Faysal Bank of Pakistan Presentation

Faysal Bank of Pakistan

President & CEO                                           Chairman

Naved A. Khan                                                Syed Naseem Ahmad

Board of Directors

Lt.Gen. Muhammad Maqbool (Retd)
Hassan Mohammed Mahmood Hassan
Graham Roderick Walker

Farooq Rahmatullah
Mohamed A. R. Hussain
Shahid Ahmad

History of Faysal Bank

Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Ordinance, 1984. Currently, the Bank's shares are listed on the Karachi, Lahore and Islamabad Stock Exchanges. Faysal Bank is engaged in Commercial, Consumer, Corporate and Islamic Banking activities. The Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited have determined the Bank's long-term rating as 'AA' and short term rating as 'A1+'

Following the acquisition of RBS Pakistan, Faysal Bank’s footprint has expanded to over 245 branches, with combined business assets of over PKR 250 billion, further strengthening its balance sheet and placing it amongst the top ten banks in Pakistan. Faysal Bank’s ambition is to provide par excellence service for its customers while meeting all their financial needs.

Group Information

Ithmaar Bank B.S.C. (stock code "ITHMR") is licensed by the Central Bank of Bahrain and listed on the Bahrain Stock Exchange and the Kuwait Stock Exchange. It has a paid-up capital of US$598 million, total equity of US$1.1 billion and is a full service investment bank with its direct business covering the Middle East and North Africa (MENA) region, as well as South Asia, Asia-Pacific and Europe. Besides holding significant investments in the banking and financial service sectors in different markets, the main direct activities of the Bank include underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing and advisory services covering project financing, investments, capital markets and mergers & acquisitions.

Ithmaar Bank's flagship subsidiaries and associates include Shamil Bank of Bahrain (headquartered in Bahrain), Ithmaar Development Company, Faysal Bank Limited (Pakistan), Faisal Private Bank (Switzerland), Sakana Holistic Housing Solutions, Solidarity (an Islamic insurance company), BBK B.S.C., Bahrain based First Leasing Bank, and Ithraa Capital (Saudi Arabia). For more information on Ithmaar Bank, please visit the Bank's website at www.ithmaarbank.com..

Our Vision & Mission
Excellence in all that we do

To excel in providing innovative, value based banking solutions to meet changing needs of customers and to strengthen the image of trust and reliability

Our Values
Our daily code of conduct is exemplified by eight core values:
Four threshold values — values at the heart of our brand.
Four differentiator values — values that set our brand apart.

Strengths

It resulted in a larger, stronger and much more versatile institution.

In fact it has the highest share capital amongst private banks in Pakistan.

The largest in terms of equity.

Innovation

We pioneer novel and more efficient ways to deliver solutions.
We are dedicated to a culture of improvement and modernization.
We stand for originality, in thought, in action and in belief.
Our Innovation: Our Strength.

Teamwork
We function as a team. Within functions, we cooperate.
Between functions, we collaborate.
Together, we aim for excellence and leadership in our chosen markets.

Integrity

We are recognised by our reliability, credibility and character.
We believe in ethical, honourable, time-proven principles of uprightness.
We stand for and abide by honesty, truth and transparency.

Professionalism

We are proficient and efficient in all that we do.
We provide banking services knowledgeably and skillfully.
We uphold regulatory obligations.
Our Professionalism: Our Competence

Responsiveness

We are receptive to the need for change and improvement.
We are proactive and anticipate our customers’ needs and wants.
We act quickly to modify, adjust or prepare for new realities.

Products and Services

We are a progressive bank striving to offer innovative products, easy accessibility, quality service & convenience to our customers. We offer customized financing solutions with flexible criteria and convenient loan tenures. You can avail car, home and personal loans through our various branches. We also offer a host of Corporate & Investment Banking Services to our clients, which include financial and corporate advisory services, along with a wide array of tools to help them achieve their goals.

Products:

• Deposit
• Saving accounts
• Rozana Munafa Plus Account
• Faysal Moavin Account
• Faysal Premium Account
• Faysal Izafa Account
• Mahfooz Sarmaya
• FCY Savinsg Plus Account
• Consumer Loans:
• Car Loans
• Housing Loans
• Corporate & Investment Banking:
• Corporate Financing
• SME Finance
• Trade Finance
• Treasury & Capital Markets
• Agricultural Financing
• Cash Management Services

Services:

• PocketMate Visa Debit Card
• Travellers Cheques
• Transfer of Funds
• Safe Deposit Lockers
• Non-Stop Banking

Pest Analysis

Political Situation:

Political challengers also remained in the limelight during the year. Recent electionshave been one of the most watched for in our history. Though the political environmentis likely to remain unstable for a while, we believe law and order situation is the most important conduit of its influence on the economic activity. As far as the economic policies of different political parties are concerned, these are not easily distinguishable. Privatizing, deregulation and focus on foreign investment are the main pillars of economic policies of all the leading parties.

Technology:

The bank also continued its policy of upgrading technology to meet the challenges of

modern banking. During the year the bank achieved the distinction of having successful completed the mammoth project of changing of the core banking system commenced in 2005 and fully migrated to a modern centralized processing system SYMBOLS acquired from a reputable international vendor and being used by a large number of banks in Europe, Asia, the Middle East, and Africa. With the successful implementation of new centralized database system the bank is in the final stages of implementation of Oracle Financials that will give it significant MIS flexibility, ease of operation and improved internal controls. To address its need for modern technology based banking and for managing a 360degree view of its customers for better client service, the bank has now embarked upon implementing the world renowned Customer Relationship Management (CRM) solution Siebels and a FULL FUNCTIONAL Contact Centre. The bank has also initiated implementation of Oracle HRMS, a powerful human resource management system for effiThe bank with the assistance of independent reputable professional consultants, prepared and implemented a detailed Business Continuity Plan (BCP), Disaster Recovery Plan (DRP) and information System Security policies for its new technology platform under the guidelines provided by the State Bank OF Pakistan and ISO 1799/ BS7799.2:2002.

Economic Review:

Pakistan’s economic continued to show resilience and strong performance. It grew by 7% in 2006-07 and is expected to grow by over 6% in 2007-08, which is one of the highest in the region. Investment a key determinant of growth reached a record level of 23% of GDP. This was mainly caused by higher FDI and a remarkable surge in investment in the local stock market and GDRs issues. Pakistan received USD 5.1 billion of FDI during FY07, which was 46% higher than FY06. Another encouraging aspect was the remarkable growth of 19.4% YOY in workers remittances during FY07 to reach USD 5.5 billion. However, higher commodity prices and a rising oil import bill are pushing inflation and the current account deficit.

SWAT Analysis

Strengths:

FAYSAL bank has achieved marked success in its strategy of expanding and diversifying its customer base and launching new and innovative financial products

Faysal Bank has been operating in Pakistan since 1987 and is listed on the Karachi and Lahore Stock Exchanges. The bank has approximately 2000 employees, a branch network of 129 branches, 2 sub-branches, one sales and service centre and an ATM network of 93, in 38 cities across Pakistan. Faysal Bank’s strength is validated by its credit rating of AA (Double A) for long term and A1+ (A1 plus) for the short term assigned to it by both by PACRA and JCR VIS.

Weaknesses:

 But due to centralized system the approval of all the transactions has to taken from head office. Organizational structure of FAYSAL bank is Functional based. Every employee is responsible for his own operations and no co-ordination exists among departments.

Most of the hiring is on contract basis.

Promotion is slow. Salary package is not so much attractive.

Clients of Faysal Bank are less in number as compare to its some competitors

Opportunities:

FAYSAL bank is now looking in to new ways of providing banking service to its customers. New concept of mobile banking has been introduced by the bank, which will prove to be a remarkable success in the field of consumer banking group.

Competition in the field of consumer banking has been intensified as large consumer banks continued to play a significant role in terms of products and services. FAYSAL bank is preparing for this competition by establishing a dynamic platform that will enabled it to launch a series of new products in years to come. This dynamic platform will be supported with a robust operational infrastructure and delivery mechanism.

Threats:

Bank has to maintain a balance between its liabilities and assets structure. Turn Over rate is very high.The sad part is that our industrial base isn't growing and industrial demand for credit is, therefore, low. Banks is aggressively lending in the consumer sector. Cars, motorcycles, home mortgages. Industrial sector is the most powerful sector which can contributes towards assets of bank. But in Pakistan due to instability in economic condition this sector is not flourishing too much. As a result the rate of industrial loaning is also very low. If bank continues in advancing consumer loansthen it will become a threat for the assets of bank and resources of the bank willcontinue to be wasted. New incoming local and especially foreign banks are making tough competition among banks. The employees of Faysal Bank are Dissatisfied

CONCLUSION:

FAYSAL bank will remain an aggressive and innovative financial institution and continue to adhere to the tradition of understanding its customer’s needs and looking for new ways to serve them. Further integration and productivity gains will result in stronger performance in terms of revenue as well as service quality in the coming years. The strong leadership of Board and management and the relentless effort of the staff at FAYSAL bank will be able to offer more superior products and services to customers and to contribute more to economic and social development of Pakistan while developing a bigger future for it.

Reference

• Faysal bank (Burket Market)
• www.Faysalbank.com
• www.scribd.com