un consolidated annual report 2011

7/30/2019 Un Consolidated Annual Report 2011

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VISION STATEMENT

TO BE A QUALITY FINANCIAL SERVICE PROVIDER

MAINTAINING THE HIGHEST STANDARDS IN

BANKING PRACTICES

MISSION STATEMENT

TO BE A STRONG AND STABLE FINANCIAL INSTITUTION

OFFERING INNOVATIVE PRODUCTS AND

SERVICES WHILE CONTRIBUTING

TOWARDS THE NATIONAL ECONOMIC AND

SOCIAL DEVELOPMENT


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Contents

Corporate Information 1

Directors' Report 2

Statement of Compliance with the Code of Corporate Governance 7

Review Report to the Members on Statement of Compliance

with the Best Practices of the Code of Corporate Governance 9

Statement on Internal Controls 10

Auditors' Report to the Members 11

Statement of Financial Position 12

Profit and Loss Account 13

Statement of Comprehensive Income 14

Statement of Changes in Equity 15

Cash Flow Statement 16

Notes to the Financial Statements 18

Report of Shariah Advisor 88

Notice of Annual General Meeting 89

Pattern of Shareholding 91

Consolidated Financial Statements 93

Branch Network 173

Form of Proxy


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Corporate Information

Board of Ali Raza D. Habib Chairman

Directors Abbas D. Habib Chief Executive & Managing Director

Anwar Haji Karim

Hasnain A. Habib

Imtiaz Alam Hanfi

Murtaza H. Habib

Qumail R. Habib Executive Director

Shameem Ahmed

Syed Mazhar Abbas

Wazir Ali Khoja

Audit Syed Mazhar Abbas Chairman

Committee Ali Raza D. Habib Member

Anwar Haji Karim Member

Shameem Ahmed Member

Murtaza H. Habib Member

CompanySecretary A. Saeed Siddiqui

Statutory Ernst & Young Ford Rhodes Sidat HyderAuditors Chartered Accountants

Legal Liaquat Merchant AssociatesAdvisor Advocates and Corporate Legal Consultants

Registered 126-C, Old Bahawalpur Road,Office Multan

Principal 2nd Floor, Mackinnons Building,Office I.I. Chundrigar Road,

Karachi

Share M/s. Gangjees Registrar Services (Pvt) Ltd.Registrar 516, Clifton Centre, Khayaban-e-Roomi,

Block - 5, Clifton, Karachi-75600.

Website www.bankalhabib.com


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Directors' Report

The Directors present the Twenty-first Annual Report together with the audited financial statements of theBank for the year ended December 31, 2011.

By the Grace of Allah, January 12, 2012 marked the twentieth anniversary of Bank AL Habib's commencementof business. We are thankful to the Almighty for His blessings which have resulted in the Bank's continuedgrowth and strength over the last two decades.

The operating results and appropriations, as recommended by the Board, are given below:

(Rupees in '000)

Profit for the year before tax 7,155,339

Taxation (2,621,859)

Profit for the year after tax 4,533,480

Unappropriated profit brought forward 2,992,475

Transfer from surplus on revaluation of fixed assets net of tax 35,497

3,027,972

Profit available for appropriations 7,561,452

Appropriations:

Transfer to Statutory Reserve (906,696)

Cash Dividend 2010 (1,464,329)

Issue of Bonus Shares 2010 (1,464,329)

(3,835,354)

Unappropriated profit carried forward 3,726,098

Basic / Diluted earnings per share - after tax Rs. 5.16

For the year ended December 31, 2011, the Directors propose a cash dividend of 25%, i.e., Rs. 2.50 pershare and bonus shares of 15%, i.e., 15 shares for every 100 shares held.

Performance Review

Alhamdolillah, the performance of your Bank continued to be satisfactory during the year. Deposits roseto Rs. 302,099 million against Rs. 249,774 million a year earlier, while advances decreased to Rs. 114,872million from Rs. 125,773 million because of subdued demand for credit in the private sector. Foreign TradeBusiness handled by the Bank during the year was Rs. 457,656 million. Profit before tax for the yearincreased to Rs. 7,155 million as compared to Rs. 5,656 million last year, while profit after tax increasedto Rs. 4,533 million against Rs. 3,602 million last year. It may be mentioned that the net profit for the year2011 was arrived at after making a general provision of Rs. 500 million, which is over and above what isrequired in terms of Prudential Regulations of State Bank of Pakistan. This is in line with the Bank's prudent

policies and serves to provide further strength to the Bank.

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During the year, the Bank opened 13 branches and 36 sub-branches, and also a Representative Office inIstanbul, Turkey, bringing our network to 353. Your Bank now has a network of 290 branches including 11Islamic Banking Branches and a Wholesale Branch in the Kingdom of Bahrain, 61 sub-branches, and twoRepresentative Offices, one each in Dubai and Istanbul. As before, the Bank will continue to expand itsnetwork in Pakistan and abroad.

In June 2011, the Bank successfully completed its fourth issue of rated, unsecured, and subordinated TermFinance Certificates (TFCs) amounting to Rs. 3,000 million, through private placement. This private placementwas managed and arranged by your Bank. These TFCs have further enhanced the Bank's capital adequacyand will also support future growth in our operations.

We are pleased to advise that your Bank was selected for the following awards in 2011:

Award of Recognition, 2010 from International Finance Corporation (IFC) as the Most Active GTFP(Global Trade Finance Program) Issuing Bank in Middle East & North Africa for South-South Trade.This is the second consecutive year that the Bank received an award from IFC in recognition ofparticipation in GTFP.

Bank of the Year - 2010 (Mid Size Banks) Award from CFA Association of Pakistan. The qualifyingbanks are awarded points on the basis of Profitability, Efficiency, Growth, and Solvency. Again, this isthe second time that the Bank has received this award, having received it earlier for the year 2009.

Top 25 Companies Award for the year 2010 by the Karachi Stock Exchange. Criteria for the award

include dividend payout, return on equity, compliance with listing regulations, and good corporategovernance. This, too, is the second consecutive year that the Bank has received this award.

During the year, four meetings of the Board were held and the attendance of each Director was as follows:

Total Number of Number of MeetingsName of Director Board Meetings Attended

Mr. Ali Raza D. Habib 4 4Mr. Abbas D. Habib 4 4Mr. Anwar Haji Karim 4 4Mr. Hasnain A. Habib 4 2Mr. Imtiaz Alam Hanfi 4 4Mr. Murtaza H. Habib 4 4

Mr. Qumail R. Habib 4 3Mr. Shameem Ahmed 4 4Mr. S. Mazhar Abbas 4 3Mr. Wazir Ali Khoja 4 3

Credit Rating

Alhamdollilah, Pakistan Credit Rating Agency Limited (PACRA) has maintained the Bank's long term andshort term entity ratings at AA+ (Double A plus) and A1+ (A One plus), respectively. The ratings of ourunsecured, subordinated TFCs have also been maintained at AA (Double A). These ratings denote a verylow expectation of credit risk emanating from a very strong capacity for timely payment of financialcommitments.


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Future Outlook

Overall economic prospects are challenging, given a weak global environment and, domestically, withwidening fiscal deficit and declining foreign exchange reserves. Underlying inflation is likely to persist, inview of the rise in petrol prices and weakening of the Rupee. However, GDP growth is expected to be higher,exports in the first half of fiscal year have been maintained at close to previous level, while home remittanceshave continued to rise. As always, we will Inshallah continue to strive for the growth and progress of theBank while following our usual prudent policies.

Audit Committee

The Audit Committee of the Bank comprises the following members:Mr. S. Mazhar Abbas ChairmanMr. Ali Raza D. HabibMr. Anwar Haji KarimMr. Shameem AhmedMr. Murtaza H. Habib

Auditors

The present auditors Messrs Ernst & Young Ford Rhodes Sidat Hyder, Chartered Accountants, retire andoffer themselves for reappointment. As suggested by the Audit Committee, the Board of Directors hasrecommended their reappointment as auditors of the Bank for the year ending December 31, 2012, at afee to be mutually agreed.

Risk Management Framework

The Bank always had a risk management framework commensurate with the size of the Bank and the natureof its business. This framework has developed over the years and continues to be refined and improved.Its salient features are summarized below:

Credit risk is managed through the credit policies approved by the Board; a well-defined credit approvalmechanism; use of internal risk ratings; prescribed documentation requirements; post-disbursementadministration, review, and monitoring of credit facilities; and continuous assessment of credit worthinessof counterparties. The Bank has also established a mechanism for independent, post-disbursementreview of large credit risk exposures. Decisions regarding the credit portfolio are taken mainly by theCentral Credit Committee. Credit Risk Management Committee of the Board provides overall guidance

in managing the Bank's credit risk.

Market risk is managed through the market risk policy approved by the Board; approval of counterpartylimits and dealer limits; specific senior management approval for each investment; and regular reviewand monitoring of the investment portfolio by the Bank's Asset Liability Management Committee (ALCO).In addition, the liquidity risk policy provides guidance in managing the liquidity position of the Bank,which is monitored on daily basis by the Treasury and the Middle Office. Risk Management Committeeof the Board provides overall guidance in managing the Bank's market and liquidity risks.

Operational risk is managed through the audit policy and the operational risk policy approved by theBoard, along with the policy on prevention of frauds and forgeries; operational manuals and proceduresissued from time to time; a system of internal controls and dual authorization for important transactionsand safe-keeping; a Business Continuity Plan, including a Disaster Recovery Plan for I. T.; and regular

audit of the branches. Audit Committee of the Board provides overall guidance in managing the Bank'soperational risk.


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In order to comply with SBP's guidelines on risk management, the Bank has established a separate RiskManagement Division, including a Middle Office that independently monitors and analyses the risks inherentin our Treasury operations. The steps taken by the Division include: sensitivity testing of GovernmentSecurities portfolio; computation of portfolio duration and modified duration; analysis of forward foreignexchange gap positions; more detailed reporting of TFCs and equities portfolios; development of improvedprocedures for trading in equities and settlements; monitoring of off-market foreign exchange rates andforeign exchange earnings; and establishment of a mechanism for independent, post-disbursement reviewof large credit risk exposures.

Corporate Social Responsibility (CSR)

Your Bank is fully committed to the concept of Corporate Social Responsibility and fulfills this responsibilityby engaging in a wide range of activities which include:

corporate philanthropy amounting to Rs. 24.7 million by way of donations during the year for social andeducational development and welfare of under-privileged people;

energy conservation, environmental protection, and occupational safety and health by restrictingunnecessary lighting, implementing tobacco control law and No Smoking Zone, and providing a safeand healthy work environment;

business ethics and anti-corruption measures, requiring all staff members to sign and comply with theBank's Statement of Ethics and Business Practices;

consumer protection measures, requiring disclosure of the schedule of charges and terms and conditions

that apply to the Bank's products and services;

amicable staff relations, recognition of merit and performance, and on-going opportunities for learningand growth of staff, both on-the-job and through formal training programmes;

employment through a transparent procedure, without discrimination on the basis of religion, caste,language, etc., including employment of special persons in the Bank;

expansion of the Bank's branch network to rural areas, which helps in rural development;

contribution to the national exchequer by the Bank by way of direct taxes of over Rs. 2.7 billion paid tothe Government of Pakistan during the year; furthermore, an additional amount of over Rs. 5.1 billionwas deducted/collected by the Bank on account of withholding taxes and federal excise duties and paid

to the Government of Pakistan.Statement on Corporate and Financial Reporting Framework

1. The financial statements, prepared by the Bank, present fairly its state of affairs, the result of its operations,cash flows and changes in equity.

2. Proper books of account have been maintained by the Bank.

3. Appropriate accounting policies have been consistently applied in preparation of the financial statements;changes, if any, have been adequately disclosed and accounting estimates are based on reasonableand prudent judgment.

4. International Accounting Standards, as applicable in Pakistan, have been followed in preparation offinancial statements and departure therefrom, if any, has been adequately disclosed.

5. The system of internal controls is sound in design and has been effectively implemented and monitored.

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6. There has been no material departure from the best practices of corporate governance, as detailedin the listing regulations.

7. There are no doubts upon the Bank's ability to continue as a going concern.

8. Key operating and financial data for last six years are summarized below:

(Rupees in million)

2011 2010 2009 2008 2007 2006

Total customer deposits 302,099 249,774 189,280 144,390 114,819 91,420

Total advances 114,872 125,773 105,985 100,197 79,224 70,796Profit before tax 7,155 5,656 4,512 3,579 3,052 2,689Profit after tax 4,533 3,602 2,856 2,425 2,211 1,761Shareholders Equity 17,837 14,706 12,287 9,967 8,014 6,186Earnings per share * (Rs) 5.16 4.10 3.25 2.76 2.52 2.00Cash Dividend (%) 25 20 20 12.50 15 15

Stock Dividend (%) 15 20 20 27.50 30 40

* Earnings per share from 2006 to 2010 have been recalculated based on the existing paid-up capital.

Value of investments of Provident Fund and Gratuity Fund Schemes based on latest audited financial

statements as at December 31, 2010 was as follows:(Rupees in'000)

Provident Fund 1,104,430Gratuity Fund 364,061

9. The pattern of shareholding and additional information regarding pattern of shareholding is given onpages 91 - 92.

10. No trade in the shares of the Bank was carried out by the Directors, CEO, CFO, Company Secretaryand their spouses and minor children.

General

We wish to thank our customers for their continued support and confidence, the State Bank of Pakistan fortheir guidance, and local and foreign correspondents for their cooperation. We also thank all our staffmembers for their sincere and dedicated services, which enabled the Bank to achieve these satisfactoryresults.

On behalf of the Board of Directors

ALI RAZA D. HABIBKarachi: February 21, 2012 Chairman


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Statement of Compliance with the Code of Corporate GovernanceFor the year ended December 31, 2011

This statement is being presented to comply with the Code of Corporate Governance contained in listingregulations of the Karachi, Lahore and Islamabad Stock Exchanges for the purpose of establishing aframework of good governance, whereby a listed company is managed in compliance with the best practicesof corporate governance.

The Bank has applied the principles contained in the Code in the following manner:

1. The Bank encourages representation of non-executive directors on its Board of Directors. At presentthe Board includes eight (8) non-executive directors.

2. The directors have confirmed that none of them is serving as a director in more than ten listedcompanies, including the Bank, except for the nominee director of National Investment Trust (NIT).

3. All the directors of the Bank are registered as taxpayers and none of them has defaulted in paymentof any loan to a banking company, a DFI or an NBFI or, being a member of a stock exchange, hasbeen declared as a defaulter by that stock exchange.

4. No casual vacancy occurred in the Board during the year.

5. The Bank's Statement of Ethics and Business Practices, has been signed by all the directors andemployees.

6. The Board has developed a vision / mission statement, overall corporate strategy and significantpolicies of the Bank. A complete record of particulars of significant policies along with the dates onwhich they were approved or amended has been maintained.

7. All the powers of the Board have been duly exercised and decisions on material transactions, includingappointment and determination of remuneration and terms and conditions of employment of the CEOand Executive Director, have been taken by the Board.

8. The meetings of the Board were presided over by the Chairman and, in his absence, by a directorelected by the Board for this purpose and the Board met at least once in every quarter. Written notices

of Board meetings, along with agenda and working papers, were circulated at least seven days beforethe meetings. The minutes of the meetings were appropriately recorded and circulated.

9. The directors of the Bank are well conversant with their duties and responsibilities.

10. The Board has approved appointment of Chief Financial Officer, Company Secretary and Head ofInternal Audit, including their remuneration and terms and conditions of employment.

11. The Directors' Report for this year has been prepared in compliance with the requirements of the Codeand fully describes the salient matters required to be disclosed.

12. The financial statements of the Bank were duly endorsed by CEO and CFO before approval of the

Board.


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13. The directors, CEO and executives do not hold any interest in the shares of the Bank other than thatdisclosed in the pattern of shareholding.

14. The Bank has complied with all the corporate and financial reporting requirements of the Code.

15. The Board has formed an Audit Committee comprising five (5) non-executive directors as membersincluding the Chairman of the Committee.

16. Meetings of the Audit Committee were held at least once in every quarter prior to approval of interimand final results of the Bank as required by the Code. The terms of reference of the committee were

revised in accordance with the requirement of the Code and advised to the committee for compliance.

17. The Bank has an effective internal audit division that is manned by experienced and qualified personnel.The audit team is conversant with the policies and procedures of the Bank and is involved in theinternal audit function on a full time basis.

18. The statutory auditors of the Bank have confirmed that they have been given a satisfactory ratingunder the quality control review programme of the Institute of Chartered Accountants of Pakistan, thatthey or any of the partners of the firm, their spouses and minor children do not hold shares of the Bankand that the firm and all its partners are in compliance with International Federation of Accountants(IFAC) guidelines on code of ethics as adopted by Institute of Chartered Accountants of Pakistan.

19. The statutory auditors or the persons associated with them have not been appointed to provide other

services except in accordance with the listing regulations and the auditors have confirmed that theyhave observed IFAC guidelines in this regard.

20. We confirm that all the other material principles contained in the code have been complied with.


ALI RAZA D. HABIB

Karachi: February 21, 2012 Chairman


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Review Report to the Members on Statement of Compliance with

the Best Practices of the Code of Corporate Governance

We have reviewed the Statement of Compliance (the statement) with the best practices contained in the

Code of Corporate Governance (the Code) for the year ended 31 December 2011 prepared by the Board

of Directors of Bank AL Habib Limited (the Bank) to comply with the Listing Regulations of the Karachi,

Lahore and Islamabad Stock Exchanges, where the Bank is listed.

The responsibility for compliance with the Code is that of the Board of Directors of the Bank. Our

responsibility is to review, to the extent where such compliance can be objectively verified, whether theStatement reflects the status of the Banks compliance with the provisions of the Code and report if it

does not. A review is limited primarily to inquiry of the Banks personnel and review of various documents

prepared by the Bank to comply with the Code.

As part of our audit of financial statements we are required to obtain an understanding of the accounting

and internal control systems sufficient to plan the audit and develop an effective audit approach. We

have not carried out any special review of the internal control systems to enable us to express an

opinion as to whether the Board's statement on internal control covers all controls and the effectiveness

of such internal controls.

Further, Sub-Regulation (xiii a) of Listing Regulation 35 notified by the Karachi Stock Exchange (Guarantee)

Limited vide circular number KSE/N-269 dated 19 January 2009 requires the Bank to place before theBoard of Directors for their consideration and approval related party transactions, distinguishing between

transactions carried out on terms equivalent to those that prevail in arms length transactions and

transactions which are not executed at arms length price, recording proper justification for using such

alternate pricing mechanism. Further, all such transactions are also required to be separately placed

before the Audit Committee. We are only required and have ensured compliance of requirement to the

extent of approval of related party transactions by the Board of Directors and placement of such

transactions before the Audit Committee. We have not carried out any procedure to determine whether

the related party transactions were undertaken at arms length price or not.

Based on our review, nothing has come to our attention which causes us to believe that the Statement

does not appropriately reflect the Bank's compliance, in all material respects, with the best practices

contained in the Code, as applicable to the Bank for the year ended 31 December 2011.

Ernst & Young Ford Rhodes Sidat HyderKarachi: February 21, 2012 Chartered Accountants

Audit Engagement Partner:Arslan Khalid


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Statement on Internal Controls

The Management of the Bank is responsible for establishing the Internal Control System with the mainobjectives of ensuring effectiveness and efficiency of operations; reliability of financial reporting; safeguardingof assets; and compliance with applicable laws and regulations. The Internal Control System has evolvedover the years, as it is an ongoing process and is included in the Bank's policies, procedures, financial limits,etc., as detailed in various manuals, circulars and instructions issued by the Bank. This system continuesto be reviewed, refined and improved from time to time and immediate corrective action is taken to minimizerisks which are inherent in banking business and operations.

The Internal Control System is reviewed by the Internal Auditors as well as External Auditors and theirfindings and recommendations are reported to the management and to the Audit Committee of the Board,and corrective action is taken to address control deficiencies and for improving procedures and systemsas they are identified. The Board, acting through the Audit Committee, provides supervision and overallguidance in improving the effectiveness of the Internal Control System.

While the Internal Control System is effectively implemented and monitored, there are inherent limitationsin the effectiveness of any system, including the possibility of human error or system failure and circumventionor overriding of controls. Accordingly, even an effective Internal Control System can only provide reasonablebut not absolute assurance that the system's objectives will be achieved.

During the year under review, we have endeavoured to follow the guidelines issued by State Bank of Pakistan

on internal controls and to incorporate these guidelines in the Bank's existing Internal Control System forevaluation and management of significant risks and we will endeavor to further improve our Internal ControlSystem during 2012.

M. SALEEM CHASHMAWALAHead of Internal Audit

A. SAEED SIDDIQUICompany Secretary

Board of Directors Remarks on the

Managements Evaluation of Internal Controls

Keeping in view the feedback received by the Board of Directors from the Audit Committee, and reportssubmitted as to the business policies and major risk related decisions taken by the management, the Boardof Directors endorse management's evaluation of Internal Controls.


ALI RAZA D. HABIB

Karachi: February 21, 2012 Chairman

Karachi: February 21, 2012

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Auditors' Report to the Members

We have audited the annexed statement of financial position of Bank AL Habib Limited (the Bank) as at31 December 2011, and the related profit and loss account, statement of comprehensive income, statementof changes in equity and cash flow statement together with the notes forming part thereof (here-in-after referredto as the 'financial statements') for the year then ended, in which are incorporated the unaudited certifiedreturns from the branches except for fifteen branches which have been audited by us and we state that wehave obtained all the information and explanations which, to the best of our knowledge and belief, werenecessary for the purposes of our audit.

It is the responsibility of the Bank's Board of Directors to establish and maintain a system of internal control,and prepare and present the financial statements in conformity with approved accounting standards and the

requirements of the Banking Companies Ordinance, 1962 (LVII of 1962) and the Companies Ordinance, 1984(XLVII of 1984). Our responsibility is to express an opinion on these statements based on our audit.

We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan.These standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free of any material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessingthe accounting policies and significant estimates made by management, as well as, evaluating the overallpresentation of the financial statements. We believe that our audit provides a reasonable basis for our opinionand after due verification, which in case of loans and advances covered more than sixty percent of the totalloans and advances of the Bank, we report that:

(a) in our opinion, proper books of accounts have been kept by the Bank as required by the CompaniesOrdinance, 1984 (XLVII of 1984), and the returns referred to above received from the branches havebeen found adequate for the purposes of our audit;

(b) in our opinion:i) the statement of financial position and profit and loss account together with the notes thereon

have been drawn up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962),and the Companies Ordinance, 1984 (XLVII of 1984), and are in agreement with the books ofaccount and are further in accordance with accounting policies consistently applied except forthe changes as stated in note 5.1 to the financial statements, with which we concur;

ii) the expenditure incurred during the year was for the purpose of the Bank's business; and

iii) the business conducted, investments made and the expenditure incurred during the year werein accordance with the objects of the Bank and the transactions of the Bank which have cometo our notice have been within the powers of the Bank;

(c) in our opinion, and to the best of our information and according to the explanations given to us thestatement of financial position, profit and loss account, statement of comprehensive income, statementof changes in equity and cash flow statement together with the notes forming part thereof conform withapproved accounting standards as applicable in Pakistan and give the information required by theBanking Companies Ordinance, 1962 (LVII of 1962) and the Companies Ordinance, 1984 (XLVII of1984), in the manner so required and give a true and fair view of the state of the Bank's affairs as at31 December 2011 and its true balance of the profit, comprehensive income, its cash flows and changesin equity for the year then ended; and

(d) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980),was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of thatOrdinance.

Ernst & Young Ford Rhodes Sidat HyderKarachi: February 21, 2012 Chartered Accountants

Audit Engagement Partner:Arslan Khalid


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Statement of Financial PositionAs at 31 December 2011

2011 2010Note (Rupees in '000)

ASSETS

Cash and balances with treasury banks 8 22,957,986 19,000,978Balances with other banks 9 6,743,337 2,132,403Lendings to financial institutions 10 000 1,139,268

Investments 11 222,958,574 137,167,680Advances 12 114,872,252 125,773,064Operating fixed assets 13 10,743,753 10,213,390Deferred tax assets 000 000Other assets 14 6,006,559 6,125,678

384,282,461 301,552,461LIABILITIES

Bills payable 15 4,979,720 2,989,989Borrowings 16 43,441,594 22,579,348Deposits and other accounts 17 302,098,594 249,774,212Sub-ordinated loans 18 7,390,358 4,842,260

Liabilities against assets subject to finance lease 000 000Deferred tax liabilities 19 1,231,486 642,675Other liabilities 20 5,287,157 4,657,866

364,428,909 285,486,350

NET ASSETS 19,853,552 16,066,111

REPRESENTED BY :

Share capital 21 8,785,972 7,321,643Reserves 5,324,689 4,392,264

Unappropriated profit 3,726,098 2,992,475

17,836,759 14,706,382Surplus on revaluation of assets - net of tax 22 2,016,793 1,359,729

19,853,552 16,066,111

CONTINGENCIES AND COMMITMENTS 23

The annexed notes 1 to 48 form an integral part of these financial statements.

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ANWAR HAJI KARIMDirector

ALI RAZA D. HABIBChairman

ABBAS D. HABIBChief Executive and

Managing Director

SYED MAZHAR ABBASDirector


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Profit and Loss AccountFor the year ended 31 December 2011

2011 2010Note (Rupees in '000)

Mark-up / return / interest earned 25 36,502,763 27,475,443Mark-up / return / interest expensed 26 (22,373,903) (16,678,554)

Net mark-up / return / interest income 14,128,860 10,796,889

Provision against non-performing loans and advances 12.6 (1,820,788) (946,296)

Provision for diminution in the value of investments 00 00Bad debts written-off directly 00 00

(1,820,788) (946,296)

Net mark-up / return / interest income after provisions 12,308,072 9,850,593

NON MARK-UP / INTEREST INCOME

Fees, commission and brokerage income 1,305,976 1,176,958Dividend income 233,398 236,399Income from dealing in foreign currencies 612,851 339,730(Loss) / gain on sale / redemption of securities - net 27 (1,263) 50,068Unrealized gain / (loss) on revaluation of investmentsclassified as held for trading 00 00

Other income 28 443,033 326,391Total non mark-up / interest income 2,593,995 2,129,546

14,902,067 11,980,139NON MARK-UP / INTEREST EXPENSES

Administrative expenses 29 (7,584,677) (6,162,449)Other provisions / write-offs 30 (15,797) (26,514)Other charges 31 (146,254) (134,965)

Total non mark-up / interest expenses (7,746,728) (6,323,928)

Extra-ordinary / unusual items 00 00

PROFIT BEFORE TAXATION 7,155,339 5,656,211

Taxation Current (2,453,493) (2,012,476) Prior years 00 00 Deferred (168,366) (41,574)

32 (2,621,859) (2,054,050)

PROFIT AFTER TAXATION 4,533,480 3,602,161

Restated

Basic and diluted earnings per share - Rupees 33 5.16 4.10


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ALI RAZA D. HABIB

Chairman


Managing Director



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Statement of Comprehensive IncomeFor the year ended 31 December 2011

2011 2010(Rupees in '000)

Net profit for the year 4,533,480 3,602,161

Other comprehensive income

Exchange difference on translation of netinvestment in a foreign branch 25,729 6,907

Total comprehensive income for the year 4,559,209 3,609,068


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Managing Director



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Statement of Changes in EquityFor the year ended 31 December 2011

R e v e n u e R e s e r v e s

S h a re S ta tu to ry S pe cia l G en e ra l F o re ig n U na p p ro - To ta lC ap ita l R es e rv e R es e rv e R es e rv e C urre n c y p ria te d

Tr an s la ti on P r of itR e s e r v e

(Rupees in 000)

B a la n c e a s a t 0 1 J a n u a r y 2 0 1 0 6 ,1 0 1 ,3 7 0 2 , 9 1 3 , 7 4 1 1 2 6 , 5 0 0 5 4 0 , 0 0 0 8 4 , 6 8 4 2 , 5 2 0 , 5 7 9 1 2 ,2 8 6 , 8 7 4

T o ta l c o m p r e h e n s iv e in c o m e f o r th e y e a r 0 0 0 0 0 0 0 0 6 , 9 0 7 3 , 6 0 2 , 1 6 1 3 ,6 0 9 , 0 6 8

T r a n s f e r f ro m s u r p l u s o n r e v a l u a t io no f f i x e d a s s e ts - n e t o f ta x 0 0 0 0 0 0 0 0 0 0 3 0 , 7 1 3 3 0 , 7 1 3

T r a n s fe r t o s t a t u t o r y r e s e r v e 0 0 7 2 0 , 4 3 2 0 0 0 0 0 0 ( 7 2 0 , 4 3 2 ) 0 0

C a s h d iv id e n d ( R s . 2 p e r s h a r e ) 0 0 0 0 0 0 0 0 0 0 ( 1 , 2 2 0 , 2 7 3 ) ( 1 , 2 2 0 , 2 7 3 )

I s s u e o f b o n u s s h a r e s i n t h e r a t io o f 2 0s h a r e s f o r e v e r y 1 0 0 s h a r e s h e ld 1 ,2 2 0 ,2 7 3 0 0 0 0 0 0 0 0 ( 1 , 2 2 0 , 2 7 3 ) 0 0

B a la n c e a s a t 3 1 D e c e m b e r 2 0 1 0 7 ,3 2 1 ,6 4 3 3 , 6 3 4 , 1 7 3 1 2 6 , 5 0 0 5 4 0 , 0 0 0 9 1 , 5 9 1 2 , 9 9 2 , 4 7 5 1 4 ,7 0 6 , 3 8 2

T o ta l c o m p r e h e n s iv e in c o m e f o r th e y e a r 0 0 0 0 0 0 0 0 2 5 , 7 2 9 4 , 5 3 3 , 4 8 0 4 ,5 5 9 , 2 0 9

T r a n s f e r f ro m s u r p l u s o n r e v a l u a t io no f f i x e d a s s e t s - n e t o f ta x 0 0 0 0 0 0 0 0 0 0 3 5 , 4 9 7 3 5 , 4 9 7

T r a n s fe r t o s t a t u t o r y r e s e r v e 0 0 9 0 6 , 6 9 6 0 0 0 0 0 0 ( 9 0 6 , 6 9 6 ) 0 0

C a s h d iv id e n d ( R s . 2 p e r s h a r e ) 0 0 0 0 0 0 0 0 0 0 ( 1 , 4 6 4 , 3 2 9 ) ( 1 , 4 6 4 , 3 2 9 )

I s s u e o f b o n u s s h a r e s i n t h e r a t io o f 2 0s h a r e s f o r e v e r y 1 0 0 s h a r e s h e ld 1 ,4 6 4 ,3 2 9 0 0 0 0 0 0 0 0 ( 1 , 4 6 4 , 3 2 9 ) 0 0

B a la n c e a s a t 3 1 D e c e m b e r 2 0 1 1 8 ,7 8 5 ,9 7 2 4 , 5 4 0 , 8 6 9 1 2 6 , 5 0 0 5 4 0 , 0 0 0 1 1 7 , 3 2 0 3 , 7 2 6 , 0 9 8 1 7 ,8 3 6 , 7 5 9

T h e a n n e x e d n o t e s 1 t o 4 8 f o r m a n i n t e g r a l p a r t o f th e s e f in a n c i a l s t a te m e n t s .




Managing Director



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16

Cash Flow StatementFor the year ended 31 December 2011

2011 2010(Rupees in '000)

Cash Flow From Operating Activities

Profit before taxation 7,155,339 5,656,211Dividend income (233,398) (236,399)

6,921,941 5,419,812

Adjustments for non - cash items:Depreciation 762,990 653,575Amortization 37,983 40,223Provision against non-performing loans and advances 1,820,788 946,296Gain on sale of operating fixed assets (84,392) (41,409)Loss / (gain) on sale / redemption of securities 1,263 (50,068)Provision for compensated absences 23,242 39,000Loss on closure of subsidiary 000 34,878Provision / (reversal of provision) against

off-balance sheet items 15,797 (8,364)

2,577,671 1,614,131

9,499,612 7,033,943

Increase in operating assetsLendings to financial institutions 1,139,268 (1,139,268)Advances 9,080,024 (20,734,041)Other assets 110,869 (1,896,223)

10,330,161 (23,769,532)

Increase in operating liabilitiesBills payable 1,989,731 (197,394)Borrowings 22,030,466 (12,080,253)Deposits 52,324,382 60,494,150Other liabilities (excluding provision for taxation) 831,657 461,191

77,176,236 48,677,694

97,006,009 31,942,105

Income tax paid (2,712,051) (1,923,162)

Net cash flow from operating activities 94,293,958 30,018,943(Balance carried forward)


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Note 2011 2010(Rupees in '000)

Net cash flow from operating activities(Balance brought forward) 94,293,958 30,018,943

Cash Flow From Investing Activities

Net investments in available for sale securities (69,985,171) 45,842,793Net investments in held to maturity securities (14,860,567) (72,799,606)Net investment in associates (51,656) 151,783Proceeds from closure of subsidiary 000 27,972Dividend received 232,039 234,645Investments in operating fixed assets (1,132,753) (1,346,051)Sale proceeds of operating fixed assets 107,407 51,836

Net cash used in investing activities (85,690,701) (27,836,628)

Cash Flow From Financing Activities

Receipts of sub-ordinated loans 3,000,000 000

Payments of sub-ordinated loans (451,902) (2,740)Dividend paid (1,440,922) (1,199,908)

Net cash from / (used in) financing activities 1,107,176 (1,202,648)

Exchange adjustment on translation of net investmentin a foreign branch 25,729 6,907

Increase in cash and cash equivalents 9,736,162 986,574

Cash and cash equivalents at beginning of the year 19,916,758 18,930,184

Cash and cash equivalents at end of the year 34 29,652,920 19,916,758





Managing Director



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Notes to the Financial StatementsFor the year ended 31 December 2011

1. STATUS AND NATURE OF BUSINESS

Bank AL Habib Limited (the Bank) was incorporated in Pakistan on 15 October 1991 as a publiclimited company under the Companies Ordinance, 1984 having its registered office at 126-C, OldBahawalpur Road, Multan with principal place of business in Karachi. Its shares are listed on all theStock Exchanges in Pakistan. It is a scheduled bank principally engaged in the business of commercialbanking with a network of 290 branches (2010: 277 branches), 61 sub-branches (2010: 25) and 02

representative offices (2010: 01).The branch network of the Bank includes a wholesale branch inthe Kingdom of Bahrain (2010:01), a branch in Karachi Export Processing Zone (2010:01) and 11Islamic Banking branches (2010: 08).

2. BASIS OF PRESENTATION

2.1 These financial statements have been prepared in conformity with the format of financial statementsprescribed by the State Bank of Pakistan (SBP) vide BSD Circular No. 04, dated 17 February 2006.

2.2 In accordance with the directives of the Federal Government regarding the shifting of the bankingsystem to Islamic modes, SBP has issued various circulars from time to time. Permissible forms oftrade-related modes of financing includes purchase of goods by banks from their customers andimmediate resale to them at appropriate mark-up in price on deferred payment basis. The purchase

and resale arising under these arrangements are not reflected in these financial statements as such,but are restricted to the amount of facility actually utilized and the appropriate portion of mark-upthereon. However, murabaha financing arrangements undertaken by the Islamic Banking branchesare accounted for as a purchase and sale transaction of the underlying goods in these financialstatements in accordance with the accounting policies of the Bank.

2.3 The financial results of the Islamic Banking branches have been consolidated in these financialstatements for reporting purposes, after eliminating material inter-branch transactions / balances.Key financial information of the Islamic Banking branches is disclosed in note 45.

2.4 These are separate financial statements of the Bank in which investments in subsidiary and associatesare reported on the basis of direct equity interest and are not consolidated or accounted for by usingequity method of accounting.

3. STATEMENT OF COMPLIANCE

3.1 These financial statements have been prepared in accordance with approved accounting standardsas applicable in Pakistan. Approved accounting standards comprise International Financial ReportingStandards (IFRS) issued by the International Accounting Standards Board (IASB) and IslamicFinancial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan(ICAP) as are notified under the Companies Ordinance, 1984, the requirements of the CompaniesOrdinance, 1984, the Banking Companies Ordinance, 1962 and regulations / directives issued bythe Securities and Exchange Commission of Pakistan (SECP) and SBP. Wherever the requirementsof the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or regulations /directives issued by SECP and SBP differ with the requirements of IFRS or IFAS, the requirementsof the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the requirementsof the said regulations / directives shall prevail.

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3.2 SBP vide BSD Circular No. 10, dated 26 August 2002 has deferred the applicability of InternationalAccounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and IAS 40,"Investment Property" for banking companies till further instructions. Further, according to thenotification of SECP dated 28 April 2008, IFRS - 7 "Financial Instruments: Disclosures" has not beenmade applicable for banks. Accordingly, the requirements of these standards have not been consideredin the preparation of these financial statements.

4. BASIS OF MEASUREMENT

These financial statements have been prepared under the historical cost convention except forcertain investments, land and buildings and derivative financial instruments which are revalued as

referred in notes 5.4, 5.6 and 5.14 below.

5. SIGNIFICANT ACCOUNTING POLICIES

5.1 The accounting policies adopted in the preparation of these financial statements are consistent withthose of the previous financial year except as described below:

New and amended standards and interpretations

The Bank has adopted the following new and amended IFRS and IFRIC interpretations whichbecame effective during the year:

IAS 24 - Related Party Disclosures (Revised)IAS 32 - Financial Instruments: Presentation Classification of Rights Issues (Amendment)IFRIC 14 - Prepayments of a Minimum Funding Requirement (Amendment)IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments

In May 2010, International Accounting Standards Board (IASB) issued amendments to variousstandards primarily with a view to removing inconsistencies and clarifying wording. These improvementsare listed below:

IFRS 3 Business Combinations- Transition requirements for contingent consideration from a business combination that

occurred before the effective date of the revised IFRS- Measurement of non-controlling interests

- Un-replaced and voluntarily replaced share-based payment awards

IAS 1 Presentation of Financial Statements- Clarification of statement of changes in equity

IAS 27 Consolidated and Separate Financial Statements- Transition requirements for amendments made as a result of IAS 27 Consolidated and

Separate Financial Statements

IAS 34 Interim Financial Reporting- Significant events and transactions

IFRIC 13 Customer Loyalty Programmes- Fair value of award credits

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The adoption of the above standards, amendments, interpretations and improvements did not haveany material effect on these financial statements.

5.2 Cash and cash equivalents

Cash and cash equivalents as referred to in the cash flow statement comprises cash and balanceswith treasury banks and balances with other banks less overdrawn nostros accounts.

5.3 Repurchase / resale agreements

The Bank enters into transactions of repos and reverse repos at contracted rates for a specified

period of time. These are recorded as under:

Sale under repurchase obligation

Securities sold with a simultaneous commitment to repurchase at a specified future date (repos)continue to be recognized in the statement of financial position and are measured in accordancewith accounting policies for investments. Amounts received under these agreements are recordedas repurchase agreement borrowings. The difference between sale and repurchase price is amortizedas expense over the term of the repo agreement.

Purchase under resale obligation

Securities purchased with a corresponding commitment to resell at a specified future date (reverse

repos) are not recognized in the statement of financial position. Amounts paid under these arrangementsare included in reverse repurchase agreement lendings. The difference between purchase andresale price is accrued as income over the term of the reverse repos agreement.

5.4 Investments

Investments in subsidiary and associates are stated at cost less provision for impairment, if any.Other investments are classified as follows:

Held for trading

These are investments acquired principally for the purpose of generating profits from short-termfluctuations in price or dealers margin or are securities included in a portfolio in which a pattern ofshort-term trading exists.

Held to maturity

These are investments with fixed or determinable payments and fixed maturities which the Bankhas the intention and ability to hold till maturity.

Available for sale

These are investments which do not fall under the held for trading and held to maturity categories.

All purchases and sales of investments that require delivery within the time frame established byregulations or market convention are recognized at the trade date. Trade date is the date on whichthe Bank commits to purchase or sell the investments.

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Investments (other than held for trading) are initially measured at fair value plus transaction costassociated with the investment. Investments classified as held for trading are initially measured atfair value, and transaction costs are expensed in the profit and loss account.

After initial recognition, quoted securities, other than those classified as held to maturity, are carriedat market value. Unquoted securities are valued at cost less impairment in value, if any. Held tomaturity securities are carried at amortized cost.

Surplus / (deficit) arising on revaluation of quoted securities which are classified as available forsale investments is taken to a separate account which is shown in the statement of financial positionbelow equity. The surplus / (deficit) arising on these securities is taken to the profit and loss accountwhen actually realised upon disposal or in case of impairment of securities. The unrealized surplus/ (deficit) arising on revaluation of quoted securities which are classified as held for trading is takento the profit and loss account.

Provision for diminution in the values of securities is made after considering impairment, if any, intheir value and charged to profit and loss account. Impairment is recognized when there is anobjective evidence of significant and prolong decline in the value of such securities. Provision forimpairment against debt securities is made as per the aging criteria prescribed by the PrudentialRegulations of SBP and in case of unquoted equity securities on the basis of book value of investee'snet assets.

Premium or discount on debt securities classified as available for sale and held to maturity is

amortized using effective interest method and taken to the profit and loss account.

5.5 Advances

Loans and advances

These are stated net of provisions for non-performing advances. Provision for non-performingadvances is determined in accordance with the requirements of the Prudential Regulations and ischarged to the profit and loss account. The Bank also maintains general provision in addition to therequirements of the Prudential Regulations on the basis of the management's risk assessment.Advances are written off when there are no realistic prospects of recovery.

Finance lease receivables

Leases where the Bank transfers substantially all the risks and rewards incidental to ownership ofan asset to the lessee are classified as finance leases. A receivable is recognized at an amountequal to the present value of the lease payments including any guaranteed residual value.

Ijarah finance

In accordance with the requirements of IFAS 2 'Ijarah', assets leased out under ijarah arrangementson or after 01 January 2009 are stated at cost less depreciation and impairment, if any and includedunder "advances". Such assets are depreciated over the terms of Ijarah contracts. Ijarah arrangementsexecuted before the above referred date are accounted for as finance lease.


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Murabaha

Funds disbursed under murabaha arrangements for purchase of goods are recorded as advancefor murabaha. On culmination of murabaha i.e., sale of goods to customers, murabaha receivablesare recorded at the sale price net of deferred income. Goods purchased but remaining unsold andadvances against purchase of goods at the reporting date are recorded as inventories and otherassets respectively.

5.6 Operating fixed assets

Tangible operating assets - owned

Land is measured at cost at the time of initial recognition and is subsequently carried at revaluedamount. Buildings are initially measured at cost and upon revaluation, are carried at revalued amountless accumulated depreciation and impairment, if any. All other operating fixed assets are statedat cost less accumulated depreciation and impairment, if any. Depreciation is charged to profit andloss account on straight line basis so as to charge the assets over their expected useful lives at therates specified in note 13.2. The depreciation charge is calculated after taking into account residualvalue, if any. The residual values, useful lives and depreciation method are reviewed annually andadjusted, if appropriate. Depreciation is charged on prorata basis, i.e., full month charge in the monthof purchase and no charge in the month of disposal.

Land and buildings are revalued by independent professionally qualified valuers with sufficient

regularity to ensure that the net carrying amount does not differ materially from the fair value. Thesurplus arising on revaluation of fixed assets is credited to the surplus on revaluation of assets"account shown below equity. The Bank has adopted the following accounting treatment of depreciationon revalued assets, keeping in view the requirements of the Companies Ordinance, 1984 andSECP's SRO 45(1)/2003 dated 13 January 2003:

- depreciation on assets which are revalued is determined with reference to the value assignedto such assets on revaluation and depreciation charge for the year is taken to the profit andloss account; and

- an amount equal to incremental depreciation for the year net of deferred taxation is transferredfrom surplus on revaluation of assets to unappropriated profit through statement of changes

in equity to record realization of surplus to the extent of the incremental depreciation chargefor the year.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset,as appropriate, only when it is probable that future economic benefits associated with the item willflow to the Bank and the cost of the item can be measured reliably. The carrying amount of thereplaced part is derecognized. All other repairs and maintenance are charged to the income statementduring the financial period in which they are incurred.

Gains and losses on disposal of fixed assets are included in income currently.

Tangible operating assets - leased

Leases where the Bank assumes substantially all the risks and rewards of ownership are classifiedas finance leases. Assets subject to finance lease are accounted for by recording the assets and


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related liability. These are stated at lower of fair value and the present value of minimum leasepayments at the inception of lease less accumulated depreciation. Financial charges are allocatedover the period of lease term so as to provide a constant periodic rate of financial charge on theoutstanding liability. Depreciation is charged on the basis similar to the owned assets.

Intangible assets

Intangible assets having a finite useful life are stated at cost less accumulated amortization andimpairment, if any. Amortization is based on straight line method by taking into consideration theestimated useful life of assets at the rates specified in note 13.3. Intangible assets are amortizedon prorata basis i.e., full month amortization in the month of purchase and no amortization in the

month of disposal.

Capital work in progress

Capital work in progress is stated at cost less impairment, if any.

Impairment

The carrying values of fixed assets are reviewed for impairment when events or changes incircumstances indicate that the carrying values may not be recoverable. If any such indication existsand where the carrying values exceed the estimated recoverable amounts, the fixed assets arewritten down to their recoverable amounts.

The resulting impairment loss is taken to profit and loss account except for impairment loss onrevalued assets which is adjusted against the related revaluation surplus to the extent that theimpairment loss does not exceed the surplus on revaluation of assets.

5.7 Employees' benefits

Defined benefit plan

The Bank operates an approved gratuity fund for all its confirmed employees, which is administeredby the Trustees. The Bank's costs and contributions are determined based on actuarial valuationcarried out at each year end using Projected Unit Credit Actuarial Method. Net cumulative unrecognizedactuarial gains / losses relating to previous reporting periods in excess of higher of 10% of present

value of defined benefit obligation or 10% of the fair value of plan assets are recognized as incomeor expense over the estimated remaining working lives of the employees.

Defined contribution plan

The Bank operates an approved provident fund scheme for all its regular permanent employees,administered by the Trustees. Equal monthly contributions are made both by the Bank and itsemployees to the fund at the rate of 10% of the basic salary in accordance with the terms of thescheme.

Compensated absences

The Bank accounts for all accumulating compensated absences when employees render service

that increases their entitlement to future compensated absences. The liability is determined basedon actuarial valuation carried out using the Projected Unit Credit Method.


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5.8 Provisions against liabilities

These are recognized when the Bank has a legal or constructive obligation as a result of past events,it is probable that an outflow of resources will be required to settle the obligation and a reliableestimate of the amount can be made. Provisions are reviewed at each reporting date and areadjusted to reflect the current best estimate.

5.9 Provisions against off-balance sheet obligations

The Bank, in the ordinary course of business, issues letters of credit, acceptances, guarantees, bidbonds, performance bonds etc. The commission against such contracts is recognized in the profitand loss account under "fees, commission and brokerage income" over the period of contracts. TheBank's liability under such contracts is measured at the higher of the amount representing unearnedcommission income at the reporting date and the best estimate of the amount expected to settleany financial obligation arising under such contracts.

5.10 Revenue recognition

Mark-up / interest / return on advances and investments is recognized on accrual basis, except incase of advances classified under the Prudential Regulations on which mark-up is recognized onreceipt basis. Markup / interest / return on rescheduled / restructured loans and advances andinvestments is recognized as permitted by the regulations of SBP.

Financing method is used in accounting for income from lease financing. Under this method, theunrealized lease income is deferred and taken to income over the term of the lease period so asto produce a constant periodic rate of return on the outstanding net investment in lease. Gain / losson termination of lease contracts, front end fee and other lease income are recognized as incomeon receipt basis.

The rentals from ijarah are recognized as income over the term of the contract net of depreciationexpense relating to the ijarah assets.

Income from murabaha is accounted for on a time proportionate basis over the period of murabahatransaction.

Dividend income is recognized when the right to receive is established.

Gain or loss on sale of investments are recognized in profit and loss account in the year in whichthey arise.

Fee, commission and brokerage income are recognized as services are performed.

5.11 Taxation

Income tax expense comprises current and deferred tax. Income tax expense is recognized in profitand loss account except to the extent that it relates to the items recognized directly in equity orsurplus on revaluation of assets, in which case it is recognized in equity or surplus on revaluationof assets.


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Current

Provision for current tax is based on the taxable income for the year, using tax rates enacted or

substantively enacted at the statement of financial position date and any adjustments to the tax

payable in respect of previous years. Current tax assets and liabilities are measured at the amount

expected to be recovered from or paid to taxation authorities.

Deferred

Deferred income tax is provided on all temporary differences at the statement of financial position

date between the tax bases of assets and liabilities and their carrying amounts for financial reportingpurposes.

Deferred income tax assets are recognized for all deductible temporary differences and unused tax

losses, to the extent that it is probable that taxable profits will be available against which the deductible

temporary differences and unused tax losses can be utilized.

Deferred tax liabilities are recognized for all taxable temporary differences, except in respect of

taxable temporary differences associated with investment in foreign operations, when the timing of

the reversal of the temporary differences can be controlled and it is probable that the temporary

differences will not reverse in the foreseeable future.

The carrying amount of deferred income tax assets are reviewed at each statement of financialposition date and reduced to the extent that it is no longer probable that sufficient taxable profit or

taxable temporary differences will be available to allow all or part of the deferred income tax asset

to be utilized.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply

to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws)

that have been enacted or substantively enacted at the statement of financial position date.

5.12 Currency translation

Functional and presentation currency

These financial statements are presented in Pak Rupees which is the Bank's functional currency

and presentation currency.

Transactions and balances in foreign currencies

Foreign currency transactions are translated into Pak Rupees at the exchange rates prevailing on

the date of transaction. Monetary assets and liabilities in foreign currencies are translated into Pak

Rupees at the exchange rates prevailing at the reporting date. Non-monetary items that are measured

in terms of historical cost in a foreign currency are translated using the exchange rates at the dates

of the initial transactions. Non-monetary items measured at fair value in a foreign currency are

translated using exchange rates at the date when the fair value was determined. Exchange gains

or losses are included in income currently.


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Foreign operations

The assets and liabilities of foreign operations are translated to Pak Rupees at exchange ratesprevailing at the reporting date. The income and expense of foreign operations are translated at rateof exchange prevailing during the year. Exchange gain or loss on such translation is taken to equitythrough statement of other comprehensive income under "foreign currency translation reserve".

Commitments

Commitments for outstanding forward foreign exchange contracts are translated at forward ratesapplicable to their respective maturities.

5.13 Financial instruments

Financial assets and financial liabilities are recognized at the time when the Bank becomes a partyto the contractual provision of the instrument. Financial assets are de-recognized when the contractualright to future cash flows from the asset expires or is transferred along with the risk and reward ofownership of the asset. Financial liabilities are de-recognized when obligation is discharged, cancelledor expired. Any gain or loss on de-recognition of the financial asset and liability is recognized in theprofit and loss account of the current period.

5.14 Derivative financial instruments

Derivative financial instruments are initially recognized at their fair value on the date on which thederivative contract is entered into and are subsequently remeasured at fair value. All derivativefinancial instruments are carried as assets when fair value is positive and liabilities when fair valueis negative. Any change in the value of derivative financial instruments is taken to the profit and lossaccount.

5.15 Off-setting

Financial assets and financial liabilities are only off-set and the net amount is reported in the financialstatements when there is a legally enforceable right to set-off the recognized amount and the Bankintends either to settle on a net basis, or to realize the assets and to settle the liabilities simultaneously.Income and expense items of such assets and liabilities are also off-set and the net amount is

reported in the financial statements.

5.16 Dividends and appropriations to reserves

Dividends and appropriations to reserves are recognized in the year in which these are approved,except appropriations required by the law which are recorded in the period to which they pertain.

5.17 Segment reporting

A segment is a distinguishable component of the Bank that is engaged in providing products andservices (business segment), or in providing products or services within a particular economicenvironment (geographical segment), which is subject to risk and rewards that are different from


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those of other segments. The segment reporting format has been determined and prepared inconformity with the format of financial statements and guidelines, prescribed by SBP vide BSDCircular No. 04, dated, 17 February 2006. The Bank's primary format of reporting is based onbusiness segments.

Business segments

Retail banking

It consists of retail lending, deposits and banking services to private individuals and small businesses.The retail banking activities include provision of banking and other financial services, such as currentand savings accounts, credit cards, consumer banking products etc., to individual customers, small

merchants and SMEs.

Commercial banking

Commercial banking represents provision of banking services including treasury and internationaltrade related activities to large corporate customers, multinational companies, government and semigovernment departments and institutions and SMEs treated as corporate under the PrudentialRegulations.

Geographical segments

The Bank operates in two geographic regions, being:

- Pakistan

- Middle East

5.18 Earnings per share

The Bank presents basic and diluted earnings per share (EPS) for its shareholders. Basic EPS iscalculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by theweighted average number of ordinary shares outstanding during the period / year. Diluted EPS isdetermined by adjusting the profit or loss attributable to ordinary shareholders and the weightedaverage number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares,if any. There were no convertible dilutive potential ordinary shares in issue at 31 December 2011.

5.19 Clients assets

The Bank provides services that result in the holding of assets on behalf of its clients. Such assets

are not reported in the financial statements, as they are not the assets of the Bank.

6. ACCOUNTING JUDGMENTS AND ESTIMATES

The preparation of financial statements requires management to make judgments, estimates andassumptions that affect the application of policies and reported amounts of assets and liabilities,income and expenses. The estimates and associated assumptions are based on historical experienceand various other factors that are believed to be reasonable under the circumstances, the resultof which forms the basis of making judgment about carrying values of assets and liabilities that arenot readily apparent from other sources. Actual results may differ from these estimates. The estimatesand underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimatesare recognized in the period in which the estimate is revised if the revision affects only that period,or in period of revision and future periods if the revision affects both current and future periods. The

estimates and judgments that have a significant effect on the financial statements are in respectof the following:


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Note

Classification of investments and provision for diminution in the value of investments 5.4 & 11

Provision against non-performing advances 5.5 & 12

Useful lives of assets and methods of depreciation 5.6 & 13

Defined benefit plan 5.7 & 36

Provisions against off-balance sheet obligations 5.9 & 30

Current and deferred taxation 5.11 & 19

7. STANDARDS, INTERPRETATIONS AND AMENDMENTS TO APPROVED ACCOUNTING

STANDARDS THAT ARE NOT YET EFFECTIVE

The following revised standards, amendments and interpretations with respect to the approved

accounting standards as applicable in Pakistan would be effective from the dates mentioned below

against the respective standard, interpretation or amendment:

Effective date

(accounting periods beginning

Standard, interpretation or amendment on or after)

IAS 1 - Presentation of Financial Statements Presentation of 01 July 2012

items of comprehensive income

IAS 12 Income Taxes (Amendment) - Recovery of Underlying Assets 01 January 2012

IAS 19 Employee Benefits (Amendment) 01 January 2013

The Bank expects that the adoption of the above revisions and amendments of the standards will

not materially affect the Bank's financial statements in the period of initial application other than the

amendments to IAS-19 Employee Benefits'. Such amendments range from fundamental changes

to simple clarifications and re-wording. The siginificant changes include the following:

- For defined benefit plans, the ability to defer recognition of actuarial gains and losses (i.e., the

corridor approach) has been removed. As revised, actuarial gains and losses are recognized in

other comprehensive income when they occur. Amounts recorded in profit and loss are limited

to current and past service costs, gains or losses on settlements, and net interest income

(expense). All other changes in the net defined benefit asset (liability) are recognized in other

comprehensive income with no subsequent recycling to profit and loss.

- Objectives for disclosures of defined benefit plans are explicitly stated in the revised standard,

along with new or revised disclosure requirements. These new disclosures include quantitative

information of the sensitivity of the defined benefit obligation to a reasonably possible change

in each significant actuarial assumption.

The Bank is currently assessing the impact of the above amendments which are effective from 01

January 2013 on the financial statements . However, it is expected that the adoption of the said

amendments will result in change in the Bank's accounting policy related to recognition of actuarial

gains and losses as referred to in note 5.7 to the financial statements.

In addition to the above, the following new standards have been issued by IASB which are yet to

be notified by SECP for the purpose of applicability in Pakistan.


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8.1 Represent statutory cash reserve maintained under Section 36 of the State Bank of Pakistan Act,1956.

8.2 Represents statutory cash reserve maintained by the Islamic Banking branches in accordance withBPD Circular No. 01 of 2003.

8.3 Represent cash reserves maintained against foreign currency deposits mobilized under Circular FE-25 of 1998 to comply with statutory requirements.

8.4 Represents US Dollar collection account maintained with the SBP in accordance with Circular FE-02 of 2004.

Note 2011 2010

(Rupees in '000)8. CASH AND BALANCES WITH TREASURY BANKS

In hand

Local currency 4,013,528 3,049,020

Foreign currencies 591,887 624,203

National prize bonds 14,962 16,952

4,620,377 3,690,175

In transit

Local currency 10,000 00Foreign currency 00 77,073

10,000 77,073With State Bank of Pakistan in:

Local currency current accounts 8.1 10,689,526 8,459,338

Local currency current account-Islamic Banking 8.2 198,378 222,006

Foreign currency deposit accounts

Cash reserve account 8.3 1,466,115 1,370,187

Cash reserve account-Islamic Banking 3,778 2,826

Special cash reserve account 8.3 4,398,345 4,110,562

Local US Dollar collection account 8.4 34,107 19,993

16,790,249 14,184,912

With National Bank of Pakistan in:Local currency current accounts 1,537,360 1,048,818

22,957,986 19,000,978

IASB Effective date

(annual periods beginning

on or after)

IFRS 10 Consolidated Financial Statements 01 January 2013

IFRS 11 Joint Arrangements 01 January 2013

IFRS 12 Disclosure of Interests in Other Entities 01 January 2013

IFRS 13 Fair Value Measurement 01 January 2013


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9. BALANCES WITH OTHER BANKS

In PakistanCurrent accounts 733,852 596,782Deposit accounts 9.1 350,000 00Savings accounts 9.2 467,393 159,936

1,551,245 756,718

Outside Pakistan

Current accounts 846,210 544,673Deposit accounts 9.3 4,345,882 831,012

5,192,092 1,375,685

6,743,337 2,132,403

9.1 These carry expected profit rates ranging from 10% to 11% (2010: NIL) per annum.

9.2 These carry expected profit rates ranging from 6.99% to 8.25% (2010: 6.99% to 8%) per annum.

9.3 These carry interest rates upto 0.04% (2010: upto 0.13%) per annum.

10. LENDINGS TO FINANCIAL INSTITUTIONS

In local currencyRepurchase agreement lendings (Reverse Repo) 00 1,139,268

10.1 Securities held as collateral against lendings to financial institutions

2011 2010

Further FurtherH eld by g iven as Total H eld by given as Total

B an k c olla tera l Bank colla te ra l(Rupees in 000)

Market Treasury Bills 00 00 00 297,158 00 297,158Pakistan Investment Bonds 00 00 00 842,110 00 842,110

00 00 00 1,139,268 00 1,139,268


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11. INVESTMENTS

2 0 1 1 2 0 1 0N o t e

H e ld b y G iv e n a s To ta l H e ld b y G iv e n a s To ta l1 1 .1 In v e s tm e n ts b y ty p e B a n k c o lla te r a l B a n k c o lla te ra l

( R u p e e s i n 0 0 0 )A v a i l a b l e f o r s a l e s e c u r i t i e s 1 1 .5

M a r k e t T r e a s u r y B i l ls 7 8 ,7 15 ,6 4 1 2 7 ,5 8 8,8 5 5 1 0 6,3 04 ,4 9 6 3 3 ,4 7 2 ,2 5 0 1 ,2 8 4 ,4 3 7 3 4 ,7 5 6 ,6 8 7P a k i s ta n I n v e s t m e n t B o n d s 1 4 ,6 1 7 ,4 8 3 0 0 1 4 , 6 1 7 , 4 8 3 1 2 ,0 2 7 ,7 8 1 0 0 1 2 , 0 2 7 , 7 8 1F o r e i g n C u r r e n c y B o n d s 9 7 9 ,4 7 4 0 0 9 7 9 , 4 7 4 7 9 2 ,2 4 7 0 0 7 9 2 , 2 4 7S u k u k s 6 ,9 4 7 ,7 4 0 0 0 6 , 9 4 7 , 7 4 0 6 ,0 4 4 ,9 7 9 0 0 6 , 0 4 4 , 9 7 9

O r d i n a r y s h a r e s o f l i s te dc o m p a n i e s 7 0 ,9 1 8 0 0 7 0 , 9 1 8 2 0 ,2 2 8 0 0 2 0 , 2 2 8

O r d i n a r y s h a r e s o fu n l is t e d c o m p a n i e s 3 9 ,5 7 0 0 0 3 9 , 5 7 0 3 9 ,5 7 0 0 0 3 9 , 5 7 0

L i s t e d t e r m f i n a n c e c e r t i f ic a t e s 5 8 4 ,4 6 1 0 0 5 8 4 , 4 6 1 6 5 0 ,4 4 1 0 0 6 5 0 , 4 4 1U n l is t e d t e r m f i n a n c e c e r t i f ic a t e s 2 4 9 ,9 2 0 0 0 2 4 9 , 9 2 0 5 ,8 0 1 ,5 6 5 0 0 5 , 8 0 1 , 5 6 5O p e n e n d e d m u t u a l fu n d s 1 ,4 5 0 ,0 0 0 0 0 1 , 4 5 0 , 0 0 0 1 ,1 2 5 ,0 0 0 0 0 1 , 1 2 5 , 0 0 0

1 03 ,6 5 5,2 0 7 2 7 ,5 8 8,8 5 5 1 3 1,2 44 ,0 6 2 5 9 ,9 7 4 ,0 6 1 1 ,2 8 4 ,4 3 7 6 1 ,2 5 8 ,4 9 8

H e l d t o m a t u r i ty s e c u r i ti e s 1 1 .2M a r k e t T r e a s u r y B i l ls 7 6 ,0 7 9 ,5 2 0 0 0 7 6 , 0 7 9 , 5 2 0 7 0 ,6 6 2 ,3 3 0 0 0 7 0 , 6 6 2 , 3 3 0P a k i s ta n I n v e s t m e n t B o n d s 1 3 ,4 8 2 ,7 2 2 0 0 1 3 , 4 8 2 , 7 2 2 3 ,8 9 7 ,3 8 5 0 0 3 , 8 9 7 , 3 8 5

S u k u k s 2 6 6 ,9 0 0 0 0 2 6 6 , 9 0 0 2 7 5 ,0 0 0 0 0 2 7 5 , 0 0 0

L i s t e d t e r m f i n a n c e c e r t i f ic a t e s 3 4 3 ,6 8 1 0 0 3 4 3 , 6 8 1 3 9 4 ,2 0 8 0 0 3 9 4 , 2 0 8U n l is t e d t e r m f i n a n c e c e r t i f ic a t e s 1 2 5 ,0 0 0 0 0 1 2 5 , 0 0 0 2 0 8 ,3 3 3 0 0 2 0 8 , 3 3 3

9 0 ,2 9 7 ,8 2 3 0 0 9 0 , 2 9 7 , 8 2 3 7 5 ,4 3 7 ,2 5 6 0 0 7 5 , 4 3 7 , 2 5 6

A s s o c i a t e s 1 1 .1 2H a b i b S u g a r M i l l s L i m i t e d 1 8 0 ,9 7 7 0 0 1 8 0 , 9 7 7 1 8 0 ,9 7 7 0 0 1 8 0 , 9 7 7H a b i b A s s e t M a n a g e m e n t L im i te d 3 3 ,7 5 0 0 0 3 3 , 7 5 0 3 3 ,7 5 0 0 0 3 3 , 7 5 0F i r st H a b i b I n c o m e F u n d 5 5 0 ,0 0 0 0 0 5 5 0 , 0 0 0 6 0 0 ,0 0 0 0 0 6 0 0 , 0 0 0F i r st H a b i b S t o c k F u n d 5 0 ,0 0 0 0 0 5 0 , 0 0 0 5 0 ,0 0 0 0 0 5 0 , 0 0 0F i r st H a b i b C a s h F u n d 1 0 0 ,0 0 0 0 0 1 0 0 , 0 0 0 0 0 0 0 0 0

9 1 4 ,7 2 7 0 0 9 1 4 , 7 2 7 8 6 4 ,7 2 7 0 0 8 6 4 , 7 2 7

S u b s i d i a r y 1 1 . 1 3

A L H a b i b C a p i t a l M a r k e t s ( P v t . ) L t d . 2 0 0 ,0 0 0 0 0 2 0 0 , 0 0 0 2 0 0 ,0 0 0 0 0 2 0 0 , 0 0 0

In v es tm e n ts a t c o s t 1 95 ,0 67 ,7 57 2 7,5 88 ,8 55 2 22 ,6 56 ,6 12 1 3 6 ,4 7 6 ,0 4 4 1 ,2 8 4 ,4 3 7 1 3 7 ,7 6 0 ,4 8 1P r o v i s i o n f o r d i m i n u t i o n i n t h e

v a l u e o f i n v e s t m e n t s 1 1 . 4 (5 ,7 0 0 ) 0 0 (5 ,7 0 0 ) (5 ,7 0 0 ) 0 0 ( 5 , 7 0 0 )

In v e s t m e n t s ( n e t o f p r o v i si o n s ) 1 9 5 ,0 6 2 ,0 5 7 2 7 , 58 8 ,8 5 5 2 2 2 ,6 5 0 ,9 1 2 1 3 6 ,4 7 0 ,3 4 4 1 ,2 8 4 ,4 3 7 1 3 7 ,7 5 4 ,7 8 1

S u r p l u s / ( d e f i c it ) o nr e v a l u a t i o n o f a v a i l a b l e f o r

s a le in v e s tm en ts - n e t 2 2 .2 1 6 1 ,8 0 3 1 4 5 ,8 5 9 3 0 7 ,6 6 2 (5 8 5 ,9 1 3 ) (1 ,1 8 8 ) (5 8 7 ,1 0 1 )In v e s tm e n ts a f te r re v a lu a t io n o f

a v a il ab le f o r s a le i n v e s tm e n t s 1 9 5 ,2 2 3 ,8 6 0 2 7 ,7 3 4 ,7 1 4 2 2 2 ,9 5 8 ,5 7 4 1 3 5 ,8 8 4 ,4 3 1 1 ,2 8 3 ,2 4 9 1 3 7 ,1 6 7 ,6 8 0

1 1 .2 T h e a g g r e g a t e m a r k e t v a l u e o f h e l d to m a t u r it y s e c u r it ie s a s a t 3 1 D e c e m b e r 2 0 11 a m o u n t e d t o R s . 9 1 , 0 8 4 ( 2 0 1 0 : R s . 7 5 , 2 0 7 ) m i l li o n .

31


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Note 2011 2010

(Rupees in '000)

11.3 Investments by segment

Federal Government Securities

Market Treasury Bills 11.6 182,384,016 105,419,017

Pakistan Investment Bonds 11.7 28,100,205 15,925,166

Foreign Currency Bonds 11.10 620,558 451,538

Sukuks 11.8 4,000,000 3,100,000

215,104,779 124,895,721

Fully paid-up ordinary shares

Listed companies 11.5.5 70,918 20,228

Unlisted companies 11.11 39,570 39,570

110,488 59,798

Term finance certificates, sukuks and bonds

Term Finance Certificates

Listed term finance certificates 928,142 1,044,649

Unlisted term finance certificates 374,920 6,009,898

11.9 1,303,062 7,054,547

Sukuks 11.8 3,214,640 3,219,979

Foreign Currency Bonds 11.10 358,916 340,709

4,876,618 10,615,235

Others

Open ended mutual funds 11.5.9 1,450,000 1,125,000

Associates 11.12 914,727 864,727

Subsidiary 11.13 200,000 200,000

2,564,727 2,189,727

Investments at cost 222,656,612 137,760,481

Provision for diminution in the

value of investments 11.4 (5,700) (5,700)

Investments - net of provisions 222,650,912 137,754,781

Surplus / (deficit) on revaluation ofavailable for sale investments -net 22.2 307,662 (587,101)

Investments after revaluation of

available for sale investments 222,958,574 137,167,680

32


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11.4 Particulars of provision for diminution in thevalue of investments

Available for sale investments:

Opening balance 5,700 83,254Adjustment of provision upon disposal of investment 00 (77,554)

Closing balance 11.4.1 5,700 5,700

11.4.1 Particulars of provision in respect of type and segment

Available for sale investments:

Unlisted companies 5,700 5,700

11.5 Quality of available for sale securities

Name of security F a c e 2 0 11 2 0 1 0 2 0 11 2 0 1 0 2 0 11 2 0 1 0v a lu e R a t in g * C o s t C a r r y in g v a lu e

R s . / U S D ( R u p e e s i n ' 0 0 0 )

11 .5 .1 M a rk e t T re a s u ry B ills U n ra ted U n r a t e d 1 0 6 , 3 0 4 , 4 9 6 3 4 , 7 5 6 , 6 8 7 1 0 6 , 6 6 8 , 5 5 2 3 4 , 7 0 2 , 0 8 4

11 .5 .2 P a k is ta n In v e s tm e n t B o n d s U n ra ted U n r a t e d 1 4 , 6 1 7 , 4 8 3 1 2 , 0 2 7 , 7 8 1 1 4 , 6 5 3 , 8 0 8 1 1 ,4 0 4 ,5 3 5

11 .5 .3 F ore ig n C u rre nc y B on ds

G o v e r n m e n t o f P a k i s ta n B o n d s U S D 1 0 0 B - B - 4 5 5 , 0 6 8 2 9 7 , 2 0 3 3 8 5 , 8 6 7 3 1 0 , 0 0 5

G o v e rn m e n t o f P a k is ta n B o n d s U S D 1 0 0 B - B - 1 6 5 , 4 9 0 1 5 4 , 3 3 5 1 3 7 , 1 6 7 1 5 6 , 8 0 9

G o v e rn m e n t o f S r i L a n k a B o n d s U S D 1 0 0 B + B + 3 5 8 , 9 1 6 3 4 0 , 7 0 9 3 6 6 , 5 2 9 3 7 0 , 2 0 7

9 7 9 , 4 7 4 7 9 2 , 2 4 7 8 8 9 , 5 6 3 8 3 7 , 0 2 1

1 1 . 5 . 4 S u k u k s

2 0 1 1 2 01 0 N a m e o f S e c u r i t y

N o . o f c e r t if ic a t e s

D a r A l A r k a n I n t e r n a t io n a l S u k u k2 0 , 0 0 0 2 0 ,0 0 0 C o m p a n y U S D 1 0 0 A A 1 7 9 , 8 9 1 1 7 1 , 2 7 3 1 5 8 , 3 0 4 1 4 6 , 4 3 9

1 7 0 , 0 0 0 1 7 0 ,0 0 0 E n g r o F o o d s L im i t e d R s .5 ,0 0 0 A A 8 5 0 , 0 0 0 8 5 0 , 0 0 0 8 5 0 , 0 0 0 8 5 0 , 0 0 0

0 0 1 ,0 00 G o v e r n m e n t o f P a k is t a n Ija r a h S u k u k R s .1 00 ,0 00 U n r a t e d 0 0 1 0 0 , 0 0 0 0 0 1 0 1 , 6 2 0

3 0 , 0 0 0 3 0 ,0 0 0 G o v e rn m e n t o f P a kis ta n I ja ra h S u ku k- I I I R s .1 0 0 ,0 0 0 U n r a t e d U n r a t e d 3 , 0 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 3 , 0 1 4 , 1 0 0 3 , 0 5 8 , 2 0 0

1 0 , 0 0 0 0 0 G o v e r n m e n t o f P ak is ta n I ja ra h S u k u k -V I I I R s . 10 0 ,0 0 0 U n r a t e d 1 , 0 0 0 , 0 0 0 0 0 1 , 0 0 2 , 8 0 0 0 0

1 , 0 8 7 , 8 4 9 1 , 0 1 3 ,7 0 6 L ib e r t y P o w e r T e c h L im i t e d R s . 1 , 0 0 0 A A A A 1 , 0 8 7 , 8 4 9 1 , 0 1 3 , 7 0 6 1 , 0 8 7 , 8 4 9 1 , 0 1 3 , 7 0 6

4 0 , 0 0 0 4 0 ,0 0 0 S u i S o u th e r n G as C om p a n y L im it e d R s. 5 , 0 0 0 A A A A 8 0 , 0 0 0 1 6 0 , 0 0 0 8 0 , 0 0 0 1 6 0 , 0 0 0

1 5 0 , 0 0 0 1 50 ,0 00 W A P D A S e c on d S u k uk C o m p an y L im i t e d R s . 5 ,0 00 U n r a t e d U n r a t e d 7 5 0 , 0 0 0 7 5 0 , 0 0 0 7 5 0 , 0 0 0 7 5 0 , 0 0 0

6 , 9 4 7 , 7 4 0 6 , 0 4 4 , 9 7 9 6 , 9 4 3 , 0 5 3 6 , 0 7 9 , 9 6 5


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11 .5 .8 U n lis te d te rm f in a nc e c er tif ic a te s

2 0 1 1 2 0 1 0 N am e o f s e c u r ity

N o . o f c e r t i f ic a te s

1 5 0 0 0 A s k a r i B a n k L im ite d IV R s .1 ,0 0 0 ,0 0 0 A A 1 5 0 , 0 0 0 0 0 1 5 0 , 0 0 0 0 0

2 0 , 0 0 0 2 0 ,0 0 0 B a n k A l F a la h L im ite d IV R s .5 ,0 0 0 A A A A 9 9 , 9 2 0 9 9 , 9 6 0 9 9 , 9 2 0 9 9 , 9 6 0

0 0 5 5 2,8 0 0 P o w e r H o ld in g P r iv ate L im i te d R s .5 ,0 0 0 U n r a t e d 0 0 2 , 7 6 4 , 0 0 0 0 0 2 , 7 6 4 , 0 0 0

s e e n o te ( 1 1 .5 .1 0 )

0 0 5 8 7 ,5 2 1 P ow er H old in g P riv a te L im ite d II R s. 5 ,0 0 0 U n r a t e d 0 0 2 , 9 3 7 , 6 0 5 0 0 2 , 9 3 7 , 6 0 5

s e e n o te ( 1 1 .5 .1 0 )

2 4 9 , 9 2 0 5 , 8 0 1 , 5 6 5 2 4 9 , 9 2 0 5 , 8 0 1 , 5 6 5

11 .5 .6 O r din a ry sh a re s of un lis te d co m p a nie s

2 0 1 1 2 0 1 0 N am e o f s e c u r ity

N o . o f s h a r e s / c e r t i f ic a te s

3 , 0 0 0 , 0 0 0 3 ,0 0 0 ,0 0 0 K h u s h h a li B a n k L im ite d R s .1 0 A A 3 0 , 0 0 0 3 0 , 0 0 0 3 0 , 0 0 0 3 0 , 0 0 0

P a k i s t a n E x p o r t F i n a n c e G u a r a n t e e

5 6 9 , 9 5 8 5 6 9 ,9 5 8 A g e n c y L im ite d R s .1 0 U n ra ted U n r a t e d 5 , 7 0 0 5 , 7 0 0 0 0 0

2 4 2 4 S .W .I.F.T U n ra ted U n r a t e d 3 , 8 7 0 3 , 8 7 0 3 , 8 7 0 3 , 8 7 0

3 9 , 5 7 0 3 9 , 5 7 0 3 3 , 8 7 0 3 3 , 8 7 0

11 .5 .5 O r din a ry sh a re s o f l is te d co m p a n ie s

2 0 1 1 2 0 1 0 N am e o f s e c u r ity F a c e 2 0 11 2 0 1 0 2 0 11 2 0 1 0 2 0 11 2 0 1 0

N o . o f s h a r e s / c e r t i f ic a te s v a lu e R a t in g * C o s t C a r r y in g v a lu e

R s . ( R u p e e s i n ' 0 0 0 )

1 , 2 0 1 , 9 5 2 8 8 8 , 9 80 H a b i b M e t r o p o li ta n B a n k L i m i te d R s . 1 0 A A + A A + 2 2 , 1 3 9 1 9 , 8 7 1 2 0 , 3 0 1 2 5 , 7 7 2

5 2 , 8 6 2 5 2 ,8 6 2 In te rn a tio n a l In d u s tr ie s L im ite d R s.1 0 U n ra ted U n r a t e d 3 5 7 3 5 7 2 , 0 0 9 3 , 1 6 4

3 , 3 6 4 , 0 5 6 0 0 In te r n a t i o n a l S te e l L im i t e d R s .1 0 U n ra ted 4 7 , 3 3 2 0 0 3 9 , 0 5 7 0 0

2 , 5 0 0 0 0 P a k is ta n P e tro le u m L im ite d R s .1 0 U n ra ted 4 2 2 0 0 4 2 1 0 0

8 , 0 0 0 0 0 P a c k a g e s L im ite d R s .1 0 A A 6 6 8 0 0 6 6 2 0 0

7 0 , 9 1 8 2 0 , 2 2 8 6 2 , 4 5 0 2 8 , 9 3 6

11 .5 .7 L is te d te rm f in a nc e ce rtif ic at es

2 0 1 1 2 0 1 0 N am e o f s e c u r ity

N o . o f c e r t i fi c a te s6 , 0 0 0 6 ,0 0 0 A llie d B a n k L im ite d R s .5 ,0 0 0 A A A A 2 9 , 9 4 0 2 9 , 9 5 2 3 0 , 2 7 3 2 9 , 9 0 2

3 3 , 8 0 0 3 3 ,8 0 0 A l li ed B a n k L im i te d - I I R s .5 ,0 0 0 A A A A 1 6 8 , 8 6 5 1 6 8 , 9 3 2 1 6 6 , 9 6 5 1 4 8 , 9 0 2

5 , 0 0 0 5 , 0 0 0 A s k a r i B a n k L i m i t e d - I I R s . 5 , 0 0 0 A A A A 2 4 , 9 4 0 2 4 , 9 5 0 2 5 , 0 1 5 2 4 , 9 5 0

4 0 , 0 0 0 4 0 ,0 0 0 E ng ro F e r tiliz e rs L im ite d - III R s.5 ,0 0 0 A A A A 1 9 9 , 6 8 0 1 9 9 , 7 6 0 1 9 5 , 5 9 3 1 8 5 , 7 7 7

5 , 0 0 0 5 , 0 0 0 J a h a n g i r S i d d i q u i & C o m p a n y L t d - I V R s . 5 , 0 0 0 A A A A 1 2 , 4 7 8 2 4 , 9 6 0 1 3 , 0 2 7 2 4 , 9 6 0

6 , 6 0 0 6 , 6 0 0 N I B B a n k L i m i t e d R s . 5 , 0 0 0 A + A + 3 2 , 9 5 4 3 2 , 9 6 7 3 2 , 2 9 7 3 2 , 4 7 2

2 0 , 0 0 0 2 0 , 0 0 0 O r i x L e a s i n g P a k i s t a n L i m i t e d - I I I R s . 5 , 0 0 0 A A + A A + 1 6 , 6 5 4 4 9

un consolidated annual report 2011

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