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The present Auditors M/s. consider and adopt the Audited Accounts of the Bank together with the Directors’ and Auditor’s Reports thereon for the year ended December 31. To appoint the auditors for the year ending December 31. if any. 2007 (both days inclusive). 2007 to March 30. To receive. Chartered Accountants. Jinnah Road. 2006. 2007 at 9:45 a. telephone bills at actual. 2006. Yousuf Adil Saleem & Co. In this regard. at its Registered Office situated at Regal Chowk.. the Board of Directors Resolution/Power of Attorney with specimen signatures be produced at the time of meeting.m. 3 CDC members are requested to bring with them their Computerized National Identity Cards alongwith Participant’s ID numbers and their account numbers at the time of attending the Annual General Meeting in order to facilitate identification of the respective members. Special Business 4. M. if any member holds more than one folio. In case of corporate entity. To confirm the minutes of the 14th Annual General Meeting of the Bank held on March 31. 2. 1984: Agenda Item No. 2007 Notes: 1. 4 To approve the payment of remuneration and provision of certain facilities to the President and CEO of the Bank. A Proxy must be a member of the Bank. along with other perquisites. 2007 and to fix their remuneration. To transact any other business of the Bank with the permission of the Chair By Order of the Board Place: Karachi Date: February 23. March 30.000/. the following proposed Ordinary Resolution be put before the shareholders of the Bank for their approval. 10 Annual Report 2006 mybank Limited .1. To approve payment of remuneration and provision of certain facilities to the President and CEO of the Bank Any other business 5. 4 Members are requested to promptly notify the change of address. be and is hereby approved by the Bank”. international business class air ticket for self and spouse once a year.000. benefits and allowances to which he is entitled under his terms of employment. and also for the consideration of folio numbers. “RESOLVED THAT The President & Chief Executive Officer’s remuneration not exceeding Rs.NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 15th Annual General Meeting of mybank Limited will be held on Friday. 3. to the Registrar. have offered themselves for re-appointment as auditors of the Bank. Quetta to transact the following business: 1. STATEMENT UNDER SECTION 160(1)(b) OF THE COMPANIES ORDINANCE. Share Transfer Books of the Bank will remain closed from March 24. 2 A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend the meeting and vote for him/her.per month excluding two bank maintained cars with petrol at actual. Proxy forms in order to be effective must be received by the Bank at the Registered Office not later than 48 hours before the time of the meeting.

the Board of Directors declared 5% Cash Dividend to convey the commitment of the Board of Directors and the management. IQBAL ALIMOHAMED Chairman Place: Karachi Date: February 23. Premises and Technology. both to the internal and external stakeholders. stability and strength. We are also committed to maximize return on all stakeholders’ investments. During the first time in the Bank’s history. re-branding and growth in stakeholders’ interest in terms of assets and earnings. 2007 Annual Report 2006 mybank Limited 11 . develop a core team of seasoned professionals. automating operations and increasing customer service standards. In the financial sector a lot of consolidation has been witnessed during 2006. The change of senior management team in August 2006 turned out very positive in terms of business. team effort.Message from the Chairman The Bank has made significant progress during 2006 in terms of restructuring. The focus is to compete with peer banks and cater multiple economic segments. At the same time we have also put significant focus on core banking activities to generate business which is imperative in the long term stability of the organization. I am thankful to the management for their dedication and loyalty and to all stakeholders for their patience that helped us transforming this bank to a new era of success. Serious competitive challenges face us but we strongly believe in combined team effort and firmly achieving our objectives through effective policies. growing branch network not only in bigger cities but also in remote areas where the banking facilities have not been extended yet and automate operations to ensure effective internal controls and enforce Enterprise Risk Management. We will continue to invest in People.

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757 2.060 492.615 9. we have planned desirable projections for the year 2007 when mybank will place itself amongst the top performing banks within next three years. 2007.218.622 210. Financial Highlights Rs in Millions December 2006 Deposits Advances (Net of Provision) Gross Assets Net Assets Net Profit (Before Tax) Profit After Taxation Capital Intermediation Cost 19. The shareholders and our clientele will be satisfied to note the following yearly comparative key financial results which indicate that reasonable improvement has taken place in the size of balance sheet but there is lot yet to be done.848 274.engaged and motivated People. Initiation of Technology rollout.065.06 December 2005 12.549. 2007 President & Chief Executive Officer Annual Report 2006 mybank Limited 13 .888 3.” I believe in building up the core top management team to successfully implement the vision of the Bank and to achieve the targets set for the year to come.856.486.169.13 Increase / (Decrease) 49% 45% 54% 99% 196% 80% 50% (-) 26% Insha Allah with the support of all stakeholders and motivated team of professionals.147 4.721 3.839 26.250 2. Changing economic conditions with growing customer database is another positive outlook of the years to come.549. outsourcing of Business Continuity Plan and adopting methodologies to implement Enterprise Risk Management are the key areas under progress besides strengthening the core operations.294. MUHAMMAD BILAL SHEIKH Place: Karachi Date: February 23.381 17.057.480 5.634 623. We look forward to seek guidance from the regulators. the State Bank of Pakistan and the Securities Exchange Commission of Pakistan through their team of strong professionals.085. My thanks to the Customers and Staff for their continuous support and loyalty with a commitment to deliver the Bank’s Vision and Core Values in true spirits.226 13.

172 492. Afzal Ghani was co-opted in his place on August 25. Muhammad Bilal Sheikh. He took charge of the office with effect from August 11. 3.888 278. Sheikh also served as Deputy Managing Director PICIC Corporation Limited and Chairman National Development Finance Corporation (NDFC).89 14 Annual Report 2006 mybank Limited . Mr.185 1.832 37.057 billion to Rs. Prior to that. The operating financial results of the Bank are summarized as follows: Rs.The Board of Directors welcomes Mr. he enjoys a very high reputation in the banking industry. Mr. the Board of Directors declared 5% Cash Dividend as a mark of commitment to its shareholders. The Bank remained focused on achieving its targets of growth in revenue. 12 dated: August 25. the Bank increased the Paid-up Capital through 50 percent Right Issue (R5) at Par. 2006. PICIC Commercial Bank Limited.297 771. 2.(A minus) for the medium to long term and A-2 (A-two) for the short term with a stable outlook by Pakistan Credit Rating Agency Limited. Performance Review During the year 2006. Muhammad Bilal Sheikh to the Bank.058 billion in December 2006. profitability. 2006 in the 97th meeting of the Board of Directors. President & CEO. Muhammad Bilal Sheikh is a seasoned banker with almost 40 years of diversified experience in banking.060 130. Muhammad Bilal Sheikh as President & CEO of the Bank.772 623. Increase in Paid up Capital As per the requirement of the State Bank of Pakistan. Cash Dividend For the first time in mybank history.DIRECTORS’ REPORT The Board of Directors is pleased to present the 15th Annual Report of mybank Limited for the year ended December 31. 2006. in ‘million’ Profit before taxation and provision against non-performing loans Less : Provision against non-performing loans -net Profit before taxation Less: Taxation Profit after taxation Add: Profit brought forward Profit available for appropriation Earnings per share – Rupees Appointment of President & CEO: The Board appointed Mr. 660. Credit Rating The Bank enjoys A. deposits and significant progress in all areas of operations. The Paidup Capital of the Bank was enhanced from Rs. Muhammad Humayun Nabi Jan resigned from the Board and Mr. Banking Supervision Department circular No. is also a member of the Board. Mr. 2006. His last assignment before joining mybank Limited was President & Chief Executive Officer. the Bank made significant progress in all major areas. Changes in Board composition during 2006 Mr.

The system of internal controls are being further strengthened to manage rather than eliminate risk of failure to achieve objectives. till further instructions. i) The details of Board Meetings held and attended by the directors forms part of this Annual Report. Accordingly the requirements of those standards have not been followed in the preparation of these financial statements. cash flows and changes in equity. the State Bank of Pakistan has specifically deferred the implementation of International Accounting Standard 39. e) The system of internal control is sound in design and has been effectively implemented and monitored. Financial Instruments: Recognition and Measurement and International Accounting Standard 40. Investment Property. Audit Committee An Audit Committee of the Board is functioning effectively in compliance with Corporate Governance rules framed by the Securities & Exchange Commission of Pakistan comprising non executive directors. as applicable to banks in Pakistan. A prescribed statement by the management along with the auditors’ review report thereon forms part of this Annual Report. g) There has been no material departure from the best practices of corporate governance as detailed in the listing regulations of the stock exchanges of Pakistan. BSD Circular letter # 2 of 2005 and the Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). The Bank is in compliance of the Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan and other instructions issued by the State Bank of Pakistan on the code. d) International Accounting Standards. The management has made statements relating to internal control and risk assessment framework to meet the requirements of State Bank of Pakistan (SBP) circular # BSD 7 of 2004. The role of the committee is to assist the Board in fulfilling responsibilities. The committee functions under written terms and reference incorporated in its charter as approved by the Board. have been followed in the preparation of financial statements without any material departure. It has also followed the principles set out in the Listing Regulations of the Stock Exchanges. j) The prescribed pattern of shareholding is given as part of the Annual Report along with the disclosure requirement of clause (xix) sub clause(j) of the Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan. However. and by its nature can only provide reasonable not absolute assurance against material misstatement or loss. b) Proper books of account of the Bank have been maintained. the result of its operations. c) Appropriate accounting policies have consistently been applied in preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. Corporate & Financial Reporting Framework (Code of Corporate Governance) The Board extends support and commitment towards the implementation of the highest standards of Corporate Governance. Annual Report 2006 mybank Limited 15 . h) Summarized key operating and financial data of the last six years is tabulated in this Annual Report.Internal Controls The Board of Directors endorses the management evaluation on the Internal control system prevailing in the Bank during the year. f) There are no doubts about the Bank continuing as a going concern. Statements under Clause XIX of the Code of Corporate Governance a) The financial statements prepared by the management of the Bank present fairly its state of affairs.

e. Equation today helps banks improve their business by increasing customer revenues..e.The present auditors. Yousuf Adil Saleem & Co. but also remote areas allowing customers from all walks of life to be able to carry-out their transactions around the clock. The rollout is under implementation of both Misys modules i. In terms of IT security strategy we have developed and implemented essential policies and are also in the process of implementing an intrusion detection system which will further safeguard our network. Training is a very crucial part of our IT strategy where we have invested in foreign Misys consultants to train our staff on the new core banking system. Chartered Accountants. The directors endorse recommendation of the Audit Committee for the re-appointment of Messers M. thereby strengthening operational controls. Going forward. as the auditors for the year 2007 subject to the laws and regulations prevailing as at the date of the forthcoming Annual General Meeting. The deployment of Equation Branch Automation (front-end) will automate cashier/teller services reducing turn around time of various banking services/products. Messers M. This is achieved through the creative application of straightthrough-processing. Currently our focus is to implement Misys in parallel to Unibank targeting first the Karachi Region Branches and then the other regions. We are also working on proposals to implement our Disaster Recovery Strategy in due course of time. retire and offer themselves for re-appointment. The integration of Trade Innovations with Equation will centralize Foreign Trade Processing again reducing processing turn around and approval times. The deployment of Equation (back-end) will centralize end of day reporting. Future Plans Under the new leadership. Our core strategy is to eventually integrate all other systems including the Consumer Asset Management System (CAMs).. the Bank plans to grow the balance sheet size significantly. Margin Connect. and enable the maker/checker concept further segregating front-end and back-end functions. The formal contracts have been signed off with MSCL and TPS to develop an ATM interface with Misys our new core banking system which will enable us to deploy our own ATM machines in the very near future. increasing profitability. bank is striving to achieve success on various grounds including strengthening of the core deposit base. The bank intends to grow its network in terms of number of branches subject to the approval of the State Bank of Pakistan for which the formalities are underway. Our network strategy is based on deploying LAN/WAN connecting all our 50 branches through three main hubs of Karachi. The deployment strategy for Lotus Notes is already ensuring paperless environment and faster communication between the various internal customers and stakeholders in the bank. customer services focus and gradual enhancement in overall bank operations. Equation and EBA. Islamabad and Lahore. reducing risk and driving business efficiency. We have also implemented e-CIB reporting and are also working to implement other regulatory requirements such as RTGS along with the relevant staff training. This network will enable centralized. Yousuf Adil Saleem & Co. We have also developed a core UAT user team of 11 staff who will not only be responsible for the roll-out of the system but also for training them on it. Equation for effective controls and monitoring and reduced processing times. The Bank has also signed off contract with 1-Link which will enable us to diversify into other financial products/services such as debit/credit cards and payment of utility bills via ATM machines. The Bank has invested heavily in PC deployment. These ATM machines will be strategically located not only in the bigger cities both at the branches and offsite locations. Once Misys is deployed successfully we will be working on the phase out of Unibank as the primary system. IT Infrastructure Technology revamping is underway and the User Acceptance Test has been successfully completed. HR Payroll with our core banking system i. real time processing of banking services. SWIFT. Paradigm shift in deposits and profitability is of immense importance among other strategic initiatives. 16 Annual Report 2006 mybank Limited . Chartered Accountants. classified/ non-performing loans. Substantial resources in terms of human efforts are being applied towards settlement of past misdeeds. automation and centralization.

the management expects to have addressed the requirements of State Bank and Basel II stipulating the necessity and obligation for the implementation of Business Continuity Plan. and small in nature. allocation of capital to business and to identify. acceptance. Acknowledgement We would like to express our gratitude and thanks to the State Bank of Pakistan. monitoring. for Risk Management. Our key focus areas in 2007 include: n Implementation of Basel-II. n Implementation of Advance Warning System n Establishment of Centralized Credit Administration Division n Initiation of Business Continuity Planning project. The Basel II recommendations enable banks to further enhance the risk management process. ensure earning stability. monitor and mitigate risks. The project will include the preparation and testing of the plan on the critical areas of the bank along with 3 branches identified as big. and maximize earnings potential and opportunities leading to shareholder value creation.) Ltd. Securities & Exchange Commission of Pakistan for their professional support and guidance. medium. measure. On the completion of the project. measurement. Business Continuity Plan The bank initiated its Business Continuity Planning Process by outsourcing the project to Sidat Hyder Morshed Associates (Pvt. 2007 Annual Report 2006 mybank Limited 17 . Risk Management 2006 saw a major development in the Pakistan Banking sector. capital planning. The project initiated in November 2006 and the project close-out is planned during April 2007. ultimately protecting the shareholder ’s and other stake holder ’s interests. particularly the related IT systems n Completing the implementation of risk management framework aligned with the SBP Risk Management Guidelines and Basel II n Maintaining the strong risk management culture. Our gratitude is due to our customers for the confidence that they have expressed in the Bank. Mybank risk management framework is moving toward enterprise wise risk management framework. Misys enables banks to integrate the measurement and management of their margins. n Establishment of different committees as per the requirement of Risk Management Guidelines and regulations. with the introduction of the Basel II Capital Accord. risks and costs to drive more effective and consistent decision-making whilst more easily meeting regulatory requirements such as that of Basel 2. protect against unforeseen losses. reporting and control The revised policy manuals were prepared as per the best practices in the banking industry and in terms of requirements of the Risk Management Guidelines. On behalf of the Board Iqbal Alimohamed Chairman Place: Karachi Date: February 23.As part of an ongoing requirement our IT strategy is also keeping abreast of the Basel 2 compliance. We thank our shareholders for their patronage and help. governance and environment that have been built over the past two years. We also thank the management and the staff for their hard work and commitment. During the year the bank has taken the following major initiatives for strengthening its risk management framework:n Formulation of Board Risk Management Committee n Approval of Credit and Market Risk strategy n Approval of clearly defined risk management policies covering risk identification. it set three broad risk management objectives.

a. along with agenda and working papers are always circulated at least seven days before the meetings. 18 Annual Report 2006 mybank Limited . 7. At present the Board comprises of seven Non.Executive Directors. 6. core values. Further training courses will be conducted in year 2007 to enhance the Board members understanding of their responsibilities and duties under the code. The Bank has prepared a ‘Statement of Ethics and Business Practices’ which has been signed by all the Directors and employees of the Bank. including this Bank. 10. 2. 5. b.Executive Directors and Directors representing minority interests on its Board of Directors. 4. The members of the Board have attended a presentation on Corporate Governance conducted by the Secretary of the Bank to acquaint them with their duties and responsibilities. Credit and Risk Management Committees – also ensures compliance of the Bank’s Credit Policies. The Bank encourages representation of independent Non . c. Risk Management Framework and SBP Prudential Regulations. Human Resource Management Sub-Committee – also monitors the remuneration and appointments of senior management as defined in the terms of reference as well as personnel policies and its implementation. The Bank has applied the principles contained in the Code in the following manner: 1. 3. The Directors have confirmed that none of them is serving as a Director in more than ten listed companies. The meetings of the Board were presided over by the Chairman and the Board met eight (8) times in the year. All the Non . All the powers of the Board have duly been exercised and decision on material transaction. The casual vacancy occurred during the year in the Board of Directors have been filled in by the Directors within the stipulated time. Written notices of the Board meetings. overall corporate strategy and significant policies of the Bank. 9. The Board has developed a vision / mission statement. including appointment and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board.Executive Directors of the Bank are registered as a tax payers and none of them has defaulted in payment of any loan to a banking company. The minutes of the meetings were appropriately recorded and circulated. The Board has the following functioning Committees and their terms of reference have been approved by the Board: Audit Committee – also ensures the independence of the internal audit function and the independence and objectivity of the external auditors.STATEMENT OF COMPLIANCE WITH CODE OF CORPORATE GOVERNANCE The Board of Directors and management of mybank Limited has always supported and re-confirm its commitment to continued support and implementation of the highest standards of Corporate Governance at all times. A complete record of particulars of significant policies along with the dates on which these were approved or amended has been maintained. 8. a DFI or an NBFI and are not members of any stock exchange.

24. The financial statements of the Bank were duly endorsed by CEO and CFO prior to presentation before the Audit Committee and the Board of Directors for approval. 15. The Bank has complied with all the corporate and financial reporting requirements of the code. 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. 16. The terms of reference of the Committee have been formed and advised to the Committee for compliance. company secretary and head of internal audit. The quarterly un-audited financial statements of the Bank are circulated along with the Report of Directors. All material information as described in clause (xxiii) of the code is disseminated to the Stock Exchange and Securities and Exchange Commission of Pakistan in a timely fashion. 2006 have been audited and circulated in accordance with the clause (xxii) of the code. as determined by the CEO. 17. The Board has approved the appointment of CFO. and they or any of the partners of the firm. 23. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim and final results of the Bank and as required by the code. all of whom are Non Executive Directors including the Chairman of the Committee. The Internal Audit Division reports directly to the Chairman Audit Committee. The Directors. 12. The Board has set-up an Internal Audit Division. 20. The Directors’ report for this year has been prepared in compliance with the requirements of the code and which fully describes the salient matters required to be disclosed. 19. their spouses and minor children do not hold shares of the Bank and that the firm and all of its partners are in compliance with International Federation of Accountants Committee (IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan. The Board has formed an Audit Committee. 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 auditors have confirmed that they have observed IFAC guidelines in this regard. 22.11. 14. 21. By order of the Board Muhammad Bilal Sheikh President & CEO Place: Karachi Date: February 23. 13. which comprises of four members. 2007 Annual Report 2006 mybank Limited 19 . The information regarding change of Directors has been communicated to the Securities and Exchange Commission of Pakistan (SECP) and Stock Exchanges within the stipulated time. Half-yearly financial statements were subjected to limited review by the statuary auditors. Financial statements for the year ended December 31. We confirm that all other material principles contained in the code have been complied with. CEO and Executives of the Bank do not hold any interest in the shares of the Bank other than that disclosed in the pattern of shareholding. 18.

BSD 7 of 2004. 2. During the year 2006. The existing policies and procedures are being reviewed and revised. The Bank has mission. the management initiated necessary steps to ensure non-repetition and elimination of observations. The management has in place evaluation and approval procedures for major capital expenditure and other transactions. During the year. which reports directly to the Audit Committee of the Board. to ensure a comfortable level of effectiveness. In addition the management had arranged review of the design and effectiveness of the system of internal control through policy revision outsourced to a consultant firm specialized in audit and control procedures. the Bank made considerable efforts in maintaining a suitable internal control framework. Management gives due considerations to the recommendations made by the internal and external auditors for improvements in the internal control system and take timely action to implement such recommendations. 5. vision and corporate strategy duly approved by the Board. A comprehensive and enhanced organization structure is being developed which supports clear lines of communication and tiered levels of authority with delegation of responsibility and accountability. a compliance function has been established to ensure ongoing monitoring of Bank’s compliance with laws. The internal audit periodically carries out audits of branches and central office divisions to monitor the compliance of Bank’s policies and procedures based on an audit plan approved by the Audit Committee. The reviews of the internal controls are being strengthened and measures for improvement where required are implemented. Financial forecasts are reviewed during the year to reflect significant changes in business environment. considering size of its operations. deficiencies and weaknesses identified by the statuary auditors. efficiency and soundness of its internal control system and in implementing the desired control procedures. 8. These include internal audit and various management committees. • Reliability of financial reporting. 20 Annual Report 2006 mybank Limited . 4. regulations and code of ethics. Banking Supervision Department circular letter No. 3. which is currently being implemented.STATEMENT OF INTERNAL CONTROLS Management of mybank Limited is responsible for establishing and maintaining a desirable system of internal control aimed at achieving the following objectives of the Bank: • Efficiency and effectiveness of operations. Further. There is an annual budgeting and strategic planning process. Regular reporting and monitoring of financial performance of the divisions highlighting key performance indicators and variance from budgets and forecasts. The Bank has adopted a statement of ethics and business practices that is signed by all Directors and employees every year. to meet the requirements of the State Bank of Pakistan (SBP) circular No. 6. The management has adopted different strategies to monitor and improve internal controls on going basis. The Bank has an effective internal audit division. The following statements are made by the management. 1. is in place. 7. The Bank has written policies and procedures duly approved by the Board of Directors and are presently under review and being revised. 9. 2 of 2005 and the Code of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP). internal audit and the regulatory agency to the maximum possible level. • Compliance with applicable laws and regulations.

the Bank is also in the process of strengthening its systems for capturing and communicating relevant information and had acquired state of art technology which is in the pilot phase of implementation. which includes identification. 2007 Annual Report 2006 mybank Limited 21 . including the control environment. customer services and operation was adequate. Additionally. the management assesses that the internal control system. By order of the Board Muhammad Bilal Sheikh President & CEO Place: Karachi Date: February 23. and expect that the internal control system will further improve in the period ahead. and revisiting the policies and procedures to ensure that these conform to best practices. risk management and compliance procedures. Accordingly the Bank continuously reviews its entire system of controls.Development of internal controls systems is an ongoing process. evaluation and management of significant risks faced by the Bank. considering the size and nature of banks operations. Based on the evaluation of the system of internal control.

We have not carried out any special review of the internal control system to enable us to express an opinion as to whether the Board’s statement on internal control covers all controls and the effectiveness of such internal controls. which causes us to believe that the Statement of Compliance does not appropriately reflect the Bank’s compliance. Yousuf Adil Saleem & C Chartered Accountants 22 Annual Report 2006 mybank Limited . with the best practices contained in the Code of Corporate Governance as applicable to the Bank for the year ended December 31. Our responsibility is to review. nothing has come to our attention. in all material respects. A review is limited primarily to inquiries of the Bank personnel and review of various documents prepared by the Bank to comply with the Code.37 of the Karachi Stock Exchange and Chapter XIII of the Lahore Stock Exchange where the Bank is listed. whether the Statement of Compliance reflects the status of the Bank’s compliance with the provisions of the Code of Corporate Governance and report if it does not. Place: Karachi Date: February 23. Listing Regulation No.AUDITORS’ REVIEW REPORT TO THE MEMBERS ON STATEMENT OF COMPLIANCE WITH BEST PRACTICES OF CODE OF CORPORATE GOVERNANCE We have reviewed the Statement of Compliance with the best practices contained in the Code of Corporate Governance prepared by the Board of Directors of mybank Limited to comply with Regulation G-1 of the Prudential Regulations for Corporate / Commercial Banking issued by the State Bank of Pakistan. 2007 M. 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. to the extent where such compliance can be objectively verified. Based on our review. The responsibility for compliance with the Code is that of the Board of Directors of the Bank. 2006.

2007 Annual Report 2006 mybank Limited 23 . 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. 1984 (XLVII of 1984). 2006 and the related profit and loss account. we report that: (a) In our opinion proper books of account have been kept by the bank as required by the Companies Ordinance. evidence supporting amounts and disclosures in the financial statements. and the returns referred to above received from the branches have been found adequate for the purposes of our audit. and give the information required by the Banking Companies Ordinance.. cash flow statement and statement of changes in equity together with the notes forming part thereof. We believe that our audit provides a reasonable basis for our opinion and after due verification. 1980 (XVIII of 1980). and the Companies Ordinance. 1962 (LVII of 1962). in which are incorporated the unaudited certified returns from the branches except for nine branches which have been audited by us and we state that we have obtained all the information and explanations which. its cash flows and changes in equity for the year then ended. on a test basis. (b) (ii) The expenditure incurred during the year was for the purpose of the bank’s business. and are in agreement with the books of account and are further in accordance with accounting policies consistently applied. 1962 (LVII of 1962). together with the notes forming part thereof (here-in-after referred to as the financial statements) for the year then ended. to the best of our knowledge and belief. 1984 (XLVII of 1984). in the manner so required and give a true and fair view of the state of the bank’s affairs as at December 31. Yousuf Adil Saleem & Co. and the Companies Ordinance.AUDITORS’ REPORT TO THE MEMBERS We have audited the annexed balance sheet of mybank Limited (the bank) as at December 31. was deducted by the bank and deposited in the Central Zakat Fund established under section 7 of that Ordinance. 1984 (XLVII of 1984). and prepare and present the financial statements in conformity with approved accounting standards and the requirements of the Banking Companies Ordinance. Zakat deductible at source under the Zakat and Ushr Ordinance. We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. 1962 (LVII of 1962). cash flow statement and statement of changes in equity. evaluating the overall presentation of the financial statements. profit and loss account. In our opinion: (i) The balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance. An audit includes examining. were necessary for the purposes of our audit. conform with the approved accounting standards as applicable in Pakistan. (c) In our opinion and to the best of our information and according to the explanations given to us the balance sheet. 2006 and its true balance of the profit. M. and the Companies Ordinance. It is the responsibility of the bank’s Board of Directors to establish and maintain a system of internal control. and In our opinion. investments made and the expenditures 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. Chartered Accountants (d) Place: Karachi Date: February 23. 1984 (XLVII of 1984). as well as. Our responsibility is to express an opinion on these statements based on our audit. which in case of loans and advances covered more than 60 percent of the total loans and advances of the bank. An audit also includes assessing the accounting policies and significant estimates made by management. and (iiii) The business conducted.

856.828 21.846 NET ASSETS REPRESENTED BY Share capital Reserves Unappropriated profit Surplus on revaluation of assets 18 3.072 278.587 690.Balance Sheet As At December 31.067 5.549.669.634 CONTINGENCIES AND COMMITMENTS 20 2.148 135. 2006 Note ASSETS Cash and balances with treasury banks Balances with other banks Lendings to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets 6 7 8 9 10 11 12 13 1.222.135 2.549.409 415.624.480 LIABILITIES Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 14 15 16 225.381 772.218.036.706 14.226 – – – 464.169.089 4.152 1.483.549.486.137.649 588.634 266.757 2006 2005 Rupees in ‘000 17 19 The annexed notes 1 to 42 form an integral part of these accounts.567 1.622 1.220 13.252.297 2.990.839 2.147 156.030.721 254.294.961.057.197 3.398 404.447 17.339.615 – – – 206.225 131.470 19.887 2.322 1.662 12.622 5. Muhammad Bilal Sheikh President & CEO 24 Annual Report 2006 mybank Limited Iqbal Alimohamed Chairman Sohail Muzaffar Vice Chairman Danish Iqbal Director .503 3.516 58.491.928.065.735 1.052 1.085.410.106 2.736 9.065.533.581 26.

3 10.094 37.772 782.668 820.810 865.152 – 2.250 58.685.402) 274.231 – 6. Muhammad Bilal Sheikh President & CEO Iqbal Alimohamed Chairman Sohail Muzaffar Vice Chairman Danish Iqbal Director 25 Annual Report 2006 mybank Limited .Rupees 28 25 20.370 62.268) (63.541 37.087 130.725 – 210.430 200.573 10.516 32.085 – 4.234. commission and brokerage Income Dividend income Income from dealing in foreign currencies Gain on sale of securities Unrealized gain / (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 Extra ordinary / unusual items PROFIT BEFORE TAXATION Taxation .548 – 623.deferred 27 PROFIT AFTER TAXATION Unappropriated profit brought forward Profit available for appropriation Basic / diluted earnings per share .current .534 202.848 38.142 31.5 26 587.486 452.185 1.023 611.297 771.23 115.000 322.147 1.544 138.238 1.prior years’ .026.172 492.370 1.89 530.000 2.744 23 9.927 40.993 70.194 49.548 248. 2006 Note Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Provision against non-performing loans and advances Provision for diminution in the value of investments Bad debts written off directly Net mark-up / interest income after provisions NON MARK-UP/ INTEREST INCOME Fee.686 500.Profit And Loss Account For The Year Ended December 31.829 749.728 538.4 24 The annexed notes 1 to 42 form an integral part of these accounts.888 278.608 68.570 703.897 333.4 21 22 2006 2005 Rupees in ‘000 1.040 15.827 39 (102.525 1.000 23.060 126.997 5.257 (902) 71.

100 59.808 6.447 (1.688.848 (62.600 409.334 – (660.094) 484.626 77.3 CASH FLOW FROM FINANCING ACTIVITIES Issue of share capital Dividend paid Net cash flow from financing activities Effects of exchange rate changes on cash and cash equivalents Increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year 29 Cash and cash equivalents at end of the year 29 The annexed notes 1 to 42 form an integral part of these accounts.751) (4.2. 2006 Note CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Less: dividend income Adjustments for non-cash charges Depreciation Amortisation Provision and write-off against non-performing advances Provision against other assets (Gain) on sale of fixed assets (Gain) on dealing in government securities 2006 2005 Rupees in ‘000 623.044 596.251.219 1.384) (229.230) (249.3 11.476 202.754) (2.184) 1.643) (40.852.787 1.614) (2.037 6.590 (1.773 174.133 3.081 (105.682) 62.815.966 11.334 – 533.692 16.815.278) (7.064) (5.830) 284.312.150 2.060 (138.696) (149.Cash Flow Statement For The Year Ended December 31.010 (2.497.261) 146.206.541) (3.141 210.574 (102.858) 925.040) 148.907) 12.478.000 (11.531.654) 2. Muhammad Bilal Sheikh President & CEO 26 Annual Report 2006 mybank Limited Iqbal Alimohamed Chairman Sohail Muzaffar Vice Chairman Danish Iqbal Director .3 74.856 293.206) 864.885 (1.500) 260.117 (27.239 418.867) – 111.230.907.920 37.808 50.040 (240.239) 22.772 1.008 1.108) 52.133 (Increase) / decrease in operating assets Lendings to financial institutions Held-for-trading securities Advances Others assets (excluding advance taxation) Increase/ (decrease) in operating liabilities Bills Payable Borrowings from financial institutions Deposits and other accounts Other liabilities (excluding current taxation) Income tax paid Net cash flow from investing activities CASH FLOW FROM INVESTING ACTIVITIES Net investments in available-for-sale securities Net investments in held-to-maturity securities Dividend income received Investments in operating fixed assets Sale proceeds of property and equipment disposed-off Net cash flow (used in) / from investing activities 11.475.397.844) 533.407 1.611 132.178 136.340.000 (3.213) (49.212.686 5.716 – 1.088.993 (25.729 1.2 11.3 13.408 (637.934.028.2.

858) 1.850 – 156.028.447 511. 2006 The annexed notes 1 to 42 form an integral part of these accounts.250 (54. 2006 1. 2006 Profit for the year ended December 31.Statement Of Changes In Equity For The Year Ended December 31.523.028.888 18.577 – – 254.447 511.057.297 492. 2005 Transfer to statutory reserve Issue of share capital Opening balance as at January 01.334 2.335 – (102.334 2.085.858) – 588.197 Total Opening balance as at January 01.932 274.683.928.574 3.721 1.072 – – – 98.577) (102.850) – 278.649 58. 2005 Profit for the year ended December 31.335 (98.222 – 54.567 Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Net income recognised directly in equity Transfer to statutory reserve Cash dividend @50 paisas per share Issue of share capital Closing balance as at December 31. Muhammad Bilal Sheikh President & CEO Iqbal Alimohamed Chairman Sohail Muzaffar Vice Chairman Danish Iqbal Director 27 Annual Report 2006 mybank Limited .147 – – – – – 1.516 492. 2006 Share capital Statutory Unappropriated reserves profit Rupees in ‘000 101.250 – 533.491.574 3.888 18.813 – – 533.897 274.

O. and its short term credit rating is A-2 (A-two) with a stable outlook. BASIS OF PRESENTATION In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes. STATUS AND NATURE OF BUSINESS mybank Limited was incorporated in Pakistan on October 7. and the requirements of the said directives take precedence. The requirements of these standards have not been taken into account for the purpose of these financial statements as the implementation of the said standards has been deferred by SBP. Adoption of the above amendments / interpretations may only impact the extent of disclosures presented in the financial statements. STATEMENT OF COMPLIANCE These financial statements are prepared in accordance with the directives issued by the State Bank of Pakistan.Capital Disclosures IFRIC 11. IFRS 2. 2006. the Banking Companies Ordinance. The Bank’s registered office is based in Quetta with principal place of business in Karachi. 1984. and " Exploration for and Evaluation of Mineral Resources". 1962 and operates 50 (2005: 50) branches in Pakistan. or directives issued by the State Bank of Pakistan and the Securities and Exchange Commission of Pakistan differ with the requirements of these standards. interpretation and amendment to published approved accounting standards that are not yet effective The following amendments to existing standards have been published that are applicable to the Bank's financial statements covering annual periods. The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up there-on. 2007 effective from March 01. Out of these. 1984. 1962.Notes to the accounts for the year ended December 31. the Companies Ordinance. the State Bank of Pakistan (SBP) has issued various circulars from time to time. 2006 1. 2002. "Presentation of Financial Statements" . Annual Report 2006 mybank Limited . 1991 as a public limited company under the Companies Ordinance.R. the requirements of the Banking Companies Ordinance. following four IFRSs have been adopted by SECP vide its S. The SECP has approved the adoption of International Accounting Standard 39. and approved accounting standards as applicable in Pakistan. "Financial Instruments: Recognition and Measurement" and International Accounting Standard 40. the Companies Ordinance. 2007 effective from January 01. The Bank is engaged in commercial banking and related services as described in the Banking Companies Ordinance. 1962. 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. 3. for banks in Pakistan till further instructions. However. beginning on or after the following dates: (i) (ii) (iii) IAS-1. " Service Concession Arrangements" effective from January 01. 1984. (I)/2006 dated December 06. " Non-current Assets Held for Sale and Discontinued Operations". the Companies Ordinance. Approved accounting standards comprise of such International Financial Reporting Standards as are notified under the provisions of the Companies Ordinance. Wherever the requirements of the Banking Companies Ordinance. Standard. (i) (ii) (iii) (iv) 28 IFRS-2 IFRS-3 IFRS-5 IFRS-6 "Share-based Payments". Currently the Bank’s medium and long-term credit rating is A. In addition to above. vide BSD circular number 10 dated August 26." Group Treasury Share Transactions" IFRIC 12. "Investment Property". Its shares are quoted on Karachi and Lahore Stock Exchanges of Pakistan. 2009 2. "Business Combinations". 1962. a new series of standards called "International Financial Reporting Standards (IFRSs)" have been introduced and seven IFRSs have been issued by IASB. 1984.(A minus). investments have been classified and valued in accordance with the requirements of various circulars issued by SBP. 1984.

Lendings to / borrowings from financial institutions Sale under re-purchase obligation Securities sold subject to a re-purchase agreement (Repo) are retained as investments and the corresponding counter party liability is recognized as borrowings from financial institutions. balances with other banks in current and deposit accounts and call money lending in the money market. are disclosed in Note 5. which are acquired principally for the purpose of generating profit from short-term fluctuations in price. 5. BASIS OF MEASUREMENT These financial statements have been prepared under the ‘historical cost convention’ as modified by revaluation of land and buildings and valuation of certain investments and derivative financial instruments at fair value. These policies have been consistently applied to all the years presented.2 Annual Report 2006 mybank Limited 29 . Purchase under re-sale obligation Securities purchased subject to a re-sale agreement (Reverse Repo) are recognized as lendings to financial institutions. The difference in sales and re-purchase value is recorded as expense over the period of agreement. Cash and cash equivalents Cash and cash equivalents comprise cash and balances with treasury banks. which is as follows: Held-for-trading securities These are investment securities. or areas where assumptions and estimates are significant to the financial statements. which do not fall under the held-for-trading or held-to-maturity category. The areas involving a higher degree of judgement or complexity. The preparation of financial statements in conformity with International Accounting Standards requires the use of certain critical accounting estimates. Trade date is the date on which the Bank commits to purchase or sell the securities. 5.1 5. Surplus / (deficit) arising on revaluation of held-for-trading securities and amortization of held-to-maturity investments are directly taken to profit and loss account.3 Investments All purchase and sale of investments that require delivery within the time frame established by regulations or market conventions are recognized at the trade date. 5. Available-for-sale securities These are investments. Classification of investments is made based on the intended purpose of holding such investments.13. 4.The Bank expects that the adoption of these pronouncements mentioned above will have no significant impact on the Bank's financial statements in the period of initial application. It also requires management to exercise its judgement in the process of applying the Bank’s accounting policies. Quoted securities other than those classified under held-to-maturity securities are stated at market value in accordance with the requirements of the State Bank of Pakistan (SBP). SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. Held-to-maturity securities These are investment securities with fixed or determinable payments and fixed maturity and the Bank has the positive intent and ability to hold-to-maturity. interest rate movement or dealer's margin. The difference between contracted and re-sale price is recorded as income over the period of agreement. Investments held-to-maturity are stated at amortized cost. unless otherwise stated.

Amortisation is provided applying the straight line method at the rates mentioned in note 11.owned Property and equipment During the year the Bank has changed its accounting policy with respect to the valuation of its immoveable assets. 2000. participatory certificates and term finance certificates) is made after considering impairment. participatory certificates and term finance certificates is made in accordance with the requirements of Prudential Regulations issued by the State Bank of Pakistan (SBP). Gains and losses on disposal of fixed assets are included in income currently.2. Specific and general provisions are determined in accordance with the Prudential Regulations issued by the State Bank of Pakistan and charged to profit and loss account. property and equipments. Subsequent costs are included in an asset's carrying amount or recognised as a separate asset.5 30 Annual Report 2006 mybank Limited . are stated at cost or revalued amounts less accumulated depreciation and impairment losses. if any. The assets' residual values and useful lives are reviewed. Intangible assets Intangible assets are stated at cost less accumulated amortization and impairment loss. Advances are written-off when there is no realistic prospect of recovery. bonds. Break-up value of shares is calculated with reference to net assets of investee company based on latest available audited financial statements. Depreciation is provided on assets acquired during the year from the month of purchase of assets. Depreciation on premises on leasehold land and furniture and fixture is charged to income applying the reducing balance method and depreciation on computer equipments and vehicles is charged to income applying straight line method at the rates stated in note 11. if any. Surplus on revaluation of fixed assets to the extent of incremental depreciation charged to the related assets is transferred to retained earnings (net of deferred tax). if any. Unquoted equity securities are valued at lower of cost and breakup value less impairment losses. Provision for diminution in the value of securities (except debentures. Operating fixed assets . 5. Capital work-in-progress Capital work-in-progress is stated at cost. Provision for diminution in value of debentures. if any. 20 dated August 4. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. in their value. and adjusted if appropriate. As per the revised policy. bonds. at each balance sheet date. and on assets disposed-off during the year till the month these assets are disposed-off. as appropriate. only when it is probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably. other than land which is carried at revalued amount. the surplus / (deficit) arising on securities classified as available-for-sale investments for which ready quotes are available on Reuters page (PKRV) or Stock Exchange is kept in a separate account and shown in balance sheet below equity.4 Advances Advances are stated net of general and specific provisions.3. 5. Gains and losses on disposal of investments are taken to profit and loss account in the year in which they arise.In accordance with the requirements of Banking Surveillance Department circular No.

except when it relates to items charged or credited directly to equity. the carrying amount of the assets is reduced to its recoverable amount. or half percent of turnover whichever is higher in accordance with the provisions of Income Tax Ordinance. Defined benefit plan The Bank has a gratuity fund.7 5. Interest / mark-up on re-scheduled / re-structured loans and advances and investments is recognized in accordance with the directives of the State Bank of Pakistan. commission and brokerage income is recognized on accrual basis.33 percent of the basic salaries of the employees. However. Impairment losses are recognized as an expense immediately. 5. tax credits. providing for major temporary differences arising at the balance sheet date. the Bank reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss.9 Revenue recognition Mark-up / return / interest on advances and return on investments are recognized on time proportion basis except in case of advances classified under the Prudential Regulations issued by the State Bank of Pakistan (SBP) on which mark-up is recognized on receipt basis.5. the Fund being a separate legal entity still exists and the members entitled to the balance of fund shall be able to draw their balances upon completion of or termination from the employment of the Bank. Fees. to the fund at the rate of 8. 2001.6 Impairment At each balance sheet date. Dividend income is recognized when right to receive is established. Deferred tax is charged or credited in the profit and loss account. Equal monthly contributions are made. Deferred taxes are calculated at the tax rate that are expected to apply to the period when the liability is settled or the asset realized. between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Recoverable amount is the greater of net selling price and value in use.8 Staff retirement benefits Defined contribution plan The Bank operates an approved provident fund scheme for all its permanent employees. contributions to which have been discontinued since 2002. if any. 5. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that tax profits and taxable temporary differences will be available against which deductible temporary differences can be utilized. If any such indication exists. in which case their deferred tax is also dealt within equity. If the recoverable amount of an asset is estimated to be less than its carrying amount. Taxation Current Provision for current taxation is based on taxable income at the current rate of taxation after taking into account. the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss. tax rebates and exemption available if any. Annual Report 2006 mybank Limited 31 . The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits and taxable temporary differences will be available to allow or part of the asset to be recovered. Rent on lockers is recognized on receipt basis. both by the Bank and its employees. Deferred Deferred tax is calculated using balance sheet liability method.

Critical accounting judgements and key sources of estimation uncertainty Critical judgements in applying the Bank’s accounting policies.12 5.11. which are dealt with below): a) Held-to-maturity securities As described in note 5. it is probable that the outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.5.3. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. management has made the following judgements that have the most significant effect on the amounts recognized in the financial statements (a part from those involving estimations. are discussed below: a) Provision against non-performing advances The Bank continuously monitors the recoverability of advances and makes general and specific provisions as considered necessary to comply with the Prudential Regulations issued by the State Bank of Pakistan (SBP).2 5.11. Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in functional currency at the rates of exchange ruling on the balance sheet date. Foreign currency translation Functional and presentation currency These financial statements are presented in rupees.1 5. Commitments Commitments for outstanding forward foreign exchange contracts are disclosed in these financial statement at committed amount. Financial instruments Financial assets and liabilities are recognized at the time the Bank becomes a party to the contractual provisions of the instruments.4 and 20. which is the Bank’s functional and presentation currency.11 5. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. The classification of these securities involves management judgment whether the financial assets are held-to-maturity investments. Key sources of estimation uncertainty The key assumptions concerning the future. In the process of applying the Bank’s accounting policies. management considers that the Bank is not likely to incur further liabilities mentioned therein. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimates.10 Provisions Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events. 5.3 5.5. and other key sources of estimation uncertainty at the balance sheet date. b) Taxation and Contingencies As described in notes 20. held-to-maturity securities are investments where the management has positive intent to hold-to-maturity.11.13 32 Annual Report 2006 mybank Limited . Transaction and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Any gain or loss on the recognition and de-recognition of the financial assets and liabilities is included in the net profit and loss for the year in which it arises. Foreign bills purchased and forward foreign exchange other than those relating to foreign currency deposits are valued at the rates applicable to the respective maturities of the relevant foreign bills purchased and forward exchange contracts.

The Bank also applies the subjective criteria of classification on regular basis and accordingly the classification of an advance is downgraded on the basis of evaluation of credit worthiness of borrower, its cash flows, operations in account and adequacy of security in order to ensure the best estimate of the provision. b) Useful life of property and equipment Useful life of the property and equipment are based on management’s best estimates. 5.14 Off - setting Financial assets and liabilities are only set off and the net amount is reported in the financial statements when there is a legally enforceable right to set off and the Bank intends either to settle on the net basis or to realize the assets and to settle the liabilities simultaneously. Note 6. CASH AND BALANCES WITH TREASURY BANKS In hand Local currency Foreign currencies With State Bank of Pakistan in Local currency current accounts Foreign currency current account Foreign currency deposit account With National Bank of Pakistan in Local currency current accounts 382,481 14,920 397,401 6.1 6.2 6.3 1,489,763 10,111 25,519 1,525,393 67,258 1,990,052 6.1 6.2 406,814 20,333 427,147 780,366 6,927 16,946 804,239 179,012 1,410,398 2006 2005 Rupees in ‘000

Deposits are maintained with the State Bank of Pakistan (SBP) to comply with their requirements issued from time to time. This represents non-remunerative cash reserve of 5 percent on deposits held under the new foreign currency account scheme, required to be maintained with the State Bank of Pakistan. This represents statutory cash reserve maintained against foreign currencies deposits mobilised under FE-25 scheme, as prescribed by the State Bank of Pakistan (SBP) and is remunerated on monthly basis at rate of return specified by the SBP. Note 2006 2005 Rupees in ‘000

6.3

7.

BALANCES WITH OTHER BANKS In Pakistan On current accounts On deposit account 240,729 500,000 740,729 Outside Pakistan On current accounts On deposit accounts 475,392 5,968 481,360 1,222,089 248,546 – 248,546 122,768 33,421 156,189 404,735
33

7.1

7.2

Annual Report 2006 mybank Limited

7.1

This represents placement of funds with a local bank maturing within 3 months of the balance sheet date and carrying interest of 12.75 percent (2005: Nil) per annum. The principal and interest amount is receivable at the time of maturity. This represents placement of funds with foreign bank amounting to GBP 50,000 (2005: GBP 50,000 and EURO 400,000) maturing within 1 month of the balance sheet date and carrying interest of 5.00 percent per annum (2005: 4.37 percent and 2.22 percent per annum respectively). The principal and interest amount is receivable at the time of maturity. Note 2006 2005 Rupees in ‘000

7.2

8.

LENDINGS TO FINANCIAL INSTITUTIONS Call money lendings Repurchase agreement lendings (reverse repo) 8.1 8.2 1,025,000 3,005,887 4,030,887 637,000 896,503 1,533,503

8.1

These represent clean placements and call money lendings to various non-banking finance companies and financial institutions with maturity period of 4 days and carry mark-up ranging from 12.00 percent to 12.50 percent per annum (2005: 5.75 percent to 13.00 percent per annum). These represent lendings to financial institutions against purchase of government securities and listed shares under resale obligation (reverse repo) at mark-up rates ranging from 8.40 percent to 15.00 percent per annum for periods ranging between 4 to 47 days. These are secured against underlying government securities and listed shares. The difference between purchase and resale purchase price is treated as mark-up income and recognised over the period of reverse repo agreement. 2006 2005 Rupees in ‘000

8.2

8.3

Particulars of Lending In local currency In foreign currencies 4,030,887 – 4,030,887 1,533,503 – 1,533,503

34

Annual Report 2006 mybank Limited

8.4

Securities held as collateral against lending to financial institution Held by the Bank 2006 Further given as collateral – – – – Total Held by the Bank 2005 Further given as collateral – – – – Total

Rupeesin ‘000 Market treasury bills Pakistan investment bonds Listed companies’ shares 1,210,227 525,000 1,270,660 3,005,887 8.5 9. 9.1 1,210,227 525,000 1,270,660 3,005,887 – – 896,503 896,503 – – 896,503 896,503

Market value of the collaterals held under repurchase agreement lending amounts to Rs. 3,678 million. INVESTMENTS INVESTMENTS BY TYPES Note Held by the Bank 2006 Given as collateral Total Held by the Bank Rupees in ‘000 149,788 – 149,788 – – – 10,000 488,035 – – 50,000 548,035 552,198 1,243,280 650,484 51,747 2,497,709 3,195,532 – 3,195,532 (902) 2005 Given as collateral – – – – – – – – – – – – – – – – – – – – – Total

Held-for-trading securities Listed companies’ shares Mutual fund - units - listed

248,715 88,929 337,644

– – – – – – – – – – – – – – – – – – – – –

248,715 88,929 337,644 779,163 346,250 254,893 10,000 313,913 75,000 250,000 50,000 2,079,219 539,535 – – 50,996 590,531 3,007,394 – 3,007,394 40,993

149,788 – 149,788 – – – 10,000 488,035 – – 50,000 548,035 552,198 1,243,280 650,484 51,747 2,497,709 3,195,532 – 3,195,532 (902)

Available-for-sale securities Market Treasury Bills National Investment Trust units Term finance certificates Unlisted companies’ shares Mutual funds - units - listed Mutual funds - units - unlisted Certificates of investment Preference shares

779,163 346,250 254,893 10,000 313,913 75,000 250,000 50,000 2,079,219

Held-to-maturity securities Pakistan Investment Bonds Market Treasury Bills Term finance certificates WAPDA bonds

539,535 – – 50,996 590,531

Investment at cost Less: Provision for diminution in value of Investments Investments (net of provisions) Surplus / (deficit) on revaluation of 9.4 held-for-trading securities Surplus / (deficit) on revaluation of available -for-sale securities 19 Investments at market value

3,007,394 – 3,007,394 40,993

(87,167) 2,961,220

– –

(87,167) 2,961,220

58,106 3,252,736

– –

58,106 3,252,736

Annual Report 2006 mybank Limited

35

074.2 2006 2005 Rupees in ‘000 779.2.715 1.2 INVESTMENTS BY SEGMENTS Federal Government Securities: Market Treasury Bills Pakistan Investment Bonds Fully Paid up Ordinary Shares: Listed companies Unlisted companies Preference shares Term Finance Certificates.630 50.035 – – – 488.250 1.units .231 488.788 10.4 19 40.000 50.000 308.736 Other Investments Mutual funds .842 75.035 3. Debentures.007.092 Total investment at cost Less: Provision for diminution in value of investment Investments (net of provisions) Surplus / (deficit) on revaluation of held-for-trading securities Surplus / (deficit) on revaluation of available-for-sale securities Total investments at market value 3.163 539.106 3.394 9.000 50.Note 9.unlisted Certificate of investment National Investment Trust .252.T discounting of the branches of the Bank.318. Bonds and Participation Term Certificates: Listed term finance certificates Unlisted term finance certificates WAPDA bonds 9.2.889 114.1 Market treasury bills and Pakistan investment bonds are held with the State Bank of Pakistan and are eligible for re-discounting. 36 Annual Report 2006 mybank Limited .10 million) pledged with National Bank of Pakistan as security to facilitate T.2.478 149.394 – 3.195.280 552.243.167) 2.2.2.263 54.698 248.498 51.715 10.units 402.795.993 (87.961. 12.996 305.10 million (2005:Rs.000 346.units .000 209.986 535.532 (902) 58.788 200.1 & 9. 9.listed Mutual funds .007. 12.195.220 9.1 9.747 702.198 1.000 250.535 1.2 This includes securities having face value of Rs.532 – 3.

177 99.000 5.166 18.440 9.7 9.3.000 98.listed Crescent Leasing Corporation Ltd.3.648 35.1 9.3. Dewan Farooq Spinning Mills Ltd.8 2006 Rupees in ‘000 5. 9.283 201.3.030 75.2 11.980 70.210 117.000 – 256.000 100.482 4 Stars 4 Stars 204. Telecard Ltd Unlisted companies’ shares Khushhali Bank Ltd.3.2 129. Term finance certificates .3.1 9.units .644 546.630 31. Dewan Textile Mill Ltd.1 150.1 778.3.072. Dewan Mushtaq Textile Mill Ltd.units . Total 9.3 Quality of Available for Sale Securities Securities (At market value) Market Treasury Bills National Investment Trust-unit Term finance certificates .000 250.860 315.shares .000 9.1 9.Note Amount 9.400 2. Mutual funds . 9. Azgard Nine Ltd.000 2006 2005 Rating Amount Rupees in ‘000 Rating Unrated 4 Stars Unrated Unrated Unrated Unrated – – – – – – – AA – – – AA 10.131 9.4 Unrealized gain / (loss) on revaluation of investments classified as held for trading Note Listed companies’ shares Mutual fund .unlisted Bosicor Pakistan Ltd.287 126.991 25.2 These represent the break-up values of the assets which are higher than the cost at which these have been carried in the financial statements.750 54.3.850 679.listed UTP Large Capital Fund (Formerly ABAMCO composite fund) Faysal balance growth fund Pak strategic allocation fund Dawood money market fund Certificates of Investment Saudi Pak Leasing Security Leasing Preference shares Pak Elektron Ltd.131 – 85.listed 9.714 5.3.345 40.1 9.1 Fair value of these investments can not be calculated as active market does not exist.960 – A- 171.951 Unrated 9.141 A-2 A-2 – – Unrated 122.unlisted NAFA Cash Fund Mutual funds .3.993 (902) – (902) 2005 Annual Report 2006 mybank Limited 37 .

9. Dewan Textile Mills Ltd.000 373.000 100.913 100.50 and 12.75 percent per annum.000 50.50 and 12. After 18 months .000 100.6 Principal terms of investments Investee Pakistan investment bond Market treasury bills Maturity Feb 2011 to Oct 2013 Feb 2007 to Dec 2007 Principal Payment On maturity On maturity Coupon Rate % 8.50 percent with floor and cap respectively of 7. Over 4 years Quarterly Crescent Leasing Corp.Khushhali Bank Ltd. Ltd. Principal After 2 years on equal basis . SBP discount rate plus 1.50 percent per annum.6.000 10.over 5 Years Over 6 years Over 7 years Semi-annually Semi-annually Semi-annually 38 Annual Report 2006 mybank Limited . Azgard Nine Ltd.1 Particulars of investments held in Government Securities 213.75 percent per annum.000 10. Average 6 months KIBOR plus 3.5 Particulars of investments held as strategic investment UTP large capital funds (Formerly ABAMCO composite fund) Pakistan strategic allocation fund Faysal balance growth fund Dawood money market fund Preferences shares . Average 'ask side' rate of 6 month KIBOR plus 175 bps with no floor and no cap. Telecard Ltd.6. Average 6 months KIBOR plus 3.913 100.00 to 14.00 8. Average 6 months KIBOR plus 3.50 percent per annum.75 percent per annum.00 percent per annum.50 percent with floor and cap respectively of 7. SBP discount rate plus 1. Over 5 years Semi-annually Dewan Farooq Spinning Mills Ltd.2 Particulars of investments held in Term Finance Certificate Investee Bosicor Pakistan Ltd.over 5 years Interest Semi-annually Rate of mark-up profit 6 month KIBOR plus 550 bps with a floor and cap respectively of 9. Over 4 years Quarterly Dewan Mushtaq Textile Mills Ltd.000 – – 50.00 and 13.913 9.913 9.000 573.Pak Elektron Unlisted Shares .64 to 9.2006 2005 Rupees in ‘000 9.00 Coupon Payment Semi-annually At maturity 213.

National Bank of Pakistan Oil and Gas Development Corporation Pakistan Petroleum Ltd.7 Investment in listed securities .287 43. 2007 Mar 30.550 37.5 Particulars of investments in NIT units Face Value National Investment Trust units National Investment Trust units 250. G.500 680.net Market Value as on December 31 Annual Report 2006 mybank Limited 39 . Pakistan Oil Fields Ltd.000 9.000 350.988 74.460.800 149.000 – – – – 178.000 750.715 5. D.605 – – 248. of ordinary shares share (Rupees) Name of Company 350.000 190.3 Particulars of investments held in WAPDA bonds Bonds and debenture Principal mark-up/ Profit Cost Rupees in ‘000 WAPDA bonds .250 Market Value 223. 2007 Mar 29.000 250.25% Rate of mark-up/ profit 9.747 SBP discount rate .10th issue Repayment in 5 Years Semi-annually 51.000 858.500 10 10 10 10 10 10 MCB Bank Ltd.803 92.6.000 346.273 86.4 Particulars of investments held-certificates of investment Party Name Face Value Rupees in ‘000 Saudi Pak Leasing Security Leasing Corporation Security Leasing Corporation 150.188 315. Khan Cement Ltd.000 25.648 254.991 Jun 03.363 – – – – 74.886 2005 Add: Surplus / (loss) on revaluation of shares .000 170.9.000 75.0.788 (902) 148.6.6.000 100.000 Book Value Rupees in ‘000 246. 2007 On maturity On maturity On maturity Maturity Date Principal and Markup Payment 9.250 100. 2006 2005 2006 Rupees in ‘000 81.000 – – 1.ordinary shares Paid up value per No.

Sultan-ul-Arfeen Mr.000 15. Dewan Ghalib Mustafa Khalid M. Yousuf Farooqi Mr.000 250. Ltd.974 39.(net) Market Value as on December 31 Investment in term finance certificate .9.000 8.000 25 47. Bosicor Pakistan Ltd.345 455.8 Investment in mutual funds No.405 9.held-for-trading Market Value as on December 31 Book Value Market Value Rupees in ‘000 171.070 40 Annual Report 2006 mybank Limited .980 200.291 Pak Mobile Telecommunication Ltd.000 435. 10 million each) Mr. Azgard Nine Ltd.000 20.234.000 88.985 – 214. Hamid Farooq Mr.000 74.000 45.000 6. Dewan Ghalib Mustafa Khalid Mr.000 30.239 Less: Deficit on revaluation of mutual funds (net). Dewan Textile Mill Ltd. Pak Arab Fertilizer Pvt.714 5.440 40.498 25.000 15.000 – 27.000 8.000 124.000 70.274 75. Challea Mr.985 Add: Surplus on revaluation of TFCs .000 15.750 – 100.sale Add: Surplus revaluation of mutual funds (net) . 5.953 7.753.000 – 6.483 54.000 1. of certificates 10.842 (57.266 20.263 1. Name of Chief Executive Mr.985 100.283 99.available .000 No.000.498 650.131 85.000 Name of Company Crescent Leasing Corporation Ltd.126.291 92.391.000 15.each with face value of Rs.000 5. Mueen Afzal Redeemed Value 2006 2005 Rupees in ‘000 30.000 10. Dewan Mushtaq Textile Mill Ltd. Javed A.000 20.000 477. 5.266 5.630 256. of Units Investee UTP large capital fund (Formerly ABAMCO composite fund) Pak strategic allocation fund Faysal balance growth fund NAFA cash fund Close ended Close ended Open ended Open ended 21. Telecard Ltd.9 Investment in term finance certificate .000 214.000 8. Pervaiz Abbasi Mr. Dewan Farooq Spinning Mills Ltd.166 18.929 75. Tanveer Ahmed – 25.000 8.312 10.listed .000 455.266 5.913 100.266 72.177 201.each with face value of Rs.unlisted . (face value of Rs.405 213.000 45.782) 35.for .

1 10.3 Advances .523 10.840) (406.11.10.098 296.844) (2.1.00% Cost / Paid up Value per share / unit 10 10 Total Paid up Value Break up Value Based on accounts audited as at Dec-05 Jun-06 Rupees in ‘000 1. BSD ( RU-26) 265)/625-MfB/13817/00 dated August 07.379) (5. Note 2006 2005 Rupees in ‘000 9.135.524 1.123.1. These preference shares carry fixed dividend of 9. of shares / units held Note Name of Investee Company Name of Chief Executive Percentage of holding % 0.637.743 13.000 5.10.000 50. payment of call option can be exercised by PEL upto 75 percent after 3 years but before 5 years of issue at the higher of three months average quoted price of preference shares plus any cumulative unpaid dividend or issue price plus call premium of 1.354.538.ordinary shares / preference shares No.893.713.893.624) 9.000.10 Investment in unlisted securities .2 Short Term ( for upto one year) Long Term ( for over one year) 12.248 13.294.628 8.net of provision 13.486.400 9.1 Khushhali Bank Ltd.000 9.000.713.145 9.628 – 13.Gross Provision against loans and advances Specific provision General provision against consumer loans 10.206 467.151 1.10. In Pakistan Outside Pakistan Bills discounted and purchased (excluding treasury bills) Payable in Pakistan Payable outside Pakistan Financing in respect of continuous funding system (CFS) Advances .351 686.275 7.005 – 9. Ghalib Nishtar Mr.9.577. cash credits.1 This represents the Bank’s subscription towards the paid up capital of Khushhali Bank in terms of SBP letter No. For redemption.381 9.2 Pak Elektron Ltd.60% 4.005 (413.303 140. The break up value per share was Rs.0 percent plus any cumulative unpaid dividends.523 (403.005 8. (PEL) Mr.1 6.152 10.005 10.999 13. ADVANCES Loans.000 11. Conversion option of preference shares into ordinary shares can be exercised by the Bank upto 25 percent after 3 years but before 5 years of issue date as per ratio specified in the agreement.7 10.893.713.684) 13.1 Particulars of advances .523 Annual Report 2006 mybank Limited 41 .839 546.206 – 8.713.637. 2000.50 percent on cumulative basis.Gross In local currency In foreign currencies 13.854 9.654 389. etc.10.030 129. Naseem Saigol 10.054 763.886.245) (418. 9. running finances.2 10.03.123.

388) 413.840 – 2.4 413.220 8.624 10.020 million (2005: 1.020 403.777) 33.220 8.840 Total 406.730) 200.10. 2006. in the substandard category.313.624 – 94.379 – 94.405) – 2.844 403.844 10.231 (43.844 Total Provision Held Domestic Overseas Total 940.660 46.376 – – – – – – 7.00 million and above.248 403. the Bank changed the method of computation of provision against the non-performing advances. 42 Annual Report 2006 mybank Limited .762 (32.388) 418. issued by the SBP.413 (60.248 1. Had the above referred increase in the rate of the provision for substandard category and increase in the limit of financing for taking the benefit of the FSV not occurred.248 403.660 46.844 388.120 – 1.245 418.844 – 403.534 388.882 (32.3 Particulars of provision against non-performing advances 2006 Specific Opening balance Exchange adjustments Charge for the year Reversals Amounts written off Closing balance 10.840 Total 418.379 – 413.171) 403. The Circular requires the Bank to create provision at a rate of 25 percent.3.00 million.00 million and above as against the previous requirement to restrict the same to financing facilities of Rs. for the purposes of determining provision against nonperforming advances.649 19. instead of 10 percent of non-performing loans.844 General 5.413 (63.177 – 7.171) 406.182) 31.376 – – – – – – 7. 61.237 million) which have been placed under non-performing status as detailed below: 2006 Category of Classification Classified Advances Domestic Overseas Total Provision Required Domestic Overseas Rupees in ‘000 Other Assets Especially Mentioned Substandard Doubtful Loss 4.684 Specific 258.684 Specific 413.730) 199.379 Rupees in ‘000 5.245 – 5.2 During the current year.1.405) (2.011.376 – 7.152 (44.1 Particulars of provisions against non-performing advances 2006 Specific In local currency In foreign currencies 403.624 2005 General Total 10. 02.245 Total 262.248 388.844 General 2.020 – – – – – 4. profit before taxation for the current period and advances net of provision at the end of the current period would have been higher by Rs. 5.684 – 406.735 – 231.245 – – (2. 10. dated January 14.860 – 232.534 1.220 8.120 – 5.649 19.636 (43.177 940. in order to comply with the requirements of BSD Circular No.220 8.2 Advances include Rs.011. The Circular also requires the adjustment of the Forced Sale Value (FSV) of the collaterals to financing facilities of Rs.032 (44.624 – 418.011.376 388.379 Rupees in ‘000 2005 General 4.125 – 1.3.

6 10.363 609.964 10. 500.304 58.388 2.534 46. 1962 the Statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above allowed to a person(s) during the year ended December 31.183 772.63 percent (2005: 12.077 7. OPERATING FIXED ASSETS Note Capital work-in-progress Property and equipment Intangible assets 11.4.712 44.992 (34.4 10.000 and above Write offs of Below Rs.499 423 46.340 39.404 64. executives or officers of the Bank or any of them either severally or jointly with any other persons Balance at beginning of year Loans granted during the year Repayments Balance at end of year Debts due from companies or firms in which the directors of the Bank are interested as directors.712 10.2 11.922 10.332) 20. Annual Report 2006 mybank Limited 43 .171 6. However.and above In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance.5 49.1 11.340 73.000 10. partners or in the case of private companies as members Balance at beginning of year Loans granted during the year Repayments Balance at end of year 14.077 9.3 2006 2005 Rupees in ‘000 43.3 2006 2005 Rupees in ‘000 132. 2006 2005 Rupees in ‘000 Debts due from directors. 2006 is given at Annexure-I.982 (15. Particulars of loans and advances to directors.1 Particulars of write offs: Against provision Directly charged to profit and loss account 10.541 49.602 3.5 Details of loan write off of rs.364 3.133 1.964 5.900.083 629 49. associated companies.511 (36.225 159. 500.648) 14.7 This represents secured financing in respect of purchase of shares from the CFS market and carries markup of 12.Note 10. etc. 500.000/.098) 54.477 43.728 2. this write-off does not affect the Bank's right to recover the debt from their customers.000 74.036.12 percent) per annum.422) 58.2 Write offs of Rs.922 46.211 (10.148 11.4.

222) – – – (174.) Limited (independent valuer) to determine the cost of land.736 (6.179 116.014) – (174.459 2. as at Dec 31.505 132.363 11.954 31.33 17.535 441.266 14.749 113.Note 11.411) 659. 2006 2006 % Rupees in ‘000 Lease hold land Buildings Furnitures and fixtures Computer equipments Vehicles 11.2.837 159.591 122.3 – 67. 2006 Additions/ (deletions) DEPRECIATION Revalution adjustment Book value Rate of Balance Balance Revaluation as at Dec 31.672 1.1 Previously the break-up of land and buildings as separate categories of fixed assets had not been given.155 40.1 11.749 113.392 56.889 37.2.482 – – – 202.719 103. depreciation as at Dec 31.782 – 190. 2005 DEPRECIATION Charge / impairment Balance. During the current year a detailed exercise was conducted by Sadruddin Associates (Pvt.364 COST Balance.927 1.1.807 29.439 (5.136 27.951) 7.1 This includes payments made towards implementation of Misys (Core Banking Application Software System) 11. Based on the report of the valuation consultants. 2005 Rate of depreciation % Tangible Premises on lease hold land Furniture and fixture Computer equipments Vehicles 2005 (Rupees in ‘000) 634.717 15.051.020 (32.222) – 504.148 425.247 90.372) 7. as at Jan 1. as at Dec 31.2.018 11.677 1.395 114.906) 6.306 (9.581 (3.231.000.304 (26.473 175.080 1.237 167.667 58.127 184. 2005 Book value Balance.080 66.1 – 659.032 97.1.281 94.775) 6.218 106.512 (45.769) 19. 2005 Additions / (deletions) Balance.545 609. as at Jan 01.635 468.051.014) 504.782 504.2 Property and equipment COST Balance Note as at Jan 01.692 (34.891 1.237 11.802 25 20 – 2006 130.934 10.865 80.423 (2.816 121.068.219 (15.290.782 5 563.634 (850) 8.635 – 42.618 1.871 53. 2005 Balance.386) 326.179 116.602 5 10 to 33.2.707 104.438 (11.948 68.235 107. the value of land has been transferred from the land and buildings category and is being shown separately 44 Annual Report 2006 mybank Limited .601 (18.763 43.900.133 25.1 11.127 184. Charge/ adjustment 2006 2006 impairment Balance as at Dec 31. as in many cases cost of land had been merged with the cost of building at the time of purchase.718) 190.917) 50.108) 74.867) 96.535 441.226.080 1. as at Jan 1.109 10 to 33.032 97.982 (23. as at Dec 31.889 37.1 Capital work-in-progress Civil works Equipments Advances to suppliers and contractors 2006 2005 Rupees in ‘000 628 131.518 83.281 94.678 23.661 23.33 25 20 11.

728 3.33 Annual Report 2006 mybank Limited 45 . Mohammad Iqbal Mr. 2006 Rupees in ‘000 2.014 1.085 5.255 679 1. 11.3 Details of disposals of fixed assets Description Vehicles 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Toyota Corolla Toyota Corolla Suzuki Swift Toyota Corolla Honda Civic Honda Civic Toyota Corolla Toyota Corolla Suzuki Khyber Yamaha 100 Vespa Scooter Vespa Scooter Vespa Scooter Honda Civic Toyota Corolla Suzuki Baleno Honda Civic Toyota Corolla Mercedez Benz Suzuki Swift Toyota Land Cruiser 557 679 363 609 723 828 602 602 365 48 60 63 61 858 619 749 1. Shshid Mian 6. 1 million which ever is lower 5.255 679 4. Nazir Ahmed (EVP) Mr.583 Furniture & Fixture Other items having book value of less than Rs.242. Ajmal Khan (VP) Mr.2.689 18.242.) Limited on the basis of market value.620 2.867 8. Ahmed Bhatti Mr.239 11. Adnan Bhatti Insurance Claim Recovered Ch.179.4 The land and buildings currently in use of the bank include certain properties that have been acquired in satisfaction of claims.372 23. This valuation was incorporated at June 30.664 8.386 3. Ajmal Kanju Mr.899 1.3 Intangible assets COST Balance as at Jan 01. Mohammad Iqbal Mr. The revaluation resulted in a surplus of Rs.935 504.2. 0.1. 2006 by Sadruddin Associates (Pvt. details of which are as follows: Description Book value before Revaluation – 441. 2006. Adnan Bhatti Mr.956 2. Bahauddin Khan Mr.452 Book value Balance as at Dec at closing 31. 11.437 3. separate disclosure of carrying amount of these land and buildings can not be given. Iqbal Saleem Mr. 512. 2006 amounted to Rs.465 2. 53. 2006 Additions/ (Deletions) Balance as at Dec 31.920 1. Adnan Bhatti Mr. 2006 Rate of amortization % 2006 2005 5. Moin ul Haq Mr.681 M/s Sadruddin Associates 30-June-06 Revaluation Surplus Valuer Date of Valuation Had there been no revaluation the carrying amount of land and building would have been Rs.437 985 1.550 85 3.681 million of these assets.125 375 450 155 360 450 238 275 275 160 13 10 8 9 425 450 55 390 500 250 85 (256) 4.153 1.906 15. Masood Ahmed Mr.782 737. Adnan Bhatti Mr. Adnan Bhatti Mr.300 – 3.108 – – – – – – – – – – – – – – – 225 – – 3. The carrying amount of these properties as at December 31.183 33.620 4.25 million or cost of less than Rs. Mohammad Iqbal Mr.254 441.57 million.683. 2006 AMORTISATION Balance Amortisation/ as at Jan Impairment 01.357 2.466 656 (810) 3.014 Cost Accumulated WDV depreciation Rupees in ‘000 557 679 363 609 723 828 602 602 365 48 60 63 61 858 619 524 1.400 205 3.2 The properties of the Bank were revalued on June 30.254 Revalued Amount Rupees in ‘000 Lease hold land Buildings 504. 2006 Dec 31.782 1.677 Mode of disposal Quotations Quotations Quotations Quotations Negotiation Negotiation Negotiation Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Quotations Name of purchaser Mr. Due to non-availability of breakup of land and buildings before revaluation.139 million.906 11. Mohammad Iqbal Mr.2. Iqbal Saleem Mr.100 205 308 11.11.372 12. Adnan Bhatti Mr.381 Sale Gain / proceeds loss 375 450 155 360 450 238 275 275 160 13 10 8 9 425 450 280 390 500 3.

624. BILLS PAYABLE In Pakistan Outside Pakistan 225.489 155.479 million (2005: Rs.587 13.438 114.502 million) 13.690 (28.481 128.322 – 225.714 714 5.714) 690.281) 135.709 421.152 – 266.1 & 13.339.0. DEFERRED TAX ASSETS Deferred tax debits arising in respect of Provision against advances Provision against other assets Mark-up in suspense account 2006 2005 Rupees in ‘000 142.161 (5.581 175. OTHER ASSETS Income / mark-up accrued in local currency 13.082 2. deposits.070 3.470 – 1.637 million (2005: Rs.880 54.000 – – 6. 175.3 365.714 1.322 15.639 103.1 This balance has been arrived at after adjusting mark-up in suspense accounts of Rs.662 266.470 1.624.176 31.339.100 11. 209.409 Deferred tax credits arising due to Accelerated tax depreciation (24. BORROWINGS In Pakistan Outside Pakistan 15.1 1.084) 131.2 This includes the mark-up accrued on related parties transaction amounting to Rs.Note 12.000 – – 5.2 Advances.295 (6.0.333 – – 26.152 5.451 163.750 15. advance rent and other prepayments Advance taxation Branch adjustment account Unrealized gain on forward foreign exchange contracts Others Less: provision held against other assets Other assets (net of provision) 13.662 – 1.3 Provision against other assets Opening balance Charge for the year Reversals Amount Written off Closing balance 14.447 13.480 million) 13.480 115.250 697.714 46 Annual Report 2006 mybank Limited .671 146.489 1.714) 415.

850 – 23.246 7.662 15.1 Particulars of borrowings with respect to currencies In local currency In foreign currencies 15.00% per annum (2005: 5.476.615 4.563.047.910 60.710 343. As per the terms of the agreement.Note 15.893 5.836 179.645.771 1.750 34. the Bank has granted the SBP the right to recover the outstanding amount from the Bank at the date of maturity by directly debiting the current account maintained with the SBP.000 (2005: USD 800.856.771 1. the Bank has granted the SBP the right to recover the outstanding amount from the Bank at the date of maturity by directly debiting the current account maintained with the SBP.765 Note 2006 2005 Rupees in ‘000 Annual Report 2006 mybank Limited 47 . The effective mark-up rate ranges from 6.141 841.122. 16. The effective mark-up rate is 5.891 47.450.2 Details of borrowings secured / unsecured Secured Borrowings from the State Bank of Pakistan Under export refinance scheme Under Long Term Finance Export Oriented Products Scheme (LTF-EOP) Unsecured Call borrowings Borrowing from financial institutions 2006 2005 Rupees in ‘000 1.20 %).292.470 15.50% (2005: 3.624.805 112. having maturities upto June 30.832.947 209. 15.291.771 497.5 – 60.755 1.000 – 2.226 2. DEPOSITS AND OTHER ACCOUNTS Customers Fixed deposits Savings deposits Non-remunerative Current Accounts Call deposits Margin Accounts Financial institutions Remunerative deposits Non-remunerative deposits 2.814 12.641 16.006.470 1.226 23.662 15.476.339.910 1.50%) payable on quarterly basis.00 % per annum payable on maturity (2005: 3.000.339.50% to 7.80 % to 4. These LTF-EOP have the maturity of 7 years and 6 months from the date of contract with the SBP.624.692 5.5 This represents foreign currency borrowings aggregating USD 1. 2007.4 The Bank has entered into agreement with the State Bank of Pakistan (SBP) for extending LTF-EOP to customers.000 19.563.891 450. As per the terms of the agreement.793 4.50% to 7.910 1.3 The Bank has entered into agreement with the State Bank of Pakistan (SBP) for extending export refinance to customers.560 60.00%) payable on quarterly basis.850 12.4 1.524.169.3 15.645.000 47. 15.419 200.000) carrying mark-up of 6.560 807.

900 19.544 124.31.903 4.046 4.821 464.420 6.123 1.000 18. ( 2005 : 28.669 308. SHARE CAPITAL 2006 2005 Rupees in ‘000 18.000 2. 18.332 – 1.025.039.000.715 Fully paid in cash Issued as bonus shares 3.732. of shares in ‘000 700.688 2.828 106.459 46.500.305 – 18.856.169.721 2.421 – – 720 342 42.1 This represents the excise duty payable on services provided by the Bank for the month of December 2006 under section 40A of Federal Excise Act 2005.000 250.283 1.729 64.613 6.1 The above includes deposits of related parties amounting to Rs.000 Ordinary shares of Rs.1 Others 221.1 2006 2005 Rupees in ‘000 12.656 5.1.226 16.10 each 7.211 190.147 During the year paid-up capital was raised through right issue offering 50 shares (2005: 35 shares) for every 100 shares held at face value of Rs.071 12.010. subscribed and paid up No.128 million.057.2 Issued.033 46. of shares in ‘000 303. 10 each.326 143.085.706 17.530 206.615 19.417 1.688 3. OTHER LIABILITIES Mark-up / return / interest payable in local currency Mark-up / return / interest payable in foreign currencies Accrued expenses Provision for taxation Dividends payable Branch adjustment account Unrealized loss on forward foreign exchange contracts Payable to defined contribution plan Excise duty Payable 17.1 Authorized capital 2006 2005 No.1 Particulars of deposits In local currency In foreign currencies 16. relating to special procedures for collection of excise duty. 48 Annual Report 2006 mybank Limited .1.611 2.669 205.325 million) 17.Note 16.572 201.

Annual Report 2006 mybank Limited 49 .1 2006 2005 Rupees in ‘000 1.681 million. SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS Surplus on revaluation of fixed assets Surplus on revaluation of fixed assets Less: Incremental depreciation charge for the year 19.447) 1.224.685 million issued in favor of Collector of Custom on behalf of MGM Corporation (a related party) expired on January 8.681 (18.782) (30.242.106 58.651 – – 2.896 367.067 – – 58. favouring i) Government ii) Banks and other financial institutions iii) Others 970.739 20.1 Direct credit substitutes i) Government ii) Banks and other financial institutions iii) Others 20.242.177 (57.183 – – 850.076 – 203.106 – 58.520.106 19. MGM has filed a suit against the said order and obtained a stay from the Honourable High Court of Sindh and the matter is subjudicated at present. 2004 against which Collector of Custom has lodged a claim with the Bank on June 16. 2006.259) (87. The revaluation has resulted in surplus on revaluation of fixed assets of Rs.Note 19.2 Transaction-related contingent liabilities Contingent liabilities in respect of guarantees given.167) 1.137. 2004.854 Guarantees include Rs 1.695 606. on the basis of current market value. 2006 2005 Rupees in ‘000 20 CONTINGENCIES AND COMMITMENTS 20.234 – – – Surplus / (deficit) on revaluation of available-for-sale securities Federal Government securities: Market Treasury Bills Term finance certificates Other Investments Mutual funds-units-listed National Investment Trust units (303) 1. 1.1 The Bank's properties were revalued by an independent professional valuer as on June 30.

and tax year 2003 and 2004 against creation of tax demand aggregating Rs. 2 to the Honourable High Court of Sindh. 3. In this regard a provision of Rs.3 Trade-related contingent liabilities Contingent liabilities in respect of letter of credits accepted. 2002-2003. 6 million (Note 13. 250 million was entered into with Speedway Fondmetall (Private) Limited (Speedway). The Bank started proceeding during the period to recover the loss on the deal by disposing off the mortgaged properties.106 million. so that the two suits are heard together in the apex Court. 20.217 million. 2001. While finalizing assessments for the tax years 2003. favouring i) Banks and other financial institutions 20. where the matter is pending disposal. 2004 and 2005. The deal was not honoured by Speedway on the due date and the contract was rolled over subject to receipt of Rs.5 Other Contingencies In the year 2004.086. However.2 against publication by which the mortgage properties were put to sale. Speedway filed third suit in the Banking Court No. In respect of assessment years 1999-2000 and 2002-2003. Speedway filed a suit against the Bank and obtained stay from Honorable High Court of Sindh against the sale of PIB's which was vacated by the High Court during the year 2005.360 1. the bank has preferred appeals before various appellate forums of Azad Jammu and Kashmir. intending to disallow certain deductions and raised a demand of Rs.2006 2005 Rupees in ‘000 20. 26 million. 5. and claim the loss on deal by taking legal recourse.3) has been kept in the financial statements as a matter of prudence against the claim receivable of Rs. as the management is confident about favorable outcome of the above matters. Consequent upon the failure by Speedway to honour the terms of the contract. regarding excessive assessments on account of profits relating to Azad Jammu and Kashmir branches for the assessment years 2000-2001. 2001-2002. In response. the taxation officer has issued notice u/s 122(5A) of the Income Tax Ordinance.994. The Bank has appealed before the Commissioner of Income Tax (Appeals). Management is confident about the favourable outcome of the case. the Bank served a final notice intimating to settle the deal within stipulated time otherwise the Bank will liquidate the deal. Speedway filed another suit and obtained stay from the court against the sale of the properties mortgaged with the Bank. where matter is pending disposal.397 million. 2001. The Bank has also filed recovery suit of the Speedway in the Honourable High Court of Sindh. forward purchase of Pakistan Investment Bonds (PIB's) with face value of Rs.50. 6 million and mortgage of properties.737 50 Annual Report 2006 mybank Limited . Subsequently the bank moved an application for transfer of the suit filed by the Speedway in Banking Court No. the bank has preferred appeal against various disallowances by tax department with tax impact of Rs.4 Taxation Return filed by the Bank for tax year 2006 (Financial year 2005) has been assessed under the self assessment scheme envisaged in section 120 of the Income Tax Ordinance. No provision has been made in the financial statements. Further.149. which was also dismissed as withdrawn by Speedway.

These being revocable commitments do not attract any significant penalty or expense if the facility is unilaterally withdrawn.Apr 13.6 Commitments in respect of forward exchange contracts Sale Purchase Principal Terms of Agreement Sale: Currencies USD USD EURO GBP Purchase: Currencies USD USD EURO GBP GBP Counter Parties Banks and financial institutions Customers Banks and financial institutions Banks and financial institutions Counter Parties Banks and financial institutions Customers Customers Banks and financial institutions Customers Maturity Jan 04. 3. 2007 Jan 05. 2007 Jan 12.7 Commitments in respect of sale and purchase of securities Purchased under re-sale agreements Forward sale of equity securities 20.326.581 Annual Report 2006 mybank Limited 51 . 2006 (2005: 1. 2007 .Apr 10.496 252. 2007 . 2007 Maturity Jan 04.028.196. 2007 Jan 05. 2007 .895 537. 2007 2006 2005 Rupees in ‘000 20.149 1. 2007 Jun 02.167 1.293. 2007 . 2007 . 2007 .535 billion as at Dec. 2007 Jan 04.Mar 26.8 Commitments to extent credit The Bank has made commitments to extend credits to its customers in the normal course of business that amounts to Rs 16.Mar 30. 31.348 151.Mar 10.Apr 13. 2007 Jan 04. 2007 Jan 12.Jun 18.783 billion).2006 2005 Rupees in ‘000 20. 2007 .758 370.785 1.

703 70. This balance has been arrived at after adjusting amortization of PIBs of Rs.228.331 865.810 639.207 149.646 1.843 3.760 17.000 21.375 million). Mark-up / Return / Interest earned a) On Loans and advances to: i) Customers ii) Financial institutions b) On Investments in: i) Held-for-trading securities ii) Available-for-sale securities iii) Held-to-maturity securities c) On Deposits with financial institutions d) On Securities purchased under resale agreements i) Govenment ii) Shares iii) CFS e) Call money lendings 21.024 million). OTHER INCOME Net profit on sale of fixed assests Recovery income Rent of lockers Miscellaneous 3.867 36.606 71.237 20.026.754 29.385 9.1 21.579 31.670 27. 13. Mark-up / Return / Interest expensed Deposits Securities sold under re-purchase agreements Other short term borrowings Borrowing from the State Bank of Pakistan 816. Gain on sale of securities Federal Government Securities Market Treasury Bills Shares-Listed Mutual Fund – 27.713 22.685.852 81.039 – – 184.570 23.243 322. 2006 2005 Rupees in ‘000 22.466 2.096 26.2 This includes mark-up earned on advances to associated undertakings of Rs.214 49.Note 21. 2.429 1.2 21.757 – 32.486 11.090 million (2005: Rs 1.430 1.522 22.049 6.415 million (2005: Rs 15.636 35.461 2.047 156.699 19.500 29.444 – – – 135.927 2.668 265.548 52 Annual Report 2006 mybank Limited .1 2006 2005 Rupees in ‘000 1.450 27.257 24.727 27.904 21.

085 4.692 1.219 1.920 23.070 1. insurance. allowances and other expens Rent.000 75 100 1.802 21.243 9.565 5.202 14.957 6.175 50.077 7.362 7. etc.023 27.441) 39 – 39 (63. taxes.258 587.915 75.268) (63.1 25.2 Auditors’ remuneration Audit fee Special certifications and sundry advisory services Out-of.118 – 68.452 21. ADMINISTRATIVE EXPENSES Salaries.585 73.318 1.087 130.922 7.596 21. OTHER CHARGES Penalties imposed by the State Bank of Pakistan Stock Exchange Listing Fee 20.1 This represents donation paid to President’s Earthquake Relief Fund 25. electricity.839 637 67.executive directors’ fees.144 10.175 26.798 23.565 10.579 1.728 1.460 1.3 25.172 38. allowances.Note 25.781 8.997 25.402) 1.2 11.827 (102.851 2. TAXATION For the year Current Deferred For the prior year(s) Current Deferred 126.463 15 18.658 2.175 74. Contribution to defined contribution plan Non. etc.2 11.pocket expenses 1.000 75 100 1.688 530.172 23. Legal and professional charges Communications Repairs and maintenance Donations Stationery and printing Advertisement and publicity Auditors’ remuneration Depreciation Amortisation Travelling and Conveyance Security Charges Others 2006 2005 Rupees in ‘000 259.175 Annual Report 2006 mybank Limited 53 .525 222.172 – – – 130.

212.888 261.132) (62. EARNINGS PER SHARE .Note 27.1 Relationship between tax expense and accounting profit Accounting profit for the year Tax rate Tax on accounting profit Tax effect on separate block of income Tax effect of permanent differences Tax effect of deductible temporary differences previously unrecognised Tax effect of items chargeable to tax at reduced rates Tax charge for the prior year Tax expense for the year 28.060 35% 218.8.647) – – 130.222. the Bank has contributed Rs.735 1.Rupees in thousand Weighted average number of ordinary shares (in thousand) Basic earnings per share .23 1.402) 492.276) (31.410.990.474 million ( 2005: Rs. STAFF STRENGTH 2006 Permanent Temporary / on contractual basis Total Staff Strength 916 53 969 31. During the year.398 404.Rupees 29.638) (59.122 (22.133 2005 Number 924 54 978 30. DEFINED CONTRIBUTION PLAN The Bank operates an approved contributory provident fund for 916 employees (2005: 924 employees) where contributions are made by the Bank and employees @ 8.089 3.815.89 274. 54 Annual Report 2006 mybank Limited .515) 39 (63. 7.BASIC AND DILUTED There is no diluted effect on the basic earnings per share of the Bank Profit for the year .172 210.141 1.226 1.052 1.120) (16. CASH AND CASH EQUIVALENTS Cash and Balance with treasury banks Balance with other banks 6 7 2006 2005 Rupees in ‘000 623.229 1.134) (30.118 million) in respect of this fund.250 223.848 38% 80.33 %) of the basic salary.33 % (2005: 8.071 (9.

410.533.662 12.089 4.152 1.800 1 Directors 2006 2005 Rupees in ‘000 637 – – – – – – – 637 7 – – – – – – – – – 7 Executives 2006 2005 34.887 2.720 13.294.649 2005 Fair value Book value Rupees in ‘000 Fair value Annual Report 2006 mybank Limited 55 .071.248 21.722 1.030.839 369.339.445 9.049.642 – – – 177 282 699 7.273 266.273 1. Executive means employees.089 4. other then the Chief Executive Officer and directors.533.662 12.735 1.233 1.169.942 Number of persons 1 2005 – 6.152 1.226 – – 231.381 175.844 14.222.624.318 24.381 175.950.736 9.360 848 475 1.343 15.856.266 225.301 3.248 21.503 3.226 – – 231.052 1.266 266.615 – – 123.030.32 COMPENSATION OF DIRECTORS AND EXECUTIVES President / Chief Exectutiive 2006 Fees – Managerial remuneration 6.052 1.470 19.467 622 3.537 13.169.294.961.405 Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Sub-ordinated loans Other liabilities 225.252.503 3.322 1.250.088 107.398 404.480 15.586.586.844 14.410.318 24.001 29.486.480 16.259 2.624.1 On-balance sheet financial instruments 2006 Book value Assets Cash balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Other assets 1.060.339.990.398 404.631 2.990.713 8 The Chief Executive and Executives are provided with free use of Bank’s maintained cars. 33 FAIR VALUE OF FINANCIAL INSTRUMENTS 33.263 Utilities – Medical 281 Conveyance 314 Others 183 8.220 13.839 369.615 – – 123.901 Contribution to defined contribution plan – Rent and house maintenance 1.157 71 7.250. whose basic salary exceeds five hundred thousand in a financial year.856.735 1.990.152 9.470 19.222.486.310 16.322 1.172.887 2.

874 105.496 252. Loans and advances are re-priced frequently on market rates.895 1.645 73.007 7.434 4.633 628.293.009 1.285.653 61.167 537.348 151.152 88.421 5.4.184 – – 1.758 1.833.149 537.157 5.262 – – 1.028.060 1.326.134 244.167 Investment in quoted shares and government securities are valued at market prices taken from Stock Exchange quotations and Reuters (PKRV) page.062 662.129.321.351.171 2. 34.232.003 323.581 370.256 2.941 122.722 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Trading & Retail Commercial Payment & Agency Assets Retail Others Sales Banking Banking Settlement Services Management Brokerage Rupees in ‘000 7.132 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 4.353 – – 859.758 1.307 9.543 13. Fair value of all other assets and liabilities including deposits and capital / reserves cannot be calculated with reasonable accuracy as active market does not exist for these instruments.43% 660.460 36.289 117.580 1.003 5.293.988 33.986 62.834 17.049.184 47.251 356.930 1.34% 0.48% 446.339.196.868 8.914 13.785 3.271 – – – 4.487 416.496 252.617 196.2 Off-balance sheet financial instruments Forward purchase of foreign exchange Forward sale of foreign exchange Purchase under re-sale agreements Forward sale of equity securities 1.2006 Book value 2005 Fair value Book value Fair value Rupees in ‘000 33.116.01% 2.191.37% 56 Annual Report 2006 mybank Limited .746.209. In management's opinion fair value of these instruments does not significantly differ from their carrying values.37% 2005 Total income Total expenses Net income (loss) Segment Assets (Gross) Segment Non Performing Loans Segment Provision Required Segment Liabilities Segment Return on net Assets (ROA) (%) 93.841 151. Segment Details with respect to Business Activities The segment analysis with respect to business activity is as follows:– Corporate Finance 2006 Total income Total expenses Net income Segment Assets (Gross) Segment Non Performing Loans Segment Provision Required Segment Liabilities Segment Return on net Assets (ROA) (%) 153.69% 0.196. The provision for impairment of advances has been accounted for in accordance with the Bank's accounting policy as stated in note 5.130.551.520 647 193.427 3.895 1.785 3.326.000 64.581 370. Fair value of investments in unquoted shares have been estimated using the net assets value based on latest available financial statements. Most of the deposits are short term in nature.68% 0.662 2.028.193 46. Fair value of loans and advances can not be determined with reasonable accuracy as there is no active market.367 342.632.348 151.149 1.

685 2.963 313. employee benefit plans.548 28.118 152 31 (145) 38 784 1.963 25.306 (1.542 440 735. and its directors and executive officers (including their associates).685 1.769) 2.811 (21.098) 54.866) 25.707 (21. major shareholders.679 1.325 (313.332) 20. Other than those transactions which are made under the terms of employment.746) 2.043 1. Advances for house building.477 43.265 18.340 39.210 24.340 10.000 5. deposits. issuance of letters of credit and guarantees.292 (732.474 9.404 64.817 – 1.375 502 – 95 – 58.511 (36.982 (15.422) 58. conveyance for personal use have also been provided to the staff and executives at the reduced rates in accordance with the employment and pay policy.210 Directors 2005 Associated Companies 2006 2005 Rupees in ‘000 Staff 2006 2005 Annual Report 2006 mybank Limited 57 .938) 152 2.005 – 8. Detail of transactions with related parties and balances with them as at the year ended were as follows: 2006 Deposits Deposits at the beginning of the year Deposits accepted during the year Deposits withdrawl during the period / year Deposits at the end of year Advances Advances at the beginning of the year Advances disbursed during the year Advances repaid during the year Advances at the end of year Letter of credits Letter of guarantees Mark-up earned Mark-up receivable Mark-up paid Commission earned Contribution to provident fund – – – – – – – – – – – – – – – – – – – – – – 14.509 – 705 – 7. RELATED PARTY TRANSACTIONS Related parties include associated undertakings.648) 14.964 5.077 – – 2.211 (10.090 637 – 56 – 7. major transactions with related parties comprise of loans and advances.35.369) 28.992 (34.964 – – 1.

298 – 2.085.490.030.849.898 2.147 156.442 2.524 433.084 2.691 2.220.25% .484 5.750 1.708.090 2.533.223 2.471 772.248.333 1.198 10.938 13.516 – 5.582.297 2.148 486.471 19.499.036.890 12.375.692.040 6.072 278.200 10.25% of Total Risk Weighted Assets Revaluation Reserve (upto 50%) Total Tier II Capital Eligible Tier III Capital Total Regulatory Capital Risk– Weighted Exposures (a) 3.148 772.Note 36.525.583 12.606.348 662.167 25. CAPITAL ADEQUACY 2006 2005 Rupees in ‘000 The risk weighted assets to capital ratio.036.392.814 2006 2005 Book Value Risk Adjusted Book Value Risk Adjusted Value Value Rupees in ‘000 Credit Risk Balance Sheet items:– Cash and other liquid Assets Money at call Investments Loans and Advances Fixed Assets Other Assets Off Balance Sheet items Loan Repayment Guarantees Purchase and Resale Agreements Performance Bonds etc Stand By Letters of Credit Outstanding Foreign Exchange Contracts Credit risk– weighted exposures Market Risk General market risk Specific market Risk Market risk-weighted exposures Total Risk-Weighted exposures Capital Adequacy Ratio [ (a) / (b) x 100) 58 Annual Report 2006 mybank Limited 3.840 568.625 8.293.694 2.183 – 610.519 16.183 1.488 839.225 670.141 4.726 16.534 571.643.332 257.917.503 3.836 18.287.301 (b) 23.815.332.884 5.491.225 822.057.567 – 2.170 849.103 12.245 29.545.153 6.409.660 889.721 254.941 2.760.928.651 22.918.649 588.133 116.066 2.887 2.865. calculated in accordance with the State Bank’s guidelines on capital adequacy was as follows: Regulatory Capital Base Tier I Capital Shareholders Capital/Assigned Capital Reserves Unappropriated profits (Net of Losses) Total Tier I Capital Tier II Capital Subordinated Debt (upto 50% of total Tier I Capital) General Provisions subject to 1.738 908.475 1.053 34.503 1.675 126.333 – 331.476 849.813 966.215.291 1.663 474.994.542 16.171 1.212.275 472.981.086 866.86% 5.377.220.869 2.220.693.533.850 1.052.197 3.374 – 4.103.

The aggregate limit for equity securities shall not at any time exceed the limit prescribed by the SBP.3 Market Risk Market Risk is the risk of loss in earnings and capital due to adverse changes in interest rates.Maximize earnings potential and opportunities leading to shareholder value creation.1 Risk Management The Bank's Risk Management Framework sets three broad risk management objectives: . 37. provides key support to the various risk committees and work closely with the business units.4 Equity position Risk Equity position Risk is the risk arising from taking long or short position. who reports to the Chief Executive. in the equities and all the equities and all instruments that exhibit market behavior similar to equities. ALCO reviews the portfolio on regular basis to ensure that market risk is within acceptable limits . Credit risk. Governance structures are in place to achieve effective independent monitoring and management of market risk as follows: . The Bank focuses on short-term trade related financing on a secured and selfliquidating basis.Independent Risk Management Division 37. 37. which encompasses comprehensive credit policy. At the Central Office.Focused and informed oversight by the board. all supported by appropriate internal control. which arises from lending activities that forms the Bank’s core business.Independent monitoring at Bank level by Risk Management Division . The Bank’s liquidity position is managed by the Assets and Liability Committee (ALCO). and accountability and responsibility of business management. stress testing and limit structure. A comprehensive market risk framework is used to support and assist the Board in its responsibility to oversee that market risks are understood and managed. An “early warning” procedure is also functioning which identifies loans showing early warning signals of becoming non-performing. . foreign exchange rate.5 Liquidity Risk Liquidity Risk is the potential for loss to an institution arising from either its inability to meet its obligations or to fund increase as they fall due without incurring unacceptable costs or loss. equity prices and market conditions.Independent assurance provided by internal audit The Risk Management Division is independent of the operational business units. Equity position risk is measured using mark to market.37. and . The Head of Risk Management Division. Risk Management Division monitors credit at portfolio level and reports to executive management and board risk management committee on a regular basis. chaired by CEO is responsible for approving and recommending credits.Investment and Treasury Division . Credit and Investment Committee. The Bank's risk management framework encapsulated in its design three lines of defense . in the trading book. RISK MANAGEMENT 37.Protect against unforeseen losses. independent Credit Sanctioning and Monitoring Division is responsible for continuing review and monitoring of borrowers’ account and effective compliance of Prudential Regulations.Ensure earning stability. approved counter party limits and governance structure.2 Credit Risk Credit risk is the risk that arises from the potential that an obligor is either unwilling to perform an obligation or its ability to perform such obligation is impaired resulting in economic loss to the bank. The committee monitors the maintenance of balance sheet liquidity ratios. depositors concentrations both in terms of the overall funding mix and avoidance of undue reliance on large individual depositors and liquidity contingency plans. 37. risk management and governance structures . Annual Report 2006 mybank Limited 59 .The Board Risk Management Committee . Credit risk is managed in terms of the Board-approved Credit Risk Management Framework.The Asset and Liability Committee (ALCO). is by far the most significant risk type.

15% 33.73% 0.015 1.00% 5.614 282.50% 6.893.808. 38.907 142.901 5.322 14.42% 0.71% 2. measured. Storage and Communication Financial Insurance Services Individuals Others 60 Annual Report 2006 mybank Limited .040.061 Percent 7% 93% 100% Percent 1.07% 7.650 1.226 2006 Deposits Rupees in ‘000 2.28% 39.02% 1.459.937 24.10% 2.00% 2. Deposits. SEGMENTAL INFORMATION Segmental Information is presented in respect of the class of business and geographical distribution of Advances.37.27% 0.304 – 904.52% 0.35% 8. Hunting and Fishing Mining and Quarrying Textile Chemical and Pharmaceuticals Cement Sugar Footwear and Leather garments Automobile and transportation equipment Electronics and electrical appliances Machinery and allied equipments Construction Power (electricity).969 19.00% 13.948 2.597 6.747 228. Forestry.83% 100% Agriculture.514.6 Operational Risk Operational Risk is the risk of loss resulting from inadequate or failed internal process.99% 1.571 350. Water.151 104. managed and monitored in a consistent manner.198 1.96% 6.88% 0.398.645.932 453.70% 9.566 3.770. management and monitoring of operational risk.12% 86. Gas.53% 0. 2006 38. Business management is responsible for the identification.401 816.96% 17.171 294.222.19% 100% Deposits Rupees in ‘000 292.341 780.770 336.654.409.770.743 – 452.563 804.523 38.750 140.44% 1.86% 8.65% 0.40% 8.38% 5.061 Percent 0.72% 0.75% 0.1 Segments by class of business Advances (Gross) Rupees in ‘000 192.062 1.579 19.20% 1.06% 4.00% 0.181 2.2 Segment by sector Advances (Gross) Rupees in ‘000 Public/ Government Private – 13.17% 100% Contingencies and Commitments Rupees in ‘000 – – 899.309 699.518 402.33% 0. Sanitary Wholesale and Retail Trade Exports / Imports Transport.73% 0.00% 1.78% 5.99% 1.523 13.373.15% 3. Central Operation Division coordinates with the respective business units for controlling their operational risk.668 209.293 368.008.169.137.88% 100% Contingencies and Commitments Rupees in ‘000 970.806 469.226 Percent 13.799.12% 0.80% 0.763 2.85% 0.901 51.48% 0.80% 11.474 11. people and system or from external events.511 – 4.92% 2.863 211.00% 30. Internal audit division provides assurance to the board of directors that the operational risk management framework is sound and that the policies and processes related to operational risk management are adhered to.975 – 4.39% 1.00% 6.000 – 375.027 6.523 Percent – 100% 100% Percent 1.73% 7.149.162 128.257 16.893.395 1.01% 2. Contingencies and Commitments.962 153.449 11.37% 0.608.169.463 22.179 14.559 13. The Bank's operational risk management framework has been developed to create an environment within which operational risk can be identified.403 569.893.242.380 1.90% 2.53% 0.97% 3.214 383.506 70.38% 0.373.502 1.739 13.28% 1.14% 15.957 20.00% 0.087 1.885 280.09% 4.

393 25.071 – – – – 10.4 Details of non-performing advances and specific provisions by sector Public/ Government Private – 1.379 413.237 Specific Provisions Held 10.594 – – – – 4. Sanitary Wholesale and Retail Trade Exports/Imports Transport.987 – – – 53.5 GEOGRAPHICAL SEGMENT ANALYSIS The Bank does not have operations outside Pakistan.237 1.089 24.570 179.251 – – 11.844 – 1.3 Details of non-performing advances and specific provisions by class of business segment 2006 Rupees in ‘000 Classified Advances Agriculture.379 2005 4.911 403.994 8.011.727 376.453 – 451.844 403.041 – – – – – 4. Gas.841 – – – 309.011. Storage and Communication Financial Insurance Services Individuals Others 68.274 Classified Advances 70.015 149.660 125.259 442.672 158.237 – 413.020 Specific Provisions Held 17.625 2. Hunting and Fishing Mining and Quarrying Textile Chemical and Pharmaceuticals Cement Sugar Footwear and Leather garments Automobile and transportation equipment Electronics and electrical appliances Construction Power (electricity).885 – – – – – 43.170 1.079 2.844 38.000 9.069 6.453 – 18. these financial statements represent operations of the Bank in Pakistan.031 10.131 6.313. Annual Report 2006 mybank Limited 61 .785 10. therefore.379 38.313.508 1. Water.810 – 388.011.903 7.313. Forestry.101 1.38.607 – – – 103.060 413.246 3.020 1.215 – – – 21.020 – 403.

255 21. The net open position is managed within the statutory limits. spot and forward transactions with the SBP and in the inter bank market.821.421 25.390 191 134 15.390 191 134 15. foreign placements with SBP and foreign currencies assets and liabilities. Currency Risk Assets 2006 Off-balance Liabilities sheet items Rupees in ‘000 Net foreign currency exposure 2.370 7.688 6.483.278. The bank’s foreign exchange exposure comprises of forward contracts.616) 6.335 458.366 163.753 37. 62 Annual Report 2006 mybank Limited .026 (122.457 – (23.421 (1.39.334) – – – – – – Currency risk arises where the value of financial instrument changes due to changes in foreign exchange rates. purchases of foreign bills.970.851 186 24.029.619 – 3.846 130.513.590 28.409 Pakistan Rupee United States Dollar Great Britain Pound Japanese Yen Euro UAE Dirham Canadian Dollar Singapore Dollar ACU Swiss Frank 23. foreign currencies cash in hand.625 6. as fixed by the SBP.995 172. Counter-parties limits are also fixed to limit risk concentration. In order to manage currency risk exposure the bank enters into ready.650 186 3. Appropriate segregation of duties exist between the front and back office functions while compliance with the net open position limit is independently monitored on an ongoing basis.149) 15.907 – – – 201 – 21.532 7. balances with banks abroad.

996 351.318 4.521.270.784 Purchase and resale agreements Forward sale of equity securities Off-balance sheet gap Total Yield/Interest Risk Sensitivity Gap Cumulative Yield/Interest Risk Sensitivity Gap Reconciliation with total assets: Assets as per above Deferred Tax Fixed Assets Other Assets 24.852) On-balance sheet gap Off-balance sheet financial instruments 9.721.496 252.76% 9.739.049 17.670 3.149 (51.610 12.757 (713.624.778 64.549.052 1.401 6.470 6.650.852) 6.291.887 2.701 4.732.990.417 342 42.493.225 321.533 716.519 5.585 90.051.322 1. The bank manages this risk by matching/re-pricing of assets and liabilities.536 90.480 21.115.996 6.151 3.318 25.085.226 231.91% 10.060.820 402.031 711.504.884 2.969 457.261.905 Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Other assets Liabilities 8.574 3.969.644 3.903 17.643 60.922 5. The bank is exposed to interest/mark-up rate risk as a result of mismatches or gaps in the amount of interest/mark-up based assets and liabilities that mature or re.821 21.511. The Assets and Liabilities Committee (ALCO) of the bank monitors and manages the interest rate risk with the objective of limiting the potential adverse effects on the profitability of the bank.028.387 6.598.579 12.006 647.405 4.401 5.031 3.000 1.283 619.660 843.263 667.865 185.322 5.760.496 252.405 131.166 3.496 252.640 64.089 4.996 64.283 6.060.550.418 3.905 459.846 Assets as per Balance Sheet Reconciliation with total liabilities: Liabilities as per above Provision for taxation Excise duty payable Others Annual Report 2006 mybank Limited Liabilities as per Balance Sheet 63 .006 20.248 5.611.149 388.266 2.536 6.213 11.804.757 607.35% 12.280.92% 24.839 369.021.227 2.387 2.439 1.961.903 118.971 377.996 1.283 647.446 3.286 3.080 136.550.639 - Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Other liabilities 118.917.456.220 13.248 389.000.628.636 (713.587 2.017 5.968 2.515 48.804.036.266 190.133 749.149 3. Mismatch of Interest Rate Sensitive Assets and Liabilities Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in the market interest rates.658.810.742.839) 6.028.470 239.176 369.169.084 75.645 5.917 10.772 6.283 90.996 225.470 19.176 165.263 26.75% 8.868 20.222.483.468 2.772 64. The bank is not excessively exposed to interest/mark-up rate risk as its assets and liabilities are re-priced frequently.40.028.139 2.262.67% 21.486.208 500.10% 9. Effective Yield/ Interest rate Total Rupees in ‘000 Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years 2006 Exposed to Yield/ Interest risk Above 10 Years Non-interest bearing financial instrument On-balance sheet financial instruments Assets 4.106.187 231.88% 4.250.price in a given period.796 90.718.534 50.812.630 3.121 1.481 388.030.839) 225.66% 3.250.964.090.659 (51.

760.804.438 500.209.933.911 1.084 131.483.581 2.270.677 7. the period in which these are assumed to mature have been taken as expected date of maturity.237.089 2.504. 2006.639 8.030.884 7. General These accounts have been prepared in accordance with the revised forms of annual financial statements of the banks issued by SBP through its BSD Circular No.961. 4 dated February 17.576 3.958 749.667 136.065.322 239.493.197 1.974 50.971 377.169 10.534 293.990.226 464.990.484 5.813 64.996 351.176 165.503 1.322 1.796 90.634 497.648 5.887 2.511.091 3.085.108 389.644 4.649 588.507 1.106.065.277 3.222. Iqbal Alimohamed Chairman Sohail Muzaffar Vice Chairman Danish Iqbal Director Muhammad Bilal Sheikh President & CEO .220 13.006 423.503 Upto 1 Month Over 1 to 3 Months Over 3 to 6 Months Over 6 Months to 1 Year Over 1 to 2 Years Over 2 to 3 Years Over 3 to 5 Years Over 5 to 10 Years Above 10 Years 40.089 4.266 1. 41. 42.634 2.610 144.387 393. 2007 by the Board of Directors of the Bank.036.486.263 146.602.169.439 118.320 223.740.643 60.996 1.208 365.446 3.903 17.164 549.1 Maturities of Assets and Liabilities Annual Report 2006 mybank Limited Assets Cash and balances with treasury banks Balances with other banks Lending to financial institutions Investments Advances Other assets Operating fixed assets Deferred tax assets Liabilities Bills payable Borrowings Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Other liabilities Deferred tax liabilities Net assets Share capital Reserves Unappropriated profit Surplus / (deficit) on revaluation of assets Where an asset or a liability does not have a contractual maturity date.807 875.903 188.865 576.231 388.070.660 903.828 21.031 4.000 1.701 4.266 718.115.137.283 607.536 718.812.051.645 48.052 722.658.052 1.468 2.819 647.587 26.225 131.839 690.470 19.624.785 533.549.227 378.166 3. Figures have been rounded-off to the nearest thousand Rupees.933.969 1.067 5.587 75.057 225.868.634 3.917 31.263.732.480 225.213 239. Date of Authorization for issue The financial statements were authorized for issue on February 23.421 457.006 647.721 254.846 5.176 20.021.449 11.322 3.64 2006 Total Rupees in ‘000 1.

Shah 16 Azeem Gul 17 Nazia Muhammad Aslam 18 Shahid Hafiz Khuaja A-122.886 4.276 3.713 13.Khan Road 6. Sector E-2 Hayatabad Peshawar Village Shah Baig Post Office Ibrahim Khan Dist Mardan Room No 10 / 10A Arkay Square Shahrah-e-Liaquat Karachi 2/19 C-1 Liaquatabad Karachi 15 Khalid Abid M.C.276 Hassan Manzoor S/o Manzoor Bhai 42101-6864879-5 B-235. Peshawar House No.E.313 1.313 1. Civic Center. Mohallah Sethyan.446 57 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 1.332 25. Block-C.440 49. Karachi Sr. C-1 Area Liaquatabad Karachi D-60 Block 8 Gulshan-e-Iqbal 19 Virgo International 20 Taurus Commodities 21 Owais Enterprises Annual Report 2006 mybank Limited 22 Subika Enterprises 65 .653 4.886 622 2.O.Annexure-I STATEMENT SHOWING WRITTEN-OFF LOANS OR ANY OTHER FINANCIAL RELIEF OF FIVE HUNDRED THOUSAND RUPEES OR ABOVE PROVIDED DURING THE YEAR ENDED DECEMBER 31.H.029 71.written financial Off off relief - Total 1 Universal Plastic Industries Muno Yousuf 135-55-581735 30.# Interest / Mark-up 4.Moti Bazaar Nawabshah H.446 57 89 89 89 89 89 89 89 89 89 89 89 89 89 89 89 1.554 744 744 744 744 744 744 744 744 744 744 744 744 744 744 744 3.No D.460 3.083 30.805 5.481 1.T Colony Queens Road Tower Karachi Sarhad Ciggrate Industries Nawab Kazzi District Maradan R-135 Pak Kausar Town Kokhrapar Maolir Karachi 74 M Block 6 P. North Nazimabad.No A/25.562 2 42301-1919397-3 129-80-621077 42301-2851841-5 130-43-061866 225-54-042479 516-24-155001 502-48-012310 470-33-158322 136-63-002635 128-90-086545 501-59-396701 501-39-230670 510-53-046504 501-59-396701 42101-13510596-2 502-88-20117 Knit Knot (Pvt) Ltd 3 Al Aslam International 4 S/o Master Hussain S/o Mir Zaman Khan S/o Shah Gilani S/o Charag Ali S/o Fazal Rab S/o Allah Bux Khan Palkio S/o Shaikh Muhammad Yunus S/o Abdul Waheed S/o Gul-Rab S/o Sanaullah S/o Syed Ezad Mukhtar Shah S/o Gul-Rab S/o Muhammad Aslam S/o Abdul Hafeez Khuaja Sultan Muhammad Hafeezullah Khan Niazi S/o Zafar Khan M.939 2.K Chandni House.42. Chowk Yadgar.481 1.479 Others Total Name of the borrower ame of the borrower with N Father's name Address Outstanding liabilities Principal Mark-up Other Written .410 7. Azam Mian S/o Hazrat Gull 5 Sartaj Hussain 6 Haider Zaman Khan 7 Syed Riffat Shah Gilani 8 Riasat Ali House No.654 8. Lane 24.134 3. block C-3 Haroon Royal City Phase III Gulistan-e-Johur Karachi H.554 833 833 833 833 833 833 833 833 833 833 833 833 833 833 833 4. 2006 Amount in thousand CNIC No. Mangan District Mardan H. 41.054 679 622 1. Dak Khana.153 62.No 506 Street No 15.410 7. Garden Town Lahore 60 / 11. 3092. Aslam Mian S/o M. Khayaban-eBadban DHA Phase VII Khi Mohalla Sherdil Khan P.60 T.332 679 1.S Karachi 9 Ahed Rab 10 Muhammad Siddiq Palkio 11 Roman Khalid Shaikh 12 Asad Khan 13 Rab International 14 Muhammad Aslam C-455 Nazimabad No 3 Karachi M. Principal 25.No U / 55 Sector G Nazimabad Karachi H.054 744 744 744 744 744 744 744 744 744 744 744 744 744 744 744 3. M.T.713 13.134 3.479 833 833 833 833 833 833 833 833 833 833 833 833 833 833 833 4.805 340 2.N.341 Shaikh Waseem Riaz 502-81-258822 Imperial Hotel Building.286 6.286 1.316 58.

436 7.768 3.057 434 2.323 5.569 3.001 7.929 1.116 3.113 10.016 97 1.net of provision Investments Deposits – Remunerative – Non .328 508 93 601 8.533 4.937 1.298 1.595 3.092 11.remunerative 14168 5.961 2.535 4.016 76 1.524 160 1.444 3.219 9.845 3.002 630 661 623 413 211 117 87 143 6 75 25 44 10 66 Annual Report 2006 mybank Limited .388 6.SIX YEARS FINANCIAL SUMMARY 2006 OPERATIONAL RESULTS Total income – Net income / interest – Commission income – Other operating income 820 115 337 703 68 181 411 45 53 394 41 82 203 98 156 288 44 22 2005 2004 2003 (Rupees in million) 2002 2001 Operating expenses – Administrative expenses 612 539 403 374 382 310 Profit / (loss) – Profit before tax and provision against NPLs – Profit before taxation BALANCE SHEET Shareholders’ equity – Paid-up capital – Reserve Total Equity Total assets Advances .684 13.491 17.086 843 3.549 13.294 3.253 1.853 1.929 26.759 5.245 1.487 2.993 3.161 4.

Danish Iqbal Mr. Afzal Ghani (Director) was co-opted in his place in August.President & CEO resigned from his office in 26th April. Mr. Iqbal Ebrahim Mr. Afzal Ghani • • Meetings Held 8 8 8 8 8 8 6 5 3 2 Meetings Attended 8 7 6 5 7 8 2 5 3 2 Mr. Zahid Saeed Mr. Muhammad Humayun Nabi Jan(Director) resigned from the Board of Directors and Mr. Muhammad Azimuddin. Iqbal Alimohamed Mr.NUMBER OF BOARD MEETINGS HELD DURING THE YEAR AND ATTTENDANCE BY EACH DIRECTOR AS REQUIRED UNDER CLAUSE XIX (H) OF THE CODE OF CORPORATE GOVERNANCE Name of the Directors / President Mr.after that Mr. 2006 in the 97th meeting of the Board of Directors. Mirza Ghulam Mjutaba Mr.Bilal Sheikh Mr. 2006 and completed his notice period. Muhammad Azimuddin Mr. Annual Report 2006 mybank Limited 67 . Muhammad Bilal Sheikh was designated as the new President & CEO in the 97th Meeting of Board of Directors. Sohail Muzaffar Mr. Muhammad Humayun Nabi Jan Mr. M.

B) C) Mr. Sohail Muzaffar Mr. Sulieman Ahmed Said Al-Houqani 34. Director 49. 7. Mr. Insurance Companies Joint Stock Companies Financial Institutions.976.000 215 – – D) Others 1. 3.677. Director Mr. 6.PATTERN OF SHAREHOLDINGS ( UNDER CLAUSE XIX (I) OF THE CODE OF CORPORATE GOVERNANCE ) AS AT DECEMBER 31. of Shares Acquired/Purchased 1. Sohail Muzaffar.664 2. Director Mr.57 0.000 7. 2. 3.115 – 2.036 1.190.920. 2006 A) Directors 1.207 900 – % held 46.05 – – 9.822 % 11. (Other than sponsors and Directors) Shares Held 1.962. 2.320 4. Mr.490. Mirza Ghulam Mujtaba Mr.511 3.250 69. Company Secretary and their spouse and minor children are given as under: No.96 – 22.000 500 Remarks Received gift by his son F) Shareholders holding ten percent and above.518 30. 4. Investment Corporation of Pakistan National Bank of Pakistan 1. Afzal Ghani. CFO. 3.201 17. Iqbal Ebrahim Mr. Zahid Saeed Mr. Afzal Ghani Shares held 143. NBFC Charitable Trust Individuals 24.971.68 E) Shares traded by Directors.65 5.24 68 Annual Report 2006 mybank Limited . 5.901 147. Iqbal Alimohamed.78 – – Directors’ Spouses and Minor Children NIT and ICP 1. Danish Iqbal Mr.539 14. Iqbal Alimohamed Mr.67 0. 4. 5. CEO. 2. 2.380.

703.775.23% 0.27% 0.000 335.000 100.14% 0.95% 34.001 145.000 445.000 5.705.800.000 1.000 160.000 1.000 2.001 25.700 115.775 700.000 350.000 959.001 50.001 220.024 841.900.000 20.000 70.117 272.701 7.001 330.000 110.13% 0.862.08% 0.18% 2.000 220.00% 100.001 5.492 386.000 234.000 1.380.14% 0.50% 0.58% 0.22% 11.001 100.615 13.491.36% 0.490.567 153.001 135.495.03% 0.00% 100 500 1.001 55.000 1.490.000 180.001 840.486.250 247.05% 0.000 1.000 176.001 85.125.001 20.085 5.001 5.000 120.000 2.074.001 30.000 205.001 7.633.000 55.000 130.875 99.004 Having shares From 1 101 501 1.247 212.113.165.669 Shares held To 243.001 710.41% 5.800.000 1.918.000 7.000 30.740.000 715.200 278.04% 0.700.001 125.775.000 16.647 434.000 155.205.000 50.166.892 259.001 555.32% 0.235 1.000.000.001 6.750 130.687 442.884 1.748 489.169 247.11% 0.001 830.344 1.490.08% 0.PATTERN OF SHARE HOLDING AS AT DECEMBER 31.31% 0.540.001 1.000 600.490.42% 0.210.000 13.000 150.500 395.10% 0.001 297.19% 0.000 700.001 16.614 2.300.938 87.07% 0.951.000 1.875.385.995.001 65.028 881 131 45 24 22 10 3 13 5 5 6 2 4 1 3 1 1 4 4 1 2 1 1 3 1 2 1 3 1 1 1 1 1 1 2 1 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 10.000 25.881.001 4.001 175.13% 0.885.001 60.001 365.955.393 316.630.400 1.001 1.001 40.210.001 35.13% 0.950.000 7.495.001 2.001 95.08% 0.001 2.000 355.001 195.750 1.94% 2.001 155.14% 0.08% 0.000 260.070.001 350.000 10.000 65.860.00 308.90% 1.766 2.000 6.274 7.000 960.212.000 17.000 4.00% 0.000 370. 2006 Number of shareholders 5.37% 5.07% 0.500 1.001 13.001 10.905.000 60.000 34.000 1.540.36% 1.04% 0.001 1.000 560.598 17.001 105.07% 0.000 1.03% 0.70% 0.001 15.000 2.001 695.485.001 150.000 136.001 34.44% 2.000 450.000 835.29% 0.000 75.001 440.000 205.001 17.250 416.750 4.93% 1.075.001 45.000 36.351 108.08% 0.000 95.06% 0.001 1.215.09% 0.356.535.17% 0.000 105.62% 0.52% 2.04% 0.000 845.745.780.00 Annual Report 2006 mybank Limited 69 .07% 0.000 104.411 2.67% 0.09% 0.000 225.000 35.000 45.001 1.001 200.23% 0.272 580.27% 0.160 896.230 442.910.000 40.000 15.500 94.914.829 67.207.000 6.795.535.001 955.24% 0.001 2.500 833.001 7.706 988.36% 0.170.62% 0.58% 4.880.694 516.901 34.609 16.001 255.707 305.850 6.000 335.000 200.325 5.000 713.741.972 36.000 5.001 70.001 36.096 104.03% 0.904.48% 0.572.001 90.67% 11.02% 0.39% 0.001 7.635.03% 0.031 Percentage 0.494.880.250 733.001 5.001 104.865.001 1.217 7.535.000 280.000 90.643 1.000 7.001 1.10% 0.16% 0.001 115.120.877.001 275.543 2.000 140.19% 0.125.001 445.915.995.380.000 1.11% 0.530 1.540.262 216.

Karachi. Al-Abbas Centre.com cmk@mybankltd. Jinnah Road. Karachi. Chundrigar Road.I.com rolhr@mybankltd.OFFICES / BRANCHES NETWORK OFFICES S. Pearl Heaven Apartments.com clf@mybankltd. Faisalabad. Off: M. Unit # 7.com sad@mybankltd. Paper Market. Khayaban-e-Roomi. Khayaban-e-Roomi.III Lahore. P. Abdullah Haroon Road. C-51. Aminpur Bazar. Karachi. Altaf Hussain Road.com jbk@mybankltd. 18-19. Near KFC Tariq Road. 71-B.. Liberty Market. Karachi. Al-Shafi Building. Latifabad # 7. City Code 021 021 021 021 021 021 021 021 021 021 021 021 Telephone No. Pearl Heaven Apartments. Bank Square.com nnk@mybankltd. Saddar.H. Karachi. 2621202 E-mail Addresses nck@mybankltd.S.com rokhia@mybankltd. Opp: State Bank of Pakistan. 1 2 3 4 5 6 7 8 9 Name Head Office (Registered Office) Central Office Regional Office Karachi Regional Office Lahore Regional Office Islamabad N. Almas Square. Main University Road. Clifton. Ram Bharti Street. Block 12/A. Clifton.com gik@mybankltd. Block C/2.com pmk@mybankltd.com bhk@mybankltd.com tmk@mybankltd. Gulshan-e-Iqbal. 2620231-33 Fax No. Siddique Wahab Road.com 2771515-16-18 2771517 2437991-3 2400790 2424177-78 2766477 2766755 5373231 5867651 5872647 2732729 2766995 4987688 4987739-40 2639671-2 4556486 4556682 5685269 5685393 5685940 6628931 6629145 2437994 2424175 2766487 5867647 2733214 4987689 2639670 4555478 5683991 6629144 70 Annual Report 2006 mybank Limited . 1 2 3 4 5 6 7 8 9 10 11 12 Name KARACHI New Challi Branch Plaza Quarters Branch Jodia Bazar Branch Cloth Market Branch North Napier Road Branch Clifton Branch Timber Market Branch Gulshan-e-Iqbal Branch Paper Market Branch Tariq Road Branch Abdullah Haroon Road Branch Barkat-e-Hyderi Branch Address Zia Plaza. Karachi. New Challi. North Napier Road.C. Block-5.com UAN 2433623 111-692-265 2444197 5824381-2 5763910 5750036 2871011 2875066 2875023 2626783 214170 214778 238431 868297 2837028-29 5824383 5760757 2871012 2611363 223978 868298 2825056 BRANCHES S. Block-5.W.F.E. Jinnah Road. Saleh Muhammad Street. Quetta 10th Floor.com trk@mybankltd. Islamabad. Noman Street. Karachi. Quetta City Code 081 021 021 042 051 0412 0554 0223 081 Telephone No. Karachi.com pqk@mybankltd. Block-G North Nazimabad. 2827057 Fax No. Karachi.com roisb@mybankltd. Business & Finance Centre. 222-Alam Market. Jinnah Road. Karachi.com jrq@mybankltd. 2825065 E-mail Addresses jrq@mybankltd. I.com zofsd@mybankltd.com finance@mybankltd.A.com hyd@mybankltd. Hyderabad Regal Chowk. Karachi. 20-Al-Asghar Plaza. Karachi. Ismail Trade Centre. 282/3. B-44. Gulberg . 5/D. Gujranwala. Karachi. Blue Area. Central Commercial Area.com zoguj@mybankltd. No.P Zone Aminpur Bazar Branch Gujranwala Zone Bank Square Bazar Branch Area Office Hyderabad Latifabad Branch Area Office Quetta Jinnah Road Branch Address Regal Chowk. Karachi. No. Shahrah-e-Liaquat.

55-C. 26/C. Jinnah Road. Bahadur Shah Centre. 68 & 69 1st Floor. Plaza High Street Shaiwal. Peshawar City.A.E.I. B/9-B/3. Commercial Zone. Karachi. Opp. Business Avenue. 6314817 6321387 4386417-18 2768547 2768559 5387809 5396263 Fax No. Badami Bagh.com isd@mybankltd. Toyota Motors Main Korangi Road.com bsk@mybankltd.com 2415974. Azam Cloth Market. Quetta. P. Near Clock Tower. Shahrah-e-Faisal. 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Name Water Pump Branch Shahrah-e-Faisal Branch Bahadur Shah Centre Branch Defence Branch I. 3-A. 5-Business & Finance Centre.E Branch Stock Exchange Branch LAHORE DHA Lahore Branch (Formerly Sqa) Badami Bagh Branch Shah Alam Gate Branch Liberty Market Branch Azam Cloth Market Branch Montgomery Road Branch ISLAMABAD Blue Area Branch Bharah Koh Branch RAWALPINDI Bank Road Branch Raja Bazar Branch QUETTA Jinnah Road Branch Liaquat Bazar Branch PESHAWAR Arbab Road Branch Chowk Yadgar Branch HYDERABAD Latifabad Branch SUKKUR Marich Bazar Branch Address Lateef Square.com 2274001-2 2823204. Federal ‘B’ Area. Karachi.com pwr@mybankltd.com iic@mybankltd. Lahore. Islamabad. Lahore.I. Peshawar Cantt.C. Block-6. 0233 040 874518 4221615 4229247 862018 4460960 mks@mybankltd. Block-16. Karachi.T. S. Chowk Yadgar.. Room No. Unit # 7. Latifabad # 7. Marich Bazar.S.com rbp@mybankltd.A. Abdul Karim Road. 2438212 2472176.com site@mybankltd.com dha@mybankltd. Saddar Bazar. Liberty Market. Jinnah Road.com bbl@mybankltd. Arbab Road. 5/D. D. Ainuddin Street. Stock Exchange Building Stock Exchange Road. Sukkur.com hyd@mybankltd. 2875066 2274276 2872913 2231344 5523840-41 5534173 5557244 2837028-29 2837300-1 5270463 5275915 5250466 5250477 868297 624316 2231345 5523837 5559544 2825065 2837302 5274251 5250488 868298 624317 MIRPURKHAS Shaheed-e-Millat Road Branch SAHIWAL High Street Branch Shaheed-e-Millat Road. Rawalpindi.S. Mirpurkhas. Urdu Bazar. Karachi. 558/B-1.E. Off: M. Phase-II .com suk@mybankltd. dhalhr@mybankltd.com swl@mybankltd. Peshawar.. Rawalpindi Cantt. Opp: State Bank of Pakistan.H.I.H. 6314848 4531819 2765083 5387810 E-mail Addresses wpk@mybankltd. Lahore.com acm@mybankltd.com sag@mybankltd. 2471796 2438218 2473656.com lbq@mybankltd. Tehsil / District Islamabad.com lml@mybankltd. Raja Bazar. Chundrigar Road Branch S. 12-A. 2437593 2586801-4 2462539-42 5692580 5692581 7724583 7720382 7705036 7630616 7670250 7663090 5717273 5763308-9 7667297 7651374 6364522 6364532 2586806 2462550 5692579 7730867 7663488 5763310 7662026 6364542 159-Y. Hyderabad.com kse@mybankltd. Blue Area.T. Gulberg. Muree Road. Near Metro Chowrangi.H. Area.com cyp@mybankltd..com mtg@mybankltd.A. Lahore Cantt. Lahore. No. Quetta. Shah Alam Gate.com sfk@mybankltd. 20-Al Asghar Plaza. Karachi. Peshawar. Regal Chowk.com rwp@mybankltd.com jrq@mybankltd. 203-Grain Market. Karachi City Code 021 021 021 021 021 021 021 042 042 042 042 042 042 051 051 051 051 081 081 091 0915 0223 0715 Telephone No.com bkh@mybankltd.com Annual Report 2006 mybank Limited 71 . Lahore.Block D. Karachi. F-1208. Navid.

com crg@mybankltd. Faisalabad. Railway Road. Turbat. G. Gujranwala. Kutchery Road. Near Pul Qatal Gahri.S. Ravi Road. Sargodha. Opp. Azad Kashmir. Near Small Industrial Estate Gate.T.com mul@mybankltd. Dadyal. Hussain Agahi Road. Kasur. 23/A. Rahimyar Khan. Bank Square. Main Bazar. Azad Kashmir.com mak@mybankltd.com fsd@mybankltd.com qsr@mybankltd.T. Road Gujrat 2576. Sialkot.com SARGODHA 38 Kutchery Bazar Branch 39 OKARA Ravi Road Branch FAISALABAD 40 Aminpur Bazar Branch GUJRANWALA 41 Bank Square Bazar Branch SIALKOT 42 Railway Road Branch GUJRAT 43 G. 722913 528755 525355 2634705. City Code 0483 0442 041 0554 0524 053 0614 0492 09378 06858 0852 058610 058630 Telephone No. Multan. Mardan.com ryk@mybankltd. Road Gujrat (formerly Circular Road ) MULTAN 44 Hussain Agahi Road Branch 45 46 KASUR Kutchery Road Kasur MARDAN Bank Road Branch RAHIMYAR KHAN 47 Rahimyar Khan Branch 48 TURBAT Main Bazar Branch AZAD JAMMU & 49 KASHMIR Nangi Chowk Branch 50 Dadyal Branch 72 Annual Report 2006 mybank Limited . Name Address 36-Block-5. Kutchery Bazar. 2626783 214170 214778 238431 582231 586507 3524640 3524447 785014 583168 583268 721993 65341 83876 413874 44550 42475 Fax No.com guj@mybankltd. MY Guest House. Okara. 722914 525356 2611363 223978 582232 3527108 543794 721994 65342 76776 414048 44522 42475 E-mail Addresses sgd@mybankltd. Sethi Plaza. Bank Road.com dad@mybankltd. Shahi Road. Maqbool Butt Shaheed Chowk. No.com okr@mybankltd.com turb@mybankltd.com mrd@mybankltd. Mirpur. Nangi Chowk. Aminpur Bazar.com skt@mybankltd.

In case of corporate entity.______________________________________________________ hereby appoint Mr. The instrument appointing a proxy should be signed by the member(s) or by his / her Attorney. speak and vote in place of the member appointed him at the meeting. / CDC Account and Participant’s ID No.00 Revenue Stamp . CDC account holder or sub-account holder appointing a proxy should furnish attested copies of his / her own as well as the proxy’s CNIC / Passport with the proxy form. must be deposited at the Bank’s Registered Office at mybank Building. 2007 and at any adjournment there-of. Witness_____________________________ Signature____________________________ CNIC No. (Signature should agree with the specimen signature registered with the Bank) Member's Signature on Rs. Quetta not less than 48 hours before the time of holding the meeting. its common seal should be affixed to the instrument. duly authorized in writing. The proxy shall also produce his / her original CNIC or passport at the time of meeting. The Proxy Form duly completed. The proxy shall have the right to attend. A member entitled to attend and vote at the Annual General Meeting of the Bank may appoint another member as his / her proxy to attend and vote instead of him / her. 3.5. the Board of Directors’ resolution / power of attorney with specimen signature shall be submitted along with proxy form. Jinnah Road. As witness my / our hand this ________________________________ day of __________________________2007 1.FORM OF PROXY I / We_________________________________________of__________________________________________________ being member of mybank Limited and holding ______________________________________ordinary shares are per Register Folio No.___________________________ Address_____________________________ 2. Witness_____________________________ Signature____________________________ CNIC No. Regal Chowk.____________________________________ of ________________________________or failing him / her________________________________________________ of _________________________________as my / our Proxy in my / our absence to attend and vote for me / us and on my / our behalf at the Annual General Meeting of the Bank to be held on March 30.___________________________ Address_____________________________ NOTES: 1./Miss./Mrs. If the member is a Corporation. 4. 2.

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