CRESCENT STANDARD INVESTMENT BANK LIMITED
Sep 27 - Oct 03, 2004
Crescent Standard Investment Bank Limited is the largest investment bank in Pakistan operating with a total asset base of PKR 6.45 billion and an equity base of PKR 784 million. The history of the bank dates back to 1990 when it was incorporated under the name of Al Baraka Investment Bank Limited as a public limited company and was licensed to carry the investment banking activities. It was re-named as Al-Towfeek Investment Bank Limited in 1991. The bank started commercial operations in the same year. The bank was re-licensed in 2003 to carry out activities of investment banking services and leasing operations. The bank's registered office and head is located at Crescent Standard Tower in Lahore, the second largest city and business centre of Pakistan.
Crescent Standard Investment Bank Limited's creation stretches over a period of 14 years. The turning point came in 1997, when First Crescent Modaraba initially acquired and merged Al Ata Leasing Modaraba and thereafter First Confidence Modaraba into it. This was followed by another acquisition of First Crescent Modaraba of Al-Towfeek Investment Bank Limited in the year 2002 and merger of its operations in the investment bank in year 2003. The emerging entity was named as First Standard Investment Bank Limited. The bank continued its quest for further consolidation and acquired Paramount Leasing Limited, First Leasing Corporation Limited and Pacific Leasing Company Limited and merged them into its operations earlier this year. It is arguably the largest and most complex process of consolidation experience in the corporate history of Pakistan, where seven small and weak companies have been merged to create a large and viable organization. The merger is also a mega union of diverse groups of human resources with different set of expertise.
Crescent Standard Investment Bank is a subsidiary of the Crescent Standard Group, the premiers of which are among the most well reputed business personalities in Pakistan. Crescent Standard Group is a sub-conglomerate of Crescent Group and is controlled and owned by three brothers of the Crescent family; Mian Altaf Saleem, Mian Ahsan Saleem and Mian Anjum Saleem. The three brothers represent third generation of the greater Crescent Group, the history of which dates back to early 1940s when their forefathers started with leather business that went on successfully. It all lasted till the partition, when the family had to let go the business set up on the other side of sub continent.
After migration to Pakistan, the family started off with its focus on textile and agro-based business and established Crescent Textile Mills Limited in 1954 followed by the establishment of various other industrial units between fifties and sixties including Crescent Jute Products, Crescent Boards Limited and Shakarganj Mills Limited, which is currently one of the largest sugar mill in Asia. Rapid expansion during the 1950s and 1960s due to aggressive industrial policies of the government, allowed Crescent Group to emerge as the one of the top industrial conglomerates that dominated Pakistan's industrial sector in the sixties.
Crescent Standard Group has emerged as the focus of premiers have widened towards Pakistan's banking and financial sector. The group has undertaken extensive mergers and acquisitions in Modaraba, Leasing, Mutual Fund and Investment Banking domains and now holds a cluster of most prominent financial institutions in Pakistan.
Crescent Standard Investment Bank Limited with a highly skilful management and operational experience, provides financing and investment opportunities to both corporate and individual investors. The bank is committed to provide solid returns to its clients based on sound investment decisions. The bank provides a broad range of investment opportunities such as Certificates of Investment (COIs), Islamic financing such as Musharika, Morabaha and Portfolio Management Schemes.
Based on specific customer needs, the bank offers both short-term and long-term financing facilities that include but not limited to leasing, Morabaha, Musharaka and term financing. For the corporate clients, the services offered include Underwriting, Initial Public Offerings, Private Placements and Asset Management Schemes.
The bank has opened a separate Islamic Banking window in the true spirit and offers products both in asset management and liability management. The Islamic banking operations are completely segregated through a tailored Management Information System.
The management of Crescent Standard Investment Bank Limited consists of experts that have professional qualifications and years of experience in their respective areas of expertise. The bank has currently been awarded an entity rating of 'BBB' (long-term) and 'A 3' (short-term) by JCR-VIS Credit Rating Company.
The synergies of the merger of Paramount Leasing Limited, Pacific Leasing Company Limited and First Leasing Corporation Limited into Crescent Standard Investment Bank Limited have started to emerge and the bank posted an earnings per share for June 30th 2004 of Rs. 1.42 compared to a negative earnings per share of Rs. 0.61 for the same period last year. The bank has successfully completed its management re-structuring by consolidation of the existing expertise available and also by hiring new professionals in order to provide most efficient services to its customers.
At present, the bank is carrying out its business through a network of four branches situated at prime locations of Karachi, Lahore, Islamabad and Peshawar. The bank is head quartered at Lahore in Crescent Standard Towers, at main boulevard Gulberg, a building owned by the Crescent Standard Group with of all its key business entities.
The bank's main focus, among others, has been to penetrate the market of corporate finance & advisory and investment banking. The bank has a centralized corporate finance group undertaking client-focused investment banking and corporate financial advisory services to corporate clients.
The corporate finance group has an extensive network of clients, investors and business relationships that have been cultivated over a very short period of time. Their expertise lies in both financial and industrial sector, financial engineering and debt raising. They have carried out some of the most exclusive and prolific transactions that have made them pioneer among the corporate financial advisory circles in Pakistan.
The broad range activity base of corporate finance and investment banking group of the bank includes issuance of debt instruments for companies, structuring, arrangement and advising mergers and acquisitions, public issue structuring arrangement and advisory, initiating green field projects, underwriting public issues, leveraged buyouts, mergers and acquisitions, securitisation, project advisory and finance, privatization advisory and associated financial due diligence, capital markets placements, corporate credit rating advisory, loans and syndications and financial restructuring etc.
Another major activity center of the bank is the treasury management group, which is being managed by some of the most reputed and dynamic professionals in the market. The bank's treasury in addition to undertake the core treasury functions is also involved in undertaking portfolio management for the Crescent Standard Group, capital market placements, trading debt instruments and maintaining credit lines etc.
The Islamic banking department of the bank is focused towards implementation and maintenance of riba-free banking through constant development of Islamic instruments for the bank. The same is done through extensive research in the domains of assets and liabilities management with the assistance of Islamic scholars, followed by product development, training of personnel and implementation of the products through out the activity base of bank.
Crescent Standard Investment Bank is well poised and geared up to maintain its growth potential for the coming years. The management is planning to further expand its business operations by operating eight new branches for broadening its customer base and intends to make the bank as one of the largest Islamic investment bank of the country.
The management has inherited rich experience of Islamic investment banking and professional ethics through Crescent Group's prolific background and is ready to face the challenges imposed by the international and Pakistani economic avenues while maintaining its course according to the vision and mission of the Crescent Standard Group.