Since the privatization in 1997, Bank Alfalah has
remained consistent in its mission to excel in providing innovative
products and services to its customers. As a result of that, the year
2003 has been most favourable for your Bank inspite of varying market
conditions. We recorded significant increase in our business volumes
coupled with the broadening of our network and clientele base.
The democratization process was
completed during the year and the country is now in the process of
warming its relations with the neighbours. Consequently the political
stability has translated into direct economic benefit for Pakistan. GDP
growth has exceeded the target of 4.5% to 5.1%. The Foreign Exchange
Reserves have been recorded in excess of US Dollar 12 billion and
foreign investments have increased by almost 100%. The national export
targets were exceeded by 20% and surpassed US Dollar 10 billion mark.
The economic package of US Dollar 3 billion extended
by the United States will help alleviating the poverty, which has been
hampering the economic revival. The capital market performance has been,
once again, very impressive and KSE has performed at par with all other
stock markets of the world.
Bank Alfalah has grown 51.84% in its
total assets and 101.35% in its equity. The Bank netted record pre tax
profit of Rs. 3.506 billion, a 291.85% increase over the corresponding
period last year, which includes capital gains on Federal Government
securities of Rs. 2.19 billion. The deposits of the Bank rose to Rs.
76.7 billion which is 48.4% higher than corresponding period last year
and indicative of increasing customers' confidence in your Bank, because
of its superior services and healthy practices. The Loans and Advances
figure stood at Rs. 50.37 billion, an increase of approximately 71% over
the last financial year. This portfolio has been supplemented keeping
the Bank's stringent and prudent policies in view.
BRANCH NETWORK AND CONSUMER BANKING:
The Bank is fully aware that the
branch network has direct implications on the services that it provides
to its customers. In the year 2003, nine (9) commercial banking branches
and five (5) Islamic banking branches were added to the Bank Alfalah
network extending our coverage to fifty-nine (59) branches in
twenty-three (23) cities nationwide. We are confident that a well
integrated branch network, offers greater potential for serving a larger
client base through high value products.
Bank Alfalah continually endeavours to develop a
wider spectrum of innovative financial products based on consumer needs.
The Alfalah Visa Card has been recognized by the Visa International as
the first credit card in South Asia to have crossed the 100,000th mark
in the shortest timeframe.
Alfalah Car Finance is another market leader offering
superior value and convenience to its clients. At the end of 2003, its
portfolio crossed Rupee five billion mark.
Consumer Durable financing was launched in August
2003. This product too has also met a considerable success in the
market. Similarly, the overwhelming response received to the Home
Financing scheme launched by the Bank during the last quarter of 2003
offers great potential of becoming yet another important product of the
In the latter half of 2003 Phone Banking was launched
with a view to establish a more direct contact with our clients. This
support centre has greatly facilitated the overall sales efforts of the
A depressive interest rate
environment has spurred the competition for scarce banking assets in
local financial industry. While Bank Alfalah remains a key player in the
market, however, it treads with caution so that the quality of its
credit portfolio is not compromised.
The Bank has employed a proactive approach in the
form of a well-designed and transparent credit approval process. This
process benefits from an inherent system of checks and balances at each
FOREIGN TRADE, CORRESPONDENT BANKING AND TREASURY
OPERATIONS: Bank Alfalah offers
high quality service to its foreign trade clients. Customers are assured
of efficiency and timeliness when dealing with their overseas
counterparts. Our clients enjoy the benefit of our well-integrated
global correspondent banking network giving them greater global reach.
This comprises more than 200 financial institutions all over the world
signifying the favourable reputation that Bank Alfalah enjoys globally
as a stable and responsible banking institution.
During the year, the foreign trade volume of the Bank
has recorded an impressive growth and it has reached to the level of 8%
of total foreign trade of the country. The imports figure of Rs. 46.81
billion and exports figure of Rs. 44.27 billion represented an increase
of 38% and 34% respectively over the last year figures.
The Bank has also been fairly active in the
inter-bank market and enjoyed substantial lines of credit. The Treasury
Division added significant profitability to the Bank through its
intuitively priced transactions and proactive strategies for both
investment and realization of capital gains.
Despite the political and economic uncertainties, Bank Alfalah was able
to maintain its impressive credit ratings of AA- and A1+ in the long and
short term respectively. These ratings are indicative of a very high
credit quality and low potential for credit risk. These ratings have
been assigned by the PACRA, the leading credit rating agency of
Pakistan. These ratings have been awarded on the basis of a steady
improvement in organizational performance, augmentation in equity base
and increased sponsor backing.
HUMAN RESOURCE DEVELOPMENT:
Development of professional skills
and knowledge of the employees is essential for the efficient
functioning of any organisation. At Bank Alfalah appropriately designed
policies and practices have been instituted to achieve this strategic
Our state-of-the-art training centre at Karachi
remains indispensable in imparting valuable training to all our team
members. This has become especially important considering the pace of
change that the banking industry is exposed to. Consequently training
ensures that change is successfully navigated to discover potentially
beneficial opportunities that can be transformed into direct gains for
the Bank and its customers. This also positively impacts the confidence
levels of our employees translating into better job performance and
satisfaction. During the year 2004-2005 we aim to establish a similar
training and development facility in Lahore, Pakistan.
The future prospects for the local
economy and the banking industry in particular looks bright. Key macro
economic fundamentals have stabilized and are now on the road to
recovery. Consequently the Bank would like to take advantage of these
encouraging developments and continue its strategy of network expansion
and business volume augmentation.