Professional Documents
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INTERNATIONAL BANK
Pakistan
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Submitted By:
Bilal Yasir
+92345-8703330
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
The Standard Bank was founded in the Cape Province of South Africa in 1862 by
John Paterson. It was a commenced business in Port Elizabeth, in January 1863.
It was prominent in financing the development of the diamond fields of
Kimberley from 1867 and later extended its network further north to the new
town of Johannesburg when gold was discovered there in 1885. It expanded in
Southern, Central and Eastern Africa and, by 1953, had 600 offices. In 1965, it
merged with the Bank of West Africa, expanding its operations into Cameroon,
Gambia, Ghana, Nigeria and Sierra Leone.
From the early 1990s, Standard Chartered has focused on developing its strong
franchises in Asia, Africa and the Middle East. It has concentrated on consumer,
corporate and institutional banking and on the provision of treasury services -
areas in which the Group had particular strength and expertise.
STANDARD CHARTERED BANK IN PAKISTAN:
YEAR OF SETUP
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
NUMBER OF BRANCHES
The bank has a network of over 174* branches in 41 cities in Pakistan adding
154 branches and 33 cities over last four years. Standard Chartered employs a
workforce of over 9,000 employees in its Pakistan operations. Standard
Chartered Bank has a network of over 200 ATMs across Pakistan. Standard
Chartered has a network of over 1,600 branches and outlets and 5,500 ATMs in
more than 70 countries and territories across the globe, making it one of the
world's most international banks.
PERFORMANCE
As one of the world's most international banks, Standard Chartered employs
70,000 people, representing with 125 nationalities, worldwide. This diversity lies
at the heart of the Bank's values and supports the Bank's growth as the world
increasingly becomes one market.
With strong organic growth supported by strategic alliances and acquisitions and
driven by its strengths in the balance and diversity of its business, products,
geography and people, Standard Chartered is well positioned in the emerging
trade corridors of Asia, Africa and the Middle East.
Standard Chartered derives over 90 per cent of profits from Asia, Africa and the
Middle East. Serving both Consumer and Wholesale Banking customers
worldwide, the Bank combines deep local knowledge with global capability to
offer a wide range of innovative products and services as well as award-winning
solutions.
Trusted across its network for its standard of governance and corporate
responsibility, Standard Chartered takes a long term view of the consequences
of its actions to ensure that the Bank builds a sustainable business through
social inclusion, environmental protection and good governance.
Standard Chartered is also committed to all its stakeholders by living its values
in its approach towards managing its people, exceeding expectations of its
customers, making a difference in communities and working with regulators.
Standard chartered bank is the first international bank to get an Islamic banking
license and to open the first Islamic banking branch in Pakistan.
CREDIT RATING
Pakistan Credit Rating Agency (PACRA) has maintained the Bank’s long-term and
short-term ratings “AAA” (Triple A) “A1+” (A One Plus) respectively in 2008. The
Bank’s outstanding two listed, subordinated TFCs are also assigned “AAA” rating.
These ratings denote the lowest expectation of credit risk emanating from an
exceptionally strong capacity for timely payment of financial commitments.
EXTERNAL AUDITORS
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
The audit committee has suggested the name of M/s KPMG Taseer Hadi &
Company, Chartered Accountants as external auditors of the bank for the next
term. The retiring auditors, being eligible, offer themselves for re-appointment
till the conclusion of next Annual General Meeting.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
ORGANIZATIONAL STRUCTURE
ORGANOGRAM OF STANDARD CHARTERED BANK
BALANCE SHEET
banking system was 11.8% at end-Sep'08. Tier 1 capital ratio of the banking
system was 9.7%. However, challenges remain in terms of NPLs emanating from
some of the more leveraged sectors.
Total assets of the bank grew to PKR 264.6 billion from last year's PKR 255.5
billion mainly due to increased lending in wholesale banking. Total net loans and
advances increased by approximately 5% to PKR 125.60 billion from PKR 119.54
billion while deposit base was marginally reduced by 1.5% to PKR 174.5 billion
compared to PKR 177.2 billion last year. The bank continues to maintain
adequate liquidity. The advances to deposit ratio as at December 31, 2008 was
72%.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
PRODUCTS
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
• Mahana
Amdani
Certificates
• Overdrafts
• Lockers
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Special Features
Special Features
• Current account, mandatory introduced by State Bank of Pakistan
• Non-profit bearing
• Minimum Balance Required: None
• Account Statements: Issued on annual basis
• Account closure: If balance is Nil for 180 days
• Fees: Maximum 2 free deposits & 2 free withdrawals allowed per
month. (Rs 100 will be charged after second transaction)
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Special Features
Special Features
➢ BUSINESS ACCOUNT
Take customer business to soaring new heights with this account. Business
Account provides efficient, accessible and convenient transactional
capabilities of a world-class bank with highly competitive charges.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
16.33%
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
DEPOSITS
Deposits from notes to the consolidated financial statements shows that fixed
deposits increased as of saving deposits increased similarly, Current account
decreased but as we make conclusion out of it, deposits of 2007 was greater as
compared to deposits of year 2008.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
ADVANCES
Advances are stated net of provision against non-performing advances. Specific
and general provisions are made based on an appraisal of the loan portfolio that
takes into account Prudential Regulations issued by SBP from time to time.
Specific provisions are made where the repayment of identified loans is in doubt
and reflect an estimate of the amount of loss expected. The general provision is
for the inherent risk of losses which, although they have not been separately
identified, are known from experience to be present in any loan portfolio.
Provision made / reversed during the year is charged to the profit and loss
account and accumulated provision is netted off against advances. Advances are
written-off when there is no realistic prospect of recovery. When the Bank is the
lessor in a lease agreement that transfers substantially all of the risks and
rewards incidental to ownership of an asset to the lessee, the agreement is
presented within loss and advances.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
INVESTMENT
One of the greatest myths about investing is that it’s only for the very wealthy.
The fact is that Mutual Funds have made it possible for anyone to invest, even if
it is a small amount. It is not how much you invest, but how you invest that
matters. The first step towards developing an investment plan is to understand
your needs. How long can you afford to stay invested, how much money you
need, how much risk you are comfortable with and what are your goals, are
some questions that need to be addressed at the onset.
With limited investment options and a booming but volatile stock market, what
is good for customer hard earned income is an important decision. Standard
Chartered Investment Services help with the decision, once again, a first such
service to be offered by any Bank in Pakistan.
Since 2004, Standard Chartered bank is the first bank to offer a diverse portfolio
of investment options to its valued customers. Offerings are designed to provide
customer with an opportunity to diversify his/her investments, minimize risk and
maximize returns!
1. Government Securities:
These are issued by Government of Pakistan and include Special Savings
Certificates (3 year investment) and Defense Savings Certificates (10 year
investment)
2. Mutual Funds:
Standard Chartered Bank has partnered with the leading investment houses of
Pakistan for distributing their mutual funds.
A Mutual Fund is a pool of money that gives small investors access to a well-
diversified portfolio of equities, bonds, and other securities. Each shareholder
participates in the gain or loss of the fund. Shares are issued and can be
redeemed as needed (in the case of an open-ended fund). The fund's net asset
value (NAV) is determined each day. Each mutual fund portfolio is invested to
match the objective stated in its investment agenda.
• Equity Funds
An equity fund is one that is invested mainly in company equity through the
stock exchange and is exposed to the risk of volatility associated with the
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
equity market. Although this fund is the riskiest within the genre of mutual
funds, it is also known to yield the maximum yields and dividends.
A Fixed Income Fund is one that invests in avenues which offer fixed returns
over a set tenor. These funds are inherently linked to the general interest rate
and are, therefore, unlike the stock market, safe from drastic fluctuation. The
capital value is more easily sustainable while the returns are generally
modest. However, active fund management can yield returns which are
higher than most fixed income avenues in the market and therefore, it is an
attractive investment avenue for investors with moderate risk appetites.
A Money Market Fund is one that invests in liquid, short-term avenues which
offer fixed returns over short periods. These funds are inherently linked to the
general interest rate and are, therefore, unlike the stock market, safe from
drastic fluctuation. Underlying investment may include securities issued by
corporate bodies, spread transactions, reverse-repo transactions, selective
exposure in the CFS market, Term Finance Certificates (TFCs) and commercial
paper.
• Balanced Funds
These funds maintain a mix within equity and fixed income markets. The
inclination of this mix will be dictated by the fund’s strategic intent and
mission statement. This fund offers more maneuvering room to its fund
managers as they have the option to switch between market types i.e. fixed
income avenues and capital markets. Effectively, the risk associated to this
category lies somewhere between that of equity funds and fixed income
funds and the returns also vacillate correspondingly between the ranges of
the two.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
b) Held to maturity
These are securities with fixed or determinable payments and fixed maturity
that are held with the intention and ability to hold to maturity. These are
carried at amortised cost.
d) Subsidiaries
Investments in subsidiaries are carried at amortised cost.
Investment by Segment
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Over the years the role of PBA has broadened considerably. It is now referred to
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Being a Private Limited Company, PBA also holds Annual General Meetings, and,
as per need, Extra Ordinary General Meetings to carry out business required to
be done therein under the law, and as required by its charter (Articles of
Association).
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
FUTURE OUTLOOK
The growth in banking system has been driven by rise in deposits to Rs4.1
trillion and advances to Rs3.3 trillion. Banks as profitable ventures have
attracted close to over $4 billion of foreign direct investment during 2006-2008.
Almost half the assets of banks are now owned by foreign banks that are
introducing innovation and technological improvements. Recapitalization and
prudent lending supported by strong regulatory and supervisory framework have
lowered net non-performing loans to historical lows. In line with international
trends, SBP introduced Basel II and banks have higher capital adequacy levels
--well above the minimum level for the sector as a whole. Despite economic
shock and stress in stock market, the banking system in the first quarter of the
fiscal year 2009 has shown an increase in profitability of the banking system.
Central bank’s policies, regulations and supervision systems have been
substantially transformed and barring one area (i.e. noncompliance with
consolidated supervision principles progress on which is also underway) SBP
regulatory and supervisory framework is now in line with the international best
practices and norms.
Deposit base rose to Rs 4.1 trillion and gross advances to Rs 3.3 trillion by
September 2008. Supported by the growing financial intermediation process,
banks’ aggregate profitability rose from Rs 63.3 billion in 2005 to Rs 73.3 billion
by 2007 and Rs 46.0 billion for half year 2008. Recapitalization and prudent
lending has lowered banks’ net non-performing loans (NPLs) to around 2.0
percent. Banks’ capitalization and quality of assets have helped raise the risk
weighted capital adequacy ratio to 12.1 percent, well above the regulatory
minimum of 8.0 percent.
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Standard Chartered [MONE
Bank Y BANKING & FINANCE]
Agriculture lending has received a significant boost with the banking system
meeting its target of Rs 200 billion set for 2007/2008. This notwithstanding,
outstanding agriculture advances account for only 6% of total advances and the
current flow of credit meets only 45% of the sector’s credit requirements. SBP’s
strategy for agriculture credit seeks to double the number of borrowers from 2
million to 4 million and to meet 75-80% of the agriculture credit requirements
within 3 to 5 years.
SBP has encouraged a revolving three-year credit scheme under which farmers
can borrow for one year and continue to borrow without providing
documentation each year. Guidelines have been issued for lending to the
livestock, fisheries and horticulture subsectors and programs are being launched
for the dairy sector. In addition, a Small farmer special financing scheme has
been promoted based on group based lending and a Crop loan insurance
scheme has been structured which is now being offered by some insurance
companies. Agriculture credit based on Islamic principles will be promoted and
capacity building provided to farmers and bankers in regional languages.
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