Presentation on theme: "Bank Pasargad The Millennium Bank January 2011"— Presentation transcript:
1 Bank Pasargad The Millennium Bank January 2011 No. 430 Mirdamad Blvd., Tehran , IranTel: (+9821) ; Fax: (+9821)Website:Swift: BKBPIRTH
2 BANK PASARGAD Table of Content Electronic Banking Services The Millennium BankBANK PASARGAD3 Summary Timeline of Bank Pasargad’s Establishment5 Introduction6 Vision and Mission8 Shareholders9 Organization Chart10 Facts and Figures11 Awards & Achievements13 Executive Board of Directors16 Extensive Network of Bank Pasargad’s Geographic Coverage18Electronic Banking Services19 Subsidiaries and Affiliates20 Human Capital21 Human Capital Training Courses22Public & Educational Activities24 Overview of Bank Pasargad's Financial Results25 Bank Pasargad’s Competitive Advantages33 Key Performance Measures40 Foreign Exchange Operations
3 BANK PASARGAD Summary Timeline of Bank Pasargad's Establishment The Millennium BankJune 2005Establishment of Pars Aryan Holding Co. as the founder and major shareholder of Bank Pasargad2nd Aug 2005Initial Public Offering (The IPO) of Bank Pasargad's stock, was received very well by the public so that the initial intended capital was fully subscribed in less than 2 hours and after consulting with the Central Bank of The Islamic Republic of Iran (CBI) the decision was made to continue the offering up to the close of the same day4th Sep 2005Bank Pasargad registered with the Companies Registrar Office in Tehran (Registration No )13th Sep 2005Banking operation's license No. H/2849 granted by the CBI14th Sep 2005Inauguration of The Bank.13th Dec 2005Start up of the first branch.7th Feb 2006License for international banking operations was granted as per category I & II of CBI’s circular No. 1096/MB.12th Dec 2006License for full international banking operations granted by the CBI3
4 BANK PASARGAD Bank Pasargad’s Major Shareholder The Millennium BankPars Aryan Investment Co. (Plc) was initially incorporated under the name of “Minoo Industrial Group Investment Co., (Ltd)” on Oct 2nd , In June 2005 the company was taken over by founders of Pasargad Financial Group as first step in establishment of “Bank Pasargad”, the biggest private bank in Iran.Preparation of the legal and administrative procedures for presentation of Bank Pasargad’s shares in I.P.O. market was the first step taken by Pars Aryan, after which, Pars Aryan acted as the main market maker for Bank Pasargad’s shares and other affiliates in Bank’s OTC market.Pars Aryan Investment Company (founder), holding 29.70% of Bank Pasargad’s share ,is a private investment company whose shareholders come from all sectors of economy and diversified classes such as private individuals, investment companies, pension funds, EPC companies, Building/Construction Societies, auto industry, professional people namely top elite physicians, university professors and lawyers, whose presence as some of the founders was a value to the group.The initial capital of the Pars Aryan Investment Co. at the time of take over was 1,000 billion IRR and now it is increased up to 2760 billion IRR.
5 BANK PASARGAD Introduction The Millennium BankBank Pasargad as a full licensed bank provides all banking services in local and foreign currency in compliance with international and local rules and regulations to her distinguished clients. The bank's reputation of quality services and performance in line with the international principles and world's high banking standards, have resulted in several achievements namely: Market Share of more than 5% in Iran’s banking system in less than 4 years Market Share of 20% among Iranian private banks, 4 of them established 5 years earlierBank Pasargad as the fastest growing private bank:Dec 2005Started activity as the 6th Iranian private bankJuly 2009Promoted to stand as the 1st Iranian private bankTarget for 2013Is planned to be the 1st bank in the Middle East
6 BANK PASARGAD Our Vision Vision & Mission The Millennium BankOur VisionWe, at Bank Pasargad strive to reach our strategic goal and attain a position within the top 500 companies in the globe, as the bank of the choice, agent of change and the leader in our community and selected markets.We will do so by:Providing solutions that consistently meet or exceed the needs and aspirations of our Community and Customers.Upgrading the standards for service delivery and value creation in banking industryBeing influential in enhancing the standards of development of our industry.
7 Our Mission BANK PASARGAD Vision & Mission The Millennium BankOur MissionMaximizing the added value for our clients, shareholders, community, and our staff alike through:Providing the highest quality Islamic banking solutions.Arranging a variety of sophisticated commercial and merchant banking products and services for our clients.Offering private banking and asset management services for clients as well as conducting efficient trading, investment and treasury activities, through our in house specialized banking services, or through our more than 40 subsidiaries.Creating sustainable shareholders wealth by means of business growth and management efficiency.Providing a challenging and pleasant business environment for our dedicated colleagues.Observing prudential standards and standing accountable to our community and environment by sponsoring the professional and educational programs, sports activities, benevolent contributions and so far.
8 Shareholders' Structure Bank Pasargad's ShareholdersBANK PASARGADThe Millennium BankBank Pasargad is a private bank with the common shareholders who are of private sector and individual public. Major shareholders and their respective holdings by Nov 2010 were as follows:TypeNo. of ShareholdersNo. of Shares (Million)% OwnershipReal Persons44,3776,24627.04Legal Entities20516,85472.96Total44,58223,100100Shareholders' Structure
10 Capital Changes: BANK PASARGAD Capital Changes Billion IRR Facts and FiguresBANK PASARGADThe Millennium BankCapital Changes:Our Unique Success in the History of Iranian Economy:We increased our paid up capital from USD 770 million to USD 2.3 billion through an IPO on Nov 1st 2010.Capital ChangesBillion IRRTotal (Billion IRR)Initial Capital (2005)3,5001st Capital Increase (2007)1,7505,2502nd Capital Increase (2008)7,0003rd Capital Increase (Nov 2009)7007,7004th Capital Increase (Nov 2010)15,40023,100
11 Our World Ranking Among Top 1000 Banks in The Banker Awards & AchievementsBANK PASARGADThe Millennium Bank29th Among Top 100 Iranian Companies as per latest assessment made by Iran's Industrial Management Institute in fiscal year 2008.Our World Ranking Among Top 1000 Banks in The BankerWinner of the Banker’s Bank of the Year Award 2010 in IranRanked as 574th as per Banker’s issue of July 2009, based on March financial figures which was also used in last year’s ranking. While our ranking based on March 2009 figures, would be as the 488th bank.Ranked as 435th in July 2010No.1 Iranian Private Bank by Tier 1 CapitalHighest Profit Increase among Iranian Banks
12 Here is the Banker’s correction and apology In its September issue: Awards & AchievementsBANK PASARGADThe Millennium BankBank Pasargad’s financial figures were incorrectly Stated in the Banker’s July 2009 issue.Here is the Banker’s correction and apology In its September issue:
13 BANK PASARGAD Mr. Majid Ghassemi Mr. Ahmad Vadidar Executive Board of DirectorsBANK PASARGADThe Millennium BankMr. Majid GhassemiBoard MemberVice Chairman & Managing DirectorEx Governor of the Central Bank of Islamic Republic of IranTel: (+9821) ; Fax: (+9821) ;Mr. Ahmad VadidarBoard MemberBoard Member of Chief Executive Officers, in Charge of Bank’s Branches & Planning AffairsTel: (+9821) ; Fax: (+9821) ;
14 Mr. Mostafa Beheshtirouy Executive Board of DirectorsBANK PASARGADThe Millennium BankMr. Zabihollah KhazaeiBoard MemberBoard Member of Chief Executive Officers, in Charge of Financial & IT AffairsTel: (+9821) ; Fax: (+9821) ;Mr. Mostafa BeheshtirouyBoard MemberBoard Member of Chief Executive Officers, in Charge of International Banking AffairsTel: (+9821) ; Fax: (+9821) ;
15 Mr. Mohammad Reza Sedaghat Tafreshi Executive Board of DirectorsBANK PASARGADThe Millennium BankMr. Mohammad Reza Sedaghat TafreshiBoard MemberBoard Member of Chief Executive Officers, in Charge of Loan & Credit AffairsTel: (+9821) ; Fax: (+9821) ;Mr. Gholam Hossein VahidniaBoard Member of Chief Executive Officers, in Charge of Bank’s Logistic AffairsTel: (+9821) ; Fax: (+9821) ;
16 Map of Iran with Bank's Branches located on it Extensive Network of Bank Pasargad's Geographic CoverageBANK PASARGADThe Millennium BankMap of Iran with Bank's Branches located on it
17 Number of BranchesBANK PASARGADThe Millennium BankBank Pasargad has been quite successful in expanding its network of branches in such a short period of time since its inception.Bank Pasargad’s number of branches have increased from 150 in 2007 to 236 by Nov 2010ItemJan 2011No. of Branches2582150202233242
18 BANK PASARGAD Electronic Banking Services Virtual Banking Services The Millennium BankVirtual Banking ServicesOnline Banking ServicesSMS Banking ServicesTelephone Banking ServicesBanking ServicesMobile Banking ServicesCard Services Include: Student Card Cash Card Joint Card Gift Card Credit Cards Health Card Family Card Shopping Card (voucher card) Debit Cards
19 BANK PASARGAD Subsidiaries and Affiliates The Millennium BankBank Pasargad’s financial group consists of the bank and a series of subsidiaries, active in the major fields of:Some of the CompaniesBank's Share%Million IRRSaman Sakht Aryan Co.99.90599,400Pasargad Arzesh Afarinan Co.97.99979,952Bank Pasargad Leasing Co.67201,000Hashtom Urbanization and Construction Co.100,500Bank Pasargad Electronic Payment Co.36,850Bank Pasargad Brokerage Co.6030,000Bank Pasargad Financial and Investment Services Co.49Pasargad ICT Co. (FANAP)4,900Modaberan Sakht Aryan Co.45270,000Middle East Mabna Co.43.14196,361Pasargad Insurance Co.2083,700Middle East Mines & Mineral Industries Development Holding Co.19.90250,898Bank Pasargad Machinery & Equipment Leasing Co.1818,115Pasargad Mass Construction Development Co.52,500Pasargad Energy Development Co.42,000Pasargad Exchange Co.7035,000Iranian Etekayi Insurance Co.Total Investment2,841,225InsuranceStock BrokerageInvestmentMachinery leasingMining IndustryEnergyConstruction LeasingConstruction IndustryPars Aryan Investment PLC, as the group's parent company is responsible for control and management of the financial group. The following table shows the banks main subsidiaries and affiliates in order of their ownership as March 2010 fiscal year .
20 BANK PASARGAD Bank Pasargad's Human Capital The Millennium BankAs part of our strategic goals, we, at Bank Pasargad, pay special attention to employing highly qualified human capital. Table below demonstrates Bank's human capital separately for the Headquarter and the Branches according to their qualifications.Bank Pasargad's total number of human capital increased by 14% from 2009 to 2010, mostly having university graduates and post graduates. Bank's total number of employees counts to 2,630 by fiscal year end March 2010.Human CapitalPost GraduateGraduateAssociate DegreeWork ExperienceMF0-10 years51508611,11455210-20 Years320-30 Years41Over 30 Years2361061330135Subtotal81569711,12735837Total1372,098395%59414654919TotalMF9671,16695414501,3941,2162,6305347
21 Human Capital Training Courses In order to upgrade the colleagues with latest changes in the banking industry and to elevate their knowledge and skills, Bank Pasargad conducts numerous in house training courses on :This would of course lead to creativity and better management by our colleagues in providing services and handling various tasks.BANK PASARGADThe Millennium Bank Islamic Banking Credit Analysis & Credit Rating AML/KYC Foreign Exchange Operations Trade Finance UCP & ISBP Organizational Behavior
22 BANK PASARGAD Public & Educational Activities The Millennium BankGranting scholarship to first, second and third ranked applicants of the university entrance examinations each year.Establishment of Contemporary Visual Arts’ Museum on Oct 2009.Supporting national sport teams in international tournaments.Organizing athletic contests ,and sport events within the banking industry.Conduction of training sessions for customers to acquaint them with effective use of E-Banking services .ACCA training within the pasargad group
23 BANK PASARGAD ACCA Training within Pasargad Group Objectives: The Millennium BankObjectives:- To enhance level of experience among our colleagues- To create admissible job opportunities in Iran’s financial market- To offer training courses to other industries as a public training centre in Iran and theMiddle East.Activities:Signing cooperation plan with ACCA and getting its approval by the Board of Directorson 2nd April 2008.Setting up an executive committee of 7 top professional consultants to manage andimplement the ACCA educational project.Preparation of policies and procedures in accordance with ACCA standards.Choosing 14 qualified students out of 350 applicant colleagues.Initiation of F1 to F3 courses.
24 Overview of Financial Results BANK PASARGADThe Millennium BankOverview of Financial ResultsBANK PASARGADEx. rates: USD 1= IRR 9834 (20th March 2010); IRR 9717 (20th March 2009); IRR 8956 (19th March 2008);IRR 9243 (20th March 2007) ; IRR ( Sep 2010) ; IRR (Jan 2011)
25 Among Bank Pasargad's outstanding advantages are: Competitive AdvantagesBANK PASARGADThe Millennium BankAmong Bank Pasargad's outstanding advantages are:High quality products and superior servicesDedicated, talented and experienced human capitalGeographically diversified network of branches, which enables supporting customers’ needs nationwideIssuing various credit and debit cards for different purposesTraining sessions conducted to acquaint the bank's customers with effective use of electronic services
26 Total Assets (Million IRR ) Total Assets GrowthBANK PASARGADThe Millennium BankIn the relatively short span of time, since Bank Pasargad's commencement of activities, i.e. nearly 4 years ago, it has been experiencing steady growth every year.20th Jan 2011(fiscal year)Index(Million IRR)169,100,379122,632,92795,025,05656,965,02022,074,4874,675,594Total Assets382966.8158.1372.1Growth %Total Assets (Million IRR )
27 Total Liabilities (Million IRR) Total Liabilities GrowthTotal Assets' GrowthBANK PASARGADThe Millennium Bank20th Jan 2011(fiscal year)Index(Million IRR)140,092,766109,979,21584,895,13049,868,52917,736,5911,136,366Total Liabilities2729701811460Growth %Total Liabilities (Million IRR)
28 BANK PASARGAD Assets and Liabilities Structure The Millennium BankAssets Combination as of 20th March, 2010Liabilities Combination as of 20th March,2010
29 BANK PASARGAD Assets and Liabilities Structure The Millennium BankAssets Combination as of 20th Jan 2011Liabilities Combination as of 20th Jan 2011
30 BANK PASARGAD Total Owners’ Equity Growth The Millennium BankShareholders’ equity growth has been remarkable.In March 2006, only a few months since its establishment, Bank Pasargad posted its shareholders’ equity at over USD 380 millions.During the next fiscal year (the bank's first full year of activity) shareholders' equity grew by 22% to more than USD 469 millions.This trend continued throughout 2007 so that in its second full fiscal year of activity, ending in March 2008, the results rose by upwards of 63% to over USD 792 millions and in September 2009, by 49% increase reached USD 1,074 millions.Finally the decision was made by virtue of the agreed minutes at an Extraordinary General Meeting held in May 2009, to increase the banks paid up capital from 7,000 billion IRR to 36,036 billion IRR (approximately USD 3 billions)within the next three years.Bank Pasargad increased its paid up capital to 23,100 billion IRR by November 2010.
31 Total Owners’ Equity (Million IRR) Total Owners’ Equity GrowthBANK PASARGADThe Millennium BankTotal Owners’ Equity (Million IRR)
32 Credit Facilities Granted BANK PASARGADThe Millennium Bank20th Jan 2011(fiscal year)(fiscal year)(fiscal year)(fiscal year)Index(Million IRR)102,704,57676,044,77664,016,46339,767,51711,274,8781,125,087Credit Facilities Granted351961253902Growth %Credit Facilities Granted ( Million IRR)
33 BANK PASARGAD Key Performance Measures Performance 20th March 2007 The Millennium BankPerformance20th March 200719th March 200820th March 200920th March 201020th Jan 2011Operating Income ( Million IRR )2,140,0406,746,68012,963,79619,979,18120,825,093Profit before Tax ( Million IRR )857,3681,679,6702,446,1233,548,2555,706,252Total Equity ( Million IRR )4,337,8967,096,49110,129,92612,653,71229,007,612Operating Income (Million IRR)Profit before Tax (Million IRR)
34 BANK PASARGAD Key Performance Measures Performance 20th March 2007 The Millennium BankPerformance20th March 200719th March 200820th March 200920th March 201020th Jan 2011Earning Per Share (EPS)IRR 228IRR 310IRR 335IRR 437.9IRR 185(ROE) Return on Equity18.41 %22.91 %23.15 %26.65 %14.75 %(DPS) Dividend Per ShareIRR 175IRR 200IRR 220IRR 300-Return on Assets (ROA)3.62 %2.85 %2.47 %2.75 %2.53 %(Million IRR) Capital Adequacy Ratio28.29 %18.02 %15.87 %16.26 %20.90 %Dividend per Share (DPS)Earning per Share (EPS)
35 Capital Adequacy Ratio Key Performance MeasuresBANK PASARGADThe Millennium BankCapital Adequacy RatioReturn on Equity (ROE)
36 BANK PASARGAD Financial Ratios: The Millennium BankThe following table presents Bank Pasargad's main financial ratios:IndicesMarch 2009March 2010January 2011Capital Adequacy RatiosCapital Adequacy15.87%16.26%20.90%Equity to Assets10.66%10.31%17.15%Facilities Granted to Equity6.476.263.54Deposits To Equity88.34.57LiquidityDeposits to Assets85%86%78.5%Asset QualityFacilities Reserves to Total Facilities Granted Ratio2.32%3.99%4.43%Performance RatiosReturn on Assets3.08%3.09%2.53%Facilities CompositionFacilities Granted to Total Deposits81%75%77.38%Facilities Granted to Total Assets69%64%60.73%GrowthAssets Growth67%29%38%Deposits Growth31%25.73%Facilities Growth62%21%35%Total Income Growth93%54%-Net Profit Growth44%Efficiency Indices (Million IRR)Per Capita Income6,5478,085Deposits to Human Capital34,93240,13747,201Facilities Granted to Human Capital28,34530,11636,523
37 DepositsBANK PASARGADThe Millennium BankTotal deposits stood at 105,560,714 Million IRR as of 20th March, 2010 compared to 80,761,865 Million IRR of the previous year, showing an increase of 31 percent.Description20th March 200820th March 200920th March 201020th Jan 2011Total(Million IRR)48,897,96580,761,865105,560,714132,730,825Deposit Structure(Million IRR)Total Deposits Growth(Million IRR)20th Jan 201120th March 201020th March 200920th March 2008Type4,504,8334,928,4933,613,3474,349,395Call Deposits938,434921,720368,236167,845Saving Deposits121,922,53096,751,64973,664,31843,028,466Term Deposits5,365,0282,958,8523,115,9641,352,259Other Deposits
38 Foreign Exchange Major Operations Foreign Exchange OperationsBANK PASARGADThe Millennium BankForeign Exchange Major OperationsBank Pasargad was granted license for full foreign exchange operations by CBI on 12th December 2006.By fiscal year end 2009, 82 branches of Bank Pasargad's extensive network of branches participated in providing various foreign currency exchange services and all branches accepted applications for letters of guarantees and documentary credits.Considering its short term of activity in foreign exchange operations, Bank Pasargad has managed to establish correspondent relationships with 250 banks and financial institutions around the world, out of which, 140 are actively supporting the bank's global business.This ,in turn, has further facilitated providing superior services to customers as well as improving the accuracy and quality of operations.
39 Bank Pasargad's foreign exchange operations include: The Millennium Bank Bank Pasargad's foreign exchange operations include:Issuing documentary creditsDocumentary bills of exchange (Collections)Advise and negotiation of export documentary creditsIssuance of letter of guarantee in foreign currencyTrade Finance and project financingOpening and maintenance of individual and corporate accounts in hard currency.Handling inward and outward payment orders in foreign currencies.Collection of bills/cheques in foreign currency.
40 Foreign Exchange Operations BANK PASARGADThe Millennium Bank In 2011, Bank Pasargad experienced tremendous improvement in the following tasks: absorbing hard currency deposits, foreign exchange, hard currency transfers, import and export documentary credits, IRR local currency documentary credits, and hard currency guarantees, especially ones regarding commodity exports.Summary of the foreign exchange services rendered by Bank Pasargad is depicted in the following table:(USD 1000)DescriptionMarch 2007March 2008March 2009March 201020th Jan 2011Sight L/C62,094387,438628,933255,505753,408Deferred Payment L/C119,594240,738500,817684,0651,727,484Refinance L/C38,158311,854393,760272,665900,328Total Import L/C219,846940,0301,523,5101,212,2353,381,212Import Documentary Bills of Exchange-36,98597,69686,48666,932Export L/C28154,591115,88091,97722,711Internal L/C (IRR billion)5431,6952,8531,6822,631Guarantees Issued12,24726,25086,712242,000256,843Inward Payment Orders32,64877,542626,7371,195,609818,573Outward Payment Orders33937,094240,252831,7841,729,835
41 BANK PASARGAD Foreign Exchange Operations Total Import LCs (USD 1000) The Millennium BankTotal Import LCs (USD 1000)Total Export L/C (USD 1000)