Annual Report 2019 JS Bank Is One of the Fastest Growing Banks in Pakistan, with 360 Branches in 180 Cities Including One International Branch
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Annual Report 360 Branches in 180 Cities Annual Report 2019 JS Bank is one of the fastest growing banks in Pakistan, with 360 branches in 180 cities including one international branch. The Bank is a leader in the digital banking space and in distribution of insurance solutions. JS Bank has been recognized on multiple international and national forums including the prestigious AsiaMoney, Asian Banking and Finance, DIGI and Pakistan Banking Awards. The Bank is part of JS Group, one of Pakistan’s most diversified and progressive financial services groups. 03 Vision CONTENT 03 Mission 04 Corporate Values Organizational Overview 06 Products and Services 09 Company Information 10 Profile of the Board of Directors 13 Organizational Structure 14 Entity Credit Rating 15 Corporate Profile of the Bank 16 Chairman’s Review Performance & Position 18 Financial Performance 2014 - 2019 19 Graphical Presentation of Financial Statements 20 Advances by Segment 21 Funding Mix 22 Non-Performing Loans 23 Investments 24 Quarterly Performance - 2018 & 2019 25 Analysis of Capital Adequecy Ratio 26 Six Years’ Financial Performance / Financial Ratios 27 DuPont Analysis 28 Summary of Cash Flows 28 Free Cash Flows 29 Markup & Non Markup Income 30 Economic Value Added Statement 31 Six Years’ Vertical Analysis 32 Six Years’ Horizontal Analysis 33 Segment Analysis 34 JS Bank Calendar of Major Events during 2019 Strategy & Resource Allocation Unconsolidated Financial Statements 35 Rationale towards Strategic Objectives 94 Auditors’ Report to the Members 35 Strategy and KPIs for Strategic Objectives 100 Unconsolidated Statement of 36 Strategy to Overcome Liquidity Problem Financial Position 101 Unconsolidated Profit and Loss Account 102 Unconsolidated Statement of Risk and Opportunities Comprehensive Income 37 Risk Management Framework 103 Unconsolidated Statement of 37 Risk Governance Structure Changes in Equity 39 Directors Report 104 Unconsolidated Cash Flow Statement 105 Notes to the Unconsolidated Corporate Governance Financial Statements 58 Board Composition 59 Board Audit Committees Consolidated Financial Statements 63 Management Committees 207 Directors’ Report on Consolidated 71 IT Governance Financial Statements 74 Sustainability & Corporate 211 Auditors’ Report to the Members Social Responsibility 217 Consolidated Statement of Financial Position 76 Green Office Certification 218 Consolidated Profit and Loss Account 219 Consolidated Statement of Stakeholders Relationship & Engagement Comprehensive Income 77 Stakeholders Engagement 220 Consolidated Statement of Changes in Equity 78 Investor Relation Section on 221 Consolidated Cash Flow Statement Corporate Website 222 Notes to the Consolidated 78 Steps to Encourage Minority Financial Statements Shareholders Participation in AGM 337 Annexure I 79 Code of Conduct 338 Annexure II 89 Independent Auditor’s Review Report 339 Branch Network 90 Statement of Compliance with listed 346 Pattern of Shareholding companies (CCG Regulations, 2019) 348 Notice of 14th Annual General Meeting Form of Proxy Vision To be the most innovative, customer centric and responsible bank in Pakistan. Mission Our mission is to be a world class bank providing innovative financial services to our customers through a motivated team of professionals, supported by the latest technology, whilst maintaining high ethical standards, creating value for all our stakeholders, and contributing to the society through responsible and sustainable development. 3 Annual Report 2019 Corporate Values Integrity Customer Centricity Teamwork Professional Excellence Innovation Annual Report 2019 4 Innovation Awards 5 Annual Report 2019 Products and Services JS Current Deposit Products JS SMS Alerts For complete day-to-day banking needs, JS Current JS Bank continually updates its valued customers with Deposit menu is designed to provide our valued financial transaction and information alerts via SMS. customers with transactional convenience and flexibility for all their financial dealings. JS Digital Banking Products and Services JS Savings Deposit Products JS Mobile and Internet Banking solutions offer customers unprecedented control over their JS Bank offers a wide array of savings products that transactions. Customers can make real time payments, cater to short term investment and transactional needs. set up standing instructions and even find their favorite discounts with a few clicks. JS Term Deposit Products JS Debit Card offers customers the latest dynamic chip- JS Term Deposits offer attractive short and medium to based Debit Cards which allow customers to have long-term investment options with flexibility, unmatched convenience, enhanced security and convenience and security. With various tenor options, round-the-clock accessibility to their funds. JS Debit customers can choose the one that suits their needs. Cards are accepted at ATMs and merchants worldwide. JS Private Banking As part of its drive to digitize Public to Government (P2G) payments, JS Bank partnered with KPK & JS Private Banking takes our customers on a journey of Islamabad Traffic Police for issuance and payment of rewarding experiences and a diverse product suite of Digital challan. JS Bank facilitates over 6 million annual deposits, lending and investment solutions. traffic violations through instant fine payment and JS Agri Financing Products real-time SMS-based notifications. JS Bank has also digitized the driving license fee process for all districts Agriculture finance business of the Bank has embraced of KPK. a new & progressive outlook as a result of various initiatives. A well-equipped, trained & experienced JS Mobile Wallet team has been put in place to facilitate customers on JS Mobile wallet allows users to open instant mobile their door steps. wallet by downloading the J-Cash wallet app. The JS Consumer Lending Products wallet offers customers state of the services including funds transfers, bill payments, mobile recharge, online JS Consumer Banking offers a full suite of consumer payments and e-commerce opportunities. The wallet lending products to its valued customers. The Bank’s can be topped up via multiple channels including current product portfolio consists of credit cards, auto physical locations (JCash Agents/JS Bank branches) or loans, home loans and personal loans. digital means (IBFT). JS Call Centre JS Bank is one of the leading players in Government to Public (G2P) payments. From remote areas of JS Bank offers customers a 24/7 call centre designed to Baluchistan to Interior Sindh and from Gilgit Baltistan enhance service delivery and support across multiple to along the Line of Control, JSBL agents have serviced channels. JS Call Center is equipped with trained BISP, Ehsas Kifalat, EOBI Pension and Khidmat Card professionals who offer a wide array of information Program beneficiaries in all provinces and territories of and problem resolution support around the clock. The Pakistan. customers are further facilitated through self-service modes like Interactive Voice Response (IVR) and JS ATMs Telephonic Personal Identification Number (TPIN). JS Bank has a widespread ATM network placed at both Bank branches and commercial locations for Annual Report 2019 6 consumers’ convenience. JS ATMs provide customers facilities, including SBP initiatives offering rebated with 24-hour convenience to withdraw cash, view loans to specific target segments. mini-statement, make fund transfers and much more. JS Green Financing Home Remittances JS Bank offers Solar Panel financing solutions to JS Bank offers customers a multitude of Home individuals and businessmen for residential, agriculture Remittance offerings and is committed to contribute and commercial needs. As one of Pakistan’s leading towards the national interest of promoting remittances Banks in green financing, JS Bank ensures end to end through legal channels. In 2019, JS Bank continued to comprehensive installation of solar solutions through increase its market share and facilitated Pakistanis a network of over 40 AEDB-certified partners across across the world. Pakistan. JS Bank is the first bank in Pakistan which allows Employee Banking and Cash Management remittances to be sent to any cell number domestically in alliance with international remittance partners. JS Bank offers superior payroll and Cash Management Remittances can be collected from any JCash agent or solutions to corporate across Pakistan. In addition to through ATM/Debit Card. the best set of product features, our payroll customers enjoy unmatched rates on consumer loans and Foreign Currency Accounts facilities such as Advance Salary & Charge Cards. JS Bank customers can save in any foreign currency JS GoldFinance accounts and enjoy attractive returns. A wide range of account types are offered for personal and business JS Bank is one of the leading banks offering loans clients. against gold ornaments for business and agricultural requirements. The Bank provides one of the most swift Safe Deposit Lockers turnaround times, with loans being processed as quick as 100 minutes from the time of application. We pride ourselves in offering our customers ease of mind and this is yet another service that highlights our commitment in providing everything necessary to accommodate their needs. We offer various types of lockers depending on customer requirement to protect their documents, jewellery or any other valuables. Corporate Banking The JS Corporate Banking team is focused on providing a range of diverse financial services (including tailor made