It is listed on all three stock exchanges and operates in all major cities in Pakistan, with a primary focus on retail banking and trade finance. The Board and the management of the bank are a blend of experienced bankers, industrialists and businessmen.
According to the Directors' Review, for the fifth consecutive year, Metro Bank continues to enjoy the highest credit rating of AA+ (Double A Plus) for long term and A1+ (A One Plus) for short term assigned to private sector banks in Pakistan by Pacra.
Metro Bank operates 47 branches including an Islamic Banking Branch in Pakistan. The Islamic Banking branch is said to be fully capable of catering the customers seeking Sha'ria compliant products.
THE KEY FINANCIAL FIGURES OF THE ISLAMIC BANKING BRANCH AS ON JUNE 30, 2005 ARE: Islamic Banking Fund Rs 50 million, Deposits Rs 174 million, Borrowing from Head Office Rs 59 million, Financing Rs 262 million, Profit before taxation Rs 1.9 million, and Letter of Credit Rs 43 million.
Metro Bank has been recently approving interim stock dividend for its shareholders.
The paid up capital on January 1, 2004 at rupees one billion, has on June 30, 2005 risen to Rs 1.56 billion. With reasonable profitability and reserves, it should not be difficult for the bank to be in compliance with minimum paid-up capital requirement of rupees two billion by December 31, 2005.
Total Assets of the bank increased by 7% to Rs 73 billion as on June 30, 2005 compared to Rs 68 billion as on December 31, 2004.
Investments as on June 30, 2005 increased by hefty 24 % to Rs 19 billion (27% of Total Assets) compared to Rs 15 billion (23% of TA) as on December 31, 2004. Advances also increased by modest 5% to Rs 42 billion compared to Rs 40 billion on the last balance sheet date. The NPLs at Metro Bank as per the Unaudited accounts are exceptionally low at 0.2 % of Advances on June 30, 2005 (December 31, 2004: 0.2%).
As compared to Equity, the NPLs are 2% on June 30, 2005 (December 31, 2004: 2%). The provisions against doubtful loans work out to 0.1 % of Advances for 2005 (2004: 1.2 %). The provision made by the bank, however, is in excess of the prescribed requirement under Prudential Regulations. As some doubtful loans have the tendency to stay under cover for quite sometime due to different reasons, a prudent policy would be that the management makes higher general provision against doubtful loans along with critical re-examination of risk management procedures being used at present.
Deposits with the bank on June 30, 2005 are at Rs 51 billion (71% of TA) compared to Rs 48 billion (72% of TA) on December 31, 2004. Metro bank has exceptionally large borrowings from financial institutions on June 30, 2005 at Rs 13.5 billion (19% of TA), 10% increase over Rs 12.3 billion (18% of TA) recorded as on December 31, 2004. Total Liabilities saw an increase of 7% to Rs 68 billion (94% of TA) compared to Rs 64 billion (94% of TA). In the meantime Shareholders Equity remained at 6% of total assets. In order to be able to withstand unexpected shocks, the stakeholders might consider boosting the proportion of equity.
Profit before tax of Rs 803 million for six months ended June 30, 2005 indicates 22% growth from last year's corresponding period figure of Rs 659 million. Profit after tax of Rs 523 million shows increase of 38% over Rs 379, resulting in EPS of Rs 3.36. This is essentially ascribable to 31% increase in net markup income for the period under review at Rs 953 million compared to Rs 727 million for the corresponding period last year.
The depositors were paid by way of mark up expense only 48% of total mark up income for the period under review (45% for corresponding period last year). During the period under review, Non-mark up income declined by 8% to Rs 340 million compared to Rs 368 million. Metro Bank closed the current six months with ROE of 11.5% as against 8.9 % for the corresponding period last year. Performance statistics are given below.
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Performance Statistics (Rs, 000) (Audited)
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Balance Sheet (Unaudited) On December.31,
As on June 30 2005 2004
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Total Assets: 72,604,935 67,890,525
Cash, balances with banks: 6,533,390 7,007,577
Lending to financial institutions: 3,268,791 4,132,234
Investments-Net: 19,330,874 15,559,826
Advances-Net: 41,986,362 40,121,548
Borrowing from fin. Institutions: 13,521,277 12,327,265
Deposits, other accounts: 51,452,435 48,595,565
Total Liabilities: 68,040,886 63,626,729
Share Capital: 1,560,000 1,200,000
Reserves, Retained earnings: 2,531,645 2,368,212
Surplus on Revalu. of Securities: 472,404 695,584
Total Equity: 4,564,049 4,263,796
Subordinated Loan: 0 0
Equity and Sub. Loans: 4,564,049 4,263,796
NPLs at end of period: 94,982 89,690
Contingencies and Commitments: 35,409,157 29,328,002
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Ratios:
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Cash and bank/Total Assets: 9% 10%
Investments/Total Assets: 27% 23%
Advance/Total Assets: 58% 59%
NPLs/Advances-Gross: 0.2% 0.2%
NPLs/Total Equity: 2% 2%
NPLs/Total Equity and S Loans: 2% 2%
Prov. required/Advances Gross: 0.1% 1.2%
NPLs Prov. Req./Provision Held: 776% 100%
Deposits/Total Assets: 71% 72%
Total Liabilities/Total Assets: 94% 94%
Total Equity/Total Assets: 6% 6%
Equity and S. Loans/Total Assets: 6% 6%
Deposits/(Equity+S.Loans)-X: 11.3 11.4
Advances/Deposits: 82% 83%
Investments/Deposits: 38% 32%
Contin.& Comm./(Equity+SL)-X: 7.76 6.88
Book Value Per Share: 29.26 35.53
Quoted Price (14-10-05) - Rs: 70.10 -
Price/Book Value Ratio: 2.40 -
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Income State. (HY end June 30) 2005 2004
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Markup/interest earned: 1,840,734 1,332,547
Markup/interest expensed: 887,766 605,550
Net Markup/interest income: 952,968 726,997
Total non-markup income: 339,948 368,036
Admin expenses: 471,416 390,162
Profit before Taxation: 803,473 659,038
Profit after taxation: 523,433 379,231
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Ratios: (Half Yearly Basis)
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Net Markup Income/Total Assets: 1.3% 1.1%
Non-Markup Income/Total Assets: 0.5% 0.5%
Admin Expenses/Total Assets: 0.6% 0.6%
Profit Before Tax/Total Assets: 1.1% 1.0%
Profit After Tax/Total Assets: 0.7% 0.6%
Profit After Tax/Total Equity: 11.5% 8.9%
EPS-(HY end paid up) - Rs: 3.36 3.16
Price/Earnings Ratio: 20.89 -
Bonus Shares: 30% 0%
Cash Dividend: 0% 0%
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Cash flow Summary (Half Year) 2005 2004
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Net Cash flow, Operations: 3,693,656 -1,288,090
Net Cash flow, Investing: -4,167,841 1,778,255
Net Cash flow, Financing: -2 -26
Net Cash flow Position for Period: -474,187 490,139
Cash and bank at beginning: 7,007,577 3,901,883
Cash and bank at end of period: 6,533,390 4,392,022
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COMPANY INFORMATION: Chairman: Bashir Ali Mohammad; President & Chief Executive: Kassim Parekh; Director: Mohamedali R. Habib; Company Secretary: Fuzail Abbas; Auditors: Hyder Bhimji & Co, Chartered Accountants; Head Office and Registered Office: Ground Floor, Spencer's Building, G.P.O. Box 1289, I.I. Chundrigar Road, Karachi-74200, Pakistan 14th Floor, Saima Trade Towers 'A', I.I. Chundrigar Road, Karachi-74200, Pakistan; Web Address: www.metrobank.com.pk