JS BANK LIMITED
S.KAMAL HAYDER KAZMI,
Research Analyst, PAGE
Nov 19 - 25, 2012
JS Bank Limited has been formed after the merger and amalgamation of Jahangir Siddiqui Investment Bank Limited and commercial banking operations of American Express Bank Ltd Pakistan. JS Bank commenced operations in Pakistan as a fully scheduled bank on December 30, 2006. The Bank has a primary dealer license for government securities from the State Bank of Pakistan (SBP). JS Bank's focus is to provide a quality and innovative range of banking services and products. The Bank's key activities can be categorized into different business units like; retail and consumer banking, treasury corporate & commercial banking and investment banking. The Bank's retail banking offers a variety of products and services for both depositors and borrowers at competitive rates. Through its corporate banking division, the bank delivers the right financial solutions and corporate credit facilities tailored to meet the needs of every type of business and industry. As a specialist service provider, the bank understands the expectations of their corporate customers, and provide tailor made products and services to meet their exact needs. The Bank's operational strategy is to see things from the customer's perspective and deliver the highest quality of services and quick response to its clients. The Bank assigns a relationship team to each corporate customer. Through this dedicated relationship team, customers can also access all areas of the JS Group, enabling them to benefit from a comprehensive package of banking/investment solutions. Areas of expertise include: treasury, asset management, corporate finance, brokerage services as well as Islamic banking for shariah-compliant banking services.
JS BANK: FINANCIAL HIGHLIGHTS (Rs. in '000')
SEP 30, 2012
DEC 31, 2011
Assets 70,949,168 53,920,569 Liabilities 62,570,183 46,443,539 Deposits and other accounts 54,239,775 41,487,031 Advances - net 17,229,948 18,018,778 Profit for the period 745,520 240,722 Administrative expenses 1,807,103 1,518,926
The Bank's investment banking group has been the pioneer of numerous landmark transactions brought to the domestic capital markets. The group's legacy dates back to the 90's through a closely held partnership with the then eminent Bear Stearns. With a precedence of both volume and innovation in transactions, for some of the largest corporations in the country, the group also continues to offer market-leading investment banking and ancillary services as an integral part of JS Bank. The Bank has an impeccable track record of successfully executing a wide array of large capital transactions, often under challenging economic and time considerations.
During the nine months period under review, the financial position of the bank grew by 31.58 per cent to Rs 70.95 billion from Rs. 53.92 billion as at December 31, 2011, mainly due to an increase in deposit base from Rs. 41.49 billion to Rs. 54.24 billion, an increase of 30.74 per cent. During the same period, the main growth was recorded in investments which grew by 81.77 per cent. The Bank continues to deliver strong financial performance despite a challenging business environment. JS Bank has earned a profit after tax of Rs. 742.52 million for the nine months period ended September 30, 2012 as compared to the profit after tax of Rs. 240.72 million in the corresponding period last year. Further, the third quarter's results reflect a profit after tax of Rs. 464.31 million as compared to the profit after tax of Rs. 140.32 million in the corresponding period last year. Further, cost control measures have reduced the administrative expenses by 9.3 per cent despite a significant surge in the overall business activity and revenues.
Presently JS Bank has laid its footprint across metropolises of Pakistan with plans to expand its outreach with more branches nationwide this year. JS Bank had agreed to buy out HSBC Bank Middle East Ltd's Pakistani branches and their assets, beating out rival financial conglomerate KASB finance and Turkish banking giant Isbank. The management has agreed on a sale price mechanism. The acquisition of HSBC Pakistan is expected to help JS continue its efforts to build the brand of a stable, high-quality financial institution. With its high minimum deposit requirements and strong customer service, HSBC has attracted some very high net-worth individuals as its clients, in addition to financially stable multinational corporations. It is also expected that this acquisition will act as a catalyst in achieving JS Bank's growth strategy to position the bank as one of the key players in the financial sector with the introduction of premium banking and credit cards suite. The Bank has now met the current Minimum Capital Requirement (MCR) of Rs. 8 billion as prescribed by SBP. Furthermore, SBP has also allowed the bank to increase the paid up capital through a swap of new shares of the bank against shares of JS Investments Limited held by Jahangir Siddiqui & Co. Limited and other investors. Approvals from the shareholders, the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan (SECP) are in place. The Bank is now in the process of completing other procedural formalities. This acquisition will also help the bank to meet the MCR of Rs. 9 billion effective from December 31, 2012.
JS bank plans to further strengthen their branch network to increase brand awareness and mobilize low cost deposits. On the lending side, the management intends to continue their focus on the corporate, commercial and retail sectors.