APS Bank posts Lm1.3m pre-tax profit

APS Bank Limited posted a pre-tax profit of just over Lm1.3m in 2000, and increase of nearly Lm600,000 compared to Lm772,616 in 1999. Part of this increase was, however, due to exceptional gains.
The positive performance last year is not only reflected in the marked increase in pre-tax profits but the bank’s balance sheet also shows strong growth with total assets standing at Lm121,427,674, an increase of 16 per cent over the previous year. Customer deposits rose by Lm15m to over Lm109m, while loans and advances grew by a modest 2.5 per cent to Lm31,151,327.
Interest remains the bank’s chief source of revenue. Net interest reached an all time high of Lm2,338,238, an increase of some 95 per cent over the previous year. Strong growth was also registered in non interest income, which rose by over 26 per cent to reach Lm1,578,170. This increase was mainly attributable to a rise in dealing profits and other operating income.
During 2000, the bank continued with its consolidation process by strengthening and integrating its internal operations. A new organisation structure giving more empowerment to all members of staff has been introduced.
Vacancies in key positions have been filled, marketing efforts were stepped up, and the new IT banking system is in its final stages.
Overheads rose by Lm571,698 to Lm2,079,468, with the increase being chiefly due to higher staff costs, advertising and expenses related to the new banking system. These increases reflect the Bank’s strategy to expand its business and its commitment to invest in human resources and new technology.
Provisions for bad and doubtful debts amounted to Lm529,724, the greater part of which, about 82 per cent relating to specific advances which were prompted by a revision to the bank’s policies and procedures.