Introduction:
JS Bank Limited incorporated in Pakistan, is a scheduled
bank, engaged in Commercial banking and related services. The Bank’s ordinary
shares are listed on Karachi Stock Exchange in Pakistan. The Bank is a
subsidiary of Jahangir Siddiqui & Co. Ltd. (JSCL). The registered office of
the Bank is situated at Shaheen Commercial Complex, Dr. Ziauddin Ahmed Road,
Karachi. The Bank operates with 211 (December 31, 2013: 211) branches/sub-branches
in Pakistan.
Website:
Key data
The bank has expanded its branch network from 147 in 2011 to
211 in 2013. However, it has stopped expanding its branches in 2014. The bank
also meet minimum capital requirement prescribed by state bank of Pakistan. The
banks deposit growth is also substantial averaging more than 30 % last four years.
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2011
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2012
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2013
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Jun-14
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Capital (‘000)
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7,477,030
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8,955,809
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8,933,893
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10,726,118
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branches
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147
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185
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211
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211
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employees
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1473
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1715
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2082
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NA
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Deposits (‘000)
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41,487,031
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62,543,793
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80,916,125
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94,207,585
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deposit growth %
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57.89
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50.76
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29.38
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16.426219
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Income profile:
The banks net spread income as %age of Deposits declined
from 6.5 % in 2011 to around 4% in 2013-14. The bank barely covers its admin
expenses out of its core banking activity and therefore to some extant banks
income profile is sustainable.
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Income Profile and sustainability
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2011
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2012
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2013
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Mar-14
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Jun-14
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Net Spread Income NSI
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1,728,682
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2,264,640
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2,325,259
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742,834
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900,387
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NSI as % of Deposits T-1
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6.578856833
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5.458669723
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3.717809376
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0.9180296
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1.088427
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NSI /Admin expenses
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0.936021529
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1.07924438
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0.910850052
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0.7948744
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0.992135
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EPS /LPS
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0.42
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0.7
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0.33
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0.13
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0.13
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Leverage:
The bank’s balance sheet is quite leveraged. The leverage
has increased over the period 2011-14. The bank may not increase its assets
including both loan portfolio and investment portfolio without increasing its
equity base. The bank is doing well in improving its loan portfolio. The %age
of non-performing loans has decreased from around 20% of loans in 2011 to 8% in
2014.
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Leverage and Loan Portfolio Infection
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2011
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2012
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2013
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Mar-14
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Jun-04
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Total Assets/equity
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7.18
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9.30
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12.34
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10.919001
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11.59192
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advances/equity
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2.40
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2.29
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3.69
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3.2951563
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3.967385
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Non-Performing Loans/Advances T-1 (%age)
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19.87
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16.86
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13.75
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8.0299517
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7.53843
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Stock Valuation:
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Stock Market Price JS Bank (Jan
2013-Oct 2014)
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Book Value
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Max
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Min
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Range
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Average
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Stock Price
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8.94
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6.58
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3.43
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3.15
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4.86
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Conclusion:
The bank is doing pretty well. It has to increase equity
capital so that it can increase its branch network and asset portfolio.
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