United Bank Limited
UNCONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2012
U N I T E D B A N K L I M I T E D
Directors’ Report to the Members
On behalf of the Board of Directors, I am pleased to present to you the 54th Annual Report of
United Bank Limited for the year ended December 31, 2012.
Financial Highlights
UBL achieved a profit after tax of Rs 18.0
billion which is 16% higher than last year
and translates into earnings per share of
Rs 14.71 (2011: Rs 12.66). On a
consolidated basis, UBL achieved a profit
after tax of Rs 19.3 billion, an increase of
30% over 2011.
The Board of Directors is pleased to
recommend a final cash dividend of Rs 3.5 per share i.e. 35% and a bonus share issue of Nil for
the year ended December 31, 2012, bringing the total cash dividend for the year 2012 to 85%.
UBL has achieved a pre-tax profit of Rs 27.0 billion which is 12% higher than last year in a
challenging operating environment. This has been achieved despite severe spread compression,
through a growth in the balance sheet, improved non fund income and lower provisions.
The
continually
declining
rate
environment has resulted in yield on
earning assets reducing by 100 bps over
2011. Cost of funds fell by only 13 bps as
the increase in the minimum PLS saving
rate limited rate reduction on deposits.
Consequently, the net interest margin
for 2012 was 87 bps lower than in 2011.
The Bank was able to offset most of this
spread compression through balance
sheet growth, with net interest income declining by 2% to Rs 38.6 billion in 2012.Total
provisions declined by 40% from Rs 7.5 billion in 2011 to Rs 4.5 billion for 2012, while net credit
loss ratio improved from 2.1% to 1.1%.
Non-interest income increased substantially, from Rs 12.7 billion to Rs 17.1 billion, a growth of
35% over last year. Fees and commissions grew by 17% to Rs 8.2 billion, mainly attributable to
U N I T E D B A N K L I M I T E D
increase in remittances, FI commissions, improved general banking fees and cross-sell of
bancassurance. Higher investments in mutual funds resulted in dividend income rising to Rs 2.7
billion, while derivatives income increased to Rs 3.0 billion, primarily on account of one-off
gains.
Cost management
Administrative expenses increased to Rs 23.5 billion in 2012. This increase was largely driven by
the full year impact of the Bank’s 2011 branch network expansion program, substantial growth
in the Omni branchless banking business and UBL’s continuing investments in technology and
business building. On a comparable basis, expense growth was contained to 10% over the
prior year.
Growth in Balance Sheet
UBL grew its balance sheet by 15% over
December 2011. This was primarily
funded by a growth in deposits which
increased by 14.2% to Rs 700 Billion at
December 2012. Domestic core deposits
increased by 16%, while the Bank shed
opportunistic and expensive deposits.
The domestic low cost deposit ratio
also improved, as did the CASA ratio,
which improved from 80% in December
2011 to 83% in December 2012. Gross advances increased by 11.7% to Rs 409 billion in
December 2012, up from Rs 366 billion in December 2011. Despite the reduction in interest
rates, the advances to deposits ratio continued to reduce, in line with the rest of the banking
sector
The Bank was able to deliver better returns as the return on average assets increased from
2.1% in 2011 to 2.2% in 2012 and the return on equity improved from 23.7% to 24.3%.
Strong Capital Ratios
UBL’s capital adequacy ratio (CAR) continued to strengthen year on year due to the bank’s
organic capital generation capabilities. Total CAR improved from 14.3% in December 2011 to
14.8% in December 2012. Tier 1 CAR was maintained at 10.5% as in 2012, the bank paid interim
dividends totaling Rs 5 per share in addition to the Rs 6 per share final dividend for the previous
year. On a consolidated basis, the Tier 1 CAR as at December 2012 was 10.1% whilst total CAR
was 14.7%.
U N I T E D B A N K L I M I T E D
Economy Review
Structural issues have hampered growth and Pakistan’s economy continues to underperform.
The energy demand-supply gap has widened further, with persistent shortage of natural gas.
GDP growth in FY12 was 3.7%, up from 2.7% in FY11. However, Large Scale Manufacturing
growth remains anemic with significant scope for improvement.
Pakistan’s budgetary gap widened further to 8.5% of GDP in FY12. Revenue generation has
continued to lag growth in expenditure, as tax revenues remained at a regional low of 9.2% of
GDP in FY12, even lower than in FY11. The recently announced tax amnesty scheme is yet to be
approved by parliament, but would only be a one-time boost rather than a sustainable
improvement in the tax base. Expenditures continue to rise with subsidies to electricity
consumers still around Rs 30 billion per month, and the government unable to recover this
through improved collection or distribution measures. While amounts received recently from
the Coalition Support Fund have helped reduce the budget deficit to 2.4% of GDP for the first
six months, energy subsidies, losses in public sector corporations and upcoming elections will
keep the deficit under pressure. According to IMF estimates the budget deficit is expected to
reach 7.0% of GDP against a target of 4.7%.
Pakistan’s external account issues have been temporarily smoothed over during the first half of
FY13, due to a declining trade deficit, increased foreign remittances and US$ 1.8 billion received
from the Coalition Support Fund. The trade deficit has reduced by 14% in 1HFY13, as a result of
rising exports, driven by a pick-up in textiles. Imports have also remained subdued due to
improved self-sufficiency on the agriculture front and a judicious import of petroleum and
related products. The country’s current account has posted a nominal surplus during 1HFY13
compared to a deficit of US$ 2.4 billion during 1HFY12. However, overall foreign exchange
reserves have fallen to their lowest levels since FY08. Pakistan’s currency also felt the pressure,
and depreciated by 8% in 2012.
Inflation has been steadily decreasing in 2012, with single-digit numbers posted for each month
of FY13. Inflation fell to 7.93% during December, and has averaged 8.32% for the first half of
FY13. With falling inflation, the SBP has reduced its policy rate by 250 bps over the last six
months to single digits. However, they have cautioned that the potential for further interest
rate reduction is limited and is likely to hinge on how the balance of payments position
develops.
Pakistan’s equity market emerged as one of the best performing markets in the world in 2012,
returning 49% for the year. As interest rates reduced to single digits, equity prices responded
favorably, with gains also fueled by rising corporate profitability in key sectors. Average daily
trading volumes, however, remained low throughout the year despite a net inflow from foreign
investors.
U N I T E D B A N K L I M I T E D
Banking sector deposits maintained their growth trajectory, increasing by 13.8% in 2012.
Banking sector advances grew by 10.4% in 2012, largely due to a settlement of circular debt
during the early part of the year. However, lending to the private sector remained sluggish,
growing by only 3.3% during the year. Excess liquidity in the banking sector continues to be
deployed in government securities. Circular debt in the power sector continues to accumulate,
thus constraining the sector’s borrowing capacity and impeding performance. Non-performing
loans remained relatively under control for the industry, with a 1.2% growth during the first
nine months of 2012. Consequently, the infection ratio reduced from 17.5% in December 2011
to 16.6% in September 2012.
International
The International business remains a key contributor to the profitability and diversification of
the overall UBL franchise. The macroeconomic indicators of the GCC countries have continued
to show improvement leading to a positive outlook and growing business confidence,
particularly in UAE. As a result, the business has revitalized lending within its targeted segment
of the corporate portfolio and also re-launched the Personal Residential Mortgage product in
UAE for top quality customers in select areas. Liquidity management remained a key focus
area, helping to supplement the fixed income portfolio and supporting the development of
wholesale banking, and in particular, the growing Financial Institutions business.
During the year a fully owned banking subsidiary was established in Tanzania to extend UBL’s
footprint to Africa, whilst United National Bank Limited, a subsidiary in UK, adopted the trade
name of UBL UK, to better leverage the strength of the UBL brand.
Core banking system implementation
The year 2012 has been significant in terms of roll out of the new Core Banking System (CBS)
where 988 branches were successfully migrated, bringing the total number of branches on CBS
to 1,246. As a result 93% of total domestic deposits, 98% of total domestic advances and the
entire conventional domestic Trade Finance portfolio are now on CBS.
A formal plan has been developed for implementation of CBS in the International business. In
the first phase, the 8 branches in UAE will be migrated to CBS by the end of 2013.
The first phase of implementation of the Sierra Treasury Management System has been
completed in 2012 with the launch of the Derivatives and Foreign Exchange modules. The next
phase covering Money Markets, Fixed Income and Equities is planned for 2013.
U N I T E D B A N K L I M I T E D
Key developments during 2012
Home Remittances
UBL is now the market leader in the home remittances business with a market share of 22%.
Home remittance volumes increased by 30% in 2012 to US$ 3 billion, earning much needed
foreign exchange reserves for the country. This is a major accomplishment for the Bank and
has been achieved through a superior “Tez Raftar” product offering. There was also a greater
focus in target markets which originate higher remittance volumes, where UBL increased its
overseas sales representation, along with brand building and joint marketing initiatives with
overseas partners, thus improving the Bank’s reach and enhancing partner relationships and coordination.
Acquisition of Khushhali Bank Limited
A UBL led consortium successfully acquired a 67.45% stake for Rs 2.35 billion in Khushhali Bank
Limited (KBL), a leading microfinance bank in Pakistan. In addition to UBL, the consortium
comprises of US and European investors with considerable expertise and experience in the
global microfinance arena, who are expected to bring value towards optimizing the significant
potential of KBL. The consortium has re-constituted the KBL Board of Directors, and is assisting
KBL’s senior management in formulating a new and ambitious long-term strategic vision. UBL
expects that KBL will be able to substantially expand its reach, grow its business and realize cost
efficiencies by leveraging the synergies between KBL and UBL Omni.
UBL already held a 11.73% stake in KBL, which has now increased to 29.69%. Consequently, the
consortium will now hold 79.18% of KBL’s share capital.
Signature
UBL added 4 priority banking “Signature” lounges in 2012 taking the total to 13 and expanding
its reach within the valuable high net-worth segment. Signature was launched in November
2009 and currently caters to over five thousand high net worth customers. Signature provides
a complete range of retail banking products with exclusive and dedicated personnel and
premises and also provides its customers with privileges through alliances with high-end
partners.
The year 2012 also witnessed the launch of UBL's exclusive Airport Lounges in Karachi, free for
use by UBL Signature customers. To date, over 10,000 customers have been served with
U N I T E D B A N K L I M I T E D
numbers growing steadily. UBL also continues to maintain its exclusive relationship with Port
Grand in Karachi, which offers complimentary admission for UBL Signature customers along
with attractive discounts at various establishments.
Instantaneous ATM/Debit Card for Omni account holders
UBL Omni successfully launched Pakistan’s first ATM/Debit card that is provided to branchless
banking customers at the time of account opening. This feature has been very well received
and has resulted in a multifold increase in the number of branchless banking accounts opened.
Collaboration with UBL Funds
UBL enhanced its partnership with UBL Fund Managers by offering its customers opportunities
to invest in UBL’s mutual funds through the UBL network. A nationwide training initiative,
lasting 8 weeks and covering 220 branches, was conducted to provide staff in-depth training on
the promotion and sale of UBL Funds. This has been supported by process improvements at
both ends to facilitate customers. These initiatives will improve cross-sell and deepen
relationships, particularly with high net worth customers, whilst providing them an expanded
product suite and convenient, tax efficient financial solutions.
Bancassurance
To build on the success of the bancassurance initiative and expand its product range, UBL
entered into an alliance with State Life Insurance Corporation. UBL’s customers now have
convenient access to a broad range of products to suit their needs from EFU Life, Jubilee Life
and State Life Insurance.
Social Media
With a young and increasingly tech-savvy population in Pakistan, social media is an increasingly
important channel for communicating with customers. In 2012, UBL revamped its website and
created a presence on Facebook and Twitter, which are now important components in UBL’s
overall media strategy. These sites are witnessing increasingly regular interaction, providing
customers with constant updates on product offerings and developments whilst also giving
them an opportunity to provide feedback.
Launch of first electronic IPO
In 2012, UBL marked a significant milestone by introducing the first-ever online share
subscription mechanism in Pakistan for the IPO of Aisha Steel Mills. This was a joint initiative of
UBL, the Securities & Exchange Commission of Pakistan, Aisha Steel Mills Limited and Arif Habib
Limited. This was the first electronic IPO (eIPO) offered in Pakistan where customers applied for
U N I T E D B A N K L I M I T E D
shares online via UBL’s internet banking platform through an entirely paperless process. For
this achievement and initiative, UBL received a recognition award at the Pakistan IPO Summit
2012.
Credit Ratings
The credit rating company JCR-VIS re-affirmed the Bank’s long-term entity rating at AA+ and the
ratings of its three subordinated loan instruments at AA. The short term ratings remain at A-1+
which is the highest rating denoting the greatest certainty of timely payments by a financial
institution. All ratings for UBL have been assigned a Stable outlook.
Capital Intelligence (CI), the international credit rating agency, has re-affirmed UBL’s long-term
and short-term Foreign Currency ratings at B- and B respectively in line with CI’s sovereign
ratings. In addition, the Bank’s Financial Strength rating has been re-affirmed at BB+, with the
Outlook reaffirmed at Stable based on the Bank’s strong performance.
Future Outlook
The first half of 2013 will be dominated by the build-up to elections and the related political
uncertainties. The economic situation will remain challenging with a potentially precarious
balance of payments position if foreign exchange reserves continue to fall.
On the budgetary front, the country’s fiscal deficit is again likely to surpass 7% of GDP in FY13,
as the pressure on expenditure due to elections and continuing security issues are unlikely to
be offset by improved tax collections. The deficit will continue to be funded through the
domestic banking system, re-fueling an inflationary cycle and depriving the private sector of
much needed credit. The energy crisis and circular debt remain difficult issues that need to be
tackled with the utmost priority, both through measures to improve efficiency and through
longer term investment, as the energy shortage continues to have an adverse impact on
economic growth and prevent much needed industrial expansion and job creation.
Interest rates have already declined by 250 bps during the first six months of FY13. However,
the minimum guaranteed return for PLS savings deposits remains at the increased level of 6%,
resulting in severe spread compression for the banking sector. With spreads already at 5-year
lows, the acquisition of low-cost deposits remains the key priority. The Bank is confident that its
prudent risk management approach along with the significant growth in its network and
continuous investment in people, technology and products will place it in a good position to
manage the challenging environment ahead.
Awards and Recognitions
UBL received several awards in 2012, which are a testament to its performance, the strength of
its franchise and the innovative solutions offered to its customers:
U N I T E D B A N K L I M I T E D

2012 Bank of the Year in Pakistan Award, awarded by The Banker Magazine, an affiliate
of the Financial Times, UK.

ASIAMONEY Best Domestic Bank Award for 2012

‘Pakistani Deal of the Year’ award from Acquisition International Magazine for the
Khushhali Bank Limited transaction.

GSMA Global Mobile Award 2012 for “Best Use of Mobile in Emergency or Humanitarian
Situations” and Financial Insights Innovation Award for “Innovation in Cash
Disbursements (G2P)” in February 2012.

Best Islamic Deal in Pakistan by The Asset Triple A Islamic Finance Awards 2012 for
Pakistan Mobile Communications Limited – USD 84 million Syndicated Islamic Finance
Facility.

Asia Deal of the Year by Euromoney Air Finance Journal for PIA’s Shariah Compliant
Islamic Facility of USD 100 million. This was the first foreign currency commercially
syndicated financing for a Pakistani corporate since 2007.

“Transaction of the Year” Award by CFA Pakistan Society for successfully executing one
of the largest public offerings in 2011 of Engro Foods (Rs 1,875 million).

Best Credit Card Provider in the Consumers Choice Awards 2011 by The Consumers
Association of Pakistan.
Statement under Clause XVI of the Code of Corporate Governance
The Board of Directors is committed to ensuring that the requirements of corporate
governance set by the Securities and Exchange Commission of Pakistan are fully met. The Bank
has adopted good corporate governance practices and the Directors are pleased to report that:

The financial statements present fairly the state of affairs of the Bank, the result of its
operations, cash flows and changes in equity.

Proper books of account of the Bank have been maintained.

Appropriate accounting policies have been consistently applied in the preparation of the
financial statements, except for the changes in accounting policies as described in note
5.1. Accounting estimates are based on reasonable and prudent judgment.
U N I T E D B A N K L I M I T E D

International Financial Reporting Standards, as applicable to Banks in Pakistan, have
been followed in the preparation of the financial statements without any departure
therefrom.

The system of internal control in the Bank is sound in design, and is effectively
implemented and monitored.

There are no significant doubts regarding the Bank’s ability to continue as a going
concern.

There has been no material departure from the best practices of corporate governance.

Performance highlights for the last six years are attached to these unconsolidated
financial statements.

The Board has appointed the following three Committees with defined terms of
reference
o Board Risk Management Committee (BRMC)
o Board Human Resources & Compensation Committee (HRCC)
o Board Audit Committee (BAC)
The number of Board Committee meetings attended during the year by each Director is
shown below:
Name of Director
Designation & Name of Committee
BRMC
HRCC BAC
Director / Chairman HRCC / Member BRMC
Mr. Omar Z. Al Askari
4
3
Mr. Zameer Mohammed Choudrey Director / Chairman BAC
4
Director / Member BAC
Mr. Amin Uddin
4
Director / Chairman BRMC
Mr. Arshad Ahmad Mir
4
Director / Member HRCC
Mr. Seerat Asghar
4
Director / Member BAC
Mr. Rana Assad Amin*
3
President & CEO / Member HRCC & BRMC
Mr. Atif R. Bokhari
4
4
*Mr. Rana Assad Amin was appointed to the Board in February 2012. Since the BAC is held prior to the
Board meeting, Mr. Rana Assad Amin did not attend the February 2012 BAC.
The Bank operates five post retirement funds including the Provident Fund, Gratuity Fund,
Pension Fund, Benevolent Fund, and General Provident Fund. The value of the investments of
these funds based on their latest audited financial statements as at December 31, 2011 is as
follows:
U N I T E D B A N K L I M I T E D
Amounts in ‘000
Employees’ Provident Fund
2,953,277
Employees’ Gratuity Fund
378,997
Staff Pension Fund
5,469,223
Staff General Provident Fund
1,241,572
Officers / Non-Officers Benevolent Fund
826,167
The Bank also operates two unfunded benefit schemes in the form of Post Retirement Medical
and Compensated Absences.
Meetings of the Board
During the year under review, the Board of Directors met six times. The number of meetings
attended by each director during the year is shown below:
Name of the Director
Designation
Meetings attended
Chairman
03
Deputy Chairman
06
Mr. Omar Z. Al Askari
Director
04
Mr. Zameer Mohammed Choudrey
Director
06
Mr. Rana Assad Amin
Director
06
Mr. Amin Uddin
Director
06
Mr. Arshad Ahmad Mir
Director
06
Mr. Seerat Asghar
Director
06
Mr. Atif R. Bokhari
President & CEO
06
His Highness Sheikh Nahayan Mabarak Al Nahayan
Sir Mohammed Anwar Pervez, OBE, HPk
Change in Directors
Mr. Rana Assad Amin was appointed as a Director by the Government of Pakistan with effect
from 21 February 2012 in place of Mr. Muhammad Sami Saeed. The Board records its
appreciation for Mr. Muhammad Sami Saeed’s valuable contribution and services.
U N I T E D B A N K L I M I T E D
Directors’ Training Program
In compliance of Clause (xi) of the Code of Corporate Governance, Mr. Seerat Asghar, Director,
successfully completed the Corporate Governance Leadership Skills program conducted by The
Pakistan Institute of Corporate Governance. Last year, Mr Amin Uddin, Director, completed the
same program.
Pattern of Shareholding
The pattern of shareholding as required u/s 236 of the Companies Ordinance, 1984 and Clause
(xvi) of the Code of Corporate Governance is given below:
Shareholders
Bestway Group (BG)
Abu Dhabi Group (ADG)
State Bank of Pakistan
Government of Pakistan
Privatization Commission of Pakistan
General Public & Others
NIT
Banks, DFIs & NBFIs
Insurance Companies
Modarabas & Mutual Funds
Securities & Exchange Commission of Pakistan
* International GDRs (non-voting shares)
TOTAL OUTSTANDING SHARES
No. of Shares
625,191,261
67,329,867
238,567,381
3,354,550
1,714
179,993,330
1,192,199
26,083,910
10,029,107
11,288,893
1
61,147,474
1,224,179,687
% of Ordinary
Shares
51.07
5.50
19.49
0.27
0.00
14.70
0.10
2.13
0.82
0.92
0.00
5.00
100.00
* ADG also holds 4.80% additional shares in the form of GDRs.
The aggregate shares/GDRs held by the following are:
No. of
shares/GDRs
a)
Associated Companies, undertakings & related parties
- Bestway (Holdings) Limited
- Bestway Cement Limited
- ADG holding in the form of GDRs*
b) NIT
-National Bank of Pakistan – Trustee Department NI(U)T Fund
Modarabas & Mutual Funds**
c) Public sector companies and corporations
467,611,120
93,649,744
14,708,099
1,192,199
11,288,893
508,362
U N I T E D B A N K L I M I T E D
d) Banks, DFIs, NBFIs, Insurance Companies
e) Directors & CEO
-H.H. Sheikh Nahayan Mabarak Al Nahayan
-Sir Mohammed Anwar Pervez,OBE,HPk
-Zameer Mohammed Choudrey
-Amin Uddin
-Arshad Ahmad Mir
-Atif R. Bokhari, President & CEO
f) -Executives***
36,113,017
67,329,867
62,433,163
1,497,234
2,750
2,500
1,515,029
3,429,533
*Number of GDRs (one GDR represents four ordinary shares).
** Name wise detail of Modarabas & Mutual Funds is annexed with Categories of Shareholders.
*** Figure for Executives includes 5,456 shares held by their spouses and minor children.
Shareholders holding 5% or more voting rights
Bestway (Holdings) Limited
State Bank of Pakistan
Bestway Cement Limited
H.H. Sheikh Nahayan Mabarak Al Nahayan
Sir Mohammed Anwar Pervez, OBE, HPk
No. of shares
467,611,120
238,567,381
93,649,744
67,329,867
62,433,163
%
38.20
19.49
7.65
5.50
5.10
Risk Management Framework
Risk management is carried out under an integrated structure at the Bank. The overall risk
management process of the Bank is supervised by the Board Risk Management Committee
(BRMC), while the day to day functions are executed by the Risk & Credit Policy Group. The
Group is organized into the following six divisions, headed by senior executives:

Credit Policy & Research

Credit Risk Management

Consumer, Seasonal Finance & SME Products

Market and Treasury Risk and FI Risk Management

Operational Risk & Basel II

International Risk
U N I T E D B A N K L I M I T E D
The country’s economic environment in 2012 was not conducive for significant private sector
credit growth, despite interest rates falling to single digits by year end. UBL’s asset portfolio
continued to be closely monitored and the Bank raised the bar in its risk management practices.
The updated and expanded Risk Acceptance Criteria (RAC) served as a key support tool in the
credit disbursement process. Regular publication of reports by the Credit Policy & Research
Division kept key business groups aware of vital economic and sectoral developments
throughout the year.
Credit Policy redesigned the Obligor Risk Rating (ORR) Model to reflect more objective ratings,
with separate models for Corporate, Commercial, SME and Individuals. Domestic and
International industry concentration limits were reviewed and amended to avoid risk
concentration in selected sectors and to direct business units towards a planned acquisition of
assets.
In its Consumer assets portfolio, UBL is now using an application scoring model as well as a
behavioral scoring model to improve and manage asset quality.
Acquisitions are driven
primarily through targeting and selective lending to branch banking customers who have an
existing relationship with the Bank. A revised settlement policy as well as restructuring of the
collection and recovery functions proved to be effective risk management tools for improving
recoveries.
The Capital Adequacy Ratio (CAR) was maintained well above the prescribed regulatory
threshold throughout the year. The CAR calculation process has been optimized through
automation of the reporting to the State Bank of Pakistan under the Basel II Standardized
Approach.
The Bank continued its efforts towards implementing the Operational Risk
Management Framework with an aim to understand the operational risk profile and improve
the overall control environment. Business Continuity Planning and Outsourcing Frameworks
are also in place to appropriately address the relevant risks. The Bank has further strengthened
its stress testing process by including more stringent and varied stress scenarios and testing
their impact on earnings, liquidity and capital adequacy. The results of the stress testing were
presented to senior management committees and the Board Risk Management Committee.
U N I T E D B A N K L I M I T E D
The Market & Treasury Risk function, under the supervision of the Market Risk Committee is
responsible for estimating, monitoring and reporting market risk inherent in on & off balance
sheet exposures of the Bank. They also monitor and proactively seek to improve the effective
implementation of the market risk management policy. Sensitivity and scenario analyses are
routinely employed to assess the potential risk of proposed as well as existing investments.
Building on the initiatives taken last year, focus continues towards developing greater reliance
on quantitative methods, improved limit setting and review mechanism of exposures. Steps
were also taken to establish a mechanism for liquidity risk monitoring in line with guidelines
provided by the SBP and Basel III. The completion of the Sierra Treasury Management System
rollout in 2013 will significantly strengthen the Treasury monitoring function.
Meanwhile, the International Market Risk function continues to work closely with International
Treasury to manage the Market and Treasury risk effectively. For effective liquidity risk
management, they routinely do stress testing, scenario analysis, contingency funding plans and
compute Basel III liquidity ratios.
With an improved environment in countries within the UBL International umbrella, wholesale
banking yielded favorable results while remaining within acceptable risk parameters. The Risk
function also worked closely with the Financial Institutions group, providing country analysis to
support expansion into new non-presence markets and products.
Auditors
The present auditors M/S. BDO Ebrahim & Co., Chartered Accountants, retire and, being
eligible, offer themselves for re-appointment in the forthcoming Annual General Meeting. M/s.
Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants, retire and in pursuance of the
Code of Corporate Governance become ineligible for re-appointment having completed a term
of five years.
The Board of Directors, on the recommendation of the Board Audit Committee, recommends
M/s. BDO Ebrahim & Co., Chartered Accountants, for re-appointment and M/s. KPMG Taseer
Hadi & Co, Chartered Accountants., as auditors of the Bank in place of M/s. Ernst & Young Ford
Rhodes Sidat Hyder, Chartered Accountants.
U N I T E D B A N K L I M I T E D
Conclusion
In conclusion, I extend my thanks and appreciation to UBL shareholders and customers as well
as to my fellow members of the Board of Directors for their trust and support.
We
acknowledge the efforts and dedication demonstrated by our staff and would also like to
express our earnest appreciation to the Government, the State Bank of Pakistan, the Securities
& Exchange Commission and other regulatory bodies for their continued support.
For and on behalf of the Board,
Nahayan Mabarak Al Nahayan
Chairman
Abu Dhabi
February 24, 2013
BOO EBRAHIM a: CO.
CHARTERED ACCOUNTANTS
ERNST ft YOUNG FORD RHODES SlOAT HYDER
CHARTERED ACCOUNTANTS
REVIEW REPORT TO THE MEMBERS ON THE STATEMENT OF COMPLIANCE WITH THE BEST PRACTICES
OF CODE OF CORPORATE GOVERNANCE
We have reviewed the Statement of Compliance with the best practices (the Statement)
contained in the Code of Corporate Governance (the Code) for the year ended
December 31, 2012 prepared by the Board of Directors of UNITED BANK LIMITED (the Bank) to comply with the Listing Regulations of the Karachi Stock Exchange Limited, Lahore Stock Exchange Limited and Islamabad Stock Exchange Limited, where the Bank is listed. I
I
The responsibility for complfance with the Code is that of the Board of Directors of the Bank. Our responsibility is to review, to the extent Where such compliance can be objectively verified, whether the Statement reflects the status of the Bank's compliance with the provisions of the Code and report if it does not. A review is limited primcg-ily to inquiries of the Bank's personnel, and review of various documents prepared by the Bank to comply with the Code. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are not required to consider whether the Board's statement on internal control covers all risks and controls, or to form an opinion on the effectiveness of such internal controls, the Bank's corporate governance procedures and risks. Further, the Listing Regulations require the Bank to place before the Board of Directors for their consideration and approval, related party transactions· distinguishing between transactions carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at arm's length price recording proper justification for using such alternate pricing mechanism. Further, all such transactions are also required to be separately placed before the Audit Committee. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the Board of Directors and placement of such transactions before the Audit Committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Based on our reView, nothing has come to our attention which causes us to believe that the
'Statement90es not appropriately reflect the Bank's compliance, in all material respects,
'with the best practices contained in the Code as applicable to the Bank for the year ended
,,December 31, 2012.
)
j~O\-~~~LBOO EBRAHIM ft CO.
CHARTERED ACCOUNTANTS
'~~
ERNST ft YOUNG FORD RHODES SlOAT HYDER
CHARTERED ACCOUNTANTS
; Audit Engagement Partner:
, Zulfikar Ali Causer
Audit Engagement Partner:
Shabbir Yunus
Date:
Karachi
2 4 FEB 2013
<
U N I T E D
B A N K
L I M I T E D
STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE
YEAR ENDED DECEMBER 31, 2012
This statement is being presented to comply with the Code of Corporate Governance (The Code)
contained in the Listing Regulation No. 35 of the Karachi, Lahore & Islamabad Stock Exchanges for the
purpose of establishing a framework of good governance, whereby a listed company is managed in
compliance with the best practices of corporate governance.
The Bank has applied the principles contained in the Code in the following manner:
1.
The Bank encourages representation of independent non-executive directors and directors
representing minority interests on its board of directors.. At present the board includes:
Category
Names
Independent Directors
Mr. Amin Uddin
Mr. Arshad Ahmad Mir
Executive Director
Mr. Atif R. Bokhari, President & CEO
Non-Executive Directors
His Highness Sheikh Nahayan Mabarak Al Nahayan
Sir Mohammed Anwar Pervez, OBE, HPk
Mr. Omar Z. Al Askari
Mr. Zameer Mohammed Choudrey
Mr. Seerat Asghar
Mr. Rana Assad Amin
The independent directors meets the criteria of independence under clause I (b) of the CCG
2.
The Directors have confirmed that none of them is serving as a Director in more than seven listed
companies, including this Bank.
3.
All the resident directors of the Bank are registered as taxpayers and none of them has defaulted
in payment of any loan to a banking company, a DFI or an NBFI or, being a member of a stock
exchange, has been declared as a defaulter by that stock exchange.
4.
Mr. Rana Assad Amin was appointed as a Director of UBL in place of Mr. Muhammad Sami Saeed
with effect from 21 February 2012 as a GOP nominee.
5.
The Bank has prepared a “Code of Conduct” and has ensured that appropriate steps have been
taken to disseminate it throughout the Bank along with its supporting policies and procedures.
6.
The Board has developed a vision / mission statement, overall corporate strategy and significant
policies of the Bank. A complete record of particulars of significant policies along with the dates
on which they were approved or amended has been maintained.
7.
All the powers of the Board have been duly exercised and decisions on material transactions,
including the appointment and the determination of remuneration and terms and conditions of
employment of the Chief Executive Officer, other executive and non-executive directors, have
been taken by the Board.
8.
The meetings of the Board were presided over by the Chairman and, in his absence, by the
Deputy Chairman. The Board met at least once in every quarter. Written notices of the Board
U N I T E D
B A N K
L I M I T E D
meeting, along with the agenda and working papers, were circulated at least seven days before
the meetings. The minutes of the meetings were appropriately recorded and circulated.
9.
In compliance of Clause (xi) of The Code, Mr. Seerat Asghar Director UBL, have completed the
Corporate Governance Leadership Skills program conducted by Pakistan Institute of Corporate
Governance in February 2012.
10. The appointments of the Chief Financial Officer, the Company Secretary and the Head of Internal
Audit including their remuneration and terms of employment have been approved by the Board.
11. The Directors’ Report for the year has been prepared in compliance with the requirements of the
Code and fully describes the salient matters required to be disclosed.
12. The financial statements of the Bank were duly endorsed by the Chief Executive Officer and the
Chief Financial Officer before approval of the Board.
13. The Directors, Chief Executive Officer and Executives do not hold any interest in the shares of the
Bank other than those disclosed in the pattern of shareholding.
14. The Bank has complied with all corporate and financial reporting requirements of the Code.
15. The Board has formed an audit committee. It comprises of three members, all of whom are nonexecutive Directors.
16. The meetings of the audit committee are held at least once every quarter prior to the approval of
interim and final results of the Bank and as required by the Code. The terms of reference of the
committee have been formulated and advised to the committee for compliance.
17. The Board has also constituted a Human Resource and Compensation Committee comprising of
two non-executives and one executive Director. The Chairman of the Committee is a nonexecutive Director.
18. The Board has set up an effective internal audit function. Personnel of the Internal Audit
Department are suitably qualified and experienced for the purpose and are conversant with the
policies and procedures of the Bank.
19. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating
under the Quality Control Review Program of The Institute of Chartered Accountants of Pakistan,
that they or any of the partners of the firm, their spouses and minor children do not hold shares
of the Bank and that the firm and all its partners are in compliance with International Federation
of Accountants (IFAC) guidelines on Code of Ethics as adopted by the Institute of Chartered
Accountants of Pakistan.
20. The statutory auditors or the persons associated with them have not been appointed to provide
other services except in accordance with the listing regulations and the auditors confirmed that
they have observed IFAC guidelines in this regard.
21. The ‘Closed Period’, prior to the announcement of interim/final results, and business decisions,
which may materially affect the market price of company’s securities, was determined and
intimated to directors, employees and stock exchanges.
U N I T E D
B A N K
L I M I T E D
22. Material/price sensitive information has been disseminated among all market participants at
once through stock exchanges.
23. We confirm that all other material principles enshrined in the CCG have been complied with.
For and on behalf of the Board of Directors
NAHAYAN MABARAK AL NAHAYAN
Chairman
Abu Dhabi
Date: February 24, 2013
ERNST ft YOUNG FORD RHODES SlOAT HYDER
CHARTERED ACCOUNTANTS
BOO EBRAHIM ft CO. CHARTERED ACCOUNTANTS AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed unconsolidated statement of financial position of UNITED BANK LIMITED
(the Bank) as at December 31, 2012 and, the related unconsolidated profit and loss account,
unconsolidated statement of comprehensive income, unconsolidated cash flow statement, and
unconsolidated statement of changes in equity, together with the notes forming part thereof (here-in­
after referred to as the 'financial statements') for the year then ended, in which are incorporated the
unaudited certified returns from the branches except for forty branches which have been'audited by us
and fourteen branches audited by auditors abroad and we state that we have obtained all the
information and explanations which, to the best of our knowledge and belief, were necessary for the
purposes of our audit.
It is the responsibility of the Bank's Board of Directors to establish and maintain cl system of internal
control, and prepare and present the finaricial statements in conformity with approved accounting
standards and the requirements, of the Banking Companies Ordinance, 1962 (LVII of 1962), and the
Companies Ordinance, 1984 (XLVII of 1984).: Our responsibility is to express an opinion on these
statements based on our audit.
We conducted our audit in accordance with the Intern~tional Standards on Auditing as applicable in
Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of any material misstatement. An audit includes
examining, on a test basis, evidence support1ng the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting policies and significant estimates made by management,
as well as, evaluating the overall presentation of the financial statements. We believe that our audit
provides a reasonable basis for our opinion· and after due verification, which in case of loans and
advances covered more than sixty percent of the total loans and advances of the Bank, we report that:
(a) in our opinion proper books of account have been kept by the Bank as required by the
Companies Ordinance, 1984 (XLVII of 1984), and the returns referred to above received from
the branches have been found adequate for the purposes of our audit;
(b) in our opinion:
(i) the unconsolidated statement of financial position and unconsolidated profit and loss
account together with the notes thereon have been drawn up in conformity with the
Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984
(XLVII of 1984), and are in agreement with the books of account and are further in
accordance with accounting policies consistently applied except for the change in
accounting policy as stated in note 5.1 to the accompanying financial statements, with
which we concur;
(11 )
the expenditure incurred during the year was for the purpose of the Bank's business;
and
(iii) the business conducted, investments made and the expenditure incurred during the year
were in accordance with the objects of the Bank and the transactions of the Bank which
have come to our notice have been within the powers of the Bank;
Page - 1
(c) in our opinion and to the best of our information and according to the explanations given to us
the unconsolidated statement of financial position, unconsolidated profit and loss account,
unconsolidated statement of comprehensive income, unconsolidated cash flow statement and
unconsolidated statement of changes in equity, together with the notes forming part thereof
conform with approved accounting standards as applicable in Pakistan and give the information
required by the Banking Compani.es Ordinance, 1962 (LVII of 1962), and the Companies
Ordinance, 1984 (XLVII of 1984), in the manner so required and give a true and fair view of the
state of the Bank's affairs as at December 31, 2012 and its true balance of the profit, its
comprehensive income, its cash flows and changes in equity for the year then ended; and
(d) in our opinion zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of
1980), was deducted by the Bank and deposited in the Central Zakat Fund established under
Section 7 of that Ordinance.
ERNST 8: YOUNG FORD RHODES SlOAT HYDER
CHARTERED ACCOUNTANTS
BOO EBRAHIM 8: CO.
CHARTERED ACCOUNTANTS
~.
~
Audit Engagement Partner:
Zu lfikar Ali Causer
Date:
Audit Engagement Partner:
Shabbir Yunus
2 4 FEB 2013
Karachi
j
/
·f
Page - 2
\)
UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2012
Note
2012
2011
------- (Rupees in '000) -------
ASSETS
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Performing
Non-performing - net of provision
6
7
8
9
94,081,133
15,234,326
21,953,458
349,590,182
86,216,168
14,385,823
11,890,082
294,410,661
10
10
Operating fixed assets
Deferred tax asset - net
Other assets
11
12
13
350,500,822
13,862,980
364,363,802
24,431,069
24,744,682
894,398,652
314,187,793
11,159,415
325,347,208
22,981,878
1,991,185
20,836,736
778,059,741
7,600,633
67,214,445
699,935,518
9,319,264
277,970
18,886,996
803,234,826
91,163,826
5,879,043
49,953,251
612,980,139
11,317,080
18,777,320
698,906,833
79,152,908
12,241,798
29,044,219
36,341,135
77,627,152
13,536,674
91,163,826
12,241,798
24,847,019
33,534,116
70,622,933
8,529,975
79,152,908
LIABILITIES
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Liabilities against assets subject to finance lease
Deferred tax liability - net
Other liabilities
15
16
17
18
12
19
NET ASSETS
REPRESENTED BY:
Share capital
Reserves
Unappropriated profit
20
Surplus on revaluation of assets - net of deferred tax
21
CONTINGENCIES AND COMMITMENTS
22
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
President and
Chief Executive Officer
Rana Assad Amin
Director
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Nahayan Mabarak Al Nahayan
Chairman
UNCONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2012
Note
Mark-up / return / interest earned
Mark-up / return / interest expensed
Net mark-up / interest income
Provision against loans and advances - net
Provision against lendings to financial institutions - net
Provision for diminution in value of investments - net
Bad debts written off directly
24
25
73,507,415
34,947,698
38,559,717
70,450,897
31,025,869
39,425,028
10.4
8.4
9.3
10.5
3,245,268
168,492
438,149
284,991
4,136,900
34,422,817
6,194,973
345,858
410,085
340,416
7,291,332
32,133,696
8,162,535
2,664,242
1,862,585
464,386
6,949,191
786,496
2,078,260
518,710
9.4
27
2,236
3,975,234
17,131,218
51,554,035
(43,750)
2,429,346
12,718,253
44,851,949
28
29
30
31
23,528,112
361,928
531,106
103,962
24,525,108
27,028,927
19,784,894
226,204
513,121
104,939
20,629,158
24,222,791
32
32
32
8,947,398
497,000
(422,199)
9,022,199
18,006,728
8,946,039
679,290
(902,201)
8,723,128
15,499,663
Net mark-up / return / interest income after provisions
Non mark-up / interest income
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Unrealized gain / (loss) on revaluation of investments classified as
held for trading
Other income
Total non mark-up / interest income
Non mark-up / interest expenses
Administrative expenses
Other provisions - net
Workers' Welfare Fund
Other charges
Total non mark-up / interest expenses
Profit before taxation
Taxation - Current
Taxation - Prior years
Taxation - Deferred
2012
2011
------- (Rupees in '000) -------
26
Profit after taxation
----------- (Rupees) ----------Earnings per share - basic and diluted
33
14.71
12.66
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
President and
Chief Executive Officer
Rana Assad Amin
Director
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Nahayan Mabarak Al Nahayan
Chairman
UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2012
2012
2011
------- (Rupees in '000) ------Profit after taxation
Other comprehensive income:
Exchange differences on translation of net investment in foreign branches
Gain on cash flow hedges
Related deferred tax liability on cash flow hedges
Comprehensive income transferred to equity - net of tax
18,006,728
15,499,663
2,355,526
1,541,259
63,078
(22,077)
41,001
2,396,527
20,403,255
103,319
(36,162)
67,157
1,608,416
17,108,079
The surplus arising on revaluation of assets has been reported in accordance with the requirements of the Companies
Ordinance, 1984 and the directives of the State Bank of Pakistan in a separate account below equity.
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
Rana Assad Amin
President and
Director
Chief Executive Officer
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Nahayan Mabarak Al Nahayan
Chairman
UNCONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2012
Note
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation
Less: Dividend income
2012
2011
------- (Rupees in '000) ------27,028,927
2,664,242
24,364,685
24,222,791
786,496
23,436,295
1,506,194
405,878
531,106
629,431
3,245,268
168,492
438,149
(1,753,199)
249
(24,879)
284,991
63,078
(2,236)
190,619
5,683,141
30,047,826
1,234,055
300,667
513,121
422,027
6,194,973
345,858
410,085
(350,995)
4,144
(39,679)
340,416
103,319
43,750
89,935
9,611,676
33,047,971
(10,231,868)
(3,774,334)
(42,546,853)
(1,473,415)
(58,026,470)
(301,162)
15,167,282
1,849,575
(1,716,492)
14,999,203
Staff retirement benefits paid
Income taxes paid
Net cash inflow from operating activities
1,721,590
17,261,194
86,955,379
(723,869)
105,214,294
77,235,650
(233,436)
(12,270,353)
64,731,861
833,228
4,848,402
62,334,372
(591,477)
67,424,525
115,471,699
(223,725)
(9,030,163)
106,217,811
CASH FLOW FROM INVESTING ACTIVITIES
Net investment in securities
Dividend income received
Investment in operating fixed assets
Sale proceeds from disposal of operating fixed assets
Net cash outflow from investing activities
(42,282,964)
2,708,558
(3,433,626)
97,907
(42,910,125)
(84,544,558)
737,762
(2,165,297)
112,861
(85,859,232)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES
Repayments of subordinated loans
Dividends paid
Net cash outflow from financing activities
Exchange differences on translation of net investment in foreign branches
Increase in cash and cash equivalents
(1,997,816)
(13,465,978)
(15,463,794)
2,355,526
8,713,468
(668,668)
(6,732,989)
(7,401,657)
1,541,259
14,498,181
Cash and cash equivalents at the beginning of the year
100,601,991
86,103,810
109,315,459
100,601,991
Adjustments:
Depreciation
Amortization
Workers' Welfare Fund
Provision for retirement benefits
Provision against loans and advances - net
Provision against lendings to financial institutions - net
Provision for diminution in value of investments - net
Reversal of provision in respect of investments disposed off during the year
Provision against off balance sheet items
Gain on sale of fixed assets
Bad debts written-off directly
Amortization of cash flow hedges
Unrealized (gain) / loss on revaluation of investments classified as held for trading
Provision against other assets
Decrease / (increase) in operating assets
Lendings to financial institutions
Held for trading securities
Advances
Other assets (excluding advance taxation)
(Decrease) / increase in operating liabilities
Bills payable
Borrowings
Deposits and other accounts
Other liabilities (excluding current taxation)
Cash and cash equivalents at the end of the year
34
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
President and
Chief Executive Officer
Rana Assad Amin
Director
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Nahayan Mabarak Al Nahayan
Chairman
UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2012
Share capital
Statutory
reserve
Capital reserves
Exchange
Cash flow
translation
hedge reserve
reserve
Unappropriated profit
Total
---------------------------------------------------- (Rupees in '000) ---------------------------------------------------Balance as at January 1, 2011
12,241,798
14,446,898
7,370,891
(129,152)
26,250,489
60,180,924
Transactions with owners recorded directly in equity
for the year ended December 31, 2011
Final cash dividend - December 31, 2010 declared
subsequent to the year end at Rs.4.0 per share
-
-
-
-
(4,896,719)
(4,896,719)
-
-
-
-
(1,836,270)
(6,732,989)
(1,836,270)
(6,732,989)
Profit after taxation for the year ended December 31, 2011
Other comprehensive income - net of tax
Total comprehensive income for the year ended December 31, 2011
-
-
67,157
67,157
15,499,663
15,499,663
15,499,663
1,608,416
17,108,079
Transfer from surplus on revaluation of fixed assets
to unappropriated profit - net of tax
-
-
66,919
66,919
Transfer to statutory reserve
-
Interim cash dividend - June 30, 2011 declared
at Rs.1.5 per share
Total comprehensive income for the year ended
December 31, 2011
Balance as at December 31, 2011
12,241,798
1,541,259
1,541,259
1,549,966
15,996,864
-
-
-
-
(1,549,966)
(61,995)
33,534,116
70,622,933
8,912,150
-
Transactions with owners recorded directly in equity
for the year ended December 31, 2012
Final cash dividend - December 31, 2011 declared
subsequent to the year end at Rs.6.0 per share
-
-
-
-
(7,345,078)
(7,345,078)
Interim cash dividend - March 31, 2012 declared
at Re.1.0 per share
-
-
-
-
(1,224,180)
(1,224,180)
Interim cash dividend - June 30, 2012 declared
at Rs.2.0 per share
-
-
-
-
(2,448,360)
(2,448,360)
-
-
-
-
(2,448,360)
(13,465,978)
(2,448,360)
(13,465,978)
Profit after taxation for the year ended December 31, 2012
Other comprehensive income - net of tax
Total comprehensive income for the year ended December 31, 2012
-
-
41,001
41,001
18,006,728
18,006,728
18,006,728
2,396,527
20,403,255
Transfer from surplus on revaluation of fixed assets
to unappropriated profit - net of tax
-
-
66,942
66,942
Transfer to statutory reserve
-
Interim cash dividend - September 30, 2012 declared
at Rs.2.0 per share
Total comprehensive income for the year ended
December 31, 2012
Balance as at December 31, 2012
12,241,798
2,355,526
2,355,526
1,800,673
17,797,537
-
-
-
-
(1,800,673)
(20,994)
36,341,135
11,267,676
77,627,152
Appropriations made by the Board of Directors subsequent to the year ended December 31, 2012 are disclosed in note 46 to these unconsolidated financial statements.
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
President and
Chief Executive Officer
Rana Assad Amin
Director
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
Nahayan Mabarak Al Nahayan
Chairman
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
1.
STATUS AND NATURE OF BUSINESS
United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking
and related services. The Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue
Area, Islamabad and at State Life Building No. 1, I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,278
(2011: 1,218) branches inside Pakistan including 19 (2011: 14) Islamic Banking branches and 1 (2011: 1) branch in
Karachi Export Processing Zone. The Bank also operates 18 (2011: 17) branches outside Pakistan as at December 31,
2012.
The Bank's Ordinary shares are listed on all three stock exchanges in Pakistan. Its Global Depository Receipts (GDRs)
are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs
are also eligible for trading on the International Order Book System of the London Stock Exchange. Further, the GDRs
constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the US
Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
2.
BASIS OF PRESENTATION
2.1
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic
modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of traderelated modes of financing include purchase of goods by banks from their customers and immediate resale to them at
appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements are
not reflected in these unconsolidated financial statements as such, but are restricted to the amount of facility actually
utilized and the appropriate portion of mark-up thereon. The Islamic Banking branches of the Bank have complied with
the requirements set out under the Islamic Financial Accounting Standards issued by the Institute of Chartered
Accountants of Pakistan and notified under the provisions of the Companies Ordinance, 1984.
2.2
The financial results of the Islamic Banking branches of the Bank have been included in these unconsolidated financial
statements for reporting purposes, after eliminating material inter-branch transactions / balances. Key financial figures of
the Islamic Banking branches are disclosed in note 45 to these unconsolidated financial statements.
3.
STATEMENT OF COMPLIANCE
3.1
These unconsolidated financial statements have been prepared in accordance with approved accounting standards as
applicable in Pakistan, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962
and the directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP. Approved
accounting standards comprise of International Financial Reporting Standards (IFRS) and interpretations issued by the
International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the Institute of
Chartered Accountants of Pakistan. Wherever the requirements of the Companies Ordinance, 1984, the Banking
Companies Ordinance, 1962 or the directives issued by the SECP and the SBP differ with the requirements of IFRS or
IFAS, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the said
directives prevail.
3.2
The SBP, vide BSD Circular letter No. 10, dated August 26, 2002 has deferred the applicability of International
Accounting Standard 39, Financial Instruments: Recognition and Measurement and International Accounting Standard
40, Investment Property for banking companies till further instructions. Further, according to the notification of the SECP
issued vide SRO 411(I)/2008 dated April 28, 2008, IFRS 7, Financial Instruments: Disclosures has not been made
applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of
these unconsolidated financial statements. However, investments have been classified and valued in accordance with
the requirements of various circulars issued by the SBP.
3.3
These unconsolidated financial statements represent the separate financial statements of the Bank. The consolidated
financial statements of the Bank and its subsidiary companies are presented separately.
3.4
Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following revised standards, amendments and interpretations with respect to the approved accounting standards as
applicable in Pakistan would be effective from the dates mentioned below against the respective standard or
interpretation:
1
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Effective date (annual
periods beginning on or
after)
Standard or Interpretation
IAS 1 - Presentation of Financial Statements - Presentation of Items of Other
Comprehensive Income
July 01, 2012
IAS 19 - Employee Benefits (Revised)
January 01, 2013
IAS 32 - Offsetting Financial Assets and Financial Liabilities - (Amendment)
January 01, 2014
The Bank expects that the adoption of the above revisions, amendments and interpretations of the standards will not
affect the Bank's financial statements in the period of initial application other than the revision to IAS 19 ‘Employee
Benefits’ as described below:
The significant changes to IAS 19 are as follows:
-
For defined benefit plans, the option to defer recognition of actuarial gains and losses (i.e., the corridor approach)
has been removed. As revised, actuarial gains and losses are recognized in other comprehensive income when
they occur. Amounts recorded in the profit and loss account are limited to current and past service costs, gains or
losses on settlements, and net interest income (expense). All other changes in the net defined benefit obligation are
recognized directly in other comprehensive income with no subsequent recycling through the profit and loss
account.
-
The distinction between short-term and long-term employee benefits will be based on the expected timing of
settlement rather than the employee’s entitlement to the benefits.
-
The revised standard has new or revised disclosure requirements. The disclosures now include quantitative
information regarding the sensitivity of the defined benefit obligation to a reasonably possible change in each
significant actuarial assumption.
The Bank is currently assessing the full impact of the above amendments to IAS 19 on its unconsolidated financial
statements. It is expected that the adoption of the said amendments, which are effective only from January 1, 2013, will
result in a change in the Bank's accounting policy related to recognition of actuarial gains and losses (note 5.10.3) and in
the recognition of cumulative unrecognized actuarial gain amounting to Rs.1,500.005 million in other comprehensive
income in the period of initial application.
In addition to the above amendments, improvements to various accounting standards have also been issued by the
IASB. Such improvements are generally effective for accounting periods beginning on or after January 01, 2013. The
Bank expects that such improvements to the standards will not have any material impact on the Company's financial
statements in the period of initial application.
The following new standards have been issued by the IASB, but have not yet been notified by the SECP for application in
Pakistan.
IASB Effective date
(annual periods
beginning
on or after)
Standard or Interpretation
IFRS 9 – Financial Instruments: Classification and Measurement
January 01, 2015
IFRS 10 – Consolidated Financial Statements
January 01, 2013
IFRS 11 – Joint Arrangements
January 01, 2013
IFRS 12 – Disclosure of Interests in Other Entities
January 01, 2013
IFRS 13 – Fair Value Measurement
January 01, 2013
2
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
4.
BASIS OF MEASUREMENT
4.1
Accounting convention
These unconsolidated financial statements have been prepared under the historical cost convention except that certain
operating fixed assets have been stated at revalued amounts and certain investments and derivative financial
instruments have been stated at fair value.
4.2
Critical accounting estimates and judgments
The preparation of these unconsolidated financial statements in conformity with approved accounting standards requires
management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities
and income and expenses. It also requires management to exercise judgment in the application of its accounting
policies. The estimates and assumptions are based on historical experience and various other factors that are believed
to be reasonable under the circumstances. These estimates and assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only
that period, or in the period of revision and future periods if the revision affects both current and future periods.
Significant accounting estimates and areas where judgments were made by management in the application of
accounting policies are as follows:
i)
ii)
classification of investments (notes 5.4 and 9)
provision against investments (notes 5.4 and 9.3), lendings to financial institutions (note 8.4) and
advances (notes 5.5 and 10.4)
iii) income taxes (notes 5.8 and 32)
iv) staff retirement benefits (notes 5.10 and 36)
v) fair value of derivatives (notes 5.15.2 and 19.3)
vi) operating fixed assets, depreciation and amortization (notes 5.6 and 11)
vii) impairment (note 5.7)
5.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1
Significant accounting policies
The Bank has adopted the following amended accounting standard which became effective during the year. Other than
this, the accounting policies adopted in the preparation of these unconsolidated financial statements are consistent with
those of the previous financial year.
IAS 12 - Income taxes (Amendment) - Recovery of underlying assets
The adoption of the above amended standard did not have a material effect on these unconsolidated financial
statements.
5.2
Cash and cash equivalents
Cash and cash equivalents for the purpose of the cash flow statement represent cash and balances with treasury banks
and balances with other banks.
5.3
Lendings to / borrowings from financial institutions
The Bank enters into transactions of reverse repos and repos at contracted rates for a specified period of time. These
are recorded as under:
5.3.1
Purchase under resale agreements
Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions. The
differential between the purchase price and the resale price is amortized over the period of the agreement and recorded
as income.
Securities held as collateral are not recognized in the unconsolidated financial statements, unless these are sold to third
parties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from
financial institutions.
3
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
5.3.2
Sale under repurchase agreements
Securities sold subject to a re-purchase agreement (repo) are retained in the unconsolidated financial statements as
investments and the counterparty liability is included in borrowings from financial institutions. The differential between the
sale price and the repurchase price is accrued over the period of the agreement and recorded as an expense.
5.4
Investments
Investments of the Bank, other than investments in subsidiaries and associates, are classified as held for trading, held to
maturity and available for sale.
Held for trading
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices,
interest rate movements and dealer's margin, or are securities included in a portfolio in which a pattern of short term
profit taking exists.
Held to maturity
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the
positive intent and ability to hold to maturity.
Available for sale
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or held
to maturity categories.
Initial measurement
All “regular way” purchases and sales of investments are recognized on the trade date, i.e., the date that the Bank
commits to purchase or sell the investment. Regular way purchases or sales are purchases or sales of investments that
require delivery of investments within the time frame generally established by regulation or convention in the market
place.
Investments are initially recognized at fair value which, in the case of investments other than held for trading, includes
transaction costs associated with the investments.
Subsequent measurement
Held for trading
These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included in
the profit and loss account.
Held to maturity
These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized to
reflect irrecoverable amounts.
Available for sale
Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value.
Any surplus / deficit arising thereon is kept in a separate account shown in the statement of financial position below
equity and is taken to the profit and loss account when actually realized upon disposal or when the investment is
considered to be impaired.
Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities is
calculated with reference to the net assets of the investee company as per the latest available audited financial
statements. A decline in the carrying value is charged to the profit and loss account. A subsequent increase in the
carrying value, upto the cost of the investment, is credited to profit and loss account. Investments in other unquoted
securities are valued at cost less impairment, if any.
4
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Provision for diminution in the value of securities (except term finance certificates) is made for impairment, if any.
Provision for diminution in the value of term finance certificates is made as per the ageing criteria prescribed by the
Prudential Regulations issued by the SBP.
Investments in Subsidiaries and Associates
Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment loss
on subsidiaries and associates is recognized as it arises provided the increased carrying value does not exceed cost.
Gains and losses on disposal of investments in subsidiaries and associates is included in the profit and loss account.
5.5
Advances
Advances are stated net of specific and general provisions which are charged to the profit and loss account. Specific
provision against domestic advances and general provision against domestic consumer loans are determined on the
basis of the Prudential Regulations and other directives issued by the SBP. General and specific provisions pertaining to
overseas advances are made in accordance with the requirements of the monetary agencies and the regulatory
authorities of the respective countries. If circumstances warrant, the Bank, from time to time, makes general provision
against weaknesses in its portfolio on the basis of management's estimation. Advances are written off when there is no
realistic prospect of recovery. The amount so written off is a book entry without prejudice to the Bank's right of recovery
against the customer.
The Bank determines write-offs in accordance with the criteria prescribed by the SBP vide BPRD Circular No. 06 dated
June 05, 2007.
5.6
Operating fixed assets and depreciation
5.6.1
Owned
Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost or
revalued amount less accumulated depreciation and accumulated impairment losses (if any). Land is carried at revalued
amount less impairment losses while capital work-in-progress is stated at cost less impairment losses. The cost and the
accumulated depreciation of property and equipment of foreign branches include exchange differences arising on
currency translation at the year-end rates of exchange.
Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at the
rates specified in note 11.2 to these unconsolidated financial statements. The depreciation charge for the year is
calculated on a straight line basis after taking into account the residual value, if any. The residual values and useful lives
are reviewed and adjusted, if appropriate, at each statement of financial position date.
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the
month of disposal.
Land and buildings are revalued by professionally qualified valuers with sufficient regularity to ensure that their net
carrying value does not differ materially from their fair value. A surplus arising on revaluation is credited to the surplus on
revaluation of fixed assets account. Any deficit arising on subsequent revaluation of fixed assets is adjusted against the
balance in the above-mentioned surplus account as allowed under the provisions of the Companies Ordinance, 1984.
The surplus on revaluation of fixed assets, to the extent of incremental depreciation, is transferred to unappropriated
profit.
Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus on
revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profit.
Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. Normal repairs and
maintenance are charged to the profit and loss account as and when incurred.
5.6.2
Leased (Ijarah)
Assets leased out under Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Assets under Ijarah are depreciated over the term of the lease.
Ijarah income is recognized on an accrual basis as and when the rental becomes due.
5
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
5.6.3
Intangible assets
Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. The cost
and the accumulated amortization of intangible assets of foreign branches include exchange differences arising on
currency translation at the year-end rates of exchange. Amortization is calculated so as to write off the amortizable
amount of the assets over their expected useful lives at the rates specified in note 11.3 to these unconsolidated financial
statements. The amortization charge for the year is calculated on a straight line basis after taking into account the
residual value, if any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each statement of
financial position date. Amortization on additions is charged from the month the asset is available for use.
5.7
Impairment
Impairment in available for sale equity investments
Available for sale equity investments are impaired when there has been a significant or prolonged decline in the fair value
below their cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the
Bank evaluates, among other factors, the normal volatility in share price.
Impairment in investments in associates and subsidiaries
The Bank considers that a decline in the recoverable value of the investment in associates and subsidiaries below their
cost may be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and
value in use. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged
to the profit and loss account. A subsequent reversal of an impairment loss, upto the cost of the investment in associates
and subsidiaries, is credited to the profit and loss account.
Impairment in non-financial assets (excluding deferred tax)
The carrying amounts of non-financial assets are reviewed at each reporting date for impairment whenever events or
changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. If such indication
exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their
recoverable amount. The resulting impairment loss is charged to the profit and loss account except for an impairment
loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss
does not exceed the revaluation surplus.
5.8
Taxation
5.8.1
Current
Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws
for taxation on income earned from local as well as foreign operations. The charge for current tax is calculated using
prevailing tax rates.
5.8.2
Prior years
The charge for prior years consists of adjustments relating to prior years, arising from assessments made during the
current year.
5.8.3
Deferred
Deferred tax is recognized using the liability method on all major temporary differences between the amounts attributed
to assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is
calculated at the rates that are expected to apply to the period when the differences are expected to reverse, based on
tax rates that have been enacted or substantively enacted at the statement of financial position date.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilized.
6
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
The carrying amount of the deferred tax asset is reviewed at each statement of financial position date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax
asset to be utilized.
The Bank also recognizes a deferred tax asset / liability on the cash flow hedge reserve and on the deficit / surplus on
revaluation of fixed assets and securities which is adjusted against the related deficit / surplus in accordance with the
requirements of the IAS 12, Income Taxes.
5.9
Provisions
Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events which makes it
probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be
made.
Provision against identified non-funded losses is recognized when intimated and reasonable certainty exists for the Bank
to settle the obligation. The provision is charged to the profit and loss account net of expected recovery and the provision
is classified under other liabilities.
Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate.
5.10
Staff retirement and other benefits
5.10.1 Staff retirement benefit schemes
The Bank operates the following staff retirement schemes for its employees
a)
For new employees and for those who opted for the new scheme introduced in 1991, the Bank operates
- an approved contributory provident fund (defined contribution scheme); and
- an approved gratuity scheme (defined benefit scheme).
b)
For employees who have not opted for the new scheme introduced in 1991, the Bank operates
- an approved non-contributory provident fund in lieu of the contributory provident fund; and
- an approved funded pension scheme, introduced in 1986 (defined benefit scheme).
In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option
(b) above to move to option (a). This conversion option ceased on December 31, 2003.
The Bank also operates a contributory benevolent fund for all its eligible employees (defined benefit scheme).
Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected Unit
Credit Method.
For defined contribution schemes, the Bank pays contributions to the fund on a periodic basis. The Bank has no further
payment obligation once the contributions have been paid. The contributions are recognized as an expense when they
are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction of the future
payments is available.
5.10.2 Other benefits
a)
Employees' compensated absences
The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible
employees on the basis of actuarial advice under the Projected Unit Credit Method.
b)
Post retirement medical benefits (defined benefit scheme)
The Bank provides post retirement medical benefits to eligible retired employees. Provision is made annually to
meet the cost of such medical benefits on the basis of actuarial advice under the Projected Unit Credit Method.
7
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
c)
Employee motivation and retention scheme
The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of
the scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates.
5.10.3 Actuarial gains and losses
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are accounted for
using a "corridor" which is the greater of 10% of the value of the plan assets or 10% of the defined benefit obligation at
the end of the last reporting year. These limits are calculated and applied separately for each defined benefit plan.
Actuarial gains and losses in excess of the "corridor" are credited or charged to the profit and loss account over the
employees' expected average remaining working lives.
Actuarial gains and losses pertaining to long term compensated absences are recognized in the profit and loss account
immediately.
5.11
Subordinated loans
Subordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on subordinated loans is
recognised separately as part of other liabilities and is charged to the profit and loss account over the period on an
accrual basis.
5.12
5.13
Borrowings / deposits
a)
Borrowings / deposits are recorded at the proceeds received.
b)
The cost of borrowings / deposits is recognized as an expense in the period in which this is incurred.
Revenue recognition
Revenue is recognized to the extent that the economic benefits associated with a transaction will flow to the Bank and
the revenue can be reliably measured. The following recognition criteria must be met before revenue is recognized:
5.13.1 Advances and investments
Mark-up / return / interest on performing advances and investments is recognized on a time proportionate basis over the
term of the advances and investments. Where debt securities are purchased at a premium or discount, such premium /
discount is amortized through the profit and loss account over the remaining period of maturity.
Interest or mark-up recoverable on non-performing or classified advances and investments is recognized on a receipt
basis. Interest / return / mark-up on rescheduled / restructured advances and investments is recognized when received
or as required by overseas regulatory authorities of the countries where the branches operate, except where, in the
opinion of the management, it would not be prudent to do so.
5.13.2 Dividend income
Dividend income is recognised when the right to receive the dividend is established.
5.13.3 Fee, brokerage and commission
Fee, brokerage, commission and other income is recognized on an accrual basis.
5.13.4 Grants
Grants received are recorded as income when the related expenditure is incurred.
5.14
Foreign currencies
5.14.1 Functional and presentation currency
Items included in these unconsolidated financial statements are measured using the currency of the primary economic
environment in which the Bank operates. These unconsolidated financial statements are presented in Pakistani Rupees,
which is the Bank's functional and presentation currency.
8
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
5.14.2 Foreign currency transactions
Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction
date. Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange
prevailing at the statement of financial position date. Forward foreign exchange contracts and foreign bills purchased are
valued at forward rates applicable to their respective maturities.
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange
prevailing at the date of initial recognition of the non-monetary assets / liabilities.
5.14.3 Foreign operations
The assets and liabilities of foreign operations are translated to rupees at exchange rates prevailing at the statement of
financial position date. The results of foreign operations are translated at the average rate of exchange for the year.
5.14.4 Translation gains and losses
Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net
investment in foreign branches which are taken to capital reserves (Exchange Translation Reserve) until the disposal of
the net investment, at which time these are recognised in the profit and loss account.
5.14.5 Contingencies and commitments
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial
statements at contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed in
rupee terms at the rates of exchange prevailing at the statement of financial position date.
5.15
Financial instruments
5.15.1 Financial assets and liabilities
Financial assets and liabilities carried on the statement of financial position include cash and bank balances, lendings to
financial institutions, investments, advances, certain receivables, bills payable, borrowings from financial institutions,
deposits, subordinated loans and certain other payables. The particular recognition methods adopted for significant
financial assets and financial liabilities are disclosed in the individual policy notes associated with them.
5.15.2 Derivative financial instruments
Derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is
entered into and are subsequently re-measured at fair value using appropriate valuation techniques. All derivative
financial instruments are carried as assets when their fair value is positive and liabilities when their fair value is negative.
Any change in the fair value of derivative financial instruments is taken to the profit and loss account.
5.15.3 Hedge accounting
The Bank makes use of derivative instruments to manage exposures to interest rate, foreign currency and credit risks. In
order to manage particular risks, the Bank may undertake a hedge. The Bank applies hedge accounting for transactions
which meet the specified criteria.
At the inception of the hedging relationship, the Bank formally documents the relationship between the hedged item and
the hedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge and the
method that will be used to assess the effectiveness of the hedging relationship. A formal assessment is also undertaken
to ascertain whether the hedging instrument is expected to be highly effective in offsetting the designated risk in the
hedged item. A hedge is regarded as highly effective if changes in the fair value or cash flows attributable to the hedged
risk during the period for which the hedge is designated are expected to be offset by between 80% to 125% by
corresponding changes in the fair value or cash flows attributable to the hedging instrument.
Cash flow hedges
For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is
recognised initially in the statement of changes in equity, and recycled to the profit and loss account in the periods when
the hedged item will affect profit or loss. Any gain or loss on the ineffective portion of the hedging instrument is
recognised in the profit and loss account immediately.
9
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is
ultimately recognised in the profit and loss account.
5.15.4 Off setting
Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated financial
statements when there is a legally enforceable right to set off and the Bank intends to either settle on a net basis, or to
realize the assets and to settle the liabilities simultaneously.
5.16
Segment reporting
A segment is a distinguishable component of the Bank that is engaged either in providing particular products or services
(business segment), or in providing products or services within a particular economic environment (geographical
segment), which is subject to risks and rewards that are different from those of other segments.
5.16.1 Business segments
(a) Corporate finance
Corporate finance includes services provided in connection with mergers and acquisitions, project finance and the
underwriting / arrangement of debt and equity instruments through syndications, Initial Public Offerings and private
placements.
(b) Trading and sales
Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities, lending
and borrowings and derivatives for hedging and market making.
(c) Retail banking
Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless banking.
(d) Commercial banking
Commercial banking includes project finance, working capital finance, trade finance, import and export, factoring,
leasing, lending, deposits and guarantees.
(e) Others
Others includes functions which cannot be classified in any of the above segments.
5.16.2 Geographical segments
The Bank operates in four geographical regions being:
5.17
Pakistan
Karachi Export Processing Zone
United States of America
Middle East
Dividends and appropriations to reserves
Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations
required by law which are recorded in the period to which they pertain.
5.18
Earnings per share
The Bank presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during
the year.
10
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
6.
2012
2011
------- (Rupees in '000) -------
CASH AND BALANCES WITH TREASURY BANKS
In hand
Local currency
Foreign currency
With State Bank of Pakistan in
Local currency current accounts
Local currency deposit account
Foreign currency current accounts
Foreign currency deposit account
6.1
6.2
6.3
With other central banks in
Foreign currency current accounts
Foreign currency deposit accounts
With National Bank of Pakistan in local currency current accounts
National Prize Bonds
6.4
6.5
19,179,233
4,514,737
23,693,970
19,497,872
3,499,452
22,997,324
22,998,175
1,646,896
4,732,230
29,377,301
21,787,307
3,864
1,317,252
3,857,969
26,966,392
16,588,955
2,946,037
21,377,121
97,749
94,081,133
11,264,675
2,646,161
22,250,603
91,013
86,216,168
6.1
This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of
the Banking Companies Ordinance, 1962.
6.2
This represents a US Dollar Settlement Account maintained with the SBP and current accounts maintained with the
SBP to comply with the statutory requirements issued from time to time.
6.3
This represents accounts maintained with the SBP to comply with Special Cash Reserve Requirement. The return
on this account is declared by the SBP on a monthly basis and, as at December 31, 2012, carries mark-up at the
rate of 0.00% (2011: 0.00%) per annum.
6.4
Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements
pertaining to the foreign branches of the Bank.
6.5
This represents placements with overseas central banks and carries mark-up at the rate of 0.25% (2011: 0.25% to
0.76%) per annum.
Note
7.
2012
2011
------- (Rupees in '000) -------
BALANCES WITH OTHER BANKS
Inside Pakistan
In current accounts
In deposit accounts
7.1
Outside Pakistan
In current accounts
In deposit accounts
7.2
29,517
900,007
929,524
21,099
2,000,006
2,021,105
5,872,030
8,432,772
14,304,802
15,234,326
4,468,767
7,895,951
12,364,718
14,385,823
7.1
These carry mark-up at rates ranging from 8.97% to 9.75% (2011: 11.35% to 11.50%) per annum.
7.2
These carry mark-up at rates ranging from 0.01% to 2.85% (2011: 0.01% to 3.00%) per annum and include
balances amounting to Rs.209 million (2011: Rs.193 million), maintained with an overseas bank against the
statutory reserves requirement of a foreign branch.
11
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
8.
8.1
2012
2011
------- (Rupees in '000) -------
LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings
Repurchase agreement lendings
Other lendings to financial institutions
8.2
8.3
Provision against lendings to financial institutions
8.4
130,000
12,116,719
12,246,719
(356,637)
11,890,082
8,246,736
14,260,450
22,507,186
1,860,820
10,385,899
12,246,719
Particulars of lendings to financial institutions - gross
In local currency
In foreign currencies
8.2
6,470,898
16,036,288
22,507,186
(553,728)
21,953,458
Securities held as collateral against repurchase agreement lendings
2012
2011
Further
Total
Held by
Further
Total
given as
Bank
given as
collateral /
collateral /
sold
sold
----------------------------------------------- (Rupees in '000) ----------------------------------------------Held by
Bank
Market Treasury Bills
6,470,898
6,470,898
-
6,470,898
6,470,898
-
-
-
Repurchase agreement lendings carry mark-up at rates ranging from 7.50% to 8.50% per annum and are due to
mature latest by January 2013. The market value of the securities held as collateral against these lendings
amounted to Rs.6,474.321 million.
8.3
Lendings pertaining to domestic operations carry mark-up at rates ranging from 10.31% to 12.51% per annum
(2011: 13.47% to 15.65% per annum) and are due to mature latest by August 2015, whereas lendings pertaining to
overseas operations carry mark-up at rates ranging from 0.20% to 4.00% per annum (2011: 0.06% to 4.30% per
annum) and are due to mature latest by April 2014.
8.4
This represents provision made against lendings to financial institutions with movement as follows:
2012
2011
------- (Rupees in '000) ------Opening balance
Exchange adjustments
Charge / (reversal)
Charge for the year
Reversals
Closing balance
12
356,637
28,599
10,779
179,667
(11,175)
168,492
553,728
345,858
345,858
356,637
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
9.
2012
2011
Given as
Total
Held by Bank
Given as
Total
collateral
collateral
-------------------------------------------------- (Rupees in '000) --------------------------------------------------
INVESTMENTS
Note Held by Bank
9.1
Investments by type
Held for trading securities
Market Treasury Bills
Pakistan Investment Bonds
Ordinary shares of listed companies
3,797,712
514,070
498,289
4,810,071
-
3,797,712
514,070
498,289
4,810,071
692,705
386,782
1,079,487
123,020,634
63,327,795
9,043,880
9,466,364
6,537,756
422,057
242,926
2,021,199
114,075
18,966,614
233,163,300
100,056,116
28,741,922
7,666,532
7,373,609
5,806,294
477,816
445,474
2,146,271
2,114,075
14,529,330
169,357,439
-
692,705
386,782
1,079,487
Available for sale securities
Market Treasury Bills
Pakistan Investment Bonds
Government of Pakistan Sukuk
Government of Pakistan Eurobonds
Ordinary shares of listed companies
Preference shares
Ordinary shares of unlisted companies
Term Finance Certificates
Units of mutual funds
Foreign bonds
78,285,856
63,327,795
9,043,880
9,466,364
6,537,756
422,057
242,926
2,021,199
114,075
18,966,614
188,428,522
44,734,778
44,734,778
28,236,295
28,236,295
128,292,411
28,741,922
7,666,532
7,373,609
5,806,294
477,816
445,474
2,146,271
2,114,075
14,529,330
197,593,734
Held to maturity securities
Market Treasury Bills
Pakistan Investment Bonds
Government of Pakistan Sukuk
Government of Pakistan Guaranteed Bonds
Term Finance Certificates
Sukuk Bonds
Participation Term Certificates
Debentures
Foreign bonds
Recovery note
Commercial paper
CDC SAARC Fund
54,799,452
31,273,156
300,000
42,654
3,971,848
1,498,551
4,939
4,392
210,727
307,517
211
92,413,447
-
54,799,452
31,273,156
300,000
42,654
3,971,848
1,498,551
4,939
4,392
210,727
307,517
211
92,413,447
50,545,793
23,468,779
300,000
51,202
3,832,169
1,863,468
10,661
4,392
1,994,978
289,214
50,438
450
82,411,544
-
50,545,793
23,468,779
300,000
51,202
3,832,169
1,863,468
10,661
4,392
1,994,978
289,214
50,438
450
82,411,544
3,030,136
6,307,994
250,000
200,000
250,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
240,000
832,485
6,981
12,047,596
-
3,030,136
6,307,994
250,000
200,000
250,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
240,000
832,485
6,981
12,047,596
3,030,136
5,100,000
250,000
200,000
250,000
100,000
2,600,000
1,600,000
90,000
90,000
3,100,000
240,000
6,981
16,657,117
-
3,030,136
5,100,000
250,000
200,000
250,000
100,000
2,600,000
1,600,000
90,000
90,000
3,100,000
240,000
6,981
16,657,117
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
345,958,376
1,482,011
589,837
100,000
30,100
2,201,948
271,707,535
Associates
United Growth and Income Fund
UBL Liquidity Plus Fund
UBL Shariah Stock Fund
United Islamic Income Fund
United Stock Advantage Fund
UBL Capital Protected Fund - II
UBL Savings Income Fund
UBL Islamic Sovereign Fund
UBL Islamic Retirement Savings Fund
UBL Retirement Savings Fund
UBL Principal Protected Fund - I
UBL Government Securities Fund
UBL Islamic Cash Fund
UBL Insurers Limited
Khushhali Bank Limited
Oman United Exchange Company, Muscat
9.7
Subsidiaries
United National Bank Limited, UK
9.8
United Bank AG Zurich, Switzerland
UBL Fund Managers Limited
UBL Bank (Tanzania) Limited
9.9
United Executors and Trustees Company Ltd.
Provision for diminution in value of
investments
9.3
Investments (net of provisions)
Surplus / (deficit) on revaluation of available
for sale securities
21.2
Surplus / (deficit) on revaluation of held for
trading securities
9.4
Total investments
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
301,223,598
44,734,778
(1,412,174)
-
(1,412,174)
(2,726,226)
299,811,424
44,734,778
344,546,202
4,648,328
393,416
5,041,744
(2,796,114)
2,236
(43,750)
2,236
-
304,461,988
45,128,194
13
349,590,182
268,981,309
266,141,445
28,236,295
28,236,295
32,921
28,269,216
1,482,011
589,837
100,000
30,100
2,201,948
299,943,830
(2,726,226)
297,217,604
(2,763,193)
(43,750)
294,410,661
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
9.2
2012
2011
------- (Rupees in '000) -------
Investments by segment
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
Government of Pakistan Sukuk
Government of Pakistan Eurobonds
Government of Pakistan Guaranteed Bonds
159,837,863
95,115,021
9,343,880
9,466,364
42,654
273,805,782
167,434,994
52,210,701
7,966,532
7,373,609
51,202
235,037,038
21,779,935
14,432,021
211
307,517
4,745,320
41,265,004
12,095,915
12,330,289
329,231
450
289,214
4,194,019
29,239,118
7,036,045
242,926
7,278,971
6,193,076
445,474
6,638,550
Preference shares
422,057
477,816
Units of Mutual Funds
114,075
2,114,075
2,777,101
3,215,946
5,993,047
2,686,884
3,291,556
5,978,440
1,498,551
4,392
4,939
-
1,534,237
4,392
10,661
50,438
15,571,558
18,859,065
345,958,376
299,943,830
Foreign Securities
Market Treasury Bills
Government bonds
Government Sukuk
CDC SAARC Fund
Recovery note
Other bonds
Ordinary shares
Listed companies
Unlisted companies
Term Finance Certificates
Listed companies
Unlisted companies
Sukuk Bonds
Debentures
Participation Term Certificates
Commercial paper
9.7, 9.8 & 9.9
Investments in subsidiaries and associates
Total investments at cost
Provision for diminution in value of investments
9.3
(1,412,174)
344,546,202
Investments (net of provisions)
Surplus / (deficit) on revaluation of available for sale securities
Surplus / (deficit) on revaluation of held for trading securities
21.2
9.4
5,041,744
2,236
349,590,182
Total investments
14
(2,726,226)
297,217,604
(2,763,193)
(43,750)
294,410,661
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
9.3
Provision for diminution in value of investments:
9.3.1
Opening balance
2012
2011
------- (Rupees in '000) ------2,726,226
Charged during the year
Reversed during the year
Net charge for the year
Reversed on disposal
Transfers out - net
Exchange difference
Written off during the year
Closing balance
9.3.2
496,390
(58,241)
438,149
456,777
(46,692)
410,085
(1,753,199)
(50,036)
51,617
(1,751,618)
(350,995)
(21,542)
30,678
(341,859)
(583)
1,412,174
2,726,226
362,722
135,366
40,194
312,060
850,342
1,705,848
145,468
37,209
354,405
2,242,930
115,639
129,345
4,939
307,517
4,392
561,832
1,412,174
104,136
74,893
10,661
289,214
4,392
483,296
2,726,226
362,722
135,366
312,060
810,148
1,705,848
145,468
354,405
2,205,721
115,639
129,345
307,517
40,194
4,939
4,392
602,026
1,412,174
104,137
74,892
289,214
37,209
10,661
4,392
520,505
2,726,226
Provision for diminution in value of investments by type
Available for sale securities
Ordinary shares of listed companies
Ordinary shares of unlisted companies
Foreign bonds
Preference shares
Held to maturity securities
Term Finance Certificates
Sukuks
Participation Term Certificates
Recovery note
Debentures
9.3.3
2,658,000
Provision for diminution in value of investments by segment
Equity securities
Listed companies
Unlisted companies
Preference shares
Debt securities
Term Finance Certificates
Sukuks
Recovery note
Foreign bonds
Participation Term Certificates
Debentures
9.3.4
The SBP, vide Letter No. BPRD/BRD-(Policy)/2012-13702 dated November 20, 2012 has permitted banks to maintain provision against
Term Finance Certificates issued by Azgard Nine Limited, classified in Loss category, at 50% of the exposure. Accordingly, provision for
diminution in value of investment include Rs.48.808 million (2011: Rs.Nil) against Azgard Nine Limited.
9.4
Unrealized gain / (loss) on revaluation of held for trading securities
Market Treasury Bills
Pakistan Investment Bonds
Ordinary shares of listed companies
575
(1,105)
2,766
2,236
(42)
(43,708)
(43,750)
9.5
Investments include securities which are held by the Bank to comply with the statutory liquidity requirements as set out under Section 29
of the Banking Companies Ordinance, 1962.
9.6
Investments include Rs.282 million (2011: Rs.282 million) held by the SBP and National Bank of Pakistan as pledge against demand loan,
TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank and Rs.5 million (2011: Rs.5 million) held by the
Controller of Military Accounts (CMA) under Regimental Fund Arrangements.
15
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
9.7
This represents the Bank's investment in Khushhali Bank Limited (KBL) which is incorporated under the Microfinance Institutions
Ordinance, 2001.
As mentioned in note 9.7 to the unconsolidated financial statements for the year ended December 31, 2011, a consortium led by the Bank
and including four international private equity funds had submitted a bid on February 16, 2012 for acquiring majority control of KBL. The
consortium's bid was selected as the highest bid by the selling shareholders of KBL and, after completion of regulatory consents and
approval from the SBP and the Competition Commission of Pakistan, a Share Purchase Agreement was successfully executed between
the Bank's consortium and the selling shareholders of KBL on June 4, 2012.
Post acquisition, the Bank's direct shareholding in KBL is 29.69%. The investment in KBL is classified as an associate due to the Bank's
significant influence on KBL by virtue of its shareholding.
9.8
During the year, the Bank's subsidiary United National Bank Limited adopted the trade name United Bank UK, however, the legal name
remains unchanged.
9.9
This represents the Bank's investment in UBL Bank (Tanzania) Limited, which was incorporated on March 13, 2012 and is in the process
of completing formalities for receiving a certificate for commencement of business. The Bank owns 99.99% of the paid up capital of UBL
Bank (Tanzania) Limited.
9.10
Information relating to investments required to be disclosed as part of the financial statements under the SBP's BSD Circular No. 4 dated
February 17, 2006, is given in Annexure 'A' to these unconsolidated financial statements. Details in respect of the quality of available for
sale securities are also disclosed in Annexure 'A'.
10.
ADVANCES
Note
Performing
Non-performing
Total
2012
2011
2012
2011
2012
2011
---------------------------------------------- (Rupees in '000) --------------------------------------------------------
Loans, cash credits,
running finances, etc.
In Pakistan
Outside Pakistan
10.2
230,815,515
92,765,638
323,581,153
217,075,307
71,963,532
289,038,839
42,504,178
7,102,448
49,606,626
41,798,946
6,226,151
48,025,097
273,319,693
99,868,086
373,187,779
258,874,253
78,189,683
337,063,936
19,991,220
8,171,075
28,162,295
351,743,448
15,840,765
10,310,200
26,150,965
315,189,804
5,404,969
2,335,401
7,740,370
57,346,996
2,711,544
380,183
3,091,727
51,116,824
25,396,189
10,506,476
35,902,665
409,090,444
18,552,309
10,690,383
29,242,692
366,306,628
(43,463,810)
(20,206)
(43,484,016)
(39,950,726)
(6,683)
(39,957,409)
(43,463,810)
(1,262,832)
(44,726,642)
(39,950,726)
(1,008,694)
(40,959,420)
13,862,980
11,159,415
364,363,802
325,347,208
Bills discounted and purchased
Payable in Pakistan
Payable outside Pakistan
Advances - gross
Provision against advances 10.4
- Specific
- General
Advances - net of provision
(1,242,626)
(1,242,626)
350,500,822
(1,002,011)
(1,002,011)
314,187,793
Total
Performing
Non-performing
2012
2011
2012
2011
2012
2011
---------------------------------------------- (Rupees in '000) -------------------------------------------------------10.1
Particulars of advances - gross
10.1.1 In local currency
In foreign currencies
249,048,415
102,695,033
351,743,448
227,995,007
87,194,797
315,189,804
47,607,666
9,739,330
57,346,996
44,165,843
6,950,981
51,116,824
296,656,081
112,434,363
409,090,444
272,160,850
94,145,778
366,306,628
10.1.2 Short term
Long term
218,613,468
133,129,980
351,743,448
216,561,336
98,628,468
315,189,804
57,346,996
57,346,996
51,116,824
51,116,824
218,613,468
190,476,976
409,090,444
216,561,336
149,745,292
366,306,628
16
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
10.2
Non-performing advances include advances having gross book value of Rs.14,554.414 million (2011: Rs.10,591.010 million) and net book value of
Rs.3,124.456 million (2011: Rs.3,207.771 million) which, though restructured and performing, have been placed under non-performing status as required by
the Prudential Regulations issued by the SBP, which require monitoring for at least one year before any upgradation is considered.
10.3
Advances include Rs.57,347 million (2011: Rs.51,117 million) which have been placed under non-performing status as detailed below:
Category of
classification
2012
Classified advances
Provision required
Provision held
Domestic
Overseas
Total
Domestic
Overseas
Total
Domestic
Overseas
Total
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
Other Assets Especially
Mentioned *
248,010
Substandard
2,138,136
Doubtful
2,540,057
Loss
42,982,937
47,909,140
(7)
Category of
classification
1,346,874
2,095,227
5,995,755
9,437,856
7
248,010
3,485,010
4,635,284
48,978,692
57,346,996
-
425,466
1,148,763
36,264,639
37,838,868
306,622
1,093,678
4,224,642
5,624,942
732,088
2,242,441
40,489,281
43,463,810
425,466
1,148,763
36,264,639
37,838,868
306,622
1,093,678
4,224,642
5,624,942
732,088
2,242,441
40,489,281
43,463,810
2011
Classified advances
Provision held
Provision required
Domestic
Overseas
Total
Domestic
Overseas
Total
Domestic
Overseas
Total
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
Other Assets Especially
Mentioned *
319,428
Substandard
2,274,422
Doubtful
4,276,895
Loss
37,639,745
44,510,490
747,378
1,081,319
4,777,637
6,606,334
319,428
3,021,800
5,358,214
42,417,382
51,116,824
431,607
2,156,044
32,996,932
35,584,583
174,625
794,875
3,396,643
4,366,143
606,232
2,950,919
36,393,575
39,950,726
431,607
2,156,044
32,996,932
35,584,583
174,625
794,875
3,396,643
4,366,143
606,232
2,950,919
36,393,575
39,950,726
* The Other Assets Especially Mentioned category pertains to agricultural finance only.
10.4
Particulars of provision against advances
Note
Opening balance
Exchange adjustments
Charge / (reversals)
Charge for the year
Reversals
Transfers in - net
Amounts written off
Closing balance
10.5
2012
2011
General
Total
Specific
General
Total
Specific
------------------------------------------------ (Rupees in '000) -----------------------------------------------39,950,726
391,565
1,008,694
58,824
40,959,420
450,389
33,534,272
234,146
1,425,496
27,467
34,959,768
261,613
5,825,305
(2,775,351)
3,049,954
404,272
(332,707)
43,463,810
290,497
(95,183)
195,314
1,262,832
6,115,802
(2,870,534)
3,245,268
404,272
(332,707)
44,726,642
9,791,241
(3,152,499)
6,638,742
303,565
(759,999)
39,950,726
157,904
(601,673)
(443,769)
(500)
1,008,694
9,949,145
(3,754,172)
6,194,973
303,065
(759,999)
40,959,420
10.4.1 General provision represents provision amounting to Rs. 264.970 million (2011: Rs.308.153 million) against consumer finance portfolio as required by the
Prudential Regulations issued by the SBP and Rs.949.862 million (2011: Rs.600.541 million) pertaining to overseas advances to meet the requirements of
monetary agencies and regulatory authorities of the respective countries in which the overseas branches operate. General provisions also include an
amount of Rs.48.000 million (2011: Rs.100.000 million) which the Bank carries as matter of prudence given the current economic environment and is based
on management estimates.
10.4.2 The Bank has availed the benefit of Forced Sale Value (FSV) of pledged stocks and mortgaged properties held as collateral against non-performing
advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by the Bank, the specific provision against nonperforming advances would have been higher by Rs.3,169 million (2011: Rs.3,811 million). The FSV benefit recognized will not be available for the
distribution of cash or stock dividend to shareholders.
10.4.3 The SBP, vide Letter No. BPRD/BRD-(Policy)/2012-13702 dated November 20, 2012 has permitted banks to maintain provision against Azgard Nine
Limited, classified in loss category, at 50% of the exposure. Accordingly, specific provision include Rs.67.501 million (2011: Rs.Nil) against Azgard Nine
Limited.
10.4.4 Particulars of provision against advances
2012
2011
Specific
General
Total
Specific
General
Total
------------------------------------------------ (Rupees in '000) -----------------------------------------------In local currency
In foreign currencies
37,594,095
5,869,715
43,463,810
17
312,970
949,862
1,262,832
37,907,065
6,819,577
44,726,642
35,397,059
4,553,667
39,950,726
408,153
600,541
1,008,694
35,805,212
5,154,208
40,959,420
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
10.5
2012
2011
------- (Rupees in '000) -------
Particulars of write-offs
10.5.1 Against provisions
Directly charged to profit and loss account
10.4
332,707
284,991
617,698
759,999
340,416
1,100,415
10.5.2 Write-offs of Rs.500,000 and above
Write-offs below Rs.500,000
10.6
413,592
204,106
617,698
834,700
265,715
1,100,415
10.6
Details of loan write-offs of Rs.500,000 and above
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of
written-off loans or any other financial relief of five hundred thousand rupees or above allowed to a person during
the year ended December 31, 2012 is given in Annexure 'B' to these unconsolidated financial statements. These
loans are written off as a book entry without any prejudice to the Bank's right of recovery against the customers.
Note
10.7
Particulars of loans and advances to executives, Directors,
associated companies etc.
Balance at the beginning of the year
Loans granted during the year
Repayments made during the year
Balance at the end of the year
11.
1,727,199
767,633
(326,014)
2,168,818
1,619,550
879,974
(772,325)
1,727,199
OPERATING FIXED ASSETS
Capital work-in-progress
Property and equipment
Intangible assets
11.1
2012
2011
------- (Rupees in '000) -------
11.1
11.2
11.3
1,681,230
21,317,645
1,432,194
24,431,069
944,750
20,541,088
1,496,040
22,981,878
11.1.1
947,695
529,907
193,824
9,804
1,681,230
612,932
201,821
107,547
22,450
944,750
Capital work-in-progress
Civil works
Equipment
Software
Advances to suppliers and contractors
11.1.2
11.1.1 This includes Rs.820.360 million (2011: Rs.519.317 million) in respect of construction of the Head Office building.
11.1.2 This includes Rs.110.125 million (2011: Rs.71.918 million) in respect of the Core Banking software.
18
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
11.2
Property and equipment
2012
ACCUMULATED DEPRECIATION
Net book
Note At January
At
At January Charge for
Exchange / At December
value at
1, 2012
31, 2012
December
1, 2012
the year /
Other
December
31, 2012
(deprecadjustments
31, 2012
iation on
deletions)
---------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------COST/ REVALUATION
Additions / Exchange /
(deletions)
Other
adjustments
Annual
rate of
depreciation %
Owned
Freehold land
3,041,776
-
11,782,784
25,121
-
107
-
374,216
60,873
-
-
Buildings on
leasehold land
2,096,283
24,421
-
Leasehold
Improvements
1,936,497
Furniture and
fixtures
Electrical, office
and computer
equipment
Leasehold land
Buildings on
freehold land
Vehicles
-
3,041,776
11,808,012
-
292,822
-
-
-
-
-
-
92
3,041,776
-
292,914
11,515,098
-
52,923
382,166
5
327,484
1,794,052
5
435,089
32,410
20,513
-
832
-
2,121,536
223,542
104,180
-
259,141
-
48,846
-
2,244,484
748,436
205,264
-
24,197
-
977,897
1,266,587
10 - 20
1,009,999
97,073
(20,332)
9,710
-
1,096,450
592,971
85,284
(19,043)
8,789
-
668,001
428,449
10 - 25
5,235,442
933,061
(97,679)
54,007
-
6,124,831
3,698,924
767,243
(96,010)
46,380
-
4,416,537
1,708,294
376,906
47,548
(34,644)
4,151
-
393,961
164,930
55,062
(27,919)
3,128
-
195,201
198,760
20 - 25
892,403
(19,167)
1,399,397
290,867
268,648
-
416,934
982,463
20 - 33.33
(205,926)
2,339,641
(358,581)
98,486
-
(142,581)
1,506,194
(285,553)
82,348
-
7,347,891
21,317,645
(238)
-
20 - 33.33
Assets under
operating lease
Ijarah assets
11.8
732,087
26,585,990
2012
28,665,536
6,044,902
2011
ACCUMULATED DEPRECIATION
Net book
Note At January
At
At January Charge for
Exchange At December
value at
01, 2011
31, 2011
December
01, 2011
the year /
Adjustment/
December
31, 2011
(deprecOther
31, 2011
iation on
adjustments
deletions)
---------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------COST/ REVALUATION
Additions /
Exchange
(deletions) Adjustment/
Other
adjustments
Annual
rate of
depreciation %
Owned
Freehold land
3,041,776
-
11,721,185
61,535
-
64
-
314,892
59,324
-
-
Buildings on
leasehold land
2,026,522
69,263
-
Leasehold
Improvements
1,661,185
Leasehold land
Buildings on
freehold land
Furniture and
fixtures
Electrical, office
and computer
equipment
Vehicles
-
3,041,776
11,782,784
-
292,767
-
-
-
-
-
55
-
3,041,776
-
292,822
11,489,962
-
32,410
341,806
5
223,542
1,872,741
5
374,216
15,002
17,408
-
498
-
2,096,283
122,471
101,339
-
249,305
-
26,007
-
1,936,497
562,856
173,575
-
12,005
-
748,436
1,188,061
10 - 20
945,272
94,443
(37,793)
8,077
-
1,009,999
544,095
78,019
(35,222)
6,079
-
592,971
417,028
10 - 25
4,562,070
732,357
(84,179)
25,194
-
5,235,442
3,054,986
698,845
(82,323)
27,416
-
3,698,924
1,536,518
281,949
162,050
(67,675)
582
-
376,906
168,108
45,639
(50,560)
1,743
-
164,930
211,976
20 - 25
739,979
237,151
(250,227)
1,665,428
(439,874)
5,184
65,606
-
732,087
368,474
441,220
20 - 33.33
5,128,759
47,298
(268)
290,867
26,585,990
119,230
(196,837)
1,234,055
(364,942)
6,044,902
20,541,088
(268)
20 - 33.33
Assets held under
operating lease
Ijarah assets
2011
11.8
25,294,830
19
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
11.3
Intangible assets
Cost
At January Additions / Exchange /
At
1, 2012
(deletions)
other
December
adjustments 31, 2012
2012
Accumulated Amortization
At January Charge for Exchange /
At
1, 2012
the year /
other
December
(reversal on adjustments 31, 2012
deletion)
Net book
value at
December
31, 2012
Annual rate
of amortisation %
-------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------Software
2,593,844
340,514
(5,344)
13,196
2,942,210
Cost
At January Additions / Exchange
At
1, 2011
(deletions) adjustment / December
other
31, 2011
adjustments
1,097,804
405,878
(5,136)
11,470
1,510,016
1,432,194
2011
Accumulated Amortization
At January Charge for Exchange
At
1, 2011
the year / adjustment / December
(reversal on
other
31, 2011
deletion) adjustments
Net book
value at
December
31, 2011
10 - 33.33
Annual rate
of amortisation %
-------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------Software
11.4
1,713,289
863,721
-
16,834
2,593,844
790,239
300,667
-
6,898
1,097,804
1,496,040
10 - 33.33
Revaluation of properties
The properties of the Bank were last revalued by independent professional valuers as at December 31, 2009. The revaluation was carried out by M/s.
Pirsons Chemicals Engineering (Private) Limited, M/s. Sadruddin Associates, M/s. Maricon Consultants (Private) Limited and M/s. Engineering Pakistan
International (Private) Limited on the basis of professional assessment of present market values and resulted in a surplus of Rs.4,139.592 million. Had
there been no revaluation, the carrying amount of the revalued assets at December 31, 2012 would have been as follows:
2012
2011
------- (Rupees in '000) ------Freehold land
Leasehold land
Buildings on freehold land
Buildings on leasehold land
11.5
Carrying amount of temporarily idle property of the Bank
11.6
The cost of fully depreciated assets still in use
Furniture and fixtures
Electrical, office and computer equipment
Vehicles
11.7
1,484,906
9,168,903
61,092
1,398,032
1,484,906
9,168,903
65,146
1,491,367
73,331
79,812
295,781
2,504,479
72,408
2,872,668
223,796
2,244,517
67,694
2,536,007
Details of disposal of operating fixed assets
The information relating to operating fixed assets disposed off during the year is given in Annexure 'C' and is an integral part of these unconsolidated
financial statements.
11.8
The Islamic Banking branches of the Bank enter into Ijarah transactions with customers, mainly in respect of property, plant and equipment and vehicles.
The Ijarah payments receivable from customers for each of the following periods under the terms of the respective arrangements are given below:
2012
2011
------- (Rupees in '000) ------Not later than one year
Later than one year but not later than five years
Later than five years
59,082
1,095,297
1,154,379
20
340,825
214,293
555,118
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
12.
DEFERRED TAX ASSET - NET
Deferred tax (liability) / asset - net
12.1
2012
2011
------- (Rupees in '000) -------
12.1
(277,970)
1,991,185
Movement in temporary differences during the year
2012
Recognised
Others
At December
31, 2012
in profit and
loss account
------------------------------ (Rupees in '000) ------------------------------
At January 1,
2012
Deductible temporary differences on
- Workers' Welfare Fund
- Cash flow hedge reserve
- Provision against off balance sheet items,
post retirement medical benefits and
advances
Taxable temporary differences on
- Surplus on revaluation of fixed assets
- Surplus on revaluation of investments
- Ijarah financing
- Accelerated tax depreciation
179,593
33,383
6,295
-
6,384,470
6,597,446
477,299
483,594
(5,106,310)
967,118
(14,371)
(452,698)
(4,606,261)
1,991,185
36,046
(97,441)
(61,395)
422,199
(22,077)
62,684
40,607
(233)
(2,731,728)
(2,731,961)
(2,691,354)
185,888
11,306
6,924,453
7,121,647
(5,070,497)
(1,764,610)
(14,371)
(550,139)
(7,399,617)
(277,970)
2011
Recognised
Others
At December
in profit and
31, 2011
loss account
------------------------------ (Rupees in '000) ------------------------------
At January 1,
2011
Deductible temporary differences on
- Deficit on revaluation of investments
- Workers' Welfare Fund
- Cash flow hedge reserve
- Provision against off balance sheet items,
post retirement medical benefits and
advances
Taxable temporary differences on
- Surplus on revaluation of fixed assets
- Ijarah financing
- Accelerated tax depreciation
1,162,302
144,740
69,545
34,853
-
(195,184)
(36,162)
967,118
179,593
33,383
5,204,300
6,580,887
1,158,098
1,192,951
22,072
(209,274)
6,384,470
7,564,564
(145)
(145)
(209,419)
(5,106,310)
(14,371)
(452,698)
(5,573,379)
1,991,185
(5,142,198)
(14,371)
(125,915)
(5,282,484)
1,298,403
21
36,033
(326,783)
(290,750)
902,201
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
13.
OTHER ASSETS
Income / mark-up accrued in local currency
Income / mark-up accrued in foreign currency
Advance taxation - net of provision for taxation
13.1
Receivable from staff retirement funds
Receivable on account of encashment of savings certificates
Receivable in respect of derivative transactions
Receivable from other banks against telegraphic transfers and demand drafts
Unrealized gain on forward foreign exchange contracts
Branch adjustment account
Unrealized gain on derivative financial instruments
19.3.1 & 23.2
Advance against Murabaha
Advance against Ijarah assets
Suspense accounts
Stationery and stamps on hand
Receivable against redemption of units of mutual funds
Non banking assets acquired in satisfaction of claims
13.3
Advances, deposits, advance rent and other prepayments
Advance against Pre-IPO investment
Others
Provision held against other assets
Other assets (net of provisions)
13.1
2012
2011
------- (Rupees in '000) -------
13.2
11,478,549
2,647,110
14,125,659
5,917,699
5,377
14,586
18,033
842,483
779,924
208,866
489,130
17,531
110,382
392,516
211,031
1,004,226
1,094,305
956,200
364,000
1,768,728
28,320,676
(3,575,994)
24,744,682
11,595,686
1,675,153
13,270,839
3,091,744
99,182
18,892
18,033
817,422
1,671,007
345,007
394,924
31,039
3,722
338,017
162,521
584,337
798,851
100,000
1,869,028
23,614,565
(2,777,829)
20,836,736
The Income Tax returns of the Bank have been filed up to the tax year 2012 (accounting year ended December 31,
2011) and were deemed to be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance) unless
amended by the Commissioner of Inland Revenue.
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2012, and created
additional tax demands of Rs.9,589 million, which have been fully paid as required under the law. The Bank has filed
appeals before the various appellate forums against these amendments. Where the appellate authorities have allowed
relief on certain issues, the assessing authorities have filed appeals before higher appellate forums. Where the appellate
authorities have not allowed relief the Bank has filed appeals before higher appellate forums. The management of the
Bank is confident that the appeals will be decided in favor of the Bank.
Under the Seventh Schedule to the Ordinance, banks are allowed to claim provisions against advances up to 5% of total
advances for consumer and small and medium enterprises and up to 1% of total advances for remaining advances.
Amounts above these limits are allowed to be claimed in future years. The Bank has booked a deferred tax asset of
Rs.3,229 million (2011: Rs.3,200 million) in respect of provisions in excess of the above mentioned limits.
The Bank also carries a tax asset amounting to Rs.4,114 million (2011: Rs.4,114 million), representing disallowance of
provisions against advances and off balance sheet obligations, for the periods prior to the applicability of the Seventh
Schedule. The management, in consultation with its tax advisor, is confident that these would be allowed to the Bank at
appellate levels.
The tax returns for Azad Kashmir (AK) Branches have been filed upto the tax year 2012 (financial year 2011) under the
provisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement
between banks and the Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessment
orders under the law.
The tax returns for overseas branches have been filed up to the accounting year ended December 31, 2011 under the
provisions of the laws prevailing in the respective countries, and are deemed as assessed unless opened for
reassessment.
22
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
13.2
2012
2011
------- (Rupees in '000) -------
Provision against other assets
Opening balance
Exchange adjustments
2,777,829
99,960
2,877,789
Charge for the year
Reversals
29
Transfers in - net
Amounts written off
Closing balance
2,352,444
40,183
2,392,627
213,940
(23,321)
190,619
148,979
(59,044)
89,935
739,139
(231,553)
3,575,994
363,782
(68,515)
2,777,829
13.3
The market value of non banking assets acquired in satisfaction of claims is Rs.1,072 million (2011: Rs.564 million).
14.
CONTINGENT ASSETS
There were no contingent assets as at the statement of financial position date.
Note
15.
BILLS PAYABLE
In Pakistan
Outside Pakistan
16.
5,754,550
124,493
5,879,043
62,705,626
4,508,819
67,214,445
47,000,993
2,952,258
49,953,251
61,914,550
5,299,895
67,214,445
46,417,726
3,535,525
49,953,251
12,460,384
32,050
3,535,341
822,015
16,849,790
45,064,760
61,914,550
12,384,999
1,675
42,264
3,516,846
1,410,276
17,356,060
28,241,667
45,597,727
4,508,819
791,076
5,299,895
67,214,445
3,772,258
5,044
578,222
4,355,524
49,953,251
Particulars of borrowings
In local currency
In foreign currencies
16.2
7,345,784
254,849
7,600,633
BORROWINGS
In Pakistan
Outside Pakistan
16.1
2012
2011
------- (Rupees in '000) -------
Details of borrowings
Secured
Borrowings from the State Bank of Pakistan under:
Export refinance scheme
Scheme for revival of SMEs and Agricultural activities in flood affected areas
Refinance facility for modernization of SME
Long term financing facility
Long term financing under export oriented projects
16.4
16.5
16.6
Repurchase agreement borrowings
16.7
Unsecured
Call borrowings
Overdrawn nostro accounts
Other borrowings
16.3
16.8
16.9
16.3
The Bank has entered into agreements with the SBP for extending export finance to customers. As per the terms of the agreement,
the Bank has granted the SBP the right to recover the outstanding amounts from the Bank at the date of maturity of the finances by
directly debiting the Bank's current account maintained with the SBP. These borrowings are repayable within six months, latest by
June 2013. These carry mark-up at a rate of 8.50% per annum (2011: 10.00% per annum).
16.4
These borrowings have been obtained from the SBP to finance modernization of Small and Medium Enterprises by providing
financing facilities for purchase of new plant and machinery for Balancing, Modernization and Replacement (BMR) of existing units
and setting up of new units. In addition, financing for import / local purchase of new generators upto a maximum capacity of 500 KVA
is also eligible under this Scheme. These borrowings are repayable within a period ranging from 3 years to 10 years and carry markup at a rate of 8.00% per annum (2011: 8.00% per annum).
23
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
16.5 These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new
technologies and modernizing their plant and machinery. These borrowings are repayable within a period ranging from 3 years
to 10 years. These carry mark-up at rates ranging from 6.50% to 10.10% per annum (2011: 6.50% to 11.00% per annum).
16.6 These borrowings have been obtained from the SBP for providing financing facilities for import of machinery, plant, equipment
and accessories thereof by export oriented units. These carry mark-up at a rate of 5.00% per annum (2011: 5.00% per annum).
16.7 These repurchase agreement borrowings are secured against Market Treasury Bills and carry mark-up at rates ranging from
8.77 % to 8.83 % per annum (2011: 11.00% to 11.75% per annum). These borrowings are repayable latest by January 2013.
The carrying value of securities given as collateral against these borrowings is given in note 9.1.
16.8 These are unsecured borrowings carrying mark-up at rates ranging from 0.53% to 4.00% per annum (2011: 0.35% to 13.15%
per annum) and are repayable latest by April 2013.
16.9 These borrowings carry mark-up at rates ranging from 1.00% to 1.73% per annum (2011: 1.85% to 1.98% per annum), and are
repayable by June 2013.
17.
2012
2011
------- (Rupees in '000) -------
DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits
Savings deposits
Sundry deposits
Margin deposits
Current accounts - remunerative
Current accounts - non-remunerative
Financial Institutions
Remunerative deposits
Non-remunerative deposits
193,621,057
240,777,697
7,662,302
3,846,759
7,228,020
233,724,104
686,859,939
172,496,615
206,364,946
7,061,853
4,047,310
6,047,055
204,004,415
600,022,194
8,191,096
4,884,483
13,075,579
699,935,518
6,824,281
6,133,664
12,957,945
612,980,139
505,593,512
194,342,006
699,935,518
467,520,886
145,459,253
612,980,139
2012
2011
17.1 Particulars of deposits and other accounts
In local currency
In foreign currencies
18.
SUBORDINATED LOANS - UNSECURED
Note Issue date Tenor
Rate % per
annum
Maturity
Frequency
of principal
redemption
------- (Rupees in '000) ------Term Finance
Certificates - I
August
2004
8 years
8.45%
August 2012
Semi
Annual
March
2005
8 years
9.49%
March 2013
Semi
Annual
1,999,400
1,999,480
6 months
KIBOR+1.70%
September
2014
Semi
Annual
1,330,664
1,996,000
Semi
Annual
5,989,200
5,991,600
9,319,264
11,317,080
Term Finance
Certificates - II
18.1
Term Finance
Certificates - III
18.1 September 8 years
2006
Term Finance
Certificates - IV
18.2
February 10 years For the first five February 2018
2008
years, 6 months
KIBOR+0.85%
and for the
remaining term, 6
months
KIBOR+1.35%
24
-
1,330,000
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
18.1
These represent listed Term Finance Certificates (TFCs) issued by the Bank. The liability of the Bank is
subordinated as to the payment of principal and profit to all other indebtedness of the Bank (including deposits) and
is not redeemable before maturity without approval of the SBP.
18.2
This represents listed Term Finance Certificates (TFCs) issued by the Bank. The liability of the Bank is
subordinated as to the payment of principal and profit to all other indebtedness of the Bank (including deposits).
The Bank has the right to exercise a call option, subject to SBP approval, after a period of 5 years from the issue
date.
Note
19.
OTHER LIABILITIES
Mark-up / return / interest payable in local currency
Mark-up / return / interest payable in foreign currency
Accrued expenses
Payable against purchase of securities
Payable under severance scheme
Deferred income
Unearned commission
Provision against off - balance sheet obligations
Unrealized loss on forward foreign exchange contracts
Deferred liabilities
Unrealized loss on derivative financial instruments
Workers' Welfare Fund payable
Insurance payable against consumer assets
Others
19.1
19.1
19.2
19.3.1 & 23.2
9,766,714
795,577
2,897,057
51,031
32,563
551,260
145,833
621,134
329,007
2,646,518
269,034
531,106
82,134
168,028
18,886,996
9,309,802
423,832
2,255,209
32,563
39,871
154,855
621,278
923,152
2,344,328
1,862,244
513,121
132,393
164,672
18,777,320
Provision against off - balance sheet obligations
Opening balance
Exchange adjustments
Charge during the year
Transfers during the year
19.2
2012
2011
------- (Rupees in '000) -------
29
621,278
356
249
(749)
621,134
669,891
172
4,144
(52,929)
621,278
Deferred liabilities
Provision for post retirement medical benefits
Deferred liability for outsourced services
Provision for compensated absences
36.4
36.4
25
1,114,855
464,242
1,067,421
2,646,518
1,139,591
379,600
825,137
2,344,328
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
19.3
Unrealized gain / (loss) on derivative financial instruments
Note
Unrealised gain / (loss)
Contract / notional amount
2012
2011
2012
2011
-------------------------- (Rupees in '000) --------------------------
- Interest rate swaps
- Cross currency swaps
- Fx options
- Forward sale contracts of government securities
8,059,417
12,490,616
74,468
308,867
20,933,368
19.3.1
8,444,451
35,041,839
43,486,290
Note
135,799
83,494
803
220,096
44,192
(1,511,512)
(1,467,320)
2012
2011
------- (Rupees in '000) -------
19.3.1 Unrealized gain / (loss) on derivative financial instruments - net
Unrealized gain on derivative financial instruments
Unrealized loss on derivative financial instruments
20.
SHARE CAPITAL
20.1
Authorized Capital
13
19
23.2
489,130
(269,034)
220,096
394,924
(1,862,244)
(1,467,320)
2012
2011
(Number of shares)
2,000,000,000
20.2
2,000,000,000
Ordinary shares of Rs.10 each
20,000,000
20,000,000
5,180,000
7,061,798
12,241,798
5,180,000
7,061,798
12,241,798
Issued, subscribed and paid-up capital
2012
2011
(Number of shares)
518,000,000
706,179,687
1,224,179,687
20.3
518,000,000
706,179,687
1,224,179,687
Fully paid-up ordinary shares of Rs.10 each
Issued for cash
Issued as bonus shares
In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional
Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the Bank.
The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the U.S
Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank pari
passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights or other
direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the terms and restrictions set
out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which the GDRs were issued may be
withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders will rank pari passu with other ordinary
shareholders in respect of voting powers. As at December 31, 2012, 15,286,868 (2011: 19,587,958) GDRs, representing
61,147,474 (2011: 78,351,834) shares were in issue.
20.4
Major shareholders (holding more than 5% of total paid-up capital)
Name of shareholder
2012
Percentage of
Number of
shares held
shareholding
Bestway (Holdings) Limited
State Bank of Pakistan
Bestway Cement Limited
His Highness Shaikh Nahayan Mabarak Al Nahayan
Sir Mohammed Anwar Pervez, OBE, HPk
467,611,120
238,567,381
93,649,744
67,329,867
62,433,163
38.20%
19.49%
7.65%
5.50%
5.10%
Number of
shares held
2011
Percentage of
shareholding
467,611,120
238,567,381
93,649,744
67,329,867
62,433,163
38.20%
19.49%
7.65%
5.50%
5.10%
As at December 31, 2012, ADG held 10.30% (2011: 10.30%) shareholding (including GDRs) and the Bestway Group (Bestway)
held 51.07% (2011: 51.07%) shareholding of the Bank.
26
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
21.
2012
2011
------- (Rupees in '000) -------
SURPLUS ON REVALUATION OF ASSETS NET OF DEFERRED TAX
Surplus / (deficit) arising on revaluation of assets - net of tax
Fixed assets
Securities
21.1
21.1
21.2
10,326,050
(1,796,075)
8,529,975
15,432,360
15,534,899
665
413
Surplus on revaluation of fixed assets
Surplus on revaluation of fixed assets as at January 01
Revaluation of fixed assets during the year
Exchange adjustments
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year
Related deferred tax liability on incremental depreciation charged
during the year
12.1
Less: Related deferred tax liability on
Less: Revaluation as at January 1
Less: Revaluation of fixed assets during the year
Less: Exchange adjustments
Less: Incremental depreciation charged on related assets
12.1
21.2
10,259,540
3,277,134
13,536,674
(66,942)
(66,919)
(36,046)
(102,323)
15,330,037
(36,033)
(102,539)
15,432,360
5,106,310
233
(36,046)
5,070,497
10,259,540
5,142,198
145
(36,033)
5,106,310
10,326,050
626,591
2,692,613
368,507
(1,879)
109,937
1,245,975
5,041,744
(1,764,610)
3,277,134
129,358
(714,954)
(551,038)
(38,452)
36,224
(1,624,331)
(2,763,193)
967,118
(1,796,075)
2,631,890
4,353,102
3,002,658
9,987,650
2,436,053
4,589,359
2,503,563
9,528,975
75,352,238
4,559,713
20,091,896
100,003,847
78,652,267
2,788,949
19,930,066
101,371,282
Surplus / (deficit) on revaluation of available for sale securities
Market Treasury Bills
Pakistan Investment Bonds
Listed shares
Mutual fund units
Term Finance Certificates, Sukuks, other Bonds etc.
Foreign bonds
Related deferred tax (liability) / asset
22.
CONTINGENCIES AND COMMITMENTS
22.1
Direct credit substitutes
12.1
Contingent liabilities in respect of guarantees given favouring
Government
Banking companies and other financial institutions
Others
22.2
Transaction-related contingent liabilities
Contingent liabilities in respect of performance bonds,
bid bonds, warranties, etc. given favouring
Government
Banking companies and other financial institutions
Others
27
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
2012
2011
------- (Rupees in '000) ------22.3
Trade-related contingent liabilities
Contingent liabilities in respect of letters of credit opened favouring
Government
Others
22.4
37,368,414
85,651,395
123,019,809
23,818,821
22,214,453
Other contingencies
Claims against the Bank not acknowledged as debts
22.5
54,515,574
91,938,820
146,454,394
Commitments to extend credit
The Bank makes commitments to extend credit in the normal course of its business but these being revocable
commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
2012
2011
------- (Rupees in '000) -------
22.6
Commitments in respect of forward foreign exchange contracts
Purchase
Sale
22.7
119,658,061
136,641,383
90,502,058
94,144,141
8,059,417
12,490,616
37,234
37,234
308,867
8,444,451
35,041,839
-
2,150,282
1,082,145
Commitments in respect of derivatives
Interest rate swaps
Cross currency swaps
FX options - purchased
FX options - sold
Forward sale of government securities
22.8
Commitments in respect of capital expenditure
22.9
For contingencies relating to taxation refer note 13.1
23.
DERIVATIVE INSTRUMENTS
Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying
assets or indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives
also include structured financial products that have one or more characteristics of forwards, futures, swaps and
options.
The Bank, as an Authorized Derivative Dealer (ADD) is an active participant in the Pakistan derivatives market and
offers a wide variety of derivatives products covering both hedging and market making to satisfy customers’ needs.
Where required, specific approval is sought from the SBP for each transaction:
The authority for approving policies lies with the Board of Directors (BoD) and the Board Risk Management
Committee (BRMC). The Market Risk Committee (MRC) is responsible for ensuring compliance with these policies.
With regard to derivatives, the MRC is authorized to:
-
Review the derivatives business with reference to market risk exposure and assign various limits in accordance
with the risk appetite of the Bank
28
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
-
Review the Derivatives Business Policy and recommend approval to the BRMC / BoD
-
Review and approve derivatives product programs
-
Authorize changes in procedures and processes regarding derivatives and structured products
Overall responsibility for derivatives trading activity lies with the Treasury and Capital Markets Group. Measurement &
monitoring of market and credit risk exposure and limits and its reporting to the senior management and the BoD is
done by Treasury Middle Office (TMO), which also coordinates with the business regarding approvals for derivatives
risk limits. Treasury Operations records derivatives activity in the Bank’s books, and handles its reporting to the SBP.
Derivatives risk management
There are a number of risks undertaken by the Bank, which need to be monitored and assessed.
Credit risk
Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an
adverse impact on the Bank’s profitability. Credit risk associated with derivatives transactions is categorized into
settlement risk and pre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit
Committee. The credit exposure of each counterparty is estimated and monitored by Treasury Middle Office on a daily
basis.
Market risk
The Bank, as a policy, hedges back-to-back all Options transactions. In addition, the Bank does not carry any
exchange risk on its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage
the interest rate risk of Interest Rate Derivatives, the Bank has implemented various limits which are monitored and
reported by Treasury Middle Office on a daily basis.
Liquidity risk
Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
The liquidity risk arises from the fact that in Pakistan interest rate derivatives generally have a uni-directional demand,
and no perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and
sensitivity limits, and can also hedge its risk by taking on and off balance sheet positions in the interbank market,
where available.
Operational risk
The staff involved in the trading, settlement and risk management of derivatives are carefully trained to deal with the
complexities involved in the process. Adequate systems and controls are in place to carry out derivatives transactions
smoothly. Each transaction is processed in accordance with the product program or a transaction memo, which
contains detailed accounting and operational aspects of the transaction to further mitigate operational risk. In addition,
the Treasury Middle Office and the Compliance and Control Department are assigned the responsibility of monitoring
any deviation from policies and procedures. The Bank’s Audit and Inspection Group also reviews this function, which
covers regular review of systems, transactional processes, accounting practices and end-user roles and
responsibilities.
The Bank uses a derivatives system which provides an end-to-end valuation solution, supports the routine
transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and
sensitivity analysis.
Treasury Middle Office produces various reports on a periodic basis which are reviewed by senior management.
These reports provide details of the derivatives business profile containing outstanding positions, profitability, risk
exposures and the status of compliance with limits.
29
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
23.1
Product analysis
Interest rate swaps
Number of
contracts
With banks for
Hedging
Market making
With other entities
Market making
Total
Hedging
Market making
Notional
principal
(Rupees in
'000)
Total
Hedging
Market making
Notional
principal
(Rupees in
'000)
3,444,084
1,291,449
4,735,533
3
1
4
9,546,350
2,365,750
11,912,100
4
3,323,884
6
4
6
10
3,444,084
4,615,333
8,059,417
3
7
10
Number of
contracts
With other entities
Market Making
Number of
contracts
4
2
6
Interest rate swaps
With banks for
Hedging
Market making
Cross currency swaps
Notional
principal
(Rupees in
'000)
Number of
contracts
Notional
principal
(Rupees in
'000)
4
37,234
37,234
578,516
4
37,234
9,546,350
2,944,266
12,490,616
4
4
8
37,234
37,234
74,468
Cross currency swaps
Number of
contracts
2012
FX options
Notional
principal
(Rupees in
'000)
4
-
2011
FX options
Number of
contracts
Notional
principal
(Rupees in
'000)
Forward sale contracts of
government securities
Number of
Notional
contracts
principal
(Rupees in
'000)
-
-
Total Notional
(Rupees in
'000)
13,027,668
3,657,199
16,684,867
1
308,867
4,248,501
1
1
308,867
308,867
13,027,668
7,905,700
20,933,368
-
Forward sale contracts of
government securities
Number of
Notional
contracts
principal
(Rupees in
'000)
Total Notional
(Rupees in
'000)
4
3
7
3,479,100
1,579,801
5,058,901
4
1
5
15,273,700
2,191,250
17,464,950
-
-
-
-
18,752,800
3,771,051
22,523,851
4
3,385,550
9
17,576,889
-
-
-
-
20,962,439
4
7
11
3,479,100
4,965,351
8,444,451
4
10
14
15,273,700
19,768,139
35,041,839
-
-
-
-
18,752,800
24,733,490
43,486,290
30
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
23.2
Maturity analysis of derivatives
Remaining maturity
2012
No. of
Notional
Unrealized
contracts
principal
(Loss)
Gain
Net
------------------------------------- (Rupees in '000) ----------------------------------
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 Years
3 to 5 years
5 to 10 years
Above 10 years
1
1
12
3
2
2
2
6
29
Remaining maturity
(343)
(72,511)
(4,675)
(1,388)
(14,754)
(175,363)
(269,034)
803
11,762
45,841
41
93,967
15,265
321,451
489,130
803
11,762
(343)
(26,670)
(4,634)
92,579
511
146,088
220,096
2011
No. of
Notional
Unrealized
contracts
principal
(Loss)
Gain
Net
------------------------------------- (Rupees in '000) ----------------------------------
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
2
8
2
5
8
25
24.
308,867
22,000
459,584
4,365,750
3,861,950
5,855,800
582,898
5,476,519
20,933,368
6,799,201
5,351,906
3,529,700
21,611,032
6,194,451
43,486,290
(2,581)
(71,252)
(48,378)
(1,623,223)
(116,810)
(1,862,244)
68,258
82,442
49,529
194,695
394,924
65,677
11,190
(48,378)
(1,573,694)
77,885
(1,467,320)
2012
2011
------- (Rupees in '000) -------
MARK-UP / RETURN / INTEREST EARNED
On loans and advances to customers
On lendings to financial institutions
Call money lending
Securities purchased under resale agreements
Advances to financial institutions
37,996,341
39,357,168
11,599
330,322
465,686
807,607
28,593
498,919
331,952
859,464
804,860
22,316,810
11,438,496
34,560,166
143,301
73,507,415
1,334,591
15,838,536
12,922,458
30,095,585
138,680
70,450,897
27,662,443
3,836,423
2,249,071
1,199,761
34,947,698
23,726,846
3,157,294
2,642,233
1,499,496
31,025,869
On investments in
Held for trading securities
Available for sale securities
Held to maturity securities
On deposits with financial institutions
25.
MARK-UP / RETURN / INTEREST EXPENSED
On deposits
On securities sold under repurchase agreements
On other short term borrowings
On long term borrowings
31
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
26.
GAIN ON SALE OF SECURITIES - NET
2012
2011
------- (Rupees in '000) -------
Federal government securities
Market Treasury Bills
Pakistan Investment Bonds
Ordinary shares of
Listed companies
Unlisted companies
Other securities
27.
435,093
17,078
452,171
(205,381)
464,386
170,391
170,391
157,477
518,710
578,666
284,427
124,002
2,965,657
24,879
(2,397)
3,975,234
580,085
106,969
142,879
1,563,446
39,679
(3,712)
2,429,346
8,773,262
548,507
442,961
163,849
(82,925)
3,068,514
2,203,159
626,391
982,341
1,506,194
344,957
829,830
504,430
266,819
398,467
1,047,993
125,545
181,534
405,878
103,483
410,530
154,791
87,952
53,655
52,898
27,949
34,937
34,133
84,803
145,275
23,528,112
7,748,487
423,268
400,821
142,354
(143,595)
2,514,090
1,645,442
577,756
799,445
1,234,055
230,936
711,979
405,620
244,286
313,831
947,748
141,434
152,094
300,667
52,997
330,574
126,949
78,371
51,256
44,590
30,028
53,944
34,553
71,141
119,773
19,784,894
ADMINISTRATIVE EXPENSES
Salaries, allowances etc.
Charge for compensated absences
Medical expenses
Contribution to defined contribution plan
Reversal in respect of defined benefit obligations
Rent, taxes, insurance, electricity etc.
Outsourced service charges including sales commission
Advertisement and publicity
Communications
Depreciation
Legal and professional charges
Banking service charges
Stationery and printing
Travelling
Cash transportation charges
Repairs and maintenance
Insurance expense
Vehicle expense
Amortization
Training and seminars
Office running expense
Entertainment
Cartage, freight and conveyance
Auditors' remuneration
Subscriptions
Brokerage expenses
Donations
Non-executive Directors' fees
Zakat paid by overseas branch
Miscellaneous expenses
28.1
184,128
6,714
190,842
OTHER INCOME
Charges recovered
Grant income
Rent on properties
Income from dealing in derivatives
Gain on sale of operating fixed assets
Loss on trading liabilities - net
28.
176,751
40,845
217,596
28.1
36.8
11.2
11.3
28.3
28.2
This includes employee benefits in the form of awards / bonus to all permanent staff including the Chief Executive
Officer and is determined on the basis of employees' evaluation and the Bank's performance during the year. The
aggregate benefit determined in respect of all permanent staff amounted to Rs.954.428 million (2011:
Rs.779.929 million).
32
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
28.2
2012
2011
------- (Rupees in '000) -------
Details of donations
Donations exceeding Rs.0.1 million
Institute of Business Administration
Hisaar Foundation
The Kidney Center Post Graduate Training Institute (TKCI)
Friends of Burns Centre
Al-Mehrab Tibbi Imdad
The Citizens Foundation
Marie Adelaide Leprosy Centre
Lahore University of Management Sciences
Kaghan Memorial Trust
Mukhtar Mai Women's Organization
Subh-e-Nau
Pakistan Foundation Fighting Blindness
SOS Children's Villages of Pakistan
Sindh Welfare Association of the Deaf
Naseer Construction Co. (Renovation of courts)
Children Welfare Society
Sindh Institute of Urology and Transplantation (SIUT)
Sargodian Spirit Trust
Drug Free Pakistan Foundation
The Oxford and Cambridge Society Karachi
Karwan-e-Hayat
Karachi Education Initiative
Prime Minister's Relief Fund
Civil Hospital Karachi
Medical Aid Foundation
Memon Medical Institute
Family Education Services Foundation
The Book Group
Khorfakkan Club
Thardeep Rural Development Program (TDRP)
20,000
3,060
2,700
1,296
1,000
1,000
850
500
500
500
500
500
450
324
277
200
200
200
200
165
150
-
10,000
2,850
2,160
850
500
736
500
75
20,000
10,000
2,000
1,000
1,000
900
437
235
200
Donations not exceeding Rs.0.1 million - others
365
34,937
501
53,944
28.2.1 Donations were not made to any donee in which a Director or his spouse had any interest.
28.3
Auditors' remuneration
Audit fee
Fee for audit of EPZ branch
Fee for other certifications
Out of pocket expenses
2012
Ernst & Young
BDO
Overseas
Total
Auditors
Ford Rhodes
Ebrahim
& Co.
Sidat Hyder
---------------------------- (Rupees in '000) ---------------------------6,455
250
2,105
3,143
11,953
6,455
2,075
2,633
11,163
30,522
17
30,539
43,432
250
4,180
5,793
53,655
2011
BDO
Overseas
Total
Ernst & Young
Auditors
Ford Rhodes
Ebrahim
& Co.
Sidat Hyder
---------------------------- (Rupees in '000) ---------------------------Audit fee
Fee for audit of EPZ branch
Fee for other certifications
Out of pocket expenses
6,455
250
2,835
2,269
11,809
33
6,455
1,700
2,210
10,365
29,062
20
29,082
41,972
250
4,535
4,499
51,256
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Note
29.
OTHER PROVISIONS - NET
Provision against other assets - net
Provision against off - balance sheet obligations
Other provisions
Provision / (reversal) against Ijarah Assets - Specific
Provision / (reversal) against Ijarah Assets - General
30.
2012
2011
------- (Rupees in '000) -------
13.2
19.1
190,619
249
158,434
12,485
141
361,928
89,935
4,144
137,309
(3,261)
(1,923)
226,204
WORKERS' WELFARE FUND
The Bank is liable to pay Workers' Welfare Fund @ 2% of profit before tax as per the financial statements or
declared income as per the income tax return, whichever is higher, under the Workers' Welfare Ordinance, 1971.
2012
2011
------- (Rupees in '000) ------31.
OTHER CHARGES
Penalties imposed by the SBP
Other penalties
102,964
998
103,962
104,326
613
104,939
2012
Azad Kashmir
Domestic
Total
Overseas
----------------------------------- (Rupees in '000) -------------------------------32.
TAXATION
Current
Prior years
Deferred
1,261,582
497,000
(448,015)
1,310,567
158,000
1,442
159,442
7,527,816
24,374
7,552,190
8,947,398
497,000
(422,199)
9,022,199
2011
Azad Kashmir
Domestic
Total
Overseas
----------------------------------- (Rupees in '000) -------------------------------Current
Prior years
Deferred
1,011,714
391,734
(491,456)
911,992
5,261
5,261
7,934,325
287,556
(416,006)
7,805,875
8,946,039
679,290
(902,201)
8,723,128
2012
2011
------- (Rupees in '000) ------32.1
Relationship between tax expense and accounting profit
Accounting profit for the year
Tax on income @ 35% (2011: 35%)
Tax effect of items that are either not included in determining taxable
profit or taxed at reduced rates (permanent differences)
Prior years tax charge
Others
Tax charge
34
27,028,927
24,222,791
9,460,124
8,477,977
(482,832)
497,000
(452,093)
9,022,199
(157,247)
679,290
(276,892)
8,723,128
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
33.
2012
2011
------- (Rupees in '000) -------
EARNINGS PER SHARE
Profit after taxation for the year
18,006,728
15,499,663
------- (Number of shares) ------Weighted average number of ordinary shares
1,224,179,687
1,224,179,687
---------- (Rupees) ---------Earnings per share - basic and diluted
14.71
12.66
33.1
Diluted earnings per share has not been presented separately as the Bank does not have any convertible instruments in issue at
December 31, 2012 or 2011.
34.
CASH AND CASH EQUIVALENTS
Note
Cash and balances with treasury banks
Balances with other banks
35.
6
7
STAFF STRENGTH
DEFINED BENEFIT PLANS
36.1
General description
94,081,133
15,234,326
109,315,459
86,216,168
14,385,823
100,601,991
------------ (Number) ------------
Permanent
On contract
Bank's own staff strength at the end of the year
Outsourced
Total number of employees at the end of the year
36.
2012
2011
------- (Rupees in '000) -------
9,056
29
9,085
3,971
13,056
8,784
27
8,811
3,514
12,325
The Bank operates a funded pension scheme established in 1986. The Bank also operates a funded gratuity scheme for new
employees and for those employees who have not opted for the pension scheme. The Bank also operates a contributory
benevolent fund scheme and provides post retirement medical benefits to eligible retired employees. The benevolent fund scheme
and the post-retirement medical scheme cover all regular employees of the Bank who joined the Bank pre-privatization. The Bank
also maintains an employee compensated absences scheme. The liabilities of the Bank in respect of these schemes are determined
based on actuarial valuations carried out using the Projected Unit Credit Method. Actuarial valuations of the defined benefit
schemes are carried out every year and the latest valuation was carried out as at December 31, 2012.
36.2
Number of Employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2012
2011
------------ (Number) ------------
Pension fund
Gratuity fund
Benevolent fund
Employee compensated absences
Post retirement medical benefit scheme
7,348
6,645
6,386
3,641
7,823
7,604
5,760
7,064
4,102
8,160
The pension fund, benevolent fund and post retirement medical benefit schemes include 5,349 (2011: 5,374), 2,745 (2011: 2,833)
and 4,182 (2011: 3,979) members respectively who have retired or whose widows are receiving the benefits.
36.3
Principal actuarial assumptions
The actuarial valuations were carried out as at December 31, 2012, using the following significant assumptions:
2012
2011
---------- Per annum ---------Discount rate
Expected rate of return on plan assets
Expected rate of salary increase
Expected rate of pension increase
12.00%
12.00%
10.00%
4.25%
35
13.00%
13.00%
8.00%
5.25%
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
36.4
Reconciliation of (receivable from) / payable to defined benefit plans
Note
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
medical
absences
medical
absences
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension
fund
Present value of funded obligations
Fair value of plan assets
3,537,429
(5,137,979)
(1,600,550)
1,600,550
-
Present value of unfunded obligations
Net actuarial gains or (losses) not recognized
(Receivable) / payable
36.5
Gratuity
fund
523,053
(409,974)
113,079
(118,456)
(5,377)
2012
Benevolent
fund
409,721
(836,962)
(427,241)
123,649
(303,592)
943,927
170,928
1,114,855
1,067,421
1,067,421
3,671,958
(5,477,630)
(1,805,672)
1,748,936
(56,736)
472,157
(381,841)
90,316
(95,098)
(4,782)
424,851
(827,840)
(402,989)
149,817
(253,172)
831,508
308,083
1,139,591
825,137
825,137
Movement in defined benefit obligations
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
medical
absences
medical
absences
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension
fund
Obligation at the beginning of the year
Current service cost
Interest cost
Benefits paid by the Bank
Recognition of prior service cost
Return allocated to other funds
Actuarial (gain) / loss on obligations
Obligation at the end of the year
36.6
36.8.1
3,671,958
10,431
155,593
(610,815)
284,869
25,393
3,537,429
Gratuity
fund
472,157
58,356
61,107
(93,440)
24,873
523,053
2012
Benevolent
fund
424,851
5,779
49,198
(84,794)
14,687
409,721
831,508
5,008
108,422
(106,033)
105,022
943,927
825,137
46,581
96,143
(306,223)
236,235
169,548
1,067,421
3,598,231
9,859
170,066
(412,233)
302,709
3,326
3,671,958
417,733
53,870
60,966
(60,087)
(325)
472,157
420,778
5,063
54,441
(79,180)
23,749
424,851
826,088
5,494
120,181
(96,835)
(23,420)
831,508
677,152
44,394
92,237
(275,283)
158,412
128,225
825,137
Movement in fair value of plan assets
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
absences
medical
absences
medical
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension
fund
Fair value at the beginning of the year
Expected return on plan assets
Contribution by the Bank
Contribution by the employees
Amount paid by the fund to the Bank
Actuarial gain / (loss) on plan assets
Fair value at the end of the year
36.7
5,477,630
651,709
(1,020,452)
29,092
5,137,979
Gratuity
fund
381,841
50,375
79,253
(98,284)
(3,211)
409,974
2012
Benevolent
fund
827,840
97,571
4,618
4,618
(94,751)
(2,934)
836,962
-
-
5,527,239
721,974
(771,758)
175
5,477,630
325,781
48,929
74,545
(66,421)
(993)
381,841
799,917
104,336
5,096
5,096
(76,885)
(9,720)
827,840
-
-
Movement in (receivable) / payable under defined benefit schemes
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
absences
medical
absences
medical
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension
fund
Opening balance
Mark-up receivable on Bank's balance with the fund
(Reversal) / charge for the year
Contribution by the Bank
Amount paid by the Fund to the Bank
Benefits paid by the Bank
Closing balance
36.8
(56,735)
(1,939)
(350,963)
1,020,452
(610,815)
-
Gratuity
fund
(4,783)
(61)
73,876
(79,253)
98,284
(93,440)
(5,377)
2012
Benevolent
fund
(253,172)
(168)
(55,591)
(4,618)
94,751
(84,794)
(303,592)
1,139,591
81,297
(106,033)
1,114,855
825,137
548,507
(306,223)
1,067,421
(3,592)
(1,742)
(410,926)
771,758
(412,233)
(56,735)
(8,185)
(130)
71,743
(74,545)
66,421
(60,087)
(4,783)
(180,783)
(274)
(64,724)
(5,096)
76,885
(79,180)
(253,172)
1,139,616
96,810
(96,835)
1,139,591
677,152
423,268
(275,283)
825,137
Charge for defined benefit plans
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
medical
absences
medical
absences
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------------------------10,431
58,356
5,779
5,008
46,581
9,859
53,870
5,063
5,494
44,394
155,593
61,107
49,198
108,422
96,143
170,066
60,966
54,441
120,181
92,237
(651,709)
(50,375)
(97,571)
(721,974)
(48,929)
(104,336)
236,235
158,412
(150,147)
4,788
(8,379)
(32,133)
169,548
(171,586)
5,836
(14,796)
(28,865)
128,225
284,869
302,709
(4,618)
(5,096)
(350,963)
73,876
(55,591)
81,297
548,507
(410,926)
71,743
(64,724)
96,810
423,268
Pension
fund
Current service cost
Interest cost
Expected return on plan assets
Recognition of prior service cost
Actuarial (gains) / losses
Return allocated to other funds
Employees' contribution
36.8.1
Gratuity
fund
2012
Benevolent
fund
36.8.1 This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note 5.10.1.
36.9
Actual return on plan assets
Amongst the defined benefit plans, the pension, gratuity and benevolent fund plans are funded. The actual returns earned on the assets during the year are:
2011
Post
Employee
Pension
Gratuity
Benevolent
Post
Employee
retirement compensated
fund
fund
fund
retirement compensated
medical
absences
medical
absences
benefit
benefit
------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------------------------651,709
50,375
97,571
721,974
48,929
104,336
29,092
(3,211)
(2,934)
175
(993)
(9,720)
680,801
47,164
94,637
722,149
47,936
94,616
-
Pension
fund
Expected return on plan assets
Actuarial gain / (loss) on plan assets
Actual return on plan assets
Gratuity
fund
2012
Benevolent
fund
36
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
36.10
Five year data on surplus / (deficit) of the plans and experience adjustments
2012
2011
2010
2009
2008
---------------------------------- (Rupees in '000) ---------------------------------(3,537,429) (3,671,958) (3,598,231) (3,585,208)
(3,625,280)
5,137,979
5,477,630
5,527,239
6,107,212
6,526,828
1,600,550
1,805,672
1,929,008
2,522,004
2,901,548
11,271
(13,450)
(214,828)
89,216
(87,141)
(29,096)
23,879
57,726
(282,376)
(1,195)
Pension Fund
Present value of defined benefit obligations
Fair value of plan assets
Surplus
Experience adjustments on plan liabilities [loss / (gain)]
Experience adjustments on plan assets [loss / (gain)]
Gratuity Fund
Present value of defined benefit obligations
Fair value of plan assets
Deficit
Experience adjustments on plan liabilities [loss / (gain)]
Experience adjustments on plan assets [loss / (gain)]
(523,053)
409,974
(113,079)
(28,098)
3,602
(472,157)
381,841
(90,316)
(4,001)
8,063
(417,733)
325,781
(91,952)
36,338
6,400
(365,292)
301,174
(64,118)
137,106
96,896
(384,786)
291,292
(93,494)
43,905
55,290
Benevolent Fund
Present value of defined benefit obligations
Fair value of plan assets
Surplus
Experience adjustments on plan liabilities [loss / (gain)]
Experience adjustments on plan assets [loss / (gain)]
(409,721)
836,962
427,241
(4,034)
1,473
(424,851)
827,840
402,989
4,886
20,826
(420,778)
799,917
379,139
1,505
2,737
(459,080)
796,302
337,222
(8,798)
(56,670)
(529,647)
739,180
209,533
138,712
144,550
Post retirement medical benefit
Present value of defined benefit obligations
Experience adjustments on plan liabilities [loss / (gain)]
(943,927)
99,652
(831,508)
(34,740)
(826,088)
(26,232)
(852,603)
37,473
(875,509)
761
825,137
677,152
731,908
613,602
Employee compensated absences
Present value of defined benefit obligations
36.11
1,067,421
Effects of a 1% movement in assumed medical cost trend rates
The annual medical expense entitlement is based on the non-monetized basic pay of employees as on June 30, 2001. Accordingly, movements in medical cost trend rates would not affect current service
cost, interest cost and defined benefit obligations for the post retirement medical benefit scheme.
36.12
Components of plan assets as a percentage of total plan assets
Pension fund
86.69%
0.00%
1.15%
10.72%
1.44%
100.00%
Government securities
Units of mutual funds
Ordinary shares of listed companies
Term finance certificates
Others (including bank balances)
2012
Gratuity
fund
95.00%
0.00%
0.89%
3.36%
0.75%
100.00%
Benevolent
fund
94.27%
0.00%
1.24%
1.84%
2.65%
100.00%
Pension
fund
89.02%
0.00%
0.68%
10.27%
0.03%
100.00%
2011
Gratuity
fund
98.00%
0.00%
0.60%
0.69%
0.71%
100.00%
Benevolent
fund
96.47%
0.00%
1.23%
2.29%
0.01%
100.00%
As per actuarial recommendations, the expected return on plan assets was assumed at 12% per annum on Pension Fund assets, Gratuity Fund assets and Benevolent Fund assets. The expected return on
plan assets was determined by considering the expected returns available on the underlying assets.
36.13
Expected contributions to be paid to the funds in the next financial year
The Bank contributes to the pension and gratuity funds according to the actuary's advice. Contribution to the benevolent fund is made by the Bank as per the rates set out in the benevolent fund scheme.
Based on actuarial advice, the management estimates that the charge / (reversal) in respect of defined benefit plans for the year ended December 31, 2013, subject to the provisions of the Trust Deeds,
would be as follows:
2013
Benevolent
fund
Employee
Post retirecompensated
ment
absences
medical
benefit
---------------------------------- (Rupees in '000) ---------------------------------Pension
fund
(170,393)
Expected (reversal) / charge for the year
37.
37.1
Gratuity
fund
80,064
(46,697)
118,736
367,096
OTHER EMPLOYEE BENEFITS
Defined contribution plan
The Bank operates a contributory provident fund scheme for 6,645 (2011: 5,438) employees who are not in the pension scheme. The employer and employee each contribute 8.33% of the basic salary to
the funded scheme every month.
37.2
Employee Motivation and Retention Scheme
The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of the scheme for each year, if any, is fixed, and is accounted for in the year to which the
scheme relates. The scheme is managed by separate Trusts formed in respect of each year. During the year, Rs.290.612 million (2011: Rs.170.563 million) and Rs.30.796 million (2011: Rs.24.528 million)
were received by the Executives and the Chief Executive respectively from the scheme.
37.3
Benazir Employees’ Stock Option Scheme
On August 14, 2009, the Government of Pakistan (GoP) launched the Benazir Employees' Stock Option Scheme ("the Scheme") for employees of certain State Owned Enterprises (SOEs) and non-SOEs.
The Scheme needs to be accounted for by the covered entities, including the Bank, under the provisions of amended IFRS 2, Share Based Payments. However, keeping in view the difficulties that may be
faced by the entities covered under the Scheme, the SECP has granted exemption to such entities from the application of IFRS 2 to the Scheme.
Had the exemption not been granted, the staff costs of the Bank for the year would have been higher by Rs.583 million (2011: Rs.114 million), profit before taxation would have been lower by Rs.583 million
(2011: Rs.114 million), unappropriated profit would have been lower by Rs.1,279 million (2011: Rs.696 million) and reserves would have been higher by Rs.1,279 million (2011: Rs.696 million), hence, there
would have been no impact on net equity. Further, earnings per share would have been lower by Rs.0.48 per share (2011: Rs.0.09 per share).
37
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
38.
COMPENSATION OF DIRECTORS AND EXECUTIVES
President / Chief
Executive
Directors
Executives
2012
2011
2012
2011
2012
2011
------------------------------------------ (Rupees in '000) ----------------------------------------Fees
-
-
34,133
34,553
83,526
1,457
67,783
-
-
3,384,117
2,858,140
1,243
-
-
301,221
254,073
Charge for defined contribution plan
2,263
2,030
-
-
71,479
64,156
Rent and house maintenance
3,607
3,623
-
-
454,066
448,887
Utilities
847
901
-
-
222,226
199,352
Medical
21
234
-
-
101,009
90,637
-
-
-
-
324,243
334,846
6,203
6,510
-
-
169,342
152,300
97,924
82,324
34,133
34,553
5,027,703
4,402,391
1
1
8
8
1,456
1,353
Managerial remuneration
Charge for defined benefit plans
Conveyance
Others
Number of persons
-
-
The Bank's President / Chief Executive Officer and certain Executives are provided with free use of Bank maintained
cars and household equipment.
In addition to the above, all Executives including the Chief Executive Officer of the Bank, are also entitled to certain
short and long term employee benefits which are disclosed in notes 36 and 37 to these financial statements.
39.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of quoted investments other than those classified as held to maturity is based on quoted market price.
The fair value of unquoted equity investments, other than investments in associates and subsidiaries, is determined
on the basis of the break-up value of these investments as per their latest available audited financial statements.
The fair value of fixed term loans, other assets, other liabilities and fixed term deposits cannot be calculated with
sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable data
regarding market rates for similar instruments.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly
different from their carrying values since these are either short-term in nature or, in the case of customer loans and
deposits, are frequently repriced.
38
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
40.
SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
For the year ended December 31, 2012
Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
---------------------------------------------------- (Rupees in '000) ----------------------------------------------------Total income
Total expenses
Profit before tax
Segment return on assets (ROA)
Segment cost of funds
246,954
(371,504)
(124,550)
-7.7%
0.8%
11,244,132
(673,840)
10,570,292
1.9%
7.7%
34,016,112
(20,138,123)
13,877,989
1.5%
4.1%
8,515,021
(6,512,949)
2,002,072
0.4%
7.7%
1,668,716
(965,592)
703,124
-
-
For the year ended December 31, 2011
Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
---------------------------------------------------- (Rupees in '000) ----------------------------------------------------Total income
Total expenses
Profit before tax
Segment return on assets (ROA)
Segment cost of funds
470,136
(266,567)
203,569
2.8%
0.3%
6,723,574
(2,553,581)
4,169,993
0.9%
7.9%
35,052,073
(20,221,694)
14,830,379
1.7%
4.1%
8,943,499
(4,556,496)
4,387,003
1.0%
7.3%
953,999
(322,152)
631,847
-
-
As at December 31, 2012
Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
---------------------------------------------------- (Rupees in '000) ----------------------------------------------------Segment assets (gross of NPLs provisions)
Segment non performing loans (NPLs)
Segment provision held against NPLs
Segment liabilities
1,433,174
1,016,151
441,892
1,069,695
414,116,266
2,122,695
1,520,078
401,751,874
667,040,326
25,272,491
20,660,063
637,495,291
324,520,391
28,735,549
20,781,624
302,458,554
84,050,176
200,110
60,153
13,757,283
(553,297,871)
(553,297,871)
As at December 31, 2011
Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
---------------------------------------------------- (Rupees in '000) ----------------------------------------------------Segment assets (gross of NPLs provisions)
Segment non performing loans (NPLs)
Segment provision held against NPLs
Segment liabilities
1,890,059
616,212
149,404
1,606,252
363,569,373
2,158,898
1,674,325
361,147,814
641,206,230
25,341,535
20,996,611
611,180,253
289,494,457
22,987,026
17,117,233
269,396,829
81,161,845
13,153
13,153
14,887,182
(559,311,497)
(559,311,497)
Segment assets and liabilities include inter segment balances.
Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.
41.
TRUST ACTIVITIES
The Bank is not engaged in any significant trust activities. However, it acts as custodian for some of the Term Finance Certificates it arranges
and distributes on behalf of its customers.
42.
RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its associates, subsidiary companies, employee benefit plans and its Directors and executive
officers (including their associates).
The Bank enters into transactions with related parties in the normal course of business. Contributions to and accruals in respect of staff
retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration
to the executives / officers is determined in accordance with the terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these unconsolidated
financial statements, are as follows:
39
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
42.1 RELATED PARTY TRANSACTIONS
2012
2011
Key
Subsidiaries Associates Other related
Directors
Key
Subsidiaries Associates Other related
manageparties
manageparties
ment
ment
personnel
personnel
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
Directors
Balances with other banks
In current accounts
In deposit accounts
Investments
Opening balance
Transfer in
Investment made during the year
Investment redeemed / disposed off during the year
Closing balance
-
-
1,400,068
1,291,442
2,691,510
-
-
2,201,948
1,322,014
3,523,962
Provision for diminution in value of investments
Purchase of investment
Advances
Opening balance
Addition during the year
Repaid during the year
Closing balance
-
871
(871)
-
-
2,201,948
2,201,948
48,158
-
-
-
-
-
969
(98)
871
122,016
118,883
(116,736)
124,163
107
17,319
1,282,323
(1,282,323)
-
1,004,226
-
3,305
5,377
364,000
-
449,740
4,548,669
86,365,214
(4,548,669) (86,508,739)
306,215
63,495
131,902
1,217,179
1,485,930
910,308 162,987,974 55,089,236
82,446,405
(890,995) (162,977,220) (55,487,083) (82,023,478)
82,808
142,656
819,332
1,908,857
-
-
-
-
-
Contingencies and Commitments
Letter of guarantee
Forward foreign exchange contracts purchase
Forward foreign exchange contracts sale
264,553
193,224
(54,736)
403,041
-
-
75,061
-
882,673
1,708,188
2,590,861
-
Borrowings
Opening balance
Borrowings during the year
Settled during the year
Closing balance
Subordinated loans
-
-
198
-
Other Liabilities
Interest / mark-up payable on deposits
Interest / mark-up payable on borrowings
Interest / mark-up payable on subordinated loans
Unrealised loss on derivative transactions
Unearned income
Others
-
-
-
2,898,779
6,948,406
(3,673,222)
6,173,963
16,657,117
200,000
2,040,479
(6,850,000)
12,047,596
773,770
773,770
-
Other Assets
Interest mark-up accrued
Receivable from staff retirement funds
Prepaid insurance
Advance for Pre-IPO investment
Receivable against redemption of units of mutual funds
Other receivable
Deposits and other accounts
Opening balance
Received during the year
Withdrawn during the year
Closing balance
-
5
-
5,998
-
11
141,762
33,717
(53,463)
122,016
139
-
-
-
-
821
2,403
1,628,297
(1,628,297)
-
7,382,192
13,550,000
(4,275,075)
16,657,117
-
-
-
9,328
837
-
35,518
-
-
6,285,868
6,378,146
71,993
-
2,914,491
2,817,341
1,782,540
-
5
222
0
-
-
-
500,006
500,006
317,176
(52,623)
264,553
-
58,259
-
-
-
-
805
100,000
-
-
2,796,798
24,857
146,247
3,824,208
15,000,221 1,817,159 112,822,806 36,730,601
(14,898,240) (1,778,521) (112,837,151) (39,337,630)
2,898,779
63,495
131,902
1,217,179
167
-
0
101,170
-
170
-
56
-
-
-
-
5,998
4,549
99,182
-
428,195
899,480
(877,935)
449,740
957,640
82,625,198
(82,096,908)
1,485,930
-
158
154
10,000
64
167
-
2,844
761
1,623,223
-
696,955
696,955
75,668
-
1,451,040
1,448,555
2012
2011
Key
Subsidiaries Associates Other related
Directors
Key
Subsidiaries Associates Other related
manageparties
manageparties
ment
ment
personnel
personnel
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
Directors
Mark-up / return / interest earned
Commission / charges recovered
Dividend income
Net (loss) / gain on sale of securities
Realised gain on derivative transactions
Other income
Mark-up / return / interest paid
Remuneration paid
Post employment benefits
Non-executive directors' fee
Net charge for defined contribution plans
Net reversal for defined benefit plans
Payment for employee motivation and retention scheme
Donation
Insurance premium paid
Insurance claims settled
77
30
7,957
24
685
57,260
278
66,211
38,500
194,070
34,133
-
1,576
475,741
16,036
-
911
-
-
-
-
-
40
987
2,058,392
(289,189)
4,682
13,662
257,745
151,292
40,042
448
1,136
8,006
1,123,975
100,169
163,849
(272,450)
250,000
75
-
126
5
-
7,490
11
2,398
2,004
136
31,703
1,142
596
457,847
36,085
90
111,731
34,553
-
2,845
375,173
14,203
-
1,572
-
112,260
-
-
250,661
205,459
-
-
25,335
1,860
942
2,318,442
34,468
142,354
(305,143)
230,000
20,000
-
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
43.
CAPITAL ADEQUACY
43.1
The Basel II Framework is applicable to the Bank whereby the Standardized Approach for reporting Capital Adequacy is
currently implemented. Under this approach, credit risk and market risk exposures are measured using the Standardized
Approach and operational risk is measured using the Basic Indicator Approach.
The Bank’s capital adequacy is reported using the rules and ratios provided by the State Bank of Pakistan.
The capital adequacy ratio is a measure of the amount of a Bank's capital expressed as a percentage of its risk weighted
assets (RWAs). Measuring RWAs requires risk mitigants to be applied to the amount of assets shown on a Bank's
statement of financial position and assignment of weightages according to the degree of inherent risk.
The Bank has developed an Internal Capital Adequacy Assessment Process (ICAAP) as per the guidelines provided by
the SBP. This framework has been approved by the Bank’s Board of Directors and submitted to the SBP. The Bank
additionally covers risks not yet included under Pillar I, so as to carry adequate capital to cater for any future business
requirements. The Bank reviews the ICAAP framework on an annual basis and changes/updates are recommended to
the Basel II committee for onward submission to the Board of Directors.
The Bank plans to move towards the Advanced Approach for Basel II, including the Foundation Internal Ratings Based
Approach for credit risk, Internal Models Approach for market risk and the Alternate Standardized Approach for
operational risk.
43.2
Capital Management
The objective of managing capital is to safeguard the Bank's ability to continue as a going concern. It is the policy of the
Bank to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The impact of the level of capital on shareholders’ return is also recognized and the Bank
maintains a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital position.
Statutory minimum capital and capital adequacy requirements
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of
accumulated losses) for Banks to be raised to Rs.10 billion by the year ending December 31, 2013. The paid-up capital of
the Bank for the year ended December 31, 2012 stood at Rs.12,241.798 million (2011: Rs.12,241.798 million) and is in
compliance with SBP requirements.
Banks are also required to maintain a minimum Capital Adequacy Ratio (CAR) of 10% of the risk weighted exposure of
the Bank. The Bank’s CAR as at December 31, 2012 was 14.81% (2011: 14.28%). The Bank and its individually regulated
operations have complied with all capital requirements throughout the year.
Tier 1 capital includes fully paid-up capital, balance in share premium account, general reserves as per the financial
statements and net un-appropriated profits after deduction of the book value of goodwill / intangibles, deficit on
revaluation of available for sale investments and 50% of investments in equity and other regulatory capital of majority
owned securities or other financial subsidiaries not consolidated in the statement of financial position as per the guidelines
laid under the Basel II framework.
Tier 2 capital includes general provisions for loan losses, surplus on the revaluation of fixed assets and equity
investments, foreign exchange translation reserves and subordinated debts (upto a maximum of 50% of Tier 1 capital)
after deduction of 50% of investments in equity and other regulatory capital of majority owned securities or other financial
subsidiaries not consolidated in the statement of financial position as per the guidelines laid under the Basel II framework.
Tier 3 capital has also been prescribed by the SBP for managing market risk; however, the Bank does not have any Tier 3
capital.
Banking operations are categorized as either Trading Book or Banking Book and RWAs are determined according to
specified requirements of the SBP that seek to reflect the varying levels of risk attached to assets and off-balance sheet
exposures. The total RWAs comprise of credit risk, market risk and operational risk.
41
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
43.3
Capital Adequacy Ratio
The capital adequacy ratio, calculated in accordance with the SBP's guidelines on capital adequacy was as follows:
2012
2011
--------- (Rupees in '000) --------Regulatory capital base
Tier 1 Capital
Fully paid-up capital
Statutory reserves
Un-appropriated profit
Total Tier 1 Capital
Deductions:
Book value of intangibles
Shortfall in provisions irrespective of relaxation provided
Reciprocal cross holdings by banks
50% of investments in equity and other regulatory capital of majority owned
securities or other financial subsidiaries not consolidated in the statement
of financial position
Total eligible Tier 1 Capital
Supplementary Capital
Tier 2 Capital
General provisions or general reserves for loan losses - upto a maximum
of 1.25% of risk weighted assets
Revaluation reserves up to 45%
Foreign exchange translation reserves
Subordinated loans - upto a maximum of 50% of total eligible Tier 1 capital
Cash flow hedge reserve
Total Tier 2 Capital
Deductions:
50 % of investments in equity and other regulatory capital of majority owned
securities or other financial subsidiaries not consolidated in the statement
of financial position
Total eligible Tier 2 Capital
Total eligible Capital
Risk weighted exposures
Credit risk
Claims on:
Federal and Provincial Governments, SBP
and other sovereigns – in foreign currency
Public Sector Enterprises
Banks
Corporates
Retail portfolio
Secured by residential property
Past due loans
Listed equity investments
Unlisted equity investments
Investments in fixed assets
Other assets
Market risk
Interest rate risk
Equity exposure risk
Foreign exchange risk
Operational risk
Capital adequacy ratio
Total eligible regulatory capital held
Total risk weighted assets
Capital adequacy ratio
12,241,798
17,797,537
36,341,135
66,380,470
12,241,798
15,996,864
33,534,116
61,772,778
1,626,018
738,125
19,498
1,603,587
756,000
5,998
2,301,714
4,685,355
61,695,115
1,224,465
3,590,050
58,182,728
1,262,832
9,167,301
11,267,676
6,115,067
(32,298)
27,780,578
1,008,694
5,701,125
8,912,150
6,783,480
(95,377)
22,310,072
2,301,714
1,224,465
25,478,864
87,173,979
21,085,607
79,268,335
Capital requirements
Risk weighted assets
2012
2011
2012
2011
--------------------------------- (Rupees in '000) ---------------------------------
4,974,474
1,088,721
4,019,364
22,434,817
2,355,548
155,967
1,856,233
182,635
1,677,854
2,280,505
1,042,511
42,068,629
2,912,091
894,849
3,945,216
22,290,315
2,586,963
164,803
1,874,084
134,042
2,588,180
2,137,829
803,222
40,331,594
49,744,740
10,887,206
40,193,636
224,348,168
23,555,479
1,559,671
18,562,333
1,826,351
16,778,535
22,805,050
10,425,110
420,686,279
29,120,906
8,948,485
39,452,164
222,903,149
25,869,631
1,648,031
18,740,841
1,340,416
25,881,796
21,378,291
8,032,224
403,315,934
4,555,843
1,117,071
144,654
5,817,568
7,621,902
55,508,099
3,580,837
955,828
627,128
5,163,793
6,992,693
52,488,080
56,948,038
13,963,390
1,808,180
72,719,608
95,273,778
588,679,665
44,760,466
11,947,850
7,839,103
64,547,419
87,408,658
555,272,011
87,173,979
588,679,665
14.81%
79,268,335
555,272,011
14.28%
42
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
43.4
Credit Risk - General Disclosures
The Bank follows the Standardized Approach for its Credit Risk Exposures, which sets out fixed risk weights
corresponding to external credit ratings or type of exposure, whichever is applicable.
Under the Standardized Approach, the Capital requirement is based on the credit rating assigned to
counterparties by External Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Bank selects
particular ECAIs for each type of claim. The Bank utilizes the credit ratings assigned by PACRA (Pakistan Credit
Rating Agency), JCR-VIS (Japan Credit Rating Company Limited – Vital Information Systems), Fitch, Moody’s and
Standard & Poors. The Bank also utilizes rating scores of Export Credit Agencies participating in the “Arrangement
on Officially Supported Export Credits”.
Types of exposures and ECAI's used
JCR-VIS
PACRA
FITCH
Moody's
S&P
ECA scores







-


-

-

-
Corporate
Banks
Sovereigns
Public sector enterprises
Mapping to SBP Rating Grades
For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The
mapping tables used for converting ECAI ratings to SBP rating grades are given below:
Long Term Rating Grades Mapping
SBP Rating grade
Fitch
Moody’s
S&P
PACRA
JCR-VIS
ECA Scores
1
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1
B2
B3
Caa1 and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
0
1
2
3
4
5
6
Short – Term Rating Grades Mapping
SBP Rating Grade
Fitch
Moody’s
S&P
PACRA
JCR-VIS
S1
S1
S2
S3
S4
F1
F1
F2
F3
Others
P-1
P-1
P-2
P-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
43
2
3
4
5
6
7
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
2012
----------------- (Rupees in '000) ----------------Rating
Amount
Deduction
Net amount
category / outstanding
CRM
risk
weights
23,791,720
23,791,720
Credit exposures subject to Standardized Approach
Exposures
Cash and cash equivalents
Claims on Federal and Provincial Governments and
SBP, denominated in PKR
Foreign currency claims on SBP arising
out of statutory obligations in
Pakistan
Claims on other sovereigns and on
Government of Pakistan or provincial
governments or SBP denominated in
currencies other than PKR
23,088,337
-
23,088,337
-
121,016,072
-
167,163,379
51,224,862
115,938,517
121,016,072
1
2
3
4,5
6
Unrated
6,323,688
1,665,551
2,603,426
10,730,934
2,220,842
27,758,497
44,979,250
26,422,834
39,039,389
150,868
662,516
216,560,541
282,836,148
612,611
3,381,066
3,993,677
41,874,325
34,576,645
3,027,661
5,873,036
6,369,567
91,721,234
7,556,089
70,046,865
77,602,954
34,157,061
4,456,204
38,613,265
4,247
18,159,153
18,163,400
6,451,430
6,451,430
1,072
51,294,459
51,295,531
2,749,755
2,749,755
6,323,688
1,665,551
2,603,426
10,730,934
2,220,842
27,758,497
44,979,250
26,422,834
39,035,142
150,868
662,516
198,401,388
264,672,748
612,611
3,381,066
3,993,677
35,422,895
34,576,645
3,027,661
5,873,036
6,369,567
85,269,804
7,555,017
18,752,406
26,307,423
31,407,306
4,456,204
35,863,510
5,175,221
1,432,766
2,076,447
7,583,570
1,883,061
15,353,848
28,329,692
42,570,159
19,831,207
350,906
650,243
216,878,069
280,280,584
1,991,733
4,128
1,995,861
65,915,937
28,676,942
9,187,990
3,333,656
5,982,615
113,097,140
1,597,643
49,823,364
51,421,007
36,865,824
4,708,661
41,574,485
Corporates
0
1
2
3,4
5,6
Unrated
Claims on banks with maturity less than 3 months
and denominated in foreign currency
1,2,3
4,5
6
Unrated
Banks - others
0
1
2,3
4,5
6
Unrated
Public sector enterprises
0
1
2,3
4,5
6
Unrated
75%
35%
Retail portfolio
2011
----------------- (Rupees in '000) ----------------Amount
Deduction
Net amount
outstanding
CRM
2,522
8,940
1
13,725,850
13,737,313
28,242,244
28,242,244
299
32,565,331
32,565,630
2,372,983
2,372,983
5,175,221
1,432,766
2,076,447
7,583,570
1,883,061
15,353,848
28,329,692
42,567,637
19,822,267
350,905
650,243
203,152,219
266,543,271
1,991,733
4,128
1,995,861
37,673,693
28,676,942
9,187,990
3,333,656
5,982,615
84,854,896
1,597,344
17,258,033
18,855,377
34,492,841
4,708,661
39,201,502
Equity investments
100%
150%
1,826,351
11,185,690
13,012,041
-
1,826,351
11,185,690
13,012,041
1,340,416
17,254,530
18,594,946
-
1,340,416
17,254,530
18,594,946
Past due loans secured against mortgage
of residential property:
- less than 20% provided
- greater than 20% provided
100%
50%
173,111
353,437
526,548
-
173,111
353,437
526,548
178,257
536,227
714,484
-
178,257
536,227
714,484
Past due loans - others
- Less than 20% provided
- Between 20% to 50% provided
- More than 50% provided
150%
100%
50%
5,531,360
8,171,304
3,488,318
17,190,982
22,805,050
10,425,110
671,100,068
5,903,702
7,707,316
3,463,203
17,074,221
21,378,291
8,032,224
731,772,565
- Listed
- Unlisted
Fixed assets
Others
100%
8,464,060
2,932,700
8,171,304
3,488,318
20,123,682
2,932,700
22,805,050
10,425,110
803,917,746 132,817,678
76,918,170
5,903,702
7,707,316
3,463,203
17,074,221
21,378,291
8,032,224
654,854,395
Credit Risk: Disclosures with respect to Credit Risk Mitigation for Standardized Approach
The Bank has adopted the Comprehensive Approach of Credit Risk Mitigation for the Banking Book. Under this approach, cash, lien on deposits, government
securities and eligible guarantees etc. are considered as eligible collateral. The Bank has in place detailed guidelines with respect to the valuation and
management of each of these types of collateral. Where the Bank’s exposure to an obligor is secured by eligible collateral, the Bank reduces its exposure for
the calculation of capital requirement by the realizable amount of the collateral, adjusted for any applicable haircuts.
No credit risk mitigation benefit is taken in the Trading Book.
For each asset class, the risk weights as specified by the SBP or corresponding to the SBP rating grades are applied to the net amount for the calculation of
Risk Weighted Assets.
44
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.
RISK MANAGEMENT
This section presents information about the Bank’s exposure to and its management and control of risks, in particular, the
primary risks associated with its use of financial instruments such as credit, market, liquidity, and operational risks.
Managing risk is one of the major challenges for the banking industry. The main goal is not to eliminate risk, but rather to be
proactive in identifying, assessing and managing risks to the organisation’s strategic advantage.
The Bank has an integrated risk management structure in place. The Board Risk Management Committee (BRMC) oversees the
entire risk management process of the Bank. The Risk and Credit Policy Group is responsible for the implementation of policies
as approved by the BoD / BRMC. The group is organized into the functions of Market and Treasury Risk, Commercial and
FIRMU Credit Policy, Consumer and Retail Credit, Credit Risk Management and Operational Risk and Basel II. Each risk
function is headed by a senior manager who reports directly to the Group Executive, Risk and Credit Policy. The role of the Risk
and Credit Policy Group includes:
44.1
-
Determining guidelines relating to the Bank’s appetite for risk.
-
Recommending risk management policies in accordance with the Basel II framework and international best practices.
-
Reviewing policies/ manuals and ensuring that these are in accordance with BoD / BRMC approved risk management
policies.
-
Developing systems and resources to review the key risk exposures of the Bank.
-
Approving credits and granting approval authority to qualified and experienced individuals.
-
Reviewing the adequacy of credit training across the Bank.
-
Organizing portfolio reviews focusing on quality assessment, risk profiles, industry concentrations, etc.
-
Setting systems to identify significant portfolio indicators, problem credits and level of provisioning required.
Credit risk
Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time
thereafter. This risk arises from the potential that a customer or counterparty’s willingness to meet an obligation or its ability to
meet such an obligation is impaired, resulting in an economic loss to the Bank.
The credit risk management process is driven by the Bank's Credit Policy, which provides policies and procedures in relation to
credit initiation, approval, documentation and disbursement, credit maintenance and remedial management.
Individual credit authorities are delegated to credit officers by the Board according to their seasoning/maturity. Approvals for
Corporate and Consumer loans are centralized, while approval authorities for Commercial and SME exposures are delegated to
a Regional level. All credit policy functions are centrally organized.
The Bank manages, limits and controls concentrations of credit risk to individual counterparties and groups, and to industries,
where appropriate. Concentrations of credit risk exist if clients are engaged in similar activities, or are located in the same
geographical region, or have comparable economic characteristics such that their ability to meet contractual obligations would
be similarly affected by changes in economic, political or other conditions. Limits are also applied to portfolios or sectors where
the Bank considers it appropriate to restrict credit risk concentrations, or to areas of higher risk, or to control the rate of portfolio
growth.
45
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.2
Segmental information
44.2.1 Segments by class of business
Gross advances
2012
Deposits
Contingencies and
commitments
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Chemical and pharmaceuticals
Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Cement
Sugar
Shoes and leather garments
Automobile and transportation equipment
Financial
Insurance
Electronics and electrical appliances
Production and transmission of energy
Paper and allied
Surgical and metal
Contractors
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Airlines
Cables
Construction
Containers and ports
Engineering
Glass and allied
Hotels
Infrastructure
Media
Polyester and fiber
Telecommunication
Individuals
Others
6,436,929
54,820,003
16,023,464
6,264,208
21,485,938
15,983,229
2,393,256
12,019,995
2,141,611
6,134,194
9,310,324
2,892,224
56,734,730
815,020
371,234
8,943,375
17,509,375
4,437,555
286,356
12,739,862
7,557,065
832,925
16,563,478
1,883,000
1,127,890
131,094
3,960,279
638,644
486,273
4,514,939
9,959,155
47,552,654
56,140,166
409,090,444
1.57%
13.40%
3.92%
1.53%
5.25%
3.91%
0.59%
2.94%
0.52%
1.50%
2.28%
0.00%
0.71%
13.87%
0.20%
0.09%
2.19%
4.28%
1.08%
0.07%
3.11%
1.85%
0.20%
4.05%
0.46%
0.28%
0.03%
0.97%
0.16%
0.12%
1.10%
2.43%
11.62%
13.72%
100.00%
46
15,784,908
37,837,882
1,754,995
2,632,554
2,923,552
2,048,785
2,916,842
5,347,923
3,903,157
6,265,499
13,075,579
14,416,808
2,644,787
20,191,121
990,948
2,052,536
28,960,618
41,656,054
7,160,535
1,926,353
11,108,262
5,413,479
79,424
10,765,408
762,599
2,093,081
648,509
3,610,021
5,652,867
594,501
195,858
10,557,710
351,027,689
82,934,674
699,935,518
2.25%
5.41%
0.25%
0.38%
0.42%
0.29%
0.42%
0.76%
0.56%
0.90%
1.87%
2.06%
0.38%
2.88%
0.14%
0.29%
4.14%
5.95%
1.02%
0.28%
1.59%
0.77%
0.01%
1.54%
0.11%
0.30%
0.09%
0.52%
0.81%
0.08%
0.03%
1.51%
50.15%
11.84%
100.00%
4,053,394
75,359
2,329,641
1,441,050
48,404
1,905,932
523,919
353,274
338,963
2,642,414
270,842,309
24,413
7,848,109
38,220,380
711,440
131,086
24,567,559
2,489,743
1,755,309
22,535
4,583,676
186,170
186,093
7,401,252
3,323,884
1,827,272
21,028
66,063
51,535
364
3,751,277
23,904,802
107,879,832
513,508,481
0.79%
0.01%
0.45%
0.28%
0.01%
0.37%
0.10%
0.07%
0.07%
0.51%
52.74%
0.00%
1.53%
7.44%
0.14%
0.03%
4.78%
0.48%
0.34%
0.00%
0.89%
0.04%
0.04%
1.44%
0.65%
0.36%
0.00%
0.01%
0.00%
0.01%
0.00%
0.73%
4.66%
21.03%
100.00%
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Gross advances
2011
Deposits
Contingencies and
commitments
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Chemical and pharmaceuticals
Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Cement
Sugar
Shoes and leather garments
Automobile and transportation equipment
Financial
Insurance
Electronics and electrical appliances
Production and transmission of energy
Paper and allied
Surgical and metal
Contractors
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Airlines
Cables
Construction
Containers and ports
Engineering
Glass and allied
Hotels
Infrastructure
Media
Polyester and fiber
Telecommunication
Individuals
Others
5,956,280
47,098,763
15,015,949
8,322,335
24,024,679
12,328,906
4,502,596
7,126,082
2,261,079
5,019,017
12,282,190
2,645,758
41,158,790
1,374,357
335,641
8,167,991
13,784,426
6,870,880
356,647
8,992,044
5,173,722
551,500
17,972,549
1,762,702
1,068,788
150,762
2,660,081
714,286
369,290
2,734,383
5,987,777
50,088,570
49,447,808
366,306,628
1.63%
12.86%
4.10%
2.27%
6.56%
3.37%
1.23%
1.95%
0.62%
1.37%
3.35%
0.72%
11.24%
0.38%
0.09%
2.23%
3.76%
1.88%
0.10%
2.45%
1.41%
0.15%
4.91%
0.48%
0.29%
0.04%
0.73%
0.19%
0.10%
0.75%
1.63%
13.67%
13.49%
100.00%
44.2.2 Segment by Sector
Gross advances
6,585,168
42,150,054
975,609
1,043,165
319,769
3,679,286
1,674,669
3,574,065
3,273,864
3,875,871
12,957,945
17,048,287
3,527,863
17,177,054
1,762,145
3,539,760
18,465,596
41,776,985
11,698,466
1,679,032
7,192,939
414,250
65,054
12,107,200
8,432,724
3,467,976
929,968
3,861,057
4,098,615
206,796
236,116
6,489,672
302,638,004
66,055,115
612,980,139
1.07%
6.88%
0.16%
0.17%
0.05%
0.60%
0.27%
0.58%
0.53%
0.63%
2.11%
2.78%
0.58%
2.80%
0.29%
0.58%
3.01%
6.82%
1.91%
0.27%
1.17%
0.07%
0.01%
1.98%
1.38%
0.57%
0.15%
0.63%
0.67%
0.03%
0.04%
1.06%
49.37%
10.78%
100.00%
3,250,238
59,505
1,001,370
783,030
199,997
2,922,216
1,006,931
28,939
178,949
2,951,532
302,414,636
7,438
831,435
20,945,901
623,438
58,810
22,860,205
3,342,661
429,624
36,154
3,876,565
72,829
328,151
6,643,268
3,430,024
2,185,733
76,524
89,227
9,365
53,209
155,848
17,163,745
23,245,742
110,225,239
531,488,478
0.61%
0.01%
0.19%
0.15%
0.04%
0.55%
0.19%
0.01%
0.03%
0.55%
56.63%
0.00%
0.16%
3.92%
0.12%
0.01%
4.28%
0.63%
0.08%
0.01%
0.73%
0.01%
0.06%
1.24%
0.64%
0.41%
0.01%
0.02%
0.00%
0.01%
0.03%
3.21%
4.35%
21.12%
100.00%
2012
Deposits
Contingencies and
commitments
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Public / Government
Private
105,576,001
303,514,443
409,090,444
409,090,444
25.81%
74.19%
100.00%
Gross advances
54,372,750
7.77%
645,562,768
92.23%
699,935,518
100.00%
699,935,518
2011
Deposits
117,283,647
396,224,834
513,508,481
64,423,780
548,556,359
612,980,139
70,842,557
460,645,921
531,488,478
22.84%
77.16%
100.00%
Contingencies and
commitments
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Public / Government
Private
62,708,253
303,598,375
366,306,628
17.12%
82.88%
100.00%
47
10.51%
89.49%
100.00%
13.27%
86.73%
100.00%
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.2.3 Details of non performing advances and specific provisions by class of business segment
2012
2011
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
------------------------------------- (Rupees in '000) ------------------------------------Chemical and pharmaceuticals
Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Sugar
Shoes and leather garments
Automobile and transportation equipment
Financial
Electronics and electrical appliances
Production and transmission of energy
Paper and allied
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Construction
Engineering
Glass and allied
Hotels
Polyester and fiber
Individuals
Others
312,746
1,313,254
5,499,634
1,126,543
5,710,107
3,640,690
160,424
242,670
264,702
2,231,888
201,492
6,480,916
397,813
1,667,571
72,148
126,960
989,530
4,085,882
550,061
4,205
485,993
2,362,823
14,698,530
4,720,414
57,346,996
256,259
954,821
4,961,322
877,388
4,409,573
3,072,455
41,956
242,670
191,313
1,629,271
201,492
3,079,402
305,470
1,483,440
67,811
126,960
884,938
3,323,093
524,271
4,205
145,826
2,106,295
11,548,661
3,024,918
43,463,810
219,819
1,492,362
4,641,798
1,118,563
6,233,524
3,275,453
243,298
259,343
337,798
2,298,561
256,359
2,433,707
359,645
1,629,270
66,459
127,325
1,247,467
4,178,163
668,542
16,822
485,993
1,796,629
14,267,464
3,462,460
51,116,824
202,894
982,720
4,405,456
942,390
3,914,856
2,531,570
63,255
211,908
215,613
1,813,987
248,387
2,371,643
262,131
1,478,940
66,459
127,325
1,177,347
2,213,976
585,544
16,822
123,993
1,760,954
11,607,632
2,624,924
39,950,726
44.2.4 Details of non performing advances and specific provision by sector
2012
2011
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
------------------------------------- (Rupees in '000) ------------------------------------Public / Government
Private
57,346,996
57,346,996
48
43,463,810
43,463,810
51,116,824
51,116,824
39,950,726
39,950,726
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.2.5 Geographical segment analysis
2012
Profit before
Total assets
Net assets
Contingencies
taxation
employed
employed
and commitments
---------------------------------------- (Rupees in '000) ---------------------------------------Pakistan operations
23,424,408
691,365,103
60,490,817
373,701,299
Middle East
United States of America
Karachi Export Processing Zone
3,401,778
184,364
18,377
3,604,519
27,028,927
213,579,340
3,782,679
696,218
218,058,237
909,423,340
28,462,965
1,850,136
359,908
30,673,009
91,163,826
139,676,024
3,832
127,326
139,807,182
513,508,481
2011
Profit before
Total assets
Net assets
Contingencies
taxation
employed
employed
and commitments
---------------------------------------- (Rupees in '000) ---------------------------------------Pakistan operations
21,392,145
625,357,250
54,271,871
410,039,278
Middle East
United States of America
Karachi Export Processing Zone
2,618,024
152,250,045
22,976,014
121,309,333
183,781
4,042,572
1,596,319
3,705
28,841
1,518,215
308,704
136,162
2,830,646
157,810,832
24,881,037
121,449,200
24,222,791
783,168,082
79,152,908
531,488,478
24,222,791
778,059,741
79,152,908
Total assets employed include intra group items of Rs.15,024.688 million (2011: Rs.5,108.341 million).
44.3
Market Risk
Market risk is the risk that the Bank may experience due to movements in market prices. It results from changes in
interest rates, exchange rates and equity prices as well as the correlations between them. Each of these
components of market risk include a general market risk and a specific aspect of market risk that originates in the
portfolio structure of a bank.
Measuring and controlling market risk is usually carried out at the portfolio level. However, certain controls are
applied, where necessary, to individual risk types, to particular books and to specific exposures. Controls are also
applied to prevent any undue risk concentrations in trading books, taking into account variations in price, volatility,
market depth and liquidity. These controls also include limits on exposure to individual market risk variables as well
as on concentrations of tenors, issuers etc.
Trading activities are centered in the Treasury and Capital Markets Group to facilitate clients as well as run
proprietary positions. The Bank is active in the cash and derivative markets for equity, interest rate and foreign
exchange.
The Market and Treasury Risk division performs market risk management activities. Within this division, the Market
Risk Management unit is responsible for the development and review of market risk policies and processes, and is
involved in research, financial modeling and testing / implementation of risk management systems, while Treasury
Middle Office is responsible for implementation and monitoring of market risk and other policies, escalation of any
deviation to senior management, and MIS reporting.
The scope of market risk management is as follows:
-
To keep the market risk exposure within the Bank’s risk appetite as assigned by the BoD and the BRMC.
-
To develop, review and upgrade procedures for the effective implementation of market risk management
policies approved by the BoD and BRMC.
49
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
-
To review new product proposals and propose / recommend / approve procedures for the management of their
market risk. Various limits are assigned to different businesses on a product/portfolio basis. The products are
approved through product programs, where risks are identified and limits and parameters are set. Any
transactions / products falling outside these product programs are approved through separate transaction /
product memos.
-
To maintain a comprehensive database for performing risk analysis, stress testing and scenario analysis. Stress
testing activities are performed on a quarterly basis on both the Banking and Trading books.
44.3.1 Foreign Exchange Risk
Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahraini Dinar
Qatari Riyal
Other Currencies
2012
Off - balance
Net currency
sheet items
exposure
----------------------------- (Rupees in '000) ----------------------------Assets
Liabilities
707,653,601
74,957,934
2,784,651
28,985
2,370,763
65,799,339
10,596,389
10,103,904
20,103,086
894,398,652
600,836,773
58,019,573
10,582,621
8,641
5,803,173
80,477,565
16,424,191
11,665,772
19,416,517
803,234,826
(16,752,154)
(16,581,683)
7,745,156
(55,545)
3,414,984
14,074,639
5,828,363
2,622,384
(296,144)
-
90,064,674
356,678
(52,814)
(35,201)
(17,426)
(603,587)
561
1,060,516
390,425
91,163,826
2011
Off - balance
Net currency
sheet items
exposure
----------------------------- (Rupees in '000) ----------------------------Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahraini Dinar
Qatari Riyal
Other Currencies
Assets
Liabilities
606,852,073
63,231,377
2,630,855
57,624
1,561,980
68,550,969
9,313,278
12,798,773
13,062,812
778,059,741
518,985,310
43,904,874
10,811,280
9,086
5,244,854
83,187,074
12,733,254
13,011,881
11,019,220
698,906,833
(5,730,401)
(21,335,735)
7,953,477
(44,050)
3,497,165
9,218,891
3,956,376
2,383,686
100,591
-
82,136,362
(2,009,232)
(226,948)
4,488
(185,709)
(5,417,214)
536,400
2,170,578
2,144,183
79,152,908
Foreign Exchange Risk is the risk that the Bank is exposed to due to changes in exchange rates. Limits are used to
monitor exposure in individual currencies and also on an overall basis to ensure compliance with the SBP’s Foreign
Exchange Exposure Limit.
The Bank is an active participant in the cash and derivatives markets for currencies and carries currency risk from
these trading activities, conducted primarily by the Treasury and Capital Markets Group. These trading exposures
are subject to monitoring through prescribed stress tests and sensitivity analysis.
The Bank's reporting currency is the Pakistan Rupee, but its assets, liabilities, income and expenses are
denominated in different currencies. From time to time, the Treasury and Capital Markets Group proactively hedges
foreign currency exposures, in accordance with SBP regulations and subject to pre-defined limits.
44.3.2 Equity position risk
Equity position risk arises due to changes in the prices of individual stocks or levels of equity indices. The Bank’s
equity book comprises of held for trading (HFT) and available for sale (AFS) portfolios. The objective of the HFT
portfolio is to make short-term capital gains, whilst the AFS portfolio is maintained with a medium-term view of both
capital gains and dividend income. Product program manuals have been developed to provide guidelines on the
objectives and policies, risks and mitigants, limits and controls for the equity portfolios of the Bank.
50
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.3.3
Yield / interest rate risk
Interest rate risk is the uncertainty resulting from changes in interest rates, including changes in the shape of yield curves. Interest rate risk is inherent in many of the Bank's businesses and arises from mismatches between the contractual maturities or the re-pricing of on
and off balance sheet assets and liabilities or shifts in the yield curve. The interest rate sensitivity profile is prepared on a quarterly basis based on the re-pricing or contractual maturities of assets and liabilities.
The objective of yield / interest rate risk management is to minimize adverse impacts on the Bank's profitability. Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testing and taking appropriate actions where
required.
44.3.4
Mismatch of interest rate sensitive assets and liabilities
Effective yield /
interest rate
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Performing
Non-performing
Operating fixed assets - Ijarah assets
Other assets
%
0.01%
1.15%
4.47%
10.64%
11.28%
Total
2012
Exposed to yield / interest rate risk
Over 6 months
Over 1 year to
Over 2 years
to 1 year
2 years
to 3 years
Non-interest
bearing
financial
instruments
------------------------------------------------------------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------------------------------------------------------------------Upto 1 month
Over 1 month
to 3 months
Over 3 months
to 6 months
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
94,081,133
15,234,326
21,953,458
349,590,182
351,743,448
12,620,354
982,463
14,195,337
860,400,701
7,678,267
9,332,780
9,560,360
13,254,989
3,965,289
24,406,682
4,610,064
66,670,000
2,658,245
110,866,917
291,449
10,518,705
15,436,261
48,795,884
29,125,351
2,616,760
86,402,866
5,901,546
868,051
27,898,633
68,896,796
4,697
108,727,889
170,356,400
11,740
198,740,111
44,906,427
13,203
116,199,694
17,404,996
35,633
130,965,791
9,647,954
240,480
20,698,588
10,997,012
199,776
26,633,049
13,734,893
476,934
63,007,711
7,159,346
36,284,697
8,639,624
11,256,384
12,620,354
14,195,337
147,886,787
7,600,633
67,214,445
699,935,518
9,319,264
17,349,710
801,419,570
45,064,760
277,035,551
322,100,311
15,429,182
47,559,818
9,319,264
72,308,264
1,373,975
66,793,711
68,167,686
910,937
29,967,947
30,878,884
3,665,820
3,665,820
3,735,711
3,735,711
885,805
5,000,845
5,886,650
3,549,786
16,056,911
19,606,697
1,556
1,556
7,600,633
250,117,648
17,349,710
275,067,991
On-balance sheet gap
58,981,131
(213,372,422)
126,431,847
48,032,008
100,086,907
17,032,768
22,897,338
57,121,061
16,678,000
11,254,828
Non financial net assets
32,182,695
Total net assets
91,163,826
8,059,417
(8,059,417)
12,490,616
(12,490,616)
37,234
(37,234)
(308,867)
119,658,061
(90,502,058)
1,000,000
66,822,438
(53,135,319)
8,072,150
(8,072,150)
38,986,790
(27,123,588)
2,444,083
(4,615,333)
4,418,466
(4,418,466)
37,234
(37,234)
12,599,533
(10,165,219)
Off-balance sheet Gap
28,847,136
14,687,119
11,863,202
Total Yield/Interest Risk Sensitivity Gap
87,828,267
(198,685,303)
(198,685,303)
10.11%-28.5%
0%
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Other liabilities
Off-balance sheet financial instruments
Interest Rate Derivatives - Long position
Interest Rate Derivatives - Short position
Cross Currency Swap - Long position
Cross Currency Swap - Short Position
FX Options - Long position
FX Options - Short position
Forward Sale of Govt. Securities
Foreign currency forward purchases
Foreign currency forward sales
Cumulative Yield/Interest Risk Sensitivity Gap
0%
10.46%
4.33%
11.91%
0%
1,000,000
(1,000,000)
1,249,300
(77,932)
-
-
263,064
1,171,368
-
-
138,295,049
48,295,072
101,258,275
17,032,768
22,897,338
57,121,061
17,540,383
11,254,828
(127,181,204)
(60,390,254)
(12,095,182)
89,163,093
106,195,861
129,093,199
186,214,260
203,754,643
215,009,471
87,828,267
Yield risk is the risk of decline in earnings due to adverse movement of the yield curve.
Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates.
51
291,449
(291,449)
-
3,323,885
(2,152,635)
(308,867)
-
(127,181,204)
862,383
-
-
-
-
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
Effective yield /
interest rate
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Performing
Non-performing
Operating fixed assets - Ijarah assets
Other assets
Total
Upto 1 month
%
0.02%
1.03%
6.04%
11.82%
12.10%
Over 1 month
to 3 months
Over 3 months
to 6 months
2011
Exposed to yield / interest rate risk
Over 6 months
Over 1 year to
Over 2 years
to 1 year
2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
Non-interest
bearing
financial
instruments
-------------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------
86,216,168
14,385,823
11,890,082
294,410,661
314,181,110
11,166,098
441,220
13,543,509
746,234,671
1,432,766
11,156,988
1,969,092
7,827,998
5,346,026
21,992,156
899,457
3,327,692
47,859,174
239,052
133,423,335
5,194,260
1,182,745
32,574,639
20,193,272
1,495,740
84,783,402
2,329,378
1,008,220
22,667,342
63,913,126
11,273
86,311,243
153,524,346
22,546
180,885,074
39,484,003
33,819
91,604,145
13,392,249
67,638
147,122,274
6,319,428
135,276
11,648,964
9,787,003
135,276
11,105,024
8,853,192
35,392
41,463,223
3,152,668
23,345,940
15,755,095
17,250,835
11,166,098
13,543,509
135,497,949
5,879,043
49,953,251
612,980,139
11,317,080
17,796,644
697,926,157
30,764,811
252,532,609
283,297,420
10,009,431
60,620,583
8,652,640
79,282,654
4,504,431
22,585,676
27,090,107
255,614
32,976,633
665,040
33,897,287
261,447
5,940,342
1,999,400
8,201,189
405,482
2,545,046
2,950,528
1,265,795
7,499,243
8,765,038
2,486,240
6,453,061
8,939,301
4,303
4,303
5,879,043
221,822,643
17,796,644
245,498,330
On-balance sheet gap
48,308,514
(196,986,177)
101,602,420
64,514,038
113,224,987
3,447,775
8,154,496
32,698,185
14,406,639
17,246,532
Non financial net assets
30,844,394
Total net assets
79,152,908
1,000,000
5,255,285
(5,255,285)
61,759,877
(48,935,976)
2,149,300
(3,385,550)
24,924,238
(24,924,238)
45,893,954
(29,313,441)
329,801
(1,579,801)
4,862,316
(4,862,316)
27,202,572
(15,894,724)
10%-23%
0%
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Other liabilities
Off-balance sheet financial instruments
Interest Rate Derivatives - Long position
Interest Rate Derivatives - Short position
Cross Currency Swap - Long position
Cross Currency Swap - Short Position
Foreign currency forward purchases
Foreign currency forward sales
0%
12.23%
4.29%
12.80%
0%
8,444,451
(8,444,451)
35,041,839
(35,041,839)
136,641,383
(94,144,141)
250,000
1,784,980
-
1,000,000
(1,000,000)
-
-
-
3,715,350
(2,479,100)
-
-
(110,000,381)
-
Off-balance sheet Gap
42,497,242
13,823,901
15,344,263
10,057,848
2,034,980
Total Yield/Interest Risk Sensitivity Gap
90,805,756
(183,162,276)
116,946,683
74,571,886
115,259,967
3,447,775
8,154,496
32,698,185
15,642,889
17,246,532
(110,000,381)
(183,162,276)
(66,215,593)
8,356,293
123,616,260
127,064,035
135,218,531
167,916,716
183,559,605
200,806,137
90,805,756
Cumulative Yield/Interest Risk Sensitivity Gap
Yield risk is the risk of decline in earnings due to adverse movement of the yield curve.
Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates.
52
-
-
-
1,236,250
-
-
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.4
Liquidity risk
Liquidity risk is the risk that the Bank may be unable to meet its obligations or to fund increases in assets as they fall due without incurring unacceptable cost or losses.
The Assets and Liability Management Committee (ALCO) of the Bank has the responsibility for the formulation of overall strategy and oversight of liquidity management and meets on a monthly basis or more frequently, if
required.
The Bank’s approach to liquidity management is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking sustained damage to business franchises. A centralized approach is adopted, based on an integrated framework incorporating an assessment of all material known and expected cash flows and the availability of
collateral which could be used to secure additional funding if required. The framework entails careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These
encompass both normal and stressed market conditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank’s business.
44.4.1 Maturities of assets and liabilities - based on working prepared by the Assets and Liabilities Management Committee (ALCO) of the Bank
Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using an Exponentially Weighted Moving
Average model based on the last seven years' data. The maturity profile of certain non-contractual assets and liabilities which are related to specific assets and liabilities follows the maturity profile of the underlying asset or
liability. The maturity profile of other non-contractual assets and liabilities is expected to follow historical patterns of behavior. The methodology and the assumptions have been approved by ALCO.
2012
Over 1 month Over 3 months Over 6 months Over 1 year to
Over 2 years
Over 3 years
Over 5 years
Over 10 years
2 years
to 3 months
to 6 months
to 1 year
to 3 years
to 5 years
to 10 years
--------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------
Total
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances - Performing
Advances - Non-performing
Operating fixed assets
Deferred tax assets
Other assets
Upto 1 month
94,081,133
15,234,326
21,953,458
349,590,182
350,500,822
13,862,980
24,431,069
24,744,682
894,398,652
44,508,137
15,234,326
10,457,978
9,108,767
66,836,808
115,690
3,157,044
149,418,750
1,839,196
4,072,539
19,992,107
94,200,314
261,742
5,224,331
125,590,229
1,787,171
1,876,956
52,591,389
33,888,199
410,286
5,215,744
95,769,745
7,600,633
67,214,445
699,935,518
9,319,264
277,970
18,886,996
803,234,826
2,686,303
45,238,799
105,450,285
4,735,039
158,110,426
1,777,680
10,064,403
78,645,008
2,333,268
1,730,498
94,550,857
1,733,605
6,764,183
51,243,330
851,451
60,592,569
31,039,372
35,177,176
2,597,694
2,362,578
127,380,627
23,688,147
201,613
6,808,176
163,038,835
3,584,393
2,015,356
21,787,647
15,109,357
776,065
584,090
43,856,908
2,763,819
300,000
20,105,452
11,056,364
762,779
342,734
35,331,148
4,394,916
50,940,751
56,526,025
3,029,062
1,272,242
116,162,996
8,053,205
30,970,097
46,232,261
2,123,639
925,044
88,304,246
24,552,602
868,051
16,713,345
2,963,347
13,862,980
16,750,193
1,215,277
76,925,795
344,291
40,912,786
667,728
(222,750)
638,154
42,340,209
493,639
31,639,622
2,400
313,028
453,414
32,902,103
864,494
47,517,234
4,800
313,028
907,610
49,607,166
2,282,200
94,966,619
5,977,200
2,562,118
105,788,137
201,761,550
5,723,544
207,485,094
1,516,699
2,429,045
66,555,830
(17,483,891)
(130,559,299)
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loan
Deferred tax liability
Other liabilities
Net assets
91,163,826
(8,691,676)
Represented by:
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assets
12,241,798
29,044,219
36,341,135
13,536,674
91,163,826
53
1,403,045
1,162,436
47,799,084
333,868
(125,336)
1,285,168
51,858,265
111,180,570
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
2011
Over 1 month Over 3 months Over 6 months Over 1 year to
Over 2 years
Over 3 years
Over 5 years
Over 10 years
to 3 months
to 6 months
to 1 year
2 years
to 3 years
to 5 years
to 10 years
--------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------
Total
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances - Performing
Advances - Non-performing
Operating fixed assets
Deferred tax assets
Other assets
Upto 1 month
86,216,168
14,385,823
11,890,082
294,410,661
314,187,793
11,159,415
22,981,878
1,991,185
20,836,736
778,059,741
38,372,814
12,383,083
1,697,544
3,759,283
79,513,374
51,186
3,095,390
138,872,674
2,872,540
1,673,024
5,708,314
15,565,305
73,674,288
109,565
3,101,264
102,704,300
1,670,114
329,716
2,817,164
34,799,292
33,307,299
175,602
11,384,502
84,483,689
2,427,859
182,579
141,208,392
30,066,377
260,857
661,884
2,395,737
177,203,685
3,347,917
176,260
18,601,489
9,323,136
789,783
743,928
316,738
33,299,251
2,582,483
300,000
9,808,205
14,824,609
702,065
292,687
81,390
28,591,439
4,105,661
32,974,425
21,969,319
1,981,500
292,686
61,323,591
7,528,468
906,847
20,467,327
34,503,506
2,170,025
(28,019)
65,548,154
23,308,312
101,374
17,226,943
17,005,885
11,159,415
16,741,295
489,734
86,032,958
5,879,043
49,953,251
612,980,139
11,317,080
18,777,320
698,906,833
2,029,249
30,764,823
82,511,233
7,638,192
122,943,497
1,392,601
10,009,418
75,012,058
998,908
1,217,096
88,630,081
1,358,074
4,504,430
41,006,147
1,823,123
48,691,774
1,099,119
255,614
50,553,911
998,908
1,460,333
54,367,885
261,447
36,242,696
2,667,136
390,927
39,562,206
405,483
26,124,728
667,728
276,201
27,474,140
1,265,796
54,323,789
4,800
422,512
56,016,897
2,486,240
69,865,214
5,979,600
1,424,299
79,755,353
177,340,363
4,124,637
181,465,000
79,152,908
15,929,177
14,074,219
35,791,915
122,835,800
(6,262,955)
1,117,299
5,306,694
(14,207,199)
(95,432,042)
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loan
Other liabilities
Net assets
Represented by:
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assets
12,241,798
24,847,019
33,534,116
8,529,975
79,152,908
54
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.4.2 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Bank
The maturity profile presented below has been prepared as required by IAS on the basis of contractual maturities, except for products that do not have a contractual maturity which are shown in the first bucket.
2012
Over 3
Over 6
Over 1 year
Over 2 years
Over 3 years
Over 5 years Over 10 years
months to 6
months to 1
to 2 years
to 3 years
to 5 years
to 10 years
months
year
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Total
Upto 1 month
Over 1 month
to 3 months
94,081,133
15,234,326
21,953,458
349,590,182
364,363,802
24,431,069
24,744,682
894,398,652
87,702,007
15,234,326
10,457,978
16,101,184
94,305,072
115,690
22,513,778
246,430,035
4,072,539
19,493,818
66,732,050
261,742
579,382
91,139,531
1,876,956
52,591,389
33,888,199
410,286
186,821
88,953,651
2,362,578
120,886,498
23,688,147
201,613
674,313
147,813,149
2,015,356
21,787,647
15,109,357
776,065
427,216
40,115,641
300,000
20,105,453
11,056,364
762,779
216,787
32,441,383
50,940,751
56,526,025
3,029,062
146,385
110,642,223
30,970,097
46,232,261
2,123,639
79,325,997
6,379,126
868,051
16,713,345
16,826,327
16,750,193
57,537,042
7,600,633
67,214,445
699,935,518
9,319,264
277,970
18,886,996
803,234,826
91,163,826
7,600,633
45,238,799
532,978,155
1,252,110
13,411,854
600,481,551
(354,051,516)
10,064,403
62,145,347
2,333,268
924,314
75,467,332
15,672,199
6,764,183
34,979,709
58,787
41,802,679
47,150,972
1,162,436
24,433,228
333,868
(438,363)
645,484
26,136,653
121,676,496
344,291
8,384,954
667,728
(535,777)
24,838
8,886,034
31,229,607
493,639
6,664,369
2,400
7,160,408
25,280,975
864,494
7,887,757
4,800
209,230
8,966,281
101,675,942
2,282,200
22,461,999
5,977,200
1,296,275
32,017,674
47,308,323
2,316,214
2,316,214
55,220,828
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Deferred tax asset
Other assets
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Deferred tax liability - net
Other liabilities
Net assets
Represented by:
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assets
12,241,798
29,044,219
36,341,135
13,536,674
91,163,826
55
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
2011
Over 3
Over 6
Over 1 year
Over 2 years
Over 3 years
Over 5 years Over 10 years
months to 6
months to 1
to 2 years
to 3 years
to 5 years
to 10 years
months
year
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
Total
Upto 1 month
Over 1 month
to 3 months
86,216,168
14,385,823
11,890,082
294,410,661
325,347,208
22,981,878
1,991,185
20,836,736
778,059,741
79,883,635
12,383,083
1,697,544
11,746,849
111,693,705
51,186
1,170,747
18,593,943
237,220,692
1,153,448
1,673,024
5,708,314
15,178,523
41,493,957
109,565
117,811
65,434,642
329,716
2,817,164
34,799,292
33,307,299
175,602
1,382,285
72,811,358
182,579
133,607,608
30,066,377
260,857
369,197
398,865
164,885,483
176,260
18,601,489
9,323,136
789,783
451,241
316,738
29,658,647
300,000
9,808,205
14,824,609
702,065
16,295
25,651,174
32,974,425
21,969,319
1,981,500
56,925,244
906,847
20,467,327
34,503,506
2,170,025
10,799
58,058,504
5,179,085
101,374
17,226,943
28,165,300
16,741,295
67,413,997
5,879,043
49,953,251
612,980,139
11,317,080
18,777,320
698,906,833
79,152,908
5,879,043
30,764,823
456,762,225
14,166,773
507,572,864
(270,352,172)
10,009,418
60,601,537
998,908
636,240
72,246,103
(6,811,461)
4,504,430
26,799,323
234,468
31,538,221
41,273,137
255,614
30,142,628
998,908
959,097
32,356,247
132,529,236
261,447
7,827,113
2,667,136
24,775
10,780,471
18,878,176
405,483
4,309,208
667,728
5,382,419
20,268,755
1,265,796
19,705,683
4,800
2,672
20,978,951
35,946,293
2,486,240
6,832,422
5,979,600
678,345
15,976,607
42,081,897
2,074,950
2,074,950
65,339,047
Assets
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Deferred tax asset
Other assets
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Other liabilities
Net assets
Represented by:
Share capital
Reserves
Unappropriated profit
Surplus on revaluation of assets
12,241,798
24,847,019
33,534,116
8,529,975
79,152,908
56
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
44.5
Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
The Operational Risk & Basel II Division is primarily responsible for the oversight of operational risk management across the Bank. The
operational risk management framework of the Bank is governed by the Operational Risk Management Policy and Procedures, while the
implementation is supported by an operational risk management system and designated operational risk coordinators within different
units across the bank. The framework is in line with international best practices, flexible enough to implement in stages and permits the
overall approach to evolve in response to organizational learning and future requirements.
Loss data, collected through a well defined program, is evaluated and processes are reviewed for improvements in mitigation
techniques. Periodic workshops are conducted for Risk & Control Self Assessment and key risk exposures are identified and assessed
against existing controls to evaluate improvement opportunities. Key Risk Indicators are also defined for monitoring of risk exposures.
Business Continuity Plans have been implemented across the bank, clearly defining the roles and responsibilities of respective
stakeholders, and covering recovery strategy, IT and structural backups, scenario and impact analyses and testing directives. The
outsourcing policy has also been augmented to address risks associated with such arrangements.
45.
ISLAMIC BANKING BUSINESS
The Bank operates 19 (2011: 14) Islamic Banking Branches and 15 (2011: 15) Islamic Banking windows.
BSD Circular Letter No. 03 dated January 22, 2013 requires all Islamic Banks and Banks with Islamic banking Branches to present all
financing, advances for assets under Islamic modes of financing and any other related items pertaining to Islamic modes of financing
under the caption "Islamic Financing and Related Assets" in the Statement of Financial Position. Previously, advances for assets under
Islamic modes of financing were reported under "Other Assets" and Ijarah Assets were reported under "Operating Fixed Assets". This
change in presentation is effective from December 31, 2012 and accordingly, the Bank has presented the Statement of Financial
Position of Islamic Banking branches as per the revised regulations.
The statement of financial position of the Bank's Islamic Banking Branches as at December 31, 2012 is as follows:
Note
ASSETS
Cash and balances with treasury banks
Balances with other banks
Due from financial institutions
Investments
Islamic financing and related assets
Operating fixed assets
Due from Head Office
Other assets
Total Assets
45.1
LIABILITIES
Bills payable
Due to financial institutions
Deposits and other accounts
Current accounts
Saving accounts
Term deposits
Deposits from financial institutions - remunerative
Due to Head Office
Other liabilities
NET ASSETS
REPRESENTED BY
Islamic Banking Fund
Accumulated losses
Surplus on revaluation of assets
57
2012
2011
--------- (Rupees in '000) --------748,333
1,293,290
8,036,026
3,118,266
100,250
173,481
13,469,646
520,737
2,185,282
5,006,664
1,128,458
62,292
209,828
9,113,261
960
-
960
-
1,863,420
2,533,628
3,141,108
4,956,027
12,494,183
272,971
162,915
12,931,029
538,617
1,453,763
1,233,772
1,652,628
2,841,225
7,181,388
1,339,874
105,099
8,627,321
485,940
681,000
(194,579)
486,421
681,000
(199,658)
481,342
52,196
538,617
4,598
485,940
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
The profit and loss account of the Bank's Islamic Banking Branches for the year ended December 31, 2012 is as follows:
2012
2011
--------- (Rupees in '000) --------Return earned
Return expensed
1,266,785
865,577
401,208
Provision against loans and advances - net
Reversal for diminution in value of investments - net
Charge / (reversal) against assets given on Ijarah
Net return after provisions
Other Income
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Other income
Total other income
Other Expenses
Administrative expenses
Other provisions - net
Total other expenses
Net profit for the year
Accumulated losses brought forward
Accumulated losses carried forward
Remuneration to Shariah Advisor
45.1
Advances
Advances and receivables against Ijarah
Advances for Diminishing Musharaka
Advances for Murabaha
Provision against advances for Murabaha
Profit receivable against financings
45.2
7,880
(37,216)
12,626
(16,710)
417,918
21,982
(27,384)
(5,184)
(10,586)
280,932
12,124
60,432
34,504
860
14,906
122,826
540,744
8,755
29,586
331
5,694
44,366
325,298
516,659
19,006
535,665
5,079
304,458
17,498
321,956
3,342
(199,658)
(194,579)
(203,000)
(199,658)
2,329
Islamic financing and related assets
Financings
Murabaha
Ijarah
Musharaka
Diminishing Musharaka
Salam
Provision against financings
Charity Fund
Opening balance
Addition during the year
Payments during the year
Closing balance
58
885,293
614,947
270,346
2,482
1,394,021
982,463
55,556
192,924
347,171
(29,864)
2,942,271
355,909
441,220
111,111
67,051
(21,982)
953,309
171,780
17,531
(17,498)
171,813
4,182
3,118,266
143,784
11,080
31,039
(17,498)
168,405
6,744
1,128,458
8,967
959
(3,450)
6,476
11,792
3,825
(6,650)
8,967
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2012
45.3
Disclosures for profit and loss distribution and pool management
UBL Ameen, the Mudarib, maintains one pool which accepts deposits on the basis of Mudaraba from depositors (Rabbulmaal). Pool
funds are in turn invested in Islamic modes of financing and investments including Murabaha, Ijarah, Diminishing Musharaka,
Musharaka, Sukuk and Islamic mutual funds. The profit earned on the pool is therefore susceptible to the same market and credit risks
as discussed in note 44 to the financial statements.
The net return on the pool is arrived at after deduction of direct costs from gross return earned on the pool. From the net return, profit is
paid to the Mudarib in the ratio of the Mudarib's equity in the pool to the total pool. The balance represents the profit earned on
depositors' funds and on the balance in the charity fund.
The Mudarib's share is deducted from this profit to calculate the distributable profit. The allocation to various deposit categories,
including the charity fund, is determined by the amount invested in the pool as well as by the weightage assigned to the deposit
categories, including the charity fund.
The Mudarib's share for the year ended December 31, 2012 is Rs.401 million (50% of distributable profit). The amount distributed back
to depositors as Hiba is Rs.406 million (101% of Mudarib share). The profit rate earned on Islamic assets was 13.8% per annum and the
profit rate paid on average deposits was 8.2% per annum.
45.4
Deployment of Mudaraba based deposits by class of business
Chemical and pharmaceuticals
Agri business
Textile
Sugar
Automobile
Financial
Food industries
Engineering
Glass and allied
Hotel
Plastic
Individuals
Others
46.
2012
2011
--------- (Rupees in '000) --------349,539
963,200
366,141
124,311
3,641
7,865,874
189,329
379,302
274,667
24,802
67,560
173,323
372,603
11,154,292
155,810
54,573
17,520
4,879,050
156,062
9,545
11,080
2,655
242,808
606,019
6,135,122
NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE
The Board of Directors in its meeting held on February 24, 2013 has proposed a cash dividend in respect of 2012 of Rs. 3.5 per share
(2011: Rs.6.0 per share). In addition, the Directors have also announced a bonus issue of Nil (2011: Nil). These appropriations will be
approved in the forthcoming Annual General Meeting. The unconsolidated financial statements for the year ended December 31, 2012
do not include the effect of these appropriations which will be accounted for in the unconsolidated financial statements for the year
ending December 31, 2013.
47.
DATE OF AUTHORIZATION
These financial statements were authorized for issue on February 24, 2013 by the Board of Directors of the Bank.
48.
GENERAL
48.1
Comparatives
Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated financial statements for
the purposes of better presentation. Major reclassifications made are as follows:
48.2
-
Rs.193 million has been reclassified from cash and balances with treasury banks to balances with other banks.
-
Rs.2,354 million has been reclassified from balances with other banks in deposit accounts to lendings to financial institutions.
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
Atif R. Bokhari
President and
Chief Executive Officer
Rana Assad Amin
Director
Sir Mohammed Anwar Pervez, OBE, HPk
Deputy Chairman
59
Nahayan Mabarak Al Nahayan
Chairman
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
1)
Particulars of investments held in listed companies and Modarbas
Number of
Paid up
shares /
value per
Investee
certificates
share /
held
certificate
(Rupees)
Held for trading securities
Total paid up
value
Cost
(Rupees in '000)
Investments in ordinary shares
Attock Refinery Limited
D.G. Khan Cement Limited
Engro Corporation Limited
Engro Foods Limited
Fauji Fertilizer Bin Qasim Limited
Nishat Mills Limited
Pakistan Petroleum Limited
Pakistan State Oil Company Limited
Pakistan Telecommunication Company Limited
242,500
884,500
190,000
250,000
500,000
278,500
30,000
1,357,400
722,500
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
2,425
8,845
1,900
2,500
5,000
2,785
300
13,574
7,225
41,496
47,826
Agritech Limited
Aisha Steel Mills
Bank Al-Falah Limited
DP World
Engro Corporation Limited
Fatima Fertilizer Company Limited
Fauji Fertilizer Bin Qasim Limited
Fauji Fertilizer Company Limited
Hub Power Company Limited
International Steels Limited
Kot Addu Power Company Limited
Lucky Cement Limited
National Bank of Pakistan
National Refinery Limited
Nishat Chunian Power Limited
Pak Oilfields Limited
Pakistan Petroleum Limited
Pakistan Telecommunication Company Limited
14,087,108
4,787,000
11,833,500
6,926
4,700,000
10,208,000
12,794,706
9,467,400
18,588,000
2,700,000
12,753,419
2,500,000
12,650,000
233,500
25,139,248
41,000
3,630,000
4,150,000
10.00
10.00
10.00
1,943.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
140,871
47,870
118,335
13,457
47,000
102,080
127,947
94,674
185,880
27,000
127,534
25,000
126,500
2,335
251,392
410
36,300
41,500
493,049
52,444
193,224
17,494
490,687
261,280
495,938
1,069,065
759,243
37,989
565,638
343,515
594,576
54,150
420,508
17,130
573,779
98,047
6,537,756
Investments in preference shares
Masood Textile Mills Limited
JSC Alliance Bank
11,000,000
95,720
10.00
4,415
110,000
312,057
110,000
312,057
422,057
110,450
114,075
114,075
18,829
23,473
18,762
17,939
5,268
311,769
12,927
498,289
Available for sale securities
Investments in ordinary shares
Investments in units of mutual funds
Meezan Islamic Income Fund
2,209,003
50.00
Annexure 'A' as referred to in Note 9.10 of Unconsolidated Financial Statements
2)
Particulars of investments held in unlisted companies
Investee
Number of Breakup-up
Percentage
value per
shares /
of holding
share
certificates
(%)
held
Rupees
Paid up
value per
share
Cost
Rupees
(Rupees '000)
Based on
audited
accounts as at
Name of Chief
Executive
Shareholding more than 10%
Pakistan Agricultural Storage &
Services Corporation Limited
18.3%
5,500
(141,148)
1,000
5,500
31-Mar-12
Maj Gen M. Tauqeer
Ahmad
World Bridge Connect Inc.
18.1%
1,979,295
-
-
77,606
-
Cinepax Limited
14.6%
5,037,200
7
10
50,372
30-Jun-11
Arif Baigmohamed
First Women Bank Limited
7.1%
7,698,441
16
10
21,100
31-Dec-11
Ms Shafqat Sultana
National Institutional Facilitation
Technologies (Pvt.) Limited
8.4%
914,093
69
10
1,527
30-Jun-12
M. M. Khan
National Investment Trust Limited
8.3%
79,200
14,027
100
100
30-Jun-12
Wazir Ali Khoja
News-VIS Credit Information
Services (Pvt.) Limited
4.7%
(2)
10
325
30-Jun-11
Faheem Ahmad
31-Dec-11
Mr.Salman Akhtar &
Kewan Khawaja
(Co Chief Executive)
Not available
Shareholding upto 10%
Techlogix International Limited
Kay Textile Mills Limited
4.4%
Not
available
32,500
4,455,829
4
0
377,800
-
-
3,975,003
8
10
26,950
31-Dec-11
Ihsan-Ul-Haq Khan
336,201
16,022
2,905
31-Dec-11
Gottfried Leibbrandt
0
31-Dec-11
Ajay Banga
SME Bank Limited
1.7%
SWIFT
0.0%
25
MasterCard Incorporated
0.0%
461
4,494
0
The Benefit Company B.S.C ©
0.0%
80
-
25,763
50,702
3,778 Not available
2,061
242,926
-
Not available
Abdul Wahid Janahi
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
3) Particulars of bonds
Investee
Terms of Redemption
Principal
Interest/Profit
Rate of Interest/Profit
Outstanding
Amount
(Rupees in '000)
Available for sale securities
Government of Pakistan Sukuk
Government of Pakistan Ijarah Sukuk - V
Maturity
Bi-annually
Cut off yield of 6M T-Bills
plus 0 bps
100,497
Government of Pakistan Ijarah Sukuk - VI
Maturity
Bi-annually
Cut off yield of 6M T-Bills
plus 0 bps
650,000
Government of Pakistan Ijarah Sukuk - VII
Maturity
Bi-annually
Cut off yield of 6M T-Bills
plus 0 bps
1,508,383
Government of Pakistan Ijarah Sukuk - IX
Maturity
Bi-annually
Government of Pakistan Ijarah Sukuk - X
Maturity
Bi-annually
Government of Pakistan Ijarah Sukuk - XI
Maturity
Bi-annually
Government of Pakistan Ijarah Sukuk - XII
Maturity
Bi-annually
Cut off yield of 6M T-Bills
plus 10 bps
Cut off yield of 6M T-Bills
plus 10 bps
Cut off yield of 6M T-Bills
plus 10 bps
Cut off yield of 6M T-Bills
plus 10 bps
2,785,000
3,000,000
500,000
500,000
9,043,880
Government of Pakistan - Eurobonds
Islamic Republic of Pakistan - 2017 - Eurobond
Islamic Republic of Pakistan - 2016 - Eurobond
At Maturity
At Maturity
Bi-annually
Bi-annually
6.875%
7.125%
8,027,785
1,438,579
9,466,364
DEWA - AL IJARA FRN 2013
At Maturity
Semi Annually
6M EIBOR + 125bps
7,934,895
Tamweel Sukuk FRN 2013
At Maturity
Quarterly
3M EIBOR + 225bps
3,967,453
Bank of Bahrain and Kuwait Bond - 2015
At Maturity
Semi Annually
4.500%
195,448
IPIC GMTN Ltd - 2020
At Maturity
Semi Annually
5.000%
78,797
DUBAI GOVT.-2015 EMTN
At Maturity
Semi Annually
6.700%
403,898
State of Qatar 2030
At Maturity
Semi Annually
9.750%
2,561,773
DEWA-2016
At Maturity
Semi Annually
6.375%
194,499
EMAAR - 2016
At Maturity
Semi Annually
8.500%
88,995
Qatar DIAR Finance QSC -2020
At Maturity
Semi Annually
5.000%
243,669
Republic of Srilanka - 2020
At Maturity
Semi Annually
6.250%
678,734
MDC-GMTN B.V. (MUBADALA 2021)
At Maturity
Semi Annually
5.500%
203,899
Socialist Republic of Vietnam - 2020
At Maturity
Semi Annually
6.750%
297,377
Government of Dubai - 2020
At Maturity
Semi Annually
7.750%
1,838,101
Kingdom of Bahrain - 2020
At Maturity
Semi Annually
5.500%
279,076
Foreign bonds
18,966,614
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
3) Particulars of bonds
Investee
Terms of Redemption
Principal
Interest/Profit
At Maturity
Half Yearly
Rate of Interest/Profit
Outstanding
Amount
Held to maturity securities
Government of Pakistan Sukuk
Government of Pakistan Sukuk - VII
Cut off yield of 6M T-Bills
plus 0 bps
300,000
300,000
Government of Pakistan - Guaranteed Bonds
WAPDA Bonds - Sukuk II
At Maturity
Half Yearly
6M KIBOR minus 25bps
42,654
42,654
Sukuks
Security Leasing Corporation
Monthly
Nil
B.R.R Guardian Modaraba
Monthly
Monthly
Quarterly
Quarterly
Half Yearly
Half Yearly
Monthly
Monthly
Half Yearly
Half Yearly
K.S. Sulemanji - Diminishing Musharika
Sitara Energy Limited
Sitara Peroxide Limited
Pakistan International Airlines Limited
Nil
Deferred interest
instalment @ 1 month
KIBOR
Avg. of 3 months KIBOR
+ 140 bps
6 Month KIBOR plus
1.15%
1 Months KIBOR plus
1%
6 month KIBOR plus
1.75%
26,138
94,688
170,151
52,841
264,733
890,000
1,498,551
Foreign securities
JSC Alliance Bank - US $ Discount Bonds
At Maturity
Bi-annually
10.500%
210,727
JSC Alliance Bank - US $ Recovery Notes
At Maturity
N/A
N/A
307,517
518,244
4) Particulars of Debentures
Investee
Terms of Redemption
Principal
Interest
Rate of Interest
Outstanding
Amount
(Rupees in '000)
Public Sector
SDA - Cold Storage Haripur - I
SDA - Cold Storage Haripur - II
Overdue
Overdue
Overdue
Overdue
12.50%
12.00%
1,300
825
Private Sector
Effef Industries Limited
Effef Industries Limited
Khyber Textile Mills Limited
Morgah Valley Limited
Morgah Valley Limited
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
11.00%
14.00%
14.00%
11.00%
14.00%
1,017
379
395
316
160
4,392
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
5) Particulars of investments in term tinance certificates
No. of Certificates
Investee
held
Unlisted - available for sale
Pakistan International Airlines
Corporation TFC II
Engro Corporation Limited
Listed - available for sale
Allied Bank Limited TFC-II
Azgard Nine Limited
Azgard Nine Limited
Bank Al Falah Limited TFC III
Bank Al Habib Limited TFC II
Bank Al Habib Limited TFC III
Engro Corporation Limited TFC III
Faysal Bank Limited TFC II
Paid up value per
certificate
(Rupees)
Total Paid up
Outstanding
Amount
value
(Rupees in '000)
Name of Chief Executive
1,700
5,000
8,500
4,247
140,000
5,000
700,000
700,214
704,461
Muhammad Aliuddin Ansari
Capt. Nadeem Khan Yousufzai
53,000
60,000
12,944
26,200
44,766
46,000
22,562
46,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
265,000
300,000
300,000
131,000
223,830
230,000
112,810
230,000
268,594
97,615
64,720
87,642
225,479
229,946
112,926
229,816
1,316,738
Khalid A. Sherwani
Ahmed H. Shaikh
Ahmed H. Shaikh
Atif Bajwa
Abbas D. Habib
Abbas D. Habib
Muhammad Aliuddin Ansari
Naved A. Khan
410,567
5,000
2,052,835
2,042,700
Capt. Nadeem Khan Yousufzai
3,500
12,000
40,000
83,525
14
14
17
16
40
1
100,000
5,000
5,000
5,000
774,670
268,894
497,020
1,064,039
287,715
8,770,219
350,000
60,000
200,000
417,625
10,845
3,765
8,449
17,025
11,509
8,770
138,333
12,000
36,901
416,412
5,418
18,516
3,417
3,392
2,549
6,165
9,266
2,695,069
Teizoon Kisat
Shunaid Qureshi
Mohammad Khalid Ali
Mohammad Rafiquddin Mehkari
Mirza Muhammad Umer Baig
Noorul Amin Bachani
Khalid Shakil
Muhammad Arif
Nisar Ahmed
M. Iqtidar Pervaiz
Mr Imtiaz Ali Shah
129,397
12,297
75,000
46,000
999
30,000
5,000
5,000
5,000
5,000
5,000
5,000
646,985
61,485
375,000
110,000
4,995
150,000
645,834
61,115
375,000
147,338
2,492
45,000
1,276,779
Khalid A. Sherwani
Ahmed H. Shaikh
Mohsin Ali Nathani
Naved A. Khan
Muhammad Aftab Manzoor
Fawad Ahmad Mukhtar
Paid up value per
certificate
Total Paid up
value
362,000
29,250
32,833
(Rupees)
6,154,000
468,000
394,000
Unlisted - held to maturity
Pakistan International Airlines Corporation
Orix Leasing Pakistan Limited
Al Abbas Sugar Mills Limited
Security Leasing Corporation Limited
Askari Commercial Bank Limited - I
Al-Azhar Textile Mills Limited
Bachani Sugar Mills Limited
Bentonite (Pakistan) Limited
Blue Star Spinning Mills Limited
Cast-N-Link Products Limited
Regency Textile Limited
Tharparkar Sugar Mills
Listed - held to maturity
Allied Bank Limited TFC II
Azgard Nine
Standard Chartered Bank
Faysal Bank Limited
Soneri Bank Limited
Pak Arab Fertilizer (Private) Limited
6) Particulars of participation term certificates
Investee
Brother Steel Industries Limited
Morgah Valley Limited
Zamrock Fibers Glass Limited
No. of Certificates
held
17
16
12
Outstanding
Amount
(Rupees in '000)
2,144
437
2,358
4,939
Name of Chief Executive
Mian Yousuf Aziz
Air Marshal (Retd.) A. Rahim Kha
-
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
7) Quality of investments classified as available for sale (AFS)
Investee
Market Value Credit Rating
(Rupees in '000)
Investment in ordinary shares
Agritech Limited
Aisha Steel Mills Limited
164,397
D
50,982
A-
Bank Alfalah Limited
199,039
AA
Engro Corporation Limited
432,588
A
Fatima Fertilizer Company Limited
Fauji Fertilizer Bin Qasim Limited
Fauji Fertilizer Company Limited
Hub Power Company Limited
International Steels Limited
Kot Addu Power Company Limited
Lucky Cement Limited
National Bank of Pakistan
National Refinery Limited
Nishat Chunian Power Limited
Pak Oilfields Limited
Pakistan Petroleum Limited
Pakistan Telecommunication Company Limited
DP World
Investments in preference shares
Masood Textile Mills Limited
JSC Alliance Bank
Investments in units of mutual funds
Meezan Islamic Income Funds
269,491
493,748
1,109,011
840,921
32,670
629,891
378,850
624,784
49,432
A+
Not available
Not available
AA+
Not available
AA+
Not available
AAA
AAA
528,176
A
17,939 Not available
641,748 Not available
72,002 Not available
7,872
BBB6,543,541
110,000
312,057
422,057
Not available
Not available
112,196
112,196
A-(f)
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
7)
Quality of investments classified as available for sale (AFS)
Investee
Cost
Credit Rating
(Rupees in '000)
Investment in unlisted shares
Shareholding more than 10%
Pakistan Agricultural Storage & Services Corporation Limited
5,500
Not available
Cinepax Limited
50,372
Not available
World Bridge Connect Inc.
77,606
Not available
Shareholding upto 10%
First Women Bank Limited
National Institutional Facilitation Technologies (Pvt.) Limited
SME Bank Limited
Kay Textile Mills Limited
Techlogix International Limited
SWIFT
21,100
A-
1,526
Not available
BBB
26,950
3,778
50,703
Not available
2,905
Not available
National Investment Trust Limited
100
Not available
AM2-
News-VIS Credit Information Services (Pvt.) Limited
325
Not available
MasterCard Incorporated
The Benefit Company B.S.C ©
0
Not available
2,061
Not available
242,926
Particulars
Market Value
Credit Rating
(Rupees in '000)
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
123,647,225 Unrated - Govt Securities
66,020,408 Unrated - Govt Securities
189,667,633
Government of Pakistan Islamic Bonds
Government of Pakistan Ijarah Sukuk
9,119,005
B- (S&P)
9,119,005
Government of Pakistan - Euro bond
Islamic Republic of Pakistan - 2016 - Euro Bond
1,466,445
B- (S&P)
Islamic Republic of Pakistan - 2017 - Euro Bond
8,387,761
B- (S&P)
9,854,206
Foreign bonds
DEWA Sukuk - 2013
7,944,814
State of Qatar-2030
2,958,621
Government of Dubai 2015
444,785
Baa3
Aa2
Not available
Qatari Diar QSC 2020
284,431
Aa2
DEWA - 2016
218,567
Baa3
IPIC GMTN Limited -2020
TAMWEEL FRN 2013
90,407
3,965,073
Aa3
Baa3
Annexure 'A' as referred to in note 9.10 of Bank's unconsolidated financial statements
Investee
Market Value
Credit Rating
(Rupees in '000)
EMAAR 2016
101,260
B1
Bank of Bahrain and Kuwait 2015
200,721
Baa2
Republic of Srilanka - 2020
718,877
B1
MDC-GMTN B.V. (MUBADALA 2021)
230,840
Aa3
Socialist Republic of Vietnam - 2020
317,986
B2
Kingdom of Bahrain 2020
314,660
BBB
Government of Dubai 2020
2,033,708
Not available
19,824,750
Term finance cerificates
Listed
269,123
AA
Azgard Nine Limited
64,720
Azgard Nine Limited
Allied Bank Limited TFC-II
97,614
Not available
D
Bank Al Falah Limited TFC II
87,604
AA-
Bank Al Habib Limited TFC II
230,225
AA
Bank Al Habib Limited TFC III
257,061
AA
Engro Corporation Limited
109,857
A
235,346
AA-
Faysal Bank Limited
1,351,550
Unlisted
Pakistan International Airlines Corporation TFC II
Engro Corporation Limited TFC III
4,247
700,214
704,461
Not available
A
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Interest /
Markup
Others
Total
85,803
106,169
85,803
277,775
85,803
106,169
-
191,972
165,609
44,881
-
210,490
20,609
44,829
-
65,438
62,501
57,158
62,501
182,159
62,501
57,158
-
119,658
35202-2969902-7 Khawaja Mohyudd Din
35200-1448248-4 Bilal Ahmed
93,000
-
-
93,000
66,818
-
11,863
78,681
35202-0216677-3 Ilum-ud-din
62,180
-
-
62,180
-
-
13,392
13,392
27,005
32,824
6,136
65,966
27,005
32,824
-
59,829
30,386
17,830
-
48,216
-
17,830
-
17,830
30,355
17,618
-
47,972
-
2,364
-
2,364
26,767
14,680
-
41,447
873
3,280
-
4,153
38,299
-
-
38,299
-
-
1,745
1,745
Shaily Khandelwal
Manoj Kumar Agarwal
26,973
9,829
-
36,803
7,017
9,448
-
16,465
Samer D.Sobh
24,863
9,972
-
34,834
1,243
3,174
-
4,417
1 Commercial Reprsentation & Express
Services ( Corex Co.)
Saeed Hamad Saeed (UAE)
Ahmed Abdullah Zahran (UAE)
Khalil Hamood Salamah
(Jordanian)
2 Printing Services (Pvt) Limited
Misbahuddin Khan
F-42, Hub River Road, S.I.T.E, Karachi Anis Fatima
Saleemuddin
Fazal-E-Azeem
Zarina Begum
Masarrat Misbah
Farhat Haseeb
3 Genipo Company
Mohammad Ibrahim Ghanim
P.O. Box # # 4126, Abu Dhabi
(UAE)
George Porris (Greek)
4 Ammar Textiles Pvt. Ltd.
Bilal Ahmed
18th KM, Multan Road, Lahore
Samina Bilal
5 International Fabrication Co
236-A, New Muslim Town Lahore.
6 Al Noor Textile Ind. Factory
P.O. Box # 20888, Sharjah
Written off
Muhammad Yousaf Baig
Salim Abdul Rehman( UAE)
Farukh Rafiq(Pakistani)
Haseeb Arshad Chaudhry
(Pakistani)
Khalid Hussain
42301-8243975-3
42301-0993959-2
42201-9115584-7
42201-8514923-5
42201-0231331-2
42301-0983750-0
42301-0998356-2
M. Zaki Khan
Misbahuddin Khan
Fazal Illahi
Fazal-ur-Rehman
Fazal-ur-Rehman
Misbahuddin Khan
M. Haseeb Khan
7 Kashis Embriodery
191-A Upper Mall, Lahore
8 Kamyar Minaji
Kamyar Minaji
Apartment # 21 Bldg 39, Jebel Ali
Garden, Dubai
9 Waseem Ahmed Khan
Waseem Ahmed Khan
607, Mashriq Centre,Block-14,Gulshane-Iqbal, Karachi
35202-4424118-1 Sh. Muhammad Amin
10 Umer Khalid & Co.
Khanpur Road Rahim Yar Khan
11 Shaily Khandelwal & Manoj Kumar
Agarwal
P.O. Box # 1515, Dubai
12 Samer D.Sobh
2908, Oasis Tower,Sheikh Zayed
Road, Dubai
13 Al-Fateh Traders
Suit # 19, 2nd Floor, Nadir House,
I.I.Chundrigar Road,Karachi
14 Endeavor Pvt. Ltd.
131-J Block, Model Town, Lahore
15 Saqib Mehmood Butt
27-1 Block F, Model Town, Lahore
16 Zain Textiles Pvt. Ltd.
P-223, Shan Plaza, Tikka Gali # 2,
Montgomary Bazar, Faisalabad
17 Macca Steel Mills
Awan Chowck, Near Grid Station
By_Pass G.T Road Gujranwala
31303-9029704-3 Ghulam Muhammad
Mian Khalid Mehmood
Principal
Principal
Interest /
Markup
Others
Total
Ajaz Ali
Shamim Akhtar
42201-0531834-5 Ch. Muhammad Ali
42501-1475791-8 Ch. Muhammad Ali
34,316
-
-
34,316
-
-
5,168
5,168
Waseem Ahmed Qureshi
Veeda Qureshi
Saqib Mehmood Butt
35200-6087509-5 Rafiq Ahmed Qureshi
35200-6573310-6 Waseem Ahmed Qureshi
35202-5121267-9
33,243
-
-
33,243
10,943
-
8,483
19,426
15,851
14,559
1,557
31,967
-
14,559
1,557
16,116
Zulfiqar Ahmed
Iftikhar Ahmed
Farhan Ahmed
Muhammd Imran
Tariq Mahmood
Luqman Khalid
33100-6573787-5
33100-6584332-5
33100-6583382-5
34101-7250901-9
34101-5769881-7
340101-2733062-1
31,539
-
-
31,539
-
-
12,652
12,652
25,000
4,991
-
29,991
-
4,991
-
4,991
Mukhtar Ahmed
Mukhtar Ahmed
Iftikhar Ahmed
Muahmmad Shafique
Abdul Hamid
Muhammad Shafiq
1 of 15
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
18 Omer Haleem Sheikh
Omer Haleem Sheikh
42/A,C/1 Gulberg 111,Lahore Pakistan
19 Tariq Naeem Chughtai
Tanti Optics Plaza, No 8, Super
Market, Islamabad
20 Abbas & Company
People Rice Mills, Aliabad Road, Usta
Muhammad, Quetta.
Principal
Interest /
Markup
Others
Written off
Total
Principal
Interest /
Markup
Others
Total
16,663
7,591
-
24,254
-
5,740
-
5,740
676
20,062
-
3,000
676
3,676
-
20,056
11,556
-
17,336
28,892
Tariq Naeem Chughtai
61101-2713965-5 Muhammad Sharif
16,386
3,000
Ghulam Abbas Rind
Mir Qutubuddin Khan Jamali
Mir Mustafa Khan Jamali
53202-4052023-3 Ismail Rind
54400-4054754-9 Haji Rasool Bux
53403-5734941-3 Mir Qutubuddin
20,056
-
35201-2369225-1 Muhammad Nawaz Qureshi
13,300
5,330
730
19,360
-
5,330
730
6,060
10,855
6,254
-
17,109
-
1,652
-
1,652
10,855
6,254
-
17,109
-
1,627
-
1,627
10,627
6,127
-
16,753
-
1,602
-
1,602
10,627
6,127
-
16,753
-
1,602
-
1,602
35201-1485333-0 Muhammad Ashfaq
12,635
-
-
12,635
-
-
3,971
3,971
33100-5457830-7 Sheikh Muhammad Iqbal
12,665
2,956
253
15,874
-
2,956
253
3,209
9,667
5,719
425
15,811
480
5,719
425
6,624
10,000
4,611
576
15,187
-
4,611
576
5,187
10,157
4,867
-
15,023
635
3,782
-
4,417
13,417
1,266
-
14,683
-
-
2,328
2,328
8,977
4,787
215
13,978
-
4,790
215
5,004
10,500
-
-
10,500
-
-
3,363
3,363
7,425
5,534
652
13,610
-
5,534
652
6,185
12,000
-
-
12,000
-
-
852
852
21 Imtiaz Ahmed
Imtiaz Ahmed
No. 123/2, Block U, Defence Housing
Authority, Lahore
22 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9 Phase 6, DHA Karachi 75500
23 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9 Phase 6, DHA Karachi 75500
24 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9 Phase 6, DHA Karachi 75500
25 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9 Phase 6, DHA Karachi 75500
26 Nuzhat Ashfaq
Nuzhat Ashfaq
House # 169, Block-M, Phase-1, Dha,
Lahore
27 Rafaqat Iqbal
Rafaqat Iqbal
H. No. 1-C,Block C, Peoples Colony,
Faisalabad,
28 Abdul Qayum Iqbal
Abdul Qayum Iqbal
Qayyum Enterprises, 368-P, Khan
Street, Samundry Road, Faisalabad
29 Muhammad Athar Mirza
Muhammad Athar Mirza
M M Ismail Pvt Ltd., 37 Nishter Road,
Lahore
30 Ali Reza Djassemi
Ali Reza Djassemi
P.O. Box # 121793, Dubai
31 Chaudhry Poultry Farm
Muhammad Saleem
589-D, Gulburg Colony, Kasur
32 Tasaddaq Rasool
Tasaddaq Rasool
Humdard University, Canal Road,
Raza Town, Faisalabad
33 Industrial Fabrication Co
Muhammad Yousaf Baig
236-A, New Muslim Town Lahore
34 Shahid Hassan Butt
Shahid Hassan Butt
H. No. 270-N, DHA, Lahore
35 Imam Din Autos
Malik Ijaz Ali Bahatti
15-Ferozpur Road, near General
Hospital, Lahore
33100--6553301-1 Ch. Muhammad Iqbal
35202-4605722-1
35102-2111572-1 Shah Muhammad
33100-4947734-9 Sardar Ghulam Rasool
35202-0216677-3 Ilum-ud-din
35201-6537550-9
35201-1797733-9 Imam Din
2 of 15
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
36 AIQ Forging
17-C Sahowari Shalimar Link Road,
Opp. Shalimar Hospital, Lahore
37 Pangrio Sugar Mills Ltd.
Deh. Rajauri II, Taluka Tando Bago,
Distt. Badin, Sindh.
38 Muhammad Saleem
H. No. 98/2, Main Comm Avenue,
Phase IV, DHA, Near Imam Bargah
39 Pak Land Textile ( Pvt) Ltd
344, Peshawar Road, Rawalpindi
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Principal
Interest /
Markup
Others
Written off
Total
Principal
Interest /
Markup
Others
Total
Awais Iqbal
35201-1333943-1 Muhammad Iqbal
11,000
1,517
-
12,517
-
1,685
-
1,685
Aftab Ahmed
Begum Akhtar Abid
Naheed Zaffar Mirza
Abbas Ally Agha
Ali Ghazi Mirza
Abdullah Kamran Soomro
Asif Saeed
Akber Ali Mirza
42000-0494819-7
42301-7121409-8
42301-8821404-6
42201-8593834-5
41101-4612829-5
42201-3201422-3
41303-9627399-3
41303-9054772-7
12,085
-
-
12,085
-
-
16,060
16,060
Muhammad Saleem
42201-5159450-3 Muhammad
9,394
1,717
221
11,332
-
1,717
221
1,938
Khurram Khaliq Khan
Abdul Khaliq
37405-0591272-5 Abdul Khaliq
13302-0455379-1 Muhammad Ashraf
4,800
6,265
-
11,065
-
6,112
-
6,112
7,017
4,042
-
11,059
-
1,068
-
1,068
35202-7260189-5 Sh. Sajjad Ahmed
8,659
1,788
194
10,641
-
1,788
194
1,982
32302-1125442-7 Ali Muhammad Khan
9,500
930
-
10,430
-
-
1,672
1,672
42301-8895218-1
9,276
645
216
10,137
-
452
151
603
6,025
3,381
-
9,406
-
915
-
915
35201-1637925-1
5,000
3,864
396
9,261
-
3,864
396
4,261
35202-0308614-5 ABDUL HALEEM
4,011
4,921
116
9,048
-
4,921
116
5,037
6,545
3,076
-
9,620
435
3,474
-
3,908
35201-6128780-3 Ch. Muhammad Yaqoob
8,558
-
-
8,558
-
-
1,182
1,182
37405-3852551-5 Nadeem Khalid
37405-9242808-5 Javed Khalid
37405-1265740-8 Javed Khalid
3,443
5,114
-
8,557
583
-
8,579
9,162
40 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9, Phase 6, DHA Karachi
- 75500
41 Kashif Sajjad
Kashif Sajjad
Premier Traders, Shop No.-71, Purani
Mewa Mandi, Lahore
42 Al-Qadir Cotton Ginning Press.Factory M. Azam Khan Pitafi
& Oil Mills
Farman Qadir Pitafi
Mouza Bellaywala, Shah Jamal Road, Ehsan Qadir
Tehsil Jatoi
43 Riaz Badar
Riaz Badar
T-27 2nd Floor, Hakimsons Building,
19 West Wharf Road, Karachi
44 Zulfiqar Paracha
Zulfiqar Paracha
85/1, Street # 9, Phase 6, DHA Karachi
- 75500
45 Muhammad Islam Awan
Muhammad Islam Awan
63-K, Phase-1 DHA, Lahore
46 Naveed Ahmad Paracha
Naveed Ahmad
11-A, Atta Turk Block, New Garden
Town, Lahore
47 Khosrow Eftekharmanavi
P.O. Box # 22550, Doha, Qatar
48 Muhammad Yousaf Yaqub
Muhammad Yousaf Yaqub
House # 94-L, Valencia Housing
Society, Lahore
49 Frontier Ceramics Ltd.
Omer Khalid
Jamrud Industrial Estate, Peshawar
Zia Khalid
Shazia Khalid
Sana Khalid
Pervaz Aslam
Farhat
Raja Ghazanfar Ali
Anwar Ahmed
Kazi Abdul Majid Abid
Justice ® Zaffar Hussain Mirza
Ghulam Ally Agha
Muhammad Nawaz Mirza
Ghulam Nabi Soomro
Abdul Saeed
Fazal Hussain Mirza
3 of 15
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
50 M. Shahid Bandukda
H. No. 38-B/1, Khayaban-E-Shahbaz,
Phase VI, DHA
51 Tariq Hasan
150-Badar Block, Allama Iqbal Town,
Lahore
52 Muhammad Haneef
H. No. 563/E, Gulshan Ravi, Lahore
53 Malik Ahmed Nawaz
Qadir Pur Chimna, P.O Rawa Wahin,
Kehror Pecca, Lodhran
54 Muhammad Jahangir
Blue Star Garments, H. No. 61, Block
J, Gulshan Ravi, Lahore
55 Shahid Mehmood
House No. 382, Block 3, Sector C 1,
Town Ship, 5154750, Lahore
56 Ahmed Iqbal
House No. 521-E, PECHS, Ghazi
Road, DHA, Lahore
57 Shabbir Hussain
H. No. A-14, Avecue Society Block 10A, Gulshan-E-Iqbal
58 Sona Flour Mills
G.T Road, Industrial Area, Amtarpura
Ghakkhar Mandi, Wazirabad,
Gujranwala
59 Al-Falah Hosiery Factory
Jinnah Colony, Faisalabad
60 Abid Ali
Abid Poaltry Farm & Sale Cen 425,
Block 4, Sector B-1, Township, Lahore
61 Syed Tanveer Hussain
Krazy Kids, Shop No. 12 73-Mall
Plaza, Mall Road, Lahore
62 Javed Iqbal
H. No. 148, Block C, Marghazar
Colony, Multan Road, Lahore
63 Arshad Metal Works
Akhara Raheem Pehalwan, Mubarik
Shah Road, Gujranwala
64 Rahat Filling Station
Boza Khel Nazam Bazar, Bannu
65 Chahat Cng Filling Station
16-17 KM, Hafizabad Road, Qila Didar
Singh, Gujranwala
66 Leather Master (PVT) Limited
Sublime Chowk,Wazirabad Road,
Sialkot
67 Rana Musharaf Ali Rice Dealers
H. No. 4, Chahal Stadium, Muridke
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Written off
Principal
Interest /
Markup
Others
Total
Principal
Interest /
Markup
Others
Total
M. Shahid Bandukda
42201-4822665-1 Haji Muhammad
6,473
1,642
166
8,282
-
1,642
166
1,809
Tariq Hasan
35202-2086732-9
4,110
3,723
371
8,205
-
3,723
371
4,095
Muhammad Haneef
35202-0252374-9 Saraj Dine
5,034
1,888
124
7,046
-
1,788
124
1,912
Malik Ahmed Nawaz
36202-3005409-1 Rab Nawaz
4,150
3,570
-
7,720
-
-
2,521
2,521
Muhammad Jahangir
35202-4667342-9 Muhammad Nazir
5,015
2,415
192
7,622
-
2,415
192
2,607
Shahid Mehmood
35202-2866136-3
5,000
2,221
301
7,522
-
2,221
301
2,522
Ahmed Iqbal
35202-2896828-7
4,500
2,669
318
7,488
-
2,669
318
2,988
Shabbir Hussain
42101-0162367-3 Abdul Latif (Late)
4,540
2,445
122
7,107
-
1,967
122
2,089
Mansoor Ahmed
34104-2669781-1 Manzoor Ahmed
7,000
-
-
7,000
-
-
583
583
Malik Manzoor Maqbool Khan
33100-2045323-1 M. Maqbool Khan
6,500
-
-
6,500
-
-
1,323
1,323
Abid Ali
35202-4274536-5 M Saadiq
3,874
2,206
115
6,195
-
2,206
115
2,320
Syed Tanveer Hussain
35202-3170896-5 Syed Athar Hussain
3,635
2,351
181
6,166
-
2,351
181
2,532
Javed Iqbal
35202-4314441-5
3,545
2,258
305
6,108
-
2,258
305
2,563
Pervez Iqbal
34101-5258831-9 Mian Ghulam Rasool
6,000
-
-
6,000
-
-
1,581
1,581
Malikzada Ikramullah Khan
11201-0401534-5 Malik Faizullah Khan
6,000
-
-
6,000
-
-
1,205
1,205
Sajjad Azmat
34101-5377443-9 Azmat Ullah
6,000
-
-
6,000
-
-
759
759
Naeem Javed
34603-2285166-5 Muhammad Amin Javed
5,246
622
-
5,868
-
574
-
574
Rana Musharaf Ali
Rana Muhammad Mansha
35401-4140190-7 Muhammad Sarwar
35201-1585720-3
3,024
2,615
5,639
-
3,078
4 of 15
0
75
3,153
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
68 Five Star Industries
Near Sardar Family Hospital, G.T
Road, Gujranwala
69 Orient Enterprises
6-Mehran Block, Allama Iqbal Town,
Lahore
70 Baryar Gas Centre
Street # 1, Chah Taitianwali, Noshera
Road, Gujranwala
71 Radika L.P. Kaluarachchige
P.O. Box # 22550 Doha, Qatar
72 Major Shah Dairy Farm
Village Herdo Seol Hindu P/O Narang
Mandi Tehsil Ferozwala.
73 Suhail Nisar Bhatti
P.O. Box # 16785
74 Badar Munir Hussain Butt
Galaxy Furniture, Shop# 45, Glaxy
Shopping Cntr 115 Ferozpur Rd,
Besides Galaxy Cinma, Near Shadmn
Colony, Lahore
75 Gino Manahan Bustamante
P.O. Box # 2058
76 Salim Abdullah J Al Kahali
P.O. Box # 5004, Doha, Qatar
77 Lahore Hardware Mill
(Lahore .Hardware Group)
Jan Muhammad Mansion, Jinnah Park,
Peshawar
78 Hilal Khalifa Ali Alyaaribi
P.O. Box # 22247, Doha, Qatar
79 Aizaz Dairy Farm
34-KM, Multan Road, Lahore.
80 Mohamed Ouldsayidna Oumar
P.O. Box # 253
81 Muhammad Majid
47-A, Sartaj Mosque Road, New Civil
Lines, Faisalabad
82 Ch. Muhammad Ilyas Shah Din
H.# 116 St.# 3 Mohallah Ghulam
Hussain Park, Shadbagh, Lahore
83 Abdallahi Ould Mohamed
P.O. Box # 30429
84 Crystal Chemcials Ltd.
115-Quaid-E-Azam Industrial Estate,
Kot Lakhpat, Lahore
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Principal
Interest /
Markup
Others
Written off
Total
Principal
Interest /
Markup
Others
Total
Bashir Ahmed
Muhammad Irfan
34101-7682826-9 Mushtaq Ali
34101-4941720-5 Bashir Ahmed
4,000
1,303
-
5,303
-
1,303
-
1,303
Malik Arshad Hameed Arif
35202-4354652-7 Malik Muhammad Arif
5,000
-
-
5,000
-
-
2,628
2,628
Abdul Rehman Baryar
Abu Bakar Shehzad
34101-6742924-9 Ch. Ghulam Qadir Baryar
34101-4876793-1 Abdul Rehman Baryar
5,000
-
-
5,000
-
-
767
767
5,023
366
-
5,389
5,014
541
-
5,555
2,785
2,182
-
4,967
-
2,170
-
2,170
4,010
832
-
4,843
4,010
832
-
4,843
2,679
1,865
102
4,646
-
1,865
102
1,968
2,816
1,671
-
4,487
2,816
1,671
-
4,487
4,537
305
-
4,842
4,471
441
-
4,912
4,451
-
4,451
-
4,451
-
4,451
3,995
771
-
4,766
717
837
-
1,555
4,305
-
-
4,305
-
-
566
3,010
1,107
-
4,117
3,010
1,107
4,060
-
1,492
Syed Mukrram Ali Shah
Badar Munir Hussain Butt
Sh. Ahsan Ellahi (Deceased)
Altaf Ellahi
S. M. Afzal
Tariq Farooq
Irfan Ali Noor
35401-7928754-3 Ashraf Ali Shah
35202-2227407-1 M Ashraf Butt
17301-9358062-1 Ahsan Ellahi
17301-1331933-7 Sheikh Jan Muhammad
35202-7320984-9 Noor Muhammad
Muhammad Majid
33100-5837098-5
2,539
1,492
Ch. Muhammad Ilyas
35202-1154027-5 Shah Din
3,974
-
-
3,974
-
2,736
1,198
-
3,933
3,897
-
-
3,897
Maqsood A. Sheikh
Mahmood A. Sheikh
S.M. Rasheed
Seema M Sheikh
Surraya Begum
Saeeda Begum
Ahmed Imran Hanif
35201-8341741-7
35201-0559699-3
35202-3623845-5
35201-3186664-2
35202-7110559-4
35202-3168785-4
35202-2364209-7
Bashir A. Sheikh
Bashir A. Sheikh
Sheikh Mohd. Siddique
Mahmood A. Sheikh
Sheikh Noor Ahmed
S.M. Rasheed
Sheikh Mohammad Hanif
5 of 15
29
-
566
4,117
29
1,520
-
1,102
1,102
2,736
1,198
-
3,933
-
-
9,759
9,759
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
85 Adnan Ahmed Khan
Adnan Ahmed Khan
H, No, 11-B,St. No. 28,Nabi Pura,
Gulberg 3, Lahore
86 Larbi Sibari
P.O. Box # 253
87 Rizwan Ahmd Khan
Rizwan Ahmd Khan
New House old Khanewal Teh. &
District Khanewal.
88 Mohamed Mohmood Ould Zaidane
P.O. Box # 370
89 Ch. Habibullah Virk & Co.
Ch.Habib Ullah Virk
Rafique Road, Civil Lines, Sheikhupura Ch.Waqas Ahmed Virk
Ch.Shaharyar Virk
Ch.Tawakkal Ullah Virk
Ch.Yahya Hassan Virk
90 Rana Liaqat Ali Khan
Rana Liaqat Ali Khan
443, 1-C 1, Township, Lahore
91 Muhammad Aftab Bhatti
Muhammad Aftab Bhatti
House # 527, Block-A, Gulshan-ERavi, Lahore
92 Rana Muhammad Akhtar
Rana Muhammad Akhtar
Lab Service, 2nd Floor, CDC Building,
50-A, Kacha Lawrence Road, Lahore
93 Al Noor Textiles Co. WLL
P.O. Box # 32986, Isa Town, Kingdom
of Bahrain
94 Muhammad Saleem Islam
House No. 298-A, Nishtar Block,
Allama Iqbal Town
95 Soma Lab
692-N, Samanabad, Lahore
96 Isselmou Ould Mohamed
P.O. Box # 26051
97 Mohamadou Ould Mohamed Vall
P.O. Box # 253
98 Ahmed Ould Mohamad Sidi
P.O. Box # 253
99 Mohamad Ould Ahmed
P.O. Box # 253
100 Humaid Said Hamed Al Mamari
P.O. Box # 15201
101 State Lite Dos Electrical Ind.
Khokharkee Sialkot Road, Gujranwala
Mansoor Rasheed
CNIC Number
Father / Husband Name
35202-2835074-5 Abdul Rehman
36103-6364690-9 Abdul Ghafoor Khan
Principal
Interest /
Markup
Others
2,660
1,114
86
2,641
1,213
3,000
Written off
Total
Principal
Interest /
Markup
Others
86
Total
3,861
-
1,114
-
3,853
2,641
1,213
812
-
3,812
-
-
2,020
1,718
-
3,739
2,020
1,718
-
3,739
3,693
3,693
600
1,200
3,853
600
Ch. Khushi Mohd. Virk
Ch. Habib Ullah Virk
Ch. Habib Ullah Virk
35404-1647742-5 Ch. Khushi Mohd. Virk
Ch.Tawakkal Ullah Virk
35103-3459927-7
3,020
693
-
3,713
-
-
3,100
451
114
3,665
-
451
114
565
35202-3009904-1 Muhammad Aslam
3,651
-
-
3,651
-
-
960
960
35202-3796911-5 Muhammad Cherag
3,025
532
3,642
-
532
86
618
3,631
-
3,631
3,588
-
1,026
749
-
749
Mohammed Rasheed
-
3,631
86
-
3,631
Muhammad Saleem Islam
35202-3014245-7 Muhammad Aslam
2,466
1,026
Mian Ghulam Jilani
35202-2343495-1 Mian Fazal Din
3,000
575
-
3,575
-
1,834
1,649
-
3,483
1,834
1,649
-
3,483
1,811
1,621
-
3,432
1,811
1,621
-
3,432
1,730
1,662
-
3,392
1,730
1,662
-
3,392
1,897
1,470
-
3,367
1,897
1,470
-
3,367
1,978
1,385
-
3,363
1,978
1,385
-
3,363
2,000
1,347
-
3,347
-
1,347
1,236
1,932
-
3,168
1,236
1,932
-
3,168
2,760
408
-
3,167
2,760
408
-
3,167
1,304
1,780
-
3,084
1,304
1,780
-
3,084
2,201
873
-
3,074
2,201
873
-
3,074
Mirza Ghalib Masood
Abdul Hameed
34101-3381997-1 Abdul Ghafoor
34101-4468617-3 Haji Muhammad Sadiq
102 Ahmed Vall Ould Abdel Wedood
P.O. Box # 76444
103 Wazeer Hussain Shah
P.O. Box # 15048
104 Charles Augustin George
P.O. Box # 28427
105 Maribet Tondo Boiles
P.O. Box # 1038
6 of 15
96
-
96
1,122
1,347
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Principal
Interest /
Markup
Others
Written off
Total
Principal
Interest /
Markup
Others
Total
106 Muhammad Qasim
MUHAMMAD QASIM
Haji Toy Shop, Shop No A-I 11, Comm
Zone, Liberty Market, Gulberg III, Near
Bank Al Falah, Lahore
35202-3219648-9 Muhammad Aslam
2,107
826
130
3,063
-
826
130
956
107 M. Afzal Appartment
Muhammad Afzal
Mohallah Alfalah, Hashtnagri
Peshawar City.
108 Late Juma Mubarak Jamhoor
Juma Mubarak Jamhoor ( Late)
109 Mian Muhammad Asif
Mian Muhammad Asif
Asif Centre 31-32 Green Building Near
Chouburji, Lahore
110 Faizan Enterprises
Muhammad Ashraf
Mohallah Alfalah, Mouza Arazi, Tukra #
1, Outside Hasahtnagri, Peshawar
16102-2286183-9 Gul Muhammad
3,050
-
-
3,050
-
-
584
584
35202-2666953-3 Mian Muhammad Sharif
3,015
3,000
-
-
3,015
3,000
3,015
-
-
2,406
3,015
2,406
17301-4764765-9 Abdul Aziz
3,000
-
-
3,000
-
-
516
516
2,847
276
-
3,123
2,846
372
-
3,218
891
1,970
-
2,861
891
1,970
-
2,861
1,976
847
-
2,823
1,976
847
-
2,823
2,000
766
2,811
-
834
1,272
1,523
-
2,795
1,272
1,500
1,186
-
2,686
2,572
200
-
2,552
-
111 Dicky Casionan Kissob
P.O. Box # 383, Doha, Qatar
112 Anil Balakrishanan
P.O. Box # 2617
113 Maneh Haidar
P.O. Box # 1038
114 Pak Sweet House
Muhammad Younas
Chowk Laal Pul, Mughal Pura, Lahore
115 Olga Broskina
P.O. Box # 1038
116 Faizan Corporation
39 B, Ghalla Mandi , Chishtian
117 Ahmed Mohammed Ali Al Salmani
P.O. Box # 50033, Doha, Qatar
118 Javed Alam Siddiqui
P.O. Box # 4410
119 Niazi Traders
Shop No. 114, Fruit & Vegetable
Market, Kot Lakhpat, Lahore.
120 Fahad Mehboob
Al Moqeit International, Shop No. 92,
4th Floor, Hafeez Centre, Main
Boulevard, Lahore
121 Jafar Ali Peer Mohamed
P.O. Box # 3258
122 S Khursheed Alam
Flat No.B-15, Bhayan Haven, Block K,
North Nazimabad, Karachi
123 Imran Rabbani
L-648, Sector 5-C/3, North Karachi
Township, Karachi
124 Moazam Pertolium Service
Digri Bypass Road Digri
Ch. Muhammad Anwar
35201-1236118-7 Muhammad Rasheed
31102-8204341-7 Ch. Umer Din
Abdul Ghafoor Khan Niazi
35200-1395403-5 Khaliq Dad Khan Niazi
Fahad Mehboob
35202-9504276-7 Mehboob Elahi
45
879
1,523
-
2,795
-
836
-
836
2,772
2,572
286
-
2,857
2,552
-
2,552
-
2,552
1,500
872
64
2,436
-
979
64
1,043
100
2,019
284
2,402
-
2,019
262
2,280
866
1,498
-
2,364
866
1,498
-
2,364
2,329
-
706
2,289
289
-
2,283
-
S Khursheed Alam
42101-3142307-3 S. Muhamad Ashraf Uddin
1,566
706
Imran Rabbani
42101-2442178-7 Sultan
2,289
-
Ghulam Hyder
44101-0373574-9 Mir Jan Muhammad Khan
1,200
1,037
7 of 15
45
57
-
45
1,037
57
763
431
720
-
1,037
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
125 Sohail Merchant
New Decora Furnishers, Shop No. 3-4,
Zubeda Gardens, Shahrah-E-Faisal,
Karachi
126 Mushtaq Ahmed
H. No. 1187, Block P, Sabzazer
Scheme, Multan Road, Lahore
127 Taleb Mohamed Ould Mohamed Elm
P.O. Box # 253
128 Muhammad Aslam Tamimi
House No. P-295, Street No. 5,
Liaqatabad No. 1, Faisalabad
129 Babar Paper Mart.
Saif Building, 20 - Urdu Bazar, Lahore
130 Muhammad Salim Haji Eida Jan
P.O. Box # 118899
131 Ali Rice Corporation
Grain Market Jattan, Mandi Faizabad
132 Mumtaz Bugaum
Qasr-e-Khalil, Jamal Pura Colony,
Daulat Gate, Multan
133 Salim Alawi Aqil Baalwoui
P.O. Box # 253
134 Abdul Rehman & Sons
Kalaske Mandi, Wazirabad
135 Hussein El Husseini
P.O. Box # 502300
136 Al Fao General Trading Est
P.O. Box # 15847, Al Ain
137 Josefina Dimasuay Santillan
P.O. Box # 32430
138 Pedro Derano Silvoza Jr
P.O. Box # 3258
139 Zubari Bags
Ghali Chobaakan Rail
Bazar,Gujranwala
140 Mehran Ice Factory
Station Road Rohri, Distt.Sukkur
141 Fancy Leather House
5-E Shahalam Market, Lahore
142 Cherukkunan Mundyen
P. Kumar, P.O. Box # 2951
143 Saadna Ould Badeye
P.O. Box # 253
144 Angelica Villamar Dagdag
P.O. Box # 73363
145 Rana Faiz Muhammad
Mouaza Haji Pur, Rajanpur.
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Written off
Principal
Interest /
Markup
Others
Total
Principal
Interest /
Markup
Others
Total
Sohail Merchant
42201-8750777-7
1,814
278
146
2,239
1,814
278
146
2,239
Mushtaq Ahmed
35202-2532732-9 Rehmat Ali
1,489
630
67
2,186
89
630
67
786
2,051
126
2,177
2,051
126
2,176
-
793
-
Muhammad Aslam Tamimi
33100-0587190-5 Muhammad Anwar
1,368
806
3
Arif Saeed
35202-1723484-9 Muhammad Sadiq
1,500
-
-
1,500
-
-
1,059
1,090
-
2,149
1,059
1,090
106
2,132
-
918
-
-
2,177
3
796
657
657
-
2,149
Sher Muhammad
Fazal Muhammad
35401-9443883-7 Mutehla
35401-4533728-9 Mohammad Aslam
1,108
918
Mumtaz Bugaum
36302-4486862-4 Sh. Khalil Ahmed
1,000
1,111
-
2,111
-
200
1,908
-
2,108
200
1,400
624
2,094
-
663
1,103
962
-
2,065
1,103
962
-
2,065
1,508
555
-
2,063
1,508
555
-
2,063
1,064
984
-
2,048
1,064
984
-
2,048
439
1,527
-
1,965
439
1,527
-
1,965
Abdul Rehman Butt
34104-2206648-3 Muhammad Sharif
Ahmed Ghulam Hayat (UAE)
Mansoor Adam (Indian)
Authorised attorney
70
1,908
30
948
725
725
31
2,108
694
Muhammad Zabair
34101-3447599-3 Muahaamd Yaqoob
1,400
559
-
1,959
-
559
-
559
Niaz Hussain Pathan
45502-9978376-1 Khan Muhammad Khan
1,291
612
-
1,903
-
283
403
686
Sh. Laal Din
35202-8637124-7 Sh. Ghulam Muhammad
1,335
534
-
1,869
-
534
-
534
862
1,004
-
1,866
862
1,004
-
1,866
110
1,743
-
1,853
110
1,743
-
1,853
814
1,013
-
1,827
814
1,013
-
1,827
1,000
807
-
1,807
-
Rana Muhammad Faiz
32402-1417364-5 Sobha Sadiq
8 of 15
-
607
607
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
146 Ansar Ahmad
Chak No:118 sb tehsil sillanwali distt
sargodha
147 Ghazi Commission Shop
Ramke Chatta, Chak Ghazi, Tehsil &
Distt.Hafizabad
148 Ali Salim Ali Al Hajri
P.O. Box # 253
149 Mohammed Ali K.Alshekaili
P.O. Box # 923, Doha, Qatar
150 Imtiaz
P.O. Box # 135
151 Kashif Knitwear
Qureshi Street Bund Road, Lahore
152 Lal Pakkathu Sukumaran
P.O. Box # 491, Doha, Qatar
153 Piyasiri Thirimadura
P.O. Box # 56786
154 Muhammad Raiz Bhatti
H. No. 174, Block F, Gulshan-E-Ravi,
Lahore
155 Mohamed Ould El Mokhtar
P.O. Box # 253
156 Femida Tariq
123-B, Block 2, P.E.C.H.S, Tariq
Road, Karachi
157 Wilfred Santhmayor
P.O. Box # 73663
158 Sheraz
E-7, Block 14, Saleemabad Colony,
F.B. Area
159 Zil-E-Hasnain Malik
Mohallah Militry Farms, Lahore
160 Ayaz Khan
Dr. Imtiaz Ali Khan Street, Reham
Pura, Hazara Road, Hassan Abdal
161 Oulid Mourali
P.O. Box # 383, Doha, Qatar
162 Sharmeen
House No. B-98, Block-A, Near Raza
Momerial High School, Hyderabad
163 Syed Navaid Gilani
P.O. Box # 242 Doha, Qatar
164 Abdul Malick Inamul Haq
P.O. Box # 46806
165 Madina Traders
6 - Urdu Bazar, Lahore
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Ansar Ahmad
38405-2297721-5 Ghulam Qadir
Qamar Abbas Chatha
34301-1710287-7 Ghulam Abbas
Muhammad Uris
Sh. Asif Ali
Muhammad Raiz Bhatti
Femida Tariq
35202-1752373-1 Sh. Ilayqat Ali
35202-4990353-9
42301-7285780-6 Muhammad Tariq Akram
Sheraz
42101-1660961-7 Shahb Ud Din
Zil-e-Hasnain Malik
35201-1293132-1 Muhammad Sibtain
Ayaz Khan
37103-1035786-5 Banarus Khan
Sharmeen
Ch. Sajid Waseem
Sajjad Khan
41304-6154504-2 Ghulam Nabi Rajar
35202-3127636-7 Ch. Lal Muhammad
166 Edward Andren Devocion
P.O. Box # 121850
9 of 15
Principal
Interest /
Markup
Others
900
824
76
1,790
Written off
Total
Principal
Interest /
Markup
Others
Total
1,799
-
824
-
824
-
650
650
-
-
1,790
-
512
1,242
-
1,754
512
1,242
-
1,754
1,720
114
-
1,834
1,719
165
-
1,884
720
966
-
1,686
720
966
-
1,686
1,000
650
-
1,650
-
708
-
708
1,516
235
-
1,751
1,512
289
-
1,801
475
1,114
-
1,589
475
1,114
-
1,589
836
643
1,555
-
1
1,519
947
76
643
76
-
1,520
1
1,519
-
353
197
1,497
284
353
197
493
965
-
1,458
493
965
-
417
442
590
1,450
117
442
-
-
1,438
-
789
192
423
1,404
1,228
253
-
959
251
1,255
719
1,520
834
1,458
62
621
-
687
687
118
192
423
734
1,481
534
315
-
849
151
1,361
192
251
151
594
209
-
1,465
1,255
267
-
1,522
660
665
-
1,325
660
665
-
1,325
500
820
-
1,320
-
820
-
820
640
670
-
1,310
640
670
-
1,310
1,438
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
167 Rais Uddin Shamsi
Sharp Filter Pvt Ltd., 502, Anam
Street, Shahrah-E-Faisal Karachi
168 Ould Mohamed M.V.D.Lamorabe
P.O. Box # 27483
169 Rebecca Navarrete Doctor
P.O. Box # 15258
170 Sadhike Telapurath
P.O. Box # 45553
171 Meraj Khalid
Mouaza Sultan Khar, District M Garh
172 Shakir Abbas Malik
P.O. Box # 1367, Dubai
173 Naeem Yaqub
Natasha Textiles, 217-B-1, Johar
Town, Lahore
174 Ejaz Yousaf
C201, Block 6, F.B. Area, Aisha
Manzil, Karachi
175 Jose Duenas Nulud Jr
P.O. Box # 2140
176 Muzaffar Khan
H No. L-350, Sector 5-A/2 , North
Karachi
177 Ehsan Brothers
(Lahore Hardware Group)
Jan Muhammad Mansion, Jinnah Park,
Peshawar
178 Salah Ali Abdulhabeb
P.O. Box # 31777
179 Karthikeyan Kathiresan
P.O. Box # 121890
180 Mohammad Umair Malik
H. No. F-7/4, Steel Town, Bin Qasim,
P Block Street, Distt. Malir, Karachi
Name of Individuals Partners /
Proprietor / Directors
Rais Uddin Shamsi
CNIC Number
Father / Husband Name
42101-3007808-7
Principal
Interest /
Markup
Others
506
49
749
1,304
101
49
48
1,236
-
1,283
48
1,236
-
1,283
1,278
-
1,278
-
1,278
-
1,278
733
544
-
1,277
733
544
-
1,277
750
523
-
1,273
-
-
523
846
291
132
1,270
846
291
-
-
Meraj Khalid
36303-0992795-3 Malik Muhammad Akram
Shakir Abbas Malik
Written off
Total
Principal
Interest /
Markup
Others
749
Total
900
523
1,137
Naeem Yaqub
35202-0776125-7
502
22
728
1,251
75
22
728
825
Ejaz Yousaf
42101-7838736-9 S. W. Hussain Rizvi
469
19
761
1,249
56
19
761
836
245
979
-
1,224
245
979
-
756
286
181
1,223
166
286
151
61
1,136
-
1,197
-
1,097
-
1,097
1,185
-
1,185
-
1,185
-
1,185
521
631
-
1,151
521
631
-
1,151
42501-1404715-5 M. Ozair Malik
418
19
706
1,142
63
19
706
787
42201-1835098-3 Moeez Ur Rehman
502
22
593
1,118
122
22
593
738
943
140
15
1,098
943
140
15
1,098
620
181
297
1,097
31
181
297
509
439
655
-
1,093
439
655
-
1,093
494
599
-
1,093
494
599
-
1,093
384
708
-
1,092
384
708
-
1,092
Muzaffar Khan
Sh. Ahsan Ellahi (Deceased)
Altaf Ellahi
S. M. Afzal
Tariq Farooq
42101-1230829-9 Zafar Khan
181 Masood Ur Rehman
Masood Ur Rehman
Figs Pharmaceuticals, Suit No 107, 1st
Floor, Mehrab Market, Kutchi Gali 1,
Marriot Road, Karachi
182 Elwyn Keith Roberts
P.O. Box # 35560
183 Ejaz Yousaf Kalah
Ejaz Yousaf Kalah
Moh Qazi Gate, Enimabad Town,
Gujranwala
184 Badar Avani
P.O. Box # 1065
185 Mohamed Abd El Hady Eid Ibrahim
P.O. Box # 1367
186 Muhammed Sunnith Meleppurath
P.O. Box # 1204
603
17301-9358062-1 Ahsan Ellahi
17301-1331933-7 Sheikh Jan Muhammad
-
Mohammad Umair Malik
1,224
34101-6028586-1 Muhammad Yousaf Kala
10 of 15
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
187 Syed Rahat Hussain
Plot # 01, House # 23, Old Civil Line,
Sargodha
188 Mohammad Yaqoob
H. No. 101, Block B, Bhattai Town,
Hyderabad
189 Masood Ahmed
H. No. A-23, Nafees Banglows, Malir
Colony
190 Ramaiah Ganapatay
P.O. Box # 45196
191 Asghar Nawaz Malik
Flat No. A 49, 1st Floor, Sagheer
Centre, Block 16, F.B. Area, Karachi
192 Syed Ahmed Obaid
H. No. Q-50, Flat-101, Block II,
PECHS, Karachi
193 Ayaz Ahmed
Leberty Agro Chemical, Shop No. B2043, Ground Floor, Bunder Road,
Sukkar
194 Imthiaz Ahamed Kamliar Thameem
P.O. Box # 20560
195 Muhammad Jameel Akhtari Shaikh
Flat No.2/4, Eastren Pride Block 15,
Gulistan-E-Johar ,Karachi
196 Talha Rasheed Soorti
Flat No. 302 Amna Home, Business
Recorder Road, Garden East, Near
Aisha Heaven, Karachi
197 Abdul Razzaq Khanani
Flat No. B-110, Rex Centre,
Zaibunnisa Street, Saddar, Karachi
198 Wassim Ahmad Mahmoud
P.O. Box # 1321, Doha, Qatar
199 Anthonysamy Arulandu
P.O. Box # 121890
200 Bukhari Motors
Mohallah Arshad Town, Khawaja
Street # 3, Tehsil & Distt. Mandi
Bahauddin.
201 Chandra Kumar Rai
P.O. Box # 82, Doha, Qatar
202 Muhammad Bashir
Wafia Embroidery, Plot No. 3, Nazir
Street, Muslim Park, Ichra, Lahore
203 James Douglas Poter
P.O. Box # 92
204 Sagar Imdad Unar
H. No. C-61, Block 2, Clifton, Karachi
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Principal
Interest /
Markup
Others
Syed Rahat Hussain
38403-6592482-9 Syed Hadi Hassan
747
208
136
Mohammad Yaqoob
45403-0791718-9 Mohammad Yousuf
597
332
-
Masood Ahmed
42201-9857023-3 Muhammad Ahmed
622
211
-
1,081
Written off
Total
Principal
Interest /
Markup
Others
Total
1,091
157
208
136
501
928
37
332
154
523
248
1,081
124
211
248
584
-
1,081
-
1,081
-
93
464
557
-
1,081
Asghar Nawaz Malik
61101-4056766-5 Malik Muhammad Nawaz
508
93
479
1,080
Syed Ahmed Obaid
42201-4509479-1 Mir Makhdoom Ali
484
24
571
1,079
84
24
571
679
Ayaz Ahmed
45504-5019200-1
505
512
44
1,061
105
512
44
661
511
548
-
1,059
511
548
-
1,059
Muhammad Jameel Shaikh
42000-0570932-3 Shaikh Muhammad Shamiuddin
488
33
533
1,054
73
33
533
640
Talha Rasheed Soorti
42000-0368474-5 Abdul Rasheed Surti
462
23
566
1,051
69
23
566
658
Abdul Razzaq Khanani
42301-4935575-7
479
25
524
1,028
99
25
524
648
987
114
-
1,100
986
150
-
1,136
139
863
-
1,002
139
863
-
1,002
-
-
1,000
-
-
815
918
144
-
1,063
918
177
-
406
9
565
981
112
9
565
687
712
242
15
969
712
242
15
969
650
201
117
968
195
201
117
513
191
772
-
963
191
772
-
963
Shafqat Abbas (Late)
Muhammad Bashir
Sagar Imdad Unar
34402-1651628-1 Ghulam Shabbir (Late)
352022-794929-9
43203-5031078-9 Imdad Ullah Unnar
205 Gul Shah Zakir
P.O. Box # 6891
11 of 15
1,000
815
1,095
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
206 Mohamed Riazi Mohamed Sathar
P.O. Box # 2798
207 Shahzada Yaqoob Hussain
Shahzada Yaqoob Hussain
Flat No. 107 A, St. No. 32, Int Centre,
G91, Islamabad
208 Juan Mayo Dela Cruz
P.O. Box # 8988
209 Catherine Pacheco Arnobit
P.O. Box # 502300
210 Henry Remiodios Visitacion
P.O. Box # 12890
211 Norman Lugtu Dela Cruz
P.O. Box # 82, Doha, Qatar
212 Raymond Romero Tantoco
P.O. Box # 34126
213 Maricyl Niebres Quintana
P.O. Box # 46713
214 Muhammad Yaqoob
Muhammad Yaqoob
Flat No. 1 A, 1st Floor, Plot 144, Nilam
Lane 7, Phase 5, DHA, Karachi
215 Muhammad Afzal Tabbasam
P.O. Box # 6291
216 Moussa Ould Sid Ahmed
P.O. Box # 253
217 Noel Jatico Rojas
P.O. Box # 277
218 Muhammad Shahid Pervaiz
Muhammad Shahid Pervaiz
No. 114, Block C, Rehman Pura,
Lahore
219 Baiju Puthupparampu Rajappan
P.O. Box # 31384, Doha, Qatar
220 Sarath Mangala
P.O. Box # 153, Doha, Qatar
221 Basho Mal
Basho Mal
Sagar Pardeep General Store, Near
MCB, Anaj Mandi, Larkana
222 Gopal Krishna Govind Bhatia
P.O. Box #: 46652
223 Muhammad Shahid Ramzan
Muhammad Shahid Ramzan
House No. 1413, Street No. 23, Azam
Basti, Karachi
224 Biju Kumar Bhaskaran Nair
P.O. Box # 2149
225 Taramel Vadakke Kudilil Mural
P.O. Box # 15258
226 Rasak Langalath Vazhayil
P.O. Box #: 24309
227 Anna Lizza Cecilia Frias Ferrer
P.O. Box # 44486
228 Mohammed Mahabubul Alam
P.O. Box # 3258
CNIC Number
Father / Husband Name
61101-1812495-5 Fazal Hussain
42301-4166476-7 Naseeb Khan
35202-2286712-7
43203-1344070-3
42301-1111539-7 Mohammad Ramzan
12 of 15
Written off
Principal
Interest /
Markup
557
401
-
958
557
401
-
958
444
140
364
948
89
140
364
593
373
575
-
948
373
575
-
948
423
525
-
947
423
525
-
947
523
415
-
938
523
415
-
938
894
115
-
1,009
894
146
-
1,040
336
593
-
928
336
593
-
928
297
618
-
916
297
618
-
916
430
19
463
912
80
19
463
562
479
372
44
895
479
372
44
895
-
878
-
878
-
878
-
878
268
593
-
861
268
593
-
861
376
444
860
75
444
899
29
-
928
899
57
-
956
854
63
-
917
823
91
-
914
386
426
29
840
86
426
29
540
662
133
34
829
662
133
34
829
319
15
495
829
48
15
495
558
Others
41
Total
Principal
Interest /
Markup
Others
41
Total
560
-
776
-
776
-
776
-
776
-
776
-
776
-
776
-
776
299
423
747
299
423
303
432
-
735
303
432
-
735
-
734
-
734
-
734
-
734
25
25
747
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
229 Ali Mehdi
P.O. Box # 17691
230 Saeed Ahmad
Saeed Traders, 31-A, Timber Market
231 Saleh Salim Said Al Badi
P.O. Box # 906, Doha, Qatar
232 Syed Hasnain Raza
S M Taqi Distributors 14, Block E,
Samanabad
233 Allan Martelino Velasco
P.O. Box # 153, Doha, Qatar
234 Noushad Abdulla
P.O. Box # 7581
235 Ulysess Larano
P.O. Box # 1290, Doha, Qatar
236 Evangeline Hinay Liban
P.O. Box # 30439
237 Abdul Jabbar
Ahad Rice Mills, 3-Km, Pakpattan
Road
238 Tariq Brothers
(Lahore .Hardware Group)
Jan Muhammad Mansion, Jinnah Park,
Peshawar
239 Magdy Mahmoud Kamel Mohamed
P.O. Box # 135
240 Sunil Amarasiri Hingurala
P.O. Box # 40379, Doha, Qatar
241 Thulasi Das Sadasivan
P.O. Box # 3
242 Lab Raj Shah
P.O. Box # 580
243 Ahmed Darwish Ali Al Balushi
P.O. Box # 36, Doha, Qatar
244 Prathap Elias Mathew
P.O. Box 52625
245 Jeffrey Joseph Bondy
P.O. Box # 1633
246 Bikash Gurung
P.O. Box # 580
247 Muhmmad Ali Awan
Style Boutique, No. 7, Nawaz Plaza
Gali, Lady Doctor Shehnaz, Janjua
Hospital Road
248 Anura Jayasinghe Manachchige
P.O. Box # 153, Doha, Qatar
249 Janice Mag-Apan Montesa
P.O. Box # 30439
250 Badriya Kakkadathu Ali
P.O. Box # 290
251 Tameez Alam
Chatkhara Pvt., 14-First Floor, Fortress
Stadium Cantt., Lahore
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Principal
-
Saeed Ahmad
Syed Hasnain Raza
35201-1463342-1
35202-2618678-9
Sh. Ahsan Ellahi (Deceased)
Altaf Ellahi
S. M. Afzal
Tariq Farooq
Muhmmad Ali Awan
35301-1910052-5
-
Principal
Interest /
Markup
712
-
712
699
569
61
751
684
90
684
567
63
Others
-
Total
712
684
67
567
63
614
111
-
725
601
133
-
735
200
434
-
634
200
434
-
634
615
62
-
677
614
87
-
701
625
-
625
-
625
-
625
620
480
619
-
619
619
451
133
56
-
682
480
50
69
Total
61
-
55
90
-
50
69
-
699
774
55
90
-
684
620
-
619
619
451
133
626
37
-
663
626
-
612
-
612
-
612
-
612
384
225
-
609
384
225
-
609
595
61
-
656
595
79
-
674
517
61
28
606
517
61
28
606
427
147
28
602
427
147
28
602
387
211
598
387
211
487
44
597
487
44
530
110
-
641
530
130
-
660
59
534
-
593
59
534
-
593
591
-
591
-
591
-
591
579
472
17301-9358062-1 Ahsan Ellahi
17301-1331933-7 Sheikh Jan Muhammad
61101-9050905-1
Tameez Alam
712
Others
569
Abdul Jabbar
Interest /
Markup
Written off
35201-1223695-2
472
13 of 15
66
34
66
42
66
34
-
619
598
66
42
597
579
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
Name of Individuals Partners /
Proprietor / Directors
258 Kanhayalal Choithwani
P.O. Box: # 46444
259 Atif Maqbool
Selectronics 9, Abid Market, Queens
Road, Mozang
260 Abd Ur Rehman
Askari Commercial Bank, AWT Plaza,
3rd Floor, Audit Division, The Mall,
Rawalpindi
261 Ijaz Ahmed
Dream Cars, Pak Plaza, Fazal E Haq
Road, Blue Area
262 Muhammad Saeed Ch
Mumtaz Motors, 53 Alfatah Market,
Allama Iqbal Road, Railway Station
263 Mahesh Kumar Puthiyadath Valap
P.O. Box # 31558
264 Farhan Aijaz
Farhan International, C 429, National
Auto Plaza, Marston Road
265 Christopher Joseph Nedell
P.O. Box #:71453
266 Ehsan Ullah Qureshi
Syed Corporation, Block-65, I T
Center, Sector G-8/1
267 Rana Arshad Saleem
Click On Systems, Shop No. 89,
Ground Floor, Trust Plaza
268 Roberto Briones Gutierrez
P.O. Box # 1290, Doha, Qatar
269 Maria Florence Oliver Dionido
P.O. Box # 1482
Father / Husband Name
Principal
Interest /
Markup
Others
342015-806030-3
374
77
128
578
374
77
128
578
42101-9591169-5
484
69
17
570
484
69
17
570
33102-2385597-3
494
50
25
570
494
50
25
570
Faisal Tanveer
35202-4054857-5
429
38
98
565
429
38
98
565
Khawaja Bilal
33100-0450297-3
478
65
21
565
478
65
21
565
Amjad Ali Shaida
35202-2733379-5
482
62
18
562
482
62
18
562
376
157
28
561
376
157
28
561
252 Danish Masood
Danish Masood
U-Fone Franchise, Guliyana Road,
Kharian
253 Mohd Atiq
Mohd Atiq
Shamsi Traders, Room No. 305, 3rd
Floor, J J Center, Darya Lal Street,
Jodia Bazar
254 Ikram Ullah
Ikram Ullah
Ikram Wan Store, 1-KM, Jhumra Road,
Khurrian Wala, Near Rana House
255 Danish Masood
U-Fone Franchise, Guliyana Road,
Kharian
256 Khawaja Bilal
Musa Brothers, P-54, 2nd Floor BC
Tower, Jinnah Colony
257 Amjad Ali Shaida
Suit No. 318, 3Rd Floor, Eden Centre
CNIC Number
Written off
Total
Principal
Interest /
Markup
Others
Total
Atif Maqbool
35202-8390381-3
491
49
16
555
491
49
16
555
Abd Ur Rehman
35202-1668539-1 Abdul Aziz
490
42
21
553
490
42
21
553
Ijaz Ahmed
37405-3103828-7
463
18
70
551
463
18
70
551
Muhammad Saeed Ch
35202-3392527-5
494
39
17
550
494
39
17
550
276
272
548
276
272
488
40
17
545
488
40
17
545
473
47
22
541
473
47
22
541
Farhan Aijaz
42201-0420351-9
-
-
548
Ehsan Ullah Qureshi
61101-5055306-7
481
32
27
540
481
32
27
540
Rana Arshad Saleem
38403-1531776-1
489
27
19
536
489
27
19
536
520
53
-
572
519
70
-
527
527
527
14 of 15
-
-
-
590
-
527
Annexure 'B' as referred to in note 10.6 of the Bank's unconsolidated and consolidated financial statements
Statement Showing Write Off Loans or any Other Financial Relief of Five Hundred Thousand Rupees (Rs.0.500 M) or Above Provided During The Year Ended on 31.12.2012
Rs in 000's
At the beginning
Sr.
No.
Name and address
270 Sakib Rashid
Trade Garden, Suite No. 13-14, 1st
Floor, Block H, Amaan Bussiness
Centre, Johar Town
271 Muhammad Asif
Faisal Waan Store, P-223, Waan Wali
Gali, Bhawana Bazar
272 Ameen Azhar
Daily Times, Suite No. 313, The Plaza,
G-7, Block 9, Clifton
273 Babar Ali Mughal
Mughal Collections, Shop No. 253-246
2nd Floor, Ghakhar Plaza, Saddar
274 Arayath Parambil Unneen Kutty
P.O. Box # 51900
275 Sabaz Ali Khan
P.O. Box # 211
276 Atif S. Iqbal
SBE Pvt. Ltd., Harbance Pura Road,
Lahore
277 Arif Khalid
Arif Silk, Shop No. 1st, Floor Textile
Plaza, M. A. Jinnah Road
278 Kaneez Jamshed
R-1305, Sector 15-A-4, Buffer Zone,
North Karachi
279 Nalakath Hameed Ali
P.O. Box # 26872
280 Jose Duenas Nulud Jr
P.O. Box: # 107241
281 Tabbasum Jawaid
PDH Pvt. Ltd. Suit, No. 5, 2nd Floor,
Ginza Centre, Block 104-W, Blue Area
282 Zaheer A Qureshi
Luxury Garments, Shop No. 13,
Karima Arcade, Mir Ayub Khan Road,
Ramsoumi
283 Richard Castaneda Terrado
P.O.Box No 1290 Doha-Qatar
284 Ok Oil Mills Pvt Ltd
Hasrat Mohani Road, Karachi
285 Athar Haneef Naseem Sheikh
House No. 49, Kh. -e-Tariq, Phase 6,
DHA, Karachi
Name of Individuals Partners /
Proprietor / Directors
CNIC Number
Father / Husband Name
Written off
Principal
Interest /
Markup
Others
Total
Principal
Interest /
Markup
Others
Total
Sakib Rashid
35202-2780142-1
457
32
38
526
457
32
38
526
Muhammad Asif
33100-0618963-7
390
38
98
526
390
38
98
526
Ameen Azhar
42301-1120605-9
438
60
24
522
438
60
24
522
Babar Ali Mughal
37405-3348577-3
473
35
14
521
473
35
14
521
167
353
-
521
167
353
-
521
193
326
-
519
193
326
-
519
Atif S Iqbal
35201-0402448-3
470
37
11
518
470
37
11
518
Arif Khalid
42201-0994647-3
463
41
12
516
463
41
12
516
Kaneez Jamshed
42101-8093148-4 Jamshed Alam
423
57
34
514
423
57
34
514
77
437
-
513
77
437
-
513
182
172
158
511
182
172
158
511
31
21
510
458
31
21
510
8
509
501
8
509
476
Tabbasum Jawaid
61101-1801404-1
458
Zaheer A Qureshi
42201-4925095-7 Zahoor Ahmed
501
Richard Castaneda Terrado
Mushahid Shah
Nageen Mushahid
35202-6321378-9 Mujahid Shah
35202-5141026-6 Mushahid Shah
Athar Haneef Naseem Sheikh
42301-5298596-5 Haneef Sheikh
15 of 15
476
46
-
521
299,085
93,706
-
392,791
-
-
4,000
4,000
TOTAL
-
1,764,544
686,025
176,732
2,627,301
-
62
-
537
-
103,077
-
103,077
-
20,379
-
20,379
414,175
641,273
167,191
1,222,639
Annexure 'C' As Referred to in Note 11.7 of
Unconcolidated Financial Statements
Disposals of operating fixed assets during the year 2012
Cost
Accumulated Book
Sale
depreciation value proceeds
--------------(Rupees in '000)--------------
Mode of disposal
Particulars of Buyers
Furniture and fixtures
Items having book value of less
than Rs. 250,000 or cost of
less than Rs. 1,000,000
20,332
19,043
1,289
1,846
Auction
Various
Electrical, office and
computer equipment
Items having book value of less
than Rs. 250,000 or cost of
less than Rs. 1,000,000
97,679
96,010
1,669
9,478
Auction
Various
6,850
8,824
1,502
892
893
1,389
1,502
6,165
8,481
293
94
104
792
501
685
343
1,209
798
789
597
1,001
1,370
3,669
1,300
799
750
950
1,250
Buy back
Negotiation
Insurance Claim
Buy back
Insurance Claim
Insurance Claim
Insurance Claim
Atif R. Bokhari
Salama Insurance
M/s UBL Insurers Ltd
Syed Tasnim Ul Hassan
M/s UBL Insurers Ltd.
M/s UBL Insurers Ltd.
M/s UBL Insurers Ltd.
849
636
560
620
620
555
555
2,410
879
1,812
1,812
1,227
1,016
8
249
764
439
504
558
558
500
500
2,169
791
1,741
1,741
1,180
820
8
36
85
197
56
62
62
55
55
241
88
71
71
47
196
213
575
168
186
186
167
167
241
750
397
397
340
209
200
Auction
Insurance Claim
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Insurance Claim
Negotiation
Negotiation
Auction
Buy back
Write-Off
Insurance Claim
Zahid Qadri
M/s UBL Insurers Ltd
Zahid Qadri
Adam Khan
Zahid Qadri
Riza Ahmed
M. Azam
Muhammad Asghar
M/s Takaful Insurance Co
Mr.Lalji Premji
Mr.Lalji Premji
Ajmal Pervez
Muhammad Shafi
35,660
28,739
6,921
14,071
26,211
1,938
28,438
22,128
3,517
3,045
1,442
1,417
1,303
1,301
1,215
1,118
1,078
1,059
1,054
1,038
1,004
974
24,900
388
17,635
19,915
1,288
1,922
748
575
675
847
792
54
653
683
608
527
516
445
1,311
1,550
10,803
2,213
2,229
1,123
694
842
628
454
423
1,064
425
376
446
511
488
529
1,311
1,721
18,480
2,213
2,506
1,102
694
1,004
510
703
429
155
597
381
779
503
470
659
Vehicles
Items having book value of
more than Rs. 250,000
and cost of more than
Rs. 1,000,000
Mercedes
Mercedes S-350/M2006
T/Corolla
S/Cultus
S/Cultus
T/Corolla
T/Corolla
Items having book value of
less than Rs. 250,000
or cost of less than
Rs. 1,000,000
T/Corolla
S/Cultus
S/Cultus
S/Cultus
S/Cultus
S/Cultus
S/Cultus
H/Accord
T/Corolla
Nissan Altima 2006
Nissan Altima 2006
Toyota Corolla
Liana 1.6
Cycles / bicycles
Various
Ijarah Assets
Items having book value of
more than Rs. 250,000
and cost of more than
Rs. 1,000,000
Commercial Ijjarah - Ihsan Sons
Commercial Ijjarah - Inter Market Knit
Commercial Ijjarah - M/s Atlas Honda Limited
Commercial Ijjarah - Masood Textile
Commercial Ijjarah - National Foods Limited
IMV
Civic I-Vtech Mt
Corolla 2.O D Saloon
Toyota Premio
Corolla Altis M/T
Corolla 2.0 D Se
City Ids-I Mt (Stand
City Steermatic V Te
Lancer 1.3 Glx (5-Sp
Corolla Xli
Corolla Gli
Corolla Xli
Corolla Xli
1
Buy Back
Buy Back
Buy Back
Buy Back
Buy Back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Auction
Buy back
Buy back
Buy back
M/s UBL Insurers Ltd
Ihsan Sons
Inter Market Knit
M/s Atlas Honda Limited
Masood Textile
National Foods Limited
Khurram Hussain
Adnan Atif
Muhammad Shuaib
Taqi Muhammad
M.Babar Sharif
Syed Haider Absas Rizvi
Muhammad Abid Razzaqi
Hassun Ali Shareef
Syed Ijaz Ahmed
Danish Alvi
Tariq
Wajid Ali Memon
Syed Mubeen Ali Shah
Annexure 'C' As Referred to in Note 11.7 of
Unconcolidated Financial Statements
Disposals of operating fixed assets during the year 2012
Cost
Accumulated Book
Sale
depreciation value proceeds
--------------(Rupees in '000)--------------
Corolla Xli
Corolla Xli
City Ids-I Mt (Stand
City Ids-I Mt (Upgra
Toyota Belta
Liana 1.3 Rxi Cng
Liana 1.3 Rxi Cng
City Ids-I Mt (Stand
Corolla Gli
City Ids-I Mt (Stand
City Ids-I Mt (Stand
Liana 1.3 Rxi Cng
Cultus Vxr Cng
Vitz
Cultus Vxr Cng
Cultus Vxr Cng
Cultus Vxr Cng
Shehzore Pickup
Shehzore Pickup
Vitz
Cultus Vxl Cng
City Ids-I Mt (Stand
Alto Vxr Cng
Cultus Vxl
Alto Vxr Cng
Cultus Vxr Cng
Cultus Vxr Cng
Cultus Vxr Cng
Cultus Vxr Cng
Ravi Cng
Cultus Vxr Cng
Ravi Cng
Alto Vxr Cng
Cultus Vxr Cng
Alto Vxr Cng
Cultus Vxr Cng
Cuore Cx At
Alto Vxr Cng
Santro Gs
Alto Vxr Cng
Mehran Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cuore Cx Eco
Cultus Vxl
Mehran Vxr Cng
Cuore Cl Eco
951
950
948
948
944
934
926
921
918
912
912
894
789
769
767
759
736
734
730
729
714
706
695
695
694
685
685
683
683
670
658
656
654
651
649
638
632
632
630
624
603
592
582
573
561
561
552
543
541
538
533
482
478
477
480
656
553
564
555
552
381
235
643
453
538
435
384
345
409
445
463
461
353
448
326
367
387
357
379
400
367
68
336
110
286
224
321
322
212
212
255
325
338
263
264
279
278
254
269
217
268
273
171
2
473
473
468
292
391
370
371
369
537
677
269
441
251
334
383
414
327
289
267
268
361
258
369
328
307
328
306
283
316
602
322
546
368
427
328
316
420
420
375
299
603
254
319
309
282
283
298
274
324
270
260
311
445
445
439
264
424
343
343
341
516
255
255
413
271
455
481
457
409
292
281
322
431
323
411
365
356
331
315
290
406
612
316
649
430
545
381
288
504
504
389
431
592
224
452
302
254
254
320
268
341
289
130
344
Mode of disposal
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Buy back
Buy back
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Buy back
Buy back
Buy back
Buy back
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Buy back
Buy back
Buy back
Buy back
Insurance Claim
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Insurance Claim
Buy back
Auction
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
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Particulars of Buyers
Muhammad Tanwir Alam
Shehla Imran
Waisq Warsi
Abdul Razzak
Abdul Rehman
Muhammad Kamran Syed
Muhammad Arif Raza
Syed Ghazanfar Ali
Babar Ali Humza
Nadeem Gulzar
Nasir Gulzar
Sajjad Hussain Mahesri
Rafi Ul Qamar
Kamran Ayub
Adil Mirza
Nadia Zeeshan
Ghulam Abbas
Junaid Iqbal
Shakeel
Mohammad Arif Zakaria
Pak Kuwait Takaful Co. Ltd
Muhammad Soomer Panhwar
Abdul Majeed Paracha
Adeel Ahmed
Asheer Iqbal Khan
Mumtaz Hasan
Salah-Ud-Din
Mohammad Faisal Siddiqui
Wasique Ali Pirzada
Pak Qatar Takaful Co. Ltd
Mirza Azeem Baig
Danish Alvi
Javaid Akhtar Siddiqi
Zakir Hussain Shah
Kamran Haider
K.S. Karamat Ullah
Maqbool Ahmed
Safdar Hussain
Shahina Midhat
Murtaza Abbas Manekia
Kamran Muhammad Elyas
Muhammad Rizwan
Azam Riaz Siddiqui
Muhammad Waqas Jafri
Muhammad Asif
Nafees Akhtar
Zaheer Uddin Qamar
Syed Adeel Hussain
Safdar Hussain Bhatti
Abdul Sami
Sajjid Kamran
Abdul Aleem
Annexure 'C' As Referred to in Note 11.7 of
Unconcolidated Financial Statements
Disposals of operating fixed assets during the year 2012
Cost
Accumulated Book
Sale
depreciation value proceeds
--------------(Rupees in '000)--------------
Mode of disposal
993
985
979
976
1,049
966
961
960
912
911
911
907
878
742
709
692
689
687
686
686
675
667
662
658
658
657
654
653
644
631
630
624
609
602
592
589
589
586
585
585
583
581
581
580
578
574
573
571
569
568
566
566
565
565
564
563
562
561
560
559
Buy back
Buy back
Insurance Claim
Buy back
Particulars of Buyers
Items having book value of
less than Rs. 250,000
or cost of less than
Rs. 1,000,000
Corolla Xli
Corolla Xli
Corolla Xli
Corolla Xli
Corolla Gli
City Vario Cvt (Stan
Liana 1.6
Corolla Xli
City Ids-I Mt (Stand
City Ids-I Mt (Stand
City Ids-I Mt (Stand
City Ids-I Mt (Stand
Cultus Vxr Cng
Shehzore Pickup
Shehzore Pickup
Cultus Vxr Cng
Cultus Vxr Cng
Platz
Cultus Vxr Cng
Cultus Vxr Cng
Alto Vxr Cng
Cultus Vxr Cng
Alto Vxr Cng
Mehran Vxr Cng
Cultus Vxr Cng
Cultus Vxr Cng
Cultus Vxl
Cultus Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cultus Vxr
Cultus Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Bolan Cng Std
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cuore Cx Eco
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cuore Cx Eco
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Bolan Cng Std
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cuore Cx Eco
825
779
780
765
848
802
800
798
756
755
766
684
697
493
574
503
472
499
563
453
436
477
484
480
530
522
471
518
402
435
487
378
482
373
484
357
433
391
349
464
349
368
427
412
478
468
405
395
465
357
335
351
416
442
397
442
457
406
430
324
3
168
206
199
211
201
164
161
162
156
156
145
223
181
249
135
189
217
188
123
233
239
190
178
178
128
135
183
135
242
196
143
246
127
229
108
232
156
195
236
121
234
213
154
168
100
106
168
176
104
211
231
215
149
123
167
121
105
155
130
235
140
204
461
183
201
136
134
134
128
128
132
195
165
272
135
245
228
160
95
228
311
190
230
150
106
126
167
163
268
172
115
315
112
241
94
516
340
217
273
115
268
241
169
202
79
78
215
191
76
232
238
253
128
103
185
105
76
138
102
250
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Buy back
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Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
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Buy back
Buy back
Buy back
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Buy back
Buy back
Buy back
Buy back
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Buy back
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Buy back
Buy back
Buy back
Muhammad Shoaib Khan
Sheikh Mohammad Rizwan
Pak Kuwait Takaful Co. Ltd
Zia-Ur-Rehman
Rehan Rahat Khan
Nadeem Ansari
Dada Bhoy Rashid Ahmed
Imran Qureshi
Mustafa Waris
Asim Siddique
Syed Ilyas Ali Naqvi
Alamgir Alam
Turhan Baigh Muhammad
Haji Sabir Hussain Bhatti
Irfan Jalil Qazi
Qamar Khan
Abdul Wahab
Syed Zahed Rasheed
Nooruddin
Rashid Ahmed
Syed Adil Sohail
Muhammad Saeed
Gul Faraz Khan
Mohammad Ikram
Shafaat Hussain Durrani
Khurram Abbasi
Danish Fareed
Muhammad Imran
Shahid Akhtar Alvi
Waheed Murad
Anita Ali
Atif Sharif
Shamreena Hashmi
Rabbia Khanum
Tassadaq Abbas
Muhammad Aslam
Sami Ur Rehman
Ghani Rehman
Danish Hameed Khan
Kashan Shahid
Muhammad Salman Yar Khan
Syed Mazahir Hussain
Zehra Imtiaz
Abdul Sattar
Arshad Nadeem
Zakir Ali
Malik Muhammad Irfan
Momeet Iqbal
Mohammad Sohail Qureshi
M Rafiq Kasmani
Asma Talat
Imran Ali
S. Arif Raza Zaidi
Maqsood Hussain
Iftikhar Ahmed
Muhammad Shoaib
Nasir Abbas
Ashiq Ali Khan
Bharat Lal
Shamsa Khanam
Annexure 'C' As Referred to in Note 11.7 of
Unconcolidated Financial Statements
Disposals of operating fixed assets during the year 2012
Cost
Accumulated Book
Sale
depreciation value proceeds
--------------(Rupees in '000)--------------
Cuore Cx Eco
Cuore Cx Eco
Cuore Cx At
Cuore Cl Std
Alto Vxr Cng
Alto Vxr Cng
Alto Vxr Cng
Cuore Cx Eco
Alto Vxr Cng
Cuore Cx Eco
Cuore Cx Eco
Cuore Cx At
Alto Vxr Cng
Cuore Cx At
Cuore Cx Eco
Cuore Cx At
Bolan Cng Std
Bolan Cng A-C
Bolan Cng A-C
Bolan Cng Std
Bolan Cng Std
Alto Vx Cng
Cuore Cx Eco
Cultus Vxl
Mehran Vxr Cng
Mehran Vxr Cng
Cultus Vxr
Bolan Cng Std
Ravi Cng
Bolan Cng Std
Alto Vx
Cuore Cl Eco
Ravi Cng
Ravi Cng
Mehran Vxr Cng
Mehran Vxr Cng
Bolan Cng Std
Bolan Cng Std
Bolan Cng Std
Mehran Vxr Cng
Mehran Vxr Cng
Mehran Vx Cng
Cuore Cl Std
Santro Club Gv
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx Cng
Ravi Cng
Ravi Cng
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx Cng
Mehran Vx
Ravi Cng
Mehran Vxr
Mehran Vx
Intangibles
Items having book value of less
than Rs. 250,000 or cost of
less than Rs. 1,000,000
Total
558
549
549
548
546
546
546
544
543
541
541
540
536
533
531
513
504
499
499
479
479
479
477
469
466
461
460
460
459
459
457
454
451
450
449
444
443
442
441
441
438
432
423
418
413
412
406
405
403
403
396
388
385
378
378
375
371
334
302
204,910
456
372
448
350
468
467
332
439
457
425
371
329
416
354
407
347
375
421
294
251
368
387
377
311
238
267
250
371
371
329
300
303
286
354
254
317
374
316
372
354
252
350
205
272
336
276
325
230
232
306
268
231
276
320
284
244
302
254
224
141,761
102
177
101
198
78
79
214
105
86
116
170
211
120
179
124
166
129
78
205
228
111
92
100
158
228
194
210
89
88
130
157
151
165
96
195
127
69
126
69
87
186
82
218
146
77
136
81
175
171
97
128
157
109
58
94
131
69
80
78
63,149
5,344
5,136
208
363,925
290,689
73,236
4
Mode of disposal
75
149
118
213
78
78
208
76
92
99
149
242
135
196
96
179
115
71
214
200
84
64
100
158
301
191
222
61
60
102
152
151
191
80
211
98
63
125
63
59
202
82
287
116
76
109
53
175
178
69
140
153
109
53
89
153
69
57
54
72,512
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Insurance Claim
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
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-
Write-Off
97,907
Particulars of Buyers
Maqbool Ahmed
Saif-Ur-Rahman Gazdhar
Khalid Khan
Shahid Roofi Khan
Khalid Mehmood Khan
Shahid Ali Khan
Pak Kuwait Takaful Co. Ltd
Dr.Mukesh Kumar
Ilyas Farooq
Sunita Sheral
Farrukh Saeed
Noman Ali
Syed Rizwan Hussain Jafery
Farah Shaukat
Zaibunnisa
Muahmmad Adnan Siddiqui
Waseem Mian
Waqas Arshad
Syed Mohammad Faisal
Mohammad Mujahid
Rashid Saeed
Ghulam Hanif
Muhammad Farhan
Syed Muhammad Kazim Kazmi
Muhammad Aqleem
Urooj Uddin Mahmood
Ali Muhammad Memon
Mohd Furqan Jamil
Saima Haseeb
S M Saleem
Rizwan Ul Haq Faisal
Aziz
Manzoor Hussain
Noor Muhammad
Syed Haseeb Ahmed
Syed Zeeshan Ali Jaferi
Rasheed Ahmed Siddiqui
Muhammad Saleem
Gulam Haider
Muhammad Zeeshan
Maqsood Aijaz Kehar
Muhammad Waqas Khan
Tauseef Ahmed Siddiqui
Syeda Sadia Habib
Mohammad Aslam Abdul Sattar
Mehboob Ali
Syed Wajahat Hussain Hashmi
Muhammad Shahbaz Alam
Dilip Kumar
Gohar Abbas
Syed Saleem
Sami-Ul-Bari
Afaq Hussain
Mohammad Farrukh Khan
Nuzhat Nizamuddin
Syed Faiz Ul Haque
Muhammad Nadeem Ahmed Khan
Muhammad Umair Farooqui
Muhammad Talha Mustafa
Annexure 'D' of the Bank's Unconsolidated Financial Statements
Guidelines for mapping of Business Lines
Segment Reporting
A segment is a distinguishable component of the Bank that is engaged either in providing particular
products or services (business segment), or in providing products or services within a particular economic
environment (geographical segment), which is subject to risks and rewards that are different from those of
other segments.
Business segments
(a) Corporate finance
Corporate finance includes services provided in connection with mergers and acquisitions, project finance
and the underwriting / arrangement of debt and equity instruments through syndications, Initial Public
Offerings and private placements.
(b) Trading and sales
Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities,
lending and borrowings and derivatives for hedging and market making.
(c) Retail banking
Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless
banking.
(d) Commercial banking
Commercial banking includes project finance, working capital finance, trade finance, import and export,
factoring, leasing, lending, deposits and guarantees.
(e) Others
Others includes functions which cannot be classified in any of the above segments.