BankingSurvey2012 KPMG

KPMG Taseer Hadi & Co. Chartered Accountants

Banking Survey 2012 Commercial Banks Operating in Pakistan

BANKING & FINANCE

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2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Banking Survey 2012 This survey has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected banks in Pakistan during the year 2012.

Banking sector in Pakistan has been divided in four categories for the purpose of this survey to facilitate comparison of peer groups. Banks with total assets in excess of Rs. 500 billion are categorised as Large Banks, banks with total assets from Rs. 101 billion to Rs. 500 billion are categorised as Medium Size Banks, and banks with total assets up to Rs. 100 billion are categorised as Small Banks. Islamic Banks have been presented as a separate category and included in their respective category of Medium and Small Banks based on total assets threshold.

The information contained in this survey has been obtained from the published consolidated financial statements of the banks, statistical bulletins and quarterly / annual reports published by State Bank of Pakistan (SBP), analysts and research reports and information published in business magazines and newspapers.

Reference should be made to the published financial statements of the banks and definitions included in this survey to enhance the understanding of ratios and analysis of performance of a particular bank.

Comparative figures for 2011 as reported in our Banking Survey 2011 have been updated due to inclusion of financial statements of Sindh Bank Limited and KASB Bank Limited which were not part of our previous survey.

We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. However, we welcome any comments, which would facilitate in improving the contents of this survey. The comments may be sent on [email protected]

Dated: 25 July 2013

Karachi

midreesText Box 2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated withKPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.


Contents

At a Glance ................................................................................................. 1Summary of Financial Information.............................................................. 7Profitability .................................................................................................. 13Spread ........................................................................................................ 17Non-Funded Income ................................................................................... 21Staff Costs .................................................................................................. 23Loans and Advances .................................................................................. 27Liquidity (Average Advances to Average Deposits) ................................... 33Deposits ...................................................................................................... 37Current and Saving Deposits to Total Deposits (CASA) ............................ 43Earning Per Share ...................................................................................... 45Credit Ratings ............................................................................................. 47Number of Branches and Legend .............................................................. 49Definitions ................................................................................................... 51


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Banking Survey 2012 1

Large Banks

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

RankingBy total assets 1 2 2 1 3 3 4 4 5 5 6 6By net assets 2 2 1 1 4 4 3 3 6 6 7 7By profit before tax 1 1 4 3 3 4 2 2 5 5 8 8

Profit before tax 34,891 34,321 24,063 26,132 28,410 23,634 32,476 31,322 16,146 15,258 6,783 5,434 (Rupees in millions)

Net Interest Margin 3.3% 4.5% 3.4% 3.7% 3.5% 4.5% 4.6% 6.3% 1.8% 4.5% 2.1% 2.6%

Return on Average Equity 28.8% 33.3% 16.5% 19.6% 30.4% 29.3% 32.9% 36.1% 34.1% 38.4% 24.2% 22.9%

Return on Average Assets 2.5% 3.3% 1.9% 2.4% 3.2% 3.1% 4.6% 5.1% 2.8% 3.2% 1.4% 1.2%

Operating Cost to Net 55.5% 53.1% 83.7% 66.8% 67.0% 55.1% 43.5% 39.9% 84.1% 55.6% 83.6% 76.4%Income ratio

Charge for provision against 6,767 6,925 8,019 9,358 4,247 7,294 478 3,654 1,020 3,153 3,537 4,330 Non performong Advances(Rupees in millions)

Impairment cover 6.2 6.0 4.0 3.8 7.7 4.2 68.9 9.6 16.8 5.8 2.9 2.3(Times)

Non Performing Advances 10.3% 11.2% 12.1% 14.8% 13.6% 13.4% 9.7% 10.7% 7.2% 7.8% 8.9% 9.0%to gross loans

Total Assets 1,610,309 1,139,554 1,316,160 1,154,966 960,210 807,205 770,283 656,325 632,302 515,889 536,467 468,174 (Rupees in millions)

Net Assets 133,038 109,587 156,178 135,954 100,854 85,921 105,755 91,654 51,264 43,479 30,247 25,777 (Rupees in millions)

Capital Adequacy Ratio 15.8% 15.6% 17.0% 16.8% 22.1% 21.8% 14.7% 14.9% 16.3% 13.6% 12.7% 11.6%

BAFNBPHBL UBL MCB ABL

At a Glance


2 Banking Survey 2012

Medium Banks

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011

RankingBy total assets 7 7 8 8 9 9 10 12 11 10By net assets 9 9 5 5 11 11 14 17 10 10By profit before tax 7 7 6 6 13 12 16 23 12 14

Profit before tax 8,929 7,159 9,322 8,586 1,766 2,455 1,515 470 1,840 1,478 (Rupees in millions)

Net Interest Margin 2.0% 2.6% 4.3% 5.2% 2.1% 2.6% 1.6% 1.1% 2.2% 3.0%

Return on Average Equity 40.4% 39.5% 16.8% 15.9% 9.4% 14.5% 13.1% 6.6% 9.2% 8.3%

Return on Average Assets 2.1% 2.1% 2.4% 2.5% 0.5% 0.7% 0.5% 0.2% 0.6% 0.5%

Operating Cost to Net 58.8% 55.0% 71.9% 67.0% 98.8% 88.1% 173.7% -950.4% 122.8% 120.6%Income ratio

Charge for provision against 466 1,821 3,579 4,507 2,693 1,771 (750) (2,588) 1,401 695 Non performong Advances(Rupees in millions)

Impairment cover 20.2 4.9 3.6 2.9 1.7 2.4 -1.0 0.8 2.3 3.1(Times)

Non Performing Advances 2.4% 2.7% 16.2% 16.3% 16.3% 14.1% 39.4% 48.0% 14.4% 15.7%to gross loans

Total Assets 453,354 384,526 399,055 364,188 353,211 343,866 332,110 280,890 313,064 292,568 (Rupees in millions)

Net Assets 24,178 20,011 55,424 55,659 19,827 17,882 12,371 10,661 20,978 19,213 (Rupees in millions)

Capital Adequacy Ratio 16.1% 16.9% 14.4% 13.2% 11.9% 11.4% 7.7% 7.2% 10.8% 10.7%

BAH SCB Askari FaysalBOP

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011


Profit before tax 5,038 4,645 5,230 4,356 440 (3,492) 1,722 1,078 (2,499) (3,150)(Rupees in millions)


Return on Average Equity 19.1% 20.7% 34.5% 35.0% 3.1% -25.4% 14.8% 10.8% -57.4% -70.2%

Return on Average Assets 1.7% 1.7% 2.2% 2.5% 0.3% 0.7% 1.2% 0.9% -2.0% -2.7%

Operating Cost to Net 72.7% 71.5% 68.6% 65.4% 188.5% 241.8% 92.1% 89.9% 3126.4% 738.6%Income ratio

Charge for provision against 2,694 2,755 451 1,389 117 2,550 520 1,272 23 512 Non performong Advances(Rupees in millions)

Impairment cover 2.87 2.69 12.59 4.14 4.77 -0.37 4.31 1.85 -107.93 -5.15(Times)




Capital Adequacy Ratio 17.2% 14.1% 14.1% 14.9% 12.1% 13.0% 12.4% 12.6% 4.6% 7.6%

HMB Meezan NIB Soneri Summit



Small Banks

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011


Profit before tax 1,286 1,140 (1,597) (3,146) (529) 1,359 2,321 2,524 1,190 537 1,569 1,285 (Rupees in Millions)

Net Interest Margin 1.5% 2.0% 1.8% -1.2% 2.7% 2.6% 4.9% 5.2% 2.1% 1.8% 1.2% 2.6%

Return on Average Equity 11.8% 21.4% -48.7% -178.4% -9.6% 26.0% 23.4% 25.7% 12.1% 7.4% 14.2% 13.0%

Return on Average Assets 1.8% 4.8% -2.0% -8.6% -0.6% 1.7% 2.5% 2.6% 1.7% 1.1% 2.1% 2.2%

Operating Cost to Net 62.7% 35.1% 165.5% -671.3% 214.4% 213.1% 86.9% 71.1% 117.6% 122.1% 70.3% 66.6%Income ratio

Charge for provision against 1 31 1,782 285 (580) (2,630) 822 1,172 530 (151) 178 245 Non performong Advances(Rupees in Millions)

Impairment cover 1204.4 37.3 0.1 -10.0 1.9 0.5 3.8 3.2 3.2 -2.6 9.8 6.3(Times)


Total Assets 92,291 47,730 90,278 73,191 89,062 90,670 85,172 96,903 84,019 54,503 82,178 68,424 (Rupees in Millions)

Net Assets 11,088 10,663 3,028 3,527 5,354 5,639 9,037 10,766 10,935 8,781 11,727 10,365 (Rupees in Millions)

Capital Adequacy Ratio 38.5% 56.3% 1.1% 1.2% 5.7% 6.6% 19.9% 22.6% 16.5% 16.1% 25.1% 22.7%

Sindh JSCitiBankSilk BOKKASB

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011


Profit before tax 626 609 (953) 481 501 316 (488) 1,511 (1,041) 414 33 (347)(Rupees in millions)

Net Interest Margin 2.9% 4.1% 1.5% 1.9% 4.3% 4.2% 3.3% 3.6% 3.7% 3.0% 2.0% 2.4%

Return on Average Equity 11.5% 12.1% -15.2% 7.6% 7.6% 10.1% -6.4% 22.0% -15.1% 6.2% 0.6% -6.8%

Return on Average Assets 0.9% 1.2% -1.3% 0.7% 0.9% 0.7% -0.9% 2.6% -2.0% 0.8% 0.1% -1.5%

Operating Cost to Net 92.4% 92.4% 136.0% 113.4% 100.1% 105.9% 139.4% 83.8% 112.3% 102.6% 159.2% 159.2%Income ratio

Charge for provision against 96 61 802 (227) 193 10 526 103 378 51 (174) 245 Non performong Advances(Rupees in millions)

Impairment cover 7.52 11.06 -0.19 -1.12 3.60 32.38 0.07 15.67 -1.75 9.14 0.81 -0.42(Times)


Total Assets 74,236 58,821 73,869 72,545 63,501 48,196 50,328 59,356 47,778 58,024 47,185 27,656 (Rupees in millions)

Net Assets 5,572 5,313 6,022 6,524 6,867 6,234 7,644 7,506 6,824 6,924 5,937 5,805 (Rupees in millions)

Capital Adequacy ratio 15.3% 17.2% 11.2% 15.3% 19.1% 20.9% 22.7% 23.1% 29.8% 26.1% 22.6% 41.8%

Islami Al Baraka HSBC BurjBarclaysDIB



2012 2011 2012 2011 2012 2011 2012 2011 2012 2011


Profit before tax 164 201 551 1,104 88 400 (180) (184) 71 62 (Rupees in millions)

Net Interest Margin 2.6% 1.5% 4.6% 4.5% 2.5% 3.1% 0.3% -0.6% 1.1% 2.1%

Return on Average Equity 2.0% 2.5% 7.6% 10.1% 4.6% 28.3% -5.9% -12.2% 1.4% 1.3%

Return on Average Assets 0.5% 0.6% 2.2% 5.6% 0.5% 2.8% -1.3% -6.2% 0.9% 0.7%


Charge for provision against (91) (46) (32) (21) 51 (5) -00 -00 -00 -00 Non performong Advances(Rupees in millions)

Impairment cover -0.81 -3.35 -15.97 -51.33 2.75 -72.08 0.00 0.00 0.00 0.00(Times)




Capital Adequacy ratio 43.9% 43.4% 21.9% 26.2% 24.7% 35.5% 71.0% 434.8% 102.0% 105.9%

Samba DB FWB BOTICBC


Islamic Banks

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011


Profit before tax 5,230 4,356 626 609 (953) 481 501 316 33 (347)(Rupees in millions)


Return on Average Equity 34.5% 35.0% 11.5% 12.1% -15.2% 7.6% 7.6% 10.1% 0.6% -6.8%

Return on Average Assets 2.2% 2.5% 0.9% 1.2% -1.3% 0.7% 0.9% 0.7% 0.1% -1.5%


Charge for provision against 451 1,389 96 61 802 (227) 193 10 (174) 245 Non performong Advances(Rupees in millions)

Impairment cover 12.59 4.14 7.52 11.06 (0.19) (1.12) 3.60 32.38 0.81 (0.42)(Times)




Capital Adequacy ratio 14.1% 14.9% 15.3% 17.2% 11.2% 15.3% 19.1% 20.9% 22.6% 41.8%

Meezan Islamic Al Baraka DIB Burj




Large Banks

Assets

HBL 205,210 797,095 24,828 499,818 23,632 59,728 1,610,311 NBP 189,652 342,965 8,281 661,345 29,714 84,204 1,316,161 UBL 117,609 381,246 21,953 385,834 27,461 26,106 960,209 MCB 58,657 405,601 1,551 239,789 24,144 40,540 770,282 ABL 44,381 267,683 10,721 271,116 19,882 18,519 632,302 BAF 84,765 189,487 877 233,933 13,748 13,659 536,469

700,274 2,384,077 68,211 2,291,835 138,581 242,756 5,825,734

Rupees in million

Lendings to financial

institutions

Loans and advances -

net of provisions

Operating fixed assets & intangible

assets

Other assets Total assetsBank Cash & bank Investments

Liabilities and Equity

HBL 18,943 196,581 1,214,964 5,441 41,344 133,038 1,610,311 NBP 14,368 51,112 1,038,095 - 56,407 156,179 1,316,161 UBL 7,601 67,215 755,264 9,319 19,956 100,854 960,209 MCB 9,896 79,064 544,988 - 30,579 105,755 770,282 ABL 6,203 38,916 514,702 5,490 15,727 51,264 632,302 BAF 8,431 21,228 457,119 5,875 13,569 30,247 536,469

65,442 454,116 4,525,132 26,125 177,582 577,337 5,825,734

Total

Rupees in million

Subordinated loans Other liabilities EquityBorrowings DepositsBank Bills payable

Income Statement

HBL 57,760 6,767 15,960 66,953 32,062 34,891 12,535 22,356 NBP 44,573 8,019 24,805 61,359 37,295 24,064 7,176 16,888 UBL 39,643 4,247 17,195 54,988 26,578 28,410 9,131 19,279 MCB 40,940 478 9,541 50,300 17,823 32,477 11,241 21,236 ABL 18,331 1,020 14,245 31,556 15,409 16,147 4,264 11,883 BAF 18,580 3,537 7,281 22,325 15,541 6,784 2,227 4,557

219,827 24,068 89,027 287,481 144,708 142,773 46,574 96,199

Rupees in million

Non-mark-up / Non-interest income

Operating income

Operating expenses

Profit before tax Taxation

Profit after taxBank Spread Provisions

Summary of Financial Information



Medium Size Banks

Assets

BAH 37,211 249,924 994 147,860 11,211 6,154 453,354 SCB 34,188 131,741 19,845 144,918 32,658 35,706 399,056 Askari 33,300 145,354 6,341 143,728 8,902 15,586 353,211 BOP 20,399 129,552 1,563 149,566 3,473 27,558 332,111 Faysal 25,718 87,995 - 172,299 10,860 16,192 313,064 HMB 22,070 160,733 - 106,911 3,001 8,026 300,741 Meezan 22,976 152,460 500 88,678 4,898 4,926 274,438 NIB 8,630 83,803 3,441 71,586 6,204 17,192 190,856 Soneri 12,740 59,517 1,123 76,825 4,015 4,398 158,618 Summit 11,711 49,777 2,039 52,549 5,450 12,762 134,288

228,943 1,250,856 35,846 1,154,920 90,672 148,500 2,909,737

Rupees in million


institutions


net of provisions


assets



BAH 5,257 69,622 340,387 6,489 7,421 24,178 453,354 SCB 6,165 23,399 266,599 2,750 44,719 55,424 399,056 Askari 3,700 8,377 306,930 6,987 7,390 19,827 353,211 BOP 1,501 44,684 266,056 - 7,499 12,371 332,111 Faysal 4,244 35,568 240,713 4,195 7,366 20,978 313,064 HMB 4,092 41,569 217,671 - 9,155 28,254 300,741 Meezan 3,059 18,461 230,426 - 5,940 16,552 274,438 NIB 2,430 76,179 91,094 3,993 2,772 14,388 190,856 Soneri 2,522 20,398 120,831 299 2,215 12,353 158,618 Summit 1,654 28,900 96,815 1,499 2,414 3,006 134,288

34,624 367,157 2,177,522 26,212 96,891 207,331 2,909,737

Total

Rupees in million

Bills payable Borrowings Deposits Subordinated loans Other liabilities EquityBank

Income Statement

BAH 15,369 466 3,059 17,962 9,033 8,929 3,419 5,510 SCB 19,876 3,579 7,312 23,610 14,287 9,323 3,276 6,047 Askari 9,431 2,693 4,344 11,082 9,316 1,766 477 1,289 BOP 2,139 (750) 3,191 6,080 4,566 1,514 (230) 1,744 Faysal 8,963 1,401 5,282 12,844 11,004 1,840 417 1,423 HMB 8,333 2,694 5,458 11,097 6,059 5,038 1,645 3,393 Meezan 10,452 451 2,399 12,400 7,171 5,229 1,722 3,507 NIB 2,863 117 3,091 5,838 5,397 441 178 263 Soneri 4,844 520 1,857 6,181 4,459 1,722 618 1,104 Summit 129 23 1,427 1,533 4,033 (2,500) 218 (2,718)

82,399 11,194 37,420 108,627 75,325 33,302 11,740 21,562

Rupees in million

Bank Spread Provisions / (reversals)


Operating income

Operating expenses

Profit / (loss)

before taxTaxation

Profit / (loss) after

tax



Small Banks

Assets

Sindh 2,856 62,631 4,620 19,282 1,557 1,345 92,291 KASB 6,806 39,969 353 31,090 3,704 8,356 90,278 Silk 4,093 12,735 5,662 49,000 4,637 12,934 89,061 Citibank 12,807 31,339 14,913 18,256 367 7,490 85,172 JS 6,222 47,885 3,741 19,909 3,412 2,851 84,020 BOK 4,759 45,672 1,501 26,693 1,359 2,194 82,178 Islami 5,745 28,994 8,476 27,433 1,913 1,675 74,236 Albaraka 10,933 27,421 1,100 28,782 2,629 3,003 73,868 DIB 9,856 21,335 3,207 26,315 1,535 1,252 63,500 HSBC 12,106 13,434 4,967 17,586 132 2,103 50,328 Barclays 8,407 19,403 - 17,744 513 1,712 47,779 Burj 3,359 17,156 - 23,371 1,130 2,169 47,185 SAMBA 4,343 8,895 2,777 15,445 832 2,562 34,854 DB 7,689 7,747 7,414 3,980 352 1,766 28,948 FWB 1,824 7,264 4,220 8,335 239 608 22,490 ICBC 5,400 13,596 1,554 57 317 1,124 22,048 BOT 5,304 - 1,254 1,619 30 65 8,272

112,509 405,476 65,759 334,897 24,658 53,209 996,508

Rupees in million


institutions


net of provisions


assets



Sindh 176 48,602 31,470 - 955 11,088 92,291 KASB 878 21,245 62,600 - 2,527 3,028 90,278 Silk 1,979 11,377 69,050 - 1,301 5,354 89,061 Citibank 2,186 142 64,294 - 9,513 9,037 85,172 JS 714 8,705 61,935 - 1,731 10,935 84,020 BOK 558 7,420 60,043 - 2,430 11,727 82,178 Islami 1,251 1,621 64,216 - 1,576 5,572 74,236 Albaraka 747 1,992 63,279 - 1,828 6,022 73,868 DIB 659 1,600 53,110 - 1,264 6,867 63,500 HSBC 671 694 38,957 - 2,362 7,644 50,328 Barclays 522 9,292 29,958 - 1,183 6,824 47,779 Burj 391 3,087 35,922 - 1,848 5,937 47,185 SAMBA 251 2,477 22,754 - 856 8,516 34,854 DB 297 318 18,354 - 4,018 5,961 28,948 FWB 549 73 19,193 - 598 2,077 22,490 ICBC 1 12,221 4,168 - 2,509 3,149 22,048 BOT 4 708 2,402 - 94 5,064 8,272

11,834 131,574 701,705 - 36,593 114,802 996,508

Total

Rupees in million




Income Statement

Sindh 2,038 1 527 2,564 1,278 1,286 399 887 KASB 2,343 1,782 1,454 2,281 3,877 (1,596) (791) (805) Silk 1,902 (580) 1,065 3,547 4,077 (530) (185) (345) Citibank 5,233 822 2,456 6,867 4,546 2,321 897 1,424 JS 2,437 530 2,148 4,055 2,865 1,190 370 820 BOK 2,594 178 976 3,392 1,823 1,569 494 1,075 Islami 2,468 96 534 2,906 2,280 626 216 410 Albaraka 1,546 802 406 1,150 2,103 (953) (310) (643) DIB 2,874 193 695 3,377 2,876 501 155 346 HSBC 2,230 526 918 2,622 3,109 (487) (91) (396) Barclays 1,759 378 398 936 1,976 (1,040) 113 (1,153) Burj 1,009 (174) 456 1,639 1,606 33 (51) 84 SAMBA 1,332 (91) 155 1,577 1,413 164 (137) 301 DB 1,101 (32) 588 1,722 1,171 551 200 351 FWB 760 51 96 805 717 88 45 43 ICBC 89 - 141 230 411 (181) - (181) BOT 68 - 157 225 154 71 25 46

31,783 4,482 13,170 39,895 36,282 3,613 1,349 2,264

Rupees in million

Profit / (loss)

before taxTaxation


taxBank Spread Provisions / (reversals)


Operating income

Operating expenses



Islamic Banks

Assets

Meezan 22,976 152,460 500 88,678 4,898 4,926 274,438 Islami 5,745 28,994 8,476 27,433 1,913 1,675 74,236 Albaraka 10,933 27,421 1,100 28,782 2,629 3,003 73,868 DIB 9,856 21,335 3,207 26,315 1,535 1,252 63,500 Burj 3,359 17,156 - 23,371 1,130 2,169 47,185

52,869 247,366 13,283 194,579 12,105 13,025 533,227

Rupees in million


institutions


net of provisions


assets



Meezan 3,059 18,461 230,426 - 5,940 16,552 274,438 Islami 1,251 1,621 64,216 - 1,576 5,572 74,236 Albaraka 747 1,992 63,279 - 1,828 6,022 73,868 DIB 659 1,600 53,110 - 1,264 6,867 63,500 Burj 391 3,087 35,922 - 1,848 5,937 47,185

6,107 26,761 446,953 - 12,456 40,950 533,227

Total

Rupees in million


Income Statement

Meezan 10,452 451 2,399 12,400 7,171 5,229 1,722 3,507 Islami 2,468 96 534 2,906 2,280 626 216 410 Albaraka 1,546 802 406 1,150 2,103 (953) (310) (643) DIB 2,874 193 695 3,377 2,876 501 155 346 Burj 1,009 (174) 456 1,639 1,606 33 (51) 84

18,349 1,368 4,490 21,472 16,036 5,436 1,732 3,704

Rupees in million

Profit / (loss)

before taxTaxation


taxBank Spread Provisions / (reversals)


Operating income

Operating expenses



The profit before tax of banks included in this survey has increased by 6.38% to Rs. 179.4 billion in 2012 from Rs. 167.9 billion in 2011. The main contributors to the increase were UBL with Rs. 4.7 billion, MCB with Rs. 1.1 billion, NIB with Rs. 3.93 billion. The increase in profitability was mainly due to increase in non-mark-up/ non-interest income by Rs. 27.5 billion and dec rease in provisions by Rs. 9.3 billion. This increase was partly offset by reduction in spread by Rs. 9.1 billion and increase in operating expenses by Rs. 20.9 billion.

The impact of FSV benefit taken on profit for 2012 for banks included in the survey is estimated at about Rs. 11.5 billion compared to about Rs. 28.6 billion in 2011. Therefore, it seems that even after absorption of the reduction in benefit, the banks have been abl e to limit the charge on profitability. The estimate of FSV benefit for certain banks has been made based on change in cumulative benefit as those banks have not disclosed the impact on profit for the year separately.

The increasing trend of banks acquiring non-banking assets in settlement of debts has continued in 2012. The non-banking assets acquired now amount to Rs. 41 billion (2011 Rs. 37 billion).

Large Banks

UBL and BAFL posted highest profit growth of 20.2% and 26.0%, respectively, from 2011. UBLs provision decreased by Rs. 3.0 billion during the year and share of profit from associates increased by Rs. 2.7 billion. BAFLs non mark-up / non-interest income has increased by Rs. 1.9 billion and provision decreased by Rs. 0.8 billion while operating expenses increased by Rs. 1.3 billion. NBPs profit decreased due t o higher provision as a r esult of reduction in FSV benefit by Rs. 1.4 billion.

34,891 24,064

28,410

32,477

16,147 6,784

34,321

26,132

23,634

31,322

15,258 5,434

-00

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

HBL NBP UBL MCB ABL BAF

Rup

ees

in m

illio

ns

2012 2011

Operating income less operating cost (i.e. profit before tax) has increased by 5% in 2012.

Profitability



Medium Size Banks Soneri and BAH posted highest profit growth of 59.7% and 24.7% respectively from 2011 while NIB was able to convert its loss into profit this year. Soneris spread has increased by Rs. 0.9 billion, provisions and operating expenses have decreased by Rs. 0.7 billion and 0.1 billion respectively. BAHs spread has increased by Rs. 1.2 billion and provisions have decreased by Rs. 1.4 billion. This has been partly offset by increase in operating expenses by 1.3 billion. NIB banks increase is mainly due to decrease in provision by Rs. 2.4 billion.

8,929

9,323

1,766

1,514

1,840

5,038

5,229

441

1,722

(2,500)

7,159

8,586

2,455 470

1,478

4,645

4,356

(3,492)

1,078

(3,150)

(6,000)(4,000)(2,000)

-00 2,000 4,000 6,000 8,000

10,000

BA

H

SC

B

Askari

BO

P

Faysal

HM

B

Meezan

NIB

Soneri

Sum

mit

Rup

ees

in m

illio

ns

2012 2011

Small Banks

Profit before tax of small banks included in this survey has decreased to Rs. 3.3 billion in 2012 as compared with profit before tax of Rs. 8.3 billion in 2011. Silk, Al Baraka, HSBC and Barclays have losses before tax of Rs. 2.9 billion compared to profit of Rs. 3.7 billion in 2011. JS, DIB and BOK posted highest growth of 121.5%, 58.5% and 22.1% in 2012 respectively.

1,286

(1,596)

(530)

2,321 1,190

1,569

626

(953)

501

(487)

(1,040)

33

164

551

88

(181)

71

1,140

(3,146)

1,359

2,524

537

1,285 609

481 316

1,511

414

(347)

201

1,104 400

(184)

62

(4,000)

(3,000)

(2,000)

(1,000)

-00

1,000

2,000

3,000

Sindh

KA

SB

Silk

Citibank

JS BOK

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SA

MB

A

DB

FWB

ICB

C

BO

T

Rup

ees

in m

illio

ns

2012 2011

Operating income less operating cost (i.e. profit before tax) has increased by 41% in 2012.

Operating income less operating cost (i.e. profit before tax) has decreased by 56% in 2012.


Islamic Banks Profit before tax of Islamic banks increased to Rs. 5.4 billion from Rs. 5.1 billion with major contributor in profit before tax being Meezan having profit before tax of Rs. 5.2 billion.

5,229

626

(953)

501 33

4,356

609

481

316

(347)(1,500)(1,000)

(500)-00 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000

Meezan Islami Albaraka DIB Burj

Rup

ees

in m

illio

ns

2012 2011

Operating income less operating cost (i.e. profit before tax) has increased by 0.4% .




The overall average spread of the industry for last five years as disclosed in SBP Statistical Bulletins was as follows:

2012 2011 2010 2009 2008 In percentage

Weighted average lending rate

12.8 13.6 13.4 14.0 12.5

Weighted average deposit rate

5.8 6.0 5.9 6.5 5.2

Banking spread 7.1 7.6 7.5 7.5 7.3

(Source: Monthly SBP Statistical Bulletins)

The average spread of banks included in this survey was 6.2% (2011: 7.0%).

Large Banks

Average spread of large banks in 2012 was 6.9% compared to 7.9% in 2011.

6.3

6.9

6.7

8.0 7.2 6.2

7.6

7.6

7.8

9.7

7.9 7.3


In percentages

2012 2011

Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends

Spread



Medium Size Banks

Average spread of medium size banks in 2012 was 5.2% compared to 5.5% in 2011.

4.5

9.1

5.5

1.6

6.7

3.7

5.2 4.6

4.5 3.7

4.4

11.2

4.8

1.2

7.4

4.0

5.5

3.9

4.7 4.2

BA

H

SC

B

Ask

ari

BO

P

Fay

sal

HM

B

Mee

zan

NIB

So

ner

i

Sum

mit

In percentages

2012 2011

Small Banks

Average spread of small banks in 2012 was 5.8% compared to 6.0% in 2011.

7.7

3.8

6.4

8.9 7.4 5.9

6.6

2.5

6.9 5.0 4.0 2.6

5.1

8.1

7.7 5.8

7.5

-3.9

23.0

7.1

7.3

7.2

8.7

8.5

3.0

7.4 6.7 6.1 4.5

5.5

7.4

7.4

0.3

2.0

Sind

h

KA

SB

Silk

Citib

ank

JS BOK

Islami

Alb

araka

DIB

HS

BC

Barclays

Burj

SA

MB

A

DB

FW

B

ICB

C

BO

T

In percentages

2012 2011




Islamic Banks

Average spread of Islamic banks in 2012 was 5.1% compared to 5.8% in 2011.

5.2

6.6

2.5

6.9

2.6

5.5

8.5

3.0

7.4

4.5


In percentages

2012 2011





Non-funded income as a percentage of net interest income, of banks included in this survey, has increased to 29% in 2012 from 26.1% in 2011. Large Banks income increased from 24.3% in 2011 to 28.4% in 2012; whereas the ratio of Medium Size Banks remained almost the same as in previous year at 30.9% (2011: 30.9%). Small Banks ratio increased to 28.3% in 2012 from 27.3% in 2011. Islamic Banks ratio increased to 15.7% in 2012 from 14.4% in 2011.

Non-funded income to net interest income

Large Banks

21.5

39.4

38.8

18.5

20.8

30.2 22.6

33.1

31.1

14.8

14.7

27.1


In percentages

2012 2011

Medium Size Banks

16.8

30.8

27.5

70.6

40.1

45.0

13.5

59.9

27.4

717.1

16.7

25.1

24.0

(352.5)

40.9

47.4

14.4

75.1

39.2

134.7

BA

H

SC

B

Ask

ari

BO

P

Fay

sal

HM

B

Mee

zan

NIB

So

ner

i

Sum

mit

In percentages

2012 2011

Non-Funded Income

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed



Small Banks

7.1

59.4

46.1

22.0

46.2

17.1

12.7

26.6

20.9

41.2

22.6

14.4

8.7

52.5 11.4

158.4

230.9

0.9

(171.3)

38.8

28.2

27.2

14.8

8.7

27.3

14.5

39.0

25.5

7.8

9.2

65.4 8.2

10.1

102.1

Sindh

KA

SB

Silk

Citibank

JS BOK

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SA

MB

A

DB

FWB

ICB

C

BO

T

In percentages

2012 2011

Islamic Banks

13.5

12.7

26.6 20.9 14.4

14.4

8.7

27.3

14.5

7.8


In percentages

2012 2011

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed.

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed.



Staff costs remain one of the most significant costs for the banks, averaging approximately 49.6% (2011: 48.3%) of total operating expenses.

Large Banks

2012 2011 2012 2011 2012 2011

HBL 17,764 16,922 13,978 13,661 1,271 1,239 NBP 26,061 21,555 16,924 17,322 1,540 1,244 UBL 11,003 9,377 13,056 12,563 843 746 MCB 7,564 6,850 12,611 13,355 600 513 ABL 8,314 7,633 13,059 13,029 637 586 BAF 7,279 6,310 9,897 10,123 735 623

77,985 68,647 79,525 80,053

Staff cost Number of staff Cost per staff

Rupees in millions Numbers Rupees in thousand

Medium Size Banks

2012 2011 2012 2011 2012 2011

BAH 4,139 3,439 6,577 6,051 629 568 SCB 5,105 4,713 5,041 4,990 1,013 944 Askari 4,510 4,535 7,003 7,372 644 615 BOP 2,337 2,056 5,492 4,999 426 411 Faysal 5,025 5,141 6,462 6,442 778 798 HMB 2,849 2,415 3,303 3,092 863 781 Meezan 3,390 2,932 5,953 4,900 569 598 NIB 2,578 2,232 2,768 2,718 931 821 Soneri 1,765 1,317 3,275 2,494 539 528 Summit 1,570 1,497 2,514 1,705 625 878

33,268 30,277 48,388 44,763



Small Banks

2012 2011 2012 2011 2012 2011

Sindh 617 12 1,241 592 497 20 KASB 1,563 1,282 1,875 1,798 834 713 Silk 2,229 1,908 2,750 2,564 811 744 Citibank 1,179 1,165 677 1,016 1,742 1,147 JS 1,206 833 1,945 1,619 620 515 BOK 969 923 1,430 1,384 678 667 Islami 968 843 1,648 1,452 587 581 Albaraka 838 761 1,293 1,238 648 615 DIB 1,114 918 1,739 1,400 641 656 HSBC 1,603 888 493 548 3,252 1,620 Barclays 913 1,045 249 576 3,667 1,814 Burj 645 388 1,529 820 422 473 SAMBA 678 687 732 760 926 904 DB 430 396 112 113 3,839 3,504 FWB 425 335 641 630 663 532 ICBC* 271 130 32 28 8,469 4,643 BOT 64 63 43 42 1,488 1,500

15,712 12,577 18,429 16,580

Number of staff Cost per staffStaff cost

Rupees in thousandNumbersRupees in millions

Staff cost includes salaries, allowances, etc., staff retirement benefits.

Staff Costs



* Comparative figures of 2011 include the effect of only five months.



Islamic Banks

2012 2011 2012 2011 2012 2011

Meezan 3,390 2,932 5,953 4,900 569 488 Islami 968 843 1,648 1,452 587 481 Albaraka 838 761 1,293 1,238 648 452 DIB 1,114 918 1,739 1,400 641 913 Burj 645 388 1,529 820 422 544

6,955 5,842 12,162 9,810






Remuneration of Executives

Large Banks

2012 2011 2012 2011 2012 2011

HBL* 37,868 25,766 5,260,598 4,196,926 2,688 2,187 NBP 49,833 77,527 4,386,428 3,316,968 1,509 1,232 UBL* 97,924 84,000 5,919,551 5,178,362 1,583 1,485 MCB 83,158 42,914 2,528,935 2,421,803 821 906 ABL 64,570 57,139 2,889,470 2,644,698 1,241 1,114 BAF 82,133 134,612 3,007,831 2,816,915 1,071 993

415,486 421,958 23,992,813 20,575,672 8,913 7,917

CEO Remuneration Remuneration of Executives Number of Executives

Rupees in thousands Numbers

Medium Size Banks

2012 2011 2012 2011 2012 2011

BAH 25,386 22,564 1,758,093 1,448,801 781 639 SCB 143,531 106,486 2,519,495 2,855,264 907 915 Askari 34,138 25,248 1,558,224 1,114,153 530 542 BOP 33,654 22,800 528,168 366,367 320 217 Faysal 71,576 76,061 1,986,325 2,082,726 741 770 HMB 68,428 52,450 2,148,211 370,920 835 218 Meezan 99,969 93,387 980,587 764,351 365 294 NIB 74,524 67,568 1,158,967 1,012,406 611 526 Soneri 54,644 38,025 573,165 286,399 302 194 Summit 24,000 19,819 642,088 515,751 284 285

629,850 524,408 13,853,323 10,817,138 5,676 4,600

CEO Remuneration Remuneration of Executives Number of Executives


Small Banks

2012 2011 2012 2011 2012 2011

Sindh 44,487 25,649 246,695 108,725 92 39 KASB 62,040 20,467 809,450 664,598 398 404 Silk 71,524 58,579 1,206,661 1,059,638 382 341 Citibank 64,419 48,131 922,194 803,826 257 296 JS 32,794 18,866 659,205 455,929 286 221 BOK 10,106 8,402 140,584 133,819 50 52 Islami 18,207 20,009 228,322 198,388 114 106 Albaraka 34,277 27,064 394,748 365,477 208 214 DIB 28,634 16,697 467,458 382,863 186 170 HSBC 59,502 55,567 423,264 331,641 113 123 Barclays* 45,307 40,374 451,646 494,382 189 194 Burj 48,550 27,487 366,617 203,789 240 140 SAMBA 33,274 31,945 347,845 351,969 140 141 DB* 30,206 28,419 191,325 170,814 63 62 FWB 16,745 12,911 132,533 95,632 63 55 ICBC** 27,926 15,001 191,642 83,692 19 18 BOT 10,008 8,632 18,198 24,224 5 7

638,006 464,200 7,198,387 5,929,406 2,805 2,583

Numbers

Remuneration of ExecutivesCEO Remuneration

Rupees in thousands

Number of Executives

Remuneration of executives




Islamic Banks

2012 2011 2012 2011 2012 2011

Meezan 99,969 93,387 980,587 764,351 365 294 Islami 18,207 20,009 228,322 198,388 114 106 Albaraka 34,277 27,064 394,748 365,477 208 214 DIB 28,634 16,697 467,458 382,863 186 170 Burj 48,550 27,487 366,617 203,789 240 140

229,637 184,644 2,437,732 1,914,868 1,113 924

Number of Executives


CEO Remuneration Remuneration of Executives


* Certain benefits of Chief Executive Officer have been di sclosed in aggregate along with benefits of executives by these banks.

** Comparative figures of 2011 includes the effect of only five months.




Small Banks

Total loans and advances of banks under review have increased by 13.2% (2011: 2.6%) to Rs. 3,781 billion at 31 December 2012 (2011: Rs. 3,342 billion). The growth of various categories of banks was as follows:

2012 2011 Large Banks 14.9% 0.0% Medium Size Banks 11.0% 1.4% Small Banks 9.3% 29.2% Islamic Banks 21.2% 17.0%

Growth in Loans and Advances

Large Banks

2011-12 2010-11 2012 2011 2010

HBL 9.3 (0.5) 499,818 457,368 459,750 NBP 25.2 10.3 661,345 528,122 478,887 UBL 13.1 (0.1) 385,834 341,140 341,510 MCB 6.2 (11.3) 239,789 225,795 254,565 ABL 10.9 (3.4) 271,116 244,440 253,103 BAF 17.9 (4.2) 233,933 198,469 207,152

15 0 2,291,835 1,995,334 1,994,967

Annual increase Advances

Rupees in millionsIn percentages

4.3

17.5

6.3

(2.9)

3.5

6.3

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

Annualised Increase (2010 12)

Loans and Advances



Medium Size Banks

2011-12 2010-11 2012 2011 2010

BAH 28.7 (8.7) 147,860 114,863 125,773 SCB 5.5 (5.1) 144,918 137,309 144,722 Askari (4.6) (1.4) 143,728 150,713 152,784 BOP 17.7 5.2 149,566 127,108 120,818 Faysal 16.3 10.8 172,299 148,162 133,707 HMB (2.5) (8.5) 106,911 109,657 119,828 Meezan 26.0 16.8 88,678 70,377 60,265 NIB 17.6 (18.4) 71,586 60,862 74,584 Soneri 17.6 19.5 76,825 65,340 54,676 Summit (6.2) 44.4 52,549 56,000 38,771

11.0 1.4 1,154,920 1,040,391 1,025,928

In percentages Rupees in millions


8.4

0.1

(3.0)

11.3

13.5

(5.5)

21.3

(2.0)

18.5

16.4

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

Soneri

Summit

In percentages




Small Banks

2011-12 2010-11 2012 2011 2010

Sindh 165.6 Nil 19,282 7,259 Nil KASB 5.8 Nil 31,090 29,387 Nil Silk (1.9) 12.6 49,000 49,936 44,354 Citibank (3.0) (2.2) 18,256 18,820 19,244 JS 10.4 29.0 19,909 18,030 13,978 BOK 19.8 22.2 26,693 22,288 18,238 Islami 11.2 26.1 27,433 24,665 19,566 Albaraka (1.3) 5.4 28,782 29,155 27,653 DIB 10.2 4.0 26,315 23,889 22,980 HSBC (15.4) (6.5) 17,586 20,794 22,242 Barclays (15.5) 20.4 17,744 20,998 17,437 Burj 88.0 83.1 23,371 12,431 6,788 SAMBA (2.4) 30.4 15,445 15,831 12,138 DB 33.2 (8.0) 3,980 2,987 3,246 FWB 8.2 22.1 8,335 7,701 6,308 ICBC 119.2 Nil 57 26 Nil BOT (26.9) (25.7) 1,619 2,215 2,981

9.3 29.2 334,897 306,412 237,153


AdvancesAnnual increase

-00 -00

5.1 (2.6)

19.3 21.0

18.4 2.0

7.0 (11.1)

0.9 85.6

12.8 10.7

14.9 -00

(26.3)

SindhKASB

SilkCitibank

JSBOK

IslamiAlbaraka

DIBHSBC

BarclaysBurj

SAMBADB

FWBICBCBOT

In percentages




Islamic Banks

2011-12 2010-11 2012 2011 2010

Meezan 26.0 16.8 88,678 70,377 60,265 Islami 11.2 26.1 27,433 24,665 19,566 Albaraka (1.3) 5.4 28,782 29,155 27,653 DIB 10.2 4.0 26,315 23,889 22,980 Burj 88.0 83.1 23,371 12,431 6,788

21.2 17.0 194,579 160,517 137,252



21.3

18.4

2.0

7.0

85.6

Meezan

Islami

Albaraka

DIB

Burj

In percentages




Market Share of Loans and Advances

2012 2011 2012 2011

NBP 18 16 661,345 528,122 HBL 13 14 499,818 457,368 UBL 10 10 385,834 341,140 ABL 7 7 271,116 244,440 MCB 6 7 239,789 225,795 BAF 6 6 233,933 198,469 Faysal 5 4 172,299 148,162 BAH 4 3 147,860 114,863 SCB 4 4 144,918 137,309 Askari 4 5 143,728 150,713 BOP 4 4 149,566 127,108 HMB 3 3 106,911 109,657 Less than 3% 16 16 601,163 546,562

100 100 3,758,280 3,329,704




Banks with less than 3% market share

2012 2011 2012 2011

Meezan 2.36 2.11 88,678 70,377 Soneri 2.04 1.96 76,825 65,340 NIB 1.90 1.83 71,586 60,862 Summit 1.40 1.68 52,549 56,000 Silk 1.30 1.50 49,000 49,936 KASB 0.83 0.88 31,090 29,387 Albaraka 0.77 0.88 28,782 29,155 Islami 0.73 0.74 27,433 24,665 BOK 0.71 0.67 26,693 22,288 DIB 0.70 0.72 26,315 23,889 JS 0.53 0.54 19,909 18,030 Sindh 0.51 0.22 19,282 7,259 Citibank 0.49 0.57 18,256 18,820 HSBC 0.47 0.62 17,586 20,794 Barclays 0.47 0.63 17,744 20,998 SAMBA 0.41 0.48 15,445 15,831 FWB 0.22 0.23 8,335 7,701 DB 0.11 0.09 3,980 2,987 BOT 0.04 0.07 1,619 2,215 ICBC 0.00 0.09 57 26.42

16.0 16.5 601,163.2 546,561.8




The total average advances to total average deposits ratio of banks included in this survey has decreased to 48.6% from 52.4% in 2011 due to growth rate of deposit being higher than growth rate of advances.

Large Banks

2012 2011 2010 2012 2011 2010

HBL 476,897 433,206 431,797 1,214,964 933,632 747,375 NBP 649,773 516,760 469,794 1,038,095 927,411 832,134 UBL 368,984 323,783 321,427 755,264 633,889 567,611 MCB 226,235 212,695 242,520 544,988 491,147 431,295 ABL 252,584 226,500 234,595 514,702 399,561 371,281 BAF 222,334 188,824 197,351 457,119 401,248 354,011

2,196,807 1,901,768 1,897,484 4,525,132 3,786,888 3,303,707

Deposits

Rupees in millions

Advances*

42.4

59.4 49.9 42.4

52.4

47.9

51.5

56.1

53.7

49.3

59.8 51.1


In percentages

2012 2011

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.

Average advances to average deposits ratio

Liquidity (Average Advances to Average Deposits)



Medium Size Banks

2012 2011 2010 2012 2011 2010

BAH 130,288 99,363 105,693 340,387 302,097 249,761 SCB 128,039 119,863 130,446 266,599 235,875 220,188 Askari 135,963 141,474 140,359 306,930 291,499 255,908 BOP 142,505 120,991 114,376 266,056 237,897 208,177 Faysal 153,915 131,899 117,066 240,713 214,615 195,315 HMB 86,201 86,474 91,397 217,671 185,281 160,314 Meezan 82,713 64,347 55,586 230,426 170,030 131,070 NIB 61,570 51,124 61,682 91,094 85,472 99,112 Soneri 68,059 56,879 46,822 120,831 99,734 82,017 Summit 49,266 51,586 55,720 96,815 89,665 91,017

1,038,519 924,000 919,147 2,177,522 1,912,165 1,692,879

Advances* Deposits

Rupees in millions

35.7

49.3

46.4

52.3

62.8

42.9

36.7

63.8 56.6

54.1

37.2

54.9

51.5

52.8

60.7 51.5 39.8

61.1

57.1

59.4

BA

H

SC

B

Askari

BO

P

Faysal

HM

B

Meezan

NIB

Soneri

Sum

mit

In percentages

2012 2011





Small Banks

2012 2011 2010 2012 2011 2010

Sindh 18,308 7,059 Nil 31,470 23,518 Nil KASB 28,269 26,262 Nil 62,600 61,994 Nil Silk 45,734 46,086 40,724 69,050 64,072 55,706 Citibank 18,230 17,705 17,789 64,294 61,679 68,305 JS 18,886 16,782 12,741 61,935 40,174 26,276 BOK 25,595 21,296 17,621 60,043 45,548 36,981 Islami 26,812 23,865 19,213 64,216 50,569 38,198 Albaraka 26,791 27,419 24,896 63,279 61,559 49,324 DIB 24,715 22,341 22,030 53,110 38,492 31,415 HSBC 16,892 20,298 21,285 38,957 46,171 46,461 Barclays 13,330 20,998 13,154 29,958 44,665 32,302 Burj 22,381 12,209 6,501 35,922 20,341 12,636 SAMBA 12,990 13,417 10,984 22,754 17,669 14,872 DB 3,680 2,814 2,803 18,354 11,119 6,066 FWB 8,261 7,650 6,223 19,193 13,815 10,195 ICBC 57 26 Nil 4,168 1,524 Nil BOT 1,619 2,140 2,931 2,402 1,992 2,350

312,550 288,367 218,895 701,705 604,901 431,087

Advances* Deposits

Rupees in millions

46.1

43.8

69.0

28.5

34.9

44.4

44.1

43.4

51.4

43.7

46.0

61.5

65.3

22.0

48.2

1.5

85.6

30.0

42.4

72.5

27.3

44.4

47.2

48.5

47.2

63.5 44.9

44.4

56.7

75.0

32.7

57.8

1.7

116.8

Sind

h

KA

SB

Silk

Citib

ank

JS BOK

Islami

Alb

araka

DIB

HS

BC

Barclays

Burj

SA

MB

A

DB

FW

B

ICB

C

BO

T

In percentages

2012 2011




Islamic Banks

2012 2011 2010 2012 2011 2010

Meezan 82,713 64,347 55,586 230,426 170,030 131,070 Islami 26,812 23,865 19,213 64,216 50,569 38,198 Albaraka 26,791 27,419 24,896 63,279 61,559 49,324 DIB 24,715 22,341 22,030 53,110 38,492 31,415 Burj 22,381 12,209 6,501 35,922 20,341 12,636

183,412 150,181 128,226 446,953 340,991 262,643

Advances*

Rupees in millions

Deposits

36.7

44.1

43.4

51.4

61.5

39.8

48.5

47.2

63.5 56.7


In percentages

2012 2011






Deposits for banks included in this survey increased by 17.5% to Rs. 7,404 billion at 31 December 2012 compared to Rs. 6,305 billion at 31 December 2011.

Growth in Deposits

Large Banks

2011-12 2010-11 2012 2011 2010

HBL 30.1 24.9 1,214,964 933,632 747,375 NBP 11.9 11.4 1,038,095 927,411 832,134 UBL 19.1 11.7 755,264 633,889 567,611 MCB 11.0 13.9 544,988 491,147 431,295 ABL 28.8 7.6 514,702 399,561 371,281 BAF 13.9 13.3 457,119 401,248 354,011

19.5 14.6 4,525,132 3,786,888 3,303,707

Annual Increase Deposits


79.1

49.8

57.5

51.3

62.2

54.0

HBL

NBP

UBL

MCB

ABL

BAF

In percentages


Deposits



Medium Size Banks

2011-12 2010-11 2012 2011 2010

BAH 12.7 21.0 340,387 302,097 249,761 SCB 13.0 7.1 266,599 235,875 220,188 Askari 5.3 13.9 306,930 291,499 255,908 BOP 11.8 14.3 266,056 237,897 208,177 Faysal 12.2 9.9 240,713 214,615 195,315 HMB 17.5 15.6 217,671 185,281 160,314 Meezan 35.5 29.7 230,426 170,030 131,070 NIB 6.6 (13.8) 91,094 85,472 99,112 Soneri 21.2 21.6 120,831 99,734 82,017 Summit 8.0 45.7 96,815 89,665 61,537

13.9 15.0 2,177,522 1,912,165 1,663,399

Annual Increase Deposits


16.7

10.0

9.5

13.0

11.0

16.5

32.6

(4.1)

21.4

25.4

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

Soneri

Summit

In percentages




Small Banks

2011-12 2010-11 2012 2011 2010

Sindh 33.8 Nil 31,470 23,518 Nil KASB 1.0 Nil 62,600 61,994 Nil Silk 7.8 15.0 69,050 64,072 55,706 Citibank 4.2 (9.7) 64,294 61,679 68,305 JS 54.2 52.9 61,935 40,174 26,276 BOK 31.8 23.2 60,043 45,548 36,981 Islami 27.0 32.4 64,216 50,569 38,198 Albaraka 2.8 24.8 63,279 61,559 49,324 DIB 38.0 22.5 53,110 38,492 31,415 HSBC (15.6) (0.6) 38,957 46,171 46,461 Barclays (32.9) 38.3 29,958 44,665 32,302 Burj 76.6 61.0 35,922 20,341 12,636 SAMBA 28.8 18.8 22,754 17,669 14,872 DB 65.1 83.3 18,354 11,119 6,066 FWB 38.9 35.5 19,193 13,815 10,195 ICBC 173.5 Nil 4,168 1,524 Nil BOT 20.6 (15.2) 2,402 1,992 2,350

16.0 40.3 701,705 604,901 431,087

Rupees in millions

DepositsAnnual Increase

In percentages

-00

-00

11.3

(3.0)

53.5

27.4

29.7

13.3

30.0

(8.4)

(3.7)

68.6

23.7

73.9

37.2

-00

1.1

Sindh

KASB

Silk

Citibank

JS

BOK

Islami

Albaraka

DIB

HSBC

Barclays

Burj

SAMBA

DB

FWB

ICBC

BOT

In percentages




Islamic Banks

2011-12 2010-11 2012 2011 2010

Meezan 35.5 29.7 230,426 170,030 131,070 Islami 27.0 32.4 64,216 50,569 38,198 Albaraka 2.8 24.8 63,279 61,559 49,324 DIB 38.0 22.5 53,110 38,492 31,415 Burj 76.6 61.0 35,922 20,341 12,636

31.1 29.8 446,953 340,991 262,643


DepositsAnnual Increase

32.6

29.7

13.3

30.0

68.6

Meezan

Islami

Albaraka

DIB

Burj

In percentages




Market Share of Customer Deposits

2012 2011 2012 2011

HBL 17 15 1,194,841 915,813 NBP 12 13 874,575 785,362 UBL 10 10 737,065 619,339 MCB 8 8 536,202 482,573 ABL 7 7 509,851 398,634 BAF 6 6 423,430 371,820 BAH 5 5 334,987 295,595 SCB 4 4 265,783 235,134 Askari 4 5 296,726 289,991 BOP 4 4 262,142 232,989 Faysal 3 5 230,735 289,991 HMB 3 3 204,032 173,535 Meezan 3 3 230,167 169,484 Less than 3 % 14 14 977,426 846,087

100 100 7,077,961 6,106,347


*Deposits from financial institutions have been excluded to analyse deposits from customers.



Banks with less than 3% market share

2012 2011 2012 2011

Soneri 1.70 1.62 120,580 99,184 NIB 1.23 1.39 86,969 84,620 Summit 1.25 1.22 88,623 74,409 Silk 0.96 1.02 67,869 62,213 Citibank 0.88 0.98 62,408 59,777 Islami 0.89 0.80 62,717 48,997 KASB 0.88 1.01 62,600 61,642 BOK 0.85 0.73 59,974 44,658 Albaraka 0.82 0.94 58,065 57,345 JS 0.78 0.61 55,291 37,045 DIB 0.75 0.63 53,009 38,473 HSBC 0.54 0.74 38,072 45,269 Burj 0.48 0.31 33,900 18,953 Sindh 0.44 0.38 31,328 23,453 Barclays 0.42 0.73 29,936 44,625 SAMBA 0.31 0.28 21,994 17,242 FWB 0.27 0.23 19,192 13,813 DB 0.26 0.18 18,346 11,111 ICBC 0.06 0.04 4,168 1,524 BOT 0.03 0.03 2,385 1,734

13.81 13.88 977,426 846,087


* Deposits from financial institutions have been excluded to analyse deposits from customers.



Large Banks

Banks 2012 2011 Percentage

Habib Bank Limited 66.6 68.7

National Bank of Pakistan 70.0 65.2

United Bank Limited 65.6 67.8

MCB Bank Limited 83.4 79.4

Allied Bank Limited 68.4 72.3

Bank Alfalah Limited 69.1 66.3

Medium Size Banks


Bank Al-Habib Limited 70.3 58.1

Standard Chartered Bank (Pakistan) Limited 88.0 83.6

Askari Bank Limited 71.4 67.8

Bank of Punjab 56.0 52.8

Faysal Bank Limited 56.7 49.2

Habib Metropolitan Bank Limited 49.9 48.3

Meezan Bank Limited 65.5 64.8

NIB Bank Limited 67.6 60.3

Soneri Bank Limited 66.4 60.1

Summit bank Limited 52.3 42.4

Small Banks

Banks 2012 2011 Percentage Sindh Bank Limited 77.7 89.1

KASB Bank Limited 75.0 63.2

Silkbank Limited 48.7 47.4

Citibank N.A (Pakistan Branches) 74.5 58.9

JS Bank Limited 55.6 56.7

The Bank of Khyber 50.6 45.2

BankIslami Pakistan Limited 50.4 48.3

Albaraka Bank (Pakistan) Limited 47.8 45.4 Dubai Islamic Bank (Pakistan) Limited 58.7 53.8

HSBC Bank Middle East Limited 61.9 54.4

Current and Saving Deposits to Total Deposits (CASA)



Barclays Bank PLC (Pakistan Branches) 69.5 53.1

Burj Bank Limited 48.9 44.4

Samba Bank Limited 49.0 49.6

Deutsche Bank AG (Pakistan Branches) 45.4 39.5

First Women Bank Limited 58.7 62.4

Industrial and Commercial Bank of China Limited (Pakistan Branches) 29.5 1.4

Bank of Tokyo Mitsubishi UFJ, Limited (Karachi Branch) 24.0 27.7




Large Banks

Earnings / (loss) per share

Banks 2012 2011 Rupees per share Habib Bank Limited 18.36 18.30 National Bank of Pakistan 9.13 9.58 United Bank Limited 15.71 12.13 MCB Bank Limited 23.00 20.95 Allied Bank Limited 12.56 10.84 Bank Alfalah Limited 3.38 2.60

Medium Size Banks


Banks 2012 2011 Rupees per share Bank Al-Habib Limited 5.46 4.49 Standard Chartered Bank (Pakistan) Limited 1.54 1.41 Askari Bank Limited 1.54 2.00 Bank of Punjab 3.30 0.56 Faysal Bank Limited 1.53 1.38 Habib Metropolitan Bank Limited 3.24 3.14 Meezan Bank Limited 3.88 3.75 NIB Bank Limited 0.02 (0.34) Soneri Bank Limited 1.10 0.78 Summit Bank (2.52) (1.17)

Small Banks


Banks 2012 2011 Rupees per share Sindh Bank Limited 0.89 0.75 KASB Bank Limited (0.41) (2.5) Silkbank Limited (0.13) 0.26 JS Bank Limited 0.71 0.42 The Bank of Khyber 1.19 1.29 BankIslami Pakistan Limited 0.78 0.78 AlBaraka Bank (Pakistan) Limited (0.72) 0.46 Dubai Islamic Bank (Pakistan) Limited 0.51 0.28 Burj Bank Limited 0.11 (0.46) Samba Bank Limited 0.21 0.16 First Women Bank Limited 0.33 3.11

Earning Per Share



Large Banks

Banks Rating Agency

Credit Rating Assigned

Short Term

Long Term

Habib Bank Limited JCR-VIS A-1+ AAA

National Bank of Pakistan JCR-VIS A-1+ AAA

United Bank Limited JCR-VIS A-1+ AA+

MCB Bank Limited PACRA A1+ AAA

Allied Bank Limited PACRA A1+ AA+

Bank Alfalah Limited PACRA A1+ AA

Medium Size Banks

Banks Rating Agency


Short Term

Long Term

Bank Al-Habib Limited PACRA A1+ AA+

Standard Chartered Bank (Pakistan) Limited PACRA A1+ AAA

Askari Bank Limited PACRA A1+ AA

The Bank of Punjab PACRA A1+ AA-

Faysal Bank Limited PACRA A1+ AA

JCR-VIS A-1+ AA

Habib Metropolitan Bank Limited PACRA A1+ AA+

The Bank of Punjab PACRA A1+ AA-

Meezan Bank Limited JCR-VIS A-1+ AA

NIB Bank Limited PACRA A1+ AA-

Soneri Bank Limited PACRA A1+ AA-

Summit Bank Limited JCR-VIS A-2 A-

Credit Ratings



Small Banks

Banks Rating Agency


Short Term

Long Term

Sindh Bank Limited JCR-VIS A-1+ AA-

Silkbank Limited JCR-VIS A-2 A-

CitiBank N.A. (Pakistan Branches) Moodys P-1 A1

JS Bank Limited PACRA A1 A+

The Bank of Khyber JCR-VIS A-1 A

PACRA A A1

BankIslami Pakistan Limited PACRA A1 A

Al-Baraka Bank (Pakistan) Limited

PACRA A1 A

JCR-VIS A-1 A

Dubai Islamic Bank (Pakistan) Limited JCR-VIS A-1 A

HSBC Bank Middle East Limited

Moody's P-1 A1

Fitch F1+ AA-

Barclays Bank PLC (Pakistan Branches)

Standard & Poors A-1 A

Moodys P-1 Aa3

Fitch F1 A

Burj Bank Limited JCR-VIS A-1 A

Samba Bank Limited JCR-VIS A-1 AA-

Deutsche Bank AG (Pakistan Branches)

Standards & Poor's A-1 A

Moodys P-1 Aa3

Fitch F1+ A+

First Women Bank Limited PACRA A2 A-

Industrial and Commercial Bank of China Limited (Pakistan Branches) Moodys P-1 A1

Bank of Tokyo-Mitsubishi UFJ Limited (Karachi Branches)

Standard & Poors A-1 A+

Moodys P-1 Aa3

Fitch F1 A



Large Banks

Banks Legend Number of Branches *

2012 2011 Habib Bank Limited HBL 1,540 1,506 National Bank of Pakistan NBP 1,313 1,300 United Bank Limited UBL 1,296 1,235 MCB Bank Limited MCB 1,187 1,173 Allied Bank Limited ABL 875 837 Bank Alfalah Limited BAF 471 406 6,682 6,457

Medium Size Banks


2012 2011 Bank Al-Habib Limited BAH 392 353 Standard Chartered Bank (Pakistan) Limited SCB 130 143 Askari Bank Limited Askari 261 245 Bank of Punjab BOP 306 284 Faysal Bank Limited Faysal 265 257 Habib Metropolitan Bank Limited HMB 143 138 Meezan Bank Limited Meezan 310 275 NIB Bank Limited NIB 179 179 Soneri Bank Limited Soneri 233 214 Summit Bank Summit 186 165 2,405 2,253

Small Banks


2012 2011

Sindh Bank Sindh 160 50 KASB Bank Limited KASB 105 104 Silkbank Limited Silk 85 85 Citibank N.A (Pakistan Branches) Citi 7 16 JS Bank Limited JS 185 147 The Bank of Khyber BOK 77 62 BankIslami Pakistan Limited Islami 141 102 Al-Baraka Bank (Pakistan) Limited Albaraka 94 89 Dubai Islamic Bank (Pakistan) Limited DIB 100 75 HSBC Bank Middle East Limited HSBC 10 11 Barclays Bank PLC (Pakistan Branches) Barclays 7 15 Burj Bank Limited Burj 75 50 Samba Bank Limited SAMBA 28 28 Deutsche Bank AG (Pakistan Branches) DB 3 3 First Women Bank Limited FWB 41 38 Ind

Documents

BankingSurvey2012 KPMG