Commercial Banks: MYBANK LIMITED - (formerly Bolan Bank Limited) Quarter ended March 31, 2005 (Un-audited)
Mybank Limited (formerly Bolan Bank Limited) was incorporated on October 7, 1991 as a public limited company under the Companies Ordinance, 1984. The SBP has notified the name change with effect from July 4, 2005.
Earlier, the SECP had issued the Certificate of Change of Name on April 26, 2005. Mybank's registered office is based in Quetta, Balochistan with principal place of business in Karachi, Sindh. It commenced its operations in the year 1992 as a full commercial schedule bank under the license issued by the State Bank of Pakistan.
Mybank presently operates 50 branches in the country. It has spread its network all over Pakistan and Azad Kashmir. All its branches are said to be located at vintage points covering a large segment of population and business houses. Its shares are quoted on Karachi and Lahore Stock Exchanges. Its long term credit rating is BBB (triple B) for the medium and long term, while the short term rating is A-2 (A-two) with a stable outlook by credit rating agency, JCR-VIS.
Mybank is making its modest contribution in all kinds of trade and financing activities to meet the requirements of the importers, exporters and trading houses. In recognition of its services, it has been authorised by Wapda, KESC, SSGCL, SNGPL, PTCL and Water & Sewerage Board to collect utility bills from consumers at all its branches. This is reflected in the fee income earned for the quarter ended March 31, 2005.
Mybank's total assets decreased by 4 % from Rs 13.4 billion as on December 31, 2004 to Rs 12.8 billion as on March 31, 2005. This was mainly due to 13 % decline in deposits from Rs 10.9 billion (81 % of total assets) to Rs 9.5 billion (74 % of TA). Investments increased by 8% from Rs 1.9 billion as on December 31, 2004 to Rs 2.1 billion (16% of TA) as on March 31, 2005. During the same period Advances increased by 7 % from Rs 7.2 billion to Rs 7.7 billion (60 % of TA). Comparative changes during the period under review in the composition of Investments and Deposits are shown below.
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Investments (Rs in 000) (Un-audited) (Audited)
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March 31, December 31,
2005 2004
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Investments by Type % of Total % of Total
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1- Held for trading securities: 9% 5%
2- Available for sale securities 28% 41%
3- held to maturity securities: 63% 53%
Total: 100% 100%
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Investment by Segment:
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1- Federal Government securities 56% 54%
2- Ordinary shares, fully paid: 3% 3%
3- TFCs, Bonds, etc: 14% 13%
4- Other investments: 27% 32%
Sub-total: 100% 102%
Surplus/(Deficit) on revaluation 0% -2%
Total: 100% 100%
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Advances (Rs in 000) (Un-audited) (Audited)
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March 31, December 31,
2005 2004
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% of Total % of Total
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1- Loans, cash credit, etc: 79% 77%
2- Bills Discounted: 1% 1%
Sub-total: 80% 77%
3- Financing of COT: 23% 26%
Sub-total: 103% 104%
4- Provisions: -3% -4%
Total: 100% 100%
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Mybank during the quarter ended March 31, 2005 had 66% increase in the mark up income to Rs 206 million from Rs 124 million mark up income for the corresponding quarter last year. During this period mark up expense increased by 38 % from Rs 32 million to Rs 43 million. This made it possible to raise the net mark up income to Rs 151 million from Rs 73 million - an increase of over 100 %. Fee income had a phenomenal increase from Rs 18 million for the corresponding quarter last year to Rs 63 million for the quarter ended March 31, 2005. It had after tax profit of Rs 97 million for the quarter under review as against Rs 10 million after tax profit for the quarter ended March 31, 2004. Return on equity for the quarter at 5.5 % is quite attractive (22% on annualised basis). Performance statistics are enclosed.
To turn around Mybank, the management is said to be focusing on improving operational efficiency, creating strategic alliances, developing innovative products in enriching customer relationship and achieving greater employee efficiency with the objective of maximising shareholders value.
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Performance Statistics (Un-audited) (Audited)
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Balance Sheet (Rs in 000) On December 31,
As on March 31, 2005 2004
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Total Assets: 12,840,204 13,435,897
Cash, balances with banks: 1,589,417 2,275,787
Investments-Net: 2,083,029 1,937,287
Advances-Net: 7,732,953 7,245,371
Deposits, other accounts: 9,490,839 10,922,515
Total Liabilities: 11,056,151 11,787,126
Share Capital: 1,523,813 1,523,813
Reserves, Retained earnings: 257,580 160,119
Surplus on Revaluation of Assets 2,660 -35,161
Total Equity: 1,784,053 1,648,771
Subordinated Loan: 0 0
Equity and Sub. Loans: 1,784,053 1,648,771
Contingencies and Commitments: 5,180,252 6,177,249
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Ratios:
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Cash and bank/Total Assets: 12% 17%
Investments/Total Assets: 16% 14%
Advance/Total Assets: 60% 54%
NPLs/Advances-Gross: 12% 12%
Provisions/Advances-Gross: 3% 3%
Provision Required/Provision Held: 100% 100%
Deposits/Total Assets: 74% 81%
Total Liabilities/Total Assets: 86% 88%
Total Equity/Total Assets: 13.9% 12.3%
Equity and S. Loans/Total Assets 13.9% 12.3%
Deposits/(Equity + Sub-Loans)-X: 5.3 6.6
Advances/Deposits: 81% 66%
Investments/Deposits: 22% 18%
Conting.& Comm./(Equity + SL)-X: 2.90 3.75
Book Value per Share: 11.71 10.82
Quoted Share Price (19-7-05) - R 15.00 -
Price/Book Value Ratio: 1.28 -
Income Statement (Q end March 31 2005 2004
Markup/interest earned: 206,215 124,214
Markup/interest expensed: 43,398 31,559
Net Markup/interest income: 162,817 92,655
Net mark up income after provisions: 150,627 72,655
Total non-markup income: 63,490 18,257
Net markup, non markup income: 214,117 90,912
Admin expenses: 112,713 79,312
Profit before Taxation: 101,404 11,600
Profit after taxation: 97,461 10,157
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Ratios: (Quarterly basis)
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Net Markup Income/Total Assets: 1.3% 0.7%
Net markup income after Pro./TA: 1.2% 0.5%
Non-Markup Income/Total Assets: 0.5% 0.1%
Net markup, non mark income/TA: 1.7% 0.7%
Admin expense/Total Assets: 0.9% 0.6%
Profit before Taxation/Total Assets: 0.8% 0.1%
Profit after taxation/Total Assets: 0.8% 0.1%
Profit after tax/Total Equity: 5.5% 0.6%
EPS- (year-end paid up) - Rs: 0.64 0.07
Price Earning Ratio: 23.45 -
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Cash Flow Summary (Rs in 000)
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Net cash flow from operations: -689,515 -293,044
Net cash flow from investing: -61,853 -59,084
Net cash flow from financing: 0 0
Net cash flow position for period: -751,368 -352,128
Cash and cash equ. at end of period 1,724,418 1,261,807
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COMPANY INFORMATION: Chairman: Iqbal Alimohamed; President and CEO: Muhammad Azimuddin; Director: Danish Iqbal; Auditors: M. Yousuf Adil Saleem & Co, Chartered Accountants; Head Office: Mybank Limited Building, Regal Chowk, Jinnah Road, Quetta.; Central Office: 10th Floor Business & Finance Center, I. I. Chundrigar Road Karachi. Web Address: www.mybankltd.com.pk
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