Complete Annual Report 2005
Total Page:16
File Type:pdf, Size:1020Kb
Contents Vision 02 Mission 02 Core Values 03 Corporate Information 04 Financial Highlights - 2005 07 Six Year Performance at a Glance 08 Board of Directors 10 Senior Management 11 Notice of 57th Annual General Meeting 12 Statement Under Section 160 of The Companies Ordinance, 1984 14 Directors’ Report 16 Statement of Compliance with Code of Corporate Governance 21 Auditors’ Review Report to the Members 23 Auditors’ Report to the Members 24 Financial Statements - 2005 Balance Sheet 26 Profit & Loss Account 27 Cash Flow Statement 28 Statement of Changes in Equity 29 Notes to the Financial Statements 30 Pattern of Shareholding 84 Categories of Shareholders 86 Head Office Management 88 Domestic Operations 96 Overseas Operations 106 Form of Proxy We’re Expanding horizons, reaching out, being there, bringing something for Everyone Our vision is that we want to be the pre-eminent financial institution in Pakistan and achieve market recognition both in quality and delivery of service as well as the range of product offering. Our mission to be recognized in the market place by institutionalizing a merit and performance culture, creating a powerful and distinctive brand identity, achieving top-tier financial performance, and adopting and living out our core values. & following values to deliver to you. We aim to be an organization that is founded on: Growth through creation of sustainable relationships with our customers Prudence to guide our business conduct A national presence with a history of contribution to our communities We shall work to: Meet expectations through market-based solutions and products Reward entrepreneurial efforts Create value for all our stakeholders We aim to be people who: Care about relationships Lead through the strength of our commitment and willingness to excel Practice integrity, honesty and hard work. We believe that these are measures of true success We have confidence that tomorrow we will be: Leaders in our industry An organization maintaining the trust of our stakeholders An innovative, creative and dynamic institution responding to the changing needs of the internal and external environment After all, we are The Nation’s Bank Corporate Information Board of Directors Syed Ali Raza Chairman & President Dr. Waqar Masood Khan Iftikhar Ali Malik Syed Shafqat Ali Shah Jamote M. Zubair Motiwala Sikandar Hayat Jamali Muhammad Khalid Malik Azam Faruque Audit Committee Syed Shafqat Ali Shah Jamote Chairman Iftikhar Ali Malik M. Zubair Motiwala Auditors KPMG Taseer Hadi & Co. Chartered Accountants Ford Rhodes Sidat Hyder & Co. Chartered Accountants Legal Advisors Mandviwala & Zafar Advocates & Legal Consultants Registered & Head Office NBP Building I. I. Chundrigar Road, Karachi, Pakistan. Registrar's & Share Registration Office THK Associates (Pvt.) Ltd. Shares Department, Ground Floor, Modern Motors House, Beaumont Road, Karachi, Pakistan. 04 ATM plus Debit Card in one One Card does it all Affordable Installments from 1-60 months Take upto 15 advance salaries (currently for NBP account holders of govt. or related organization employees). Financial Highlights - 2005 (Rs. In Million) Authorized Capital 7,500 Paid-up Capital 5,909 Shareholders' Equity And Reserves 74,341 Deposits 463,427 Advances - Net 268,839 Investments - Net 156,986 Total Assets 577,719 Pre-tax Profit 19,056 After-tax Profit 12,709 No. of Branches 1,242 No. of Employees 13,824 07 Six Year Performance at a Glance (Rs. In Million) Total Assets Deposits Advances Investments Shareholders’ Equity 2000 371,636 316,493 140,318 72,609 11,378 2001 415,089 349,617 170,319 71,759 11,959 2002 432,803 362,866 140,547 143,525 14,279 2003 468,972 395,492 161,266 166,196 18,134 2004 553,231 465,572 220,794 149,350 24,900 2005 577,719 463,427 268,839 156,986 36,158 Total Assets Deposits 600000 577,719 600000 553,231 500000 468,972 500000 465,572 463,427 415,089 432,803 395,492 400000 371,636 400000 362,866 316,493 349,617 300000 300000 (Rs. In million) (Rs. In million) 200000 200000 100000 100000 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Advances Shareholders’ Equity 300000 42000 268,839 36,158 250000 35000 220,794 200000 28000 24,900 170,319 161,266 140,318 140,547 150000 21000 18,134 (Rs. In million) (Rs. In million) 14,279 100000 14000 11,378 11,959 50000 7000 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 08 Six Year Performance at a Glance (Rs. In Million) Pre-Tax After-Tax Earnings Per Return on Assets Number Number Profit Profit Share (Rs) (Pre-Tax Profit) of Branches of Employees 1,032 461 1.24 0.3% 1,428 15,351 3,016 1,149 3.08 0.8% 1,245 15,163 6,045 2,253 5.49 1.4% 1,204 12,195 9,009 4,198 8.53 2.0% 1,199 13,272 11,978 6,195 10.48 2.4% 1,226 13,745 19,056 12,709 21.51 3.4% 1,242 13,824 Pre-Tax Profit After -Tax Profit 12,709 22000 13000 19,056 18000 11000 9000 14000 11,978 7000 6,195 10000 9,009 (Rs. In million) (Rs. In million) 5000 6,045 4,198 6000 3,016 3000 2,253 1,149 2000 1,032 1000 461 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 Earnings Per Share Return on Assets (Pre-tax profit) 3.4% 24 21.51 3.5 21 3.0 18 2.4% 2.5 15 2.0% 2.0 12 10.48 1.4% Rupees 1.5 8.53 Percentage 9 5.49 1.0 0.8% 6 3.08 0.3% 3 1.24 0.5 2000 2001 2002 2003 2004 2005 2000 2001 2002 2003 2004 2005 09 Board of Directors S. Ali Raza Chairman & President Dr. Waqar Masood Khan Iftikhar Ali Malik Syed Shafqat Ali Shah Jamote M. Zubair Motiwala Sikandar Hayat Jamali Muhammad Khalid Malik Azam Faruque 10 Senior Management Masood Karim Shaikh SEVP & Group Chief, Corporate & Investment Banking Group Shahid Anwar Khan SEVP & Group Chief, Commercial Banking Group Dr. Asif A. Brohi SEVP & Group Chief, Operations Group Imam Bakhsh Baloch SEVP & Group Chief, Audit & Inspection Group Ziaullah Khan SEVP & Group Chief, Compliance Group Dr. Mirza Abrar Baig SEVP & Group Chief, Human Resources Management & Administration Group Amer Siddiqui SEVP & Group Chief, Retail Banking Group Muhammad Nusrat Vohra SEVP & Group Chief, Treasury Management Group Syed Farhan Ahmed EVP & Chief Financial Officer Ekhlaq Ahmed EVP & Secretary Board of Directors Amim Akhtar EVP & PSO to the President Mrs. Khurshid Maqsood Ali EVP & Divisional Head, Employees Benefits, Disbursements & Trustee Division Nadeem Anwar Ilyas EVP & Divisional Head, Special Assets Management Division Tahira Raza EVP & Group Chief (A), Risk Management Group Tahir Yaqoob EVP & Group Chief, Overseas Coordination & Management Group Mrs. Uzma Bashir Group Chief, Organization Development & Training Group Atif Hassan Khan Group Chief (A), Information Technology Group 11 Notice of 57th Annual General Meeting Notice is hereby given that the 57th Annual General Meeting of National Bank of Pakistan, will, InshaAllah, be held on Thursday, the 27th April, 2006 at 3:00 P.M. (PST), at Crystal Ball Room, Marriott Hotel Karachi. The following business will be transacted in the meeting: Ordinary Business: 1. To receive and adopt the Audited Accounts of the Bank for the year ended 31st December, 2005, together with the Directors' & Auditors' Reports thereon. 2. To appoint auditors for the year ending 31st December, 2006 and fix their remuneration. 3. To consider and approve Cash Dividend @ 25% and Bonus Shares @ 20% (thereby increasing Paid-up Capital of the Bank from Rs. 5,908,927,460/- to Rs.7,090,712,950/-) as recommended by the Board of Directors for the year ended 31st December, 2005 (subject to Government of Pakistan / Regulatory approvals). Special Business: 4. To ratify the revision / enhancement of the Directors' remuneration / fee Package. 5. To approve / ratify the donations recommended / approved by the Board / Bank's Management, by passing the following ordinary resolution(s): "RESOLVED THAT the donation of Rs.231,342.72, being the net sale proceeds of 1,377 fractional Bonus Shares - 2004 to a Charitable Trust / Welfare Association, name of which will be approved by the President (NBP), be and is hereby approved." "FURTHER RESOLVED THAT the decisions taken by the Management / Board towards approving following donations, be and are hereby ratified. - President’s Relief Fund for Earthquake - 2005: Rs.100,000,000/- - Establishment of Tent City by Zindagi Trust for Earthquake Victims: Rs. 5,983,000/- - Supply of relief goods to the earthquake affected areas: Rs. 1,836,101/- Total Rs.107,819,101/-” (Statement under Section 160 of The Companies Ordinance, 1984 in respect of Special Business is enclosed with the notice sent to Bank's shareholders.) 6. To transact any other business with the permission of the Chairman. By Order of the Board Sd/- Karachi. (S. Ali Raza) Date: April 04, 2006 President 12 Notice of 57th Annual General Meeting Note: i) The Share Transfer Books of the Bank shall remain closed from 15-4-2006 to 27-4-2006 (both days inclusive). Transfers received at Messrs THK Associates (Pvt) Ltd., Ground floor, Modern Motors House, Beaumont Road, Karachi, the Bank's Registrar and Share Transfer Agent, at the close of the business on 14-4-2006 will be treated in time for purpose of the entitlement of Cash Dividend / Bonus Shares. ii) A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as a proxy to attend and vote on his / her behalf. The Government of Pakistan and State Bank of Pakistan and any Corporation(s), being member of the Bank, may nominate any person as its representative to attend the Annual General Meeting under authority of a Power of Attorney or a Board of Directors' Resolution.