The Millennium Bank The Millennium Bank
as of 20 October 2015 Bank Pasargad Presentation 31, AugustAs of 2015 20 Dec. 2016 No.No. 430430,, MirdamadMirdamad Blvd.,Blvd., TehranTehran 19697745111969774511,, IranIran Tel:Tel: (+(+98219821)) 8289104182891575;; Fax:Fax: (+(+98219821)) 8289102988649521 -- website:website: www.bankpasargad.comwww.bankpasargad.com -- SWIFT:SWIFT: BKBPIRTHBKBPIRTH Table of Content
History 01 Net Profit of 15 Iranian banks 16 Assets and Liabilities Structure 29 Our Vision 02 Adherence & Compliance to 17 International Regulations Total Owners’ Equity Growth 30 Mission 03 Adherence & Compliance to 18 Key Performance Measures Domestic Regulations 31 International Development 04 Changes in Capital 19 Key Performance Measures 32 Bank Pasargad Financial Group 05 Shareholding Structure 20 Financial Ratios 33 Bank Pasargad at a Glance 06 Organizational Chart Subsidiaries and Affiliates 07 21 Deposits 34 Board of Directors 22 FANAP 08 International Operations 35 PEDC 09 Executive Board Members 23 Competitive Advantages 36 PEDC 10 Branches 24 Corporate Social Responsibility 37 MIDHCO 11 Electronic Banking Services 25 MIDHCO 12 Awards and Achievements 38 Electronic Banking Services 26 Nassim Salamat Pasargad 13 Human Capital 27 Market Share 14 Total Asset Growth Market Share 15 28
BANK PASARGAD The Millennium Bank 1
History
Bank Pasargad is a fully private bank listed on the Tehran Stock Exchange with more than 1.5 million direct and indirect shareholders providing more than 3.99 million clients with a wide-range of banking services in both local and foreign currencies in compliance with international laws and regulations.
Sept. 2005 Dec. 2006 Aug. 2011
Banking operation's license No. License for full international Shares were listed on the Tehran H/2849 granted by the Central banking operations granted by the Stock Exchange (TSE) Bank of Iran on 13 September Central Bank of Iran on 12 2005 December 2006
BANK PASARGAD The Millennium Bank 2
Our Vision
To become the best financial services company in the We will do so by: Middle East banks and to be ranked among the world’s top 500 corporations. Adherence to our core values and principles so fundamental for our success
Sustainability of development and growth in both domestic and international markets
Commitment to innovation, customer satisfaction, value creation and sound investment decisions
Providing a full range of banking and financial services for private and corporate clients.
BANK PASARGAD The Millennium Bank 3
Mission
Our Mission Statement
Our mission is to realize high returns and further prosperity for our stakeholders by assuring a continuous and sustainable growth for the bank and by having an impact on the growth of the national economy
To remain committed in assisting companies to grow both domestically and internationally, enabling businesses to thrive and economies to prosper
To fulfill our corporate social responsibilities and remain faithful to our core values of honesty, integrity and creativity
To always remain a fully “customer-focus” financial institution by relying on a rich organizational culture and sound fundamental values
BANK PASARGAD The Millennium Bank International Development
Bank Pasargad’s future international development shall be based on 3 pillars:
Establishment of a performing and inclusive international network of branches and subsidiary banks,
Opening Bank Pasargad’s shareholding structure to strategic investors as well as global and regional banks,
Being listed on a major foreign stock exchange.
BANK PASARGAD The Millennium Bank 5 Pasargad Financial Group Pasargad Financial Group consists of the bank, 4 specialized holding companies and 68 subsidiaries of which Iran’s largest Private ICT Co. 11 are consolidated with the bank’s financial statements : 2,500 Employees Networking Insurance Telecommunications RE-Insurance ICT Holding Co. Smart City Financial & Pasargad Bank Holding Co. Leasing Co. (FANAP ) Core Banking Brokerage Insurance Sector Core Insurance House Companies (BHC) Smart Building Exchange House EFT Payment Switch Pars Aryan Investment Co. Credit/Debit Cards Payment Solutions ERP Fixed Communication Provider (FCP) IPTV MVNO
Oil & Gas Pasargad Energy Upstream/Downstream Bank Pasargad Development Power- 6 Power Plants Holding Co. 2 Refineries (PEDC) 5 Pipeline Projects 2 Jack-up Rigs Offshore/Onshore Drilling Offshore Platforms
Hospital & Hotel 7 Hospitals of 1.000 beds each Holding Co. Hotels for 7.000 beds Arzesh Afarinan 7 Universities (NSP) Investment Co. 7 Residential Development Projects Industrial Parks Pasargad Real 15 Subsidiary Companies Office Buildings Estate 3 Steel Companies (Sirjan, Zarand & Residential Development & Butia) Buildings Construction Mining & Sirjan & Zarand Iron Ore Plants Leasing of Copper Cathode Plant Sector Industrial Residential Copper Pipe Plant Properties Companies Tamin Atieh Pasargad Holding Co. Metal Coke Plants (MIDHCO) Ferro Silicon Alloy Plants Coal Concentrate Plants Employee Fund Sponge Iron Plants Trading of Minerals Co. BANK PASARGAD The Millennium Bank Eng.& Construction Companies 6 Bank Pasargad at a Glance (as of 19 March 2016)
8 BANK PASARGAD The Millennium Bank 7
Subsidiaries and Affiliates Bank Pasargad Financial Group consists of the bank and 68 subsidiaries active in the fields of:
. ICT Bank’s Share Some of the Companies . Insurance & Re-Insurance % Million IRR . Stock Brokerage & Exchange House Pasargad Arzesh Afarinan Co. 97.995 7,447,639 Pasargad Leasing Co. 67 448,900 . Investment Pasargad Electronic Payment Co. 30 300,000 . Machinery Leasing Bank Pasargad Brokerage Co. 49 71,050 . Mining & Industrial Activities Pasargad ICT Co. (FANAP) 49 1,216,180 . Oil & Gas Middle East Mabna Co. 44 2,567,001 . Energy & Power Pasargad Insurance Co. 20 330,926 . Construction Leasing Pasargad Machinery & Equipment Leasing Co. 18 54,115 Pasargad Exchange Co. 90 198,288 . Real Estate Development & Construction Iranian Re-insurance Co. 4 80,915
Nasim Salamat Pasargad Co. 34 680,000 Pars Aryan Investment PLC, is the holding Pasargad Rahyaft No Avar Institute 15 19,150 company of the Pasargad Financial Group owning 9.88% of the bank’s shares. This table shows the banks’ main subsidiaries and affiliates as of 20 Dec. 2016:
BANK PASARGAD The Millennium Bank 8
FANAP FANAP is Pasargad Financial Group’s ICT holding company
FANAP is a world class ICT holding company delivering creative and tailored solutions to customers worldwide through smart technologies and services based on their needs and values.
FANAP provides optimal ICT services and solutions; ranging from financial enterprise solutions, Transaction processing engines, E-Payment networks, ICT Infrastructure, IPTV, MVNO, FCP, IT outsourcing services to Mobile Communication and value added services.
FANAP has been providing smart solutions for diverse industries by combining its rich technical resources with strong R&D. This is complemented by a professional business development unit bringing the solutions of tomorrow to its customers today.
FANAP benefits from a human resource of more than 1800 skilled knowledge worker and possesses a vast range of solutions that could cater to the needs of different businesses both private and governmental making them smarter and more efficient organizations.
Today, FANAP is supporting and providing services to:
12 Banks in Iran All 3 Iranian mobile operators 3 major municipalities in the 3 major Iranian cities of: Tehran , Isfahan and Mashhad
BANK PASARGAD The Millennium Bank 9
Pasargad Energy Development Company (PEDC) PEDC is Pasagad Financial Group’s Energy Holding Company
Formed in April 2008 with the objective of participating in the national and international energy markets in general and the development of Iran's energy sector in particular, today PEDC has more than IRR 25,000 billion (app. USD 833 million) of well diversified assets under management. It’s core business consists of: Hydrocarbon sector, Power Generation and Renewable Energy.
Oil & Gas – PEDC’s activities in Oil & Gas Sector is divided to: (i) Upstream (Exploration & Exploitation, Drilling Services) (ii) Downstream (Refineries and Petrochemical Complexes, Storage & Pipelines)
Upstream Drilling Services: PEDC has established subsidiaries to render Drilling Technical Service mainly but not limited to Well Logging, Well Testing and Directional Drilling. Petro Danial Kish Company (PDK) was established in 2010 as a Drilling Technical Service Company for oil industries. PDK has purchased all well logging machineries and equipment from reputable European and Canadian manufacturers and is able to provide bore hole petro physical and completion services such as Open Hole Logging, Perforation, Setting Packers and Plug with its Digital Advanced System. Petro Kariz Company has also been incorporated for Directional Drilling services and has rendered its services form early 2015. Upstream Drilling Jack-up Services: In late 2010 PEDC finalized a contract for purchasing two drilling Jack-up rigs specially designed for operating in the Persian Gulf. The first Jack-up rig was delivered and became operational in Phase 21 of South Pars gas field. The second jack-up rig will be delivered in 2016 and shall be operational in different oil and gas development projects. Upstream Software Development: In order to carry out research and development work towards production of very complex software related to energy in general and petroleum engineering in particular, an engineering company (TAFAHOM) was formed in late 2012. Upstream- Oil & Gas field Development: National Iranian Oil Company(NIOC) Has devised new form of contracts, IPC(Iranian Petroleum Contracts), for its oil field development, in which the contract would be awarded to foreign companies with Iranian joint venture or individually to Iranian competent companies. An exploration, Development and Production (E & P) company is being established by PEDC to undertake related upstream activities in the framework of IPC contracts.
BANK PASARGAD The Millennium Bank 10
Pasargad Energy Development Company (PEDC) PEDC is Pasagad Financial Group’s Energy holding Company
Downstream – Refineries: The current production of local refineries can supply almost 70 percent of the national demand and the rest of Iran’s consumption needs are to be imported. Refineries in Iran enjoy the privilege of convenient feed availability at compatible prices. These opportunities coupled with the strategic location of Iran in the Middle East, furnish the right environment for establishing new refineries. PEDC is presently developing 2 refineries: Qeshm Heavy Oil Refinary (35,000 Barrels/Day) and SIRAF Condensate Refinary(60,000 Barrels/Day). Down stream – Petrochemicals & Related Industries: Based on the availability of feedstock at a premium rate, many operational petrochemical plants, technical expertise and a vast local market coupled with extensive experience, Iran petrochemical industry with its solid foundations promises a bright future for investment. Benefitting from this occasion, PEDC has studied upstream and downstream petrochemical projects with a suitable rate of return and invested in: Sina Petrochemical Co., Romak Petrochemical Co., Fajr Kerman Petrochemical Co. & Hidaj Petrochemical Co. Down stream – Trunk Pipeline: In June 2015, PEDC signed a BOT contract with National Iranian Gas Company to export 40 million(Nm3/Day) of natural gas to Iraq. The pipeline is 580 KM long and with a diameter between 48 & 56 inches. 5 Gas Compressor Stations will be installed along the pipeline to maintain the transportation pressure to destination. This project is to be constructed within 2 years . Power Generation - The nominal capacity of all power plants of the country is expected to grow almost 3 times by the end of 2025 which together with the growing regional market translate to a great opportunity for investment in this industry. Present Power Plants include: • Khoy 350 MW Power Plant • Qeshm 500 MW Power Plant • Uromyieh 950 MW Power plant • Sirjan Power Plant (25 MW CHP) • Mashhad Shariati 500 MW Power Plant • Expansion of Uromyieh Power Plant (+480 MW)
BANK PASARGAD The Millennium Bank 11
MIDHCO Middle East Mines Industries Development Holding Company MIDHCO was established in year 2007 by Bank Pasargad Financial Group with a registered capital of 1,000 million Iranian Rial. In year 2011, MIDHCO was listed on Tehran’s OTC Market and is now operating as a Public Joint Stock Company (JSC) with 11,609 shareholders and a capital of 22,000 billion Iranian Rial (USD 730 million).
MIDHCO’s products are: Iron Ore Concentrate, Iron Ore Pellets, Sponge Iron, Coal Concentrate, Metallurgical Coke, Ferrosilicon, Steel Billet & Bloom, Copper Cathode ,Copper Tubes, Lime, Dolomite and Electricity.
MIDHCO presently has 7 subsidiary companies focusing on production and 8 subsidiary companies specialized in service:
In Production In Service No Name No Name 1 Middle East Meyare Sanat Engineering Company 1 Zarand Iranian Steel Co. “ZISCO” Iranian Industrial Development & Renovation Construction 2 Sirjan Iranian Steel Co. “SISCO” 2 Co. “MANA” 3 Butia Iranian Steel Co. “BISCO” 3 Samengan Tarabar Co. 4 Iranian Babak Copper Co. “IBCCO” 4 Middle East Karavaran Sanat Co. “MIEPCO” 5 Pabdana Faravaran Coal Co. 5 Middle East Aftab-e-Derakhshan Commercial Co. “MESCO” 6 Gharb-e-Pars Ferrosilicon Co. “FESICO” 6 Middle East Aftab Derakhshan Brokerage Co. Middle East Mines Renovation & Development Co. 7 GMI Project Ltd 7 “MEMRADCO” 8 World Mining Industry Co. “WMI”
BANK PASARGAD The Millennium Bank 12
MIDHCO Middle East Mines Industries Development Holding Company
MIDHCO has invested in excess of USD 5 billion in different projects:
• Sirjan Pellet • 2nd Hamedan Ferrosilicon • Butia DRI and Steel Making • Butia Pellet • Tabas Coal Washing • Butia Power Plant • Bardsir Steel Making • Lime and Dolomite • Khomrood Coal Mine • Cathode Copper • Zarand Blast Furnace and Steel Making
MIDHCO shall achieve the following production levels in near future:
No Product Amount (Tonne) 1 Iron Ore Concentrate (68%) 8,000,000 2 Coal Concentrate 978,000
3 Metallurgical Coke 800,000
4 Cathode Copper 50,000 5 Ferrosilicon 24,000 6 Sponge Iron 3,000,000 7 Iron Ore Pellet 7,500,000 8 Copper tube 12,000 9 Dolomite 132,000 10 Burned Lime 264,000 11 Steel Billet and Bloom 4,200,000
BANK PASARGAD The Millennium Bank 13
Nassim Salamat Pasargad Holding Company Bringing the best in Healthcare to your door steps
Today, Iran is faced with rapid rise in healthcare spending and lacks more than 110.000 hospital beds. NSP intends to develop 7 hospital projects in 6 cities under a Public Private Partnership (PPP) scheme with Iran's Ministry of Health (MOH) in order to bridge this gap. The 6 cities where the projects are to be developed are:
Tehran (2000 Beds) Qazvin (750 Beds) Karaj (1200 Beds) Qom (1000 Beds) Mashhad (1100 Beds) Ahvaz (1000 Beds)
Additionally, Iran is presently missing more than 50.000 beds of hotel beds. Specially, there is a niche market for luxury hotels with world class standings. In 2014, Iran was ranked 10th globally in terms of tourism growth.
Internationally regarded as one the most ancient civilizations, Iran has 19 sites designated by UNESCO as “World Heritage Sites”. With the lifting of international sanctions, we expect heavy inflow of tourism to all Iranian cities and historical sites.
NSP intends to build several world class hotels of high standing in Iran totaling 7.000 beds to address this need and benefit from future flourishing of tourism and health-tourism industry in Iran.
BANK PASARGAD The Millennium Bank 14
Bank Pasargad share of the Iranian banking market among 15 originally established Market Share private banks that are members of the “Iranian Institutional Investors Association” ( as of 20 Dec. 2016 ):
Today, there are 30 banks in Iran divided in 5 categories: Deposits: 12.51% Third among 15 private banks
(1) 3 State Owned Commercial Banks Facilities Granted: 17.11% First among 15 private banks (2) 5 State Owned Specialized Banks
Letters of Credit: First among 15 private banks (3) 4 National banks that were 43.26 % privatized
(4) 16 Originally established Guarantees: 15.23% Second among 15 private banks private banks
(5) 2 Gharzalhasaneh Banks Investment: 12.14% Third among 15 private banks
BANK PASARGAD The Millennium Bank 15
Market Share Bank Pasargad market share among all 30 Iranian banks (as of 20 Nov. 2016):
Bank Pasargad is a full licensed bank in Iran providing a wide range of Deposits: 4.22 % banking services in both local and foreign currencies in compliance with international Facilities Granted: 4.93 % and local laws and regulations. Letters of Credit: 11.57%* Third among all Iranian banks Attention to quality of service, dedication of both Guarantees: 5.11%* Sixth among all Iranian banks management and staff, high banking standards and observation of international Investments: 4.42%* Ninth among all Iranian banks principles are few reasons for which Bank Pasargad has achieved significant * Based on 19/03/2016 data milestones in its brief history.
BANK PASARGAD The Millennium Bank 16
Net Profit of 15 Iranian private banks (as of 20 March 2015):
IRR m. Pasargad 12,642,696 Karafarin 14,000,000 E.N Ansar 12,000,000 Day Sina 10,000,000 Average Shahr Saman 8,000,000 Parsian Middle East 6,000,000 Hekmat Iranian 3,701,997 3,676,611 3,246,256 Sarmayeh 4,000,000 2,398,375 2,351,471 Gardeshgary 1,794,314 Iran Zamin 1,011,340 848,518 2,000,000 2,074,931 975,049 398,769 56,927
0 1 (73,086) (786,315) (1,118,963) -2,000,000
BANK PASARGAD The Millennium Bank 17
Adherence & Compliance to International Regulations
We fully adhere and comply to all mandatory international legislation
Bank Pasargad has adopted a zero tolerance policy with regards to bribery, corruption, money laundering and non-observance of sanctions
Responsibility, Ethics, Transparency & Equity are the 4 essential pillars of Bank Pasargad Corporate Governance
Commitment to Anti-Money Laundering (AML) laws and regulations
Observance of all Central Bank of Iran regulations, requirements and directives
Educated, well trained and resourceful Compliance Department
Appointment of an Independent Auditor & Legal Inspector
Support of transparency and disclosure of information
BANK PASARGAD The Millennium Bank 18
Adherence & Compliance to Domestic Regulations
Bank Pasargad is committed to the observance of:
Monetary and Banking Law (Approved in 1972) and its amendments
Usury-Free Banking Law (Approved in 1983)
Money and Credit Council By-Laws
Central Bank of Iran regulations and requirements
Iranian Tax Law
Securities Market Law of Iran
Bank Pasargad’s Articles of Association
Anti-Money Laundering Act (Approved in 2007)
Annual Monetary Financial and Supervisory Policies of Central Bank of Iran
BANK PASARGAD The Millennium Bank 19
Changes in Capital
Our Unique History of Success in the Iranian Economy:
Capital Changes (Dates) Increase (Billion IRR) Total (Billion IRR)
Initial Capital (2005) 3,500 3,500 Capital Increase (2007) 1,750 5,250 Capital Increase (2008) 1,750 7,000 Capital Increase (Nov 2009) 700 7,700 Capital Increase (Nov 2010) 15,400 23,100
Capital Increase (13 March 2012) 4,158 27,258 Capital Increase (13 March 2013) 2,742 30,000
Capital Increase (4 August 2015) 12,000 42,000
Capital Increase (20 July 2016) 8,400 50,400
In the Extraordinary General Assembly dated 22/07/2014, it was approved to increase Bank Pasargad’s Paid-Up capital to 100,000 billion Iranian Rial.
BANK PASARGAD The Millennium Bank 20
Bank Pasargad is a private bank with a shareholding (As of 20 Dec. 2016) structure composed of real and legal entities Shareholding Structure Pars Aryan Investment Co. (PLC) 1 Company Between 3 – 5 % Ownership (%) Milad Gostar Noavaran Co. (JSC) – 3.69% 9.88 Kharazmi Investment Co. (PLC) – 3.69% Sam Group Co. (JSC) – 3.75% 5 Companies Hordad Rayan Co. (JSC) – 4.63% Nik Andishan Soroush Fajr Co. (JSC) – 4.78% 20.54 Between 1 – 3 % Nazm Avaran Pouya Iranian Co. (JSC) – 1.01% Baroghe Omid Iranian Co. (JSC) – 1.04% Hamyari Kowsar Employee Fund – 1.63% Omid Employee Fund – 1.88% Hamghadam Trade Co. (JSC) – 2.24% Sahab Omid Iranian Co. (JSC) – 2.29% Real Person – 2.54% Selin Investment Advisory Co. (JSC) – 2.54% Binesh Pashooh Iranian Co. (JSC) – 2.58% 40.70 Real Person – 2.58% Saba Capital Management Co. (JSC) – 2.81% Danesh Gostaran Atisaz Pouya Co. (JSC)– 2.83% 56,318 Pasargad Tamin Atieh Co. – 2.91% Individuals & 28.88 Below 1 % Legal Entities 13 Companies & 30.60% of the bank’s shares are owned by real entities and 69.40% of shares are owned by legal entities. Individuals 3 Pension Funds of other Iranian banks are major shareholders of Bank Pasargad.
BANK PASARGAD The Millennium Bank Organizational Chart 21
General Assembly Credit Committee Credit Risk Supervisory Risk Sub-Committee Management Committee Human Capital Development Market Risk Legal Auditors High Committee Sub-Committee Nomination Committee Technology & IT Committee Board of Directors Crisis & liquidity Risk Strategy Committee Sub-Committee
President Recruitment Committee Operational Risk Audit Committee Sub-Committee Executive Vice- Innovation Committee Internal Audit Management Board President
Public Relations Managing Audit Dept. Management Dept. Bureau Dept. Disciplinary Committee Foreign Assets & Investment Management Anti-Money Marketing & Advertisement Laundering Dept. Department Committee Inspection Management Dept. Assets & Liabilities Advisors Inspection Dept. Management Committee
Human Capital R & D and Legal Affairs Deputy Deputy Deputy Deputy Deputy Deputy Development Marketing Deputy Management Management Management Dept. Credits Dept. Dept. Branch Planning & Financial International Logistics & & Loans Risk Manage Affairs Program IT Mang. Affairs Mang. Treasury Mang. Dept. Employee General Mang. Mang. Dept. Mang.Dept. Research & Dept. Mang. Dept. Affairs Dept. Legal Services Assembly & Dept. Dept. Dept. Development FOREX Economic Dept. Dept. Subsidiaries Dept. Credit Dept. Provinces Organization, Accounting Operat. and Banking Planning Procurement Software Employee branches Methods & & Mang. Studies Management Dept. Dept. Follow up & Well-being Dept. affairs Dept. Planning Budgeting Dept. Dept. Dept. Collection Deeds Dept. Dept. Investment & East Tehran L/C Dept. Compliance Marketing Dept. Enforcement Security Hardware Credit participation Dept. branches Treasury Dept. Education Dept. Dept. Dept. Dept. Information affairs Dept. Dept. PO, Guarantee Dept. and FX West Tehran Private & Real Estate Accounting branches Corporate Dept. Dept. BANK PASARGAD The Millennium Bank affairs Dept. Banking Dept. 22
Board of Directors
Seyed Kazem Mirvalad Majid Ghassemi Kamran Ekhtiar
Chairman of the Board of Directors Vice Chairman of the Board of Directors Board Member Tel: (+9821) 82891002 Tel: (+9821) 82890 Tel: (+9821) 82891017 Fax: (+9821) 88649234 Fax: (+9821) 88649233 Fax: (+9821) 88649234 Email: [email protected] Email: [email protected] Email: [email protected]
Ahmad Vadidar Mostafa Beheshti Rouy Zabihollah Khazaei
Board Member Board Member Board Member & Planning Affairs Tel: (+9821) 82891011 Tel: (+9821) 82891019 Tel: (+9821) 82891013 Fax: (+9821) 88649234 Fax: (+9821) 88649234 Fax: (+9821) 88649234 Email: [email protected] Email: [email protected] Email: [email protected]
Davoud Mojtahed
Board Member Tel: (+9821) 88573884-7 Fax: (+9821) 88573888 Email: [email protected]
BANK PASARGAD The Millennium Bank 23
Executive Board Members
Majid Ghassemi Zabihollah Khazaei Kamran Ekhtiar
Chief Executive Officer Executive Board Member in charge of Financial Executive Board Member in charge of Loan Tel: (+9821) 82890 & IT Affairs & Credit Affairs Fax: (+9821) 88649234 Tel: (+9821) 82891019 Tel: (+9821) 82891017 Email: [email protected] Fax: (+9821) 88649234 Fax: (+9821) 88649234 Email: [email protected] Email: [email protected]
Ahmad Vadidar Mostafa Beheshti Rouy Gholam Hossein Vahidnia Executive Board Member in charge of Bank’s Executive Board Member in charge of International Executive Board Member in charge of Branches Banking Affairs Bank’s Logistic Affairs & Planning Affairs Tel: (+9821) 82891011 Tel: (+9821) 82891015 Tel: (+9821) 82891013 Fax: (+9821) 88649234 Fax: (+9821) 88649234 Fax: (+9821) 88649234 Email: [email protected] Email: [email protected] Email: [email protected]
Mohammad Reza Hajian
Executive Board Member in charge of Risk & Strategic Planning Tel: (+9821) 82895151 Fax+9821) 88675149 Email: [email protected]
BANK PASARGAD The Millennium Bank 24
Branches Bank Pasargad has successfully expanded its network to 327 domestic branches in a short period of time:
Item 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Number of 11 82 150 202 233 268 296 297 326 327 327 branches
350
300
250
200 Number of branches 150
100
50
0 2006-2005 2008-2007 2010-2009 2012-2011 2014-2013 2016-2015
BANK PASARGAD The Millennium Bank 25
Electronic Banking Services At Bank Pasargad, only 4.05% of all transactions (approximately 23 million per week) are done at branches.
Approximately 96% of all our clients’ transactions are done electronically eithers by mobile applications, ATM, POS and other electronic and virtual banking devices. 1.15% 4.05%
At Branches Total Banking Transactions Electronic Banking Channels (as of 20 Dec. 2016)
Virtual Banking
94.80% BANK PASARGAD The Millennium Bank Electronic Banking Services 26
Virtual Banking Services,
Online Banking Services,
SMS Banking Services,
Telephone Banking Services,
Email Banking Services,
Mobile Banking Services,
Card Services Include:
Student Card Cash Card Joint Card Gift Card Credit Card
Health Card Family Card Shopping Card Debit Card Travel Card
BANK PASARGAD The Millennium Bank 27
Human Capital
Bank Pasargad attributes special attention to employing highly qualified individuals as demonstrated in table below (capital for the headquarter and the branches according to their educational background and degrees).
In order to upgrade the knowledge and skills of the bank’s employees with latest changes in the global banking industry, Bank Pasargad continuously organizes in-house training courses.
Human Capital
Diploma & University Work Experience Post Graduate PHD Total Higher Diploma Graduate
0-10 Years 22 2,465 605 - 3,092
10-20 Years 18 340 72 1 431
20-30 Years 3 3 1 1 8
Over 30 Years 151 104 23 9 287
Total 194 2,912 701 11 3,818
BANK PASARGAD The Millennium Bank 28
Total Asset Growth Since commencement of its activities, Bank Pasargad has experienced steady asset growth every year
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Index 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Total Assets 56,965,020 95,025,056 122,632,927 179,227,880 221,808,446 297,081,643 377,270,230 447,388,074 534,724,988 ( Million IRR) Growth % 158.1 66.8 29 46.15 23.76 33.94 26.99 18.58 19.52
600,000,000 550,000,000 500,000,000 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
BANK PASARGAD The Millennium Bank 29
Assets and Liabilities Structure (as of 19 March 2016)
%1.90 %1.91 6.25% 1.85% %0.00 %1.07 1.18% 2.25% %3.63 %12.64 0.75% %3.38 1.35%
%70.70 86.35%
Cash Due from banks and other credit institution Call Deposits Credit Facilities Granted Term Deposits Investments Other Deposits Intangible Assets Saving Deposits Participation Certificates Other Liabilities and Accruals Accounts Receivable Due to banks and credit institutions Fixed Assets )Interest Payable (Depositors Other Assets
BANK PASARGAD The Millennium Bank 30
Total Owners’ Equity Growth
Owners’ Equity Total Owners’ Equity (Million IRR) (Million IRR) 80,000,000 75,421,134
70,000,000 63,787,293
60,000,000 52,485,378
50,000,000 45,096,339
38,416,498 40,000,000 31,387,403 30,000,000
20,000,000 12,353,712 10,129,926 7,096,491 10,000,000 4,337,896
0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
BANK PASARGAD The Millennium Bank 31
Key Performance Measures
20th March 19th March 20th March 20th March 20th March 20th March 20th March 20th March 20th March 19th March Performance 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Total Income 2,140,040 6,746,680 12,963,796 19,977,730 24,807,338 32,370,948 44,443,056 58,115,003 74,037,595 93,009,666 (Million IRR)
Profit before Tax 857,368 1,679,670 2,446,123 3,548,255 6,309,426 10,159,820 14,189,140 16,870,289 13,952,482 12,136,193 (Million IRR) Total Equity 4,337,896 7,096,491 10,129,926 12,353,712 31,387,403 38,416,498 45,096,339 52,485,378 63,787,293 75,421,134 (Million IRR)
Total Income (Million IRR) Profit before Tax (Million IRR)
16Mar- 93,009,666 Mar-16 12,136,193 15Mar- 74363286 Mar-15 13,952,482 14Mar- 58115003 Mar-14 16,870,289 13Mar- 44443056 Mar-13 14,189,140 12Mar- 32370948 Mar-12 10,159,820 11Mar- 24807338 Mar-11 6,309,426 10Mar- 19977730 Mar-10 3,548,255 09 12963796 Mar- Mar-09 2,446,123 08Mar- 6746680 Mar-08 1,679,670 07Mar- 2140040 Mar-07 857,368
BANK PASARGAD The Millennium Bank 32
Key Performance Measures
20th March 19th March 20th March 20th March 20th March 20th March 20th March 20th March 20th March 19th March Performance 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Earning Per Share IRR 228 IRR 310 IRR 335 IRR 437.9 IRR 262.53 IRR 360.85 IRR 441.6 IRR 522.3 IRR 301.02 IRR 230.83 (EPS) Return on Equity 18.41 % 22.91 % 23.15 % 26.65 % 27.66 % 28.18% 31.72% 32.11% 21.75% 16.71% (ROE) Dividend Per IRR 175 IRR 200 IRR 220 IRR 300 IRR 180 IRR 230 IRR 250 IRR 320 IRR 200 IRR 160 Share (DPS) Return on Assets 3.62 % 2.85 % 2.47 % 2.75 % 4.02 % 4.91% 5.11% 4.65% 3.07% 2.37% (ROA) Capital Adequacy 28.29 % 18.02 % 15.87 % 15.91 % 23.92% 23.12% 21.47% 18.85% 17.24% 16.10% Ratio (CAR) Capital Adequacy Ratio ( % ) Return on Equity ( % ) 30 35 28.18 31.72 32.11 28.29 25 23.92 23.12 30 27.66 21.47 22.91 26.65 21.75 18.02 17.24 25 23.15 20 18.85 16.1 18.41 16.71 15.87 15.91 20 15 15 10 10 5 5 0 0 20th 19th 20th 20th 20th 20th 20th 20th 20th 19th 20th 19th 20th 20th 20th 20th 20th 20th 20th 19th March March March March March March march March March march March March March March March March March March March march 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
BANK PASARGAD The Millennium Bank 33
Financial Ratios The following table presents Bank Pasargad's main financial ratios: March March March March March March March March Indices 2009 2010 2011 2012 2013 2014 2015 2016 Capital Adequacy 15.87% 15.91% 23.92% 23.12% 21.47% 18.85% 17.24% 16.10% Capital Adequacy Equity to Assets 10.66% 10.07% 17.51% 17.32% 15.18% 13.91% 14.26% 14.10% Ratios Facilities Granted to Equity 6.32 6.15 3.49 3.57 4.03 4.33 4.31 4.55 Deposits To Equity 8 8.67 4.53 4.45 5.28 5.81 5.49 5.61 Liquidity Deposits to Assets 85% 86% 79.31% 77.14% 80.1% 80.79% 78.30% 79.12% Facilities Reserves to Total Facilities Asset Quality 2.32% 3.99% 3.79% 3.58% 3.82% 3.44% 3.90% 4.85% Granted Performance Return on Equity 23.15% 26.65% 27.66% 28.18% 31.72% 32.11% 21.75% 16.71% Ratios Facilities Facilities Granted to Total Deposits 81% 71% 77.1% 80.25 % 76.37% 74.47% 78.54% 81.13% Composition Facilities Granted to Total Assets 67.37% 62.01% 61.15% 61.91% 61.17% 60.17% 61.49% 64.18% Assets Growth 66.81% 29.05% 46.15% 23.76% 33.94% 26.99% 18.59% 19.52% Deposits Growth 69% 31% 32.70% 20.38% 39.06% 28.10% 14.92% 20.77% Growth Facilities Growth 60.98% 18.80% 44.11% 25.31% 27.28% 25.40% 25.52% 24.75% Total Income Growth 92.91% 54.10% 24.17% 30.49% 37.29% 30.76% 27.40% 25.62% Net Profit Growth 44.24% 43.78% 79.84% 62.19% 34.67% 18.29% -19.31% -7.98% Per Capita Income 6,547 8,085 8,842 10,389 13,087 16,671 20,092 24,380 Efficiency Indices Deposits to Human Capital 34,932 40,137 47,685 52,634 70,070 87,440 95,058 110,891 (Million IRR) Facilities Granted to Human Capital 28,345 30,116 38,213 43,809 53,514 65,119 74,659 89,963 BANK PASARGAD The Millennium Bank 34
Deposits Total deposits stood at IRR 423,049,252 Million on 19 March 2016 compared to IRR 350,288,790 Million on 20 March 2015 showing an increase of 20.77 percent. Description 20th March 2010 20th March 2011 20th March 2012 20th March 2013 20th March 2014 20th March 2015 19th March 2016 Total 107,123,424 142,147,511 171,112,476 237,957,554 304,815,336 350,288,790 423,049,252 (Million IRR) Deposit Structure Total Deposits Growth (Million IRR) 20th 20th 20th 20th 20th 20th 19th 450,000,000 423,049,252 Type March March March March March March March 2010 2011 2012 2013 2014 2015 2016 400,000,000 350,288,790 Call 4,928,493 9,563,852 8,985,693 17,418,558 16,759,491 13,225,850 10,293,575 350,000,000 Deposits 304,815,336 300,000,000 Saving 921,720 1,639,356 2,847,463 3,713,887 6,217,296 4,963,707 3,438,195 Deposits 250,000,000 237,957,554
Term 200,000,000 173,865,805 96,751,649 123,515,749 144,461,548 194,370,303 261,753,522 317,723,341 394,662,281 Deposits 144,745,976 150,000,000 108,684,411 Other 4,521,562 7,428,554 14,817,772 18,808,044 14,212,326 7,346,020 6,192,506 100,000,000 Deposits
Interest to 50,000,000 be paid on 1,560,987 2,598,465 2,753,329 3,646,762 5,872,701 7,029,873 8,462,695 Deposits 0 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
BANK PASARGAD The Millennium Bank 35
International Operations
Bank Pasargad provides a vast array of high quality foreign exchange services to its customers including:
Issuing documentary credits, Trade finance and project financing,
Documentary bills of exchange (Collections), Opening and maintaining of individual and corporate accounts in foreign currency,
Advice and negotiation of export documentary credits, Handling inward and outward payment orders in foreign currencies,
Issuance of letters of guarantee in foreign currency, Collection of bills / cheques in foreign currency.
BANK PASARGAD The Millennium Bank 36
Competitive Advantages
Pasargad is all about Customer Service
Excellence in Customer Service: “Our customers are the essence of the bank”
Corporate Culture – Code of Ethics & Code of Conduct
Dedicated, talented and experienced team
Geographically diversified nationwide network of branches
Issuing various credit and debit cards for different purposes
Training sessions conducted to acquaint the bank's customers with effective use of electronic services
Innovation & Vast array of high quality financial products
Size: the only private bank that can compete with national banks
Flexibility & Rapid Responsiveness
BANK PASARGAD The Millennium Bank 37
Corporate Social Responsibility (CSR)
Sponsorship of environmental project and investing in environmental educational courses
Supporting different community events and projects
Granting scholarship to first, second and third ranked applicants of the university entrance examinations each year
Establishment of Contemporary Visual Arts’ Museum on Oct 2009 and sponsorship of Art projects
Supporting National sport teams in international tournaments
Organizing athletic contests, and sport events within the banking industry
Conducting of training sessions for customers to acquaint them with effective use of E-Banking services
Annually organizes diverse ACCA, Grenoble & Nice university training courses for all Bank Pasargad Financial Group employees
The only Iranian company that annually publishes a CSR Report
BANK PASARGAD The Millennium Bank 38
Awards & Achievements 24th largest company on TSE based on Market Capitalization and Third among banks (as at 20 Dec. 2016)
Named as Best Bank in Iran, “Bank of Excellence” by Euromoney magazine for the years 2015 & 2016 Winner of the Banker’s Award as Bank of the Year 2010 , 2012 ,2013, 2014 , 2015 & 2016 in Iran Winner of the Banker’s Award as Islamic Bank of the Year 2013, 2014, 2015 & 2016 in Iran Chosen by SACE (Italian Export Credit Agency) as Issuing Bank – MOU signed subject to Implementation Day As stated by The Banker magazine for year 2016: Recognized as the world’s 362nd Top Bank (233rd in year 2014) Middle East’s 3rd bank by Return on Capital (ROC) 1st bank among all Iranian banks based on Profit before Tax Middle East’s 2nd bank based on Return on Asset (ROA)
Recognized as the world’s 175th Banking Brand in 2017 and the only Iranian bank among Top 10 banking brands in the Middle East by The Banker with brand value estimated at USD 978 million Highest Profit Increase among Iranian Banks & No. 2 Iranian Private Bank by Tier 1 Capital Received Gold Medal in World Invention Awards in UK in 2014 for “Smart Queue Management System” Winner of Iran’s Green Bank Award in 2012 Selected as Iran’s most Productive Bank Winner of the Iranian European Foundation for Quality (EFQM) Excellence Award for years 2012, 2013, 2014 & 2015 being recognized as Iran’s Top Service Sector Company. Winner of Iran’s Most Admired Knowledge Enterprise (MAKE) Award for years 2012, 2013, 2014 & 2015 being recognized as Iran’s Top Service Sector Company. Member of the Asian Bankers Association's Board of Directors BANK PASARGAD The Millennium Bank