During FY-04, this commercial bank continued to register upward trend in financial and operating results. For future it aspires to carve its niche in banking sector as one of the leading commercial banks. Hence it is expanding its online branch network and ATM facility and installing an effective risk management infrastructure. Risk management policy and country risk policy duly approved by the board are in place. During the period under review the bank's advances (net) reached Rs 25.828 billion as against Rs 14.317 billion in the FY-03 showing remarkable expansion in this portfolio by 80.4%. There seems to be strategic transition by emphasising more on core business advances than investment.
The bank core registered net income at Rs 1.954 billion as against Rs 1.389 billion in FY-03 showing substantial increase. Pre-tax profit at Rs 1,130.14 million went up by 37% from Rs 825.07 million. With the posting of bonus issue, its paid-up capital will be over Rs 2 billion thus meeting the SBP criterion scheduled for end 2005.
PICIC Commercial Bank Ltd was incorporated on December 27, 1993 and received license from the State Bank of Pakistan to undertake and carry on the business of banking in Pakistan on April 3, 1994. The bank's registered office is situated in Spencer Building I.I. Chundrigar Road Karachi. The bank is engaged in commercial banking and related services. It is listed on the Karachi, Lahore and Islamabad Stock Exchanges.
The bank also expanded its Branch network to 100 including 5 collection booths across the country, thus having a branch network spread in 36 cities. The bank has permission from the State Bank of Pakistan to further expand the network by another 21 branches during 2005. Forty branches have the facility of ATM and another 20 ATMs will be installed in 2005. Online banking has also been introduced in almost all branches in the country.
The bank's Board of Directors has approved, in principle, the merger of PICIC Commercial Bank Ltd (PCBL) and PICIC subject to terms and conditions to be finalised between PCBL & PICIC and approval of shareholders, SBP and other regulatory authorities.
JCR-VIS, the credit rating agency assigned credit rating of 'A' Plus for medium/long term and 'A' one for short term. It is stated that its next credit rating review was scheduled in March 2005.
The bank's ATM facility is of latest version and has access to 1-Link Switch which provide links to 200 ATMs across the country.
On-line banking of the bank has reached the remote areas of the country such as Mingora, Mardan, Bahawalpur, Chaman, Tando Allahyar, Mirpurkhas. On 27th April 2005, the price of PICIC Commercial Bank share was quoted at Rs 36.05 at the close of transactions.
This shows that the bank's investors have growing confidence in the enterprise as the market value of the share is 3.6 times of the par value of Rs 10. During the last one year the peak price of its share had reached quite high at Rs 53.20 per share from the lowest price of Rs 28.25 in the year.
Since 2001, the bank has maintained good track record of profit distribution, being regular and declaring attractive rates of dividend. For the year under review its profit distribution was 40% (cash dividend at 15% plus bonus stock dividend at 25%).
In the present day's dire need of our society, these enterprises which help in solving employment problem are seen with great appreciation. In the case of the bank we find that it has provided increased opportunities for jobs. Its workforce during the year 2004 was 939 as compared to 698 in the preceding year 2003. Not only the number of employees has increased but also it has endeavoured in upgrading the skills and knowledge of its human resource. With the increase in branch network, introduction of new products and services, the bank is likely to create more job opportunities.
The consumer products of PICIC commercial Bank are innovative. Two new consumer products of the bank such as PowerPic-Credit Card Balance Transfer facility and Talimi Loan for overseas studies were launched in 200.
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Performance Statistics (Million Rupees)
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December 31 2004 2003
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Share Capital-Paid-Up: 1,823.25 1,072.50
Reserves & Profit: 1,659.62 711.28
Surplus On Revaluation
of Securities: 46.52 435.49
Shareholders Equity: 3,529.39 2,219.27
Liabilities:
Bills Payable: 676.36 556.48
Borrowing from
Financial Institutions: 3,207.31 4,371.61
Deposits & Other Accounts: 44,091.79 32,499.77
Liabilities against Assets
Subject to Finance Lease: 73.60 60.99
Other Liabilities: 429.16 425.73
Total Liabilities: 48,478.22 37,914.58
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Assets
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Cash & Balances Treasury Banks: 3,495.79 2,335.29
Balance With Other Banks: 790.78 487.48
Lending to Financial
Institutions: 6,748.31 106.25
Investments-Net: 13,199.52 21,736.95
Advances-Net: 25,828.37 14,316.83
Other Assets: 992.13 751.29
Operating Fixed Assets: 781.58 350.80
Deferred Tax Assets: 171.13 48.96
Total Assets: 52,007.61 40,133.85
Net Mark-up/Interest
Income After Provisions: 1,274.39 421.92
Total Non Mark-up/
Interest Income: 679.42 976.54
Net Income: 1,953.77 1,389.46
Non Mark-up/Interest (Expenses): (823.63) (564.39)
Profit Before Taxation: 1,130.14 825.07
Profit After Taxation: 900.08 621.41
Earnings Per Share (Rs): 5.58 4.46
Share Price (Rs) on 27/04/05: 36.05 -
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Financial Ratios:
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Price/Earnings Ration: 6.46 -
Interest Margin: 54.30 28.97
Net Profit Margin (%): 46.07 44.72
Advances/Deposits Ratio (%): 58.58 44.05
R.O.E. (%): 25.50 28.00
R.O.A. (%): 1.73 1.55
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COMPANY INFORMATION: Chairman: Manzurul Haq; President & Chief Executive Officer: Muhammad Bilal Sheikh; Company Secretary: Rahat Saeed Khan; Registered Office: 2nd & 3rd Floor, Spencer Building I.I Chundrigar Road Karachi.
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