Investment/Investment Company: ATLAS INVESTMENT BANK LIMITED - Year Ended 30th June, 2005

During the period under review, the investment bank has been able to reach new heights in shareholders equity, total assets and gross revenue as can be seen from the Performance Statistics appended with this column.
The highest component of the gross revenue was income from investments followed by income from leasing operations. Almost all profit centres were on the higher side. Gross Revenue amounted to Rs 880.23 million (2003-04: Rs 662.60 million) showing 32.8% increase over the preceding year's. The growth is nearly one-third (1/3) of last year's amount which is highly commendable.
The bank posted pre-tax profit at Rs 308.86 million showing 34.8% increase over preceding year's Rs 229.17 million. The bank is diversifying its business activities and reinforcing Research Department through establishing fundamental and technical research.
Atlas Investment Bank Limited is public limited company and was incorporated in Pakistan on October 2, 1990. It is listed on the Karachi, Lahore and Islamabad stock exchanges.
The company is engaged in the business of investment, finance services and leasing as a Non-Banking Finance Company (NBFC). The company is regulated by the Securities and Exchange Commission of Pakistan (SECP).
The company was launched as a joint venture between Atlas Group of Companies and the Bank of Tokyo - Mitsubishi Limited with Asian Development Bank as its first subscriber.
The company is one of the constituent members of Atlas Group of Companies which has diversified interests in car and motorcycle progressive manufacture, and investment banking, manufacturing of automotive batteries and spare parts etc.
The registered office of the company is situated at Federation House, Sharae Firdousi, Karachi. Its other offices are located in Karachi and Lahore stock exchange buildings as it is a corporate stock brokerage house also. It is also maintaining offices at Islamabad and Faisalabad. It has been reported that the company's Islamabad Branch is being shifted to new premises as it is upgraded where it will commence brokerage business as well.
The Faisalabad office has also been earmarked for doing leasing and equity brokerage business.
The investment bank's growing achievements and performance have been recognised by Pakistan Credit Rating Agency Ltd (Pacra).
The rating agency has upgraded the bank's long-term entity rating from A- to A+ (Single A plus). This reflects an improvement by two levels in a single year. The short term entity rating too was upgraded from A-2 to A-1 (A one).
In the pattern of shareholding dated June 30, 2005 the bank's Directors etc held 12.29% of the company's stock. Iftikhar H. Shirazi, Aamir H. Shirazi and Ali H. Shirazi shareholdings stocks aggregated to 32.61%. The bank's 2363 individual investors from local general public held 13.13% of the bank's stock.
During the last one year the market value of Atlas Investment Bank ranged between Rs 20.90 and Rs 29.75 per share.
At present the share's market value has been recorded at Rs 21.90 per 10-rupee share. During the last years the bank's dividend pay-out remained at 30% per year which reflects excellent track record of profit distribution. Out of these pay-outs 20% was announced for Bonus Stock Dividend and 10% as cash dividend. Considering the present low yield on several bank deposits the yield on the investment in the bank's equity is impressive.
The bank has put on the agenda of its 14th AGM, a special item to approve the increase in authorised capital to rupees one billion from existing rupees half a billion.
During the year under review (FY 2004-05), the total assets of the bank grew to Rs 7.117 billion from Rs 6.140 billion in the preceding year FY 2003-04.
Investment in equities, placements and fixed income securities at Rs 2.281 billion as compared to Rs 2.355 billion, last year.
Net Investment in Lease finance grew to Rs 3.207 billion as compared to Rs 2.490 billion in the preceding year. The directors emphasised that Atlas Investment Bank is one of the top six brokerage houses but it stood clear even during March 2005 debacle.
Lease disbursements increased to Rs 2.050 billion and increased by 23.27% over the previous year's 1.663 billion.

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Performance Statistics                        (Million Rupees)

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30th June                                    2005         2004

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Share Capital-Paid-up:                     421.69       351.41

Reserves:                                  429.76       345.66

Shareholders Equity:                       851.45       697.07

(Deficit)/Surplus on

Revaluation of Investment-Net:             (22.25)       26.29

L.T. Debts:                              1,145.82       962.43

L.T. Deposits:                             387.74       294.72

L.T. Registered Deposit Certificates:      117.96       151.04

Deferred Taxation:                         156.02        99.27

Current Liabilities:                     4,480.70     3,909.48

Fixed Assets:                               56.15        58.77

Rooms & Cards:                              37.25        37.25

L.T. Investment:                           111.66       118.03

Net Investment in Lease Finance:         1,693.51     1,297.07

L.T. Finances:                             174.93       175.35

L.T. Deposits & Deferred Cost:               5.28         6.19

Current Assets:                          5,038.66     4,447.64

Total Assets:                            7,117.44     6,140.30

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Revenue, Profit & Pay Out

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Income from Investment:                    292.28       279.02

Income from Leasing Operations:            221.23       205.69

Income from Term Finances:                  63.34        51.18

Income from Placement:                     138.11        48.27

Income from Brokerage:                     157.89        74.74

Other Income:                                7.38         3.70

Gross Income:                              880.23       662.60

Financial Charges:                        (364.24)    (214.42)

Administrative & Operating (Expenses):    (191.85)    (155.40)

Amortization of Deferred Costs:             (0.83)      (0.83)

Other Charges:                              (0.96)      (6.56)

(Provision)/Reversals-Net:                 (13.49)     (56.22)

Total (Expenditure & Provisions):         (571.37)    (433.43)

Profit Before Taxation:                    308.86       229.17

Profit After Taxation:                     189.53       177.39

Earning Per Share (Rs):                      4.49         4.21

Share Price (Rs) on 10/10/05:               21.90            -

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Financial Ratios

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Price/Earning Ratio:                         4.88            -

Book Value Per Share:                       20.19        19.84

Price/Book Value Ratio:                      1.08            -

Current Ratio:                               1.12         1.14

Net Profit Margin (%):                      21.53        26.77

R.O.A      (%):                              2.67         2.89

R.O.C.E (%):                                 7.19         7.95

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