Bank Keshavarzi
Bank Keshavarzi wins the award this year owing to its dramatic transformation from a loss-making institution with little direction into one of Iran’s most profitable banks.
The bank was on the verge of extinction in 1998 with huge losses and costs spiralling out of control. Yet, following a successful restructuring of which cost cutting was an integral part, the bank was back on the path of sustainable profitability and growth by 2002.
That year, Bank Keshavarzi boosted net profit by almost 155% and lifted its ROE to a decent 18.6% from 7.3% in 2001. Its cost-to-income ratio – a key measure of bank efficiency – also improved to 85.8% from 91%.
By 2002, the bank had won more than 2.4 million customers in Iran, which was due in large part to innovative products and technology. For example, it installed 300 cash machines and 300 points of sale nationwide. It was also the first of the country’s banks to set up telephone banking services and a call-centre that operates 24/7.
