Investment Bank: TRUST LEASING & INVESTMENT BANK LIMITED - Half Year Ended December 31 2006

The bank is mainly engaged in the business of leasing and investment banking and is a member of Lahore Stock Exchange. It is a public limited company, regulated by SECP and listed on all three stock exchanges of the country.
It is reported in the half yearly report under review that there was change of sponsors in July 2006 and since then the bank is implementing a plan to recognize the bank on "Contemporary Professional lines."
Expansion in the capital base in the recent past allowed the bank to secure investment financial services license. The management also plans to seek permission from SECP to undertake other activities such as venture capital investment, housing finance services, investment advisory services and asset management services.
A new issue of Term Finance Certificate of Rs 500 million is also planned in the current year to meet the increased requirement of long-term matching funds for lease business.
Due to induction of experienced quality staff, payment of severance packages to the outgoing chief executive officer and the former advisor of the bank and selling up of new departments, administrative expenses increased.
These expenses also increased because of providing support for future business goals and to remain competitive and customer service oriented. The support is in the shape of selling up of new departments, and development of infrastructure and information technology. Two new branches were opened and head office was shifted to better location for good business prospects and accommodate additional staff.
It is emphasized in the report that efforts made during the last six months in organizing different departments, deployment of good human resources and booking of quality business will bring better results in the forthcoming half year.
Moreover, stream of revenues is anticipated from more active brokerage and investment banking operations.
As regards, the operating performance of the bank, on December 31, 2006 the net investment in lease finance amounted to Rs 3.931 billion as compared to Rs 3.898 billion posted six months earlier on June 30, 2006. This amount was net of Rs 113.8 million as income suspended and Rs 76.5 million as provision for potential lease losses. On December 31, 2006, had placed large fund of Rs 819.2 million in short term placements showing an active treasury departments of the bank. It also increased short-term investment portfolio of Rs 446 million for capital market operations.
In terms of revenue, leasing remained highest contributor although the revenue declined during the period under review. On the other hand income from investments portfolio was much higher compared to same period last year thus offset the impact of lower lease income. Net profit of the bank declined.

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Performance Statistics                       (Mln Rs)

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Balance Sheet ---As At---     December 31     June 30

                                     2006        2006

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Un-audited                                    Audited

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Share Capital Paid-up:             468.42      407.32

Reserves:                          470.91      566.79

Shareholders' Equity:              939.33      974.11

Surplus/(Deficit) on

 Revaluation of Investments:           -         4.32

L.T. Debts:                        794.90      975.11

L.T. Certificates of Investments:  524.82       24.81

L.T. Deposits:                     929.47      930.77

Deferred Taxation:                  20.04       15.04

Retirement Benefits:                 2.76        5.58

Current Liabilities:             2,784.86    3,231.84

Fixed Assets Tangible:              80.23       45.24

Intangible Assets:                  30.10       30.10

Net Investment in Lease Finance: 2,514.64    2,763.53

L.T. Finances:                      44.36       36.84

L.T. Investments:                    0.06        0.06

L.T. Deposits:                       3.30        2.67

Current Assets:                  3,323.49    3,283.14

Total Assets:                    5,996.18    6,161.58

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Profit & Loss A/c for Half Year Ended

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----December 31----                  2006        2005

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Revenue

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Income from Lease Operations:      177.34      243.88

Income on Investments:             149.21       79.87

Income for Brokerage:               12.16           -

Other Income:                       10.67       10.39

Total Income:                      349.38      334.14

Finance (Cost):                   (213.52)   (154.81)

Admin & Operating Expenses:        (74.32)    (35.81)

Depreciation:                       (5.55)     (2.99)

Lease Receivables Written Off:         -       (0.04)

(Expenditure):                    (293.39)   (193.65)

Operating Profit:                   55.99      140.49

(Provisions):                      (22.68)     (1.07)

Profit Before Taxation:             33.31      139.42

Profit After Taxation:              26.31      137.42

Earnings Per Share (Rs):             0.56        2.93

Share Price (Rs) on 25/06/2007:     36.75           -

Price/Earning Ratio:                65.62           -

Debt/Equity Ratio:                  46:54       50:50

Current Ratio:                       1.19        1.01

Lease/Total Income Ratio (%):       50.76       72.99

Net Profit/Total Income Ratio (%):   7.53       41.13

R.O.A. (%):                          0.44        2.23

R.O.E. (%):                          2.80       14.10

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