An Eye On The
Future!
Dedicated Team - Relentless
Effort - Accelerated Growth!
It is once again a matter of great pleasure for
me to brief you on the performance
of Escorts Investment Bank. There are good reasons to take considerable
satisfaction from the fact that the pattern of growth, which had
been initiated
with the induction of the New Executive Management Team in November
2001,
has been sustained and further strengthened during the period under
review.
The key strategic and operational measures, as laid down in my last
Annual
Review, (namely, Proactive Marketing; Optimizing Business Mix for
enhanced Profitability, Recognizing Treasury as a major Driver for
Value Addition; Securing Fresh Credit Lines; Reengineering Work
Processes for Time Efficiency; Adherence
to Good Corporate Governance; Deployment of Quality Human Resource)
have
all been vigorously pursued and implemented. The sustained success
of the
"New Strategy" is well reflected in the Financial Highlights
as appended below.
Financial
Highlights
Sr.#
|
Description |
*July ~ Dec
2002 |
July ~ Dec
2001 |
Variance |
Variance
% |
| 1 |
Profit Before Tax |
45 |
3 |
42 |
1,400 |
| 2 |
Profit After Tax |
34 |
2 |
32 |
1,600 |
| 3 |
Surplus on Revaluation of Securities |
112 |
8 |
104 |
1,300 |
| 4 |
Share Holder's Equity,
Subordinated Debt & Revaluation Surplus |
443 |
294 |
149 |
51 |
| 5 |
Certificates of Investments (Deposits) |
748 |
281 |
467 |
166 |
| 6 |
Morhaba Financing |
319 |
109 |
210 |
193 |
| 7 |
Investment in Government Securities |
440 |
295 |
145 |
49 |
| 8 |
Investment in Shares & COT |
186 |
24 |
162 |
675 |
| 9 |
Total Assets |
1,354 |
708 |
646 |
91 |
| 10 |
Earnings Per
Share
(six months) ...............Rs. |
1.70 |
0.11 |
1.59 |
1,445 |
* Half-Yearly Figures as at December 31, 2002
Reviewed by Auditors
Effort Rewarded - Progress Recognized
- Credit Rating Upgraded !
The significance of the above-referred success
has also been endorsed by JCR-VIS Rating Company by way of an upgrade
of the Bank's Rating to BBB+ / A 2. (Triple B plus / A two).
Future Outlook
Moving forward, the outlook for Escorts Investment
Bank remains very positive.
There has been satisfactory progress on the issue of Enhancement
of our Capital Base through a well-planned series of Mergers and
Acquisitions. The Bank has
also completed the process of acquisition of a Corporate Seat at
the Lahore Stock Exchange and SECP has granted the License to act
as Brokers. All operational preparations to start Brokerage Business
are now in place and this business will
be commenced very shortly.
We have resolved to quickly dismiss any temptation to pause for
breath at this significant milestone ; We recognize the challenges
confronting the Financial
Sector in the wake of a falling interest rates scenario and the
resultant diminishing spreads. However we remain determined to diligently
and relentlessly pursue our stated objective of "Value addition
for our Shareholders through enhanced
business activity".
I take this opportunity to thank the State Bank of Pakistan and
the Securities
and Exchange Commission of Pakistan for providing the necessary
enabling environment. I would also like to place on record my appreciation
for the hard
work and dedication put in by all the members of the Management
and Staff
of the Bank.
Sincerely,
Rashid Mansur
President & CEO
February 24, 2003
Lahore
|
