An Eye On The Future!

Dedicated Team - Relentless Effort - Accelerated Growth!

I am once again extremely delighted to update you on the performance of Escorts Investment Bank - mainly because " Q 3 ~ 2002 ~ 03" has been another good quarter for the bank. During my previous reviews, I have been emphasizing the underlying principle of our Strategy that:

"In today's dynamic financial sector, sustainable success is most likely to be achieved
by those institutions that take the broadest view of their responsibilities."

In the last three quarters, our adherence to this principle has continued to serve
us well. The combination of customer focus, innovative products and quality service, supported by a committed team, and operating within an accountable framework
of social, ethical and corporate responsibility, is a powerful formula. It has also
been a successful one, and I believe it will continue to serve us well in the future.

I am pleased to lay before you the following Financial Highlights, of the period
under review, in support of the foregoing:

Financial Highlights

Proactive & Focused Interventions Yield Results!

During the Quarter under review we revisited our Business Plan and the New Strategy, with a view to check that the key strategic and operational measures,
as laid down in my last 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) were on track. Adjustments wherever required were made to match the market dynamics.

One of the areas where a proactive and focused intervention yielded encouraging results was the bank's Weighted Average Cost of Funding (WACOF). Better
Resource Mobilization and improved Treasury Management resulted in a
significant fall in WACOF. Overall Investment and Advances to Deposits Ratio has also improved significantly resulting in a higher Net Interest Margin. Most of the additional value thus created was passed on to prime corporate clients in the
shape of lower rates on financing. Part of this value also translated into higher Profitability for the bank, that shall ultimately go to the shareholders. This process
of adjustment shall continue through the rest of this financial year. By this time we would have fully realigned our Asset/Liability Portfolios to the realities of the "Reduced Interest Rates Scenario".

Care was also taken to fine-tune some imbalances, though slight, arising out of
the robust growth of the Balance Sheet during the last nine months.

The Quarter under review has also seen focused effort towards strengthening
the bank's Internal Audit Function, under a newly inducted Internal Audit Chief.
The revised/updated Audit Charter has been approved by the Board and a very comprehensive Internal Audit Manual has been drafted by a reputed firm of Chartered Accountants.

Future Outlook - Sky is the Limit!

The past nine months have been challenging as well as exciting for our business
and for our team. We have had to operate in much tougher competition and
make some difficult decisions. But it has demonstrated the ability of our team to change and adapt rapidly. We see the transformation of the Financial Sector in Pakistan (as a result of the recent State Bank of Pakistan and Securities and Exchange Commission of Pakistan reforms) as an opportunity rather than a
threat, for progressive institutions like ours. Moving forward, the outlook for
Escorts Investment Bank remains very positive.

The Banks Brokerage Business has now become fully operative through our Corporate Membership at the Lahore Stock Exchange and we are determined
to build this business into a major driver of profitability.

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

April 28, 2003
Lahore