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Condensed
Financial Information for the Period Ended September 30, 2011
Interim
Statement of Changes in Equity 7
Statement of Comprehensive Income 6
Corporate Information
Directors’ Review
1
2
Statement of Financial Position 4
Profit and Loss Account 5
Cash Flow Statement 8
Notes to the Financial Statements 9
for the Period Ended September 30, 2011
Statement of Changes in Equity 7
Statement of Comprehensive Income 6
Corporate Information
Directors’ Review
1
2
Statement of Financial Position 4
Profit and Loss Account 5
Cash Flow Statement 8
Notes to the Financial Statements 9
for the Period Ended September 30, 2011
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
33
DIRECTORS’ REVIEW
On behalf of the Board of Directors, I am pleased to present the financial statements of the Bank for the period ended September 30, 2011. The results are inclusive of Islamic Banking Operations.
Financial HighlightsThe financial results of the Bank of Khyber for the period ended September 30, 2011 are as under:
(Rs. in million)
Operating Profit 1,158
Provision against non- performing advances – Net (8)
Provision against diminution in value of investments – Net (31)
Other Provision (19)
Profit before taxation 1,100
Taxation (357)
Profit after tax 743
Total Assets 71,848
Advances (Gross) 24,638
Investments (Net) 41,548
Deposits 40,111
Financial OverviewThe recent decrease in SBP Policy rate will definitely have its impact on the economy which subsequently plays its role not only to reduce inflation but to give relief to the masses by reduction in prices of food items. Although the security conditions coupled with post-flood scenario, limited agricultural output and price hike with high inflation rate have marred the first quarter (July – September) of the fiscal year 2011 – 2012 to a certain extent however, the Bank has shown remarkable increase in mark-up earned and managed to register a pre-tax profit of Rs.1,100 million, an increase of 56% as compared with the half yearly results. The after tax profit stood at Rs.743 million. The future profit of the Bank however, depends on markup earned and provision on NPLs, which might show variation due to reduced discount rate and additional provision on NPLs, if any.
It may also be noted that the State Bank of Pakistan through its BSD Circular No. 1 dated October 21, 2011 has issued revised instructions on provisioning against classified assets. The management is in the process of determining the impact of this Circular therefore, no effects have been taken in these Accounts.
The deposits as well as advances maintained their growth with minor changes whereas Investments have shown a significant rise from Rs.29,341 million as on June 30, 2011 to Rs.41,548 million for the period under review thus depicting an increase of 42%.
Future OutlookPakistan's economy faces considerable challenges, as the recent torrential rains with the effects of last year devastating floods has hit the agricultural output and damaged the infrastructure badly.
Board of Directors
Attaullah Khan ChairmanSahibzada Saeed AhmadMuhammad AsifMuhammad Maqsood KhanMaqsood Ismail Mir Javed HashmatAmjad Pervez
Managing Director / CEO
Bilal Mustafa
Audit Committee
Amjad Pervez ChairmanSahibzada Saeed AhmadMuhammad AsifMuhammad Maqsood Khan
Chief Financial Officer
Rahat Gul
Company Secretary
Zahid Sahibzada
Registered Office / Head Office
The Bank of Khyber, 24-The Mall, Peshawar Cantt.UAN# 00-92-91-111 95 95 95URL: www.bok.com.pk
Auditors
Deloitte M. Yousaf Adil Saleem & Co.Chartered Accountants
Legal Advisors
Mr. Nisar Ahmed Khan Advocate, Peshawar
M/s. Mohsin Tayebaly & Co., Karachi
Registrar and Share Registration Office
THK Associates (Pvt) LtdGround Floor, State Life Building No. 3Dr. Ziauddin Ahmed Road Karachi – 75530. Pakistan.
21
CORPORATE INFORMATION
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
33
DIRECTORS’ REVIEW
On behalf of the Board of Directors, I am pleased to present the financial statements of the Bank for the period ended September 30, 2011. The results are inclusive of Islamic Banking Operations.
Financial HighlightsThe financial results of the Bank of Khyber for the period ended September 30, 2011 are as under:
(Rs. in million)
Operating Profit 1,158
Provision against non- performing advances – Net (8)
Provision against diminution in value of investments – Net (31)
Other Provision (19)
Profit before taxation 1,100
Taxation (357)
Profit after tax 743
Total Assets 71,848
Advances (Gross) 24,638
Investments (Net) 41,548
Deposits 40,111
Financial OverviewThe recent decrease in SBP Policy rate will definitely have its impact on the economy which subsequently plays its role not only to reduce inflation but to give relief to the masses by reduction in prices of food items. Although the security conditions coupled with post-flood scenario, limited agricultural output and price hike with high inflation rate have marred the first quarter (July – September) of the fiscal year 2011 – 2012 to a certain extent however, the Bank has shown remarkable increase in mark-up earned and managed to register a pre-tax profit of Rs.1,100 million, an increase of 56% as compared with the half yearly results. The after tax profit stood at Rs.743 million. The future profit of the Bank however, depends on markup earned and provision on NPLs, which might show variation due to reduced discount rate and additional provision on NPLs, if any.
It may also be noted that the State Bank of Pakistan through its BSD Circular No. 1 dated October 21, 2011 has issued revised instructions on provisioning against classified assets. The management is in the process of determining the impact of this Circular therefore, no effects have been taken in these Accounts.
The deposits as well as advances maintained their growth with minor changes whereas Investments have shown a significant rise from Rs.29,341 million as on June 30, 2011 to Rs.41,548 million for the period under review thus depicting an increase of 42%.
Future OutlookPakistan's economy faces considerable challenges, as the recent torrential rains with the effects of last year devastating floods has hit the agricultural output and damaged the infrastructure badly.
Board of Directors
Attaullah Khan ChairmanSahibzada Saeed AhmadMuhammad AsifMuhammad Maqsood KhanMaqsood Ismail Mir Javed HashmatAmjad Pervez
Managing Director / CEO
Bilal Mustafa
Audit Committee
Amjad Pervez ChairmanSahibzada Saeed AhmadMuhammad AsifMuhammad Maqsood Khan
Chief Financial Officer
Rahat Gul
Company Secretary
Zahid Sahibzada
Registered Office / Head Office
The Bank of Khyber, 24-The Mall, Peshawar Cantt.UAN# 00-92-91-111 95 95 95URL: www.bok.com.pk
Auditors
Deloitte M. Yousaf Adil Saleem & Co.Chartered Accountants
Legal Advisors
Mr. Nisar Ahmed Khan Advocate, Peshawar
M/s. Mohsin Tayebaly & Co., Karachi
Registrar and Share Registration Office
THK Associates (Pvt) LtdGround Floor, State Life Building No. 3Dr. Ziauddin Ahmed Road Karachi – 75530. Pakistan.
21
CORPORATE INFORMATION
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
The surge in international oil prices has also played havoc with the economies of the majority of the under developed countries including Pakistan. However, due to the timely monetary measures taken by the State Bank of Pakistan, the inflation has come down to 10.5 percent from 13.3 percent in June, 2011. Stocks have also shown buoyancy which will definitely augment investors' confidence. During the quarter (July – September), the overseas Pakistani workers remitted an amount of $3,297 million showing an impressive growth of 24.60 % over the same period of last year.
At the end of the quarter under review, the Bank is operating with 53 branches, 4 sub-branches and 3 booths throughout the country out of which 21 branches are functioning as dedicated Islamic Banking Branches. In order to further strengthen its customer relationship and for maximum and effective outreach, the Bank after receiving permission of the central bank, is in the process of opening 12 new branches in the country (some of the branches have already been opened) which will take the total to 62 branches for the year ending 2011. The branch expansion is likely to translate into increase in profitability during the coming year.
As on September 30, 2011, the post Right Issue paid-up capital of the Bank stood at Rs.8 billion. The Government being the major shareholder has subscribed its entitlement of Right Shares and also taken up the unsubscribed portion of the Right Issue as per its commitment. The Bank stands fully compliant with the Minimum Capital Requirements of the State Bank of Pakistan upto year end 2011.
Credit RatingThe JCR-VIS Credit Rating Company Limited has maintained the long term and the short term ratings of the Bank to “A-“ (Single A Minus) and “A-2” (A-Two) respectively.
The Pakistan Credit Rating Agency Limited (PACRA) has also maintained long term entity rating of the Bank to “A-“ (Single A Minus) and short term entity rating at “A2” (A Two).
The ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. Rating Outlook by both the companies is “Positive”.
Acknowledgement The Board would like to thank the State Bank of Pakistan and other regulatory authorities for their guidance and support. We are also grateful to our valued customers for their patronage and continued confidence in the Bank.
For and on behalf of the Board of Directors
Bilal MustafaPeshawar: October 28, 2011 Managing Director
43
Managing Director Director Director Director
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2011
(Un-audited) (Audited)
September 30, December 31,
Note 2011 2010
ASSETS
Cash and balances with treasury banks 2,335,586 5,079,720
Balances with other banks 1,440,232
1,502,684
Lendings to financial institutions 5 1,260,427 2,562,093
Investments 6 41,547,838
19,852,730
Advances 7 21,659,807 18,238,333
Operating fixed assets 8 1,285,238 1,121,554
Deferred tax asset - net 9 237,622
443,320
Other assets 2,081,616
1,993,869
71,848,366
50,794,303
LIABILITIES
Bills payable 515,852
280,665
Borrowings 18,759,028
2,894,759
Deposits and other accounts 10 40,111,179
36,981,351
Sub-ordinated loans - -
Liabilities against assets subject to finance lease -
-
Deferred tax liabilities -
-
Other liabilities 2,191,293
1,237,155
61,577,352
41,393,930
NET ASSETS 10,271,014
9,400,373
REPRESENTED BY
Share capital 8,228,001
5,004,001
Reserves 696,677
548,039
Unappropriated profit 646,630
52,079
9,571,308 5,604,119
Advance against shares subscription 206 3,224,000
9,571,514 8,828,119
Surplus on revaluation of assets-net of tax 11 699,500 572,254
10,271,014 9,400,373
CONTINGENCIES AND COMMITMENTS 12
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Rupees in '000'
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
The surge in international oil prices has also played havoc with the economies of the majority of the under developed countries including Pakistan. However, due to the timely monetary measures taken by the State Bank of Pakistan, the inflation has come down to 10.5 percent from 13.3 percent in June, 2011. Stocks have also shown buoyancy which will definitely augment investors' confidence. During the quarter (July – September), the overseas Pakistani workers remitted an amount of $3,297 million showing an impressive growth of 24.60 % over the same period of last year.
At the end of the quarter under review, the Bank is operating with 53 branches, 4 sub-branches and 3 booths throughout the country out of which 21 branches are functioning as dedicated Islamic Banking Branches. In order to further strengthen its customer relationship and for maximum and effective outreach, the Bank after receiving permission of the central bank, is in the process of opening 12 new branches in the country (some of the branches have already been opened) which will take the total to 62 branches for the year ending 2011. The branch expansion is likely to translate into increase in profitability during the coming year.
As on September 30, 2011, the post Right Issue paid-up capital of the Bank stood at Rs.8 billion. The Government being the major shareholder has subscribed its entitlement of Right Shares and also taken up the unsubscribed portion of the Right Issue as per its commitment. The Bank stands fully compliant with the Minimum Capital Requirements of the State Bank of Pakistan upto year end 2011.
Credit RatingThe JCR-VIS Credit Rating Company Limited has maintained the long term and the short term ratings of the Bank to “A-“ (Single A Minus) and “A-2” (A-Two) respectively.
The Pakistan Credit Rating Agency Limited (PACRA) has also maintained long term entity rating of the Bank to “A-“ (Single A Minus) and short term entity rating at “A2” (A Two).
The ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments. Rating Outlook by both the companies is “Positive”.
Acknowledgement The Board would like to thank the State Bank of Pakistan and other regulatory authorities for their guidance and support. We are also grateful to our valued customers for their patronage and continued confidence in the Bank.
For and on behalf of the Board of Directors
Bilal MustafaPeshawar: October 28, 2011 Managing Director
43
Managing Director Director Director Director
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT SEPTEMBER 30, 2011
(Un-audited) (Audited)
September 30, December 31,
Note 2011 2010
ASSETS
Cash and balances with treasury banks 2,335,586 5,079,720
Balances with other banks 1,440,232
1,502,684
Lendings to financial institutions 5 1,260,427 2,562,093
Investments 6 41,547,838
19,852,730
Advances 7 21,659,807 18,238,333
Operating fixed assets 8 1,285,238 1,121,554
Deferred tax asset - net 9 237,622
443,320
Other assets 2,081,616
1,993,869
71,848,366
50,794,303
LIABILITIES
Bills payable 515,852
280,665
Borrowings 18,759,028
2,894,759
Deposits and other accounts 10 40,111,179
36,981,351
Sub-ordinated loans - -
Liabilities against assets subject to finance lease -
-
Deferred tax liabilities -
-
Other liabilities 2,191,293
1,237,155
61,577,352
41,393,930
NET ASSETS 10,271,014
9,400,373
REPRESENTED BY
Share capital 8,228,001
5,004,001
Reserves 696,677
548,039
Unappropriated profit 646,630
52,079
9,571,308 5,604,119
Advance against shares subscription 206 3,224,000
9,571,514 8,828,119
Surplus on revaluation of assets-net of tax 11 699,500 572,254
10,271,014 9,400,373
CONTINGENCIES AND COMMITMENTS 12
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Rupees in '000'
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
65
Managing Director Director Director Director
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Three months Nine months Three months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
Note 2011 2011 2010 2010
Mark-up / return / interest earned 2,004,710 5,046,600 1,196,378 2,983,937Mark-up / return / interest expensed 1,358,247 3,291,866 839,311 2,121,237
Net mark-up / interest income 646,463 1,754,734 357,067 862,700
Provision against non-performing
loans and advances - net 7.2 61,383
7,770
221,916 70,221Provision for diminution in the value of investments - net 6.1 3,215
30,825
28,832 182,344
Bad debts written off directly -
-
- -
64,598
38,595
250,748 252,565
Net mark-up / interest income after provisions 581,865
1,716,139
106,319 610,135
NON MARK-UP / INTEREST INCOME
Fee, commission and brokerage income 43,729
150,613
31,431 106,434
Dividend income 62,332
145,608 20,823 61,990
Income from dealing in foreign currencies 13,737 36,425 13,040 23,878Gain on sale of securities - net 24,123
44,091
3,650 204,774
Unrealised gain on revaluation ofinvestments classified as held-for-trading 23,649
6,024
3,779 872
Other income 13,308
46,796
20,235 57,624
Total non mark-up / interest income 180,878
429,557
92,958 455,572
762,743
2,145,696
199,277 1,065,707
NON MARK-UP / INTEREST EXPENSES
Administrative expenses 360,031
1,004,027
233,404 679,200Other provisions / write offs -
19,409
(5,705) (5,705)
Other charges 8,246
22,354
(3,720) 9,360
Total non mark-up / interest expenses 368,277
1,045,790
223,979 682,855
394,466 1,099,906
(24,702) 382,852Extra ordinary / unusual item - - - -
PROFIT / (LOSS) BEFORE TAXATION 394,466 1,099,906 (24,702) 382,852
Taxation
Current (85,967) (232,649) (29,031) (92,249)Prior - - - -
Deferred (25,160) (124,068) 80,594 (11,958)
(111,127) (356,717) 51,563 (104,207)
PROFIT AFTER TAXATION 283,339 743,189 26,861 278,645
Earnings per share - Basic and Diluted (in Rupees) 0.47 1.38 0.05 0.56
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
------------------------------------Rupees in '000'------------------------------------
Managing Director Director Director Director
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Three months Nine months Three months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2011 2011 2010 2010
Profit for the period 283,339
743,189
26,861 278,645
Other comprehensive income -
-
- -
Total comprehensive income for the period 283,339 743,189 26,861 278,645
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Surplus / (deficit) arising on revaluation of assets (refer note 11) has been reportedin accordance with the requirements
of the Companies Ordinance, 1984, and the directives of the SBP in separate account below equity.
-----------------------------Rupees in '000'------------------------------
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
65
Managing Director Director Director Director
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Three months Nine months Three months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
Note 2011 2011 2010 2010
Mark-up / return / interest earned 2,004,710 5,046,600 1,196,378 2,983,937Mark-up / return / interest expensed 1,358,247 3,291,866 839,311 2,121,237
Net mark-up / interest income 646,463 1,754,734 357,067 862,700
Provision against non-performing
loans and advances - net 7.2 61,383
7,770
221,916 70,221Provision for diminution in the value of investments - net 6.1 3,215
30,825
28,832 182,344
Bad debts written off directly -
-
- -
64,598
38,595
250,748 252,565
Net mark-up / interest income after provisions 581,865
1,716,139
106,319 610,135
NON MARK-UP / INTEREST INCOME
Fee, commission and brokerage income 43,729
150,613
31,431 106,434
Dividend income 62,332
145,608 20,823 61,990
Income from dealing in foreign currencies 13,737 36,425 13,040 23,878Gain on sale of securities - net 24,123
44,091
3,650 204,774
Unrealised gain on revaluation ofinvestments classified as held-for-trading 23,649
6,024
3,779 872
Other income 13,308
46,796
20,235 57,624
Total non mark-up / interest income 180,878
429,557
92,958 455,572
762,743
2,145,696
199,277 1,065,707
NON MARK-UP / INTEREST EXPENSES
Administrative expenses 360,031
1,004,027
233,404 679,200Other provisions / write offs -
19,409
(5,705) (5,705)
Other charges 8,246
22,354
(3,720) 9,360
Total non mark-up / interest expenses 368,277
1,045,790
223,979 682,855
394,466 1,099,906
(24,702) 382,852Extra ordinary / unusual item - - - -
PROFIT / (LOSS) BEFORE TAXATION 394,466 1,099,906 (24,702) 382,852
Taxation
Current (85,967) (232,649) (29,031) (92,249)Prior - - - -
Deferred (25,160) (124,068) 80,594 (11,958)
(111,127) (356,717) 51,563 (104,207)
PROFIT AFTER TAXATION 283,339 743,189 26,861 278,645
Earnings per share - Basic and Diluted (in Rupees) 0.47 1.38 0.05 0.56
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
------------------------------------Rupees in '000'------------------------------------
Managing Director Director Director Director
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Three months Nine months Three months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2011 2011 2010 2010
Profit for the period 283,339
743,189
26,861 278,645
Other comprehensive income -
-
- -
Total comprehensive income for the period 283,339 743,189 26,861 278,645
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Surplus / (deficit) arising on revaluation of assets (refer note 11) has been reportedin accordance with the requirements
of the Companies Ordinance, 1984, and the directives of the SBP in separate account below equity.
-----------------------------Rupees in '000'------------------------------
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
87
Managing Director Director Director Director
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Nine months Nine months
ended ended
September 30, September 30,
2011 2010
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 1,099,906 382,852Less: Dividend income 145,608 61,990
954,298 320,862Adjustments for non-cash charges:
Depreciation 50,861 21,752Amortization 2,501 333Provision against non-performing advances-Net 7,770
70,221Provision for diminution in the value of investments-Net 30,825
182,344Provision against other assets 19,409
(5,705)Provision for Workers Welfare Fund 22,083
8,934Unrealized gain on revaluation of investments classified as held-for-trading (6,024)
(872)
Gain on sale of fixed assets - net (1,399)
(6,381)
126,026
270,626
1,080,324
591,488
(Increase) / decrease in operating assets:
Lendings to financial institutions 1,301,666
1,665,310
Net investments in held-for-trading securities (7,081,115)
279,708 Advances (3,429,244)
(7,875,580)
Others assets (excluding advance taxation) (361,385)
(477,072)
(9,570,078)
(6,407,634)
Increase / (decrease) in operating liabilities:
Bills payable 235,187
21,301
Borrowings 15,864,269 3,153,770 Deposits and other accounts 3,129,828 1,942,050
Other liabilities (excluding current taxation) 932,055
(20,407)
20,161,339
5,096,714
Cash generated from operations 11,671,585
(719,432)
Income tax refund / (paid) - net 21,580
(97,163)
Net cash generated from operating activities 11,693,165
(816,595)
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in available-for-sale securities (14,470,746)
77,001
Net investments in held-to-maturity securities 40,828
539,466Dividend received 145,608
61,990Investments in operating fixed assets (220,242)
(95,144)
Sale proceeds of property and equipment disposed-off 4,595 16,527
Net cash used in investing activities (14,499,957) 599,840
CASH FLOW FROM FINANCING ACTIVITIES
Advance against shares subscription 206 -
Net cash flows from financing activities 206
(Decrease) / increase in cash and cash equivalents (2,806,586) (216,755)
Cash and cash equivalents at beginning of the period 6,582,404 3,945,800
Cash and cash equivalents at end of the period 3,775,818 3,729,045
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Rupees in '000
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Balance as at January 1, 2010 5,004,001 435,342 (398,710) 5,040,633
Comprehensive income
Profit after taxation for the nine months
ended September 30, 2010 -
-
278,645
278,645
Other comprehensive income - net of tax -
-
-
-
-
-
278,645
278,645
Transfer to statutory reserve -
55,729
(55,729)
-
Balance as at September 30, 2010 5,004,001
491,071
(175,794)
5,319,278
Comprehensive income
Profit after taxation for the three months
ended December 31, 2010 -
-
284,841
284,841
Other comprehensive income - net of tax -
-
-
-
-
-
284,841
284,841
Transfer to statutory reserve - 56,968 (56,968) -
Balance as at December 31, 2010 5,004,001
548,039
52,079
5,604,119
Right issue of share capital 3,224,000
3,224,000
Comprehensive income
Profit after taxation for the Nine months
ended September 30, 2011 - - 743,189 743,189
Other comprehensive income - net of tax - - - -
- - 743,189 743,189
Transfer to statutory reserve - 148,638 (148,638) -
Balance as at September 30, 2011 8,228,001 696,677 646,630 9,571,308
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
--------------------------------Rupees in '000'----------------------------------
Share
capital
Statutory
reserve
(Accumulated
loss) /
Unappropriated
profit
Total
Managing Director Director Director Director
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
87
Managing Director Director Director Director
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Nine months Nine months
ended ended
September 30, September 30,
2011 2010
CASH FLOW FROM OPERATING ACTIVITIES
Profit before taxation 1,099,906 382,852Less: Dividend income 145,608 61,990
954,298 320,862Adjustments for non-cash charges:
Depreciation 50,861 21,752Amortization 2,501 333Provision against non-performing advances-Net 7,770
70,221Provision for diminution in the value of investments-Net 30,825
182,344Provision against other assets 19,409
(5,705)Provision for Workers Welfare Fund 22,083
8,934Unrealized gain on revaluation of investments classified as held-for-trading (6,024)
(872)
Gain on sale of fixed assets - net (1,399)
(6,381)
126,026
270,626
1,080,324
591,488
(Increase) / decrease in operating assets:
Lendings to financial institutions 1,301,666
1,665,310
Net investments in held-for-trading securities (7,081,115)
279,708 Advances (3,429,244)
(7,875,580)
Others assets (excluding advance taxation) (361,385)
(477,072)
(9,570,078)
(6,407,634)
Increase / (decrease) in operating liabilities:
Bills payable 235,187
21,301
Borrowings 15,864,269 3,153,770 Deposits and other accounts 3,129,828 1,942,050
Other liabilities (excluding current taxation) 932,055
(20,407)
20,161,339
5,096,714
Cash generated from operations 11,671,585
(719,432)
Income tax refund / (paid) - net 21,580
(97,163)
Net cash generated from operating activities 11,693,165
(816,595)
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in available-for-sale securities (14,470,746)
77,001
Net investments in held-to-maturity securities 40,828
539,466Dividend received 145,608
61,990Investments in operating fixed assets (220,242)
(95,144)
Sale proceeds of property and equipment disposed-off 4,595 16,527
Net cash used in investing activities (14,499,957) 599,840
CASH FLOW FROM FINANCING ACTIVITIES
Advance against shares subscription 206 -
Net cash flows from financing activities 206
(Decrease) / increase in cash and cash equivalents (2,806,586) (216,755)
Cash and cash equivalents at beginning of the period 6,582,404 3,945,800
Cash and cash equivalents at end of the period 3,775,818 3,729,045
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
Rupees in '000
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Balance as at January 1, 2010 5,004,001 435,342 (398,710) 5,040,633
Comprehensive income
Profit after taxation for the nine months
ended September 30, 2010 -
-
278,645
278,645
Other comprehensive income - net of tax -
-
-
-
-
-
278,645
278,645
Transfer to statutory reserve -
55,729
(55,729)
-
Balance as at September 30, 2010 5,004,001
491,071
(175,794)
5,319,278
Comprehensive income
Profit after taxation for the three months
ended December 31, 2010 -
-
284,841
284,841
Other comprehensive income - net of tax -
-
-
-
-
-
284,841
284,841
Transfer to statutory reserve - 56,968 (56,968) -
Balance as at December 31, 2010 5,004,001
548,039
52,079
5,604,119
Right issue of share capital 3,224,000
3,224,000
Comprehensive income
Profit after taxation for the Nine months
ended September 30, 2011 - - 743,189 743,189
Other comprehensive income - net of tax - - - -
- - 743,189 743,189
Transfer to statutory reserve - 148,638 (148,638) -
Balance as at September 30, 2011 8,228,001 696,677 646,630 9,571,308
The annexed notes 1 to 16 form an integral part of these condensed interim financial information.
--------------------------------Rupees in '000'----------------------------------
Share
capital
Statutory
reserve
(Accumulated
loss) /
Unappropriated
profit
Total
Managing Director Director Director Director
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
109
1. STATUS AND NATURE OF BUSINESS1.1 The Bank of Khyber ("The Bank") was established under The Bank of Khyber Act, 1991 (N.W.F.P.
Act No. XIV of 1991) and is principally engaged in the business of commercial, investment and development banking. The Bank acquired the status of a scheduled bank in 1994. The Bank is listed on the Karachi Stock Exchange (KSE). The registered office and principal office of the Bank are situated at 24 The Mall, Peshawar Cantt, Peshawar. The Bank is operating 53 branches as at September 30, 2011 (December 31, 2010: 50 branches) including 21 (December 31, 2010: 21) Islamic Banking Branches.
1.2 The State Bank of Pakistan (SBP) through its BSD Circular No. 7 dated April 15, 2009 has prescribed that the minimum paid up capital (net of losses) for Banks shall be raised to Rs. 10 billion by the year ending December 31, 2013. This is to be achieved in a phased manner requiring Rs. 1 billion increase in paid up capital (free of losses) by the end of the each year. The paid-up capital (free of losses) of the Bank of Khyber as at December, 31 2010 was Rs. 5.004 billion.
As disclosed in note 1.2 to the annual financial statement for the year ended December 31, 2010, in accordance with the bank's plan to raise its paid up capital, a Right Issue was offered in July 2011 to the existing Shareholders in the ratio of 100:64. The Government of Khyber Pukhtunkhwa had provided firm commitment to take up any unsubcribed portion of the Right Issue . Since participation by the General Public was nominal, the Government of Khyber Pakhtunkhwa had to take up a major portion of the Issue under its guarantee. Resultantly, the Sharehlding of the Government increased to 70.20%. After the right Issue the paid up capital of the Bank has increased to Rs. 8.228 billion as on September 30, 2011.
2. BASIS OF PRESENTATION2.1 In accordance with the directives of the Federal Government regarding the shifting of the
banking system to Islamic modes, SBP has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by the 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 the respective arrangements (except for murabaha financings accounted for under Islamic Financial Accounting Standard - 1 "Murabaha") are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of markup thereon. Following the setting up of the Islamic Banking Group, the Bank also provides financing through Shariah compliant modes of financing.
2.2 The financial results of the Islamic Banking Group have been consolidated in these financial statements for reporting purpose, after eliminating the effects of intra-bank transactions and balances. The Bank is conducting Islamic Banking in 21 (December 31, 2010: 21) branches. Key financial figures of the Islamic Banking Group are disclosed in note 13 to these financial statements.
3. STATEMENT OF COMPLIANCE3.1 This condensed interim financial information for the Nine months ended September 30, 2011,
has been prepared in accordance with approved accounting standards as applicable in
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions and directives issued under 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. In case the requirements differ, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 and the directives issued by SECP and SBP shall prevail.
3.2 The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and International Accounting Standards (IAS) 40, "Investment Property" for banking companies till further instructions. Further, according to a notification of Securities and Exchange Commission of Pakistan dated April 28, 2008, IFRS 7 "Financial Instruments: Disclosure" has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of this condensed interim financial information. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP.
3.3 The disclosures made in this condensed interim financial information have been limited based on the format prescribed by the SBP vide BSD Circular Letter No. 2, dated May 12, 2004 and IAS 34 "Interim Financial Reporting" and do not include all the information required for the annual financial statements. Accordingly, this condensed interim financial information should be read in conjunction with the annual financial statements of the Bank for the year ended December 31, 2010. This condensed interim financial information is being submitted to the shareholders in accordance with section 245 of the Companies Ordinance, 1984. These are un-audited but subject to limited scope review by the auditors till June 30,2011.
4. "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS AND RISK MANAGEMENT POLICIES"The accounting policies, underlying estimates and judgments and methods of computation followed in the preparation of these condensed interim financial information are same as those applied in preparing the most recent annual financial statements of the Bank for the year ended December 31, 2010.
The financial risk management objectives and policies adopted by the Bank are consistent with that disclosed in the financial statements of the Bank for the year ended December 31, 2010.
(Un-audited) (Audited)
September
30,
December
31,
2011 2010
5. LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings 1,000,000
175,000
Repurchase agreement lendings (Reverse Repo) -
2,095,317
Placements with financial institutions 385,061
416,410
1,385,061 2,686,727
Less: Provision for doubtful placements with financial institutions (124,634) (124,634)
1,260,427 2,562,093
Rupees in '000'
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
109
1. STATUS AND NATURE OF BUSINESS1.1 The Bank of Khyber ("The Bank") was established under The Bank of Khyber Act, 1991 (N.W.F.P.
Act No. XIV of 1991) and is principally engaged in the business of commercial, investment and development banking. The Bank acquired the status of a scheduled bank in 1994. The Bank is listed on the Karachi Stock Exchange (KSE). The registered office and principal office of the Bank are situated at 24 The Mall, Peshawar Cantt, Peshawar. The Bank is operating 53 branches as at September 30, 2011 (December 31, 2010: 50 branches) including 21 (December 31, 2010: 21) Islamic Banking Branches.
1.2 The State Bank of Pakistan (SBP) through its BSD Circular No. 7 dated April 15, 2009 has prescribed that the minimum paid up capital (net of losses) for Banks shall be raised to Rs. 10 billion by the year ending December 31, 2013. This is to be achieved in a phased manner requiring Rs. 1 billion increase in paid up capital (free of losses) by the end of the each year. The paid-up capital (free of losses) of the Bank of Khyber as at December, 31 2010 was Rs. 5.004 billion.
As disclosed in note 1.2 to the annual financial statement for the year ended December 31, 2010, in accordance with the bank's plan to raise its paid up capital, a Right Issue was offered in July 2011 to the existing Shareholders in the ratio of 100:64. The Government of Khyber Pukhtunkhwa had provided firm commitment to take up any unsubcribed portion of the Right Issue . Since participation by the General Public was nominal, the Government of Khyber Pakhtunkhwa had to take up a major portion of the Issue under its guarantee. Resultantly, the Sharehlding of the Government increased to 70.20%. After the right Issue the paid up capital of the Bank has increased to Rs. 8.228 billion as on September 30, 2011.
2. BASIS OF PRESENTATION2.1 In accordance with the directives of the Federal Government regarding the shifting of the
banking system to Islamic modes, SBP has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by the 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 the respective arrangements (except for murabaha financings accounted for under Islamic Financial Accounting Standard - 1 "Murabaha") are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of markup thereon. Following the setting up of the Islamic Banking Group, the Bank also provides financing through Shariah compliant modes of financing.
2.2 The financial results of the Islamic Banking Group have been consolidated in these financial statements for reporting purpose, after eliminating the effects of intra-bank transactions and balances. The Bank is conducting Islamic Banking in 21 (December 31, 2010: 21) branches. Key financial figures of the Islamic Banking Group are disclosed in note 13 to these financial statements.
3. STATEMENT OF COMPLIANCE3.1 This condensed interim financial information for the Nine months ended September 30, 2011,
has been prepared in accordance with approved accounting standards as applicable in
NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION (UN-AUDITED)FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions and directives issued under 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. In case the requirements differ, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 and the directives issued by SECP and SBP shall prevail.
3.2 The SBP vide BSD Circular No. 10, dated August 26, 2002 has deferred the applicability of International Accounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and International Accounting Standards (IAS) 40, "Investment Property" for banking companies till further instructions. Further, according to a notification of Securities and Exchange Commission of Pakistan dated April 28, 2008, IFRS 7 "Financial Instruments: Disclosure" has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of this condensed interim financial information. However, investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP.
3.3 The disclosures made in this condensed interim financial information have been limited based on the format prescribed by the SBP vide BSD Circular Letter No. 2, dated May 12, 2004 and IAS 34 "Interim Financial Reporting" and do not include all the information required for the annual financial statements. Accordingly, this condensed interim financial information should be read in conjunction with the annual financial statements of the Bank for the year ended December 31, 2010. This condensed interim financial information is being submitted to the shareholders in accordance with section 245 of the Companies Ordinance, 1984. These are un-audited but subject to limited scope review by the auditors till June 30,2011.
4. "SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS AND RISK MANAGEMENT POLICIES"The accounting policies, underlying estimates and judgments and methods of computation followed in the preparation of these condensed interim financial information are same as those applied in preparing the most recent annual financial statements of the Bank for the year ended December 31, 2010.
The financial risk management objectives and policies adopted by the Bank are consistent with that disclosed in the financial statements of the Bank for the year ended December 31, 2010.
(Un-audited) (Audited)
September
30,
December
31,
2011 2010
5. LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings 1,000,000
175,000
Repurchase agreement lendings (Reverse Repo) -
2,095,317
Placements with financial institutions 385,061
416,410
1,385,061 2,686,727
Less: Provision for doubtful placements with financial institutions (124,634) (124,634)
1,260,427 2,562,093
Rupees in '000'
11
for the Period Ended September 30, 2011
6. INVESTMENTS
Note
Held
by bank
Given as
collateral Total
Held
by bank
Given as
collateral Total
Held-for-trading securities
Market Treasury Bills 2,420,097 4,364,834 6,784,931 - - -
Pakistan Investment Bonds 140,708 - 140,708
Sukuk certificates (GOP Ijarah) 75,825 - 75,825 - - -
Mutual Funds Units-open ended 340,157 - 340,157 - - -
Shares in listed companies 115,876
-
115,876
374,951
- 374,951
3,092,663 4,364,834 7,457,497 374,951 - 374,951
Available-for-sale securities
Market Treasury Bills 5,280,675 13,452,233
18,732,908
6,666,273
914,822 7,581,095
Pakistan Investment Bonds 3,736,139 -
3,736,139
2,480,311
635,082 3,115,393
National Investment Trust Units 6.2 54,246 - 54,246 54,246 - 54,246
Ordinary shares in listed companies 524,399
-
524,399
341,689
- 341,689
Ordinary shares in unlisted companies 80,487
-
80,487
80,487
- 80,487
Ordinary Shares of related parties
- Listed shares 59,961
-
59,961
59,961
- 59,961
- Unlisted shares 153,004
-
153,004
153,004
- 153,004
Preference shares 215,920
-
215,920
215,920
- 215,920
Listed Term Finance Certificates 925,030
-
925,030
972,366
- 972,366
Unlisted Term Finance Certificates 1,189,618
-
1,189,618
1,215,565
- 1,215,565
Mutual Funds Units-open ended 1,708,434
-
1,708,434
477,447
- 477,447
Mutual Funds Units-close ended 119,057 - 119,057 119,057 - 119,057
Sukuk certificates 5,631,799 - 5,631,799 4,274,026 -
4,274,026
19,678,769
13,452,233
33,131,002
17,110,352
1,549,904 18,660,256
Held-to-maturity securities
Pakistan Investment Bonds 908,204
-
908,204
923,677
- 923,677
Sukuk certificates 673,446
-
673,446
698,801
- 698,801
1,581,650 -
1,581,650
1,622,478
- 1,622,478
Investment at cost 24,353,082
17,817,067
42,170,149
19,107,781
1,549,904 20,657,685
Less: Provision for diminution in
value of investments 6.1 (500,317) - (500,317) (469,492) - (469,492)
Investments (net of provisions) 23,852,765 17,817,067 41,669,832 18,638,289 1,549,904 20,188,193
Unrealised gain on revaluation of
held for trading securities 6,024 - 6,024 1,431 - 1,431
(Deficit) on revaluation of available-
for-sale securities 11 (128,018) - (128,018) (277,635) (59,259) (336,894)
Total investments 23,730,771 17,817,067 41,547,838 18,362,085 1,490,645 19,852,730
-----------------------------------------------Rupees in '000'--------------------------------------------
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
for the Period Ended September 30, 2011
12
(Un-audited) (Audited)
September 30, December 31,
2011 2010
Note
6.1 Particulars of provision for diminution in value of investments
Opening balance 469,492 690,189
Charge for the period / year 6.1.1 30,880 215,341
Reversal on disposal of shares / mutual funds (55) (587,023)
30,825 (371,682)
Transferred from lending to financial institutions - 150,985
Closing balance 500,317 469,492
6.1.1
6.2 Investment in National Investment (Unit) Trust - NI(U)T
(Un-audited) (Audited)
September 30, December 31,
2011 2010
Note
7. ADVANCES
Loans, cash credits, running finances, etc
In Pakistan 23,461,776 20,404,151
Outside Pakistan - -
23,461,776 20,404,151
Net investment in ijarah:
In Pakistan 818,851 538,307
Outside Pakistan - -
818,851 538,307
Bills discounted and purchased (excluding treasury bills)
Payable in Pakistan 226,833 219,408
Payable outside Pakistan 130,648 110,167
357,481 329,575
Advances - gross 24,638,108 21,272,033
Less: Provision for non-performing advances 7.2 (2,978,301) (3,033,700)
Advances - net of provision 21,659,807 18,238,333
Rupees in '000'
This includes impairment charge of Rs. nil (December 31, 2010: 157.291 million) in respect of 'available-for-sale'
listed equity securities / mutual funds.
As fully explained in note 10.5 of the annual financial statements for the year ended December 31, 2010, the
balance represents 2,703,723 units attributable to Strategic Assets. These units are continued to be recognized as
investment in NI(U)T – Unit holders Fund, as settlement of such units is yet to be finalized. The Bank has agreed
to the redemption price of Rs 25.80 per unit based on October 13, 2010 net assets position of the fund and as
such recorded the investment on the basis of such rate at period end.
Rupees in '000'
11
for the Period Ended September 30, 2011
6. INVESTMENTS
Note
Held
by bank
Given as
collateral Total
Held
by bank
Given as
collateral Total
Held-for-trading securities
Market Treasury Bills 2,420,097 4,364,834 6,784,931 - - -
Pakistan Investment Bonds 140,708 - 140,708
Sukuk certificates (GOP Ijarah) 75,825 - 75,825 - - -
Mutual Funds Units-open ended 340,157 - 340,157 - - -
Shares in listed companies 115,876
-
115,876
374,951
- 374,951
3,092,663 4,364,834 7,457,497 374,951 - 374,951
Available-for-sale securities
Market Treasury Bills 5,280,675 13,452,233
18,732,908
6,666,273
914,822 7,581,095
Pakistan Investment Bonds 3,736,139 -
3,736,139
2,480,311
635,082 3,115,393
National Investment Trust Units 6.2 54,246 - 54,246 54,246 - 54,246
Ordinary shares in listed companies 524,399
-
524,399
341,689
- 341,689
Ordinary shares in unlisted companies 80,487
-
80,487
80,487
- 80,487
Ordinary Shares of related parties
- Listed shares 59,961
-
59,961
59,961
- 59,961
- Unlisted shares 153,004
-
153,004
153,004
- 153,004
Preference shares 215,920
-
215,920
215,920
- 215,920
Listed Term Finance Certificates 925,030
-
925,030
972,366
- 972,366
Unlisted Term Finance Certificates 1,189,618
-
1,189,618
1,215,565
- 1,215,565
Mutual Funds Units-open ended 1,708,434
-
1,708,434
477,447
- 477,447
Mutual Funds Units-close ended 119,057 - 119,057 119,057 - 119,057
Sukuk certificates 5,631,799 - 5,631,799 4,274,026 -
4,274,026
19,678,769
13,452,233
33,131,002
17,110,352
1,549,904 18,660,256
Held-to-maturity securities
Pakistan Investment Bonds 908,204
-
908,204
923,677
- 923,677
Sukuk certificates 673,446
-
673,446
698,801
- 698,801
1,581,650 -
1,581,650
1,622,478
- 1,622,478
Investment at cost 24,353,082
17,817,067
42,170,149
19,107,781
1,549,904 20,657,685
Less: Provision for diminution in
value of investments 6.1 (500,317) - (500,317) (469,492) - (469,492)
Investments (net of provisions) 23,852,765 17,817,067 41,669,832 18,638,289 1,549,904 20,188,193
Unrealised gain on revaluation of
held for trading securities 6,024 - 6,024 1,431 - 1,431
(Deficit) on revaluation of available-
for-sale securities 11 (128,018) - (128,018) (277,635) (59,259) (336,894)
Total investments 23,730,771 17,817,067 41,547,838 18,362,085 1,490,645 19,852,730
-----------------------------------------------Rupees in '000'--------------------------------------------
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
for the Period Ended September 30, 2011
12
(Un-audited) (Audited)
September 30, December 31,
2011 2010
Note
6.1 Particulars of provision for diminution in value of investments
Opening balance 469,492 690,189
Charge for the period / year 6.1.1 30,880 215,341
Reversal on disposal of shares / mutual funds (55) (587,023)
30,825 (371,682)
Transferred from lending to financial institutions - 150,985
Closing balance 500,317 469,492
6.1.1
6.2 Investment in National Investment (Unit) Trust - NI(U)T
(Un-audited) (Audited)
September 30, December 31,
2011 2010
Note
7. ADVANCES
Loans, cash credits, running finances, etc
In Pakistan 23,461,776 20,404,151
Outside Pakistan - -
23,461,776 20,404,151
Net investment in ijarah:
In Pakistan 818,851 538,307
Outside Pakistan - -
818,851 538,307
Bills discounted and purchased (excluding treasury bills)
Payable in Pakistan 226,833 219,408
Payable outside Pakistan 130,648 110,167
357,481 329,575
Advances - gross 24,638,108 21,272,033
Less: Provision for non-performing advances 7.2 (2,978,301) (3,033,700)
Advances - net of provision 21,659,807 18,238,333
Rupees in '000'
This includes impairment charge of Rs. nil (December 31, 2010: 157.291 million) in respect of 'available-for-sale'
listed equity securities / mutual funds.
As fully explained in note 10.5 of the annual financial statements for the year ended December 31, 2010, the
balance represents 2,703,723 units attributable to Strategic Assets. These units are continued to be recognized as
investment in NI(U)T – Unit holders Fund, as settlement of such units is yet to be finalized. The Bank has agreed
to the redemption price of Rs 25.80 per unit based on October 13, 2010 net assets position of the fund and as
such recorded the investment on the basis of such rate at period end.
Rupees in '000'
13
for the Period Ended September 30, 2011
14
for the Period Ended September 30, 2011
7.1
Provision Provision
Required Held
Category of classification Domestic Overseas Total
Other assets especially mentioned* 8,168 - 8,168 - -
Substandard 294,204 - 294,204 64,068 64,068
Doubtful 432,504 - 432,504 93,901 93,901
Loss 3,276,615
-
3,276,615
2,812,366
2,812,366
4,011,491
-
4,011,491
2,970,335
2,970,335
Provision Provision
Required Held
Category of classification Domestic Overseas Total
Other assets especially mentioned* 5,416
-
5,416
-
-
Substandard 412,813
-
412,813
31,543
31,543
Doubtful 178,492
-
178,492
57,031
57,031
Loss 3,520,860
-
3,520,860
2,936,109
2,936,109
4,117,581
-
4,117,581
3,024,683
3,024,683
* Other assets especially mentioned category pertains to agricultural finance only.
7.1.1
7.2 Particulars of provision against non-performing advances
Specific General Total Specific General Total
Opening balance 3,024,683 9,017 3,033,700 2,972,778 12,006 2,984,784
Charge for the period / year 243,307 - 243,307 334,067 1,248 335,315
Reversals (234,486) (1,051) (235,537) (282,162) (4,237) (286,399)
8,821 (1,051) 7,770 51,905 (2,989) 48,916
Amounts written off (63,169) - (63,169) - - -
Closing balance 2,970,335 7,966 2,978,301 3,024,683 9,017 3,033,700
--------------------------------------Rupees in '000'--------------------------------------------
Classified Advances
December 31, 2010 (Audited)
The SBP through its BSD Circular No; 1 dated October 21, 2011 has issued revised instructions on provisioning
against classified assets, allowing benefit in various slabs, yearwise ranging from 75% to 10% of FSV of eligible
collaterals/securities held against Non Performing Loans (NPL's) from the date of classification. The management
is in the process of determining the impact of this Circular, therefore, no effects have been taken in these
accounts.
The SBP through various circulars amended Prudential Regulations in respect of provisioning against non-
performing advances. The revised regulations allow the benefit of 40 percent of Forced Sale Value (FSV) of
pledged stocks and mortgaged residential, commercial and industrial properties (land and building only) held as
collateral by the Bank in determining the amount of provision against non-performing advances. Had there been
no such relaxation from SBP, the provision on the balance sheet would have been higher by Rs. 572.142 million
(2010: 604.65 million). However, the impact on profit due to the benefit of FSV is not available for payment of cash
or stock dividend.
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
------------------------------------------Rupees in '000'----------------------------------------------------
-----------------------------------------Rupees in '000'-----------------------------------------
Classified Advances
Advances include amounts aggregating to Rs. 4,011.491 (December 31, 2010: Rs. 4,117.581) million which have
been placed under non-performing status as detailed below:-
September 30, 2011 (Un-audited)
8. OPERATING FIXED ASSETS - NET
(Un-audited) (Audited)
September 30, December 31,
Note 2011 2010
9. DEFERRED TAX ASSET - NET
Deferred tax asset arising in respect of:
Provision for balances with other banks 3,510 3,510
Deficit on revaluation of investments 72,869 153,605
Provision for diminution in the value of investments 61,237 62,845
Provision for non performing loans 51,490 180,681
Provision for other assets 3,448 3,448
Provision for Workers Welfare Fund 17,770 9,947
Capital loss carried forward 22,050 26,459
Stabilization reserve 35,016 32,528
267,390 473,023
Deferred tax liability arising in respect of:
Accelerated tax depreciation (18,677) (19,506)
Surplus on revaluation of investment (11,091) (10,197)
(29,768)
(29,703)
Deferred tax asset - net 237,622
443,320
10. DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits 20,299,148
15,973,975
Savings deposits 10,914,497
13,528,160
Current accounts - non-remunerative 10.1 6,952,515
5,610,251
Call deposits 690,520
443,888
Margin and sundry deposits 727,845
675,025
39,584,525 36,231,299
Financial Institutions
Remunerative deposits 526,389 750,025
Non-remunerative deposits 265 27
526,654 750,052
40,111,179 36,981,351
10.1 It includes current deposits of Rs.48.508 million under Bacha Khan Khapal Rozgar Scheme.
Rupees in '000'
During the period, additions to / disposals from operating fixed assets amounted to Rs. 220.242 million (September 30, 2010: Rs. 95.144 million) and Rs.3.196 million (september 30, 2010: 16.527 million), respectively.
13
for the Period Ended September 30, 2011
14
for the Period Ended September 30, 2011
7.1
Provision Provision
Required Held
Category of classification Domestic Overseas Total
Other assets especially mentioned* 8,168 - 8,168 - -
Substandard 294,204 - 294,204 64,068 64,068
Doubtful 432,504 - 432,504 93,901 93,901
Loss 3,276,615
-
3,276,615
2,812,366
2,812,366
4,011,491
-
4,011,491
2,970,335
2,970,335
Provision Provision
Required Held
Category of classification Domestic Overseas Total
Other assets especially mentioned* 5,416
-
5,416
-
-
Substandard 412,813
-
412,813
31,543
31,543
Doubtful 178,492
-
178,492
57,031
57,031
Loss 3,520,860
-
3,520,860
2,936,109
2,936,109
4,117,581
-
4,117,581
3,024,683
3,024,683
* Other assets especially mentioned category pertains to agricultural finance only.
7.1.1
7.2 Particulars of provision against non-performing advances
Specific General Total Specific General Total
Opening balance 3,024,683 9,017 3,033,700 2,972,778 12,006 2,984,784
Charge for the period / year 243,307 - 243,307 334,067 1,248 335,315
Reversals (234,486) (1,051) (235,537) (282,162) (4,237) (286,399)
8,821 (1,051) 7,770 51,905 (2,989) 48,916
Amounts written off (63,169) - (63,169) - - -
Closing balance 2,970,335 7,966 2,978,301 3,024,683 9,017 3,033,700
--------------------------------------Rupees in '000'--------------------------------------------
Classified Advances
December 31, 2010 (Audited)
The SBP through its BSD Circular No; 1 dated October 21, 2011 has issued revised instructions on provisioning
against classified assets, allowing benefit in various slabs, yearwise ranging from 75% to 10% of FSV of eligible
collaterals/securities held against Non Performing Loans (NPL's) from the date of classification. The management
is in the process of determining the impact of this Circular, therefore, no effects have been taken in these
accounts.
The SBP through various circulars amended Prudential Regulations in respect of provisioning against non-
performing advances. The revised regulations allow the benefit of 40 percent of Forced Sale Value (FSV) of
pledged stocks and mortgaged residential, commercial and industrial properties (land and building only) held as
collateral by the Bank in determining the amount of provision against non-performing advances. Had there been
no such relaxation from SBP, the provision on the balance sheet would have been higher by Rs. 572.142 million
(2010: 604.65 million). However, the impact on profit due to the benefit of FSV is not available for payment of cash
or stock dividend.
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
------------------------------------------Rupees in '000'----------------------------------------------------
-----------------------------------------Rupees in '000'-----------------------------------------
Classified Advances
Advances include amounts aggregating to Rs. 4,011.491 (December 31, 2010: Rs. 4,117.581) million which have
been placed under non-performing status as detailed below:-
September 30, 2011 (Un-audited)
8. OPERATING FIXED ASSETS - NET
(Un-audited) (Audited)
September 30, December 31,
Note 2011 2010
9. DEFERRED TAX ASSET - NET
Deferred tax asset arising in respect of:
Provision for balances with other banks 3,510 3,510
Deficit on revaluation of investments 72,869 153,605
Provision for diminution in the value of investments 61,237 62,845
Provision for non performing loans 51,490 180,681
Provision for other assets 3,448 3,448
Provision for Workers Welfare Fund 17,770 9,947
Capital loss carried forward 22,050 26,459
Stabilization reserve 35,016 32,528
267,390 473,023
Deferred tax liability arising in respect of:
Accelerated tax depreciation (18,677) (19,506)
Surplus on revaluation of investment (11,091) (10,197)
(29,768)
(29,703)
Deferred tax asset - net 237,622
443,320
10. DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits 20,299,148
15,973,975
Savings deposits 10,914,497
13,528,160
Current accounts - non-remunerative 10.1 6,952,515
5,610,251
Call deposits 690,520
443,888
Margin and sundry deposits 727,845
675,025
39,584,525 36,231,299
Financial Institutions
Remunerative deposits 526,389 750,025
Non-remunerative deposits 265 27
526,654 750,052
40,111,179 36,981,351
10.1 It includes current deposits of Rs.48.508 million under Bacha Khan Khapal Rozgar Scheme.
Rupees in '000'
During the period, additions to / disposals from operating fixed assets amounted to Rs. 220.242 million (September 30, 2010: Rs. 95.144 million) and Rs.3.196 million (september 30, 2010: 16.527 million), respectively.
15
for the Period Ended September 30, 2011
16
for the Period Ended September 30, 2011
(Un-audited) (Audited)
September 30, December 31,2011 2010
Note
11. SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of available-for-sale securities
Federal government securities
- Market Treasury Bills 22,871 (32,887)
- Pakistan Investment Bonds (199,378) (382,592)
Fully paid up ordinary shares - quoted (43,021) 38,062
Term Finance Certificates - listed (19,399) (26,744)
Sukuk Certificates - 3,353 Units in open ended mutual funds 105,500 55,893
Units in close ended mutual funds 5,409 8,021
6 (128,018)
(336,894)
Surplus on revaluation of fixed assets
Freehold land 765,740
765,740
637,722
428,846
Deferred tax asset 61,778
143,408
699,500
572,254
12. CONTINGENCIES AND COMMITMENTS
12.1 Direct credit substitutes
(Un-audited) (Audited)September 30, December 31,
2011 2010
- Financial Institutions -
-
- Others 11,854
142,251
11,854
142,251
12.2 Transaction-related contingent liabilities
(Un-audited) (Audited)
September 30, December 31,
2011 2010Note
Guarantees favouring:
Government 2,991,450 3,133,843Others 3,432,854 2,106,312
12.2.1 6,424,304 5,240,155
Rupees in '000'
Rupees in '000'
Rupees in '000'
Includes general guarantee of indebtedness, bank acceptance guarantee and standby letters of credit
serving as financial guarantees for loans and securities issued in favour of:
Includes performancebonds, bid bonds, warranties, advance payment guarantees,shipping guaranteesand
standby letter of credits related to particular transactions issued in favour of:
12.2.1
(Un-audited) (Audited)
September 30, December 31,
2011 2010
12.3 Trade-related contingent liabilities
Letters of creditSight 1,446,166
1,471,027Usance 427,347 193,198
1,873,513
1,664,225Acceptances 117,754
101,176
1,991,267
1,765,401
12.4 Commitments in respect of forward exchange contracts
Purchase 232,117
79,792
Sale 261,446
80,717
12.4.1
(Un-audited) (Audited)
September 30, December 31,
2011 2010
12.5 Other commitments
Bills for collection
Inland bills 319,881
29,627
Foreign bills 300,259
222,358
620,140
251,985
12.6 Commitments to extend credit
12.7 Commitment for the acquisition of operating fixed assets
12.8
The Bank makes commitments to extend credit in the normal course of its business but these beingrevocable commitments do not attract any significant penalty if the facility is unilaterally withdrawn.
Therehas been no change in the status of other contingenciesas disclosed in notes 21.8, 21.9 and 21.10 tothe annualfinancial statementsof the Bank for the year ended December 31, 2010 except for that the DeputyCommissioner InlandRevenuePeshawar has decided certain matters against the Bank havingtax impact ofRs. 308 million related to the tax year 2009. The Bank has filed an appeal against the said order. Noprovision has been made in the condensed interim financial information as the managementand tax advisorof the Bank are of the view that the issues will be decided in Bank's favour.
All forward exchange contracts are backed by trade related transactions to meet the needs of the Bank'sclients to generate trading revenuesand, as part of its asset and liability management activity, to hedge itsown exposure to currencyrisk. At the period end, all foreign exchange contractshave a remaining maturityofless than one year.
Rupees in '000'
Commitments as on reporting date amounts to Rs. 60.071 million (2010: Rs. 15.068 million).
Rupees in '000'
The above amounts include expired letters of guarantee aggregating to Rs.1,471.000 million as atSeptember 30, 2011 (December 31, 2010: Rs. 318.180 million) for which the formalities relating to returnofthe original documents are in process.
15
for the Period Ended September 30, 2011
16
for the Period Ended September 30, 2011
(Un-audited) (Audited)
September 30, December 31,2011 2010
Note
11. SURPLUS ON REVALUATION OF ASSETS
Surplus / (deficit) on revaluation of available-for-sale securities
Federal government securities
- Market Treasury Bills 22,871 (32,887)
- Pakistan Investment Bonds (199,378) (382,592)
Fully paid up ordinary shares - quoted (43,021) 38,062
Term Finance Certificates - listed (19,399) (26,744)
Sukuk Certificates - 3,353 Units in open ended mutual funds 105,500 55,893
Units in close ended mutual funds 5,409 8,021
6 (128,018)
(336,894)
Surplus on revaluation of fixed assets
Freehold land 765,740
765,740
637,722
428,846
Deferred tax asset 61,778
143,408
699,500
572,254
12. CONTINGENCIES AND COMMITMENTS
12.1 Direct credit substitutes
(Un-audited) (Audited)September 30, December 31,
2011 2010
- Financial Institutions -
-
- Others 11,854
142,251
11,854
142,251
12.2 Transaction-related contingent liabilities
(Un-audited) (Audited)
September 30, December 31,
2011 2010Note
Guarantees favouring:
Government 2,991,450 3,133,843Others 3,432,854 2,106,312
12.2.1 6,424,304 5,240,155
Rupees in '000'
Rupees in '000'
Rupees in '000'
Includes general guarantee of indebtedness, bank acceptance guarantee and standby letters of credit
serving as financial guarantees for loans and securities issued in favour of:
Includes performancebonds, bid bonds, warranties, advance payment guarantees,shipping guaranteesand
standby letter of credits related to particular transactions issued in favour of:
12.2.1
(Un-audited) (Audited)
September 30, December 31,
2011 2010
12.3 Trade-related contingent liabilities
Letters of creditSight 1,446,166
1,471,027Usance 427,347 193,198
1,873,513
1,664,225Acceptances 117,754
101,176
1,991,267
1,765,401
12.4 Commitments in respect of forward exchange contracts
Purchase 232,117
79,792
Sale 261,446
80,717
12.4.1
(Un-audited) (Audited)
September 30, December 31,
2011 2010
12.5 Other commitments
Bills for collection
Inland bills 319,881
29,627
Foreign bills 300,259
222,358
620,140
251,985
12.6 Commitments to extend credit
12.7 Commitment for the acquisition of operating fixed assets
12.8
The Bank makes commitments to extend credit in the normal course of its business but these beingrevocable commitments do not attract any significant penalty if the facility is unilaterally withdrawn.
Therehas been no change in the status of other contingenciesas disclosed in notes 21.8, 21.9 and 21.10 tothe annualfinancial statementsof the Bank for the year ended December 31, 2010 except for that the DeputyCommissioner InlandRevenuePeshawar has decided certain matters against the Bank havingtax impact ofRs. 308 million related to the tax year 2009. The Bank has filed an appeal against the said order. Noprovision has been made in the condensed interim financial information as the managementand tax advisorof the Bank are of the view that the issues will be decided in Bank's favour.
All forward exchange contracts are backed by trade related transactions to meet the needs of the Bank'sclients to generate trading revenuesand, as part of its asset and liability management activity, to hedge itsown exposure to currencyrisk. At the period end, all foreign exchange contractshave a remaining maturityofless than one year.
Rupees in '000'
Commitments as on reporting date amounts to Rs. 60.071 million (2010: Rs. 15.068 million).
Rupees in '000'
The above amounts include expired letters of guarantee aggregating to Rs.1,471.000 million as atSeptember 30, 2011 (December 31, 2010: Rs. 318.180 million) for which the formalities relating to returnofthe original documents are in process.
for the Period Ended September 30, 2011
17
for the Period Ended September 30, 2011
18
(Un-audited) (Audited)
September 30, December 31,
2011 2010
13. KEY FINANCIAL FIGURES OF ISLAMIC BANKING GROUP
ASSETS
Cash and balances with treasury banks 713,763 740,522
Balances with and due from Financial Institutions 690,404 554,970
Lending to financial institutions 500,000
Investments 5,982,619
4,612,539
Financing and receivables
Murahaba 1,574,928 1,579,798
Ijarah 111,524
267,208
Ijarah under IFAS-2 707,327
271,100
Musharaka -
31,091
Diminishing musharaka 791,237
800,391
Others -
-
3,185,016
2,949,588
Less: Provision against non-performing facilities (40,711)
(37,444)
3,144,305
2,912,144
Operating fixed assets 146,867
86,453
Other assets 489,870
499,076
-
11,667,828
9,405,704
LIABILITIES
Bills payable 139,037
40,525
Deposits and other accounts
Current accounts 2,720,016
882,325
Saving accounts 4,733,940
4,181,593
Term deposits 1,408,375
2,218,634
Others 391,396
132,860
9,253,727
7,415,412
Deposits from Financial Institutions - Remunerative 127,426
281,416
Deposits from Financial Institutions - Non-Remunerative -
1
Other liabilities 430,421
310,020
9,950,611
8,047,374
NET ASSETS 1,717,217
1,358,330
REPRESENTED BY
Islamic Banking Fund 460,000 460,000
Reserves - -
Unappropriated profit 1,257,217 898,330
1,717,217 1,358,330
Deficit on revaluation of assets - -
1,717,217 1,358,330
Remuneration to Shariah Advisor during the period/ year 1,061 850
Rupees in '000' (Un-audited) (Un- audited)
September 30, September 30,
2011 2010
Mark-up/return /interest earned 908,168 618,329
Mark-up/return /interest expensed 284,170 209,901
Net mark-up/interest income 623,998 408,428
Provision / (Reversal of provision) against non-performing facilities and financing-net 21,897 (27,351)
Provision for diminution in the value of investments - -
21,897 (27,351)
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 34,567 16,740
Dividend Income 949 -
Income from dealing in foreign currency 8,768 2,714
Gain on sale of securities - net 1,040
Other income 16,274 18,202
61,598 37,656
663,699 473,435
NON MARK-UP/INTEREST EXPENSES
Administrative expenses 304,812 176,029
Other charges - 27
304,812 176,056
Profit for the period 358,887 297,379
14. RELATED PARTY TRANSACTIONS
The profit and loss account of the Bank's Islamic Banking Branches for the nine months ended September 30, 2011 is as under;
Transactions with key management personnel are in accordance with the terms of their employment. Other transactions
are at agreed terms.
The Bank has related party relationships with Government of Khyber Pakhtunkhawa (majority shareholder),
associated company, directors, key management personnel and employee benefit plans.
Rupees in '000'
Contributions to and accruals in respect of staff retirement benefit plan are made in accordance with actuarial valuation.
for the Period Ended September 30, 2011
17
for the Period Ended September 30, 2011
18
(Un-audited) (Audited)
September 30, December 31,
2011 2010
13. KEY FINANCIAL FIGURES OF ISLAMIC BANKING GROUP
ASSETS
Cash and balances with treasury banks 713,763 740,522
Balances with and due from Financial Institutions 690,404 554,970
Lending to financial institutions 500,000
Investments 5,982,619
4,612,539
Financing and receivables
Murahaba 1,574,928 1,579,798
Ijarah 111,524
267,208
Ijarah under IFAS-2 707,327
271,100
Musharaka -
31,091
Diminishing musharaka 791,237
800,391
Others -
-
3,185,016
2,949,588
Less: Provision against non-performing facilities (40,711)
(37,444)
3,144,305
2,912,144
Operating fixed assets 146,867
86,453
Other assets 489,870
499,076
-
11,667,828
9,405,704
LIABILITIES
Bills payable 139,037
40,525
Deposits and other accounts
Current accounts 2,720,016
882,325
Saving accounts 4,733,940
4,181,593
Term deposits 1,408,375
2,218,634
Others 391,396
132,860
9,253,727
7,415,412
Deposits from Financial Institutions - Remunerative 127,426
281,416
Deposits from Financial Institutions - Non-Remunerative -
1
Other liabilities 430,421
310,020
9,950,611
8,047,374
NET ASSETS 1,717,217
1,358,330
REPRESENTED BY
Islamic Banking Fund 460,000 460,000
Reserves - -
Unappropriated profit 1,257,217 898,330
1,717,217 1,358,330
Deficit on revaluation of assets - -
1,717,217 1,358,330
Remuneration to Shariah Advisor during the period/ year 1,061 850
Rupees in '000' (Un-audited) (Un- audited)
September 30, September 30,
2011 2010
Mark-up/return /interest earned 908,168 618,329
Mark-up/return /interest expensed 284,170 209,901
Net mark-up/interest income 623,998 408,428
Provision / (Reversal of provision) against non-performing facilities and financing-net 21,897 (27,351)
Provision for diminution in the value of investments - -
21,897 (27,351)
NON MARK-UP/INTEREST INCOME
Fee, commission and brokerage income 34,567 16,740
Dividend Income 949 -
Income from dealing in foreign currency 8,768 2,714
Gain on sale of securities - net 1,040
Other income 16,274 18,202
61,598 37,656
663,699 473,435
NON MARK-UP/INTEREST EXPENSES
Administrative expenses 304,812 176,029
Other charges - 27
304,812 176,056
Profit for the period 358,887 297,379
14. RELATED PARTY TRANSACTIONS
The profit and loss account of the Bank's Islamic Banking Branches for the nine months ended September 30, 2011 is as under;
Transactions with key management personnel are in accordance with the terms of their employment. Other transactions
are at agreed terms.
The Bank has related party relationships with Government of Khyber Pakhtunkhawa (majority shareholder),
associated company, directors, key management personnel and employee benefit plans.
Rupees in '000'
Contributions to and accruals in respect of staff retirement benefit plan are made in accordance with actuarial valuation.
19
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
20
Details of transactions with related parties as at the period/year end are as follows:
Advances:
At January 1, 122,786 - - 122,786 91,395 - - 91,395
Disbursed during the period/ year 48,904 - - 48,904 36,855 - - 36,855
Repaid during the period/ year (33,022) - - (33,022) (5,464) - - (5,464)
Balance as at September 30/December 31 138,668 - - 138,668 122,786 - - 122,786
Deposits:
At January 1, 7,033
-
22,148
29,181
4,532
-
110,940 115,472
Deposited during the period/ year (Adjusted) 159,566
-
591,494
751,060
121,761
-
250,419 372,180
Repaid during the period/ year (156,088)
-
(155,062)
(311,150)
(119,260)
-
(339,211) (458,471)
Balance as at September 30/December 31 10,511
-
458,580
469,091
7,033
-
22,148 29,181
Transactions, income and expenditure
Profit earned on Financings 2,460
-
-
2,460
863
-
- 863
Return on deposits expensed 449
-
27,425
27,874
201
-
2,890 3,091
Fee/remuneration 3,870
-
-
3,870
2,689
-
- 2,689
15. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
The segment analysis with respect to business activity is as follows:-
Commercial Total
Banking
Total Income 1,998,605 5,476,157
Total Expenses (1,204,247) (4,732,968)
Profit / (loss) after tax 743,189
Commercial Total
Banking
Total Income 2,444,471 3,439,509
Total Expenses (1,720,459) (3,160,864)
Profit / (loss) after tax 724,012 278,645
(316,429)
24,367
596,602
(1,043,280)
(446,678)
Finance
Trading &
Sales
(877,103)
1,935,397
57,640
(80,696)
(23,056)
340,796
Banking
For the nine eonths ended September 30, 2010 (Un-audited)
(680,939)
Corporate
--------------------------------------------------------- Rupees in '000' ------------------------------------------------
Sales
1,432,217
(2,113,156)
794,358
Retail
Banking
--------------------------------------------------------- Rupees in '000' ------------------------------------------------
(428,524)
Trading &
109,938
(538,462)
1,058,294
Directors
and key
management
personnel
Associated
company
Other
related
parties
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
Total
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
Corporate
Finance
Retail
For the nine months ended September 30, 2011 (Un-audited)
------------------------------------------------------------------------- 'Rupees in '000' -------------------------------------------------------------------------
------------------------------------------------------------------------- 'Rupees in '000' -------------------------------------------------------------------------
For the nine months ended September 30, 2011 (Un-audited) For the nine months ended September 30, 2010 (Un-audited)
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
16. DATE OF AUTHORIZATION FOR ISSUE
This condensed interim financial information was authorized for issue on October 28, 2011
by the Board of Directors of the Bank.
Managing Director Director Director Director
19
for the Period Ended September 30, 2011 for the Period Ended September 30, 2011
20
Details of transactions with related parties as at the period/year end are as follows:
Advances:
At January 1, 122,786 - - 122,786 91,395 - - 91,395
Disbursed during the period/ year 48,904 - - 48,904 36,855 - - 36,855
Repaid during the period/ year (33,022) - - (33,022) (5,464) - - (5,464)
Balance as at September 30/December 31 138,668 - - 138,668 122,786 - - 122,786
Deposits:
At January 1, 7,033
-
22,148
29,181
4,532
-
110,940 115,472
Deposited during the period/ year (Adjusted) 159,566
-
591,494
751,060
121,761
-
250,419 372,180
Repaid during the period/ year (156,088)
-
(155,062)
(311,150)
(119,260)
-
(339,211) (458,471)
Balance as at September 30/December 31 10,511
-
458,580
469,091
7,033
-
22,148 29,181
Transactions, income and expenditure
Profit earned on Financings 2,460
-
-
2,460
863
-
- 863
Return on deposits expensed 449
-
27,425
27,874
201
-
2,890 3,091
Fee/remuneration 3,870
-
-
3,870
2,689
-
- 2,689
15. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
The segment analysis with respect to business activity is as follows:-
Commercial Total
Banking
Total Income 1,998,605 5,476,157
Total Expenses (1,204,247) (4,732,968)
Profit / (loss) after tax 743,189
Commercial Total
Banking
Total Income 2,444,471 3,439,509
Total Expenses (1,720,459) (3,160,864)
Profit / (loss) after tax 724,012 278,645
(316,429)
24,367
596,602
(1,043,280)
(446,678)
Finance
Trading &
Sales
(877,103)
1,935,397
57,640
(80,696)
(23,056)
340,796
Banking
For the nine eonths ended September 30, 2010 (Un-audited)
(680,939)
Corporate
--------------------------------------------------------- Rupees in '000' ------------------------------------------------
Sales
1,432,217
(2,113,156)
794,358
Retail
Banking
--------------------------------------------------------- Rupees in '000' ------------------------------------------------
(428,524)
Trading &
109,938
(538,462)
1,058,294
Directors
and key
management
personnel
Associated
company
Other
related
parties
September 30, 2011 (Un-audited) December 31, 2010 (Audited)
Total
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
Corporate
Finance
Retail
For the nine months ended September 30, 2011 (Un-audited)
------------------------------------------------------------------------- 'Rupees in '000' -------------------------------------------------------------------------
------------------------------------------------------------------------- 'Rupees in '000' -------------------------------------------------------------------------
For the nine months ended September 30, 2011 (Un-audited) For the nine months ended September 30, 2010 (Un-audited)
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
Directors
and key
management
personnel
Associated
company
Other
related
parties
Total
16. DATE OF AUTHORIZATION FOR ISSUE
This condensed interim financial information was authorized for issue on October 28, 2011
by the Board of Directors of the Bank.
Managing Director Director Director Director
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