PRO 27-07-2012_Layout 1 7/26/2012 11:27 PM Page 1
Friday, 27 July, 2012
NBP blazes the trail
Asian markets rise on upbeat earnings
NBP crosses `One Trillion Rupee’ benchmark with over 16,500 employees, 1,277 branches ISLAMABAD APP
T
he National Bank of Pakistan (NBP) has become the first ever bank of the country to cross the `One Trillion Rupee’ bench mark with more than 16500 employees and 1277 branch network across Pakistan and 23 overseas branches and representative offices in four countries. “The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank also handles treasury transactions for the Government of Pakistan (GOP) as an agent to the State Bank of Pakistan (SBP)”, Syed Ibne hassan Spokesman and Vice President of the Bank said in a statement issued here on Thursday. he said that National Bank of Pakistan was incorporated in Pakistan under the National Bank of Pakistan Ordinance, 1949 and is listed on all the stock exchanges in Pakistan. It’s registered and head office is situated in Karachi. NBP is the largest banking institution of the country is serving the nation from last sixty three years, he added. Today NBP, he said has become the first ever bank of the country to cross the `One Trillion Rupee’ bench mark with more than 16500 employees and 1277 branch network
Trade a la Kiev Pak-Ukraine sign agreement for establishment of joint commission for economic cooperation ISLAMABAD INP
Pakistan and Ukraine signed an agreement on establishment of Joint Commission on economic cooperation at a ceremony held at the Ukrainian Ministry of economic Development and Trade in Kyiv on Thursday. The agreement was signed by Ambassador Ahmad Nawaz Saleem Mela on behalf of Pakistan and Ukraine Deputy Minister of economic Development and Trade Mr Volodymyr Bandurov , said in a message received here today from Ukraine. The agreement will promote mutual cooperation in diverse sectors including trade, commerce, investment, science and technology, food & agriculture and livestock. The agreement also provides basis for exchange of information concerning economic matters and will provide framework conditions to facilitate the deepening of bilateral engagement with Ukraine.
LHC rules against hike in LPG prices LAHORE INP
The Lahore high Court (LhC) on Thursday ruled against an increase in prices of Liquefied Petroleum Gas (LPG) across the country twice during the month of Ramadan. The petition, filed by Judicial Activism Panel, claimed that even though LPG prices all over the world had decreased in the past few weeks, Pakistan LPG prices had risen twice during Ramadan. The petitioner asked the court to term this increase in prices as unconstitutional since these inflated prices would adversely affect the people of Pakistan, who are already suffering.
across Pakistan and 23 overseas branches and representative offices in four countries. The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank also handles treasury transactions for the Government of Pakistan (GOP) as an agent to the State Bank of Pakistan (SBP). Syed Ibne hassan said that the bank also provides services as trustee to National Investment Trust (NIT), Long-Term Credit Fund (LTCF) and endowment Fund for student loans scheme. he said that National Bank of Pakistan (NBP) is leading in agriculture financing among other banks and financial institutions in the country by lending Rs 33.013 billion among nearly 176,372 farmers between July 2011 to March 2012, against a target of Rs 32.400 billion by SBP for nine months. he further said that the State Bank of Pakistan (SBP) has fixed an indicative lending target of Rs 280 billion for the financial year 201112, out of this NBP’s Share is highest after ZTBL. As per SBP report, NBP’s total outstanding during one year has exceeded by Rs 9.763 billion, rising from Rs27.670 billion in March 2011 to Rs 37.433 billion in March 2012. The NBP outstanding is higher by Rs 9.763 billion as compared with the total exceeded amount of outstanding by all five other banks including ZTBL which stood at
Rs 2.283 billion in March 2012. Out of our total 1,277 domestic branches, 875 are involved in catering the needs of farmers. The National Bank of Pakistan is at the top of ‘five’ commercial banks of Pakistan, as it offers complete range of commercial banking services along with agriculture services to farmers under one umbrella. The Spokesman of the Bank said that NBP has disbursed Rs 42.4 billion in agriculture credit financing among nearly 252,000 farmers during July 2010-June 2011, against a target of Rs 41 billion. The percentage of non-performing loans of NBP was about 5 percent as on December 31, 2011, compared to 15 percent average NPL’s of commercial banks in agricultural. The other distinguishing feature of NBP is the competitive mark up rate, which is lower than the rate being charged by other commercial banks, he remarked. The NBP, he said took pride in being a key partner in government’s program of achieving food security and poverty alleviation. Syed Ibne hassan added that the National Bank in 2011 posted pre-tax profit of Rs 26,011 million which was higher by Rs.1, 596 million or 7 percent as compared to last year. The increase was due to higher core revenues, non interest /mark up income and lower provision charge.
Raja’s 4-pronged trade coup Envoys of Japan, Italy, South Korea and Sri Lanka meet PM, discuss bilateral relations and avenues for further cooperation in trade and investment
HONG KONG AFP
Asian markets rose Thursday following upbeat earnings results in the region and the United States, while eurozone fears eased slightly on hopes over the funding of future bailouts. The first gain for the Dow in four sessions also provided some support but the euro gave up some of the rare recent gains it had made in New York currency trade. Tokyo was 0.28 percent higher by the break, Sydney gained 0.34 percent and Seoul climbed 0.18 percent but hong Kong fell 0.20 percent and Shanghai eased 0.10 percent. Regional investors followed the lead from the Dow and most european markets after Spanish borrowing costs fell slightly after hitting record highs on the back of fears Madrid will ask for a bailout. The yield on Madrid’s 10-year bonds eased to a still-high 7.376 percent after soaring to as much as 7.621 percent at one point. Dealers were given some comfort after Austrian central bank chief ewald Nowotny, a member of the european Central Bank governing council, said the future european Union financial rescue fund might be granted a banking licence. That would allow the fund to exchange bonds for eCB cash, bolstering its capacity without governments having to contribute additional funds.
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ISLAMABAD: Ambassadors of Japan, Italy, South Korea and high Commissioner of Sri Lanka separately called on Prime Minister Raja Peervez Ashraf here on Thursday and discussed bilateral relations and avenues for further cooperation in trade and investment. Japanese Ambassador Mr. hiroshi Oe said that diplomatic relations between the two countries during last 60 years had been on an upward trajectory for the mutual benefit of our two peoples. The Prime Minister underscored the importance of realizing the full potential of trade and investment between the two countries. Our two countries have great scope to enhance cooperation in the fields of defence and security and economic cooperation, adding Japan is an important player for peace, progress and stability in the region, the Prime Minister said. Italian Ambassador Mr. Adriano Chiodi Cianfarani during meeting with the Prime Minister said that it was his mandate to further strengthen the existing bilateral relations. The Italian expertise in the renewable energy could make yet another success story of cooperation between the two countries, the Prime Minister said. he said that Thar Coal is an attractive destination for the Italian investors. South Korean Ambassador Mr. Choongjco Choi conveyed congratulations on behalf of the government, the embassy and on his own behalf to the Prime Minister on assuming the office of Chief executive of Pakistan. INP
Spain seeks French support as eurozone crisis deepens PARIS AFP
europe’s economic crisis has deepened, with a slump in German confidence, worsening British recession and a debtwracked Spain seeking French support in the face of soaring borrowing costs. While fears grew Wednesday that Spain, the fourth largest eurozone economy, is going to need a fresh bailout, storm clouds were also gathering over europe’s top economy. Data showed that business confidence in Germany dropped again in July as companies grow increasingly wary of fallout from the eurozone debt turmoil. The Ifo economic institute’s closely watched business climate index dropped to 103.3 points in July from 105.2 points in June, a slightly steeper decline than analysts expected. It was the third month in a row the index fell. Later Wednesday, ratings agency Moody’s handed Berlin more bad news, downgrading the outlook for 17 German banks after a similar move against the government’s credit rating earlier this week.
Another low-five Refinery output down by five percent in FY12
KARACHI STAFF REPORT
Volatility in the international oil prices made FY12 once again a topsy-turvy year for the refinery sector of Pakistan. The declining trend in refinery production continued for the 4th consecutive year with a slash of 5 percent in FY12 to 7.3 million tonnes. “We believe, reduction in domestic gross refinery margins, particularly towards the later part of the year, stands out as the major reason behind constrain capacity utilization accompanied by liquidity problems of certain refineries,” said Topline analyst Nauman Khan. Resultantly, he said, the country’s reliance on impacted petroleum production rose to 61 percent, up 100bps from last year. Overall uncertainty is surrounding the future direction of gross refinery margins and high regulatory risk faced by the sector. The refinery production during FY12 declined by 5 percent to 7.3 million tonnes as against 7.7 million tonnes last year while capacity utilization declined to 65 percent as against 68 percent in FY11.
“however, there was a divergent trend amongst the individual refineries, with ATRL and PRL showing rise, while the other three major refineries (PARCO, NRL and BYCO) all showing decline in the production,” Khan said. During the year, he said, ATRL and PRL capacity utilization improved approximately 91 percent and 77 percent as against 88 percent and 71 percent in FY11, respectively. On the other hand, Byco capacity utilization declined to 14 percent as against 33 percent last year, with refinery remaining in-operational in large part of the year. PARCO and NRL, capacity utilization declined to 63 percent and 76 percent versus 80 percent and 68 percent last year, respectively. We believe, former was with adverse operating environment on account of circular debt while the latter restricted its throughput due to lower margins. The trends in the throughput subsequently impacted on individual company’s market share. PARCO maintained its top-slot but lost its market share by approximately 1pps to 38 percent. ATRL surpassed NRL to attain the 2nd as it improved its market share from 19 percent to 21 percent, while NRL maintained its market share around 20 percent. But the major gainer of the year was PRL, whose market share rose to 19 percent as against 17 percent last year. On the other hand, major loser was BYCO which lost its market share from 5.6 percent last year to 1 percent this year.