united bank limited · 2.9% in 2016. the anks net loans and advances grew by 12% over dec15 to...
TRANSCRIPT
United Bank LimitedUNCONSOLIDATED FINANCIAL STATEMENTS
AS AT DECEMBER 31, 2016
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
1
On behalf of the Board of Directors, I am pleased to present the 58th Annual Report of United
Bank Limited for the year ended December 31, 2016.
Financial Highlights
UBL posted a profit after tax (PAT) of Rs.
27.73 billion for the year ended December
31, 2016. The consolidated PAT was
recorded at Rs. 28.00 billion, an increase of
4% over the prior year (2015: Rs. 27.01
billion). The Earnings per share stood at Rs.
22.65 per share for the year ended 2016 in
comparison to Rs. 21.02 per share in 2015.
Profit before tax (PBT) stood at Rs. 46.02 billion, a growth of 9% over the last year. The overall
Return on Equity (RoE) measured at 25% (2015: 25.7%). This consistent performance has been
achieved through strong balance sheet growth driven by gaining market share through core
deposits along with prudent build up in high yielding assets. The break-up value per share has
increased to Rs. 124.0 as at Dec 31’16 (Dec’ 15: Rs. 116.1 per share)
Overall revenues have grown by 4% over 2015, closing at Rs. 80.65 billion. Net Markup Income
has increased by 2% and non-markup income by 7% year on year. The cost base continues to be
efficiently managed, with the overall expense growth curtailed at 3% over 2015 and the cost to
income ratio maintained in line with the previous year’s level at 39.6% despite lower margins,
expansion across the branch network and reinvestment in our core business segments.
Maintaining the focus on underwriting standards along with aggressive recoveries resulted in a
net reduction in NPLs from Rs. 46.83 billion in 2015 to Rs. 44.57 billion in 2016. The asset
quality level continues to improve and stood at 8.1% as at Dec’16 (2015: 9.4%). This has
resulted in a more than 50% reduction in the provisioning expense for the year.
The Board is pleased to recommend a final cash dividend of Rs. 4 per share i.e. 40% for the year
ended December 31, 2016, bringing the total cash dividend for the year 2016 to 130%.
42.17
25.73
46.02
27.73
PBT PAT2015 2016
Standalone Results - Rs. in billion
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
2
Net Markup Income
The prevailing low interest rate
environment along with the
savings floor continued to
constrict banking margins. These
challenges notwithstanding, UBL
has expanded its Net Markup
Income by 2%, closing 2016 at Rs.
57.04 billion. Net interest margin
was recorded at 4.7% in 2016
(2015: 5.6%).
UBL’s balance sheet growth has resulted from a robust buildup in deposits as average domestic
current account volumes saw an increase of 18% year on year in 2016. The Bank’s overall cost
of deposits decreased by 42 bps to 2.7% in 2016 (2015: 3.1%). Growth in the loan portfolio
across all major business segments despite modest credit demand along with further
investment in high yielding bonds portfolio maintained interest earnings.
Non-Markup Income
UBL’s non-markup income grew by 7% over
2015 to close at Rs. 23.61 billion and continues
to strengthen the overall revenue profile of the
bank. Earnings are built on a diverse range of
services, from fee based facilities across Retail
Bank and UBL’s flagship branchless banking
service, Omni. Trade and investment banking
services across Corporate as well as leading
positions within Treasury and Capital markets
continue to grow and diversify revenue
potential. The overall contribution of Non Mark
up Income to gross revenues improved to 29.3%
in 2016 (2015: 28.3%).
Fee, commission and brokerage income constituted 52% of total non-markup income and was
recorded at Rs. 12.32 billion (2015: Rs. 12.20 billion). The ATM / Debit Cards business witnessed
significant growth during the year with over half a million new cards issued and consistent
55.84 57.04
5.6% 4.7%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-
10.00
20.00
30.00
40.00
50.00
60.00
2015 2016
Net Interest Income Net Interest Margin
Rs. in billions
21.99 23.61
2015 2016Non Interest Income
Rs. in billions
7%
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
3
growth in customer transaction volumes resulting in a 21% growth in commissions. Trade
commissions grew by 14% over 2015, in spite of commodity price pressures and weak trade
performance of the economy impacting business. UBL Omni remains one of the largest
contributors to the fee base as we expanded our Omni network to over 42,000 agents in order
to better serve an ever growing customer base. This has resulted in increased revenues from
payment services and disbursements under G2P programs. General economic slowdown in the
Gulf Cooperation Council (GCC) region and rebate cutback by the State Bank of Pakistan
restricted home remittance earnings. However, despite these challenges, we managed to
increase our overall volumes from last year and continue to retain our leadership position with
a market share of over 25%. Corporate mandates for equity and debt advisory as well as
trusteeship services led to a 19% growth in investment banking fees. 2016 proved to be a
particularly successful year for International Investment Banking that saw an increase in
revenues of around 70% over the previous year.
Dividend income reached Rs. 3.27 billion, slightly ahead the previous year’s level of Rs. 3.20
billion. With focus on maximizing dividend yield, our strategy remains to maintain a well-
balanced equities portfolio with investments in a diverse range of sectors and scrips with strong
fundamentals. Capital gains increased to Rs. 5.36 billion from Rs. 3.24 billion in 2015, primarily
on timely realization on bonds and equities. Foreign exchange earnings closed at Rs. 1.70
billion, a reduction of 25% from Rs. 2.27 billion earned in 2015 as reduced foreign exchange
flows and a relatively stable currency market weighed heavy across the industry.
Provisions and loan losses
The net provisioning expense
decreased by 53% from Rs. 3.71
billion in 2015 to Rs. 1.74 billion in
the current year. Asset quality was
measured at 8.1%, an improvement
of 133 bps from last year. This
improvement can be attributed to
credit quality considerations driving
loan book expansion along with
enhanced focus on recoveries against the bank’s non-performing corporate portfolio led by our
Special Assets Management Unit. We remain well-reserved against loan losses as the coverage
ratio improved from 80.1% at Dec’15 to 83.9% as at Dec’16.
3.71
1.74
2015 2016
Total Provisions
Rs. in billions
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
4
Cost management
UBL’s administrative expenses increased by 3% over 2015 to close at Rs. 31.90 billion (2015: Rs.
30.90 billion). Staff cost increase was well contained at 6% over 2015, with headcount
maintained at optimum levels. The increase in personnel cost can be attributed to market
linked salary increases and performance increments. Premises costs were up by a mere 2% over
the previous year, essentially a result of rent increases on lease renewals across a major part of
the network. Electricity and gas costs were well-contained through the introduction of cost
saving initiatives to ensure efficient usage while centralization of the procurement process
restricted overall expenses. Variable costs decreased by 5% compared to the previous year as
we continued to actively monitor and rationalize controllable expenses. The Bank’s cost to
income ratio was recorded at 39.6% (2015: 39.7%). Maximizing operational efficiencies remains
our key priority as we continue to evolve leaner operating models. As we build synergies across
front office and operations we remain fully committed to continuous improvement in service
standards.
Balance Sheet Management
UBL’s balance sheet size reached Rs. 1.58
trillion as at Dec’16, an increase of 13%
over Dec’15. The Bank’s overall deposits
grew by 12% over Dec’15 to reach Rs. 1.18
trillion (2015: Rs. 1.05 trillion). Average
domestic deposits grew by 14% over
Dec’15 with market share recorded at
8.66% in 2016 (2015: 8.55%). Our deposit
mobilization strategy centers around active
acquisition of new to bank relationships
with aggressive focus on current accounts. This is depicted by a year on year growth of 16% in
core deposits and 18% in average current deposits during the year. The expansion in the Banks’
core deposits provides a sustainable funding base for business growth in addition to keeping
costs down in the current low interest rate scenario. Domestic CASA stood strong at 84% (2015:
84%), with the overall cost of deposits witnessing a 56 bps reduction from 3.4% last year to
2.9% in 2016.
The Bank’s net loans and advances grew by 12% over Dec’15 to close at Rs. 510.1 billion
(Dec’15: Rs. 455.4 billion). The lending strategy is focused on selectively growing the loan book,
while maximizing yields on overall relationships. The corporate advances portfolio grew by 10%
931 1,059
120 121
2015 2016
Core Deposits Non-Core Deposits
Rs. in billions
12.2%
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
5
over Dec’15, with 15% growth in the SME segment. Despite limited credit opportunities in the
GCC, the International loan book grew by 16% to Rs. 168.2 billion; driven by Corporate and
Financial Institutions based lending.
The Bank’s investment portfolio grew to Rs. 806.5 billion by the end of Dec’16, an increase of
12% over Dec’15. The portfolio is mainly concentrated in treasury securities with Rs. 570.6
billion (2015: Rs. 486.9 billion) invested in Pakistan Investment Bonds, generating strong yields
of 9.7% in 2016. The Bank’s equity book closed at Rs. 16.0 billion (2015: Rs. 19.3 billion),
consisting of long-term investments with stable dividend yields. Despite capital gains of Rs 5.36
billion taken in 2016, the overall revaluation surplus on Available for Sale Investments stood at
Rs. 23.3 billion as at Dec 31, 2016 (Dec 2015: Rs. 25.6 billion).
Strong Capital Ratios
UBL’s capital ratios remained optimal as the unconsolidated Tier-1 CAR stood at 10.9% with the
overall capital adequacy improving to 15.1% in Dec’16 compared to 10.4% and 14.6% in Dec’15
respectively. Our capital position remains comfortable in view of regulatory minimum and
future Basel III requirements along with supporting future credit growth.
Best Bank 2016
The major achievement of United Bank Limited (UBL) in 2016 was that it was crowned the “Best Bank 2016” in the first ever Pakistan Banking Awards held by the Institute of Bankers Pakistan. The award was a testament to UBL’s position as a leading financial institution in Pakistan, its contribution to national development and overall effective management of resources and stakeholder expectations.
Economy Review
The economic turnaround which began its course after the 2013 elections has gathered further
momentum during the last year. Initiation of energy and infrastructure projects, structural
reforms, successful closure of the IMF program, sustained low oil prices, controlled inflation,
privatization drive, issuance of global bonds and the resultant rise in foreign exchange (FX)
reserves have all contributed to this positive momentum. This economic progress has been well
appreciated by key international donors and rating agencies. Visible progress on the China
Pakistan Economic Corridor (CPEC) over the last 12 months indicates that the country is now on
the path to long term and sustainable economic growth.
The energy sector remained a key priority for the government and notable progress has been
made in the right direction. However, in addition to the massive plan for increase in power
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
6
generation, the government this is also the need to enhance focus on improving transmission
and distribution systems. The persistent low international oil prices have also helped contain
circular debt accumulation. The low interest rate regime along with improvement in the energy
supply have also rejuvenated the overall economic engine with the country achieving 4.7% real
GDP growth in FY’16, the strongest in the last 8 years.
On the external account front, there has been a strong build up in FX reserves which have
surpassed a record level of USD 23 billion from as low as USD 8 billion in January 2014. This has
also led to a very strong to stable exchange rate regime during the past two years whilst
improving overall import coverage. In view of the improved economic outlook, Pakistan has
issued various global bonds, including Eurobonds and Sukuks, all met by strong interest from
international capital markets.
Despite overall improvement in the FX reserves, the country’s trade deficit deteriorated during
H1 FY’17 to a level of USD 14.5 billion, up 22.2% on a YoY basis. During H1 FY’17, exports
declined by 3.8% year on year to USD 9.9 billion while imports increased by 10.1% year on year
to USD 24.4 billion. Due to relatively higher trade gap on goods and services along with
slowdown in workers’ remittances, the current account deficit for H1 FY’17 widened
significantly to USD 3.6 billion as compared to USD 1.9 billion during the same period last year.
After years of strong performance, remittances went down during H1 FY’17 to close at USD 9.5
billion against USD 9.7 billion vs in HY’16. Despite weaker current account performance, the
financial account supported the country’s reserves position with a net inflow of USD 3.7 billion
during H1 FY’17. The country’s overall FX reserves crossed a record USD 24 billion for the first
time in the country’s history and closed the year 2016 slightly lower at USD 23.2 billion, a
growth of 11.3% over the level of USD 20.8 billion a year ago. Due to a relatively stable balance
of payments position during the year, PKR-USD exchange rate remained largely stable and
closed 2016 at PKR 104.60, with marginal appreciation over PKR 104.74 at Dec’15.
For the fifth year in a row, the average CPI inflation remained in single digits and at a lower
level of 3.8% during 2016 as a result of significantly lower commodity prices, though it picked
up some pace in comparison to the 2015 average CPI level of 2.6%. Although the inflation level
remains comfortable, the gradual rise in the CPI reading has brought the cautious view back on
interest rates. Hence SBP decided to keep its policy rate largely unchanged during the year with
the last change being a marginal rate cut of 25bps in May 2016.
The Pakistan Stock Exchange (PSX) continued its upward trajectory and has been approaching
record levels of 50k points. During 2016, the KSE-100 index ended the year at around 48k
points, posting a significant year on year growth of 46%, making it the best performing market
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
7
in Asia during 2016. Strong performance of Pakistan equities in 2016 was mainly led by strong
liquidity in the local system owing to low interest rates and rising investor confidence.
Economic recovery has positively affected local demand for oil stocks while an improving
security situation and exuberance on Pakistan’s reclassification in MSCI Emerging Markets Index
have also driven the overall bullish sentiment.
Deposits for the banking sector grew by 15.8% during the year with major impetus coming
towards the latter part of the year. Despite overall lower interest rates, loan momentum
remained subdued during most part of the year; however, gross advances gained some
strength during the latter part of the period with a growth of 13.6% in 2016. Non-performing
loans for the industry remained relatively stable at Rs. 631 billion at September 16 while the
gross infection ratio reduced to 11.3% from 11.4% in Dec’15.
International
The low oil price environment since mid-2015 compelled the GCC countries to resort to
stringent austerity measures. Lower subsidies, sizeable reduction in government spending and
rising external financing was seen across the gulf countries. As a result, IMF projected the
region’s GDP to grow by 1.7% in 2016 as against 4% growth posted last year. UAE, and to a
certain extent Qatar, are being supported by relatively diversified economies with continued
investment in infrastructure projects cushioning the fall in oil prices. Going forward, subdued
government spending will continue to constrain GCC economies, albeit to a lesser degree as oil
prices may pick up in light of OPEC’s recent decision to curtail production.
UBL International branches continued to positively contribute towards the Banks’ profitability
in 2016. The strategy of deepening its existing customer base and expanding on a carefully
carved out target market has enabled the Bank to record promising growth in all asset classes.
As a result, the total assets under UBL International closed at a record high of USD 2,973
million. Structured on the wholesale banking model, GCC branches’ risk remained diversified in
core corporate lending, fixed income investments and the financial institutions segments.
Despite a challenging liquidity situation prevailing in the GCC markets, the Bank was able to
record 7% growth in its overall deposit base in 2016.
Conscious of the developing economic situation in Gulf countries, the Bank has enhanced its
scale of due diligence and strengthened the risk surveillance of its existing portfolio. The Bank
has been able to de-risk a significant part of its Yemen exposures and continues to operate with
the risk reduction strategy going forward, all the while closely monitoring the developing
situation on ground.
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
8
The international branches remained compliant with the applicable regulatory capital, liquidity
and provisioning requirements wherever required and continue to carry adequate provision to
weather any potential adverse situation on its network.
The Bank continued to play a lead role in processing home remittances to Pakistan and retained
its position as the market leader in 2016 as well. As part of UBL’s commitment to provide its
customers fast, secure and reliable banking services, the Bank launched the first ever Instant
Remittance Kiosk in its Bahrain branches. The Bank plans to roll out these Kiosks in other
international locations subject to securing the requisite regulatory approvals.
UBL International branches continued to capitalize on the unique offerings from its Non-
Resident Pakistani (NRP) initiative to provide banking access in Pakistan to the overseas
Pakistanis living in GCC countries. Since this initiative’s launch, the International branches have
contributed over Rs. 1.0 billion as NRP deposits in Pakistan.
In 2016, the Bank completed the international upgrade of its core banking system in the USA
and all the GCC branches. We have consistently been investing in technology within the
international business to ensure that the information systems remain compliant with the
applicable security, regulatory and compliance standards.
With the objective of maximizing synergies from increasing cross-border business, coordination
channels between UBL UK, UBL Switzerland, UBL Tanzania and International branches have
been further strengthened. The international branches continue to operate with a coherent
‘one-bank’ strategy with the rest of group independent entities.
Subsidiaries & Associates
Our subsidiaries and associates continued to post significant contribution to the UBL Group’s
consolidated results.
United National Bank Limited (UBL UK) is a 55% owned subsidiary of UBL. UBL UK recorded a
PBT of GBP 7.1 million in 2016, 1% lower compared to the previous year. This is attributable to
one off recoveries against non-performing loans booked last year. Spreads remain compressed
due to the low interest rate outlook in the UK. Resultantly Net Interest Income (NII) reported a
7% reduction year on year. Non-Funded Income (NFI) depicted a growth of 5% over last year.
UBL UK’s deposits grew by 13% during the year with greater focus on retail deposits, while
funds were primarily deployed in investments, with a marginal 3% decline in advances.
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
9
UBL Switzerland AG (USAG) is a wholly owned subsidiary of UBL. Its revenues derived principally
from the trade business. USAG’s profit before tax increased by 6% over the previous year,
mainly driven by a rise in trade related fees. NII also showed a healthy growth of 8%. The
balance sheet continued to expand, led by growth in deposits and borrowings.
UBL Fund Managers Limited, Pakistan (UBLFM) is a 98.9% owned subsidiary of UBL and has
witnessed a growth in PBT of 20% over the prior year. The funds under management of UBLFM
remained at Rs. 76.15 billion, a significant growth of 24% over 2015. The growth in profits is
fueled by a rise in non-fund income.
UBL Bank (Tanzania) Limited (UBTL) was established in 2012 and is a wholly owned subsidiary of
UBL. During the year UBTL has incurred a loss, mainly as a result of reduced FX income,
provisioning against non-performing loans and higher administrative expenses with the opening
of a second branch. NII registered a growth of 11%. Foreign exchange earnings remained
heavily impacted, declining by 87% year on year as a result of a stable local currency and
reduced demand of foreign currency. Fee and commission revenues increased by 8%.
Technology
UBL retains its strong focus towards digitizing its operations and building its lead in providing
innovative solutions to its clients. In 2016 we have laid the foundation of a futuristic ‘Digital
Strategy’ that aims to revolutionize the way we do business. Our strategy has a three-pronged
focus: continuously improving client experience; investing in technologies that will enable that
experience; and, staying at the forefront of cybersecurity.
In 2016, UBL, in collaboration with MasterCard, UBL launched a QR code based payment
solution, “UBL MasterPass QR”, the first of its kind payment system for the local industry and a
global first for MasterCard. In recognition of this achievement, UBL also won the “Innovation
Award” at the Mastercard Innovation Forum. UBL has also enabled card less ATM transactions
that utilize biometric technology for authentication. At present, we own the largest biometric
enabled ATM network in Pakistan spanning over 530 ATMs. In the area of net banking, we have
deployed a two factor authentication mechanism for new sign-ups, SMS Alerts for online
activities and swift on boarding process with upgraded transaction limits.
Credit Ratings
In June 2016, JCR-VIS Credit Rating Company Limited (JCR-VIS) upgraded the entity ratings of
United Bank Limited (UBL) to ‘AAA/A-1+’ (Triple A/A-One Plus) from AA+/A-1+ (Double A
Plus/A-One Plus). Outlook on the assigned ratings is ‘Stable’.
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
10
The assigned ratings incorporate the sustained improvement across key performance areas
including asset quality, liquidity, capitalization and profitability. Being a strong domestic
franchise, UBL’s diversified businesses and revenue streams are also a key ratings driver; as the
bank has a sizeable presence in the overseas market. Ratings also derive strength from the
strong liquidity profile of the Bank and the commitment to maintain optimal capital levels with
a buffer over and above the regulatory CAR requirement
Capital Intelligence (CI), an international credit rating agency, has re-affirmed UBL’s long-term
and short-term Foreign Currency ratings at B- and B respectively in line with CI’s sovereign
ratings for Pakistan. In addition, the Bank’s Financial Strength rating has been re-affirmed at
BB+, with the Outlook reaffirmed at Stable based on the Bank’s strong performance.
Future Outlook
2016 was an eventful year for the country’s economy with appreciable improvement across key
macroeconomic areas. The challenge for the government now is to fully capitalize on this
momentum by undertaking structural reforms as well as continued improvement in the law and
order situation.
The economic fundamentals are likely to gain further strength in the coming year with the
government expected to increase development spending and speed up its economic reforms
agenda with the approaching general elections (May 2018). The depressed oil prices will
provide the necessary fiscal buffer for higher spending in addition to supporting the country’s
balance of payment outlook and containing inflation at comfortable levels.
2017 would also be critical from the standpoint of China Pakistan Economic Corridor (CPEC).
Potential improvement in the security situation after the massive counter-terrorism operation,
higher industrial activity driven by CPEC and other big ticket projects would largely improve
investor confidence and build a longer term view on Pakistan.
UBL’s extensive outreach, market dominance across major segments and global network places
us well to capitalize on Pakistan’s economic turnaround. Retail Bank would remain the core
driver of our franchise where our strategy would continue to revolve around aggressive
acquisition of new to bank clients and deepening of relationships in order to grow the core
deposits base. We are in process of scaling up our Small and Medium Enterprises (SME)
segment and plan to actively tap its potential to capture increased credit and trade volumes.
Leveraging our large rural presence, we will strive towards greater financial inclusion through
tailored product offerings for the segment. We are geared up to re-establish UBL as an
innovative and active player in the Consumer business through new product development and
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
11
enhanced penetration. The Corporate and Institutional Banking Group would continue to
expand relationships within the public and private sectors through selective credit expansion
that maximizes relationship yield and capital efficiency. The Financial Institutions Group would
take the lead in the CPEC initiative, building new strategic alliances and greater synergies with
our domestic and international network. UBL International would work towards strengthening
contribution to group profits by re-energizing the Retail Engine and undertaking cautious
expansion in corporate assets. In order to build on our position as the most progressive and
innovative bank, our focus would remain on enhancing alternate delivery channels including
the development of next generation payment solutions.
Statement under Clause XVI of the Code of Corporate Governance
The Board of Directors is committed to ensure that the requirements of Corporate Governance
set by the Securities and Exchange Commission of Pakistan are fully met. The Bank has adopted
good corporate governance practices and the Directors are pleased to report that:
The financial statements prepared by the management of the Bank present fairly the state of affairs of the Bank, the results of its operations, cash flows and changes in equity.
Proper books of account of the Bank have been maintained.
Appropriate accounting policies have been consistently applied in the preparation of the financial statements, except for the change in accounting policies as described in Note 5. Accounting estimates are based on reasonable and prudent judgment.
International Financial Reporting Standards, as applicable to banks in Pakistan, have been followed in the preparation of the financial statements without any departure therefrom.
The system of internal control in the Bank is sound in design, and is effectively
implemented and monitored.
There are no significant doubts regarding the Bank’s ability to continue as a going concern.
There has been no material departure from the best practices of corporate governance.
Performance highlights for the last six years are attached to these unconsolidated
financial statements.
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
12
Details of directors’ training programs are given in the statement of compliance with the code of corporate governance.
The Board has constituted the following three Committees with defined Terms of Reference
(TORs):
Board Audit Committee (BAC):
1. Mr. Arshad Ahmad Mir Chairman 2. Mr. Amin Uddin Member 3. Mr. Haider Zameer Choudrey Member
Board Risk and Compliance Committee (BRCC):
1. Mr. Zameer Mohammed Choudrey, CBE Chairman 2. Mr. Zaheer Sajjad Member 3. Mr. Wajahat Husain Member
Human Resource & Compensation Committee (HRCC):
1. Mr. Khalid A. Sherwani Chairman 2. Mr. Rizwan Pervez Member 3. Mr. Wajahat Husain Member
The number of Board Committees’ meetings held during the year and the number of meetings
attended by the directors is shown below:
BAC BRCC HRCC
Number of meetings held 4 4 4
Number of meetings attended:
Mr. Zameer Mohammed Choudrey, CBE - 4 -
Mr. Haider Zameer Choudrey 4 - -
Mr. Rizwan Pervez - - 4
Mr. Amin Uddin 4 - -
Mr. Arshad Ahmad Mir 4 - -
Mr. Zaheer Sajjad * - 3 1
Mr. Khalid A. Sherwani * - 1 3
Mr. Wajahat Husain - 4 4
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
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* During the year, BRCC and HRCC were reconstituted. The number of meetings attended by
these two directors have been mentioned accordingly.
The Bank operates five funded retirement Schemes which are the Provident Fund, Gratuity
Fund, Pension Fund, Benevolent Fund and General Provident Fund.
The values of the investments of these funds based on their latest audited financial statements
as at December 31, 2015 are as follows:
Rupees in ‘000
Employees’ Provident Fund 3,427,753
Employees’ Gratuity Fund 655,102
Staff Pension Fund 2,911,286
Staff General Provident Fund 1,201,336
Officers / Non-Officers’ Benevolent Fund 900,968
Meetings of the Board of Directors
During the year under review, the Board of Directors met six times. The number of meetings
attended by each Director during the year is shown below:
Name of the Director Designation Meetings attended
Sir Mohammed Anwar Pervez, OBE, HPk Chairman 6
Mr. Zameer Mohammed Choudrey, CBE Director 6
Mr. Amin Uddin Director 6
Mr. Arshad Ahmad Mir Director 6
Mr. Zaheer Sajjad Director 6
Mr. Haider Zameer Choudrey Director 6
Mr. Rizwan Pervez Director 6
Mr. Khalid A. Sherwani Director 6
Mr. Wajahat Husain President & CEO 6
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
14
Pattern of Shareholding
The pattern of shareholding as at December 31, 2016, as required u/s 236 of the Companies
Ordinance, 1984 and Clause (xvi) of the Code of Corporate Governance is given below:
Shareholders No. of Shares % of Ordinary
Shares
Bestway Group (BG) 752,406,007 61.46
Privatization Commission of Pakistan 1,714 0.00
General Public & Others 397,147,310 32.44
NIT 1,036,099 0.09
Banks, DFIs & NBFIs 24,552,940 2.01
Insurance Companies 20,328,372 1.66
Modarabas & Mutual Funds 21,324,307 1.74
International GDRs (non-voting shares) 7,382,938 0.60
TOTAL OUTSTANDING SHARES 1,224,179,687 100.00
The aggregate shares held by the following are:
No. of shares
a) Associated Companies, undertakings & related parties
- Bestway (Holdings) Limited * 631,728,895
- Bestway Cement Limited 93,649,744
b) NIT
- CDC-Trustee National Investment (Unit) Trust 1,036,099
c) Modarabas & Mutual Funds ** 21,324,307
d) Public sector companies and corporations 2,203,506
e) Banks, DFIs, NBFIs, Insurance Companies 44,881,312
f) Directors & CEO ***
-Sir Mohammed Anwar Pervez, OBE, HPk 12,765,368
-Zameer Mohammed Choudrey, CBE 2,348,870
- Haider Zameer Choudrey 2,000,000
- Rizwan Pervez 44,500
-Amin Uddin 2,750
-Arshad Ahmad Mir 2,500
- Zaheer Sajjad 2,537
- Khalid A. Sherwani 2,500
- Wajahat Husain, President & CEO 377,490
g) - Executives 1,607,711
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
15
* The Bank is a subsidiary of Bestway (Holdings) Limited which is incorporated in the United
Kingdom
** Name wise detail of Modarabas & Mutual Funds is annexed with Categories of Shareholders.
*** There were no shares held by the spouses or minor children of the Directors and CEO of the Bank.
Trades in the shares of UBL carried out by Directors, Executives and their spouses and minor
children, as defined in Clause xvi (l) of the Code of Corporate Governance are annexed along
with the Pattern of Shareholding.
Risk Management Framework
The Risk and Credit Policy Group has the following divisions, headed by senior executives,
reporting to the Group Executive - Risk and Credit Policy:-
Credit Policy & Research
Credit Risk Management
Market & Treasury Risk, Basel - Analytics & Reporting and FI Risk Management
Operational Risk & Basel II
International Risk
Consumer Credit Policy & Analytics
A Risk Management Committee comprising of heads of all areas of Risk, Business and Credit
Administration are responsible for reviewing and undertaking strategic business decisions with
a collective view on Credit Risk, Market Risk, Operational Risk and Capital.
The Domestic Credit Policies of the bank were updated and modified based on the changing risk
and regulatory environment and implemented during the year. The revision of bank’s policies
includes “Credit Policy 2016” and “Agriculture Credit Policy 2016”.
Shareholders holding 5% or more voting rights No. of shares %
Bestway (Holdings) Limited 631,728,895 51.60
Bestway Cement Limited 93,649,744 7.65
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
16
During the year the portfolio was mapped and aligned with revision in Prudential Regulations
and Circulars issued by SBP. This included the remapping of the SME portfolio as per the new
definition of ‘SE’ and ‘ME’. Furthermore, the revised processes for rescheduling and
restructuring have also been implemented. In addition to the above, a simplified loan
application form for facilitating agriculture lending has also been adopted. On the consumer
finance portfolio, as interest rates bottom out, policies were reviewed in view of changing
market dynamics to increase quality acquisitions. The overall processes were also strengthened
to ensure better portfolio performance. Additionally, portfolio management techniques such as
use of bureau reviews were also used for identifying high potential customers to assist in
recoveries from vintage NPLs.
The bank has maintained its CAR well above prescribed regulatory thresholds throughout the
year based on applicable requirements under Basel-III. The Internal Capital Adequacy
Assessment Process (ICAAP) Framework is continuously reviewed on an annual basis and
updated based on any material change in the underlying long term strategy of the bank.
The market risk function continues to actively monitor portfolio performance in light of the
changing dynamics of both domestic and international markets. The function uses sophisticated
tools including sensitivity analyses and scenario analyses of portfolio positions in order to
assess potential risks resulting from shifts in interest rates.
As per the bank’s approved Operational Risk Management Policy and Framework, a database is
being maintained for covering losses, control breaches and near misses. Major risk events are
analyzed from the control breach perspective and mitigating controls are assessed on design
and operational effectiveness. Quarterly updates on operational risk events are presented to
senior management and the Board’s Risk & Compliance Committee.
There were continued efforts to enhance the scope of and implement a robust ‘Operational
Risk Management Framework’. The bank has an internal operational risk awareness program
which is aimed at building capacity and inculcating a risk free culture in the staff through
workshops and on-job awareness for promoting greater risk awareness. Proactive management
and consistent improvements in operational risk profile and the overall control environment
remains a key focus across all functions.
Statement of Internal Controls
The Board is pleased to endorse the statement made by management relating to Internal
Controls over Financial Reporting (ICFR) and also the overall internal controls. The Statement on
Internal Controls is included in the Annual Report.
UNITED BANK LIMITED
DIRECTORS’ REPORT TO THE MEMBERS 2016
17
Auditors
The present auditors M/S. KPMG Taseer Hadi & Co., Chartered Accountants and M/S. A. F.
Ferguson & Co., Chartered Accountants, retire and being eligible, offer themselves for re-
appointment in the forthcoming Annual General Meeting. The Board of Directors, on the
recommendation of the Board Audit Committee, recommends M/S. KPMG Taseer Hadi & Co.,
Chartered Accountants and M/S. A. F. Ferguson & Co., Chartered Accountants, for re-
appointment as auditors of the Bank.
Conclusion
In conclusion, I would like to express my gratitude to UBL shareholders and customers for their
continued patronage as well as to my fellow Board members for their cooperation. We value
the commitment and dedication of our staff. We would also like to extend our appreciation to
the Government of Pakistan, the State Bank of Pakistan, the Securities & Exchange Commission
and other regulatory bodies for their continuous guidance and support.
For and on behalf of the Board,
Sir Mohammed Anwar Pervez, OBE, HPk
Chairman
Dubai
February 17, 2017
UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2016
Note 2016 2015
ASSETSCash and balances with treasury banks 6 131,506,861 112,011,276 Balances with other banks 7 14,920,994 16,859,118 Lendings to financial institutions 8 34,168,287 24,094,768 Investments 9 806,531,246 719,518,093
AdvancesPerforming 10 502,940,552 446,116,682 Non-performing - net of provision 10 7,170,372 9,297,198
510,110,924 455,413,880
Operating fixed assets 11 35,581,758 31,630,374 Deferred tax asset - net - - Other assets 12 44,730,953 41,123,334
1,577,551,023 1,400,650,843
LIABILITIESBills payable 14 11,756,422 13,391,739 Borrowings 15 201,549,619 163,131,947 Deposits and other accounts 16 1,179,887,048 1,051,235,170 Subordinated loans - - Liabilities against assets subject to finance lease - - Deferred tax liability - net 17 4,691,544 4,186,406 Other liabilities 18 27,879,529 26,570,106
1,425,764,162 1,258,515,368
NET ASSETS 151,786,861 142,135,475
REPRESENTED BY:Share capital 19 12,241,798 12,241,798 Reserves 40,454,505 38,402,303 Unappropriated profit 64,246,270 55,222,960
116,942,573 105,867,061
Surplus on revaluation of assets - net of deferred tax 20 34,844,288 36,268,414 151,786,861 142,135,475
CONTINGENCIES AND COMMITMENTS 21
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
--------------------- (Rupees in '000) ---------------------
UNCONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
Mark-up / return / interest earned 23 98,219,214 94,352,931 Mark-up / return / interest expensed 24 41,176,686 38,511,161 Net mark-up / return / interest income 57,042,528 55,841,770
Provision against loans and advances - net 10.3 504,901 3,058,621 Reversal of provision against lendings to financial institutions - net 8.7 (15,500) - Provision for diminution in value of investments - net 9.3 891,684 411,056 Bad debts written off directly 10.4 97,781 161,229
1,478,866 3,630,906 Net mark-up / return / interest income after provisions 55,563,662 52,210,864
Non mark-up / return / interest incomeFee, commission and brokerage income 12,318,684 12,203,210 Dividend income 3,266,559 3,204,850 Income from dealing in foreign currencies 1,701,016 2,270,980 Gain on sale of securities - net 25 5,364,463 3,228,321 Unrealized (loss) / gain on revaluation of investments classified as held for trading 9.4 (2,184) 9,202 Other income 26 960,104 1,070,444 Total non mark-up / return / interest income 23,608,642 21,987,007
79,172,304 74,197,871
Non mark-up / return / interest expensesAdministrative expenses 27 31,903,598 30,896,159 Other provisions - net 28 260,848 79,417 Workers' Welfare Fund 29 922,449 845,507 Other charges 30 69,813 202,103 Total non mark-up / return / interest expenses 33,156,708 32,023,186 Profit before taxation 46,015,596 42,174,685
Taxation - Current 31 14,898,709 15,042,952 Taxation - Prior 31 2,100,381 1,800,541 Taxation - Deferred 31 1,286,394 (395,957)
18,285,484 16,447,536 Profit after taxation 27,730,112 25,727,149
Earnings per share - basic and diluted 32 22.65 21.02
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
----------- (Rupees) -----------
------- (Rupees in '000) -------
UNCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015
Profit after taxation 27,730,112 25,727,149
Other comprehensive income:
Items that will not be reclassified to profit or loss in subsequent periods
Remeasurement loss of defined benefit obligations (107,434) (438,264) Related deferred tax reversal 37,602 153,392
(69,832) (284,872) Items that may be reclassified to profit or loss in subsequent periods
Exchange differences on translation of net investment in foreign branches (720,809) 1,699,457
Other comprehensive income transferred to equity 26,939,471 27,141,734
Items that may be reclassified to profit or loss in subsequent periods
(Deficit) / surplus arising on revaluation of available for sale securities (2,283,241) 8,294,461 Related deferred tax reversal / (charge) 799,135 (2,903,061)
(1,484,106) 5,391,400
Total comprehensive income during the year - net of tax 25,455,365 32,533,134
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
------- (Rupees in '000) -------
UNCONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
CASH FLOW FROM OPERATING ACTIVITIESProfit before taxation 46,015,596 42,174,685 Less: Dividend income 3,266,559 3,204,850
42,749,037 38,969,835 Adjustments: Depreciation on operating fixed assets 1,607,107 1,521,874 Depreciation on Islamic financing against leased assets (Ijarah) 205,186 225,424 Amortization 314,870 386,494 Workers' Welfare Fund 922,449 845,507 Provision for retirement benefits 158,912 572,740 Provision for compensated absences 315,084 268,505 Provision against loans and advances - net 504,901 3,058,621 Reversal of provision against lendings to financial institutions - net (15,500) - Provision for diminution in value of investments - net 891,684 411,056 Reversal of provision in respect of investments disposed off during the year (569,357) (41,569) Provision against off balance sheet items 27,081 6,279 Gain on sale of operating fixed assets - net (44,273) (19,023) Gain on sale of ijarah assets (44,685) (863) Bad debts written-off directly 97,781 161,229 Unrealized loss / (gain) on revaluation of investments classified as held for trading 2,184 (9,202) Provision charge / (reversal) against other assets - net 143,908 (9,249)
4,517,332 7,377,823 47,266,369 46,347,658
(Increase) / decrease in operating assets Lendings to financial institutions (10,058,019) (2,222,630) Held for trading securities 3,606,415 (3,718,477) Advances (55,651,884) (23,860,288) Other assets (excluding advance taxation) 1,031,748 (1,909,088)
(61,071,740) (31,710,483) Increase / (decrease) in operating liabilities Bills payable (1,635,317) 3,838,154 Borrowings 38,417,672 110,066,791 Deposits and other accounts 128,651,878 156,152,117 Other liabilities (excluding current taxation) 1,573,196 (845,297)
167,007,429 269,211,765 153,202,058 283,848,940
Payments on account of staff retirement benefits (608,600) (1,218,518) Income taxes paid (21,816,894) (15,942,496) Net cash inflow from operating activities 130,776,564 266,687,926
CASH FLOW FROM INVESTING ACTIVITIESNet investment in securities (93,755,108) (210,531,438) Dividend income received 3,158,032 3,199,400 Investment in operating fixed assets (5,927,402) (3,937,323) Sale proceeds from disposal of operating fixed assets 91,203 49,084 Sale proceeds from disposal of ijarah assets 191,657 72,365 Net cash outflow from investing activities (96,241,618) (211,147,912)
NET CASH OUTFLOW FROM FINANCING ACTIVITIESDividends paid (16,256,676) (15,942,157) Net cash outflow from financing activities (16,256,676) (15,942,157) Exchange differences on translation of net investment in foreign branches (720,809) 1,699,457
Increase in cash and cash equivalents 17,557,461 41,297,314
Cash and cash equivalents at the beginning of the year 128,870,394 87,573,080 Cash and cash equivalents at the end of the year 33 146,427,855 128,870,394
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
------- (Rupees in '000) -------
UNCONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2016
Balance as at December 31, 2014 12,241,798 21,851,889 12,278,242 48,217,351 94,589,280
Transactions with owners for the year ended December 31, 2015
Final cash dividend - December 31, 2014 declaredsubsequent to the year end at Rs.4.0 per share - - - (4,896,719) (4,896,719)
Interim cash dividend - March 31, 2015 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
Interim cash dividend - June 30, 2015 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
Interim cash dividend - September 30, 2015 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
- - - (15,914,336) (15,914,336)
Total comprehensive income for the year ended December 31, 2015
Profit after taxation for the year ended December 31, 2015 - - - 25,727,149 25,727,149
Other comprehensive income - net of tax - - 1,699,457 (284,872) 1,414,585 Total comprehensive income for the year ended December 31, 2015 - - 1,699,457 25,442,277 27,141,734
Transfer from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - 50,383 50,383
Transfer to statutory reserve - 2,572,715 - (2,572,715) -
Balance as at December 31, 2015 12,241,798 24,424,604 13,977,699 55,222,960 105,867,061
Transactions with owners for the year ended December 31, 2016
Final cash dividend - December 31, 2015 declaredsubsequent to the year end at Rs.4.0 per share - - - (4,896,719) (4,896,719)
Interim cash dividend - March 31, 2016 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
Interim cash dividend - June 30, 2016 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
Interim cash dividend - September 30, 2016 declaredat Rs.3.0 per share - - - (3,672,539) (3,672,539)
- - - (15,914,336) (15,914,336)
Total comprehensive income for the year ended December 31, 2016
Profit after taxation for the year ended December 31, 2016 - - - 27,730,112 27,730,112 Other comprehensive income - net of tax - - (720,809) (69,832) (790,641) Total comprehensive income for the year ended December 31, 2016 - - (720,809) 27,660,280 26,939,471
Transfer from surplus on revaluation of fixed assets to unappropriated profit - net of tax - - - 50,377 50,377
Transfer to statutory reserve - 2,773,011 - (2,773,011) -
Balance as at December 31, 2016 12,241,798 27,197,615 13,256,890 64,246,270 116,942,573
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
Appropriations recommended by the Board of Directors subsequent to the year ended December 31, 2016 are disclosed in note 46to these unconsolidated financial statements.
---------------------------------------------------- (Rupees in '000) ----------------------------------------------------
Share capital Unappropriated profit TotalStatutory
reserve
Capital reserve - Exchange translation
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
1. STATUS AND NATURE OF BUSINESS
2. BASIS OF PRESENTATION
2.1
2.2
3. STATEMENT OF COMPLIANCE
3.1
3.2
3.3
3.4
Standard, Interpretation or Amendment
IFRS 2 - Share-based Payment - (Amendments)IFRS 12 - Disclosure of Interest in Other Entities - (Improvement)
United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial banking andrelated services. The Bank's registered office and principal office are situated at UBL Building, Jinnah Avenue, Blue Area,Islamabad and at UBL Head Office, I. I. Chundrigar Road, Karachi respectively. The Bank operates 1,341 (2015: 1,312)branches inside Pakistan including 47 (2015: 41) Islamic Banking branches and 2 (2015: 1) branches in Export ProcessingZones. The Bank also operates 18 (2015: 18) branches outside Pakistan as at December 31, 2016. The Bank is asubsidiary of Bestway (Holdings) Limited which is incorporated in the United Kingdom.
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes,the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of trade-related modesof financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-upin price on deferred payment basis. The purchases and sales arising under these arrangements are not reflected in theseunconsolidated financial statements as such, but are restricted to the amount of facility actually utilized and the appropriateportion of mark-up thereon. The Islamic Banking branches of the Bank have complied with the requirements set out underthe Islamic Financial Accounting Standards issued by the Institute of Chartered Accountants of Pakistan (ICAP) and notifiedunder the provisions of the Companies Ordinance, 1984.
The SBP, vide BSD Circular letter No. 10, dated August 26, 2002 has deferred the applicability of International AccountingStandard 39, Financial Instruments: Recognition and Measurement and International Accounting Standard 40, InvestmentProperty for banking companies till further instructions. Further, according to the notification of the SECP issued vide SRO411(I)/2008 dated April 28, 2008, IFRS 7, Financial Instruments: Disclosures has not been made applicable for banks.Accordingly, the requirements of these standards have not been considered in the preparation of these unconsolidatedfinancial statements. However, investments have been classified and valued in accordance with the requirements of variouscirculars issued by the SBP. Further, segment information is being disclosed in accordance with SBP’s prescribed format asper BSD circular 4 dated Feb 17, 2006 which prevails over the requirements specified in IFRS 8.
These unconsolidated financial statements have been prepared in accordance with approved accounting standards asapplicable in Pakistan, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 andthe directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP. Approved accountingstandards comprise of International Financial Reporting Standards (IFRS) and interpretations issued by the InternationalAccounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the ICAP. Wherever therequirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the directives issued by theSECP and the SBP differ with the requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984, theBanking Companies Ordinance, 1962 or the said directives prevail.
The Bank's ordinary shares are listed on Pakistan Stock Exchange. Its Global Depository Receipts (GDRs) are on the list ofthe UK Listing Authority and the London Stock Exchange Professional Securities Market. These GDRs are also eligible fortrading on the International Order Book System of the London Stock Exchange. Further, the GDRs constitute an offering inthe United States only to qualified institutional buyers in reliance on Rule 144A under the US Securities Act of 1933 and anoffering outside the United States in reliance on Regulation S.
The following revised standards, amendments and interpretations with respect to the approved accounting standards wouldbe effective from the dates mentioned below against the respective standard or interpretation:
Key financial figures of the Islamic Banking branches are disclosed in note 44 to these unconsolidated financial statements.
These unconsolidated financial statements represent the separate financial statements of the Bank. The consolidatedfinancial statements of the Bank and its subsidiaries are presented separately.
Standards, interpretations and amendments to approved accounting standards that are not yet effective
January 01, 2017
Effective date (annual periodsbeginning on or after)
January 01, 2018
6
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Standard, Interpretation or Amendment
IAS 12 - Income Taxes - (Amendments)IAS 7 - Statement of cash flow - (Amendments)IAS 28 - Investments in associates and joint ventures - (Improvement)IFRIC 22- Foreign Currency Transactions and Advance Consideration
Standard or Interpretation
IFRS 9 - Financial Instruments: Classification and MeasurementIFRS 15 - Revenue from contracts with customers
4. BASIS OF MEASUREMENT
4.1 Accounting convention
4.2 Critical accounting estimates and judgments
i) classification of investments (notes 5.3 and 9)
ii)
iii) income taxes (notes 5.7 and 31)
iv) staff retirement benefits (notes 5.9 and 35)
v) fair value of derivatives (notes 5.14.2 and 18.3)
vi) operating fixed assets, revaluation, depreciation and amortization (notes 5.5 and 11)
vii) impairment (note 5.6)
viii) valuation of non-banking assets acquired in satisfaction of claims (note 5)
January 01, 2018
These unconsolidated financial statements have been prepared under the historical cost convention except that certainoperating fixed assets and non-banking assets acquired in satisfaction of claims have been stated at revalued amounts andcertain investments and derivative financial instruments have been stated at fair value.
Significant accounting estimates and areas where judgments were made by management in the application of accountingpolicies are as follows:
January 01, 2018
January 01, 2018
provision against investments (notes 5.3 and 9.3), lendings to financial institutions (note 8.7) and advances (notes 5.4and 10.3)
The preparation of these unconsolidated financial statements in conformity with approved accounting standards requiresmanagement to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities andincome and expenses. It also requires management to exercise judgment in the application of its accounting policies. Theestimates and assumptions are based on historical experience and various other factors that are believed to be reasonableunder the circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the periodof revision and future periods if the revision affects both current and future periods.
The Bank expects that the adoption of above amendments and interpretations will not affect its financial statements in theperiod of initial application.
IASB Effective date (annual periods beginning on or after)
Effective date (annual periodsbeginning on or after)
January 01, 2018
January 01, 2017
The following new standards have been issued by the IASB, but have not yet been notified by the SECP for application inPakistan.
January 01, 2017
7
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Non banking assets acquired in satisfaction of claims
5.1 Cash and cash equivalents
5.2 Lendings to / borrowings from financial institutions
5.2.1 Purchase under resale agreements
5.2.2 Sale under repurchase agreements
5.2.3 Bai Muajjal
5.3 Investments
Held for trading
Held to maturity
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices, interestrate movements and dealer's margin, or are securities included in a portfolio in which a pattern of short term profit takingexists.
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the positiveintent and ability to hold to maturity.
The Bank enters into transactions of reverse repos and repos at contracted rates for a specified period of time. These arerecorded as under:
Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury banksand balances with other banks.
The accounting policies adopted in the preparation of these unconsolidated financial statements are consistent with those ofthe previous financial year, except for the following:
Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions. Thedifferential between the purchase price and the resale price is amortized over the period of the agreement and recorded asincome.
The securities sold under Bai Muajjal agreement are derecognised on the date of disposal. Receivable against such sale isrecognised at the agreed sale price. The difference between the sale price and the carrying value on the date of disposal istaken to income on straightline basis.
Securities held as collateral are not recognized in the unconsolidated financial statements, unless these are sold to thirdparties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings fromfinancial institutions.
Investments of the Bank, other than investments in subsidiaries and associates, are classified as held for trading, held tomaturity and available for sale.
Securities sold subject to a repurchase agreement (repo) are retained in the unconsolidated financial statements asinvestments and the counterparty liability is included in borrowings from financial institutions. The differential between thesale price and the repurchase price is amortized over the period of the agreement and recorded as an expense.
Effective January 1, 2016, the Bank has changed its accounting policy for recording of non-banking assets acquired insatisfaction of claims to comply with the requirements of the 'Regulations for Debt Property Swap' (the regulations)issued by SBP vide its BPRD Circular No. 1 of 2016, dated January 1, 2016. In line with the guidance provided in theRegulations, the non-banking assets acquired in satisfaction of claims are carried at revalued amounts lessaccumulated depreciation. These assets are revalued by professionally qualified valuers with sufficient regularity toensure that their net carrying value does not differ materially from their fair value. A surplus arising on revaluation ofproperty is credited to the 'surplus on revaluation of non-banking assets' account and any deficit arising on revaluationis taken to profit and loss account directly. Legal fees, transfer costs and direct costs of acquiring title to property arecharged to profit and loss account and not capitalised. Previously, non-banking assets acquired in satisfaction ofclaims were carried at cost less impairment, if any. Had the accounting policy not been changed, non-banking assets(included in Other Assets in the statement of financial position) would have been lower by Rs 169.861 million whilesurplus on revaluation of assets and related deferred tax would have been lower by Rs 110.410 million and Rs 59.451million respectively.
8
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Available for sale
Initial measurement
Subsequent measurement
Held for trading
Held to maturity
Available for sale
Investments in Subsidiaries and Associates
Gains and losses on disposal of investments in subsidiaries and associates are included in the profit and loss account.
5.4 Advances
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or held tomaturity categories.
These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included in theprofit and loss account.
Provisions for diminution in the value of term finance certificates and Sukuks are made as per the ageing criteria prescribedby the Prudential Regulations issued by the SBP. Provisions for diminution in the value of other securities are made forimpairment, if any.
Advances are stated net of specific and general provisions which are charged to the profit and loss account. Specificprovisions against domestic advances and general provision against domestic loans to small enterprises and consumerloans are determined on the basis of the Prudential Regulations and other directives issued by the SBP. General andspecific provisions pertaining to overseas advances are made in accordance with the requirements of the regulatoryauthorities of the respective countries. If circumstances warrant, the Bank, from time to time, makes general provisionsagainst weaknesses in its portfolio on the basis of management's estimation.
Investments are initially recognized at fair value which, in the case of investments other than held for trading, includestransaction costs associated with the investments. Transaction costs on investments held for trading are expensed asincurred.
Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment loss onsubsidiaries and associates is recognized in the profit and loss account as it arises provided the increased carrying valuedoes not exceed cost.
Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities iscalculated with reference to the net assets of the investee company as per the latest available audited financial statements.A decline in the carrying value is charged to the profit and loss account. A subsequent increase in the carrying value, uptothe cost of the investment, is credited to the profit and loss account. Investments in other unquoted securities are valued atcost less impairment, if any.
All “regular way” purchases and sales of investments are recognized on the trade date, i.e., the date that the Bank commitsto purchase or sell the investment. Regular way purchases or sales are purchases or sales of investments that requiredelivery of investments within the time frame generally established by regulation or convention in the market place.
Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value. Anysurplus or deficit arising thereon is kept in a separate account shown in the statement of financial position below equity andis taken to the profit and loss account when realized upon disposal or when the investment is considered to be impaired.
These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized toreflect irrecoverable amounts.
9
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5.4.1 Islamic financings and related assets
5.5 Operating fixed assets and depreciation
5.5.1 Tangible
5.5.2 Intangible assets
The Bank determines write-offs in accordance with the criteria prescribed by the SBP vide BPRD Circular No. 06 datedJune 05, 2007.
Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at therates specified in note 11.2 to these unconsolidated financial statements. The depreciation charge for the year is calculatedon a straight line basis after taking into account the residual value, if any. The residual values and useful lives are reviewedand adjusted, if appropriate, at each statement of financial position date.
Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost orrevalued amount less accumulated depreciation and accumulated impairment losses (if any). Land is carried at revaluedamount less impairment losses while capital work-in-progress is stated at cost less impairment losses. The cost and theaccumulated depreciation of property and equipment of foreign branches include exchange differences arising on currencytranslation at the year-end rates of exchange.
Advances are written off when there is no realistic prospect of recovery. The amount so written off is a book entry and doesnot necessarily prejudice the Bank's right of recovery against the customer.
Land and buildings are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carryingvalue does not differ materially from their fair value. A surplus arising on revaluation is credited to the surplus on revaluationof fixed assets account. Any deficit arising on subsequent revaluation of fixed assets is adjusted against the balance in theabove mentioned surplus account as allowed under the provisions of the Companies Ordinance, 1984. The surplus onrevaluation of fixed assets, to the extent of incremental depreciation, is transferred to unappropriated profit.
Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus onrevaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profit.
Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. Normal repairs andmaintenance are charged to the profit and loss account as and when incurred.
Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. The cost andthe accumulated amortization of intangible assets of foreign branches include exchange differences arising on currencytranslation at the year-end rates of exchange. Amortization is calculated so as to write off the amortizable amount of theassets over their expected useful lives at the rates specified in note 11.3 to these unconsolidated financial statements. Theamortization charge for the year is calculated on a straight line basis after taking into account the residual value, if any. Theresidual values and useful lives are reviewed and adjusted, if appropriate, at each statement of financial position date.Amortization on additions is charged from the month the asset is available for use. No amortization is charged in the monthof disposal.
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the monthof disposal.
Receivables under Murabaha financing represent cost price plus an agreed mark-up on deferred sale arrangement. Markupincome is recognised on a straight line basis over the period of the instalments.
Diminishing Musharaka is partnership agreement between the Bank and its customer for financing vehicle or plant andmachinery. The receivable is recorded to the extent of Bank's share in the purchase of asset. Income is recognised onaccrual basis
Gains and losses on sale of intangible assets are included in the profit and loss account.
Ijarah financing represents arrangements whereby the Bank (being the owner of assets) transfers its usufruct to itscustomers for an agreed period at an agreed consideration. Assets leased out under Ijarah are stated at cost lessaccumulated depreciation and accumulated impairment losses, if any. These are depreciated over the term of the lease.Ijarah income is recognized on an accrual basis.
10
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5.6 Impairment
Impairment of available for sale equity investments
Impairment of investments in subsidiaries and associates
Impairment in non-financial assets (excluding deferred tax)
5.7 Taxation
5.7.1 Current
5.7.2 Prior years
5.7.3 Deferred
5.8 Provisions
The Bank also recognizes deferred tax asset / liability on the deficit / surplus on revaluation of fixed assets / non-bankingassets acquired in satisfaction of claims and securities which is adjusted against the related deficit / surplus in accordancewith the requirements of IAS 12, Income Taxes.
The carrying amounts of non-financial assets are reviewed at each reporting date for impairment whenever events orchanges in circumstances indicate that the carrying amounts of these assets may not be recoverable. If such indicationexists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to theirrecoverable amount. The resulting impairment loss is charged to the profit and loss account except for an impairment losson revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does notexceed the revaluation surplus.
Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events which makes itprobable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can bemade.
Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws andat the prevailing rates for taxation on income earned by the Bank.
The taxation charge for prior years represents adjustments to the tax charge relating to prior years, arising fromassessments / changes in laws and changes in estimates made during the current year.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available againstwhich the assets can be utilized.
The Bank considers that a decline in the recoverable value of the investment in a subsidiary or an associate below its costmay be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value inuse. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the profitand loss account. A subsequent reversal of an impairment loss, upto the cost of the investment in the subsidiary or theassociate, is credited to the profit and loss account.
Available for sale equity investments are impaired when there has been a significant or prolonged decline in their fair valuebelow their cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bankevaluates, among other factors, the normal volatility in share price.
Deferred tax is recognized using the balance sheet method on all major temporary differences between the amountsattributed to assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxis calculated at the rates that are expected to apply to the period when the differences are expected to reverse, based ontax rates that have been enacted or substantively enacted at the statement of financial position date.
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to theextent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax assetto be utilized.
11
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate.
5.9 Staff retirement and other benefits
5.9.1 Staff retirement benefit schemes
The Bank operates the following staff retirement schemes for its employees:
a)
- an approved contributory provident fund (defined contribution scheme); and- an approved gratuity scheme (defined benefit scheme).
b) For employees who have not opted for the conversion option introduced in 2001, the Bank operates:
- an approved non-contributory provident fund in lieu of the contributory provident fund; and- an approved funded pension scheme, introduced in 1986 (defined benefit scheme).
5.9.2 Other benefits
a) Employees' compensated absences
b) Post retirement medical benefits (defined benefit scheme)
c) Employee motivation and retention scheme
5.9.3 Remeasurement of defined benefit obligations
Provision against identified non-funded losses is recognized when intimated and reasonable certainty exists that the Bankwill be required to settle the obligation. The provision is charged to the profit and loss account net of expected recovery andthe obligation is classified under other liabilities.
For new employees and for those who opted for the below mentioned conversion option introduced in 2001, the Bankoperates:
For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no furtherpayment obligation once the contributions have been paid. The contributions are recognized as an expense when theobligation to make payments to the fund has been established. Prepaid contributions are recognized as an asset to theextent that a cash refund or a reduction in future payments is available.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions arerecognized in other comprehensive income when they occur with no subsequent recycling through the profit and lossaccount.
In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option (b)above to move to option (a). This conversion option ceased on December 31, 2003.
The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible employeeson the basis of actuarial advice under the Projected Unit Credit Method.
Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected UnitCredit Method.
The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of thescheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates.
The Bank provides post retirement medical benefits to eligible retired employees. Provision is made on the basis ofactuarial advice under the Projected Unit Credit Method.
The Bank also operates benevolent fund for all its eligible employees (defined benefit scheme).
12
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5.10 Subordinated loans
5.11 Borrowings / deposits
a) Borrowings / deposits are recorded at the amount of proceeds received.
b)
5.12 Revenue recognition
5.12.1 Advances and investments
5.12.2 Dividend income
Dividend income is recognised when the right to receive the dividend is established.
5.12.3 Fee, brokerage and commission income
5.12.4 Grants
5.13 Foreign currencies
5.13.1 Functional and presentation currency
5.13.2 Foreign currency transactions
Items included in these unconsolidated financial statements are measured using the currency of the primary economicenvironment in which the Bank operates. These unconsolidated financial statements are presented in Pakistani Rupees,which is the Bank's functional and presentation currency.
Fee, brokerage and commission income is recognized on an accrual basis.
Interest or mark-up recoverable on non-performing or classified advances and investments is recognized on a receipt basis.
Grants received are recorded as income when the right to receive the grant, based on the related expenditure having beenincurred, has been established.
Subordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on subordinated loans isrecognised separately as part of other liabilities and is charged to the profit and loss account over the period on an accrualbasis.
Revenue is recognized to the extent that the economic benefits associated with a transaction will flow to the Bank and therevenue can be reliably measured. The following recognition criteria must be met before revenue is recognized.
Remeasurement gains and losses pertaining to long term compensated absences are recognized in the profit and lossaccount immediately.
Mark-up / return / interest on performing advances and investments is recognized on a time proportionate basis over theterm of the advances and investments that takes into account the effective yield of the asset. Where debt securities arepurchased at a premium or discount, such premium / discount is amortized through the profit and loss account over theremaining period of maturity of the debt securities.
Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction date.Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at thestatement of financial position date. Forward foreign exchange contracts and foreign bills purchased are valued in rupees atthe forward foreign exchange rates applicable to their respective maturities.
The cost of borrowings / deposits is recognized on an accrual basis as an expense in the period in which it is incurred.
13
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5.13.3 Foreign operations
5.13.4 Translation gains and losses
5.13.5 Contingencies and commitments
5.14 Financial instruments
5.14.1 Financial assets and liabilities
5.14.2 Derivative financial instruments
5.14.3 Hedge accounting
Cash flow hedges
The Bank makes use of derivative instruments to manage exposures to interest rate, foreign currency and credit risks. Inorder to manage particular risks, the Bank may undertake a hedge. The Bank applies hedge accounting for transactionswhich meet the specified criteria.
For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge isrecognised initially in the statement of changes in equity, and recycled through the profit and loss account in the periodswhen the hedged item will affect profit or loss. Any gain or loss on the ineffective portion of the hedging instrument isrecognised in the profit and loss account immediately.
At the inception of the hedging relationship, the Bank formally documents the relationship between the hedged item and thehedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge and the methodthat will be used to assess the effectiveness of the hedging relationship. A formal assessment is also undertaken toascertain whether the hedging instrument is expected to be highly effective in offsetting the designated risk in the hedgeditem. A hedge is regarded as highly effective if, during the period for which the hedge is designated, changes in the fairvalue or cash flows attributable to the hedged item are expected to be offset by between 80% to 125% by correspondingchanges in the fair value or cash flows attributable to the hedging instrument.
Translation gains and losses are taken to the profit and loss account, except those arising on translation of the netinvestment in foreign branches which are taken to capital reserves (Exchange Translation Reserve) until the disposal of thenet investment, at which time these are recognised in the profit and loss account.
The assets and liabilities of foreign operations are translated to rupees at exchange rates prevailing at the statement offinancial position date. The results of foreign operations are translated at the average rates of exchange for the year.
Derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is enteredinto and are subsequently re-measured at fair value using appropriate valuation techniques. All derivative financialinstruments are carried as assets when their fair value is positive and liabilities when their fair value is negative. Any changein the fair value of derivative financial instruments during the period is taken to the profit and loss account.
Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financialstatements at contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed inrupee terms at the rates of exchange prevailing at the statement of financial position date.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, anycumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is ultimatelyrecognised in the profit and loss account.
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing atthe date of initial recognition of the non-monetary assets / liabilities.
Financial assets and liabilities carried on the statement of financial position include cash and bank balances, lendings tofinancial institutions, investments, advances, certain receivables, bills payable, borrowings from financial institutions,deposits, subordinated loans and certain payables. The particular recognition methods adopted for significant financialassets and financial liabilities are disclosed in the individual policy notes associated with them.
14
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
5.14.4 Off setting
5.15 Segment reporting
5.15.1 Business segments
(a) Corporate finance
(b) Trading and sales
(c) Retail banking
(d) Commercial banking
(e) Others
Others includes functions which cannot be classified in any of the above segments.
5.15.2 Geographical segments
The Bank operates in following geographical regions:
- Pakistan- Middle East- United States of America- Export Processing Zones in Karachi and Sialkot
5.16 Dividends and appropriations to reserves
5.17 Earnings per share
A segment is a distinguishable component of the Bank that is engaged either in providing particular products or services(business segment), or in providing products or services within a particular economic environment (geographical segment),and is subject to risks and rewards that are different from those of other segments.
Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated financial statementswhen there is a legally enforceable right to set off and the Bank intends to either settle on a net basis, or to realize theassets and to settle the liabilities simultaneously.
The Bank presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or lossattributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during theyear.
Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriationsrequired by law which are recorded in the period to which they pertain.
Commercial banking includes project finance, working capital finance, trade finance, import and export, factoring,leasing, lending, deposits and guarantees.
Corporate finance includes services provided in connection with mergers and acquisitions, project finance and theunderwriting / arrangement of debt and equity instruments through syndications, Initial Public Offerings and privateplacements.
Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless banking.
Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendingsand borrowings and derivatives for hedging and market making.
15
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 20156. CASH AND BALANCES WITH TREASURY BANKS
In handLocal currency 13,072,593 8,776,285Foreign currency 4,896,410 4,113,207
17,969,003 12,889,492With State Bank of Pakistan in
Local currency current accounts 6.1 33,315,897 24,910,033Foreign currency current accounts 6.2 2,307,913 2,380,015Foreign currency deposit account 6.3 6,841,899 6,945,540
42,465,709 34,235,588With other central banks in Foreign currency current accounts 6.4 31,773,168 32,172,907 Foreign currency deposit accounts 6.5 1,775,653 1,888,726
33,548,821 34,061,633With National Bank of Pakistan in local currency current accounts 37,422,940 30,641,342National Prize Bonds 100,388 183,221
131,506,861 112,011,276
6.1
6.2
6.3
6.4
6.5
Note 2016 2015
7. BALANCES WITH OTHER BANKS
Inside PakistanIn current accounts - 14,889 In deposit accounts 7.1 2,825,007 2,930,007
2,825,007 2,944,896
Outside PakistanIn current accounts 5,342,117 6,425,982 In deposit accounts 7.2 6,753,870 7,488,240
12,095,987 13,914,222
14,920,994 16,859,118
7.1
7.2
------- (Rupees in '000) -------
This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of theBanking Companies Ordinance, 1962.
------- (Rupees in '000) -------
This represents account maintained with the SBP to comply with the Special Cash Reserve requirement. The return on thisaccount is declared by the SBP on a monthly basis and, as at December 31, 2016, carries mark-up at the rate of 0.00%(2015: 0.00%) per annum.
This represents a US Dollar settlement account maintained with the SBP and current accounts maintained with the SBP tocomply with statutory requirements.
This represents placement with overseas central banks and carries mark-up at the rate of 0.75% (2015: 0.50%) perannum.
These carry mark-up at rates ranging from 5.80% to 5.95% (2015: 6.00% to 6.30%) per annum.
These carry mark-up at rates ranging from 0.10% to 1.84% (2015: 0.10% to 1.90%) per annum and include balancesamounting to Rs. 1,004.146 million (2015: Rs. 225.193 million), maintained with an overseas bank against the statutoryreserves requirement of a foreign branch.
Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements pertainingto the foreign branches of the Bank.
16
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 20158. LENDINGS TO FINANCIAL INSTITUTIONS
Call money lending 8.2 1,500,000 1,300,000 Repurchase agreement lendings 8.3 - 976,841 Bai Muajjal receivable from other financial institutions 8.4 11,226,452 - Other lendings to financial institutions 8.5 & 8.6 22,247,898 22,640,412
34,974,350 24,917,253 Provision against lendings to financial institutions 8.7 (806,063) (822,485)
34,168,287 24,094,768 8.1 Particulars of lendings to financial institutions - gross
In local currency 19,335,529 5,496,662 In foreign currencies 15,638,821 19,420,591
34,974,350 24,917,253
8.2
8.3 Securities held as collateral against repurchase agreement lendings
2015Held by Bank Further given
as collateral / sold
Total Held by Bank Further given as collateral / sold
Total
Market Treasury Bills - - - 976,841 - # 976,841
8.4
8.5
8.6
8.7
2016 2015
Opening balance 822,485 795,242 Exchange adjustments (922) 27,243
Reversals for the year (15,500) -
Closing balance 806,063 822,485
------- (Rupees in '000) -------
This represents provision made against lendings to financial institutions with movement as follows:
Lendings pertaining to domestic operations carry mark-up at rates ranging from 0.00% to 8.14% per annum (2015: 0.00%to 8.80% per annum) and are due to mature latest by February 2022. Lendings pertaining to overseas operations carrymark-up at rates ranging from 1.20% to 4.13% per annum (2015: 0.00% to 4.49% per annum) and are due to mature latestby July 2021.
2016
This includes an unsecured subordinated loan amounting to Rs. 257.916 million (2015: Rs. 311.468 million) to UnitedNational Bank Limited (UBL UK), a subsidiary, and is due to mature by October 2018. The loan carries mark-up at a rate ofsix months LIBOR + 2% per annum payable semi-annually, with principal to be paid at maturity. The right of the Bank issubordinated as to the receipt of principal and mark-up to all other indebtedness of United Bank UK (including deposits).
----------------------------------------------- (Rupees in '000) -----------------------------------------------
------- (Rupees in '000) -------
This represents unsecured lending carrying mark-up at a rate 5.25% per annum (2015: 4.50% to 5.80%per annum) and isdue to mature by January 2017.
This represents Bai Muajjal agreements entered into with various financial institutions whereby the Bank has sold sukuks having carrying value of Rs. 11,073.312 million on deferred payment basis. The average return on these transactions is 5.60%. The balances are due to mature latest by March 2017.
17
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
9. INVESTMENTS
9.1 Investments by typeNote Held by
BankGiven as collateral
Total Held by Bank
Given as collateral
Total
Held for trading securitiesMarket Treasury Bills 8,120,078 - 8,120,078 9,757,289 - 9,757,289Pakistan Investment Bonds 154,805 - 154,805 2,095,573 - 2,095,573Ordinary shares of listed companies - - - 19,234 - 19,234
8,274,883 - 8,274,883 11,872,096 - 11,872,096Available for sale securitiesMarket Treasury Bills 25,117,903 47,933,801 73,051,704 54,047,186 894,235 54,941,421Pakistan Investment Bonds 184,088,469 96,854,633 280,943,102 153,364,754 111,285,139 264,649,893Government of Pakistan Sukuk 7,233,271 - 7,233,271 9,909,514 - 9,909,514Government of Pakistan Eurobonds 14,053,787 - 14,053,787 14,114,386 - 14,114,386Ordinary shares of listed companies 16,007,107 - 16,007,107 19,310,549 - 19,310,549Preference shares 372,636 - 372,636 434,765 - 434,765Ordinary shares of unlisted companies 243,084 - 243,084 243,087 - 243,087Investment in REIT 458,590 - 458,590 458,590 - 458,590Term Finance Certificates 556,284 - 556,284 1,371,162 - 1,371,162Foreign bonds - sovereign 19,250,876 - 19,250,876 17,232,964 - 17,232,964Foreign bonds - others 9,500,569 - 9,500,569 10,782,176 - 10,782,176
276,882,576 144,788,434 421,671,010 281,269,133 112,179,374 393,448,507Held to maturity securitiesMarket Treasury Bills 26,968,740 - 26,968,740 33,700,017 - 33,700,017Pakistan Investment Bonds 289,522,875 - 289,522,875 220,168,425 - 220,168,425Government of Pakistan Eurobonds 6,897,076 - 6,897,076 7,670,645 - 7,670,645Government of Pakistan Sukuk 683,000 - 683,000 - - - Other Federal Government Securities - - - 5,391,120 - 5,391,120Term Finance Certificates 4,715,333 - 4,715,333 5,402,573 - 5,402,573Sukuks 9,024,950 - 9,024,950 4,234,531 - 4,234,531Participation Term Certificates 2,795 - 2,795 2,795 - 2,795Debentures 2,266 - 2,266 2,266 - 2,266Foreign bonds - sovereign 6,608,534 - 6,608,534 1,809,871 - 1,809,871Foreign bonds - others 357,609 - 357,609 227,179 - 227,179Recovery note 322,399 - 322,399 322,839 - 322,839CDC SAARC Fund 228 - 228 228 - 228
345,105,805 - 345,105,805 278,932,489 - 278,932,489AssociatesUnited Growth and Income Fund 419,308 - 419,308 419,308 - 419,308UBL Liquidity Plus Fund 10,079 - 10,079 10,079 - 10,079UBL Money Market Fund 9,850 - 9,850 9,850 - 9,850UBL Retirement Savings Fund 30,000 - 30,000 120,000 - 120,000UBL Principal Protected Fund - III - - - 200,000 - 200,000UBL Government Securities Fund 2,699,175 - 2,699,175 2,699,175 - 2,699,175UBL Gold Fund 100,000 - 100,000 100,000 - 100,000UBL Asset Allocation Fund 680,000 - 680,000 500,000 - 500,000Al Ameen Islamic Cash Fund 10,470 - 10,470 1,010,470 - 1,010,470Al Ameen Islamic Aggressive Income Fund 25,944 - 25,944 25,944 - 25,944Al Ameen Islamic Sovereign Fund 50,000 - 50,000 50,000 - 50,000Al Ameen Islamic Retirement Savings Fund - - - 90,000 - 90,000Al Ameen Islamic Principal Preservation Fund – III - - - 100,000 - 100,000Al Ameen Islamic Principal Preservation Fund – IV - - - 100,000 - 100,000Al Ameen Islamic Principal Preservation Fund – V - - - 100,000 - 100,000Al Ameen Islamic Asset Allocation Fund 100,000 - 100,000 100,000 - 100,000Al Ameen Islamic Financial Planning Fund 504,690 - 504,690 200,000 - 200,000UBL Insurers Limited 240,000 - 240,000 240,000 - 240,000Khushhali Bank Limited 832,485 - 832,485 832,485 - 832,485Oman United Exchange Company, Muscat 6,981 - 6,981 6,981 - 6,981DHA Cogen Limited 9.7 - - - - - -
5,718,982 - 5,718,982 6,914,292 - 6,914,292SubsidiariesUnited National Bank Limited (UBL UK) 2,855,223 - 2,855,223 2,855,223 - 2,855,223UBL (Switzerland) AG 589,837 - 589,837 589,837 - 589,837UBL Fund Managers Limited 100,000 - 100,000 100,000 - 100,000UBL Bank (Tanzania) Limited 1,322,014 - 1,322,014 1,322,014 - 1,322,014United Executors and Trustees Company Ltd. 30,100 - 30,100 30,100 - 30,100
4,897,174 - 4,897,174 4,897,174 - 4,897,174640,879,420 144,788,434 785,667,854 583,885,184 112,179,374 696,064,558
Provision for diminution in value of investments 9.3 (2,428,208) - (2,428,208) (2,132,692) - (2,132,692)
Investments - net of provision 638,451,212 144,788,434 783,239,646 581,752,492 112,179,374 693,931,866Surplus on revaluation of available for sale securities 20.2 13,646,446 9,647,338 23,293,784 14,338,740 11,238,285 25,577,025(Deficit) / surplus on revaluation of held for trading securities 9.4 (2,184) - (2,184) 9,202 - 9,202
Total investments 652,095,474 154,435,772 806,531,246 596,100,434 123,417,659 719,518,093
-------------------------------------------------- (Rupees in '000) --------------------------------------------------
2016 2015
18
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
9.2 Investments by segment
Federal Government SecuritiesMarket Treasury Bills 96,090,512 84,622,830 Pakistan Investment Bonds 570,620,782 486,913,891 Government of Pakistan Sukuk 7,916,271 9,909,514 Government of Pakistan Eurobonds 20,950,863 21,785,031 Other Federal Government Securities - 5,391,120
695,578,428 608,622,386
Foreign SecuritiesMarket Treasury Bills 12,050,010 13,775,897 Sovereign bonds 25,859,410 19,042,835 CDC SAARC Fund 228 228 Recovery note 322,399 322,839 Other bonds 9,858,178 11,009,355
48,090,225 44,151,154
Ordinary sharesListed companies 16,007,107 19,329,783 Unlisted companies 243,084 243,087
16,250,191 19,572,870
Preference shares 372,636 434,765
Term Finance Certificates Listed 1,179,803 1,180,236 Unlisted 4,091,814 5,593,499
5,271,617 6,773,735
Sukuks 9,024,950 4,234,531
Debentures 2,266 2,266
Participation Term Certificates 2,795 2,795
Investment in REIT 458,590 458,590
Investments in subsidiaries and associates 10,616,156 11,811,466
Total investments at cost 785,667,854 696,064,558
Provision for diminution in value of investments 9.3 (2,428,208) (2,132,692)
Investments - net of provision 783,239,646 693,931,866
Surplus on revaluation of available for sale securities 20.2 23,293,784 25,577,025 9.4 (2,184) 9,202
Total investments 806,531,246 719,518,093
------- (Rupees in '000) -------
(Deficit) / surplus on revaluation of held for trading securities
19
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015
9.3 Provision for diminution in value of investments
9.3.1 Opening balance 2,132,692 1,725,669 Exchange adjustments (1,263) 37,536
Charge / (reversals)Charge for the year 963,556 443,585 Reversals (71,872) (32,529)
891,684 411,056
Reversed on disposal (569,357) (41,569) Amounts written off (25,548) - Closing balance 2,428,208 2,132,692
9.3.2 Provision for diminution in value of investments by type
Available for sale securitiesOrdinary shares of listed companies 1,218,667 817,446 Ordinary shares of unlisted companies 137,129 137,129 Term Finance Certificates 97,616 97,616 Preference shares 335,934 343,512
1,789,346 1,395,703 Held to maturity securities
Term Finance Certificates 41,851 51,356 Sukuks 42,650 130,563 Foreign bonds 226,867 227,176 Recovery note 322,433 322,833 Participation Term Certificates 2,795 2,795 Debentures 2,266 2,266
638,862 736,989 2,428,208 2,132,692
9.3.3 Provision for diminution in value of investments by segment
Equity securitiesListed companies 1,218,667 817,446 Unlisted companies 137,129 137,129 Preference shares 335,934 343,512
1,691,730 1,298,087
Debt securitiesTerm Finance Certificates 139,467 148,972 Sukuks 42,650 130,563 Recovery note 322,433 322,833 Foreign bonds 226,867 227,176 Participation Term Certificates 2,795 2,795 Debentures 2,266 2,266
736,478 834,605 2,428,208 2,132,692
9.4 Unrealized (loss) / gain on revaluation of held for trading securities
Market Treasury Bills (1,962) (1,436) Pakistan Investment Bonds (222) 10,169 Ordinary shares of listed companies - 469
(2,184) 9,202
------- (Rupees in '000) -------
20
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
9.5
9.6
9.7
9.8
10. ADVANCES Note
2016 2015 2016 2015 2016 2015
Loans, cash credits,running finances, etc.
In Pakistan 317,697,928 287,342,709 29,717,889 32,823,235 347,415,817 320,165,944 Outside Pakistan 127,913,711 112,774,827 12,053,537 10,910,259 139,967,248 123,685,086
445,611,639 400,117,536 41,771,426 43,733,494 487,383,065 443,851,030
Islamic financings and related assets 7,277,360 6,990,193 94,614 166,307 7,371,974 7,156,500
Bills discounted and purchased
Payable in Pakistan 13,976,584 12,055,724 2,700,944 2,933,431 16,677,528 14,989,155 Payable outside Pakistan 39,203,743 31,035,225 - - 39,203,743 31,035,225
53,180,327 43,090,949 2,700,944 2,933,431 55,881,271 46,024,380 Advances - gross 506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910
Provision against advances 10.3- Specific - - (37,396,612) (37,536,034) (37,396,612) (37,536,034) - General (3,128,774) (4,081,996) - - (3,128,774) (4,081,996)
(3,128,774) (4,081,996) (37,396,612) (37,536,034) (40,525,386) (41,618,030)
Advances - net of provision 502,940,552 446,116,682 7,170,372 9,297,198 510,110,924 455,413,880
2016 2015 2016 2015 2016 2015
10.1 Particulars of advances - gross
10.1.1 In local currency 329,236,693 289,606,487 32,166,038 35,573,809 361,402,731 325,180,296 In foreign currencies 176,832,633 160,592,191 12,400,946 11,259,423 189,233,579 171,851,614
506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910
10.1.2 Short term 304,284,529 259,726,799 - - 304,284,529 259,726,799 Long term 201,784,797 190,471,879 44,566,984 46,833,232 246,351,781 237,305,111
506,069,326 450,198,678 44,566,984 46,833,232 550,636,310 497,031,910
Information relating to investments required to be disclosed as part of the financial statements under the SBP's BSDCircular No. 4 dated February 17, 2006, and details in respect of the quality of available for sale securities are disclosed inAnnexure 'A' which forms an integral part of these unconsolidated financial statements.
Total
Investments include securities which are held by the Bank to comply with the statutory liquidity requirements as set outunder Section 29 of the Banking Companies Ordinance, 1962.
Investments include Rs. 282.000 million (2015: Rs. 282.000 million) held by the SBP and National Bank of Pakistan aspledge against demand loan, TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank andRs. 5.000 million (2015: Rs. 5.000 million) held by the Controller of Military Accounts (CMA) under Regimental FundArrangements.
As a result of exercise of a pledge in 2013, the Bank holds 20.99% of the issued and paid up capital of DHA Cogen Limitedwithout any consideration having been paid. Consequently, DHA Cogen Limited is classified as an associated company.
Non-performingPerforming
Total
---------------------------------------------- (Rupees in '000) --------------------------------------------------------
---------------------------------------------- (Rupees in '000) --------------------------------------------------------
Performing Non-performing
21
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
10.2
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
Other Assets Especially
Mentioned * 126,711 - 126,711 3,576 - 3,576 3,576 - 3,576
Substandard 908,055 1,259,239 2,167,294 222,697 276,506 499,203 222,697 276,506 499,203
Doubtful 2,471,496 2,216,423 4,687,919 1,203,332 795,729 1,999,061 1,203,332 795,729 1,999,061
Loss 29,007,185 8,577,875 37,585,060 27,881,140 7,013,632 34,894,772 27,881,140 7,013,632 34,894,772
32,513,447 12,053,537 44,566,984 29,310,745 8,085,867 37,396,612 29,310,745 8,085,867 37,396,612
94,614 -
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
Other Assets Especially
Mentioned * 38,294 - 38,294 427 - 427 427 - 427
Substandard 3,990,022 833,654 4,823,676 322,240 86,771 409,011 322,240 86,771 409,011
Doubtful 1,145,884 2,945,603 4,091,487 568,637 1,298,566 1,867,203 568,637 1,298,566 1,867,203
Loss 30,748,773 7,131,002 37,879,775 29,925,554 5,333,839 35,259,393 29,925,554 5,333,839 35,259,393
35,922,973 10,910,259 46,833,232 30,816,858 6,719,176 37,536,034 30,816,858 6,719,176 37,536,034
* The Other Assets Especially Mentioned category pertains to agricultural finance and advances to small enterprises.
10.3 Particulars of provision against advances
Note Specific General Total Specific General Total
Opening balance 37,536,034 4,081,996 41,618,030 43,761,929 2,022,770 45,784,699
Exchange adjustments 12,926 (107,002) (94,076) 263,177 96,249 359,426
Charge / (reversals)
Charge for the year 5,687,885 - 5,687,885 3,000,046 1,963,230 4,963,276
Reversals 10.3.3 (4,336,764) (846,220) (5,182,984) (1,904,402) (253) (1,904,655)
1,351,121 (846,220) 504,901 1,095,644 1,962,977 3,058,621
Transfers in - net 515,625 - 515,625 264,722 - 264,722
Amounts written off 10.4 (2,019,094) - (2,019,094) (7,849,438) - (7,849,438)
Closing balance 37,396,612 3,128,774 40,525,386 37,536,034 4,081,996 41,618,030
10.3.1
10.3.2
10.3.3
10.3.4 Particulars of provision against advances
Specific General Total Specific General Total
In local currency 28,963,336 257,162 29,220,498 30,467,694 1,009,066 31,476,760
In foreign currencies 8,433,276 2,871,612 11,304,888 7,068,340 3,072,930 10,141,270
37,396,612 3,128,774 40,525,386 37,536,034 4,081,996 41,618,030
------------------------------------------------ (Rupees in '000) ------------------------------------------------
Provision required
------------------------------------------------ (Rupees in '000) ------------------------------------------------
2016
------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------
The Bank has availed the benefit of Forced Sale Value (FSV) of certain mortgaged properties held as collateral against non-performing advances as allowed under BSD Circular 1 of 2011. Had the benefit under the said circular not been taken bythe Bank, the specific provision against non-performing advances would have been higher by Rs. 56.375 million (2015: Rs.96.346 million). The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
2015
Provision held
2015
Category of
classification
2016
Classified advances
General provision represents provision amounting to Rs. 218.074 million (2015: Rs. 239.461 million) against consumerfinance portfolio and Rs. 39.088 million (2015: Rs. 37.942 million) against advances to small enterprises as required by thePrudential Regulations issued by the SBP and Rs. 2,382.615 million (2015: Rs. 2,531.266 million) pertaining to overseasadvances to meet the requirements of the regulatory authorities of the respective countries in which the overseas branchesoperate. General provision also includes Rs. 488.997 million (2015: Rs 541.664 million) which is based on managementestimates and regulatory instructions. Further, the Bank carried provision of nil (2015: Rs. 731.663 million) as a matter ofprudence given the prevailing economic environment.
This includes provision reversals amounting to Rs. 444.034 million (2015: Rs. 216.777 million) as a result of settlementthrough debt asset swap arrangements with various customers.
Advances include Rs. 44,566.984 million (2015: Rs. 46,833.232 million) which have been placed under non-performingstatus as detailed below:
Provision required
2015
Provision heldCategory of
classification
2016
Classified advances
------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------
22
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
10.4 Particulars of write-offs
10.4.1 Against provisions 10.3 2,019,094 7,849,438 Directly charged to profit and loss account 97,781 161,229
2,116,875 8,010,667
10.4.2 Write-offs of Rs.500,000 and above 10.5 1,901,454 5,470,304 Write-offs below Rs.500,000 215,421 2,540,363
2,116,875 8,010,667
10.5 Details of loan write-offs of Rs.500,000 and above
Note 2016 2015
10.6 Particulars of loans and advances to executives, Directors,associated companies etc.
Balance at the beginning of the year 13,040,213 14,198,303
Loans granted during the year 57,892,210 45,474,013 Repayments made during the year (48,632,480) (46,632,103)
9,259,730 (1,158,090) Balance at the end of the year 22,299,943 13,040,213
11. OPERATING FIXED ASSETS
Capital work-in-progress 11.1 2,924,670 4,059,879 Property and equipment 11.2 31,679,912 26,581,153 Intangible assets 11.3 977,176 989,342
35,581,758 31,630,374
11.1 Capital work-in-progress
Civil works 2,454,913 3,610,623 Equipment 421,205 372,154 Software 48,380 74,530 Advances to suppliers and contractors 172 2,572
2,924,670 4,059,879
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of writtenoff loans or any other financial relief of five hundred thousand rupees or above allowed to a person during the year endedDecember 31, 2016 is given in Annexure 'B' to the unconsolidated financial statements. This includes amounts charged offwithout prejudice to the Bank's right to recovery.
------- (Rupees in '000) -------
------- (Rupees in '000) -------
23
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
11.2 Property and equipment
Cost / Revaluation Accumulated Depreciation
Owned
Freehold land 5,062,242 - - 5,025,317 - - - - 5,025,317 -
(36,925) -
Leasehold land 15,675,141 565,799 (2) 16,240,938 1,339 - (2) 1,337 16,239,601 -
- -
Buildings on 862,552 - - 862,552 43,018 43,128 - 86,146 776,406 5
freehold land - -
Buildings on 1,505,242 3,360,721 (15) 4,865,948 69,121 77,254 (5) 146,370 4,719,578 2.5 - 5
leasehold land - -
Leasehold 2,893,387 428,113 1,755 3,323,255 1,727,172 289,543 (2,454) 2,014,261 1,308,994 10 - 20
Improvements - -
Furniture and 1,327,593 244,206 (3,941) 1,558,198 929,834 97,006 (3,801) 1,013,634 544,564 10 - 25
fixtures (9,660) (9,405)
Electrical, office 8,684,198 2,048,837 (19,987) 10,644,148 6,857,266 1,025,849 3,490 7,818,559 2,825,589 10 - 33.33
and computer (68,900) (68,046)
equipment
Vehicles 498,057 122,615 (1,908) 540,563 299,509 74,327 (2,960) 300,700 239,863 20 - 25
(78,201) (70,176)
2016 36,508,412 6,770,291 (24,098) 43,060,919 9,927,259 1,607,107 (5,732) 11,381,007 31,679,912
(193,686) (147,627)
Cost / Revaluation Accumulated Depreciation
Owned
Freehold land 5,062,242 - - 5,062,242 - - - - 5,062,242 -
- -
Leasehold land 14,538,651 1,136,427 63 15,675,141 1,285 - 54 1,339 15,673,802 -
- -
Buildings on 849,365 13,187 - 862,552 - 43,018 - 43,018 819,534 5
freehold land - -
Buildings on 1,267,097 237,670 475 1,505,242 2,612 66,387 122 69,121 1,436,121 5
leasehold land - -
Leasehold 2,685,375 211,699 27,809 2,893,387 1,456,863 270,629 22,819 1,727,172 1,166,215 10 - 20
Improvements (31,496) (23,139)
Furniture and 1,250,714 71,685 9,731 1,327,593 830,523 95,383 8,286 929,834 397,759 10 - 25
fixtures (4,537) (4,358)
Electrical, office 7,747,921 956,948 70,498 8,684,198 5,898,079 979,157 60,528 6,857,266 1,826,932 20 - 33.33
and computer (91,169) (80,498)
equipment
Vehicles 439,260 101,954 2,916 498,057 264,248 67,300 3,178 299,509 198,548 20 - 25
(46,073) (35,217)
2015 33,840,625 2,729,570 111,492 36,508,412 8,453,610 1,521,874 94,987 9,927,259 26,581,153
(173,275) (143,212)
Annual
rate of
deprec-
iation %
Net book value
at December 31,
2015
Annual
rate of
deprec-
iation %
At January 1, 2015Additions /
(deletions)
Exchange /
Other
adjustments
At December
31, 2015
At January 1,
2015
Charge for the
year /
(depreciation
on deletions)
Exchange /
Other
adjustments
At December
31, 2015
2016
2015
---------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
---------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------
At January 1, 2016Additions /
(deletions)
Exchange /
Other
adjustments
At December
31, 2016
At January 1,
2016
Charge for the
year /
(depreciation
on deletions)
Exchange /
Other
adjustments
At December
31, 2016
Net book value
at December 31,
2016
24
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
11.3 Intangible assets
Software 3,724,219 292,320 (2,072) 4,011,668 2,734,877 314,870 (13,327) 3,034,492 977,176 10 - 33.33
(2,799) (1,928)
Software 3,571,906 123,722 28,606 3,724,219 2,336,466 386,494 11,932 2,734,877 989,342 10 - 33.33
(15) (15)
11.4 Revaluation of properties
2016 2015
Freehold land 745,657 782,581 Leasehold land 1,898,434 1,332,635 Buildings on freehold land 184,043 196,817 Buildings on leasehold land 3,816,412 485,725
11.5 Carrying amount of temporarily idle property of the Bank 81,790 81,790
11.6 The cost of fully depreciated assets still in use
Furniture and fixtures 356,574 291,812 Electrical, office and computer equipment 6,715,554 4,153,542 Vehicles 137,171 96,519 Leasehold improvements 256,080 113,346
7,465,379 4,655,219
11.7 Details of disposal of operating fixed assets
The properties of the Bank were last revalued by independent professional valuers as at December 31, 2014. Therevaluation was carried out by M/s. Pirsons Chemicals Engineering (Private) Limited, M/s. Sadruddin Associates, M/s.Engineering Pakistan International (Private) Limited and M/s. Indus Surveyors (Private) Limited on the basis ofprofessional assessment of present market values and resulted in an increase in surplus by Rs. 5,146.820 million. Thetotal surplus arising against revaluation of fixed assets as at December 31, 2016 amounts to Rs. 20,116.356 million. Hadthere been no revaluation, the carrying amount of the revalued assets at December 31 would have been as follows:
The information relating to operating fixed assets disposed off during the year is given in Annexure 'C' and is an integralpart of these unconsolidated financial statements.
------- (Rupees in '000) -------
---------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------
Cost Accumulated Amortization
2016
Cost Accumulated Amortization
2015
---------------------------------------------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------------------------------------------
At January
1, 2016
Additions /
(deletions)
Exchange /
other
adjustments
At
December
31, 2016
Annual rate of
amortisation %At January
1, 2016
Charge for
the year /
(reversal on
deletion)
Exchange /
other
adjustments
At December
31, 2016
Net book value
at December 31,
2016
Net book value
at December 31,
2015
Annual rate of
amortisation %At January
1, 2015
Additions /
(deletions)
Exchange /
other
adjustments
At December
31, 2015
At January
1, 2015
Charge for
the year /
(reversal on
deletion)
Exchange /
other
adjustments
At December
31, 2015
25
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
12. OTHER ASSETS
Income / mark-up accrued in local currency 23,806,234 26,247,445 Income / mark-up accrued in foreign currency 5,724,754 5,079,320
29,530,988 31,326,765
Advance taxation - net of provision for taxation 12.1 10,781,770 6,271,969 Receivable from staff retirement fund 376,634 211,687 Receivable on account of encashment of savings certificates 9,425 - Receivable in respect of derivative transactions 18,033 18,033 Receivable from other banks against telegraphic transfers and demand drafts 758,923 470,784 Unrealized gain on forward foreign exchange contracts 564,223 543,988 Rebate receivable - net 893,968 904,140 Unrealized gain on derivative financial instruments 18.3.1 & 22.2 204,498 312,868 Suspense accounts 409,513 360,637 Stationery and stamps on hand 117,189 196,170 Non banking assets acquired in satisfaction of claims 2,343,457 2,289,115 Advances, deposits, advance rent and other prepayments 1,024,436 862,720 Others 2,516,480 2,179,535
49,549,537 45,948,411
Provision held against other assets 12.2 (4,818,584) (4,825,077) Other assets - net of provisions 44,730,953 41,123,334
12.1
The tax authorities have also carried out monitoring for Federal Excise Duty, Sales tax and withholding taxes coveringperiod from year ended 2007 to 2014. Consequently various addbacks and demands were raised creating a total demandof Rs. 1,245 million. The Bank has filed appeals against all such demands and is confident that these would be decided inthe favor of the Bank.
The tax returns for overseas branches have been filed upto the year ended December 31, 2015 under the provisions of thelaws prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.
------- (Rupees in '000) -------
The Income Tax returns of the Bank have been filed up to the tax year 2016 (accounting year ended December 31, 2015)and were deemed to be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance) unless amended bythe Commissioner of Inland Revenue.
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2016, and created additionaltax demands of Rs.13,723 million (including disallowances of provisions made prior to Seventh Schedule), which have been fully paid as required under the law. The Bank has filed appeals before the various appellate forums against theseamendments. Where the appellate authorities have allowed relief on certain issues, the assessing authorities have filedappeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank has filed appealsbefore higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of theBank.
Under the Seventh Schedule to the Ordinance, banks are allowed to claim provisions against advances up to 5% of totaladvances for consumer and small and medium enterprises and up to 1% of total advances for remaining advances.Amounts above these limits are allowed to be claimed in future years. The Bank has booked a deferred tax asset of nil(December 31, 2015: Rs.1,140 million) in respect of provisions in excess of the above mentioned limits.
The tax returns for Azad Kashmir (AK) Branches have been filed upto the tax year 2016 (financial year 2015) under theprovisions of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreementbetween banks and the Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessmentorders under the law.
26
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 201512.2 Provision against other assets
Opening balance 4,825,077 4,469,635 Exchange adjustments (4,888) 123,800
Charge / (reversals)Charge for the year 161,419 61,934 Reversals (17,511) (71,183)
28 143,908 (9,249) Transfers in - net 817,630 546,615 Amounts written off (963,143) (305,724) Closing balance 4,818,584 4,825,077
13. CONTINGENT ASSETS
There were no contingent assets as at the statement of financial position date.
14. BILLS PAYABLE
In Pakistan 11,041,529 10,846,814 Outside Pakistan 714,893 2,544,925
11,756,422 13,391,739
15. BORROWINGS
In Pakistan 181,622,033 150,679,861 Outside Pakistan 19,927,586 12,452,086
201,549,619 163,131,947
15.1 Particulars of borrowings
In local currency 181,321,268 145,733,598 In foreign currencies 20,228,351 17,398,349
201,549,619 163,131,947
15.2 Details of borrowings
SecuredBorrowings from the State Bank of Pakistan under:
Export refinance scheme 15.3 14,702,567 14,426,586 Refinance facility for modernization of SME 15.4 19,550 29,961 Long term financing facility 15.5 11,955,687 7,174,502 Long term financing under export oriented projects 15.6 - 31,355
26,677,804 21,662,404 Repurchase agreement borrowings 15.7 153,643,464 122,771,194
180,321,268 144,433,598 Unsecured Call borrowings 15.8 14,188,048 4,180,379 Overdrawn nostro accounts 300,765 1,280,324 Other borrowings 15.9 6,739,538 13,237,646
21,228,351 18,698,349
201,549,619 163,131,947
------- (Rupees in '000) -------
27
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
15.3
15.4
15.5
15.6
15.7
15.8
15.9
2016 201516. DEPOSITS AND OTHER ACCOUNTS
CustomersFixed deposits 283,620,672 261,180,733 Savings deposits 370,630,580 357,773,892 Sundry deposits 22,515,064 8,228,428 Margin deposits 4,226,027 5,599,068 Current accounts - remunerative 10,398,987 8,892,225 Current accounts - non-remunerative 420,335,909 358,292,967
1,111,727,239 999,967,313
Financial InstitutionsRemunerative deposits 57,467,411 38,739,562 Non-remunerative deposits 10,692,398 12,528,295
68,159,809 51,267,857 1,179,887,048 1,051,235,170
16.1 Particulars of deposits and other accounts
In local currency 844,165,517 784,338,453 In foreign currencies 335,721,531 266,896,717
1,179,887,048 1,051,235,170
The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the terms of theagreement, the Bank has granted the SBP the right to recover the outstanding amounts from the Bank at the date ofmaturity of the finances by directly debiting the Bank's current account maintained with the SBP. These borrowings arerepayable within six months, latest by June 2017 . These carry mark-up at a rate of 3.0% per annum (2015: 3.50% perannum).
These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and MediumEnterprises by providing financing facilities for setting up of new units, purchase of new plant and machinery for Balancing,Modernization and Replacement (BMR) of existing units and financing for import / local purchase of new generators upto amaximum capacity of 500 KVA. These borrowings are repayable within a period ranging from 3 years to 10 years, latest byOctober 2019 and carry mark-up at a rate of 6.25% per annum (2015: 6.25% per annum).
------- (Rupees in '000) -------
These borrowings have been obtained from the SBP for providing financing facilities for import of machinery, plant,equipment and accessories thereof by export oriented units.
These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of newtechnologies and modernization of their plant and machinery. These borrowings are repayable within a period ranging from3 years to 10 years, latest by December 2026. These carry mark-up at rates ranging from 2.00% to 10.90 % per annum(2015: 2.00% to 10.10% per annum).
These repurchase agreement borrowings are secured against Pakistan Investment Bonds and Treasury Bills and carrymark-up at rates ranging from 5.50% to 5.90% per annum (2015: 6.00% to 6.50% per annum). These borrowings arerepayable latest by January 2017. The carrying value of securities given as collateral against these borrowings is given innote 9.1.
These are unsecured borrowings carrying mark-up at rates ranging from 0.25% to 5.85% per annum (2015: 0.47% to6.25% per annum), and are repayable latest by April 2017.
These borrowings carry mark-up at rates ranging from 2.00% to 4.74% per annum (2015: 0.47% to 4.55% per annum), andare repayable latest by September 2017.
28
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
17. DEFERRED TAX LIABILITY - NET
Deferred tax liability - net 17.1 4,691,544 4,186,406
17.1 Movement in temporary differences during the year
2016
Deductible temporary differences on- Workers' Welfare Fund 529,704 89,081 - 618,785 - Provision against off-balance sheet items, post retirement employee benefits, advances and others 5,108,105 (1,154,539) 41,543 3,995,109
5,637,809 (1,065,458) 41,543 4,613,894
Taxable temporary differences on- Surplus on revaluation of fixed assets / non-
banking assets (550,593) 27,126 (59,422) (582,889) - Surplus on revaluation of investments (8,951,959) - 799,135 (8,152,824) - Accelerated tax depreciation (321,663) (248,062) - (569,725)
(9,824,215) (220,936) 739,713 (9,305,438)
(4,186,406) (1,286,394) 781,256 (4,691,544)
2015
Deductible temporary differences on- Workers' Welfare Fund 233,777 295,927 - 529,704 - Provision against off-balance sheet items, post retirement employee benefits, advances and others 4,931,648 (43,707) 220,164 5,108,105
5,165,425 252,220 220,164 5,637,809
Taxable temporary differences on- Surplus on revaluation of fixed assets / non-
banking assets (577,601) 27,129 (121) (550,593) - Surplus on revaluation of investments (6,048,898) - (2,903,061) (8,951,959) - Accelerated tax depreciation (438,271) 116,608 - (321,663)
(7,064,770) 143,737 (2,903,182) (9,824,215)
(1,899,345) 395,957 (2,683,018) (4,186,406)
At January 1, 2015
------------------------------ (Rupees in '000) ------------------------------
Others At December 31, 2015
------- (Rupees in '000) -------
At January 1, 2016
Recognised in profit and loss account
Others At December 31, 2016
------------------------------ (Rupees in '000) ------------------------------
Recognised in profit and loss account
29
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
18. OTHER LIABILITIES
Mark-up / return / interest payable in local currency 11,559,480 10,718,527 Mark-up / return / interest payable in foreign currency 1,378,004 709,235
12,937,484 11,427,762
Accrued expenses 4,590,522 5,295,097 Branch adjustment account 1,366,415 283,016 Payable against purchase of securities 6 325,854 Payable under severance scheme 32,563 32,563 Deferred income 658,882 821,882 Unearned commission and income on bills discounted 754,235 846,008 Provision against off - balance sheet obligations 18.1 676,021 657,129 Unrealized loss on forward foreign exchange contracts 941,293 624,592 Payable to staff retirement fund 35.4 - 149,951 Deferred liabilities 18.2 3,401,628 3,113,900 Unrealized loss on derivative financial instruments 18.3.1 & 22.2 2,630 75,254 Workers' Welfare Fund payable 1,767,957 1,513,438 Insurance payable against consumer assets 241,621 218,634 Dividend payable 196,626 538,966 Others 311,646 646,060
27,879,529 26,570,106
18.1 Provision against off - balance sheet obligations
Opening balance 657,129 649,102 Exchange adjustments (8,189) 1,748 Charge during the year 28 27,081 6,279
676,021 657,129
18.2 Deferred liabilities
Provision for post retirement medical benefits 35.4 1,328,199 1,188,710 Provision for compensated absences 1,438,941 1,354,253 Deferred liability for outsourced services 181,344 133,592 Deferred liability - overseas 453,144 437,345
3,401,628 3,113,900
18.3 Unrealized gain / (loss) on derivative financial instruments - net
Note2016 2015 2016 2015
- Interest rate swaps 6,986,094 10,462,192 197,083 235,546 - Cross currency swaps 522,051 508,129 5,459 (5,459) - FX options 426,162 740,146 - - - Forward purchase contracts of government securities 4,998,400 - (2,391) - - Forward sale contracts of government securities 3,553,866 10,483,779 1,717 7,527
18.3.1 16,486,573 22,194,246 201,868 237,614
Unrealized gain / (loss)Contract / notional amount
-------------------------- (Rupees in '000) --------------------------
------- (Rupees in '000) -------
30
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
18.3.1 Unrealized gain / (loss) on derivative financial instruments - net
Unrealized gain on derivative financial instruments 12 204,498 312,868 Unrealized loss on derivative financial instruments 18 (2,630) (75,254)
22.2 201,868 237,614 19. SHARE CAPITAL
19.1 Authorized Capital
2016 2015
2,000,000,000 2,000,000,000 Ordinary shares of Rs.10 each 20,000,000 20,000,000
19.2 Issued, subscribed and paid-up capital
2016 2015
Fully paid-up ordinary shares of Rs.10 each518,000,000 518,000,000 Issued for cash 5,180,000 5,180,000 706,179,687 706,179,687 Issued as bonus shares 7,061,798 7,061,798
1,224,179,687 1,224,179,687 12,241,798 12,241,798
19.3
19.4 Major shareholders (holding more than 5% of total paid-up capital)
Number of Percentage of Number of Percentage ofName of shareholder shares held shareholding shares held shareholding
Bestway (Holdings) Limited 631,728,895 51.60% 631,728,895 51.60%Bestway Cement Limited 93,649,774 7.65% 93,649,744 7.65%
2016 201519.5 Shares of the Bank held by its associates
UBL Asset Allocation Fund 114,200 115,000 UBL Stock Advantage Fund 1,153,000 490,300
1,267,200 605,300
------- (Rupees in '000) -------
------- (Number of shares) -------
(Number of shares)
(Number of shares)
2015
In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock ExchangeProfessional Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary sharesissued by the Bank. The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance onRule 144A under the U.S Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rankpari passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no votingrights or other direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the termsand restrictions set out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which theGDRs were issued may be withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders willrank pari passu with other ordinary shareholders in respect of voting powers. As at December 31, 2016, 1,845,734 (2015:1,255,264) GDRs, representing 7,382,938 (2015: 5,021,054) shares were in issue.
2016
As at December 31, 2016, Bestway Group (Bestway) held 61.46% (2015: 61.46%) shareholding (including GDRs) of theBank.
31
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 2015
20. SURPLUS ON REVALUATION OF ASSETS - NET OF DEFERRED TAX
Surplus arising on revaluation of assets - net of tax
Fixed assets / non-banking assets 20.1 19,703,328 19,643,348 Available for sale securities 20.2 15,140,960 16,625,066
34,844,288 36,268,414 20.1 Surplus on revaluation of fixed assets / non-banking assets
Surplus on revaluation of fixed assets / non-banking assets as at January 1 20,193,941 20,271,107
Revaluation of non-banking assets during the year 169,861 - Exchange adjustments (82) 346 Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax (50,377) (50,383) Related deferred tax liability on incremental depreciation charged
during the year 17.1 (27,126) (27,129) 92,276 (77,166)
20,286,217 20,193,941 Less: Related deferred tax liability on
Revaluation as at January 1 550,593 577,601 Revaluation of non-banking assets during the year 59,451 - Exchange adjustments (29) 121 Incremental depreciation charged on related assets (27,126) (27,129)
17.1 582,889 550,593
19,703,328 19,643,348 20.2 Surplus / (deficit) on revaluation of available for sale securities
Market Treasury Bills (9,729) 9,099 Pakistan Investment Bonds 14,625,102 19,041,613 Listed shares 7,432,229 6,090,141 REIT Investment (5,420) (11,256) Term Finance Certificates, Sukuks, other bonds etc. 104,054 18,406 Foreign bonds 1,147,548 429,022
23,293,784 25,577,025 Related deferred tax liability 17.1 (8,152,824) (8,951,959)
15,140,960 16,625,066 21. CONTINGENCIES AND COMMITMENTS
21.1 Direct credit substitutes
Contingent liabilities in respect of guarantees given favouring
Government 10,418,980 11,938,559 Banking companies and other financial institutions 1,277,955 2,418,267 Others 6,148,339 2,650,778
17,845,274 17,007,604 21.2 Transaction-related contingent liabilities
Contingent liabilities in respect of performance bonds, bid bonds, warranties, etc. given favouring
Government 114,871,452 109,734,826 Banking companies and other financial institutions 7,068,771 7,892,097 Others 38,178,662 29,405,978
160,118,885 147,032,901
------- (Rupees in '000) -------
32
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2016 201521.3 Trade-related contingent liabilities
Contingent liabilities in respect of letters of credit opened favouring
Government 63,290,127 52,048,254 Others 104,922,885 87,060,071
168,213,012 139,108,325 21.4 Other contingencies
21.4.1 Claims against the Bank not acknowledged as debts 12,381,804 12,302,822
21.4.2
21.4.3
21.5 Commitments to extend credit
2016 201521.6 Commitments in respect of forward foreign exchange contracts
Purchase 186,835,721 211,486,719
Sale 162,987,703 197,523,023
21.7 Commitments in respect of derivatives
Interest rate swaps 6,986,094 10,462,192 Cross currency swaps 522,051 508,129 FX options - purchased 213,081 370,073 FX options - sold 213,081 370,073 Forward purchase of government securities 4,998,400 - Forward sale of government securities 3,553,866 10,483,779
21.8 Commitments in respect of capital expenditure 2,755,836 2,411,095
21.9 For contingencies relating to taxation refer note 12.1
------- (Rupees in '000) -------
The Bank makes commitments to extend credit in the normal course of its business but these being revocablecommitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
------- (Rupees in '000) -------
These mainly represent counter claims filed by the borrowers for restricting the Bank from disposal of assets (such asmortgaged / pledged assets kept as security).
Based on legal advice and / or internal assessments, management is confident that the matters will be decided in theBank's favour and the possibility of any outcome against the Bank is remote and accordingly no provision has been madein these financial statements.
During the period penalties amounting to Rs. 4.058 billion have been levied by the FE Adjudication Court of the State Bankof Pakistan relating to alleged contraventions of the requirements of foreign exchange regulations with respect to issuanceand certification of E-Forms by the Bank to certain customers (Exporters) who failed to submit the export documentstheregainst, consequently Foreign Exchange on account of Export Proceeds have not been repatriated. The Bankmaintains that it fully discharged its liability, in accordance with the law and has filed a civil suit in the High Court of Sindhchallenging the levy of the penalty. The High Court has granted a stay on action being taken against the Bank. Themanagement, based on the advice from legal counsel, is confident that the view of the Bank will prevail and the Bank willnot be exposed to any loss on this account.
United Bank Limited Yemen (UBL) issued two Standby Letters of Credit (SBLCs) for USD 12 million (Rs. 1,255.194 million)and USD 13 million (Rs. 1,359.793 million) in favor of Ministry of Oil and Minerals, Yemen (MOM) against the counterSBLCs of a foreign bank. In March 2015, counter party to performance agreement notified MOM of suspension of SBLCsbecause of force majeure. In September 2015, MOM filed a law suit against UBL at the Preliminary Commercial Court inSana’a claiming the payment of both SBLCs for the sum of USD 25 million (Rs. 2,614.988 million).
UBL management is pursuing the matter in the court in Yemen which was adjourned in last few hearings due to non-appearance of legal counsel of MOM and non-submission of responses by the MOM. The case is still in court schedulehowever no summon is received for next hearing.
Based on the legal advice of the Bank's legal counsel in Yemen and in view of facts surrounding the matter, managementis of the view that it is unlikely that there will be any financial impact on the Bank.
33
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
22. DERIVATIVE INSTRUMENTS
With regard to derivatives, the RMC is authorized to:
-
- Review the Derivatives Business Policy and recommend approval to the BRCC / BoD.
- Review and approve derivatives product programs.
- Authorize changes in procedures and processes regarding derivatives and structured products.
Derivatives risk management
Credit risk
Market risk
Liquidity risk
Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an adverseimpact on the Bank’s profitability. Credit risk associated with derivatives transactions is categorized into settlement risk andpre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit Committee. The creditexposure of each counterparty is estimated and monitored against approved counterparty limits by TMO on a daily basis.
The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional demand, andno perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and sensitivitylimits, and can also hedge its risk by taking on and off balance sheet positions in the interbank market, where available.
The Bank, as a policy, hedges back-to-back all Options transactions. In addition, the Bank does not carry any exchangerisk on its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage the interest raterisk of Interest Rate Derivatives, the Bank has implemented various limits which are monitored and reported by TMO on adaily basis.
There are a number of risks undertaken by the Bank, which need to be monitored and assessed.
Review the derivatives business with reference to market risk exposure and assign various limits in accordance withthe risk appetite of the Bank.
Overall responsibility for derivatives trading activity lies with the Treasury and Capital Markets Group. Measurement andmonitoring of market and credit risk exposure and limits and its reporting to senior management and the BoD is done byTreasury Middle Office (TMO), which also coordinates with the business regarding approvals for derivatives risk limits.Treasury Operations records derivatives activity in the Bank’s books, and handles its reporting to the SBP.
Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying assetsor indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives also includestructured financial products that have one or more of the characteristics of forwards, futures, swaps and options.
The Bank, as an Authorized Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and offersa wide variety of derivatives products covering both hedging and market making to satisfy customers’ needs. Whererequired, specific approval is sought from the SBP for each transaction.
The authority for approving policies lies with the Board of Directors (BoD) and the Board Risk and Compliance Committee(BRCC). The Risk Management Committee (RMC) is responsible for ensuring compliance with these policies.
34
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Operational risk
22.1 Product analysis
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
With banks for
Hedging 2 669,047 - - 4 213,081 - - - - 882,128
Market making 1 34,866 1 522,051 - - 1 4,998,400 2 3,553,866 9,109,183
3 703,913 1 522,051 4 213,081 1 4,998,400 2 3,553,866 9,991,311
With other entities
Market making 5 6,282,181 - - 4 213,081 - - - - 6,495,262
Total
Hedging 2 669,047 - - 4 213,081 - - - - 882,128
Market making 6 6,317,047 1 522,051 4 213,081 1 4,998,400 2 3,553,866 15,604,445
8 6,986,094 1 522,051 8 426,162 1 4,998,400 2 3,553,866 16,486,573
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
(Rupees in
'000)
With banks for
Hedging 3 1,432,971 - - 9 370,073 - - - - 1,803,044
Market making 1 104,741 1 508,129 - - - - 4 10,483,779 11,096,649
4 1,537,712 1 508,129 9 370,073 - - 4 10,483,779 12,899,693
With other entities
Market making 5 8,924,480 - - 9 370,073 - - - - 9,294,553
Total
Hedging 3 1,432,971 - - 9 370,073 - - - - 1,803,044
Market making 6 9,029,221 1 508,129 9 370,073 - - 4 10,483,779 20,391,202
9 10,462,192 1 508,129 18 740,146 - - 4 10,483,779 22,194,246
Interest rate swaps Cross currency swaps FX options
Forward purchase
contracts of
government securities
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
Number of
contracts
2016
2015
Total
Notional
Interest rate swaps Cross currency swaps FX options
Forward purchase
contracts of
government securities
Forward sale contracts
of government
securities
Notional
principal
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
The staff involved in the trading, settlement and risk management of derivatives is carefully trained to deal with thecomplexities involved in the process. Adequate systems and controls are in place to carry out derivatives transactionssmoothly. Each transaction is processed in accordance with the product program or a transaction memo, which containsdetailed guidance on the accounting and operational aspects of the transaction to further mitigate operational risk. Inaddition, TMO and the Compliance and Control Department are assigned the responsibility of monitoring any deviationfrom policies and procedures. The Bank’s Audit and Inspection Group also reviews this function, with a regular review ofsystems, transactional processes, accounting practices and end-user roles and responsibilities.
The Bank uses FX and Derivatives module of Treasury System which provides an end-to-end valuation solution, supportsthe routine transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and sensitivity analysis.
TMO produces various reports on a periodic basis which are reviewed by senior management. These reports providedetails of the derivatives business profile such as outstanding positions, profitability, risk exposures and the status ofcompliance with limits.
Forward sale contracts
of government
securitiesTotal
Notional
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
Number of
contracts
Notional
principal
35
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
22.2 Maturity analysis of derivatives
(Loss) Gain Net
Upto 1 month 7 8,765,347 (2,391) 1,717 (674) 1 to 3 months 5 735,133 - 5,459 5,459 3 to 6 months 2 69,732 (239) 251 12 6 months to 1 year - - - - - 1 to 2 years 3 648,000 - 46,347 46,347 2 to 3 Years 3 6,268,361 150,724 150,724 3 to 5 years - - - - - 5 to 10 years - - - - - Above 10 years - - - - -
20 16,486,573 (2,630) 204,498 201,868
(Loss) Gain Net
Upto 1 month 14 11,084,676 - 7,527 7,527 1 to 3 months 8 139,248 - - - 3 to 6 months - - - - - 6 months to 1 year - - - - - 1 to 2 years 3 717,612 (7,130) 1,745 (5,385) 2 to 3 years 4 1,550,250 (47,479) 111,247 63,768 3 to 5 years 3 8,702,460 (20,645) 192,349 171,704 5 to 10 years - - - - - Above 10 years - - - - -
32 22,194,246 (75,254) 312,868 237,614
2016 201523. MARK-UP / RETURN / INTEREST EARNED
On loans and advances to customers 30,394,552 33,802,408
On lendings to financial institutionsCall money lending 172,303 92,239 Securities purchased under resale agreements 138,814 381,388 Bai Muajjal with other financial institutions 47,028 - Other lendings to financial institutions 900,222 706,021
1,258,367 1,179,648
On investments inHeld for trading securities 1,073,887 1,337,918 Available for sale securities 35,049,733 34,014,329 Held to maturity securities 30,182,480 23,832,460
66,306,100 59,184,707 On deposits with financial institutions 260,195 186,168
98,219,214 94,352,931 24. MARK-UP / RETURN / INTEREST EXPENSED
On deposits 29,136,354 29,704,829 On securities sold under repurchase agreements 10,197,470 6,110,958 On other short term borrowings 1,443,153 2,205,735 On long term borrowings 399,709 489,639
41,176,686 38,511,161
2016
No. of contracts
Notional principal
Unrealized
------- (Rupees in '000) -------
------------------------------------- (Rupees in '000) ----------------------------------
------------------------------------- (Rupees in '000) ----------------------------------
UnrealizedRemaining maturity
Remaining maturity
No. of contracts
Notional principal
2015
36
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 201525. GAIN ON SALE OF SECURITIES - NET
Federal government securities Market Treasury Bills 11,461 217,680 Pakistan Investment Bonds 3,507,471 1,269,086
3,518,932 1,486,766 Ordinary shares of listed companies 1,054,440 790,743 Other securities 791,091 950,812
5,364,463 3,228,321 26. OTHER INCOME
Charges recovered 450,214 376,582 Rent on properties 211,306 183,924 Income from dealing in derivatives 93,351 287,860 Gain on sale of operating fixed assets - net 44,273 19,023 Gain on sale of Ijarah assets 44,685 863 Income from sale of non-banking asset 26.1 20,574 - Gain on trading liabilities - net 95,701 202,192
960,104 1,070,444
26.1. The Bank earned an income of Rs. 20.574 million against sale of following non-banking assets.
Agricultural open land situated in Lahore 6,375 - Commercial open plot situated in Faisalabad 14,199 -
20,574 -
27. ADMINISTRATIVE EXPENSES
Salaries, allowances etc. 27.1 11,370,646 10,620,614 Charge for compensated absences 315,084 268,505 Medical expenses 608,785 551,587 Contribution to defined contribution plan 237,496 206,999 (Reversal) / charge in respect of defined benefit obligations (78,584) 365,741 Rent, taxes, insurance, electricity etc. 4,203,455 3,983,602 Depreciation on operating fixed assets 11.2 1,607,107 1,521,874 Depreciation on Islamic financing against leased assets (Ijarah) 44.4 205,186 225,424 Amortization 11.3 314,870 386,494 Outsourced service charges including sales commission 4,565,397 4,320,118 Communications 1,094,953 1,148,316 Banking service charges 1,113,498 1,001,228 Cash transportation charges 647,034 577,320 Stationery and printing 669,106 592,182 Legal and professional charges 410,827 423,528 Advertisement and publicity 703,838 822,640 Repairs and maintenance 1,416,833 1,606,577 Travelling 254,657 279,207 Office running expense 776,296 636,050 Vehicle expense 184,210 178,478 Entertainment 237,801 224,844 Cartage, freight and conveyance 96,569 92,720 Insurance expense 111,267 108,484 Auditors' remuneration 27.2 71,798 52,508 Training and seminars 116,008 211,009 Brokerage expenses 18,441 30,592 Subscriptions 89,555 77,784 Donations 27.3 86,933 167,368 Non-executive Directors' fees 41,963 45,412 Zakat paid by overseas branch 283,971 137,561 Miscellaneous expenses 128,598 31,393
31,903,598 30,896,159
------- (Rupees in '000) -------
37
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
27.1
27.2 Auditors' remunerationKPMG Taseer A. F. Ferguson Overseas Total
Hadi & Co. & Co. Auditors
Audit fee 7,668 7,668 27,953 43,289 Fee for audit of EPZ branch 250 - - 250 Fee for tax and other certifications 7,075 5,562 9,322 21,959 Out of pocket expenses 3,429 2,566 305 6,300
18,422 15,796 37,580 71,798
KPMG Taseer A. F. Ferguson Overseas TotalHadi & Co. & Co. Auditors
Audit fee 7,527 7,527 22,181 42,226 Fee for audit of EPZ branch 250 - - 250 Fee for tax and other certifications 4,006 318 4,318 4,324 Out of pocket expenses 3,351 2,337 693 5,708
15,134 10,182 27,192 52,508
2016 201527.3 Details of donations
Donations individually exceeding Rs.0.1 millionNamal Education Foundation 50,000 2,400 Lahore University of Management Sciences 10,000 10,000 Forman Christian College 5,000 75,000 Shalamar Hospital 5,000 5,000 Indus Earth Trust 4,943 4,943 Abdul Sattar Edhi Foundation 4,600 800 Bahauddin Zakaria University 3,840 - SOS Children's Villages of Pakistan 980 980 Marie Adelaide Leprosy Centre 850 850 The Citizens Foundation 500 1,650 Shaukat Khanum Memorial Hospital 500 - The Kidney Center Post Graduate Training Institute 300 200 Old Associates of Kinnaird Society Karachi 250 200 Rotary Club of Karachi Metropolitan 150 - Institute of Business Administration - 40,000 Sindh Institute of Urology and Transplant - 10,000 Gulab Devi Chest Hospital - 10,000 Hisaar Foundation - 1,000 Aga Khan Hospital and Medical College - 1,000 Balochistan University of Engineering and Technology - 1,000 Inner Wheel Club Pakistan - 600 Family Welfare Maternity & General Hospital - 500 Oxford and Cambridge Society - 210 Karwan-e-Hayat - 200 Pakistan Foundation Fighting Blindness - 200 Subh-e-Nau - 200 Pakistan Parkinson's Society - 165 Old Grammarian Society Trust - 125
Donations individually not exceeding Rs.0.1 million 20 145 86,933 167,368
27.3.1
This includes accrual of employee benefits in the form of awards / bonus to all permanent staff including the ChiefExecutive Officer and is determined on the basis of employees' evaluation and the Bank's performance during the year.The aggregate benefit determined in respect of all permanent staff amounted to Rs. 1,531.067 million (2015: Rs.1,323.540 million).
------- (Rupees in '000) -------
Donations were not made to any donee in which a Director or his spouse had any interest.
------------------------------------------- (Rupees in '000) -------------------------------------------
2016
--------------------------------- (Rupees in '000) ---------------------------------
2015
38
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Note 2016 201528. OTHER PROVISIONS - NET
Provision charge / (reversal) against other assets - net 12.2 143,908 (9,249) Provision against off - balance sheet obligations 18.1 27,081 6,279 Other provisions 89,859 82,387
260,848 79,417
29. WORKERS' WELFARE FUND
2016 2015
30. OTHER CHARGES
Penalties imposed by the SBP 69,082 200,989 Other penalties 731 1,114
69,813 202,103
31. TAXATION 2016Domestic Azad Kashmir Overseas Total
Current 12,996,987 414,484 1,487,238 14,898,709 Prior years 1,700,687 - 399,694 2,100,381 Deferred 1,245,524 6,476 34,394 1,286,394
15,943,198 420,960 1,921,326 18,285,484
2015Domestic Azad Kashmir Overseas Total
Current 13,072,098 397,822 1,573,032 15,042,952 Prior years 1,625,905 - 174,636 1,800,541 Deferred (209,184) (2,882) (183,891) (395,957)
14,488,819 394,940 1,563,777 16,447,536
2016 2015
31.1 Relationship between tax expense and accounting profit
Accounting profit for the year 46,015,596 42,174,685
Tax on income @ 35% (2015: 35%) 16,105,459 14,761,140 Tax effect of items that are either not included in determining taxable
profit or taxed at reduced rates (permanent differences) 24,435 70,211 Tax - prior years (net of deferred tax) 2,116,858 1,625,956 Others 38,732 (9,771) Tax charge 18,285,484 16,447,536
------- (Rupees in '000) -------
------- (Rupees in '000) -------
-------------------------------- (Rupees in '000) ------------------------------
-------------------------------- (Rupees in '000) ------------------------------
Under the Workers' Welfare Ordinance, 1971, the Bank has accrued Workers' Welfare Fund at 2% of profit before tax asper the financial statements or declared income as per the income tax return, whichever is higher.
The Bank has made full provision for Workers Welfare Fund based on profit for the respective years.
During the current year, the Supreme Court of Pakistan vide its order dated November 10, 2016 has held that theamendments made in the law introduced by the Federal Government for the levy of Workers Welfare Fund were not lawful.The Federal Board of Revenue has filed review petitions against this order which are currently pending.
Legal advice obtained on the matter indicates that consequent to filing of these review petitions the judgment may notcurrently be treated as conclusive. Accordingly, the Bank maintains its provision in respect of WWF.
------- (Rupees in '000) -------
39
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2016 201532. EARNINGS PER SHARE
Profit after taxation for the year 27,730,112 25,727,149
Weighted average number of ordinary shares 1,224,179,687 1,224,179,687
Earnings per share - basic and diluted 22.65 21.02
32.1
Note 2016 201533. CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 6 131,506,861 112,011,276 Balances with other banks 7 14,920,994 16,859,118
146,427,855 128,870,394
34. STAFF STRENGTH
Permanent 9,735 10,026 On contract 39 39 Bank's own staff strength 9,774 10,065 Outsourced 4,379 4,558 Total 14,153 14,623
35. DEFINED BENEFIT PLANS
35.1 General description
35.2 Number of Employees under the scheme
The number of employees covered under the following defined benefit schemes are:2016 2015
- Pension fund 6,829 6,974 - Gratuity fund 7,984 8,137 - Benevolent fund 4,386 4,914 - Post retirement medical benefit scheme 9,839 10,062
35.3 Principal actuarial assumptions
The actuarial valuations were carried out as at December 31, 2016 using the following significant assumptions:
2016 2015
Discount rate / expected rate of return on plan assets 8.00% 9.00%Expected rate of salary increase 6.00% 7.00%Expected rate of increase in pension 2.00% 1.25%Expected rate of increase in medical benefit 2.00% 1.25%
---------- Per annum ----------
------------ (Number) ------------
The pension fund, benevolent fund and post retirement medical benefit schemes include 5,499 (2015: 5,505), 2,214 (2015:2,436) and 5,172 (2015: 5,224 ) members respectively who have retired or whose widows are receiving the benefits.
------- (Rupees in '000) -------
------------ (Number) ------------
The Bank operates a funded pension scheme established in 1986. The Bank also operates a funded gratuity scheme fornew employees and for those employees who have not opted for the pension scheme. The Bank also operates abenevolent fund scheme and provides post retirement medical benefits to eligible retired employees. The benevolent fundscheme and the post-retirement medical scheme cover all regular employees of the Bank who joined the Bank pre-privatization. The liabilities of the Bank in respect of these schemes are determined based on actuarial valuations carriedout using the Projected Unit Credit Method. Actuarial valuations of the defined benefit schemes are carried out every yearand the latest valuation was carried out as at December 31, 2016.
---------- (Rupees) ----------
------- (Number of shares) -------
------- (Rupees in '000) -------
Diluted earnings per share has not been presented separately as the Bank does not have any convertible instruments inissue at December 31, 2016 or 2015.
40
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
35.4 Reconciliation of (receivable from) / payable to defined benefit plans
Note
Present value of obligations 2,932,255 652,457 453,193 1,328,199 3,034,259 625,414 466,964 1,188,710Fair value of plan assets (3,077,541) (711,805) (501,671) - (2,884,308) (652,318) (899,017) - (Receivable) / payable (145,286) (59,348) (48,478) 1,328,199 149,951 (26,904) (432,053) 1,188,710
35.5 Movement in defined benefit obligations
Obligations at the beginning of the year 3,034,259 625,414 466,964 1,188,710 3,049,641 605,383 454,377 1,084,100Current service cost 8,518 108,203 7,691 4,211 12,437 95,350 7,794 3,954Interest cost 130,399 56,784 38,786 107,169 124,973 63,517 43,290 114,033Benefits paid by the Bank (507,085) (111,140) (70,819) (128,259) (643,151) (148,667) (79,465) (132,206)Return allocated to other funds 35.8.1 148,998 - - - 177,770 - - - Re-measurement loss / (gain) 117,166 (26,804) 10,571 156,368 312,589 9,831 40,968 118,829Obligations at the end of the year 2,932,255 652,457 453,193 1,328,199 3,034,259 625,414 466,964 1,188,710
35.6 Movement in fair value of plan assets
Fair value at the beginning of the year 2,884,308 652,318 899,017 - 2,971,469 630,905 876,741 - Interest income on plan assets 266,470 59,104 77,332 - 294,934 66,067 87,239 - Contribution by the Bank 332,855 111,594 2,814 - 108,044 93,214 3,182 - Contribution by the employees - - 2,814 - - - 3,182 - Amount paid by the fund to the Bank (522,251) (133,843) (496,542) - (493,913) (140,631) (73,203) - Re-measurements: Net return on plan assets
over interest income gain / (loss) 116,159 22,632 16,236 - 3,774 2,763 1,876 - Fair value at the end of the year 3,077,541 711,805 501,671 - 2,884,308 652,318 899,017 -
35.7 Movement in (receivable) / payableunder defined benefit schemes
Opening balance 149,951 (26,904) (432,053) 1,188,710 78,172 (25,522) (422,364) 1,084,100Mark-up receivable on Bank's balance with the fund (4,193) (492) (475) - (2,726) (826) (394) - Charge / (reversal) for the year 21,445 105,883 (33,669) 111,380 20,246 92,800 (39,337) 117,987Contribution by the Bank (332,855) (111,594) (2,814) - (108,044) (93,214) (3,182) - Amount paid by the Fund to the Bank 522,251 133,843 496,542 - 493,913 140,631 73,203 - Re-measurement loss / (gain) recognised in OCI
during the year 5,200 (48,944) (5,190) 156,368 311,541 7,894 39,486 118,829Benefits paid by the Bank (507,085) (111,140) (70,819) (128,259) (643,151) (148,667) (79,465) (132,206)Closing balance (145,286) (59,348) (48,478) 1,328,199 149,951 (26,904) (432,053) 1,188,710
35.8 Charge for defined benefit plans
35.8.1 Cost recognised in profit and loss
Current service cost 8,518 108,203 4,877 4,211 12,437 95,350 4,612 3,954Net interest on defined benefit asset / liability (136,071) (2,320) (38,546) 107,169 (169,961) (2,550) (43,949) 114,033Return allocated to other funds 35.8.1.1 148,998 - - - 177,770 - - - Employees' contribution - - - - - - - -
21,445 105,883 (33,669) 111,380 20,246 92,800 (39,337) 117,987
35.8.1.1
35.8.1.2
35.8.2 Re-measurements recognised in OCI during the year
Loss / (gain) on obligation- Financial assumptions 140,079 (3,922) 9,445 182,530 15,491 (3,807) 36,042 215,496- Experience adjustment (22,913) (22,882) 1,126 (26,162) 297,098 13,638 4,926 (96,667)
Return on plan assets over interest income (116,159) (22,632) (16,236) - (3,774) (2,763) (1,876) - Adjustment for markup 4,193 492 475 - 2,726 826 394 - Total re-measurements recognised in OCI 5,200 (48,944) (5,190) 156,368 311,541 7,894 39,486 118,829
2016 2015
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension fund
Gratuity fund
Benevolent fund
Post retirement
medical benefit
Pension fund
Gratuity fund
Benevolent fund
Post retirement
medical benefit
This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note5.9.1.
2016 2015
------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------
Pension fund
Gratuity fund
Benevolent fund
Post retirement
medical benefit
Pension fund
Gratuity fund
Benevolent fund
Post retirement
medical benefit
In addition, resulting from a change in the terms of the Trust, a surplus in the Benevolent fund of Rs. 432.053 million, relating to prior years has been reconginized as credit in the Profit and loss account during the year.
41
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
35.9 Components of plan assets
Pension fund
Gratuity fund
Benevolent fund
Pension fund
Gratuity fund
Benevolent fund
Cash and cash equivalents - net of current liabilities 13,559 2,767 1,688 224 190 182
Quoted securitiesOrdinary shares 169,105 10,407 23,704 109,681 5,688 15,374 Term finance certificates 81,013 6,239 10,619 93,539 10,214 14,552
Pakistan Investment Bonds 1,414,882 398,146 192,283 1,444,613 388,920 628,466 Special Savings Certificates 1,398,982 281,346 273,377 1,236,234 247,288 240,423 Other - 12,900 - 17 18 20
3,077,541 711,805 501,671 2,884,308 652,318 899,017
35.9.1
35.10 Sensitivity analysis
Pension fund
Gratuity fund
Benevolent fund
Post retire-ment
medical benefit
Increase in Discount Rate by 1 % (83,707) (42,458) (18,150) (118,362) Decrease in Discount Rate by 1 % 95,185 48,416 20,258 133,739 Increase in expected future increment in salary by 1% - 52,200 - - Decrease in expected future increment in salary by 1% - (46,472) - - Increase in expected future increment in pension by 1% 84,923 - - - Decrease in expected future increment in pension by 1% (75,179) - - - Increase in expected future increment in medical benefit by 1% - - - 23,149 Decrease in expected future increment in medical benefit by 1% - - - (26,485)
35.11 Expected contributions to be paid to the funds in the next financial year
Pension fund
Gratuity fund
Benevolent fund
Post retire-ment
medical benefit
Expected contribution - 102,352 292 -
Expected (reversal) / charge for the year (2,988) 102,352 292 115,743
2015
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculatingthe impact on the present value of the defined benefit obligations under the various employee benefit schemes. Theincrease / (decrease) in the present value of defined benefit obligations as a result of change in each assumption issummarized below:
2016
Although the analysis does not take account of the full distribution of expected cash flows, it does provide an approximationof the sensitivity of the assumptions shown.
2017
2016
The Bank contributes to the pension and gratuity funds according to the actuary's advice. Contribution to the benevolentfund is made by the Bank as per the rates set out in the benevolent fund scheme. Based on actuarial advice, managementestimates that the expected contribution and charge / (reversal) for the year ending December 31, 2017, would be asfollows:
------------------------------- (Rupees in '000) ---------------------------
-------------------------------------------- (Rupees in '000) --------------------------------------------
------------------------------ (Rupees in '000) -----------------------
The funds primarily invests in government securities and accordingly do not carry any significant credit risk. These aresubject to interest rate risk based on market movements. Investment in term finance certificates are subject to credit riskand interest rate risks, while equity securities are subject to price risk. These risks are regularly monitored by Trustees ofthe employee funds.
42
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
35.12 Maturity profilePension
fundGratuity
fundBenevolent
fundPost retire-
ment medical benefit
The weighted average duration of the obligation (in years) 6.27 6.93 4.45 9.49
35.13 Funding Policy
36. OTHER EMPLOYEE BENEFITS
36.1 Defined contribution plan
36.2 Employee Motivation and Retention Scheme
37. COMPENSATION OF DIRECTORS AND EXECUTIVES
2016 2015 2016 2015 2016 2015
Fees - - 41,963 45,412 - - Managerial remuneration 129,907 108,871 - - 4,793,916 4,422,414 Charge for defined benefit plans 1,638 1,402 - - 449,837 344,950 Charge for defined contribution plan 3,630 3,300 - - 109,310 97,643 Rent and house maintenance 4,191 4,583 - - 678,631 613,897 Utilities 1,407 1,545 - - 330,939 293,893 Medical - 46 - - 151,684 132,944 Conveyance - - - - 449,304 368,488 Others 3,394 7,558 - - 269,351 232,275
144,167 127,305 41,963 45,412 7,232,972 6,506,504
Number of persons 1 1 8 8 1,794 1,745
The Bank's President / Chief Executive Officer and certain Executives are provided with use of Bank maintained cars andhousehold equipment.
2016
The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund onany valuation date having regards to the various actuarial assumptions such as projected future salary increase, expectedfuture contributions to the fund, projected increase in liability associated with future service and the projected investmentincome of the Fund.
The Bank operates a contributory provident fund scheme for 7,981 (2015: 8,137) employees who are not in the pensionscheme. The employer and employee each contribute 8.33% of the basic salary to the funded scheme every month.
The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of thescheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates. The scheme ismanaged by separate Trusts formed in respect of each year. During the year, Rs. 38.748 million (2015: Rs. 68.928 million)and Rs. 1.437 million (2015: Rs. 2.256 million) were received by the Executives and the Chief Executive respectively fromthe scheme. No new Trust was set up during the current year.
President / Chief Executive Officer
Directors Executives
---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
In addition to the above, all Executives including the Chief Executive Officer of the Bank, are also entitled to certain shortand long term employee benefits which are disclosed in note 36.2 to these unconsolidated financial statements.
43
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
38. FAIR VALUE OF FINANCIAL INSTRUMENTS
38.1
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 1 Level 2 Level 3 TotalOn balance sheet financial instruments ----------------------------------------------(Rupees in '000)-----------------------------------Financial assets measured at fair value- Investments
Government Securities (Tbills, PIBs, GoP Sukuks and Eurobonds) 398,870,094 - 398,870,094 - 398,870,094
Foreign Bonds - Sovereign 19,399,674 - 19,399,674 - 19,399,674Foreign Bonds - others 9,799,161 - 9,799,161 - 9,799,161Ordinary shares of listed companies 22,220,669 22,220,669 - - 22,220,669Debt securities (TFCs) 562,722 - 562,722 - 562,722Investment in REIT 453,170 453,170 - - 453,170
Financial assets not measured at fair value- Cash and bank balances with treasury banks 131,506,861 - - - - - Balances with other banks 14,920,994 - - - - - Lending to financial institutions 34,168,287 - - - - - Advances 510,110,924 - - - - - Other assets 28,770,658 - - - - - Investments (HTM, unlisted ordinary shares,
preference shares, subsidiaries and associates) 355,225,756 - - - - 1,526,008,970 22,673,839 428,631,651 - 451,305,490
Financial liabilities not measured at fair value- Bills Payable 11,756,422 - - - - - Borrowings 201,549,619 - - - - - Deposits and other accounts 1,179,887,048 - - - - - Other liabilities 22,147,747 - - - -
1,415,340,836 - - - - Off balance sheet financial instrumentsForward purchase and sale of foreign exchange contracts 349,823,424 - (377,070) - (377,070) Interest rate swaps 6,986,094 - 197,083 - 197,083 Cross currency swaps 522,051 - 5,459 - 5,459 FX options - purchased and sold (net) 426,162 - - - - Forward purchase of government securities 4,998,400 - (2,391) - (2,391) Forward sale of government securities 3,553,866 - 1,717 - 1,717
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. Quotedsecurities classified as held to maturity are carried at cost. The fair value of unquoted equity securities, other thaninvestments in associates and subsidiaries, is determined on the basis of the break-up value of these investments as pertheir latest available audited financial statements.
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used inmaking the measurements:
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair valuehierarchy into which the fair value measurement is categorised:
Carrying / Notional value
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits andborrowings cannot be calculated with sufficient reliability due to the absence of a current and active market for these assetsand liabilities and reliable data regarding market rates for similar instruments.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly differentfrom their carrying values since these are either short-term in nature or, in the case of customer loans and deposits, arefrequently repriced.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for theassets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Fair value
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e.unobservable inputs).
2016
44
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Level 1 Level 2 Level 3 TotalOn balance sheet financial instruments ----------------------------------------------(Rupees in '000)-----------------------------------Financial assets measured at fair value- Investments
Government Securities (Tbills, PIBs, GoP Sukuks and Eurobonds) 375,011,154 - 375,011,154 - 375,011,154
Foreign Bonds - Sovereign 16,760,429 - 16,760,429 - 16,760,429 Foreign Bonds - others 11,200,099 - 11,200,099 - 11,200,099 Ordinary shares of listed companies 24,602,947 24,602,947 - - 24,602,947 Debt securities (TFCs) 1,291,952 - 1,291,952 - 1,291,952 Investment in REIT 447,334 447,334 - - 447,334
Financial assets not measured at fair value- Cash and bank balances with treasury banks 112,011,276 - - - - - Balances with other banks 16,859,118 - - - - - Lending to financial institutions 24,094,768 - - - - - Advances 455,413,880 - - - - - Other assets 30,778,317 - - - - - Investments (HTM, unlisted ordinary shares,
preference shares, subsidiaries and associates) 290,204,178 - - - - 1,358,675,452 25,050,281 404,263,634 - 429,313,915
Financial liabilities not measured at fair value- Bills Payable 13,391,739 - - - - - Borrowings 163,131,947 - - - - - Deposits and other accounts 1,051,235,170 - - - - - Other liabilities 21,263,607 - - - -
1,249,022,463 - - - - Off balance sheet financial instrumentsForward purchase and sale of foreign exchange contracts 409,009,742 - (80,604) - (80,604) Interest rate swaps 10,462,192 - 235,546 - 235,546 Cross currency swaps 508,129 - (5,459) - (5,459) FX options - purchased and sold (net) 740,146 - - - - Forward purchase of government securities - - - - - Forward sale of government securities 10,483,779 - 7,527 - 7,527
38.2
38.3 Valuation techniques used in determination of fair values within level 2 and level 3.
Debt Securities
Derivatives
The fair valuation techniques include forward pricing and swap models using present value calculations.
Operating fixed assets and non-banking assets acquired in satisfaction of claims
Certain categories of operating fixed assets (land and buildings) and non-banking assets acquired in satisfactions of claimsare carried at revalued amounts (level 3 measurement) determined by professional valuers based on their assessment ofthe market values as disclosed in note 11 and note 12 respectively.
Carrying / Notional value
The fair value of Federal Government securities is determined using the prices / rates available on Mutual FundsAssociation of Pakistan (MUFAP) and the fair value of other corporate and foreign government securites is determinedusing the rates from Reuters / Bloomberg
Land, buildings and non-banking assets acquired in satisfaction of claims are revalued on a periodic basis usingprofessional valuers. The valuation is based on their assessment of the market value of the assets. The effect of changes in the unobservable inputs used in the valuations cannot be determined with certainity, accordingly a qualitative disclosure ofsensitivity has not been presented in these unconsolidated financial statements.
2015Fair value
45
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
39. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
Total income 687,888 34,151,640 30,148,323 13,257,465 2,405,854 - Total expenses 98,333 1,875,185 26,603,042 5,659,441 399,573 - Profit before tax 589,555 32,276,455 3,545,281 7,598,024 2,006,281 - Segment return on assets (ROA) 101.1% 2.3% 0.2% 1.0% - - Segment cost of funds 0.0% 4.6% 2.6% 4.0% - -
Total income 581,214 27,621,195 33,920,457 13,113,734 2,592,177 - Total expenses 130,802 1,638,334 25,742,429 6,433,026 1,709,501 - Profit before tax 450,412 25,982,861 8,178,028 6,680,708 882,676 - Segment return on assets (ROA) 108.2% 2.3% 0.7% 1.0% - - Segment cost of funds 0.0% 5.4% 3.2% 4.7% - -
Segment assets (gross of NPLs provisions) 1,121,938 892,875,447 1,082,965,053 511,304,109 114,463,896 (987,782,808)Segment non performing loans (NPLs) 674,671 1,603,361 10,364,636 31,859,524 64,792 - Segment provision held against NPLs 507,379 1,584,978 8,476,832 26,790,721 36,702 - Segment liabilities 233,008 855,174,842 1,072,484,615 480,003,978 5,650,527 (987,782,808)
Segment assets (gross of NPLs provisions) 933,876 807,644,718 982,527,691 441,691,268 103,599,829 (898,210,505)Segment non performing loans (NPLs) 675,575 1,866,135 13,644,606 30,415,533 231,383 - Segment provision held against NPLs 508,071 1,846,111 10,666,275 24,439,842 75,735 - Segment liabilities 133,013 772,279,203 966,764,107 412,445,535 5,104,015 (898,210,505)
Segment assets and liabilities include inter segment balances.
Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.
40. TRUST ACTIVITIES
41. RELATED PARTY TRANSACTIONS
For the year ended December 31, 2016
The Bank is not engaged in any significant trust activities. However, it acts as custodian for some of the Term FinanceCertificates it arranges and distributes on behalf of its customers.
-------------------------------------------------------- (Rupees in '000) --------------------------------------------------------
For the year ended December 31, 2015
-------------------------------------------------------- (Rupees in '000) --------------------------------------------------------
Retail banking Commercial banking Others Inter segment
elimination
Corporate finance
Trading and sales Retail banking Commercial
banking Others Inter segment elimination
Corporate finance
As at December 31, 2016
-------------------------------------------------------- (Rupees in '000) --------------------------------------------------------
As at December 31, 2015
-------------------------------------------------------- (Rupees in '000) --------------------------------------------------------
The Bank enters into transactions with related parties in the normal course of business. Contributions to and accruals inrespect of staff retirement benefits and other benefit plans are made in accordance with the actuarial valuations / terms ofthe contribution plan. Remuneration to the executives / officers is determined in accordance with the terms of theirappointment.
The Bank has related party transactions with its associates, subsidiary companies, employee benefit plans and its Directorsand executive officers (including their associates).
Corporate finance
Trading and sales
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in theseunconsolidated financial statements, are as follows:
Corporate finance
Trading and sales Retail banking Commercial
banking Others Inter segment elimination
Trading and sales Retail banking Commercial
banking Others Inter segment elimination
46
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
41.1 RELATED PARTY TRANSACTIONS
Balances with other banks
In current accounts - - 1,462,437 - - - - 1,284,195 - -
In deposit accounts - - 1,648,597 - - - - 971,092 - -
- - 3,111,034 - - - - 2,255,287 - -
Lendings to financial institutions - - 571,712 375,000 - - - 663,914 400,000 -
Investments
Opening balance - - 4,897,174 6,914,292 3,895,328 - - 4,897,174 7,769,602 3,895,328
Investment made during the year - - - 484,690 - - - - 2,903,287 -
Investment redeemed / disposed off during the year - - - (1,680,000) - - - - (3,758,597) -
Closing balance - - 4,897,174 5,718,982 3,895,328 - - 4,897,174 6,914,292 3,895,328
Provision for diminution in value of investments - - - - 114,844 - - - - 114,844
Advances
Opening balance 706 96,464 - 2,155,149 7,907,012 368 106,148 - 2,155,149 9,394,005
Addition during the year 18,822 62,900 - - 59,472,461 4,181 78,736 - - 44,320,432
Repaid during the year (17,189) (88,936) - - (50,471,781) (3,843) (59,342) - - (45,807,425)
Transfer in / (out) - net - 23,714 - - - - (29,078) - - -
Closing balance 2,339 94,142 - 2,155,149 16,907,692 706 96,464 - 2,155,149 7,907,012
Provision held against advances - - - 2,155,149 - - - - 2,155,149 -
Other Assets
Interest mark-up accrued 7 67 1,989 4,144 235,602 - 56 9,686 8,187 91,419
Receivable from staff retirement fund - - - - 376,634 - - - - 211,687
Prepaid insurance - - - 5,206 - - - - - -
Other receivable - - 10,018 - 30,164 - - 9,447 - 30,164
Provision against other assets - - - - 30,164 - - - - 30,164
Borrowings
Opening balance - - 1,248,164 - - - - 1,230,900 - -
Borrowings during the year - - 2,814,871 - 167,100 - - 5,428,932 - -
Settled during the year - - (3,599,613) - - - - (5,411,668) - -
Closing balance - - 463,422 - 167,100 - - 1,248,164 - -
Deposits and other accounts
Opening balance 7,934,549 52,522 336,192 6,655,457 1,822,423 7,920,019 126,853 272,133 2,498,946 204,907
Received during the year 25,536,998 1,255,187 25,753,279 129,962,337 114,808,246 22,932,144 957,707 31,556,608 130,028,293 140,642,028
Withdrawn during the year (24,805,179) (1,143,273) (25,793,906) (127,735,572) (115,386,860) (22,917,614) (944,999) (31,492,549) (125,871,782) (139,317,293)
Transfer (out) / in - net - (4,490) - - 360 - (87,039) - - 292,781
Closing balance 8,666,368 159,946 295,565 8,882,222 1,244,169 7,934,549 52,522 336,192 6,655,457 1,822,423
Other Liabilities
Interest / mark-up payable on deposits 86,513 34 401 29,777 4,374 46,187 49 71 4,621 2,362
Interest / mark-up payable on borrowings - - 23,085 - 80 - - 3,170 - -
Payable to staff retirement fund - - - - - - - - - 149,951
Unearned income - - 205 - 10,420 - - 187 - 10,420
Contingencies and Commitments
Letter of guarantee - - 242,281 23,574 - - - 284,215 43,362 -
Forward foreign exchange contracts purchase - - 6,083,795 - 198,737 - - 9,096,355 - 27,061
Forward foreign exchange contracts sale - - 6,225,246 - 203,148 - - 9,309,591 - 412,487
Cross Currency Swap - - - 522,051 - - - - 508,129 -
Mark-up / return / interest earned 10 5,186 40,496 28,098 501,888 9 4,086 41,462 41,322 808,387
Commission / charges recovered 242 533 460 13,885 11,159 115 360 579 10,573 10,217
Dividend income - - 693,423 296,728 791,303 - - 406,404 448,340 821,962
Net gain on sale of securities - - - 470,389 - - - - 618,948 -
Other income - 2,621 83,862 6,461 12,514 - 5,488 41,304 10,571 2,102
Mark-up / return / interest paid 218,848 1,266 14,573 255,670 34,176 218,089 1,397 44,988 270,688 35,720
Remuneration paid - 702,909 - - - - 479,235 - - -
Post employment benefits - 23,266 - - - - 17,157 - - -
Non-executive directors' fee 41,963 - - - - 45,412 - - - -
Net charge for defined contribution plans - - - - 237,496 - - - - 206,999
Net (reversal) / charge for defined benefit plans - - - - (338,394) - - - - 116,220
Other expenses - - - 55,621 120,737 - - 1,320 47,210 127,335
Insurance premium paid - - - 239,187 - - - - 247,140 -
Insurance claims settled - - - 112,467 - - - - 132,181 -
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
2016 2015
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
2016 2015
Directors
Key
management
personnel
Subsidiaries AssociatesOther related
parties
Directors
Key
management
personnel
Subsidiaries AssociatesOther related
partiesDirectors
Key
management
personnel
Subsidiaries AssociatesOther related
parties
Other related
partiesDirectors
Key
management
personnel
Subsidiaries Associates
47
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42. CAPITAL ADEQUACY
42.1.
42.2 Capital Management
Statutory minimum capital and capital adequacy requirements
Tier 1 capital comprises of Common Equity Tier 1 (CET 1) and Additional Tier 1 (AT 1) capital.
AT 1 capital includes instruments meeting the prescribed SBP criteria e.g. perpetual non-cumulative preference shares.
The deductions from Tier 1 capital include mainly:
i) Book value of goodwill / intangibles;ii) Deficit on revaluation of available for sale investments;iii) Defined benefit pension fund assetiv) Investment in own sharesv) Reciprocal cross holdings in equity capital instruments of other banks, financial institutions and insurance companies;vi) Investment in mutual funds above a prescribed ceiling;vii) Threshold deductions applicable from 2014 on deferred tax assets and certain investments;viii)
i) Reciprocal cross holdings in other capital instruments of other banks, financial institution and insurance companies; ii)
Banks are also required to maintain a minimum Capital Adequacy Ratio (CAR) of 10.0% plus capital conservation buffer of0.65% of the risk weighted exposures of the Bank. Further, under Basel III instructions, Banks are also required to maintaina Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio of 6.65% and 7.5%, respectively, as at December 31, 2016. As atDecember 31, 2016 the Bank is fully compliant with prescribed ratios as the Bank’s CAR is 15.13% whereas CET 1 andTier 1 ratios both stood at 10.87%. The Bank and its individually regulated operations have complied with all capitalrequirements throughout the year.
CET 1 capital includes fully paid-up capital, balance in share premium account, reserve for issue of bonus shares, generalreserves as per the financial statements and net unappropriated profits.
20% of investments in majority capital instruments of financial subsidiaries not consolidated in the statement offinancial position during transition phase.
Tier 2 capital includes general provisions for loan losses, surplus on the revaluation of fixed assets, fixed income financialinstruments (AFS) and equity investments (AFS), foreign exchange translation reserves and subordinated debts (meetingthe revised eligibility criteria). The deductions from Tier 2 include mainly:
20% of investments in majority owned securities of financial subsidiaries not consolidated in the statement of financialposition, during transition phase.
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net ofaccumulated losses) for Banks to be Rs.10,000 million. The paid-up capital of the Bank for the year ended December 31,2016 stood at Rs.12,241.798 million (2015: Rs.12,241.798 million) and is in compliance with SBP requirements.
The State Bank of Pakistan (SBP) through its BPRD Circular No. 6 dated August 15, 2013 has issued Basel III Capitalinstructions for Banks / DFIs. The revision to the previously applicable Capital Adequacy regulations pertain to componentsof eligible capital and related deductions. The amendments have been introduced with an aim to further strengthen theexisting capital related rules. Basel III instructions have become effective from December 31, 2013; however, there is atransitional phase during which the complete requirements would become applicable with full implementation by December31, 2019.
The Bank’s capital adequacy is reported using the rules and ratios provided by the State Bank of Pakistan. The capitaladequacy ratio is a measure of the amount of a Bank's capital expressed as a percentage of its risk weighted assets(RWAs). Banking operations are categorized as either Trading Book or Banking Book and RWAs are determined accordingto specific treatments as per the requirements of SBP that measure the varying levels of risk attached to on balance sheetand off-balance sheet exposures. Under the current capital adequacy regulations, credit risk and market risk exposures aremeasured using the Standardized Approach and operational risk is measured using the Basic Indicator Approach. Creditrisk mitigants are also applied against the Bank’s exposures based on eligible collateral.
The Bank performs its Internal Capital Adequacy Assessment Process (ICAAP) as per the guidelines provided by the SBP.The ICAAP has been approved by the Bank’s Board of Directors and submitted to the SBP. The Bank additionally coversrisks not yet included under Pillar I, so as to carry adequate capital to cater for any future business requirements.
The Bank plans to move towards the Advanced Approaches as prescribed under Basel Framework, including theFoundation Internal Ratings Based Approach for credit risk, Internal Models Approach for market risk and the AlternateStandardized Approach for operational risk.
The objective of managing capital is to safeguard the Bank's ability to continue as a going concern. It is the policy of theBank to maintain a strong capital base so as to maintain investor, depositor and market confidence and to sustain futuredevelopment of the business. The Bank aims to maintain an optimum level of capital along with maximizing shareholders’return as we consider a sound capital position as more appropriate as opposed to leverage supporting business growth.
48
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.3 Capital Adequacy Ratio (CAR) disclosure template:
2016 2015
Amount Amount Common Equity Tier 1 capital (CET1): Instruments and reserves
1 Fully Paid-up Capital/ Capital deposited with SBP 12,241,798 12,241,798 2 Balance in Share Premium Account - - 3 Reserve for issue of Bonus Shares - - 4 Discount on Issue of shares - - 5 General/ Statutory Reserves 27,197,615 24,424,604 6 Gain/(Losses) on derivatives held as Cash Flow Hedge - - 7 Unappropriated/unremitted profits/ (losses) 64,246,270 55,222,960 8 Minority Interests arising from CET1 capital instruments issued to third parties by consolidated bank
subsidiaries (amount allowed in CET1 capital of the consolidation group) - - 9 CET 1 before Regulatory Adjustments 103,685,683 91,889,362
10 Total regulatory adjustments applied to CET1 (Note 42.3.1) 2,607,745 4,487,079 11 Common Equity Tier 1 101,077,938 87,402,283
Additional Tier 1 (AT 1) Capital12 Qualifying Additional Tier-1 capital instruments plus any related share premium - - 13 of which: Classified as equity - - 14 of which: Classified as liabilities - - 15 Additional Tier-1 capital instruments issued to third parties by consolidated subsidiaries (amount
allowed in group AT 1) - - 16 of which: instrument issued by subsidiaries subject to phase out - - 17 AT1 before regulatory adjustments - - 18 Total regulatory adjustment applied to AT1 capital (Note 42.3.2) - - 19 Additional Tier 1 capital after regulatory adjustments - - 20 Additional Tier 1 capital recognized for capital adequacy - -
21 Tier 1 Capital (CET1 + admissible AT1) (11+20) 101,077,938 87,402,283
Tier 2 Capital24 Qualifying Tier 2 capital instruments under Basel III plus any related share premium - - 25 Tier 2 capital instruments subject to phaseout arrangement issued under pre-Basel 3 rules - - 26 Tier 2 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in
group tier 2) - - 27 of which: instruments issued by subsidiaries subject to phase out - - 28 General provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk
Weighted Assets 3,128,774 4,079,561 29 Revaluation Reserves (net of taxes) 27,092,425 24,299,837 30 of which: Revaluation reserves on fixed assets 15,282,476 13,161,043 31 of which: Unrealized gains/losses on AFS 11,809,949 11,138,794 32 Foreign Exchange Translation Reserves 13,256,890 13,977,699 33 Undisclosed/Other Reserves (if any) - - 34 T2 before regulatory adjustments 43,478,089 42,357,097 35 Total regulatory adjustment applied to T2 capital (Note 42.3.3) 1,195,328 1,792,992 36 Tier 2 capital (T2) after regulatory adjustments 42,282,761 40,564,105 37 Tier 2 capital recognized for capital adequacy 39,598,094 35,543,176 38 Portion of Additional Tier 1 capital recognized in Tier 2 capital - - 39 Total Tier 2 capital admissible for capital adequacy 39,598,094 35,543,176 40 TOTAL CAPITAL (T1 + admissible T2) (21+39) 140,676,033 122,945,459
41 Total Risk Weighted Assets (RWA) {for details refer Note 42.6} 929,617,344 839,464,747
Capital Ratios and buffers (in percentage of risk weighted assets)42 CET1 to total RWA 10.87% 10.41%43 Tier-1 capital to total RWA 10.87% 10.41%44 Total capital to total RWA 15.13% 14.65%45 Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus
any other buffer requirement) 6.65% 6.25%46 of which: capital conservation buffer requirement 0.65% 0.25%47 of which: countercyclical buffer requirement - - 48 of which: D-SIB or G-SIB buffer requirement - - 49 CET1 available to meet buffers (as a percentage of risk weighted assets) 4.22% 4.16%
National minimum capital requirements prescribed by SBP50 CET1 minimum ratio 6.00% 6.00%51 Tier 1 minimum ratio 7.50% 7.50%52 Total capital minimum ratio 10.00% 10.00%
------------------------ (Rupees in '000) --------------------
49
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2015 Amount Amounts
subject to Pre- Basel III
treatment*
Amount
42.3.1 Common Equity Tier 1 capital: Regulatory adjustments1 Goodwill (net of related deferred tax liability) - - 2 All other intangibles (net of any associated deferred tax liability) 949,816 923,900 3 Shortfall in provisions against classified assets 670,120 4 Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability)- -
5 Defined-benefit pension fund net assets 56,662 56,662 - 6 Reciprocal cross holdings in CET1 capital instruments of banking, financial and
insurance entities334,864 1,040,472
7 Cash flow hedge reserve - - 8 Investment in own shares/ CET1 instruments 14,160 - 9 Securitization gain on sale - -
10 Capital shortfall of regulated subsidiaries - - 11 Deficit on account of revaluation from bank's holdings of fixed assets/ AFS - - 12 Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- -
13 Significant investments in the common stocks of banking, financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold)
- -
14 Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
- -
15 Amount exceeding 15% threshold - - 16 of which: significant investments in the common stocks of financial entities - - 17 of which: deferred tax assets arising from temporary differences - - 18 National specific regulatory adjustments applied to CET1 capital - - 19 Investments in TFCs of other banks exceeding the prescribed limit - - 20 Any other deduction specified by SBP (mention details) - - 21 Adjustment to CET1 due to insufficient AT1 and Tier 2 to cover deductions 1,252,243 1,852,587 22 Total regulatory adjustments applied to CET1 (sum of 1 to 21) 2,607,745 4,487,079
42.3.2 Additional Tier-1 : regulatory adjustments23 Investment in mutual funds exceeding the prescribed limit [SBP specific
adjustment]56,915 59,595
24 Investment in own AT1 capital instruments - - 25 Reciprocal cross holdings in Additional Tier 1 capital instruments of banking,
financial and insurance entities- -
26 Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- -
27 Significant investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation
- -
28 Adjustments to Additional Tier 1 due to insufficient Tier 2 to cover deductions - - 29 Portion of deduction applied 50:50 to Tier-1 and Tier-2 capital based on pre-Basel
III treatment which, during transitional period, remain subject to deduction from additional tier-1 capital
1,195,328 1,195,328 1,792,992
30 Total regulatory adjustment applied to AT1 capital (sum of 23 to 29) 1,252,243 1,852,587
2016Regulatory Adjustments and Additional Information
------------------------ (Rupees in '000) --------------------
50
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2015 Amount Amounts
subject to Pre- Basel III
treatment*
Amount 2016
Regulatory Adjustments and Additional Information
------------------------ (Rupees in '000) --------------------
42.3.3 Tier 2 Capital: regulatory adjustments31 Portion of deduction applied 50:50 to Tier-1 and Tier-2 capital based on pre-Basel
III treatment which, during transitional period, remain subject to deduction from tier-2 capital
1,195,328 1,195,328 1,792,992
32 Reciprocal cross holdings in Tier 2 instruments of banking, financial and insurance entities
- -
33 Investment in own Tier 2 capital instrument - - 34 Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- -
35 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation
- -
36 Total regulatory adjustment applied to T2 capital (sum of 31 to 35) 1,195,328 1,792,992
2016 2015
42.3.4 Additional Information Amount Amount Risk Weighted Assets subject to pre-Basel III treatment
37 Risk weighted assets in respect of deduction items (which during the transitional period will be risk weighted subject to Pre-Basel III Treatment)
- -
(i) of which: deferred tax assets - - (ii) of which: Defined-benefit pension fund net assets (iii) of which: Recognized portion of investment in capital of banking, financial
and insurance entities where holding is less than 10% of the issued common share capital of the entity
- -
(iv) of which: Recognized portion of investment in capital of banking, financial and insurance entities where holding is more than 10% of the issued common share capital of the entity
- -
Amounts below the thresholds for deduction (before risk weighting)
38 Non-significant investments in the capital of other financial entities - - 39 Significant investments in the common stock of financial entities - - 40 Deferred tax assets arising from temporary differences (net of related tax liability) - -
Applicable caps on the inclusion of provisions in Tier 241 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to
standardized approach (prior to application of cap)- -
42 Cap on inclusion of provisions in Tier 2 under standardized approach - - 43 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal
ratings-based approach (prior to application of cap)- -
44 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach - -
------------------- Rupees in '000 --------------------
51
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.4 Capital Structure Reconciliation
Step 1
Balance Sheet as per
published financial
statements
Under regulatory scope of
consolidation
Assets
Cash and balances with treasury banks 131,506,861 131,506,861 Balances with other banks 14,920,994 14,920,994 Lending to financial institutions 34,168,287 34,168,287 Investments 806,531,246 806,531,246 Advances 510,110,924 510,110,924 Operating fixed assets 35,581,758 35,581,758 Deferred tax assets - net - - Other assets 44,730,953 44,730,953
Total assets 1,577,551,023 1,577,551,023
Liabilities & Equity
Bills payable 11,756,422 11,756,422 Borrowings 201,549,619 201,549,619 Deposits and other accounts 1,179,887,048 1,179,887,048 Sub-ordinated loans - - Liabilities against assets subject to finance lease - - Deferred tax liability - net 4,691,544 4,691,544 Other liabilities 27,879,529 27,879,529
Total liabilities 1,425,764,162 1,425,764,162
Share capital 12,241,798 12,241,798 Reserves 40,454,505 40,454,505 Unappropriated profit 64,246,270 64,246,270
Total equity 116,942,573 116,942,573
Surplus on revaluation of assets - net of deferred tax 34,844,288 34,844,288
Total liabilities and equity 1,577,551,023 1,577,551,023
--------- (Rupees in '000) ---------
As at Dec 31, 2016
52
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.4 Capital Structure (Contd.)
Step 2
Balance Sheet as per published
financial statements
Under regulatory scope of
consolidation
Reference
AssetsCash and balances with treasury banks 131,506,861 131,506,861 Balances with other banks 14,920,994 14,920,994 Lendings to financial institutions 34,168,287 34,168,287 Investments 806,531,246 806,531,246 of which: Non-significant capital investments in capital of other financial institutions
exceeding 10% threshold
- - a
of which: significant capital investments in financial sector entities exceeding
regulatory threshold
- - b
of which: Mutual Funds exceeding regulatory threshold 56,915 56,915 c of which: reciprocal crossholding of capital instrument 334,864 334,864 d of which: Investment in own shares/ CET1 instruments 14,160 14,160 eAdvances 510,110,924 510,110,924
shortfall in provisions/ excess of total EL amount over eligible provisions under
IRB
- - f
general provisions reflected in Tier 2 capital 3,128,774 3,128,774 gFixed Assets 35,581,758 35,581,758 of which: Goodwill - - j of which: Intangibles 949,816 949,816 kDeferred Tax Assets - - of which: DTAs excluding those arising from temporary differences - - h of which: DTAs arising from temporary differences exceeding regulatory threshold - - iOther assets 44,730,953 44,730,953 of which: Defined-benefit pension fund net assets 56,662 56,662 lTotal assets 1,577,551,023 1,577,551,023
Liabilities & EquityBills payable 11,756,422 11,756,422 Borrowings 201,549,619 201,549,619 Deposits and other accounts 1,179,887,048 1,179,887,048 Sub-ordinated loans - - of which: eligible for inclusion in AT1 - - m of which: eligible for inclusion in Tier 2 - - nLiabilities against assets subject to finance lease - - Deferred tax liabilities 4,691,544 4,691,544 of which: DTLs related to goodwill - - o of which: DTLs related to intangible assets - - p of which: DTLs related to defined pension fund net assets - - q of which: other deferred tax liabilities 4,691,544 4,691,544 rOther liabilities 27,879,529 27,879,529 Total liabilities 1,425,764,162 1,425,764,162
Share capital 12,241,798 12,241,798 of which: amount eligible for CET1 12,241,798 12,241,798 s of which: amount eligible for AT1 - - tReserves 40,454,505 40,454,505 of which: portion eligible for inclusion in CET1(provide breakup) 27,197,615 27,197,615 u of which: portion eligible for inclusion in Tier 2 13,256,890 13,256,890 vUnappropriated profit/ (losses) 64,246,270 64,246,270 wMinority Interest - - of which: portion eligible for inclusion in CET1 - - x of which: portion eligible for inclusion in AT1 - - y of which: portion eligible for inclusion in Tier 2 - - zSurplus on revaluation of assets 34,844,288 34,844,288 of which: Revaluation reserves on Property 19,703,328 19,703,328 aa of which: Unrealized Gains/Losses on AFS 15,140,960 15,140,960 In case of Deficit on revaluation (deduction from CET1) - - abTotal liabilities and equity 1,577,551,023 1,577,551,023
--------- (Rupees in '000) ---------
As at Dec 31, 2016
53
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.4 Capital Structure (Contd.)
Step 3 Component of regulatory capital reported by bank (Rupees in '000)
Source based on reference number
from step 2
Common Equity Tier 1 capital (CET1): Instruments and reserves
1 Fully Paid-up Capital/ Capital deposited with SBP 12,241,798 2 Balance in Share Premium Account - 3 Reserve for issue of Bonus Shares - 4 General/ Statutory Reserves 27,197,615 5 Gain/(Losses) on derivatives held as Cash Flow Hedge - 6 Unappropriated/unremitted profits/(losses) 64,246,270 (w)7 Minority Interests arising from CET1 capital instruments issued to third party by consolidated
bank subsidiaries (amount allowed in CET1 capital of the consolidation group)- (x)
8 CET 1 before Regulatory Adjustments 103,685,683
Common Equity Tier 1 capital: Regulatory adjustments
9 Goodwill (net of related deferred tax liability) - (j) - (o)10 All other intangibles (net of any associated deferred tax liability) 949,816 (k) - (p)11 Shortfall of provisions against classified assets - (f)12 Deferred tax assets that rely on future profitability excluding those arising from temporary
differences (net of related tax liability)- {(h) - (r} * x%
13 Defined-benefit pension fund net assets 56,662 {(l) - (q)} * x%14 Reciprocal cross holdings in CET1 capital instruments 334,864 (d)15 Cash flow hedge reserve - 16 Investment in own shares/ CET1 instruments 14,160 17 Securitization gain on sale - 18 Capital shortfall of regulated subsidiaries - 19 Deficit on account of revaluation from bank's holdings of property/ AFS - (ab)20 Investments in the capital instruments of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- (a) - (ac) - (ae)
21 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold)
- (b) - (ad) - (af)
22 Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
- (i)
23 Amount exceeding 15% threshold - 24 of which: significant investments in the common stocks of financial entities - 25 of which: deferred tax assets arising from temporary differences - 26 National specific regulatory adjustments applied to CET1 capital - 27 Investment in TFCs of other banks exceeding the prescribed limit - 28 Any other deduction specified by SBP (mention details) - 29 Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions 1,252,243
30 Total regulatory adjustments applied to CET1 (sum of 9 to 25) 2,607,745 Common Equity Tier 1 101,077,939
Additional Tier 1 (AT 1) Capital
31 Qualifying Additional Tier-1 instruments plus any related share premium - 32 of which: Classified as equity - (t)33 of which: Classified as liabilities - (m)34 Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third
parties (amount allowed in group AT 1)- (y)
35 of which: instrument issued by subsidiaries subject to phase out - 36 AT1 before regulatory adjustments
(s)
(u)
54
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Component of regulatory capital reported by bank (Rupees in '000)
Source based on reference number
from step 2
Additional Tier 1 Capital: regulatory adjustments
37 Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment) 56,915 38 Investment in own AT1 capital instruments - 39 Reciprocal cross holdings in Additional Tier 1 capital instruments - 40 Investments in the capital instruments of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- (ac)
41 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation
- (ad)
42 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-1 capital
1,195,328
43 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
-
44 Total of Regulatory Adjustment applied to AT1 capital 1,252,243 45 Additional Tier 1 capital 46 Additional Tier 1 capital recognized for capital adequacy -
Tier 1 Capital (CET1 + admissible AT1) 101,077,939
Tier 2 Capital47 Qualifying Tier 2 capital instruments under Basel III - 48 Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments) -
49 Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group tier 2)
- (z)
50 of which: instruments issued by subsidiaries subject to phase out - 51 General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit
Risk Weighted Assets3,128,774 (g)
52 Revaluation Reserves eligible for Tier 253 of which: portion pertaining to Property 15,282,476 54 of which: portion pertaining to AFS securities 11,809,949 55 Foreign Exchange Translation Reserves 13,256,890 (v)56 Undisclosed/Other Reserves (if any)57 T2 before regulatory adjustments 43,478,089
Tier 2 Capital: regulatory adjustments58 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-
Basel III treatment which, during transitional period, remain subject to deduction from tier-2 capital
1,195,328
59 Reciprocal cross holdings in Tier 2 instruments - 60 Investment in own Tier 2 capital instrument - 61 Investments in the capital instruments of banking, financial and insurance entities that are
outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
- (ae)
62 Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of regulatory consolidation
- (af)
63 Amount of Regulatory Adjustment applied to T2 capital 1,195,328 64 Tier 2 capital (T2) 42,282,761 65 Tier 2 capital recognized for capital adequacy 39,598,094 66 Excess Additional Tier 1 capital recognized in Tier 2 capital - 67 Total Tier 2 capital admissible for capital adequacy 39,598,094
TOTAL CAPITAL (T1 + admissible T2) 140,676,033
(n)
portion of (aa)
55
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.5 Main Features Template of Regulatory Capital Instruments
Disclosure template for main features of regulatory capital instruments
Main Features Common Shares1 Issuer United Bank Limited
2 Unique identifier (eg PSX Symbol or Bloomberg identifier etc.) On PSX “UBL” and on Bloomberg “UBLS”.
3 Governing law(s) of the instrument Relevant Capital Market LawsRegulatory treatment
4 Transitional Basel III rules Common Equity Tier 1
5 Post-transitional Basel III rules Common Equity Tier 1
6 Eligible at solo/ group/ group&solo Group & Standalone
7 Instrument type Ordinary Shares
8 Amount recognized in regulatory capital (Currency in PKR thousands, as of reporting date) 12,241,798
9 Par value of instrument Rs 10 each
10 Accounting classification Shareholders' equity
11 Original date of issuance 1959
12 Perpetual or dated Perpetual
13 Original maturity date No maturity
14 Issuer call subject to prior supervisory approval Not applicable
15 Optional call date, contingent call dates and redemption amount Not applicable
16 Subsequent call dates, if applicable Not applicable
Coupons / dividends
17 Fixed or floating dividend/ coupon Not applicable
18 coupon rate and any related index/ benchmark Not applicable
19 Existence of a dividend stopper No
20 Fully discretionary, partially discretionary or mandatory Fully discretionary
21 Existence of step up or other incentive to redeem No
22 Noncumulative or cumulative Not applicable
23 Convertible or non-convertible Non Convertible
24 If convertible, conversion trigger (s) Not applicable
25 If convertible, fully or partially Not applicable
26 If convertible, conversion rate Not applicable
27 If convertible, mandatory or optional conversion Not applicable
28 If convertible, specify instrument type convertible into Not applicable
29 If convertible, specify issuer of instrument it converts into Not applicable
30 Write-down feature Not applicable
31 If write-down, write-down trigger(s) Not applicable
32 If write-down, full or partial Not applicable
33 If write-down, permanent or temporary Not applicable
34 If temporary write-down, description of write-up mechanism Not applicable
35 Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument
Common equity (ranks after all creditors including depositors)
36 Non-compliant transitioned features Not applicable
37 If yes, specify non-compliant features Not applicable
Set out below is the template that banks must use to ensure that the key features of all regulatory capital instruments are disclosed. Banks will be required to complete all of the cells for each outstanding regulatory capital instrument (please insert “NA” if the question is not applicable). Banks are required to report each regulatory capital instrument (including common shares) in a separate column of the template, such that the completed template would provide a "main features report" that summaries all of the regulatory capital instruments of the bank / banking group.
56
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.6 Risk Weighted Assets
2016 2015 2016 2015
Credit Risk
On-Balance sheet Sovereign 6,214,276 5,579,264 62,142,764 55,792,640 Public Sector entities 978,715 962,846 9,787,149 9,628,458 Banks 4,442,695 4,288,920 44,426,950 42,889,198 Corporate 28,300,317 24,462,772 283,003,175 244,627,719 Retail 2,128,835 2,003,566 21,288,345 20,035,660 Residential Mortgages 140,495 144,164 1,404,945 1,441,637 Past Due loans 1,239,924 1,683,933 12,399,239 16,839,328 Listed equity investments 176,922 178,666 1,769,225 1,786,656 Unlisted equity investments 12,161 21,187 121,605 211,871 Commercial Entity 55,872 55,872 558,720 558,720 Operating Fixed Assets 3,463,194 3,140,185 34,631,942 31,401,855 Significant investment 896,496 597,664 8,964,960 5,976,641 Other assets 1,443,125 896,587 14,431,245 8,965,867
49,493,027 44,015,626 494,930,264 440,156,250
Off-Balance sheet Non-market related 10,100,831 8,539,032 101,008,311 85,390,319 Market related 165,447 176,642 1,654,469 1,766,420
10,266,278 8,715,674 102,662,780 87,156,739
Market Risk
Interest rate risk 11,901,688 11,011,922 148,771,103 137,649,023 Equity position risk 3,816,538 4,152,250 47,706,729 51,903,125 Foreign Exchange risk 219,847 264,062 2,748,088 3,300,775
15,938,073 15,428,234 199,225,920 192,852,923
Operational Risk 10,623,870 9,543,907 132,798,380 119,298,833 86,321,248 77,703,440 929,617,344 839,464,745
Capital adequacy ratioTotal eligible regulatory capital held 140,676,033 122,945,459 Total risk weighted assets 929,617,344 839,464,747 CET1 to total RWA 10.8% 10.4%Tier-1 capital to total RWA 10.8% 10.4%Total capital to total RWA 15.1% 14.6%
42.7 Credit risk - General disclosures
Capital Requirements Risk Weighted Assets
------------------ (Rupees in '000) ---------------
The Bank follows the Standardized Approach for its credit risk exposures, which sets out fixed risk weights correspondingto external credit ratings or type of exposure, whichever is applicable.
Under the Standardized Approach, the capital requirement is based on the credit rating assigned to counterparties byExternal Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Bank selects particular ECAIs for eachtype of exposure. The Bank utilizes the credit ratings assigned by Pakistan Credit Rating Agency (PACRA), Japan CreditRating Company Limited – Vital Information Systems (JCR-VIS), Fitch, Moody’s and Standard & Poors (S & P). The Bankalso utilizes rating scores of Export Credit Agencies (ECAs) participating in the “Arrangement on Officially SupportedExport Credits”.
57
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Types of exposure and ECAIs used
FITCH Moody's S & P PACRA JCR-VIS ECA scores
Corporates - P - P P -Banks P P P P P -Sovereigns - - - - - P
Public sector enterprises - - - P P -
Mapping to SBP Rating Grades
Long Term Rating Grades mapping
Fitch Moody’s S & P PACRA JCR-VIS ECA Scores
AAA Aaa AAA AAA AAA 0AA+ Aa1 AA+ AA+ AA+ 1AA Aa2 AA AA AAAA- Aa3 AA- AA- AA-A+ A1 A+ A+ A+ 2A A2 A A AA- A3 A- A- A-
BBB+ Baa1 BBB+ BBB+ BBB+ 3BBB Baa2 BBB BBB BBBBBB- Baa3 BBB- BBB- BBB-BB+ Ba1 BB+ BB+ BB+ 4BB Ba2 BB BB BBBB- Ba3 BB- BB- BB-B+ B1 B+ B+ B+ 5B B2 B B B 6B- B3 B- B- B-
7
Short Term Rating Grades mapping
Fitch Moody’s S & P PACRA JCR-VIS
F1 P-1 A-1+ A-1+ A-1+F1 P-1 A-1 A-1 A-1F2 P-2 A-2 A-2 A-2F3 P-3 A-3 A-3 A-3
Others Others Others Others Others
S1S1S2S3S4
CCC+ and below
CCC+ and below
CCC+ and below
SBP Rating Grade
CCC+ and below
Caa1 and below
5
6
1
For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The mappingtables used for converting ECAI ratings to SBP rating grades are given below:
SBP Rating grade
2
3
4
58
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
42.8 Credit exposures subject to Standardized Approach
Rating category /
risk weights
Amount outstanding
Deduction CRM Net amount Amount
outstandingDeduction
CRM Net amount
------------------------------- (Rupees in '000) -----------------------------------
Cash and cash equivalents - 18,069,390 - 18,069,390 13,072,712 - 13,072,712Claims on Federal and Provincial Governments and
SBP, denominated in PKR - 497,451,486 128,836,359 368,615,127 445,363,390 143,583,595 301,779,795Foreign currency claims on SBP arising out of statutory
obligations in Pakistan - 9,135,162 - 9,135,162 9,274,554 - 9,274,554
Claims on other sovereigns and on 1 1,121,551 - 1,121,551 14,664 - 14,664Government of Pakistan or provincial 2 27,915,202 - 27,915,202 27,730,887 - 27,730,887governments or SBP denominated in 3 3,753,370 - 3,753,370 2,006,945 - 2,006,945currencies other than PKR 4,5 11,270,408 - 11,270,408 8,228,796 - 8,228,796
6 28,941,753 - 28,941,753 27,342,796 - 27,342,796Unrated - - - - - -
73,002,284 - 73,002,284 65,324,088 - 65,324,088
Corporates 0 - - - - - - 1 57,666,917 867 57,666,050 49,560,476 9,434,735 40,125,7412 24,694,145 19,648 24,674,497 21,823,391 441,406 21,381,985
3,4 1,497,260 - 1,497,260 1,698,024 - 1,698,0245,6 - - - - - -
Unrated-1 220,747,322 27,370,889 193,376,433 192,468,105 25,043,077 167,425,028Unrated-2 116,409,462 78,875 116,330,587 98,024,261 54,003 97,970,258
421,015,106 27,470,279 393,544,827 363,574,257 34,973,221 328,601,036
1,2,3 362,206 - 362,206 1,359,453 - 1,359,4534,5 - - - 38,916 - 38,9166 84,911 - 84,911 - - -
Unrated 3,261,702 - 3,261,702 3,202,758 - 3,202,7583,708,819 - 3,708,819 4,601,127 - 4,601,127
Banks - others 0 - - - - - 1 116,701,304 60,202,146 56,499,158 40,597,344 1,865,947 38,731,397
2,3 34,671,927 - 34,671,927 36,952,086 318,883 36,633,2034,5 9,389,435 - 9,389,435 7,594,035 208,981 7,385,0546 4,345,866 - 4,345,866 6,699,805 - 6,699,805
Unrated 30,569,544 - 30,569,544 29,987,458 - 29,987,458195,678,076 60,202,146 135,475,930 121,830,728 2,393,811 119,436,917
Public sector enterprises 0 - - - - - - 1 23,912,438 12,736,928 11,175,510 22,370,042 1,666,995 20,703,047
2,3 10,690,051 5,503,637 5,186,414 - - - 4,5 - - - - - - 6 - - - - - -
Unrated 90,347,819 73,513,237 16,834,582 81,758,557 63,855,886 17,902,671124,950,308 91,753,802 33,196,506 104,128,599 65,522,881 38,605,718
Retail portfolio 75% 33,881,001 3,836,605 30,044,396 29,991,077 2,260,943 27,730,134Claims fully secured by residential mortgage 35% 4,014,129 - 4,014,129 4,118,964 - 4,118,964
37,895,130 3,836,605 34,058,525 34,110,041 2,260,943 31,849,098
Equity investments - Listed 100% 1,769,225 - 1,769,225 1,786,656 - 1,786,656 - Unlisted 150% 81,070 - 81,070 141,247 - 141,247 - Commercial Entity (Holding grater than 10%) 1000% 55,872 - 55,872 55,872 - 55,872
1,906,167 - 1,906,167 1,983,775 - 1,983,775
Past due loans secured against mortgageof residential property: - less than 20% provided 100% 24,786 - 24,786 25,075 - 25,075 - greater than 20% provided 50% 50,443 - 50,443 88,074 - 88,074
75,229 - 75,229 113,149 - 113,149
Past due loans - others - Less than 20% provided 150% 4,722,399 - 4,722,399 8,304,838 - 8,304,838 - Between 20% to 50% provided 100% 4,778,654 - 4,778,654 3,426,454 - 3,426,454 - More than 50% provided 50% 973,957 - 973,957 1,773,010 - 1,773,010
10,475,010 - 10,475,010 13,504,302 - 13,504,302
Significant investment 250% 3,585,984 - 3,585,984 2,390,656 - 2,390,656Fixed assets 100% 34,631,942 - 34,631,942 31,401,855 - 31,401,855Others 100% 14,982,412 - 14,982,412 9,688,808 - 9,688,808
1,446,562,505 312,099,191 1,134,463,314 1,220,362,041 248,734,451 971,627,590
Claims on banks with maturity less than 3 months and denominated in foreign currency
2016 2015
Exposures
59
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Credit Risk: Disclosures with respect to Credit Risk Mitigation for Standardized Approach
42.9 Leverage Ratio
Leverage Ratio = Tier 1 capital (after related deductions)
2016 2015--------- (Rupees in '000) ---------
On-Balance Sheet AssetsCash and balances with treasury banks 131,506,861 112,011,276 Balances with other banks 14,920,994 16,859,118 Lendings to financial institutions 34,168,287 29,485,888 Investments 804,944,138 711,233,914 Advances 510,110,924 453,960,870 Operating fixed assets 34,631,942 31,401,854 Deferred tax assets - - Financial Derivatives (A.1) 792,340 1,242,036 Other assets 43,962,233 40,353,988 Total Assets (A) 1,575,037,719 1,396,548,944
Derivatives (On-Balance Sheet)Interest Rate 283,749 305,341 Equity - - Foreign Exchange & gold 508,591 936,695 Precious Metals (except gold) - - Commodities - - Credit Derivatives (protection brought & sold) - - Any other derivatives - - Total Derivatives (A.1) 792,340 1,242,036
No credit risk mitigation benefit is taken in the Trading Book.
The Bank has adopted the Comprehensive Approach of Credit Risk Mitigation for the Banking Book. Under thisapproach, cash, lien on deposits, government securities and eligible guarantees etc. are considered as eligiblecollateral. The Bank has in place detailed guidelines with respect to the valuation and management of each of thesetypes of collateral. Where the Bank’s exposure to an obligor is secured by eligible collateral, the Bank reduces itsexposure for the calculation of capital requirement by the realizable amount of the collateral, adjusted for any applicable
For each asset class, the risk weights as specified by the SBP or corresponding to the SBP rating grades are applied tothe net amount for the calculation of Risk Weighted Assets.
The State Bank of Pakistan (SBP) through its BPRD Circular No. 06 of 2013 has issued instructions regardingimplementation of parallel run of leverage ratio reporting and its components from December 31, 2013 to December31, 2017.During this period the final calibration, and any further adjustments to the definition, will be completed, with aview to set the leverage ratio as a separate capital standard on December 31, 2018. Banks are required to disclosethe leverage ratio from December 31, 2015.
The Basel III leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (thedenominator), with this ratio expressed as a percentage:
As at December 31, 2016 the Bank’s Leverage ratio stood at 4.85% which is well above the minimum requirement of3.0%
Total Exposure
60
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2016 2015--------- (Rupees in '000) ---------
Off-Balance Sheet Items excluding derivativesDirect Credit Substitutes (i.e. Acceptances, general guarantees
for indebtness etc.) 40,243,856 30,596,505 Performance-related Contingent Liabilities (i.e. Guarantees) 110,067,510 108,443,418 Trade-related Contingent Liabilities (i.e. Letter of Credits) 145,823,726 127,144,385 Lending of securities or posting of securities as collaterals 153,557,471 122,771,194 Undrawn committed facilities (which are not cancellable) 45,085,158 19,419,745 Unconditionally cancellable commitments 9,694,433 9,900,613 Commitments in respect of operating leases - - Commitments for the acquisition of operating fixed assets 2,755,836 2,411,095 Other commitments - - Total Off-Balance Sheet Items excluding Derivatives (B) 507,227,990 420,686,955
Interest Rate 34,582 52,311 Equity - - Foreign Exchange & gold 1,791,964 2,085,773 Precious Metals (except gold) - - Commodities - - Credit Derivatives (protection sold and bought) - - Other derivatives - - Total Derivatives (C) 1,826,546 2,138,084
Tier-1 Capital 101,077,939 87,402,283Total Exposures (sum of A,B and C) 2,084,092,255 1,819,373,983 Leverage Ratio 4.85% 4.80%
43. RISK MANAGEMENT
- Determining guidelines relating to the Bank’s risk appetite.
-
-
- Developing systems and resources to review the key risk exposures of the Bank.
- Approving credits and granting approval authority to qualified and experienced individuals.
- Reviewing the adequacy of credit training across the Bank.
- Organizing portfolio reviews focusing on quality assessment, risk profiles, industry concentrations, etc.
- Setting systems to identify significant portfolio indicators, problem credits and level of provisioning required.
This section presents information about the Bank’s exposure to and its management and control of risks, in particular,the primary risks associated with its use of financial instruments such as credit, market, liquidity, and operational risks.
The Bank has an integrated risk management structure in place. The Board Risk and Compliance Committee (BRCC)oversees the entire risk management process of the Bank. Furthermore, Risk Management Committee has beenformed which looks at all risks collectively at senior management level. The committee is chaired by the President andcomprises of Heads of all Risk areas, Finance, Business etc. The Risk and Credit Policy Group is responsible for thedevelopment and implementation of all risk policies as approved by the BRCC / BoD. The group is organized into thefunctions of Market & Treasury Risk, Financial Institution Risk Management Unit (FIRMU), Credit Policy & Research,Consumer Credit Policy, Credit Risk Management and Operational Risk & Basel II. Each risk function is headed by asenior manager who reports directly to the Group Executive, Risk and Credit Policy. The role of the Risk and CreditPolicy Group includes:
Recommending risk management policies in accordance with the Prudential Regulations, Basel II / III frameworkand international best practices.
Reviewing policies / manuals and ensuring that these are in accordance with BRCC / BoD approved riskmanagement policies.
Commitments in respect of Derivatives - OffBalance Sheet Items (Derivatives having negative
61
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.1 Credit risk
43.2 Segmental information
43.2.1 Segments by class of business
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Chemical and pharmaceuticals 11,247,768 2.04% 3,337,614 0.28% 2,911,636 0.40%Agri business 57,047,144 10.36% 12,950,830 1.10% 52,778 0.01%Textile spinning 18,055,669 3.28% 413,205 0.04% 4,255,496 0.58%Textile weaving 6,691,939 1.22% 319,156 0.03% 1,933,418 0.27%Textile composite 25,607,196 4.65% - 0.00% 3,365,109 0.46%Textile others 15,228,871 2.77% 2,397,836 0.20% 2,205,971 0.30%Cement 5,182,402 0.94% 2,410,307 0.20% 1,890,002 0.26%Sugar 6,376,894 1.16% 2,388,205 0.20% 315,140 0.04%Shoes and leather garments 2,458,083 0.45% 787,972 0.07% 327,094 0.04%Automobile and transportation equipment 17,612,083 3.20% 6,293,256 0.53% 7,471,237 1.03%Financial 36,007,524 6.54% 14,074,360 1.19% 453,144,196 62.28%Insurance - 0.00% 24,854,391 2.11% - 0.00%Electronics and electrical appliances 14,790,288 2.69% 4,596,421 0.39% 675,306 0.09%Production and transmission of energy 101,906,289 18.51% 45,825,379 3.88% 49,314,330 6.78%Paper and allied 3,848,787 0.70% 589,135 0.05% 1,706,322 0.23%Surgical and metal 7,034 0.00% 4,559,269 0.39% 77,526 0.01%Contractors 8,141,350 1.48% 8,731,584 0.74% 26,609,262 3.66%Wholesale traders 19,785,045 3.59% 32,794,395 2.78% 5,520,961 0.76%Fertilizer dealers 18,005,581 3.27% 556,736 0.05% 4,874,513 0.67%Sports goods 41,990 0.01% 80,479 0.01% - 0.00%Food industries 23,863,907 4.33% 7,463,153 0.63% 1,908,394 0.26%Airlines 12,739,537 2.31% 2,550,346 0.22% 783,838 0.11%Cables 782,524 0.14% 457,963 0.04% 626,743 0.09%Construction 26,151,063 4.75% 17,018,282 1.44% 15,062,235 2.07%Containers and ports - 0.00% 151,778 0.01% 1,282,181 0.18%Engineering 13,863,026 2.52% 3,421,095 0.29% 11,760,689 1.62%Glass and allied 501,930 0.09% 160,710 0.01% 149,988 0.02%Hotels 1,852,660 0.34% 702,989 0.06% 2,092,784 0.29%Infrastructure - 0.00% 1,716,401 0.15% - 0.00%Media - 0.00% 774,621 0.07% - 0.00%Polyester and fiber 4,527,773 0.82% 6,308 0.00% 948,722 0.13%Telecommunication 15,659,911 2.84% 9,817,664 0.83% 21,033,604 2.89%Individuals 45,440,606 8.25% 732,563,365 62.09% 3,951,369 0.54%Others 37,211,436 6.76% 235,121,843 19.93% 101,373,964 13.93%
550,636,310 100.00% 1,179,887,048 100.00% 727,624,808 100.00%
Gross advances Deposits Contingencies andcommitments
Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at anytime thereafter. This risk arises from the potential that a customer's or counterparty’s willingness or ability to meet such anobligation is impaired, resulting in an economic loss to the Bank.
The credit risk management process is driven by the Bank's Credit Policy and Credit Manual, which provides policies andprocedures in relation to credit initiation, approval, documentation and disbursement, credit maintenance and remedialmanagement.
Individual credit authorities are delegated to credit officers by the Group Head - Risk & Credit Policy, according to theirseasoning / maturity. Approvals for Corporate and Consumer loans are centralized, while approval authorities forCommercial, SME and Agri exposures are delegated to a Regional level. All credit policy functions are centrally organized.
Concentrations of credit risk exist if clients are engaged in similar activities, or are located in the same geographical region,or have comparable economic characteristics such that their ability to meet contractual obligations would be similarlyaffected by changes in economic, political or other conditions. The Bank manages, limits and controls concentrations ofcredit risk to individual counterparties and groups, and to industries, where appropriate. Limits are also applied toportfolios or sectors where the Bank considers it appropriate to restrict credit risk concentrations, or to areas of higher risk,or to control the rate of portfolio growth.
2016
62
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Chemical and pharmaceuticals 9,327,735 1.88% 1,809,762 0.17% 2,659,971 0.36%Agri business 37,590,714 7.56% 11,874,669 1.13% 2,325,693 0.31%Textile spinning 14,705,839 2.96% 553,544 0.05% 2,848,725 0.38%Textile weaving 5,417,328 1.09% 255,592 0.02% 2,131,163 0.28%Textile composite 20,341,891 4.09% - 0.00% 1,559,303 0.21%Textile others 16,422,436 3.30% 1,998,225 0.19% 1,075,023 0.14%Cement 2,858,739 0.58% 2,383,333 0.23% 896,732 0.12%Sugar 14,018,803 2.82% 1,396,474 0.13% 107,631 0.01%Shoes and leather garments 1,958,673 0.39% 488,165 0.05% 1,041,359 0.14%Automobile and transportation equipment 10,587,725 2.13% 10,247,697 0.97% 4,249,808 0.57%Financial 30,261,665 6.09% 15,223,752 1.45% 513,448,033 68.55%Insurance - 0.00% 10,673,655 1.02% 121,361 0.02%Electronics and electrical appliances 8,456,906 1.70% 6,476,527 0.62% 3,651,241 0.49%Production and transmission of energy 100,062,164 20.13% 51,011,758 4.85% 47,985,564 6.41%Paper and allied 3,236,199 0.65% 686,934 0.07% 2,302,756 0.31%Surgical and metal 2,489 0.00% 5,972,287 0.57% 70,030 0.01%Contractors 12,777,129 2.57% 10,010,900 0.95% 16,626,752 2.22%Wholesale traders 21,637,963 4.35% 26,508,688 2.52% 4,523,502 0.60%Fertilizer dealers 11,267,831 2.27% 913,573 0.09% 5,663,803 0.76%Sports goods 38,994 0.01% 93,124 0.01% 229,470 0.03%Food industries 23,860,683 4.80% 3,941,517 0.37% 1,533,347 0.20%Airlines 15,848,181 3.19% 2,265,330 0.22% 457,699 0.06%Cables 986,195 0.20% 348,447 0.03% 309,760 0.04%Construction 19,788,776 3.98% 16,721,589 1.59% 16,385,198 2.19%Containers and ports - 0.00% 595,295 0.06% 1,924,480 0.26%Engineering 11,785,930 2.37% 3,284,407 0.31% 14,081,762 1.88%Glass and allied 348,047 0.07% 76,996 0.01% 236,136 0.03%Hotels 2,669,794 0.54% 1,400,307 0.13% 3,236,578 0.43%Infrastructure 431,286 0.09% 1,816,718 0.17% 6,159 0.00%Media - 0.00% 260,167 0.02% 60,509 0.01%Polyester and fiber 2,732,892 0.55% 6,404 0.00% 1,258,323 0.17%Telecommunication 14,516,669 2.92% 15,732,498 1.50% 18,757,589 2.50%Individuals 39,668,602 7.98% 647,621,253 61.61% 4,399,489 0.59%Others 43,423,632 8.74% 198,585,583 18.89% 72,901,786 9.73%
497,031,910 100.00% 1,051,235,170 100.00% 749,066,735 100.00%
43.2.2 Segment by Sector
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Public / Government 153,653,795 27.90% 146,930,185 12.45% 96,756,329 13.30%Private 396,982,515 72.10% 1,032,956,863 87.55% 630,868,479 86.70%
550,636,310 100.00% 1,179,887,048 100.00% 727,624,808 100.00%550,636,310 1,179,887,048
(Rupees in '000) Percent (Rupees in '000) Percent (Rupees in '000) Percent
Public / Government 136,660,276 27.54% 126,568,747 12.04% 53,004,687 7.08%Private 360,371,634 72.46% 924,666,423 87.96% 696,062,048 92.92%
497,031,910 100.00% 1,051,235,170 100.00% 749,066,735 100.00%
2015
Gross advances Deposits Contingencies andcommitments
Gross advances Deposits Contingencies andcommitments
2015
2016 Gross advances Deposits Contingencies and
commitments
63
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.2.3 Details of non performing advances and specific provisions by class of business segment
Classified advances
Specific provision held
Classified advances
Specific provision held
Chemical and pharmaceuticals 148,244 148,244 504,257 398,238 Agri business 380,707 256,571 415,651 328,849 Textile spinning 4,156,868 4,156,868 5,001,480 5,142,833 Textile weaving 408,409 408,409 536,323 536,323 Textile composite 4,288,595 3,982,674 4,239,761 4,019,343 Textile others 4,000,574 3,995,053 3,823,115 3,688,149 Sugar 848,069 776,819 158,123 44,585 Shoes and leather garments 689,772 689,772 688,402 688,402 Automobile and transportation equipment 173,155 172,705 200,394 200,394 Financial 1,596,722 1,596,722 1,884,031 1,863,981 Electronics and electrical appliances 1,260,205 471,505 276,224 202,510 Production and transmission of energy 6,140,951 5,052,753 6,853,347 4,069,380 Paper and allied 163,708 163,708 164,508 164,508 Wholesale traders 3,541,543 2,538,281 3,170,066 2,155,061 Fertilizer dealers 67,623 67,623 74,814 74,814 Sports goods - - 23,834 23,834 Food industries 2,441,732 2,049,338 921,899 783,239 Construction 2,523,191 2,521,191 3,604,270 3,339,694 Engineering 1,203,086 135,766 1,358,851 291,531 Hotels 475,494 475,494 475,494 475,494 Polyester and fiber 1,699,294 1,699,294 2,249,901 2,249,902 Individuals 4,999,976 3,183,651 6,918,575 4,317,813 Others 3,359,066 2,854,171 3,289,912 2,477,157
44,566,984 37,396,612 46,833,232 37,536,034
43.2.4 Details of non performing advances and specific provision by sector
Classified advances
Specific provision held
Classified advances
Specific provision held
Public / Government 1,089,630 22,313 1,089,630 22,313 Private 43,477,354 37,374,299 45,743,602 37,513,721
44,566,984 37,396,612 46,833,232 37,536,034
43.2.5 Geographical segment analysis
Pakistan operations 41,679,626 1,305,891,720 107,445,556 632,363,179
Middle East 4,226,809 299,091,186 41,366,373 91,074,273 United States of America 37,206 11,573,555 2,462,422 16,326 Export Processing Zones 71,955 1,534,998 512,510 4,171,030
4,335,970 312,199,739 44,341,305 95,261,629
46,015,596 1,618,091,459 151,786,861 727,624,808
---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
2016 2015
2016 2015
---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
2016Profit before
taxationTotal assets
employedNet assets employed
Contingencies and
commitments
64
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Pakistan operations 37,908,536 1,146,594,978 100,090,385 660,947,021
Middle East 4,136,015 284,197,137 39,156,824 87,984,936 United States of America 74,433 7,172,640 2,426,167 1,685 Export Processing Zones 55,701 1,514,484 462,099 133,093
4,266,149 292,884,261 42,045,090 88,119,714
42,174,685 1,439,479,239 142,135,475 749,066,735
Total assets employed include intra group items of Rs. 40,540.436 million (2015: Rs. 38,828.396 million).
43.3 Market Risk
The functions of the Market Risk Management unit are as follows:
- To keep the market risk exposure within the Bank’s risk appetite as assigned by the BoD and the BRCC.
-
-
-
To develop, review and upgrade procedures for the effective implementation of market risk management policiesapproved by the BoD and BRCC.
The Market and Treasury Risk division performs market risk management activities. Within this division, the Market RiskManagement unit is responsible for the development and review of market risk policies and processes, and is involved inresearch, financial modeling and testing / implementation of risk management systems, while Treasury Middle Office isresponsible for implementation and monitoring of market risk and other policies, escalation of deviations to seniormanagement, and MIS reporting.
Trading activities are centered in the Treasury and Capital Markets Group which facilitates clients and also runs proprietarypositions. The Bank is active in the cash and derivative markets for equity, interest rate and foreign exchange.
Market risk is the risk that the fair value of a financial instrument will fluctuate due to movements in market prices. It resultsfrom changes in interest rates, exchange rates and equity prices as well as from changes in the correlations betweenthem. Each of these components of market risk consists of a general market risk and a specific market risk that is drivenby the nature and composition of the portfolio.
Measuring and controlling market risk is usually carried out at a portfolio level. However, certain controls are applied,where necessary, to individual risk types, to particular books and to specific exposures. Controls are also applied toprevent any undue risk concentrations in trading books, taking into account variations in price, volatility, market depth andliquidity. These controls include limits on exposure to individual market risk variables as well as limits on concentrations oftenors and issuers.
To review new product proposals and propose / recommend / approve procedures for the management of theirmarket risk. Various limits are assigned to different businesses on a product / portfolio basis. The products areapproved through product programs, where risks are identified and limits and parameters are set. Any transactions /products falling outside these product programs are approved through separate transaction / product memos.
To maintain a comprehensive database for performing risk analysis, stress testing and scenario analysis. Stresstesting activities are performed on a quarterly basis on both the Banking and Trading books.
2015
---------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------
Profit before taxation
Total assets employed
Net assets employed
Contingencies and
commitments
65
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.3.1 Foreign Exchange Risk
Pakistan Rupee 1,248,172,097 1,074,639,549 (23,292,889) 150,239,659 US Dollar 173,342,067 97,588,465 (73,845,865) 1,907,737 Pound Sterling 2,674,719 19,584,949 17,163,381 253,151 Japanese Yen 21,492 6,528 (11,749) 3,215 Euro 1,667,112 8,007,130 6,490,019 150,001 UAE Dirham 98,808,232 160,743,572 61,312,602 (622,738) Bahraini Dinar 13,468,415 20,218,063 6,309,942 (439,706) Qatari Riyal 26,785,382 31,840,101 4,916,279 (138,440) Other Currencies 12,611,507 13,135,805 958,280 433,982
1,577,551,023 1,425,764,162 - 151,786,861
Pakistan Rupee 1,087,037,989 928,414,686 (13,693,395) 144,929,908 US Dollar 167,187,602 90,658,977 (79,191,983) (2,663,358) Pound Sterling 2,265,177 19,599,808 17,542,362 207,731 Japanese Yen 6,263 118,852 114,008 1,419 Euro 1,210,550 12,016,145 10,798,862 (6,733) UAE Dirham 95,059,845 140,645,046 45,705,786 120,585 Bahraini Dinar 12,376,067 23,707,222 11,256,095 (75,060) Qatari Riyal 21,491,162 28,378,483 6,331,700 (555,621) Other Currencies 14,016,188 14,976,149 1,136,565 176,604
1,400,650,843 1,258,515,368 - 142,135,475 -
43.3.2 Equity position risk
43.3.3 Yield / interest rate risk
2015
2016
Liabilities Net currency exposure
Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates,including changes in the shape of yield curves. Interest rate risk is inherent in many of the Bank's businesses and arisesfrom mismatches between the contractual maturities or the re-pricing of on and off balance sheet assets and liabilities.The interest rate sensitivity profile is prepared on a quarterly basis based on the re-pricing or contractual maturities ofassets and liabilities.
Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testingand taking appropriate actions where required.
Liabilities Off - balance sheet items
Net currency exposure
----------------------------- (Rupees in '000) -----------------------------
----------------------------- (Rupees in '000) -----------------------------
Off - balance sheet items
Foreign Exchange Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreignexchange rates. Exposures are monitored by currency to ensure that they remain within the established limits for eachcurrency. Exposures are also monitored on an overall basis to ensure compliance with the Bank’s SBP approved ForeignExchange Exposure Limit.
Equity position risk is the risk that the fair value of a financial instrument will fluctuate due to changes in the prices ofindividual stocks or the levels of equity indices. The Bank’s equity book comprises of held for trading (HFT) and availablefor sale (AFS) portfolios. The objective of the HFT portfolio is to make short-term capital gains, whilst the AFS portfolio ismaintained with a medium term view of earning both capital gains and dividend income. Product program manuals havebeen developed to provide guidelines on the objectives and policies, risks and mitigants, limits and controls for the equityportfolios of the Bank.
The Bank's reporting currency is the Pakistan Rupee, but its assets, liabilities, income and expenses are denominated inmultiple currencies. From time to time, TCM proactively hedges foreign currency exposures resulting from its marketmaking activities, subject to pre-defined limits.
The Bank is an active participant in the cash and derivatives markets for currencies and carries currency risk from thesetrading activities, conducted primarily by the Treasury and Capital Markets Group (TCM). These trading exposures aremonitored through prescribed stress tests and sensitivity analyses.
Assets
Assets
66
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.3.4
Upto 1 monthOver 1 month
to 3 months
Over 3
months to 6
months
Over 6
months to 1
year
Over 1 year
to 2 years
Over 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 yearsOver 10 years
On-balance sheet financial instruments %
Assets
Cash and balances with treasury banks 0.01% 131,506,861 8,617,552 - - - - - - - - 122,889,309
Balances with other banks 1.56% 14,920,994 7,578,877 2,000,000 - - - - - - - 5,342,117
Lendings to financial institutions 4.48% 34,168,287 3,376,955 19,610,513 3,851,990 523,002 4,703,225 1,305,313 797,289 - - -
Investments 8.29% 806,531,246 31,092,617 70,579,983 22,533,948 47,107,512 129,174,346 109,624,534 181,982,635 177,241,723 3,754,207 33,439,741
Advances 6.36% -
Performing 502,940,552 89,285,288 297,318,124 72,894,699 11,442,402 7,304,847 6,561,660 4,845,977 5,505,909 7,781,646
Non-performing 7,170,372 - - - - - - - - - 7,170,372
Other assets 0.00% 28,770,658 - - - - - - - - - 28,770,658
1,526,008,970 139,951,289 389,508,620 99,280,637 59,072,916 141,182,418 117,491,507 187,625,901 182,747,632 11,535,853 197,612,197
Liabilities
Bills payable 0.00% 11,756,422 - - - - - - - - - 11,756,422
Borrowings 5.28% 201,549,619 163,011,950 27,568,121 7,843,330 3,026,274 99,944 - - - - -
Deposits and other accounts 2.69% 1,179,887,048 519,079,769 61,355,687 47,933,323 15,629,871 4,969,275 11,702,862 43,416,816 346,482 - 475,452,963
Other liabilities 0.00% 22,147,747 - - - - - - - - - 22,147,747
1,415,340,836 682,091,719 88,923,808 55,776,653 18,656,145 5,069,219 11,702,862 43,416,816 346,482 - 509,357,132
On-balance sheet gap 110,668,134 (542,140,430) 300,584,812 43,503,984 40,416,771 136,113,199 105,788,645 144,209,085 182,401,150 11,535,853 (311,744,935)
Net non financial assets 41,118,727
Total net assets 151,786,861
Off-balance sheet financial instruments
Interest Rate Derivatives - Long position 6,986,094 - 634,181 69,732 - 648,000 5,634,181 - - - -
Interest Rate Derivatives - Short position (6,986,094) - (1,282,181) (5,069,732) - - (634,181) - - - -
Cross Currency Swap - Long position 522,051 - 522,051 - - - - - - - -
Cross Currency Swap - Short position (522,051) - (522,051) - - - - - - - -
FX Options - Long position 213,081 143,248 69,833 - - - - - - - -
FX Options - Short position (213,081) (143,248) (69,833) - - - - - - - -
Forward Purchase of Government Securities 4,998,400 4,998,400 - - - - - - - - -
Forward Sale of Government Securities (3,553,866) (3,553,866) - - - - - - - - -
Foreign currency forward purchases 186,835,721 58,295,855 72,456,371 43,763,031 12,320,464 - - - - - -
Foreign currency forward sales (162,987,703) (59,953,361) (55,208,929) (36,849,566) (10,975,847) - - - - - -
Off-balance sheet Gap 25,292,552 (212,972) 16,599,442 1,913,465 1,344,617 648,000 5,000,000 - - - -
Total Yield / Interest Rate Risk Sensitivity Gap 135,960,686 (542,353,402) 317,184,254 45,417,449 41,761,388 136,761,199 110,788,645 144,209,085 182,401,150 11,535,853 (311,744,935)
Cumulative Yield / Interest Rate Risk Sensitivity Gap (542,353,402) (225,169,148) (179,751,699) (137,990,311) (1,229,112) 109,559,533 253,768,618 436,169,768 447,705,621 135,960,686
Mismatch of interest rate sensitive assets and liabilities
Effective
yield /
interest rate
------------------------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------------------------
Non-interest
bearing
financial
instruments
2016
Total
Exposed to yield / interest rate risk
67
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Upto 1 month Over 1 month
to 3 months
Over 3
months to 6
months
Over 6
months to 1
year
Over 1 year
to 2 years
Over 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
On-balance sheet financial instruments %
Assets
Cash and balances with treasury banks 0.00% 112,011,276 8,834,266 - - - - - - - - 103,177,010
Balances with other banks 0.98% 16,859,118 7,488,240 2,930,007 - - - - - - - 6,440,871
Lendings to financial institutions 4.92% 24,094,768 7,829,201 2,803,531 2,660,086 4,702,713 2,270,908 2,656,053 356,050 816,226 - -
Investments 9.41% 719,518,093 55,657,986 37,515,031 28,613,760 104,547,985 58,836,683 130,159,521 111,271,404 149,066,951 3,633,728 40,215,044
Advances 7.74% -
Performing 446,116,682 99,006,318 270,448,711 40,932,808 6,849,354 5,218,726 6,415,291 4,006,731 10,268,976 2,969,767 -
Non-performing 9,297,198 - - - - - - - - - 9,297,198
Other assets 0.00% 30,778,317 - - - - - - - - - 30,778,317
1,358,675,452 178,816,011 313,697,280 72,206,654 116,100,052 66,326,317 139,230,865 115,634,185 160,152,153 6,603,495 189,908,440
Liabilities
Bills payable 0.00% 13,391,739 - - - - - - - - - 13,391,739
Borrowings 5.93% 163,131,947 126,064,735 15,311,293 5,524,942 8,278,403 444,576 321,950 1,102,800 5,502,848 - 580,400
Deposits and other accounts 3.11% 1,051,235,170 472,383,243 83,743,641 50,692,366 21,603,170 7,271,026 7,375,391 10,598,104 5,628,096 291,123 391,649,010
Other liabilities 0.00% 21,263,607 - - - - - - - - - 21,263,607
1,249,022,463 598,447,978 99,054,934 56,217,308 29,881,573 7,715,602 7,697,341 11,700,904 11,130,944 291,123 426,884,756
On-balance sheet gap 109,652,989 (419,631,967) 214,642,346 15,989,346 86,218,479 58,610,715 131,533,524 103,933,281 149,021,209 6,312,372 (236,976,316)
Net non financial assets 32,482,486
Total net assets 142,135,475
Off-balance sheet financial instruments
Interest Rate Derivatives - Long position 10,462,192 - 1,328,230 104,741 - 104,741 1,073,250 7,851,230 - - -
Interest Rate Derivatives - Short position (10,462,192) - (1,924,480) (7,104,741) - (104,741) (477,000) (851,230) - - -
Cross Currency Swap - Long position 508,129 - 508,129 - - - - - - - -
Cross Currency Swap - Short position (508,129) - (508,129) - - - - - - - -
FX Options - Long position 370,073 - - - - - - - - - 370,073
FX Options - Short position (370,073) - - - - - - - - - (370,073)
Forward Purchase of Government Securities - - - - - - - - - - -
Forward Sale of Government Securities (10,483,779) (10,483,779) - - - - - - - - -
Foreign currency forward purchases 211,486,719 126,139,788 79,571,498 5,053,527 721,906 - - - - - -
Foreign currency forward sales (197,523,023) (111,557,236) (79,096,871) (5,275,900) (1,593,016) - - - - - -
Off-balance sheet Gap 3,479,917 4,098,773 (121,623) (7,222,373) (871,110) - 596,250 7,000,000 - - -
Total Yield / Interest Rate Risk Sensitivity Gap 113,132,906 (415,533,194) 214,520,723 8,766,973 85,347,369 58,610,715 132,129,774 110,933,281 149,021,209 6,312,372 (236,976,316)
Cumulative Yield / Interest Rate Risk Sensitivity Gap (415,533,194) (201,012,471) (192,245,498) (106,898,129) (48,287,414) 83,842,360 194,775,641 343,796,850 350,109,222 113,132,906
------------------------------------------------------------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------------------------------------------------------------
2015
Effective
yield /
interest rate
Total Exposed to yield / interest rate risk Non-interest
bearing
financial
instruments
68
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.4 Liquidity risk
Liquidity risk is the risk that the Bank may be unable to meet its obligations or to fund increases in assets as they fall due without incurring unacceptable cost or losses.
43.4.1
Total Upto 1 month Over 1 month to 3 months
Over 3 months to 6 months
Over 6 months to 1 year
Over 1 year to 2 years
Over 2 years to 3 years
Over 3 years to 5 years
Over 5 years to 10 years
Over 10 years
AssetsCash and balances with treasury banks 131,506,861 76,592,440 4,041,134 3,960,472 5,733,293 4,936,702 3,418,617 5,421,144 15,990,082 11,412,977 Balances with other banks 14,920,994 12,920,994 2,000,000 - - - - - - - Lendings to financial institutions 34,168,287 2,627,465 16,318,642 3,566,375 823,002 5,510,853 4,830,387 225,825 265,738 - Investments 806,531,246 31,738,157 70,108,740 8,671,646 66,608,308 134,155,282 101,991,780 198,044,685 173,990,678 21,221,970 Advances - Performing 502,940,552 116,263,682 117,781,565 49,053,920 21,185,362 15,038,818 25,772,686 66,319,700 70,886,027 20,638,792 Advances - Non-performing 7,170,372 - - - - - - - - 7,170,372 Operating fixed assets 35,581,758 194,110 1,148,514 1,755,526 266,389 559,163 560,123 5,388,772 1,880,420 23,828,741 Other assets 44,730,953 5,707,333 5,283,509 20,955,494 11,439,719 26,392 24,686 24,043 251,497 1,018,280
1,577,551,023 246,044,181 216,682,104 87,963,433 106,056,073 160,227,210 136,598,279 275,424,169 263,264,442 85,291,132 LiabilitiesBills payable 11,756,422 3,011,259 2,204,387 2,160,388 4,380,388 - - - - - Borrowings 201,549,619 163,928,135 15,023,397 8,223,042 3,261,913 186,168 194,690 817,585 9,426,000 488,689 Deposits and other accounts 1,179,887,048 143,143,116 138,494,886 90,930,243 97,940,038 86,994,141 84,547,486 101,096,692 255,633,054 181,107,392 Deferred tax liability 4,691,544 - - - 1,172,886 1,172,886 1,172,886 1,172,886 - - Other liabilities 27,879,529 9,273,476 2,160,321 464,337 2,460,228 1,123,745 1,017,112 1,114,490 4,902,255 5,363,565
1,425,764,162 319,355,986 157,882,991 101,778,010 109,215,453 89,476,940 86,932,174 104,201,653 269,961,309 186,959,646 Net assets 151,786,861 (73,311,805) 58,799,113 (13,814,577) (3,159,380) 70,750,270 49,666,105 171,222,516 (6,696,867) (101,668,514)
Represented by:Share capital 12,241,798 Reserves 40,454,505 Unappropriated profit 64,246,270 Surplus on revaluation of assets 34,844,288
151,786,861
The Assets and Liability Management Committee (ALCO) of the Bank is responsible for the oversight of liquidity management and meets on a monthly basis or more frequently, ifrequired.
The Bank’s approach to liquidity management is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressedconditions, without incurring unacceptable losses or risking sustained damage to business franchises. A centralized approach is adopted, based on an integrated frameworkincorporating an assessment of all material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The frameworkentails careful monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed marketconditions, including general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Bank’s business.
Maturities of assets and liabilities - based on working prepared by the Assets and Liabilities Management Committee (ALCO) of the Bank
Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimatedusing an Exponentially Weighted Moving Average model based on data for the last seven years. The maturity profile of certain non-contractual assets and liabilities which are related tospecific assets and liabilities follows the maturity profile of the underlying asset or liability. The maturity profile of other non-contractual assets and liabilities is expected to follow historical patterns of behavior. The methodology and the assumptions used to derive the maturity profile of non-contractual assets and liabilities have been approved by ALCO.
2016
--------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------
69
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Total Upto 1 month Over 1 month to 3 months
Over 3 months to 6 months
Over 6 months to 1 year
Over 1 year to 2 years
Over 2 years to 3 years
Over 3 years to 5 years
Over 5 years to 10 years
Over 10 years
AssetsCash and balances with treasury banks 112,011,276 68,523,683 2,658,880 2,605,808 3,772,243 5,247,683 4,026,689 6,385,408 13,446,385 5,344,497 Balances with other banks 16,859,118 16,859,118 - - - - - - - - Lendings to financial institutions 24,094,768 6,327,316 882,492 1,646,424 5,232,401 3,069,238 5,442,106 1,349,700 145,091 - Investments 719,518,093 53,683,660 33,400,847 22,741,393 129,578,556 59,737,275 134,258,337 113,443,727 154,974,036 17,700,262 Advances - Performing 446,116,682 106,386,510 83,076,952 43,979,362 26,429,235 16,936,500 20,641,300 91,372,545 47,150,729 10,143,549 Advances - Non-performing 9,297,198 - - - - - - - - 9,297,198 Operating fixed assets 31,630,374 137,955 532,668 816,327 163,943 626,672 489,105 3,699,497 2,255,423 22,908,784 Other assets 41,123,334 18,464,959 8,119,726 3,325,717 8,005,671 208,908 191,573 1,260,187 591,411 955,182
1,400,650,843 270,383,201 128,671,565 75,115,031 173,182,049 85,826,276 165,049,110 217,511,064 218,563,075 66,349,472
LiabilitiesBills payable 13,391,739 4,759,755 3,483,823 3,414,285 1,733,876 - - - - - Borrowings 163,131,947 126,774,800 17,872,337 5,643,176 6,035,758 553,776 767,819 1,619,487 3,695,925 168,869 Deposits and other accounts 1,051,235,170 146,855,480 138,427,705 90,968,092 89,416,761 95,652,454 78,460,024 110,760,238 219,918,599 80,775,817 Deferred tax liability 4,186,406 - - - 1,046,602 1,046,602 1,046,601 1,046,601 - - Other liabilities 26,570,106 10,355,424 2,377,887 2,501,368 968,884 1,092,784 843,842 1,300,063 3,036,693 4,093,161
1,258,515,368 288,745,459 162,161,752 102,526,921 99,201,881 98,345,616 81,118,286 114,726,389 226,651,217 85,037,847
Net assets 142,135,475 (18,362,258) (33,490,187) (27,411,890) 73,980,168 (12,519,340) 83,930,824 102,784,675 (8,088,142) (18,688,375)
Represented by:
Share capital 12,241,798 Reserves 38,402,303 Unappropriated profit 55,222,960 Surplus on revaluation of assets 36,268,414
142,135,475
2015
--------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------
70
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.4.2 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Bank
Total Upto 1 month Over 1 month to 3
months
Over 3 months to 6
months
Over 6 months to 1
year
Over 1 year to 2 years
Over 2 years to 3 years
Over 3 years to 5 years
Over 5 years to 10 years
Over 10 years
Assets
Cash and balances with treasury banks 131,506,861 131,506,861 - - - - - - - - Balances with other banks 14,920,994 12,920,994 2,000,000 - - - - - - - Lendings to financial institutions 34,168,287 2,941,260 16,318,642 3,252,452 823,002 5,510,853 5,194,313 127,765 - - Investments 806,531,246 78,824,599 54,956,011 17,863,289 47,088,767 133,349,226 109,630,801 183,697,691 177,374,227 3,746,635 Advances 510,110,924 116,263,682 117,781,565 49,053,920 21,185,362 15,038,818 25,772,686 66,319,700 70,886,027 27,809,164 Operating fixed assets 35,581,758 194,110 1,148,514 1,755,526 266,389 559,163 560,123 5,388,772 1,880,420 23,828,741 Other assets 44,730,953 5,707,335 5,283,509 20,955,494 11,439,719 26,392 24,686 24,043 251,497 1,018,278
1,577,551,023 348,358,841 197,488,241 92,880,681 80,803,239 154,484,452 141,182,609 255,557,971 250,392,171 56,402,818 Liabilities
Bills payable 11,756,422 11,756,422 - - - - - - - - Borrowings 201,549,619 163,175,690 15,100,193 8,683,435 2,762,490 118,277 198,880 1,379,672 9,729,395 401,587 Deposits and other accounts 1,179,887,048 979,014,011 88,780,326 50,220,338 18,804,119 26,415,337 7,529,916 9,053,455 69,546 - Deferred tax liability - net 4,691,544 4,691,544 - - - - - - - - Other liabilities 27,879,529 24,085,260 281,444 69,012 9,622 - - - - 3,434,191
1,425,764,162 1,182,722,927 104,161,963 58,972,785 21,576,231 26,533,614 7,728,796 10,433,127 9,798,941 3,835,778 Net assets 151,786,861 (834,364,086) 93,326,278 33,907,896 59,227,008 127,950,838 133,453,813 245,124,844 240,593,230 52,567,040
Represented by:
Share capital 12,241,798 Reserves 40,454,505 Unappropriated profit 64,246,270 Surplus on revaluation of assets 34,844,288
151,786,861
2016
The maturity profile presented below has been prepared as required by IFRS on the basis of contractual maturities, except for products that do not have a contractual maturity which areshown in the first bucket.
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
71
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
Total Upto 1 month Over 1 month to 3
months
Over 3 months to 6
months
Over 6 months to 1
year
Over 1 year to 2 years
Over 2 years to 3 years
Over 3 years to 5 years
Over 5 years to 10 years
Over 10 years
Assets
Cash and balances with treasury banks 112,011,276 112,011,276 - - - - - - - - Balances with other banks 16,859,118 13,929,117 2,930,001 - - - - - - - Lendings to financial institutions 24,094,768 6,327,316 882,492 1,646,424 5,232,401 3,069,238 5,442,106 1,349,700 145,091 - Investments 719,518,093 91,107,443 33,381,145 22,741,393 104,519,593 59,737,275 134,258,337 113,443,727 154,974,036 5,355,144 Advances 455,413,880 106,386,510 83,076,952 43,979,362 26,429,235 16,936,500 20,641,300 91,372,545 47,150,729 19,440,747 Operating fixed assets 31,630,374 137,955 532,668 816,327 163,943 626,672 489,105 3,699,497 2,255,423 22,908,784 Other assets 41,123,334 34,388,933 5,483,801 380,198 775,137 77,233 - - - 18,032
1,400,650,843 364,288,550 126,287,059 69,563,704 137,120,309 80,446,918 160,830,848 209,865,469 204,525,279 47,722,707 Liabilities
Bills payable 13,391,739 13,391,739 - - - - - - - - Borrowings 163,131,947 126,774,800 17,872,337 5,643,176 6,035,758 553,776 767,819 1,619,487 3,695,925 168,869 Deposits and other accounts 1,051,235,170 866,713,576 87,209,373 45,152,494 23,874,286 5,423,709 9,226,661 8,615,778 5,016,919 2,374 Deferred tax liability - net 4,186,406 4,186,406 - - - - - - - - Other liabilities 26,570,106 23,091,528 319,467 8,943 3,705 - - - - 3,146,463
1,258,515,368 1,034,158,049 105,401,177 50,804,613 29,913,749 5,977,485 9,994,480 10,235,265 8,712,844 3,317,706 Net assets 142,135,475 (669,869,499) 20,885,882 18,759,091 107,206,560 74,469,433 150,836,368 199,630,204 195,812,435 44,405,001
Represented by:
Share capital 12,241,798 Reserves 38,402,303 Unappropriated profit 55,222,960 Surplus on revaluation of assets 36,268,414
142,135,475
2015
--------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------
72
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
43.5 Operational risk
44. ISLAMIC BANKING BUSINESS
The Bank operates 47 (2015: 41) Islamic Banking Branches and 141 (2015: 141 ) Islamic Banking windows.
The statement of financial position of the Bank's Islamic Banking Branches as at December 31 is as follows:
Note 2016 2015
ASSETSCash and balances with treasury banks 2,327,107 1,646,846 Balances with other banks 2,862,278 3,213,299 Due from financial institutions 44.2 12,726,452 1,300,000 Investments 13,104,677 17,247,343 Islamic financing and related assets 44.3 7,284,386 7,070,382 Operating fixed assets 155,843 151,283 Due from Head Office 9,365,555 2,146,205 Other assets 143,903 160,736 Total Assets 47,970,201 32,936,094
LIABILITIESBills payable 238,126 197,090 Deposits and other accounts
Current accounts - non remunerative 9,752,775 5,431,588 Current accounts - remunerative 2,520,018 1,870,337 Saving accounts 2,994,848 2,904,770 Term deposits 1,299,848 1,392,031 Deposits from financial institutions - remunerative 28,773,229 19,457,452 Deposits from financial institutions - non remunerative - 30,007
45,340,718 31,086,185 Due to Head Office - - Other liabilities 721,401 452,259
46,300,245 31,735,534 NET ASSETS 1,669,956 1,200,560
REPRESENTED BYIslamic Banking Fund 2,181,000 1,681,000 Accumulated losses (609,289) (532,990)
1,571,711 1,148,010 Surplus on revaluation of assets 98,245 52,550
1,669,956 1,200,560
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or fromexternal events.
The Operational Risk & Basel II Division is primarily responsible for the oversight of operational risk management acrossthe Bank. The operational risk management framework of the Bank is governed by the Operational Risk ManagementPolicy and Procedures, while the implementation is supported by an operational risk management system and designatedoperational risk coordinators within different units across the bank. The framework is in line with international bestpractices, flexible enough to implement in stages and permits the overall approach to evolve in response to organizationallearning and future requirements.
Loss data, collected through a well defined program, is evaluated and processes are reviewed for improvements inmitigation techniques. Periodic workshops are conducted for Risk & Control Self Assessment and key risk exposures areidentified and assessed against existing controls to evaluate improvement opportunities. Key Risk Indicators are alsodefined for monitoring of risk exposures. New products, systems, activities and processes, are subject to comprehensiveoperational risk assessments, before implementation.
Business Continuity Plans have been implemented across the bank, clearly defining the roles and responsibilities ofrespective stakeholders, and covering recovery strategy, IT and structural backups, scenario and impact analyses andtesting directives. The outsourcing policy has also been augmented to address risks associated with such arrangements.
--------- (Rupees in '000) ---------
73
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
The profit and loss account of the Bank's Islamic Banking branches for the year ended December 31 is as follows:
2016 2015
Return earned 2,053,224 1,647,780 Return expensed 1,412,390 1,283,399
640,834 364,381
Provision against loans and advances - net 1,469 12,104 Reversal of provision for diminution in value of investments - net (2,182) -
(713) 12,104 Net return after provisions 641,547 352,277
Other IncomeFee, commission and brokerage income 67,432 22,762 Income from dealing in foreign currencies 12,683 11,336 Gain on sale of securities - net 4,299 16,157 Other income 47,802 3,757 Total other income 132,216 54,012
773,763 406,289 Other ExpensesAdministrative expenses 849,931 662,509 Other provisions - net 131 37 Total other expenses 850,062 662,546 Loss for the year (76,299) (256,257)
Accumulated losses brought forward (532,990) (276,733) Accumulated losses carried forward (609,289) (532,990)
Remuneration to Shariah Board and Advisor 6,058 3,295
44.1. Charity Fund
Opening balance 2,342 5,102 Addition during the year 1,404 2,240 Payments during the year (3,098) (5,000) Closing balance 648 2,342
44.2.
44.3. Islamic financing and related assets 2016 2015
Financings Murabaha 242,391 259,138 Ijarah 44.4 620,848 714,570 Diminishing Musharaka 6,203,709 6,077,784
7,066,948 7,051,492 AdvancesAdvances and receivables against Ijarah 120,828 7,886 Advances for Diminishing Musharaka 87,892 8,082 Advances for Murabaha 21,998 27,598
230,718 43,566 Profit and other receivables against financings and advances 74,308 61,442 Gross Islamic financing and related assets 7,371,974 7,156,500 Provision against financings and advances (87,588) (86,118)
7,284,386 7,070,382
--------- (Rupees in '000) ---------
This includes Bai Muajjal agreements entered into with various financial institutions whereby the Bank sold sukuks havingcarrying value of Rs. 11,073.312 million on deferred payment basis. The average return on these transactions is 5.60%.The balances are due to mature latest by March 2017.
--------- (Rupees in '000) ---------
74
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
44.4 Ijarah
2016Cost Accumulated Depreciation
Additions / Charge /(Deletions) (Deletions)
----------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------
1,191,438 258,436 1,039,790 476,868 205,186 418,942 620,848 (410,084) (263,112)
1,191,438 (151,648) 1,039,790 476,868 (57,926) 418,942 620,848
2015Cost Accumulated Depreciation
Additions / Charge /(Deletions) (Deletions)
----------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------
1,133,042 272,224 1,191,438 393,770 225,424 476,868 714,570 (213,828) (142,326)
1,133,042 58,396 1,191,438 393,770 83,098 476,868 714,570
44.5 Disclosures for profit and loss distribution and pool management
Ameen Daily Munafa Account (ADMA) Pool
Special Pool(s)
Treasury Pool(s)
General Pool
For all pools, the Mudarib’s share is deducted from the distributable profit to calculate the profit to be allocated to depositors.The allocation of the profit to various deposit categories is determined by the amount invested in that category relative to thetotal pool, as well as by the weightage assigned to the various deposit categories.
During 2016, UBL Ameen (the Mudarib) maintained following pools which accept deposits on the basis of Mudaraba fromdepositors (Rabbulmaal). Pool funds are invested in Islamic modes of financing and investments. The profit earned on thepool is therefore susceptible to the same market and credit risks as discussed in note 43 to the unconsolidated financialstatements.
The ADMA pool consists of deposits for the ADMA product. The net return on the pool is arrived at after deduction of directcosts from the gross return earned on the pool. From the net return, profit is paid to the Mudarib in the ratio of the Mudarib’sequity in the pool to the total pool. The balance represents the distributable profit.
Separate pool(s) are created where the customers desire to invest in high yield assets. These pool(s) rates are higher thanthe general pool depending on the assets. In case of loss in special pool, the loss will be borne by the Special poolmembers. The net return on the pool is arrived at after deduction of direct costs from the gross return earned on the pool.From the net return, profit is paid to the Mudarib in the ratio of the Mudarib’s equity in the pool to the total pool. The balancerepresents the distributable profit.
Treasury Pools are managed on the basis of Musharakah / Mudarabah, wherein UBL Ameen and Financial Institutions shareactual return earned by the pool according to pre-defined profit sharing ratio.
The General pool consists of all other remunerative deposits. The net return on the pool is arrived at after deduction of directcosts from the gross return earned on the pool. Currently, the entire net return is considered as distributable profit withoutpaying any profit to the Mudarib on its equity.
At December 31, 2015
Net book value at December
31, 2015
At January 1, 2016
At December 31, 2016
At January 1, 2016
At December 31, 2016
Net book value at December
31, 2016
At January 1, 2015
At December 31, 2015
At January 1, 2015
75
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
2016 201544.6 Deployment of Mudaraba based deposits by class of business
Chemical and pharmaceuticals 660,178 665,712 Agri business 1,683,908 833,043 Textile 1,878,541 3,030,148 Sugar - 70,175 Financial 15,640,744 5,337,150 Food industries 511,211 288,707 Engineering 506,268 320,229 Hotel 3,213 8,632 Plastic 33,347 106,876 Individuals 370,273 194,845 Production and Transmission of energy 9,280,999 4,273,464 Government of Pakistan Securities 5,190,245 13,258,920 Others 181,592 159,832
35,940,519 28,547,733
45. YEMEN OPERATIONS
Out
The Mudarib’s share for the year ended December 31, 2016 is Rs. 505.96 million (28.6% of distributable profit). Of this, anamount of Rs. 136.58 million (27% of Mudarib share) was distributed back to depositors as Hiba. The rate of profit earned onaverage earning assets was 6.29% per annum and the rate of profit paid on average deposits was 3.96% per annum.
Throughout the year, political and economic condition in Yemen continued to remain turbulent. International players havebeen making continuous efforts to resolve the long reeling conflict, however, no resolution has been reached so far. InSeptember 2016, the Central Bank Headquarters was moved from the capital city of Sana’a to the port city of Aden.However core operations are still run by Central Bank - Sana’a as relocation to Aden is still in abeyance.
As a result of prevailing political and economic crisis, liquidity crisis is getting aggrevated both in terms of foreign and localcurrencies. Banking and financial services have been negatively impacted due to the prevailing crises and corporations,traders and public at large continue to be affected by the ongoing challenging situation on ground. During the crisis, in theinitial phase of the war, the Central Bank of Yemen kept the exchange parity unchanged, however in April 2016 the CentralBank devalued Yemeni Riyal and revised the US$ to Riyal parity from YER 214.89 to YER 250.25 (16.45% devaluation).Despite this devaluation the Yemeni Riyal continued to lose its value in the open market and is currently traded at a furtherlower parity.
Ever since the crises started, the Bank’s risk is being managed very closely with a clear strategy to re-risk the Yemen Bookas far as practicable. As a result, the bank has been able to reduce its clean exposure substantially. Going forward, thestrategy is to continuously reduce bank’s credit exposure without executing any new business and continue maintaininginvestments in local currency sovereign bonds.
To support the team in Yemen branches, the Camp Office situated in Karachi, Pakistan is in continuous coordination with the team in Yemen to ensure that they are provided unstinted support and assistance whenever required.
The management has taken appropriate measures to support the sustainability of the Bank’s business as may be required inthe prevalent circumstances and is of the view that as such there is no issue on going concern on UBL Yemen operations inthe foreseeable future.
Out of the 3 branches in Yemen, UBL is currently operating with 2 branches in Sana’a and Hodeida under close supervisionof executives at the Business Continuity Plan (BCP) office, Karachi. The Branch in Aden is closed due to restricted access tothe premises in which it is located. Customers of Aden branch are being served from the other two branches.
76
NOTES TO AND FORMING PART OF THE UNCONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2016
46. NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE
47. DATE OF AUTHORIZATION
These financial statements were authorized for issue on February 17, 2017 by the Board of Directors of the Bank.
48. GENERAL
48.1 Comparatives
- Bai Muajjal of Rs. 5,391.120 million (2014: nil) has been reclassified from Lending to financial institutions to Investments.- Assets given on Ijarah of Rs. 695.380 million (net) (2014: Rs 706.341 million) have been reclassified from Operating
fixed assets to Advances.- Islamic receivables carried in Other assets of Rs. 87.510 million (2014: Rs 954.723 million) have been reclassified
to Advances.-
No other major reclassifications were made during the period.
48.2
Wajahat Husain Amin Uddin Zameer Mohammed Choudrey, CBE Sir Mohammed Anwar Pervez, OBE, HPk President & Director Director ChairmanChief Executive Officer
The Board of Directors in its meeting held on February 17, 2017 has proposed a cash dividend in respect of 2016 of Rs.4per share (2015: Rs. 4 per share). In addition, the Directors have also announced a bonus issue of nil (2015: nil). Theseappropriations will be approved in the forthcoming Annual General Meeting. The unconsolidated financial statements for theyear ended December 31, 2016 do not include the effect of these appropriations which will be accounted for in theunconsolidated financial statements for the year ending December 31, 2017.
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated financialstatements for the purposes of better presentation.
SBP has issued circular (BPRD circular letter 5 of 2016) regarding the classification of Islamic financing and related assets.Accordingly, prior year numbers have been reclassified as follows:
Provision reversal amounting to Rs. 1.274 million (2014: charge of Rs. 12.364 million) has been reclassified from Other provisions to Provision against loans and advances.
77
1) Particulars of investments held in listed companies and Modaraba
Investee
Number of shares /
certificates held
Paid up value per share / certificate
Total paid up value
Cost
(Rupees)Available for sale securities
Investments in ordinary shares
Agritech Limited 15,975,876 10.00 159,759 559,228 Aisha Steel Mills Limited 868,000 10.00 8,680 9,328 Amreli Steels Limited 275,000 10.00 2,750 18,662 DP World 6,926 2,009.66 13,919 18,837 Engro Corporation Limited 1,500,000 10.00 15,000 468,463 Engro Fertilizers Limited 6,669,000 10.00 66,690 603,631 Fatima Fertilizer Company Limited 22,400,000 10.00 224,000 569,358 Fauji Cement Limited 16,500,000 10.00 165,000 578,292 Fauji Fertilizer Company Limited 17,750,000 10.00 177,500 1,996,503 Fauji Fertilizer Bin Qasim Limited 46,699,000 10.00 466,990 1,894,542 Ghani Gases Limited 15,235,320 10.00 152,353 369,596 Ghani Global Glass Limited 2,996,000 10.00 29,960 50,686 Gharibwal Cement Limited 12,135,500 10.00 121,355 575,078 Hub Power Company Limited 38,189,500 10.00 381,895 1,819,518 Hum Network Limited 6,000,000 10.00 60,000 97,278 Indus Dyeing Manufacturing Company Limited 484,890 10.00 4,849 533,428 Kohat Cement Limited 49,600 10.00 496 13,499 Kohinoor Spinning Mills Limited 6,290,000 10.00 62,900 108,744 Kot Addu Power Company Limited 79,422,000 10.00 794,220 3,688,420 Mughal Steel Limited 140,500 10.00 1,405 11,609 Nishat Chunian Power Limited 18,306,500 10.00 183,065 349,216 Oil & Gas Development Company Limited 1,210,000 10.00 12,100 185,429 Pakistan Telecommunication Company Limited 28,136,997 10.00 281,370 597,349 Pakistan Petroleum Limited 500,000 10.00 5,000 86,929 Pakistan State Oil Limited 300,000 10.00 3,000 123,816 Saif Power Limited 10,324,500 10.00 103,245 342,358 Soneri Bank Limited 22,291,500 10.00 222,915 337,310
16,007,107
Investments in Real Estate Investment TrustDolmen City REIT 41,690,000 10.00 416,900 458,590
Investments in preference shares
Masood Textile Mills Limited 3,666,668 10.00 36,667 36,667 JSC Alliance Bank 95,720 3,510 335,969 335,969
372,636
Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements
(Rupees in '000)
2) Particulars of investments held in unlisted companies
InvesteePercentage of holding
(%)
Number of shares /
certificates held
Break-up value per
share
Paid up value per
shareCost
Based on audited
accounts as at
Name of Chief Executive
Rupees Rupees (Rupees
'000)
Shareholding more than 10%
Pakistan Agricultural Storage & Services Corporation Limited
18.3% 5,500 216,939 1,000 5,500 31-Mar-16 Capt (R) Tariq Masud
Cinepax Limited 14.6% 5,037,200 15 10 50,372 30-Jun-16 Hashim Raza
Shareholding upto 10%
World Bridge Connect Inc. 9.9% 1,979,295 - - 77,606 Not available Not available
First Women Bank Limited 2.7% 7,698,441 9 10 21,100 31-Dec-15 Ms. Tahira Raza
National Institutional Facilitation Technologies (Pvt.) Limited
9.1% 2,266,607 33 10 1,526 30-Jun-16 Haider Wahab
National Investment Trust Limited 8.3% 79,200 9,088 100 100 30-Jun-16 Shahid Ghaffar
News-VIS Credit Information Services (Pvt.) Limited
4.7% 32,500 - 10 325 30-Jun-16 Faheem Ahmad
Techlogix International Limited 4.4% 4,455,829 4 - 50,702 31-Dec-15 Mr.Salman Akhtar & Kewan Khawaja (Co Chief Executive)
Kay Textile Mills Limited Not available 377,800 - - 3,778 Not available Not available
SME Bank Limited 1.7% 3,975,003 1 10 26,950 31-Dec-15 Ihsan ul Haq Khan
SWIFT 0.0% 25 387,225 13,825 2,905 31-Dec-15 Gottfried Leibbrandt
MasterCard Incorporated 0.0% 461 547 - - 31-Dec-15 Ajay Banga
The Benefit Company B.S.C 0.4% 216 - 27,938 2,220 31-Dec-13 Abdul Wahid Janahi
243,084
Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements
3) Particulars of bonfs
PrincipalInterest/
Profit(Rupees in
'000)
Available for sale securities
Government of Pakistan Sukuk Government of Pakistan Ijarah Sukuk - XV Maturity Bi-annually Cut off yielf of 6M T-Bills minus 200 bps 409,000 Government of Pakistan Ijarah Sukuk - XVI Maturity Bi-annually Cut off yielf of 6M T-Bills minus 50 bps 4,000,000 Islamic Republic of Pakistan 2019 - Sukuk Maturity Bi-annually 6.750% 2,092,052 Islamic Republic of Pakistan 2021 - Sukuk Maturity Bi-annually 5.500% 732,219
7,233,271
Government of Pakistan - EurobondsIslamic Republic of Pakistan - 2017 - Eurobond At Maturity Bi-annually 6.875% 4,168,154 Islamic Republic of Pakistan - 2019 - Eurobond At Maturity Bi-annually 7.250% 2,013,091 Islamic Republic of Pakistan - 2024 - Eurobond At Maturity Bi-annually 8.250% 7,349,529 Islamic Republic of Pakistan - 2025 - Eurobond At Maturity Bi-annually 8.250% 523,013
14,053,787
Foreign bonds - sovereignAngola 2019 At Maturity Quarterly 7.000% 481,577 Arab Republic of Egypt 2020 At Maturity Bi-annually 5.750% 778,628 Arab Republic of Egypt 2025 At Maturity Bi-annually 5.875% 313,958 Government of Dubai Bond 2020 At Maturity Bi-annually 7.750% 1,606,850 Government of Dubai Bond 2022 At Maturity Bi-annually 6.450% 1,408,165 Kingdom of Bahrain Bond 2020 At Maturity Bi-annually 5.500% 1,099,823 Kingdom of Bahrain Bond 2026 At Maturity Bi-annually 7.000% 834,141 Kingdom of Jordan 2026 At Maturity Bi-annually 6.125% 730,183 Republic of Ghana 2017 At Maturity Bi-annually 8.500% 281,102 Republic of Kenya At Maturity Bi-annually 5.875% 1,586,051 Republic of Nigeria 2023 At Maturity Bi-annually 6.375% 1,036,785 Republic of Sri Lanka Bond 2020 At Maturity Bi-annually 6.250% 1,112,473 Republic of Sri Lanka Bond 2021 At Maturity Bi-annually 6.250% 824,530 Republic of Sri Lanka 2022 At Maturity Bi-annually 5.875% 1,344,232 Republic of Sri Lanka 2026 At Maturity Bi-annually 6.825% 522,175 Republic of Turkey At Maturity Bi-annually 6.250% 870,513 Republic of Vietnam At Maturity Bi-annually 4.800% 313,392 State of Qatar Bond 2030 At Maturity Bi-annually 9.750% 2,676,084 Turkey Sukuks 21 At Maturity Bi-annually 4.251% 41,839 United Republic of Tanzania At Maturity Bi-annually 7.250% 1,388,375
19,250,876
Foreign bonds - othersBank of Ceylon 2017 At Maturity Bi-annually 6.875% 494,945 CBQ Finance 2019 At Maturity Bi-annually 7.500% 479,724 Dubai Electricity and Water Authority 2018 At Maturity Bi-annually 3.000% 3,345,949 Dubai Electricity and Water Authority 2020 At Maturity Quarterly 7.375% 1,521,252 EMAAR 2019 At Maturity Bi-annually 6.400% 905,811 Emirates Airlines 2023 At Maturity Bi-annually 3.875% 424,570 Ezdan Sukuk Co Ltd At Maturity Bi-annually 4.375% 130,743 IPIC GMTN 2022 At Maturity Bi-annually 5.500% 207,805 Jebel Ali Free Zone Authority 2019 At Maturity Bi-annually 7.000% 984,165 MAF GLOBAL 2019 At Maturity Quarterly 5.250% 507,411 PTA Bank 2018 At Maturity Bi-annually 6.375% 300,485 Qatari Diar QSC - 2020 At Maturity Bi-annually 5.000% 197,710
9,500,569
Annexure 'A' as referref to in note 9.8 of the Bank's unconsolifatef financial statements
InvesteeTerms of Refemption
Rate of Interest/ProfitOutstanding
Amount
Annexure 'A' as referref to in note 9.8 of the Bank's unconsolifatef financial statements
3) Particulars of bonds (Contd.)
PrincipalInterest/
Profit(Rupees in
'000)
Held to maturity securities
Government of Pakistan - Eurobonds
Islamic Republic of Pakistan - 2017 - Eurobond At Maturity Bi-annually 6.875% 4,596,408 Islamic Republic of Pakistan - 2024 - Eurobond At Maturity Bi-annually 8.250% 1,777,654 Islamic Republic of Pakistan - 2025 - Eurobond At Maturity Bi-annually 8.250% 523,014
6,897,076
Government of Pakistan Sukuk At Maturity Bi-annually 5.500% 683,000
SukuksAl Baraka Bank (Pakistan) Limited Bi-annually Bi-annually 6M KIBOR plus 125bps 178,571 B.R.R Guardian Modaraba Monthly Monthly Deferred interest installment @ 1 month
KIBOR13,122
Fatima Fertilizer Company Limited Bi-annually Bi-annually 6M KIBOR plus 110bps 852,000 K-Electric Limited Bi-annually Quarterly 3 month KIBOR plus 100 bps 2,500,000 Neelum Jehlum Hydropower Company (Pvt) Limited Bi-annually Bi-annually 6M KIBOR plus 113bps 3,575,000 Pakistan International Airlines Limited* Bi-annually Bi-annually 6 month KIBOR plus 175 bps 890,000 Sitara Peroxide Limited Monthly Monthly 1 Months KIBOR plus 100 bps 118,110 Sui Northern Gas Pipelines Limited Bi-annually Bi-annually 6M KIBOR plus 110bps 586,128 WAPDA Bonds - Sukuk II At Maturity Bi-annually 6M KIBOR minus 25bps 8,447 WAPDA Bonds - Sukuk III At Maturity Bi-annually 6M KIBOR plus 100bps 303,572
9,024,950
Foreign bonds - sovereignArab Republic of Egypt At Maturity Bi-annually 5.875% 313,928 Arab Republic of Egypt 2020 At Maturity Bi-annually 5.750% 779,020 Bahrain 2026 At Maturity Bi-annually 7.000% 834,141 Kingdom of Jordan 2026 At Maturity Bi-annually 6.125% 730,570 Qatar Government Bonds 2030 At Maturity Bi-annually 9.750% 1,015,183 Republic of Kenya At Maturity Bi-annually 5.875% 811,257 Republic of Sri Lanka 2020 At Maturity Bi-annually 6.250% 261,237 Republic of Sri Lanka 2022 At Maturity Bi-annually 5.875% 208,142 Republic of Sri Lanka 2025 At Maturity Bi-annually 6.850% 522,696 Republic of Sri Lanka 2026 At Maturity Bi-annually 6.825% 522,698 Republic of Tanzania At Maturity Bi-annually 7.250% 205,476 Republic Of Turkey At Maturity Bi-annually 6.250% 362,351 Turkey Sukuk 21 At Maturity Bi-annually 4.251% 41,835
6,608,534
Foreign securities - othersEzdan Sukuk Co Ltd At Maturity Bi-annually 4.375% 130,743 JSC Alliance Bank - US $ Discount Bonds At Maturity Quarterly 10.500% 226,866
357,609 JSC Alliance Bank - US $ Recovery Notes At Maturity N/A N/A 322,399
680,008
*These sukuks are classified, however no provision has been maintained as these are secured by Government of Pakistan guarantee.
4) Particulars of Debentures
Principal Interest(Rupees in
'000)
Private SectorEffef Industries Limited Overdue Overdue 11.00% 1,017 Effef Industries Limited Overdue Overdue 14.00% 379 Khyber Textile Mills Limited Overdue Overdue 14.00% 394 Morgah Valley Limited Overdue Overdue 11.00% 316 Morgah Valley Limited Overdue Overdue 14.00% 160
2,266
InvesteeTerms of Redemption
Rate of InterestOutstanding
Amount
InvesteeTerms of Redemption
Rate of Interest/ProfitOutstanding
Amount
5) Particulars of investments in term finance certificates
Investee No. of
Certificates held
Paid up value per certificate
Total Paid up value
Outstanding Amount
Name of Chief Executive
(Rupees) (Rupees in '000)Available for sale securities
Unlisted
Azgard Nine Limited 12,944 5,000 64,720 64,720 Ahmed H. ShaikhFaysal Bank Limited 46,000 5,000 230,000 114,770 Nauman AnsariPakistan International Airlines Corporation TFC* 1,700 5,000 8,500 8,498 Nasser N S Jaffer
187,988 Listed
Azgard Nine Limited 60,000 5,000 300,000 97,615 Ahmed H. ShaikhNIB Bank Limited TFC 30,000 5,000 150,000 149,850 Atif R. BokhariBank Alfalah Limited TFC 24,200 5,000 121,000 120,831 Atif Bajwa
368,296
556,284
Held to Maturity
Unlisted
Pakistan International Airlines Corporation TFC* 408,867 5,000 2,044,335 1,659,690 Nasser N S JafferSecurity Leasing Corporation Limited 40,000 5,000 200,000 30,807 Mohammed Khalid AliFaysal Bank Limited 24,000 5,000 120,000 59,880 Nauman AnsariAl-Azhar Textile Mills Limited 14 774,670 10,845 5,418 Mirza Aurangzeb Baig Bentonite (Pakistan) Limited 14 268,894 3,765 3,417 Khalid ShakeelCast-N-Link Products Limited 16 1,064,039 17,025 2,549 Nisar AhmedIndependent Media Corporation 20,000 5,000 100,000 35,000 Mir Shakil Ur Rahman Standard Chartered Bank Pakistan 75,000 5,000 375,000 375,000 Shahzad DadaAzgard Nine Limited 12,297 5,000 61,485 61,115 Ahmed H. ShaikhAskari Commercial Bank Limited 120,000 5,000 600,000 599,520 Syed Majeedullah HusainiWAPDA 300,000 5,000 1,500,000 1,071,430 Zafar Mahmood
3,903,826 Listed
Bank Alfalah Limited 48,600 5,000 243,000 242,660 Atif BajwaNIB Bank Limited 30,000 5,000 150,000 149,850 Atif R. BokhariSoneri Bank Limited 83,833 5,000 419,165 418,997 Muhammad Aftab Manzoor
811,507
4,715,333
*These TFCs are classified, however no provision has been maintained as these are secured by Government of Pakistan guarantee.
6) Particulars of participation term certificates
(Rupees) (Rupees in '000)
Morgah Valley Limited 16 29,250 468,000 436 Air Marshal (Retd.) A. Rahim KhanZamrock Fibers Glass Limited 12 32,833 394,000 2,359 Mr. S. Zamir Syed
2,795
Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements
InvesteeNo. of
Certificates held
Paid up value per certificate
Total Paid up value
Outstanding Amount
Name of Chief Executive
7) Quality of investments classified as available for sale (AFS)
Investee Market Value Credit Rating(Rupees in '000)
Investments in ordinary shares
Agritech Limited 202,574 UnratedAisha Steel Mills Limited 13,654 UnratedAmreli Steels Limited 18,312 UnratedDP World 12,685 Baa3Engro Corporation Limited 474,135 AAEngro Fertilizers Limited 453,359 AA-Fatima Fertilizer Company Limited 826,336 AA-Fauji Cement Limited 743,820 UnratedFauji Fertilizer Company Limited 1,852,568 UnratedFauji Fertilizer Bin Qasim Limited 2,391,456 UnratedGhani Gases Limited 399,622 UnratedGhani Global Glass Limited 70,226 UnratedGharibwal Cement Limited 606,290 UnratedHub Power Company Limited 4,715,639 AA+Hum Network Limited 89,940 A+Indus Dyeing Manufacturing Company Limited 349,950 A+Kohat Cement 14,465 UnratedKohinoor Spinning Mills Limited 43,087 UnratedKot Addu Power Company Limited 6,258,454 AA+Mughal Steel Limited 12,386 UnratedNishat Chunian Power Limited 1,015,645 A-Oil & Gas Development Company Limited 200,074 UnratedPakistan Telecommunication Company Limited 471,055 UnratedPakistan Petroleum Limited 94,090 UnratedPakistan State Oil Company Limited 130,263 AASaif Power Limited 367,139 A+Soneri Bank Limited 393,445 AA-
22,220,669
Investments in Real Estate Investment TrustDolmen City REIT 453,170 AM2
Investee Cost Credit Rating(Rupees in '000)
Investments in preference shares
Masood Textile Mills Limited 36,667 UnratedJSC Alliance Bank 335,969 Caa2
372,636
Investments in unlisted shares
Shareholding more than 10%Pakistan Agricultural Storage & Services Corporation Limited 5,500 UnratedCinepax Limited 50,372 Unrated
Shareholding upto 10%World Bridge Connect Inc. 77,606 UnratedFirst Women Bank Limited 21,100 A-National Institutional Facilitation Technologies (Pvt.) Limited 1,526 UnratedSME Bank Limited 26,950 BKay Textile Mills Limited 3,778 unratedTechlogix International Limited 50,702 unratedSWIFT 2,905 unratedNational Investment Trust Limited 100 AM2+News-VIS Credit Information Services (Pvt.) Limited 325 unratedMasterCard Incorporated - A2The Benefit Company B.S.C 2,220 unrated
243,084
Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements
7) Quality of investments classified as available for sale (AFS)
Particulars Market Value Credit Rating(Rupees in '000)
Federal Government SecuritiesMarket Treasury Bills 73,041,975 Unrated - Government SecuritiesPakistan Investment Bonds 295,568,204 Unrated - Government Securities
368,610,179
Government of Pakistan Ijarah SukukGovernment of Pakistan Ijarah Sukuk 7,466,264 Score7
Government of Pakistan - Euro bondIslamic Republic of Pakistan - 2017 - Euro Bond 4,303,624 Score7Islamic Republic of Pakistan - 2019 - Euro Bond 2,088,931 Score7Islamic Republic of Pakistan - 2024 - Euro Bond 7,652,550 Score7Islamic Republic of Pakistan - 2025 - Euro Bond 574,090 Score7
14,619,195
Foreign bonds - sovereignAngola 2019 473,585 Score5,6Arab Republic of Egypt 2020 774,739 Score6Arab Republic of Egypt 2025 303,341 Score6Government of Dubai Bond 2020 1,697,484 Score2Government of Dubai Bond 2022 1,504,818 Score2Kingdom of Bahrain Bond 2020 1,113,897 Score4Kingdom of Bahrain Bond 2026 868,461 Score4Kingdom of Jordan 2026 706,599 Score5Republic of Ghana 2017 282,494 Score5,6Republic of Kenya 1,618,646 Score6Republic of Nigeria 2023 983,432 Score5,6Republic of Sri Lanka Bond 2020 1,133,262 Score6Republic of Sri Lanka Bond 2021 807,452 Score5,6Republic of Sri Lanka 2022 1,333,871 Score6Republic of Sri Lanka 2026 479,900 Score6Republic of Turkey 822,023 Score4Republic of Vietnam 309,558 Score5,6State of Qatar Bond 2030 2,726,164 Score3Turkey Sukuks 21 40,637 Score4United Republic of Tanzania 1,438,235 Score6
19,418,597
Foreign bonds - othersBank of Ceylon 2017 495,898 B+CBQ Finance 2019 494,032 A2Dubai Electricity and Water Authority 2018 3,383,201 BBB+Dubai Electricity and Water Authority 2020 1,624,155 BBB+EMAAR 2019 91,005 Baa3Emirates Airlines 2023 1,312,874 UnratedEzdan Sukuk Co Ltd 129,926 Ba1IPIC GMTN 2022 202,600 aa2Jebel Ali Free Zone Authority 2019 1,016,413 BBB-MAF GLOBAL 2019 524,477 UnratedPTA Bank 2018 304,028 BBQatari Diar QSC - 2020 201,633 Unrated
9,780,241
Term finance certificates
ListedAzgard Nine Limited 97,615 DefaultedBank Alfalah Limited TFC 124,007 AA-
NIB Bank TFC 151,552 A+373,174
UnlistedAzgard Nine Limited 64,720 DefaultedFaysal Bank Limited 115,700 AAPakistan International Airlines Corporation TFC 8,498 Defaulted
188,918
Annexure 'A' as referred to in note 9.8 of the Bank's unconsolidated financial statements
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
1 M/S Mehran Filling Station Malakand Road Sari Bahlol Takht Bhai Distt Mardan
Aziz Ur Rehman 16102-5371249-3 Habib ur Rehman 1,720 - 1,299 1,299 - - - 3,019 - - 1,299 1,299 - - - 1,299
2 Al Abid Silk Mills Ltd A-39 Manghopir Road S.I.T.E. , Karachi
Naseem A. SattarAzim Ahmed SattarQamar MashkoorMuhammad Sajid HafeezMst. Adia NaseemMrs. Sadaf NadeemS. M. Jawad Azam
42301-0840043-142301-0912143-9
NANA
42301-0783384-442301-0878886-842201-8147445-3
Sheikh Abdul Sattar Naseem A. Sattar NANA Naseem A. Sattar Nadeem Younus Syed Muhammad Farooq Azam
550,026 - 53,304 53,304 - - - 603,330 550,026 - 53,304 53,304 - - - 603,330
3 Blue Star Spinning Mills Ltd 1) H/ No. 10-A, Mohallah Rehman Society Bahawalpur.2) 30 Km, Hasilpur Road, Lal Sohanra Bawalpur
(1) Ch. Ijaz Safdar(2) Ch. Qaiser Munir(3) Mst. Mahreen Safdar (4) Ch. Fazal Ahmed(5) Ch. Umair Hameed (6) Mrs. Jamila Safdar(7) Ch. Faisal Munir
31202-5578881-531202-9087688-131202-1632473-6
NANA
31202-8253395-033100-3413361-5
Ch. Safdar HussainCh. Munir AhmedCh. Qaiser MunirCh. Hukam DinCh. Abdul HameedCh. Safdar HussainCh. Munir Ahmed
276,407 28,267 36,551 64,818 - - - 341,225 276,407 28,267 36,551 64,818 - - - 341,225
4 Genertech Pakistan Ltd 49Km, Lahore- Multan Road, Near Bhai Pheru, District, Kasur
(1) Jahangir Elahi, (2) Tanvir Elahi(3) Alamgir Elahi(4) Aamir Jahangir(5) Ahmed Jahangir
35202-2561094-5NANA
35202-0676798-735202-5010274-5
Sheikh Ehsan ElahiNANAJahangir ElahiJahangir Elahi
154,429 - 184,702 184,702 - - - 339,131 154,429 - 184,702 184,702 - - - 339,131
5 Jannat Industries Jannat House, Gojra Road, Civil Line, Jhang
Mushtaq AhmedAkhtar HussainAshfaq M. Khan
35200-1435244-533202-1432066-333202-5959524-7
Muhammad Khan 148,751 - 6,276 6,276 - - - 155,027 148,751 - 6,276 6,276 - - - 155,027
6 Saad Oriental Carpets 427-428, Block G-4, Johar Town, Lahore
Mian Ijaz-ur-RehmanMian Anees-ur-RehmanMian Ateeq-ur-Rehman
35202-3807763-335202-9214582-735202-6803404-1
Mian Abdul rehman 188,074 - 105,535 105,535 - - - 293,609 8,074 - 105,535 105,535 - - - 113,609
7 Nawaz Ghee & Oil Mills Ltd 19- Islamia Club Building, Khyber Bazar Peshawar CityPlot # 115, L-5, Industrial Estate, Gadoon Amazai, Peshawar
Al- Haj Rab Nawaz KhanNaveeda NawazArbab MuhammadNawaz Khan(Late)Mrs. Mahmood Begum(Late)
17301-6397377-117301-0663158-217301-9669283-5
s/o Mr. Nawaz Khan(late)w/o Rab Nawaz Khans/oHaji Rab Nawaz Khan
25,595 11,613 64,128 75,742 - - - 101,336 - 11,208 64,128 75,336 - - - 75,336
8 Bhatti Spinning Mills Pvt Ltd 4 Km, Raiwand Road Kausar
Muhammad Iqbal BhattiMaqbool Ahmed BhattiMaqsood Ahmed BhattiKhalid Mehmood
35202-7936106-1 35202-7363588-3 35202-
3032294-1 35202-5703019-7
Muhammad Din BhattiMuhammad Din BhattiMuhammad Din BhattiRehmat Ali
61,800 - 49,101 49,101 - - - 110,901 7,300 - 49,101 49,101 - - - 56,401
9 Fashionwear Pvt Ltd F-200,S.I.T.E Karachi
Waqar Haider ButtSaqib Haider ButtAamir Haider ButtMs. Munawar Jabeen
42301-0978189-742301-0705547-542301-0978190-742301-0887543-2
Ghulam Haider ButtWaqar Haider ButtWaqar Haider ButtWaqar Haider Butt
84,336 - 47,589 47,589 - - - 131,925 - - 46,925 46,925 - - - 46,925
10 Qureshi Rice Mills Jhat Pat Road, Usta Muhammad
Haji Sohara Khan 53404-6375116-7 Haji Hazar Khan 19,950 - 33,528 33,528 - - - 53,479 5,195 - 33,528 33,528 - - - 38,724
At the beginning Written off
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
11 Kashir Textile Mils Tld Office No. 1, P-208, Tikka Gali No. 1, Yarn Market, Faisalabad
Mian Zahid AslamMian Abid AslamMian Hamid AslamImran ZahidFarhan AbidMst. Zaib-un-Nisa HamidUsman Zahid
33100-0613745-733100-6916435-933100-0641681-733100-5146568-533100-0164574-733100-0615377-433100-0708998-9
Mian M. AslamMian M. AslamMian M. AslamMian Zahid AslamMian Abid AslamMian Hamid AslamMian Zahid Aslam
91,257 - 23,670 23,670 - - - 114,927 - - 23,670 23,670 - - - 23,670
12 Quality Export Inrternational 4/90 Sector 21, Korangi Industrial Area Karachi
Mr. Atta-ul-Haq Siddiqui 42201-0374874-9 Muhammad Sadiq 31,756 - 19,647 19,647 - - - 51,403 - - 19,635 19,635 - - - 19,635
13 Chistia Sugar Mills Ltd 187-A Scotch Corner, Upper Mall, Lahore
Muhammad Masood TahirFaisal Jawad BhattiRehmat AliWaseem Qaiser BhattiRahat Shakeel Bhatti
38403-2266601-935202-2619201-335202-2916919-135202-5501486-935202-2463651-6
Rab NawazShakeel Mahmood BhattiMuhammad TufailAshiq Muhammad BhattiShakeel Mahmood Bhatti
110,258 - 19,599 19,599 - - - 129,857 - - 19,599 19,599 - - - 19,599
14 Dost Sons Cotton Mills Pvt Ltd 101, Chappal Plaza, Hasrat Mohani Road Karachi
Jamal IftikharZahid Iftikhar
42301-0932772-342301-0932771-9
Iftikhar AhmedIftikhar Ahmed
13,000 - 19,279 19,279 - - - 32,279 - - 19,279 19,279 - - - 19,279
15 Plastic Pack Pvt Ltd 3 & 4, Society Apartment, 1St Floor, P.E.C.H.S. Block-2, Karachi
Dr. Ishtiaq AhmedArshad Javaid KhawajaRehmatullah GhouriMuhammad Shabbir Chaudhry
42201-8219476-9246-49-330486517-27-266558
Lal HussainMuhammad Sanaullah KhawajaDr. Asadullah Khan Ghouri
3,400 704 12,526 13,230 - - - 16,630 3,400 704 12,526 13,230 - - - 16,630
16 Chevrolet Johar Town Motors 410, G-Iv, Ma Johar Town Lahore
Mian Saeed-ur-Rehman 35202-1039847-7 Mian Abdul rehman 28,500 - 16,359 16,359 - - - 44,859 - - 16,359 16,359 - - - 16,359
17 Sartaj Polysacks 132/3, Industrial Area, Kot Lakhpat Lahore
Noman Kabir 35202-3963932-7 Mian Abdul Kabir 102,191 - 8,180 8,180 - - - 110,371 4,999 - 8,180 8,180 - - - 13,179
18 New Al-Hilal Corporation 5.5 Km, Raiwind Road, Tokhar Niaz Baig, Lahore
Sh. Shaukat Ali 35202-1215674-3 Sh. Muhammad Siddique 23,625 - 2,234 2,234 - - - 25,859 6,428 - 2,234 2,234 - - - 8,662
19 Travel Tips International 714-Kamran Block, Allama Iqbal Town Lahore
Abdul RehmanTahir RehmanMrs. Shaheen RehmanMrs Musarat Zia-ul-Islam
35202-7003352-5 35202-5571794-1 35202-5800586-
8 276-52-442960
Fazal-ur-RehmanFazal-ur-RehmanAbdul RehmanZia-ul-Islam
977 - 5,628 5,628 - - - 6,605 977 - 5,628 5,628 - - - 6,605
20 Texto Products Pvt Ltd 16-Noor Estate, Shahrah-E-Faisal Karachi
Muhammad IrshadMrs. Ishrat JahanMuhammad ShamshadMrs. AlamgirahMrs. Jehan Tab
M.Tahheed 2,713 1,586 1,921 3,508 - - - 6,221 2,713 1,586 1,921 3,508 - - - 6,221
21 Arsel Enterprises 10 Commercial Zone, Dubai Chowk Ait Lahore
Rao Naveed AkhterRao Mubarik Ali
35202-2915061-535202-2925163-9
Habib KhanHabib Khan
42,000 - 5,476 5,476 - - - 47,476 - - 5,476 5,476 - - - 5,476
22 Amira Textile (Pvt) Ltd Off Manga Road, Riwind, Lahore
Muhammad Akram KhanShahid Akram KhanFaisal Akram KhanAmira Akram Khan
35201-2815241-935201-0669574-535201-0666582-635201-3256067-4
Abdul RaheemM. Akram KhanM. Akram KhanM. Akram Khan
39,502 - 5,216 5,216 - - - 44,718 - - 5,215 5,215 - - - 5,215
23 M. Iqbal Construction Company (Pvt) Ltd. C-28 Sector 11-B, North Karachi
Rao Muhammad Shakeel IqbalRao Muhammad Khaleel Iqbal
42000-0561720-9 Rao Muhammad IqbalRao Muhammad Iqbal
7,500 - 4,349 4,349 - - - 11,849 - - 4,149 4,149 - - - 4,149
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
24 Computer Touch Suit # 16, Third Floor, Hafeez Center Gulberg Lahore
Rana Nadeem HussainRana Mubeen Hussain
35201-9555048-935201-9544693-9
Rana Ghullam HussainRana Ghullam Hussain
9,000 - 3,890 3,890 - - - 12,890 - - 3,890 3,890 - - - 3,890
25 Usman Medicine Co. Police Line Road Multan
Ishtiaq Ahmed Bhatti 36302-0477517-5 Allah Datta Bhatti 4,107 - 3,589 3,589 - - - 7,697 - - 3,447 3,447 - - - 3,447
26 Mughal International House No.137, Gali No.13, Gulbahar No.2, Peshawar City, Peshawar
Mirza Shafqat Javed 17301-1412381-1 Mirza Abdul Wadadood 3,500 - 3,123 3,123 - - - 6,623 - - 3,123 3,123 - - - 3,123
27 Faridia Tradres Ghallan Mandi Main Bazar Sahiwal
Mr. Shahid Ahmad 36502-7652185-3 Muhammad Boota 6,250 - 3,248 3,248 - - - 9,498 - - 3,098 3,098 - - - 3,098
28 Abdul Mannan Moh Taous Khel Maneri Payan P.O Tehsil & District, Swabi
Abdul Mannan 16202-4547324-5 Shah Randaan 917 - 3,262 3,262 - - - 4,179 - - 3,079 3,079 - - - 3,079
29 Irfan Steel H # 14, St # 67, Elahi Park, Misri Shah, Lahore
Muhammad Irfan 35202-73434901-1 Muhammad Mushtaq 30,000 - 3,043 3,043 - - - 33,043 - - 3,043 3,043 - - - 3,043
30 Teejays Exclusive (Pvt) Ltd. 37-T Block-6, Pechs, Karachi
Tanveer Jamshed Jamshed Alam 675 2,246 - 2,246 - - - 2,921 575 2,246 - 2,246 - - - 2,821
31 Ramzan & Co. 2,596 - - - - - - 2,596 2,596 - - - - - - 2,59632 Azeem Rice Mills
Faisalabad Road, Near Bye Pass Chowk, Sheikhupura
Fazal AhmedKhadim HussainQamar NaeemSakhi MuhammadAnjum Nadeem
35404-2028827-535404-1561484-735404-2416930-535404-8705849-735404-0845118-9
M. IbrahimM. IbrahimFazal AhmedKhadim HussainFazal Ahmed
34,000 - 2,593 2,593 - - - 36,593 - - 2,593 2,593 - - - 2,593
33 Wahid Engineering Oden Street, Samandari Road, Faisalabad
Abdul Waheed 33102-1768635-9 Abdul Wahid 8,000 - 2,569 2,569 - - - 10,569 - - 2,569 2,569 - - - 2,569
34 Kraftsman Associates 51-D, Commercial Area "A" Defence Market, Karachi
Ali Ameer ShaikhAli Tanveer ShaikhAli Jawaid ShaikhMrs. Qurrat RizviMrs. Nazia ShaikhMrs. Surraya Mumtaz
35201-8879857-9 Mumtaz Manzoor 1,009 1,009 393 1,402 - - - 2,411 1,009 1,009 393 1,402 - - - 2,411
35 Al Rasheed Petrolium Khewat No.99 Mouza Dhomra Shumali Tehsil Tounsa Distt.D.G.Khan
Sardar Noman Sher QaisraniSardar Numair Khan Qaisrani
32103-5199299-735201-3398036-1
3,000 - 2,664 2,664 - - - 5,664 - - 2,351 2,351 - - - 2,351
36 Al Rasheed Cotton Khewat No.99 Mouza Dhomra Shumali Tehsil Tounsa Distt.D.G.Khan
Sardar Salman Sher QaisraniMst.Asia SalmanSardar Imran Sher KhanSardar Noman Sher
35201-9945895-735201-8872539-036302-3635521-932103-5199299-7
7,187 - 2,242 2,242 - - - 9,429 - - 2,242 2,242 - - - 2,242
37 Nizam Impex 63, Pma Building, Nicol Road, Karachi313, Chapal Plaza, 3Rd Floor, Hasrat Mohani Road, Karachi
Essa AbdullahMuhammad AslamMuhammad AminMuhammad SaleemMuhammad IqbalM. Arif
42201-1186759-542301-5995980-5
501-51-04424642201-9038990-342201-9529086-7
AbdullahEssa AbdullahA. RahmanA. RahmanA. RahmanA. Rahman
1,970 239 - 239 - - - 2,209 1,970 239 - 239 - - - 2,209
38 Shafi Uddin Shafiq 183-C, Gulshan Ravi Lahore
Shafi Uddin Shafique 35202-4633941-5 Salahuddin Ghazi 5,660 - 1,995 1,995 - - - 7,655 - - 1,925 1,925 - - - 1,925
39 Shakeel Rice Dealer Ghalla Mandi, Qila Didar Singh, Gujranwala.
Shabbir AhmedAmjad Shakeel
34101-2476426-334101-2424650-1
Bashir AhmedHabib Ahmed
5,000 - 1,998 1,998 - - - 6,998 - - 1,898 1,898 - - - 1,898
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
40 Shan Agro Chemicals 57-B Grain Market Vehari
Muhammad AjazMst.Farhat NaseemAbdul RaufMirza Ijaz Baig
36603-2213761-136603-5376210-436603-4543941-136603-1372140-1
Muhammad MukhtarMuhammad AjazAbdul LatifMirza Abdul Hayee
740 - 2,354 2,354 - - - 3,094 - - 1,894 1,894 - - - 1,894
41 Nauman Sadiq News Publication Pvt Ltd 15-L, Gulberg Iii, Lahore
Mahmood SadiqUzma Sadiq
35201-3651617-935201-5809407-2
Ghulam SadiqMahmood Sadiq
4,500 - 1,896 1,896 - - - 6,396 - - 1,796 1,796 - - - 1,796
42 Abdul Salam Cold Storage Mouza Mehmood Booti Bund Road, Lahore
Mr. Abdul Salam 35202-2881087-1 Haji Muhammad Yaqoob 24,500 - 1,679 1,679 - - - 26,179 - - 1,679 1,679 - - - 1,679
43 Syed Ahsan Ali Flat # C-2, Rabia Gardens Block-17, Gulsitan-E-Jauhar Karachi
Syed Ahsan Ali 42101-9531222-9 Syed Ale Ali 3,033 - 1,766 1,766 - - - 4,799 - - 1,599 1,599 - - - 1,599
44 Tariq & Conmpany Aliabad Road, Usta Muhammad, District Jafferabad, Balochistan
Abdul Rab Rind 53404-9323490-3 Ghulam Sarwar Khan Rind 5,008 - 1,537 1,537 - - - 6,545 - - 1,537 1,537 - - - 1,537
45 Muhammad Mushtaq H # 14, St # 67, Elahi Park, Misri Shah, Lahore
Muhammad Mushtaq 35202-9123076-9 Muhammad Ibrahim 15,000 - 1,520 1,520 - - - 16,520 - - 1,520 1,520 - - - 1,520
46 Zia Sports (Pvt) Ltd. Karimpura Opposite Dar Ul Shafqat, Maharaja Road, Sialkot
Sh. Arif MahmoodSh. Khurram KhalidSh. Usman Arif
34603-2266624-734603-3692092-134603-2278366-1
Sh. Muhammad FazalSh. Khalid MahmoodSh. Arif Mahmood
23,834 - 1,460 1,460 - - - 25,294 - - 1,460 1,460 - - - 1,460
47 Cheema Iron Store Kalaske, Tehsil Wazirabad, District Gujranwala
Muhammad Naseem 34104-1947672-9 Muhammad Sharif 4,000 - 1,397 1,397 - - - 5,397 - - 1,397 1,397 - - - 1,397
48 Rizwan Commission Shop Ghalla Mandi Jattan, Faizabad
Muhammad IshaqMrs. Tabasum IshqaMrs. Saleem AkhtarKinan ArshadMuhammad Asghar
35202-6068994-735202-1574924-435202-2746259-635402-0908312-735501-0114139-9
Muhammad IsmaeelMuhammad IshaqMuhammad HussainMuhammad ArshadMuhammad Siddique
2,700 - 1,592 1,592 - - - 4,292 - - 1,361 1,361 - - - 1,361
49 Mohiuddin Khan Mohiuddin Khan 1,330 5 - 5 - - - 1,335 1,330 5 - 5 - - - 1,33550 Pakistan Tarding
Ali Madad Rice Mill, Mandi Faizabad, Thesil & District Nankana
Zawar HussainAlamdar Hussain
35402-9279453-535402-9375308-5
475 - 1,950 1,950 - - - 2,425 - - 1,225 1,225 - - - 1,225
51 Abdul Khalique Abdul Khalique 763 410 - 410 - - - 1,173 763 410 - 410 - - - 1,17352 Masood Ur Rehman Khan
D-38, Block-8, Gulshan-E-Iqbal, Karachi
Masood Ur Rehman Khan 820 347 - 347 - - - 1,166 820 347 - 347 - - - 1,166
53 Wajid Salahuddin Flat # 201, 2Nd Floor, Al-Rehman Arcade, Sector 11-C/2, North Karachi
Wajid Salahuddine 42101-9531222-9 Muhammad salahudine 2,031 - 1,230 1,230 - - - 3,260 - - 1,160 1,160 - - - 1,160
54 Okara Gas Appliances Co. House No. 4, Mehboob Town G.T Road Okara
Rao Muhammad Iqbal 35302-2879491-1 Rao Khurshid Ali 3,000 - 1,254 1,254 - - - 4,254 - - 1,024 1,024 - - - 1,024
55 Muzafar Hussain Hydri Muzafar Hussain Hydri 992 - - - - - - 992 992 - - - - - - 992
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
56 Muhammad Yousuf Memon 1) Plot # F/36/5, Block-8, Clifton, Karachi2)63-B, Block-A, Adamjee Nagar, Khatiawar Co-Operative Housing Society, Karachi.
M. Yousuf Umer Bhai 899 88 - 88 - - - 987 899 88 - 88 - - - 987
57 Rehman Trading 2155 A/A, Ward No. X, Humayun Road,Near Chungi No.9 Multan.
Muhammad Kamran SiddiquiMuhammad Rizwan Siddiqui
322-77-963813322-80-858291
Muhammad Ali SiddiquiMuhammad Ali Siddiqui
11,499 - 985 985 - - - 12,484 - - 984 984 - - - 984
58 Textech 17/3, Luxmi Building, M.A. Jinnah Road, Karachi.
Khalid Zaheer 798 158 - 158 - - - 956 798 158 - 158 - - - 956
59 Malik M Akram Malik M Akram 925 - - - - - - 925 925 - - - - - - 92560 Abid Hussain Abid Hussain 887 - - - - - - 887 887 - - - - - - 88761 Abdul Razzak Abdul Razzak 885 - - - - - - 885 885 - - - - - - 88562 Waseem Brothers
House No. 889/Biii, Street No. 1 Mohallah Islam Colony Pakpattan
Muhammad Waseem 36402-0774755-1 SHEIKH SHOUKAT ALI 2,701 - 885 885 - - - 3,586 - - 885 885 - - - 885
63 Kasim Corp . 154/A Gali No. 12 Shershah Kyc.1/6/A Block 6, Pechs, Kyc.
Haji Abdul Aziz 42201-0405761-7 Kasim 515 347 - 347 - - - 862 515 347 - 347 - - - 862
64 Mughal Plywood & Flush Door Industries 13-Km Arifwala Road Sahiwal
Muhammad AslamMuhammad AkramMuhammad Ikram
36502-9792069-536502-8998039-536502-1803094-3
Khair DinKhair DinKhair Din
1,067 - 858 858 - - - 1,925 - - 857 857 - - - 857
65 Muhammad Iqbal Chishti Muhammad Iqbal Chishti 846 - - - - - - 846 846 - - - - - - 84666 Liaquat Ali Khan Liaquat Ali Khan 805 29 - 29 - - - 834 805 29 - 29 - - - 83467 Amin & Co.
Ghalla Mandi, Kalaske, Tehsil Wazirabad, District Gujranwala
Muhammad Amin 34104-8870501-7 Nasar Ullah Cheema 5,000 - 824 824 - - - 5,824 - - 824 824 - - - 824
68 Shahab Rice Mills 34-Km, Multan Road, Lahore
Irfan Ali Noor 35202-7320984-9 Noor Muhammad 13,200 - 801 801 - - - 14,001 - - 801 801 - - - 801
69 Uni Co Tading Co 77/C, Dh, 1St Floor, Main Korangi Road, Karachi
Akbar AliAbdul Rashid Memon
42201-0782490-1501-50-257478
Ghulam Hussain 665 134 - 134 - - - 800 665 134 - 134 - - - 800
70 Muhammad Ali Siddique Muhammad Ali Siddique 654 138 - 138 - - - 792 654 138 - 138 - - - 79271 Gss Trading Company
25-Hide Market, Sultanpura Road, Lahore.H # 86-87 St # 13 Jinnah Park Sultan Pura, Lahore
Muhammad GulzarSheikh Sheraz AhmadSajjad Ahmad
35202-3234146-335202-6051316-335202-0608407-3
Sheikh Abdul GhaniMuhammad GulzarMuhammad Gulzar
7,000 - 791 791 - - - 7,791 - - 791 791 - - - 791
72 Shams Corp. D-7, 3Rd Floor,Blessing Apartment, 1-B-2, Nazimabad, Karachi
Shahnaz Begum Masood Ahmed 764 - - - - - - 764 764 - - - - - - 764
73 Farooq Ahmed 84-B/1, Ghalib Market, Gulberg-Iii, Lahore
Farooq Ahmed 35202-0608841-7 Abdul Qayum 1,830 - 1,030 1,030 - - - 2,860 - - 760 760 - - - 760
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
74 Saleem Akhtar Saleem Akhtar 759 - - - - - - 759 759 - - - - - - 75975 Assr Traders
House # 421 Block-J Johar Town, Lahore.
Azad Pervaiz Butt 35202-2532425-5 Muhammad Abdullah Butt 2,961 - 791 791 - - - 3,752 - - 752 752 - - - 752
76 Rasheed Ahmed Rasheed Ahmed 723 4 - 4 - - - 727 723 4 - 4 - - - 72777 M.Sabir Govt Contractor
House # 363, B-4 Ansar Road Sahiwal
Muhammad Sabir 36502-1351625-9 405 - 713 713 - - - 1,118 - - 713 713 - - - 713
78 Tridul Corporation 4Th Floor, Karachi House, I.I. Chundrigar Road, Karachi
Abdullah A. Badat.M. Aslam KhanBaqi Mohammadally.Iqbal Akram
710 - - - - - - 710 710 - - - - - - 710
79 Salman & Company Room No. 30/31, Rafai Mrkaz Jodia Bazar Karachi
Yasmeen Sadruddin 684 - - - - - - 684 684 - - - - - - 684
80 Shafqat Ali Fayyaz Shafqat Ali Fayyaz 600 80 - 80 - - - 680 600 80 - 80 - - - 68081 Al Fazal Roller Flour Mills Muhammad Azeem Shah 544 136 - 136 - - - 680 544 136 - 136 - - - 680
82 Malik Ghulam Jilani Malik Ghulam Jilani 673 - - - - - - 673 673 - - - - - - 67383 Habib Ashraf Habib Ashraf 617 33 - 33 - - - 650 617 33 - 33 - - - 65084 Saima Corp.
316 Sabir Manzil, 3Rd Floor, Near Garden Cinema, Marston Road, Karachi
Irfan 516-90-374214 Muhammad Arif 647 - - - - - - 647 647 - - - - - - 647
85 Niaz Muhammad Shah Niaz Muhammad Shah 622 - - - - - - 622 622 - - - - - - 62286 Irfan Iftikhar Malik
Godown # 9-A, Rahim Road, Misri Shah, Lahore
Irfan Iftikhar Malik 35202-7968964-5 Iftikhar Hussain Malik 9,999 - 611 611 - - - 10,610 - - 610 610 - - - 610
87 Feroz Ali Khoja Feroz Ali Khoja 603 - - - - - - 603 603 - - - - - - 60388 Master Quran Company
38 Urdu Bazaar LahoreMuhammad Saeed 35202-9477438-5 Maula Baksh 6,000 - 603 603 - - - 6,603 - - 603 603 - - - 603
89 Baghdad Corporation Bahawalpur
Zahoor Ahmad 31303-2435849-3 Nazir Ahmad 944 - 897 897 - - - 1,841 - - 601 601 - - - 601
90 Sandhal Cotton 600 - - - - - - 600 600 - - - - - - 60091 Nayyar Perveen Nayyar Perveen 575 - - - - - - 575 575 - - - - - - 57592 K S G Mohiuddin & Sons
652, Bombay Bazar, Karachi
Ghulam 570 - - - - - - 570 570 - - - - - - 570
93 Habib Ashraf Habib Ashraf 565 - - - - - - 565 565 - - - - - - 56594 Pak Extbition Corp 563 - - - - - - 563 563 - - - - - - 56395 Hanif A Sattar Hanif A Sattar 557 - - - - - - 557 557 - - - - - - 55796 M. Ashraf A Habib M. Ashraf A Habib 556 - - - - - - 556 556 - - - - - - 55697 Ifra Seema Fatima Ifra Seema Fatima 554 - - - - - - 554 554 - - - - - - 55498 Khairul Bashar Khairul Bashar 540 - - - - - - 540 540 - - - - - - 54099 Sandad Shoes 503 35 - 35 - - - 538 503 35 - 35 - - - 538
100 Beco Engineering G.T Road, Gujranwala
Muhammad Dawood Asad 34101-2709841-1 Asad Ullah 904 - 641 641 - - - 1,544 - - 537 537 - - - 537
101 Sheikh Enterprises Mubarak Manzil, Jamshed Road, Karachi
Asif A. Shaikh 533 - - - - - - 533 533 - - - - - - 533
102 Paramount Toys 532 - - - - - - 532 532 - - - - - - 532103 Azam Sports
6-A Venus Housing Scheme Saroba Gardens,17-Km Ferozepur Road Lahore
Muhammad Azam 35201-2815241-9 Muhammad Hussain 1,500 - 531 531 - - - 2,031 - - 531 531 - - - 531
104 Khurshid Ali Khurshid Ali 523 - - - - - - 523 523 - - - - - - 523
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
105 Mohammad Haroon 31, Nawab Manzil, Adamjee Budda Bhai Road, Tahtae Compound, Karachi
Mohammad Haroon 511 - - - - - - 511 511 - - - - - - 511
106 Cannon Associate Engg Co 504 - - - - - - 504 504 - - - - - - 504
107 Mughal Agro Services 500 - - - - - - 500 500 - - - - - - 500108 Haji Javed Ahmed
Mouza Mujaldi Wala Tehsil & District Lodhran
Haji Javed Ahmed 36203-6815365-7 Haji Atta Muhammad 364 106 - 106 - - - 470 364 141 - 141 - - - 505
109 Ghulam Murtaza Adda Noor Pur Tehsil Pakpattan
Ghulam Murtaza 36402-6329471-7 Hakim Ghulam Muhammad 399 87 - 87 - - - 486 399 124 - 124 - - - 524
110 Muhammad Akram Chishti Mouza Chishti Qutab Din Po Basirpur Tehsil Depalpur
Muhammad Akram Chishti 35301-7299098-9 Aish Muhammad 351 141 - 141 - - - 493 351 175 - 175 - - - 526
111 Muhammad Munir Khan Basti Nooran Mouza Mahru Baloch Po Dula Bahadar Tehsil Chishtian, Distt Bahawalnagr
Muhammad Munir Khan 31102-1917435-3 Muhammad Nawaz Khan 323 185 - 185 - - - 508 323 216 - 216 - - - 539
112 Kabeer Ahmad Chak 6/1 R Renalakhurd
Kabeer Ahmad 35302-5109146-1 Abdul Sattar 350 167 - 167 - - - 517 350 200 - 200 - - - 550
113 Nazar Ahmad Ghaloo Nagar Sabra Tehsil Jalalpur Pirwala District Multan
Nazar Ahmad 36301-0970914-7 Haji Khuda Bux 305 220 - 220 - - - 525 305 249 - 249 - - - 554
114 Bashir Ahmad S/O Mouza Chishti Qutab Din Basirpur
Bashir Ahmad S/O 35301-1974423-7 Fazal Muhammad 356 184 - 184 - - - 541 356 218 - 218 - - - 575
115 Muhammad Rafique Chak No 131 Jb, Faisalabad
Muhammad Rafique 33201-1654991-3 Ahmad Ali 350 198 - 198 - - - 548 350 231 - 231 - - - 581
116 Khalid Nawaz Vill & P.O Dad Wali Sharif Teh: Wazirabad Dist: Gujranwala
Khalid Nawaz 34104-2304927-5 Muhammad Malik 350 199 - 199 - - - 549 350 232 - 232 - - - 582
117 Muhammad Yousaf So Sardar Khan Chak# 285 Rb, Rangar Nangal, P.O Same, Tehsil Safderabad, District Nankana Sahib
Muhammad Yousaf 35403-1170980-5 Sardar Khan 400 378 - 378 - - - 778 400 189 - 189 - - - 589
118 Abdul Karim Village Haji Wahid Bux Keeio, P.O & Taluka Mirpur Khas
Abdul Karim 44103-0310976-1 Haji Wahid Bux 450 99 - 99 - - - 549 450 142 - 142 - - - 592
119 Mrs. Amlan W/O Akber Akbar House Samejo Ward No 310 B Umerkot
Mrs. Amlan 44107-5340899-4 Akbar 343 226 - 226 - - - 569 343 259 - 259 - - - 601
120 Muhammad Alam S O Sanaullah Choorrhi Daal, P.O Manawala, Tehsil & District Sheikhupura
Muhammad Alam 35404-9200049-1 Sanaullah 345 517 - 517 - - - 862 345 258 - 258 - - - 603
121 Tahir Muqaddas Diyo Sial Tehsil Chunian Distt Kasure
Tahir Muqaddas 35101-1991620-9 Muhammad Ashiq 445 130 - 130 - - - 575 445 172 - 172 - - - 617
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
122 Abdul Rauf Khan Chak 110 Wb Tehsil Mailsi
Abdul Rauf Khan 36602-4309464-1 Haji Muhammad Anwar Khan
400 190 - 190 - - - 590 400 228 - 228 - - - 628
123 Zuharan Bibi W/O Abdul Khaliq Chak # 6/G Tehsil Chishtian District Bahawalnagar
Zuharan Bibi 31303-9366201-4 Abdul Khaliq 400 190 - 190 - - - 590 400 228 - 228 - - - 628
124 Asghar Ali Chak # 122/6-R Haroonabad District Bahawalnagar
Asghar Ali 31104-1755744-1 Ahmad Din 416 191 - 191 - - - 607 416 229 - 229 - - - 645
125 Pervaiz Bonga Sahby Ka Mandi Ahmad Abad Tehsil Depalpur
Pervaiz 35301-6657214-3 Abdul Khaliq 500 108 - 108 - - - 608 500 155 - 155 - - - 655
126 Abdul Hamid Ward No. 3 Fateh Pur, Tehsil Karor, Distt. Layah
Abdul Hamid 32202-2538689-5 Awan 350 279 - 279 - - - 629 350 310 - 310 - - - 660
127 Zubaida Khanam Lala Zar Colony Tehsil Wazirabad Distt. Gujranwala
Zubaida Khanam 34104-3257386-6 Sanaullah 400 228 - 228 - - - 628 400 266 - 266 - - - 666
128 Muhammad Akram Naro Chak 549/Eb Po 477/Eb Tehsil Vehari
Muhammad Akram Naro 34301-2286220-9 Atta Muhammad 396 264 - 264 - - - 660 396 301 - 301 - - - 698
129 Muhammad Yar S/O Ellahi Mohallah Kalarwal P/O Chamb Kulyar Tehsil And District Lodhran
Muhammad Yar 36203-1795051-9 Elahi Bux 410 250 - 250 - - - 660 410 291 - 291 - - - 701
130 Fazal Ellahi Chak Alwardi Khan Po Bonga Hayat Tehsil Pakpattan
Fazal Ellahi 36402-5154821-3 Muhammad Saddique 399 265 - 265 - - - 664 399 303 - 303 - - - 702
131 Shahzad Hanif Chak No:6 J.B. Tehsil& Distt Faisalabad
Shahzad Hanif 33103-3206741-7 Muhammad Hanif 400 227 - 227 - - - 627 400 303 - 303 - - - 703
132 Muhammad Akram Ward # 4, Jamali Road Daur, P>O & Taluka Daur Dist Nawab Shah
Muhammad Akram 45402-9998557-1 Rasool Bux 450 241 - 241 - - - 691 450 284 - 284 - - - 734
133 Khalid Hussain S/O Rehmat Khan Chak 126/Wb Tehsil Mailsi
Khalid Hussain 36602-3103465-3 Rehmat Khan 474 225 - 225 - - - 699 474 270 - 270 - - - 744
134 Muhammad Arshad S/O Jamshed Al Ward # 11 Tehsil And District Lodhran
Muhammad Arshad 36203-3233074-3 Jamshed Ali 450 256 - 256 - - - 706 450 298 - 298 - - - 748
135 Mian Khan Chak No 435Tehsil Jarawaladistt. Faisalabad
Mian Khan 33104-2073513-3 Ismail Khan 450 256 - 256 - - - 706 450 299 - 299 - - - 749
136 Ahmad Yar Mouza Chena Karmali Sahiwal
Ahmad Yar 36502-1054859-7 Agra 450 256 - 256 - - - 706 450 299 - 299 - - - 749
137 Mohmmad Anwar S/O Barkat Ali House No 74 Street 2 People Colony Okara
Mohmmad Anwar 35302-8043477-3 Barkat Ali 631 62 - 62 - - - 694 631 122 - 122 - - - 753
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
138 Faraz Ahmad Khan Khan House,Qila Shabdav Singh P.O Manawala Tehsil And District Sheikhupura
Faraz Ahmad Khan 35404-5510593-1 Munir Ahmad Khan 469 600 - 600 - - - 1,069 469 300 - 300 - - - 769
139 Murshid Ali S/O Jamshed Ali Ward # 11 Tehsil And District Lodhran
Murshid Ali 36203-1297182-3 Jamshed Ali 470 264 - 264 - - - 734 470 308 - 308 - - - 778
140 Muhammad Akbar Village Kot Pindidas P.O Same Tehsil Ferozewala District Sheikhupura
Muhammad Akbar 35401-2707612-1 Muhammad Saleem 475 617 - 617 - - - 1,092 475 308 - 308 - - - 783
141 Zulfiqar Ali Allah Din Jhoke Balochan Deo Sial Tehsil Chunain Distt Kasur
Zulfiqar Ali Allah Din 35101-5055443-9 Muhammad Amin 500 238 - 238 - - - 738 500 285 - 285 - - - 785
142 Zubaidan Perveen W/O Ghulam Mouza Mitroo Tehsil Mailsi
Zubaidan Perveen 36602-8960601-0 Ghulam Mustafa 475 271 - 271 - - - 746 475 316 - 316 - - - 791
143 Muhammed Madni Basti Abdul Aziz Mouza Chah Narang P/O Chah Loharan Tehsil Ahmad Pur East District Bahawalpur
Muhammed Madni 31201-3020761-5 Nazar Muhammad 495 291 - 291 - - - 786 495 338 - 338 - - - 833
144 Ch.Abdul Majeed House # 71 Mohallah Shadman Colony Ahmad Pur East District Bahwalpur
Ch.Abdul Majeed 31201-5034735-7 Ch. Barkat Ali 430 380 - 380 - - - 810 430 421 - 421 - - - 851
145 Muhammad Anwar Chohan Chak 97/9L Tehsil Sahiwal
Muhammad Anwar Chohan 36502-3895013-1 Bagh Din 608 231 - 231 - - - 839 608 288 - 288 - - - 896
146 Tasaddiq Hussain Alias House No 509/J Fareed Town Sahiwal
Tasaddiq Hussain Alias 36502-0887551-3 Ch Mukhtar Ahmad 920 - - - - - - 920 907 - - - - - - 907
147 Suleman Ahmad P/A Ashfaq Ahmad Dha. House No.81-C, Phase 01,Lahore Cantt
Suleman Ahmad 32103-6688243-9 Manzoor Ahmed 450 427 - 427 - - - 877 450 467 - 467 - - - 917
148 Talib Hussain & Nasir Hussain Mouza Zohr Kot Po Karmpur Tehsil Mailsi
Talib Hussain Nasir Hussain
36602-9900663-1 Mulazam Hussain 725 145 - 145 - - - 870 725 213 - 213 - - - 938
149 Ghuman Dairy Farm Village Rana Tehsil Wazirabad Distt. Gujranwala
Akbar Ali 34104-2311278-3 599 285 - 285 - - - 884 599 342 - 342 - - - 941
150 Atta Hussain Khan S/O Karim Mouza Mahni Po Dakota Tehsil Mailsi
Atta Hussain Khan 36602-7129028-5 Kareem Khan 670 307 - 307 - - - 977 670 370 - 370 - - - 1,040
151 Muhammad Zafar Mohallah Abbubakar Hasil Pur Old Bahwalpur
Muhammad Zafar 31203-5171999-3 Muhammad Latif 700 376 - 376 - - - 1,076 700 443 - 443 - - - 1,143
152 Mushtaq Ahmad Chak # 360/Wb P/O Same Lodhran
Mushtaq Ahmad 36201-7107362-9 Khan Muhammad 700 399 - 399 - - - 1,099 700 465 - 465 - - - 1,165
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
153 Ali Imran Chak Hama Rath Tehsil Arifwala
Ali Imran 36401-4394786-7 Ahmad Yar 700 464 - 464 - - - 1,164 700 530 - 530 - - - 1,230
154 Falak Sher Chak No. 238/Gb Tehsil Jaranwala Distt Faisalabad
Falak Sher 33104-4483070-1 Rehmatullah 900 513 - 513 - - - 1,413 900 598 - 598 - - - 1,498
155 Muhammad Din&Muhammad Ramzan Roda Singh P/O Khas Haroonabad District Bahwal Nagar
Muhammad Din Muhammad Ramzan
31101-7292425-1 Imam Din 1,000 570 - 570 - - - 1,570 1,000 665 - 665 - - - 1,665
156 Shahid Bashir 82-B,Tipu Block,New Garden Town,Lahore
Shahid Bashir 35202-2702691-7 Bashir Ahmed 2,122 938 - 938 - - - 3,059 2,122 1,091 - 1,091 - - - 3,213
157 Ghulam Fareed Khan Khakwani Shareef Manzil Kutcheri Road Multan
Ghulam Fareed Khan Khakwani
36302-0403377-3 Muhammad Sharif Khan 600 1,331 - 1,331 - - - 1,931 - 1,001 - 1,001 - - - 1,001
158 Muhammad Nasir Khan Bakshan Khan P/O Same Tehsil Chishtian
Muhammad Nasir Khan 31102-6085793-5 Abdul Jabbar Khan 3,229 1,653 - 1,653 - - - 4,882 - 1,653 - 1,653 - - - 1,653
159 Muhammad Ramzan Sheikh 42-S Dha Lahore Cantt. Pakistan
Muhammad Ramzan Sheikh
Sheikh M. Yousef 90,432 56,793 - 56,793 - - - 147,225 - 6,726 - 6,726 - - - 6,726
160 Amir Hossein Tabarra H. No 85, Pasdaran Ave. 2Nd Gulistan, Tehran, Iran
Amir Hossein Tabarra Hamid Tabarra 124,043 5,776 - 5,776 - - - 129,819 3,962 - - - - - - 3,962
161 Masoud Abdar Esfahani H.No 74, Exfani Ave. Morahari Street.Isfahan, Iran
Masoud Abdar Esfahani Rasoul Esfahani 46,853 48,361 - 48,361 - - - 95,213 46,883 49,647 - 49,647 - - - 96,530
162 Payam Rahim Doustdar H.No 2287 Vila, Sanbazan Street, Shahrak Zhandermer, Tehran Iran.
Payam Rahim Doustdar Rahim Doustdar 54,952 28,105 - 28,105 - - - 83,057 14,535 32,177 - 32,177 - - - 46,712
163 Hassan Majeed 12 B, Korangi Road, Phase 1, Dha , Karachi , Pakistan
Hassan Majeed Abdul Majeed 58,257 32,885 - 32,885 - - - 91,142 11,201 38,247 - 38,247 - - - 49,448
164 Saidazahan Sameullakh H. No 115, Building-Ss, Street Flatwa, Odesa, Ukarine.
Saidazahan Sameullakh 57,181 13,964 - 13,964 - - - 71,145 57,171 13,965 - 13,965 - - - 71,136
165 Heshmat Malekzadeh H. No 12, Izad Alley Safa Street, Qhiytariye, Tehran, Iran
Heshmat Malekzadeh Abdol Hussain 281,256 132,803 - 132,803 - - - 414,058 281,267 163,562 - 163,562 - - - 444,828
166 Ary Traders P.O. Box 1123, Dubai, United Arab Emirates.
Haji Abdul RazzakHaji Muhammad Iqbal
156,465 657,210 - 657,210 - - - 813,675 116,565 714,353 - 714,353 - - - 830,918
167 M/S Hanover Int’L Trading LlcP.O. Box 24309, Sharjah United Arab Emirates.
Abdul Rehman Bin MohammadAshraf LangalathRazzak Langalath
- 13,595 - 13,595 - - - 13,595 - 15,761 - 15,761 - - - 15,761
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
168 Muhammad Saleem Butt P.O.Box: 19204 Al Ain, U.A.E
Muhammad Saleem Butt 964 - - - - - - 964 935 - - - - - - 935
169 Yolanda Comia Ginete P.O. Box 15258 Al Ain U.A.E
Yolanda Comia Ginete 671 - - - - - - 671 671 - - - - - - 671
170 Javed Iqbal Ghulam P.O. Box:65647 Al Ain,U.A.E
Javed Iqbal Ghulam 646 - - - - - - 646 646 - - - - - - 646
171 Harish P.O. Box:42973 Dubai, U.A.E
Harish 547 - - - - - - 547 570 - - - - - - 570
172 Muhammad Naeem P.O. Box:26013 Sharjah, U.A.E
Muhammad Naeem 1,036 - - - - - - 1,036 1,193 - - - - - - 1,193
173 Syed Mazher Ul Haque Qaiser P.O. Box: 35170 Dubai, U.A.E
Syed Mazher Ul Haque Qaiser
527 - - - - - - 527 527 - - - - - - 527
174 Johnas Mondroy Baja P.O.Box 261619, Dubai, U.A.E.
Johnas Mondroy Baja 692 - - - - - - 692 698 - - - - - - 698
175 Nasim Ul Ghani Abdul Ghani P.O.Box 54438, Dubai, U.A.E.
Nasim Ul Ghani Abdul Ghani
1,628 - - - - - - 1,628 1,460 - - - - - - 1,460
176 Ibrahim A Karim H Almaimani P.O.Box 157, Dubai, U.A.E.
Ibrahim A Karim 2,556 - - - - - - 2,556 2,374 - - - - - - 2,374
177 Sherief Mohammod Basheer P.O.Box 31558, Dubai, U.A.E.
Sherief Mohammod Basheer
863 - - - - - - 863 800 - - - - - - 800
178 Muhammad Farooq P.O.Box 7880, Dubai, U.A.E.
Muhammad Farooq 650 - - - - - - 650 678 - - - - - - 678
179 Kulthoum Hussain P.O.Box 3306, Dubai, U.A.E.
Kulthoum Hussain 2,268 - - - - - - 2,268 2,319 - - - - - - 2,319
180 Saeed Rashed R. A. H. Al Zaabi P.O.Box 246, Abu Dhabi, U.A.E.
Saeed Rashed R. A. H. Al Zaabi
673 - - - - - - 673 673 - - - - - - 673
181 Abd El Mohsen Mohamed El Sayed P.O.Box 253, Abu Dhabi, U.A.E.
Abd El Mohsen Mohamed El Sayed
925 - - - - - - 925 1,006 - - - - - - 1,006
182 Mariam Cenciode Guzman P.O.Box 68469, Dubai, U.A.E.
Mariam Cenciode Guzman 2,249 - - - - - - 2,249 2,027 - - - - - - 2,027
183 Ahmed Salim Saif Al Fazari P.O.Box No 47 Doha Qatar
Ahmed Salim Saif Al Fazari 4,370 46 - 46 - - - 4,416 4,268 46 - 46 - - - 4,314
184 Sardar Khan Dost Mohammad P.O.Box No 9758 Doha Qatar
Sardar Khan Dost Mohammad
3,239 1,055 - 1,055 - - - 4,293 3,202 1,199 - 1,199 - - - 4,401
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
185 Khalid Soliman M.H.Al Taweel P.O.Box No 6169 Doha Qatar
Khalid Soliman M.H.Al Taweel
6,240 3,537 - 3,537 - - - 9,777 6,239 3,889 - 3,889 - - - 10,128
186 Maumood Sultan Flat 22, Bldg 844, Road 1128, Manama 311
Maumood Sultan 621 - - - - - - 621 621 - - - - - - 621
187 Zulqarnain Haider Near Chugi No 14 Mumtazabad Mohallah Basti Ram Kali Multan Multan Multan
Zulqarnain Haider 36302-1464202-7 1,360 3 - 3 - - - 1,363 95 542 - 542 - 27 27 664
188 Khyal Muhammad H No 8 Ziam Qila Kochyeno Kalay Tangi Charsadda
Khyal Muhammad 17102-9042244-7 Muhammad - - - - - - - - - 614 - 614 - 188 188 802
189 Muhammad Asif H No 11-I-B Allowdin Road Cantt Lahore
Muhammad Asif 35201-6326933-1 Abdul Latif 471 9 - 9 - - - 480 - 2,308 - 2,308 - 5 5 2,313
190 Waseem Zaheer E-607, Chapal Resort, Block-1, Clifton, Near Boat Basin Police Station
Waseem Zaheer 42301-9065451-9 Syed Mohammad Zaheer 1,213 9 - 9 - - - 1,222 - 687 - 687 - 1 1 688
191 Arif Mehmood Gujjar Khaiber Sweets And Bakers P-575 College Road Namat Colony 1 Faisalabad
Arif Mehmood Gujjar 38405-5114206-7 Ali Muhammad 1,837 15 - 15 - - - 1,851 - 2,141 - 2,141 - 10 10 2,151
192 Fayyaz Ahmad Qadri H No 12-A Muhallah Racha Rasheed Rd Lahore
Fayyaz Ahmad Qadri 35202-7587301-9 Suraj Din 2,702 22 - 22 - - - 2,723 - 1,535 - 1,535 - 6 6 1,541
193 Mohammad Kamal Uddin M K Corporation Room No 617 6Th Floor Zohra Square Bldg Ma Jinnah Rd Karachi
Mohammad Kamal Uddin 42000-3057360-9 Abdul Haleem 2,345 21 - 21 - - - 2,366 - 1,453 - 1,453 - 0 0 1,453
194 Musa Constant Sher Gill Flat#3 Floor#2 Plot No 28-C 14 Commercial Street Phase 2 Extension Dha Karachi
42201-9859370-5 523 6 - 6 - - - 529 - 512 - 512 - 8 8 520
195 Tariq Mehmood H No 181 Atta Turk Block New Garden Town Lahore
Tariq Mehmood 35202-8919171-3 Aziz Ud Din 7,667 52 - 52 - - - 7,719 - 9,789 - 9,789 - 1 1 9,790
196 Shahzad Rasheed Flat # A-30, Zubaida Classics Block 13-D-2 Gulshan-E-Iqbal
Shahzad Rasheed 42201-4346326-9 Abdul Rasheed (Late) 1,101 11 - 11 - - - 1,111 - 774 - 774 - 0 0 774
197 Nayyar Ahmed Malik H No 53-U , Phase Ii Dha Cantt Lahore
Nayyar Ahmed Malik 35202-2026918-7 Naseem Ahmed Malik 24,711 215 - 215 - - - 24,926 - 24,415 - 24,415 - 12 12 24,427
198 Mohammad Tariq H No 11 St No 31 Safi Road New Islamia Park Chuberji Lahore
Mohammad Tariq 35202-2527308-5 Mohammad Ali 500 4 - 4 - - - 504 - 756 - 756 - 0 0 756
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
199 Muhammad Ashraf Chaudhary Punjab Institute Of Paramedica 13 Mamdot Block Mustafa Town Lahore
Muhammad Ashraf Chaudhary
35202-0591483-1 Chaudhary Barkat Ali 2,210 18 - 18 - - - 2,227 - 3,401 - 3,401 - 11 11 3,412
200 Haroon Ahmad H No 12/25 Main Road Green View Colony Faisalabad
Haroon Ahmad 33100-8305200-3 Neyaz Ahmad 3,307 5 - 5 - - - 3,312 - 7,197 - 7,197 - 0 0 7,197
201 Tehsin Ali Shareef Free Hold Assoct Pvt Ltd Flat No A-1 Park Way Appt Tennis Club Road Blk 9 Clifton Karachi
Tehsin Ali Shareef 42301-6484131-1 Hussain Ali Shareef 5,646 49 - 49 - - - 5,696 - 5,359 - 5,359 - 1 1 5,361
202 Abdul Qadir Mughal Heco Sales 9Km Multan Road Awan Town Lahore
Abdul Qadir Mughal 35200-1511087-3 M Abbas Mughal 1,548 1,094 - 1,094 - - - 2,641 - 1,161 - 1,161 - 1 1 1,162
203 Khalid Ali Mansoori Flat No D-11 Florida Homes Phase V DHA
Khalid Ali Mansoori 42301-9762347-5 Mahfooz Ali Mansoori 3,914 3,473 - 3,473 - - - 7,387 - 3,565 - 3,565 - 9 9 3,574
204 Raja Muhammad Dulpazir Kyani House No A-24 Sector Z-V Gulshan-E-Mehmar Karachi
Raja Muhammad 42401-2889397-3 Raja Muhammad Arbab 2,802 3,190 - 3,190 - - - 5,992 - 3,246 - 3,246 - 13 13 3,259
205 Amjad Hussain Bilal Traders Shop No 92 Gulistan Market No Railway Road Behind Nigena Cin Faisalabad
Amjad Hussain 33100-3576503-5 Muhammad Hussain 2,690 - - - - - - 2,690 - 2,530 - 2,530 - 12 12 2,542
206 Adnan Iqbal Khan H No B-16/13 Alpine Homes Rojhan Behind Bar B-Q Block 5 Clifton
Adnan Iqbal Khan 42301-6309719-7 Iqbal Ahmed Khan 4,198 - - - - - - 4,198 - 539 - 539 - 1 1 540
207 Shahid Rais Ahmed Kashif Brothers Toys Centre Sh No 4-5 Pak Market Shah Alam Market Lahore
Shahid Rais Ahmed 35202-6224490-7 Rais Ahmed 3,786 - - - - - - 3,786 - 4,197 - 4,197 - 1 1 4,198
208 Abid Hussain H No 99 Row # 4 C Area Korangi Crossing Near Crossing
Abid Hussain 42501-1036790-9 Muhammad Shafi (Late) 1,150 12 - 12 - - - 1,163 570 51 - 51 - 1 1 622
209 Muhammad Tariq H No 3-A,St No 71-A Wassan Pura Lahore
Muhammad Tariq 35202-5897014-7 Muhammad Rafiq 3,034 16 - 16 - - - 3,050 - 6,595 - 6,595 - 9 9 6,604
210 Nazar Miran Ali H No 92/A Allama Iqbal Road Ghari Shahu Lahore
Nazar Miran Ali 35202-8217609-1 Muhammad Rafi 563 4 - 4 - - - 567 - 1,415 - 1,415 - 1 1 1,416
211 Jawaid Iqbal A J International Traders, Office No. 9, Kulsoom Bai Building, Jamat Khana Street, Saddar Karachi
Jawaid Iqbal 42301-0829968-7 Chudary Ilm Din Gojr 1,719 2,050 - 2,050 - - - 3,768 - 2,159 - 2,159 - 137 137 2,296
212 Muhammad Saeed P-352-D Block St 2 G M Abad Faisalabad.
Muhammad Saeed 33100-7915636-9 Ch. Muhammad Din 1,178 949 - 949 - - - 2,127 - 1,007 - 1,007 - 87 87 1,094
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
213 Tahir Mushtaq H No 148 Hamza Street No 1 Waqas Chowk Khayaban Colony No 1
Tahir Mushtaq 33100-4620798-5 Mushtaq 2,380 2,734 - 2,734 - - - 5,114 - 2,669 - 2,669 - 78 78 2,746
214 Kamran Parekh Credit Risk Management Dep 2Nd Fl Dubai Islamic Bank Hassan Chambers D C 7 Bl 7 Kehkashan Clifton Karachi
Kamran Parekh 42301-7099809-3 Mehmood Parekh 467 490 - 490 - - - 957 140 495 - 495 - 49 49 684
215 Osman Masud Avenir Technologies Pvt Ltd Off No 4-B Ground Floor Evacuee Trust Complex F-5/1 Islamabad
Osman Masud 61101-1835957-5 M Masood Pervaz 501 661 - 661 - - - 1,162 101 673 - 673 - 6 6 779
216 Muhammad Yaqoob Paul Salah Selencer And Gas Welding G T S Chowk . Edhi Centre,Jhelum
Muhammad Yaqoob Paul 37301-2325091-1 Muhammad Ismail Paul 375 373 - 373 - - - 748 100 385 - 385 - 37 37 522
217 Muhammad Irfan Myb 31-B Gulberg V Zafar Ali Road Lahore Lahore
Muhammad Irfan 35202-0368453-7 Ch M Yousaf 176 450 - 450 - - - 626 116 453 - 453 - 44 44 613
218 Saeed Ahmed Naseem H No P-36 Sheikhupura Road Malik Pur Nr Haji Book Depo Faisalabad
Saeed Ahmed Naseem 33100-1933832-5 Ch Sikandar Ali 147 467 - 467 - - - 614 92 470 - 470 - 4 4 567
219 Mirza Asif Baig A-503 Az Comforts Plot Sc Ii Block H North Nazimabad ,Karachi
Mirza Asif Baig 42101-9484754-1 Mirza Mahmood Baig 458 661 - 661 - - - 1,120 137 678 - 678 - 58 58 873
220 Muhammad Irfan H No C/79-80 1St Floor Wilayatabad No 2 Manghopir Road Karachi
Muhammad Irfan 42401-1458305-7 Khalil Rehman 310 439 - 439 - - - 749 93 453 - 453 - 4 4 550
221 Manzoor Hussain Descent Furniture Ara Manid Kot Khadam Ali Shah Al Wali Kanda ,Sahiwal
Manzoor Hussain 36502-1857954-1 Chaudhary Fazal Muhammad
245 406 - 406 - - - 652 80 414 - 414 - 38 38 533
222 Syed Muhammad Nasir Raza Rizvi H No D-2 Block 13-D-1 Gulshan E Iqbal Karachi
Syed Muhammad Nasir Raza Rizvi
42101-1739755-1 Syed Farzand Raza - - - - - - - - 143 694 - 694 - 62 62 898
223 Tariq Mehmood T M Photo Exprees 16 Urdu Nagar Mor Samanabad Gulshan Ravi Road Lahore
Tariq Mehmood 3520-22771479-9 Rahmat Ali 317 521 - 521 - - - 838 117 538 - 538 - 52 52 706
224 Sibghat Ullah Khan H No 66/A Rasool Park Ichra Lahore
Sibghat Ullah Khan 35202-9999867-5 Sami Ullah Khan 379 664 - 664 - - - 1,043 143 684 - 684 - 62 62 890
225 Muhammad Irfan Trade Link International Suit No 27 2Nd Floor Al Rehman Centre 15 Keamari Karachi
Muhammad Irfan 42301-4429671-1 Mohd Akber 281 412 - 412 - - - 692 84 428 - 428 - 38 38 549
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
226 Amjad Ali Shaida 305 Pak Block Allama Iqbal Town Lahore
Amjad Ali Shaida 35202-2733379-5 Abdul Rasheed 499 456 - 456 - - - 956 139 476 - 476 - 5 5 621
227 Muhammad Shafiq Mughal Malik Yaseen Silk Centre, Near Ramzan Paan Shop, Main Bazar Shaheen Abad, Gujranwala
Muhammad Shafiq Mughal 34101-2691676-1 Muhammad Siddique 394 508 - 508 - - - 902 109 538 - 538 - 5 5 652
228 Mohiuddin Zaki A 17 Block 3 Gulshan-E-Iqbal ,Karachi
Mohiuddin Zak 42201-8616265-7 Qazi Zaheer Uddin 425 539 - 539 - - - 964 127 574 - 574 - 53 53 754
229 Muhammad Mumtaz Uddin Ahmed Flat No.A-29, Lucky Centre, Block-4, Gulshan-E-Iqbal, Opp. Pizza Hutt, Karachi...
Muhammad Mumtaz Uddin Ahmed
42201-6203797-9 Syed Ahmed Noor 501 630 - 630 - - - 1,131 115 678 - 678 - 62 62 856
230 Faisal Mehmood H No 4 St No 28 Main Bazar 2 Ghazi Abad Cantt ,Lahore
Faisal Mehmood 35201-1284561-9 Muhammad Nisar Ahmed 352 466 - 466 - - - 818 - 518 - 518 - 5 5 522
231 Abdul Hameed M/S Abdul Hameed Cosmatic Corn Shop 4 Kohe-E-Noor Shoping Mal Mezz Floor Resham Gali ,Hyderabad
Abdul Hameed 41303-7918913-5 Tahir Mohammad 475 556 - 556 - - - 1,030 135 617 - 617 - 6 6 758
232 Muhammad Naeem H No 5-A St No 3 Mazang Road Mazang Lahore
Muhammad Naeem 35202-3276165-5 Muhammad Bashir 393 419 - 419 - - - 812 113 463 - 463 - 5 5 581
233 Amir Hanif Telconet Communication H No. 4 Street 56 F-8/4 Islamabad
Amir Hanif 61101-1951198-1 Mohammad Hanif 293 417 - 417 - - - 710 80 462 - 462 - 45 45 586
234 Muhammad Waseem Am Enterprise Office 14 Poonawala View Building Borhi Road Opposite Custom House. Khi
Muhammad Waseem 42201-4012381-7 M Ounus Qureshi 500 443 - 443 - - - 943 143 509 - 509 - 52 52 705
235 Syed Aman Ul Haque Micron B/710 Saima Trade Tower I.I Chundrigar Road Near Jungp ,Karachi
Syed Aman Ul Haque 42201-0275905-5 Syed Anis Ul Haq 413 495 - 495 - - - 908 122 549 - 549 - 6 6 677
236 Muhammad Amjad Young Student Centre Shop No 9 Gul Centre Capital Gali Saddar Karachi
Muhammad Amjad 42301-0493080-9 Abdul Sattar 479 498 - 498 - - - 977 139 578 - 578 - 59 59 776
237 Saeed Iqbal H No 19 St No 10 Sector E Manzoor Colony
Saeed Iqbal 42201-0725912-9 Iqbal 469 271 - 271 - - - 739 140 357 - 357 - 39 39 536
238 Abdul Jabbar Rocket Corporation Shadman Road Near Allied Bank Faisalabad
Abdul Jabbar 33100-1394416-1 Muhammad Ishaq 493 - 104 104 - - - 597 493 - 104 104 - - - 597
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
239 Fazal Hussain Malik H # 339 St # 73 G-11/2 Islamabad
Fazal Hussain Malik 61101-7419377-1 Malik Allah Bakhsh 740 - 328 328 - - - 1,068 740 - 328 328 - - - 1,068
240 Khuram Ibrahim H No D-85 Sector No 1 Khayaban E Sirsyed,Rawalpindi
Khuram Ibrahim 37405-6665694-9 Umer Bakhash Satti 456 - 109 109 - - - 565 456 - 109 109 - - - 565
241 Hassan Ashraf Hameed Appt # 006 Park Towers Main Building F-10/3 Islamabad
Hassan Ashraf Hameed 61101-1946765-9 Ashraf Hameed 713 - 203 203 - - - 916 713 - 203 203 - - - 916
242 Ashfaq Ul Haq H No 66-B-1 Johar Town Lahore Lahore
Ashfaq Ul Haq 35202-2367122-7 Abdul Haq 409 - 104 104 - - - 513 409 - 104 104 - - - 513
243 Kashif Shehzad H No 452,St No 9 Cheema Colony Sargodha
Kashif Shehzad 38403-2265218-3 Muhammad Farooq 466 - 143 143 - - - 609 466 - 143 143 - - - 609
244 Muhammad Khalil H No R-318 Decent House Block 7 Gulistan-E-Jauhar Karachi
Muhammad Khalil 42501-9861623-7 Hakim Din 478 - 132 132 - - - 610 478 - 132 132 - - - 610
245 Shaukat Hussain H No 530-Ii-2-A New Model Colony Bund Road Mirza Ice Factory Bahawalpur
Shaukat Hussain 31202-0252708-5 Manzar Ahmed 448 - 132 132 - - - 580 448 - 132 132 - - - 580
246 Mian Liaqat Ali Sheikh H No. 483, Block E-1 Wapda Town,Upper Portion Lahore
Mian Liaqat Ali Sheikh 36302-4195237-9 Sheikh Muhammad Younas 394 - 121 121 - - - 515 394 - 121 121 - - - 515
247 Ghulam Mohammad Chach House Saabri Kalimullah Karyana Munirabad Opp Aysha Masjid Wah Cantt
Ghulam Mohammad 37406-3615610-5 Mohammad Suleman 534 - 159 159 - - - 693 534 - 159 159 - - - 693
248 Khayyam Shahzad H No P-80,St No 06/10 Abdullah Jalal Centre Munshi Mohalla Faisalabad
Khayyam Shahzad 54400-1903191-1 Muhammad Saleem 506 - 158 158 - - - 664 506 - 158 158 - - - 664
249 Hafeez Ullah Saeed H No P-93,Main Bazar Green View Colony,Rajey Wala Faisalabad
Hafeez Ullah Saeed 33100-0721436-1 Muhammad Saeed 486 - 142 142 - - - 628 486 - 142 142 - - - 628
250 Aisha Tahoor Fl No F-42 2Nd Floor Phase Ii Defence View Karachi
Aisha Tahoor 42401-5489084-6 Syed Tahoor Hussain 424 - 102 102 - - - 526 424 - 102 102 - - - 526
251 Mohammad Shahrukh Siddiqui Fl No B-49 Anar Kali Complex Bab-E-Arif Nagan Chowrangi
Mohammad Shahrukh Siddiqui
42000-8129775-9 Naeem Ul Haq 446 - 121 121 - - - 567 446 - 121 121 - - - 567
252 Javaid Iqbal Qamar 562-A Al-Quresh Housing Phase 1 Street # 8-A Shershah Road Multan- 061-6538199
Javaid Iqbal Qamar 36302-8512607-7 Rao Abdul Sattar Khan 456 - 146 146 - - - 602 456 - 146 146 - - - 602
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
253 Mohammad Imran H No 21 Block C Unit 6 Latifabad Ak Minar Masjid Hyderabad
Mohammad Imran 45301-1367728-9 Mohammad Akram 477 - 150 150 - - - 627 477 - 150 150 - - - 627
254 Lal Bux House No 2 Domra Goth Qasimabad Near Ali Raza Catress Hyderabad
Lal Bux 41306-1322732-9 Allah Rakhiyo 424 - 123 123 - - - 546 424 - 123 123 - - - 546
255 Sabir Ali Khan Norani H No 12 Block 3,Sector C-1,Green Town,Township Lahore
Sabir Ali Khan Norani 35202-0228331-3 Ghazanfar Ali Khan Norani 488 - 149 149 - - - 637 488 - 149 149 - - - 637
256 Manzoor Hussain F-403 Chapal Garden Abul Hassan Ispahani Road Gulshan-E-Iqbal
Manzoor Hussain 42501-0176010-9 Hazoor Bux Bhatti 478 - 130 130 - - - 608 478 - 130 130 - - - 608
257 Muhammad Riaz ShahzaH No Ts-53 Hit Majid Shaheed Colony,Taxila
Muhammad Riaz Shahza 37302-1184015-9 Fazal Ellahi 512 - 142 142 - - - 654 512 - 142 142 - - - 654
258 Naveed Ahmad H No Bv-66 Haider Ali Street #5 Muslim Town Near Al-Mubarik Cng Rawalpindi
Naveed Ahmad 37405-0627379-3 Habeeb Ahmad 523 - 164 164 - - - 687 523 - 164 164 - - - 687
259 Muhammad Shahzad Ahmed H No 53 St No 15 Muhammad Nagar Bilal Park Lahore
Muhammad Shahzad Ahmed
35202-1619390-9 Zain Ul Abideen 505 - 180 180 - - - 685 505 - 180 180 - - - 685
260 Muhammad Abaidullah H No 194/4 Block N Pakpattan Road Arifwala
Muhammad Abaidullah 36401-0687543-9 Muhammad Hasan 390 - 153 153 - - - 543 390 - 153 153 - - - 543
261 Naheed Tabassum A-9 Centre Point 1St Floor Block 21 F B Area
Naheed Tabassum 42201-2684598-6 Bahir Ahmed Siddique 471 - 142 142 - - - 613 471 - 142 142 - - - 613
262 Tahir Hussain Rajput K-358 Ward # 03 Manuabad Nawabshah
Tahir Hussain Rajput 45402-5144878-5 Mubin Ahmed 491 - 159 159 - - - 651 491 - 159 159 - - - 651
263 Tariq Mehmood Quarter No 1, Bandadi Tabimarkaz Millat Road Chak No 116-Jb Faisalabad
Tariq Mehmood 33100-4696758-1 Abdul Aziz 458 - 91 91 - - - 549 458 - 91 91 - - - 549
264 Aijaz Ahmed H No D-39 Empire Centre Block 18 Gulistan-E-Johar Karachi
Aijaz Ahmed 43105-1513494-5 Rafeeq Ud Din 639 - 255 255 - - - 894 639 - 255 255 - - - 894
265 Ashi Khan Fl No 12-C 3Rd Floor Appt No 5 Lane 8 Bukhari Comm Phase 6 Dha Super Fine Dry Cleaner Karachi
Ashi Khan 42401-6959298-4 Abdul Rasheed 745 - 290 290 - - - 1,034 745 - 290 290 - - - 1,034
266 Syed Moazzum Ali Shah Basti Noor E Wali Muhalla Sheikhan Rahim Yar Khan
Syed Moazzum Ali Shah 31303-8553532-3 Sed Ghazanfar Ali Shah 403 - 173 173 - - - 576 403 - 173 173 - - - 576
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
267 Mohammad Kashif Flat No 2 2Nd Floor 347C Blk 2 Pechs Karachi
Mohammad Kashif 42201-0464304-1 Muhammad Umer 534 - 152 152 - - - 685 534 - 152 152 - - - 685
268 Ghulam Mustafa Mallah House 716-E Kamesry Bagh Darya Road Opp Zarie Bank Kotri
Ghulam Mustafa 41204-8642923-3 Muhammad Bachal 564 - 253 253 - - - 817 564 - 253 253 - - - 817
269 Muhammad Zahid H No L-100 Rafi Garden Malir City
Muhammad Zahid 42201-8740211-9 Mohammad Akbar 373 - 150 150 - - - 523 373 - 150 150 - - - 523
270 Shaher Bano H No A-35/200 Paro Abdullah Town Block A Hyderabad
Shaher Bano 45402-1020524-6 Imdad Ali 399 - 176 176 - - - 575 399 - 176 176 - - - 575
271 Muhammad Rizwan Flat No D-509 Rufi Lake Drive Block 18 Gulistan-E-Johar Perfume Chowk Karachi
Muhammad Rizwan 42401-1847512-7 M Tariq 570 - 229 229 - - - 800 570 - 229 229 - - - 800
272 Asjad Rasool Asjad House Mohallah Harl Po Khas Chakakka Gt Road Jhelum Dina
Asjad Rasool 37301-4480456-9 Gulam Rasool 522 - 111 111 - - - 632 522 - 111 111 - - - 632
273 Bashir Ahmed Basti Noor Pur Chak Abbas Rahim Yar Khan
Bashir Ahmed 31303-7742304-9 Muhammad Suleman 589 - 251 251 - - - 840 589 - 251 251 - - - 840
274 Iram Shahzad Khawaja Street New Shadab Colony Multan
Iram Shahzad 36302-0924118-9 Zahoor Ahmad Tabash 622 - 279 279 - - - 901 622 - 279 279 - - - 901
275 Haji Muhammad Yasin Yasin House St No 1 Muhalla Shahid Nagar Pakpattan
Haji Muhammad Yasin 36402-7453294-7 Roshan Din 533 - 222 222 - - - 755 533 - 222 222 - - - 755
276 Muhammad Ijaz Ahmed H No 2 St No 10 Javaid Colony Changi Amer Sadhu Lahore
Muhammad Ijaz Ahmed 35202-3338653-9 Miray Din 428 - 188 188 - - - 616 428 - 188 188 - - - 616
277 Naveed Ahmed H No 141-C Block W Scheme No 2 Gulshan E Iqbal Rahim Yar Khan
Naveed Ahmed 31303-9167445-3 Gulam Rasool 951 - 444 444 - - - 1,395 951 - 444 444 - - - 1,395
278 Himat Shah Room No 12 Mall Plaza Ring Road Peshawar
Himat Shah 21203-5720702-3 Janat Shah 594 - 233 233 - - - 827 594 - 233 233 - - - 827
279 Muhammad Saleem House No 3-S-70 St Mohalla 5 Block 10 Po Sargodha City Sargodha
Muhammad Saleem 38403-2249176-3 Muhammad Shabbir 415 - 196 196 - - - 611 415 - 196 196 - - - 611
280 Nasir Ali H No 5 St No 109 Johar Street Sandha Road Islampura Lahore
Nasir Ali 35202-2892854-9 Naseer Ahmed 412 - 169 169 - - - 581 412 - 169 169 - - - 581
281 Naveed Akhter H No 3 Basharat Town More Eminabad Gujranwala
Naveed Akhter 34101-4340956-9 Abdul Rasheed 484 - 113 113 - - - 597 484 - 113 113 - - - 597
282 Naveed Iqbal H No 2 St No 24 Wah Model Town Wah Cantt
Naveed Iqbal 17301-2237585-9 Muhammad Akram 921 - 412 412 - - - 1,333 921 - 412 412 - - - 1,333
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
283 Tousef Khan Niazi Fl No 1 Bashiruddin Plaza Dominwah Road
Tousef Khan Niazi 41303-2897591-9 Mohammad Hanif 589 - 238 238 - - - 827 589 - 238 238 - - - 827
284 Muhammad Yasin Yasin House Election Office Chak No 88/9-C Sahiwal
Muhammad Yasin 36502-6914007-7 Muhammad Yousaf 464 - 104 104 - - - 569 464 - 104 104 - - - 569
285 Muhammad Ashraf China Silk Centre Shop No 6 St No 5 Anarkali Baz Bhawana Bazar Faisalabad
Muhammad Ashraf 33100-9229871-3 Sh Din Muhammad 559 - 145 145 - - - 705 559 - 145 145 - - - 705
286 Sohail Ahmed Siddique H No G-32/25 Plot No 35 Habib Centre Liaqat Colony Hyderabad
Sohail Ahmed Siddique 41303-4667743-1 Imam Uddin 606 - 282 282 - - - 887 606 - 282 282 - - - 887
287 Muhammad Hamid Rafique H No 652,St No 4 Muhammad Abad Satiana Road Faisalabad
Muhammad Hamid Rafique 33100-5322631-1 Muhammad Rafique 606 - 175 175 - - - 781 606 - 175 175 - - - 781
288 Mohammad Ismail Malik Quarter No 3 Taluka Hospital Kotri Hyderabad
Mohammad Ismail Malik 41204-9286312-1 Mir Mohammad Malik 544 - 141 141 - - - 685 544 - 141 141 - - - 685
289 Muhammad Asim Anwar Sincert Industrises Plot No 8-9 Azher Street Behind Moti Mehal Cinema Rawalpindi
Muhammad Asim Anwar 37405-1516541-1 M Anwar 435 - 96 96 - - - 531 435 - 96 96 - - - 531
290 Sheikh Muhammad T Bilal Sheikh And Co 2055 Hussain Agahi Multan
Sheikh Muhammad T Bilal 36302-9412044-5 Sheikh Muhammad Aqoob 396 - 110 110 - - - 506 396 - 110 110 - - - 506
291 Syed Ali Raza Bukkhri House Kotla Waris Shah Near Ghungi No 1 Nishter Road Multan
Syed Ali Raza 36302-1421802-7 Syed Abdul Razaq Shah 419 - 119 119 - - - 537 419 - 119 119 - - - 537
292 Syed Rashid Sibteen H No 236 Street 17 Sherfabad Housing Society Karachi No 5
Syed Rashid Sibteen 41205-0576308-3 Sed Kamal Sibteen 587 - 173 173 - - - 760 587 - 173 173 - - - 760
293 Khawar Nazeer H No 15 Happy Homes Citizen Colony Qasimabad
Khawar Nazeer 41306-2448468-7 Nazeer Ahmed Qureshi 632 - 194 194 - - - 826 632 - 194 194 - - - 826
294 Abdul Qayyum Qayyum House Kanda Stop Nr Kalyana Hatta Road Pakpattan
Abdul Qayyum 36402-7893394-1 Hafiz M Mansha 465 - 128 128 - - - 593 465 - 128 128 - - - 593
295 Shahzada Muhammad Arbi H No 1034 Muhalla Peer Qazi Jalal I/S Pak Gate Multan
Shahzada Muhammad Arbi 36302-7904359-5 Mian Rasool Buksh Qureshi 449 - 145 145 - - - 594 449 - 145 145 - - - 594
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
296 Akbar Ashiq Ali Bangalow # 2, Gulnoor Bangalow Garden East Karachi Opp. Soneri Bank
Akbar Ashiq Ali 42201-0584692-1 Ashiq Ali 400 - 114 114 - - - 513 400 - 114 114 - - - 513
297 Umer Ijaz Butt Nae Abadi Ameen Abad Road Habib Pura Sialkot
Umer Ijaz Butt 34603-7590527-7 Ijaz Ahmed Butt 677 - 246 246 - - - 923 677 - 246 246 - - - 923
298 Asim Ameer H No 303 St No 17 Muhalla Sindhi Okara
Asim Ameer 35302-8976606-9 Ameer Ullah 481 - 167 167 - - - 648 481 - 167 167 - - - 648
299 Abid Hussain H No C-47 Railway Gate Musa Colony Near Bilal Masjid Karachi
Abid Hussain 42101-1748717-9 Muhammad Nazar 395 - 132 132 - - - 527 395 - 132 132 - - - 527
300 Ali Ahmed Daska Road Adda Shawr Sialkot
Ali Ahmed 34601-7235005-5 Khalil Ahmed 476 - 161 161 - - - 637 476 - 161 161 - - - 637
301 Izhar Zahir House # K-200, 1St Floor Muhalla K-Area, Korangi # 5 Near Al-Habib Masjid
Izhar Zahir 42201-3459537-3 Zahir Parwaiz 385 - 244 244 - - - 628 385 - 244 244 - - - 628
302 Aftab Ahmed Mehar Link St, Main Fateh Garh Road, Umer E Farooq Masjid, Sialkot
Aftab Ahmed 34603-2235221-9 Habib Ullah 467 - 141 141 - - - 608 467 - 141 141 - - - 608
303 Malik Muhammad Qasim H No P-40-41 Ground Floor St No 1 Primer Colony Nazim Abad Faisalabad
Malik Muhammad Qasim 33100-4293821-7 Nazir Ahmed 493 - 175 175 - - - 668 493 - 175 175 - - - 668
304 Zeeshan Butt H No 10 St No 25-A Mujahid Pura Mughalpura
Zeeshan Butt 35201-3238747-9 Muhammad Rafiq Butt 816 - 343 343 - - - 1,159 816 - 343 343 - - - 1,159
305 Malik Talib Hussain Shama Trading/Ms 7 Group P-1320/21 Block D-A Ghulam Muhammad Abad Faisalabad
Malik Talib Hussain 33102-4553005-7 Malik Abdul Ghani 831 - 482 482 - - - 1,313 831 - 482 482 - - - 1,313
306 Muhammad Nawaz Nz Traders Flat No 25 2Nd Floor Cantonment Plaza Saddar Road Cantt Peshawar
Muhammad Nawaz 17301-4103736-7 Wali Muhammad 320 - 475 475 - - - 795 320 - 475 475 - - - 795
307 Fida Muhammad Durrani Fida Poultery Services Shop No 12 Opp Mirch Mandi Charsada Road Peshawar
Fida Muhammad Durrani 17301-4937109-3 Abdul Samad Durrani 231 - 377 377 - - - 607 231 - 377 377 - - - 607
308 Shaukat Ali Sheikhs Store Shop No 15-E Aziz Bhatti Road Tariq Abad Lal Kurti Rawalpindi
Shaukat Ali 37405-3737773-9 Mushtaq Ahmed 253 - 387 387 - - - 640 253 - 387 387 - - - 640
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
309 Moeez Yousaf Ali Khitiyanawala Moeez And Sons Off No 26 Saleh Market Adamjee Road Saddar Rawalpindi
Moeez Yousaf Ali Khitiyanawala
37405-3464290-5 Yousaf Ali Khitiyanawala 163 - 532 532 - - - 695 163 - 532 532 - - - 695
310 Shiekh Shees Ahmed Flat No 3 Amir Plaza Commercial Area Chaklala Scheme Iii Rawalpindi
Shiekh Shees Ahmed 37405-2384525-5 Sheikh M Sharif 283 - 438 438 - - - 720 283 - 438 438 - - - 720
311 Amir Salah Ud Din Landco Intl Off No G-270 Flat No 4 College Road Rawalpindi
Amir Salah Uddin 37405-5565776-3 Salah Uddin 484 - 782 782 - - - 1,267 484 - 782 782 - - - 1,267
312 Asif Iqbal Asif Tents Service Sh No 278-2 Kamalabad Rawalpindi
Asif Iqbal 91306-9650601-3 Muzaffar Khan 204 - 345 345 - - - 549 204 - 345 345 - - - 549
313 Sheikh Mehboob Alam Yaqoob Alam Mala Mine Plot No Bb 927 Near Khayaban-E-Sir Syed Bridge Rawalpindi
Sheikh Mehboob Alam Yaqoob
37405-0665263-5 Sheikh Muhammad Yaqoob 301 - 480 480 - - - 781 301 - 480 480 - - - 781
314 Salman Saeed Khan Salman Associates Off No 15 1St Floor Majeed Plaza Bank Road Saddar Rawalpindi
Salman Saeed Khan 37405-3103743-5 Abdul Saeed Khan 304 - 473 473 - - - 776 304 - 473 473 - - - 776
315 Muhammad Rasheed Ahmad H No 92 Main Street Ghalla Mandi ,Okara
Muhammad Rasheed Ahmad
35302-5664631-3 Muhammad Ramzan 270 - 453 453 - - - 723 270 - 453 453 - - - 723
316 Masud Ahmed Khan House No.45, Block-C-2, Punjab Govt. Cooperative Housing Society, Lahore
Masud Ahmed Khan 37405-4314919-9 Abdul Majeed Khan 261 - 409 409 - - - 670 261 - 409 409 - - - 670
317 Waseem Gill E-355,11-A,Gulbahar Colony, Husnainabad, Lahore Cantt.
Waseem Gill 35201-1707104-7 211 - 329 329 - - - 540 211 - 329 329 - - - 540
318 Muhammad Hamid 86 Block-J Gulberg Iii Lahore
Muhammad Hamid 35200-1485201-1 Faiz Ullah Sulhri 502 - 740 740 - - - 1,242 502 - 740 740 - - - 1,242
319 Muhammad Akram Nib House 3Rd Floor 14 A Shahra-E-Aiwan-E-Tijarat Old Racecourse Road Lahore Lahore
Muhammad Akram 35202-5600335-5 Muhammad Ashraf 204 - 327 327 - - - 531 204 - 327 327 - - - 531
320 Ahsan Khalique Khan 60/9C Kacha Farezepur Road Icma Mazang Chungi Lahore
Ahsan Khalique Khan 35200-1471196-3 Nisar Ahmed Khan 403 - 617 617 - - - 1,021 403 - 617 617 - - - 1,021
321 Waseem Rafiq Wark International 9 Noon Avenue Muslim Town Lahore
Waseem Rafiq 35201-4426855-7 Muhammad Rafiq 503 - 778 778 - - - 1,281 503 - 778 778 - - - 1,281
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
322 Muhammad Asim Flat No 5 B,2Nd Floor Gul Plaza Main Market Gulberg Lahore
Muhammad Asim 35202-2741488-5 Muhammad Qasim 361 - 600 600 - - - 961 361 - 600 600 - - - 961
323 Chaudry Naeem Yousf H No 173 Pak Block Allama Iqbal Town Lahore
Chaudry Naeem Yousf 35202-2926553-5 Ch M Yousf 196 - 312 312 - - - 507 196 - 312 312 - - - 507
324 Syed Kamran Ahmad H No 28 Block B New Muslim Town Lahore
Syed Kamran Ahmad 35202-2057547-1 Ahmed Ali 303 - 447 447 - - - 749 303 - 447 447 - - - 749
325 Muhammad Raza Kazmi 543 -B Pcsir Ii Lahore Lahore
Muhammad Raza Kazmi 35200-1527100-1 Hasan Zaki Kazmi 204 - 328 328 - - - 532 204 - 328 328 - - - 532
326 Salman Farrokh Masood Textile Mills Ltd 16/3 A Eden Homes Main Gulberg Lahore
Salman Farrokh 35202-5643640-1 M Farrukh Hassan 231 - 340 340 - - - 571 231 - 340 340 - - - 571
327 Faiz Ul Haq Gujranwala Shafoon House Shop No 9 Bano Market,188-Multan Road Near Doctor Rasheed Dispensery Lahore
Faiz Ul Haq 35202-3990479-3 Abdul Haq 453 - 691 691 - - - 1,144 453 - 691 691 - - - 1,144
328 Mohammad Bilal Varity Hardwre Store 18-Sultan Ahmad Road Ichra Lahore
Mohammad Bilal 35202-6484057-3 Sheikh Khalid Amin 223 - 333 333 - - - 556 223 - 333 333 - - - 556
329 Muhammad Munir Butt Kashmir Paint House 7/8 Al Madina Road Township Lahore
Muhammad Munir Butt 35202-6544897-3 M Bashir Butt 193 - 309 309 - - - 501 193 - 309 309 - - - 501
330 Syed Tahir Ali Beadon Aluminium Pvt Ltd 8-Live Stock Building 16 Cooper Road Lahore
Syed Tahir Ali 35201-1587760-3 Syed Azher Ali 236 - 354 354 - - - 590 236 - 354 354 - - - 590
331 Muhammad Aslam Mukarram H No 113,Khyber Block, Allama Iqbal Town, Lahore
Muhammad Aslam Mukarram
35202-8938862-7 Chouhdry Shair Muhammad
388 - 596 596 - - - 984 388 - 596 596 - - - 984
332 Syed Ather Ali Shah Beadon Almunium Pvt B Live Stock Building 16 Cooper Road Lahore
Syed Ather Ali Shah 35201-1587734-3 Syed Azhar Ali Shah 310 - 467 467 - - - 777 310 - 467 467 - - - 777
333 Qaiser Mubarik H No 298-D Rizwan Block Awan Town Lahore
Qaiser Mubarik 33202-1382469-1 Mubarak Hussain 212 - 329 329 - - - 541 212 - 329 329 - - - 541
334 Syed Azfar Ali Beadon Aluminium 16 Cooper Road Lahore
Syed Azfar Ali 35201-1587751-1 Syed Azhar Ali 344 - 526 526 - - - 870 344 - 526 526 - - - 870
335 Syed Munawar Hussain Rizvi H No 12 Block Q Model Town Lahore
Syed Munawar Hussain Rizvi
35200-1405463-5 Syed M Sadiq Rizvi 248 - 402 402 - - - 650 248 - 402 402 - - - 650
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
336 Shahzada Ahsan Ashraf Ahsan Shahzaib Enterprises Suit No 3 5Th Floor Liberty Height 75/A Gulberg Ii Lahore
Shahzada Ahsan Ashraf 35201-8342906-9 Muhammad Ashraf 204 - 440 440 - - - 644 204 - 440 440 - - - 644
337 Syed Sohail Raza Rizvi H No 12-Q, Link Road, Model Town, ,Lahore
Syed Sohail Raza Rizvi 35200-1455456-7 Sed Munawar Hussain Rizvi
323 - 519 519 - - - 843 323 - 519 519 - - - 843
338 Muhammad Ashraf H No 3 St No 9 Ramnagar Rajgar Lahore
Muhammad Ashraf 35202-2803625-9 Ch Namet Ali 501 - 742 742 - - - 1,244 501 - 742 742 - - - 1,244
339 Muhammad Shahid Well Dress Garments Shop No 15 Ground Floor Chad Centre Rang Mehal Lahore
Muhammad Shahid 35202-2301559-1 M Ashfaq 444 - 660 660 - - - 1,103 444 - 660 660 - - - 1,103
340 Muhammad Rafique H No 8 A St No 167 A Chaman Park Baghban Pura Lahore
Muhammad Rafique 35201-1595479-7 Atta Muhammad 226 - 378 378 - - - 604 226 - 378 378 - - - 604
341 Hamid Khursheed H No 85-A Ali Block Awan Town Multan Road Lahore
Hamid Khursheed 33301-7836141-3 Muhammad Sharif 198 - 409 409 - - - 607 198 - 409 409 - - - 607
342 Syed Mashhudul Hassan Novel Technics,Off No 49-50/A Gallemar One Plaza Peco Road Township Near Mochipura Stop Lahore
Syed Mashhudul Hassan 35202-2591521-5 S Mehmood Ul Hassan 228 - 361 361 - - - 590 228 - 361 361 - - - 590
343 Faisal Javed Crown Autos Iqbal Park Near Main Gate Street 12 Defence Housing Authority Lahore Cantt
Faisal Javed 35202-2755775-9 Javed Feroz 252 - 389 389 - - - 642 252 - 389 389 - - - 642
344 Amir Ali Qureshi Photo Shop 90 Chamber Lain Road Masjid Mai Ladp,Lahore
Amir Ali 35202-5843816-5 Ghulam Hassan Qureshi 483 - 777 777 - - - 1,259 483 - 777 777 - - - 1,259
345 Najam Ul Hassan Feild Care Pvt. Ltd Office No 46 1St Floor Israr Center Block B1 Jouhar Town Lahore
Najam Ul Hassan 35202-2569243-3 Hassan Akhtar 184 - 317 317 - - - 501 184 - 317 317 - - - 501
346 Awais Khalid Awais Autos 93 Lytton Road Lahore
Awais Khalid 35201-5717535-1 M Khalid 200 - 344 344 - - - 544 200 - 344 344 - - - 544
347 Awais Mehdi Tahir Brothers 53 New Alamgeer Market Shah Alam Lahore
Awais Mehdi 35202-1643714-9 Sh Tahir 200 - 307 307 - - - 507 200 - 307 307 - - - 507
348 Jamshaid Ur Rehman Butt H No 43 Charagh Park Shadbagh Lahore
Jamshaid Ur Rehman Butt 35202-6161581-1 Muhammad Jmeel Butt 353 - 545 545 - - - 898 353 - 545 545 - - - 898
349 Syed Mohsin Ali 42- Cooper Road, Lahore
Syed Mohsin Al 35201-1444261-7 Syed Sarwat Ali 344 - 525 525 - - - 870 344 - 525 525 - - - 870
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
350 Syed Kamran Ali Beadon Aluminum Pvt Ltd 8-Live Stock Building 16-Copper Road Lahore
Syed Kamran Ali 35201-3202378-1 Syed Azhar Ali 258 - 399 399 - - - 658 258 - 399 399 - - - 658
351 Waseem Iqbal Waseem Brothers 37 Meco Steel Sheet Loha Market Landa Bazar ,Lahore
Waseem Iqbal 35102-5339575-9 242 - 401 401 - - - 643 242 - 401 401 - - - 643
352 Muhammad Shah Nawaz Ameer Cloth House Syed Bukhtiyae Shah Gillani Market Shop No 4 Pakistani Chowk Near Habib Bank Icchra Lahore
Muhammad Shah Nawaz 35202-3008007-9 Muhammad Akram 273 - 426 426 - - - 699 273 - 426 426 - - - 699
353 Muhammad Arshad Eastern Trading Corporation 11 Amin Market Nishter Road Nr Abl ,Lahore
Muhammad Arshad 35202-8788211-3 Mian Muhammad 303 - 493 493 - - - 796 303 - 493 493 - - - 796
354 Muhammad Raiz Rana Nest Builders 7 Associates 42 Commercial Zoon Defence Lane Ghazi Road ,Lahore
Muhammad Raiz Rana 35201-1485963-1 Muhammad Shafi Rana 253 - 404 404 - - - 657 253 - 404 404 - - - 657
355 Muhammad Azam Diamond Traders Suit No 7 1St Flr Farooq Centr Lahore Hotel Mcleod Road Lahore
Muhammad Azam 35202-4055981-5 Muhammad Hussain 202 - 335 335 - - - 537 202 - 335 335 - - - 537
356 Khalid Mahmood Auto Roots Workshop E-18 Ground Floor Abid Road Mian Walton Road Cantt Lahore
Khalid Mahmood 35201-2147379-1 Nazaam Din 202 - 321 321 - - - 523 202 - 321 321 - - - 523
357 Nadeem Ahmed Nashat Nishat House St No 61 S Behind Old Police Station Ghaziabad Lahore
Nadeem Ahmed Nashat 35201-1016595-3 Abdul Ghafur 203 - 334 334 - - - 537 203 - 334 334 - - - 537
358 Adeel Nazir H No 99 Feroz Din Street Tariq Colony Multan Road Sodiwal Lahore
Adeel Nazir 35202-7157147-1 Malik Muhammad Nazir 294 - 482 482 - - - 776 294 - 482 482 - - - 776
359 Muhammad Tayyab Siddiqi Al Rahim Goods 20 Baber Market 79 Ferozpur Road Lahore
Muhammad Tayyab Siddiqi 35202-2325508-7 Ashfaq Ahmed Sadiqui 201 - 331 331 - - - 532 201 - 331 331 - - - 532
360 Nadeem Sadiq Mian H No 59 A Neelam Block Allama Iqbal Town ,Lahore
Nadeem Sadiq Mian 35202-2808942-7 Choudhry Muhammad Sadiq
180 - 401 401 - - - 581 180 - 401 401 - - - 581
361 Zahid Mahmood H No 13 St No 23 Sultan Pura Lahore
Zahid Mahmood 35202-2844017-5 Tahir Mahmood 400 - 606 606 - - - 1,006 400 - 606 606 - - - 1,006
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
362 Muhammad Ali Hussain Butt 431 Nargis Block Allama Iqbal Town Lahore
Muhammad Ali Hussain Butt
35202-3228286-1 Zaheer Ud Din Butt 202 - 304 304 - - - 506 202 - 304 304 - - - 506
363 Syed Saba Sohail H No R 226 Sector 14 B Shadman Town Main Road North Karachi Karachi
Syed Saba Sohail 42101-1767918-0 Syed Sohail Ahmed 300 - 459 459 - - - 759 300 - 459 459 - - - 759
364 Sohail Sunlight Pakistan 1C Office No# 4 Second Floor 3Rd Zamzama Lane Ph 5 Dha Karachi
Sohail 42301-8867671-7 Abdul Sattar 422 - 594 594 - - - 1,017 422 - 594 594 - - - 1,017
365 Javed Ahmed Anjum Asim Shahid Rahman Moderan Motor House 3Rd Floor Beaumont Road Pidc ,Karachi
Javed Ahmed 42101-6094074-3 Muhammad Abdul Qudoos 324 - 473 473 - - - 797 324 - 473 473 - - - 797
366 Tabish Taufiq Blue Chip International Plot Number 9, Muslim Colony Smchs, Block- B Beside Ftc Building Karachi
Tabish Taufiq 42201-3836065-3 Muhammad Taufiq 207 - 308 308 - - - 514 207 - 308 308 - - - 514
367 Sabiha Junaid Farooqi The Country School C-5 Block 13-D Gulshan-E-Iqbal Karachi
Sabiha Junaid Farooqi 42201-9184430-2 Muhammad Junaid 370 - 555 555 - - - 925 370 - 555 555 - - - 925
368 Aslam Aziz Akhai 103/K Block 2 P E C H S Shahrah E Quadeen Karachi
Aslam Aziz Akhai 42201-4051658-9 Akhai Galenika 219 - 334 334 - - - 553 219 - 334 334 - - - 553
369 Mansoor Javed H No 59/1 24Th Lane Khayaban-E-Badban Dha Phase 7 Karachi
Mansoor Javed 42301-8313662-3 Iqrar Hussain 487 - 727 727 - - - 1,214 487 - 727 727 - - - 1,214
370 Syed Hussain Afaq A C B Pvt Ltd 7 Amber Castle Block 6 Shahrah-E-Faisal Karachi
Syed Hussain Afaq 42101-8143345-5 Syed Afaq Hussain 300 - 459 459 - - - 759 300 - 459 459 - - - 759
371 Shamshad Ali Memon Fl No 265/3 Zeenat Terrace Apt No 301 Byjchs 14Th Street Bahadurabad Karachi
Shamshad Ali Memon 42201-4490411-9 M W Memon 391 - 586 586 - - - 977 391 - 586 586 - - - 977
372 Syed Ibne Hasan House No R-570 Ancholi Block 20 F B Area Karachi
Syed Ibne Hasan 42101-8525951-3 Syed Hussain Mohd 370 - 565 565 - - - 935 370 - 565 565 - - - 935
373 Kaneez Sayida Acb Pvt Ltd. 7-Amber Castle Block-6 Shahrah-E-Faisal Pechs Karachi
Kaneez Sayida 42101-7673976-8 Sed Abu Jaffer 200 - 308 308 - - - 509 200 - 308 308 - - - 509
374 Abdul Rehman Khan H/No B-172 Block L Central North Nazimabad Karachi
Abdul Rehman Khan 42101-7048239-3 Abdul Rauf Khan 222 - 371 371 - - - 594 222 - 371 371 - - - 594
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
375 Alamzeb Khan H No : 39 , Street No : 2 Ahbab Colony , Thokar Niaz Baig Lahore- 53700 Lahore
Alamzeb Khan 42000-0494452-9 M Anwer Khan 215 - 321 321 - - - 536 215 - 321 321 - - - 536
376 Muhammad Irshad Ullah Qureshi House No.32 Survey No.464 Near Jannat Ul Barkat Model Colony Karachi
Muhammad Irshad Ullah Qureshi
42201-1296831-3 Muhammad Anayat Ullah Qureshi
308 - 454 454 - - - 762 308 - 454 454 - - - 762
377 Syed Taufiq Ali Mosvi Flat No A-78 Faraz Avenue Rashid Minhas Roa Gulistan-E-Johar Karachi
Syed Taufiq Ali Mosvi 42501-1509460-5 Syed Moharam Husain 301 - 461 461 - - - 761 301 - 461 461 - - - 761
378 Sheikh Abdul Hafeez Punjab Engineering Services 6-R B-12 M A Jinnah Road South Karachi
Sheikh Abdul Hafeez 42301-7311703-1 Sh Abdul Majeed 442 - 662 662 - - - 1,104 442 - 662 662 - - - 1,104
379 Syed Musharaf Ali Naqvi H No R-922 Block 20 F B Area Karachi
Syed Musharaf Ali Naqvi 42101-9654868-7 Syed Moazam Ali 491 - 735 735 - - - 1,225 491 - 735 735 - - - 1,225
380 Muhammad Sarwar A 322/2 Sector 11 G Godara Colony New Karachi ,Karachi
Muhammad Sarwar 36501-1794937-3 Nazir Ahmed 341 - 534 534 - - - 875 341 - 534 534 - - - 875
381 Wali Bhai Valika Wali Bhai Valika 61-A New Quues Road Lalazar Steet No 4 Near Boat Club Karachi
Wali Bhai Valika 42401-1987592-7 Najmuddin Wali Bhai Valika 219 - 331 331 - - - 550 219 - 331 331 - - - 550
382 Syed Shahnawaz Ahmed B-256 Block N North Nazimabad Karachi
Syed Shahnawaz Ahmed 42101-8810566-7 S Maqbool Ahmed 210 - 344 344 - - - 554 210 - 344 344 - - - 554
383 Ahmed Hussain New Indus Autos Part And Car A Shop No 21 Rashid Minhas Road Kda Flats Blk 10-A Gul-E-Iqbal Karachi
Ahmed Hussain 42000-0518887-3 Mumtaz Hussain 374 - 544 544 - - - 918 374 - 544 544 - - - 918
384 Mohammad Younus Karar Usmania Book Centre Shop No 43-A New Urdu Bazar Robson Road Urdu Bazar Karachi
Mohammad Younus Karar 42201-2749316-3 Tayyab Karar 361 - 547 547 - - - 908 361 - 547 547 - - - 908
385 Basharat Ali Khan Fahad Cargo Services, Gate 4 Quaid Azam Truck Stand, St No A-654 Gole Mkt Maripur, Hawksbay Karachi
Basharat Ali Khan 37203-5332378-7 Malik Naseer 457 - 679 679 - - - 1,136 457 - 679 679 - - - 1,136
386 Ibrahim Abdullah Abdullah Enterprises 1-J 51/3 Nazimabad No 1 Karachi
Ibrahim Abdullah 42101-8040148-9 Abdullah Sheikh 500 - 752 752 - - - 1,253 500 - 752 752 - - - 1,253
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
387 Abdul Jabbar Friends Traders A-29/P Site Near B P Bread Khi ,Karachi
Abdul Jabbar 42101-1433194-3 Abdul Sattar 457 - 674 674 - - - 1,131 457 - 674 674 - - - 1,131
388 Munir Ahmed Hashmi Dehli Pakwan Centre Hashmi Centre Sector 11-J Up More North Nr Caltex Pump Karachi
Munir Ahmed Hashmi 42101-2981746-7 Zahoor Ahmed Hashmi 493 - 710 710 - - - 1,203 493 - 710 710 - - - 1,203
389 Malik Abdul Khaliq A-19, Block I, North Nazimabad Karachi
Malik Abdul Khaliq 42000-0381103-1 Malik Abdul Jalil 341 - 540 540 - - - 881 341 - 540 540 - - - 881
390 Sheikh Muhammad Aqeel Bangla D-7Rufi Green Land Socity 13-A Shcme33 Abdul Hasanasfani Road Karachi
Sheikh Muhammad Aqeel 42000-6156658-7 Sheikh M Samir 351 - 546 546 - - - 897 351 - 546 546 - - - 897
391 Saqib Iqbal H No 133-A Sharfabad Block 3 Karachi
Saqib Iqbal 42201-7054208-7 M Iqbal Nagda 191 - 317 317 - - - 508 191 - 317 317 - - - 508
392 Imran Rafi Rafi Marble Plot # 90 Alfateh Colony Chaman Cinema Bara Board Karachi
Imran Rafi 42101-5172675-3 Rafi Uddin 480 - 724 724 - - - 1,204 480 - 724 724 - - - 1,204
393 Khursheed Ali Ansari H No A/22 Sector 11B C/O Azeem General Store North Karachi Karachi
Khursheed Ali Ansari 42101-1764316-5 M Baksh Ansari 345 - 512 512 - - - 857 345 - 512 512 - - - 857
394 Muhammad Azeem Khan Gulberg Decoration Service C/17 Block 12 Gulberg F B Area Karachi
Muhammad Azeem Khan 42201-1491397-5 M Shafi Ul Qadr 500 - 737 737 - - - 1,237 500 - 737 737 - - - 1,237
395 Muhammad Akram H No B-209 Sector 11/B North Karachi Karachi
Muhammad Akram 42101-9886460-1 Abdul Haleem 257 - 404 404 - - - 661 257 - 404 404 - - - 661
396 Abdul Samad Elegant Textile Industries Ci-59-60 Sector 16-B North Karachi Industrial Area Karachi
Abdul Samad 42201-0371566-3 Mohammad Siddique 215 - 339 339 - - - 554 215 - 339 339 - - - 554
397 Muhammad Akram H No 488/2 Ansar Colony Main Bazar Multan
Muhammad Akram 36302-3280323-7 Barkat Ali 338 - 675 675 - - - 1,013 338 - 675 675 - - - 1,013
398 Khuram Saeed Mercolink Electronics 17777/52 Lmq Road Chungi No 8 Multan
Khuram Saeed 36303-2588403-5 Muhammad Saeed 273 - 472 472 - - - 745 273 - 472 472 - - - 745
399 Muhammad Gohar Zaman H No10 Street N Block Z New Multan Multan.03007192069 Multan4550190
Muhammad Gohar Zaman 36302-3985019-3 Munawar Ahmad Khan 195 - 307 307 - - - 502 195 - 307 307 - - - 502
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
400 Sagheer Ahmed H No 236 St No 6 Muhalla Din Pura Samijabad No 1 Multan
Sagheer Ahmed 36302-0334248-3 Muhammad Ramzan 285 - 470 470 - - - 756 285 - 470 470 - - - 756
401 Mirza Sultan Mehmood Baig H No 2161-W8M Muhalla Cheeta Wan Shah Rassal Road Multan
Mirza Sultan Mehmood Baig
36302-2554218-9 Mirza Mukhtar Ahmed Baig 302 - 436 436 - - - 738 302 - 436 436 - - - 738
402 Fayyaz Ul Hassan W S Farms New Mubarik Pura Rodas Road Road Sialkot Sialkot
Fayyaz Ul Hassan 34603-7209250-9 Ch Muhammad Ishaq 451 - 699 699 - - - 1,150 451 - 699 699 - - - 1,150
403 Ali Faroqq Cheema Sardar Pak Daska Road, Nr,Tata Factory, ,Sialkot
Ali Faroqq Cheema 34603-4833812-7 Farooq Ahmed Cheema 339 - 524 524 - - - 862 339 - 524 524 - - - 862
404 Bilal Bashir King Z Sports Kashmir Road, Sublime Chowk, ,Sialkot
Bilal Bashir 34603-9479420-9 Muhammad Bashir 389 - 617 617 - - - 1,006 389 - 617 617 - - - 1,006
405 Umer Farooq Cheema Sardar Pak Po Box No 20, Daska Road,Nr Recto Sports, ,Sialkot
Umer Farooq Cheema 34603-3583001-7 Choudhary Farooq Ahmed Cheema
197 - 313 313 - - - 510 197 - 313 313 - - - 510
406 Ejaz Ahmad Ejaz Brothers Muhalla Haji Pura Fateh Garh Road Sialkot
Ejaz Ahmad 34603-5446143-3 Muhammad Nawaz 291 - 420 420 - - - 711 291 - 420 420 - - - 711
407 Rehan Iqbal New Decent Medicose 33 Ali Park New Civil Line Pak Pura Sialkot
Rehan Iqbal 34603-6803925-1 Sheikh M Iqbal 300 - 465 465 - - - 765 300 - 465 465 - - - 765
408 Rizwan Iqbal New Decent Medicose 33-Ali Park New Civil Line Pak Pura Sialkot
Rizwan Iqbal 34603-6802975-1 Muhammad Iqbal 308 - 478 478 - - - 785 308 - 478 478 - - - 785
409 Muhammad Ali Raza Mekasomed Enterprises St No 2 Muhalla Islamabad Ugoki O-O Khas Sialkot
Muhammad Ali Raza 34603-0434281-1 Muhammad Irshad 202 - 323 323 - - - 524 202 - 323 323 - - - 524
410 Jamshed Ali Nazeer Xray And Ultrasound Masjid Road Jamia Masjid ,Nawabshah
Jamshed Ali 45402-2000384-5 Ghulam Rasool 402 - 622 622 - - - 1,024 402 - 622 622 - - - 1,024
411 Intzar Hussain Talah And Shaikh Brothers Station Road Sakrand ,Nawabshah
Intzar Hussain 42101-3758542-1 Nizam Ul Din 196 - 326 326 - - - 522 196 - 326 326 - - - 522
412 Sharif Ud Din Village Tali P/O Taluka Sakran D Taluka Sakrand Nawabshah
Sharif Ud Din 45403-0793753-9 Moin Uddin 464 - 742 742 - - - 1,206 464 - 742 742 - - - 1,206
413 Shakeel Ahmed Grace Silk Centre Tayaba Shop No 10 Katchery Road ,Nawabshah
Shakeel Ahmed 45402-7513523-3 Basher Ahmed 249 - 415 415 - - - 664 249 - 415 415 - - - 664
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
414 Nadeem Muzaffar H No F-52 Mohalla Neha Bazar, Jehlum ,Jhelum
Nadeem Muzaffar 37301-2343251-1 Muzaffar Hussain Qureshi 176 - 425 425 - - - 601 176 - 425 425 - - - 601
415 Syed Raza Hussain Shah Syed Traders Railway Line Saray Alamgir ,Jhelum
Syed Raza Hussain Shah 34203-7819228-5 Syed Shahzada Hussain Shah
202 - 324 324 - - - 527 202 - 324 324 - - - 527
416 Imran Safdar S R Traders Lahore More Jhelum ,Jhelum
Imran Safdar 37301-2277326-3 Safdar Ali Khan 232 - 349 349 - - - 581 232 - 349 349 - - - 581
417 Hafiz Waqas Mazhar Shaikh Communication Ufone Dea Gt Road Dina ,Jhelum
Hafiz Waqas Mazhar 34202-5075757-3 Muhammad Mazhar Hussain
202 - 323 323 - - - 525 202 - 323 323 - - - 525
418 Khawar Mushtaq Chisti H No B-Iii-1761, Chishti Lodge, Mohalla Chishtian, ,Bahawalpur
Khawar Mushtaq Chisti 31202-8141901-9 Muhammad Mushtaq Hussain Chist
205 - 305 305 - - - 510 205 - 305 305 - - - 510
419 Shahzad Ahmed Aero Pak 6-A Trust Plaza Gt Road Gujranwala
Shahzad Ahmed 34101-3494036-1 Sarfaraz Ahmed 338 - 518 518 - - - 856 338 - 518 518 - - - 856
420 Muhammad Kashif Kashif And Brothers Mineral Tr Deuora Phatak Gt Road Gujranwala
Muhammad Kashif 34101-2729673-3 Muhammad Aslam 243 - 380 380 - - - 623 243 - 380 380 - - - 623
421 Naveed Asghar H.49 Cb Bazar Area Gujranwala Cantt Gujranwala Gujranwala
Naveed Asghar 34101-6455041-5 Asghar Ali Cheema 206 - 307 307 - - - 513 206 - 307 307 - - - 513
422 Muhammad Munir H No 8 Gali Iqra School Wali Shaheen Abad P O Climax Abad Gujranwala
Muhammad Munir 34101-9106430-1 Muhammad Nazeer 294 - 449 449 - - - 744 294 - 449 449 - - - 744
423 Chaudhay Khuram Shah Nawaz Al Hamd Traders Al Hamd Group Gill Road Hameed Colony ,Gujranwala
Chaudhay Khuram Shah Nawaz
34101-2458031-5 Shahnawaz Chaudhary 265 - 389 389 - - - 654 265 - 389 389 - - - 654
424 Mujahid Iqbal Alvi Steel Decorater Alvi Gril Maker Main Gt Road Mor Eminabad Nr Railway Cros,Gujranwala
Mujahid Iqbal 34101-2632687-9 Muhammad Ashraf 245 - 371 371 - - - 616 245 - 371 371 - - - 616
425 Muhammad Rafaq Younas & Sons Usman Colony,St.4,Galla Patwar I Wala,Noshera Road, Gujranwala
Muhammad Rafaq 34101-4349000-3 Muhammad Younis 248 - 366 366 - - - 614 248 - 366 366 - - - 614
426 Muhammad Fakhr Ul Zaman Dogar Zaman Grain Market Pakpattan ,Sahiwal
Muhammad Fakhr Ul Zaman Dogar
36402-5151984-7 Sardar Nawazish Ali 219 - 322 322 - - - 541 219 - 322 322 - - - 541
427 Ghulam Safdar Gulsan Farid Colony Raliway Road H No 2 Gali No 2 Pakpattan
Ghulam Safdar 36402-8480735-3 Nawab 198 - 318 318 - - - 516 198 - 318 318 - - - 516
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
428 Jamshaid Bashir H No 350 St B-Vii Fateh Shair Colony Sahiwal
Jamshaid Bashir 36502-3493021-9 Bashir Ahmed 424 - 614 614 - - - 1,038 424 - 614 614 - - - 1,038
429 Saleem Hashmat Indus Tv Network 3Rd Floor Shafi Courts Meriwethar Road Saddar Karachi
Saleem Hashmat 42201-7613715-3 Kanwer Hashmat 483 - 712 712 - - - 1,195 483 - 712 712 - - - 1,195
430 Syed Zeeshan Abbas H No R-604 Sector 15-A-4 Buffer Zone North Karachi, Karachi
Syed Zeeshan Abbas 42101-1421211-5 Syed Nisar Abbas 326 - 501 501 - - - 827 326 - 501 501 - - - 827
431 Shaikh Abdul Rahim Plastic Technology Centre College Of Polymer Engineering St-2/1 Sec 30 Korangi I Area Karachi
Shaikh Abdul Rahim 42201-2315997-3 Abdul Rasheed 231 - 367 367 - - - 598 231 - 367 367 - - - 598
432 Mirza Raza Amir H No R-144 Block 6 Gulshan-E-Iqbal Karachi
Mirza Raza Amir 42201-1088114-7 Mirza M Hassan 206 - 331 331 - - - 537 206 - 331 331 - - - 537
433 Missbha Ud Din 1St Floor, 287,P.I.B Colony ,Karachi
Missbha Ud Din 42201-0739347-5 Ashfaq Ahmad Kharimi 260 - 396 396 - - - 655 260 - 396 396 - - - 655
434 Syed Yawar Abbas H No R-604 Sector 15-A-4 Buffer Zone North Karachi ,Karachi
Syed Yawar Abbas 42101-0479818-5 Syed Nissaer Abbas 422 - 633 633 - - - 1,056 422 - 633 633 - - - 1,056
435 Muhammad Rashid Khan Banglow No 57 Sheet No 22 Model Colony Malir Karachi
Muhammad Rashid Khan 42000-4592277-3 Vilayat Khan 213 - 333 333 - - - 546 213 - 333 333 - - - 546
436 Irfan Sattar H No B-52 City Homes Block 13-D-2 Gulshan-E-Iqbal ,Karachi
Irfan Sattar 42201-0593918-5 Abdul Sattar 404 - 598 598 - - - 1,002 404 - 598 598 - - - 1,002
437 Moona Farhan 332-334 2Nd Floor Fl No 3 Qasi Center Block 2 Pechs ,Karachi
Moona Farhan 42201-1643152-4 Muhammad Farhan Qureshi
502 - 775 775 - - - 1,277 502 - 775 775 - - - 1,277
438 Mushtaq Ali Jivani Flat No C-106 Ml Paradise Nishter Park Solder Bazar No 2 ,Karachi
Mushtaq Ali Jivani 42301-0847957-1 Hussain Ali 502 - 753 753 - - - 1,255 502 - 753 753 - - - 1,255
439 Mohammed Junaid Decent Cars 148-A Alama Iqbal Road Block 2 Pechs Karachi
Mohammed Junaid 42201-9461111-9 Muhammad Saleem 252 - 399 399 - - - 651 252 - 399 399 - - - 651
440 Muhammad Imran H No B-1/2 Block A Kazimabad Model Colony ,Karachi
Muhammad Imran 42201-9329481-7 Muhammad Suleman 286 - 464 464 - - - 750 286 - 464 464 - - - 750
441 Syed Tahir Hasan Tahir Furniture Plot No C-7 Ishaqabad Sir Shah Suleman Road F B Area Karachi
Syed Tahir Hasan 42101-0331090-9 S Azhar Hasan 260 - 432 432 - - - 691 260 - 432 432 - - - 691
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
442 Muhammad Imran Kayani Pak Autos 78 - C 22 Commercial Street Dha Phase 2 Extension Karachi
Muhammad Imran Kayani 42201-0609905-7 M Sabir Kayani 503 - 806 806 - - - 1,309 503 - 806 806 - - - 1,309
443 Mohammad Amin Mughal Plot No 385 No 5 Allama Iqbal Colony Mehmoodabad Karachi
Mohammad Amin Mughal 42301-0800937-9 Allah Dita 222 - 359 359 - - - 581 222 - 359 359 - - - 581
444 Farhan Ibrahim Flat No A 38 Block 20 Mazia Square Al Noor More F B Area Karachi
Farhan Ibrahim 42101-1554481-3 Ibrahim 347 - 555 555 - - - 902 347 - 555 555 - - - 902
445 Syed Imtiaz Ul Haq Bukhari C-26 Block No 6 Gulshan E Iqbal Karachi
Syed Imtiaz Ul Haq Bukhari 42201-2983522-1 Anzar Ul Haq 395 - 638 638 - - - 1,033 395 - 638 638 - - - 1,033
446 Muhammad Zia Khalil Khalil Packages L-29/B Block 21 F B Industrial Area Karachi
Muhammad Zia Khalil 42201-6524810-7 Muhammad Khalil 442 - 678 678 - - - 1,120 442 - 678 678 - - - 1,120
447 Asif Moin H No R-555 Sector 15-B Buffer Zone North Karachi Karachi
Asif Moin 42101-8147430-9 Moin Ud Din 494 - 758 758 - - - 1,252 494 - 758 758 - - - 1,252
448 Abdul Raheem Johar North Communication Near Data Flying Coach Bahawalnagar
Abdul Raheem Johar 31101-1663240-3 Muhammad Shoaib Paracha
220 - 468 468 - - - 688 220 - 468 468 - - - 688
449 Abdul Qadir A-9 Rehmanabad Near Al Noor Biryani Centre Drigh Road Karachi
Abdul Qadir 42201-0469800-7 Qazi Abdul Malik 503 - 806 806 - - - 1,308 503 - 806 806 - - - 1,308
450 Kamran Hussain Quality Car Decoration Point Shop No 3 Al Siraj Square Block 14 F B Area Karachi
Kamran Hussain 42101-8037228-3 Zahoor Hussain 502 - 780 780 - - - 1,282 502 - 780 780 - - - 1,282
451 Riaz Ahmed Millat Book Point Shop No 493-1 Bangla Bazar Sec 15-A Orangi Town Karachi
Riaz Ahmed 42401-1945091-1 Abdul Ghafoor 502 - 739 739 - - - 1,241 502 - 739 739 - - - 1,241
452 Syed Aamir Iqbal Quality Textile Plot No 240 11-E Orangi Town ,Karachi
Syed Aamir Iqbal 42101-0276643-1 Syed Iqbal Hussain 502 - 778 778 - - - 1,280 502 - 778 778 - - - 1,280
453 Muhammad Tasneem Ul Haq Flat No B-18 Nadeem Arcade 4 Th Floor Shadman Town Sec 14-B North Nazimabad Town Karachi
Muhammad Tasneem Ul Haq
42101-1108324-5 Muhammad Zaheer Ul Haq 336 - 543 543 - - - 879 336 - 543 543 - - - 879
454 Raja Jawed Sultan H No 739/19 Al Noor Socieity F B Area ,Karachi
Raja Jawed Sultan 42101-3099261-1 Raja Muhammad Inyat Khan
502 - 790 790 - - - 1,292 502 - 790 790 - - - 1,292
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
455 Altaf Hussain Arsal Metal Scarp Plot No 125 Gali No 11 Block A Sher Shah Karachi
Altaf Hussain 35201-1690262-7 Gulam Hussain 490 - 734 734 - - - 1,223 490 - 734 734 - - - 1,223
456 Khawaja Zaheer Ahmed Fl No A-31 4Th Floor Noman Avenue Rashind Minhas Gulistan-E-Johar Karachi
Khawaja Zaheer Ahmed 42101-1416840-3 Khawaja Nazeer 307 - 484 484 - - - 791 307 - 484 484 - - - 791
457 Adnan H No R-101 Block 5 Azizabad F B Area Karachi
Adnan 42101-1847436-5 Fazal Mehmood 470 - 743 743 - - - 1,212 470 - 743 743 - - - 1,212
458 Muhammad Anis H No 4/377 Street 4 Liaquatabad Karachi
Muhammad Anis 42101-1938382-9 Mohammad Hanif 329 - 618 618 - - - 947 329 - 618 618 - - - 947
459 Shaikh Mohammad Yousuf Abbasi Shaheed Chemist, Shop No.3-8-8/39, Near Abbasi Shaheed Hospital, Karachi
Shaikh Mohammad Yousuf 42101-7289624-9 Shaikh Mohammad Younus 502 - 767 767 - - - 1,269 502 - 767 767 - - - 1,269
460 Ahmed Mehmood Bangee Ahmed Mamoojee Bangee 9/5 Qazi Court Bldg Boulton Market Road Karachi
Ahmed Mehmood Bangee 42101-1750319-5 Mahmood Dawood 434 - 690 690 - - - 1,124 434 - 690 690 - - - 1,124
461 Muhammad Aamir Khurshid Malik Rehman Interpreises Shop No 1410 Chalias Ka Road Sector 8-L Orangi Town Karachi
Muhammad Aamir Khurshid Malik
42401-3263428-5 Muhammad Abdul Rehman 190 - 312 312 - - - 503 190 - 312 312 - - - 503
462 Abdul Sattar Sattar Brothers Plot No C-6 Ishaqabad Shah Suleman Road Liaquatabad Karachi
Abdul Sattar 42101-1809933-9 Iqrar Hussain 490 - 761 761 - - - 1,251 490 - 761 761 - - - 1,251
463 Hassan Sardar 43-C Scheme 33 Block 1A Gulistan-E-Johar ,Karachi
Hassan Sardar 42201-6786905-9 Sardar Ali 495 - 729 729 - - - 1,225 495 - 729 729 - - - 1,225
464 Momen Khan Momen Khan Block And Tile Beam Plot No 7 St /7 Universal Town Korangi No 1-1/2 Pappan Chowk,Karachi
Momen Khan 42201-3515741-5 Mohammad Ghani 223 - 346 346 - - - 569 223 - 346 346 - - - 569
465 Mohammad Saleem H No R-122 Sector 15 A-3 Buffer Zone North Karachi ,Karachi
Mohammad Saleem 42101-1189824-7 Mohammad Ismail 323 - 518 518 - - - 842 323 - 518 518 - - - 842
466 Nain Ul Raza Shabbir Mobiles Point,Shop No A-1 Saima Drivein Mob Elec Mall Adj Honda Sh.Room Rashid Minhas Rd Karachi
Nain Ul Raza Shabbir 42201-2933242-5 Shabbir Ahmed Qazi 433 - 685 685 - - - 1,118 433 - 685 685 - - - 1,118
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
467 Afzal Mehmood Khan H No R-421 Sector 14-A Shadman Town North Nazimabad ,Karachi
Afzal Mehmood Khan 42101-2958411-3 Muhammad Mahmood Khan
504 - 782 782 - - - 1,287 504 - 782 782 - - - 1,287
468 Muhammad Nasir H No 63 Sector 6-C Orangi Town Karachi
Muhammad Nasir 42401-2630782-5 Abdul Habib 483 - 769 769 - - - 1,252 483 - 769 769 - - - 1,252
469 Muhammad Adeel Irshad Ishaq Brothers Jewellers 5-A-12/17-1 Sarafa Bazar Paposh Nagar, Nazimabad Karachi
Muhammad Adeel Irshad 42101-1797703-7 Irshad Ahmed Qureshi 494 - 742 742 - - - 1,236 494 - 742 742 - - - 1,236
470 Malik Muhammad Shakil Plot No-D/17, Shop No-I & 3 Shah Faisal Colony No-1 Eat Karachi
Malik Muhammad Shakil 35202-5832996-1 448 - 669 669 - - - 1,116 448 - 669 669 - - - 1,116
471 Muhammad Ejaz Taimori Fl No A-102 Block A Prime Arcade Metrovil 3Rd Blk Gulzar-E-Hijri Karachi
Muhammad Ejaz Taimori 42201-0450171-9 Bidar Bukht 502 - 779 779 - - - 1,282 502 - 779 779 - - - 1,282
472 Muhammad Saleem Fl No 9/10 1St Floor Romaan Building Robson Road Burns Road Karachi
Muhammad Saleem 42301-9242268-3 Ghulam Mohammad 329 - 556 556 - - - 885 329 - 556 556 - - - 885
473 Mohammad Saleem 5,C/2 L 399. Bilal Town North Karachi ,Karachi
Mohammad Saleem 42101-3640528-3 Abdul Qadir 355 - 558 558 - - - 913 355 - 558 558 - - - 913
474 Sikander Ali Khan B 52/1 Malir Khokharapar No 5 ,Karachi
Sikander Ali Khan 42501-6897696-5 Abdul Ghaffar 418 - 640 640 - - - 1,058 418 - 640 640 - - - 1,058
475 Iftikhar Ahmed Baqai House No.106-H,First Floor, Block:2,P.E.C.H.S, Distt.East, Karachi
Iftikhar Ahmed Baqai 42301-0754508-9 Anzar Ahmed 256 - 398 398 - - - 653 256 - 398 398 - - - 653
476 Sohail Muhammad Qureshi H No 24 Coustodin Area Old Sabzi Mandi No 2 ,Karachi
Sohail Muhammad Qureshi 42201-2957437-9 Aamer Mohammad Qureshi 473 - 732 732 - - - 1,204 473 - 732 732 - - - 1,204
477 Mohd Naeem Ud Din Sidque Naimuddin And Company Suit No 10 Ebrahim Building West Wharf Road Karachi
Mohd Naeem Ud Din Sidque
42101-1704220-7 Ghulam Moinuddin 244 - 390 390 - - - 633 244 - 390 390 - - - 633
478 Sheikh Abdul Rehman Rehman Traders Off 45 Hemani Center,Bottle Street Shahrah-E-Liaquat,Light House Karachi
Sheikh Abdul Rehman 42301-4507311-5 Sheikh Ihsan Ellahi 490 - 741 741 - - - 1,231 490 - 741 741 - - - 1,231
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
479 Pervaiz Iqbal Zahid 14-Shaheed -E-Millat Market Near Millat Chowk Sheikupura Road Faisalabad Faisalabad
Pervaiz Iqbal Zahid 33100-0945243-9 Abdul Ghani 301 - 464 464 - - - 765 301 - 464 464 - - - 765
480 Waseem Ahmad H No 181 Block-C Gulberg Colony Faisalabad
Waseem Ahmad 33100-3470946-3 Ch Abdul Rasheed 492 - 734 734 - - - 1,225 492 - 734 734 - - - 1,225
481 Muhammad Naeem Al Madina Oxygen Gas Works Opp Crecent Textile Mills Sargodha Road Faisalabad
Muhammad Naeem 33100-8060994-1 Wazir Ali 278 - 568 568 - - - 846 278 - 568 568 - - - 846
482 Muhammad Iftikhar Sun Gas Distributor P-72-A St No 3 Officer Colony No 2 Faisalabad
Muhammad Iftikhar 33100-3182124-1 Nayaz Muhammad 447 - 638 638 - - - 1,085 447 - 638 638 - - - 1,085
483 Imtiaz Ahmad Abdul Rasheed & Abdul Majeed & Shop No 37 Rehmania Road Old Fruit Vegitable Market Faisalabad
Imtiaz Ahmad 33100-3299091-3 Abdul Majeed 210 - 330 330 - - - 540 210 - 330 330 - - - 540
484 Muzifuddin Muhammad Faisal Warid Telecom Ahmed Arcade Canal Road Abdullah Pur Faisalabad
Muzifuddin Muhammad Faisal
35200-8575195-1 Syed Safir Udine 251 - 392 392 - - - 643 251 - 392 392 - - - 643
485 Muhammad Ilyas H No P-104 St No 1 Kehkashan Colony No 2 Hassan Park Juranawala Road Faisalabad
Muhammad Ilyas 33100-1108397-5 Bashir Ahmad 420 - 619 619 - - - 1,039 420 - 619 619 - - - 1,039
486 Abdul Sattar Shahid H No P-188 St No 3 Ali Block Haseeb Shaheed Colony Faisalabad
Abdul Sattar Shahid 35303-6748636-9 Bashir Ahmad Bhatti 297 - 463 463 - - - 760 297 - 463 463 - - - 760
487 Nisar Ahmad Malik Kamil Ahsan Foundaion Secondar H No 309-A Gulberg National Hospital Faisalabad
Nisar Ahmad Malik 33100-0989432-3 Malik Abdul Haq Kamil 403 - 626 626 - - - 1,029 403 - 626 626 - - - 1,029
488 Muhammad Nawaz H No P-193 St No 11 Ayoub Colony Jhang Road Faisalabad
Muhammad Nawaz 33100-0710411-3 Rashid Ahmad 297 - 449 449 - - - 746 297 - 449 449 - - - 746
489 Muhammad Ashiq H No P-18/4 Kothian Wali Gali Partab Nagar Jhang Road Faisalabad
Muhammad Ashiq 33100-3893874-1 Noor Muhammad 303 - 449 449 - - - 752 303 - 449 449 - - - 752
490 Shamim Akhtar H No 302/8 St No 8 Nemat Colony No 2 Faisalabad
Shamim Akhtar 33100-2673525-4 Rana Ali Ahmed 377 - 546 546 - - - 924 377 - 546 546 - - - 924
491 Feryad Ali H No P-423 St No 5/3 Feroz Shah Feroz Shah 224 Munshi Fateh Di Faisalabad
Feryad Ali 33100-0637264-5 Abdul Rehman 202 - 312 312 - - - 514 202 - 312 312 - - - 514
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
492 Muhammad Naveed Razaq Nabil Jewellers Sh No 1 St No 5 Begum Market Anarkali Bazar Makka Jewellers,Faisalabad
Muhammad Naveed Razaq 33100-6357979-9 Muhammad Razaq 202 - 307 307 - - - 509 202 - 307 307 - - - 509
493 Malik Talib Hussain Shama Trading/Ms 7 Group P-1320/21 Block D-A Ghulam Muhammad Abad Faisalabad
Malik Talib Hussain 33102-4553005-7 Malik Abdul Ghani 303 - 485 485 - - - 788 303 - 485 485 - - - 788
494 Sohail Akhter Tipoo Carbon Cube Technologies Suite No.20,Ist Floor,Capital Plaza,Behind Pso Gas Station Markaz G-11, Islamabad
Sohail Akhter Tipoo 61101-0295144-9 Akhter Baig 215 - 335 335 - - - 549 215 - 335 335 - - - 549
495 Nasir Hussain E-Mart Shop G-05,Panorama Cent Double Rd,Cricket Stadium Rawalpindi
Nasir Hussain 61101-4083051-1 Sheikh Tassaduq Hussain 192 - 406 406 - - - 598 192 - 406 406 - - - 598
496 Muhammad Ilyas Sheikh Latif Medical Centre Trade Centre F-11 Markaz Islamabad
Muhammad Ilyas Sheikh 61101-5058257-7 Sheikh Abdul Latif 482 - 677 677 - - - 1,159 482 - 677 677 - - - 1,159
497 Ausaf Manzoor Member Co Ordination Overseas Wing National Bureau Ata Turk Avenue G-5/2 Islamabad
Ausaf Manzoor 61101-2780889-7 Khawaja Ahmed Manzoor 203 - 316 316 - - - 519 203 - 316 316 - - - 519
498 Malik Zulfiqar Ahmed Rawalpindi College Of Commerce Off No F-746 Satellite Town Rawalpindi
Malik Zulfiqar Ahmed 61101-5487395-5 Malik Mir Mohammad 270 - 403 403 - - - 673 270 - 403 403 - - - 673
499 Shafqat Ullah Malik Flat No 2-B Bazar No 11 I-10/4 Near Javed Market Islamabad
Shafqat Ullah Malik 61101-0645804-3 Faqir M Malik 416 - 626 626 - - - 1,042 416 - 626 626 - - - 1,042
500 Raja Fazal Hussain Cave Off No 1-B Awan Arcade Jinnah Avenue Blue Area ,Islamabad
Raja Fazal Hussain 61101-8323776-3 Raja Muhammad Ameer 414 - 644 644 - - - 1,058 414 - 644 644 - - - 1,058
501 Sajad Ali Pirzado Ali Movies Video Market Resham Gali ,Larkana
Sajad Ali Pirzado 43203-4117885-9 Ali Muhammad Pirzado 256 - 411 411 - - - 668 256 - 411 411 - - - 668
502 Imranullah Imran Paint House Bank Al Falah Bander Road ,Larkana
Imranullah 43203-9417865-7 Abdullah Abro 493 - 742 742 - - - 1,236 493 - 742 742 - - - 1,236
503 Abdul Khalique Qureshi Banglow No 1 Street No 1 Srtc Colony Thandi Sarak Hyderabad
Abdul Khalique Qureshi 41306-1111377-7 Qamar Uddin Qureshi 502 - 753 753 - - - 1,255 502 - 753 753 - - - 1,255
504 Muhammad Shakir Variety Shoes Store Shop 2581 Seright Road Hyderabad
Muhammad Shakir 41303-4277041-9 Islam Uddin 486 - 744 744 - - - 1,230 486 - 744 744 - - - 1,230
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
505 Husnain Raza Sayni New Hussaini Furnitures Shop 15/A Ground Floor Al Amna Complex Alamgir Road Hyderabad
Husnain Raza Sayni 41303-2173976-9 Ameer Ali 204 - 313 313 - - - 517 204 - 313 313 - - - 517
506 Rafaquat Ali Asghar Ali M/S Faizan-E-Fareed Cloth Stor Shop 181-182 Azeem Us Shan New Cloth Market ,Hyderabad
Rafaquat Ali Asghar Ali
41303-2342569-9 Shafquat Ali 394 - 621 621 - - - 1,015 394 - 621 621 - - - 1,015
507 Imtiaz Hussain Tunio Imtiaz Hussain And Brothers Ge Shop No 1 Ali Palace Road Qasimabad ,Hyderabad
Imtiaz Hussain Tunio Imtiaz Hussain Tunio
41306-0862873-3 Sahib Dino 292 - 449 449 - - - 741 292 - 449 449 - - - 741
508 Ilamud Din Keerio Faisal Builders Shop No B-28 Ground Floor Gmb Colony Qasimabad Mary Land Hosp,Hyderabad
Ilamud Din Keerio 45205-4950879-1 Muhammad Wazir Keerio 474 - 715 715 - - - 1,188 474 - 715 715 - - - 1,188
509 Imran Ali Contact Plus Dept Marketing Banglow No A/45 Unit No 3 Latifabad Hyderabad
Imran Ali 44203-9391107-1 Ghulam Qadir 219 - 335 335 - - - 554 219 - 335 335 - - - 554
510 Muhammad Pervaiz H No 271 St No 3 Masjid Sadiq Akbar Muqaam E Hayat Sargodha
Muhammad Pervaiz 38403-8568180-9 Allah Ditta 196 - 304 304 - - - 500 196 - 304 304 - - - 500
511 Muhammad Imran Khan H No 15/7, Block Z Iqbal Colony Sargodha
Muhammad Imran Khan 38403-2064240-5 Abdul Rauf Khan 292 - 453 453 - - - 745 292 - 453 453 - - - 745
512 Sabir Ali Info Tech Systems Services 91-Ground Flr Trust Plaza Sharja Mobile ,Sargodha
Sabir Ali 38403-9928925-7 Rao Nasir Ali 203 - 301 301 - - - 505 203 - 301 301 - - - 505
513 Muhammad Nadeem Shahzad Bhatti Iqra Traders Chowk Block No 20 Nr Younis Tika Shop ,Sargodha
Muhammad Nadeem Shahzad Bhatti
35201-1443768-7 Munawar Hussain Shahzad 287 - 432 432 - - - 719 287 - 432 432 - - - 719
514 Babar Zulfiqar H No 229 Gali No 4 Gulshan Hayat Colony Near Civil Hospital Sargodha
Babar Zulfiqar 38403-2221053-3 Zulfiqar Ali 223 - 330 330 - - - 553 223 - 330 330 - - - 553
515 Yasir Adeel 91 Near Road Grain Market Sargodha
Yasir Adeel 38403-2237390-3 Shaikh Majeed Ahmed 233 - 368 368 - - - 601 233 - 368 368 - - - 601
516 Muhammad Hafeez Ur Rehman New Malik Medical Store Block 1 Post Office Road Tma Chowk,Sargodha
Muhammad Hafeez Ur Rehman
38401-0305966-9 Mehboob Ahmad 297 - 440 440 - - - 736 297 - 440 440 - - - 736
Annexure 'B' as referred to in note 10.4 of the Bank's Unconsolidated and Consolidated Financial StatementsDetails of loans write offs of Rs. 500,000 and above Rs. in '000
S.No. Name and AddressName of individuals /
partners / proprietors / directors
CNIC Number Father / Husband Name Principal Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total Principal
Interest / Markup (Debited)
Interest / Markup
(Undebited)
Interest / Markup (Total)
Others (Debited)
Others (Undebited)
Others (Total) Total
At the beginning Written off
517 Muhammad Waqas Shafi H No 100,St No 3 Canal Park Sarogodha
Muhammad Waqas Shafi 38403-4143244-7 Muhammad Shafi 199 - 303 303 - - - 502 199 - 303 303 - - - 502
518 Asim Shehzad Chak Umra Post Office Khas Chakwal
Asim Shehzad 37201-1787246-3 Manzoor Hussain 502 46 - 46 34 - 34 583 502 46 - 46 34 - 34 583
519 Siddique Aslam Building # 13-C, Street # 3 2Nd Floor Small Bhukhari Commercial Dha Phase Vi
Siddique Aslam 35202-6097017-5 Mohammad Aslam Gondal 439 61 - 61 16 - 16 516 439 61 - 61 16 - 16 516
520 Sh M Shafi 5 Canal Park Gulberg Ii
Sh M Shafi 35202-1783443-5 Abdul Ghani 484 57 - 57 13 - 13 554 484 57 - 57 13 - 13 554
521 Ali Raza Cheema H No P 275 Main Road Sarfraz Colony
Ali Raza Cheema 33100-3794977-7 Shukat Ali Chima 509 68 - 68 24 - 24 601 509 68 - 68 24 - 24 601
522 Nasim Ahmed H No 41-A/2 11Th Street Phase 2 Dha South
Nasim Ahmed 42301-2904036-5 Manzoor Ul Haq 486 59 - 59 18 - 18 562 486 59 - 59 18 - 18 562
523 Tauqir Hussain H No 334 Block X Dha
Tauqir Hussain 35201-1494766-5 M Hussain Shah 455 46 - 46 12 - 12 513 455 46 - 46 12 - 12 513
- Total 3,443,256 1,083,905 910,572 1,994,477 116 - 116 5,437,849 1,901,454 1,207,806 906,044 2,113,850 116 1,419 1,535 4,016,838
Disposals of operating fixed assets during the year 2016
Items having book value of more than Rs. 250,000or cost of more than Rs. 1,000,000
Land & BuildingFreehold Land
Saleh Muhammad Street Branch, Karachi 27,357 - 27,357 29,000 Auction Afzal Habib Rampart Raow, Karachi 9,568 - 9,568 10,500 Auction Muhammad Asif Zai
36,925 - 36,925 39,500Vehicles
Mercedes Benz CGI 8,713 7,841 872 1,743 Buy Back Aameer Karachiwalla - EmployeeMercedes Benz CGI 8,766 7,889 877 1,753 Buy Back Muhammad Ejazuddin - EmployeeMercedes Benz CGI 8,731 7,857 874 1,746 Buy Back Aqeel Ahmed Nasir - EmployeeHonda Accord 2,800 2,520 280 1,038 Auction Nusrat Iqbal
#### Toyota Corolla 1,014 913 101 903 Auction Saeed Ur Rehman#### Toyota Corolla 1,014 913 101 927 Auction Nusrat Iqbal#### Toyota Corolla 1,014 913 101 910 Auction Nusrat Iqbal#### Toyota Corolla 1,014 913 101 922 Auction Nusrat Iqbal#### Toyota Corolla 1,014 913 101 922 Auction Nusrat Iqbal#### Toyota Corolla 1,309 1,178 131 706 Auction Sultan Hassan Khan#### Toyota Corolla 1,014 913 101 918 Auction Nusrat Iqbal#### Toyota Corolla 1,014 913 101 880 Auction Said Faqir#### Toyota Corolla 1,014 913 101 933 Auction Nusrat Iqbal#### Toyota Corolla 1,014 913 101 943 Auction Nusrat Iqbal#### Honda Civic 1,043 939 104 770 Auction Zahid Qadri#### Toyota Corolla 1,014 913 101 925 Auction Nusrat Iqbal#### Toyota Corolla 1,389 1,250 139 978 Auction Nusrat Iqbal#### Toyota Corolla 1,389 1,250 139 1,015 Auction Khalid Anwar#### Toyota Corolla 1,389 1,250 139 964 Auction Nusrat Iqbal#### Toyota Corolla 1,411 1,270 141 939 Auction Muhammad Nasir Khan#### Toyota Corolla 1,389 1,250 139 887 Auction Nusrat Iqbal#### Toyota Corolla 1,389 1,250 139 964 Auction Nusrat Iqbal#### Toyota Corolla 1,389 1,250 139 1,021 Auction Khalid Anwar#### Toyota Corolla 1,324 1,192 132 1,013 Auction Sultan Zaib#### Toyota Corolla 1,389 1,250 139 974 Auction Nusrat Iqbal#### Suzuki Jimmy 1,857 1,857 - 978 Auction Muhammad Siddiuqe#### Toyota Corolla 1,389 1,250 139 938 Auction Nusrat Iqbal
57,206 51,673 5,533 27,610
Electrical, office andcomputer equipment
Atm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 106 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 106 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 106 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 1,014 1,014 - 104 Auction Innovative Pvt LtdAtm Machine 892 260 632 104 Auction Innovative Pvt LtdGenerator 2,151 2,151 - 523 Auction Alhaj Global
12,169 11,537 632 1,569
Items having book value of less than Rs. 250,000and cost of less than Rs. 1,000,000
Others 90,185 86,345 3,840 22,524 Total 196,485 149,555 46,930 91,203
Annexure 'C' As Referred to in Note 11.7 ofUnconsolidated Financial Statements
--------------(Rupees in '000)--------------
Cost Accumulated depreciation
Book value
Sale proceeds
Mode of disposal
Particulars of Buyers