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The caring bank

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BANK ALFALAH LIMITED

Bank Alfalah Limited was incorporated as a public limited company on June 21, 1992 under the Companies Ordinance 1984. Its banking operations commenced from November 1, 1997. The Bank is owned and operated by the Abu Dhabi Group and is the sixth largest bank in Pakistan.

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The Bank does business through a network of over 500 branches in more than 170 cities in Pakistan. The Bank has an international presence in Afghanistan, Bangladesh, Bahrain and a representative office in the UAE.

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The Bank provides financial solutions to consumers,corporations, institutions and governments through abroad spectrum of products and services, including

corporate and investment banking, consumer bankingand credit, securities brokerage, commercial, SME,

agri-finance, Islamic and asset financing.

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RE-BRANDING

The bank has entered re-branding as of February 2015 after 17 years of its birth. The official color has been changed from Deep Blue to Crimson Red and the logo has also been changed. The new logo has been named as well, Chevron. Meanwhile, the Vision & Mission statements have also been revised.

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OUR VISION

To inspire and empower people to dothings differently and shape their own

path in life and business.

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BOARD OF DIRECTORS H.H. Sheikh Hamdan Bin Mubarak Al Nahayan Chairman

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Mr. Abdulla Khalil Al Mutawa – Director

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Mr. Abdulla Nasser Hawalileel Al-Mansoori Director

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Mr. Khalid Mana Saeed Al Otaiba Director

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Mr. Ikram Ul-Majeed Sehgal – Director

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Mr. Nadeem Iqbal Sheikh – Director

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Mr. Atif Bajwa – Director & CEO

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TOP MANAGMENT•Mr. Faisal Farooq Khan Member•Mr. Khurram Hussain Member•Ms. Mehreen Ahmed Member•Mr. Saad ur Rahman Khan Member•Mr. Aly Mustansir Member•Mr. Suhail Yaqub Khan Member•Mr. Syed Ali Sultan Member

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CHIEF OPERATING OFFICER

Mr. Bahauddin Khan

COMPANY SECRETARY

Mr. Mian Ejaz Ahmad

CHIEF FINANCIAL OFFICER

Mr. Mirza Zafar Baig

AUDITORSKPMG Taseer Hadi & Co.

Chartered Accountants

REGISTERED / HEAD OFFICE

B. A. BuildingI. I. Chundrigar Road

Karachi, Pakistanwww.bankalfalah.com

SHARE REGISTRARF. D. Registrar Services (SMC-Pvt) Ltd1705, 17th Floor, Saima Trade Tower-

AI. I. Chundrigar Road

Karachi, Pakistan

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Credit Rating of Bank Alfalah PACRA, a premier rating agency of the country, has rated the

Bank ‘AA’ (double A) Entity Rating for the Long Term and A1+ (A one plus) for the Short Term. These ratings denote a very low expectation of credit risk, a strong capacity for timely payment of financial commitments in the long term and the highest capacity for timely repayment in the short term, respectively. The unsecured subordinated debt (Term Finance Certificates) of the Bank has been awarded a credit rating of AA- (double A minus).

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OPERATING RESULT

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• The Bank managed to increase its deposit base by 15.31% to PKR 605,963 million.

• Advances (net) have grown by 11.43% to PKR 290,597 million at December 31, 2014 as compared to PKR 260,780 million last year.

• Gross advances to deposits ratio was 50.31%.• Investments (net) level has significantly increased by 47.63% to PKR

324,319 million.• Alfalah’s Non mark-up income has increased by 9.15% to PKR 9,036

million, which includes contribution from fee based income of PKR 3,120 million.

• Bank has also registered healthy capital gains on sale of securities of PKR 1,058 million.

• Basic earnings per share were reported at PKR 4.09, which were worked out after taking into account the weighted average number of shares after IFC’s equity injection.

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Bank Alfalah has competitive advantage on other banks on the basis of different aspect which can be listed as

• Human Resource• Innovative programs like SME Tool kit• Free consultation facility to customer• Total quality management• Lavish branches

COMPETITIVE ADVANTAGE

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ALFALAH’s HERARCHY

COUNTRY CHEIFOPERATION

GROUP HEAD

REGIONAL MANGER

BRANCH MANAGER

OPERATIONS

MANAGER

TRADE FINANCEMANAGE

R

CREDITMANAGE

R

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BRANCH NETWORK OF ALFALAH

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BRANCHES The bank is currently operating through 673 branches(as on

March 31, 2015) including 497 Conventional, 165 Islamic Banking and 11 Overseas/International branches in Afghanistan, Bangladesh and Bahrain, with the registered office at B.A.Building, I.I.Chundrigar, Karachi.

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BRANCH WORKING MODEL OF ALFALAHConventional work model implemented in bank Alflah’s branches

nationwide.

BRANCHMANAGER

OPERATIONS

MANAGERTRADE

MANAGERCREDIT

MANAGER

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DEPARTMENTS On the basis of above hierarchy there are three departments working in

every branch. These can be listed and elaborated as:

• OPERATIONS• TRADE FINANCE• CREDIT

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OPERATIONS DEPARTMENT• Account opening department• Cash Department • Clearing Department• Remittances Department

TRADE FINANCE DEPARTMENTThis department enhance:• Import • Export• Trade finance department also work for trade within country

 

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CREDIT DEPARTMENTBasic responsibilities of credit department:• KYC • Industry profile of customer• Personal visit• If satisfied prepare basic documents for sanctioning loan• Make analysis of collateral through their legal department.

Loan is sanctioned 70 to 75% of collateral.• Make request to customer for opening account on his branch• Sanction loan and transfer it in his account 

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Products and Services of Alfalah

PERSONAL BANKING

Choose an account that suits your needs

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DEPOSIT ACCOUNTS• Alfalah Kamyab Karobar - Online Current Account• Alfalah Kifayat Monthly Savings Account• Alfalah Mahana Amdan Term Deposits• Alfalah Current Account• Alfalah Savings Account• Alfalah Royal Profit Account• Alfalah Basic Banking Account• Alfalah Basic Banking Account•  Alfalah Care Senior Citizen’s Savings Account• Foreign Currency Current Account• Foreign Currency Savings Account

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LOANS

• Alfalah Car Financing

• Alfalah Home Finance  • Alfalah Home Buyer• Alfalah Home Improver• Alfalah Home Start• Alfalah Home BTF• Alfalah Plot Purchase & Construct

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Credit CardsAlfalah Platinum VISA Credit CardAlfalah Titanium MasterCardAlfalah VISA Gold Classic Credit Cards

Home RemittanceCash over CounterCash over AccountPay Order/ Demand DraftMoney Gram

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BANCASSURANC

• Education Plans Alfalah Qalam Education Plan Roshni Education Plan

•  Marriage Plans  Alfalah Bandhan Marriage Plan Rida Marriage Plan

• Retirement Plans Alfalah Sakoon Retirement Plan Sahara – Retirement Plan

• Capital Assured Plans Alfalah Yaqeen Savings Plan

 

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BUSINESS BANKING ACHIVE YOUR

BUSINESS GOALS FASTER

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• Alfalah Karobar Finance• Alfalah Quick Finance• Lease Finance• Alfalah Milkiat Finance• Alfalah SME Toolkit• Agri Loans• Alfalah Paidawari Zarie Sahulat• Alfalah Musalsal Zarie Sahulat• Alfalah Tractor and Transport Zarie Sahulat• Alfalah Machinery & Equipment Zarie Sahulat• Alfalah Aabpaash Zarie Sahulat• Alfalah Islah-e-Araazi Zarie Sahulat• Alfalah Poultry Zarie Sahulat• Alfalah Dairy & Livestock Zarie Sahulat

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Corporate & Investment Banking

SOPHISTICATED AND INNOVATIVE

FINANCIAL SOLUTION

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• Working Capital Finance• Capital Market Operations• Investment Banking

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Branchless Banking

Branchless convenience at outlets nationwide

• Mobile paisa• G2P• Watan card program• Benazir income sport program

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Self service bankingKEEP TRACK OF

YOUR TRANSACTION 24/7

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• Alfalah VISA Debit/ATM Card• SMS Alert Service• E-statements

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CUSTOMER RELATION SHIP MANAGEMENT

• Understanding our customers’ needs, developing innovative financial solutions and building long-term relationships are the foundations of our commitment to our customers.

• With our strategic thrust heavily focused on customer, we strive to harness and deliver innovative, responsible and sustainable financial solutions for our customers.

• Our Consumer Finance Group continues to demonstrate our strategic intent to develop a process driven ‘built to last’ consumer business.

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• Bank Alfalah Car Finance continued demonstrating growth in 2014 and successfully maintained a leading market position in new customer acquisition.

• Home Finance continued its controlled growth and selective sales strategy, achieving year on year growth of 110 percent

• Focus on corporate sector employees and existing banking customers allowed the Bank to optimize its business model.

• Improved and structured Collection and Recovery activities also contributed to better results.

• Over the course of the year, our sales and relationship management channels have been strengthened through dedicated programes and the inculcation of a need based and customer oriented sales culture.

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EMPLOYEES BENEFIT PROGRAME• Our human resource is our strongest and most important asset. We have

invested in human capital by putting in place an experienced leadership team and continue to focus on attracting and developing the best talent.

• Over the years, the Bank has successfully attracted and developed key talent across the organization. Alfalah is working with 7785 employees.

• Our leadership team has extensive local and global experience in the financial services industry.

• I am confident that this will be a key ingredient in helping us build a strong and reputable organization.

• With the vision to become an employer of choice, many learning and development initiatives were undertaken during the year.

• Increasing its focus on providing learning opportunities to employees, a total of 691 learning programmes were offered by the Bank.

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• Increasing its focus on providing learning opportunities to employees, a total of 691 learning programmes were offered by the Bank.

• Increasing its focus on providing learning opportunities to employees, a total of 691 learning programmes were offered by the Bank.

• We have also developed a system that establishes objective, performance based measures, and aims to reward performance at all levels.

• As part of the Bank’s endeavor to develop and retain key talent, the Bank has granted share options to its key employees under the Employee Stock Options Scheme (ESOS) as approved by its shareholders and the Securities and Exchange Commission of Pakistan (SECP).

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CORPORATE SOCIAL RESPONSIBILITY At Bank Alfalah, we aim to conduct business with the multi-pronged

approach of creating value for our clients, shareholders and communities responsibly. Through an innovative business strategy, exceptional focus on customer service and experience, sustainable philanthropic investments and a diverse, engaged workforce, we reinforce our commitment to the communities where we live and operate.

RISING TALENT PROGRAM Through this program, we aim to provide meaningful opportunities to deserving

talent

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LAHORE LITERARY FESTIVAL As part of CSR, the Bank endorsed the Lahore Literary Festival, a platform which

brings together a diverse range of talents under one ambit and gave an opportunity for nascent writers and artists to express their imagination and air through poetry, art, short stories and photography.

PAKISTAN FASHION DESIGN COUNCIL We also collaborated with Pakistan Fashion Design Council and Fashion Pakistan

Council representing and promoting Pakistani designers and funded debut shows for young designers to showcase their designs at the Councils’ Fashion Weeks.

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NOWPDP We partnered with NOWPDP (Network of Organisations Working for People with

Disabilities, Pakistan) for its vocational training program The Artwork. This is an effort to empower people with disabilities through craftsmanship training in the Held of Textiles.

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PEST ANALYSIS

• POLITICAL Political factors in any countries affect the organizations and institutions greatly. If there is a stable

political environment, the organizations flourish successfully but if there is instability in political environment, then there is a bad effect on all institutions and organizations. If we look Bank Al-Falah with the aspect of political environment, there are some rules made by the government to follow. A regulatory approval is necessary from the State Bank of Pakistan in order to launch a bank. Furthermore there is a requirement of State Bank of Pakistan that the paid up capital of Bank Al- Falah should be Rs 10 billion by 2010, Rs 13 billion till 2011 and Rs 23 billion by 2013.

 

• ECONOMIC FACTORS As we know the economic conditions of the country at the current is not so good, and there was a huge

economic crisis recently which affected many banks. Bank Al-Falah should considers short term and long term issues concerning economy of the country. It is obvious that with the current situation, Bank Al- Falah like many other banks are being affected by the challenges like inflation, unemployment and economic crisis.

 

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• SOCIO- CULTURAL FACTORS Every country has its own social values and cultures. Bank Al-Falah is doing well by keeping

in mind the cultural values of Pakistan. As we can see from its advertisements that it reflects the true cultural and social values. And by doing this, Bank-Al Falah is attracting a great deal of customers. Because it is natural that when some organization takes care of customer’s social and cultural values, then the customers are naturally attracted towards that particular organization

 

• TECHNOLOGICAL FACTOR The technology plays a very important role in today’s successful organization. Bank Al-Falah

is doing well in introducing technologies as and when required by the Bank. Further it trains the employees to use those technologies.

We continue to invest in strengthening our technology front, so that we are equipped with a more robust, competitive and value-added interface that meets the needs of our customers. We intend to achieve faster turn-around-time, smoother online transactions and more efficient operations, all leading to a better transactional environment for customers and employees.

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SWOT Analysis

Strengths

• Bank Alfalah has moved rapidly in expanding branches network and Deposit base, along with making profitable advances and increasing the rang of products and services.

• Bank Alfalah developing and delivering the most innovative products, manage customer experience, deliver quality service that contribute brand strength, establishes a comparative advantage and enhances profitability

• In comparison to other banks Alfalah providing high excellence service like home, car, agri-financing

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• Modernize Banking system with highly integrated information system record kept properly, online banking and integrated circuits.

• Salaries are very reasonable, so the employs are not financially disturb and they devote their selves fully to their work

• Entertainment facilities are available for customers• Bank Alfalah is lending more money then any other bank in Pakistan by

providing least interest rates

• Bank Alfalh is offering two types of banking

1. Consumer banking

2. Islamic banking• Alfalahs credit cards are globally accepted in more then 150 countries

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WEAKNESS• Bank make less advertisement of its new products

• Employees are over loaded with the work because of less number of employees

• The bank’s Islamic Banking Department is very slow in introducing the new services and technologies as the internet facility

• The bank’s environment is supportive for the educated and rich persons but very irritating for the uneducated and poor people that’s why these people hesitates in dealing with the bank

• Still less branch network compared to other banks

• As a large firm it is not giving its staff a more benefits.

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Opportunities• Can extend its network to international framework• Can extend number of branches in Pakistan• Can grow its market fast• Can take benefits from governments new policies towards *IT• Because of huge capital can introduce new services and products• Can provide ATM’s it all the cities other than branches• Concentrate more on the growing sector of the market Islamic Banking• Improve the communication software even further with the latest software

packages

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Threats• Large number of competitors

• Huge competition because of large number of private banks

• Uncertainty in the country’s economic condition

• Growth of other competing Banks

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SWOT Analysis

SWOT analysis shows that Bank Alfalah’s strengths are more than its weakness and it has a chance of availing many opportunities.

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QUESTIONMARK

PERSONAL LOANSHOME

FINANCING

CASH COWBANCASSURANC

EPRODUCTS

DOGAGRI-

FINANCING

BCG MATRIX OF ALFALAH

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Looking Ahead

The year 2015 marks a year of new beginnings for Bank Alfalah. As a company, we have constantly transformed and grown to stay ahead of the evolving needs of our customers. We are committed to developing innovative, sustainable financial solutions for the people of Pakistan and making a significant contribution to the country’s economy. We begin the year 2015 with the same determination and passion to achieve new heights. I am confident that our businesses will continue to innovate and perform well, driven by new product innovations and exemplary customer service. Our focus on investing in human talent and providing an engaging work environment for all will continue in the future. This year, we have reinvigorated our brand and it is now time to leap forward. We will differentiate ourselves, really connect with our customers and create a world class.

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THANK YOU