Foreign Banks Continue to Make Handsome Money

Foreign banks operating in Pakistan have succeeded in booking profits in the first quarter of 2016 in contrast to local big banks, which had a tough period to record a decline in their profit growth.

NIB Bank, Samba and Standard Chartered Bank recorded handsome growth in profitability within their target market and limited branch operations mainly in cities.

NIB Bank posted a profit growth of 334% in first quarter of 2016; Samba Bank also recorded a growth of 85% and Standard Chartered Bank witnessed a growth of 15 percent in its profitability.

The beginning of 2016 was quite impressive for the foreign banks which also encountered a tough operational situation in the past few years but their business strategy worked well to recover their profitability journey despite the soft monetary policy period.

Standard Chartered Bank

The bank posted a profit of Rs 3.209 billion in the first quarter of 2016 as compared to Rs 2.776 billion in the similar period of 2015.

The bank not only controlled its expenses through optimization of branches operation and introduction of digital banking services but it also made money through interest income, which are usually higher than local banks.


Samba Bank

Saudi Arabia-based Samba Bank reported a growth of 85 percent in its quarterly profits.

It earned money through interest income and different avenues including gain sale of securities, dividend income, fee commission and brokerage income.


NIB Bank

The handsome profit growth of NIB Bank could open doors for its management to again consider a merger with MCB or sell off shares.

It’s important to note that profitability is also because NIB Bank sold out its subsidiary, PICIC Asset Management, in this quarter and that is reflected on its balance sheet.


The three banks usually have targeted business in corporate sector whereas their customers availing consumer banking services mainly belong to high income group due to comparatively good standard of services against higher charges.

The banks limited operations, good service standard and technological level as compared to local private banks gave them an edge in the market.

These foreign banks are listed at Pakistan Stock Exchange besides there are other banks operating in Pakistan such as CitiBank, Deutsche Bank AG, Industrial and Commercial Bank of China Limited and Bank of Tokyo-Mitsubishi but at limited scale.

It is an irony that all three banks despite making profit did not declare any interim dividend for shareholders though leading banks such as HBL, UBL and MCB recorded decline in profit growth but they announced Rs 3 to 4 per share interim dividend to shareholders.

    • I second that but after opening account in Bank Alfalah I found that SCB is very expensive. They charge more money on ATM cards, Cheque Books and others as compare to Bank Alfalah.

      And I am not Bank Alfalah employee (as people will start saying so) :P

      • Everyone has there own experiences, I never had an account, Opened one in bank alfalah, was happy bt now i cant get any transaction from abroad, dont know what is the problem, Banks behave really gud before opening an account, once u have opened they treat u poorly n ur lost :/

        • I receive transactions from abroad easily, no issue at all. What kind of issue you are facing when trying receiving money from abroad?

          You can just go to manager room and directly tell him/her your issue. If they are still not helping you then send a complaint email to their superiors (get email from website).

          This is not for bank alfalah, but for every institute.

          • There is no such thing as customer service in our county, in this digital age of finger prints they still b!tch about signatures not be matched for hours

          • may be but i have salaried account with SCB no ATM Card annual ee no inter and intra bank transfer charges ATM card best for online shopping even foreign sits as well . issue solved very soon n 247 helpline

        • For the first time , you have to talk to Manager. He will verify from where are you getting this money. After that , you will receive just like normal operation. Same thing happened with me for Bank Alfalah

      • Exactly
        like the 100rs Charges on every transaction if your account balance is less then a lac

        • I am having a saving account and a salary account at SCB. They are not deducted any amount for minimum balance. And their services are the best among all the banks available in Pakistan. I suffered a lot at Alfalah, MCB, Allied and UBL. Giving my review based on their normal banking + credit card facilities

    • They charge Rs. 300 on ATM withdrawals. At least I once used my Payoneer card with it and they charged Rs. 300.

  • Every Bank has its pros and cons. I am not Bank Alfalah employee but their service is best in Pakistan and even better than so called customer friendly bank Standard Chartered Bank. My mother is an arthritis patient and oneday she send to Clinix Pharmacy in Jail road Lahore to purchase medicines from her Scb card and I used the card and they called my mother. They said your has been mis used and she said I had given him to purchase medicines but they kindly make supplementary card of your son. After one week I used her Bank Alfalah credit card but they didn’t called my parents that your card has been mis used and what is the reason. I asked a bank alfalah representative that if I used my parents or other family members cards and he said that we know to run business. On 24th April 2016 I went to Scb johar town branch in Lahore and they said first you to deposit at least 25 thousand before opening account in scb, I was dejected and went away from scb. Then I went to alfalah corporate branch in main boulevard branch in gulberg lahore to open my account. They said to me are employed or free and I said I work in Telenor as contact center as postpaid supervisor. They said what is your salary and currently how money you had. I said I have currently only 8 thousand and they said we will open your account even at 3 thousand rupees and I was very happy that moment. After 10 days I applied for my cheque book they gave in 3 working days and I request for ATM card and after I received it in 1 week. So conculsion is that no bank is perfect especially in Pakistan but alfalah is better than scb because they give you relaxation by using your any family memberun, any card debit credit visa master platinum, diamond or whatever category etc. Eastern countries banks are more friendly as compared to their western counterparts. Now I am earning 65 thousand and leased suzuki wagon r vxl from alfalah through car Ijrah islamic banking but they have the best deal because their installments remains same through out means that they cannot increase or decrease the installment in the given tenure and 1st year insurance can be paid monthly instead of upfront. Other banks in Pakistan give you notice that means the installment is going to be increased. My family leased applied for Honda city 2011 model from scb sadiq and they are big cheat both their islamic and conventional bank means that extra charges hidden charges notice for installment increase and on 13 September 2016 thank god we cleared the car from scb and it was our worst leasing experience. We paid 40% down payment in 2011. Now he have released civic vti 2016 from dubai islamic bank and it is the best bank for leasing new used or imported car. Best bank for car leasing are dubai islamic bank burj bank faysal bank and alfalah. Alhamdullah we are facing from alfalah and dib. Scb citi bank are cheat don’t know about HSBC but my brother has account in barclays dha lahore branch and believe me they are much better than scb. They have just 2 branches in lahore 1 in gulberg and 2nd in dha.

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