Islami Bank Bangladesh Limited and its Subsidiaries Condensed Consolidated Balance Sheet As at 30 September 2016 (Amount in Taka) ne fa Particulars |30 September 2016 || 31 December 2015, Property and assets |Cash In hand 60,105,398,708 55,256,081,820 |Cash in hand (including foreign currency) 9,615,372,484 8,625,867 409 |Balance with Bangladesh Bank & its agent bank(s) (including §0,490,026,224 46,630,214,411 [foreign currency) [Balance with other banks & financial institutions: 21,947,101,009 25,644,591,295 JIn Bangladesh 19,830,214,420 23,974,968,279 oxide Bangladesh zr6aoeseo || ecwars.016 [Placement with banks & other financial Institutions 8,811,404,893 3,000,000,000 lInvestments In shares & securities 94,343,291,407 98,387,090,217 |Government 89,436,637,770 95,482,757,770. ‘Others 4,906,653,637_ 2,914,332,447_ |Investments 568,002,866,303 525,104,502,716 |General investments etc. §33,671,905,222 488,699,301 422. |Bills purchased & discounted 34,330,961,081 38,405,201,204 Fixed assets including premises 15,475,264,463, 15,838,557,191 |Other assets §,426,266,355, 2,527,292,915 Non banking assets : : Total property and assets: 774,111,583,138_ 725,768.116,154 \Liabilities and capital lisbtves Placement rom banks & other financial Instone 281240000 17, 788300,199 IDeposits & other accounts. 667,432,920,483 _614,877,266,437. |Mudaraba savings deposits (233,574, 186,761 211,327,625,463. |Mudaraba term deposits 197,862,482,414 179,234,913,887 [oer mutarabe depots {eacss.sss.ote || ieaoer 00.257 |Al- wadeeah current and other deposit accounts 64,368,392,874 (57,126,253,285, Bills payable 3,594,312,418 §,091,285,545, |Mudaraba perpetual bond 3,000,000,000 3,000,000,000. \Other liabilities 41,239,563,726 41,256,004,562 Deferred tax liabilities 310,729,683 310,066,332 ota abies arse |Capital/shareholders' equity A9,876,530,246 48,558,448,684_ |Paid - up capital 16,099,906,680 16,099,906,680 Story reserve {080 08000 || te.c88 800 600 |Other reserves: 11,813,698,312 11,779,818,313 Retained earings Bise2080.302 || a7a7e4 008 ereonteing interest e022 cone Tota abies & sharehoders' equity rer oa. ta8_ rasan |Islami Bank Bangladesh Limited and its Subsidiaries Condensed Consolidated Balance Sheet As at 30 September 2016 (Amount in Taka) sat ‘As at [Particulars 80 September 2016|| 31 December 2015 |Off-balance Sheet Items |Contingent liabilities [Acceptances & endorsements = = Letters of guarantee 11,887,335,529 10,629,688,357 [Irevocable letters of credit (including back to back bills) 111,411,841,004 |] 115,229,781,408 ils for collection 6,844,555,817 7,496 874,228 JOther contingent llabilities 23,581,701 23,501,701 Total 130,167,314,051_ __ 183,379,025,604 lother commitments [Documentary cretits, short term and trade related transactions : E |Forward assets purchased and forward deposits placed - = \Undrawn note issuance, revolving and underwriting facilities, i: : |Undrawn formal standby faciities, credit ines and other |commitments : : {Total [Total off-balance sheet items including contingent Ilabilitie |Consolidated Net Asset Value (NAV) per share 130,167,314,054 30.79 133,370,025,604 eae 30.18 ‘The annexed notes form an integral part of these condensed interim financial report. Mohammed “Shéhid Utiah FCA Chief Financial Officer dAbdul ‘Mannan Prof. Syed Ahsanul Alam janaging Director & CEO Director ‘Abu Reza Mid, YoahtaIslami Bank Bangladesh Limited and Its Subsidiaries Condensed Consolidated Profit & Loss Account For the 3rd Quarter ended 30 Septomber 2016 (Amount tn Take) Oi vanaay to | OT Tena S| Oi dalyto | Of vuly to Particulars 20 Beptomber | 20 September | 30 September | 30 September 2056 2018 2016 2018 [Operating income vestment income GOGGTOBEOAT | $5,750/015 692 | 15,106 701, 190 | TAzT6 NAT [Profit paid on mudaralba deposits: (22,306,166,287)|_(27,517,484.938)|_(7,565,019,240)| _(7.382,871,172)| [Net Investment income 7,360,929,360 — 14 212528,7s4 — 5,540,081 "4825,753,700 Income from investments In shores & secures | T81,764205 | 776850140) _ STS0BT,700] 118,080,782 Icommission, exchange & brokerage mcome | 4187.653.017| 4.412240.516 1,202,048,200 | 1.290.500,508 loner operating Income ‘ireesqo02 | _1.266,536.174| "47,008,265 | _‘32,204603 [Total operating income $79,031 7185, "7,363,780,229_ _ 6,561,707,751 | lonerating expenses salary & stowances TOGZATGUS | — 8705204660] 3 TBO HO 25 | 2346, 100, 725 Ren aves Insurances, electicty etc, ‘araai72i8| 769,418174| 31320,300| 2axe7ast7 eae expenses arecsar2| t,7aze00| azaazsaa | s.807.492 |Postage, stamps and telecommuntcation etc. 85,435,172 92,936,679 23,791,666 28,044,318 stationery, printing and advertisement et. 103,200,728 | tesar7ais| 84264053] s8.270231 lief executive's salary & fees ‘asssia0s| — syed000] — .200000} 2.480.000 tector fees & expenses see4se0| ogago00| 52.900] 2,001.91 snarrah supervisory committees fes & raaairis| — §,105:965 “s2e20] 77.173, lexpenses lator’ fees 11928,003 1980.28 758,001 20.751 [charges on Investment losses : 7 [Depreciation and repair to bank's assets 808,156,841 892,327,714 275,130,813 300,198,834. aket expenses 315.84,705| st9.aaae31 | 105328235 | 100,400,511, [otter expenses g0ge24.730 | 1,146,ess.403| _72.ean.ss6 | _ 285,13.363 |Total operating expenses 44,887, 799,748_ 1137,654,804 —4,437,855,820 3,380,986 Prot/ (loss) before provision 44,504,251,914 —1,590,500,702— 2.925,924,400 3,198 317,765, Provision for investments & of. balance sheet [2.836 640,000 ] — $,192,980,000 [1 T80,200,000 | 1,657,490,000 terns rovsion for diminution n value of investments | (66407,940)]144,748,52] (110,827,860)| (15,101,818) ln shares [other provisions - 8.946.500, - 06,309) [Total provision ase RAST 3,311,572, 152 — LOTOATE a —1.641851.703 [rota proft/ loss) before taxes 8,790,000,663 6,218,028,550__1,855452,200 1,406,485,072, Provision for taxation for the period 4,596,916,964 _4,204,200,t23._4,117,124,080 964,001,754 curren tax “594,705,481 ] 4 29%,200,123 | —1,117,681.525 | 068,01,754 Deferred tax 17483, : 221725 : Net profit/ (loss) after tax 4:204;182,000_ 3927, 7o8AaT Ta, aaaaeaze |Net profit after tax attributable to: 4,204,182,899___3,927,728,427_ 738,328,219 532,484,218 Equity holders of BBL :208,177.096] 9827.726,763 | 738,324,080 | 532.482.870, |Non-controlling Interest 285 1,664. 4,150 1,330 Retained earings from previous year/period —4S78,784,008 _2386670,563 ASTATSA0S4 3,506,020.448, lad: Net profit after tax (attributable to equity -4,204,177.698 982¥.720,76 738,824,089 ——532,482.670, holders of TBBL) Proftt available for appropriation TTeaNST i Sarai savas Appropriation: 8,762:931,098 —0,314,397,328 _ 6,317,070,133 — 3,000,414,224, stator reserve a > ~ - |General reserve : : : : bvidend 3.219.901.3968 | 2.414,986,002 : 7 Retained earings 5,502,950,002 | ge00n1,324| 9.s17070,133| a.s00.4tt.324 lconsotidated Earnings Per share (EPS) 281 2M 048 033 ‘The annexed notes form an integral part of these condensed interim nancial report. Managing Director & CEO Prof Syed Ansanul Alam DirectorIslami Bank Bangladesh Limited and its Subsidiaries Condensed Consolidated Cash Flow Statement For the 3rd Quarter ended 30 September 2016 (Amount in Taka) 04 Januaryto 30 || 01 January to 30 Particulars Soptember 2016 || _Soptember 2046 [Cash flows from operating activities investment incomo 36,002,455,007 || _36,806,410,608 |Proft pald on mudaraba deposits (20.635,813,26)||_(21,137,036,087) income’ dividend receipt from investments in shares & securtos 1,185,868,161 2,027,978,770 [Fees & commission receipt in cash 4,187,653,017 4$12,240519 |Recovery from writen off investments, 24,181,096 14,516,021 |Paymants to employees (9,480,789,158)|| _(6,637,887,846)] |Cash payments to suppliers (182,971,203)| (199,502,631)| Income tax pald (6,892,780,620)||_(7'392,656.718)) [Receipts from other operating activities 1,160,742,206 1,286,732,214 |Payments for other operating activities (2,447,914,369)||_(2.038.505,261)) () Operating profit before changes in operating assots ‘4,780,727,886 6,941,328,462 |Changes in operating assets and liabilities Increese/(decrease) of statutory deposits | increase}icecrease of net trading securities (194,507,752) = increase) decrease of placement to other banks (264,619,521)||_(4,000,000,000) |increaseyidecrease of investments to customers (42,808,363,587)||_ (29,041,602,612) {increaseyidecrease of other assets (2,892,213,020)]}(2.284304,660)} Increasei{decreeso) of placement from other banks (6214,490,139)|| 4.037.611.9652 increasel{docrease) of deposits trom other banks 309,176,986 199,994,127 Increase/{decrease) of deposits received from customers 81,747,361,516 ||. 48,923,801,519 Increase/{decrease) of othor itabites account of customers - Increase/{decrease) of trading labllties, . - Increase/(decrease) of othor liabilities (6,084,026 720) 517,950,775, |) Cash flows from operating assets and liabilities (4402,771,266) __16,352,701,092 Not cash flows from operating activities (A}=(til) 377,956,629" 23,286,029,554 ICash flows from investing activitios, Proceeds from sale of securities 5 "936,006,407 [Payment for purchase of securties/BGIIB 4,282,216,562 || _(13,988,908,537)] [Payment for purchase of securtias/membership - (1,124,850,527) |Purchase/sale of property plants & equipments (288,428,253) (680,734,100)} lPurchese/sale of subsidiaries = = INot Cash flows from Investing activities (B) 3,905,857,308_ __(14,730,456,763) |Cash flows from financing activities JRecelpts from issue of debt instruments : : [Payment for redemption of debt instruments : : !Receipts from issuing ordinary share/ rights share - - Dividend paid in Cash (3,219,081,336)||_2,519,986,002)| INet cash flows from financing activities (C) (3,219,981,336) (2,519,986,002)| INot increasei(decrease) In cash (A*E+C) 4,454,826,602 16,034,586,789 |Addi{less) effects of exchange rate changes on cash & cash equlvalent - |Add: cash & cash equivalents at beginning of the year 80,900,673,115 __69,834,578,037 |Cash & cash equivalents at the end of the period 82,052,409,717 ___75,860,164,826 |consolidated Not Operating Cash Flow Per Share (NOCFPS) 0.23 14.47 Mohammed 964M Ullah FCA shewanna to i ‘Financial Officer Company Secratary_ & ces _ Moe— Prof. Syed Ahsanul Alam Managing Director & CEO Diroctor ChairmanIslami Bank Bangladesh Limited Condensed Balance Sheet As at 30 September 2016 {Amount in Taka) ‘As at ‘Asat peo 30September 2016 || 34 December 2018 Property and assets Jcash tn hand 60,105,371,245 ___58,280,075,509, [Cash in hand (including foretgn currency) 9,675,046,027 625,867,188 Belance with Bangladesh Bank & its agont bank(s)Ineluding 50,490,026,224 || 46,690.214,411 {foreign currency) Balance with other banks & financial institutions 21,655421,939 __19,766,822,040 In Bangladesh 19,538,535,360 || 18,096,689,633 Outside Bangladesh 2,116,686,569 1,669,623,016 Placement with banks & other financial institutions 3,000,000,000 '3,000,000,000 lnvestmonts in shares & securities 95,108,372,777 __99,436,769,339 [Goverment 89,496,697,770 || 95:482,757,770 others 5,751,795,007 3,954,011,569 Investments 573,002,800,303 _§30,194,502,716 |General investments otc. ‘598671 805.222 || 499,780,907,A22 Bits purchased & discounted 34,390,961,081 36,405,201,204 |Fixed assets Including promises 15,473,453,042 ——15,896,479,006 JOther assets 5,026,498,257 2,330,975,328 INon - banking assets [Total property and assets 77, 163 725,821,124,007 [Liabilities and capital Liabilities Placement from banks & other financial institutions. 12,581,840,000—_17,768,330,139 Deposits & other accounts 667,733,405,844 _615,350,210,035 Mudaraba savings deposits 233;594,234,169 |[ 217,549,649,041 Mudaraba torm deposits ‘198,093,887,307 |} 179.484.913.887 Other mudaraba deposits 188,040,548,013 |} 162,098.214,256 JAl-wadeeah current and other deposit accounts 64,410,483,947 || 57,160,947,308 Bits payable 3,504.312.418 5,091,285,545 IMudaraba perpetual bond 3,000,000,000 3,000,000,000 lothor tabities 40,031,052,812 40,019,490,303 [Deferred tax llabiltios ‘310,729,683 310,729,682 [Total abilities 724-727, 866,530 |__677,385,709,150 | |Capitat/sharchotders' equity 49,222,093824 __4B,465415,538 Paid - up capital 716,009,906,680 |[ _ 16,099,906,680 [statutory reserve 16,099,906,680 ||. 16,090,906,680 lother reserves 11,813,698,312 |] 11,779,818,313, [Rotained earnings 5,208,524,152 4,495,783,865 [Total abilities & shareholders’ equity 773,440,924,103 725,821,124.097Islami Bank Bangladesh Limited Condensed Balance Sheet As at 30 September 2016 (Amount in Taka) Avet Asal Liked 30 Soptombor 2016 || 31 December 2015 lOf-balance Shoot iteme |Contingont liabilities JAcceptances & endorsements 5 = Letters of guarantoo 11,887;335,529 |] 10,629,688,357 Irrevocable lettre of credit (including back to back bills) 111,411,841,004 |} 118,229,761 408 its for collection 6,844,555 817 7,406,874,228 lOthor contingont labios 23,581,701 23,581,701 Total 730,167,314051 __193,370,025,604 lother commitments [Documentary crocits, shor torm and trade rolatod transactions 7 7 Forward assots purchased and forward deposits placed : : lUndrawn note Iesuanco, revolving and underwriting facitios 7 7 Undrawn formal standby facities, credit lines and other commitments : i Hrotal ore a ee] {Total oftzbalance sheet Items Including contingent Hlabilit 730,167,314 081 195, 370,925,604 Net Asset Value (NAV) per share 30.57 30.10 ‘Tho annexed notes form an intogral part of these condensed Interim financial report. Ono. Mohammed SHfafiid Ullah FCA ‘Abu Reza Md, Yoahia Chiof Financial Officer Company Sacretary, rof. Syed Ahsanul Alam Engr. ‘Anwar Director (ChalrmanIslami Bank Bangladesh Limited Condensed Profit & Loss Account For the 3rd Quarter ended 30 September 2016 veut Fae cave | eda camo 0 | SUDRaT cane arn] ram | sta | state oprangncoine Investment income '39,667,095,647 | 35,841,508,894 | 13,105,701,138 | 12,330,210,074 [Profit paid on mudaraba deposits (22,312,434,637)| (21,551,196,599)| _(7,566,762,951)| _(7,408,366,029)| Net investment Income 47,354,61,010 —14,200,402,206 —5,838,938,187 — 4,921,844,045 Meera nates tamcaten [—CSsceter] estan | esses Earrastn, catwgeawaaegercee’ | astern | Acctaseras| saarascors Gor ssecig incre tiivensor| Uooenaer| “Sesaraaee Fapeeariteaae Te ee eae Epenete ertroce |Salary & eliowances: 7,978,479,138 '§,693,625,657 | 3,176,048,070 | 2,347,407,149 Rec ren, acy omsier| “weoaoss| “serrse| sedaestes her preay srasr| ‘staezeso | eawsn| taanrase edge sures ae tecaricaton wees Somes | aaen| aura Se ree caret See) gee] Bigie|. oee ae secon cay tom casens| “arenoo| “sseom0| 2aeoate eer acces Petre byes Moe (eevee Erarancieemaecmmmerieekepmase| Sacre) avmee| “esas | sates |Auditors' fees. 1,860,000 4,811,250 735,000 603,750 eet ‘ : ; a [power oadtepart be net sorscosne| ssnreoios| zraonser| — amooeses scones Sibovms| Sewasst| ‘ese | foneeat ee oecee saoeee | vtaeea| conammer | Sesenest er opera oxpnmen Ares Haines aarbaee aac JProfit (loss) before pravision 11,333,680,335 _11,283,810,745 —2,800,949,045 _3,061,140,224 Pen eee saarcesnen | “Sssteecans | reeset] taresatars | eerie Kora nowt) | Provision for diminution in value of investments in - (482,000)| + (1,613,856)| rare —— | sees = | oss fasts aaapaioe asian Tareas Ta tn roms) etre tae tersaaoe eae tarot Semotaes rows tortadon orth pated «= —RASESTR TIE pana BROS EOE Ba] |Current tax 4,452,318,712 '4,220,524,298 | 1,090,085,604 939,456,080 Sat ‘ 2 : : Maret foe) ter as Te mae aT ae ee um yeaipoioa Raa osas Sure aeeDi —Sanurss8 —Taet sob Wt pen oe Soueras souserioer “anvasiine amore erento cpropaton Ae ne — eet an bey —aarzornead —Soesteatt Appropriation: 8,A28,505,488, 6,261,897,940 3,912,070,082 —_3,846,911,947_ eoeaocns ; : : : ere szieo0100| 2415 enue : : Pn eon See | Sotmett | aoraorsee| sessortsur ete ad 2s i oss sal "orn so fa a nog par of Ree coder here eat vtonanmes stds an FA anne cus Pastoral ome Company Secray atin ge. tsa Anwar ‘Managing Director & CEO Director ChalrmanIslami Bank Bangladesh Limited Condensed Cash Flow Statement For the 3rd Quarter ended 30 September 2016 (Amount in Taka) 01 January to 30 | [Of January to 30 peer Sopiomber 2016 | | Soptember 2018 [Cash flows from operating activities Investment income 36,882,455, 887 36 806,478,098 Profit paid on mudaraba deposts (20,638,613,267)| | (21,137,036,087] Income’ dividend recelpt from investments in shares & secures 786,827.185 11904,183,013 Fees & commission receipt in cash 4,141,017.739 4401, 888,729 Recovery from written off investments 24,181,036 14,515,621 Payments to employees (0.486,868,201)| | _(6,826,258,883)| [Cash payments to suppliers (182,674,740) (1991023,878)| income tax paid (6.821,617,392)| | _(7,997,017,160) [Receipts from other operating activites 1:140,689471 1.017,506.976 |Paymonts tor other operating activites (2,286,874,7e1)| |_(4,917,544,901) 1) Operating profit before changes In operating assots 4,598,122,973 8,727,700,163 [Changes in operating assets and Habilties increase decroaso) of statutory deposits : Es increase}/decrease of net trading securities e : increase}/decrease of placement to other banks 7 (4,000,000,040) increase)/decrease of investments to customers (2a,041,602,612) incroasodecrease of other assets (196,535,286) Incroasel{ decrease) of placement from other banks *4,037,611,952 Increesel{ecrease) of deposits from other banks 190,994,127 Increasel(¢eerease) of deposits received from customers 47 928,206,057 Increasel(¢ecreaso) of othor lablties account of customers : = Increese!( decrease) of trading abilities e a Increesel( decrease) of other labities (287,586,491) (908,505,354) |) Cash flows from operating assets and tallies 7,370,362,663, Tors, INet cash flows from operating activities (A)=(I}) 5,963,475,635 2,746,778,647 lcash flows from investing activities Proceeds from sale of securities 7 = payment for purchase of securties/BGIIB 4,282,276.562|| _(13,968,968.837) Payment for purchase of secuites/membership 7 z Purchase'sale of property, plants & equipments (207,375,925) (680,262,048)| Purchasotsalo of subsidiaries - ‘ Net Cash flows from investing activities (8) SOOO GST (14 540,231,487 [Cash flows from financing activities [Receipts from issue of dobt instruments = [Payment for redemption of debt instruments s Recetas trom issuing orcnary share! rights share i. . lbvidend paid in Cash (3.210,981,336)| |_-__2,414,986,002) INet cash flows from financing activities (C) (9,210, 981,336), (2414,986,002)] INot increase/(decroase) in cash (A¥B+C) 6,738,394,938 5,782,562,163 |Addiess): effects of exchange reto changes on cash & cash equivalent : * |Add: cash & cash equivalents at beginning ofthe year 75,022,398,248 66,418,709,671, lcash & cash equivalents at the end of the period 81,760,703,184 72,201,271 834 INot Operating Cash Flow Per Share (NOCFPS) 370 1443 Seen lite came Chief Financial Officer ‘Company Secretary Prof. Syed Ahsanul Alam Engr. Mustafa Anwar Managing Director & CEO Director ‘Chairman,raav—| arenran | warren _| RR "CaP TOERDST fearusvarn [lara [owwecrs [eoreecr | omerearor eae, | sconces | meses maenet | omojemisp | Aiemas swept ms | pe doen 9102 sequardes o¢ popu so4zen2) pac auf 30% Aymnbg ur soSuey 30 nrourapeig pasuspuo3 paynury] ysepersueg yueg rureysy ‘FOE Arann TOW su oun ese en) ap a ape re | ‘sro Aumvor 19 350 cue10 14 12 20 24 22 Islami Bank Bangladesh Limited and its Subsidiaries. Notes to the condensed consolldated interim financial report AAs at and for the Srd Quarter ended 30 September 2016 ‘The Bank and Its activities Istami Bank Bangladesh Limited (hereinafter referred to as “the Bank" or “IBBL") was established as a Public Umited Banking Company in Bangladesh in 1983 as the first Shari'ah based Scheduled Commercial Bank in the South East Asia. Naturally, its modus operandi is substantially different from those of other conventional ‘Commercial Banks, The Bank conducts its business on the Shat'ah principles of Mudaraba, Musharaka, Bal- Murabeha, Bai-Mueijal, Hire Purchase under Shirkatul Melk, Bai-Salam and Bai-as-Sarf etc, There is a Shari'ah Suporvisory Committee in the Bank which ensures that the activites of the Bank are being conducted on the precepts of Islam, ‘The shares of the Bank are listed with both Dhaka Stock Exchange (DSE) Limited and Chittagong Stock Exchange (CSE) Limited. The Bank carries out its business activities through its Head Office in Dhaka, 14 Zonal Offices, 304 branches including 57 Authorised Dealer (AD) branches and 3 (three) Off-shore Banking Units (OBUs) in Bangladesh. The Principal place of business is the Registered Office of the Bank situated at Istami Bank Tower, 40, Dikkusha Commercial Area, Dhaka-1000, Bangladesh, ‘This interim financial report as at and for the 3rd Quarter ended 30 September 2016 includes the condensed consolidated and the separate financial report of the Bank. The condensed consolidated interim financial report comprises the financial statoments of the Bank and its two subsidiaries - islami Bank Securities Limited (1BSL) and Islam! Bank Capital Management Limited (IBCML) - together referred to as “the Companies”. Nature of business/principal activities of the Bank ‘Al Kinds of commercial banking services including Islamic micro-finance under Rural Development Scheme (RDS) and Urban Poor Development Scheme (UPDS), mobile financial services under the “slam Bank mCash* tre provided by the Bank to the customers following the principles of Islamic Shariah, the provisions of the Bank Company Act, 1991 as amended, Bangladesh Bank's directives. and directives of other regulatory authorities. The Bank also provide services to its cllonts through currently S(three) offshore-banking units {OBUs) located at Head Office Complex Branch, Agrabad Branch and Uttara Branch, Basis of preparation Statoment of compilance ‘The operations of the Bank and Its subsidiaries ara in strict compliance with the rules of Islamic Shari'ah. This ‘condensed consolidated and separate interim financial report for the 3rd Quarter ended 30 September 2016 of the Bank has been prepared in accordance with “BAS: 34 Interim Financial Reporting” and as per Sangladesh Bank (BB) Department of Banking Inspection (DBI) Circular Letter No. 01 dated 24 February 2004, per Rule 13 of Securities & Exchange Rules 1987 and Financial Reporting Act 2015. Selected explanatory notes are Included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Bank since the last annual consolidated and separate financial statements as at and for the year ended 31 December 2015. This condensed consolidated and separate interim financial report does not include all the information required for full annual financial statements prepared in accordance with Bangladesh Financial Reporting Standards. Authorization of the financial statomonts for issue ‘The condensed consolidated and separate interim financial report of the Bank have beon authorized for issue by the Board of Directors on 20 Octobar 2016,23 24 25 30 34 32 40 50 Use of estimates and Judgments Preparing the Interim financial report requires Management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and labiliies, income and ‘expense, Actual resuits may differ from these estimates. In preparing this condensed consolidated and separate interim financial rapor, signtficant judgements made by Management in applying the Companies’Bank’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated and separate financial statements as at and for the year ended 31 December 2015. Reporting period ‘These condensed consolidated and separate interim financial report of the Benk and its subsidierles cover up ‘to 3rd Quarter from 1 January 2016 to 30 September 2016. Prior period adjustments. Prior period adjustments, if any, to be recognized retrospectively as per BAS 8 "Accounting Polices, Changes In ‘Accounting Estimates and Errors”. Accordingly for the period ended 2015 an adjustment was made on Zakat Payable under other liabilities due to changes in accounting policy. Since the inception of the bank tax on Zakat ‘expenses was paid from regular income but the Management has changed this policy in the year 2016. Due to the above prior period adjustment Zakat payable amount has been adjusted by Tk. 1,265,802,529 which subsequently increased retained eamings by the same amount (Tk. 1,097,277,355 adjusted with beginning balance of January 20:5 & rest amount Tk. 168,525,176 was adjusted during the year 2015) which resulted to Increase Net Asset Value (NAV) by Tk. 0.69 in solo basis and Tk. 0.68 on consolidated basis as on 30 September 2015 and Tk. 0.79 in solo basis and consolidated basis respectively as on 31 December 2015 . Consequent to this, ligble capital under BASEL-I has been changed by the same amount. However, due to the changes there Is no effect of increasing Eaming Per Share for the year ended 2015. Significant accounting policles Except as described below, the accounting policies applied by the Bank/Companies in this condensed consolidated and separate interim financial report are the same as those applied by the Bank/Companies in its consolidated and seperate financial statements as at and for the year ended 31 December 2016. Income tax expenses: No deferred tax has been calculated for this pertod. Regulatory capital In line with Basebil AAs per Guldellnes on Risk Based Capital Adequacy (Revised Regulatory Capital Framework for Banks in line with Basel-II}), the amount of general provision for regulatory capital will be maximum 1.25% of Risk Weighted Assets against Credit Risk and assets revaluation reserve and revaluation reserve of securities will gredually be deducted in @ transitional arrangement starting from January 2015 to December 2019 (20% in each year). ‘Subsequently as per BRPD Circular No-S, dated 31 May 2036, the full amount of general provision has been made eligible while calculating eligible capital of the bank. Accordingly regulatory capital for the period has been calculated complying with all of these changes as per Revised Regulatory Capital Framework for Banks in line with Baso-IIT. Dividend payments ‘The honorable shareholders of the Bank approved 20% cash dividend for the year 2015 in the 33rd Annual General Meeting (AGM) of the Bank held on 02 June 2016. The dividend was paid during the 2nd quarter of the year 2016. Events after the reporting porlod ‘There were no material events subsequent to the interim reporting period that have not been reflected in the financial statements for the interim period. a6. Consolldsted Fixed assets Including premises, fumiture and fixtures ‘30 Soptomber 2016 || 31 Docomber 2015 Taka Taka ‘Opening balance (book/written down value) TE RSBEST.T97 ESO ATS 565 ‘Ads: Acouislton/ action’ purchase durin the period "288,426,283, '967/559.783, ‘Lees: Salolalsposaliadjustment during the period 12,447 948 246.252,808 DDoprocation chargod curing tho period 39,270,033. 335,720,283, Closing book valualwritton down value at the ond ofthe poriod 76,475 264,463 76,838,557,101 17.0 Provision for un-clasaified, claslfied Investment and Off-balance shoot items Including Off-shore Banking Units (OBU) ‘30 September 2016 || 30 September 2015 Taka Take ‘A.Oponing balance as on 1 January" 23,286,000,000 18 108,400,000 General Provision for Unclassified Investment incucing BU. 4.168,710,000 3,625 480,000 Provision for Claseled Investment 17,751,480,000 +18,384,720,000 Provision for Of-Belance Shost tems 1,939,000,000 4.128;200,000 B, Total deductionfadjustmont from classified Investment forthe period : 192,760,000 ©, Available balance of provision (AB) 23,286 000,000, 340,000 D. 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