Islamic bank heads to PMB: The Witness

Durban-based Albaraka Bank, which this week posted a pleasing 19,5% increase in profits for the 2008 financial year, is set to appoint a local representative to serve the Pietermaritzburg area.

The CEO of the major Islamic bank, Shabir Chohan, told The Witness that the move is the first step in a process that will ultimately lead to a branch being set up in Pietermaritzburg.

“We recognise Pietermaritzburg as being a very important area for us,” said Chohan.

The bank reported profits of R21,7 million and basic and diluted earnings per share increased significantly to 144,9 cents.

“We have expanded our branch network … and taken a proactive approach to arrears management. In this economic climate, we have chosen to visit clients who are in trouble. One has got to be sympathetic to clients … it is a very difficult time.

“However, while we increased our deposit book by R174,7 million, or 12,1%, as was to be expected in terms of the prevailing trading conditions, our gross advances book experienced a relatively slower growth of 6,9%, or R91 million,” Chohan said.

He added that the implementation of a new R15 million computer system will go a long way toward enhancing efficiency and customer service while ensuring that the bank conforms with international standards.

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