Allied Bank
After a recapitalisation and a major restructuring of its operating model, Allied Bank radically increased its profitability, and, from a declining rate in the previous year, achieved a phenomenal 1480% profit growth.
Allied Bank’s organisation was redesigned to forge a flat, fast and agile corporate structure. The management initiated training and development programmes to upgrade the skill-set of its workforce. Heavy investments went into IT infrastructure to maintain and upgrade the large online network of 742 branches. The bank also launched internet banking and installed more ATMs. Such initiatives supported Allied Bank’s strategic decision to move from a branch-based distribution model to a multi-channel model, responding to customer demand for delivery channels choice.
Despite increasing its business volumes, the bank tamed its operating costs, resulting in a 4% increase in operating expenses against a 58% growth in income. Its cost/income ratio improved to 44% from 64% the previous year.
“2005 was the first year after the bank was recapitalised and we achieved a successful turnaround by substantive growth of the corporate portfolio through targeted lending to top-notch clients in the country,” says chief executive Khalid A Sherwani. “The bank has revamped its entire organisational structure in line with the requirements of the 21st century, building a cohesive management team and maintaining our lead on the technological front by having the largest online network of branches in Pakistan.”
“The bank will continue to invest in human resources, IT, branch and non-branch infrastructure and diversification of its business domains.”
