ANNUAL REPORT - Faysal Bank · PDF filewith the primary responsibility of strategic management...
Transcript of ANNUAL REPORT - Faysal Bank · PDF filewith the primary responsibility of strategic management...
A N N U A L R E P O R T
B E G I N W H E R E I T B E G I N S
A N N U A L R E P O R T
B E G I N W H E R E I T B E G I N S
C O N TIntroduction 04
Chairmans Message 06
Corporate DNA 08
Corporate Information 14
Board Meeting Attendance 15
Management TeamProfiles 18
Senior Managementand Internal Committees 20
OrganizationalStructure 22
Corporate SocialResponsibility 26
Six Year FinancialSummary 28
Statement of ValueAdded 46
Notice of the 17thAnnual General Meeting 50
Auditors Review Reporton Compliance withCode of CorporateGovernance 53
Statement of Compliancewith Code of CorporateGovernance 54
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E N T SFaysal Bank Standalone Financials
Directors Report 59
Auditors Report tothe Members 73
Statement of FinancialPosition 74
Profit and Loss Account 75
Statement ofComprehensive Income 76
Cash Flow Statement 77
Statement of Changesin Equity 78
Notes to the FinancialStatements 79
Annexures 156
Shariah AdvisorsReport 2011 184
Other Information
Pattern of Shareholding 185
Branch Network 196
Glossary of Terms 208
Form of Proxy 213
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Begin where it beginsWe take great pride in putting together this report. It not only showcases our performance for thepast year but also presents our Brands promise for the years to come.
Inspired by the words of our nations best, Dr. Allama Muhammad Iqbal, we hereby extend our brandtheory of Bank on Ambition From how it begins to where it takes you.
The best a bank can do is empower people to do their best, live their lives to the fullest and make itpossible for them to achieve whatever they set out to do. Let us together then embark upon anambitious life, and begin where any successful journey starts the self.
INTRODUCTION
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Chairmans Message
Assalam o AlaikumThe end of 2011 marked the culmination of oneyear of Faysal Bank s acquisition of RBS Pakistan It was a year full of challenges not only becauseof the economic environment but also, and moreimportantly, because of the need to successfullytackle the issues of merger. It was a rewardingexperience to see our strategic intent beingfulfilled, placing us amongst the key players inPakistan s banking industry.
We continued to grow during the year with 27new conventional banking branches in 10 newcities and the addition of 32 Barkat Islamic bankingbranches. In addition, the bank ventured into newspecialised markets. As a result Faysal Bank hasset a unique example of turning losses into profitsin the very first year of acquisition of RBS Pakistan. Merged loss of the two banks of PKR 789 millionwas turned into profit of PKR 1.3 billion anoutstanding achievement! The Management
has demonstrated professionalism in achievingthese goals.
Security and stability are the two cornerstonesof any institution, and it is these two factors thatallow us to highlight the promise of tomorrow,combined with the hope of our revived approach.I have full confidence in the fact that we are wellon our way to achieving the excellence we seek.Our constant quest to surpass new heights, crossnew boundaries and overcome any obstacles weface is underlined by our support system. This isan exciting time for us as we are rapidly expandingin our quest to become a leader in the bankingsector, and I look forward to the opportunitiesthat lie ahead.
We will continue to strive for customer satisfactionand spare no efforts in delighting our customers,to become a Bank of choice.
Chaiman of the BoardSyed Naseem Ahmed
Faysal Bank has set aunique example ofturning losses into profitsin the very first year ofacquisition of RBSPakistan.
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CORPORATE DNA
Our VisionExcellence in all that we do.
Threshold ValuesValues at the heart of our brand.
Integrity:We are recognised by our reliability, credibility and character.We believe in ethical, honourable, time-proven principles of uprightness.We stand for and abide by honesty, truth and transparency.
Our Integrity: Our Identity.
Respect:We hold our customers, investors and regulators in high esteem.We uphold our customers rights to demand efficient service.We appreciate and respect our profession and, above all, our bank.
Our Respect: Our Duty.
Teamwork:We function as a team. Within functions, we cooperate.Between functions, we collaborate.Together, we aim for excellence and leadership in our chosen markets.
Our Team: Our Asset.
Professionalism:We are proficient and efficient in all that we do.We provide banking services knowledgeably and skillfully.We uphold regulatory obligations.
Our Professionalism: Our Competence
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PassionWe bring zeal and enthusiasm for banking to work.We are excited to provide customers with the best or the best-suited.We go the extra mile in legitimate, acceptable ways.
Our Passion: Our Worth.
ResponsivenessWe are receptive to the need for change and improvement.We are proactive and anticipate our customers needs and wants.We act quickly to modify, adjust or prepare for new realities.
Our Responsiveness: Our Distinguisher.
InnovationWe pioneer novel and more efficient ways to deliver solutions.We are dedicated to a culture of improvement and modernisation.We stand for originality, in thought, in action and in belief.
Our Innovation: Our Strength.
CompassionOur concern for our colleagues, our customers, our communities, and our country sets us apart.To each other, we are a family.For each other, we are a meaningful source of shared humanity.
Our Compassion: Our Gift.
Our MissionAchieve leadership in providing financial services in chosen markets through innovation.
Differentiator ValuesValues that set our brand apart.
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In a world full of compromise and mediocrity, it becomes easy to fall prey to a lifelessliving. The awakening, therefore, isnt always easy to achieve. Where it begins thoughis always when we move on from the mundane question of why on to the more pertinentwhy not.
T H E AW A K E N I N G
Naved A. KhanPresident & CEO
Mohamed A. R. HussainDirector
Hassan MohammedMahmood Hassan
Director
Lt. Gen.Muhammad Maqbool (Retd)
Director
BOARD OF DIRECTORS
Syed Naseem AhmadChairman
Graham Roderick WalkerDirector
Farooq RahmatullahDirector
Shahid AhmadDirector
Board of DirectorsSyed Naseem Ahmad ChairmanNaved A. Khan President & CEOGraham Roderick Walker DirectorMohamed A. R. Hussain DirectorFarooq Rahmatullah DirectorShahid Ahmad DirectorHassan Mohammed Mahmood Hassan DirectorLt.Gen. Muhammad Maqbool (Retd) Director
Audit Committee (AC)Graham Roderick Walker ChairmanHassan Mohammed Mahmood Hassan MemberLt.Gen. Muhammad Maqbool (Retd) Member
Board Risk Management Committee (BRMC)Mohamed A.R.Hussain ChairmanNaved A. Khan MemberSyed Naseem Ahmad MemberShahid Ahmad MemberFarooq Rahmatullah Member
Recruitment Nomination and Remuneration Committee (RNRC)Syed Naseem Ahmad ChairmanFarooq Rahmatullah MemberNaved A. Khan MemberShahid Ahmad MemberHassan Mohammed Mahmood Hassan Member
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CORPORATE INFORMATION
19/04/11 18 & 19/07/11 25/10/11ATTENDED BY / MEETING DATE 26/02/11 29/03/11
Syed Naseem Ahmad
Naved A. Khan
Farooq Rahmatullah
Graham R. Walker
Mohamed A. R. Hussain
Shahid Ahmad
Hassan Mohammed Mahmood Hassan
Lt. Gen. Muhammad Maqbool (Retd)
Leave of Absence
BOARD MEETING ATTENDANCE
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Zafar BaigHead Strategic Development
Salman Ahmed UsmaniHead Treasury
Yousaf HussainHead Special Asset Management
Syed Majid AliChief Financial Officer
Suhail KhanChief Risk Officer
MANAGEMENT TEAM
Naved A. KhanPresident & CEO
Nauman AnsariHead Corporate &Investment Banking
Aarij AliHead Retail Banking
Mehreen AminHead Human Resources
Nasir IslamHead Compliance
Naved A. KhanPresident & CEONaved A. Khan has over 23 years of workexperience, with 20 years of broad-based andvaried Corporate and Investment bankingexperience. Before joining Faysal Bank, Navedwas associated with ABN AMRO Pakistan as CEOwith the primary responsibility of strategicmanagement of the bank s local franchise and itskey businesses. He has also been associated insenior management positions with Bank ofAmerica, Pakistan.