In Pakistan, JS Bank (a majority-owned subsidiary of Jahangir Siddiqui & Co. Ltd) continues to boost its market share in terms of deposits, assets and non-funded income (NFI) businesses. JS Bank’s growth policy is based on innovative product development to better address client/customer needs, improving customer accessibility by branches, a robust technology network and strengthening of service quality to create a satisfying banking experience in the country. The management of the Bank leverages its superior partnerships with world class institutions to enrich customer experience and improve their ability to better serve the diverse needs of their customers.
During nine months period and third quarter ended September 30, 2017, the financial experts of the bank mentioned in their report that the deposits and advances rose from Rs226.1 billion and Rs93.8 billion as at December 31, 2016 to Rs273.8 billion and Rs150.6 billion respectively as at September 30, 2017, whereas investments rose from Rs133.7 billion to Rs193.9 billion during the same period. No doubt, JS Bank is slowly growing its market share in the consumer banking and leasing businesses sectors.
The management is pursuing a focused growth policy and entering into strategic partnerships to build a healthy consumer and leasing portfolio in Pakistan. The report also mentioned that the bank’s branch in Bahrain continued its pace of growth in the second year of its operations. The branch is engaged activities like lending, trade finance, deposit taking and investments. The branch aims to more strengthen its business by offering comprehensive wholesale banking services to meet the needs of a wide range of customers across the region.
| FINANCIAL PERFORMANCE (Unaudited) | ||
|---|---|---|
| Details | 9-month ended | 9-month ended |
| 30-Sep-17 | 30-Sep-16 | |
| Profit before tax | 175.9 | 162.2 |
| Profit after tax | 98.2 | 115.4 |
| EPS (Rs) | 2.58 | 2.71 |
| Source: JS Bank | ||
JS Bank has earned a profit-before-tax (PBT) of Rs825.1 million for the nine months closed September 30, 2017 as against to PBT of Rs1,842.8 million in the same period last year. The fall in profit was chiefly because of a fall in capital gain on securities and a rise in the operating expenses because of launching new initiatives.
Presently the State Bank of Pakistan (SBP) raised its policy rate by 25 basis points to 6 percent to pre-empt overheating of the economy and inflation breaching its target rate. SBP mentioned that Pakistan’s economic growth is on track to achieve its highest level in the last eleven years. SBP also stated that broad money supply increased slightly by 1.9 percent during the period of 1st July 2017 to 12th January 2018. Higher tax collection and proceeds from the issuance of Sukuk and Eurobond have led to reduction in net budgetary borrowing which reached at Rs401.9 billion during 1st July 2017 to 12th January 2018 as against to Rs 470.4 billion in the same period of the previous year.
Pakistan’s banking experts also revealed that during 9MFY2017 banking sector continued to witness an uptick in private sector credit off-take, where private sector borrowing jumped by 21 percent in August 2017 as compared to 12 percent in the last year. Banking spreads continued their downward trend where for the first two months of FY2018, spreads dropped to 4.96 percent marking a 20 bps YoY decline. Advances in the sector continued their strong growth recording a 20 percent YoY rise to Rs6,137 billion, growing the Advances-to-Deposit Ratio (ADR) to 51 percent as banking deposits touched Rs11,980 billion as at September 30, 2017 and recorded a growth of 14 percent YoY.
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Investments also increased by 13 percent YoY reaching Rs8,338 billion. NPLs showed a fall to Rs603.8 billion (March 2017) from Rs649 billion (June 2016), enhancing the industry infection ratio from 11.7 percent to 9.9 percent during the period. Despite all of these, JS Bank continues its premier role in the secondary and primary debt market it captured 6.7 percent of market share in the secondary market and 8.8 percent in the primary market during the quarter under review. In addition, the Treasury placed corporate debt instruments of over Rs8.37 billion in the market via IPOs during the nine months period closed September 30, 2017.
The management still continued to enlarge its cross currency swap portfolio in the third quarter with the aim to apply for an ADD (Authorized Derivatives Dealer) license in the future. Furthermore, the bank continues to increase its panel of worldwide and regional correspondent banks, spanning over 90 states and 350 delivery points. The extensive network allows the bank to facilitate its customers by offering a vast array of trade finance and remittance services.
Js Global Capital Limited
JS Global Capital Limited (JS Global) is one of the largest securities brokerage and investment banking firms in Pakistan with a leadership position in the domestic capital markets. In the financial report of the Bank, it is mentioned that JS Global has shareholders’ equity of Rs2614.5 million as at September 30, 2017. JS Bank has 67.2 percent ownership of the company and listed on PSX.
Js Investments Limited
JS Investments is an Investment Advisory and Asset Management Company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the NBFC Rules) and the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the NBFC Regulations).
In addition, JS Investments is also a licensed Pension Fund Manager under the Voluntary Pension System Rules, 2005, to manage voluntary pension schemes. Financial experts of the bank also mentioned in the financial report that the JS Investments has shareholders’ equity of Rs2321.8 million as at September 30, 2017. JS Bank has 65.2 percent ownership of the company and listed on Pakistan Stock Exchange (PSX).