Afghanistan International Bank wins bank of the year award
By Sayed Jawad - Tue Dec 11, 10:59 pm
The Banker, one of the oldest publication in the banking industry during its annual awards ceremony in London last week recognized Afghanistan’s leading commercial bank — Afghanistan International Bank (AIB) as one of the best bank for the year 2012.
AIB put in an excellent performance in 2011 and continues to adhere to strong risk management policies, a capital adequacy ratio of 22%, and an 85 % liquidity ratio”.
The Banker is the world’s premier banking and finance resource. Read in over 180 countries around the world. The Banker has been providing global financial intelligence since 1926 and has built a reputation for objective and incisive reporting on major events.
In the meantime Afghanistan International Bank (AIB) looks to extend maturing business ties with UAE financial institutions whilst the two countries are drawn closer together through financial and social links.
Khalilullah Sediq, Chief Executive Officer of AIB earlier this month said, “Trade between Afghanistan and the UAE was already some AED2bn in 2011, which may sound modest but is actually a hugely important amount in an economy recovering from years of war.”
“The UAE is a key trading partner for Afghanistan, because of its location, good business envi-ronment, and the fact that the Afghan community within the UAE forms the second largest diaspora of Afghans after the United States. Targeting this inter-country economic activity therefore, has become a fundamental aspect to AIB’s growth strategy,” he added.
There are thought to be up to 200,000 Afghans living in the UAE. As UAE based companies continue to see commercial opportunity within the pre-emerging market of Afghanistan, it is essential for the economic development of Afghanistan that there exists a viable and trusted financial institution to support this activity.
The Afghan nascent banking system has been “tainted” after the collapse of Kabul Bank. Kabul Bank experienced a run on deposits in 2010, following the revelation that shareholders had used it as their personal funding vehicle. According to a report, published in March by the central bank, about $900m in loans were made to bank officers and insiders – including shareholders – with little or no collateral.
Only 5 per cent of the population of more than 30 million people have a bank account, according to World Bank estimates. After a profit of 378.9 million Afghani last year and 326.2m Afghani in 2010, AIB is expecting flat growth next year.