Faysal Bank

EXCELLENCE IN SERVICE IS THE KEY TO SUCCESS.

BANKING AND FINANCE 1

HAILEY COLLEGE OF BANKING & FINANCE University of The Punjab, Lahore


HAILEY COLLEGE OF BANKING & FINANCE

University of The Punjab, Lahore

SIDRA MUNIR MI09MBA002

SADIA AKBAR MI09MBA014

SHAMILA GHAFOOR MI09MBA045

TAYYABA RAFIQUE MI09MBA049


CONTENTS

Sr. No Description Page No.

1 Introduction 62 Establishment 73 Slogan 94 Vision 105 Mission 116 Objectives 127 Strategy 138 Group Information 149 Corporate Information 15

10 Milestones & Achievements 1711 Holding & Subsidiary Co. 2512 Deposit Products 2713 Consumer Finance Products 3714 Retail Services 4315 Corporate Banking Services 5116 Islamic Banking 5917 Faysal aik-Faisala 6718 Travelers Cheques 7119 Carees 7220 SWOT Analysis 7321 PEST Analysis 7722 Balance Sheet 8223 Profit & Loss Account 8324 Cash Flow Statement 8425 Statement of Changes in Equity 8526 Financial Highlights 8627 Recommendations 9428 Conclusion 95


Faysal Bank is one of the leading commercial banks in Pakistan with a well-entrenched name in the local market. The operations of FBL are driven with the objective to offer Sharia compliant banking services to its clients. FBL comprises an online network of129 branches. The DMI group headed by H.R.H. Prince Mohamed Al Faisal Al Saud is registered in the Bahamas with main offices in Geneva, Switzerland.


Faysal Bank was incorporated on October 03, 1994 in Pakistan as a public limited company quoted on Karachi and Lahore Stock Exchanges. Taking over the Pakistan operations of Faysal Islamic bank of Bahrain, operating in Pakistan since 1987, FBL commenced operations as a local commercial bank on January 1, 1995. Effective January 1, 2002 Al Faysal Investment Bank Limited (“AFIBL”) merged with Faysal Bank and as a result, the bank now stands co-owned by subsidiaries of the DMI Group including Shamil Bank of Bahrian E.C.

Mr.Frook Bengali is the president and chief executive officer of Faysal Bank and H.R.H.Prince Muhammad Al-Faysal Al Saud is the Chairman of Faysal Bank .The registered office of Faysal bank is in Karachi.

Faysal Bank (FBL), a leading commercial bank in Pakistan, is partnering with System Access Singapore, a global universal banking solutions provider, to implement the full suite of the latest version of Symbols across its branch network and head office. The Symbols Core Banking Solution will serve as the core transaction processing engine to support Deposits, Lending, Trade


Services, Payments, Treasury, and Investments business verticals of the bank. FBL’s principal activity is to provide commercial banking services through its branch network. The banking services include

corporate banking, consumer banking, retail banking, trade finance and investment banking services. The operations of the group are conducted through 46 branch offices located in all major cities of Pakistan. Faysal Bank will be ensuring the delivery of innovative products and services, through multiple delivery channels, through Symbols’ e Applications Framework. It aims to raise the level of its customer services and shorten its time to market new and innovative product offerings to its key customer segments. Said Ahmed Kamran, executive vice president and head of Information Technology at Faysal Bank, “Symbols will form the backbone of our strategic initiatives to markedly improve our services and product offerings. It will allow us to set ourselves apart from the average bank by successfully executing on our strategy.” With the deployment of the extended banking enterprise support of Symbols, Faysal Bank is well positioned to take on the challenges of universal banking. Symbols will also be providing a unique Cash Management portal for Faysal Bank’s corporate customers, enabling them to maximize their revenues through the -effective placements of their assets.


“EXCELLENCE IN SERVICE IS THE KEY TO

SUCCESS”

At Faysal Bank it is our philosophy to provide consumer-driven banking products and services that meet customer demands and exceed customer expectations. ‘Service’ is the only key to success.


Excellence in all that we do


Achieve leadership in providing financial services in chosen markets through innovation.


To offer the market banking products and services which are needed, convenient, marketable and Shariah compliant.

To grow as an institution with prudent growth and profitability in view.

To build relationships based on trust and mutual benefit with customers and shareholders.

To maintain a highly efficient and motivated in employee base.

To continue being a socially conscious organization.


Expanding our channels of distribution. Delivering banking products and

services with efficiency and effectiveness.

Introducing technological and procedural efficiencies into all aspects of our business.

Striking the right balance between risks and rewards.

Providing growth and development opportunities to employees of the bank.


The DMI group has been the leading contributor to the development of Islamic banking in the world, particularly with regard to promoting new modes of investment compatible with Islamic Shariah.

The group’s business comprises of three main sectors - Islamic Banking, Islamic Investment and Islamic Insurance.

The DMI group has an extensive network of financial institutions stretching over four continents, with well-integrated regional subsidiaries, enabling it to respond to local business needs and conditions. Based on this


geographical structure, the DMI group companies act as a financial bridge between the world’s leading financial centers and the Islamic countries.

Board of DirectorsH.R.H. Prince Mohamed Al Faisal Al Saud ChairmanFarook Bengali President & Chief Executive OfficerKhalid Abdulla Janahi DirectorZiad H. Rawashdeh DirectorDr. Said Sa’ad Al-Martan DirectorTariq Iqbal Khan DirectorSanaullah Qureshi DirectorShahid Ahmad Director

Executive CommitteeKhalid Abdulla Janahi ChairmanFarook Bengali MemberZiad H. Rawashdeh Member

Audit CommitteeTariq Iqbal Khan ChairmanZiad H. Rawashdeh MemberSanaullah Qureshi MemberCountry ManagementFarook Bengali President & CEOKhalid S. Tirmizey Deputy Chief Executive OfficerAjaz Rahim General Manager Head of Investment BankingBANKING AND FINANCE 15

Head Office ManagementFarook Bengali President & Chief Executive OfficerKhalid S. Tirmizey Deputy Chief Executive OfficerAjaz Rahim General Manager Head of Investment BankingAhmed Kamran Head of Information Technology & Administrative ServicTaimur Afzal General Manager Consumer FinanceMohammad Iqbal Head of FinanceIqbal Ahmed Zuberi Head of OperationsShahid Waqar Mahmood Country Risk ManagerSohail Nawaz Country Treasurer Head of Capital Markets & Financial InstitutionsArif Hasan Khan Deputy General Manager Consumer FinanceParvaiz Ahmad Head of Internal AuditMohammad Abadullah Head of Branch Operations & Process Re-EngineeringKhurshid Zafar Deputy General Manager – Investment BankingHasan Imam Head of ComplianceSeemin Shafi Head of Human Resources &

Corporate CommunicationsJaved Iqbal Head of SME Finance


CAPITAL AND OWNERSHOP

Companies of the Dar Al Maal Al Islami Trust (DMI) including Shamil Bank of Bahrain E.C own the majority share holding of Faysal Bank Limited. The remaining shareholders comprise of the general public, NIT and other Pakistani institutions. The Bank’s shares are quoted on the Karachi and Lahore Stock Exchanges.

FAYSAL GROWTH CERTIFICATES

The Bank launched Faysal Growth Certificates in June 2005. The Growth Certificate is a deposit product that credits profit to customer account on a six monthly basis at an increasing rate of profit every six months. This product offers a profitable investment to

retired persons requiring a steady income.


MEMBERSHIP OF VISA INTERNATIONAL

Faysal Bank became a principal member of Visa International. The Bank is in the process of linking its ATM and Debit card to Visa for use by its customers while out of Pakistan.

Participation in the International Livestock & Poultry Congress

Faysal Bank participated in the International Livestock & Poultry Congress held in Lahore in December 2005. SMEDA, PAKISTAN Veterinary Medical Association and Poultry & Livestock Organization, Pakistan organized the congress jointly. Mr. Ali Raza, Agri Business Head made a presentation highlighting Faysal Bank’s role in the development of livestock / poultry sectors.

AGREEMENT WITH NIT

Faysal Bank signed an agreement with National Investment Trust Ltd. (NIT) in September 2005, by virtue of which, the Bank is authorized to sell NIT units through its branch network.


CORPORATE AND INVESTMENT BANKING

Participation In The Conference On “GATS”

Faysal Bank participated in the conference on “General Agreement on Trade & Services (GATS)” in Lahore in November 2005. The conference was organized by the Planning & Development Department of the Government of Pakistan in


collaboration with United Nations Development Program, International Trade Centre and Export Promotion Bureau of

Pakistan.

Financial Transaction For Atlas Group’s

Faysal Bank advised and arranged the financial transaction for Atlas Group’s acquisition of Dawood Bank Limited. Elixer Securities Limited acted as the co-advisor

Launching Of e-banking product

Faysal Bank launched its e-banking product – Faysal Connect in 2005. This service is offered for the Bank’s corporate customers and allows them to access banking services via the internet by using state-of the-art secure technology. With the help of Faysal Connect, corporate customers can efficiently conduct their day-to-day business transactions including account balance queries, account details, account statements, fund transfers, salary payments, bills payment, issuance payment order and demand drafts and many more via an automated, secure, versatile and a straight through processing platform.

Awards and Rewards


The architectural design of Faysal Bank Building at Blue Area, Islamabad was chosen as a prizewinner by the Institute of Architects, Pakistan at the IAP Award Ceremony, held in October, 2005 at Karachi. The award was given to Mr. Nasir Iqbal, the architect for the Faysal Bank building in Islamabad.

Social and Community Obligations October 2005 brought an unforeseen calamity to Pakistan in the form of a massive earthquake in its northern regions. The entire country, especially the corporate sector rallied together to help in any and every way possible. Faysal Bank contributed Rs.10 million towards the President’s Relief Fund and Rs.2.5 million to its Waqf Fund for Earthquake relief.Utilization of the Waqf contribution was made directly bylthe bank’s own teams who volunteered their time and effort in the affected areas and through social uplift organization such as The Citizens Foundation. The employees of the Bank created their own fund and raised over Rs.1.5 million which is also being similarly used.


Faysal Bank hosted an Open Golf Tournament in Lahore in March 2005 which was very well attended by professional and amateur golfers alike.

Faysal Bank was one of the main sponsors of the Pak versus India Football Series played in June 2005. Prime Minister Shaukat Aziz was the Chief Guest.

.

It has also been recognized by ICAP/ICMAP for excellent quality of its 2008 annual report.

ESTABLISHMENT OF NEWBRANCHES

The bank in the year 2009 open new branches now total number of branches are 129 and online branches are 113(ATM)

CERTIFICATE OF EXCELLENCE

The bank this year has been awarded a CERTIFICATE OF EXCELLENCE by MANAGEMENT ASSOSIATION OF PAKISTAN for its good corporate governance and best business


Management committee (MANCOM) Comprises divisional heads and meets quarterly to review the performance of each division vis-à-vis targets set. The MANCOM also deliberates and decides on implications of new business initiatives for the bank.

Assets & Liability Committee (ALCO)

Comprises of senior management at Head office, and regional and area head of business units, and overall liquidity, asset and liability mismatch positions and discusses to rectify same.

Investment Committee(IC)


Comprises CEO, Head of Investments, Treasures and Head of Finance and reviews investment decisions and strategies. The IC meets as and when required.

Human Resource Committee (HRC) Comprises the CEO, the Deputy CEO, Heads of Investment

Banking, Finance and Human Resources and all business, units of the bank. The HRC meets frequently to discuss policy initiatives to ensure high levels of motivation of employees and to provide an environment conducive to high performance at Faysal bank.

Information Technology Steering Committee(ITSC) Meets at least once a month to review major technological initiatives being taken by bank with a view improving its service. This ITSC is divided into sub-committees to

undertake specific initiatives. Product & Service Committee(P&SC) Comprises the product Development Head along with Deputy CEO , Head of Operations and Head of Finance and the Head of concerned business unit and meets frequently to ensure that the Bank is in line with market opportunities and services.

Premium Committee Comprises the heads of general services, the concerned regional head and the deputy CEO who meets as and when required to discuss acquisition of new premises for the bank use and to decide on optimum utilization of existing properties.


Insurance Committee Comprises representatives Of general services, finance and operations and takes decisions on insurance requirements and finalizes insurance arrangements with insurers.

Thorough its subsidiaries, Dar Al Maal Al Islami(DMI) Trust, Bahamas is the ultimate holding company of the Bank.

Faysal Bank has two subsidiaries with following effective shareholding:Fayzan Manufacturing Modaraba(FMM):59.81%


Faysal Management Services (Pvt.) Limited (FMSL): 60.00%

PRODUCTS &

SERVICESBANKING AND FINANCE 26

Deposit Products

The Faysal Sahulat Account

The Faysal Saving Account

Rozana Munafa Plus Account


Faysal Premium Account

Faysal Basic Banking Account

Faysal Izafa Mahfooz Sarmaya FCY Saving Plus Faysal Marketline Faysal Moavin

Faysal Sahulat Current Account gives you a host of banking facilities that add convenience to your banking experience/transactions. It provides you the flexibility to access your account wherever you go.


Product Features & Benefits

Minimum balance of Rs. 5,000/- is required You can avail following additional benefits, if you maintain a monthly average balance of Rs. 500,000/- or more Free Cheque Book (upto 100 leaves per year) Free Locker (small, subject to availability) Annual fee waiver on Pocketmate Visa Debit Card. Free Pay Orders (upto 120 per year) You can easily access your account through chequebook and Pocketmate Visa Debit Card. Pocketmate can be used globally at more than a million ATMs and over 29 million points of sale terminals You also have free access to your account through online banking at all Faysal Bank branches nationwide

Faysal Savings Account addresses your basic banking needs. It allows individual depositors, like you to enjoy profits on your savings. Product Features & Benefits

Minimum balance of Rs. 10,000/- is required.


Profit is calculated on the monthly minimum balance. Profit is paid semi-annually. You can easily access your account through chequebook and Pocketmate Visa Debit Card. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals. You also have access to your account through online banking at all Faysal Bank branches nationwide. You can also avail our SMS Alert Facility to keep yourself updated on all activities in your account.

Rozana Munafa Plus is a unique savings account designed to pay profits on a monthly basis while giving you the benefit of the daily balance in your account. Product Features & Benefits

Minimum balance of Rs. 100,000/- is required Profit is calculated on your daily balance and paid to you on a monthly basis No limit on number of transactions that can be made each month


You can easily access your account through chequebook and Faysal Pocketmate. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals You also have access to your account through online banking at all Faysal Bank branches nationwide You can also avail our SMS Alert Facility to keep yourself updated on all activities in your account

Faysal Premium is a savings account specially designed for high value deposits with attractive profit rates. Product Features & Benefits

Minimum balance of Rs. 500,000/ is required. Profit is calculated on your daily balance and paid to you on a monthly basis No limit on number of transactions that can be made each month You can easily access your account through chequebook and Faysal Pocketmate. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals You also have access to your account through online banking at all Faysal Bank branches nationwide


Basic Banking Account is a Pak rupee current account with no minimum balance requirement. Product Features & Benefits

Account can be opened with an initial deposit of Rs. 1,000/ No minimum balance requirement. Maximum of two free deposits and withdrawals through counters/clearing are allowed in a month.

Unlimited transaction facility through ATMs. Free of charge statement of account for customers once a year. In case more statements are required than standard charges would be applicable.

Faysal Izafa is one of the most convenient ways of receiving profit on an annual or monthly basis. You can now enhance your lifestyle on your own terms. Product Features & Benefits

Minimum investment of Rs. 25,000/ is required .You have an option to avail profit payments on annual, semi-annual or monthly basis Your first chequebook will be provided free of cost if the invested amount is Rs. 300,000/- or more

Your current account is opened to disburse profit earned on your investment in Faysal Izafa. This current account is free from any account maintenance charges Your profit in your current account can be easily accessed through chequebook and Pocketmate Visa Debit Card. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals Financing facility up to 90% of invested amount is available. For example, on an investment of Rs. 100,000/- a loan of Rs. 90,000/-


can be availed .You can even withdraw your funds prior to maturity which will be subject to deduction of premature encashment penalty

To provide convenience and value to customers with foreign currency related needs, Faysal Bank's Mahfooz Sarmaya foreign currency account offers you many attractive features. Product Features & Benefits

Account can be opened in US Dollar, Pound Sterling or Euro Minimum balance of 1,000 units is required of the currency in which the account is opened. You can open Mahfooz Sarmaya Account in any of the following account types: Current Account Savings Account Term Deposit


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With Mahfooz Sarmaya Account, you become eligible for Pak Rupee financing facility of up to 75 percent of the deposit in your account at very competitive financing rate. With Mahfooz Sarmaya Account, you automatically qualify for special rates for car and home financing.

FCY Saving Plus is a foreign currency savings account which allows you to earn profit on a monthly basis. Product Features & Benefits

Account can be opened in US Dollar, Pound Sterling or Euro Minimum balance of 500 units is required of the currency in which the account is opened. Profit is calculated on your monthly average balance and paid to you on a monthly basis. Tiered profit structure providing an incentive to save more. On maintaining the monthly average balance equivalent to USD 50k or above, the following additional facilities are provided. Free online banking* Priority Banking* Borrowing in PKR up to 90% of FCY* Preferential rates on consumer finance*


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Faysal MarkeLink is our latest offering to help you control and manage your savings the way you always wanted to. Now with our innovative KIBOR-linked savings product, you can benefit from a daily changing market rate. Product Features & Benefits

Attractive profit rates for you that are linked with KIBOR (Karachi Interbank Offered Rate).Minimum balance of Rs. 500,000/- is required. Profit is calculated on your daily balance and paid to you on a monthly basis.

No limit on number of transactions that can be made each month. You can easily access your account through chequebook and Pocketmate Visa Debit Card. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals.


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You also have access to your account through online banking at all Faysal Bank branches nationwide.

Faysal Moavin Savings Account allows individual savers like you to enjoy regular profits on a monthly basis. Your deposited savings increase in value as monthly profits are added to your savings. Product Features & BenefitsMinimum balance of Rs. 20,000/- is required Attractive profit rates. You are provided with an incentive to save more through a tiered profit structure * Profit is calculated on your daily balance and paid to you on a monthly basis No limit on number of transactions that can be made each month You can easily access your account through chequebook and Pocketmate Visa Debit Card. Pocketmate can be used globally at more than a million ATMs and over 29 million point of sale terminals You also have access to your account through online banking at all Faysal Bank branches nationwide


You can also avail our SMS Alert Facility to keep yourself updated on all activities in your account

Consumer Finance Products

Faysal Car Finance Faysal Home Finance


Faysal Personal Finance

Faysal Khushaal Kisan Scheme

Plan your finances in a way that is straight forward, affordable and easy to attain. Now it’s easy to be in the driver’s seat!

Faysal Car Finance is available for

Locally manufactured vehicles Tenure upto 5 years Variable rate lease (12 month KIBOR + 5% annually)


Minimum customer equity 20% Comprehensive insurance cover at nominal rates available Eligibility Criteria

Applicant to be between 21 years to 60 years of age With 3 years of employment or of established business Qualifying income to debt ratio 60 : 40 (i.e. Max installment not higher that 40% of your disposable income which includes all credit commitments including Faysal Auto Finance facility)

Live a happy and carefree life, away from financial worries in a way that is straightforward, affordable and easy to attain. Faysal Home Finance is available for

Buying a new Home Building a new Home Remodeling or Renovation of existing Home


For Buying a Home Maximum financing amount available is 70% of the market value of property. Repayment period is between 3 years to 20 years .Spouse income clubbing facility. available in computing debt service ratio Repayment in monthly installments For Building a HomeMaximum financing amount available is 70% of value of land plus construction Repayment period is between 1 years to 20 years.Spouse income clubbing facility available in computing debt service ratio.Repayment in monthly installments. Disbursement of approved facility amount to be made in tranches corresponding with construction schedules For Renovating or Remodeling a Home Maximum financing amount available is 50% of the market value of property or Rs. 20 million, whichever is lower Repayment period is between 3 years to 20 years Spouse income clubbing facility available in computing debt service ratio Repayment in monthly installments Disbursement of approved facility amount to be made in tranches corresponding with construction schedules


Get rid of your financial anxieties. Live comfortably in a straightforward, affordable and easy to attain way. Faysal Personal Finance is available for

Upto an amount of Rs. 500,000/- Equal monthly installments Repayable over 3 months to 60 months

Offers specialized products for the agricultural sector. All Faysal Bank branches located in agricultural areas of Pakistan are equipped to help local farmers improve yield and methods of farming by offering timely and affordable financing for all purposes detailed in SBP’s list of eligible items for Agricultural Loans.

Faysal Khushaal Kisan Scheme offers Production Loans to meet


Cost of agri inputs (seed, fertilizer, pesticides etc.), cost of diesel, labor, storage, transportation and other working capital requirements of crop farming, orchards, nurseries, vegetable farming, floriculture etc. Development Loans to finance

Farm Power (tractors, combine harvesters, threshers, alternate energy installations including solar energy plant etc.) Farm Machinery and Equipment (ploughs, cultivators, laser levelers, processing machinery, tunnel structures etc.) Farm Transport (pickup, trailers, mini trucks etc.) Farm Irrigation (installation of tube-wells, turbines, power lines, transformers, sprinklers, drip irrigation systems, lining or alignment of water channels etc.) Land Improvement (land leveling, clearance of jungle and land reclamation of land etc.) Godowns, Silos and Cold Storage (cost of construction, machinery and working capital requirements) Seed Processing Units (working capital requirements) etc. Financing to meet needs of

Dairy Farms (cost of sheds, milking animals, feed, medicine and other working capital requirements) Livestock Farms and Feed Units (cost of animals sheds, animals feed, medicine and other working capital requirements) Poultry Farms and Feed Units (cost of poultry sheds, machinery, equipment, chicks, feed, medicine and other working capital requirements. Fish Farms (cost of fish ponds, tube-wells, fish seed, feed and other working capital requirements). General Terms & Conditions


Limit of Finance is determined on the basis of actual business needs and available collateral. Tenors of repayment are flexible depending upon nature of business generally between one to five years. Pricing is in the range of 6MK+3.5% to 5.5% p.a. and its recovery is linked with revenue cycle of the customers alongwith a nominal processing fee in the range of Rs. 500/- to Rs. 13,000/- depending on size of finance

Retail Services


Faysal Pocketmate Faysal Lockers Transfer of Funds Non-Stop Banking Internet Banking Sms-Alert Service

Combining the wide acceptability of a credit card and the thoughtful prudence of an ATM card, Faysal Bank Pocketmate is the most convenient way to carry cash. No more fear of overspending. No more searching for the nearest ATM. Faysal Pocketmate provides you with the freedom of world wide


acceptability at over 29 million point of sale (POS) terminals and more than a million VISA ATMs globallyService Features & Benefits

Worldwide Acceptance Travel the world and enjoy the freedom of using your Faysal Pocketmate. It gives you access to your account at over 29 million point of sale (POS) terminals and more than a million VISA ATMs globally, giving you the freedom of payment anywhere in the worldCountrywide Acceptance Your Faysal Pocketmate is accepted at over 50,000 merchant establishments in Pakistan i.e. restaurants, department stores, grocery stores, petrol pumps, etc. Besides, you can use it conveniently at more than 3,500 ATMs all over PakistanMaximum Security The Faysal Pocketmate contains can only be used electronically, which means lesser probability of fraudulent attempts on the cardEasy Traveling Your Faysal Pocketmate saves you from the hassle of carrying cash or writing cheques. It means you no longer have to stock up on traveler's cheques or cash while traveling

Balance InquiryWith Pocketmate, you have the flexibility to check your account balance whether you are in Pakistan or abroad

Fund TransferWith Funds Transfer facility you can instantly transfer funds between any two Faysal Bank accounts or from a Faysal Bank account to any 1-Link member bank account using your Faysal Pocketmate


Instantly send and receive funds from 1-Link members banks registered on this service No hassle of writing cheques or making pay orders. Enjoy a daily transfer limit of Rs. 250,000/-

Utility Bill PaymentManage easy payments of your Sui Gas bills through any Faysal Bank ATM with your Faysal Pocketmate

Eliminate the inconvenience of standing in long queues during traditional banking hours to pay your bill Immediate payment and confirmation through transaction receipt No additional charges Instantly check balance and status of your bill

Cash DepositNow with Pocketmate you can deposit cash into your Pak Rupee account at any time of the day. No requirement of filling out deposit slips or waiting in long queues for deposit. You can instantly deposit cash into your account through selected Faysal Bank ATMs

SMS AlertSMS Alert Service provides you the facility to instantly receive SMS alerts on all transactions made on your account through Faysal Pocketmate. With this service, you can keep yourself informed about the activities taking place in your account.

24-Hour Customer Service Your queries are welcomed at our 24/7 call center where our well-trained and qualified customer service team will assist you in answering your queries, registering and resolving your complaints,


reporting a lost or stolen card and activating your new Faysal Pocketmate

Overview of ExpensesEach single charge and each withdrawal of cash at ATM made using your Pocketmate shall be clearly itemized on your bank statement enabling you to easily check the status of your account

Three Supplementary Cards Pocketmate also gives you the facility of having up to 3 supplementary cards issued against one primary card. All supplementary cardholders will be able to conduct ATM or Debit transactions within the limits of the primary card account

Faysal Safe Deposit Lockers are carefully placed within the bank's professionally guarded premises with courteous Locker Custodians to facilitate your visit.

Branch premises including locker areas are equipped with appropriate security measures for both during and after banking


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hours. To secure you even further, the lockers are covered by insurance against loss With assurance of privacy you can lease a locker that best meets your needs, at very reasonable annual rentals A nominal (non-refundable) key deposit is applicable at locker issuance. Annual locker rental is as per applicable Schedule of Charges of the bank You may use Faysal Bank's locker facility six days a week (Monday to Saturday) during banking hours You have the option to operate the locker only yourself or add an additional operator to the usage of your locker. However, only one key per locker will be issued by the bank


You can deposit and withdraw cash from any branch of Faysal Bank, regardless of which branch your account is in. You need only to carry your chequebook! SWIFT Money TransferCustomers of Faysal Bank can now easily and speedily transfer funds in foreign currency through the SWIFT system installed at the Bank

Western Union ServiceCustomers who receive money transfers from overseas through the Western Union service can now withdraw their funds through any Faysal Bank branch


All branches of Faysal Bank remain open for business from 9 a.m. to 5 p.m. from Monday to Thursday. On Friday, the bank is open from 9 a.m. to 12.30 p.m. and then again from 3 p.m. to 5 p.m. On Saturday, the bank is open from 9 a.m. to 12.30 p.m. only.

The Faysal Bank Fast ATM & Debit card provides you round the clock service.

Be alert all hours


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With Faysal instant SMS Alerts you can get alerts on your mobile phone whenever you use your Pocketmate Visa Debit Card or your account locally and globally. Product Features and Benefits

Alerts on transaction made through Pocketmate Visa Debit Card locally and globally

Alerts on ATM transaction that you perform at any ATM using Pocketmate Visa Debit Card including

Cash deposits and withdrawals Funds transfers to and from your account(s) with Faysal

Bank Bill payments Alerts on all transaction you perform at the branch including Cash deposits and withdrawals Funds transfer to and from your Faysal Bank accounts Pay order and demand draft issuance /deposit Cheque clearing


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Corporate Banking Services

Corporate Financing SME Financing Trade Financing Treasury and Capital Market

Investment Banking Cash Management Financial Institution


Faysal Bank Limited is fully geared to meet the changing economic challenges present in Pakistan. We are ever striving to build meaningful relationships with our customers and become partners in their growth and progress by acting as financial advisors and consultants as well as financiers. Our Corporate Finance Group extends both short and long term financing facilities designed to fulfill the individual need of each corporate customer.

Small and Medium Enterprise (SME) unit of the Bank is geared towards catering to the banking requirements of small to medium businesses in a timely and therefore cost effective manner. All the branches of Faysal Bank are equipped to speedily attend incoming financing requests from SMEs. We help our customers grow from strength to strength by acting as their bankers and financial advisors.


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Faysal Bank has established a strong presence globally in Trade Financing through its network, affiliates and correspondents. The Bank has conveniently maintained relationships with major banks in the international financial market and continues to develop new ones wherever needed. Our Trade Finance services include a full range of import, export and guarantee products, thus offering tailor-made solution to fit the individual need of each customer.


Faysal Bank Treasury has carved out a niche for itself as a dominant participant in the Financial Markets. The focus of our Treasury Department is predominantly client centric where we use extensive experience and expertise in providing balance sheet solutions to our vast and diverse client base by offering a wide range of Fixed Income (Sovereign as well as Corporate) and Foreign Exchange products. Faysal Bank Treasury strives to broaden its product offering to better facilitate its clients and cater to their ever changing needs in order to reach our goal of becoming a solution provider of choice.


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Faysal Bank maintains one of the leading Investment Banking setup in the country. Our team of transactors and product specialists, during the last decade, has structured and successfully closed a number of innovative and large ticket transactions which is a testament of our continued commitment to our customers and contribution to the development of financial market. We cover almost the entire spectrum of value added investment banking products, ranging from capital raising and structured finance to advisory on sophisticated merger and acquisition transactions and privatizations. Our Investment Banking comprises of the following units:

Project and Structured Finance (PSF)PSF focuses on structuring and meeting the capital requirements of green field projects in various industrial sectors, often on limited or non recourse basisDebt Capital Markets (DCM)DCM primarily caters to large ticket medium/ long term financing requirements of corporate relationships, requiring risk distribution/ sharing with other financial institutions and/ or access to local and offshore capital markets. Debt instruments include term loans,


listed and privately placed Term Finance Certificates and Islamic financing products including Murabaha, Musharika and Sukuk Issues

Equity and AdvisoryOur EandA desk deals with Advisory on mergers and acquisitions, valuations, provides access to onshore equity capital markets through Ordinary and Preference share issues, IPO’s and listings and Private Equity placements

Agency and TrusteeFaysal Bank, as Agent and Trustee, acts as custodian of security, facility documentation as intermediary between our customer and the consortium of Financial Institutions, facilitating the objectives of each stakeholder in the transaction


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Faysal Bank‘s Cash Management has emerged as one of the leading cash management service providers in the country. We offer full range of services aimed at enhancing our clients’ liquidity position, reducing operational cost and improving financial control via accurate and timely reporting. Our success is primarily attributed to our customized solution offerings and technology-based product strategy.

We offer Payables and Receivables Management product suite to our clients; conventionally through our real time and online branch network and electronically through our Internet based products. Our products include Collections, Automated Cheque Payments, Electronic Banking, Salary and Employee Fund Management, Dividend Processing and Payments, and Customized Bulk Processing. Our solution offerings are fully customizable and become an important factor in the liquidity management structures of our clients, enhancing their working capital efficiency. We also offer complete visibility of flows by taking advantage of management information technologies to integrate transaction and financial information, and related operational activities.


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Faysal Bank's Financial Institutions (FI) Group is focused on providing a wide range of correspondent banking services to customers through our strong relationships with many global financial institutions, ensuring access to our customers to all the major global financial hubs. The above arrangements ensure most efficient settlement of import & export payments and foreign receipts/ payments of our customers. In addition to these global correspondent banking relationships, we also maintain onshore correspondent banking arrangements with large local banks to ensure coverage throughout the country.

Our trade finance services, in addition to provision of standard trade products including letters of credit, foreign & local currency trade bill discounting, guarantees, import & export loans and Export Refinance, offers advisory services on large ticket structured trade financing requirements of the customers. These include arrangement of cross border trade confirmations and trade related commercial & country risk syndications. Our onshore specialized trade services include supply chain solutions for our corporate customer base, including vendor/ supplier & distributor focused structured trade financing solutions.


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Barkat Islamic BankingFaysal Bank introduces Barkat Islamic Banking, with branches dedicated to purely shariah compliant banking transactions.

Barkat Islamic Banking staff is well experienced and committed to promoting the cause of shariah compliant Banking. Faysal Bank’s shariah advisor is a fully qualified mufti who oversees all business of these dedicated branches and ensures its compatibility and compliance with shariah principles. Faysal bank has 7 Islamic branches in Pakistan.Producya are followings;

Current Account

Saving Account Foreign Currency Account Basic Banking Investment Banking Investment Certificate Ijrah Murabaha


Barkat Islamic Current Account is a value added product which enables you to derive maximum benefits from your deposits.Current Accounts are opened on the basis of QARD (loan) and the principal amount remains guaranteed.


Account can be opened with Rs. 5000/- only Nationwide access to your account through any Faysal Bank

branch 24-hour access to your account through Faysal Bank’s ATM

network, and all other 1-Link ATMs country-wide Utility Bill payment through the Faysal Bank ATM network

anytime during the day or night Cash deposit through selected Faysal Bank ATMs SMS Alert facility Funds transfer through ATMs of Faysal Bank Complimentary cheque book on opening of account (once

only) Service Charges are as per Faysal Bank’s Schedule of

Charges


Barkat Islamic Saving accounts are opened on the basis of ‘Mudarabah’. Faysal Bank is the ‘Mudarib’ (manager of the funds) and you, the customer are the ‘Rabb-ul-Maal’ (owner of fund). Funds mobilized through Barkat Islamic Banking Saving deposits are deployed in Shariah compliant modes such as Ijarah, Murabaha and Musharakah etc. Rate of Profit on your deposit will be determined through a Shariah approved mechanism for calculation of weightages which will be announced at the end of each calendar month and shall be applicable to the following calendar month. Barkat Islamic Saving deposits will be entitled to share in the profit earned by the Islamic Banking Branches of Faysal Bank. Losses, if any, will be shared in the proportion of investment by each depositor. Product Features & Benefits Average deposit (on the basis of daily product) required Rs. 10,000/- Unlimited transaction facility.Profit calculated on monthly average balance and paid monthly .Tiered profit structure: the higher the balance of your deposit, the higher your profit Online access to your account through any branch of Faysal Bank 24-hour access to your account through Faysal Bank‘s ATM network, and all other 1-Link ATMs country-wide.Utility Bill payment through the Faysal Bank ATM network anytime during the day or night.Cash deposit through selected Faysal Bank ATMs Funds transfer facility through Faysal Bank ATMs.SMS Alert facility.Zakat and withholding tax to be deducted as per applicable rules.Service Charges are as per Faysal Bank’s Schedule of Charges.


The Barkat Islamic FCY account is a current account that gives you easy access to your deposit with the assurance that your funds will be utilized strictly in accordance with rules of Shariah Product Features & Benefits

Choice of currency - US$, GBP and Euro Minimum Balance required US $ 500 or equivalent Round the clock call centre facility Non-stop banking service available between 9 am to 5 pm on

weekdays (except between 1:30 pm to 3:00 pm on Fridays, due to the prayer break)

Barkat Islamic Basic Banking Account is a current account that enables small depositors the comfort of banking in a secure and customer friendly environment. Product Features & Benefits

Account can be opened with an initial deposit of Rs. 1000/- only

No minimum balance maintenance charges 2 free deposits and 2 free withdrawals per month through

cash / clearing. In case of additional transactions, charges as per Schedule of Charges are applicable

Free of charge Annual Statement of account. Standard charges apply if more than one statement is required


The Barkat Islamic Investment Certificates (BIIC) is a ‘Riba Free’ investment based on the principles of Mudaraba Mushtarika with the customers being the ‘Rabb-ul-Maal’ (owner of funds) and Faysal Bank as the ‘Mudarib’(manager of funds).

The BIIC holder shall be eligible for a share of profit which the Barkat Islamic Banking Branches of Faysal Bank will earn (after deduction of expenses) through investing funds in various modes of Islamic finance. Losses, if any, shall be shared strictly in proportion of Depositors’ and Faysal Bank’s capital contribution.

Monthly weights for profits distribution shall be calculated and displayed at the Barkat Islamic Banking branches as well as the Faysal Bank website (www.faysalbank.com).


Minimum investment amount Rs. 25,000/- Tenure 1 month, 3 months, 6 months and 1 year Profit payment at maturity Financing facility under any Shariah compliant mode up to

90% of deposit amount available to BIIC holder Options for automatic renewal of BIIC on maturity available Zakat and withholding tax to be deducted as per applicable

rules.


‘Ijarah’, is a term of Islamic FIQH which means 'to give something on rent'. Ijarah relates to the usufructs of assets and properties. Bank transfers the usufruct of a particular property to another person in exchange for a rent claimed from customer. In this case, the term 'Ijarah' is analogous to the English term 'leasing'. Here the Lessor is called 'Mu’jir', the Lessee is called 'Musta’jir' and the rent payable to the Lessor is called 'Ujrah'. In case of Ijarah, the corpus of the property remains in the ownership of the Lessor, but only its usufruct, i.e., the right to use the property, is transferred to the Lessee.The mode of Ijarah is used to meet medium or long term financing needs of the customer by giving the asset to the customer on a rental basis and at the end of the tenure, the asset may be sold to the customer upon agreed terms.

Faysal Bank's Barkat Ijarah Faysal Bank provides Barkat Ijarah facility for the following assets

Office Equipment Plant & Machinery Vehicles (Private & Commercial)

About Barkat Ijarah Transaction


The customer approaches the bank with a request for Ijarah and makes a promise to take on Ijarah the assets acquired by the Bank pursuant to such request.he bank purchases the asset required for Ijarah and receives title of ownership from the vendor.he bank makes payment to the vendor .he bank leases the asset to the customer after execution of Ijarah agreement.The customer makes periodic payments as per the contract.itle of ownership may be transferred to the customer through a sale agreement during the currency of or at the end of the Ijarah contract Who can benefit from Barkat Ijarah?

Individual / Proprietorship Partnerships / Corporates / Commercial Organizations


Murabaha’ is a term of Islamic FIQH and it refers to a particular kind of sale in which the seller discloses the cost of goods being sold and margin of profit. The payment of price in the case of Murabaha may be on the spot or it may be deferred, as agreed upon by the parties.Since Murabaha is a kind of sale, the basic rules of sale are applicable to all Murabaha transactions (without which this transaction is not valid). These rules are:

The subject of sale must exist at the time of sale The subject of sale must be in the ownership of the seller at

the time of sale The subject of sale must be in the physical or constructive

possession of the seller when he sells it to another person Who can benefit from Barkat Murabaha and for what purposes?

1. Barkat Murabaha can be used by individuals, sole-proprietorships, partnerships and bodies corporate

2. Purchase of inventories, raw materials, semi-finished / finished goods, stores & spares and all kinds of consumables can be made through Barkat Murabaha

3. Barkat Murabaha is an ideal mode for short term credit (up to 12 months) as it offers flexible credit terms to match the Customers’ cash-flows


Faysal aikFaislaOne decision that shall change your life and allow you to enrich

and bring happinessto the lives of your loved ones.

Faysal aikFaisla is Faysal Bank’s line of customized Bancassurance products developed to meet growing financial needs of our customers. We are all individuals and as individuals it is inherent to differ in our needs. However, the need to plan for a secure final future and the need to safeguard and enrich the lives of our loved ones is universal. Keeping this in view Faysal Bank has developed innovative products designed to address specific financial investment and protection needs of our customers. Our product menu includes the following offerings:

Family Assurance Plan Education Plan Saving Plan


Offer you Faysal aikFaisal- Family Assurance Plan.

Key Features

Substantial Protection at affordable premium Available in 2 option to suit your requirement Provide “Terrorism Cover" at the lowest rates, subject to

terms and conditions. Guaranteed refund of 30% of annual premium on Survival at

the end of every year Offers regular monthly include for the beneficiaries in the

unfortunate case of demise of the policyholder No medical Examination required(Pre-approved) Automatic Renewal Free Look Period of 15 days


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This plan has been developed for parents seeking to plan and save for their children’s higher education. With the fast growing cost of a good education, it is essential to start planning at an early stage hence parents with children less than 10 years of age are encouraged to avail this proposition. Some of the key features of this plan are: This plan allows you to save for your child on a regular long-term basis Your savings are invested in the ‘EFU Managed Growth Fund’ managed by investment experts who ensure that your savings are well managed The plan makes sure that your final objective of accumulating a target sum at completion of the policy is achieved, regardless of any unforeseen eventualities All your allocated investments secure upon maturity of the plan In addition to well managed investments, all customer’s avail life insurance and regular income benefits in the event of a mishap


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The saving plan is a multi-purpose saving utility that allows customers to plan and save proactively in the face of increasing inflationary pressures and growing expenses. Some of the salient features of the plan include: This plan allows you to save on a regular basis, with a lump sum payment upon maturity to secure your long term financial goals. Your savings are invested in the ‘EFU Managed Growth Fund’ managed by investment experts who ensure that your savings are well managed. All your savings are completely Capital Protected. This means your allocated investment amount is secure and you always get the higher of your total contributions or the value of your investments at the time. The plan provides attractive bonuses to further boost your savings.


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You may purchase American Express, US Dollar and Pound Sterling Travelers’ Cheques at selected branches of Faysal Bank


Human Resources Department:

Faysal Bank is a pro-active, people driven organization where the employees are our top most priority. The Bank not only provides challenging career opportunities but also excellent training in all areas of banking.

Current Opportunities at Faysal Bank

Please e-mail your resume to the following address. If your profile matches our criteria for any vacant position, we will get in touch with you


Strengths

Expansion and diversification of customer base. Most progressive and well networked bank in Pakistan. Heavy investment in Information Technology. Employee retention, customer satisfaction and high profit

generation. large network of Foreign Correspondents all over the

world. Good and friendly attitude of the workers. Provision of excellent trade facilities. Bank has strong backing by its principal

shareholders, ready to inject additional capital. Deposits growth 30%.rating AA & A1+

WeaknessesBANKING AND FINANCE 74

Lengthy processing time required for the approval of trade related facilities due to centralized processing system.

Segmentation of credit approval processing. Functional based Organization Structure lacks co-

ordination. More use of print, for advertisement, than the use of

other advanced types of media e.g. television etc.

Opportunities


Faysal Bank is discovering new ways of providing banking services to its customers.

Establishment of dynamic platform to launch a series of new products.

Establishment of strong relationship not only with borrowers but also with bank investors


Threats Economic Condition of Pakistan

Competitors

Declining trend in banking sector, which can affect it to large extent because of its big

Corporate customers which are few in number.

Arrival of Barclays and Bank of China in Pakistan, which can increase the competition in

banking sector. Decreasing trend in Earning per share and stock prices.

Moving of key employees, e.g. Corporate Relationship Managers, which means moving of

corporate clients to other banks


A broad view of market is important when management is interested in introducing better services for customers. Rapid technological change, global competition and the diversity of buyers preferences in many markets require the constant attention of the market vouchers to identify promises business opportunities, see the shifting requirements of the buyers, evaluate changes in competitors positioning and guide the choice of which buyers to target and classify them according to respective segments. Identification of external and macro factors that influence buyers and thus change the size and composition of market overtime involves initially building customer profiles. These influences include:

Political factorsEconomic factorsSocio factorsTechnological factors

Political Factors


The events in the last couple of years; ever since the sacking of Chief Justice Iftikhar Choudhary, Pakistan has faced crisis after crisis, including the lawyers’ movement, violence in Karachi, the Lal Masjid debacle, militancy in FATA and NWFP and its impact on other parts of the country, the return of Benazir Bhutto and her subsequent assassination, and current ongoing military operation in Swat– all the above events indubitably made a huge impact on the economy. Stability and law and order situation under the political regime is very important for the economy as a whole. The present state of the government in Pakistan is directly affecting the policies of banks. Continuous political changes have disrupted the policies and objectives as each regime brings with it its own agenda. Organizations need time to adjust to one regime and then work with it towards economic enhancement. Due the wrong policies of the government, the talibanization also develop in Pakistan and become the international issue in Pakistan and badly affected the Pakistan repute in the world and promote the uncertain conditions for the business in the Pakistan. Due to this the investors are not interested in the Pakistan.

Economic Factors

The economy of any country directly influences any financial organization. Economic indicators include Gross Domestic Product (GDP), inflation, balance of payment, debt of the government.


Pakistan’s economy has witnessed the most challenging period after posting six consecutive years of healthy economic growth. However, the strong fundamentals were compromised to prevailing global crises that’s shacked the confidence of global investors and FDI flowing in the country. The steep rise in oil prices to U$ 147 a barrel, soaring inflation hitting a 24% mark, huge fiscal deficits and balance of payments issues coupled with plummeting forex reserves added to the economy’s move to an unstable growth trajectory. Also the load shading is another factor that affects the Pakistan economy badly. This not the end of the story after this Pakistan’ economy face lot of problems like bomb attacks in Pakistan no electricity and the unstable government, due to this the investor are not invest in the Pakistan and the existing business men are loosing their business unit due to the loss. Due to this poor economy, businesses are reaping low profits and stock market is in great danger. Pakistan’s foreign debts are rising day by day so such a situation is a big challenge for banking institution to survive. The financial crisis in Pakistan has made the management of FAYSAL BANK tensed to work in such an environment.

Social Factors

A low saving culture has offset the huge population advantage this is enjoyed by Pakistan. Also culture is dedicated by the religion, and in Pakistan a significant segment of the population is reluctant to accept interest for their deposits due to the negative religious implications of such an act. About 70% of Pakistan’s population is based on rural areas and literacy rate of the country is very much


low, thus making it harder for banks to mobilize their deposits within these regions. However, in today world, the customers are becoming more intelligent and through media they keep themselves up to date. Thus, the lifestyle and expectations of the customers from the service provider is increasing day by day.

Technological Factors

Banks in the developed world have been turning to heavy IT investments, which differentiate their products, provide response times, enhance accessibility and improve customer satisfaction. Though investing in state-of-the-art host banking solution, ATM and POS (point of sale) networks, visa, MasterCard, and, smart cards, telebanking, internet banking and now mobile banking are common IT investment in the developed world, it is now that these products and services are gaining faster acceptance in Pakistan. In FAYSAL BANK technology has great effect on the working environment. FAYSAL BANK is always willing to introduce new computer systems for keeping its staff up to date. With the successful implementation of new centralized database system, the bank also achieved remarkable progress in business process re-engineering, turnaround time compliance by centralizing outward remittances, account opening and credit administration.


FINANCIAL

STATEMENTS


02


FBL should advertise its consumer products and it should organize events on periodical basis. Currently due to crisis in financial industry and rumors of downsizing in banking industry is creating fear in the minds of employees. (((PERSONAL COMM))) so this problem will automatically be solved. Moreover due to low banking activities, FBL needs rightsizing of its workforce.

Credit policy should be tightened in order to reduce NPLs. In this regard, loans to individual clients

should be extended only on the basis of cash base collateral like

Defense saving certificates, National Saving certificates, Term

Finance Certificates, etc. In case of SME clients, maximum

collateral, and security should be obtained, because of the

increased risk of default in Pakistan due to increased costs of

production.


In our opinion, Faysal Bank Limited is and will remain an aggressive and innovative financial institution which will continue to adhere to the tradition of understanding its customer’s needs by looking for new ways to serve them. The strong leadership of Board, management and the effort of the staff at Faysal bank Limited will enable to offer more superior products and services to customers which contributes towards economic and social development of Pakistan as well as developing the best future for itself.


Faysal Bank

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