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BEGIN WHERE IT BEGINS

ANNUAL REPORT

BEGIN WHERE IT BEGINS

ANNUAL REPORT

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

Management Team Profiles Introduction 04 06 08 14 15 Senior Management and Internal Committees Organizational Structure 18

Statement of Value Added Notice of the 17th Annual General Meeting 46

C O N T
Chairman»s Message Corporate DNA 20 50 Auditor»s Review Report on Compliance with Code of Corporate Governance 22 Corporate Information Board Meeting Attendance Corporate Social Responsibility 53 26 Six Year Financial Summary Statement of Compliance with Code of Corporate Governance 28 54

Faysal Bank Standalone Financials Cash Flow Statement Directors» Report 59 Statement of Changes in Equity Notes to the Financial Statements Annexures 77 Other Information E N T S Auditors» Report to the Members 78 73 Pattern of Shareholding Branch Network 185 196 208 213 Statement of Financial Position 79 74 75 156 Glossary of Terms Form of Proxy Profit and Loss Account Statement of Comprehensive Income Shariah Advisors» Report 2011 184 76 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .

Inspired by the words of our nation»s best. Dr. Let us together then embark upon an ambitious life. Allama Muhammad Iqbal. and begin where any successful journey startsº the self. .INTRODUCTION 04 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Begin where it begins We take great pride in putting together this report. live their lives to the fullest and make it possible for them to achieve whatever they set out to do. we hereby extend our brand theory of «Bank on Ambition» √ From how it begins to where it takes you. It not only showcases our performance for the past year but also presents our Brand»s promise for the years to come. The best a bank can do is empower people to do their best.

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and it is these two factors that allow us to highlight the promise of tomorrow. 06 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Chaiman of the Board Syed Naseem Ahmed . I have full confidence in the fact that we are well on our way to achieving the excellence we seek.Chairman»s Message Assalam o Alaikum The end of 2011 marked the culmination of one year of Faysal Bank s acquisition of RBS Pakistan It was a year full of challenges not only because of the economic environment but also. combined with the hope of our revived approach. This is an exciting time for us as we are rapidly expanding in our quest to become a leader in the banking sector. cross new boundaries and overcome any obstacles we face is underlined by our support system. Security and stability are the two cornerstones of any institution. In addition.3 billion — an outstanding achievement! The Management has demonstrated professionalism in achieving these goals. and more importantly. to become a Bank of choice. We will continue to strive for customer satisfaction and spare no efforts in delighting our customers. and I look forward to the opportunities that lie ahead. Merged loss of the two banks of PKR 789 million was turned into profit of PKR 1. the bank ventured into new specialised markets. It was a rewarding experience to see our strategic intent being fulfilled. because of the need to successfully tackle the issues of merger. We continued to grow during the year with 27 new conventional banking branches in 10 new cities and the addition of 32 Barkat Islamic banking branches. As a result Faysal Bank has set a unique example of turning losses into profits in the very first year of acquisition of RBS Pakistan. placing us amongst the key players in Pakistan s banking industry. Our constant quest to surpass new heights.

Faysal Bank has set a unique example of turning losses into profits in the very first year of acquisition of RBS Pakistan. .

Our Integrity: Our Identity. 08 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Threshold Values Values at the heart of our brand. Our Respect: Our Duty. We provide banking services knowledgeably and skillfully. Within functions. our bank. We uphold our customers rights to demand efficient service. We appreciate and respect our profession and. Professionalism: We are proficient and efficient in all that we do. credibility and character. we aim for excellence and leadership in our chosen markets. Our Team: Our Asset. time-proven principles of uprightness. Together. Teamwork: We function as a team. above all. Integrity: We are recognised by our reliability. Respect: We hold our customers.CORPORATE DNA Our Vision Excellence in all that we do. We believe in ethical. We stand for and abide by honesty. Our Professionalism: Our Competence . truth and transparency. we cooperate. We uphold regulatory obligations. investors and regulators in high esteem. we collaborate. honourable. Between functions.

09 Values that set our brand apart. acceptable ways. Our Compassion: Our Gift. adjust or prepare for new realities. Compassion Our concern for our colleagues.Our Mission Achieve leadership in providing financial services in chosen markets through innovation. in action and in belief. Passion We bring zeal and enthusiasm for banking to work. We act quickly to modify. We are dedicated to a culture of improvement and modernisation. our customers. We are excited to provide customers with the best or the best-suited. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Differentiator Values . Responsiveness We are receptive to the need for change and improvement. For each other. we are a family. Innovation We pioneer novel and more efficient ways to deliver solutions. Our Passion: Our Worth. Our Innovation: Our Strength. To each other. and our country sets us apart. We stand for originality. We are proactive and anticipate our customers needs and wants. our communities. we are a meaningful source of shared humanity. Our Responsiveness: Our Distinguisher. in thought. We go the extra mile in legitimate.

THE AWAKENING . The awakening.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 In a world full of compromise and mediocrity. Where it begins though is always when we move on from the mundane question of «why» on to the more pertinent «why not». therefore. it becomes easy to fall prey to a lifeless living. isn»t always easy to achieve.

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Khan President & CEO . Hussain Director Lt.BOARD OF DIRECTORS Mohamed A. Gen. R. Muhammad Maqbool (Retd) Director Hassan Mohammed Mahmood Hassan Director Naved A.

Syed Naseem Ahmad Chairman Farooq Rahmatullah Director Shahid Ahmad Director Graham Roderick Walker Director .

Muhammad Maqbool (Retd) Chairman President & CEO Director Director Director Director Director Director 14 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Audit Committee (AC) Graham Roderick Walker Hassan Mohammed Mahmood Hassan Lt. Khan Shahid Ahmad Hassan Mohammed Mahmood Hassan Chairman Member Member Member Member . Muhammad Maqbool (Retd) Chairman Member Member Board Risk Management Committee (BRMC) Mohamed A. R. Khan Syed Naseem Ahmad Shahid Ahmad Farooq Rahmatullah Chairman Member Member Member Member Recruitment Nomination and Remuneration Committee (RNRC) Syed Naseem Ahmad Farooq Rahmatullah Naved A.R.Gen.CORPORATE INFORMATION Board of Directors Syed Naseem Ahmad Naved A.Hussain Naved A. Hussain Farooq Rahmatullah Shahid Ahmad Hassan Mohammed Mahmood Hassan Lt.Gen. Khan Graham Roderick Walker Mohamed A.

Muhammad Maqbool (Retd) Leave of Absence FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .BOARD MEETING ATTENDANCE 15 ATTENDED BY / MEETING DATE 26/02/11 29/03/11 19/04/11 18 & 19/07/11 25/10/11 Syed Naseem Ahmad Naved A. Walker Mohamed A. Hussain Shahid Ahmad Hassan Mohammed Mahmood Hassan Lt. R. Khan Farooq Rahmatullah Graham R. Gen.

Zafar Baig Head Strategic Development Syed Majid Ali Chief Financial Officer Salman Ahmed Usmani Head Treasury Suhail Khan Chief Risk Officer Yousaf Hussain Head Special Asset Management MANAGEMENT TEAM .

Khan President & CEO Nasir Islam Head Compliance Mehreen Amin Head Human Resources Nauman Ansari Head Corporate & Investment Banking .Aarij Ali Head Retail Banking Naved A.

MANAGEMENT TEAMS PROFILES
Naved A. Khan
President & CEO Naved A. Khan has over 23 years of work experience, with 20 years of broad-based and varied Corporate and Investment banking experience. Before joining Faysal Bank, Naved was associated with ABN AMRO Pakistan as CEO with the primary responsibility of strategic management of the bank s local franchise and its key businesses. He has also been associated in senior management positions with Bank of America, Pakistan. Naved has international work experience with General Electric / RCA (USA) for the company s Pacific Rim operations and holds an MBA from Butler University, School of Business (Indianapolis, USA). He is currently Chairman of ECH Task Force — State Bank of Pakistan, Board Member of Rotary Club of Karachi Metropolitan, Board Member on Export Processing Zones Authority, Board Member at the Virtual University of Pakistan, Chairman Academic Board — IBP, Director Karachi Shipyard and Engineering Works and Board Member of Pakistan Stone Developing Company.

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Aarij Ali
Head Retail Banking Aarij Ali has over 25 years of banking experience in various capacities within Retail, Consumer, Corporate and Operations areas. He has also handled business support projects related to HRD, Technology and Strategy Development. He holds an MBA Degree from IBA (Karachi). Prior to joining Faysal Bank, Aarij has been associated with ANZ Grindlays, MCB Bank and Saudi Pak Commercial Bank.

AMRO Pakistan, she was the Head of Human Resources. She is the Member of the Board of Governors of Pakistan Society for Training & Development.

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

Nasir Islam
Head Compliance Nasir Islam is a qualified Chartered Accountant with over 18 years of multifaceted experience. His first assignment was as Manager Finance in ANZ Grindlays (Pakistan), after which he was posted at the ANZ HO (Melbourne, Australia), as Manager Commercial Banking System (CBS) project. He returned to Pakistan in 1997 as Manager Audit, joined ABN AMRO Pakistan as Audit Manager in 2000 and was appointed as Country Head of Compliance in 2004.

Salman Ahmed Usmani
Head Treasury Salman Ahmed Usmani has extensive experience of over 22 years in both the multinational and local banking sector, with expertise in Treasury and Risk Management, Asset and Liability Management, Strategic Planning, Corporate Restructuring, Strategic Negotiations, Acquisitions and Strategic Alliances and International Operations. Prior to joining Faysal Bank Limited, he was associated with MCB Bank Limited as Global Treasurer and Head Investment Banking Group. His past experience has been with organizations such as ANZ Grindlays, American Express, Bank of America, Mashreq Bank and United Bank Limited.

Yousaf Hussain
Head Special Asset Management Yousaf Hussain was previously Head of Corporate Banking (North) at Faysal Bank. He has been with Faysal Bank since August 2008 and has contributed significantly to our franchise through his active support on various strategic level initiatives and ramping up the Corporate Banking Business in the North region. Overall, Yousaf has 18 years of professional experience, primarily at ABN AMRO Bank within the Corporate/Credit and Transaction Banking functions. His experience also includes senior assignments at Samba Bank, Mashreq Bank, Motorola, Mobilink and Siemens Pakistan. In addition to being an electrical engineer, he has done his Masters in Business Administration from LUMS.

Nauman Ansari
Head Corporate & Investment Banking Nauman Ansari has 15 years of rich Credit, Corporate and Investment Banking experience, having been associated with Standard Chartered Bank (Pakistan), Bank of America (Pakistan), ABN AMRO (in Pakistan, Middle East and Asia Pacific regions), Fortis Bank (Middle East) and Crescent Commercial Bank (Pakistan). Nauman holds a Bachelors of Science degree in Business Studies from the USA.

Mehreen Amin
Head Human Resources Mehreen Amin possesses over 26 years of work experience, in the areas of I.T. and HR. She has been professionally associated in senior positions with leading multinationals such as G.D. Searle UK, Shell Pakistan and Reckitt Benckiser, where she was the HR Regional Director (for the Africa Middle East region). In her last assignment at ABN

Syed Majid Ali
Chief Financial Officer Syed Majid Ali is a Fellow member of the Institute of Chartered Accountants. He has over 18 years of diversified experience, progressively responsible in the Accounts and Finance disciplines of banking with exposure in I.T. and HR activities. He has been associated as CFO with Emirates Bank International and Saudi Pak Commercial Bank, as well as KPMG as Partner.

Banking (Energy & Resources Sector) and Asset Management franchises. He brings with him over 14 years of diversified experience in financial services, both in local and foreign markets. Suhail holds an MBA in Finance from IBA (Karachi) and is a Chartered Financial Analyst (CFA).

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Zafar Baig
Head Strategic Development Zafar Baig had been previously associated with ABN AMRO (Pakistan) and RBS (Pakistan) since 1996, holding the position of CFO. He has diversified experience in activities across all Finance functions, including Asset & Liability Management,Taxation and Management Information, along with extensive exposure in business planning, Merger & Acquisition and Integration activities. Prior to joining the bank in 1996, he was associated with HSBC (Pakistan) and brings over 15 years of experience in banking industry.

Suhail Khan
Chief Risk Officer Prior to joining Faysal Bank, Suhail Khan was responsible for UK Institutional Sales as an Executive Director with Fortis Investments. He started his banking career with ABN AMRO (Pakistan) in 1996 as a Corporate Relationship Manager and then led a team in the Credit Portfolio Management function of the bank. In 2002, he moved to ABN AMRO (UK) where he served as the Global Business Manager for Investment

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

SENIOR MANAGEMENT AND INTERNAL COMMITTEES
Senior Management Naved A. Khan
President & CEO

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Management Committee Naved A. Khan
Chairman

Asset & liability Committee Naved A. Khan
Chairman

Compliance Committee Naved A. Khan
Chairman

Nauman Ansari
FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

Syed Majid Ali
Member & Secretary

Salman A. Usmani
Member & Secretary

Nasir Islam
Member & Secretary

Head of Corporate & Investment Banking

Aarij Ali
Head Retail Banking

Nauman Ansari
Member

Nauman Ansari
Member

Suhail Khan
Member

Salman A. Usmani
Head Treasury & ECM

Aarij Ali
Member

Aarij Ali
Member

Zafar Baig
Member

Yousaf Hussain
Head Special Asset Management

Salman A. Usmani
Member

Syed Majid Ali
Member

Syed Majid Ali
Member

Suhail Khan
Chief Risk Officer

Yousaf Hussain
Member

Zafar Baig
Member

Shahid Salim
Member

Syed Majid Ali
Chief Financial Officer

Suhail Khan
Member

Asad Kerai
Member

Mehreen Amin
Head Human Resources

Mehreen Amin
Member

Suhail Khan
Member

Nasir Islam
Head Compliance

Nasir Islam
Member

Yousaf Hussain
Member

Zafar Baig
Head Strategic Development

Zafar Baig
Member

Fouad Farrukh
Head Islamic Banking

Nasir Islam
Company Secretary & Head Legal (Acting)

Shahid Salim
Head Internal Audit

SENIOR MANAGEMENT AND INTERNAL COMMITTEES
IT Steering Committee Naved A. Khan
Chairman

Investment Committee Naved A. Khan
Chairman

Enterprise Risk Management Committee Naved A. Khan
Chairman

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Muhammad Afzal
Member & Secretary

Syed Majid Ali
Member

Asad Kerai
Member & Secretary

Syed Majid Ali
Member

Nauman Ansari
Member

Suhail Khan
Member

Nasir Islam
Member

Suhail Khan
Member

Nauman Ansari
Member

Aarij Ali
Member

Salman A. Usmani
Member

Aarij Ali
Member

Shahid Salim
Member

Asad Kerai
Member

Salman A. Usmani
Member

Suhail Khan
Member

Syed Majid Ali
Member

Nauman Ansari
Member

Nasir Islam
Member

Zafar Baig
Member

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

ORGANIZATIONAL STRUCTURE 22 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Company Secretary & Legal Board of Directors President & CEO CEO Secretariat Islamic Banking Treasury & ECM “Blue positions” are Country MT positions .

23 Audit Committee FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Internal Audit Human Resources Shariah Advisor Compliance Corporate & Investment Banking Retail Banking Risk Management Financial Control Unit/IT/General Services Special Assets Management Strategic Development/ Centralized Operations .

a successful culmination of their journey is inevitable. AMBITIOUS WILL . A soul set on fire can achieve whatever it sets out to.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Once latent desires are awakened.

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CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility and Business Ethics are priorities for Faysal Bank. We believe in and practice both to the best of our abilities.
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Our Objectives:
• To establish a comprehensive Corporate Social Responsibility Programme, which will be funded by the Waqf Faisal Trust. • To invest efficiently and effectively the amount committed by the Board of Directors towards Flood Relief and Rehabilitation. • To develop and instill a culture of Community Investment at Faysal Bank through active Employee Engagement. • To ensure that NGO and welfare management policies not only exist, but that they are applied to make association with us a pleasant and rewarding experience.

Health
• • • • During the year Faysal Bank donated a total of Rs. 6.3 million towards healthcare, which covered: Donation of a BACTEC Machine for the NICH Children’s Cancer Ward, Jinnah Hospital, Karachi. Setting up of a Primary Healthcare Centre by Child Health & Education Foundation. Sponsorship of 6 athletes for the Special Olympics World Summer Games 2011 in Greece. Donation to Nighaban Welfare Association towards procurement of a Colonoscopy Machine at Civil Hospital, Karachi. Donations of Rs. 400,000 each to The Kidney Centre, SIUT and Dar Ul Sukun. Donation of Rs. 500,000 to Liver Foundation Trust, Faisalabad, towards procurement of a Mobile Health Unit. Donations of Rs. 500,000 each to Marie Adelaide Leprosy Centre, and Layton Rehmatullah Benevolent Trust.

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

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in the flood-affected areas of Mianwali and Khushab. The construction of these schools is underway and classes are expected to commence from April 2012. • Additionally, from the Board of Directors’ fund, 5000 food ration packs worth over Rs. 9 million were distributed in the 2011 flood-affected people in Badin, Tando Muhammad Khan and Tando Allah Yar. • In the Faysal Bank T20 Cup 2011 held in Karachi in October, the Bank announced a flood relief contribution of Rs. 500 for every `4’ and Rs. 1000 for every `6’ scored. The amount of Rs. 389,500 thus collected has been spent in procuring blankets for people in Sind province’s flood-affected areas.

Waqf Budget Allocation:
Percentage of funds allocation is 40%, 40% and 20% under Education, Health and Poverty Alleviation respectively. Summary of the same is as follows: •

Poverty Alleviation Education
• As part of a 5-year commitment for a teaching chair in EMBA Programme in Banking & Finance, Faysal Bank donated Rs. 10 million to the IBA, Karachi. • An amount of Rs. 880,000 was contributed to The Helpcare Society, and to Sargodhian Spirit Trust, Sargodha to support tuition of under-priviledged students. • Rs. 50,000 were donated to All Pakistan Women’s Association for the reconstruction of a school in Sanghar. • A donation of Rs. 500,000 was given to Behbud Association Karachi. • An amount of Rs. 3.36 million has been contributed to The Hunar Foundation to support the vocational training of two batches of 20 students each for a year.

Flood Relief
• From the Board of Directors’ allocated fund of Rs. 50 million for flood relief, Faysal Bank has partnered with The Citizens Foundation through a donation of Rs. 30 million to establish and run two schools

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FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

SIX YEARS FINANCIAL SUMMARY
Rupees in Millions 2011 2010 19,710 13,919 1,659 1,675 9,804 2,202 6,775 3,029 827 1,190 20.0 2009 16,958 11,968 1,286 1,493 7,803 2,192 4,311 3,492 1,301 1,200 2008 13,404 8,455 1,161 1,073 7,260 2,047 3,416 3,844 1,797 1,115 15.0 2007 11,611 7,459 1,058 2,337 7,593 2,079 2,816 4,777 2,698 2,272 25.0 25.0 2006 9,728 6,089 725 1,580 6,391 622 1,899 4,492 3,870 2,817 50.0 -

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FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

OPERATIONAL RESULTS Mark-up / return / interest earned Mark-up / return / interest expensed Fee, commission, brokerage & FX Income Dividend and Capital gains Total income Provisions / Write-off Operating expenses Operating profit/(loss) before tax and provision Profit/(loss) before taxation Profit/(loss) after taxation Dividends Bonus shares BALANCE SHEET Shareholders’ equity Revaluation Reserves Deposits Borrowings from financial institutions Advances - net of provision Investments - net of provision Total assets FINANCIAL RATIOS Capital Adequacy ratio Profit before tax ratio Gross spread ratio (Net mark up income / gross mark-up income) Income / Expense ratio Return on Capital Employed Return on Average Equity (ROE) Return on Average Assets (ROA) CASA to total deposits Weighted Average Cost of Deposit Current Ratio Times Gross Advances / Deposit Ratio (Average) Net Advances / Deposit Ratio (Average) Non-performing loans to Gross advances ratio Specific provision held / Non-performing loans ratio Total assets turnover ratio / Fixed assets turnover ratio (Total assets / Fixed assets) Price Earning ratio Earning per share (EPS) * Net Assets per share Market value per share Market value per share - high Market value per share - low Earning Asset to Total Asset Ratio Dividend Yield Ratio (Cash Dividend) Dividend pay out ratio (Cash Dividend) * Book value per share - excluding surplus/ (deficit) on revaluation of assets Book value per share - excluding surplus on revaluation of fixed assets Book value per share - including surplus/ (deficit) on revaluation of assets Number of employees Number of branches

% %

28,825 19,619 2,624 363 13,277 695 11,103 2,173 1,478 1,280 12.5

17,793 1,420 214,615 39,697 148,162 93,409 292,568 % % % Times % % % % % 0.73 % % % % Times % Rs. Rs. Rs. Rs. Rs. % % % Rs. Rs. Rs. 10.65 5.13 31.94 1.20 1.31 7.43 0.46 54.50 7.04 0.68 77.25 68.76 15.74 65.51 26.96 5.25 1.55 23.31 8.13 15.95 8.07 83.39 21.59 20.98 23.31 3,435 257

16,643 (125) 195,315 34,636 133,707 86,419 267,321 10.31 4.20 29.38 1.45 0.80 8.51 0.53 53.22 6.70 0.51 78.25 70.55 16.34 69.46 30.63 10.75 1.45 22.60 15.59 20.90 12.97 83.28 22.77 22.60 22.60 3,582 226

11,336 1,447 123,665 34,986 91,346 56,531 180,865 11.93 7.67 29.43 1.81 9.00 11.18 0.75 54.51 8.23 0.54 82.58 77.22 10.85 62.45 64.87 12.00 1.46 20.99 17.53 18.75 7.94 90.06 18.61 20.99 20.99 2,042 133

10,136 636 102,777 13,027 83,512 36,153 138,241 10.84 13.41 36.92 2.13 10.57 10.89 0.80 47.68 7.03 0.65 87.69 83.41 8.40 65.14 52.23 8.50 1.35 20.34 11.51 66.70 11.51 89.51 19.14 20.34 20.34 1,929 129

10,345 5,811 102,067 9,996 87,346 31,553 141,277 10.27 23.24 35.75 2.70 11.34 23.33 1.77 43.85 7.00 0.64 94.80 91.69 5.22 67.33 56.17 23.87 2.76 30.50 65.95 80.25 60.00 91.17 3.79 90.48 19.53 30.51 30.51 1,759 105

9,132 4,664 74,414 14,965 74,469 22,525 115,470 11.42 39.78 37.40 3.37 20.43 32.67 2.50 51.54 6.30 0.65 93.73 91.71 4.63 36.89 51.57 17.66 3.43 32.56 60.50 93.20 54.1 88.24 8.26 145.95 21.55 32.56 32.56 1,463 75

* Adjusted for prior years to reflect bonus shares issued during 2011

SIX YEARS FINANCIAL SUMMARY
Rupees in Millions 2011 OTHERS Imports Exports CASH FLOWS Operating activities Investing activities Financing activities Cash & cash equivalents at end of the year MATURITY PROFILE Net assets maturity wise: Upto one month Over one month to three months Over three months to six months Over six months to one year Over one year to two years Over two years to three years Over three years to five years Over five years to ten years Over ten years Total net assets 103,766 69,033 2010 73,116 44,646 2009 66,400 36,173 2008 38,089 50,395 2007 68,171 52,110 2006 70,323 33,815

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5,912 (5,842) (209) 23,011

8,882 2,050 3,004 23,150

17,862 (18,438) (5) 9,214

1,882 (2,669) (1,326) 9,804

7,262 (5,505) (818) 11,380

12 2,908 (1,791) 10,091

(28,640) (3,212) 12,261 29,662 (17,458) (139) 12,261 4,736 9,743 19,214

(77,873) 17,346 8,387 (5,960) 18,886 5,727 22,848 17,006 10,149 16,516

(71,637) (10,549) 29,493 9,557 12,839 10,746 12,931 14,923 4,480 12,783

(41,840) 10,431 3,048 803 12,407 7,316 5,316 6,596 6,695 10,772

(30,936) 2,301 6,981 2,443 17,083 5,235 5,370 3,970 3,710 16,157

(30,385) 4,490 4,499 5,762 7,538 10,747 2,766 3,898 4,482 13,797

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

500 2006 2007 2008 2009 2010 2011 Fund Based Income Fee.323 2007 1.493 2.000 1.145 2.000 5.099 6.058 7.653 2.814 2008 2009 2010 2011 1.659 10.140 10.500 1.963 2. Commission.161 8.000 3.000 8.624 10.075 6.000 1. Brokerage and FX Income Expense Composition Rupees in Million 12.000 5.260 978 2006 1.000 921 2.700 Other Cost Employee Cost .000 12.667 6.535 5.INCOME AND EXPENSE COMPOSITION 30 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Income Composition Rupees in Million 15.500 725 6.000 5.286 1.602 3.051 4.517 1.

STATEMENT OF FINANCIAL POSITION COMPOSITION 31 Assets Liabilities & Equity Shareholder Equity 51% 9% 0% 8% 32% 6% 0% 5% 2% 14% 73% 46% 17% 18% 0% 19% Advances Other assets Lending to Financial Institutions Cash and Bank Balances Investments Deposits & other accounts Borrowing from Financial Institutions Sub-ordinated loans Shareholders’ equity Revaluation Reserve Other Liabilities Share Capital Share Premium Statutory Reserve Reserve arising on amalgamation Unapproprated Profit FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .

ADVANCES ADVANCES Advances Rupees in Million 180.206 165.000 80. Cash Credits and Running Finances Net Investment in Finance Lease Bills Discounted and Purchased Reverse Repo Transactions Local Currency Foreign Currencies .000 140.621 Advances Categorisation 0% 2% 4% 94% Advances by Currency 1% 99% Loans.000 151.000 2006 2007 2008 2009 2010 2011 76.000 40.000 20.000 160.000 100.284 98.000 60.016 88.384 91.483 32 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 120.

SEGMENT INFORMATION 33 Advances Chmical and Pharmaceuticals Ready made garments Financial Electronics and electrical appliances Food and Allied Individuals Agriculture Footwear and leather garments Production and transmission of energy Telecommunication Textile Automobile and transportation equipment Iron and Steel Transportation. Road and Air Content Financial Food and Allied Mining and Quarrying Construction Distribution / Trading Paper and Board Sugar Oil Refining / Marketing Synthetic and Rayon Others FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .

000 74.067 102.000 195.000 102.414 50.615 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 200.665 100.000 214.777 2006 2007 2008 2009 2010 2011 Deposits Categorisation Deposits by currency 5% 23% 45% 91% 9% 27% Local Currency Savings Terms Current and margin accounts Financial Institutions Local Currency .315 150.000 123.DEPOSITS 34 Deposits Rupees in Million 250.

SEGMENT INFORMATION 35 Deposits Chmical and Pharmaceuticals Cement Ready made garments Financial Electronics and electrical appliances Food and Allied Individuals Mining and Quarrying Agriculture Sugar Footwear and leather garments Oil Refining / Marketing Production and transmission of energy Synthetic and Rayon Telecommunication Others Textile Construction Automobile and transportation equipment Distribution / Trading Iron and Steel Paper and Board Transportation. Road and Air FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .

000 267.865 141.067 100.615 195.000 74.665 102.000 2006 2007 2008 2009 2010 2011 Net Advances to Deposits 250.777 91.241 150.000 50.414 87.707 50.346 133.346 83.470 138.162 150.000 292.277 115.321 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 250.000 100.512 102.315 200.000 214.000 180.568 200.000 148.000 2006 2007 2008 2009 2010 2011 Advances Net Deposits .000 123.TOTAL ASSETS AND NET ADVANCES TO DEPOSITS 36 Total Assets 300.469 74.

000 10.153 31.000 0 2006 2006 2008 2009 2010 2011 22.000 60.000 50.531 86.525 56.000 Breakup of Investments 7% 2% 9% 82% Share / Other Units NI(UT) TFCs/Bonds Government Securities FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .419 93.000 90.409 37 40.553 30.INVESTMENTS Investments Rupees in Miilion 100.000 70.000 20.000 250.000 36.

296 5.000 6.132 10.793 16.345 10.643 11.000 5.296 2006 2007 2008 2009 2010 2011 Shareholders 20.000 4.000 2.000 18.000 3.237 4.000 7.336 10.000 14.000 8.000 1.000 - 6.000 6.000 12.000 2.136 9.EQUITY 38 Paidup Capital 9.000 16.000 4.243 8.000 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 8.000 Equity 17.091 5.000 - 2006 2007 2008 2009 2010 2011 .309 7.

EPS AND MATURITY PROFILE Earning Per Share In Rupees 3.35 1.43 39 3.50 2.00 1.50 Maturity Profile Percentage 30 25 25 24 2006 2007 2008 2009 2010 2011 20 16 14 15 11 10 8 5 5 5 13 13 14 13 10 6 4 1 Upto 1 months Over 1 month to 3 months Over 3 months to 6 monts Over 6 monts to 1 year Over 1 year to 2 years Over 2 year to 3 years Over 3 year to 5 years Over 5 year to 10 years Over 10 years 10 9 Assets Liabilities FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .45 1.46 1.50 1.76 2.00 1.00 2.50 3.55 0.

2011 17.2008 Dec .2009 Dec .000 10.59 8.000 11.000 Dec .000 8.000 12.2007 Dec .000 30 6.13 10 20 65.000 2.95 60.2006 Dec .2010 Dec . KSE INDEX (2006-2011) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 16.50 70 60 50 40 KSE Index FBL Price FBL Share Price Movement 2011 vs 2010 25 20 15 10 5 - Jan Feb Mar Apr May Jun Year 2011 Jul Aug Year 2010 Sep Oct Nov Dec .51 4.000 14.53 15.STOCK PRICE 40 FBL PRICE Vs.

41 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .

797 (4) 15 10 (4) (11) 9 16 12 (10) 52 7 (1.082 12.409 148.951 16.865 8.686 93.038 250.928 877 2.208 2.net Other assets 18.net Other liabilities 3.213 3.816 9.188 11.793 1.445 4.414 14 1.483 6.427 509 15.027 102.336 1.516 14.429 5.482 10.664 13.050 10.239 1.030 1.691 6.156 4.883 4.772 5.355 1.803 16.996 102.280 4.924 101.783 1.726 5.797 4.951 125.346 2.156 5.986 123.515 2.777 1.465 34.977 168.512 2.518 1.243 6.296 3.136 636 10.643 (125) 16.790 1.Horizontal Analysis Statement of Financial Position 42 2011 2010 2009 2008 Rupees in Million 2007 2006 2011 vs 2010 2010 vs 2009 2009 vs 2008 2008 vs 2007 Variance % 2007 vs 2006 2006 vs 2005 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets .076 39.447 12.707 8.091 4.840 5.345 5.080 1.647 3.315 4.215 11.295 267.708 7.861 36.595 13.355 19.018 56.828 292.591 2.788 1.264 138.850 5.772 2.697 214.321 8.219 34.538 115.346 2.572 273.525 74.872 3.133 4.642 127.537 13.153 83.236) 16 120 (1) 58 360 87 49 29 20 83 61 47 (109) 29 (5) 169 20 (0) (100) (100) 5 32 19 15 6 16 12 128 19 (36) 30 1 (50) (8) (4) 2 (33) 6 (29) (2) (89) (33) (47) (33) 37 100 (43) 46 17 23 17 25 16 (18) 13 25 17 279 (2) (0) (42) 45 69 6 (3) 15 22 (5) 13 (24) (3) REPRESENTED BY Share capital (inclluding propsed shares to be issued) Reserves Unappropriated profit Surplus on revaluation of assets .000 8 2.531 91.237 3.518 7.728 86.276 7.636 195.965 74.017 10.337 7.470 6 (18) 8 11 24 3 15 9 107 1.959 17.615 4.811 16.242 6.213 8.000 4 2.078 31.469 2.673 13.783 6.120 16.067 1.204 141.419 133.296 3.567 1.025 (100) 53 46 213 292 107 48 (6) (42) 425 56 9 5 100 52 31 30 (76) (60) 15 (4) 5 48 (2) (5) 29 54 40 17 12 43 22 8 41 (57) (8) 19 30 (34) 5 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities .568 17.553 87.608 22.407 9.470 10.420 19.395 11.655 999 6.966 180.162 10.

073 9.814 225 64 11.816 2.190 1.310 5.769 1.284 (6) 33 4.800 6 10 2.206 330 (77) 409 33 695 8.116 3 44 3.612 4.619 9.544 (105) 608 2.53 3.589 16.net (Reversal)/ Provision for consumer loans .201 156 100 426 682 1.796 743 1.817 64 51 (39) (155) 8 (79) (93) (80) (463) (1) 642 2.301 1.047 2.114 282 (48) 192 426 2.700 33 7 31 1.433 3 22 8 31 (106) (46) 26 (28) (28) 10 (1) 11 (112) 80 (33) (5) 16 1.514 2.249 121 330 448 2.141 4.601 6.301 814 1.698 2.Current Prior years Deferred Profit after taxation 393 289 (484) 198 1.958 11.11 3.212 3.459 4.HORIZONTAL ANALYSIS Profit and Loss Account 2011 2010 2009 2008 Rupees in Million Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income (Reversal)/ Provision against non-performing loans and advances .550 33 (2) (2) 28.870 3.796 1.990 1.639 517 105 622 3.966 (27) 252 2.752 5.710 13.870 55 85 64 (119) (185) 87 1 66 63 263 (6) 64 79 79 29 (50) 30 62 (248) 652 43 35 55 (1.799 13.866 33 1.103 1.968 4.404 8.85 7 (12) 8 (51) (19) (8) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .089 3.825 19.157 2.902 11.202 3.340 68 609 4. commission and brokerage income Dividend income Income from dealing in foreign currencies Gain / (Loss) 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 Other charges Total non mark-up / interest expenses Extraordinary / unusual items Profit before taxation 1.152 1.455 4.441 5.311 1.728 6.011) (85) 8 (45) (308) 122 60 (51) (26) (152) (67) (60) (19) (44) (110) (49) 17 (8) Basic/ Diluted earnings per share .45 1.791 1.774 827 827 885 668 400 825 (46) 81 2.133) 106 57 (36) (36) 9 (45) 15 (716) 1.191 2.773 619 851 (256) (58) 1.478 1.221 314 1.581 10.6 1.698 604 1.079 2.644 62 68 6.906 (90) 287 99 2.899 3.053 2.813 5.017 46 41 59 (83) (14) 43 (67) (68) 137 16 16 16 (3) 233 14 1 28 27 42 1 27 (74) (59) 7 (4) 43 2007 2006 2011 vs 2010 2010 vs 2009 2009 vs 2008 2008 vs 2007 Variance% 15 13 19 (14) (240) 194 (2) 40 19 22 14 248 (29) 100 234 (31) 53 84 20 (2.511 19.821) 275 (100) (301) (10) 2007 vs 2006 2006 vs 2005 Taxation .919 5.207 347 (134) (3) 79 2.823 (3.478 1.797 75 207 2.416 1.141 335 519 1.55 1.258 97 61 3.880) 100 1.517 510 21 (33) (33) 23 (2) 160 238 100 (90) 25 (4) 50 100 (70) 48 (30) (30) 4 61 27 (46) 44.280 239 192 (794) (363) 1.Rupees 1.general 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.070 12.949 1.012 7.611 7.272 383 93 577 1.723 (1.

409 148.280 4.355 19.213 8.996 102.840 5.346 2.986 123.429 5.076 39.726 5.465 34.636 195.691 6.136 636 10.445 4.928 877 2.082 12.156 5.414 14 1.482 10.346 2.567 1.215 11.797 1 14 73 2 4 93 7 3 2 1 6 0 7 1 13 73 2 5 94 6 3 3 1 6 (0) 6 1 19 68 1 4 93 7 3 2 1 6 1 7 1 9 74 1 0 2 5 92 8 4 3 1 7 0 8 2 7 72 1 0 2 5 89 11 4 3 1 7 4 11 4 13 64 0 2 5 88 12 4 3 2 8 4 12 REPRESENTED BY Share capital Reserves Unappropriated profit Surplus on revaluation of assets .959 17.850 5.419 133.296 3.337 7.407 9.018 56.027 102.295 267.133 4.427 509 15.516 14.777 1.538 115.861 36.951 125.673 13.788 1.595 13.707 8.655 999 6.977 168.647 3.608 22.239 1.204 141.243 6.728 86.219 34.208 2.276 7.537 13.518 7.038 250.078 31.772 5.553 87.803 16.772 2.697 214.525 74.686 93.030 1.865 8.120 16.951 16643 (125) 16.708 7.872 3.883 4.512 2.828 292.395 11.531 91.VERTICAL ANALYSIS Statement of Financial Position 44 2011 2010 2009 2008 Rupees in Million 2007 2006 2011 2010 2009 2008 Variance % 2007 2006 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets .213 3.642 127.965 74.811 16.162 10.000 8 2.017 10.568 17.615 4.345 5.966 180.664 13.net Other assets 18.355 1.242 6.420 19.591 2.924 101.264 138.518 1.000 4 2.793 1.156 4.790 1.797 4.315 4.515 2.447 12.net Other liabilities 3.153 83.050 10.188 11.783 1.783 6.336 1.470 10.296 3.470 6 2 32 51 4 2 4 100 7 2 32 50 3 2 4 100 5 0 8 31 51 2 1 3 100 6 1 2 26 60 2 2 100 5 3 5 22 62 2 2 100 6 2 4 20 64 2 1 100 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities .469 2.237 3.321 8.067 1.816 9.483 6.091 4.572 273.080 1.

796 1.511 1.012 7.870 3.141 4.710 13.514 2.611 7.053 2.073 9.774 827 827 885 668 400 825 (46) 81 2.601 6.221 314 1.902 1.796 743 1.310 5.404 8.581 10.800 6 10 2.823 (3.201 156 100 426 682 1.919 5.070 12.639 517 105 622 3.202 3.114 282 (48) 192 426 2.990 13.206 19.752 5.Deferred Profit after taxation 393 289 (484) 198 1.698 2.284 (6) 33 4.455 4.797 75 207 2.698 604 1.816 2.Current .441 5.619 9.047 2.966 (27) 252 2.866 33 1.773 619 851 (256) (58) 1.301 1. commission and brokerage income Dividend income Income from dealing in foreign currencies Gain / (Loss) 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 Other charges Total non mark-up / interest expenses Extraordinary / unusual items Profit before taxation 330 (77) 409 33 695 8.103 1.191 2.089 3.207 347 (134) (3) 79 2.958 11.340 68 609 4.212 3.general 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.817 1 1 (2) 1 4 1 1 (4) (2) 6 7 17 (23) 1 7 1 1 3 5 8 2 (0) 2 4 20 4 1 6 11 29 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income 28.478 1.814 225 64 11.116 3 44 3.799 1.VERTICAL ANALYSIS Profit and Loss Account 2011 2010 2009 2008 2007 2006 2011 2010 2009 2008 Variance % 11.906 (90) 287 99 2.728 6.017 100 68 32 1 (0) 1 2 30 100 71 29 10 (0) 1 1 11 18 100 71 29 12 (0) 1 13 17 100 63 37 12 (1) 5 15 22 100 64 36 15 1 2 18 18 100 63 37 5 1 6 31 45 2007 2006 Rupees in Million (Reversal)/ Provision against non-performing loans and advances .152 1.825 19.880) 100 1.190 1.301 814 1.157 2.459 4.net (Reversal)/ Provision for consumer loans .141 335 519 1.612 4.478 1.272 383 93 577 1.791 16.Prior years .311 1.644 62 68 6.249 121 330 448 2.968 4.258 97 61 3.769 1.589 1.416 1.870 6 2 3 (1) (0) 4 14 44 38 1 0 39 5 5 6 2 3 7 0 3 20 39 34 0 0 34 4 4 5 4 2 5 (0) 0 17 33 25 (0) 0 25 8 8 6 9 3 (1) (0) 1 17 39 24 1 0 25 13 13 6 11 3 10 0 0 30 47 24 0 0 24 23 23 6 13 1 3 5 28 59 19 0 20 40 40 Taxation .899 3.949 .544 (105) 608 2.079 2.813 5.280 239 192 (794) (363) 1.

200.061 55 10.574 32.313.974 3.033 21.540 26.885 518.846.902 3 1.682.034 20 3.394 26.741 20 3.426.795 1 (363.802 334.106 0 23.033 % 107 7 2 3 3 122 (22) 100 Rs 000 17. commission and brokerage income Dividend income Income from dealing in foreign currencies Derivative income. Administrative expenses Value Added Distributed as follows: To Employees As remuneration To Government As income tax To Depositors As profit on investments To Finanacial Institutions As profit on borrowings To Society As donations To Shareholders As dividends / bonus Retained in Business As reserves and retained profits 28.773.313.033 1 100 (27.764 850.853) 17.218.436 0 915.140.792 17.182 2010 % 98 6 2 3 11 121 (21) 100 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 5. gain on sale of investments etc.289 60 5.236.275) (2) 14.636 1.182 (0) 100 .018.573 5.674.618 2.182 7 364.833 827.net of provisions Fee.198 618.887.130.076.967 18 75.204 1.520.436 17 197.508.193.140.STATEMENT OF VALUE ADDED 46 2011 Rs 000 Mark-up / return / interest earned .846.

gain on sale of investments etc.164 67.150 23.245 20.962 2010 9.996. commission and brokerage income Income from dealing in foreign currencies Administrative expenses To Employees To Society To Government To Share Holders To Depositors Retained in Business To Financial Insitutions .310.181 Rs 000 Private Sector 2011 141.625 13. Fee.720 13.156.742.598 2010 141.245 11.896.277.009.414.923 161.334.392 1% FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 20% 22% 3% 3% 2% 7% 20% 107% 55% 1% 3% o% Mark-up / return / interest earned -net of provisions Dividend income Derivative income.057.914.211 2011 159.130.973.430 9.453.603.012.150 23.833 262.310.304.441 171.206.903 108.STATEMENT OF VALUE ADDED Public Sector 2011 Advances Investments Placements / Lendings 17.826 270.392 90.560 47 Total 2010 151.133.339 176.579.914.904.702.409 87.525 9.584 87.

BARRIERS BROKEN . The only way to break away from the shackles that hold one back is faith in one»s own self. As much as the universe favours the will of an ambitious heart.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Where we come from often hinders where we are going. everything stands in the way of anything that attempts to challenge the status quo.

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To approve the remuneration paid to the Chairman.0 billion as seed money in the funds of FAML. the Acting Company Secretary of the Bank be and is hereby authorized to take all necessary actions which may deem fit to realize the fractional sum in respective manner.5% interim Bonus shares approved by the Board of Directors for the third quarter ended September 30. Non Executive and Independent Directors of the Bank for attending Board meetings and meetings of the Board Committees as disclosed in note 37 of the Audited Financial Statements of the Bank for the year ended December 31. offer themselves for re-appointment. Chartered Accountants. To receive and adopt Annual Audited Accounts. Statement of Compliance with Code of Corporate Governance of FBL for the year ended December 31. Moulvi Tamizuddin Khan Road. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2. Non Executive and Independent Directors of the Bank for attending Board meetings and meetings of the Board committees for the year ended December 31. To consider and approve FBL s investment of up to PKR 1. 2012 Nasir Islam Acting Company Secretary . 2012 at 10:00 a. 2011 issued to the Shareholders on December 12. investment of FBL up to PKR 1. To consider and approve 12. 2011. 2011 together with the Directors and Auditors Reports thereon. be donated to a Charitable Trust Waqf Faisal . For the purpose of giving effect of the foregoing. Karachi. 4.. the Acting Company Secretary be and is hereby authorized to consolidate each Fractional entitlement and sell it in the stock market and the proceeds of sale (less expenses) upon realization. By the order of the Board Karachi dated: March 6. Institute of Bankers of Pakistan. FURTHER RESOLVED that for the purpose of giving effect to this Special Resolution. an associated company of FBL. A.m.5% Interim Bonus shares by the Bank for the third quarter ended September 30.F. To appoint External Auditors for the ensuing financial year 2012 at a mutually agreed rate of remuneration. To confirm the minutes of the 16th Annual General Meeting held on April 28. deeds and things in the matter.0 billion into certain funds of Faysal Asset Management Limited (FAML) as seed money and pass the following Special Resolutions as required by Section 208 of the Companies Ordinance 1984 with or without modifications:RESOLVED that subject to all regulatory approvals. be and is hereby approved . 8. To approve disposal of fractional shares created out of the issuance of 12. being eligible. 3. 2011. Ferguson & Co. The present Auditors. 2011 now placed for Post Facto approval by the Shareholders. 7.NOTICE OF THE SEVENTEENTH ANNUAL GENERAL MEETING Notice is hereby given that the 17th Annual General Meeting of Faysal Bank Limited ( FBL ) will be held on March 28. 5. be and is hereby approved. 2011 and to pass the following resolution as an ordinary Resolution: Resolved that the remuneration paid to the Chairman. 1) the President & CEO and / or 2) the Acting Company Secretary and / or 3) Chief Financial Officer of the Bank be and are hereby singly or jointly authorized to take all necessary actions and do all acts. Any other business with the permission of the Chair. SPECIAL BUSINESS: 6. at Jinnah Auditorium. 2011 on Post facto basis by passing the following resolutions as ordinary resolutions with or without amendments:- RESOLVED THAT :In the event of any member holding fraction of a share. To transact the following business: 50 ORDINARY BUSINESS: 1.

0 billion is sought from shareholders. I) To consider and approve FBL s Investment of up to PKR 1. FAML. and must be duly stamped. by the close of business on March 20. save that a corporation being a member may appoint as it proxy of officer of such corporation whether a member of the company or not. A member entitled to attend and vote at the Annual General Meeting is entitled to appoint another member as a proxy to attend and vote on his/her behalf. and the CDC Account No. 3. This instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed or a notarially certified copy of the power or authority shall be deposited at the office of M/s. Associated relationship established due to 30% shareholding of FBL in FAML. First Floor. House of Habib Building (Siddiqsons Tower). the benefits of which will flow to FBL in the form of dividends on this investment in funds and also on investment in FAML equity. Noble Computer Services (Pvt. Maximum price at which securities will be acquired Face value FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Members are required to timely notify any change in their address to Bank s Registrar/Share Transfer Agent M/s.0 billion as seed money in certain funds of Faysal Asset Management Limited (FAML) with or without modifications. Karachi-75350. Main Shahrah-e-Faisal. No. 3. Transfer received at the Registrar and Share Transfer Agent of the Bank. Main Shahrah-e-Faisal. benefits and period of investment This seed money investment will enable FAML to launch new funds and grow its business.) Limited. Purpose. 2. The CDC Account Holders and Sub-account Holders. signed and witnessed. Such Account Holders and Sub-Account Holders should also bring/know their respective participation I. 3 Jinnah Co-operative Housing Society.D. 2012. 2012 (both days inclusive). First Floor. 2012 will be treated in time.NOTICE OF THE SEVENTEENTH ANNUAL GENERAL MEETING Notes: 1. 3 Jinnah Co-operative Housing Society.0 Billion 4. 2012 appears herein below: 1. Representative(s) of corporate member(s) should bring usual documents required for such purpose. In case of proxy. For this purpose approval of PKR 1. he/she must enclose an attested copy of his/her CNIC or passport.the Registrar and Share Transfer Agent of the bank not later than 48 hours before the time of holding the meeting. Noble Computer Services (Pvt. Name of the associated company along with criteria on which the associated relationship is established Investment in new funds to be launched by FAML. 4. The Statement of material facts as required under the SRO 27(I)/2012 dated January16. The Share Transfer Books of the Bank shall remain closed from March 21. Karachi-75350 51 Statement of Material Facts under Section 160(1)(b) of the Companies Ordinance 1984 relating to the Special Business referred to in Clause 6 of the Notice above: This statement sets out the material facts concerning the following Special Business to be transacted at the Annual General Meeting of Shareholders of FBL will be held on March 28.) Limited. 2012 to March 28. Maximum amount of investment Investment of up to PKR 1. House of Habib Building (Siddiqsons Tower). 2. whose registration details are available in the Share Book Details Reports shall be required to produce their respective original Computerized National Identity Card (CNIC) or original passport at the time of attending the Annual General Meeting to facilitate identification. FBL from time to time makes investment in funds launched by its associated company.

6. The non-executive/independent directors are interested in the payment of remuneration and the remaining members of the Board have no interest in the matter. sponsors. sponsors.NOTICE OF THE SEVENTEENTH ANNUAL GENERAL MEETING 52 5. be donated to a Charitable trust Waqf Faisal . 2011 The remuneration paid to non executive/independent directors was approved by the Board of Directors in terms of Article 104 of the Articles of Association of the Bank. 2011 on Post facto basis. The remuneration requires approval (which in permissible on post facto basis) of the shareholders in Annual General Meeting in terms of requirements of the Prudential Regulations issued by the State Bank of Pakistan. Any member holding fraction of a share. Fair market value of securities Not applicable 8. 11. the Acting Company Secretary be and is hereby authorized to consolidated each Fractional entitlement and sale in the stock market and the proceeds of sale (less expenses) when realized. Non Executive and Independent Directors of the Bank for attending Board meetings and meetings of the Board committees for the year ended December 31. II) To approve disposal of fractional shares created out of the issuance of 12. Salient features of the agreements(s) if any. . Earning per share of the associated company for the last three years Not applicable 10. majority shareholders or their relatives. Direct or indirect interest of directors.5% Interim Bonus shares by the Bank for the third quarter ended September 30. Source of funds from which securities will be acquired Units will be purchased from FBL s own sources. III) To approve the remuneration paid to the Chairman. entered into with the associated company with regards to the proposed investment Not applicable 12. Break-up value of securities intended to be acquired on the basis of the latest Audited financial statements Not applicable 9. Maximum number of securities to be acquired Dependent upon number of funds launched by FAML. majority shareholders and their relatives in the associated company or the transaction There is no personal interest of the directors. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Number of securities and percentage thereof held before and after the proposed investment Not applicable 7.

Further. 2012 Karachi FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . As part of our audit of the financial statements. Sub-Regulation (xiii a) of Listing Regulation No. The responsibility for compliance with the Code of Corporate Governance is that of the board of directors of the Bank. We are only required and have ensured compliance of the above requirement to the extent of approval of related party transactions by the board of directors and placement of such transactions before the audit committee. 35 of Chapter XI contained in the Listing Regulations issued by the Karachi Stock Exchange. 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. the Lahore Stock Exchange and the Islamabad Stock Exchange where the Bank is listed. Based on our review. in all material respects. with the best practices contained in the Code of Corporate Governance as applicable to the Bank for the year ended December 31.Auditor»s Review Report on Compliance with 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 Faysal Bank Limited ( the Bank ) to comply with Regulation G-1 of the Prudential Regulations for Corporate / Commercial Banking issued by the State Bank of Pakistan. 35 as notified by all the three stock exchanges on which the Bank is listed requires the Bank to place before the board of directors for their consideration and approval. nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect the Bank s compliance. to the extent where such compliance can be objectively verified. Our responsibility is to review. all such transactions are also required to be separately placed before the audit committee. Regulation No. 2011. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm s length prices or not. 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. 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. 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 arms length price recording proper justification for using such alternate pricing mechanism. 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. 53 Chartered Accountants Dated: March 5.

The Board of Directors have met five times in the year 2011. including Faysal Bank Limited. The Bank has complied with all applicable corporate and financial reporting requirements as required by the Code. a Development Financial Institution or a Non Banking Financial Institution or being a member of a stock exchange has been declared as a defaulter by that stock exchange. 9. 4.) for the purpose of establishing a framework of good corporate governance with best practices for the listed companies. 14. The Directors Report for this year has been prepared in compliance with the requirements of Code and fully describes the salient matters required to be disclosed. 5. CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding. Faysal Bank Limited encourages representation of independent Directors and Directors representing minority interests on its Board of Directors as applicable under the Code. The Minutes of the Meetings were recorded and circulated to all concerned. overall corporate strategy and significant policies for the Bank. were circulated before the Meetings. 2. 3. The Board has adopted a vision/mission statement. The Pakistan Institute of Corporate Governance has awarded two of the Board Members Certified Director . A complete record of particulars of significant policies alongwith the dates on which they were approved or amended has been maintained. All powers of the Board have been duly exercised and decisions on material transaction. Written notice of the Board meetings. No casual vacancy occurred in the Bank during the year 2011. The Bank has adopted a Statement of Ethics and Business Practices . 11. along with agenda and working papers. 12. The Directors of Faysal Bank Limited are professionally qualified and experienced persons and are well aware of their duties and responsibilities. 7. All resident Directors of the Bank are registered taxpayers and to the best of our knowledge none of them has defaulted in payment of any loan to a banking company.E. which has been signed by the Directors and Employees of the Bank. 10.P. 8. 54 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE Name of Company: Faysal Bank Limited Year Ended: 31 December 2011 This statement is being presented to comply with the provisions of Code of Corporate Governance issued by Securities and Exchange Commission of Pakistan (S.C. All financial statements of the Bank were duly endorsed by the President & CEO and CFO before approval of the Board. The said Code has also been adopted by SBP and stock exchanges. The Directors have confirmed that none of them is serving as a Director in more than ten listed companies. The Directors. 6. The Meetings of the Board were presided over by the Chairman who is Non-Executive Director. including appointment and determination of remuneration and terms and conditions of employment of President & CEO are approved by the Board and/ or its authorized committees. 13. The Board approves appointment of CFO and Company Secretary while Head of Internal Audit is appointed by Audit Committee including their remuneration and terms and conditions of employment. The Board of Directors of Faysal Bank Limited has adopted and applied the principles contained in the Code of Corporate Governance in the following manner: 1. At present the Board includes 6 Independent/Non-Executive Directors and two Executive Directors (including President & CEO).

The terms of reference of Audit Committee have been framed and approved by the Board and have been advised to the committee for compliance. 2012 Naved A. The Internal Audit resources are being reviewed and enhanced regularly to meet continuous business growth. The Bank s Internal Audit Manual is approved by the Board of Directors. 16. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review programme of the Institute of Chartered Accountants of Pakistan. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 55 17. 19. The staff of Internal Audit Department are suitably qualified and experienced for the purpose and are conversant with the policies and procedures of the Bank and they are involved in the internal audit function on a full time basis. The Board has formed an Audit Committee. The Board has set up an Internal Audit function. that they or any of the partners of the firm. one in every quarter prior to approval of quarterly and final results of the Bank as required by the Code. 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.STATEMENT OF COMPLIANCE WITH THE CODE OF CORPORATE GOVERNANCE 15. 20. Khan President & CEO . 18. 21. all of whom are Independent/non-Executive directors excluding the Chairman of the Committee. 22. their spouses and minor children do not hold shares of Faysal Bank Limited or its associates and 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 Audit Committee members also met with External Auditors of the Bank without CFO and Head of Internal Audit and with Head of Internal Audit and other members of the Internal Audit function as required under the provisions of Code of Corporate Governance. It comprises of three members. We confirm that all other material principles contained in the Code have been complied with. Karachi Dated: February 28. The Audit Committee held five (05) meetings. The related party transactions have been placed before the Audit Committee and approved by the Board of Directors.

a man by virtue of his ambition is capable of moving mountains. PA S S I O N P E R F O R M S . An ambition»s evolution rises above an individual and becomes a collective revolution. the tides favouring and passion at its peak.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 When the heart is set.

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To make matters worse external sources of financing during H1-FY 12 had dried up and on the domestic front a lack of diversified and sustainable financing source shifted the bulk of the incremental financial requirements on to the banking system.5%-2. I am pleased to present the Seventeenth Annual Report of Faysal Bank Limited along with the audited financial statements and the Auditor s Report thereon for the year ended December 31.5% of GDP (PKR 532 billion) and from here on containing the deficit to the annual target of 4. a surplus of USD 8 million during the same period last year) is rather disconcerting. moderation in aggregate demand and improvements in domestic supplies of food items.which subsequently depleted to USD 17. This improved performance was mainly due to. Given the rigidities in our trade account and vulnerabilities in our financial account sustaining this performance in FY 12 was always going to be difficult. As for forward looking measures the external current account deficit was expected to be moderate (emanating from a surplus in FY 11) and there was a high probability of meeting the 12% CPI target set forth by the SBP. If these fiscal issues are not addressed in time.FY 12. The SBP now expects full year FY 12 CPI in the range of 11%-12% which implies an uptick in inflation in H2-FY 12. By the end of 2Q-FY 12 the faster than anticipated deterioration in fiscal and the external current account deficit is again prompting the economic managers to re assess their policy bias.234 billion at the start of FY 12.9% against 13.4% in FY 11 (against an initial estimate of 4%) was too low against an estimated 7% required to absorb new entrants into the work force and a protracted cycle of high interest rates subsequent to joining the IMF program in 2009 had led to the crowding out of private sector credit. This policy bias was prompted by a multiplicity of considerations. 2011 59 On behalf of the Board of Directors.7% during FY 11. The lax fiscal policy and its financing mix are a source of primary concern and the monetary policy is becoming subservient to fiscal considerations. disrupting productive economic activities. The GOP hence borrowed substantially from the SBP by end of H1-FY 12 (PKR 197 billion yoy growth).5% of GDP which is largely contingent upon. The provisional estimate for H1-FY 12 shows a deficit of 2. change in the base year for calculations. 2011.the lowest since 1974. the strong inter-linkages between fiscal vulnerabilities and financial stability may tend to spill over to other sectors. The most heartening economic development of H1-FY 12 has been the sharp deceleration witnessed in CPI which was recorded at 10. but the pace at which the current account deteriorated in first half FY 12 by -1.1% increase in tax collection. The Ministry of Finance on its part displayed strong will to curtail its borrowings from the SBP in 1Q-FY 12 and internalized 391 billion worth of circular debt — a cohesive action aimed towards facilitating private sector credit on one end (by freeing up liquidity for more productive activities) and addressing the issue of energy shortages aimed at freeing up the productive capacity and re-igniting economic growth. The most heartening economic development in FY 11 for Pakistan s economy was improvement in the current account balance which was positive for the first time in six years ($268 million) owing largely to higher cotton prices and a stellar performance in home remittances. the timely realization of coalition support funds. receipt of $800 million outstanding from Etisalat and successful auctioning of 3G licensees. USD 18.7% . .DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31.8% (USD 2.7% of GDP is going to be a herculean task despite a 27. The GOP aims to curtail the full FY 12 current account deficit within 1. These considerations prompted the SBP to aggressively slash the policy rate by a cumulative 200 bps in the first two monetary policy decisions of FY 12. This is attributable mainly to bulky oil payments and a seasonal pause in remittances in the first quarter compounded by a dry up in financial flows which in turn lead to this deficit to be financed largely by drawing down on FX reserves .2% during H1. These developments in turn took their toll on the PKR/USD parity which depreciated by 5. the investment to GDP for FY 11 had hit 13. an anemic GDP growth of 2. Economic Update FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Fiscal Year 2012 started with a significant shift in the policy bias towards jump starting economic growth.154 billion vs.026 billion by the end of 2QFY 12 vs.

Synergies with RBS operations identified at the time of its acquisition were capitalized on in the very first year of its acquisition — something that has never happened in this country. The successful integration during the very first year of acquisition has largely nullified the foremost risk in any M&A transaction particularly against the backdrop of an extremely turbulent external political and economic environment.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Bank s Performance The acquisition of RBS Pakistan franchise has turned out to be an outstanding decision in terms of timing. 1. Your Bank delivered a solid performance during 2011. rising international oil prices. Current year s profit after tax at Rs. The outgoing year proved to be a challenging one. 1. monetization of the fiscal deficit). On the fiscal front. Here a break away from the past policy making is imperative to place Pakistan on a higher and more inclusive growth path. public finances need to be strengthened through revenue mobilization. Disengagement and replacement of the RBS Global back-end technology platform was achieved and Alternative Delivery Channel (ADC) platforms were consolidated and upgraded. 1. against an initial estimate of 4. an increase in administered prices of energy (electricity & gas) and wheat. Key developments during the year are outlined below: .5%. The following major integration related activities were completed during 2011: A comprehensive exercise was conducted whereby policies and procedures were aligned and best practices adopted. 2011 marks the first year in existence of the merged entity after the acquisition of the Royal Bank of Scotland. impact of exchange rate pass through and resurgence in the Q2-FY 12 of GOP borrowings from the SBP (i. Last year the bank booked a one off tax credit due to which profit after tax increased from 827 million to Rs. elimination of untargeted subsidies and restructuring of PSEs. On the other hand the GOP needs to address the issue of energy shortages and implement policies that reduce inflation and protect the external position. 2011 60 The main reasons for this assessment are.e.478 billion was 79% higher than last year. not only on account of external factors but the Integration Agenda post RBS acquisition was a daunting task in itself. synergies and complementarity of businesses (especially retail and commercial banking) and size and scale.5%. Following the acquisition.190 billion. your Bank will deliver outstanding value and results in the coming years. procedures and systems. The HR function conducted in-house training sessions to ensure that all staff are aware and comprehend the revised policies. Going forward key challenges facing Pakistan s economy still emanate from long standing structural issues which have continued to depress growth. The entire products suite was evaluated and aligned ensuring that the products offered cater to the varying needs of our clients. Rest assured.280 billion was 8% higher than last year. The integration agenda continued to remain in focus during the period post RBS acquisition. Profit before tax at Rs. price. with an objective of increasing staff engagement. We are pleased to inform you that your bank has been able to successfully integrate RBS operations and turn RBS losses into profits. awareness and bonding various functions and sports events were held. GDP growth for FY 12 is again expected to be in the vicinity of 3. We are now ideally poised to realize our fullest potential and ambition. We remained committed to ensuring that this acquisition unlocks synergies that translate into superior returns to all our stakeholders.

000 million working capital facility to a major Independent Power Producer s new venture. You bank being an active player in the credit market of the bank provided financing for a number of projects contributing to the economic development of the country.400 million for a sugar mill in order to set-up an 8.Arranger to arrange syndicated financing of PKR 2.000 tpd sugar manufacturing facility. managed to arrange a debt syndicate facility of PKR 11. The debt restructured was PKR 22 billion with close to 70 creditor institutions involved. Incremental finance facility of PKR 6.600 million for setting up a BoPET film manufacturing plant.000 million 5-year Syndicated Long Term Finance Facility for the largest integrated gas company in Pakistan.023 million for Pakistan s first ever wind power project FBL closed a joint mandated as Lead Advisor and Arranger for a PKR 10. 61 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . FBL. Total funding requirement is PKR 10. Extended a PKR 1.000 million to one of the leading oil refinery for meeting working capital requirements. A number of landmark transactions were concluded including a debt restructuring where the bank acted as a Lead advisor. FBL participated in a project finance transaction of PKR 2. 2011 Customer Franchise Corporate and Investment Banking During 2011. FBL extended PKR 1. FBL was underwriter for 11 million shares out of the total offering of 27 million shares. in its capacity as Joint Lead Advisor and Arranger.000 million for a Wind Power Project. FBL was mandated to act as one of the underwriters to the IPO of a food business. The Bank acted as Co. Initiation of relationship through disbursement of PKR 2.000 million to set-up the Wind Farm FBL was mandated to act as Lead Advisor and Arranger for a PKR 2. The rest of the funding is being arranged by multilaterals FBL jointly mandated with other large local banks to arrange financing for a Wind Power Project. originally undertaken to develop and build container handling facilities.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31.500 million permanent Syndicate Working Capital Financing facility to be extended to a specialized farm. the corporate & Investment banking group (CIBG) continued to improve the quality of assets and expand its total trade and fee business. FBL extended a unique structured letter of credit facility of USD 65 million for one of the growing oil marketing companies of Pakistan.000 million working capital facility to one of the largest oil marketing companies of Pakistan.200 million to Pakistan s only integrated power entity against SBLCs from A-rated foreign Banks. These projects included: FBL was mandated by Pakistan s first locally owned container terminal for re-financing of USD 27million loans extended by multi-lateral agencies. FBL has been mandated to act as sole Advisor and Arranger to meet the local-currency funding requirement equivalent to USD 35 million to set-up Pakistan s first dedicated Coal and Clinker Terminal. FBL has been jointly mandated to arrange LCY Financing of up to PKR 3.

The Bank continued aggressively in enhancing its footprint in new cities. Insurance companies. The integration of electronic banking platform of Faysal Bank and RBS enabled the bank to offer its customers consistent and unified e. Islamic Banking Barkat Islamic Banking delivered on its aggressive growth strategy by increasing its foot print across Pakistan from13 branches in 8 cities to 45 branches in 20 cities during 2011. We opened 27 new branches and upgraded a sub branch. the bank has rationalized the overlap of conventional branches by relocating them to other areas while utilizing their current premises for Islamic branches or as a second option choosing new sites. In terms of pre-set goals we achieved some major mile stones in 2011.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. in the process. In our first year as a Primary Dealer we managed to secure 4th ranking. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Treasury During the year Treasury reaped rich rewards of the considerable investment made in infrastructure and business development in the previous year. Faysal Banks ATM network was expanded from 118 to 217 ATM and 12 cash deposit machines were added during the year to take the total to 15. Corporates as well as high net worth individuals. With an enhanced branch network at its disposal. The purpose of the system is to reduce the Turn Around Time for a sales lead to enter processing. in line with our strategy we expanded our footprint to 10 new cities. a stellar feat considering the majority of our peers have been in this business since its inception. 2011 62 Retail Banking Following the acquisition of RBS.banking products and services across all channels. Wealth Management and Business Development Unit. The Bank grew its individual accounts portfolio by more than PKR 16 billion whilst lowering cost of funds through effective rate management initiatives. In addition to alignment of Ex RBS and Barkat Islamic Banking products. planning executing and supervising the sales process for Branch Banking. as well as document all sales activities onto a single system. the bank is concentrating on increasing proportion of individual current and saving accounts in the deposit mix. Siebel Sales Force Automation solution brings Faysal Bank s pre-sales and sales activities onto the Customer Relationship Management platform. Asset Management companies. Pension funds. Siebel Sales Force Automation solution was implemented during the last quarter. FBL is now a dominant price maker in the interbank market and our clients now include. This status was awarded to FBL by the SBP on the basis of our proven record of managing our existing derivative portfolio and conducting fresh transactions. enabling us to provide balance sheet solutions to our ever growing and sophisticated customer base. Having already received the Primary Dealer license in 2010 FBL s product suit is now at par with any Treasury in Pakistan. This enables tracking. the foremost of which was our successful application for the Authorized Derivative Status wherein we are now the only mid-tier bank in this group of six. monitoring. Provident funds. Consumer Finance. Barkat Islamic Banking Auto finance and Export financing products including Islamic Export Refinance was launched for Islamic customers. innovative Islamic products and services were added to product menu during the year. Islamic Banking. This ranking was secured on the back of our secondary market turnover and customer volume. To complement distribution growth. .

Following the acquisition. Bancassurance This year proved to be yet another successful year for Bancassurance business. This is a program designed to recognize top performers from across the bank with incentive for sustainable top performance. Islamic banking. Cash Management developed a web-based Remittance processing and payment system for Home Remittance transactions. a total of four products were launched during the year. policies. Treasury embarked upon a home grown automation process which was implemented in January 10 with the installation of the Smart Treasury System.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. The signing of the agreements with two new partners was a major milestone enabling Bancassurance team to further expand their already established product portfolio. It is a straight-through processing system capturing the complete acquisition and disbursement end of the transaction under one umbrella in the form of this system. Non-Compete bids. This product was developed with a vision to facilitate inward home remittance business through formal banking channels.a more flexible and customer centric insurance and investment product.small ticket insurance solutions. People During the year HR conducted in-house training session in coordination with all segments to ensure that staff is aware of the new products. awareness and bonding various functions and sports events were held for staff. It has also enabled Faysal Bank to become one of the few banks to have an Islamic insurance product in its product range which is a testimony of the commitment towards providing innovative Life and General insurance products to its customers. With the aim to increase insurance penetration and provide customers a one stop solution. Saving Plus . 2011 In order to have the necessary infrastructure for sustainable growth commensurate with our customer centric vision. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Special Assets Management . both in terms of revenue growth and development of new products. This infrastructure upgrade enables us to churn greater volumes with increased efficiency as have done in 2011. Coverage for cash and homes were also made available through the telesales unit. Takaful Saving Plan . The CEO club was launched in June 2011.800 million were taken to income. IPS accounts and a SUKUK/TFC module wherein we have now fully automated the entire banks listed and privately placed corporate bond portfolio. with an objective of increasing engagement. 63 Recovery of Non-Performing Loans of RBS Pakistan was identified as an opportunity at the time of making decision for RBS acquisition.an Islamic insurance product designed to provide a Shariah compliant alternative to our customers. procedures and systems. Cash Management Carrying forward the vision to achieve excellence in our product offer and attaining higher service levels through product innovation. We are pleased to inform you that we have been able to take full benefit of this opportunity and during the first year of the merged entity operations total reversals of over PKR 1. The scope of this system was further enhanced in 2011 to keep up with changing business requirements to incorporate modules for. Cash Withdrawal Insurance and All-Rounder .

A behavioral analysis for volatile funding was conducted to get a factual picture of expected maturities. Operational Risk Management framework was updated to reflect consolidation of ex-RBS operational loss database and re-alignment of country wide operational loss data collection process. Significant milestones were achieved in terms of portfolio migration.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. Credit Risk Management (comprising of Corporate Risk Management. Risk Management FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2011 began with key focus as a merged entity. Liquidity. Retail Risk Management operates on a program lending approach to manage. and Operational risks and Capital Management were revised after a thorough review of the prevalent policy and procedural framework at ex-RBS Pakistan and Faysal Bank with the objective of adopting best of both and industry best practices. It is a recognized worldwide certification program aimed to help lenders learn and develop commercial/corporate lending skills. all report into the Chief Risk Officer (CRO) to monitor. The Risk Management Group (RMG) and its sub units spearheaded the integration process after acquisition of RBS and were instrumental in bringing about a smooth transition and streamlining of Risk Policies and Standard Operating Procedures (SOPs). MIS. a structured approach was adopted to manage Consumer Finance business. End-to-end derivatives system was implemented to measure the risks associated with derivative products. As part of the Bank-wide exercise. well poised to withstand any major market turbulence and macro-economic challenges head on as a bigger and stronger institution. in conformity with the requirements and high quality standards of the merged entity. and settlement and pre-settlement risks for derivatives exposures. policies and procedures for Market. mitigate and approve risk on a portfolio level. It is the foundation step towards making sound credit decisions consistently and efficiently. Commercial Risk Management and Retail SME & Agri. Liquidity Risk Management framework was refined in view of the industry best practices and regulatory requirements. Commercial and Retail SME & Agri. 2011 64 Credit Skills Development Pre Assessment Certification program was rolled out in conjunction with The Institute of Banker s Pakistan (IBP). Market and Credit Risk Limits have been defined to manage interest and exchange rate movement. The Credit Risk Management Framework continues to evolve and address business segment-specific risk through specialized Risk Management functions under the umbrella of Risk Management Group (RMG). Derivatives risk management was expanded to additional measures such as Interest Rate Delta (yield curve risk) and Delta Basis (basis risk). Accordingly. Risk Management involve a customer-based risk assessment under a pre-defined credit approval process. exposures and structural framework etc. Derivative limits are being monitored on real time basis to ensure that risks are within appetite. Risk & Control Self Assessments for all business and support areas were completed in order to manage and monitor material operational risks that exist from day-to-day operations of the Bank. Overall portfolio health has improved considerably with drastic reduction in loss numbers. control and manage Credit risk on an independent as well as integrated basis. Risk Management) and Retail Risk Management. With the induction of specialized Retail Risk Management Unit in RMG. . Individual limits were defined for conventional and Islamic banking which are being monitored to closely scrutinize market conditions. Detailed Product Programs including Risk Policies and SOP Manuals were successfully revamped and revised in accordance to the market scenarios. While Corporate.

During the year the bank focused on optimizing cost synergies and as result significant cost reductions were achieved in the areas of branch rentals. This target was achieved with the specified time without any disruption in business activities. Our focus is to eliminate wastages and manage our operations in the most cost efficient manner. regulatory & other Control reports as well as deliberations of various management / board committees.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. 2011 IT started work on consolidation of Data Centers and Communication Network. revamping of in-house developed MIS set up was a formidable challenge. Future Outlook In 2012 the bank will focus to further develop on the synergies of the merged entities. Islamic branches coverage will be further enhanced and Islamic assets products will be launched. 2011. the bank acquired a cost effective MIS tool by the name of QlikView. Going forward the focus will be on realizing synergies of the merger especially with a view of enhancing revenue and reducing costs. These awards are organized by the Joint Committee of the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMAP) to give honor and recognition to the best presented annual reports in terms of international best practices and local corporate laws. Consumer and Agri segments. This will also enable us to streamline operating processes. 2011. The bank also acquired and implemented an end to end derivative system from SunGard for handling its derivative portfolio. technology and premises maintenance cost and utilities. the MIS development process will become fully automated and all businesses and branches will have access to reliable MIS on a daily basis. The Unit also encompasses the objective of reinforcing the Bank s risk culture through ongoing review of the risk MIS & redressing of compliance. resulting in drop in hardware and network requirements and reducing maintenance costs. In Q4. in consonance with the Board s strategic direction & risk appetite. RBS customers were tagged to the business as per new business structure and a reliable segment and customer wise MIS was developed for monitoring performances and tracking trends. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Financial Perspective Post RBS acquisitions. We will continue to grow our assets with a sharp focus on Commercial. On the technology front. After implementation of this tool in 2012. Revenue will also be enhanced through top class management and recovery of Non-Performing loan portfolio. On the liability side our focus would remain on small tickets core deposits which provide reliable liquidity to the bank. The bank s annual report for 2010 was awarded 4th position in the Best Corporate Reports Award in the financial sector category. The bank s internal MIS set up was aligned with new technology and business acquired from RBS by developing interfaces. Alternate Delivery Chanel (ADC) platforms of the two banks was consolidated and upgraded. optimum utilization of available office space. . the implementation of which is underway. further consolidation will be achieved after migrating to upgraded version of core banking system. audit. As a result the number of data centers has decreased from 27 to 11 which will be further reduced to 3 once the project is completed in 2012. 65 Support Services Acquisition of RBS posed special challenges on IT front. resulting not only in alignment but also in enhancement in the range of services provided to customers. The first challenge was to disengage and replace RBS Global back end system by April 15. In the Q3. 2011 The Risk Policy unit was successfully set up in support of the CRO s holistic risk oversight responsibilities as part of the Risk Management Group (RMG).

5. Both the tournaments generated tremendous public enthusiasm and response. Tando Muhammad Khan and Tando Allah Yar.4 million to Waqf Faysal (Trust) which is a non-profit organization established by the bank. Karachi. Corporate Brand Promotion During the year two major events of the domestic cricket calendar were sponsored by the bank i. while millions followed the games live on TV. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 As part of a 5-year commitment for an academic chair in Executive MBA Programme.e. have gone a long way in building the Faysal Bank brand equity. 9 million were distributed to flood-affected people in Badin. 24. Faysal Bank has partnered with The Citizens Foundation through a donation of Rs. education and poverty alleviation. 2011 66 Corporate Social Responsibility (CSR) From the bank s allocated fund of Rs.000 food ration packs worth over Rs. Faysal Bank T20 tournaments held in Faisalabad and Karachi. and the public goodwill created by offering wholesome entertainment to the masses. Faysal Bank donated Rs. Faisalabad and National Stadium. from this fund. Additionally. Karachi were jam-packed for most of the matches. Radio and Social Media. The construction of these schools is underway and classes are expected to commence from April 2012. engaged in charitable activities in the areas of health. The publicity generated through the promotion of the events on mass and outdoor media. The Iqbal Stadium.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. . 10 million to the Institute of Business Administration. The bank donated an amount of Rs. 30 million to establish and run two schools in the flood-affected areas of Mianwali and Khushab. 50 million for flood relief.

in million 2010 67 Profit before tax Reversal / (charge) of provision for taxation Profit after tax Un-appropriated profit brought forward Amounts recognized directly in equity: Reversal of deferred tax liability Appropriations Transfer capital market reserve to un-appropriated profit Issue of bonus shares – September ’11@12.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31.173 (286) (409) (695) 1.170 390 (1.215 2.55 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Operating profit Provision for non performing advances Provision for diminution in value of investments 2.915) (287) (2.959 1.219) 1. 2011 Financial Highlights 2011 Rs.029 (1.172) 765 3.190 1.280 1.45 Transfer from statutory reserve to un-appropriated profit Un-appropriated Profit carried forward Earning per share – Rupees 900 2.231 3.202) 827 363 1.951 3.405 .231 (916) (256) (1.951 1.5% (’10@20%) Transfer to statutory reserve 3.218) (391) (1.478 (198) 1.

14. Definitions of JCR-VIS for the assigned ratings are reproduced below: AA: High credit quality. 1. Despite challenging economic environment advances grew by Rs. It has successfully turned RBS losses into profit and as a result profit before tax showed a growth of 79% from Rs. 1. 2011: Long-Term Short-Term AA A1+ Stable outlook has been assigned to the ratings by both the rating agencies. 256 million which mainly represents losses from dealing in equity market. from Rs.070 million included loss on sale of securities of Rs. Net margins were up by 59%.5 billion or 11%. On the balance sheet side. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Non markup income of PKR 4. Risk is modest but may vary slightly from time to time because of economic conditions. .e. Credit Rating JCR-VIS Credit Rating Company Limited (JCR) and Pakistan Credit Rating Agency Limited (PACRA) have re-affirmed the following entity ratings as on June 30. 19. your bank continued to grow at a steady pace.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. 267. foreign exchange income by 64% and other income by 87%. your bank s earning per share in 2011 was Rs. A1+: High certainty of timely payment. A significant feature of 2011 performance was reversal / recovery of provisions for non-performing loans of Rs. This capacity is not significantly vulnerable to foreseeable events. It indicates very strong capacity for timely payment of financial commitments.56 billion. Protection factors are strong. This coupled with additional FSV benefit of Rs. RBS acquisition had a very positive impact on all areas of bank s operations evident from the fact that all streams of income showed stellar growth over last year. A1+: Obligations supported by the highest capacity for timely repayment. 827 million in 2010 to Rs. Definitions of PACRA for the assigned rating are reproduced below: AA: Very high credit quality. most of which was in the core individual deposits category. 286 million this year.55. a source of reliable liquidity to the bank. is outstanding and safety is just below risk free Government of Pakistan short-term obligations.32 billion to Rs. Short term liquidity including internal operating factors and/or access to alternative sources of funds.8 billion. 25. commission income by 55%. Consequently.915 million in 2010 to Rs. 1. 292. Deposits also showed an impressive growth of Rs.24 billion i. 2011 68 Your bank has posted an impressive performance in the first year of RBS acquisition. 1. Total assets grew by Rs.478 million in 2011. AA rating denotes a very low expectation of credit risk. 1 billion contributed positively to the profitability of the bank as net charge for NPLs reduced from Rs.3 billion.

2011. i. 366 million respectively as per the unaudited finacial statement. Accounting estimates are based on reasonable and prudent judgment. 781 million and Rs. Summarized key operating and financial data of the last six years is tabulated on the initial pages of this Annual Report. b. Proper books of account of the bank have been maintained. k. There has been no material departure from the best practices of corporate governance as detailed in the listing regulations. 2011 Corporate Governance: i. Appropriate accounting policies have consistently been applied in preparation of the financial statements except for the change as mentioned in note 3. as applicable to banks in Pakistan. There are no doubts about the bank continuing as a going concern. d. The prescribed pattern of shareholding is given as part of this Annual Report. a. The system of internal control is sound in design and has been appropriately implemented and monitored. The value of investment of provident and gratuity funds are Rs. have been followed in preparation of financial statements. is disclosed in the footnote to the pattern of shareholding. if any. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. A prescribed statement by the management along with the auditor s review report thereon forms part of this Annual Report. The Bank has implemented the requirements of the Code of Corporate Governance (the Code) relevant to the year ended December 31. h. The details of Board Meetings held and attended by the directors form part of this Annual Report. Statement under clause xix of the code: 69 ii. j. The financial statement prepared by the management of the bank present fairly the state of affairs and the results of its operations. e. f. g. The movement in the directors shareholding.5 to the financial statements. c. Approved accounting standards.

The individuals responsible for risk review. including the Board Risk Management Committee (BRMC). Country Credit Committee (CCC). Liquidity Risk and Operational Risk. compliance etc. The salient features of the Risk Management Framework include: Clearly defined risk management policies and procedures covering risk identification. The framework emphasizes ongoing review of risk policies and procedures. reporting and control. the bank is actively pursuing additional measures towards strengthening internal Controls through adoption of guidelines issued by the SBP on the subject and the COSO framework. policies and procedures encompassing various functional and administrative areas have been developed and circulated across all pertinent levels of the organization. 2011 70 Statement of Internal Control The Management of Faysal Bank Limited is fully responsible for establishing and maintaining adequate internal controls and procedures. A well constituted Risk organizational structure defining clearly roles and responsibilities of individuals involved in risk taking as well as managing it. Asset & Liability Management Committee (ALCO) & Fraud Risk Management Committee (FRMC). Market Risk. measurement. The bank s Internal Audit function keeps monitoring compliance with these policies and procedures and regularly apprises the management and the Board on the same through Board s Audit Committee. For the evaluation of controls a formal mechanism is in place to ensure continuous review of processes and effective existence of required controls. monitoring. has been authorized by the Board of Directors (BoD) to implement a Risk Management framework across the bank which is built around the principles of Integrated Risk Management for managing Credit Risk. The management of the bank fully recognizes this responsibility and appreciates its value and significance. Further recognizing it to be an ongoing process. in addition to risk management functions for various risk categories. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Risk Management Framework Risk Management Group (RMG) as organized under the Chief Risk Officer (CRO). . The effectiveness of the management information system is paramount to ensure flow of information from operational level to top management and a system to address any exceptions is meticulously observed based on clearly spelt out procedures to address such deviations. These policies are approved by the Board of Directors and procedures are approved by the Senior Management. acceptance. The management feels confident that through adoption of these measures. The Bank. Accordingly. the bank s internal control environment is maintained at a satisfactory level. internal audit. The Board of Directors endorses the above stated management s evaluation of internal controls. are independent from risk taking units. has also setup committees for strategic oversight of risk management activities. financial performance is also regularly reviewed by the Board. Enterprise Risk Management Committee (ERMC). Similarly.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31.

limits for liquid assets. misappropriate property of the Bank or circumvent regulation.limits on country. risk ratings and group & single name exposures. Track variables for changing risk conditions & provide timely reports to senior management. liability diversification. Monitor policy compliance. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Market risk .limits on Market Value Exposure (MVE) and stress testing.built around the concept of event. Generate a healthy critique on Asset Portfolio Quality & Credit Management Process. Maintain contingency plans. credit and liquidity commitments and cash flow mismatches.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. Risk Processes Rigorous Risk processes. under holistic oversight of RMG and subject to periodic review by Internal Audit/ Compliance & facilitation by Fraud Risk Management are used across the Bank to: Develop & update policies and limits for approval by senior management /Board. Prevent and detect fraud incidents & investigate reported operational loss events due to acts intended to defraud. Operational Risk Framework . . portfolio products/segments. 2011 The Risk Management framework is built on the following elements: 71 Comprehensive risk governance Credit and counterparty . laws or bank policy. The Bank s realigned Risk Management Framework has culminated in strengthened Risk Management controls through a renewed focus on overall Portfolio Management including Special Assets Management. effect and cause categorization. Liquidity and funding risk . industry.

Ferguson & Co. 20.1 million) during the year. 1984 in this regard. 13. 2011 72 Holding Company Ithmaar Bank B..19. Accordingly. FMSL declared dividends of Rs. Subsidiary Company FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Faysal Bank has one subsidiary Faysal Management Services (Pvt.42 million). F. 12. an Islamic Retail Bank listed in Bahrain and Kuwait is the holding company of Faysal Bank Limited.99 million (2010: Rs.2 million (2010: Rs.15 million (2010: Rs. Ferguson & Co. Chartered Accountants will retire on the date of next Annual General Meeting. 2012 .42 million). Chartered Accountants. 9.DIRECTORS» REPORT FOR THE YEAR ENDED DECEMBER 31. Acknowledgement I would like to take this opportunity to thank on behalf of the Board and Management of the bank the shareholders for the trust they have reposed in the Bank. Dar Al-Maal Al-Islami Trust is the ultimate parent of the bank.S. I would also like to express sincere appreciation for the employees of the Bank for their dedication and hard work. As per Code of Corporate Governance they are eligible for reappointment.) Limited (FMSL) with 60% holding.C. I am also grateful to the State Bank of Pakistan and Securities and Exchange Commission of Pakistan for their continued support and guidance and the customers for their patronage. On behalf of the Board of Directors President & CEO Karachi Dated: February 28. In 2011 FMSL earned profit before tax of Rs. the Board of Directors endorses the recommendation of the Audit Committee for the appointment of Messrs A. F. whereas profit after tax amounted to Rs.7. as the auditors of the bank for the financial year 2012. During 2010 the board of directors of FMSL has decided to voluntary wind up the company and they have resolved to initiate proceedings under the Companies Ordinance. Messrs A. Auditors The present auditors.

and (d) in our opinion Zakat deductible at source under the Zakat and Ushr Ordinance. Our responsibility is to express an opinion on these financial statements based on our audit. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied except for the change as disclosed in note 7. 2011 and the related profit and loss account. in which are incorporated the un-audited certified returns from the branches except for twenty five branches which have been audited by us and we state that we have obtained all the information and explanations which. which in the case of loans and advances covered more than sixty percent of the total loans and advances of the bank. profit and loss account. statement of comprehensive income. We believe that our audit provides a reasonable basis for our opinion and after due verification. its cash flows and changes in equity for the year then ended. 1980 (XVIII of 1980) was deducted by the bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance. 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. and its true balance of profit. 73 (ii) the expenditure incurred during the year was for the purpose of the bank s business. to the best of our knowledge and belief. in the manner so required and give a true and fair view of the state of the bank s affairs as at December 31. An audit includes examining. and the Companies Ordinance. 1984 (XLVII of 1984). evidence supporting the amounts and disclosures in the financial statements. It is the responsibility of the bank s management to establish and maintain a system of internal control. and give the information required by the Banking Companies Ordinance. 1962 (LVII of 1962). were necessary for the purposes of our audit. and the Companies Ordinance. 2011. cash flow statement and statement of changes in equity together with the notes forming part thereof conform with the approved accounting standards as applicable in Pakistan. cash flow statement and statement of changes in equity together with the notes forming part thereof (herein-after referred to as the financial statements ) for the year then ended. 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. on a test basis. (b) in our opinion: (i) the statement of financial position and profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance. evaluating the overall presentation of the financial statements.6 with which we concur. Chartered Accountants Engagement Partner: Salman Hussain Dated: March 5. 1984 (XLVII of 1984). as well as.AUDITORS» REPORT TO THE MEMBERS We have audited the annexed statement of financial position of Faysal Bank Limited (the bank) as at December 31. 1962 (LVII of 1962). and the Companies Ordinance. 1962 (LVII of 1962). and (iii) the business conducted. proper books of account have been kept by the bank as required by the Companies Ordinance. An audit also includes assessing the accounting policies and significant estimates made by management. and prepare and present the financial statements in conformity with the approved accounting standards and the requirements of the Banking Companies Ordinance. its comprehensive income. we report that: (a) in our opinion. statement of comprehensive income. and the returns referred to above received from the branches have been found adequate for the purposes of our audit. 1984 (XLVII of 1984). 2012 Karachi FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. 1984 (XLVII of 1984). (c) in our opinion and to the best of our information and according to the explanations given to us the statement of financial position.

706.986 214.309.718 93.995 10.828.406 5. PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR .213.118 6.614.427 1.445.net Other liabilities NET ASSETS REPRESENTED BY Share capital Proposed shares to be issued on amalgamation Reserves Unappropriated profit Surplus / (deficit) on revaluation of assets 8 9 10 11 12 13 14 2011 Rupees '000 18.769 8.595.959.085 292.395 13.153 16.419.791 250.635.731 4.667 19.726.017.409.909 86.213.159 2010 17.320. 2011 74 Note ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Fixed assets Deferred tax assets .315.924 5.202 10.591.295.732 19.950.108 4.094 28.108) 16.567.STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31.187 148.642 39.770 CONTINGENCIES AND COMMITMENTS 23 The annexed notes 1 to 47 and Annexures I to IV form an integral part of these financial statements.111 273.131 2.418.688 1.517.849.178 17.159 7.770 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 15 16 17 18 19 20 21 22 8.923 3.843 16.878 (125.826 3.859 34.642.727.803.253 7.517.428.164 267.161.904 195.204 4.075.218.696.037.572.607 5.395.197 11.126 11.549 133.354.net Other assets LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities .243.685.188.354.793.

774.978) (57.664 827.054 827.Current Taxation .361) 409.856 1.920 2.736 (794.919 224.730) 287.net Bad debts written off directly Net mark-up / interest income after provisions Non mark-up / interest income Fee.070.469 11.245 8.967 610.Deferred Profit after taxation Unappropriated profit brought forward Unappropriated profit carried forward Basic earnings per share .460 13.338 7.280.999 64.833 (255.4 11. 2011 Note Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against non-performing loans and advances .581.802 334.483 33.5 10.103.511. 31 31 31 25 26 11.980.813.560 1.379 (89.206.644.3 30 PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .450.354 330.369 12.522 289.Prior years Taxation .764 850.478.3 11.091 392.275) 1.170.478 10.449 19.296 3.012.141.478. commission and brokerage income Dividend income Income from dealing in foreign currencies (Loss) / gain on sale of securities Unrealised (loss) / 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 .170.net Reversal of provision for consumer loans .035 695.339.777 68.190.198 618.55 19.PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31.256 5.885 518.815 6.718 6.088 (77.825.Rupees 32 The annexed notes 1 to 47 and Annexures I to IV form an integral part of these financial statements.124 191.329 1.204 1.7 2011 Rupees '000 28.095 9.795 1.072 61.710.380 1.791.054 239.135) (363.45 2010 75 27 28 29 14.016 (483.140.601.387 1.906.086 4.general Provision for diminution in the value of investments .201.817 67.773.091 1.109 1.618 1.919.589.619.249 4.255 97.824 3.560 4.743) 197.net Other charges Total non mark-up / interest expenses Extraordinary / unusual Items Profit before taxation Taxation .534) 1.231 3.

877) 166.372) Total comprehensive income for the year The annexed notes 1 to 47 and Annexures I to IV form an integral part of these financial statements.701) (381.190.176 (1. PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR .280.571.209 (373. 2011 76 2011 Rupees '000 Profit for the year 1.004 (1.329 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Components of comprehensive income not reflected in equity Deficit on revaluation of available for sale securities Deferred tax asset on revaluation of available for sale securities (512.296 2010 1.292) 907.STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31.737.501) 139.

563 3.050.493 (5.214.045 2.150.785.077 77 33 PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .054.385.005) (70.301) 120.250 131.047.646 (10.204.255 61.217.898 297.534 (262.354) (14.080) 23.743.383 (4. 2011 Note CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation Less: dividend income Adjustments for non-cash and other items: Depreciation Amortisation Workers' Welfare Fund Provision against non-performing loans and advances .067) (139.029 (1.523 (2.169 660.609 97.709) 21.869) (209.088 (77.721.359 645 3.217) 4.CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31.004 13.299.251 16.483 224. (200.957) 4.953 33.841) (583.566.388 1.740.863) 23.030.527 (967.337.267 16.426 23.001 (542.365) 2.911.492.879 1.004.433 330.010.979 9.913.478.447 23.999 57.845.988) (1.054 (334.956) 5.091 (618.069 650.947.net Reversal of provision for consumer loans .638) (120.162) 353.998 311.226 19.087.150.136.517.862.171.906.586.426 2011 Rupees '000 1.198) (8.general Provision for diminution in value of investments Provision for other assets Unrealised loss / (gain) on revaluation of investments classified as held for trading Net profit on disposal of property and equipment Fixed assets written off Charge for defined benefit plan Bad debts written off directly (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 Income tax paid Contribution to gratuity fund Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net investment in available for sale securities Net investment in held to maturity securities Net cash inflow on acquisition Dividend income received Investment in operating fixed assets Proceeds realised on disposal of operating fixed assets Net cash (used in) / generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payments of sub-ordinated loan Dividends paid Net cash (used in) / generated from financing activities (Decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year The annexed notes 1 to 47 and Annexures I to IV form an integral part of these financial statements.327 1.473 (935.361) 409.187 11.246) (18.776) 6.840 2.620) 8.809 (2.920 3.373 701.764) 859.098 3.730) 287.995 608.797) 4.319.003.094.870) 175.218.842.803 70.932 38.881.631 157.035 2.123) (7.456 7.935.379 (89.885) 492.777 (67.442) 2010 827.240 (1.153.372 (2.967) (28.588) (143.

218.1) Transfer from statutory reserve to unappropriated profit Balance as at December 31.076 7.2) Profit after tax for the year ended December 31.131 915.146 23.059 1.198 (1.030.gain amalgamaon bargain tion purchase Revenue Share capital Share premium Statutory reserve Capital market reserve Total Unappropr i-ated profit Total FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 -----------------------------------------------------------------.net of deferred tax (note 21.059) 1.542) (389.(1.131 - 3.183) (389.131 900.056 1.059 - 256.902) (129.280.1) Balance as at December 31.190.299.590 - - 391.190.299.Rupees '000 ----------------------------------------------------------------Balance as at January 1.183 28.076 4.902) - 10.146 (129.000) 3.076) 1.793. 2010 Transfer to reserve for issue of bonus shares Bonus shares issued Transfer to unappropriated profit Proposed shares to be issued on amalgamation Reserve arising on acquisition and amalgamation of non-controlling interest in the RBS Gain on bargain purchase (note 21.253 (28.902 - 28.878 (915.642.959.952 3.2) Profit after tax for the year ended December 31.253) - 915.218.688 10.387.591.253 .183) 3.218.253 1.329 - 1.952 3.280.218.146 7.542 4.296 (256.231 12. PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR .542 28.183 (1. 2011 Transfer to statutory reserve (note 21.090.747) 1.329 (391.243.649 - (900.399 23.747) - - - - - - 256.747) 23.218.122 915.980.514 389.000) 6.000 - 2.299.427 The annexed notes 1 to 47 and Annexures I to IV form an integral part of these financial statements.950. 2011 6.542) - - - - - 3.STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31.118 - - 10.146 - 23.178 17.902 (915.183) 389.094 18. 2010 Shares issued upon amalgamation Transfer to reserve for issue of bonus shares Bonus shares issued Amortisation of intangible asset customer relationship . 2010 Transfer to statutory reserve (note 21.640.299.952 - 391.169.911 1.131 3.309.183 1.902 (915.843 16.296 - 8.218.101.952 - - - 23.031.902) (129.952 (900.354. 2011 78 Proposed shares to be issued on amalgamation Reserve for issue of bonus shares Reserves Capital Nondistributable Reserve capital arising on reserve .

Profit and Loss account of the subsidiary. 1962.9 to these financial statements. BASIS OF PRESENTATION In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. However. 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. the statement of financial position and profit and loss account of islamic banking branches are disclosed in Annexure III to these financial statements. 1962. the requirements of the Companies Ordinance. the SECP has also deferred the applicability of International Financial Reporting Standard (IFRS) 7. 3 3.R. 2008.1 STATUS AND NATURE OF BUSINESS Faysal Bank Limited (the Bank) was incorporated in Pakistan on October 3. is the parent company of the Bank. Dar AlMaal Al-Islami Trust (DMI). In accordance with the directives issued by the SBP. a Bahrain based retail bank. 2010.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan and notified by the Securities and Exchange Commission of Pakistan (SECP). Accordingly. the requirements of these standards have not been considered in the preparation of these financial statements.1 STATEMENT OF COMPLIANCE These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. and Nil sub-branch (2010: 2). 2011 has granted exemption to the Bank from the preparation of consolidated financial statements of the Bank and its subsidiary company namely Faysal Management Services (Private) Limited with effect from June 30. Its shares are listed on Karachi. Lahore and Islamabad Stock Exchanges.S. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 79 The Registered Office of the Bank is located at Faysal House. 411(I)/2008 dated April 28.2 . 2011. The financial results of the Islamic banking branches have been consolidated in these financial statements for reporting purposes only. IFAS notified by the SECP or the directives issued by the SECP and SBP differ with the requirements of IFRS. 1984.2 Based on the financial statements of the Bank for the year ended December 31. nature of auditor's opinion and certain other matters. 1984. The disclosures required by the SECP are given in notes 10. the Banking Companies Ordinance. Karachi. the Pakistan Credit Rating Agency Limited (PACRA) and JCR . holding. IFAS notified by the SECP or the requirements of the said directives issued by the SECP and SBP shall prevail. 1984. Inter branch transactions and balances have been eliminated. 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 utilised and the appropriate portion of mark-up thereon. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board as are notified under the Companies Ordinance. or the directives issued by the SECP and the State Bank of Pakistan (SBP). 1994 as a public limited company under the Companies Ordinance..C. 1984. directly and indirectly through subsidiaries 66. 'Financial Instruments: Recognition and Measurement' and International Accounting Standard (IAS) 40. Further. including 45 Islamic banking branches (2010: 13). 2002 till further instructions. Shahra-e-Faisal.3 2 3.O. ST-02. (ultimate parent of the Bank) is the holding company of Ithmaar Bank B. 'Investment Property' for Banking Companies through BSD Circular Letter No. Banking Companies Ordinance. 1. the State Bank of Pakistan (SBP) has issued various circulars from time to time. 'Financial Instruments: Disclosures' through its notification S. Wherever the requirements of the Companies Ordinance. investments have been classified and valued in accordance with the requirements prescribed by the SBP through various circulars. 1962. the Banking Companies Ordinance. The Bank has a network of 257 branches (2010: 226).94% of the shareholding of the Bank.C. The Bank is engaged in Corporate. The SBP has deferred the applicability of International Accounting Standard (IAS) 39.S. 2011 1 1.VIS Credit Rating Company Limited have determined the Bank's long-term rating as 'AA' and the short term rating as 'A1+'.7 to 10. Commercial and Consumer banking activities. subject to the disclosure of Statement of Financial Position. 1984. Ithmaar Bank B. The Securities and Exchange Commission of Pakistan (SECP) vide letter EMD/233/12/2002-55 dated July 15. the requirements of the Companies Ordinance. The DMI group owns and operates an international network of Islamic banks and Investment and Insurance companies. 10 dated August 26.

the above amendment does not have any impact on the Bank's financial statements. minimum funding requirements and their interaction’. 2011. 'Employee benefits' was amended in June 2011 and is applicable for periods beginning on or after January 1.4 above.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. two statement approach shall be adopted i. 'Revised Forms of Annual Financial Statements'. 2012. and to replace interest 3. this amendment will not have any impact on the Bank's financial statements.e. (a) IAS 1. 2011. 'Operating Segments' is effective for the Bank's accounting period beginning on or after January 1. SBP vide its BSD Circular No. This was not intended when IFRIC 14 was issued. segment information disclosed in these financial statements is based on the requirements laid down by the SBP. The amendments are effective for annual periods beginning on or after January 1. The amendments correct an unintended consequence of IFRIC 14. to immediately recognise all past service costs. The amendments do not address which items are presented in OCI. issued in 2003. effective from the accounting year ended December 31. ‘Related party disclosures’.6 New and amended standards and interpretations that are not yet effective and have not been early adopted The following amendment to existing standards has been published and is mandatory for the Bank's accounting period beginning on or after January 1. There are other new and amended standards and interpretations that are mandatory for the accounting periods beginning on or after January 1. 4 dated February 17. The Bank's current policy and disclosures are in line with the requirements prescribed by SBP as described in note 3. Because of the circumstances described in note 3.4 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 3. The amendments does not have any impact on the Bank's financial statements. the surplus / (deficit) on revaluation of available for sale (AFS) securities only. therefore. the above requirements have been adopted in the preparation of these financial statements. It supersedes IAS 24. 2011 80 3. 2010 has clarified that for the purpose of preparation of financial statements in accordance with International Accounting Standard . The main change resulting from these amendments is a requirement for entities to group items presented in other comprehensive income’ (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (reclassification adjustments). not detailed in these financial statements. 2013. (c) IFRIC 14 (amendment). The Bank has adopted the above amendment with effect from January 1. 2006. The amendment clarifies that an entity will present an analysis of other comprehensive income for each component of equity.5 . Furthermore. However. (b) IAS 19. 2012). ‘Prepayments of a minimum funding requirement’. Without the amendments. The impact on the Bank will be as follows: to eliminate the corridor approach and recognise all actuarial gains and losses in other comprehensive income as they occur. (b) IAS 24 (revised). All banking companies in Pakistan are required to prepare their annual financial statements in line with the format prescribed under BSD Circular No. entities are not permitted to recognise as an asset some voluntary prepayments for minimum funding contributions. Accordingly. (a) IAS 1.4 and accordingly. The revised standard does not have any effect on the Bank's financial statements. 3. ‘Related party disclosures’. 2006. issued in November 2009. The revised standard clarifies and simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities. 'Presentation of financial statements' (effective July 1. 2009. it should continue to be shown separately in the statement of financial position below equity. 07 dated April 20. and the amendments correct this. 'Presentation of financial statements' (effective January 1. Accordingly.1 (Revised). 2011. 2011). 'Presentation of Financial Statements'. the SBP requirements prevail over the requirements specified in IFRS 8. and Balance Sheet shall be renamed as 'Statement of Financial Position'. separate 'Profit and Loss Account' and 'Statement of Comprehensive Income' shall be presented. ‘IAS 19 – The limit on a defined benefit asset. may be included in the 'Statement of Comprehensive Income'. 2011. The management of the Bank believes that as the SBP has defined the segment categorisation in the above mentioned circular. either in the statement of changes in equity or in the notes to the financial statements. interpretations and amendments to published approved accounting standards that are effective in the current year The following revised standards and amendments to existing standards and interpretations have been published and are mandatory for the Bank's accounting period beginning on or after January 1. Changes in accounting policies and disclosures . but are considered not to be relevant or do not have any significant effect on the Bank's operations and are.3 IFRS 8.Standards.

The cost of acquisition is measured as the fair value of assets given. It also requires management to exercise judgments in application of its accounting policies. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 81 4 BASIS OF MEASUREMENT These financial statements have been prepared under the historical cost convention. There are other new and amended standards and interpretations that are mandatory for the Bank's accounting periods beginning on or after January 1. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. if any. The management is currently assessing the full impact of the amendments. equity instruments issued and the liabilities incurred or assumed at the date of acquisition. Acquisition-related costs are expensed as incurred. Goodwill acquired in a business combination is measured. 7 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies applied in the preparation of these financial statements are set out below. 5 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in conformity with approved accounting standards requires management to make judgments.1 Business Combination Business combinations are accounted for by applying the acquisition method. These estimates and assumptions are reviewed on an ongoing basis. if any.2 to these financial statements. If this is less than the fair value of the net assets acquired in the case of a bargain purchase. Goodwill acquired in a business combination is tested for impairment annually or whenever there is an indication of impairment as per the requirements of International Accounting Standard (IAS) 36. The financial statements are presented in Pakistani Rupees. estimates and assumptions that affect the reported amounts of assets and liabilities and income and expenses. at its cost less accumulated impairment losses. 6 FUNCTIONAL AND PRESENTATION CURRENCY Items included in the financial statements are measured using the currency of the primary economic environment in which the Bank operates. 7. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. or in the period of revision and future periods if the revision affects both current and future periods. These policies have been consistently applied to all the years presented unless otherwise specified. Significant accounting estimates and areas where judgments were made by the management in the application of accounting policies that have a significant risk of material adjustment to the carrying amounts of assets and liabilities are disclosed in note 39 to these financial statements. The excess of fair value of consideration transferred over the proportionate share of the NCI in the fair value of the net assets acquired is recognised in equity. However. except that certain fixed assets are carried at revalued amounts and certain investments and derivative contracts have been marked to market and are carried at fair value. Impairment charge in respect of goodwill is recognised in the profit and loss account.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. subsequent to initial recognition. The excess of the consideration transferred over the fair value of the Bank's share of identifiable net assets acquired is recorded as goodwill. the gain on bargain purchase arising on acquisition made in 2010 has been recognised directly in equity as per the directive of the SBP. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period. as more fully described in note 21. 'Impairment of Assets'. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. In addition. which is the Bank's functional and presentation currency. 2012 but are considered not to be relevant or do not have any significant effect on the Bank's operations and are therefore not detailed in these financial statements. . Acquisition of non-controlling interests (NCI) is measured at the proportionate share of the NCI in the fair value of the net assets acquired by the Bank. 2011 cost and expected return on plan assets with a net interest amount that is calculated by applying the discount rate to the net defined liability / asset. the difference is recognised directly in the profit and loss account. obligation in respect of staff retirement benefit is carried at present value.

(b) Purchase of securities under repurchase agreements Securities purchased under agreement to resell (reverse repo) are not recognised in the financial statements as investments and the amount extended to the counter party is included in lending. Investments other than those recognised as held for trading are initially recognised at fair value which includes transaction costs associated with the investments. Investments classified as held to maturity are carried at cost whereas investments in subsidiaries and associates are carried at cost.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. All purchases and sales of investments that require delivery within the time frame established by regulations or market convention are recognised at the trade date. . which are either acquired for the purpose of generating profit from short-term fluctuations in market prices. 7. less a ccumulated impairment losses. other than those. 2011 82 7. other than those classified as held to maturity and investments in subsidiaries and associates. quoted securities. These transactions are accounted for on the settlement date. Unquoted equity securities are valued at the lower of cost and break-up value. if any. are subsequently stated at market values. interest rate movements. (c) Available for sale These are investments. The difference between the purchase and contracted resale price is accrued over the period of the contract and recorded as income. 7. These are recorded as under: (a) Sale of securities under repurchase agreements 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. balances with other banks in current and deposit accounts. in subsidiaries and associates. cash and cash equivalents comprise of cash in hand. Trade date is the date on which the Bank commits to purchase or sell the investment. Break-up value of unquoted equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements.4 Investments The Bank classifies its investments as follows: (a) Held for trading These are securities. if any. national prize bonds. that do not fall under either held for trading or held to maturity categories. (b) Held to maturity These are securities with fixed or determinable payments and maturity that the Bank has a positive intent and ability to hold to maturity. balances with treasury banks. In accordance with the requirements of the State Bank of Pakistan (SBP).3 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Lendings to / borrowings from financial institutions The Bank enters into transactions of repos and reverse repos at contracted rates for a specified period of time. Investments classified as 'held for trading' are initially recognised at fair value and transaction costs associated with the transactions are expensed in the profit and loss account. or dealer’s margin or are securities included in the portfolio in which a pattern of short-term profit making exists.2 Cash and cash equivalents For the purpose of the cash flow statement. The difference between the sale and contracted repurchase price is accrued over the period of the contract and recorded as an expense. call money lendings and overdrawn nostro accounts.

2011 Surplus / deficit arising on revaluation of quoted securities classified as 'available for sale' is included in the statement of comprehensive income but is kept in a separate account shown in the statement of financial position below equity. Plant and Equipment'.6 Fixed assets and depreciation (a) Change in accounting policy 83 During the year the Bank has changed its accounting policy in respect of measurement of the carrying amount of its freehold land. Specific and general provisions are made in accordance with the requirements of the Prudential Regulations issued by the State Bank of Pakistan from time to time. the Bank shall also be able to avail the benefit of revaluation surplus in its capital adequacy calculation as specified by the SBP. Unearned finance income is recognised over the term of the lease. Revaluation of these assets shall be carried out with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Provision for diminution in the value of term finance certificates is made as per the Prudential Regulations issued by the SBP. if any. A receivable is recognised on commencement of lease term at an amount equal to the present value of the minimum lease payments. so as to produce a constant periodic return on the outstanding net investment in lease. A significant or prolonged decline in fair value of an equity investment below its cost is also considered an objective evidence of impairment. Non-performing advances are written off only when all possible courses of action to achieve recovery have proved unsuccessful. the land and buildings were carried at their cost less accumulated depreciation and accumulated impairment losses. the impairment loss is recognised in the profit and loss account. Murabaha Murabaha transactions are accounted for at gross receivable net of specific and general provisions. Previously. In the opinion of the management. Gain or loss on sale of investments is included in the profit and loss account currently.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. the cumulative loss that has been recognised directly in surplus / deficit on revaluation of securities on the statement of financial position below equity is removed there from and recognised in the profit and loss account. In this respect the Bank has decided to follow the revaluation model as allowed under International Accounting Standard 16: 'Property. 7. The surplus / deficit arising on revaluation of quoted securities which are classified as 'held for trading' is taken to the profit and loss account. Impairment loss in respect of investments classified as available for sale (except term finance certificates) and held to maturity is recognised based on management's assessment of objective evidence of impairment as a result of one or more events that may have an impact on the estimated future cash flows of the investments. In case of impairment of available for sale securities. In addition. the revised policy will result in a more realistic reflection of the value of these assets in the financial statements and is also in line with the policy generally followed by banking companies in Pakistan. buildings on freehold land and buildings on leasehold land subsequent to initial recognition.5 Advances Loans and advances Advances are stated net of specific and general provisions. Specific and general provisions for advances are made in accordance with the requirements of the Prudential Regulations and other directives issued by the SBP and charged to the profit and loss account. including guaranteed residual value. The impacts of this change have been disclosed in note 12. leasehold land. 7. Premium or discount on acquisition of investments is amortised through the profit and loss account over the remaining period till maturity using the effective interest method. For investments classified as held to maturity. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Net investment in finance lease Leases where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset are classified as finance leases.3 to these financial statements. In accordance with the new policy the land and buildings of the Bank shall be carried at revalued amount.

under operating leases are charged to income on a straight line basis over the lease term.owned FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Fixed assets other than for freehold land and buildings on freehold land are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation on operating fixed assets (excluding land which is not depreciated) is charged using the straight line method in accordance with the rates specified in note 12. (c) Tangible assets . All expenditure connected with specific assets incurred during installation and construction period are carried under this head. As noted above freehold land and building on freehold land are now carried at revalued amount less any accumulated depreciation and subsequent impairment losses. at each balance sheet date. Depreciation on additions is charged from the month the assets are available for use. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Bank. are taken to the profit and loss account in the period in which they arise except that the related surplus on revaluation of fixed assets (net of deferred taxation) is transferred directly to unappropriated profit. if any. The surplus on revaluation of fixed assets to the extent of incremental depreciation charged on the related assets is transferred to the unappropriated profit. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to the future periods. No depreciation is charged in the month of disposal. as appropriate. if any. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset. The finance charges are allocated to the accounting periods in a manner so as to provide a constant periodic rate of return on the outstanding liability. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Assets held under finance lease are stated at the lower of their fair value or present value of minimum lease payments at inception less accumulated depreciation and accumulated impairment losses. Gains / losses on disposal of fixed assets. if any. Deficit arising on subsequent revaluation of fixed assets is adjusted against the balance in the above mentioned surplus account as allowed under the provisions of the Companies Ordinance. if any. 2011 84 Surplus arising on revaluation is credited to the surplus on revaluation of fixed assets account.4 applying the straight-line method over the useful life of the assets.leased Leases are classified as finance leases wherever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. if required. The asset's residual values and useful lives are reviewed and adjusted.2 to these financial statements after taking into account residual value. Lease payments. This account is shown below equity in the Statement of Financial Position. (e) Intangibles Intangible assets having definite lives are stated at cost less accumulated amortisation and accumulated impairment losses. if significant. Amortisation except for customer relationship is charged as disclosed in note 12. Amortisation is calculated so as to write-off the assets over their expected economic lives at . if any. leasehold land and building on leasehold land are subsequently revalued pursuant to the change in Bank's accounting policy. only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. if any. Any deficit in excess of the surplus previously recognised is charged to the profit and loss account. (b) Tangible assets . (d) Capital work in progress Capital work-in-progress is stated at cost less accumulated impairment losses. As noted above. All other repair and maintenance expenditure are charged to the profit and loss account as and when incurred. These are transferred to specific assets as and when assets become available for use. 1984. All other leases are classified as operating leases.

Deferred Deferred tax is recognised using the balance sheet liability method on all temporary differences between the carrying amounts of assets and liabilities used for financial reporting purposes and amounts used for taxation purposes. The charge for current tax also includes adjustments relating to prior years. except to the extent that it relates to items recognised directly in equity or below equity / other comprehensive income. Current Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws for taxation on income earned. No amortisation is charged for the month in which the asset is disposed of. arising from assessments finalised during the year. assets are written down to their recoverable amount. Deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefits will be realised. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 85 Intangible assets having an indefinite useful life are stated at acquisition cost less accumulated impairment losses. 2011 rates specified in note 12. 7. The Bank also recognises deferred tax asset / liability on deficit / surplus on revaluation of securities/fixed assets which is adjusted against the related deficit / surplus in accordance with the requirements of International Accounting Standard (IAS-12) Income Taxes. if appropriate. The carrying amount of the deferred tax asset is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised. The residual value. Income tax expense is recognised in the profit and loss account. if necessary. if any. The charge for the current tax is calculated using tax rates enacted or substantively enacted at the balance sheet date.4 to these financial statements. are taken to the profit and loss account in the period in which they arise. only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably. Gains and losses on disposals. at each balance sheet date. if any. in which case it is recognised in equity or below equity / other comprehensive income.7 Impairment The carrying amount of assets is reviewed at each balance sheet date for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. as appropriate.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. An impairment loss is reversed if there has been a change in the estimate used to determine the recoverable amount. Deferred tax is calculated using the rates that are expected to apply to the period when the differences reverse based on tax rates that have been enacted or substantively enacted by the balance sheet date. useful life and amortisation method is reviewed and adjusted. The resulting impairment loss is taken to the profit and loss account. the Bank also records deferred tax asset on available tax losses. Amortisation is charged from the month in which the asset is available for use.9 Non-current assets held for sale The Bank classified a non-current asset (or disposal group) as held for sale if its carrying amount will be recovered principally though a sale transaction rather than through continuing use. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. 7. 7. Such reversals are only made to the extent that the asset's carrying amount does not exceed the amount that would have been determined if no impairment loss had been recognised.8 Taxation Income tax expense comprises current and deferred tax. In addition. . If such indication exists. and where the carrying value exceeds the estimated recoverable amount. Subsequent costs are included in the asset's carrying amounts or recognised as a separate asset.

Interest / return / mark-up on rescheduled / restructured advances and investments is recognised as permitted by the State Bank of Pakistan. Financing method is used in accounting for income from lease financing. except appropriations which are required by law. Impairment losses are recognised though the profit and loss account for any initial or subsequent write down of the non-current asset (or disposal group) to fair value less costs to sell. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates. Dividend income from investments is recognised when the Bank's right to receive the dividend is established. in the opinion of the management. 'Events after the Balance Sheet Date' in the year in which they are approved / transfers are made. b) Defined benefit scheme The Bank operates an approved funded gratuity scheme for all its permanent employees and employees who are on contractual service and are employed under non-management cadre who complete the prescribed eligibility period of service. documentation charges. Unrealised finance income in respect of non-performing lease finance is held in suspense account. 7.13 Proposed dividend and transfer between reserves Dividends and appropriations to reserves. Cumulative net unrecognized actuarial gains and losses at the end of the last reporting year are recognised over the expected average remaining working lives of the employees.14 Revenue recognition Mark-up income / interest on advances and returns on investments are recognised on a time proportion basis except that mark-up income / interest / return on non-performing advances and investments is recognised on receipt basis in accordance with the requirements of the Prudential Regulations issued by the State Bank of Pakistan. 7. where necessary. 7.11 Staff retirement benefits a) Defined contribution plan The Bank operates a contributory provident fund for all its permanent employees to which equal monthly contributions at the rate of 10 percent of basic salary are made by both the Bank and the employees. Borrowing cost that are directly attributable to the acquisition. Subsequent gains in fair value less costs to sell are recognised to the extent they do not exceed the cumulative impairment losses previously recorded. Projected Unit Credit Method is used for the actuarial valuation. in accordance with the requirements of the Prudential Regulations issued by the State Bank of Pakistan.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Gains / losses on termination of lease contracts. made subsequent to the balance sheet date are considered as non-adjusting events and are recorded in the financial statements in accordance with the requirements of International Accounting Standard (IAS) 10. construction or production of a qualifying asset (one that takes a substantial period of time to get ready for use or sale) is capitalised as part of the cost of the asset. Borrowing / deposit costs are recognised as an expense in the period in which these are incurred to the extent that they are not directly attributable to the acquisition of or construction of qualifying assets. Contributions to the fund are made on the basis of actuarial recommendations.10 Provisions FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Provisions are recognised when the Bank has a legal or constructive obligation as a result of past events. 7. Premium or discount on acquisition of debt investments is capitalised and amortised through the profit and loss account over the remaining period till maturity. Under this method. 2011 86 A non-current asset (or disposal group) held for sale is carried at the lower of its carrying amount and the fair value less costs to sell. - - . front-end fee and other lease income is recognised as income when they are realised. the unearned finance income (excess of the sum of total lease rentals and estimated residua value over the cost of leased assets) is taken to income over the term of the lease so as to produce a constant periodic rate of return on the outstanding net investment in lease. 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. it would not be prudent to do so. except where. Staff retirement benefits are payable to staff on completion of prescribed qualifying period of service under these schemes.12 Borrowings / deposits and their cost Borrowings / deposits are recorded at the proceeds received. A non-current asset is not depreciated while classified as held for sale or while part of a disposal group classified as held for sale. 7.

Offsetting Financial assets and financial liabilities are set off and the net amount is reported in the financial statements only when the Bank has a legally enforceable right to set off and the Bank intends to either settle on a net basis. other assets. lendings to financial institutions. Any change in the fair value of derivative financial instruments is taken to the profit and loss account. advances. 7. 87 7. Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing at the balance sheet date. . or to realise the assets and to settle the liabilities simultaneously. Other income is recognised on accrual basis. Basic EPS is calculated by dividing the profit attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. (b) Translation gains and losses Translation gains and losses are included in the profit and loss account. investments. 7. 2011 Fee. Income and expense items of such assets and liabilities are also offset and the net amount is reported in the financial statements. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with these assets and liabilities.19 Earnings per share The Bank presents basic and diluted earnings per share (EPS) for its shareholders. Foreign bills purchased and forward foreign exchange contracts are valued at rates determined with reference to their respective maturities. borrowings. 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 prevailing at the reporting date.15 Foreign currencies FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 (a) Foreign currency transactions Transactions in foreign currencies are translated into rupees at the foreign exchange rates prevailing at the transaction date. Acceptances are accounted for as off balance sheet transactions and are disclosed as contingent liabilities and commitments. 7. Diluted EPS is determined by adjusting the profit attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares. Financial advisory fee is recognised when the right to receive the fee is established. Forward purchase contracts with the State Bank of Pakistan relating to foreign currency deposits are valued at the spot rate prevailing on the balance sheet date.16 Commitments Commitments for outstanding forward foreign exchange contracts are disclosed in the financial statements at committed amounts. if any. brokerage and commission on letters of credit / guarantee and others is recognised on time proportion basis. The Bank expects most acceptances to be simultaneously settled with the reimbursement from the customers. deposits. bills payable. balances with other banks. 7. The forward cover fee payable on contracts with the SBP is amortised over the term of the contract. liabilities against assets subject to finance lease and other liabilities.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Derivative financial instruments Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value using appropriate valuation techniques.17 Acceptances Acceptances comprise undertakings by the Bank to pay bills of exchange drawn on customers. All derivative financial instruments are carried as assets when fair value is positive and liability when fair value is negative.18 Financial instruments Financial assets and financial liabilities Financial instruments carried on the balance sheet include cash and balances with treasury banks.

656 2010 3.local currency current accounts National Prize Bonds 2011 Rupees '000 3.108 .foreign currency current accounts . deposits.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. to make decisions about resources to be allocated to the segment and assess its performance. consumers. 2011 88 7.160 17.050 1.044. Note 8 CASH AND BALANCES WITH TREASURY BANKS In hand . lending and repos. lending. export finance. securitisation.886.084. It includes loans.020 1.local currency .foreign currencies With the State Bank of Pakistan in .572. including revenues and expenses that relate to transactions with any of the Bank's other components. An operating segment is a component of the Bank that engages in business activities from which it may earn revenues and incur expenses. These have been presented as per the Bank's functional structure and guidance of SBP. own position securities.416. Trading and Sales It includes fixed income. guarantees. privatisation. An operating segment's operating results are reviewed regularly by the President / Chief Executive Officer. Retail banking Retail banking provides services to small borrowers i.foreign currency deposit accounts With the National Bank of Pakistan in .629 18. Commercial banking This includes strategic partnership with corporate and SME sector entities to provide working capital financing. trade financing and cash management services.428.739. bills of exchange and deposits.817 3.924 8. leasing.1 8.local currency current accounts .543 479.e.202. (b) Geographical segment The operations of the Bank are currently based only in Pakistan. project finance.829 8.012. underwriting.985 2.2 8. which have been presented according to the functional basis and the guidance of SBP.041. and for which financial information is available. small and medium enterprises (SMEs) and agriculture sector.505 4. Initial Public Offers (IPOs) and secondary private placements. funding. equity. other transactions and balances with retail customers.20 Segment reporting Segment reporting is based on operating (business) segments of the Bank.064 956. The segments of the Bank are as follows: FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 (a) Business Segments Corporate finance This includes investment banking activities such as mergers and acquisitions.920 1.3 8.445.504 18.350 1. foreign exchanges.414.

.685.1 million) placed with The Royal Bank of Scotland.Current accounts Outside Pakistan . 1956.1 This represent deposit of USD 26.676.981 2. 15 of 2008 dated June 21.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.872. 14 and 15 dated June 21.058 4. This section requires banking companies to maintain a local currency cash reserve in a current account with SBP at a sum not less than such percentage of the Bank's time and demand liabilities in Pakistan as may be prescribed. 2011 8.1 9. 14 of 2008 dated June 21. This represents cash reserve of 5% maintained with State Bank of Pakistan in US dollars current account on deposits held under the New Foreign Currency Accounts Schedule (FE. UK (RBS PLC) London as margin against interest rate and cross currency derivative contracts entered with RBS PLC.Current accounts .1 This represents local currency current account maintained with the SBP as per the requirements of Section 36 of the State Bank of Pakistan Act. 2008 and local USD clearing account maintained with SBP to facilitate USD clearing and 6% special cash reserve requirement on FE-25 deposits maintained by Islamic Banking branches under the requirements of BSD Circular No.028 5. Note 9 BALANCES WITH OTHER BANKS In Pakistan .727.6 million (2010: USD 29.25 deposits) as per BSD Circular No. The SBP has not remunerated any return on these deposits during the current and the last year.987 2. The deposit balance varies according to the outstanding balance of the derivative contracts and will be released completely on maturity of last derivative contract in September 2014. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 89 8. Profit rates on these balances are fixed on monthly basis by the SBP. 2008.388.718 558.492.894 2.18%) per annum.3 This represents special cash reserve of 15% maintained with SBP in US dollars under the requirements of BSD Circular No.679 424. It carries markup at the rate of 0.Deposit account 2011 Rupees '000 2010 1. 2008.909 9.2 8.10% (2010: 0.

084) 94.952 300.064 2.005 10.645.1 10.NIT Income Fund .891.228 425.601) 86.545.000 108.365.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.263 6.4 21.230 100.net (Deficit) / surplus on revaluation of available for sale securities .153 415.000 108.Faysal Balanced Growth Fund .497.834.378 414.730.058 921.906.997.518.473.000 27.374 200.000 80.598 8.AKD Income Fund .905.270 13.200.259 2.National Investment (Unit) Trust LOC Holders' Fund .JS KSE 30 Index Fund .906.3.084) 72.589.865 718.868) 93.3.100.770 10.937) 71.706 (38.817 44.151 (1.257.483 10.Faysal Management Services (Private) Limited Investments at cost Less: Provision for diminution in the value of investments Investments (net of provisions) (Deficit) / surplus on revaluation of held for trading securities .260.936 21.724.497.765.537 63.651) (798.473.360.000 96.888 3.587.496 10.836.477 16.545.905.250.2.net Total investments -----------------------------------------------------------------.834.171 51.253.000 80.1 10.287 420.000 77.355.461.000 826 2.000 208.952 300.000 Given as collateral 21.115 8.830 5.378 414.629.371 45.230 100.190.867) 10.253.982.009 50.009 50.000 100.3.4 - - 10.039.182 .2 (38.500 5.263 6.2.834.Rupees '000 -----------------------------------------------------------------10.000 1.936 21.5 22.483 - Total 2.2.000 1.629.First Habib Income Fund .JS Large Capital Fund .039.418.446 7.601) 75.000 826 2.409.496 10.136 2.000 208.500 5.Faysal Savings Growth Fund .3 108.200.000 3.702 35.2 10.550 18.3.000 80.470 7.000 3.401.136 2.724.589.2.2.2 & 10.000 88.611.360.836.687.854 (1.095.Faysal Money Market Fund .171 29.107 62.702 35.064 2.446.000 80.616 10.046 27.724.765.888 3.724.865 718.000 74.IGI Income Fund .187 Held by Bank 2.000 50.549 Held for trading securities Market Treasury Bills Pakistan Investment Bonds Fully paid up ordinary shares / certificates of closed end mutual funds Ijara Sukuk Bonds Available for sale securities Market Treasury Bills Pakistan Investment Bonds Ijara Sukuk Bonds Units of open ended mutual funds .000 50.3.707.000 100.243 3.645.630.3 10.888 3.374 200.830 5.000 100.470 7.495.546 2.046 27.043 6.817 54.2 10.709 5.000 208.Faysal Islamic Savings Growth Fund .125.200.PICIC Income Fund .888 3.HBL Income Fund .709 5.000 100.273.000 108.Faysal Income Growth Fund .537 73.875 2.963 7.1 INVESTMENTS Investments by type and segment are given below while the detailed break down is contained in Annexure I to these financial statements.713 1.National Investment (Unit) Trust .713 1.368 1.933 Given as collateral 10.905.969 1.033 18.374 200.2.364.100.3 10.634 (1. Investments by type 2011 2010 Note FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Held by Bank 2.259 2.883 (230.3 & 10.368 1.206 13.374 200. 2011 90 10 10.516.000 27.707.000 208.834.516.2.936 - Total 2.461.500) 75.Faysal Asset Management Limited Subsidiary Fully paid up ordinary shares of: .228 425.883 (193.483 10.371 45.250.Al-Meezan Mutual Fund Fully paid up ordinary shares / modaraba certificates / certificates of closed end mutual funds Fully paid up preference shares Term finance certificates Held to maturity securities Term finance certificates Sukuk Bonds Associate Fully paid up ordinary shares of: .376 45.3 10.355.875 2.043 6.307 3.367) 86.790 (1.376 45.107 84.495.969 1.287 420.6 10.546 2.477 16.364.651) (742.058 921.587.483 (36.069 21.355.153 415.3 10.936 56.

916 (731.000 1.783 (509. 16 of 2006 dated August 01. these can be sold before the stipulated period with the prior permission of the SBP.498 (62. However. The overall exposure limit for equity investments prescribed by the SBP does not apply to these investments.000 108.262 .526 467.142) 1.356 794.371 Strategic investments are those which the Bank makes with the intention of holding them for a long term duration and are marked as such at the time of investment.110.Listed Fully paid up ordinary shares / modaraba certificates / units of closed end mutual funds Units of open ended mutual funds Available for sale securities .1 Strategic Investments Available for sale securities .271 108.Unlisted Fully paid up ordinary shares Associate Subsidiary Provision for diminution in the value of investments (Deficit) / surplus on revaluation of available for sale securities 2010 Rupees '000 91 784. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 1.558.000 108.907.250 45. 2006. 2011 2011 10.522.873 1.418) 1. Disposals of such investments can only be made subject to the fulfillment of the requirements prescribed by the SBP.013.000 2.845. investments marked as strategic have a minimum retention period of 5 years from the original purchase date.285) 1. Further.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.250 45. as per the SBP instructions in BPD Circular Letter No.1.638.498 96.140 143.

Unlisted companies 6.340.355.368 100.108.187 315.755.084) 94.189 2.Listed companies / modarabas / mutual funds .290.Listed .2 Investments by segments Note 2011 Rupees '000 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Federal Government Securities .883 (230.Pakistan Investment Bonds .2 10.528 9.707.Market Treasury Bills .418.074 1.151 984.790 (1.969 100.601) 86.091.Unlisted companies 314.830 96.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.033 18.176 6.970 57.324.3 & 10.653 4.549 Term Finance Certificates .495.122 8.706 (38.909.2.000 414.412 1.759 76.2.287 67.495.455 10.929 972.3.Unlisted Units of Open ended Mutual Funds Sukuk Bonds Total investments at cost Less: Provision for diminution in the value of investments Investments (net of provisions) (Deficit) / surplus on revaluation of investments classified as held for trading Deficit on revaluation of investments classified as available for sale Total investments 10.301.3.969 6.634 (1.095.3 54.215 4.905.Listed companies .738.3 2.630.363 7.2 801.290 9.330.463 8.065.125.882 10.Ijara Sukuk Bonds 10.917. 2011 92 10.409.2 .683 13.713 1.4 10.587.3.438 4.463 Fully Paid up Ordinary Shares / Modaraba Certificates / Closed end Mutual Fund Units .1 10.190.844.000 415.3.360.514 5.5 22.371.501.868) 93.105 Fully Paid up Preference Shares .2.3 10.292.496 88.761.368 7.528.651) (742.367) 86.

1 Particulars of provision for diminution in the value of investments by type and segment Available for sale securities Fully Paid up Ordinary Shares / Modaraba Certificates / Certificates of Closed end Mutual Funds .052 324.601 1.Listed . 10.263 461.140 4.905.2% to 13.140.084 1.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.4 During the year.255 68.2.3% per annum (2010: 4.459 38. 10.3. 2011 10.495 .Listed companies / modarabas / mutual funds .3% per annum) with maturities up to November 2012.3 Ijara sukuk bonds have tenure of three years with maturities upto December 2014.05% per annum (2010: 12.3 Particulars of provision for diminution in the value of investments 2011 Rupees '000 Opening balance Charge for the year Reversals Provision against investments transferred from amalgamated entity Closing balance 10.495.79% to 14.Unlisted Held to maturity securities Term Finance Certificates .Unlisted companies Fully Paid up Preference Shares .495.204 342.094 180.495.264 1.084 80. these units were redeemed and the Bank had recognised a gain of Rs 168.562 19.353 32.905.824 (286.2.64% to 13.179 548.Unlisted Sukuk Bonds 126.9% per annum (2010: 12.392 227.Listed companies Units of Open ended Mutual Funds Term Finance Certificates . 10.11% per annum). The Bank’s return on these investments ranges from 11.941 (244.2. The Bank’s yield on these instruments ranges from 11.082 531.1 Market Treasury Bills have tenures ranging from three months to one year.483 1.6% to 13.000 1. The Bank’s return on these investments ranges from 4. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 93 10.202 million upon redemption of these units.341) 409.6% to 14.386 1.327 75.2 Pakistan Investment Bonds have tenures of 3 to 10 years.779 469.2.686) 287.601 695.601 2010 471.6% to 14.3% per annum) with maturities from June 2012 to August 2021.

the provision against investments would have been higher by Rs 77.356 750 18.661 million (2010: Rs 1. 10.3. The State Bank of Pakistan through its letter BPRD/BLRD-3/DMG/2011-1035 has advised the Banks to maintain provision at least at the level of 90% in five quarters (commencing from December 31. BSD/BRP/-1/34166/274/12 dated January 6. 2012. which forms an integral part of these financial statements. The Bank as per the above directive has availed the relaxation and maintained a provision of Rs 450 million against this investment. in their financial statements for the quarter ending March 31.117. 2012 has allowed banks not to classify their exposure in these Sukuks till February 28.1 to these financial statements. 2012.117.883 2010 .3. However. 10.423) (163) (37.4 This investment includes the Sukuk Bonds of Rs 309. 2011 would have been lower by Rs 50 million (2010: Rs 170 million). 10. The SBP vide its letter No. Had the provision been made as per the time based criteria specified in the Prudential Regulations issued by the SBP. 10.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. then banks should classify the exposure as per ageing criteria laid down in Prudentia Regulations.3. However. The impact of relaxation availed by the Bank for maintaining the provision against these investments is disclosed in note 11. 2011 would have been higher by Rs 50 million (2010: Rs 170 million) and the profit before taxation for the year ended December 31.065) (38.473 million issued by Maple Leaf Cement Factory Limited (MLCFL).3 This investment includes the term finance certificates and Sukuk Bonds of Rs 1.2 This includes Pre IPO investment of Rs 500 million made in the unlisted term finance certificates (TFCs) of Dewan Cement Limited. 2011 94 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 10. 2011. in the event MLCFL fails to fulfill its due obligations.4 Quality of available for sale securities The details regarding the quality of available for sale securities and their mark-up / interest and other terms are contained in Annexure I. 2010) by December 31.651) (223) 18.689 million) and Rs 500 million (2010: Rs 500 million) respectively issued by Agritech Limited and Azgard Nine Limited.4. the provision for diminution in the value of investments for the year ended December 31. Had the exemption not been provided by the SBP. unrealised mark-up on this exposure should be kept in memorandum account instead of crediting to income account.368 million and the profit before taxation for the current year would have been lower by the same amount.5 Surplus / (deficit) on revaluation of investments classified as held for trading 2011 Rupees '000 Market Treasury Bills Pakistan Investment Bonds Fully paid up ordinary shares / certificates of closed end mutual fund Ijara Sukuk Bonds (1.

014 280 201.6 On October 1.000 20.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.9 The annual audited financial statements of the subsidiary are available for inspection at registered office of the Bank.778 189. 1984.176 535 9.800.at fair value Advance income tax .424 3.23 180.931 20. resolved to initiate proceedings of winding up by the members of FMSL under the Companies Ordinance.007 176 188.183 1.417 5. subscribed and paid-up capital 1. 95 10.000 (2010: 3.basic and diluted 777 20.095 14.000 180.773 254 12. 2011 10. 2011 on the grounds that the management of FMSL has initiated winding-up process. 2011 and the profit and loss account for the year ended December 31.100 each Issued.294 180. 2010. However.961 2011 Rupees '000 2010 300.250 189.618 201.net Bank balances EQUITY AND LIABILITIES Share capital and reserves Authorised Capital 3.7 10.000 8. .100 each fully paid in cash Unappropriated profit Unrealised gain on revaluation of investments Current liabilities Accrued and other liabilities PROFIT AND LOSS ACCOUNT Operating expenses Other income Other charges Profit before taxation Taxation Profit after taxation Earnings per share .000 180.000) ordinary shares of Rs.000.007 9.961 10. and would be available to the members on request without any cost. 2011 of FMSL is as follows: STATEMENT OF FINANCIAL POSITION ASSETS Current assets Investments available for sale .154 167 19.294 300.10 2.000 (2010: 1. the Board of Directors of Faysal Management Services (Private) Limited (FMSL) [a subsidiary of the Bank in which the Bank has 60% shareholding] decided to voluntarily wind up the company and accordingly.220 456 20.794 220 201.000. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 The external auditors of FMSL have added an emphasis of matter paragraph in their auditors report on the financial statements of FMSL for the year ended December 31.000) ordinary shares of Rs.8 An extract of the audited statement of financial position as at December 31. the management of FMSL believes that no adjustment is required in the financial statements of FMSL due to aforesaid winding-up as the stated value of assets and liabilities approximate to their respective realisable / settlement amounts.800.987 11.

123) (259.856 6.938.062.200 151.045.730.249.639 2.093 148.534 645.483.986 151.847 70. etc.483 165.503.1 Particulars of advances (Gross) 11.706.563.769 Bills discounted and purchased (excluding government treasury bills) Payable in Pakistan Payable outside Pakistan Margin financing / reverse repo transactions Gross advances Provision against non-performing advances Provision against consumer loans .176.2 156.029.4 11.161.206. – in Pakistan Net investment in finance lease – in Pakistan FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 11.330 94.929.440 1.423 5.441 8.2 Short term (upto one year) Long term (over one year) 163.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.163.067) (336.995 140.689.net of provision 11.4.206.270 162.675 338.1 11.330 146. cash credits.551 1.409 .200 165.212) 148.684.076.126 1.1.483.330 (17.284. 2011 96 11 ADVANCES Note 2011 Rupees '000 2010 Loans.409 (17. running finances.235 1.1.588 68.573) 133.691 165.409 82.206.004 128.841.406.5 11.979.483.625.364.821 151.general Advances .1 In local currency In foreign currencies 11.453 2.061.

002 2.119 302.895 3.583 20.202.622 26.843.843.289) 6.202.893 5.551.824 17.230.369.021 557.928.490 15.859 2.123 2010 Classified Advances Provision required Provision held Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total ------------------------------------------------------------------------.737.616 (1.671 2.758 646.843.684.415.490 15.824 17.809.484.Rupees '000 ------------------------------------------------------------------- .490 15. 26.707.209 (108.971) 2.287 17.270 4.501.343 2.379 2.750 - 6.705.067 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 11.055 2.932.415.197.535.355) 3.911.843.067 646.523) 8.163.501.021 557.455 884.490 15.559 (489.350 (380.Rupees '000 ---------------------------------------------------------------Category of classification Other Assets Especially Mentioned (Agri financing) Substandard Doubtful Loss 194.318) 3.485.721 4.048. 24.256 2.290 673.278 16.824 17.671 2. 2011 97 2011 Not later than one year 2010 Lease rentals receivable Residual value Minimum lease payment Finance charge for future period Present value of minimum lease payment 2.044.287 17.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.684.163.891 - 4.485.119 - 194.408 4.173.321 19.168) 4.618 988.278 16.123 - 302.622 26.583 2.303 7.202.Rupees '000 ---------------------------------------------------------------Category of classification Other Assets Especially Mentioned (Agri financing) Substandard Doubtful Loss 307.067 646.163.384 1.123 302.758 307.183 24.983.684.093 11.062.186.932.055 2.859 2.290 673.062.824 17.708 million) which have been placed under non-performing status as detailed below: 2011 Classified Advances Provision required Provision held Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total ------------------------------------------------------------------------.021 557.321 19.511 (481.583 20.044.153.163.021 557.062.067 646.062.801 1.287 17.020.287 17.183 24.2 Net investment in finance lease Later than Over five Total Not later Later than Over five Total one and years than one one and years less than year less than five years five years -----------------------------------------------------------------.689.707.583 2.202.105 (567.772.3 Advances includes Rs.044 million (2010: Rs.278 16.290 673.268.804.278 16.123 - 302.939.614 9.290 673.611.230.

540 (2. 2011 98 Specific 2011 General (excluding consumer loan) Total Specific 2010 General (excluding consumer loan) Total 11.123 17.7.452) 330.1 Provision against advances transferred from amalgamated entity Closing balance -----------------------------------------------------.032) 17.123 17. 2012 has also allowed extension for withholding provisioning against the exposure of Azgard Nine Limited till February 29.4. the SBP vide its letter no.336 2.4. Under the revised guidelines issued by the SBP.412) 1. 2012. Prudential Regulations R-22 for Consumer Financing: Mortgaged residential property 75% for first and second year 50% for third and fourth year.088 (431.3. 2012. BSD/BRP1/000776/2012 dated January 18.2 a.617.090.058 (600.409. 1 dated October 21. 2011 (effective from September 30.437 (829) 8. and industrial properties (land and building only) Benefit of FSV allowed from the date of classification 75% for first year 60% for second year 45% for third year 30% for fourth year.123 17.088 (431.032) 17. banks have been allowed to avail the benefit of forced sales value (FSV) of assets held as collateral against non-performing loans and advances as follows: Prudential Regulation R-8 for Corporate / Commercial Banking and Prudential Regulation R-11 for SME Financing: Category of Asset Mortgaged residential.420.058) 6. The State Bank of Pakistan vide its letter no.3.3 the Bank has also made investments in term finance certificates and sukuk bonds of Rs 1.050 million and Rs 1.163.1 This includes classified advances of Rs 429.420. BSD/BRP-1/001485/2012 dated February 2.067 2.452) 330.067 2.506. Had the exemption not been provided by the State Bank of Pakistan. commercial.012 million and Rs 310. 2012 has allowed extension for withholding provisioning against the exposure of Agritech Limited till February 28.062.649 million.4 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Particulars of provision against non-performing advances Opening balance Charge for the year Transfer from / to general provision Reversals during the year Net charge Amounts written off .906.540 (2.412) 2.3 to these financial statements) would have been higher by Rs 394.067 184.163. 2011).067 11.062. and 10% for third year 40% for three years Plant and Machinery under charge Pledged stock b.123 6. In addition. and 30% for fifth year . During the year the State Bank of Pakistan (SBP) has introduced certain amendments in the Prudential Regulations in respect of maintenance of provisioning requirements against non-performing loans and advances vide BSD Circular No. the provision against loans and advances and investments (as more fully explained in note 10. In addition.011.791 (600. 11.058) (184. and 20% for fifth year 30% for first year 20% for second year.79 184. These extensions have been allowed to all those banks who have agreed to reschedule / restructure their exposures against these companies.163.409.750. as disclosed in note 10.750. The financing facilities disbursed to Agritech Limited and Azgard Nine Limited have been restructured / agreed to be restructured as a result of financial difficulties / repayment problems being faced by these companies.117.506.163.note 11.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.058 (184.661 million and Rs 500 million issued by Agritech Limited and Azgard Nine Limited respectively.664.394 2.848.379 (829) 8.153 million disbursed to Agritech LImited and Azgard Nine Limited respectively.Rupees '000 -----------------------------------------------------17.599 million respectively and the profit before taxation for the current year would have been lower by Rs 2.

749 13.067 17.935 464.062.035 464.590.123 17.2 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . the specific provision against non-performing loans would have been higher and consequently profit before taxation and advances (net of provisions) as at December 31.062.212 2010 190.349 98.5 percent of the fully secured regular portfolio of consumer loans and 5 percent of the unsecured regular portfolio of consumer loans as per the requirements of the Prudential Regulations issued by the SBP. 500. however. 2009.067 94. 2011 Under the previous guidelines issued by the SBP which were effective from September 30.5.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 11.7 11. commercial and industrial properties held as collateral against all non-performing loans for 3 years (4 years for open plot of land) from the date of classification for calculating provisioning requirement.Rupees '000 -----------------------------------------------------17. 2011 11.1 Particulars of write-offs Against provisions Directly charged to profit and loss account Write-offs of Rs.466.5 Particulars of provision against consumer loans . mortgaged residential. the benefit of Forced Sales Value of plant and machinery was not allowed to banks for determining provisioning requirement. However.132 369.062.749 431.163.000 and above Write-offs below Rs.3 11. 2011 would have been lower by approximately Rs 1.163.067 99 In local currency In foreign currencies Total 2011 Rupees '000 11.175 million).123 17. These securities comprise of charge against various tangible assets of the borrower including land.032 33. Particulars of provision against non-performing advances: 2011 2010 General General Specific Total Specific Total -----------------------------------------------------. However.067 11.361) 259.7.920 98.573 (77. Had the provision against non-performing loans and advances been determined in accordance with the previously laid down requirements of the SBP. banks were allowed to avail the benefit of 40% of forced sales value of pledged stocks and mortgaged residential.163. building and machinery.123 17.123 17. stock in trade. the Bank still holds enforceable collateral against certain non-performing loans in the event of recovery through litigation.general Opening balance Reversals during the year General provision against consumer loans transferred from amalgamated entity Closing balance 336.730) 236.067 17.400 85. commercial and industrial properties and plant and machinery would not be available for payment of cash or stock dividend.7. as per the circular the additional impact on profitability arising from availing the benefit of forced sales value against pledged stocks.4. 500.228 336.6 General provision against consumer loans represents provision maintained at an amount equal to 1.000 2010 Rupees '000 829 97.152.075 (89.4. 2011 which is not available for either cash or stock dividend to shareholders amounted to approximately Rs 2.net of tax at December 31. etc.573 11. Although the Bank has made provision against its non-performing portfolio as per the category of classification of the loan.464 million (2010: Rs 1.067 17.062.4 The additional profit arising from availing the FSV benefit .229 million.163.1 11.

495 492.044.8 Details of loan write-offs of Rs 500.787.495 1.II to these financial statements.847 2.847 3.000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance.750 (2. partners or in the case of private companies as members Balance at beginning of the year Loans granted during the year Repayments during the year Balance at end of year Loans transferred from amalgamated entity Debts due by subsidiary companies. 2011 is given in Annexure . controlled firms.044 3. 802. executives or officers of the Bank or any of them either severally or jointly with any other persons * Balance at beginning of the year Loans granted during the year Repayments during the year Balance at end of the year Loans transferred from amalgamated entity Debts due by companies or firms in which the directors of the bank are interested as directors.999. Debts due by directors.954. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2011 11.9 Particulars of loans and advances to directors.558 1. 1962.229 (406.339.113) 802.451 2.551) 2.379 2.014.279 (1. 2011 100 11.132.600) 2.379 2010 Rupees '000 619.508 2.714) 1.052. etc.440.374 (44.168 802.235) 899. the write-off of loans does not affect the Bank's right to recover the outstanding loans from these customers.168 1.787. associated companies. the statement in respect of written off loans or any other financial relief of five hundred thousand rupees or above allowed to a person(s) during the year ended December 31. However.052.660 59.435 (1. managed modarabas and other related parties Balance at beginning of the year Loans granted during the year Repayments during the year Balance at end of the year * These include loans given by the Bank to its employees as per the terms of their employment.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.195 .014.195 (487) 801.457 686.339.708 2.093.

406 75. controlled firms.234 5.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.339.847 802.728 8.1 12.215 285.867.495 2.793.195 2. 2011 11.300 134.735 7.607 156.195 575.339.168 802.1 Capital work-in-progress Civil works Equipments Advances to suppliers and contractors 12. managed modarabas and other related parties 12 FIXED ASSETS Capital work-in-progress Tangible fixed assets Intangible assets 12.4 2011 Rupees '000 3.014.234 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .2 12. executives or officers of the Bank or any of them either severally or jointly with any other persons Debts due by companies or firms in which the directors of the Bank are interested as directors.671.9.444 2.220 575.849.052.495 2010 3.705 2.1 Maximum total amount of advances (including temporary advances) outstanding at the end of any month during the year 101 Note Debts due by directors.092 187. partners or in the case of private companies as members Debts due by subsidiaries.515 30.167 10.726.735 187.480.627 81.

346 85.116 20 to 33.047.855 242.995 790.974) 3.818 548.253.540 (61.2.488 5. The adjustments have no net impact on the carrying value of fixed assets.249.255 671.724) 383.714 (2.062. In addition.595 153.491 5 Leasehold property and improvement 2.906 4.763 (3.436. 2011 102 12.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.937 2.173 (11.634) 4.455 5 Building on leasehold land (note 12.253.096 2.732 1.705 20 * During the year the Bank has carried out a detailed exercise to reconcile its fixed assets records.333.667 1. building on leasehold land is now shown as a separate category.341 155.786) (20.272) (16.680.982 379.640) 213.232. Adjustments represent inter-category transfers identified as a result of this exercise.934.(Rupees in 000) ----------------------------------------------------------------889.2 Tangible fixed assets -----------------------------------------------------------------.169 1. Previously.209) 1.111 2.059.970 292.377 - 1.260.712 40.493 29.085 79.969.793.111) - 2.2) - - 3.057 12.784 1.424 - 234.195.618 (74.569 7.2011 ----------------------------------------------------------------COST As at January 1. 2011 Additions/ adjustments*/ revaluation surplus As at December 31.587 - - 267.080 19.795 1.236.250 (43.989.206 - (2.199 (1. it was merged in other categories.626 (239.466. depreciation December 31.202) (48.33 Vehicles Total Owned 284.170. 2011 (%) 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Deletions Additions Owned Freehold land -----------------------------------------------------------------.405) 140.718 624.355. 2011 As at January 1.407) 1.102) (139.441 10.821. fixtures.199 5 to 20 Office furniture.897 (231.670) 498.796 83.795 - Leasehold land 1.680 2. equipment and computers 4.801) (475.414 305.977.448) (269.419) (11. 2011 ACCUMULATED DEPRECIATION On deletions/ adjustments*/ revaluation surplus Book value As at Rate of at December 31.260.080 - Building on freehold 485.934) (23.890 72.904) 2.986.645. .

151 426.059.937 131.263.414 (72) 889.493 130.963 5 to 20 Office furniture.073 6.286.33 405.918 35.232.441 10.712 401.195.730 (72) 889.255 1.(Rupees in 000) ----------------------------------------------------------------Owned Freehold land 40.377 420.725) (364.680.320 1.320) 4. 2010 Additions / assets transferred from amalgamated entity Deletions / Writeoffs As at December 31. 2010 Book value at December 31. 2010 ACCUMULATED DEPRECIATION Additions / on assets transferred from amalgamated entity On deletions / writeoffs As at December 31.320) (202.294 38.184 848.535 5.906 4.873.776 72.934.206 19.173 - Leasehold land 467.764 1.071 1.661.333.414 1.470.782.409) (57.989 1.631 2.540 19.819 2.701.277 2.776 443.658 (24.727 20 to 33.173 29.874) (229.2010 ----------------------------------------------------------------COST As at January 1.009 397.334 - Building on freehold land 41.977.896 60.206 1.248 642.261 153.212.444 20 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .712 5 Leasehold property and improvement 1.917 660.779) (375.009 83.744.769 44.824 1.648 485.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. equipment and computers Vehicles Total Owned 1.982 1. 2010 Rate of depreciation (%) 103 -----------------------------------------------------------------.410 4.082.449.059 284. 2010 As at January 1. fixtures.833) (375.851) (82.466.278.409) 2.411.234 302.409 169.900 1. 2011 -----------------------------------------------------------------.648) (364.904 (26.624 21.867.424 16.

The freehold land. 34 million on account of a claim by a Bank.416. Had there been no revaluation. 3.440. buildings on freehold land and leasehold land from cost model to revaluation model.1 Included in cost of property and equipment are fully depreciated items still in use having cost of Rs. Surplus arising on revaluation of these assets is reflected in note 22. the Bank has changed its accounting policy for subsequent measurement of the carrying value of freehold land. 1. 2011 would have been as follows: 2011 Rupees '000 Freehold land Leasehold land Building on freehold land Building on leasehold land 877.835 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 As the revaluation is earned out as at December 31. during the year. 2011 by an independent valuer Iqbal A. the net book value of freehold l and. The revaluation resulted in a surplus of Rs 2. buildings on freehold land and buildings on leasehold land as at December 31. leasehold land. buildings on freehold land and buildings on leasehold land of the Bank were revalued on December 31.432 million (2010: Rs.2.687.3 As more fully explained in note 7. the change of policy did not have any impact on the profit for the current year.693 million).6 to the financial statements. 2011. Nanjee on the basis of professional assessments of the market values. 12. 2011 104 12.1 to these financial statements along with the related deferred tax impact thereon.798 million which has been recognised by the Bank.2.2 One of these properties is encumbered to the extent of Rs. leasehold land. . 12.140.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.023 million over the book value of Rs 4.449 1.487. leasehold land.198.994 1.520 145.

227) ** (20.167 40.596 2.135 174.932 199.317.227) ** 545.480. 2010 Deletions / Writeoffs ** As at December 31.1 Intangible assets include fully amortised items still in use having cost of Rs. .784 23.258.385 40. 2010 As at January 1. and other persons having cost of more than Rs.407 2. at December amortisation 2010 31.649 2.000 or above are disclosed in Annexure IV to these financial statements.671. 2011 % per annum FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 105 Additions Deletions -----------------------------------------------------------------.4.998 40.251 274.2011 ----------------------------------------------------------------COST As at January 1.135 139.949 2.116 586. 250.4.119) ** 700.557.557.518 586.889 131.(Rupees in 000) ----------------------------------------------------------------Computer software 700.889 155.079 20 to 33. 2010 % per annum Computer software 401.4.4 Intangible assets -----------------------------------------------------------------.981 - 3.167 (31.846 million).385 (20.1 million or net book value of Rs.968 174.516.33 Customer Relationship 2. 2011 As at January 1.968 139.039 Note 12.998 116.610 * 131.610 * - 240.596 306.398.128 20 to 33. 2011 12. 2011 As at December 31.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.4.932 677. 293.863.167 -----------------------------------------------------------------. 2011 ACCUMULATED DEPRECIATION Charge / transferred to equity* Charge on deletions As at Book value Rate of December 31. 12.949 545.3 Details of disposal of fixed assets to executives. at December amortisation 2011 31.557.167 * 23.557.407 - 917. 12.518 157.733 274.874 (31.167 - - 2.258.728 Note 12. 2010 Charge on deletions / writeoffs ** As at Book value Rate of December 31.119) ** 3.2 12.707 2.195 million (2010: Rs.784 2.821 163.981 840.518 199.33 Customer Relationship 401. 436.128 2.2 3.4.2 The intangibe asset representing customer relationship is being amortised over the life expectancy of these deposits.2010 ----------------------------------------------------------------COST Additions / assets transferred from amalgamated entity * ACCUMULATED DEPRECIATION Charge / on assets transferred from amalgamated entity * As at January 1.

164 14.632 1.173 29.068 13. 2011 106 13 DEFERRED TAX ASSETS .327 332.637 524.259 5.328.Surplus on revaluation of securities .468 5.862 14.237 1.713 708.575 475.275.011 (446.126 16.664 20.019) (852.246 244.3 .017.264.826 16.2 14.746 680.534 4. advance rent and other prepayments Taxation (payments less provisions) Branch adjustment account Non-banking assets acquired in satisfaction of claims classified as held for sale Credit cards and other products fee receivable Suspense account Unrealised gain on revaluation of forward foreign exchange contracts Dividend receivable Receivable from brokers against sale of shares Prepaid employee benefits Advance against islamic financing Others Less: Provision held against other assets Other assets (net of provisions) 5.302.138 230.473 881.085 4.091 (221.369 1.188.879 180.828.NET Deferred credits arising due to: .153 131 86.614 640.531 1.887 666.350 534.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.340 5.1 14 OTHER ASSETS Income / mark-up accrued in local currency Income / mark-up accrued in foreign currencies Advances.956) (797.014 561.879.596) - Note 2011 Rupees ‘000 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 22.517.750 820.672.308 99.1 1.659 5.226 294.887 195.019 10.280.159) (521.192.327 241.216) (73.306 105.202 (82.Fair value adjustments relating to net assets acquired upon amalgamation .Surplus on revaluation of fixed assets Deferred debits arising due to: Net investment in finance leases Provision against non-performing advances Provision for diminution in the value of investments Provision against other assets Minimum tax Unused tax losses (including unabsorbed depreciation) Deficit on revaluation of available for sale securities 11. deposits.732 97.927) 10.808.016.926) 11.Accelerated tax depreciation .120 28.295.068 12.891) (236.

635.076 34.696.Under scheme of financing facility for storage of agricultural produce Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts 16.192.621 (844) 61.270 118.192.999 446.575 (311.633.926 3.9 1.859 27.769 20.015 15.determined by professional valuer 14.578.337.322.927 1.877 39.639 21.828 2.4 16.450 34.under long term financing facility (LTFF) . 2011 14.443 2.933 109.904 221.904 34.276.043 6.589 62.253) 1.093.3 Provision against other assets Opening balance Charge for the year Reversals Provision against other assets transferred from amalgamated entity Closing balance 15 BILLS PAYABLE In Pakistan Outside Pakistan 16 BORROWINGS In Pakistan Outside Pakistan 3.263 1.108.024 38.696.313.777 58.696.6 16.under export refinance scheme .NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.300.7 16.560 1.060.3 16.5 16.407 7.986 3.561 221.633.302 789.Part I and II .877 39.875.640.2 Details of borrowings secured / unsecured Secured Borrowings from the State Bank of Pakistan .602.8 12.859 34.290.986 39.601 2010 2.642 39.248) 881.828 (40.828 2.454 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .327 1.076 34.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 16.904 16.under scheme for long term financing for export oriented projects .733 10.248.635.000 120.578.307.263 39.075.941 (57.109 118.577 107 16.942) 224.528.927 282.723 14.635.(LTF-EOP) .681.218.Agri Finance (Flood affected) .926 101.420.986 7.109 118. 2 The movement of prepaid staff benefits is as follows Prepaid employee benefits acquired / at beginning of the year Employee benefits expensed during the year Prepaid employee benefits at the end of the year 14.575 Note 2011 Rupees ‘000 2.1 Market value of non-banking assets acquired in satisfaction of claims .232.627 3.578 1.

90% per annum (2010: 12. As per the agreement.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. As per the terms of the agreement.3 In accordance with the ERF scheme. 16. 16. As per the agreement.75% to 13. Borrowing from the SBP under the export refinance scheme is secured by the Bank's cash and security balances held by the SBP.7 These represent borrowings from the SBP under scheme of Financing Facility For Storage of Agricultural produce at rates ranging from 5. made at rates ranging from 10.80% per annum). with maturities upto December 2018. 16.5% per annum markup payable on half yearly basis and maturities upto May 2018.5% to 9% per annum) payable on quarterly basis with maturities upto 180 days from the date of borrowing. the Bank has entered into agreements for financing with the SBP for extending export finance to customers. the Bank has granted the SBP a right to recover the outstanding amount from the Bank at the maturity dates of finances by directly debiting the current account of the Bank maintained with the SBP. The mark-up rate on this facility is 10% per annum (2010: 7.57% to 11.5 These represent borrowings from the SBP under scheme for Long Term Financing facility at rates ranging from 6. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .50% per annum) maturing up to January 2012.5% to 6.5% to 11% per annum (2010: 6. the Bank has granted SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with the SBP. the Bank has granted the SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with the SBP. 16. 2011 108 16. As per the agreement. the Bank has granted the SBP a right to recover the outstanding amount from the Bank at the respective date of maturity of finances by directly debiting the current account of the Bank maintained with the SBP. the Bank has granted the SBP the right to recover the outstanding amount from the Bank at the date of maturity of the finance by directly debiting the current account maintained by the Bank with the SBP. As per the terms of the agreement.50% to 8.9 These borrowings are from institutions in the interbank market.75% per annum (2010: 12. 16.6 These represent borrowings from the SBP under scheme for Revival of SME and Agricultural Activities in Flood Affected Areas at 5% per annum markup payable on quarterly or half yearly basis with maturities upto December 2012.4 These represent borrowings from the SBP under scheme for Long Term Financing for Export Oriented Projects at 5% per annum (2010: 4% to 5% per annum) with maturities upto December 2016.8 This represents collateralized borrowings against market treasury bills at rates ranging from 11.75% per annum) maturing upto January 2012.50% to 13.75% to 11. 16.

315.937.607.208.670.886 19.364.516 57.315.472.242 317.204 17.731 175.540 .677.120 2010 Financial Institutions Remunerative deposits Non-remunerative deposits 10.471 39.611 214.614.050 61.318 195. 2011 17 DEPOSITS AND OTHER ACCOUNTS 109 2011 Rupees ‘000 Customers Fixed deposits Saving deposits Current accounts – Remunerative Current accounts – Non-remunerative Margin accounts 96.322 2.512 727.032 10.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.237.422 5.1 Particulars of deposits In local currency In foreign currencies 195.525.731 5.285 29.094 214.614.710.673 2.789.142.579 227.707.153.061 189.143.637 19.714 47.056 203.664 195.531.405.204 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 86.204.

Subordination The TFCs are subordinated to all other indebtedness of the Bank including deposits. The Base Rate is defined as the ask side of six months Karachi Inter bank Offered Rate (KIBOR) prevailing on the base rate setting date. 2011 110 18 SUB-ORDINATED LOANS This represents rated and un-secured Term Finance Certificates (TFCs).25% The Base Rate is defined as the ask side of six months Karachi Inter bank Offered Rate (KIBOR) prevailing on the base rate setting date. 998. The TFCs are subordinated to all other indebtedness of the Bank including deposits. February 2005 8 years from the date of issue.8 million (carrying value Rs 596. Rs.595.000 million “AA-” (Double A Minus) by JCR-VIS Unlisted Base Rate Plus 2. 3.000 Particulars Outstanding amount TFC ( issue date: 12-11-2007) Rs. 2.8 million (2010: Rs 3.395.800.4 million (2010: Rs 998. October 2010 7 years from the date of issue.800.6 million)) Rs.395 4.197 4.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.40% The Base Rate is defined as the ask side of six months Karachi Inter bank Offered Rate (KIBOR) prevailing on the base rate setting date.998.000 million “AA-” (Double A Minus) by JCR-VIS Listed Base Rate Plus 1. 399.8 million) TFC ( issue date: 27-12-2010) Rs.90%. November 2007 7 years from the date of issue.2 million (carrying value Rs 398 million) (2010: Rs 598. 800 million “Rated A” (Single A) by PACRA Listed Base Rate Plus 1.000 4. Issue amount Rating Listing Rate Rs.000 million) TFC ( issue date: 10-02-2005) Rs. 1. The salient features of the issues are as follows: 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Rupees '000 Outstanding amount Total issue amount 4. Date of issue Tenure and maturity . The TFCs are subordinated to all other indebtedness of the Bank including deposits.

000.000.334. 10 each 2011 Rupees '000 12.841 504.1 Authorised Share capital 2011 2010 Number of shares 1.3 19.731 48.791 2010 19 OTHER LIABILITIES Mark-up / return payable in local currency Mark-up / return payable in foreign currencies Unearned commission / income Accrued expenses Taxation (provisions less payments) Unclaimed dividends Branch adjustment account Unrealised loss on revaluation of forward foreign exchange contracts Fair value of derivative contracts Withholding tax payable Federal Excise Duty payable Security deposits against finance leases Payable to brokers against purchase of shares Others 24.000 12.382.200.928.315 489.475 32.237.768 6.000.1 This represents interest free security deposits received from lessees against lease contracts and are adjustable against residual value of leased assets at the expiry of the respective lease terms.876 24.626 56.216 13.733 253.610.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 2011 111 Particulars Principal Repayment TFC ( issue date: 12-11-2007) Semi annually as follows: 0.95% starting from 66th month.20% of principal in first 60 months and remaining principal in four semi-annual installments of 24.123 105.260 2.000 39.000 1.756 64. 2011 Rupees '000 3. Note TFC ( issue date: 10-02-2005) In 4 equal annual installments starting from 60th month from the date of issue.000.20% of principal in first 60 months and remaining principal in four semi-annual installments of 24. Profit is payable semi-annually in arrears.083.000 Ordinary shares of Rs. TFC ( issue date: 27-12-2010) Semi annually as follows: 0.560 1.984 2.037.405.847 2. SHARE CAPITAL 20 20.451 1.830 11.000 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .111 2.180 868. Profit is payable semi-annually in arrears.200. Profit Payment Profit is payable semi-annually in arrears.300 57.95% starting from 66th month.572.406.1 19.094 3.129 918 321.330.139 2.750 16.

1 Appropriations are made to statutory reserve as required by section 21 of the Banking Companies Ordinance.882 174.952 3.2 23.014. at the rate 20% of profit after tax for the year.131 23.649 2010 4.451.290.980 156.902 18.388.722 8. (the ultimate holding company of the Bank) through its subsidiaries and nominees held 550.000 730.311. 1962. subscribed and paid-up capital 2011 Number of Shares FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Ordinary shares 2011 Rupees ‘000 2010 201.472.309.146 7.306 ordinary shares of Rs.372 Fully paid in cash Issued as bonus shares Issued on amalgamation 2.131 3.309.226 824.688 21.590 21.299.094 915.451.118 2.514 6.gain on bargain purchase 21.909.952 10. 20. 2011 Bonus shares issued during the year Shares issued on amalgamation Closing balance at December 31.514 5.797.C.014.154 17.031.800 Rupees ‘000 7.420 605.122 8.311.660. 2011 112 20.591.1 2011 Rupees ‘000 3.202 1.243.952 15.137.169. 2011.3 As at December 31.S. 2011 730.243.226 824.354.2 Issued.420 513.094 20.399 6.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Ithmaar Bank B.600 7.941 ordinary shares).372 91. 10 each (2010: 489. subscribed and paid-up capital during the year is as follows: Number of shares Opening balance at January 1.909.387.800 201.452.118 Note 21 RESERVES Statutory reserve Capital reserve Reserve arising on amalgamation Share premium Non-Distributable Capital Reserve .812.4 The movement in the issued.053. .590.

Accordingly. As the SBP has not finalised its inspection so far.108) (125.2 Surplus / (deficit) on available for sale securities Federal Government Securities .934) (399.3 2.950) (22.400) 113.891) 1.Listed companies / modarabas / mutual funds Fully Paid up Preference Shares .108) 22.419.860 (230.747 million (net of tax) has been adjusted against this reserve.402) 39.114 (22.Ijara Sukuk Bonds Fully Paid up Ordinary Shares / Modaraba Certificates / Units of Closed end Mutual Funds .918.752) 28. gain arising on bargain purchase of Pakistan operation of Royal Bank of Scotland (RBS Pakistan) was credited directly into equity as Non-Distributable Capital Reserve.495 (86. this amount is currently not available for distribution.108) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .954) (547.400) 1.132 (498.023 (521.007 (35.732 (125.Listed companies Term Finance Certificates . Note 22 SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS .Market Treasury Bills .440.132 - 22.259 (125.Pakistan Investment Bonds . 2011 113 21.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.968 (8. The directives of SBP further specified that any subsequent provision / deficit identified by the Banking Inspection Department (BID) of SBP in the acquired portfolio of RBS Pakistan will be adjusted against this reserve.340) (742.NET OF TAX Surplus / (deficit) arising on revaluation of: .2 1. amortisation of intangible asset during the current year amounting to Rs 129.868) 244.468 (498.Fixed assets . The SBP allowed the Bank the option to adjust amortisation of intangible asset against the portion of reserve which arose on account of such asset.990) (360.367) 105.091) (48.440.Available for sale securities 2011 Rupees ‘000 2010 22.Listed Units of Open ended Mutual Funds Related deferred tax asset 156.023 2.1 Surplus on revaluation of fixed assets Surplus on revaluation of fixed assets at January 1 Surplus on revaluation of fixed assets recognised during the year Related deferred tax liability on surplus 12.918.266) 221. 2011.2 As per the directive of the State Bank of Pakistan (SBP) vide letter BPRD (R&P -02)/625-99/2011/3744 dated March 28. The balance amount of reserve after incorporation of such adjustment as identified by BID and amortisation of intangible asset will be available for distribution only as stock dividend and after the prior approval of the SBP.1 22.

957 9.633. management is confident that the matter will be decided in Bank’s favour.875.011 3.938.2 Transaction-related contingent liabilities Contingent liability in respect of performance bonds.727 4.000 457.976.558 10.275 3.767 18.875.227 7.850 1.244 14.961.391.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.4 Other Contingencies i) Suit filed by a customer for recovery of alleged losses suffered which is pending in the High Court of Sindh.500.299 million in respect of a suit filed against the Bank for declaration.957 3.217 2.3 Trade-related contingent liabilities Letters of credit i) Government ii) Banking companies and other financial institutions iii) Others 23.543 26. rendition of account and damages.659.461.045 1.795 3.748. release of securities.996 ii) Indemnity issued favouring the High Court in the above case iii) Claims against the Bank not acknowledged as debt The above includes an amount of Rs 25.547 14.774. recovery of monies. shipping guarantees and standby letters of credit etc.959.968.275 9.810.465 11.1 CONTINGENCIES AND COMMITMENTS Direct credit substitutes Contingent liability in respect of guarantees favouring: i) Government ii) Banking companies and other financial institutions iii) Others Acceptances i) Government ii) Banking companies and other financial institutions iii) Others 23.619.648 2.032 1.275 833. favouring: i) Government ii) Banking companies and other financial institutions iii) Others 23.770 837.659 13. Based on legal advice.893.659. .067.000 457.543 32.650.476 2. 2011 114 23 23.500. bid bonds. The Bank s legal advisors are confident that the Bank has a strong case 2011 Rupees ‘000 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 3.431.603 24.850 10.

586 1.112.880 24. The additional tax liability on these matters is Rs 2. 23.402 24.460 271.320 23.230 421.Customers . These include disallowance on certain matters that include initial depreciation on leases. 2011 Rupees ‘000 23.126. The Bank and the department have filed appeals with the CIT (Appeals).708 53.327 5. excess perquisites and certain other allocation of expenses matters.536 5. bad debts written off.327 82.108 23.699.503.367 26.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.224.6 Commitments in respect of forward exchange contracts Purchase .656 23.890 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .Customers .231.9 Other Commitments Interest rate swaps and cross currency swaps (notional principal) 39.741.244. ITAT and the High Court in the aforementioned matters.948.110 million.043. The department and the Bank have disagreements on various matters for tax years from 1994 to 2011.861 147.7 23. The management of the Bank is confident that the decision in respect of these matters will be decided in the Bank’s favour and accordingly no provision has been made in these financial statements in respect of this liability.8 Commitments for the acquisition of operating fixed assets Commitments in respect of repo transactions Repurchase Resale 21.Banks 2010 1.898. 2011 115 iv) Income tax assessments of the Bank have been finalised upto the tax year 2011 (Accounting year 2010).792.Banks Sale .437 6.5 Commitments in respect of forward lending / purchase The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.224. taxability of dividend.010.769 289.424 6. provision for bad debts.781 10.288.

market risks and other risks associated with a transaction or area of activity and assigns limits within which the transaction / area of activity can be carried out. 2011 116 24 DERIVATIVE INSTRUMENTS Derivatives instruments. Risk management reviews credit risks. interest rates. The management of risks includes the following primary components: Comprehensive risk measurement approach. These measures are calculated through the relevant systems. There are two types of credit risk associated with derivatives transactions. These measures involve extreme shifts in a variety of parameters. Risk Management sets the policies and limits for counterparty risk based on a pre-defined criteria linked with the internal risk rating of the customer. Liquidity risk Liquidity risk is managed as part of the overall liquidity risk of the Bank. and 2) pre-settlement risk. limits and periodic reviews rests with Board of Directors. are forward transactions that provides a hedge against the adverse movement of interest and exchange rates. 1) settlement. The risk management policies are governed by regulatory and internal guidelines. Detailed structure of limits. Interest Rate Swaps. monitoring and reporting risks. Market risk The risk that the value of a derivative contract will be adversely affected by movements in equity prices. such as FX rates. interest rates. which need to be monitored and assessed. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 24. Credit risk The risk that a party to a derivative contract will fail to perform its obligation. such as Forward Rate Agreement. guidelines and other parameters used to govern risk taking. Major risks associated with derivative instruments are market risk and credit risk. . All Derivative transactions are governed by the Financial Derivatives Business Regulations (FDBR) issued by the State Bank of Pakistan (SBP). Adherence to these limits is ensured through independent monitoring and control functions. Derivatives business provides risk solutions for the existing and potential customers of the Bank. There are a number of risks undertaken by the Bank. Cross Currency Swaps and FX Options.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.1 Derivative Risk Management The Bank’s derivatives risk management function is an independent unit reporting into the Chief Risk Officer. and Strong management information system for controlling. equity prices. The Bank uses state of the art system to measure and manage these risks which provides end-to-end capability with respect to transaction life cycle. implied volatility levels and combinations of the above. The authority for approving policies. currency exchange rates and commodity prices. These risks are monitored on a daily basis. The critical measures used to manage market risks are Interest Rate Delta. Currency Delta Basis and Value-at-Risk.

291 8.193.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. of Contracts Notional Principal Rupees '000 21 - 15.741.2 Product Analysis 2011 Interest Rate and Cross Currency Swaps No.215.405.581 1.193.850 24.573 53.707 36 77 113 20. of Contracts Notional Principal Mark to Market Negative Rupees '000 Upto 1 month 1 to 3 months 3 to 6 months 6 months to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years 5 to 10 years 5 4 14 44 17 2 86 1.802.231.850 - 36 - 20.927.649.927.857 39.304.386.424) (1.733) 16. of Contracts Counterparties With Banks for Hedging Market Making With other entities for Hedging Market Making Total Hedging Market Making Notional Principal Rupees '000 2010 Interest Rate and Cross Currency Swaps No.380 39.390) (27.103 5.431.708 (131.528) (41.390) (27.547.317) (3.890 24.317 - 65 24.3 Maturity Analysis Interest Rate Swaps and Cross Currency Swaps 2011 Remaining Maturity No.818 173.613) (1.547.462 (2.584 7.741.017.368.357 577.462 1.304.311.317 32.857 77 32.598.573 21 65 86 15.461 1.885) (2.510) (1. 2011 117 24.123) Positive Net FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .210.610 (131.733) 7.281 27.528) (25.397.

179.908 81.395.930 6.892) (2.253 28.824) (434.128 35. 2011 the fair value of derivative financial instruments has been determined using valuation techniques with significant inputs such as forecasted market interest rate and foreign exchange rate.141 261.449 84.805 54.992 129.687 12.339 1.780 (84.370 70.822 1.957) (257.4 As at December 31.069.710.160.499 110.626) 24.267) (1.746.723.500) (334.291.240.890 (84.406) 6.417 332.543 76.231. 2011 Rupees ‘000 25 MARK-UP / RETURN / INTEREST EARNED a) On financing to: i) customers ii) financial institutions b) On investments in: i) held for trading securities ii) available for sale securities iii) held to maturity securities c) On deposits with treasury bank and financial institutions d) On securities purchased under resale agreements e) On call money lending 2010 20. Any significant change in these key assumptions may have an effect on the fair value of these derivative financial instruments.827.232 13.222 1.454) (363.027) (3.259) (1.239) (1.544. 2011 118 Remaining Maturity No. The determination of the fair value of these instruments is most sensitive to these key assumptions.019 52.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.334.889 3.771. of Contracts FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Notional Principal Mark to Market Negative Rupees '000 Positive Net Upto 1 month 1 to 3 months 3 to 6 months 6 months to 1 Year 1 to 2 Years 2 to 3 Years 3 to 5 Years 5 to 10 years 3 2 25 23 43 17 113 956.548.042 31.608 207.890 53.419.825.774 4.653 1.460 .682) (30.390 19.904.249) (5.162.521 4.955.020.682) (36.505 34.

213 (223.289 890.627 8.862 4.086 76.982 610.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.Pakistan Investment Bonds .682.964 1.879 16.764 50.971 (699.256 2010 27 GAIN / (LOSS) ON SALE OF SECURITIES Federal Government Securities .969 1.127 262.794 262.061 1.414.817 28 OTHER INCOME Rent on property Maintenance charges on property rented Net profit on disposal of property and equipment Income on interest rate and cross currency derivative contracts Others 84.303 1.251 19.671 (255.339.095 10.249 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .093 8.141.426.263.709 455.849) 1.Ijara Sukuk Bonds Fully Paid up Ordinary Shares / Modaraba Certificates / Units of Closed end Mutual Funds Units of Open end Mutual Funds 215.380.412 13.Market Treasury Bills .540.158 32.301 641.577 133.521 28.778 19.708. 2011 119 26 MARK-UP / RETURN / INTEREST EXPENSED 2011 Rupees ‘000 Deposits Securities sold under repurchase agreements Other short term borrowings SBP borrowings Long term borrowings Sub-ordinated loans 14.619.978) 9.919.024 1.933 814.028 1.731 690.477) 168.859 4.

072 29.000 11.248 million (2010: Rs 40.718 23.458 62.477 120. Donations made during the year were as follows: Donee The Citizens Foundation Karachi Relief Trust Flood Relief affectees supply of Hampers Prime Minister’s Flood Relief Fund District Government Bahawalpur Institute of Business Administration (IBA) Waqf Faisal (Trust) . allowances and other employee benefits Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors’ fees Rent.4 29.311 22.314 784.264 1.171 10.358 633.815 112.919 2.816 123.000 24.323 275.047.920.436 8.617 10.250 131.431 146.270 75.373 75.257 89. 2011 120 Note 29 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2011 Rupees ‘000 2010 ADMINISTRATIVE EXPENSES Salaries.106 40 1.000 9.932 244.302 1.880.595 40.584 176.552 759.636. electricity.1 4.2 29.700 216.2 This includes charge amounting to Rs 311.463 101.849 86.838 66. conveyance and entertainment Vehicle running expenses Books.341 10.267 23.436 Directors or their spouse have no interest in any of the donee other than Waqf Faisal (Trust) where the President and CEO of the Bank is the managing trustee.644.1 29.228 6. insurance.116 1.496 211.251 112.631 157. Legal and professional charges Communications Repairs and maintenance Stationery and printing Advertisement and publicity Donations Auditors’ remuneration Depreciation Amortisation License and technical fee Travelling. taxes.253 million) in respect of fair valuation of staff loans.3 12. . periodicals and subscription Brokerage and commission Others 29.538 242.991 113. etc.049 192.106 16.813.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.671 660.211 106.079 64.953 139.This is a charitable public welfare project 30.781 75.632 568.2 12.653 25 10.

283) (59.340 712 400 16.879 21.332 (83.690) (229.267) 197.016 68.178 64.709) (363.054 289.500 400 46 3.permanent differences .300 475 350 8.469 11.117 16.947) (363.795 827.950 600 50 7.275) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.prior year reversal .062 289.858 38. 2011 121 29.003) (133.522 (135.016 (348.795 239.815 31 TAXATION For the year Current Deferred For prior years Current Deferred 392.469 10.3 Auditors’ remuneration 2011 Rupees '000 Statutory audit fee Fee for quarterly and annual group reporting Fee for the review of the half yearly financial statements Fee for the provident and gratuity funds Tax services Special certifications and sundry advisory services Out-of-pocket expenses 2.478.income chargeable to tax at reduced rate .250 4.915 (493.479) (153.003) (59.788) 197.600 2.803 19.others Tax charge for the year 1.091 517.302 1.267) (23.460) 257.275) 31.433 24.124 (468.566) 191.445) (133.671 2010 30 OTHER CHARGES Penalties imposed by the State Bank of Pakistan Workers’ Welfare Fund Fixed assets written off Others 1.736 (325.709) (36.1 Relationship between tax expense and accounting profit Profit before tax Tax calculated at the rate of 35% (2010: 35%) Effect of: .

547 35 3.428.1 35 35.582 2.190. The benefits under the gratuity scheme are payable on retirement at the age of 60 years or earlier cessation of service in lump sum.45 32.909 (6.280.007 6.1 3.basic 1.150.1 Diluted earnings per share has not been presented as the Bank does not have any convertible instruments in issue at December 31.287 5.445.273 Earnings per share .442 3. The benefit is equal to one month’s last drawn basic salary for each year of eligible service or part thereof.1 Outsourced staff represent employees hired by an outside contractor / agency and posted in the Bank to perform various tasks / activities of the Bank.416 19 3.685. In the case of other members of the Fund the minimum qualifying eligible service is 5 years.296 Weighted average number of ordinary shares outstanding during the year 824. The latest actuarial valuation of the Bank’s defined benefit plan based on Projected Unit Credit Actuarial Cost Method was carried out as at December 31. 2011 122 32 EARNINGS PER SHARE 2011 Rupees ‘000 Profit after tax for the year FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 1.718 (120.312 Rupees 822.727.426 2010 33 CASH AND CASH EQUIVALENTS Cash and balance with treasury banks Balances with other banks Overdrawn nostros 34 STAFF STRENGTH Permanent Temporary / on contractual basis Bank’s own staff strength at the end of the year Outsourced Total Staff Strength 34.435 3.407) 23. 2011. The minimum qualifying eligible service for gratuity is 1 year for employees who became members of the Fund before November 12.2 18.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.563 17. 2002. The minimum qualifying eligible service for contractual employees not employed under the management cadre is 6 months. Note 2011 Rupees ‘000 8 9 16.010.263) 23. 2011 and December 31.108 4. .869 34. DEFINED BENEFIT PLAN General description The Bank operates an approved funded gratuity scheme for all its permanent employees and employees who are on contractual service in non-management cadre. 2010 which would have any effect on the earnings per share if the option to convert is exercised.329 In thousands 1.55 1.924 5.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.5.002 3.523) (19.5 374.945 229.2 Principal actuarial assumptions Note Discount factor used (% per annum) Expected long term rate of return on plan assets (% per annum) Expected rate of salary increase (% per annum) Normal retirement age (years) 2011 13.961 59.657) (353) 277.945 (368.562 7.0 60 2011 Rupees ‘000 35.286 245. 2011 123 35.354) 374.221) (350) 2010 14.229 (24.1 Plan assets consist of the following: Balances with banks and financial institutions Units of open ended mutual funds Term finance certificates Government securities 3.5 60 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .5 14.157 111.508) 368.641 155.354) (15.884 70.620 (19.304 (6.641 168.641) 6.4 35.3 Reconciliation of receivable from defined benefit plan Present value of defined benefit obligations Fair value of plan assets Net actuarial loss not recognized 35.157 (245.135 24.0 13.277 245.971 361.5 Movement in fair value of plan assets Opening balance Expected return on plan assets Contribution made Benefits paid by the fund (Loss) / gain on plan assets Closing balance 35.286) 31.668 368.924) (21.286 39.157 35.261 120.5 14.830 (38.630) 277.4 Movement in present value of defined benefit obligation Opening balance Current service cost Interest cost Gain on defined benefit obligation Actual benefits paid during the year Closing balance 35.871 (32.630) 1.0 13.286 277.120 32.956 (21.428 82.236 46.296 245.

8 35.277 (229.928) (5.884) 4.774) (30.826) (6.477) (123.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.953 37.141) 97.124) 64 2008 2007 (167.871) 24.739 (25.402) (2. 2011 124 35. .953 (120.7 35. The financial statements of the fund are separately prepared and audited and are not included as part of these financial statements.7 Charge for defined benefit plan Current service cost Interest cost Expected return on plan assets Amortization of loss 111.961) 168.144 70.157) 245.236 46.641 (6.304) 38.655 (350) 120.261) 2.9 Actual return on plan assets Historical information 2011 2010 2009 Rupees '000 Defined benefit obligation Fair value of plan assets Deficit Experience adjustments on plan liabilities Experience adjustments on plan assets (374.148 120.135 (61.351 (59.745) 36 DEFINED CONTRIBUTION PLAN The Bank operates an approved funded contributory provident fund for all its permanent employees to which equal monthly contributions are made both by the Bank and the employees at the rate of 10% of basic salary.120 32.6 Movement in amount receivable from defined benefit plan Note 2011 Rupees ‘000 Opening balance Charge for the year Contribution to fund made during the year Closing balance 35.523 1.956) (353) (339) 70.609 26.818) (2.380 59.229 (24.609 (70.945) 368.286 (31.125) 107.620) (350) 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 35.924 (15.830 (39.508) (277.

264 40. the Chief Executive and certain Executives are provided with free use of the Bank s maintained cars.314 7 746.264 7 10.629 770 764. .080 57. 2011 125 37 COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Executive Officer 2011 2010 2011 Directors 2010 Rupees '000 2011 Executives 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Managerial remuneration (including bonus) Fees Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Medical Leave fare assistance Others 173.653 53.556 112.345 66.645 736 189 1.068 71.345 789 Number of persons 37.086 2.882 3.459 1. In addition to the above.969 821.310. other than the chief executive and directors. whose basic salary exceeds five hundred thousand rupees in a financial year.911 363.041 75.412.314 10.956 1.029 50.556 852 201 523 188.377 27.554 800 2.297 9.957 133.837 1 22.2 Executives mean employees.264 22.423 211.322 48.391 213.1 37.311 1 125.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.

750 3.204 4.320 The carrying value of traded investments is based on quoted market price.5 to these financial statements.549 133. The provision for impairment of advances has been calculated in accordance with the Bank’s accounting policy as stated in note 7.218.896 3.614.924 5.699.428.982 249.445.161.328 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 3.747.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.498.718 93.781 24.395.409.909 86. .224.674 17.995 7.685.657.14 dated September 24. 2011 126 38 FAIR VALUE OF FINANCIAL INSTRUMENTS Book Value 2011 2010 Rupees '000 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Fair Value 2011 2010 On-balance sheet financial instruments Assets Cash balances with treasury banks Balances with other banks Investments Advances Other assets 18.986 214.755.053.108 4.327 421.685.657.215.614.224.718 93.053. other liabilities and fixed term deposits cannot be calculated with sufficient reliability due to absence of current and active market for assets and liabilities and reliable data regarding market rates for similar instruments.696.747.731 4.204 4.534 250.642 39.995 7.133 18.666 271.197 8. except for marketable securities classified as ’held to maturity’.305 17.288.288.896 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward agreements for borrowings Forward sale of foreign exchange Forward agreements for lending 26.395 12.197 8.075.769 6.769 21.327 421.818 148.187 148.110.948.727.010.395 12.750 3. 2004.769 21.706.706.965.948.215.965.536 10. Fair value of unquoted equity investments is determined on the basis of break-up value of these investments as per the latest audited financial statements.030.194 270.666 271.744 133.909 86.320 26.635.418.904 195.699.395.595.230 5.982 249.595.892.534 250.696.861 271.075.218.230 5. These securities are carried at amortised cost in order to comply with the requirements of BSD circular No.315.445.536 10.727.731 4.904 195.792.892.253. other assets.792.859 34.642 39.861 271.781 24. Fair value of fixed term advances.108 4.161.600.924 5.428.986 214.315.460 6.859 34.635.769 6.460 6.194 270.010.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.7). The fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since assets and liabilities are either short term in nature or in the case of customer advances and deposits.6 and 44. Estimates and judgements are continually evaluated and are based on historical experience. It also requires the management to exercise its judgement in the process of applying the Bank’s accounting policies.Corporate Finance .Corporate & Commercial Banking All assets. 13 and 31). off balance sheet items and items of income and expense are distributed in primary segments in accordance with the core functions performed by the business groups.4 and 10). The significant accounting areas where various assumptions and estimates are significant to the Bank’s financial statements or where judgement was exercised in application of the accounting policies are as follows: i) ii) iii) iv) v) vi) vii) classification and provisioning against investments (notes 7. income taxes (notes 7. accounting for defined benefit plan (notes 7. including expectations of future events that are believed to be reasonable under the circumstances.18 and 24) impairment of intangible assets (note 7.Retail Banking and .11 and 35). liabilities. . FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 39 ACCOUNTING ESTIMATES AND JUDGMENTS The preparation of financial statements in conformity with the approved accounting standards requires the use of certain critical accounting estimates.5 and 11). are regularly repriced.7. 2011 127 The repricing profile and effective rates and maturity are stated in note 44.8. fair value of derivative financial instruments (notes 7. 40 SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES Primary segment information For management purposes the Bank is organised into four major business segments: .6 and 12). classification and provisioning against advances (notes 7.Trading and Sales .1 respectively. depreciation / amortisation of operating fixed assets (notes 7.

497.70% 312.973) (1.967.017.66% 61.685 (6.45% December 31.994) - 93.514) 3.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.091 Segment assets (Gross) Segment non performing loans Segment provision required against loans Segment liabilities Segment return on assets (ROA) (%) * (13.372.161) (45.811. 2010 Total income .439 (924.42% 140.547.094 9.220) - 91.542 (8.742.30% 7.707.038.149 (11.069.302) 1.044.936.942.322 14.984 (2.932.239) (1.726 1.03% 7.36% 54.423) (49.643.604 8.798.297) 1.671 1.758 (17.115 (796.137.20% 11.142.500.286.134 13.043 5.744 24.623.305) 2.054 Segment assets (Gross) Segment non performing loans Segment provision required against loans Segment liabilities Segment return on assets (ROA) (%) Segment cost of funds (%) (21.043.442.153) * These percentages have been computed based on average balances.138.912.459 (5.359) 520.624 9.245) (30.063.499.488) 827.805.454.461.437.316) 126.218 4.507.965) 2.921 (10.963 (523.354.042 (81.897) 1.835.976.280 (35.848 20.924 (48.099.803.321.net Total expenses Net income / (loss) 187.241.478.119 (17.85% 157.723 (11.926 (2.65% 13.171 26.net Total expenses Net income / (loss) 208.640) (250.035.323) 0.667) Segment cost of funds (%) * - 13. 2011 128 Coporate Finance Trading & Sales Retail Banking Corporate & Commercial Banking Total Rupees'000 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 December 31.803.632) 1.308.06% 286.174) (191.645) 2. 2011 Total income .90% 7.335) (273.135 (15.972) (170. .276.603.987) 4.536.328 670.729) 145.309.400 (41.318) 3.389) 0.

279 (1.140 533.110. except transaction with directors and key management personnel that are as per their terms of employment. Banking transactions with the related parties are executed substantially on the same terms.003.336 (1.363 1. associated undertaking.478.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.667 (16.645.963) 29.164) 105. key management personnel and entities over which the directors or key management personnel are able to exercise significant influence. it acts as security agent for various Term Finance Certificates it arranges and distributes on behalf of its customers.10. as those prevailing at the time of comparable transactions with unrelated parties and do not involve more than a normal risk.955) 12. subsidiary company. directors.741.788 5.456 (410.007 (4.189) 40.555 .266 - - - 2. group companies. including mark-up rates and collateral.087) 2.713. Such remuneration is determined in accordance with the terms of their employment. 35 and 36 to these financial statements for the details of the plans).795) 3. 2011 41 TRUST ACTIVITIES The Bank is not engaged in any significant trust activities.094. partners or in case of private companies as members and loans to executives are given in note 11.448 2. Remuneration to executives (including key management personnel) of the Bank is disclosed in note 37 to these financial statements.132.9 to these financial statements. However.884 53.871 50.537 1.816. 42 RELATED PARTY TRANSACTIONS The Bank has related party relationship with its holding company. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 129 2011 Directors and key management personnel Retirement Benefit Plans Group Companies (including associated undertakings) Subsidiary Associate Rupees '000 Deposits Balance at the beginning of the year Placements during the year Withdrawals during the year Balance at end of the year Advances Balance at the beginning of the year Disbursements during the year Repayments during the year Balance at end of the year 77. Contributions to and accruals in respect of retirement benefit plans are made in accordance with the actuarial valuations / terms of contribution plan (refer notes 7.365 1. Details of advances to the companies or firms in which the directors of the Bank are interested as directors.499.854.500 492 500 (512) 480 479 413. retirement benefit plans.950 (54.

535.816.367 2.357) 492 399 249.384) 61.295 (44.485 662.779 (740.884 33.473 50.000 (148.208.478) 646.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.363 Balances pertaining to parties that were related at the beginning of the year but ceased to be so related during any part of the current period are not reflected as part of the closing balance.024) 533.969 77.788 - - - 802.576 6.613 42.295 (686.558 2.860.113) 2.859) 479 2.645.003 (1.918 (2.448 188.070 552.417. The same are accounted for through the movement presented above. 2011 130 Directors and key management personnel FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Retirement Benefit Plans Group Companies (including associated undertakings) Subsidiary Associate Rupees '000 Deposits Balance at the beginning of the year Placements during the year Withdrawals during the year Balance arises upon amalgamation Balance at end of the year Advances Balance at the beginning of the year Disbursements during the year Repayments during the year Balance arises upon amalgamation Balance at end of the year 39.015.939 (249.768.556 1.365 350.261) 159. .

370 386.875 1.749 2.322 49.854 52.804 114.251 39 254 2.264 2010 Directors and key management personnel Retirement Benefit Plans Group Companies 999 813 16.601 21.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.839 257.258 260.038.698 2. .397 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Subsidiary Associate Rupees '000 Nostro balances with group companies Shares / Units purchased during the year Shares / Units sold during the year Profit paid / accrued Profit return / earned Dividend income from subsidiary Remuneration of key management personnel . 2011 2011 Directors and key management personnel Retirement Benefit Plans Group Companies 131 Associate Subsidiary Rupees '000 Shares / Units purchased during the year Shares / Units sold during the year Profit paid / accrued Profit return / earned Dividend income from subsidiary / associate Remuneration of key management personnel .006 25.631 11.753 6.137 179.439 29.540.111 67.598 3.062 120.Salaries and other short-term employee benefits .727.Post-employment benefits Contribution to staff retirement benefits Guarantees issued favouring related parties or on their behalf 3.238 1.Salaries and other short-term employee benefits Post-employment benefits Contribution to staff retirement benefits Guarantees issued favouring related parties or on their behalf 2.000 - Disposal of vehicles to key management personnel and other executives is disclosed in Annexure IV to these financial statements.668 155.444 940.

The eligible capital to risk weighted assets ratio. 2011. The required minimum Capital Adequacy Ratio (CAR) is 10%. taking into account any eligible collateral or guarantees. 2006 and amendments made by State Bank of Pakistan through circulars. with some adjustments to reflect the more contingent nature of the potential losses. The Bank has adopted Standardized Approach for Credit and Market Risk and Basic Indicator Approach for Operational Risk. as implemented by the State Bank of Pakistan.1 CAPITAL . other intangible assets including software. Capital adequacy is regularly monitored by the Bank s management. market and operational risks associated with each asset and counterparty. The required information is submitted to the State Bank of Pakistan on quarterly basis. are deducted from Tier 1 capital whereas investments in associates and subsidiary as disclosed in Note 10. the State Bank of Pakistan has prescribed a minimum paid-up capital requirement (net of losses) of Rs. The State Bank of Pakistan requires each Bank or Banking group to: (a) hold the minimum level of the paid up capital and (b) maintain a ratio of total regulatory capital to the risk-weighted assets at or above the required minimum level of 10%. and c) maintains a strong capital base to support the development of its business. The Bank s regulatory capital is divided into three tiers: a) Tier 1 capital: share capital. b) safeguards the Bank s ability to continue as a going concern so that it can continue to provide returns for shareholders and benefits for other stakeholders.ASSESSMENT AND ADEQUACY BASEL II SPECIFIC Capital Management The objective of Capital Management is to ensure the Bank’s ability to operate as a going concern by maintaining appropriate capital base in line with minimum regulatory requirements. brand value etc.1 are deducted from Tier 1 and Tier 2 capital to arrive at the regulatory capital. The risk-weighted assets are measured by means of a hierarchy of five risk weights classified according to the nature of and reflecting an estimate of credit. employing techniques based on the guidelines developed by the Basel Committee. Bank has implemented and is operating under Basel II capital adequacy framework that applies to all Banks and DFIs as prescribed under SBP BSD Circular No. Vide BSD Circular No. calculated in accordance with the State Bank’s guidelines on capital adequacy is as follows:- FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . 8 dated June 27. 07 of 2009. retained earnings and reserves created by appropriations of retained earnings. The Bank will continue to maintain the required regulatory capital either through its risk management strategies or by increasing the capital requirements in line with the business and capital needs. 2011 132 43 43. b) Tier 2 capital: qualifying subordinated loan capital. A similar treatment is adopted for off balance sheet exposure. The Bank ensures that it: a) complies with the capital requirements set by the State Bank of Pakistan. and c) Tier 3 capital: the Bank has no eligible Tier 3 capital. general provision and unrealized gains arising on the fair valuation of equity instruments held as available for sale and surplus on revaluation of fixed assets. Book value of goodwill.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 8 billion for all Banks to be achieved by December 31.

959.642.878 1.491 76.427 43.669.131 6.545.688 1.204 77.918 336.500 4.500 2.118 10.991 18.094 28.354.5 & 43.970.110 Less: Book value of intangible assets Shortfall / relaxation in provision Deficit on account of revaluation of investments held in AFS category Other deductions (represents 50% of the majority or significant minority interest in subsidiaries and associates) Total Tier I Capital Tier II Capital Subordinated debt (upto 50% of total Tier 1 Capital) General provisions subject to 1.768 14.950.573 4.793.178 17.355 7.253 7.367 76.394.546 3.691 76.424.720 4.174.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.500 4.191 20.790.4 43.759 259.837.097.101 .072 15.25% of total Risk Weighted Assets Revaluation reserve (upto 45%) Less: Other deductions (represents 50% of the majority or significant minority interest in subsidiaries and associates) Total Tier II Capital Eligible Tier III Capital Total Regulatory Capital Base 3.643.2 Capital Structure Tier I Capital Share Capital Proposed shares to be issued on amalgamation Balance in share premium account Reserves Unappropriated profit FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Restated 133 8. 2011 Note 2011 Rupees’000 43.823.843 16.477.309.000 2.581.6 1.243.212 763.500.901 230.500 1.368 76.097.

4 The SBP through its letter BPRD (R&P-02)/625-99/2011/3744 dated March 28.768 10.851.421 152.717 1.177 1.995.508 211.877 3.692. 2011 has advised the Bank that the deduction of intangible assets.577 180.170 505.688 309.4 280.101 180.087.900 6.285.208 533.806.710 18.161 18.662 1.038 22.471 1.925.046.Rupees in ’000 --------------------------------Credit Risk Public sector enterprises Financial institutions Corporates Retail Past due loans Others Total Credit Risk Market Risk Capital requirement for portfolios subject to standardized approach Interest rate risk Equity position risk Foreign exchange risk Total Market Risk 814.773 128.157.564.649.877.550.435.460 8.602 86.687 5.919.643.637.545 55. Whereas.815 30.820 25.981 10.400.572.698 5. the portion of Deferred Tax Liabilities (DTL) created due to such intangible assets would not be netted against Deferred Tax Assets (DTA) for calculation of CAR.572.279 Operational Risk Capital requirement for operational risks Total Operational Risk Capital Adequacy Ratio 2.864 8. would be limited to the extent of the amount of the intangible recognised as negative goodwill / intangible gain.620 13.075 5.485 13.217 2.713 8.690 692.3 Capital Adequacy --------------------------------.981 Total eligible regulatory capital held Total risk weighted assets Capital adequacy ratio 43.636 89.877.363.196.338.5 10.31% 43.549 1. as appear under Tier-I capital.360 191.523 1.282.798 25.555 5.231 18.65% 43.546 191.054.640.936 19.098.942 146.885. .104 2.194.299.755.669 528.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.487.111.500.161 27. 2011 Capital Requirements 134 43.028 2.125 Risk Weighted Assets FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 43.2 20.243.084 2.058 18.146.819.348.594 14.042 15.782 2.461.150 306.550.394.927.

This calls for aligning strategic vision. and . As an ongoing exercise to integrate Risk related functions.4 to these financial statements. policy objectives and business processes/procedures with the Risk Management framework. Accordingly. systems and procedures to manage risk. However. With this in view. 43. 43.Well constituted organizational structure . The Risk Management framework includes: . the management has restated the CAR for the year ended December 31. 2011 43. The risk management framework at the Bank encompasses: . properly documented.368 million has been deducted from the Bank’s Tier-I Capital.7 The benefit of FSV allowed by the SBP has not been deducted from Tier I capital of the Bank based on a clarification issued by the SBP through its letter BSD/BAI1/220/452/2009 dated April 27. banks are required to deduct from Tier-I Capital any shortfall in provisions required against classified assets irrespective of any relaxation allowed by the SBP.Process. the SBP vide its letter No. This ensures that risks taken in pursuit of the Bank s strategic objectives are consistent with the desired return as well as the Bank s desired credit rating and risk appetite. 2011 clarified that the above mentioned relaxation will be effective from the date of relaxation granted by the SBP for maintaining provision against these customers.Mechanism for ongoing review of credit policies and procedures and risk exposures 135 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .5 In accordance with the Revised Regulatory Capital Framework under Basel II issued by the SBP.Roles and responsibilities of individuals involved in risk management. with ultimate adoption of/convergence towards Basel II guidelines on Risk Management. 2011 in line with relaxation already given for maintaining provisions against these entities. 2009 in accordance with section 1.3. and adequately monitored and managed in order to enhance long term earnings and to protect the interests of the Bank s depositors and shareholders. banks are required to deduct from Tier I Capital any shortfall in provisions required against classified assets irrespective of any relaxation allowed by the SBP. The primary objective of this architecture is to inculcate risk management into the organization flows to ensure that risks are accurately identified and assessed.6 As more fully disclosed in note 10. RMG has been expanded. an amount of Rs 77. The Bank has adopted an approach that gives an integrated view of the risks faced by the organization.Clearly defined risk management policies .Scope of risks to be managed . 2010. The management of risk is integrated with our management of capital and strategy. strengthened and entrusted to monitor the risk areas across the organization. approved. the Bank has not made deductions on account of shortfall in provision against outstanding facilities extended to Agritech.1 of the SBP Basel II guidelines. BSD/BAI3/615/5296/2011 dated April 26. It has been authorized by the Board of Directors (BOD) to monitor the implementation of various risk policies via implementation of an integrated risk management framework across the Bank. Azgard Nine and Dewan Group based on relaxation provided by SBP vide its letter No. the SBP has given a relaxation to the Bank in maintaining provision against outstanding facilities extended to Maple Leaf Cement Factory Limited. Further. In accordance with Revised Regulatory Capital Framework under Basel II issued by the SBP. the Risk Management framework endeavors to be a comprehensive and evolving guideline to cater to changing business dynamics. BSD/BAI/3/608/7356/2011 dated June 8. 44 RISK MANAGEMENT Risk Management Group (RMG) has been organized under the Chief Risk Officer (CRO).NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Accordingly.

market risk. Retail credit cycle and its scope include. . Risk Management) and Retail Risk Management. comprising of 5 Directors including the President & CEO.Conduct a thorough and independent due diligence of the proposed / existing exposures in the respective Risk portfolios. Collections and Recovery. Commercial Risk Management and Retail SME and Agri. cater to customer requirements.Effective Risk processes. 2011 136 The Risk Management framework is built on the following elements: . The essential components which contribute in effective management of all these Risks include and depend on: Active Board / Senior Management strategic direction and centralized RMG oversight Sufficient policies. Portfolio & Account Management. Credit Acquisition & Underwriting. mitigate and approve risk on a portfolio level.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. it is appointed and authorized by the BoD to assist in the design. Retail Risk Management is responsible for managing the entire retail credit cycle through the Retail Credit Policy and Analytics teams in line with the business strategy on various Key Performance Indicators (KPIs).Work with Business Units/ Relationship teams to structure exposures such that they mitigate key risks. . have been developed and stand effectively implemented at the Bank. The Risk Management architecture is further fostered by Enterprise Risk Management. regular evaluation and timely updating of the Risk Management framework. and to closely align its functions with Business. RMG has separate Risk functions for Credit Risk Management (Corporate Risk Management. Credit Administration and Risk Policy functions. liquidity risk. remain economical in terms of risk weighted assets/ capital allocation and result in maximization of overall returns from the relationship. including credit risk. . BRMC has further authorized management committees such as Country Credit Committee (CCC). capital management and operational risk. procedures and limits Adequate risk measurement. SBP PRs as well as internal policies. monitoring and management information systems Comprehensive internal controls The Board of Directors (BoD) monitoring and oversight is facilitated through the Board Risk Management Committee (BRMC).Comprehensive risk governance and . Product Planning.Work with Compliance to ensure conformity to the relevant Government regulations. Enterprise Risk Management Committee (ERMC) and Assets & Liabilities Committee (ALCO) to supervise risk management activities within their respective scopes. The common responsibilities of all three Credit Risk Management Units include: . In order to have an effective and efficient risk assessment. a comprehensive governance and management structure and processes surrounding each risk area. Retail Risk Management covers and operates on a Program lending approach to manage. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Based on the guidelines issued by the SBP and industry best practices.

To avoid risk concentration. The Bank has well-defined credit approval and review processes under which senior officers with the requisite credit background.Work with Business Units/ Relationship teams to structure exposures such that they mitigate key risks. The Bank s credit risk philosophy is based on the Bank s overall business strategy / direction as established by the Board. . The Bank manages customer credit risk exposures within appropriate limits to ensure that it does not provide a disproportionate level of credit to a single customer or group of connected clients. With a view to develop & effectively manage a diversified credit portfolio within each Business segment (as an integral part of the Credit Risk Management process). fully disclosed to the approving authorities and appropriately rated. . 44. or group of connected clients — to identify and manage effectively all significant credit risk exposures to a single customer connection within an individual business and. Risk concentration may arise where total exposure to a particular group or industry is high in relation to shareholders’ equity. these Industry concentration limits are continually overseen by the Management against the Bank s approved exposures in these sectors and reviewed by the Board Risk Management Committee (BRMC) in its quarterly meetings with an aim to monitor the overall risk and to avoid high exposure to a single group or industry. disbursement and post disbursement monitoring aspects of the credit portfolio.Risk Policy unit ensures formulation of synchronized and adhesive polices in conjunction with the Bank’s strategy and practices while adhering to the local and regulatory guidelines within Corporate. in order to quantify risks of counterparty. .NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. The common responsibilities of all three CRM Units include: . This also encompasses detailed review of macro risk factors. This credit risk arises mainly from both direct lending activities as well as contingent liabilities. NPL status and monitoring of internal credit rating models including model documentation and the coordination of analytics within the Enterprise Risk Management functionalities. Commercial Risk Management and Retail SME and Agri.Credit Administration Department looks after the security. 2011 .1 Segment by class of business Credit Risk Management (CRM) Framework covers three areas: Corporate Risk Management. The Bank deals with many different types of borrowers and borrowing structures across the wholesale and retail segments. Commercial.The Enterprise Risk Management function is responsible for managing and controlling Market. Risk Management. across other business segments.Conduct a thorough and independent due diligence of the proposed / existing exposures in the respective Risk portfolios.Work with Compliance to ensure conformity to the relevant Government regulations. critically scrutinize and sanction financing. As part of the Bank s Portfolio strategy and planning activity. respectively. 137 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . cater to customer requirements. also ensuring that the credit commitment is appropriately structured. remain economical in terms of risk weighted assets/ capital allocation and result in maximization of overall returns from the relationship. counterparty group limits and industry concentration limits are also established. Corporate. 44. industry and transaction analysis. the Bank has adopted the concept of an industry/ sector-wise exposure concentration grid which dictates target market exposures. loan documentation. Commercial and Retail business segments. SBP Prudential Regulations as well as internal policies.1 Credit Risk Credit risk is the identification of probability that counterparty will cause a financial loss to the Bank due to its inability or unwillingness to meet its contractual obligation. the credit evaluation also includes risk rating system to evaluate risk rating of the customers which is then monitored on a portfolio basis to gauge the Bank s credit portfolio quality. counterparty limits. The Bank is committed to the appropriate level of due diligence to ensure that credit risks have been properly analyzed. catering to the approvals of all exposures handled by the three dedicated Risk Teams constituted for Business segments such as. . where appropriate.1. priced (in line with market practices) and documented. The Bank follows aggregation principles — summing of credit risk limits to the same customer. Besides financial. Retail and Agriculture. Operational and Liquidity Risks at an enterprise level and monitoring regulatory capital requirements of the Bank. monitored and assessed in the light of changing counterparty and market conditions.

420.399.786 440.021." FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Segmental information in respect of the class of business and geographical distribution of advances.34 5.28 1.27 19. Retail credit cycle and its scope include.33 0.455.176.041 1.099 1. mitigate and approve risk on a portfolio level.03 0.19 0.785 821.444.737 100.483.11 1.362 2.22 0.575 413.013 4.998 371. 2011 138 Retail Risk Management Framework covers and operates on a Program lending approach to manage.232 59.614 1.42 13.990 1.81 17.88 0.33 8.758 4.731 1.19 2.723 1.073 2.48 0.00 .734.10 3.048 436.801 71.68 0.551.654.52 0.00 14.198 6.312.921 43.76 0.03 0.391 84.851 519.21 0.193.339 494.792.13 4.720 5.422 251.209 548.115 8.10 0.08 1.24 0.01 21. and contingencies and commitments is given below: 2011 Advances (Gross) Rupees in ’000 Percent Deposits Rupees in ’000 Percent Contingencies and Commitments Rupees in ’000 Percent Chemical and Pharmaceuticals Agriculture Textile Cement Sugar Construction Ready made garments Footwear and leather garments Automobile and transportation equipment Financial Oil Refining / Marketing Distribution / Trading Electronics and electrical appliances Production and transmission of energy Iron and Steel Food and Allied Synthetic and Rayon Paper and Board Individuals Telecommunication Transportation.438 223.639.646.734.947.311 28.109 4.705 165.276.065 214.227 2.14 0.033 64.26 1.137.14 1.715 2.233. Retail Risk Management is responsible for managing the entire retail credit cycle through the Retail Credit Policy and Analytics teams in line with the business strategy on various Key Performance Indicators (KPIs).84 100.33 1.452.583 444.133.06 6.74 3.132 2.589.60 2.416 35.14 2.337.06 46.186 5.255.74 0.164 876.864.26 0.926.85 0.924 6. Portfolio & Account Management.081.18 1.299 1.759 63.99 5.302 2.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.69 100.969 134.823.86 3.37 5.618 24.41 2.234 112.438 5.795 4.571.892 32. Road and Air Mining and Quarrying Others 10.03 0.60 4.508.103 586.36 3.85 0.196.61 0.54 0.997 2.282 708.683 643.861.00 3.06 0.22 1.24 0. deposits.835 13.65 0.330 6.254.95 0.303.110 12. Collections and Recovery.897.69 14.00 1.903.76 0.846.58 4.934 5.221 9.326 6.954 366.094.457 804.59 1.81 0.419.31 100.96 0.02 9.156 14.319 1.762.599 1.82 0.966 3.59 2.996 449.05 27.525.994 1.576 3.438.53 6.048 60.427. Product Planning.614. Credit Acquisition & Underwriting.416 1.76 2.

850. 2011 2010 Advances (Gross) Rupees in ’000 Percent Deposits Rupees in ’000 Percent Contingencies and Commitments Rupees in ’000 Percent 139 Chemical and Pharmaceuticals Agriculture Textile Cement Sugar Construction Ready made garments Footwear and leather garments Automobile and transportation equipment Financial Oil Refining / Marketing Distribution / Trading Electronics and electrical appliances Production and transmission of energy Iron and Steel Food and Allied Synthetic and Rayon Paper and Board Individuals Telecommunication Transportation.275 1.14 4.411 6.944 65.405.671 3.486.377.660.587 2.86 0.950.61 91.214 334.991 165.46 2.602 149.298 150.77 0.648 4.005 3.611.22 2.780.92 0.44 3.889 364.073 1.40 100.657.749 244.48 4.855 89.1.35 3.579 269.80 0.64 0.649 5.52 0.39 100.128.59 31.70 89.25 100.339 147.134 1.382 806.022 259.235.967.013 17.016.79 100.22 4.183 119.148 1.745 1.536 1.121.167 382.39 3.787.985 195.50 0.808.32 8.702.48 2.453.656 3.962.591 29.11 0.016 4.70 0.032.579.407 205.032 5.06 1.112 151.824 2.13 0.455.89 0.87 0. Road and Air Mining and Quarrying Others 10.493.447 75.39 0.10 100.00 18.22 3.560.955 43.30 12.993.00 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .032 16.18 0.619 255.884 788.058 35.882 544.265 1.00 1.589.951.22 13.971 1.610 109.450 3.398 366.36 3.03 45.285.731 8.08 21.614.2 Segment by sector Advances (Gross) Rupees in ’000 Percent Rupees in ’000 Deposits Percent Contingencies and Commitments Rupees in ’000 Percent Public / Government Private 17.430 6.509.056.60 5.68 0.613.881.738.614.315.65 13.413.893 6.01 0.798.37 0.08 0.41 0.48 3.438.334 1.112 3.136 214.18 3.145 119.124 6.08 30.678 59.924 429.85 11.257 2.24 0.569.38 4.05 2.736 800.19 0.17 0.88 0.032.086 1.29 0.02 1.840 6.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.204 2011 2.342 3.65 0.244 89.00 0.195.143 854.30 100.95 0.409 76.00 4.61 1.50 0.057.878 19.503 270.29 19.483.850.01 0.628 968.963 1.674.886 28.595 196.760 32.62 0.409 7.77 0.41 0.288.13 0.02 0.93 0.75 82.229 41.287 288.00 7.477.378.812 7.330 10.37 2.00 44.772 369.643 1.508 12.21 2.269.206.

860 179.853 798.031 2.602 8.164 141.577 420.239 2.000.163 594.229 5.317 710.272.158.379 26.119 891.621 18.518 3.200 41.54 93.512 3.758 844.510 85.472 90.896.081.806 83.1.166 3.892 372.458.245 151.353 498.779 573.843 3.345 154.223 204.920 273.406 1.344 195.731 24.816 2.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.204 8.105 152.745 1.31 91.707.600 34.223.640 80.629.746 17.832 770.947 145.095.Rupees in ’000 ------------------------------------------------------Chemical and Pharmaceuticals Agriculture Textile Cement Sugar Construction Ready Made Garments Footwear and leather garments Automobile and Transport Equipment Financial Oil Refining / Marketing Distribution / Trading Electronics and electrical appliances Production and transmission of energy Iron and Steel Food and Allied Synthetic and Rayon Paper and Board Transportation.00 16.816 1.265.135 321.648 1.179.365 8.546 5. 2011 2010 140 Advances (Gross) Rupees in ’000 Percent Deposits Rupees in ’000 Percent Contingencies and Commitments Rupees in ’000 Percent Public / Government Private FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 9.123 1.070.3 Details of non-performing advances and specific provisions by class of business segment 2011 Classified Advances 2010 Specific Specific Classified Provision Provision Advances Held Held ------------------------------------------------------. Road and Air Telecommunications Individuals Others (including manufacturing and real estate) 1.477.893 2.630 78.236 17.452 561.206.951.377.239 1.529 134.061.900.630 125.291.377.656 3.315.796 56.109 56.062.335 383.216 218.163.997 492.024.290 7.298 318.46 100.267 13.409 6.859.005.845 4.008.368.350 2.250 933.819.414 24.759 36.865 227.653 34.97 92.69 100.024 6.563 131.944.091.00 3.310.044.03 100.654 399.380 236.172 826.663 584.179 1.423 191.143 170.713 663.00 44.060.014 200.790 426.918 82.389 439.606 182.464 112.786 6.240 44.250 38.166 22.486 5.822 66.450 7.954 243.496 32.067 .777 372.483 5.405.296.604 3.021 4.

213.013 Pakistan Asia Pacific (including South Asia) Europe United States of America and Canada Middle East Others 2010 Profit Total Net Contingencies before assets assets and taxation employed employed commitments ------------------------------------------------------.1.5 Geographical segment analysis 2011 Profit Total Net Contingencies before assets assets and taxation employed employed commitments ------------------------------------------------------.067 17.123 24.159 43.123 17.377.Rupees in ’000 ------------------------------------------------------Pakistan Asia Pacific (including South Asia) Europe United States of America and Canada Middle East Others 827.826 19.320.758 24.450 41.067 44.Rupees in ’000 ------------------------------------------------------1.013 1.163.567.517.091 292.091 292.923 267.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.4 Details of non-performing advances and specific provisions by sector 2011 Classified Advances 2010 141 Specific Specific Classified Provision Provision Advances Held Held ------------------------------------------------------.044.567.119 17.450 .320.213.478.589.1.770 16.770 41.062.478.Rupees in ’000 ------------------------------------------------------FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Public / Government Private 26.377.062.044.054 267.758 17.707.054 827.923 16.163.517.589.119 26.707. 2011 44.159 43.826 19.

70%) represents claims on PSEs and 12. For claims on foreign entities. the portfolio has been divided into claims on Public Sector Entities in Pakistan (PSEs). S&P’s. Moody’s. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 44.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below S&P AA. Claims on corporate constitute 54. Exposures Corporate Banks Sovereigns SMEs PACRA JCR-VIS Standard and Poor’s - Moody’s - Fitch - - - - SBP indicative mapping process as instructed in SBP circular "Minimum Capital Requirements for Banks and DFIs" (indicated in table below) was used to map alphanumeric ratings of PACRA.66% (2010: 36. ratings assigned by Standard and Poor’s. Foreign exposures not rated by any of the aforementioned rating agencies were categorized as unrated.6 7 PACRA AA. Types of exposure for which each agency is used in the year ended December 31. SBP Rating 1 2 3 4 5 6 ECA Scores 0.78% (2010: 2.26%) of the total exposure.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below JCR-VIS AA. amount of Bank’s / DFI’s outstanding (rated and unrated) in each risk bucket as well as those that are deducted are as follows. External Credit Assessment Institutions (ECAIs) recommended by the SBP. . claims on corporate (excluding equity exposure) and claims categorized as retail portfolio. Fitch and Moody’s are used.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below Moody s Aa3 and above A1 to A3 Baa1 to Baa3 Ba1 to Ba3 B1 to B3 Caa1 & Below Fitch AA.1 2 3 4 5. 2011 142 44. namely Pakistan Credit Rating Agency Limited (PACRA) and JCRVIS Credit Rating Company Limited (JCR-VIS) are used. JCR-VIS.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below For exposure amounts after risk mitigation subject to the standardized approach. According to the regulatory statement submitted under the Standardised Approach.2.1 Credit Risk: Disclosures for portfolio subject to Standardised Approach For domestic claims. Fitch Ratings and numeric scores of ECAs. under Basel II.2 Credit Risk: General disclosures Basel II specific The Bank has adopted the Standardised Approach. 2011 are as follows.39%) exposure pertains to claims categorized as retail portfolio. 1. to SBP rating grades.83% (2010: 8.

377.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.770 16.377.062. 2011 44.478.013 44.826 292.091 1.450 41.567.517.320.707.923 16.567.119 26.062.054 827.770 41.Rupees in ’000 ------------------------------------------------------Pakistan Asia Pacific (including South Asia) Europe United States of America and Canada Middle East Others 1.213.517.123 24.4 Details of non-performing advances and specific provisions by sector Classified Advances 143 2011 2010 Specific Specific Classified Provision Provision Advances Held Held ------------------------------------------------------.758 24.044.119 17.1.826 19.1.450 .478.320.589.013 43.159 43.589.044.054 267.707.Rupees in ’000 ------------------------------------------------------Pakistan Asia Pacific (including South Asia) Europe United States of America and Canada Middle East Others 827.5 Geographical segment analysis 2011 Total Profit Net Contingencies assets before assets and employed taxation employed commitments ------------------------------------------------------.091 292.758 17.067 17.213.159 19.067 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 44.Rupees in ’000 ------------------------------------------------------Public / Government Private 26.1.123 17.923 267.5 Geographical segment analysis 2010 Profit Total Net Contingencies before assets assets and taxation employed employed commitments ------------------------------------------------------.163.163.

70%) represents claims on PSEs and 12. ratings assigned by Standard and Poor’s. amount of Bank’s / DFI’s outstanding (rated and unrated ) in each risk bucket as well as those that are deducted are as follows. Moody’s. External Credit Assessment Institutions (ECAIs) recommended by the SBP. claims on corporate (excluding equity exposure) and claims categorized as retail portfolio. JCR-VIS. Fitch and Moody’s are used. Exposures Corporate Banks Sovereigns SMEs PACRA JCR-VIS Standard and Poor’s Moody’s Fitch - SBP indicative mapping process as instructed in SBP circular "Minimum Capital Requirements for Banks and DFIs" (indicated in table below) was used to map alphanumeric ratings of PACRA. Foreign exposures not rated by any of the aforementioned rating agencies were categorized as unrated.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below JCR-VIS AA. namely Pakistan Credit Rating Agency Limited (PACRA) and JCRVIS Credit Rating Company Limited (JCR-VIS) are used. SBP Rating 1 2 3 4 5 6 ECA Scores 0. under Basel II. to SBP rating grades. For claims on foreign entities.39%) exposure pertains to claims categorized as retail portfolio. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 44.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below For exposure amounts after risk mitigation subject to the standardized approach. S&P’s.2 Credit Risk: General disclosures Basel II specific The Bank has adopted the Standardised Approach.2.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below Moody s Aa3 and above A1 to A3 Baa1 to Baa3 Ba1 to Ba3 B1 to B3 Caa1 & Below Fitch AA.and above A+ to ABBB+ to BBBBB+ to BBB+ to BCCC+ & Below S&P AA.6 7 PACRA AA.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Fitch Ratings. 2011 144 44.1 2 3 4 5. 1.83% (2010: 8.66% (2010: 36. According to the regulatory statement submitted under the Standardised Approach.26%) of the total exposure. .78% (2010: 2.1 Credit Risk: Disclosures for portfolio subject to Standardised Approach For domestic claims. 2011 are as follows. Claims on corporate constitute 54. the portfolio has been divided into claims on Public Sector Entities in Pakistan (PSEs). and numeric scores of ECAs. Types of exposure for which each agency is used in the year ended December 31.

863 2 14.315.458 Unrated 61.387 9.Banks - Sovereigns etc.829 944.683.198.767 969.597.049 37.599.620.487 47.718.692.416 37.094 282.363.440 13.728 3.367 5.947 226.440 13.363.347 42.576 4.491 5.005.519.377.094 282.287 4.6 949.369.377.133.795. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Government of Pakistan SBP Retail Residential Mortgage Past Dues Loans Past Dues against Residential Mortgage Unlisted Equity Investment Listed Equity Operating Fixed Assets Other Assets Total Collaterals used by the Bank for Credit Risk Mitigation (CRM) were as follows: Cash margin Government securities Guarantees of Government and Banks.369.484.429.493.493.429.795.000.413 2.120.347 42.576 8.Cash and Cash Equivalent .203 377.919 20.518.514 3.576 1 19.863 19.413 2.971 3.416 37.3 4.966 1.866 9.471.115 9.Public Sector Equities . 2011 145 Exposures .854 1 2.4 1.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.483 4.618.134 1.971 3.625 14.615.471.982 5.116 5.152 .133. Shares on KSE main index.125.487 47.049 37.134 35.722 60.919 23.247.346 3.663 9.718.Corporate Deduction Amount Net Amount Rating Category CRM Outstanding ------------------------------------------------------.643 1.385.576 8.346 3.Rupees in ’000 ------------------------------------------------------4.2.247.139 1.947 221.483 1.5 Unrated 5.576 994.3 Unrated 1.

159 .751.264.898 5.and off-balance sheet positions of the Bank will be adversely affected by movements in market rates or prices such as interest rates.069 1.244. The Bank undertakes currency risk mostly to support its trade services and maintains overall foreign exchange risk position to the extent of statutory Foreign Exchange Exposure Limit (FEEL) prescribed by State Bank of Pakistan.213.616 9.966) 19. net open position.563.865 2. Exposure limits such as counterparty.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.536 (1. and other products.826 248. which are defined as follows: FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 44.3 Market Risk It is the risk that the value of the on.109 254.009 292. 44.1 Currency Risk Assets Liabilities 2011 Off-balance sheet items Net currency exposure ------------------------------------------------------.354.127 2.321) 12.102 15.192 20. All such instruments and transactions are exposed to general and specific market movements. open foreign currency positions.4 Foreign Exchange Risk / Currency Risk Foreign exchange risk / currency risk is the current or prospective risk to earnings and capital arising from adverse movements in currency exchange rates. Foreign Exchange Risk exposures are managed by matching future maturities.Rupees in ’000 ------------------------------------------------------Pakistan rupee United States dollar Great Britain pound Japanese yen Euro Other currencies 286. rate and spread movements of its earning assets.006.667 (19. holding common equity. The market risk is further divided into various sub-categories. The Bank seeks to mitigate market risk by employing strategies that correlate price. Changes in currency rates affect the value of assets and liabilities denominated in foreign currencies and may affect revenues from foreign exchange dealing.082.558 6.567.248.778 (1. equity prices and/or commodity prices resulting in a loss to earnings and capital. Market risks arise generally from trading activities.202 (54. liabilities and trading activities.798 19. Treasury Front Office. It refers to the impact of adverse movements in currency exchange rates on the value of open foreign currency positions. Market Risk Management and Treasury Middle Office perform market risk management activities within the Bank.959 245 273.4.382 2.582.539.331 2. 2011 146 44.425) 5.238. The Bank has Enterprise Risk Management Committee which is responsible for recommending market risk policies and strategies for Board approval and its subsequent implementation and quarterly review. gap. dealer and bucket-wise currency delta limits are in place in accordance with the Bank s approved policies in order to manage associated risk and concentration at acceptable tolerance levels.092 462.096.504) 15.

Additionally. 2011 147 2010 Assets Liabilities Off-balance sheet items Net currency exposure FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 ------------------------------------------------------.571 6.5 Equity position risk Equity position risk is the risk arising from unfavorable fluctuations in prices of shares in which the Bank carries long positions as part of its trading book.588. .440 1.436 729.027 238 250. The Bank’s equity position is governed by position limits imposed by State Bank of Pakistan for overall investment and per scrip exposure.860.772 267.770 44.210 13.729 2.923 231.359 16.523 289.831 (2. Systematic risk is due to sensitivity of portfolio s value to changes in overall level of equity prices. It is a risk to earnings or capital that results from adverse changes in the value of equity related portfolios of the Bank.275 1.659 18. while unsystematic risk is associated with price volatility that is determined by the specific characteristics of the investee company.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.074 1.043.276.320. Price risk associated with equities could be systematic or unsystematic.031.517.407.236 2.615 1.551) 2.175) 16.127 (10. there are internal limits set to manage overall earnings in the form of stop loss limits and maintain a diverse portfolio through sector concentration limits.170.181.056.Rupees in ’000 ------------------------------------------------------Pakistan rupee United States dollar Great Britain pound Japanese yen Euro Other currencies 252.136 15.787 2.010.803.153 (5.874 1.115.759 8.106) 1.215.

etc.353.965.197 8.718 93.015.673 1.739.047.007.354) 10.798 (1.62 7.195 3.570 399.755.997 29.764) (15.499.170.642 49.500 26.945 (15.33 15.680.297.52 3.217.094 12.029 (13.666 51.399 10.617 45.326.991.253.807 16.527 6.941.N OTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.444 - .908.542.882 1.924 55. commitments to extend credit.075.527 2.109.100 14. etc.739.681 32.326.407 37.642 39.194 270.093.520 35.289 3.996 7.058 8.929 15.862.08 Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending (including call lending.916.217.986 214.282.147) 11.Rupees ’000 ---------------------------------------------------------------------------------------------- On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Investments 12.567.506 2.091 58.767 25.194 61.036.829.) Forward borrowings (including call borrowing.161.551 1.133.147) 2.624.) Off-balance sheet gap Total Yield / Interest Risk Sensitivity Gap Cumulative Yield / Interest Risk Sensitivity Gap 8.022 705.898 8.415 (4.012 8.407.909) 40.170.482 17.445.934 32.586.632.59 Advances 13.445. repurchase agreement borrowing.409.950 5.372.934 551.163 46.053.243.764) 26.709 (13.019.187 148.081.381 1.367.174.844 39.326.744 61.487.995.584.395.588 12.739.022 52.660 14.437.424.192.909) 1.905 (1.151 (15.956) 9.551 18.766 46.108 2.904.774.308.388.028.09 8.252 31.015 13.674 2.747.866 3.145) 765.307.624.833 6.028.537 4.905 2.696.145) 44.354) 3.668. 2011 148 44.785.963.523 6.016 9.047 22.763 15.057.548.748.267 19. repurchase agreement lending.956) (15.712 22.982.307.808.579 613.965.961.982.291 23.848 (9.223.318.956) 31.685.995 7.632.075.587 2.760.731 4.353.520) 18.745.910 16.160.721.581.741 19.108 4.328 - - - - - - - - - - - - (15.750 1.223.047.682 (7.614.763 3.634.853.200 27.799.924 23.666 271.501 8.047.053.6 Mismatch of Interest Rate Sensitive Assets and Liabilities / Yield / Interest Rate Risk 2011 Exposed to Yield / Interest risk Effective Yield / Interest rate Over one month to Over three months to three months six months Over six months to one year Over two Over one years to year to two years three years Over three years to five years Over five years to ten years Non-interest bearing financial instruments FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Total Upto one month Over ten years ---------------------------------------------------------------------------------------------.741.618 (4.478.763 (7.

315.375 16.247 27.218.833 2.157.334 2.597 (20.160 39.932.690 1.974.657.756 3.694 3.970.520.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.060.191 49.818 25.218. etc.807.381.706.386 1.366 1.921.068.683.778.707.116) (58.601.204 4.335 933.879 20.265.585 3.345.904.501 1.504.395 34.749.544 (11.976 1.727.018.164.272 3.279.265 3.396.128.859 158.549 133.708.198 73.909 86.042.224.537.932.169 2.899 939.097 18.899 17.968 30.881 7.649 8.217 19.078 - FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Total Upto one month Over ten years .223.800 513.982 249.521 (58.838.887.896 (1.009 7.576 32.777.595.028 17.235.911 23.198.841) 9.811 47.595.920 35.537.498 449.097.480 16.520.547.145. repurchase agreement borrowing.386 18.726 1. etc.859 2. repurchase agreement lending.508.881 25.329.749.215.06 14.649 2.769 6.364 2.685.778.315.428.763) 2.863 1.818 (9.279.421.116) 25.492. 2011 Mismatch of Interest Rate Sensitive Assets and Liabilities / Yield / Interest Rate Risk 2010 Exposed to Yield / Interest risk Effective Yield / Interest rate Over one month to Over three months to three months six months Over six months to one year Over two Over one years to year to two years three years Over three years to five years Over five years to ten years Non-interest bearing financial instruments 149 ---------------------------------------------------------------------------------------------.932.380.654 12.924 3.780.405 19.116) 49.904 195.70 8.568) 2.076 42.863.707.697 6.970.713 61.594 18.877.594.411 2.240 1.768.008 57.632 78.833.59 - - - - - - - - - - - - (58.730.899 939.131 184.615 98.794.395 12.428.633 4.013 485.591.859 34.215 1.349.06 Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities On-balance sheet gap Off-balance sheet financial instruments Forward Lending (including call lending.635.726 14.924 5.690 11.094.892.392.899 19.298) 27.) Forward borrowings (including call borrowing.520 2.639.523 484.780.982 37.859 2.128.448 4.944.594 939.203 860.636.520.971 4.133 3.568) 6.312.060 676.890 175.151.00 Advances 12.283 3.215.) Off-balance sheet gap Total Yield / Interest Risk Sensitivity Gap Cumulative Yield / Interest Risk Sensitivity Gap 17. commitments to extend credit.798 4.179 939.274 214.Rupees ’000 ---------------------------------------------------------------------------------------------- On-balance sheet financial instruments Assets Cash and balances with treasury banks Balances with other banks Investments 10.779.088 (11.534 250.460.

The Bank s liquidity risk management process.2 The Interest rate risk of the Bank arises when there is a mismatch between contractual maturities. liquidity excess / shortfall and estimated overall liquidity. The Bank maintains an active presence in money markets to enable this to happen.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 44. .3 Major sources of Interest rate risk are.and off-balance sheet assets and liabilities. ii) changing rate relationships among different yield curves affecting bank activities (basis risk).6.7 Liquidity Risk Liquidity risk is the risk that the Bank is unable to meet its payment obligations associated with its financial liabilities when they fall due. provider. 44. The Bank s Asset and Liability Management Committee manages the liquidity position on a continuous basis.Maintaining a portfolio of highly marketable assets that can easily be liquidated as protection against any unforeseen interruption to cash flow. managed by monitoring future cash flows to ensure that requirements can be met. and to replace funds when they are withdrawn. available Internal liquidity. and .Managing the concentration and profile of debt maturities.Monitoring of next three months liquidity target. . . as carried out within the Bank and monitored by the management. 2011 150 44. 44. Treasury and Capital Market maturities are monitored on periodic basis so as to provide management with cash flow measurement and projections. iii) changing rate relationships across the range of maturities (yield curve risk). . i) differences between the timing of rate changes and the timing of cash flows (re-pricing risk).Managing the liabilities both on a contractual and behavioural basis primarily by matching the maturity profiles of assets and liabilities.6. Sources of liquidity are regularly reviewed to maintain a wide diversification by currency.1 Yield curve risk is the risk that a financial instrument will suffer either a decline in income or capital because future changes in prevailing interest rates impact assets more or less than they impact liabilities.6. product and term. .Monitoring balance sheet liquidity ratios against internal and regulatory requirements. Risk is addressed by Asset and Liability Management Committee that reviews the interest rate dynamics at regular intervals and decides re-pricing of assets and liabilities to ensure that the spread of the Bank remains at an acceptable level. It is inherent primarily to the banking book mainly through advances and deposits portfolio. includes: . and iv) interest-related options embedded in bank products (options risk). This includes replenishment of funds as they mature or borrowed by customers. which are subject to interest rate adjustment within a specified period or re-pricing of on. geography.Day-to-day funding.

642 39.869 277.995 10.243.680 3.285 69.410.525 758.831.321 7.966 11.690.222.742.176.075.479.567.978.295.159 3.685.842 (28.215 15.856 199.093.188.786) 3.020 12.100 22.498.406 12.904.179 500.324.155.261.354.667 19.046 3.785.614.105 44.178 17.203 135.200 293.1 Maturities of Assets and Liabilities (based on contractual maturities / expected withdrawal pattern) 2011 Upto one month Over one month to three months Over three months to six months Over six months to one year Over one year to two years Over two years to three years Over three years to five years Over five years to ten years Over ten years FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 151 Total ---------------------------------------------------------------------------------------------.591.653 2.497.188.986 214.643 200.629 551.680 5.126 11.181 1.080.108 4.662. 2011 44.742.200 215.793.320 2.220 14.997.370 15.090 1.685.640.767 9.731 4.588 33.572.482.826 6.929 1.134 6.200.445 705.211.321 9.006.690 497.975 5.581.445.474.694 54.562 29.833.504.275 29.748.830 16.Rupees ’000 ---------------------------------------------------------------------------------------------Assets Cash and balances with treasury banks Balances with other banks Investments Advances Operating fixed assets Deferred tax assets .274 320.355.373.482 359.301.433.439 613.393.376 29.704.199) 9.827 788.136 280.945 2.458.966 69.098.712 1.705 4.155 1.068 15.873 2.638 Net assets Share capital Proposed shares to be issued on amalgamation Reserves Unappropriated profit Surplus on revaluation of assets .649 2.485.286 46.860 13.047 28.419.421 1.696.161.118 6.579 14.425.395.965 18.133.950 1.444.487.016 12.646 39.378 1.225 17.634.499) 765.409.821 2.131 2.309.882 2.403.959.075.065.061.526 (139.376 17.433.693 18.407 41.488.735.111 273.767 36.292.113.003 27.260.482 21.net Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 3.000 19.137 35.092 21.915 225.643 1.081.189 36.849.718 93.159 8.277 40.050.024 33.213.642 23.911 4.446.798.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.436) 1.642.7.187 148.655.793.736.371.222.763.034.207 (3.831 1.126 2.929 4.052 3.578 186.718 8.427 1.562 22.537 24.141 34.184.211.676 24.668.607 5.812.945 9.197 11.330 (17.703.732 19.167 1.534.864.882.213.085 292.131 14.828.716 12.

202 10.198.517.292 26.131.270.909 86.295.475 2.056 291.277.266.400 1.057 1.210.702 676.395 13.688.671 102.261.377 43.418.820) 484.585 2.770 7.179) 2.872.199 1.170 777.939 20.881 23.003.727.493.497 989.920.074 7.592 238.987 20.111.126 1.304.026 28.235 4.651 31.875.923 10.723 97.188.808 276.102 10.216.516 30.423.708.546 17.698 20.041.047 17.340 22.315.189 4.950.593.863 29.724.703 5.904 195.674.946.251.555.642.791 250.770 3.342 503.859 19.161 22.861.460.304 1.878 (125.833.984 3.218.153 16.538.407.094 28.915 18.720 1.958 51.923 1.402 201.924 5.221.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.509.082 48.769 8.116 12.037.088 1.505.595.340 16.970.280 1.378 145.128 16.633.243 582.667.688 1.871.258.108) 16.406 5.309.358.376.870.549 133.392 6.017.182 4.121.709 32.136 158.909 16.112 21.843 16.360. 2011 152 Maturities of Assets and Liabilities (based on contractual maturities / expected withdrawal pattern) 2010 Upto one month Over one month to three months Over three months to six months Over six months to one year Over one year to two years Over two years to three years Over three years to five years Over five years to ten years Over ten years Total FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 ---------------------------------------------------------------------------------------------.597 22.362 1.046.204 4.084 540.735 980.001.620 Net assets Share capital Proposed shares to be issued on amalgamation Reserves Unappropriated profit Surplus on revaluation of assets .010 14.479.303 960 2.207.671.320.610.000 25.354.803.498 12.021 44.131 14.093.364.511.528 1.376 514.164 267.135 699.428.890.539.074 2.292.035 623.727.615.859 34.866 721.877 5.261.711.375 22.479 20.273) 7.744.351 16.968 38.730 42.329.657) 485.139 (7.599 9.059 2.850 (4.751 7.253 7.559 4.872 145.591 10.820 754.950.608 29.316 15.Rupees ’000 ---------------------------------------------------------------------------------------------Assets Cash and balances with treasury banks Balances with other banks Investments Advances Operating fixed assets Deferred tax assets .009 15.994.232 34.133.218.020 198.851 3.417.348.483.064 652.021 501.961 (12.net Other assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 3.962 15.517.148.664.387.945 3.401 582.720 58.706.726.376.544.635.196 (8.799.017.

wherever necessary to facilitate comparison and to conform with changes in presentation in the current year. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 The Operational Risk Management policy of the Bank is approved by the Board of Directors. 45 DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue on February 28. 2006 issued by the State Bank of Pakistan in respect of which no amounts are outstanding have not been reproduced in these financial statements except in the statement of financial position and the profit and loss account. and social and environmental impacts. or from external events.3 PRESIDENT & CEO DIRECTOR DIRECTOR DIRECTOR .1 GENERAL Comparative information has been re-classified. Earnings per share for the prior year has been restated consequent to the issue of bonus shares during the current year. 2012 by the Board of Directors of the Bank. re-arranged or additionally incorporated in these financial statements. Material Operational risks are identified in new activities and products through "Other Risk Assessment Procedures (ORAP)". Captions as prescribed in BSD circular No. 47. natural disasters.NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 4 dated February 17. Each department has processes and systems in place to address operational risks within their area. IT security failure. Loss Database and Key Risk Indicators. The Bank s businesses are dependent on the ability to process a large number of transactions efficiently and accurately. Figures have been rounded off to the nearest thousand rupees unless other wise stated. Bank’s Operational Risk Management framework consist of tools such as Risk & Controls Self Assessment. 47 47.2 47. human factors. loss of key staff. These include key controls and the provision of business continuity plans to protect against major disruptions. fraud. regulatory non-compliance. dependence on key suppliers. Operational risks and losses originate from business/operational process failure. service quality compromised. 2011 44. The Bank has implemented an effective Operational Risk Management framework for managing operational risk. 46 NON-ADJUSTING EVENTS AFTER THE BALANCE SHEET DATE There were no appropriations or distributions made after the reporting date.8 Operational Risk 153 Operational Risk is the risk of direct or indirect losses resulting from inadequate or failed internal processes or systems. Regular updates on operational risk status is presented to Enterprise Risk Management Committee (ERMC) and Board of Directors through Board Risk Management Committee (BRMC).

DESTINY DESIRED . Once we start to have faith in the power of our own will. The extent and power of ambition makes individuals define the fates of many and live on long after they are gone. the future can be whatever we want it to be.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 The world today is but a culmination of all those ambitious souls who lived before us.

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411 * ** *** + 3.L Modaraba 1st *** Unicap Modarba *** First Prudential Modaraba Banks / Financial Services Summit Bank Limited (Formerly Atlas Bank Limited) Prudential Investment Bank Limited */*** Arif Habib Corporation Arif Habib Investment Limited First Capital Securities Corporation Limited Standard Chartered Leasing Limited Askari Commercial Bank Limited Bank Alfalah Limited Bank AL Habib Limited + Javed Omer Vohra & Company JS Bank Limited Balance carried forward 10.776 54 48 67.407 2.999.587 486.528 15.528 15.849 230 301.703 101 455.000 100.656 11 20.762.568 56.990.120 20.772 1.801 A AA AA+ A A AAAA AA AA+ A The bank holds more than 10% of investees’ capital in Prudential Investment Bank Limited — 17.869 784 13.899 shares of Bank AL Habib Limited classified as strategic investment .603 186 22.934 1.729 85.703 1.500 100.504 1.827. 2.348 22.203.855 129 49 74.922 1.715 certificates of Al-Meezan Mutual Fund.153.000 22.899 8.317 3.151 12.899.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.050 21.703 56.027 217 12.006.4.000 199.324 192.707 17 8. Details of investments in fully paid-up shares of listed companies / modaraba certificates / certificates of closed end mutual funds are as follows: 2011 2010 2011 Name of company / modaraba / mutual fund 2010 At Cost Rupees in ’000 Equity Investment Instruments NAMCO Balanced Fund Al-Meezan Mutual Fund + Modarabas First Habib Modaraba **/ + First Fidelity Leasing Modaraba I.405 114 14.000 3.825 175 42.10%) Shares / certificates of Rs 5 each Delisted companies Includes 3.994.240 16.000 35. 2011 156 Statement showing details of investments in ordinary and preference shares / certificates of listed and unlisted companies / modarabas / mutual funds and Term Finance Certificates and bonds as referred to in note 10.163 424 488.962 881.099 339.990.950 .10% (2010: 17.762.4 to the financial statements.B.966 1.899.000 certificates of First Habib Modaraba and 11.391 377.829 288 575 11 1 2011 2010 Market Values Rupees in ’000 5.772 525. 1.670 2.950 1.990 2.260 33.000 11.455 404.018.224 174 357 5 1 AAAA+ BBB Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Ordinary shares / certificates of Rs 10 each 999.295 20.641 772 220 443.928 69.000 15.000 100.000 600.702 224 295.

189 190.469 17.350 57.037 1.686 *** Delisted companies + Includes 22.361 111.923 11.665 122.977 530.403 225 5.388 1.986 110.300 3.292 6.171.326 332 6.177 553.114.292 79.742 54.178 43.000 .287 89.500 914.034 540 3.215 73.1.469 13.956 140 5.781 333.494 718 16 18 2.365 22.080.111 11.764 53.000 64.590 6.493.045 433.197 10.813 31 5 237 246 1.979 110.366 3.979 AA+ 22.200 32.107. 2011 Quality of Available for Sale Securities 2011 Name of company / modaraba / mutual fund 2010 At Cost Rupees in ’000 Balance brought forward The Bank of Punjab Habib Metropolitan Bank Limited + KASB Bank Limited Silk Bank Limited First Credit & Investment Bank Limited National Bank of Pakistan Limited NIB Bank Limited MCB Bank Limited Soneri Bank Limited Construction and Materials Buxly Paints Limited Pioneer Cement Limited Cherat Cement Company Limited Dadabhoy Construction Technology Limited *** EMCO Industries Limited FECTO Cement Limited Mustehkam Cement Limited Lucky Cement Limited Oil and Gas Pakistan State Oil Limited Burshane LPG Pakistan Limited (Formerly Shell Gas LPG) Shell Pakistan Limited Attock Petroleum Limited Pakistan Petroleum Limited Balance carried forward 486.200 251 2.475 33.648 22.256 95 16 149 648 3.368 43.162 10.030 35.520.620 11.004 250.825.375 41.791 62.187 .947 13.024 5.620 100.689 1.942 11.227.027 431.10.923 shares of Habib Metropolitan Bank Limited classified as strategic investment.664 9.438 1.421 177 7.946 49.869 91.782 AA+ AA+ Medium to Long Term Rating Assigned (where available) AAAA+ AAAA+ AAAAAA AAAA157 2011 2010 Ordinary shares / certificates of Rs 10 each .10.737 2011 2010 2011 2010 Market Values Rupees in ’000 404.149 280.1.666 12.405 373.653 488.411 975.437 3.211 443.774 572 5 9 2.000.420 338.891 3.477 . FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .801 99.132.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.717 54.662 852.411 22.665 3.107.

743 - 310.241 53.697 504.586 Bannu Woollen Mills Limited 870 Bata Pakistan Limited 163.692.000 60.388 1.74% (2010: 11.713 149.738 1.468 5.132.620 442 3.000 .720 78.500 1.161 28.918 D SD * The bank holds more than 10% of investees’ capital in Ideal Energy Limited — 11.666 Pakistan Refinery Limited 19.6.876 212.047 3.499 9.1.214 Hub Power Company Limited + 367.266 1.749 8.166 Pakistan Oilfields Limited 67.497 41.187 2.756 Fixed Line Telecommunication Pakistan Telecommunication Company Limited 55.362 110.999 .174 24.841 723.542 33.667 16.320.109 472.201 40.547 58.6.983 150.675 Kohinoor Energy Limited + 23.701 9.126.000 shares of Kohinoor Energy Limited classified as strategic investment .612.320 15.857 318.220.654 Personal Goods (Colony) Sarhad Textile Limited 27 27 Accord Textile Limited *** 93 93 Al-Qaim Textile Mills Limited *** 3 100 Amazai Textile Mills Limited 2 2 Asim Textile Mills Limited *** 282 362 Azgard Nine Limited 72.688 189 268.372 939.273 2.402 213.911 3.874 100.542.672.317.500 74.000 181.913 194.311 189.454 11.439 Oil & Gas Development Company Limited 12.773 AAA+ AA+ AA+ 40 21 14 52 1 87 3 3 282 452 60.986 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) AA AAA AAA AA AAA Ordinary shares / certificates of Rs 10 each FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 244.912 456.613 Electricity Altern Energy 1.233 Balance carried forward 1.408.821 Ideal Energy Limited * 28. 2011 158 2011 2010 2011 Name of company / modaraba / mutual fund 2010 At Cost Rupees in ’000 Balance brought forward 1.653 23.000 289.74%) ** Shares / certificates of Rs 5 each *** Delisted companies + Includes 891.161 Karachi Electric Supply Company** 2.500 53.080.000 .891 National Refinery Limited 15.035 Sui Northern Gas Pipelines Limited 2.529 10.911 141.864 14.1.751 Mari Gas Company Limited 1.394 3.000 200.000 766.500 74.635.000.304.513 Kohinoor Power Company Limited *** 303 Kot Addu Power Company 275.228 1.192 36. .350 11.256 2.674 62.674 44.227.085 816 134.145 12.200 2011 2010 Market Values Rupees in ’000 914.226 11.679 939.000 4.788 Telecard Limited 516 Worldcall Telecom 3.361 shares of Hub Power Company Limited and 723.372 .939 2.882 2.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.438 1.686 16.

900 347.899 3.938 165 398 23 46 882 100 595 2.662 11.780 3.000 300.624 260 1.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.103 193.548 15.500 10.274 413.612 343.280 3.483 250.612 41.000 117.295 17 144 103 69.817 5.499 119 286 1.057.500 41.999 75 23 653 1.645 37.000 259.542.400 18.700 3.189 A A+ A *** Delisted companies FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .000 84.718 14.070 178.589 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) Ordinary shares / certificates of Rs 10 each 1.053 164.692.400 1. Globe Textile Mills Limited *** Gul Ahmed Textile Mills Gulistan Spinning Mills Limited Gulshan Spinning Mills Limited Hafiz Textile Mills Limited *** Hakkim Textile Mills Limited *** Ibrahim Fibre Limited Indus Dyeing Manufacturing Company Limited International Knitwear Limited Ishaque Textile Mills Limited *** Itti Textile Mills Limited Kohinoor Industries Limited Kohinoor Mills Limited Kohinoor Spinning Mills Limited Kohinoor Sugar Mills Limited Kohinoor Textile Mills Limited Maqbool Textile Mills Limited Masood Textile Mills Limited Mehr Dastgir Textile Mills Limited Mohd Farooq Textile Mills Limited Moonlite (Pak) Limited Nishat (Chunian) Limited Balance carried forward 1.634 20 69 427 113 126 1.059 26.648 19.633 2011 2010 Market Values Rupees in ’000 1.300 3.500 168.674.362 1.861 618 20 69 384 2.232 3.059 29.500 55.753 8.750 100 64 10 22.439 24 10 10 12.800 194.819 26.200 1.936 18.408.882 2.200 74 11.721.370 57.700 7.672. 2011 159 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward Blessed Textile Mills Limited Crescent Textile Mills Limited Crown Textile Mills Limited *** Dawood Lawrancepur Limited Fateh Industries Limited *** Fateh Sports Wear Limited *** Fateh Textile Mills Limited Fazal Textile Mills Ltd.662 335.782 11.273 2.500 104.318 128 155 155 1.300 7.927 2.846 60.674 37.361 28 10 14.490 23.230 2.459 2.151 283 10.918 88 7.479 1.782 3.622 17 1.360 18.826.353 30 30 69 69 1.766 2 2 158 242 70.239 1.500 8.623 19.362 3.584 3.444.648 178.055 2.363 3.473 72.239 1.908 2.948 1.588 255 255 260 25 25 74 1.076 2.490 5.587 139 978 1.

806.289 1.752 1.268 2011 2010 Market Values Rupees in ’000 1.192 19 19 88 88 127.261 77.567.376 2.381 430 45 497 1.500 128.510 98.336 4 4 57 39 114 2.826.765 18.000 12.268 542.306 2.809 18.895 12.500 2.926 27.010 288.000 42.000 69.306 79. 2011 160 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward Nishat Mills Limited Olympia Textile Mills Limited Pakistan Synthetic Limited Paramount Spining Mills Limited Premium Textile Mills Limited Qayyum Spinning Mills Limited Ravi Textile Mills Limited Redco Textiles Limited *** Reliance Cotton Spinning Mills Limited Reliance Weaving Mills Limited Ruby Textile Mills Limited Rupali Polyester Limited Saif Textile Mills Limited Sana Industries Limited Sapphire Fibers Limited Service (Textile) Industries Limited *** Service Fabircs Limited *** Service Industries Shahtaj Textile Mills Limited Shams Textile Mills Limited Siftaq Internatioanal Limited Sind Fine Textile Mills Limited Sunrise Textile Limited *** Sunshine Cotton Mills Limited *** Suraj Cotton Mills Limited Taj Textile Mills Limited *** Treet Corporation Limited United Brands Limited Zahoor Cotton Mills Limited *** Zahoor Textile Mills Limited *** Zil Limited Balance carried forward 1.498 17.055 2.500 9.473 1.281 1.986 2.321 47.440 699 1.572 152 22.326 47.897 2.000 12.437 17 17 102 102 78 78 23 23 176 57 85 2.600 BBB+ AA- *** Delisted companies .067 1.376 69.000 5.721.859 12.382 43 1.575.605 8.972.695 2.000 17.927 2.347 1.799 67.250 3.642 69 2.250 99.067 1.518 1.590 280.000 58.046 2.531 9.046 156.000 229.859 2.276 40.589 6.700 327.000 128.100 260.000 219.514 22 27 22 22 2.605 1.674.148 57.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.157.633 6.000 27.460 246 1.417 117 20.745 2.000 35.782 2.407 2.594 4 4 405 127 127 1.144 30 30 77 77 69 69 156 82 82 2.880.268 219.001 2.000 229.176 492 601 79.500 65.316 99.444.533 12 17 5 71 8.200 19.743 9.000 38.564 76.174 2.567.572 14 11 53 66 105.000.828 481 1.840 117.200 3.851 2.596 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) A+ Ordinary shares / certificates of Rs 10 each FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 100.

429 6.596 606 44.363 115.183 1.543 3.377 106.700 133.000 - AA AA 232.1.781 3.629 28.195 803 10.257 9.595 5.Abbas Sugar Mills Limited Chashma Sugar Mills Limited Colony Sugar Mills Crescent Sugar Mills and Distillery Limited Faran Sugar Mills Limited Fazal Vegetable Ghee Mills Limited *** Habib Sugar Mills Limited *** Ismail Industries Limited JDW Sugar Mirpurkhas Sugar Mills Limited Morafco Industries Limited *** Mubarik Dairies Limited *** Nestle Pakistan Engro Foods Limited Pak Ghee Industries Limited *** Pangrio Sugar Mills Limited Sanghar Sugar Mills Limited Shahmurad Sugar Mills Limited Shahtaj Shugar Mills Limited Shakarganj Mills Limited Suraj Ghee Industries Limited Unilever Pakistan Limited Balance carried forward 1.491 4.783 3 3 351 774 1.817 2.322 20.231.451 6.170.930 10.390 .870 33 33 27.512 10.268 1.025 368 12 30 115 540 8.000 10.569 30 1.000 173.500 9.077 232.881.745 2.600 7.000 400.599 80.140.000 1 8.839 173.834.945 35.757 A A A- A BBB+ D FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .782 2.724.838 22.084 19.000 1.309 90.028 617.595 2.882 97 88 5 36 70.000 20.197 2.614 20.AANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.775 1.205 *** Delisted companies 21.210 9.270 7.270 1.471 90 90 6 35.500 400 17.608 846 12.000 130.880.247.084 9.077 46.972.364 9.499 35.579 405 10 220 392 515 8.849 456 2011 2010 Market Values Rupees in ’000 1. 2011 161 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward Electronic and Electrical Equipment Johnson And Phillips (Pakistan) Limited Support Services TRG Pakistan Non Life Insurance Adamjee Insurance Company Limited EFU General Insurance TPL Direct Insurance Limited Food Producers Al.579 21.400 700.464 1.004 27 1.806.000 440 - Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) Ordinary shares / certificates of Rs 10 each 86.570 852 2.839 126.967.647 1.134 126 126 9 9 85.000 382.938 33 33 32.320 53.500 9.000 35.379 2.389 85.511 580 4.000 9.762 17.000 10.125 28.479 117 117 5 35.779 9.294 2.861 5 4 901 901 2.000 126.712 2.482 6.544 948.000 425.575.

009 43.000 shares of Dawood Hercules Chemicals Limited classified as strategic investment.273 45.450 76.083 39.066.363 71.734 56.853 19.173 570 726 885.549 1.797 113.957.269 18.147.876 2.000 101.902 3.447 10.948 16.535 15.171 23.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.840 29 22 7.353 65.835 46.287 215.600 17.848 1.497 1.408 170.461.779.133 3.207 573.324 142.000 24.000 1.107 35.152 11.762 11.292 368 8.194 737.481 15. 2011 162 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward Industrial Engineering Al-Ghazi Tractors ** Millat Tractors Bela Engineering Limited *** Bolan Casting Limited Hinopak Motors Limited K.636 24.881.882 43 134 8.482 3.395 13.599 4.542 7.146 D SD AA A+ AA- ** Shares / certificates of Rs 5 each ***Delisted companies + Includes 12.000 24.017 151.665 13.488 100.481 75.942 99.000 252.641 213.294 2.032 5.659 63.219 7.921 4.250.008 46 46 18.802 97 1.658 12.574 46.980 1.417 2.635 43.484 4.542 17.317 157.166 8.614 19. .819 2.754.204 595.716 119.764 7.374.258 3.358 356 8.365.967.479 2.000 45.140.258 5.565 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) Ordinary shares / certificates of Rs 10 each FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 82.032 7.137.231.781 3.200 19.622.333 247.538.896 352.070 2011 2010 Market Values Rupees in ’000 1.376 2.455 123.918 9.272 - 20.633 14.676 200.367 3.222 1.365 173.004 371.152 43.447 189 21.345 14.615 3.673 1.757 15.360 43.931 15.223 110.094.571 193 6.479 35.192 14.946 224.223 101.152 4.375 323 6.S.069 934.013 5.942 72.B.973 125.752 21.409 9.232 316.230 7.928 947 38. Pumps Company Limited Automobiles and Parts Honda Atlas Cars Limited Indus Motor Company Limited Agri Auto Industries Limited ** Atlas Battery Limited Atlas Honda Limited Baluchistan Wheels Limited Exide Pakistan Limited General Tyre and Rubber Company of Pakistan Limited Pak Suzuki Motor Company Limited Chemicals BOC Pakistan Limited Agritech Limited Clariant Pakistan Limited Dawood Hercules Chemicals Limited + Dewan Salman Fibre Limited Engro Corporation Fauji Fertilizer Company Limited Lotte Pakistan Limited Sardar Chemical Industries Limited *** Sitara Chemical Industries Limited United Distributors Pakistan Limited ICI Pakistan Limited Wah-Nobel Chemicals Limited Fatima Fertilizer Company Balance carried forward 2.200.

315 - A+ A+ AA- A AA- BBB+ AAA 21.430 244.326 9.179 2.000 1.651 International Industries Limited 166.199 220.026 2011 2010 Market Values Rupees in ’000 3.910 2.722 119.000 21.244 668 2.246 Huffaz Seamless Pipe Industries Limited 4.553 2.350 Glaxosmithkline (Pakistan) Limited 175.622.000 1.540 14.258 3.633 16.247 17.132.121 Pakistan National Shipping Corporation 9.336 4.238 100.133.954 48.871 24.974 562 2.146 11.316 516.518 International Steels Limited 145.620 538.315 4.353 253.371 16.354 1.114 20.446 *** Delisted companies FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .007 561 38.747 11 12.137 Forestry and Paper Security Paper Limited 4.637 213 12 12.528 Highnoon Laboratories Limited Otsuka Pakistan Limited 668 Sanofi-Aventis Pakistan Limited Searl Pakistan Limited Wyeth Pak Limited 46.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.957.147.000 321.555 218.153 270.000 498.017 4.943 7.237.840 1.261 22 35.449 1.461.417 Health Care Equipment and Services Medi Glass Limited *** 38 Pharma and Bio Tech Abbot Laboatories (Pakistan) Limited 51.308 Metropolitan Steel Corporation Limited Quality Steel Works Limited 13 Industrial Transportation Pakistan International Container Terminal Limited 15.137 221.252.459 74.778 22 49.711 22.580 3.197 169.212 150.020 25.000 184.781 135.000 186.682 68.486 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) Ordinary shares / certificates of Rs 10 each 652.201 3.265 22.650 Balance carried forward 5.990 106 11 12.141 22. 2011 163 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward 4.942 7.781 100.358 3.458 Ferozsons Laboratories Limited 27.114 46.638 4.635 48.571.670 3.437.000 52.679 10.080 4.484 Industrial Metals and Mining Crescent Steel & Allied Products Limited 19.967 10.424 38 34.458 4.171.871 Beverages Shezan International Limited Murree Brewery Company Limited 5.957 4.200 17.098 47.033 68.023 48.811 117.236.547 25.

319 Tri-Pack Films Limited 5.162 Balance carried forward 5. certificates of modarabas and units of closed end mutual funds having Nil carrying value which have not been disclosed individually.957 4.663 19.435 4.946 4.569 5.197 AA AA A+ ** Shares / certificates of Rs 5 each ***Delisted companies Note: The Bank hold various delisted and non-traded shares.000 40.296 28.063 12.266 4. 2011 164 2011 2010 2011 Name of company / modaraba/ mutual fund 2010 At Cost Rupees in ’000 Balance brought forward 5.809.458 4.977 2011 2010 Market Values Rupees in ’000 4.120 Tariq Glass Industries Limited 373 Tobacco Pakistan Tobacco Company 46 29.419.500 26.346 2.946 Pak Elektron Limited 14.446 920 13 4.034 Media Media Times Limited 17 Household Goods Al-Abid Silk Mills Limited 4.366 General Industrials / Others VISA Incorporation .140 4.400.237.165 11.363 213 172 991 76.285 5.183 193.979 835.803 212. .026 Leisure Goods Grays of Combridge (Pakistan) Limited 3.959 15.000 51.148 2.599.274 4 9.705 400 225 127.916 244 22 2.438 29.000 1.000 102.113 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) Ordinary shares / certificates of Rs 10 each FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 40.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.223 162.353 169.410 Pakistan Services Limited 3 Noon Pakistan Limited 11.352 89 152 1.223 43.000 A A 2.384 - 177.411 2 847.525 Syed Match Company Limited *** 31 31 Thall Limited ** 16.396 2.399 206.089.506 1.000 102.035 225 127.067 1.500 26.000 255.784 218.789 Hashmi Can Company Limited *** 156 156 Merit Packaging Limited 768 Packages Limited 77.171.014 4.459 592.028 31 29 13.000 183.466 1.133.437.Class C Shares Baluchistan Particle Board Limited 127 127 Fatima Enterprise 1.789 1.169 25 770.514 Siemens Pakistan Engineering Company Limited 232.

500.000 ) ordinary shares of Rs 10 each First Capital Investment (Private) Limited * 150. 13.452 15.27 (2010: Rs 9.000) ordinary shares of Rs 10 each The bank holds 0.000 750 1.785) ordinary shares of Rs 100 each The bank holds 4.000 (2010 : 32.52) Period of financial statements: June 30.000 325.037 90.627 (2010 : 242.000 Not Applicable Not Applicable 5.88% (2010: 0.044) ordinary shares of Rs 10 each * Fully provided investments + Strategic investments 265.500 (2010 : 24.176 Not Applicable .99% (2010 : 15.500.23 (2010: 172.22%) of investee s capital Chief Executive: Mr.750 Market Values Rupees in ’000 Not Applicable Medium to Long Term Rating Assigned (where available) FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2011 2010 2011 2010 2011 2010 125.000 (2010 : 810. 172.500 125.000 ) ordinary shares of Rs 10 each The bank holds 17.000 (2010 : 150. 2011 (audited) Credit Rating Information Services Limited (Bangladesh)* 260.61) Period of financial statements: June 30. Details of investments in unlisted companies are as follows: Quality of Available for Sale Securities At Cost Rupees in ’000 Al Hamra Avenue (Private) Limited + 28.500.938 243.000 2.687 819. 2010 (audited) Pakistan Export Finance Guarantee Agency Limited * 568.000 750 1.000) ordinary shares of Rs 10 each Himont Chemical (Private) Limited * 810.000 (2010: 1.500 Not Applicable Not Applicable Not Applicable Not Applicable Not Applicable AM4+ AM4+ 2.000) ordinary shares of Taka 10 each Khushhali Bank Limited 1.500. 9.375.000) ordinary shares of Rs 10 each Sukhchayn Gardens (Private) Limited + 218.00 (2010: 12. Habib Ahmed Break up value per share: Rs.000 (2010 : 12.000 325.812. Shujaat Azeem Break up value per share: Rs.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.364 5.452 15.97% (2010: 5. Muhammad Ghalib Nishtar Break up value of share: Rs.000 (2010: 260.037 100.500. 2011 165 2.000 ) ordinary shares of Rs 10 each DHA Cogen Limited * / + 32.88%) of investee s capital Chief Executive: Mr.52%) of investee s capital Chief Executive: Mr. 2011 (audited) Al Hamra Hills (Private) Limited * / + 12.500.044 (2010: 568.687 831.18) Period of financial statements: December 31.

763.680 4.000 24.533 24.177 Azgard Nine Limited Maple Leaf Cement Factory Limited Nishat (Chunian) 15% NVCCP Chenab Limited 8.750 - 1.097 125.099 9.490 244.040 103.75% Cumulative 244.368 47. 2011 166 3.000 2.096 Quality of Available for Sale Securities 2011 2010 Medium to Long Term Rating Assigned (where available) D D SD BB Share of Rs 10 each 2.490 22.630 315.969 8.a. 47.998 1.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.425 22.630 314.249.763.000 4.248 Convertible 15% Cumulative - - 79.430. Preference shares — Listed companies 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 Name of company Rate 2011 2010 At Cost Rupees in ’000 2011 2010 Market Values Rupees in ’000 117.522 126.25% p.463.000 9.816 .249.95% Cumulative 22.

000 75.13%) of Class A Convertible preference shares in investee s capital 25.5% plus 10.500.000 2. Preference shares — Unlisted companies 2011 2010 Name of company Rate 2011 2010 At Cost Rupees in ’000 2. Sheikh Naseem Ahmad The bank holds 10% (2010 : 2.302 7.700. Naseem Saigol The bank holds 17.50% Cumulative (2010: 17.500. 2011 167 4.000 .000 100.000 Fazal Cloth Mills (Private) Limited Chief Executive: Mr.000 2011 2010 Market Values Rupees in ’000 Not Applicable Quality of Available for Sale Securities Medium to Long Term Rating Assigned (where available) AAFAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Share of Rs 10 each 2011 2010 7.700.13% 9.00%) of investee s capital 6 months KIBOR Pak Elektron Limited Chief Executive: Mr.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.302 75.000 25.000 Not Applicable A A 100.

758 469.22.200 61.646 105.790 A(f) A+(f) A+(f) AA+(f) AM2A+(f) AA+(f) A+(f) A(f) BBB(f) AM2 AM2AM2AM2- A(f) A+(f) AA+(f) AA-(f) A(f) BBB(f) 3-Star 3-Star 4.330.887 2.715 4.634 17.046 6.000 1.029 281.262 22.102 1.000 200. 2011 168 5.000 3.310.800 3.776.230 100.006.000 3.888 100.932 40.994.211 52.479 1.609.849 100.155 2.000.003.374 420.000 5. Details of investments in open ended mutual funds: Quality of Available for Sale Securities 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 At Cost 2011 2010 2011 2010 2011 2010 Name of company / modaraba/ mutual fund Market Values Rupees in ’000 Rupees in ’000 Open ended Mutual funds Faysal Income Growth Fund Faysal Savings Growth Fund Faysal Islamic Savings Growth Fund Faysal Money Market Fund JS KSE 30 Index Fund JS Large Capital Fund+ PICIC Income Fund First Habib Income Fund IGI Income Fund HBL Income Fund KD Income Fund ** Al-Meezan Mutual Fund Faysal Balanced Growth Fund **/+ National Investment (Unit) Trust LOC Holder’s Fund*** National Investment (Unit) Trust *** NIT Income Fund *** Medium to Long Term Rating Assigned (where available) 1.000 100.873.037 6.200.107.499 10.739 588.911 ** Units of Rs 50 each *** Units of Rs 10 each + Strategic investment .064 826 80.709 27.314 430.374 2.873.000.292 1.228 425.503.455 1.789 1.939 21.000 200.100.892 2.763 1.203 5.263 80.000.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.876.189 3.089 2.887 1.530 4.826 79.301.409 1.931.356 20.900 4.906 197.278 218.757 143.670 1.771.699 3.000 20.000 143.110.142.978 53.000.310.000 50.702 27.000 2.289 1.496 68.107.292 .000 208.227 221.009 50.888 35.198 851 99.000 195.000 208.327 100.043 2.

18% of principal in the first 54 months.598 111.493 99.937 268. Habib Jahangir Siddiqui & Company Limited .489 118. 5. Secured Quality of Available for Sale Securities At Cost Rupees in ’000 Azgard Nine Limited 31.615 AA AA 24. remaining 99.with floor-3.000 each Mark-up: Different spread over six months KIBOR rate in different years with no floor and cap Redemption: 12 unequal semi annual installments.362 90.920 25.071 252.760 60.379 Medium to Long Term Rating Assigned (where available) D A FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2011 2010 2011 2010 2011 2010 66. Ahmad Shaikh Bank Al-Habib Limited . Abbas D.Fourth Tranche 10.143 .955 49.000 (2010: 10.5% above six months KIBOR.000 each Mark-up: 1.25% per annum in first 78 months.82% in equal installments in 60th & 66th month Maturity: May 2012 Chief Executive Officer: Mr.640 (2010: 31. cap-16% per annum Redemption: 0.111 50.169 200. balance in 3 semi annual installments of 33.149 AA AA 209. Term Finance Certificates .ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 5. Maturity: July 2012 Chief Executive Officer: Mr.000 each Mark-up: 2. Munaf Ibrahim Balance carried forward 118.Unsecured 20.50% & cap-10% Redemption: 0. 2012-2015: 47% and 2016-2017: 53% of the outstanding amount Maturity: September 2017 Chief Executive Officer: Mr.Listed. 2011 169 6.000) certificates of Rs.489 Market Values Rupees in ’000 114.5% above six months KIBOR floor-6 % per annum.25% each starting from 84th month.000) certificates of Rs.640) certificates of Rs.000 (2010: 20. 5.

cap-16% Redemption: Equal Semi annual installment with a grace period of 1 year Maturity: January 2014 Chief Executive Officer: Mr.001 67.25% each starting from 84th month.441 500.071 157. 5.535) certificates of Rs.000 each Mark-up: 9.00% above six months KIBOR rate.468 A+ A+ 524. Maturity: August 2012 Chief Executive Officer: Mr.204 .000) certificates of Rs.000 (2010: 20.937 166.162 687.000 (2010: 50.25% per annum in first 78 months. balance in 3 semi annual installments of 33. Bokhari Financial Receivables Securitization Company Limited 20. Atif R.000 each Mark-up: 8.000 each Mark-up: 2.000 (2010: 20.Second Issue 20.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.603 AA AA 48.000) certificates of Rs. Atif R. 2011 170 Quality of Available for Sale Securities 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 At Cost 2011 2010 2011 2010 Market Values Rupees in ’000 Rupees in ’000 Medium to Long Term Rating Assigned (where available) Balance brought forward United Bank Limited .371 639.990 AA AA 99.753 66.45% per annum Redemption: 0. 5.143 232. Suleman Kanjiyani Balance carried forward 209.522 252.First Issue 50.49% per annum Redemption: At maturity Maturity: March 2013 Chief Executive Officer: Mr.978 95. floor-8%.169 252. Bokhari United Bank Limited .250 268. 5.093 200.974 99.201 47.025 87.

000 each Mark-up: 2.503 Medium to Long Term Rating Assigned (where available) D BBB - 12. Shams ul Afreen Pakistan Mobile Communication Limited Nil (2010: 3.233 (2010 : 70.000) certificates of Rs.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.053 687. 2011 171 Quality of Available for Sale Securities 2011 2010 At Cost Rupees in ’000 Balance brought forward Telecard Limited 70.204 123.371 96.000) certificates of Rs. Muhammad Rafiquddin Mehkari Balance carried forward 524.75% above six months KIBOR rate. with no floor and no cap Redemption: Ten unequal semi-annual installments commencing 18 months from the last date of public subscription. 5.50% above six months KIBOR rate.85% above six months KIBOR rate.233) certificates of Rs. with no floor and no cap Redemption: Six equal semi-annual installments commencing 54th months from the date of issuance.215 843. Maturity: May 2015 Chief Executive Officer: Mr. 5.162 129.000 each Mark-up: 3. with no floor and no cap Redemption: 0.790 639.161 789.000 each Mark-up: 1.944 597.480 - 12. Maturity: May 2013 Chief Executive Officer: Mr. Rashid Khan Askari Bank Limited . 5.3% of the principal amount in the first 90 months and remaining in the 96th month of issue date Maturity: October 2013 Chief Executive Officer: Mr.478 A+ A+ 14.850 .441 129.053 2011 2010 2011 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Market Values Rupees in ’000 500.Second Issue Nil (2010: 3.970 - 14.665 AA- AA- 653.

215 877.000) certificates of Rs.215 843.919 200. with no floor and no cap Redemption: 6% semi annually in first 30 months. 5. Term Finance Certificates . balance of 33.248 Medium to Long Term Rating Assigned (where available) AA AA - 29.840 699.850 3. Maturity: February 2013 Chief Executive Officer: Fawad Ahmed Mukhtar Bank Alfalah Limited .000 199.640 201. Yousuf Farooqui Bank Alfalah Limited .000 each Mark-up: 1. Chief Executive Officer: Mr.161 822.000 each Mark-up: 2.Second Issue Nil (2010: 6. 5.919 200.50% above six months KIBOR rate.840 199.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.000 597.000 each Mark-up: 1.000 (2010: 40.584 AA- AA- 653. with no floor and no cap Redemption: 0.50% above six months KIBOR rate with no floor and cap Balance carried forward 500. balance in five stepped-up semi annual installments commencing from the 36th month from the issuance date.Unlisted Dewan Cement Limited (formerly Pakland Cement Limited) The TFC has not currently been issued.989 .000) certificates of Rs. 5. Dewan M.640 201. 2011 172 Quality of Available for Sale Securities 2011 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 2010 At Cost 2011 2010 2011 2010 Market Values Rupees in ’000 597.25% semi annually in first 78 months.989 AA- AA 699.931 - 29.50% above six months KIBOR rate.944 3.25% each starting from 84th month. Maturity: November 2012 Chief Executive Officer: Mr.161 789.123 500. Atif Aslam Bajwa 653.584 Not applicable D D 7.Fourth Issue 40.150 Rupees in ’000 Balance brought forward Pak Arab Fertilizers Limited Nil (2010: 691) certificates of Rs.

000 (2010 : 4.000) certificates of Rs.55) Period of financial statements: December 31. Chief Executive: Mr. 5. 104.000 Not Applicable 108.919 2011 2010 2011 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Market Values Rupees in ’000 200.495 Not applicable 710.000 Not Applicable AM2AM2- 45.ANNEXURE I TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. Maturity: September 2017 Chief Executive Officer: Mr. Salman Haider Shaikh Break up value of share: Rs. Chief Executive: Mr. Details of investment in a Subsidiary: Faysal Management Services (Private) Limited 1. Yousuf Farooqui 699.000 45.25% each starting from 84th month.000 each Mark-up: SBP discount rate less 2% p.052 12.500. 2011 45.000 45.000 108. 2011 173 Quality of Available for Sale Securities 2011 2010 At Cost Rupees in ’000 Balance brought forward Redemption: 0.989 8.a.85) Period of financial statements: December 31. 2011 + Strategic investments 108.840 699. with 6% floor and 12% cap Maturity: June 2008 Chief Executive Officer: Mr.640 201. Nauman Ansari Break up value of share: Rs 111. Details of investment in an Associate: Faysal Asset Management Limited 4.500.989 Medium to Long Term Rating Assigned (where available) 11.892 712.080. Dewan M.640 201.080.000 (2010: 10.26% semi annually in first 78 months.000) ordinary shares of Rs 100 each The bank holds 60% (2010: 60%) of investee s capital.67 (2010: Rs 17.000 - - 9.000 108.000) ordinary shares of Rs 10 each The bank holds 30% (2010: 30%) of investee s capital.000 - - . 16.414 200.000 (2010 : 1.67 (2010: Rs. Atif Aslam Bajwa Dewan Sugar Mills Limited 10. balance of 33.

Block-cfaisalabad.8 to these financial statements.dinbahar Colonycharsada Road. Peshawar H.015 400 561 549 97 292 538 170 165 102 223 139 234 67 178 168 85 149 100 79 169 100 91 148 81 94 122 297 200 273 94 110 145 99 103 354 381 83 179 115 31 72 16 35 22 24 65 18 24 20 23 20 23 - 557 1. Islamabad Nisar Ahmed Tahir A Khan Muhammad Zaki Nizhat Shahban Amjad Awan Salman Rahim Zainab Omar 476448731 1730119089019 1730155595965 1730191151395 1730198978277 3120202886869 3130114258699 3130323934399 3130324183197 3130324420963 3130324551821 3130350298683 3210116668099 3210253229581 3310006607065 3310006730739 3310007199707 3310009205841 3310009732851 3310011624703 3310012429475 3310013745649 3310015659383 3310026630877 3310036630497 3310039780497 3310053534085 3310059980415 3310074145851 3310075047599 3310079940295 3310080580971 3310081961407 3310086092763 3410107105985 3410123089441 Abdul Aziz Hawas Khan Muhamamd Afzal Iqbal Shahban A B Awan S.305 1. Near Aziz Fatma Hospital.141 662 567 985 568 529 1.036 82.015 561 549 83 285 500 166 158 98 199 45 213 44 96 157 78 95 78 34 125 50 36 32 36 113 256 181 236 15 36 64 40 310 337 167 98 27 72 16 23 13 1 55 7 1 23 6 - 539 993 1.khan H # 2/d St # 6 Block-bgulshan-e-us Man R.st#9. 2011 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. 2011 as referred in note 11.peshawar H# 289.025 6.garden Colony. Ellahi Baksh Muhammad Sharif Shah Mohammad Ramzan Rana Nazir Ahmed Jam Bahar Noor Ahmed Abdur Rasheed Ghulam Haider Khan Syed Ijaz Hussain Riaz Ahmed Muhammad Siddique Muhammad Sadiq Ghulam Nabi Mumtaz Ahmad Allah Ditta M Mazhar Akhtar Muhammad Aslam Asghar Ali Khalid Pervaiz Talib Hussain Muhammad Ibrahim Muhammad Yousaf Khawaja Sardar Ahsan Kareem Abdul Ghafoor Mehfooz Ahmed Chaudry Abdul Aziz Mushtaq Ahmed Shad Chaudhry Niaz Muhammad Muhammad Munir Bhinder 48.st# 2.mohalla Afgahn Colony. Name of the borrower 2 Address 3 Name of Individuals/ Partners/ Directors/NIC 4 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Other Total Financial Reliefs (10+11+12) provided 12 13 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 1 ---------------------------------Rupees ’000---------------------------------1 Sun Tv 6th Floor. Razia Sharif Plaza. P-c No. Mohallah Bhindran P.faisalabad P-277 St# 02 Shadab Cly Jhang Rd Faisalabad P.y Khan0300-8674134 Pakistan Street Shahid Basti Amantali Tamirmillat Road H.a.167 703 1.o.160 548 622 956 596 616 1.000 2. Fateh Pur Kamal Teh Khanpurdistt R.201 12.201 23. S. Hajwari Town Near Dispancrymillat Road Faisalabad H # 1008 St # 1 Gur Unanak Pura Opp Gc University Ground 423-p Iqbal Town Ghulam Muhammadabad House# 37-h Raja Road.bjaranwala Road Teh Distt Faisalabad.#64/p Sche Me #3block Y Rahim Yar Khan Basti Haji Din Muhammad Chechar Ghazi Pur Zahir Peer Teh & Dist Ryk Pakistan H#147 Moh Aqadriashahi Roadrahim Yar Khan H # M -29 St # 12.560.045 611 514 973 576 611 513 1. St # 2. Gulistan Colony Faisalabad 23-y Saif Ullah Shaheed Rd Madina Town Faisalabad P-466 Mohallah Yasrab Colony St# 4 Nr Najam General Store Faisalabad P-96 St#08 Rasheed Nagar Nisar Colony Faisalabad P-890.sec# F 8phase 6 Hayatabad Peshawar H # Ca/366 Faiz Colony Model Town-a Bahawalpur P.479 670 453 438 591 789 379 502 963 494 410 836 452 415 876 489 399 825 430 499 391 911 522 887 430 492 811 474 493 995 1.123 428 509 861 561 545 1.396 506 740 664 .r.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.no 259 St 10 Sector L-1 Phase 4 Hayatabad Peshawar House No.o Aroop Tehsil & District Gujranwala 429 708 1. Rahim Saleem Omar Jan Qaisar Khan Haji Atta Muhammad Fazal Hameed Noor Mohammed Khan Ch.208 722 1. 09. Blue Area.y. 2.222 Lasani Town Sargodha Road Faisalabad House#15 Sheet # 27 Model Colony P-140 Imran Road Khayyaban Colony#2 Near Lasania Hotel Faisalabad H# 1069/29 St#2 Near Pasha Medical Store Dastagir Pura Faisalabad Chak#226 R.dalmiya Mujahidabad Colony Nr Navel Colony H#123 Block# 45 D. Street No.059 651 560 931 546 504 1.479 670 453 438 591 789 379 502 963 494 410 836 452 447 876 489 384 825 430 499 391 911 522 887 428 493 825 474 499 995 1.st#09 Mohallaislamia Park Faisalabad Chak No.352 0 728 647 429 708 1.349 1.979 836 611 536 790 834 592 546 1.788 10.g Khan P-43 Altaf Gunj Behind Chaudhary Corporation Jhang Road Faisalabad H# P-25 St # 1 Chaudhry Street Gulfishan Colony Jhang Metro Pol Floor Mill Faisalabad House#p-318.001 552 385 861 517 542 504 1.788 10.824 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Johan Ernst De Wet Muhammad Shiraz Khan Muhammad Riaz Shahid Israruddin Jamal Jehangir Zeeshan Ali S/o Chaudhary Ellah Bakhsh Iftikhar Hassan Shah Abbad Ali Rana Hamid Ali Jam Riaz Ahmed Gaanga Qabool Ahmed Iftikhar Ahmed Khan Ghulam Nabi Khan Syed Istqlal Abbas Naqvi Aleem Ahmed Muhammad Khalid Siddiqi Jameel Ahmed Muhammad Aslam Faraz Ahmad Muhammad Gulzar Muhammad Shahab Ata Ur Rehman Naeem Asghar Tariq Javaid Munawar Hussain Muhammad Abbas Chaudhary Muhammad Akhtar Hamid Javed Butt Shah Alam Karim Ghulam Farid Ali Hassan Muhammad Saleem Muhammad Ishfaq Muhammad Nawaz Tahir Nadeem Chaudhary Ijaz Ahmed Fourth Floor Apartment No 5 Park Lane Tower Tufail Rd Nr Cantt Plaza Lahore Po Ashrafia Colony. H No 498 Mian House Ali Block West Canal Road Amin Town Street Nathu Juttwali Noshera Roadmohalla Chah Bawian Walagujranwala. No.b Malkhan Walaakhana Khas Tehsil And Distt Fsdfareed Gang Faisalabad Chiban H#1209-p.835 29.017 840 618 540 814 928 613 569 1.

5 Shadab Colony Temple Road Lahore C-5 Shadab Colony Temple Road Lahore 496 .381 452 480 490 459 444 781 653 73 8 133 4 68 258 72 115 85 169 339 312 12 195 43 121 82 38 40 6 141 166 111 157 124 10 236 259 95 3 79 130 283 83 196 35 191 7 22 12 18 35 34 224 1 19 84 15 104 142 39 14 23 12 5 13 549 417 714 408 570 965 576 561 500 510 816 1. Mughalpura 9/10.219 404 646 489 516 535 934 975 331 562 587 533 539 527 506 1. Madina Street 34-a Shama Park Chowk Yatim Khana 34-a House 453 94-a G-11/3 Islamabad 152 F Model Town Lahore House# 49-b. Street# 3.p. Pakka Gharahtehsil & Distt Sialkot Khadim Ali Road Mohala Muslim Pura Near Hari Masjid House 559 Street 68 I-8/3 Islamabad H No 403 Block 3 Sector 1 C-i Town Ship Lahore 856 L Block Johar Town Lahore Aa 474 Dha Lahore 750-z Dha Lahore 170-bb Block Phase 4 DHA Lahore H# 49-c Angoori Bagh Scheme 1 Baghban Pura Cant Lahore 9 357 Jahanzeb Block Allama Iqbal T Lahore B-84 Block-lnorth Nazimabadkarachi 288.282 1.lahore H# 565-b A-1 Sector Town Ship 537 R Block Model Town Lahore H #12 Nausherwan Street Shahdab Colony Temple Road Lahore H #56/a Sector A 1 Township Govt Emp Housing Soceity Sector A1 425 First Floor Mehmood Rd New Samanabad Lahore H#9 Karim Pa Rk Kasurpura Block-2 Cc 574 Dha Lahore 3410127050547 3410156511385 3410178931901 3410198307679 3420103630853 3420121056745 3420237023351 3440210075619 3440320779803 3460323018281 3460323187877 3460323263821 3460323461761 3510206325615 3520015163743 3520110333453 3520114568449 3520115877511 3520115877603 3520116274517 3520116312165 3520116769953 3520120133547 3520137620693 3520149613237 3520159207643 3520160092767 3520183923029 3520203210445 3520207647635 3520207647635 3520207881885 3520208831885 3520217181929 3520217288953 3520219384775 3520220871769 3520221767819 3520222215425 3520223476257 3520224098187 3520226026589 3520226208637 3520227686033 3520229354941 3520237819795 3520239317889 Malik Taj Din Abdul Ghani Nasrullah Khan Muhammad Naseem Abdul Aziz Mohammad Imtiaz Haji Muhammad Bashir Khawaja Ghulam Shabi Syed Madad Ali Shah Muhammad Yaqoob Butt Kh Mansoor Ahmed Muhammed Amin Niaz Ali Anayat Ali Shah Nawaz Muhammad Ayoub Khan Muhammad Ali Shah Bukhari Syed Azher Ali Syed Azhar Ali Muhammad Naseem Nazir Baig Shah Zaman Khan Awan Abdual Sattar Abdual Mirza Mehmood Baig Abdul Rasheed M Adress Sardar Ahmed Khan Muhaamad Zaheer Ch Muhammad Hussain Maqbool Ahmad Khan Maqbool Ahmed Khan Chaudhry Ghulam Rabbani Ghaudhry Ghulam Hussain Shahid Farooq Tabarak Ali Mushtaq Ahmed Malik Fazal Din Nazir Ahmed Muhammad Shafi Rana Nazir Ahmed Qazi Altafullah Malik Muhammad Rashid Syed Imdad Ali M Asghar Muh Hussain Muhammad Siddique Butt Muhammad Anwar 476 408 581 404 502 707 504 446 415 341 477 907 373 451 362 395 453 896 935 325 421 421 422 382 403 481 1. Syed Madad Ali Shahghanian Road.052 566 682 546 1.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.591 635 633 582 631 567 921 881 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .y-block Dha Lahore Ghosia Angoori Park 9/10. St Nazran.219 516 646 547 516 536 995 948 527 581 587 536 544 532 641 1. B.F Bloc K Johar Town 10. Near Cng.3rd Floor Pace.main Boleva-rd Gulberg Lahore H No -17-a-2 Gulberg 3 Near Sngpl Lahore H 9 Blk L Phase I Dha Lahore House # E-466/2c Hassan Street New Iqbal Park Eden Cottage Road Lahore Cantt C .252 561 616 536 629 635 618 521 1. Street#25 Rehmat Puramahmood Booti Bund Road Lahore 31/4-c Stret No 8 Near Al Basreet Public High School Al-noor Town Walton Cantt Lahore 951-zd.alahore Shop#16.okhawaja Mansoor Ahmed Houseparis Road Sialkot H # 15/260. 1 Name of the borrower 2 Address 3 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Total (10+11+12) 13 175 ---------------------------------Rupees ’000---------------------------------38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 Muhammad Rasheed Asif Mehmood Fiaz Ahmed Muhammad Shoaib Mohammad Hafeez Butt Muhammad Awais Haji Mohammad Ramzan Khawja Hasan Omair Shahbir Syed Tanveer Hussain Rahim Kausar Butt Amir Mansoor Qaiser Shehzad Nazir Ahmed Anayat Mehmood Muhammad Siddique Nasir Khan Shahid Mazhar Ali Shah Bukhari Syed Azfar Ali Syed Tahir Ali Muhammad Adil Naseem Nadeem Baig Shahraz Khan Awan Aslam Abdul Sattar Sohail Mehmood Mirza Muhammad Tahir Muhammad Ilyas Asim Hassan Khan Muhammad Naeem Javed Iqbal Mansoor Ahmad Khan Mansoor Ahmed Khan Chaudhry Ghulam Hussain Aamir Hussain Chaudhry Waqas Shahid Ghulam Mustafa Waheed Ahmad Malik Hadi Hussain Barkat Ali Muhammad Rafi Qaisar Nazeer Qazi Tammam Abdullah Haroon Rashid Syed Haq Nawaz Munir Ahmed Iftikhar Ahmed Muhammad Ijaz Butt Muhammad Osman Tasaddaq H # 31-3/b Allah Udin Road Linkroad Sarwar Rd Lahore H-10/6 Mansoora Multan Road Block-E Lahore Galla School Walakashmir Colony # 02 Gujranwala.299 1.572 482 514 502 482 492 815 877 476 408 581 484 502 707 504 446 415 341 477 907 383 451 362 395 453 873 834 435 421 421 422 382 403 483 1.hassan Town.381 442 472 477 492 444 781 653 97 58 133 58 79 275 72 115 104 174 343 312 87 195 74 121 83 122 114 81 160 166 114 162 129 112 253 300 106 109 61 103 105 91 130 290 97 203 109 210 89 115 92 103 93 140 228 58 56 46 111 11 46 113 18 22 26 31 149 44 37 104 46 13 36 30 573 524 714 598 581 982 576 561 519 515 820 1.h. Multan Road Lahore H-38 Ilyas Colony Muslim Town Wahdat Roadnr Butt Sweets Lahore 175 Housing Soci Pcsir .no # 346-c Block Satellite Town Moh Islam Nagarsaboowal Road Gujrat Shaheen Chowk Moh Zafar Colony Gujrat House # 12/92 Charaaghpuralalamusa Teh Khariandistt Gujrat Pakistan House No 44 Sweet Homes Model Colony Karachi S/o.211 541 3 346 97 0 599 521 1. Azizabad Colony Shah Faisal Road 43 Model Town Sialkot Near G. NO. 2011 Name of Individuals/ Partners/ Directors/NIC 4 Other Financial Reliefs provided 12 S.059 585 689 643 1.046 952 342 489 453 500 499 378 391 769 444 486 497 1.046 952 342 346 97 378 391 769 444 486 497 1. H.

lahore H3 239.941 1.666 520 614 671 633 568 3. House#06. Shad Bagh Lahore Faseeh Road 128-c Islamia Park Near Poonch Road 128-c H#56. Kashargunj Saeed Park. B-block.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.street#06. 1 Name of the borrower 2 Address 3 Other Financial Reliefs provided 12 Name of Individuals/ Partners/ Directors/NIC 4 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Total (10+11+12) 13 ---------------------------------Rupees ’000---------------------------------85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 House No:72-j Gulberg-iii.944 811 626 1.#31-s Tariq Road Islamiapark Lahore H #50/l St # 5 Model Colonygulberg Iii Lahore 48 B New Shalimar Town Gulshan Ravi Nr Super Mkt H # 148 Block C Model Town Lahore Block No3 House No3 Karim Park Lahore H # 15 Stree # 86 Chah Pichwarajanazgah Mozang Lahore H#19. Qarshi Dawa Khana 19 Multan Road Multan H No 140 Block B Overseas Pakistan Foundation Raiwand Road Lahore 6-indus Block Green Fort Ii Lahore 215 D 2 Model Town Lahore Lahore House 592 Street 13 Octori Post 22dhamail Road Rawalpindi H#19-m St.# 40-c.moh Ayoob Roadshad Bagh Lahore 03.353 1.902 1.563 1.sabza Zar Multan Road Lahore 7 H 2 Wapda Town Lahore Huma Block 12-a Allama Iqbal Town Lahore H # 177 A Ahmad Block New Garden Town Lahore H No 37 Choudry Park No 2 Amir Rd Shad Bagh Nr Three Star Hotel Lahore H 42/2 St 95 Makhan Shah Chah Miran Lahore 187 Punjab Govt Housing Societylahore Town Ship Lahore Karim Block 216 Allama Iqbal Town Lahore H# 12.009 538 553 517 756 565 391 521 426 489 457 491 422 435 372 492 432 799 382 425 688 397 444 967 460 453 414 384 643 586 678 772 655 431 495 676 597 261 764 532 1. 2011 176 S.241 413 490 483 490 460 2.400 1. NO.street# 10meraj Colony Nawab Puraichra Lahore H # 354-b Shah Rukne Allam Colonymultan Chah Aamb Wa La Lahori Post Office Gailay Wala Tehsil & Zila Lodhran 21/a Grained Market Multan Near Mda Chowk.241 413 490 483 490 460 2.027 634 682 611 761 614 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Shahdab Colony Mdachowk Multan 1188/5 Muhallah Khoti Kalian Das St Sindhi Shah Bukhari Nishat Road Multan 544-b Mumtazabad Multan 544-b Mumtazabad Multan 544-b Mumtazabad Multan Gill Cotton Factory Aukanwala Road Chichawatni Ward No 16 Muhallah Koralitehsil Gujar Khan Ashfaq Manzil Jarahi Stopnear The Educators Adiyala Roadrawalpindi House 593/w 8 Muhammada Abad Westr Rawalpindi H #cb-830 Lane #5 Peshawar Road Rawalpindi H # 311.751 833 402 489 488 472 489 147 205 85 160 108 104 92 249 129 208 227 335 160 86 153 163 83 257 116 71 105 121 154 278 264 132 133 134 109 374 126 94 425 107 107 188 107 61 649 194 129 107 107 289 79 47 30 25 16 54 33 57 60 18 17 36 47 103 86 16 46 538 726 558 649 595 620 530 684 501 700 659 1.ali Raza Muhammad Ashfaq Ghulam Haider Mohammad Yaseen Manzoor Hussain Abdul Jalil Munshi Khan Mohammad Shafi Mohammad Shafi Ghulam Sarwar Malik Muhammad Yaqub Sheikh Shees Ahmed Sh M Hafiz-ur-rehman Muhammad Azraan 391 521 426 489 457 491 401 435 372 492 432 799 382 465 688 397 444 967 460 384 468 424 643 586 678 772 655 431 486 1.134 542 565 841 560 527 1.178 555 386 577 534 767 864 933 806 756 565 501 1.118 540 506 838 546 527 1.592 777 532 1. Tahir Ahmed Munir Syed Nisar Mehdi Taqui Muhammad Nadeem Babar Ali Salman Ahmad Saleem Muhammad Muhammad Riaz Hassan Muhammad Shahzad Muhammad Asif Bilal Bhatti Muhammad Saeed Khan Muhammad Ismail Khalid Mehmood Jahanzeb Sultan Naseem Iqbal Farooq Ahmad Khan Farooq Ahmad Khan Farooq Ahmad Khan Ali Raza Gill Chaudry Rashid Mehmood Raja Anjum Ashfaq Muhammad Haseeb Tahir Yaseen Raees Ahmed Fahad Jalil Muhammad Jamil Khan Mohammad Aamir Tahseen Mohammad Aamir Tahseen Malik Muhammad Ashraf Malik Kamran Saqib Naveed Ahmed 3520240310339 3520246008109 3520246576789 3520249306579 3520254830477 3520256196189 3520257319653 3520257664909 3520258128945 3520258188341 3520258428177 3520259995155 3520276504867 3520283095225 3520287180668 3520288587223 3520288587281 3520292493253 3520292652955 3520292789815 3520293012045 3520294761299 3520295351221 3540431394653 3610387834277 3620318101131 3630222154357 3630237833413 3630249270385 3630279048289 3630279048289 3630279048289 3650143929077 3740183379221 3740306540665 3740503038093 3740503909053 3740504315563 3740504477487 3740506407121 3740519041849 3740519041849 3740519745363 3740531411701 3740535488865 3740536327081 3740538711983 Khalid Mujeeb Pervai Muhammad Bashir Malik Fazal Hussain Chaudhry Muhammad Muhammad Masoud Muhammad Younas Mugal Abdul Haq Raja Masood Ahmed Shafiq Ur Rehman Muhammad Iqbal Butt Muhammad Latif Muhammad Sadeeq Muhammad Shafie Ch Muhammad Iqbal Ahmed Ijaz Sheikh Noor Ahmed Munir Syed Khadim Hussain Muhammad Sharif Muhammad Munir Mian Muhammad Jahangir Muhammad Usman Main Muhammad Sharif Muhammad Sharif Muhammad Qasim Bhatt Sohbat Khan Muhammad Shafi Muhammad Yaqoub Sultan Ahmed Khan Chaudary Muhammad Yaseen Abdul Razaq Khan Abdul Razaq Khan Abdul Razaq Khan Pervaiz Gull Ch. St.598 1.dhoke Mustaqeem Peshawarroad Rawalpindi Bunna Mohra Khota Lalan Po Box Attock Oil Comp Morgah Rawalpindi House No 98 A Ghakhar House Rahat Colony Kamal Abad Rawalpindi H#13-b Toghi Housing Scheme Quetta H#13-b Toghi Housing Scheme Quetta H# 3086 Near Cantt Hospital Bhoosa Mandi H# 145-b St# 03 Moh: New Abadi Mareer Hasan Rawalpindi 3rd Flr Amir Plaza Commercial Area Chaklala Scheme Iii Rawalpindi Sheikh Muhammad Shafiq-ur-rehman Sethi House M/1001 41 Amarpura Rawalpindi Sajjad Ahmed H#59 St#01 Krl Road Peer Jamshed Colony Near Krl Colony Rawalpindi Mohammad Awais Khalid Khan Mehar Mohammad Imran Naeem Fazal Hussain Muhammad Ali Usman Masoud Imran Younas Muhammad Asif Raja Tariq Masood Asim Shafique Rehman Iqbal Touseef Raza Zeeshan Sadiq Muhammad Anees Khalid Iqbal Javeria Ahmad Sh.666 520 505 653 525 507 3.224 576 557 576 565 797 864 942 904 788 565 622 676 597 635 890 626 1.751 833 472 489 488 472 489 132 205 57 158 77 25 12 249 114 201 221 319 158 27 150 149 83 211 95 2 76 72 124 278 255 34 101 134 14 339 343 352 34 94 425 107 14 170 14 13 602 176 38 14 28 284 46 38 21 11 2 14 33 38 1 1 21 34 28 50 1 30 523 726 521 647 555 527 415 684 486 693 653 1.

Block 4 F.048 432 907 1. 1 Name of the borrower 2 Address 3 Name of Individuals/ Partners/ Directors/NIC 4 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Total (10+11+12) 13 177 ---------------------------------Rupees ’000---------------------------------132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 Mohammad Shafique Numan Rasheed Mir Ather Sayeed Rana Muhammad Riaz Ahmed Nazir-ul-hameed Shahzad Ahmed Pannu Sheikh Asghar Ali Muhammad Arif Qureshi Shabbir Hussain Khalid Mehmood Rana Mian Naseer-ud-din Amini Sheikh Muhammad Amir Khaliq Dad Hamid Khan Asad Amir Khan Zeeshan Sarfraz Waseem Aziz Umrani Zafar-ud-din Faramosh Khan Salim Mirza Salim Akhter Adeel Ali Siddiqui Muhammad Shahzad Zaheer Ahmed Zahid Hussain Muhammad Naeem Sohail Ahmed Qureshi Anwer Ali Niaz Ahmed Khan Syed Shahid Masood Noor Muhammad Shahid Sawan Muhammad Waseemuddin Qureshi Mian Shakeel Ahmed Puri Syed Salman Mujtaba Naqvi Ali Ausat Naqvi Farida Wahid Syed Irshad Hussain Syed Muhammad Iqbal Karim Syed Abbas Haider Naqvi Muhammad Sohail Hussain Mohammad Waseem Ameen Mirza Shaikh Obaid Ur Rehman Syed Sajjad Haider Abdul Khalique Mohsin Raza Rajput House No Nw-700 A Block Said Pur Road Rawalpindi House 12-a/3 Block A Near Fatima Jinnah C Sattelite Town Rawalpindi House C-359 Moti Bazar Near Al Habib Market Rawalpindi F-833/13 Near Holy Family Hospital Satellite Town Rawalpindi House Bi-735 Street 2 Muslim Town Rawalpindi H# 6 Circular Evanue Safari Villas Rawalpindi H# A702.014 1. Lawrenceline R.areakhi.622 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .Johar Karachi Street#10 Fatima Jinnah Roadjunagarh House Karachi 3740545972661 3740546971067 3740549832587 3740556064683 3740559069999 3740560127999 3740565463299 3740568583177 3740573285759 3740578721077 3740588221199 3740594997099 3820111702477 3830226820931 3840294932953 3840376407421 4130394854357 4130473747711 4200013647707 4200022773021 4200070257191 4210106444801 4210108889305 4210113309867 4210114968029 4210115185245 4210117466571 4210117545055 4210119238133 4210120472175 4210125482655 4210128245991 4210138212001 4210141543691 4210152558885 4210155140711 4210176410030 4210185982587 4210193876965 4210197469153 4220103491775 4220107372707 4220107410661 4220109768521 4220110958365 4220134208825 4220134535641 Muhammad Haneef Rasheed Muhammad Mir Saeed Ahmed Rana Irshad Ahmed Maqtoob Ahmad Ghulam Mustafa Pannu Sheikh Taj Deen Iftikhar Ahmed Qureshi Sabir Hussain Mohammad Yaqoob Jamal-ud-din Amini Sh M Younas Ahmed Bashir Mohammad Khan Khalid Amir Khan Muhammad Sarfaraz Azizullah Faheemuddin Fazal Raheem Muhammad Mirza Sultan Ahmed Mohammad Ali Siddiqui Imam Uddin Shabeer Ahmed Mehboob Hassan Muhammad Ibrahim Hakeem Rasheed Ahmed Roshan Ali Ejaz Mohammad Khan Syed Hafiz Masood Rana Wali Muhammad Peer Buksh Muhammad Fasih Uddin Mian Allah Ditta Pur Syed Mushtaq Mujtaba Naqvi Mir Mohd Ali Naqvi Abdul Wahid Syed Anwar Hussain Syed Atta Karim Syed Raza Haider Naq Kousar Hussain Khan Haji Abdul Jabbar Aga Anis Mirza Shafique Ur Rehman Haider Hussain Abdul Latif Irshad Ahmed 592 436 1.e.karachi 28-al-jamil Square Block .block-c.b Area Blk-6.Ghaidry N .i.b.239 613 515 718 579 690 572 560 547 580 551 596 577 555 628 609 581 651 567 577 573 705 590 741 2. Colonykarachi Shop#b-16 Korangi K-areasector 36/a Korangi-5karachi H # 352 P. Anjum Nagar City Saddarcanttrawalpindi House 1030 B Block Satellite Town Rawalpindi Banglow # 554-f.g.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.a Bazar Rawalpindi H # 529 St # 13 Kamar Colony Tench Bhata Rawalpindi House# F-389 Green Lanegulraze Iii Rawalpindi House Eb54/60 Shaigan Colony Lalazar Rawalpindi House#635-36 Sector F-2 Labour Clnylandhi Karachi House# 352.b Colony Near Khatri Mosque Karachi Flat 918 Falak Naz Plaza Shahrah-e-faisal Karachi C-51 Staff Town University Campus Karachi H.133 494 468 833 481 424 564 479 569 413 421 433 389 396 408 397 427 423 473 420 503 438 398 457 451 423 597 1.o Mitha Lak Teh & Distt H# 1758/a Ward-g Ground Florwasim Akhter Plaza Umrani Mohallah Hyderabad A-75 Blk-19 Gulshan-e-iqbalnear Urdu Science Collkarachi H# A/26-6 Mangopeer Rd Pathan Colony Near Malang Hotel Khi-16 Karachi House No.727 475 404 369 391 397 408 498 872 853 507 1.h. Karachi Karachi Flat No D-18 Hanif Centre Block-b Nazimabad Karachi R-881 Bl#20f. N.434 597 1. A-4 North Karachi House #252 Block-q First Floor Nearumer Bin Khitab Masjid N-nazimabad Karachi.083 518 1. C-383 F.637 590 548 451 524 538 520 526 1. H-9/1 Street-18.264 668 597 1. Karachi House# D-34. NO.930 96 183 928 97 144 72 139 141 112 109 240 156 154 99 146 150 389 100 162 177 129 406 107 91 154 74 121 159 139 114 191 155 188 180 94 205 136 161 148 129 179 100 254 167 144 692 36 90 15 77 40 21 26 34 27 688 619 2.045 457 1.no A-17/1 Block-14 Gulistan-e.Nazimabadkarachi A-70 Paradise Housemetrowell Abul Hasal Roadkarachi Sultani Manzil Sultani Jewellersrs1 Sector 5.sector# 11-j.295 671 597 1. Neartaimora Masjid.655 608 548 522 530 538 520 622 1.009 661 1.b.model Colonynear Awamihotelkarachi A-149 Block 3 Gulshan E Iqbal Karachi House No 55/6 Sector 11-g Godra Camp New Karachi Karachi H# Sd-21 Blk A Ground Floor North Nazimabad Karachi House# N-1106.karachi Flat # 404 Blk L02 Sarah Excellency Sec 15c Gulzar E Hijre Sch 33 Karachi A-448.112 1. 2011 Other Financial Reliefs provided 12 S. Blk H.930 40 183 910 83 144 16 133 141 112 28 233 137 152 415 30 35 166 379 26 131 174 129 399 14 89 154 59 106 159 139 96 191 144 185 178 48 201 132 161 145 123 176 37 250 152 144 685 32 66 46 26 5 22 27 16 632 619 2.north Karachi. Nishter Bastip.018 963 1.105 990 659 2.b.(m)0300-2163076 H# B-21 Bl-c North Nazimabad Karachi House No L-83 Sector 11-c 1 Sir Syed Town North Karachi Karachi R-711 Sector 15-b Buffer Zone Karachi House No B-35 Block-4 Gulshan-e-iqbal Karachi H#b-12.c.232 500 513 718 560 675 572 560 529 580 540 593 575 502 624 605 581 648 561 574 510 701 575 741 2.615 592 436 1.n.424 509 1. Karachi H#sr 250-251.633 356 872 848 1.skarachi. St 42 G-9/1 Islamabad 228-y Street 14 Dha Lahore Cantt Lahore Jura Sakessa R P. N-153 Block-2p.area.045 457 1.i.north Anzimabad.727 475 404 360 391 397 408 498 872 853 507 1.083 342 872 813 1.133 494 468 833 485 424 564 479 569 413 421 433 389 396 408 397 427 423 473 420 503 438 398 446 451 423 597 1.

413 546 1.602 814 965 1. Sheet#24 Model Colonyfaryal School Karachi A-58.002 422 851 415 578 444 429 503 367 421 1. Plt # Jr6. G-28/2.299 660 681 1.area Karachi House E-42 Civil Aviation Colony Airport Karachi 4220134535641 4220137396927 4220137766719 4220142290055 4220143288109 4220148032563 4220149250957 4220149667069 4220154375265 4220156616707 4220161705805 4220164206473 4220168473741 4220170620387 4220171682221 4220173735997 4220182992241 4220185247029 4220192922677 4230107415973 4230107848681 4230108046929 4230108425623 4230109334297 4230110669631 4230110703003 4230128238437 4230131863579 4230132454226 4230136164349 4230144166279 4230147803743 4230149116543 4230152166533 4230164196747 4230169817048 4230180088867 4230180088867 4230186721155 4230188794770 4230190068753 4240119450911 4240193298097 4250121952277 4250133309053 4250164884937 4250177011693 Irshad Ahmed Muhammad Khan Durrani Muhammad Zaman Syed Abdul Bari Syed Agideno Syed Mehmood Ul Hasa Zahor Ahmed Qureshi Syed Abu Notab Balkh Syed Hassan Babar Muhammad Zareef Muhammad Hanif Pyar Ali Manji Muhd Akram Inayatullah Khan Abdul Sattar Mohammad Jameel S Jawad Hussain Abdul Rehman Butt Abdul Hameed Khan Muhammad Saeed Malik Muhammad Shafee Jamil Ahmed Siddqui Bashie A Khan Sheikh Abdur Raheem Mohammad Sadiq Ghulam Rasool Soomro Muzammil Hussain Butt Mohammad Farooq Dosa Manzoor Ahmad Abbas Bhai Fazal Din Chaudhry Vishin Das Kodwani Rasheed Khan Ch Muhammad Hussain Shabbir Ahmed Jumani Shafqat Hussain Sher Mohammad Sher Mohammad Sheikh Abdul Aziz Naseeruddin Mistry Hassan Ali Mistry Abdul Ghaffar Chaman Gul Pir Buksh Nazeer Ahmed Abdul Qudoos Siddiqui Muhammad Ismail Bugti 421 546 1.23 Street Off Khy B Rahat Phase Vi Dha Stadium Karachi 91/1 Street#23 Off Khayaban-e-rahatphase Vi Dha Karachi H#490 Sec 15-a Orangi Town Near Imdadia Masjid Karachi 1725/1054-a Sawat Colonybaldia Town Karachi Office # 4 L-block 1st Floor Nearkasb Bank Trust Plaza Gujaranwala P-08 Chapal Garden Abul Hasan Mohani Road Karachi C-23 Hasan Lodge Block 7 F.650 560 1. Charran Saran Kowdwani Faiz Ali Mohammad Yusuf Shahzad Tanveer Ahmed Jumani Shabana Shafqat Khan Mohammad Khan Khan Mohammad Khan Jawad Aziz Sheikh Nasim Nasiruddin Nasiruddin Mistry Riaz Ahmed Mohammad Zareef Fiaz Ahmed Khalil Ahmed Abdul Sami Siddiqui Muhammad Maluk Bugti Street#10 Fatima Jinnah Roadjunagarh Housekhi.254 399 462 419 408 846 500 500 740 399 164 176 297 151 275 406 13 383 91 186 43 123 152 167 815 165 374 155 203 147 156 208 45 34 93 219 15 117 59 291 59 38 189 137 143 311 273 18 157 113 11 270 91 141 171 166 13 41 10 17 7 69 46 29 585 722 1.299 660 681 1.619 512 651 818 526 518 1. Bufferzone Karachi B-59 Block-a North Naziimabad Karachi Plot# L-21 Pak Kauser Townmalir Karachi Flat # C-3 1st Floorkehkashan Appartment Block 7clifton Karachi H#c-350 Block-1 Gulistan-e-juharkarachi Karima View. 4 Gizri Laned.002 412 851 415 509 444 429 503 367 421 1. 5 Near Chanar Utility Stored.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.577 1.328 298 556 611 389 372 1. 2011 178 S.b.650 557 1.234 506 578 630 513 626 519 588 2.h. Clifton Karachi H#.haider Townmalir Haltkarachi House # 218 Street # 16 Shahfaisal Colony Near Allama Iqabagirls College Karachi H-b-101. Kaarachi Talla Hightes 3 Flr Flat No 5 Plot No31c Rohit Near Bilal Karachi House No. Sea Breeze Centre.khyaban-e-badbanphase-vii Dha Karachi 1-a-sea Clifton Appartmentblock 2 Clifton Karachi C-15 Kh-e-sehar Pahse-7 Dha Karachi 81/2 24th S Treet Off Khayaban-e-badar Phase 6 Dha Karachi.236 506 564 630 584 634 532 588 2. House-175 28th Street Kh-e-bukhari Phase-6 Dha Karachi Flat No V-1-2 1st Floor Country Club Apt 33rd St Phase-5 Dha Karachi House 94/2 25th Street Phase-6 Kh-e-mohafiz Dha Karachi House#94/2 25th Streetphase -6 Dhakarachi H# 59-15th Street Off Khayaban-e. Saeed Road Off. Blk-12.051 698 740 543 633 660 501 516 672 929 481 513 482 1.266 1.266 1.328 417 563 611 389 372 1. Dha Off Khayaban-e-mujahid Karachi H # D-96 Blk-5 Kehkashan Clifton British Embassy P/no.m.254 399 462 419 420 846 500 500 740 399 164 176 303 154 284 411 93 385 91 55 186 100 131 165 167 815 168 374 162 203 147 157 210 88 110 105 219 104 121 106 291 123 95 207 137 146 329 291 83 183 124 91 279 112 141 186 170 41 55 17 39 31 105 91 40 12 585 722 1. G.r Feroz Nana Roadbathisland Karachi H #7/1/1.a.545 522 645 543 523 1. NO. 1 Name of the borrower 2 Address 3 Other Financial Reliefs provided 12 Name of Individuals/ Partners/ Directors/NIC 4 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Total (10+11+12) 13 ---------------------------------Rupees ’000---------------------------------179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 Mohsin Raza Rajput Mohd Nadeem Khan Durrani Mohammed Ashraf Syed Qamar Alam Syed Aftab Hussain Shah Syed Muhammad Rehan Saeed Qazi Zaheer Ahmed Qureshi Syed Abu Saquib Nautab Balkhi Syed Abuzar Babar Muhd Farrukh Zareef Zahid Hanif Pervez Pyar Ali Ghulam Murtaza Muhammad Rehmatullah Khan Mohammad Jawed Mohammad Aqeel Hassan Jaffri Saif Ur Rehman Butt Abdul Saeed Khan Mohd Aziz Malik Muhammad Sami Zafar Jamil Mohammad Safdar Khan Parvez Rahim Maqbool Ahmed Rafi Ahmed Soomro Abid Parvaiz Butt Muhammad Ismail Dossa Safia Mansoor Moiz Zulfiqar Ali Ch.o.835 392 677 543 537 396 477 452 446 465 579 710 453 396 354 1.block-5.125 612 641 926 569 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Phase 4 Karachi Flat No A-5 Baloch Appt Main Gizri Nr Bank Al Habib H# 173 Street# 1-2 Liaqat Ashraf Colony Karachi H 52 St7 Abidabad Jamia Masjid Khattul Kubra Lyari Karachi. 32nd Street Phase-v. 118/1 28th Street Khayban E Hilal Phase Vi Dha Khayban Hilal Phase Vi Karachi H. Dar Ul Islam House Block 1gulshan E Iqbal Karachi 111 Rohal Khand Housingsociety Ahmed Berister Road Kidneyrangon Wala Hall Karachi House # 84/2 Street # 11 Off Khy-e-sehar Dha Ph-6 150-e E Market Block-6pechskarachi 2/222 Manak Jee Street Behind Garden Jamat Khana Garden East Karachi House# 24/24. Jamshed Rd # 1 Karachi H#448-a.h.a. Gulistan-e-johar Karachi House 201 Khizar Arcade Nawab Ismail Khan Road Karachi Flat H/14 1st Floor Five Star Complex Block-2 Gulshan-e-iqbal Karachi 121-p Block-2 Pechs Karachi R-68/1/9.527 446 619 532 419 1.59/ii.116 591 641 911 565 421 546 1.619 522 601 800 526 515 1.lane 24.m.408 448 1. (m)0345-2388482 B-403 Kiran Palacesec 15-a/1. Boat Basin.051 705 740 543 634 662 551 614 684 929 588 517 565 1. S.Badban Phase 5 Dha Karachi 91/1.9.835 392 677 543 537 396 477 452 446 465 579 710 459 396 354 1.595 1.25/c Saba Commercial St#3phase.596 811 956 1.

islamabad H#5. Bolan Roadst.951 694 4.293 2.420 485 513 948 593 676 455 448 563 628 469 1.420 485 513 948 593 676 226 289 563 628 469 1.o Tarnol Islamabad 718 82 I-8/4 Islamabad Flat.911 514 1. Pechs Karachi H#97/i Street#31 Khy-rahatphase 6 Dha Karachi Badin Choke Saryab Road Quetta 119 Raisani Roadkilli Shaikhan Quetta Haji Abdul Hamid Gali No 5 Ringghar Quetta Plot # 19-a Street # 4 Servey 79.619 47 38 100 15.898 530 1.f-10/4.340 561 588 1.no 15 Sec F/1mirpur Azad Kashmir 4250199676095 4430128377085 4540209068011 5220410575953 5410213677635 5440002961855 5440003450025 5440003537699 6110102390935 6110119389817 6110119389817 6110119770947 6110119791939 6110134494011 6110147510481 6110163784823 6110185519107 6110194775530 6110194775530 7150102098481 8130216968827 Siddique Ahmed Bhatti Mashal Khan Rana Yar Muhammad Mir Mohammad Ali Rind Mir Dad Khan Malik Mohammad Iqbal Abdul Hameed Muhammad Iqbal Chudary Muhammad Abbas Nawab Din Nawan Din Abdul Latif Malik Sher Khan Niazi Abdul Haq Mohammad Hussain Muhammad Hanif Ghulam Sarwar Cheema Yawar Saeed Khan Yawar Saeed Khan Inamat Ullah Khalid Kifayat Ali 471 1.940 471 1.# 259 St # 77 F-11/1 Islamabad H No 196 St 70 F 10/3 H#176-a.#20 Chaklalal Iii Rawalpindi House No 266-f St.golden Town 43 Malir Halt Karachi Rajput House.f-10/4. NO.619 651 1.291 659 788 255 325 608 809 607 1.st#48.372 568 979 451 156.041 2.041 2.ANNEXURE II TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.207 2nd Floor Pacific Center F-8 Islamabad H# 153-b St# 48 Sector F-10/4 Islamabad H.275 2.981 59 600 191 920 76 75 353 91 118 117 96 94 192 138 252 473 110 312 101 315 80 52.936 653 1. 1 Name of the borrower 2 Address 3 Name of Individuals/ Partners/ Directors/NIC 4 Father’s / Husband’s Name 5 Outstanding Liabilities at beginning of year Principal 6 Interest / Markup 7 Others 8 Total (6+7+8) 9 Principal written-off 10 Interest / Mark-up written-off 11 Total (10+11+12) 13 179 ---------------------------------Rupees ’000---------------------------------226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 Masood Ahmed Bhatti Raza Khan Rana Saleem Ahmed Mir Zubair Ali Rind Syed Gull Mohammad Arif Shakeel Ahmed Asif Iqbal Shaukat Abbas Chaudary Muhammad Nouman Mohammad Nauman Khayam Latif Malik Muhammad Khan Niazi Mohammad Rehman Hussain Sabri Muhammad Rizwan Haneef Johar Sarwar Cheema Tarannum Yawar Tarannum Yawar Haroon Khalid Muhammad Siddique A-109 13d1 Gulshan-e-iqbal Karachi L-177 Block-i Shireen Jinnah Colony Sector-5 Karachi 73-d. Block 2.618 530 1. 2nd Floor.294 531 225.290 519 271.498 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .372 568 979 451 200.338 561 574 1.951 706 4.st#48.301 684 794 619 582 657 820 607 1.sihala Rawalpindi H # 535 St 11 G/8/2 House#535 Street No 11 G-8/2 Islamabad H # 731 Dhoke Chaudhrian New Abadi P. 2011 Other Financial Reliefs provided 12 S.no.813 59 600 179 918 76 61 343 66 112 16 15 45 181 138 234 448 22 247 83 311 68 46.351 515 3.463 443 1.351 515 3. Union Council Road.463 454 1.islamabad H#176-a.684 669 1.509 13 21 38 24.

843 471.623 1.529 3.491 659.Current Accounts .751 2.Saving Accounts .503 (304) 371 67 2010 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .003) 654.Term Deposits .809.814 12.Other Islamic Modes Other assets LIABILITIES Bills payable Due to financial institutions Deposits and other accounts .080.151 1.050) 1.Salam .211.579 109.995.699 659.Diminishing Musharaka .063 1.761 (1. 2011 180 The Bank is operating 45 Islamic banking branches (2010: 13).000 (225.401 3.919 6.net of tax Remuneration to shariah advisor CHARITY FUND Opening balance Charity fund transferred from amalgamated entity Additions during the year Payments / utilization during the year Closing balance 2011 Rupees ’000 1.Murabaha .696 880.527 1.492.Ijara .834 181.313 1.846.091 1.ISLAMIC BANKING AS AT DECEMBER 31.778 404.187 3.258 12.837 1.799 5.997 4.Others .413.273 19.862 11.588 2.375.remunerative .187 9.000 (94.500 24.ANNEXURE III TO THE FINANCIAL STATEMENTS STATEMENT OF FINANCIAL POSITION .551 826.237 21.727) 785.997 880.171 67 2.293 23.Deposits from financial institutions .800 173.089.868 21.011.235 577.724 804.035.288 1.577.696 3.534 47.666.582 804.249 11.Deposits from financial institutions .067 1.331.non-remunerative Due to head office Other liabilities NET ASSETS REPRESENTED BY Islamic Banking Fund Reserves Unappropriated profit / (loss) Surplus / (deficit) on revaluation of assets.751.997 2.Musharaka .651.827 7.341. ASSETS Cash and balances with treasury banks Balances with and due from financial Institutions Investments Financing and receivables .614.018.586.

972 193.836 273. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 1.956 519.249) 2.493 (1) 6.574 .527 (224.723 1.385 189.731 732 16.451 101 23.276 130.ISLAMIC BANKING FOR THE YEAR ENDED DECEMBER 31.315 8 395.117.060) Administrative expenses Other provision / write-offs Other charges Total other expenses Extraordinary items / unusual items Profit / (loss) for the year *Comparative includes loss amounting to Rs.492 187. commission and brokerage income Dividend income Income from dealing in foreign currencies Capital gain on sale of securities Unrealized gain / (loss) on revaluation of investments classified as held for trading Other income Total other income Other expenses 21. 2011 2011 Rupees’000 Profit / return earned on financing and investments Profit / return expensed Net spread earned Provision against non-performing financings Provision against consumer financings Provision for diminution in the value of investments Bad debts written off directly Income after provisions Other Income 2010 181 15.463 502.050 419.276 3.691 413.ANNEXURE III TO THE FINANCIAL STATEMENTS PROFIT AND LOSS ACCOUNT .546 225. 266.263 18.275 525.587 6.467 139.862 million arising on amalgamation.586 130.060) (224.006 597.862 377.082 Fee.011 60 563 (1.

Khalid Bakali .844 1.Executive Ahmed Kamran .Executive Tariq Mehmood .Rizvi .443 1.000 1. Gulshan Karim Appartment. Riaz-ul-Hassan .594 1.Individual Flat No.879 1.Executive Asad Kerai .Executive M.194 995 3.Executive Muhammad Abadullah .825 360 1.000 or above are as follows: Description FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Accumulated Book Sale Gain / (Loss) on depreciation value proceeds disposal -------------------------------Rupees ’000 ------------------------------1.072 1.125 1.001 563 570 479 592 175 747 401 582 112 563 330 1.Executive Syed Mustafa Aftab .194 570 2.1 million or net book value of Rs.Executive Zahid Qadri .Executive Syed Kazim Raza .088 1.200 1.115 321 975 316 925 768 861 889 496 232 286 80 156 16 114 113 714 3 12 121 107 207 12 38 17 479 539 586 Cost Mode of disposal Particulars of purchaser / Insurer / addresses Owned . 2011 182 Details of disposal of fixed assets to executives.Executive Syed Majid Ali .Vehicles Honda Civic Vti Honda City Honda City Honda City Toyota Corona Suzuki Liana Honda City Honda Civic i-VTEC Toyota Corolla Toyota Corolla Honda City Toyota Corolla Xli Toyota Corolla Xli Honda Civic Vti Honda Civic i-VTEC Honda City Honda City Suzuki Swift Honda City Honda City Honda Civic Vti Mistubishi Lancer Mistubishi Lancer As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy Bid Bid Bid Bid Honda Civic Vti 1. karachi.Executive Syed Adnan A.221 1. Abdul Razzak . B-160.375 898 476 495 18 As per Bank’s policy Syed Kazim Raza .Executive Dina Shahban .239 1. Karachi.136 1.221 1.749 1.154 814 833 1.704 253 908 309 937 316 909 289 322 303 1.Executive Iqbal A. Syed Riaz Ahmed .Executive Syed Kausar Nadeem .Executive Adeel Ali Khan .056 1.675 964 316 321 417 326 1.Individual House No. Gulshan-Iqbal. Main University Road.Executive . A-216.Executive Asad Kerai .562 250 316 321 414 314 1.Executive Zulfiqar Ahmed Khan .Executive Syed Nadeem Ahmed .049 879 1. 250.251 879 891 893 906 1.254 893 907 491 2.136 590 303 286 504 494 144 114 187 1. Zubairi . Allama Iqbal town.197 1. Sparko.107 1.ANNEXURE IV TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.Executive Muhammad Afzal . Karachi.Individual House No.309 891 1. and other persons having cost of more than Rs.Executive Muhammad Afzal . B-11.Executive Suhail Khan .750 1.750 1.

895 1.056 1.132 1.632 300.416 771 245 234 - 1.272 59. 2011 183 Description Honda Civic Vti Toyota Corolla Honda Civic Vti Toyota Corolla Honda City Honda Civic Vti BMW Mitsubishi Lancer Mitsubishi Lancer Honda Civic 1.042 845 432 177 384 543 1.Leasehold Land Gulberg Property 61.042 915 1.002 1.000 1. Zulfiqar Ahmed Khan .675 1.Individual House No.675 1.288 4.Executive Aarij Ali .718 1.Individual House No. Syed Riaz Ahmed . Gulshan-Iqbal.226 631 595 856 As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy As per Bank’s policy Bid Bid Bid Bid Syed Majid Ali .760 1. Lahore Cantt.825 1.000 887 768 1. fixtures. Lahore Owned . A-216. Ilama Iqbal town.368 Negotiation 319 446 410 (36) Insurance Claim UBL Insurers Limited FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Accumulated Book Sale Gain / (Loss) on depreciation value proceeds disposal -------------------------------Rupees ’000 ------------------------------- Cost Mode of disposal Particulars of purchaser / Insurer / addresses .000 240. A-216.368 1. Syed Riaz Ahmed .800 1.104 1.026 2. Karachi.Executive Suhail Khan .226 876 829 856 141 307 107 259 333 1. B-160.Executive Muhammad Naveed-ul-Haq .Executive Syed Nadeem Ahmed .288 4.ANNEXURE IV TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31.904 Owned . Karachi. Karachi. equipments and computers Generator 765 2.Individual House No.Executive Muhammad Abadullah .Office furniture.Executive Syed Riaz Ahmed .314 1. Gulshan-Iqbal. A-216.026 2. Gulshan-Iqbal.Individual House No.800 1. karachi JDW Sugar Mills Limited 17 Abid Majeed Road.

Subject to the foregoing. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 And Allah knows best.SHARIAH ADVISOR»S REPORT FOR THE YEAR ENDED DECEMBER 31. any matters requiring corrective measures have been noted and were resolved by Management. During this period number of new products. 2012 . 4. policies and processes were introduced. Mufti Mohib ul Haq Siddiqui Shariah Advisor Karachi: February 28. 2. in my opinion the affairs of the Islamic Banking Division have been carried out in accordance with the rules and principles of Shariah. I have reviewed the operations of this Division on a periodic basis to ensure that all the products and services being offered conform to the injunctions of Shariah. In my opinion the allocation of funds. each class of transaction. profit sharing ratios. profits and charging of losses (if any) relating to PLS accounts are in accordance with Shariah rules and principles. the relevant documentation and procedures adopted by the Islamic Banking Division. 3. The Shariah aspect of all of these changes were reviewed and approved by myself. Based on the foregoing. and some existing processes were streamlined and improved. SBP regulations and guidelines related to Shariah compliance and other rules as well as specific fatwa and rulings issued by myself in my capacity as Shariah Advisor from time to time. During my review. I am pleased to report: 1. 2011 184 Alhamdulillah Faysal Bank Limited operated with 45 Stand-Alone Islamic Banking Branches (IBBs) and 8 Islamic Windows during the year 2011. I have examined on a test check basis. weightages. documents and information from all sources related to the business of the Islamic Banking Division. In the period under review management has provided me free access to all records. In my opinion no earnings have been realized from sources or by means prohibited by Shariah rules and principles which may be credited to Charity Account.

C.738 2.C. INVESTMENT CORPORATION OF PAKISTAN ASSOCIATED COMPANIES.COMBINED PATTERN OF CDC AND PHYSICAL SHARE HOLDINGS AS AT 31-12-2011 CATEGORY NO.515.Ithmaar Bank B.437 23.GEN.226 148.595 6 369.00 0.) MR. INSURANCE COMPANIES. SHAHID AHMAD MR.625 14.S.A. NAVED A. PUBLIC SECTOR COMPANIES AND CORPORATIONS BANKS.189 30 53.989.572 26.754 66.) MR. NBFIs. FAROOQ RAHMATULLAH MR.) COMPANY SECRETARY EXECUTIVES NIT / ICP NATIONAL BANK OF PAKISTAN .76 56.342 PERCENTAGE % 6.580.450.S.81 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 185 0. (SPONSOR COMPANY) FAISAL FINANCE (LUXEMBOURG) S. DFIs.805.569 6.767 35.55 550.315 0.02 1.78 NUMBER OF SHARES HELD CATEGORY CATEGORY WISE WISE NO. MFAI (JERSEY) LIMITED DMI (JERSEY) LIMITED FAISAL PRIVATE BANK (SWITZERLAND) S. GRAHAM RODERICK WALKER (A/C .445. 1 2 3 4 CATEGORIES OF SHARE HOLDERS INDIVIDUALS INVESTMENT COMPANIES JOINT STOCK COMPANIES DIRECTORS . KHAN (A/C .146 48.Ithmaar Bank B. HASSAN MOHAMMED MAHMOOD HASSAN LT.563.C.34 0.080 70. UNDERTAKINGS AND RELATED PARTIES ITHMAAR BANK B.118.511. MOHAMED A. OF SHARES HELD SHARE HOLDERS 17.235 11 120 8 776 776 776 562 776 143.552 562 562 13 8 187.HUSSAIN MR.A. MUHAMMAD MAQBOOL (RETD.720 65. TRUSTEE DEPTT.257. MODARABAS & MUTUAL FUNDS 14.S.CHIEF EXECUTIVE OFFICER AND THEIR SPOUSE AND MINOR CHILDREN SYED NASEEM AHMAD MR.R.534.02 5 6 7 8 9 10 .

311.824 PERCENTAGE % 17.311.00 0.080 PERCENTAGE % 44.02 100.07 0.431. OF SHARES HELD 369.C. 11 CATEGORIES OF SHARE HOLDERS FOREIGN INVESTORS CO-OPERATIVE SOCIETIES CHARITABLE TRUSTS OTHERS TOTALS NUMBER OF SHARES HELD CATEGORY WISE CATEGORY SHARES HELD WISE NO.182 SHARES DESCRIPTION FALLS IN CATEGORY # 8 NO. OF SHARE HOLDERS 45 1 6 11 17.83 .63 0.336.824 SHARES 82. (SPONSOR COMPANY) 824.COMBINED PATTERN OF CDC AND PHYSICAL SHARE HOLDINGS AS AT 31-12-2011 186 CATEGORY NO.654 968 605.S.494 145.00 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 12 13 14 SHARE-HOLDERS HOLDING TEN PERCENT OR MORE VOTING INTEREST IN THE LISTED COMPANY TOTAL PAID-UP CAPITAL OF THE COMPANY 10% OF THE PAID-UP CAPITAL OF THE COMPANY NAME(S) OF SHARE-HOLDER(S) ITHMAAR BANK B.664 133.563.532 824.

437 23.5 FINANCIAL INSTITUATIONS LEASING COMPANIES INSURANCE COMPANIES MODARABAS MUTUAL FUNDS 56.00 10 11 12 13 FOREIGN INVESTORS CO-OPERATIVE SOCIETIES CHARITABLE TRUSTS OTHERS .76 66.00 0.754 0 53.07 0.511.79 0.964.766.494 SHARES HELD PERCENTAGE INDIVIDUALS INVESTMENT COMPANIES JOINT STOCK COMPANIES DIRECTORS.523 145.55 0.118.856 412 47.532 824.00 5.03 17.738 2.664 133.805.738 253.2 9.1 9. CHEIF EXECUTIVES OFFICER AND THEIR SPOUSE AND MINOR CHILDREN EXECUTIVES NIT / ICP ASSOCIATED COMPANIES .00 0.72 0.02 1.34 0.569 5.989.00 0.625 14.311. 1 2 3 4 5 6 7 8 9 CATEGORIES OF SHARE HOLDERS NUMBER OF SHARE HOLDERS 17.COMBINED PATTERN OF CDC AND PHYSICAL SHARE HOLDINGS AS ON 31/12/2011 187 CATEGORY NO.02 0.315 550.81 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 0.654 968 605.226 148.78 0.336.4 9.040 4. NBFIs.00 6.02 100.342 187.450.235 11 120 8 13 8 6 0 30 10 2 8 4 6 45 1 6 11 17. INSURANCE COMPANIES MODARABAS AND MUTUAL FUNDS 9.3 9.63 0. DFIs. UNDERTAKINGS AND RELATED PARTIES PUBLIC SECTOR COMPANIES AND CORPORATIONS BANKS.824 6.

176 678.067.000 30.440 680.000 65.056.931 1.914 1.000 10.00120.817 8.00145.593 6.912 3.000 40.00160.000 35.339 4.00150.0015.232.691 930.043.168 1.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 Number of Share Holders Share Holding Total Shares Held 188 4.151 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 11015011.00140.00115.000 25.000 5.792.465 4.00110.763 2.978 1.129 1.000 15.466.000 45.00165.00135.000 70.290.571 567.00130.358.844.840 1.401.622 731.000 55.000 20.000 60.00125.226 695 253 144 74 47 43 33 22 22 14 10 11 10 .000 50.000 146.001- 100 500 1.850 1.00155.893 1.674.

000 80.693 428.000 140.112 466.977 549.913 443.00175.000 115.001140.151 489.001- FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .001135.000 145.001150.000 130.000 105.000 581.00185.530 272.965 257.650 786.662 329.000 155.918 189 70.000 110.000 120.832 304.435 154.001125.00195.883 685.001155.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 Number of Share Holders 8 7 6 5 6 7 3 3 7 2 2 2 1 2 3 1 3 Share Holding Total Shares Held 75.000 125.001120.000 100.000 135.000 85.001100.001130.000 160.00180.000 90.00190.001110.751 238.000 95.944 247.001105.443 548.001115.099 133.

000 305.130 301.070 232.001240.623 205.001230.000 275.001175.317 445.000 280.000 180.001205.000 195.875 403.000 261.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 190 Number of Share Holders 4 Share Holding Total Shares Held 165.000 175.001245.001300.001200.001260.000 265.000 235.001165.001220.001- FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 3 3 2 2 1 2 1 2 1 1 2 1 1 1 1 2 .332 276.637 272.875 240.000 200.000 250.001190.637 497.000 205.164 502.001275.000 245.000 330.001170.266 356.000 225.001325.000 210.687 519.001195.520 160.000 652.776 380.001270.439 652.686 196.000 170.

000 530.000 390.001615.000 820.820 920.001640.001415.001560.001380.000 705.079 761.230 892.444 1.000 1.997 191 335.748 419.000 366.000 385.742 385.284 1.001700.177.001530.001390.001365.287 644.001445.001815.635.250 1.001- 340.095.000 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 .375 562.899 534.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 Number of Share Holders 1 1 2 1 1 1 2 1 1 1 2 1 1 2 1 1 1 Share Holding Total Shares Held 340.402 700.000 925.069 393.235.000 370.001385.000 620.000 565.000 420.000 645.500 1.0011.001525.180.001920.000 1.686 527.093.090.0011.175.000 450.000 535.000 395.

594.315.330.180.460.031 3.540.0011.771.504 4.545.695.000 1.197.945.175.960.691.940.0012.000 10.669 2.205 3.847.512.690.00118.455.845.308 1.501 1.775.000 1.0014.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 192 Number of Share Holders 1 Share Holding Total Shares Held 1.110 10.000 1.936.339 18.805.000 2.285 1.000 10.947.590.915.00114.0011.000 4.955.200.472 1.000 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .423 2.949 4.554 14.161 1.611.920.177.000 3.00110.0013.958.510.610.458.935.595 10.805.0011.0013.000 14.296 3.0013.810.000 4.000 2.0012.950.000 3.0014.327.515.000 1.195.544.001- 1.000 3.325.917.751 2.850.00110.770.000 18.615.313.310.000 2.0011.0012.595.

065 70.260.00143.560.580.000 43.355.494 824.011 35.00141.000 27.001369.824 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 26.701.000 41.756 193 21.515.000 70.700.802 43.565.00127.650.00126.000 40.PATTERN OF SHARE HOLDINGS CDC AND PHYSICAL AS ON 31/12/2011 Number of Share Holders 1 1 1 1 1 1 1 1 1 Share Holding Total Shares Held 21.001- 21.00140.00170.651.00135.520.146 369.020.000 26.655.311.563.572 40.025.255.000 35.021.360.189 .080 17.580.585.515.257.180.000 27.179.175.705.355.748 41.000 369.

The light it brings is free of limits of time and space.FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Once the ambitious soul comes into its own then any physical worldly binds become undone. INFINITE HORIZON .

.

7th Zamzama Commercial Lane.BRANCH NETWORK SOUTH REGION 196 S. Main Korangi Road DHA Phase 1 Plot # 51 / 9. Shahbaz Commercial D-4. Karachi 16-Abdullah Haroon Road 72-A/Z. Phase VI. Korangi # 2.C.A Scheme # 5. D. Sunset Commercial Street # 2. Karachi Iqbal Arcade. Al-Murtaza Commercial Lane # 4. NO. Karachi B-09 Main Electronics Market. Karachi Q-14.2 DHA Phase VIII Shah Faisal Colony Gulbahar AHR Karachi Shaheed-e-Millat Karachi Defence Karachi North Nazimabad Karachi Clifton DHA Korangi Karachi North Nazimabad Karachi Shahrah-e-Faisal CITY Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi CONTACT 021-111-747-747 021-35838959 021-35845771 021-34384364 021-36670050 021-34326661 021-34390514 021-35390542 021-35114400 021-35877923 021-35349113 021-35877845 021-35802426 021-36707420 021-35243985 021-34302250 021-35071757 021-35246014 021-34686215 021-36729801 021-35838959 021-34311950 021-35347266 021-36721635 021-35875454 021-35805179 021-36676028 021-34535119 BRANCH ADDRESS ST.02.C.H. Al-Riaz 22/C. SD-5 Progressive Centre FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . Karachi Plot # D-6. Karachi Plot # 2-F (Commercial). Clifton. Block D North Nazimabad 3-C. Clifton World Business Center. Tauheed Commercial. Plot No. Khayaban-e-Tanzeem. Ground Floor. 3/7 D. North Nazimabad Business Avenue Centre.Block-2 P. D. Karachi Gulbahar Branch Plot # 476-477-478 Ghousia Colony.H. Karachi (FAYSAL HOUSE) Quality Heights. Badar Commercial Street.A Scheme # 2. 129 / I & II.A Phase VIII. Plot # 6. Karachi Speedy Towers.E. Plot # FLI. Khayaban-e-Shahbaz.H. Sector 15. K.C Society. M. Phase IV D. Phase V Plot # 89-B.S.A. Sector 33-A. St # 6. Block III (III-A. Ground Floor Plot # 36-C. Clifton Block-2 Stadium Lane.A Phase V.A. Block 7/8.H. Karachi 43-C.A. Stadium Lane II. Sub Block A. Shah Faisal Colony.1 / 16) Nazimabad. Phase V 14-C. Block-D.C.M. P.D. D.S. Khayaban-e-Mujahid D.A. Lane-2.1. Block # 6.D. Khayaban-e-Mujahid Khayaban-e-Tanzeem Phase IV DHA Nazimabad Branch Saba Avenue Khalid Bin Waleed Road Korangi No. Karachi 14-C . Clifton. 1 2 3 BRANCH CODE 110 118 124 127 129 131 143 144 156 165 172 173 175 195 196 198 209 216 240 251 330 333 338 342 425 426 428 430 REGION South South South South South South South South South South South South South South South South South South South South South South South South South South South South BRANCH NAME Karachi Main Quality Height Clifton DHA Shahbaz Shaheed-e-Millat North Nazimabad Shahrah-e-Faisal MACHS Korangi Road Korangi Industrial Area Beach Blessings. No. Main Korangi Road Almas Square.H. Karachi B-3 & B-4. Karachi Shop # 2 & 3. Main Shahra e Faisal.E.H. Karachi Plot #16 Row #1. Block II. Karachi 43-C.H. Karachi 23-C. Main Korangi Road.S. K.H.

1/1. Area Karachi Khayaban-e-Ittehad Karachi Tipu Sultan Road Clifton Centre Branch Gulshan-e-Iqbal Jodia Bazar Cloth Market SITE New Challi North Karachi Industrial Area Gulshan Chowrangi Timber Market I. C. Garden Road. 5 Ground Floor APWA Complex. Main University Road. Block 13-A Main University Road. Lee Quarters 11/13. New Naham Road off. Plot # 67-AC. Chundrigar Karachi S.A Scheme # 36 A-287. Abdullah Haroon Road. Plot # ZC-6 Block # 7. Karachi SB-25 Block 13/C. M. Karachi Abid Chamber.6/9. Ismail Trade Centre. Block 13-A KDA Scheme 33. B-17. Kharadar Karachi Plot No. I. DC-1.E. State Avenue. Gulshan-e-Iqbal State Life Building 11. Chundrigarh Road.P. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 BRANCH CODE 434 438 441 442 269 119 123 134 139 145 152 153 164 170 174 210 217 221 222 227 231 236 335 422 423 424 427 429 REGION South South South South South South South South South South South South South South South South South South South South South South South South South South South South BRANCH NAME Karachi Dhoraji Karachi Federal B.5 & 6. New Neham Road. Gulshan-e-Iqbal G-2. Karachi SA -2 (ST1/1) Sector 12-B. Plot # LS -12 (ST -7) Sector 11K. North Karachi Industrial Shop # 1-4. Saddar Karachi Gulshan Abdullah Haroon Karachi Jodia Bazar Karachi I.D.D. 35/244. Abdullah Haroon Road. 16-A. Burns Road karachi Plot # A-747/C. Buffer Zone. Area 8-C Ittehad Commercial Lane No 9. Bander Quarters. Block 5 Clifton Centre. 110.BRANCH NETWORK SOUTH REGION 197 S. Block 17.3499 4261 021-32443795 021-32471443 021-32439021-22 021-32438150 021-32585925 021-32214903-904 021-36957155-3695 021-3481 5319 021-32734508 021-32734490 021-32638011-16 021-3402 6856 021-3497 2202 021-32294778 021-36914034-36 021-36950081-87 021-2211077-23 021-3465 2159 021-32751585-86 021-111 335 335 021-35682639 021-32522225-8 021-32418300-3 021-32569934-39 021-32472616-8 BRANCH ADDRESS Sana Pride. Block-2. Ground floor Sana Arcade.I. Sector 15-A / 2. Hashmi Electronics Centre.16-B. Chundrigar Road Plot # B/9-B/2 Estate Avenue Cloth Market.T.I. Trade Centre I. Zonal Commercial Area Plot No. K. Pakistan Employee Cooperating Housing Society Shop # 3.A. Karachi Shop # 29 & 30.A Scheme -24. Lokhat Mansion. North Karachi Shop # 4 & 5 Ground Floor. Plot # MR-6/52/1. Chundrigar Road Gulistan-e-Jauhar Gulshan Block-2 APWA Complex Garden Power House UP More Buffer Zone Burns Road Gulzar-e-Hijri Electronic Market. Ram Bharti Street BR-2. I. Jinnah Road FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Shahra-e-Liaqat. Block 18. Mohammad Shah Street Nadir House. I. Karachi Cloth Market CITY Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi CONTACT 021-34136551 021-36800693 021-35346706 021-34301188 021-35871891 021. Siddique Wahab Road. K. Karachi Shop # SOA . Karachi Shop # 4. Kehkashan B -35.Gulshan-e-Iqbal. NO. I. North Karachi Town Ship Plot # R-2. Saddar. Plot No. Rufi Lake Drive. Survey # 2 Shahra-e-Liaquat. Federal B.A Scheme 24 Plot # 6/2 Old Haji Camp. Plot 3 SR.& Berar Coop C-25. Karachi NP 12/74. K.D.

Race Course Road . Main Mohni Bazar. 715. Unit No 8. Hyderabad Latifabad Mirpur Khas Nawabshah Shahrah-e-Adalat Fatima Jinnah Road Sukkur Sukkur Turbat The Mall -Branch M. Circular Road. Block VII. Lahore 95. 555. Quetta City Survey No. Shalimar Bagh. Lahore Bilal Market. Gulberg-III. Hyderabad C . M.M.A H-Block-Branch Garden Town-Branch Circular Road-Branch Shalimar Garden-Branch Allama Iqbal Town-Branch Main Boulevard Gulberg-Branch Model Town-Branch Badami Bagh-Branch Faisal Town-Branch CITY Karachi Karachi Karachi Karachi Karachi Karachi Karachi Hyderabad Hyderabad Mirpur Khas Nawabshah Quetta Quetta Sukkur Sukkur Turbat Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore CONTACT 021-36920621-25 021-36661300 021-36662034 021-32412803-07 021-35143538-40 021-34023795 021-34023791 021-34376342 021-43476348 021-36340242-6 022-2728356-59 022-3820526-7 0233-876472-75 0244. Gulistan-e-Jauhar. Shahrah-e-Quaid-e-Azam. ST-4/A-1. Allama Iqbal Town. Ward B. Alam Road. Sukkur Main Bazar 43. Karachi Shop No.3. Sukha Talab. MR-1 Shop No. Adjacent to Bank Al Habib Plot # 339. M. Fatima Jinnah Road. Alam Road Gulberg-Branch D. Industrial Area Street 15 Block 3. Karachi. 1. Mirpurkhas CS No. Baghbanpura. Faisal Town.2. Lahore 13-Bank Square Market. Main Boulevard. Commercial Area Phase-I. Lahore . Main Road. Badami Bagh. Lahore 59-A. Block-H. Latifabad. Umerkot Road. Metroville SITE BRANCH ADDRESS FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 G5. Lahore.330895. Block 7 Karachi Administration Employees Cooperative Housing Society (KAECHS) Plot No.4. 51. Sukkur Shaheed Gunj. Ward A.97 081-2838449 081-2837234 081-2824973 071-5617195-97 071-5628417-967 0852-411074 042-37314051-54 042-35755190-95 042-35897712-17 042-35889810-4 042-37673001-6 042-36844710-17 042-35437004-8 042-35787823-9 042-35884505-07 042-37705536-41 042-35201991-3 ST-3. Nawabshah Shahrah e Adalat. Lahore 1-Taj Chambers. SA-85. Federal B Area. B-II. Block 2 Main Tariq Road PECHS. Quetta Yousuf Centre. Gulberg. Sector 12-A.BRANCH NETWORK SOUTH / CENTER REGION 198 S. Plot SV-9. Lahore 18-Hunza Block.489. 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 BRANCH CODE 431 436 437 281 252 255 265 138 239 258 272 115 183 230 455 453 112 117 125 130 132 137 142 148 150 151 158 REGION South South South South South South South South South South South South South South South South Center Center Center Center Center Center Center Center Center Center Center BRANCH NAME Karachi North Karachi Karachi Metroville Karachi Marriott Road Tariq Road Branch Safoora Goth Branch Mehmoodabad FB Area II Saddar. NO. KDA Scheme # 36. Scheme-16. Karachi Plot No. 1 & 2 Plot 9-C.H. Garden Town. Hyderabad City Survey No. Plot Sheet No. D1596 / 1-D. G6 & G7. Taluka and District. Main Boulevard. DHA Lahore Cantt 4-Aibak Block. Model Town. Lahore Babar Center. Lahore 136/1. Block-20. Main Bohra Bazar Saddar. 716 and 718. 10-C.

R-205-A. Faisal Town. Ali Town. Lahore 50. Lahore. Lahore 594-A. Urdu Bazar. Awaisia Cooperative Housing Society. Cantt. Lahore Bedian Road. Phase II. Aiwan-e-Iqbal Complex. Shadman 1. Lahore Ground Floor. Lahore Cantt 310-Upper Mall Shahrah-e-Quaid-e-Azam. Ichra. Shahdara. Jail Road. Mughalpura.T. Near AFC. Lahore University. Bank Square. Gulberg III. Link College Road. Cavalry Ground. Liberty Market. Ferozpur Road. Johar Town. Lal Pul. Circular Road. DHA. Walton Cantt. Lahore CCA-22. Opposite Holiday Inn Hotel. Main Shah Alam Market. Lahore 36-Jinnah Plaza. Lahore Cantt 435-G-I. 37-E. III Saeed Alam Tower. Lahore FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . T Block. Lahore 2/B. Lahore 3/15 Jahangir Road.BRANCH NETWORK CENTER REGION 199 S. Lahore 41 .Alamgir Market. NO. Thokar Niaz Baig.Road. Lahore 172. Old Nishter Road. New Airport Road. Lahore S-38. Sarwar Road. Raiwand Road 11 . Lahore Usman Plaza. Civic Center Gulshan-e-Ravi. Main Boulevard Defence Link Road. Lahore 78 Brandreth Road. Near DHA Phase VI.A. Opposite Lahore Hotel. Cattle Street. Day Building CMH Chowk. Opp. Choburji Chowk Lahore Adjoining Divine Mega-II Plaza. Township Lahore 8-The Mall. Lahore 8-A. Lahore 4/5 Haroon Plaza. Lahore G. Lahore 1482 / 14-15. Mcleod Road. 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 BRANCH CODE 160 178 179 180 181 182 186 187 188 189 197 205 208 211 212 218 223 233 331 334 401 416 417 419 REGION Center Center Center Center Center Center Center Center Center Center Centerl Center Center Center Center Center Center Center Center Center Center Center Center Center BRANCH NAME Thokar Niaz Baig-Branch Shadman-Branch Shahalam Market-Branch Urdu Bazar-Branch Bedian Road-Branch Johar Town-Branch Shahdara -Branch Liberty Market-Branch Ichra-Branch Walton Cantt-Branch Mcleod Road-Branch Mughalpura-Branch Chouburji-Branch New Airport Road-Branch Ghazi Chowk-Branch Nila Gumbud-Branch Brandreth Road-Branch CMH Chowk-Branch Lahore Main-Branch Cavalry Ground-Branch Egerton Road-Branch Gulshan-e-Ravi-Branch T-Block-Branch Faisal Town-Branch CITY Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore CONTACT 042-35314020-23 042-37599316 042-37599242 042-37675619 042-37651968 042-37314617-18 042-35720254 042-35745868 042-35302018 042-35315735-6 042-37902501-506 042-35752108-9 042-37569934-35 042-36604309-12 042-36370024/45/67 042-36524863-4 042-37568229 042-37568223 042-35910014-15 042-35212250-54 042-37360032/34/38 042-37367224-225 042-36602327-29 042-111-11-22-33 042-35789013 042-111-321-321 042-36655590 042-36371111 042-36278782 042-37404511-6 042-36301107 042-35707667-9 042-35707747 042-35203881-2 042-35203892 BRANCH ADDRESS Jamal Market. Ghazi Chowk.

BRANCH NETWORK
CENTER REGION
200

S. NO.
108 109

BRANCH CODE
457 459 461 462 282 464 467 468 469 253 256 271 273 274 276 232 200 242 266 264 225 226 448 199

REGION
Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center

BRANCH NAME
Gulberg Industrial Area-Branch Valancia-Branch PIA Town-Branch DHA Y Block-Branch Tufail Road New Garden Town-Branch Badami Bagh-Branch Qurtuba Chowk-Branch Bilal Gunj-Branch Fruit Market -Branch EME-Branch Main Multan Road Daroghawala Karim Block Shadbagh Branch Lahore Arifwala Burewala Haroonabad Bahawalnagar Cheshtian Chichawatni Depalpur Dera Ghazi Khan Dera Ghazi Khan

CITY
Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Arifwala Burewala Bahawalnager Bahawalnagar Cheshtian Chichawatni Depalpur Dera Ghazi Khan Dera Ghazi Khan

CONTACT
042-35717141-5 042-35188604-5 042-35189011-6 042-35189020 042-35728282 042-35692519 042-36604909-15 042-35861111 042-35940191 042-37708160 042-37708171 042-37210500-4 042-37900268 042-37214084-8 042-37944504 042-37944503 042-37511081-4 042-37801910 042-37801909 042-36533526-30 042-35295572-4 042-35295578-79 042-37614813-17 045-7835423 067-3773011 067-3773018 063-225119-32 063-2279338-40 063- 2507809-11 040-5482305-06 044-4540768-69 064-2474175-77 064-2468769-72

BRANCH ADDRESS
25-B-2, Gulberg III, Lahore A-6 H Block, Commercial Zone Valancia Society, Lahore 188 Block F, Phase 1, PIA Society, Opposite Wapda Town, Lahore 77-Y, Phase III, Commercial Area, DHA, Lahore Garrison Officers Mess, 12, Tufail Road Lahore Cantt Awami Complex, Block No 2, New Garden Town, Lahore 343- Circular Road Badami Bagh, Lahore 110-A Lytton Road Qurtaba Chowk, Lahore 16-Shahjehan Road, Bilal Gunj, Lahore 136, Farooq Centre, Fruit Market Scheme, Ravi Link Road, Lahore 111-D, Commercial Area, EME Society, DHA Multan Road, Lahore 235/1, Badar Block, Allama Iqbal Town, Lahore 386-C, More Salamat Pura, Main G.T Road, Daroghawla, Lahore Plot No. 2-B, 2-C, Karim Block, Allama Iqbal Town, Lahore Tajpura Chowk, Near PTCL Exchange, Misri Shah, Shadbagh, Lahore 173-D Thana Bazar Arifwala 95-C, Multan Road, Burewala 25/C Grain Market Haroonabad Distt Bahawalnager Shop # 02 Ghalla Mandi ,Bahawalnagar 143 B - Block Main Bazar, Cheshtian G.T Road,Chichawatni Shop # 1& 2, Gillani Heights, Madina Chowk, Depalpur Block 18, Pakistan Plaza Jampur Road, Dera Ghazi Khan

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131

BRANCH NETWORK
CENTER / NORTH REGION
201

S. NO.
132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160

BRANCH CODE
270 263 241 275 229 121 133 149 203 341 260 155 247 157 201 202 154 447 452 278 194 126 213 169 166 113 262 220 332

REGION
Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center Center North North North North North North North North North North North

BRANCH NAME
Hasilpur Khanpur Khanewal Kot Addu Mian Channu Bosan Road Old Bahawalpur Road Bahawalpur Qadaffi Chowk Nusrat Road Vehari Road, Multan Okara Pakpattan Rahim Yar Khan Sadiqabad Sahiwal Vehari Vehari Islamabad Blue Area II PWD F-11 Markaz F-10 Markaz Islamabad F-8 Markaz I-10 Markaz F-7 Markaz Blue Area Bara Koh G-10, Markaz F-7/ II

CITY
Hasilpur Khanpur Khanewal Kot Addu Mian Channu Multan Multan Multan Multan Multan Multan Okara Pakpattan Rahim Yar Khan Rahim Yar Khan Sahiwal Vehari Vehari Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad Islamabad

CONTACT
062- 2441403-05 068- 5577411-13 065-2553608-11 066-2241093-97 065-2664262-64 061- 6214905-09 061-4784493 061-4785203-04 062-2730691-95 061-6784276-79 061-111-11-22-33 061-6241083-85 044-2551773 044-2552172 045-7352307-09 068-5889411-15 068- 5702440 040-4224060-64 067-336640 067-3360797 067-3366582 051-2275252 051-5156081 051-2228142-4 051-2104456-8 051-2817256 051-4102105-8 051-2652676 051-2654689 051-2275096-9 051-2304047-50 051-2101272-73 051-111-11-22-33 16-D Baldia Road, Hasilpur

BRANCH ADDRESS

Faysal Bank Ltd, Doabba Road, Khanpur Plot No. 75, Block 12, Sir Syed Road, Khanewal GT Road, Kot Addu GT Road near T chowk, Mian Channu I/A-2, Officers Colony, Bosan Road, Multan 129/1, Old Bahawalpur Road, Multan 2 - Rehman Society, Noor Mahal Road, Bahawalpur 709-Qaddafi Chowk, Khanewal Road, Near Daewoo Terminal No.1 Nusrat Road, Opp District Court Multan Cantt. Sheary Commercial Center, Vehari Road, Multan M.A. Jinnah Road, Okara College Road, Pakpattan 27- Town Hall Opp. City Park, Rahim Yar Khan Allama Iqbal Road, Sadiqabad District, Rahim Yar Khan Sarwar Shaheed Road, Sahiwal 47-A, Karkhana Bazar, Vehari. 94 -B, Iqbal Road, Behind Grain Market 78-W, Roshan Center, Jinnah Avenue, Blue Area Atta Arcade, Ground Floor, Main Boulevard, Near Police Foundation, PWD, Islamabad Plot 14, F-11, Markaz, Islamabad 2-G, Capital Business Center, F-10 Markaz, Islamabad Rawal Arcade, Markaz F-8, Islamabad 3-G, Monawwar Plaza, C10 Markaz I-10, Islamabad Shop 1, Plot 12 D, Jinnah Supermarket, F-7 Markaz, Islamabad 15-West, Jinnah Avenue Blue Area, Islamabad Shop # 8,11 Usman Plaza Main Murree Road, Bara Koh, Islambad G-10 Markaz Branch, Islamabad 15, Markaz F-7, Opposite FG College for Women, F-7/2 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

BRANCH NETWORK
NORTH REGION
202

S. NO.
161 162 163

BRANCH CODE
219 246 450 243 235 238 190 259 111 176 177 224 444 254 340 136 415 128 268 146 248 162 449 163 204 245 215 116

REGION
North North North North North North North North North North North North North North North North North North North North North North North North North North North North

BRANCH NAME
Abbottabad Attock Bhalwal Chakwal Chaksawari Daska Dina Dudial Civil Line, Main-Faisalabad Ghulam Muhammadabad, Faisalabad D-Ground, Faisalabad Madina Town, Faisalabad Liaquat Road, Faisalabad Samanabad, Faisalabad Civil Line II, Faisalabad Gujar Khan Gujar Khan Gujranwala Sheikhupura Road, Gujranwala Gujrat Haripur Kharian Kharian Jhang Jhelum Lalamusa Mandi Bahauddin Mirpur (AJK)

CITY
Abbottabad Attock Bhalwal Chakwal Chaksawari Daska Dina Dudial Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Faisalabad Gujar Khan Gujar Khan Gujranwala Gujranwala Gujrat Haripur Kharian Kharian Jhang Jhelum Lalamusa Mandi Bahauddin Mirpur (Ajk)

CONTACT
0992-385919-28 057-2602061-62 048-6642405-08 0543-553932-34 05827-454800-2 052-6614623-4 0544-636824 05827-465813-16 041-2644481-5 041-111-747-747 041-2691375,1262 041-8730443 041-8723432-65 041-2636341-3 041-2563673 041-111-11-22-33 051-3514985 051-3514996 051-3516425 051-3516324 055-3730301-3 055-4240156-60 053-3533315 053-3536781-3 0995—616427-9 053-7536064 053-7536275 047-7623283-84 0544-626001 053-7519576-9 0546-600722-23 05827-445103 05827-445683

BRANCH ADDRESS
841 Farooqabad Main Mansehra Road, Abbotabad Plot # 169 Shaikh Jaffar Plaza Saddiqui Road, Attock City 131-A, Liaqat Shaheed Road Talha Gang Road, Opposite Alliace Travel, Chakwal Khalid Plaza, Main Bazar, Chak Sawari, Mirpur A.J.K. Plot No.3,4 & 5, Muslim Market, Gujranwala, Daska 1880 - Al-Bilal Plaza, GT Road, Dina Hussain Shopping Centre, Main Bazar Branch, Dudial, Azad Kashmir Bilal Road, Civil Lines, Faisalabad 39-B, Usman Plaza, Sadar Bazar Ghulam Muhammad Abad, Faisalabad 447-D, Peoples Colony, Faisalabad Madina Town, Branch Faisalabad P-III, Liaqat Road 650 A, Samanabad, Industrial Labor Colony, Faisalabad Bilal Road, Civil Lines B-111, 215-D, Ward 5, G.T. Road, Gujar Khan Plot No 204/A, Main Gate, Gujar Khan Zia Plaza, G.T. Road, Gujranwala Link Sheikhupura Road, Mohalla Bajwa Colony, Khiali Shahpur Town, Tehsil and District Gujranwala Nobel Furniture Plaza, G.T Road, Gujrat Akbar Arcade, Akbar Khan Plaza, Shahrah-e-Hazara, Haripur Rizwan Plaza, First Floor, GT Road, Near City Hospital, Kharian G.T. Road, Kharian P-10/1/A, Katcheryi Road, Near Session Chowk, Saddar Jhang Kohinoor Bank Square, Old G.T. Road, Jhelum Cantt Shayan Plaza Kaira G.T Road Lalamusa Khasra No.143/112/2 Railway Road, Mandi Bahauddin Ch. Sharif Plaza, Mian Muhammad Road, Opp. Quaid-e-Azam Stadium, Mirpur, Azad Kashmir

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164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188

BRANCH NETWORK
NORTH REGION
203

S. NO.
189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212

BRANCH CODE
191 192 250 411 277 167 249 120 135 168 184 214 234 337 409 267 257 407 261 122 161 405 228 279

REGION

BRANCH NAME

CITY

CONTACT

BRANCH ADDRESS

North North North North North North North North North North North North North North North North North North North North North North North North

University Road Khyber Bazar Peshawar University Camp Peshawar Fakhr-e-Alam Peepal Mandi Peshawar City Rabwah Haider Road Satellite Town Raja Bazar Westridge Sadiqabad Road Kalma Chowk Rawalpindi Main Rawalpindi Gunj Mandi Gulraiz Sarai Alamgir Sialkot II Cantt Sialkot Sialkot Main Sargodha Sargodha Toba Tek Singh Wazirabad

Peshawar Peshawar Peshawar Peshawar Peshawar Peshawar Rabwah Rawalpindi Rawalpindi Rawalpindi Rawalpindi Rawalpindi Rawalpindi Rawalpindi Rawalpindi Rawalpindi Sarai Alamgir Sialkot Sialkot Sialkot Sargodha Sargodha Toba Tek Singh Wazirabad

091-5711401-8 091-2220471 091-5846547-50 091-5285289 091-5270176-8 091-2592800 NA 047-6215072-4 051-5701018-22 051-4424969-72 051-5530661 051-5775623/25/27 051-5166835-37 051-4257745 051-4573741-42 051-5683053-4 051-111321321 051-5795105 051-5539115 051-5533315 051-5596188-9 0544-654623-4 052-4264099 052-4264030 052-4560108-110 052-4292501-3 048-3726033-36 048-3726647-8 046-2517800-809 055-6609523-30

4652-4670, Omer Plaza, Jahangirabad, University Road, Peshawar 417-D, Outside Bajori Gate, Shoba Chowk, Khyber Bazar, Peshawar Ground Floor, Western Corner, Academic Block - II, University of Peshawar 1 Fakhr-e-Alam Road Cantt, Peshawar Ashraf China Trade Centre, Pipal Mandi, Peshawar City Tariq Market, New Rampura Gate, Ashrafi Road, Peshawar City Plot # 09, Gol Bazar Darul Saddar Chenab Nagar Rabwah 32, Haider Road, Rawalpindi Cantt, Rawalpindi 5th Road, City Shopping Centre, Commercial Market, Satellite Town, Rawalpindi U-I, Iqbal Road, Fawara Chowk, Raja Bazar, Rawalpindi Peshawar Road Westridge, RV Arcade, Rawalpindi 72-C, Satellite Town Sadiqabad Road, Rawalpindi Kalma Chowk, Kamalabad, Dhok Syedan Road, Rawalpindi CL / 55 - A, Civil Lines, Meo Road, Rawalpindi Gunj Mandi, Raja Bazar, Rawalpindi Plot No. 27, Gulraiz Scheme II, Rawalpindi RMA Complex, Main GT Road, Sarai Alamgir Paris Road, Sialkot Chamber of Commerce & Industry Building, Aiwan-e-Sannat o Tijarat, Paris Road 100 - A, Aziz Shaheed Road, Sialkot Cantt Plot No.B1-16S-98B, 17-Paras Road, Opp CC & I, Sialkot University Road, Sargodha Khayyam Chowk, Railway Road P-356 A/15-5, ST-6, Chaudhry Park, Farooq Shaheed Road, Toba Tek Singh Ground Floor, Al Rehmat Plaza, Hajipura Chowk, Sialkot Road, Wazirabad FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

DHA. Khatooni No. G. Lahore Cantt.A/1. Block-III. Lahore 894-D. Lahore Khasra No. Phase III. Mauza Begum Kot. Faisalabad 3-Liaquat Road. Karachi C. Lahore V-912. Saddar.Circular Road. Rahim Centre. 3/18/II-B-143. Sheet No. 4B. Akbar Block. Sub-Block-A. Cavalry Ground. 24. Alamgir Road. 1566 & 1567. Gulberg-III. Azam Cloth Market. Plot No. Khayaban-e-Shahbaz. BMCHS. Township. Drig Road Cantt Block-18. Karachi 43-C. Talha Arcade. Outside Shah Alam Gate. G-1. 4. Karachi Shops No. Phase VI. Plot No. Lahore 310/3/1. 118/6-C. Commercial Area. Nazimabad.BRANCH NETWORK ISLAMIC BRANCHES 204 S. Sharafabad. Karachi Shop No. 11-E/2. Leads Centre. Karachi SNPA/6 . Ground. 35/187. Raiwind Road. Market Quarters. (III/A. Karachi Plot Bearing Survey No. Billy’s Height. M.R. KDA Scheme No. KCHS Union Ltd. Paper Market.B. F-1469. Quetta Shop Nos. Qartaba Chowk. Shaheed-e-Millat Road. 1079. Bohbatein Chowk. New Zarghoon Road. C. Gulshan-e-Iqbal. Block 7/8. Gulshan Block. Near Abid Market. 41/474/2. Basement & First Floor.SR-8. Bahawalpur D-Ground Branch 447-D. Block-6. Quetta 1-25/14-15. Faisal Town. Faisalabad FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Azam Cloth Market Branch Lahore Cavalry Ground Baghbanpura Allama Iqbal Town Shahdara Circular Road Township Raiwind Road DHA Z Block Qartaba Chowk Circular Road D-Ground Branch Liaquat Road Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Lahore Bahawalpur Faisalabad Faisalabad . Ferozepur Road. Karachi No. Allama Iqbal Town. Plot No. Bilal Market Chowk. Shalamar Bagh. 36. Peco Road. Karachi KM Center. Karachi First Floor. 1/16).1.P.130 & 130/1. Bolton Market. Plot No. Shahdara. 4A. Circular Road. Lahore Shop No. G-1 To G-4. Plot No. 12 to 14. Fl-2/4. Karachi Shop No.20. Khewat No. Lahore 97-Commercial Area. Deh Okewari. Union Area. Gulistan-e-Jauhar. KDA Scheme No. Hassan Ali Effendi Road. Korangi Road DHA Phase-1. Lahore 10-Z. DHA.T Road. Mozang Chungi. Syed Aale-Hassan Memorial Lodge. Baghbanpura. 16. Berar Cooperative Housing Society. Hyderabad Near Bukhari Petroleum Services. Qandhari Bazaar. Peoples Colony 1 D-Ground. Lahore 33. Lahore 3-B. Row No. 600. NO. 128. 1 2 3 BRANCH CODE 3001 3007 3010 400 443 3015 3027 3031 3026 3043 3042 3004 3018 3006 3008 421 3016 3025 3029 3033 3032 3037 3038 3040 3039 3003 3021 REGION South South South South South South South South South South South South South Center Center Center Center Center Center Center Center Center Center Center Center Center Center BRANCH NAME Sharafabad Branch Nazimabad Branch Jodia Bazar Branch DHA Phase 1 Shaheed-e-Millat Gulistan-e-Jauhar Paper Market Khy-e-Shahbaz Dhoraji Gulshan-e-Iqbal Saddar Zarghoon Road Branch Qandhari Bazaar Leads Centre Branch CITY Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Karachi Hyderabad Quetta Quetta Lahore CONTACT 021-34923770 021-36613048 021-32463262 021-35311473 021-34311657 021-34026831 021-34026826 021-32213945-8 021-32213942-3 021-35342364-7 021-35342388 021-34860851-2 021-34860855 021-34819572-76 022-2730074-77 081-2443144 081-2837890 081-2843005 042-35783953 042-37671348 042-36603417 042-36840318 042-37811069 042-37900268 042-37670501 042-35176002 042-35320406 042-35743741-43 042-37574308 062-2731115-6/ 8 041-8555642 041-2627806 BRANCH ADDRESS Al-Haram 1. Lahore 131/178. Street 1. Sheikhupura Road. Lahore 20.

Noweshera Road. Road. Jamrud Road Hayatabad.T./Royal Plaza. NO. 6 The Mall. Madyan Road. 471-472/203-204. Street No. Mardan 1St Floor. Khan Cantt Plot No. Green Chowk. Peshawar Ground Floor. Amin Tower. 14. Raheem Medical Centre. Survey No. Khan Hangu Road Abbottabad Road Mardan Nowshera Cantt Ashraf Road Hayatabad Branch Peshawar Cantt G. Azad Kashmir Ground Floor. Daska Road.2. 3179/6260. Khan Kohat Mansehra Mardan Nowshera Peshawar Peshawar Peshawar Peshawar Rawalpindi Swat CONTACT 041-2416191 053-3535931 055-3735537 061-4571768 052 -240200 051-2296962-3 051-2222873 05827-437272-3 05827-437259/61/62/70 091-6511011 0966-718903-6 0966-718941-3 0922-522451-454 0997-308301-07 0997-308309-11 0937-871761-2 0923-613404 091-2593365 091-5811572 091-5273091-92 091-5275182 BRANCH ADDRESS Shop No. Rawalpindi Lower Ground & First Floor. 7-L. East Circular Road. Saddar Road.79.1. 651. Mansehra 2174/1. Faisalabad 2-Prince Fan Colony. 253-C.T. Pul Aik. Gujrat 157-Al-Majeed Centre. G. Mirpur. Peshawar Cantt. New Rampura Gate. Shop No. Estate Kharkhano Mkt. 1-7. G. Peshawar Inds. Gujrat Gujranwala Abdali Road Daska Road F-10 Markaz Mirpur Charsadda D.2.I. Peshawar 6.T. Survey No. Abasin Towers. D. F-10 Markaz. Gold Mines Towers. G. Near Gpo Chowk. Near Butt Super Store. Abbottabad Road.BRANCH NETWORK ISLAMIC BRANCHES 205 S.S. Minerwa Road.T. Hangu Road Kohat Cantt Khata/Khatooni No. Tasneem Plaza. Ashraf Road. Road. 14. Sector A/2. Bank Road. 46-50.I. Sialkot Ground Floor. S. G. Peshawar 051-5701060 0946-722015 Century Towers.I. Mingora. Islamabad Akbar Plaza. Charsadda Plot No. Mohalla Faisalabad. New Grain Market. Gujranwala 80-Abdali Road. Katchery Chowk. 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 BRANCH CODE 3014 3017 3030 3022 3023 3024 3019 3020 3036 3035 3034 3011 3028 3041 3002 3013 3012 3005 3009 REGION Center Center Center Center Center North North North North North North North North North North North North North North BRANCH NAME Minerwa Road G. Road. Plot No. Nowshera Shops No. Road The Mall Mingora Branch CITY Faisalabad Gujrat Gujranwala Multan Sialkot Islamabad Azad Kashmir Charsadda D. Swat FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 . Rehman Plaza. Ground Floor. Road.T. Nowshera Cantt.T.19. Multan Plot No. Road.

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

Once an ambitious will is established, life becomes that much more full of possibilities. It keeps us goingº wonderingº dreamingº ≈What more, how else, where now?Δ

GOING BEYOND

GLOSSARY OF TERMS
Accrual Basis
Recognizing the effects of transactions and other events when they occur without waiting for receipt or payment of cash or its equivalent.

208

Bonus Issue (Scrip Issue)
FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

The issue of new shares to existing shareholders in proportion to their shareholdings. It is a process for converting a company s reserves (in whole or part) into issued capital and hence does not involve an infusion of cash.

Capital Adequacy Ratio
The relationship between capital and risk weighted assets as defined in the framework developed by the State Bank of Pakistan.

Cash Equivalents
Short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Cash Reserve Ratio (CRR)
Cash Reserve Ratio is the amount of funds that the banks have to keep with SBP.

Contingencies
A condition or situation existing at Balance Sheet date where the outcome will be confirmed only by occurrence of one or more future events.

Cost / Income Ratio
Operating expenses as a percentage of total income.

Corporate Governance
The process by which corporate entities are governed. It is concerned with the way in which power is exercised over the management and direction of entity, the supervision of executive actions and accountability to owners and others.

Deferred Taxation
Sum set aside for tax in the Financial Statements that will become payable in a financial year other than the current financial year.

Dividend Payout Ratio
Dividends (cash dividend plus bonus shares) paid per share as a fraction of earnings per share (EPS).

Dividend Yield Ratio
Dividend per share divided by the market value of share.

GLOSSARY OF TERMS
Derivatives
Derivative is a financial instrument or other contract which has the following characteristics: (a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the underlying ); (b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and (c) it is settled at a future date.
FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1

209

Effective Tax Rate
Net tax charge divided by the profit before taxation.

Earnings Per Share
Profit after taxation divided by the weighted average number of ordinary share in issue.

Finance Lease
A contract whereby a lessor conveys to the lessee the right to use an asset for rent over an agreed period of time which is sufficient to amortise the capital outlay of the lessor. The lessor retains ownership of the asset but transfers substantially all the risks and rewards of ownership to the lessee.

Forced Sale Value (FSV)
Forced Sale Value means the value which fully reflects the possibility of price fluctuations and can currently be obtained by selling the mortgaged / pledged assets in a forced / distressed sale conditions.

Forward Exchange Contract
Agreement between two parties to exchange one currency for another at a future date at a rate agreed upon today.

Guarantees
An agreement involving a promise by a person (the guarantor) to fulfill the obligations of another person owning debt if that person fails to perform.

Historical Cost Convention
Recording transactions at the actual value received or paid.

Loan Losses And Provisions Amount set aside against possible losses on loans. advances and other credit facilities as a result of their becoming party or wholly uncollectible. Net Assets Value Per Share Shareholders funds divided by the number of ordinary shares in issue. Materiality The relative significance of a transaction or an event the omission or misstatement of which could influence the economic decisions of users of financial statements. Net Interest Income The difference between what a bank earns on assets such as loans and securities and what it pays on liabilities such as deposits. such as deposits with other banks. . refinance funds and inter-bank borrowings. Interest Spread Represents the difference between the average interest rate earned and the average interest rate paid on funds. bills of exchange.GLOSSARY OF TERMS IAS International Accounting Standards 210 IFRS International Financial Reporting Standards FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 IFRIC International Financial Reporting Interpretation Committee Interest In Suspense Interest suspended on nonperforming loans and advances. Net Dividends Dividend net of withholding tax. treasury bills. Liquid Assets Assets that are held in cash or in a form that can be converted to cash readily.

expressed as a percentage of average ordinary shareholders equity. such that assets or income are not overstated and liabilities or expenses are not understated.GLOSSARY OF TERMS NPLs to Gross Advances/Loans Represents the infected portfolio of the bank and is calculated by dividing the total non-performing loans by gross advances. Return On Average Equity Net profit for the year. Repurchase Agreement Contract to sell and subsequently repurchase securities at a specified date and price. FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Non Performing Loan-Loss Category Where mark-up/interest or principal is overdue by one year or more from the due date and Trade Bill (Import/ Export or Inland Bills) are not paid/adjusted within 180 days of the due date Off Balance Sheet Transactions Transactions that are not recognized as assets or liabilities in the balance sheet but which give rise to contingencies and commitments. 211 Non Performing Loan-Substandard Category Where markup/interest or principal is overdue by 90 days or more from the due date. Return On Average Assets Profit after tax divided by the average assets. Prudence Inclusion of a degree of caution in the exercise of judgment needed in making the estimates required under conditions of uncertainty. . less preference share dividends if any. Non Performing Loan-Doubtful Category Where markup/interest or principal is overdue by 180 days or more from the due date. Revenue Reserve Reserves set aside for future distribution and investment. Price Earnings Ratio (P/E Ratio) Market price of a share divided by earnings per share. Reverse Repurchase Agreement Transaction involving the purchase of securities by a bank or dealer and resale back to the seller at a future date and specified price.

FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 Statutory Reserve Funds A capital reserve created as per the provisions of the Banking Companies Ordinance.GLOSSARY OF TERMS Risk Weighted Assets On Balance Sheet assets and the credit equivalent of off balance sheet assets multiplied by the relevant risk weighting factors. . 212 Shareholders Funds Total of Issued and fully paid share capital and capital and revenue reserves. 1962. Weighted Average Cost of Deposits Percentage of the total interest expensed on average deposits of the bank for the period.

In case of proxy. 2012 Witness: 1. A member entitled to attend and vote at the above Annual General Meeting is entitled to appoint another member as a proxy to attend and vote on his/her behalf. Noble Computer Services (Pvt. 3. The CDC Account Holders and Sub-account Holders. House of Habib Building (Siddiqsons Tower) 3-Jinnah Co-operative Housing Society._________________________ Revenue Stamp Rs. signed and witnessed. Representative(s) of corporate member(s) should bring usual documents required for such purpose. Karachi -75350. Main Shahrahe-Faisal.) Limited. Karachi -75350. / Participant s ID/CDC sub Account No __________________________________ or failing him/her __________________________________ of ________________________________________ as my / our proxy to vote and act for me / us on my / our behalf at the Annual General Meeting of the Bank will be held on March 28. Main Shahrah-e-Faisal._________________________ Notes: 1. 2. Such Account Holders and Sub-Account Holders should also bring/know their respective participation I. save that a corporation being a member may appoint as it proxy or officer of such corporation whether a member of the company or not. Members are required to timely notify any change in their address to Bank s Registrar/Share Transfer Agent M/s. he/she must enclose an attested copy of his/her CNIC or passport. 2012 (both days inclusive) Transfer received at the Registrar and Share Transfer Agent of the Bank by the close of business on March 20. House of Habib Building (Siddiqsons Tower) 3-JinnahCo-operative Housing Society. as per Register Folio No.213 FAY S A L B A N K A N N U A L R E P O RT 2 0 1 1 FORM OF PROXY I/We__________________________________________________________________________________________ of ________________________________________________________________________________________________ a member (s) of FAYSAL BANK LIMITED and holding ________________________ ordinary shares. Signed ______________________ day of ______________________. ____________________________________ hereby appoint ________________________________________________________ Folio No. the Registrar and Share Transfer Agent of the bank not later than 48 hours before the time of holding the meeting and must be duly stamped. 2012 and at any adjournment thereof.) Limited. 2012 to March 28. and the CDC Account No. 4. Noble Computer Services (Pvt. First Floor.D. The Share Transfer Books of the Bank shell remain closed from March 21. First Floor. . whose registration details are available in the Share Book Details Reports shall be required to produce their respective original Computerized National Identity Card (CNIC) or original passport at the time of attending the Annual General Meeting to facilitate identification. This instrument appointing a proxy and the power of attorney or other authority (if any) under which it is signed or a notarially certified copy of the power or authority shall be deposited at the office of M/s. 2012 will be treated in time. 5/Signature of Member (s) 2. / Participant s ID/CDC sub Account No. No.

BANK ON AMBITION .