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? The bank is the safe script as per the fundamentals and technicals as the branch network is
sprawling all over the country with innovations in different fields.
? The bank is trading at the discount of 10% to 11% to it’s fair value which is in the band of
Rs. 118 – Rs. 120.
? 70% of the total income accounts for the mark up/interest income.
? Deposits have grown with 12% aggregating to Rs. 443.185 billion in 9 months period ended
September 30, 2004.
? Advances have been increased from 160.990 billion (YE 31.12.03) to Rs. 187.431 billion
(3QE 30.09.04).
? The bank con tains NIT units in it’s portfolio which are secured by the government of Pakistan
that if the banks continues to hold them upto 2006, the government will facilitate the
redemption of these units at Rs. 13.70 per unit to mitigate the risk of adverse fluctuation.
? More than 90% of the investments of the bank is secured in terms of government securities.
? The expected earnings for the year ended December 31, 2004 may be Rs. 12.5 – 13.5 with bonus
issue of 10 – 15% alongwith the cash dividend of 20 - 25%.
We recommend a BUY for the stock on account of the attractive fundamentals and our valuations.
This report is produced by SC Securities (Pvt.) Ltd. and is only for the use of their clients. This document should be read in the investors’ own
interest and it sh ould not be consider as an offer for sale. The information contained is from sources believed reliable, we do no represent that
it is accurate or complete and should not be relied upon as such.