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E-paper Profit 26th March, 2013
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01
BUSINESS
BTuesday, 26 March, 2013
Chinese business groups should explore the northern
areas of Pakistan. – Ambassador Masood Khalid
UmAR LAtIf
Performance, profit and its distribution bythe National Bank of Pakistan, for its 64thyear ended December 30, 2012, gives apleasant surprise to all interested in worksheet of the banking sector. No doubt, thisvital financial sector has been sailing instormy waters since long time past. Extendedeconomic turmoil, for several cogent reasonsof it, external threats and internal uncertain-ties, tend to make the financial sector percep-tibly vulnerable. Policy portrait for thissector has been in flux for want of pragmaticmonetary management policy and pursuits.In this surrounding, all the banks have beenhit, some more others by collateral impact.None is saved from, big five banks gettingbruise, not bright horizons. In this complexsituation, not supportive in surge, top to bot-tom lines, reviewed with care, in backdropof the ground realities influencing generaloutcome, National Bank of Pakistan carriesthe flag of reasonable success. This refers tooverall competitive thrust possessed per-fectly by it.
In Pakistan, during the fiscal year 2012,38 banks were functional, of course a largenumber, keeping in view the size of econ-omy and squeeze on it over the decades, de-noting decline due to the country being frontline state in perplexing war flare in the neigh-boring country of Afghanistan. Unsettledoverall conditions made inroads over theeconomic situation. Banks survival andthrive depend primarily on peace time eco-nomics, offer opportunities to utilize fundseffectively, efficiently. Such a supportive sit-uation has not been a reality in our milieusince long time, at least for about twodecades at a stretch. The performance pa-rameters of the NBP underline material suc-cess, by measures of increase in earning and
lacing it with creamy reward to the share-holders. It writes a story of success and fig-ures make a milestone, on being material andrealistic measure of success. That is the storyof the NBP, about its latest operating out-come, for the Year 2012. NBP is one of thefive public sector commercial banks andamong them it is in the lead position havingover 1285 branches, of the aggregate of thepublic sector being 1748 branches network.Within the 38 banks in all, it is second inbranch strength. So, it is fairly wide spread,strategic as it can be assessed by its latestperformance results. This leaves little doubtabout having pragmatic policy portrait andpositive pursuits, a happy hallmark.
Being one of the biggest banks, both op-portunities and problems tend to be of highpole bar to cross, to put proverbially. In thesituation prevalent for too long time to af-ford, results reflect and so do retain refresh-ing test, not scratching confidence, butsolidifying it.
NBP has one more recognizable hat inwear. It has been its ranking among the bigfive banks of Pakistan. Core business of thecommercial banks, is business and industrialfinancing. It has not been on the rise but backfoot. This has been evident from nominal sixpercent sparks to Rs. 88.30 billion. In com-parison with the year 2011 rolling in profitwas increased by 20 percent, the latest yearpresented an overall retreat. However, pretaxprofit of the leading group of five banks in-creased by a token of two percent. Lower thebusiness load, lower was the stress of (mak-ing) provision on non-performing loans. Thisdid absorb increase, a routine, in administra-tive expenses. This tends to be the com-pelling factor for the banks, like any otherbusiness, to strive for absorbing increasingthis year or year stress and have more in kittyfor the stake-holders, have and equitable and
reasonable claims.As many as 22 private sector banks, five
fighting fit; seven foreign banks floating newschemes to attract borrowers for business in-crease, and four specialized banks have beena challenge, more so for the public sectorbanks, not usually preferred by micro andmacro-economic activities more vividly andexpanded too in the private sector to haveclientage coordination with this sector. Al-ternatively, with constraint to concentrate onthe public sector projects posed more prob-lems. as major among them have been onsick list for long time and were simply swal-lowing good money in fresh lending, chasingthe bad money. In this tight situation, work-ing by the NBP, being the major source oflending to state enterprises, turnout to be atough choice in time measure and in it tosteer out of trouble is indeed a planned and
poised portrait of dealing business as busi-ness. Of course, banks business, as its traitfeature points out, is business and it seemsto have been secured, as a well groomed andguarded effort, in line of success achieved.
Of course, sailing in stormy surroundedsituation and get to safe soil is a task Her-culean. The NBP management during thecourse of the year, with pragmatic imagina-tion, evolved and introduced two newschemes. The one has been to provide loansagainst collateral of gold and get the same onretirement of debt. This means to have ac-cess to funds and at the same time have owngold well secured, safe. Gold prices have ingeneral been on rising scale and the interestrate has been reduced by 2.50 percent duringthe review year and about five percent in thepast two years, it has become a good gain forborrowers against gold placement. Thisscheme seems to have given grand relief tothe borrowers in need, at the same time NBPto utilize its funds in remarkable social serv-ice, while the business was on the backtrackin borrowings from the banks for its opera-tions, being on decline due to hugely adverseeconomic, social and political conditions,continuously on desperate decline, giving di-minishing returns for the business and so thebanks.
Another interesting, imaginative schemefloated by the bank has been to provide pub-lic servants withfacility to borrow againsttheir salaries, in time of hardship. The NBParranged security of its funds with the gov-ernment by access to repayment as to sched-ule. This carried triple benefits, one thegovernment relieved to arrange extra fund-ing for temporary extra lending to its person-nel in hardship but have a source to dependfor timely support and have honor protectedfrom seeking support from others, difficultto get it in grinding giving situation and the
NBP utilizing its surplus funds in social serv-ice with steady, secured return on it. Both theschemes have proved their worth in eco-nomic plus social good, a service to admireand the competitors to have envy of it.
The end-result of it has been salutary ineffect, for the government, the major stake-holder and the shareholders from the public,in the NBP as investment outlet. The bankhas come out with lucrative cash dividendpayment, at Rupees seven per 10-rupeeshare, which works out hefty 70 percent, re-ally rewarding. It is further laced with 15 percent stock dividend, in other words bonusshares. Its 10-rupee face value share beingquoted in five multiple ensuring premium,the aggregate return becomes exceptionallygood, more particularly in the fold of thepublic sector enterprise, in the gory situationstarkly dark when key units in this sectorwere losing money, wasting resources mer-cilessly. Very attractive dividend by the NBPis not going to impair its financial strength,though the dividend payout forms hefty97.20 percent of the after-tax earnings. Thegovernment being the major stakeholder, itsdividend to be retained as part of the recov-ery of the loans extended, it will providefunds. Likewise, 15 percent stock dividendwill also retain cash resources. This meanscash payout will be seventy percent of thesurplus and sizeable re-input would be inform of repayment of debts taken by the gov-ernment and its protégés.
So, in nutshell, a concluding comment,it is the note of satisfaction that the NBP shallremain in fine float and the management’sfirm act of liberal dividend payout reflectsits confidence, courage, devotion etc. to re-main on track of fine float, find gratifyingschemes with vision and vitality to follow infirm, if not fantastic flavor. Have happy timewith the NBP.
Lively performance of National Bank of Pakistan
DR ASIF A BROhI
KARACHI
ISMAIL DILAWAR
THE political economyis taking its toll on thecountry’s equitymarket where therisk-averse investorsare playing cau-
tiously to avoid a possible investmentdisaster arising out of the maidendemocratic transition unfolding re-newed fears and concerns with eachpassing day.
Monday, first working day of theweek, saw the benchmark KSE 100-share index climbing beyond the18,000 points psychological level andthen nose-diving to a negative close.
The day, which marked the oath-taking of the hard-selected caretakerPrime Minister Mir Hazar KhanKhoso, witnessed the index shedding1.21 points to close at 17,961.91points against 17,963.12 points ofFriday last week.
Also, the trading volume at theready-counter was recorded lower,shrinking by 7.578 million shares to153.669 million compared to 161.247million of last trading session. Thescrips traded devalued and reduced toRs 4.847 billion as against Rs 6.034billion last week. Of the total 318scrips traded 133 appreciated, 155 de-preciated while 30 remained un-changed.
The market capitalization re-mained almost flat at Rs 4.385 tril-lion.
“The initial enthusiasm proved tobe short lived,” said the market ana-lysts at Arif Habib Securities.
The investors’ participation re-mained modest with total volumestanding at 153.6 million, they added.While the analysts dubbed them“penny stocks”, the PIA, LottePakPTA and TRG Pakistan dominatedand appeared as volume leaders of theday. All the three stocks price belowRs 8.
Citing reasons the market ob-servers kept politics, oath-taking ofthe interim premier, on the top. “Withinterim PM taking charge the in-vestors would be keenly looking to-wards elections,” they viewed.
There are some who assign purelyeconomic attributable factors to Mon-day’s upheaval on the volatile stocksmarket. Senior analysts like AhsenMehanti said the bullish and bearishtrading on the day was because of theinvestors’ concern for “economic un-certainty” in the electioneering coun-try.
However, the analyst saw consol-idation continued in some blue chipstocks ahead of the close of the fiscalquarter.
“(The) Activity was led by cementand telecom stocks on strong valua-tions,” added Mehanti, who also is adirector at Arif Habib Securities.
The investors’ concern for bank-ing sector minimum profit payouts onrupee savings deposits despite theglobal markets’ rally on Cyprusbailout deal with the EU was also acatalyst for the bearish sentiments atKSE.
Other analysts said the equity in-vestors were also watching closely atthe central bank for its new monetarypolicy for next couple of months as
well as the corporate results to be an-nounced by the end of third fiscalquarter on the 231st of this month.
“Expectations regarding (the) cor-porate (results) is still strong,” theyadded.
The stocks analysts, however,seem to have consensus on the pointthat any political event that improvesthe perception regarding improve-ment in politico-economic stability incountry would attract investors.
PoliTiCo-EConomiCConCERnS mARKET CloSE in ThE REd
KSE 100 INDEX PEAKEDBEYOND 18,000 POINTSIN EARLY SESSION The investors’
participation remained
modest with total
volume standing at
153.6 million. While
the analysts dubbed
them ‘penny stocks’,
PIA, Lotte Pak, PTA
and TRG Pakistan
dominated and
appeared as volume
leaders of the day
US planning American investors moot in Karachi: consul general
KARACHI: The US Consulate in Karachiis planning to organize and host an invest-ment conference in the city to which theAmerican investors would be invited to visitthe investment-hungry country. This wasstated by US Consul General Michael Dod-man during a meeting with Chairman SindhBoard of Investment (SBI) MuhammadZubair Motiwala here at the Board’ office.The consulate general also expressed the de-sire to organize an SBI delegation to visitUS. Dodman also ensured to play a vitalrole to speed up the USAID projects in theSindh province. Earlier, Chairman SBIMuhammad Zubair Motiwala said the Sindhgovernment needed the US support to over-come the energy shortage in Pakistan. Andthat, he said, the presence of the US in TharCoal Mining and Power Generation projectwould be much helpful for the energy-starved country. STAFF REPORT
KSE clears Bank Alfalah’sRs5bn TFCs for listing
KARACHI: The Karachi Stock Exchange(KSE) has approved application for the list-ing and quotation of the 5th issue of Rated,Listed, Unsecured and Subordinated TermFinance Certificates (TFCs) of Rs 5 billionof the Bank Alfalah Limited.The approval was granted to the bank aftercompletion of the formalities requiredunder the Listing Regulations of the Ex-change.Monday saw the Exchange notifying thattrading in the banks’ TFCs would start fromMarch 28 on the KSE. The transactionswould take place in the said TFCs throughBonds Automated Tracing System (BATS)and shall be settled on T+1 settlement basis.It said the TFCs had already been declaredas an eligible security by the Central De-pository Company of Pakistan (CDC) andall the transactions shall be settled throughthe National Clearing Company of PakistanLimited, which has assigned “BAFLTFC5”as a security symbol to the certificates.The Arlf Habib Limited has been appointedas market maker for the issue and wouldperform the role of market maker as dis-closed under Clause Number 2.24 of theProspectus. STAFF REPORT
Railways to execute 37 projectsworth Rs 22.8bISLAMABAD: Ministry of Railways willspend around Rs 22.8 billion to execute 37projects for rehabilitation of its infrastruc-ture and reinvigorating services in the cur-rent fiscal year, making the organization aprofit-earning entity. “During the currentfiscal year, the priority will be given to theprocurement of new locomotives as therailways is currently facing shortage ofaround 500 locomotives,” an official saidon Monday. He said an amount of Rs 6.1billion had been sanctioned as a commer-cial loan for repair of 96 locomotives,adding that planning commission had ap-proved three major schemes at a cost ofRs. 35 billion to support railways revival.The official said that Letter of Interest(LoI) had been issued for rehabilitation of27 locomotives and tenders for procure-ment of another 150 new locomotiveswere under evaluation. He said around 150locomotives were to be rehabilitated whileprocurement of 75 locomotives was inpipeline, adding that around 150 coacheswould be manufactured during the ongo-ing year. “Two new projects for doublingof track between Lahore-Faisalabad andLahore-Lalamusa will be launched in2012-13.” He said a `Project ManagementUnit’ was also being established in theministry that would help execute differentprojects in a smooth manner, avoiding anyprocedural delays. “Two dry ports will beset up at Prem Nagar and at Shershah Rail-way Station for which Rs 494 million andRs 485 million had been allocated respec-tively,” he added. He said the available lo-comotives had an average age of 33 years,while in rest of the world this was about20 years. More than 55 per cent track isoverage, 70 per cent of freight wagons areof low-capacity and 86 per cent of bridgesare more than 100 years old, he said. APP
16-17 Business Pages (26-03-2013)_Layout 1 3/26/2013 3:30 AM Page 1
BUSINESSTuesday, 26 March, 2013
Major Gainers
COMPANY OPEN HIGH LOW CLOSE CHANGE TURNOVERUniLever Pak 10800.00 10910.00 10910.00 10910.00 110.00 20Indus Dyeing 437.00 456.00 456.00 456.00 19.00 100Philip Morris Pak. 283.01 297.16 280.15 297.16 14.15 54,400Packages Ltd. 186.10 195.39 184.50 193.30 7.20 71,500Murree Brewery 155.00 161.50 160.00 160.00 5.00 12,500
Major LosersSunrays Textile 263.25 250.10 250.10 250.10 -13.15 500Exide (PAK) 361.19 355.00 350.00 350.00 -11.19 300MithchellsFruit 312.50 311.00 305.00 305.00 -7.50 300Adamjee Ins. 69.87 68.85 66.55 66.93 -2.94 1,861,000Tri-Pack Films 179.83 180.00 176.51 177.00 -2.83 7,100
Volume Leaders
P.I.A.C.(A) 6.68 6.89 6.40 6.82 0.14 21,229,000Lotte PakPTA 7.45 7.64 7.25 7.30 -0.15 14,382,000TRG Pakistan Ltd. 7.46 7.93 7.50 7.81 0.35 11,618,000Engro Corporation 129.32 132.90 130.30 130.88 1.56 10,166,700Maple Leaf Cement 18.10 18.44 17.40 17.54 -0.56 9,675,500
Interbank RatesUSD PKR 98.3208GBP PKR 149.6934JPY PKR 1.0371EURO PKR 127.9252
ForexBUY SELL
US Dollar 99.20 99.45 Euro 126.40 126.63 Great Britain Pound 148.70 148.94 Japanese Yen 1.0335 1.0443 Canadian Dollar 95.44 97.14 Hong Kong Dollar 12.46 12.72 UAE Dirham 26.75 27.00 Saudi Riyal 26.30 26.48
KARACHI: The Ambassador of Italy Adriano
Chiodi Cianfarani shakes hands with Qaseen
Jafri, Country Head of DS Concept, at Farooqui
House reception. PR
Pakistan’s oil, gas sectormakes 10 discoveriesKARACHI: Following a lacklustre period of several
years, when things remained quite on the oil and
gas exploration sector ofPakistan, the oil and gas
fields have started to buzz with activity. In the
current financial year-to-date (July 1, 2012 to
March 11, 2013) the country’s oil and gas sector
has spudded as many as 56 wells. It represents a
big leap over the 31 wells drilled in the same period
last year. The sector has drilled 20 new exploratory
wells as against 12 wells same time last year,
depicting a significant increase of 67 per cent. On
the discovery side, the picture was a lot brighter
than the earlier years as a total of 10 discoveries
have been made by the sector in FY13 so far. The
sector’s drilling of a total of 56 exploratory and
development (E and D) wells during the period also
represents achieving 61 per cent of the full year
target set at 91 wells. Even in that sphere, the
sector fared better than the comparable period last
year when only 41 per cent of the target 76 wells
could be drilled. “O and G sector’s focus continues
to remain on the development wells”, says Nauman
Khan, analyst at Topline Securities. Of the total
wells drilled, 36 were development wells
(representing 64 per cent of total activity). It
reflected improvement over 19 wells or 61pc of
total wells drilled in the comparable period last year.
City School observesPakistan dayLAHORE: In connection with the celebrations on
“35 Years of the Partnership with the Parents” in
The City Schooland Pakistan Day, 23rd March 2013
is designed around the theme ‘I AM PAKISTAN’. It
offers much food for thought for each and every
individual to refresh and rejuvenate the spirit of
patriotism to live and love Pakistan as ‘I AM
PAKISTAN’. Miracles happen and March 23, 1940,
was one such day when the efforts of the Muslim
leaders and thinkers materialised in the form of a
miracle known as the Pakistan Resolution.
The period between March 23, 1940 and August
14, 1947 can play an integral part in helping
Pakistanis realize the importance of certain ideas in
life; whether it’s the life of an individual or of an
entire nation. To understand all of this, just reading
about the steps that the Quaid-i-Azam Muhammad
Ali Jinnah took during these seven vital years can
be sufficient enough. It becomes obligatory on us
to think on why our youth have become so
indifferent to everything, whether from the past or
the present that had once been a source of national
pride. Why are they so eager to celebrate every
new festival made available to them whether it’s
Basant or Valentine, Holi or Halloween? PR
haier Pakistan
marks Earth hour
KARACHI: Once again Haier has stepped forward
to inspire their dealers, suppliers, employees and
millions of consumers in Pakistan by marking Earth
Hour in a fitting manner. On 23rd March Haier
Pakistan switched off most of the lights in all their
installations including offices and industrial parks for
one whole hour from 20.30 to 21.30 PST. Says Hair
Pakistan CEO Mr. Song, “Haier’s moto ‘ Eco Life,
Smarter Living, Better Planet’ is right in line with
the goals of Earth Hour mass movement. The earth
is our only habitat and Haier strives to preserve and
protect the world environment by designing
environment friendly products which enhance and
enrich the lives of it consumers”. Earth Hour was
marked in 7,000 cities in 152 countries across the
world as people expressed their solidarity for
protecting the earth against climate change. PR
Bata launches footwearfashion show
LAHORE: On
the evening of
23rd of March,
Bata launched
Pakistan’s first
ever full-
fledged
footwear
fashion show
at Shahi
Khema, Pearl
Continental
Hotel Lahore.
Titled as ‘The
Showcase’, the
show was
attended by
300 guests
including
celebrities
from showbiz
and sports,
known figures
from the
corporate
world, and
famous
socialites the
show will be remembered by all the participants
for a long time for all the good reasons. The
guests were warmly greeted at the red carpet
by the ever so fabulous Natasha Hussain in her
peculiarly informal yet mannered style. From
the red carpet the guests entered The Bata
Gallery where Bata’ bands and products were
beautifully displayed in a highly innovative
environment, giving a glimpse into each brand.
The arena was quite a masterpiece for its
ambience, and modern yet graceful feel
befitting the occasion. The refreshments that
were served were really refreshing for their
quality, taste and presentation. The show
started with the MC Faizan Haq’s
characteristically skilful presentation of the
brand Bata and its history. Following this,
accomplished and upcoming models strutted the
ramp showcasing Bata’s footwear collection
including Ambassador, Marie Claire,
Bubblegummers, Power, North Star, Leena,
Comfit, and Weinbrenner. The ramp, the
choreography and the environment all stayed in
sync to make this a wonderful presentation. The
vintage bike and the background score added to
the verve on the ramp. ‘Great show! It was
really fun and exciting to be here to see what
Bata is doing and it’s fabulous’ said one of the
guests. ‘Simply fantastic, I liked the Bata
Gallery!’ said another. PR
habib University: Engaging
students the right way!
KARACHI: Habib University kick started the first
quarter of 2013 with numerous exciting workshops
at O’ and A’ levels and Intermediate schools in
Karachi. The sessions are an unorthodox twist on
university information programs with fun filled
thematic activities. Each workshop entails student –
centric, engaging presentations highlighting certain
skills -creativity, teambuilding effective
communication, leadership, and so on - that will
help students in their transition from high school to
a university. The workshops are also a great way to
acclimatize potential students with Habib
University’s philosophy, academic offerings,
international faculty, state-of-the-art campus
facilities and a potentially vibrant student life. PR
Exhibition of islamic Art,Calligraphy and woodcarvings by Ruheena malik
KARACHI: The Quaid e Azam House Museum,
located on Fatima Jinnah Road, Near Avari
Towers, recently hosted a fascinating exhibition
of calligraphy on Friday the 22nd March, 2013.
The exhibition featured treasures of Islamic art
and three-dimensional wood carvings, created by
the prominent artist and calligrapher Ruheena
Malik. Winner of a “Pride of performance” award
- Ruheena Malik’s work is inspired by the
immortal expression of Allah (SWT) which
comprises of the exquisite creativity reflected all
across the cosmic expanse of this universe. Her
expression is based on a firm belief in the
Almighty’s power to create. PR
CORPORATE CORNER
02
B
Germany will increase investment in Pakistan.
– German Ambassador Cyrill Jean Nunn
Service sponsors hum AwardsKARACHI: Service Sales Corporation (SSC), Pakistan’s leading retailer and Hum
Network staged the Servis 1st Hum Awards to honor excellence and to celebrate
all those who have been a part of the eight-year long journey of Hum TV. The
show was attended by a packed audience including artists, socialites, students
and people from the corporate circle in Karachi. SSC believes that this initiative
will go a long way in promoting our talent, our artists and our industry. PR
KARACHI: The team of Service Sales Corporation at the Red Carpet of Servis 1st Hum Awards. PR
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