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| Bank
Al Habib Limited |
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| Annual
Report 1996 |
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|
| Contents |
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|
| Board
of Directors |
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|
2 |
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| Branch
Network |
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|
3 |
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| Notice
of Annual General Meeting |
4 |
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| Directors'
Report |
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5 |
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| Balance
Sheet |
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7 |
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| Profit
and Loss Account |
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13 |
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| Notes
to the Accounts |
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15 |
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| Auditors'
Report |
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17 |
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| Pattern
of Shareholdings |
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18 |
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| Board
of Directors |
|
|
| Chairman |
|
| Hamid
D. Habib |
|
|
| Chief
Executive & Managing Director |
|
| Abbas
D. Habib |
|
|
| Directors |
|
| Mohammad
Usman Kushtiwala* |
|
| Habib
Mohamed D. Habib |
|
| Ali
Raza D. Habib |
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| Faiz
N. Abdulali |
|
| Imran
Azim |
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| Asghar
D. Habib |
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| Anwar
Haji Karim |
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| Liaquat
H. Merchant |
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| Mehr
A. Bartas |
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| Qumail
R. Habib* |
|
| Murtaza
H. Habib |
|
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| *
Denotes Executive Director |
|
|
| Company
Secretary |
|
| Mahmood
S. Allarakhia |
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| Registered
Office and Head Office |
|
Principal Office |
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| 126-C,
Old Bahawalpur Road, |
|
Mackinnons Building, |
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| Multan. |
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|
1. I. Chundrigar Road,
Karachi. |
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| Phones:
(92-61) 580314-16, 544539 |
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Phones:(92-21)
2412986-89, 2417065-68 |
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| &
111-786-110 |
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|
& 111-786-110 |
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| Fax:
(92-61) 582471 |
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|
Fax: (92-21) 2419752 |
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| Telex:
42336 ALHML PK |
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|
Telex: 21285 ALFtAB PK |
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| Branch
Network |
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| Karachi |
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| Main
Branch |
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| Mackinnons
Building, I.I. Chundrigar Road. |
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| Phones:
(92-21) 2412986-89, 2417065-68 & |
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| &
111-786-110 |
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| Fax:
(92-21) 2419752, 2425423 & 2412028 |
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| Telex:
21286 ALHAB PK |
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|
| Shahrah-e-Faisal
Branch |
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| 20-A-1,
Block 6, P.E.C.H.S., Shahrah-e-Faisal. |
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| Phones:
(92-21) 4530140-42 |
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| Fax:
(92-21) 4530143 |
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| Gulshan-e-lqbal
Branch |
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| B-39,
AI-Shams Centre, Block 13-A, |
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| University
Road, Gulshan-e-lqbal. |
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| Phones:
(92-21) 4989161-63 |
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| Fax:
(92-21) 4989164 |
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| Zamzama
Branch |
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| 16-C,
Commercial Lane 3, |
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| Phase
V, Zamzama Boulevard, |
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| Defence
Housing Authority. |
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| Phones
: (92-21) 5863986, 5861804, 5861863 |
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| & 5861407 |
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| Fax
: (92-21) 5863914 |
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| S.I.T.E.
Branch |
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| B/76,
S.S. Chambers, S.I.T.E. |
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| Phones : (92-21)
2571710-11 & 2571521 |
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| Fax
: (92-21) 2571522 |
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| Bahadurabad
Branch |
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| Central
Commercial Area, B.C.H.S., |
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| Bahadurabad. |
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| Phones
:(92-21) 4915803-5 |
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| Fax
: (92-21) 4915802 |
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| Quetta |
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| Mannan
Chowk, M.A. Jinnah Road. |
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| Phones:
(92-81) 844125, 844131 |
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| &
111-786-110 |
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| Fax:
(92-81) 844125 |
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| Nawabshah |
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| Masjid
Road. |
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| Phones:
(92-241) 62738 & 62854 |
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| Fax:
(92-241) 62737 |
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| Lahore |
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| Main
Branch |
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| 87,
Shahrah-e-Quaid-e-Azam. |
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| Phones:
(92-42) 6305042-46 & 111-786-110 |
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| Fax:
(92-42) 6368864 |
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| Telex:
44610 BAHLR PK |
|
|
| Garden
Town Branch |
|
| Awami
Complex, 1-4 Usman Block, |
|
| Front
Block V, New Garden Town. |
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| Phones:
(92-42) 5869365-69 |
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| Fax:
(92-42) 5869370 |
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|
| Gulberg
Branch |
|
| 3-E,
Block E, Ground Floor, |
|
| Main
Market, Gulberg II. |
|
| Phones:
(92-42) 5762502 & 5754586 |
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| Fax
· (92-42) 5762501 |
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|
| Multan |
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| 126-C,
Old Bahawalpur Road. |
|
| Phones:
(92-61) 544539, |
|
| 580314-16
& 111-786-110 |
|
| Fax:
(92-61) 582471 |
|
| Telex:
42336 ALHML PK |
|
|
| Faisalabad |
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| Bank
Square, Outside Kutchery Bazar. |
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| Phones:
(92-411) 637301-3 & 111-786-110 |
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| Fax:
(92-411) 614266 |
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| Telex:
43528 ALHAB PK |
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| Sialkot |
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|
|
| Paris
Road. |
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| Phones:
(92-432) 592747, |
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| 86055
& 111-786-110 |
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| Fax:
(92-432) 592747. Telex: 46426 ALHAB PK |
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|
| Peshawar |
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| 105-106,
F.C. Trust Building, |
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| Sonehri
Masjid Road. |
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| Phones
: (92-521) 279814, 279856, |
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| 279859
& 111-786-I 10 |
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| Fax:
(92-521) 279861 |
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| Islamabad |
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|
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| 90-91,
Razia Sharff Plaza, |
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| Jinnah
Avenue, Blue Area. |
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| Phones:
(92-51) 270881-4, 277928 & |
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| 111-786-110 |
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| Fax:
(92-51) 270885 |
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| Telex:
54726 BAHID PK |
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| Rawalpindi |
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|
|
| M-101-A,
Midjac House, Bank Road, |
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| Rawalpindi
Cantt. |
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| Phones:
(92-51) 519936-38 |
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| Fax:
(92-51) 519939 |
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| Mirpur
(Azad Kashmir) |
|
|
| 82-A/B,
Allama Iqbal Road, Sector B-4. |
|
| Phone:
(92-58) 24726 |
|
|
| Fax:
(92-58) 24766 |
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|
| Dinga |
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|
| Opp.
Civil Hospital. |
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| Phone:
(92-43317) 2737 |
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| Fax:
(92-43317) 2737 |
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|
| Gujrat |
|
|
|
| Ground
Floor, Soufi Hotel, G.T. Road. |
|
| Phones:(92-4331)
525623, 525624, |
|
| 525627
& 111-786-110 |
|
|
| Fax
: (92-4331) 525628 |
|
|
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|
|
| Sahiwal |
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|
|
| 271,
Block-2, |
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|
|
| High
Street (Jinnah Road). |
|
|
| Phones:
(92-441) 66021 & 67021 |
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| Fax:
(92-441) 66021 |
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| Sheikhupura |
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|
| B-IX-64-95/A, |
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|
| Sarghoda
Road. |
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|
|
| Near
Sharif Plaza. |
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| Phones:
(92-4931) 612906 & 111-786-1 |
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| Fax:
(92-4931) 612877 |
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|
|
| Notice of Annual General
Meeting |
|
|
| Notice
is hereby given that the Sixth Annual General Meeting of Bank AL Habib
Limited will be held at the |
|
| Registered
Office of the Company located at 126-C, Old Bahawalpur Road, Multan, on
Wednesday, March |
|
| 12,
1997, at 12:30 p.m., to transact the following business: |
|
|
| 1.
To receive and adopt the audited Accounts of the Bank for the year ended
December 31, 1996, |
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| together
with the Directors' and Auditors' Reports thereon. |
|
|
| 2.
To approve payment of cash dividend @ 15% i.e. Rs. 1.50 per share of Rs. 10
each for the year ended |
|
| December
31, 1996 as recommended by the Directors. |
|
|
| 3.
To approve the issue of bonus shares as recommended by the Directors and in
this regard to pass the |
|
| following
Ordinary Resolutions: |
|
|
| "RESOLVED
that a sum of Rs. 30,000,000 (Rupees thirty million only) out of current
year's profit be |
|
| capitalized
and distributed by issuing 3,000,000 fully paid ordinary shares of Rs 10 each
as bonus |
|
| shares
in the proportion of one share for every ten shares held, to those members
whose names appear |
|
| in
the register of members on March 12, 1997 and that the shares so distributed
shall be treated for |
|
| all
purposes as an increase in the paid-up capital of the Company. |
|
|
| FURTHER
RESOLVED that the bonus shares so distributed shall rank pari passu in all
respects with |
|
| the
existing shares of the Company except that they shall not qualify for
dividend for the year ended |
|
| December
31, 1996. |
|
|
|
|
| FURTHER
RESOLVED that in the event of any member holding shares which are not an
exact multiple |
|
| of
ten, the Directors be and are hereby authorized to sell in the stock market
such fractional entitlement |
|
| and
to pay the proceeds of sale when realized to a charitable institution. |
|
|
|
|
| FURTHER
RESOLVED that the Directors be and are hereby authorized and empowered to
give effect |
|
| to
this resolution and to do or cause to be done all acts, deeds and things that
may be necessary or |
|
| required
for the issue, allotment and distribution of 3,000,000 shares." |
|
|
| 4.
To appoint Auditors for the year 1997 and to fix their remuneration. Messrs
Hyder Bhimji & Company, |
|
| Chartered
Accountants, being eligible offer themselves for reappointment. |
|
|
| 5.
To consider any other business of the Company with the permission of the
Chair. |
|
|
| By
order of the Board |
|
|
| Notes: |
|
| 1.
A member entitled to attend and vote at this meeting is entitled to appoint a
proxy to attend and vote |
|
| on
his/her behalf. A proxy must be a member of the Company. Proxy forms in order
to be effective |
|
| must
be received at the Registered Office of the Company duly stamped and signed
not less than 48 |
|
| hours
before the meeting. |
|
|
|
|
| 2.
The share transfer books of the Company will remain closed from Wednesday,
February 26, 1997, to |
|
| Wednesday,
March 12, 1997, both days inclusive. |
|
|
|
|
| 3.
Members are requested to promptly communicate to the Company any change in
their address. |
|
|
|
| Directors'
Report |
|
| The
Board of Directors is pleased to present to you the Annual Report of the Bank
for the year ended |
|
| December
31, 1996. |
|
|
| The
operating results and appropriations as recommended by the Board of Directors
are as follows: |
|
|
|
|
|
Rupees |
|
|
| Profit
for the year before taxation |
|
343,435,079 |
|
| Taxation |
|
|
(188,000,000) |
|
|
----------- |
|
|
|
|
155,435,079 |
|
| Donations |
|
|
|
(2,475,000) |
|
|
----------- |
|
| Profit
for the year after Tax |
|
|
152,960,079 |
|
| Unappropriated
Profit brought forward |
|
|
5,515,189 |
|
|
----------- |
|
| Profit
available for Appropriation |
|
|
158,475,268 |
|
|
|
|
|
|
| Appropriations: |
|
|
|
| Transfer
to Reserve Fund |
|
|
|
69,000,000 |
|
| Transfer
to Special Reserve |
|
|
|
14,000,000 |
|
| Proposed
- Fully paid Bonus Shares |
|
| in
the ratio of 10 Ordinary |
|
|
| Shares
for every |
|
|
|
| 100
shares held |
|
|
|
30,000,000 |
|
| -
Cash Dividend @ 15% |
|
| i.e.
Rs. 1.50 per share |
|
|
| of
Rs. 10 each |
|
|
|
45,000,000 |
|
|
----------- |
|
|
|
(158,000,000 ) |
|
|
|
|
----------- |
|
| Unappropriated
Profit carried forward |
|
475,268 |
|
|
=========== |
|
|
|
| Performance
Review |
|
| By
the Grace of Allah, the Bank has continued to maintain satisfactory growth in
all areas of its operations |
|
| as
indicated below: |
|
|
|
|
(Rs. in Millions) |
|
|
|
|
|
Dec. 31, 1996 |
|
Dec. 31, 1995 |
|
Increase over 1995 |
|
|
|
|
|
|
|
Amount |
|
Amount |
|
Amount |
% |
|
|
|
|
| Pre-Tax
Profit |
|
343.40 |
|
257.30 |
|
86.10 |
33.40 |
|
| Post-Tax
Profit |
|
152.90 |
|
127.40 |
|
25.50 |
20.00 |
|
| Capital
and Reserves |
718.00 |
|
605.00 |
|
113.00 |
18.60 |
|
| Total
Customers' Deposits |
8,572.50 |
|
6,353.40 |
|
2,219.10 |
34.90 |
|
| Total
Advances |
|
5,663.70 |
|
4,253.60 |
|
1,410.10 |
33.10 |
|
| Foreign
Trade Business |
17,320.30 |
|
12,868.00 |
|
4,452.30 |
34.60 |
|
|
|
|
|
|
|
|
|
|
| The
Bank's policy continues to be to safeguard the interests of depositors,
formulate prudent lending |
|
| policies,
steadily consolidate the capital base and to provide best possible services
to our customers. |
|
|
| During
the year under review, deposits have increased by Rs. 2,219.1 Million i.e. by
34.9% while total |
|
| advances
have increased by Rs. 1,410.1 Million i.e. 33.1% as compared to the previous
year. The Bank |
|
| continues
to follow a prudent credit policy with emphasis on short term trade related
lending. |
|
|
| Overall
Foreign Trade business handled by the Bank during the year was Rs. 17,320.3
Million as compared |
|
| to
Rs. 12,868.0 Million in 1995. |
|
|
| Inshallah,
we are hopeful that the Bank will continue to maintain a steady growth in
1997. |
|
|
| Branch
Network |
|
| During
the year, two new branches were added, bringing the total number of branches
to 22. All these |
|
| branches
are fully automated and providing full range of banking services. |
|
|
|
| Directors |
|
| The
following changes have taken place on the Board of Directors since the last
report: |
|
|
| Mr.
Mansoor G. Habib, resigned with effect from July 8, 1996 from the Board of
Directors of the Company. |
|
| The
Board while accepting the resignation with regret, acknowledges the services
rendered by him as a |
|
| Director
with the Bank. |
|
|
| To
fill up the casual vacancy which occurred among the directors due to the
resignation of |
|
| Mr.
Martsocr G. Habib, Mr. Mehr A. Barias, an eminent banker who has over 40
years of banking |
|
| experience,
was appointed as Director of the Bank. |
|
|
|
| Pattern
of Shareholdings |
|
| The
statement of pattern of shareholdings of the Bank as at December 31, 1996, is
shown on page 18. |
|
|
|
| Auditors |
|
| Our
present auditors, Messrs Hyder Bhimji & Company, Chartered Accountants,
retire and being eligible, |
|
| offer
themselves for reappointment. |
|
|
|
| General |
|
| We
are grateful to our customers for their support, to the State Bank of
Pakistan for their continued guidance |
| and
to our foreign and local correspondent banks for their valuable services. We
also thank all our staff |
|
| members
for their sincere and dedicated services, which enabled the Bank to achieve
these results. |
|
|
| On
Behalf of the Board of Directors |
|
| HAMID
D. HABIB |
|
| Chairman |
|
|
|
| Karachi:
January 25,1997. |
|
|
|
| Balance
Sheet as at December 31, 1996 |
|
|
Rupees |
|
|
|
1996 |
1995 |
|
|
| CAPITAL
AND LIABILITIES |
|
|
| Authorized
Capital |
|
| 60,000,000
Ordinary Shares of Rs. 10 each |
|
600,000,000 |
600,000,000 |
|
|
|
|
| Issued,
Subscribed and Paid-up Capital |
|
| 30,000,000
Ordinary Shares of Rs. 10 each |
|
| issued
for cash |
|
|
300,000,000 |
300,000,000 |
|
|
|
|
| Reserve
Fund and other Reserves |
|
|
418,000,000 |
305,000,000 |
|
|
|
|
|
|
|
| Deposits
and other Accounts |
|
|
| Fixed
Deposits |
|
|
3,973,587,917 |
2,866,811,326 |
|
| Saving
Deposits |
|
|
3,311,429,265 |
2,273,847,225 |
|
| Current
Accounts, Contingency Accounts, etc. |
|
1,287,507,718 |
1,212,693,664 |
|
|
|
|
|
|
|
8,572,524,900 |
6,353,352,215 |
|
|
| Borrowings
from other Banks, Agents, etc. |
|
| InPakistan |
|
|
|
1,269,067,000 |
989,066,000 |
|
| Outside
Pakistan |
|
|
- |
- |
|
|
------------- |
------------- |
|
|
|
|
1,269,067,000 |
989,066,000 |
|
|
|
|
|
|
| Particulars
of above: |
|
| Secured
against Export Refinance Facilities obtained |
|
| from
the State Bank of Pakistan |
|
|
1,269,067,000 |
989,066,000 |
|
|
| Unsecured |
|
|
|
|
- |
- |
|
|
| CARRIED
FORWARD |
|
|
10,559,591,900 |
7,947,418,215 |
|
|
|
| PROPERTY
AND ASSETS |
|
|
| Cash |
|
| On
hand and with State Bank of Pakistan |
|
| and National Bank
of Pakistan (including foreign |
|
|
| currency
notes) |
|
|
2,117,051,052 |
1,783,180,618 |
|
|
|
|
|
| Balances
with other Banks |
|
|
| In
Pakistan - on current account |
|
9,684,602 |
6,489,175 |
|
| Outside
Pakistan - on current account |
|
32,108,891 |
221,757,475 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
41,793,493 |
228,246,650 |
|
|
|
|
|
|
| Money
at Call and Short Notice |
|
300,000,000 |
200,000,000 |
|
|
|
|
|
|
| Investments
at Cost |
|
|
| (i)
Securities of the Federal and Provincial Governments |
959,607,296 |
1,084,900,850 |
|
| (ii)
Federal Government Treasury Bills/Short Term Federal Bonds |
1,494,000,000 |
890,628,786 |
|
| (iii)
Fully paid Ordinary Shares |
|
- |
47,720,000 |
|
| (iv)
Other Investments |
|
|
35,461,017 |
32,059,198 |
|
|
|
|
-------------- |
-------------- |
|
| (Market
value of investments Rs. 2,608,231,364 - |
|
| 1995:
Rs. 2,047,506,672) |
|
|
2,489,068,313 |
2,055,308,834 |
|
|
|
|
|
|
| Advances |
|
| (Other
than bad and doubtful debts for which provision |
|
| has
been made to the satisfaction of the auditors) |
|
|
| (i)
Loans, Cash Credits, Overdrafts, etc. |
|
| In
Pakistan |
|
4,733,942,545 |
3,364,859,897 |
|
| Outside
Pakistan |
|
|
|
- |
- |
|
|
-------------- |
-------------- |
|
|
|
|
4,733,942,545 |
3,364,859,897 |
|
|
|
|
| (ii) |
Bills Discounted and
Purchased |
|
| Payable
in Pakistan |
|
|
45,944,587 |
18,951,985 |
|
| Payable
outside Pakistan |
|
|
883,834,558 |
869,823,807 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
929,779,145 |
888,775,792 |
|
|
|
|
|
|
|
|
|
-------------- |
-------------- |
|
|
|
|
5,663,721,690 |
4,253,635,689 |
|
|
|
|
| CARRIED
FORWARD |
|
|
10,611,634,548 |
8,520,371,791 |
|
|
| CAPITAL
AND LIABILITIES |
|
| BROUGHT
FORWARD |
|
|
|
10,559,591,900 |
7,947,418,215 |
|
| Bills
Payable |
|
|
|
190,660,439 |
534,151,901 |
|
|
|
|
|
|
|
|
| Bills
for Collection being Bills Receivable as per contra |
|
| Payable
in Pakistan |
|
|
102,239,151 |
40,456,269 |
|
| Payable
Outside Pakistan |
|
|
1,556,543,465 |
1,032,036,472 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
1,658,782,616 |
1,072,492,741 |
|
|
| Other
Liabilities |
|
| Provision
for Taxation |
|
|
188,000,000 |
127,714,586 |
|
| Proposed
Dividend |
|
|
|
45,000,000 |
45,000,000 |
|
| Fund
Management Liabilities |
|
|
166,413,825 |
157,196,967 |
|
| Others
(including inter-branch adjustment of Rs. 227,310 - |
|
|
| 1995:
Rs. 187,677) |
|
|
|
249,042,487 |
170,188,014 |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
648,456,312 |
500,099,567 |
|
|
|
|
|
|
| Acceptances,Endorsements
& other Obligations as per contra |
1,658,226,127 |
1,334,958,732 |
|
|
|
|
|
|
|
| Profit
and Loss |
|
|
|
|
|
| Profit
for the Year before Tax |
|
|
343,435,079 |
257,391,234 |
|
| Less:
Taxation |
|
|
(188,000,000) |
(127,770,044) |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
155,435,079 |
129,621,190 |
|
| Less:
Donations |
|
|
(2,475,000) |
(2,175,000) |
|
|
|
|
-------------- |
-------------- |
|
|
|
|
152,960,079 |
127,446,190 |
|
| Add:
Unappropriated Profit brought forward |
|
5,515,189 |
68,999 |
|
|
|
|
-------------- |
-------------- |
|
| Profit
Available for Appropriation |
|
|
158,475,268 |
127,515,189 |
|
|
|
|
|
|
|
|
| Appropriations: |
|
|
|
|
|
