Accountable Bank

Urbanization expansion and necessity to paying attention towards housing, caused incorporation of "Bank Rahni Iran" in 1938. Hence, according to the law enacted on 15^th January 1938, "Bank Rahni Iran" was incorporated and commenced it's official operations from the beginning days of the year 1939.

According to the Article 1 of the captioned law, Ministry of Economic & Financial Affairs was authorized to found this bank with a capital of Rls. 200 million together with Bank Melli Iran partnership.

The main subject of the bank operations was the affairs relating to housing sector among which, loan payments against collateralizing related real estate aiming house purchase, construction and completion, repair and facilitation and also granting credit to building and construction companies were the principal ones. It was so that by the victory of Islamic Revolution, bank could grant Rls. 178.3 billion in form of hundreds of thousand loans for housing purposes to the applicants. Bank capital grew up during some steps and in the phase of the banks integration it raised up to Rls. 10 billion.

After Islamic Revolution Victory, and in the way to the banks integration and nationalization during 1979, based on the legal act of the Banks Affairs Management, enacted by Islamic Revolution Council on 7^th June 1979, Bank Sakhteman (Building & Construction Bank), Iranian Banks Construction Investment Co., Kurosh Ekbatan & Pasargad bank in Tehran and other housing loan and savings companies in Mashad, Tabriz, Shiraz, Isfahan, Ahvaz, Gilan, Hamedan, Kermanshah, Mazandaran, Gorgan, Semnan and Abadan all integrated in to the "Bank Rahni Iran", and "Bank Maskan" incorporated. Considering the matter that major part of Bank Maskan is made up of "Bank Rahni Iran" and integrated institutions with Bank Rahni's investment, infact, Bank Maskan is the follower of "Bank Rahni Iran's" operations.

Also, bank capital increased from Rls. 42.7 billion at the integration time to Rls. 473.3 billion at the moment. During integration, the Bank had 97 branches and 66 units and also had designated 3.6% of the total staff in country's banking system.

Bank indicator's growth, demonstrates that comparative statistics of the percentages enjoyed an ascending accretion. In order to better understanding of the Bank's development in different aspects notice the followings:

Above mentioned figures state the fact that Bank operations' range have increased considerably and therefore, it has played a key role in giving banking services and house purchase facilitation for society people.
 

As Bank Maskan Managing Director and Head of Board, this is a great pleasure for me to announce the bank operations along with the profit & loss accounts ended 2002 in a way that we will meet most of the new plans and regulations to achieve the bank goals.

During the year 2002 and with the help of this reputable bank's hard‑working and hectic staff, we could accomplish our major duty as accommodating our compatriots in their own houses beside rendering all banking services and this is our great honour to be one of the development banks in public banking system backed by a half century experience being the best source in house providing and booming the industries dependent on the housing sector and share a part in moving the industrial factors in I.R. of Iran.

During this year we succeeded to convene the bank's extra‑ordinary general meeting at the shortest period of time and get the approval for profit & loss operations ended 2002 demonstrating the efficiency and impact in different aspects and could accomplish paying the difference in clear‑cut interests and on account payments to the holders of investment accounts for the fourth consecutive year, so that during the year 2002 could pay utmost 22.7% more than on account payments interest, in the country's banking system.

Following the precious situations acquired during the past years in the country's economic arena, in 2002, it could grant billion Rials 15,748.7 through 897 branches throughout the country for 371,988 contracts signed and made in housing sector. Besides, Bank Maskan has accomplished to grant 91,611 facilities for other activities, majority of which designated to work office purchase for specialists in medical field of activity, dentists, laboratory affairs, engineering, proxy offices, advertising, art centers and commercial cases.

As a whole net granted facilities during the year 2002 comparing to the year 2001 shows an increase of 50.7% and also bank deposit balances has increased from billion Rials 19,852.5 in 2001 to billion Rials 26,486.9 in 200 2 indicating a growth of 33.9% equivalent to billion Rials 6,734.4.

Despite the lack in the major working instrument as human forces and development of the branches, it has played an active role in promotion of housing sector, augmentation of employment and profitability and all comparative indices indicate that our bank enjoys a considerable productivity in the country's banking network backed by a rampant endeavor . In addition, gaining a profit about billion Rials 1,224 during the year 2002 was the most profitable bank in the whole banking system and from profit index point of view before tax deduction, we could up swing 6 levels among the top 100 companies and from profit index point of view before tax deduction in the whole country's banking system it could acquire the first place. It is worth mentioning that changing the accounting system from cash base to promissory procedure was one of the major accom­plishments considered as vital and principal operation in raise of fiscal information qualitative characteristics, that is to say intelligibility, unfailingness and comparability, so that normally it will help clarifying the banks operations, especially more equitable recognition of the depositors' interest and boost of fiscal qualitative characteristics to be proven and also possibility in rendering useful information based on qualitative and time characteristics.

Moreover, in international section, with increase of foreign affairs branches and being equipped with the modern systems of international exchange and communications, is actively present in international markets and gives different foreign exchange services to it's clients in the shortest way of time and to do this in the best way has established correspondent relations with the most reputable and standing banks worldwide.

At the end, let me express my gratitude to all hardworking bank employees and would like to pay tribute to all the people who trust Bank Maskan.
 

 In the Name of Allah

Dear Mr. Ahmad Farshchian,
Bank Maskan Managing Director.

Bank Maskan operations report during the fiscal year 2002 and presented clarifications in the Bank's General Meeting held on 2003.07.15, illustrates your efficacious endeavor, distinguished members of the board, honorable managers and all distinguished colleagues in your bank.

Bank network development during the past 12 years, promotion in it's situation in the society and attracting the people's confidence, improving the bank's stance from injurious to beneficial and also the highest profit among the country's banking network and increasing the bank dynamism in order to collect deposits and thereafter increasing deposits level to a favorable level and clear‑cut interest payment and for the first time and as the first bank after approval of usury‑free bank operations code, and making possible facility granting to supply one of the basic need of each family, production and delivering 30,000 housing units by Housing Investment Co. and more others, all predicate your inexhaustible diligence and all Bank Maskan honorable colleagues for all above‑mentioned and the following as:

1. Bank Maskan financial statements were prepared and delivered amongst country's banking network during the legal period after Revolution Victory, and the Bank General Meeting was held during the captioned period.

2. Financial statements were prepared both on commitment and integrative basis for the first time.

3. Due to Audit Organization report, the captioned financial statements without any limitation and complication in the clauses were considered as "ACCEPTED".

4. Optimal use of the bank assets and costs drop‑off and also, proper application of bank resources that resulted in remarkable gain for the bank and ...

5. Depositors' clear - cut interest during fiscal year reported was determined and approved like the last 3 years.

Now is the time to present my special words of thanks and other distinguished mem­bers of Bank General Meeting to your measures and hard‑workings and also other members of the board along with bank colleagues. May the God bliss you all.

You are kindly requested to inform all your distinguished colleagues in Bank Maskan throughout the country in the best way.

Tahmasb Mazaheri

Background

"Housing Investment Co." has started it's activities for about 13 years in building 32,000 housing units with total area of 3.8 Million Sq. Meters in form of 193 projects in 25 provinces so that here between and up to now about 24,000 units with about 2.8 Million Sq. Meters were completed and granted.

Furthermore, execution of 20 projects with commercial, administrative and sports applications and the area about 370,000 Sq. Meters and 7 projects for about hectars 360 was one of the total activities of the company from which Mashad Apartment Hotel Complex and Bank Maskan clubhouse and construction of Bank Maskan Supervisories 'projects in 8 cites and also preparation of hectars 102 lands in Arak, hectars 122 and 63 in Pardis Boum‑e‑hen were the most important ones.

In addition to above‑mentioned 2 projects that could be considered as national, exe­cution of the 4th section of Tehran‑Pardis Highway and also Latyan to Pardis Dam water transfer network along with Fanavari Park have started.

At the moment, enjoying from specialist and efficient forces in a comprehensive and wide organ throughout the country this company has been organized (with 14 bran­ches and 3 agents in the cities) and also enjoys fundamental facilities and a long history in "House Mass Production" and a suitable capacity for developing the activities and also plays a more influential role in housing sector.
 

Housing Investment Co.'s Activities During 2002

During the year 2002,design,technical services and advanced supervision to 73 projects with about 615,100 Sq. Meters area was started so that the design of 11 housing units including 6,700 units with the area of 600,000 Sq. Meters in hectars 44 of the lands were also started at the same time.

In addition, during the year 2002,executive operation of 14 projects including 1881 housing units with the total area of 182,734 Sq. Meters was started and the survey regarding the started projects during the captioned year illustrates that during 1993 and 1998 the executive operations starting volume were 1109 and 846 units respe­ctively which was standing at the lowest possible level but immediately after that it reached up to the desired level and in 2002 there was a growth in projects start level compared to 2001.

Besides, during this year, the executive operation of 5 projects related to Bank Maskan Supervisories in Kermanshah, Sari, Rasht, Bandar Abbas and Kish were continued.

It is worth mentioning that during 2002, the executive operation of 14 project including 2526 units with the total area of 263,866 Sq. Meters were ended so that from average 2135 units and 262,467 Sq. Meters area of the past years, 8 percent growth in quantity was gained. 

Other activities of Housing Investment Co. is regarding observing the building national regulations that was carried out aiming the optimal use of fuel consumption and preventing dissipation and current projects including execution of all walls in from of double ‑ glazed ones and use of them in some projects and also use of thermal insulators in ceiling and application of these insulators in the ceiling above pilot floor.