May 08 -21, 2000
During the year 1999 Platinum
Commercial Bank Limited has opened four more branches. These are, two in Lahore at
Circular Road and LCCHS, one in Hyderabad, Sindh, and one in Karachi on Shahrah-e-Faisal.
The branches' network as at the end of 1999 thus consisted of seventeen branches. During
the year 2000 the Bank has already opened another branch in Karachi in Clifton, increasing
the number of branches in Karachi to five. The Bank plans to identify and establish its
presence in other cities of Pakistan to further improve its market penetration.
The year 1999 was another
difficult year for the Bank. Despite an overall economic slow down, the Bank maintained
steady growth. Deposits increased from Rs 4,555 million at the end of previous year to Rs
4,821 million by the end of the year 1999. Advances which stood at Rs 3,826 million
increased to Rs 4,321 million during this period. The Bank's advances are secured and
considered satisfactorily in general and are yielding reasonable income. These risk assets
consist of short-term and trade related advances and are widely spread over various
sectors of the economy.
The Bank handled import and export business to the tune of Rs 12,310
million in 1999 as against 7,903 million during 1998. The pretax profit of the bank for
1998 was Rs 78.926 million which increased to Rs 160.523 million in 1999. It may be
pointed out that interbank money market during the whole of 1999 also remained highly
liquid. The Bank's liquidity used in the market produced low return as it mostly remained
a lender in the interbank money market.
For the year 1999 the Bank's operating expenses increased to Rs 140
million as compared to that of Rs 122 million for the previous year. The most important
fact is that the Bank posted Profit after tax (PAT) of Rs 80 million for the year 1999 as
compared Rs 37 million posted for the previous. Added to this unappropriated profit, Rs
111 million, carried forward increased the profit available for appropriation to Rs 191
million. Out of this Rs 61 million was transferred to revenue reserve, Rs 16 million to
statutory reserve and Rs 50 million to reserve for issuance of bonus shares.
Keeping in view the amount of profit available after taxation and the
necessity of strengthening the capital base of the Bank, the Board of Directors also
announced 10 per cent Bonus Shares, at the rate of one share for every ten shares held by
Under the depressed economic situation the management considered it
advisable to adequately provide for non-performing assets in the light of State Bank of
Pakistan's 'Prudential Regulations'. However, this has resulted in release of substantial
amount from provision held as at end 1998. Therefore, it considered prudent to create
'Revenue Reserve' of Rs. 61.00 million (which is in excess of the amount released from
provision) to strengthen the capital base of the Bank and to take care of any contingency,
if it ever arises.
S. M. Waseem, a senior executive from ANZ Grindlays Bank and having
extensive domestic and international banking exposure, has been appointed new President
and Chief Executive Officer (CEO) with effect from December 22, 1999. His appointment was
cleared by State Bank of Pakistan. Amanullah Khan, the previous President and CEO of the
Bank resigned, at his own accord, on December 2, 1999 owing to pressing family
circumstances and failing health.