SAUDI PAK MAINTAINS GROWTH MOMENTOUS
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Sep 27 - Oct 03, 2004
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The profile of Saudi Pak Industrial Investment Company (Pvt) Limited is continuously rising. With the positive trend in economic development at national level coupled with the increased GDP, Saudi Pak is all set to achieve consistent and profitable growth.

Saudi Pak Industrial & Agricultural Investment Company is a joint venture of Kingdom of Saudi Arabia and Islamic Republic of Pakistan. The initial paid-up capital of the company was Rs.1,000 million, which has since been increased to Rs. 2,000 million through capitalization of reserves and is held as under:

Kingdom of Saudi Arabia through Public Investment Fund 50%
Government of Islamic Republic of Pakistan through SBP 50%

The Chairman of the Board is Dr. Abdullah T. Al-Thenayan, who is also Director General Arab Company for Livestock Development, Kingdom of Saudi Arabia. The Government of Pakistan is represented by Dr. Waqar Masood Secretary Economic Affair Division as Deputy Chairman. Mr. Muhammad Rashid Zahir is managing the affairs of the company as Chief Executive/General Manager.

The core objective of the company is to enrich economic co-operation between the brotherly people of Saudi Arabia and Pakistan. The Company is engaged in fostering economic growth and development in Pakistan through investments in industrial and agro-based projects and participation in investment related activities.

Saudi Pak offers a comprehensive range of financial facilities to medium and large industrial projects. Over the years, the company has been diversifying its product mix to cater to the changing day-to-day needs of the customers. The existing product mix comprises of:

Profit financing
Short-term working Capital Loans
Equity financing/Stock Market Operations
Term Financing (TFCs) Certificates
Lease Financing
Under writing'
Guarantees
Money Market/Treasury Operations

During the last two years, the Pakistan's economy has performing well and so is the banking industry. Saudi Pak has contributed is due share by performing well in all spheres of its activities.

Growth Record: The size of the company's operations has increased many fold over the period. The company has successfully maintained the momentum of growth in terms of debt portfolio and equity investment. The portfolio is sectorally and regionally balanced.

The total assets amounted to Rs. 13.622 billion as on December 31, 2003 and Rs. 14.451 billion as on June 30, 2004. Since inception, the company has provided total financing of Rs. 21.8 billion to 554 corporate clients in various industrial sectors. The cumulative disbursements amounts to Rs. 16,994 billion as on December 31, 2003. The company approved financing of Rs. 6,917.4 million during the year ended December 31, 2003. This included strategic investment of Rs. 354.7 million. Table-I depicts the approvals, disbursements and recoveries made by the company during last five years.

Table-I
(Rs. in million)

For the year ended Dec.31

2003

2002

2001

2000

1999

Approvals

6,917.4

2,218.0

2,815.0

1,390.0

1,363.0

Disbursement of funds

4,653.2

2.190.4

2,190.1

1,477.5

1,108.5

CUMULATIVE

Cumulative approvals

21,815.2

15.252.5

13,033.0

10,718.5

9,328.5

Cumulative disbursements

16,994.2

12,695.8

10,505.3

8,815.2

7,337.7

RECOVERIES:

Total amount

2,471.9

1.597.0

1,292.6

1,214.8

992.6

Current Dues Collection

94.5

93.8

93.5

93.3

93.1

Ratio (%)

 

 

The company has been distributing dividends to its shareholders regularly. Total cash dividends paid to date amount Rs.1,992.613 million, in addition to stock dividend of Rs.1,000 million. Cash dividend of Rs.300 million @ 15% was distributed in 2003. The company earned net profit of Rs.1,163 million in 2003. Income from core activities has shown signs of improvement. Income from long-term financing increased from Rs. 337.2 million in 2002 to Rs.430.6 million in 2003. The comparative financial position of the company is depicted in Table-II.

Table-II COMPARATIVE INCOME STATEMENTS:
(Rs. in million)

For the year ended Dec. 31,

2003

2002

2001

2000

1999

Income

1,740.2

1.097.5

890.7

1,107.4

964.5

Net Profit

1, 163.3

811.1

177.2

155.7

326.8

Dividend

300.0

200.0

140.0

120.0

160.0

RATIOS:

Return on Average Equity (%)

28.5

25.4

6.0

5.7

12.5

Return on Average Assets (%)

9.9

8.3

1.9

1.7

3.3

Dividend Payouts (%)

15.0

10.0

7.0

6.0

8.0

 

 

STRATEGIC INVESTMENT:

Saudi Pak has been diversifying its activities within the ambit of financial services with the objective to reap the benefits of synergy. The strategic investments of Saudi Pak Industrial and Agricultural Investment Company (Pvt) Limited comprise of the following:

SAUDI PAK LEASING COMPANY LIMITED

Saudi Pak acquired 30 per cent stake in Standard Chartered Mercantile Leasing Company Limited now Saudi Pak Leasing Company Limited in 1997. The company is listed on the Stock Exchange and is fourth largest company in leasing sector in Pakistan. The total assets of the company stood at Rs.3,746 million as on June 30, 2004. The company generated total revenues of Rs. 310.0 million and earned net profit after tax of Rs.62.0 million during the year ended June 30, 2003. Cash Dividend @ Rs.10% along with 15% Bonus was declared for FY 2003. The company has been awarded long-term entity rating of A from JCR-VIS Credit Rating Company Limited.

SAUDI PAK COMMERCIAL BANK LIMITED

Saudi Pak acquired controlling interest in Saudi Pak Commercial Bank Limited in 2001. The Bank has a paid up capital of Rs.2.250 million and is listed on the stock exchange. It has its main office in Karachi and a network of 28 branches operating in major cities of the country. The Bank mobilizes deposits of all types and provides full range of funded and non-funded financing facilities to its customers. The deposits of the Bank stood at Rs.30.02 billion, advances portfolio at Rs. 23.733 billion and total assets at Rs.40.3 billion as on June 30, 2004.

SAUDI PAK TOWER

Saudi Pak owns a twenty-storied building in Islamabad known as Saudi Pak Tower. The building which is a landmark in Islamabad was constructed in 1991 and is the only commercial office building in the country which has been awarded ISO-2000 Certification. A major portion of the building has been leased out. The tenants of the building include United Nations, multinational companies and local prestigious organizations. An executive Business Center has been established in the tower. The Center comprises of offices equipped with latest state of the art facilities.