Standard Chartered Modaraba annual review meeting held

The Standard Chartered Modaraba, member of Standard Chartered Group held its fifth Annual Review meeting of certificate-holders on October 21 at the Institute of Bankers here.
Speaking on the occasion, Radar Kazmi, chairman, Standard Chartered Services of Pakistan Private Ltd, the management company of the Standard Chartered Modaraba, and chief executive, Standard Chartered Bank, said: "During the period under review, the business gained momentum registering an overall portfolio increase by 12.75 percent. Despite the fact that commercial banks have entered into the leasing business arena coupled with increasing pressure on interest rates, the net profit of the year ended June 30, 2004 was Rs 114 million.
The impact on profits would have been even higher had the management not exercised strict control over curtailing financial charges and operating expenses. Last year, the profit figure represented a record high level, as it included non-recurring items."
The Modaraba management is aware of the stiff competition that it is faced with and to meet the same and also to maintain its track record of high profit pay-outs to its stake-holders, the management is continuously diversifying its product range which can be evidenced by the recent launch of the Consumer Financing Product (Asasa).
Badar Kazmi, in his address, reaffirmed that the Standard Chartered Bank's commitment towards the Modaraba and its management company, the name having been changed earlier this year from First Grindlays Modaraba and Grindlays Services Pakistan Private Limited to the Standard Chartered Modaraba and the Standard Chartered Services of Pakistan Private Limited, respectively. These changes endorse the Standard Chartered Group's commitment to providing complete financial solutions to this market, he added.
He also drew attention of the certificate-holders towards the fact that the Modaraba continues to maintain entity ratings (assigned by Pacra) of AA+ (Double A plus) and A1+ (Single A One plus) for long-term and short-term, respectively.
These ratings are the highest in the entire Modareba and leasing sectors, he said, adding these ratings indicate low expectation of credit risk and very strong capacity for timely payment of financial commitments.
Badar Kazmi said the Standard Chartered Modaraba with 25 percent cash dividend ranks third in the entire Modaraba sector in terms of dividend payment for the year ended June 30, 2004.-PR