Allied Bank Upgrades its Bahrain Operations

Allied Bank Limited has booked a provision expense of Rs. 13.3 million in its Bahrain’s operation mainly to adopt the advanced banking standards on par with the accounting policy of the operating country.

The adoption of the new standard by the overseas branch resulted in additional provisioning requirement of Rs. 13.3 million as of September 30, 2018, according to the quarterly financial report of the bank.

The amount of additional provision has been accounted for in the profit/loss of the current period and opening balance of retained earnings has not been adjusted as the amount is not material. There is no effect on the statement of the cash flow of the Bank, mentioned the report.

During the current year, IFRS – 9 “Financial Instruments” became applicable for ABL’s Bahrain Wholesale Branch. Accordingly, Bahrain Branch has changed its accounting policy and has followed the requirements of IFRS – 9 “Financial Instruments”, while determining the provisioning requirements against financial assets. IFRS – 9 “Financial Instruments” requires provision against financial assets to be determined under expected credit loss model, which was being previously determined under the incurred loss model as per the concerned regulatory regime.

Allied Bank Limited launched its first international branch in the Kingdom of Bahrain in 2011. It provides a wide array of financial services under the “Single Window” concept.

ABL’s operations through wholesale banking branch in Bahrain remained proactive in remittance and other relevant business-related opportunities in the Gulf region. It is hoped that ABL will improve its earnings with renewed operations and accounting systems and, being a Pakistani bank, give competition to other foreign banks in Bahrain.

In 2017, the bank posted a profit before tax of US$5.9 million in Bahrain, posting a yearly growth of 20% in profitability.

Bahrain is a highly competitive market not only for local banks but for foreign banks as well. Besides different foreign banks, Pakistani banks are also operating in this country including National Bank of Pakistan, Askari Bank, JS Bank, MCB Bank, Habib Bank Limited, Bank Alfalah, Bank Al Habib and etc.

All these banks are operating their wholesale banking branch in Bahrain. A wholesale bank serves corporate clients including government and large institutions compared with a retail bank that deals with customers of different income groups.

  • I hope is dafa apna ahmed awais ko design ka theka deka apna pasa barbad nahi kia hunga:DDD

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