CresBank (formerly MashreqBank Pakistan Limited) is
one of the newest licensed banks to join the fraternity of commercial
banks in Pakistan. The Bank's vision is to be a progressive, vibrant and
resourceful bank aiming to be a household name by winning over customers
through quality services.
It came into existence on July 9, 2003, then under
the name of MashreqBank Pakistan Limited, which name was changed to
Crescent Commercial Bank Limited on March 31, 2004.
CresBank is the outcome of the amalgamation of
Pakistan branches of Mashreqbank psc, of UAE and Crescent Investment
Bank Ltd. of Pakistan, with major shareholders comprising the Crescent
group undertakings, MashreqBank psc, and the general public. The bank
prides itself with a quality management team comprising of professionals
and experienced bankers with substantial exposure in their respective
fields of specialization. Together they provide providing the bank with
a fine blend of banking expertise in the various disciplines under one
The bank's activities, in the field of finance are
aided by the skills of the combining partners, Crescent Investment Bank
Limited in the field of asset management and capital markets where it
was a leader whilst Mashreqbank psc with its second to none status in
the Gulf in technology based commercial banking.
The stated Mission of the bank as per their latest
annual report is to be:
A bank distinguished for offering the widest range of
competitive and innovative products and services to its customers with
efficiency and personalized service.
A bank for:
Addressing their commercial and investment banking requirements
Fulfilling their personal and household requirements
Recognizing and supporting their potential for growth.
responsible corporate citizen, maintaining high level of governance,
ethical standards and prudence.
Leveraging technology to meet customers' changing needs.
A challenging and rewarding work environment resulting in gains for all
OPERATING ENVIRONMENT AND PERFORMANCE:
The outgoing financial year has been a good one for
Pakistan, with the economy achieving real GDP growth of 6.0 percent,
with rising revenue collections, higher forex reserves, improving
balance of payments and increasing exports, all contributing towards the
stabilization of the macro-economic conditions.
The banking industry too performed well, leveraging
on a substantial growth in deposits, aggressive marketing, improved
efficiency and realization of investment gains, partly the result of a
buoyant stock market and partly due to falling interest rates.
A substantial portion of banks' earnings therefore
resulted from non-interest income, including capital gains on equity
investments and fixed income securities. The State Bank of Pakistan's
easy monetary policy, especially during the first half of the year, kept
Rupee-lending rates under pressure. In the low-interest scenario, there
was intense pressure on banks to maintain profitability through
core-business and therefore we witnessed a greater thrust towards
consumer financing, COT financing and investment in long-term bonds. The
capital market maintained its upward journey and emerged as one of the
best performing equity markets in the world.
The State Bank of Pakistan issued three separate sets
of Prudential Regulations for i) Corporate/Commercial
Banking; ii) SMEs financing; and
iii) Consumer Financing. These guidelines/regulations, which
are based on the latest developments in the financial markets and
international 'best practices', are bound to provide the framework for
better risk management and improved corporate governance.
The economy witnessed slight inflationary pressures
and consequent tightening of the short term interest rates. The Pak
Rupee in the inter-bank market remained stable. There is ample liquidity
in the market which coupled with State Bank's continuing signals at
maintaining interest rate stability, will keep the rates in check.
By the end of first quarter of 2004, the bank earned
an after tax profit of Rs. 30.464 million. This came to an annualized
earning per share of Rs. 0.82. Net mark-up income contributed Rs.36.663
million to the gross earnings whereas non mark-up income contributed Rs.
38.802 million. Major contributions towards the non-mark up income were
through capital gains on sale of investments amounting to Rs. 16.548
Administrative expenses during the period amounted to
Rs. 41.501 million. As a percentage of average total assets, this works
out to 3.06 percent on an annualized basis. Total assets as at March 31,
2004, stood at Rs. 5,549.74 million.
INFORMATION TECHNOLOGY PLANS:
The bank has also been working to build its
technology infrastructure to embank on its plans for business expansion.
The bank plans to market superior banking services so as to reach the
largest number of clients by technology-based products both for it's
consumer and corporate clientele.
CRESBANK'S FORAY INTO CONSUMER BANKING:
Commercial banks in Pakistan sitting on huge
liquidity are gearing to provide a growing range of consumer financing.
Consumer financing through credit cards, auto loans, housing finance,
personal and consumer durables financing have shown a spectacular growth
of 639 percent in FY2003, compared with the position as at end of
FY2000. According to the State Bank of Pakistan report for FY2002-03,
auto loans accounted for 35 per cent of the total consumer credit
approved by the commercial banks in FY2003. Keeping in view a
substantial untapped potential CresBank also entered the arena of
consumer financing with "CarKey" on April 19, 2004, one of the
most competitive auto financing options available in the market.
CarKey is the first ever online (web based)
auto-financing scheme in Pakistan, which offers the customer the
facility to check his eligibility as well as apply online. Not only does
CarKey offer the convenience of applying while sitting in the comfort of
home, it also offers the shortest processing time, lowest total amount
paid at the end of the tenure, and finally maximum flexibility, with
equity participation ranging from 10% up to 60%, tenures from 1 to 5
years, financing of new & used vehicles, balance transfer facility
and competitive insurance rates from two different insurance companies.
The product has received a highly encouraging response and customer
acceptance in the initial two months of its launch.
Where CresBank has made applying for auto loans AS
EASY AS ABC through CarKey it is planning to bring SAB SAY BARI KHUSHI
of owning a home through its HomeKey, housing finance product, in July
At present CresBank has its Head Office in Karachi
and six branches located in Karachi, Lahore, Islamabad and Peshawar. It
plans to open at least 4 new branches in 2004 and another 10 over the
next 12 months.
The Chairman of the Board is Mr. Shamim Ahmad Khan, a
former Chairman of the Corporate Law Authority the predecessor to SECP
and the Chief Executive Officer of the bank is Mr. Azmat Ashraf, a
senior commercial banker having served at home and abroad in a service
career spanning over 24 years. The senior management comprises of
professionals and experienced bankers with substantial exposure in their
respective fields of specialization.
While laying the foundation of its business plan a
lot of care has been taken to build a strong team of qualified and
motivated professionals. The main focus of the bank's 3 years strategic
plan is on consumer finance, SME, investment banking & asset
Customer centered while planning, designing and introducing new
products, services and technology
OUTSTANDING QUALITY: Getting
it right the first time. Achieve excellence in the products and services
we offer through innovation and efficiency
MOTIVATED & WELL TRAINED STAFF: Our
competitive edge is our human resource. We will endeavor to train our
employees and to introduce a culture of reward and recognition.
PROFESSIONALISM & INTEGRITY:
Honesty, integrity, prudence and fairness is our organization's ethos
and shall be reflected in our dealings with customers and colleagues
creating a bond of trust and confidence.
individuals at all levels, delegate authority, encourage use of judgment
and create responsible leadership.
TEAM WORK: We
believe that the workplace should operate like a cohesive unit. With
common goals and team spirit we will uphold our values and achieve our
ENHANCED VALUE: Provide
a solid foundation to build