An Eye On The
Future!
Quarterly Report (Un-Audited) March 31, 2002
of our Bank
It gives me immense pleasure to provide you with an update on the
performance of
Escorts Bank Limited (EIBL),
As you are aware, in November 2001, as a major policy initiative,
the Board of
Directors of EIBL inducted a new Executive Management Team, comprising
of highly qualified professionals bearing appropriate experience,
for key management positions. The new Management drew up a comprehensive
Business Plan for the Bank based on
a redefinition of The Statement of Objectives of the Bank as:
"Value Addition for the Shareholders through Enhanced Business
Activity and a shift from Risk Avoidance to proactive Risk Identification
and improved Risk Management".
In line with the new Strategy:
- A proactive Resource Mobilization Campaign was launched at Lahore,
Karachi
and Islamabad.
- A number of new business activities were initiated to diversify
the Product and Earning Mix and to increase the Profitability
of the Bank.
- Treasury Operations were shifted and centralized at Karachi,
and enhanced to include new and innovative products.
- Fresh Credit Lines were secured from a number of Financial Institutions.
- Work Processes were reengineered and positive interventions
wherever necessary were made.
- Internal Controls were strengthened to enforce Good Corporate
Governance and
to ensure adherence to the highest Professional and Ethical Standards.
The success of the New Business Strategy is abundantly evident
from the following Highlights of the Published (Unaudited) Financial
Results of the Quarter ended
March 31, 2002.
Financial
Highlights
| UNAUDITED FIGURES |
Rupees in Million |
Sr.#
|
Description |
March 31,
2002 |
March 31,
2001 |
Variance
% |
| 1 |
Profit Before Tax |
17 |
3 |
467 |
| 2 |
Surplus on Revaluation of Securities |
21 |
8 |
163 |
| 3 |
Certificates of Investments |
389 |
281 |
38 |
| 4 |
Morhaba Financing |
214 |
115 |
86 |
| 5 |
Government Securities |
55 |
53 |
4 |
| 6 |
Investment in Shares & COT |
92 |
24 |
283 |
| 7 |
Off Balance Sheet items (L/G & REPO) |
529 |
386 |
37 |
| 8 |
Total Assets |
803 |
708 |
13 |
The position has further improved as at May 31, 2002.
Credit Rating
The JCR-VIS Credit Rating Agency has reaffirmed the Ratings of EIBL
at BBB/A-2. The outlook on these ratings has been declared as "Positive".
The basis of these ratings has been stated as strong liquidity position
of the bank, along with significant Sponsor Support. They have also
taken into account the viability of the new Business Plan.
Market Price of EIBL Share
The Stock Markets have responded very positively to the repositioning
of EIBL as reported in the Third Quarter Results and the price of
EIBL shares has improved to Rs.8.- per share. It is widely perceived
that once the Stock Markets come out of the bearish spell triggered
by the war fears, the EIBL share would achieve its rightful level
at "above par".
Minimum Capital Requirement
By the Grace of Almighty Allah, EIBL has met the Minimum Equity
Requirement of
Rs. 300 million set by the State Bank of Pakistan by way of a fresh
injection of
Sponsor Funds of Rs.84 million as Subordinate Debt.. The Bank plans
to further
enhance its Equity Base by a series of planned Acquisitions and
Amalgamations.
Future Outlook
The Management is confident that the performance of the bank will
show sustained growth while maintaining the excellent quality of
our Assets.
As always, I look forward to your continued patronage and support.
With warm regards,
Sincerely,
Rashid Mansur
President & CEO
|
