The net leased assets of the First Habib Bank Modaraba crossed Rs 1 billion mark in the year ended on June 30, 2005 because of healthy growth recorded in its core business segments.
The Annual Review Meeting of the First Habib Bank Modaraba (FHBM) for the year ended June 30, 2005, was held at Habib Bank Plaza recently. Saeed Uddin Khan (CEO, FHBM) presented the performance highlights of the Modaraba to certificate holders.
In the backdrop of an intensely competitive business environment, FHBM was able to sustain healthy growth in its core business segment, ie leasing, through proactive marketing, customer focus and proper utilisation of its business synergies.
During the year under review new leases of Rs 640 million were written and lease disbursements posted a record 53 percent growth over last year. Net Leased Assets crossed the Rs 1 billion mark in 2005, increasing by 48 percent from Rs 729 million to Rs 1,078 million during the year under review. Improved business volumes led to significant increase in total asses of the Modaraba as compared to 2004, showing an increase of 48 percent.
Lease rentals showed robust growth at 75 percent over 2004 while Net Lease Income increased by 38 percent. Profit from its core business increased by 6 percent over last year. However, net income in 2005 was lower because last year it included major contribution from non-recurring items, ie capital gains and dividends. FHBM declared a profit distribution of 13 percent in 2005 as compared to 16 percent in 2004.
FHBM is a part of the Habib Bank Group and one of the major players in the Modaraba sector of Pakistan. The IRR on leases started improving at the tail end of FY 2005. The current trend of appropriate pricing strategies and sustained business growth will have a healthy impact on its performance. FHBM will strive to keep its focus on its core business, maintain the growth momentum and add value to all the stakeholders, the report said.
Comments
Comments are closed.