Contents

Company Information

2

Notice of Annual General Meeting

3

Directors’ Report to the Shareholders

7

Statement of Compliance with Code of Corporate Governance

11

Statement on Internal Controls

13

Auditors’ Review Report on Statement of Compliance

16

Auditors’ Report to the Members on Unconsolidated Financial Statements

17

Unconsolidated Statement of Financial Position

19

Unconsolidated Profit and Loss Account

20

Unconsolidated Statement of Comprehensive Income

21

Unconsolidated Statement of Changes in Equity

22

Unconsolidated Cash Flow Statement

23

Notes to the Unconsolidated Financial Statements

25

Auditors’ Report to the Members on Consolidated Financial Statements

113

Consolidated Statement of Financial Position

114

Consolidated Profit and Loss Account

115

Consolidated Statement of Comprehensive Income

116

Consolidated Statement of Changes in Equity

117

Consolidated Cash Flow Statement

118

Notes to the Consolidated Financial Statements

120

Financial and Management Services (Private) Limited

203

Auditors’ Report to the Members

204

Balance Sheet

206

Profit and Loss Account

207

Pattern of Shareholding

208

Branch Network

210

Proxy Form

Annual Report 2015

1

Company Information

Board of Directors

Teo Cheng San, Roland
Tejpal Singh Hora
Lee Boon Huat
Lee Ah Boon
Asif Jooma
Najmus Saquib Hameed
Muhammad Abdullah Yusuf
Atif R. Bokhari

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

Board Audit Committee

Muhammad Abdullah Yusuf
Lee Ah Boon
Najmus Saquib Hameed

Chairman
Member
Member

Board Risk Management Committee

Tejpal Singh Hora
Asif Jooma
Lee Boon Huat
Atif R. Bokhari

Chairman
Member
Member
Member

Board Nomination & Remuneration Committee

Lee Boon Huat
Asif Jooma
Atif R. Bokhari

Chairman
Member
Member

Company Secretary

Ather Ali Khan

Chief Financial Officer

Yameen Kerai

Registered Office

First Floor, Post Mall
F-7 Markaz, Islamabad

Head Office

PNSC Building
M.T. Khan Road
Karachi-74000
UAN: +9221 111 333 111

Email & URL

Email : info@nibpk.com
URL : www.nibpk.com

Share Registrar Office

THK Associates (Pvt.) Limited
State Life Building No. 3
Dr. Ziauddin Ahmed Road
Karachi-75530
UAN: +9221 111 000 322

Auditors

M/s. KPMG Taseer Hadi & Co.
Chartered Accountants

Legal Advisor

M/s. Mandviwalla & Zafar
Advocates

Credit Rating

Long Term
: AAShort Term
: A1+
Rating Agency : PACRA

2

Annual Report 2015

Notice of Annual General Meeting

Notice is hereby given that the Thirteenth Annual General Meeting (AGM) of NIB Bank Limited (“the Bank”) shall be held
at 3:30 pm on Monday, 28 March 2016, at Islamabad Serena Hotel, Khayaban-e-Suhrawardy, Islamabad, to transact
the following business:
ORDINARY BUSINESS:
1.

To confirm the minutes of the Annual General Meeting held on 27 March 2015.

2.

To receive, consider and adopt the Audited Accounts of the Bank for the year ended 31 December 2015 together with
Directors' and Auditors' Reports thereon.

3.

To appoint auditors and fix their remuneration. M/s. KPMG Taseer Hadi & Co., Chartered Accountants, have offered themselves
for re-appointment.

4.

To elect the directors of the Bank for a period of 3 (three) years in accordance with the provisions of Section 178 of the
Companies Ordinance, 1984. The number of directors to be elected has been fixed as 8 (eight) pursuant to the provisions
of section 178(1) of the Companies Ordinance, 1984. The following directors are retiring and are eligible for re-election:
a)
b)
c)
d)
e)
f)
g)
h)

Teo Cheng San, Roland
Tejpal Singh Hora
Lee Boon Huat
Lee Ah Boon
Asif Jooma
Muhammad Abdullah Yusuf
Najmus Saquib Hameed
Atif R. Bokhari

SPECIAL BUSINESS:
5.

To consider and, if deemed fit, pass the following resolutions as 'Special Resolutions', with or without modification, for alteration
in the Articles of Association of the Bank:
RESOLVED that the proposed alterations in the Articles of Association of NIB Bank Limited, as detailed in the Statement
under Section 160(1)(b) of the Companies Ordinance, 1984 annexed with this notice, be and are hereby approved.

FURTHER RESOLVED that the Chief Executive Officer and / or the Company Secretary be and are hereby authorized
singly to carry out all steps and actions necessary, ancillary and incidental for altering the Articles of Association of the Bank
including filing and submitting of all requisite documents / statutory forms as may be required to be filed with the Registrar
of Companies and complying with all other regulatory requirements so as to effectuate the alteration in the Articles of
Association and implementing the aforesaid resolution.
6.

Any other business with the permission of the Chair.
Statements as required under Section 160(1)(b) of the Companies Ordinance, 1984 setting forth all material facts concerning
the special business contained in the Notice to be considered at the meeting are annexed to the Notice of the meeting being
sent to the members.

By Order of the Board

Karachi
7 March 2016

Ather Ali Khan
Company Secretary

Annual Report 2015

3

2. along with a proxy form. 4 Annual Report 2015 . including the election of Board Members. a shareholder may.com/about-us/wp-content/ uploads/2014/03/Dividend-E-Mandate-Option. SECP. has announced an e-dividend mechanism where shareholders can have their dividend credited directly into their respective bank accounts electronically by authorizing the Company to electronically credit their dividend to their accounts. In pursuance of the directives given by SECP vide Circular No. please note that in the absence of a shareholder's valid CNIC. Electronic Payment of Dividend / E-mandate (Optional): For the efficient cash dividend disbursement. Submission of Copy of CNIC (Mandatory): In accordance with SECP's directives.Notice of Annual General Meeting Notes: 1. 1984. Detailed guidelines are available in Circular 1 of 26 January 2000 issued by SECP. if he / she so desires. In case of a corporate entity. 5. and must be duly stamped. The shareholders through CDC are requested to bring their original CNIC / passport. signed and witnessed. 18 of 2012 dated 5 June 2012. the Board of Directors' resolution / power of attorney with specimen signature shall be submitted along with a proxy form to the Bank. direct the Company to pay dividend through his / her / its bank account. 3. no later than 48 (forty eight) hours before the time of the meeting. In case of a corporate entity. Every candidate who seeks to contest the election. Shareholders holding physical shares who have not yet submitted their valid CNICs are requested to provide attested. to the Bank. M. Proxies / Participation in the Annual General Meeting: A shareholder entitled to attend and vote at this meeting may appoint another shareholder as his / her proxy to attend and vote. shareholders may send their details to the Company's Shares Registrar using the format mentioned above. shareholders may authorize the company to directly credit cash dividend to their account. In case shareholders do not wish to avail this facility may ignore this notice. whether he is retiring director or otherwise. Dividend Mandate (Optional): Under Section 250 of the Companies Ordinance. Karachi. proxies must be received at the Head Office of the Bank situated at PNSC Building. CDC shareholders are requested to send their bank account details to their respective participant / investor account services. 4.pdf) Please note that providing a bank mandate for dividend payments is optional. the Company will be obligated to withhold dispatch of dividend warrants (if any) to such shareholders. 8(4) SM/CDC 2008 of 5 April 2013. Pakistan. Proxies of the shareholders through CDC shall be accompanied with attested copies of their Computerized National Identity Card (CNIC) or passport. This voting system also enables the shareholders to have a voice on specific issues. In case of shares in physical form. through its Circular No. If they want to avail the direct credit facility for a dividend amount. In order to be effective. it is mandatory for all shareholders to have their valid CNIC number recorded with the company. 6. Change of Address: Shareholders are requested to notify the Bank or Shares Registrar of any change in their addresses immediately. cumulative voting system will be adopted. Further. clear copies of their valid CNICs with their folio numbers to the Company's Shares Registrar. the Board's Resolution / power of attorney with specimen signature shall be furnished. shall file with the Bank at least 14 days before the meeting a notice of his/her intention to offer himself/herself for election as director along with his/her consent in the prescribed form to his/her appointment as director of the Bank along with declaration as required under the Code of Corporate Governance (Listing Regulations) and “Fit and Proper Test” affidavit and a complete set of documents as required in terms of State Bank of Pakistan's Prudential Regulations. or split the votes up between different candidates. This voting system allows all the shareholders to cast all of their votes to a single candidate. Khan Road. Accordingly. In case of voting. Closure of Share Transfer Books: Share Transfer Books of the Bank will remain closed from 19 March to 28 March 2016 (both days inclusive). shareholders may provide the necessary information to the Company's Shares Registrar using the format available on the Bank's website (Link: http://nibpk.T. account number and participant account number at the time of attending the meeting.

If shareholders would like to avail video conferencing facility. Signature of Member 10.5% and 17. The Company will intimate members regarding the video conference facility venue at least 5 days before the date of the AGM along with the complete information needed to access the facility. PNSC Building. Please inform the Company's Shares Registrar in case shareholding is in physical form. as per above. State Life Building No.fbr. or in case of physical shareholding. shareholders who desire to receive Annual Financial Statements via email in future instead of by post are advised to provide formal consent along with a valid email address on a standard request form which is available on the Company's website (Link: http://nibpk. along with a copy of their CNIC / PoA to the Company's Shares Registrar. Corporate bodies (non-Individual shareholders) should ensure that their names and National Tax Numbers (NTN) are included in the Active Tax Payer List on the FBR website and recorded by respective participant / investor account services. the company will arrange a video conference facility in that city subject to availability of such facility in that city. 'Filer' and 'Non-Filer' shareholders withholding tax will be deducted on dividend income at the rates of 12. In case shareholders do not wish to avail this facility.pk/ as well as ensuring that their CNIC / passport number has been recorded by the participant / investor account services. Contact Addresses : Company Secretary.com/aboutus/wp-content/uploads/2014/03/NIB-Bank-Annual-Financials-through-Emails. to participate in the meeting through video conference at least 10 days prior to date of meeting. 3. 2001.) Limited. enhanced rate of withholding tax on dividend amount has been prescribed in the Income Tax Ordinance. _______________ of ______________./CDC No. whereas 'nonfiler' is person other than a 'filer'.gov. if the Company receives consent from members holding in aggregate 10% or more shareholding residing at a geographical location. Annual Financial Statements will be sent to your registered address by post as per normal practice. holder of __________ Ordinary Share(s) as per Register Folio No. Deduction of Withholding Tax on Dividend Income: Pursuant to the provisions of Finance Act 2015. may send consent to the Company 10 days before the AGM in the following format: I/We. Therefore. by the Company's Shares Registrar. Khan Road. members can avail video conference facilities at Karachi or Lahore.Notice of Annual General Meeting 7. Karachi. Pakistan (UAN: +9221 111 000 322) Company Annual Report 2015 5 . 9. being a member of NIB Bank Limited. Dr. Video Conference Facility In pursuance of SECP Circular 10 of 2014. Shareholders are therefore requested to please check and ensure Filer status on the Active Tax Payer List (ATL) available on the FBR website http://www.pdf) Shareholders must send a completed and signed copy of this form. M. Please note that providing an email address for the purpose of receiving Annual Financial Statements via email is optional. _______________. A 'filer' is taxpayer. Transmission of Annual Financial Statements via Email: In pursuance of the directions given by SECP vide SRO 787 (I)/2014 dated 8 September 2014. 8.5% respectively. in case shareholding is in book entry form.T. Karachi. Pakistan (UAN: +9221 111 333 111) Shares Registrar : THK Associates (Pvt. whose name appears in the Active Taxpayer List(ATL) issued by FBR from time to time. hereby opt for video conference facility at ______________. Ziauddin Ahmed Road. As per this criteria. may ignore this notice. NIB Bank Limited.

Amendment in Articles of Association To consider and approve the following amendments in the Articles of Association of the Bank. communicated through Notification # SRO 43(I)/2016 dated 22 January 2016. Existing and suggested Article given below: Existing Article 57 The instrument appointing a proxy and the power-of-attorney or other authority (if any) under which it is signed. 52A. Existing and suggested Article given below: Existing Article 56 The instrument appointing a proxy shall be in writing under the hand of the appointer or of his attorney duly authorised in writing.Notice of Annual General Meeting Statement under Section 160(1) (b) of the Companies Ordinance. or a notarially certified copy of that power or authority. in case of E-voting. 6 Annual Report 2015 Deposit of Instrument of Proxy . addition of a sentence “in case of E-voting both members and non-members can be appointed as proxy”. addition of a sentence “For the purposes of E-voting. Addition of the following new Article bearing No. the instrument appointing the proxy shall be in such form and provided to the Company in the manner stipulated under the applicable laws”. or a notarially certified copy of that power or authority. related to E-voting. the instrument of proxy shall not be treated as valid. shall be deposited at the registered office of the Company not less than forty-eight hours before the time for holding the meeting at which the person named in the instrument proposes to vote and in default. The Company shall facilitate E-voting in the manner and as per the requirements prescribed by the Commission. both members and non-members can be appointed as proxy. Proxy to be in writing / E-voting At the end of the Article 57. the instrument appointing the proxy shall be in such form and provided to the Company in the manner stipulated under the applicable laws. the instrument of proxy shall not be treated as valid. to be inserted after Article 52: 52A (iii) Members may exercise voting rights at general meetings through electronic means if the Company receives the requisite demand for poll in accordance with the applicable laws. 1984 Item # 5 of the Notice . under Article 2 (Interpretation): E-voting (ii) “E-voting” means the exercise of voting right through an intermediary in accordance with the applicable laws. The directors of the Bank have no direct or indirect interest in the above said special business. Proxy to be in writing Suggested Article 56 (iv) The instrument appointing a proxy shall be in writing under the hand of the appointer or of his/her attorney duly authorised in writing. which has the approval / recommendation of the Board of Directors: (i) Addition of the following definition. A proxy must be a member. Right to Vote through E-voting At the end of the Article 56. shall be deposited at the registered office of the Company not less than forty-eight hours before the time for holding the meeting at which the person named in the instrument proposes to vote and in default. 2016. Notwithstanding the above. Deposit of Instrument of Proxy Suggested Article 57 The instrument appointing a proxy and the power-of-attorney or other authority (if any) under which it is signed. For the purposes of E-voting. A proxy must be a member. in order to facilitate voting through electronic means for the shareholders of the Bank and to bring about and implement the Securities and Exchange Commission of Pakistan's directive under the Companies (E-Voting) Regulations.

all aided by a robust performance monitoring framework. Continuation of security reforms (with the impending retirement of Chief of Army Staff towards year end). Coupled with timely realization of capital gains on long-term bonds. the Sukuk Bond and higher remittances leading to historic high foreign exchange reserves.108 bn a year earlier. NIB has also introduced a customer loyalty program for its debit cards users to increase card activation and attract new customers while at the same time enhancing brand visibility. Shrinking spreads incentivized banks to invest in government securities.617 mn in 2015. the central bank continued its monetary easing by periodically reducing the discount rate by 3% since November 2014 to the current level of 6. Going forward.5% in December 2014. lower credit provisioning and recoveries from NPLs have enabled the Bank to report its highest after tax profit (unconsolidated) of Rs 2. multilateral inflows. Non-performing loans for the sector remained almost flat between December 2014 and September 2015. The program ensures a disciplined sales effort with each member of the sales job family following an activity based regimen. business volume planning and service fundamentals implementation. advisory and syndications to compensate for shrinking credit spreads and improve risk-adjusted returns. the strategy is more restrictive. loss of competitiveness. The Government has set itself a growth target of 5. going forward. Imports were down 10% largely on account of the substantial decline in international oil prices.2% compared to 4. resulting in the lowering of the trade deficit by 8. fiscal discipline and manageable trade deficits will remain the key challenges for the government.0% during the previous period. At the same time certain exposures in high risk sectors/geographies are either being curtailed or managed out. The external account position strengthened on the back of lower commodity prices. registering a 32% increase to Rs 6.83%. Key outputs include new to bank customer momentum. Capital Adequacy Ratio of the industry improved to 18. The Bank also launched a sales and service management program called “NIB Inspire” across the country. all Commercial branches were brought under the umbrella of the Retail Bank during the year. Annual Report 2015 7 .56% of the portfolio. The increase in loans will help mitigate the yield erosion with long-term bonds maturities due in 2016.50%. limiting exposure to large companies in profitable sectors with a proven track record.5% for the fiscal year 2015-16. Consequently the advances to deposit ratio (ADR) declined by 2% during the year with advances and deposits increasing by 7% and 12% respectively. poor crop production and falling commodity prices led to 11% reduction in exports in Jul-Dec 2015 compared to the same period last year. The Bank is growing its Consumer Finance portfolio around robust risk parameters and strict policy guidelines. In the Corporate segment the Bank continues to follow a prudent growth strategy restricted to reputable companies with high potential for trade. Substantial productivity improvements of Retail relationship managers are already visible from the implementation of this initiative from early 2015. improvement in regional ties. BANKING SECTOR Banking sector profitability remained adversely impacted by low interest rates with spreads between loans and deposits between CY 2014 and CY 2015 reducing by 0.726 bn in December 2015 from Rs 5. A strong operating performance.Directors’ Report to the Shareholders THE ECONOMY The macro economic indices improved during CY 2015 due to reforms implemented by the government under the IMF program coupled with the positive impact of declining global oil prices. The China Pakistan Economic Corridor (CPEC) agreement is expected to generate USD 46 bn of investment flows in transport infrastructure and energy projects over the next 15 years. With lower inflation and improving current account balance. a stable macroeconomic environment and increased economic activity are expected to increase credit growth both on the corporate as well as the consumer side. which combined with higher tax collections led to a narrowing of the fiscal deficit. On the external front. net credit losses to date have been limited to 0.7% between the two periods. The declining Consumer Price Index on the back of lower food and commodity prices led to a lowering of interest rates. OPERATING RESULTS Higher than market growth in deposits and loans during the year combined with effective balance sheet management in a declining interest rate environment has led to the NIB's net interest income growing by 22% in 2015 over 2014. With a view to improving organizational efficiency and responsiveness to customer needs the Bank also re-organized its Retail and Branch management structure. as GDP growth during July-June 2015 increased to 4. The reduction in the discount rate is expected to spur economic activity through private sector credit growth as well as in reducing the government's debt financing costs. the economy performed better. with the infection ratio reducing during the period. To effectively reinforce our “One Bank” value and fully leverage the branch network. Its success is evident from the fact that following the re-launch of auto loans (Q3 2012) and personal instalment loans (Q1 2014). top-line revenue in 2015 grew by 37% over the previous year. lower interest rates. In the Commercial segment. Overall.2% in September 2015 from 17.

Being aware of their responsibilities under the Code of Corporate Governance. On a consolidated basis. Consequently. subject to approval from the State Bank of Pakistan. net credit provisioning is lower by Rs 1. reduced gross interest income by 2% in 2015 compared to 2014. in his place Mr. The Bank earned a profit after tax (unconsolidated) of Rs 2. Atif R. Pro-active management of the loan portfolio during the year has resulted in substantially lower credit provisioning compared to the previous year. core staff costs have been reduced. the profit after tax is Rs 2. Lee Ah Boon has been appointed by the Board. Appropriate accounting policies have been consistently applied in preparation of financial statements. in place of Mr. By re-arranging responsibilities. Expenditures on IT and other services are continuously being re-assessed to extract the best value for money while ensuring both internal and external service standards are not compromised. challenged by the imposition of withholding tax on transactions of account holders who do not file income tax returns. Chia Yew Hock Wilson has also resigned with effect from 30 January 2016. The Bank's branch footprint.198 mn. The strong financial performance in 2015. While achieving top-line revenue growth the Bank has taken a number of initiatives to restrict growth in administrative expenses. respectively. the Bank was compliant with the provisions of the Code of Corporate Governance. These ratings denote a very low expectation of credit risk. Lee Boon Huat (independent director) has been appointed with effect from 1 June 2015.337 mn in 2015 compared to 2014. CASUAL VACANCIES ON THE BOARD During 2015. 4.100 mn. present fairly its state of affairs. A robust operational and credit risk framework will positively impact recoveries from non-performing loans and ensure sustainable earnings growth in the future. Mr. product suite and technology infrastructure should generate a stronger operating performance in the future. administrative expenses in the fourth quarter of 2015 are 15% lower than in Q4 2014. boosting employee morale and confidence has built a strong growth momentum going into 2016. Bokhari has been appointed as President & Chief Executive Officer / Director of the Bank with effect from 7 January 2015.551 mn in 2015 (loss of Rs 621 mn in 2014). remains a challenge for the industry. APPOINTMENT OF PRESIDENT & CEO During 2015.Directors’ Report to the Shareholders Declining interest rates coupled with competitive pressure on loan yields from excess liquidity. PACRA has also assigned rating of “A+” (Single A plus) to the listed. CORPORATE GOVERNANCE During the year under review.617 mn in 2015 compared to an after tax loss of Rs 508 mn in 2014. the Board of Directors state that: The Financial Statements prepared by the management of the Bank. unsecured and subordinated TFC issue of PKR 4. NIB has progressively narrowed the gap between its deposit cost of funds to the rest of the banking industry. cash flows and changes in equity. Relentless recovery efforts have continued to generate provision reversals and recoveries in 2015 from Corporate. As a result of these initiatives. Active management of cost of funds and money market arbitrage led to a decline of 10% in gross interest expense in the same period. Proper books of accounts of the Bank have been maintained. the Board has decided to sell PICIC Asset Management Company Limited (wholly owned subsidiary of the Bank) to HBL Asset Management Limited at a price of Rs. 8 Annual Report 2015 . Mr. reducing overlap in product and segment groups. the results of its operations. Concurrently. service and cross-sell with targeted incentives will further strengthen the NIB franchise. Badar Kazmi. A single-minded focus on sales. the need to maintain the pace of deposit mobilization in a highly competitive market. leading to net interest income growing by 22% in 2015 over 2014. CREDIT RATING The Pakistan Credit Rating Agency (PACRA) has maintained the long term rating and short term entity ratings of NIB Bank at “AA-” (Double A minus) and at “A1+” (A one plus) respectively in June 2015. Accounting estimates are based on reasonable and prudent judgment. Commercial and Consumer portfolios. Mr. During 2016. Ong Kian Ngee (non-executive director) resigned from the Board of Directors of the Bank and in his place Mr. with a larger proportion in cash as opposed to debt asset swaps. See details at Notes 15 and 17 of Unconsolidated and Consolidated Financial Statements. Mobilization of a core base of current and low cost deposits remains the key priority for the Bank. DIVESTMENT FROM PICIC ASSET MANAGEMENT COMPNAY LIMITED During 2015. reducing management layers and increasing spans of control.

05) 3.235 (12.1.029 60. as detailed in the listing regulations of Stock Exchange.169 164. as required by the Code.497 17.794 13.34) 2.715 7.642 5. Bokhari Badar Kazmi * Ong Kian Ngee** Chia Yew Hock Wilson*** Eligible to attend Meetings Attended Eligible to attend Meetings Attended Eligible to attend Meetings Attended 7 7 5 7 7 7 7 1 7 7 7 5 6 7 7 7 1 6 4 4 4 4 4 4 4 2 4 4 1 - 4 2 3 4 1 - Nomination & Remuneration Committee Meetings Eligible Meetings to attend Attended 2 4 4 2 2 2 4 4 2 2 * Mr.844 85.422 5.Directors’ Report to the Shareholders International Financial Reporting Standards. ** Mr.418 1.677 103. Ong Kian Ngee resigned with effect from 22 April 2015.669 130.044) (0.617 0.625 1.033.241 0.25 3.029 93.906 5.004 2.655 103.476 103.325 14.896 177.480) (2.029 82.029 71.856 2.663 40.112) (2.437 4. Annual Report 2015 9 .609 14.377/.029 103. Chia Yew Hock Wilson resigned with effect from 30 January 2016.664 105.50) During 2015 the following Board and sub-committees meetings were held and were attended by the Directors as follows: Board Meetings Audit Committee Meetings Risk Management Committee Meetings Name of Directors Teo Cheng San.568 15. There has been no material departure from the best practices of Corporate Governance. Trading during the year. Roland Tejpal Singh Hora Lee Boon Huat Asif Jooma Muhammad Abdullah Yusuf Najmus Saquib Hameed Atif R.027 2.respectively (unaudited).540/and Rs.017.140 103.063. There are no significant doubts upon the Bank's ability to continue as a going concern.817 3.116. one director has completed the “Directors' Training Program” offered by the Pakistan Institute of Corporate Governance.409 4.999 6.12 2.566 99. As of 31 December 2015. In 2015.110 193.564 91.291 190.152 4.001 104. An Orientation Program was also organized and attended by Directors and Senior Management of the Bank.945 (3.488 154. if any. Six years' financial data for NIB Bank on an unconsolidated basis is provided hereunder: Rs mn Advances Deposits and other accounts Total Assets Net Assets Share capital Net Mark-up / Interest Income Total Non Mark-up / Interest income Total Non Mark-up / Interest expense Profit / (Loss) before taxation Profit / (Loss) after taxation Basic / diluted earnings / (loss) per share (Rupees) 2015 2014 2013 2012 2011 2010 110.949 1.233 145 38 0. are disclosed in the pattern of shareholding. Badar Kazmi resigned with effect from 7 January 2015. the purchase value and value of investments of the Provident Fund were Rs. *** Mr.029 74. The system of internal control is sound in design and has been effectively implemented and monitored.303 (84) (508) (0.1.079 2.622) (10.286 2. carried out by Directors. Dividend has not been declared for the year due to lack of earnings.350 13.929 6.445 243. as applicable in Pakistan. Executives and their spouses and minor children. have been followed in preparation of the financial statements and any departure therefrom has been adequately disclosed and explained. in the shares of the Bank. Leave of absence was granted in case the directors were not able to attend the meeting.

PATTERN OF SHAREHOLDING The pattern of shareholding as at 31 December 2015 is included in the annual report.) Environmental projects and Initiatives directed at preserving Promoting Pakistan Culture In 2015. Roland Chairman 10 Annual Report 2015 Atif R. for repeatedly demonstrating its commitment to the Bank. plays an active role in supporting different social causes in Pakistan. i) formation of Customer Experience Council which meets on periodic basis to discuss the key customer impacting issues and remedies. Chartered Accountants retire and. the objective was to ensure that staff is conversant with the fundamentals of customer handling and retention skills. ACKNOWLEDGMENT NIB Bank is grateful to Temasek Holdings. being allowed have offered themselves for re-appointment in the forthcoming Annual General Meeting. KPMG Taseer Hadi & Co. The focus of our CSR activities is on the following areas: l l l l l Education Community Health Disaster Response (Earthquakes. In line with the 7 guiding principles of the policy. NIB Bank is also very grateful to its minority shareholders for their patience and perseverance and most of all to its customers who continue to demonstrate very strong loyalty to NIB Bank. The Bank's performance in the past year would not have been possible without the tireless efforts and dedication of its employees and for that they deserve a special thank you. 7 of 2004.e. 2 of 2005 and Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). vi) development of a comprehensive in-house Voice of Customer Platform which delivered insight on customer satisfaction. CORPORATE SOCIAL RESPONSIBILITY NIB Bank. through its Donations. and vii) adopted various mechanisms to ensure that customer complaints are being catered timely and effectively. criminal activities and violation of code of conduct. BSD Circular letter No. SECP and other regulatory bodies have always guided the Bank well and have given their full support which is highly appreciated. who through its subsidiaries Fullerton Financial Holdings Pte Limited and Bugis Investments (Mauritius) Pte Limited (the majority shareholder).. The Board of Directors on the suggestion of the Audit Committee recommends their appointment for the next term. there were two notable projects in this regard i. ii) customer experience trainings conducted for all front end and relevant support functions across the country. The management's statements are included in the annual report. iv) financial awareness program for customers through social media and bank's website. The SBP. AUDITORS The present auditors M/s. Bokhari President & CEO . FAIR TREATMENT OF CUSTOMER/CUSTOMER EXPERIENCE INITIATIVES: In line with the State Bank of Pakistan's guidelines. psychographic insight and anti-attrition analysis. iii) fair and transparent pricing mechanism adopted. NIB Bank has developed and implemented Financial Consumer Protection Policy on Fair Treatment of Customer duly approved by the Board of Directors.Directors’ Report to the Shareholders INTERNAL CONTROL AND RISK MANAGEMENT FRAMEWORK The Board is pleased to endorse the statements made by the management relating to internal control and the risk assessment framework to meet the requirement of the State Bank of Pakistan (SBP) BSD Circular No. Contributions and Corporate Social Responsibility (CSR) efforts. i) Bank-wide blood donation drive in association with Fatimid Foundation and ii) Bank-wide staff competition to celebrate Independence Day on 14 August 2015. On behalf of the Board Teo Cheng San. Bank also initiated frequent qualitative tests of complaint handling process. various initiatives were taken in 2015 to enhance the overall Customer Experience i. v) endorsement of control policies to curb the fraud/forgeries attempts. as a responsible corporate citizen. etc. Floods.e.

19 under Rule Book of Pakistan Stock Exchange Limited for the purpose of establishing a framework of good governance. In 2015. The Board held seven meetings during the year (including the required quarterly meetings). 2. including the Bank. 6. The minutes of the meetings were appropriately recorded and circulated. Bokhari The independent directors meet the criteria of independence under clause i(b) of the CCG. including appointment and determination of remuneration and terms and conditions of employment of the CEO and Non-executive Directors have been taken by the Board. the Strategic Intent and Values. Mr. Lee Boon Huat has been appointed as Director in place of Mr. The Bank has applied the principles contained in the Code of Corporate Governance (CCG) in the following manner: 1. 8. All the powers of the Board have been duly exercised and decisions on material transactions. The CFO and Company Secretary attended all the meetings of the Board of Directors during the year. Both. the Board approved the appointment of Mr. The meetings of the Board were presided over by the Chairman.f. The directors have confirmed that none of them is serving as a director in more than seven listed companies. 3. 2015 This statement is being presented to comply with Code of Corporate Governance (CCG) contained in Clause 5.Statement of Compliance with Code of Corporate Governance For the year ended December 31. in place of Mr. were circulated at least seven days before the meetings. An Orientation Program was also arranged for the benefit of directors and senior executives of the Bank. Annual Report 2015 11 . 4. At present the Board includes: Category Name Independent Directors Teo Cheng San. On 7 January 2015. subject to approval from the State Bank of Pakistan. Bokhari has been appointed as President & CEO / Director. as required by the Code. None of the directors of the Bank are members of any Stock Exchange. 7. Roland Asif Jooma Muhammad Abdullah Yusuf Najmus Saquib Hameed Lee Boon Huat Non-executive Directors Tejpal Singh Hora Lee Ah Boon Executive Director Atif R. whereby a listed company is managed in compliance with the best practices of corporate governance. one director has completed the “Corporate Governance Leadership Skills” Directors' Education Program offered by the Pakistan Institute of Corporate Governance. The Bank encourages representation of independent Non-executive Directors on its Board including those representing minority interests. and agreed on brand Values which are expected to be demonstrated by all NIB Bank employees. Written notices of Board meetings. a Development Financial Institution or Non-Banking Finance Institutions. 30 January 2016. Lee Ah Boon. Badar Kazmi and on 1 June 2015 Mr.e. Chia Yew Hock Wilson w. After resignation of Mr. along with agenda. The Bank has prepared a “Code of Conduct” and has ensured appropriate steps have been taken to disseminate it through the company along with its supporting policies and procedures. 5. Ong Kian Ngee within 90 days. are duly approved by the Board. 9. Atif R. A complete record of particulars of significant policies along with the dates on which these were approved is being maintained. All the resident directors of the Bank are registered as taxpayers and none of them has defaulted in payment of any loan to a banking company. The Bank has established a Strategic Intent.

determined by the CEO. 20.Statement of Compliance with Code of Corporate Governance For the year ended December 31. 11. 21. the Risk Management sub-committee of the Board comprising of 4 members (2 independent. 13. Material / price sensitive information has been disseminated among all market participants at once through stock exchange(s). whereas the Nomination & Remuneration sub-committee of the Board comprising of 3 members (2 independent and 1 executive director) met 4 times. The 'closed period'. 1 non-executive and 1 executive director) met 4 times. During the year. The financial statements of the Bank were duly endorsed by the CEO and CFO before approval of the Board. Company Secretary and Head of Internal Audit and the terms and conditions of their employment. 14. An Internal Audit Policy is approved by the Board. explained above. their spouses and minor children do not hold shares of the Bank and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan. No new appointments during 2015. are duly authorized by the Board of Directors. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Bank as required by the CCG. have been complied with. 16. The Board had approved the appointment of the Chief Financial Officer. 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. 22. prior to the announcement of interim / final results. 19. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review program of the Institute of Chartered Accountants of Pakistan. We confirm that all the material principles contained in the CCG. The Internal Audit department has conducted audit of branches and various departments of the Bank during the year. 17. The Audit Committee comprises of three members. and business decisions. Bokhari President & CEO 12 Annual Report 2015 . employees and stock exchange(s). all of whom are non-executive directors (2 are independent including Chairman). The directors. The Bank has complied with all the corporate and financial reporting requirements of the CCG. The Directors' report has been prepared in compliance with the requirements of the CCG and fully describes the salient matters required to be disclosed. which may materially affect the market price of company's securities. that they or any of the partners of the firm. CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding (if any). was determined and intimated to directors. The terms of reference of the Committee have been formed and advised to the Committee for compliance. The Bank has an effective Internal Audit department. 23. 2015 10. 18. 15. Atif R. 12.

The Bank has also developed a Compliance Risk Management (CRM) tool whereby applicable regulations are tagged to relevant stakeholders entrusted with ownership of specific controls designed to mitigate regulatory risks. Control Activities 11. staff and IT infrastructure and will continue to do so as it grows its business volumes and activities. manuals and other documents to cover all areas of the Bank's business. The Bank is compliant with the risk management guidelines issued by the SBP. The underlying controls are periodically tested by means of a process of self-assessment. 4. Annual Report 2015 13 . external auditors. communication and controls. are duly approved by the Board. Head of compliance function directly reports to the CEO/President of the Bank as per regulatory requirements. and designed for. the Directors have also signed a code of conduct. The Bank has written and implemented policies duly approved by the Board. 5. Risk Assessment 10. procedures. has written terms of reference and reports to the Board. 2015 Internal Control System Management acknowledges its responsibility for establishing and maintaining a system of internal controls directly related to. It reviews the approach adopted by the Bank's internal audit group and the scope of. A governance structure exists that supports clear lines of command. Both. The Bank has adopted a code of conduct that is required to be signed by all employees. 7. It also regularly receives summary of reports from the internal audit group and the external auditors on the system of internal controls and any material control weaknesses that have been identified. 2. which comprises of non-executive directors. 9. Chairman of the Audit Committee also presents highlights of Audit Committee discussions to the Board of Directors with emphasis on any areas of concern.Statement on Internal Controls For the year ended December 31. Management has set up an effective compliance function to ensure ongoing monitoring of the Bank's adherence with all laws and regulations. 8. the Strategic Intent and Values. The Bank has established a Strategic Intent. and the relationship with. The Bank is pleased to make the following disclosures on components of its internal control system: Control Environment 1. Furthermore. providing reasonable assurance to achieve following objectives: • Efficiency and effectiveness of operations • Compliance with applicable laws and regulations • Reliability of financial reporting The Bank has strengthened its internal control system by enhancing the quality of processes. An effective internal audit process exists responsible for evaluation of the Bank's internal control system on a continuous basis. and agreed on Values which are expected to be demonstrated by all NIB Bank employees. 3. 6. The head of internal audit reports directly to the Chairman of Audit Committee. Roles and responsibilities of key management personnel have been defined. The Bank has developed a Business Continuity Plan and tests the Plan at periodic intervals. The Audit Committee.

The Bank has adopted Internal Controls over Financial Reporting (ICFR) as a best practice. 13. Based on the results of an evaluation of the internal control system and key features of the control framework enumerated above.Statement on Internal Controls For the year ended December 31. These Credit Policies are under constant review and updated as and when required. and has an automated transaction monitoring system. As such. 14 Annual Report 2015 . anti-fraud training programs. 2015 12. and comprises of members with credit. it can only provide reasonable. monitoring and controlling of risk. an Integrated Risk Management Group in the Bank formulates risk management Policies and Procedures in line with the Bank's defined strategies and to monitor the following areas: a) Credit Risk Management b) Market and Liquidity Risk Management c) Operational Risk Management d) Information Security Management Credit Risk Management (CRM) CRM is viewed as an ongoing activity where credit risks are regularly identified. and to also recognize and contain inherent risks. and is fully compliant with SBP Roadmap and guidelines as it pertains to ICFR. thereby establishing a robust credit control environment. Risk Management Framework The acceptance and management of financial risk is inherent to banking business activities. Information and Communication 14. In order to achieve earnings targets with a high degree of reliability and to avoid losses through a strong credit process. The Bank has a functioning Management Information System and has developed Key Performance Indicators for its businesses enabling it to monitor budget versus actual performance. The Bank continues to use an e-KYC form and automated transaction monitoring to further strengthen its KYC/AML regime. 16. assurance against material misstatement or loss. the Credit Risk Committee exists and operates centrally from the Head Office. monitored. but not absolute. The Bank has strict Know Your Customer (KYC) /Anti Money Laundering (AML) and Fraud Risk Management policies. designed to manage and mitigate risks. Internal Audit periodically carries out audits for Branches and Head Office functions to monitor compliance with the Bank's standards. management is of the view that the internal control system during the year was acceptable in design and has been effectively implemented throughout the year. assessed and controlled. which have served the Bank well over past four years. To oversee and manage credit risks appropriately. measured. Monitoring 15. and controls in place. Regular portfolio reviews determine the quality of the credit portfolio on an ongoing basis and assist in balancing risk and reward. Management gives due consideration to recommendations made by internal & external auditors as well as those made by the regulators relating to improvements in the internal control system. In accordance with the Risk Management guidelines issued by the SBP. It involves the identification. industry and business expertise. Credit Risk Policies were developed and implemented. It is pertinent to state that development of an internal control system is an ongoing process through which management reviews and strengthens its internal controls. measurement.

and from external events. foreign exchange and equity transactions. Atif R. Risk & Control Self . adding experienced staff. IT Security policies. inadequate systems. focusing on building robust processes and introducing a strong monitoring system as part of the risk management process. Information Security Management (ISM) The Bank has embarked on a program of automation of its internal process. Bokhari President & CEO Annual Report 2015 15 . Operational Risk Management (ORM) Operational risk is the risk of loss resulting from inadequate or failed internal processes. The Bank has an Operational Risk Framework duly approved by the Board which is reviewed after every two years. and has implemented an Operational Risk Framework aligned to international best practices. monitoring. a comprehensive control mechanism has been implemented by restructuring the limit mechanism and introducing notional as well as sensitivity based limits. procedures and technical staffing. credit spreads and/or commodity prices. 2015 Market Risk Management (MRM) MRM is a control function which allows management to closely supervise and monitor risks caused by movements in market rates or prices such as interest rates. measuring.Assessment and capturing Operational Incidents as tools for identification. foreign exchange rates. the Bank has embarked upon an on-going augmentation of IT management policies. The Bank has further strengthened this area by embedding Internal Control over Financial Reporting (ICFR) testing in Operational Risk System and emphasizing on training. The Bank has a well developed Operational Risk System.Statement on Internal Controls For the year ended December 31. errors or mistakes or frauds committed by people. The Bank is using Key Risk Indicators. and security on electronic information / transactions. To improve Bank's control. is responsible for ensuring that market risk parameters are properly adhered to. resulting in a potential loss to earnings and capital. equity prices. The Market and Liquidity Risk Unit under the supervision of Integrated Risk Management Group. during the year 2015. and management of operational risk. monitoring. work flows while also providing its customers an on line banking facility. In order to ensure adequate controls for money market. This program could only be implemented after improving and up scaling the Bank's Information Security Risk Management.

Date: 24 February 2016 Karachi 16 Annual Report 2015 KPMG Taseer Hadi & Co. As part of our audit of financial statements we are required to obtain an understanding of the accounting and internal control systems sufficient to plan the audit and develop an effective audit approach. We are only required and have ensured compliance of this requirement to the extent of approval of the related party transactions by the Board of Directors upon recommendation of the Audit Committee.19 of the listing rulebook of the Pakistan Stock Exchange where the Bank is listed. We are not required to consider whether the Board of Directors' statement on internal control covers all risks and controls or to form an opinion on the effectiveness of such internal controls. A review is limited primarily to inquiries of the Bank's personnel and review of various documents prepared by the Bank to comply with the Code. Based on our review. in all material respects. We have not carried out any procedures to determine whether the related party transactions were undertaken at arm's length price or not. Our responsibility is to review. Chartered Accountants . with the best practices contained in the Code as applicable to the Bank for the year ended 31 December 2015. whether the Statement of Compliance reflects the status of the Bank's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the requirements of the Code. nothing has come to our attention. The Code requires the Bank to place before the Audit Committee. the Bank's corporate governance procedures and risks. The responsibility for compliance with the Code is that of the Board of Directors of the Bank. and upon recommendation of the Audit Committee. place before the Board of Directors for their review and approval of related party transactions distinguishing between transactions carried out on terms equivalent to those that prevailed in arm's length transactions and transactions which are not executed at arm's length price and recording proper justification for using such alternate pricing mechanism. 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.Review Report to the Members on the Statement of Compliance with the Code of Corporate Governance We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance (the Code) prepared by the Board of Directors of NIB Bank Limited (''the Bank'') for the year ended 31 December 2015 to comply with the requirements of rule 5.

b) in our opinion: c) i) the unconsolidated statement of financial position and the unconsolidated profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance. unconsolidated profit and loss account. and iii) the business conducted. evidence supporting the amounts and disclosures in the financial statements. the unconsolidated statement of financial position. An audit also includes assessing the accounting policies and significant estimates made by management. 1984 (XLVII of 1984). 1984 (XLVII of 1984). we report that: a) in our opinion. and the Companies Ordinance. and prepare and present the financial statements in conformity with the approved accounting standards and the requirements of the Banking Companies Ordinance. 1984 (XLVII of 1984). unconsolidated statement of comprehensive income. evaluating the overall presentation of the financial statements. unconsolidated statement of comprehensive income. proper books of accounts have been kept by the Bank as required by the Companies Ordinance. as well as. in which are incorporated the unaudited certified returns from the branches except for 24 branches which have been audited by us and we state that we have obtained all the information and explanations which. were necessary for the purposes of our audit. after due verification. ii) the expenditure incurred during the year was for the purpose of the Bank's business.Auditors’ Report to the Members We have audited the annexed unconsolidated statement of financial position of NIB Bank Limited (“the Bank”) as at 31 December 2015 and the related unconsolidated profit and loss account. 1962 (LVII of 1962). 1962 (LVII of 1962). and the Companies Ordinance. We believe that our audit provides a reasonable basis for our opinion and. It is the responsibility of the Bank's Board of Directors to establish and maintain a system of internal control. unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof (here-in-after referred to as the 'financial statements') for the year then ended. and are in agreement with the books of accounts and are further in accordance with the accounting policies consistently applied except for the change disclosed in note 6 with which we concur. Our responsibility is to express an opinion on these statements based on our audit. which in case of loans and advances covered more than sixty percent of the total loans and advances of the Bank. 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. to the best of our knowledge and belief. 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. on a test basis. in our opinion and to the best of our information and according to the explanations given to us. and the returns referred to above received from the branches have been found adequate for the purposes of our audit. We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. An audit includes examining. unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof conform with approved Annual Report 2015 17 .

and d) in our opinion Zakat deductible at source. Chartered Accountants Amyn Pirani . give the information required by the Banking Companies Ordinance. its cash flows and its changes in equity for the year then ended. 1984 (XLVII of 1984).Auditors’ Report to the Members accounting standards as applicable in Pakistan. 1980 (XVIII of 1980). its comprehensive income. and. 1962 (LVII of 1962). Date: 24 February 2016 Karachi 18 Annual Report 2015 KPMG Taseer Hadi & Co. was deducted by the Bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance. in the manner so required and give a true and fair view of the state of the Bank's affairs as at 31 December 2015 and its true balance of profit. and the Companies Ordinance. under the Zakat and Ushr Ordinance.

Unconsolidated Statement of Financial Position
As at December 31, 2015

Note

2015

2014

(Rupees in ‘000)
ASSETS
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Intangible assets
Deferred tax assets - net
Assets held for sale
Other assets

7
8
9
10
11
12
13
14
15
16

10,052,543
1,645,086
1,599,044
95,743,449
110,668,994
3,086,446
890,491
9,539,749
3,112,731
7,157,979

8,063,675
587,428
7,699,646
59,944,107
93,664,036
2,996,530
1,197,785
10,139,376

9,275,375

243,496,512

193,567,958

2,576,216
85,676,741
130,444,894
4,195,516


3,463,013

2,740,528
62,750,894
105,109,980
4,197,195


3,114,267

226,356,380

177,912,864

17,140,132

15,655,094

103,028,512
997,582
(45,769,623)
(41,195,205)

103,028,512
474,123
(45,769,623)
(43,294,117)

17,061,266
78,866

14,438,895
1,216,199

17,140,132

15,655,094

LIABILITIES
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Liabilities against assets subject to finance lease
Deferred tax liabilities
Other liabilities

17
18
19
20

21

NET ASSETS
REPRESENTED BY :
Share capital
Reserves
Discount on issue of shares
Accumulated loss

22

Shareholders' equity
Surplus on revaluation of assets - net

23

CONTINGENCIES AND COMMITMENTS

24

The annexed notes 1 to 43 and annexure - 1 form an integral part of these unconsolidated financial statements.

Atif R. Bokhari

Teo Cheng San, Roland

Muhammad Abdullah Yusuf

Asif Jooma

President / Chief Executive

Chairman / Director

Director

Director

Annual Report 2015

19

Unconsolidated Profit and Loss Account
For the year ended December 31, 2015

Note

2015

2014

(Rupees in ‘000)
CONTINUING OPERATIONS
Mark-up / return / interest earned
Mark-up / return / interest expensed

25
26

14,737,305
10,095,234

15,071,457
11,254,631

4,642,071

3,816,826

199,229
3,668
2,248

1,536,501
(11,561)
2,421

205,145

1,527,361

4,436,926

2,289,465

27

1,420,931
152,041
357,056
4,021,669

1,616,869
616,012
587,181
509,014

28


46,890


89,578

5,998,587

3,418,654

10,435,513

5,708,119

6,172,262
141,402
95,241

6,096,098
140,376
66,075

Total non-mark-up / interest expenses
Extraordinary / unusual items

6,408,905

6,302,549

Profit / (loss) before taxation from continuing operations

4,026,608

(594,430)

Taxation - Current
- Prior years
- Deferred

207,359

1,201,956

209,901
10,851
197,477

1,409,315

418,229

2,617,293

(1,012,659)

Net mark-up / interest income
Provision against non-performing loans and advances
Provision / (reversal) for diminution in the value of investments
Bad debts written off directly

11.5
10.12

Net mark-up / interest income after provisions
NON MARK-UP / INTEREST INCOME
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Unrealized gain on revaluation of
investments classified as held-for-trading
Other income
Total non mark-up / interest income

NON MARK-UP / INTEREST EXPENSES
Administrative expenses
Other provisions / write offs
Other charges

29
30

31
Profit / (loss) after taxation from continuing operations
DISCONTINUED OPERATIONS
Profit from discontinued operations - net of tax

15

504,900

2,617,293

PROFIT / (LOSS) AFTER TAXATION

(507,759)

(Rupees)

EARNINGS / (LOSS) PER SHARE
Basic and diluted - continuing operations
Basic and diluted - discontinued operations
32

0.25

(0.10)
0.05

0.25

(0.05)

The annexed notes 1 to 43 and annexure - 1 form an integral part of these unconsolidated financial statements.

Atif R. Bokhari

Teo Cheng San, Roland

Muhammad Abdullah Yusuf

Asif Jooma

President / Chief Executive

Chairman / Director

Director

Director

20

Annual Report 2015

Unconsolidated Statement of Comprehensive Income
For the year ended December 31, 2015

Note

2015

2014

(Rupees in ‘000)

Profit / (loss) after taxation for the year

2,617,293

(507,759)

5,078

3,806

2,622,371

(503,953)

(1,137,333)

1,682,853

1,485,038

1,178,900

Other comprehensive income
Items that will not be reclassified to profit or loss in subsequent periods
Actuarial gain on remeasurement of defined benefit obligation

35.4

Comprehensive income - transferred to statement of changes in equity
Components of comprehensive income not reflected in equity
Items that may be reclassified to profit or loss in subsequent periods
Movement in surplus on revaluation of available for sale securities - net of tax
Total comprehensive income for the year

The annexed notes 1 to 43 and annexure - 1 form an integral part of these unconsolidated financial statements.

Atif R. Bokhari

Teo Cheng San, Roland

Muhammad Abdullah Yusuf

Asif Jooma

President / Chief Executive

Chairman / Director

Director

Director

Annual Report 2015

21

Unconsolidated Statement of Changes in Equity
For the year ended December 31, 2015

Reserves
Capital
Note

Share
capital

Discount on Statutory
issue of
reserve
shares
(a)

Revenue
General Accumulated
reserve
loss

Total

(Rupees in ‘000)
103,028,512 (45,769,623)

Balance as at December 31, 2013

468,651

5,472

(42,790,164) 14,942,848

Total comprehensive income
for the year
Loss after taxation for the year

(507,759)

(507,759)

Other comprehensive income
Actuarial gain on remeasurement of
defined benefit obligation

35.4

103,028,512 (45,769,623)

Balance as at December 31, 2014

468,651

5,472

3,806
(503,953)

3,806
(503,953)

(43,294,117) 14,438,895

Total comprehensive income
for the year
Profit after taxation for the year

2,617,293

2,617,293

Other comprehensive income
Actuarial gain on remeasurement of
defined benefit obligation
Transfer to statutory reserve
Balance as at December 31, 2015

35.4




523,459


992,110

5,472

103,028,512 (45,769,623)

5,078
2,622,371
(523,459)

5,078
2,622,371

(41,195,205) 17,061,266

(a) This represents reserve created under section 21(1)(a) of the Banking Companies Ordinance 1962.
The annexed notes 1 to 43 and annexure - 1 form an integral part of these unconsolidated financial statements.

22

Atif R. Bokhari

Teo Cheng San, Roland

Muhammad Abdullah Yusuf

Asif Jooma

President / Chief Executive

Chairman / Director

Director

Director

Annual Report 2015

395) (64) 199.949) Income tax paid 40.454 339.511.126.658.762.192) (169.012) 3.377 551.244.750 1.077.536.994 – (509.972.286) 22.100.210.372) (1.net Provision against non-performing loans and advances Bad debts written off directly Fixed assets written off Provision / (reversal) for diminution in the value of investments Other provisions / write offs (Increase) / decrease in operating assets Lendings to financial institutions Advances Other assets (excluding advance taxation) CASH FLOWS FROM INVESTING ACTIVITIES Annual Report 2015 23 .421 – (11.504 – 152.912 323.669) (5.847 25.net Gain from insurance against loss of fixed assets .247) 4.567 (1.126.229 2.994 6.468 (256.015.561) 140.Unconsolidated Cash Flow Statement For the year ended December 31.442) 304.572.580 Adjustments for non-cash items Depreciation Amortization Impairment charge on tangible fixed assets Gain on sale of securities .436 859.135) 11.776) (215.906 1.925.497 (9.177) (8.014) (36.021.501 2.376 (3.520 (4.971) (8.932) Net investments in available-for-sale securities Net investments in held-to-maturity securities Net investments in associates Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed off Recovery from Insurance company against loss of assets (36.941 (4.156) Net cash generated from / (used in) operating activities 39.127.668 141.924.833.608 (152. 2015 2015 2014 (Rupees in ‘000) CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) before taxation (including discontinued operations) Less: Dividend income (including discontinued operations) 4.573) (162) 1.221 213.026.228) – 70.379) (268.602 (17.041 (272.248 8.012 (327.238) 24.862.915 (464.843 (122.621 3.229.430) (1.874.334.202.041) (84.606 (5.net Gain on sale of operating fixed assets .435) 2.917 27.934) 7.031) 78.130) (13.190) 1.402 300.030 Net cash (used in) / generated from investing activities (36.320) Increase / (decrease) in operating liabilities Bills payable Borrowings Deposits and other accounts Other liabilities (164.568 181 9.914 353.206.975.025.

197.526 (47.697.179) Cash and cash equivalents at beginning of the year 8. 2015 Note 2015 2014 (Rupees in ‘000) CASH FLOWS FROM FINANCING ACTIVITIES (Redemption) / receipt of sub-ordinated loans (1.698.679) 4.Unconsolidated Cash Flow Statement For the year ended December 31.103 8.1 form an integral part of these unconsolidated financial statements. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 . Bokhari Teo Cheng San.629 8.197.103 Dividend paid Net cash (used in) / generated from financing activities Cash and cash equivalents at end of the year 33 The annexed notes 1 to 43 and annexure .195 (45) (22) (1. 24 Atif R.651.046.724) 4.173 Net increase / (decrease) in cash and cash equivalents 3.651.282 11.

Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40. IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. These unconsolidated financial statements have been presented in Pakistan Rupees. 2015 1 STATUS AND NATURE OF BUSINESS NIB Bank Limited "the Bank" is incorporated in Pakistan and its registered office is situated at first floor. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. However. the State Bank of Pakistan (SBP) has issued various circulars from time to time. Limited which in turn is a wholly owned subsidiary of Temasek Holdings. The Bank's ordinary shares are listed on Pakistan Stock Exchange and has 171 branches (December 31. 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. 1962. or when the intangible asset is expressed as a measure of revenue. 2014: 171 branches). which is the Bank's functional and presentation currency. provisions of and directives issued under the Banking Companies Ordinance. interpretations and amendments to published approved accounting standards that are not yet effective The following standards. plant and equipment.1 These unconsolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. 3. 1984 and the directives issued by the SBP. Plant and Equipment (effective for annual periods beginning on or after 1 January 2016) introduce severe restrictions on the use of revenue-based amortization for intangible assets and explicitly state that revenue-based methods of depreciation cannot be used for property. 1984 and the directives issued by the SBP shall prevail. 3 STATEMENT OF COMPLIANCE 3. the Companies Ordinance. Investment Property for banking companies till further instructions. the requirements of these standards have not been considered in the preparation of these unconsolidated financial statements. The Bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance. 3. In case the requirements differ. 1962. Post Mall. 1984. The amounts are rounded off to the nearest thousand rupees. 2008. The purchases and sales arising under these arrangements are not reflected in these unconsolidated financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon.Notes to the Unconsolidated Financial Statements For the year ended December 31. its subsidiaries and associates are presented separately. Accordingly.3 Standards.2 SBP vide BSD Circular No. 2002 has deferred the applicability of International Accounting Standard 39. investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. 1962. the provisions of and directives issued under the Banking Companies Ordinance. The amendments are not likely to have an impact on the Bank's financial statements. the Companies Ordinance. NIB Bank Limited is a subsidiary of Bugis Investments (Mauritius) Pte. dated August 26. an investment arm of the Government of Singapore. The consolidated financial statements of the Bank. 10. Islamabad. Annual Report 2015 25 . F-7 Markaz. according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28. 2 BASIS OF PRESENTATION These unconsolidated financial statements represent separate financial statements of the Bank. amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 January 2016: – Amendments to IAS 38 Intangible Assets and IAS 16 Property. The rebuttable presumption that the use of revenue-based amortization methods for intangible assets is inappropriate can be overcome only when revenue and the consumption of the economic benefits of the intangible asset are ‘highly correlated’. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance. Further.

The above amendments are not likely to have an impact on the Bank's financial statements. reclassifies an asset from held for distribution to owners to held for sale or vice versa without any time lag. The amendments are not likely to have an impact on the Bank's financial statements. if they are not included in the notes to interim financial statements and disclosed elsewhere should be cross referred. Therefore. They require an investor to apply the principles of business combination accounting when it acquires an interest in a joint operation that constitutes a business. bearer plants are accounted for in the same way as self-constructed items of property. IFRS 7 is also amended to clarify that additional disclosures required by ‘Disclosures: Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS7)’ are not specifically required for inclusion in condensed interim financial statements for all interim periods. then it ceases held for distribution accounting in the same way as it would cease held for sale accounting. 2015 – Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10 – Consolidated Financial Statements and IAS 28 – Investments in Associates and Joint Ventures) [effective for annual periods beginning on or after 1 January 2016] clarifies (a) which subsidiaries of an investment entity are consolidated.Notes to the Unconsolidated Financial Statements For the year ended December 31. – Amendment to IAS 27 ‘Separate Financial Statement’ (effective for annual periods beginning on or after 1 January 2016) allows entities to use the equity method to account for investments in subsidiaries. except for 26 Annual Report 2015 . Before maturity. joint ventures and associates in their separate financial statements. plant and equipment during construction. (b) exemption to present consolidated financial statements is available to a parent entity that is a subsidiary of an investment entity. However. - IAS 34 ‘Interim Financial Reporting’. – Agriculture: Bearer Plants [Amendment to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January 2016).Disclosures’. The amendments are not likely to have an impact on the Bank's financial statements. - IFRS 7 ‘Financial Instruments. 4 BASIS OF MEASUREMENT These unconsolidated financial statements have been prepared under the historical cost convention. and (c) how an entity that is not an investment entity should apply the equity method of accounting for its investment in an associate or joint venture that is an investment entity. A bearer plant is a plant that: is used in the supply of agricultural produce. The new cycle of improvements contain amendments to the following standards: - IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'. The amendment is not likely to have an impact on the Bank's financial statements. is expected to bear produce for more than one period. The amendments are not likely to have an impact on the Bank's financial statements. and has a remote likelihood of being sold as agricultural produce. - IAS 19 ‘Employee Benefits’. Bearer plants are now in the scope of IAS 16 Property. IAS 19 is amended to clarify that high quality corporate bonds or government bonds used in determining the discount rate should be issued in the same currency in which the benefits are to be paid. IFRS 5 is amended to clarify that if an entity changes the method of disposal of an asset (or disposal group) i.e. then such changes in classification is considered as continuation of the original plan of disposal and if an entity determines that an asset (or disposal group) no longer meets the criteria to be classified as held for distribution. – Accounting for Acquisitions of Interests in Joint Operations – Amendments to IFRS 11 ‘Joint Arrangements’ (effective for annual periods beginning on or after 1 January 2016) clarify the accounting for the acquisition of an interest in a joint operation where the activities of the operation constitute a business. Annual Improvements 2012-2014 cycles (amendments are effective for annual periods beginning on or after 1 January 2016). a company can elect to measure bearer plants at cost. IAS 34 is amended to clarify that certain disclosures. the produce growing on bearer plants will continue to be measured at fair value less costs to sell under IAS 41 Agriculture. IFRS 7 is amended to clarify when servicing arrangements on continuing involvement in transferred financial assets in cases when they are derecognized in their entirety are in the scope of its disclosure requirements. Plant and Equipment for measurement and disclosure purposes.

Notes to the Unconsolidated Financial Statements
For the year ended December 31, 2015

the measurement of certain investments and commitments in respect of forward foreign exchange contracts and
other forward contracts that are stated at revalued amounts / fair values.
5

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
The preparation of unconsolidated financial statements in conformity with approved accounting standards requires
the use of certain critical accounting estimates that affect the reported amounts of assets, liabilities, income and
expenses. It also requires the management to exercise its judgment in the process of applying the Bank's
accounting policies. Estimates and judgments are evaluated and are based on historical experience, including
expectations of future events that are believed to be reasonable under the circumstances. These estimates and
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
in which the estimate is revised and in any future periods. The areas where various assumptions and estimates
are significant to the Bank's financial statements or where judgment was exercised in application of accounting
policies are as follows:

5.1

Classification of investments
Held-to-maturity securities
As described in note 6.3, held-to-maturity securities are investments where the management has positive intent
and ability to hold to maturity. The classification of these securities involves management judgment as to whether
the financial assets are held-to-maturity investments.
Held-for-trading securities
Investments classified as held-for-trading are those which the Bank has acquired with an intention to trade by
taking advantage of short term market / interest rate movements.
Available-for-sale securities
Investments which are not classified as held-for-trading or held-to-maturity are classified as available-for-sale.

5.2

Impairment
Valuation and impairment of available-for-sale investments
The Bank determines that an available-for-sale equity investment and mutual funds are impaired when there has
been a significant or prolonged decline in the fair value below its cost. The determination of what is significant
or prolonged requires judgment. In making this judgment, the Bank evaluates, among other factors, the normal
volatility in share price. In addition, impairment may be appropriate when there is evidence of deterioration in the
financial health of the investee, industry and sector performance, changes in technology and operational and
financing cash flows.
Provision for diminution in the value of Term Finance Certificates, Bonds and Sukuks is made as per the Prudential
Regulations issued by the SBP.
In case of impairment of available-for-sale securities, the loss is recognised in the profit and loss account.
Impairment of investments in associates and subsidiaries
The Bank considers that a significant or prolonged decline in the recoverable value of investments in associates
and subsidiaries below their cost may be evidence of impairment. Recoverable value is calculated as the higher
of fair value less costs to sell and value in use. An impairment loss is recognized when the recoverable value falls
below the carrying value and is charged to the profit and loss account. Subsequent reversal of impairment loss,
upto the cost of investments in associates and subsidiaries, are credited to the profit and loss account.
Impairment of non financial assets (excluding deferred tax)
Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate
that the carrying amount may not be recoverable. If any such indication exists, the Bank estimates the recoverable

Annual Report 2015

27

Notes to the Unconsolidated Financial Statements
For the year ended December 31, 2015

amount of the asset and the impairment loss, if any. The recoverable amount of an asset is the higher of its fair
value less costs to sell and its value in use. Value in use is the present value of future cash flows from the asset
discounted at a rate that reflects market interest rates adjusted for risks specific to the asset. If the recoverable
amount of an intangible or tangible asset is less than its carrying value, an impairment loss is recognised
immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss.
A reversal of an impairment loss on intangible assets is recognized as it arises provided the increased carrying
value does not exceed that which it would have been had no impairment loss been recognized.
5.3

Provision against non-performing advances
Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the
SBP, management also applies subjective criteria of classification and accordingly the classification of an advance
may be downgraded on the basis of evaluation of the credit worthiness of the borrower, its cash flows, operations
in its account and adequacy of security in order to ensure accurate measurement of the provision.

5.4

Retirement benefits
The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation
are disclosed in note 35.2 to these unconsolidated financial statements.

5.5

Operating fixed assets, depreciation and amortisation
In making estimates of depreciation / amortisation, the management uses method which reflects the pattern in
which economic benefits are expected to be consumed by the Bank. The method applied is reviewed at each
financial year end and if there is a change in expected pattern of consumption of the future economic benefits
embodied in the assets, the method would be changed to reflect the change in pattern.

5.6

Income taxes
In making the estimates for income taxes currently payable by the Bank, the management looks at the current
income tax laws and the decisions of appellate authorities on certain issues in the past. In making the provision
for deferred taxes, estimates of the Bank's future taxable profits are taken into account.

6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these unconsolidated financial statements have been
applied consistently and are the same as those applied in the preparation of the unconsolidated financial statements
of the Bank for the year ended December 31, 2014 and are enumerated as follows, except for the following
standards which became effective during the year:

IFRS 10 - 'Consolidated Financial Statements'

It replaces the current guidance on consolidation in IAS 27 -'Consolidated and Separate Financial Statements'.
It introduces a single model of assessing control whereby an investor controls an investee when the investor has
the power to control, exposure to variable returns and the ability to use its power to influence the returns of the
investee. The Securities and Exchange Commission of Pakistan (SECP) vide its notification SRO 633(1) / 2014
dated July 10, 2014 adopted IFRS 10 effective from the period starting from June 30, 2014. However, vide its
notification SRO 56(1) / 2016 dated January 28, 2016, it has been notified that the requirements of IFRS 10 and
section 237 of the Companies Ordinance 1984 will not be applicable with respect to the investment in mutual
funds established under trust structure.
In light of the above, no additional investee is considered to be in control of the Bank.

IFRS 13 - 'Fair value measurement'

It consolidates the guidance on how to measure fair value into one comprehensive standard. It introduces the
use of an exact price, as well as disclosure requirements, particularly the inclusion of non-financial instruments
into the fair value hierarchy. The application of IFRS 13 does not have any impact on the unconsolidated financial
statements of the Bank except for certain disclosures as mentioned in note 38.3.

28

Annual Report 2015

Notes to the Unconsolidated Financial Statements
For the year ended December 31, 2015

-

IFRS 11 - 'Joint Arrangements'

IFRS 11 'Joint Arrangements' replaces IAS 31 'Interests in Joint Ventures' it requires all joint ventures to be equity
accounted hereby removing the option in IAS 31 for proportionate consolidation. It also removes the IAS 31
concept to jointly controlled assets. The application of IFRS 11 does not have any impact on the financial statements
of the Bank.
6.1

Business combinations
Business combinations are accounted for using the purchase method. Under this method, identified assets
acquired, liabilities and contingent liabilities assumed are fair valued at the acquisition date, irrespective of the
extent of any non-controlling interest. The excess of cost of acquisition over the fair value of identifiable net assets
acquired is recorded as goodwill.

6.2

Revenue recognition
Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis.
Where debt securities are purchased at a premium or discount, such premium / discount is amortized through
the profit and loss account over the remaining period of maturity using the effective interest rate method so as
to produce a constant rate of return. Interest or mark-up recovered on non-performing advances is recognized
on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as
amended from time to time.
The financing method is used in accounting for income on finance leases and hire purchase transactions. Under
this method, the unearned income, i.e. the excess of aggregate lease rentals and the estimated residual value
over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the
lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease. Unrealized lease
income is suspended, where necessary, in accordance with the requirements of the Prudential Regulations issued
by the SBP.
Rental income from assets given on operating lease is recognized on time proportionate basis over the lease
period.
Gains / losses on termination of lease contracts, documentation charges and other lease income are recognized
as income when they are realized.
Fee, commission and brokerage income is recognized at the time of performance of the service.
Dividend income is recorded when the right to receive the dividend is established.

6.3

Investments
Investments of the Bank, other than investments in subsidiaries and associates are classified as held-to-maturity,
held-for-trading and available-for-sale.
Held-to-maturity
These are securities with fixed or determinable payments and fixed maturity for which the Bank has the positive
intent and ability to hold upto maturity.
Held-for-trading
These securities are either acquired for generating a profit from short-term fluctuations in market prices, interest
rate movements, dealer's margin or are securities included in the portfolio for which there is evidence of a recent
actual pattern of short-term profit taking.
Available-for-sale
These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities.

Annual Report 2015

29

Notes to the Unconsolidated Financial Statements
For the year ended December 31, 2015

Initial measurement
All “regular way” purchases and sales of investments are recognized on the trade date, i.e., the date that the
Bank commits to purchase or sell the asset. Regular way purchases or sales of investments are those that require
delivery of assets within the time frame generally established by regulation or convention in the market place.
Investments are initially recognized at fair value which, in the case of investments other than held-for-trading,
includes transaction costs associated with the investments. Transaction costs on investments classified as heldfor-trading are expensed as incurred.
Subsequent measurement
Held-to-maturity
These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized
to reflect irrecoverable amounts.
Held-for-trading
These are measured at subsequent reporting dates at fair value. Gains and losses on remeasurement are included
in the profit and loss account.
Available-for-sale
Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair
value (and any revaluation gain or loss is taken to other comprehensive income (OCI)). Any surplus / deficit arising
thereon is kept in a separate account shown in the balance sheet below equity and taken to the profit and loss
account when actually realized upon disposal or when the investment is considered to be impaired.
Unquoted equity securities are valued at the lower of cost and break-up value. A decline in the carrying value is
charged to the profit and loss account. A subsequent increase in the carrying value, up to the cost of investment,
is credited to the profit and loss account. The break-up value of these equity securities is calculated with reference
to the net assets of the investee company as per the latest available audited financial statements. Investments
in other unquoted securities are valued at cost less impairment losses.
Provision for diminution in the value of securities (except term finance certificates and sukuks) is made for
impairment, if any. Provision for diminution in the value of term finance certificates and sukuks is made as per
the criteria prescribed by the Prudential Regulations issued by the SBP.
Investment in subsidiaries and associates
Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment
loss on associates and subsidiaries is recognized in the profit and loss account as it arises provided the increased
carrying value does not exceed cost.
Gain or loss on sale of investments in subsidiaries and associates is included in the profit and loss account for
the year.
Subsidiaries are considered to be the entities where the Bank has a holding of 50% or more in the equity / net
assets thereof.
Associates are considered to be the entities where the Bank has a holding of less than 50% and also have
significant influence therein. In the Bank's case, these are the holdings in the mutual funds managed by its wholly
owned subsidiary.
6.4

Lendings to / borrowings from financial institutions (including repurchase and resale 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. Securities purchased under agreement to resale (reverse
repo) are not recognized in the financial statements as investments and the amount extended to the counter party
is included in lendings to financial institutions. In the case of the margin trading system, transactions are shown

30

Annual Report 2015

Assets held under finance lease Leasehold land is stated at cost. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. at the rates given in note 12. Advances are written off when there is no realistic prospect of recovery.6 Operating fixed assets and depreciation Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss. Securities purchase with a corresponding commitment to resell at a specified future date are not recognized in the financial statements. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases.Notes to the Unconsolidated Financial Statements For the year ended December 31. Freehold and leasehold land is stated at cost. depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged upto the month of disposal. if any.5 Advances Advances including margin trading system and net investment in finance lease are stated net of provisions. Gains and losses on disposal of property and equipment if any. 6. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value. Provisions Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time.2 to these unconsolidated financial statements. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Bank. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods. In respect of additions and deletions to assets during the year. are taken to the profit and loss account for the year. Annual Report 2015 31 . 6. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability. in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from financial institutions. unless these are sold to third parties. The general provision is for the inherent risk of losses which are known from experience to be present in any loan portfolio. 2015 under advances. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned. if any. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income. Assets held under finance lease are stated at cost less accumulated depreciation. Major repairs and improvements are capitalized and assets so replaced are retired. Normal repairs and maintenance are charged to the profit and loss account for the year as and when incurred.

6. Eligible employees are those employees who have joined the service of the Bank on or before March 31. Amortization is carried out on the straight line method at the rates given in note 13 to these unconsolidated financial statements. 6. Capital work in progress These assets are stated at cost.Notes to the Unconsolidated Financial Statements For the year ended December 31. if any.9 Staff retirement benefits Defined benefit plans The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years. The estimated useful lives are as follows: Core deposit relationships Core overdraft / working capital loan relationships 11 years 11 years Computer software is stated at cost less accumulated amortization and accumulated impairment loss. Amortisation is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. Defined contribution plan The Bank operates a defined contribution provident fund for all its permanent employees. 6. The Bank records deferred tax assets / liabilities using tax 32 Annual Report 2015 . 2015 Assets held under operating lease Operating lease assets are stated at cost less accumulated depreciation and impairment. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years. 2006. Actuarial gains and losses are recognised immediately in other comprehensive income with no subsequent recycling through profit and loss accounts. Actuarial valuation is carried out periodically using the "Projected Unit Credit Method". Past service costs are charged to the profit and loss account.8 Sub-ordinated Loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period at effective interest rate. Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the statement of financial position date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes.10 Taxation Income tax expense comprises current and deferred tax. 6.7 Intangible assets Intangible assets include the value of core deposit relationships. Equal monthly contributions are made to the fund by both the Bank and the employees at the rate of 10% of basic salary. These are transferred to specific assets as and when assets are available for use. Income tax expense is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity. if any. and core overdraft / working capital loan relationships and are stated at cost less accumulated amortisation and accumulated impairment losses. Provision is made in accordance with actuarial recommendations. if any. Repairs and maintenance are charged to the profit and loss account as and when incurred.

Provisions are reviewed quarterly and are adjusted to reflect the current best estimate. Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial statements at committed amounts. in the period in which such appropriations are approved. The Bank recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". 6. Provision against non-funded losses is recognized when intimated and reasonable certainty exists that the Bank will be required to settle the obligation. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the statement of financial position date. Forward foreign exchange contracts are valued at forward rates applicable to their respective maturities. 6. The provision is charged to the profit and loss account net of expected recovery and the obligation is classified under other liabilities. Annual Report 2015 33 .Notes to the Unconsolidated Financial Statements For the year ended December 31. other than statutory appropriations. are translated at the rates of exchange guaranteed by the Bank and the Government. 6. that are expected to be applicable at the time of their reversal.12 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Bank intends either to settle on a net basis. 6.13 Dividend distribution Dividend is recognized as a liability in the period in which it is declared. The related deferred tax asset / liability is adjusted against the related deficit / surplus. The Bank recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". to reserves including those in respect of bonus shares made after the statement of financial position date.15 Foreign currencies Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing at the transaction date.14 Distributions of bonus shares and other appropriations to reserves The Bank recognizes all appropriations. Assets against which the constituents have exercised their option to transfer exchange risk to the Bank and liabilities for which the Bank has exercised its option to transfer exchange risk to the Government. Appropriation to statutory reserves are recognized in the financial statements of the period to which these appropriations relate to. or to realize the assets and to settle the liabilities simultaneously. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the statement of financial position date. 2015 rates.11 Provisions Provisions are recognized when the Bank has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. 6. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements. enacted or substantially enacted at the statement of financial position date. respectively.

syndicated financing along with advisory. Financial liabilities are derecognized when they are extinguished i.Notes to the Unconsolidated Financial Statements For the year ended December 31.1 Business segments Corporate and Investment Banking It represents all funded and non funded credit facilities of working capital financing including seasonal finance.e. 34 Annual Report 2015 . Financial assets are derecognized when the Bank loses control of the contractual rights that comprise the financial assets. 6.17 Financial instruments All financial assets and liabilities are recognized at the time when the Bank becomes a party to the contractual provisions of the instrument. Project financing. 6.18 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. bills payable and other payables. trading. as a matter of prudence. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. when the obligation specified in the contract is discharged.19. 6. The Bank’s primary format of reporting is based on business segments. is carried forward as unrealized gain in view of the uncertainty associated with its realization. investments. underwriting. Non-monetary assets and liabilities in foreign currencies are expressed in Rupee terms at the exchange rates prevailing at the date of initial recognition of the non-monetary assets and liabilities. Commercial It represents all funded and non funded credit facilities. guarantees and bills of exchange relating to corporate customers. lendings to financial institutions. 1971. Modernization and Replacement (BMR). liabilities. All derivative financial instruments are carried as assets when their fair value is positive and liabilities when the fair value is negative. wholesale and service sectors. commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15. cash and cash equivalents include cash and balances with treasury banks and balances with other banks. Financial liabilities include borrowings.19 Segment reporting A segment is a distinguishable component of the Bank that is engaged in providing products or services (business segment). as well as for long term expansion. or in providing products or services within a particular economic environment (geographical segment). Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which. Financial assets carried on the statement of financial position include cash and bank balances. deposits.16 Cash and cash equivalents For the purposes of the cash flow statement. trade finance. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. cash finance. and Initial Public Offerings (IPO) related activities. 2015 Assets. deposit products & transaction services offered by the Bank to small & medium enterprises and commercial businesses operating in the manufacturing. advances and certain receivables. Balancing. 6. cancelled or expired. Fair values are obtained from quoted market prices in active markets. transactional banking. 6. which is subject to risks and rewards that are different from those of other segments. running finance.

6. When an operation is classified as a discontinued operation. or is classified as held for sale. cash flow. interest rate fluctuations and foreign exchange risk. These are recorded at the lower of the carrying value of the related advances and the current fair value of such assets.24 Assets held for sale and discontinued operations During the year. 6. In accordance with the requirements of International Financial Reporting Standard (IFRS) . non current assets are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Gains are not recognized in excess of any cumulative impairment loss. 6. EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year.22 Earnings per share The Bank presents earnings per share (EPS) data for its ordinary shares. the Bank decided to sell its 100% shareholding in PICIC Asset Management Company Limited (PICIC AMC.32%) have been classified as "Assets held for sale" in the statement of financial position (refer note 15). the assets are measured at the lower of their carrying value or fair value less cost to sell. Conditional on this sale. Thereafter.19. Classification as a discontinued operation occurs on disposal or when the operation meets the criteria to be classified as held for sale. a wholly owned subsidiary of NIB Bank Limited).23 Fiduciary Assets Assets held in a fiduciary capacity are not treated as assets of the Bank in the statement of financial position. Treasury Treasury manages the asset and liability mix of the Bank. and which represents a separate major line of business or is part of a single co-ordinated plan to dispose of a separate major line of business. 6. Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. A discontinued operation is a component of the entity that either has been disposed of. the Bank has also decided to sell 50. These banking services include lending. Annual Report 2015 35 .Notes to the Unconsolidated Financial Statements For the year ended December 31.21 Deposits Deposits are initially recorded at the amount of proceeds received. Accordingly due to the above. deposits and distribution of insurance products along with other financial products and services tailored for such customers. 2015 Retail It represents banking services offered to individuals and small businesses through a retail branch banking and alternate distribution network.5 "Non-Current Assets Held for Sale and Discontinued Operations". if earlier. Income and earnings per share from the discontinued operations have been separately presented in the profit and loss account (refer note 15 and note 32). Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognized in profit or loss. Immediately before classification as held for sale the assets are remeasured in accordance with the Bank's other accounting policies. Cash flows from the discontinued operations are presented in note 15. 6. 6. and provides customers with products that meet their demands for management of liquidity. investments in PICIC AMC (100%) and PIF (50.20 Assets acquired in satisfaction of claims The Bank acquires assets in settlement of certain advances.32% of its holding in PICIC Investment Fund (PIF).2 Geographical segments The Bank operates in Pakistan only. the comparative profit and loss account is restated as if the operation had been discontinued from the start of the comparative year.

646 Particulars of lendings In local currency In foreign currencies 9. 7.646 – 1.1 36 9.723 1. Annual Report 2015 .016 376.690 296.2 8.699.645.1 Foreign currencies 2.052.543 8.812 Foreign currency deposit accounts 7.646 1.385 With State Bank of Pakistan in Local currency current accounts 7.116 36. 2.070.4 1.599.004 million (2014: Rs.044 – 7.646 1.299.467 5.428 300.675 With National Bank of Pakistan in local currency current accounts 7.259.094 1.276.086 593.3 This represents a US Dollar settlement account maintained with the SBP and special cash reserve at Nil return (2014: Nil) required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme.653 10.Notes to the Unconsolidated Financial Statements For the year ended December 31.020 1. 9.1 This balance has been written off during the year.1 This includes National Prize Bonds of Rs.2 The current account is maintained with the SBP under the cash reserve requirement of Section 22 of the Banking Companies Ordinance.571 1.274.021 310.699.699.358.805.777 405. 2.1 Call money lending carries mark-up at the rate of 6. 2015 Note 2015 2014 (Rupees in ‘000) 7.671 24.404 4. CASH AND BALANCES WITH TREASURY BANKS In hand Local currency 7.3 & 9.3 398.086 587.2 9.4 – (6. 1962.699. 7.599.431) 1.044 – 7. Note 2015 2014 (Rupees in ‘000) 8. LENDINGS TO FINANCIAL INSTITUTIONS Call money lending Repurchase agreement lendings (Reverse Repo) 9.4 This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the foreign currency accounts scheme at Nil return (2014: Nil return).599.573. 7.810 million).337 449.000 1.5% (2014: Nil) per annum and having remaining maturity of four (2014: Nil) days.645. BALANCES WITH OTHER BANKS In Pakistan in current accounts 34.768 240.859 Outside Pakistan – in current accounts – in deposit account Provision against doubtful balances 8.638 164.063.044 7.044 7.2 Foreign currency current account 7.

072 - 10.044 4.721.491 64.119.8 & 10.083.726 10.288 Held-to-maturity securities Pakistan Investment Bonds Term Finance Certificates 10.479.072 6.917 32.860.226 14.814 73. 2015 amounted to Rs.365.net Net investments 23 (183.506 7.722 Ordinary shares of unlisted companies Term Finance Certificates - 2.961.147 29.044 500.2 9.4 Securities held as collateral against lendings to financial institutions Held by Bank 2015 Further given as collateral / sold 2014 Further given as collateral / sold Held by Bank Total Total (Rupees in ‘000) Market Treasury Bills Pakistan Investment Bonds 799.735.417 - 6.476.345 9.333.068 million).3 Sukuk Bonds 10.334 59.963 1.218 - 2.1 (a) Investments by type: 2015 Held by Bank 2014 Given as Collateral Note Total Held by Bank (Rupees in ‘000) Given as Collateral Total Available-for-sale securities Market Treasury Bills 10.net of provisions Surplus on revaluation of available-for-sale securities .087 102.031.860 57.214.699.268 - 1.722 - 31.066 - 2.427.730 - 2.497 3.371 - 58.944.15 724 - 724 2.031 1.9 587.12 & 10.730 2.668.733 million (2014: Rs.443 4.921 433.044 500.673 271. 1.961.954 - 9.066 95.275.779.497 – 3.959 - 6.668.299.703.178 - 55.178 Ordinary shares / Certificates in listed companies / modarabas 10.693.860 65.908 637.204.515 877.50% to 9.959 6.180 - 21.365.693.554.371 58.15 2.678.622.378 (192.317.070 13.044 – 1.554.000 – – 799.Notes to the Unconsolidated Financial Statements For the year ended December 31.625 64.703. 7.579 - 32.3 These represent repurchase agreement lending to financial institutions carrying mark-up at the rate of 6.2 10.127.912.974.646 9.925 25.859.781.417 Associates 10.75%) per annum and having remaining maturity of four days (2014: forty three days).080. INVESTMENTS 10.859.550.913 6.7 57.5% (2014: ranging from 9. 10.954 10.567.218 3.946.10 & 10.4 1.345 - 6.243 6.13 Investments .678.824 95.6 21.503.161. 2015 9.805.178 55.371 45.607 Subsidiaries 10.730 10.449 25.808) 64.113 19.470. 9.941 65.149 7.4.8 & 10.127.333.940.699.699.646 – 1.726 21.538 64.2 10.9 6.180 31.5 55.429 64.245 121.742 32.826 Defense Savings Certificates 10.679 25.148.149 – 7.178 - 55.913 - 6.579 95.859.107 Annual Report 2015 37 .332 384.127 10.808) (192.579 86.117 25.528.265) 30.346 Investments at cost Provision for diminution in value of investments 10.479.743.994 30.334.433 Cumulative Preference shares 10.607 49.000 4.607 - 3.11 & 10.316 336.759.730 - 2.299.007 (183.921 - 1.265) 30.732 Pakistan Investment Bonds 10.773 34.762.1 The market value of securities held as collateral against lendings to financial institutions as at December 31.433 - 433.334.554.699.

1 10.2 2. 10.6 10.000 433.12 & 10.15 724 2.464. 2.11 & 10.218 3.083.479.4.117 58.974.2 10.15 %) per annum.805.332 1.24 years.5% ) per annum on semi-annual basis with remaining maturities of 2.588 Fully Paid-up Ordinary Shares & Modaraba Certificates Listed Unlisted Term Finance Certificates Listed Unlisted Associates 10.2 Market Treasury Bills and Pakistan Investment Bonds are eligible for rediscounting.10 & 15.860. Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities.607 Subsidiaries 10.4.219.730 14. 38 Annual Report 2015 .127.2 5.808) (192.1 These carry mark up at the rate of 3 months KIBOR + 300bps and have an original maturity of ten years. the applicable rate of return was 9.634.622. At the year end.8 10.1 (b) Investments by segments: 2015 2014 (Rupees in ‘000) Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates 10.127.4 Particulars of Sukuk Bonds Number of certificates Name of investee company Note 2015 2014 Liberty Power Tech Limited Sui Southern Gas Company Limited 10.178 10.333.15% (2014: 12.3 These DSCs of Rs.275.921 433.4 1.50% (2014: 10% to 12.47% to 10.294 688. 2015 Note 10.425 470.5 55.107 Total investments at cost Provision for diminution in value of investments 10.175 235.921 750.000 5. Mark up and principal installments are made on quarterly basis.807 180.67 years to 9.7 21.433 Cumulative Preference Shares 10.00%) with remaining maturities of 7 days to 315 days and Pakistan Investment Bonds carry mark-up ranging from 9. 10.433 – 1.449 59.944.730 million are pledged as a security and carry interest rate at 12.243 17.2 10.30% to 6.3 73.net of provisions Surplus on revaluation of available-for-sale securities 23 Net investments 10.113 121.464. Market Treasury Bills embody effective yields ranging from 6.13 Investments .4.433 10.925 58.180 57.171 2.732 36. Market treasury bills having a face value of Rs 150 million have been pledged with National Clearing Company of Pakistan Limited as a guarantee against margin trading system.378 (183.Notes to the Unconsolidated Financial Statements For the year ended December 31.722 65.25% to 12.807 – Cost of investment 2015 2014 (Rupees in ‘000) 377.860 31.730 Sukuk Bonds 10.178 55.96% (2014: 9.994 95.743.265) 95.9 412.6% per annum.726 10.066 95.080.402 2.921 433.699.

6 Crescent Capital Management (Private) Limited Chief Executive: Mr.33% *79.180 31.680 – – 100.500.000 3.Notes to the Unconsolidated Financial Statements For the year ended December 31.5.178 2.83% 3. Mahmood Ahmed 10.178 30.7.250.5% on cumulative basis payable when and if declared by the Board of Directors.6 Number of Shares held 2015 – Cost of Investment 2014 2015 2014 (Rupees in ‘000) 5.000. Muhammad Hanif Jakhura 10.760 2.4.000 5.2 2.034.2 These preference shares are non voting and convertible into ordinary shares after ten years from the date of issuance.726 * Shares of Face Value of Rs.7.1 10.5.017. Mark up and principal installments are made on quarterly basis.7.000 8.000 3. Muhammad Hanif Kasbati 10.5.680 each Annual Report 2015 39 .7 21.000 – – 10.000 3.7.4 Islamabad Stock Exchange Limited Chief Executive: Mian Ayyaz Afzal 10.5. the applicable rate of return was 7. 100 each ** Shares of Face Value of Euro 2. Shahid Ghaffar 10.034.7.044 – 5.946 – – 0.860 1. At the year end.21% per annum.542 21.138 21.178 10.1 These preference shares carry fixed dividend of 9.6 Sunbiz (Private) Limited Chief Executive: Mr.00% 5.7.5 Particulars of investment in Cumulative Preference Shares Investee Note Number of Shares held 2015 2014 Pak Elektron Limited (PEL) Galaxy Textile Mills Limited 10.000 25.000 50. 10.2 These carry mark up at the rate of 3 months KIBOR + 70bps and have an original maturity of five years.000 50.603 – – 568.2 National Investment Trust Limited Chief Executive: Mr.01% **9 **9 2.800 Total nominal value 2015 2014 (Rupees in ‘000) 25.3 SWIFT Chief Executive: Mr.017.000 – 1.7. These preference shares bear a fixed return at the rate of 5% per annum that will be non cumulative for the first five years and thereafter will be cumulative from year to year.000 30.180 IGI Insurance Limited Particulars of Unlisted Ordinary Shares Central Depository Company of Pakistan Limited Chief Executive: Mr. 10.500 – 10.000 65. 2015 10.200 *79. Syed Muhammad Zaeem 10.000 4.00% 3.000 – 57.200 100 100 0.1 Pakistan Textile City (Private) Limited Chief Executive: Mr. 10. Muqadder Ali Shah 10.603 3.000 5.7.5 Pakistan Export Finance Guarantee Agency Limited Chief Executive: Mr.138 – 847 – Tariq Glass Industries Limited – 743. Gottfried Leibbrandt 10.500.000 5.722 Total Listed Shares Percentage of holding Note 10.250.000.800 55.178 55.6 Particulars of investment in Listed Ordinary Shares Number of Shares held 2015 2014 Cost of Investment 2015 2014 (Rupees in ‘000) 605.180 Available-for-sale Agritech Limited 605.

2015 amounts to Rs.876 million.7. These certificates have been recognised at nil value in the Bank's books as per the requirement of Prudential Regulations.8. 2018 6 months KIBOR+3.000 200. 2015 amounts to Rs.8.135 million) classified as Held-to-Maturity.1 – – Oct 13.000 10.827 million). 10.908 49.679 million (June 30.8. 10.588 235.8.294 470.1 In the year 2012. the Bank received 11.04% 74. 2015 3 months KIBOR+5. having total value of Rs. 10. 872. 10.9.950 – 119. (June 30. 16.2 Oct 27. 117. 2014 amounts to Rs.000 – – – – – 32.25% Semi-Annually – 30. 2015 amounts to Rs.890 Quarterly 49. based on the net assets stated in the audited financial statements of investee company as at December 31.25% Semi-Annually 10. 10. 33. 2011 Oct 27.1 Value of investment. (December 31.000 5.8 Particulars of investment in Listed Term Finance Certificates Name of Investee Company Note Issue Date Maturity Date Interest Rate Interest and Number of principal payment certificates held 2015 2014 Amortized cost 2015 2014 (Rupees in ‘000) Askari Bank Limited Azgard Nine Limited – – – – 10.819 million (2014: 1. 2017 6 months KIBOR+2.135 million (2014: 8. 2014: Rs. 22.440 16.8. based on the net assets stated in the audited financial statements of investee company as at June 30.000 41. 2015 10. Value of investment. 2011 Oct 13. 2005 Sep 20. 5. based on the net assets stated in the audited financial statements of investee company as at June 30. 10.8.8.000 Telecard Limited 10.5% Semi-Annually 5.172 million).888 74.4 Value of investment.931 412.425 10.3 May 27. 59.040 million.000 each 40 Annual Report 2015 .269 41.000 235.000 Bank Alfalah Limited – Fixed Dec 2.940 24.3 The investment has been fully provided in these financial statements and includes an amount of Rs.590 24.000 204. based on the net assets stated in the audited financial statements of investee company as at June 30. 2013: Rs.3 Value of investment.000 10. 10.508 204.32 million in respect of overdue mark-up of Azgard Nine Limited.1 The investment has been fully provided in these financial statements and includes an amount of Rs.7. 2009 Dec 2.294 470. 2005 May 18. Subsequent to the year end.864 – – 200.233 million).7.000 each.6 These investments have been written off against provision during the year. 2009 Dec 2.5 The Bank has recorded Investment in the Company at Nil value due to conversion of the Islamabad Stock Exchange from limited by guarantee to public company limited by shares.269 16. 2017 6 months KIBOR+1.9 Particulars of investment in Unlisted Term Finance Certificates Name of Investee Company Note Issue Date Maturity Date Interest Rate Interest and Number of principal payment Certificates held 2015 2014 Amortized Cost 2015 2014 (Rupees in ‘000) Azgard Nine Limited Pakistan Mobile Communications Limited 10. 964.550 118. 2017 15% Semi-Annually Bank Alfalah Limited – Floating Dec 2.320 million.9.000 10.1 Sep 20. whereby overdue interest on classified advance accounts can only be recognised once this is received in cash.7.692 Engro Fertilizer Limited – 154. 10. (June 30.130.2 Value of investment. 5. All Term Finance Certificates are of original face value of Rs.874 million).175 688.864 Term Finance Certificates of Rs. 2014: Rs.1. (June 30. 2014: Rs.888 116. 3.2 These term finance certificates are pledged with National Clearing Company of Pakistan Limited. the Islamabad Stock Exchange was merged with Karachi and Lahore Stock Exchanges as Pakistan Stock Exchange.763 million).938 million) classified as Held-to-Maturity.7. 3. 10. 2015 amounts to Rs.Notes to the Unconsolidated Financial Statements For the year ended December 31.906 million. 2016 – – 3 months KIBOR+2% Quarterly 11. 33. based on the net assets stated in the audited financial statements of investee company as at June 30.864 11.355 Summit Bank Limited 10. 2014: Rs.588 10.7.

10 each.710 514. 2015 Number of shares / units / certificates Note Cost of investment 2015 2014 2015 2014 (Rupees in ‘000) 31.699 1.699.607 10.850 2.218 3.561) Write off / reversal due to sale / transfer to other assets (12.12 Particulars of provision for diminution in value of investments Opening balance 192.479.161) Closing balance 183.478.935 2.333. holdings in ordinary shares.825.782 5.Unlisted shares (FMSL) Annual Report 2015 41 .411) 3.782 5. preference shares and units of mutual funds are of Rs.1 – 88.937 35.265 16.117.482.221.850 (18.021 43.117.265 466.340) 6.342 724 724 724 2.850 29.Term Finance Certificates Subsidiary . 100 each 2015 2014 (Rupees in ‘000) 10.260.Notes to the Unconsolidated Financial Statements For the year ended December 31. * Units of Face Value of Rs.641 33.066 Unless otherwise stated.Listed shares / units .125) (263.650 96.008 (2.042.Unlisted shares .808 192.263 626.Open End * PICIC Investment Fund .935 336.159 183.2 336.084 191.993 – 88.Term Finance Certificates 10.820 20.13 Particulars of provision in respect of type and segment Available-for-sale securities .999.310 1.650 48.Closed End 15.808 192.987 6.821 43.445 135.623 132.Open End PICIC Income Fund .858 10. 100 each ** Shares of Face Value of Rs.482.703.263 1.825.10 Particulars of investment in Associates PICIC Energy Fund .Closed End PICIC Growth Fund .11 Particulars of investment in Subsidiaries PICIC Asset Management Company Limited Financial and Management Services (Private) Limited** 15.710 514.541 724 724 183.668 (11.265 Charge for the year Reversal for the year .221.858 31.

658 111.127.438.813 AA** AAA+ AAA (SO) ** * At cost / breakup value since market value is not available. However. ** Rating not available 10.985 10.758.14 Quality of Available-for-Sale Securities .at Market Value Federal Government Securities Defense Savings Certificates Market Treasury Bills Pakistan Investment Bonds 2.178 25.764 2.294 51.730 74.417 ** ** AM2** ** – ** AA– AAA ** 146.544. these need to be tested for impairment.433 ** A1 / A 30.093.269 Unrated 31.197 – 86.973 Unrated Unrated Unrated A+ A+ 433.Notes to the Unconsolidated Financial Statements For the year ended December 31.375.284 – 235.588 47.816 – 248. no such impairment has been recorded.272 Unrated 2. 42 Annual Report 2015 .15 As per BSD circular No.807 470. as per IAS 36. if there is indication that such impairment may exist.658 – – * 5.000 Ordinary shares of Listed Companies Agritech Limited IGI Insurance Limited Tariq Glass Industries Limited Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited Islamabad Stock Exchange Limited National Investment Trust Limited Pakistan Textile City (Private) Limited SWIFT Term Finance Certificates Askari Bank Limited Azgard Nine Limited Bank Alfalah Limited Engro Fertilizer Limited Pakistan Mobile Communications Limited Summit Bank Limited Telecard Limited 5.690 229 34.906 2.231 * * * – – 249.078.178 25.921 Sukuk Bonds Cumulative Preference shares Galaxy Textile Mills Limited Pak Elektron Limited (PEL) * 30.730 Unrated 14. 2007.172 – 47.000 – 100 16.000 – 100 22.989 ** AA ** ** ** AM2 ** ** 5. 6 of 2007 dated September 6. investments in subsidiaries and associates are required to be reported separately and should be carried at cost. 2015 2015 2014 (Rupees in ‘000) Rating (Rupees in ‘000) Rating 10.000 ** A2 / A- ** – – 4.788 1. Since there is no indication of impairment.

097.2 Short term (for upto one year) Long term (for over one year) 105.514 6.024 111.980.904 Annual Report 2015 43 .656.379 107.15.008.2. 2015 2014 (Rupees in ‘000) 11. . 72.264 161.588.081.2 Particulars of advances 11.428.880 43.3 1.813) (94.316 7.561.131) 110.746 1.036 Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan Advances .749.861 117.337 million) representing unrealized exchange gain.367 – 441.2.372) (23.484 135.635.206 397.030) (23.574 135.961) – (347.4 (24.749.Notes to the Unconsolidated Financial Statements For the year ended December 31.450.005 2.601 – 2.167 11.989 5.3 Net investment in finance lease 2015 Not later than one year Later than one and less than five years Over five years Total (Rupees in ‘000) Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1.453 (331.1 This includes a sum of Rs.562.985.234 – 1.540 29. 2015 2014 (Rupees in ‘000) ADVANCES Loans.in Pakistan 11.635.Gross Provision against non-performing advances Specific General Advances .028.852 177.858 Net investment in finance lease .1 128.net of provision 11.167 11.644. etc.1 In local currency In foreign currencies 127.653 117.204.708 135.024 96. as stated in note 6.805.736 3.919.885.668.904 1.247 1.588) (15.640 – 1.318) 11. 72.468.in Pakistan 11.028.167 11.521.972 134.658) (154.994 93.028.549) 1.306 21.024 117.644.644.401.337 million (2014: Rs. 2015 Note 11.359. running finance.466. in accordance with the policy of the Bank.664. cash credits.5 (24.599.174. which has not been recognised as income and deferred in these unconsolidated financial statements.

224 24.470.303 22.104. 28.162 2.658 – 24.189) 1. 1.332) (28.Notes to the Unconsolidated Financial Statements For the year ended December 31.397 3.813 – – – – – 3. 11.548.1 Leases includes non-performing loans of Rs.746 11.204.224 million (2014: Rs.487 million (2014: Rs.920 – 23.184 23.850) (7) (381.303 29. 1.353 – 2.173.658 – 24.885.017.718.814 827.173. 44 Annual Report 2015 40.1.204.920 – 23.417.920 28.237 831 1.262 827.784 – 25.104.184 million) which have been placed under non-performing status as detailed below: 2015 Classified Advances Domestic Overseas Provision Required Total Domestic Overseas Provision Held Total Domestic Overseas Total – 2.784 23.058.262 1.095.976.530.528.658 Loss 2014 Classified Advances Domestic Overseas Total Provision Required Domestic Overseas Provision Held Total Domestic Overseas Total (Rupees in ‘000) Category of classification OAEM* Substandard Doubtful Loss 40.920 23.949 25.814 1.417.262 406.017.885.017.658 24.590 3.353 Substandard 1.058.024 29.126 1.262 406.956 – 228.956 228.935 (352.429 – 442.956 Doubtful 1.303 23.895 138 1.1.224 – 28.678 181.650 228.3.590 2.204.417.590 1.087 838 2.068.658 22.204.530.885.234 48.530.190 million) has been held.809 419.058.678.530.397 2.623.4 Advances include Rs.628 442.303 23.192 700 468.805.760.024 22.184 – – – – – * OAEM pertains to small enterprises.813 23.776 161.173.417.058. 29.650 – 1.373 million) against which provision of Rs.813 – – – – – 3.429 – 442.760.270.010 210. 2015 2014 Not later than one year Later than one and less than five years Over five years Total (Rupees in ‘000) Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1.947 million (2014: Rs.658 22.949 406.270.956 – 228.429 442.162 – 37.556.429 25.590 1.470.658 25.885.813 .678.353 2.353 (Rupees in ‘000) Category of classification OAEM* 37.628 – 1.658 406.186.

175 60. 11.134.028) 1.2 As per the revised Prudential Regulations issued for the Corporate / Commercial Banking vide BPRD Circular No.813 94. total FSV benefit erosion resulted in decrease in profit before tax of Rs.997 (2.359.204. 2011 issued by the State Bank of Pakistan.772 – 9. Had the benefit under the said circular not been taken by the Bank.318 23.204.028) 1.495.944 Charge for the year Reversals 2.805 470.179 3.536. 2015 11.488.885.885.772 Amounts written off .980.980.139 22.5 Particulars of provision against non-performing advances 2015 Note Specific General 2014 Total Specific General Total (Rupees in ‘000) Opening balance 23.131 11.086) – (124.318 23. 728.333.557. 2014: Rs.1 In accordance with BSD Circular No.134.805 69.813 94.768) 199.943 (2.780 390.734.currency wise 2015 Specific General 2014 Total Specific General Total (Rupees in ‘000) In local currency In foreign currencies 23.6 Amounts transferred from / (to) other assets / other liabilities Closing balance 179.033 24.433 470. 2015.980.5.359.4. the Bank has availed the benefit of Forced Sale Value (FSV) against the non-performing advances.383.225 23.179 – 25.768) 139.239 million (December 31.196. The FSV benefit recognised will not be available for the distribution of cash and stock dividend to shareholders.372 – 23. 11.net (includes recovery of earlier written-off retail loans) 11. 1. the cumulative FSV benefit recognized in respect of customers under Corporate / Commercial Banking is Rs.529 (2.225 154.030 23.4.1 Particulars of provision against non-performing advances .098 390.054 2. 2014: Rs.281 million).511.042 million.273. 06 of 2014 dated June 26.086) 9. 1 dated October 21.030 23. During the year ended December 31.501 179.229 3.196.322 25.318 – 23.350 (2.Notes to the Unconsolidated Financial Statements For the year ended December 31.318 23.033 94.372 24. 882.888.732.658 – – 154. 2.670 (124. 2014.658 154.584 million (December 31.885. the specific provision against non-performing advances would have been higher by Rs.054 – 60.813 94.131 22. 934.590.372 – 24.428 million) and is not available for distribution of cash or stock dividend / bonus to employees.131 Annual Report 2015 45 .670 – 24.707.501.

510 (4.750 37.414 55.855 2. 39.309 1.000 and above Write offs of below Rs.996.791.696 4.086. However.222 18.774 11.542 669.6 Particulars of (write backs) / write offs: 11. etc.8 Particulars of loans and advances to directors.855 Capital work in progress Civil works Electrical.7 151.6.207 27.422) 126. office and computer equipment Advances to suppliers and contractors Advance for computer software 46 24.086 2. the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31.148) OPERATING FIXED ASSETS Capital work in progress Property and equipment 12.572 204.683.542 Debts due by subsidiary companies.707) 1. executives or officers of the Bank or any of them either severally or jointly with any other persons: 2015 2014 (Rupees in ‘000) Balance at the beginning of the year Additions / granted during the year Repayments / transferred during the year 1. managed modarabas and other related parties: Note 2015 2014 (Rupees in ‘000) Balance at the beginning of the year Loan granted during the year Repayments during the year Balance at the end of the year 12.762 (690.446 2.487.Notes to the Unconsolidated Financial Statements For the year ended December 31.301) Balance at the end of the year 1.696 12.474 (865.398 48.543.530 20.874 204.301) Annual Report 2015 .6.7 Details of loan write offs of Rs.248 2. 500.179.081 913. 11.124 84.683.876 5.1 24.7 (328.460. Debts due by directors. 500.484 90.2 90.995.130 4.877) (371. 500.507 11.968 (5.1 Against provisions (includes recovery of earlier written-off retail loans) (179.000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance. 2015 Note 2015 2014 (Rupees in ‘000) 11.178.421 (177. 2015 is given in Annexure 1.670) 124.874 2.507 Directly charged to profit and loss account 11. 1962.905 24. this write off does not affect the Bank's right to recover these debts from any of its customers.2 Write offs of Rs. controlled firms.528. associated companies.675 3.267) (177.422) 126.1 12.455 497.000 (includes recovery of earlier written-off retail loans) 11.

All the legal dues in respect of the Plot including non-utilization fees have been paid.2.440 34.208 15.2.143 136. also in 2000.260 (5. The Bank filed a Civil Suit against KDA before the High Court of Sindh in respect of the said unilateral cancellation of the allotment. 2015 DEPRECIATION / IMPAIRMENT 2015 12. however there is no issue over the title of the subject property. in the suit against KPT.420 576. Both the Constitutional Petitions filed by the Bank have been dismissed by the Sindh High Court on 28 January 2016 against the Bank.3 5. both the suits were decided in favor of the Bank. In 2000.3 Note Property and Equipment Particulars 12. Karachi.370 266. 361 million in Block-6. (62.(124.739 – – – As at December 31. Clifton.532 – – Net Book value as at December 31.680 100. Appeal filed by KDA was disposed off in favour of the Bank vide order dated March 06. This includes a plot of land costing Rs.141.626 – 15. 2015 Carrying amount of temporarily idle property is Rs.949 million (2014: Rs.995. i. office and computer equipment 558.836 Furniture and fixtures Electrical. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh.247) 7.912 (1.143 136.935 1. Subsequently.390 15. the Bank is actively defending the cases.738 224. 790.447 million). Also as per legal opinion provided by the dealing counsel.668 570.171) – (230) (692) – 27.634 For the year / (on deletion) Accumulated Adjustments / as at December write offs 31. At present.042 980.064.204.432 1. the appeal filed by the KPT is likely to be decided by the Honorable Court in favour of the Bank. Both the decisions of the High Court of Sindh were challenged in two separate High Court Appeals by KDA and KPT.402) 36. However. 1.997) 547.273) 18.774 53. the High Court of Sindh held that since allotment in favor of the Bank was valid therefore. In the suit filed against KDA.2 4.775. These two cases are being handled by a senior lawyer.941 – 2.686 156.735 – – Rate of Depreciation % per annum 12.367 555.700 60. 2015 47 .697 1.567 144.034) 75.456 Adjustments / write offs COST Additions / (Deletions) Freehold land As at January 01.064. the appeal filed by KPT against the Bank is still pending before the High Court of Sindh. 2015 Leasehold land 12. 2015 Included in cost of property and equipment are fully depreciated items still in use having cost of Rs.152.e. KDA Scheme-5.992 1. The Bank has had a meeting with its external counsel in respect of filing an appeal before the Supreme Court of Pakistan.290.46 square yards. the High Court of Sindh held that the action of cancellation of the allotment by KDA was improper and void.577 26.891 (153) (230) (877) 317. Advocate on behalf of the Bank.372.616 (1. Karachi.131.626 Buildings on freehold land Buildings on leasehold land – – – 317. KPT filed a civil suit seeking a declaration from the High Court of Sindh to the effect that the ownership of the plot had been validly reverted to KPT.256 291. KPT had no standing to claim that the ownership of the land had been reverted back to KPT. Memon. KDA cancelled the allotment unilaterally based on certain building and construction restrictions.062. possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by Karachi Development Authority (KDA).103 million situated in Railway Quarters.996 1.637. Furthermore.697 2.726 (61. (126.518) 214.412 (153) (118.100 1. 2015 12. Karachi. in November 2008. Mushtaq A. 1.003 (26. whereas.120. I.697 1.822 – 10% 20% 10% to 33% 10% 5% 5% – Annual Report 2015 This also includes a plot of land having book value of Rs. Meanwhile.366 256. The High Court of Sindh initially issued restraining orders against KDA and KPT in the respective suits in respect of cancellation of the allotment of the Plot.669) 558.2. 930 million.634 317.1 Leasehold Improvements Vehicles 1.048. 2014 passed by the Honourable High Court of Sindh. where a tenant is claiming for the possession as tenant of an insignificant area of only 18 square feet of the plot measuring 3.423 million (2014: Rs. Karachi (the “Plot”).857 million).793 211.933.152) (53.074 76.362 – – 257.596 (5.589 170.707) 304.044. 755. Presently one appeal filed by KPT (276/2004) and a suit filed by KPT (1075/2008 KPT Vs CDGK and NIB Bank) are pending on the subject plot before Sindh High Court. Market value of the property based on the revaluation carried at the year end amounts to Rs.I. a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the ownership of the land had been reverted to KPT. 2.2.562) – (119.830 50.184 13.572 555. Chundrigar Road.2 Notes to the Unconsolidated Financial Statements For the year ended December 31.456 (Rupees in ‘000) Accumulated as at January 01.183 7.924) 38.662 6.295. (the “Plot”).

1 million or net book value not exceeding Rs.25 million Computer equipments 45. House No C-95.094 1.2.649 (13.791. 2015 .362 1.637.594 515.358) 1.545 7.089 Furniture and fixtures 317.756 – 15.757) 23.139 254 3.452. Aqib Javaid Bhatti.611 Net Book value as at December 31.001 5.567 144.752 (197.773 (17.855) 539. 0.882) Additions / (deletions) 4.172 802.296 278 726 651 484 – 2.669 5.626 317.154 1.171 80.634 211. 0.141.718 126.138 46.064.183 7.934 (1.034 153 78.291 2.836 136.655 (Rupees in ‘000) Cost 45.026) 304.882 2015 235 2014 Electrical and office equipments 162.490 (13.697 1.793 – 15.174 82.394 1. Lahore.042 980.997 197.573 12.030) 6.933.152 979 42 6. 2014 2. Block-D.665 55.367 555.273 1.924 1. 2014 Buildings on leasehold land Freehold land Leasehold land Buildings on freehold land Particulars Property and Equipment 10% 20% 10% to 33% 10% 5% – – 5% Rate of Depreciation % per annum Notes to the Unconsolidated Financial Statements For the year ended December 31.749 181 35.003.290 116 Items retired from the books and claimed from the Insurance companies Computer equipments Electrical and office equipment Furniture and fixtures Leasehold Improvements Vehicles 2.681) For the year / Accumulated (on deletion) as at December 31.173 46.697 1.518 153 80. 2014 Owais Bin Samad. Sadiqia Colony.591.907 (13.936 2.4 4.154 Electrical and office equipments 1. Maraj Pura.992) – (1.292 (Rupees in ‘000) – 35 35 541 309 850 Accumulated Book Sale depreciation value proceeds Bid Bid Mode of disposal 46.152.167 25.2.738 224.267 (21.445 26.245 134.707 119 7.493) 187.947) 35.697 1.032) 52.184 13.3 Note As at January 01.030) – (25. office and computer equipment 206. Particulars of buyer Items individually having cost less than Rs.996 1.064.018 COST – – – (13.456 571. 2014 DEPRECIATION / IMPAIRMENT 2014 Accumulated as at January 01.634 196.048.435 46. 1 million or net book value exceeding Rs.173 162.675 425. 2014 Detail of disposal of property and equipment during the year Items individually having cost more than Rs.794 (8.822 346.662 53.456 558.25 million Leasehold Improvements Vehicles Electrical.532 2.201 71.078.011) 300.143 As at December 31. North Nazimabad. House # 5 Street # 18.833 317.772 14.327 Description – – 27.48 Annual Report 2015 12. Karachi.454 (162.712 (118.680 (113.681 124.395 5.366 485.032) 199.

693 226.116) 339.489.084 million (2014: Rs.149 2.314 99. 2014 (204.975 16.032 1.31% 9.116) – 6.004. 13.420.647 515.525 622.418 1.181 3.722.489.284.618.314 2. 2014 890.994 106.785 382.717 million).708 – 124. 2014 AMORTIZATION For the year 2014 In the current year.725 1.693 226.697.491 307.910 6.149 2. 2015 2.989 124. 2015 AMORTIZATION For the year 2015 Included in cost of computer software are fully amortized items still in use having cost of Rs.424 792.100 713.591 1.917 90. 302.697.634.16.489.31 % 9. 2014 2. 2015 Annual Report 2015 49 .354 Accumulated Adjustments / as at December write offs 31.09 % Rate of Amortization % per annum Notes to the Unconsolidated Financial Statements For the year ended December 31.116) (204.923.725 1.2 Annual test for impairment 13. INTANGIBLE ASSETS 1.785 Net Book value as at December 31.453 As at January 01.197.618.731 565. 291.149 2.040 (Rupees in ‘000) Accumulated as at January 01.020. 2015 323.262 – 23.708 124.116 94.527 99.489.116) – – – – – – Adjustments / write offs 3.744.453 As at December 31.149 204.446 100.099 Net Book value as at December 31.310 1.459 204.668 – – – – – – 2.004.453 As at December 31. 2015 10% to 50% 20% 8.899 Computer Softwares (204.1 Computer Softwares Core Overdraft / Working Capital Loan Relationships Core Deposit Relationships Particulars 13.446 – 100.527 905. the Bank assessed the recoverable amount of core deposit relationships and determined that no impairment loss exists.09% Rate of Amortization % per annum 10% to 50% 8.453 Additions / (deletions) Core Overdraft / Working Capital Loan Relationships Core Deposit Relationships Particulars As at January 01.668 3.116 – Brand 2. 2014 COST (342) (342) – – Accumulated Adjustments / as at December write offs 31. Intangibles – – 124.525 622.471.354 (Rupees in ‘000) Accumulated as at January 01.987 (204.420.310 – – Additions / (deletions) 1.014 107. 2015 (387) (387) – – Adjustments / write offs COST 3.668 16.

338) (767.351.583.408) 9. 2015 2014 (Rupees in ‘000) DEFERRED TAX ASSETS Deferred debits arising due to: Provision against loans and advances Provision against other receivable Provision against balances with other banks Provision against off balance sheet Items Unused tax losses Excess of tax base of investments over accounting base Minimum turnover tax* 6.466) (174.377) (33.Notes to the Unconsolidated Financial Statements For the year ended December 31.377) (33.251 13. the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.2 * Included in the unrecognised deferred tax assets.134.139.822. 50 Annual Report 2015 . Ministry of Finance and Economic Affairs (Economic Affairs Division). 2015 Note 14.209.418 11. the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan. 14.269 64.273. 14.712 – 13.604) (644.376 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated tax depreciation on owned assets Fair valuation of subsidiaries and associates Accelerated tax amortization on intangible assets Unrealised exchange gains Unrealised exchange losses Surplus on revaluation of securities Deferred tax assets Unrecognised deferred tax assets Recognised deferred tax assets 14.416. interest rates.928) (2.504) 10.940 7. The financial projections involve certain key assumptions such as deposits composition.005) (2.753.329 432. in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers.231.935.812 11. through Office Memo 1(16)/50/DM/86 dated July 8. 1989 respectively and.393) (301.079 640.725) (760.604) (42.539.683) (1.288 (185.991.326) (306.342 291.101 4.784 (691.1 In 1987 and 1989.992) (11. 1987.1 14.795) (1.098 289.257) (20.101 13.2 The unrealised exchange losses of the Bank (formerly PICIC) as on April 21.171 62. Any significant change in the key assumptions may have an effect on the realisibility of the deferred tax asset. 1987 and 1(12)/50/DM/89 dated June 1.749 10. investment returns and potential provision / reversals against assets. The management has recorded deferred tax asset based on financial projections indicating realisibility of deferred tax asset over a number of future years through reversals as a result of recoveries from borrowers and realisibility of remaining deferred tax asset against future taxable profits.101 3. growth of deposits and advances.669) (1.184 2.

033) (913.085 (111.604) 268.644.338) (767.467) (1.377) (33.329) – – – – – 6.387) 7.784 (1.067 (4.991.231.326) (306.604) (644.251 13.168.081) (2.328) (300.244) (1.269 152.329 432.466) Deferred tax assets 11.101 3.265) (9.101 4.586) (197.784 (1.525) (9.923) – – – – – – – – – 602.753.418 Unrecognised deferred tax assets (1.712 – 13.416.251) – (1.637.393) (301.708 (566.101 4.816.338) (767.408) 10.249.506 291.101 4.359 13.599) (811.812 1.033) – (913.992) (11.184 2.342 291.880 242.098 289.749 2014 Balance as at January 01.992) (11.001 – – 62.079 640.940 62.750 207.184 – – – – – 7.201.472) (2.273.329 (185.822) 11.109 (567.604) (644.795) (11.725) (760.695) 602.329 10.551) 190.376 (1.477) – – – – – – (913.795) 11.342 291.329 (691.376 * Included in the unrecognised deferred tax assets.924) – – – 370.377) (33.139.539.812 (169.134.251 13.377) (33.257) (20.238 11.139.164) – (108) – 354. 2014 Recognized in profit and loss account Recognized in equity Balance as at December 31.359 – – 64. 2015 (Rupees in ‘000) Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Provision against off balance sheet Items Unused tax losses Excess of tax base of investments over accounting base Minimum turnover tax* 7.269 (663.604) (42.171 (174.956) Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated tax depreciation on owned assets Fair valuation of subsidiaries and associates Accelerated tax amortization on intangible assets Unrealised exchange gains Unrealised exchange losses Surplus on revaluation of securities – 602.739 Recognised deferred tax assets 10.Notes to the Unconsolidated Financial Statements For the year ended December 31.377) (33.928) (2.408) 442. 2015 Recognized in profit and loss account Recognized in equity Balance as at December 31.739) 43.184 2.886 (4.134. Annual Report 2015 51 .329 432.184 2.033) (174.416.005) (2.991. 2015 14.393) (301.811 (90.822. 2014 (Rupees in ‘000) Deferred debits arising due to: Provision against loans and advances Provision against other receivables Provision against balances with other banks Provision against off Balance sheet Items Unused tax losses Excess of tax base of investments over accounting base Minimum turnover tax* Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated tax depreciation on owned assets Fair valuation of subsidiaries and associates Accelerated tax amortization on intangible assets Unrealized exchange gains Unrealized exchange losses (Surplus) / Deficit on revaluation of securities Deferred tax assets Unrecognized deferred tax assets Recognized deferred tax assets 7.935 (1.669) 9.005) (2.273.3 Movement in temporary differences during the year 2015 Balance as at January 01.527.

2 16. advance rent and other prepayments Advance taxation .114 11.900 Investing cash flows – 510.993) (1. deposits.subsidiary PICIC Investment Fund .375 This includes Rs.671 million) in respect of related parties.300.993) (1.005.801 million (2014: Rs.195 16.389 – – 3.Closed end .3 16. 5.000 425. Annual Report 2015 .associated undertaking 15.979 130.341 4.5 (82.355.800 units (50.6 16.2 2015 2014 (Rupees in ‘000) 2.828 252.185. 15.1 52 2015 2014 (Rupees in ‘000) 16.000 425.409 186.000 15.219.32% of its holding) of PICIC Investment Fund (PIF).287 224.458.Notes to the Unconsolidated Financial Statements For the year ended December 31.979 9.575 1.261.342 634.2 Conditional on closing of the transaction described in note 15.421.275.217 285.086 1. Note 16.598 96.664 476.488 2.731 – Analysis of the results of discontinued operation is as follows: Profit from discontinued operations Dividend income before taxation from PICIC AMC Taxation – – 510.169.854 335.595 994.207 951.891 1.478.000 (5. the Bank has signed an agreement with Habib Bank Limited (HBL) to sell 48.1 15.001.399 135.net Non-banking assets acquired in satisfaction of claims Non-banking assets acquired in satisfaction of claims with buy back option with customer Unrealized gain on forward foreign exchange contracts Stationery and stamps on hand Advance for purchase of term finance certificates and sukuk bonds Assets in respect of Bangladesh Insurance claim Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets .157.4 9. 5.276 2.726) (82.744.net of provisions 16.112.3 2.4 (342.468 16.1 & 16.686 1.1 NIB Bank Limited and HBL Asset Management Limited (HBLAML) have signed a Share Purchase Agreement (SPA) for the sale of NIB's 100% shareholding in PICIC AMC.597 538.001 3. Accordingly the investment in PICIC AMC is classified under 'assets held for sale' at the lower of carrying amount and fair value less cost of disposal. Accordingly the investment in PIF is classified under 'assets held for sale' at the lower of carrying amount and fair value less cost of disposal.409 148.1.416) 16.416) (342.100) Profit after taxation from discontinued operations Cash flows from discontinued operations – 504.661. 2015 15 ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS Break up of carrying values of assets held for sale and discontinued operation is presented below: Note PICIC Asset Management Company Limited (PICIC AMC) .684) 7. OTHER ASSETS Income / mark-up accrued Local currency Foreign currencies Advances.

741 million (2014: Rs.Notes to the Unconsolidated Financial Statements For the year ended December 31. generally speaking.502 284.390 million).086 538. The Government of Pakistan. the Government has agreed that it would continue to provide the funds for servicing PICIC’s foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICIC’s own funds not exceeding Rs. deposits. The above mentioned values include properties having market value of Rs.323 177. including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh.773 476. 2. such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area. The market value of the subject assets as of December 31. while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh.043 million (2014: Rs. Provision of Rs. did not accept any responsibility for PICIC’s assets in that area. consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1.545. 1974. 2015 2015 2014 (Rupees in ‘000) 16. the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area.618. 3. for purposes of conversion of foreign currency amounts. the parity rates ruling prior to August 15.2 Advances.324 42. 172. 1971 were used. commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh. Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities. together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability. where the settlement agreement signed with borrowers entails a buy back option.686 16. in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICIC’s assets in Bangladesh nor it is considered necessary to provide for any loss that may arise in respect of PICIC’s assets in Bangladesh. Further.480 145. following an agreement reached between PICIC and the Government of Pakistan during 1976.400.471 million (2014: Rs. and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated.088 34.3 Represents cost of land and building acquired by the Bank against advances and held for resale. 2.947 million) acquired through settlement agreements. there have been certain modifications to the foreign currency advances relating to Bangladesh.522 31.760 257.272 million) has been made against difference between cost and fair value. Accordingly. advance rent and other prepayments Advances Deposits Advance rent Other prepayments 41. 151. 2015 was Rs. 16. Subsequently. 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation. Furthermore. Annual Report 2015 53 .4 All the assets and liabilities as of November 30. However. such allocated amounts.417. 82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery. 1.

741 62. 1.418.286 – 11.394 1.381.147) 2.576.288 In local currency In foreign currencies 18.732.7 6.684 2015 2014 (Rupees in ‘000) 2.Notes to the Unconsolidated Financial Statements For the year ended December 31.750.000) (16.281.286 916.4 18.906.668 61.231.141 26.676.894 85.684 Annual Report 2015 18.895 11.092 3.750.645.534.073 26.331.376 This includes a sum of Rs. in accordance with the policy of the Bank.668 162.593 18.894 18.650.726 Note 17.177.466 million (2014: Rs.754.469.196 1.300.668 61.894 BORROWINGS Particulars of borrowings with respect to currencies Details of borrowings .877 106. which has not been recognised as income and deferred in these unconsolidated financial statements.940 85.650.676.073 26. In Pakistan Outside Pakistan 18.240 95.104 85.740.6 1.216 2.2 (9.528 85.741 62. 30.300.527 133.532) – (9.676.15.466 million) representing unrealised exchange gain.741 62. 141.469.8 .698 85.secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long Term Financing Facility Long Term Finance for Export Oriented Projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency Other borrowings 54 – 2.564 2.772) 1. 2015 2015 2014 (Rupees in ‘000) 16.5 18.677 982 64. as stated in note 6.348 415.421.5 Particulars of provision against other assets Opening balance Charge for the year Reversals Write offs Transfer to / from advances / investments Closing balance BILLS PAYABLE (4. 30.1 149.954 1.3 18.636 35.618.6 10.750.205) (7.450.836 162.339 In Pakistan Outside Pakistan 18.612 – Reversal on disposal of non-banking assets 16.

the Bank is contending that any amount of principal and interest is payable to the GoP only when recovered from the related sub-borrowers. 18.456 19.906 510.479.948.00% to 6. 162. SUB-ORDINATED LOANS Term Finance Certificates .6 These borrowings are subject to mark-up rates ranging from 6.Notes to the Unconsolidated Financial Statements For the year ended December 31.non-remunerative Margin accounts 33.605.00%) per annum with remaining maturity upto four months.25%) per annum with remaining maturity upto two months.151.679 33.6% (2014: 6.516 4.195. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts .195 Financial Institutions Remunerative deposits Non-remunerative deposits 19.5%) per annum maturing within six months. who have availed the German credit.90%) per annum with remaining maturity upto one month.197.5% (2014: 5.50% to 9.400 5.1 Particulars of deposits In local currency In foreign currencies 20. Government securities have been given as collateral against these borrowings. This also includes unrealized exchange loss of Rs.381 633. 18.385 130.444. Unsecured Annual Report 2015 55 .894 97.286 million in respect of liabilities against German credit representing principal amount of loan and Rs.818.10% to 6.444.708 38.197.011 million (2014: Rs. 18. who have availed the related German credit. 2015 2014 (Rupees in ‘000) 19. 18.347.509 7.011 million) which has been netted off against unrealized exchange gain (note 16) as it is payable when recovered from sub-borrowers. However.6%) per annum with remaining maturity upto ten years.5 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark up rate of 5.0% to 8.684.081.00% (2014: 5.386 41.341.020 26.980 122.359 7.865 130.630.109. 2006.463 35.50% to 10.4 Borrowings from SBP under Long Term Financing Facility (LTFF) are subject to mark up rates ranging from 2. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 21).626.5% to 8. 18.8 The Government of Pakistan (GoP) has claimed an amount of Rs.5% to 3. 96.109.719 669.50% (2014: 9.894 105. 2015 18.Listed. 96.891 382.7 These borrowings are subject to mark-up at rates ranging from 6.621 105.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up rates ranging from 1.70% (2014: 9.980 4.444 million as interest thereon till June 30.5% to 6. 45.

591 10.Managed Fund Payable to defined benefit plan Security deposits against lease Provision against off balance sheet items Advance against sale of properties Advance arrangement fee against syndicated loans Others 56 Annual Report 2015 35.095 92.194 57. 2014 Issue Amount Rs.114.220 60. Maturity June 19.453 9.129 2.426 61.505 141.110 2. the Bank will be required to comply with the SBP instructions prevalent or issued at the time.516 3.277 15.973 229. 2015 Mark-up Floating (no floor.910 438.000 19.534 383.632 734. 4.430 87. subject to the SBP approval and not less than forty five days prior notice being given to the Trustee and the Investors. no cap) rate of return at Base Rate +1.708 37.095 48. Lock-in-Clause Neither profit nor principal can be paid (even at maturity) if such payments will result in a shortfall in the Banks' Minimum Capital Requirements (MCR) or Capital Adequacy Ratio (CAR) or increase any existing shortfall in MCR and CAR. 2022 Call Option The Bank may call the TFCs.5 667.364 37.231 114.267 . Note 2015 2014 (Rupees in ‘000) 21.771 68.430 229.694 43.509 5.15% (The Base Rate is defined as the average “Ask Side” rate of the six month Karachi Interbank Offered Rate (“KIBOR”)) Security The TFCs are unsecured and subordinated to all other indebtedness of the Bank including deposits Issue Date June 19.037 66.978 400.952 43.539 71. on any profit payment date from the 60th month from the last day of public subscription and on all subsequent profit payment dates.02% of the Issue Amount for the first ninety months followed by remaining 99.988 32.198.463.293 5.035 million Rating A+ (A plus) Tenor 8 years from the Issue Date Redemption Fifteen equal semi-annual installments of 0.013 3.611 598.005 95.436 391.500 78. in part or full.220 57. In case the lock-in clause goes into effect.Notes to the Unconsolidated Financial Statements For the year ended December 31.70% on maturity at the end of the ninety sixth month.371 258.718 462.771 68.064 348. Loss Absorbency The TFCs will be subject to loss absorbency clause as stipulated under the "Instructions for Clause Basel III Implementation in Pakistan". OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned income on inland bills Accrued expenses Payable to Worker's Welfare Fund Withholding tax / duties payable Insurance premium payable Advance from borrowers for the settlement of loans Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized loss on forward foreign exchange contracts Security and other deposits Payable to IBRD .

027 7.000 120.537 1.659 3.795) 78.000.1 Direct credit substitutes Contingent liability in respect of guarantees given favouring: Government Financial Institutions Others 24.199 610.486 19. Limited holds 9.332 (42.512 22.749 – 22.417 764.2 Transaction-related contingent liabilities / commitments Guarantees given in favour of: Government Financial Institutions Others Annual Report 2015 57 .000. 10 each 3.930 17.556 – 2.000.124.591.216.507 26.749 – 22.824.109.164 10.088 6.743 (5.512 103.749 24.000 – 14.302.000.278.164 Fully paid in cash Issued for consideration other than cash (under schemes of amalgamation) Issuance of shares on discount 32.244 7.1 The holding company Bugis Investments (Mauritius) Pte.2 Issued.2. SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS .417 6.119 12.728.466) 1. SHARE CAPITAL 22.027 32.278. Market treasury bills Pakistan investment bonds Term finance certificates Investment in shares of listed companies 104.147 1.175.122 Related deferred tax liability 121.000 Ordinary shares of Rs.866 1.749 624.728.789.994 (644.655) 21.648.088 10.000.598 (2014: 9.Notes to the Unconsolidated Financial Statements For the year ended December 31.902.244 62.000 2014 (Rupees in ‘000) 12.360.000 22.426. 2015 2014 (Rupees in ‘000) 23.302.028.028.818.228 CONTINGENCIES AND COMMITMENTS 24.125 1.241 103.721 – 1.250. subscribed and paid up Fully paid up ordinary shares of Rs.241 62.000.851. 2015 22.259.188 29.902.1 Authorized 2015 2014 2015 (Number of Shares) 12.591.789.748.259.105.860.598) ordinary shares.NET Surplus on revaluation of available-for-sale securities 24.105.824. 10 each 120.648.659 764.851.124.

568 34.471 44. disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC).668 20. is confident that they have strong grounds to contest this penalty and are optimistic that the outcome will be decided in favour of the Bank.880.809.019. 2015 2014 (Rupees in ‘000) 24. 700 million was imposed by the Competition Commission of Pakistan (“the Commission”) on all the member banks utilizing the 1 link Switch on account of uncompetitive behavior and imposing of uniform charges on cash withdrawal for off network ATM transactions.Notes to the Unconsolidated Financial Statements For the year ended December 31.265.9 Tax Contingency The income tax returns of NIB Bank Limited have been filed up to and including tax year 2015 relevant to the financial year ended December 31.206 24. Management is confident that the eventual outcome of the cases will be in favour of the Bank.860.926 – 2. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains. 24. which has been admitted for hearing and will be fixed by the concerned office of the Supreme Court.808. a combined Appellate Order for Ex-PICIC pertaining to tax years 2003 through 2007 was issued by Commissioner Inland Revenue (Appeals) – CIR(A) in which the aforementioned expenses were allowed.643 The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above.5 Commitments in respect of forward lending Commitments to extend credit 22.6 Commitments in respect of forward exchange contracts Purchase Sale 24.370 million (2014: Rs.302.228.943 11.8 Other Contingencies A penalty of Rs.098 42.3 Trade-related contingent liabilities Letters of credit Acceptances 24.530 2. Consequently an appeal was filed with the Competition Appellate Tribunal (“Tribunal”) which has set aside the order of the Commission. 50 million.133 2. representing the Bank.7 Commitments for the acquisition of operating fixed assets 8.370 million). which has suspended the order of the Commission.872 15. These disallowances may result in additional tax aggregating to Rs. The Commission has preferred an appeal before the Supreme Court. Appeals filed against orders are pending at various appellate forums.204 22.951.618.4 Other Contingencies Claims against the Bank not acknowledged as debts 24. tax years 2003 and 2004 for Ex-National Development Leasing Corporation Limited (Ex-NDLC) and from tax years 2004 through 2008 for NIB Bank Limited. the tax authorities have filed appeal with Income Tax Appellate Tribunal (ITAT) against above combined Appellate Order.370 266.032 8.123. During the year ended 2013.528 22. 58 Annual Report 2015 .105. However.255 153. which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law. 1. The management in consultation with external legal counsel.761.894 24. 2015 2015 2014 (Rupees in ‘000) 24.543. 2014. from tax years 2004 through 2008 for Ex-PICIC Commercial Bank Limited (Ex-PCBL). 1. The concerned banks filed a constitutional petition before the High Court of Sindh. The Bank’s share in this penalty is Rs.

429 5. 8.896. 2015 2015 2014 (Rupees in ‘000) 25.201.057 2.771 4.095.726 24.793 320 471.007.693.565 372.083 462.653 14.126 763.071.148.239 OTHER INCOME Gain on disposal of property and equipment Rent Gain on trading liabilities Recovery against written off assets Gain from insurance against loss of fixed assets .000 36.014 5.245 574.681 5.139.254.512 26.890 89.395 8.006 3.578 GAIN ON SALE OF SECURITIES .021.043 6.641 162 22.653 6.737.769 MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings 27.215.368 136.233.573 10.308 1.026 919.net Gain on sale of non-banking asset acquired in satisfaction of claims Annual Report 2015 59 .949 10.988 – 7. 10.719.669 509.861 42.608 39.618 1.Notes to the Unconsolidated Financial Statements For the year ended December 31.717 45.138 1.631 73.099 14.674 46. 9.NET Market treasury bills Pakistan investment bonds Term finance certificates Ordinary shares of listed and unlisted companies Units of mutual funds Sukuks 28.899.981 2.420 32.794 4.457 5.078 1.769 54.611 64 5.305 15.451.234 11.198 3. MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers and financial institutions On investments in: Held-for-trading securities Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money lending 26.067 – 41.

60 Annual Report 2015 .901 10.1 12.333 43. reconciliation of tax charge to the accounting profit has not been presented.409. Legal and professional charges Communication Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscriptions Auditors' remuneration Depreciation Amortization Travelling. conveyance and vehicles running Security services Fixed assets written off Others 35. allowances and other expenses Brokerage and commission Rent.387 40.730 825 1.449 162.847 209.917 46.863 132.505 455.454 339.084 944.006.436 7.505 – 95.634 177.262 6.621 60.370 176.489 32.364 776 7.477 1. etc.730 825 1.083 14.205 108.994 65.1 Auditors’ remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses 29.210 1.818 105.778 487.444 195.996 39.272 5.201.628 44.2 No donation was paid during the year.4 29.081 15.210 300 363 4.024 11.428 304. insurance.1 31. allowances. 2001.428 8.892 1. and for this reason.912 323.359 – 1. Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors' fees.075 207.919 8.165 96.293 8. etc.657 21.880 12.851 197.172.927.905 17.905 300.403 94.956 209. electricity.646 6.941 18. OTHER CHARGES Penalties of the State Bank of Pakistan Operational loss Worker's Welfare Fund Impairment charge on tangible fixed assets 31.690 2.241 66.506 13. 2015 Note 2015 2014 (Rupees in ‘000) 29.351 144.229 29.971.773 146. ADMINISTRATIVE EXPENSES Salaries. taxes.098 4. 30.Notes to the Unconsolidated Financial Statements For the year ended December 31. TAXATION For the year Current Prior years Deferred 31.698 – 60.315 418.400 27.096.2 13 2.1 This includes charge for minimum tax payable under the Income Tax Ordinance.

The benefits under the gratuity scheme are payable in lump sum on retirement at the age of 60 years or earlier cessation of services.428 11.419 26 Bank's own staff strength at the end of the year Outsourced 2.851 Earnings / (loss) per share .25 Earnings per share .Wise withdrawal rates Annual Report 2015 61 .1 The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years.086 8.Wise withdrawal rates Moderate Age .Salary increase rate .Mortality rate . The benefit is equal to one month's last drawn basic salary for each year of confirmed service.basic / diluted . 10.851 (Rupees) (0.Notes to the Unconsolidated Financial Statements For the year ended December 31. 504.50% Based on State Life Insurance Corporation of Pakistan SLIC (2001-2005) Ultimate Mortality table Based on State Life Insurance Corporation of Pakistan SLIC (2001-2005) Ultimate Mortality table Moderate Age .675 587.basic / diluted .543 1. Eligible employees are those employees who have joined the service of the Bank on or before March 31. 2015 using the "Projected Unit Credit Method".063.005 DEFINED BENEFIT PLAN 35. subject to a minimum of five years of service. 2006.052.103 (Number) STAFF STRENGTH Permanent Temporary / on contractual basis 2. (1.629 8.651.900 (Numbers in '000) Weighted average number of ordinary shares outstanding during the year 33.Valuation discount rate . 35.50% 9.659) 7 8 10.05 (Rupees in '000) CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 34.10) – 0.678 3.25% 8. The actuarial valuation was carried out for the year ended December 31. 2015 Note 2015 2014 (Rupees in ‘000) 32.012. BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Profit / (loss) after taxation from continuing operations 2.Continuing Operations 0.617.Discontinued Operations 35.293 Profit after taxation from discontinued operations – 10.25% 10.2 Principal actuarial assumptions The actuarial valuation is carried out periodically.177 19 2.302.Withdrawal rate 2015 2014 9. The main assumptions used for actuarial valuation are as follows: Gratuity .697.302.196 482 2.645.445 560 Total staff strength 2.

114 57.517 57.806) 57.718 35.043 59.718 12.3 Reconciliation of payable to defined benefit plan Present value of defined benefit obligations 35.5 Movement in balance payable Opening balance Expense recognized Benefits paid to outgoing members Actuarial gain on remeasurement of obligation (recognized in OCI) Closing balance 35.740 9.6 Reconciliation of present value of defined benefit obligation Opening balance Current service cost Interest cost Benefits paid Actuarial gain on remeasurement of obligation (recognized in OCI) Closing balance 35.5% 35.910 60.595) (3.548) (5.914 13.045 55.806) 57.6 57.897 60.910 – 57.678 62.796 23.078) 55.548) (5.806) 7.7 Sensitivity Analysis on significant actuarial assumptions: Actuarial Liability – – – – Discount Rate + 0.893 63.5% Long term salary increases by 0.5% Discount Rate .315 60.178 12.078) 13.4 Charge for defined benefit plan Current service cost Interest cost Cost recognized in the profit and loss account Actuarial gain on remeasurement of obligation (recognized in OCI) Total defined benefit cost for the year 35.0.469 (10.205 (3.718 34.8 Analysis of Present value of defined benefit obligations – Vested / Non-vested Vested benefits Non-vested benefits Total – Type of benefits earned to date Accumulated benefit obligation Amounts attributed to future salary increases Total 62 Annual Report 2015 . 2015 Note 2015 2014 (Rupees in ‘000) 35.818 (10.595) (3.718 6.888 58.718 60.027 7.027 7.5% Long term salary decreases by 0.910 60.349 6.Notes to the Unconsolidated Financial Statements For the year ended December 31.818 (5.718 – 60.910 33.914 6.469 6.399 60.910 60.910 60.205 (4.403 27.718 56.178 (4.047 58.078) 55.349 6.718 6.

Atif R.914 63.996 *2 1 6 5 – – – – 11.364 269.652 – 771.092 3.914 – – – – Deficit 57.829.908 3.078) (3.063 5.139) 35.485 14.065 million.10 Expected contribution for the next one year The Bank provides for gratuity as per the actuary's expected charge for the next one year.921 – – 28.230 1.910 Fair value of plan assets – 60.996 – – – – – – – 718.065 – 14.628 71.422 133.910 60.806 84. 2015. 2016 would be Rs.9 2014 2013 2012 2011 63.718 55.714 251.371 772 747 The President / Chief Executive is provided with Bank maintained cars.936 4. * Mr.406 66. 2015 2015 35.153) (8.645 51.588 71.806 15. 2015 and Mr.387 – – 3.163 2.873 77. as per terms of the employment.Notes to the Unconsolidated Financial Statements For the year ended December 31. Directors fees represents fees paid to certain non-executive directors of the Bank and no further benefits are paid to non-executive directors. Equal monthly contributions are made to the fund by both the Bank and the employees at the rate of 10% of basic salary.647) (8.592.718 55. 10. medical insurance and security arrangements.894 483.755 61. Based on actuarial advice. COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Executive 2015 2014 Directors 2015 Executives 2014 2015 2014 (Rupees in ‘000) Fees Managerial remuneration Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Others Number of persons – 30.092 10.806) (3.409 2. DEFINED CONTRIBUTION PLAN The Bank has established a provident fund scheme administered by the Board of Trustees for all permanent employees. Annual Report 2015 63 .588 71.209 1. 36.387 11. management estimates that the charge in respect of the defined benefit plan for the year ending December 31. Badar Kazmi left on January 6. Bokhari joined with effect from January 7.098 (Rupees in ‘000) Summary of valuation results for the current and previous periods Present value of defined benefit obligations 57.098 Experience gain on obligation (5. 37.107 639.

105.774.525 223.599.086 1.687.870 10.438 2.043.029 22.499 225.675 587.428 7.870 8. The fair values of investment in unquoted debt securities of which fair values are not available.792 105.132.279 2.231 110.675 587.776.980 4.034 2. fixed term advances of over one year.617.951. staff loans.733 94.741 130.494 110.676.645.Notes to the Unconsolidated Financial Statements For the year ended December 31.401 224.035 176.389 2.573.664.109.734.044. 2015 38.809. staff loans and fixed term deposits of over one year.192.437.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.109 169.216 85.1 On-balance sheet financial instruments 2015 Book value 2014 Fair value Book value Fair value (Rupees in ‘000) Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Assets held for sale Other assets 10.980 4.216 85. other assets and other liabilities cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.740.720.195 1.725 130.924.561 1.430 176.036 – 5. Fair value of unquoted equity securities have been stated at the lower of cost and Net Assets Value as per the latest available audited financial statements.740.468 8. fixed term advances.951.731.750.044 93.204 21.576.766.036 – 5.994 3.034 2.236.153.543 1.086 1.229 93. fixed term deposits.668.197.646 54.573.994 4. the fair values of other on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced.112.137.894 4.844 22.528 62.438 224.428 7.943 8.668 21.063.063.731 2. Except for the above investment in unquoted equity securities and debt securities of which fair values are not available.468 175.052.664.880 11.158 93.645.444.576.696. 64 Annual Report 2015 .699.123.898.437.525 8.791.894 105.660.444.898.543 1. FAIR VALUE OF FINANCIAL INSTRUMENTS 38.730 1.052.075.668.109.924.386 60.195.528 11.894 4.703.528 62.047.441 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 38.516 1.836. Fair values of quoted held-to-maturity securities and sub-ordinated loans are stated at market values.

Subsidiaries Unlisted shares -Operating fixed assets -Intangible assets -Deferred tax assets .481 Financial assets measured at fair value .894 4.216 85.034 - - - - - - - Financial liabilities 2015 - - - 20.544.052.898.676.973 4.512 3.net 235.Lendings to financial institutions .539.- - Annual Report 2015 6.692 - - - 92.501.576.078.645.749 1.078.Investments Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Debt securities (listed TFCs) Available for sale On balance sheet financial instruments 5.741 130.Associates Closed end mutual funds Open end mutual funds .003.237 - 74.959 1.985 10.446 890.749 1.985 10.431.668.245 850.599.481 Total The table below analyses financial and non-financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised: 38.731 2.109 235.Investments Pakistan Investment Bonds Sukuk Bonds Defense Saving Certificates Cumulative Preference Shares Ordinary shares of unlisted companies Debt securities (listed TFCs) Debt securities (un-listed TFCs) .973 4.268 - - 86.730 55.078.870 - - Loans and receivables 224.401) 20.044 110.985 10.564.658 - Level 1 92.599.Advances .Assets held for sale .380 1.233.516 1.Other liabilities - - 86.658 300.178 24.543 1.195.444.544.791.034 - - - - 7.481 Total (1.658 300.127.668.985 10.692 - - - - 7.544.924.195.564.086 1.078.731 2.Other liabilities Non-financial assets not measured at fair value .272 - - - 6.994 3.870 6.272 - - - 10.481 Level 2 - - - - - - - - - - - Level 3 Fair value 92.052.013 - - - 6.Sub-ordinated loans .112.294 10.216 85.294 - 1.658 300.044 110.109 - - - 1.237 - Financial assets not measured at fair value .491 9.924.741 130.444.516 1.959 130.564.Deposits and other accounts .921 2.979 - - - - - - - - (Rupees in ‘000) Non-financial Non-financial assets liabilities 130.894 4.788 5.979 2.034 243.401 - 2.564.127.959 - - Non-financial liabilities not measured at fair value .245 850.233.668.426.375.921 2.979) 17.034 - - - 92.Other assets .788 5.730 55.780 - 74.Borrowings .3 FAIR VALUE MEASUREMENT Notes to the Unconsolidated Financial Statements For the year ended December 31.791.959 - - Held to maturity Financial liabilities not measured at fair value .426.375.086.668.848.491 9.086.543 1.848.676.Other assets 74.Bills payable .645.501.Cash and balances with treasury banks .003.898.178 24.668.539. 2015 65 .140.994 3.658 - - - - - 5.112.013 3.788 5.086 1.658 - - - 5.268 (224.788 300.446 890.496.449.668.356.979 226.132 1.544.431.Balances with other banks .449.576.780 - 74.

482.655.973 554.664.530 1.676.864 1.730 55.433 2.829 2.310 - 47.750.758.Other liabilities Non-financial assets not measured at fair value .528 .634 850.345 115.847.035) 23.829 177.Subsidiaries Unlisted shares .Sub-ordinated loans .Bills payable .528 .000. Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability.093.588.342 2.973 - - 1.894 .000.588 8.478.525 14.980 4.676.406.758. unobservable inputs).894 .176.197.829) 15.996.093.740.345 - - - 433.269 31.345 115.094 - - Non-Financial liabilities not measured at fair value .197. Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.178 30.437.310 (176.850 6.093.139.063.109.Advances .699.197. derived from prices).Intangible assets .646 93.675 587.908 554.743 - - - 7.490 (1.428 7.140 - 14.701.743 - - - 53.835 - - - 53.675 587.281 470.Lendings to financial institutions .Investments Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Debt securities (listed TFCs) Available for sale On balance sheet financial instruments Notes to the Unconsolidated Financial Statements For the year ended December 31.Other assets .035 - 2.973 39.530 1.750.Other liabilities - - 47.973 39.376 3.758.693.e.453 Total - - - (Rupees in ‘000) Non-financial Non-financial assets liabilities 2014 39.105.62. 2015 .912.438 .785 10.Cash and bank balances with treasury banks .664.139.908 - - - 39.758.438.140 - 14.269 31.835 - - - 7.e.958 2.453 Held to maturity Financial liabilities not measured at fair value .406.269 31.345 433.847.e.Other assets Financial assets measured at fair value .197.478.490 2.693.634 850.446.66 Annual Report 2015 .236.Operating fixed assets .Borrowings .908 - - - - 39.676.178 30.093.676.646 93. either directly (i.193.973 - 3.908 554.437. The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: 6.740.438.428 7.376 2.109.525 - Loans and receivables 6.813 - - 8.908 - Level 1 53.973 39.105.453 - - - - - - - - - - Level 3 Fair value Level 2 53.Balances with other banks .980 4.573.195 1.Deposits and other accounts .588.433 2.342 2.62.730 55.813 - 6.453 Total Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.438 - - - - - Financial liabilities - - - 23. as prices) or indirectly (i.850 2.195 1.785 10.567.693.236.281 470.Investments Pakistan Investment Bonds Sukuk Bonds Defense Saving Certificates Cumulative Preference Shares Ordinary shares of unlisted companies Debt securities (listed TFCs) Debt securities (un-listed TFCs) .588 - 14.036 5.699.829 1.701.996.063.693.446.net Financial assets not measured at fair value .Associates Closed end mutual funds Open end mutual funds .573.269 31.Assets held for sale .Deferred tax assets .908 554.036 5.482.

996 – – – 286.390.944 11.888.668 1.888.389.943 3.953 10.168 27.122 11.858 – – – – Total expenses including provisions 1.413.355.245 1.64%) 2.315.011.162.315.551 (59.817 – 50.266) * The respective segment assets and liabilities incorporate intersegment lending and borrowing.489.084.230.765 84.625 2.129.686.350 – (59.183 2. 2015 39.321 730.936 112.200.583.14% 4.380.491.69% (699.821 229.904 1.756 4.00% 7.356 0.128.781. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Bank is organized into reportable segments as disclosed in note 6.91% 45.231.011.087.389 million in PICIC AMC and PICIC Investment Fund respectively which are classified under ' assets held for sale'. 510 million from PICIC Asset Management Company Limited (PICIC AMC) which is classified under 'assets held for sale'.95%) 4.494) – 13.266) – 12.621 237.249 85.182 3. 2014 Segment assets (gross) Segment non-performing loans Segment provision (including general provisions) Segment assets (net) Segment liabilities 95.122 – 10.128.315.021.694.039 (2.323 364.266) (47.342 million and Rs.021.138.201. Segment performance is reviewed on the basis of various factors including profit before taxation.388 50.973) (0. 634.443 1.050.347.966 5.386 407.531 5.280 82.580.237 Segment net income / (loss) before tax Segment return on net assets (ROA) (%) Segment cost of funds (%) 313.328. 2015 Segment assets (gross) Segment non-performing loans Segment provision (including general provisions) Segment assets (net)*** Segment liabilities 118.72% (583.607 70.631.190) 1. ** Head Office / Other includes dividend income amounting to Rs.845 79.646.355.233 1.824 – – 742. 2.158.107 9.011.65%) 4.971 618.474 0.797 772.803. Annual Report 2015 67 .498 202.889. Transactions between reportable segments are carried out on an arms length basis.059 – 9.1.129.996 – – – – – For the year ended December 31.810.117 23.059 79.742 4.573) (1.583 32.852.830 1.801.805 (1.72%) 8.122 49.202.494) (59.339.19.323 4.730.518. Executive Committee and the Board of Directors.756 – 4.467 – (47.086 534.849 1.178) (0.264 526.868 1. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Bank's President / Chief Executive.390.089.127. The segment analysis with respect to business activity is as follows: For the year ended December 31.343 2.806.931.004.089.687.713 Total expenses including provisions (excluding Impairment) (Reversal) / impairment against investment 1.968.266.060 222. 2014 Net interest income Non mark-up income** Net interest and non mark-up income 474. with appropriate transfer pricing.47% Segment net income / (loss) before tax Segment return on net assets (ROA) (%) Segment cost of funds (%) Retail Treasury Head Office / Other (Rupees in ‘000) Adjustments* 216.494) As at December 31.398 1.841 79.621 – 231.156 Total expenses including provisions (excluding Impairment) Impairment against investment 1.658.005 22.103 9.75% 3.490.213.925 981.125 14.920.127.472 2.351 105.69% (1. 2015 Corporate and Investment Banking Commercial Net interest income Non mark-up income Net interest and non mark-up income 769.812.374.678 422.237 – 234.477 Total expenses including provisions 1.131 2.860 82.797 9.14% – – – – – – – 1.895 197.268 1.169 (16.618 – 79.478.127 1.263 287.978) 0.742 – 4.021.170 14.99% 10.25% (3.038) 2.745 71.389 286.700.819 100.776 26.360 – – – N/A N/A As at December 31.730 69.592.613 68.778 (47.569.46% 6.889 4.326 477. The adjustments column eliminates intersegment lending and borrowing.751.273 37.128.360 – – 238. *** Head Office / Other includes investments of Rs.800 765.687.764 2.Notes to the Unconsolidated Financial Statements For the year ended December 31.008.048.

898 142. associated undertakings (refer note 10.565 502.720 2.983) – – – – 2014 Subsidiaries – 83 3. – 171 – – – 16.479.696 – 55.414) 72.479.262 – (23.568 12.656 – – 14.333.11).715.741 – 61. employee benefit plans (refer note 35) and its key management personnel.713.766.333. Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties except for staff loans which are on discounted rates as per industry practice.507 – 912.680) 60. 2. 2015 .981 (980) (239.440 23.820) – At the end of the year Deposits At the beginning of the year Deposits during the year Exchange difference Withdrawal during the year – – – Advances At the beginning of the year Addition during the year Repaid during the year Balances outstanding as at the year end 2015 Holding company The details of transactions with related parties is given below: Salaries and allowances of the key management personnel are in accordance with the terms of their employment.342 million and Rs.525.552) – – – – 2015 520 – 2.336) (12.440 318.066 – 2.543.10).607 – 3.607 (345.990) – – – – 2014 Investment in shares / mutual funds .976 289.008 233.989 912.510 5.479.066 – 6.905 24.607 – 962.456.333.712 – (34.987 55.656 – 136 (1.593 35.179.980 5. The Bank has related party transactions with its holding company (refer note 1).898 33.673) (12.838 536 (2.000 10.066 – 2.696 24.301) (5. 634.897 – (251) (2.384 60.479.972 At the end of the year 19.865) (Rupees in ‘000) 2015 Associates – – – – – – 35.565 31. – – – 171 – At the end of the year* Receivables At the end of the year Payables At the end of the year 644 – 2.860) 2014 2014 24.558 19 (491.976 61. Contributions to defined contribution plan are made in accordance with the terms of the contribution plan.478.527.508.68 Annual Report 2015 40.757) 39.482.243 – (2.780 289.906 43.780 – 235.713) – – – – – – – – 2014 – 168 3.730 25.914.565 12.203 6.968 (4.900) 3.389 million in PICIC AMC and PICIC Investment Fund respectively which are classified under 'assets held for sale'.401. RELATED PARTY TRANSACTIONS Notes to the Unconsolidated Financial Statements For the year ended December 31.cost At the beginning of the year Investments made during the year Investments sold / written off during the year 16.679.876 4.780 – 50.100 (5.528.583 (4.148) 2015 Key Management Personnel Other related parties * Subsidiaries and associates include investments of Rs.444) 43.775 – (541.575) 2015 – – – – – – 24.178. subsidiaries (refer note 10.1 40.028 (123.980 536.728 24.066 – 2.

529 68. Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines as stipulated by State Bank of Pakistan vide BPRD Circular No. 41. 06 of August 15. The Bank manages its capital structure and makes adjustments to it in the light of changes in economic conditions.1 Capital Management The Basel III Framework is applicable to the Bank on both at the consolidated level (comprising wholly owned subsidiaries and associates) and also on a stand alone basis. 212.387 105.996 73.391 2015 378 – 108.1 Scope of Application 41 – – Dividend income from shares / mutual funds** – – – – Mark-up / return / interest earned on advances Mark-up / return / interest expensed on deposits* 40. and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to Bank's On and Off-balance sheet exposures. – – – – – Directors’ remuneration Directors’ travelling expense Annual Report 2015 Collateral.110 14.624 million respectively related to PICIC AMC and PICIC Investment Fund which are classified under 'assets held for sale'. The Bank also closely monitors the capital adequacy requirements by applying stressed conditions. 2013 in a phased manner with full implementation intended by December 31.948 – 2.502 3.2 Income / Expense for the year 2014 Holding company 2015 Notes to the Unconsolidated Financial Statements For the year ended December 31.379 – – – 785 1.341 11. risk appetite. The Bank ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis. The said circular has revised the Basel II Framework with Basel III Capital reforms to further strengthen the capital related rules.654 14. the Bank may issue capital / Tier 2 capital.– – – – – – – Remuneration to key management personnel Contribution to Provident Fund Rent expense Commission income – – 1. regulatory requirements and the risk profile of its activities. 2015 69 . These instructions were effective from December 31. 17.322 (Rupees in ‘000) 2015 – – – 235.024 – 10. In order to maintain or adjust the capital structure.838 2014 90 – 105. growth.163 15. 2019.603 30. Banking operations are categorised as either Trading book or Banking book.099 2014 Key Management Personnel Other related parties CAPITAL ASSESSMENT AND ADEQUACY ** Subsidiaries and associates include dividend income amounting to Rs. 510 million and Rs.341 21.109 – – 2014 2. 1.240 – – – – – 1.512 2015 – – – 347. 2013. is used as an outflow adjustment and applicable risk weights are applied to Net Adjusted Exposure.083 – 9.634 – – – – – 542.748 million respectively related to PICIC AMC and PICIC Investment Fund which are classified under 'assets held for sale'.059 67. * Subsidiaries and associates include mark up expense on deposits amounting to Rs.513 – – – 3. if any.127 – – – – 510.962 – 2014 Subsidiaries 2015 Associates 991 – – – – – 46. 41. shareholders' returns and expectations.948 million and Rs.000 2.1. The purpose of capital management at the Bank is to ensure efficient utilization of capital in relation to business requirements.

061.1.117) - 17.123 (43. (b) Tier 2 capital consists of general provision for loan losses (subject to 1.028.164 shares of Rs.035 thousands were issued on June 19.769. Shares listed on the stock exchanges.302.316 (4. The Bank has complied with all regulatory capital requirements as at the reporting date.950) 11.198. 41. subordinated loans and surplus on revaluation of securities.219. 103.266 14. Quoted.512 thousands as at December 31.028.851. 2015 2014 (Rupees in ‘000) 41.623) 474.111) 10. 2015 Cash and near Cash collateral includes Government of Pakistan Securities.769.25% of Risk Weighted Asset). Cash and Cash equivalents (deposits / margins.2 Common Equity Tier 1 capital (CET1): Instruments and reserves 1 2 3 4 5 6 7 8 Fully Paid-up Capital/ Capital deposited with SBP Balance in Share Premium Account Reserve for issue of Bonus Shares Discount on issue of shares General/ Statutory Reserves Gain/(Losses) on derivatives held as Cash Flow Hedge Unappropriated/unremitted profits/ (losses) Minority Interests arising from CET1 capital instruments issued to third parties by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) 9 CET 1 before Regulatory Adjustments 10 Total regulatory adjustments applied to CET1 (Note 41. 10 each. balance in share premium account. The issued.195.2. 4. reserves and accumulated profits/ losses. comprising of 10.1) 11 Common Equity Tier 1 103. subscribed and paid up capital of the Bank is Rs.2 Capital Structure The Bank's regulatory capital base comprise of: (a) Tier 1 capital which includes fully issued.582 (41.527.205) - 103. 2014 having the tenure of 8 years. The said TFCs have been issued as per Basel-III guidelines.Notes to the Unconsolidated Financial Statements For the year ended December 31.219.784 Additional Tier 1 (AT 1) Capital 12 Qualifying Additional Tier 1 capital instruments plus any related share premium 13 of which: Classified as equity 14 of which: Classified as liabilities 15 Additional Tier 1 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group AT1 ) 16 of which: instrument issued by subsidiaries subject to phase out 17 AT1 before regulatory adjustments 18 Total regulatory adjustment applied to AT1 capital (Note 41. lien on deposits).294.533.895 (5.336) - . subscribed and paid up capital.502) - (991. 2015.623) 997.512 (45.028.2.512 (45.438. unsecured and eligible for Tier 2 Term Finance Certificates (TFCs) of Rs.2) 19 Additional Tier 1 capital after regulatory adjustments 20 Additional Tier 1 capital recognized for capital adequacy 70 Annual Report 2015 (743.

318 681.Notes to the Unconsolidated Financial Statements For the year ended December 31.195.071 681.092.00% 7.386 9.50% 7.548 3.86% 8.036) 3.94% 6.463.44% 11.197.195 Tier 2 Capital 22 Qualifying Tier 2 capital instruments under Basel III plus any related share premium 23 Tier 2 capital instruments subject to phaseout arrangement issued under pre-Basel III rules 24 Tier 2 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group tier 2) 25 of which: instruments issued by subsidiaries subject to phase out 26 General provisions or general reserves for loan losses-up to maximum of 1.997.25% of Credit Risk Weighted Assets 27 Revaluation Reserves (net of taxes) 28 of which: Revaluation reserves on fixed assets 29 of which: Unrealized gains/losses on AFS 30 Foreign Exchange Translation Reserves 31 Undisclosed/Other Reserves (if any) 32 33 34 35 36 37 T2 before regulatory adjustments Total regulatory adjustment applied to T2 capital (Note 41.2.880.071 - 4.312.25% 0.219. 2015 2015 2014 (Rupees in ‘000) 21 Tier 1 Capital (CET1 + admissible AT1) (11+20) 11.87% 5.548 14.12% 11.840 52.00% 6.50% 0.332 126.092.548 3.740 3.784 4.988) 3.056 13.316 10.309 121.00% Capital Ratios and buffers (in percentage of risk weighted assets) 40 CET1 to total RWA 41 Tier-1 capital to total RWA 42 Total capital to total RWA 43 Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus any other buffer requirement) 44 of which: capital conservation buffer requirement 45 of which: countercyclical buffer requirement 46 of which: D-SIB or G-SIB buffer requirement 47 CET1 available to meet buffers (as a percentage of risk weighted assets) National minimum capital requirements prescribed by SBP 48 CET1 minimum ratio 49 Tier 1 minimum ratio 50 Total capital minimum ratio Annual Report 2015 71 .00% 5.50% 10.5} - - - - 154.463.728 (938.372 52.972.740 3.840 - 94.00% 10.068.00% 2.44% 9.533.584 (1.402.463.516 4.740 4.12% 8.092.438.3) Tier 2 capital (T2) after regulatory adjustments Tier 2 capital recognized for capital adequacy Portion of Additional Tier 1 capital recognized in Tier 2 capital Total Tier 2 capital admissible for capital adequacy 38 TOTAL CAPITAL (T1 + admissible T2) (21+37) 39 Total Risk Weighted Assets (RWA) {for details refer Note 41.25% 2.

where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) – Significant investments in the common stocks of banking.816) – – – – – – – – – – – – – – – – – (2.336) (4.Notes to the Unconsolidated Financial Statements For the year ended December 31.333) – (1. net of related tax liability) (1.111) .751) Defined-benefit pension fund net assets – Reciprocal cross holdings in CET1 capital instruments of banking.964) of which: significant investments in the common stocks of financial entities (233.126) – – (1.370) (72.663) National specific regulatory adjustments applied to CET1 capital – Investments in TFCs of other banks exceeding the prescribed limit – Any other deduction specified by SBP (mention details) – Adjustment to CET1 due to insufficient AT1 and Tier 2 to cover deductions (743.118) Amount exceeding 15% threshold (523.137) (46.263. financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) – Deferred Tax Assets arising from temporary differences (amount above 10% threshold.719. financial and insurance entities that are outside the scope of regulatory consolidation.301) of which: deferred tax assets arising from temporary differences (290.508.2.813. financial and insurance entities – Cash flow hedge reserve – Investment in own shares/ CET1 instruments – Securitization gain on sale – Capital shortfall of regulated subsidiaries – Deficit on account of revaluation from bank's holdings of fixed assets/ AFS – Investments in the capital instruments of banking.767) – – – (991.084. 2015 2015 2014 Amounts subject to Pre-Basel III treatment (Rupees in ‘000) Regulatory Adjustments and Additional Information 41.502) Total regulatory adjustments applied to CET1 (sum of 1 to 21) Annual Report 2015 (5.236.527.615) Shortfall in provisions against classified assets – Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) (1.1Common Equity Tier 1 capital: Regulatory adjustments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 72 Goodwill (net of related deferred tax liability) – All other intangibles (net of any associated deferred tax liability) (938.950) – – – (2.489) (119.219.677) – – – (787.

502) - (991.336) - - (743. financial and insurance entities that are outside the scope of regulatory consolidation 36 Total regulatory adjustment applied to T2 capital (sum of 31 to 35) - - - - - - (938. financial and insurance entities that are outside the scope of regulatory consolidation.880. during transitional period.502) - - (991.2.988) - (1. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 27 Significant investments in the capital instruments of banking. financial and insurance entities 26 Investments in the capital instruments of banking.336) (743.700) - 41. financial and insurance entities 33 Investment in own Tier 2 capital instrument 34 Investments in the capital instruments of banking. 2015 2015 2014 Amounts subject to Pre-Basel III treatment (Rupees in ‘000) Regulatory Adjustments and Additional Information 41.036) Annual Report 2015 73 . during transitional period. financial and insurance entities that are outside the scope of regulatory consolidation 28 Portion of deduction applied 50:50 to Tier 1 and Tier 2 capital based on pre-Basel III treatment which. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 35 Significant investments in the capital instruments issued by banking.2.Notes to the Unconsolidated Financial Statements For the year ended December 31.502) - (991. remain subject to deduction from additional Tier 1 capital 29 Adjustments to Additional Tier 1 due to insufficient Tier 2 to cover deductions 30 Total regulatory adjustment applied to AT1 capital (sum of 23 to 29) - - - - - - - - - - - - (743. remain subject to deduction from Tier 2 capital 32 Reciprocal cross holdings in Tier 2 instruments of banking.486) - - (888.2 Additional Tier 1 & Tier 1 Capital: regulatory adjustments 23 Investment in mutual funds exceeding the prescribed limit [SBP specific adjustment] 24 Investment in own AT1 capital instruments 25 Reciprocal cross holdings in Additional Tier 1 capital instruments of banking.336) (195. financial and insurance entities that are outside the scope of regulatory consolidation.3 Tier 2 Capital: regulatory adjustments 31 Portion of deduction applied 50:50 to Tier 1 and Tier 2 capital based on pre-Basel III treatment which.

803 – 7.668.336 – 495.982.599.982.856.3 Capital Structure Reconciliation 41.994 3.446 890.180 110.539.491 9.4Additional Information Risk Weighted Assets subject to pre-Basel III treatment 37 Risk weighted assets in respect of deduction items (which during the transitional period will be risk weighted subject to Pre-Basel III Treatment) (i) of which: deferred tax assets (ii) of which: Defined-benefit pension fund net assets (iii) of which: Recognized portion of investment in capital of banking.668 1.543 1.052.157.Notes to the Unconsolidated Financial Statements For the year ended December 31.086 1.2.749 7.496.086 1.180 110. 2015 2015 2014 (Rupees in ‘000) 41.446 890.157.052.318 Applicable caps on the inclusion of provisions in Tier 2 41 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap) 42 Cap on inclusion of provisions in Tier 2 under standardized approach 43 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap) 44 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach – – – – 41.979 10.3.372 94.994 3.856.543 1.645.222 – – – – – Amounts below the thresholds for deduction (before risk weighting) 38 Non-significant investments in the capital of other financial entities 39 Significant investments in the common stock of financial entities 40 Deferred tax assets arising from temporary differences (net of related tax liability) – 991.235.1 As per published financial statements 2015 Assets 74 Under regulatory scope of consolidation 2015 (Rupees in ‘000) Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments (including assets held for sale) Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 10.512 Annual Report 2015 .044 98.489.848 154.086.491 9.318 94.539.077 777.496.512 243.372 154.668.979 Total assets 243.222 7.086.044 98.803 4.749 7.645.599. financial and insurance entities where holding is more than 10% of the issued common share capital of the entity 4. financial and insurance entities where holding is less than 10% of the issued common share capital of the entity (iv) of which: Recognized portion of investment in capital of banking.489.

180 - - a - - b c - - d e Annual Report 2015 75 .380 226.132 17.444.576.195.444.258.866 57.140.044 98.356.Notes to the Unconsolidated Financial Statements For the year ended December 31.044 98.195.496.258.3.132 243.195.013 Total liabilities 226.463.894 4.052.2 17.052.496.195.205) – 78. AT1.645. financial and insurance entities exceeding regulatory threshold of which: Mutual Funds exceeding regulatory threshold of which: reciprocal crossholding of capital instrument (separate for CET1.889 997.866 Total equity Total liabilities & equity 41.889 997.676.216 85.645.856.599.086 1.856.599.180 10.013 2.463.512 243.741 130.543 1.216 85. T2) of which: others (mention details) 10.894 4.086 1.516 – – 3.205) – 78.140.582 (41.576. financial and insurance entities exceeding 10% threshold of which: significant capital investments in the capital instruments issued by banking.512 As per published financial statements 2015 Under regulatory scope of consolidation Reference 2015 (Rupees in ‘000) Assets Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments of which: Non-significant capital investments in the capital instruments of banking.356.676.582 (41.543 1.741 130.516 – – 3. 2015 As per published Under regulatory financial statements scope of consolidation 2015 2015 (Rupees in ‘000) Liabilities & Equity Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 2.380 Share capital / Head office capital account Reserves Unappropriated/Unremitted profit/(losses) Minority Interest Surplus on revaluation of assets 57.

258.446 48.741 130.767.582 (41.872 7.491 890.195.749 154.840 - Total liabilities & Equity 243.889 997.539.582 997.979 243.444.157.356.205) 78.994 110.195.676.446 48.491 9.512 243.372 3.013 2.Notes to the Unconsolidated Financial Statements For the year ended December 31.496.491 890.463.516 – 3.894 4.512 5.496.576.086.496.512 76 Annual Report 2015 k k j k l m n o p q r s t u v w x y z aa ab .195.582 (41.889 57.668.258.582 997.668.380 Share capital of which: amount eligible for CET1 of which: amount eligible for AT1 Reserves of which: portion eligible for inclusion in CET1(provide breakup) of which: portion eligible for inclusion in Tier 2 Unappropriated profit/ (losses) Minority Interest of which: portion eligible for inclusion in CET1 of which: portion eligible for inclusion in AT1 of which: portion eligible for inclusion in Tier 2 Surplus on revaluation of assets of which: Revaluation reserves on Property of which: Unrealized Gains/Losses on AFS In case of Deficit on revaluation (deduction from CET1) 57.979 243.840 - 57.463.195.866 52.894 4.372 3.889 997.216 85.512 i Liabilities & Equity Bills payable Borrowings Deposits and other accounts Sub-ordinated loans of which: eligible for inclusion in AT1 of which: eligible for inclusion in Tier 2 Liabilities against assets subject to finance lease Deferred tax liabilities of which: DTLs related to goodwill of which: DTLs related to intangible assets of which: DTLs related to defined pension fund net assets of which: other deferred tax liabilities Other liabilities 2.771.013 Total liabilities 226.258.216 85.516 – 4.741 130.380 226.576.516 – 3.771.877 3.872 7.877 h 5.994 154.491 9.496.444.749 f g 3.195.124 890.889 57.086.157.676.767. 2015 As per published Under regulatory financial statements scope of consolidation Reference 2015 2015 (Rupees in ‘000) Advances shortfall in provisions/ excess of total EL amount over eligible provisions under IRB general provisions reflected in Tier 2 capital Operating Fixed Assets of which: Intangibles Intangible assets of which: Intangibles Deferred Tax Assets of which: DTAs that rely on future profitability excluding those arising from temporary differences of which: DTAs arising from temporary differences exceeding regulatory threshold Other assets of which: Goodwill of which: Intangibles of which: Defined-benefit pension fund net assets Total assets 110.124 890.258.195.866 52.516 – 4.539.356.205) 78.

(ac) .028.663) – – – (i) Annual Report 2015 77 .061.118) (523.813.623) – 997.195.(ae) – (b) .205) – 17.582 – (41.(af) (1.Notes to the Unconsolidated Financial Statements For the year ended December 31. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the capital instruments issued by banking. 2015 Component of Source based regulatory capital on reference number reported by bank from step 2 (Rupees in ‘000) 1 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 Common Equity Tier 1 capital (CET1): Instruments and reserves Fully Paid-up Capital/ Capital deposited with SBP Balance in Share Premium Account Reserve for issue of Bonus Shares General/ Statutory Reserves Gain/(Losses) on derivatives held as Cash Flow Hedge Unappropriated/unremitted profits/ (losses) Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) CET 1 before Regulatory Adjustments 103.751) – – – – – – – (s) (u) (w) (x) (j) .(o) (k) .301) (290.769.964) (233.512 (45.527. financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) Deferred Tax Assets arising from temporary differences (amount above 10% threshold.(q)} * x% (d) (ab) – (a) . financial and insurance entities that are outside the scope of regulatory consolidation.(r)} * x% {(l) .266 Common Equity Tier 1 capital: Regulatory adjustments Goodwill (net of related deferred tax liability) All other intangibles (net of any associated deferred tax liability) Shortfall of provisions against classified assets Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) Defined-benefit pension fund net assets Reciprocal cross holdings in CET1 capital instruments Cash flow hedge reserve Investment in own shares/ CET1 instruments Securitization gain on sale Capital shortfall of regulated subsidiaries Deficit on account of revaluation from bank's holdings of fixed assets/ AFS Investments in the capital instruments of banking.615) – (1.(ad) .(p) (f) {(h) .316 – (938.533.508.502) (5.950) Common Equity Tier 1 11. net of related tax liability) Amount exceeding 15% threshold of which: significant investments in the common stocks of financial entities of which: deferred tax assets arising from temporary differences National specific regulatory adjustments applied to CET1 capital of which: Investment in TFCs of other banks exceeding the prescribed limit of which: Any other deduction specified by SBP (mention details) Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions Total regulatory adjustments applied to CET1 (sum of 9 to 29) (743.

840 - (z) (g) portion of (aa) .502) 11.516 (n) 154. financial and insurance entities that are outside the scope of regulatory consolidation.195.372 52. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the capital instruments issued by banking. 2015 Component of regulatory capital reported by bank Source based on reference number from step 2 (Rupees in ‘000) Additional Tier 1 (AT 1) Capital 31 32 33 34 35 36 Qualifying Additional Tier-1 instruments plus any related share premium of which: Classified as equity of which: Classified as liabilities Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties (amount allowed in group AT 1) of which: instrument issued by subsidiaries subject to phase out AT1 before regulatory adjustments - (t) (m) (y) Additional Tier 1 Capital: regulatory adjustments 37 44 45 46 Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment) Investment in own AT1 capital instruments Reciprocal cross holdings in Additional Tier 1 capital instruments Investments in the capital instruments of banking.502) (743.316 Tier 2 Capital 48 49 50 51 52 53 54 78 Qualifying Tier 2 capital instruments under Basel III plus any related share premium Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments) Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group tier 2) of which: instruments issued by subsidiaries subject to phase out General Provisions or general reserves for loan losses-up to maximum of 1.Notes to the Unconsolidated Financial Statements For the year ended December 31.25% of Credit Risk Weighted Assets Revaluation Reserves of which: Revaluation reserves on Property Annual Report 2015 4. remain subject to deduction from Tier 1 capital Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions Total of Regulatory Adjustment applied to AT1 capital Additional Tier 1 capital Additional Tier 1 capital recognized for capital adequacy 47 Tier 1 Capital (CET1 + admissible AT1) 38 39 40 41 42 43 - - (ac) - (ad) (743.533. during transitional period. financial and insurance entities that are outside the scope of regulatory consolidation Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which.

2015 Component of regulatory capital reported by bank Source based on reference number from step 2 (Rupees in ‘000) 55 56 57 of which: Unrealized Gains/Losses on AFS Foreign Exchange Translation Reserves Undisclosed/Other Reserves (if any) 58 T2 before regulatory adjustments 52.Notes to the Unconsolidated Financial Statements For the year ended December 31.740 3.463.056 Annual Report 2015 79 . remain subject to deduction from Tier 2 capital Reciprocal cross holdings in Tier 2 instruments Investment in own Tier 2 capital instrument Investments in the capital instruments of banking.988) (ae) (af) 3.740 3.997. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the capital instruments issued by banking.502) (195. financial and insurance entities that are outside the scope of regulatory consolidation Amount of Regulatory Adjustment applied to T2 capital 65 66 67 68 Tier 2 capital (T2) Tier 2 capital recognized for capital adequacy Excess Additional Tier 1 capital recognized in Tier 2 capital Total Tier 2 capital admissible for capital adequacy 60 61 62 63 TOTAL CAPITAL (T1 + admissible T2) (743. financial and insurance entities that are outside the scope of regulatory consolidation.463.740 14.463.486) - - (938.840 - (v) 4. during transitional period.728 Tier 2 Capital: regulatory adjustments 59 64 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which.402.

000 Liability . No.Notes to the Unconsolidated Financial Statements For the year ended December 31.Subordinated Loans 9 10 11 Original date of issuance 2003 19-June-2014 12 13 14 Perpetual or dated Original maturity date Issuer call subject to prior supervisory approval Perpetual Not applicable No Dated 19-June-2022 Yes (SBP's) 15 Optional call date.15 19 Existence of a dividend stopper Not applicable Not applicable 20 Fully discretionary.2 1 Issuer NIB Bank Limited NIB Bank Limited 2 Unique identifier (KSE Symbol) NIB NIBTFC2 3 Governing law(s) of the instrument Capital Market Laws Capital Market Laws Regulatory treatment 4 Transitional Basel III rules Common equity Tier 1 Tier 2 5 Post-transitional Basel III rules Common equity Tier 1 Tier 2 6 Eligible at solo/ group/ group & solo Group & standalone Group & standalone 7 Instrument type Ordinary Shares Subordinated Debt 8 Amount recognized in regulatory capital (Currency in PKR thousands) PKR 103.4 Main Features Template of Regulatory Capital Instruments Sr.028.195. Main Features Common Shares Instrument . fully and permanently convert the TFCs into common shares of the Bank and / or have them immediately written off (either partially or in full). if applicable Not applicable Not applicable 16 Coupons / dividends 80 17 Fixed or floating dividend/ coupon Not applicable Floating 18 Coupon rate and any related index/ benchmark Not applicable Six months KIBOR (Ask side)+1. SBP may at its option. partially discretionary or mandatory Fully discretionary Mandatory 21 Existence of step up or other incentive to redeem Not applicable Not applicable 22 Non cumulative or cumulative Not applicable Non cumulative 23 Convertible or non-convertible 24 If convertible. 2015 41. conversion trigger (s) Not applicable Upon the occurrence of a Point of Non-Viability PONV event as defined below. Annual Report 2015 . contingent call dates and redemption amount Not applicable Not applicable Subsequent call dates.916 Par value of instrument Accounting classification PKR 10 Shareholder equity PKR 5.512 PKR 4.

36 per share. No.Notes to the Unconsolidated Financial Statements For the year ended December 31. description of write-up mechanism Not applicable Not applicable Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) Not applicable Not applicable 36 Non-compliant transitioned features No No 37 If yes. specify instrument type convertible into Not applicable Shares If convertible. 27 If convertible. Main Features Common Shares Instrument . permanent or temporary Not applicable Not applicable 34 If temporary write-down. full or partial Not applicable Not applicable 33 If write-down. specify non-compliant features Not applicable Not applicable 29 35 Annual Report 2015 81 . mandatory or optional conversion Not applicable Mandatory 28 If convertible. write-down trigger(s) Not applicable Explained at 24 above 32 If write-down.2 25 If convertible. 2015 Sr. 2. specify issuer of instrument it converts into Not applicable NIB Bank Limited 30 Write-down feature Not applicable 31 If write-down. conversion rate Not applicable At a minimum conversion rate of Rs. fully or partially Not applicable As the case may be 26 If convertible.

323 12.696 2.442 66. plant and equipment and all other fixed assets Other assets Off-Balance Sheet Market related Non-market related 82 Annual Report 2015 5.174 552.754. Externally Imposed Capital Requirements In order to strengthen the solvency of Banks.992.86% respectively of its risk weighted exposure as at December 31.502.639 186. – to maintain a strong capital base so as to maintain investor. 2015 41.020.096.484 2.816 2.965 91.204.054.176 46.574 599.384.312.050 911.248 209.221.659 2.527. 103 billion and 11.Notes to the Unconsolidated Financial Statements For the year ended December 31. and – to protect the Bank against unexpected events.384 . – availability of adequate capital at a reasonable cost so as to enable the Bank to expand.206 23.957.659 48.178 23.261 4.752 380. 07 of 2009 dated April 15.170 295.466.981 3. 2009 has asked the Banks to raise their minimum paid up capital to Rs.301.799 18.536 79.718 492.740 5.018 2.459 55.222.725 687.868.496 9.741 5.038.249.854 7.230.593 24.921.161 61.097 9. – to safeguard the Bank's ability to continue as a going concern so that it can continue to provide adequate return to shareholders.486. 09 dated April 15.346.366 4.152 8.956 95. The Bank has complied with all externally imposed capital requirements as at year end.588 303. 2015. The paid up capital and CAR of the Bank stands at Rs. SBP through its BSD Circular No.520 82.159 25.621 2.924.177 4. 10 billion free of losses by the end of financial year 2013.128.505. depositor and market confidence and to sustain future development of the business. The capital requirements for the banking group as per the major risk categories should be indicated in the manner given below: Capital Requirements 2015 2014 Risk Weighted Assets 2015 2014 (Rupees in ‘000) Credit Risk Portfolios subject to Simple Approach On-Balance Sheet Corporate Sovereign Retail Banks Public Sector Entities Past Due Loans Claims against Residential Mortgage Investments in premises.226 420.423 663.875.846. 2009 has asked Banks to achieve the minimum Capital Adequacy Ratio (CAR) of 10% on standalone as well as on consolidated basis latest by December 31.610 614.832 1.755 462.673 68. Bank's capital management seeks: – to comply with the capital requirements set by the regulators.475 38.798 1.5 Capital Adequacy Objectives of Managing Capital Capital Management aims to ensure that there is sufficient capital to meet the capital requirements of the Bank as determined by the underlying business strategy and the minimum regulatory requirements of the SBP.982 13.705 91. 2010. SBP vide BSD Circular No.

586 565.186 46.841 126.12% 11.623 488.00% 7.309.355 652.003 10.819 334.634 565.473 8.00% 41. External Credit Assessment Institutions (ECAIs) recommended by the SBP.Notes to the Unconsolidated Financial Statements For the year ended December 31.280 10. and Moody`s are used.44% 11.736 466.371.855 5.044 27.656.643. Standard and Poor`s.386 Market Risk Capital Requirement for portfolios subject to Standardized Approach Interest rate risk Equity position risk etc.580 62. Types of exposure for which each agency is used in the year ended December 31.831 12.254 1.309 121.00% 9. 2015 Capital Requirements 2015 2014 Risk Weighted Assets 2015 2014 (Rupees in ‘000) Equity Exposure Risk in the Banking Book Listed Unlisted 33. namely Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited (JCRVIS) are used.692.338 5.200 40.6 Credit Risk: subject to Standardised Approach The Bank has adopted Standardized approach for calculation of capital charge against credit risk in line with SBP's requirements.713.635 61.00% 8.50% 10.068.604 2.221.354 617. Total Market Risk Operational Risk Capital Requirement for operational risks 2015 Capital Adequacy Ratio CET1 to total RWA Tier-1 capital to total RWA Total capital to total RWA 2014 Required Actual Required Actual 6.731 81.769.814 128.106. Foreign exchange risk etc.138 6.162 48.045. ratings assigned by Fitch. For claims on foreign entities.652.50% 7.12% 9. 2015 are as follows: PACRA JCR-VIS Other (S&P / Moody's / Fitch) Corporate ✓ ✓ – Banks ✓ ✓ ✓ Sovereigns – – ✓ Public Sector Enterprises ✓ ✓ – Exposures Annual Report 2015 83 .44% 8.222.700 416.86% 5. For domestic claims.320 107.137 1.881 12.369 11.926 6.000 405.946 12.189 41.524.800 625.414 630.595 12.802 103.00% 10.438.104.

Notes to the Unconsolidated Financial Statements For the year ended December 31.036 2. 2017.001 10.063. general guarantees for indebtness etc.664.539. 2015 the Bank’s Leverage ratio stood at 3.107 93.276 – – – – 135.045 4. Letter of Credits) Lending of securities or posting of securities as collaterals Undrawn committed facilities (which are not cancellable) Unconditionally cancellable commitments Commitments in respect of operating leases Commitments for the acquisition of operating fixed assets Other commitments 6.749 135.001 – – – – 335.668.856.376 335.76% (minimum requirement of 3.498 – 15.646 59.496.567. Banks are required to disclose the leverage ratio from December 31.206 2. 2018.160.599.462. During this period the final calibration.301.530 10. 2013 to December 31.1) 84 2014 (Rupees in ‘000) Annual Report 2015 .255 2.159 193.944.994 3.180 110. The Basel III leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the denominator).287.e.675 587.996.303.139.446 9.861 22.913. Acceptances.272 17.370 10.e.543.001 Off-Balance Sheet Items excluding derivatives Direct Credit Substitutes (i. 06 of 2013 has issued instructions regarding implementation of parallel run of leverage ratio reporting and its components from December 31.699. and any further adjustments to the definition.044 98.0% ).599 34.941 23.052.086.512 8. Guarantees) Trade-related Contingent Liabilities (i.e.138. with a view to set the leverage ratio as a separate capital standard on December 31.543 1.958 – – 135.428 7.7 The State Bank of Pakistan (SBP) through its BPRD Circular No. will be completed. with this ratio expressed as a percentage: Leverage Ratio = Tier 1 capital (after related deductions) Total Exposure As at December 31.1) Other assets Total Assets (A) 10.194 243. 2015 On-Balance Sheet Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments (including assets held for sale) Advances Operating fixed assets Deferred tax assets Financial Derivatives (A.643 Total Off-Balance Sheet Items excluding Derivatives (B) 63.229. 2015 41.618.543.019.086 1.559. 2015.499 64.) Performance-related Contingent Liabilities (i.276 – – 335.529 – 4.276 7.645.032 – – – – 153.752 Derivatives (On-Balance Sheet) Interest Rate Equity Foreign Exchange & gold Precious Metals (except gold) Commodities Credit Derivatives (protection brought & sold) Any other derivatives Total Derivatives (A.302.

The Bank’s risk management policies are established to identify and analyze the risks faced by the Bank.316 10. The main objective of the CRC is to ensure effective and proactive management of Credit Risk throughout the Bank in accordance with the Risk Management Framework and related Risk Policies and Procedures. which meets six times a calendar year. The BRMC relies on three management committees namely the Asset Liability Committee (“ALCO”). Asset Liability Committee (“ALCO”) The ALCO functions as the top operational unit for managing the statement of financial position within the performance/risk parameters laid down by the BOD.76% 3. Annual Report 2015 85 .323 328.973. The BOD sets forth the vision and strategy of NIB and has entrusted the monitoring to the Board’s Risk Management Committee (“BRMC”). implemented and are not in conflict with any of the applicable laws and regulations. Terms and references of BRMC are documented and duly approved by the BOD and broadly includes oversight responsibility at the highest level under the Risk Management Governance Framework. to set standard and appropriate risk limits and controls to ensure quality of portfolio and credit process. to identify. Terms and references of the CRC. Risk management policies are reviewed annually to reflect changes in economic environment. To oversee implementation of credit risk related policies and procedures relevant to all business units through review of standard MIS decks.839 11.839 328. liability constraints.334 258.219.Off Balance Sheet Items (Derivatives having negative fair value are also included) Interest Rate Equity Foreign Exchange & gold Precious Metals (except gold) Commodities Credit Derivatives (protection sold and bought)* Other derivatives Total Derivatives (C) Tier-1 Capital Total Exposures (sum of A. To address this risk.Notes to the Unconsolidated Financial Statements For the year ended December 31.549 3.323 189. Findings of the BRMC are escalated to the BOD.533. the Credit Risk Committee (“CRC”) and the Operational Risk Committee (“ORC”). 2015 2015 Commitments in respect of Derivatives .96% RISK MANAGEMENT The risk management framework of NIB is approved by the Board of Directors (“BOD”) and implemented by the senior management. Its objective is to derive the most appropriate strategy for NIB in terms of mix of assets & liabilities given future expectations and potential consequence of interest rate movements. and foreign currency exchange exposure and capital adequacy. To ensure that all activities are in compliance with the Prudential Regulations and also with the policies and controls established by the relevant units of the Bank through periodic review of business issues highlighted in internal / external audit reports and SBP Inspection Report. broadly include the following: To ensure that all relevant risk policies of the Bank are developed. Credit Risk Committee (CRC) is established under the leadership of the Chief Risk Officer (CRO) of the Bank and membership comprises the President and Senior Management of the Bank.359. market conditions and products offerings. Credit Risk Committee (“CRC”) In our normal business activities there is a need to manage effectively potential credit risk. which is an oversight committee and meets at least quarterly.B and C) Leverage Ratio 42 2014 (Rupees in ‘000) 189. manage and monitor risks.784 306.

To ensure any areas of potential overlap with another entity or Risk Control Area. repurchase agreements. securities borrowing and lending transactions. To address this risk. Operational Risk Committee (“ORC”) In our normal business activities there is a need to effectively manage potential risk arising out of banking operation of the Bank. Business or Function are notified to the affected entity Risk Control Owner. which enable it to perform efficiently and effectively.Notes to the Unconsolidated Financial Statements For the year ended December 31. and that risk control and risk origination decisions are properly informed. Rupee devaluation. To develop. through KRIs and appropriate management action as per defined thresholds. 2015 To review stress testing on portfolio considering the major factors like interest rate sensitivity. securities or other assets as contractually agreed. and five Risk Heads. recovery of remedial accounts. in accordance with Operational Risk policies and procedures. To review Ops Loss Data (OLD) and take proactive measures to reduce Ops Losses. NIB’s main credit exposure arises from the risk of failure by a client or counterparty to meet its contractual obligations. and compliant with the Bank's standards and applicable regulations. policies and processes. Commercial/SME and Consumer Finance businesses and Market. Risk Management Organization at NIB The Chief Risk Officer (“CRO”) is responsible for enterprise wide risk management and implementation of the overall risk management framework of NIB. Operational Risk Committee (ORC) is established under the leadership of the President of the Bank and membership comprises the CRO and Senior Management of the Bank. 42. risk issues or themes that come to the Committee's attention. Bank’s policies and Central Bank regulations in their respective domains. To monitor all material Operational Risk exposures and key external trends. inflation. responsible for Corporate. The CRO is supported by a Chief Operating Officer . The main objective of the ORC is to ensure effective and proactive management of Operational Risk throughout the Bank in accordance with the Risk Management Framework and related Risk Policies and Procedures. the CRO has to ensure that the risk organisation structure of NIB is equipped with the best people. In this respect. and contingent liabilities. maintain and review a consolidated MIS of key operational risks in the Bank in the form of Risk & Control Assessment Matrix. Portfolio Risk and Country Risk Assessment. Liquidity and Operational Risks respectively and they are responsible for ensuring the implementation of NIB’s risk framework. The risks are inherent in loans and bills receivable from non-bank customers. Business or Function Head. commitments to lend.Risk responsible for Risk Policies & Procedures.1 Credit Risk Credit risk is the risk that a counterparty or customer will be unable to pay amounts in full when due. To direct appropriate action in response to material events. broadly include the following: To ensure operational risk identification and measurement covers all activities/products/processes of the Bank. fluctuation in oil prices and /or global meltdown etc. Terms and references of the ORC. Trade Finance. and to assess: - quality of the portfolio. which meets on a monthly basis. To review the credit portfolio. primarily through Key Risk Indicators. Settlement risk is the risk of loss due to the failure of an entity to honor its obligations to deliver cash. Clean risk at liquidation or settlement risk occurs when items of agreed upon original equal value are not 86 Annual Report 2015 . variance analysis of actual with plan and forecasts portfolio exceptions To advise business where activities are not aligned with control requirements or risk appetite and to recommend Risk Policies.

amounts receivable under finance leases. maintaining an appropriate credit administration. any initiating unit has to have formal recommendation by the Relationship Manager. and formal commitments where the counterparty is resident in a country other than where the assets are recorded. Insights into the major factors influencing customer attrition and product cancellation. Annual Report 2015 87 . Cross-border assets comprise loans and advances. Typically the duration is intra-day. an indigenously developed rating system is followed. measurement and monitoring process and ensuring adequate controls. NIB follows the guidelines issued by the State Bank of Pakistan. Cross-border risk is the risk that we will be unable to obtain payment from our customers or third parties on their contractual obligations as a result of certain actions taken by foreign governments. Submission of regulatory returns pertaining to reporting of NIB’s portfolio. The essence here is that the credit proposal must not be left to the sole judgment of one person – rather. Corporate Credit Risk Management also approves exposure to Financial Institutions. his/her Team Leader and Regional Head/Corporate Banking Head/Group Head.Notes to the Unconsolidated Financial Statements For the year ended December 31. NIB manages credit risk through: – – – – Accurate and detailed information about the borrower. Credit and collections treated as a highly people-intensive business. financial performance and repayment capacity. service and operation of the company. acceptances. This rating system is being continuously fine tuned to address regulatory and global benchmarks. In this situation 100% of the principal amount is at risk. trade and other bills. production. All credit approvals are accorded by the Credit Officers/Senior Credit Officers in the Risk Management Group. overnight/over weekend. or in some situations even longer. The risk may be larger than 100% if in addition there was an adverse price fluctuation between the contract price and the market price. For risk management reporting purposes the Bank considers and consolidates all elements of credit risk exposures. certificates of deposit and other negotiable paper. The concept of “three initial system” is very much in existence in NIB. The CAD Head has direct reporting line to the CRO. For the monitoring of the credit quality of the financial assets not carried at fair value through profit or loss. Credit quality is determined based on three pillars: namely business prospect. Further. in order to measure credit risk. chiefly relating to convertibility and transferability of foreign currency. cash flows. NIB has established an appropriate credit risk environment which is operating under a sound credit-granting process. interest-bearing deposits with other banks. 2015 simultaneously exchanged between counterparties and/or when items are released without knowledge that countervalue items have been received by the Bank. Financial assets carried at fair value through profit or losses are not assessed for impairment since the measure of fair value reflects their credit qualities. the application of minds must be diverse and independent of each other. The risk is that we deliver but do not receive delivery. Businesses have no credit approving authority. Based upon regional considerations and availability of Credit Talent. NIB monitors exposure to credit risk through: Post-disbursement maintenance of accounts is done through Credit Administration Department (“CAD”) reporting into a CAD Head. Impaired financial assets Impaired financial assets including loans and debt instruments are those which NIB determines that it is probable that it will not be able to collect all principal and interest due according to the contractual terms of the agreement(s) underlying the financial assets. and Establishment of acceptable risk levels. There is a proper credit delegation matrix for review and approving credit applications. Cross-border assets also include exposures to local residents denominated in currencies other than the local currency. NIB has established limits for cross-border exposure and manages exposures within these limits.

01 54.1 Segments by class of business 2015 Advances (Gross) Contingencies and Commitments Deposits (Rupees in‘000) Percent (Rupees in‘000) Percent (Rupees in‘000) Percent Agriculture.171 1.459.874 1.61 283.951 0.77 969.103 3.00 130.20 Cement.256.981.186.741 1.22 Chemicals and Pharmaceuticals 3.56 4.14 386.90 3.42 10.590 2.001.444.1 Segmental Information 42.22 Construction 1.166 3. 42.195 1. Glass and Ceramics 1.028.011 0.74 4.049.913.800 2.600.67 704.107 6.047 1.91 790.11 1.248.408 1.350.314.428 2.22 29.89 6.256.69 152.314 6.97 – – – 2.41 Others 4.165 4.00 Annual Report 2015 .753 2.14 2.933.19 2.930 8.02 Automobile and Transportation Equipment 855.34 38.888 1.847 0.308.67 4.791.54 Electronics and Electrical Appliances Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing 0.190.574.529.693.075.601 39.052.Notes to the Unconsolidated Financial Statements For the year ended December 31.328 7.229.06 – 4.612.423 5.510 – 3. Writing off a loan in no way implies that the Bank has given up its claim on a borrower and does not impact the Bank’s ability to legally collect written off credits from the customer(s).356 3.320.925 0.383 3.724.014.515 3.256 0.017 4.619.482 0.161 7.646.80 5.926.00 75.894 100.196 0.758 2. 2015 Write offs NIB’s Write off Policy is laid out in line with the SBP rules.612 0.429 100.031 9.1.420.642 0.182.346 0.17 17.94 147.627.73 14.1.163.926 0.84 28.51 Textile 34.263.449.07 Engineering 5.90 36.801 0.94 7.41 5.231.258 10.408.54 5.05 179.74 422. Sanitary 88 407.01 – – 24.88 10.88 3.075.996 3.56 12.013.655 13.035.443.032 0.079 3. Storage and Communication 14.25 135.71 Power.886 2.224 1.115.86 – 46.223.683 4.753 1.313.08 2.299 0.99 Transport.29 1.88 731.98 209.250 2.06 Exports / Imports 1.40 Services 1.1.061. Forestry.28 Sugar 4. Gas.30 447.38 Financial 2.21 2.02 2.481.05 4.047 25.227 7.429 0.260.449 0. Water.523 0.04 10.024 100.399. Hunting and Fishing 194.43 7.394 10.29 2.577 21.410 0.21 3.840 0.48 3.63 901.508 0.956 27.58 1.446 4.103 0.840 6. All credit write offs are approved under the approved delegation matrix.770 Wholesale and Retail Trade 3.287 0.24 3.668 0.77 2.

50 Chemicals and Pharmaceuticals 4.361.498 0.521.07 100.980 10.587 1.578 6.652.757 Annual Report 2015 7.666 2.30 50.028 98.55 8.823.63 100.68 4.400 0.02 6.02 2.095 3.18 4.295 2.060.11 Cement.803 Services 1.452 100.52 9.968 105.00 89 .888 75.053.780.90 906.564 117.949 0.74 2.167 Contingencies and Commitments Deposits Percent (Rupees in‘000) Percent (Rupees in‘000) Percent 13.757 100.55 6.234 0.396.70 772.425 3.53 595.497 3.74 2.050 0.446 7.109.419.34 100.71 Construction 1.252.25 1.881 0.07 2.407 2.260.672 3.915 2.75 4.00 7.012 93.635.317. Forestry.193 0.998 0.957.06 280.473.022.236.11 Automobile and Transportation Equipment 1. 2015 2014 Advances (Gross) Contingencies and Commitments Deposits (Rupees in‘000) Percent (Rupees in‘000) Percent (Rupees in‘000) Percent Agriculture.652 5.05 5.974.441 2. Water. Hunting and Fishing 40.666.13 42.75 3.609.398.024 Contingencies and Commitments Deposits Percent (Rupees in‘000) Percent (Rupees in‘000) Percent 26.93 73.05 4.167 100.492.09 46.819 3.Notes to the Unconsolidated Financial Statements For the year ended December 31.2 Segment by sector 2015 Advances (Gross) (Rupees in‘000) Public / Government Private 36.466 0.467 4.845 0.980 100.349 4.411 0.84 718.028.971 32.644.705 0.484.421.73 Others 5.33 117.127.187 8.67 3.644.85 429.00 2014 Advances (Gross) (Rupees in‘000) Public / Government Private 15.31 16.109.595 0.76 Textile 36.85 825.298.169.996 135. Sanitary 9.13 48.00 108.03 2.678.10 839.524 111.04 111.194.444 0.994 4.975 0.305 108.678 2.968 3.451 7.25 804.73 145.772.26 6.558 30.909 8.556.54 266.399 1.11 7.442 8.673 0.325 1.36 Sugar 2.686.66 85.338 1.81 700.219.550.934.96 89.650.714.071.51 276.260 1.00 8.563 0.48 1.826.627.00 19.50 9.00 42.220 0.314 0.78 2.506 0.655 1.370 130.25 6.22 100.00 105. Glass and Ceramics 2.1.06 4.54 Transport.371.526 7.78 92.048.133 0.1.10 1.894 14.065 20.920 6.816.029 6.742 8.662.31 1.26 984.465.597 3.040.374 17.00 11.482 2.805 0.588.02 11.784.77 34.957.24 – – 67.224.65 120.11 86.27 – – 2.531.129.89 100.205.51 315.492 0.810 0. Gas.429 9.39 Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing 79.216 1.211.83 3.294.37 90.603 102.402.206.04 10.90 390.33 10. Storage and Communication Wholesale and Retail Trade 2.86 8.00 124.433 0.350.541 68.794 2.389 2.409.68 364.04 100.346 1.444.95 Power.746 4.836 0.

184 _ 23.1.665 2.4 Details of non-performing advances and specific provisions by sector Public / Government Private 90 Annual Report 2015 _ _ 28.829 527. Glass and Ceramics 609.457 1.885.412 13.179 635.184 29.017.015.320 Chemicals and Pharmaceuticals 598.651 130.658 _ 29.855 Paper and Printing 593.171 540.485 961.663 Services 902. Storage and Communication Wholesale and Retail Trade Others 815.993 209.894 492.842 846.884 969.154.092 1.123 761.755 Oil and Gas 12.173.542 – 119.905 8.373 534.716 366.921 415.863.908 704.205 2.842 734.514 377.717 2.885.198 581.443 Electronics and Electrical Appliances Engineering Financial Food and Beverages 23.658 28.204.370 1.976 Transport.118 2.224 24.618 Sugar 645.985 2.255 125.450 649.224 24.378 2.3 Details of non-performing advances and specific provisions by class of business segment Agriculture.017.173.200 406.282.224 24.849.816 Power.1.1. Water.017.662 101.516 Cement.841 1.525 394.327 643.292.070 2.139 93.826 616.962 366.813 23.104 638.637.287.983 563.321 176.184 23.099 2.432 581.808 16.409 28.867 11.884 503.625 762.529.204.118 600.813 2015 2014 Classified Specific Classified Specific Advances Provisions Advances Provisions Held Held (Rupees in ‘000) 42.107 12.638 25.885.173.020 Mining and Quarrying 23. 2015 2015 Classified Specific Advances Provisions Held Classified Advances 2014 Specific Provisions Held (Rupees in ‘000) 42.234.204.764 504.815 26.639 505.973 Construction 418.207.300 21. Gas.098 593.941. Hunting and Fishing _ _ _ – Automobile and Transportation Equipment 715.969 Individuals 695.Notes to the Unconsolidated Financial Statements For the year ended December 31.203 Footwear and Leather Garments 272. Forestry.168 585.450 717.042 1. Sanitary 379.366 _ 162.776 213.1.634.763.335.405 Textile 13.099.393.813 .908 535.658 29.

958 Market Risk Market risk refers to the potential loss that an entity may be exposed to due to market volatility.260.094 108.512 17.496. Interest rate risk The principal risk to which NIB’s portfolios are exposed is the risk of losses from fluctuations in the future cash flows or fair values of financial instruments because of a change in market interest rates.957. Market risk arises from all positions in financial instruments held by the Bank which exposes the Bank to market risk factors namely interest rates.5 Geographical Segment Analysis Pakistan 4. Bank has adopted a market risk management structure that commensurate with its size and the nature of its business activities and facilitates effective management oversight and execution of market risk management and control processes. Interest rate risk is measured through DV01 and VaR.608 243.429 15.132 75. foreign exchange (“FX”) rates and equity prices. – Foreign Exchange Exposure Limit – Equity Exposure Limit – FX Tenor mismatch – DV01 – VaR NIB also applies a Value-at-Risk (VaR) methodology to assess the market risk positions held.655. Following are the regulatory and internal guidelines monitored by Market & Liquidity Risk Unit (MLRU). Currently Bank’s risk appetite for market risk is a combination of notional and sensitivity based limits. It is important for the Bank to put in place an effective market risk management framework to manage its market risk exposures.567.430) 193.1 Foreign Exchange Risk NIB has set the following objectives for managing the inherent risk on foreign currency exposures: Maximize profitability with minimum risk by keeping the exposure at desirable levels in view of strict compliance of regulatory/international standards and the Bank's internal guidelines.026. 2015 2015 Profit / (loss) before taxation Total assets employed Net assets employed Contingencies and Commitments (Rupees in ‘000) 42.1.2 (84. Annual Report 2015 91 .1. Currently NIB is using historical simulation model for calculating VaR.Notes to the Unconsolidated Financial Statements For the year ended December 31.140.757 2014 Pakistan 42.2. 42. which are being adopted from regulator and followed vigorously.

996.458.258 1.610 255. by anticipating changes/shocks of -30%.092 168.043 (3.510 1.380 2.356.318) 867. such as compliance of credit limit.232 10.734.Notes to the Unconsolidated Financial Statements For the year ended December 31.617 193. -40% and -50% on the current price of shares within a portfolio.979) 697 2.979 – (8. VaR and FX tenor gaps to monitor FX risk.628 26.092. Further.057.813.132 2014 Assets Liabilities Off Balance sheet items Net foreign currency exposure (Rupees in ‘000) Pakistani Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 42.330 1. review of marked to market portfolio etc.358 2.262 1.097 460.958 177.294) – 16.379.490 54. monitoring of foreign exchange exposure limit.387 15.389.655. NIB uses tools such as Foreign Exchange Exposure Limit (FEEL).669 140.243 (86.358.745 923 13.2.129 1. 2015 Manage appropriate forward mismatch gaps.864 (146.512 226.076 6.276 2.413 76.184.462 836 13.177 4.104) 1.511) (1. NIB takes steps to ensure that foreign currency exposures adhere to regulatory or international standards and NIB’s internal guidelines. NIB conducts stress testing analysis over the equity portfolio.567.077 _ _ _ _ 15.948 (14.171) 805.496.568 1.814 (4.199 344.418 8.420.664 6.408.2 184.650 9.140. 2015 Assets Off Balance sheet items Liabilities Net foreign currency exposure (Rupees in ‘000) Pakistani Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 232.015 34 1.765.094 Equity price risk and fixed income rate risk Equity price risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of NIB.554 243.898. NIB reviews new products to ensure that market risk aspects are properly quantified and mitigated.513 331.525) 15.723 26.707 17. 92 Annual Report 2015 .297 423. thereby monitoring the effects of the predicted changes in the structure of shares portfolio on the Capital Adequacy Ratio (“CAR”).555 218.627.755.752 1.007.912.815 37. Usage of different tools to manage the inherent risk of product and market.

255 – 8.155.399.921 71.943 18.924.58% 130.363.581 – – 3.651.118.440 10.599.324 188 – – 188 – – 6.820.734 5.599.401 1.195.034 Non Financial Net Assets Off-balance sheet financial instruments 71.942 – – 527.573.586 29.331.525. 2015 93 .441) – – – (26.004.187 – – 1.48% Bills payable 2.117 3.187 2.459) (2.470 463.015.603.902 2.449.933 – 30.293) 4.847.671 – Upto 1 Month 1.924.601 – – 29.797) (43.694 – 54.2.843 23.924.951.438 – – 4.276.242.535.467.191 – – Over 1 to 2 Years 702.570 – – – Over 2 to 3 Years Exposed to Yield / Interest risk 2015 Details of the interest rate profile of the Bank based on the earlier of contractual repricing or maturity date is as follows: 42.110 – 68.50% Lendings to financial institutions – 0.108 5.883.670.195.404 – – – Over 3 to 5 Years 21.466.052.087.501 – – – – (4.227 – – 11.69% 110.365 17.576.619 82.402.196.187 - – – – (Rupees in ‘000) Over 6 Months to 1 Year 3.770 – – – Over 1 to 3 Months On-balance sheet gap – 9.502 – – – Over 5 to 10 Years 21.371 1.487) (26.sale 2.865.954 2.261.800.141.997.516 – – 1.945.574.253.792 1.050 – 32.419.231 7.954.743.444.857.216 14.601 – – 1.501 – – 564.226.112.816 – – – 2.732) (5.226.586 – – – 1.573.355.898.901.441) 40.273) 50.412.044.049.854 – 10.545.811 – – 8.796.888) (53.216 391.461 487.809.346 20.052.415 10.528 Foreign exchange contracts .343 1.847 – 3.870 – – 85.627 11.865.865.132 Total Net Assets 8.027 (2.324 (1.873 3.645.870 4.304 42.945.074 – 1.668.182.791.453 10.501 – – – 564.676.212) – 64.086 10.167.994 Assets held for sale Advances 1.purchase Foreign exchange contracts .863.935 Total Yield / Interest Rate Risk Sensitivity Gap Cumulative Yield / Interest Rate Risk Sensitivity Gap 1.216 223.741 – 6.044 36.585) Off-balance sheet gap 3.732) 48.250.264.867.793.576.368.139 188.501 – – – – – – 564.418.253.247 49.942 – – – – – – 10.543 Total 93.731 27.3 Mismatch of Interest Rate Sensitive Assets and Liabilities 10.228 224.902) (51.540 Annual Report 2015 (53.61% Investments 1.758.884.608.543 Non-interest Over bearing financial 10 Years instruments Notes to the Unconsolidated Financial Statements For the year ended December 31.345.898.509 7.439 – 4.824 11.932.428.874.731 61.215) 43.034 11.685) (38.112.38% Sub-ordinated loans Other liabilities 4.942 – – – 10.945.044 1.512 – – 1.964.362 – – 1.047.894 Deposits and other accounts 85.567.329.195.525.980.499 Borrowings Liabilities – Other assets 3.516 (38.2.324 – – – 6.109 – – – Over 3 to 6 Months (1.511 6.954 564.118 18.816 546 – – 546 – – 2.601.05% Balances with other banks Cash and balances with treasury banks Assets On-balance sheet financial instruments Effective Yield / Interest rate – (494.034 – 36.140.611 7.196.

481 – – – – Non-interest Over bearing financial 10 Years instruments Notes to the Unconsolidated Financial Statements For the year ended December 31.547.236.699.459 – 562.536.236.418.457.658 9.508) – – 8.926 28.425.151.916.86% Investments 7.740.195 1.655.372.123.914 24.525 – – 5.386.000.496 176.739.851.591 6.829.585.481.790 1.415 3.076.575.020 6.081) Off-balance sheet financial instruments 22.78% Deposits and other accounts Other liabilities – 9.035 – – 51.634 – – – 24.373.768 – – 853.842 – – 3.250 – 17.438 2.730.428 8.926 4.438 – 34.536.094 Total Net Assets 6.691 – – 9.204 4.613.153.894 2.000 – 55.109.468 5.534 92.651.779.020.386.261.425 4.031) 622.295 – – – Over 3 to 5 Years Total Yield / Interest Rate Risk Sensitivity Gap Off-balance sheet gap 705.151 – – 5.956.788 (5.452 22.703) 44.012.327 9.573.860.997 – – 5.705 8.170.849.158 9.952.621.28% Sub-ordinated loans 105.534.772 – 4.422 – – 4.756 3.834.113.464) 5.338 (11.675 0.531 23.350 3.448. 2015 .063.426) – – – 622.350 2.sale 5.661 Non Financial Net Assets 10.409 – – 17.720.692.105.795.543 2.278 7.689.01% Assets held for sale Advances 54.723 – Upto 1 Month On-balance sheet gap – 4.791.634 – – – – – – 24.275 – – 6.974.108.750.353 – – – Over 2 to 3 Years Cumulative Yield / Interest Rate Risk Sensitivity Gap 12.364 4.91% Lendings to financial institutions 587.536.421.673.675 – – – 19.030 900.567) (67.230 40.664.740.060 3.181 22.15% – Total Balances with other banks Cash and balances with treasury banks Assets On-balance sheet financial instruments Effective Yield / Interest rate 2014 Exposed to Yield / Interest risk 18.784) (17.562 – – – Over 3 to 6 Months 14.21% Bills payable 10.646 9.434) (14.437.454 – 11.195 8.297 – – – (Rupees in ‘000) Over 1 to 2 Years (6.204 22.020 5.798 497.113.297 24.782) (27.468.purchase Foreign exchange contracts .634 – – 685.259) 5.762 (4.94 Annual Report 2015 93.372.863.192 – 25.611.917.377.241.703) (16.103 – – – Over 5 to 10 Years 39.315 – – 1.481 (25.243 969.812.426) – – – – – – 622.740.528 13.395 (6.675.122) (23.129 7.08% Borrowings Liabilities Other assets – 10.611.501 – – 962.952.340) – – (61.170.036 – – – 8.091.063.842 – – 28.481 (25.197.528 169.122 2.349 – – Over 1 to 3 Months (6.032.515.876 – 59.013) 44.702 578.151 – – 2.550.889.255 – – – Over 6 Months to 1 Year 436.132.273.437.525 – – 125.262.112.438 11.310 (18.996.668 Foreign exchange contracts .860.201 15.481 – – 622.383.197.980 62.270.720) 5.460 5.788 527 – – 527 – – 8.921 – – (61.060 – 705.036.

543 1.1 Maturities of Assets and Liabilities .761 – – – 10.600 102.380 3.704 – – – 2.050 9.951 2.597.308 – – – 71.660 27.731 Other assets 7.695 8.177 – – – 5.245 18.086.187.648 273.314 – 162.509 – 1.506 25.280.402 – – – 687.539.288 6.093.212.488 – 7.483.697 3.942 770.713 – – – 20.631.939 6.349 – 761.292.699.218 632.599.765.Maintaining stable and diversified sources of funding. 2015 95 . current accounts and saving accounts are shown as having a maturity upto one month.995.769.046 – 123.851 235.648.380 Upto 1 Month Assets Cash and balances with treasury banks 10.840.463.042.805.471 4. Financial Instruments: Disclosures.266 78.458.356.359 27.026.038 53.3.117 840 235.155.086 Lendings to financial institutions 1.512 997.979 – – – 2.053.140.086 1.690 – 3.140.118 2.839 – – 546 1.741 130.net 9.069 2.868 336.376) 226. Liquidity management is important as the ultimate cost of a lack of liquidity is being out of business.216 85.749 Assets held for sale 3.850 15.599.854 160.344.676.132 176.911 15.516 3.751 317.078.095 – – – 49.869 23.680 245.512 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities 10.547.216 19.118.044 1.899 4. – Over 2 to 3 Years Controlling the cash flow mismatch between on and off balance sheet assets and liabilities through MCO.132 103.803.182.610 – 3.002 – 3.354 161. as these flows normally occur over a longer period of time.452.894 4.363.488 190.112.490 Over 5 to 10 Years 4.028.430.668.214 840 575.333 9.048 – 21. NIB maintains its liquidity by keeping a level of liquid assets in such amount which is considered sufficient to anticipate payment of customers' deposits.788 276.136 2. either does not have enough financial resources to meet its obligation and commitments as they fall due or can secure funds at an excessive cost.645.582 (45.449.099.680 16.576.039.449 Advances 110.195.486 (96.491 Deferred tax assets .759 1.377 60.613 13.312 Over 3 to 6 Months 41.407. Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets . Liquidity risk is due to the difference between the Bank’s assets and liabilities generally known as mismatches.994 Operating fixed assets 3.543 Balances with other banks 1.866 17.815.023 128.205) 17.685.444. However.339 51 – – 1.216 71.997. even when the Bank is solvent.644.450.366 1.719 – 746.569.854.432 10.812 468.601 1.064 385.112.547.195.657. based on contractual maturities.544.735 9.659.052. management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote.618 Over 1 to 3 Months 12. Consequently.515 – 25. Liquidity risk is defined as the risk that a Bank.405 11. Basel standards and best practices.Based on contractual maturity of the Assets and Liabilities of the Bank 42.386 54.547 4.013 80.379.646.633.790 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 13.572 58.103 13.806 17.979 Total 2015 Over 3 to 5 Years 5-Day stress testing on Bank’s balance sheet carried out on daily basis assuming 50% run offs in CASA (Current and Saving) deposits over 5 days.110 10.447 4.645.092 – 137. Liquidity Risk 42.496.078.413.457 7. – The Bank manages its liquidity risk through The liquidity risk policy is formulated keeping in view of the SBP's guidelines on risk management.300.743.761 10.681. all demand assets and liabilities such as running finance.286 4.446 Intangible assets 890.623) (41.087 Above 10 Years The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7.net Net assets 2.867.290. and Stress testing on portfolio as required by local regulator – – – Annual Report 2015 17.611 64. based on historical behaviour.061.117 57.414 28.588 81.496.571 – – – 1.385 30.157.052. Ensuring the Bank has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.730.732 18.045 256.731 1.3 Notes to the Unconsolidated Financial Statements For the year ended December 31.110 243.044 Investments 95.576.547 – – – – 10.804 109.792 – – 188 3.910.614 – – 29.316.

353 – – – 5.197.733 (55.376 9.646 59.912.395 1.313 8.585 234.188.051.555) 16.139 – – – 23.655.372.524 27.709 – – – 7.107 93.152 1.528 62.860 53.995 319.286 – 4.325 1.net Other assets 130.315 153.216.784 26.527 – – 2.655.842 1.476 Upto 1 Month 8.466.197.769.138.314 134.184 310.675 587.352.203 7.518.680 11.811.129 Above 10 Years Notes to the Unconsolidated Financial Statements For the year ended December 31.950 17.139.864 15.473.485 4.195 3.823 – – 28.934.746) 177.821.958 2.182 224.623) (43.658 – 1.918.565 80.820 – – – – 8.782.086 368.246 75.269 190.685 259.567.550 412.206 3.966 41.131.827 3.287 – 1.843 Over 3 to 5 Years 23.851.094 15.528.878.028 86.395 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 13.028.367 366.116 – – 27.655.402.512 474.438.043.740.117) 2.363 2.869 24.617.613 160.017.250 8.359 27.199 103.533 4.709 – – – 5.349 1.956.582 704.550.946. 2015 .454 5.826 56.999 – 9.305 313.867 117.297 518.026.675 587.680 220.789 – – – 3.697 8.654.294.275.595 Over 1 to 3 Months (3.053.947 736.321.695 11.789 2.582 15.228.428 6.427 5.167 253.267 8.543 840 7.142 7.944 Over 2 to 3 Years 17.873 31.063.451.517 – – – 5.834.874 2.677 1.785 10.286 2.985 249.530 1.114.740.239 1.96 Annual Report 2015 Shareholders' equity Surplus on revaluation of assets .213.123 (45.301 13.389.063.528 40.815 – – 969.196 58.979.415.876 4.996.586.434.699.186.980 4.375 Total (340.592 5.377 352.664.700 238.937.606 – 162.750.467.675.811 10.327 840 455.944.241.836 15.736.094 14.370 – 9.987 193.836 Over 5 to 10 Years 8.059) 18.262.428 7.109.358 Over 3 to 6 Months 2014 310.183.272.036 2.655.692.878.895 1.730.403.799 11.259.894 105.820 8.234.931 – 850.593.836 – – 527 3.net Share capital Reserves Discount on issue of shares Accumulated loss Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets .796 64.234.940 – – – 6.150 – 2.

053.851 235.286 33.680 16.312 Over 3 to 6 Months 2015 50.261 1.073 6.547 4.812 468. Non-core and Core balances are equally distributed in time buckets from 1 month till 1 year and from 2 years till furtherest available time bucket respectively.751 317.340) 226.939 6.952 – 3.704.023 128.380 10.802 840 235.045 256.631 – – – 49.942 770.Based on historical pattern of the Assets and Liabilities of the Bank Notes to the Unconsolidated Financial Statements For the year ended December 31.157.112.net Assets held for sale Other assets Total Over 1 to 3 Months 42.759 1.571 4.488 190.245 18.052.572 58.885 – 162.069.093.050 17.013 10.078.112.547.512 2.390 160.195.366 1.765.674.087 Above 10 Years In order to work out non-core balances.685.496.743.124) 37.491 9.064.599.445. 2015 Annual Report 2015 97 .3.869 31.052.333 9.468 (53.761 Over 3 to 5 Years (22.432 28.038 78.981 – – – 20.026. non-core balances for Running Finance are placed in 1-month bucket and core balances are equally distributed in buckets 2-months till 1-year.633.2 Maturities of Assets and Liabilities .390.130.815.457 7.758.078.450.793.506 37.413.356.899 16.258.220 – 13.362.543 1.002 – 3.731 1.657.071 – 1.475.308 – – – 71.449.441.292.731.086 1.426.660 27.761 – – – 10.731 7.086 1.386 54.543 1.868 336.799.117 57.614.631.422.136 2.957 13.118 27.349 – 761.555 60.061.911 15.029 21.681.618 16.288 6.155.680 245.net Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets .064 385.227.648 273. Core balances are defined as those which are expected to remain in our books for a longer period and thus placed in longer time buckets.576.402 – – – 687.046 – 123.668.316.444.256 27.110 15.588 81.979 Upto 1 Month 6.050 – 7.735 2.515 – 25.632.329 – 6.072 109.044 95.017 6.471 4.890.556 840 575.882 – – – 2.216 71.490 Over 5 to 10 Years 4.140.832 24.600 14.233. volatility is calculated using standard deviation and scaled for computing respective tenor volatility.463.339 51 – – 1.132 2.951 35.699. Whereas.187.216 85.645.701 – 746.767.128 243.516 3.449 110.847.997.805.446 890.811.205) 17.676.483.539.512 997.132 103.354 161.681.645.177 – – – 5.623) (41.741 130.042.867.88.028.979 – – – 2.582 (45.611 19.432 10. Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets .697 3.695 23.068.749 3. Non-contractual assets and liabilities have been profiled by using Core / Non-core Balance Methodology.048 – 21.378.806 Over 2 to 3 Years 4.599.994 3.790 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 6.069 2.854.086. Similarly.363.266 78.769.195.316 1.643.380 17.099.375 – 3.440.554 – 6.940.894 4.576.616 3.218 632.379.850 23.547 – – – – 10.280.571 – – – 1.613 13.359 27.866 17.140.092 – 137. non-core balances are considered volatile and expected to attrite from our books in the short run.044 1.290.

173.263.680 11.267 8.139.427 5.811 17.333 134.451.550 412.018 – 2.094 2.358 Over 3 to 6 Months 8.834.294.655.278.206 3.545.375 Total 2.412 5.613 160.321 4.944 Over 2 to 3 Years 7.395 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 2014 8.528.788) 35.269 190.730.985 249.197.228.782.655.428 7.454 18.301 13.439 (19.695 11.528 62.592 5.294.677 23.268.750.851.876 9.123 (45.671.196 18.521) 177.836 23.155.655.476 Upto 1 Month 8.117) 14.685 259.675 587.138.036.057.297 518.927 – 162.305 313.550.944.623) (43.086 368.697 8.377 352.359 27.582 26.377 – – 5.286 30.995 319.139.275.680 220.261 840 455.167 253.843 Over 3 to 5 Years (7.287 – 1.947 736.028 11.615 – 1.980 4.396 1.327 – 9.990.820 8.740.528 40.629 5.184 310.664.036 2.498.894 105.438.017.565 80.895 1.789.800 24.98 Annual Report 2015 Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets .796 64.839 56.250 14.996.376 9.349 1.979.183.197.270.646 59.524 27.467.195 3.352 153.811.769.958 2.net Other assets 55.864 15.946.025.820 – – – – 8.918 193.434.912.567.129 Above 10 Years Notes to the Unconsolidated Financial Statements For the year ended December 31.390 – – – 5.026 24.878.785 10.063.789 – – – 3.860 53.055.968.766 10.466.367.286 2.512 474.net Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets .530 1.501 20.595 Over 1 to 3 Months 1.585 234.367 366.199 15.246 35.109.080 – – 5.389.160.675 587.107 93.053.799 6.934.709 – – – 5.867 117.368.784 26.216.740.705 1.933 – 9.950 17. 2015 .485 4.139 – – – 23.114.699.937.188.095.313 30.700 238.634 3.522.411 840 7.063.789 2.026.142 18.655.540.403.601.675.428 6.637 – 850.133.827 3.874 2.582 704.204.213.372 21.352.028.356.272.709 – – – 7.828 – – 969.878.094 103.532.395 1.959 – – – 6.836 Over 5 to 10 Years 8.216.553.517 – – – 5.943 – – 10.239 1.116 – – 27.859.363 2.586.325 1.

Businesses are now more focused on their relevant Operational Risk issues. A sound internal governance structure enhances the effectiveness of NIB’s Operational Risk Management and is accomplished at the enterprise level through formal oversight by the Board. Bokhari Teo Cheng San. The ORC reports operational risk activities to the Board Risk Management Committee. 43 DATE OF AUTHORIZATION FOR ISSUE These unconsolidated financial statements were authorized for issue on February 24.Notes to the Unconsolidated Financial Statements For the year ended December 31. 2016 by the Board of Directors of the Bank. Treasury and Retail. operational loss incidents and testing of controls are now captured in the Operational Risk System. the CRO and risk management committees aligned to the Bank’s overall risk governance framework and practices. people and systems or from external events. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner. integrated management of operational risk across the Bank. BCP being part of Bank’s control activity is now under the umbrella of Operational Risk Management Unit and fortifies the Integrated Risk Management Group. Atif R. Key Risk Indicators. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 99 . Operational Risk System has been rolled out Bank-wide. 2015 42. and – at the business and enterprise control function levels to address operational risk in revenue generating and non-revenue generating units. the Operational Risk Unit is now further strengthened after formation of Business Operational Risk Committees for Corporate and Investment Banking. Within the Integrated Risk Management Group.4 Operational Risk Management The Bank defines operational risk as the risk of loss resulting from inadequate or failed internal processes. The Operational Risk Committee (ORC) oversees the processes for sound operational risk management and also serves as an escalation point for critical operational risk matters within the Bank. NIB approaches operational risk management from two perspectives to best manage operational risk within the structure of the Bank: – at the enterprise level to provide independent.

603 2.895 41.485 127. KARACHI.999 12.760 27. C M FABRICS CLIMAXABAD GT ROAD.206 46. 10 SHAHZAD MARKET. KARACHI.165 34.856 21.TRADERS 5 A FEROZPUR ROAD.178 39. RAHWALI NEAR GLOBEL MARRIAGE HALL GUJRANWALA. NORTH KARACHI.632 2. 2 SHAIKH DANISH SALEEM Name DANISH ENTERPRISES 1ST FLOOR.S.603 2.776 9. GUJRANWALA. CM ENGINEERING 121 FEROZPURE ROAD.606 21.292 1. SMALL INDUSTRIAL ESTATE.047 29.096 11. SIALKOT. 10-GARDEN ROAD.142 3. 1/124.190 2. ISMAT ADIL (III) SHIRAZ KHAN TAHIR HASSAN KHAN MUHAMMAD MURAD SHAHIKH (I) ABDUL QAYYUM KAMBOH (II) ZEESHAN QAYYUM (III) ARSALAN QAYYUM MUHAMMAD AYYYUB ABDUL QAYYUM KAMBOH (I) MOHAMMAD ZAHID AKHTAR (II) ASHRAF BIBI MUHAMMAD QASIM ANSARI MUHAMMAD ASLAM STATUS INTERNATIONAL CO. P.C. COLOUR LINE 210-2. IQBAL & SONS SHOP NO.C-1/2.603 2.156 16.289 19.040 5.561 Principal 2.971 1. 3 Annual Report 2015 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (I) SAJJAD AZEEM (II) SHOUKAT AZIM (III) FOUZIL AZIM RAZA HUSSAIN SALEEM HUSSAIN SIDDIQUI (I) MUHAMMAD ISHTIQ LONE (II) FAIQA LONE (III) WERNER MUCHA (IV) PETER MUCHA (I) HABIBULLAH KHAN (II) ZAFARULLH KHAN (III) FAROOQ HABIB HAMID ALI DAHAR (I) SHAKIL WAHID (II) ASAD IQBAL SHEIKH (III) ANWAR IQBAL (I) MOHAMMAD ADIL KHAN (II) MRS. SITE.398 38. NEAR GALAXY SHOPPING. N.148 - - - - - - - - - - - - - - - - - - Accrued Mark-up Others 12. TEXTILE INDUSTRIES MUHAMMD NAEEM ANSARI PLOT NO. ENGRAM TECHNOLOGIES INTERNATIONAL GULISTAN HOUSE PLAZA 2 EAST BLUE AREA.690 2.561 Principal written-off 2. SECOR 6-B.028 10. ISLAMABAD.989 2. LAHORE.399 3. LAHORE.343 4.No. LAHORE. NORTH KARACHI.787 256 3.415 5. DASKA ROAD.606 21.971 1. GC-50.156 16.E.10/142. AL HAROON BUILDING. GULBERG-III.716 26. (I) 42301-1276411-9 (II) 42301-3029410-5 (III) 42301-0105748-3 42201-5601747-9 42101-1384969-9 (I) 34603-1374583-9 (II) 34603-7989816-8 (III) FOREIGN DIRECTOR (IV) FOREGIN DIRECTOR (I) 35201-7921526-3 (II) 271-54-209044 (III) 270-87-302561 41303-3167785-5 (I) 35202-9185186-7 (II) 35202-2945217-5 (III) 35202-2403830-1 (I) 42401-4229617-9 (II) 42401-8807261-6 (III) 42401-2451658-7 61101-0285844-3 41303-1528615-9 (I) 34101-2599076-7 (II) 35202-0795513-7 (III) 35202-1859666-5 34101-2782780-7 34101-2599076-7 (I) 35201-9564939-7 (II) 35201-9796078-6 42101-1419984-1 42101-1419982-1 35202-8164974-3 42201-0642903-7 NIC No. 2015 3. LAHORE.856 22. HASSAN ALI CENTRE.821 1.377 5.M.034 800 20.500 700 6.709 Total (Rupees in '000) Annexure . Z. BESIDE FAROOQ MASJID.344 3.292 1.709 Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.663 166.343 10.399 3.A JINNAH ROAD.807 57. TRAMONDI SPORTS PVT LTD 12-K.821 1.699 4.M. LAHORE. NEW MUBARAK.165 34.292 1.A. KALORO COLONY. KARACHI. KARACHI.760 27.900 3. GULBAHAR-2. KARACHI.H. C M WOOLLEN MILLS GT ROAD.254 76.056 23.714 56. BLOCK-3. MUHAMMAD MURAD SHEIKH A-165.142 3. RAZA ENTERPRISES 165-C.999 728 2.787 296 3. Name & Address of borrower 1 S.818 3.281 4.918 - - - - - - 2.206 82.034 800 8. SECTOR 6-B. AREA DEFENCE. FIRST FLOOR.254 39.603 4. INDUSTRIAL AREA.132 2..600 39. CANTT HYDERABAD FAROOQ HABIB TEXTILE 74-B-3.1 .344 3.716 26.600 - 37.606 46.606 43. NEW SHAHALAM MARKET.716 26.918 - 2.500 700 5.998 30.165 34. SANITARY MARKET.100 ANSARI TEXTILE INDUSTRIES PLOT NO.900 3.999 7.563 73. KARACHI. KARACHI.760 27. Name of Individuals / partners / directors (I) MUHAMMAD AZEEM (II) MUHAMMAD AZEEM (III) SAJJAD AZIM ABDUL HUSSAIN ALAM IQBAL SIDDIQUI (I) MUHAMMAD SIDDIQUE LONE (II) SALEEM DAR (III) MUCHA (IV) MUCHA (I) MIAN AKBER ALI (II) MIAN AKBER ALI (III) MIAN HABIBULLAH KHAN MUHAMMAD NAWAZ DAHAR (I) MIAN ABDUL WAHID (II) SHEIKH IQBAL AHMED (III) IQBAL AHMED (I) MUHAMMAD FAZAL KHAN (II) MUHAMMAD ADIL (III) MUHAMMAD ADIL KHAN RAFIQ AHMED KHAN PEER BAKSH SHEIKH (I) MIRAJ DIN (II) ABDUL QAYYUM (III) ABDUL QAYYUM HAJI MIRAJ DIN HAJI MIRAJ DIN (I) MUHAMMAD MASKEEN AKHTAR (II) MUHAMMAD MASKEEN AKHTAR QASIM ANSARI MOHAMMAD ANSARI CHAUDHARY BARKAT ALI MUHAMMAD SALEEM Father’s / Husband’s Name 9.289 49.895 71. AZEEM FOOD INDUSTRIES SUIT-D.148 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - Other Financial Relief 6.814 9. COOPERATIVE HOUSING SOCIETY. NATIONAL GASES LIMITED F 74/A. M.142 5. KARACHI.898 2. AL NAWAZ FILLING STATION HOUSE NO.818 3.

ABDUL WALI MUHAMMAD MOTEN (I) NAVEED AKBAR (II) MIAN FAISAL RABBANI (III) RIZWAN IQBAL JAURA (I) HABIB AHMED (II) ALI NAWAZ HAMEED (III) IRFAN SHAUKAT (IV) ABDUL WAHEED (I) ASHRAF JAVED CH. MAJEED AHMED BAWANY (LATE) (II) MR. 147.926 17. KORANGI INDUSTRIAL AREA. BARADARI ROAD.31/5. OLD SECRETARIATE. ST NO 1 CHUNGI NO 14. MULTAN. 4A ST-5. * SHEIKH MUHAMMAD ALI SHEIKH MUHAMMAD ALI H NO B-3. ISLAMABAD.AZIZ (V) MR.055 41.599 83. * ADNAN HAIDER ZAIDI HOUSE NO.891 47.209 24. * SHOUKAT HAYAT CHAH WALLAN WALA. SHAHDRAH. OPPOSITE SIKANDARABAD SHUJAABAD.273 24. MUZAFFARABAD. 20 ZAHID HAFEEZ Name 82203-8139122-8 91509-0153735-7 36302-3041570-1 42301-8745743-5 35102-4588082-1 42101-4478204-5 36304-4484183-3 35201-7664360-7 35202-7445329-7 42401-1608296-7 33100-4505165-1 (I) 35200-6692835-9 (II) 35201-6995826-9 (III) 34201-0394731-5 (I) 34101-2492999-3 (II) 34101-2702005-7 (III) 34101-5126500-5 (IV) 34101-3072062-7 (I) 34603-7352449-3 (II) 34603-6373232-4 (I) 34603-1624769-0 (II) 34603-9457984-2 (I) 42101-0146694-9 (II) 42000-6524376-9 (III) 42101-3688321-8 35202-7059649-7 NIC No. BEGUM KOT.301 526 546 1. BUILDCORE ENGINEERING (PVT) LTD 22-KM. YOUNUS ABDUL MAJEED (III) MR.177 1. JARANWALA. SECTOR 1 A-4. 2/4 & 2/5. MUMTAZABAD ROAD.016 - - - - - - - - - - - - - - - - - - Accrued Mark-up Others 504 1. * MUHAMMAD MANSOOR SADIQ MUHAMMAD MANSOOR SADIQ P-525 A-BLOCK.963 50. REHMAN SCHEME. SECTOR-17. BAWANY INDUSTRIES LTD 2ND FLOOR. * SYED RAZA HUSSAIN HOUSE NO 30.096 Total - - - - - - - - - - - 588 1.899 Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.257 - - - Principal written-off 115 201 149 54 120 95 74 121 62 81 158 131.634 37.963 50. BABA RONAK WALI GALI.000 900 574 628 450 514 1.883 Principal 14 6 9 22 28 18 36 34 34 60 109 186. GT ROAD.771 25.331 211.184 - - - - - - Other Financial Relief (Rupees in '000) Annexure .257 54.326 58. 1ST FLOOR.022 511 737 539 575 1.222 25.467 47. KARACHI. 2015 473 976 873 457 617 444 501 1.216 69.618 39. SIALKOT SHAUKAT SOAP AND GHEE IND PVT LTD THERI SANSI OPPOSITE RAILWAY STATION. M. RAJA ZAFFAR IQBAL RIAZ HUSSAIN ZAIDI MUNSHI SHEIKH MOHAMMAD ASHRAF MIAN MUHAMMAD SARWAR SALAH UD DIN KHAN ALLAH YAR SYED NAZIR HUSSAIN KAZMI MAQSOOD AHMED SAADAATULLAH KHALIL SHEIKH ABDUL SADIQ (I) GHULAM RASOOL CH (II) MIAN GHULAM RABBANI (III) MUHAMMAD IQBAL JAURA (I) ABDUL HAMEED (II) ABDUL HAMEED (III) SHAUKAT ALI SHEIKH (IV) WAHEED (I) MUHAMMAD SHAFI CH.335 560 606 1. ZAFAR ALI ROAD.379 .248 196. LAHORE. 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 * Policy write-off customers SHAFY SPORTS WEAR HOUSE N0. STREET NO 5. SHAUKAT COLONY. * KASHIF MAQSOOD HOUSE NO 3.221 - - - 32. MOANGHOPIR ROAD. (II) FARKHANDA BEGUM CH.781 148. SECTOR-J. KARACHI.184 19. NORTH KARACHI.101 15.827 25.926 17.422 567 625 1. GHAFFAR A.891 92.131. * NAVEED UD DIN KHAN R-191.598 29. MUHAMMAD HANIF A. * TAHIR MEHMOOD HOUSE NO. KARACHI * MUHAMMAD ASHRAF H NO 146/70. A. PHASE-II.954 26.209 24. LAHORE. LAHORE. NEAR AMERICAN INTERNATIONAL SCHOOL MAIN CANAL ROAD. DHA. SIALKOT CANTT 21 ADNAN HAIDER ZAIDI MUHAMMAD ASHRAF TAHIR MEHMOOD NAVEED UD DIN KHAN SHOUKAT HAYAT SYED RAZA HUSSAIN KASHIF MAQSOOD ASAD ABBAS (I) MR. MANSOOR VALLIANI (IV) MR. (I) NARGIS MUSTAFA (II) NAZIA ALI (I) AHSANULLAH KHAN (II) AHSANULLAH KHAN (III) PARVEEN KHAN AMJAD AHSAN INFOTECH (PRIVATE) LTD PLOT NO. DHA. MOHALLAH ABU BAKER BLOCK NEW GARDEN TOWN Name & Address of borrower 19 S. WEST WHARF ROAD.028 117.771 57.096 Interest/ Mark-up written-off 19.1 101 .634 47. Name of Individuals / partners / directors ZAHID HAFEEZ HOUSE NO. (II) CHAUDHARY (I) GHULAM MUSTAFA CH (II) ZULFIQAR ALI CH (I) HABIBULLAH KHAN (II) AHSANULLAH KHAN (III) AHSANULLAH KHAN CHAUDHARY ABDUL HAFEEZ Father’s / Husband’s Name 490 1. PACCA GARHA WAZIRABAD ROAD. GHULAM MUHAMMADABAD FAISALABAD * ASAD ABBAS S-3/1. DISTT MULTAN. SATTAR (VI) MR. AL-WADI SOCIETY 7 MEAL ISLAMABAD * SAMIA HAMEED SAMIA HAMEED TANDLI POST OFFICE. NEAR KABARI MARKET. HARBANSPURA.201 92.5. FEROZEPUR ROAD OF 4-KM ROOHI NALA. MODERN COLONEY. GHAZI VILLAS.301 505 544 1.No. M.006 909 596 656 468 550 1. EAST STREET PHASE-I. STREET NO 5.Annual Report 2015 BELOS CLOTHING PVT SIALKOT-3. HAKIMSONS BUILDING.

1 . SS-2-B. 42301-2214239-5 42301-8890584-9 42301-0506657-3 42201-0960852-5 61101-8834871-9 35202-0827638-7 42301-5493047-7 35202-8761872-9 35202-5801286-1 42301-8662521-7 42401-8080664-7 36302-3696633-9 35202-3486582-9 42501-5593364-5 42301-7971411-1 42000-0397007-9 17301-4950446-3 37405-4084078-7 NIC No. Name of Individuals / partners / directors GHULAM HAIDER HASHIM WAHEED UDDIN SIDDIQUI FAKHAR UDDIN SYED MUSTAFA HUSSAIN CHAUDARY NASRULLAH KHAN ABDUL REMAN NASIR MUHAMMAD DIN SHEIKH REHMAT ALI MOHAMMAD RAFIQ MUHAMMAD RABAN MANZOOR ELAHI MUHAMMAD AZEEM MIR WALI SHAH ABID ISMAIL MUHAMMAD JAWED AKHTER SYED AMIR UL MULK SOHNA KHAN Father’s / Husband’s Name 908 444 236 223 146 250 153 315 388 156 949 569 903 1.S. NEW NAQSHBAND COLONY. D-42 BLOCK-5. 4 SECTOR E-7. MAZONG. KARACHI. * MUHAMMAD BILAL HOUSE NO-3 STREET NO. 2015 458 204 193 223 146 250 153 315 388 156 499 546 854 1. 404. STREET NO. BLOCK-2. Name & Address of borrower 37 S. ASLAM GHULAM HAIDER FLAT # C-23. DHA.180 13 12 17 4 13 42 11 - - - - - - - - - - - - - - - - - - Accrued Mark-up Others 1. KARACHI. LANE-1.286 550 493 1. BOHRI GALI. CLIFTON. KARACHI. GULSHAN-E-IQBAL. MUHAMMAD SOHAIL FLAT NO. MULTAN. NEAR BILAL MASJID. SADI PARK.27. KHAYABAN-E-SHAMSHIR.17.H.166 780 Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. SHAHDRA TOWN. P. TARIQ ROAD. AREA KAHKASHAN. KARACHI.No. STREET NO. * SALEEM MANZOOR H NO 98/XX-1. MUHAMMAD ISHTIAQ MUHAMMAD ISHTIAQ HOUSE NO.. IMRAN WAHEED UDDIN SIDDIQUI HOUSE NO. GARDEN WEST. 2 RAWALPINDI. 11-12 MOHALLAH SHOE MARKET SHAHLAM GATE. 4TH FLOOR. 753. * AHSAN ULLAH SHAH SHIRAZI HOUSE NO. CENTRAL COMMERCIAL AREA. SAEEDABAD. LAHORE RIZWAN PLOT 12-C. 224. MAIN SUNSET BOULEVARD. PANKHA LINE CITY COURT. AFTAB AHMAD AFTAB AHMAD HOUSE 4. 3RD FLOOR.167 529 473 964 704 Principal written-off 214 358 332 335 429 260 369 330 593 713 1.E.C. KARACHI IMRAN RAZA HOUSE NO. STREET 32.161 106 77 125 93 95 79 78 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - Other Financial Relief 672 562 525 558 575 510 522 645 981 869 1. 45/2. DHA. PHASE-2.292 622 568 1. LAHORE ZAKA ULLAH KHAN HOUSE DHOKE KARAM SHAH. KARACHI.124 769 Principal 214 358 332 336 429 260 373 338 593 713 1. FLAT 2-C. AL-RAUF HOMES CHAMAN STREET GURUMANDAR. 32. PESHAWAR. 05. SALMA VILLAGE HOUSING SOCIETY. KARACHI HUSSAINI FLAT B-1. PHASE-7 HAYATABAD. KHAYABAN-E-RAHAT. KARACHI.660 652 931 1. PHASE-VI. SAIFEE NAGAR. MOHALLAH TARIQ ABAD INDUS ROAD NO. 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 * Policy write-off customers * MUHAMMAD RAHEEL JAWED MUHAMMAD RAHEEL JAWED H NO A -129. 38 Name * KHADIM HUSSAIN KHADIM HUSSAIN C.102 Annual Report 2015 * TABISH ISMAIL TABISH ISMAIL H NO. DAKHAN CHAK NAURANG EH AND DISTT. A-MUMTAZ ROAD YOUSAF STREET PAK I TATAHI SAMNABAD LAHORE. ASLAM PARK.B QUATER 6. NASHTAR ROAD. RUBY STREET. LAHORE. MUHAMMAD SAGHIR AHMED HOUSE # 739. PAHSE-V. 1ST FLOOR. DHA. 39 ASLAM GHULAM HAIDER IMRAN WAHEED UDDIN SIDDIQUI HUSSAINI SYED MEHDI HUSSAIN ZAKA ULLAH KHAN RIZWAN IMRAN RAZA MUHAMMAD SOHAIL MUHAMMAD SAGHIR AHMED SALEEM MANZOOR MUHAMMAD BILAL AHSAN ULLAH SHAH SHAHI MULK * SHAHI MULK HOUSE NO. CHAKWAL SYED MEHDI HUSSAIN PLOT NO. BLOCK 13-C. BALDIA TOWN UC-5. STREET 4. KARACHI.303 554 506 1. FLAT NO.129 582 915 1.043 782 Total (Rupees in '000) Annexure .122 802 568 559 575 510 526 653 981 869 2.

5. FAISALABAD. BHITTAI COLONY. NAGAN CHOWRANGI. 4. BARKAT ALI BARKAT ALI HOUSE NO. SHEIKH RUSTAM ALI UMER DIN ROAD ELAHI PARK. KARACHI. ROAD-A BIHAR COLONY. KARACHI. MUHAMMAD SHOAIB BUTT HOUSE NO. MUHAMMAD SHAKEEL HOUSE# 80. KARACHI MUHAMMAD AKRAM RAHEEL MUHAMMAD AKRAM RAHEEL HOUSE NO. SAMANABAD. CLIFTON. SECTOR 35/B. MUHAMMAD YASEEN KHAN HOUSE NO. 3. LIAQUATABAD. IMRAN KHAN HOUSE # 108/2. NAVEL COLONY. STREET NO.5. KORANGI NO. BHUTTO NAGAR.350 1. AREA 35/B. NORTH NAZIMABAD TOWN. KORANGI NO. MUHAMMAD TANVEER STREET NO. OUT FALL ROAD USMAN ROAD. SECTOR-35/B. STREET 13.066 569 570 844 588 714 538 688 2. SECTOR-B. RAJAB ALI SANNA RAJAB ALI SANNA SEA VIEW APPARTMENT FF-2. KORANGI NO. KARACHI.020 646 513 520 537 685 1. KACHA LAWRENCE ROAD. 1/413.582 548 949 510 530 Total (Rupees in '000) Annexure . BLOCK # 56. MUHAMMAD YOUSAF KHAN MUHAMMAD YOUSAF KHAN HOUSE NO.No. 177. K-283. LAHORE. KORANGI. KARACHI. BLOCK 5/6. 69 MOHAMMAD AMIR MUHAMMAD YASEEN KHAN ABDUL AZIZ MOHAMMAD ANIS KHAN MUHAMMAD SHAKEEL MUHAMMAD RASHID KHAN YOUSUF ZAI MUHAMMAD TANVEER MUHAMMAD KHALID MUHAMMAD KHALID HOUSE NO. 4. MOHAMMAD ANIS KHAN HOUSE NO. KARACHI. 201.LAHORE.36. KARACHI MUHAMMAD RASHID KHAN YOUSUF ZAI CC-27. 53. 4 KARACHI. CHAKWAL 57 58 59 60 61 62 63 64 65 66 67 68 MUHAMMAD SHAFIQ HOUSE NO 414. F BLOCK. WASSAN PURA. 16. 1ST FLOOR. Name of Individuals / partners / directors MUHAMMAD REHAN NEAR JAMIA MEHMOODIA GOJRA ROAD MOHALLAH CHAUDHRY COLONY JHANG SADAR. MISRI KHAN MUHAMMAD AKBAR BUTT MUHAMMAD IDREES AKBAR ALI SANNA MUHAMMAD BASHIR MUHAMMAD QASIM ANSARI SHEIKH SHARIF HUSSAIN BARKAT ULLAH MUHAMMAD UMAR KHAN ABDULLAH MUHAMMAD NAFOOS KHAN LAL KHAN MUHAMMAD ISMAIL MALIK MUHAMMAD KHURSHEED KHAN YOUSUF ZAI BASHEER AHMED MUHAMMAD ASHRAF MUHAMMAD SIDDIQ MUHAMMAD AHMED QURESHI MUHAMMAD YAQOOB CHAUDHRY ASLAM MEHMOOD Father’s / Husband’s Name 375 809 660 381 508 477 603 672 236 449 630 349 474 229 326 175 117 359 267 291 Principal 348 541 451 323 272 316 390 817 386 354 614 404 425 386 540 2. HAWKSBAY ROAD MARI POOR.504 438 691 379 310 - - - - - - - - - - - - - - - - - - - - Accrued Mark-up Others 723 1. MILLAT ROAD. KARACHI. KARACHI.244 753 899 615 866 2.1 103 . Name & Address of borrower 55 S. LAHORE. BAHADURABAD.1/1013. 70 71 72 73 74 Annual Report 2015 IMRAN KHAN MUHAMMAD SHOAIB BUTT FAYYAZ HAIDER MUHAMMAD SHAFIQ HAYAT MUHAMMAD HAYAT MUHAMMAD HOUSE # K-512. 2015 185 479 195 186 248 227 295 249 183 216 230 184 289 154 220 175 119 258 131 239 Principal written-off 348 541 451 327 272 310 390 817 386 354 614 404 425 384 468 2.679 555 1. SANAT NAGAR.489 622 803 1.MUHAMMAD LAIQUE MUHAMMAD LAIQUE HOUSE NO. CHISHTIAN DHOKOO ROAD.407 429 691 379 291 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - - - Other Financial Relief 533 1. MANZOOR COLONY MEHMOODABAD. JHANG. KORANGI NO. MILLAT ROAD. MARIA APPT. SECTOR H. SECTOR 36-A. ABDUL AZIZ FLAT 101-102. STREET NO. SAHIWAL.111 704 780 793 993 1. HUSSAIN STREET.050 646 601 Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. MUSTAFA TERRACE.276. 42-S. BLOCK # 2. 8. SHAHID HAROON QURESHI SHAHID HAROON QURESHI HOUSE NO. 3. KARACHI. 56 MUHAMMAD REHAN Name 42301-0932511-7 35202-1359856-7 34203-9913127-1 42301-0952646-5 42301-2828015-5 42201-0500212-7 37201-7840596-1 42201-0731709-5 42101-6574935-5 42201-9302723-7 42201-6711711-1 38403-2166499-1 42401-6255346-7 42401-1294717-5 42201-9402803-5 35202-8602410-7 36502-1352295-5 42201-5195322-7 33100-6860772-1 33202-8172633-1 NIC No. BS SHARIF PARK. MOHAMMAD AMIR HOUSE NO. STREET NO. FAYYAZ HAIDER 50-B HOUSE NO. KARACHI. LAHORE. REPID GARDEN GREEN TOWN. 52.

925 Total (Rupees in '000) Annexure . MUHAMMAD ZAHID MUHAMMAD ZAHID HOUSE # 28. NORTH NAZIMABAD TOWN SEC 14-B. 77 Annual Report 2015 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 HAFIZ MUHAMMAD AHSAN IQBAL ABDUL MAJID CHAUDRY ABDUL FAHIM MUHAMMAD SHARIEF ABDUL SABOOR CHOHAN MUHAMMAD SHARIF M.075 8.103. SHAHEED-E-MILLAT BAHADURABAD.No. MUHAMMAD SHARIEF HOUSE NO A-1/25 LIAQUATABAD NO. KORANGI 5 1/2. MUHAMMAD ABID MUSHTAQ MUHAMMAD ABID MUSHTAQ HOUSE NO.010 574 556 524 687 1. SARGODHA. SHEIKH MUHAMMAD IQBAL ABDUL MALIK WAHAJ-UD-DIN ABDUL QADEER ABDUL SAEED KHAN ADDUL QUDDUS MUHAMMAD MUSHTAQ MUHAMMAD LATIF CHOHAN DALEER KHAN HAMID ALI MUHAMMAD UMAR ABDUL GHANI GHULAM MUHAMMAD SALEEM AHMED KHAN GHULAM HUSSAIN KHOKHAR MOHAMMAD NASEEM MUHAMMAD RAFIQUE HAFIZ NAZIR AHMAD SYED IFTIKHAR ALI SHAH ABDUL JABBAR Father’s / Husband’s Name 317 665 301 2. GHOOS PAK ROAD KORANGI 5-1/2. 1-2-3 DOLMEN ARCADE. 1. LAHORE. KARACHI. MARIA LUXURY APPT. QAMAR SH MUHAMMAD MUNIR MUSHTAQ AHMED BILAL SALEEM ALI RAZA SHAHANI FAWAD AHMED SHAHZAD AHMED MUHAMMAD IMRAN SAJJAD HAIDER SAJJAD HAIDER HOUSE NO. ABDUL FAHIM HOUSE G-748. M.355 988 599 350 361 330 383 638 413 6. 601. KARACHI. GALI NO. BILAL SALEEM R-74. SH MUHAMMAD MUNIR MUGHAL PURA. MASJID WALI GALI MAIN BAZAR NIZAMABAD. 76 MUHAMMAD FAROOQ Name 35202-6817781-1 42201-4721695-9 42201-5874598-1 42201-6760622-7 42101-6389777-7 42201-8794775-3 35201-6696231-1 35202-2847745-9 35201-5411459-9 35202-3023513-9 35202-1402026-3 35200-8975050-7 38403-2104076-5 501-79-758595 35202-2714529-5 42101-2531720-1 33100-8325719-3 33201-3166853-1 35202-6609774-7 42201-7061810-3 NIC No. FAWAD AHMED FLAT NO. 2. 332-E-AREA. 595. GULSHAN RAVI.783 3.1 . PARDESI PALACE. KARACHI. BLOCK-B. LAHORE. 62. JOHAR TOWN. USMAN TOWN. ISLAMABAD.427 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - - - Other Financial Relief 520 738 518 2.LAHORE ASLAM PERVAIZ ASLAM PERVAIZ HOUSE NO. AKEEL HOUSE NO.608 6.427 - - - - - - - - - - - - - - - - - - - - 680 1. FAISALABAD.034 911 861 343 377 441 304 1. LAHORE ABDUL SABOOR CHOHAN H NO. 606. GARDEN WEST. CANAL COLONY JARAN WALA ROAD. 6.371 859 734 650 826 2. 607.899 1.LAHORE. KARACHI. FEDERAL B. MUHAMMAD SHAKIL MUHAMMAD SHAKIL HOUSE NO. HOUSE NO. SHAHZAD AHMED P 11 STREET 2.248 208 297 190 177 98 206 498 Principal written-off 364 423 357 2. AREA G.127 1. SHAHNAWAZ GARDEN.180 336 713 384 379 426 481 1. STREET NO. LAHORE. MUSHTAQ AHMED 11 BAHADAR SHAH ZAFAR ROAD.098 Principal 363 391 357 2.748 1. MULTAN ROAD.195 6. BLOCK-5. SATELLITE TOWN 21-KM FEROZPUR ROAD. LAHORE. WASSAN PURA. UMAR DIN ROAD. ABDUL MAJID CHAUDRY FLAT # A 10 PLOT NO.822 1. KARACHI. BLOCK F.355 988 551 350 361 329 380 601 413 - 336 713 384 379 428 480 1.428 544 1. HAFIZ MUHAMMAD AHSAN IQBAL HOUSE 316-E.389 1.104 MUHAMMAD IMRAN HOUSE 702. BLOCK-3. KARACHI. ALLAMA IQBAL TOWN. 2015 156 315 161 467 366 291 150 177 211 124 350 662 2. MOHALLA RAILWAY LYRIX COLONY LAHORE. KARACHI.748 791 658 475 355 222 346 1. JAMSHED ROAD NO 3.525 Accrued Mark-up Others Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. STREET NO 5. SHADMAN TOWN. KARACHI. BB-41. QAMAR & M. STREET 75. Name of Individuals / partners / directors MUHAMMAD FAROOQ FLAT NO. MUHAMMAD SHARIF 144 N MARGZAR COLONY. GULSHAN RAVI. AREA. LAHORE.056 658 4. Name & Address of borrower 75 S.354 890 500 538 541 507 988 1. ALI RAZA SHAHANI 83 ZENAT BLOCK. SECTOR G 10/4.412 693 738 770 684 2. BLOCK-B.384 3. 1. 2.

TAHIR HUSSAIN HOUSE # 538. KARACHI. HAROON BEHRIA SOCIETY. KACHS.No. MUGHAL PURA.SHIRAZ AHMED ABBASI SHIRAZ AHMED ABBASI HOUSE NO. SYED IMTIAZ ALI SHAH SYED IMTIAZ ALI SHAH HOUSE 326. NISHAT COLONY. HUB RIVER ROAD. LAHORE. HYDERABAD ABDUL RASHID HOUSE # 9/8 MASJID QUAT UL ISLAM COLONY LIAQUATABAD. LAHORE. LAHORE.438 683 742 732 1. TOWN SHIP. MUHAMMAD MANZAR HOUSE # R-1/2 STREET # 13. SECTOR 15-A/4. AZAM KHAN HOUSE NO. KARACHI. DINA TEHSIL AND DISTT JHELUM DINA. LAHORE. HABIB ISHAQ HABIB ISHAQ HOUSE 311/A-1. ABDALI / B ROAD ISLAM PURA LAHORE. OPPOSITE WAPDA OFFICE.224 232 460 511 288 409 450 926 338 335 449 783 915 463 269 279 376 Principal 448 1. STREET 7.340 420 317 461 514 344 287 512 345 407 283 734 849 323 375 387 466 - - - - - - - - - - - - - - - - - - 922 2. MUGHAL PURA BAZAR. AKMAL HUSSAIN 59-B. KHAWAR IQBAL HOUSE # 627.148 596 512 501 652 Total (Rupees in '000) Annexure . A-1/6. REVENUE EMPLOYEES COOPERATIVE HOUSING SOCIETY. 33100-4453012-7 35202-9475154-7 35201-1243166-9 35202-2791709-5 42201-0242921-7 42301-5389019-1 35201-3255147-1 42301-6861531-1 35202-2226681-3 35202-9556211-5 35301-1926515-1 42101-3241279-5 35202-3035919-9 42101-7986470-7 41303-6195119-3 37405-7402717-7 37301-5520959-5 36302-4755536-3 NIC No. AZIZ UR REHMAN HOUSE NO. ATHAR ALI ATHAR ALI HOUSE # B-38. MAIN BAZAR SANDA KALAN SECTOR 85. LAHORE. GULSHAN-E-HALI.564 652 777 972 802 753 737 1. KARACHI. 97 98 99 100 101 102 103 104 105 106 107 MUHAMMAD NASEER KHAN 114-C.10 JAN MUHAMMAD COLONY MASOOM SHAH ROAD WRITERS COLONY MULTAN Name & Address of borrower 95 S. GULSHAN-E-IQBAL. LAHORE. FAISALABAD. MANGLA ROAD. NAVAL COLONY SECTOR 4. STREET 36. STREET NO. KACHA FEROZ PUR ROAD. SECTOR A-2. BS-180. 108 ZAFAR IQBAL KHURRAM SHAHZAD TAHIR HUSSAIN AZIZ UR REHMAN AKMAL HUSSAIN KHAWAR IQBAL MUHAMMAD MANZAR AZAM KHAN ABDUL RASHID WASEEM ABBAS WASEEM ABBAS IQBAL TOWN. LAHORE. 109 110 111 112 Annual Report 2015 MUHAMMAD WASEEM AKHTER KHAN MUHAMMAD NASEER KHAN ZAFAR IQBAL FLAT NO. COLLEGE ROAD. MUHAMMAD WASEEM AKHTER KHAN P-8-Z-B. RAWALPINDI. STREET 11. BLOCK-B. HALI ROAD. KHURRAM SHAHZAD HOUSE # 178/A. NORTH KARACHI. 40. BLOCK # B. AFZAL PARK. STREET 156. Name of Individuals / partners / directors ABDUL RASHEED MUHAMMAD AZAM ZAFAR CHAUDRY MUHAMMAD ISHAQ KHAN MUHAMMAD KHAN MUHAMMAD IQBAL MUKHTAR HUSSAIN NAZIR HUSSAIN MOHAMMAD RAMZAN KHAN CH FAZAL HUSSAIN SYED ABDUL SALAM MUHAMMAD SAEED MUHAMMAD IDREES SALEEM KHAN ABDUL WAHID ASGHAR ALI MUHAMMAD IRSHAD ABBASI SHEIKH ALLAH DITTA ZULFIQAR ALI Father’s / Husband’s Name 474 1. BLOCK-1. BUSHRA ZAFAR STREET. BLOCK-19.1 105 . 96 SHAHAN SHAH BABAR Name SHAHAN SHAH BABAR H NO. MOHSIN ZAFAR MOHSIN ZAFAR HOUSE # 1 ZAFAR MANZIL STREET # 3. 6 BAGH SARDARAN. MIAN MEER COLONY UPPER MALL. BUFFER ZONE. STREET # 26. 68.737 539 547 622 660 547 525 961 523 521 507 936 1. 2015 199 389 112 230 161 144 199 225 449 178 110 224 202 299 273 134 114 186 Principal written-off 448 1. BLOCK # 8. KARACHI.348 427 317 461 516 348 300 512 345 411 283 734 849 323 378 387 466 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - Other Financial Relief 647 1.517 1.764 786 644 666 842 Accrued Mark-up Others Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. RUPALI RESIDENCY. MADINA TOWN.

GULISTAN-E-JAUHAR. MUHAMMAD AJMAL KHAN HOUSE NO.6.902 877 773 Accrued Mark-up Others Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. PHASE-II.1762/A. ISLAMI CHOWK. BLOCK-L. REHAN AHMED HOUSE NO. ST NO. NORTH NAZIMABAD. MULTAN. 39. F. KARACHI.855 1. P. ADNAN ATHER HOUSE NO.B. LAHORE. RAWALPINDI. BLOCK # 9. SAJID HUSSAIN HOUSE NO.1104.442 3.379 600 341 369 3. JAMSHED QUARTER. BLOCK NO. 714/4.180 939 841 762 1. KARACHI. LAHORE. B-251.223 591 5. HOUSE. SHUJJA COLONY. SECTOR C 4. ROSHAN BAGH SOCIETY. JHELUM. 93/B STREET NO. MOHAMMAD YOUNUS KHAN HOUSE NO. 113 Name Name & Address of borrower S.205 595 541 Total (Rupees in '000) Annexure . CB-403. AREA.355 1.106 MUHAMMAD NAWAZ MUHAMMAD NAWAZ CHAH SAMUNDRIWALA MIANI RAWAH POST OFFICE JHOK LASHKAR PUR TEHSEEL MULTAN SADAR MULTAN SYED MOHAMMAD OBAID ATHAR WASTI HOUSE # R-1183.855 673 1. MAIN KHAYABAN-E-JAMI. 101-B. 2015 - - - - - - - - - 172 285 177 305 191 170 97 273 224 Principal written-off 712 1. 42101-8036861-7 42101-2480070-5 42201-0941524-9 42301-0892683-5 37301-2496820-7 36302-0467308-1 35202-1816860-5 33100-4090901-7 35202-5031409-7 42301-7918925-0 81302-2442074-7 37301-6375588-1 37405-9079652-3 37405-0681466-9 33100-0734962-9 42101-2891157-5 36303-2464930-3 35201-1428438-7 NIC No. MOHAMMAD USMAN FLAT NO.No. F.3.098 694 930 590 2. MUHAMMAD RAEES AAMIR J. RAWALPINDI. KARACHI. CHACHI MOHALLAH. STREET # 9. TEHZAB EHHATTA. 05.160 2. NATIONAL BANK COLONY. ARAFAT TOWN.918 767 1. REHMAN GUNJ. FAISALABAD. QUBA MARKET.098 694 930 590 2.976 694 882 222 2. BLOCK-2. 19. FAZAL DAD ROAD. STREET NO. Name of Individuals / partners / directors ABRAR AHMED MOHAMMAD YOUSUF FAROOQ AHMED SIDDIQUI MOHAMMAD HASHIM MUHAMMAD SHARIF HAJI MUHAMMAD ASHRAF KHAN MIAN MUHAMMAD RAFIQUE MUHAMMAD MUNIR SHEIKH HABIB AHMED SHAIKH QASIM BASHIR AHMED NIAMAT GILL MUHAMMAD ATHER SHAMIM MIRZA MAQBOOL AHMED BABO MUHAMMAD SADIQ SYED MUHAMMAD IDRESS AKHTAR WASTI KHUDA BUKSH MUHAMMAD MUNIR BUTT Father’s / Husband’s Name 970 924 1. MUHALLAH GHULLAM MUHAMMADABAD. EXTENSION DHA. LANE-8.212 639 641 582 952 570 532 1. LAHORE. NASHEMAN ARCADE.A.S. 633-A. PLOT NO.2. 24/B AL RAHMAT STREET HAJI QAMAR DIN PARK KOT KHAWAJA SAEED.918 767 1. 96-C. KARACHI. MUHAMMAD ABBAS MUHAMMAD ABBAS HOUSE # H-253. 114 115 Annual Report 2015 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 REHAN AHMED MOHAMMAD YOUNUS KHAN MOHAMMAD USMAN MUHAMMAD RAEES AAMIR MUHAMMAD AJMAL KHAN MIAN MUHAMMAD KHALID RAFIQUE SAJID HUSSAIN IRFAN ANJUM ADNAN ATHER SHABBIR HUSSAIN SYED MOHAMMAD OBAID ATHAR WASTI MUHAMMAD NADEEM BUTT MUHAMMAD NADEEM BUTT HOUSE NO. HAFEEZ AHMED HAFEEZ AHMED STREET NO. MUHALA CHAH USMAN WALA MLQ ROAD. SHAMAS PUR. KALEEM AHMED KALEEM AHMED HOUSE NO.1 . KARACHI.212 467 356 405 608 376 357 1. PESHAWAR ROAD. AREA.B. JHELUM. B-148.772 2. AYAN STREET.615 2. KARACHI. SAMANABAD.294 1. 89.108 322 317 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - Other Financial Relief 712 1. LAHORE MIAN MUHAMMAD KHALID RAFIQUE HOUSE NO. PLOT NO.518 1. PO KHAS MIRPUR AK MIRPUR AK AASMA QASIM AASMA QASIM FLAT NO.772 2. LANE NO. NEAR GUJJAR WALI MASJID.2. SHABBIR HUSSAIN HOUSE NO.O KALA BASE.138 702 702 1. IRFAN ANJUM DOMAILY WALI GALI WEST COLONY CANTT.108 274 299 - - - - - - - - - - - - - - - - - - 1. 23-E.000 487 968 472 485 357 530 326 345 794 603 474 Principal 645 1. FIRST FLOOR.212 467 356 405 647 379 362 1. KHURRAM FAROOQ KHURRAM FAROOQ BANGLOW NO.

CHOTKI GHITTI.470 2. ZAFAR IQBAL ZAFAR IQBAL H NO.815 762 547 510 1. SARGODHA Name & Address of borrower 131 S. FALCON COMPLEX. AREA 2-B. ORANGABAD. 132 Name FAROOQ JAMIL QURESHI FAROOQ JAMIL QURESHI SILAWALI ROAD ZEESHAN PARK. MUMTAZ AHMED KHAN HOSUE NO. 39/12.767 1. DEFENCE HOUSING AUTHORITY.337 1. KARACHI.042 1.085 Total (Rupees in '000) Annexure . FATIMA MANZIL. MUHAMMAD SUALEEN HOUSE NO. BLOCK-A. NAZIMABAD NO. Name of Individuals / partners / directors MUHAMMAD IBRAHIM MUHAMMAD HUSSAIN CHAND KHAN NAZEER AHMED MUHAMMAD RAFFI MUHAMMAD ABDULLAH KHAN MUHAMMAD SALEEM ABDULLAH MEHER MOHAMMAD IKHTIAR UD DIN MUHAMMAD ZAKRIYA ABDUL REHMAN ALTAF HUSSAIN SHAIKH FATEHYAAB KHAN KHUSRO ALAM KHAN ABDUL LATIF ABDUL MAJEED ABDUL KAREEM JAAN MUHAMMAD HAJI JAMIL AHMED QURESHI Father’s / Husband’s Name 396 594 236 589 956 5. 312. ITEFFAQ COLONY.243 1. 7. L-199.473 1. KARACHI. KARACHI.1732/117.263 655 651 799 4. HYDERABAD. HYDERABAD. SARGODHA. CAPITAL PLAZA.STREET NO.430 4. MUHAMMAD NASIR PLOT # 622-A. PHASE-6. KARACHI. KARACHI.191 2. NORTH KARACHI IMRAN ALTAF IMRAN ALTAF HOUSE 42-A/3. KHAYABAN-E-SHUJAED. AL MUSTAFA COLONY. BALDIA TOWN NO. RWP.958 3.142/1. SECTOR 12/C.770 1. NEW CLOTH MARKET.311 995 679 1. MOHAMMAD REHAN FLAT NO.586 1. SATELLITE TOWN. SAEEDABAD. SDH 331. GULSITAN-E-JOHAR.1 107 . RAHIMYAR KHAN.020 - - - - - - - - - - - - - - - - - - - - 1. FLAT # 138/2. 01.293 850 519 5.554 1. MUHAMMAD SHAHZAD HOUSE NO.016 1. 48 MOHALLA ALNOOR COLONY.022 5. STREET NO. KARACHI 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 Annual Report 2015 MUHAMMAD SUALEEN MUHAMMAD NASIR BASHIR AHMED MUHAMMAD SHAHZAD MASOOD AHMED KHAN MUHAMMAD HAMID AQEEL ADEEL AHMED KHAN MOHAMMAD REHAN ABDUL REHMAN RASHID LATIF MUMTAZ AHMED KHAN SALEEM ULLAH MUHAMMAD AKRAM MUHAMMAD AKRAM NEAR THANA URBAN AREA HOUSE NO.13.701 9.081 1.634 8. BUFFER ZONE.294 739 584 4.263 655 651 799 4. WALI REHMANI GALI. LANDHI 3. MOHALLA PUNJABI.237 1. BLOCK-18.311 995 679 1. ABDUL REHMAN HOUSE NO. BABA FAREED CENTRE. ORANGI TOWN.083 484 1. MUHAMMAD YOUNIS MUHAMMAD YOUNIS FLAT NO. NAZIMABAD. 10.064 1. KARACHI. 01 MOHALLAH QAZAFI COLONY NO. KARACHI. HUB RIVER ROAD. 21.293 850 519 5.519 6.SALEEM ULLAH HOUSE NO.787 588 935 1. LANE NO. ADEEL AHMED KHAN HOUSE NO. ORANGI TOWN.022 5. BALDIA TOWN.327 1. 42201-2683021-9 42301-4265274-9 42401-0545743-3 42401-1741805-7 42101-7063625-1 42000-0571346-5 42101-9973652-1 41303-3755674-1 42401-8240694-9 42301-4470197-9 41303-1303639-9 42401-3003039-7 37405-4113948-1 42101-7660896-7 42201-9643141-5 42101-3519453-5 42101-9903461-3 31303-1662797-3 38403-9119754-3 38403-3801069-5 NIC No. UPPER PORTION. BASHIR AHMED H NO. 2ND FLOOR. KARACHI.042 1. ABDUL KHALIQ ABDUL KHALIQ HOUSE NO. KARACHI. SECTOR 11/B. BIHAR COLONY. 621. 5 KARACHI RASHID LATIF HOUSE NO.No.1.57/8.777 576 537 - 688 3. HOUSE # 4.745 761 546 484 946 5. SECTOR 5-G. STREET-13. NAZIMABAD. R-322 15/4.326 1. RUFI PARADISE. 02. NASIR MEHMOOD NASIR MEHMOOD HOUSE NO. 5-E 5/11.522 1.3.731 921 1.137 685 648 745 3.326 1.085 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - - - Other Financial Relief 889 1. FAISAL SOCIETY. AZHAR ALAM KHAN AZHAR ALAM KHAN FLAT B-601. LYARI. MUHAMMAD HAMID AQEEL HOUSE NO. 2015 - - - - - - - - - - - - - - - - - - - - Principal written-off 889 1. KARACHI.466 960 802 522 956 Principal 847 1. MASOOD AHMED KHAN HOUSE NO.960 1.016 1. II-G-1/7.815 762 547 510 1. BLOCK-60.088 810 671 1. SECTOR 5-A-1.976 Accrued Mark-up Others Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31. KARACHI.

KARACHI.399 2.071 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - - Other Financial Relief 1.811 5. KARACHI.256 3. AL MASOOM TOWN. LAHORE. RAW NO.599 503 4. AMJAD KAMRAN QURESHI H # 9. RAIWIND ROAD. KARACHI. SAFARI VILLAS. LAHORE.133 4.138 648 1.981 862 1. MULTAN. LAHORE CANTT.No. RAWALPINDI.10.695 7.375 601 2. SINDH MHD ARIF KHAN 74-E.573 801 1.A BLOCK-V. AL-KABEER ARCADE.873 Principal 1.294 1. LAHORE.098 1. FAISALABAD.056 - - - - - - - - - - - - - - - - - - - 1. MIAN EJAZ SADDIQ & KANIZ FATIMA 8-J.. 824-C. MEHMOOD KHAN WAQAR HAIDER FAKHAR-UD-DIN MUHAMMAD HANIF RIFAAT HAYAT KHAN MUHAMMAD HUSSAIN RANA FAIZ BUKSH MUNAWAR BUKSH WAHEED UDDIN KHAN GHULLAM HAIDER IMRAN KHAN SHAMSUDDIN MOLO KAMJI ATTA ULLAH QURESHI SYED ABDUL ANIS MUMTAZ ALI CHEEMA MIAN MUHAMMAD SIDDIQ SYED ALI AWST ZAIDI MUHAMMAD SADDIQ SYED SABTAIN HAIDER Father’s / Husband’s Name 586 2.010 595 614 1.813 990 2.033 1. LAHORE. MUHAMMAD SALEEM & KHALIDA SALEEM TAJDAR-E-MADINA STREET.187 2. SHOP # 2.294 1. SUB BLOCK NO. Name & Address of borrower 151 S. 2015 - - - - - - - - - - - - - - - - - - - Principal written-off 1.821 2.500 3. AL LATIF CENTRE. MAIN ROAD.499 1.255 2.109 5. LAHORE. IRFAN HAIDER CHEEMA IRFAN HAIDER CHEEMA HOUSE NO P/35. 152 Name 42101-9792139-5 42201-7712799-9 35301-2012833-9 34603-9015811-3 36103-9623492-5 25233-6200522-0 36302-4593265-9 35202-3496903-1 35202-7424608-9 38403-5399597-2 42101-8734819-1 42201-0660907-1 37405-9490995-7 42000-0440242-0 33100-5975841-9 (I) 35202-2956309-5 (II) 35202-1264605-4 36302-9966701-9 36302-9825177-3 35202-6936492-1 NIC No. WILLAYATABAD NO. PAF BASE OFFICERS COLONY.759 607 4. FAROOQ AZAM PARK. GULGASHT COLONY. M/S SANA STATIONERS SHOP # 9. M/S.246 4.718 6.797 1. SIALKOT. BLOCK-2.369 2. ST 1.408 11. MAIN BOULEVARD.072 2.039 514 1.538 2.110 1.381 3.459 1.701 923 2.867 2. NUSSEF WANJEE ROAD.245 1. 2. MUHAMMAD USMAN HOUSE NO.NO.365 2. AFOHS. IMRAN KHAN II 1833. SECTOR 11/E.827 766 561 1.028 2. GULBARG-III. REHMAN PARK. LAHORE-PAKISTAN.759 607 4. KARACHI.STAR CONSULTANTS CLINIC 823-C. 33.108 SYED M.399 2.110 1. SHAISTA ANIS (I) MIAN EJAZ SIDDIQ (II) KANIZ FATIMA SYED M.263 8.222 1. AZAM ZAIDI MUHAMMAD YAQOOB MUHAMMAD YAQOOB HOUSE # 138.918 3. ELAHI CENTER.734 2. OPF HOUSING SCHEME. WASEEM HAYAT KHAN MOHALLAH JINDI WEHRA PAK GATE MULTAN BETI SARAI. Name of Individuals / partners / directors SYED BADSHAH RAZA NAQVI SYED BADSHAH RAZA NAQVI 480-C. FALCON COMPLEX. MULTAN. RANA MUREED ABBAS HOUSE # 134.PLOT NO.1 .117 2.071 Total (Rupees in '000) Annexure .929 Accrued Mark-up Others Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.072 2.905 7. 2ND FLOOR.827 766 561 1. WAPDA TOWN. OUTFALL ROAD.49. PLOT # 415. NORTH KARACHI.946 1. CENTRAL COMMERCIAL AREA. MUSLIM KHAN/MUSLIM T H.813 990 2. UGOKI ROAD.671 1. PECHS. MUHAMMAD ARIF BUTT 55-RASHEED STREET.138 648 1. IFTKHAR HAIDER WAQAR ELECTRONICS.582 1. AZAM ZAIDI 694 C.311 2.185 4.201 2.340 5.560 2. KARACHI.133 4.981 862 1. JINNAH TOWN. NAZIMABAD. SADDAR. LAHORE PERVEZ AMIN KHAN 310-F-II.606 1. HADBAST MOUZA NAWAN KOT LAHORE. BAHRIA TOWN.178 472 2. MULTAN. 153 Annual Report 2015 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 MUSLIM KHAN IFTKHAR HAIDER IJAZ AHMED QAISER MUHAMAD SALEEM WASEEM HAYAT KHAN MUHAMMAD ARIF BUTT RANA MUREED ABBAS MUHAMMAD USMAN PERVEZ AMIN KHAN MHD ARIF KHAN IMRAN KHAN II SHIRAZ AMJAD KAMRAN QURESHI DR.GARDEN EAST.375 601 2. GULBERG-III.446 816 2. IJAZ AHMED QAISER OFFICE # 66. OPP REGAL CINEMA. 5-A.

827 872 1.634 910 1. 172 173 174 175 176 177 178 179 180 181 182 MUHAMMAD ASLAM 168 TEULAR EXT BAHRIA TOWN LAHORE.809 3.157 1.013 3.199 1.235 879 1. FINANCIAL CONSULTANT 154.878 Interest/ Mark-up written-off - - - - - - - - - - - - - - - - - - - Other Financial Relief 871. Name of Individuals / partners / directors HAMID HAMZA WEAVING LIAQAT ALI H # 326-P.228 1. MOHALLAH SULTANABAD.943 Total Outstanding liabilities at the beginning of the year Statement showing written-off loans or any other financial relief of five hundred thousand rupees or above provided during the year ended December 31.147 2. MUDASSAR OIL TRADERS RAVI CHOWK.500 - 900 68 Principal 1.167 1. METAB AFTAB KHAN FURNITURE MARKET NAGRA ROAD. BLCOK-E. SAHIWAL .878 Total (Rupees in '000) Annexure .875 Annual Report 2015 - - - - - - - - - - - - - - - - - - - Accrued Mark-up Others 1.096 799 1.350 2.451 1.1 109 .131 701 580 8.612 12.220 2. AMIR KHURSHID AHMED (I) SHAKEELA SARWAR (II) MUHAMMAD SAEED ZAREEN SALMAN MALIK MUHAMAD NASEEM (I) MUHAMMAD AMIN (II) ARIF MAHMOOD DR.844 1.088 2. LAHORE. MUHAMMAD DIN HAJI AHMED KHAN MUAWAR AHMAD MALIK MUHAMMAD SHAFI MOHAMMAD ASHRAF ALLAH RAKHA ARSHAD ALI NOOR ELAHI GHULAM MUHAMMAD MUHAMMAD IBRAHIM AFTAB AHMAD KHAN AHMED (I) MUBARAK ALI (II) MUHAMMAD HUSSAIN HAIDER SULEMAN MUHAMMAD ASLAM (I) MUHAMMAD HUSSAIN (II) MUHAMMAD AMIN MUHAMMAD SADIQ KHAN MUHAMMAD DIN Father’s / Husband’s Name 949 751.747.996 1. MODEL TOWN B. BASEMENT 9. LAHORE. JOHAR TOWN.292 1. B/1698/2-3.566 1.977 701 526 6.566 1. DAVIS ROAD.157 1.480 760 1. AMIR H NO. KHAN FURNITURE HOUSE MEHTAB KHAN PROPRIETOR: MR. MUHALLA NO.MUSLIM PHARMACY HOUSE # 655. ZAREEN SALMAN HOUSE #157-E. SUKKUR.800 1. NAWABSHAH. FAKHAR RAZA MEDITEST LABS H NO 3. GHARIBABAD. 1. MUSHTAQ AHMED 11 BAHADAR SHAH ZAFAR ROAD SARGODHA MUHAMMAD AAMIR NOOR NISHAT HOUSE 53-A LAWRENCE ROAD LAHORE RASHID TRADERS NEW GHALLA MANDI KAMOKI KARWAN-E-IBRAHEEM KARWAN E IBRAHEEM GRAND PLAZA.038 2.292 1. HARAPPA. RAWALPINDI.260 5. ABDUL JABBAR PIRZADO HOUSE A-2217.405 7. 134/7. NEAR MOMEN MASHID. Name & Address of borrower 170 S.455 - - - - - - - - - - - - - - - - - - Principal written-off 719. 2015 151. MOHALLA NOOR PARK ISLAMABAD 171 Name 45504-5522471-1 45402-4404981-1 36502-9181269-9 35202-0093131-1 34102-9867231-1 35202-9085403-3 34102-4543503-3 35202-0458607-7 38403-1040765-5 37405-4009243-3 35202-7072059-9 35202-3628189-9 (I) 35201-1331699-4 (II) 35202-2416095-9 35200-1406689-9 35202-6230285-5 (I) 33100-1682784-3 (II) 33100-3574741-3 35202-2037651-1 33100-5961471-1 NIC No.748 400 500 1.No. MUHAMMED ASLAM MUGHA MUHAMMED ASLAM MUGHA HOUSE NO.480 760 1.117 198 397 4. LAHORE KHURSHID & SONS 276-D. FAISALABAD.038 2.781 2.172 3.008 3. LAHORE.731 2.393 995.809 3.125 3. NEAR SHEZAN STOP BUND ROAD. 184 185 186 187 ABDUL JABBAR PIRZADO MUDASSAR OIL TRADERS MUHAMMAD ASLAM QAYOOM RICE TRADERS SHARI KHAN WALI P/O WANDOW TEHSIL KAMOKI DIST GUJRANWALA.131 701 580 8.281 1. 14.647 2. PUNJAB CO-OPERATIVE HOUSING SOCIETY.228 1.094 1.777 701 1.754 3.731 2.000 193 1. FAISALABAD.070 1.235 879 1.731 2.731 3. 183 RAZA ABDUL QAYUM RASHID ALI MUHAMMAD AAMIR NOOR MUSHTAQ AHMED M. BLOCK A. OFFICE # 4/A. NATIONAL ENVIRONMENT LAHORE.013 3.654 3. MAHLLA GHULAM MUHAMMAD ABAD. LAHORE CANTT. ST NO.800 - 1.262 2. M.066 1.710 3.728 2.262 2. MULTAN ROAD.167 1. SABZAZAR SCHEME.125 3.086 6. WESTRIDGE 2.157 1.

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Our audit was conducted in accordance with the International Standards on Auditing and accordingly included such tests of accounting records and such other auditing procedures as we considered necessary in the circumstances. Date: 24 February 2016 Karachi KPMG Taseer Hadi & Co. consolidated statement of comprehensive income.Auditors’ Report to the Members We have audited the annexed consolidated financial statements comprising consolidated statement of financial position of NIB Bank Limited and its subsidiary companies (“the Group”) as at 31 December 2015 and the related consolidated profit and loss account. These financial statements are responsibility of the Holding Company's management. consolidated statement of changes in equity and consolidated cash flow statement together with the notes forming part thereof. the consolidated financial statements present fairly the financial position of NIB Bank Limited and its subsidiary companies as at 31 December 2015 and the results of their operations for the year then ended. is based solely on the report of such other auditors. in so far as it relates to the amounts included for such Fund. We have also expressed separate opinion on the financial statements of NIB Bank Limited and have reviewed its subsidiary company (PICIC Asset Management Company Limited) for the six months period ended 31 December 2015 except for PICIC Energy Fund which was reviewed by other firm of auditors for the six months period ended 31 December 2015 whose report has been furnished to us and our opinion. Our responsibility is to express an opinion on these financial statements based on our audit. In our opinion. Chartered Accountants Amyn Pirani Annual Report 2015 113 . for the year then ended.

028.159 16.547 18.195.699.894 105. 2015 Note 2015 2014 (Rupees in ‘000) ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets .013 642.623) (42.086.643 4.675 586.net Other assets Assets held for sale 8 9 10 11 12 13 14 15 16 17 10.086 1.703 194.416.300.446 890.645.512 997.665 – 226.432.599.582 (45.691 93.net 23 24 CONTINGENCIES AND COMMITMENTS 25 The annexed notes 1 to 45 and annexure .740.543 1.350.914 8.195 – – 3.123 (45.995.512 474.750.494 3.340) 15. Bokhari Teo Cheng San.075 9.1 form an integral part of these consolidated financial statements.544 178.023.063.359.463.159 16.399.516 – – 3.491 9.668.992.063.Consolidated Statement of Financial Position As at December 31.118) 17.597 110.672 1.979 4.840.028.670.673.609 7.528 62.164 9.057 2.994 3.769.926.044 96.769.418 7.081 – 245.052.741 130.102.800 4.932.631.576.271.089.676.042.157.646 59.219 103.033.623) (40.558.353 248.415 2.301 2.089.216 85.082 18. Atif R.197. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director 114 Annual Report 2015 .932.219 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities Liabilities held for sale 18 19 20 21 22 17 NET ASSETS REPRESENTED BY: Share capital Reserves Discount on issue of shares Accumulated loss Shareholders’ equity Surplus on revaluation of assets .953.806 103.

361 2.063.10) 0. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 115 .Profit for the year from discontinued operations .371 – 89.441. Atif R.731) 41.248.003.631 199. commission and brokerage income Dividend income Income from dealing in foreign currencies Gain on sale of securities .477 423.869 73.931 191.561) 2.302.Profit for the year from discontinued operations .534.net of tax PROFIT / (LOSS) AFTER TAXATION Attributable to: Equity shareholders of the Bank .229 184.321 10.954) 109.116 4.Deferred 11.1 32 Profit / (loss) after taxation from continuing operations DISCONTINUED OPERATIONS Profit from discontinued operations .257 (620.014 (14.Profit / (loss) for the year attributable to equity shareholders of the Bank Non-controlling unit holders .001 10.650.Profit for the year attributable to non-controlling unit holders EARNINGS / (LOSS) PER SHARE Basic and diluted .268.536.831.871 3.01 0.877 6.549 (13.954) 344.Current .515 15. Bokhari Teo Cheng San.931 99.819 141.800 207.616.231 357.737.071.063.086.856 10.527.534 443.431 1.603 (1.425.423.007.359 – 1.420.12 Net mark-up / interest income after provisions NON MARK-UP / INTEREST INCOME Fee.550.790 2.184.639 2.473) – 3.079 109.Consolidated Profit and Loss Account For the year ended December 31.524 2.524 2.851 197.264.4 33 14.10.350 6.578 2.586 1.329 (1.787 1.07) The annexed notes 1 to 45 and annexure .876.931 – – 99.03 0.098 140.856) 15.421 1.24 (0.295.5 11.225 1.697) 2.690 4.PICIC Mutual Funds .continuing operations Basic and diluted .159 15.Prior years .582 6.159 (Rupees) 0.183.010 490.discontinued operations 17.822.457 11.625) 215.376 66.125 5.056 4.Profit / (loss) for the year from continuing operations .098 (719.483 587.25 (0.098 6.Profit for the year from continuing operations .171.net Unrealized gain / (loss) on revaluation of investments classified as held-for-trading Other income Total non mark-up / interest income 28 29 NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Total non mark-up / interest expenses 30 31 Share of (loss) / profit of associates Extraordinary / unusual items Proft / (loss) before taxation from continuing operations Taxation .402 96.248 386.390.181 509.574 – (640.096.501 (11. 2015 Note 2015 2014 (Rupees in ‘000) CONTINUING OPERATIONS Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest Income Provision against non-performing loans and advances Provision / (reversal) for diminution in the value of investments Bad debts written off directly 26 27 12.1 form an integral part of these consolidated financial statements.075 6.

PICIC Mutual Funds 2.transferred to statement of changes in equity Components of comprehensive income not reflected in equity Items that may be reclassified to profit or loss in subsequent periods Movement in surplus on revaluation of available for sale securities .612 (616.159 15.232.931 99.1 form an integral part of these consolidated financial statements.156. 2015 2015 Note 2014 (Rupees in ‘000) Profit / (loss) after taxation for the year attributable to: Equity shareholders of the Bank Non-controlling unit holder .931 – Discontinued operations – – 99.098 1. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director 116 Annual Report 2015 .758 Other comprehensive income Items that will not be reclassified to profit or loss in subsequent periods Actuarial gain on remeasurement of defined benefit obligation 36.948.660 109.524 344.931 99. Atif R.159 The annexed notes 1 to 45 and annexure .741) 1.534. Bokhari Teo Cheng San.917 1.net of tax Total comprehensive income for the year Total comprehensive income attributable to: Equity shareholders of the Bank – Continuing operations – Discontinued operations Non-controlling unit holders PICIC Mutual Funds – Continuing operations 15.555.047.Consolidated Statement of Comprehensive Income For the year ended December 31.871 1.891) (1.806 2.856) 15.603 (719.940 1.172.078 3.4 Comprehensive income .808 1.416 888.331.382.159 – – 5.

534 – – – – 5. Atif R.806 3.472 (41.769.078 Other comprehensive income Actuarial gain on remeasurement of defined benefit obligation 36.512 (45. Bokhari Teo Cheng San.891) – – – – (99.340) 15.931) (15.651 5. 2015 103.722 Total comprehensive income for the year Loss after taxation for the year – – – – (620.550.4 – – – – 2.016.534 2.891) (616.459 – (523.028.769.159) Other comprehensive income Actuarial gain on remeasurement of defined benefit obligation 36.078 5.290) 16. 1962. 2014 468.300.159) (99.623) Balance as at December 31.353 (a) This represents reserve created under section 21(1)(a) of the Banking Companies Ordinance.512 (45.697) – – – – 3.623) – (40.4 Share of non-controlling unit holders of PICIC Stock Fund and PICIC Islamic Stock Fund transferred to other liabilities 103.028.Consolidated Statement of Changes in Equity For the year ended December 31.651 5.028.555.416.623) Balance as at December 31.1 form an integral part of these consolidated financial statements.472 (42. The annexed notes 1 to 45 and annexure .110 5.472 Balance as at December 31.612 Share of non-controlling unit holders of PICIC Energy Fund transferred to liabilities held for sale – – – – (15. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 117 .459) 992.806 – – – – (616.931) Transfer to statuory reserve – – 523.612 2. 2015 Attributable to ordinary shareholders of the Bank Reserves Capital Note Share capital Discount on Statutory issue of reserve shares (a) Revenue General Accumulated reserve loss Total (Rupees in ‘000) 103.697) (620.432.840.716.769. 2013 468.672 Total comprehensive income for the year Profit after taxation for the year – – – – 2.512 (45.555.550.118) 17.

075 Adjustments for non-cash items Depreciation Amortization Impairment charge on tangible fixed assets Gain on sale of securities .net Gain on sale of operating fixed assets .803.494.031) 773.001.516 – (729.558) 140.780) (64) 8.795) (1.435) (8.130) 367.837.629) (37.654 (122.261) 39.238) 24.787) (8.201. 2015 2015 2014 (Rupees in ‘000) CASH FLOWS FROM OPERATING ACTIVITIES Profit / (loss) before taxation including discontinued operations Less: Dividend income 4.847 324.Consolidated Cash Flow Statement For the year ended December 31.520 (4.449) (1.127.007.560.602 (853.572.935) (17.545.231 (272.221 215.898 93.619 199.485) (257.925.029.379) (270.708) (8.286) 22.200 6.376) 2.030 Net cash (used in) / generated from investing activities (36.470) (8.286) 1.512) (164.290) 980.248 184.941 (4.189) (169.402 (1.847 25.504 321.995 39.907) (162) – 1.296.328) 4.905 (107.536.231) 3.897) (92.336 (327.546.120 191.639 309.658.net Gain from insurance against loss of fixed assets .840 780.276.net Fixed assets written off Provision against non-performing loans and advances Bad debts written off directly Provision / (reversal) for diminution in the value of investments Unrealized loss / (gain) on revaluation of investments classified as held-for-trading Other provisions / write offs Share of profit of associates (Increase) / decrease in operating assets Lendings to financial institutions Net investments in 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 Net cash generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES 118 Annual Report 2015 .133 341.743) (200.915 (353.244.948) (2.284) 72.731 141.193) Net investments in available-for-sale securities Net investments in held-to-maturity securities Net investments in associates Dividend received Payments for capital work in progress Acquisition of property and equipment Acquisition of intangible assets Sale proceeds of property and equipment disposed off Recovery from Insurance company against loss of assets (36.935) 11.468 181 9.229 2.193.135) 11.501 2.186.606 (5.376 (548.686 (13.637 27.619 (21.534.034.561) 14.843 406.136 (191.640) 311.421 (11.069 (457.975.100.780 1.

093 The annexed notes 1 to 45 and annexure .629 (46.994.195 (22) (203.210 4.679) (45) 415. 2015 Note 2015 2014 (Rupees in ‘000) CASH FLOWS FROM FINANCING ACTIVITIES (Redemption) / receipt of sub-ordinated loans Dividend paid Receipt from non-controlling unit holders PICIC Mutual Funds Net cash generated from financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 34 (1.650.005 3.206 8.197.113) 8.650.1 form an integral part of these consolidated financial statements. Atif R. Bokhari Teo Cheng San.696.Consolidated Cash Flow Statement For the year ended December 31.047.168) 3.934 414.697.093 11.536 8. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 119 .

The Bank acquired interest in PICIC AMC by virtue of acquisition and amalgamation of Pakistan Industrial Credit and Investment Corporation Limited (PICIC) as of June 30. an investment arm of the Government of Singapore. NIB Bank Limited is a subsidiary of Bugis Investments (Mauritius) Pte. 1984 and the directives issued by the SBP. Limited which is a wholly owned subsidiary of Fullerton Financial Holdings Pte. 1984 and the directives issued by the SBP shall prevail. 1962. 1962. Subsidiary Companies PICIC Asset Management Company Limited (PICIC AMC) PICIC AMC is a wholly owned subsidiary of the Bank and is an unquoted public limited company with principal business to carry out investment advisory services and asset management services in Pakistan. the provisions of and directives issued under the Banking Companies Ordinance. which is the Group's functional and presentation currency. The Fund is managed in accordance with the provisions of the Non-Banking Finance Companies (Establishment and Regulation) Rules. The objective of PEF is to provide retail investors an access to high quality blue chip stocks in the energy sector shares having the potential of offering healthy dividends and growth opportunity. The Bank's ordinary shares are listed on Pakistan Stock Exchange and has 171 branches (December 31. In case the requirements differ. PICIC Energy Fund (PEF) The Group maintains 50. 3 STATEMENT OF COMPLIANCE 3. 2014: 171 branches). 2015 1 STATUS AND NATURE OF BUSINESS The "Group" consists of: Holding Company: NIB Bank Limited (the Bank) NIB Bank Limited "the Bank" is incorporated in Pakistan and its registered office is situated at first floor. 120 Annual Report 2015 . F-7 Markaz. the Companies Ordinance. 2 BASIS OF PRESENTATION In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. Limited which in turn is a wholly owned subsidiary of Temasek Holdings. The Bank is a scheduled commercial bank and is principally engaged in the business of banking as defined in the Banking Companies Ordinance.11% interest in the PEF. the Companies Ordinance. provisions of and directives issued under the Banking Companies Ordinance. Permissible forms of traderelated modes of financing include purchase of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. 2003) and the units of the Fund are listed on Pakistan Stock Exchange. Islamabad. the State Bank of Pakistan (SBP) has issued various circulars from time to time. 2007.Notes to the Consolidated Financial Statements For the year ended December 31. These consolidated financial statements have been presented in Pakistan Rupees. PEF is an open end scheme and its principal business is to invest in listed equity securities of energy sector with an objective to capture significant return. Financial and Management Services (Private) Limited (FMSL) The Group acquired 95. 1984.89% interest in FMSL by virtue of acquisition and amalgamation of PICIC. The amounts are rounded off to the nearest thousand rupees.1 These consolidated financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Post Mall. 2003 (NBFC Rules. 1962. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) as are notified under the Companies Ordinance. The purchases and sales arising under these arrangements are not reflected in these consolidated financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon.

interpretations and amendments to published approved accounting standards that are not yet effective The following standards.3 Standards. – Accounting for Acquisitions of Interests in Joint Operations – Amendments to IFRS 11 ‘Joint Arrangements’ (effective for annual periods beginning on or after 1 January 2016) clarify the accounting for the acquisition of an interest in a joint operation where the activities of the operation constitute a business. – Agriculture: Bearer Plants [Amendment to IAS 16 and IAS 41] (effective for annual periods beginning on or after 1 January 2016). investments have been classified and valued in accordance with the requirements of various circulars issued by the SBP. The amendment is not likely to have an impact on the Group's financial statements. plant and equipment during construction. (b) exemption to present consolidated financial statements is available to a parent entity that is a subsidiary of an investment entity. IFRS 7 "Financial Instruments: Disclosures" has not been made applicable for banks. and has a remote likelihood of being sold as agricultural produce. 2002 has deferred the applicability of International Accounting Standard 39. Plant and Equipment (effective for annual periods beginning on or after 1 January 2016) introduce severe restrictions on the use of revenue-based amortization for intangible assets and explicitly state that revenue-based methods of depreciation cannot be used for property. dated August 26. or when the intangible asset is expressed as a measure of revenue. The amendments are not likely to have an impact on the Group's financial statements. Therefore. then such change in classification Annual Report 2015 121 .Notes to the Consolidated Financial Statements For the year ended December 31. However. 2008. – Investment Entities: Applying the Consolidation Exception (Amendments to IFRS 10 – Consolidated Financial Statements and IAS 28 – Investments in Associates and Joint Ventures) [effective for annual periods beginning on or after 1 January 2016] clarifies (a) which subsidiaries of an investment entity are consolidated. plant and equipment. reclassifies an asset from held for distribution to owners to held for sale or vice versa without any time lag. Financial Instruments: Recognition and Measurement (IAS 39) and International Accounting Standard 40. amendments and interpretations of approved accounting standards will be effective for accounting periods beginning on or after 01 January 2016: – Amendments to IAS 38 Intangible Assets and IAS 16 Property. The new cycle of improvements contain amendments to the following standards: – IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'. 3. Accordingly. The amendments are not likely to have an impact on the Group's financial statements. Annual Improvements 2012-2014 cycles (amendments are effective for annual periods beginning on or after 1 January 2016).e. IFRS 5 is amended to clarify that if an entity changes the method of disposal of an asset (or disposal group) i. joint ventures and associates in their separate financial statements. Further. 10. Plant and Equipment for measurement and disclosure purposes. A bearer plant is a plant that: is used in the supply of agricultural produce. Bearer plants are now in the scope of IAS 16 Property.2 SBP vide BSD Circular No. is expected to bear produce for more than one period. – Amendment to IAS 27 ‘Separate Financial Statement’ (effective for annual periods beginning on or after 1 January 2016) allows entities to use the equity method to account for investments in subsidiaries. The amendments are not likely to have an impact on the Group's financial statements. 2015 3. However. The rebuttable presumption that the use of revenue-based amortization methods for intangible assets is inappropriate can be overcome only when revenue and the consumption of the economic benefits of the intangible asset are ‘highly correlated’. and (c) how an entity that is not an investment entity should apply the equity method of accounting for its investment in an associate or joint venture that is an investment entity. Before maturity. the requirements of these standards have not been considered in the preparation of these consolidated financial statements. They require an investor to apply the principles of business combination accounting when it acquires an interest in a joint operation that constitutes a business. Investment Property for banking companies till further instructions. the produce growing on bearer plants will continue to be measured at fair value less costs to sell under IAS 41 Agriculture. according to a notification of the Securities and Exchange Commission of Pakistan (SECP) dated April 28. a company can elect to measure bearer plants at cost. The amendments are not likely to have an impact on the Group's financial statements. bearer plants are accounted for in the same way as self-constructed items of property.

except for the measurement of certain investments and commitments in respect of forward foreign exchange contracts and other forward contracts that are stated at revalued amounts / fair values. It also requires the management to exercise its judgment in the process of applying the Group's accounting policies. then it ceases held for distribution accounting in the same way as it would cease held for sale accounting. IFRS 7 is also amended to clarify that additional disclosures required by ‘Disclosures: Offsetting Financial Assets and Financial Liabilities (Amendments to IFRS7)’ are not specifically required for inclusion in condensed interim financial statements for all interim periods. – IAS 19 ‘Employee Benefits’. Held-for-trading securities Investments classified as held-for-trading are those which the Group has acquired with an intention to trade by taking advantage of short term market / interest rate movements.3. – IAS 34 ‘Interim Financial Reporting’.Disclosures’. held-to-maturity securities are investments where the management has positive intent and ability to hold to maturity. The classification of these securities involves management judgment as to whether the financial assets are held-to-maturity investments. liabilities. 122 Annual Report 2015 . IFRS 7 is amended to clarify when servicing arrangements on continuing involvement in transferred financial assets in cases when they are derecognized in their entirety are in the scope of its disclosure requirements. income and expenses. including expectations of future events that are believed to be reasonable under the circumstances. – IFRS 7 ‘Financial Instruments. Available-for-sale securities Investments which are not classified as held-for-trading or held-to-maturity are classified as available-for-sale. 4 BASIS OF MEASUREMENT These consolidated financial statements have been prepared under the historical cost convention. 5 CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The preparation of consolidated financial statements in conformity with approved accounting standards requires the use of certain critical accounting estimates that affect the reported amounts of assets. The above amendments are not likely to have an impact on the Group's financial statements. These estimates and assumptions are reviewed on an on-going basis.Notes to the Consolidated Financial Statements For the year ended December 31.1 Classification of Investments Held-to-maturity securities As described in note 6. if they are not included in the notes to interim financial statements and disclosed elsewhere should be cross referred. Estimates and judgments are evaluated and are based on historical experience. IAS 34 is amended to clarify that certain disclosures. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods. 2015 is considered as continuation of the original plan of disposal and if an entity determines that an asset (or disposal group) no longer meets the criteria to be classified as held for distribution. The areas where various assumptions and estimates are significant to the Group's financial statements or where judgment was exercised in application of accounting policies are as follows: 5. IAS 19 is amended to clarify that high quality corporate bonds or government bonds used in determining the discount rate should be issued in the same currency in which the benefits are to be paid.

Notes to the Consolidated Financial Statements For the year ended December 31. Bonds and Sukuks is made as per the Prudential Regulations issued by the SBP. an impairment loss is recognized immediately in the profit and loss account and the carrying value of the asset reduced by the amount of the loss. 5.2 Impairment Valuation and impairment of available-for-sale investments The Group determines that an available-for-sale equity investment and mutual funds are impaired when there has been a significant or prolonged decline in the fair value below its cost. If the recoverable amount of an intangible or tangible asset is less than its carrying value. operations in its account and adequacy of security in order to ensure accurate measurement of the provision.3 Provision against non-performing advances Apart from the provision determined on the basis of time based criteria given in the Prudential Regulations of the SBP. industry and sector performance. The determination of what is significant or prolonged requires judgment. changes in technology and operational and financing cash flows. In making the provision for deferred taxes.4 Retirement Benefits The key actuarial assumptions concerning the valuation of the defined benefit plan and the sources of estimation are disclosed in note 36. If any such indication exists. the normal volatility in share price. 5. estimates of the Group's future taxable profits are taken into account. Impairment of non financial assets (excluding deferred tax) Non financial assets are subject to impairment review if there are events or changes in circumstances that indicate that the carrying amount may not be recoverable.2 to these consolidated financial statements. 5. management also applies subjective criteria of classification and accordingly the classification of an advance may be downgraded on the basis of evaluation of the credit worthiness of the borrower. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. the method would be changed to reflect the change in pattern. its cash flows. A reversal of an impairment loss on intangible assets is recognized as it arises provided the increased carrying value does not exceed that which it would have been had no impairment loss been recognized. impairment may be appropriate when there is evidence of deterioration in the financial health of the investee. Value in use is the present value of future cash flows from the asset discounted at a rate that reflects market interest rates adjusted for risks specific to the asset.5 Operating fixed assets. the loss is recognized in the profit and loss account.6 Income taxes In making the estimates for income taxes currently payable by the Group. the Group estimates the recoverable amount of the asset and the impairment loss. 5. the management uses method which reflects the pattern in which economic benefits are expected to be consumed by the Group. among other factors. The method applied is reviewed at each financial year end and if there is a change in expected pattern of consumption of the future economic benefits embodied in the assets. the management looks at the current income tax laws and the decisions of appellate authorities on certain issues in the past. In making this judgment. Provision for diminution in the value of Term Finance Certificates. depreciation and amortization In making estimates of depreciation / amortization. In case of impairment of available for sale securities. the Group evaluates. 6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in the preparation of these consolidated financial statements have been applied consistently and are the same as those applied in the preparation of the consolidated financial statements of the Annual Report 2015 123 . 2015 5. if any. In addition.

Notes to the Consolidated Financial Statements For the year ended December 31. 2014. exposure to variable returns and the ability to use its power to influence the returns of the investee. – IFRS 10 . particularly the inclusion of non-financial instruments into the fair value hierarchy. Where debt securities are purchased at a premium or discount. – IFRS 13 . in accordance with the requirements of the Prudential Regulations issued by the SBP. 6. The Securities and Exchange Commission of Pakistan (SECP) vide its notification SRO 633(1) / 2014 dated July 10. – IFRS 11 . The application of this standard doesn't have an impact on these consolidated financial statements except for the certain disclosures as mentioned in note 11. no additional investee is considered to be in control of the Group and due to the fact that IFRS-10 is not applicable as explained above. identified assets acquired. 2014 adopted IFRS 10 effective from the period starting from June 30. it has been notified that the Companies Ordinance 1984 will not be applicable with respect to the investment in mutual funds established under trust structure. 6. 124 Annual Report 2015 .1 Business combinations Business combinations are accounted for using the purchase method. except for the following standards which became effective during the year. 2016.'Consolidated Financial Statements' It replaces the current guidance on consolidation in IAS 27 -'Consolidated and Separate Financial Statements'. Under this method. In light of the above.'Fair value measurement' It consolidates the guidance on how to measure fair value into one comprehensive standard. Under this method. 2015 Group for the year ended December 31.e. irrespective of the extent of any non-controlling interest. The application of IFRS 13 does not have any impact on the consolidated financial statements of the Bank except for certain disclosures as mentioned in note 39. – IFRS 12 . such premium / discount is amortized through the profit and loss account over the remaining period of maturity using the effective interest rate method so as to produce a constant rate of return. However. 2014 and are enumerated as follows. i. The financing method is used in accounting for income on finance leases and hire purchase transactions. vide its notification SRO 56(1) / 2016 dated January 28. where necessary. Interest or mark-up recovered on non-performing advances is recognized on a receipt basis in accordance with the requirements of the Prudential Regulations issued by the SBP as amended from time to time. The excess of cost of acquisition over the fair value of identifiable net assets acquired is recorded as goodwill. The application of IFRS 11 does not have any impact on the financial statements of the Group.2 Revenue recognition Mark-up / return on performing loans / advances and investments is recognized on time proportionate basis. It introduces the use of an exact price. It also removes the IAS 31 concept to jointly controlled assets. the excess of aggregate lease rentals and the estimated residual value over the net investment (cost of leased assets) is deferred and then amortized to income over the term of the lease on a pattern reflecting a constant periodic rate of return on the net investment in the lease.3. Unrealized lease income is suspended. the unearned income. liabilities and contingent liabilities assumed are fair valued at the acquisition date.'Joint Arrangements' IFRS 11 'Joint Arrangements' replaces IAS 31 'Interests in Joint Ventures' it requires all joint ventures to be equity accounted hereby removing the option in IAS 31 for proportionate consolidation. It introduces a single model of assessing control whereby an investor controls an investee when the investor has the power to control. as well as disclosure requirements.'Disclosure of Interest in Other Entities' Prescribes additional disclosures around significant judgments and assumptions used in determining whether an entity controls another entity and has joint control or significant influence over another entity.10. the Group has continued to apply the same basis of accounting in respect of its investments in associates and subsidiaries as in the previous year. The standard also requires disclosures on the nature and risks associated with interest in un-consolidated structured entities.

commission and brokerage income is recognized at the time of performance of the service. includes transaction costs associated with the investments.Notes to the Consolidated Financial Statements For the year ended December 31. Held-to-maturity These are securities with fixed or determinable payments and fixed maturity for which the Group has the positive intent and ability to hold up to maturity.. i. Investments are initially recognized at fair value which. less any impairment loss recognized to reflect irrecoverable amounts. Available-for-sale Quoted-securities classified as available-for-sale investments are measured at subsequent reporting dates at fair Annual Report 2015 125 . Dividend income is recorded when the right to receive the dividend is established. Gains and losses on remeasurement are included in the profit and loss account. Regular way purchases or sales of investments are those that require delivery of assets within the time frame generally established by regulation or convention in the market place. documentation charges and other lease income are recognized as income when they are realized. Held-for-trading These are measured at subsequent reporting dates at fair value. Capital gains / losses arising on sale of investments are included in the profit and loss account in the period in which they arise. 2015 Rental income from assets given on operating lease is recognized on time proportionate basis over the lease period. held-for-trading and available-for-sale. 6.e. Available-for-sale These are securities which do not fall under the classification of held-for-trading or held-to-maturity securities.3 Investments Investments of the Group. Subsequent measurement Held-to-maturity These are measured at amortized cost using the effective interest rate method. other than investments in subsidiaries and associates are classified as held-to-maturity. dealer's margin or are securities included in the portfolio for which there is evidence of a recent actual pattern of short-term profit taking. Held-for-trading These securities are either acquired for generating a profit from short-term fluctuations in market prices. interest rate movements. Gains / losses on termination of lease contracts. Fee. Management fee is recognized on an accrual basis. Transaction costs on investments classified as heldfor-trading are expensed as incurred. the date that the Bank commits to purchase or sell the asset. Initial measurement All “regular way” purchases and sales of investments are recognized on the trade date. in the case of investments other than held-for-trading.

is credited to the profit and loss account. in which case the obligation to return them is recorded at fair value as a trading liability under borrowings from financial institutions. Unquoted equity securities are valued at the lower of cost and break-up value. Securities purchase with a corresponding commitment to resell at a specified future date are not recognized in the financial statements. Investments in associates are accounted for under the equity method. In the Group's case. 6. Provision made / reversed during the year is charged to the profit and loss account and accumulated provision is netted off against advances.4 Lendings to / borrowings from financial institutions (including repurchase and resale 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. up to the cost of an investment. these are holding in mutual funds managed by PICIC AMC. unless these are sold to third parties. The break-up value of these equity securities is calculated with reference to the net assets of the investee company as per the latest available audited financial statements. Investments in other unquoted securities are valued at cost less impairment losses. The increase / decrease in the share of profit or loss of associates is accounted for in the consolidated profit and loss account. Provisions Specific and general provisions are made based on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan from time to time. 2015 value (and any revaluation gain or loss is taken to Other Comprehensive Income (OCI)). Investment in Associates Associates are entities where the Group has a holding of less than 50% and also have significant influence therein. Any surplus / deficit arising thereon is kept in a separate account shown in the balance sheet below equity and taken to the profit and loss account when actually realized upon disposal or when the investment is considered to be impaired. Under the equity method. Advances are written off when there is no realistic prospect of recovery. transactions are shown under advances. the investment in associates is initially recognized at cost and the carrying amount is increased or decreased to recognize the investor's share of profit or loss of the investee subsequent to the date of acquisition. Provision for diminution in the value of securities (except term finance certificates and sukuks) is made for impairment. 126 Annual Report 2015 . if any. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate of the amount of loss expected. if any. In the case of the margin trading system. The difference between sale and repurchase price is treated as mark-up / return expensed whereas difference between purchase and resale price is treated as mark-up / return earned. The general provision is for the inherent risk of losses which are known from experience to be present in any loan portfolio.Notes to the Consolidated Financial Statements For the year ended December 31. A decline in the carrying value is charged to the profit and loss account.5 Advances Advances including margin trading system and net investment in finance lease are stated net of provisions. Net investment in finance lease is recognized at an amount equal to the aggregate of minimum lease payments and any guaranteed residual value less unearned finance income. Provision for diminution in the value of term finance certificates and sukuks is made as per the criteria prescribed by the Prudential Regulations issued by the SBP. 6. A subsequent increase in the carrying value. Net investment in finance lease Leases include hire purchase where the Bank transfers substantially all the risks and rewards incidental to the ownership of an asset and are classified as finance leases. Securities purchased under agreement to resale (reverse repo) are not recognized in the financial statements as investments and the amount extended to the counter party is included in lendings to financial institutions.

6. if any. Depreciation is charged to income applying the straight line method over the estimated useful lives of the assets while taking into account any residual value. 6. Major repairs and improvements are capitalized and assets so replaced are retired. Gains and losses on disposal of property and equipment if any. Amortization is charged to the profit and loss account on a straight line basis over the assets' useful lives which are determined using methods that best reflect the pattern of economic benefits. In respect of additions and deletions to assets during the year. 2015 6.8 Sub-ordinated Loans Sub-ordinated loans are initially recorded at the amount of proceeds received. Normal repairs and maintenance are charged to the profit and loss account for the year as and when incurred. The estimated useful lives are as follows: Core deposit relationships Core overdraft / working capital loan relationships Management rights 11 years 11 years Indefinite life Computer software is stated at cost less accumulated amortization and accumulated impairment loss. and core overdraft / working capital loan relationships and are stated at cost less accumulated amortization and accumulated impairment losses. Finance charges are allocated to accounting periods so as to provide a constant periodic rate of return on the outstanding liability.2 to these consolidated financial statements. Assets held under Finance Lease Leasehold land is stated at cost. Assets held under operating lease Operating lease assets are stated at cost less accumulated depreciation and impairment. Mark-up accrued on these loans is recognized separately as part of other liabilities and is charged to the profit and loss account over the period at effective interest rate. These are transferred to specific assets as and when assets are available for use. are taken to the profit and loss account for the year. The outstanding obligations under the lease agreements are shown as a liability net of finance charges allocable to future periods.6 Operating fixed assets and depreciation Owned Property and equipment except freehold and leasehold land is stated at cost less accumulated depreciation and accumulated impairment loss. if any. depreciation is charged from the month of acquisition while depreciation on disposals during the year is charged up to the month of disposal. Amortization is carried out on the straight line method at the rates given in note 14 to these consolidated financial statements. at the rates given in note 13.Notes to the Consolidated Financial Statements For the year ended December 31. if any. Assets held under finance lease are stated at cost less accumulated depreciation. Capital work in progress These assets are stated at cost. Repairs and maintenance are charged to the profit and loss account as and when incurred. Annual Report 2015 127 . Freehold and leasehold land is stated at cost. Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by the Group.7 Intangible assets Intangible assets include the value of core deposit relationships. if any.

Equal monthly contributions are made to the fund by both the Group and the employees at the rate of 10% of basic salary. Provision against non-funded losses is recognized when intimated and reasonable certainty exists that the Group will be required to settle the obligation. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Provision is made in accordance with actuarial recommendations. Provisions are reviewed quarterly and are adjusted to reflect the current best estimate.Notes to the Consolidated Financial Statements For the year ended December 31. Past service costs are charged to the profit and loss account. that are expected to be applicable at the time of their reversal. 6. The Group recognizes a deferred tax asset for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profits will be available against which the unused tax losses and unused tax credits can be utilized in accordance with the requirements of IAS 12 "Income Taxes". 2006. The Group records deferred tax assets / liabilities using tax rates. The related deferred tax asset / liability is adjusted against the related deficit / surplus. The Group recognizes a deferred tax asset / liability on deficit / surplus on revaluation of securities in accordance with the requirements of IAS 12 "Income Taxes". Actuarial gains and losses are recognized immediately in other comprehensive income with no subsequent recycling through profit and loss accounts. Defined contribution plan The Group operates a defined contribution provident fund for all its permanent employees. enacted or substantially enacted at the statement of financial position date. 6. The provision is charged to the profit and loss account net of expected recovery and the obligation is classified under other liabilities. 128 Annual Report 2015 .10 Taxation Income tax expense comprises current and deferred tax. Current Provision for current taxation is based on taxable income at the current rates of taxation in accordance with the prevailing laws for taxation on income earned after taking into consideration tax credits and rebates available and any adjustments to tax payable in respect of previous years. Actuarial valuation is carried out periodically using the "Projected Unit Credit Method”. Eligible employees are those employees who have joined the service of the Bank on or before March 31. Deferred Deferred tax is recognized using the balance sheet liability method on all major temporary differences as at the statement of financial position date between the amounts attributed to assets and liabilities for financial reporting purposes and amounts used for taxation purposes. A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available against which the asset can be utilized.9 Staff retirement benefits Defined benefit plans The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years.11 Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made. 2015 6. Income tax expense is recognized in the profit and loss account except to the extent that it relates to items recognized directly in equity.

e. investments. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in Rupee terms at the rates of exchange approximating those prevailing at the statement of financial position date. Financial assets carried on the statement of financial position include cash and Group balances. Financial assets are derecognized when the Group loses control of the contractual rights that comprise the financial assets. 6.16 Cash and cash equivalents For the purposes of the cash flow statement. deposits. is carried forward as unrealized gain in view of the uncertainty associated with its realization. other than statutory appropriations. in the period in which such appropriations are approved. as a matter of prudence.13 Dividend distribution Dividend is recognized as a liability in the period in which it is declared.14 Distributions of bonus shares and other appropriations to reserves The Group recognizes all appropriations. or to realize the assets and to settle the liabilities simultaneously. respectively. advances and certain receivables. liabilities.Notes to the Consolidated Financial Statements For the year ended December 31. Exchange gains and losses are included in income currently except net unrealized exchange gain on long-term monetary items which. 1971. Any gain or loss on derecognition of the financial assets and financial liabilities is taken to income directly. Assets. Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial statements at committed amounts. commitments and contingent liabilities in respect of Bangladesh are translated at foreign exchange rates approximating those prevailing prior to August 15. when the obligation specified in the contract is discharged. Forward foreign exchange contracts are valued at forward rates applicable to their respective maturities. 6. lendings to financial institutions. cancelled or expired. Income and expense items relating to such assets and liabilities are also offset and the net amount is reported in the financial statements. Annual Report 2015 129 .15 Foreign currencies Transactions in foreign currencies are translated to Rupees at the foreign exchange rates prevailing at the transaction date. The particular recognition methods adopted for significant financial assets and financial liabilities are disclosed in the individual policy statements associated with them. to reserves including those in respect of bonus shares made after the statement of financial position date. 6. Non-monetary assets and liabilities in foreign currencies are expressed in Rupee terms at the exchange rates prevailing at the date of initial recognition of the non-monetary assets and liabilities. Assets against which the constituents have exercised their option to transfer exchange risk to the Group and liabilities for which the Group has exercised its option to transfer exchange risk to the Government. Financial liabilities are derecognized when they are extinguished i. Appropriation to statutory reserves are recognized in the financial statements of the period to which these appropriations relate to. 6. 6. bills payable and other payables. cash and cash equivalents include cash and balances with treasury banks and balances with other banks.12 Offsetting Financial assets and financial liabilities are offset and the net amount is reported in the financial statements when there is a legally enforceable right to set-off the recognized amount and the Group intends either to settle on a net basis.17 Financial instruments All financial assets and liabilities are recognized at the time when the Group becomes a party to the contractual provisions of the instrument. Financial liabilities include borrowings. Monetary assets and liabilities in foreign currencies are translated into Rupees at the rates of exchange prevailing at the statement of financial position date. are translated at the rates of exchange guaranteed by the Group and the Government. 2015 6.

which is subject to risks and rewards that are different from those of other segments.18 Derivative financial instruments Derivative financial instruments are recognized at their fair value on the date on which a derivative contract is entered into and subsequently these instruments are marked to market and changes in fair values are taken to the profit and loss account. 6. Treasury Treasury manages the asset and liability mix of the Group. underwriting. EPS is calculated by dividing the profit 130 Annual Report 2015 . 6. syndicated financing along with advisory. trade finance. deposit products & transaction services offered by the Bank to small & medium enterprises and commercial businesses operating in the manufacturing.22 Earnings per share The Group presents earnings per share (EPS) data for its ordinary shares.19 Segment reporting A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment). Retail It represents banking services offered to individuals and small businesses through a retail branch banking and alternate distribution network. and Initial Public Offerings(IPO) related activities.1 Business Segments Corporate and Investment Banking It represents all funded and non funded credit facilities of working capital financing including seasonal finance. These banking services include lending. or in providing products or services within a particular economic environment (geographical segment). Commercial It represents all funded and non funded credit facilities. as well as for long term expansion. Fair values are obtained from quoted market prices in active markets. cash flow. transactional banking.19. 2015 6.2 Geographical segments The Group operates in Pakistan only.20 Assets acquired in satisfaction of claims The Bank acquires assets in settlement of certain advances. cash finance. 6. running finance.Notes to the Consolidated Financial Statements For the year ended December 31. All derivative financial instruments are carried as assets when their fair value is positive and liabilities when the fair value in negative. interest rate fluctuations and foreign exchange risk. Mark-up accrued on deposits is recognized separately as part of other liabilities and is charged to the profit and loss account on a time proportionate basis. Balancing Modernization and Replacement(BMR). and provides customers with products that meet their demands for management of liquidity. deposits and distribution of insurance products along with other financial products and services tailored for such customers.21 Deposits Deposits are initially recorded at the amount of proceeds received. 6. The Group’s primary format of reporting is based on business segments. guarantees and bills of exchange relating to corporate customers. trading. 6. wholesale and service sectors.19. 6. Project financing. These are recorded at the lower of the carrying value of the related advances and the current fair value of such assets.

5 "Non-Current Assets Held for Sale and Discontinued Operations". 6. the assets are measured at the lower of their carrying value or fair value less cost to sell. A discontinued operation is a component of the entity that either has been disposed of.24 Assets held for sale and discontinued operations During the year. When an operation is classified as a discontinued operation. due to the above. Annual Report 2015 131 . the Group has also decided to sell 50. Once classified as held for sale."the Group".23 Fiduciary Assets Assets held in a fiduciary capacity are not treated as assets of the Group in the statement of financial position. Thereafter. The accounting policies of the subsidiary companies and associates are consistent with the policies adopted by the Group. Financial and Management Services (Private) Limited has not been consolidated as it is not material and this investment has been fully provided. or the power to control the Company is established and are excluded from consolidation from the date of disposal or when the control is lost. Conditional on this sale. non current assets are classified as held for sale if it is highly probable that they will be recovered primarily through sale rather than through continuing use. Accordingly. if earlier. the assets and liabilities of PICIC AMC (100%) including mutual funds (units of which are held by PICIC AMC) and PIF (50. the Group decided to sell its 100% shareholding in PICIC Asset Management Company Limited (PICIC AMC. 6. any equity accounted investee is no longer equity accounted.32% of the Bank's total unit holding of 34. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognized in profit or loss. 7 BASIS OF CONSOLIDATION These consolidated financial statements includes the financial statements of NIB Bank Limited and its subsidiary companies . Cash flows from the discontinued operations are presented in note 17. a wholly owned subsidiary of NIB Bank Limited). the comparative profit and loss account is reclassified as if the operation had been discontinued from the start of the comparative year.04%) have been classified as "Assets held for sale" in the statement of financial position (refer note 17). Subsidiary companies are fully consolidated from the date on which more than 50% of the voting rights are transferred to the Group. 2015 or loss attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the year. Gains are not recognized in excess of any cumulative impairment loss. Income and earnings per share from the discontinued operations (PICIC AMC) have been separately presented in the profit and loss account (refer note 17 and note 33). Non-controlling unit holders interest represents that part of the net results of operations and of net assets of the subsidiary companies that is not owned by the Group. or is classified as held for sale. Immediately before classification as held for sale the assets are remeasured in accordance with the Group's other accounting policies.32% of its holding in PICIC Investment Fund (PIF). The assets and liabilities of subsidiary companies have been consolidated on a line by line basis and the carrying value of investment in subsidiaries held by the holding company is eliminated against the shareholders' equity in the consolidated financial statements. and which represents a separate major line of business or is part of a single coordinated plan to dispose of a separate major line of business. In accordance with the requirements of International Financial Reporting Standard (IFRS) . Material intra-group balances and transactions have been eliminated.Notes to the Consolidated Financial Statements For the year ended December 31. Classification as a discontinued operation occurs on disposal or when the operation meets the criteria to be classified as held for sale.

2015 8.699.4 300.2 8.044 7. Note 2015 2014 BALANCES WITH OTHER BANKS (Rupees in ‘000) In Pakistan in current accounts 34.4 5.690 4. CASH AND BALANCES WITH TREASURY BANKS Note 2015 2014 (Rupees in ‘000) In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit accounts With National Bank of Pakistan in local currency current accounts 8.000 (6. 1962.1 Particulars of Lendings In local currency In foreign currencies 10.699.3 These represent repurchase agreement lending to financial institutions carrying mark-up at the rate of 6. 2.259.004 million (2014: Rs.021 240.052. 2. This represents special cash reserve of 15% required to be maintained with the SBP on deposits held under the foreign currency accounts scheme at Nil return (2014: Nil return).299.1 This balance has been written off during the year.646 10.75%) per annum and having remaining maturity of four days (2014: forty three days).016 1. 132 Annual Report 2015 .3 8.2 8.467 8.418 – 1.768 1.573.5% (2014: Nil) per annum and having remaining maturity of four (2014: Nil) days. The current account is maintained with the SBP under the cash reserve requirement of Section 22 of the Banking Companies Ordinance.571 310.404 398.723 1.599.646 – 1.599.675 This includes National Prize Bonds of Rs.4 9.274.599.086 592.777 405.063.276.5% (2014: ranging from 9.3 & 10.1 – 1.1 2.070.044 7.086 9.805.645.385 376.1 8.2 10.116 In deposit accounts 36.044 – 7.50% to 9.044 7. 10.812 1. 10.849 Outside Pakistan Provision against doubtful balances 9.337 296.645.646 1. LENDINGS TO FINANCIAL INSTITUTIONS Call money lending Repurchase agreement lendings (Reverse Repo) 10.094 449. This represents a US Dollar settlement account maintained with the SBP and special cash reserve at Nil return (2014: Nil) required to be maintained with the SBP on deposits held under the new foreign currency accounts scheme.010 In current accounts 1.699.638 163.358.3 8.699.646 1.671 24.653 10.2 Call money lending carries mark-up at the rate of 6.810 million).Notes to the Consolidated Financial Statements For the year ended December 31.431) 586. 8.543 8.

178 64.366 – 2.954 6.242 4.678.178 7.730 433.061.2 11.345 10.7 11.042.735.773 64.127 2.579 (183.127.180 57. 7.299.506 4.427.476.139 17.668.316 21.726 1.577.433 55.959 9.699. Note Held by Group 2015 Given as collateral Total Held by Group 2014 Given as collateral Total (Rupees in ‘000) 11.345 10.417 Associates 11.4 Securities held as collateral against lendings to financial institutions 2015 Further Held by given as Group collateral/ sold Market Treasury Bills Pakistan Investment Bonds 2014 Further Total Held by given as Group collateral/sold (Rupees in ‘000) Total 799.963 1.668.494 724 64.824 96.558 – 24 – – – – 724 19.268 32.722 65.2 11.967 32.646 _ 1.975 34.693.149 _ 7.365.127.044 500.066 108.470.080.597 25.579 96.607 21.913 6.226.073 25.437 (192.087 102.693.908 64.417 – – – 6.497 3.954 6.332 384.730 – – 73.678.826 2.net Net Investments 724 724 31.119.979.2 11.net of provisions 11.9 6.334.679 – 433.980.243 10.940.913 – – – 6.031 1.149 7.726 877.317.733 million (2014: Rs.044 4.682 23.859.670.6 – – – 85.994 31.402.979.974.859.921 55.404 (183.759.5 9.148.515 86.10 2.577.554.567. INVESTMENTS 11.13 Surplus on revaluation of held-for-trading securities Surplus on revaluation of available-for-sale securities .808) 31.779.161.204.11 Total investments .961.044 _ 1.860. 2015 10.691 Annual Report 2015 133 .288 Held-to-maturity securities Pakistan Investment Bonds Term Finance Certificates 11.408.859.443 2.1 The market value of securities held as collateral against lendings to financial institutions as at December 31.8 & 11.550.748 Available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates Sukuk Bonds Cumulative Preference shares Ordinary shares / Certificates in listed companies / modarabas Ordinary shares of unlisted companies Term Finance Certificates 11.365. 2015 amounted to Rs.702 – 32.227 – 5.265) 57.860 637.147 2.Notes to the Consolidated Financial Statements For the year ended December 31.902.366 5.703.917 – – 271.023.334.4 11.814 336.058.579 21.068 million).9 21.646 10.673 13.gross Provision for diminution in value of investments Investments .072 6.686 – 64.4.429 10.6 11.086.730 – – 14.716 59.178 6.433 55.265) 25.226 25.316 – 1.722 65.730 1.210.611.860 587.732 29.808) 95.921 55.265 (192.437 57.227 Subsidiary 11.703.941 45.000 4.245 121.072 6.408.497 _ 3.371 31.214.299.699.959 9.503.3 11.8 & 11.180 57.000 _ _ 799.178 11.070 31.961.044 500.491 – – 49.1 (a) Investments by types: Held-for-trading securities Ordinary shares / certificates in listed companies / modarabas 11. 1.788.

6 11.902.47% to 10.5%) per annum on semi-annual basis with remaining maturities of 2.294 688.404 11.921 134 Annual Report 2015 433.023.50% (2014: 10% to 12.127.2 Market Treasury Bills and Pakistan Investment Bonds are eligible for rediscounting.558 121.9 412.Gross Provision for diminution in value of investments Investments . 150 million have been pledged with National Clearing Company of Pakistan Limited as a guarantee against margin trading system.3 73.670.921 750.67 years to 9.7 21. Market Treasury Bills embody effective yields ranging from 6.2 11.2 180.086.470 65.433 Cumulative Preference Shares 11.980.24 years.730 14.139 Fully Paid-up Ordinary Shares & Modaraba certificates Listed Unlisted Term Finance Certificates – 24 21.402 2.807 Sui Southern Gas Company Limited 11.597 1.1 (b) Investments by segments: Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates 11.5 55.127.726 Listed Unlisted 11. 11.808) 95.788.10 2.3 These DSCs of Rs.634.175 235.265) 57.994 59.243 17.4 Particulars of Sukuk Bonds Number of certificates Name of investee company Note 2015 2014 Cost of investment 2015 2014 (Rupees in ‘000) Liberty Power Tech Limited 11.Notes to the Consolidated Financial Statements For the year ended December 31.178 11. 2015 Note 2015 2014 (Rupees in ‘000) 11.2 11.332 96.11 724 96.178 55.464.425 470. Market treasury bills having a face value of Rs.860 140.921 433.366 5.25% to 12.15% (2014: 12.807 – 377.691 11.730 million are pledged as security and carry interest rate at 12.net of provisions Surplus on revaluation of Held-for-trading securities Surplus on revaluation of Available-for-sale securities-net Net Investments 11.13 (183.000 1.433 .96% (2014: 9.974.860.732 36.000 5.433 – 433.4.408.730 Sukuk Bonds 11.00%) with remaining maturities of 7 days to 315 days and Pakistan Investment Bonds carry mark-up ranging from 9.180 57.979.4 1.073 724 57. 11.4.30% to 6.265 (192.080. 2.8 11.588 Associates 11.171 2.1 5. Certain government securities are required to be maintained with the SBP to meet statutory liquidity requirements calculated on the basis of demand and time liabilities.227 Subsidiary Total investments .464.219.15%) per annum.

1 2.094 9.000 – – – – – – – – – – – – – – – – 13.500.178 55.495 2.000 25. 11.5. At the year end. the applicable rate of return was 7.180 140. 11.500.800 30.000 6.000 2.400 400.180 – – 21.800 3.2 3.626 15.542 31.Notes to the Consolidated Financial Statements For the year ended December 31.4.5.000 15.5.500 200 125.5 Particulars of investment in Cumulative Preference Shares Investee Note Number of shares held 2015 2014 Total nominal value 2015 2014 (Rupees in ‘000) Pak Elektron Limited (PEL) 11.178 55.657 8.486 3.178 11.5% on cumulative basis payable when and if declared by the Board of Directors. 11.500 10.138 – – 605. Mark up and principal installments are made on quarterly basis.752 10.470 Annual Report 2015 135 .180 21.240 2.178 30.000 Galaxy Textile Mills Limited 11.000 170. Mark up and principal installments are made on quarterly basis.800 15.2 These carry mark up at the rate of 3 months KIBOR + 70bps and have an original maturity of five years.631 11.017.5. the applicable rate of return was 9.1 These carry mark up at the rate of 3 months KIBOR + 300bps and have an original maturity of ten years.2 These preference shares are non voting and convertible into ordinary shares after ten years from the date of issuance.138 847 743.500 21.180 – 10.21% per annum.000 41.000 22.017.748 605.000 270. At the year end.489 3.1 These preference shares carry fixed dividend of 9. 11.732 5.446 11.061 5.000 13.4.722 21. These preference shares bear a fixed return at the rate of 5% per annum that will be non cumulative for the first five years and thereafter will be cumulative from year to year.000 25.000 350.365 108.900 57.6% per annum. 2015 11.6 Particulars of investment in Listed Ordinary Shares Number of shares held 2015 2014 Cost of investment 2015 2014 (Rupees in ‘000) Held-for-trading securities Abbott Laboratories Pakistan Limited Attock Cement Pakistan Limited Cherat Cement Company Limited Exide Pakistan Limited GlaxoSmithKline Pakistan Limited K-Electric Limited Lotte Chemical Pakistan Limited Lucky Cement Limited Mari Petroleum Company Limited Meezan Bank Limited National Foods Limited Pak Suzuki Motor Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pioneer Cement Limited Total Available-for-sale Agritech Limited IGI Insurance Limited Tariq Glass Industries Limited Total Total Listed Shares – – – – – – – – – – – – – – – 22.579 95 5.

874 million). Value of investment. Subsequent to the year end.040 million.7.876 million.33% *79. Mahmood Ahmed 11. (June 30.7 Particulars of Unlisted Ordinary Shares Central Depository Company of Pakistan Limited Chief Executive: Mr. Syed Muhammad Zaeem 11. 2014: Rs.763 million). 3. 100 each ** Shares of Face Value of Euro 2.000 3.7. 2015 amounts to Rs. based on the net assets stated in the audited financial statements of investee company as at June 30. Shahid Ghaffar 11.3 Value of investment.000. 11. 117. (June 30.000 5. 2014 amounts to Rs. the Islamabad Stock Exchange was merged with Karachi and Lahore Stock Exchanges as Pakistan Stock Exchange.000 _ 1.000 _ 1.7.760 2.000 5.6 _ _ 568. based on the net assets stated in the audited financial statements of investee company as at June 30.7. 3.200 100 100 SWIFT Chief Executive: Mr.6 _ _ 100.946 11. 33. 872.044 _ 5.034.7. 16. 964.679 million (June 30. 2014: Rs.000 National Investment Trust Limited Chief Executive: Mr.7. (June 30.7. Muhammad Hanif Kasbati 11.00% 5. based on the net assets stated in the audited financial statements of investee company as at June 30.130.1 5.000.320 million.01% **9 **9 2. 2014: Rs.2 Value of investment.83% 3. 2015 amounts to Rs. 2015 Number of shares held Note Percentage of holding 2015 Cost of investment 2014 2015 2014 (Rupees in ‘000) 11.603 3.233 million). based on the net assets stated in the audited financial statements of investee company as at June 30.6 _ _ 10.7.00% 3.680 Crescent Capital Management (Private) Limited Chief Executive: Mr.Notes to the Consolidated Financial Statements For the year ended December 31. based on the net assets stated in the audited financial statements of investee company as at December 31.2 4.250.7. Muqadder Ali Shah 11. 2015 amounts to Rs.000 50. Gottfried Leibbrandt 11.7. (December 31. 2013: Rs.000 Pakistan Textile City (Private) Limited Chief Executive: Mr.5 The Bank has recorded investment in the company at Nil value due to conversion of the Islamabad Stock Exchange from limited by guarantee to public company limited by shares.5 0. Muhammad Hanif Jakhura 11.906 million.680 each 136 Annual Report 2015 .000 5.7. 11.7.200 *79.7.827 million).7.000 Sunbiz (Private) Limited Chief Executive: Mr. 2014: Rs.4 0.034.603 _ _ Pakistan Export Finance Guarantee Agency Limited Chief Executive: Mr.726 11.6 These investments have been written off against provision during the year. 2015 amounts to Rs. 11.1 Value of investment. * Shares of Face Value of Rs.000 Islamabad Stock Exchange Limited Chief Executive: Mian Ayyaz Afzal 57. 11.172 million). 11.000 50.250. 33.4 Value of investment.860 65.3 8. 22.

000 74.890 688.000 41. 2017 December 2.000 each.8.000 41. the Bank received 11. 2018 May 18.864 Term Finance Certificates of Rs.588 235.Annually Quarterly Interest Payment – 10. 5.000 – 10.000 74.25% 3 months KIBOR + 5.888 2015 30.000 200. 2009 – 11. 11.931 118.135 million) classified as held-tomaturity.888 2014 Number of certificates held 2014 154.950 119.9.864 2015 Number of certificates held 2014 470.294 (Rupees in '000) – – 2015 Amortized cost Annual Report 2015 All Term Finance Certificates are of Original Face Value of Rs.1 In the year 2012.1 The investment has been fully provided in these financial statements and includes an amount of Rs.8. 11.135 million (2014: 8.000 5.819 million (2014: 1.04% Interest Rate – Semi .3 May 27.5% – 6 months KIBOR + 3.8.940 – 49. 2017 – October 27.Annually – Semi . 11.Floating Engro Fertilizer Limited Summit Bank Limited Telecard Limited Investee Name of Investee Company Issue Date – 11. 11.9 11. 11.Fixed Bank Alfalah Limited . 2005 December 2.175 (Rupees in '000) 2015 Amortized cost Note 11.000 each. whereby overdue interest on classified advance accounts can only be recognized once this is received in cash.000 11.590 24.550 412. 2017 December 2.355 49.1 September 20. 2011 Maturity Date – Issue Date Particulars of investment in Unlisted Term Finance Certificates 3 month KIBOR+ 2% – Interest Rate Quarterly – Interest Payment 11.3 The investment has been fully provided in these financial statements and includes an amount of Rs.8 Notes to the Consolidated Financial Statements For the year ended December 31.000 10. 2015 137 .25% 15% 6 months KIBOR + 2. 59.8.8.1.908 116.Annually Semi . 2005 Note – September 20. 2015 Maturity Date Particulars of investment in Listed Term Finance Certificates – 6 months KIBOR + 1.Askari Bank Limited Azgard Nine Limited Bank Alfalah Limited .2 These term finance certificates are pledged with National Clearing Company of Pakistan Limited. 5.938 million) classified as held-tomaturity.269 204.440 16.000 32.2 October 27.588 470.269 204.Annually Semi .294 235. 2009 December 2. These certificates have been recognised at nil value in the Bank's books as per the requirement of Prudential Regulations. 2016 October 13.1 Name of Investee Company Azgard Nine Limited Pakistan Mobile Communications Limited – October 13.32 million in respect of overdue mark-up of Azgard Nine Limited.8.9.000 5.692 10.8. having total value of Rs. 2011 11.508 24.425 – 16.864 2014 200.

841 Total carrying value 2015 2014 (Rupees in ‘000) 1.07% 48. 11.714 1.Closed End PICIC Income Fund . 2015 market value per certificate of PICIC Growth Fund and PICIC Investment Fund were Rs. 10 each.774.503 278.Open End* PICIC Cash Fund .435 31.821 10.628.1 Summarized financial information in respect of associates is set out below: 2015 Total assets Total liabilities Net assets Total revenue Total Share of Comprehensive profit / Profit / Income (loss) for loss for the for the the year / year / period year period (Rupees in ‘000) PICIC Growth Fund .642 3.458 1.13% 17.34% 16.065) PICIC Income Fund . 100 each Unless otherwise stated.761.021 5.661.960.549 198.54% 20.160 – – – – – – 1. preference shares and units of mutual funds are of Rs.912 425.570 57.Open End 2.650 – – – – 43.653 1.3.91% 23.872 48.Open End PICIC Islamic Income Fund .738.482.10. 2015 Note Number of units / certificates held 2015 2014 Holding 11.3.932 2.941 846.587 567.Open End PICIC Energy Fund .858 96. holdings in ordinary shares. 2003 and units / certificates of these funds are listed on Pakistan Stock Exchange.707 (9.408.854 110.746.338.975 (266.3.826) PICIC Investment Fund .70% 16.43 and Rs.89% 8.247 – – – – – – 634.1 17.550 655.Open End 17 15.662 805.966 37.Open End* PICIC Stock Fund .239 498.432) (40.154) (346.995 1.590 10.729.Open End* PICIC Income Fund .3.569 – – – – 2.618.703.418 (13.Notes to the Consolidated Financial Statements For the year ended December 31.042.227 Particulars of investment in associates . 11.306.3.979.Closed End PICIC Investment Fund .Open End* PICIC Islamic Stock Fund .754.254 186.261 67.448 5.Closed End PICIC Cash Fund .090 1.1 17.72% 46.1 17.117.584 105.111) (49. 22.722 (144.761 1.held-for-sale PICIC Investment Fund .907 4.366 1.172) (821.482.10 Particulars of investment in associates PICIC Growth Fund .Closed End 10.061.Open End* PICIC Islamic Income Fund .65% – – – – 43.800 6.130) 76.Open End PICIC Stock Fund .318 161.816 – All the above mutual funds are being managed by PICIC Asset Management Company Limited in accordance with the provision of the Non-Banking Finance Companies (Establishment and Regulation) Rules.473) As at December 31.130) (9.1 17.389.1 17.571.858 48.981.Open End* 17.111.719 182.135 545.160 362.3. 138 Annual Report 2015 .545.1 17.510.Closed End 4. *Units of Face Value of Rs.53 respectively.

1 Annual Report 2015 139 .820 20.641 33.Unlisted shares .12 Particulars of provision for diminution in value of investments Note 2015 2014 (Rupees in ‘000) 11.623 132.13 Opening balance 192.850 88.779 192.Term Finance Certificates 16.340) 6.11 Particulars of investment in unconsolidated subsidiary Financial and Management Services (Private) Limited** 88. 100 each The Bank has made provision against the entire amount mentioned above and the subsidiary has no assets or liabilities.561) Write off / reversal due to sale / transfer to other assets (12.587 Charge for the year Reversal for the year .850 724 724 724 724 ** Shares of Face Value of Rs.084 724 191.Impairment against investment in PICIC Investment Fund 17.779 192.411) 184. 11.445 135.265 – 192.265 215.850 (18.Term Finance Certificates 186.937 35.761) Closing balance 364.639 (11.265 Particulars of Provision in respect of Type and Segment Associates .541 724 183.3.265 Available-for-sale securities .Notes to the Consolidated Financial Statements For the year ended December 31. 2015 Number of shares held Total carrying value 2015 2015 2014 2014 (Rupees in ‘000) 11.Listed shares / units .125) (11.159 Subsidiary 183.971 364.808 180.979 (2.

588 47.178 A2 / A** ** – – 4.544.197 – 86.000 100 16.272 * At cost / breakup value since market value is not available.989 ** AA * ** AM2 ** ** ** 5.816 – 248.417 – ** AM2** ** ** – ** AA– AAA ** 146.813 AA** AAA+ AAA (SO) ** .730 433.294 51.690 229 34.906 2.Notes to the Consolidated Financial Statements For the year ended December 31. 2015 2015 2014 (Rupees in ‘000) Rating 11.730 1.231 – Term Finance Certificates Askari Bank Limited Azgard Nine Limited Bank Alfalah Limited Engro Fertilizer Limited Pakistan Mobile Communications Limited Summit Bank Limited Telecard Limited – – 249.375.127.078.788 2.000 100 22.921 Sukuk Bonds Unrated Unrated Unrated A+ 14.658 – – Ordinary shares of Unlisted Companies Central Depository Company of Pakistan Limited National Investment Trust Limited Pakistan Textile City (Private) Limited SWIFT Islamabad Stock Exchange Limited * * * * 5.000 30.764 2.at Market Value Federal Government Securities Market Treasury Bills Pakistan Investment Bonds Defense Savings Certificates 74.093.438.178 * A1 / A ** 25.985 10.433 Unrated Unrated Unrated A+ Cumulative Preference shares Pak Elektron Limited (PEL) Galaxy Textile Mills Limited 25.269 31.172 – Ordinary shares of Listed Companies Agritech Limited IGI Insurance Limited Tariq Glass Industries Limited 5.758.807 470.658 111.284 – 235. ** Rating not available 140 Annual Report 2015 47.973 2.14 (Rupees in ‘000) Rating Quality of available-for-sale securities .000 30.

264 (15. as stated in note 6.028.008.337 million) representing unrealized exchange gain.708 111.961) 161.994 93.379 107.764 21.359.561.935 (352.746 1. running finance.3 127. 2015 2014 12.640 – – (347.005 2.919.192 210.1 In local currency In foreign currencies 12.2 Short term (for up to one year) Long term (for over one year) 12.521.Specific .813) (94.234 1.1.Notes to the Consolidated Financial Statements For the year ended December 31.678 181.206 441.4 135.805.656.749.15.1 Leases includes non-performing loans of Rs.601 – – – 1.904 2014 Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) 1.548.gross Provision against non-performing advances .468.2.3.373 million) against which provision of Rs.540 29.653.450.1. .885.3 1.372) 117.247 2.1 This includes a sum of Rs. 72.668.087 138 700 838 1.625 Net investment in finance lease 2015 Not later Later than than one one and less year than five years Over five years Total (Rupees in ‘000) Lease rentals receivable Residual value Minimum lease payments Financial charges for future periods (including income suspended) Present value of minimum lease payments 1.487 million (2014: Rs. 2015 Note 12.980.174.204.024 96. 1.net of provisions 12.644.453 (331. 1.in Pakistan 12. 2015 2014 (Rupees in ‘000) ADVANCES Loans. which has not been recognized as income and deferred in these consolidated financial statements.947 million (2014: Rs.736 3.237 831 1.095.861 117.972 397.494 Advances .653.972 6.718.General Advances .776 419.126 2.528.588.625 105.625 (23.1 128.852 134.588) 1.024 (24.068.090.484 135.428.653. etc.2.in Pakistan Bills discounted and purchased (excluding Treasury Bills) Payable in Pakistan Payable outside Pakistan 12.466.030) (23.411.186. in accordance with the policy of the Bank.234 43.574 12.658) (154.2 Particulars of advances (Rupees in ‘000) 12.805.028.028.024 117.190 million) has been held.904 1.749.5 (24.976.318) 12.549) 1.673.746 12.850) (7) (381.556.010 161.599.367 177.332) (28.989 5.653 135. Annual Report 2015 141 .562.809 468. cash credits.635. 72.097.316 7.131) 110.337 million (2014: Rs.623.895 48.880 1.189) Present value of minimum lease payments 1.316 Net investment in finance lease .985.

204.944 3.024 29.131 23.054 – 23.920 24.204.028) 1.204. 2015 12.470.322 179.204.281 million). 1 dated October 21.262 406.017.768) 199.058.813 94.270.658 2.104.529 (2.557.262 406.131 12.353 228. 2014: Rs.530.495.350 (2.805 3. 06 of 2014 dated June 26.225 24.353 1.179 _ 25.270.318 – 94.678. 29.303 29.805 470.650 228.318 23.353 228.628 442.162 1.885.530.956 442.058. 882.813 2.173.658 2014 Classified Advances Domestic Overseas Provision Required Total Domestic Overseas Provision Held Total Domestic Overseas Total (Rupees in ‘000) Category of classification OAEM* Substandard Doubtful Loss 40.262 406.433 470.768) 139.134.956 442.511.139 25.303 23. 28.204.417.920 24.372 – 24.104.086) – 24.383.734.980.530.1 In accordance with BSD Circular No.024 22.997 (2.054 – 60.885.949 406.885.658 22.6 Amount transferred from / (to) other assets / other liabilities Closing balance 179.590.033 23.4 Advances include Rs.196.980.058. 2014: Rs.670 (124.813 _ _ – – – 3.372 – 154.173.058.333.397 2.318 9.429 23. the specific provision against non-performing advances would have been higher by Rs.Notes to the Consolidated Financial Statements For the year ended December 31.650 1.184 23.303 23.033 23. total FSV benefit erosion resulted in decrease in profit before tax of Rs.1 Particulars of provision against non-performing advances . 2. the cumulative FSV benefit recognized in respect of customers under Corporate / Commercial Banking is Rs.590 1.184 _ _ – – – 40.628 25. During the year ended December 31.707.658 25. 2011 issued by the State Bank of Pakistan.353 228.4.204.131 2.196. Had the benefit under the said circular not been taken by the Bank.2 As per the revised Prudential Regulations issued for the Corporate / Commercial Banking vide BPRD Circular No.813 _ _ – – – 3.030 9.Net (includes recovery of earlier written-off Retail loans) 23. which have been placed under nonperforming status as detailed below: 2015 Classified Advances Domestic Overseas Provision Required Total Domestic Overseas Provision Held Total Domestic Overseas Total (Rupees in ‘000) Category of classification OAEM* Substandard Doubtful Loss 37.429 23.303 23.780 390.813 3.042 million.224 24.429 23.175 12.658 154.501 (124.030 23.currency wise In local currency In foreign currencies 142 Annual Report 2015 .658 _ _ – – – 2.980.179 – 22.417.658 22.888.224 _ _ – – – 37.956 1.784 28.813 *OAEM pertains to small enterprises. 2015.590 1.813 – 94.584 million (December 31. 12. 2014.359.224 million (2014: Rs.017.417.086) 69.772 23.470.397 3.162 2.885.658 22.239 million (December 31.760.098 390. 934.428 million) and is not available for distribution of cash or stock dividend / bonus to employees.920 28.772 23. the Bank has availed the benefit of Forced Sale Value (FSV) against the non-performing advances.017.658 – 154.273.590 1.885.318 60.590 2.949 25.658 _ _ – – – 2.760.536.814 827.429 25.417.732.678.885. The FSV benefit recognized will not be available for the distribution of cash and stock dividend to shareholders.784 23.225 24.885.943 (2.956 442.134.670 94.920 24. 12.5 Particulars of provision against non-performing advances Note Specific 2015 General Total Specific 2014 General Total (Rupees in ‘000) Opening balance Charge for the year Reversals Amounts written off .488.028) 1.530. 1. 728.501.229 22.173.262 827.4.184 million). 12.372 23.5.814 1.359.

057 20. managed modarabas and (Rupees in ‘000) other related parties: Balance at the beginning of the year Loans granted during the year Repayments during the year Balance at the end of the year 13.168 (872.6.455 497.222 18.232 (713.422) (371.1 1.421 126.828. associated companies etc.207 27. Note 2015 2014 Debts due by controlled firms.905 13.398 48.968 (5.446 204.202 3. 2015 is given in Annexure 1. 24.484 90. this write off does not affect the Bank's right to recover these debts from any of its customers. 1962.427) 1. the statement in respect of written off loans or any financial relief of five hundred thousand rupees or above allowed to person(s) during the year ended December 31.692.000 and above In terms of sub-section (3) of section 33A of the Banking Companies Ordinance.8 Particulars of loans and advances to directors.414 55. 500. 12.267 12. executives or officers of the Group or any of them either severally or jointly with any other related parties: Note 2015 2014 (Rupees in ‘000) Balance at the beginning of the year Additions / granted during the year Repayments / transferred during the year Balance at the end of the year 12.267 672.033.130 4.876 5.507 12.301) 39.086 2.874 2.248 (177. 500.124 84.000 (includes recovery of earlier written-off Retail loans) 12.40 million given to Chief Executive Officer of PICIC AMC which is classified as held for sale. 500.995.855 OPERATING FIXED ASSETS Capital work in progress Property and equipment 13.855 2.1 Against provisions (includes recovery of earlier written-off retail loans) Directly charged to profit and loss account 12.485.543. 2015 Note 2015 2014 (Rupees in ‘000) 12.6.462 920.572 3.2 Capital work in progress Civil works Electrical. office and computer equipment Advances to suppliers and contractors Advance for computer software Annual Report 2015 143 .877) (177.507 Details of loan write offs of Rs.510 (4.086.8.1 This includes loan of Rs.692.7 (179.874 204.1 13.491.000 and above Write offs of below Rs.422) 2.670) 124.178. However. 4.750 37.Notes to the Consolidated Financial Statements For the year ended December 31.2 Write offs of Rs.8.7 (328.774 12.696 90.7 151.1 24.726) 1.528. Debts due by directors.709 1.696 4.148) 24.6 Particulars of (write backs) / write offs: 12.267) 126.179.

914 (5. KPT filed a civil suit seeking a declaration from the High Court of Sindh to the effect that the ownership of the plot had been validly reverted to KPT.273) 18.2 Notes to the Consolidated Financial Statements For the year ended December 31.188 585.941 – 2.062 53.909 (1.944 (118.577 26. This includes a plot of land costing Rs.3 (62.130 (61.2.553 53.642 1. Meanwhile.329.2 5.162. Furthermore.144 Annual Report 2015 257.938) 38.689) 547.505) (3. 372.120. In the suit filed against KDA.284 – (230) 1.673 10% to 33% 100.634 Adjustments/ write off 13.768) – (8.447 million).064.847 (1. possession of which was taken by the Bank (formerly PICIC) in April 1983 pursuant to an allotment order by Karachi Development Authority (KDA).463 Furniture and fixtures – – 558.064.862 60.168. Subsequently.256 291. Karachi. a dispute arose with KPT in respect of construction of a boundary wall on the Plot by KPT as KPT claimed that the ownership of the land had been reverted to KPT. (the “Plot”). Clifton.634 – Accumulated as at December 31.2.884) 311. in November 2008.726 (4.742 264.208 15.423 million (2014: Rs.456 13. The Bank filed a Civil Suit against KDA before the High Court of Sindh in respect of the said unilateral cancellation of the allotment. the appeal filed by the KPT is likely to be decided by the Honorable Court in favour of the Bank.626 Buildings on freehold land Buildings on leasehold land – 1. At present.000.697 Note As at January 01.935 1.007 (128. Karachi.518) 214.171) – (230) (692) – 27.735 – – (26. These two cases are being handled by a senior lawyer.532 2. Both the Constitutional Petitions filed by the Bank have been dismissed by the Sindh High Court on 28 January 2016 against the Bank. Mushtaq A. the Bank is actively defending the cases. also in 2000. KDA cancelled the allotment unilaterally based on certain building and construction restrictions. I.370 266.I. (63. The said claim by KPT was also challenged by way of Civil Suit before the High Court of Sindh. 2015 . (131.857 million).738) 36.354.454) (3. Market value of the property based on the revaluation carried at the year end amounts to Rs. 2014 passed by the Honorable High Court of Sindh.579 1.3 Leasehold land – Additions / (deletions) 317. In 2000.336 (7.277) 173.034) 78. 2015 (33. KDA Scheme-5.377 561.048. office and computer equipment 232.658.169) – – – – Transfers to assets held for sale 10% 5% 5% – – Rate of Depreciation % per annum 2. however there is no issue over the title of the subject property. However.876) (3.626 558.822 317.103 million situated in Railway Quarters.223.457 (4. 930 million. 1.562) 1.949 million (2014: Rs.46 square yards.013 15. All the legal dues in respect of the Plot including non-utilization fees have been paid.793 211.697 Net Book value as at December 31.300) 7.1 13.010.143 1.198 159. where a tenant is claiming for the possession as tenant of an insignificant area of only 18 square feet of the plot measuring 3. 2015 This also includes a plot of land having book value of Rs. the appeal filed by KPT against the Bank is still pending before the High Court of Sindh. Karachi (the “Plot”). Advocate on behalf of the Bank. The High Court of Sindh initially issued restraining orders against KDA and KPT in the respective suits in respect of cancellation of the allotment of the Plot.695) (21.456 317.667 10% 20% 570.2. 361 million in Block-6.387 – – – Accumulated For the year / as at January (on deletion) 01.044.739 – – – – Adjustments/ write off COST Included in cost of property and equipment are fully depreciated items still in use having cost of Rs. Also as per legal opinion provided by the dealing counsel.995.441 34. both the suits were decided in favour of the Bank.495) (877) 136. KPT had no standing to claim that the ownership of the land had been reverted back to KPT. 2015 Freehold land Particulars Property and Equipment 13. Appeal filed by KDA was disposed off in favour of the Bank vide order dated March 06.172. Presently one appeal filed by KPT (276/2004) and a suit filed by KPT (1075/2008 KPT Vs CDGK and NIB Bank) are pending on the subject plot before Sindh High Court.765 6. The Bank has had a meeting with its external counsel in respect of filing an appeal before the Supreme Court of Pakistan.796.2.152) (53. Memon.265 18. Chundrigar Road.613) – – 15. 790.143 136. Leasehold Improvements Vehicles Electrical. the High Court of Sindh held that since allotment in favour of the Bank was valid therefore.891 (119. Both the decisions of the High Court of Sindh were challenged in two separate High Court Appeals by KDA and KPT. Karachi. 1.697 As at December 31.e.062.081 76. whereas. 755. 2015 DEPRECIATION / IMPAIRMENT 2015 13. i.376) 1.638 21. 2015 (Rupees in ‘000) Transfers to assets held for sale Carrying amount of temporarily idle property is Rs. the High Court of Sindh held that the action of cancellation of the allotment by KDA was improper and void.795 – 147.218) (18.369 (5. in the suit against KPT.651 1.138) – (30.669) 5.572 555.

010. office and computer equipment 162.143 1.202 449. 2014 Notes to the Consolidated Financial Statements For the year ended December 31.377 561.561 (113.030) – – – Additions / (deletions) COST – – – – – – – – – Transfers to assets held for sale 5.727 136.027.579 1.471.972 (13.573 Leasehold land Buildings on leasehold land 1.064.268 1. 2014 (Rupees in ‘000) As at December 31. 2014 DEPRECIATION / IMPAIRMENT 10% 5% 5% – – Rate of Depreciation % per annum 2.907 – – Accumulated For the year / as at January (on deletion) 01.090.625 6.855) 199.048. 2014 2014 – – – – – – – – – Transfers to assets held for sale 2.Leasehold Improvements Vehicles 4.320 (21.456 317.267 (3.757) 6.947) – (13.012) 55.463 136.638 21.694 (2.493) 24.226 24.721 518.017) 306.363) 190.697 – 2.030) 27.532 15.477) 309.478 (25.011 Furniture and fixtures Electrical.578 10% to 33% 85.634 (164.634 – Accumulated as at December 31.007 1.173 317.635 10% 20% 490.172.793 211.336 147.756 196.794 (13.064.205 (8.822) 3.828.356 213.914 232.168.341) – (119.475 833.216) 542.456 Freehold land 571.611 1.013 15.062 53.658. 2015 Annual Report 2015 145 .133 (13.626 558.401 82. 2014 (200.983 1.026) 36.658.350 55.575 (17.697 Particulars Buildings on freehold land As at January 01.642 1.833 346.000.655 15.331 14.697 Net Book value as at December 31.822 317.

House No.034 5.4 146 Annual Report 2015 Book value 1.654 438 484 652 802 200. Street # 18.445 26. Gulshan-e-Iqbal.477 128. 0. Aqib Javaid Bhatti.167 25.945 82. 2015 .632 979 2. Owais Bin Samad.13.335 Vehicles 5.396 1.700 46.152 3. 1 million or net book value exceeding Rs.810 11.805 116 Items retired from the books and claimed from the Insurance companies 1.2. 0.385 1. Maraj Pura.Block-D.502 Computer Equipment Electrical and office equipment 73.110 1.25 million 1.925 1. Waseem Mirza.649 181 8.739 2. House No.119 Vehicle 35 - - 35 - 3. House No. Particulars of buyer 1.507 79.084 1. Karachi. 18th east street.216 2014 164.138 45.123 309 541 Sale proceeds Bid Bid Bid Bid Mode of disposal Mr. Karachi Mr. Lahore. A-32 Block 10-A.368 254 Items individually having cost less than Rs. Zahid Majeed. North Nazimabad.083 1.154 Cost Electrical and office equipment Computer Equipment Description Detail of disposal of property and equipment during the year Items individually having cost more than Rs. House No.884 119 This also includes the details of PICIC AMC classified as held for sale 131.689 235 2015 Electrical and office equipments 35. DHA Phase 1.154 (Rupees in ‘000) Accumulated depreciation 1.396 49. 5.173 45. Sadiqia Colony.25 million Notes to the Consolidated Financial Statements For the year ended December 31.396 49.681 1. W-20.396 Vehicle 1.518 Furniture and fixtures Leasehold Improvements 46.273 278 2. 1 million or net book value not exceeding Rs. C-95.

354.453 1.591 – 1.923.192 – 630.354 100.075 383.726) (9.516 226.453 124.634.428. 2015 for sale 31.572 Computer Softwares Management Rights (204.192 630.453 1.113 – 1.811 – 2.735.725 – 9. 298.926.726. 2014 5.697.014 107.739 million).387) – – 2.826 10% to 50% 1.489.509 – – – – – – – Adjustments/ write off – 890. 2014 (204.693 226.020. 2015 Annual Report 2015 147 .418 1. 2014 for sale 31.09 % 8.116) 108.725 (Rupees in ‘000) 2.116 Additions / (deletions) Core Deposit Relationships Capital Loan Relationships Brand Particulars As at January 01.290.100 – 713. 2015 AMORTIZATION For the year 2015 14.31 % 9.032 – 204.792 521.453 Core Deposit Relationships Particulars As at January 01.726 2.128 1.939 1. 2015 3. 14.726. 2014 – – – – – – Adjustments/ write off COST – – – – – – Transfers to assets held for sale Accumulated as at January 01.116) – – – (204.726.116 As at December 31.693 – (204.149 94.428.– 16.099 23.726.604 – (Rupees in ‘000) 2.731 565.489.975 10% to 50% 16.726 5.7 2.630 6.116) 100.09 % Rate of Amortization % per annum 307.424 – Net Book Transfers to Accumulated value as at assets held as at December December 31. 2014 AMORTIZATION For the year 2014 8.491 – – – – – – 2.231) – – Transfers to assets held for sale Accumulated as at January 01.113 100. 2015 324.957) (1.040 124.668 5.314 6.116) 341.149 204.489.668 1.1 Included in cost of computer software are fully amortized items still in use having cost of Rs. 2015 INTANGIBLE ASSETS (387) – (387) – – Adjustments/ write off COST (1.489.013.989 124.31 % 20 % Rate of Amortization % per annum Note 6.267 1.939 1.697.7 792.668 100.314 (342) – (342) – – Adjustments/ write off (8.354 As at December 31.637 – 91.084 million (2014: Rs.744.149 2.726 – Computer Softwares 124.471. Notes to the Consolidated Financial Statements For the year ended December 31. 302.387) – (8.267 16.811 913.149 Capital Loan Relationships – Additions / (deletions) Management Rights 2.726.354.457.785 Net Book Transfers to Accumulated value as at assets held as at December December 31.726 Note 6.013.

035 9.079 640. 1987 and 1(12)/50/DM/89 dated June 1.269 22.342 291.823) (2.060) (2.2 Annual test for impairment Intangibles In the current year.329 432.164 Deferred credits arising due to: Excess of accounting base of leased asset over tax base Accelerated tax depreciation on owned assets Fair valuation of subsidiaries and associates Accelerated tax amortization on intangible assets Unrealized exchange gains Unrealized exchange losses Surplus on revaluation of securities Deferred tax assets Unrecognized deferred tax assets Recognized deferred tax assets 15. the effective date of exercise of both the options arising on related borrowings as reduced by gains arising on related advances was claimed as loss for tax purposes.304 62.572 (691.2 The unrealized exchange losses of the Bank (formerly PICIC) as on April 21. Ministry of Finance and Economic Affairs (Economic Affairs Division). growth of deposits and advances.338) (769. 148 Annual Report 2015 . through Office Memo 1(16)/50/DM/86 dated July 8.184 2.1 15.134.326) (486. Note 2015 2014 15.928) (2.507) (471.627 (185.114.278 11. 15.101 4.408) 9.1 In 1987 and 1989.055) 10. Any significant change in the key assumptions may have an effect on the realisibility of the deferred tax asset.992.604) (42.098 289. the Group assessed the recoverable amount of core deposit relationships and determined that no impairment loss exists. 1989 respectively and.126. The management has recorded deferred tax asset based on financial projections indicating realisibility of deferred tax asset over a number of future years through reversals as a result of recoveries from borrowers and realisibility of remaining deferred tax asset against future taxable profits.753.Notes to the Consolidated Financial Statements For the year ended December 31.604) (651.669) (1.812 13. 2015 14.NET Deferred debits arising due to: Provision against loans and advances Provision against other receivable Provision against balances with other banks Provision against off balance sheet Items Unused tax losses Provision against Worker's Welfare Fund Excess of accounting base of provision for bonus Excess of tax base of investments over accounting base Minimum turnover tax* 6.822. (Rupees in ‘000) DEFERRED TAX ASSETS .240. investment returns and potential provision / reversals against assets. The financial projections involve certain key assumptions such as deposits composition.101 3.583. 15.991.171 11.251 13.377) (33. the Bank (formerly PICIC) exercised its option to avail the exchange risk coverage offered by the Government of Pakistan.416. 1987.101 7.725) (760. in turn the Bank (formerly PICIC) offered the risk coverage to its Borrowers.460) (11.377) (33.359.712 – 13. interest rates.051.531.940 – – 64.397) (20.2 * Included in the unrecognized deferred tax assets.466) (174.709) (1.609 9.

2014 2014 Recognized Transfer Recognized in profit and to assets loss account held for sale – 9.609 Related to discontinued operations Continuing operations – 510.304 Excess of tax base of investments over accounting base 62.350 – 9.506 Provision against other receivable 291.101 Unused tax losses 4.812 Deferred credits arising due to: Excess of accounting base of leased assetover tax base (157.609 31.244) (1.823 – 40.359 – – – – – – – – – – – – – – (20.709) 872 Deferred tax assets 11.572 (1.001 – – – – – – – – – – – – – – – – – – 7.051.081) Unrealized exchange gains (2.991.739 Recognized deferred tax assets 9.060) (2.753.992.342 Provision against other receivable 291.042 (42.034) – – – – – – – – – – (174.644 (16.338) (11.669) 40.604) (Surplus) / deficit on revaluation of securities 261.085 Provision against Worker's Welfare Fund – Excess of accounting base of provision for bonus – Excess of tax base of investments over accounting base 152.183.487 Deferred tax assets 11.418) 812 1.184 Provision against balances with other banks 2.171 Deferred credits arising due to: Excess of accounting base of leased asset over tax base (174.184 2.101 Unused tax losses 4.719 (9.269 Provision against Worker's Welfare Fund 22.397) – (20.868) Unrealized exchange gains (2.436) 45.507) (471.164 (1.134.329) (1.472) (2.Notes to the Consolidated Financial Statements For the year ended December 31.359.251 13.304 (90.377) Unrealized exchange losses (33.060) (9.035 Excess of accounting base of provision for bonus 9.992.035 9.278 – (691.757) Accelerated tax amortization on intangible assets (1.134.035 9.089.300 (486.329 510.329 Minimum turnover tax* 432.506) – – – 602.101 4.098 289.359.184 Provision against balances with other banks 2. 2015 2015 Recognized Transfer in profit and Recognized to assets loss account held for sale 31.626.507) 7.728) – – (91.822.940 – – 64.703) (9.604) (651.126.387) Accelerated tax depreciation on owned assets (769.350 9.460) 13.226) Fair valuation of subsidiaries and associates (461.812 (663.604) 6.408) 9.164 – 11.572 (1.823 – 510.269 Accelerated tax amortization on intangible assets (11. 2014 (Rupees in‘000) Deferred debits arising due to: Provision against loans and advances 7.359 Provision against off balance sheet items 13.902) Accelerated tax depreciation on owned assets (815.034) – (913.089.342 291.416.350 10.637.709) 11.326) 63.164 297 (1.617) (10.431) 01.126.101 3.750 207.460) (11.140 (567.741 (760.034) – – – 9.164 Related to discontinued operations Continuing operations (13.251) – (1.377) (33.725) 1.034) (913.586) (184.822) Recognized deferred tax assets 11.446) – – – – – – (913.377) – (33.408) 442.477) – (913.164) – (108) – 354.928) – (2.184 22.251 Provision against off balance sheet items 13.656. 2015 15.551) 190.467) Unrecognized deferred tax assets (1.823 – (185.183.712 – 13.466 Unrecognized deferred tax assets (566.466) 40.079 640.644 * Included in the unrecognized deferred tax assets. 2015 (Rupees in ‘000) Deferred debits arising due to: Provision against loans and advances 7.3 Movement in temporary differences during the year 01.304 62.880 Minimum turnover tax* 242.992.269 22.116) – – 6.338) (769.377) – Unrealized exchange losses (33.979) – – (162) 383.440 Fair valuation of subsidiaries and associates (471.992.527.031) (197.416. Annual Report 2015 149 .604) – Surplus on revaluation of securities (651.168.991.329 432.811 (111.

3. Subsequently.4 16. deposits.000 425.409 148.458.664 476.350.086 44.545.2 16.005.597 545.114 (342.726) 7.276 2. advance rent and other prepayments Advances Deposits Advance rent Other prepayments 16.416) (82. 5.421.745 16.400. for purposes of conversion of foreign currency amounts.760 257.774 545. and all income accrued or due in 1971 but not received in that year and interest accrued but not due on borrowings in 1971 was eliminated.891 9. generally speaking.043 million (2014: Rs. 1. such amounts were eliminated from the books of the Bank (formerly PICIC) by reducing an equivalent sum from its related foreign assets in that area.3 16.287 – 224.801 million (2014: Rs.575 1.net of provisions 2015 2014 (Rupees in ‘000) 16.311 994.4 All the assets and liabilities as of November 30.161.272 million) has been made against difference between cost and fair value.993) (1. 16.684) 9.357. where the settlement agreement signed with borrowers entails a buy back option.Notes to the Consolidated Financial Statements For the year ended December 31.3 16.744.001 3.776 38.2 Advances.745 1. including amounts previously identified by the Bank (formerly PICIC) as its foreign currency liabilities in respect of Bangladesh. 1971 were used. The above mentioned values include properties having market value of Rs.net Stationery and stamps on hand Advance for purchase of term finance certificates and sukuk bonds Assets in respect of Bangladesh Insurance claim Management fee receivable Others Liabilities in respect of Bangladesh Rupee Borrowings from Government of Pakistan in respect of Bangladesh Provisions held against other assets Other assets . consequent to the assuming by Bangladesh of certain foreign currency loan obligations as of July 1.1 & 16. 150 Annual Report 2015 .480 145.net Non-banking assets acquired in satisfaction of claims Non-banking assets acquired in satisfaction of claims with buy back option with customer Unrealized gain on forward foreign exchange contracts .621 96.979 (82. OTHER ASSETS Income / mark-up accrued Local currency Foreign currencies Advances.076.207 951. 2.261.416) 1. 16.157. 172.854 335.215. the parity rates ruling prior to August 15.341 4.390 million).086 1.5 2.993) (1.409 186.828 42.952 11. Provision of Rs. 1974.1 This includes Rs. 5. deposits.741 million (2014: Rs.872 284.6 16.219. advance rent and other prepayments Advance taxation .947 million) acquired through settlement agreements.618.979 130.471 million (2014: Rs.488 2.217 285. 2015 Note 16. 2015 was Rs.081 41. The market value of the subject assets as of December 31.800 425. 2.323 177.300. 151. 1971 clearly identifiable as being in or in respect of the areas now under Bangladesh and referred to above were segregated as of that date and in such segregation.522 31.4 16.351 252.324 476.174 (342.417.399 135.671 million) in respect of related parties.3 Represents cost of land and building acquired by the Bank against advances and held for resale.

82 million would be deemed to have been allocated out of the rupee loans by the Government and that such allocated amount together with the rupee finance being provided by the Government including any interest thereon would not be recovered from PICIC until such time as PICIC recovers the related assets from Bangladesh and only to the extent of such recovery.205) – 1.Notes to the Consolidated Financial Statements For the year ended December 31.421.15. However.6 This includes a sum of Rs. Accordingly the assets and liabilities of PICIC AMC including mutual funds (units of which are held by PICIC AMC) have been classified as 'Assets held for sale' and 'Discontinued operations' and carried at lower of carrying amount and fair value less cost of disposal. while initially agreeing to provide the rupee finance required for discharging current maturities of foreign currency borrowings and interest related to Bangladesh.466 million) representing unrealized exchange gain. in accordance with the policy of the Bank. Accordingly.04%) of PICIC Investment Fund (PIF). which has not been recognized as income and deferred in the financial statements.1 NIB Bank Limited and HBL Asset Management Limited (HBLAML) have signed a Share Purchase Agreement (SPA) for the sale of NIB's 100% shareholding in PICIC AMC. commitment or contingent liability as appearing in the books relating to Bangladesh) have been treated as liabilities in respect of Bangladesh. 30. 30. following an agreement reached between PICIC and the Government of Pakistan during 1976.466 million (2014: Rs. as stated in note 6. in view of the aforesaid agreement no interest is being accrued on the allocated amount of rupee loans or in respect of the rupee finance provided by the Government related to PICIC’s assets in Bangladesh nor is it considered necessary to provide for any loss that may arise in respect of PICIC’s assets in Bangladesh. the Government has agreed that it would continue to provide the funds for servicing PICIC’s foreign currency liabilities relating to Bangladesh and has further agreed that an amount equivalent to the rupee assets in Bangladesh financed from PICIC’s own funds not exceeding Rs.684 16.147) (4.300. 2015 Arising from advices received from the lenders and as a result of diversion of shipments and of the meeting of certain contingent liabilities. 17. 17. such allocated amounts.532) (9.32% of 34. the difference between the actual amount of rupees required to remit maturities of foreign currency borrowings in respect of Bangladesh and the figures at which they appeared in the books and the interest paid to foreign lenders has been treated as increasing the rupee assets in that area.300.684 141. Furthermore. there have been certain modifications to the foreign currency advances relating to Bangladesh.376 (9. The Government of Pakistan.2 Conditional on closing of the transaction described in note 17.5 Particulars of provisions held against other assets Opening balance Charge for the year Reversals Reversal on disposal of non-banking assets Write offs Transfer to / from advances / investments Closing balance 1.394 – (16.661. ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS 17.1 the Bank has signed an agreement with Habib Bank Limited (HBL) to sell 48.000) – (7. 2015 2014 (Rupees in ‘000) 16. Annual Report 2015 151 . did not accept any responsibility for PICIC’s assets in that area.772) 1.177. Further. Accordingly the investment in PIF is classified as 'Assets held for sale' at the lower of carrying amount and fair value less cost of disposal.612 149.800 units (50. together with the rupee finance being provided by the Government for discharging the current maturities of foreign currency borrowings (including the interest and charges thereon and any exchange difference between the final rupee payment and the amount at which the liability.726 1.

444 4.3.3 – – – 2.Open end PICIC Income Fund .3.2 17.261 67.3.3.1 17.730.521 (180.Closed end Impairment against investment in PICIC Investment Fund PICIC Cash Fund .872 48.628 2.370 1.971) 634.1.350) 107.774.1.2 17.3 2015 (Rupees in ‘000) Assets and liabilities held for sale Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax liabilities .Open end PICIC Islamic Stock Fund .254 186.399 29.Open end Investment in associates Investment held by PICIC Energy Fund in ordinary shares of listed company 17.1 and 17.Open end PICIC Islamic Income Fund .558.3.160 1.730.2 955.550 655.Notes to the Consolidated Financial Statements For the year ended December 31.415 Above assets and liabilities includes assets and liabilities of PICIC AMC. 152 Annual Report 2015 .3.Open end PICIC Stock Fund .1 815.1 This represents impairment recorded against portion of investment in PICIC Investment Fund which has been classified as held for sale. PICIC Energy Fund and associates which are classified as held for sale due to arrangement mentioned in the note 17.1.914 Liabilities Other liabilities 17.481 4.719 182.4 642.1 Investments Note 2015 (Rupees in ‘000) Associates PICIC Investment Fund . 2015 Note 17.727.3.816 17.570 (40.444 17.net Other assets 17.3.

421 57.000 424.000.862 56.257 Annual Report 2015 153 .913 54.370 17.479 233.Notes to the Consolidated Financial Statements For the year ended December 31. 2015 Accumulated amortization as at December 31.625 112. 2015 Accumulated depreciation as at December 31.000 1.000 2.3 Intangible assets Cost as at December 31.630 – Net mark-up / interest income 1.570 2015 2014 (Rupees in ‘000) Discontinued operations Mark-up / return / interest earned Mark-up / return / interest expensed 1.028 2.3.515 297 102.2 Operating fixed assets Cost as at December 31.345 443.Current .100.028 – 2.4 1.917 96.972 221. 2015 14 14 Net book value as at December 31.755 34.115 21.138 33. 2015 13.768 Net book value as at December 31. 2015 17.588 3.3.750 Total 123.630 394.Deferred 87.4. 2015 29.077 17.247 19. 17.615 – 3.2 13.3.2 Particulars of investment in Listed Ordinary Shares Held-for-trading securities Attock Petroleum Limited Engro Powergen Qadirpur Limited Hub Power Company Limited Kot Addu Power Company Limited Lalpir Power Limited Nishat Chunian Power Limited Nishat Power Limited Oil & Gas Development Company Limited Pakistan Oilfields Limited Pakistan Petroleum Limited Pakistan State Oil Company Limited Shell Pakistan Limited 244.502 (13.4 This includes Rs 474.859 398.558 6.744 – – 438.765 216.344 211.500 297.716 NON MARK-UP / INTEREST INCOME Fee.000 5.3.332 15.853 – 11.207 – 5.714 708.945 955.812 89.net Unrealized loss on revaluation of investments classified as held-for-trading Other income Total non mark-up / interest income NON MARK-UP / INTEREST EXPENSES Administrative expenses Other provisions / write offs Other charges Total non mark-up / interest expenses Share of profit of associates Profit before taxation 17.546 109 10.727.887 705.957 8.728 Taxation .177 100.725 million payable to Non-controlling unit holders of PICIC Energy Fund.2 63.100 212.031) 87.999.034 397. 2015 2015 Number of shares held Note Market value of investment (Rupees in ‘000) 17.260 220.919 148.524 443.336 532.471 Profit after taxation 109.1 197.735. commission and brokerage income Dividend income Gain on sale of securities .387 1.950 55.700 137.500.260 161.1.000 2.628 17.

676.741 62.4 19.740.196 1.894 19.894 17.8 .528 85.073 26.1 2015 2014 (Rupees in ‘000) Share of profit of associates PICIC Cash Fund PICIC Islamic Income Fund PICIC Stock Fund PICIC Islamic Stock Fund 1.Notes to the Consolidated Financial Statements For the year ended December 31.348 415.073 26.771 (81.3 19. BILLS PAYABLE In Pakistan Outside Pakistan 19.576.286 - 11. 2015 Note 17.564 2.240 95.469.650.339 2.976 (3.668 61.165) 12.636 35.754.288 2.141 26.589) - 227.104 85.750.7 6.668 61.458 2.877 106.850 259.741 62.676.421 57.092 3.141 (446.894 85.818) 40. BORROWINGS In Pakistan Outside Pakistan 19.286 916.645.668 162.790 5.650.527 133.5 19.534.970 3.6 10.954 1.418.469.4.618.331.593 19.5 Cash flows from discontinued operations Operating cash flows Investing cash flows Financing cash flows 18.750.698 85.906.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 19.584 342 - 15.716 78.940 85.381.677 982 64.216 2.2 Details of borrowings .836 162.895 11.281.732.640 51.450.750.741 62.676.secured / unsecured Secured Borrowings from SBP under Export Refinance Scheme Long Term Financing Facility Long Term Finance for Export Oriented Projects Repurchase agreement borrowings Unsecured Call borrowings Overdrawn nostro accounts Foreign borrowings payable in local currency Other borrowings 154 Annual Report 2015 19.231.533) (2.

197.6 These borrowings are subject to mark-up rates ranging from 6.286 million in respect of liabilities against German credit representing principal amount of loan and Rs.102.3 Borrowings from SBP under Export Refinance Scheme are subject to mark-up rates ranging from 1.25%) per annum with remaining maturity upto two months. 96.386 41. 96.011 million) which has been netted off against unrealized exchange gain (note 16) as it is payable when recovered from sub-borrowers. the Bank is contending that any amount of principal and interest is payable to the GoP only when recovered from the related sub-borrowers.Notes to the Consolidated Financial Statements For the year ended December 31.50% to 10.399. who have availed the related German credit.948. 2006.10% to 6. The principal amount has been accounted for and shown as payable to the GoP whereas interest has been accounted for in Other Liabilities (note 22).818. This also includes unrealized exchange loss of Rs.5% to 3.00% to 6.708 38.912 382.581.70% (2014: 9. 2015 19.5%) per annum maturing within six months.800 20.400 5.5% (2014: 5. 19.00% (2014: 5.643 105.1 Particulars of deposits In local currency In foreign currencies Annual Report 2015 155 .6% (2014: 6.5% to 8.5 Borrowings from SBP under Long Term Finance for Export Oriented Projects are subject to mark-up rate of 5.302.8 The Government of Pakistan (GoP) has claimed an amount of Rs. 19.90%) per annum with remaining maturity upto one month.102.381 633. 19.4 Borrowings from SBP under Long Term Financing Facility (LTFF) are subject to mark-up rates ranging from 2.684.258 7. 2015 2014 (Rupees in ‘000) 20.011 million (2014: Rs.605. who have availed the German credit.456 Financial institutions Remunerative deposits Non-remunerative deposits 19.0% to 8.50% (2014: 9. Government securities have been given as collateral against these borrowings.151.800 122.643 105.5% to 6.623.non remunerative Margin accounts 33. However.664 130.081.399. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Current accounts .179 7. 19. 162.444 million as interest thereon till June 30.655 510.020 26.479.50% to 9.463 35.7 These borrowings are subject to mark-up at rates ranging from 6.334.6%) per annum with remaining maturity upto ten years.00%) per annum with remaining maturity upto four months.621 130. 45. 19.679 33.385 97.719 669.

Clause Neither profit nor Principal can be paid (even at maturity) if such payments will result in a shortfall in the Banks' Minimum Capital Requirements (MCR) or Capital Adequacy Ratio (CAR) or increase any existing shortfall in MCR and CAR. the Bank will be required to comply with the SBP instructions prevalent or issued at the time. in part or full. Unsecured 2015 2014 (Rupees in ‘000) 4.198.035 million Rating A+ (A plus) Tenor 8 years from the Issue Date Redemption Fifteen equal semi-annual installments of 0. no cap) rate of return at Base Rate +1.15% (The Base Rate is defined as the average “Ask Side” rate of the six month Karachi Interbank Offered Rate (“KIBOR”)) Security The TFCs are unsecured and subordinated to all other indebtedness of the Bank including deposits Issue Date June 19.197. Loss Absorbency The TFCs will be subject to loss absorbency clause as stipulated under the "Instructions for Clause Basel III Implementation in Pakistan".Notes to the Consolidated Financial Statements For the year ended December 31.195 Mark-up Floating (no floor.516 4. Maturity June 19. subject to the SBP approval and not less than forty five days prior notice being given to the Trustee and the Investors.195.02% of the issue amount for the first ninety months followed by remaining 99. 2014 Issue Amount Rs. Lock-in.Listed. SUB-ORDINATED LOANS Term Finance Certificates . 4. 156 Annual Report 2015 . In case the lock-in clause goes into effect. 2022 Call Option The Bank may call the TFCs. 2015 21.70% on maturity at the end of the ninety sixth month. on any profit payment date from the 60th month from the last day of public subscription and on all subsequent profit payment dates.

000.534 383.430 42.302.302.500 78.591.164 10.417 6.648.027 7.902.293 5.000 12.910 438.000 32.544 3.000 260.000.Managed Fund Payable to Worker's Welfare Fund Payable to defined benefit plan Security deposits against lease Provision against off balance sheet items Payable to non-controlling unit holders of PICIC Mutual Funds Withholding tax / duties payable Advance against sale of properties Advance arrangement fee against syndicated loans Others 23.364 37.509 5.728.371 258.512 23.1 The holding company Bugis Investments (Mauritius) Pte.591.105.Notes to the Consolidated Financial Statements For the year ended December 31.278.095 48.952 43.220 95.512 103.591 10.005 57.851.430 95.665 SHARE CAPITAL 23.708 37.164 2014 Issued for consideration other than cash (under schemes of amalgamation) Issuance of shares on discount 120.000 (Rupees in ‘000) Ordinary shares of Rs.259.598) ordinary shares.027 32.2.013 734.598 (2014: 9.2 Issued. Annual Report 2015 157 .028.771 68. subscribed and paid up Fully paid up ordinary shares of Rs.771 68.789.463.902.105.271.244 62.000 120.124.241 103.000. 10 each 2015 2014 (Number of shares) 3.860 147.851.000.453 9. 10 each 23.648.5 667.426 61.718 462.124.277 15.278.680 87. OTHER LIABILITIES Mark-up / return / interest payable in: Local currency Foreign currencies Unearned income on inland bills Accrued expenses Insurance premium payable Advance from borrowers for settlement of loans Unclaimed dividend Borrowing from Government of Pakistan Branch adjustment account Unrealized loss on forward foreign exchange contracts Security and other deposits Payable to IBRD .659 Fully paid in cash 764.1 Authorized 2015 2014 2015 (Number of shares) 12.611 598.220 114.993 60.028.728.088 10.259.694 43. 2015 Note 22.064 382.129 2. 2015 2014 (Rupees in ‘000) 36.037 66.824.417 6.110 2.539 229.436 391.000.659 3.241 7.632 3.231 71.789.978 400.497 57.824.095 92.000.244 62.088 764. Limited holds 9.

6 Commitments in respect of forward exchange contracts Purchase Sale 25.4 Other contingencies Claims against the Bank not acknowledged as debts 25.872 15.370 266.643 The Bank makes commitments to extend credit in the normal course of its business but none of these commitments are irrevocable and do not attract any significant penalty or expense if the facility is ultimately withdrawn except commitments mentioned above.972) (644.471 44.926 25.204 22.528 22.250.119 12.795) 248.809.105.5 Commitments in respect of forward lending Commitments to extend credit – 2.486 19.446 415.818.808.556 – 2.655) 21.894 24.547 25.360.1 Direct credit substitutes Contingent liability in respect of guarantees given favouring: Government Financial lnstitutions Others 610.122 121. SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS . 2015 2014 (Rupees in ‘000) 25.Notes to the Consolidated Financial Statements For the year ended December 31.265.348 382.749 24.133 2.000 – 14.743 (5.761.342 (133.543.749 – 22.748.860.668 20.302.147 1. CONTINGENCIES AND COMMITMENTS 104.109.943 11.188 29.568 34.507 26.3 Trade-related contingent liabilities Letters of credit Acceptances 25.930 17.721 – 1.019.537 1.2 Transaction-related contingent liabilities / commitments Guarantees given in favour of: Government Financial Institutions Others 25.276.228 22.255 153.332 1.951.228.125 1.032 8.749 624.994 261.631.098 42.7 Commitments for the acquisition of operating fixed assets 158 Annual Report 2015 8.NET Surplus on revaluation of available-for-sale securities Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Investment in shares of listed companies Share of surplus on revaluation of securities of associates Related deferred tax liability 25.206 .880.860.618.426.175.530 2.123.806 1. 2015 2015 2014 (Rupees in ‘000) 24.778 2.749 – 22.

which the management of the Bank in discussion with their tax consultants believes to be unjustified and not in accordance with the true interpretation of the law. PRA/AM. These disallowances may result in additional tax aggregating to Rs. representing the Bank. Management is confident that the eventual outcome of the cases will be in favour of the Bank.005 million. Accordingly. 2001 amounting to Rs. Annual Report 2015 159 . 700 million was imposed by the Competition Commission of Pakistan (“the Commission”) on all the member banks utilizing the 1 link Switch on account of uncompetitive behavior and imposing of uniform charges on cash withdrawal for off network ATM transactions. The management is expecting a favourable outcome of the petition. 1. The tax authorities have made certain disallowances including additions on account of proration of expenses against dividends and capital gains. During the year ended 2013. PICIC AMC appeals in respect of above tax years are pending before Appellate Tribunal Inland Revenue (ATIR). 2015 25. a combined Appellate Order for Ex-PICIC pertaining to tax years 2003 through 2007 was issued by Commissioner Inland Revenue (Appeals) – CIR(A) in which the aforementioned expenses were allowed. The management based on the advice from tax advisor is confident that the eventual outcome of the above appeals will be in favour of the PICIC AMC. – The income tax returns of PICIC AMC have been filed up to and including the tax year 2015 relevant to the financial year ended June 30. Consequently an appeal was filed with the Competition Appellate Tribunal (“Tribunal”) which has set aside the order of the Commission. 2012 with effect from May 22. The Court has ordered suspension of the show cause notice till the next hearing of appeal in their order dated July 10. – Punjab Revenue Authority issued Show Cause Notice No. The concerned banks filed a constitutional petition before the High Court of Sindh.70/14 dated June 20.8 Other Contingencies A penalty of Rs. sales tax under Punjab Sales Tax Act 2012 of Rs. In respect of this the PICIC AMC has filed a petition on July 8. 2014. 2014 in the High Court of Sindh challenging the above notice.Notes to the Consolidated Financial Statements For the year ended December 31.9 Tax Contingencies – The income tax returns of NIB Bank Limited have been filed up to and including tax year 2015 relevant to the financial year ended December 31. 1. which has suspended the order of the Commission. However.264 million has not been recorded by the PICIC AMC.370 million). While finalizing the assessments for tax year 2006 and 2007. from tax years 2004 through 2008 for Ex-PICIC Commercial Bank Limited (Ex-PCBL). the tax authorities have filed appeal with Income Tax Appellate Tribunal (ITAT) against above combined Appellate Order. disallowances of interest and administrative expenses and renovation expenses incurred on rented premises (allowed historically) pertaining to tax years 2003 through 2008 for Ex-Pakistan Industrial Credit and Investment Corporation Limited (Ex-PICIC). tax years 2003 and 2004 for Ex-National Development Leasing Corporation Limited (Ex-NDLC) and from tax years 2004 through 2008 for NIB Bank Limited. The management in consultation with external legal counsel. The Commission has preferred an appeal before the Supreme Court. 36. Appeals filed against orders are pending at various appellate forums. which has been admitted for hearing and will be fixed by the concerned office of the Supreme Court. The Bank’s share in this penalty is Rs. 2015. 50 million. 2013 on management fee earned in Punjab. the tax authorities have made disallowance in respect of dividend income claimed as exempt under clause 103 of Second Schedule of Income Tax Ordinance. 25. 17. 2014. is confident that they have strong grounds to contest this penalty and are optimistic that the outcome will be decided in favour of the Bank.370 million (2014: Rs. 2014 to PICIC AMC requiring it to pay Sales Tax under Punjab Sales Tax on Service Act.

224. 10. 9.690 11.420 32.719.221 2.726 14.308 1.896.429 5.654 3.014 5.078 1.043 6.771 4.451.196.086.148.099 14.653 15.582 160 Annual Report 2015 – 89.368 136.067 – 28.565 372.083 462.693.899.248.641 162 5.794 4.215.126 763.793 320 471.395 8.139.138 1.512 26.787 509.006 3.245 574.321 24.Notes to the Consolidated Financial Statements For the year ended December 31.653 6.255 OTHER INCOME Gain on disposal of property and equipment Rent Gain on trading liabilities Recovery against written off assets Gain from insurance against loss of fixed assets-net Gain on sale of non-banking asset acquired in satisfaction of claims Element of income / (loss) and capital gains / (losses) included in prices of units issued less those in units redeemed-net (5.057 2.674 GAIN ON SALE OF SECURITIES .071.861 42.106 – 7.717 45.608 39.618 1.871 73.949 10.737.578 . MARK-UP / RETURN / INTEREST EARNED On loans and advances to customers and financial institutions On investments in: Held-for-trading securities Available-for-sale securities Held-to-maturity securities On deposits with financial institutions On securities purchased under resale agreements On call money lending 27.769 54.457 5.611 64 36.007.000 22.681 5.NET Market Treasury Bills Pakistan Investment Bonds Term Finance Certificates Ordinary shares of listed companies Units of mutual funds Sukuks 29.769 MARK-UP / RETURN / INTEREST EXPENSED Deposits and other accounts Securities sold under repurchase agreements Other short term borrowings Long term borrowings 28.308) 41. 8. 2015 2015 2014 (Rupees in ‘000) 26.573 10.007.026 919.

2 No donation was paid during the year.730 825 1. 2015 Note 2014 (Rupees in ‘000) 30.1 Auditors' remuneration Audit fee including fee for branch audit Audit fee of consolidated financial statements Review fee Special certifications and sundry advisory services Out-of-pocket expenses 4.036 27. taxes.880 12.621 67.905 300.098 30.454 339. etc.449 162.505 455.096.819 6.847 209. 31.084 944.1 2. etc.489 32.927. conveyance and vehicles running Security services Fixed assets written off Others 2015 36.403 95.081 15.024 14.996 39.125 7.646 6.293 8.272 5.006.351 144.999 11.737 1.877 66. allowances and other expenses Brokerage and commission Rent.905 17.428 8.971.184.333 43.364 776 7.773 146. insurance.428 304.210 300 363 4.863 136.506 13. ADMINISTRATIVE EXPENSES Salaries.083 2.205 108.634 177.075 30.941 18.210 1. Legal and professional charges Communication Repairs and maintenance Stationery and printing Advertisement and publicity Fees and subscriptions Auditors' remuneration Depreciation Amortization Travelling.Notes to the Consolidated Financial Statements For the year ended December 31.628 46.370 176.994 65. Charge for defined benefit plan Contribution to defined contribution plan Non-executive directors' fees. electricity.4 30.778 487.917 46.919 8.387 41.444 195.912 323. allowances.730 825 1.165 96. OTHER CHARGES Penalties of the State Bank of Pakistan Operational loss Worker’s Welfare Fund Impairment charge on tangible fixed assets Annual Report 2015 161 .505 – 96.698 – 60.818 105.371 21.

302.Notes to the Consolidated Financial Statements For the year ended December 31. The benefits under the gratuity scheme are payable in lump sum on retirement at the age of 60 years or earlier cessation of services.03 (Rupees in ‘000) 34.954) 109.1 This includes charge for minimum tax payable under the Income Tax Ordinance. CASH AND CASH EQUIVALENTS Cash and balances with treasury banks Balances with other banks 8 9 10.790 423.10) Earnings per share . Note 33.499 26 2.629 8.093 (Number) 35.discontinued operations 0.851 10.390.851 197.01 0. STAFF STRENGTH Permanent Temporary / on contractual basis Group's own staff strength at the end of the year Outsourced Total staff strength 2.266 493 2.098 (Number in ‘000) Weighted average number of ordinary shares outstanding during the year 10.063.183.continuing operations 0. The benefit is equal to one month's last drawn basic salary for each year of confirmed service. DEFINED BENEFIT PLAN 36.329 32.basic / diluted . 36.697.063.247 19 2.431 215.001 10. 2015 Note 2015 2014 (Rupees in ‘000) 32. 2015 2014 (Rupees in ‘000) BASIC / DILUTED EARNINGS / (LOSS) PER SHARE Attribuatble to equity shareholders of the Bank: Profit / (loss) after taxation from continuing operations 2.basic / diluted . subject to a minimum of five years of service. 2006.079 Profit after taxation from discontinued operations (1.418 8.1 The Bank operates an unfunded gratuity scheme covering all eligible employees who have attained the minimum qualifying period of five years.524 344.425.096 The above staff strength includes staff of PICIC AMC which is classified under assets held for sale and discontinued operations.851 (Rupees) Earnings / (loss) per share .302.759 2.359 – 1. and for this reason.052.525 571 3. reconciliation of tax charge to the accounting profit has not been presented. TAXATION For the year Current Prior years Deferred 32.650.543 1.1 207.645.675 586. 162 Annual Report 2015 . Eligible employees are those employees who have joined the service of the Bank on or before March 31.086 11. 2001.477 1.24 (0.

910 60.897 60.2 Principal actuarial assumptions The actuarial valuation is carried out periodically.740 (3.806) Closing balance 57.50% 9.718 12.888 58.25% Based on State Life Insurance Corporation of Pakistan SLIC (2001-2005) Ultimate Mortality table 10.718 56.078) 7.178 12.Salary increase rate .7 Sensitivity Analysis on significant actuarial assumptions: Actuarial Liability – – – – Discount Rate + 0.045 55.910 55.205 (4.595) Actuarial gain recognized on remeasurement of obligation (recognized in OCI) (5.027 7.047 58.6 57.818 13. The main assumptions used for actuarial valuation are as follows: Gratuity 2015 2014 .Mortality rate 9. 2015 using the "Projected Unit Credit Method".595) (3.469 6.349 6.806) 60.399 60.4 Charge for defined benefit plan Current service cost Interest cost Cost recognized in the profit and loss account Actuarial gain on remeasurement of obligation (recognized in OCI) Total defined benefit cost for the year 36.469 (10.678 62.50% Based on State Life Insurance Corporation of Pakistan SLIC (2001-2005) Ultimate Mortality table .Wise withdrawal rates Note 2014 2015 (Rupees in ‘000) 36.Notes to the Consolidated Financial Statements For the year ended December 31.718 6.910 60.0.027 7.5% Discount Rate .806) 9.893 63.Valuation discount rate .548) 55.078) 57.914 13.3 Reconciliation of payable to defined benefit plan Present value of defined benefit obligations 36.078) (3.349 6.914 6.6 Reconciliation of present value of defined benefit obligation Opening balance Current service cost Interest cost Benefits paid 36. The actuarial valuation was carried out for the year ended December 31.5% Annual Report 2015 163 .718 60.5% Long term salary decreases by 0.818 (10.5% Long term salary increases by 0.548) (5.718 6.178 (4.Withdrawal rate Moderate Age .5 Movement in balance payable Opening balance Expense recognized Benefits paid to outgoing members Actuarial gain recognized on remeasurement of obligation Closing balance 36.Wise withdrawal rates Moderate Age .517 36.25% 8. 2015 36.043 59.205 (5.

845 4.718 2015 2014 2013 2012 2011 (Rupees in ‘000) 36. Badar Kazmi left on January 6. 2015 2014 2015 (Rupees in ‘000) 36. COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Executive 2015 2014 Directors 2015 Executives 2014 2015 2014 (Rupees in ‘000) Fees Managerial remuneration Charge for defined benefit plan Contribution to defined contribution plan Rent and house maintenance Utilities Others Number of persons – 50. 2015 and Mr. Based on actuarial advice.889.645.718 – 55.409 71.9 Summary of valuation results for the current and previous periods Present value of defined benefit obligation Fair value of plan assets 57.806 84.098 – Deficit 57.910 – 60. DEFINED CONTRIBUTION PLAN The Group has established a provident fund scheme administered by the Board of Trustees for all permanent employees.406 1.206 759 The President / Chief Executive is provided with Bank maintained cars.078) (3.718 – 60. as per terms of the employment.114 57. 38.873 77.806) (3.341 *3 3.812 – – 14. Atif R.092 3.573 7 63. 37.554 15. medical insurance and security arrangements.908 3.388 251.910 60. 164 Annual Report 2015 .914 63.796 23.209 1.163 2.139) 36.525 269.755 3.058 – – 46.065 million. 2015.718 – Type of benefits earned to date Accumulated benefit obligation Amounts attributed to future salary increases Total 34. 10.874 10.588 – 71.894 483.910 60.628 71. 2016 would be Rs.8 Analysis of present value of defined benefit obligation – Vested / Non-vested Vested benefits Non-vested benefits Total 57.464 2 – – – – 15. * Mr.647) (8.910 33.098 Experience gain on obligation (5.153) (8. management estimates that the charge in respect of the defined benefit plan for the year ending December 31. Bokhari joined with effect from January 7.914 – 63.645 152. Equal monthly contributions are made to the fund by both the Group and the employees at the rate of 10% of basic salary.315 60.718 55.107 639.573 – – – 770. Directors fees represents fees paid to certain non-executive directors of the Group and no further benefits are paid to non-executive directors.296 – 15.813 780 68.910 – 57.737 5.812 8 – – – – 14.588 71.Notes to the Consolidated Financial Statements For the year ended December 31.10 Expected contribution for the next one year The Group provides for gratuity as per the actuary's expected charge for the next one year.403 27.652 – 828.

951.599.943.576.Notes to the Consolidated Financial Statements For the year ended December 31.916.399.668 21.870 3.675 8.643 130.034 1.195.249.086 1.386 Investments Advances Other assets *Assets held for sale (net of liabilities) 93.071.851.052.898.494 59. Fair values of quoted held-to-maturity securities and sub-ordinated loans are stated at market values.809.814 110.044. *This includes assets held for sale net off liabilities.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange 8.741 85. fixed term advances of over one year.880 11. FAIR VALUE OF FINANCIAL INSTRUMENTS 39.216 2.914 million and liabilities held for sale amounts to Rs.543 10.836. staff loans and fixed term deposits of over one year.043.906 176.399.494 2.668.204 21. The fair values of investment in unquoted debt securities of which fair values are not available. staff loans.696.622.153.792 130.774.668.528 2.528 11.494 93.691 59.643 105.740.249.441 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.730 Other liabilities 1.894 62.844 22. Except for the above investment in unquoted equity securities and debt securities of which fair values are not available.750.725 62.675 Balances with other banks 1.543 8.638.528 85.561 4.994 93.733 7.165 5. other assets and other liabilities cannot be calculated with sufficient reliability due to non-availability of relevant active markets for similar assets and liabilities.646 7.034 1.576.924.102.617. the fair values of other on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short term in nature or are frequently re-priced.800 105.102. Fair value of unquoted equity securities have been stated at the lower of cost and net assets value as per the latest available audited financial statements.870 2.105.489 224.512 Liabilities Bills payable Borrowings Deposits and other accounts 2. As such the assets held for sale amounts to Rs.415 million.898.489 1.044 1.418 Lendings to financial institutions 1.725 5.699.231 94.197. 642.516 4.216 2.649 175.267 226.874.665.052.994 110. fixed term deposits.766.339 39.951.885 174.499 5.063.150 224.086 586.943 8.725 – – 223.558.673.418 586.673. 4.195 4.686.137.731.801. 2015 39.123.676.645. Annual Report 2015 165 . fixed term advances.1 On-balance sheet financial instruments 2015 Book value Fair value (Rupees in ‘000) Assets Cash and balances with treasury banks 2014 Book value Fair value 10.063.731.800 Sub-ordinated loans 4.746.703.670.740.645.179 176.924.029 22.874.

078.668.959 1.233.863 3.645.735.543 1.451 - 86.086 1.109 6.558.net 74.426.959 10.676.359.178 24.797 731.564.914 74.044 110.127.643 4.979 - - - - - - - (Rupees in ‘000) Non-financial Non-financial assets liabilities 131.Sub-ordinated loans .491 9.921 2.446 890.558.741 130.375.Assets held for sale Non-financial assets not measured at fair value .086 1.576.979 2.034 - - - 7.668.Borrowings .178 24.431.449.388.658 300.898.501.399.914 - Held to maturity - 1.481 Level 2 - - - - - - - - - - Level 3 Fair value 92.Lendings to financial institutions .078.Other assets .294 - Financial assets not measured at fair value .3 FAIR VALUE MEASUREMENT Notes to the Consolidated Financial Statements For the year ended December 31.233.216 85.979 226.668.564.643 4.544.729 4.985 10.Associates Closed end mutual funds Open end mutual funds .668.044 .658 - - - 5.086.994 2.564.564.985 10.052.359.237 235.228.Other liabilities - - Financial liabilities not measured at fair value .924.216 85.078.788 5.516 1.544.127. 2015 .237 235.959 131.Balances with other banks .195.543 1.481 Financial assets measured at fair value .110.658 300.959 - - Non-financial liabilities not measured at fair value .272 - Loans and receivables 6.319 1.565 - 2.544.052.788 300.780 - 74.729 4.609 2.272 - - - 225.426.034 642.741 130.446 890.181 3.576.433.788 5.Cash and balances with treasury banks .544.415 245.797 731.078.449.388.034 - - - 92.544 1.491 9.730 55.481 Total The table below analyses financial and non financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorized: 39.Subsidiaries Unlisted shares -Operating fixed assets -Intangible assets -Deferred tax assets .870 4.985 10.565) 20.294 10.501.658 - - - - 5.994 2.921 2.Other liabilities Liabilities held for sale 86.898.658 300.599.730 55.375.Bills payable .924.086.451 (225.788 5.Deposits and other accounts .481 Total (1.399.692 - - - 92.780 - 74.599.645.609 2.181 - - - 6.953.516 1.275.870 4.735.166 Annual Report 2015 - - 6.979) 18.985 10.433.Other assets .676.Advances .Investments Pakistan Investment Bonds Sukuk Bonds Defense Saving Certificates Cumulative Preference Shares Ordinary shares of unlisted companies Debt securities (listed TFCs) Debt securities (un-listed TFCs) .034 642.668.692 - - - 7.Investments Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Debt securities (listed TFCs) Available for sale On balance sheet financial instruments 5.415 - - - - - - Financial liabilities 2015 - - - 20.658 - Level 1 92.109 - - 1.195.668.431.

164 3.Balances with other banks .926.345 115.176 178.894 .528 .082 1.453 Held to maturity Financial liabilities not measured at fair value .301 - - - - - (Rupees in ‘000) Non-financial Non-financial assets liabilities 2014 Annual Report 2015 170.176 1.493.453 Total Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.093.489 .699.000.176) 16.577.105.195 1.Other liabilities - - 47.730 55.992.459.973 170.176.Advances .800 4.269 31.345 - - - 433.049 - - - 7.874. Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.195 1.725 14.973 170.750.725 - Loans and receivables 6.489 - - - - - - Financial liabilities - - - 25.345 115.528 .Deposits and other accounts .140 - - - - - - - - - - - Level 3 Fair value Level 2 14.176 2.569.100.646 93.569.675 586.459.397.894 .197.057 2.Investments Pakistan Investment Bonds Sukuk Bonds Defense Saving Certificates Cumulative Preference Shares Ordinary shares of unlisted companies Debt securities (listed TFCs) Debt securities (un-listed TFCs) .879 (1. 2015 167 .915.Cash and bank balances with treasury banks .219 - - Non-Financial liabilities not measured at fair value .- - .Assets held for sale .063.750.Investments Market Treasury Bills Pakistan Investment Bonds Ordinary shares of listed companies Debt securities (listed TFCs) Available for sale On balance sheet financial instruments Notes to the Consolidated Financial Statements For the year ended December 31. as prices) or indirectly (i.588 8.926.62.740.063.119 - 6.494 5.269 31.214 - - - - 53.906) 25.e.093.433 2.493.915. either directly (i.105.906 - 2.665.Sub-ordinated loans .214 554.397.111 1.033.116 4.102.758.418 7.033.102.214 554.057 2.164 3.e.758. The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: 6.494 5.249.673.178 30.093.Subsidiaries Unlisted shares .356 6.356 - - 3.406.093.Borrowings .958 (176.958 - - 47.665.269 31.Other assets Financial assets measured at fair value .Associates Closed end mutual funds Open end mutual funds .577.992.075 9.397.063.835 - - - 7.Other assets .345 433.588 - 14.140 - 14.Lendings to financial institutions .281 470.406.272.62.Operating fixed assets .Intangible assets .net Financial assets not measured at fair value .675 586.453 Level 1 53.214 554.973 170. Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability.214 554.Bills payable .116 4.049 - - - 53.Other liabilities Non-financial assets not measured at fair value .111 1.646 93. unobservable inputs).433 2.e.730 55.000.693.673.418 7.119 - - - 8.995.800 4.178 30.693.740.Deferred tax assets .835 - - - 53.758.758.197.879 3.699.269 31.194.100.453 Total 1.075 9.693.272.874.973 170.249.932.214 - - - 170.693. derived from prices).397.281 470.

251 222.131 2.231.202.336 million from PICIC AMC.021.569.618 – 79.810.050. Segment performance is reviewed on the basis of various factors including profit before taxation.315. 197.764 730.285.339.237 238.888.249 85.919.531 5.765 84.99% 10.021.356 0.1.164 229.895 197.355.008.558. PICIC Energy Fund and PICIC Investment Fund which have been classified under assets held for sale.315.089.69% (1.158.127.514 – (59.824 412.658.849 1. 168 Annual Report 2015 . Transactions between reportable segments are carried out on an arms length basis. *** Head Office / Other includes assets of Rs.803.169 (16.830 1.944 11.852.323 4.25% 8.646.583 32.190) 1.266) The respective segment assets and liabilities incorporate intersegment lending and borrowing.966 5.059 79.925 364.800 233.039 (2.315. These segments are managed by respective segment heads and the results of these segments are regularly reviewed by the Group's President / Chief Executive.621 – 231.105.14% 4.805 0.14% 1.Notes to the Consolidated Financial Statements For the year ended December 31.19. PICIC Asset Management Company and PICIC Energy Fund.686.490.390.128.339.621 237.138.122 11.380.841 79.266) – 12.756 – 4.454 884.730.035.038) 2.751.47% 289.781.817 – 50.183 618.904 1.580.127.162.860 82.136 – 742.011.230.75% (1.011.415 million related to PICIC AMC.059 – 11.170 14.678 2.266.742 4. 2015 40.201.524 – – – Segment net income / (loss) before tax ** Segment return on net assets (ROA) (%) Segment cost of funds (%) For the year ended December 31.122.72% (583.374.268 112.165 180. ** Head Office / Other includes profit from discontinued operations amounting to Rs.465 701.668 1.328. The segment analysis with respect to business activity is as follows: For the year ended December 31.211 1.237 – 234.472 2.178) (0.494) (59.347.103 9.858 231.4.64%) 2.389.660 – – Total expenses including provisions (excluding impairment) (Reversal) / impairment against investment 1.893 – – – N/A N/A Segment net income/ (loss) before tax Segment return on net assets (ROA) (%) Segment cost of funds (%) – As at December 31.953 11.005 22.573) (1.730 69.95%) 4.388 50.128.742 – 4.390.168 27.46% 6.332 313.797 772.889.973) (0.551 (59.233.245 1.819 100.65%) 4.011. 642.845 79.613 68.195 – 981.602 1.398 1.332 – – – Total expenses including provisions 1.889 4.280 82.107 9.801.936 422.213. which is classified under asset held for sale.806.494) – 13.273 37.497 202.443 3.623 – 1.089.355.386 2.713 475.69% (699.971 – – Total expenses including provisions 1. 2014 Net interest income Non markup income including share of income of associates Net interest and non mark–up income 474.625 2.266) (47.686 – (47.128.182 226.048.086 534.087.914 million and liabilities of Rs.631.756 4.200.592.474 0.700.888.968.264 477.812.971 1. 2015 Segment assets (gross) Segment non performing loans Segment provision against advances (including general provisions) Segment assets (net)*** Segment liabilities 118.477 233.326 53.323 407. 2015 Corporate & Investment Banking Commercial Retail Treasury Head Office / Other *Adjustments (Rupees in '000) Net interest income Non markup income including share of income of associates Net interest and non mark-up income 769.72%) 3.122 49.687.021.117 23.321 526.343 2. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Group comprises of Bank. with appropriate transfer pricing.91% 765. 2014 Segment assets (gross) Segment non performing loans Segment provision against advances (including general provisions) Segment assets (net) Segment liabilities * 95.733.00% 7.122 – 12. The Bank is organized into reportable segments as disclosed in note 6.225 – – Total expenses including provisions (excluding impairment) (Reversal) / impairment against investment 1.920.004. Executive Committee and the Board of Directors.978) (3.776 26.156 1.351 105.797 11.125 14.943 3.778 (47.494) As at December 31.931.745 71. The adjustments column eliminates intersegment lending and borrowing.518.413.

110 2014 Key management personnel Salaries and allowances of the key management personnel are in accordance with the terms of their employment.390) 23.622 31.292.301) (5.363) 1.780 – (12. associated undertakings (refer note 11.716 (1.1 Balances outstanding as at the year end 41.077) – 26.673) 9.794.905 (2.986) (4.656 – – Addition during the year Repaid during the year Deposits At the beginning of the year Transfer from subsidiary to associate Deposits during the year Exchange difference Withdrawal during the year At the end of the year – At the beginning of the year Advances – – 724 – – – 724 – – – – – – – – – – 2014 2015 2015 2014 Unconsolidated subsidiary Holding company The details of transactions with related parties is given below: – 36.707 – – – – – 42.878 5.408.880 – 270. 2015 169 .462 958.917 1.960) 19 563.696 2015 24.037 55.170 50.528.820) – – – – – 724 – – – 724 – – – – – – 19.842 (26.212 – 958.227 933.148) 168.033 77.827 – – – – 2014 (Rupees in ‘000) 2015 Associates – – – – – – – 38.681 – 33.094) (9.408.263.412 5.256 5.670.234.426 52.037 – 72.594) 52.346.971.996.11).876 2014 Other related parties 536 9.315.277 (11.656 14.897 – – – – – – At the end of the year – – – 16.888 39. unconsolidated subsidiary (refer note 11.622 2015 24.347) 1.780 240.981 55.387) (9. Contributions to defined contribution plan are made in accordance with the terms of the contribution plan. RELATED PARTY TRANSACTIONS 41.10).033 1.498 4.001 2. Transactions with related parties are executed on the same terms as those prevailing at the time for comparable transactions with unrelated parties except for staff loans which are on discounted rates as per industry practice.153 (210.178.030 61. The Group has related party transactions with its holding company (refer note 1).735) – 38.707 (37.450 4.305 36.254 (551.179.371 60.680) – 60.605) (2.972 – (251) (2.990) 136 (1.935. employee benefit plans (refer note 36) and its key management personnel.– At the end of the year Annual Report 2015 At the end of the year Payables – 171 – At the end of the year Receivables – – Investments sold / written off during the year Equity accounting method adjustments – Investments made during the year At the beginning of the year Investment in shares / mutual funds – 171 – – – – – 16.033 24.227 271.543.294.968 (146.100 – (5.000 270.813.267.888 (296.510 5.696 – – – – – – – 27.509) (980) 290.614 363.971. Notes to the Consolidated Financial Statements For the year ended December 31.162 – 27.

603 28. Capital Adequacy Ratio (CAR) has been calculated in accordance with the guidelines as stipulated by State Bank of Pakistan vide BPRD Circular No.940 _ 10.817 15.559 _ _ _ 3.391 2015 _ _ 109.247 _ _ _ _ 542. 42.444 _ 9.170 Annual Report 2015 _ _ _ _ _ _ _ Dividend income from shares / mutual funds Directors’ remuneration Directors’ travelling expense Remuneration to key management personnel Contribution to Provident Fund Management fee earned Commission income CAPITAL ASSESSMENT AND ADEQUACY _ Mark-up / return / interest expensed on deposits 2014 _ _ _ _ _ _ _ _ _ 2015 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 2014 Unconsolidated subsidiary 2014 1.200 73.2 Income / Expense for the year 2015 Holding company Notes to the Consolidated Financial Statements For the year ended December 31.812 105.059 64.261 _ _ _ _ 46. 06 of August 15. The said circular has revised the Basel II Framework with Basel III Capital reforms to further strengthen the capital related rules.869 _ (Rupees in ‘000) 2015 Associates _ _ _ 306.087 _ 3.654 15. 2013. 2015 .284 _ _ _ 842 3.889 2015 _ _ _ 423.544 2014 Key management personnel _ _ 113. 2019.1 Scope of Application 42 _ Mark-up / return / interest earned on advances 41.714 14. 2013 in a phased manner with full implementation intended by December 31.558 5.081 394. These instructions were effective from December 31.012 438.307 21.529 71.099 2014 Other related parties The Basel III Framework is applicable to the Bank on both at the consolidated level (comprising subsidiaries and associates) and also on a stand alone basis.110 12.

028. The Group manages its capital structure and makes adjustments to it in the light of changes in economic conditions. In order to maintain or adjust the capital structure. shareholders' returns and expectations.2 Capital Structure The Group's regulatory capital base comprise of: (a) Tier 1 capital which includes fully issued. The Group ensures adherence to SBP's requirements by monitoring its capital adequacy on a regular basis. Cash and near Cash collateral includes Government of Pakistan Securities. regulatory requirements and the risk profile of its activities. 2015 42. and Risk-Weighted Assets are determined according to SBP requirements that seek to reflect the varying levels of risk attached to Group's On and Off-balance sheet exposures. 10 each. Cash and Cash equivalents (deposits / margins.198. reserves and accumulated profits/ losses. Banking operations are categorized as either Trading book or Banking book. subscribed and paid up capital.164 shares of Rs. The issued. The said TFCs have been issued as per Basel-III guidelines. unsecured and eligible for Tier 2 Term Finance Certificates (TFCs) of Rs. The Group also closely monitors the capital adequacy requirements by applying stressed conditions.25% of Risk Weighted Asset). if any. lien on deposits). (b) Tier 2 capital consists of general provision for loan losses (subject to 1. Shares listed on the stock exchanges.1. Collateral. 42. comprising of 10. 4.851. Quoted. 2014 having the tenure of 8 years. Annual Report 2015 171 . 103.1 Capital Management The purpose of capital management at the Group is to ensure efficient utilization of capital in relation to business requirements. The Group has complied with all regulatory capital requirements as at the reporting date.1. sub-ordinated loans and surplus on revaluation of securities.035 thousands were issued on June 19. risk appetite. subscribed and paid up capital of the Group is Rs. the Group may issue capital / Tier 2 capital.Notes to the Consolidated Financial Statements For the year ended December 31. 2015. growth.512 thousands as at December 31.302. balance in share premium account. is used as an outflow adjustment and applicable risk weights are applied to Net Adjusted Exposure.

2) 19 Additional Tier 1 capital after regulatory adjustments 20 Additional Tier 1 capital recognized for capital adequacy 21 Tier 1 Capital (CET1 + admissible AT1) Tier 2 Capital 22 Qualifying Tier 2 capital instruments under Basel III plus any related share premium 23 Tier 2 capital instruments subject to phaseout arrangement issued under pre-Basel III rules 24 Tier 2 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group tier 2) 25 of which: instruments issued by subsidiaries subject to phase out 26 General provisions or general reserves for loan losses-up to maximum of 1.623) 474.909) 11 Common Equity Tier 1 11.197.700 – 166.512 – – (45.588 913.700 – – 4.769.928.028.432.195 – – – – – – 154.123 – (42.372 94.666 – – 5.763 4.Notes to the Consolidated Financial Statements For the year ended December 31.129. 2015 42.353 15.300.672 10 Total regulatory adjustments applied to CET1 (Note 42.2 Common Equity Tier 1 capital (CET1): Instruments and reserves 2015 2014 (Rupees in ‘000) 1 2 3 4 5 6 7 8 Fully Paid-up Capital / Capital deposited with SBP Balance in Share Premium Account Reserve for issue of Bonus Shares Discount on Issue of shares General / Statutory Reserves Gain / (Losses) on derivatives held as Cash Flow Hedge Unappropriated / unremitted profits / (losses) Minority Interests arising from CET1 capital instruments issued to third parties by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) 9 CET 1 before Regulatory Adjustments 103.405) – – 11.512 – – (45.769.168 – – – (72.582 – (40.416.195.666 – 913.763 Additional Tier 1 (AT 1) Capital 12 Qualifying Additional Tier 1 capital instruments plus any related share premium 13 of which: Classified as equity 14 of which: Classified as liabilities 15 Additional Tier 1 capital instruments issued to third parties by consolidated subsidiaries (amount allowed in group AT1 ) 16 of which: instrument issued by subsidiaries subject to phase out 17 AT1 before regulatory adjustments 18 Total regulatory adjustment applied to AT1 capital (Note 42.118) – 103.205.179 .711.318 166.028.1) (6.2.2.185) (4.168 10.371.371.623) 997.340) – 17.711.516.516 4.25% of Credit Risk Weighted Assets 27 28 29 30 31 32 Revaluation Reserves (net of taxes) of which: Revaluation reserves on fixed assets of which: Unrealized gains / losses on AFS Foreign Exchange Translation Reserves Undisclosed/Other Reserves (if any) T2 before regulatory adjustments 172 Annual Report 2015 – – – – – – – – – (191.840.974) – – 10.

015 – 4.47% 11.183 (903.52% 8.025.25% 0.00% Annual Report 2015 173 .301.321 14.47% 8.50% 0.50% 7.15% 12.3) Tier 2 capital (T2) after regulatory adjustments Tier 2 capital recognized for capital adequacy Portion of Additional Tier 1 capital recognized in Tier 2 capital Total Tier 2 capital admissible for capital adequacy TOTAL CAPITAL (T1 + admissible T2) 39 Total Risk Weighted Assets (RWA) {for details refer Note 42.Notes to the Consolidated Financial Statements For the year ended December 31.00% 10.673.015 16.858) 4.00% – – 2. 2015 2015 2014 (Rupees in ‘000) 33 34 35 36 37 38 Total regulatory adjustment applied to T2 capital (Note 42.25% – – 2.321 – 4.321 4.50% 10.97% 6.314.15% 9.00% 7.314.536 9.98% 6.015 4.00% 5.90% 5.087 122.981.2.084 127.301.5} 40 41 42 43 44 45 46 47 Capital Ratios and buffers (in percentage of risk weighted assets) CET1 to total RWA Tier 1 capital to total RWA Total capital to total RWA Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus any other buffer requirement) of which: capital conservation buffer requirement of which: countercyclical buffer requirement of which: D-SIB or G-SIB buffer requirement CET1 available to meet buffers (as a percentage of risk weighted assets) National minimum capital requirements prescribed by SBP 48 CET1 minimum ratio 49 Tier 1 minimum ratio 50 Total capital minimum ratio (202.301.473.573) 4.314.

financial and insurance entities that are outside the scope of regulatory consolidation.119) – (31.527) – – – – – – (775.928.2.084. net of related tax liability) (1.964.816) – – – – – – – – – – – – – – – – – (2.508.623) – (2.119) – – – (72.666.865) – (1.405) 22 Total regulatory adjustments applied to CET1 174 Annual Report 2015 (6.644.185) – (2.763. 2015 2015 2014 Amounts subject to Pre-Basel III treatment (Rupees in ‘000) Regulatory Adjustments and Additional Information 42. financial and insurance entities – Cash flow hedge reserve – Investment in own shares/ CET1 instruments – Securitization gain on sale – Capital shortfall of regulated subsidiaries – Deficit on account of revaluation from bank's holdings of fixed assets/ AFS – Investments in the capital instruments of banking.018) Amount exceeding 15% threshold – of which: significant investments in the common stocks of financial entities – of which: deferred tax assets arising from temporary differences – National specific regulatory adjustments applied to CET1 capital – Investments in TFCs of other banks exceeding the prescribed limit – Any other deduction specified by SBP (mention details) – Adjustment to CET1 due to insufficient AT1 and Tier 2 to cover deductions (191.974) (4.909) .Notes to the Consolidated Financial Statements For the year ended December 31.185) Shortfall in provisions against classified assets – Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) (1. financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) – Deferred Tax Assets arising from temporary differences (amount above 10% threshold.577) Defined–benefit pension fund net assets – Reciprocal cross holdings in CET1 capital instruments of banking.377) (31.129.1Common Equity Tier 1 capital: Regulatory adjustments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Goodwill (net of related deferred tax liability) – All other intangibles (net of any associated deferred tax liability) (2.262. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) – Significant investments in the common stocks of banking.

remain subject to deduction from additional Tier 1 capital 29 Adjustments to Additional Tier 1 due to insufficient Tier 2 to cover deductions 30 Total regulatory adjustment applied to AT1 capital (191. financial and insurance entities that are outside the scope of regulatory consolidation.2.405) – (72.2.858) Annual Report 2015 175 . financial and insurance entities that are outside the scope of regulatory consolidation.Notes to the Consolidated Financial Statements For the year ended December 31. financial and insurance entities 33 Investment in own Tier 2 capital instrument 34 Investments in the capital instruments of banking.3 Tier 2 Capital: regulatory adjustments 31 Portion of deduction applied 50:50 to Tier 1 and Tier 2 capital based on pre–Basel III treatment which. 28 Portion of deduction applied 50:50 to Tier 1 and Tier 2 capital based on pre–Basel III treatment which.405) – (72. financial and insurance entities that are outside the scope of regulatory consolidation. 2015 2015 2014 Amounts subject to Pre-Basel III treatment (Rupees in ‘000) Regulatory Adjustments and Additional Information 42. during transitional period. financial and insurance entities 26 Investments in the capital instruments of banking.974) – – – – – – – – – – – – – – – – – – (191.573) – – – – – (903. during transitional period. remain subject to deduction from Tier 2 capital 32 Reciprocal cross holdings in Tier 2 instruments of banking.974) 42. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 27 Significant investments in the capital instruments of banking. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) 35 Significant investments in the capital instruments issued by banking. financial and insurance entities that are outside the scope of regulatory consolidation 36 Total regulatory adjustment applied to T2 capital – (202.858) – – – – – – – (202.2 Additional Tier 1 & Tier 1 Capital: regulatory adjustments 23 Investment in mutual funds exceeding the prescribed limit [SBP specific adjustment] 24 Investment in own AT1 capital instruments 25 Reciprocal cross holdings in Additional Tier 1 capital instruments of banking.573) – (903.

440.273 691.2. financial and insurance entities where holding is less than 10% of the issued common share capital of the entity (iv) of which: Recognized portion of investment in capital of banking.774 – – – – – – – – – 1.392 4. 2015 2015 2014 (Rupees in ‘000) 42.140.4Additional Information Risk Weighted Assets subject to pre–Basel III treatment 37 Risk weighted assets in respect of deduction items (which during the transitional period will be risk weighted subject to Pre–Basel III Treatment) (i) of which: deferred tax assets (ii) of which: Defined–benefit pension fund net assets (iii) of which: Recognized portion of investment in capital of banking.372 154.Notes to the Consolidated Financial Statements For the year ended December 31.197 154.907.774 7.440.318 – – – – . financial and insurance entities where holding is more than 10% of the issued common share capital of the entity Amounts below the thresholds for deduction (before risk weighting) 38 Non–significant investments in the capital of other financial entities 39 Significant investments in the common stock of financial entities 40 Deferred tax assets arising from temporary differences (net of related tax liability) Applicable caps on the inclusion of provisions in Tier 2 41 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap) 42 Cap on inclusion of provisions in Tier 2 under standardized approach 43 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings–based approach (prior to application of cap) 44 Cap for inclusion of provisions in Tier 2 under internal ratings–based approach 176 Annual Report 2015 4.907.318 94.372 94.392 – 7.

645.044 98.754.576.516 – – 4.061 9.416.042.042.258.159 245.544 2.3 Capital Structure Reconciliation 42.754.645.676.543 1.673.259 7.618.319.044 98.1 As per published Under regulatory financial statements scope of consolidation 2015 2015 (Rupees in ‘000) Assets Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments (including assets held for sale) Advances (including assets held for sale) Operating fixed assets (including assets held for sale) Intangible assets (including assets held for sale) Deferred tax assets (including assets held for sale) Other assets (including assets held for sale) Total assets 10.319.582 (40.889 997.953.816 2.089.089.676.428 226.118) – 248.118) – 248.543 1.599.703 57.582 (40.816 2.416.265.042.258.265.399.460 245.052.216 85.889 997.393 3.086 1.703 Annual Report 2015 177 .105.460 245.643 4.041 110.159 245.216 85.042.195.618.544 Share capital / Head office capital account Reserves Unappropriated / Unremitted profit / (losses) Minority Interest Surplus on revaluation of assets Total equity Total liabilities & equity 57.953.052.599.086 1.259 7.741 130.3.516 – – 4.115.Notes to the Consolidated Financial Statements For the year ended December 31.806 18.806 18.576. 2015 42.399.703 Liabilities & Equity Bills payable Borrowings Deposits and other accounts (including liabilities held for sale) Sub–ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities (including liabilities held for sale) Total liabilities 2.643 4.673.195.393 3.061 9.428 226.041 110.703 10.105.115.741 130.

052.044 98.319.Notes to the Consolidated Financial Statements For the year ended December 31.771.816 48.673.618.618.259 – 154.599.816 48.817 7. financial and insurance entities exceeding 10% threshold of which: significant capital investments in the capital instruments issued by banking.460 – – – 245.372 3.041 – 10.460 – – – 245.543 1.573 – 110.052. AT1.115.754.265.599.703 i k k j k l .3.393 202.618.645.061 9.124 2.547.703 5.042.543 1.259 f g 3.754.124 2.573 – 110.645.061 2.044 98. financial and insurance entities exceeding regulatory threshold of which: Mutual Funds exceeding regulatory threshold of which: reciprocal crossholding of capital instrument (separate for CET1.442 3.061 2.042.2 As per published financial statements 2015 Assets Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments of which: Non–significant capital investments in the capital instruments of banking. T2) of which: others (mention details) Advances shortfall in provisions/ excess of total EL amount over eligible provisions under IRB general provisions reflected in Tier 2 capital Fixed Assets of which: Intangibles Intangible assets of which: Intangibles Deferred Tax Assets of which: DTAs that rely on future profitability excluding those arising from temporary differences of which: DTAs arising from temporary differences exceeding regulatory threshold Other assets of which: Goodwill of which: Intangibles of which: Defined–benefit pension fund net assets Total assets 178 Annual Report 2015 Under regulatory scope of consolidation 2015 (Rupees in ‘000) 10.405 b c 202.817 7.442 h 5.405 – 191. 2015 42.393 d e – 154.618.115.319.086 1.086 1.547.673.372 3.771.265.061 9.041 – a – 191.

105.399.953.399.806 – 166.576.118) – – – – 248.576.042.Notes to the Consolidated Financial Statements For the year ended December 31.889 – 997.953.216 85.258.428 226.889 of which: amount eligible for CET1 57.582 – (40.195.700 57.643 4.741 130.544 2.416.416.258.676.889 of which: amount eligible for AT1 – Reserves 997.582 of which: portion eligible for inclusion in CET1(provide breakup) 997.042.216 85.258.195.741 130.516 – – – – – – 4.516 – – – – – – 4.428 226.195. 2015 As per published Under regulatory financial scope of statements consolidation 2015 2015 (Rupees in ‘000) Liabilities & Equity Bills payable Borrowings Deposits and other accounts Sub–ordinated loans of which: eligible for inclusion in AT1 of which: eligible for inclusion in Tier 2 Liabilities against assets subject to finance lease Deferred tax liabilities of which: DTLs related to goodwill of which: DTLs related to intangible assets of which: DTLs related to defined pension fund net assets of which: other deferred tax liabilities Other liabilities Total liabilities 2.516 – 4.582 997.806 of which: Revaluation reserves on Property – of which: Unrealized Gains/Losses on AFS 166.889 57.544 Share capital 57.516 – 4.643 4.105.195.676.703 – m n o p q r s t u v w x y z aa ab 245.582 of which: portion eligible for inclusion in Tier 2 – Unappropriated profit/ (losses) (40.258.703 Annual Report 2015 179 .700 In case of Deficit on revaluation (deduction from CET1) Total liabilities & Equity – 245.118) Minority Interest – of which: portion eligible for inclusion in CET1 – of which: portion eligible for inclusion in AT1 – of which: portion eligible for inclusion in Tier 2 – Surplus on revaluation of assets 248.

net of related tax liability) (1.666. financial and insurance entities that are outside the scope of regulatory consolidation.512 Balance in Share Premium Account (45.118) Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group) – CET 1 before Regulatory Adjustments 17.Notes to the Consolidated Financial Statements For the year ended December 31.353 Common Equity Tier 1 capital: Regulatory adjustments Goodwill (net of related deferred tax liability) – All other intangibles (net of any associated deferred tax liability) (2.129.623) Reserve for issue of Bonus Shares – General/ Statutory Reserves 997. 2015 Component of regulatory capital reported by bank Source based on reference number from step 2 (Rupees in ‘000) 1 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 30 180 Common Equity Tier 1 capital (CET1): Instruments and reserves Fully Paid–up Capital/ Capital deposited with SBP 103.577) Defined–benefit pension fund net assets – Reciprocal cross holdings in CET1 capital instruments – Cash flow hedge reserve – Investment in own shares/ CET1 instruments – Securitization gain on sale – Capital shortfall of regulated subsidiaries – Deficit on account of revaluation from bank's holdings of fixed assets/AFS – Investments in the capital instruments of banking.185) Shortfall of provisions against classified assets – Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability) (1. financial and insurance entities that are outside the scope of regulatory consolidation (amount above 10% threshold) – Deferred Tax Assets arising from temporary differences (amount above 10% threshold.508.769.416.168 Annual Report 2015 (s) (u) (w) (x) (j) – (o) (k) – (p) (f) {(h) – (r)} * x% {(l) – (q)} * x% (d) (ab) (a) – (ac) – (ae) (b) – (ad) – (af) (i) .405) Total regulatory adjustments applied to CET1 (6.028.711.185) Common Equity Tier 1 11. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) – Significant investments in the capital instruments issued by banking.018) Amount exceeding 15% threshold – of which: significant investments in the common stocks of financial entities – of which: deferred tax assets arising from temporary differences – National specific regulatory adjustments applied to CET1 capital – of which: Investment in TFCs of other banks exceeding the prescribed limit – of which: Any other deduction specified by SBP (mention details) – Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions (191.840.763.582 Gain/(Losses) on derivatives held as Cash Flow Hedge – Unappropriated/unremitted profits/ (losses) (40.

700 – 166. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the capital instruments issued by banking. financial and insurance entities that are outside the scope of regulatory consolidation.195.25% of Credit Risk Weighted Assets Revaluation Reserves of which: Revaluation reserves on Property of which: Unrealized Gains / Losses on AFS Foreign Exchange Translation Reserves Undisclosed / Other Reserves (if any) 57 T2 before regulatory adjustments 47 48 49 50 51 (191.516.405) – – – (ac) – (ad) – – (191.711. financial and insurance entities that are outside the scope of regulatory consolidation Portion of deduction applied 50:50 to core capital and supplementary capital based on pre–Basel III treatment which.372 166.Notes to the Consolidated Financial Statements For the year ended December 31. remain subject to deduction from Tier 1 capital Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions Total of Regulatory Adjustment applied to AT1 capital Additional Tier 1 capital Additional Tier 1 capital recognized for capital adequacy Tier 1 Capital (CET1 + admissible AT1) 52 53 54 55 56 Tier 2 Capital Qualifying Tier 2 capital instruments under Basel III plus any related share premium Capital instruments subject to phase out arrangement from Tier 2 (Pre–Basel III instruments) Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group Tier 2) of which: instruments issued by subsidiaries subject to phase out General Provisions or general reserves for loan losses–up to maximum of 1. during transitional period.588 Annual Report 2015 181 .405) – – 11.168 4. 2015 Component of regulatory capital reported by bank Source based on reference number from step 2 (Rupees in ‘000) 31 32 33 34 35 36 Additional Tier 1 (AT 1) Capital Qualifying Additional Tier 1 instruments plus any related share premium of which: Classified as equity of which: Classified as liabilities Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties (amount allowed in group AT 1) of which: instrument issued by subsidiaries subject to phase out AT1 before regulatory adjustments – – – – – – (t) (m) (y) Additional Tier 1 Capital: regulatory adjustments 37 38 39 40 41 42 43 44 45 46 Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment) Investment in own AT1 capital instruments Reciprocal cross holdings in Additional Tier 1 capital instruments Investments in the capital instruments of banking.700 – – (z) portion of (aa) (v) 4.516 (n) – – – 154.

015 – 4.573) 4.512 PKR 10 Shareholder equity 2003 Perpetual Not applicable No PKR 4.Subordinated Loans 19-June-2014 Dated 19-June-2022 Yes (SBP's) Not applicable Not applicable Not applicable Not applicable .573) – – – (202.000 Liability .183 42.028. financial and insurance entities that are outside the scope of regulatory consolidation.314. financial and insurance entities that are outside the scope of regulatory consolidation Amount of Regulatory Adjustment applied to T2 capital Tier 2 capital (T2) Tier 2 capital recognized for capital adequacy Excess Additional Tier 1 capital recognized in Tier 2 capital Total Tier 2 capital admissible for capital adequacy TOTAL CAPITAL (T1 + admissible T2) – (202. remain subject to deduction from Tier 2 capital Reciprocal cross holdings in Tier 2 instruments Investment in own Tier 2 capital instrument Investments in the capital instruments of banking. where the bank does not own more than 10% of the issued share capital (amount above 10% threshold) Significant investments in the capital instruments issued by banking.195.025. during transitional period. if applicable Annual Report 2015 Common Shares NIB Bank Limted NIB Capital Market Laws Instrument .314. 2015 Component of regulatory capital reported by bank Source based on reference number from step 2 (Rupees in ‘000) Tier 2 Capital: regulatory adjustments 58 59 60 61 62 63 64 65 66 67 Portion of deduction applied 50:50 to core capital and supplementary capital based on pre–Basel III treatment which.2 NIB Bank Limted NIBTFC2 Capital Market Laws Common equity Tier 1 Common equity Tier 1 Group & standalone Ordinary Shares Tier 2 Tier 2 Group & standalone Subordinated Debt PKR 103.916 PKR 5.Notes to the Consolidated Financial Statements For the year ended December 31.015 4. No.015 (ae) (af) 16.4 Main Features Template of Regulatory Capital Instruments Sr.314. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 182 Main Features Issuer Unique identifier (KSE Symbol) Governing law(s) of the instrument Regulatory treatment Transitional Basel III rules Post-transitional Basel III rules Eligible at solo/ group/ group & solo Instrument type Amount recognized in regulatory capital (Currency in PKR thousands) Par value of instrument Accounting classification Original date of issuance Perpetual or dated Original maturity date Issuer call subject to prior supervisory approval Optional call date. contingent call dates and redemption amount Subsequent call dates.

2 Not applicable Not applicable Not applicable Floating Six months KIBOR (Ask side) +1. partially discretionary or mandatory Existence of step up or other incentive to redeem Non cumulative or cumulative Convertible or non-convertible If convertible. conversion rate Not applicable Not applicable 27 28 29 If convertible. Main Features 17 18 19 20 Coupons / dividends Fixed or floating dividend/ coupon Coupon rate and any related index/benchmark Common Shares Instrument . 2. write-down trigger(s) If write-down. No. 2015 Sr. full or partial If write-down. mandatory or optional conversion If convertible.Notes to the Consolidated Financial Statements For the year ended December 31. fully and permanently convert the TFCs into common shares of the Bank and / or have them immediately written off (either partially or in full) As the case may be At a minimum conversion rate of Rs. Mandatory Shares Not applicable NIB Bank Limited Not applicable Not applicable Not applicable Explained at 24 above Not applicable Not applicable Not applicable Not applicable Not applicable No Not applicable Not applicable No Not applicable 21 30 31 32 33 34 35 36 37 Annual Report 2015 183 . specify instrument type convertible into If convertible. permanent or temporary If temporary write-down. SBP may at its option. fully or partially If convertible.15 Not applicable Fully discretionary Mandatory 22 23 24 Existence of a dividend stopper Fully discretionary. specify non-compliant features Not applicable Not applicable Upon the occurrence of a Point of Non-Viability PONV event as defined below.36 per share. conversion trigger (s) Not applicable Not applicable Not applicable Non cumulative Not applicable 25 26 If convertible. specify issuer of instrument it converts into Write-down feature If write-down. description of write-up mechanism Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) Non-compliant transitioned features If yes.

261 4.731 488.502.475 38.161 61.994.610 614.399.965 91.346.018 2.898 .574 599.096.958 209.496 9.846.003 10.204.100 4.177.956 95.816 2.755 462. 2010.868.466. – to maintain a strong capital base so as to maintain investor.635 10. depositor and market confidence and to sustain future development of the business.210 48. – to safeguard the Group's ability to continue as a going concern so that it can continue to provide adequate return to shareholders.523 687. and – to protect the Group against unexpected events.423 663.814 12.635.159 25. 103 billion and 12.829 77.752 380.623 128.088.700 416.5 Capital Adequacy Objectives of Managing Capital Capital Management aims to ensure that there is sufficient capital to meet the capital requirements of the Group as determined by the underlying business strategy and the minimum regulatory requirements of the SBP.740 5.999.035 91.486.881 334.092.366 306.693 10.384 33. 2015 42.020.189 61. SBP through its BSD Circular No.226 420.659 2.178 23.473 8.875. The Group has complied with all externally imposed capital requirements as at year end.509 11.384.991 106.578 2.101 102.511 18. 07 of 2009 dated April 15.352. SBP vide BSD Circular No.819 81. Group's capital management seeks: – to comply with the capital requirements set by the regulators.588 2.067. 2015.652 55.652 68.928. 10 billion free of losses by the end of financial year 2013.593 24.459 299.354 617. Externally Imposed Capital Requirements In order to strengthen the solvency of Banks. The capital requirements for the banking group as per the major risk categories should be indicated in the manner given below: Capital Requirements 2015 Credit Risk Portfolios subject to Simple Approach On-Balance Sheet Corporate Sovereign Retail Banks Public Sector Entities Past Due Loans Claims against Residential Mortgage Invetsments in premises.621 2. 2009 has asked Banks to achieve the minimum Capital Adequacy Ratio (CAR) of 10% on standalone as well as on consolidated basis latest by December 31.741 5.718 492. – availability of adequate capital at a reasonable cost so as to enable the Bank to expand.530.Notes to the Consolidated Financial Statements For the year ended December 31.206 23.769 1.936.054.505.349 911.442 66.174 553.771.921.659 3.177 4.52% respectively of its risk weighted exposure as at December 31.451 1. The paid up capital and CAR of the Group stands at Rs. 09 dated April 15. plant and equipment and all other fixed assets Other assets Off-Balance Sheet Market related Non-market related Equity Exposure Risk in the Banking Book Listed Unlisted 184 Annual Report 2015 2014 Risk Weighted Assets 2015 2014 (Rupees in ‘000) 5.183 7.162 41.150 80.793.639 186.239.880.176 46.754.097 9.815 8. 2009 has asked the Banks to raise their minimum paid up capital to Rs.995 48.

115.939. For domestic claims.953 844. 2013 to December 31.0% ).00% 10.52% 5. 2015 the Group’s Leverage ratio stood at 3. Total Market Risk Operational Risk Capital Requirement for operational risks 116.50% 7. and Moody`s are used.167.6 Credit Risk: subject to Standardized Approach The Group has adopted Standardized approach for calculation of capital charge against credit risk in line with SBP's requirements.988 40. 2015 are as follows: PACRA JCR-VIS Other (S&P / Moody's / Fitch) Corporate ✓ ✓ – Banks ✓ ✓ ✓ Sovereigns – – ✓ Public Sector Enterprises ✓ ✓ – Exposures 42.536 2014 Actual 2015 Required 9.404 1.241 1. 2015.087 122.356 1.123 12.641.355 127.875 405. with a view to set the leverage ratio as a separate capital standard on December 31. The Basel III leverage ratio is defined as the capital measure (the numerator) divided by the exposure measure (the denominator). namely Pakistan Credit Rating Agency Limited (PACRA) and JCR-VIS Credit Rating Company Limited (JCR-VIS) are used.432.513.798. Types of exposure for which each agency is used in the year ended December 31.98% 42.981.00% 2014 Actual 8.211. Foreign exchange risk etc.234 12.Notes to the Consolidated Financial Statements For the year ended December 31. 2018. 2017. ratings assigned by Fitch.436 10.7 The State Bank of Pakistan (SBP) through its BPRD Circular No. will be completed.15% 9.00% 95.During this period the final calibration.110 2015 Required Capital Adequacy Ratio CET1 to total RWA Tier 1 capital to total RWA Total capital to total RWA 6.80% (minimum requirement of 3.516 27.15% 12.064. 06 of 2013 has issued instructions regarding implementation of parallel run of leverage ratio reporting and its components from December 31.550 959.473. Annual Report 2015 185 . Banks are required to disclose the leverage ratio from December 31.788 793.580 951.50% 10.00% 7. For claims on foreign entities. and any further adjustments to the definition. External Credit Assessment Institutions (ECAIs) recommended by the SBP. 2015 Capital Requirements 2015 Risk Weighted Assets 2014 2015 2014 (Rupees in ‘000) Market Risk Capital Requirement for portfolios subject to Standardized Approach Interest rate risk Equity position risk etc.354 9.552 2.534 8.247.736 943.445.544 12.875 7. Standard and Poor`s.47% 11.800 9.47% 8. with this ratio expressed as a percentage: Leverage Ratio = Tier 1 capital (after related deductions) Total Exposure As at December 31.

319.599.393 3.599 34.543. Guarantees) Trade–related Contingent Liabilities (i.276 – – – – – – 335.462.892 3.033.786.995.302.816 9.646 59.245 8.272 17.032 – – – – 153.673.525 3.001 – – – – Total Derivatives (A.Notes to the Consolidated Financial Statements For the year ended December 31.519.670. Acceptances.703 194.255 2.499 64.041 110.164 335.Off Balance Sheet Items (Derivatives having negative fair value are also included) Interest Rate Equity Foreign Exchange & gold Precious Metals (except gold) Commodities Credit Derivatives (protection sold and bought) Other derivatives Total Derivatives (C) Tier 1 Capital Total Exposures (sum of A. 2015 2015 2014 (Rupees in ‘000) On-Balance Sheet Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments (including assets held for sale) Advances (including assets held for sale) Operating fixed assets (including assets held for sale) Deferred tax assets (including assets held for sale) Financial Derivatives (A.019.301 Interest Rate Equity Foreign Exchange & gold Precious Metals (except gold) Commodities Credit Derivatives (protection brought & sold) Any other derivatives – – 135. Letter of Credits) Lending of securities or posting of securities as collaterals Undrawn committed facilities (which are not cancellable) Unconditionally cancellable commitments Commitments in respect of operating leases Commitments for the acquisition of operating fixed assets Other commitments 6.839 – – – – 189.941 23.370 10.673.323 – – – – – – 328.1) 135.086 1.001 11.418 7.80% 328.052. general guarantees for indebtness etc.754.276 9.618.206 2.699.494 3.259 135.643 Total Off–Balance Sheet Items excluding Derivatives (B) 63.) Performance–related Contingent Liabilities (i.543.287.691 93.752 – – 189.301.045 4.e.763 259.057 9.645.675 586.042.839 10.303.115.861 22.155 Total Assets (A) 245.168 308.001 Off–Balance Sheet Items excluding derivatives Direct Credit Substitutes (i.160.044 98.498 – 15.e.276 335.99% Derivatives (On-Balance Sheet) Commitments in respect of Derivatives .371.711.543 1.229.941.1) Other assets (including assets held for sale) 10.992.e.748.529 – 4.559.B and C) Leverage Ratio 186 Annual Report 2015 .063.323 11.

Terms and references of BRMC are documented and duly approved by the BOD and broadly includes oversight responsibility at the highest level under the Risk Management Governance Framework. Credit Risk Committee (“CRC”) In our normal business activities there is a need to manage effectively potential credit risk. the Credit Risk Committee (“CRC”) and the Operational Risk Committee (“ORC”). To ensure that all activities are in compliance with the Prudential Regulations and also with the policies and controls established by the relevant units of the Bank through periodic review of business issues highlighted in internal / external audit reports and SBP Inspection Report. to identify. variance analysis of actual with plan and forecasts portfolio exceptions To advise business where activities are not aligned with control requirements or risk appetite and to recommend Risk Policies. The Bank’s risk management policies are established to identify and analyze the risks faced by the Bank.Notes to the Consolidated Financial Statements For the year ended December 31. which meets six times a calender year. The main objective of the ORC is to ensure effective and proactive management of Operational Risk throughout the Bank in accordance with the Risk Management Framework and related Risk Policies and Procedures. Asset Liability Committee (“ALCO”) The ALCO functions as the top operational unit for managing the statement of financial position within the performance/risk parameters laid down by the BOD. Findings of the BRMC are escalated to the BOD. Terms and references of the ORC. manage and monitor risks. To address this risk. which is an oversight committee and meets at least quarterly. To address this risk. To review the credit portfolio. implemented and are not in conflict with any of the applicable laws and regulations. to set standard and appropriate risk limits and controls to ensure quality of portfolio and credit process. Risk management policies are reviewed annually to reflect changes in economic environment. fluctuation in oil prices and /or global meltdown etc. Rupee devaluation. inflation. To oversee implementation of credit risk related policies and procedures relevant to all business units through review of standard MIS decks. Credit Risk Committee (CRC) is established under the leadership of the Chief Risk Officer (CRO) of the Bank and membership comprises the President and Senior Management of the Bank. primarily through Key Risk Indicators. Operational Risk Committee (“ORC”) In our normal business activities there is a need to effectively manage potential risk arising out of banking operation of the Bank. broadly include the following: Annual Report 2015 187 . market conditions and products offerings. and to assess: – – – – quality of the portfolio. RISK MANAGEMENT The risk management framework of NIB is approved by the Board of Directors (“BOD”) and implemented by the senior management. Its objective is to derive the most appropriate strategy for NIB in terms of mix of assets & liabilities given future expectations and potential consequence of interest rate movements. The main objective of the CRC is to ensure effective and proactive management of Credit Risk throughout the Bank in accordance with the Risk Management Framework and related Risk Policies and Procedures. and foreign currency exchange exposure and capital adequacy. Terms and references of the CRC. liability constraints. 2015 43. recovery of remedial accounts. To review stress testing on portfolio considering the major factors like interest rate sensitivity. which meets on a monthly basis. The BOD sets forth the vision and strategy of NIB and has entrusted the monitoring to the Board’s Risk Management Committee (“BRMC”). The BRMC relies on three management committees namely the Asset Liability Committee (“ALCO”). broadly include the following: To ensure that all relevant risk policies of the Bank are developed. Operational Risk Committee (ORC) is established under the leadership of the President of the Bank and membership comprises the CRO and Senior Management of the Bank.

through KRIs and appropriate management action as per defined thresholds. Business or Function are notified to the affected entity Risk Control Owner. NIB has established an appropriate credit risk environment which is operating under a sound credit-granting process. There is a proper credit delegation matrix for review and approving credit applications. maintain and review a consolidated MIS of key operational risks in the Bank in the form of Risk & Control Assessment Matrix. Cross-border assets also include exposures to local residents denominated in currencies other than the local currency. The risks are inherent in loans and bills receivable from non-bank customers. interest-bearing deposits with other banks. maintaining an appropriate credit administration. overnight/over weekend. 188 Annual Report 2015 . Cross-border risk is the risk that we will be unable to obtain payment from our customers or third parties on their contractual obligations as a result of certain actions taken by foreign governments. In this situation 100% of the principal amount is at risk. To review Ops Loss Data (OLD) and take proactive measures to reduce Op Losses. commitments to lend. Risk Management Organization at the Group The Chief Risk Officer (“CRO”) is responsible for enterprise wide risk management and implementation of the overall risk management framework of NIB. securities borrowing and lending transactions. responsible for Corporate. and that risk control and risk origination decisions are properly informed. Cross-border assets comprise loans and advances. Corporate Credit Risk Management also approves exposure to Financial Institutions. All credit approvals are accorded by the Credit Officers/Senior Credit Officers in the Risk Management Group. 2015 To ensure operational risk identification and measurement covers all activities/products/processes of the Bank. To monitor all material Operational Risk exposures and key external trends. or in some situations even longer. Clean risk at liquidation or settlement risk occurs when items of agreed upon original equal value are not simultaneously exchanged between counterparties and/or when items are released without knowledge that countervalue items have been received by the Bank. Liquidity and Operational Risks respectively and they are responsible for ensuring the implementation of NIB’s risk framework. and five Risk Heads. certificates of deposit and other negotiable paper. To direct appropriate action in response to material events. To ensure any areas of potential overlap with another entity or Risk Control Area. Commercial/SME and Consumer Finance businesses and Market. acceptances. Bank’s policies and Central Bank regulations in their respective domains. Portfolio Risk and Country Risk Assessment. and formal commitments where the counterparty is resident in a country other than where the assets are recorded. The CRO is supported by a Chief Operating Officer . in accordance with Operational Risk policies and procedures. the CRO has to ensure that the risk organization structure of NIB is equipped with the best people. and compliant with the Bank's standards and applicable regulations. To develop. Typically the duration is intra-day. Business or Function Head.Notes to the Consolidated Financial Statements For the year ended December 31. chiefly relating to convertibility and transferability of foreign currency.1 Credit Risk Credit risk is the risk that a counterparty or customer will be unable to pay amounts in full when due. The risk is that we deliver but do not receive delivery. NIB’s main credit exposure arises from the risk of failure by a client or counterparty to meet its contractual obligations. NIB has established limits for cross-border exposure and manages exposures within these limits. securities or other assets as contractually agreed. 43. In this respect. trade and other bills. risk issues or themes that come to the Committee's attention. amounts receivable under finance leases. measurement and monitoring process and ensuring adequate controls. For risk management reporting purposes the Bank considers and consolidates all elements of credit risk exposures.Risk responsible for Risk Policies & Procedures. Businesses have no credit approving authority. policies and processes. Settlement risk is the risk of loss due to the failure of an entity to honor its obligations to deliver cash. Trade Finance. which enable it to perform efficiently and effectively. The risk may be larger than 100% if in addition there was an adverse price fluctuation between the contract price and the market price. repurchase agreements. and contingent liabilities.

This rating system is being continuously fine tuned to address regulatory and global benchmarks. Credit quality is determined based on three pillars: namely business prospect. Write offs NIB’s Write off Policy is laid out in line with the SBP rules. in order to measure credit risk. service and operation of the company. Financial assets carried at fair value through profit or losses are not assessed for impairment since the measure of fair value reflects their credit qualities. production. For the monitoring of the credit quality of the financial assets not carried at fair value through profit or loss. Insights into the major factors influencing customer attrition and product cancellation. NIB follows the guidelines issued by the State Bank of Pakistan.Notes to the Consolidated Financial Statements For the year ended December 31. financial performance and repayment capacity. 2015 The concept of “three initial system” is very much in existence in NIB. his/her Team Leader and Regional Head/Corporate Banking Head/Group Head. and Establishment of acceptable risk levels. The essence here is that the credit proposal must not be left to the sole judgment of one person – rather. The Bank manages credit risk through: – – – – Accurate and detailed information about the borrower. an indigenously developed rating system is followed. Annual Report 2015 189 . All credit write offs are approved under the approved delegation matrix. Writing off a loan in no way implies that the Bank has given up its claim on a borrower and does not impact the Bank’s ability to legally collect written off credits from the customer(s). the application of minds must be diverse and independent of each other. NIB manages credit risk through: Post-disbursement maintenance of accounts through Credit Administration Department (“CAD”) reporting into a CAD Head. Submission of regulatory returns pertaining to reporting of NIB’s portfolio Impaired financial assets Impaired financial assets including loans and debt instruments are those which NIB determines that it is probable that it will not be able to collect all principal and interest due according to the contractual terms of the agreement(s) underlying the financial assets. cash flows. any initiating unit has to have formal recommendation by the Relationship Manager. Credit and collections treated as a highly people-intensive business. The CAD Head has direct reporting line to the CRO. Further. Based upon regional considerations and availability of Credit Talent.

14 2.73 14. Gas.314 0.404 13.840 6.600.06 Exports / Imports 1.250 2.88 10.29 2. 2015 43.74 422.115.69 152.508 0.98 209.61 283.86 3.05 6.612 0.203. Forestry.14 386.00 75.20 1.047 25.646.94 147.075.1.930 8.299 0. Sanitary 190 – 14.446 4.313.874 1.981.428 2.196 0.04 10.195 1.67 704.51 Textile 34.801 0.668 0.99 Transport.02 2.031 9.41 Others 4.052.724.001.40 Services 1.229.449 0.19 2.753 2.515 3.166 3.481.97 – – – 2.014.24 3.741 1.627.770 4.996 3.90 36.30 447.34 38.84 28.399.612.42 10.913.840 0.049.459.91 790.38 Financial 2.619.22 29.22 Cement.58 1.574.90 3.529.933.320.693.577 21.263.28 Sugar 4.00 130.258 10.1.523 0.683 4.024 100.032 0.05 179. Storage and Communication Power.758 2.1 Segmental Information 43.510 0.103 3.94 7.590 2.231.408 1.256 0.41 5.08 2.847 0.079 3.02 Automobile and Transportation Equipment 855.48 3.926.21 3.429 100. Glass and Ceramics Chemicals and Pharmaceuticals 3.56 4.753 1.035.107 6.047 1.1 Segments by class of business 2015 Advances (Gross) Contingencies and Commitments Deposits (Rupees in ‘000) Percent (Rupees in ‘000) Percent (Rupees in ‘000) Percent Agriculture.54 407.601 39.394 10.56 12.01 54.410 0.223.161 7.67 4.888 1.88 3.227 7.06 731.061.1.00 Annual Report 2015 .80 5.77 969.408.77 2.925 0.11 1.190.314.886 2.328 7.224 1.186.028.01 – – 24.791.165 4.21 2.Notes to the Consolidated Financial Statements For the year ended December 31.43 7.103 0. Hunting and Fishing 194.256.449.346 0.800 2.482 0.88 46.260.74 4.54 5.163.011 0.29 Paper and Printing 1. Water.423 5.399.22 Construction 1.350.308.89 – – Electronics and Electrical Appliances Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas 6.642 4.420.956 27.256.63 901.356 3.075.287 0.171 1.71 Wholesale and Retail Trade 3.383 3.926 0.017 4.443.07 Engineering 5.429 0.182.643 100.25 135.013.951 0.17 17.

653.625 Contingencies and Commitments Deposits Percent (Rupees in ‘000) Percent (Rupees in ‘000) Percent 13.252.396.205.349 0.541 68.234 2.02 17.81 3.974.800 10.119 130.05 1.50 3.652 50.492.11 86.402.678.949 7.85 2.51 4.00 43.31 1.399.581.03 1.11 0.133 – 276.52 2.705 266.446 2.595 124.10 1.00 19.374 595.00 11.65 1.060.33 100.211.915 906.556.02 8.029 364.497 2.957.325 700.09 3.425 4.39 0.75 2.220 9.012 93.338 79.845 2.465.071.00 108.389 3.742 111.127.83 0. Hunting and Fishing Automobile and Transportation Equipment Cement.819 429.968 315.74 120.007 2.794 36.102.129.00 191 .305 108.028 98.666 20.33 10.25 4.482 8.920 9.07 100.00 0.90 0.169.784.00 105.442 1.597 4.411 48.609.652.06 0.71 0. Forestry. Storage and Communication Wholesale and Retail Trade Others 40.996 135.11 3.206.421.72 5.04 30.451 1.95 0.48 6.484.024 Contingencies and Commitments Deposits Percent (Rupees in ‘000) Percent (Rupees in ‘000) Percent 26.63 100.18 8.975 34.77 – 0.653.550.506 3.55 0.065 6.400 6.93 73.70 2.78 92.627.26 0.022.399 4.757 100. Glass and Ceramics Chemicals and Pharmaceuticals Construction Electronics and Electrical Appliances Engineering Exports / Imports Financial Food and Beverages Footwear and Leather Garments Individuals Insurance Mining and Quarrying Non Profit Organizations / Trusts Oil and Gas Paper and Printing Power.26 0.90 0.1.053.350.260.02 6.54 3.31 1.662.971 280.934.260 2.452 100.85 0.187.37 90. 2015 2014 Advances (Gross) Contingencies and Commitments Deposits (Rupees in ‘000) Percent (Rupees in ‘000) Percent (Rupees in ‘000) Percent Agriculture.836 5.563 2.998 2.603 102.558 4.409.433 1.498 6.55 0.524 111.526 145.308.00 8.294.521.823.429 9.650.51 4.673 11.800 100. Sanitary Services Sugar Textile Transport.00 7.826.11 3.578 3.Notes to the Consolidated Financial Statements For the year ended December 31.780.492 772.452 0.473.444 8.236. Gas.36 0.666.89 100.398.73 6. Water.686.67 2.06 7.746 1.07 8.77 3.67 85.13 0.678 4.84 8.24 – 0.040.810 1.048.816.27 2.095 1.643 14.805 46.441 1.625 100.028.346 4.587 2.25 0.672 6.102.467 – 67.957.22 100.466 2.193 16.050 10.2 Segment by sector 2015 Advances (Gross) (Rupees in ‘000) Public/ Government Private 36.881 839.888 75.30 32.314 804.371.361.788 105.531.234.635.407 5.74 1.419.13 42.04 100.909 825.1.757 Annual Report 2015 7.272.295 984.11 2.55 0.022 117.68 2.53 0.68 1.05 0.00 2014 Advances (Gross) (Rupees in ‘000) Public/ Government Private 15.216 9.77 7.33 117.96 89.04 7.772.25 0.51 2.73 4.219.86 0.803 390.714.655 718.

204.224 24.884 969.962 366. Glass and Ceramics 609.921 415.485 961.154.829 527.908 535.118 600.638 25.255 125.203 Footwear and Leather Garments 272.118 2.320 Chemicals and Pharmaceuticals 598. Storage and Communication Wholesale and Retail Trade Others 815.282.017.894 492.815 26.658 _ 29.514 377.015.184 _ 23.184 23.976 Transport.941.855 Paper and Printing 593.542 – 119. 2015 2015 Classified Specific Advances Provisions Held Classified Advances 2014 Specific Provisions Held (Rupees in ‘000) 43.637.885.457 1.1.867 11.755 Oil and Gas 12.885.717 2.393.764 504.107 12.634.204.776 213.716 366. Hunting and Fishing – Automobile and Transportation Equipment 715.173.200 406. Gas.525 394.139 93.450 – 717.042 1.173.985 2.017.198 581.207.370 1.300 21.287.366 – 162. Forestry.098 593.224 24.662 101.813 23.378 2.179 635.658 29.1.973 Construction 418. Sanitary 379.409 28.813 .204.983 563.808 16.412 13.432 581.104 638.292.663 Services 902.017.234.993 209.327 643.516 – Cement.1. Water.099.813 2015 2014 Classified Specific Classified Specific Advances Provisions Advances Provisions Held Held (Rupees in ‘000) 43.4 Details of non-performing advances and specific provisions by sector Public / Government Private 192 Annual Report 2015 _ _ 28.849.205 2.969 Individuals 695.618 Sugar 645.020 Mining and Quarrying 23.665 2.070 2.658 28.625 762.224 24.908 704.184 29.099 2.092 1.863.885.405 Textile 13.321 176.123 761.816 Power.639 505.905 8.651 130.884 503.841 1.443 Electronics and Electrical Appliances Engineering Financial Food and Beverages 23.335.529.Notes to the Consolidated Financial Statements For the year ended December 31.826 – 616.763.3 Details of non-performing advances and specific provisions by class of business segment Agriculture.1.373 534.168 585.173.842 734.842 846.171 540.450 649.

136 245.757 2014 Pakistan 43. Currently Bank’s risk appetite for market risk is a combination of notional and sensitivity based limits.260.301 Market Risk Market risk refers to the potential loss that an entity may be exposed to due to market volatility.089. VaR and interest rate sensitivity analysis.703 18. foreign exchange (“FX”) rates and equity prices. 43.029.1 Foreign Exchange Risk NIB has set the following objectives for managing the inherent risk on foreign currency exposures: Maximize profitability with minimum risk by keeping the exposure at desirable levels in view of strict compliance of regulatory/international standards and the Bank's internal guidelines.2 (107. Following are the regulatory and internal guidelines monitored by Market & Liquidity Risk Unit (MLRU): – Foreign Exchange Exposure Limit – Equity Exposure Limit – FX Tenor mismatch – DV01 – VaR NIB also applies a Value-at-Risk (VaR) methodology to assess the market risk positions held. Interest rate risk The principal risk to which NIB’s portfolios are exposed is the risk of losses from fluctuations in the future cash flows or fair values of financial instruments because of a change in market interest rates.Notes to the Consolidated Financial Statements For the year ended December 31. Currently NIB is using historical simulation model for calculating VaR.1.897) 194.995.1.429 16.932.159 75. which are being adopted from regulator and followed vigorously. It is important for the Bank to put in place an effective market risk management framework to manage its market risk exposures. Annual Report 2015 193 . Bank has adopted a market risk management structure that commensurate with its size and the nature of its business activities and facilitates effective management oversight and execution of market risk management and control processes.957.5 Geographical Segment Analysis Pakistan 4.219 108.2. Interest rate risk is measured through DV01. 2015 2015 Profit / (loss) before taxation including discontinued operations Total assets employed Net assets employed Contingencies and Commitments (Rupees in ‘000) 43. Market risk arises from all positions in financial instruments held by the bank (Either in Trading or Banking book) which exposes the Bank to market risk factors namely interest rates.042.

092.953.703 226. NIB reviews new products to ensure that market risk aspects are properly quantified and mitigated.379.159 2014 Pakistani Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 43.240 6.092 169.979) 697 2.413 76.555 218.617 (146.723 26. Further.297 423.490 54.814 (4.219 Equity price risk and fixed income rate risk Equity price risk is the risk to earnings or capital that results from adverse changes in the value of equity related portfolios of NIB.368 (86.932.610 255.104) 1.510 1.089.177 4. Usage of different tools to manage the inherent risk of product and market. NIB conducts stress testing analysis over the equity portfolio.032.129 1.Notes to the Consolidated Financial Statements For the year ended December 31.184.301 178.171) 805.707 18.882 6. NIB takes steps to ensure that foreign currency exposures adhere to regulatory or international standards and NIB’s internal guidelines.554 245.948 (14.669 140.745 923 13. NIB uses tools such as Foreign Exchange Exposure Limit (FEEL).097 460.544 2. monitoring of foreign exchange exposure limit.568 1.752 1.458.650 9.262 1. by anticipating changes/shocks of -30%.258 1.511) (1.628 26.146.986.513 331.042. -40% and -50% on the current price of shares within a portfolio.318) 867.358 2.276 2.007.2 Assets Liabilities Off Balance sheet items 186.325.226 344.765.294) – 17. 194 Annual Report 2015 .813.627.979 – (8. 2015 Assets Off Balance sheet items Liabilities Net foreign currency exposure (Rupees in ‘000) Pakistani Rupee United States Dollar Great Britain Pound Euro Japanese Yen Swiss Franc Others 233.995.761 8. VaR and FX tenor gaps to monitor FX risk.815 37. review of marked to market portfolio etc.077 _ _ _ 194. 2015 Manage appropriate forward mismatch gaps.904.043 (3.2.683.015 34 1.525) 16.330 1.462 836 13.387 15. thereby monitoring the effects of the predicted changes in the structure of shares portfolio on the Capital Adequacy Ratio (“CAR”).082 _ Net foreign currency exposure 17. such as compliance of credit limit.057.408.423 10.420.063.

044 1.110 – 69.042 Non financial net assets (38.015.914 – Liabilities held for sale 4.345.118 (894.509 7.089.943 18.459) 11.581 – – 3.324 – – – 6.694 – 54.898.231 7.461 487.820.543 Non-interest Over bearing financial 10 Years instruments Notes to the Consolidated Financial Statements For the year ended December 31.191 – – – Over 6 Months to 1 Year 1.670 71.118. 2015 Annual Report 2015 195 .668.627 11.843 23.044.355.574.666) (38.570 – – – Over 2 to 3 Years Exposed to Yield / Interest risk 2015 Details of the interest rate profile of the Group based on the earlier of contractual repricing or maturity date is as follows: 43.480.167.516 (53.481) Cumulative Yield / Interest Rate Risk Sensitivity Gap (4.942 – – – – – – – 10.117 3.874.601 – – 1.996 642.470 463.216 224.990.816 546 – – – 546 – – 2.404 – – – Over 3 to 5 Years 21.034 – 36.4.139 188.428.346 20.250.599.671 – Upto 1 Month 1.543 Total 93.576.818.419.449.439 82.247 49.865.573.870 – 85.914 – 61.954 2.261.58% 130.402.159 Off-balance sheet financial instruments 18.942 – – – 10.603 – – – 11.643 Deposits and other accounts 85.440 10.216 14.809.48% Bills payable 2.027 1.441) – – – (26.933 – 30.585) 3.472 10.38% Sub-ordinated loans Other liabilities 4.253.155.109 – – – Over 3 to 6 Months 71.438 – – 4.611 7.343 – 1.390 1.052.501 – – 564.481) 48.255 – 8.873 3.545.2.565 642.501 – – – – (3.901.935.800.493.sale 2.399.187 – – 1.502 – – – Over 5 to 10 Years 22.3 Mismatch of Interest Rate Sensitive Assets and Liabilities 10.074 – 1.888) (53.365 Off-balance sheet gap Foreign exchange contracts .883) (51.415 – – 10.196.796.264.030 4.196.69% 110.945.480.195.898.859.362 – – 1.022) 51.870 27.793.purchase 8.331.467.415 10.857.645.945.501 – – – 564.368.195.586 29.512 – – 1.811 – – – 8.778) (42.253.242.601 – – – 29.670.558.741 – 6.052.182.034 Total net assets On-balance sheet gap – 9.909.108 5.500.187 - – – – (Rupees in ‘000) Over 1 to 2 Years 4.324 (2.865.528 Foreign exchange contracts .824 (1.293) 4.973 564.802.166.603.676.226.599.05% Balances with other banks Cash and balances with treasury banks Assets On-balance sheet financial instruments Effective Yield / Interest rate (354.540 391.468) (26.954.867.883.573.924.501 – – – – – – – 564.792 1.324 188 – – – 188 – – 6.61% Investments 1.086 10.576.551.865.535.558.212) – – 4.942 – – 527.734 (2.924.388.586 – – – 1.441) 40.227 – – 11.999.945.050 – 32.415 1.816 – – – 2.466.50% Lendings to financial institutions – 0.125.994 Other assets Advances 1.216 Total Yield / Interest Rate Risk Sensitivity Gap 5.752.997.703 1.608.004.480.399.418.682 Borrowings Liabilities – Assets held for sale 2.567.044 36.692.902 – 2.516 64.964.034 225.804) 43.936.304 42.984.530 6.924.951.226.932.770 – – – Over 1 to 3 Months 18.206 2.

208 – 17.554 (11.020.863.724) (16.658 9.434.461.112.249.834.800 62.894 2.458.896 8.992 – 561.572 6.269.175.842 – – 3.036.906 1.105.170.259) 5.722.494 10.060 176.86% Investments 7.060 3.730.841 1.257) (67.798 2.452 22.853.614.351 24.201 – – – 8.539.759) – – (61.614.181 16.740.610 527 – – 527 – – 8.693.727.654.833 – – – Over 5 to 10 Years 39.522 – Upto 1 Month On-balance sheet gap – 5.15% – Total Balances with other banks Cash and balances with treasury banks Assets On-balance sheet financial instruments Effective Yield / Interest rate 2014 Exposed to Yield / Interest risk 18.653 – 856.539.353 – – – Over 2 to 3 Years Cumulative Yield / Interest Rate Risk Sensitivity Gap 12.699.485 – – (61.665.364 – – – 24.327 9.063.962.779.379.379.702 578.sale 6.425 4.675 – – – 19.876 – 59.591 6.000.932.297 – – – (Rupees in ‘000) Over 1 to 2 Years (6.724) 44.663.812.310 (18.668 Foreign exchange contracts .420.010 3.175.197.943.842 – – 28.002 7.750.689.489 – 34.756 3.032.78% Deposits and other accounts Other liabilities – 9.649 5.219 Total net assets 10.243 969. 2015 .236.21% Bills payable Borrowings Liabilities 59.562 – – – Over 3 to 6 Months 14.384.528 174.418 8.069.500) – 4.195 8.371.863.594 900.050 40.553) – – – 622.273.730.675.550.721) 622.034) 44.196 Annual Report 2015 93.543 2.534 92.616.013) 5.772 – – 4.012.444) (17.481 – 622.528 18.639.113.purchase Foreign exchange contracts .811 4.010 2.236 5.262.710 22.91% Lendings to financial institutions 586.242 – – 51.349.494 7.489 4.539.812.151 – – 5.989.670.300 3.204 22.371.262.449.092.531 23.956.874.740.829.123.491 – 6.621.060 – 705.063.241.646 9.913.481 – – – – Non-interest Over bearing financial 10 Years instruments Notes to the Consolidated Financial Statements For the year ended December 31.364 – – – – – – 24.154.482.762 18.272 – 9.137 – 1.565 – – – Over 3 to 5 Years Total Yield / Interest Rate Risk Sensitivity Gap Off-balance sheet gap 705.725 497.740.610 (5.454 – 11.151.832 (1.288 4.874.892.250 – 17.849.791.000 55.814.460 5.151 – – 2.997 – – 5.434) (14.547.675 0.553) – – – – – – 622.101.725 – 5.576.255 – – – Over 6 Months to 1 Year 436.673.691 9.297 24.623) – – 8.998) (23.364 – 685.239) (27.481 (21.08% Advances Other assets 11.01% 10.28% Sub-ordinated loans 5.464) 5.122 2.811 28.161 – 964.575.864 4.481 (21.863.098.195 105.372.109.192 – 25.476 Non financial net assets Off-balance sheet financial instruments (4.918.651.197.349 – – Over 1 to 3 Months (1.

155.539.044 Investments 96. Liquidity risk is due to the difference between the Group’s assets and liabilities generally known as mismatches. even when the Group is solvent.1 Maturities of Assets and Liabilities .446 Intangible assets 890.633.053.125) 226.290.953 – – – 49. management is of the opinion that the possibility of these inflows / outflows actually occurring entirely within one month is remote.994 Operating fixed assets 3.512 997.312 – Over 3 to 6 Months 11.840.463.042.045 256.659.118) 17.685.216 85.086 1.182.280.339 51 – 1.349 761.380 – Upto 1 Month Assets Cash and balances with treasury banks 10.117 57.491 Deferred tax assets 9.942 589.452.499.741 130. 103.023.803.413.609 Other assets 7.299.806 18.806 – 30.951 – 2.979 Asset held for sale 4.558. Group maintains its liquidity by keeping a level of liquid assets in such amount which is considered sufficient to anticipate payment of customers' deposits.- Annual Report 2015 20.839 13. Consequently.854 160.576.657.096.695 8.366 1.038 – 53.543 Balances with other banks 1.157.488 190.812 468. Basel standards and best practices.359 27.648 273.597 Advances 110.159 Net assets Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets .588 81.086.543 1.506 – 25. either does not have enough financial resources to meet its obligation and commitments as they fall due or can secure funds at an excessive cost.601 1.854.611 64.118.159 176. However.571 – – – 1. 5-Day stress testing on Group’s balance sheet carried out on daily basis assuming 50% run offs in CASA (Current and Saving) deposits over 5 days. as these flows normally occur over a longer period of time.087 – Over 10 Years The above maturity profile has been prepared in accordance with International Financial Reporting Standard 7.353 248. Liquidity management is important as the ultimate cost of a lack of liquidity is being out of business.179 – – – 5.413.490 – Over 5 to 10 Years 10.3.366 632.407.600 102.314 10.117 840 235.769.887 – – – 2.316.379.118 2.610 12.187. Ensuring the Group has the right asset portfolio mix and sufficient liquid assets on hand in relation to its daily cash flows.333 – 9.547.950 137.765.680 245.851 235.026.414 28.690 41.078.865.867.069 2.995.697 1.216 71.614 9.052.235 (96.103 – 3.792 17.089.703 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Liabilities held for sale 10.911 – 15.680 16.457 7.415 24.110 245. 2015 197 .3 Notes to the Consolidated Financial Statements For the year ended December 31.085.354 161.914 Total 2015 Over 2 to 3 Years Controlling the cash flow mismatch between on and off balance sheet assets and liabilities through MCO.761 – Over 3 to 5 Years 4.681.547.580 – – – – 10.Based on contractual maturity of the Assets and Liabilities of the Group 43.899 4.599.002 3. all demand assets and liabilities such as running finance.643 4.804 109. Liquidity Risk 43.713 – – – 20. based on historical behaviour.013 642.997.547 – 5.110 10.239.761 – – – 10. Liquidity risk is defined as the risk that a Group.099.660.363.377 60.028.463.576.415 80.416.660 27.023 128.447 – 162.064 385.903 4.046 123.052.631.788 – – 29.263 – 3.039.516 3.288 6.509 – 1.471 4.308 – – 71.399.569.078.759 1.618 4.245 – 18. and Stress testing on portfolio as required by local regulator The Group manages its liquidity risk through: The liquidity risk policy is formulated keeping in view of the SBP's guidelines on risk management.790 – Over 6 Over Months to 1 1 to 2 Year Years (Rupees in ‘000) 18.300.402 – – – 687.869 642.648.386 54.599. current accounts and saving accounts are shown as having a maturity upto one month.979.387 – – 188 3.050 21.850 15.449.730.914 Over 1 to 3 Months 13.292.195.515 25.735 – 276.751 317.042.646. Maintaining stable and diversified sources of funding.044 1.732 – – 546 1. Financial Instruments: Disclosures.286 – 4. based on contractual maturities.359.582 (45.547 5.645.623) (40.212.668.613 – 13.953.136 2.939 6.645.450.868 336.086 Lendings to financial institutions 1.net 2.214 840 575.089.544 18.483.572 58.468 – 746.676.430.558.050 9.344.984 – 7.127 – – – 2.

800 4.471 – – – 3.751 – 902.349 1.655.726.200 Over 3 to 5 Years 23.658 – 1.063.612 8.675 586.301 13.063.494 3.592 5.960 58.527 – – 2.219 16.881.403 Over 3 to 6 Months 2014 45.767 736.033.992.646 59.075 9.418 7.577 11.714 244.363 2.537 260.197.301 2.206 3.285 53.543 840 111.432.390 59.272.811 10.601 160.193 – – – 5.239.241.995.197.053.726 – 31.362 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 13.672 1.531 158.851.874 2.457.971.796 64.123 194.656.350.117) 178.081 Total (328.593.876 4.102.782. 2015 .695 11.033.466.934.340) 2.820 – – – – 8.024.116 1.359 27.198 Annual Report 2015 Shareholders' equity Surplus on revaluation of assets .550 412.834.276.528.589 31.442 Upto 1 Month 8.673.088) 16.028 86.758.885.300.222.525 27.188.259.836 15.894 105.836 – – 527 3.485 4.979.842 1.123 (45.926.956.093 2.123 Over 2 to 3 Years 17.287 1.804 320.827 257.269 191.454 5.836 Over 5 to 10 Years 8.923 313.730 7.403.447.142 7.286 2.677 1.292 – 9.250 8.675 586.327 840 455.648 41.948.518.282 – – 969.507 238.415.950 17.666 224.840 534.528 62.895 139.181) 18.138.512 474.286 – 4.937.820 8.467.451.215.631.125 – – – 5.213.567 – 2.297 1.498 Over 10 Years Notes to the Consolidated Financial Statements For the year ended December 31.610.699.532 4.931.607 – 162.262.271.665 8.570 266.325 1.680 11.200 26.932.730.867 117.235.net Share capital Reserves Discount on issue of shares Accumulated loss Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 130.418 6.869 27.425 – – – 7.782.640 Over 1 to 3 Months (3.082 16.427 5.183.586.136 310.740.506 365.769.933 77.164 9.675.086 367.623) (42.111 – – – 6.750.660.287 – 1.340.139 – – – 23.740.875 15.370 – 9.352.550.234.063.827 3.195 3.219 15.028.558 7.240 (53.925.029 80.779.547 103.373.152 1.395 1.057 2.432 – – – 4.415.899 369.474.823 – – 28.528 40.932.691 93.670.680 220.

759 1. Whereas.3.997.600 14.435.179 – – – 5.155.413.643 4.695 23.556 840 575.124) 37.741 130.280.631.402 – – – 687.576.363.657.044 96.375 – 3.582 (45.380 – 10.761 – – – 10.339 51 – 1.038 – 77.044 1.093.950 137.450 – 746.643.114 27.979.354 161.053.633.994 3.073 6.697 1.580 10.645.157.023.089) 226.042.416.117 57.515 25.426.400.942 589.790 – Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 6.611 19.366 1.159 2.244.554 – – 6.632.840.050 21.868 336.959 13.316 1.490 – Over 5 to 10 Years 5.735 – 2.329 – – 6.802 840 235.457 7.078.029 21.390.981 – – – 20.680.308 – – 71.050 17.571 – – – 1.349 761.086 1.869 642.576.571 4.187.516 3.064 385.547 – 5. Non-core and Core balances are equally distributed in time buckets from 1 month till 1 year and from 2 years till furtherest available time bucket respectively.449.543 1.475.359 27.850 23.386 54.288 6.558.488 190.450.645.572 58.127 – – – 2.128 245.680 245. non-core balances are considered volatile and expected to attrite from our books in the short run.316.547.951 – 35.543 1.953.052.847.899 16.136 2.042.217 (53.118 27.614.681.069 2.362.758.312 – Over 3 to 6 Months 2015 50.812 468.390 160.258.914 16.939 6.465 – 7.555 60.599.979 4.489 – – – 49.660 27.415 10.512 997.867.761 – Over 3 to 5 Years (22.914 Upto 1 Month 7.353 248.415 32.547 – – – – 10.286 33.099.704.078.88.227.765.069.378.623) (40.379.680 16. volatility is calculated using standard deviation and scaled for computing respective tenor volatility.159 103.Based on historical pattern of the Assets and Liabilities of the Group Notes to the Consolidated Financial Statements For the year ended December 31. non-core balances for Running Finance are placed in 1-month bucket and core balances are equally distributed in buckets 2-months till 1-year.065 – – – 2.806 18.118) 17.766.806 – Over 2 to 3 Years 4.494.599.216 85.491 9.068. Non-contractual assets and liabilities have been profiled by using Core/Non-core Balance Methodology.884.703 2.940.023 128.446 890.086.558.085.648 273. Similarly.216 71.731.609 7.089.110 15.399.685.261 1.676.046 123.085.600 25.911 – 15.851 235.952 – 3.359.290.618 4.220 – – 13.544 18.195.366 632.767.471 4.245 – 18.441.799.333 – 9.013 642. Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets .087 – Over 10 Years In order to work out non-core balances.292.422.769.681.052.089.890.432 28.506 – 37.086 1.597 110.net Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Liabilities held for sale Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets Assets held for sale Total Over 1 to 3 Months 43.751 317.071 – 1.588 81. 2015 Annual Report 2015 199 .026.463. Core balances are defined as those which are expected to remain in our books for a longer period and thus placed in longer time buckets.616 3.045 256.002 3.668.613 – 13.885 – 162.483.854.096.2 Maturities of Assets and Liabilities .072 109.028.017 6.

142 – – – 7.705 1.200 Over 3 to 5 Years (7.059.219 2.411 840 8.432 – – – 4.418 7.547 16.937.net Net assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Other liabilities Assets Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Intangible assets Deferred tax assets Other assets 55. 2015 .250 14.665 8.675.979.028.167 258.102.325 1.944.080 – – 5.983 320.740.820 – – – – 8.498.726 – 31.800 24.451.095.672 1.769.114 313.276.349 1.033.164 9.874 2.577 6.432.540.098 – 9.528 62.230 Upto 1 Month 8.859.352 158.565 29.190.222.272.851.899 369.142 18.881.867 117.680 11.422 – – – 5.924 – – – 5.086 368.671.333 136.946.116 1.136 310.640 Over 1 to 3 Months 1.028 11.263.403.884.367.992.675 586.123 (45.777 – – – 3.318 238.574 Over 6 Over 1 Months to 1 to 2 Year Years (Rupees in ‘000) 8.714 244.261 840 558.363 2.077 160.452.232.287 – 1.731 – – 969.399 5.767 736.623) (42.655.876 9.340) 15.673.811 17.631.285 53.677 23.836 Over 5 to 10 Years 8.670.586.685 263.796 64.675 586.294.827 3.443 257.300.747 26.524 27.834.457 – 902.321 4.990 80.466.219 103.301 2.740.863.123 Over 2 to 3 Years 7.063.418 6.779.550 423.417 194.259.403 Over 3 to 6 Months 2014 8.297 1.301 13.615 – 1.510 – – – 6.200.396 1.173.271.204.286 2.206 3.839 59.350.950 17.223.395 1.400 5.270 – 2.612 8.157.152 21.133.269 191.057 2.195 3.494 3.927 – 162.800 4.063.427 5.319.960 18.284.782.699.183.620 – 9.634 3.656.111 20.094.932.456.129 23.075 9.934 36.840 534.053.894 105.200 Annual Report 2015 Share capital Reserves Discount on issue of shares Accumulated loss Shareholders' equity Surplus on revaluation of assets .528.726.512 474.981) 35.532.695 11.228.081 Total 2.691 93.789.093 2.029.557.506 365.454 18.932.775 26.352.530) 178.063.138.528.213.646 59.377 – – 5.412 25.844 5.356.188.680 220.485 4.368.730.947 (18.528 40.286 30.943 – – 10.498 Over 10 Years Notes to the Consolidated Financial Statements For the year ended December 31.058.468.287 1.878.820 8.359 27.160.750.199 10.926.805.550.082 16.946 – – – 23.197.995.

4 Operational Risk Management The Bank defines operational risk as the risk of loss resulting from inadequate or failed internal processes. 44. Operational Risk System has been rolled out Bank . operational loss incidents and testing of controls are now captured in the Operational Risk System.Notes to the Consolidated Financial Statements For the year ended December 31. Treasury and Retail. Businesses are now more focused on their relevant Operational Risk issues. DATE OF AUTHORIZATION FOR ISSUE These unconsolidated financial statements were authorized for issue on February 24. to facilitate comparison and to conform with changes in presentation in the current year. The Operational Risk Committee (ORC) oversees the processes for sound operational risk management and also serves as an escalation point for critical operational risk matters within the Bank. Within the Integrated Risk Management Group. A sound internal governance structure enhances the effectiveness of NIB’s Operational Risk Management and is accomplished at the enterprise level through formal oversight by the Board.wide. and – at the business and enterprise control function levels to address operational risk in revenue generating and non-revenue generating units. integrated management of operational risk across the Bank. Atif R. The Bank seeks to ensure that key operational risks are managed in a timely and effective manner. GENERAL Comparative information has been re-classified. 2016 by the Board of Directors of the Bank. Bokhari Teo Cheng San. 2015 43. BCP being part of Bank’s control activity is now under the umbrella of Operational Risk Management Unit and fortifies the Integrated Risk Management Group. the Operational Risk Unit is now further strengthened after formation of Business Operational Risk Committees for Corporate and Investment Banking. The ORC reports operational risk activities to the Board Risk Management Committee. Roland Muhammad Abdullah Yusuf Asif Jooma President / Chief Executive Chairman / Director Director Director Annual Report 2015 201 . people and systems or from external events. re-arranged or additionally incorporated in these consolidated financial statements. Key Risk Indicators. NIB approaches operational risk management from two perspectives to best manage operational risk within the structure of the Bank: – at the enterprise level to provide independent. wherever necessary. the CRO and risk management committees aligned to the Bank’s overall risk governance framework and practices. 45.

202 Annual Report 2015 .Annexure . 500.000 and above are disclosed in annexure .000 and above Details of loan write offs for the year ended December 31.1 Details of loan write offs of Rs. of Rs.1 of the Unconsolidated Financial Statements. 2015. 500.

FINANCIAL AND MANAGEMENT
SERVICES (PRIVATE) LIMITED

The Bank has not consolidated the financial statements of Financial &
Management Services (Private) Limited (“FMSL”) - Subsidiary, as the investment
is fully provided for. The Bank has also received relaxation from Securities
and Exchange Commission of Pakistan (SECP) of the requirements of Section
237 of the Companies Ordinance, 1984 through SECP letter EMD/233/654/2002406 dated November 27, 2015.
As per the requirements of the SECP, enclosed herein are the financial
highlights of FMSL for the year ended December 31, 2014 and the Auditors'
opinion.
Annual financial statements of FMSL would be available for inspection at
Registered Office of the Bank and would also be available to the members
on request, without any cost.

Annual Report 2015

203

Auditors’ Report to the Members
We have audited the annexed balance sheet of Financial and Management Services (Private) Limited ("the
Company") as at 31 December 2014 and the related profit and loss account, statement of comprehensive
income, cash flow statement and statement of changes in equity together with the notes forming part
thereof, for the year then ended and we state that we have obtained all the information and explanations
which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
It is the responsibility of the Company's management to establish and maintain a system of internal control,
and prepare and present the above said statements in conformity with the approved accounting standards
and the requirements of the Companies Ordinance, 1984 (XLVII of 1984). Our responsibility is to express
an opinion on these statements based on our audit.
We conducted our audit in accordance with the auditing standards as applicable in Pakistan. These
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
above said statements are free of any material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the above said statements. An audit also includes
assessing the accounting policies and significant estimates made by management, as well as, evaluating
the overall presentation of the above said statements. We believe that our audit provides a reasonable
basis for our opinion and, after due verification, we report that:
a)

in our opinion, proper books of account have been kept by the Company as required by the
Companies Ordinance, 1984 (XLVII of 1984);

b)

in our opinion:

c)

204

i)

the balance sheet and profit and loss account together with the notes thereon have been drawn
up in conformity with the Companies Ordinance, 1984 (XLVII of 1984), and are in agreement
with the books of account and are further in accordance with accounting policies consistently
applied;

ii)

the expenditure incurred during the year was for the purpose of the Company's business; and

iii)

the business conducted, investments made and the expenditure incurred during the year were
in accordance with the objects of the Company;

in our opinion and to the best of our information and according to the explanations given to us, the
balance sheet, profit and loss account, statement of comprehensive income, cash flow statement
and statement of changes in equity together with the notes forming part thereof conform with
approved accounting standards as applicable in Pakistan, and, give the information required by
the Companies Ordinance, 1984, in the manner so required and respectively give a true and fair
view of the state of the Company's affairs as at 31 December 2014 and of the loss, its cash flows
and changes in equity for the year then ended; and

Annual Report 2015

Auditors’ Report to the Members
d)

in our opinion, no zakat was deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII
of 1980).

We draw attention to note 1.2 to the financial statements which states that the Board of directors of the
Company in their meeting dated 25 March 2009 had decided to place the Company on a dormant status
and future regulatory expenses of the Company will be borne by the Holding Company. Our opinion is not
qualified in respect of this matter.

Date: 02 April 2015
Karachi

KPMG Taseer Hadi & Co.
Chartered Accountants
Amyn Pirani

Annual Report 2015

205

Financial and Management Services (Private) Limited
Balance Sheet
As at December 31, 2014

2014

2013

(Rupees ‘000’)

TOTAL ASSET

SHARE CAPITAL
Authorized share capital
300,000 ordinary shares of Rs.100 each

30,000

30,000

Issued, subscribed and paid-up capital

9,265

9,265

(9,265)

(9,265)

Accumulated loss

TOTAL EQUITY

Contingencies and commitments

Hakim Ali Laghari
Chief Executive

206

Annual Report 2015

Yameen Kerai
Director

Financial and Management Services (Private) Limited Profit and Loss Account For the year ended December 31. 2014 2014 2013 (Rupees ‘000’) Administrative expenses – (57) Loss for the year – (57) Hakim Ali Laghari Chief Executive Yameen Kerai Director Annual Report 2015 207 .

302.000.001 2.36726179 0.708.001 50.088.612 18.035.000.800 28.000.095 8.001 50.70961853 0.000.00052889 0.935 6.164 100. Development Financial Institutions.000.436 37.0048 0.000.001 200.001 100.626 2.Pattern of Shareholding as at December 31.764.001 300.000.39029698 0.420.22520465 0.24309399 0.778.001 20.001 1.001 900. Undertakings &Related Parties NIT & ICP Banks.440 16.001 3.14881342 0.935 68.000.36566425 0.303.000 4.190 16.000 800.665.483.22618150 0.5348 23.000 5.000 200. Chief Executive Officer.168 237.202.16641452 0.000.851.000.001 10.000 20.000.351 200.636.837 62.000 600.000.81029839 0.000 1.491 1.404 3. and their spouses and minor children Associated Companies.3404 0.0754 2.445 – 687.000 10.66547404 0.000.60207380 0.500 101.000 1.000 5.001 800.787 10.598 1.001 15.851.000 2.000 700.0000 .000.27584646 0.000.000.34021551 0.001 600.741 2.6033 – 23.0625 0.001 4.00996560 0.645 62.026.000 500.000 23.184 9.050 64.742 0.045.02582793 0.79675953 0.048 – 88.000.18226795 0.98718363 0.94738506 88.862.001 10.001 To 100 500 1.302.000.941 40.898 23.58923053 0.562.060 41.105.001 25.15611150 0.030.001 5.3807 0.000 3.000 25.673.164 100.3057 0.383 1. 2015 Shareholdings Number of Shareholders 1.013 25.332.000.001 30.000.000 30.105.796 82.025 23.20264768 0.843 20.000 50.814 15.125.051.143 83.598 0.545 73.00000000 Categories of Shareholders Category Directors.787 Shares held Percentage 54.728.000.000.437.767 35. Undertakings & Related Parties) General Public (including local & foreign individuals) Others Total 208 Annual Report 2015 Number of Shareholders – Shares held Percentage 1 3 – 9.000 10.6764 196 158.000 400.110.441 2.340 795 507 162 105 80 38 26 21 18 24 60 25 10 5 15 3 1 3 1 2 1 1 From 1 101 501 1.40631656 0.000.717 37.878.489 17.157.978 3.001 400.001 1.145.000.187.000.948 60.707.000 10.547.661.15564443 0. Corporations and Offices Executives/Employees Foreign Companies Shareholders holding 5% or more (Associated Companies.858.881 496.001 700.728.000 900.083.001 500.742 7. Non Banking Financial Institutions Insurance Companies Modarabas and Mutual Funds Public Sector Companies.000.022 0.0000 6.069.000 50.38066719 10.001 5.211.000.838.000 300.62300571 1.0162 28 12 14 6 19 63 35.000.000 100.000 15.

Pattern of Shareholding as at December 31, 2015

Details of Pattern of Shareholding
S. No.
1

Categories of Shareholders

Number of
Shareholders

Number of
Shares held

Percentage

Associated Companies, Undertakings & related parties
Bugis Investments (Mauritius) Pte Ltd

1

9,105,728,598

88.3807

NIT & ICP
CDC - Trustee National Investment (Unit) Trust
Investment Corporation of Pakistan

1
2

1,651,532
13,516

0.0160
0.0001

3

Directors, CEO and their spouses & minor children

4

Executives and Employees

5

Public Sector Companies, Corporations & Offices

6
7

2

0.0000

19

6,437,645

0.0625

6

237,547,935

2.3057

Foreign Companies

63

62,157,742

0.6033

Banks, Development Financial Institutions,
Non-banking Financial Institutions,
Insurance Companies, Modarabas & Mutual Funds

54

43,330,791

0.4206

23,445

687,858,022

6.6764

196

158,125,383

1.5348

23,787

10,302,851,164

100.0000

8

General Public (including local & foreign individual)

9

Others
Total

Details of Modaraba / Mutual Funds
S.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Number of
Shares Held

Name of Modaraba / Mutual Funds
Safeway Mutual Fund Limited
Golden Arrow Selected Stocks Fund Limited
First Tri Star Modaraba
Prudential Stocks Funds Limited
Unicap Modaraba
Safeway Fund (Pvt) Limited
First Interfund Modaraba
Industrial Capital Modaraba
Safeway Mutual Fund Limited
Asian Stock Fund Limited
Nationwide Modarba (Pvt) Limited
Prudential Stock Fund Limited
Golden Arrow Selected Stocks Fund Limited
CDC - Trustee AKD Opportunity Fund

651
2,127
6
3,367
2,152
1,965
289
575
1,812
575
50,000
4,223
5,872,955
1,823,471
7,764,168

Trades in the shares by Executives (Direct Reportees):
S.No.

Name of Executives

Purchase

Sale

1

Tufail Jawed Ahmad

110,000

0

2

Imtiaz Ahmad Sheikh

300,000

0

3

Zeeba Ansar

3,000,000

0

Annual Report 2015

209

Branch Network

ABBOTTABAD

GUJRANWALA

Al-Pine Hotel Branch
Khasra No. 2047, 2049, Near Al-Pine Hotel
Opposite Sui Gas Office, Mansehra Road
Abbottabad, Khyber Pakhtoon Khwa
Tel: 0992-344076-80, 9310315

Anwar Industries Branch
Khewat No. 1627, Khatooni No.1804
Khasra No. 5039/2529, Revenue Estate
Khiali Shahpur, Tehsil & Distt.
Gujranwala, Punjab
Tel: 055-4272160, 4272169, 4555091, 4272144

ATTOCK
Attock City Branch
Shop # B-III/37, C-152, Dr. Ghulam Gillani Burq Road
Attock City, Punjab
Tel: 057-2700903-04, 2701909

Al-Hameed Centre Branch
BX 11-7S-149, G.T. Road,
Gujranwala, Punjab
Tel: 055-9201234,9200234-37, 3254360

BAHAWALPUR
Bahawalpur Branch
913/2 BV, Near Fawara Chowk, Circular Road
Bahawalpur, Punjab
Tel: 062-2889371-72

GUJRAT

CHAKWAL
Chakwal Branch
B1-1/1634/1, B-1-1635, Talagang Road
Chakwal, Punjab
Tel: 0543-602049-52, 550121

HYDERABAD

CHAMAN

Cantt Branch
Plot # 53 & 54, Cantt Saddar
Hyderabad, Sindh
Tel: 022-2787462, 2784560, 2730685
2784647-48

Chaman Branch
Plot # 1332, 1333,
Chamber of Commerce Road,
Chaman, Balochistan
Tel: 0826-615217-9
DASKA
Daska Branch
Property # BV III-883,
Gujranwala Road, Near Canal Rest House,
Daska District Sialkot, Punjab
Tel: 052-9200080-85

Gujrat Branch
Shafique Plaza, Opp. Wahid Industries
G.T. Road, Gujrat, Punjab
Tel: 053-3530172-73, 3530289-90

Risala Road Branch
F-71/2, Risala Road,
Hyderabad, Sindh
Tel: 022-2731000, 2729437, 2785931-32

Market Area Branch
Plot # /1272/1, Sheet No.2, Ward “A”
City Survey, Market Area, Hyderabad, Sindh
Tel: 022-2635070-72

F-11 Markaz Branch
Plot # 18, Trade Centre, Main Double Road
F-11 Markaz, Islamabad
Tel: 051-2107862-65
F-8 Markaz Branch
Shop # 12 & 13, Al-Babar Center
F-8 Markaz, Islamabad, Punjab
Tel: 051-2818245-46, 2852653
I-10 Markaz Branch
Plot # 3-A, I-10 Markaz, Islamabad
Tel: 051-4447180, 4444619-20
PWD Employee
Coop. Housing Society Branch
40-B, Block-B, Commercial Area (Extension)
PWD Employees Housing Society, Lohi Bhair
Islamabad Highway, Islamabad
Tel: 051-4307195, 5854401, 5957660-61
JHANG
Jhang Branch
Khewat # 698, Khatoon.i # 203, Usaf Shah Road
(Opposite District Courts Jhang) District Jhang, Punjab
Tel: 047-7629590-92, 7629594
JHELUM
Civil Lines Branch
B-V-112, Resham Plaza, Civil Lines, Jhelum, Punjab
Tel: 0544-627286, 628677, 627128, 629909, 629174
KAMOKI
Kamoki Branch
Khasra # 9393 / 277 / 2, Khewat # 2008
Khatooni # 2157, G.T. Road, Kamoki Tehsil Kamoki,
District Gujranwala, Punjab
Tel: 055-6816723, 6816823, 6816923

FAISALABAD

Latifabad Branch
Plot # 175, Block "D", Unit # 7, Latifabad
Hyderabad, Sindh
Tel: 022-3818437, 3821641, 3821639

Liaquat Road Branch
Plot No. 3, Liaquat Road, Faisalabad, Punjab
Tel: 041-2604939-40, 2604935, 2604931-32,
2619563, 2541217

Qasimabad Branch
Plot No. B-01, GECH Society
Near Ali CNG, Qasimabad, Hyderabad, Sindh
Tel: 022-2670527, 2654801, 2654002

Kamra Branch
Khasra # 419, Masha-Allah Building Kutba More
PAC Chowk, G.T. Road Kamra Cantt
District Attock, Punjab
Tel: 057-2642511, 2642520-21

Gulistan Colony Branch
Commercial Center # 2, Millat Road,
Faisalabad, Punjab
Tel: 041-8846916, 8849935-36, 8847253

ISLAMABAD

KARACHI

Post Mall Branch
Plot # 3, F-7 Markaz, Post Office
Mall Building, Islamabad
Tel: 051-2653430, 2608017-18
2608010, 2653531-33

Gul Tower Branch
Gul Tower, I.I Chundrigar Road, Karachi, Sindh
Tel: 021-35277220, 32426140, 32419166, 111-333-111,
35277110, 35277271 Ext. 6261, 6112, 6230, 6231

Regency Arcade Branch
The Mall, Regency Shopping Arcade
Faisalabad, Punjab
Tel: 041-2604875-77, 2612890
Karkhana Bazar Branch
Property # 122, Khatooni # 1650
Khewat # 1647, Faisalabad, Punjab
Tel:041-2601805-08
GAWADAR
Gawadar Branch
Plot Khayut & Khatooni # 35, Thana Ward
Main Airport Road, Gawadar, Balochistan
Tel: 086-4212207-10

I-8 Branch
MB City Mall, Plot No. 34, I-8 Markaz
Islamabad
Tel: 051-4862279, 4862278, 4862280-86
F-10 Branch
Block # 1 R, Unit # 3, 4 & 5
Main Double Road, F-10 Markaz
Islamabad
Tel: 051-2215856-57

GHAKAR MANDI

E-11/3 Branch
Commercial Plot No. 2, Sector E-11/3, Islamabad
Gardens, Islamabad.
Tel: 051-2375343-44

Ghakar Mandi Branch
Khewat # 2414, Khatooni # 3600,
Khasra # 3359, Mauza Ghakar,
District Wazirabad, Punjab
Tel: 055-3886660-65

Centauras Mall Branch
Shop No. 313, 3rd Floor
Centaurus Shopping Mall, Islamabad
Tel: 051-111-333-111, 7122, 2701313

GUJAR KHAN
Gujar Khan Branch
Commercial Property # BIII 379 & BIII 377
G.T. Road (Near MCB), Gujar Khan, Punjab
Tel: 051-3513116, 3511894, 3513734-35
3511890

210

Annual Report 2015

Blue Area Branch
Plot No. 89, Blue Area, F-7 / G / 7
Bilal Plaza, Islamabad
Tel: 051-2277037, 2822936, 2277406-12
Stock Exchange Branch
Islamabad Stock Exchange
Rauf Center, 102, Fazl-e-Haq Road, Islamabad
Tel: 051-2806422, 2870952-54

KAMRA

DHA 26th Street Branch
42-C, 26th Street
Tauheed Commercial Area
Phase-V, DHA, Karachi, Sindh
Tel: 021-35304163, 35304159-60
Jodia Bazar Branch
MR 6/2, Market Plaza, Virjee Street
Karachi, Sindh
Tel: 021-32432849, 32443758, 32410395
North Karachi Industrial Area Branch
Plot # 1, Sector 12-B, Industrial Area
North Karachi, Sindh
Tel: 021-36962726-27, 36962724
Korangi Industrial Area Branch
Plot # SC-5, ST-17, Sector 15,
Korangi Industrial Area, Karachi, Sindh
Tel: 021-35114151, 35114153-54, 35114146
35114148, 35114350
Gulshan-e-Iqbal Branch
Plot # FL-2/3, Block 6
Improvement Scheme No. 24
Gulshan-e-Iqbal, Karachi, Sindh
Tel: 021-34986186, 34987547, 34991326
34897547, 34986387
Cloth Market Branch
Plot # 21/1, Bunder Quarters
Cloth Market, Karachi, Sindh
Tel: 021-32472148-49, 32471726-29

Branch Network

Steel Market Branch
Shop # G-2, Ground Floor, Plot # RC-1/11
Ranchore Quarters, Mehar Nawaz Building
Opposite Moin Steel Market, Mission Road
Karachi, Sindh
Tel: 021-32751031, 32751086, 32751066
32751093, 32751101
Regal Chowk Saddar Branch
Shop No G-1 /A and G /1
Artillery Maidan, 293-III B-192, Regal Chowk
Saddar, Karachi, Sindh
Tel: 021-32750007, 32750268, 32750264, 32750001
Orangi Town Branch
LS – 45, Sector 1-D, Orangi Town, Karachi, Sindh
Tel: 021-36695781, 36762506, 36667481
Allama Iqbal Road Branch
Plot No. 683-C, Ground Floor & Mezzanine Floor
Block-2, PECHS, Allama Iqbal Road, Karachi, Sindh
Tel: 021-34301814-15, 34301817-18

New Challi Branch
Plot # SR-6, Hussain Trade Center
Altaf Hussain Road, New Challi, Karachi, Sindh
Tel: 021-32211673-75, 32275637, 32216865, 2275634
Defence Phase-I Branch
19/C & 21/C, 21st East Street
Phase-I, Pakistan Defence Officers Housing Authority,
Karachi, Sindh
Tel: 021-35386881-83
Johar Morr Branch
Commercial Shop # 3,4,5 & 6, Javed Arcade
Plot # SB-1, Block # 17, KDA Scheme # 36
Gulistan-e-Johar, Karachi, Sindh
Tel: 021-34632745, 34632739, 34636746
SITE Branch
Shop No. 2, Plot B/9, SITE Area
Karachi, Sindh
Tel: 021-32562504, 32555051, 32562656

F.B. Area Branch
Plot # C-15, Block-13, F.B. Area,
K.D.A Scheme # 16, Shahra-e-Pakistan,
Karachi, Sindh
Tel: 021-36804433-34, 36805559
Tariq Road Branch
Shop # 1, Ground Floor, Zuljilal Center Plot # 1
72-F/2, Block 2, PECHS, Karachi, Sindh
Tel: 021-34322761-62, 34398489, 34314222
Malir Branch
Plot # 2-A/423, Drakhshan Society, Malir Halt
Karachi, Sindh
Tel: 021-34115090-91, 34116236
Boulton Market Branch
Plot # SR-1/6, New Cloth Market Building, Serai Quarters
Boulton Market, M.A. Jinnah Road, Karachi, Sindh
Tel: 021-32411553, 32426942-43, 32414612

PIB Colony Branch
H. No. 156, PIB Colony, Karachi, Sindh
Tel: 021-34860637, 34860633, 34860635, 34860631

Saba Avenue Branch
Saba Avenue, Plot # 8-C, Badar Commercial
Street # 6, Phase-V Ext., DHA, Karachi, Sindh
Tel: 021-35341673, 35341675, 35342003

DHA Phase-II Branch
106/C, Phase-II, National Highway
D.H.A., Karachi, Sindh
Tel: 021-35314081, 35314161-63
35304083

Bilawal Chowk Branch
Sands Apartment, Plot No. 7/4
Shop No. 8, Clifton, Block-2, KDA Scheme-5
Khayaban-e-Sadi Road, Kehkashan, Karachi, Sindh
Tel: 021-35140412, 35375014, 35376891
35375011-12

Shaheed-e-Milat Road Branch
Bismillah Blessings, Plot #7-A/228
SS # 35-P/1,Block-3 DMCHS
Main Shaheed-e-Millat Road, Karachi
Tel: 021-34943777, 34943888

DHA Phase-IV Branch
Plot # 99-E, Survey # 26, 9th Commercial Street
Phase-IV, DHA, Karachi, Sindh
Tel: 021-3885718, 35890325

Liaquatabad Branch
Shop Nos. 63 to 66, 'B' Road Liaquatabad No. 5
Near Post Office Roundabout, Karachi, Sindh
Tel: 021-34860625, 34860630, 34860621, 34860624

Saddar Branch
State Life Building # 5
Zaibunnisa Street, Saddar, Karachi, Sindh
Tel: 021-35212102, 35219710, 35212104

West Wharf Road Branch
Puri House, 4/22,
West Wharf Road, Karachi.
Tel: 021-32204639, 32205488

Port Qasim Branch
CP-10/2-B/11-A, Port Operation Area,
Port Qasim Authority, Karachi.
Tel: 021-35277184

M.A Jinnah Road Branch
70 N.I. Lines, Godrej Kandawala Building
M.A. Jinnah Road, Karachi, Sindh
Tel: 021-32294730-31, 32239867

EOBI House Branch
EOBI House, (Awami Markaz)
Plot No. ST-1-A/1, KDA Com Complex Scheme 1
Shop No. G-01/B, Shahrah-e-Faisal
Karachi, Sindh
Tel: 021-34536731-32

Nishtar Road Branch
Shop # 7, 8 & G/19, Ground Floor,
Ana Crown Palace, Nishter Road Garden West,
Karachi, Sindh.
Tel: 021-32239419, 32295081, 32231338-39

North Napier Road Branch
Marium Manzil, Plot # 161, Survey Sheet # MR-1
Market Quarters Napier Road, Karachi, Sindh
Tel: 021-32430488-89, 32440583, 32473320

Shershah Branch
Plot # M-II-E-606, Shershah, Karachi, Sindh
Tel: 021-32587581, 32587579, 32587583

Khalid Bin Waleed Road Branch
168-D, Block III, Rabi Square
Khalid Bin Waleed Road PECHS
Karachi, Sindh
Tel: 021-34323139, 34398481-82
34323136, 34323143
Khayaban-e-Shahbaz Branch
Plot # 18-C, Phase-VI, Shahbaz Lane-II
Survey No. 26, DHA, Karachi, Sindh
Tel: 021-35842467, 35348300, 35348771-72

Stock Exchange Branch
Room Nos. 109 to 112, 2nd Floor
Karachi Stock Exchange Building
Stock Exchange Road, Karachi, Sindh
Tel: 021-32417944, 32418675
Timber Market Branch
Ground Floor, Plot # 1/2, 7 Lea Quarters
Timber Market, Siddiq Wahab Road, Karachi, Sindh
Tel: 021-32751119, 32752198, 32752192

Nagan Chowrangi Branch
Plot # SC 20, Sector 11-H
North Karachi Township, Karachi, Sindh
Tel: 021-36900591, 36984856, 36987948, 36900654
Nazimabad No. 1 Branch
Property No.1, Row No. 11,
Sub Block E Block No. 1,
Nazimabad, Karachi, Sindh
Tel: 021-36610970-71, 36610992-93

Garden East Branch
Shop # 2, 3 & 4, Ground Floor, Garden Luxury
Apartments, Garden East, Karachi, Sindh
Tel: 021-332258007, 32238473, 32227267

Rashid Minhas Road Branch
Plot No. FL-20, Project No. 2, Pakistan Railway
Employees Co-operative Housing Society Limited
Gulshan-e-Jamal, Rashid Minhas Road, Karachi, Sindh
Tel: 021-34688631, 34688634, 34688619-20

Kulsoom Court Branch
Kulsoom Court, Shop # 2,3,5A & 6, Plot No. BC-3
KDA Sceme # 5, Block 9, Clifton Karachi, Sindh
TeL: 021-35837011-12, 35837015, 35837017

Jamshed Quarters Branch
Ground Floor, Show Room # 2, Ashfaq Plaza
Plot # 714/5, Jamshed Quarters, New M.A.Jinnah Road
Karachi, Sindh
Tel: 021-34914840, 34126552

North Nazimbad Branch
Plot # SD-12, Block- A
North Nazimabad, Karachi, Sindh
Tel: 021-36673568, 36635618, 36673597

Zamzama, Branch
18-C, 5th Zamzama Lane,
DHA Phase-V, Karachi, Sindh
Tel: 021-35822294, 35295209-10, 35295015

Stadium Road Branch
Shop # 2 & 3, Ground Floor, Plot # SC-45, Chandni
Chowk, KDA Sch # 7, Stadium Road, Karachi, Sindh
Tel: 021-34932266, 34932338, 34946680, 34941751

Landhi Branch
Plot # 48/1-48/2, Area 4-D,
Landhi # 06 Landhi, Karachi, Sindh.
Tel: 021-35040601-04

Hyderi Branch
D-14, Block-H, North Nazimabad, Hyderi
Karachi, Sindh
Tel: 021-36724412, 36643390, 36724410, 36643395,
36643411

M.T. Khan Road Branch
G-5(a), Ground Floor, Al-Fareed Center
Plot # CL-10/10/1, (Old Survey # F-9/PO 6), Civil Lines
Quarters, M.T. Khan Road Near PIDC House, Karachi, Sindh
Tel: 021-35693637-38, 35693326, 35693640

Bahria Town Icon Branch
Plot # 5, Block-4, Shahrah-e-Fridousi,
Clifton, Karachi, Sindh
Tel: 021-35277173

Business Arcade Branch
Plot # 27-A, Business Arcade, Block-6, P.E.C.H.S.
SEF, Karachi, Sindh
Tel: 021-34524667-68, 34326570-72

Pakistan Chowk Branch
Plot Survey # 98, Sheet # S.R 9 (Old Survey # B-21/30),
Serai Quarters, Pakistan Chowk, Karachi, Sindh
Tel: 021-32212610, 32212356, 32216368-69

Kasur Branch
B-III, 9R-53-A, Railway Road,
Kasur, Punjab
Tel: 049-2721771, 2770217-18

University Road Branch
SB-4, Block 13-B, University Road, Karachi, Sindh
Tel: 021-34989828, 34980430, 34980433

KASUR

Annual Report 2015

211

Branch Network

KHANEWAL
Khanewal Branch
Plot No. 80, Block No.5/1059/1781/1731
Khanewal, Punjab
Tel: 065-2559075-76, 2559081, 2559060
KHARIAN
Kharian Branch
Bilal Plaza, G.T.Road, Kharian, Punjab
Tel: 053-7532215, 7531864, 7534853
KOHAT
Kohat Branch
Shop # 2 & 3, Behram Plaza, Hangu Road, Kohat,
Khyber Pakhtoon Khwa
Tel: 0922-510272, 520010-12
LAHORE
Bund Road Branch
Plot # 8 B-5-595, Chohan Park
Bank Stop, Bund Road, Lahore, Punjab
Tel: 042-37147239, 37147231-38
DHA Z Block Branch
Z-38, Phase III, D.H.A Lahore Cantt., Lahore, Punjab
Tel: 042-35692819, 35692812-13
35692801-02, 35692815
Ichra Branch
Shop # 158, Mohalla Rasool Pura, Ichra
Main Ferozepura Road, Lahore, Punjab
Tel: 042-37597093, 37597290, 37588177
Johar Town R-Block Branch
70 R Main Boulevard,
Johar Town Lahore, Punjab
Tel: 042-35291605, Ext.107, 35291600-01
35291603-04
Gulberg Hali Road Branch
70, Block E/1, Gulberg-III, Lahore, Punjab
Tel: 042-35752531, 35784929, 35756944
35757218-19
Bilal Gunj Branch
SWII-8-S-14/A Old Sanda Road
Mouza Shesh Mahal
Tehisl and District Lahore, Punjab
Tel: 042-37880097, 37220098, 37220006-07
Azam Cloth Market Branch
F/1085, F/1085-A/1 and F-1083, F-1113 and F-1114
Chowk Old Kotwali, Kocha Haji, Sheikh Elahi Buksh,
inside Delhi Gate, Lahore, Punjab
Tel: 042-37674722, 37640832, 7658134
Urdu Bazar Branch
SIII-13-S-20 & S-III-2-S-26/RH Majahid Street
Behind Urdu Bazaar, Paisa Akhbar
Lahore, Punjab
Tel: 042-37361222-23, 37361226-27
Model Town C-Block Branch
Shop No10 and 11, Commercial Market, C-Block
Model Town, Lahore, Punjab
Tel: 042-35915403, 35915406, 35915408
35915401, 35915410
Punjab Cooperative Society Branch
Plot No. 68-F, Commercial Area, Punjab Cooperative
Housing Society, Defense Road, Lahore, Punjab
Tel: 042-35923817, 35923810, 35923801-03
NIB House Branch
14-A (Ground Floor), Shahrah-e-Aiwan-e-Tijarat
Old Race Course Road, Lahore, Punjab
Tel: 042-39203194, 36282446, 36375746,
36375724, 36382590-91
Ravi Link Road Branch
Mubarik Plaza, Plot No. 3, Ravi Link Road
Badami Bagh, Lahore, Punjab
Tel: 042-37706086, 37723238-39, 37706366

212

Annual Report 2015

Thokar Niaz Beg Branch
S.S. Centre, Kibriya Town, Main Raiwind Road
Lahore, Punjab
Tel: 042-35963291-92, 35963294

DHA Phase-II Branch
Commercial Plot # 12, Block CCA
D.H.A. Phase II, Lahore, Punjab
Tel: 042-35749481, 35895776, 35707033

Shah Alam Market Branch
1-A, Shah Alam Market Road, Lahore, Punjab
Tel: 042-37631971-73, 37672350, 37672210

Ghazi Road Branch
Plot # 2/1, Block–B, Guldasht Scheme Lahore
Cantonment, Ghazi Road, Lahore, Punjab
Tel: 042-36639775, 36639771-72

Bahria Town Branch
65-A, Sector-C, Bahria Town, Lahore.
Tel: 042-37861591-92
Gulberg Main Boulevard Branch
83-E-I, Main Boulovard, Gulberg III Lahore, Punjab
Tel: 042-35763570-71, 35756850-54
Model Town Link Road Branch
Plot # 34-B, Phase-III, Govt Employees Cooperative
Housing Society
Model Town Link Road, Lahore, Punjab
Tel: 042-35888301-04, 35942206
6-Bank Square Branch
6-Bank Square, Shahrah Quaid Azam Lahore, Punjab
Tel: 042-37246257, 327233808, 327353624
39212731-33
Circular Road Branch
Babr Center, 51-Circular Road
Outside Akabri Gate, Lahore, Punjab
Tel: 042-37672885, 37379250, 37672882-83
37379264-65

Johar Town E-Block Branch
Plot # 1, Block E1, Johar Town
Lahore, Punjab
Tel: 042-35220636-37, 35203603
Wahdat Road Branch
19/A, Wahdat Road, Lahore, Punjab
Tel: 042-37561856, 37502836-37
Multan Road Branch
9-A, Block Industrial,
Allama Iqbal Town Scheme
Multan Road, Lahore, Punjab
Tel: 042-37803470, 37803449
37806069-70
Davis Road Branch
Aftab Centre, 30 Davis Road
Lahore, Punjab
Tel: 042-36286965, 39204344
36287027, 36287029
LARKANA

Badami Bagh Branch
93-Badami Bagh, Lahore, Punjab
Tel: 0423-7722829-30, 7705235, 3773209

Larkana Branch
Plot City Survey # A-700
Bank Square Bunder Road, Larkana, Sindh
Tel: 074-4059041, 4055781-83

Allama Iqbal Town Branch
24, Gulshan Block, Allama Iqbal Town Lahore, Punjab
Tel: 042-37812321, 37812325, 37811034, 37812316

MANDI BAHAUDDIN

Packages Branch
Packages Limited, Shahrah-e-Roomi,
P.O Amer Sidhu, Lahore, Punjab
Tel: 042-35920550, 35920577, 35920545
35920571-74
Gulshan-e-Ravi Branch
159-A, Main Boulevard,
Gulshan-e-Ravi, Lahore.
Tel: 042-37401890, 37401870
Cavalry Ground Branch
Commercial Plot # 29, Baza Area, Officers Housing
Scheme, Cavalry Ground, Lahore, Punjab
Tel: 042-36687401-02, 36687353
Timber Market Branch
Timber Market, Plot # NW.III R-84
Ravi Road, Lahore, Punjab
Tel: 042-37709235, 37720696
37709231-33
New Garden Town Branch
10-B, Aibak Block
New Garde Town, Lahore, Punjab
Tel: 042-35843885, 35941562, 35843883, 35843882
Mughalpura Branch
13/B, Shalimar Link Road, Mughalpura
Lahore, Punjab
Tel: 042-36844011-14, 36846812

Mandi Bahauddin Branch
Plot # 7/211, Ward # 7
Mandi Bahauddin, Punjab
Tel: 0546-509551-54, 500454
MARDAN
Mardan Branch
CB/436, 20-21, The Mall, Mardan Cantt.,
Mardan, Khyber Pakhtoon Khwa
Tel: 0937-863684, 870172, 873682, 873684
MINGORA
Mingora Branch
Haji Muhammad Ismail Manzil
Bank Sqaure, Main Bazar, Mingora Swat
Khyber Pakhtoon Khwa
Tel: 0946-724991, 724994, 710440, 712006
MIRPUR A.K.
Mirpur A.K. Branch
Bank Square, Allama Iqbal Road
Mirpur A.K., Azad Jammu & Kashmir
Tel: 05827-442118, 442840, 447683, 442840
MIRPURKHAS
Mirpurkhas Branch
Ground Floor, bearing City Survey No. 709, 710,
Ward “A”, Situated at Mohalla Khari Quarters,
Mirpurkhas.
Tel: 0233-874148, 0233-875344
MULTAN

WAPDA Town Branch
Plot No. 1-F-2, Wapda Town Employees Co-operative
Housing Society, Lahore.
Tel: 042-35189621, 35188449
Shahdara Branch
Shahdara More, Lahore.
Tel: 042-37940888, 37919163

Abdali Road Branch
Plot # 66/9, Abdali Road, Multan, Punjab
Tel: 061-4580277, 4781535, 4781225, 4517126,
4783641, 4782241, 4782196
Vihari Road Branch
Sherry Commercial Area
Opp. Grain Market, Vehari Road Multan, Punjab
Tel: 061-4230700-03

5851527. Okara. . M.Peshawar Cantt. Situated at Memon Mohalla Barrage Road Sukkur. Tel: 071-5618227. 610146 Hamilton Road Branch Plot 725-728. The Mall. Town House Circle Rahimyar Khan. Shuba Chowk. 654927. Nawab Shah. Sindh Tel: 0235-844901-02 SHEIKHUPURA Main Branch Sheikhupura Shop No. Peshawar. Fakher-e-Alam Road. Mouza Mohala. Survey No. Cantonment Plaza. Punjab Tel: 0544-654929. Punjab Tel: 051-4426975-76.5 Ground & First Floor Haroon Plaza (Outside Katchery Gate) Chowk Yadgar Peshawar. Punjab Tel: 0442-550901-03. Khyber Bazar Peshawar City. Muzaffarabad. Punjab Tel: 051-4902231-34 WAZIRABAD Wazirabad Branch Property bearing Khasra No. BIII-12S. 574081 TANDO ALLAHYAR Tando Allahyar Branch Plot # 1610/2-B. Civic Centre. 542882.4. Punjab Tel: 048-3726609. Hamilton Road Mohalla Workshop. 58252306 SAHIWAL University Road Branch Ruby Villa.T. Sublime Chowk Kashmir Road. 550903. Punjab Tel: 051-5775950. Khyber Pakhtoon Khwa Tel: 091-5287478. 654932. Muhammadi Chowk Tando Adam. Main G. 2590257 Chowk Yadgar Branch Shop No. 5778958 Mall Road Branch 31/3-31/A. Balochistan Tel: 081-2836204-05 Masjid Road Branch Plot # 2-30/4. 2590761-62 2588004 Kunri Branch Union Council Chajro. 5885651 RAWALPINDI Murree Road Saddar Branch Bldg # 11/10. 1. No. Commercial Area. 5701103-05 5701316.2.S. 3241491-92 SUKKUR Sukkur Barrage Road Branch C. Firdous Shopping Centre Kutchry Road. 5276232. Khyber Pakhtoon Khwa Tel: 091-2590157. 5120415 5120474. 3891040-41 Wah Cantt Branch Shop # 1/37.1. AJK Tel: 05822-920455. 5853164 SARAI ALAMGIR Mannan Chowk Branch 2-11/6-303. Service Road. Rawalpindi. Punjab Tel: 051-5778800-02. G. Batti Chowk. Block 5 Sargodha. 26-1. Nabisar Road Taluka Kunri. Munawar Colony Main Adyala Road Rawalpindi. Nawabshah Road Sanghar..Branch Network MUZAFFARABAD Domel Syeden Branch Plot No. Punjab Tel: 040-9200477-80 Shoba Chowk Branch Plot # 401/14 & 401/14A. Tando Allahyar. 551101-02 Fakhr-e-Alam Road Branch 17-20.3. 5778953. Skindar Plaza. 5778950-51. Sialkot Road Wazirabad. The Mall Rawalpindi. 920505 NAWABSHAH Nawabshah Branch Shop # S-1 to S-4. 5887182.A. Punjab Tel: 051-5701200. Peshawar. Tel: 055-6607171. WAH Okara Branch Khewat # 50-18. 442672-73 College Road Branch G-263. Near Health Way Hospital Building. 055-6607168 SANGHAR Sanghar Branch Plot City Survey No.. Rawalpindi. 5562944-45. College Road. Punjab Tel: 051-5400392 Hayatabad Branch B-1. 542898 QUETTA TANDO ADAM Sahiwal Branch 267/B-1. Khyber Pakhtoon Khwa Tel: 091-2580718-19. Punjab Tel: 051-5572401. 5778808 Tando Adam Branch Plot City Survey # 535. 5948549 PESHAWAR Bahria Town Rawalpindi Branch Spring North Plot # 78. Ground Floor. Sindh Tel: 0238-558013-14. 5273633 5261256. Mannan Chowk. Punjab Tel: 052-3241292. Raja Bazar Rawalpindi. 5778804. Khyber Pakhtoon Khwa Tel: 091-5851453. 3729623. Nowshera. Al-Hamd Plaza. 3729623 SHAHDADPUR Shahdadpur Branch Plot City Survey # 801 to 804 & 813 Station Road. District Umerkot.T. Jinnah Road Quetta.O. Muree Road Satellite Town. 3557367 Kashmir Road Branch 155/A. Peshawar Khyber Pakhtoon Khwa Tel: 091-5824366. Punjab Tel: 052-3557365. Road Nowshera Cantt. Gujrat. Sialkot. Lahore Road Sheikhupura. (Municipal No. Sindh Tel: 0235-543702. 20-B. Rawalpindi Punjab Tel: 051-5775217. Ghari Phan Chowk Domel Syedan. P. 5775227 OKARA Adyala Road Branch Khasra # 1365/572. Phase 5. 2-20/425) Khasra No. Quetta Balochistan Tel: 081-2843640. 5573424. Kunri.741. D-537/1. City Saddar Road Raja Bazaar. Road Sarai Alamgir. Wah Cantt. 5701318 Satellite Town Branch North Star Plaza. 360685 NOWSHERA Nowshera Branch Shah Building. Adjacent Main Bus Stop Hyderabad. Opposite Jabbar Flats University Road Peshawar. 349/10 Main Murree Road. 5120597 City Saddar Branch Shop # 317 A. Punjab Tel: 056-3788165. Punjab Tel: 051-5562952. 5276914 TALUKA KUNRI Sarai Alamgir Branch Fazal Plaza. Sindh Tel: 0244-372648-49. Phase-VII. 6654931 SARGODHA Mian Khan Road Branch 110 Mian Khan Road. Sindh Tel: 022-2763715-16. Mirpurkhas Road. Punjab Tel: 068-5885642-43. Saddar Rawalpindi. Sindh Tel: 0235-574227. Jinnah Road (High Street) Sahiwal. Chak # 1-A/4-C M. Aslam Market. Distt: Sanghar. Khyber Pakhtoon Khwa Tel: 0923-614881-82. Masjid Road.A. 2590258. 5825278-79. Jinnah Road. 5852019. Hayatabad. 263. 2843651 RAHIMYAR KHAN Model Town Branch 14 Model Town House. Shahdadpur. Rawalpindi. 921136-38. 5618224 Annual Report 2015 213 . 3812456 SIALKOT Shahabpura Branch Plot # B-III-8-S-206. 951. Shahabpura Sialkot.

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: Address : NOTE: A member entitled to attend a General Meeting is entitled to appoint a proxy to attend and vote instead of him / her. the Board of Directors’ resolution or power of attorney with specimen signature shall be submitted to the Company (unless it has been provided earlier) along with proxy form. ii) Attested copies of CNIC or the Passport of the shareholder and the proxy shall be provided with the proxy form.: Address : Signature of Member(s) on Rs. Islamabad and at any adjournment thereof.W/o _______________________________ of _____________________________________________________________________________ (full address) being a member of NIB Bank Limited and holder of shares as per Registered Folio No. In case of a corporate entity. ______________________ and Account No. For CDC Account Holders / Corporate Entities: In addition to the above. 28 March 2016 at 3:30 pm at Islamabad Serena Hotel.T. _____________________________ Name : CNIC No.D.Revenue Stamp _____________________________ Name: CNIC No. No person shall act as proxy (except for Corporate Entities) unless he / she is entitled to be present and vote in his / her own right. speak and vote for me/us and on my/our behalf at the 13th Annual General Meeting of NIB Bank Limited scheduled to be held on Monday. ____________ do hereby appoint Mr/Mrs/Ms ___________________________ of ____________________________________________________________________________ (full address) or failing him/her ___________________________________________________ of ____________________________________________________________________________ (full address) as my/our proxy to attend. No. the following requirements have to be met: i) The Proxy form shall be witnessed by two persons whose names. Karachi-Pakistan. Proxies. addresses and CNIC numbers shall be stated on the form. Annual Report 2015 . not later than 48 hours before the meeting. in order to be valid. Khan Road. Khayaban-e-Suhrawardy. ______________ and / or CDC Participant I. M. As witness my / our hand this _____________ day of _______________ 2016. Witnesses : 1. 2. 5/.NIB Bank Limited Proxy Form I/We ________________________________S/o. must be completed in all respect and be received at the Head Office of the Bank situated at PNSC Building. iii) The proxy shall produce his/her original CNIC or Passport at the time of the meeting.D/o.

NIB Bank Limited Annual Report 2015 .