as of Bank Pasargad Presentation2016/12/20 · MIDHCO was established in year 2007 by Bank Pasargad Financial Group with a registered capital of 1,000 million Iranian Rial. In In

The Millennium Bank

No. 430, Mirdamad Blvd., Tehran 1969774511, Iran

Tel: (+9821) 82891575; Fax: (+9821) 88649521 - website: www.bankpasargad.com - SWIFT: BKBPIRTH

31, August 2015 No. 430, Mirdamad Blvd., Tehran 1969774511, Iran

Tel: (+9821) 82891041; Fax: (+9821) 82891029 - website: www.bankpasargad.com - SWIFT: BKBPIRTH

The Millennium Bank

Bank Pasargad Presentation As of

20 Dec. 2016

as of

20 October 2015

BANK PASARGAD The Millennium Bank

History

Our Vision

Mission

Adherence & Compliance to

International Regulations

Organizational Chart

Executive Board Members

Changes in Capital

Subsidiaries and Affiliates

Branches

Electronic Banking Services

Total Asset Growth

Assets and Liabilities Structure

Total Owners’ Equity Growth

Key Performance Measures

Financial Ratios

Deposits

International Development

Competitive Advantages

Corporate Social Responsibility

Awards and Achievements

01

03

04

05

06

07

09

10

11

15

16

30 17

18

25

19

20

Human Capital

21

27

28

29

32

Table of Content

02

Bank Pasargad Financial Group

Adherence & Compliance to

Domestic Regulations

Shareholding Structure

12

33

31

Market Share

Board of Directors



International Operations 22

13

23

24

34

FANAP 35

36

37

PEDC

PEDC

MIDHCO

Nassim Salamat Pasargad

14 Market Share

26 MIDHCO

Bank Pasargad at a Glance

08

38

Net Profit of 15 Iranian banks

History

Sept. 2005

Banking operation's license No.

H/2849 granted by the Central

Bank of Iran on 13 September

2005

Dec. 2006

License for full international

banking operations granted by the

Central Bank of Iran on 12

December 2006

Aug. 2011

Shares were listed on the Tehran

Stock Exchange (TSE)

1


Bank Pasargad is a fully private bank listed on the Tehran Stock Exchange with more than 1.5 million direct and

indirect shareholders providing more than 3.99 million clients with a wide-range of banking services in both

local and foreign currencies in compliance with international laws and regulations.

To become the best financial services company in the

Middle East banks and to be ranked among the world’s

top 500 corporations. Adherence to our core values and principles so

fundamental for our success

Sustainability of development and growth in

both domestic and international markets

Commitment to innovation, customer satisfaction,

value creation and sound investment decisions

Providing a full range of banking and financial

services for private and corporate clients.

We will do so by:

Our Vision

2


Our mission is to realize high returns and further prosperity for our stakeholders by assuring a continuous

and sustainable growth for the bank and by having an impact on the growth of the national economy

To remain committed in assisting companies to grow both domestically and internationally, enabling

businesses to thrive and economies to prosper

To fulfill our corporate social responsibilities and remain faithful to our core values of honesty, integrity and

creativity

To always remain a fully “customer-focus” financial institution by relying on a rich

organizational culture and sound fundamental values

Our Mission Statement

Mission

3


Establishment of a performing and inclusive

international network of branches and

subsidiary banks,

International Development

Bank Pasargad’s future international

development shall be based on 3

pillars:

Opening Bank Pasargad’s shareholding

structure to strategic investors as well as

global and regional banks,

Being listed on a major foreign stock

exchange.


Pasargad Bank Holding Co. (BHC)

Pars Aryan Investment Co.

Bank Pasargad

Pasargad Financial Group consists of the bank, 4 specialized holding companies and 68 subsidiaries of which

11 are consolidated with the bank’s financial statements :

Pasargad Financial Group

5


Arzesh Afarinan Investment Co.

Financial & Insurance Sector

Companies

Insurance

RE-Insurance

Leasing Co.

Brokerage

House

Exchange House

Pasargad Real Estate

Development & Construction

Sector Companies

Industrial Parks

Office Buildings

Residential

Buildings

Leasing of

Residential

Properties

ICT Holding Co. (FANAP )

Iran’s largest Private ICT Co. 2,500 Employees Networking Telecommunications Smart City Core Banking Core Insurance Smart Building EFT Payment Switch Credit/Debit Cards Payment Solutions ERP Fixed Communication Provider (FCP) IPTV MVNO

Pasargad Energy Development

Holding Co. (PEDC)

Oil & Gas Upstream/Downstream Power- 6 Power Plants 2 Refineries 5 Pipeline Projects 2 Jack-up Rigs Offshore/Onshore Drilling Offshore Platforms

Hospital & Hotel Holding Co.

(NSP)

7 Hospitals of 1.000 beds each Hotels for 7.000 beds 7 Universities 7 Residential Development Projects

Mining & Industrial

Holding Co. (MIDHCO)

15 Subsidiary Companies 3 Steel Companies (Sirjan, Zarand &

Butia) Sirjan & Zarand Iron Ore Plants Copper Cathode Plant Copper Pipe Plant Metal Coke Plants Ferro Silicon Alloy Plants Coal Concentrate Plants Sponge Iron Plants Trading of Minerals Co. Eng.& Construction Companies

Tamin Atieh Pasargad Employee Fund

8

Bank Pasargad at a Glance (as of 19 March 2016)


6

Subsidiaries and Affiliates

7

ICT

Insurance & Re-Insurance

Stock Brokerage & Exchange House

Investment

Machinery Leasing

Mining & Industrial Activities

Oil & Gas

Energy & Power

Construction Leasing

Real Estate Development & Construction

Pars Aryan Investment PLC, is the holding

company of the Pasargad Financial Group

owning 9.88% of the bank’s shares. This

table shows the banks’ main subsidiaries

and affiliates as of 20 Dec. 2016:

Bank Pasargad Financial Group consists of the bank and 68 subsidiaries active in the fields of:

Some of the Companies Bank’s Share

% Million IRR

Pasargad Arzesh Afarinan Co. 97.995 7,447,639

Pasargad Leasing Co. 67 448,900

Pasargad Electronic Payment Co. 30 300,000

Bank Pasargad Brokerage Co. 49 71,050

Pasargad ICT Co. (FANAP) 49 1,216,180

Middle East Mabna Co. 44 2,567,001

Pasargad Insurance Co. 20 330,926

Pasargad Machinery & Equipment Leasing Co. 18 54,115

Pasargad Exchange Co. 90 198,288

Iranian Re-insurance Co. 4 80,915

Nasim Salamat Pasargad Co. 34 680,000

Pasargad Rahyaft No Avar Institute 15 19,150


FANAP

8

FANAP is Pasargad Financial Group’s ICT holding company


FANAP is a world class ICT holding company delivering creative and tailored solutions to

customers worldwide through smart technologies and services based on their needs and values.

FANAP has been providing smart solutions for diverse industries by combining its rich technical

resources with strong R&D. This is complemented by a professional business development unit

bringing the solutions of tomorrow to its customers today.

FANAP benefits from a human resource of more than 1800 skilled knowledge worker and

possesses a vast range of solutions that could cater to the needs of different businesses both

private and governmental making them smarter and more efficient organizations.

FANAP provides optimal ICT services and solutions; ranging from financial enterprise solutions,

Transaction processing engines, E-Payment networks, ICT Infrastructure, IPTV, MVNO, FCP, IT

outsourcing services to Mobile Communication and value added services.

Today, FANAP is supporting and providing services to:

12 Banks in Iran

All 3 Iranian mobile operators

3 major municipalities in the 3 major Iranian cities of: Tehran , Isfahan and Mashhad

Pasargad Energy Development Company (PEDC)

9

PEDC is Pasagad Financial Group’s Energy Holding Company


Formed in April 2008 with the objective of participating in the national and international energy markets in general and the development

of Iran's energy sector in particular, today PEDC has more than IRR 25,000 billion (app. USD 833 million) of well diversified assets

under management. It’s core business consists of: Hydrocarbon sector, Power Generation and Renewable Energy.

Oil & Gas – PEDC’s activities in Oil & Gas Sector is divided to: (i) Upstream (Exploration & Exploitation, Drilling Services)

(ii) Downstream (Refineries and Petrochemical Complexes, Storage & Pipelines)

Upstream Drilling Services: PEDC has established subsidiaries to render Drilling Technical Service mainly but not limited to Well

Logging, Well Testing and Directional Drilling. Petro Danial Kish Company (PDK) was established in 2010 as a Drilling Technical

Service Company for oil industries. PDK has purchased all well logging machineries and equipment from reputable European and

Canadian manufacturers and is able to provide bore hole petro physical and completion services such as Open Hole Logging,

Perforation, Setting Packers and Plug with its Digital Advanced System. Petro Kariz Company has also been incorporated for

Directional Drilling services and has rendered its services form early 2015.

Upstream Drilling Jack-up Services: In late 2010 PEDC finalized a contract for purchasing two drilling Jack-up rigs specially designed

for operating in the Persian Gulf. The first Jack-up rig was delivered and became operational in Phase 21 of South Pars gas field. The

second jack-up rig will be delivered in 2016 and shall be operational in different oil and gas development projects.

Upstream Software Development: In order to carry out research and development work towards production of very complex software

related to energy in general and petroleum engineering in particular, an engineering company (TAFAHOM) was formed in late 2012.

Upstream- Oil & Gas field Development: National Iranian Oil Company(NIOC) Has devised new form of contracts, IPC(Iranian

Petroleum Contracts), for its oil field development, in which the contract would be awarded to foreign companies with Iranian joint

venture or individually to Iranian competent companies. An exploration, Development and Production (E & P) company is being

established by PEDC to undertake related upstream activities in the framework of IPC contracts.

Pasargad Energy Development Company (PEDC)

10

PEDC is Pasagad Financial Group’s Energy holding Company


Downstream – Refineries: The current production of local refineries can supply almost 70 percent of the national demand and the

rest of Iran’s consumption needs are to be imported. Refineries in Iran enjoy the privilege of convenient feed availability at

compatible prices. These opportunities coupled with the strategic location of Iran in the Middle East, furnish the right environment

for establishing new refineries. PEDC is presently developing 2 refineries: Qeshm Heavy Oil Refinary (35,000 Barrels/Day) and

SIRAF Condensate Refinary(60,000 Barrels/Day).

Down stream – Petrochemicals & Related Industries: Based on the availability of feedstock at a premium rate, many operational petrochemical plants, technical expertise and a vast

local market coupled with extensive experience, Iran petrochemical industry with its solid foundations promises a bright future for

investment. Benefitting from this occasion, PEDC has studied upstream and downstream petrochemical projects with a suitable

rate of return and invested in: Sina Petrochemical Co., Romak Petrochemical Co., Fajr Kerman Petrochemical Co. & Hidaj

Petrochemical Co.

Down stream – Trunk Pipeline: In June 2015, PEDC signed a BOT contract with National Iranian Gas Company to export 40 million(Nm3/Day) of natural gas to

Iraq. The pipeline is 580 KM long and with a diameter between 48 & 56 inches. 5 Gas Compressor Stations will be installed along

the pipeline to maintain the transportation pressure to destination. This project is to be constructed within 2 years

.

Power Generation - The nominal capacity of all power plants of the country is expected to grow almost 3 times by the end of 2025

which together with the growing regional market translate to a great opportunity for investment in this industry. Present Power

Plants include:

• Khoy 350 MW Power Plant

• Uromyieh 950 MW Power plant

• Mashhad Shariati 500 MW Power Plant

• Qeshm 500 MW Power Plant

• Sirjan Power Plant (25 MW CHP)

• Expansion of Uromyieh Power Plant (+480 MW)

MIDHCO

11

Middle East Mines Industries Development Holding Company


MIDHCO was established in year 2007 by Bank Pasargad Financial Group with a registered capital of 1,000 million Iranian Rial. In

year 2011, MIDHCO was listed on Tehran’s OTC Market and is now operating as a Public Joint Stock Company (JSC) with 11,609

shareholders and a capital of 22,000 billion Iranian Rial (USD 730 million).

MIDHCO’s products are: Iron Ore Concentrate, Iron Ore Pellets, Sponge Iron, Coal Concentrate, Metallurgical Coke, Ferrosilicon,

Steel Billet & Bloom, Copper Cathode ,Copper Tubes, Lime, Dolomite and Electricity.

In Production

No Name

1 Zarand Iranian Steel Co. “ZISCO”

2 Sirjan Iranian Steel Co. “SISCO”

3 Butia Iranian Steel Co. “BISCO”

4 Iranian Babak Copper Co. “IBCCO”

5 Pabdana Faravaran Coal Co.

6 Gharb-e-Pars Ferrosilicon Co. “FESICO”

7 Middle East Mines Renovation & Development Co.

“MEMRADCO”

MIDHCO presently has 7 subsidiary companies focusing on production and 8 subsidiary companies specialized in service:

In Service

No Name

1 Middle East Meyare Sanat Engineering Company

2 Iranian Industrial Development & Renovation Construction

Co. “MANA”

3 Samengan Tarabar Co.

4 Middle East Karavaran Sanat Co. “MIEPCO”

5 Middle East Aftab-e-Derakhshan Commercial Co. “MESCO”

6 Middle East Aftab Derakhshan Brokerage Co.

7 GMI Project Ltd

8 World Mining Industry Co. “WMI”

MIDHCO

12

Middle East Mines Industries Development Holding Company


MIDHCO shall achieve the following production levels in near future:

MIDHCO has invested in excess of USD 5 billion in different projects:

• Sirjan Pellet

• Butia Pellet

• Bardsir Steel Making

• Cathode Copper

• 2nd Hamedan Ferrosilicon

• Tabas Coal Washing

• Lime and Dolomite

• Zarand Blast Furnace and Steel Making

• Butia DRI and Steel Making

• Butia Power Plant

• Khomrood Coal Mine

No Product Amount (Tonne)

1 Iron Ore Concentrate (68%) 8,000,000

2 Coal Concentrate 978,000

3 Metallurgical Coke 800,000

4 Cathode Copper 50,000

5 Ferrosilicon 24,000

6 Sponge Iron 3,000,000

7 Iron Ore Pellet 7,500,000

8 Copper tube 12,000

9 Dolomite 132,000

10 Burned Lime 264,000

11 Steel Billet and Bloom 4,200,000

Nassim Salamat Pasargad Holding Company

13

Bringing the best in Healthcare to your door steps


Today, Iran is faced with rapid rise in healthcare spending and lacks more than 110.000 hospital beds. NSP intends to

develop 7 hospital projects in 6 cities under a Public Private Partnership (PPP) scheme with Iran's Ministry of Health (MOH)

in order to bridge this gap. The 6 cities where the projects are to be developed are:

Tehran (2000 Beds)

Qazvin (750 Beds)

Karaj (1200 Beds)

Qom (1000 Beds)

Mashhad (1100 Beds)

Ahvaz (1000 Beds)

Additionally, Iran is presently missing more than 50.000 beds of hotel beds. Specially, there is a niche market for luxury

hotels with world class standings. In 2014, Iran was ranked 10th globally in terms of tourism growth.

Internationally regarded as one the most ancient civilizations, Iran

has 19 sites designated by UNESCO as “World Heritage Sites”.

With the lifting of international sanctions, we expect heavy inflow

of tourism to all Iranian cities and historical sites.

NSP intends to build several world class hotels of high standing

in Iran totaling 7.000 beds to address this need and benefit from

future flourishing of tourism and health-tourism industry in Iran.

Deposits: 12.51% Third among 15 private banks

Facilities Granted: 17.11% First among 15 private banks

Letters of Credit: 43.26 % First among 15 private banks

Guarantees: 15.23% Second among 15 private banks

Investment: 12.14% Third among 15 private banks

Bank Pasargad share of the Iranian banking market among 15 originally established

private banks that are members of the “Iranian Institutional Investors Association”

( as of 20 Dec. 2016 ):

Market Share

14


Today, there are 30 banks in

Iran divided in 5 categories:

(1) 3 State Owned

Commercial Banks

(2) 5 State Owned

Specialized Banks

(3) 4 National banks that were

privatized

(4) 16 Originally established

private banks

(5) 2 Gharzalhasaneh Banks

Deposits: 4.22 %

Facilities Granted: 4.93 %

Bank Pasargad market share among all 30 Iranian banks

(as of 20 Nov. 2016): Market Share

15


Bank Pasargad is a full

licensed bank in Iran

providing a wide range of

banking services in both local

and foreign currencies in

compliance with international

and local laws and

regulations.

Attention to quality of service,

dedication of both

management and staff, high

banking standards and

observation of international

principles are few reasons for

which Bank Pasargad has

achieved significant

milestones in its brief history.

Letters of Credit: 11.57%* Third among all Iranian banks

Investments: 4.42%* Ninth among all Iranian banks

* Based on 19/03/2016 data

Guarantees: 5.11%* Sixth among all Iranian banks

Net Profit of 15 Iranian private banks (as of 20 March 2015):

16


-2,000,000

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

1

12,642,696

3,701,997 3,676,611 3,246,256

2,398,375 2,351,471

2,074,931

1,794,314 1,011,340

975,049 848,518

398,769 56,927

(73,086) (786,315) (1,118,963)

Pasargad Karafarin E.N Ansar Day Sina Average Shahr Saman Parsian Middle East Hekmat Iranian Sarmayeh Gardeshgary Iran Zamin

IRR m.

We fully adhere and comply to all mandatory international legislation

Support of transparency and disclosure of information

Bank Pasargad has adopted a zero tolerance policy with regards to bribery, corruption, money laundering and

non-observance of sanctions

Commitment to Anti-Money Laundering (AML) laws and regulations

Responsibility, Ethics, Transparency & Equity are the 4 essential pillars of Bank Pasargad Corporate Governance

Educated, well trained and resourceful Compliance Department

Appointment of an Independent Auditor & Legal Inspector

Observance of all Central Bank of Iran regulations, requirements and directives

Adherence & Compliance to International Regulations

17


Bank Pasargad is committed to the observance of:

Monetary and Banking Law (Approved in 1972) and its amendments

Usury-Free Banking Law (Approved in 1983)

Money and Credit Council By-Laws

Central Bank of Iran regulations and requirements

Iranian Tax Law

Securities Market Law of Iran

Bank Pasargad’s Articles of Association

Anti-Money Laundering Act (Approved in 2007)

Annual Monetary Financial and Supervisory Policies of Central Bank of Iran

18

Adherence & Compliance to Domestic Regulations


Our Unique History of Success in the Iranian Economy:

Capital Changes (Dates) Increase (Billion IRR) Total (Billion IRR)

Initial Capital (2005) 3,500 3,500

Capital Increase (2007) 1,750 5,250

Capital Increase (2008) 1,750 7,000

Capital Increase (Nov 2009) 700 7,700

Capital Increase (Nov 2010) 15,400 23,100

Capital Increase (13 March 2012) 4,158 27,258

Capital Increase (13 March 2013) 2,742 30,000

Capital Increase (4 August 2015) 12,000 42,000

Capital Increase (20 July 2016) 8,400 50,400

Changes in Capital

19


In the Extraordinary General Assembly dated 22/07/2014, it was approved to increase Bank Pasargad’s Paid-Up capital to

100,000 billion Iranian Rial.

Bank Pasargad is a private bank with a shareholding

structure composed of real and legal entities Shareholding Structure


1 Company

9.88

20.54

28.88

40.70

Ownership (%)

5 Companies

13 Companies &

Individuals

56,318

Individuals &

Legal Entities

Pars Aryan Investment Co. (PLC)

Between 3 – 5 %

Between 1 – 3 %

Below 1 %

Milad Gostar Noavaran Co. (JSC) – 3.69%

Sam Group Co. (JSC) – 3.75%

Pasargad Tamin Atieh Co. – 2.91%

Kharazmi Investment Co. (PLC) – 3.69%

Real Person – 2.54%

Selin Investment Advisory Co. (JSC) – 2.54%

Binesh Pashooh Iranian Co. (JSC) – 2.58%

Real Person – 2.58%

Hamghadam Trade Co. (JSC) – 2.24%

Sahab Omid Iranian Co. (JSC) – 2.29%

Hamyari Kowsar Employee Fund – 1.63%

Saba Capital Management Co. (JSC) – 2.81%

Baroghe Omid Iranian Co. (JSC) – 1.04%

Omid Employee Fund – 1.88%

Hordad Rayan Co. (JSC) – 4.63%

Nik Andishan Soroush Fajr Co. (JSC) – 4.78%

Nazm Avaran Pouya Iranian Co. (JSC) – 1.01%

Danesh Gostaran Atisaz Pouya Co. (JSC)– 2.83%

(As of 20 Dec. 2016)

30.60% of the bank’s shares are owned by real entities and 69.40% of shares are owned by legal entities.

3 Pension Funds of other Iranian banks are major shareholders of Bank Pasargad.

1

20

General Assembly

Legal Auditors

Board of Directors

President

Executive

Board

Vice-

President

Credit Committee

Technology & IT Committee

Innovation Committee

Assets & Liabilities

Management Committee

Human Capital Development

High Committee

Disciplinary Committee

Recruitment Committee

Marketing & Advertisement

Committee

Managing

Bureau Dept.

Public Relations

Management Dept.

Anti-Money

Laundering Dept.

Foreign Assets &

Investment Management

Department

Inspection Management

Dept.

Advisors

Organizational Chart

R & D and

Marketing

Management

Dept.

Legal Affairs

Management

Dept.

Deputy Deputy Deputy Deputy Deputy Deputy Deputy

General

Assembly &

Subsidiaries

Planning

Management

Investment &

participation Dept.

Logistics

Mang.

Dept.

Planning &

Program

Mang.

Dept.

Branch

Affairs

Mang.

Dept.

IT Mang.

Dept.

Financial

&

Treasury

Mang.

Dept. FOREX

Operat.

Mang.

Dept.

International

Affairs

Mang.Dept.

Credits

& Loans

Mang.

Dept.

Risk Manage

Dept.

Economic

and Banking

Studies

Dept.

Human Capital

Development

Management

Dept.

21

Inspection Dept.


Employee

Affairs Dept.

Dept.

Employee

Well-being Dept.

Education Dept.

Research &

Development

Dept.

Marketing Dept.

Legal Services

Dept.

Deeds

Enforcement

Dept.

Compliance

Dept.

Supervisory Risk

Management Committee

Nomination Committee

Strategy Committee

Audit Committee

Credit Risk

Sub-Committee

Market Risk

Sub-Committee

Crisis & liquidity Risk

Sub-Committee

Operational Risk

Sub-Committee

Audit Dept.

Internal Audit Management

Credit Dept.

Follow up &

Collection

Dept.

Credit

Information

Dept. Private &

Corporate

Banking Dept.

Procurement

Dept.

Security

Dept.

Real Estate

Dept.

L/C Dept.

PO, Guarantee

and FX

Accounting

Dept.

Accounting

&

Budgeting

Dept.

Treasury

Dept.

Software

Dept.

Hardware

Dept.

Organization,

Methods &

Planning

Dept.

Provinces

branches

affairs Dept.

East Tehran

branches

affairs Dept.

West Tehran

branches

affairs Dept.

Chairman of the Board of Directors

Tel: (+9821) 82891002

Fax: (+9821) 88649234

Email: [email protected]

Majid Ghassemi

Board of Directors

22

Vice Chairman of the Board of Directors

Tel: (+9821) 82890

Fax: (+9821) 88649233


Zabihollah Khazaei

Board Member

Tel: (+9821) 82891017

Fax: (+9821) 88649234


Kamran Ekhtiar

Board Member

& Planning Affairs

Tel: (+9821) 82891013

Fax: (+9821) 88649234


Ahmad Vadidar

Board Member

Tel: (+9821) 82891011

Fax: (+9821) 88649234


Mostafa Beheshti Rouy


Board Member

Tel: (+9821) 82891019

Fax: (+9821) 88649234


Davoud Mojtahed

Seyed Kazem Mirvalad

Board Member

Tel: (+9821) 88573884-7

Fax: (+9821) 88573888


Chief Executive Officer

Tel: (+9821) 82890

Fax: (+9821) 88649234


Majid Ghassemi

Executive Board Members

23

Executive Board Member in charge of Financial

& IT Affairs

Tel: (+9821) 82891019

Fax: (+9821) 88649234


Zabihollah Khazaei

Executive Board Member in charge of Loan

& Credit Affairs

Tel: (+9821) 82891017

Fax: (+9821) 88649234


Kamran Ekhtiar

Executive Board Member in charge of Bank’s

Branches

& Planning Affairs

Tel: (+9821) 82891013

Fax: (+9821) 88649234


Ahmad Vadidar

Executive Board Member in charge of International

Banking Affairs

Tel: (+9821) 82891011

Fax: (+9821) 88649234


Mostafa Beheshti Rouy


Executive Board Member in charge of

Bank’s Logistic Affairs

Tel: (+9821) 82891015

Fax: (+9821) 88649234


Gholam Hossein Vahidnia

Mohammad Reza Hajian

Executive Board Member in charge of

Risk & Strategic Planning

Tel: (+9821) 82895151

Fax+9821) 88675149


Branches

24

0

50

100

150

200

250

300

350

2006-2005 2008-2007 2010-2009 2012-2011 2014-2013 2016-2015

Number of branches

Item 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Number of

branches 11 82 150 202 233 268 296 297 326 327 327

Bank Pasargad has successfully expanded its network to 327 domestic branches in a short period of time:



25

At Bank Pasargad, only 4.05% of all transactions (approximately 23 million per week) are done at branches.

Approximately 96% of all our clients’ transactions are done electronically eithers by mobile applications, ATM,

POS and other electronic and virtual banking devices.

Total Banking

Transactions (as of 20 Dec. 2016)


4.05%

94.80%

1.15%

At Branches

Electronic Banking Channels

Virtual Banking

Virtual Banking Services,

Electronic Banking Services 26

Online Banking Services,

SMS Banking Services,

Telephone Banking Services,

Email Banking Services,

Mobile Banking Services,

Card Services Include:

Student Card

Health Card

Cash Card

Family Card

Joint Card

Shopping Card

Gift Card

Debit Card

Credit Card

Travel Card


Human Capital

27

Bank Pasargad attributes special attention to employing highly qualified individuals as demonstrated in table

below (capital for the headquarter and the branches according to their educational background and degrees).

In order to upgrade the knowledge and skills of the bank’s employees with latest changes in the global banking

industry, Bank Pasargad continuously organizes in-house training courses.

Human Capital


Work Experience Diploma &

Higher Diploma

University

Graduate Post Graduate PHD Total

0-10 Years 22 2,465 605 - 3,092

10-20 Years 18 340 72 1 431

20-30 Years 3 3 1 1 8

Over 30 Years 151 104 23 9 287

Total 194 2,912 701 11 3,818

Total Asset Growth

28

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

550,000,000

600,000,000

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Index Fiscal Year

2007-08

Fiscal Year

2008-09

Fiscal Year

2009-10

Fiscal Year

2010-11

Fiscal Year

2011-12

Fiscal Year

2012-13

Fiscal Year

2013-14

Fiscal Year

2014-15

Fiscal Year

2015-16

Total Assets

( Million IRR) 56,965,020 95,025,056 122,632,927 179,227,880 221,808,446 297,081,643 377,270,230 447,388,074 534,724,988

Growth % 158.1 66.8 29 46.15 23.76 33.94 26.99 18.58 19.52

Since commencement of its activities, Bank Pasargad has experienced steady asset growth every year


Assets and Liabilities Structure (as of 19 March 2016)

29

12.64% 3.38%

70.70%

3.63%

1.07% 0.00%

1.90% 1.91%

Cash

Due from banks and other credit institution

Credit Facilities Granted

Investments

Intangible Assets

Participation Certificates

Accounts Receivable

Fixed Assets

Other Assets

2.25%

86.35%

1.35%

0.75%

1.18% 6.25% 1.85%

Call Deposits

Term Deposits

Other Deposits

Saving Deposits

Other Liabilities and Accruals

Due to banks and credit institutions

Interest Payable (Depositors)


Total Owners’ Equity Growth

30

4,337,896 7,096,491

10,129,926

12,353,712

31,387,403

38,416,498

45,096,339

52,485,378

63,787,293

75,421,134

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Owners’ Equity

(Million IRR) Total Owners’ Equity (Million IRR)



31

Performance 20th March

2007

19th March

2008

20th March

2009

20th March

2010

20th March

2011

20th March

2012

20th March

2013

20th March

2014

20th March

2015

19th March

2016

Total Income

(Million IRR) 2,140,040 6,746,680 12,963,796 19,977,730 24,807,338 32,370,948 44,443,056 58,115,003 74,037,595 93,009,666

Profit before Tax

(Million IRR) 857,368 1,679,670 2,446,123 3,548,255 6,309,426 10,159,820 14,189,140 16,870,289 13,952,482 12,136,193

Total Equity

(Million IRR) 4,337,896 7,096,491 10,129,926 12,353,712 31,387,403 38,416,498 45,096,339 52,485,378 63,787,293 75,421,134

Total Income (Million IRR)

2140040

6746680

12963796

19977730

24807338

32370948

44443056

58115003

74363286

93,009,666

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

857,368

1,679,670

2,446,123

3,548,255

6,309,426

10,159,820

14,189,140

16,870,289

13,952,482

12,136,193

Mar-07

Mar-08

Mar-09

Mar-10

Mar-11

Mar-12

Mar-13

Mar-14

Mar-15

Mar-16

Profit before Tax (Million IRR)



32

Performance 20th March

2007

19th March

2008

20th March

2009

20th March

2010

20th March

2011

20th March

2012

20th March

2013

20th March

2014

20th March

2015

19th March

2016

Earning Per Share

(EPS) IRR 228 IRR 310 IRR 335 IRR 437.9 IRR 262.53 IRR 360.85 IRR 441.6 IRR 522.3 IRR 301.02 IRR 230.83

Return on Equity

(ROE) 18.41 % 22.91 % 23.15 % 26.65 % 27.66 % 28.18% 31.72% 32.11% 21.75% 16.71%

Dividend Per

Share (DPS) IRR 175 IRR 200 IRR 220 IRR 300 IRR 180 IRR 230 IRR 250 IRR 320 IRR 200 IRR 160

Return on Assets

(ROA) 3.62 % 2.85 % 2.47 % 2.75 % 4.02 % 4.91% 5.11% 4.65% 3.07% 2.37%

Capital Adequacy

Ratio (CAR) 28.29 % 18.02 % 15.87 % 15.91 % 23.92% 23.12% 21.47% 18.85% 17.24% 16.10%


28.29

18.02 15.87 15.91

23.92 23.12 21.47

18.85 17.24

16.1

0

5

10

15

20

25

30

20th March 2007

19th March 2008

20th March 2009

20th March 2010

20th March 2011

20th March 2012

20th march 2013

20th March 2014

20th March 2015

19th march 2016

Capital Adequacy Ratio ( % )

18.41

22.91 23.15

26.65 27.66

28.18 31.72 32.11

21.75

16.71

0

5

10

15

20

25

30

35

20th March 2007

19th March 2008

20th March 2009

20th March 2010

20th March 2011

20th March 2012

20th March 2013

20th March 2014

20th March 2015

19th march 2016

Return on Equity ( % )

Financial Ratios

33

The following table presents Bank Pasargad's main financial ratios:

Indices March

2009

March

2010

March

2011

March

2012

March

2013

March

2014

March

2015

March

2016

Capital Adequacy

Ratios

Capital Adequacy 15.87% 15.91% 23.92% 23.12% 21.47% 18.85% 17.24% 16.10%

Equity to Assets 10.66% 10.07% 17.51% 17.32% 15.18% 13.91% 14.26% 14.10%

Facilities Granted to Equity 6.32 6.15 3.49 3.57 4.03 4.33 4.31 4.55

Deposits To Equity 8 8.67 4.53 4.45 5.28 5.81 5.49 5.61

Liquidity Deposits to Assets 85% 86% 79.31% 77.14% 80.1% 80.79% 78.30% 79.12%

Asset Quality Facilities Reserves to Total Facilities

Granted 2.32% 3.99% 3.79% 3.58% 3.82% 3.44% 3.90% 4.85%

Performance

Ratios Return on Equity 23.15% 26.65% 27.66% 28.18% 31.72% 32.11% 21.75% 16.71%

Facilities

Composition

Facilities Granted to Total Deposits 81% 71% 77.1% 80.25 % 76.37% 74.47% 78.54% 81.13%

Facilities Granted to Total Assets 67.37% 62.01% 61.15% 61.91% 61.17% 60.17% 61.49% 64.18%

Growth

Assets Growth 66.81% 29.05% 46.15% 23.76% 33.94% 26.99% 18.59% 19.52%

Deposits Growth 69% 31% 32.70% 20.38% 39.06% 28.10% 14.92% 20.77%

Facilities Growth 60.98% 18.80% 44.11% 25.31% 27.28% 25.40% 25.52% 24.75%

Total Income Growth 92.91% 54.10% 24.17% 30.49% 37.29% 30.76% 27.40% 25.62%

Net Profit Growth 44.24% 43.78% 79.84% 62.19% 34.67% 18.29% -19.31% -7.98%

Efficiency Indices

(Million IRR)

Per Capita Income 6,547 8,085 8,842 10,389 13,087 16,671 20,092 24,380

Deposits to Human Capital 34,932 40,137 47,685 52,634 70,070 87,440 95,058 110,891

Facilities Granted to Human Capital 28,345 30,116 38,213 43,809 53,514 65,119 74,659 89,963


Deposits

34

108,684,411

144,745,976

173,865,805

237,957,554

304,815,336

350,288,790

423,049,252

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Description 20th March 2010 20th March 2011 20th March 2012 20th March 2013 20th March 2014 20th March 2015 19th March 2016

Total

(Million IRR) 107,123,424 142,147,511 171,112,476 237,957,554 304,815,336 350,288,790 423,049,252

Deposit Structure

Total deposits stood at IRR 423,049,252 Million on 19 March 2016 compared to IRR 350,288,790 Million on 20 March

2015 showing an increase of 20.77 percent.

Total Deposits Growth (Million IRR)


Type 20th

March

2010

20th

March

2011

20th

March

2012

20th

March

2013

20th

March

2014

20th

March

2015

19th

March

2016

Call

Deposits 4,928,493 9,563,852 8,985,693 17,418,558 16,759,491 13,225,850 10,293,575

Saving

Deposits 921,720 1,639,356 2,847,463 3,713,887 6,217,296 4,963,707 3,438,195

Term

Deposits 96,751,649 123,515,749 144,461,548 194,370,303 261,753,522 317,723,341 394,662,281

Other

Deposits 4,521,562 7,428,554 14,817,772 18,808,044 14,212,326 7,346,020 6,192,506

Interest to

be paid on

Deposits

1,560,987 2,598,465 2,753,329 3,646,762 5,872,701 7,029,873 8,462,695

Issuing documentary credits,

International Operations

35

Bank Pasargad provides a vast array of high quality foreign exchange services to its customers including:

Documentary bills of exchange (Collections),

Advice and negotiation of export documentary credits,

Issuance of letters of guarantee in foreign currency,

Trade finance and project financing,

Opening and maintaining of individual and corporate accounts in foreign currency,

Handling inward and outward payment orders in foreign currencies,

Collection of bills / cheques in foreign currency.


Corporate Culture – Code of Ethics & Code of Conduct

Competitive Advantages

36

Pasargad is all about Customer Service

Dedicated, talented and experienced team

Geographically diversified nationwide network of branches

Issuing various credit and debit cards for different purposes

Training sessions conducted to acquaint the bank's customers with effective use of electronic services


Excellence in Customer Service: “Our customers are the essence of the bank”

Innovation & Vast array of high quality financial products

Size: the only private bank that can compete with national banks

Flexibility & Rapid Responsiveness

Sponsorship of environmental project and investing in environmental educational courses

Corporate Social Responsibility (CSR)

37

Supporting different community events and projects

Granting scholarship to first, second and third ranked applicants of the university

entrance examinations each year

Establishment of Contemporary Visual Arts’ Museum on Oct 2009 and

sponsorship of Art projects

Supporting National sport teams in international tournaments

Organizing athletic contests, and sport events within the banking industry

Conducting of training sessions for customers to acquaint them with effective

use of E-Banking services

Annually organizes diverse ACCA, Grenoble & Nice university training courses for all

Bank Pasargad Financial Group employees


The only Iranian company that annually publishes a CSR Report

24th largest company on TSE based on Market Capitalization and Third among banks (as at 20 Dec. 2016)

Awards & Achievements

38

Named as Best Bank in Iran, “Bank of Excellence” by Euromoney magazine for the years 2015 & 2016

Winner of the Banker’s Award as Bank of the Year 2010 , 2012 ,2013, 2014 , 2015 & 2016 in Iran

Winner of the Banker’s Award as Islamic Bank of the Year 2013, 2014, 2015 & 2016 in Iran

As stated by The Banker magazine for year 2016:

Highest Profit Increase among Iranian Banks & No. 2 Iranian Private Bank by Tier 1 Capital

Winner of the Iranian European Foundation for Quality (EFQM) Excellence Award for years 2012, 2013, 2014 & 2015

being recognized as Iran’s Top Service Sector Company.

Winner of Iran’s Most Admired Knowledge Enterprise (MAKE) Award for years 2012, 2013, 2014 & 2015

being recognized as Iran’s Top Service Sector Company.

Received Gold Medal in World Invention Awards in UK in 2014 for “Smart Queue Management System”

Winner of Iran’s Green Bank Award in 2012

Recognized as the world’s 362nd Top Bank (233rd in year 2014)

Middle East’s 3rd bank by Return on Capital (ROC)

1st bank among all Iranian banks based on Profit before Tax

Middle East’s 2nd bank based on Return on Asset (ROA)


Member of the Asian Bankers Association's Board of Directors

Selected as Iran’s most Productive Bank

Chosen by SACE (Italian Export Credit Agency) as Issuing Bank – MOU signed subject to Implementation Day

Recognized as the world’s 175th Banking Brand in 2017 and the only Iranian bank among Top 10 banking brands in

the Middle East by The Banker with brand value estimated at USD 978 million

Documents

as of Bank Pasargad Presentation2016/12/20 · MIDHCO was established in year 2007 by Bank Pasargad Financial Group with a registered capital of 1,000 million Iranian Rial. In In