strategy review evaluation

8/7/2019 Strategy Review Evaluation

1/14

Strategy Review Evaluation

Dubai Islamic Bank Pakistan

Presented toSir Shahbaz Islam

Presented byNaveed 6395

M Sumair 6424Waqas 5931

HammadShoaibShabbir


2/14

IntroductionDubai Islamic Bank Pakistan Limited (DIBPL), commenced operations in

2006. Since then, DIBPL has undertaken major initiatives to expand itsbranch network across the country. Under its consumer banking division,the bank is offering state-of-the-art Sharia compliant products thateffectively compete with those being offered in the market by conventionalbanks. It also has expertise in providing Retail, Private, Small and MediumEnterprises, Corporate, Investment Banking and Advisory services.The Bank launched Pakistan's first Islamic Visa Debit Card and introducedfinancial products covering Home Financing, Auto Financing, andDepository products.DIBPL has also introduced Priority Banking and Internet Banking, both ofwhich are being recognized as benchmark products in their respective

categories. Besides regular banking services, the Bank is committed tobringing foreign investment to the country. DIBPL's corporate wing hasactively pursued foreign investors and convinced world renowned giantsfrom the GCC to be part of Pakistan's economy.DIBPL is 100% owned by Dubai Islamic Bank PJSC (Public Joint StockCompany) and its nominated shareholders. The parent company is a listedcompany in Dubai.


3/14

Vision

Mission

Dubai Islamic Bank Pakistan will be the leadingprovider of world class banking the Islamic way bybeing the first choice of our customers and ouremployees.

Dubai Islamic Bank Pakistan provides Shariacompliant financial services and products throughthe best of innovation, talent and technology.


4/14

NUMBER OF BRANCHES

Dubai Islamic bank currently has 39 branches in Pakistanfollowing is the comparison of 3 years with industry andIslamic banks .


5/14

Category 2007 2008 2009

DIBPL 17 25 39

Industry 7,390 8,078 8,431

Islamic banks 186 383 478

MBL 100 166 201

SCB 143 174 162

BI 36 102 102


6/14

II. Measure Firm Performance

III.

TakeCorrective

Actions

Differences?

Differences?

Yes

Yes

NO

I. Review Underlying

Bases

Continue present course

NO

Evaluation FrameworkEvaluation Framework


7/14

Strategies Followed by Bank

Dubai Islamic bank ltd willing to increase the market shareand following the expansion strategy by opening newbranches .


8/14

External Factor Matrix (EFE)

WEIGHT RATING WEIGHTED SCORESEXTERNAL FACTORS

OPPORTUNITIES

O1:

0.3 2 0.6Fastest Growing Religion in

the world

O 2:

Expansion to domestic and

international market

0.15 2 0.5

O3:

0.2 4 1Reduce transportation cost

THREATS

T1 :

New Entrants in the banking sector0.2 3 0.7

T2:

0.15 2.5 0.375Legislative Regulation of non-

returnable container

1.00


9/14

INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORESCOMM

ENTS

STRENGTH

S1:

strong market in middle

eastern countries

0.3 4 1.2

S2:

Customer focus0.2 4 0.8

S3:

Technical expertise0.15 3 0.6

S4:

Low transportation cost.0.15 3 0.45

WEAKNESSES

W1:

high distribution cost

incurred

0.1 3 0.3

W2:

Limited Product lines.0.1 2 0.2

TOTAL 1 3.55

Internal Factor Matrix (IFE)


10/14

FINANCIAL RATIO ANALYSIS

DUBAI ISLAMIC BANK PAKISTAN LIMITED

FINANCIAL RATIOS

2007 2008 2009

2010

Projected

Return On Investment (ROI) -13.07% -5.38% 5.83% 0.45%

Return On Equity (ROE) -8.50% -3.60% 3.75% 0.30%

Profit Margin -25.35% -5.94% 5.65% 0.41%

Debt To Equity 3.71 5.04 4.63 5.21

EarningPer Share (0.89) (0.35) 0.38 0.02

Sales Growth 614.05% 143.26% 33.90% 10.66%

Asset Growth 152.64% 50.41% 10.35% 14.29%


11/14

RETURN ON ASSETS

DIBPL DIBPL v INDUSTRY DIBPL v ISLAMIC BANKS


12/14


13/14


14/14

strategy review evaluation

Documents