First Credit & Investment Bank Limited · PSX:FCIBL
First Credit & Investment Bank — Investor Presentation (October 2022)
25 slides from First Credit & Investment Bank's investor presentation, Oct 28, 2022
Slide 1: First Credit and Investment Bank Limited Corporate Briefing Presentation
First Credit and Investment Bank Limited Corporate Briefing Presentation October 28, 2022 At FCIBL, 2nd Floor, SIDCO Avenue Centre, Karachi At 4:30 pm 1
Slide 2: Corporate Briefing
Corporate Briefing 1. History and Profile 2. Governance 3. Investment Banks- Problems / Challenges and FCIBL Standing 4. Financial Performance 5. Operations at FCIBL 6. Permitted Business under IFS License 7. Conclusion 2
Slide 3: History and Profile
History and Profile FCIBL was Established in 1989-90 as Joint Venture of NDFC and WAPDA with the name of First Credit & Discount Corporation (Pvt) Ltd (FCDC) The initial capital was Rs. 10 million equally contributed by NDFC and WAPDA. Subsequently, in 1995-96 with Right of issue of Rs. 25 million
Slide 4: History and Profile
History and Profile In 2006 renamed as FCIBL. During 2006 it expanded its mandate & scope by obtaining License to provide Investment Finance Services (Investment Banking). During 2008-9, it got its shares listed on Karachi Stock Exchange by floating IPO of Rs. 250 million. An Investment Bank hav
Slide 5: Governance: Board of Directors
Governance Board of Directors The Board of FCIBL consists of seasoned bankers and experienced professionals suitably diversified into Non Executive, Independent and Executive Directors. 1. Mr. Fasial Ahmed Topra - Chairman Board of FCIBL / Non Executive Director 2. Mr. Asad Ullah Saleem – Non Execut
Slide 6: Governance: Board of Directors
Governance 3. Syed Irfan Husnain Rizvi- Non Executive Director 4. Mr. Masood Raza – Non Executive Director 5. Mr. Muhammad Naeemuddin–Independent / Non Executive Director 6
Slide 7: Governance: Board of Directors
Governance 6. Mr. Jamal Nasim – Independent / Non Executive Director 7. Ms. Nina Afridi – Independent / Non Executive Director 8. Mr. Muhammad Mohsin Ali President and CEO of FCIBL 7
Slide 8: Committees of the Board: Audit Committee
Governance COMMITTEES OF THE BOARD There are three Committees of the Board of FCIBL as follows; 1. The Audit Committee a) Mr. Jamal Nasim– Chairman b) Mr. Asad Ullah Saleem – Member c) Syed Irfan Husnain Rizvi – Member d) Mr. Muhammad Naeemuddin – Member 8
Slide 9: HR & Remuneration Committee
Governance 2. The HR & Remuneration Committee a) Ms. Nina Afridi – Chairperson b) Mr. Fasial Ahmed Topra – Member c) Syed Irfan Husnain Rizvi – Member d) Mr. Muhammad Naeemuddin – Member 9
Slide 10: Risk Management Committee
Governance 3. The Risk Management Committee a) Mr. Asad Ullah Saleem – Chairman b) Syed Irfan Husnain Rizvi – Member c) Mr. Muhammad Naeemuddin – Member d) Mr. Muhammad Mohsin Ali – Member 10
Slide 11: Internal Controls and Compliance
Governance Internal Controls and Compliance FCIBL maintains high standards of governance, internal controls and risk assessment framework. Comprehensive policies and procedures have been approved by the Board covering all major spheres of operations and are reviewed and updated as per the changing r
Slide 12: Governance: Sound Internal Control Outcomes
Governance Due to sound internal control and compliance function • No adverse finding / no penalty is imposed on FCIBL • FCIBL has never defaulted to any of its financial commitment • FCIBL has never asked for any waiver/ write off or restructuring from its creditors / depositors. 12
Slide 13: Environmental and Corporate Social Responsibility
Governance Environmental and Corporate Social Responsibility FCIBL is fully aware of its environmental and Corporate Social Responsibilities and is ready to support social and environmental causes of the country. FCIBL also maintains compliance to all governmental and internal health, safety and the
Slide 14: Investment Banks - Problems / Challenges and FCIBL Standing
Investment Banks- Problems / Challenges and FCIBL Standing There are three major problems / challenges that Investment Banks in Pakistan has been facing since last many years. Liquidity Issue : Non availability of borrowing lines from Commercial Banks Competition : Throat-cut competition with Commer
Slide 15: Investment Banks - Problems / Challenges and FCIBL Standing (continued)
Investment Banks- Problems / Challenges and FCIBL Standing (continued) • Since the global financial crises of 2008, business activities of almost all the investment banks had become dormant. • Majority of investment banks incurred huge losses during the ten years period of 2008-18 aggregating to mor
Slide 16: Investment Banks - Problems / Challenges and FCIBL Standing (continued)
Investment Banks- Problems / Challenges and FCIBL Standing (continued) • Despite problems and challenges, FCIBL has been sustainable in doing its business during hard times. Its credit rating never went below investment grade. • FCIBL has been profitable since its inception in 1989-90 except losses
Slide 17: Investment Banks - Problems / Challenges and FCIBL Standing (continued)
Investment Banks- Problems / Challenges and FCIBL Standing (continued) • FCIBL built up its equity to more than Rs.400.0 million through internal profits before going to listing in August 2008. • FCIBL is gradually expanding its business activities permissible under NBF regulatory regime. 17
Slide 18: Investment Banks - Problems / Challenges and FCIBL Standing (continued)
Investment Banks- Problems / Challenges and FCIBL Standing (continued) • FCIBL has paid substantial Cash Dividend apart from Stock Dividend of Rs.365.0 million since its inception. Last cash dividend was paid for the year 2018-19 • It is the only Investment Bank which has paid Cash Dividend in the y
Slide 19: Financial Performance: Shareholders' Equity
Financial Performance Shareholders’ Equity As at June 30, 2022 Rs. In million # of Shares Amount Initial paid up capital (1989-90) 1.0 10.000 Right Issue (1995-96) 2.5 25.000 Bonus Issues (various years) 36.5 365.000 Pre-IPO Capital 40.0 400.000 IPO (August 2008) – (General Public) 25.0 250.000 Paid
Slide 20: Financial Performance (SOFP)
Financial Performance (SOFP) Particulars June 30, 2022 June 30, 2021 June 30, 2020 EQUITY & LIABILITIES ----------------- Rupees in thousand ------------------ Paid up capital 650,000 650,000 650,000 Reserves 120,840 114,708 95,027 Deficit on AFS inv (49,003) (14,757) (6,237) 721,838 749,951 738,790
Slide 21: Financial Performance (Profit & Loss)
Financial Performance (Profit & Loss) Particulars June 30, 2022 June 30, 2021 June 30, 2020 -------------- Rupees in thousand ---------------- INCOME 134,082 145,036 154,763 OPERATING PROFIT (1,770) 17,006 35,332 PROFIT BEFORE 13,312 28,846 37,810 TAX PROFIT AFTER TAX 8,189 20,535 28,703 21
Slide 22: Operations at FCIBL
Operations at FCIBL FCIBL’s existing business activities consist mainly of the following operations. - Corporate & Investment Banking Activities - Treasury & Money Market Activities - Arbitrage Business - Capital Market Activities - Fee Oriented Business FCIBL will further expand its core operations
Slide 23: Permitted Business under IFS License
Permitted Business under IFS License As permitted under the NBFC regulatory regime, FCIBL being the license holder of Investment Finance Services is also permitted to undertake; Leasing Business Housing Finance Services Discounting Services Money Market Brokerage Business During the FY 2021-
Slide 24: Conclusion
Conclusion FCIBL’s performance since its inception has been satisfactory. The Board and management has always adopted prudent approach for It has in place sound internal controls, risk management system and significant policies. Despite many challenges being faced, FCIBL has been able to operate at
Slide 25: Thank You
THANK YOU First Credit And Investment Bank Lrd. 25
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