Banking Survey 2011

kpmg
cutting through complexity

KPMG Taseer Hadi & Co. Chartered Accountants
Banking Survey 2011

Commercial Banks Operating in Pakistan
BANKING & FINANCE
Banking Survey 2011

This survey has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected banks in Pakistan during the year 2011. Banking sector in Pakistan has been divided in four categories for the purpose of this survey to facilitate comparison of peer groups. Banks with total assets in excess of Rs. 400 billion are categorised as Large Banks, banks with total assets from Rs. 101 billion to Rs. 400 billion are categorised as Medium Size Banks, and banks with total assets up to Rs. 100 billion are categorised as Small Banks. Islamic Banks have been presented as a separate category and included in their respective category of Medium and Small Banks based on total assets threshold. The information contained in this survey has been obtained from the published consolidated financial statements of the banks, statistical bulletins and quarterly / annual reports published by State Bank of Pakistan (SBP), analysts and research reports and information published in business magazines and newspapers. Reference should be made to the published financial statements of the banks and definitions included in this survey to enhance the understanding of ratios and analysis of performance of a particular bank. The financial statements of Sindh Bank Limited and KASB Bank Limited were not published till 31 March 2012, and accordingly, are not included in this survey. Comparative figures for 2010 as reported in our Banking Survey 2010 have been updated due to inclusion of financial statements of Bank of Punjab, Faysal Bank Limited and Citibank, N.A which were not part of our previous survey. We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. However, we welcome any comments, which would facilitate in improving the contents of this survey. The comments may be sent on pkfmkarachi@kpmg.com Dated: 08 June 2012 Karachi
Banking Survey 2011

2012 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
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Banking Survey 2011

Contents
AT A GLANCE ...................................................................................................... 1 PROFITABILITY ................................................................................................... 9 RETURN ON AVERAGE EQUITY ...................................................................... 13 SPREAD ............................................................................................................. 15 NET INTEREST INCOME ................................................................................... 17 NON-FUNDED INCOME..................................................................................... 19 COSTS................................................................................................................ 21 ASSETS .............................................................................................................. 29 LOANS AND ADVANCES................................................................................... 33 LIQUIDITY (AVERAGE ADVANCES TO AVERAGE DEPOSITS) ...................... 39 ASSET QUALITY ................................................................................................ 43 DEPOSITS .......................................................................................................... 51 CURRENT AND SAVING DEPOSITS TO TOTAL DEPOSITS (CASA) .............. 57 EARNINGS PER SHARE (EPS) ......................................................................... 59 CREDIT RATINGS .............................................................................................. 61 NUMBER OF BRANCHES AND LEGEND ......................................................... 63 DEFINITIONS ..................................................................................................... 65
Banking Survey 2011

iii
iv
Banking Survey 2011
At a Glance
At a Glance
Large Banks Assets
Loans and advances net of provisions Rupees in million 527,109 457,368 341,140 225,795 244,440 198,469 1,994,321 Operating fixed assets & intangible assets
Bank
Cash & bank
Investments
Lendings to financial institutions
Other assets
Total assets
NBP HBL UBL MCB ABL BAF
159,913 150,750 105,727 55,480 38,159 68,308 578,337
319,527 418,604 301,107 319,006 195,790 166,649 1,720,683
44,361 41,581 9,536 955 1,362 7,765 105,560
28,127 19,168 25,722 22,418 18,095 13,428 126,958
74,443 52,085 23,972 32,671 18,043 13,728 214,942
1,153,480 1,139,556 807,204 656,325 515,889 468,347 4,740,801
Liabilities and Equity
Bank
Bills payable
Borrowings
Deposits
Subordinated Other liabilities loans
Equity
Total
Rupees in million NBP HBL UBL MCB ABL BAF 9,105 13,895 5,879 9,467 4,015 5,403 47,764 26,372 39,474 50,846 39,101 49,993 18,169 223,955 927,415 933,632 633,889 491,147 399,561 401,246 3,786,890 5,036 11,317 5,493 7,149 28,995 54,794 37,932 19,352 24,956 13,348 10,477 160,859 135,794 109,587 85,921 91,654 43,479 25,903 492,338 1,153,480 1,139,556 807,204 656,325 515,889 468,347 4,740,801
Banking Survey 2011

Income Statement
Non-markup / Provisions interest income
Bank
Spread
Profit Operating Operating income expenses before tax
Taxation
Profit after tax
47,173 56,398 40,035 44,583 25,133 18,479 231,801
9,358 6,925 7,294 3,654 3,153 4,187 34,571
19,754 14,783 12,971 8,170 7,264 5,357 68,299
Rupees in million 57,569 31,453 64,256 45,712 49,099 29,243 19,648 265,527 29,934 22,079 17,778 13,985 14,265 129,494
26,116 34,322 23,633 31,321 15,258 5,383 136,033
8,407 11,988 8,747 12,019 5,002 1,057 47,220
17,709 22,334 14,886 19,302 10,256 4,326 88,813
Banking Survey 2011
Medium Size Banks Assets

Loans and advances net of provisions Rupees in million BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit * 29,703 29,497 32,404 23,131 17,786 20,305 18,996 9,456 9,838 7,552 198,668 223,105 104,040 133,655 93,409 147,459 92,581 99,950 47,786 45,776 36,134 1,023,895 20,206 1,614 2,362 7,447 4,065 14,667 813 1,070 52,244 114,863 137,309 150,713 148,162 109,657 127,130 58,956 60,862 65,340 57,313 1,030,305 10,791 32,850 9,451 10,850 3,231 3,597 4,021 6,509 3,834 5,951 91,085 6,063 40,286 16,029 17,016 7,706 29,938 15,748 15,545 4,131 11,653 164,115 384,525 364,188 343,866 292,568 288,201 280,998 201,736 154,825 129,732 119,673 2,560,312 Operating fixed assets & intangible assets
Bank
Cash & bank
Investments
Other assets
Total assets
Bank
Bills payable
Borrowings
Deposits
Equity
Total
BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit *
4,980 4,577 2,756 3,076 3,734 851 2,282 1,738 1,571 901 26,466
43,442 19,362 17,275 39,697 66,641 24,964 9,236 47,382 14,557 18,563 301,119
302,097 235,875 291,499 214,615 185,281 237,897 170,022 85,472 99,734 89,615 1,912,107
Rupees in million 7,390 699 6,990 4,395 3,994 898 1,500 25,866
6,605 48,016 7,464 11,572 7,964 6,513 5,359 2,574 1,995 2,938 101,000
20,011 55,659 17,882 19,213 24,581 10,773 14,837 13,665 10,977 6,156 193,754
384,525 364,188 343,866 292,568 288,201 280,998 201,736 154,825 129,732 119,673 2,560,312
Banking Survey 2011

Income Statement
Non-markup / interest income
Bank
Spread
Provisions / (reversals)
Operating Operating income expenses
Profit / (loss) before tax
Taxation
Profit / (loss) after tax
BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit *
14,156 20,917 10,070 9,206 7,727 (388) 9,341 2,095 3,898 508 77,530
1,821 4,507 1,771 695 2,755 (2,633) 1,674 2,550 1,272 368 14,780
2,608 6,193 3,031 4,070 5,199 1,990 2,785 2,028 1,955 778 30,637
Rupees in million 14,943 7,784 22,602 11,329 12,581 10,172 4,234 10,453 1,573 4,581 918 93,386 14,016 8,874 11,103 5,527 3,711 6,332 5,065 3,503 3,903 69,818
7,159 8,586 2,455 1,478 4,645 523 4,121 (3,492) 1,078 (2,985) 23,568
2,622 3,033 750 198 1,356 175 1,075 (1,425) 295 (1,474) 6,605
4,537 5,553 1,705 1,280 3,289 348 3,046 (2,067) 783 (1,511) 16,963
* Summit Bank Limited merger with MyBank Limited (the MBL) was effective from 1 April 2011.
Banking Survey 2011
Small Banks Assets

Loans and advances net of provisions Rupees in million Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB 8,140 4,530 11,522 4,331 11,267 5,234 6,376 4,046 4,547 1,522 3,596 4,629 1,536 5,408 3,344 3,742 83,770 60,399 17,548 26,179 36,685 22,120 20,892 23,791 22,907 12,937 9,664 9,983 5,587 4,730 1,484 274,906 1,339 3,101 1,801 3,869 4,436 4,038 3,803 3,826 803 7,640 1,606 655 783 30 37,730 18,820 49,936 27,611 22,288 20,794 20,110 20,998 18,030 23,341 15,831 10,509 2,987 7,701 2,215 26 571 261,768 635 4,756 2,798 1,302 186 1,817 803 3,065 1,598 904 672 199 229 29 294 31 19,318 7,569 10,799 4,434 2,018 1,120 6,227 2,018 2,652 1,948 2,606 2,885 1,199 326 90 21 29 45,941 96,902 90,670 72,544 68,425 59,356 58,716 58,024 54,503 48,197 31,330 27,645 22,241 16,128 8,397 5,952 4,403 723,433 Operating fixed assets & intangible assets
Bank
Cash & bank
Investments
Other assets
Total assets
Bank
Bills payable
Borrowings
Deposits
Equity
Total
Rupees in million Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB 2,029 1,679 451 281 1,024 799 573 1,247 394 529 211 239 96 87 22 12 9,673 11,231 17,782 1,736 10,392 2,686 800 4,437 3,172 1,899 3,996 447 1,523 51 1,076 511 61,739 61,679 64,072 61,559 45,548 46,171 50,469 44,665 40,174 38,492 17,669 20,341 11,119 13,815 1,992 1,524 721 520,010 11,197 1,498 2,274 1,839 1,969 1,341 1,425 1,129 1,178 954 841 3,324 446 87 1,396 27 30,925 10,766 5,639 6,524 10,365 7,506 5,307 6,924 8,781 6,234 8,182 5,805 6,036 1,720 5,155 3,010 3,132 101,086 96,902 90,670 72,544 68,425 59,356 58,716 58,024 54,503 48,197 31,330 27,645 22,241 16,128 8,397 5,952 4,403 723,433
Banking Survey 2011

Income Statement
Bank
Spread
Taxation
Rupees in million Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB 5,700 1,871 1,698 2,395 2,916 2,632 2,009 1,736 2,237 1,408 952 1,123 742 101 10 (15) 27,515 (1,224) 1,172 (2,630) (227) 245 103 23 51 (151) 10 (46) 252 (21) (5) 2,049 847 482 730 1,141 227 518 770 457 152 189 725 254 103 1 15 8,660 6,577 5,347 2,407 2,880 3,954 2,836 2,476 2,657 2,684 1,607 889 1,870 1,002 204 10 37,400 4,053 3,988 1,926 1,595 2,443 2,221 2,062 2,119 2,368 1,406 1,236 766 601 142 195 69 27,190 2,524 1,359 481 1,285 1,511 615 414 538 316 201 (347) 1,104 401 62 (185) (69) 10,210 3,646 768 664 70 413 540 209 208 176 126 (36) (58) 396 142 28 1,756 695 411 872 971 406 206 362 190 237 (289) 708 259 34 (185) (69) 6,564
Banking Survey 2011
Islamic Banks Assets

Loans and advances net of provisions Rupees in million Meezan Albaraka Islami DIB Burj 18,996 11,522 5,234 4,547 3,596 43,895 99,950 26,179 20,892 12,937 9,983 169,941 4,065 4,436 3,826 12,327 58,956 27,611 20,110 23,341 10,509 140,527 4,021 2,798 1,817 1,598 672 10,906 15,748 4,434 6,227 1,948 2,885 31,242 201,736 72,544 58,716 48,197 27,645 408,838 Operating fixed assets & intangible assets
Bank
Cash & bank
Investments
Other assets
Total assets
Bank
Bills payable
Borrowings
Deposits
Equity
Total
Rupees in million Meezan Albaraka Islami DIB Burj 2,282 451 799 394 211 4,137 9,236 1,736 800 1,899 447 14,118 170,022 61,559 50,469 38,492 20,341 340,883 5,359 2,274 1,341 1,178 841 10,993 14,837 6,524 5,307 6,234 5,805 38,707 201,736 72,544 58,716 48,197 27,645 408,838
Income Statement
Bank
Spread
Taxation
Meezan Albaraka Islami DIB Burj
9,341 1,698 2,632 2,237 952 16,860
1,674 (227) 23 10 252 1,732
2,785 482 227 457 189 4,140
Rupees in million 10,453 6,332 2,407 2,836 2,684 889 19,269 1,926 2,221 2,368 1,236 14,083
4,121 481 615 316 (347) 5,186
1,075 70 209 126 (58) 1,422
3,046 411 406 190 (289) 3,764
Banking Survey 2011

Banking Survey 2011
Profitability
PROFITABILITY The profit before tax of banks included in this survey has increased by 59.1% to Rs. 169.8 billion in 2011 from Rs. 106.7 billion in 2010. The main contributors to the increase were HBL with Rs. 7.3 billion, UBL with Rs. 5.9 billion, MCB with Rs. 4.8 billion. NIB and BOP losses also decreased by Rs. 8.6 billion and Rs. 6.7 billion respectively. The increase in profitability was mainly due to: Rupees in billions 56.33 13.50 23.73 (30.98)
Increase in spread Increase in non mark-up / interest income Decrease in provisions / write off (Increase) in operating expenses
During the year, prudential regulations issued by SBP extended the benefit of forced sale value against mortgage of residential and commercial properties. The SBP also allowed benefit against mortgage of industrial properties and plant and machinery under charge. This resulted in increased benefit taken by banks. The impact of FSV benefit taken on profit for 2011 for banks included in the survey is estimated at about Rs. 28 billion compared to about Rs. 11 billion in 2010. The estimate for certain banks has been made based on change in cumulative benefit as those banks have not disclosed the impact of FSV benefit on profit for the year separately. Furthermore, there was an increase in trend of banks acquiring nonbanking assets in settlement of debts.
Banking Survey 2011

Large Banks HBL and UBL posted highest profit growth of 26.9% and 33.6%, respectively, from 2010. HBLs spread and non mark-up/interest income have increased by Rs. 9.4 billion and Rs. 2 billion, while operating expenses increased by Rs. 4.8 billion. UBLs spread and non mark-up / interest income have increased by Rs. 5.2 billion and Rs. 2.1 billion and operating expenses increased by Rs. 2.2 billion. NBPs profit growth includes FSV benefit of Rs. 5.7 billion in 2011 compared to Rs. 820 million in 2010.
27,040 34,322
26,480 31,321
Operating income less operating cost (i.e. profit before tax).
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 -00
24,622 26,116
17,689 23,633
Rupees in millions
12,415 15,258
2,065 5,383
NBP
Medium Size Banks
HBL 2011
UBL MCB 2010
ABL
BAF
BAH and SCB posted highest profit growth of 25.1% and 49.1%, respectively, from 2010. BAHs spread and non mark-up/interest income have increased by Rs. 3.3 billion and Rs. 0.4 billion, provisions and operating expenses have increased by Rs. 0.9 billion and 1.5 billion. SCBs spread has increased by Rs. 3.4 billion. The loss before tax of NIB amounted to Rs. 3.5 billion as compared to loss of Rs. 12.1 billion in 2010, and BOP reported profit before tax of Rs. 0.5 billion as compared to loss of Rs. 6.2 billion in 2010. This was mainly because of decrease in provisions of NIB and BOP by Rs. 7.5 billion and Rs. 5.95 billion respectively. NIBs reduced losses included FSV benefit of Rs. 3.8 billion in 2011 compared to Rs. 1 billion in 2010.
5,758 8,586 5,724 7,159
4,028 4,645
10,000
2,369 4,121
1,250 2,455
827 1,478
140 Soneri 1,078
Rupees in millions
5,000 -00 (5,000) (10,000) (15,000)
523
BOP
(3,890) Summit (2,985)
Askari
Faysal
BAH
SCB
2011
HMB
Meezan
NIB (3,492) (12,089)
(6,186)
2010
10
Banking Survey 2011
Small Banks Profit before tax of small banks included in this survey has increased to Rs. 10.2 billion as compared with loss before tax of Rs. 1.5 billion in 2010. Silks profit included FSV benefit of Rs. 2.7 billion in 2011 compared to Rs. 1 billion in 2010. Its non-banking assets acquired in satisfaction of claims also increased by Rs. 3.2 billion in 2011.
2,524 1,511
3,000 2,500

Rupees in millions
1,359 1,197
1,285
1,284 1,104
2,000 1,500 1,000 500 -00 (500) (1,000) (1,500) (2,000)
615 758
713
538
481
414 42 Barclays
55 401
18 316
-00
70 62
201 DB (825) Burj (347) (130) SAMBA
Islamic Banks Profit before tax for Islamic banks increased from Rs. 32 million to Rs. 5,186 million with major contributor being Meezan Bank Limited.
4,121
4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 -00 (500) (1,000) (1,500) (2,000)
Citibank
Albaraka (1,572)
FWB
Silk (1,236)
BOK
JS
Islami
DIB
HSBC
(37) OIB (69)
BOT
ICBC (185)
(623)
2011
(1,225)
2010
2,369
Rupees in millions
615
481
316
42
18
Meezan
Albaraka
Islami
DIB
Burj
(347)
(825)
(1,572)
2011
2010
Banking Survey 2011
11
12
Banking Survey 2011
Return on Average Equity

RETURN ON AVERAGE EQUITY The return on average equity (ROAE), profit before tax as a percentage of average equity, of banks included in the survey has increased to 22.9% in 2011 as compared to 15.9% in 2010. Large Banks ROAE of Large Banks has increased by 2.8% to 29.1% in 2011.
In percentages
70.0 60.0
37.7 38.4
50.0
Profit before tax as a percentage of average equity
34.3 36.1
29.9 33.3
24.8 29.3
40.0
19.5 19.6
22.6
30.0 20.0 10.0 0.0
9.5
NBP
HBL 2011
UBL
MCB 2010
ABL
BAF
Medium Size Banks ROAE of Medium Size Banks has increased to 13.2% from negative of 1.2% in 2010. This is mainly due to decrease in losses of NIB and BOP.
In percentages
37.8 39.5 20.9 30.2 1.7 10.8 20.6 20.7
70.0
11.4 15.9
8.1 14.5
5.6 8.3
7.2
20.0
-80.0 Summit -63.3
Askari
Faysal
BAH
SCB
HMB
Soneri
BOP
Meezan
NIB -43.8 -25.4
(30.0) (80.0) (130.0) (180.0)
-125.7
2011
2010
Small Banks
Banking Survey 2011
13
ROAE of Small Banks has increased to 11% from negative 1.9% in 2010.
In percentages 70.0 50.0

26.0 13.8 25.7 6.2 0.9 12.2 12.9 22.1 9.3 13.0
28.4 24.6 19.5
30.0 10.0
7.4
7.6
0.3 5.1
1.6 1.3 5.0
2.5 SAMBA -1.7
0.0
-10.8 JS -18.4 Barclays
DB
Citibank
Albaraka -32.7
FWB
Silk
-18.0 Burj -6.9
BOK
Islami
DIB
HSBC
-1.3 OIB -2.3
BOT
ICBC-12.3
(10.0) (30.0) (50.0)
Islamic Banks Islamic Banks ROAE was 14.3% compared to 0.1% for the year ended 31 December 2010.
-37.5
2011
2010
In percentages
70.0 50.0
30.2
20.9
30.0 10.0
12.2
0.3
7.6 Albaraka
5.1
0.9 Islami
DIB
-18.0 Burj -6.9
Meezan
(10.0) (30.0) (50.0)
-32.7
2011
2010
14
Banking Survey 2011
Spread
Spread The overall spread of the industry for last five years as disclosed in SBP Statistical Bulletin was as follows:
2011
Weighted average lending rate Weighted average deposit rate Banking spread *13.46
2010
13.52
2009 In percentage
13.49
2008
14.45
2007
11.11
*5.88
5.91
6.14
6.70
4.97
7.58
7.61
7.35
7.75
6.14
* As at December 2011
(Source: SBP Statistical Bulletin)
The average spread of banks included in this survey was 7.0% (2010: 6.9%). Large Banks Average spread of large banks in 2011 was 7.9% compared to 7.7% in 2010.
Difference between markup/return/ interest earned on loans and advances as a percentage of average loans and
In percentages
9.7
8.9
8.0
8.0
7.9
7.8
7.7
7.6
7.6
7.5
7.3
advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends
NBP
6.9
HBL
UBL 2011
MCB 2010
ABL
BAF
Banking Survey 2011
15
Medium Size Banks Average spread of medium size banks in 2011 was 5.6% compared to 5.3% in 2010.
In percentages
11.2
Difference between markup/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends
9.1 7.4 5.1 6.9 7.2 6.1 5.4 4.8 4.7 4.6
4.5
Small Banks Average spread of small banks remained at 6.4% as compared to 2010.
4.4
4.2
4.0
3.5 4.0 1.9 1.2
3.9
BAH
SCB
Askari
Faysal
HMB
2011
BOP
Meezan
2010
NIB
Soneri
Summit
In percentages
Difference between markup/return/ interest earned on loans and advances as a

7.1 5.9 7.0 7.0 6.8 6.0 2.1 3.5 5.0 6.2
15.2 11.5 7.6 7.7 4.7 7.4 6.2 7.2 4.8 4.9 7.0
10.2
8.5 8.0
percentage of average loans and advances at two year ends and mark-up/return/ interest expense
5.9
4.4 4.9
4.5
2.8 0.5
0.0
Citibank
Albaraka
SAMBA
Silk
Barclays
BOK
JS
Islami
DIB
HSBC
DB
OIB
BOT
FWB
ICBC -5.8
Burj
of deposits as a percentage of average deposits at two year ends
2011
2010
Islamic Banks Average spread of Islamic banks in 2011 was 7.3% compared to 6.9% in 2010.
Difference between markup/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends
In percentages
15.2 7.7 7.6
11.5
Meezan
7.2
7.0
6.9
4.9
Albaraka 2011
3.5
2.1
Islami 2010 DIB
Burj
16
Banking Survey 2011
Net Interest Income Ratio

Net Interest Income Large Banks Average net interest income of large banks in 2011 was 4.4% compared with 4.2% 2010.
In percentages
6.3
5.9
Mark-up/return/interest earned (before provisions) as a percentage of interest bearing assets less mark-up / return/interest expensed as a percentage of interest bearing liabilities
4.7
4.5
4.5
4.5
4.3
4.2
Medium Size Banks

Average net interest income of medium size banks in 2011 was 2.5% compared to 2.3% in 2010.
In percentages
3.7
NBP
3.6
HBL
4.4 5.2
2.6
1.9
UBL 2011
MCB 2010
ABL
BAF
5.3
Mark-up/return/interest earned (before provisions) as a

2.6 2.6
3.0
2.7 2.6
2.7
2.3 2.4
percentage of interest bearing assets less mark-up / return/interest expensed as a percentage of interest bearing
2.1
2.0 1.5 0.2
2.0
1.9 1.1
0.9 Summit
Askari
Faysal
BAH
SCB
HMB
Soneri
BOP -0.2
Meezan
NIB
liabilities
2011
2010
Banking Survey 2011

17
Small Banks Average net interest income of small banks in 2011 was 3.3% compared to 2.4% in 2010.
In percentages
5.2
4.6 5.2
4.5
4.4
Mark-up/return/interest earned
3.6
4.1
3.9
(before provisions) as a percentage of interest bearing assets less mark-up / return/interest expensed as a
0.9 2.6 2.6 2.0 2.2
3.3
3.2
3.1
3.0 3.0
3.0
3.0
2.8
2.1 2.1
2.1
1.4 1.8
1.8 1.5
1.8
percentage of interest bearing liabilities

Citibank Silk
Islamic Banks Average net interest income of Islamic banks in 2011 was 4.5% compared to 2.4% in 2010.
0.3 SAMBA Barclays DB Albaraka FWB Burj BOK JS Islami DIB HSBC BOT
2011 2010
0.0 OIB ICBC -0.6
In percentages
5.3 5.2 4.4
Mark-up/return/interest earned (before provisions) as a percentage of interest bearing assets less mark-up / return/interest expensed as a percentage of interest bearing liabilities
3.3
3.2
3.0
Meezan
2.7
Albaraka 2011
2.2 0.3
2.1
Islami 2010
DIB
Burj
18
Banking Survey 2011
Non-Funded Income
NON-FUNDED INCOME Non-funded income as a percentage of net interest income, of banks included in this survey, has decreased to 26.2% in 2011 from 27.9% in 2010. Large Banks income declined from 24.9% in 2010 to 24.3% in 2011; whereas the ratio of Medium Size Banks decreased to 32.1% from 34.8%. In case of Small Banks, it decreased to 25.2% in 2011 from 37.2% in 2010 and in case of Islamic Banks it decreased to 19.7% in 2011 from 30.6% in 2010.
Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other
Non-funded income to net interest income Large Banks

In percentages
33.3
32.9
32.7
non-fund receipts Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed
31.1
29.6
27.4
24.2
22.6
15.1
14.8
14.7
14.7
NBP
HBL
UBL
2011 2010
MCB
ABL
BAF
Medium Size Banks

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other
75.1
In percentages
143.9
non-fund receipts
52.0 47.4 41.1 40.9 39.2
49.0
34.6 39.2
Net interest income means mark17.1
32.1
30.0
25.9
25.1
24.0
23.8
up/return/interest earned (before provisions) less markup/return/interest expensed
BOP has been excluded from above chart since it reported negative net interest income.
16.7
BAH
SCB
Askari
Faysal
2011
HMB
Meezan
2010
NIB
Soneri
Summit
Banking Survey 2011
19
Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.
Small Banks
In percentages
150.1 144.5 43.9 39.0 42.8 27.3 38.8 33.7 28.2 21.0 14.8 11.7 8.6
79.6 102.0
65.4
25.0 27.2
26.8 9.2
22.3 25.5
18.7 14.5
10.0
11.5 7.8
Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
6.5 8.2
OIB has been excluded from above chart since it reported negative net interest income.
Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.
Islamic Banks
Citibank
Albaraka
SAMBA
Silk
Barclays
BOK
JS
Islami
2011
DIB
HSBC
DB
BOT
FWB
ICBC
Burj
2010
In percentages
42.8
41.1 27.3 23.8
18.7
14.5
11.7
11.5
8.6
7.8
Meezan
Albaraka
2011
Islami
2010
DIB
Burj
20
Banking Survey 2011
Costs
COSTS
Operating Cost to Net Interest Income ratio Operating cost to net interest income ratio of the banks included in the survey has decreased from 69.7% in 2010 to 67.2% in 2011. Large Banks Operating costs of Large Banks increased by 17.3% while net interest income increased by 16.9%.
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
Operating cost Net interest income 2011 2010 2011 2010 Rupees in millions 31,453 27,123 47,173 43,511 29,934 25,132 56,398 46,995 22,079 19,861 40,035 34,838 17,778 13,406 44,583 36,802 13,985 12,003 25,133 22,545 14,265 12,836 18,479 13,675 129,494 110,361 231,801 198,367
Operating Cost to Net Interest Income

In percentages
93.9
77.2
66.7
62.3
57.0
55.6
55.1
53.5
53.2
53.1
Large Banks operating cost to net interest income ratio increased to 55.9% from 55.6% in 2010.
39.9
36.4
NBP
HBL
UBL
2011
MCB
2010
ABL
BAF
Banking Survey 2011

21
Medium Size Banks Operating costs of Medium Size Banks increased by 15.9% while net interest income increased by 23.2%.
Operating cost Net interest income 2011 2010 2011 2010 Rupees in millions 7,784 6,331 14,156 10,815 14,016 13,590 20,917 17,554 8,874 8,010 10,070 9,400 11,103 6,775 9,206 5,791 5,527 4,335 7,727 6,974 3,711 6,331 5,065 3,503 3,903 69,817 4,168 4,724 7,337 2,682 3,251 61,203 (388) 9,341 2,095 3,898 508 77,530 (582) 5,679 3,015 3,046 968 62,660
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.
BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit

In percentages
768.3 335.9
243.4 241.8
Medium Size Banks operating

117.0 120.6
cost to net interest income ratio

77.4 67.0 58.5 55.0
88.0 89.9
85.2 88.1
83.2 67.8
62.2 71.5
has improved to 84.8% from 90.2% in 2010.
BAH
SCB
Askari
Faysal
HMB
Meezan
NIB
Soneri
Summit
2011
2010
BOP has been excluded from above chart since it reported negative net interest income.
22
Banking Survey 2011
Small Banks Operating costs of Small Banks decreased by 13.1% while net interest income increased by 41.1%.
Operating cost Net interest income 2011 2010 2011 2010 Rupees in millions 4,053 4,047 5,700 5,133 3,988 3,041 1,871 849 1,926 1,595 1,698 540 1,595 951 2,395 1,282 2,443 2,176 2,916 2,292 2,221 1,921 2,632 1,761 2,062 2,486 2,009 1,635 2,119 1,864 1,736 1,045 2,368 2,109 2,237 1,942 1,406 1,468 1,408 1,034 1,236 1,020 952 537 766 653 1,123 741 601 536 742 611 142 115 101 103 195 10 69 59 (15) (13) 27,190 24,041 27,515 19,493
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.
Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB

In percentages
1,950.0
Small Banks operating cost to net interest income ratio improved to 98.5% from 123 % in 2010.
OIB has been excluded from above chart since it reported negative net interest income.
74.2 66.6 295.3 113.4 358.2 213.1 78.8 71.1 Citibank Albaraka Silk BOK
141.9 99.9 108.6 105.9 178.4 122.1 152.0 102.6 109.1 84.4 94.9 83.8 SAMBA Barclays JS Islami DIB HSBC
88.1 68.2 189.9 129.8 DB Burj
111.6 140.6 87.8 81.0 BOT FWB ICBC
2011
2010
Banking Survey 2011
23
Islamic Banks Operating costs of Islamic Banks increased by 23.9% while net interest income increased by 61.2%. Their operating cost to net interest income ratio was 83.5% (2010: 108.7%)
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
Operating cost Net interest income 2011 2010 2011 2010 Rupees in millions 6,331 4,724 9,341 5,679 1,926 1,595 1,698 540 2,221 1,921 2,632 1,761 2,368 2,109 2,237 1,942 1,236 1,020 952 537 14,082 11,369 16,860 10,459
In percentages
295.3
189.9
129.8
Islamic Banks operating cost to net interest income ratio decreased to 83.5% from 108.7% in 2010.
113.4
109.1
108.6
105.9
84.4
83.2
Meezan
67.8
Albaraka 2011
Islami 2010
DIB
Burj
24
Banking Survey 2011
Staff cost Staff costs remain one of the most significant costs for the banks, averaging approximately 48.5% (2010: 48.1%) of total operating expenses. Large Banks
Staff cost includes salaries, allowances, etc., staff retirement benefits.
NBP HBL UBL MCB ABL BAF Staff cost 2011 2010 Rupees in millions 21,547 18,517 16,922 13,761 9,377 8,192 6,850 4,633 7,633 6,710 6,310 5,554 68,639 57,367 Number of staff 2011 2010 Numb ers 16,924 16,524 13,661 13,269 12,563 11,847 13,355 13,714 13,029 12,633 10,123 10,009 79,655 77,996 Cost per staff 2011 2010 Rupees in thousand 1,273 1,121 1,239 1,037 746 691 513 338 586 531 623 555
Medium Size Banks

BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit Staff cost 2011 2010 Rupees in millions 3,439 4,713 4,535 5,141 2,415 2,069 2,932 2,232 1,317 1,497 30,290 2,809 4,539 4,259 3,076 2,031 1,854 2,130 3,916 959 1,311 26,884 Number of staff 2011 2010 Numb ers 6,051 4,990 7,372 6,442 3,092 4,674 4,900 2,718 2,494 1,705 44,438 5,275 4,920 7,766 5,868 2,947 4,464 4,364 3,642 2,559 1,383 43,188 Cost per staff 2011 2010 Rupees in thousand 568 944 615 798 781 443 598 821 528 878 533 923 548 524 689 415 488 1,075 375 948
Small Banks
Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB Staff cost 2011 2010 Rupees in millions 1,165 1,177 1,908 1,661 761 598 543 543 888 927 843 650 988 1,073 833 699 918 904 687 646 388 317 396 308 335 313 63 53 130 21 21 10,867 9,890 Number of staff 2011 2010 Numb ers 1,016 1,353 2,564 2,179 1,238 1,322 1,384 1,198 548 714 1,452 1,351 576 692 1,619 1,255 1,400 990 760 810 820 583 113 108 630 585 42 42 28 25 27 14,215 13,209 Cost per staff 2011 2010 Rupees in thousand 1,147 870 744 762 615 452 392 453 1,620 1,298 581 481 1,715 1,551 515 557 656 913 904 798 473 544 3,504 2,852 532 535 1,500 1,262 4,643 840 778
Banking Survey 2011

25
Islamic Banks
Meezan Albaraka Islami DIB Burj Staff cost 2011 2010 Rupees in millions 2,932 2,130 761 598 843 650 918 904 388 317 5,842 4,599 Number of staff 2011 2010 Numb ers 4,900 4,364 1,238 1,322 1,452 1,351 1,400 990 820 583 9,810 8,610 Cost per staff 2011 2010 Rupees in thousand 598 488 615 452 581 481 656 913 473 544
26
Banking Survey 2011
Remuneration of Executives Large Banks

Remuneration of executives
NBP HBL * UBL * MCB ABL BAF Remuneration of Executives Number of Executives CEO Remuneration 2011 2010 2011 2010 2011 2010 Rupees in thousands Numb ers 77,527 69,645 3,316,968 2,003,914 1,232 796 25,766 22,994 4,196,926 3,263,089 2,187 1,576 84,000 73,553 5,178,362 4,365,676 1,485 1,360 42,914 57,434 2,421,803 2,653,782 906 734 57,139 94,531 2,644,698 1,901,283 1,114 845 137,611 29,505 2,824,106 1,939,201 993 869 424,957 347,662 20,582,863 16,126,945 7,917 6,180
Medium Size Banks

BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit Remuneration of Executives Number of Executives CEO Remuneration 2011 2010 2011 2010 2011 2010 Rupees in thousands Numb ers 22,564 18,859 1,448,801 1,122,651 639 521 106,486 277,516 2,855,264 2,373,327 915 822 25,248 22,391 1,114,153 1,180,666 542 575 188,311 133,837 2,310,629 1,412,345 770 789 52,450 52,450 1,346,885 1,058,892 689 565 22,178 20,178 366,367 322,812 217 206 93,387 72,519 764,351 538,960 294 228 67,568 39,094 1,012,406 1,220,836 526 712 38,025 106,933 286,399 167,275 194 94 19,819 33,508 515,751 655,176 286 321 636,036 777,285 12,021,006 10,052,940 5,072 4,833
Small Banks
Citibank Silk Albaraka BOK HSBC Islami Barclays * JS DIB SAMBA Burj DB * FWB BOT ICBC OIB CEO Remuneration Remuneration of Executives Number of Executives 2011 2010 2011 2010 2011 2010 Numb ers Rupees in thousands 48,131 44,952 803,826 820,153 296 313 58,579 52,771 1,059,638 901,615 341 295 27,064 57,575 365,477 259,327 214 261 8,402 6,945 133,819 103,032 52 45 55,567 74,815 331,641 447,874 123 142 20,009 13,800 198,388 157,352 106 100 40,374 29,292 494,382 497,391 194 184 18,866 14,788 455,929 357,554 221 190 16,697 50,400 382,863 463,755 170 172 31,945 30,372 351,969 319,592 141 158 27,487 25,668 203,789 117,357 140 81 28,419 13,769 170,814 156,667 62 49 12,911 12,137 95,632 68,141 55 41 8,632 10,950 24,224 19,987 7 5 15,001 0 83,692 0 18 0 1,278 1,620 2,436 3,172 2 3 419,362 439,854 5,158,519 4,692,969 2,142 2,039
Islamic Banks
Meezan Albaraka Islami DIB Burj CEO Remuneration Remuneration of Executives Number of Executives 2011 2010 2011 2010 2011 2010 Rupees in thousands Numb ers 93,387 72,519 764,351 538,960 294 228 27,064 57,575 365,477 259,327 214 261 20,009 13,800 198,388 157,352 106 100 16,697 50,400 382,863 463,755 170 172 27,487 25,668 203,789 117,357 140 81 184,644 219,962 1,914,868 1,536,751 924 842
* Certain benefits of Chief Executive Officer have been disclosed in aggregate

along with benefits of executives by these banks.
Banking Survey 2011

27
28
Banking Survey 2011
Assets
ASSETS During the year total assets of banks under review have increased by 15.3%. The growth in Large, Medium, and Small Banks was 15%, 14.5% and 20.1%, respectively.
Total Assets
8,024.5 6,959.6
Rupees in billion
9,000.0 8,000.0
4,740.8
7,000.0 6,000.0 5,000.0 4,000.0 3,000.0 2,000.0 1,000.0 -00
Large Size Medium Size Bank Banks

2011
* Islamic Banks also included in categories according to size of the banks.
4,121.4
2,560.3
2,235.6
Small Size Banks

2010
723.4
602.5
Islamic Banks*
408.8
322.1
Total*
Large Banks
Total Assets
1,038.0 1,153.5
924.7 1,139.6
1,400.0
Rupees in billion
1,200.0 1,000.0 800.0 600.0 400.0 200.0 -00
726.4 807.2
570.5 656.3
450.0 515.9
411.8 468.3
NBP
HBL
2011
UBL
2010
MCB
ABL
BAF
Banking Survey 2011
29
Medium Size Banks

Total Assets
384.5 301.8
450.0 400.0
Rupees in billion
327.3 364.2
314.8 343.9
267.3 292.6
252.1 288.2
229.2 281.0
350.0 300.0 250.0 200.0 150.0 100.0 50.0 -00
158.8 201.7
164.6 154.8
108.1 129.7 Soneri
111.7 119.7
Faysal
Askari
NIB
HMB
* 2010 includes figures of Mybank.
Small Banks
Total Assets 120.0 100.0
BAH
90.7 97.4 96.9
SCB
Meezan
BOP
Summit *
2011
2010
4.2 4.4 -00 6.0 9.0 8.4 12.7 16.1 17.4 22.2 17.7 27.6 30.5 31.3 39.9 48.2 39.4 54.5 48.3 58.0 44.9 58.7 56.9 59.4 50.8 68.4 60.8 72.5 72.6
Rupees in billion
80.0 60.0 40.0 20.0 -00
Citibank
Barclays
Islami
Albaraka
Burj
Silk
ICBC
HSBC
FWB
DIB
BOT
OIB
JS
BOK
DB
SAMBA
2011
2010
30
Banking Survey 2011
Islamic Banks
Total Assets
201.7
250.0 200.0
158.8
Rupees in billion
150.0
72.5
60.8
100.0 50.0 -00 Meezan
58.7
48.2
44.9
39.9
27.6
17.7
Albaraka
2011
Islami
2010
DIB
Burj
Banking Survey 2011

31
32
Banking Survey 2011
Loans and Advances

LOANS AND ADVANCES Total loans and advances of banks under review have increased by 0.6% (2010: 6.2%) to Rs. 3,286.4 billion at 31 December 2011 (2010: Rs. 3,266.8 billion). 2011 -0.03% -0.9% 12.5% 11.6% 2010 1.2% 13.6% 13.9% 23.8%
Large Banks Medium Size Banks Small Banks Islamic Banks Growth in Loans and Advances Large Banks
Annual increase 2010-11 2009-10 In percentages 10.1 0.7 (0.5) 1.1 (0.1) (5.7) (11.3) 0.5 (3.4) 6.6 (4.2) 10.2 (0.0) 1.2
Advances 2010 2009 Rupees in millions 527,109 478,887 475,338 457,368 459,750 454,662 341,140 341,510 362,080 225,795 254,565 253,248 244,440 253,103 237,383 198,469 207,152 188,021 1,994,321 1,994,967 1,970,732 2011
Annualised Increase (2011 09)
In percentages BAF ABL (5.6) (2.9) MCB UBL HBL NBP 0.3 5.3 1.5 2.7
Banking Survey 2011

33
Medium Size Banks

Annual increase 2010-11 2009-10 In percentages BAH (8.7) 18.7 SCB (5.1) 11.8 Askari (1.4) 13.1 Faysal 10.8 46.4 HMB (8.5) 17.1 BOP 5.2 (0.4) Meezan 9.2 29.5 NIB (18.4) (11.2) Soneri 19.5 12.2 Summit * (1.9) 5.9 (0.9) 13.6
* 2010 and 2009 includes figures of Mybank.
2011
Advances 2010 2009 Rupees in millions 114,863 125,773 105,985 137,309 144,722 129,460 150,713 152,784 135,040 148,162 133,707 91,346 109,657 119,828 102,293 127,130 120,818 121,316 58,956 53,995 41,710 60,862 74,584 84,021 65,340 54,676 48,727 57,313 58,417 55,153 1,039,304 915,051
1,030,305

In percentages
Summit * Soneri (14.9) NIB Meezan BOP HMB Faysal Askari SCB BAH
1.9 15.8
18.9 2.4 3.5 27.4 5.6 3.0 4.1
34
Banking Survey 2011
Small Banks
Annual increase 2010-11 2009-10 In percentages (2.2) (31.9) 12.6 38.2 2.7 11.2 22.2 54.1 (6.5) (4.3) 20.6 59.4 20.4 (3.3) 29.0 19.6 2.5 10.6 30.4 24.8 87.1 17.9 (8.0) (6.1) 22.1 92.7 (25.7) 35.6 -00 -00 19.5 23.5 12.5 13.9 Advances 2010 2009 Rupees in millions 18,820 19,244 28,245 49,936 44,354 32,097 27,611 26,897 24,194 22,288 18,238 11,836 20,794 22,242 23,248 20,110 16,670 10,457 20,998 17,437 18,034 18,030 13,978 11,690 23,341 22,765 20,590 15,831 12,138 9,723 10,509 5,616 4,764 2,987 3,246 3,457 7,701 6,308 3,274 2,215 2,981 2,199 26 -00 -00 571 478 387 261,768 232,592 204,195
2011

In percentages OIB ICBC BOT FWB (7.0) DB Burj SAMBA DIB JS Barclays Islami (5.4) HSBC BOK Albaraka Silk (18.4) Citibank 6.8 24.7 37.2 7.9 38.7 6.5 24.2 27.6 48.5 -00 0.4 53.4 21.5
Banking Survey 2011
35
Islamic Banks
Annual increase 2010-11 2009-10 In percentages 9.2 29.5 2.7 11.2 20.6 59.4 2.5 10.6 87.1 17.9 11.6 23.8 Advances 2010 2009 Rupees in millions 58,956 53,995 41,710 27,611 26,897 24,194 20,110 16,670 10,457 23,341 22,765 20,590 10,509 5,616 4,764 125,943 101,715
2011
140,527

In percentages Burj DIB Islami Albaraka Meezan 6.8 18.9 6.5 38.7 48.5
36
Banking Survey 2011
Market Share of Loans and Advances
NBP HBL UBL MCB ABL BAF BAH SCB Askari Faysal HMB BOP Less than 3%
2011 2010 In percentages 16 15 14 14 10 10 7 8 7 8 6 6 3 4 4 4 5 5 5 4 3 4 4 4 15 100 15 100
2011 2010 Rupees in millions 527,109 478,887 457,368 459,750 341,140 341,510 225,795 254,565 244,440 253,103 198,469 207,152 114,863 125,773 137,309 144,722 150,713 152,784 148,162 133,707 109,657 119,828 127,130 120,818 504,239 3,286,392 474,265 3,266,864
Less than 3% 15% BOP 4% HMB 3% Faysal 5%
NBP 16%
HBL 14%
Askari 5% SCB 4% BAH 4% BAF 6% MCB 7%
UBL 10%
ABL 7%
Banking Survey 2011
37
Banks with less than 3% market share

2011 2010 In percentages 1.79 1.65 1.85 2.28 1.99 1.67 1.74 1.79 0.57 0.59 1.52 1.36 0.84 0.82 0.68 0.56 0.63 0.68 0.61 0.51 0.64 0.53 0.55 0.43 0.71 0.70 0.48 0.37 0.32 0.17 0.09 0.10 0.23 0.19 0.07 0.09 0.00 0.09 0.02 0.01 15.34
Meezan NIB Soneri Summit * Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB
2011 2010 Rupees in millions 58,956 53,995 60,862 74,584 65,340 54,676 57,313 58,417 18,820 19,244 49,936 44,354 27,611 26,897 22,288 18,238 20,794 22,242 20,110 16,670 20,998 17,437 18,030 13,978 23,341 22,765 15,831 12,138 10,509 5,616 2,987 3,246 7,701 6,308 2,215 2,981 26 0.00 571 478 504,239 474,265
14.61
JS Barclays 0.5% 0.6% Islami 0.6%
SAMBA 0.5% DIB 0.7%
DB 0.1%
FWB 0.2%
BOT 0.1%
Burj 0.3%
ICBC 0% OIB 0%
Meezan 1.8% NIB 1.9%
HSBC 0.6% BOK 0.7% Albaraka 0.8% Silk 1.5% Citibank 0.6% Summit 1.7% Soneri 2.0%
38
Banking Survey 2011
Liquidity (Average Advances to Average Deposits)

LIQUIDITY (AVERAGE ADVANCES TO AVERAGE DEPOSITS) The total average advances to total average deposits ratio of banks included in this survey has decreased to 52.3% from 58.1% in 2010. Large Banks
Advances* 2010 469,794 431,797 321,427 242,520 234,595 197,351 1,897,484 Deposits 2010 832,134 747,375 567,611 431,295 371,281 354,011 3,303,707
2011 NBP HBL UBL MCB ABL BAF 515,748 433,206 323,783 212,695 226,500 188,824 1,900,756
2009 2011 Rupees in millions 464,286 927,415 425,623 933,632 342,689 633,889 242,320 491,147 219,134 399,561 178,823 401,246 1,872,875 3,786,890
2009 727,513 682,750 503,832 367,581 328,873 324,743 2,935,292
Average advances to average deposits ratio
* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.
In percentages
64.8
62.0
60.7
60.0
59.9
59.8
56.0
55.4
53.7
51.5
51.1
49.3
NBP
HBL
UBL 2011
MCB 2010
ABL
BAF
Banking Survey 2011
39
Medium Size Banks

Advances* 2010 105,693 130,446 140,359 117,066 91,397 114,376 49,316 61,682 46,822 55,720 912,877 Deposits 2010 249,761 220,188 255,908 195,315 160,314 208,177 131,068 99,112 82,017 91,017 1,692,877
2011 BAH SCB Askari Faysal HMB BOP Meezan NIB Soneri Summit ** 99,363 119,863 141,474 131,899 86,474 121,013 52,926 51,124 56,879 52,900 913,915
2009 2011 Rupees in millions 89,806 302,097 119,483 235,875 121,340 291,499 80,539 214,615 74,936 185,281 115,013 237,897 36,890 170,022 69,726 85,472 40,776 99,734 53,168 89,615 801,677 1,912,107
2009 189,280 206,916 205,913 123,655 142,185 190,858 100,331 92,839 73,548 84,329 1,409,854
* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits. ** 2010 and 2009 includes figures of Mybank.
In percentages
68.5 61.1
62.1 60.1
62.0 60.7
58.5 54.9
57.5 52.8
56.3 57.1
56.7 51.5
55.0 51.5
44.5 37.2 BAH
37.3 34.0 Summit
Askari
Faysal
SCB
HMB
2011
Soneri
2010
BOP
Meezan
NIB
40
Banking Survey 2011
Small Banks
Advances* 2011 Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB 17,705 46,086 25,875 21,296 20,298 19,310 20,998 16,782 21,792 13,417 10,287 2,814 7,650 2,140 26 510 246,986 2010 17,789 40,724 24,140 17,621 21,285 16,317 13,154 12,741 21,815 10,984 5,329 2,803 6,223 2,931 -00 413 214,269 Deposits 2009 2011 Rupees in millions 26,306 61,679 28,578 64,072 21,911 61,559 11,331 45,548 22,191 46,171 10,301 50,469 15,148 44,665 10,897 40,174 20,590 38,492 8,437 17,669 4,669 20,341 2,813 11,119 3,243 13,815 2,119 1,992 -00 1,524 355 721 188,889 520,010 2010 68,305 55,706 49,324 36,981 46,461 38,110 32,302 26,276 31,415 14,872 12,636 6,066 10,195 2,350 -00 848 431,847 2009 58,147 49,610 37,718 26,286 40,797 27,987 29,920 21,314 27,981 12,521 6,785 6,005 8,757 2,740 -00 690 357,258
In percentages
99.2 116.8
70.9 75.0
65.8 72.5 34.9 27.3 Citibank Silk
71.4 62.4
49.9 58.8
49.9 57.8
52.9 45.1 Albaraka
51.5 47.4
49.8 44.9 HSBC
49.7 44.4
45.8 47.2 BOK
46.5 32.7
45.5 44.4 Barclays
40.3 40.2 Islami
1.7
SAMBA
DB
FWB
Burj
2011
JS
DIB
OIB
BOT
ICBC
2010
Banking Survey 2011
41
Islamic Banks
Advances* 2010 49,316 24,140 16,317 21,815 5,329 116,917 Deposits 2010 131,068 49,324 38,110 31,415 12,636 262,553
2011 Meezan Albaraka Islami DIB Burj 52,926 25,875 19,310 21,792 10,287 130,190
2009 2011 Rupees in millions 36,890 170,022 21,911 61,559 10,301 50,469 20,590 38,492 4,669 20,341 94,361 340,883
2009 100,331 37,718 27,987 27,981 6,785 200,802
In percentages
71.4
62.4
52.9 40.3 40.2
51.5
47.4
45.1
37.3
Meezan
34.0
Albaraka
Islami 2011 2010
DIB
Burj
42
Banking Survey 2011
Asset Quality
ASSET QUALITY NPL compared to total loans and advances The average ratio of non-performing loans as percentage of gross loans and advances of all the banks included in this survey increased to 14.7% compared to 14% in 2010. However, this is not a true reflection of increase in NPL, as during the year SBP advised not to include Government guaranteed debts whose mark-up or principal has not been paid for over 90 days in NPLs. Similarly certain specific corporate debts where restructuring is in progress have also not been included in NPLs. Large Banks The average ratio of non-performing loans as a percentage of gross loans and advances of Large Banks increased to 11.9% as against 11.5% in 2010.
In percentages
16.1
14.9
13.4
12.9
Non performing loans as percentage of gross loans and advances
11.2
10.7
10.7
9.0
9.0
8.1
7.8
7.0
NBP
HBL
UBL 2011
MCB 2010
ABL
BAF
Banking Survey 2011

43
Medium Size Banks The average ratio of non-performing loans as a percentage of gross loans and advances of Medium Size Banks increased to 20.3% as against 19.3% in 2010.
In percentages
51.5 48.0
35.3 40.5
29.7 32.8
13.8 16.3 2.3 2.7
16.3 15.7
12.8 14.1
8.6 12.9
12.0 12.6
7.5 7.2
Askari
Faysal
Summit *
Small Banks The average ratio of non-performing loans as a percentage of gross loans and advances of Small Banks decreased to 13% from 13.9% in 2010.
BAH
SCB
2011
In percentages
19.4
HMB
Soneri
BOP
2010
Meezan
NIB
23.4 19.9 13.0 15.1 15.6
21.0 22.7
18.5
18.4
13.1 15.0
14.3
9.9 11.1
9.8 8.5
8.9
8.0 8.8
6.6 6.6
3.4 4.8
3.9 3.9
3.4 3.0 -00 -00 -00
SAMBA
Barclays
DB
Citibank
Albaraka
FWB
Silk
Burj
BOK
JS
Islami
DIB
HSBC
OIB
BOT
ICBC
2011
2010
44
Banking Survey 2011
Islamic Banks The average ratio of non-performing loans as a percentage of gross loans and advances of Islamic Banks decreased to 8.7% from 8.8% in 2010.
In percentages
15.1
18.5
13.0 8.9 8.8 8.0
Non performing loans as percentage of gross loan and advances
7.5 3.9 3.9
Meezan
7.2
Albaraka 2011
Islami 2010
DIB
Burj
Banking Survey 2011
45
Classification of Non-Performing Loans Large Banks

Classification-w ise specific provision for non-performing advances OAEM NBP Sub-standard 19 22 20 23 25 20 21 Doubtful 33 59 55 39 49 29 44 Loss 85 97 86 88 100 76 88 Total 72 78 78 82 86 65 76 In percentages HBL UBL MCB ABL BAF
Provision against non-performing loans as percentage of nonperforming loans
Rupees in millions BAF ABL
Classification wise nonperforming loans
MCB UBL HBL NBP 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
OAEM
Substandard
Doubtful
Loss
46
Banking Survey 2011
Medium Size Banks

Classification-w ise specific provision for non-performing advances OAEM Sub-standard 25 21 9 13 19 21 19 19 16 15 18 Doubtful 49 46 20 22 28 12 48 18 32 19 26 Loss 96 94 76 77 72 39 94 77 74 61 66 Total 94 83 69 66 64 36 87 68 64 49 58 In percentages
50 0.4
Rupees in millions
Summit
Soneri NIB Meezan BOP HMB Faysal Askari SCB BAH 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000
OAEM
Substandard
Doubtful
Loss
Banking Survey 2011

47
Small Banks
Classification-w ise specific provision for non-performing advances OAEM Citibank Silk BOK Albaraka HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB Sub-standard 26 14 18 18 6 3 11 2 24 7 12 Doubtful 51 9 37 21 9 1 18 23 36 1 12 Loss 99 58 84 56 51 48 79 46 48 98 72 100 56 32 72 Total 97 48 76 44 32 40 74 18 24 97 60 100 38 32 58 In percentages
Rupees in millions
OIB ICBC BOT FWB DB
Burj SAMBA DIB JS Barclays Islami HSBC Albaraka BOK Silk Citibank 0 2,000
OAEM
4,000
Substandard
6,000
Doubtful
8,000
Loss
10,000
12,000
48
Banking Survey 2011
Islamic Banks
Classification-w ise specific provision for non-performing advances OAEM Sub-standard 19 18 3 2 9 Doubtful 48 21 1 23 36 30 Loss 94 56 48 48 72 73 Total 87 44 40 24 60 57 In percentages
Rupees in millions
Burj
DIB
Islami
Albaraka
Meezan 0 500 OAEM 1,000 1,500 2,000 2,500 Doubtful 3,000 Loss 3,500 4,000 4,500 5,000
Substandard
Banking Survey 2011
49
50
Banking Survey 2011
Deposits
DEPOSITS Deposits for banks included in this survey increased by 14.6% to Rs. 6,219 billion at 31 December 2011 compared to Rs. 5,428 billion at 31 December 2010. Growth in Deposits Large Banks
Annual Increase 2010-11 2009-10 In percentages 11.5 14.4 24.9 9.5 11.7 12.7 13.9 17.3 7.6 12.9 13.3 9.0 14.6 12.6 Deposits 2010 2009 Rupees in millions 927,415 832,134 727,513 933,632 747,375 682,750 633,889 567,611 503,832 491,147 431,295 367,581 399,561 371,281 328,873 401,246 354,011 324,743 3,786,890 3,303,707 2,935,292 2011
In percentages
BAF ABL MCB UBL HBL NBP 10.2
11.2
15.6 12.2 16.9 12.9
Banking Survey 2011
51
Medium Size Banks

Annual Increase 2010-11 2009-10 In percentages BAH 21.0 32.0 SCB 7.1 6.4 Askari 13.9 24.3 Faysal 9.9 58.0 HMB 15.6 12.8 BOP 14.3 9.1 Meezan 29.7 30.6 NIB (13.8) 6.8 Soneri 21.6 11.5 Summit * (1.5) 7.9 13.0 20.1 Deposits 2010 2009 Rupees in millions 302,097 249,761 189,280 235,875 220,188 206,916 291,499 255,908 205,913 214,615 195,315 123,655 185,281 160,314 142,185 237,897 208,177 190,858 170,022 131,068 100,331 85,472 99,112 92,839 99,734 82,017 73,548 89,615 91,016 84,329 1,912,107 1,692,876 1,409,854 2011
* 2010 and 2009 includes figures of Mybank.
In percentages
Summit * Soneri (4.0) NIB
3.1 16.4
Meezan BOP HMB Faysal Askari SCB BAH 6.8 26.3 19.0 11.6 14.2
30.2
31.7
52
Banking Survey 2011
Small Banks
Annual Increase 2010-11 2009-10 In percentages (9.7) 17.5 15.0 12.3 24.8 30.8 23.2 40.7 (0.6) 13.9 32.4 36.2 38.3 8.0 52.9 23.3 22.5 12.3 18.8 18.8 61.0 86.2 83.3 1.0 35.5 16.4 (15.2) (14.2) -00 -00 (15.0) 22.9 20.4 20.9 Deposits 2010 2009 Rupees in millions 61,679 68,305 58,147 64,072 55,706 49,610 61,559 49,324 37,717 45,548 36,981 26,286 46,171 46,461 40,797 50,469 38,110 27,987 44,665 32,302 29,920 40,174 26,276 21,314 38,492 31,415 27,981 17,669 14,872 12,521 20,341 12,636 6,785 11,119 6,066 6,005 13,815 10,195 8,757 1,992 2,350 2,740 1,524 -00 -00 721 848 690 431,847 357,257
2011
520,010

In percentages OIB ICBC (14.7) BOT FWB DB Burj SAMBA DIB JS Barclays Islami HSBC BOK Albaraka Silk Citibank 3.0 13.6 6.4 31.6 27.8 22.2 34.3 18.8 17.3 37.3 25.6 36.1 73.1 2.2 -00
Banking Survey 2011

53
Islamic Banks
Annual Increase 2010-11 2009-10 In percentages 29.7 30.6 24.8 30.8 32.4 36.2 22.5 12.3 61.0 86.2 29.8 30.8 Deposits 2010 2009 Rupees in millions 170,022 131,068 100,331 61,559 49,324 37,717 50,469 38,110 27,987 38,492 31,415 27,981 20,341 12,636 6,785 340,883 262,553 200,801
2011

In percentages
Burj DIB Islami Albaraka Meezan 27.8 30.2 17.3 34.3
73.1
54
Banking Survey 2011
Market Share of Customer Deposits
2011 2010 In percentages NBP HBL UBL MCB ABL BAF BAH SCB Askari Faysal HMB BOP Meezan Less than 3 % 13 15 10 8 7 6 5 4 5 3 3 4 3 13 100 14 14 11 8 7 6 5 4 5 4 3 4 2 13 100
2011 2010 Rupees in millions 785,362 915,813 619,339 482,573 398,634 371,818 295,595 235,134 289,991 203,677 173,535 233,946 169,484 761,552 5,936,454 747,964 732,066 562,762 424,041 370,562 322,992 239,190 219,727 255,466 189,790 147,963 204,077 130,544 684,033 5,231,176
*Deposits from financial institutions have been excluded to analyse deposits from customers.
BOP Meezan 4% 3% HMB 3% Faysal 3%
Less than 3 % 13%
NBP 13%
HBL 15%
Askari 5% SCB 4% BAH 5% BAF 6% ABL 7%
MCB 8%
UBL 11%
Banking Survey 2011

55
Banks with less than 3% market share

2011 2010 In percentages 1.43 1.79 1.67 1.56 1.25 1.72 1.01 1.25 1.05 1.03 0.97 0.89 0.75 0.69 0.76 0.88 0.82 0.72 0.75 0.62 0.62 0.45 0.65 0.60 0.29 0.28 0.32 0.23 0.19 0.12 0.23 0.19 0.03 0.04 0.03 0.04 0.01 0.01 12.83 13.12 2011 2010 Rupees in millions 84,620 93,680 99,184 81,668 74,358 89,855 59,777 65,279 62,213 53,682 57,345 46,573 44,658 36,231 45,269 45,894 48,897 37,913 44,625 32,263 37,045 23,769 38,473 31,345 17,242 14,483 18,953 12,064 11,111 6,059 13,813 10,193 1,734 2,342 1,524 -00 711 741 761,552 684,033
NIB Soneri Summit ** Citibank Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA Burj DB FWB BOT ICBC OIB
* Deposits from financial institutions have been excluded to analyse deposits from customers. ** 2010 includes figures of Mybank.
SAMBA 0.3% DIB 0.6% JS 0.6% Barclays 0.8% Islami 0.8% HSBC 0.8%
DB 0.2% Burj 0.3%
FWB 0.2%
BOT 0% ICBC 0% OIB 0% NIB 1.4%
Soneri 1.7%
Summit 1.3% BOK 0.8% Albaraka 1.0% Silk 1.0% Citibank 1.0%
56
Banking Survey 2011
Current and Saving Deposits To Total Deposits (CASA)

CURRENT AND SAVING DEPOSITS TO TOTAL DEPOSITS (CASA)
Large Banks
Banks National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Medium Size Banks Bank Al-Habib Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Faysal Bank Limited Habib Metropolitan Bank Limited The Bank of Punjab Meezan Bank Limited NIB Bank Limited Soneri Bank Limited Summit bank Limited Small Banks Citibank N.A Silkbank Limited Albaraka Bank (Pakistan) Limited The Bank of Khyber HSBC Bank Middle East Limited
2011 2010 Percentage 65.2 68.7 67.8 79.4 72.3 66.3 70.0 71.6 68.2 79.7 70.4 61.0
58.1 83.6 67.8 49.2 48.3 52.7 64.8 60.3 60.1 42.5
59.4 78.3 72.3 52.0 47.8 51.3 65.1 54.0 59.2 55.3
58.9 47.4 45.4 45.2 54.4
46.1 47.8 43.9 51.8 49.2
Banking Survey 2011

57
Banks BankIslami Pakistan Limited Barclays Bank PLC JS Bank Limited Dubai Islamic Bank (Pakistan) Limited Samba Bank Limited Burj Bank Limited Deutsche Bank AG First Women Bank Limited Bank of Tokyo Mitsubishi UFJ, Limited Industrial and Commercial Bank of China Limited Oman International Bank S.A.O.G.
2011 2010 Percentage 48.4 53.1 56.7 53.8 49.6 44.4 39.5 62.4 27.7 1.4 50.2 49.8 45.1 57.3 50.4 55.0 51.2 52.1 78.7 41.9 44.5
58
Banking Survey 2011
Earning Per Share

EARNINGS PER SHARE (EPS)
Large Banks
Banks National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited
Medium Size Banks
Earnings / (loss) per share 2011 2010 Rupees per share 10.53 20.13 12.13 23.08 11.92 3.21 10.59 15.26 9.01 20.18 9.63 0.89
Bank Al-Habib Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Faysal Bank Limited Habib Metropolitan Bank Limited The Bank of Punjab Meezan Bank Limited NIB Bank Limited Soneri Bank Limited Summit Bank
5.16 1.41 2.3 1.55 3.14 0.66 3.67 (0.34) 0.96 (1.5)
4.17 0.95 1.34 1.45 2.68 (7.62) 2.27 (2.4) 0.17 (5.6)
Banking Survey 2011

59
Small Banks
Banks Silkbank Limited AlBaraka Bank (Pakistan) Limited The Bank of Khyber BankIslami Pakistan Limited JS Bank Limited Samba Bank Limited Dubai Islamic Bank (Pakistan) Limited Burj Bank Limited First Women Bank Limited
Earnings / (loss) per share 2011 2010 Rupees per share 0.26 0.46 1.41 0.77 0.42 0.16 0.28 (0.46) 3.11 (0.49) (2.19) 1.13 0.08 (0.66) (0.1) 0.01 (1.07) 0.3
60
Banking Survey 2011
Credit Ratings
CREDIT RATINGS
Large Banks
Banks
Rating Agency
Credit Rating Assigned Short Term Long Term A-1+ A-1+ A-1+ AA+ AA AA
National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited
Medium Size Banks
JCR-VIS JCR-VIS JCR-VIS PACRA PACRA PACRA
AAA AA+ AA+ A1+ A1+ A1+
Bank Al-Habib Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Faysal Bank Limited Habib Metropolitan Bank Limited The Bank of Punjab Meezan Bank Limited NIB Bank Limited Soneri Bank Limited Summit Bank Limited
PACRA PACRA PACRA PACRA PACRA PACRA JCR-VIS PACRA PACRA JCR-VIS
A1+ A1+ A1+ A1+ A1+ A1+ A-1+ A1+ A1+ A-2
AA+ AAA AA AA AA+ AAAAAAAAA
Banking Survey 2011
61
Small Banks
Banks
Rating Agency
Credit Rating Assigned Short Term Long Term A1 A+ A+ AA AA1 AAAA AAAa3 AA A A A+ A A+ Aa3 AA BBB+ A+ Aa2 A P-1 BBB
Citibank N.A
Moody's Fitch Standard & Poors
P-1 F1+ A-1 A-2 A2 A2 P-1 F1+ A2 A1 A-1+ P-1 F1+ A1 A-1 A-1 A-2 A-1 P-1 F1+ A2 A-1 P-1 Aa2 A2 A-2
Silkbank Limited Al-Baraka Bank (Pakistan) Limited The Bank of Khyber HSBC Bank Middle East Limited
JCR-VIS PACRA JCR-VIS Moody's Fitch PACRA
BankIslami Pakistan Limited Barclays Bank PLC
PACRA Standard & Poors Moodys Fitch
JS Bank Limited Dubai Islamic Bank (Pakistan) Limited Samba Bank Limited Burj Bank Limited Deutsche Bank AG
PACRA JCR-VIS JCR-VIS JCR-VIS Standards & Poor's Moodys Fitch
First Women Bank Limited Bank of Tokyo-Mitsubishi UFJ Limited
PACRA Standard & Poors Moodys Fitch
Industrial and Commercial Bank of China Limited Oman International Bank S.A.O.G.
Moodys JCR-VIS
Representing Deposits Rating only.
62
Banking Survey 2011
Number of Branches and Legend

NUMBER OF BRANCHES AND LEGEND Large Banks Banks Legend Number of Branches * 2011 2010 1,300 1,289 1,506 1,501 1,235 1,141 1,173 1,132 837 806 406 386 6,457 6,255
National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Medium Size Banks Bank Al-Habib Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Faysal Bank Limited Habib Metropolitan Bank Limited The Bank of Punjab Meezan Bank Limited NIB Bank Limited Soneri Bank Limited Summit Bank
353 143 245 257 138 284 275 179 214 165 2,253
303 162 235 226 135 273 222 178 184 80 1,998
Small Banks Citibank N.A Silkbank Limited Al-Baraka Bank (Pakistan) Limited The Bank of Khyber HSBC Bank Middle East Limited BankIslami Pakistan Limited Barclays Bank PLC JS Bank Limited Dubai Islamic Bank (Pakistan) Limited Samba Bank Limited Burj Bank Limited Deutsche Bank AG First Women Bank Limited Bank of Tokyo-Mitsubishi UFJ Limited Industrial and Commercial Bank of China Limited Oman International Bank S.A.O.G. * As at 31 December Citi Silk Albaraka BOK HSBC Islami Barclays JS DIB SAMBA DI DB FWB BOT ICBC OIB 16 85 89 62 11 102 15 147 75 28 50 3 38 1 2 3 727 16 85 89 50 11 102 15 126 51 28 50 3 38 1 2 3 670
Banking Survey 2011

63
64
Banking Survey 2011
Definitions
DEFINITIONS Average Advances Gross advances less provision. The average of opening and closing advances at two year ends is taken. The average of opening and closing deposits at two year ends is taken. Deposits with treasury & other banks, lending to financial institutions, investments and advances. The average of opening and closing earning assets at two year ends is taken. Head office capital account/ paid-up capital, reserves, unappropriated profit/accumulated loss, minority interest and surplus/ (deficit) on revaluation of assets. The average of opening and closing equity at two year ends is taken. The percentage change compared to the previous year. The percentage change over the last two years on annualised basis, i.e. Figure (year 2011) - 1 Figure (year 2009) Average Paying Funds Borrowings from financial institutions, remunerative deposits, sub-ordinated loans and liabilities against assets subject to finance lease. The average of opening and closing paying funds at two year ends is taken. Mark-up/ Return/ Interest expense.
Average Deposits
Average Earning Assets
Average Equity
Annual Increase
Annualised Increase
Cost of Funds
Banking Survey 2011

65
Equity
Equity includes shares capital / head office capital account, reserves, unappropriated profit/accumulated loss, minority interest and surplus / deficit on revaluation of assets. Mark-up/ Return/ Interest earned, dividend income, gain/loss on sale of securities, profit/loss from associates and unrealized gain/loss on held for trading securities. Loans, cash credits, overdrafts, ijaras, etc. and local & foreign bills discounted & purchased before provisions. Interest bearing assets means: cash and balances with treasury banks, balances with other banks, lending to financial institutions, fixed income investments and advances. Interest bearing liabilities means: borrowings, deposits and other accounts, sub-ordinated loans and liabilities against assets subject to finance lease. Fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts. Mark-up/return/interest earned (before provisions) as a percentage of interest bearing assets less markup/return/interest expensed as a percentage of interest bearing liabilities. Includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Operating fixed assets include intangible assets. Other assets include deferred tax assets.
Funded Revenue
Gross Advances
Interest Bearing Assets
Interest Bearing Liabilities
Non-funded Income
Net Interest Income Ratio
Operating Cost
Operating Fixed Assets
Other Assets
66
Banking Survey 2011
Other Liabilities
Other liabilities include deferred tax liabilities and liabilities against assets subject to finance lease. Total of specific and general provisions against gross advances. Charge & reversal of provision against non-performing advances, for diminution in value of investments, bad debts directly written-off and recoveries of previously written-off debts.
Provisions
Remuneration per Executive Return on Average Equity Spread
Remuneration of executives divided by number of executives. Profit before tax as a percentage of average equity. Difference between markup/return/interest earned on loans and advances as a percentage of average loans and advances, at two year ends, and mark-up/return/interest expense of deposits as a percentage of average deposits, at two year ends. Salaries, allowances, etc., staff retirement benefits and cost of redundancy / voluntary retirement / severance excluding Workers Welfare Fund. Charge for current (including prior) and deferred taxation in the profit and loss account.
Staff Cost
Taxation
Banking Survey 2011

67
An Economic & Budget Commentary
Offices in Pakistan
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2012 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name, logo and cutting through complexity are registered trademarks or trademarks of KPMG International.

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cutting through complexity