Despite facing a tough competition stemmed from other commercial banks, Saudi Pak Commercial Bank showed satisfactory operations and impressive financial results for the quarter ended March 31, 2005.

June 27 - July 03, 2005

New premises of the Saudi Pak Bank Branch focusing on Pakistan's largest clientele was formally inaugurated in SITE area by the Chairman, SITE Association of Industry, Dr. Mirza Ikhtiar Baig Friday last.

The spacious modernized look of the new branch reflects the bank's renewed commitment to excellence. Mansoor Khan, President & CEO of the bank; Faqir Ejaz Azghar, SEVP; Khalil Qurshi, SVP, and all other senior management of the bank and Executive Committee members of SITE Association were present at the inaugural ceremony.

Speaking on the occasion, Mansoor Khan, President and CEO of the bank, appreciated the role of SITE Association for uplifting the industrial and commercial activities in the SITE, where almost all the leading banks have opened their branches. The new branches will provide all banking facilities at the door step to the SITE industrialists, who, according to him, are the major players of the industrial growth in Pakistan.

The President envisioned a considerable future growth for the bank. The SITE branch is part of the bank's continuous expansion plans for its operations that currently span a network of 38 branches across 18 major cities of Pakistan. According to him SITE branch brings to the total 11 of the bank's branches functioning in Karachi at prime locations.

As a part of its aggressive marketing drive, Saudi Pak Commercial Bank continues to follow its progressive policy on branch expansion. Two more cities were added to the branch network when 10 new branches were opened, increasing the number from 28 in 15 cities to 38 in 17 cities. Twelve more branches will be opened before the year end to increase the network to 50 across the country.

According to the financial results for the first quarter of 2005, Saudi Pak Commercial Bank continued to show the trend of steadily rising profit. The results showed a profit after tax of Rs. 126.3 million as against Rs. 80.3 million during the corresponding period of the previous year.

Despite facing a tough competition stemmed from other commercial banks, Saudi Pak Commercial Bank showed satisfactory operations and impressive financial results for the quarter ended March 31, 2005.

The professionalism in the leadership of the banks speaks in the increased markup income by 45.8 per cent to Rs. 609.8 million in the first quarter of 2005 from Rs. 418.1 million during the corresponding period of 2004.

Mark-up expenses against this income, on the other hand, increased by 38.0 per cent to Rs. 368.7 million from Rs. 267.1 million. As a result, net markup/interest income increased by 59.7 per cent to Rs. 241.1 million from Rs. 150.9 million. The ratio of net markup/interest margin to gross markup income improved to 39.5 per cent as compared to 36.1 per cent in the last comparable period.

It may be recalled that the bank was acquired by the management of Saudi-Pak Industrial and Agricultural Investment Company (Private) Limited and its associates effective September I5, 2001. Saudi Pak Bank faced a big challenge to turn around a fragile and weak bank into a strong and healthy bank consequent to the reopening of the bank after the lifting of the moratorium. The management took necessary steps for image building and succeeded in smooth and safe transition. Within a short period, Saudi Pak Bank has undergone a whole process of transformation. The bank has progressed well and offers good promise and firm hope to its stakeholders for the years ahead.

Chairman, SITE Association of Industry, acknowledged the impressive growth of Saudi Pak Commercial Bank from a troubled bank to a progressive bank with such a strong capital base.

He lauded the appointment of Mansoor Khan as the new President of the bank who has a proven track record as a professional seasoned banker with vast experience of corporate banking. SITE Industrial area offers immense potential and business opportunities for the banks in the area having renowned multinationals, pharmaceuticals, engineering, and other service industries. He also advised bank management to develop new products according to the nature of the activity of SITE.

Dr. Ikhtiar Baig explained that there are 550,000 workers in this area in about 3000 industrial units for which products like project financing, working capital, personal loans and salary accounts can be promoted. He assured his full cooperation to the management of the bank for the success of their new branch.