In In T The he Nam Name o e of Go f God Introduction - - PowerPoint PPT Presentation
In In T The he Nam Name o e of Go f God Introduction Financial Stateme ments Stateme ment o of I Income me International Standards Foreign Branches & Subsidiaries Organisation & H Huma man R Resources El Electronic
Introduction Financial Stateme ments Stateme ment o
Income me International Standards Foreign Branches & Subsidiaries Organisation & H Huma man R Resources El Electronic Banking Samples of BSI’s Awards Future Programm mmes Conclusion
National Economy National Economy Iranian Banking Sector Iranian Banking Sector BSI History BSI History BSI Outlook BSI Outlook BSI Mission BSI Mission BSI Objectives BSI Objectives BSI SWOT BSI SWOT
Location : In the middle of the Middle East Capital : Tehran Area : 1,648,195 Km2 Population : 71.5 Million Official Language : Persian Government : Islamic Republic Currency : Iranian Rial (IRR) Oil Production : 4,300,000 bpd Credit Ratings : (by Fitch) B+
Definition 2005 2006 2007 2008e Population, mn 69.09 70.10 71.02 72.20 Nominal GDP, US$ bn 188.04 222.10 285.90 344.80 Real GDP growth % change year-on-year 4.7 5.8 7.8 4.5 GDP per capita, US$ 2,724 3,171 4,028 4,791 GDP per capita PPP, US$ 9,180 9,890 10,810 11,350
Definition
2005 2006 2007 2008e Export, US$ bn
64.40 76.10 97.40 98.60
Import, US$ bn
43.10 50.00 56.60 65.10
Trade Balance, US$ bn
21.30 26.10 40.80 33.50
64.4 76.1 97.4 98.6 43.1 50 56.6 65.1 20 40 60 80 100 2005 2006 2007 2008e Export, US$ bn Import, US$ bn
US$ bn
Definition 2005 2006 2007 2008e 2009f Exchange Rate IRR/US$, ave
8,964.00 9,171.00 9,223.00 9,539.00 10,383.00
Exchange Rate IRR/EUR, ave 11,345.00 11,468.00 12,892.00 13,653.00 13,816.00
6,000.00 7,000.00 8,000.00 9,000.00 10,000.00 11,000.00 12,000.00 13,000.00 14,000.00
2005 2006 2007 2008e 2009f
Exchange Rate IRR/US$, ave Exchange Rate IRR/EUR, ave
: 17 (State-Owned: 6, Private: 9, Specialized: 2)
: 17,000 ATM Network : 12,959 Total Bank Assets : US$ 446,425 Million Total Bank Deposits : US$ 240,203 Million Total Loans : US$ 179,733 Million Total Bank Employees : 186,425
As at March 2008
Bank Saderat Iran (BSI) was established with IRRs 20 20 Million in 1952 1952 under registration no. 3833 3833 in Tehran. After nationalisation in 1980 1980 all branches and subsidiaries of the bank across the country were categorised as Bank Saderat Ostans (provinces) and received the required authorisation to practice banking operations accordingly. BSI remains the only shareholder of the whole network. Headquarters of BSI is located in Iran’s capital city, Tehran. BSI’s financial statements include Bank Saderat Iran, Bank Saderat Ostans (provinces) and other subsidiaries.
Turning into a leading international bank through app pplying g innovative technology gy, crossing g the borders of time and place, offering a variety of services to its customers and creating added value for the stakeholde ders.
1.
lopi ping g the scope e of operatio tions at natio tional nal and intern ernational tional levels ls. 2.
ring innovativ tive e bankin ing g produ ducts cts to our clients nts. 3.
largin ing our market positi ition
le observi ving ng custom
er-oriente
d prin incip ciples s of sinceri erity ty, , trus ustw tworthines thiness s and respon
sivene eness ss. 4.
ting g added value for the shareholder holders s and other r stakehol
, whil ilst st obser ervin ving g interna rnatio tional l bankin ing g standar ards ds.
1.
facilities and modern financial instruments. 2.
3.
communications skills. 4.
5.
innovative products.
1.
57 years of reliable experience in banking industry. 2.
establishment of the bank. 3.
4.
5.
6.
7.
8.
80% of the outlets of the bank. 9.
1.
2.
and decision making. 3.
4.
5.
1.
subsidiaries and branches abroad and an international view of the banking industry. 2.
30 licences for Bank Saderat Ostans (provinces). 3.
4.
higher return and lower profits paid to deposit holder. 5.
1. 1. Facing the global economic crisis like all other banks in the world. 2. 2. High competition in the market among all Iranian banks. 3. 3. Limits practiced by the Central Bank on profit rates and the considerable gap between market expected profit rates and related bank profit rates. 4. 4. International sanctions. 5. 5. The less competitive suppliers’ market and fragile basis for technology (communications etc).
Sept t 2008 2008 March h 2008 2008 March h 2007 2007 Assets 5,716 2,177 2,880 Cash 74,918 75,392 58,126 Due from Central Bank, financial institutions, etc 227,073 219,329 182,782 Facilities and related claims 17,053 24,374 21,112 Participation bonds and other investments 20,458 22,301 21,077 Fixed assets 35,107 42,480 33,933 Other assets and goodwill 380,325* 386,053 319,910 Total assets
Billion IRR *The reason behind the drop off in the amount of assets against the end of 2008 fiscal year is due to the sale of about 51% of Ghadir Investment Company’s shares.
203,894 243,703 244,126 319,910 386,053 380,325
150,000 200,000 250,000 300,000 350,000 400,000
March 2007 March 2008 Sept 2008 Granted facilities and participation bonds Assets Billion IRR
0.0% 20.0% 40.0% 60.0% 80.0% March 2007 March 2008 Sept 2008 63.7% 63.1% 64.2%
March 2009 March 2008 March 2007 March 2006
Definition
Total facilities granted
19,704
Doubtful debts
17,831
Provisions raised
3,314
16,911 18,763 33,371 19,704 9,413 12,444 15,639 17,831
20,000 30,000 40,000
March 2006 March 2007 March 2008 March 2009
Doubtful Debts Provisions Raised
Bill llion
0% 20% 40% 60% 80% 100%
March 2007 March 2008 Unaudited March 2009
78% 80% 81% 22% 20% 19%
BSI Commercial Banks
Sept 2008 March 2008 March 2007 Liabili bilitie ties s
50,000 41,015 49,068 Due to Central Bank and credit institutions 100,614 116,644 88,339 Demand and saving deposits 156,114 148,769 109,983 Term and other deposits 44,099 47,432 40,516 Reserves and other liabilities 1,864 2,091 1,706 Reserve work termination benefit 352,691* 355,951 289,612 Total liabilities
*Decrease in liabilities in comparison with 20 March 2008 is due to the sale of 51% of Ghadir Investment Company Shares, and according to new rules of the Central Bank of Iran, Banks are not allowed to sell Travellers cheques.
Unconsolidated year ended March 2009 March 2008 Definition
45,585 45,122
Current Gharzal Hassaneh deposits
26,255 22,436
Saving Gharzal Hassaneh deposits
76,914 58,677
Short term investment deposits
59,260 48,758
Long term investment deposits
208,014 174,993
Total of four main deposits
63,757 90,420
Other resources (deposits)
271,771 265,413
Total of resources (deposits)
Billion IRR
110,558 144,693 174,993 195,222 100,000 120,000 140,000 160,000 180,000 200,000 March 2006 March 2007 March 2008 Sept 2008
Billion IRR
17% 10% 28% 22% 23%
Unaudited March 2009
17% 9% 22% 18% 34%
March 2008
Current Gharzal Hassaneh deposit Saving Gharzal Hassaneh deposit Short term investment deposit Long term investment deposit Other resources
Unaudited March 2009 Re-presented March 2008 Definition 40,868 37,782 Income 37,079 36,227 Expenses 3,789 1,555 Profit before Tax (322) Tax 3,646 1,233 Net Profit
Bank k Saderat Iran Group p
Billion IRR
32,000 34,000 36,000 38,000 40,000 42,000 Re-presented March 2008 Unaudited March 2009 37,782 40,868 36,227 37,079
Income Expenses
Billion IRR
1,000 1,500 2,000 2,500 3,000 3,500 4,000 Re-presented March 2008 Unaudited March 2009 Forecast for the year to March 2010
1,233 3,646 3,427
Billion IRR
March 2009 March 2008 March 2007
Definition 3,646 1,233 2,489 Net profit of group 1,520 1,302 1,147 Net profit of branches abroad
Billion IRR
Billion IRR
1,000 2,000 3,000 4,000 5,000
March 2006 March 2007 March 2008 March 2009
899 1,147 1,302 1,520
3,806 1,342
2,126
Net profit of domestic operation Net profit of branches abroad
9,700 9,893 10,807
9,000 9,200 9,400 9,600 9,800 10,000 10,200 10,400 10,600 10,800 11,000
March 2007 March 2008 Sept 2008
Billion IRR
Sept 2008 March 2008 March 2007 March 2006
Definition
304,844 310,517 249,905 171,668
Total risk weighted assets
13,034 12,085 15,366 11,779
Total capital tier 1
13,034 12,085 15,366 11,779
Total accountable capital tier2
24,194 22,296 30,402 23,228
Total base capital
7.94 7.18 12 13.5
Capital adequacy ratio
00 05 10 15 March 2007 March 2008 Sept 2008
12% 7.18% 7.94%
%
Sept 2008 March 2008 March 2007 March 2006 Defin inition ition 66,982 68,165 46,897 43,136 Foreign currency asset 76,337 78,484 52,405 49,788 Foreign currency liabilities (14,787) (15,029) (9,941) (10,910) Open position 17,608 8,744 16,085 11,902 Base capital (0.84) (1.72) (0.62) (0.92) Ratio of open position against base capital Billion IRR
The bank's overseas activity commenced in 1961 with the establishment of Hamburg branch in Germany. BSI has the largest FX and international banking network with 21 overseas branches, 3 overseas regional
independent banks & 2 joint venture banks outside of Iran. The Bank also offers FX services through its 122 branches inside Iran.
Independent Banks:
Joint Venture Banks:
Regional Offices:
German Regional Offices:
Lebanese Regional Offices:
Persian Gulf Head Office :
Paris branch in France Athens branch in Greece Ashkhabad branch in Turkmenistan
Paris 14% Athens 8% Hamburg 3% Frankfurt 9% Bank Saderat PLC 11% Muscat 1% Future Bank- Bahrain 6% Lebanon 2% Persian Gulf Region 45% Qatar 1% Ashkhabad 0% Arian Bank 0% Tashkent 0%
420 , 744 , 304 , 8 Total Assets in US$ :
Paris 6% Athens 3% Hamburg 5% Frankfurt 7% Bank Saderat PLC 25% Muscat 5% Future Bank- Bahrain 8% Lebanon 1% Persian Gulf Region 35% Qatar 2% Ashkhabad 1% Arian Bank 1% Tashkent 1% 217 , 069 , 522 Total Capital in US$ :
Paris 4% Athens 5% Hamburg 3% Frankfurt 5% Bank Saderat PLC 27% Muscat 3% Future Bank- Bahrain 6% Lebanon 1% Persian Gulf Region 39% Qatar 4% Ashkhabad 1% Arian Bank 1% Tashkent 1%
140 , 937 , 928 Total Shareholders’ equity in US$ :
Paris 5% Athens 5% Hamburg 2% Frankfurt 5% Bank Saderat PLC 15% Muscat 1% Future Bank- Bahrain 5% Lebanon 1% Persian Gulf Region 56% Qatar 5% Ashkhabad 0% Arian Bank 0% Tashkent 0%
556 , 757 , 196 Total Profit in US$ :
This graph shows the growth of the Bank’s profit. The Bank’s income has increased from
23.5%.
4,008,684 5,066,772 5,915,249 2,464,841 3,274,536 3,756,604
1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000
Income expenses
Million IRR
In spite of the growth of assets in the financial period 2006-2008, the return on assets has decreased, which reflects a change in assets’ quality of overseas branches . However, the growth of average return
3.11 2.25 2.39 17.81 20.36 20.95 31.91 34.15 36.91 10 20 30 40 2006 2007 2008 Return on Asset Return on Shareholder Equity Return on Capital
Board of Directors Managing Director
Supervising Board Member Services & Support Affairs Financial Affairs
Supervising Board Member
Credit & Investment Affairs Legal Dept.
Supervising Board Member
BSI Provinces Affairs Human Resources Affairs Supervising Board Member
Free Trade Zones Supervisory
Planning & Programming Affairs Tehran Provincial Affairs International Affairs
Research & Innovation Dept..
Security Dept.
Public Relations Dept. Inspection & Internal Auditing Dept.
Secretary department
Internal Audit Committee Credit & Risk management committee
Total M.A. and PhD B.A. and Associate of Science High School Diploma Description Front office Back office Total
High School Diploma 17,798 58% B.A. and Associate
Science 12,492 41% M.A. and PhD 427 1%
58% 41% 1%
Front office
High School Diploma B.A. and Associate of Science M.A. and PhD
57% 39% 4%
Back office
468 539 614 400 450 500 550 600 650 March 2006 March 2007 March 2008
Million IRR
March 2009 March 2008 March 2007 March 2006 March 2005 Description All Branches Number of on-line branches Number of ATM Number of POS Number of PINPAD Number of credit cards
6.9 4.9 3.9 2.5 1.3
Total issued cards mil.
Number of on-line accounts mil.
(savings , current, short and long -term accounts) Average daily contact for telephone banking Number of customers receiving statements via SMS Number of customers requesting banking services via mobile phone Number of customers requesting banking services through internet
Annual Sepehr transactions mil.
24/7 branches
1,146 1,842 2,784 3,230 3,276 1,000 1,500 2,000 2,500 3,000 3,500 March 2005 March 2006 March 2007 March 2008 March 2009
529 718 1,482 1,655 1,919 500 700 900 1,100 1,300 1,500 1,700 1,900 2,100 March 2005 March 2006 March 2007 March 2008 March 2009
468 2,148 20,029 85,000 171,394
40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000
March 2005 March 2006 March 2007 March 2008 March 2009
1,298 1,758 3,005 4,719 4,920
2,000 3,000 4,000 5,000 6,000
March 2005 March 2006 March 2007 March 2008 March 2009
666 6,022 10,665 21,276 59,526
20,000 30,000 40,000 50,000 60,000 70,000
March 2005 March 2006 March 2007 March 2008 March 2009
1,337,391 2,485,562 3,983,004 4,861,833 6,920,040
2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 March 2005 March 2006 March 2007 March 2008 March 2009
227,079 7,163,114 14,289,896 18,068,983 22,369,694
10,000,000 15,000,000 20,000,000 25,000,000 March 2005 March 2006 March 2007 March 2008 March 2009
1,400 20,524 30,694 43,552 56,501
20,000 30,000 40,000 50,000 60,000
March 2005 March 2006 March 2007 March 2008 March 2009
8,800 16,687 28,272 38,300 43,603
20,000 30,000 40,000 50,000
March 2005 March 2006 March 2007 March 2008 March 2009
200 61,862
20,000 30,000 40,000 50,000 60,000 70,000
March 2007 March 2008
3,189 31,195 75,991
20,000 30,000 40,000 50,000 60,000 70,000 80,000
March 2007 March 2008 March 2009
705 1,168 1,462
500 1,000 1,500 March 2006 March 2007 March 2008 Million
8 37 51
10 20 30 40 50 60
March 2007 March 2008 March 2009
Performance and expectation of the bank’s profit & loss in March 2010 Unaudited performance at March 2009 Performance and expectation of bank in March 2009 Revised performance as at March 2008
DESCRIPTION 33,139 26,811 22,439 19,688 Total joint earnings 20,000 14,325 (13,853) 11,393 Paid profit 742 Fees for management of investment from depositors 19,082 14,122 (13,111) 10,875 Net paid profit 14,057 12,689 9,328 8,813 Bank’s fees and income from joint earning 15,347 13,853 15,128 10,165 Total non joint earning 29,404 26,542 24,456 18,978 Total bank’s earnings 24,805 22,753 (21,163) 17,423 Total expenses 4,599 3,789 3,293 1,555 Profit (loss) before tax 1,172 (685) Tax 3,427 3,646 2,608 1,233 Profit (loss) after tax 16,803,000,000 16,803,000,000 16,803,000,000 16,803,000,000 Number of shares 155 EPS - IRR
Billio lion IRR
50 100 150 200 250
Revised performance
Expectation of the year March 2009 Not audited performance
March 2009 Expectation of the year March 2010
73 155 217 204
IRR
The increase in earnings per share in 2008 included: Improved foreign exchange dealing of 61 RLS per share. Recovery of bad debts of 48 RLS per share. Sale of shares in Ghadir investment Co. of 15 RLS per share.
Merging or closing non-efficient branches. Restructuring the Bank for higher efficiency. Process Re-engineering plans. Risk Management and Credit Rating. Improve productivity of Human Resources. Extension of new branches and subsidiaries around the world. Diversify to Electronic Banking service terminals and products. Increasing quantity and quality of POS, Internet & Mobile banking services.
Bank
IT Company NIC Brokerage Company (BSI brokerage) Exchange Company (Sepehr)
Establishment of Insurance Company
Investment Company Ghadir
Bank k Saderat Iran has excellent ent potent ntial al for investment stment with some special al characte acterist ristics cs as detailed led below:
Havin ing g unity, cultur ure and history
ing. Havin ing g more than 30 30 licenc nces for Bank Saderat Ostans ns (provin inces). Havin ing g the scope pe of operatio ion at nation
l and interna rnatio iona nal levels ls. High gh investment nt in electron
ng and leadi ding ng in the Irani nian n market. High gh transpa parenc ncy on all activitie ivities. More than 80 80% of branch h premises are owned d by the bank. k. Facin ing a mini nimum level l of risk k because use of diversifica icatio ion n of accou
nts and geographi phical locatio ion. n. Havin ing g high h potential ntial to create added d value ue after r privatisa isatio ion by convertin ing g weakne knesses and threats in to opportun unitie ies. Bein ing g profit itable even in the harde dest of times.