First Dawood Investment Bank Limited (FDIBL) was incorporated on June 22, 1994 as Dawood Leasing Company Limited, with a paid up capital of Rs. 250 million. It is listed on the Karachi Stock Exchange in Pakistan. Against the public offering of Rs. 95 million, the company received a subscription of over Rs. 140 million despite bearish market conditions at the time of floatation. After thirteen years of business operations, a balance sheet size of over Rs.12.22 billion was achieved. Not only that FDIBL made consistent profits over these 13 years and paid handsome returns to investors and shareholders.
The financial & liquidity crisis of 2008-09 resulted in abrupt withdrawal of credit and money market lines by commercial banls towards NBFCs (investment banks, leasing companies, Modarabas etc) due to which FDIBL was also subjected to an uncalled for run by the creditors. FDIBL attended the creditors concerns and within a span of one year settled more than 70% of its liabilities through its assets. In this manner, FDIBL has paid off over 95% of its liabilities which at the height of the crisis were to the tune of Rs.10.0 billion.
Today, the balance sheet size has come down to less than Rs.1.0 billion from Rs.12.0 billion, but equity continues to be Rs.450M primarily due to ‘Deferred Tax Assets’ (DTA) amounting to Rs.315 million, but since FDIBL’s license has not be renewed, therefore external auditors have qualified their opinion with respect to ‘DTA’. But hopefully with renewal of license, which FDIBL is contesting in search of justice will help it to remove the qualification.
FDIBL is now on the path of regaining its lost position, as out of Rs.10.0 billion worth of liabilities; now only less than Rs.400 million remain outstanding. The concerted efforts have helped FDIBL to comply with necessary requirements to make it a fully operational investment bank.
The future plans of FDIBL include, the initiation of real Shariah complaint activities which will not take advantage of prevailing interest rates in the country, as presence of interest / Kibor continues to contaminate the spirit of Islam with Riba. Since First Dawood Group has adequate experience in real estate and rental property businesses, therefore FDIBL also intend to venture in the area by both owning and building properties for investors. Presently, the envirnomment in country encourages construction and real estate business because His Excellency Prime Minister Imran Khan is not only taking keen interest but has started new projects which will support the economy and create jobs for all sections of the society.
Area of BUSINESSES
Earlier FDIBL in the business of; leasing, loans, real estate, IPOs, Pre-IPOs, underwriting public issues, Trustee to corporate bonds / mutual funds, money market brokerage, banker to public issues etc.
Status: “Public Interest Company”
KSE Symbol: FDIBL
NTN No.: 0698109-7
Company Registration No.: K-05425
Member: Non-Banking Financial Institution – (NBFI)