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Hoda Vasi Chowdhury & CoChartered AccountantsBTMC Bhaban (7th Floor). 7-9 Karwan Bazar, Dhaka-1215Tele (88-2): 9120090.9140094Faxj880-2): _8j19298Website: www.hodavasi.com_______
Auditors' report and financial statementsfor the year ended 31 December 2016
Habib Bank Limited - Bangladesh Branches
Habib Bank Limited - Bangladesh BranchesCountry OfficeSouth Avenue Tower7 Gulshan AvenueGulshan 1. Dhaka 1212
National Office: BTMC Bhaban (7th & 8th Floor), 7-9 Karwan Bazar Commercial Area, Dhaka-1215, BangladeshMotijheel Office: Ispahan! Building (3rd Floor), 14-1S Motijheel Commercial Area, Dhaka-1000, BangladeshChhtagong Office: Del war Bhaban (4th Floor), 104 Agrabad Commercial Area, Chittagong-4100, Bangladesh
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'judgment,including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud and error. In making those risk assessments, the auditors consider internal controlrelevant to the entity's preparation and fair presentation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Anaudit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management as well as evaluating the overall
presentation of the financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion.
Opinion
In our opinion, the financial statements of the Bank give a true and fair view of the financialposition of the Bank as at 31 December 2016, and of its financial performance and cash flows for
the year then ended in accordance with Bangladesh Financial Reporting Standards (BFRS) as
explained in Note2.1.
1
We have audited the accompanying financial statements of Habib Bank Limited - Bangladesh
Branches (the "Bank") which comprise the balance sheet as at 31 December 2016, profit and lossaccount, cash flow statement, statement of changes in equity for the year then ended, and a
summary of significant accounting policies and other explanatory notes and annexure thereto.
Management's responsibility for the financial statements and internal controls
Management is responsible for the preparation and fair presentation of financial statements that
give a true and fair view in accordance with Bangladesh Financial Reporting Standards (BFRS) asexplained in Note 2.1 and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement, whether dueto fraud or enor. The Bank Company Act 1991 and the local central bank (Bangladesh Bank)
regulations require the management to ensure effective internal audit, internal control and riskmanagement functions of the Bank. The management is also required to make a self-assessment on
the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of
fraud and forgeries.
Auditors' responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Bangladesh Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtain a
table assurance about whether the financial statements of the Bank are free from material
Independent Auditors' Report to the Management of
Habib Bank Limited - Bangladesh Branches
Hoda Vasi Chowdhury & CoChartered Accountants
Dhaka, 27 February 2017
Report on other legal and regulatory requirements
In accordance with the Companies Act 1994, the Bank Company Act 1991 and the rules andregulations issued by Bangladesh Bank, we also report that:
(a)we have obtained all the information and explanations which to the best of our knowledge
and belief were necessary for the purposes of our audit and made due verification thereof;
(b)to the extent noted during the course of our audit work performed on the basis stated under
the auditors' responsibility section in forming the above opinion on the financial statementsof the Bank and considering the reports of the management to Bangladesh Bank on anti-
fraud internal controls and instances of fraud and forgeries as stated under the management'sresponsibility for the financial statements and internal control:
(i) internal audit, internal control and risk management arrangements of the Bank appeared
to be materially adequate;
(ii) nothing has come to our attention regarding material instances of forgery or irregularity
or administrative error and exception or anything detrimental committed by employees
of the Bank during the year ended 31 December 2016;
(c)in our opinion, proper books of account as required by law have been kept by the Bank sofar as it appeared from our examination of those books and proper returns adequate for the
purpose of our audit have been received from branches not visited by us;
(e)the balance sheet and profit and loss statement of the Bank dealt with by the report are in
agreement with the books of account and returns;
(d)the expenditures incurred during the year were for the purposes of the Bank's business;
(f)the financial statements of the Bank have been drawn up in conformity with prevailing rules,
regulations and accounting standards as well as with related guidance issued by Bangladesh
Bank;
(g)adequate provisions have been made for classified loans and advances;
(h) the records and statements submitted by the branches have been properly maintained and
consolidated in the financial statements;
(i) the information and explanations required by us have been received and found to be
(j) we have reviewed over 80% of risk-weighted assets of the Bank and spending over 1,500
person hours; and
Capital Adequacy B
adequately during the year.
HodaVasiChowdhury&Co
12,563,836,212
4,086,887,815
155,473,068138,024,859
4,380,385,742
8,183,450,4701,472,514,031
1,800,163,1414,297,563,044
367,097,83316,112,421
230,000,000
6,480,936,439
12,563,836,212
43,386,6211,059,214,182
4,916,977,196
4,550,921
441,318,000
1,710,334,217
4,921,528,117
22,68773,945,868
73,968,555
41,463,151
4,272,623,369
2015BDT
4,314,086,520
12,881,976,950
4,096,673,37559,254,59789,418,411
4,245,346,382
8,636,630,5681,567,899,857
1,886,504,9204,346,252,569
449,302,31336,670,909
350,000,000
6,718,730,711
12,881,976,950
47,233,6991,029,555,152
4,783,688,2749,051,077
908,740,000
1,758,079,495
4,792,739,351
35,28256,112,499
86,147,781
49,094,855
4,240,386,617
2016BDT
4,289,481,472
13
14
12
3
11
910
6
78
5
Notes
4
Total liabilities and shareholders' equity
Capital fundRevaluation reserve
Retained earnings
Capital/shareholders' eguityTotal shareholders' equity
Total liabilitiesOther liabilities
Current deposit and other accounts
Fixed depositsSavings bank depositsBills payable
LIABILITIES AND CAPITALLiabilities:Borrowings from other banks, financial institutions and ageni
Deposits and other accounts :
Total assets :
Fixed assets including premises, furniture and fixtures
Other assetsNon - banking assets
Loans, cash credits, overdrafts, etc
Bills purchased and discounted
Money at call and on short noticeInvestments:Government securities
Loans and advances:
In BangladeshOutside Bangladesh
Balance with other banks and financial institutions
In hand (including foreign currencies)Balance with Bangladesh Bank and its agent bank(including foreign currencies)
PROPERTY AND ASSETSCash
Balance SheetAs at 31 December 2016
Hablb Bank Limited - Bangladesh Branches
Hoda Vasi Chowdhury & CoChartered Accountants
Dhaka, 27 February 2017
As per our report of same date
j YousufRegional General Manager
Mohammad Nazmul Huq BhuiyanHead - Finance
for Habib Bank Limited — Bangladesh Branches
These financial statements should be read in conjunction with annexed notes
1,826,687,981-
-
2,277,190,817
1,826,687,981
447,292,938418,295,200431,714,176
21,593,147507,792,520
2015BDT
2,277,190,817
835,589,514312,217,191349,344,617106,669,887673,369.608
2016BDT
OFF-BALANCE SHEET ITEMSContingent liabilities:15Acceptances and endorsementsLetters of guaranteeIrrevocable letters of creditBills for collectionOther contingent liabilitiesTotal
Other commitments:Documentary credits and short term trade-related transactionsForward assets purchased and forward deposits placedUndrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities, credit lines and other commitmentsTotalTotal Off-Balance Sheet Items Including Contingent Liabilities
Balance SheetAs at 31 December 2016
Habib Bank Limited - Bangladesh Branches
Hoda Vasi Chowdhury & CoChartered Accountants
Dhaka, 27 February 2017
As per our report of same date
b YousufRegiona^eneral Manager
Mohammad Nazmul Huq BhuiyanHead - Finance
These financial statements should be read in conjunction with annexed notes
for Habib Bank Limited — Bangladesh Branches
26,746,66735,000,00035,000,000
61,746,6671,332,326
(48,606,449)3,500,0003,500,000
(45,106,448)
5,200,000652,326
(4,520,000)
(2,850,000)16,057.158
650,000
General provisionSpecific provisionProvision for off-balance sheet itemsProvision for diminution in value of investmentsOther provisions
Total provision (D)Total profit before tax (C-D)Less: Provision for taxation
Current tax
Net profit after taxation
50,081,07317,199,749
173,00022,597,1676,469,9861,966,7152,645,154
54.971,068144.218,420
45.120,93320,125,407
173,00021,583,2596,025,5892,468,4151,164,232
51,120,483167,252,678
134,743,495106,346,335
12,447,693
486,905,957377,042,155
2015BDT
76,472,183 I77,265,063 I10,185,461 fl
408.498.734R286.636.735|
2016BDT
Operating incomeInterest income16Less: Interest paid on deposit and borrowing, etc17Net interest incomeInvestment income18Commission, exchange and brokerage19Other operating income20Total operating income (A)
LESS: OPERATING EXPENSESSalaries and allowances21Rent, taxes, insurance, electricity, etc22Legal & Professional charges23Postage, stamp, telecommunication, etc24Stationery, printing, advertisements, etc25Chief executive salary and feesAuditors' feesDepreciation and repairs of bank's assets26Other expenses27Total operating expenses (B)Profit before provision (C=A-B)
Profit and Loss StatementFor the year ended 31 December 2016
Kabita Bank Limited - Bangladesh Branches
b YousufRegional General Manager
Mohammad Nazmul Huq BhuiyanHead Finance
4,829,491,975118,900
441,318,00073,968,555
4,272623,36941,463,151
5.254.595.753226,500
908,740,00056,147,781
4,240,386,61749,094,855
4,829,491,9755,083,449,663
23,932,077(277,889.765)
-
230,000,000
88,903,165107,515,911
(18,632,744)
5.254.595.7534,829,491,975
9,785,560415.318,217
120,000.000
151.592.356)(47,745,278)
(3,847,078)
(596,792,930)(584,019630)
(86,380,920)(158,037,215)
44,613 52428,406.776
(412,621,795)
(12,773,300)(42,610,920)12,447694
(62,800,662)52,200 000
(83,547.421)(155,916,467)
137,392 735106,346,335
(464,067,393)487,782,799
BDT2015
346,910,574306,389,942(32,068,582)208,902,500(28,891,772)29659,030
128.788,766
40,620,631(46,376,600)
8,516,778(25,703,599)37,435,000
(113,899,652)(183,886,265)107,575,43477 265,063
(471,101,196)650,695,670
BDT2016
These financial statements should be read in conjunction with annexed notes
for Habib Bank Limited — Bangladesh Branches
Notes
Cash flows from operating activities (A)Interest receipts in cashInterest paymentsFee and commission receipts in cashIncome from investments
Cash payments to employeesCash payments to suppliersRecoveries on loans
Income tax paidReceipts from other operating activitiesPayments for other operating activitiesOperating profit before changes in operating assets and liabilities
Increase/decrease in operating assets and liabilitiesLoans and advances to customers
Other assetsDeposits from other banksDeposits from customers
Other liabilities
Net cash from operating activities (A)Cash flows from investing activities (B)Purchase/sale of property, plant and equipmentSale proceeds of property, plant and equipmentPayments for purchase of securities
Net cash used in investing activities
Cash flows from financing activities (C)Borrowings from other banksRemittance received from Head OfficeNet cash from/fused) in financing activities
Net increase in cash and cash equivalents (A+B+C)Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the beginning of the yearCash and cash equivalents at end of the year
Cash and cash equivalents:CashBalance with Bangladesh Bank and its agent bank(s)Balance with other banks and financial institutionsMoney at call and on short noticePrize bonds
Habib Bank Limited • Bangladesh Branches
Cash Flow StatementFor the year ended 31 December 2016
Mohammad Nazmul Huq BhuiyanHead Finance
for Habib Bank Limited — Bangladesh Branches
4.096.673,37559.254.5S889.418,410 4.245.346.383
(96,218.471)
4,086,887,815155,473.068138,024,859 4,380.385,7424,086,887,815155,473,068138,024.859 4,380,385,742
9,785,560-9,785,560
(96,218,471)
(48,606,448) (48,606,448)
111,278.192 4,242,240,967
23,932,07687,466,031
26,746,66726,746,6'
Balance at 01 Jan 2015Capital fund received from Head Office
Currency translation differencesRevaluation of treasury bills and BondsNet profit for the yearBalance at 31 Dec 2015Balance at 01 Jan 2016Capital fund received from Head OfficeCurrency translation differencesRevaluation/ amortisation of treasury bills and
BondsNet profit for the yearBalance at 31 Dec 2016
TotalBDT
Retainedearnings
BDT
Revaluation
reserveBDT
Capital fundBDT
Hablb Bank Limited - Bangladesh Branches
Statement of Changes in EquityFor the year ended 31 December 2016
1The Bank and its activities
1.1Habib Bank Limited, Bangladesh Branches/ Legal Form of the Bank
Habib Bank Limited (HBL) - Bangladesh Branches (the "Bank") is the Branch of Habib BankLimited, a banking company incorporated in Pakistan having its Head Office at Habib Bank Plaza,Karachi, Pakistan, The Bank is carrying on banking business in Bangladesh since 1976 withbranches in Dhaka (Gulshan, Uttara, Motijheel, Karwanbazar and Nayabazar), Chittagong andSylhet after obtaining necessary permissions from the regulatory authorities.
1.2Principal activities
The principal activities of the Bank are to provide conventional banking services to its customers
through deposits, loans and advances, trade financing, remittances facilities through its branches,alternate distribution channels namely, ATM booths, VISA debit cards and Internet Banking inBangladesh.
2Basis of preparation
2.1 Statement of compliance
The financial statements of the Bank as at and for the year ended December 31, 2016 have beenprepared on accrual basis under the historical cost convention, except investments and definedbenefit schemes, and in accordance with the "First Schedule" (section 38) of the Bank Companies
Act 1991, as amended by Bangladesh Bank (the Central Bank of Bangladesh) through BRPDCircular No. 14 dated 25 June 2003, other Bangladesh Bank Circulars and International
Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as adopted bythe Institution of Chartered Accountants of Bangladesh (ICAB) into Bangladesh Accounting
Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) where relevant to theBank to the extent that these does not contradict the applicable statutory provisions of BangladeshBank.
In case any requirement of provisions and circulars issued by Bangladesh Bank differs with thoseof other regulatory authorities, the provisions and circulars issued by Bangladesh Bank shallprevail. Accordingly the Bank has departed from such requirements of BFRSs in order to comply
with the rules and regulations of Bangladesh Bank which are disclosed below:
i) Investment in shares and securities
BFRS: As per requirements of BAS 39 investment in shares and securities generally fails eitherunder "at fair value through profit and loss account" or under "available for sale" where any changein the fair value (as measured in accordance with BFRS 13) at the year-end is taken to profit andloss account or revaluation reserve respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quotedshares and unquoted shares are revalued at the year end at market price and as per book value oflast audited balance sheet respectively. Provision should be made for any loss arising fromdiminution in value of investment; otherwise investments are recognized at cost.
Habib Bank Limited - Bangladesh Branches
Notes to the financial statements
For the year ended 31 December 2016
ii) Revaluation gains/losses on Government securities
BFRS: As per requirement of BAS 39 where securities will fall under the category of "Held for
Trading" (HFT), any change in the fair value (as measured in accordance with BFRS 13) of Heldfor Trading assets is recognized through profit and loss account. Securities designated as "Held toMaturity" (HTM) are measured at amortized cost method and interest income is recognized
through the profit and loss account.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year endany gains on revaluation of securities which have not matured as at the balance sheet date arerecognized in other reserves as a part of equity and any losses on revaluation of securities whichhave not matured as at the balance sheet date are charged in the profit and loss account. Intereston HFT securities including amortization of discount are recognized in the profit and loss account.HTM securities which have not matured as at the balance sheet date are amortized at the yearend and gains or losses on amortization are recognized in other reserve as a part of equity.
Ill) Provision on loans and advances
BFRS: As per BAS 39 an entity should start the impairment assessment by considering whetherobjective evidence of impairment exists for financial assets that are individually significant. Forfinancial assets that are not individually significant, the assessment can be performed on anindividual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular No.16 dated 18 November 2014, BRPD circular no: 14dated 23 September 2012, BRPD circular No. 19 dated 27 December 2012 and BRPD circular No.
05 dated 29 May 2013 a general provision at 0.25% to 5% under different categories ofunclassified loans (good/standard loans) has to be maintained regardless of objective evidence ofimpairment. Also specific provision for substandard loans, doubtful loans and bad losses has to beprovided at 20%, 50% and 100% respectively for loans and advances depending on the durationof overdue. Furthermore a general provision at 1% is required to be provided for all off-balance
sheet exposures.
iv) Other comprehensive income
BFRS: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statementsor the elements of other comprehensive income are to be included in a single ComprehensiveIncome statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements throughBRPD circular no. 14 dated 25 June 2003 which will strictly be followed by all banks. Thetemplates of financial statements issued by Bangladesh Bank do not include OtherComprehensive Income nor are the elements of Other Comprehensive Income allowed to beincluded in a single (OCI) statement. As such the Bank does not prepare an OCI statement.However elements of OCI, if any, are shown in the statements of changes in equity.
v) Financial instruments - presentation and disclosureIn several cases, Bangladesh Bank guidelines categories, recognize, measure and presentfinancial instruments differently from those prescribed in BAS 39. As such, some disclosure andpresentation requirements of BFRS 7 and BAS 32 cannot be made in the financial statements.
Habib Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
viii) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as 'loans and advances' as per
BAS 39 and interest income is recognized through effective interest rate method over the life ofthe loan. Once a loan is impaired, interest income is recognized in profit and loss account on the
same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan isclassified other than Bad and Loss, interest on such loans are not allowed to be recognized asincome, rather the corresponding amount needs to be credited to an interest suspense account,which is presented as liability in the balance sheet.
fx) Cash and cash equivalent
BFRS: Cash and cash equivalent items should be reported as cash Item as per BAS 7.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, balance with BangladeshBank is part of cash and cash equivalent regardless of any restriction. Some cash and cashequivalent items such as 'money at call and on short notice', treasury bills, prize bond are notshown as cash and cash equivalent. Money at call and on short notice is shown as face item in thebalance sheet, and treasury bills, prize bonds are shown under investments in the balance sheet.
11
vi) Repo and Reverse Repo transactions
BFRS: When an entity sells a financial asset and simultaneously enters into an agreement to
repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending),the arrangement is treated as a loan and the underlying asset continues to be recognized in theentity's financial statements. The difference between selling price and repurchase price will betreated as interest expense. Same rule applies to the opposite side of the transaction (reverserepo).
Bangladesh Bank: As per DOS Circular letter no. 6 dated 15 July 2010 and subsequentclarification in DOS circular no. 02 dated 23 January 2013, when a bank sells a financial asset and
simultaneously enters into an agreement to repurchase the asset (or a similar asset) at a fixedprice on a future date (repo or stock lending), the arrangement is accounted for as a normal sales
transaction and the financial asset is derecognized in the seller's book and recognized in thebuyer's book,
vii) Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to makepayment when due in accordance with the terms of a debt instrument. Financial guaranteeliabilities are recognized initially at their fair value, and the initial fair value is amortized over the lifeof the financial guarantee. The financial guarantee liability is subsequently carried at the higher of
this amortized amount and the present value of any expected payment when a payment under theguarantee has become probable. Financial guarantees are included within other liabilities.
Bangladesh Bank: As per BRPD 14, dated 25 June 2003 financial guarantees such as letter ofcredit, letter of guarantee, etc. will be treated as off-balance sheet items. No liability is recognizedfor the guarantee except the cash margin.
Habib Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
x) Non-banking asset
BFRS: No indication of Non-banking asset is found in any BFRS.
Bangladesh Bank: As per BRPD 14, there is a separate balance sheet item named Non-BankingAsset existed in the standard format
xi) Cash flow statement
BFRS: The Cash flow statement can be prepared using either the direct method or the indirectmethod. The presentation is selected to present these cash flows in a manner that is mostappropriate for the business or industry. The method selected is applied consistently.
Bangladesh Bank: As per BRPD 14, dated 23 June 2003 cash flow is the mixture of direct andindirect methods.
xii) Balance with Bangladesh Banks: ^Cash Reserve Requirement)
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available foruse in day to day operations as per BAS 7.
Bangladesh Bank: As per BRPD 14, dated 23 June 2003 balance with Bangladesh Bank istreated as cash and cash equivalents.
xiii) Presentation of intangible asset
BFRS: Intangible assets must be identified and recognized, presented in the face of the balancesheet and the disclosure must be given as per BAS 38.
Bangladesh Bank: As per BRPD 14, dated 23 June 2003 no intangible asset is presented in theface of the balance sheet.
xiv) Off-balance sheet items
BFRS: There is no concept of off-balance sheet items in any BFRS; hence there is no requirementfor disclosure of off-balance sheet items.
Bangladesh Bank: As per BRPD 14, dated 23 June 2003 off balance sheet items (e.g. Letter ofcredit, Letter of guarantee etc.) must be disclosed separately on the face of the balance sheet,
xv) Loans and advances/Investments net of provision
BFRS: Loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 14, dated 23 June 2003 provision on loans andadvances/investments are presented separately as liability and cannot be netted off against loansand advances.
xvi) Disclosure of appropriation of profitBFRS: There is no requirement to show appropriation of profit in the face of statement ofcomprehensive income.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, an appropriation of profitshould be disclosed in the face of profit and loss account.
Habib Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
xvli) Recognition of derivativesBFRS: As per BAS 39, all derivatives including forward contracts are initially recognized at fairvalue {as measured in accordance with BFRS 13) which is generally the transaction price.Subsequent to initial recognition, derivatives are classified as "fair value through profit & loss" andchanges in Fair value are recognized in profit and loss accounts.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, derivative contracts aredisclosed outside of balance sheet exposures.
2.2Basis of measurement
The financial statements of the Bank have been prepared on accrual basis under historical costconvention except for the following:
-Government treasury bills and bonds designated as 'Held for Trading (HFT)' which are measured
at present value using mark to market. Revaluation gains if any are credited to revaluation reserve
account as per DOS circular 05 dated 26 May 2008 and DOS circular 05 dated 28 January 2009
• Government treasury bills and bonds designated as 'Held to Maturity (HTM)' are remeasured at
present value using amortisation concept as per DOS circular 05 dated 26 May 2008 and DOScircular 05 dated 28 January 2009.-Investment in shares of listed companies are valued at market price and unlisted companies atcost or book value of last audited balance sheet whichever is lower.-Net asset/Liability of the defined benefit scheme which is net of present value of the definedbenefit obligations, total plan assets and other related items required by BAS 19
2.3Use of estimates and judgments
The preparation of the financial statements in conformity with BASs/BFRSs requires management
to make judgments, estimates and assumptions that affect the application of accounting policiesand the reported amounts of assets, liabilities, income and expenses. Actual results may differfrom these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which the estimate is revised
and in any future periods, if affected. Information about significant areas of estimation, uncertainty
and critical judgments in applying accounting policies that have the most significant effect on theamounts recognized in the financial statements are described below:
a.Provisions for loans and advances
The Bank assesses its loans and advances for objective evidence of impairment on a regular
basis and particularly at year end. While the primary criteria set out in BRPD circular no. 14 dated23 September 2012, for determining whether a loan is impaired is objective, being based onborrower's ability to make timely repayments, loans and advances may also be classified based onqualitative judgment. This involves making assessments regarding the economic environment inwhich borrowers operate in addition to making judgments about a borrower's financial situation andnet realizable value of any underlying collateral.
b.Taxation
The estimation of current tax provision involves making judgments regarding admissibility ofcertain expenses as well as estimating the amount of other expenses for tax purposes. In addition,the recognition of deferred tax assets and liabilities requires the Bank to estimate to which it is
probable that future taxable profits or loss will be available against which the deferred tax may beutilized.
Hablb Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
c. Depreciation
Depreciation is provided on a straight line basis over the estimated useful lives of each item ofproperty, plant and equipment. The determination of useful life involves the use of estimates
regarding expected use of the assets, expected physical wear and tear, technical or commercialobsolescence and legal or similar limits on the use of the asset.
2.4Foreign currency transactions
Functional and presentation currency
These financial statements have been presented in Bangladesh Taka (BDT), which is the Bank'sfunctional currency. Except otherwise indicated, financial information presented in Taka has beenrounded to the nearest integer.
Foreign currency translation
Foreign currency transactions have been converted into equivalent Taka (BDT) currency at theruling exchange rates on the respective date of such transactions as per BAS 21 "The Effects ofChanges in Foreign Exchange Rates".
Assets and liabilities in foreign currencies as at 31 December 2016 have been converted intoBangladesh Taka (BDT) currency at the spot rate for the day taken from Bangladesh Bank.
Differences arising through buying and selling transactions of foreign currencies on different datesof the year have been adjusted by debiting /crediting exchange gain or loss account.
Translation gain and losses
Gains or losses arising out of translation of foreign exchange have been included in the Profit and
Loss Statement except for the exchange rate differences on funds deposited with BB as capital
which is recognized directly in equity.
2.5Cash flow statement
Cash Flow Statement is prepared principally in accordance with BAS 7 "Cash Flow Statement"under direct method as per the guidelines of BRPD circular no. 14 dated 25 June 2003. The CashFlow Statement shows the structure of and changes in cash and cash equivalents during the year.Cash flows during the period have been classified as operating activities, investing activities andfinancing activities.
2.6Statement of changes In equity
Statement of Changes in Equity has been prepared in accordance with BAS 1 "Presentation ofFinancial Statements" and following the guidelines of Bangladesh Bank BRPD circular no.14 dated25 June 2O03.This statement reflects information about the increase or decrease in net assets orwealth.
2.7Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2016.
Habib Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
Significant accounting policies
The accounting policy set out below have applied consistently to all the periods presented in thesefinancial statements and have been applied consistently by the Bank.
3.1 Assets and basis of their valuation
3.1.1Cash and cash equivalents
Cash and cash equivalents include cash in hand and balances with Bangladesh Bank and itsagent bank, balances with other banks and financial institutions, money at call and on short
notice, reverse repo and prize bonds,
3.1.2Investments
Investment in securities
All investments in securities (bills and bonds) are initially recognised at purchase priceexcluding commission and accrued coupon interest. Investments are segregated in two broad
categories. These are Held to maturity (HTM) and Held for trading (HFT).
Held to MaturityInvestment which have "determinable Payment" and are intended to be held to maturity are
classified as HTM.
Held for TradingInvestment classified in the category are acquired principally for the purpose of selling orrepurchasing in short trading in order to generate profits.
RevaluationAs per Bangladesh Bank DOS circular letter no. 5 dated 28 January 2009, HFT securities arerevalued each week using Marked to Market concept and HTM securities are amortised once ayear according to Bangladesh Bank guidelines. The HTM securities are also revalued if theseare reclassified to HFT category with the ALCO approval. Value of investment has been shown
as under:
Government treasury bills and bonds (HFT) ; At present value (using marked to marketconcept)
Government treasury bills and bonds (HTM) : At present value (using amortisation concept)Prize bonds and other bonds: At costDebentures: At cost
Habib Bank Limited ^ Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
Loans and advances/investments are written off as per guidelines of Bangladesh Bank.
Such write off however will not undermine/affect the claim amount against the borrower.Detailed memorandum records for all such written off accounts are meticulously maintained
and followed up.
100%
100%
100%
100%,
100%
100%BL
50%
50%
5%
50%
50%
50%DF
20%
20%
5%
20%,
20%
20%SS
1%
0.25%
0%
2%
5%
2%SMA
1%
0.25%
5%
2%
5%
2%UC
Provision
Others
Small and medium enterprisefinance
Short-term agri-credit and micro
credit
Provision for loan to broker house,
merchant banks, stock dealers, etc
Other than housingfinance &professionals toset,in business
House building andprofessional
Consumer
Types of loans and advances
3.1.3 Loans and advances
a)Loans and advances are stated in the balance sheet on gross basis.
b)Interest/profit is calculated on daily product basis, but charged and accounted for quarterlyon accrual basis. Interest/profit on classified loans and advances/investments is kept in
interest suspense account as per BRPD circular no. 14 dated 23 September 2012 onMaster Circular: Loan Classification and Provisioning, and BRPD circular no 19 dated 27December 2012. Interest is not charged on bad and loss loans and advances/ investments
as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in
separate memorandum accounts.
c)Commission and discounts on bills purchased and discounted are recognised at the time of
realisation.d)Provision for loans and advances/investments is made based on the arrear in equivalent
month and reviewed by the management following instructions contained in BangladeshBank BRPD circulars no. 14 dated September 23, 2012, 16 of dated December 06, 1998, 9of May 14, 2001, 9 and 10 of August 20, 2005, 5 of June 05, 2006, 8 of August 07, 2007, 10of September 18, 2007, 5 of April 29, 2008 and 32 of October 27. 2010.
Rates of provision on loans and advances/investments are given below:
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
3.1.4Property, plant and equipment
Recognition and measurementAll property, plant and equipments are stated at cost less accumulated depreciation as per BAS16 "Property, Plant and Equipment". Land is measured at cost.
The cost is the amount of cash or cash equivalents paid or the fair value of the other considerationgiven to acquire an asset at the time of its acquisition or construction or, where applicable, the
amount attributed to that asset when initially recognised in accordance with the specific
requirements of the BFRS.The cost of an item of property, plant and equipment is recognised as an asset if-
it is probable that future economic benefits associated with the item will flow to the entity; and
the cost of the item can be measured reliably.
The cost of an items of property, plant and equipment comprises:(a)its purchase price, including import duties and non- refundable purchase taxes, after
deducting trade discounts and rebates.(b)any costs directly attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management.
(c)the initial estimate of the costs of dismantling and removing the item and restoring the site onwhich it is located, the obligation for which an entity incurs either when the item is acquired oras a consequence of having used the item during a particular period for the purpose otherthan to produce inventories during that period.
Subsequent costsThe cost of replacing part of an item of property, plant and equipment is recognised in the carryingamount of the item if it is probable that the future economic benefits embodied within the part willflow to the entity and its cost can be measured reliably. The carrying amount of the replaced partis derecognised. The costs of the day-to-day servicing of property, plant and equipment arerecognised in profit or loss as incurred.
DepreciationDepreciation on addition shall be charged from the month of acquisition whereas no depreciationshall be charged in the month of deletion.
Category of asset
Furniture and fixtures
Major Repairs and RenovationOffice equipment and electrical appliancesComputerMotor vehiclesSoftwareGain or loss on sale of property, plant and equipment is recognised in profit and loss statement asper provision of BAS 16 "Property, Plant and Equipment".
3.1.5Other assets
Other assets include all other financial assets and include fees and other unrealised incomereceivable, advance for operating and capital expenditure and stocks of stationery and stamps.
3.2 Liabilities and provisions3.2.1 Deposits and borrowings from other banks, financial institutions and agents
Deposits by customers and borrowings from other banks, financial institutions and agents include
interest-bearing borrowings redeemable at call and Bangladesh Bank refinance. These items are
brought to financial statements at the gross value of the outstanding balance.
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
3.2.2 other liabilitiesAs per BAS 37 "Provisions, Contingent Liabilities and Contingent Assets" the Bank recognisesprovisions only when it has a present obligation as a result of a past event and it is probable thatan outflow of resources embodying economic benefits will be required to settle the obligation andwhen a reliable estimate of the amount of the obligation can be made.
Other liabilities comprise items such as provision for loans and advances/investments, provisionfor taxes, interest payable, interest suspense, accrued expenses etc. Other liabilities are
recognised in the balance sheet according to the guidelines of Bangladesh Bank, income tax laws
and internal policy of the Bank.
3.3Reserve
Statutory reserve
As per Section 24(1) of the Banking Companies Act 1991, Banks which are incorporated outsideBangladesh do not require to set aside any reserve out of their profits.
Revaluation reserve
Revaluation reserve arises from the revaluation of treasury bills and bonds (HFT & HTM) inaccordance with the Bangladesh Bank DOS circular no. 5 dated 26 May 2008. The tax effects onrevaluation gain are measured and recognised in the financial statements as per BAS 12: Income
Taxes.
3.4Revenue recognition
Interest incomeInterest on loans and advances is calculated on daily product basis, but charged and accounted
for on quarterly basis. Interest on loans and advances ceases to be taken into income when such
advances fall under classification. It is then kept in interest suspense account. Interest on
classified loans and advances is accounted for on a cash receipt basis.
As per BRPD circular no; 6, dated 19 March 2015 and dated 16 February 2016, the Bank isrequired to identify its good borrowers and to pay 10% rebate on the interest earned from themduring the year. This amount is netted off with interest income.
Investment income
Income on investments is recognised on accrual basis. Investment income includes discount on
treasury bills , interest on treasury bonds, debentures and fixed deposits with other banks.
Fees and commission Income
The Bank earns fees and commissions from diverse range of services provided to its customers.
This includes fees and commission income arising on financial and other services provided by theBank including trade finance, credit cards, debit cards, passport endorsement, loan processing,loan syndication and locker facilities, etc. Fees and commission income is recognised on the basis
of realisation.
3.5Employee benefits
There is a Recognised Provident Fund (RPF) in which each employee contributes @10% of theirbasic salary which is matched by an equal amount of contribution by the Bank. The accumulatedProvident Fund balance including interest thereon are paid to the members at the time of theirseparation from the employment of the Bank in accordance with Bank's service rules. Contribution
to the fund is recognised as and when it accrues.
The Bank operates a funded gratuity scheme which has been approved by the National Board ofRevenue as a recognised gratuity fund with effect from January 2001. Employees are entitled to
gratuity benefit after completion of minimum 10 (ten) years of service with the Bank. The gratuityis calculated on the basis of last basic pay and is payable at the rate of one month's basic pay forevery completed year of service. The Bank's expense related to Gratuity is estimated on a yearly
basis and the amount is transferred to the fund and charged to expenses of the Bank.
18
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
3.11 Pledge of bank assets against any loan or guarantee
The Bank has not pledged any of its assets as security against any kind of loans taken from any
individual or institutions or against any guarantee given to a third party.
3.6 Interest paid on borrowing and other deposits
Interest paid on deposits and other accounts except fixed deposit is accrued on a monthly basis,but credited to customer account on half yearly basis. Interest on fixed deposit is accrued on adaily basis and credited to customer account on maturity of fixed deposit. Interest on borrowing
from other banks is accrued on a daily basis and paid through Bangladesh Bank account onmaturity.
3.7Provision for off-balance sheet exposures
In compliance with Bangladesh Bank guidelines off-balance sheet items have been disclosedunder contingent liabilities. As per BRPD circular no. 14 dated 23 September 2012, the Bank isrequired to maintain provision @ 1 % against off-balance sheet exposures.
3.8Provision for nostro accounts
According to Foreign Exchange Policy Department of Bangladesh Bank (FEPD), BangladeshBank circular no 677 dated 13 September 2005, Bank is required to make provision regarding theun-reconciled debit balance as at balance sheet date and these are certified by External Auditor.
3.9TaxationIncome tax expense comprises only current taxes. Current tax are recognised in profit or loss
except to the extent that it relates to items recognised directly in equity.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year,using tax rates enacted or substantively enacted at the reporting date, and any adjustment to taxpayable in respect of previous years.
Provision for income tax has been made @ 42.5% ( 2015: 42.5%) as prescribed in Finance Act2016 of the profit made by the Bank by considering taxable add-backs of income anddisallowances of expenditures.
3.10Off-settingFinancial assets and liabilities are offset and the net amount presented in the balance sheet when,and only when, the Bank has a legal right to set off the recognised amounts and it intends either tosettle on a net basis or to realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted under BFRSs, or for
gains and losses arising from a group of similar transactions such as in the Bank's trading activity.
Habib Bank Limited -Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
3.12 Risk Management at Habib Bank Limited, Bangladesh Branches
The possibility of losses, financial or otherwise, is defined as risk. The assets and liabilities of HBLBangladesh are managed so as to minimise, to the degree prudently possible, the Bank's exposureto risk, while at the same time attempting to provide a stable and steadily increasing flow of netInterest income, an attractive rate of return on an appropriate level of capital and a level of liquidityadequate to respond to the needs of depositors and borrowers and earning enhancement
opportunities.
The risk management of the Bank covers all core risk areas of banking i.e. i) Credit Risk, ii) ForeignExchange Risk, iii) Assets and Liability Management Risk, iv) Money Laundering Risk, v) InternalControl and Compliance Risk, and vi) Information and Communication Technology Risk.
i. Credit risk management
Credit risk is the risk of loss due to the failure of a borrower to meet its credit obligations inaccordance with agreed contract terms. Credit risk makes up the largest part of bank's riskexposures. The bank's credit process is guided by centrally established credit policies, rules andguidelines continuing a close-to-the market approach with an aim to maintain a well-diversified creditportfolio which produces a reliable and consistent return.
The Global Credit Policy of the bank is approved by the Board of Directors which ensures the systemof checks and balances are in place while taking credit decisions. Salient features of the riskapproval process are delineated below:
-Every extension of credit to any counterparty requires approval by the pre-defined level of
authority.
-All business groups must apply consistent standards in arriving at their credit decisions.
-Every material change to a credit facility requires approval at the appropriate^pre-defined level.
-Credit approval authority is assigned to individuals according to their qualifications andexperience.
II. Foreign exchange risk
Foreign exchange risk refers to the risk that a Bank may suffer losses as a result of adverseexchange rate movements during a period in which it has an open position, either in the form of abalance sheet asset or liability account, or an off-balance sheet item. Foreign exchange risk arises inthe Bank due to (i) structural imbalance between foreign exchange assets and liabilities, (ii)transactions with customers in foreign currencies and (iii) foreign exchange denominated revenuesand costs.
Business line managers are concerned with the consequences of potential exchange ratemovements on the domestic currency equivalent value for all foreign currency positions. The goal offoreign exchange risk management is to minimize the losses that the Bank may incur due to adverseexchange rate movements of currencies in which the Bank has an open position.
Foreign Exchange risk is primarily managed by Treasury Front office through strict compliance withthe set limits in different areas such as (i) Foreign Exchange Exposure Limit, (ii) Net open positionlimit, (ii) Intraday limit, (iv) Settlement limit, (v) Dealers trading limit, (vi) Dealers stop loss limit and(vii) Counter party limits.
Treasury Mid office (TMO) is a specialized unit formed with a view to implement robust market andliquidity risk Management practices as prescribed by internal policies and Bangladesh Bankguidelines. To minimize foreign exchange risk. Treasury Mid office analyzes the Market trend andmonitors treasury dealings and exposures and reports to local and global Risk Management. TMOalso monitors all limits set by the Bank and Bangladesh Bank.
Treasury Back office is responsible for settlement of all deals done by front office, its transactionsand reporting to Treasury Mid Office (TMO) and Bangladesh Bank in line with the policies andguidelines.
Hablb Bank Limited- Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
•v. Prevention of money laundering
To ensure implementation of Anti-Money Laundering Policies and regulatory directives, Habib Bankhas restructured the Central Compliance Committee (CCC) ensuring member from General Banking,IT, HR as instructed by BFIU. The purpose of the Central Compliance Committee is to provide aguide line within which to comply with laws and regulations to safeguard the bank from potentialAML/CFT CDD risk. AML/CFT/CDD policy and procedure has been set up with detailed guidelines forconducting due diligence on customers end transactions have been established for sanctionscreening prior to account opening and the periodical review of existing customer portfolio.Transaction monitoring is conducted through automated system SSW and Manias. Processes forcustomer Risk rating have also been implemented. Training has been taken as a continuousprocess for creating/developing awareness among the officers through centralization of accountopening , account deactivation and activation etc. HBL Bangladesh has ensured further control on itsAML/CFT program. CCC also meet BAMLCOs on quarterly basis to provide guidance and resolutions
on issues branches are facing.
v. Internal control and Compliance Risk
HBL Bangladesh ICU prepares its annual monitoring plan as per the approved ICU policy for HBLBangladesh. The unit carries out reviews of risk management procedures, internal control systems,and governance processes. This also involves periodic review of transactions, testing of controlsystems, special investigations, and assessments of regulatory compliance. Any identifiedgaps/discrepancies/weaknesses are followed up till their rectification. All functions/ departments /
units of HBL Bangladesh, fall within scope of ICU reviews,
vl. Information and communication technology Risk
The Bank maintains its in-house IT department for the support and services of IT systems where thecore system is centralized in Head Office, Karachi, Pakistan. IT department maintains performancelevel agreement and service level agreement with business lines for service quality assurance whichdescribes all the IT services with target service up time and response time for troubleshooting or anyIT related requests. For more tracking on service issue HBL Bangladesh IT has already beenintroduced incident Management system to all HBL Bangladesh Users to log the Incident and ITPersonnel will generate report in order to submit seniors for performance tracking by IT. ITdepartment reviews and ensures appropriate controls and security standards are in place and are incompliant with group IT and regulatory requirements. It also performs Risk Assessment on various ITsystems through Head Office, Karachi, Pakistan and processes to mitigate operational risks. HBLBangladesh has been recently introduce another Risk based approach which is known as 2 FA (TwoFactor Authentication) authentications for Fund Transfer between HBL to HBL. The bank has abusiness recovery Plan (BRP) in place to ensure business continuity in case of any major disaster.To overcome Risk on SMS, HBL BD IT has been setup local SMS Server to generate transaction
SMS alert for their client.
21
ill. Asset liability management riskALM risk arises in absence of proper mechanism to address the risk of mismatch between assetsand liabilities either due to liquidity or change in interest rate. HBL Bangladesh to ensure bettermanagement of Balance Sheet Risk has formulated policies for Market Risk and Liquidity RiskManagement. Besides, Asset Liability Committee (ALCO) of the Bank meets once in a month toanalyze the economic indicators, review the liquidity position, pricing/interest rate structure and
suggests action plan strategies to manage Balance sheet Risk.
Habib Bank Limited- Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
Habib Bank Limited- Bangladesh Branches
Notes to the financial statements
For the year ended 31 December 2016
3.13Related party transaction
The Bank, not being incorporated in Bangladesh, operates in Bangladesh under the banking licenseissued by Bangladesh Bank and therefore the key management personnel of the Bank for thepurposes of BAS 24 are defined as those persons having authority and responsibility for planning,directing and coordinating the bank, being members of the board of directors of the parent company,its senior management and close members of their families and companies they control or havesignificant influence. There were no transactions between the Bank and the key management
Dersonnel (2015: Nil)3.14Audit committee
The Bank being a branch of a foreign bank does not have a local Board of Directors from whom toselect an Audit Committee. HBL Bangladesh has obtained a dispensation from Bangladesh Bankthat the Bank does not need an Audit committee as it is incorporated outside Bangladesh vide letterno: BRPD (R-2) 651/9(47) Kha/2015-1682 dated March 02, 2015. Nevertheless in Bangladesh thereare seven operating branches which are reviewed by the Head Office based Internal Audit Teamperiodically and submit comprehensive report which are regularly reviewed and actioned.
3.15Credit rating of the Bank
Pursuant to the Bangladesh Bank's BRPD Circular No. 06 dated July 05, 2006 and in order tosafeguard the interest of investors, depositors, creditors the bank has completed the credit rating by
Credit Rating Information and Services Limited (CRISL).
Credit Rating Information and Services Limited assigned "A+" (Pronounced A plus) rating to HBLBangladesh in the Long term and "ST-2" rating in short term for the year 2015. Commercial banksrated in this category is adjudged to be very good financia^, healthy and sustainable franchises anda first rate operating environment. Rating in this category is characterized with commendable positionin terms of liquidity, internal fund generation and access to alternative sources of fund. The rating for
2016 is yet to be completed.
3.16Events after reporting period
All material events after the reporting period are considered and where necessary, adjusted for ordisclosed in accordance with BAS 10: Events after the reporting period.
3.17Changes in accounting policies
The Bank has consistently applied the accounting policies as set out in note 3: significant accountingpolicies. During the year ended 31 December 2016, the Bank has not adopted any new standardsand amendments to existing standards, having any material impact on preparing these financial
statements.A number of new standards and amendments to standards are effective for annual periods beginningafter 1 January 2018 and optional earlier adoption is permissible. However, the Bank has not earlyadopted these new or amended standards in preparing these financial statements. Some of these
new or amended standards relevant to the Bank are disclosed below:
(a)8FRS 9 Financial Instruments
BFRS 9, published in July 2014, replaces the existing guidance in BAS 39 Financial Instruments:Recognition and Measurement. BFRS 9 includes revised guidance on the classification andmeasurement of financial instruments, a new expected credit loss model for calculatingimpairment on financial assets, and new general hedge accounting requirements. It also carriesforward the guidance on recognition and derecognition of financial instruments from BAS 39.BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted.
The Bank is assessing the potential impact on its financial statements resulting from the
application of BFRS 9.
(b)BFRS 15 Revenue from Contracts with Customers
BFRS 15 establishes a comprehensive framework for determining whether, how much and whenrevenue is recognised. It replaces existing revenue recognition guidance, including BAS 18Revenue, BAS 11 Construction Contracts and BFRI 13 Customer Loyalty Programmes. BFRS15 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted.The Bank is assessing the potential impact on its financial statements resulting from the
application of BFRS 15.
22
22,68722,687
?3>68,555
22,68773 945 868
35,26235,282
56,147,781
35,282 II56,112,499 N
119,259,596710,216,66841,463,151
1214,766,126 ||758 079 498
49,094,855 II•
Local currencyForeign currenciesCash in ATM
4.2Balance with Bangladesh Bank and its agent bank
Balance with Bangladesh BankLocal currencyForeign currencies
4.3Cash Reserve Requirement (CRR) and Statutory Liquidity Ratio (SLR)
Cash reserve requirement (CRR) and statutory liquidity ratio (SLR) have been calculated and maintainedin accordance with Section 33 of the Banking Companies Act 1991 and subsequent BCD circular no. 13dated 24 May 1992; BRPD circular no. 12 dated 20 September 1999 and BRPD circular no. 22 dated 6November 2003; Bangladesh Bank DOS circular no. 03 dated 23 March 2005; DOS circular no. 06 dated05 October 2005 and MPD circular no. 04 dated 01 December 2010 and MPD circular no 04 dated 24
June 2014.4.3.1Cash reserve requirement (CRR)
Conventional bankingAs per Bangladesh Bank MPD circular no. 04 dated 24 June 2014, Bank has to maintain CRR @ 6,5% onfortnightly cumulative average basis and minimum @ 6% on daily basis.
Fortnightly Bank's CRR maintenance:Required reserve (6.5% of demand and time liabilit ies)I 400,671,880 || 417,223,910 [Actual reserve maintained (average)| 615,438,010 II 536,364,606 |
Surplus214.766,130119,140,696
4.3.2Statutory liquidity ratio (SLR)
As per the MPD circular nos. 5 dated 01 December 2010, Bank's has maintained 19% Statutory LiquidityReserve (SLR). On a new MPD circular nos. 2 Issued on 1 dated 23 June 2014, 13% SLR has beenmaintained on the Bank's time & demand liabilities in the form of treasury bills, bonds and debenturesincluding foreign currency balance with Bangladesh Bank. Statutory Liquidity Reserve maintained by the
Bank, Is shown below:
13% of average demand and time liabilities:
Required reserveActual reserve maintained (note 4.3.3)Surplus1,220,596,720 1^0
4.3.3Composition of actual reserve held (as per statement submitted to Bangladesh Bank)
Cash in handUnencumbered approved securitiesOthers
5. Balance with other banks and financial Institutions
In Bangladesh (note 5.1)Outside Bangladesh (note 5.2)
S.1 In BangladeshCurrent Account withDutch Bangla Bank Ltd
In hand (note 4.1)Balance with Bangladesh Bank (note 4.2)
4,272,623,369
539.217,1223,733,406,247
41,463,151
36,843,0472,991,1041,629 000
4.314.086.520
41,463,1514,272,623,369
BDT
4,240,386,617
597,388,036 ||3,642,998,58 ij|__
49,094,855
44,026,189 II2,372,6662 696 000 ||
4,2B9,481,472
49,094,855 II4,240 386 617 II
2016BDT
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
1,758,079,4951,710,334,217
placed under lien with Bangladesh Bank innaintenance.
838,463,065871,752,252
118,900
13,399,01212,858,478
3,300.85169.969,208
13,621,24613,189,387
351,370,58567,828,668
1,542,937,967
99,433,382277,042,342
1,166,462,2431,244,594,572
249,287,87849,935,753
945,370,942
1,542,937,967167,277,350
118,900
.710.334.217
710,334,217
•
1
1,758,079,495
1,758,079,495 II
62,808,000300,000,000
78,510,000
300.000.000
78,740,000190,000,000150,000,000190,000,000
53,583.192
1,617,395102.420
51,863,377
20,362,676
588,1193.470,0253,010,7788.463,5564,830,198
nstitutionsnclal
48,188,524
1,143,920234,826
46,809.778
7.923,975
745,671158,125492,912705,931
5 821,336
275,121,8011,482,731,194
226,500
1,244,594,572]513,258,423
226,500 ||
Treasury bills and bonds equivalent to BDT 802,480,486.33 arecompliance with Bank Companies Act 1991 requirement on capital
5.2Outside Bangladesh (A+B)
5.2.1 A. Non-group nostro
National Bank of Pakistan, TokyoStandard Chartered Bank, KolkataICICi Bank Ltd, KolkataHabib Allied International Bank pic, LondonDevelopment Credit Bank Ltd, Mumbai
B. Group nostro
Habib Bank Ltd, KarachiHabib Bank Ltd, BrusselsHabib Bank Ltd. New York
5.3Maturity grouping of balance with other banks and fl
Repayable - on demand-up to 1 month-over 1 month but below 3 months-over 3 months but below 1 year-over 1 year but below 5 years
6.Money at call and on short notice
BRAC Bank LimitedSoutheast Bank LimitedStandard Bank LimitedAB Bank LimitedIFIC Bank LimitedThe City Bank LtdNational Bank of Pakistan
7.InvestmentsGovernment securities (note 7.1)Others
7.1 Government securities
Treasury bills (note 7.1,1,1 )Treasury bonds ( note 7.1.1.2 )Prize bonds
7.1.1.1Treasury bills
91 days treasury bills182 days treasury bills364 days treasury bills
7.1.1.2Treasury bonds2 years BGTB5 years BGTB10 years BGTB15 years BGTB20 years BGTB
7.1.1.3Investments as per Bangladesh Bank circular:
Held for trading (HFT)Held to maturity (HTM)Others
2016BDT
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
4.921.528.1171,881,396,8001,082,006,611
676.912,425325.619,032308,420,430442,027,171201,579,763
3.565,885
4.921,528,1173,222,313,2311,673.419.071
25.795.815
4,921,528,11716,425,743
1,098,628,4911,574,484,4751,608,614,005
297,189.536326,185.867
4.550,9214,550,921
-
4,916,977,196
4,916,977,1961,760,056,5871,752,258,641
14,309,78340,807,35725,795,815
399,710,63986,843,186
4,671.146832,524,042
4.921.528.1174,550,921
1 4,916,977,196
1.710.333.317943,143,09159,666,342
209,565,88899,433,382
398,524,614
BDT2015
4.792.739.3511,939,802,189
860,702,129673,860,017226,459,988299,579,155442,480,436346,289,552
3,565,885
4,792,739,3512,878,515,2301,879,740,380
34,483,741
4,792,739,35129,076,078
837,971,7681,854,920,3651,505,295,058
214,973,526350,502,555
9.051.077-
9,051,077
4,783,688,274
4,783,688,2741,663,091,7992,025,381.891
10,751,63940,807.35734,483,741
224,533,377289.637,769
4,671,146490,329,557
4.792.739.3519.051,077
4,783,688,274
1.758.079.49594,059,170
419,199,253995,306,695249.514,378
BDT2016
OthersGeneral tradersFoods, tobacco and beverages, sugarTextileShoes and leather garmentsChemicals and PharmaceuticalsMetals and alliedAutomobile and transportation equipment
8.8 Industry-wise concentration
Industrial AdvancesAdvances to Customers GroupAdvances to Officers and Staff of the Bank
8.4 Significant concentration
More than 5 yearsOver 1 year but below 5 yearOver 3 month but below 1 yearOver 1 month but below 3 monthsUp to 1 monthRepayable on demand
8.3 Maturity-wise grouping
Foreign bills purchased (FBP)Outside BangladeshInland bills purchasedIn Bangladesh
8.2 Bills purchased and discounted
Including short term loanOutside Bangladesh
OverdraftsShort Term LoanPayment against documentsCash creditStaff loansTrust receiptsSME loanLoans against imported merchandise (LIM)Term loanIn Bangladesh
8.1 Loans, cash credits, overdrafts, etc/investments
Bills purchased and discounted (note 8.2)Loans, cash credits, overdrafts, etc/investments (note 8.1)
8. Loans and advances/investments
More than 5 yearsMore than 1 year but not more than 5 yearsMore than 3 months but not more than 1 yearUp to 3 monthsOn demand
7.1.1.4 Maturity-wise grouping
Hablb Bank Limited • Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
viii. Maximum amount of advances including temporaryadvances made at any time during the year to thecompanies or firms in which the directors of the bank areinterested as directors, partners, managing agents or incase of private companies as members.
ix. Due from other banking companies.
x. Amount of classified loans on which interest has not beencharged:
26
4.319.741.4514.446.181.971
2,031,043,727
2,415,138,244
1,845,579,068
2,474,162,383
Particulars of loans and advances
i. Debts considered good in respect of which the Bank is fullysecured
ii. Debts considered good for which the bank hold!security other than the debtors personal guarantee,
iii. Debts considered good secured by the personalundertakings of one or more parlies in additionpersonal guarantee of the debtor.
iv. Debts adversely classified; provision not maintained thereagainst.
v. Debts due by directors or Officers/Executive of the Bank orany of them taken either separately or jointly with any other
persons.
vi. Debts due by companies or firms in which the directors ofthe bank are interested as directors, partners or managingagents or in the case of private companies, as members.
vii. Maximum total amount of advances including temporaryadvance made at any time during the year to directors orexecutives or manager or officers of the bank or any ofthem taken severally or jointly with any other persons.
1,538,341,997167.082.488
4,921,528.117475,346,146
46.448,309428,897,837
4,446.181.97141,810,761
4,792,739,351472,997,899
472,997.899 ][_
4,319,741,45236,535,037 ||
90,059,0151,298,212,8633,533,256,239
2015BDT
8.6Geographical location-wise distribution
Sylhet DivisionChittagong DivisionDhaka Division
8.7Grouping as per classification rules
Unclassified
StandardSpecial mention accountTotal unclassified loans and advances
ClassifiedDoubtfulBad/LossTotal classified loans and advancesTotal
8.8Large Loan disclosureTotal no of customers having facility of the 10% of the capital of the BankNo of Parties3Total amount outstanding1,587,232,129
FundedI 1,244,480,0061|Non funded|342,752,124 ||
84,004,701 I1,308,989,2943,399^45,356 ||
2016BDT
Hablb Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
6.7H.730.7116.480.936.43916,112,421
367,097,8334,297,563,0441,800,163,141
36 670 909 ||449,302,313
4,346,252,5691,886,504,920 [I
. Deposits and other accounts
Current deposit and other accounts (note 11.1)Fixed deposit (note 11.2)Savings bank deposits (note 11.3)Bills payable
62,800,662
929.831,662'
48,000,00014,.
25,703,599
955,534,651
15,700,000 |10,003,599 ||
1.029.555.152 1.059.214.182
22,652,0673.790,420
558,815929,831,052
12.007,6961,774,886
582,9031,907,300
9,547,1371,053,2091,384,258
955,534,651805.000791.098
1,551.4831,766,800
85,759,490349,550
- I
43,386,62189,840,402
3,099,690
3,459,625359,935
3,459,625 ||
47,233,69990,418.923
I
20,824,01819,199,04550,312,36342,891,597
11.558,968 II24,829,21550.863,17850,401,261 II
4,550.921
4,550,921
138,422,390138,619,914
138,619,914
30,625.993107,993,921
9,051,077
9,051,077 ||
138,422,390138,619,914
138,619,914
138,619,914 II
2015BDT
50,907,029 I6,214,487 ||
2,936,9636,114,114 ||
2016BDT
10.1 Opening balanceAdd: Advance Income Tax paid during the year
Tax deducted at source during the yearAddition during the yearAdjustment / reconciled during the yearClosing balance
xi. Cumulative amount of written off debt:
Opening balanceAmount of debts written off for the current year
Recovery against write off loansClosing BalanceLawsuit filed against written off debts
8.10Bills purchased and discounted
Payable outside BangladeshPayable in Bangladesh
8.11Maturity-wise grouping of bills purchased and disci
On demandPayable within 1 monthMore than 1 month but less than 3 monthsMore than 3 months but less than 6 months
9.Fixed assets Including premises, furniture and fixtures
Furniture and fixturesOffice equipment and electrical appliancesComputerMotor vehicles
Less: Accumulated depreciation/ Amortization
9.1 Intangible Asset
Software
Less: Amortization
Details in Annex-A
10.Other assets
Income generatingInterest receivableEncashment of sanchya partrays awaiting realisation
Non income generating
Advance depositsStationery and stamps on handPrepaid expensesCapital WIPAdvance Tax (Note 10.1)Clearing proceeds awaiting accountOther assetsAdvance rent
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
248,730,538
652,326
58,535 969157,883,643)
264,787,696
16,057,158
20,623,876 II(4,566,718)11
356,072,133(107,993,921)
1,567,899,8571,472,514,031179,103,737
2,091,675173,000
923.573,84358,141,23815,500,00045,200,000
248,730,538
255,524.9841,405.625
173.000927,073,843
60,434.70916,150,00042,350,000
264,787,696
1,347,480,5161,947.169,6091,904,825,8441,281,460,470
1,557,655.674 ||1^404,854,1511,227,672,4281,019,968,2041,508,580,254 II
69,217,032972,802291,683384.119
47,302
40,608,105394 708701,986131,883184,484
367.097,833
4,297,563,044
449,302,313
4,346,252,569
70.912,93814 033,064
140.631,925503,431,829239,229,472831,923,913
42,021,16612,283,912
112,147,179814,783,37391,819,981
813.449,309
2015BDT
2016BDT
11.1Current deposit and other accountsLocal currency current depositsForeign currency current depositsSpecial notice time depositsCurrent deposits from banksSundry depositsGroup vostro (note: 11.4)
11.2Fixed deposit
Deposit from customers
11.3Savings Deposits
11.4Group vostro
Habib Bank Ltd, Oman (BDT)Habib Bank Ltd, Dubai (BDT)Habib Bank Ltd, Mauritius (US $)Habib Bank Ltd, Colombo (USD)Habib Bank Ltd, Karachi (ACU $)
11.5Maturity-wise grouping
Repayable - on demand-up to 1 month-over 1 month but below 3 months-over 3 months but below 1 year-over 1 year but below 5 years
12. Other liabilities
Specific provision against classified loans and advances (note 12.1)General provision against unclassified loans and advances (note 12.2)General provision against off balance sheet items (note 12.3)Interest suspense account (note 12.4)Provision for taxation (note 12.5)Provision for audit feesProvision for professional feesOther liabilit ies (note 12.6)
12.1 Specific provision against classified loans and advances
Movement in specific provision:Provision held at the beginning of the yearLess: Fully provided debts written off during the yearAdd. Recoveries of amounts previously written offAdd: Specific provision for the yearLess. Recoveries and provisions no longer requiredAdd: Net charge to profit and loss account during the yearAdd: Transfer from general provisionProvision held at the end of the year
Habib Bank Limited - Bangladesh Branches
Notes to the financial statementsFor the year ended 31 December 2016
179,103,737139,075 691
47,8151 597 510
10,899,12218.184.3399,299,260
255.524,984159 315,356
97.31550.037,48618,964,24517 811 3239,299,260
927,073,843
888,573,84335,000,000
923,573,8433,500,000
12.3Provision for off-balance sheet items
Movement in general provision:Provision held at the beginning of the yearAdd : Amount provided during the yearLess: Recoveries and provisions no longer requiredAdd: Net charge to profit and loss account during the yearLess: Transfer to genera! provision on unclassified loansAdd: Transfer to off-balance sheet items from general provisionProvision held at the end of the year
Off-balance sheet items16,038,212
12.4Interest suspense account
Balance at the beginning of the yearAdd: Amount transferred to interest suspense during the year
Less: Amount recovered in interest suspense during the yearLess: Amount written off during the year
Balance at the end of the year
12.5Provision for taxation
Balance of provision at the beginning of the yearAdd: Provision made for the yearAdjustment/ reconciled during the yearBalance of the end of the year
Income tax assessments for few years are pending with different levels of assessing authority and/or atappeals stage The Bank's management is regularly monitoring all pending tax assessments andconfident that the existing level of provision for tax is adequate to offset any additional claims that mayarise from eventual settlement of these tax assessments.
12.6Other liabilitiesProvision against BCCI claim1'1
Other payableAccrued expensesRouting accountExcess cashInterest payable
(*) This includes the amount provided as provision against the decreed afiled by Eastern Bank Ltd. successor of BCCI Overseas Ltd.
58.141.23824 038,552
82,179,78924,038,552
62,570,01319,609,776
Excess/(Shortage)111,788
15.500.000
60.434,7001,348,506
61,783,2141,348.506
58,141,2383,641,976
16,150,000Maintained
16.150.000
1,848,000 |(6,368,000)1
6,820,000 |(6,170,000)11
6,363,269
1,357,1145,006,154
ess/(Shortaqe)
45.200,000
5,200,000
10,650.000(5,450,000)
307,137,696
42,350,000264,787,696
Maintained Exo
42.350.000
(2,850,000)
4,700,000 II(7.550,000)11
12.2 General provision against unclassified loans and advances
Movement in general provision:Provision held at the beginning of the yearAdd : Provision made during the yearLess: Recoveries and provisions no longer requiredAdd: Net charge to profit and loss account during the yearAdd/(Less): Transfer from general provision to off-balance sheet
Less: Transfer to specific provisionProvision held at the end of the year
Provision for
Un-classified loans and advance: 40,992,886Classified loans and advances 259,781,541
2015BDT
2016BDT
Habib Bank Limited - Bangladesh Branches
Notes to financial statementsFor the year ended 31 December 2016
360,466,000147,326,520
448.195,000 I225.174,608 ||673,369,608
Other contingent liabilities
Bangladesh Sanchay Patras (BSPs) and US Dollar Bonds
i in respect of guarantees given favoi
1.826.687.98115.1 Letter of guarantees
Money for which the Bank is contingently li i
GovernmentBank and other financial institutionsOthers
447,292,938418,295,200431,714,176
21,593,147507,792,520
2.277,190,817
835,589,514312,217.191349,344,617
138.024.859
111,278,192
26,746,667
89,418.411
138,024,859
(48,606,448)
306,506,2344.306.506,2344,000,000,000
1.64%84.96%
86.60%84.96%
14,226,978,057
4,306,506,234
81.593.560
1 54,405,52327,188,037
4,224,912,674
4,224,912,674
4.086,887,815138.024,859
264,982,8134,264,982.8134,000,000,000
1 63%86 61%
88.24%86.61%
15.159,167,767
4,264,982,813
78.B91.028
58.500,00020,391,028
4,186,091,786
4,186,091,786
4,096,673,37589,418,411
4,380,385,742
4,086,887,815138,024,859155,473,068
4,24b, 34B,^82
4,096,673,37589,418,41159 254,597
13.2 Capital adequacy ratio
Total assets including off-balance sheet itemsTotal risk weighted assetsCapital to Risk weighted assets ratio (CRAR)Common equity Tier -I to RWATier -I Capital to RWATier -II Capital to RWAMinimum Capital RequirementActual Capital MaintainedSurplus Capital as per Basel-Ill
14.Retained earnings
Balance at the beginning of the yearAdd: Profit^ Loss for the year after tax brought forward from profit
& loss AccountLess: Transferred to capital fundBalance at the end of the year
15.Contingent liabilities and commitments
Acceptances and endorsementsLetter of guarantees (note 15.1)Irrevocable letter of creditBills for collectionOther contingent liabilities (note 15.2)
Capital fundRetained earningsRevaluation reserve
13.1 Capital Adequacy ratio
Tier -1 CapitalFunds received from Head OfficeRetained earnings
Additional Tier -ITotal eligible Tier -I Capital
Tier - II CapitalGeneral provision against unclassified loans and ad vaneRevaluation reservesTotal eligible Tier -II Capital
Total Regulatory Capital as per Basel -III
2016BDT
Habib Bank Limited - Bangladesh Branches
Notes to financial statementsForthe year ended 31 December 2016
1,990,4687,912,862
66,07779,120
3.986.1233,771,219
5,748,01417,578,2513,605,089
29.740,54369.740,654
1,774.8957,505,696
14.7573,611,5822,997,3928,000,0003,563,088
26,501,26810,509,97532,330,45570,443,570
21. Salaries and allowances
SalariesHouse rent for executives other than the Chief Executive's
AllowancesBonus paid to employeesBank's contribution to Provident FundBank's contribution to Gratuity FundConveyance allowancesMedical expensesElectricity & Gas chargesTelephone chargesLeave salaryOthers
2,074,16419.998
3,118.4874,471,889
157,5001,565,8081,039,847
2,459,4342,321,3941,178,1282,014,361
263,2001,383,642
565,301
10S.346.33567,729,904
452,5913,125,585
14,903,9485,938,8643,381,1677.212,3163.601,960
40,290,224651,291
1,658,73514,655,3682,564,3231,279,982
11,909,6534,255,488
134.743.495134,743.495
76.472.18376,472,183
1,761,91712 467,440
347,597,68915,215,109
2,263,042 ||15,862,122
255,911,66014,599,911 ||
17.Interest paid on deposit and borrowings etc
Interest on savings depositsInterest on fixed depositsInterest on special notice deposits and short term deposits
Interest on borrowing
18.Income from investmentsInterest on Govt. Securities {treasury bills and treasury bonds)
19.Commission, Exchange and BrokerageCommission A/C - AcceptancesCommission on BillsCommission on DDfiT/MT'POCommission on L/GCommission on L/CCommission on LIM.PADCommission on PSP/NSCExchange earning
20.Other operating income
Postage charges recoveriesTelegram/Tel ex/Swift charges recoveriesRent on savings deposit lockersHandling and service chargesIncidental charges recoveriesNet pro^^t on sale of fixed assetsMiscellaneous income
486.905.957_408.498.734 .5,504,8785,563.7271,322,817
37,578,08947,256,441
3,098,873160,459,482226,121,650
1,144,76212,907,265
1,615,26627,692,54043,723,506
151,013,714170.401,681 II
16. Interest income
Interest on term loansInterest on overdraftInterest on cash creditInterest on call loansInterest on payment against documents (PAD/IBP/FBP)
Interest on staff loansInterest on balance with Bangladesh BankInterest on balance with other Bank
2015BDT
Habib Bank Limited - Bangladesh Branches
Notes to the financial statements
For the year ended 31 December 2016
15,137.70212,766,862
1,528,7765,239,1002,351,1731,948,1961,589,6503,280,5891,931.1811,218.780
590,446581,507
1,069,895352,24791,63650,320
353,013
14,405,51910,407,673
1,789,6315,067,2392,209.1101,352,4632,006,5481,831,4171,857,7081,947,304
406,639615,071403,936361,110
301,162158,403
312,2501,920.292
14 967 207
6,469,986"
1,834,0001,842,539
979,4281,814,019
2S45154
54.971.068
1,022,4864,290,0475,536.975
44,121,560
20,125,407
41,150826,500
2,237,53117,020,226
6,025,o88
" "55,9371,927,8591,412,575
782,0821,847,137
11,093 I2,457,322 ||
1.164.232
767,482 I396,750 ||
51.120.483
1,478,359 I4,204,5614,307.115
41,130,449 ||
22.Rent, taxes, rates, insurance, electricity, etc.
Godown rentLighting chargesInsurance chargesRent on Bank premises
23.Legal expenses
Law chargesConsultancy charges
24.Postage, stamps, telecommunication, etc
Telegram chargesPostage, courier and SWIFT charges
25.Stationery, printing, advertisement, etc
Newspaper expensesCSR expensesPrintingStationeryAdvertisement charges
26.Depreciation and repairs to bank's assets
Repairs and renovationSoftware maintenance expensesComputer and office equipment maintenanceDepreciation (Annex A)
27.Other expensesBranch trade license feeWork permit and visa chargesOther revenue expenditureClearing house chargesTraining expensesConveyance chargesWater and diesel expensesTelephone charges (office use)Entertainment chargesTraveling expensesSubscriptionMotor car expensesOffice maintenance chargesLease line rent and e-mail expensesVISA debit card maintenance feeMiscellaneous expensesOutsourced charges
Habib Bank Limited - Bangladesh Branches
Notes to the financial statements
For the year ended 31 December 2016
Mohammad Nazmul Huq BhuiyanHttJb Yousuf
Head-FinanceRegional iSeneral Manager
for Habib Bank Limited — Bangladesh Branches
28.Related Party Transactions:28.1Transactions with Nostro Accounts
Some branches of HBL maintains vostro accounts with HBL Bangladesh for interbranch transactionsettlement. The disclosure of the year end balance is considered as the most meaningful informationduring the year. As at year end, the balance with all Vostro accounts (including group) are given in
Annexure-lll
28.2Transactions with Vostro AccountsSome branches of HBL maintains vostro accounts with HBL Bangladesh for interbranch transactionsettlement. The disclosure of the year end balance is considered as the most meaningful informationduring the year. As at year end, the balance with all Vostro accounts (including group) are given in
Annexure-tV
29.Events after the reporting periodNo material events which have occurred after the reporting period which could affect the values stated in the
financial statements.
30.Others(i) Figures relating to the previous year included in this report have been rearranged, wherever considered
necessary, to make them comparable with those of the current year without, however, creating any impacton the operating result and value of assets and liabilities as reported in the financial statements for the
current vear.(ii) Figures in these notes and in the annexed financial statements have been rounded off to the nearest BDT.
(iii) These notes form an integral part of the annexed financial statements and accordingly are to be read in
conjunction therewith.
(iv) the number of employees engaged for the whole year who received a total remuneration of BDT
36.000.00 or above were113 (2015: 120)
(V) Highlights of the overall activities of the Bank have been presented in Annexure -I
Habib Bank Limited - Bangladesh Branches
Notes to the financial statements
For the year ended 31 December 2016
127,273,3420,21%0.62%
1,218,009,82111,345,826,391
5.67%1,745,584
248,730,538475,346,146
26,746,6679,66%
75.94%1,826.687,9814,921,528,1176,480,936,439
12,563,836,212306,506,234
4,306,506,234N/A
BDT2015
76,472,183-0 38%-1 06%
1,665,029,38711,226,947,564
4.67%5,006,154
264,787,696472,997,899(48,606,448)
9,87%71.33%
2,277,190,8174,792,739.3516,718,730,711
12,881,976,950264,982,813
4.264,982,813N/A
BDT2016
ncome from investment
Return on assets (ROA) [PAT/ Average assets)^orrowing))Return on investment (ROl) [PAT/(Shareholders' equity +Non-interest earning assetsInterest earning assetsCost of fundProvision surplus against classified loansProvisions kept against classified loansAmount of classified loansProfit after tax and provisionPercentage of classified loans against total loans and advancesAdvance deposit ratioTotal contingent liabilities and commitmentsTotal loans and advancesTotal depositsTotal assetsCapital (deficit)/surplusTotal capitalPaid-up capital
Particulars
1918
1716151413121110987654321
SI No.
Habib Bank Limited - Bangladesh Branches
Highlights on the overall activitiesFor the year ended 31 December 2016
4.830.19878 5100
06766
S3^83.I9178 5100
869,227
5.821,336
497,912
705,931
48.188^25
Ktubtalemtaka
78.740073.93)
78 7400
tichanie rate7016
or 1016
USD
JPY
NostroA/CDevelopment Credit Bank Ud, UumbatStandard Clmrteted Bank. Kolkatta
H.btb Allied International Bank pie. London
Noa-^oateo
Rjret̂ nAccount Type
labib Bank Ud, Brussels