2. Introduction
• Equity or debt instrument (share/stock, bond, note)
that is listed on an exchange and can be readily
bought or sold. A marketable security is a near-cash
(liquid) asset and is recorded at acquisition cost
(purchase price plus incidentals, commissions, and
taxes) or market value (whichever is lower) in the
account books under current assets. Non-marketable
securities include savings bonds and restricted
shares/stock.
3. Marketable securities
• Marketable Securities are a class of investment that the company makes
on a temporary basis. There are two basic types of marketable securities:
– Marketable Equity Securities - any instrument that demonstrates ownership
of shares in a company such as common stock and preferred stock.
– Marketable Debt Securities - any debt security instrument, the most common
being bonds of another company.
• Marketable securities are temporary investments one company might make
in another company in the hopes of providing higher returns to its
investors. For example, an investment in marketable securities may
provide stockholders with a higher return than a cash account with a bank.
4. Company Background
• Meezan Bank Limited is a publicly listed company offering
Islamic Banking in Pakistan. It was first incorporated on
January 27, 1997, starting operations as an Islamic investment
bank in August of that year. In January 2002, Meezan Bank
was granted Pakistan's first full-fledged commercial banking
license dedicated to Islamic Banking, by the State Bank of
Pakistan.
– The Banks main shareholders are financial
institutions, including the Pak Kuwait Investment
Company, the ‘Islamic Development Bank of Jeddah’, and
the ‘Shamil Bank of Bahrain’.
5. Vision
“Establish Islamic banking as banking of first
choice to facilitate the implementation of an
equitable economic system, providing a strong
foundation for establishing a fair and just
society for mankind”
6. Mission
“To be a premier Islamic bank, offering a one-
stop shop for innovative value-added products
and services to our customers within the
bounds of Shariah, while optimizing the
stakeholders’ value through an organizational
culture based on learning, fairness, respect for
individual enterprise and performance.”
7. Functions
• Personal Banking and Finance
• Corporate Finance
• Commercial Finance
• Project Financing
• Islamic Financial Advisory Services
• Treasury
• Car Ijarah - Car Financing
• Home Financing
• Asset Management
8. Relation with topic
• There are different types of marketable securities held by
Meezan Bank, and the underlying theme among all of them is
that they are traded, or bought and sold, frequently. This is a
sign of liquidity.
• Those marketable securities that are types of bonds or
certificates of deposit must have a maturity date or time at
which a contract expires of no less than 12 months out. Bonds
are debt instruments, while certificates of deposit are savings
certificates, although both pay investors an interest rate over
the life of the contract. These securities trade in the secondary
market, a segment of the financial markets where previously
issued securities are bought and sold.
9. SWOT Analysis
• Strength
– MBL has this privilege to be the first in the Islamic Banking sector which gives
MBL a competitive edge over all other banks and being the pioneer of this
industry MBL is enjoying major share of it.
– The largest Islamic Bank in Pakistan with a network of over 201 branches in 54
cities.
– The members of the Shariah Supervisory Board of Meezan Bank are
Internationally-renowned scholars, serving on the boards of many Islamic
banks operating in different countries.
– Meezan Bank, the largest Islamic Bank in Pakistan has been conferred the Best
Islamic Bank Award by Rawalpindi Chamber of Commerce and Industry.
– Being an Islamic bank, MBL has a wide national network. As an emerging
markets bank, it has branches in all the major cities of Pakistan with the facility
of online banking, it is very easy for its customers to transact all over the
country
10. • Weakness
– Till the last year, MBL had a totally different perspective. The management
was of the view that the customer should come to them and they don’t need to
go to the customer. But in this era of mass marketing and advertising, it is not
possible to stay in competition without these took. The bank has now changed
its perception arid has started an effective marketing and advertising strategy.
But the previous gaps are still there and there is lack of awareness in the people
about the bank and its products. The bank needs to improve on its marketing
and advertising areas.
– Due to the dissatisfaction of staff, there is high turnover among them. People
who find other alternatives do not stay with the bank. Therefore, the bank
incurs loss on their training and development.
– The decision-making is carried out the upper management level and the
subordinates are not included in this process. This creates a sense of insecurity
in the lower managers and that is why there is a lack of loyalty among the
personnel
11. • Opportunities
– House financing sector can be targeted to maximize the profit.
– Growing demand of Islamic financial product and services.
– Venturing into Islamic groups out side the countries as opportunity to
expand business in UAE and Golf states. i-e financial institutions.
– Coming up with. Products for the SME to targeting the medium level
customers.
– Doing business with companies having Islamic mindset. I-e Islamic
financial Institutions.
– Increase branch network within the country
12. • Threats
– Right now there are a few banks that are providing islamic
banking services in addition to the Meezan Bank. These banks
include Bank Islami, Al-Barkah Bank and some branches of
Bank Alfalah which are dedicated for islamic banking services.
That’s why we can say that although there is no intense threat for
the Meezan Bank in the near future but it is not difficult to say
that more banks may enter in this field as the awareness of
islamic banking is increasing among the public. Therefore the
Meezan Bank should not be contented to its present market share
but should strive for providing better and better and modern
services.
– Due to the increase in the number of conventional commercial
banks, there is an increase in competition. Also there is a lot of
aggressive marketing by the competitor banks. This is also a
threat for MBL
13. Conclusion
• The employee turnover is very high which they have to cut down as they
are losing a number of good trained employees due to its poor policy.
• The year 2010 is expected to offer increased competition in the secured
assets business as more Islamic banks are in the market.
• Lack of awareness of Islamic banking in general public.
• Financial information of Meezan bank are not clearly disclose on any
media
• Branches increases but business of Meezan bank may not increase with
same speed
