Afghanistan International Bank (AIB) remains the most stable and reliable bank in the country, despite the ongoing economic and humanitarian crisis as well as continued sanctions against the Taliban-led government.
According to a report published Thursday by Euromoney, AIB’s revenues for 2022 rose 66% year-on-year to 3.69 billion afghanis ($41.8 million). Non-interest income meanwhile more than doubled to 3.05 billion afghanis last year.
In line with this, Euromoney has bestowed the Awards for Excellence 2023 in Afghanistan on the AIB.
The report stated AIB’s capital adequacy ratio was solid, non-performing loan levels more than manageable and its balance sheet continued to grow. AIB also stayed profitable and recorded after-tax profits of 1 billion afghanis last year.
Euromoney stated that the bank, led by chief executive Joseph Carasso, gets many things right. It is the only Afghan bank with US dollar clearing through a recognized international bank, reflecting its
credentials in the country. “It has also long emphasized international
standards around everything from financial crime and compliance management to anti-money laundering and cybersecurity,” the report stated.
In addition, risk management was a key focus area with AIB consolidating all risk-management activities under one division to boost efficiency, the report read adding that all staff training was moved to a new digital learning system that ensures employees stay on top of all rules related to anti-money laundering and combating the financing of terrorism.
Despite this acknowledgement on the part of Euromoney, the liquidity and banking crisis in the country continues to cause serious constraints on economic activity.
Withdrawal limits on pre-August 2021 deposits are still in place for businesses and individuals, and much of the currency in circulation is not suitable for further use because of physical deterioration. As of April 7, weekly limits on withdrawals from private banks were increased, enabling individual depositors to withdraw up to 50,000 Afghanis ($578) per week with a monthly limit of 200,000 Afghanis ($2,313).
