Commercial Banks: KASB BANK LIMITED - Quarter Ended March 31, 2005 (Un-audited)
KASB Bank Limited (formerly Platinum Commercial Bank Limited) was incorporated on October 13, 1994. The name was changed on February 21, 2003, when the majority shareholding was acquired by the KASB Group. Later, Khadim Ali Shah Bukhari & Co and KASB Leasing Limited were merged into KASB which also owns a 100% stake in KASB Securities (Pvt) Limited and KASB Technology Services Limited. KASB shares are listed on Lahore, Islamabad and Karachi Stock Exchanges.
The review hereunder is that of the KASB Bank Limited, without consolidation with its subsidiaries.
KASB operates through a network of 21 branches strategically located all over the country. It offers a complete range of financial services and the client base at large has access not only to commercial and consumer banking services, but also to lease financing, equity & debt securities brokerage, investment banking and investment advice. In April 2004, PACRA had assigned medium to long-term entity rating of KASB to BBB+ (Triple B Plus) and short-term rating to A2 (A Two).
Total liabilities and shareholders equity of KASB at 89% and 11% of total assets respectively as on December 31, 2004 maintained their respective position as on March 31, 2005 as well. Total assets on March 31, 2005 at Rs 16 billion were almost the same as on December 31, 2004.
Cash and bank balances at 22% of total assets on December 31, 2004 declined to 12 % of total assets as on March 31, 2005. Funds were apparently utilised to raise Advances from 51 % of total assets (Rs 8.3 billion) as on December 31, 2004 to 61% of total assets (Rs9.8 billion) as on March 31, 2005.
Investments remained at 17% of total assets on both these dates. The composition of Investments and Advances by type/ segment in relative terms on these dates is given below.
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Investments (Rs in 000) (Un-audited) (Audited)
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Investments by Type March 31, 05 December 31, 04
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% of Total % of Total
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1- Held for trading securities: 2.0% 0.0%
2- Available for sale securities: 37.1% 39.3%
3- held to maturity securities: 53.2% 54.0%
4- associates, subsidiaries: 7.7% 6.7%
5- Provisions for diminution: 0.0% 0.0%
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Total: 100.0% 100.0%
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Investment by Segment
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1- Federal Government securities: 65.5% 60.6%
2- Ordinary shares, fully paid: 13.0% 15.4%
3- TFCs, Bonds, etc: 13.8% 17.3%
4- Investment in subsidiaries: 7.7% 6.7%
Sub-total: 100.0% 100.0%
5- Provisions for diminution: 0.0% 0.0%
Total: 100.0% 100.0%
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Advances (Rs in 000) (Un-audited) (Audited)
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March 31, 05 December 31, 04
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% of Total % of Total
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1- Loans, cash credit, etc: 82.8% 86.2%
2- Net investment in finance lease 13.6% 14.7%
3- Bills Discounted: 1.6% 1.5%
Sub-total: 98.0% 102.4%
4- Financing of COT: 4.1% 0.0%
Sub-total: 102.1% 102.4%
5- Provisions: -2.1% -2.4%
Total: 100.0% 100.0%
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Net mark up income to KASB for the quarter ended March 31, 2205 increased by 41% to Rs 95 million from Rs 67 million for the quarter ended March 31, 2004. Profitability had a boost during the quarter under review due to five-fold increase in fee income which was Rs 80 million as against Rs 16 million for the corresponding quarter last year. Fee & commission, dividend income, income from dealing in foreign exchange and net gain on sale of investments contributed to this performance. KASB closed the quarter with profit after tax at Rs 47 million as against Rs 7 million for the corresponding quarter last year. The bank was thus able to achieve return on equity at 2.7 % for this quarter as against 0.4 % during the corresponding quarter last year. Performance statistics are enclosed.
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Performance Statistics (Rs in 000 (Un-audited) (Audited)
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Balance Sheet) On December 31,
As on March 31, 2005 2004
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Total Assets: 16,068,533 16,213,552
Cash, balances with banks: 2,004,541 3,563,842
Investments-Net: 2,782,791 2,714,916
Advances-Net: 9,818,397 8,294,759
Deposits, other accounts: 10,835,996 11,201,209
Total Liabilities: 14,310,628 14,481,828
Share Capital: 1,707,379 1,707,379
Reserves, Retained earnings: 168,342 121,684
Surplus on Revaluation of Assets: -38,576 -18,099
Total Equity: 1,757,905 1,731,724
Subordinated Loan: 0 0
Equity and Sub. Loans: 1,757,905 1,731,724
Contingencies and Commitments: 12,444,739 12,393,030
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Ratios:
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Cash and bank/Total Assets: 12% 22%
Investments/Total Assets: 17% 17%
Advance/Total Assets: 61% 51%
NPLs/Advances-Gross: 7% 6%
Provisions/Advances - Gross: 2% 2%
Provision Required/Provision Held 100% 100%
Deposits/Total Assets: 67% 69%
Total Liabilities/Total Assets: 89% 89%
Total Equity/Total Assets: 10.9% 10.7%
Equity and Sub. Loans/Total Asset 10.9% 10.7%
Deposits/(Equity + Sub-Loans)-X: 6.2 6.5
Advances/Deposits: 91% 74%
Investments/Deposits: 26% 24%
Conting.& Comm./(Equity + SL)-X: 7.08 7.16
Book Value Per Share: 10.30 10.14
Quoted Share Price (25-7-05) - Rs 11.50 -
Price/Book Value Ratio: 1.12 -
Income Statement (Q end March 31) 2005 2004
Markup/interest earned: 223,150 111,924
Markup/interest expensed: 119,121 56,131
Net Markup/interest income: 104,029 55,793
Net mark up income after provision 94,642 67,140
Total non-markup income: 80,120 16,328
Net markup and non markup income: 174,762 83,468
Admin expenses: 125,604 80,852
Profit before Taxation: 49,158 6,594
Profit after taxation: 46,658 7,029
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Ratios: (Quarterly basis):
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Net Markup Income/Total Assets: 0.6% 0.3%
Net markup income after Pro./TA: 0.6% 0.4%
Non-Markup Income/Total Assets: 0.5% 0.1%
Net markup, non markup income/TA: 1.1% 0.5%
Admin expense/Total Assets: 0.8% 0.5%
Profit before Taxation/Total Assets 0.3% 0.0%
Profit after taxation/Total Asset 0.3% 0.0%
Profit after tax/Total Equity: 2.7% 0.4%
EPS- (year-end paid up) - Rs: 0.27 0.04
Price Earning (Quarterly) Ratio: 42.08 -
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Cash Flow Summary (Rs in 000)
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Net cash flow from operations: -1,250,868 -820,372
Net cash flow from investing: -71,451 486,746
Net cash flow from financing: -4,446 -15,001
Net cash flow position for period -1,326,765 -348,627
Cash, cash equivalent, end of period 1,709,495 622,667
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COMPANY INFORMATION: Chairman: Nasir Ali Shah Bukhari; President & Chief; Executive Officer: Ashraf N. Irshaduddin; Director: H.U. Beg; Company Secretary & CFO: Muhammad Nasir Jamal; Legal Advisors: Ghulam Ali & Co Auditors: A.F. Ferguson & Co, Chartered Accountants; Registered Office and Head Office: Business & Finance Centre, I.I. Chundrigar Road, Karachi, Pakistan; Web Address: www.kasbbank.com
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