improvement in net interest income and an upswing in fee-based income. The break-up value per share of the Bank as of June 30, 2020, was PKR 15.6 with earnings per share of PKR 0.66 for the half-year ended June 30, 2020.
Significant increases seen in the half yearly profits
“We have witnessed a significant increase in the half-yearly 2020 profits due to a dedicated focus on business growth and associated income which reflects the trust of our customers and the dedication of our teams,” said Hasan Shahid, Chief Financial Officer, JS Bank.
Read more: JS Bank extends Rs. 110 Million for Immediate COVID-19 Response
With the banking industry facing continued challenges due to the economic and financial impact of COVID-19, the Bank’s strategy is based on a continuous process of identifying new opportunities that enable business enhancement. The Bank strives to fulfil customer needs through innovative products and services, strong alliances, and automation of service delivery.
JS bank committed to role as catalyst towards progress
Committed towards its role as a catalyst towards the progress and prosperity of Pakistan, the Bank is continuing its journey of success through shared value creation.
Growing from strength to strength, JS Bank reported a profit before tax of PKR 628.5 million for the quarter ended March 31, 2020 as compared to profit before tax of PKR 54.7 million over the corresponding period last year, an incredible 1000% increase.
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For the three months ended 31 March 2020, JS Bank Limited’s interest income increased 38% to PKR12.96B. Net interest income after loan loss provision increased 33% to PKR2.45B.
JS Bank is one of the fastest-growing banks in Pakistan, with 360 branches in 180 cities including one international branch. The Bank is a leader in the digital banking space and distribution of insurance solutions.
What caused the surge in profits?
Profitability showed a marked increase primarily due to markup and commission income, FCY income and gain on sale of securities. The breakup value per share of the Bank as of March 31, 2020 is PKR 13.9 with the earnings per share of PKR 0.29.
Read more: JS Bank extends Rs. 110 Million for Immediate COVID-19 Response
In addition, the Bank’s deposits grew to PKR 379.25 billion whereas advances level maintained at PKR 235.1 billion, during the current quarter, which reflects a continued focus of the Bank on prudent growth and core business activities. Further, investments increased from PKR 142.6 billion to PKR 183.2 billion during the same period, up by 28.5%.
The country’s deposit percentage has also increased as the economy has made a recovery after getting control of the pandemic.
The selective lockdowns imposed by the government kept the economy going while ensuring that the virus did not spread. This has led to an increase in consumer confidence.
While neighbouring economies still suffer, Pakistan is back on track.
Overall industry trends during COVID-19
This is despite an overall trend in the industry which saw a decreasing spread (margin) as the State Bank cut the policy rate. This meant lower interest revenue with higher payments to depositors.
In the wake of the COVID-19 pandemic, the State Bank of Pakistan cut the policy rate by 75 basis points on March 17, from 13.25% to 12.5%. Then in an unprecedented move, the SBP cut the policy rate again just one week later on March 24, by 150 basis points to 11%.
Read more: JS Bank to support SIUT with 10 Million against COVID-19
With the banking industry facing continued challenges due to the economic and financial impact of COVID-19, JS Bank is revisiting its business strategy to cater to changing ground realities.
You may not be able to help everyone, but you can help someone. Play an active part in charity and make someone’s life better.#JSBank #BarhnaHaiAagey pic.twitter.com/Actv450IwR
— JS Bank (@JSBLPak) September 5, 2020
Emphasizing WOW customer experience, the Bank is realigning itself into an agile, digital-focused bank targeting well-defined target markets through a mix of innovative products and services.
The team at JS bank wants its vast network of 360 branches in 180 cities across Pakistan to serve as a critical and safe lifeline for business transactions to take place. This will help businesses conduct their regular transactions conveniently to ensure business activity picks up again.
JS bank also offers internet banking services and mobile application banking that allows individuals to conduct their activity safely, without human contact, from the comfort of their home.
GVS News Desk