The Governor expressing his views on the bank's
business said that SBP will provide full support to increase its equity.
The Governor advised that bank should develop a special loan product to
support talented female students for professional education. He also
advised that the bank should use training facilities of NIBAF, IBP, and
stakeholder banks to develop a team of best bankers. He suggested that
the bank should prepare documentaries about the Success Stories of
prominent women entrepreneur developed by the bank, to highlight the
contribution made by the bank in the economy.
Earlier the President of FWBL Zarine Aziz presented
the banks performance review of the year 2001 and the business plan for
the next three years. She informed that the year 2001 was the year of
"Turn-around" for the Bank, significant growth was recorded in
all financial activities, despite tight economic conditions and tough
market situation demonstrating our commercial viability and our
competence to make sustained growth. Deposits almost doubled from Rs.
3.4 billion to Rs. 6.2 billion (growth of 85.3%), Advances enhanced from
Rs. 604 million to Rs.833 million (growth of 37.9%) and Net profit
before tax increased from Rs. 26 million to Rs. 115 million (reflecting
growth of 342%) as against the projections of Rs. 100 million. The bank
accomplished highest results in all key components over the last 12
years. Shareholders equity of Rs 110 million as at 31st December 2000
increased to Rs.613 million by August 2002.
Accumulated loss of Rs. 138 million as of 31st
December 2000 was reduced to Rs. 58 million as on 31st December 2001 and
completely wiped off by June 2002. The Bank was able to earn pre-tax
profits of Rs. 81.3 million up to 31st August 2002 against target of Rs.
One of the bank's major concern of FWBL was pending
tax assessments and major disallowances of Rs.288 Million. This issue
has finally been settled by the tax authorities in bank's favour and tax
bonds amounting to Rs. 219 million with an average return of 10% were
issued on 19th June 2002.
The BOD members who attended the meeting, Mr. Ali
Raza President NBP, Mr. Aftab Manzoor President MCB, Mr. Zakir Mahmood
President HBL, Mr. Sheikh Mukhtar Vice Chairman MCB, Ms. Suhaila Asif
Director General Ministry of Women Development and Mr. Sharyar Ahmad EVP
UBL appreciated the management's performance. They approved the bank's
strategic directions for economic empowerment of women and the business
plan, for the next three years.
ATTOCK CEMENT GETS ISO CERTIFICATION
Attock Cement Pakistan Limited (ACPL) the
manufacturer of famous Falcon brand cement were awarded the
ISO-9001:2000 Certificate by Lloyds Register Quality Assurance (LRQA) at
a brief ceremony held at Pearl Continental Hotel, Karachi on September
17, 2002. The coveted Certificate was received by Mr. Babar Bashir Nawaz,
Chief Executive of ACPL from Mr. Zahid Rahman, LRQA's Country Manager
ACPL is the first company to achieve Certification on
the latest version of ISO-9000 Standards presently in vogue.
FIRST GRINDLAYS MODARABA ANNOUNCES ANNUAL RESULTS
First Grindlays Modaraba announced its results for
the twelve months ended 30 June 2002 on September 13, 2002. Commenting
on the results, Azhar Hamid, Senior Group Representative, Standard
Chartered and Chairman Grindlays Services of Pakistan (the management
company of First Grindlays Modaraba) said, "We're very pleased with
the momentum and quality of our growth. Our results track well with our
strong value proposition to our clients, our strategic focus and the
outstanding contribution of our motivated and talented people. They
reflect strong organic business growth and increasing importance to
Standard Chartered's performance."
Results highlights include:
•Operating income up at Rs.1,082 million as
compared with Rs.1,000 million last year. •Net profit up at Rs.172
million as compared with Rs.149 million last year. •Operating costs
down by 4.5 per cent over last year to Rs.42 million. •Non-performing
portfolio reduced from Rs.92.5 million to Rs.73.8 million. •Earning
per share at Rs.4.61 as compared to Rs.3.98 last year. •Return on
equity at 24.1% as compared to 22.1%.
The results support strong all-round performance with
record new business of Rs.1.2 billion, operating income of Rs.1.08
billion and net profit of Rs.172 million. Additionally, FGM announced a
21% increase in its cash dividend's bringing this figure up to 40% as
compared to last year's 33%. This is the highest cash dividend paid by
FGM since its inception in 1987.
The above performance, together with an efficient
asset and liability management process, has resulted in a stronger
balance sheet as at June 30, 2002. Net portfolio of assets as at June
30, 2002 was Rs.2.3 billion compared to Rs.2.1 billion last year.
Shareholders' equity stood at Rs.695 million. Medium-term funds raised,
through a pioneering Islamic instrument Certificates of Musharika (COMs),
from general public aggregated Rs.363 million as at June 30, 2002. The
growth and success of COMs continues to add strength to the business.
During the year, FGM maintained the highest 'Modaraba
Financial Strength' rating of A2 by Pakistan Credit Rating Agency (an
affiliate of Fitch Rating Ltd.) which represents 'a Modaraba in
outstanding financial condition with a consistent record of above
PSO REVISES HSD PRICE
Pakistan State Oil (PSO), the largest oil marketing
company in the country, has revised the HSD price by 1.4 per cent
instead of the 3.7 per cent increase in the ex-refinery price as
notified by the Oil Companies Advisory Committee (OCAC).
The new price of HSD with effect from September 20,
2002, at 29 designated locations/ depots under the deregulated regime
will be maximum Rs.19.76 per litre.
Although, there was a substantial increase in
international oil prices and ex-refinery price, PSO has made only a
marginal increase and passed on the balance to the benefit of consumers.
The company has achieved this saving for consumers through efficient
import management and reduction in operating costs in line with its
AKFED AND NJI SIGN AGREEMENT TO ACQUIRE CGU BUSINESS
The Aga Khan Fund for Economic Development (AKFED)
and its affiliate, New Jubilee Insurance Company Limited (NJI) will
acquire the shareholding of CGU International Insurance plc (CGU),
principal shareholder in Commercial Union Life Assurance Company
NJI will also acquire CGU's general business, trading
in Pakistan under the name of Commercial Union. The transactions will be
subject to regulatory approval.
SHIPPERS HONOR FEDEX FOR SUPERIOR PERFORMANCE
Four operating companies of FedEx Corporation (NYSE:FDX)
are recognized for their dedication to exceptional service, reliability
and on time performance in the 2002 Quest for Quality survey. FedEx
Express, FedEx Ground, FedEx Freight and FedEx Supply Chain Services
were chosen as among the best providers in their respective categories
by readers of Logistics Management & Distribution Report.
"FedEx Corporation companies are committed to
providing the best portfolio of reliable, time-sensitive, innovative and
efficient services to businesses of all sizes, "said T. Michael
Glenn, executive vice president of market development and corporate
communications for FedEx Corp. "The Quest for Quality honors are
further validation of true service benefits customers receive from
PACRA ASSIGNS AA RATING TO MCB
The Pakistan Credit Rating Agency (PACRA) has
assigned a long-term rating of "AA" (double A) and short-term
rating of "A1+" (A one plus) to Muslim Commercial Bank
Limited. These ratings denote a very low expectation of credit risk
emanating from the strong capacity for timely payment of financial
commitments. The ratings are applicable to the senior unsecured
creditors (depositors) of the bank.
The assigned ratings reflect the Bank's continuing
policy of maintaining a low risk profile with steady growth through
deposit mobilization and improved risk profile of advances by way of
enhanced provisioning. Going forward, the bank is well positioned both
by virtue of its size and strong technology platform to sustain its
outstanding performance despite a difficult operating environment and
increasing competition within the banking sector.
The Board of Directors of ABAMCO Limited ("ABAMCO"),
an asset management company, managing Unit Trust of Pakistan, UTP-Income
Fund and BSJS Balanced Fund Limited met on September 17, 2002 to review
the performance of the funds under management and to approve the audited
accounts of the Company for the year ended June 30, 2002.
The Board was apprised that the process of dispatch
of dividend warrants to unit holders of Unit Trust of Pakistan has
commenced after receipt of clarification from the Central Board of
Revenue that the portion of dividend paid out of capital gain will not
be subject to income tax. The Board of Directors appreciated the efforts
of ABAMCO's management in seeking such clarification. Out of the total
dividend payment of Rupees 750 per unit (15%), Rupees 134 per unit is
payment from capital gains, which will not be subject to income tax.
Mr. Jahangir Siddiqui, Chairman of ABAMCO resigned as
a Director and Chairman w.e.f September 17, 2002. Mr. Ali Jehangir
Siddiqui who has joined ABAMCO as an Executive Director was appointed as
Director in place of Mr. Jahangir Siddiqui. The Board appreciated the
services of Mr. Jahangir Siddiqui and welcomed Mr. Ali Jehangir Siddiqui,
both as a Director and member of ABAMCO's management team. Mr. M. Habib
ur Rehman, who has been the Chief Executive of ABAMCO since its
inception was elected as the Chairman of the Company in place of Mr.