Tariq Jamali Appointed as Acting President/CEO National Bank of Pakistan
The Ministry of Finance, Government of Pakistan has appointed Mr. Tariq Jamali, Senior Executive Vice President as the Acting President/Chief Executive Officer of National Bank of Pakistan.
He is a thorough professional banker with 30 years of successful banking career. He joined NBP in 1987 and has held various Senior Management positions at Regional and Head Office levels.
During his career at NBP he has served as Group Chief of Logistics Support Group, Commercial and Retail Banking Group and Compliance Group. Presently, he was serving as Group Chief, Asset & Recovery Group. He is also Director of National Assets Insurance Ltd, Atlas Power Ltd, Fatima Fertilizer Company Ltd, Galadari Cement Gulf Ltd, Karachi Council on Foreign Relations and National Construction Ltd. He holds an MBA degree from University of Dallas and a Bachelors in Civil Engineering from USA.
Throughout his career he has successfully performed in every challenging sphere of banking activities. He has unique ability to manage resources at finest level by keeping an eye on best industry practices/regulations for effective policy making and formulating strategies for superlative services.
He is armed with diversified work experience, knowledge and knack of working at different levels of management.
After-tax Profit increase by 4pc
Meeting of the Board of Directors (BoD) of National Bank of Pakistan (Bank) was held on August 30, 2018 at Bank’s Head Office in Karachi in which the BoD approved the financial statements of the Bank for half year ended June 30, 2018.
The Bank recorded a pre-tax profit of Rs. 17.16 billion being 26% higher than the Rs. 13.61 billion earned during the corresponding six months period of 2017. The after-tax profit for the period amounted to Rs. 12.49 billion i.e. 46% higher than the Rs. 8.55 billion for the corresponding period of 2017. This translates into earnings per share of Rs 5.87 as against Rs. 4.02 for the corresponding period last year.
Bank’s net interest / mark-up income increased by 15.7% to Rs. 31.14 billion against Rs. 26.05 billion for the corresponding period of 2017. This was achieved through maintaining an efficient asset-mix of high-yield loans and investments. The Bank has recently introduced changes in its operating structure for better service quality in order to enhance customer loyalty. Income from dividend and capital gains however recorded a drop due to the lacklustre performance of Stock Market. Overall non mark-up / interest income for the period amounted to Rs. 15.25 billion which is marginally lower by 2.7% as compared to Rs. 15.68 billion for the corresponding period of last year.
With a 12.1% growth by reference to December 31, 2017, the balance sheet size of the Bank has increased to Rs. 2.66 trillion. As of June 2018, Bank’s deposits amounted to Rs. 1910.67 billion being 10.6% higher as compared to that of December 31, 2017. The net advances also increased to Rs. 790.4 billion showing an increase of 6.8% as compared to December, 2017.
NBP, Mobi-Direct sign two MOUS
The National Bank of Pakistan (NBP) signs two Memorandum of Understanding with Mobi Direct enabling NBP to become consortium member and settlement bank and for using Mobi Direct’s digital Products.
Mr. Saeed Ahmad, President NBP said that he is very optimistic about this initiative and said that this arrangement will go a long way in fulfilling aspirations and expectations of NBP customers and account holders and will help National Bank of Pakistan in rolling out various digital products and services in future through this arrangement. He emphasized upon achieving complete E- governance through this initiative which is the key to success for all types of businesses. The NBP is assisting all the provincial governments in digitalizing their various payments, fee and taxes collection systems. He mentioned that the NBP has already inked MoUs and agreements with various provincial and federal departments for digitally colleting their fee and payments including Directorate General of Immigration & Passports, Bureau of Emigration and Overseas Employment, Public Service Commission KPK, Islamabad Traffic Police, Driving License Sindh and Dealer Vehicle Registration System (DVRS) and collection of e-Tax in Punjab.
Saeed Ahmad further stated that after signing these arrangements, National Bank of Pakistan will be able to use Mobi Direct payment processing and transactions switching infrastructure, online payment gateway and shared agent network for promoting nationwide branchless banking and digital payments services to provide real growth to unbanked segment of population. National Bank of Pakistan will act as a “Settlement bank” for Mobi Direct’s digital payment system and for all of Mobi Direct’s consortium members and stake holders.
NBP is playing a major role in enhancing the financial inclusion by aligning with digital banking revolutions in Pakistan. NBP is in process of developing systems for digitization of all G2P & P2G payments. Saeed Ahmad highlighted that NBP is actively working to digitalize its banking services built on a collaborative model with Telcos and other stakeholders. This will help in promoting Alternate Delivery Channels and enabling the right environment for inclusive growth and achieve the goal of financial inclusion, Saeed said. He emphasized that it will also help in formalizing the undocumented economy and help in achieving better economic growth.
Speaking at the occasion, Mr. Nawid Ahsan, Chairman Mobi Direct expressed his gratitude to NBP’s team, in taking lead in becoming the settlement bank for Mobi-Direct payment processing & digital payment switch with a forward-looking approach in this collaboration. Mobi Direct being the leading PSO/PSP, Mr. Ahsan also showed his firm commitment that Banking Industry will take Pakistan to a new digital era, by partnering with PSO/PSPs. He urged to work in close collaboration for development of rural and urban economy of Pakistan and making banking services affordable while being accessible for every citizen of Pakistan.
The agreement was signed by Muhammad Farooq EVP/ Group Head Payment Services & Digital Banking Group, National Bank of Pakistan and Mr. S. M Arif Director/ Chief Business Architect Mobi Direct in presence of dignitaries from both sides.
Karachi contributes by 20 pc to Country’s GDP but stood at 137 out of 140 in liveability index: Mian Zahid Hussain
President Pakistan Businessmen and Intellectuals Forum (PBIF), President AKIA, Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain last week said that Karachi is economic and industrial hub of the Country where majority of industries, head offices of multinational institutions and banks are situated. 95 pc of Countryís exports and imports took place via ports located in Karachi.
The veteran business leader while talking to the business community said that according to World Bank, Karachi contributes 20 pc to Countryís GDP, which is annually increasing by 5.5 pc. This city is responsible for maximum tax collection in Country and contributes to 75 pc Custom Duty, 80 pc sales taxes and 53 pc of total FBRs collections. Karachi produces about 30 percent of value added in large scale manufacturing; Textiles, cement, steel, heavy machinery, chemicals, food, banking and insurance are the major industrial sectors contributing to Karachi’s GDP.
The former minister said that there are 8 industrial zones in the city with one export promotion zone in the city of over 21 million population while 25 thousand formal and more than 0.2 million informal trade and industrial institution are located, actively contributing to production and exports of the Country. Despite a major contributor to the National economy, Karachi stood at 137 out 140 in the global liveability index, worth considerable to all institutions, he added.
Mian Zahid Hussain said that $ 12 billion to be spent on city’s transport under CPEC; metro buses to be introduced in six cities including Karachi, establishment of Karachi to Lahore motorway, up-gradation of Karachi to Peshawar railway line to be further extended from China to Gwader by 2030.
Mian Zahid Hussain said that Karachi is facing severe problems despite major economic contributor and industrial hub of the Country. According to Asian Development Bank 90 pc drinking water is unsafe and industries are in acute shortage of water. World Bank reports disclosed that bad sanitation in the city is the major cause of deaths due to diarrhea and disease among children under five. Karachi is the only mega city in the World, with no mass public transport system. Increasing concrete structures and lack of plantation have increased the intensity of hot weather and hundreds have died due to heat stroke. Karachi is number one in pollution in Pakistan and air in Karachi is as polluted as twice in Beijing, according to World Bank.
Mian Zahid Hussain said that federal and provincial governments could not play significant role in development of infrastructure, sanitation, mass transit and curbing issues like pollution and street crimes. Karachi chamber of commerce and industry has totally failed in attaining the due position to the Quaid’s city, however it has succeeded in forming personal relations.
JS Bank Digital Banking Wins ’Best Digital Innovation Award’
The JS Bank Digital Banking Team marked another feather in its cap with the ’Best Digital Innovation Award’ presented at the Pakistan Digi Awards 2018 in Karachi. Held on August 18th 2018 at Marriot Hotel, the Pakistan Digi Awards once again paid tribute to the most innovative and imaginative initiatives in the Digital Industry of Pakistan.
This year, JS Bank was honored to be the financial institution selected for its trailblazing mobile application, ’Apni Cricket League’, a gamified user experience where banking was invisible, feasible yet entertaining. Based on Pakistan Super League – season 3, this Fantasy league celebrated our nation’s passion for Cricket and the frenzy to win prizes; while banking was right there, successfully engaging hundreds of thousands of people across Pakistan.
Indus Motor Company Declares Profit after Tax of Rs. 15.8 Billion for FY18
The Board of Directors of Indus Motor Company (IMC) Ltd. met on August 28, 2018 to review the company’s financial and operating performance for the year ended June 30, 2018.
The company posted net sales revenue of Rs. 140.2 billion, up by 25% as compared to Rs. 112.27 billion last year, while profit after tax grew by 21% to 15.8 billion from Rs. 13 billion posted last year and profit before tax grew by 20% from Rs. 19.1 billion last year to Rs. 23 billion in the year ended.
The overall increase in the revenue and net profits is attributed to higher sales volume on account of the launch of new models, change in sales mix and higher other income owed to increase in fund size. Demand momentum for automobiles remained solid throughout the period, due to increased spending power, despite rising fuel prices and accessibility to reasonably priced auto financing.
The company operated its manufacturing facilities beyond capacity working daily in overtime hours and off Saturdays to produce 62,886 units, up by 5% compared to 59,945 units last year.
Keeping in view the sustained growth in demand year on year, the Board of Directors approved a new investment of PKR 3.3 Billon to further enhance vehicle manufacturing productivity, which is expected to result in capacity increase to 76,000 units per annum by 2020-21. This plan will take the overall investment by the company to around PKR 7 Billion on improvement of production volumes.
Ali Asghar Jamali, CEO Indus Motor Company said, “We are committed to the Pakistani market and to our loyal customers who have shown great trust in our products year on year. We are delighted to announce a new investment of PKR 3.3 billion to further enhance annual manufacturing productivity, resulting in increased capacity to 76,000 units”
IBA welcome Orientation Fall 2018
The IBA welcomed its batches of undergraduate, graduate and postgraduate programs through Orientation Fall, 2018. The program commenced with a brief documentary, showcasing all aspects of the IBA, followed by recitation of the Holy Quran.
In his welcome address, Wing Commander (Retd.) Aamer Shabbir, General Manager-Administration, briefed the new students about the code of conduct, IBA community, academic calendar and various affiliations. He gave the audience a virtual tour of the IBA and provided a detailed description of the 3766-strong student body; commenting on the impressive increase in female participation, where the male: female ratio now stands at 1.5: 1. He encouraged the students and said, “A thousand-mile journey begins with a first step which you have now taken. You are now the author of the next chapter of your life. I wish you good luck with your first day here and your aspirations for success”. He also spoke about the IBA’s commitment in meeting the country’s environmental challenges. Plantation drives were conducted to plant 1400 trees, making the IBA one of the greenest campuses in the city.
An introduction to enrolment, attendance and grading rules was given by Mr. Abdul Wajid Khan, Controller of Examinations. Later on, the directors and chairpersons addressed the students and delivered comprehensive overviews of the academic programs and the IBA’s core values.
Dr. Rameez Khalid, Director Business Administration program, spoke about the importance of a business education and said, “The purpose of business education is to create educated and ethical individuals, who can help create solutions for business problems”.
Dr. Faiza Mushtaq, Chairperson Social Sciences & the Liberal Arts, shed light on the comprehensiveness of IBA’s Social Sciences degree. She went on to talk about the changes made to the program, which includes a new major, History, and the addition of German as the fourth foreign language option.
Mr. Hammad Sarfraz, CEJ Lecturer, provided an overview of the Master’s program in Journalism. He spoke about the courses offered in the program and said, “Our Master’s program offers a unique hands-on journalism experience across all platforms.”
Ms. Nida Aslam Khan, IBA Student Counselor, then enumerated the list of clubs, societies, their patrons and the activities organized by them, which include excursion trips and major events.
Dr. Farrukh Iqbal, Executive Director IBA, congratulated the students in his address and briefly talked about academic success and professional growth among the alumni. He spoke about the increasing competitiveness at IBA and said, “Here at the IBA, the degree of competition is stitched in all areas of student life. For you to make it through the program, I will stress on three things: autonomy, accepting responsibility and embracing differences. Each student is different in their own way but you are all here based on one criterion, and that is merit”.
Talking about diversity, Dr. Iqbal appreciated the interest and enrolment of students in the IBA’s newly-introduced programs of BS Economics, MS Journalism and MS Islamic Banking and Finance. Concluding the orientation, a Q/A session between the students and the Executive Director ensued.
Bank Alfalah posts impressive results for the half year, with Profit before tax at Rs. 10.008 Billion
The Board of Directors of Bank Alfalah in their meeting held in Abu Dhabi on 26 August 2018, approved the Bank’s un-audited condensed interim financial statements for the quarter and half year ended June 30, 2018.
The Bank’s Profit before Taxation for the six months period ended June 30, 2018 was recorded at Rs. 10.008 Billion, as against Rs. 8.470 Billion, for the corresponding period last year, improving by 18 percent. Profit after taxation for the period was reported at Rs. 6.039 Billion, improving by 24 percent against the corresponding period last year, which resulted in earning per share being reported at Rs. 3.75 for the period.
Net Interest Income (NII) for the period was reported at Rs. 15.356 Billion, improving by 2 percent year on year. Volumetric growth in advances and average current account volumes, and improvement in overall spreads has resulted in NII levels being maintained, despite a notable reduction of income from PIBs.
The Bank’s Non-Interest Income improved impressively by 8 percent to end at Rs. 5.765 Billion. Core Fee and Commission improved by 3 percent year on year, whereas foreign exchange income as well as dividend income also contributed to the overall growth, improving by 89 percent and 63 percent respectively.
Administrative Expenses were recorded at Rs. 11.676 Billion, ending 2 percent lower as compared to prior period, despite certain non-recurring expenses affecting both periods. The Bank focus remains on monitoring the key cost control initiatives. Total non-mark-up expenses reduced by 3 percent, mainly due to the reversal of provision booked in earlier years against funds blocked in the Bank’s Nostro Account in the US, with the case being successfully settled in favor of the Bank.
At June 30, 2018, the Bank’s coverage ratio stands at 91 percent, while the NPL ratio stands at 3.4 percent. Net reversals against advances improved from Rs. 267 million for the half year ended June 2017 to Rs. 496 million for the current period, mainly on account of improved recoveries, which were reported at Rs. 1,355 million for June 2018, as against Rs. 1,136 million for the corresponding half year period.
With a strong focus on improving the deposit mix, the Bank’s CA has increased by Rs. 39 Billion to Rs. 307 Billion, representing an increase of 15 percent.
The Bank’s first ever additional Tier-1 Capital was issued in the current period, in the form of listed, perpetual, unsecured, subordinated, non-cumulative and contingent convertible debt instruments. With this issue, the Bank’s additional Tier-1 capital has improved, and the proceeds from the issue are intended to be utilized towards further enhancement of the bank’s business operations.
The Board of Directors declared an interim cash dividend of 10 percent as well as bonus shares in proportion of 10 shares for every 100 shares held.
Bank Alfalah and CLSA announce strategic partnership in Pakistan
Bank Alfalah Limited (“Bank Alfalah”), the majority shareholder of Alfalah Securities (Private) Limited (“Alfalah Securities”), and CLSA JV Holdings Limited (“CLSA”), a subsidiary of CITIC Securities, are pleased to announce a strategic partnership in Pakistan that will leverage Alfalah Securities’ market leading position and CLSA’s award-winning research and outstanding client base of global institutional investors.
The partnership will see CLSA acquire 24.9% of the capital of Alfalah Securities alongside individual investors Mr. M. Aliuddin Ansari and Mr. Atif M. Khan who will acquire a combined 12.6% stake. The transaction is expected to complete by November 2018 following which Alfalah Securities will be renamed Alfalah CLSA Securities (Pvt.) Limited (“Alfalah CLSA”). Alfalah CLSA will offer equity broking, research and investment banking services to clients in Pakistan and CLSA will distribute Alfalah CLSA research to CLSA’s global clients.
President & CEO of Bank Alfalah, Mr. Nauman Ansari said: “This is a very exciting time for Bank Alfalah and Alfalah CLSA. We are committed to growing Alfalah CLSA into the leading securities firm for equities broking, research and investment banking in Pakistan. Through the award winning global brands of CLSA and CITIC Securities, Bank Alfalah’s wide local presence and the knowledge and expertise of Alfalah Securities’ management, Alfalah CLSA will offer unrivalled expertise, services and credentials in Pakistan.”
CEO of CLSA Mr. Jonathan Slone said: “Pakistan is a key market for CLSA and one where we have had a long-standing interest. Our strategy is to establish an on-the-ground presence in all major Asian markets, with a particular focus on markets in the Belt and Road Initiative. I am confident that this investment will provide our clients enhanced access to a dynamic frontier market with exciting investment opportunities, while expanding CLSA’s Asia research coverage and distribution footprint.”
Mr. Slone further added. “CLSA has been one of the largest foreign brokers in Pakistan for many years in terms of portfolio flows in and out of the market. This investment cements a longstanding relationship with Alfalah Securities, one of our counterparty brokers in Pakistan, Bank Alfalah and Mr. Aliuddin Ansari himself.”
Mr. Aliuddin Ansari said: “I am really pleased to partner with Bank Alfalah & CLSA in Alfalah CLSA Securities which will provide a gateway to Pakistan for international investors and corporates especially from China. CLSA and Alfalah recognize the potential opportunity in our market and are partnering strategically to build a strong institutionalized platform.”
CEO of Alfalah Securities Mr. Atif Khan said. “CLSA has an exceptional track record in Asian investment banking and equity markets. This partnership combines CLSA’s global expertise and distribution with Alfalah Securities’ market leading domestic presence to create a best-in-class offering for all of our clients to meet their ever-expanding investment needs.”