An Eye On The
Future!
Our Strategy
Moves On…
I am delighted to update you on the performance
of Escorts Investment Bank during the Half-Year July ~ Dec 2004.
It has now become our Bank's tradition,
and my cherished privilege, to open, Quarter- after-Quarter, and
Year-after-Year, my Reviews with good news, follow through with
more good news and then conclude with a very Positive Future Outlook.
This Review is no exception.
Breaking News!
Based on the sustained performance of our
Bank, JCR-VIS Credit Rating Agency has for the third year in a row,
upgraded the Bank's Credit Rating. The Medium to Long Term Rating
has been upgraded from A- (Single A minus) to A (Single A) with
Stable Outlook while the Short Term Rating has been maintained at
A 2 (Single A two).
The upgraded Rating takes into account:
|
Strong Sponsor Support |
|
Continued
Commitment to Operational Diversification |
|
Expansion
in Portfolio of Business Activities |
|
Increase
in Resource Base of the Bank |
 |
Good
Asset Quality |
One of the merits of our Business Plan Escorts Beyond 2001 is that right from the beginning; it has been well thought, and
well documented. The Vision and the Mission have been clearly defined,
the Road Map is laid-out and the bench-marking, to measure Progress
vs. Objectives, is unambiguous.
In Quantitative Terms, the progress made
by the Bank is well reflected in the following Financial Highlights:
Financial Highlights (As at December 31,
2004)
| |
...........Rupees
in Million |
Sr.#
|
Description |
July
~ Dec.
2004 |
July
~ Dec.
2003 |
Growth
% |
| 1 |
Profit After Tax |
42 |
42 |
- |
| 2 |
Shareholder's Equity |
412 |
283 |
46 |
| 3 |
Certificates of Investment / Deposit |
1,212 |
876 |
38 |
| 4 |
Morabaha Financing |
440 |
390 |
12 |
| 5 |
Investment (including placements) |
1,905 |
1,662 |
15 |
| 6 |
Total Assets |
3,054 |
2,327 |
31 |
In Qualitative Terms, considerable progress
has also been achieved towards:
|
Further Strengthening
of the Internal Audit Function |
|
Expansion
of Branch Network (Presently six and one more branch at
Faisalabad is ready to become operational soon) |
|
Deployment
of state of the art, tailor-made Software Systems for our
Brokerage and Investment Banking Operations. (New Software
System for our Money Market Operations has already been
deployed) |
|
Continued
Commitment to Regulatory Compliance |
Future Outlook
In the coming months our
focus is going to be on the establishment and consolidation of
our new areas of operation. As a result of the planned Diversification
of Revenue Streams the Fee-Based-Income is expected to show significant
increase. Sizeable expansion of Equity and Total Assets is planned
through the just announced Right Issue of 40 %. This should also
allow the Bank to enter into new activities like Leasing, after
completing the necessary formalities and obtaining the required
approvals.
Based on the foregoing I can confidently
conclude that going forward the outlook for our bank remains
very positive.
Each time I share my confidence, regarding the good prospects
of our business, with you, I do so with the utmost of humility,
as once again I remind myself that I am just one member, of
the Escorts Team. Put together the relentless efforts of each
one of us, make our Business a Winning Proposition. To each
and every member of this remarkable team I owe my sincere thanks
and appreciation.
During the last one year, two of my very
dear friends and colleagues left us to join highly coveted positions
at other institutions. While it was but reluctantly that we
had to let Shauzab Ali and Saqib Ahmed Khan go, albeit, with
our best wishes, I take this opportunity to place on record
my appreciation for their contribution towards setting up the
foundations of new activities, in their respective areas of
responsibility. The foregoing review also shows that the Team
managed to build upon these foundations and the process of Value
Addition continued to gain momentum.
Special thanks are also due to the Board
of Directors of our Bank for their Guidance and Support, and
to the State Bank of Pakistan and the Securities and Exchange
Commission of Pakistan, for providing an Enabling Environment.
With warm regard,
Sincerely,
Rashid Mansur
President & CEO
February 21, 2004
Lahore
|
