Investment Banks/Investment Co: FIRST STANDARD INVESTMENT BANK LIMITED - Year Ended 31-12-2003
This investment bank has emerged after merger of other entities into it subsequently the name of the bank was proposed to be changed to Crescent Standard Investment Bank Ltd.
Further process of merger include Paramount Leasing Limited, Pacific Leasing Company Limited and First Leasing Corporation Limited.
The directors emphasised that with the proposed merger, it will become the largest investment bank in the country with well diversified business lines in the increasing competitive financial market.
With the merger the investment bank will increase the balance sheet footing of around Rs 6,500 million and a paid up capital of Rs 1,000 million.
During the year under review, the investment bank generated gross revenue of Rs 589.07 million as compared to Rs 707.87 million posted in the comparative period of eighteen months.
It earned pretax profit of Rs 12.44 million as compared to a loss of Rs 90.28 million in the preceding comparative period.
First Standard Investment Bank Limited (FSIBL) is incorporated as a public limited company in the province of Sindh. Its shares are quoted on all the stock exchanges of the country.
Its registered office is in Lahore and it operates two branches, one each in Karachi and Lahore.
The organisation is engaged in investment finance activities, in accordance with the license granted by the Securities and Exchange Commission of Pakistan (SECP) and the modaraba business consequent to the merger of the former First Crescent Modaraba with the company.
SECP regulates and supervises the company, under the Non-Banking Finance Companies (Establishment & Regulation) Rules 2003.
It acquired controlling interests in three leasing companies, namely Paramount Leasing Limited, First Leasing Corporation Limited and Pacific Leasing Company Limited for their merger with and into the company.
The share in the company at present has been placed under the Defaulters' List Today's closing quotation of the price of its share is Rs 9.0 which is at 10 percent discount to the par value.
During the last one year, the share's market value sharply appreciated from below half of the par value to above the par value. The share price improved from Rs 4.90 per share to Rs 12.50 per share.
The agenda of 13th Annual General Meeting (AGM) of the shareholders of FSIBL contains following special business.
The approval for the change of the name of the company from First Standard Investment Bank Ltd to Crescent Standard Investment Bank Ltd, as proposed by the Board of Directors for sanction by SECP.
The financial statements of the company practically cover around seven months of effective operations of the merged entity after the approval of merger of First Crescent Modaraba into FSIBL was sanctioned by the Honourable High Court, Lahore in May 2003.
The Balance Sheet figures are as of December 31, 2003, and the comparative figure is of December 31, 2002.
Incase of P&L account the figures are for 12 months ended on December 31, 2003 and the comparative figures are for 18 months ended on December 31, 2002.
The bank has a paid-up capital of Rs 737.72 million and capital reserve of Rs 69.77 million but the accumulated deficit of Rs 462.49 million has substantially reduced the equity. Hence the break-up value of the share of FSIBL has gone down much below par value at Rs 4.68 per share.
An amount of Rs 42.80 million is in the account of supplementary capital (Financial Deepening Challenge Fund).
This represents free of charge contributory fund provided by Financial Deepening Challenge Fund, UK, on the arrangement that the company (FSIBL) will also contribute double the amount. The fund so contributed will be invested under SME financing window project.
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Performance Statistics (Million Rupees)
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June 30 2003 2002
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Share Capital-Paid-up: 737.72 737.72
Capital Reserves: 69.77 68.45
Accumulated (Loss): (462.49) (467.76)
Shareholders Equity: 345.00 338.41
Surplus (Deficit) on
Revaluation of Investments: 99.49 (12.58)
Supplementary Capital: 42.80 21.97
Redeemable Capital: 276.58 527.51
L.T Deposits: 55.93 41.22
Customers Deposits: 614.47 152.27
Current Liabilities: 3,362.45 2,398.65
Tangible Fixed Assets: 757.56 674.30
Business Acquisitions: 281.25 297.73
Deposits, Deferred
Cost & Asset: 121.40 120.60
Finances Under Morababa
Arrangements: 113.18 0.95
Long Term Investments: 180.28 349.97
Current Assets: 3,343.05 2,023.90
Total Assets: 4,796.72 3,467.45
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Revenue, Profit & Pay Out (P&L 12 Months-18 Months)
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Revenues
Operating Lease Rentals: 230.83 366.66
Profit on Finances
Under Musharaka/Morabaha
Arrangements: 84.71 200.22
Profits on Funds Placed
With Financial Institutions: 22.71 58.19
Return on Investments: 215.59 58.96
Other Income: 35.23 23.84
Total Income: 589.07 707.87
(Expenditures): (582.15) (796.31)
Provisions: 5.52 (1.84)
Profit/(Loss) Before Taxation: 12.44 (90.28)
Profit/(Loss) After Taxation: 6.59 (18.23)
Earnings Per Share (Rs): 0.09 0.25
Share Price (Rs) Dated 21.06.2004: 9.00 -
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Financial Ratios
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Price/Earning Ratio: 100.00 -
Book Value Per Share: 4.68 4.59
Price/Book Value Ratio: 1.92 -
Current Ratio: 0.99 0.84
Net Profit Margin (%): 1.11 (2.57)
R.O.A (%): 0.14 0.52
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COMPANY INFORMATION: Chairman: Manzurul Haq; Chief Executive Officer: Mahmood Ahmed; Company Secretary: Tariq Aleem; Chief Financial Officer: Shahid Latif Dar; Registered Office: Unit No 6, Happy Homes, 38-A-3 Main Gulberg, Lahore; Head Office: 14-C Main Gulberg Lahore; Karachi Office: 701-702 Fortune Centre Shahrah-e-Faisal Karachi; Branches Offices: Lahore, Karachi.
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