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NIB Bank Limited
Annual Report 2009

Contents

02 03 07 11 16 17 19 20 21 22

Company Information

24 25 101 102 103 104 105 107 108 181

Unconsolidated Statement of Changes in Equity Notes to the Unconsolidated Financial Statements Auditors Report to the Members on Consolidated Financial Statements Consolidated Balance Sheet

Notice of Annual General Meeting

Directors’ Report to the Shareholders

Statements of Compliance and Internal Controls Auditors’ Review Report on Statement of Compliance Auditors’ Report to the Members on Unconsolidated Financial Statements Unconsolidated Balance Sheet

Consolidated Profit and Loss Account

Consolidated Statement of Comprehensive Income Consolidated Cash Flow Statement

Unconsolidated Profit and Loss Account Unconsolidated Statement of Comprehensive Income Unconsolidated Cash Flow Statement

Consolidated Statement of Changes in Equity

Notes to the Consolidated Financial Statements

Pattern of Shareholding

Proxy Form

ANNUAL REPORT 2009

NIB BANK LIMITED

1

Company Information

Board of Directors

Francis Andrew Rozario Syed Aamir Zahidi Tejpal Singh Hora Chia Yew Hock Wilson Sng Seow Wah Mahmudul Huq Bhuiyan Asif Jooma Khawaja Iqbal Hassan Chia Yew Hock Wilson Syed Aamir Zahidi Mahmudul Huq Bhuiyan Yameen Kerai Rayomond Kotwal Muhammadi House I.I. Chundrigar Road Karachi-74000. UAN: (021) 111 333 111 Email: info@nibpk.com URL: www.nibpk.com

Chairman Director Director Director Director Director Director Director & President/CEO Chairman Member Member

Board Audit Committee

Company Secretary Chief Financial Officer Registered Office

Share Registrar Office

THK Associates (Pvt.) Limited Ground Floor, State Life Building No. 3 Dr. Ziauddin Ahmed Road Karachi-75530. UAN: (021) 111 000 322 M/s. KPMG Taseer Hadi & Co. Chartered Accountants M/s. Mandviwalla & Zafar Advocates Long Term: Short Term: Rating Agency: AAA1+ PACRA

Auditors

Legal Advisor

Credit Rating

2

NIB BANK LIMITED

ANNUAL REPORT 2009

812 shares. 1984. The options are to be granted to the Key Management Employees (KMEs) who are permanent/regular employees of the Bank and on its payroll. KPMG Taseer Hadi & Co. To receive. the 30th March 2010 to transact the following businesses: ORDINARY BUSINESS 1.Notice of Annual General Meeting Notice is hereby given that the Seventh Annual General Meeting of NIB Bank Limited will be held at Jinnah Auditorium. To consider and if thought fit to raise further share capital of the Bank by the issue and allotment of further shares of the Bank in terms of the Employees Stock Option Plan and for this purpose. 1984. Chartered Accountants have offered themselves for the re-appointment. an aggregate of 121.. To confirm the minutes of the 6th Annual General Meeting held on 24th April 2009. 6. To appoint auditors and fix their remuneration. To grant post facto approval to the payment of remuneration fixed by the Board for the Non Executive Directors. The number of directors to be elected has been fixed as 8 (eight) pursuant to the provisions of section 178(1) of the Companies Ordinance. Institute of Bankers Pakistan. a copy whereof was tabled at and considered by this meeting. to pass the following resolution as a Special Resolution: RESOLVED as and by way of Special Resolution THAT post facto approval for payment of remuneration fixed by the Board for Non Executive Director in terms of State Bank of Pakistan’s Prudential Regulation # G-1(C)(2) for Corporate / Commercial Banking be and is hereby granted. To elect the directors of the Bank for a period of 3 (three) years in accordance with the provisions of Section 178 of the Companies Ordinance. The following directors are retiring: a) b) c) d) e) f) g) h) Francis Andrew Rozario Syed Aamir Zahidi Tejpal Singh Hora Chia Yew Hock Wilson Sng Seow Wah Mahmudul Huq Bhuiyan Asif Jooma Khawaja Iqbal Hassan SPECIAL BUSINESS 5. consider and adopt the Audited Accounts of the Bank for the year ended 31st December 2009 together with Directors’ and Auditors’ Reports thereon. M/s.311. to pass the following resolution as a Special Resolution: RESOLVED as and by way of Special Resolution THAT subject to the approval of the Securities and Exchange Commission of Pakistan. in terms of State Bank of Pakistan Prudential Regulations # G-1(C)(2) for Corporate / Commercial Banking and for this purpose. who report directly to the Chief Executive and those employees who report to the employees who report directly to the Chief Executive but excluding executive directors and the Chief Executive. Karachi at 9:30 am on Tuesday. that is. the Bank be and is hereby authorized to raise further capital and to allot and issue further shares of the Bank up to a maximum of three percent (3%) of the total issued share capital of the Bank in terms of the Employees Stock Option Plan (ESOP). 2. 3. ANNUAL REPORT 2009 NIB BANK LIMITED 3 . 4. Moulvi Tamizuddin Khan Road. and for purposes of identification initialled by the chairman of this meeting and the principal features of which ESOP are summarized below: • • The options may be granted in respect of the ordinary shares of the Bank of up to a maximum of 3% of the total issued share capital of the Bank.

to a KME. and must be duly stamped. Ground Floor.I. Dr. A shareholder entitled to attend and vote at this meeting may appoint another shareholder as his / her proxy to attend and vote. A shareholder can appoint only one proxy to attend the meeting.) Limited. The exercise price payable by a KME exercising an option granted to and vested in him/her in pursuance of the ESOP. Any other business with the permission of the Chair. only up to 50% of the vested option for each tranche may be exercised. The maximum number of shares to be offered. 2001.10. the account holder or sub-account holder or investor account holder shall authenticate identity by showing his / her original computerized national identity card (CNIC) or original passport at the time of attending the meeting. The remaining 50% of vested options may only be exercisable up to 31st December 2017 and after the last vesting. signed and witnessed. and in respect of which options may be granted. in order to be effective.69 per share. 2013 and 2014 as approved by the Board of Directors of the Bank under the ESOP. will in accordance with the terms of the ESOP. Karachi (Pakistan) not later than 48 (forty eight) hours before the time of meeting. is Rs. Proxies. In case of corporate entity. The Committee constituted by the Board to administer and supervise the ESOP. shall not exceed 20% of the total number of shares in respect of which options may be granted. 5. shall file with the Bank at least 14 days before the meeting a notice of his intention to offer himself for election as director along with his consent in the prescribed form to his appointment as director of the Bank along with declaration as required under the Code of Corporate Governance (Listing Regulations) and “Fit and Proper Test” affidavit and a complete set of documents as required in terms of State Bank of Pakistan’s Prudential Regulations. State Life Building No. M/s. 4 NIB BANK LIMITED ANNUAL REPORT 2009 . must be received at the Registered Office of the Bank situated at Muhammadi House. 3. Upon the vesting. 1984 setting forth all material facts concerning the special business contained in the Notice to be considered at the meeting are annexed to the Notice of the meeting being sent to the members. The Bank shall strictly conform to the accounting policies specified in Rule 13 of the Public Companies (Employees Stock Option Scheme) Rules. whether he is retiring director or otherwise. CDC Account Holders will further have to follow the under mentioned guidelines as laid down in Circular 1 dated the 26th January 2000 issued by the Securities and Exchange Commission of Pakistan: For attending the meeting: In case of individuals. 2. determine the eligibility and quantum of grant for each KME. By Order of the Board Karachi : Dated : 9th March 2010 Notes: 1. Karachi (Pakistan). Yameen Kerai Company Secretary 3. I. expires on 31st December 2017. Share Transfer Books of the Bank will remain closed from 22nd March to 30th March 2010 (both days inclusive). 4. the Board of Directors’ resolution / power of attorney with specimen signature of the nominee shall be produced (unless it has been provided earlier) at the time of the meeting. Statements as required under Section 160(1)(b) of the Companies Ordinance.Notice of Annual General Meeting • • • • • • • 7. Chundrigar Road. THK Associates (Pvt. The time-period after vesting within which a KME may exercise his/her right to apply for shares against an option granted to and vested in him/her in pursuance of the ESOP. Shareholders are requested to notify any change in their addresses immediately to the Bank or Share Registrar. The vesting will only occur upon the Bank achieving the performance targets for the years 2012. Every candidate who seeks to contest the election. Ziauddin Ahmed Road.

are those Employees who report directly to the Chief Executive (President) and those Employees who report to the Employees who report directly to the Chief Executive (President). (ii) retain and instil loyalty amongst KMEs whose contribution is essential to the long term growth and profitability of the Bank. Employees Stock Option Plan (“ESOP”): The Bank had in 2007 proposed to adopt an ESOP. 1984 The material facts concerning the special business to be transacted at the Annual General Meeting are given below: Remuneration to Non Executive Directors and Chairman: As per State Bank of Pakistan’s Prudential Regulation # G-1(C)(2). For the purpose aforesaid it is proposed that the resolution set out in the notice convening the Annual General Meeting of the Bank be passed as and by way of a Special Resolution. Furthermore. (v) reward and incentivise KMEs who have joined the Bank and will assist the Board and the President in reshaping the Bank for it to become a major player in the market. In case of corporate entity.1. excluding executive directors and the Chief Executive (President). who for the purposes of the Plan. (vi) motivate KMEs towards meeting the Bank’s financial targets and (vii) retain the services KMEs on a long term basis. The purpose and intent of adopting the ESOP is to (i) enhance value creation for the Bank’s shareholders by aligning management’s interests with those of its shareholders. the scale of remuneration to be paid to the non-executive directors / chairman for attending the Board and / or Committee meetings shall be approved by the shareholders on a pre or post facto basis in the Annual General meeting. which should be linked to the actual number of Board / Committee meetings attended by an individual director / chairman. The Bank proposes to adopt the Employees Stock Option Plan (“ESOP”) (which is a revised version of the previous plan). pursuant to which the Bank shall grant options to upto 50 Key Management Employees (“KMEs”). and is therefore being placed for approval again.Notice of Annual General Meeting For appointing proxies: In case of individuals. In the event there is a change in the paid up share capital of the Bank on account of a rights or bonus issue or other corporate action. the Banks / DFIs during a calendar year may pay a reasonable and appropriate remuneration for attending the Board or its Committee(s) meeting(s). the Board of Directors’ resolution / power of attorney with specimen signature shall be submitted (unless it has been provided earlier) along with proxy form to the Bank. The proxy shall produce his original CNIC or original Passport at the time of the meeting. due to certain changes in the Bank’s equity and performance targets. which had also been approved by the shareholders at the Extraordinary General Meeting on 1st February 2007. The proxy form shall be witnessed by two persons whose names. of the account holder or sub-account holder or investor account holder shall be furnished with the proxy form. The options may be granted in respect of the ordinary shares of the Bank of up to a maximum of 3% of the total issued share capital of the Bank. to their non-executive directors and chairman.311.812 shares. For the purposes of the ESOP the term “Employee” refers to permanent/regular employees of the Bank. Attested copy of CNIC or the Passport. who are on the payroll of the Bank. before the shareholders at this Annual General Meeting. (iv) increase and emphasise variable compensation over fixed compensation. the original ESOP was required to be amended. The maximum number of shares in respect of which options may be granted in the aggregate is 121. (iii) to introduce a performance based incentive that will drive KMEs to achieve the Bank’s objectives to be one of the top five banks in the country. During 2009 an amount of Rs. addresses and CNIC Numbers shall be mentioned on the form. the account holder or sub-account holder or investor account holder shall submit the proxy form as per the above requirement. ANNUAL REPORT 2009 NIB BANK LIMITED 5 . STATEMENTS UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE. the number of shares in respect of which options may be granted in the aggregate will be increased such that the total number of shares available for the grant of options shall be 3% of the increased share capital of the Bank. the employer of choice and the bank that serves customers that currently have limited or no access to banking services.864 mn has been paid to non-executive directors. However.

2. 6 NIB BANK LIMITED ANNUAL REPORT 2009 . In case of failure of a KME to exercise the option up till 31st December 2017. 3.8% If the performance target for the Financial Year 2012 is achieved.1% Year 2013 . Such Committee’s decision shall be final. and the Bank shall not be obligated to issue or allot any shares in respect of such option or any portion thereof.Notice of Annual General Meeting The maximum number of shares to be offered. The remaining 50% of vested options (“Restricted Portion of the Vested Option”) may only be exercisable up to 31st December 2017 and after the last vesting. shall not exceed 20% of the total number of shares in respect of which options may be granted. 2013 and 2014 as approved by the Board of Directors of the Bank under the ESOP. The Exercise Price is Rs.554 million and ROE target is 7. only up to 50% of the vested option for each tranche (“Unrestricted Portion of the Vested Option”) may be exercised. upon the confirmation of the financial results. Options under the ESOP may be granted at any time up to 31st March 2011 to KMEs and prospective KMEs. The Directors of the Bank have no interest in the ESOP. the Committee constituted by the Board to administer and supervise the ESOP. the Bank shall strictly conform to the accounting policies specified in Rule 13 of the Rules. The time-period after vesting within which a KME may exercise his/her right to apply for shares against an option granted to and vested in him/her in pursuance of the ESOP. then the first tranche equivalent to 1/3rd of the Shares comprised in the option shall vest on 31st March 2013. i. After the grant of options. Upon the vesting. may consider: • • • increasing the number of shares offered to KMEs to whom an option has been granted (collectively and individually). which was approved by the Board of Directors of the Bank at its meeting held on 26th February 2010 and payable by a KME exercising an option granted to and vested in him/her in pursuance of the ESOP.PAT target is Pak Rs. the option so vested shall lapse. The vesting of the options granted takes place in three equal tranches and shall be triggered upon and subject to the achievement of the Performance Targets of Profit After Tax (“PAT”) and of Return On Equity (“ROE”) for the Financial Years 2012.210 million and ROE target is 5. The shares of the Bank offered under the ESOP will rank pari passu in all respects with the existing ordinary shares of the Bank. or decreasing the Exercise Price. adjustable in accordance with the following: • in the event there is a change in the paid up share capital of the Bank on account of a rights or bonus issue or other corporate action.PAT target is Pak Rs.10. For the purpose aforesaid it is proposed that the resolution set out in the notice convening the Annual General Meeting of the Bank be passed as and by way of a Special Resolution.e.9% Year 2014 . being persons recruited by the Bank. to a KME. then the tranche for that particular year shall lapse and shall be of no effect. expires on 31st December 2017. but in any event on or before 31st March 2011.794 million and ROE target is 9. the second and third tranches of the options for the years 2013 and 2014 will vest in the years 2014 and 2015 respectively upon achieving the performance targets determined for those years. determine the eligibility and quantum of grant for each KME. For the purposes of accounting. the value of the options would necessarily change due to there being more shares in circulation. and as such until the vesting the KMEs cannot dispose his/her entitlement to the shares. Similarly.69 per share. 4. the vesting will only occur upon the Bank achieving the performance targets for the years 2012. If the performance targets for a given year are not achieved then a two year grace period will be given. will in accordance with the terms of the ESOP. and accordingly in order to keep the value of the options intact and depending on the extent of the dilution suffered by the holders of the options. hereafter. 2013 and 2014 (+/-10%). If those targets are not achieved in the two year grace period..PAT target is Pak Rs. The Committee constituted by the Board to administer and supervise the ESOP. or a combination of the above. The targets are as follows: • • • Year 2012 . and in respect of which options may be granted.

These results have been achieved through better performance in all areas. The Bank continues to focus on generating lower cost deposits as a cornerstone of its strategy and plans to launch innovative deposit products in 2010. NIB succeeded in reducing its cost of funds by 266 bps over the year. the current account deficit improved from 8. As a result.4% to 5. reduction in cost of funds and tight control over provisions and operating expenses. The manufacturing sector is showing signs of growth. loan and low cost deposit growth. slower retirement of seasonal financing and delayed inflows from foreign sources and further interest rate cuts in the short term will depend on market liquidity and inflation. loans in the Bank’s core segments grew by 24% over 2008. Consequently. On a consolidated basis. the Bank achieved a planned reduction of Rs 28 bn of expensive term deposits which it had taken at the end of 2008 and in early 2009.3% of GDP and the fiscal deficit also reduced from 7. key indicators have shown improvement in the backdrop of the IMF program. Consequently market rates fell sharply during the first half of the year before stabilizing over the last six months. with the KSE-100 Index increasing by 60%. Liquidity is expected to remain tight with higher private sector credit offtake. to whom over Rs 11 bn of loans were disbursed. the State Bank of Pakistan eased its monetary policy with a 250 bps lowering of the discount rate during 2009. while the pass through of fuel subsidies is expected to contribute to a lower fiscal deficit. BANKING SECTOR As a consequence of reducing inflation. provisions for the industry for the first nine months of 2009 increased by 25% compared to the same period in 2008. After peaking at 25% in 2008. although revenue generation remains a concern for the Government. The nine month results of the banking sector showed a decline in profitability of 18% over 2008 driven mainly by higher provisioning expense. At the same time. falling oil and commodity prices resulted in lower imports. Deposits. The IMF program remains well on track and the Government continues to meet most monetary and structural reform targets. in which 120. by adding Rs 10 billion in current and savings accounts which now form 59% of the deposit base. total deposits reduced by Rs 10 billion. This improvement is a reflection of the steps taken by the Bank in 2008 when it brought in additional capital of Rs 12 billion and took a conservative provisioning approach to safeguard against future economic volatility. Consequently. Although exports reduced in FY09. NIB now has 223 branches in 60 cities across the country. inflation has reduced to a more manageable level of 10. the trade and current account deficits have continued to decline. The difference of Rs 800 million between the unconsolidated and consolidated results is primarily due to improvements in the value of the funds of PICIC Asset Management Company as a result of the recovery in the equity markets. NIB delivered a profit after tax of Rs 1. OPERATING RESULTS In 2009 NIB has declared a profit after tax of Rs 691 million on an unconsolidated basis. The Bank also increased its lending to top tier Corporate and Public Sector customers. During the first half of FY10. serving over 600. 222 branches are dedicated to the Bank’s Retail. but a speedy resolution of the power crisis which plagued industry last year is essential to revive the economy. Non-performing loans for the system surged by 28% to over Rs 400 billion as most borrowers remained stressed due to the weak economic environment and stagnant industry growth resulting from the power crisis in the country. During the year.Directors’ Report to the Shareholders THE ECONOMY Although economic conditions remain stressed. however these were offset by reduced foreign exchange income caused by higher premiums and lower ANNUAL REPORT 2009 NIB BANK LIMITED 7 .5%. Total banking sector loans declined by 4% as most lenders adopted a cautious stance in the backdrop of rising credit costs.000 new customers were added and new loans worth nearly Rs 10 billion were disbursed during 2009. up from 44% in 2008. Net markup income in 2009 increased by 23% over 2008 as a result of better quality loan growth and improvement in spreads. grew by over Rs 200 billion in the last quarter. a significant improvement over 2008. Consequently. SME and Small Businesses. The Bank achieved substantial capital gains in both the debt and equity markets through leveraging market opportunities.000 customers.4% to 5.494 million. continued borrowing by public sector enterprises. after remaining stagnant for most of 2009.2% of GDP. the stock market rebounded on the back of renewed investor confidence.

As of 31st December 2009.(Double A minus) and short term rating at A1+ (A one plus) in June 2009. NIB also aggressively pursued recovery and litigation of defaulting customers which resulted in cash recoveries of over Rs 2 billion during the year. the Bank is compliant with the provisions of the Code of Corporate Governance. the Bank expects to increase its lending activities in targeted segments. FUTURE OUTLOOK With a return to profitability in 2009 and an improving economic environment. present fairly its state of affairs. NIB rolled out its new Core Banking system and converted all branches to the new. net provisions reduced by more than 90% from 2008 levels. Non-markup income was thus maintained at the previous year’s levels excluding the impact of a 1-time dividend of Rs 750 million received from PICIC Asset Management Company in 2008. have been followed in preparation of financial statements and any departure therefrom has been adequately disclosed. and rehabilitation of genuinely distressed customers in 2009. As a result.6 million. as detailed in the listing regulations of Stock Exchanges and the Company is following these meticulously. more efficient and flexible platform. PACRA maintained NIB’s long term rating at AA. This was achieved through a strong focus on improving operating efficiency. even in this difficult environment. the Bank’s cost/income ratio reduced from 99% in 2008 to 74% in 2009. Consequently. There are no significant doubts upon the Bank's ability to continue as a going concern. The Bank also appreciates the efforts made by the State Bank of Pakistan to encourage more realistic provisioning levels by restoring some of the benefit of Forced Sale Value of collateral. International Accounting Standards. The Bank focused on prudent customer selection. Being aware of their responsibilities under the Code of Corporate Governance.Directors’ Report to the Shareholders market volatility. Although the recent uptick in inflation and rising utilities costs will exert pressure on expenses in 2010.000 man days of training. Proper books of accounts of the Bank have been maintained. cash flows and changes in equity. CREDIT RATING Recognizing the progress that NIB has made and the strength of the Bank’s capital base. the Bank remains committed to managing its expenses in the best interests of its shareholders and improving its efficiency ratios. and continued to make investments in technology that will benefit NIB’s customers. the Board of Directors state that: • • • • • • • • The Financial Statements prepared by the management of the Bank.171. the results of its operations. the Bank was able to reduce its operating expenses by over 20% over 2008. and with credit conditions beginning to ease. There has been no material departure from the best practices of Corporate Governance. Despite these investments. The system of internal control is sound in design and has been effectively implemented and monitored. 8 NIB BANK LIMITED ANNUAL REPORT 2009 . Appropriate accounting policies. The rating on NIB’s term finance certificates issued in March 2008 was also maintained at A+ (A plus). NIB continues to improve productivity and operating efficiencies by introducing greater automation and keeping a strong control over costs. In 2009. During the year NIB improved staff quality through hiring and more than 16. Progress was also made towards the implementation of new HR and MIS systems. as applicable in Pakistan. have been consistently applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. The bank also upgraded infrastructure in most branches. CORPORATE GOVERNANCE During the year under review. except hereinafter mentioned. NIB is positioned for stronger growth in the coming year. The Bank’s revenue and deposit base are on the right trajectory. the value of investments of the Provident Fund (un-audited) was Rs.

327 3.648 16.671 176.052 30.21 2005 19. Chia Yew Hock Wilson * Mr.45 2004 11.018 2.124 32. Willie Wai Kong Chan ** Total Meetings Eligible to Attend 5 5 5 5 5 2 0 5 3 5 Total Meetings Attended 5 5 4 2 4 2 0 5 1 3 Percentage 100% 100% 80% 40% 80% 100% – 100% 33% 60% Leave of absence was granted in case the directors were not able to attend the Board Meeting.021 93.909 39.423 4.528 40.229 391 111 398 31 123 0.63) 2007 81. Given the growth expected in the bank’s business and the expected continued volatility in Pakistan’s credit markets the Board of Directors felt that earnings should be retained to supplement Tier 1 capital.164 (10.872 36.682 5.146 (710) (490) (0. Tan Soo Nan ** Mr.421 8.998) (7.119 41. Mahmudul Huq Bhuiyan Mr.019 4.364 1.566 46. Sng Seow Wah * Khawaja Iqbal Hassan Mr.475) (2.437 4.99 • • During 2009 five Board meetings were held and were attended by the Directors as follows: Name of Directors Mr.557 1. no dividends were declared for the year.224 22 118 0.402 2.437 5.004 927 2.699 28.623 21.243 644 691 0.344 104. CFO.17 2008 80.453 22. Francis Andrew Rozario Syed Aamir Zahidi Mr.362 1.213 3.932 116. Tejpal Singh Hora Mr. Company Secretary and their spouses and minor children.737 10. * Appointed in 2009 ** Resigned in 2009 ANNUAL REPORT 2009 NIB BANK LIMITED 9 .021 495 1.362 598 233 713 27 104 0.Directors’ Report to the Shareholders • • No trading during the year in the shares of the Bank was carried out by the Directors.920 208. therefore. Six years financial data for NIB unconsolidated is provided hereunder: SIX YEARS FINANCIAL DATA Rs mn Advances Deposits and other accounts Total Assets Net Assets Share capital Net Mark-up / Interest Income Total Non-Markup / Interest income Total Non-Markup / Interest expense Profit / (Loss) before taxation Profit / (Loss) after taxation Basic / diluted earnings / (loss) per share (Rupees) 2009 84.400 1.586 178.44) 2006 31. Asif Jooma Mr. CEO.

PATTERN OF SHAREHOLDING The pattern of shareholding as at 31st December 2009 is included in the annual report. Fullerton Financial Holdings. NIB also thanks its employees. NIB is grateful to its major shareholder. On behalf of the Board. The management’s statements are included in the annual report. been a constant source of support and guidance which is sincerely appreciated. and to continuously improving the quality of their experience with the Bank. ACKNOWLEDGEMENT NIB is grateful to its customers for their continued support. Rozario Chairman Khawaja Iqbal Hassan President & CEO 10 NIB BANK LIMITED ANNUAL REPORT 2009 . SUMMARY NIB remains sound and strong with a capital adequacy well in excess of regulatory requirements. BSD Circular letter No. The Board of Directors and the management of NIB remain committed to achieving the Bank’s mission of improving the quality of life of millions and invite those who are not yet part of the NIB family to join in the Bank’s exciting future. a subsidiary of Temasek Holdings of Singapore. 2 of 2005 and Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). and is dedicated to always keeping them first. The SBP. SECP and other regulatory bodies have.Directors’ Report to the Shareholders INTERNAL CONTROL AND RISK MANAGEMENT FRAMEWORK The Board is pleased to endorse the statements made by the management relating to internal control and the risk assessment framework to meet the requirement of the State Bank of Pakistan (SBP) BSD Circular No. Francis A. the Bank’s most important asset. 7 of 2004. who have repeatedly demonstrated their commitment to the Bank and to Pakistan. and for their untiring efforts to help achieve NIB’s vision of becoming the most admired financial institution in Pakistan. as always. The Board is confident that NIB’s strategy will allow it to achieve its core purpose of enabling the success and realizing the dreams of the people of Pakistan. for their commitment.

Statement of Compliance with Code of Corporate Governance For the year ended December 31. The Audit Committee comprises of three members. 12. along with agenda and working papers. The Bank has applied the principles contained in the Code of Corporate Governance (CCG) in the following manner: 1. 11. An orientation course on Code of Corporate Governance was arranged during 2009. Two casual vacancies occurred during 2009 were duly filled in. The Board has approved the appointment of the Chief Financial Officer. are duly authorized by the Board of Directors. were circulated at least seven days before the meetings. CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding. The directors of the Bank have given a declaration that they are aware of their duties. All the powers of the Board have been duly exercised and decisions on material transactions. 8. 4. a Development Financial Institution or Non Banking Finance Company. determined by the CEO. The Bank encourages representation of independent non-executive directors on its Board including those representing minority interests. 9. 5. An Internal Audit Manual is approved by the Board. including the Bank. The directors. A complete record of particulars of significant policies along with the dates on which these were approved is being maintained. The Bank has complied with all the corporate and financial reporting requirements of the code. Company Secretary and Head of Internal Audit and the terms and condition of their employment. 16. The financial statements of the Bank were duly endorsed by the CEO and CFO before approval of the Board. which has been signed by all the directors and employees of the Bank. including appointment and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board at the appropriate time. The directors have confirmed that none of them is serving as a director in more than ten listed companies. The Board held five meetings during the year. The CFO and Company Secretary attended all the meetings of the Board of Directors during the year. 10. 14. 3. 7. The Bank has prepared a “Statement of Ethics and Business Practices”. 2009 This statement is being presented to comply with Code of Corporate Governance contained in Listing Regulations of stock exchanges where the Bank’s shares are listed and Regulation G-1 of SBP’s Prudential Regulations. The Board has developed a vision/mission statement and an overall corporate strategy. 2. The terms of reference of the Committee have been formed and advised to the Committee for compliance. ANNUAL REPORT 2009 NIB BANK LIMITED 11 . At present all the directors are non executive (as defined under CCG) except for the Chief Executive Officer. 6. All the resident directors of the Bank are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company. powers and responsibilities. 15. The Directors’ report has been prepared in compliance with the requirements of the code and fully describes the salient matters required to be disclosed. 17. The Internal Audit department has conducted audit of branches and various departments of the Bank during the year. 13. Significant policies of the Bank have been prepared and approved by the Board. all of whom are non-executive directors (as defined under CCG). Written notices of Board meetings. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Bank as required by the Code. The Bank has an effective Internal Audit department. The minutes of the meetings were appropriately recorded and circulated. The meetings of the Board were presided over by the Chairman. None of the directors of the Bank are members of any Stock Exchange.

On behalf of the Board. The Board of Directors has also constituted two additional sub-committees namely Risk Management Committee and Human Resource Committee. their spouses and minor children do not hold shares of the Bank and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan. The terms of reference of these Committees have been formulated and advised for compliance. Francis A. Rozario Chairman Khawaja Iqbal Hassan President & CEO 12 NIB BANK LIMITED ANNUAL REPORT 2009 . the Human Resource Committee is comprised of three members and as per its terms of reference it has met 2 times during the year against 2 required. The Risk Management Committee comprises of three members and is required to meet at least four times a year. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in this regard. 19. Whereas. 21. and during the year it had held 5 meetings. We confirm that all the material principles contained in the code have been complied with.Statement of Compliance with Code of Corporate Governance For the year ended December 31. that they or any of the partners of the firms. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan. 20. 2009 18.

and the relationship with. A clear organizational structure exists which supports clear lines of communication. The Bank has written and implemented policies and procedures for most of the areas of the Bank’s business. 9. The Bank has also developed a Business Continuity Plan and has also successfully tested the operation of its Disaster Recovery site. Management has set up an effective compliance function to ensure ongoing monitoring of the Bank’s adherence with all laws and regulations. During the year. staff and IT infrastructure and will continue to do so to strengthen internal controls as it grows its business volumes and activities. Risk Assessment 10. 2009 Internal Control System Management acknowledges its responsibility for establishing and maintaining a system of internal control directly related to and designed to provide reasonable assurance to achieve the following objectives: • • • Efficiency and effectiveness of operations Compliance with applicable laws and regulations Reliability of financial reporting The bank is continuously adding to its internal control systems by enhancing the quality of processes. An effective internal audit system exists which is responsible for evaluation of internal control system on continuous basis and reports directly to the Audit Committee. The management has defined roles and responsibilities of key management personnel. The underlying controls are periodically tested by means of a continuous process of self assessment. The Bank has adopted a statement of ethics and business practices that is signed by all employees. 5. Furthermore this statement is annually signed by all Directors. The Bank has adopted a mission/vision statement and corporate strategy. 6. ANNUAL REPORT 2009 NIB BANK LIMITED 13 .Statement on Internal Controls For the year ended December 31. which have been approved by the Board of Directors. 2. The Bank is largely compliant with the risk management guidelines issued by the SBP and has given a separate statement on the same. The Bank has also developed a ‘Regulatory Matrix’ that allows mapping applicable regulations with specific controls. 8. The Audit Committee. the management has broadly evaluated the internal control system in the light of internal control guidelines issued by the State Bank of Pakistan. Control Environment 1. and is pleased to make the following disclosures on the components of the internal control system. has written terms of reference and reports to the Board. duly approved by the Board. the external auditors. which comprises of non-executive directors. 4. Control Activities 11. In 2009 all branches of NIB migrated to a widely used and robust core banking platform leading to greater consistency in business processes and enhancing controls across the network. It also receives reports from the internal audit department and the external auditors on the system of internal control and any material control weaknesses that have been identified and discusses the actions to be taken in areas of concern with the executive management. 3. 7. It reviews the approach adopted by the company’s internal audit department and the scope of.

It is pertinent to mention that development of an internal control system is an ongoing process through which management reviews and strengthens the internal control system. equity prices. the Credit Risk Policy Manual has been developed and duly implemented. 14 NIB BANK LIMITED ANNUAL REPORT 2009 . which is designed to manage rather than eliminate risks. 2009 12. it can only provide reasonable but not absolute assurance against material misstatement or loss. 15. resulting in a potential loss to earnings and capital. Market Risk Management (MRM) Market Risk Management is a control system. Risk Management Framework The acceptance and management of financial risk is inherent to banking business activities. Based on the results of an evaluation of the internal control system and key features of the control framework enumerated above. credit spreads and / or commodity prices. external auditors and regulators especially for improvements in the internal control system and takes timely action to implement such recommendations. which allows management to closely supervise and monitor risks caused by movements in market rates or prices such as interest rates. an Integrated Risk Management Group in the Bank formulates risk management Policies and Procedures in line with Bank’s defined strategies and to monitor the following areas: a) Credit Risk Management b) Market and Liquidity Risk Management c) Operational Risk Management Credit Risk Management (CRM) CRM is viewed as an ongoing activity where credit risks are regularly identified and assessed. The Bank has a functioning Management Information System and has developed Key Performance Indicators for its businesses enabling it to monitor budget versus actual performance. Management gives due consideration to the recommendations made by the internal. management is of the view that the internal control system during the year was acceptable in design and has been effectively implemented throughout the year. Monitoring 14. FX rates. Information and Communication 13. To manage credit risks appropriately.Statement on Internal Controls For the year ended December 31. It involves the identification. As such. In accordance with the Risk Management guidelines issued by the SBP. measurement. credit committees at different locations have been established. Internal Audit periodically carries out audits for branches and Head Office Divisions to monitor compliance with the Bank’s standards. The Bank has strict Know Your Customer/Anti Money Laundering policies and has developed stringent anti-fraud programs and controls. not only incorporating best practices but also ensuring the establishment of a robust credit control environment. In order to achieve earnings targets with a high degree of reliability and to avoid losses through a strong credit process. The Bank continues to use an e-KYC form to further strengthen its KYC/AML regime. This Manual is under constant review and regular updates are made therein through the issuance of various “Credit Bulletins”. thereby. It determines the quality of the credit portfolio and assists in balancing risk and reward. monitoring and controlling of Risk.

a comprehensive control mechanism has been outlined in the Market and Liquidity risk management policies which are frequently and updated in line with the changes in market dynamics. monitoring. people and systems or from external events.Statement on Internal Controls For the year ended December 31. 2009 Treasury Mid Office. Operational Risk Management (ORM) Operational risk is the risk of loss resulting from inadequate or failed internal processes. In order to ensure adequate controls for money market. under the supervision of Integrated Risk Management Group. FX and equity transactions. Khawaja Iqbal Hassan President & CEO Date: 26 February 2010 Karachi ANNUAL REPORT 2009 NIB BANK LIMITED 15 . and management of key operational risks and has also implemented a template for collecting Operational loss data on a periodic basis. is responsible for ensuring that market risk parameters are properly adhered to. The Bank has also implemented tools for identification. The Bank has written and implemented its Operational Risk Policy duly approved by the Board.

to the extent where such compliance can be objectively verified. We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal control covers all controls and the effectiveness of such internal controls. 2009 requires the Company to place before the Board of Directors for their consideration and approval related party transactions distinguishing between transactions carried out on terms equivalent to those that prevail in arm’s length transactions and transactions which are not executed at arm’s length price recording proper justification for using such alternate pricing mechanism. whether the Statement of Compliance reflects the status of the Bank’s compliance with the provisions of the Code of Corporate Governance and report if it does not. with the best practices contained in the Code of Corporate Governance as applicable to the Bank for the year ended December 31. all such transactions are also required to be separately placed before the audit committee. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm’s length price or not. The responsibility for compliance with the Code of Corporate Governance is that of the Board of Directors of the Bank. Based on our review. Further. A review is limited primarily to inquiries of the Bank personnel and review of various documents prepared by the Bank to comply with the Code. nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Bank’s Compliance. 2009. Further sub-regulation (xiii) of Listing Regulations 35 (previously Regulation No. KSE/N-269 dated January 19. Date: 26 February 2010 Karachi KPMG Taseer Hadi & Co. 37) notified by the Karachi Stock Exchange (Guarantee) Limited vide circular no.Auditors’ Review Report to the Members on Statement of Compliance with Best Practices of Code of Corporate Governance We have reviewed the Statement of Compliance with the Best Practices contained in the Code of Corporate Governance prepared by the Board of Directors of NIB Bank Limited to comply with listing regulations of the Karachi. Chartered Accountants 16 NIB BANK LIMITED ANNUAL REPORT 2009 . Lahore and Islamabad Stock Exchanges where the Bank is listed. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. Our responsibility is to review. We are only required and have ensured compliance of requirement to the extent of approval of related party transactions by the board of directors and placement of such transactions before the audit committee. in all material respects.

We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. and the returns referred to above received from the branches have been found adequate for the purposes of our audit. unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof (here-in-after referred to as the ‘financial statements’) for the year then ended. Our responsibility is to express an opinion on these statements based on our audit. the unconsolidated balance sheet. and the Companies Ordinance. An audit also includes assessing accounting policies and significant estimates made by management. and prepare and present the financial statements in conformity with approved accounting standards and the requirements of the Banking Companies Ordinance. An audit includes examining. unconsolidated cash flow statement. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement. unconsolidated statement of comprehensive income. evidence supporting amounts and disclosures in the financial statements. It is the responsibility of the Bank’s Board of Directors to establish and maintain a system of internal control. the expenditure incurred during the year was for the purpose of the Bank’s business. b) ii) iii) c) in our opinion and to the best of our information and according to the explanations given to us. 1962 (LVII of 1962). we report that: a) in our opinion. unconsolidated profit and loss account. evaluating the overall presentation of the financial statements. unconsolidated statement of comprehensive income. proper books of account have been kept by the Bank as required by the Companies Ordinance. in our opinion: i) the balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance. investments made and the expenditure incurred during the year were in accordance with the objects of the Bank and the transactions of the Bank which have come to our notice have been within the powers of the Bank. and the Companies Ordinance. 1984 (XLVII of 1984). We believe that our audit provides a reasonable basis for our opinion and after due verification. which in the case of loans and advances covered more than 60% of the total loans and advances of the Bank. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the changes mentioned in note 6 with which we concur. 1984 (XLVII of 1984). on a test basis. 1962 (LVII of 1962). in which are incorporated the unaudited certified returns from the branches except for 24 branches which have been audited by us and we state that we have obtained all the information and explanations which.Auditors’ Report to the Members We have audited the annexed unconsolidated balance sheet of NIB Bank Limited (“the Bank”) as at 31 December 2009 and the related unconsolidated profit and loss account. and unconsolidated statement of changes in equity together with the notes forming part thereof conform with approved accounting ANNUAL REPORT 2009 NIB BANK LIMITED 17 . and the business conducted. 1984 (XLVII of 1984). were necessary for the purposes of our audit. as well as. to the best of our knowledge and belief.

and the Companies Ordinance. its cash flows and changes in equity for the year then ended. The opinion on the financial statements for the year ended 31 December 2008 included an emphasis of matter paragraph regarding presence of significant inherent uncertainty in the assumptions underlying the value in use calculations of cash-generating units (CGUs) to which goodwill has been allocated for impairment testing as at 1 October 2008. was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance. in the manner so required and give a true and fair view of the state of the Bank’s affairs as at 31 December 2009 and its true balance of profit. Chartered Accountants Amir Jamil Abbasi 18 NIB BANK LIMITED ANNUAL REPORT 2009 . 1962 (LVII of 1962).Auditors’ Report to the Members standards as applicable in Pakistan. 1980 (XVIII of 1980). Date: 26 February 2010 Karachi KPMG Taseer Hadi & Co. 1984 (XLVII of 1984). expressed a modified opinion thereon. and give the information required by the Banking Companies Ordinance. The financial statements of the Bank for the year ended 31 December 2008 were audited by another firm of chartered accountants whose report dated 7 March 2009. and d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance.

NIB Bank Limited Unconsolidated Balance Sheet As at December 31, 2009
Note 2009 2008

(Rupees '000') ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 7 8 9 10 11 12 13 14 15 8,834,275 3,683,783 5,681,887 62,432,977 84,021,406 3,114,632 26,943,271 6,474,384 6,932,348 208,118,963 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities NET ASSETS REPRESENTED BY: Share capital Share deposit money Reserves Accumulated loss Deficit on revaluation of assets - net 21 40,437,271 – 8,464,894 (7,258,893) 41,643,272 (115,027) 41,528,245 CONTINGENCIES AND COMMITMENTS 23 28,437,271 12,000,000 8,326,684 (7,757,283) 41,006,672 (1,308,164) 39,698,508 16 17 18 19 20 1,574,207 62,523,365 93,919,805 3,997,600 – – 4,575,741 166,590,718 41,528,245 1,432,084 23,651,366 104,586,167 3,999,200 – – 5,541,790 139,210,607 39,698,508 9,355,104 793,843 12,459,621 35,176,823 80,344,193 3,702,426 26,664,438 6,533,228 3,879,439 178,909,115

22

The annexed notes from 1 to 42 and annexure - 1 form an integral part of these unconsolidated financial statements.

Khawaja Iqbal Hassan
President / Chief Executive

Francis A. Rozario
Chairman / Director

Asif Jooma
Director

Syed Aamir Zahidi
Director

ANNUAL REPORT 2009

NIB BANK LIMITED

19

NIB Bank Limited Unconsolidated Profit and Loss Account For the year ended December 31, 2009
Note 2009 2008

(Rupees '000')
Mark-up / Return / Interest earned Mark-up / Return / Interest expensed Net Mark-up / Interest Income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net Mark-up / Interest income after provisions NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized gain on revaluation of investments classified as held-for-trading Other income Total Non Mark-up / Interest income NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Workers welfare fund Impairment of goodwill Impairment of other intangible assets Total Non Mark-up / Interest expense Extraordinary / Unusual items PROFIT / (LOSS) BEFORE TAXATION Taxation - Current - Prior years - Deferred PROFIT / (LOSS) AFTER TAXATION Accumulated loss brought forward Transfer to statutory reserve Right shares issue cost (net of tax) ACCUMULATED LOSS CARRIED FORWARD Basic / diluted Earnings / (Loss) per share (Rupees) 31 30 30 24 25 11.5 18,272,363 12,872,357 5,400,006 524,505 603,426 67,398 1,195,329 4,204,677 729,953 260,103 72,162 598,800 – 20,815 1,681,833 5,886,510 5,345,307 6,229 (122,097) 13,000 – – 5,242,439 – 644,071 99,771 – (146,748) (46,977) 691,048 (7,757,283) (138,210) (54,448) (7,258,893) 0.17 15,201,691 10,799,816 4,401,875 8,833,641 809,387 14,372 9,657,400 (5,255,525) 678,970 1,047,259 436,330 194,310 – 65,007 2,421,876 (2,833,649) 6,433,122 322,211 325,271 – 1,040,000 43,637 8,164,241 – (10,997,890) – – (3,523,211) (3,523,211) (7,474,679) (282,604) – – (7,757,283) (2.63)

26 27

28 29

The annexed notes from 1 to 42 and annexure - 1 form an integral part of these unconsolidated financial statements.

Khawaja Iqbal Hassan
President / Chief Executive

Francis A. Rozario
Chairman / Director

Asif Jooma
Director

Syed Aamir Zahidi
Director

20

NIB BANK LIMITED

ANNUAL REPORT 2009

NIB Bank Limited Unconsolidated St a tement of Comprehensive Income For the year ended December 31, 2009
2009 2008

(Rupees '000')
Profit / (Loss) after taxation for the year Other comprehensive income Total comprehensive income for the year 691,048 – 691,048 (7,474,679) – (7,474,679)

Surplus / deficit on revaluation of ''Available-for-Sale'' securities is presented under a separate head below equity as ''Surplus / deficit on revaluation of assets'' in accordance with the requirements specified by the Companies Ordinance, 1984, and the State Bank of Pakistan vide its BSD Circular 20 dated August 4, 2000 and BSD Circular 10 dated July 13, 2004.

The annexed notes from 1 to 42 and annexure - 1 form an integral part of these unconsolidated financial statements.

Khawaja Iqbal Hassan
President / Chief Executive

Francis A. Rozario
Chairman / Director

Asif Jooma
Director

Syed Aamir Zahidi
Director

ANNUAL REPORT 2009

NIB BANK LIMITED

21

682 6.833.045.123 38.706.071 (260.986) (45.246.981.999 (10.742) (21.310) (34.302.290) (68.075 – (194.439) (125.023.473) (7.734 – (4.754.312 – – 603.000) – 1.621 (20.739.968 465.505 67.871.264.861 3.660 (796.705.303) (678.675 (7.956.777.372 75.507.508) 59.127) 6.751 200.516 (308.061) 223.103) 383.954 (12.388.027) (216.974) 29.259) (12.000 809.068 (10.516) 7.641 14.000 273.269.772.052) 875.383 (26.041.426 6.531 (275.115) (2.398 1.628) 203.169) (Increase) / decrease in operating assets Lendings to financial institutions Held-for-trading securities Advances Other assets (excluding advance taxation) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net Investments in available-for-sale securities Net Investments in held-to-maturity securities Net Investments in associates Net Investments in subsidiaries Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed off Net cash (used in) / from investing activities (26.714 1.800) (1.024 22 NIB BANK LIMITED ANNUAL REPORT 2009 .362) (978.265) (616. 2009 2009 2008 (Rupees '000') CASH FLOWS FROM OPERATING ACTIVITIES Profit / (Loss) before taxation Dividend Income Adjustments for non-cash items Depreciation Amortization Workers welfare fund Gain on sale of securities Gain on sale of property and equipment Provision against non-performing loans and advances Bad debts written off directly Fixed assets written off Impairment of intangible assets Impairment of goodwill Provision for diminution in the value of investments Other provisions / write offs 644.000 (598.346.229 1.997.047.649) 5.387 322.637 1.427) 142.303.691) (21.062 13.676 (339.807) (2.716) 524.040.149) 498.418 298.095 (3.890) (1.298 308.228 43.NIB Bank Limited Unconsolidated Cash Flow St a tement For the year ended December 31.666.478) (547.211 11.983) 8.085.592) 28.052.

947 The annexed notes from 1 to 42 and annexure .947 12.369.720.441) 2.518 10.176) – 15.111 10.NIB Bank Limited Unconsolidated Cash Flow St a tement For the year ended December 31.574 (1.148.518.999.000 (450) (7.991.058 3. Khawaja Iqbal Hassan President / Chief Executive Francis A.200 12.766) (85. 2009 Note 2009 2008 (Rupees '000') CASH FLOWS FROM FINANCING ACTIVITIES Net (payments) / receipts against sub-ordinated loans Share deposit money Dividend paid Payment of lease obligations Right shares issue cost Net cash (used in) / from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 32 (1.600) – (75) – (83.571.571) 11.000.148. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director ANNUAL REPORT 2009 NIB BANK LIMITED 23 .1 form an integral part of these unconsolidated financial statements.

679) (7. Khawaja Iqbal Hassan President / Chief Executive Francis A.893) – (54.606.283) 14.744 74.000 12.472 (282.000 12.679) 6.643.874 – 7.174 – – – – – (7.048 691.006.000 (12.455.210) (7. recorded directly in equity Issue of share capital Right shares issue cost (net of tax) 28.594 – – – 5.000.303 – 6.048 12.874 8.026.000 7.NIB Bank Limited Unconsolidated Statement of Changes in Equity For the year ended December 31. 2009 Reserves Capital Share Share deposit Share capital money premium Statutory reserve (Rupees '000') Revenue General reserve Accumulated (loss) Total Balance as at December 31.419.026.594 5.000. 2009 – 40.000.448) (54.437.177 41.000.1 form an integral part of these unconsolidated financial statements. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director 24 NIB BANK LIMITED ANNUAL REPORT 2009 .448) – 41. 2008 Total comprehensive income for the year Profit after taxation for the year Transaction with owners.177 12.000 (12.000.618 – – – 74.968 – 639.000) – – – – – – 8.419.271 – – The annexed notes from 1 to 42 and annexure .000) Transfer to statutory reserve Balance as at December 31.271 – – – – – 691.618 – – – 138.210 212.000.472 – (54.246.757.000 26.448) (138.000.246.604) 22.606.258.472 – – – (7.448) (54.474.017.672 Balance as at December 31.474.272 12. 2007 Total comprehensive income for the year Loss after taxation for the year Transaction with owners.303 – 12.804 – – – – 5. recorded directly in equity Shares issued under scheme of amalgamation Share deposit money 22.437.000.

2. the Companies Ordinance. or at its proportionate interest in the identifiable assets and liabilities of an acquiree.NIB Bank Limited Notes to the Unconsolidated Financial Statements For the year ended December 31. The application of this standard is not likely to have an effect on the Bank's financial statements. 2010: – Revised IFRS 3 Business Combinations (applicable for annual periods beginning on or after July 01.3 – ANNUAL REPORT 2009 NIB BANK LIMITED 25 . Investment Property (IAS 40) for banking companies till further instructions. 1962. the State Bank of Pakistan (SBP) has issued various circulars from time to time. The SBP vide BSD Circular No. These unconsolidated financial statements have been presented in Pakistan Rupees. the Companies Ordinance. The Bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance. interpretations and amendments to published approved accounting standards that are not yet effective The following standards. 1962. I. STATUS AND NATURE OF BUSINESS NIB Bank Limited "the Bank" is incorporated in Pakistan and its registered office is situated at Muhammadi House. The consolidated financial statements of the Bank. 1962. dated August 26. BASIS OF PRESENTATION These unconsolidated financial statements represent separate financial statements of the Bank. 1984 and the directives issued by the SBP. 3. In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. contingent consideration to be measured at fair value. 2009 1. on a transaction-by-transaction basis. according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28. Further.2 3. the provisions of and directives issued under the Banking Companies Ordinance. The purchases and sales arising under these arrangements are not reflected in these unconsolidated financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40. which is the Bank's functional and presentation currency. 1984 and the directives issued by the SBP shall prevail. provisions of and directives issued under the Banking Companies Ordinance. 2002 has deferred the applicability of International Accounting Standard 39.Chundrigar Road. an investment arm of the Government of Singapore. 2009) requires accounting for changes in ownership interest by the group in a subsidiary. 2008. Permissible forms of trade-related modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis.1 STATEMENT OF COMPLIANCE These unconsolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. The Bank is listed on all the stock exchanges in Pakistan and has 223 branches (2008: 244 branches). NIB Bank Limited is a subsidiary of Bugis Investments (Mauritius) Pte. the requirements of these standards have not been considered in the preparation of these unconsolidated financial statements. with the related gain or loss recognized in the profit and loss account and any non-controlling (minority) interest to be measured at either fair value. investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance. its subsidiaries and associates are presented separately. Karachi in the province of Sindh. IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. Standards. any pre-existing interest in an acquiree to be measured at fair value. In case requirements differ. amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after January 01. 10. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. Amended IAS 27 Consolidated and Separate Financial Statements (effective for annual periods beginning on or after July 01. Accordingly. However.I. Limited which in turn is a wholly owned subsidiary of Temasek Holdings. 3. 2009) broadens among other things the definition of business resulting in more acquisitions being treated as business combinations. The amounts are rounded off to the nearest thousand rupees. 3. transaction costs other than share and debt issue costs to be expensed. 1984.

Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
while maintaining control, to be recognized as an equity transaction. When the group loses control of a subsidiary, any interest retained in the former subsidiary will be measured at fair value with the gain or loss recognized in the profit and loss account. The application of the standard is not likely to have an effect on the Bank's financial statements. – IFRIC 15 – Agreement for the Construction of Real Estate (effective for annual periods beginning on or after October 01, 2009) clarifies the recognition of revenue by real estate developers for sale of units, such as apartments or houses, 'off-plan', that is, before construction is complete. The amendment is not relevant to the Bank’s operations. IFRIC 17 – Distributions of Non-cash Assets to Owners (effective for annual periods beginning on or after July 01, 2009) states that when a Bank distributes non cash assets to its shareholders as dividend, the liability for the dividend is measured at fair value. If there are subsequent changes in the fair value before the liability is discharged, this is recognized in equity. When the non cash asset is distributed, the difference between the carrying amount and fair value is recognized in the income statement. As the Bank does not distribute non cash assets to its shareholders, this interpretation has no impact on the Bank’s financial statements. The International Accounting Standards Board made certain amendments to existing standards as part of its second annual improvements project. The effective dates for these amendments vary by standard and most will be applicable to the Bank’s 2010 financial statements. These amendments are unlikely to have an impact on the Bank’s financial statements. Amendment to IFRS 2 – Share-based Payment – Group Cash-settled Share-based Payment Transactions (effective for annual periods beginning on or after January 01, 2010). Currently effective IFRS requires attribution of group share-based payment transactions only if they are equity-settled. The amendments resolve diversity in practice regarding attribution of cash-settled share-based payment transactions and require an entity receiving goods or services in either an equity-settled or a cash-settled payment transaction to account for the transaction in its separate or individual financial statements. Amendment to IAS 32 Financial Instruments: Presentation – Classification of Rights Issues (effective for annual periods beginning on or after February 01, 2010). The IASB amended IAS 32 to allow rights, options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be classified as equity instruments provided the entity offers the rights, options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. This interpretation has no impact on the Bank’s financial statements. IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on or after July 01, 2010). This interpretation provides guidance on the accounting for debt for equity swaps. This interpretation has no impact on the Bank’s financial statements. IAS 24 Related Party Disclosures (revised 2009) – effective for annual periods beginning on or after January 01, 2011. The revision amends the definition of a related party and modifies certain related party disclosure requirements for government-related entities. The amendment may result in certain changes in disclosures. Amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Assets, Minimum Funding Requirements and their Interaction (effective for annual periods beginning on or after January 01, 2011). These amendments remove unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement. These amendments result in prepayments of contributions in certain circumstances being recognized as an asset rather than an expense. This amendment is not likely to have any impact on the Bank’s financial statements. Improvements to IFRSs 2008 – Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – (effective for annual periods beginning on or after July 01, 2009). The amendments specify that if an entity is committed to a plan to sell a subsidiary, then it would classify all of that subsidiary’s assets and liabilities as held for sale when the held for sale criteria in IFRS 5 are met. This applies regardless of the entity retaining an interest (other than control) in the subsidiary; and disclosures for discontinued operations are required by the parent when a subsidiary meets the definition of a discontinued operation. This amendment is not likely to have any impact on the Bank’s financial statements.

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Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
4. BASIS OF MEASUREMENT These unconsolidated financial statements have been prepared under the historical cost convention, except for the measurement of certain investments and commitments in respect of forward foreign exchange contracts that are stated at revalued amounts / fair values, staff retirement benefits (Gratuity) which are stated at present value and certain financial assets that are stated net of provisions. 5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of unconsolidated financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and expenses. It also requires the management to exercise its judgment in the process of applying the Bank's accounting policies. Estimates and judgments are continually evaluated and are based on historical experience, including expectations of future events that are believed to be reasonable under the circumstances. The areas where various assumptions and estimates are significant to the Bank's financial statements or where judgment was exercised in application of accounting policies are as follows: 5.1 Investments Held-to-maturity securities As described in note 6.5, held-to-maturity securities are investments where the management has positive intent and ability to hold to maturity. The classification of these securities involves management judgment as to whether the financial assets are held-to-maturity investments. Held-for-trading securities Investments classified as held-for-trading are those which the Bank has acquired with an intention to trade by taking advantage of short term market / interest rate movements and are to be sold within 90 days. Available-for-sale securities Investments which are not classified as held-for-trading or held-to-maturity are classified as availablefor-sale. 5.2 Impairment Valuation and impairment of available-for-sale equity investments The Bank determines that available-for-sale equity investments is impaired when there has been a significant or prolonged decline in the fair value below its cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal volatility in share price. In addition, impairment may be appropriate when there is evidence of deterioration in the financial health of the investee, industry and sector performance, changes in technology and operational and financing cash flows. Impairment of investments in associates and subsidiaries The Bank considers that a significant or prolonged decline in the recoverable value of investments in associates and subsidiaries below their cost may be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value in use. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the profit and loss account. Subsequent reversal of impairment loss, upto the cost of investments in associates and subsidiaries, are credited to the profit and loss account. Impairment of non financial assets (excluding deferred tax and goodwill) Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that the carrying amount may not be recoverable. If any such indication exists, the Bank estimates the recoverable amount of the asset and the impairment loss, if any. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of future cash flows from the asset discounted at a rate that reflects market interest rates adjusted for risks specific to the asset. If the recoverable amount of an intangible or tangible asset is less than its carrying value, an impairment loss is recognized

ANNUAL REPORT 2009

NIB BANK LIMITED

27

Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss. A reversal of an impairment loss on intangible assets (excluding goodwill) is recognized as it arises provided the increased carrying value does not exceed that which it would have been had no impairment loss been recognized. Impairment of Goodwill Impairment testing involves a number of judgmental areas which are subject to inherent significant uncertainty, including the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting and the assessment of the discount rate appropriate to the business. The carrying amount of goodwill at the balance sheet date was Rs. 24,221 million (2008: Rs. 24,221 million). 5.3 Provision against non-performing advances Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the SBP, management also applies subjective criteria of classification and accordingly the classification of an advance may be downgraded on the basis of evaluation of credit worthiness of the borrower, its cash flows, operations in its account and adequacy of security in order to ensure accurate measurement of the provision. For portfolio impairment provision on consumer advances, the Bank follows the general provision requirements set out in the Prudential Regulations. 5.4 Retirement Benefits The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation are disclosed in note 34.2 to these unconsolidated financial statements. 5.5 Useful life of property and equipment Estimates of useful life of property and equipment are based on management's best estimate. 5.6 Income Taxes In making the estimates for income taxes currently payable by the Bank, the management looks at the current income tax laws and the decisions of appellate authorities on certain issues in the past. In making the provision for deferred taxes, estimates of the Bank's future taxable profits are taken into account. 6. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these unconsolidated financial statements are the same as those applied in the preparation of the unconsolidated financial statements of the Bank for the year ended December 31, 2008 (except for the change mentioned in note 6.1 below) and are enumerated as follows: 6.1 Changes in accounting policies Effective January 01, 2009 the Bank has changed its accounting policies in the following areas: Determination and Presentation of Operating Segments An operating segment is a component of the Bank that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Bank's other components. An operating segment's operating results are reviewed regularly by the CEO. Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. There is no change in the operating segments being reported as a result of the adoption of IFRS 8 - Operating Segments, other than changes in certain disclosures. Presentation of Financial Statements The Bank applied revised IAS 1 Presentation of Financial Statements (2007), which became effective as of January 01, 2009. As a result, all owner changes in equity are presented in the statement of changes in equity,

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ANNUAL REPORT 2009

dealer's margin or are securities included in the portfolio for which there is evidence of a recent actual pattern of short-term profit taking. Under this method. where necessary.2 Business combinations Business combinations are accounted for using the purchase method. documentation charges and other lease income are recognized as income when they are realized. the unearned income. identified assets acquired. there is no impact on earnings per share. i. the Bank was required to bear interest at 11 percent per annum and pay interest to the GoP at 10 percent per annum and transfer the remaining 1 percent per annum margin to a counter part fund to be used by the bank for financing feasibility surveys. 6. other than investments in subsidiaries and associates are classified as held-to-maturity. ANNUAL REPORT 2009 NIB BANK LIMITED 29 . 2009 whereas all non-owner changes in equity are presented in the statement of comprehensive income. Since the change in accounting policy only impacts presentation aspects. Under this method. Dividend income is recorded when the right to receive the dividend is established. held-for-trading and available-for-sale. liabilities and contingent liabilities assumed are fair valued at the acquisition date. 6. Unrealized lease income is suspended. Interest or mark-up recovered on non-performing advances is recognized on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as amended from time to time.5 Investments Investments of the Bank. the excess of aggregate lease rentals and the estimated residual value over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill. 6. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity and the Bank has the positive intent and ability to hold upto maturity. interest rate movements. Gains / losses on termination of lease contracts.Notes to the Unconsolidated Financial Statements For the year ended December 31. The financing method is used in accounting for income on finance leases and hire purchase transactions. commission and brokerage income is recognized at the time of performance of the service.4 Grants and assistance In terms of Kreditanstalt fur Wiederaufbau (KFW) loan re-lent by the Government of Pakistan (GoP). in accordance with the requirements of the Prudential Regulations issued by the SBP. such premium / discount is amortized through the profit and loss account over the remaining period of maturity using the effective interest rate method so as to produce a constant rate of return. Held-for-trading These securities are either acquired for generating a profit from short-term fluctuations in market prices. irrespective of the extent of any minority interest. Rental income from assets given on operating lease is recognized on time proportionate basis over the lease period. Comparative information has been re-presented so that it also is in conformity with the revised standard. market surveys and similar investigations destined for the preparation of projects. 6.3 Revenue recognition Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis.e. Fee. Where debt securities are purchased at premium or discount.

Unquoted equity securities are valued at the lower of cost and break-up value. Gains and losses on remeasurement are included in the profit and loss account. 6. Held-for-trading These are measured at subsequent reporting dates at fair value. Available-for-sale Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair value. Investment in Subsidiaries and Associates Investments in subsidiaries and associates are valued at cost less impairment. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned.. Provision for diminution in the value of term finance certificates is made as per the aging criteria prescribed by the Prudential Regulations issued by the SBP. Securities purchased under agreement to resale (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. Gain or loss on sale of investments in subsidiaries and associates is included in the profit and loss account for the year.6 Lendings to / borrowings from financial institutions Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party liability is included in borrowings. Provision for diminution in the value of securities (except term finance certificates) is made for impairment. Investments are initially recognized at fair value which. Investments in other unquoted securities are valued at cost less impairment losses. 30 NIB BANK LIMITED ANNUAL REPORT 2009 . 2009 Available-for-sale These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities. A reversal of an impairment loss on associates and subsidiaries is recognized as it arises provided the increased carrying value does not exceed that it would have been had no impairment loss been recognized. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. A decline in the carrying value is charged to the profit and loss account.e.Notes to the Unconsolidated Financial Statements For the year ended December 31. if any. includes transaction costs associated with the investments. in the case of investments other than held-for-trading. transactions are shown under advances. Initial measurement All “regular way” purchases and sales of investments are recognized on the trade date. less any impairment loss recognized to reflect irrecoverable amounts. i. if any. In the case of the continuous funding system. Subsequent measurement Held-to-maturity These are measured at amortized cost using the effective interest rate method. The break-up value of these equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. Any surplus / deficit arising thereon is kept in a separate account shown in the balance sheet below equity and taken to the profit and loss account when actually realized upon disposal or when the investment is considered to be impaired. the date that the Bank commits to purchase or sell the asset.

The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods.7 Advances Advances including continuous funding system and net investment in finance lease are stated net of provisions. 6. Assets held under finance lease Leasehold land is stated at cost.2 to these unconsolidated financial statements. Assets held under operating lease Operating lease assets are stated at cost less accumulated depreciation and impairment. Repairs and maintenance are charged to the profit and loss account as and when incurred. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income. 2009 6.8 Operating fixed assets Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Bank.Notes to the Unconsolidated Financial Statements For the year ended December 31.5% against the secured consumer portfolio in accordance with the Prudential Regulations issued by the SBP. depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged upto the month of disposal. Normal repairs and maintenance are charged to profit and loss account for the year as and when incurred. if any. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability. at the rates given in Note 12. Freehold and leasehold land is stated at cost. Capital work in progress These assets are stated at cost. Gains and losses on disposal of property and equipment if any. are taken to the profit and loss account for the year. Advances are written off when there is no realistic prospect of recovery. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases. In respect of additions and deletions to assets during the year. ANNUAL REPORT 2009 NIB BANK LIMITED 31 . Major repairs and improvements are capitalized and assets so replaced are retired. if any. keeping in view the requirements of the Prudential Regulations issued by the SBP. General provision The Bank maintains general provision at the rate of 5% against the unsecured consumer portfolio and at the rate of 1. if any. Provisions comprise of: Specific provision The Bank maintains specific provisions for doubtful debts at a level that can reasonably be anticipated. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value. Assets held under finance lease are stated at cost less accumulated depreciation.

core deposit relationships. Fair value less costs to sell is the amount obtainable for the sale of the CGU in an arm’s length transaction between knowledgeable.11 Staff retirement benefits Defined contribution plan The Bank operates a defined contribution provident fund for all its permanent employees. CGUs to which goodwill is allocated are tested for impairment annually. 2009 6. the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU. 6.10 Sub-ordinated loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Equal monthly contributions are made to the fund by both the Bank and the employees at the rate of 10% of basic salary. 32 NIB BANK LIMITED ANNUAL REPORT 2009 . liabilities and contingent liabilities of the acquired entity. If the recoverable amount of the CGU is less than its carrying amount. Amortization is carried out on the straight line method at the rates given in Note 13 to these unconsolidated financial statements.Notes to the Unconsolidated Financial Statements For the year ended December 31. willing parties. Actuarial gain / loss is recognized using the 10% corridor approach. if any. or more frequently when there is an indication that the carrying value of the CGU may be impaired. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual basis. and their fair value can be measured reliably. Corridor is defined as the greater of 10% of the present value of defined benefit obligations and plan assets. Impairment losses on goodwill are not reversed. The estimated useful lives are as follows: Brand Core deposit relationships Core overdraft / working capital loan relationships 5 years 11 years 11 years Computer software is stated at cost less accumulated amortization and accumulated impairment loss. Provision is made in accordance with actuarial recommendations. Goodwill is initially recognized as an asset at cost and is subsequently measured less any accumulated impairment loss. 2006. Impairment losses are charged to the profit and loss account. 6. Value in use is the present value of expected future cash flows from the CGU. Eligible employees are those employees who have joined the service of the Bank on or before March 31. Other intangible assets Other intangible assets are recognized separately from goodwill when they are specifically identifiable or arise from contractual or other legal rights. Defined benefit plan The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years. if any. Goodwill is allocated to each cash-generating unit (CGU) expected to benefit from the synergies of the acquisition. Amortization is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. The recoverable amount is the higher of the CGU’s fair value less costs to sell and its value in use. Actuarial valuation is carried out periodically using the “Projected Unit Credit Method”. Intangible assets include the value of the brand. and core overdraft / working capital loan relationships and are stated at cost less accumulated amortization and accumulated impairment losses.9 Goodwill and other intangible assets Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Bank’s interest in the identifiable assets.

Income tax expense is recognized in the profit and loss account except to the extent that it relates to items recognized directly in equity. The Bank recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". The Bank recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". 2009 6. Forward foreign exchange contracts and foreign bills purchased are valued at forward rates applicable to their respective maturities. Provisions are reviewed quarterly and are adjusted to reflect the current best estimate. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. other than statutory appropriations. 6.14 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Bank intends either to settle on a net basis. or to realize the assets and to settle the liabilities simultaneously. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. The related deferred tax asset / liability is adjusted against the related deficit / surplus. 6.Notes to the Unconsolidated Financial Statements For the year ended December 31. in the period in which such appropriations are approved. 6.13 Provisions Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. 6. Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements. 6. The Bank records deferred tax assets / liabilities using tax rates. ANNUAL REPORT 2009 NIB BANK LIMITED 33 . that are expected to be applicable at the time of their reversal.17 Foreign currencies Transactions in foreign currencies are translated to Rupees at the foreign exchange rates prevailing at the transaction date.12 Taxation Income tax expense comprises current and deferred tax. Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the balance sheet date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes.16 Distributions of bonus shares and other appropriations to reserves The Bank recognizes all appropriations. enacted or substantially enacted at the balance sheet date.15 Dividend distribution Dividend is recognized as a liability in the period in which it is declared. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years. to reserves including those in respect of bonus shares made after the balance sheet date.

investments. Fair values are obtained from quoted market prices in active markets. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. Consumer and Small Enterprises It represents banking services offered to individual and small businesses through a retail branch banking and alternate distribution network. Assets. lending. which is subject to risks and rewards that are different from those of other segments. is carried forward as unrealized gain in view of the uncertainty associated with its realization. respectively. bills payable and other payables. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. lendings to financial institutions. along with advisory. 6. trade finance. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the balance sheet date. 6. 1971. advances and certain receivables. leasing. 6. are translated at the rates of exchange guaranteed by the Bank and the Government. commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15. 6. The Bank’s primary format of reporting is based on business segments. liabilities. 2009 Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statements at committed amounts. when the obligation specified in the contract is discharged.19 Financial instruments All financial assets and liabilities are recognized at the time when the Bank becomes a party to the contractual provisions of the instrument. Financial liabilities are derecognized when they are extinguished i.Notes to the Unconsolidated Financial Statements For the year ended December 31. Financial liabilities include borrowings.1 Business Segments Corporate and Investment Banking It represents seasonal finance.20 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. Financial assets carried on the balance sheet include cash and bank balances. Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which.21 Segment reporting A segment is a distinguishable component of the Bank that is engaged in providing products or services (business segment). Assets against which the constituents have exercised their option to transfer exchange risk to the Bank and liabilities for which the Bank has exercised its option to transfer exchange risk to the Government. guarantees and bills of exchange relating to corporate and commercial customers.21. as a matter of prudence. or in providing products or services within a particular economic environment (geographical segment).e. 6. underwriting and IPO related activities. deposits. These banking services include lending. export finance. cancelled or expired. 34 NIB BANK LIMITED ANNUAL REPORT 2009 . deposits and distribution of insurance products along with other financial products and services tailored for such customers.18 Cash and cash equivalents For the purposes of the cash flow statement. Financial assets are derecognized when the Bank loses control of the contractual rights that comprise the financial assets. cash and cash equivalents include cash and balances with treasury banks and balances with other banks.

ANNUAL REPORT 2009 NIB BANK LIMITED 35 . Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. trade.21. 6.2 Geographical segments The Bank operates in Pakistan only. deposit products & transaction services offered by the Bank to Small & Medium Enterprises and Commercial businesses operating in the manufacturing. and provides customers with products that meet their demands for management of liquidity. 6. cash flow. interest rate fluctuations and foreign exchange risk.22 Assets acquired in satisfaction of claims The Bank occasionally acquires assets in settlement of certain advances. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. These are stated at the lower of the carrying value of the related advances and the current fair value of such assets.23 Deposits Deposits are initially recorded at the amount of proceeds received. 6.Notes to the Unconsolidated Financial Statements For the year ended December 31. 2009 Small & Medium Enterprises and Commercial It represents all funded and non-funded credit facilities. 6. wholesale and service sectors. Treasury Treasury manages the asset and liability mix of the Bank.24 Earnings per share The Bank presents earnings per share (EPS) data for its ordinary shares.

357 1.3 7. 4.681. interest is received from the correspondent banks at various rates.638. CASH AND BALANCES WITH TREASURY BANKS In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit accounts With National Bank of Pakistan in local currency current accounts 7.964) 793.40% (2008: 10.587.720 722.148 1.621 12.459.174.233.00%) per annum and having maturities upto one week.601.3 This includes special cash reserve at nil return required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme.1 2.1 This includes National Prize Bonds of Rs.010 million (2008: Rs.2 These represent unsecured call money lendings to financial institutions carrying mark-up rates ranging from 12.887 1.50% (2008:15. 7.1 373.00% to 17.4 725.681.355.101 711.97% to 12. 9.459. 8.834.324.275 3.393 3.314. 36 NIB BANK LIMITED ANNUAL REPORT 2009 . 1962. 9. This balance is current by nature and on increase in the balance over a specified amount.1 This includes amount held in automated investment plans.10% to 13.550 7.104 Note 2009 2008 (Rupees '000') 7.485 8.Notes to the Unconsolidated Financial Statements For the year ended December 31.2 7.887 9.285.2 The current account is maintained under the requirements of Section 22 of the Banking Companies Ordinance.683.255 million).621 – 12.000 11.702 9.783 126.887 – 5. BALANCES WITH OTHER BANKS In Pakistan in current accounts Outside Pakistan in current accounts Provision against doubtful balances 8.3 & 9.671 400.681.843 8.3 These represent repurchase agreement lendings to financial institutions carrying mark-up rates ranging from 11.90%) per annum.964) 3.217 671.590 797.000 4. 7. 7.560. 7.354 3. 2009 7.621 9.887 5.705 582.674 407.621 12.747 (3.2 9.807 (3.507 418.687.4 This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme at nil return (2008: 0. LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (Reverse Repo) 9.956.759 2.459.00%) per annum and having maturities upto three months.1 Particulars of Lendings In local currency In foreign currencies 5.00% to 20.4 3.

518 4.805.592 (20.994.000 2.926 – 5.217 4.704 37.975 4.295 2.325 22 (126.2 10.531.936 840.906 (210.548 million (2008: Rs.154.330 – 2.316.176.621 9.673. 11.765 13.261 4.616.314 4.187.674) 23.899.174.323 4.754.900 310.102 4.650 – – 25.585.616.14 (1.11 &10.551) 23.969) 62.net of provisions Deficit on revaluation of available-for-sale securities Net Investments 10.468 (1.032 2.592) 8.584.413.015.120 2.207 64.046.251) 35.619.13 & 10.082.067 26.796.876 – – – – – 38.304 50.956.427 430.847.356 1.814.441 2. 10.754.791) 36.791) 27.953.6 10.899.182 64.304 50.174 (59.572 – – – 38.067. 2009 9.959.906 – 8.831 2.092 138.7 10.664.775.647 4.323 4.790.743.280 852.311 – 8.659) 26.793.987.687.953.356 1.280 852.652.953.943 6.2 10.745.1 The market value of securities held as collateral against lendings to financial institutions as at December 31.424.286 421.887 4.709.825.9 10.392 3.097.021.509 – – – – – 8.657 2.074 (1.762.819 66.432.906 18.865 (901.427 430.923.961.4 Securities held as collateral against lendings to financial institutions 2009 Further given as collateral 2008 Further given as collateral Held by Bank Total Held by Bank Total (Rupees '000') Market Treasury Bills Pakistan Investment Bonds 2.790.9 10.102 4.046.261 37.212 1.691.421 – 100.977 500.501 205.592 42.193 138.116.518 4.380.097.614.675 4.651 ANNUAL REPORT 2009 NIB BANK LIMITED 37 .937 3. 4.033 123.652.385 – 2.704 28.730 – – 66.801.1 (a) Investments by type: Note Held by Bank 2009 Given as Collateral 2008 Given as Collateral Total Held by Bank (Rupees '000') – – Total Held-for-trading securities Available-for-sale securities – – – – Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference shares Ordinary shares / Certificates in listed companies / modarabas Ordinary shares of unlisted companies Term Finance Certificates Units / Certificates of mutual funds Held-to-maturity securities 10.844 702.8 & 10.905 832.977 4.326 4.292.000 1.000 2.10 4.295 2.433.5 10.522) 62.033.825.227.424.3 10.053.391 66.8 & 10.771 205.765 52.678 1.808.16 10.16 4.366 million).000 5. INVESTMENTS 10.964.418) 38.360 11.4.4 10.115.219 Pakistan Investment Bonds Term Finance Certificates Associates Subsidiaries Investments at cost Provision for diminution in value of investments Investments .588.168 (1.848) 38.853 10.775.565.Notes to the Unconsolidated Financial Statements For the year ended December 31.000 1.2 10.342.067 17.647 500.217 4.975 – – – 8.959 (901.698.033 123.499 (186.771 – 100.12 &10.951 930.313 7. 2009 amounted to Rs.823 10.374.741 24.193 138.703 8.951 4.000 8.663.584.900 310.647 4.741 63.

Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
Note 10.1(b) Investments by segments: Federal Government Securities Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Fully Paid-up Ordinary Shares & Modaraba Certificates Listed Unlisted Term Finance Certificates Listed Unlisted Units / Certificates of Mutual Funds Associates Subsidiaries Total investments at cost Provision for diminution in value of investments Investments - net of provisions Deficit on revaluation of available-for-sale securities Net Investments 10.2 22 10.13 & 10.14 10.8 10.9 10.10 10.11 & 10.16 10.12 & 10.16 1,553,191 2,994,559 430,765 1,899,518 4,584,741 63,673,468 (1,053,969) 62,619,499 (186,522) 62,432,977 784,305 206,697 310,067 2,097,647 4,790,704 37,663,865 (901,791) 36,762,074 (1,585,251) 35,176,823 10.6 10.7 1,082,391 66,217 2,342,182 64,280 10.2 10.2 10.3 10.4 10.5 42,614,937 8,183,344 – 8,501 205,304 50,000 18,796,392 7,663,170 500,000 8,421 – 100,000 2009 2008

(Rupees '000')

Market Treasury Bills and Pakistan Investment Bonds are held with the SBP and are eligible for rediscounting. Market Treasury Bills embody effective yields ranging from 11.76% to 12.47% (2008: 9.95% to 14.02%) with remaining maturities of 3 to 12 months and Pakistan Investment Bonds carry mark-up ranging from 8.84% to 12.88% (2008: 5.94% to 11.12%) per annum on semi-annual basis with remaining maturities of 1 to 14 years. Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities. This includes Rs. 100 million PIB outstanding as at December 31, 2009, which was pledged against borrowing from a Company in 2004. As the lender had failed to return the pledged PIB upon the maturity of the contract period, this amount is appearing as investment in PIBs with a corresponding amount appearing in Borrowings. No interest is accrued either as income from the PIB or as expense on this borrowing since the filing of the dispute between the Bank and the Company. In 2007, the SBP issued Defense Savings Certificates (DSCs) of Rs. 5.771 million against lost Foreign Exchange Bearer Certificates (FEBCs) to the Bank with 2 years restriction on disposal. These certificates carry interest rate of 6.5% per annum. Further, the Bank has purchased DSCs of Rs. 2.730 million carrying interest rate of 12.15% which are pledged as security. These Sukuk Bonds of Liberty Power Tech Limited carry mark-up rate of 3 months KIBOR + 300 bps and have an original maturity of 12 years.

10.2.1

10.3

10.4

38

NIB BANK LIMITED

ANNUAL REPORT 2009

Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
10.5 Particulars of investment in Cumulative Preference Shares Number of Shares held 2009 2008 625,000 1,875,000 2,500,000 – 625,000 1,875,000 2,500,000 5,000,000

Investee Pak Electron Limited (PEL) - Convertible Loaded Pak Electron Limited (PEL) - Non-Convertible Fazal Cloth Mills Limited Jamshoro Joint Venture Company Limited

Note 10.5.1 10.5.1 10.5.2 10.5.3

Total nominal value 2009 2008 (Rupees '000') 6,250 18,750 25,000 – 50,000 6,250 18,750 25,000 50,000 100,000

10.5.1 These preference shares carry fixed dividend of 9.5% on cumulative basis payable when and if declared by the Board of Directors. For redemption, the call option can be exercised by PEL up to 100% after three years of the issue date at 1% premium on the issue price. 10.5.2 These preference shares are redeemable upon the exercise of a call option by the company after completion of three years from the issue date. 10.5.3 These shares were redeemed during the year. 10.6 Particulars of investment in Listed Shares / Certificates Number of Shares / Certificates held 2009 2008 Available-for-sale Abbott Laboratories (Pakistan) Limited Allied Bank Limited Askari Bank Limited Attock Cement Pakistan Limited Awan Textile Mills Limited Bank AL Habib Limited BankIslami Pakistan Limited Berger Paints Pakistan Limited Brother Textile Mills Limited Lafarge Pakistan Cement Limited (formerly Pakistan Cement Limited) Century Paper & Board Mills Limited Clariant Pakistan Limited Samba Bank Limited (formerly Crescent Commercial Bank Limited) Crescent Steel & Allied Products Limited Dewan Farooq Motors Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Fauji Cement Company Limited Fauji Fertilizer Company Limited Fauji Fertilizer Bin Qasim Limited First Equity Modaraba First Fidelity Lease Modaraba 869,228 – 250,000 – 39,000 179,287 – 441,310 87 10,000 9 – – – 944,225 – – – – – 1 906,152 514,800 – 139,200 39,000 140,618 88,646 447,160 87 10,000 9 282,398 576,402 454,236 1,018,225 57,500 788,500 372,964 547,500 1,380,000 1 184,146 – 6,674 – 390 8,350 – 65,093 2 2,819 – – – – 30,184 – – – – – – 191,968 55,834 – 13,878 390 8,350 1,436 65,956 2 2,819 – 49,691 12,076 40,220 32,549 10,063 11,749 44,289 20,557 14,067 – Cost of Investment 2009 2008 (Rupees '000')

ANNUAL REPORT 2009

NIB BANK LIMITED

39

Notes to the Unconsolidated Financial Statements For the year ended December 31, 2009
Number of Shares / Certificates held 2009 2008 First Habib Bank Modaraba First National Bank Modaraba First Tawakal Modaraba The General Tyre and Rubber Company of Pakistan Limited Glamour Textile Mills Limited GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Habib Sugar Mills Limited Hira Textile Mills Limited The Hub Power Company Limited Ibrahim Fibres Limited ICI Pakistan Limited IGI Investment Bank Limited LTV Capital Modaraba KSB Pumps Company Limited Karam Ceramics Limited Kohinoor Energy Limited Millat Tractors Limited Mohib Textile Mills Limited mybank Limited Nagina Cotton Mills Limited National Bank of Pakistan New Jubilee Life Insurance Company Limited Nimir Industries Chemicals Limited Oil and Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan Refinery Limited Pakistan Tobacco Company Limited Premier Insurance Limited Prosperity Weaving Mills Limited Rupali Polyester Limited Saudi Pak Leasing Company Limited Security Investment Bank Limited Shakarganj Mills Limited Sitara Chemical Industries Limited Standard Chartered Leasing Limited Standard Chartered Modaraba Suraj Cotton Mills Limited Tariq Glass Industries Limited Tawakal Garment Limited Tri-Pack Films Limited Trust Modaraba Trust Securities & Brokerage Limited United Bank Limited Yousuf Weaving Mills Limited Total Listed Shares / Certificates – 699,751 446,774 – 200,000 655,735 *1,526,179 – – 6,415,477 300 – – *171,473 124,894 425,656 – 450,855 5 – – – – – – 227,600 – – – – – – – 10 – 112,120 – – – 2,021,904 150,000 – 100 – – 100 60,507 1,475,000 446,774 841,000 200,000 666,545 *1,356,604 *515,702 1,406,624 11,384,000 300 766,400 908,684 *171,473 136,772 426,156 100,000 699,000 5 1,146,750 187,100 92,100 175,000 4,938,759 1,000,000 237,600 550,000 3 159,700 *135,332 127,820 134,500 130,835 10 546,740 112,120 333,500 146,423 1,551,000 2,021,904 150,000 210,000 100 120,000 125,000 100

Cost of Investment 2009 2008 (Rupees '000') – 5,948 – – 5,016 126,164 89,140 – – 204,696 5 – – 5,573 22,549 8,300 – 142,442 – – – – – – – 75,759 – – – – – – – – – 37,672 – – – 61,466 – – 1 – – 2 1,082,391 520 12,538 – 46,155 5,016 128,243 89,140 22,134 11,183 389,216 5 150,713 13,403 5,573 27,163 8,310 3,180 151,264 – 27,465 2,900 18,130 12,346 19,755 119,653 79,088 127,224 – 24,833 5,453 1,598 5,447 1,852 – 17,564 37,672 3,669 1,838 74,293 61,466 – 42,693 1 1,020 16,570 2 2,342,182

40

NIB BANK LIMITED

ANNUAL REPORT 2009

01% ***9 – 2. 1.3 4.1 Central Depository Company of Pakistan Limited Chief Executive: Mr.217 – 64.044 5.000 1.928 66. 538.7.800 100 100 10.000 5.000 10.88% 100. 10. based on the net assets stated in the audited financial statements of investee company as at December 31. based on the net assets stated in the audited financial statements of investee company as at June 30.7.000 10.4 Value of investment.000 100. 10.7.8 Value of investment.000. 51.000 10.2 Value of investment.000 2. 10. Lazaro Campos 2008 Cost of Investment 2009 2008 (Rupees '000') 5. Nisar Ahmed SWIFT Chief Executive: Mr. based on the net assets stated in the audited financial statements of investee company as at June 30.7.000 50. Muhammad Hanif Jakhura Crescent Capital Management (Private) Limited Chief Executive: Mr.000 1. 2009 amounts to Rs.000 10.6 8.2 7.55% 5.7.Notes to the Unconsolidated Financial Statements For the year ended December 31.500 10. 2009 amounts to Rs. 2008 amounts to Rs.7. 2. Zaheer A. 10.280 10.1 Value of investment.200 **52.544 million.50% 2.680 10.97% **5. 2008 amounts to Rs. Shabahat Hussain Pakistan Textile City (Private) Limited Chief Executive: Mr. based on the net assets stated in the audited financial statements of investee company as at June 30. 10.3 This investment is fully provided in these unconsolidated financial statements. S.4 0.000.7. 10.000 509 1. 2008 amounts to Rs. 78.5 4.500.570 million. 2009 Note Percentage of holding Number of Shares held 2009 10.7 4.33% **79.320 million.7.000 10.477 million.5 Value of investment.044 568.7 Particulars of Unlisted Shares Pakistan Export Finance Guarantee Agency Limited Chief Executive: Syed Mohammad Zaeem 10.210 million. Hussain National Investment Trust Limited Chief Executive: Mr.26% 568.7. 10.7 This investment is fully provided in these unconsolidated financial statements.8 0. ANNUAL REPORT 2009 NIB BANK LIMITED 41 .500.7. 11. 2009 amounts to Rs.171 million.000 1.7. Mahmood Ahmed Equity Participation Fund Limited Chief Executive: Mr.000 5. based on the net assets stated in the audited financial statements of investee company as at June 30.680 5.7.000 5.087 **15. Tariq Iqbal Khan SunBiz (Private) Limited Chief Executive: Mr.000 1.7. based on the net assets stated in the audited financial statements of investee company as at December 31.7.7.7.000 50.6 Value of investment.65% 10.

385.055 8. 2009 Number of Certificates held 2009 2008 Amortized cost 2009 2008 (Rupees '000') 10.000 5.000 101.016 – 6.219 310.679 971.428 466.000 25.000 28.455.000 – 76.209 260.982 299.895 37.410 970.697 Cost of Investment 2009 2008 (Rupees '000') 32.000 74.167 2.000 6.191 – 15.580 29.439 246.000 17.911 100.975 – – – 20.994.000 – – – 200.700 29.958 206.Notes to the Unconsolidated Financial Statements For the year ended December 31.050 42.120 8.406 24.493 – 11.493 100.219 430.184 10.000 54.000 2.765 32.900 6.721 – 8.000 2.000 576.697 – 206.110 900.000 53.184 15.888 10.789.994 299.400 152.640 21.500 10.800 30.606 10.370.000 60.247 50.153 10.016 33.559 Number of Units / Certificates held 2009 2008 152.559 – 2.443 – 3.000 92.092 42 NIB BANK LIMITED ANNUAL REPORT 2009 .385.9 Particulars of investment in Unlisted Term Finance Certificates Avari Hotels Limited New Khan Transport Company (Private) Limited Power Holdings (Private) Limited 30.8 Particulars of investment in Listed Term Finance Certificates Investee Allied Bank Limited Askari Commercial Bank Limited Azgard Nine Limited Bank AL Habib Limited Engro Corporation (formerly Engro Chemicals Pakistan Limited) Escorts Investment Bank Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Soneri Bank Limited Telecard Limited Trust Investment Bank Limited United Bank Limited 6.277 20.167 2.067 10.432 50.000 60.574 1.092 587.000 557.946 164.410 – 11.000 6.100 203.000 50.074 – 29.997 784.393 133.000 20.000 8.000 3.000 227.370.400 20.553.119 29.000 74.679 – 1.402 11.000 6.888 10.911 – 92.649 82.000 227.000 76.305 10.10 Particulars of investment in Mutual Funds AKD Opportunity Fund Askari Sovereign Cash Fund First Dawood Mutual Fund First Habib Income Fund HBL Income Fund HBL Multi Asset Fund Lakson Money Market Fund Pakistan Strategic Allocation Fund JS Growth Fund (formerly UTP Growth Fund) JS Income Fund JS Large Capital Fund (formerly UTP Large Capital Fund) 587.000 2.525 15.901 53.

000 63.741 10.900 633.518 177.500 83.647 2008 Cost of Investment 2009 2008 (Rupees '000') 10.998 11.1 The Company has been wound up during the year.000 7. 10.963 724 4.12.544.000 10.11.16 10.476 510.858 10.Notes to the Unconsolidated Financial Statements For the year ended December 31.917 345.584. 2010 subject to certain regulatory approvals.1 299.500.500 83.704 ANNUAL REPORT 2009 NIB BANK LIMITED 43 .000 75.790.1 Subsequent to the year end.680 each All Term Finance Certificates are of Original Face Value of Rs.917 345.000 each 4.499.584.899.017 205.667 – 75.649 – 15.132.160 15.000 – 7. an entity cannot have an interest in two asset management companies.850 88.749.12 Particulars of investment in Subsidiaries PICIC Asset Management Company Limited PICIC Exchange Company (Private) Limited Financial and Management Services (Private) Limited 10.000.999.000 7.132.749.900 633.476 510.544. a purchase agreement has been signed between the Bank and the National Bank of Pakistan (NBP). 10 each. 100 each *** Shares of Face Value of Euro 2.850 724 4.999. Unless otherwise stated.500.649 20.000 7.160 15.000 75.11.998 11.499.539 1.000.993 41.500.1 6.000 75.995 299.000 65.000 7.000 – 7.858 10.993 41.186 67.500.000. 2009 Note Number of Shares / Units / Certificates 2009 10.500.000 – 30.130.017 – 20.12.500.186 67.11 Particulars of investment in Associates NAFA Cash Fund NAFA Government Securities Liquid Fund NAFA Islamic Multi Asset Fund NAFA Islamic Income Fund NAFA Multi Asset Fund NAFA Savings Plus Fund NAFA Stock Fund National Fullerton Asset Management Limited (held for sale) PICIC Energy Fund PICIC Growth Fund PICIC Insurance Limited PICIC Investment Fund – 1.000 6. The transaction is expected to be completed by March 31. * Shares / Modaraba Certificates of Face Value of Rs.000 7.539 2.097. 5.584.500. 5 each ** Shares / Modaraba Certificates of Face Value of Rs.462 – 63.995 4.500. by which the Bank is in the process of disinvesting its twenty seven percent holding in NAFA to NBP as. under the NBFC Regulations.000 – 3.000 – **88. holdings in modaraba certificates and ordinary shares are of Rs.130.

387 – – – 809.421 Rating 2008 (Rupees '000') Rating Unrated Unrated Unrated Unrated A/A1 * A+/A-1 * AA/A1+ * 44 NIB BANK LIMITED ANNUAL REPORT 2009 .304 Unrated Unrated Unrated Unrated 18.248) 1.13 Particulars of provision for diminution in value of investments Opening balance Charge for the year Reversals for the year .000 25.602) 901.Unlisted shares .138) (38.14 Particulars of Provision in respect of Type and Segment Available-for-sale securities .053.651 901.009 495.763 57.510 53.000 42.840 8.390 3.387 (30.559 558.501 205.697 421.940 6.000 8.377 422.Listed shares / Certificates / Units .791 699.at Market Value Federal Government Securities Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference shares Pak Electron Limited Fazal Cloth Mills Limited Jamshoro Joint Venture Company Limited Ordinary shares of Listed Companies Abbott Laboratories (Pakistan) Limited Allied Bank Limited Attock Cement Limited 105.Subsidiary Reversal due to sale Closing balance 10.15 Quality of Available-for-Sale Securities .969 123.426 (451.960 (1.000 25.379 5.469) (56.Unlisted Term Finance Certificates Associates .927) 603.Term Finance Certificates .721 500.373.301 54.006 809. 2009 2009 (Rupees '000') 10.Associates .000 50.589.245 25.Listed shares / Certificates / Units Subsidiaries .400 2.236 724 1.124 5.969 361.Notes to the Unconsolidated Financial Statements For the year ended December 31.053.791 901.200 16.368 * 81.000 A/A1 * 25.594.779.791 2008 2009 (Rupees '000') 10.Unlisted shares 497.

634 7.941 Rating AA/A1+ AA+/A1+ * * A+/A-1 * A+ * * * * * AA-/A-1 - 2008 (Rupees '000') 3.964 23.393 9.847 7.873 13.831 171.428 71.370 3.235 52.338 46.950 1.590 3.817 1.179 160.900 4.702 584 Rating AA/A1+ A-/A2 * * A/A-1 A+/A-1 * AA/A1+ * * * * AA-/A-1+ A/A1 A+/A-1 * * A+ * * * * * * * * A/A1 * AAA/A-1+ * * AAA/A-1+ * * * A * * BBB+/A-3 BBB+/A2 AA-/A-1 A+/A1 ANNUAL REPORT 2009 NIB BANK LIMITED 45 .047 5.352 55.898 7.976 2.425 13.825 5.617 37. 2009 2009 (Rupees '000') Askari Bank Limited Bank AL Habib Limited BankIslami Pakistan Limited Berger Paints (Pakistan) Limited Clariant Pakistan Limited Samba Bank Limited.246 379 3.990 24.628 183 2.736 2.925 93.569 1.652 24.Notes to the Unconsolidated Financial Statements For the year ended December 31.862 4.961 50.118 2.546 3.023 5.523 17.603 13.063 21.904 1.497 643 15.592 11. (formerly Crescent Commercial Bank Limited) Crescent Steel & Allied Products Limited Dewan Farooq Motors Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Fauji Cement Company Limited Fauji Fertilizer Bin Qasim Limited Fauji Fertilizer Company Limited First Equity Modaraba First Habib Bank Modaraba IGI Investment Bank Limited First National Bank Modaraba The General Tyres and Rubber Company of Pakistan Limited GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Habib Sugar Mills Limited Hira Textile Mills Limited The Hub Power Company Limited ICI Pakistan Limited KSB Pumps Company Limited Karam Ceramics Limited Kohinoor Energy Limited Millat Tractors Limited mybank Limited Nagina Cotton Mills Limited National Bank of Pakistan New Jubilee Life Insurance Company Limited Nimir Industries Chemical Limited Oil and Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan Tobacco Company Limited Premier Insurance Limited Prosperity Weaving Mills Limited Rupali Polyester Limited Saudi Pak Leasing Company Limited Shakarganj Mills Limited Sitara Chemicals Industries Limited Standard Chartered Leasing Limited 6.419 199.402 52.706 7.659 31.302 2.407 2.341 16.260 49.551 15.

195 Rating * 2008 (Rupees '000') 997 63.384 54.371 * * FR 4-STAR FR 4-STAR FR 3-STAR FR 5-STAR * FR 4-STAR 17.082 678 26.513 3.979 13.000 18.171 19.000 509 100 5.559 - AAAAAAA A+ * AAAA- 46 NIB BANK LIMITED ANNUAL REPORT 2009 . 2009 2009 (Rupees '000') Standard Chartered Modaraba Suraj Cotton Mills Limited Tariq Glass Industries Limited Tri-Pack Films Limited Trust Securities & Brokerage Limited United Bank Limited Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited Crescent Capital Management (Private) Limited Equity Participation Fund Limited National Investment Trust Limited Pakistan Export Finance Guarantee Agency Limited SunBiz (Private) Limited Pakistan Textile City (Private) Limited SWIFT Units / Certificates of Mutual Funds AKD Opportunity Fund Askari Sovereign Cash Fund First Dawood Mutual Fund First Habib Income Fund HBL Income Fund HBL Multi Asset Fund Pakistan Strategic Allocation Fund JS Growth Fund (formerly UTP Growth Fund) JS Income Fund Lakson Money Market Fund JS Large Capital Fund (formerly UTP Large Capital Fund) Term Finance Certificates Allied Bank Limited Askari Commercial Bank Limited Avari Hotels Limited Azgard Nine Limited Bank AL Habib Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Escorts Investment Bank Limited New Khan Transport Company (Private) Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Power Holdings (Private) Limited 16.348 320.126 20.278 52.143 19.680 1.314 8.000 50.013 1.730 29.789.614 Rating AA+/A1+ * * A+/A1 * AA+/A-1+ 5.665 40.029 15.000 23.000 2.Notes to the Unconsolidated Financial Statements For the year ended December 31.100 300.016 4.321 53.749 26.000 AAAAAAAAA AA A+ * AA+ A+ AA* 16.000 1.476 100.928 * * * AM2 * * * * 5.174 1.186 * FR 4-STAR * * * FR 4-STAR * FR 4-STAR 29.121 10.000 50.521 37.000 1.070 232.000 - * * * AM-DS * * * - 25.559 141.585 48.277 152.680 1.123 100.419 2.697 30.028 152.500 100 5.815 17.697 54.163 1.000 1.

773) (16.589 Rating BBB A - 2009 (Rupees '000') 2008 11.457) (232.322.894) (15.048.000. This impairment has been charged to the profit and loss account.987 97. Note 11.074 million) representing unrealized exchange gain.054 2. which has not been recognized as income and deferred in these unconsolidated financial statements.481 62.626 9. Accordingly the reversal has been credited to the profit and loss account.963 51.060 100. cash credits.427 97.066.2 Short term (for upto one year) Long term (for over one year) 61. ADVANCES Loans.5 Advances .818 34.322.584 424.423 100.344.322.in Pakistan Net investment in finance lease .2.322 412.963 20.979. 2009 2009 (Rupees '000') Telecard Limited Trust Investment Bank Limited United Bank Limited 146.679.123 3. Management has tested the investment in its subsidiary.445. 79. However.2 11.889 2.1 This includes a sum of Rs. these need to be tested for impairment.877.715.697 2.481 (16.406 90.757 95.000. management has concluded that a portion of the investment in associates is impaired.17.3 93. etc.140 24.481 11.Net of provision 11.4 11.256.1 In local currency In foreign currencies 11.in Pakistan Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan Advances . 79.074. Further.746.288) 80. in accordance with the policy of the Bank. if there is indication that such impairment may exist.849 527. 2008.542.Specific .General 11.000.061. as per IAS 36.16 As per BSD circular No.Gross Provision against non performing advances .074 million (2008: Rs.279 100.Notes to the Unconsolidated Financial Statements For the year ended December 31.193 2008 Rating BBB BBB AA (Rupees '000') 166. PICIC Asset Management Company Limited for impairment using a value in use calculation.478 38. investments in subsidiaries and associates are required to be reported separately and should be carried at cost.952.618 1.762.757 ANNUAL REPORT 2009 NIB BANK LIMITED 47 . running finance.1 11. .757 (15.390 *Rating not Available 10.663 97.021.729.515) (262.978.559. as stated in note 6.2. Particulars of advances 97.847.555.027 4.374.351) 84. The value in use calculation indicates that the value of the investment in the subsidiary exceeds the cost of investment resulting in reversal of the impairment loss recognized during the year ended December 31. 6 of 2007 dated September 6. 2007.

197.197.298 15. 2009 11.737 (299.233 3.298 13.516.316 3.526 million (2008: Rs.4.405 4.910 1.368. 48 NIB BANK LIMITED ANNUAL REPORT 2009 .417.643 2008 Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 2.3 Net Investment in Finance Lease 2009 Not later than one year Later than one and less than five years Over five years Total (Rupees '000') Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 2.849 – – – – – 2.735 13.746.510 – – – – – 3.248 million) due from an associated undertaking.766.374.010.339 650.542 (267.457 15.107.548) 3.658) 1.107.485 131.206) 4.123.249 855.552) 318.026 3.429.565.168 (98.1 Included in the Provision Required is an amount of Rs. 11.298 23.910 1.298 15.055 (466.Notes to the Unconsolidated Financial Statements For the year ended December 31.150.516.746.996 564.812 million) which have been placed under non-performing status as detailed below: 2009 Note Classified Advances Domestic Overseas Total Provision Required Domestic Overseas Total Provision Held Domestic Overseas Total (Rupees '000') Category of Classification Substandard Doubtful Loss 11.457 11.374.746.650 1.195 (31.215. 23.172 1. 22.374.841.679 218.4.868 4.123.4 Advances include Rs.910 1.910 1.516.923 15.374.226 860.061.249 – – – – 855.374.429. 5.526 15.1 4.249 – – – – 855.863) 2.923 855.711 992.116.415) 3.457 13.429. 1.526 – – – – 4.322 Minimum lease payments receivable includes a sum of Nil (2008: Rs.735 23.710 350.423.516.746.457 15.249 13.457.258.887 (367.360.625.496 million which represents provision in excess of the requirements of the State Bank of Pakistan.654 859.742.868 4.

515 Provision Required Domestic Overseas Total Provision Held Domestic Overseas Total Overseas Total (Rupees '000') 14.304. 11.978.5.641 (261.812 – – – – 5.742) (1. 232.589 (119.715.746.978.731 million in accordance with relaxation granted by the SBP to the Bank.948 14.222) 347. If the additional benefit had not been taken. 10 of 2009 dated October 20.773 – 262.979.088) (2.515 16.288 – 16.837.574 (3.773 59.248.457.560) (29.056 2.515 3.554.715.428. the provision against non performing loans and advances would have been higher by Rs.746.978. vide its BSD Circular No.088) (3.052 1.6 Amounts charged and written off during the year 11.757 – – – – 1.879) – – – 232. In addition to above mentioned FSV benefit.038. the Bank has also availed FSV benefit of Rs.751.457 General 262.894 15. the Bank has provided an amount of Rs.700) – 15.046 (Rupees '000') 613.639) 262.064.221 million.080 (3.683. 151.715.457 – 15.151.275 million.140 (261.715.757 14.948 22.700) – 15. 1.522) 8.499) – – (347.5 Particulars of provision against non-performing advances 2009 Note Opening balance Charge for the year Reversals Amounts written off from the opening balance 11.715.434) 524. 2009 2008 Classified Advances Domestic Category of Classification Substandard Doubtful Loss 5.248.894 – 232.898.256) (1.428.515 11.706 22.761 10. 1.384 (218.715.currency wise In local currency In foreign currencies 15.808 1. 2009 has made further amendments in the Prudential Regulations and allowed banks to avail the benefit of 40% of FSV of pledged stocks and mortgaged residential.813.957 10.978. 1.505 (218. 2008.199.351 16.715.457.289.515 – 16. commercial properties and benefit of 40% on industrial properties (land and buildings only) held as collateral against all non-performing loans for 3 years from the date of classification for calculating provisioning requirements with effect from September 30.248.351 8.911 115. The increase in profit as a result of taking this benefit is not available for the distribution of cash and stock dividends to shareholders.6 Transfer to / (from) Closing balance Specific 16.945.288 2008 General Total 3. The total value of the collateral on the basis of which the FSV benefit has been availed is over Rs. 232.653.052 1.163 (2.715. 2 dated January 27.979.979.248.757 1.269 million.094.Notes to the Unconsolidated Financial Statements For the year ended December 31.757 – – – – 1. 2009.040.248.706 16.515 The State Bank of Pakistan (SBP) vide its BSD Circular No.696) 554.773 10.554. 2. 2009 had allowed banks to avail the benefit of 30% of Forced Sale Value (FSV) of pledged stocks and mortgaged commercial and residential properties held as collateral against all non-performing loans for 3 years from the date of classification for calculating provisioning requirements with effect from December 31.746.052 1.248. 7 billion and management is confident that the actual realization will substantially exceed the FSV benefit availed.515 14.304.916. Against the FSV benefit of Rs.351 – 15.038. the net charge for provisions would have been higher by an amount of Rs.288 Specific 10.731 million and profit after tax would have been lower by Rs.515 262.754.490 million and profit after tax would have been lower by Rs.1 Particulars of provision against non-performing advances .706 16.038.151.894 Total 16.222) – 16.428. Had the benefit of the said new circulars not been availed by the Bank in the current year.812 16.681 (89.088) (2. Subsequently the SBP.052 1.742) (1.808 14.038.639 16.751.832.056 2.706 14.697 million.833.773 16.782.428.288 ANNUAL REPORT 2009 NIB BANK LIMITED 49 .457 232.

010.983) 305.426 55.882 2.321 2.264 1.702.380 12.077 2.590.141 83.236 16.248) – 7.1 12.7 208.909 (317.471 586.380 2.110 2008 11.8 Particulars of loans and advances to directors.1.255 (281.010.576 1.523 2.854 607.285 million) was written off as this represented long outstanding and unidentifiable items.511.205 595.398 1.2 164.2 Write offs of Rs.755 97.1 During the year. this write off does not affect the Bank's right to recover these debts from any customers.422 565. 2009 Note 11. associated companies etc.000 11. controlled firms.543) 1.1 Capital work in progress Civil works Equipment and electrical work Advances to suppliers and contractors Advance for computer software Others 62. 1962.000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance.110 210.416 760. OPERATING FIXED ASSETS Capital work in progress Property and equipment 12.301.950.033 2.310 1.840 11.686 (509.6.248 12.181) 1.382. 27. the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31. 500.114. However. executives or officers of the Bank or any of them either severally or jointly with any other persons Balance at the beginning of the year Additions during the year Loans granted during the year Repayments during the year Balance at the end of the year 1.313 1. 1. Debts due by directors.321 88.248 300.632 760.509.523.000 and above Write offs of below Rs. managed modarabas and other related parties Balance at the beginning of the year Loans granted during the year Repayments during the year Balance at the end of the year 305.143 44.544 3.7 Details of loan write offs of Rs.545 807.000 (605.590.030 million (2008: Rs.882 12. 500.6. 500. 50 NIB BANK LIMITED ANNUAL REPORT 2009 .7 11.595 63.1 Against provisions Directly charged to profit and loss account Debts due by subsidiary companies.6 Particulars of write offs: 2009 (Rupees '000') 1.442 67.800 2. 11.Notes to the Unconsolidated Financial Statements For the year ended December 31. an amount of Rs.926 764 164.252 3.941.511.347.840 11. 2009 is given in Annexure 1.

2. 2009 January Additions / (Write . KPT filed a Civil Suit seeking a declaration from the High Court of Sindh to the effect that the Plot had been validly reverted to KPT. office and computer equipment Vehicles Leasehold Improvements 12.822 422.678 22.124) 330.634 336.980 28.923) 35.551 98.358.048.343 1.641) – (1.950. The Bank filed a Civil Suit against CDGK before the High Court of Sindh in respect of the said unilateral cancellation of the allotment.2. the High Court of Sindh held that since allotment in favor of the Bank was valid therefore.178) – 1. 12.785. both the suits were decided in favor of the Bank.111) – (1.831 114.641) 24. also in 2000. Notes to the Unconsolidated Financial Statements For the year ended December 31.732 18.552 (6. possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by City District Government Karachi (“CDGK”) (formerly Karachi Development Authority). In 2000.812 165.298 (53. 9.903 7.252 – – 5% 5% 10% 20% & 33% 20% 20% Leasehold land Buildings on freehold land Buildings on leasehold land Furniture and fixtures Electrical.240 million in Block-6.290) (1.668 82. Karachi (the “Plot”).816 516.197 (5.617 1.375 477.955 (57.648 – 933 – 584.282 332.509 million (2008: Rs. Subsequently.921) – 241.3 This includes a plot of land costing Rs. Furthermore.852 841. the Bank is actively defending the case.2 Carrying amount of temporarily idle property is Rs.617 – – – – 336.249 (44.073 17.330 132.529 4.767 132.375.072.736.397 158.089 6.2.303 million).865 1.378) – – – 158. a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the land had been reverted to KPT. In the suit filed against CDGK. in the suit against KPT.108 (44.350 651. NIB BANK LIMITED 51 . 296.279 35.617 – – 336.618 17.522 142.472 16. Meanwhile.634 – – 15. 2009 12.808 2.372 842. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh.3 583.923) 4.12.064. KPT had no standing to claim that the land had been reverted back to KPT. 2009 31.2. The High Court of Sindh initially issued restraining orders against CDGK and KPT in the respective suits in respect of cancellation of the allotment of the Plot.623) 7.456 15. 2009 (Rupees '000') (Deletions) 31.842 million).456 – – 1.317.184 million (2008: Rs. whereas.652 1.563 25. in November 2008. Both the decisions of the High Court of Sindh are currently being challenged in two separate High Court Appeals by CDGK and KPT and the same are still pending.064.117 1. 526. 526.190 624. All the legal dues in respect of the Plot including Non-utilization Fees have been paid.174) (1.639 (17) – 957.937 (7.151 458.offs) December as at January year / (Write-offs) as at December December As at Accumulated For the % per annum DEPRECIATION Net Book Rate of Accumulated value as at Depreciation ANNUAL REPORT 2009 Property and Equipment Particulars Freehold land 12. Clifton. 2009 01.2 2009 C O S T As at Note 01.073 224. 605.583 – 161. At present. 2009 (on deletion) 31. the High Court of Sindh held that the action of cancellation of the allotment by CDGK was improper and void.541 (10) 465.735 234.1 Included in cost of property and equipment are fully depreciated items still in use having cost of Rs.866 (3. KDA Scheme-5. CDGK cancelled the allotment unilaterally based on certain building and construction restrictions.

445.939) 4.783) – 1.436.064.609) – 9.903 – – 583.973 (5.279 591.129) (6. 2008 01.826 (164) (220.617 – – 336.678 651.197) 315.529 490.144 (614) (208.335 28.548) 4.417 140.961 271.868) 82.773.448) 68.941.170 141.812 1.837 (368) 8.offs) December as at January year / (Write-offs) as at December December % As at Accumulated For the Net Book Rate of Accumulated value as at Depreciation DEPRECIATION NIB BANK LIMITED Property and Equipment Particulars Freehold land 1. 2009 52 2008 C O S T As at January 01.244 983.351) (4.397 104.941.686 21.644 (496.215 (355) (32. 2008 per annum Additions / (Write .372 128.980 – – 1.695) 842.397 158.317.694 4.953 321.617 – – – – 336.547) (11.544 – Vehicles ANNUAL REPORT 2009 .064. office and computer equipment Vehicles Leasehold Improvements Assets held under finance lease: 14.375.677 164.266 1.637 – 17.806 4.097) 498.717 2.822 450.276 (274.949) 224.921 (272.544 19.375.865 (106.073 232.326) (505.834) (21.617 1.375 1.645 – 132.283 383. 2008 31.167 315.073 10.092.072.364) 38.831 – – 158.266 7.276 (280.048.787.634 – – 15.385 (517) (45.334) (451.089 458.418 (111.169) (456.735 16.456 583.456 15.378 498.614) 199. 2008 (Rupees '000') (Deletions) 31.219 (81) (211.733 1.959) 35.974 420.418 (107. 2008 (on deletion) 31.831 – 2.819 4.634 336.048) (196.544 – – 5% 5% 10% 20% & 33% 20% 20% Leasehold land Buildings on freehold land Buildings on leasehold land Furniture and fixtures Electrical.317.375 (8.Notes to the Unconsolidated Financial Statements For the year ended December 31.336) 1.652 94.

920 6.4 Detail of disposal of property and equipment during the year Description Cost Accumulated depreciation Book value Sale proceeds Mode of disposal Particulars of buyer (Rupees '000') Computer Equipment Computer Equipment Vehicles Vehicles Vehicles Sub Total 9.382 489 117 885 542 560 2.326 111.593 Bid Bid Bid Mr.2.Ex Employee service rules Items individually having cost less than Rs. 2009 12. House # E-11.108 9. Block 8. Karachi Employee Mr. Sonia Shehryar .398 17.667 168.285 3. 1 million or net book value not exceeding Rs.462 16.25 million Computer Equipment 17.339 59 812 Vehicles 2.517 668 1.542 471 Leasehold improvements 18 10 8 4 Office equipment 661 653 8 176 Sub Total 2009 2008 28. Karachi Mr.861 280.623 2.657 729 615 263 27.378 1.478 879 632 29.657 1.897 53. Huzaifa Arif. House # 8/184 Liaquatabad. 0. Near Pankha Hotel Kabari Bazar Shershah. Muhammad Rafiq. Gulshan-e-Iqbal.726 – – 749 264 369 1.383 203.878 2.290 25.Notes to the Unconsolidated Financial Statements For the year ended December 31.448 ANNUAL REPORT 2009 NIB BANK LIMITED 53 . Mohammad Safdar Qureshi service rules Ex Employee Employee Ms.185 1. Karachi M/s Iqbal and Brothers.790 5.462 16.327 Furniture and fixtures 7.182 57.

236 94.040.743 28.149 204.09% 9.231 – – – – – – 67.040.222 6.903.185 26.December as at January for the for the (Write.261.495 24.471 60.09% 9.09% 20% 10% to 50% 13.453 1.as at December 01.C O S T -------------------------------------.638 60.221. 2009 year year offs) 31.489.664.453 124. 2009 Net Book Value as at December 31.056 639. 2009 54 2009 -------------------.331 million).828 1.637 – – – – (55) (55) 1.438 9.C O S T -------------------------------------.252 million (2008: Rs.824 34.271 9.as at December 01.253.000 339.566 61.259. 2008 offs) 31.651 298. 2008 01.116 173.838 – 226.583 142.116 767. INTANGIBLE ASSETS Particulars Goodwill Core Deposit Relationships Core Overdraft / Working Capital Loan Relationships Brand Computer Software 124.073 (185) 7.923.471 – 226.116 180.982 63.895 – – – 124.260 102. 57.495 308.259.045 7. 55. 2008 Net Book Value as at December 31.855 28.314 11.669 56.943.472 1. 2009 01.637 – – 1. 2009 offs) 31.060 128.157 5.313 – – – – 1.149 204.472 – – 25.626 213.595.062 – – 1.889 102.149 204.472 2.933 – – 2.261.236 94.453 25.489.743 28.075 1.933 586.824 19.472 – 113.261.000 – 43.040.643 20.412 74. 2008 year year offs) 31.073 (185) – – – – 124.489.595.784 24.222 1.Notes to the Unconsolidated Financial Statements For the year ended December 31.453 – – – – 25.566 61.December as at January for the for the (Write.489.AMORTIZATION / IMPAIRMENT------------------As at As at Accumulated Amortization Impairment Accumulated January Additions (Write.000 565.694 40. 2009 Rate of Amortization % per annum (Rupees '000') NIB BANK LIMITED 13.846.472 2.09% 20% 10% to 50% Core Deposit Relationships Core Overdraft / Working Capital Loan Relationships Brand ANNUAL REPORT 2009 Computer Software .083.1 Included in cost of computer software are fully amortized items still in use having cost of Rs.149 204.221.AMORTIZATION / IMPAIRMENT------------------As at As at Accumulated Amortization Impairment Accumulated January Additions (Write.895 – 28.261.453 25.116 180.521 26.472 2.000 339. 2008 Rate of Amortization % per annum Goodwill 2.880 86.040.286 40. 2008 Particulars (Rupees '000') -------------------.557 – – 586.149.

52% 10.Terminal growth rate used to extrapolate the cash flows beyond the budgeted period .52% 17.20% 10.Local inflation rates .Loan loss rates .50% 19.Notes to the Unconsolidated Financial Statements For the year ended December 31. Non-interest income Non-interest income is projected in line with management’s estimate of growth in advances and deposits.359 25.113 9. Loan loss rates These rates are based on the historical loss rate trend of the Bank in the respective units before merger and the results of the performance of the two CGUs since the launch of these businesses post merger.662.Non-interest income .35% 2008 The calculation of value in use for both CGUs is most sensitive to the following assumptions: ANNUAL REPORT 2009 NIB BANK LIMITED 55 . for impairment testing as follows: (Rupees '000') Consumer and Small Enterprises Group (CSEG) Small & Medium Enterprises and Commercial (SMEC) 13. Market Share Management assesses that the relative positions of each of the two CGUs to niche (untapped) market will grow over the budgeted period. using cash flow projections based on financial budgets by the management and covering a ten year period as management believes it will require a period of ten years to capture the niche market.Projections . 2009 13.472 The recoverable amounts of the CGUs have been determined based on value in use calculations. Cash flows beyond that ten year period have been extrapolated using declining growth rates.1 Key assumptions used in value in use calculations: 15.599.13% 17.Weighted average yield/cost of funds .Terminal value Terminal growth rate .2 Allocation of goodwill to CGUs: Goodwill acquired through acquisition with indefinite life has been allocated to two CGUs. The following post-tax rates are used by the Bank: 2009 Discount rates . which are also reportable segments. The cost of equity is calculated using the Capital Asset Pricing Model (CAPM).2.Discount rate . Terminal growth rate used to extrapolate the cash flows beyond the budgeted period Assumptions are based on published industry research.Market share Discount rate The discount rate reflects the management’s estimate of cost of equity applicable to the CGUs.261. Weighted average yield / cost of funds These are based on the actual yield / cost of funds of the recent past. 18.

the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.1 In 1987 and 1989. the Bank also assessed the recoverable amount of core overdraft / working capital loan relationships.Notes to the Unconsolidated Financial Statements For the year ended December 31. The management believes that any reasonable possible changes to the key assumptions on which the calculation of recoverable amount is based would not cause the carrying amount to exceed the recoverable amount.135. 2009 13.886 6. Ministry of Finance and Economic Affairs (Economic Affairs Division).511) (712. core deposit relationships and brand and determined that no impairment loss exists.502) 6.387 71.007) (33. 1987.314 1.590. Note 2009 2008 (Rupees '000') 14. in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers. the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan.2 14. 56 NIB BANK LIMITED ANNUAL REPORT 2009 .344.393.460) (650.2 Annual test for impairment Goodwill During the year.604) (1.530 412.933 281. CSEG and SMEC.482 472.2 The unrealized exchange losses of the Bank (formerly PICIC) as on April 21. through Office Memo 1(16)/50/DM/86 dated July 8. the Bank assessed the recoverable amount of the goodwill associated with both CGUs i.123. Intangibles In the current year.387 277.584) (1. The recoverable values of both CGUs exceed their carrying values and hence no impairment is deemed to exist.087 15. 1987 and 1(12)/50/DM/89 dated June 1. 14.604) (2.007) (33.228 6. by determining the value in use over a ten year period as these businesses are long term by nature.836.474.544) (6.e.338 1. 1989 respectively and.954 288.257) (521.426 14.310.606.198) 6.384 (328.539) (6.2. DEFERRED TAX ASSETS Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Deficit on revaluation of securities Gratuity Unused tax losses Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Intangibles including goodwill Fair valuation of subsidiaries and associates Unrealized exchange gains Unrealized exchange losses (218.533.939 461.583) – (571.239 8.465 9.1 14.762 2.495 14.

202 1.604) 6.179 (11.583) (571.622 3.591 (48.257) 50.394 77.482 472.662.954 288.592) – – – 6.980 281. 2008 Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Provision for leave encashment Deficit on revaluation of securities Gratuity Unused tax losses Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Unrealized exchange gains Unrealized exchange losses (552.604) – (95) 99.539) (6.939 461.465 109.802 Recognized in equity Balance as at December 31.007) (33.544) (6.949 (62.007) (33.395 (328.005 – – 146.201 – – 3.211 – – – 2.387 71.228 ANNUAL REPORT 2009 NIB BANK LIMITED 57 .482 472.024) – – (720) 1.344.801) (633.437 Recognized in profit and loss account 2.533.338 1. 2008 6.583) – (571.044 – – – 224.021) (7.460) (650.533.604) 6.748 2008 – – – – – – (205.043 15.745) (8.604) 2.511) (712.604 2.393.577 373.474.782) 62.228 6.584) (1.523.007) (33.933 281.774) – – – (205.314 1.530 412. 2009 14.732.606.545 383.136 – (26.387 26.Notes to the Unconsolidated Financial Statements For the year ended December 31.974 7.338 1.762 2.639) (638.257) (521. 2009 (Rupees '000') (213.351 – 277.495 14.087 15.606.789.592) (218.135.460) (650.344.239 (Rupees '000') – – – – 275.387 277.087 15.544) (6.358) (33.954 288.816.939 461. 2009 Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Deficit on revaluation of securities Gratuity Unused tax losses Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Intangibles including goodwill Fair valuation of subsidiaries and associates Unrealized exchange gains Unrealized exchange losses (328.3 Movement in temporary differences during the year: 2009 Balance as at January 01.387 – 277.001) (1.384 Balance as at January 01.239 Recognized in profit and loss account Recognized in equity Balance as at December 31.604) 6.

181.6 Foreign currencies Advances. Note 15.284 975.295.4 Insurance claim Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets .917 5. The management. to date no SRO has been issued to incorporate the agreed amendments to the Seventh Schedule. the deferred tax asset relating to provision for advances and off balance sheet items. OTHER ASSETS Income / mark-up accrued Local currency 15. 2009 and the FBR circular in this respect is not part of the Seventh Schedule. the above amendments do not provide for any transitional mechanism i. how and when the provision for bad debts disallowed upto December 31.net of provisions 15. Provisioning in excess of 1% of total advances would be allowed to be carried over to succeeding years. 2009 has made the above change effective for financial year ended on December 31. FBR vide its letter reference F. Further.net Non-banking assets acquired in satisfaction of claims 15.366 24. Management has carried out an exercise at year end and concluded that they would be able to get deduction of provisions for the year ended December 31.net Dividend receivable Receivable against sale of investments Receivable from Financial Management Services (Private) Limited Stationery and stamps on hand Advance for purchase of term finance certificates Assets in respect of Bangladesh 15.1 & 15. relating to the 1% capping as described above. The amount of bad debts classified as Substandard under the Prudential Regulations issued by the State Bank of Pakistan would not be allowed as an expense.663 36.626 755.2 Advance taxation . Accordingly.242 95.Notes to the Unconsolidated Financial Statements For the year ended December 31.4 4. 2008 amounting to Rs. recognized through the financial year ended December 31.380 – 299.5 58 NIB BANK LIMITED ANNUAL REPORT 2009 .225 6.756 37.826) 3. 4(1)ITP/2008-49 dated December 23. based on its tax consultants' opinion is of the view that the change to the Seventh Schedule.137 701.210 – 1.598) 6. 2009 that are in excess of 1% of total advances and has recognized a deferred tax asset of Rs.546 – 13. the Federal Board of Revenue (FBR) through Circular No.769 8.128.416) (82.406 million has been carried forward.832 425. 2009 14.428 – 13.416) (82.355 (342.932.439 2009 2008 (Rupees '000') 15.3 Unrealized gain on forward foreign exchange contracts . 2009 has informed ICAP that it has decided to insert a new Rule 8(a) in the Seventh Schedule to allow for amounts provided for in tax year 2008 and prior to the said tax year for doubtful debts which were neither claimed nor allowed as tax deductible in any year shall be allowed as a deduction in the tax year in which such doubtful debts are written off. However. 2001. 2009 has made significant amendments in the Seventh Schedule to the Income Tax Ordinance. 8 of 2009 dated September 25. During the year.4 Deferred tax asset The Finance Act. deposits.674 (342.732 547.879.261 463. is applicable from the financial year ended December 31. No. The deduction for provisions for doubtful and loss categories of advances and off balance sheet items is allowed upto a maximum of 1% of total advances. 5.219 23.505 611.703 31.410 249.048.409 105.409 122. advance rent and other prepayments 15.348 3. 792 million on such provisions. 2007 would be allowed as a deduction. 2008.000 425.993) (823. The Bank based on the advice of its tax consultants has treated the FBR commitment as effective. The matter was taken up by the Pakistan Banks Association (PBA) and the Institute of Chartered Accountants of Pakistan (ICAP) with the Federal Board of Revenue (FBR).e.993) (823.

including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh. Furthermore. consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1.642) (99. in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICIC’s assets in Bangladesh nor is it considered necessary to provide for any loss that may arise in respect of PICIC’s assets in Bangladesh.284 15. such allocated amounts.211 (117. Accordingly. while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh. following an agreement reached between PICIC and the Government of Pakistan during 1976.145 547. 667. 1971 were used. the Government has agreed that it would continue to provide the funds for servicing PICIC’s foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICIC’s own funds not exceeding Rs.3 15. Further. there have been certain modifications to the foreign currency advances relating to Bangladesh. 0. for purposes of conversion of foreign currency amounts.263) 823. Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities. and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated.5 ANNUAL REPORT 2009 NIB BANK LIMITED 59 . the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area. the parity rates ruling prior to August 15. However.893 40. 2009 15. generally speaking.841 – (20.510 701. deposits. such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area. 2009 was Rs. 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation.520 322. All the assets and liabilities as of November 30. 82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery. plant and machinery acquired by the Bank against advances and held for resale.4 194. Nil (2008: Rs. Subsequently.409 396. together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability.445 74. commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh. 2009 2008 (Rupees '000') 45. advance rent and other prepayments Advances Deposits Advance rent Prepayments Represents cost of land. The market value of the subject assets as of December 31.807 340.Notes to the Unconsolidated Financial Statements For the year ended December 31.025 million) in respect of associated undertakings.1 This includes Rs. 41.826 15.355 million (2008: Rs.2 Advances. 1974. 2009 2008 (Rupees '000') Particulars of provision against other assets Opening balance Charge for the year Reversals Write offs Closing balance 823. The Government of Pakistan.598 718.046 36.439 120.101 million).410 15.069) 823. did not accept any responsibility for PICIC’s assets in that area.826 19.

6 This includes a sum of Rs.7 6.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up ranging from 6.286 62. which has not been recognized as income and deferred in the financial statements.523. 100 million outstanding as at December 31.499. 17.00%) per annum maturing within seven years.332 62.665 162.90%) per annum maturing within two months.651.432.40% to 12.5 & 17.701 241.323.366 17.5.1 This includes Rs.941 41.409.4 17.365 17.574.366 17.523.50% to 7.706 9. 34.651.207 17.095 48.383.41% (2008: 10.secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long term finance for export oriented projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency 23.523. 34.361.6 These borrowings are subject to mark-up at rates ranging from 11.893 1.1 11.2 Details of borrowings . which was borrowed from a Company in 2004 against pledge of a PIB.332 162.50% (2008: 4.665 23.Notes to the Unconsolidated Financial Statements For the year ended December 31.033 42.00% to 14.831 17.100 2. BORROWINGS In Pakistan Outside Pakistan 62.233 11.084 1.700.989 1.033 42.90% to 6.314 74.50%) per annum maturing within six months.5. 60 NIB BANK LIMITED ANNUAL REPORT 2009 .332 62. As the lender had failed to return the pledged PIB upon the maturity of the contract period.933.286 23.00% to 5.099 million (2008: Rs.000 42. 2009 15.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 62.4 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark-up ranging from 4.000 241. No interest is accrued either as expense on this borrowing or as income from the PIB since the filing of the dispute between the Bank and the Company.366 17.365 200. this amount is appearing as a pending transaction with a corresponding amount appearing as investment in PIBs.365 23. Government securities have been given as collateral against these borrowings. Note 16.90% (2008: 13. BILLS PAYABLE In Pakistan Outside Pakistan 2009 2008 (Rupees '000') 1. 2009.60% to 12. 17.454. 17.351 2.376.3 17.481.651.665 23.17.50%) per annum maturing within four months.00% (2008: 6.099 million) representing unrealized exchange gain. as stated in note 6.216.701 241. in accordance with the policy of the Bank. 17.6 17.5 These borrowings are subject to mark-up at rates ranging from 11.481.409.

45.235 27.200 95.430 56. who have availed the German credit.912.032. SUB-ORDINATED LOANS Term Finance Certificates . 162.63% of the Issue Amount from the sixty-sixth month onwards March 5.997.978.586. the Bank is contending that any amount of principal and interest is payable to the GoP only when recovered from the related Sub-borrowers.805 19.15% (The Base Rate is defined as the average “Ask Side” rate of the six month Karachi Interbank Offered Rate (“KIBOR”) Subordination The TFCs are sub-ordinated to all other indebtedness of the Bank including deposits Issue Date March 5.156 993.286 million in respect of liabilities against German credit representing principal amount of loan and Rs.444 million as interest thereon till June 30.011 million (2008: Rs.940 5.616.327 1.1 Particulars of deposits In local currency In foreign currencies 85.02% of the Issue Amount for the first sixty months followed by six equal semi-annual installments of 16. 2009 17.Non remunerative Margin accounts Financial institutions Remunerative deposits Non-remunerative deposits 35.614 55. 4.769.167 18. This also includes unrealized exchange loss of Rs.067.011 million) which has been netted off against unrealized exchange gain (note 20) as it is payable when recovered from sub-borrowers.597 19.167 Floating (no floor. 2009 2008 (Rupees '000') 18.919.919.805 4. 2008 Issue Amount Rs.126 221.439 22.Quoted. 96. no cap) rate of return at Base Rate +1. However.598.460 9.814 93.909 7.7 The Government of Pakistan (GoP) has claimed an amount of Rs.896 93. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts .250 104. 96. who have availed the related German credit.000 million Rating Tenor Redemption A+ (A plus) 8 years from the Issue Date Ten equal semi-annual installments of 0.Notes to the Unconsolidated Financial Statements For the year ended December 31.718. 2016 The Bank can also exercise a Call Option or a Partial Call Option after obtaining written approval from the State Bank of Pakistan at any time after a period of sixty months from the Issue Date Maturity Call Option ANNUAL REPORT 2009 NIB BANK LIMITED 61 .064.600 3. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 20). 2006.940.999.586.578.707 104.942.044 23.521. Unsecured Mark-up 3.

000 73.000 50.000 Ordinary shares of Rs.541 21.417 2.189 2.271 20.886 414.752 45.net Security and other deposits Payable to IBRD .883.574 13.417 4.441 68.415.244 40.278.026 – 488.264 2.027 7.271 62 NIB BANK LIMITED ANNUAL REPORT 2009 .776 68.727.648.294 13.244 28.Managed Fund Payable against purchase of investments Payable to Workers Welfare Fund Payable to defined benefit plan Security deposits against lease Locker claims payable Others 1.789.122 1.437.000.452 4.036 – 31.043.741 21.027 7.142 11.731 992.890. 10 each 3.009 34.000.Notes to the Unconsolidated Financial Statements For the year ended December 31.076 2.902.843. 10 each (Rupees '000') 50.220 7.5 21.000.000 5.155 154. OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned income on inland bills Accrued expenses Insurance premium payable Advance from lessees Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized exchange loss .329 45.659 764.648.078.699 68.095 310.575.000. subscribed and paid up Fully paid up ordinary shares of Rs.824.026 5.541.095 72.000.902.461 65.824.2 Issued.000 21.659 764.266 4.056.473 38.883 103.076 Fully paid in cash Issued for consideration other than cash (under schemes of amalgamation) 32.437.789.317 474.790 2009 2008 (Rupees '000') 34.000.727. 2009 Note 20.000 191.220 – – 57. SHARE CAPITAL 1.057 1.1 Authorized 2009 2008 2009 2008 (Number of Shares) 5.

000.782) (949.795.367 88.842.759 641. 10 each At the beginning of the year Issued during the year for cash At the end of the year 2.547) (157.841 75.770) 417 24.4 Other contingencies Claims against the Bank not acknowledged as debts 469.2.446 1.869.275 23.992) (457.425 (2008: 1.156 382.175 4.809 873.2 Reconciliation of number of ordinary shares of Rs.317 2.643.666 5. Limited holds 2.035 4.471) (33.Net Deficit on revaluation of available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Mutual Funds Investment in Shares of Listed Companies Related deferred tax asset (20.475 3.233.273 23.027) 23.798.911.495 (115.256) (10.464 140.876.146) (1.831 (16.164) 2.770) ordinary shares.727. 2009 21.353.308.849 (186.696 – ANNUAL REPORT 2009 NIB BANK LIMITED 63 .459.310 7.841 52.813.2 Transaction-related contingent liabilities / commitments Guarantees given in favor of: Government Others 4.1 CONTINGENCIES AND COMMITMENTS Direct credit substitutes Contingent liability in respect of guarantees given favoring: Government Others 222.000 297.087 (1.744.843.000 4.076 2009 (Rupees '000') 22.076 1. DEFICIT ON REVALUATION OF ASSETS .076 2008 23.200. 23.796.864 7.930.043.995. 2009 2008 (Number of Shares) 21.251) 277.585.075) (151.727.843.727.522) 71.211 23.5 Commitments in respect of forward lending Commitments to extend credit 294.098 929.1 The holding company Bugis Investments (Mauritius) Pte.Notes to the Unconsolidated Financial Statements For the year ended December 31.176 11.2.3 Trade-related contingent liabilities Letters of credit Acceptances 6.201.716.

324 15.914 284.400 2.604 35.403.363 25.872.514 21.998 108. 2009 2008 (Rupees '000') 23.357 8.023 465.708.742 23.747 173.066.308 12.691 2008 (Rupees '000') 64 NIB BANK LIMITED ANNUAL REPORT 2009 .098.282. 2009 24.609.6 Commitments in respect of forward exchange contracts Purchase Sale 54.7 Commitments for the acquisition of operating fixed assets 205.495 304.816 11. disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC) and from tax years 2004 through 2007 for Ex-PICIC Commercial Bank Limited (Ex-PCBL).778 33. Management is confident that the eventual outcome of the cases will be in favor of the Bank.434 23.642.Notes to the Unconsolidated Financial Statements For the year ended December 31.625. These disallowances may result in additional tax aggregating to Rs. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains.521 59. 2007. which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law.321 3. The management of the Bank intends to file an appeal against the Income Tax Appellate Tribunal Order in respect of Ex-PCBL for tax years 2004 through 2007.859.687 26.740 1.868.252 991.916 462.016.912 10.680 1.8 The returns of income of NIB Bank Limited and other merged entities have been filed up to the tax year 2008 relevant to the financial year ended December 31.051.527 432.104 million respectively.022 652.003.588 18. 1.277 1. MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings Others 8.201. The appeals filed in respect of Ex-PICIC are pending before the Commissioner Income Tax (Appeals).023. 2009 The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above.694.600 2.436 54.272.679.176 609.891 75.799. MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On investments in: Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money lending 12.275 40.

596 281.633 6.367.140 4. insurance. allowances.575 130. electricity. conveyance and vehicles running Security services Fixed assets written off Others 28.736 17.288 712 500 3.140 465. Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors' fees.029 30.716 15.062 54 43.600 598.300 750 1.181 433 – 194.336 98.298 308.879 73.553 3. Legal and professional charges Communication Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscriptions Auditor's remuneration Depreciation Amortization Donations Traveling.4 2.777 853.822 104.901 116. taxes. etc.375 615 8.125 8.786 12.789 114.324 75.228 86.983 10.585 122.661 58.668 154.460 46.498 2.2 28. 2009 Note 26.312 73.418 298.335 34.262 20.503 189. OTHER INCOME Gain on disposal of property and equipment Service charges Rent 1. ADMINISTRATIVE EXPENSES Salaries.100 1.007 18.723 65.151 6.094 – 172.800 27.310 2009 2008 (Rupees '000') 28.307 3.815 28.837 3.345.845 990 10.433.602 3.716 62.335 498.558 22.301 1.075 – 55.891 118. allowances and other expenses Brokerage and commission Rent.282 48.627 920.244 283.986 83.357 276.1 12.841 1. GAIN ON SALE OF SECURITIES Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Ordinary Shares of Listed Companies Units of Mutual Funds Others 158.1 Auditors' remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses 4.388.983 28. ANNUAL REPORT 2009 NIB BANK LIMITED 65 .2 13 28.122 34.2 This was paid to The Citizens Foundation in which none of the Directors or their spouses have any interest.647 5.441 74.747 227. etc.Notes to the Unconsolidated Financial Statements For the year ended December 31.

432) (122.036) (272.1 Relationship between tax expense and accounting profit Accounting Profit / (loss) for the year Tax on income @ 35% Effect of permanent differences Adjustment in respect of tax at reduced rates Others Minimum tax Tax charge for the year 644.947 (Numbers) 33.890 65 4.997.071 225.955 1.783 12.097) 59.977) – – (3.849.843.843 10.058 9.523.834.048 4.771 – (146.271 2008 30.425 (8.17 (7.977) (10.148.63) 32.126 128 5.211) 31.335 (123.683. '000') Weighted average number of ordinary shares outstanding during the year (in '000') Earnings / (Loss) per share . STAFF STRENGTH Permanent Temporary / on contractual basis Bank's own staff strength at the end of the year Outsourced Total staff strength 4.890) (3.043. BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Profit / (Loss) after taxation (Rs.355.727 0.656 6.104 793. 2009 2009 29.275 3.211) 30.950) 99.910 66 NIB BANK LIMITED ANNUAL REPORT 2009 .523.385 5.886 – 305.518.basic / diluted (Rupees) 691.748) (46. TAXATION For the year Current Prior years Deferred 99.187) (91.254 1.211) (3.674 265. OTHER CHARGES Penalties imposed by the State Bank of Pakistan Others (Rupees '000') 1. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks (net of provision) 8.474.430 6.Notes to the Unconsolidated Financial Statements For the year ended December 31.679) 2.727 (2.771 (46.261) 20.523.597 325.164 – (3.

The benefit is equal to one month's last drawn basic salary of each year of confirmed service.834 (303) (1.693 – – 23. The actuarial valuation was carried out for the year ended December 31.859 23.651 – (1.634) (32.482 – 23.235 58.858 32.453 – 29 23.109 4.482 – 23.Withdrawal rate Note 34.634 57.808 – 2.731 – 73.261 7.771) 73.057 17.634) (32.859 – 32.577) 76.631) 12.859 11.Notes to the Unconsolidated Financial Statements For the year ended December 31. subject to a minimum of five years of service.453 (785) 57.376 – – 12. 2009 34.482 2008 12% 15% 11% 14% Based on LIC 1975-79 Ultimate Mortality table Heavy Age .631) 9.482 13.506 (76.901 829 (2.453 – 23.859 – 32.963 – 58.6 81.919 (1. 34.962 (829) 6.Wise withdrawal rates 2009 2008 2007 (Rupees '000') 2006 2005 ANNUAL REPORT 2009 NIB BANK LIMITED 67 .901 10.128) 23.128) 22.506 (76.963 10.377 11.822 10.Salary increase rate .630) 17.128) 12.317 – 1.109 – 22.630 (3.Mortality rate .731 – 73.631) 11.326 44.357 – 1.057 – 57.922 – 3.398 – (1.056) 73.822 – (271) (19.Valuation discount rate .647 9.5 Movement in balance (receivable) / payable Opening balance Expense recognized Software project expense capitalized Benefits paid to outgoing members Assumed on amalgamation Closing balance 34.109 (823) 23.919 – 33.647 – – 44.559 33.057 33.749) 22.2 Principal actuarial assumptions The actuarial valuation is carried out periodically.731 (32.859 10.057 32.892 5.502 – (7.3 Reconciliation of (receivable from) / payable to defined benefit plan Present value of defined benefit obligations Unrecognized prior service cost Net actuarial gains not recognized Assumed on amalgamation Net liability / (receivable) 34.919 3.502 4.482 9.751 (281) (1.377 – – 32.789 12. 2009 using the "Projected Unit Credit Method".536) 57.693 34. DEFINED BENEFIT PLAN 34.4 (Income) / charge for defined benefit plan Current service cost Software project expense capitalized Interest cost Actuarial (gain) recognized Amortization of prior service cost 34.1 The benefits under the gratuity scheme are payable in lump sum on retirement at the age of 60 years or earlier cessation of services. The main assumptions used for actuarial valuation are as follows:Gratuity 2009 .731 58.963 1.6 Summary of valuation results for the current and previous periods Present value of defined benefit obligations Fair value of plan assets Deficit Experience (gain) / loss on obligation 81.502 – 81.

458 1 1.644 1.036 47.Notes to the Unconsolidated Financial Statements For the year ended December 31.127 2.010. 2009 2009 34.188 40. 68 NIB BANK LIMITED ANNUAL REPORT 2009 .398 (2.848 505 446 Number of persons 1 The President / Chief Executive is also provided with free use of a Bank maintained car.502 33.919 10.056) 4.864 – – – – – – 1.7 Reconciliation of present value of defined benefit obligations Opening balance Current service cost Interest cost Benefits paid Actuarial loss on obligations Closing balance 34.483 48. DEFINED CONTRIBUTION PLAN The Bank has established a provident fund scheme administered by the Board of Trustees for all permanent employees. management estimates that the charge in respect of the defined benefit plan for the year ending December 31.995 – 710.922 3.199 8.419 2. security arrangements and reimbursement of household utilities.175 – 33.876 171.742 1.864 4 934 – – – – – – 934 3 – 647.742 6.235 81.238 44.036 7.963 13.963 (Rupees '000') Fees Managerial remuneration Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Others – 17. 2010 would be Rs. Directors fees are paid to non executive directors only.8 Expected contribution for the next one year The Bank provides for gratuity as per the actuary's expected charge for the next one year.792 974.097 1.962 6.057 13.605 160.834 (271) 10.433 1. 24. Based on actuarial advice. as per the terms of his employment.559 58.036 2.742 31.995 48. 36.792 45.272 45. COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Executive 2009 2008 Directors 2009 2008 Executives 2009 2008 2008 (Rupees '000') 58. travel and medical insurance.365 858 2. 35. Equal monthly contributions are made to the fund by both the Bank and the employees @ 10% of basic salary.727 million.

651.919.000 5.021.931.007.194 37.574. the fair value of other on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced.275 3.475.183 138.084 23.193 2.200 5.355.919.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange 54.459.891 39.683. between knowledgeable willing parties in an arm’s length transaction. FAIR VALUE OF FINANCIAL INSTRUMENTS 37.887 61.416 141.971 170.416 139.217 165.783 5.971 169.681.823 80.021.970.275 3.386 1.683.348.783 5. ANNUAL REPORT 2009 NIB BANK LIMITED 69 .292 40.808.183 138.459.406 5.834.162 35.621 33. 2009 37. staff loans and fixed term deposits of over one year.016.061.586.559 9.997. fixed term advances of over one year.998 53.167 3. Fair values of held-to-maturity securities.355.Notes to the Unconsolidated Financial Statements For the year ended December 31.301.977 84.730 80. fixed term advances of over one year.000 9.366 104.999.436 54.503.167 3.344.931.621 35.677.299 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 1.292. The fair value of unquoted subsidiaries.600 3.365 93.432.823.754.805 3.151 54.843 12. staff loans and fixed term deposits of over one year cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.352.1 On-balance sheet financial instruments 2009 Book value Fair value (Rupees '000') 2008 Book value Fair value Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets 8.207 62.658.217 165.193 2.651.104 793.681.232.432.352. or a liability settled.625.000 1.228.574.792 3.366 104. Fair value of unquoted equity securities have been stated at lower of cost and Net Assets Value.344.084 23.470 1.843 12. Except for investment in unquoted subsidiaries.805 3.834.523.406 5.688.432.887 62.586.098.800 8.313.176.604 35.104 793.207 62.609.808.365 93.523. sub-ordinated loans and investment in quoted associates have been stated at market values.907 Fair value is the amount for which an asset could be exchanged.237 84.301.049.

832.43% 1.632.284 15.986 (447.629.145 47. The segment analysis with respect to business activity is as follows: For the Year ended December 31.721 11. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Bank's President / Chief Executive.618 1.35% 1.439.530 313.622 36.850 212.357 6. 2009 Corporate and Investment Banking Small & Medium Enterprises and Commercial Consumer and Small Treasury Enterprises (Rupees '000') Head Office / Other *Adjustments Net Interest Income Non Funded Income Net Interest and non markup Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%) 169.705 754.Notes to the Unconsolidated Financial Statements For the year ended December 31.889.484 34.984.393 479.483 179.655 82.903.090.152.180.114.212) – (1.481) – – (30.481) (30.495.16% 11.489.499 75.818. 2008 Segment Assets (Gross) Segment Non Performing Loans Segment Provision (including general provisions) Segment Assets (Net) Segment Liabilities 48.113.110.24% (661.565 14.104.487 92.674.225.806 4.437) (0.720 3.021.113. 2008 Net Interest Income Non Funded Income Net Interest and non markup Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%) 430.139) 27.627.319 (30.837.653.619 7.824 2.300.212) 1. with appropriate transfer pricing.465 92.250 94.204 1.103. 2009 Segment Assets (Gross) Segment Non Performing Loans Segment Provision (including general provisions) Segment Assets (Net) Segment Liabilities 60.21.957 39.383) (3.249 1.726.874 2.785 195.795 – – 36.03% 4.050.487 7.869.43%) 7.690 658.480.098.198 3.596 211. Transactions between reportable segments are carried out on an arms length basis.573 50.892.952 178.986 – 4.087.248) As at December 31. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Bank is organized into reportable segments as disclosed in note 6.413 – 1.465 315.670) – – – – – – – – – N/A N/A For the Year ended December 31.22% 2.697 540.507.727. The adjustments column eliminates intersegment lending and borrowing.180) (0.837.248) – – (47.869 (1.036 30.999 460.649 (589.481 4.737) 72.050.083 (344.431.105 (4.481) * The respective segment assets and liabilities incorporate intersegment lending and borrowing.722 7.530 2.820 6.413 (249.745) (1.72% 410.704.881 1.574 2.60% 10.810 73.418.936 685.113.865.002 268.93%) 6.688 12.915 – – 75.865.371.300.484 0.756 44.644.832. 70 NIB BANK LIMITED ANNUAL REPORT 2009 .33%) 8.124 2.291) (10.949.791 815.744 80.34%) 7.239 329.976 1.869 – 2.439.190.507.448 (47.582 (600.29% 9.795 34.731. Segment performance is reviewed on the basis of various factors including profit before taxation.105 – 7.489.333 787.830 63.774 44.578) 817.364.323.632 3.054 81.875 324.873 51.785.764.384.614.142 1.662 (1.660 1.005.098.248) (47.150 1.812 382.453.864.052 6.572 626.341 4.520 17.294 575.360.725 32.88%) 10.088) (16.016.050.648 (5.095 293.599 61.131) – – – – – – – – – N/A N/A As at December 31.006.033 79.1.628.507.510 48.903.85% 428.805 1.217.978 2.013.915 71.226.648 – 6. 2009 38.58% (503.215.

747) 34.633 44.704 – – 2.790.135.080.824.298 (86.545 807.704 1.880) 66.170.534 189.344 2.343 1.698) 7.095 (532.741 4.427) 322. RELATED PARTY TRANSACTIONS The Bank has related party transactions with its holding company (refer note 1).248) 7.702 – (39. ANNUAL REPORT 2009 Holding company 2009 (Rupees '000') The detail of transactions with related parties is given below: Subsidiaries 2009 2008 2009 2008 2009 2008 2009 Associates Key Management Personnel Other related parties 2008 2008 39.459 – (216.691 296 – – – – Sub-ordinated loans At the end of the year – – – – – – 49.275 92.968 Advances At the beginning of the year Addition during the year Repaid during the year At the end of the year Deposits At the beginning of the year Deposits during the year Exchange difference Withdrawal during the year At the end of the year Investment in shares / mutual funds .295 – – – Balances outstanding as at the year end – – – – – – – 305.518 – – – 4. associated undertakings (refer note 10.083 – – (5.970 – 71 .275 9. subsidiaries (refer note 10.032) 788.809 – 1.953.248 300.927 788.647 45. Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties.647 60.199 84.272 5.217) 146.425 40.647 43.089 22.848 (24.995 510.987 4.823) 510.790.704 – (205.024 – (147.120) (4.790.793.906 104.429.686 (509.257 173.809 1.376 (1.248 172.078 – (31.682 NIB BANK LIMITED – – – – Insurance premium payable At the end of the year – – 4.000 (605.11).012.963) 4.083 101.344 32.783) 34.773.305 – – – – – 4.598.097.199 191.377 18 (1.968 – (7.899.782 4.000 (258.950.822) 184.224.cost At the beginning of the year Investments made during the year Investments sold / liquidated during the year At the end of the year Notes to the Unconsolidated Financial Statements For the year ended December 31.207 – – – – Payables At the end of the year 2.861 191.534 – – – – – – – – – – – 305.000 – 2.129) 66.563 946 – – – – – – 269 – Brokerage payable At the end of the year – – – – – – – – 161 136 Payable to Directors At the end of the year – – – – – – – – – 5.156) 107.968 – – 191. 2009 Receivables At the end of the year 133 133 698 301 – – – – – – Insurance claim receivable At the end of the year – – – – 84.811) 148.983) 104. employee benefit plans (refer note 34) and its key management personnel.39.10).052.584.097.136.604 1.343 1.146 264.765 (4.1 – – – – 66.656) – – – – – – – – 264.467 2.

797 – – – 4.864 – Mark-up / return / interest earned on advances – 46.963 198.163 90.562 117.543 – – – – – 241 8.031 7. 2009 72 Holding company 2009 (Rupees '000') Subsidiaries 2009 2008 2009 2008 2009 2008 2009 2008 Associates Key Management Personnel Other related parties 2008 NIB BANK LIMITED – 8.383 have been purchased from PICIC Exchange Company (Private) Limited ANNUAL REPORT 2009 .744 39.348 1.095 – – – – – – Dividend income from shares / mutual funds Brokerage expense Directors remuneration Directors travelling expense – – – Insurance premium expense – – – – 118.969 4.350 61.740 – 149.207 10.653 Remuneration to key management personnel Contribution to Provident Fund Mark-up expense on sub-ordinated loans – Operating fixed assets amounting to Rs.040 17.838 5.395 66. 171.196 750.937 934 Mark-up / return / interest expensed on deposits – – – – 4.874 2.531 1.840 466 – – – – 39.049 5.501 – – 6.493 – 98.2 Income / Expense for the year – – 99.Notes to the Unconsolidated Financial Statements For the year ended December 31.000 – – – – – – – – – – – – – – – – – – 205.694 – – – – – – – – – – – – 1.

997.618 12. revaluation reserves (subject to 45% of balance in revaluation reserve) and general provision for loan losses (subject to 1.487 199. comprising of 4.2.618 – 218.999.860.272 28.2.757. 2009.276 (7.437.2 Capital Structure The Bank’s regulatory capital base comprises of: (a) Tier I capital which includes share capital.000 80.Notes to the Unconsolidated Financial Statements For the year ended December 31.271 8.600 million represents unsecured TFCs of the Bank.773 40.444 – 20. 3.246.600 232. 07 dated April 15.643. 40. 2009 40.25% of Risk Weighted Assets).271 million as at December 31. subscribed and paid-up capital of the Bank was Rs.1 61.894 3. 2006.307. 10 each.043 3. reserves and accumulated losses / unappropriated profit.1 24.25% of Total Risk Weighted Assets) Less: Other deductions (represents 50% of investment in subsidiary and other significant associates) Total Tier II Capital Eligible Tier III Capital Total Regulatory Capital Base (a) 40. The Bank has adopted the Standardized Approach for Credit and Market Risk and the Basic Indicator Approach for Operational Risk.1 61.050 16.657 186.727 million shares of Rs.749 40.294 – 18.283) 41.913.535. 40. The issued. Details of the Bank's regulatory capital are as under: Note Tier I Capital Fully paid-up capital Share premium Share deposit money Statutory and general reserves Accumulated loss Less: Goodwill and intangibles Deficit on account of revaluation of investments held as available-for-sale Other deductions (represents 50% of investment in subsidiary and other significant associates) Total Tier I Capital Tier II Capital Sub-ordinated Debt (upto 50% of total Tier I Capital) General Provision for loan losses (subject to 1.2. 2009. 40.062.522 40. (b) Tier II capital which consists of sub-ordinated loans (subject to 50% of eligible Tier I capital).679 4.000.679 14.251 199. 8 dated June 27.258.1 CAPITAL-ASSESSMENT AND ADEQUACY BASEL II SPECIFIC Scope of Applications Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines given by the SBP through BSD Circular No.893) 41.006.246.437.997.437.169.704. The current requirement for CAR is 10% as per BSD Circular No. The amount raised through the issue contributed towards the Bank's Tier II capital for Capital Adequacy Ratio requirements as per the guidelines of the SBP.043.050 4.672 2009 2008 (Rupees '000') ANNUAL REPORT 2009 NIB BANK LIMITED 73 . The sub-ordinated loans amounting to Rs.200 262.043 24.993 1.271 8.585.976.066 (7.

3 Capital Adequacy The purpose of capital management at the Bank is to ensure efficient utilization of capital in relation to business requirements. growth. 2009 was 19. The Bank has complied with all regulatory capital requirements during the year.584. the Bank may issue capital / Tier II securities. Cash and near Cash collateral includes Government of Pakistan securities.445 million) arising from the acquisition of PICIC and PCBL. regulatory requirements and the risk profile of its activities. 2009. Banking operations are categorized as either Trading book or Banking book. shares listed on the stock exchanges. The above exemptions have been granted upto December 31. Collateral. In order to maintain or adjust the capital structure.090 million). 2. 2. shareholders' returns and expectations. lien on deposits).527. risk appetite.2. if any. The Bank manages its capital structure and makes adjustments to it in the light of changes in economic conditions. 4. 2009 40. and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to the Bank's On and Off-balance sheet exposures.082.Notes to the Unconsolidated Financial Statements For the year ended December 31. The Bank's capital adequacy ratio as at December 31.614 million (2008: Rs. and (ii) Investment in PICIC Asset Management Company Limited of Rs.1 The SBP has granted the Bank exemption from deduction of the following from Tier I and Tier II capital.356. Risk weights notified are applied to Net Adjusted Exposure. 4. The Bank ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis. 74 NIB BANK LIMITED ANNUAL REPORT 2009 .58% compared to the minimum regulatory requirement of 10%.017 million (2008: Rs. 40. cash and cash equivalents (deposits / margins. is used as an outflow adjustment. (i) Intangible assets (other than Goodwill and Computer software) amounting to Rs.

531 53.204 25.603 6.114.732 4.921 903.540 19.338 8.633.540 2008 (Rupees '000') Capital Adequacy Ratio Total eligible regulatory capital held Total Risk Weighted Assets Capital Adequacy Ratio (a) / (b) 20.165.088 97.775.760 90.58% 18.754.080 3.437.068 4.860 3.744.201 5.338.027 66.637 333.313 7.253 Operational Risk TOTAL (b) 1. plant and equipment and all other fixed assets Other assets Off balance sheet market related exposures Market Risk Interest Rate Risk Foreign Exchange Risk 3.218 260.640 61.476 9.672 30.037.230 2.928 10.556 37.754 19.454 918 480.342.790 – 29.027.252 86.165.134 45.976.526 11.487 105.924 732.258.113.997 678.395.549 1.750 10.440 54.269.374 75.650 434.218 607.702.754 2009 33.53% ANNUAL REPORT 2009 NIB BANK LIMITED 75 .896.496 105.274.137.867 9.071.499 4.743 750.002.399 7.269 96.923 200.717 302.426 2.686 381.993.276.522 34.894.754.043 97.959.009.693.249 989.475 3. 2009 The capital requirements for the Bank as per the major risk categories is indicated below: Capital Requirements 2009 2008 Risk Weighted Assets 2009 2008 (Rupees '000') Credit Risk Corporate Sovereign Retail Banks Equity investments Public sector entities Past due loans Claims against residential mortgage Investments in premises.240 799.472 427.913 4.Notes to the Unconsolidated Financial Statements For the year ended December 31.086 311.632 4.565.455 10.704.463 456.401 – 2.575.853 65.468 872.495 9.558 374.595.526.899 35.520 2.

Maturity Upto and under 3 Months in FCY .450.725 – 300.901 – – 1.810 52.548 29.266 3.012 34.012 36.588.353 6.446.147.086.043 29.Maturity Upto and under 3 Months in FCY .Maturity Upto and under 3 Months in FCY .Notes to the Unconsolidated Financial Statements For the year ended December 31.Over 3 Months .071. The Bank has obtained ratings from the websites of External Credit Assessment Institutions (ECAIs) and followed the SBP rating grade for mapping.505 – – 9.971.627.642 – 310.181 3.6 Unrated Amount Outstanding 780.307 Corporate Corporate Corporate Corporate Corporate Retail Banks .5 6 Unrated Unrated Unrated 1.155 51.865 76 NIB BANK LIMITED ANNUAL REPORT 2009 .548.Maturity Upto and under 3 Months in PKR Public Sector Entities Sovereigns Others Total 1 2.4 Types of Exposures and ECAIs used The Bank uses external ratings from local and foreign rating agencies.598 147.3 4.5 Credit exposure subject to Standardized Approach 2009 (Rupees '000') Exposure Rating Category 1 2 3.353 3.952 2.071.692.3 4.548.525 751.366 483.952 2.181 3.159 268.990 – 300.535 – – 616.265 – – – – – – 3. Exposures Corporate Sovereigns Retail Banks JCR-VIS PACRA Fitch – – – Moodys – – – 3 – – 3 – – Standard & Poor – – – 3 3 3 3 3 40.Over 3 Months .010 27.835.2.541.988 Deduction CRM – 334.535 – – 616.951 338.4 5.983.133 37.711 52.315.681 Net Amount 780.185.598 138.781. 2009 40.Over 3 Months .588.951 648.663.185.Maturity Upto and under 3 Months in FCY .155 51.867 33.777 1.010 27.864.Over 3 Months .5 Unrated 1.

The Bank has established an appropriate credit risk environment which is operating under a sound credit-granting process. measurement. ANNUAL REPORT 2009 NIB BANK LIMITED 77 . measurement and monitoring process and ensuring adequate controls. repurchase agreements (repos and reverse repos) and securities borrowing and lending transactions. acceptance. The Board of Directors of the Bank has approved the risk management strategy of the Bank and entrusted the implementation to the Board’s Risk Management Committee (BRMC). recommendations are made to improve upon processes and procedures to further strengthen the risk framework. Review of portfolios by BRMC on a quarterly basis and by IRMC on a monthly basis to evaluate the health of the portfolio. 2009 41. The Integrated Risk Management Committee (IRMC) is responsible for reviewing and highlighting key risk issues that require senior management’s attention. The risk management heads are responsible for ensuring the implementation of the Bank’s risk framework in their respective domains in line with the business model of the Bank and also in compliance with SBP guidelines. RISK MANAGEMENT While the overall responsibility of risk management rests with the Board of Directors. keeping in view the risk management policies of the Bank. they also report to the business head. monitoring and controlling risks. IRMC comprises of members from business units and the risk functions. for mitigating. An effective mechanism to ensure an ongoing review of systems. an internally developed rating system is followed. the Bank’s senior management has implemented a risk management framework with well defined policies and procedures. which addresses Basel–II requirements. In order to measure credit risk. Initial credit approvals and extensions are only approved by Credit Committees established at various levels. It is inherent in loans. The objective of credit risk management by the Bank is to ensure that the risk of default by a client or counterparty is reduced to a minimum. 41. The Bank also conducts stress testing analysis across portfolios. For the CSEG and SMEC businesses. Risk management heads for the business segments report to the integrated risk management head. commitments to lend and contingent liabilities. thereby evaluating their effects on the value of the portfolios. A credit approval process has been defined and is followed by all businesses in the Bank. duly approved by the Board.Notes to the Unconsolidated Financial Statements For the year ended December 31. policies and procedures for risk management and procedures to adopt changes. maintaining an appropriate credit administration.1 Credit Risk: Credit risk is the risk of failure by a client or counterparty to meet its contractual obligations. such as letters of credit. Following are the basic guiding principles of credit risk management that are embedded in the Bank and across business segments: Clearly defined risk management policies and procedures covering risk identification. monitoring. An effective management information system that ensures flow of information from the operational level to top management and a system to address any exceptions observed. by anticipating changes and applying shocks of different intensity values. reporting and control. An enterprise level assessment of risk composition is made at this platform and where necessary. A well constituted organizational structure clearly defining roles and responsibilities of individuals involved in taking as well as managing risk.

08 0.03 – 0.993.77 0.919.261.09 0.15 0. Hunting and Fishing Automobile and Transportation Equipment Cement.427 855 363.000.607 431.582 1.28 1.578 384.749.1.827.691 1.972.094 5.485 19.794.596 848.494.695 – 109.520 1.75 1.289.493 100.187 78 NIB BANK LIMITED ANNUAL REPORT 2009 .00 0.00 Percent (Rupees '000') 0.413 962.228 739.46 0.984 30.624 3.623 1.459 211.963 2.252 302.714.80 0. Storage and Communication Wholesale and Retail Trade Others 400.75 0.42 1.34 2.204. Gas.607 616.153.143 1.96 – 0.604.400 142.023.00 0.385 4.02 7.07 0.1.778 982.123 398.83 14.50 100.60 0.125 198.34 0.433 187.490 9.525 200 34.280.45 84.060 615.534 1.00 1.448.71 1.987 1.64 2.38 0.910 5.775 2.584 1.59 100.426 4.051.36 1.757 41.00 1.1.991 139.32 1.05 1.322.59 4.23 1.469.566 282.771 559.753 2.954 9.639.35 4.68 4.586.161.676 1.02 3.1 Segmental Information 2009 Advances (Gross) (Rupees '000') Agriculture.15 1.1 Segments by class of business Deposits Contingencies and Commitments Percent 0.Notes to the Unconsolidated Financial Statements For the year ended December 31.80 2.41 46.857 93.61 0.199.56 1.36 10.73 2.453 – 460. Forestry.21 0.273 4.109.316 675.238.64 1.437 – 81.00 0.805 Percent (Rupees '000') 1.60 100.22 0.982 142.20 2.155.474 10.453 2.505.953.444.40 0.028 94.329.687 43.298 6.354. Water and Sanitary Services Sugar Textile Transport.95 – 0.928.090 3.623 1.060 104.523 14.86 – 6.338.57 0.17 2.62 5.21 0.46 0.54 5.228 473.888 2.857.12 0.193.709 123.11 30.077 808.557 4.90 0.42 3. 2009 41.966 731.698 3.211.664.23 0.25 1.68 0.00 0.475 2.232 – 6.49 0. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power.35 3.24 10.33 9.

851 239.660 97.85 13.00 1.822.362 93.223 910.34 1.294 491. Water and Sanitary Services Sugar Textile Transport.084 4.85 1.560 9.00 0.95 4.481 4.421.82 98.473 1.122.496 1.76 2.47 – 4.628.689.13 80.597 578.724.639.215 1.925. 2009 2008 Advances (Gross) (Rupees '000') Agriculture.32 0.669.18 100.18 31.619 4.607 93.587.638. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power.22 0.420.72 0.574 100.42 3.921.278 2.117.752 1.788.465 89.32 0.131.590.85 0.223.36 0.285 83.87 9.93 10.757 2008 Advances (Gross) (Rupees '000') Public / Government Private 1.10 1.992 406.882 104.315 13.195 2. Storage and Communication Wholesale and Retail Trade Others 556.381.91 100.586.33 0.442 1.12 100.76 2.848 997.594 143.805 Percent (Rupees '000') 12.640 – 5. Gas.07 0.063 439.655 942.237 121.481 Deposits Contingencies and Commitments Percent 0.34 100.259.18 1.00 2.099 3.1.432.00 – 0.597.558 2.02 4.019.89 0.000.494 1.28 11.74 3.827 41.484 93.285.08 100.144.69 13.322.98 0.877 41.350 889.203 104.910 2.194.05 98.813 – 317.950 123.31 100.40 0.00 Percent (Rupees '000') 0.63 0.37 1.26 0.822 309.45 1.610 456.299 2.55 39.302.119.126.504 9.821 96.481 Deposits Contingencies and Commitments Percent 4.919.26 0.827 ANNUAL REPORT 2009 NIB BANK LIMITED 79 .97 4.124.430 182.40 1.144.223.187 Public / Government Private 5.767 11.40 2.482 450.00 3.37 – 0.43 0.03 0.00 76.Notes to the Unconsolidated Financial Statements For the year ended December 31.445 30.018 466.713.17 2.007 28.985.57 9.799.20 0.00 20.39 0.770 – 368.21 95.005 4.538 3.307.503 407.919.69 80.131 1.034.243.47 4.449.125 368.021.22 100.00 12.133 2.32 1.546 318. Hunting and Fishing Automobile and Transportation Equipment Cement.30 3.00 Percent (Rupees '000') 5.92 87.090.57 1.877 244.40 0.092 381.405.145 2.169 200 – 2.16 2.537.322.302 2.586.47 0.00 Percent (Rupees '000') 1.79 100. Forestry.2 Segment by sector 2009 Advances (Gross) (Rupees '000') Deposits Contingencies and Commitments Percent 1.04 2.43 0.183 94.62 1.281 689.36 0.995 577.383 97.736 888.988.305 35.42 1.21 0.08 0.815 2.384 74.858 10.72 3.00 – 0.078 387.367 12.399 1.321 81.245.95 100.239 1.14 0.78 94.777.721.167 Percent (Rupees '000') 19.505.49 0.167 Percent (Rupees '000') 1.642.137 968.1.

733 368.071.995 318.280 900.891 745.515 16.054 – 304.417 3.1. Forestry.789 261.272 11.3 Details of non-performing advances and specific provisions by class of business segment Agriculture.515 23.442.430 759.068.515 23.005 848.410 950.812 22.638 73.997.429.955 66.200 250.446 1.4 Details of non-performing advances and specific provisions by sector Public / Government Private – – – 22.156.888 345.457.146 179.334.Notes to the Unconsolidated Financial Statements For the year ended December 31.129.145 497 380.210 854.766 570.429.225.1.715.1. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Financial Food and Beverages Footwear and Leather Garments Individuals Mining and Quarrying Oil and Gas Paper and Printing Power.455 22. 2009 2009 Classified Specific Advances Provisions Held 2008 Classified Specific Advances Provisions Held (Rupees '000') 41.087.791 368. Storage and Communication Wholesale and Retail Trade Others 35.746.528 59.243 791.457 80 NIB BANK LIMITED ANNUAL REPORT 2009 .064 4.274 214.430 1.666 74.720 155.715.771 1.157 716 7.812 – 16.249 8.457 23.816 237.960 5.498.881 349.600.654 103.256 11.106 467.136 1.824 4.972 – 292.851 191.365 309. Water and Sanitary Services Sugar Textile Transport.937 16.198 1.076 675.457.337 175.526 15.526 15.658.812 124 365.939 56.754 2.016 – – 168.376 1.521 9.069 490.645 63.527 261.056.429.736 439.457.517 236.536 3.457 2009 Classified Specific Advances Provisions Held 2008 Classified Specific Advances Provisions Held (Rupees '000') 41.746.623 485.259 1.884 1.534 658.872 9.943 309.274 295.571 814.334 1.001.417 669.253 – – 174.148 69. Gas.715.1.526 15.233 467.711 342.089 532.762 616. Hunting and Fishing Automobile and Transportation Equipment Cement.196.746.043 589.

533 166.591 11.944 1.963 158.588 782.010 5 19.909.501.245 123.563 (2.118.505.698. such as interest rate risk due to mismatch of loans and deposits. The core objective of foreign exchange risk management is to ensure that the exposure of the Bank remains within desired levels of risk appetite.328 – – – – 41.1 Foreign Exchange Risk Foreign exchange rate risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.115 39.153 60. Conversely.590.479) 1.209.963 2008 Pakistan (10. It is the risk that the value of on and off balance sheet positions of the Bank will be adversely affected by movements in market rates or prices. Furthermore.428.997.513 50. such as credit limits.5 Geographical Segment Analysis Pakistan 644.387.2 Market Risk Market risk is primarily composed of price risk and arises out of treasury trading and investment activities. 41.910.861 8.528.890) 178.718 511. the Bank monitors Value at Risk (VaR) and Price Value Basis Point (PVBP) for the foreign exchange portfolio in order to estimate any potential losses due to changes in price. review of mark to market portfolio etc. The Bank recognizes that it may be exposed to market risk in a variety of ways.1.528. The Bank has implemented global / regulatory best practices in order to manage the inherent risk of product and market.175 5.Notes to the Unconsolidated Financial Statements For the year ended December 31.245 ANNUAL REPORT 2009 NIB BANK LIMITED 81 .869 477.797 208.476.096 8.118.182.059 23.827 41.957 16.1.574 6. 2009 Off Balance sheet items Net foreign currency exposure Assets Liabilities (Rupees '000') Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 199.264 41. it may be implicit.144. The Bank also monitors maturity mismatch gaps to identify any potential risks.2.071 208.625.054 4.822 177.299. Market risk exposure may be explicit in the portfolio of equities and foreign currencies that are actively traded. 2009 2009 Profit / (Loss) before taxation 41.186 7.508 93.187 Total assets employed Net assets employed Contingencies and commitments (Rupees '000') 41. Market risk may also arise from activities categorized as off balance sheet items.273 11. monitoring of foreign exchange exposure limits.190 1.

607 (3.698. The Bank is using Market Risk tools such as PVBP.159 561.441 178.197. the Bank periodically applies a VaR methodology to assess the market risk positions held.997. Fixed rate debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities.956 2.177.301 227.700 12.053 60 14. Equity Price Risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of the Bank.012) 11.963.520.514) (6.947 1. 82 NIB BANK LIMITED ANNUAL REPORT 2009 . Currently the Bank is using variance covariance model for calculating VaR across both the equity & fixed income portfolios.467 14. The Bank is also using Market Risk tools such as Alpha.2 Equity Price Risk and Fixed Income Rate Risk The Bank has a set of approved notional & dealer limits for managing risk across the trading & banking book.212 607.465 6.491 21.151 39.Notes to the Unconsolidated Financial Statements For the year ended December 31. Beta and Sharpe ratio for risk measurement and assessment.397) (8. In order to manage the market risk in the trading book.723.290 139. Fixed income securities are subject to the risk of price volatility due to interest rate movements.816. Price risk associated with equities could be systemic or idiosyncratic.503.2.115 129.341 – – – – 39.768 1.909.508 41.438. Duration.016 16.954 4.024 7.210.857 (39. 2009 2008 Off Balance sheet items Net foreign currency exposure Assets Liabilities (Rupees '000') Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 173. Parallel shift and Non Parallel shift for risk measurement and assessment.132 964.632) 2.

436 54.121.051) 18.365 45.823.986 4.808.sale Off-balance sheet gap Total Yield / Interest Rate Risk Sensitivity Gap NIB BANK LIMITED Cumulative Yield / Interest Rate Risk Sensitivity Gap 83 .005.125 1.262.109 5.138.726 3.707 (3.306.714 891.498.400 – 3.401.273) 54.783 5.352.178.630 52.328.098.293.506.882.306.887 62.496 – 265.306.925 9.790.668 677.831.71% – 165.271 – – – – – – 1.2.432.924 – – – 7.275 3.805 11.767.411 361.190.919.306.932.782 (40.367.786 4.296.153) 24.486.499 – – – 3.678 270.153) On-balance sheet financial instruments Assets Cash and balances with treasury banks 0.737 3.002 3.204 32.256 1.853.574.354 – 7.988.970 23.273) 3.780.691 13.972 3.406 5.623 18.973.321.281) 22.997.921.597.592.388.612 680.021.175.115.299 17.917 3.101.654) 967.619.181.997.457 – 1.998 (511.250.594 48.3 Mismatch of Interest Rate Sensitive Assets and Liabilities 2009 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Non-interest Above bearing financial 10 Years instruments ANNUAL REPORT 2009 8.557 100.167.523.543 (40.894.233.390.420 – – – 680.496 11.681.425 – 861.425 4.945 – 337.306.627.222.007.824 (10.446) – – – 4.12% 10.816 – – – (10.832 – – – 7.602 16.429 – – – – – – 1.015 3.841 4.139 19.754.551 0.310.271 – – – 1.019 240.939 12.258 5.493.499) (26.945 – 8.944.105 (39.00% Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Notes to the Unconsolidated Financial Statements For the year ended December 31.551 7.488 – 4.421 7.405.612 – – – 265.562 31.997.363 27.600 – 3.223.977 84.024.609.217 – – – – 4.purchase Foreign exchange contracts .841 780.75% 13.266.45% 13.994.12% – 10.945 729.41.56% 12.808.834.909.224 – – 470.647 – 945.361 6.574.521 22.770 1.50% 7.281) (17.971 170.184.973.600.667 5.547.834.674 18.622.783 28.705 – – – – – – – – – 46.222.125 12.958.682 29.562) (1.650.000 – – 1.207 – – – – – 387.000 – – – – – 4.683.887 360.672.181.236 899.833 (10. 2009 Other liabilities On-balance sheet gap Off-balance sheet financial instruments Foreign exchange contracts .539 2.402 – – 1.301) 56.883 – – – 628.751 62.970 – 967.378.125 7.207 – 24.388 – – 698.819.570 373.217 30.223.729 42.647 (9.867.060 889.831.664 3.74% 15.035.799 3.992 24.194 4.181.793.554 28.985.128) (1.585.042.600 – – 93.

301.038 – – – 273.578.654 34.000 2.295.Notes to the Unconsolidated Financial Statements For the year ended December 31.670.806 12.752 2.682 – – – 4.352.156.432.052.366 15.558.419 313.021.002 688.773 (25.147.176.227.710 13.698 1.578.614 1.879 4.869 – – – – – 793.146 14.767.985) 6.143.834.604 35.452.217 – 7.958) 656.858.882 7.536. 2009 84 2008 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Non-interest Above bearing financial 10 Years instruments NIB BANK LIMITED 0.338.209.682 4.880 – – 1.819 2.200 – 3.670.013.589.355.040 1.958 10.532.848 273.999.692 11.256 72.10% 11.339) 43.036 562.558 6.146 – – – 2.344.632.580.427 8.989.100 34.000 19.200 – – – 104.352.162 – 2.702.290 9.038 40.216 216.043.950 (4.886 50.249.purchase Foreign exchange contracts .571 – 823.723 (30.433.945 – 511.241 23.749 35.784 (8.517 – 5.014.357) 40.312 9.457 3.384 6.626 – – – – – – – – 1.607 1.000 1.084 – 20.625.183 27.301.018 1.166 2.625.713 52.703 1.586.385.140.985) – – – (8.193 3.931.858) 13.088.004 126.493.136 1.459.886 6.550 – – 1.150 15.100 – – – – – – – – – – 261.864.118.571.682.752) (13.488 61.000 (15.sale Off-balance sheet gap Total Yield / Interest Rate Risk Sensitivity Gap Cumulative Yield / Interest Rate Risk Sensitivity Gap ANNUAL REPORT 2009 .432.346.533 976.799 – 9.100 – 656.607 15.599.858.725.299.152.616.08% 14.267.999.241 20.083 4.621 10.739.589.609 – 2.324.921.564 569.355) 14.636.115 4.863.111.061.091.416 – – – – – – – 8.834.139 – 607.651.646 1.970.646 1.607 – – – 823.900.823 4.530.478 – 5.771 1.886 3.126.98% – 138.759 5.366 12.613 22.091 – – – – – – 823.316.90% 0.104 1.041.635 31.390.590.939 12.866 300 – – 512.843 667.344.780.852.42% 10.93% 15.183 – – – – – 1.25% 14.854 12.167 22.339) (8.984.908 5.277 On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Foreign exchange contracts .031.016.537.17% – 141.713 (8.790.765 2.604 5.892.288.702.891 4.416 18.607 8.931.084 – – – – – – 367.107) (13.806 – – – 7.312.688 80.481.171.156.130.

066 12.275 3.239.3.919.455 13.402 1.819.211 – – – 1.41.528.600 4.294 1. current accounts and saving accounts are shown as having a maturity upto one month.575.598 14.121.089 8.865 2.797 194.281 5.913 8.783 5.597.940 61.590.624 1.246 – – – 2.834.718.013 386.467 9.131.472 269.322.600 33.271 6.037 5.151 338. The Bank's objective of liquidity management is to ensure that it will always have sufficient liquidity to meet its liabilities when due.365 93.957. as these flows normally occur over a period of one month to three years.498.272 (115. – Maintaining stable and diversified sources of funding.190 Notes to the Unconsolidated Financial Statements For the year ended December 31.860.683. and regular liquidity stress testing under a variety of scenarios.017 49.297 91.047 251.384 622. The liquidity risk policy is formulated keeping in view SBP's guidelines on risk management and international best practices.102.702 787.437.128.474.430.632 26.348 208.000 73. Exposure to liquidity risk is also monitored through regular review of liquidity risk limits and escalation of any liquidity risk limit excesses to senior management.302.019 240.426 – 5.623.314.053 1.204 800 2.994 1.335.275 3.239.017 38.698 26.929 1.615.048.027) 41. 85 .600 145. based on historical behaviour.109 66.551.406 3. among others.249 – 33.000 4.245 (46.479 4. 41.894 (7.643. The Bank manages its liquidity risk through ANNUAL REPORT 2009 2009 Total Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Over 1 Months to 1 to 2 Year Years (Rupees '000') Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Above 10 Years – Controlling the cash flow mismatch between on and off-balance sheet assets and liabilities.350 (206.878 46.342 12.783 5.271 8.207 45.118. Consequently.030 360.528.361 233.net The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7.483 – – – 7. 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.350 – 861.559 130.751 1.774.473 24.940 197. management is of the opinion that the possibility of these inflows / outflows actually occuring entirely within one month is remote.1 Maturities of Assets and Liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 8. by the inability of the Bank to settle its liabilities on their due dates.469.578 (999.943.690 – 211.370 – 1.117.114.540) – – – 6.070 – – – 14.893) 41.395 1. Scenarios encompass both normal and stressed market conditions.650.295.368) 115. The Bank maintains its liquidity by keeping a level of liquid assets that is considered sufficient to settle its obligations when due.221.805 3.241.946 5.230 – 270.925 18.776.269 – – 360.434.336 733. – Ensuring the Bank has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.238 677.321.008 – – – 373.780.759.042.887 100.657) (13.464.887 62. under both normal and stressed conditions.314.574.020 183. based on contractual maturities.741 166.000 1.258.284 30.521.718 41.419 10.3 Liquidity Risk Liquidity risk exposure is the risk caused.301 3. 2009 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Net assets Share capital Reserves Accumulated Loss NIB BANK LIMITED Deficit on revaluation of assets . However. without incurring unacceptable losses.523.800 19. Financial Instruments: Disclosures.017 102.432.841 780.139 294.427.137 – 9.411 361.738 2.834.337.999) 3.574.996.121 3.735 8.487 2.229.190 – – – – – – 33.388 1.932.824 124.940.666.472 1.819.996.759.328 – – – 25.211.434.112 26.707.441 61.664 8.615.681.517 248.104. The Bank carries out careful monitoring and control of the daily liquidity position.770 4.058.293.939 4.683.751 800 319. all demand assets and liabilities such as running finance.977 84.207 62.399 – 337.865 68.840.021.014.873 2.002 – 387.292.997.592 30.245 40.976 360.032.003.602 24.617.678 2.612 – 1.391 144.384 6.963 1.810 – 265.254 15.173.012 1.215.

006 355.757.210 289.237 48.206.654 25.684 (7.678 43.115.504 12.478 7.008 130.192 1.361 59.672 (1.722.355.371 5.432 – 40.687 – 607. current accounts and saving accounts are shown as having a maturity upto one month.000.459.401 Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Net assets Share capital Share Deposit Money Reserves Accumulated Loss Deficit on revaluation of assets .668.823 80.210.669.130.712 145.230.624.349.651.450 196.780.880 43.706 3.690.989.180.438 6.866 300 3.664.539 4.663 21.091 1.843 12.600 67.881 98.437.537 215.057 3.166.879.674 5.815 4.608.164) 39.321 (11.024.424 247.308.216 216.372 4.698.193 3.924.756.236.698.000 8.909.208.084 – – – – – 367.445 404.582 (81.852.097 3.442 7.439 178.163 6.149 514.040 1.564 569.385 222.169.994. based on historical behaviour.293.527 12.461 492.565 11.523.115 1.494 15.721) 24.702.783) 2.003.644 263.550 1.668 1.083 2.721) (81.434 141.426 26.065 7.355. 2009 86 2008 Total (Rupees '000') NIB BANK LIMITED Upto 1 Month Over 1 to 3 Months Above 10 Years Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Assets 9.541.Notes to the Unconsolidated Financial Statements For the year ended December 31.332.228 3.444 5.345 300.212.807 10.601 191.net ANNUAL REPORT 2009 The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7.191.733 33.843 – – – – – – – 9.667 57.001 43.311 2.209.424.692 10.895.619.104 793.104 – – – – – – – – – – 6.869 – – – – – – 1.597 260.011.130 1.236.890 219.759 5.891 121.508 (15.533 976.526 12.752 2.961 406.005.508 28.258.432.923 1.366 104.167 3.725.271 12. as these flows normally occur over a period of one month to three years.002 688.495 3.666.412 – 800 – 800 1.930 749 4.283) 41. .576 18. all demand assets and liabilities such as running finance. However.388.996.973 1.067.017 15.999.644 55.211.760) 83.249. Financial Instruments: Disclosures.246.176.158.143 3.532 68.600 130.951 10.276. management is of the opinion that the possibility of these inflows / outflows actually occuring entirely within one month is remote.475 72.813 8.536.621 35.344.475.084 23.259 241.261 575.200 5.793 21.586.819 2.432.607 1.326.398 129.790 139.607 39.006.597. based on contractual maturities.922.021.533.229 311.519 164.880 667.534 1. Consequently.628.314.656.401 – – – – – – 40.326.945.116 – 511.850 68.199 86.635 6.226 793.241 12.914 11.

2009 41. assessment. assess. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director ANNUAL REPORT 2009 NIB BANK LIMITED 87 . DATE OF AUTHORIZATION FOR ISSUE These unconsolidated financial statements were authorized for issue on February 26. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner through a framework of policies. IRMC is also responsible for ensuring that adequate and appropriate policies and procedures are in place for the identification. people and systems or from external events.Notes to the Unconsolidated Financial Statements For the year ended December 31. procedures and tools to identify. – Ensuring senior management attention on significant operational risk exposure areas and that risk mitigation is given prioritized focus. The Bank has undertaken the following high-level strategic initiatives for the effective implementation of Operational Risk Management: – Recruiting skilled resources for Operational Risk Management – Developing policies. 42. 2010 by the Board of Directors of the Bank. procedures and defining end to end information flow to establish a vigorous governance infrastructure. monitor. control and reporting of operational risks. – Ensuring that customer impact is minimized through proactive and focused risk management practices.4 Operational Risk Management Operational risk is the risk of loss resulting from inadequate or failed internal processes. Khawaja Iqbal Hassan President / Chief Executive Francis A. monitoring. The key objectives of Operational Risk measurement and management include: – Ensuring continued solvency of the Bank through capital adequacy and enhanced understanding and management of significant operational risk exposures. The IRMC has the responsibility to supervise and direct the management of operational risks and key operational risk exposures. control and report such risks.

KARACHI 7 TARIQ MEHMOOD. ISLAMABAD 3 MUHAMMAD RASHID. 29-1 STREET NO. 9 GULSHAN-E-IQBAL. 6 MUHALLA RAJPOOT PARK SHAHDARA TOWN 5. RAWALPINDI 17 FAROOQ AHMED KHAN. FLAT 4 2ND FLOOR 31 C LAIN 15 EXTENTION 2 DHA. HOUSE NO. GULSHAN-E-HADEED BIN QASIM TOWN. L NORTH NAZIMABAD. 941 D TYPE COLONY 36. 25 STREET NO. D-14/1 BLOCK NO. FL/12 SECTOR NO.1 88 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.Annexure . NAWAN SHER. LAHORE 10 ABDUL BASIT. FLAT NO. B . Name & Address of borrower 1 AHMEDI KHATOON. MULTAN 15 SYED MUHAMMAD MUJEEB HASAN. Other Financial Relief RAJA KHURRAM SHAHZAD 61101-1759279-3 MUHAMMAD NAZIR RAJA 473 44 – 517 473 44 – 517 MUHAMMAD RASHID 42401-7517058-5 MUHAMMAD ARSHAD 483 39 – 522 483 39 – 522 ADNAN SAEED 42201-4418072-9 MOHAMMAD SAEED 677 50 – 727 677 50 – 727 MUHAMMAD YOUSAF 35202-2753273-3 IQBAL HUSSAIN 802 70 – 872 802 70 – 872 BASIT HAMEED 42301-7952967-3 S. KARACHI 9 SADIA AMIR. KARACHI 2 RAJA KHURRAM SHAHZAD. HOUSE NO. NEAR REHMAT BAKERS. A. HOUSE NO. KARACHI 18 SAQIB AYAZ. 2009 (Rupees '000') Name of Individual / partners / directors Name AHMEDI KHATOON 42501-8367583-4 MOHUDDIN AHMED QADRI 658 55 – 713 658 55 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Total 713 NIB BANK LIMITED NIC No. 27 BLOCK C5 RABIA FLOWER ABUL ASPHANI ROAD GULSHAN-E-IQBAL. HOUSE NO. FLAT NO. RAWALPINDI ANNUAL REPORT 2009 19 ANJUM MUSHTAQ. B-44/2 TARIQ ROAD WARD NO. FLAT NO. A-3106 PHASE II. HAMEED 481 51 – 532 481 51 – 532 TARIQ MEHMOOD NAVEED AHMED KHAN 42101-5060733-9 MUHAMMAD RASHEED 540 40 33100-1941986-1 KHALIL MUHAMMAD 535 45 – – 580 580 535 540 45 40 – – 580 580 SADIA AMIR 35202-2618206-6 AMIR ANJUM 470 38 – 508 470 38 – 508 ABDUL BASIT 42501-6387417-7 MUHAMMAD SIDDIQUE 677 50 – 727 677 50 – 727 SHAHID ALI 35202-3469320-3 SHARAFAT ALI 480 42 – 522 480 42 – 522 RAHEEL MALIK 35202-2461848-3 MUHAMMAD ANWAR 497 41 – 538 497 41 – 538 MUHAMMAD IRFAN 35202-9442739-1 MUHAMMAD LATIF BHUTTA 677 50 – 727 677 50 – 727 MEHMOOD ALAM 36302-3396791-5 MUHAMMED RAFIQE TAHIR 541 50 – 591 541 50 – 591 SYED MUHAMMAD MUJEEB HASAN SALEEM JAHANGIR 42101-4224761-5 37405-3556042-5 SYED SARFARAZ HASAN CHAUDHRY CHARAGH DIN 626 623 81 78 – – 707 701 626 623 81 78 – – 707 701 FAROOQ AHMED KHAN 42201-9218623-7 KHURSHID AHMED KHAN 485 71 – 556 485 71 – 556 SAQIB AYAZ 37405-6676668-9 SHEIKH MUHAMMAD AYAZ 485 71 – 556 485 71 – 556 ANJUM MUSHTAQ 42201-6808625-5 MUSHTAQ AHMED 461 68 – 529 461 68 – 529 S. LAHORE 14 MEHMOOD ALAM. A-37/1 MALIR TOSEE COLONY KHOKRAPAR. KARACHI 16 SALEEM JAHANGIR. LAHORE 12 RAHEEL MALIK. FAISALABAD 8 NAVEED AHMED KHAN. 1 MUHAMMADI KOT BAND ROAD. KARACHI 4 ADNAN SAEED. KARACHI . HOUSE 5 STREET 6 MOHALLAH BAGH MUNCHI LAHDAHA KACHA RAVI ROAD. HOUSE NO. LAHORE 6 BASIT HAMEED. HOUSE NO. 05 REHMAN GANJ KHOKHAR ROAD BADAMI BAGH. 15 MIAN GHULAM QADIR ROAD SWAMI NAGAR. B 7 2ND FLOOR FALAK NAZ CENTRE MAIN SHAHRAH-E-FAISAL. HOUSE NO. POST OFFICE STOP KALAN TEHSIL & DISTRICT 35. C/10 GROUND FLOOR PLOT NO. LAHORE 13 MUHAMMAD IRFAN. FARHAT COTTAGE STREET NO. HOUSE F 731 SETLITTE TOWN 26. NA 223-A STREET 7TH ROAD NEW MALLPUR. HOUSE NO.No. KARACHI 5 MUHAMMAD YOUSAF. 5/X NORTH KARACHI. KARACHI 11 SHAHID ALI.152 BLOCK NO. FLAT NO A 3 BEDROCK APARTMENT RAMSEY ROAD FRERE TOWN.

LAHORE ABDUL WAHID 33100-4986843-5 MUHAMMAD SADIQ 486 510 471 39 – 510 27 ABDUL WAHID. HOUSE 442 KOCHA HAJI PIR INSIDE YAKI GATE 5. 149 BLOCK NO. 2009 (Rupees '000') Name of Individual / partners / directors Name ASGHAR ALI 42301-1099243-9 FAZAL HUSSAIN 454 57 – 511 454 57 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 511 ANNUAL REPORT 2009 Annexure . 20 ASGHAR ALI. LAHORE NADEEM SULTAN 35201-4794109-9 ALLAH DITTA 531 45 – 576 531 45 – 576 30 NADEEM SULTAN. HOUSE E-141/28 STREET 5 FIRDUS PARK GHAZI ROAD 5. MULTAN MOHAMMAD FEROZ 36302-8075018-1 MOHAMMAD RAFIQUE 709 60 – 769 709 60 – 769 35 MOHAMMAD FEROZ. 7/A JINNAH COPRATIVE HOUSING SOCIETY HILL PARK. FAISALABAD ATEEQ UR REHMAN 42201-4190649-7 ABDUL GANI 622 40 – 526 486 40 – 526 28 ATEEQ UR REHMAN. 5 MUHAMMAD ALI PARK PINDI DASS ROAD SHAHDARA. LAHORE 35202-2526802-3 ATTA UR REHMAN KHAN 663 54 – 717 663 54 – 717 37 MUDASSAR ABDULLAH. LAHORE AHSAN RAZA 35403-6861581-1 SIRAJ DEEN 522 48 – 570 522 – 500 23 AHSAN RAZA. HOUSE NO.3 GULISTAN-E-JOHAR. R-36. LAHORE SYED USMAN ALI 35202-2583375-7 MUHAMMAD IQBAL 436 64 – 500 436 64 – 509 22 SYED USMAN ALI. LAHORE TAUFEEQ AHMED SADIQ NAWAB 569 53 – 622 569 53 – 622 34 TAUFEEQ AHMED. FLAT NO.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. 35/8 TIPU SULTAN COLONY HASSAN PERWANA. 3 MUHALLAH SHAHEEN PARK LAL PULL MUGHAL PURA 5. KARACHI AZEEM KHAN 42201-4266001-1 HAJI QASIM 604 44 – 648 604 44 – 648 NIB BANK LIMITED MUDASSAR ABDULLAH 36 AZEEM KHAN. 07 RIFFLE RANGE KORAY STOP WALTON ROAD. HOUSE NO. HOSUE 389 B PAK BLOCK ALLAMA IQBAL TOWN 5. FAISALABAD ABDUL SATTAR ANJUM 35202-3014209-5 FAQEER MUHAMMAD 519 44 – 558 52 – 610 25 ABDUL SATTAR ANJUM. LAHORE MUHAMMAD KHURSHEED AKHTAR GHULAM SARWAR 641 53 – 694 641 53 – 694 32 TANVEER IQBAL. Name & Address of borrower NIC No. HOUSE 1663 1ST FLOOR IMRAN STREET 4 FEROZ PURA RAVI ROAD.1 S. STREET NO. KARACHI MUHAMMAD KHALID 35201-0610345-7 MUHAMMAD SHAFI 450 59 – 509 450 59 21 MUHAMMAD KHALID. KARACHI IMTIAZ AJMAL 31302-0413236-9 ATTA ULLAH KHAN 52 – 674 622 52 – 674 29 IMTIAZ AJMAL. HOUSE 25 UMER STREET SUNNY PARK SAEED KARYANA STORE MUGHAL PURA. 9 STREET NO. LAHORE MUHAMMAD JAVED 33100-6605683-1 MUHAMMAD AMIN 558 52 – 610 48 – 570 24 MUHAMMAD JAVED. BISMILLAH PARK STREET NO 5 IQBAL SHAHEED COLONY. HOUSE 176 BLOCK 1 1ST FLOOR SECTOR B II TOWN SHIP 5. LAHORE MUHAMMAD WAQAS KHURSHEED TANVEER IQBAL 37405-1726448-3 33303-6105238-3 500 42 – 542 500 42 – 542 31 MUHAMMAD WAQAS KHURSHEED. HILL TOWN BANGLOWS BLOCK . HOUSE NO. 2 NEAR TELENOR TOWER. RAWALPINDI AMAN SADIQ 35201-8802503-7 780 72 – 852 780 72 – 852 33 AMAN SADIQ. HOUSE 222 STREET 1 JILANI PURA SARAFA BAZAR SATIANA ROAD. LAHORE MUHAMMAD ALI SHAHID 35201-9890700-5 SHAHID HAMEED AMJAD 471 39 – 563 519 44 – 563 26 MUHAMMAD ALI SHAHID.No. HOUSE NO. HOUSE 102 SUPER MEHAL APARTMENT HASRAT MOHANI ROAD. LAHORE 35202-2556548-7 MUHAMMAD ABDULLAH 616 49 – 665 616 49 – 665 89 . HOUSE 374 STREET 3-A NASEERABAD KOHINOOR MILLS PESHAWAR ROAD. 27/B-1 STREET NO. HOUSE 4 UPPER PORTION MAIN SUIGAS ROAD ALLAMA IQBAL COLONY SHAHDRA 5. 1 BLOCK Z SCHEME NO. HOUSE NO.

FLAT NO. P 47 STREET 3 BLOCK X MAINDA TOWN. Name & Address of borrower 38 MUHAMMAD JAFAR. 2. E 112/2 NEW SUPER TOWN 5. FLAT B-105 HAROON HEAVEN BLOCK A SECTOR 15 A/1 BUFFER ZONE.No. 2 MUHAMMAD PURA. 3 MUHALLA JINNAH PARK KOT SHABDIN SHADRA. R 1096 BLOCK NO. HOUSE 280 BUKHARI COLONY MANGHOPIR ROAD 34. LAHORE 40 MOHAMMAD INAM. SHALIMAR LINK ROAD SOHUWARI MUGHAL PURA. SINDH CHOWK 3 KILOMETER CHUNGI STOP SINDHU CHOWK KAMAHAN DAKHANA LINK FEROZPUR ROAD LAHORE CANTT KHANS.1 90 (Rupees '000') Name of Individual / partners / directors Name MUHAMMAD JAFAR 33100-7571386-9 MUHAMMAD ISHAQ 450 59 – 509 450 59 – 509 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. 99 BLOCK NO. HOUSE NO. P-974 CHAK NO. KARACHI 49 MUHAMMAD RIZWAN SARWAR. P-18 STREET NO. FAISALABAD 39 KASHIF PERVEZ. A/32 UMER FAROOQ TOWN KALA PUL NEAR NAVEL HEIGHTS. LAHORE 53 MUHAMMAD ADREES. HOUSE NO. LAHORE . KARACHI 55 ARIF ISMAIL. RAWALPINDI 47 SYED TASNEEM HUSSAIN ZAIDI. R 500 SECTOR 8 NORTH KARACHI 34. FAISALABAD 52 MUHAMMAD AMIR. 46/5. LAHORE 51 GHULAM NABI. LAHORE 42 LIAQUAT HUSSAIN. KARACHI 41 AFTAB AHMAD.Annexure . FAISALABAD 54 MUHAMMAD SHAHID AKHTAR. 20 FEDERAL B AREA SUHRAB GOTH 34. KASHIF PERVEZ 35201-5113920-9 PERVEZ AKHTAR CHOUDHRY 552 69 – 621 552 69 – 621 MOHAMMAD INAM 42401-1935916-9 MOHAMMAD AFZAL HUSSAIN 541 67 – 608 541 67 – 608 AFTAB AHMAD 35202-0827638-7 ABDUL REHMAN 517 64 – 581 517 64 – 581 LIAQUAT HUSSAIN 42301-6142963-9 MUHAMMAD YOUNAS 481 82 – 563 481 82 – 563 SHABANA KHAWAJA MUHAMMAD 42201-3319748-4 KHAWAJA MUHAMMAD 477 81 – 558 477 81 – 558 SYED SHAFQAT ALI QADRI 42101-1942367-9 SYED HAFIZ HASHMAT ALI QADRI 472 41 – 513 472 41 – 513 ABDUL KHALIQ 42101-6839038-5 ABDUL WAHAB KHAN 472 70 – 542 472 70 – 542 CHAUDHRY ASIF NAWAZ 37405-0369141-1 MUHAMMAD ASLAM 468 80 – 548 468 80 – 548 SYED TASNEEM HUSSAIN ZAIDI 42101-1855151-7 SYED MUZAHIR HUSSAIN ZAIDI 468 80 – 548 468 80 – 548 ALI SHAYAN 42201-4397279-9 MOHAMMAD SARFARAZ 463 80 – 543 463 80 – 543 MUHAMMAD RIZWAN SARWAR MUHAMMAD YOUSAF BAJWA 35201-0148958-1 35202-8828868-7 MUHAMMAD SARWAR MUHAMMAD YASIN BAJWA 440 438 66 64 – – 506 502 440 438 66 64 – – 506 502 GHULAM NABI 33100-0661458-7 JAN MUHAMMAD 560 50 – 610 560 50 – 610 MUHAMMAD AMIR 35201-2926934-7 MUHAMMAD ALTAF 468 39 – 507 468. 4 1ST FLOOR SOBRAJ YELLOW HOUSE I. KARACHI 43 SHABANA KHAWAJA MUHAMMAD. KARACHI 48 ALI SHAYAN. 01 D II GULSHAN RAVI 5. CHUNDRIGAR ROAD.I. KARACHI 44 SYED SHAFQAT ALI QADRI. LAHORE 50 MUHAMMAD YOUSAF BAJWA. HOUSE NO. 1 BAZAR NO. FLAT 604 BLOCK I RUFI LAKE DRIVE BLOCK 18 GULISTAN-E-JOHAR 34. STREET NO. KARACHI 45 ABDUL KHALIQ. 39 – 507 MUHAMMAD ADREES 33100-7528667-3 MUHAMMAD SHAREEF 651 54 – 705 651 54 – 705 MUHAMMAD SHAHID AKHTAR 42301-7858788-3 ABDUL KHALIQ 557 41 – 598 557 41 – 598 ARIF ISMAIL MUHAMMAD BASIT SALEEM 35202-2487168-7 35202-1786054-7 SH MUHAMMAD ISMAIL MUHAMMAD ANAYAT ULLAH 472 642 38 48 – – 510 690 472 642 38 48 – – 510 690 S. 8A. 203 RB MANA WALA. Z-202 SARA APARTMENT GULZAR-E-HIJRI. 2009 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief NIB BANK LIMITED NIC No. HOUSE 4 STREET 4 ASLAM PARK SHAHDRA TOWN. HOUSE NO. LAHORE ANNUAL REPORT 2009 56 MUHAMMAD BASIT SALEEM. HOUSE NO. HOUSE 81/1 STREET 1 CHAMPIONS COLONY GULZAR-E-QUAID. STREET NO. KARACHI 46 CHAUDHRY ASIF NAWAZ. HOUSE NO. C GULSHAN-E-RAVI.

LAHORE 58 IMRAN KHALIL.1 S. 486 BLOCK NO. 03 NAIMATABAD JHANG ROAD. HOUSE NO. HOUSE NO. KARACHI SHEIKH SAJID HUSSAIN 34104-2331782-3 SHEIKH ASSHAD HUSSAIN 508 62 – 570 508 62 59 SHEIKH SAJID HUSSAIN. Name & Address of borrower NIC No. KARACHI MUHAMMAD TANVEER GHULAM MUSTAFA 569 42 – 611 569 42 – 611 71 MUHAMMAD TANVEER. 1343 SHARIF CHOWK D TYPE COLONY. HOUSE P-1029-C/1 A MUHALLAH DIGREE COLLEGE ASGHAR MALL ROAD. 1 LANE 5 MOHALLA GULISTAN COLONY. HYDERABAD MUHAMMAD AMIN 41303-8079330-5 ANWAR UL HAQ 520 45 – 565 520 45 – 565 72 MUHAMMAD AMIN. NW-712 SAID PUR ROAD.B.B. KARACHI MUBASHIR JAWAD CHAUDHRY 61101-9486846-9 596 87 – 683 596 87 – 683 68 MUBASHIR JAWAD CHAUDHRY. 41. HOUSE B-215 BLOCK 10 GULSHAN-E-IQBAL 34. NO. LAHORE SAEED AHMED 42501-9143732-5 MALIK MUHAMMAD NAWAZ 487 63 – 550 487 63 – 550 70 SAEED AHMED. FLAT NO. RAWALPINDI TANZEEM AKHTER 42000-0146089-1 MUHAMMAD BASHIR 472 41 – 513 472 100 – 788 61 TANZEEM AKHTER. FAISALABAD REHAN AHMED KHAN AGHA ZUBAIR 42301-7669562-7 AGHA FAQUIR MUHAMMAD 454 42301-9153803-9 EJAZ HUSSAIN 471 35 66 536 468 68 – 536 64 REHAN AHMED KHAN. FAISALABAD NADEEM AHMED BUTT 33301-8963979-5 FAQEER MUHAMMAD 596 49 – 645 596 49 – 645 73 NADEEM AHMED BUTT. P-3 ST. HOUSE NO. QURESHI CHOWK HASHMANI MOHALLAH. KARACHI – – 506 520 471 454 35 66 – – 506 520 65 AGHA ZUBAIR. A-257 PHASE I GULSHAN-E-HADEED. HOUSE NO. HOUSE NO. HOUSE NO. HOUSE NO. HOUSE NO. FAISALABAD MUHAMMAD RAMZAN 33100-2564082-5 MUHAMMAD ASHRAF 468 68 – 470 69 – 539 63 MUHAMMAD RAMZAN. RAWALPINDI NAVEED AHMAD 37405-1218023-7 ABDUL MAJEED 688 100 – 788 688 – 570 60 NAVEED AHMAD. 3 BLOCK-B BAHRO WAL COLONY ABC ROAD. 207 2ND FLOOR ARSHIA HEIGHTS F. HOUSE C-78/1 BLOCK J NORTH NAZIMABAD. HOUSE 180 STREET 3 RABAN COLONY 2. HOUSE A 730/12 F. KARACHI 42201-6545062-3 LATIF UR REHMAN 388 296 – 684 388 296 – 684 91 .No. KARACHI RANA SHAHID AMIN 33100-1137499-1 RANA MUHAMMAD AMIN 445 66 RANA SHAHID AMIN. HOUSE W2/2 UMER STREET REHMAN PARK BHULA CHOWK JOHAR TOWN. 02 SECTOR D II TONSHI 5. 2009 (Rupees '000') Name of Individual / partners / directors Name HAFIZ MUHAMMAD AHSAN IQBAL IMRAN KHALIL 42101-4639491-3 KHALIL AHMED 482 70 – 552 482 70 35202-6817781-1 SHEIKH MUHAMMAD IQBAL 614 45 – 659 614 45 – – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 659 552 ANNUAL REPORT 2009 Annexure . 57 HAFIZ MUHAMMAD AHSAN IQBAL. E-6-1 COUNTRY CLUB APARTMENT 33 STREET PHASE NO. RAWALPINDI MALIK MUHAMMAD SHAHBAZ 35201-9251148-5 MUHAMMAD SADIQ ZIA 509 45 – 554 509 45 – 554 69 MALIK MUHAMMAD SHAHBAZ. 46/10 -A 2 STREET NO. KARACHI JAVED IQBAL 33100-0120287-3 MIAN MANZOOR HUSSAIN 470 69 – 539 41 – 513 62 JAVED IQBAL.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. AREA. 316 E GULSHAN RAVI. E-18/25. AREA. LAHORE MUHAMMAD JAMAL 35202-3817231-9 REHMAT ALI 537 49 – 586 537 49 – 586 NIB BANK LIMITED 74 MUHAMMAD JAMAL. FAISALABAD SYED SHAH NAWAZ AHMED 42101-9335201-5 SYED NASEER AHMED 58 – 503 445 58 – 503 67 SYED SHAH NAWAZ AHMED. HOUSE NO. V EXT DHA 34. R 57 SECTOR 14 A SHADMAN NORTH NAZIMABAD TOWN.

LAHORE 83 MUHAMMAD QASIM. 3 FIRST FLOOR HASSAN APARTMENT MISHALMALI ROAD. HOUSE NO. 15 RASHEED STREET SAADI PARK MOZANG 5. STREET NO. FLAT NO. 215 G BLOCK MODEL TOWN. Name & Address of borrower 75 ABDUL KARIM. KARACHI 86 HABIB QURESHI. HOUSE NO. HOUSE NO. HOUSE NO.No. PESHAWAR 90 CHOUDRY UMER RIASAT. 02 MOHALLAH JANAZ CHAH MAIN BAZAR HARBANS PURA 5. HOUSE NO. 593 PIB COLONY. MULTAN 88 ABDUL RAUF.1 92 (Rupees '000') Name of Individual / partners / directors Name ABDUL KARIM 42301-1769483-5 GOHAR REHMAN 444 65 – 509 444 65 – Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. FAISALABAD 85 MUMTAZ AHMED. M II-E 137 SHAN AZARBAD HOUSE STREET NO. STREET NO. HOUSE NO. HOUSE NO. 2 GULSHAN-E-IQBAL 34. 139-A LIAQAT TOWN P. HOUSE NO. 07 STREET NO. MULTAN 78 SYED SOHAIL ASGHER.Annexure . KARACHI 76 MUHAMMAD OWAIS. 3 DHA 34. LAHORE 84 MUHAMMAD JAVED. LAHORE ANNUAL REPORT 2009 92 SALMAN. RAWALPINDI 81 MUHAMMAD NASIR. KARACHI 77 SHAHID HABIB AHMED. 39 MOHAMMADI ROAD SHERSHAH 34. LAHORE 79 TANVEER NABI. 2009 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Total 509 NIB BANK LIMITED NIC No. HOUSE NO. HOUSE NO. D2-26 SAOODABAD MALIR. KARACHI 89 MUHAMMAD ABDUL NASIR. HOUSE NO 2365/1 HASSAN PURA CHOWK SHAH ABBAS VEHARI ROAD. KARACHI 87 MUHAMMAD SHAHID. 5 8 75 SHAH FAISAL COLONY. 7. LAHORE 80 RAJA HUMAYUN IQBAL. HOUSE 49 Z 5A C B 100 AL SANOBER SHER ZAMAN COLONY LALAZAR. HOUSE PLOT C 23 1ST FLOOR KHAIBAN-E-BOKHARI PHASE 6 COMMERCIAL STREET 30 LANE NO. T 3381 SHAD BAGH COLONY OUTSIDE YAKATOOT. KARACHI . 2 MIO COLONY MASOOM SHAH ROAD. KARACHI 91 MALIK TARIQ NADEEM. 27 STREET NO. HOUSE R 739 SECTOR 09 NORTH KARACHI. 318 AI TOWN SHIP. 1 SHAH TOWN RAIWIND ROAD THOKAR NIAZ BAIG. 25-A BLOCK NO.O AYUB RESEARCH. KARACHI 82 MAZHAR NAZAR AWAIS. Principal written off Interest/ Mark-up written off Other Financial Relief MUHAMMAD OWAIS 42101-7500560-9 MUHAMMAD ANWER KHAN 454 66 – 520 454 66 – 520 SHAHID HABIB AHMED 36302-0504749-7 MALIK HUSSAIN AHMED 454 66 – 520 454 66 – 520 SYED SOHAIL ASGHER TANVEER NABI 35202-2498762-5 GHULAM NABI 484 60 – 544 35202-8772369-9 HAJI ASGHER ALI SYED 477 59 – 536 477 484 59 60 – – 536 544 RAJA HUMAYUN IQBAL 37405-2879955-5 AURANGZEB 463 68 – 531 463 68 – 531 MUHAMMAD NASIR 42201-0369476-3 MUHAMMAD YOUSUF 454 56 – 510 454 56 – 510 MAZHAR NAZAR AWAIS 34601-2212046-5 NAZAR MUHAMMAD GONDAL 495 37 – 532 495 37 – 532 MUHAMMAD QASIM 35201-5492340-3 ABDUL RAZZAQ 581 46 – 627 581 46 – 627 MUHAMMAD JAVED 33100-0964491-3 MUHAMMAD ASHRAF 626 51 – 677 626 51 – 677 MUMTAZ AHMED 35301-8071922-1 MANZOOR HUSSAIN 501 42 – 543 501 42 – 543 HABIB QURESHI 42501-9945379-7 MUHAMMAD AQIL QURESHI 545 40 – 585 545 40 – 585 MUHAMMAD SHAHID 36302-6951108-7 MUHAMMAD RAMZAN 533 49 – 582 533 49 – 582 ABDUL RAUF 42201-3672290-9 ABDUL QAYUM 454 66 – 520 454 66 – 520 MUHAMMAD ABDUL NASIR 17301-1641644-1 MUHAMMAD SHAFIQ 474 65 – 539 474 65 – 539 CHOUDRY UMER RIASAT 42201-0597206-1 CHUDARY RIYAST ALI 490 82 – 572 490 82 – 572 MALIK TARIQ NADEEM 35202-9737183-7 MALIK SHAH DIN 695 116 – 811 695 116 – 811 SALMAN 42301-3048805-9 AURANGZAIB 474 74 – 548 474 74 – 548 S.

SADAAT COLONY SHAH FAISAL COLONY. 2009 (Rupees '000') Name of Individual / partners / directors Name SHAH DIN BHATTI 35201-0248305-5 MERAJ DIN 740 124 – 864 740 124 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 864 ANNUAL REPORT 2009 Annexure . 155 B FAISAL TOWN.2 A BLOCK MODEL TOWN. E 27/13 A STREET NO. 8 MOHALLA GHOSIA COLONY WALTON ROAD CANTT 5. HOUSE NO. LAHORE TANVEER ALI 35201-1597465-7 ABDUL RUB SAJID 688 60 – 748 688 60 – 748 104 TANVEER ALI. FLAT 5 PLOT 9/9 STREET 3 DEHLI COLONY 3. KARACHI MIAN MUHAMMAD AKRAM 35201-7364779-3 AHMED ALI 591 46 – 465 80 – 545 98 MIAN MUHAMMAD AKRAM. MULTAN MUHAMMAD TAYYAB 36302-8580570-7 MUHAMMAD ASHRAF 48 – 567 519 48 – 567 101 MUHAMMAD TAYYAB. 93 SHAH DIN BHATTI.S. 62-E/1 STREET NO. P 46 STREET 5 MOHALLAH ASLAM GUNJ TEZAB MILL ROAD 36. HOUSE NO. HOUSE NO. KARACHI NAUSHAD ALAM 42101-6812966-5 ABDUL REHMAN 465 80 – 545 65 – 514 97 NAUSHAD ALAM. HOUSE NO. HOUSE NO. LAHORE IMRAN ALI 42201-0456113-7 SYED NOOR MOHAMMAD 757 71 637 591 46 – 637 99 IMRAN ALI. 7-B GULISTAN COLONY. HOUSE NO. MULTAN MUHAMMAD IQBAL HAKIM ALI 550 51 – 601 550 51 – 601 106 MUHAMMAD IQBAL.E.H. HOUSE 494 A/H STREET 8 SHAHDAB COLONY SURAJ MIANI ROAD. RAWALPINDI FAYYAZ AHMED ABBASI 61101-8210927-3 HAJI MUHAMAD RIAZ 531 66 – 597 531 – 599 95 FAYYAZ AHMED ABBASI. Name & Address of borrower NIC No. 73 . 3 STREET 34 AKRAM PARK DHOBI GHAT BAGHBAN PURA. 11 TARIQBAD. H-467.1 S. 6 BOSAN ROAD GULGUSHT COLONY. HOUSE 11 B UPPER PORTION MAIN DOUBLE ROAD F 11/2. HOUSE NO. HOUSE NO. MULTAN ZEESHAN AKRAM 42101-2554607-1 MOHAMMAD AKRAM 641 53 – 694 641 53 – 694 102 ZEESHAN AKRAM.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. 33 STREET NO 6 BLOCK Y NEW MULTAN COLONY.No. KARACHI GUL ZAMAN KHAN 36302-9820738-7 MUHAMMAD NIAZ KHAN 519 – 828 757 71 – 828 100 GUL ZAMAN KHAN. LAHORE RAJA ZAFFAR MEHMOOD 37405-5442968-3 RAJA ABDUL JABBAR 533 66 – 599 533 66 94 RAJA ZAFFAR MEHMOOD. HOUSE E-256 STREET 3-G PIR COLONY WALTON ROAD CANTT. LAHORE 35202-2337773-9 MAHMOOD AHMED 497 83 – 580 497 83 – 580 93 .C. 159-V BLOCK 6 P. 411 STREET NO. FAISALABAD 33100-1553552-3 BASHIR AHMAD 577 71 – 648 577 71 – 648 109 USMAN MAHMOOD. R-544 SECTOR 14-A SHADMAN TOWN NORTH KARACHI. LAHORE MUHAMMAD KHALID 36603-6285593-5 ANAYAT ALI 697 64 – 761 697 64 – 761 105 MUHAMMAD KHALID. ISLAMABAD MOHAMMAD RAFIQ 42201-9133183-9 SHAIKH ALLAH DITA 449 65 – 514 449 66 – 597 96 MOHAMMAD RAFIQ. HOUSE NO. KARACHI MUHAMMAD UMER FAROOQ 42301-9722274-3 MUHAMMAD MUSTAQEEM 500 62 – 562 500 62 – 562 107 MUHAMMAD UMER FAROOQ. FAISALABAD AHSAN UL HAQ 33100-5060935-3 CHUHDARY MUHAMMAD IBRAHIM 454 66 – 520 454 66 – 520 NIB BANK LIMITED USMAN MAHMOOD 108 AHSAN UL HAQ. KARACHI SHAAFI MEHMOOD 35202-9426847-1 747 63 – 810 747 63 – 810 103 SHAAFI MEHMOOD. RANA STREET CHUNGI NO.. PLOT SC 20 FLAT 14 AL FAZAL SQUARE BLOCK H NORTH NAZIMABAD 34.

P 738 STREET 2 MUGHAL PURA 1 CHOWK JAMILABAD SHEIKHUPRA ROAD. FLAT NO. HOUSE E .1 94 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. FLAT NO. MULTAN 125 MOHAMMAD SABIR. Principal written off Interest / Mark-up written off Other Financial Relief BILAL AHMAD KHOKHAR 35202-1065191-1 ZAMEER AHMAD 832 407 – 1. Name & Address of borrower 110 ASGHAR BAIG. NO. C . 1/40 VILAYATABAD MANGOPIR ROAD. LAHORE 120 REHMAN WAHEED. HOUSE NO. LAHORE 116 ABDUL GHAFFAR.291 216 – 1. 255 STREET NO. 6 NIZAM ABAD KOT KHAWAJA SAEED 5. 14. LAHORE 112 DAVID WILLIAM MOURE. HOUSE NO. 2911 STREET NO. M-C 1441 AZEEM PORA GREENTOWN. 201 FANCY HEIGHTS BLOCK B.239 832 407 – 1. HOUSE NO. FAISALABAD 114 ZAFAR SHAH. HOUSE 17 E/2 OFFICERS COLONY. 212-111 DIJKOT ROAD SIR SYED TOWN. LAHORE 113 MUHAMMAD NADEEM SABIR. ISLAMABAD 115 MALIK ABDUL GAFAAR.507 1. 3 GAZAFI ROAD MALIK PARK 5. MULTAN 122 MUHAMMAD SAEED. LAHORE 111 BILAL AHMAD KHOKHAR.291 216 – 1. FLAT NO. LAHORE 121 KHALID MEHMOOD YAZDANI. BHAYANI HEIGHTS BLOCK 4-A GULSHAN-E-IQBAL.No. PESHARWARIAN STREET HOUSE NO. KARACHI 118 TAHA BIN ABU TALHA. HOUSE NO. KARACHI 124 TARIQ ASHFAQ RAO. 2 STREET 1 ALI ST. 20 GHOUSIA COLONY WALTON ROAD.Annexure . 1 4TH FLOOR THE MALL PLAZA SADDAR NEAR GPO. 2009 (Rupees '000') Name of Individual / partners / directors Name ASGHAR BAIG 35202-5324352-3 AKRAM BAIG 715 116 – 831 715 116 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Total 831 NIB BANK LIMITED NIC No. ST. KARACHI ANNUAL REPORT 2009 126 MUHAMMAD ARIF. HOUSE 410/W 7-H GULLI BUNJARAN WALI I/S PAK GATE. CHA JAMUN WALA NEW SAMAN ABAD. KARACHI 117 KHURRAM BHATTI. KARACHI 119 WASEEM AHMED. J-28.507 MUHAMMAD ARIF 35202-2585511-9 CHUDHARY AHMAD DIN 676 113 – 789 676 113 – 789 S. 2 MAIN BAZAR SADDIQUE COLONY RAVI ROAD TIMBER MARKET. LAHORE .482 2ND FLOOR OPP MOHAMMADI GENERAL STORE WALI GALI MEHMOODABAD NO. HOUSE NO.239 DAVID WILLIAM MOURE 35202-2429078-3 TOMS WILLIAM 460 49 – 509 460 49 – 509 MUHAMMAD NADEEM SABIR 33100-2533425-1 SABIR ALI 742 68 – 810 742 68 – 810 ZAFAR SHAH 11101-8863970-3 GULL WALI SHAH 554 49 – 603 554 49 – 603 MALIK ABDUL GAFAAR 35202-6965761-5 MALIK MUHAMMAD ALI 545 40 – 585 545 40 – 585 ABDUL GHAFFAR 42501-7833716-3 NOOR MUHAMMAD SHEIKH 660 61 – 721 660 61 – 721 KHURRAM BHATTI 42301-8849740-3 YAQOOB BHATTI 526 49 – 575 526 49 – 575 TAHA BIN ABU TALHA 42201-0795202-9 ABU TALHA 607 49 – 656 607 49 – 656 WASEEM AHMED 35202-8395421-9 MUSHTAQ AHMED 552 48 – 600 552 48 – 600 REHMAN WAHEED 35202-2767399-5 MUHAMMAD WAHEED 509 37 – 546 509 37 – 546 KHALID MEHMOOD YAZDANI 36302-0703135-5 ZAFAR ALI ASIM 454 66 – 520 454 66 – 520 MUHAMMAD SAEED 33100-2925945-7 ABDUL RAUF 449 65 – 514 449 65 – 514 SYED MURTAZA ABBAS 45203-3879063-1 SYED NAYAAB HUSSAIN 454 66 – 520 454 66 – 520 TARIQ ASHFAQ RAO 36302-3330524-3 RAO ASHFAQ ALI KHAN 673 98 – 771 673 98 – 771 MOHAMMAD SABIR 42401-4649747-1 EIDOO MASTER 1. P-149-A SCHEME NO. HOUSE 7 STREET 8 QURESHI MUHALLAH MUZANG. 2.26. FAISALABAD 123 SYED MURTAZA ABBAS. 912-D MOHALLAH SUTTER MANDI ANDROON LOHARI GATE. HOUSE NO. SCHEME 33 GULZAR-E-HIJRI 34.

090 1.B.145 1.073 145 MUHAMMAD LAIQUE. LAHORE 43 – 511 468 43 – 511 136 FOZIA KAUSAR. 968/9 STREETNO.048 97 – 1. HOUSE NO. 1 C BILAL COLONY SABZAZAR B BLOCK. KARACHI IMRAN WAHEED UDDIN SIDDIQUI AURANG ZAIB 35201-7373115-1 MALIK MUHAMMAD YASEEN 557 56 – 613 42301-8890584-9 WAHEED UDDIN SIDDIQUI 444 61 – 505 82 – 572 131 IMRAN WAHEED UDDIN SIDDIQUI. LAHORE HASEEB UR REHMAN 35202-7393764-9 MUHAMMAD IBRAHIM CHAUDHRY 790 66 – 856 790 66 – 856 139 HASEEB UR REHMAN. HOUSE NO. 2009 (Rupees '000') Name of Individual / partners / directors Name AZHAR FAREED MUGHAL 35202-7327444-3 NOOR MUHAMMAD MUGHAL 984 160 – 1. 3 QADIR ABAD TAREEN ROAD. AREA ARCADE MADINA BUILDING.S. 945-E SIDDIQUI STREET STREET 2 NADRA ABAD COLONY BEDIAN ROAD CANTT.006 84 – 1. K 283 K AREA KORANGI NO.H. LAHORE SYED MUDASIR ALI GOHAR 35202-9105898-7 SYED SIBTUL HASSAN 596 46 – 557 56 – 613 133 SYED MUDASIR ALI GOHAR. STREET NO. KARACHI 444 61 – 505 132 AURANG ZAIB. 8 STREET NO.1 127 AZHAR FAREED MUGHAL. 5 NEAR IQBAL RESTURANT. KARACHI 42201-5195322-7 MUHAMMAD AHMED 645 108 – 753 645 108 – 753 95 .No. 27 MODEL COLONY MALIR. B-29 REHMAN HEIGHTS RANDLE ROAD. Name & Address of borrower Annexure . LAHORE 49 48 – – 648 635 599 587 49 48 – – 648 635 137 ABID HUSSAIN. KARACHI ADNAN KHAN 41304-3544777-9 MUHAMMAD BASHEER 700 117 – 817 700 117 – 1. LAHORE RAJA KHALID ZAMEER KHAN FOZIA KAUSAR ABID HUSSAIN 35202-6427114-9 ABDUL HAMEED 35202-7406585-0 QASIM MIRAZ DIN 599 587 35200-1409576-5 RAJA MUHAMMAD ZAMEER 468 97 – 1. ST. 36 STREET / MOHALLAH NO. 34. KARACHI MUHAMMAD SHAKEEL 42101-0481083-7 MUHAMMAD SIDDIQUE 490 82 – 572 490 – 817 130 MUHAMMAD SHAKEEL.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. S. MULTAN RANA MUHAMMAD FAHEEM 36302-8031454-5 GHULAM MURSALEEN 1. MULTAN TONY ALBERT CHAPPELL 36302-0358071-1 RANA MOHAMMAD SALEEM 479 40 – 519 479 40 – 519 143 TONY ALBERT CHAPPELL. HOUSE NO. HOUSE 8 STREET 9 ABDUL ELLAHI ST. HOUSE NO. MULTAN AMIR WASEEM ABDUL GABAR 726 61 – 787 726 61 – 787 141 AMIR WASEEM.672/3 2ND FLOOR HUSSAINABAD F.073 936 137 – 1. 1.006 84 – 1. 883/F. HOUSE NO.143 980 163 128 SHARIQ PASHA SHAMSI. FAISALABAD 33100-7318037-7 SHER MUHAMMAD 936 137 – 1. SHAH FAREED CHOWK. P 140 STREET 10 4 AHMED ABAD HASHMAT CHOWK. SS 2B MAIN SUNSET BOULEVARD PHASE 2 DHA.144 ANNUAL REPORT 2009 NIC No. LAHORE MUHAMMAD FURQAN 36302-9330946-3 ATTA UR REHMAN 498 40 – 538 498 40 – 538 140 MUHAMMAD FURQAN. E-590. LAHORE SHARIQ PASHA SHAMSI 42101-1179594-3 MOHAMMAD ATIQ SHAMSI 980 163 – 1. KARACHI 42301-7798203-3 HENRY JAMES CHAPPELL 460 59 – 519 460 59 – 519 NIB BANK LIMITED MUHAMMAD ZAFAR ULLAH MUHAMMAD LAIQUE 144 MUHAMMAD ZAFAR ULLAH. MULTAN ROAD. 2 D BLOCK U NEW MULTAN 13. STREET NO. NO.145 135 RAJA KHALID ZAMEER. FLAT 671. LAHORE NASEEM SHAH 17301-9804214-9 HASHIM KHAN 1. LAHORE MUHAMMAD WAHEED CHAUDHRY 37405-0657463-9 138 MUHAMMAD WAHEED CHAUDHRY. 1 TAAL WALI GALI NEAR DOBI GHAT DARS BAREY MAIN LINK ROAD MUGHAL PURA. HOUSE NO.143 129 ADNAN KHAN.E.048 642 596 46 – 642 134 NASEEM SHAH. A-23 SHEET NO. 529 A TAJ PURA SCHEME LDA. 2 NADRAABAD BAIDIYAN ROAD CANTT. HOUSE NO. HOUSE NO. HOUSE NO.2 JOHAR TOWN. 7 BLOCK U NEW MULTAN P.144 984 160 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 1. I/1219 KOOCHA CHABAK SAWARAN RANG MAHAL.090 142 RANA MUHAMMAD FAHEEM. 161/C COMMERCIAL AREA P.C. 18-C. HABIB GUNJ. HOUSE 746 L BLOCK JOHAR TOWN.

311 10.172 29.804 11..974 26. KARACHI 152 SYED TAHA HUSSAIN JAFFERY. 3RD FLOOR.531 758 58.656 135. FAISALABAD & 4-T GENERAL BUS STAND. 6/D.318 SHAHZAD KHOKHER 37405-4162937-7 JAMES KHOKHER 464 78 – 542 464 78 – 542 NADEEM ABBAS 35202-9730087-1 SHAIKH NIAZ ALI 578 96 – 674 578 96 – 674 MUHAMMAD SALEEM JIWANI 42101-6294028-5 MUHAMMAD HAROON JIWANI 635 106 – 741 635 106 – 741 EJAZ AHMED 42201-0489303-1 MUHAMMAD AZAD 692 94 – 786 692 94 – 786 SYED TAHA HUSSAIN JAFFERY 42101-1372878-5 ALI ATHAR HUSSAIN JAFFERY 561 – – 561 561 – – 561 36302-0458568-3 36302-3799833-7 36302-9279957-9 36302-7537877-7 36302-3953552-9 36302-0458520-5 36302-9514374-1 35202-2600141-9 35202-2875590-9 35201-1406276-5 35202-8920585-5 33100-0638312-5 MIRAJ DIN QURESHI MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD AKRAM CHAUDHARY MUHAMMAD NAZIR AHMED KHAWAJA GHULAM DASTGIR KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD ABDULLAH KHAWAJA MUHAMMAD ABDUL REHMAN JAMI KHAWAJA MUHAMMAD HUSSAIN KHAWAJA MUHAMMAD ALI KHAWAJA MUHAMMAD MANSOOR KHAWAJA MUHAMMAD USMAN MR.H. 101 FIRST FLOOR BLOCK 3-E NAZIMABAD NO.366 601 2. MANTHAR METRO.276 12. NEW GARDEN TOWN.656 100.K CHEEMA CH. MULTAN CANTT. MASROOR AHMED KHAN AZHARUL HAQ BUTT TASAWARUL HAQ BUTT TANVEER UL HAQ BUTT MIAN MUHAMMAD AKRAM MIAN IKRAM MAHMOOD MIAN JAWAD AKRAM 34603-4526639-7 34603-2458612-5 35201-5950489-5 35201-1330550-3 35201-1355003-5 35201-1355027-9 42201-9205530-1 42301-7788543-5 42301-1608217-7 35202-2875590-9 35201-1406276-5 35202-8920585-5 CH. 17 34. 3RD FLOOR.947 58. P-001 IQRA COMPLEX GULISTAN-E-JOHAR BLOCK NO. Name & Address of borrower 146 MUHAMMAD FAROOQ.867 754 2.803 69.960 46. MABOOD QURESHI MIAN MUHAMMAD AKRAM MIAN IKRAM MAHMOOD MIAN JAWAD AKRAM MUHAMMAD YASIN NAZIR KHAWAJA GHULAM DASTGIR KHAWAJA MUHAMMAD ABDULLAH KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD ABDULLAH 4 52. 3 LALKURTI. 6272. HOUSE 48 STREET 1 LALAZAR COLONY BAGHT PURA SHAD BAGH.001 154. HOUSE NO. L-1950 INDUS ROAD NO.000 9. KARACHI 153 MEHR DASTGIR SPINNING MILLS LIMITED.448 241 – 1.000 9.492 – 81. 12 ALMAS COLONY SIDDIQUIA COLONY NOOR ROAD BADAMI BAGH.489 21.276 2.492 – 21. SIALKOT 158 SYED BHAIS LIGHTING LIMITED 200. 3.886 6.531 758 11.689 1. NO. 2009 (Rupees '000') Name of Individual / partners / directors Name MUHAMMAD FAROOQ 42201-7061810-3 ABDUL JABBAR 1. 3. 18 ST.241 32. ZAHEER AHMED KHAN MR. FLAT 606 BLOCK B 6TH FLOOR PLOT 77-78-GH SHAHNAWAZ GARDEN QASIM ROAD GARDEN WEST. FAISALABAD 157 RECTO INDUSTRIES (PRIVATE) LTD.E. PRTC DEPOT. LAHORE 155 BALAJ TEXTILE MILLS (PRIVATE) LIMITED ROOM NO.161 157 – 1.172 S.947 58.161 157 – 1.374 34. LAHORE 156 MINTHAR MOTORS. SHAHEED YOUNAS DASTIGIR ROAD.C. NEW GARDEN TOWN. SHAHEEN ARCADE.172 – 38.159 4 6. BOX NO. IMTIAZ AHMED CHEEMA CH.927 – 2.241 32.1 96 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.694 KHAWAJA GHULAM DASTGIR 146. AREEBA APPARTMENT FLAT NO. LAHORE 150 MUHAMMAD SALEEM JIWANI. Principal written off Interest/ Mark-up written off Other Financial Relief BINYAMEEN 35202-0674578-5 MUHAMMAD SULEMAN 1.761 – 2. M. HOUSE NO.. P. RAWALPINDI 149 NADEEM ABBAS.893 SHAHZAD KOUSER CHEEMA DANISH IMTIAZ CHEEMA HASSAN IFTIKHAR CHEEMA MR.454 5.172 – 163.448 241 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Total 1.689 NIB BANK LIMITED NIC No.S. LAHORE 159 MEKRAN FISHERIES (PRIVATE) LTD.318 1. LAHORE . KARACHI 151 EJAZ AHMED.No. NASEERUDIN ROAD. B-2/B-4. MULTAN 154 ART VISION.014 – 72. FEROZPUR ROAD. KARACHI 74000 ANNUAL REPORT 2009 160 IHSAN YOUSUF TEXTILE MILLS ROOM NO.797 59.. 3.797 47.492 8. LAHORE 148 SHAHZAD KHOKHER. MANSOOR AHMED KHAN MR.771 6.O.014 – 192.963 5. KARACHI 147 BINYAMEEN. IFTIKHAR CHEEMA KHAN BHADUR BASHIR AHMED KHAN ZAHEER AHMED KHAN ZAHEER AHMED KHAN MUZAFAR DIN BUTT MUZAFAR DIN BUTT MUZAFAR DIN BUTT MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD AKRAM 71.236 754 2.243 16 601 2.960 46. HOUSE 117 C 2ND FLOOR BLOCK 2 P. FISH HARBOUR.312 10.Annexure . DASKA ROAD. FLAT NO. GHULAM MUHAMMAD ABAD.974 9. SHAHEEN ARCADE.

1 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief – S.963 – 162 N S TRADERS.579 719 Annexure .636 94.964 – 16.014 399.224 208.562 – 1.999 1.298 161 M. Total 3.798 2. OFF 15-19 MARINE CENTER. KHI ABDUL NAJEEB 37405-2356179-7 ABDUL NAQEEB 14. BARKAT PLAZA.576 93.No. MALIK CO.541 97.ANNUAL REPORT 2009 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.079 719 – 14.. 2009 (Rupees '000') Name of Individual / partners / directors Name MALIK IMTAIZ AHMED 42301-3653584-5 MALIK MIAN MUHAMMAD 14.014 834. 101. BLK 2 CLIFTON.562 642. RAWALPINDI 1. SADDAR.574 97. Name & Address of borrower NIC No.131 NIB BANK LIMITED 97 . M.

Enabling success Realising dreams Consolidated Financial Statements For the year ended December 31. 2009 .

except for 24 branches. evaluating the overall presentation of the above said statements. The consolidated financial statements of the Bank for the year ended 31 December 2008 were audited by another firm of chartered accountants whose report dated 7 March 2009. We conducted our audit in accordance with the auditing standards as applicable in Pakistan. for the year then ended. These financial statements are responsibility of the Bank’s management. which have been audited by us. In our opinion the consolidated financial statements present fairly the financial position of NIB Bank Limited as at 31 December 2009 and present fairly. We believe that our audit provides a reasonable basis for our opinion. on a test basis.Auditors Report to the Members We have audited the annexed consolidated financial statements comprising consolidated balance sheet of NIB Bank Limited (“the Bank”) as at 31 December 2009 and the related consolidated profit and loss account. expressed a modified opinion thereon. An audit includes examining. The opinion on the consolidated financial statements for the year ended 31 December 2008 included an emphasis of matter paragraph regarding presence of significant inherent uncertainty in the assumptions underlying the value in use calculations of cash-generating units (CGUs) to which goodwill has been allocated for impairment testing as at 1 October 2008. Our responsibility is to express our opinion on these financial statements based on our audit. evidence supporting the amounts and disclosures in the above said statements. consolidated statement of comprehensive income. its cash flows and changes in equity for the year then ended in accordance with the approved accounting standards as applicable in Pakistan. An audit also includes assessing the accounting policies and significant estimates made by management. Chartered Accountants Amir Jamil Abbasi ANNUAL REPORT 2009 NIB BANK LIMITED 101 . These standards require that we plan and perform the audit to obtain reasonable assurance about whether the above said statements are free of any material misstatement. consolidated cash flow statement and consolidated statement of changes in equity together with the notes forming part thereof. Date: 26 February 2010 Karachi KPMG Taseer Hadi & Co. as well as. These financial statements include unaudited certified returns from the branches. the results of its operations.

NIB Bank Limited Consolidated Balance Sheet As at December 31.457 1.110 38.999.344.669 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 17 18 19 20 1.450 868.381.212 NET ASSETS REPRESENTED BY : Share capital Share deposit money Reserves Accumulated loss Deficit on revaluation of assets .997 6.084 23.164 6.271 12.436 (472.275 3.979) 41.304 176.838.600 – – 4.899.538.347.406 3.533.437.437.045) 38.162 (2.457 28.135.707.798.207 62.620 28.523.834.878 3.092 3.424.850 28.894 (7.574.391.193 3.628 80.271 – 8.019 12.684 5.885.621 31. 2009 Note 2009 (Rupees '000') ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 8 9 10 11 12 13 14 15 16 8.684 (8.681. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director 102 NIB BANK LIMITED ANNUAL REPORT 2009 .459.117 9.979 84. Khawaja Iqbal Hassan President / Chief Executive Francis A.228 3.000.793) 40.000 8.081.326.496.406 206.272.1 form an integral part of these consolidated financial statements.135.651.109.464.887 59.382.366 103.185 6.669.200 – – 5.117 41.272.411.820.696.162 165.net 22 40.368 138.684.949.357.729) 41.227 2008 21 23 CONTINGENCIES AND COMMITMENTS 24 The annexed notes from 1 to 43 and annexure .997.604.021.432.347.365 92.543.

958 (83.646 440.148 1.1 form an integral part of these consolidated financial statements.833.000 43.492.229 (122.720.924.37 15.11.169) (3.493) (9.493. commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized loss on revaluation of investments classified as held-for-trading Other income Total Non Mark-up / Interest income NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Workers welfare fund Impairment of goodwill Impairment of other intangible assets Total Non Mark-up / Interest expense Share of profit / (loss) of associates Extraordinary / Unusual items PROFIT / (LOSS) BEFORE TAXATION Taxation .896 126.167.393) 796. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director ANNUAL REPORT 2009 NIB BANK LIMITED 103 .305) (3.010) 65.455.943 (1.002.886) 98.657 187.632 10.Deferred PROFIT / (LOSS) AFTER TAXATION Accumulated (loss) / profit brought forward Transfer to statutory reserve Right shares issue cost (net of tax) ACCUMULATED LOSS CARRIED FORWARD Basic / diluted earnings / (loss) per share (Rupees) 11.271 – 1.Prior years .829.13 18.613.499 194.166 573.372 9.867 – 1.2 25 26 12.505 575.793) (3.820 6.566 8.981 (4.451.5 11.775.382.211 325.722 (8.179.729) 0.697 14.382.894) 6. Khawaja Iqbal Hassan President / Chief Executive Francis A.705 67.793) (138.126 – 20.278.051 5.Current .739 1.710 (4.765 15.022 772.NIB Bank Limited Consolidated Profit and Loss Account For the year ended December 31.741.008.637 8.066 4.174 1.448) (7.040.310 (149.641 329.214 – – 5.097) 17.357.137.943.327 72.049) – (13.824 322.676 6. 2009 Note 2009 2008 (Rupees '000') Mark-up / Return / Interest earned Mark-up / Return / Interest expensed Net Mark-up / Interest Income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net Mark-up / Interest income after provisions NON MARK-UP / INTEREST INCOME Fee.552.801.250 (2.640 12.549) 59.502.685.210) (54.754.600 – – (8.144) 1.839 524.335.462 182.231 953.801 5.081.398 1.608 4.246.23) 27 28 29 30 31 31 31 The annexed notes from 1 to 43 and annexure .177.

1 form an integral part of these consolidated financial statements.493.179. 2000 and BSD Circular 10 dated July 13. 2009 2009 2008 (Rupees '000') Profit / (Loss) after taxation for the year Other comprehensive income Total comprehensive income for the year 1.722 (9.393) Surplus / deficit on revaluation of “Available . 1984.NIB Bank Limited Consolidated Statement of Comprehensive Income For the year ended December 31. 2004. and the State Bank of Pakistan vide its BSD Circular 20 dated August 4.722 – 1. The annexed notes from 1 to 43 and annexure . Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director 104 NIB BANK LIMITED ANNUAL REPORT 2009 .for-Sale” securities is presented under a separate head below equity as “Surplus / deficit on revaluation of assets” in accordance with the requirements specified by the Companies Ordinance.393) – (9. Khawaja Iqbal Hassan President / Chief Executive Francis A.179.493.

508) 59.040.986) (13.286 3.734 90.354) 7.008.505 67.697 322.884.402 (4.274.706.807) (2.931 (20.552 (3.613.214 (573.653 (275.285 (678.323 (7.126) (1.027) (216.675 (7.217.075 (194.049 13.000 220.954 (12.061) 223.445) (652.030) (Increase) / decrease in operating assets Lendings to financial institutions Held-for-trading securities Advances Other assets (excluding advance taxation) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net Investments in available-for-sale securities Net Investments in held-to-maturity securities Net Investments in associates Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed off Net cash (used in) / from investing activities 142.361.010 329.956.269.012.211.259.626) (68.131.211 1.110) 8.981.062 17.311) (21.116) (2.536.628) 204.NIB Bank Limited Consolidated Cash Flow St a tement For the year ended December 31.310) (35.751 350.646) (13.552.127) 6.370.532) 501.999 (10.196.005 149.886) (187.896 (182.327) 1.855 15.986) (45. 2009 2009 2008 (Rupees '000') CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) before taxation Dividend income Adjustments for non-cash items Depreciation Amortization Workers welfare fund Gain on sale of securities Gain on sale of property and equipment Provision against non-performing loans and advances Bad debts written off directly Fixed assets written off Intangibles written off Impairment of intangible assets Impairment of goodwill Impairment of investment in associates Unrealized loss on revaluation of investments classified as held-for-trading Provision for diminution in the value of investments Other provisions / write offs Share of (profit) / loss of associates 1.895 – 575.123 38.229 (772.490) (21.553) 524.641 14.345) 29.214) (956.439) (144.323 308.978) 28.348.833.372 76.000) 181.803 (308.507 (26.043 298.836) 540.637 1.193 ANNUAL REPORT 2009 NIB BANK LIMITED 105 .867) 642.050 485 43.777.263 (834.649) 5.398 1.705 6.526.725.666 6.827) (112.871.959.147.312 – – – 20.756) (26.097 2.569 468.

600) – (75) (83.469 The annexed notes from 1 to 43 and annexure .000 (450) – (7.518.999.225.293.959 3.413.441) 2. Khawaja Iqbal Hassan President / Chief Executive Francis A.766) – (85.NIB Bank Limited Consolidated Cash Flow St a tement For the year ended December 31.639. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director 106 NIB BANK LIMITED ANNUAL REPORT 2009 .1 form an integral part of these consolidated financial statements.458 10.000.989) 12.991. 2009 Note 2009 2008 (Rupees '000') CASH FLOWS FROM FINANCING ACTIVITIES Net (payments) / receipts against sub-ordinated loans Share deposit money Dividend paid Right shares issue cost Payment of lease obligations Net cash (used in) / from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 33 (1.225.490 10.574 (2.469 12.200 12.176) 15.

606. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director ANNUAL REPORT 2009 NIB BANK LIMITED 107 . 2009 Reserves Capital Share Share deposit Share capital money premium Statutory reserve (Rupees '000') Revenue General reserve Accumulated profit / (loss) Total Balance as at December 31.000.874 8.594 5. recorded directly in equity Issue of share capital Right shares issue cost (net of tax) 28.606.472 – – – (8.000) Transfer to statutory reserve Balance as at December 31. recorded directly in equity Shares issued under scheme of amalgamation Share deposit money 22. 2009 – 40.303 – 12.179.162 Balance as at December 31.000.081.436 12.210 212.179.381.393) 6.246.448) (138. 2007 Total comprehensive income for the year Loss after taxation for the year Transaction with owners.874 – 7.793) 14.618 – – – 74.600 23.000 (12.594 – – – 5.378 – – – – – (9.000.000.382.419.000 12.1 form an integral part of these consolidated financial statements.000.472 – (54.026.303 – 6.472 796.534.448) – 41.493.246.437.017.448) (54.000.722 1.210) (7. 2008 Total comprehensive income for the year Profit after taxation for the year Transaction with owners.448) (54.968 – 639.804 – – – – 5.026.437.618 – – – 138.419.271 – – The annexed notes from 1 to 43 and annexure .177 12.722 12.000.177 40.820. Khawaja Iqbal Hassan President / Chief Executive Francis A.000 (12.271 – – – – – 1.000.NIB Bank Limited Consolidated Statement of Changes in Equity For the year ended December 31.744 74.000 12.393) (9.729) – (54.000 7.493.000) – – – – – – 8.000 26.

Limited which in turn is a wholly owned subsidiary of Temasek Holdings.89% interest in Financial and Management Services (Private) Limited by virtue of acquisition and amalgamation of PICIC. 2007 Pakistan In 2007. 2. The Bank is listed on all the stock exchanges in Pakistan and has 223 branches (2008: 244 branches). The amounts are rounded off to the nearest thousand rupees. Subsidiary Companies The subsidiaries consolidated in these financial statements are as follows: Subsidiary Share holding 100% Date of acquisition June 30. BASIS OF PRESENTATION In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. The Bank is a subsidiary of Bugis Investments (Mauritius) Pte. an investment arm of the Government of Singapore.NIB Bank Limited Notes to the Consolidated Financial Statements For the year ended December 31. The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. the Bank acquired interest in PICIC Asset Management Company Limited (PICIC AMC) and PICIC Exchange Company (Private) Limited by virtue of acquisition and amalgamation of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) and PICIC Commercial Bank Limited (PCBL) respectively. 108 NIB BANK LIMITED ANNUAL REPORT 2009 . 2008 passed the resolution to wind up the Company and appointed its liquidator.Chundrigar Road. These consolidated financial statements have been presented in Pakistan Rupees. 1962. STATUS AND NATURE OF BUSINESS The "Group" consists of: Holding Company NIB Bank Limited (the Bank) The Bank is incorporated in Pakistan and its registered office is situated at Muhammadi House. I. which is the Group's functional and presentation currency. The Company has been wound up as of June 30. the State Bank of Pakistan (SBP) has issued various circulars from time to time. 2008 to wind up the Company. The Bank also acquired 95. The Extraordinary General Meeting of the Company held on November 29. 2007 Nature of business Listed / unlisted Country of incorporation Pakistan PICIC Asset Management Company Limited PICIC Exchange Company (Private) Limited Investment Advisory Unlisted and Asset Management Services Dealing in Foreign Exchange Unlisted 100% June 30. Karachi in the province of Sindh. The Bank is a scheduled commercial bank and is principally engaged in the business of Banking as defined in the Banking Companies Ordinance. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. 2009. The Board of Directors of PICIC Exchange Company (Private) Limited resolved at their meeting held on October 30. Permissible forms of traderelated modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. 2009 1.I.

'off-plan'. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance. investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. any interest retained in the former subsidiary will be measured at fair value with the gain or loss recognized in the profit and loss account. 2009) requires accounting for changes in ownership interest by the group in a subsidiary. However. the difference between the carrying amount and fair value is recognised in the income statement. according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28. or at its proportionate interest in the identifiable assets and liabilities of an acquiree. interpretations and amendments to published approved accounting standards that are not yet effective The following standards.1 STATEMENT OF COMPLIANCE These consolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan.Notes to the Consolidated Financial Statements For the year ended December 31. Investment Property (IAS 40) for banking companies till further instructions. on a transaction-by-transaction basis. Amendment to IFRS 2 – Share-based Payment – Group Cash-settled Share-based Payment Transactions (effective for annual periods beginning on or after January 01. 2010). the requirements of these standards have not been considered in the preparation of these consolidated financial statements. The amendment is not relevant to the Group’s operations. while maintaining control. the liability for the dividend is measured at fair value. The SBP vide BSD Circular No. 1984 and the directives issued by the SBP shall prevail. 2009 3. the provisions of and directives issued under the Banking Companies Ordinance. As the Group does not distribute non-cash assets to its shareholders. IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. 1962. The effective dates for these amendments vary by standard and most will be applicable to the Group’s 2010 financial statements. such as apartments or houses. 2009) clarifies the recognition of revenue by real estate developers for sale of units. The International Accounting Standards Board made certain amendments to existing standards as part of its second annual improvements project. Further. 2002 has deferred the applicability of International Accounting Standard 39. before construction is complete.2 3. the Companies Ordinance. to be recognized as an equity transaction. provisions of and directives issued under the Banking Companies Ordinance. 2008. 2009) states that when a Bank distributes non cash assets to its shareholders as dividend. Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40.3 – – – – – ANNUAL REPORT 2009 NIB BANK LIMITED 109 . 1984. this interpretation has no impact on the Group’s financial statements. amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after January 01. IFRIC 15 – Agreement for the Construction of Real Estate (effective for annual periods beginning on or after October 01. 2010: – Revised IFRS 3 Business Combinations (applicable for annual periods beginning on or after July 01. 3. IFRIC 17 – Distributions of Non-cash Assets to Owners (effective for annual periods beginning on or after July 01. If there are subsequent changes in the fair value before the liability is discharged. transaction costs other than share and debt issue costs to be expensed. 2009) broadens among other things the definition of business resulting in more acquisitions being treated as business combinations. Currently effective IFRS requires attribution 3. Accordingly. When the group loses control of a subsidiary. the Companies Ordinance. that is. 1984 and the directives issued by the SBP. These amendments are unlikely to have an impact on the Group’s financial statements. In case requirements differ. any pre-existing interest in an acquiree to be measured at fair value. this is recognised in equity. with the related gain or loss recognised in the profit and loss account and any non-controlling (minority) interest to be measured at either fair value. 1962. Standards. The application of this standard is not likely to have an effect on the Group's financial statements. Amended IAS 27 Consolidated and Separate Financial Statements (effective for annual periods beginning on or after July 01. contingent consideration to be measured at fair value. 10. dated August 26. When the non cash asset is distributed. The application of the standard is not likely to have an effect on the Group's financial statements.

The IASB amended IAS 32 to allow rights. The areas where various assumptions and estimates are significant to the Group's financial statements or where judgment was exercised in application of accounting policies are as follows: 110 NIB BANK LIMITED ANNUAL REPORT 2009 . – – – – 4. This amendment is not likely to have any impact on the Group’s financial statements. The amendments specify that if an entity is committed to a plan to sell a subsidiary. except for the measurement of certain investments and commitments in respect of forward foreign exchange contracts that are stated at revalued amounts / fair values. The amendments resolve diversity in practice regarding attribution of cash-settled share-based payment transactions and require an entity receiving goods or services in either an equity-settled or a cash-settled payment transaction to account for the transaction in its separate or individual financial statements. Improvements to IFRSs 2008 – Amendments to IFRS 5 Non-current Assets Held for Sale and Discontinued Operations – (effective for annual periods beginning on or after July 01. Amendments to IFRIC 14 IAS 19 – The Limit on a Defined Benefit Assets. This amendment is not likely to have any impact on the Group’s financial statements. BASIS OF MEASUREMENT These consolidated financial statements have been prepared under the historical cost convention. income and expenses. then it would classify all of that subsidiary’s assets and liabilities as held for sale when the held for sale criteria in IFRS 5 are met. liabilities. 2010). options or warrants pro rata to all of its existing owners of the same class of its own non-derivative equity instruments. and disclosures for discontinued operations are required by the parent when a subsidiary meets the definition of a discontinued operation. The revision amends the definition of a related party and modifies certain related party disclosure requirements for government-related entities. 5. Minimum Funding Requirements and their Interaction (effective for annual periods beginning on or after January 01. 2011). IAS 24 Related Party Disclosures (revised 2009) (effective for annual periods beginning on or after January 01. This interpretation has no impact on the Group’s financial statements. 2009). It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. including expectations of future events that are believed to be reasonable under the circumstances. This interpretation provides guidance on the accounting for debt for equity swaps. These amendments result in prepayments of contributions in certain circumstances being recognised as an asset rather than an expense.Notes to the Consolidated Financial Statements For the year ended December 31. This interpretation has no impact on the Group’s financial statements. IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on or after July 01. These amendments remove unintended consequences arising from the treatment of prepayments where there is a minimum funding requirement. 2009 of group share-based payment transactions only if they are equity-settled. options or warrants to acquire a fixed number of the entity’s own equity instruments for a fixed amount of any currency to be classified as equity instruments provided the entity offers the rights. 2011). staff retirement benefits (Gratuity) which are stated at present value and certain financial assets that are stated net of provisions. This applies regardless of the entity retaining an interest (other than control) in the subsidiary. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of consolidated financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates that affect the reported amounts of assets. The amendment may result in certain changes in disclosures. 2010). Estimates and judgments are continually evaluated and are based on historical experience. – Amendment to IAS 32 Financial Instruments: Presentation – Classification of Rights Issues (effective for annual periods beginning on or after February 01.

Held-for-trading securities Investments classified as held-for-trading are those which the Group has acquired with an intention to trade by taking advantage of short term market / interest rate movements and are to be sold within 90 days. the Group estimates the recoverable amount of the asset and the impairment loss. industry and sector performance. 24. the Group follows the general provision requirements set out in the Prudential Regulations. Value in use is the present value of future cash flows from the asset discounted at a rate that reflects market interest rates adjusted for risks specific to the asset. changes in technology and operational and financing cash flows. held-to-maturity securities are investments where the management has positive intent and ability to hold to maturity. among other factors. if any.221 million (2008: Rs.2 Impairment Valuation and impairment of available-for-sale equity investments The Group determines that an available-for-sale equity investment is impaired when there has been a significant or prolonged decline in the fair value below its cost. The carrying amount of goodwill at the balance sheet date was Rs. an impairment loss is recognised immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss. the normal volatility in share price. 5. In addition.221 million). the Group evaluates.Notes to the Consolidated Financial Statements For the year ended December 31. its cash flows. The classification of these securities involves management judgment as to whether the financial assets are held-to-maturity investments. including the preparation of cash flow forecasts for periods that are beyond the normal requirements of management reporting and the assessment of the discount rate appropriate to the business. 2009 5. 24. In making this judgment. A reversal of an impairment loss on intangible assets (excluding goodwill) is recognized as it arises provided the increased carrying value does not exceed that which it would have been had no impairment loss been recognized.5. operations in its account and adequacy of security in order to ensure accurate measurement of the provision. If the recoverable amount of an intangible or tangible asset is less than its carrying value. 5.1 Investments Held-to-maturity securities As described in note 6. management also applies subjective criteria of classification and accordingly the classification of an advance may be downgraded on the basis of evaluation of the credit worthiness of the borrower. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. The determination of what is significant or prolonged requires judgment. Impairment of non financial assets (excluding deferred tax and goodwill) Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that the carrying amount may not be recoverable. impairment may be appropriate when there is evidence of deterioration in the financial health of the investee. Available-for-sale securities Investments which are not classified as held-for-trading or held-to-maturity are classified as available-for-sale. If any such indication exists.3 Provision against non-performing advances Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the SBP. Impairment of Goodwill Impairment testing involves a number of judgmental areas which are subject to inherent significant uncertainty. ANNUAL REPORT 2009 NIB BANK LIMITED 111 . For portfolio impairment provision on consumer advances.

2009. Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 6.4 Retirement Benefits The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation are disclosed in note 35. 2009 the Group has changed its accounting policies in the following areas: Determination and Presentation of Operating Segments An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses.6 Income Taxes In making the estimates for income taxes currently payable by the Group. 6. estimates of the Group's future taxable profits are taken into account. Under this method. There is no change in the operating segments being reported as a result of the adoption of IFRS 8 . Comparative information has been re-presented so that it also is in conformity with the revised standard. 2009 5. Since the change in accounting policy only impacts presentation aspects. In making the provision for deferred taxes. 6. including revenues and expenses that relate to transactions with any of the Group's other components. other than changes in certain disclosures.2 to these consolidated financial statements. 2008 (except for the change mentioned in note 6.2 Business combinations Business combinations are accounted for using the purchase method. all owner changes in equity are presented in the statement of changes in equity. identified assets acquired. which became effective as of January 01.Operating Segments. whereas all non-owner changes in equity are presented in the statement of comprehensive income. liabilities and contingent liabilities assumed are fair valued at the acquisition date.3 Revenue recognition Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis. Presentation of Financial Statements The Group applies revised IAS 1 Presentation of Financial Statements (2007). As a result.5 Useful life of property and equipment Estimates of useful life of property and equipment are based on management's best estimate. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill. Where debt securities are purchased at a premium or discount. the management looks at the current income tax laws and the decisions of appellate authorities on certain issues in the past. 5.1 Changes in accounting policies Effective January 01.1 below) and are enumerated as follows: 6.Notes to the Consolidated Financial Statements For the year ended December 31. 5. such premium / discount is amortized through the profit and loss account over the remaining period of maturity using the effective interest rate method so as to produce 112 NIB BANK LIMITED ANNUAL REPORT 2009 . SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these consolidated financial statements are the same as those applied in the preparation of the consolidated financial statements of the Group for the year ended December 31. An operating segment's operating results are reviewed regularly by the CEO. irrespective of the extent of any minority interest. there is no impact on earnings per share.

market surveys and similar investigations destined for the preparation of projects. Under this method. interest rate movements. in the case of investments other than held-for-trading. dealer's margin or are securities included in the portfolio for which there is evidence of a recent actual pattern of short-term profit taking. 6..e. the date that the Group commits to purchase or sell the asset. 2009 a constant rate of return. 6. where necessary. documentation charges and other lease income are recognized as income when they are realized. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity and the Group has the positive intent and ability to hold upto maturity. commission and brokerage income is recognized at the time of performance of the service.5 Investments Investments of the Group. the excess of aggregate lease rentals and the estimated residual value over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease. Unrealized lease income is suspended. Regular way purchases or sales are purchases or sales of investments that require delivery of assets within the time frame generally established by regulation or convention in the market place. held-for-trading and available-for-sale. i. Interest or mark-up recovered on non-performing advances is recognized on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as amended from time to time. Gains / losses on termination of lease contracts. includes transaction costs associated with the investments. i. the unearned income. in accordance with the requirements of the Prudential Regulations issued by the SBP. Initial measurement All “regular way” purchases and sales of investments are recognized on the trade date. Rental income from assets given on operating lease is recognized on time proportionate basis over the lease period. Investments are initially recognized at fair value which. other than investments in subsidiaries and associates are classified as held-to-maturity. Held-for-trading These securities are either acquired for generating a profit from short-term fluctuations in market prices. Dividend income is recorded when the right to receive the dividend is established. Available-for-sale These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities.4 Grants and assistance In terms of Kreditanstalt fur Wiederaufbau (KFW) loan re-lent by the Government of Pakistan (GoP).e.Notes to the Consolidated Financial Statements For the year ended December 31. ANNUAL REPORT 2009 NIB BANK LIMITED 113 . Fee. the Bank was required to bear interest at 11 percent per annum and pay interest to the GoP at 10 percent per annum and transfer the remaining 1 percent per annum margin to a counter part fund to be used by the Bank for financing feasibility surveys. The financing method is used in accounting for income on finance leases and hire purchase transactions.

keeping in view the requirements of the Prudential Regulations issued by the SBP. less any impairment loss recognized to reflect irrecoverable amounts. Available-for-sale Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair value. A decline in the carrying value is charged to the profit and loss account. The break-up value of these equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements.7 Advances Advances including continuous funding system and net investment in finance lease are stated net of provisions. transactions are shown under advances. Any surplus / deficit arising thereon is kept in a separate account shown in the balance sheet below equity and taken to the profit and loss account when actually realized upon disposal or when the investment is considered to be impaired. 6. Provisions comprise of: Specific provision The Group maintains specific provisions for doubtful debts at a level that can reasonably be anticipated. 114 NIB BANK LIMITED ANNUAL REPORT 2009 . In the case of the continuous funding system. Provision for diminution in the value of securities (except term finance certificates) is made for impairment. Gains and losses on remeasurement are included in the profit and loss account. 2009 Subsequent measurement Held-to-maturity These are measured at amortized cost using the effective interest rate method.Notes to the Consolidated Financial Statements For the year ended December 31. Held-for-trading These are measured at subsequent reporting dates at fair value. Investment in Associates Investments in associates are accounted for under the equity method. Gain or loss on sale of investments is included in the profit and loss account for the year. Provision for diminution in the value of term finance certificates is made as per the aging criteria prescribed by the Prudential Regulations issued by the SBP. if any.6 Lendings to / borrowings from financial institutions Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party liability is included in borrowings. Investments in other unquoted securities are valued at cost less impairment losses. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned. Unquoted equity securities are valued at the lower of cost and break-up value. Securities purchased under agreement to resale (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions. 6.

Notes to the Consolidated Financial Statements For the year ended December 31. Assets held under operating lease Operating lease assets are stated at cost less accumulated depreciation and impairment. Assets held under finance lease are stated at cost less accumulated depreciation. In respect of additions and deletions to assets during the year. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods. Repairs and maintenance are charged to the profit and loss account as and when incurred. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability.8 Operating fixed assets Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss. if any. Assets held under finance lease Leasehold land is stated at cost. Advances are written off when there is no realistic prospect of recovery. are taken to the profit and loss account for the year. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value. if any.2 to the consolidated financial statements. Capital work in progress These assets are stated at cost. ANNUAL REPORT 2009 NIB BANK LIMITED 115 . if any. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Group. Gains and losses on disposal of property and equipment if any. depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged upto the month of disposal. Normal repairs and maintenance are charged to the profit and loss account for the year as and when incurred. at the rates given in Note 13. 6.5% against the secured consumer portfolio in accordance with the Prudential Regulations issued by the SBP. Freehold and leasehold land is stated at cost. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases. 2009 General provision The Bank maintains general provision at the rate of 5% against the unsecured consumer portfolio and at the rate of 1. Major repairs and improvements are capitalized and assets so replaced are retired.

Other intangible assets Other intangible assets are recognised separately from goodwill when they are specifically identifiable or arise from contractual or other legal rights. or more frequently when there is an indication that the carrying value of the CGU may be impaired. The useful life of the management rights has been determined. Fair value less costs to sell is the amount obtainable for the sale of the CGU in an arm’s length transaction between knowledgeable. liabilities and contingent liabilities of the acquired entity.10 Sub-ordinated loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Equal monthly contributions are made to the fund by both the Group and the employees at the rate of 10% of basic salary. willing parties. Intangible assets include the value of the brand. Amortization was charged on straight line basis over a period of 10 years. The recoverable amount is the higher of the CGU’s fair value less costs to sell and its value in use. Impairment losses on goodwill are not reversed. CGUs to which goodwill is allocated are tested for impairment annually. Value in use is the present value of expected future cash flows from the CGU. the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to the other assets of the CGU pro-rata on the basis of the carrying amount of each asset in the CGU.Notes to the Consolidated Financial Statements For the year ended December 31. if any.11 Staff retirement benefits Defined contribution plan The Group operates a defined contribution provident fund for all its permanent employees. post-acquisition. and core overdraft / working capital loan relationships and are stated at cost less accumulated amortization and accumulated impairment losses. Amortization is carried out on the straight line method at the rates given in Note 14 to the consolidated financial statements. Goodwill is initially recognised as an asset at cost and is subsequently measured less any accumulated impairment loss. The estimated useful lives are as follows: Brand Core deposit relationships Core overdraft / working capital loan relationships Management rights 5 years 11 years 11 years Indefinite life Management rights were stated at cost less accumulated amortization and impairment losses. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual basis.9 Goodwill and other intangible assets Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s interest in the identifiable assets. Computer software is stated at cost less accumulated amortization and accumulated impairment loss. core deposit relationships. 116 NIB BANK LIMITED ANNUAL REPORT 2009 . if any in PICIC AMC. If the recoverable amount of the CGU is less than its carrying amount. if any. 2009 6. 6. 6. Goodwill is allocated to each cash-generating unit (CGU) expected to benefit from the synergies of the acquisition. to be indefinite. Amortization is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. Impairment losses are charged to the profit and loss account. and their fair value can be measured reliably.

14 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Group intends either to settle on a net basis. The related deferred tax asset / liability is adjusted against the related deficit / surplus. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. The Group recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements. 2009 Defined benefit plan The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years. enacted or substantially enacted at the balance sheet date.13 Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Actuarial gain / loss is recognized using the 10% corridor approach. or to realize the assets and to settle the liabilities simultaneously. Provisions are reviewed quarterly and are adjusted to reflect the current best estimate. Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the balance sheet date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. The Group recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". 6. The Group records deferred tax assets / liabilities using tax rates. Corridor is defined as the greater of 10% of the present value of defined benefit obligations and plan assets. 6.Notes to the Consolidated Financial Statements For the year ended December 31. Eligible employees are those employees who have joined the service of the Bank on or before March 31.12 Taxation Income tax expense comprises current and deferred tax. 6. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity. 2006.15 Dividend distribution Dividend is recognized as a liability in the period in which it is declared. ANNUAL REPORT 2009 NIB BANK LIMITED 117 . Actuarial valuation is carried out periodically using the “Projected Unit Credit Method”. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Provision is made in accordance with actuarial recommendations. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years. that are expected to be applicable at the time of their reversal. 6.

19 Financial instruments All financial assets and liabilities are recognized at the time when the Group becomes a party to the contractual provisions of the instrument. Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which. when the obligation specified in the contract is discharged. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the balance sheet date. Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial statements at committed amounts. 118 NIB BANK LIMITED ANNUAL REPORT 2009 . advances and certain receivables.20 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. 6. cancelled or expired.16 Distributions of bonus shares and other appropriations to reserves The Group recognizes all appropriations. deposits. respectively. Financial assets are derecognized when the Group loses control of the contractual rights that comprise the financial assets. lendings to financial institutions. 6. cash and cash equivalents include cash and balances with treasury banks and balances with other banks. other than statutory appropriations. as a matter of prudence.17 Foreign currencies Transactions in foreign currencies are translated to Rupees at the foreign exchange rates prevailing at the transaction date. which is subject to risks and rewards that are different from those of other segments. Financial assets carried on the balance sheet include cash and bank balances. Assets. 2009 6. 6.Notes to the Consolidated Financial Statements For the year ended December 31. investments. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. Assets against which the constituents have exercised their option to transfer exchange risk to the Group and liabilities for which the Group has exercised its option to transfer exchange risk to the Government. The Group’s primary format of reporting is based on business segments. Financial liabilities are derecognized when they are extinguished i. liabilities. Fair values are obtained from quoted market prices in active markets. are translated at the rates of exchange guaranteed by the Group and the Government. or in providing products or services within a particular economic environment (geographical segment). Financial liabilities include borrowings. is carried forward as unrealized gain in view of the uncertainty associated with its realization. in the period in which such appropriations are approved. bills payable and other payables.21 Segment reporting A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment). Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the balance sheet date. to reserves including those in respect of bonus shares made after the balance sheet date. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. Forward foreign exchange contracts and foreign bills purchased are valued at forward rates applicable to their respective maturities. 6. 1971.18 Cash and cash equivalents For the purposes of the cash flow statement. 6.e. commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15.

6. cash flow.23 Deposits Deposits are initially recorded at the amount of proceeds received. export finance. 2009 6. trade finance.2 Geographical segments The Group operates in Pakistan only. wholesale and service sectors. BASIS OF CONSOLIDATION The assets and liabilities of subsidiary companies have been consolidated on a line by line basis and the carrying value of investment in subsidiaries held by the holding company is eliminated against the shareholders' equity in the consolidated financial statements.24 Earnings per share The Group presents earnings per share (EPS) data for its ordinary shares. ANNUAL REPORT 2009 NIB BANK LIMITED 119 . Small & Medium Enterprises and Commercial It represents all funded and non funded credit facilities.21. Treasury Treasury manages the asset and liability mix of the Bank.21. leasing. These are stated at the lower of the carrying value of the related advances and the current fair value of such assets. and provides customers with products that meet their demands for management of liquidity.Notes to the Consolidated Financial Statements For the year ended December 31. trade. deposit products & transaction services offered by the Bank to Small & Medium Enterprises and Commercial businesses operating in the manufacturing. Consumer and Small Enterprises It represents banking services offered to individual and small businesses through a retail branch banking and alternate distribution network. These banking services include lending. deposits and distribution of insurance products along with other financial products and services tailored for such customers. 6. along with advisory. interest rate fluctuations and foreign exchange risk. 7.1 Business Segments Corporate and Investment Banking It represents seasonal finance. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year. Financial and Management Services (Private) Limited has not been consolidated as it is not material and this investment has been fully provided. 6. guarantees and bills of exchange relating to corporate and commercial customers.22 Assets acquired in satisfaction of claims The Bank occasionally acquires assets in settlement of certain advances. lending. Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. Material intra-group balances and transactions have been eliminated. 6. underwriting and IPO related activities.

887 – 5.324.1 This includes amount held in automated investment plans.638.176 671.357.000 4.983 (3.705 582.00% to 17.4 725.357 1.019 2. This includes special cash reserve at nil return required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme.3 8.3 8.1 8.174. 4. 1962.964) 3.50% (2008:15.964) 868.1 2.887 1. This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme at nil return (2008: 0.4 These includes National Prize Bonds of Rs.560.314.2 10.1 126.40% (2008: 10.621 12.101 711.507 418.648 (3.450 8.681.459.255 million).621 12.590 871. This balance is current by nature and on increase in the balance over a specified amount.684.834.459. 120 NIB BANK LIMITED ANNUAL REPORT 2009 . LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (Reverse Repo) 10. BALANCES WITH OTHER BANKS In Pakistan In current accounts In deposit accounts Outside Pakistan in current accounts Provision against doubtful balances 373.00%) per annum and having maturities upto three months.485 8. interest is received from the correspondent banks at various rates. 10.00% to 20.681.275 8.3 & 10.00%) per annum and having maturities upto one week. CASH AND BALANCES WITH TREASURY BANKS Note 2009 2008 (Rupees '000') In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit accounts With National Bank of Pakistan in local currency current accounts 8.688.217 74. 2009 8.2 These represent unsecured call money lendings to financial institutions carrying mark-up rates ranging from 12. 10.702 9.684 9.1 Particulars of Lendings In local currency In foreign currencies 5.956.97% to 12.000 407.3 These represent repurchase agreement lendings to financial institutions carrying mark-up rates ranging from 11.681.393 3.740 722.90%) per annum.Notes to the Consolidated Financial Statements For the year ended December 31.010 million (2008 : Rs. 7.887 10.233.4 9.759 3.148 1.671 400.000 11.285.459.601.2 8. The current account is maintained under the requirements of Section 22 of the Banking Companies Ordinance.621 10.10% to 13.590.621 – 12.550 3. 9.887 5.2 8.354 901 3.

427 430.1 (a) Investments by types: Held-for-trading securities Units / Certificates of Mutual Funds Ordinary shares / certificates in listed companies / modarabas 11.943 Total Market Treasury Bills Pakistan Investment Bonds 2.7 11.116 500.115.174.327 (20.819 66.953.2 11.380.424.743.101) 32.242.082.6 11.522) 59.15 23 – (126.301 724 21.674) 20.217 4.187.975 4.4 11.733) 59.418) 38.616.326 – (186.416.531.926 – 5.033 123.871 222.754.905 832.961.754.218 – – – 7.421 – 100.261 – – – 37.844 702.572 – – – 38.964.000 2.356 3.825.657 2.392 3.765 13.771 205. INVESTMENTS 11.356 Associates Subsidiary 11.301.295 2.979 (150.420 724 24.330 – 2.342.358 4.4 Securities held as collateral against lendings to financial institutions 2009 Further given as collateral 1.301 724 60.000 5.261 4.664.net of provisions Deficit on revaluation of held-for-trading securities Deficit on revaluation of available-for-sale securities Net Investments 11.182 64.033 123.973) (1.424.751.973) (1.703 8.588.698.8 & 11.652.675 Held by Group Total Held by Group (Rupees '000') 4.501 205.117 – 8.227.951 930.592 – – – – – 38.212 4.936 840.4.678 2008 Further given as collateral 1.023 11.154.592.900 310.441 2.360 11.994. 2009 10.730 – – 66.456 232.102 4.628 ANNUAL REPORT 2009 NIB BANK LIMITED 121 .292.975 – – – 8.304 50.548 million (2008: Rs.413.Notes to the Consolidated Financial Statements For the year ended December 31.831 2.13 &11.879.427 430.124 Available-for-sale securities Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Ordinary shares / Certificates in listed companies / modarabas Ordinary shares of unlisted companies Term Finance Certificates Units / Certificates of mutual funds Held-to-maturity securities Pakistan Investment Bonds Term Finance Certificates 11.000 1.887 6.12 3. 2009 Given as collateral 2008 Given as collateral Note Held by Group Total Held by Group Total (Rupees '000') 11.420 724 33.14 (538.652.234 9.825.366 million).422) 31.120 2.286 421.3 11.765 52.323 4.046. 2009 amounted to Rs.323 4.987.745.925.805.101) 23.280 852.381.071.193 138.8 & 11.906 – – – – – 8.314 (150.786 500.653 – (59.501 (422.848) 38.1 The market value of securities held as collateral against lendings to financial institutions as at December 31.304 50.314 – (210.327 18.000 1.452 4.207 64.117.015.295 2.032 2.193 138.2 11.959.906 9.316.280 852.097.102 4.067 17.000 2.391 66.6 – – – 11.565.174 (558.906 (422.347.217 4.871 222.878. 4.9 11.456 232.592) 8.392.775.771 – 100.796.953.642 Total investments .242.953.614. 11.923.691.385 – 2.900 310.621 10.496.830) 22.052.11 11.5 11.242.2 11.951 4.067 26.311 – 8.683.000 8.135.956.092 138.616.650 – – 25.853 4.315) 20.166.Gross Provision for diminution in value of investments Investments .327 10.775.937 3.052.793.10 4.801.9 4.592 – – – 42.

2.Notes to the Consolidated Financial Statements For the year ended December 31. Market Treasury Bills embody effective yields ranging from 11. 2.496.697 319. 100 million PIB outstanding as at December 31.15 % which are pledged as security.12%) per annum on semi-annual basis with remaining maturities of 1 to 14 years. which was pledged against borrowing from a Company in 2004.191 2.02%) with remaining maturities of 3 to 12 months and Pakistan Investment Bonds carry markup ranging from 8.553.522) 59.501 – (186.683.052.973) (1.9 11.301 724 60.8 11.234 (558.101) 32.000 8.183.net of provisions Deficit on revaluation of held-for-trading securities Deficit on revaluation of available-for-sale securities Net Investments 11.84% to 12.2 11.95% to 14.76% to 12.564.280 784.305 206.2 Market Treasury Bills and Pakistan Investment Bonds are held with the SBP and are eligible for rediscounting.Gross Provision for diminution in value of investments Investments . Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities.765 3.879.796. the Bank has purchased DSCs of Rs.2 11. this amount is appearing as investment in PIBs with a corresponding amount appearing in Borrowings.1 (b) Investments by segments: (Rupees '000') Federal Government Securities Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Fully Paid-up Ordinary Shares & Modaraba certificates Listed Unlisted Term Finance Certificates Listed Unlisted Units / Certificates of Mutual Funds Associates Subsidiary Total investments .638 64.242. No interest is accrued either as income from the PIB or as expense on this borrowing since the filing of the dispute between the Bank and the Company.000 2. the SBP issued Defense Savings Certificates (DSCs) of Rs 5.309 500.000 1.4 11.301.771 million against lost Foreign Exchange Bearer Certificates (FEBCs) to the Bank with 2 years restriction on disposal.217 1.1 This includes Rs.13 & 11.10 11. These certificates carry interest rate of 6.937 8.023 (150.422) 31.501 205. 122 NIB BANK LIMITED ANNUAL REPORT 2009 .979 18.6 11.592.3 In 2007.994.47% (2008: 9.11 11.344 – 8.124 (422.628 11. 11.304 50.421 – 100. 11.713.14 11.3 11.5% per annum. 11.614.15 23 11.938 2. Further.4 These Sukuk Bonds of Liberty Power Tech Limited carry mark-up rate of 3 months KIBOR + 300 bps and have an original maturity of 12 years.5 11. 2009 Note 2009 2008 11.12 42.88% (2008: 5.135.391 66.733) 59. As the lender had failed to return the pledged PIB upon the maturity of the contract period.082.242. 2009.392 7.7 11.559 430.730 million carrying interest rate of 12.420 724 33.94% to 11.

11.Non-Convertible Fazal Cloth Mills Limited Jamshoro Joint Venture Company Limited 11.500. For redemption.790 12.674 – 390 8.146 – 6. 11.398 576.000 50.000 Cost of investment 2009 – – – – – – – – – – – Available-for-sale Abbott Laboratories (Pakistan) Limited Allied Bank Limited Askari Bank Limited Attock Cement Pakistan Limited Awan Textile Mills Limited Bank AL Habib Limited BankIslami Pakistan Limited Berger Paints Pakistan Limited Brother Textile Mills Limited Lafarge Pakistan Cement Limited (formerly Pakistan Cement Limited) Century Paper & Board Mills Limited Clariant Pakistan Limited Samba Bank Limited (formerly Crescent Commercial Bank Limited) Crescent Steel & Allied Products Limited Dewan Farooq Motors Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Fateh Industries Limited 869.184 – – 2008 (Rupees '000') 8.000 1.5.236 1.6 Particulars of investment in Listed Shares / Certificates Number of Shares / Certificates held 2009 2008 – – – – – – – – – – 25.000 180.691 12.093 2 2.000 2.287 – 441.000 450.000 – 50.2 11. the call option can be exercised by PEL upto 100% after three years of the issue date at 1% premium on the issue price.3 These shares were redeemed during the year.943 29.878 390 8.000 9 282.350 – 65.956 2 2.000 240.Notes to the Consolidated Financial Statements For the year ended December 31.456 191.000 6.1 11.500 – 184.225 – – 906.875.750 25.000 198.152 514.5.5.819 – – – – 30.1 These preference shares carry fixed dividend of 9.850 8.225 57. 11.000 50.000 140.220 32.875.326 17.5.2 These preference shares are redeemable upon the exercise of a call option by the company after completion of three years from the issue date.063 – Held-for-trading Adamjee Insurance Company Limited Allied Bank Limited BankIslami Pakistan Limited Fauji Fertilizer Bin Qasim Limited Indus Motors Company Limited Oil and Gas Development Company Limited Pakistan Telecommunication Company Limited Soneri Bank Limited Standard Chartered Bank (Pakistan) Limited The Bank of Punjab ANNUAL REPORT 2009 NIB BANK LIMITED 123 .125 222.5% on cumulative basis payable when and if declared by the Board of Directors.200 39.250 18.467 7. 2009 11.350 1.402 454.550 60.076 40.000 Note Investee Pak Electron Limited (PEL) .3 11.000 9 – – – 944.5.149 27.5.5.000 Total nominal value 2009 2008 (Rupees '000') 6.000 150.336 47.819 – 49.228 – 250.000 825.800 – 139.000 2.436 65.5 Particulars of investment in Cumulative Preference Shares Number of Shares held 2009 2008 625.000.000 5.834 – 13.000 344.000 400.160 87 10.549 10.618 88.000 1.000 – 39.018.920 2.000 100.1 11.000 179.000 – 625.Convertible Loaded Pak Electron Limited (PEL) .750 25.310 87 10.500.250 18.646 447.968 55.

700 * 135.852 – 17.400 908.264 – 27.702 1.067 – 520 12.624 11.573 27.500 146.557 14.134 11.000 200.696 5 – – 5.466 – 42.750 187.016 126.380.894 Karam Ceramics Limited 425.653 79.573 22.693 1 1.772 426.759 – – – – – – – – 37.310 3.000.948 – – 5.904 Tawakal Garment Limited 150.346 19.406.155 5.672 3.475.000 100 Cost of investment 2009 2008 (Rupees '000') – – – – – – 5.415.293 61.833 5.545 *1.740 112.130 12.Notes to the Consolidated Financial Statements For the year ended December 31.774 841.838 74.453 1.749 44.656 Kohinoor Energy Limited – Millat Tractors Limited 450.000 5 1.755 119.598 5.904 150.570 2 2.600 Pakistan Petroleum Limited – Pakistan Refinery Limited – Pakistan Tobacco Company Limited – Premier Insurance Limited – Prosperity Weaving Mills Limited – Rupali Polyester Limited – Saudi Pak Leasing Company Limited – Security Investment Bank Limited 10 Shakargani Mills Limited – Sitara Chemical Industries Limited 112.342.020 16.120 Standard Chartered Leasing Limited – Standard Chartered Modaraba – Suraj Cotton Mills Limited – Tariq Glass Industries Limited 2.088 127.100 92.000 2.473 KSB Pumps Company Limited 124.564 37.384.021.477 Ibrahim Fibres Limited 300 ICI Pakistan Limited – IGI Investment Bank Limited – LTV Capital Modaraba **171.465 2. 2009 Number of Shares / Certificates held 2009 Fauji Cement Company Limited – Fauji Fertilizer Company Limited – Fauji Fertilizer Bin Qasim Limited – First Equity Modaraba – First Fidelity Lease Modaraba 1 First Habib Bank Modaraba – First National Bank Modaraba 699.179 Habib Sugar Mills Limited – Hira Textile Mills Limited – The Hub Power Company Limited 6.549 8.473 136.164 89.146.526.082.835 10 546.289 20.423 1.000 Tri-Pack Films Limited – Trust Modaraba 100 Trust Securities & Brokerage Limited – United Bank Limited – Yousuf Weaving Mills Limited 100 Total Listed Shares / Certificates 2008 788.500 1.000 666.759 1.500 372.156 100.224 – 24.538 – 46.551.507 1.447 1.000 446.332 127.751 First Tawakal Modaraba 446.774 The General Tyre and Rubber Company of Pakistan Limited – Glamour Textile Mills Limited 200.120 333.000 210.604 *515.684 **171.216 5 150.000 1 60.964 547.000 4.016 128.442 – – – – – – – 75.000 300 766.000 699.000 237.000 GlaxoSmithKline Pakistan Limited 655.000 125.163 8.140 – – 204.900 18.672 – – – 61.669 1.243 89.300 – 142.000 100 120.820 134.182 124 NIB BANK LIMITED ANNUAL REPORT 2009 .713 13.735 Habib Insurance Company Limited *1.140 22.855 Mohib Textile Mills Limited 5 mybank Limited – Nagina Cotton Mills Limited – National Bank of Pakistan – New Jubilee Life Insurance Company Limited – Nimir Industries Chemicals Limited – Oil & Gas Development Company Limited – Pakistan Oilfields Limited 227.180 151.100 175.500 130.356.403 5.466 – – 1 – – 2 1.391 11.183 389.021.938.600 550.000 3 159.

8 Value of investment.7. 2008 amounts to Rs.928 66.544 million.27% 4. 2008 amounts to Rs.6 11.8 5.000 100 1.7.3 11.000 **52.7. 11. based on the net assets stated in the audited financial statements of investee company as at June 30. 51.000 **79.044 2. based on the net assets stated in the audited financial statements of investee company as at June 30. Tariq Iqbal Khan SunBiz (Private) Limited Chief Executive: Mr.000 1.5 Value of investment. 11. Lazaro Campos 11.000 5.570 million.7. ANNUAL REPORT 2009 NIB BANK LIMITED 125 .000.280 11.7.7 11.6 Value of investment. based on the net assets stated in the audited financial statements of investee company as at June 30.01% 568. Shabahat Hussain Pakistan Textile City (Private) Limited Chief Executive: Mr.680 5.500 50.217 5. based on the net assets stated in the audited financial statements of investee company as at June 30.65% 0.7.000 1.000 **15. 11. 2.3 This investment is fully provided in these consolidated financial statements.000 100.000 2.000 509 50. 11.7.000 – 64. Hussain National Investment Trust Limited Chief Executive: Mr.88% 0.680 5. based on the net assets stated in the audited financial statements of investee company as at December 31.7 This investment is fully provided in these consolidated financial statements. 11.4 Value of investment.7 Particulars of Unlisted Shares Pakistan Export Finance Guarantee Agency Limited Chief Executive: Syed Mohammad Zaeem Central Depository Company of Pakistan Limited Chief Executive: Mr. 538. 11.7.55% 8.5 11.7. 11.500.171 million. 1.7. 11. 2008 amounts to Rs. 2009 amounts to Rs.26% 8.044 2.200 10.7.2 Value of investment.000 **5. Mahmood Ahmed Equity Participation Fund Limited Chief Executive: Mr.000.7.7. 2009 amounts to Rs.Notes to the Consolidated Financial Statements For the year ended December 31.7. 78.7.000 ***9 568.1 11. 2009 amounts to Rs.800 10. Nisar Ahmed SWIFT Chief Executive: Mr.320 million.33% 4.97% 4.1 Value of investment.000 1.2 11.4 11. based on the net assets stated in the audited financial statements of investee company as at December 31. S.477 million.210 million.000 100 1.087 5.000 100.500.000 – 5.7. Zaheer A. 2009 Number of Shares held Note Percentage of holding 2009 2008 Cost of Investment 2009 2008 (Rupees '000') 11. Muhammad Hanif Jakhura Crescent Capital Management (Private) Limited Chief Executive: Mr.

016 33.994 299.697 Number of Units / Certificates held 2009 11.305 2008 Amortized cost 2009 2008 (Rupees '000') 11.050 42.994.406 24.219 310.184 10.000 – 152.000 – – – 200.000 60.400 20.000 54.746 9.370.153 10.640 21.000 92.000 3.900 6.074 – 29.000 60.410 970.400 20.000 101.500 10.000 6.000 576.553.997 784.385.120 8.721 – 8.125 4.000 76.000 2.559 152.370.385.100 203.184 15.277 20.393 133.119 29.733 2008 Cost of investment 2009 2008 (Rupees '000') – – – 32.428 466.982 299.219 430.649 82.911 100.975 – – – 20.000 2.525 15.000 2.000 53.559 2.911 – 92.789.700 29.000 17.167 2.000 28.946 164.432 50.888 10.958 206.10 Particulars of Mutual Funds Held-for-trading Meezan Balanced Fund NAMCO Balanced Fund Available-for-sale AKD Opportunity Fund Askari Sovereign Cash Fund First Dawood Mutual Fund First Habib Income Fund HBL Income Fund HBL Multi Asset Fund Lakson Money Market Fund Pakistan Strategic Allocation Fund JS Growth Fund (formerly UTP Growth Fund) JS Income Fund JS Large Capital Fund (formerly UTP Large Capital Fund) 587.000 227.800 30.895 37.016 – 6.000 – 76.067 126 NIB BANK LIMITED ANNUAL REPORT 2009 .493 – 11.000 74.455.697 – 206.000 6.580 29.765 5.679 971.000 74.000 25.191 – 15.9 Particulars of investment in Unlisted Term Finance Certificates Avari Hotels Limited New Khan Transport Company (Private) Limited Power Holdings (Private) Limied 30.092 587.679 – 1.410 – 11.901 53.247 50.402 11.8 Particulars of investment in Listed Term Finance Certificates Investee Allied Bank Limited Askari Commercial Bank Limited Azgard Nine Limited Bank AL Habib Limited Engro Corporation (formerly Engro Chemical Pakistan Limited) Escorts Investment Bank Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Soneri Bank Limited Telecard Limited Trust Leasing & Investment Bank Limited United Bank Limited 6.574 1.888 10.000 8.000 557.167 2.439 246.443 – 3.Notes to the Consolidated Financial Statements For the year ended December 31.000 486.000 50.055 8.871 32.000 227.493 100.092 – – 500. 2009 Number of Certificates held 2009 11.209 260.000 5.000 6.606 10.110 900.

050 3.503) 550.301 11.240 1.558 233.578 1.300 893.149 20.172.089 285.172.000 – 3.919.313 (7.499.319 818 232.299 587.368 1.603 221.1 191.000 7.32% 4.317 232.2 Total assets Total liabilities Net assets Total Revenue Profit / (loss) for the year Share of profit / (loss) for the year NAFA Cash Fund NAFA Government Securities Liquid Fund NAFA Islamic Multi Asset Fund NAFA Islamic Income Fund NAFA Multi Asset Fund NAFA Savings Plus Fund NAFA Stock Fund National Fullerton Asset Management Limited (held for sale) PICIC Energy Fund PICIC Growth Fund PICIC Insurance Limited PICIC Investment Fund – 3.700 ANNUAL REPORT 2009 NIB BANK LIMITED 127 .645 186.294) 17.228 53.013 3.582 784.622 – 484.867 122.704.482.439 2.858 10.804 – – 4.500.000 6.72% – 6.442 307.34% 30.00% 34.327.160 43.164.482.465 745.45% 13.749. under the NBFC Regulations.472 3.335.500.993 96.945 980.052.749.000 7.398 1.993 96.789 – 46.571 – – 17.329 479.000 – 7.1 Holding – 0.149 Subsequent to the year end.11.314 236.791 (74. 2010 subject to certain regulatory approvals.892 – 30.11 Particulars of investment in associates NAFA Cash Fund NAFA Government Securities Liquid Fund NAFA Islamic Multi Asset Fund NAFA Islamic Income Fund NAFA Multi Asset Fund NAFA Savings Plus Fund NAFA Stock Fund National Fullerton Asset Management Limited (held for sale) PICIC Energy Fund PICIC Growth Fund PICIC Insurance Limited PICIC Investment Fund 11.11.691 452.000 7.935 505.429.747 102.92% 22.500.966) 149.978 66.396 1.420 Note 11.412.242.000.176 9.284 – 38.858 10.500.375 (29.801 23.500.075 – 156. a purchase agreement has been signed between the Bank and the National Bank of Pakistan (NBP).041 48.160 43.979 510.237.500.595.155 1.855 130.489 267.771 7.399 69.778 65.060 94.377 1.342 – 181. 2009 Number of Shares / Units / Certificates held 2009 2008 Total carrying value 2009 2008 (Rupees '000') – 15.499.438 1.Notes to the Consolidated Financial Statements For the year ended December 31.000 7.634.244 7.000 – 7.253 83.859 3. by which the Bank is in the process of disinvesting it's twenty seven percent holding in NAFA to NBP as.115) – 5.950.954 351.209 726.00% 27.937.031.000.256 237.07% 27.000 6.500.000 7.04% – 1.911 8.746.897 3.740 474.283 354.558 987.198 (12.611 551 15.17% 15.889 266.957 – 6.690 303.500.998 27.640 12.704.11.354 54. The transaction is expected to be completed by March 31.999 772.934 52. an entity cannot have an interest in two asset management companies.507 8.468 50. Summarized financial information in respect of associates is set out below: 2009 (Rupees '000') 11.239 502.998 27.

733 123.697 – 329.Unlisted Term Finance Certificates Subsidiary 11. 5. 2009 Number of Shares / Certificates held 2009 11.924) (2.510 53. 5 each ** Shares / Modaraba Certificates of Face Value of Rs. * Shares / Modaraba Certificates of Face Value of Rs.697 (30.Listed shares / Certificates / Units .140) (146) (27.Term Finance Certificates Reversal due to sale Closing balance 11.000 each 11.733 361.680 each All Term Finance Certificates are of Original Face Value of Rs. 10 each.603) (20.13 Particulars of provision for diminution in value of investments 2009 2008 (Rupees '000') Opening balance Charge for the year Reversal for the year .held-for-trading Adamjee Insurance Company Limited Allied Bank Limited BankIslami Pakistan Limited Fauji Fertilizer Bin Qasim Limited Indus Motors Company Limited Meezan Balanced Fund NAMCO Balanced Fund Oil and Gas Development Company Limited Pakistan Telecommunication Company Limited Soneri Bank Limited Standard Chartered Bank (Pakistan) Limited The Bank of Punjab – – – – – – – – – – – – – (5.Unlisted shares .645) (24.101 128 NIB BANK LIMITED ANNUAL REPORT 2009 .005) (6.379 5.487) (6.973) 497.15 Particulars of deficit on revaluation of securities .101 576.348) (11.843 (1.940 6.12 Particulars of investment in subsidiary Financial and Management Services (Private) Limited **88.745) (36.073) 558.697 421.587) (150.850 2008 Total carrying value 2009 2008 (Rupees '000') 724 724 724 724 Unless otherwise stated.009 724 558.101 422.275) (6.138) 575. 100 each *** Shares of Face Value of Euro 2.068) (3.Notes to the Consolidated Financial Statements For the year ended December 31.559 558.705 (439.14 Particulars of provision in respect of type and segment Available-for-sale securities .006 329. holdings in modaraba certificates and ordinary shares are of Rs.602) 422.301 54.850 **88.377 724 422.

Notes to the Consolidated Financial Statements For the year ended December 31.825 5.245 – 3.689 500.590 3.706 7.000 A/A1 * A+/A-1 * AA/A1+ * – AA/A1+ A-/A2 * * A/A-1 A+/A-1 * AA/A1+ * * * * AA-/A-1+ A/A1 A+/A-1 * * A+ * * ANNUAL REPORT 2009 NIB BANK LIMITED 129 .000 25.736 2.000 8.179 2008 Rating (Rupees '000') Rating 42.428 – 71.546 3.407 – – – – – – – 2.000 25.at Market Value Federal Government Securities Market Treasury Bills Pakistan Investment Bonds GoP Ijara Sukuk Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference Shares Pak Electron Limited Fazal Cloth Mills Limited Jamshoro Joint Venture Company Limited Ordinary shares of listed companies Abbott Laboratories (Pakistan) Limited Allied Bank Limited Attock Cement Limited Askari Bank Limited Bank AL Habib Limited BankIslami Pakistan Limited Berger Paints (Pakistan) Limited Clariant Pakistan Limited Samba Bank Limited.373.873 – 13.368 – – 6.501 205.961 50.400 2.497 643 15.950 – – – 1.779.617 37.124 5.390 3.118 2.628 183 2.338 46.16 Quality of Available-for-Sale Securities .904 1.862 4.425 13.200 16.840 – 8.594.419 – – * – – AA/A1+ AA+/A1+ – * – – – * – – – – – – – A+/A-1 – * A+ – – 81.304 Unrated Unrated – Unrated Unrated 18.421 – Unrated Unrated Unrated Unrated – 25.652 24. (formerly Crescent Commercial Bank Limited) Crescent Steel & Allied Products Limited Dewan Farooq Motors Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Fauji Cement Company Limited Fauji Fertilizer Bin Qasim Limited Fauji Fertilizer Company Limited First Equity Modaraba First Habib Bank Modaraba IGI Investment Bank Limited First National Bank Modaraba The General Tyres and Rubber Company of Pakistan Limited GlaxoSmithKline Pakistan Limited Habib Insurance Company Limited Habib Sugar Mills Limited Hira Textile Mills Limited 105.047 5.847 7.063 21.551 15. 2009 2009 (Rupees '000') 11.632.000 – A/A1 * – 25.000 50.

898 7.393 – 9.697 54.174 1.302 2.900 4.928 * * * AM2 * * * * 5.013 1.341 16.260 49.401 52.603 13.614 Rating * * * * * * A/A1 * AAA/A-1+ * * AAA/A-1+ * * * A * * BBB+/A-3 BBB+/A2 AA-/A-1 A+/A1 AA+/A1+ * * A+/A1 * AA+/A-1+ – * – – – – – – * – – – – – – – AA-/A-1 – – – * – – – 5.235 – – – – – – 52.000 1.000 50.370 3.Notes to the Consolidated Financial Statements For the year ended December 31.831 – 171.925 93.500 100 5.569 1.000 1.815 * – FR 4-STAR * * 130 NIB BANK LIMITED ANNUAL REPORT 2009 . 2009 2009 (Rupees '000') The Hub Power Company Limited ICI Pakistan Limited KSB Pumps Company Limited Karam Ceramics Limited Kohinoor Energy Limited Millat Tractors Limited mybank Limited Nagina Cotton Mills Limited National Bank of Pakistan New Jubilee Life Insurance Company Limited Nimir Industries Chemical Limited Oil and Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan Tobacco Company Limited Premier Insurance Limited Prosperity Weaving Mills Limited Rupali Polyester Limited Saudi Pak Leasing Company Limited Shakarganj Mills Limited Sitara Chemicals Industries Limited Standard Chartered Leasing Limited Standard Chartered Modaraba Suraj Cotton Mills Limited Tariq Glass Industries Limited Tri-Pack Films Limited Trust Securities & Brokerage Limited United Bank Limited Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited Crescent Capital Management (Private) Limited Equity Participation Fund Limited National Investment Trust Limited Pakistan Export Finance Guarantee Agency Limited SunBiz (Private) Limited Pakistan Textile City (Private) Limited SWIFT 199.749 26.476 100.979 13.659 31.000 1.702 584 997 63.521 – – * * FR 4-STAR – – 17.990 24.023 5.513 – 3.195 – – – 2008 Rating * – * (Rupees '000') 160.352 55.523 – – – – – – – 17.246 379 3.964 23.016 4.000 509 100 5.143 19.680 1.000 – * * * AM-DS * * * – Units / Certificates of Mutual Funds AKD Opportunity Fund Askari Sovereign Cash Fund First Dawood Mutual Fund First Habib Income Fund HBL Income Fund 25.592 11.680 1.941 – – – 16.817 1.634 7.000 2.976 2.000 50.

123 100.963 51.419 2.Notes to the Consolidated Financial Statements For the year ended December 31.314 8.100 300.121 10.626 9.000 18.371 FR 4-STAR 29.585 – 48.029 15.730 29.163 1.559 – 166.000 23.277 152.321 53.557 – AAAAA– AA A+ – – AAAA– BBB A – * Rating Not Available ANNUAL REPORT 2009 NIB BANK LIMITED 131 .171 19. 2009 2009 (Rupees '000') HBL Multi Asset Fund Pakistan Strategic Allocation Fund JS Growth Fund (formerly UTP Growth Fund) JS Income Fund Lakson Money Market Fund JS Large Capital Fund (formerly UTP Large Capital Fund) Term Finance Certificates Allied Bank Limited Askari Commercial Bank Limited Avari Hotels Limited Azgard Nine Limited Bank AL Habib Limited Engro Corporation Limited (formerly Engro Chemical Pakistan Limited) Escorts Investment Bank Limited New Khan Transport Company (Private) Limited Orix Leasing Pakistan Limited PACE Pakistan Limited Pakistan Mobile Communications Limited Power Holdings (Private) Limited Telecard Limited Trust Investment Bank Limited United Bank Limited 2008 Rating (Rupees '000') 17.278 – FR 4-STAR FR 3-STAR FR 5-STAR * 52.559 141.186 Rating * FR 4-STAR * – – – FR 4-STAR – 37.729.963 20.028 152.117.083 678 – – – 26.348 320.000 146.070 232.665 40.390 AAAAAAAAA AA A+ * AA+ A+ AA* BBB A AA – 16.584 424.384 54.140 – 24.697 – 30.789.126 20.

457) (232.481 12.195 (31.17.3 Net Investment in Finance Lease 2009 Not later Later than than one one and less year than five years Over five years Total (Rupees '000') Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 2.863) 2.559.710 350.026 3.226 860.322 Minimum Lease payments receivable includes a sum of Nil (2008: Rs.206) 4.in Pakistan Net investment in finance lease .847.374.288) 80.715.000.2 Short term (for upto one year) Long term (for over one year) 12.116.766.849 527.000.849 – – – – – 2.351) 84. 132 NIB BANK LIMITED ANNUAL REPORT 2009 .066. 79.978.193 12.405 4.2.1 In local currency In foreign currencies 12.215.996 564.625. Particulars of advances 97.542 (267.279 100. which has not been recognised as income and deferred in these consolidated financial statements.841.697 2.in Pakistan Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan Advances .General Advances .679.887 (367. running finance.548) 3.818 34.742.Net of provisions 12.3 2009 2008 (Rupees '000') 93.256. 2009 Note 12.423 100.952.877.643 2008 Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 2. 5.150.1 12.322..Notes to the Consolidated Financial Statements For the year ended December 31.1 This includes a sum of Rs.360.663 97.423.658) 1.889 2.773) (16.762.010.650 1.000.679 218.374.746.322.555.027 4.2.339 650.618 1.894) (15.542.074 million) representing unrealized exchange gain.757 (15.987 97.368.445.415) 3.316 3.248 million) due from an associated undertaking.123 3. etc. as stated in note 6.055 (466.172 1.485 131.481 62.552) 318.737 (299.427 97.048. cash credits.481 (16.757 95.054 2.322.258.074 million (2008 : Rs.757 61.233 3.515) (262. ADVANCES Loans.2 12.5 12.061.510 – – – – – 3.168 (98.060 100.4 12.322 412. in accordance with the policy of the Group.417.021.654 859. 79.406 90.344.Gross Provision against non-performing advances .979.711 992.061.478 38.Specific .

374.457 855. 7 billion and management is confident that the actual realization will substantially exceed the FSV benefit availed.879) – – – 232.6 12.746.094. 232.978. 22.457 232.429.910 1. The total value of the collateral on the basis of which the FSV benefit has been availed is over Rs.429.222) – 16.715. Had the benefit of the said new circulars not been availed by the Bank in the current year.428.457 – – – – 855.040. 1.754.681 (89.515 – – – – 1.197.304.221 million.808 14.038.773 Total 10.757 14. 2009 had allowed banks to avail the benefit of 30% of Forced Sale Value (FSV) of pledged stocks and mortgaged commercial and residential properties held as collateral against all non-performing loans for 3 years from the date of classification for calculating provisioning requirements with effect from December 31.978.256) 524. 2008.700) – 15.197.269 million.088) (2. commercial properties and benefit of 40% on industrial properties (land and buildings only) held as collateral against all non-performing loans for 3 years from the date of classification for calculating provisioning requirements with effect from September 30.038.812 million). 2009 12.715.457.1 Particulars of provision against non-performing advances .516.515 1.298 23.837.948 22.979.490 million and profit after tax would have been lower by Rs.515 3.515 The State Bank of Pakistan (SBP) vide its BSD Circular No.222) 347.757 14.526 million (2008: Rs.Notes to the Consolidated Financial Statements For the year ended December 31.832.288 (Rupees '000') 12.761 (3.746.457. 2.945.038.5.457 2009 General 262. In addition to above mentioned FSV benefit.751.249 13.773 16.288 ANNUAL REPORT 2009 NIB BANK LIMITED 133 . If the additional benefit had not been taken.052 1.052 1.560) (29. 1.140 (261.374.151.123. 23.248. Subsequently the SBP.428.742) (1.248. The increase in profit as a result of taking this benefit is not available for the distribution of cash and stock dividends to shareholders. 12. Against the FSV benefit of Rs.248.715.249 15.526 – – – – 4.428. 1.923 1.374.056 2.515 262.249 13.5 Particulars of provision against non-performing advances Note Opening balance Charge for the year Reversals Amounts written off from the opening balance Amounts charged and written off during the year Transfer to / (from) Closing balance Specific 16.248.910 4.706 16.898.700) – 15.429.751. vide its BSD Circular No.107.696) 554.457 – – – – 855.249 13.957 10.574 (1.275 million.351 – 15. which have been placed under nonperforming status as detailed below: 2009 Note Classified Advances Domestic Category of Classification Provision Required Total Domestic Overseas Total (Rupees '000') Provision Held Domestic Overseas Total Overseas Substandard Doubtful Loss 12.056 2.457 12.715.351 16.554.683.979.746.526 15.697 million.757 14.641 (261.199. the provision against non performing loans and advances would have been higher by Rs.757 14.123.833.639) 262. 2 dated January 27.088) (2.746.812 – – – – 5.746. the Bank has also availed FSV benefit of Rs.911 115.979.565.1 4.298 15.351 Specific 10.298 15.4.088) (3.715.304.746.894 – 232.773 59.457 – 15.706 16.515 2008 General 613.289. 151. the Bank has provided an amount of Rs.715.038.064.731 million and profit after tax would have been lower by Rs.731 million in accordance with relaxation granted by the SBP to the Bank.505 (218.894 Total 16.978.813.6 (218.715.248.428.910 1.910 1.735 23.948 22.4 Advances include Rs.457.515 – – – – 1.499) – – (347.653.374.516.522) 8.248.151. 10 of 2009 dated October 20.298 15.742) (1.589 (119. 232.978. 2009.384 12.746.434) 8.812 1.288 3.515 – 16.107.4. 2009 has made further amendments in the Prudential Regulations and allowed banks to avail the benefit of 40% of FSV of pledged stocks and mortgaged residential.639 16.923 15.894 15.868 855.288 – 16. the net charge for provisions would have been higher by an amount of Rs.773 – 262.868 4.735 13.080 (3.916.782.052 1.052 1.706 16.554. 2008 Classified Advances Domestic Category of Classification Provision Required Total Domestic Overseas Total (Rupees '000') Provision Held Domestic Overseas Total Overseas Substandard Doubtful Loss 5.516.496 million which represents provision in excess of the requirements of the State Bank of Pakistan.046 10.1 Included in the Provision Required is an amount of Rs.706 16.163 (2.808 14. 1.516.currency wise In local currency In foreign currencies 15.715.

000 and above Write offs of below Rs. 500.850 760.248 13.033 2.1 During the year.380 55.983) 305.248 300.707.7 12.470 3.077 2. 500. controlled firms.27.135.523 2.840 2.1 Particulars of write offs: Against provisions Directly charged to profit and loss account 1.590. associated companies etc.6.398 1. 500.511. 1962.926 764 164.854 607.000 (605.248) – 7.380 2. However.347.882 2.382.416 760.882 13.236 16. 12.2 Write offs of Rs.6 12.1 Capital work in progress Civil works Equipment and electrical work Advances to suppliers and contractors Advance for computer software Others 62. 1.471 586.590.030 million (2008: Rs.595 63.6.543) 1. 134 NIB BANK LIMITED ANNUAL REPORT 2009 . this write off does not affect the Bank's right to recover the debts from any customers.010. executives or officers of the Bank or any of them either severally or jointly with any other persons Balance at the beginning of the year Additions during the year Loans granted during the year Repayments during the year Balance at the end of the year 1.205 595. 2009 is given in Annexure 1.738 3.7 208.321 88.946.755 97.442 67.010.1.620 305.255 (281. 2009 Note 12.1 13.285 million) was written off as this represented long outstanding and unidentifiable items.422 565.576 1.301. managed modarabas and other related parties Balance at the beginning of the year Loans granted during the year Repayments during the year Balance at the end of the year 13.110 210.800 2. the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31.8 Particulars of loans and advances to directors.000 Details of loan write offs of Rs. an amount of Rs.971.000 and above 12.Notes to the Consolidated Financial Statements For the year ended December 31.143 44.545 807. Debts due by directors.313 1. OPERATING FIXED ASSETS Capital work in progress Property and equipment 13.909 (317.264 1.181) 1.523.310 1.686 (509.7 In terms of sub-section (3) of section 33A of the Banking Companies Ordinance.509.511.840 12.141 83.321 Debts due by subsidiary companies.2 164.110 2009 2008 (Rupees '000') 12.

648 – 933 – 584.798.064.611) – 497.980 28. 605.792 25. The Bank filed a Civil Suit against CDGK before the High Court of Sindh in respect of the said unilateral cancellation of the allotment.249 1. NIB BANK LIMITED 135 . KDA Scheme-5.248) 842.3 This includes a plot of land costing Rs.offs) 31. 9. also in 2000. 2009 (on deletions) (write-offs) 31.936 523. a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the land had been reverted to KPT.769) – (2. Karachi (the “Plot”).295 – (679) (6. both the suits were decided in favor of the Bank. 2009 31.666 (44.330 132. 2009 01.373. possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by City District Government Karachi (“CDGK”) (formerly Karachi Development Authority).811 (8.080. 2009 (Rupees '000') (deletions) (write .639 – 957.551 98. office and computer equipment Vehicles Leasehold Improvements 13. 296. KPT had no standing to claim that the land had been reverted back to KPT.617 1. Furthermore. 13.042 659.654) (523) 849. 2009 January Additions / Adjustment / December as at January year / Adjustment / as at December December % per annum As at Accumulated For the Net Book Rate of Accumulated value as at Depreciation DEPRECIATION Property and Equipment Notes to the Consolidated Financial Statements For the year ended December 31.923) (3. whereas.397 158.770.937) – (1.457 – 54.541 (10) 468. In the suit filed against CDGK.590 – – – 158. in the suit against KPT. Meanwhile. 13.634 336. the High Court of Sindh held that since allotment in favor of the Bank was valid therefore. At present.822 422.2 2009 C O S T As at Note 01.617 – – 336.456 15. in November 2008.779 – 19.745 (45.509 million (2008: Rs.2 Carrying amount of temporarily idle property is Rs. the High Court of Sindh held that the action of cancellation of the allotment by CDGK was improper and void. the Bank is actively defending the case.903 7. 526.785 19.971.499 (5.563 25.859 1.456 – – 1.812 (1.2. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh.522 142.151 458.641) – 624.446 22.168) 165. Clifton.2.184 million (2008: Rs.240 million in Block-6.057) 42.13. In 2000.180 8.470 – 5% 5% 10% 20% & 33% 20% 20% Leasehold land Buildings on freehold land Buildings on leasehold land Furniture and fixtures Electrical. Both the decisions of the High Court of Sindh are currently being challenged in two separate High Court Appeals by CDGK and KPT and the same are still pending.323 (54.073 225.583 – 161.073 17.303 million).164) 1.634 – – 15.723) (2.1 Included in cost of property and equipment are fully depreciated items still in use having cost of Rs.456 – 4.2. Subsequently.387.767 132.354 – 1.842 million).3 583.401) 1.434 235.389 – 114.037 337.064.073 (9) 241.808 2.250 31.334. The High Court of Sindh initially issued restraining orders against CDGK and KPT in the respective suits in respect of cancellation of the allotment of the Plot.048.529 (17) 4. 526. KPT filed a Civil Suit seeking a declaration from the High Court of Sindh to the effect that the Plot had been validly reverted to KPT. 2009 ANNUAL REPORT 2009 Particulars Freehold land 13. CDGK cancelled the allotment unilaterally based on certain building and construction restrictions.748 332. All the legal dues in respect of the Plot including Non-utilization Fees have been paid.617 – – – – 336.343 23.2.127 (58.795 83.

677 8. 2008 (Rupees '000') (deletions) / (write-offs) 31.364) 38.694 (614) 4.907 – (8.954) (505.738 Vehicles ANNUAL REPORT 2009 .980 17.208 (355) (211.548) 315.499 130.048.064.806 (6.862) 164.949) 225.064.529 490.389 336.073 10.946.365 421. 2009 136 2008 C O S T Net Book Accumulated Adjustments / as at December December (write-offs) 31.276 – 4.892 (517) 1.446 659.745 598.335 28.609) – (496. 2008 (on deletions) Additions / Adjustment / December as at January year / As at Accumulated For the DEPRECIATION Rate of depreciation % per annum NIB BANK LIMITED Particulars Freehold land 1.456 583.634 132.197) 4.434 19.717 2.903 83.939) 9.443) 983.387.080.397 104.180 458. 2008 01.127 1.757) 14.311 23.617 1.547 (274.266 315.276 – 4.790 (96) 6.043 (111.980 (273. office and computer equipment Vehicles Leasehold Improvements Assets held under finance lease: – 1.681) – (4.783) – (451.416 (32.959) 42.334.127 1.868) – – 158.805.617 – – – – 15.695) 842.387.170 142.101. 2008 Value as at As at January 01.822 450.300 (106.385 (45.946.826 (220.144 (208.617 – – 336.397 158.686 272.790.645 – – – 1.336) 1.454.319 383.812 1.266 7.641 68.921 (21.417 140.438 (183) 328.334) (11.353 (280.634 – – 336.445.097) 501.043 (107. 2008 31.811 95.456 15.837 (368) 501.778) – (456.Notes to the Consolidated Financial Statements For the year ended December 31.253 21.048) 199.614) (5.073 233.169) – (196.334.738 5% 5% 10% 20% & 33% 20% 20% Leasehold land Buildings on freehold land Buildings on leasehold land Furniture and fixtures Electrical.637 – – – 583.389 2.

462 16. Block 8.108 9.778 ANNUAL REPORT 2009 NIB BANK LIMITED 137 .373 501 4 176 2. House # 8/184 Liaquatabad.043 54. Near Pankha Hotel Kabari Bazar Shershah. 2009 13.615 58. Huzaifa Arif.723 18.769 112 698 1.4 Detail of disposal of property and equipment during the year Description Cost Accumulated depreciation Book value Sale proceeds Mode of disposal Particulars of buyer (Rupees '000') Computer Equipment Computer Equipment Vehicles Vehicles Vehicles Sub Total 9. Karachi M/s Iqbal and Brothers.1 million or net book value not exceeding Rs.657 729 615 263 27.657 1.726 – – 749 264 369 1. Karachi Mr.572 3. Karachi Employee Mr.259 8. Mohammad Safdar Qureshi service rules Ex Employee Employee Ms.165 1.462 16.914 5.746 8 8 2.954 169.176 860 1. House # E-11.2.277 2.478 879 632 29.561 6.507 204. Gulshan-e-Iqbal.593 Bid Bid Bid Mr.654 10 653 27.Ex Employee service rules Items individually having cost less than Rs.954 111. Muhammad Rafiq.25 million Computer Equipment Vehicles Furniture and fixtures Leasehold improvements Office equipment Sub Total 2009 2008 18.286 280.Notes to the Consolidated Financial Statements For the year ended December 31.400 18 661 29.382 489 117 885 542 560 2. 0. Sonia Shehryar .

489.726 28.659 586.472 2.149 204.889 102.453 – 56. 2008 AMORTIZATION / IMPAIRMENT Accumulated Amortization Impairment Accumulated as at January for the for the as at December 01.221.489.453 1.471 – 226.412 74.157 5. 2008 Net Book Value as at December 31.472 – – 25.824 34.040.726.000 339.09% 20% 10% to 50% Note 6. 2009 year year (Write offs) 31. 2009 AMORTIZATION / IMPAIRMENT Net Book As at Accumulated Amortization Impairment Accumulated Value as at Additions December as at January for the for the as at December December (deletions) (Write offs) 31.471 60.000 565.116 – 180.726 60.1 Included in cost of computer software are fully amortized items still in use having cost of Rs.260 102.997 25.557 – – – – 124.149.261.062 – – 1. 2008 (Rupees '000') As at Additions December (deletions) (Write offs) 31.09% 9.495 308. 2008 year year (Write offs) 31.895 – 30.986.453 – – – – 25.784 24.060 128.573.056 639.489. 2009 138 As at January 01.982 63.391. 55.743 586.000 – 43.040.726. 2009 31.073 – 7. 2009 Rate of amortization % per annum (Rupees '000') NIB BANK LIMITED Particulars Goodwill Core Deposit Relationships Core Overdraft / Working Capital Loan Relationships Brand Computer Software Management Rights 124.149 204. 2009 C O S T INTANGIBLE ASSETS Notes to the Consolidated Financial Statements For the year ended December 31.455 1.986.521 10% to 50% 1.331 million). 2008 C O S T Particulars As at January 01.221.083 – 226.000 339.895 1.236 94.040.09% 20% 86.903.14.726.726. 2009 01.231 – – – – – – – – – 67.185 1.222 – 1.371 7. 2008 Rate of amortization % per annum Goodwill 2.980.871 – 214.116 180.073 (785) – (785) – – – – 124.222 – 6.923.314 11.726 29.726.595. 57.637 – – – 1.637 – – – – (300) – (300) 1.083.726 – 29.453 25.643 20.669 9.149 – 204.824 19.595.726 29.726.9 14.651 – 298.261.472 2.583 142.116 767.566 61.075 1.472 – 113.554 1.040.726 28.09% 9.694 40.638 1.669.164 Note 6.472 2.252 million (2008: Rs.313 – – – – 1.472 1.261.236 94.116 174.149 204.495 24.286 40.880 9.9 Core Deposit Relationships Core Overdraft / Working Capital Loan Relationships Brand Computer Software ANNUAL REPORT 2009 Management Rights .453 124.566 61.659 – – 2.743 1.489.261.

Weighted average yield / cost of funds These are based on the actual yield/cost of funds of the recent past.50% 19.261. using cash flow projections based on financial budgets by the management and covering a ten year period as management believes it will require a period of ten years to capture the niche market. 2009 14.472 14. ANNUAL REPORT 2009 NIB BANK LIMITED 139 .Notes to the Consolidated Financial Statements For the year ended December 31. for impairment testing as follows: (Rupees ‘000’) Consumer and Small Enterprises Group (CSEG) Small & Medium Enterprises and Commercial (SMEC) 15. which are also reportable segments.13% 17.359 25. The cost of equity is calculated using the Capital Asset Pricing Model (CAPM).1 Key assumptions used in value in use calculations: The recoverable amounts of the CGUs have been determined based on value in use calculations.113 9. Terminal growth rate used to extrapolate the cash flows beyond the budgeted period Assumptions are based on published industry research. Non-interest income Non-interest income is projected in line with management’s estimate of growth in advances and deposits.52% 10. Cash flows beyond that ten year period have been extrapolated using declining growth rates.35% 2008 Terminal growth rate The calculation of value in use for both CGUs is most sensitive to the following assumptions: Discount rate Terminal growth rate used to extrapolate the cash flows beyond the budgeted period Weighted average yield / cost of funds Loan loss rates Local inflation rates Non-interest income Market share Discount rate The discount rate reflects the management’s estimate of cost of equity applicable to the CGUs. The following post-tax rates are used by the Bank: 2009 Discount rates Projections Terminal value 18. Market Share Management assesses that the relative positions of each of the two CGUs to niche (untapped) market will grow over the budgeted period.2.2 Allocation of goodwill to CGUs: Goodwill acquired through acquisition with indefinite life has been allocated to two CGUs.599. Loan loss rates These rates are based on the historical loss rate trend of the Bank in the respective units before merger and the results of the performance of the two CGUs since the launch of these businesses post merger.20% 10.52% 17.662.

298 (218.1 15.411.344.533. 2009 14.954 288. 1989 respectively and.e. the Bank also assessed the recoverable amount of core overdraft / working capital loan relationships.583) – (571.838.314 1.087 15. Intangibles In the current year.604) (2. in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers. 15. CSEG and SMEC. Ministry of Finance and Economic Affairs (Economic Affairs Division).007) (33.185 15.195) (1.2 Annual test for impairment Goodwill During the year. core deposit relationships and brand and determined that no impairment loss exists.539) (6.228 2009 2008 (Rupees '000') 15.135. 1987. through Office Memo 1(16)/50/DM/86 dated July 8.338 1. the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.482 472. by determining the value in use over a ten year period as these businesses are long term by nature.544) (6.604) (1. the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan.007) (33.123.Notes to the Consolidated Financial Statements For the year ended December 31.939 461.387 71. DEFERRED TAX ASSETS Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Deficit on revaluation of securities Gratuity Unused tax losses Excess of tax base of government securities / investments over accounting base Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Intangibles including goodwill Fair valuation of subsidiaries and associates Unrealised exchange gains Unrealised exchange losses 6. The unrealised exchange losses of the Bank (formerly PICIC) as on April 21.387 277.933 281. The management believes that any reasonable possible changes to the key assumptions on which the calculation of recoverable amount is based would not cause the carrying amount to exceed the recoverable amount.113) 6.2 140 NIB BANK LIMITED ANNUAL REPORT 2009 .393.590.762 2.606.495 14.1 6.511) (714. 1987 and 1(12)/50/DM/89 dated June 1.530 350.877 9.257) (521. Note 15. the Bank assessed the recoverable amount of the goodwill associated with both CGUs i.198) 6.249.2 In 1987 and 1989.2.426 (328.460) (650.239 8. The recoverable values of both CGUs exceed their carrying values and hence no impairment is deemed to exist.

387 71.351 – 276.358) (33.495 14.021) (7.954 288.214 – – – – 275.136 – (26.816.604) 6.939 Excess of tax base of government securities / investments over accounting base 461.228 (Rupees '000') 2.544) (6.305 – – – 2.877 (328.228 109.332.539) (6.257) (521.592) 2008 (218.087 Gratuity 15.583) (571.043 Gratuity 15.460) (650.389) 6.949 (63.411. 2009 Deferred debits arising due to: Provision against loans and advances 6.533.662.087 15.545 Excess of tax base of government securities / investments over accounting base 385.974 Provision against other receivables 7.592) – – – 6. 2008 Deferred debits arising due to: Provision against loans and advances 3.314 1.179 (11.924.006 (328.482 Unused tax losses 472.549 – – – – – – (205.427) (8.606.917 224. 2009 account in equity 31.606.530 350.344.482 472.604) – (95) 99.801) (1.007) (33.394 77.591 (110.612) (1.239 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Intangibles including goodwill Fair valuation of subsidiaries and associates Unrealised exchange gains Unrealised exchange losses (Rupees '000') (213.393.544) (6.338 Provision against balances with other banks 1.604) 6.239 ANNUAL REPORT 2009 NIB BANK LIMITED 141 .533.007) (33.035.Notes to the Consolidated Financial Statements For the year ended December 31.007) (33.387 – 277.257) 50.604 Deficit on revaluation of securities 2.387 Provision for leave encashment 26.577 Unused tax losses 373.639) (638.933 281.583) – (571.460) (650.414 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated accounting depreciation on owned assets Fair valuation of subsidiaries and associates Unrealised exchange gains Unrealised exchange losses (552.939 461.3 Movement in temporary differences during the year: 2009 Balance as at Recognised in Balance as at January profit and loss Recognised December 01.604) 2.883 – – 3.980 281.044 – – (1.782) 463.604) 6.362) – – – (205.185 Balance as at Recognised in Balance as at January profit and loss Recognised December 01.789.954 Provision against other receivables 288.135.338 1.024) – – (720) 1.202 Provision against balances with other banks 1.762 2.511) (714.387 Deficit on revaluation of securities 277. 2008 account in equity 31. 2009 15.344.195) (1.005 – – 83.

During the year. 2009 and the FBR circular in this respect is not part of the Seventh Schedule. Accordingly. 4(1)ITP/2008-49 dated December 23. 2009 has informed ICAP that it has decided to insert a new Rule 8(a) in the Seventh Schedule to allow for amounts provided for in tax year 2008 and prior to the said tax year for doubtful debts which were neither claimed nor allowed as tax deductible in any year shall be allowed as a deduction in the tax year in which such doubtful debts are written off. The deduction for provisions for doubtful and loss categories of advances and off balance sheet items is allowed upto a maximum of 1% of total advances. the Federal Board of Revenue (FBR) through Circular No. 792 million on such provisions. Provisioning in excess of 1% of total advances would be allowed to be carried over to succeeding years. 2009 has made significant amendments in the Seventh Schedule to the Income Tax Ordinance. the deferred tax asset relating to provision for advances and off balance sheet items. The management. Further. FBR vide its letter reference F. how and when the provision for bad debts disallowed upto December 31. Management has carried out an exercise at year end and concluded that they would be able to get deduction of provisions for the year ended December 31. recognized through the financial year ended December 31. is applicable from the financial year ended December 31.406 million has been carried forward. to date no SRO has been issued to incorporate the agreed amendments to the Seventh Schedule. However. 142 NIB BANK LIMITED ANNUAL REPORT 2009 . 2009 has made the above change effective for financial year ended on December 31. based on its tax consultants' opinion is of the view that the change to the Seventh Schedule. The Bank based on the advice of its tax consultants has treated the FBR commitment as effective.Notes to the Consolidated Financial Statements For the year ended December 31. relating to the 1% capping as described above. The amount of bad debts classified as Substandard under the Prudential Regulations issued by the State Bank of Pakistan would not be allowed as an expense. No. 2009 15. 2001. 2007 would be allowed as a deduction. 8 of 2009 dated September 25. 5. The matter was taken up by the Pakistan Banks Association (PBA) and the Institute of Chartered Accountants of Pakistan (ICAP) with the Federal Board of Revenue (FBR). the above amendments do not provide for any transitional mechanism i.e. 2009 that are in excess of 1% of total advances and has recognized a deferred tax asset of Rs.4 Deferred tax asset The Finance Act. 2008. 2008 amounting to Rs.

ANNUAL REPORT 2009 NIB BANK LIMITED 143 .242 21. deposits.1 & 16.732 549.Notes to the Consolidated Financial Statements For the year ended December 31.413 (342.832 425. 1974.3 Unrealized gain on forward exchange contracts . including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh.4 All the assets and liabilities as of November 30.net of provisions 16. Nil (2008: Rs.899.2 Advance taxation .198.729 16.608 40.net Non .439 120. Furthermore.414 195.210 – 1. the parity rates ruling prior to August 15.140 43.000 425.667 706.416) (82.539 (342.233 43. and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated.729 242. Subsequently.167 100.663 36.3 Represents cost of land.507 340.4 Insurance claim Management fee receivable Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets .598) 6.826) 3. advance rent and other prepayments Advances Deposits Advance rent Prepayments 45.2 Advances.414 964.355 million (2008: Rs.5 16. OTHER ASSETS Income / mark-up accrued Local currency 16.009 396.045 611.101 million).409 122.228 – 13. for purposes of conversion of foreign currency amounts.445 74. 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation. 41. advance rent and other prepayments 16.980 8.295. The market value of the subject assets as of December 31.148.235 549.6 Foreign currencies Advances.626 755.net Dividend receivable Receivable against sale of investments Receivable from Financial and Management Services (Private) Limited Stationery and stamps on hand Advance for purchase of term finance certificates Assets in respect of Bangladesh 16.4 2009 2008 (Rupees '000') 4.406 3. 16.756 13. deposits. 16.949.546 – 14. consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1.713 31. 2009 was Rs.416) (82.225 6. Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities. there have been certain modifications to the foreign currency advances relating to Bangladesh. the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area.712 5.1 This includes Rs.025 million) in respect of associated undertakings.472 24. 0.137 706. plant and machinery acquired by the Bank against advances and held for resale.924 23. generally speaking. 2009 Note 16.409 105.049.993) (823.993) (823.304 16.261 463. such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area. 1971 were used. 667.380 – 299.banking assets acquired in satisfaction of claims 16.

989 1.Notes to the Consolidated Financial Statements For the year ended December 31.665 23.520 322. the Government has agreed that it would continue to provide the funds for servicing PICIC’s foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICIC’s own funds not exceeding Rs. 82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery.332 62.841 – (20. in accordance with the policy of the Group. 2009 16.642) (99.701 241. together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability. BORROWINGS In Pakistan Outside Pakistan 62. 17.574.826 19. as stated in note 6.069) 823.6 This includes a sum of Rs.5 Particulars of provisions held against other assets Opening balance Charge for the year Reversals Write offs Closing balance 2008 (Rupees '000') 823.651. BILLS PAYABLE In Pakistan Outside Pakistan 1.432. which has not been recognised as income and deferred in the financial statements.598 718. 34.409. following an agreement reached between PICIC and the Government of Pakistan during 1976.481.365 23.523. However.365 18.033 42.701 241.099 million) representing unrealised exchange gain.084 144 NIB BANK LIMITED ANNUAL REPORT 2009 .099 million (2008: Rs.095 48.665 23. Further.332 62.499.366 23.033 42. did not accept any responsibility for PICIC’s assets in that area.314 74. in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICIC’s assets in Bangladesh nor is it considered necessary to provide for any loss that may arise in respect of PICIC’s assets in Bangladesh.826 16. 2009 The Government of Pakistan.17.409.207 18.366 1.481. 34. while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh.263) 823.523. such allocated amounts.383. Accordingly.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 62.211 (117.651.893 1. commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh.

235 27.912.522 19.598. who have availed the related German credit.6 18. However. 2009.216.Notes to the Consolidated Financial Statements For the year ended December 31.032.000 241.60% to 12.156 993.651.011 million (2008: Rs. 96.250 103.286 23. 2009 2008 19.4 18.700. 18.523. This also includes unrealized exchange loss of Rs.00% to 5.323.000 42.00 % (2008: 6.011 million) which has been netted off against unrealized exchange gain (note 21) as it is payable when recovered from sub-borrowers.444 million as interest thereon till June 30.3 18. 162.454.Non remunerative Margin accounts Financial institutions Remunerative deposits Non-remunerative deposits (Rupees '000') 35.199 221.50% ) per annum maturing within four months.365 200.665 162.4 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark-up ranging from 4.933.044 23.814 92.439 22.00% to 14.5 & 18.366 18.351 2.067.2 Details of borrowings .5.940 4.secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long term finance for export oriented projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency 2009 2008 (Rupees '000') 18.5. 45.40% to 12.718.1 11.614 55. 100 million outstanding as at December 31.50% ) per annum maturing within six months.941 41.6 These borrowings are subject to mark-up at rates ranging from 11. 2006.154. 18. this amount is appearing as a pending transaction with a corresponding amount appearing as investment in PIBs.233 11. Government securities have been given as collateral against these borrowings. 96.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up ranging from 6.1 This includes Rs. As the lender had failed to return the pledged PIB upon the maturity of the contract period.430 4.90%) per annum maturing within two months.90% to 6. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 21). who have availed the German credit. 2009 Note 18.286 62.535.50% (2008: 4.578.831 18.798.100 2. 18.332 162.838.327 1. 18.5 These borrowings are subject to mark-up at rates ranging from 11.361.00%) per annum maturing within seven years.7 6.706 9.286 million in respect of liabilities against German credit representing principal amount of loan and Rs.376. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts . 18. which was borrowed from a Company in 2004 against pledge of a PIB. No interest is accrued either as expense on this borrowing or as income from the PIB since the filing of the dispute between the Bank and the Company. the Bank is contending that any amount of principal and interest is payable to the GoP only when recovered from the related Sub-borrowers.878 56.7 The Government of Pakistan (GoP) has claimed an amount of Rs.90% (2008: 13.50% to 7.41% (2008: 10.092 ANNUAL REPORT 2009 NIB BANK LIMITED 145 .769.

Unsecured Mark-up Subordination Issue Date Issue Amount Rating Tenor Redemption 3.026 5.081 4.600 3.543.000 million A+ (A plus) 8 years from the Issue Date Ten equal semi-annual installments of 0.294 13.155 154.604.461 65.000 191. 2008 Rs.896 92. SUB-ORDINATED LOANS Term Finance Certificates .798.940.555 9.1 Particulars of deposits In local currency In foreign currencies 84.Quoted.999.214 73. 2016 The Bank can also exercise a Call Option or a Partial Call Option after obtaining written approval from the State Bank of Pakistan at any time after a period of sixty months from the Issue Date Note 2009 2008 (Rupees '000') Maturity Call Option 21.264 2.541 21.890.220 7.220 – – 57.092 2008 (Rupees '000') Floating (no floor.net Security and other deposits Payable to IBRD .266 4.142 11.886 437.009 34.125 68.329 45.982 7.461 103.058.473 38.883. 4.189 2.026 – 490.838.02% of the Issue Amount for the first sixty months followed by six equal semi-annual installments of 16.15% (The Base Rate is defined as the average “Ask Side” rate of the six month Karachi Interbank Offered Rate (“KIBOR”) The TFCs are subordinated to all other indebtedness of the Bank including deposits March 5.064.63% of the Issue Amount from the sixtysixth month onwards March 5.057 1.122 1.317 474.200 94.036 – 31.752 45.9 1.095 72.415. OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned Income on inland bills Accrued expenses Insurance premium payable Advance from lessees Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized exchange loss .897.162 1.699 68.997.733.5 & 35.537 103.368 146 NIB BANK LIMITED ANNUAL REPORT 2009 .Notes to the Consolidated Financial Statements For the year ended December 31. no cap) rate of return at Base Rate +1. 2009 2009 19.441 68.878 20.095 310.960 992.574 17.Managed Fund Payable against purchase of investments Payable to workers welfare fund Payable to defined benefit plan Security deposits against lease Locker claims payable Others 35.

930.043.727.911.770) ordinary shares.992) (464.027 20.000.4 Reconciliation of number of ordinary shares of Rs.727.087 (2. 2009 22.271 7.824.000.782) (949.648.474) 71. 10/.each 50.043.000 Ordinary shares of Rs.952) (544.759 641.076 764. 22.902.076 2.727.200.271 22.843.000.659 2.000 4.109. SHARE CAPITAL 22.437.843.386.796.471) (33.000.522) (357.000 5.795.710) (2.648.078.NET Deficit on revaluation of available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Mutual Funds Investment in Shares of Listed Companies Share of deficit on revaluation of securities of associates Related deferred tax asset (20.979) (16.770) 417 24.317 2.076 1.824.000 50.244 40.244 28.592.045) ANNUAL REPORT 2009 NIB BANK LIMITED 147 . DEFICIT ON REVALUATION OF ASSETS .each 3.425 (2008: 1.843.000.995.000.902.076 23. subscribed and paid up Fully paid up ordinary shares of Rs.000 22.076 7.417 4.495 (472.201.659 Fully paid in cash Issued for consideration other than cash (under schemes of amalgamation) 32.278.000. 10 each At the beginning of the year Issued during the year for cash At the end of the year 2.789.437.1 Authorized (Number of shares) 5.2 Issued.027 764.727.789.417 2.849 (186.3 The holding company Bugis Investments (Mauritius) Pte.547) (157.Notes to the Consolidated Financial Statements For the year ended December 31.427) (10.146) (1.744.727.075) (151. 10/.422) (793. Limited holds 2.132) 277.

098 929. 148 NIB BANK LIMITED ANNUAL REPORT 2009 .475 3.998 108.275 6.4 Other contingencies Claims against the Bank not acknowledged as debts 24.175 4.708.666 5.8 The returns of income of NIB Bank Limited and other merged entities have been filed up to the tax year 2008 relevant to the financial year ended December 31.434 24.353.604 35.643.233.176 11.310 7. 1.3 Trade-related contingent liabilities Letters of credit Acceptances 24.869.104 million respectively.098.1 Direct credit substitutes Contingent liability in respect of guarantees given favoring: Government Others 24. 24.891 75.000 297.5 Commitments in respect of forward lending Commitments to extend credit 294.Notes to the Consolidated Financial Statements For the year ended December 31.495 304. disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC) and from tax years 2004 through 2007 for Ex-PICIC Commercial Bank Limited (Ex-PCBL).864 7.211 The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above.831 24.2 Transaction-related contingent liabilities / commitments Guarantees given in favor of: Government Others 4.156 382. These disallowances may result in additional tax aggregating to Rs.813.742 24. CONTINGENCIES AND COMMITMENTS 2008 (Rupees '000') 24.035 4.876.016. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains.464 140.273 222.446 1.275 40.459. 2007.609.436 54.367 88.809 873.7 Commitments for the acquisition of operating fixed assets 205.841 75.841 52. 2009 2009 24.798.696 – 469.6 Commitments in respect of forward exchange contracts Purchase Sale 54.716.642.625.842. which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law.

022 652. MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings Others 8.181 433 – 194.527 432. 2009 2008 (Rupees '000') 25.792 991. 61.906) 46.110 28.914 284.640 11.051.025.560 2.801 8.066.051 48. Appeal against the assessment is pending and the management is confident that the eventual outcome of the appeal will be in favor of the company. OTHER INCOME Gain on disposal of property and equipment Service charges Rent income 1. Management is confident that the eventual outcome of the cases will be in favor of the Bank.358 10. GAIN ON SALE OF SECURITIES Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Ordinary shares of Listed Companies Units / Certificates of Mutual Funds Others 158.514 27.424 465.403.003.584 26.553 15.400 2. 2009 The management of the Bank intends to file an appeal against the Income Tax Appellate Tribunal Order in respect of Ex-PCBL for tax years 2004 through 2007.632 26.554 1.148 ANNUAL REPORT 2009 NIB BANK LIMITED 149 .094 – 172.588 18.679.521 60.760. The tax authorities have made certain disallowances for the tax year 2006.484 1.778 75.775.321 3.176 609. 2009.282.868.278.324 15.262 20.687 28.600 573.792 12. The appeals filed in respect of Ex-PICIC are pending before the Commissioner Income Tax (Appeals). The said disallowances may result in additional tax aggregating to Rs.244 295.648.310 28.602 3.916 462.553 (1.246. The returns of income of PICIC AMC have been filed up to the tax year 2009 relevant to the financial year ended June 30.976 million.723 65. MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers On investments in: Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money Lending 12.739 35.740 1.126 18.924 3.754.315 1.Notes to the Consolidated Financial Statements For the year ended December 31.747 173.066 27.

420 103.Notes to the Consolidated Financial Statements For the year ended December 31.323 308. OTHER CHARGES Penalties imposed by the State Bank of Pakistan Others 1. ADMINISTRATIVE EXPENSES Salaries.9 29.777 857.038 22.030 8. electricity.676 3.012 190.809 30.673 265.106 115.992 284.2 14 29.707 122.1 13.524 117.455.895 – 77. etc.969 712 650 3.211 501.2 This was paid to The Citizens Foundation in which none of the Directors or their spouses have any interest.425 673 8.822 104.411.050 220.035 11.097) 59.521 12.677 86.310 1. conveyance and vehicle running Security services Fixed assets written off Impairment of investment in associates Intangibles written off Others 2.432) (122.271 150 NIB BANK LIMITED ANNUAL REPORT 2009 .043 298.005 485 87.851 7.064 229. Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors' fees.1 Auditors' remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses 4. 30. Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscription Auditors' remuneration Depreciation Amortization Donations Traveling.646 18.966 6. insurance.402 73.600 750 1.598 325.381 142.845 1.627 926.886 2.716 68.758 4. etc.312 20.2 29.417.387 155.841 1.758 468. allowances and other expenses Brokerage and commission Rent.824 2009 2008 (Rupees '000') 35.335 (123.347 5. taxes.739 278.758 130.720.075 – 56. 2009 Note 29.062 54 45.324 76.494 11.363 83.4 & 35.211 29. allowances.

886) (4.518.23) 33.851) 683.427 5. TAXATION 2008 (Rupees '000') For the year Current Prior years Deferred 126.305) (3.843.174 98.393) 4.040 – (32.430 6.008.167) (114.997 1.273 1.727 0.179.925 72 4.829.131 142 5.493) 32. in '000') Weighted average number of ordinary shares outstanding during the year (in '000') Earnings / (loss) per share .924.275 3.896 543.553.684.684 12.722 (9.37 2.110) 73.469 34.Notes to the Consolidated Financial Statements For the year ended December 31.549) 59.169) (3.225.829.493) 31.357.204) 99.1 Relationship between tax expense and accounting profit Accounting profit / (loss) for the year Tax on income @ 35% Effect of permanent differences Effect of exempt income Adjustment in respect of tax at reduced rates Others Minimum tax Tax charge for the year 1.187) (3. BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Profit / (loss) after taxation (Rs. STAFF STRENGTH (Numbers) Permanent Temporary / on contractual basis Group's own staff strength at the end of the year Outsourced Total staff strength 4.514 (8.771 59.552.019 10.834.043.656 6.174 (13.basic / diluted (Rupees) 1.727 (3.493.765 15.929 ANNUAL REPORT 2009 NIB BANK LIMITED 151 . 2009 2009 31.428 – (3.981 (4.450 868. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks (net of provision) 8.553) (458.958 (83.959 9.

634 57. 2009 35.453 (785) 2008 12% 15% 11% 14% Based on LIC 1975-79 Ultimate Mortality table Heavy Age .057 33.109 4.056) 73.109 – 22.859 11.789 12.057 10.751 (281) (1.749) 22.858 32.859 – 32.731 – 73. The benefit is equal to one month's last drawn basic salary of each year of confirmed service.634) (32.502 – 81.919 (1.482 152 NIB BANK LIMITED ANNUAL REPORT 2009 .128) 22.559 33.453 – 29 23.693 – – 23.647 32.261 7.326 44.963 1.634) (32.376 – – 12.128) 12.482 – 23.962 (829) 6. 2009 using the "Projected Unit Credit Method".631) 9.963 – 58.808 – 2.398 – (1.482 11.Mortality rate .651 – (1.Salary increase rate .919 3.6 Summary of valuation results for the current and previous periods Present value of defined benefit obligations Fair value of plan assets Deficit Experience (gain) / loss on obligation 81. The main assumptions used for actuarial valuation are as follows:Gratuity 2009 .901 57.630) 17. The actuarial valuation was carried out for the year ended December 31.577) 76.109 (823) 23.2 Principal actuarial assumptions The actuarial valuation is carried out periodically.631) 11.963 10. DEFINED BENEFIT PLAN 35.317 – 1.Withdrawal rate Note 35.822 – (271) (19.1 The benefits under the gratuity scheme are payable in lump sum on retirement at the age of 60 years or earlier cessation of services.834 (303) (1.502 4.3 Reconciliation of (receivable from) / payable to defined benefit plan Present value of defined benefit obligations Unrecognized prior service cost Net actuarial gains not recognized Assumed on amalgamation Net liability / (receivable) 35.901 829 (2.771) 73.4 (Income) / charge for defined benefit plan Current service cost Software project expense capitalized Interest cost Actuarial (gain) recognized Amortisation of prior service cost 35.859 23.731 58.453 – 23. subject to a minimum of five years of service.6 81.731 13.922 – 3. 35.057 – 57.630 (3.647 – – 44.506 (76.919 – 33.357 – 1.892 5.235 58.822 (32.Wise withdrawal rates 2009 2008 2007 2006 2005 (Rupees '000') 35.859 9.5 Movement in balance (receivable) / payable Opening balance Expense recognized Software project expense capitalized Benefits paid to outgoing members Assumed on amalgamation Closing balance 35.482 – 23.482 9.377 23.731 – 73.Notes to the Consolidated Financial Statements For the year ended December 31.693 10.631) 12.502 – (7.536) 57.506 (76.859 – 32.Valuation discount rate .128) 10.377 – – 32.057 17.

922 3. travel and medical insurance.340 171. 2010 would be Rs.229 million as at December 31.962 6.029 – 39.714 8 – 657.742 1. The charge to the Fund for the current year amounts to Rs.559 58. Based on actuarial advice.834 (271) 10.730 511 – 717.679 13.188 40.235 81.792 45.7 Reconciliation of present value of defined benefit obligations Opening balance Current service cost Interest cost Benefits paid Actuarial loss on obligations Closing balance (Rupees '000') 58.500 8.714 – – – – – – 1.097 1. 2009 2009 2008 35.344 5 1.205 7. security arrangements and reimbursement of household utilities.742 39. Directors fees are paid to non executive directors only.727 million. 24.8 Expected contribution for the next one year The Bank provides for gratuity as per the actuary's expected charge for the next one year.238 45.036 53.143 6.398 (2.963 35.018.324 858 2. management estimates that the charge in respect of the defined benefit plan for the year ending December 31. 36.036 2.9 PICIC AMC operates an approved funded gratuity scheme for all is permanent employees who have completed the minimum qualifying period of service as defined under the scheme. ANNUAL REPORT 2009 NIB BANK LIMITED 153 . 0.127 2.502 33.Notes to the Consolidated Financial Statements For the year ended December 31.586 2 2.792 1. 2009. Equal monthly contributions are made to the fund by both the Bank and the employees @ 10% of basic salary. The Chief Executive and certain Executives of PICIC AMC are provided with free use of Group maintained cars.919 10.344 – – – – – – 2. Last actuarial valuation was carried out as at June 30.433 2. 2009.623 million and the balance payable to the Fund is Rs.995 985.483 48.872 2. 37.784 160. 35. DEFINED CONTRIBUTION PLAN The Group has established a provident fund scheme administered by the Board of Trustees for all permanent employees. COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Executive 2009 2008 Directors 2009 2008 Executives 2009 2008 (Rupees '000') Fees Managerial remuneration Charge for defined benefit plan Contribution to defined Contribution plan Rent and house maintenance Utilities Others – 24.995 48.272 45.328 452 Number of persons 2 The President / Chief Executive of the Bank is also provided with free use of a Bank maintained car.963 13. as per the terms of his employment. 0.056) 4.

769.365 23.183.376. FAIR VALUE OF FINANCIAL INSTRUMENTS 38.998 54. The fair values of unquoted subsidiaries.523.021. 2009 38.838.651.366 23.079 165.838.887 12.470 Fair value is the amount for which an asset could be exchanged.207 1.009 3. Except for investment in unquoted subsidiaries. fixed term advances of over one year.207 1.193 80.357.357.872.275 3.684. staff loans and fixed term deposits of over one year cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.376 31.436 53.609.677.019 9.684 5.628 29.496.459.151 40.019 2008 Book value Fair value (Rupees '000') 5. sub-ordinated loans and investment in quoted associates have been stated at market values.000 5.302.281 167.292 35.281 2.999.476 137.016.185 84.047.200 5.951.651.059 164.834.878 103.878 92.684.366 92.084 1.313.523.754.193 5. between knowledgeable willing parties in an arm’s length transaction.997.432.449.574.376.092 103.600 3.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange 54.192 135.761 3.848 5.749 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 1.228.344.303 38.761 164.574.098.681.450 868.302.721. the fair values of other on balance sheet financial assets and liabilities are not significantly different from their book values as these assets and liabilities are either short term in nature or are frequently repriced.406 80.835. or a liability settled.365 62.116.688.835.135.450 868.084 62.162 54.320.604 39.459.1 On-balance sheet financial instruments 2009 Book value Fair value Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets 8.625.096.792 3.848 2.009 3.092 3.798.275 3.834.292.798.406 84.681.951.432. Fair values of held-to-maturity securities.621 12. staff loans and fixed term deposits of over one year.979 57.021. Fair values of unquoted equity securities have been stated at the lower of cost and Net Assets Value.887 8.027.503 137.621 59.344.Notes to the Consolidated Financial Statements For the year ended December 31. 154 NIB BANK LIMITED ANNUAL REPORT 2009 . fixed term advances of over one year.684 9.251 138.891 35.

481) (30.145 47.483 179.24% (558.614.976 1. 2008 Net Interest Income Non Funded Income Net Interest and non markup Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%) 430.487 92.726.215.098.43% 1.190.239 329.820 4. The segment analysis with respect to business activity is as follows: For the Year ended December 31.507.704.291) (10.364.1.915 71.050.357 6.22% 2. 2009 Corporate and Investment Banking Small & Medium Enterprises and Commercial Consumer and Small Treasury Enterprises (Rupees '000') Head Office / Other *Adjustments Net Interest Income Non Funded Income Net Interest and non markup Income Total expenses including provisions (excluding Impairment) Impairment against Investment Total expenses including provisions Segment Net income / (loss) before tax Segment Return on net assets (ROA) (%) Segment Cost of funds (%) 169.095 (2. 2009 Segment Assets (Gross) Segment Non Performing Loans Segment Provision (including general provisions) Segment Assets (Net) Segment Liabilities 60.248) (47.110.34%) 7.052 4.113.054 81.499 75.150 1.865.824 2.021.674.648 (5.572 626.036 30.481) * The respective segment assets and liabilities incorporate intersegment lending and borrowing.Notes to the Consolidated Financial Statements For the year ended December 31.903.142 1.103.333 787.785.226.660 1.892.573 50.476.869.744 80.284 15.662 (1.58% (412.869 (1.818.903.986 – 4.967.60% 10.731.507.418.956 94.577 92.510 48.986 (447.095 293.098.832.005.918.431.300.875.489.180) (0.413 (249.530 2.764.864.480.090 1.105 (4.050.837.574 2.999 460.21. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Group's President / Chief Executive. 2008 Segment Assets (Gross) Segment Non Performing Loans Segment Provision (including general provisions) Segment Assets (Net) Segment Liabilities 48.355.93%) 6. Transactions between reportable segments are carried out on an arms length basis.43%) 7.016.248) As at December 31.484 0.465 315.889.619 4.323.437) (0.033 79. with appropriate transfer pricing. ANNUAL REPORT 2009 NIB BANK LIMITED 155 .113.127) – – – – – – – – – N/A N/A As at December 31.697 540.822 (30.812 382.745) (1.599 98.705 754.599 61.85% 428.439.957 39.489.991.095 – 466. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Group is organised into reportable segments as disclosed in note 6.88%) 10.622 36.124 2.984.565 14.105 – 7.875 324.212) – (1.503 406.16% 11.810 73.520 17.936 685.032) 466.644.584.35% 1.727.837.444 308.795 34.632 3.484 34.002 268.249 1.881 1.795 – – 36.341 4.413 – 1.720 3.618 1.915 – – 75.869 – 2.628. 2009 39.383) (3.632.830 63.114.805 1.487 4.145) (1.648 – 6.113.03% 4. Segment performance is reviewed on the basis of various factors including profit before taxation.627.217. The adjustments column eliminates intersegment lending and borrowing.850 212.155 – – – – – – – – – N/A N/A For the Year ended December 31.688 12.33%) 8.832.785 195.507.204 1.439.949.384.444 – 98.791 815.655 82.596 211.495.874 2.453.865.29% 9.013.294 575.037.942 (47.904 2.360.806 4.873 51.481 4.481) – – (30.104.212) 1.653.904) 965.889.050.248) – – (47.756 44.300.725 32.72% 410.629.722 7.887) (1.774 44.006.

032) (274) (174) (31.275 146.384 4.563 – – – – – – – – 946 – – – – – – – 133 – – – – – – – – – 724 724 – – – – – – – – – 60.211 – 498 161 – – 49.199 – 112.012.248 172.344 5.950.686 (509.899.848 (24.135.983) 92.298 (86.598.140 101.097.828 – 7.425 34.167 84. NIB BANK LIMITED The detail of transactions with related parties is given below: (Rupees '000') 40.783) (225.702 43.718 – – – – – – – – – – – – 264.691 – – 724 724 2.275 – – – – – – 300.765 – – – – 22.096 – At the beginning of the year Deposits during the year Exchange difference Withdrawal during the year (39.40.862 – 34.033.248 7.272 5.000 – (2.11).970 – 136 5.427) 510.880) 66.257 175. employee benefit plans (refer note 35).798.199 191.968 – – – 191.953.000 (605. 2009 156 Holding company Unconsolidated subsidiary 2009 2008 2009 2008 2009 2008 2009 2008 Associates Key management personnel Other related parties 2009 2008 The Group has related party transactions with its holding company (refer note 1). Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties.078 40.809 – 1. RELATED PARTY TRANSACTIONS Notes to the Consolidated Financial Statements For the year ended December 31.301 24.656) – – – 305.968 – (7.968 2.12).083 – – – 4. and its key management personnel.121) (4.822) – 184. associated undertakings (refer note 11.156) 264.773.545 104.781 – – – – – – – – – – – – 9.633 – – – – – – – – Advances At the beginning of the year Addition during the year Repaid during the year At the end of the year Deposits 66.054 45.146 2.376 (1.242.682 – – 84. unconsolidated subsidiaries.217) 44.052.000 (283.462 191.420 66.718 198.242.248) 807.420 18.751) 1.083 – (150.824.809 – 268 1.765) At the end of the year Investment in shares / mutual funds At the beginning of the year Investments made during the year Investments sold during the year Equity accounting method adjustments At the end of the year Receivables At the end of the year Insurance claim receivable At the end of the year Payables At the end of the year Brokerage payable At the end of the year Payable to Directors At the end of the year Insurance premium payable ANNUAL REPORT 2009 At the end of the year Sub-ordinated loans At the end of the year .344 322.1 Balances outstanding as at the year end – – – – – – – – 305.632 3.224. (refer note 11.305 – – – – – 133 – 2.401) (5.634) 2.089 268 84 510.906 104.995 (4.207 – – – 296 – 4.987 6 358 32.

348 2.049 5.757 – – – 323.531 1. 2009 ANNUAL REPORT 2009 Holding company Unconsolidated subsidiary 2009 (Rupees '000') 2008 2009 2008 2009 2008 2009 Associates Key management personnel 2009 2008 Other related parties 2008 40.924 – – – – – – 198.098 241.973 – – – – 39.2 Income / expense for the year – – – – – 4.714 – – – 91.344 – – – 119.501 243 – – – – – 212.297 1.694 – – – – – – – – – – – – – – – – – – – – 223.350 98.217 10.016 – – – – – 160.969 4.581 – – – – – – – – 154.963 8.Notes to the Consolidated Financial Statements For the year ended December 31.840 5.122 – – Mark–up / return / interest earned on advances Mark–up / return / interest expensed on deposits Dividend income from shares / mutual funds Brokerage expense Directors remuneration Directors traveling expense Insurance premium expense Remuneration to key management personnel Contribution to Provident Fund Mark-up expense on sub–ordinated loans Management fee earned NIB BANK LIMITED 157 .249 7.095 – – – – – – – – – 67.163 – – 6.874 2.562 480 – – – 8.937 1.509 – – – 6.

793) 40. 158 NIB BANK LIMITED ANNUAL REPORT 2009 . 3.437.993 2.398. subscribed and paid-up capital of the Bank was Rs. 3.307.276 (7.132 288.442) 3.1 24. 77.2.437.909 16.829.531 – 17.600 232. 07 dated April 15. The above exemptions have been granted upto December 31.1 (400.997.600 million represents unsecured TFCs of the Bank.043.2.436 41.585 – 19. Details of the Group's regulatory capital are as under: Note Tier I Capital Fully paid-up capital Share premium Share deposit money Statutory and general reserves Accumulated loss Less: Goodwill and intangibles Deficit on account of revaluation of investments held as available-for-sale Other deductions (represents 50% of significant associates) Total Tier I Capital Tier II Capital Subordinated Debt (upto 50% of total Tier I Capital) General Provision for loan losses (subject to 1. 2009.439 million) and Rs.595 3. 705.200 262.372.909) 3.066 (8. 40.381.000.081.25% of Total Risk Weighted Assets) Less: Other deductions (represents 50% of significant associates) Total Tier II Capital Eligible Tier III Capital Total Regulatory Capital Base (a) 2009 2008 (Rupees '000') 40.442 13. 8 dated June 27.860.1 Scope of Application Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines given by the SBP through BSD Circular No.727 million shares of Rs.618 12.1 The SBP has granted the Group exemption from deduction of the following from Tier I and Tier II capital. and ii) PICIC AMC's investment in PICIC Investment Fund (PIF) and PICIC Energy Fund (PEF) amounting to Rs. The current requirement for CAR is 10% as per BSD Circular No.Notes to the Consolidated Financial Statements For the year ended December 31. reserves and accumulated losses / unappropriated profit (b) Tier II capital which consists of sub-ordinated loans (subject to 50% of eligible Tier 1 capital). CAPITAL-ASSESSMENT AND ADEQUACY BASEL II SPECIFIC 41. The amount raised through the issue contributed towards the Bank’s Tier II capital for Capital Adequacy Ratio as per the guidelines of the SBP.981 (288. 2009. 447.820. revaluation reserves (subject to 45% of balance in revaluation reserve) and general provision for loan losses (subject to 1.382.657 544.246.729) 41.1 41.474 400.437.171 million) arising from the acquisition of PICIC and PCBL.162 24. 157.2.773 41.259 million (2008: Rs. 10 each.997.246.606 million (2008: Rs.271 million as at December 31.000 80.386. The sub-ordinated loans amounting to Rs. 2006. comprising of 4. 2009 41.973.2 Capital Structure The Group’s regulatory capital base comprises of: (a) Tier I capital which includes share capital. 41.396 28. 4.271 8. The Bank has adopted the Standardized Approach for Credit and Market Risk and the Basic Indicator Approach for Operational Risk.083.271 8.25% of Risk Weighted Assets) The issued.340 million (2008: Rs.894 3. i) Intangible assets (excluding Goodwill and Computer software) amounting to Rs. 2009.843.618 – 218.809.999.024 million) respectively.2.126 41.014.

555.437. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions.843.338.135.009.258.595.993.283 374.675 3.850 6.959. The Group ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis.399 7.253 1.269.476 8.957.313 7.080 3.644 4.513 427. Collateral.989 302.549 1.115. Banking operations are categorised as either Trading book or Banking book.501 Capital Adequacy Ratio Total eligible regulatory capital held Total Risk Weighted Assets Capital Adequacy Ratio 2009 2008 (Rupees '000') (a) / (b) 19.027 – 66.501 19.531 162.526.038 61. is used as an outflow adjustment.650 434.981 678.686 417. lien on deposits).957.3 Capital Adequacy The purpose of capital management at the Group is to ensure efficient utilization of capital in relation to business requirements. The Group has complied with all regulatory capital requirements during the year. Cash and near Cash collateral includes Government of Pakistan securities. Risk weights notified are applied to Net Adjusted Exposure.853 80.135 45.46% 17. cash and cash equivalents (deposits / margins.143.128 4.860 3.230 2.985 10.149.523 18.268 398.002. shares listed on the stock exchanges.228 37. risk appetite.314 35.126 93.379 93.633.204 25.46% compared to the minimum regulatory requirement of 10%.981 101.163 10.374 75.751 3.Notes to the Consolidated Financial Statements For the year ended December 31.068 14.707.240 799.585 629.201 5.923 200.440 54.346 10.988.342.743 750. 2009 was 19.692. regulatory requirements and the risk profile of its activities.637 333.086.715 34. if any. The Group's capital adequacy ratio as at December 31. and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to the Group's On and Off-balance sheet exposures.760 86.086 313.372.65% ANNUAL REPORT 2009 NIB BANK LIMITED 159 .277 381.087.917 101. plant and equipment and all other fixed assets Other assets Off Balance Sheet Market Related Exposures Market Risk Interest Rate Risk Equity Position Risk Foreign Exchange Risk Operational Risk TOTAL (b) (Rupees '000') 3.847 33.641. the Bank may issue capital / Tier II securities.520 2.218 607.143.708 53.382.924 895.648 3.499 4. In order to maintain or adjust the capital structure.526 11. 2009 41.195.620 4. The capital requirement for the Group as per the major risk categories is indicated below: Capital Requirements 2009 2008 Risk Weighted Assets 2009 2008 Credit Risk Corporate Sovereign Retail Banks Equity Investments Public sector Entities Past Due Loans Claims against Residential Mortgage Investments in premises.523 8.269 97.899 30.340.565 962.603 – 6.611.790 – 29.401 – 2. growth. shareholders' returns and expectations.292.798 277.276.861 918 480.914 4.499.252 81.

3 4.158 268.951 648.505 – – 9.835.5 Unrated 1.4 5.053.548 29.012 36.567 – 310.181 3.952 2.Notes to the Consolidated Financial Statements For the year ended December 31.446.155 51.Maturity Upto and under 3 Months in PKR Public Sector Entities Sovereigns Others Total 1 2.3 4.692.Maturity Upto and under 3 Months in FCY .821 146.988 Deduction CRM – 334.Maturity Upto and under 3 Months in FCY .012 34.071.535 – – 616.867 33.628.Over 3 Months .Maturity Upto and under 3 Months in FCY .315.776 1.185.542.951 338.217.711 52.353 6.535 – – 616.Over 3 Months .864. The Bank has obtained ratings from websites of External Credit Assessment Institutions (ECAIs) and followed the SBP rating grade for mapping.484.6 Unrated Amount Outstanding 780.265 – – – – – – 3.791 160 NIB BANK LIMITED ANNUAL REPORT 2009 .043 29.952 2.5 Credit exposure subject to Standardized Approach 2009 (Rupees '000') Exposure Rating Category 1 2 3.810 52.725 – 300.Over 3 Months .266 3. 2009 41.811 25.2. Exposures Corporate Sovereigns Retail Banks JCR-VIS PACRA Fitch – – – Moodys – – – 3 – – 3 – – Standard & Poor – – – 3 3 3 3 3 41.155 51.181 3.Maturity Upto and under 3 Months in FCY .811 25.484.681 Net Amount 780.426 751.781.268 483.086.133 37.821 136.5 6 Unrated Unrated Unrated 1.353 3.307 Corporate Corporate Corporate Corporate Corporate Retail Banks .071.663.990 – 300.4 Types of Exposures and ECAIs used The Bank uses external ratings from local and foreign rating agencies.Over 3 Months .185.720.450.720.971.901 – – 1.

The Integrated Risk Management Committee (IRMC) is responsible for reviewing and highlighting key risk issues that require senior management’s attention. monitoring and controlling risks. RISK MANAGEMENT While the overall responsibility of risk management rests with the Board of Directors.Clearly defined risk management policies and procedures covering risk identification.Notes to the Consolidated Financial Statements For the year ended December 31. repurchase agreements (repos and reverse repos) and securities borrowing and lending transactions. an internally developed rating system is followed. such as letters of credit.An effective mechanism to ensure an ongoing review of systems. A credit approval process has been defined and is followed by all businesses in the Bank. reporting and control. duly approved by the Board.An effective management information system that ensures flow of information from the operational level to top management and a system to address any exceptions observed. . The Bank also conducts stress testing analysis across portfolios. It is inherent in loans. IRMC comprises of members from business units and the risk functions. measurement. maintaining an appropriate credit administration. which addresses Basel – II requirements. commitments to lend and contingent liabilities. The risk management heads are responsible for ensuring the implementation of the Bank’s risk framework in their respective domains in line with the business model of the Bank and also in compliance with SBP guidelines. thereby evaluating their effects on the value of the portfolios. The Board of Directors of the Bank has approved the risk management strategy of the Bank and entrusted the implementation to the Board’s Risk Management Committee (BRMC). An enterprise level assessment of risk composition is made at this platform and where necessary. for mitigating. keeping in view the risk management policies of the Bank. Following are the basic guiding principles of credit risk management that are embedded in the Bank and across business segments: . . they also report to the business head. The objective of credit risk management by the Bank is to ensure that the risk of default by a client or counterparty is reduced to a minimum. by anticipating changes and applying shocks of different intensity values. Initial credit approvals and extensions are only approved by Credit Committees established at various levels. ANNUAL REPORT 2009 NIB BANK LIMITED 161 . policies and procedures for risk management and procedures to adopt changes. . 2009 42. monitoring. Risk management heads for the business segments report to the integrated risk management head. . the Bank’s senior management has implemented a risk management framework with well defined policies and procedures.1 Credit Risk Credit risk is the risk of failure by a client or counterparty to meet its contractual obligations. acceptance. measurement and monitoring process and ensuring adequate controls. In order to measure credit risk. 42.A well constituted organizational structure clearly defining roles and responsibilities of individuals involved in taking as well as managing risk. The Bank has established an appropriate credit risk environment which is operating under a sound credit-granting process. recommendations are made to improve upon processes and procedures to further strengthen the risk framework.Review of portfolios by BRMC on a quarterly basis and by IRMC on a monthly basis to evaluate the health of the portfolio. For the CSEG and SMEC businesses.

55 0.367 12.919.586.607 93.822.092 1.494.453 2.485 19.144.64 2.00 1.749.400 142.445 30.62 1.329.228 473.475 2.76 2.099 3.00 0.79 0.37 4.40 0.199.775 2.03 0.018 466.24 0.505.848 997.302 2.713.421.58 1.01 0.00 2008 Agriculture.691 1.604.95 0.58 9.752 1.444.40 1.45 84.493 100.95 – 0.228 739.194.827.125 198.21 0.45 1.47 4.538 3.34 2.08 0.399 1.407 450.00 162 NIB BANK LIMITED ANNUAL REPORT 2009 .888 2.56 39.155.26 0.838.384 74.00 – 0.655 942.534 1.39 0.68 4. Hunting and Fishing Automobile and Transportation Equipment Cement.503 407.669.195 2.695 – 109.32 1.88 13.383 97.62 0.47 – 4.623 1.413 962. Storage and Communication Wholesale and Retail Trade Others 556.676 1.925.090.953.640 – 4.481 4.119.96 4.17 2.33 9.22 100.33 100.448.767 11.00 – 0. Gas.232 – 5.58 100.736 888.22 0.204.21 0.689.607 616.72 3.137 968.20 0.75 0. Water and Sanitary Services Sugar Textile Transport.43 0.37 1.50 0.490 9.992 406.56 5.00 0.338.315 13.193.10 1.877 41.289.203 103.23 0.41 46.028 94.285.993.092 381.587.143 1.496 1.69 13.28 11.714.481 0.525 200 34.09 0.504 9. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power.430 182.405.36 1.29 1.131 1.474 10.86 1.687 43.985.954 9.153.628.638.278 2.597 578.20 2.523 14.125 368.00 0.08 0.73 2.38 0.07 0.68 0.145 2.928.57 1.17 0.494 1.62 5.26 0.273.69 0.1 Segmental Information 42.594 143.98 0.322.187 0.43 1.49 0.420.74 3.063 439.1.60 0.12 0.04 2.005 4.298 6.558 2.090 3.32 1.34 1.04 7.15 2.47 0. Hunting and Fishing Automobile and Transportation Equipment Cement. Storage and Communication Wholesale and Retail Trade Others 400.79 2.00 2009 Deposits (Rupees Percent '000') 1.680 431.46 0.Notes to the Consolidated Financial Statements For the year ended December 31.41 3. 2009 42.109.86 0.610 456.987 1.124.42 1.46 0.857.753 2.87 – 5.000.078 387.00 76.62 0.963 2.815 2.799.211.11 30. Forestry. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power.252 302.40 10.578 384.721.1 Segments by class of business Advances (Gross) (Rupees Percent '000') Agriculture.021.95 – 0.322.851 239.995 577.33 0.642.24 0.299 2.858 10.469.280.060 104.36 0.273 4.639.1.25 2.72 0.794.25 1.381.877 244. Gas.02 3.724.31 3.18 1.33 0.23 1.75 1.350 889.060 615.18 31.51 3.87 9.596 848.584 1.60 100.169 200 – 2.910 2.698 3.778 982.537.294 491.305 35.15 1.40 0.034.91 100.623 1.771 559.14 0.664.1.63 0.619 4.822 309.639.307.433 187.97 4.09 4.83 14.427 855 363.972.546 318.316 675.023.426 4.910 5.624 3.15 0.557 4.473 1.05 1.051.123 398.077 808.757 0.40 0.520 1.37 0.827 0.453 – 460.133 2.459 211.770 – 368.084 4.243.329.709 123.432.991 139.281 689.984 30.261.007 28.13 80.07 0.215 1. Water and Sanitary Services Sugar Textile Transport.437 – 81.40 2.64 1.37 0.239 1.126.42 3.982 142.76 2.62 100.24 10.93 10.857 92.582 1.590.59 4. Forestry.223 910.46 0.61 0.813 – 317.238.442 1.566 282.122.00 Contingencies and commitments (Rupees Percent '000') 1.385 4.03 – 0.094 5.161.560 9.449.878 1.966 731.71 1.37 – 0.798.

089 532.481 1.711 342.812 42.157 716 7.505.210 854.334 1.2 Segment by sector 2009 Advances (Gross) (Rupees '000') Public / Government Private 5.746.092 19.457 – 22.534 658.660 97.455 22.4 Details of non-performing advances and specific provisions by sector Public / Government Private – 23.Notes to the Consolidated Financial Statements For the year ended December 31.812 22.016 – – 168.131.517 236.597.827 4.223.005 848.259.84 80.068.79 100.410 950.274 214.93 100.156.274 295.043 589.733 368.259 1.658.972 – 292.715.365 309.22 100.654 103.1.087.183 94.00 20.872 9.00 42.00 3.001.515 (Rupees '000') Agriculture.256 11.715.000.939 56.223.997.1.838.1.429.285 83.526 497 380.78 94.888 345.3 Details of non-performing advances and specific provisions by class of business segment 2009 Classified Advances Specific Provisions Held 4.623 485. Water and Sanitary Services Sugar Textile Transport.645 63.746. Forestry.798.129.321 80.362 93.715.878 Contingencies and commitments (Rupees '000') 2.807 103.064 23.527 261.960 5.707.937 16.638 73.187 Percent 5.245. Hunting and Fishing Automobile and Transportation Equipment Cement.881 349.777.789 261.069 490.571 814.666 74.446 1.302.1.955 66. 2009 42.243 791.145 15.528 59.337 175.272 11.821 96.144.720 155.106 467.200.196.754 2.442.921.07 86.429.736 439.498.429.148 69.812 – 16.054 – 304.280 900. Gas.950 123.056.762 616.851 191.417 3.322.943 309.526 23.574 100.136 1.1.071.771 1.334.757 Deposits (Rupees '000') 12.430 1.82 98.05 98.521 9.249 8.1.457 2008 Classified Advances Specific Provisions Held 124 365.766 570.430 759.600. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Financial Food and Beverages Footwear and Leather Garments Individuals Mining and Quarrying Oil and Gas Paper and Printing Power.746.019.198 1.515 16.884 1.233 467.00 Percent 13.253 – – 174.225.536 3.00 Percent 1.526 – 15.076 675.457. Storage and Communication Wholesale and Retail Trade Others 35.465 89.557 92.824 4.791 368.457.457.16 100.18 100.146 179.457 15.816 237.00 2008 Public / Government Private 1.417 669.200 250.995 318.515 ANNUAL REPORT 2009 NIB BANK LIMITED 163 .237 121.95 100.21 95.891 745.376 1.

review of mark to market portfolio etc.273 11.572. The core objective of foreign exchange risk management is to ensure that the exposure of the Bank remains within desired levels of risk appetite.206.010 5 19. such as interest rate risk due to mismatch of loans and deposits.299. Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 198.869 477.797 206.563 (2.885.190 1. Furthermore.209. 42. monitoring of foreign exchange exposure limits.182.910.096 8. such as credit limits. the Bank monitors Value at Risk (VaR) and Price Value Basis Point (PVBP) for the foreign exchange portfolio in order to estimate any potential losses due to changes in price.328 – – – – 41.944 1.Notes to the Consolidated Financial Statements For the year ended December 31.2.588 782. Market risk exposure may be explicit in the portfolio of equities and foreign currencies that are actively traded.153 60.822 177. The Bank has implemented global / regulatory best practices in order to manage the inherent risk of product and market.212 511.347.267. it may be implicit.479) 1.957 16.533 165. 2009 42.476.786 6.513 50.669 5.428. Conversely.457 164 NIB BANK LIMITED ANNUAL REPORT 2009 .669 157.538.1 Foreign Exchange Risk Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Bank also monitors maturity mismatch gaps to identify any potential risks. The Bank recognizes that it may be exposed to market risk in a variety of ways.861 8.2 Market Risk Market risk is primarily composed of price risk and arises out of treasury trading and investment activities.591 11. Market risk may also arise from activities categorized as off balance sheet items.054 4.059 23.892 7. It is the risk that the value of on and off balance sheet positions of the Bank will be adversely affected by movements in market rates or prices.264 41.

296 (39.341 – – – – 38. Price risk associated with equities could be systemic or idiosyncratic.297.2.212 607. The Bank is using Market Risk tools such as PVBP.110 (3.132 964. the Bank periodically applies a VaR methodology to assess the market risk positions held.Notes to the Consolidated Financial Statements For the year ended December 31.290 138. The Bank is also using Market Risk tools such as Alpha. Fixed rate debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities.197. Duration.467 14. Beta and Sharpe ratio for risk measurement and assessment.997. Fixed income securities are subject to the risk of price volatility due to interest rate movements.044 49 14.963.2 Equity price risk and Fixed Income rate risk The Bank has a set of approved notional & dealer limits for managing risk across the trading & banking book. ANNUAL REPORT 2009 NIB BANK LIMITED 165 .003) 11.301 227.066 4.310) (8.117 42.030.451) (6.696.520.700 12.177.016 16. In order to manage the market risk in the trading book.151 38.424.967 2. 2009 2008 Off balance sheet items Net foreign currency exposure Assets Liabilities (Rupees '000') Pakistan Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 171.272.024 7. Equity Price Risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of the Bank.138 6.491 21.291.227 129. Parallel shift and Non Parallel shift for risk measurement and assessment.159 561.681 1. Currently the Bank is using variance covariance model for calculating VaR across both the equity & fixed income portfolios.884 1.438.441 176.632) 2.

815.616 (13.266.622.sale Off-balance sheet gap Total Yield / Interest Rate Risk Sensitivity Gap ANNUAL REPORT 2009 Cumulative Yield / Interest Rate Risk Sensitivity Gap .654) 967.109 5.490 – 4.539 2.531 52.570 373.330 – – – – – – 8.024.128) (1.327.12% 167.678 270.726 3.021.752 12.325) 42.74% 15.45% 13.125 13.668 677.271 1.707 (2.178.458 (39.973.708.612 – – – 265.883 1.557 59.841 780.363 27.751 62.204 32.574.833 (10.120.141.960.248 – – – – – – 680.56% 12.998 (511.321.436 54.835.401.390.834. 2009 166 2009 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Above 10 Years Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Not-interest bearing financial instruments NIB BANK LIMITED 0.586.059 2.917 5.224 5.988.944.970 – 967.551 7.600 – – 92.051) 18.986 4.887 360.681.000 – – 1.945 – 8.650.592.376.786 4.498.190.311.546.906.101.365 45.079 17.71% – 164.770 387.222.714 891.000 – – – – – 3.222.121.574.378.878 10.015 3.296.411.602 16.894.405.421 7.115.832 – – – 84.925 9.819.609.793.769.12% 10.186) 1.purchase Foreign exchange contracts .009 30.496 – 265.831.236 899.207 – 24.647 – – – – 628.453) (16.737 3.997.838.361 6.3 Mismatch of Interest Rate Sensitive Assets and Liabilities On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Foreign exchange contracts .623 18.096.562 31.600.060 889.496.997.945 1.411 361.258 5.754.306.402 – – 1.250.684 3.856 28.262.186) 54.354 – 4.600 – 3.782 (1.619.594 48.932.75% 13.521 22.328.935.117.167.202.306.327 – – – 3.425 – 861.629.453) 22.496 5.921.972 3.671) (25.016 17.388 – – 698.005.098.848 – – 470.2.Notes to the Consolidated Financial Statements For the year ended December 31.256 1.202.430 – 10.618) – – – 4.457 – 945.306.306.207 – – – – – – 337.834.949.612 – – – – – – 680.009 – – – – 4.997.939 12.367.945 1.141.519 14.767.120.562) (39.271 1.233.909.831.970 23.306.682 29.664 3.301) 55.019 240.667 4.125 1.647 (9.486.554 28.293.799 3.973.425.306.979 100.841 4.275 1.985.644 – – – (13.523.00% 0.729 42.082.958.887 5.400 – 3.811.780.705 – – – – – – – – – 46.747 18.425 – – – 7.181.125 7.406 7.992 24.020 (37.50% 7.597.684.002 3.325) 24.835.

670.488 – – – 2.333 948.654 34.702.355) 20.432.301) 50.146 – – – – – – 823.Notes to the Consolidated Financial Statements For the year ended December 31.312 – – – 261.083 4.344.607 (12.281 1.338.713 (7.200 5.921.609 – 2.578.000 – – – – 6.42% 10.111.366 103.352) 15.901.681.084 23.530.765 8.635 3.352.193 2.326.533 976.552.100 – 656.848 273.241 – – – 367.401.147 16.136 – – – – – 1.452.958 10.852.432.858.636. 2009 ANNUAL REPORT 2009 2008 Exposed to Yield / Interest rate risk Effective Yield / Interest rate Total (Rupees '000') Upto 1 Month Above 10 Years Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Not-interest bearing financial instruments On-balance sheet financial instruments 0.116.040 – – – 569.10% 11.249.445.886 656.25% 14.060.302.999.886 6.908 5.346.295.939 4.323.798.621 31.754 3.749 – – – – 1.858.150 – – – 216.607 14.255.607 1.616.752 4.084 – 20.283) (7.014.001 – – – 2.156.682.08% 14.900.171.780.427 8.692 11.002 688.183.195 13.221.166 2.759 21.989.390.459.578.771 1.503 (1.036 562.806 – 511.858) 14.951.019 12.604 35.93% 15.614 1.806 5.478 1.882 7.283) 44.869 9.853 823.446 741.216 31.726.628 80.239.746 72.802 10.227.646 – – – – 5.sale Off-balance sheet gap Total Yield / Interest Rate Risk Sensitivity Gap 52.344.617.879 – – – – 3.950 14.958) 33.723 (30.682 – 607.352) Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments 40.627.558.267.767.258 3.052.558 61.013.703 1.302.224.632.501 Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Other assets Liabilities – 9.752) (13.131.352.761 27.681.209.604 1.299.038 1.819 12.288.purchase Foreign exchange contracts .402 Foreign exchange contracts .761 – 12.792.241 (4.156.670.118.126.312.018 1.008 – 5.107) Cumulative Yield / Interest Rate Risk Sensitivity Gap NIB BANK LIMITED 167 .311) (14.217 – 3.067.880 – – 1.513 – – – 4.571.999.146 – – – – – – 1.021.98% – 138.999 – 2.135.385.130.536.590.143.646 1.725.866 300 – – 512.031.564 15.625.688 9.892.599.115 – – – – 1.571 – 8.90% 0.886 4.357.366 15.550 – – 1.682 – – – 7.092 3.901.951.607 (12.863.281 823.200 – – 2.475 – – – 273.038 1.532.016.739.891 4.773 (25.710 13.004 126.893.651.440 6.864.192 19.047 22.100 (13.450 868.049.17% – 137.288 – – – 5.041.

894 (7.997 6.014. under both normal and stressed conditions.496.960. Scenarios encompass both normal and stressed market conditions. by the inability of the Group to settle its liabilities on their due dates.104.138 13.623.797 198.538.887 59.000 – – 3.650.246 9.081.778. and regular liquidity stress testing under a variety of scenarios.684 – – – – – 1.327 4.041 338.162 165.314.834.479 360.999) 3.314.780.117. The Bank maintains its liquidity by keeping a level of liquid assets that is considered sufficient to settle its obligations when due.878 3.437.350 (206.214.885.139 299.615.058.751 800 319.406 206.402 1.321.604.204 45.018 4.347.949.729) 41.933 – 265.944 – 270.351.263.841 780.048.600 4.254 15.443 18.012 1.121 3.751 1.212 41.669 68.834.940 197.939 4.047 100.597.289 – – – 7.281 5.218.628 8. among others.413 183.715 – 337.430.434.554 – 861.517 91.842.043.738 2.109 5.1 Maturities of assets and liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Net assets Share capital Reserves Accumulated loss ANNUAL REPORT 2009 Deficit on revaluation of assets-net .294 1.838.612 – 1.656 360. NIB BANK LIMITED Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Above 10 Years 1.718.559 2.395 1.624 1.551 26.207 62. The Bank's objective of liquidity management is to ensure that it will always have sufficient liquidity to meet its liabilities when due.001.540) – – – – – – 32.684 5.873 2.013 30. 2009 168 2009 Total (Rupees '000') 8.037 5.787.406 3.and off-balance sheet assets and liabilities.515) 65.003.017 102.770 4.457 40.976 47.135.241.948.997.820.172 25.473 25.606 1.336 733. 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.121.802.066 (13.542 694.249 – 32.373.328 124.996.019 240.494 255.865 5.335.678 2.176.053 1.483 8.521.293.275 – – – – – – – 2.681.780.468) 114.322.996.561 787.309 622.436 (472. - Ensuring the Bank has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.690 – 211.347.684.979) 41.925 1.775 42.110.001.940.800 19.472 1.847 – 800 2.602 24.498.198 269.523.411 361.211 30.690 14.574.878 3.615. Exposure to liquidity risk is also monitored through regular review of liquidity risk limits and escalation of any liquidity risk limit excesses to senior management.820.275 3.307.021.735 8.457 (45.887 360.007 146.979 84.661 49.707.913 8.207 – – 9.342 12.693.137 26.850 28.000 1.600 145.946 5.666. 42.3.487 2.730 1.361 236.427.230 12.365 92.398.271 8. The Bank carries out careful monitoring and control of the daily liquidity position.441 61.391 10.819.017 38.275 – – – 373.600 33.046.464.070 386.598 14.622.404 132.824 61.574. The Bank manages its liquidity risk through - Controlling the cash flow mismatch between on. without incurring unacceptable losses.669.388 1.3 Liquidity Risk Liquidity risk exposure is the risk caused.411.684.775 The liquidity risk policy is formulated keeping in view SBP's guidelines on risk management and international best practices.434.000 73.185 6.578 (999.059 – 387.128.810 – – – 3.032.238 248.Notes to the Consolidated Financial Statements For the year ended December 31. - Maintaining stable and diversified sources of funding.551.131.

.444 5.210 289.002 688.357.601 191.527 12.372 4.793) 40.398 129.759 5.200 5.600 130..019 12.400 5..787 215.005. all demand assets and liabilities such as running finance...523.067.895.065 3....807 10.600 164...213..- Assets 9.101 – 800 – 800 66.878.532 68...709.326..945.065 4.831...261 577..533.707.The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7.021. based on contractual maturities. current accounts and saving accounts are shown as having a maturity upto one month.. 169 .964 – – – – – – 37..597 260.425..011.930 749 4.143 302...999...798....536..651.. as these flows normally occur over a period of one month to three years.368 138.533 976...882 11.810 1.475.628 80.246.344.437.....654 26..110 38.276.241 1...597..135.083 2.....272....819 2.852.450 196...813 8.. Consequently.866 300 3.. 2009 ANNUAL REPORT 2009 .216 216...994.850 43..667 57.644 55.564 569..534 1.091 1...115.495 3...722.004.084 23.432 – 37.412 1.097 3.206...432..780.225 311.332.228 3.478 7.584.000.924...381.237 48.607 1. Consequently.582 (81.721) 24.366 103.668 1..497 18.126 6.117 28. However.084 – – – – 68.172 514.226 – – – 2..300. based on historical behaviour..494 15..624..429 12..945 405. as these flows normally occur over a period of one month to three years.964 Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Net assets Share capital Share deposit money Reserves Accumulated loss Deficit on revaluation of assets-net NIB BANK LIMITED The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7..271 12.024. However....391..162 (2.130 1.354 121.442 7..621 31..996.869 – – – – – 868..130.349. management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote.710 – 607..116 – 511. management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote....117 (14..684 (8.192 1.880 667.696.019 – – – – – – 9.543..193 3.450 – – – – – – – – – 1.989.868.209..475 72..571 82.878.424.249.158.354.. based on historical behaviour.669.733 33...326.951 26..712 145..692 7.890 219.164 6..903 10. all demand assets and liabilities such as running finance.706 3..539 4..899.006 371.361 59.756.550 1.181.624.894 263.752 2.721) (81..259 242.628. Financial Instruments: Disclosures.311 2.565 11..272..691. 2008 Total Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Above 10 Years Notes to the Consolidated Financial Statements For the year ended December 31.211 406..304 176.776 12.434 141..450 868..620 28. current accounts and saving accounts are shown as having a maturity upto one month.382.210.213.169.505 (11..057 3.725..283 98..258.(Rupees '000') .432..345 43.663 – 367..459.227 1.924.918..040 12.293.001 10.199 86. Financial Instruments: Disclosures.017 15.556 222.476...092 3.167.045) 38..678 43.461 492.379) 1. based on contractual maturities....109.008 130..635 6.424 247.357..371 5.641) 2.000 8.856 21...

assess. 2010 by the Board of Directors of the Group. Recruiting skilled resources for Operational Risk Management. control and reporting of operational risks. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner through a framework of policies. monitoring. The IRMC has the responsibility to supervise and direct the management of operational risks and key operational risk exposures. DATE OF AUTHORIZATION FOR ISSUE These consolidated financial statements were authorized for issue on February 26. Rozario Chairman / Director Asif Jooma Director Syed Aamir Zahidi Director 170 NIB BANK LIMITED ANNUAL REPORT 2009 . 2009 42. The key objectives of Operational Risk measurement and management include: Ensuring continued solvency of the Bank through capital adequacy and enhanced understanding and management of significant operational risk exposures. procedures and defining end to end information flow to establish a vigorous governance infrastructure. The Bank has undertaken the following high-level strategic initiatives for the effective implementation of Operational Risk Management: 43. Khawaja Iqbal Hassan President / Chief Executive Francis A. monitor. people and systems or from external events. assessment. Ensuring senior management attention on significant operational risk exposure areas and that risk mitigation is given prioritized focus. Ensuring that customer impact is minimized through proactive and focused risk management practices.4 Operational Risk Management Operational risk is the risk of loss resulting from inadequate or failed internal processes.Notes to the Consolidated Financial Statements For the year ended December 31. Developing policies. control and report such risks. The IRMC is also responsible for ensuring that adequate and appropriate policies and procedures are in place for the identification. procedures and tools to identify.

HOUSE NO. HOUSE NO. B-44/2 TARIQ ROAD WARD NO. KARACHI RAJA KHURRAM SHAHZAD 61101-1759279-3 MUHAMMAD NAZIR RAJA 473 44 – 517 473 44 2 RAJA KHURRAM SHAHZAD. LAHORE ABDUL BASIT 42501-6387417-7 MUHAMMAD SIDDIQUE 38 – 508 470 38 – 508 10 ABDUL BASIT. A-37/1 MALIR TOSEE COLONY KHOKRAPAR. KARACHI SHAHID ALI 35202-3469320-3 SHARAFAT ALI 677 50 – 727 677 50 – 727 11 SHAHID ALI. 29-1 STREET NO. KARACHI SADIA AMIR 35202-2618206-6 AMIR ANJUM 470 9 SADIA AMIR. 941 D TYPE COLONY 36.1 S. 6 MUHALLA RAJPOOT PARK SHAHDARA TOWN 5. KARACHI SAQIB AYAZ 42201-9218623-7 KHURSHID AHMED KHAN 485 71 – 556 485 71 – 556 NIB BANK LIMITED ANJUM MUSHTAQ 18 SAQIB AYAZ. HOUSE NO. FLAT NO. B . Name & Address of borrower NIC No.152 BLOCK NO. FARHAT COTTAGE STREET NO. B 7 2ND FLOOR FALAK NAZ CENTRE MAIN SHAHRAH-E-FAISAL. HOUSE NO. HOUSE F 731 SETLITTE TOWN 26. LAHORE MEHMOOD ALAM 36302-3396791-5 MUHAMMAD LATIF BHUTTA 677 50 – 727 677 50 – 727 14 MEHMOOD ALAM. FLAT NO. RAWALPINDI FAROOQ AHMED KHAN 17 FAROOQ AHMED KHAN. NEAR REHMAT BAKERS. L NORTH NAZIMABAD. HOUSE NO. LAHORE MUHAMMAD IRFAN 35202-9442739-1 497 41 – 538 497 41 – 538 13 MUHAMMAD IRFAN. 1 MUHAMMADI KOT BAND ROAD. FLAT NO A 3 BEDROCK APARTMENT RAMSEY ROAD FRERE TOWN. HOUSE 5 STREET 6 MOHALLAH BAGH MUNCHI LAHDAHA KACHA RAVI ROAD.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. POST OFFICE STOP KALAN TEHSIL & DISTRICT 35. 2009 (Rupees '000') Name of Individual / partners / directors Name AHMEDI KHATOON 42501-8367583-4 MOHUDDIN AHMED QADRI 658 55 – 713 658 55 – ANNUAL REPORT 2009 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 713 Annexure . HAMEED 481 51 – 802 70 – 872 6 BASIT HAMEED. 15 MIAN GHULAM QADIR ROAD SWAMI NAGAR. D-14/1 BLOCK NO. 9 GULSHAN-E-IQBAL. C/10 GROUND FLOOR PLOT NO. HOUSE NO. HOUSE NO. FLAT 4 2ND FLOOR 31 C LAIN 15 EXTENTION 2 DHA. ISLAMABAD MUHAMMAD RASHID 42401-7517058-5 MUHAMMAD ARSHAD 483 39 – 522 483 – 517 3 MUHAMMAD RASHID. A. KARACHI 42201-6808625-5 MUSHTAQ AHMED 461 68 – 529 461 68 – 529 171 . KARACHI 42101-4224761-5 37405-3556042-5 SYED SARFARAZ HASAN CHAUDHRY CHARAGH DIN 626 623 81 78 – – 707 701 626 623 81 78 – – 707 701 16 SALEEM JAHANGIR. 5/X NORTH KARACHI. KARACHI ADNAN SAEED 42201-4418072-9 MOHAMMAD SAEED 677 50 – 727 677 39 – 522 4 ADNAN SAEED. 1 AHMEDI KHATOON.No. KARACHI TARIQ MEHMOOD NAVEED AHMED KHAN 42101-5060733-9 MUHAMMAD RASHEED 540 40 33100-1941986-1 KHALIL MUHAMMAD 535 45 – – 532 481 51 – 532 7 TARIQ MEHMOOD. NA 223-A STREET 7TH ROAD NEW MALLPUR. MULTAN SYED MUHAMMAD MUJEEB HASAN SALEEM JAHANGIR MUHAMMED RAFIQE TAHIR 541 50 – 591 541 50 – 591 15 SYED MUHAMMAD MUJEEB HASAN. FLAT NO. LAHORE BASIT HAMEED 42301-7952967-3 S. LAHORE RAHEEL MALIK 35202-2461848-3 MUHAMMAD ANWAR 480 42 – 522 480 42 – 522 12 RAHEEL MALIK. FL/12 SECTOR NO. FAISALABAD 580 580 535 540 45 40 – – 580 580 8 NAVEED AHMED KHAN. 05 REHMAN GANJ KHOKHAR ROAD BADAMI BAGH. HOUSE NO. 25 STREET NO. GULSHAN-E-HADEED BIN QASIM TOWN. A-3106 PHASE II. KARACHI MUHAMMAD YOUSAF 35202-2753273-3 IQBAL HUSSAIN 802 70 – 872 50 – 727 5 MUHAMMAD YOUSAF. RAWALPINDI 37405-6676668-9 SHEIKH MUHAMMAD AYAZ 485 71 – 556 485 71 – 556 19 ANJUM MUSHTAQ. 27 BLOCK C5 RABIA FLOWER ABUL ASPHANI ROAD GULSHAN-E-IQBAL. NAWAN SHER.

HOUSE NO. HOUSE NO.No. LAHORE 27 ABDUL WAHID. Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief NIB BANK LIMITED MUHAMMAD KHALID 35201-0610345-7 MUHAMMAD SHAFI 450 59 – 509 450 59 – 509 SYED USMAN ALI 35202-2583375-7 MUHAMMAD IQBAL 436 64 – 500 436 64 – 500 AHSAN RAZA 35403-6861581-1 SIRAJ DEEN 522 48 – 570 522 48 – 570 MUHAMMAD JAVED 33100-6605683-1 MUHAMMAD AMIN 558 52 – 610 558 52 – 610 ABDUL SATTAR ANJUM 35202-3014209-5 FAQEER MUHAMMAD 519 44 – 563 519 44 – 563 MUHAMMAD ALI SHAHID 35201-9890700-5 SHAHID HAMEED AMJAD 471 39 – 510 471 39 – 510 ABDUL WAHID 33100-4986843-5 MUHAMMAD SADIQ 486 40 – 526 486 40 – 526 ATEEQ UR REHMAN 42201-4190649-7 ABDUL GANI 622 52 – 674 622 52 – 674 IMTIAZ AJMAL 31302-0413236-9 ATTA ULLAH KHAN 531 45 – 576 531 45 – 576 NADEEM SULTAN 35201-4794109-9 ALLAH DITTA 500 42 – 542 500 42 – 542 MUHAMMAD WAQAS KHURSHEED TANVEER IQBAL 37405-1726448-3 33303-6105238-3 MUHAMMAD KHURSHEED AKHTAR GHULAM SARWAR 641 53 – 694 641 53 – 694 780 72 – 852 780 72 – 852 AMAN SADIQ 35201-8802503-7 SADIQ NAWAB 569 53 – 622 569 53 – 622 TAUFEEQ AHMED 36302-8075018-1 MOHAMMAD RAFIQUE 709 60 – 769 709 60 – 769 MOHAMMAD FEROZ 42201-4266001-1 HAJI QASIM 604 44 – 648 604 44 – 648 AZEEM KHAN 35202-2526802-3 ATTA UR REHMAN KHAN 663 54 – 717 663 54 – 717 MUDASSAR ABDULLAH 35202-2556548-7 MUHAMMAD ABDULLAH 616 49 – 665 616 49 – 665 20 ASGHAR ALI. 5 MUHAMMAD ALI PARK PINDI DASS ROAD SHAHDARA. LAHORE 34 TAUFEEQ AHMED. 9 STREET NO. KARACHI 36 AZEEM KHAN.Annexure . 27/B-1 STREET NO. MULTAN 35 MOHAMMAD FEROZ. LAHORE 22 SYED USMAN ALI.3 GULISTAN-E-JOHAR. LAHORE . KARACHI 29 IMTIAZ AJMAL. HOUSE 222 STREET 1 JILANI PURA SARAFA BAZAR SATIANA ROAD. HILL TOWN BANGLOWS BLOCK . HOUSE NO. HOUSE 176 BLOCK 1 1ST FLOOR SECTOR B II TOWN SHIP 5. 149 BLOCK NO. 1 BLOCK Z SCHEME NO. BISMILLAH PARK STREET NO 5 IQBAL SHAHEED COLONY. HOUSE NO. LAHORE 26 MUHAMMAD ALI SHAHID. HOUSE E-141/28 STREET 5 FIRDUS PARK GHAZI ROAD 5. 3 MUHALLAH SHAHEEN PARK LAL PULL MUGHAL PURA 5. 2 NEAR TELENOR TOWER. HOUSE 102 SUPER MEHAL APARTMENT HASRAT MOHANI ROAD. HOUSE 442 KOCHA HAJI PIR INSIDE YAKI GATE 5. FAISALABAD 28 ATEEQ UR REHMAN. LAHORE ANNUAL REPORT 2009 37 MUDASSAR ABDULLAH. HOUSE 374 STREET 3-A NASEERABAD KOHINOOR MILLS PESHAWAR ROAD. HOSUE 389 B PAK BLOCK ALLAMA IQBAL TOWN 5.1 172 (Rupees '000') Name of Individual / partners / directors Name ASGHAR ALI 42301-1099243-9 FAZAL HUSSAIN 454 57 – 511 454 57 – Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. 2009 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Total 511 S. LAHORE 32 TANVEER IQBAL. 07 RIFFLE RANGE KORAY STOP WALTON ROAD. LAHORE 24 MUHAMMAD JAVED. HOUSE NO. LAHORE 30 NADEEM SULTAN. LAHORE 23 AHSAN RAZA. Name & Address of borrower NIC No. 35/8 TIPU SULTAN COLONY HASSAN PERWANA. RAWALPINDI 33 AMAN SADIQ. FLAT NO. R-36. HOUSE 25 UMER STREET SUNNY PARK SAEED KARYANA STORE MUGHAL PURA. 7/A JINNAH COPRATIVE HOUSING SOCIETY HILL PARK. FAISALABAD 25 ABDUL SATTAR ANJUM. STREET NO. HOUSE 1663 1ST FLOOR IMRAN STREET 4 FEROZ PURA RAVI ROAD. KARACHI 21 MUHAMMAD KHALID. LAHORE 31 MUHAMMAD WAQAS KHURSHEED. HOUSE 4 UPPER PORTION MAIN SUIGAS ROAD ALLAMA IQBAL COLONY SHAHDRA 5.

KARACHI 43 SHABANA KHAWAJA MUHAMMAD. LAHORE 40 MOHAMMAD INAM. HOUSE NO.1 ANNUAL REPORT 2009 NIC No. STREET NO. HOUSE NO. KASHIF PERVEZ 35201-5113920-9 PERVEZ AKHTAR CHOUDHRY 552 69 – 621 552 69 – 621 MOHAMMAD INAM 42401-1935916-9 MOHAMMAD AFZAL HUSSAIN 541 67 – 608 541 67 – 608 AFTAB AHMAD 35202-0827638-7 ABDUL REHMAN 517 64 – 581 517 64 – 581 LIAQUAT HUSSAIN 42301-6142963-9 MUHAMMAD YOUNAS 481 82 – 563 481 82 – 563 SHABANA KHAWAJA MUHAMMAD 42201-3319748-4 KHAWAJA MUHAMMAD 477 81 – 558 477 81 – 558 SYED SHAFQAT ALI QADRI 42101-1942367-9 SYED HAFIZ HASHMAT ALI QADRI 472 41 – 513 472 41 – 513 ABDUL KHALIQ 42101-6839038-5 ABDUL WAHAB KHAN 472 70 – 542 472 70 – 542 CHAUDHRY ASIF NAWAZ 37405-0369141-1 MUHAMMAD ASLAM 468 80 – 548 468 80 – 548 SYED TASNEEM HUSSAIN ZAIDI 42101-1855151-7 SYED MUZAHIR HUSSAIN ZAIDI 468 80 – 548 468 80 – 548 ALI SHAYAN 42201-4397279-9 MOHAMMAD SARFARAZ 463 80 – 543 463 80 – 543 MUHAMMAD RIZWAN SARWAR MUHAMMAD YOUSAF BAJWA 35201-0148958-1 35202-8828868-7 MUHAMMAD SARWAR MUHAMMAD YASIN BAJWA 440 438 66 64 – – 506 502 440 438 66 64 – – 506 502 GHULAM NABI 33100-0661458-7 JAN MUHAMMAD 560 50 – 610 560 50 – 610 MUHAMMAD AMIR 35201-2926934-7 MUHAMMAD ALTAF 468 39 – 507 468.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. KARACHI 46 CHAUDHRY ASIF NAWAZ. 1 BAZAR NO. R 500 SECTOR 8 NORTH KARACHI 34. HOUSE NO. LAHORE 50 MUHAMMAD YOUSAF BAJWA. KARACHI NIB BANK LIMITED 55 ARIF ISMAIL. 8A. KARACHI 41 AFTAB AHMAD. LAHORE 53 MUHAMMAD ADREES. P-974 CHAK NO. LAHORE 173 56 MUHAMMAD BASIT SALEEM. 20 FEDERAL B AREA SUHRAB GOTH 34. P 47 STREET 3 BLOCK X MAINDA TOWN. 99 BLOCK NO. 3 MUHALLA JINNAH PARK KOT SHABDIN SHADRA. HOUSE 81/1 STREET 1 CHAMPIONS COLONY GULZAR-E-QUAID. HOUSE NO. 2009 (Rupees '000') Name of Individual / partners / directors Name MUHAMMAD JAFAR 33100-7571386-9 MUHAMMAD ISHAQ 450 59 – 509 450 59 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total 509 Annexure . FAISALABAD 54 MUHAMMAD SHAHID AKHTAR. FLAT NO. KARACHI 44 SYED SHAFQAT ALI QADRI. LAHORE 42 LIAQUAT HUSSAIN. 2. FLAT 604 BLOCK I RUFI LAKE DRIVE BLOCK 18 GULISTAN-E-JOHAR 34. KARACHI 48 ALI SHAYAN. 4 1ST FLOOR SOBRAJ YELLOW HOUSE I. HOUSE 280 BUKHARI COLONY MANGHOPIR ROAD 34. STREET NO.No. FLAT B-105 HAROON HEAVEN BLOCK A SECTOR 15 A/1 BUFFER ZONE. A/32 UMER FAROOQ TOWN KALA PUL NEAR NAVEL HEIGHTS. 01 D II GULSHAN RAVI 5. E 112/2 NEW SUPER TOWN 5.I. SHALIMAR LINK ROAD SOHUWARI MUGHAL PURA. C GULSHAN-E-RAVI. P-18 STREET NO. Name & Address of borrower 38 MUHAMMAD JAFAR. 2 MUHAMMAD PURA. Z-202 SARA APARTMENT GULZAR-E-HIJRI. KARACHI 45 ABDUL KHALIQ. 39 – 507 MUHAMMAD ADREES 33100-7528667-3 MUHAMMAD SHAREEF 651 54 – 705 651 54 – 705 MUHAMMAD SHAHID AKHTAR 42301-7858788-3 ABDUL KHALIQ 557 41 – 598 557 41 – 598 ARIF ISMAIL MUHAMMAD BASIT SALEEM 35202-2487168-7 35202-1786054-7 SH MUHAMMAD ISMAIL MUHAMMAD ANAYAT ULLAH 472 642 38 48 – – 510 690 472 642 38 48 – – 510 690 S. FAISALABAD 39 KASHIF PERVEZ. HOUSE NO. LAHORE . 203 RB MANA WALA. FAISALABAD 52 MUHAMMAD AMIR. SINDH CHOWK 3 KILOMETER CHUNGI STOP SINDHU CHOWK KAMAHAN DAKHANA LINK FEROZPUR ROAD LAHORE CANTT KHANS. LAHORE 51 GHULAM NABI. RAWALPINDI 47 SYED TASNEEM HUSSAIN ZAIDI. 46/5. KARACHI 49 MUHAMMAD RIZWAN SARWAR. HOUSE NO. HOUSE 4 STREET 4 ASLAM PARK SHAHDRA TOWN. R 1096 BLOCK NO. CHUNDRIGAR ROAD.

KARACHI 71 MUHAMMAD TANVEER. LAHORE 70 SAEED AHMED. 486 BLOCK NO. 3 BLOCK-B BAHRO WAL COLONY ABC ROAD. HOUSE P-1029-C/1 A MUHALLAH DIGREE COLLEGE ASGHAR MALL ROAD. LAHORE ANNUAL REPORT 2009 74 MUHAMMAD JAMAL. RAWALPINDI 61 TANZEEM AKHTER. 1 LANE 5 MOHALLA GULISTAN COLONY. KARACHI 62 JAVED IQBAL. HOUSE B-215 BLOCK 10 GULSHAN-E-IQBAL 34. HOUSE C-78/1 BLOCK J NORTH NAZIMABAD. RAWALPINDI 69 MALIK MUHAMMAD SHAHBAZ. HOUSE NO. 1343 SHARIF CHOWK D TYPE COLONY. A-257 PHASE I GULSHAN-E-HADEED. FAISALABAD 64 REHAN AHMED KHAN. 207 2ND FLOOR ARSHIA HEIGHTS F. R 57 SECTOR 14 A SHADMAN NORTH NAZIMABAD TOWN. HOUSE NO.1 174 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. AREA. FAISALABAD 73 NADEEM AHMED BUTT. NW-712 SAID PUR ROAD. HOUSE NO. FLAT NO.No. V EXT DHA 34. HOUSE NO.B. HOUSE NO.B. E-18/25. FAISALABAD 67 SYED SHAH NAWAZ AHMED. FAISALABAD 63 MUHAMMAD RAMZAN. 46/10 -A 2 STREET NO. P-3 ST. NO. Principal written off Interest/ Mark-up written off Other Financial Relief SHEIKH SAJID HUSSAIN 34104-2331782-3 SHEIKH ASSHAD HUSSAIN 508 62 – 570 508 62 – 570 NAVEED AHMAD 37405-1218023-7 ABDUL MAJEED 688 100 – 788 688 100 – 788 TANZEEM AKHTER 42000-0146089-1 MUHAMMAD BASHIR 472 41 – 513 472 41 – 513 JAVED IQBAL 33100-0120287-3 MIAN MANZOOR HUSSAIN 470 69 – 539 470 69 – 539 MUHAMMAD RAMZAN 33100-2564082-5 MUHAMMAD ASHRAF 468 68 – 536 468 68 – 536 REHAN AHMED KHAN AGHA ZUBAIR 42301-7669562-7 AGHA FAQUIR MUHAMMAD 454 42301-9153803-9 EJAZ HUSSAIN 471 35 66 – – 506 520 471 454 35 66 – – 506 520 RANA SHAHID AMIN 33100-1137499-1 RANA MUHAMMAD AMIN 445 58 – 503 445 58 – 503 SYED SHAH NAWAZ AHMED 42101-9335201-5 SYED NASEER AHMED 596 87 – 683 596 87 – 683 MUBASHIR JAWAD CHAUDHRY 61101-9486846-9 MUHAMMAD SADIQ ZIA 509 45 – 554 509 45 – 554 MALIK MUHAMMAD SHAHBAZ 35201-9251148-5 MALIK MUHAMMAD NAWAZ 487 63 – 550 487 63 – 550 SAEED AHMED 42501-9143732-5 GHULAM MUSTAFA 569 42 – 611 569 42 – 611 MUHAMMAD TANVEER 41303-8079330-5 ANWAR UL HAQ 520 45 – 565 520 45 – 565 MUHAMMAD AMIN 33301-8963979-5 FAQEER MUHAMMAD 596 49 – 645 596 49 – 645 NADEEM AHMED BUTT 35202-3817231-9 REHMAT ALI 537 49 – 586 537 49 – 586 MUHAMMAD JAMAL 42201-6545062-3 LATIF UR REHMAN 388 296 – 684 388 296 – 684 S. KARACHI . E-6-1 COUNTRY CLUB APARTMENT 33 STREET PHASE NO. HOUSE 180 STREET 3 RABAN COLONY 2. HOUSE A 730/12 F. LAHORE 58 IMRAN KHALIL. HYDERABAD 72 MUHAMMAD AMIN.Annexure . RAWALPINDI 60 NAVEED AHMAD. KARACHI 65 AGHA ZUBAIR. Name & Address of borrower 57 HAFIZ MUHAMMAD AHSAN IQBAL. HOUSE W2/2 UMER STREET REHMAN PARK BHULA CHOWK JOHAR TOWN. 03 NAIMATABAD JHANG ROAD. 2009 (Rupees '000') Name of Individual / partners / directors Name HAFIZ MUHAMMAD AHSAN IQBAL IMRAN KHALIL 42101-4639491-3 KHALIL AHMED 482 70 – 552 482 70 – 35202-6817781-1 SHEIKH MUHAMMAD IQBAL 614 45 – 659 614 45 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Total 659 552 NIB BANK LIMITED NIC No. KARACHI 68 MUBASHIR JAWAD CHAUDHRY. HOUSE NO. HOUSE NO. KARACHI 59 SHEIKH SAJID HUSSAIN. QURESHI CHOWK HASHMANI MOHALLAH. 41. KARACHI 66 RANA SHAHID AMIN. HOUSE NO. 02 SECTOR D II TONSHI 5. HOUSE NO. 316 E GULSHAN RAVI. AREA.

215 G BLOCK MODEL TOWN. HOUSE NO. 27 STREET NO. T 3381 SHAD BAGH COLONY OUTSIDE YAKATOOT.Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. HOUSE R 739 SECTOR 09 NORTH KARACHI. FAISALABAD 85 MUMTAZ AHMED. HOUSE PLOT C 23 1ST FLOOR KHAIBAN-E-BOKHARI PHASE 6 COMMERCIAL STREET 30 LANE NO. KARACHI 82 MAZHAR NAZAR AWAIS. Other Financial Relief MUHAMMAD OWAIS 42101-7500560-9 MUHAMMAD ANWER KHAN 454 66 – 520 454 66 – 520 SHAHID HABIB AHMED 36302-0504749-7 MALIK HUSSAIN AHMED 454 66 – 520 454 66 – 520 SYED SOHAIL ASGHER TANVEER NABI 35202-2498762-5 GHULAM NABI 484 60 – 544 35202-8772369-9 HAJI ASGHER ALI SYED 477 59 – 536 477 484 59 60 – – 536 544 RAJA HUMAYUN IQBAL 37405-2879955-5 AURANGZEB 463 68 – 531 463 68 – 531 MUHAMMAD NASIR 42201-0369476-3 MUHAMMAD YOUSUF 454 56 – 510 454 56 – 510 MAZHAR NAZAR AWAIS 34601-2212046-5 NAZAR MUHAMMAD GONDAL 495 37 – 532 495 37 – 532 MUHAMMAD QASIM 35201-5492340-3 ABDUL RAZZAQ 581 46 – 627 581 46 – 627 MUHAMMAD JAVED 33100-0964491-3 MUHAMMAD ASHRAF 626 51 – 677 626 51 – 677 MUMTAZ AHMED 35301-8071922-1 MANZOOR HUSSAIN 501 42 – 543 501 42 – 543 HABIB QURESHI 42501-9945379-7 MUHAMMAD AQIL QURESHI 545 40 – 585 545 40 – 585 MUHAMMAD SHAHID 36302-6951108-7 MUHAMMAD RAMZAN 533 49 – 582 533 49 – 582 ABDUL RAUF 42201-3672290-9 ABDUL QAYUM 454 66 – 520 454 66 – 520 MUHAMMAD ABDUL NASIR 17301-1641644-1 MUHAMMAD SHAFIQ 474 65 – 539 474 65 – 539 CHOUDRY UMER RIASAT 42201-0597206-1 CHUDARY RIYAST ALI 490 82 – 572 490 82 – 572 MALIK TARIQ NADEEM 35202-9737183-7 MALIK SHAH DIN 695 116 – 811 695 116 – 811 SALMAN 42301-3048805-9 AURANGZAIB 474 74 – 548 474 74 – 548 S. STREET NO. HOUSE NO. 1 SHAH TOWN RAIWIND ROAD THOKAR NIAZ BAIG. 15 RASHEED STREET SAADI PARK MOZANG 5. M II-E 137 SHAN AZARBAD HOUSE STREET NO. LAHORE 84 MUHAMMAD JAVED. 2009 (Rupees '000') Name of Individual / partners / directors Name ABDUL KARIM 42301-1769483-5 GOHAR REHMAN 444 65 – 509 444 65 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Total 509 Annexure . 2 MIO COLONY MASOOM SHAH ROAD. Name & Address of borrower 75 ABDUL KARIM. HOUSE NO. 318 AI TOWN SHIP.No.O AYUB RESEARCH. 2 GULSHAN-E-IQBAL 34. HOUSE NO. 02 MOHALLAH JANAZ CHAH MAIN BAZAR HARBANS PURA 5.1 ANNUAL REPORT 2009 NIC No. 5 8 75 SHAH FAISAL COLONY. FLAT NO. LAHORE 79 TANVEER NABI. 07 STREET NO. KARACHI 77 SHAHID HABIB AHMED. HOUSE 49 Z 5A C B 100 AL SANOBER SHER ZAMAN COLONY LALAZAR. 7. KARACHI 89 MUHAMMAD ABDUL NASIR. KARACHI 86 HABIB QURESHI. 25-A BLOCK NO. LAHORE 83 MUHAMMAD QASIM. 3 DHA 34. HOUSE NO 2365/1 HASSAN PURA CHOWK SHAH ABBAS VEHARI ROAD. 593 PIB COLONY. HOUSE NO. HOUSE NO. RAWALPINDI 81 MUHAMMAD NASIR. KARACHI 175 . KARACHI 76 MUHAMMAD OWAIS. LAHORE 80 RAJA HUMAYUN IQBAL. STREET NO. KARACHI NIB BANK LIMITED 91 MALIK TARIQ NADEEM. HOUSE NO. KARACHI 87 MUHAMMAD SHAHID. D2-26 SAOODABAD MALIR. 3 FIRST FLOOR HASSAN APARTMENT MISHALMALI ROAD. 39 MOHAMMADI ROAD SHERSHAH 34. LAHORE 92 SALMAN. PESHAWAR 90 CHOUDRY UMER RIASAT. HOUSE NO. 139-A LIAQAT TOWN P. MULTAN 78 SYED SOHAIL ASGHER. HOUSE NO. HOUSE NO. MULTAN 88 ABDUL RAUF.

HOUSE NO. HOUSE NO. 11 TARIQBAD. SADAAT COLONY SHAH FAISAL COLONY. 7-B GULISTAN COLONY. KARACHI 103 SHAAFI MEHMOOD. KARACHI 107 MUHAMMAD UMER FAROOQ. HOUSE NO. 33 STREET NO 6 BLOCK Y NEW MULTAN COLONY. 411 STREET NO. HOUSE NO. HOUSE 494 A/H STREET 8 SHAHDAB COLONY SURAJ MIANI ROAD.S. KARACHI 97 NAUSHAD ALAM. FAISALABAD 108 AHSAN UL HAQ. 159-V BLOCK 6 P. 73 . RANA STREET CHUNGI NO. HOUSE E-256 STREET 3-G PIR COLONY WALTON ROAD CANTT. 62-E/1 STREET NO. LAHORE 105 MUHAMMAD KHALID. E 27/13 A STREET NO..E. LAHORE . HOUSE NO. P 46 STREET 5 MOHALLAH ASLAM GUNJ TEZAB MILL ROAD 36. MULTAN 102 ZEESHAN AKRAM. HOUSE 11 B UPPER PORTION MAIN DOUBLE ROAD F 11/2.Annexure . LAHORE 104 TANVEER ALI. FAISALABAD ANNUAL REPORT 2009 109 USMAN MAHMOOD. MULTAN 101 MUHAMMAD TAYYAB. RAWALPINDI 95 FAYYAZ AHMED ABBASI.No. MULTAN 106 MUHAMMAD IQBAL.C. ISLAMABAD 96 MOHAMMAD RAFIQ. LAHORE 94 RAJA ZAFFAR MEHMOOD. 2009 (Rupees '000') Name of Individual / partners / directors Name SHAH DIN BHATTI 35201-0248305-5 MERAJ DIN 740 124 – 864 740 124 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Total 864 NIB BANK LIMITED NIC No. PLOT SC 20 FLAT 14 AL FAZAL SQUARE BLOCK H NORTH NAZIMABAD 34. 6 BOSAN ROAD GULGUSHT COLONY.2 A BLOCK MODEL TOWN. Principal written off Interest/ Mark-up written off Other Financial Relief RAJA ZAFFAR MEHMOOD 37405-5442968-3 RAJA ABDUL JABBAR 533 66 – 599 533 66 – 599 FAYYAZ AHMED ABBASI 61101-8210927-3 HAJI MUHAMAD RIAZ 531 66 – 597 531 66 – 597 MOHAMMAD RAFIQ 42201-9133183-9 SHAIKH ALLAH DITA 449 65 – 514 449 65 – 514 NAUSHAD ALAM 42101-6812966-5 ABDUL REHMAN 465 80 – 545 465 80 – 545 MIAN MUHAMMAD AKRAM 35201-7364779-3 AHMED ALI 591 46 – 637 591 46 – 637 IMRAN ALI 42201-0456113-7 SYED NOOR MOHAMMAD 757 71 – 828 757 71 – 828 GUL ZAMAN KHAN 36302-9820738-7 MUHAMMAD NIAZ KHAN 519 48 – 567 519 48 – 567 MUHAMMAD TAYYAB 36302-8580570-7 MUHAMMAD ASHRAF 641 53 – 694 641 53 – 694 ZEESHAN AKRAM 42101-2554607-1 MOHAMMAD AKRAM 747 63 – 810 747 63 – 810 SHAAFI MEHMOOD 35202-9426847-1 ABDUL RUB SAJID 688 60 – 748 688 60 – 748 TANVEER ALI 35201-1597465-7 ANAYAT ALI 697 64 – 761 697 64 – 761 MUHAMMAD KHALID 36603-6285593-5 HAKIM ALI 550 51 – 601 550 51 – 601 MUHAMMAD IQBAL 42301-9722274-3 MUHAMMAD MUSTAQEEM 500 62 – 562 500 62 – 562 MUHAMMAD UMER FAROOQ 33100-5060935-3 CHUHDARY MUHAMMAD IBRAHIM 454 66 – 520 454 66 – 520 AHSAN UL HAQ 33100-1553552-3 BASHIR AHMAD 577 71 – 648 577 71 – 648 USMAN MAHMOOD 35202-2337773-9 MAHMOOD AHMED 497 83 – 580 497 83 – 580 S. HOUSE NO. 8 MOHALLA GHOSIA COLONY WALTON ROAD CANTT 5. 155 B FAISAL TOWN. Name & Address of borrower 93 SHAH DIN BHATTI. LAHORE 99 IMRAN ALI. HOUSE NO. H-467. 3 STREET 34 AKRAM PARK DHOBI GHAT BAGHBAN PURA.1 176 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. HOUSE NO. KARACHI 98 MIAN MUHAMMAD AKRAM. HOUSE NO. KARACHI 100 GUL ZAMAN KHAN. R-544 SECTOR 14-A SHADMAN TOWN NORTH KARACHI. FLAT 5 PLOT 9/9 STREET 3 DEHLI COLONY 3.H.

ISLAMABAD 115 MALIK ABDUL GAFAAR. FLAT NO. MULTAN 125 MOHAMMAD SABIR.482 2ND FLOOR OPP MOHAMMADI GENERAL STORE WALI GALI MEHMOODABAD NO. J-28. LAHORE 121 KHALID MEHMOOD YAZDANI. KARACHI 124 TARIQ ASHFAQ RAO. HOUSE NO. KARACHI 118 TAHA BIN ABU TALHA.291 216 – 1. 912-D MOHALLAH SUTTER MANDI ANDROON LOHARI GATE. M-C 1441 AZEEM PORA GREENTOWN. P-149-A SCHEME NO. 20 GHOUSIA COLONY WALTON ROAD. HOUSE NO. 2. HOUSE NO.239 832 407 – 1. MULTAN 122 MUHAMMAD SAEED. FAISALABAD 114 ZAFAR SHAH. 2 MAIN BAZAR SADDIQUE COLONY RAVI ROAD TIMBER MARKET. 3 GAZAFI ROAD MALIK PARK 5. NO. HOUSE NO. 1 4TH FLOOR THE MALL PLAZA SADDAR NEAR GPO. 6 NIZAM ABAD KOT KHAWAJA SAEED 5. HOUSE 410/W 7-H GULLI BUNJARAN WALI I/S PAK GATE. 14. 255 STREET NO. FLAT NO. PESHARWARIAN STREET HOUSE NO. HOUSE 7 STREET 8 QURESHI MUHALLAH MUZANG.507 MUHAMMAD ARIF 35202-2585511-9 CHUDHARY AHMAD DIN 676 113 – 789 676 113 – 789 S. KARACHI 119 WASEEM AHMED. HOUSE E . LAHORE 116 ABDUL GHAFFAR. P 738 STREET 2 MUGHAL PURA 1 CHOWK JAMILABAD SHEIKHUPRA ROAD. 212-111 DIJKOT ROAD SIR SYED TOWN. ST. LAHORE 177 . BILAL AHMAD KHOKHAR 35202-1065191-1 ZAMEER AHMAD 832 407 – 1. LAHORE 113 MUHAMMAD NADEEM SABIR. 2009 (Rupees '000') Name of Individual / partners / directors Name ASGHAR BAIG 35202-5324352-3 AKRAM BAIG 715 116 – 831 715 116 – Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest / Mark-up written off Other Financial Relief Total 831 Annexure .Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.No. CHA JAMUN WALA NEW SAMAN ABAD.1 ANNUAL REPORT 2009 NIC No. LAHORE 112 DAVID WILLIAM MOURE. LAHORE 111 BILAL AHMAD KHOKHAR. HOUSE NO. SCHEME 33 GULZAR-E-HIJRI 34. HOUSE NO. LAHORE 120 REHMAN WAHEED. 1/40 VILAYATABAD MANGOPIR ROAD. 2 STREET 1 ALI ST.239 DAVID WILLIAM MOURE 35202-2429078-3 TOMS WILLIAM 460 49 – 509 460 49 – 509 MUHAMMAD NADEEM SABIR 33100-2533425-1 SABIR ALI 742 68 – 810 742 68 – 810 ZAFAR SHAH 11101-8863970-3 GULL WALI SHAH 554 49 – 603 554 49 – 603 MALIK ABDUL GAFAAR 35202-6965761-5 MALIK MUHAMMAD ALI 545 40 – 585 545 40 – 585 ABDUL GHAFFAR 42501-7833716-3 NOOR MUHAMMAD SHEIKH 660 61 – 721 660 61 – 721 KHURRAM BHATTI 42301-8849740-3 YAQOOB BHATTI 526 49 – 575 526 49 – 575 TAHA BIN ABU TALHA 42201-0795202-9 ABU TALHA 607 49 – 656 607 49 – 656 WASEEM AHMED 35202-8395421-9 MUSHTAQ AHMED 552 48 – 600 552 48 – 600 REHMAN WAHEED 35202-2767399-5 MUHAMMAD WAHEED 509 37 – 546 509 37 – 546 KHALID MEHMOOD YAZDANI 36302-0703135-5 ZAFAR ALI ASIM 454 66 – 520 454 66 – 520 MUHAMMAD SAEED 33100-2925945-7 ABDUL RAUF 449 65 – 514 449 65 – 514 SYED MURTAZA ABBAS 45203-3879063-1 SYED NAYAAB HUSSAIN 454 66 – 520 454 66 – 520 TARIQ ASHFAQ RAO 36302-3330524-3 RAO ASHFAQ ALI KHAN 673 98 – 771 673 98 – 771 MOHAMMAD SABIR 42401-4649747-1 EIDOO MASTER 1.291 216 – 1. 201 FANCY HEIGHTS BLOCK B. BHAYANI HEIGHTS BLOCK 4-A GULSHAN-E-IQBAL. C . KARACHI NIB BANK LIMITED 126 MUHAMMAD ARIF. 2911 STREET NO.26. FAISALABAD 123 SYED MURTAZA ABBAS. Name & Address of borrower 110 ASGHAR BAIG. FLAT NO.507 1. KARACHI 117 KHURRAM BHATTI. HOUSE 17 E/2 OFFICERS COLONY.

073 MUHAMMAD LAIQUE 42201-5195322-7 MUHAMMAD AHMED 645 108 – 753 645 108 – 753 127 AZHAR FAREED MUGHAL. 161/C COMMERCIAL AREA P.073 936 137 – 1. HOUSE NO. AREA ARCADE MADINA BUILDING.145 RAJA KHALID ZAMEER KHAN FOZIA KAUSAR ABID HUSSAIN 35202-6427114-9 ABDUL HAMEED 35202-7406585-0 QASIM MIRAZ DIN 599 587 49 48 – – 648 635 599 587 49 48 – – 648 635 35200-1409576-5 RAJA MUHAMMAD ZAMEER 468 43 – 511 468 43 – 511 MUHAMMAD WAHEED CHAUDHRY 37405-0657463-9 MUHAMMAD IBRAHIM CHAUDHRY 790 66 – 856 790 66 – 856 HASEEB UR REHMAN 35202-7393764-9 ATTA UR REHMAN 498 40 – 538 498 40 – 538 MUHAMMAD FURQAN 36302-9330946-3 ABDUL GABAR 726 61 – 787 726 61 – 787 AMIR WASEEM 36302-8031454-5 GHULAM MURSALEEN 1.144 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. 27 MODEL COLONY MALIR. HOUSE NO. HOUSE NO. FLAT 671.1 178 (Rupees '000') Name of Individual / partners / directors Name AZHAR FAREED MUGHAL 35202-7327444-3 NOOR MUHAMMAD MUGHAL 984 160 – 1.2 JOHAR TOWN. 1.090 RANA MUHAMMAD FAHEEM 36302-0358071-1 RANA MOHAMMAD SALEEM 479 40 – 519 479 40 – 519 TONY ALBERT CHAPPELL 42301-7798203-3 HENRY JAMES CHAPPELL 460 59 – 519 460 59 – 519 MUHAMMAD ZAFAR ULLAH 33100-7318037-7 SHER MUHAMMAD 936 137 – 1.145 1. 2 NADRAABAD BAIDIYAN ROAD CANTT. 34. 2 D BLOCK U NEW MULTAN 13. Name & Address of borrower NIC No. MULTAN 141 AMIR WASEEM.143 980 163 – 1. FAISALABAD ANNUAL REPORT 2009 145 MUHAMMAD LAIQUE. KARACHI . SHAH FAREED CHOWK. KARACHI 130 MUHAMMAD SHAKEEL. 945-E SIDDIQUI STREET STREET 2 NADRA ABAD COLONY BEDIAN ROAD CANTT. STREET NO.E. MULTAN 143 TONY ALBERT CHAPPELL. 2009 Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief S.048 97 – 1. LAHORE 140 MUHAMMAD FURQAN. 7 BLOCK U NEW MULTAN P. HOUSE NO. SS 2B MAIN SUNSET BOULEVARD PHASE 2 DHA. NIB BANK LIMITED SHARIQ PASHA SHAMSI 42101-1179594-3 MOHAMMAD ATIQ SHAMSI 980 163 – 1. P 140 STREET 10 4 AHMED ABAD HASHMAT CHOWK. 8 STREET NO.144 984 160 – 1. 36 STREET / MOHALLAH NO. MULTAN ROAD. HOUSE NO.006 84 – 1. B-29 REHMAN HEIGHTS RANDLE ROAD. LAHORE 138 MUHAMMAD WAHEED CHAUDHRY. LAHORE 133 SYED MUDASIR ALI GOHAR.143 ADNAN KHAN 41304-3544777-9 MUHAMMAD BASHEER 700 117 – 817 700 117 – 817 MUHAMMAD SHAKEEL 42101-0481083-7 MUHAMMAD SIDDIQUE 490 82 – 572 490 82 – 572 IMRAN WAHEED UDDIN SIDDIQUI AURANG ZAIB 35201-7373115-1 MALIK MUHAMMAD YASEEN 557 56 – 613 42301-8890584-9 WAHEED UDDIN SIDDIQUI 444 61 – 505 444 61 – 505 557 56 – 613 SYED MUDASIR ALI GOHAR 35202-9105898-7 SYED SIBTUL HASSAN 596 46 – 642 596 46 – 642 NASEEM SHAH 17301-9804214-9 HASHIM KHAN 1. 3 QADIR ABAD TAREEN ROAD. K 283 K AREA KORANGI NO. E-590.672/3 2ND FLOOR HUSSAINABAD F. HOUSE NO.006 84 – 1. NO. 5 NEAR IQBAL RESTURANT.Annexure .C. MULTAN 142 RANA MUHAMMAD FAHEEM. HOUSE 8 STREET 9 ABDUL ELLAHI ST. A-23 SHEET NO. LAHORE 134 NASEEM SHAH. KARACHI 131 IMRAN WAHEED UDDIN SIDDIQUI. HOUSE NO.S. 529 A TAJ PURA SCHEME LDA. HOUSE 746 L BLOCK JOHAR TOWN. HOUSE NO. HABIB GUNJ.H. LAHORE 135 RAJA KHALID ZAMEER. KARACHI 144 MUHAMMAD ZAFAR ULLAH. LAHORE 137 ABID HUSSAIN.B. KARACHI 132 AURANG ZAIB. 968/9 STREETNO. STREET NO. 883/F. 1 TAAL WALI GALI NEAR DOBI GHAT DARS BAREY MAIN LINK ROAD MUGHAL PURA.No. HOUSE NO. 18-C. LAHORE 128 SHARIQ PASHA SHAMSI.048 97 – 1. 1 C BILAL COLONY SABZAZAR B BLOCK. LAHORE 136 FOZIA KAUSAR. ST.090 1. LAHORE 139 HASEEB UR REHMAN. KARACHI 129 ADNAN KHAN. I/1219 KOOCHA CHABAK SAWARAN RANG MAHAL.

Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2009
(Rupees '000')
Name of Individual / partners / directors Name
MUHAMMAD FAROOQ 42201-7061810-3 ABDUL JABBAR 1,448 241 – 1,689 1,448 241 –

Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Other Financial Relief Total
1,689

Annexure - 1

ANNUAL REPORT 2009
NIC No.
BINYAMEEN 35202-0674578-5 MUHAMMAD SULEMAN 1,161 157 – 1,318 1,161 157 – 1,318 SHAHZAD KHOKHER 37405-4162937-7 JAMES KHOKHER 464 78 – 542 464 78 – 542 NADEEM ABBAS 35202-9730087-1 SHAIKH NIAZ ALI 578 96 – 674 578 96 – 674 MUHAMMAD SALEEM JIWANI 42101-6294028-5 MUHAMMAD HAROON JIWANI 635 106 – 741 635 106 – 741 EJAZ AHMED 42201-0489303-1 MUHAMMAD AZAD 692 94 – 786 692 94 – 786 SYED TAHA HUSSAIN JAFFERY 42101-1372878-5 ALI ATHAR HUSSAIN JAFFERY 561 – – 561 561 – – 561 36302-0458568-3 36302-3799833-7 36302-9279957-9 36302-7537877-7 36302-3953552-9 36302-0458520-5 36302-9514374-1 35202-2600141-9 35202-2875590-9 35201-1406276-5 35202-8920585-5 33100-0638312-5 KHAWAJA GHULAM DASTGIR KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD ABDULLAH KHAWAJA MUHAMMAD ABDUL REHMAN JAMI KHAWAJA MUHAMMAD HUSSAIN KHAWAJA MUHAMMAD ALI KHAWAJA MUHAMMAD MANSOOR KHAWAJA MUHAMMAD USMAN MR. MABOOD QURESHI MIAN MUHAMMAD AKRAM MIAN IKRAM MAHMOOD MIAN JAWAD AKRAM MUHAMMAD YASIN NAZIR MIRAJ DIN QURESHI MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD AKRAM CHAUDHARY MUHAMMAD NAZIR AHMED KHAWAJA GHULAM DASTGIR KHAWAJA MUHAMMAD ABDULLAH KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD YOUSAF KHAWAJA MUHAMMAD ABDULLAH 4 52,761 – 2,867 754 2,531 758 58,159 4 6,927 – 2,236 754 2,531 758 11,694 KHAWAJA GHULAM DASTGIR 146,960 46,014 – 192,974 26,960 46,014 – 72,974 9,366 601 2,276 12,243 16 601 2,276 2,893 SHAHZAD KOUSER CHEEMA DANISH IMTIAZ CHEEMA HASSAN IFTIKHAR CHEEMA MR. ZAHEER AHMED KHAN MR. MANSOOR AHMED KHAN MR. MASROOR AHMED KHAN AZHARUL HAQ BUTT TASAWARUL HAQ BUTT TANVEER UL HAQ BUTT MIAN MUHAMMAD AKRAM MIAN IKRAM MAHMOOD MIAN JAWAD AKRAM 34603-4526639-7 34603-2458612-5 35201-5950489-5 35201-1330550-3 35201-1355003-5 35201-1355027-9 42201-9205530-1 42301-7788543-5 42301-1608217-7 35202-2875590-9 35201-1406276-5 35202-8920585-5 CH. M.K CHEEMA CH. IMTIAZ AHMED CHEEMA CH. IFTIKHAR CHEEMA KHAN BHADUR BASHIR AHMED KHAN ZAHEER AHMED KHAN ZAHEER AHMED KHAN MUZAFAR DIN BUTT MUZAFAR DIN BUTT MUZAFAR DIN BUTT MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD ISMAIL MIAN MUHAMMAD AKRAM 71,312 10,492 – 81,804 11,311 10,492 – 21,803 69,771 6,947 58,656 135,374 34,886 6,947 58,656 100,489 21,454 5,241 32,797 59,492 8,963 5,241 32,797 47,001 154,000 9,172 – 163,172 29,000 9,172 – 38,172

S.No.

Name & Address of borrower

146

MUHAMMAD FAROOQ, FLAT 606 BLOCK B 6TH FLOOR PLOT 77-78-GH SHAHNAWAZ GARDEN QASIM ROAD GARDEN WEST, KARACHI

147

BINYAMEEN, HOUSE NO. 18 ST. NO. 12 ALMAS COLONY SIDDIQUIA COLONY NOOR ROAD BADAMI BAGH, LAHORE

148

SHAHZAD KHOKHER, HOUSE NO. L-1950 INDUS ROAD NO. 3 LALKURTI, RAWALPINDI

149

NADEEM ABBAS, HOUSE 48 STREET 1 LALAZAR COLONY BAGHT PURA SHAD BAGH, LAHORE

150

MUHAMMAD SALEEM JIWANI, AREEBA APPARTMENT FLAT NO. 101 FIRST FLOOR BLOCK 3-E NAZIMABAD NO. 3, KARACHI

151

EJAZ AHMED, HOUSE 117 C 2ND FLOOR BLOCK 2 P.E.C.H.S., KARACHI

152

SYED TAHA HUSSAIN JAFFERY, FLAT NO. P-001 IQRA COMPLEX GULISTAN-E-JOHAR BLOCK NO. 17 34, KARACHI

153

MEHR DASTGIR SPINNING MILLS LIMITED, SHAHEED YOUNAS DASTIGIR ROAD, MULTAN CANTT., MULTAN

154

ART VISION, 6/D, NASEERUDIN ROAD, LAHORE

155

BALAJ TEXTILE MILLS (PRIVATE) LIMITED ROOM NO. 3, 3RD FLOOR, SHAHEEN ARCADE, NEW GARDEN TOWN, LAHORE

156

MINTHAR MOTORS, MANTHAR METRO, PRTC DEPOT, GHULAM MUHAMMAD ABAD, FAISALABAD & 4-T GENERAL BUS STAND, FAISALABAD

157

RECTO INDUSTRIES (PRIVATE) LTD., DASKA ROAD, SIALKOT

158

SYED BHAIS LIGHTING LIMITED 200, FEROZPUR ROAD, LAHORE

NIB BANK LIMITED

159

MEKRAN FISHERIES (PRIVATE) LTD. B-2/B-4, FISH HARBOUR, P.O. BOX NO. 6272, KARACHI 74000

160

IHSAN YOUSUF TEXTILE MILLS ROOM NO. 3, 3RD FLOOR, SHAHEEN ARCADE, NEW GARDEN TOWN, LAHORE

179

Annexure - 1

180 Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31, 2009
(Rupees '000')
Name of Individual / partners / directors Name
MALIK IMTAIZ AHMED 42301-3653584-5 MALIK MIAN MUHAMMAD 14,079 719 – 14,798 2,579 719 –

Outstanding Liabilities Before Adjustments Father’s / Husband’s Name Principal Total Accrued Mark-up Others Principal written off Interest/ Mark-up written off Total
3,298

NIB BANK LIMITED
NIC No. Other Financial Relief
ABDUL NAJEEB 37405-2356179-7 ABDUL NAQEEB 14,999 1,964 – 16,963 – 1,562 – 1,562 642,636 94,574 97,014 834,224 208,576 93,541 97,014 399,131

S.No.

Name & Address of borrower

161

M. M. MALIK CO., OFF 15-19 MARINE CENTER, BLK 2 CLIFTON, KHI

162

N S TRADERS, 101, BARKAT PLAZA, SADDAR, RAWALPINDI

ANNUAL REPORT 2009

Pattern of Shareholding as at December 31, 2009

Number of Shareholders
1,613 4,120 4,576 11,562 3,112 3,616 631 338 122 72 30 15 17 22 11 7 66 9 4 5 1 3 1 1 1 29,955

Shareholdings Shares held From
1 101 501 1,001 5,001 10,001 50,001 100,001 200,001 300,001 400,001 500,001 600,001 700,001 800,001 900,001 1,000,001 5,000,001 10,000,001 15,000,001 20,000,001 25,000,001 30,000,001 50,000,001 250,000,001

Percentage

To
100 500 1,000 5,000 10,000 50,000 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 50,000,000 250,000,000 3,000,000,000 66,918 1,491,121 4,073,409 33,344,342 24,121,323 84,364,763 47,556,363 47,786,555 30,467,212 25,340,913 13,743,561 8,178,380 11,079,876 16,462,623 9,142,392 6,717,837 129,534,034 62,469,788 50,874,175 82,427,736 24,578,800 84,300,082 35,921,000 213,939,448 2,995,744,425 4,043,727,076 0.00 0.04 0.10 0.82 0.60 2.09 1.18 1.18 0.75 0.63 0.34 0.20 0.27 0.41 0.23 0.17 3.20 1.55 1.26 2.04 0.61 2.08 0.89 5.29 74.08 100.00

ANNUAL REPORT 2009

NIB BANK LIMITED

181

083.548 1.136 14. Development Financial Institutions.40 2 7 3. Non Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds Public Sector Companies & Corporations Executives Foreign Companies Shareholders holding 10% or more {excluding Bugis Investments (Mauritius) Pte Limited} General Public (including local & foreign individual) Others TOTAL 1 16.974 2.00 182 NIB BANK LIMITED ANNUAL REPORT 2009 .905 7. ICP & IDBP/ICP Banks.643.169.083 74.451.35 – – – 29.468.508.39 100.02 0. undertakings and related parties NIT.Categories of Shareholders as at December 31.00 0.084 137.77 0.301 4. 2009 Particulars Number of Shareholders Shares held Percentage Directors.03 36 18 25 8 26 70 112.18 0. and their spouse and minor children Associated Companies.935 0.12 3. Chief Executive Officer.461 301 29.278 826.105.225 41.154.323.076 11.05 6.955 449.043.992.727.69 1.020.607 242.

020. Asif Jooma Khawaja Iqbal Hassan 1 16.955 449.00 0. Investment Corporation of Pakistan IDBP/ICP 1.902 74.472 39.578.312. Development Financial Institutions.00 9 ANNUAL REPORT 2009 NIB BANK LIMITED 183 .083.03 3 Directors.461 301 29.193 13.425 24.154.323.301 4.643. Sng Seow Wah Mr. Mahmudul Huq Bhuiyan Mr.12 3. Modarabas and Mutual Funds General Public (including local & foreign individual) Others Total 79 121. Insurance Companies.35 4 5 6 7 Executives Public Sector Companies and Corporations Foreign Companies Banks.40 1 26 8 70 16.Details of Pattern of Shareholding as at December 31. 2009 Category 1 Categories of Shareholders Associated Companies. M/s. Francis Andrew Rozario Syed Aamir Zahidi Mr.084 137.468. Undertakings and related parties Bugis Investments (Mauritius) Pte Ltd.39 100. Tejpal Singh Hora Mr.083.02 6.800 41. Non-banking Financial Institutions.995. CEO and their spouses and minor children Mr.136 242.744.00 8 29.225 2.076 11. IFIC Bank Limited Number of Shareholders Number of Shares held Percentage 2 1 1 7 2 2 2 1 3.516 100.974 0.041.935 826.278 14.060 3. Trustee Deptt.935 0.508. Chia Yew Hock Wilson Mr.083 2.169.550.043.727.69 2 NIT & ICP National Investment Trust Limited National Bank of Pakistan.

_______________________ and Account No. No person shall act as proxy (except for a Corporation) unless he / she is entitled to be present and vote in his / her own right.W/o _______________________________ of _____________________________________________________________________________ (full address) being a member of NIB Bank Limited and holder of shares as per Registered Folio No. . _____________________________ Name: CNIC No. 2010 at 09:30 a.m. Proxies.NIB Bank Limited Proxy Form I/We ________________________________S/o. Institute of Bankers Pakistan. at Jinnah Auditorium.: Address : NOTE: A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of him / her.: Address : Signature of Member(s) on Rs. Karachi and at any adjournment thereof. the 30th March.D/o. must be complete in all respect and be received at the Registered Office of the Bank not later than 48 hours before the meeting. ____________ do hereby appoint ___________________________________ of ____________________________________________________________________________ (full address) or failing him/her ___________________________________________________ of ____________________________________________________________________________ (full address) as my/our proxy to attend. Witnesses : 1. speak and vote for me/us and on my/our behalf at the Annual General Meeting of NIB Bank Limited scheduled to be held on Tuesday. Moulvi Tamizuddin Khan Road. 5/. _____________________________ Name : CNIC No. As witness my / our hand this _____________ day of _______________ 2010. No.D. in order to be valid.Revenue Stamp 2. ______________ and / or CDC Participant I.

NIB Bank Limited Muhammadi House.com .I Chundrigar Road. Karachi UAN: 111-333-111 www.nibpk. I.

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