Saudi Pak paid-up capital rises to Rs 2,250 million

Saudi Pak Commercial Bank Limited held its 10th Annual General Meeting (AGM) in Islamabad on April 27, 2004. The shareholders approved the audited accounts for the year ended December 31, 2003.
Board chairman, Muhammad Rashid Zahir in his address to the shareholders said that the most significant event of 2003 for the Bank was increase in its paid up capital from Rs 1,500 million to Rs 2,250 million through issuance of 50 percent right shares. Besides, sponsors injected funds amounting to Rs 650 million as subordinated debt.
As a result, he said, the Bank achieved the Capital Adequacy Ratio (CAR) to the required level fixed by State Bank.
The shareholders expressed their satisfaction and appreciated the steps taken to improve the capital adequacy of the bank.
Rashid Zahir informed the shareholders that the bank has shown encouraging operating and financial results for the said year.
In 2003, the bank, by and large, completed its restructuring process and sharpened its focus on operations. Deposits increased by 99 percent to Rs 24,578 million and gross advances by 107 percent to Rs 20,240 million. The total assets base surged to Rs 35,142 million as on December 31, 2003.
Financial discipline, balanced sector exposure, prudent risk management and stringent expense controls helped the Bank in strengthening its financial position, the Board chairman said. Zahir said the bank made concerted efforts to recover the non-performing advances.
During the year under review, an amount of Rs 171.6 million was recovered in cash and a number of classified accounts were restructured or rescheduled. The auction of various mortgaged properties took place and action without intervention of court was initiated against major defaulters under recovery Ordinance 2001.
The ratio of performing advances to total advances improved markedly to 84 percent in 2003.
The Chairman informed the shareholders that the bank delivered satisfactory financial results in 2003.
Gross revenue exceeded Rs one billion mark registering a growth of 79.5 percent to Rs 1,301.0 million from Rs 724.8 million in 2002 and fee based income to Rs 207.9 million from Rs 105.4 million during the same period.
Notwithstanding the softening in mark-up rate regime and the narrowing down of spreads, the Bank was able to earn net profit before tax of Rs 979.0 million during the year as against restated profit of Rs 841.7 million in 2002.
Net profit after tax for the year amounted to Rs 378.4 million as compared to restated profit of Rs 653.9 million in the previous year.