Investments Banks/Investment Companies: FIRST INTERNATIONAL INVESTMENT BANK LIMITED - Half Year Ended December 31, 2003

The investment bank is a public limited company incorporated in the province of Punjab on February 7, 1990 under the companies ordinance 1984. Its shares are quoted on the Karachi and Lahore Stock Exchanges.
The registered office of First International Investment Bank Ltd (Interbank) is situated at 5 FCC Gulberg Lahore.
Interbank is licensed to carryout all investment finance activities and leasing operations as a Non-Banking Finance Company. Based on financial results for the year ended June 30, 2003, Pakistan Credit Rating Agency (PACRA) maintained the long term credit rating of Interbank at 'A' and short term rating at 'A1'.
In order to meet the minimum equity requirement prescribed by the Securities & Exchange Commission of Pakistan (SECP), Interbank announced in October 2003, a Rights Issue of Rs 100 million through issuance of 10 million right shares at par in proportion of 200 ordinary shares for every 529 ordinary shares held.
The right issue has been fully subscribed. As a result, Interbank's equity will reach Rs 573 million which is well in excess of SECP's minimum requirement of Rs 500 million.
At present the share in the bank is trading at Rs 17.80 per share carrying 78% premium over the par value of Rs 10.
During the last one year the price of the share substantially appreciated from Rs 12 to Rs 20 per share. The right letter is being transacted at Rs 3.
During the half year ended December 31, 2003 (HY 2003-04) the bank's total income at Rs 139.64 million and after tax profit at Rs 23.94 million shows declined by 28.02% and 47.67% respectively from the corresponding figures of the same period last year (SPLY).
Financial charges substantially declined. Income from lease finance surged to Rs 52.09 million from Rs 44.72 million posted in the SPLY showing 16.48% growth.
The least portfolio continues to grow while there is decrease in investments and fund placements.
The directors emphasised that they have consciously decreased investment in govt securities because of declining trading opportunities in such securities.
Interbank has been recently approved as Associate Member of the Karachi Stock Exchange Clearing House.
The bank has also entered a new line of business as facilitators and distributors for various open-end mutual fund schemes.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                              December 31      June 30

                                     2003         2003

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Share Capital-Paid-up:             264.50       230.00

Reserves:                          208.68       219.23

Shareholders Equity:               473.18       449.23

Advance Against Right Issue:        53.56            -

Surplus on Reval of Investment Net:  4.92        47.09

L.T Debts:                         390.09       253.92

L.T Certificates of Deposits:      337.71       333.38

L.T Deposits Lease Contracts:      191.61       145.20

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Deferred Liability-Defined

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Benefit Plan:                        2.23         7.24

Deferred Taxation:                  37.43        52.11

Current Liabilities:             1,403.81     2,055.58

Fixed Assets:                       12.22        14.38

L.T Investments:                   345.96        69.40

L.T Finance:                       127.91       134.54

Net Investment in Lease Finance:   729.24       599.66

L.T Deposits, Prepayments &

 Deferred Costs:                     2.21         4.41

Current Assets:                  1,676.99     2,521.36

Total Assets:                    2,894.53     3,343.75

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Profit & Loss A/c For the Half

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Year Ended December 31               2003         2002

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Revenue

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Income From Investments:            66.05       100.32

Income From Finance Provided:       15.80        29.85

Income From Leasing Finance:        52.09        44.72

Income From Fund Placements:         4.71        17.04

Commission & Fees:                   0.02         0.02

Other Income:                        0.97         2.05

Total Income:                      139.64       194.00

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Expenditure & Provision

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Financial (Charges):               (64.40)     (99.75)

Admin & Operating (Expenses):      (39.76)     (35.49)

(Provision):                        (2.32)      (1.04)

Total (Expenditure & Provision):  (106.48)    (136.28)

Profit Before Taxation:             33.16        57.72

Profit After Taxation:              23.94        45.72

Earning Per Share (Rs):              0.87         1.66

Share Price (Rs) Dated 13.04.2004:  17.80            -

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Financial Ratios

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Price/Earning Ratio:                20.45            -

Book Value Per Share (Rs):          17.88        19.53

Price/Book Value Ratio:              0.99            -

Current Ratio:                       1.19         1.23

Net Profit Margin (%):              17.14        23.56

R.O.E (%):                           5.06        10.18

R.O.A (%):                           0.82         1.81

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