First Credit & Investment Bank Limited · PSX:FCIBL
First Credit & Investment Bank — Investor Presentation (September 2023)
26 slides from First Credit & Investment Bank's investor presentation, Sep 30, 2023
Slide 1: Corporate Briefing Presentation
First Credit and investment Bank Limited Corporate Briefing Presentation September 30, 2023 At FCIBL, 2nd Floor, SIDCO Avenue Centre, Karachi At 11:30 am 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 8. Q & A 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
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 of Board of FCIBL / Non Executive Director 2. Syed Irfan Husnain Rizvi Non Exec
Slide 6: Governance
Governance 3. Mr. Asad Ullah Saleem Non Executive Director 4. Mr. Masood Raza Non Executive Director 5. Mr. Jamal Naseem Independent / Non Executive Director 6
Slide 7: Governance
Governance 6. Ms. Nina Afridi Independent / Non Executive Director 7. Mr. Amjad Iqbal Independent / Non Executive Director 8. Mr. Muhammad Mohsin Ali President and CEO of FCIBL 7
Slide 8: Governance: Committees of the Board
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) Syed Irfan Husnain Rizvi – Member c) Mr. Asad Ullah Saleem – Member 8
Slide 9: Governance: 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 9
Slide 10: Governance: Risk Management Committee
Governance 3. The Risk Management Committee a) Mr. Asad Ullah Saleem - Chairman b) Mr. Masood Raza - Member c) Mr. Amjad Iqbal - 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 Controls
Governance Due to sound internal control and compliance function • 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. • No adverse findings 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 have been facing since last many years. Liquidity Issue : Non availability of borrowing lines from Commercial Banks Competition : Throat-cut competition with Comme
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 since the global financial crises of 2008 till 2018 aggre
Slide 16: FCIBL Standing: Credit Rating and Profitability
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. Rather, its medium to long term rating was upgraded during 2020-21 to ‘A’
Slide 17: FCIBL Standing: Equity Build-up
Investment Banks- Problems / Challenges and FCIBL Standing (continued) • FCIBL built up its equity to more than Rs.400 million through internal profits before going to listing in August 2008. • FCIBL is gradually expanding its business activities permissible under NBFC regulatory regime. 17
Slide 18: FCIBL Standing: Dividends Paid
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. • It is the only Investment Bank which has paid Cash Dividend in the year 2019 after such a long time, despite facing c
Slide 19: Financial Performance: Shareholders' Equity
Financial Performance Shareholders’ Equity As at June 30, 2023 (Rs. In million) No. 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
Slide 20: Financial Performance (SOFP)
Financial Performance (SOFP) Particulars June 30, 2023 June 30, 2022 June 30, 2021 EQUITY & LIABILITIES ----------------- Rupees in thousand ------------------ Paid up capital 650,000 650,000 650,000 Reserves 127,706 120,840 114,708 Deficit on AFS inv (53,793) (49,003) (14,757) 723,913 721,838 749,9
Slide 21: Financial Performance (Profit & Loss)
Financial Performance (Profit & Loss) Particulars June 30, 2023 June 30, 2022 June 30, 2021 -------------- Rupees in thousand ---------------- INCOME 279,322 134,082 145,036 OPERATING PROFIT 1,669 (1,770) 17,006 PROFIT BEFORE TAX 30,434 13,583 29,435 PROFIT AFTER TAX 12,994 8,189 20,535 21
Slide 22: Operations at FCIBL
Operations at FCIBL FCIBL’s existing business activities consist mainly of the following operations. - Corporate Finance Activities - Investment Banking Activities - Treasury & Money Market Activities - Arbitrage Business - Capital Market Activities - Fee Oriented MM & FX Brokerage Business 22
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 which it has in placed sound internal controls, risk management system and significant policies. Despite many challenges being faced, FCIBL has been able to oper
Slide 25: Q&A
Q&a First Credit And Investment Bank Ltd. 25
Slide 26: Thank You
THANK YOU First Credit And Investment Bank Ltd.
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