Annual review meeting of First Habib Bank Modaraba held
Staff Report

ISLAMABAD—The Annual Review Meeting of the First Habib Bank Modaraba (FHBM) for the year ended June 30, 2005, was held at the Habib Bank Plaza in Karachi recently. Saeed Uddin Khan (CEO, FHBM) presented the performance highlights of the Modaraba to certificate holders.
In the backdrop of an intensely competitive business environment, FHBM was able to sustain healthy growth in its core business segment, i.e. leasing, through proactive marketing, customer focus and proper utilization of its business synergies. During the year under review new leases of Rs. 640 million were written and lease disbursements posted a record 53% growth over last year. Net Leased Assets crossed the Rs. 1 billion mark in 2005, increasing by 48% from Rs. 729 million last year to Rs. 1,078 million during the year under review. Improved business volumes led to significant increase in total assets of the Modaraba as compared to 2004, showing an increase of 48%.
Lease rentals have shown robust growth at 75% over 2004 while Net Lease Income increased by 38%. Profit from its core business increased by 6% over last year. However, net income in 2005 was lower because last year it included major contribution from the non-recurring items, i.e. capital gains and dividends. FHBM declared a profit distribution of 13% in 2005 as compared to 16% in 2004.
FHBM is a part of the Habib Bank Group and one of the major players in the Modaraba sector of Pakistan. The IRR on leases started improving at the tail end of FY 2005. The current trend of appropriate pricing strategies and sustained business growth will have a healthy impact on its performance. FHBM will strive to keep its focus on its core business, maintain the growth momentum and add value to all the stakeholders.