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Table of Contents

Corporate Information ..................................................3 Directors’ Report ..........................................................5 Statement of Financial Position .....................................6 Profit and Loss Account ................................................7 Statement of Comprehensive Income ...........................8 Cash Flow Statement ....................................................9 Statement of Changes in Equity....................................10 Notes to the Financial Statements ................................11

Consolidated Financial Statements Director’s Report .........................................................20 Consolidated Statement of Financial Position ..............21 Consolidated Profit and Loss Account..........................22

QUARTERLY REPORT 2011

Statement of Comprehensive Income ..........................23 Consolidated Cash Flow Statement..............................24 Consolidated Statement of Changes in Equity ..............25 Notes to the Consolidated Financial Statements...........26

01

Ali Raza Siddiqui Chairman Mr. Ahmed Goolam Mahomed Randeree Member Mr. Hisham Hammoud Member Mr. Ali Raza Siddiqui Mr. Bilgrami Member Company Secretary Syed Shah Sajid Hussain Auditors A. Mohamed Amiri Chairman Chief Executive Officer Chairman Member Member & Sharia'h Adviser Chairman Member Member Chairman Member Member Member Chairman Member Member QUARTERLY REPORT 2011 Human Resource & Compensation Committee Mr. Mohamed Amiri Mr. Hasan A. Hasan A. Ahmed Goolam Mahomed Randeree Mr. Hasan A. Ahmed Goolam Mahomed Randeree Mr. Shabir Ahmed Randeree Executive Committee Chief Justice (Retd.) Muhammad Taqi Usmani Professor Dr. Hasan A. Bilgrami Mr. Ahmed Goolam Mahomed Randeree Mr. Bilgrami Mr. Ferguson & Co.) Mahboob Ahmed Mr. F.CORPORATE INFORMATION Board of Directors Chief Justice (Retd. Chartered Accountants Legal Adviser Haidermota & Co. Shabir Ahmed Randeree Sharia'h Supervisory Board Justice (Retd. Barrister at Law 03 .) Mahboob Ahmed Mr. Hisham Hammoud Mr. Hisham Hammoud Mr. Fazlur Rahman Mufti Irshad Ahmad Aijaz Audit Committee Mr. Hisham Hammoud Risk Management Committee Mr. Ali Raza Siddiqui Mr. Bilgrami Mr.

Muhammad Furqan Mr. off Shahra-e-Quaideen.E. Compliance Head. 241-C. Muhammad Shoaib Khan Mr. Muhammad Imran Mr. Operations Chief Executive Officer Head. Marine Drive.com. Dolmen City.pk .pk Head.com. Finance QUARTERLY REPORT 2011 04 Share Registrar Technology Trade (Private) Limited.bankislami. Block -4.Management (in alphabetical order) Mr. Dagia House. P. Phone: (92-21) 111-247(BIP)-111 Fax: (92-21) 35378373 Email: info@bankislami. Administration and General Service Head. Hasan A. Farooq Anwar Mr. Risk Management Head. Human Resources Head. Ahmed Mustafa Mr. Khawaja Ehrar ul Hassan Mr. Executive Tower. Risk Policy & Analytics Head. Treasury & Financial Institutions Head. Arsalan Vohra Mr. Consumer & Retail Banking Head. Corporate Finance Head. Asad Alim Mr. Information Systems Head.S. Syed Akhtar Ausaf Mr.H. Karachi. Phone: (92-21) 34387960-61 Fax: (92-21) 34391318 Website www. Arshad Wahab Zuberi Mr. Sheba Matin Khan Mr. Kazmi Mr. Credit Administration Head. Branch Operations Head. Syed Mujtaba H. Karachi. Rehan Shuja Zaidi Mr. Trade Finance Head. Block-2. Shamshad Ahmed Ms. Product Development Head. Bilgrami Mr. Clifton. Muhammad Faisal Shaikh Mr. Syed Shah Sajid Hussain Registered Office 11th Floor. Internal Audit Head.C.

50% 0 Basic EPS (Rupees) 589. 2011 0. an established retail franchise and a brand which is well recognized. I am pleased to present the financial results of the first quarter of 2011. we are hopeful of achieving our targets inshallah. guidance as well as understanding. low operating cost. Bilgrami Chief Executive Officer April 27. as stated in the annual report of 2010. 2010 (0. 2011 Total Deposits Total Assets Net Financing Total Investments Shareholders Equity Branches 40. 816 102 March 31. Finally.65% -3. 732 4. 198 45.19% 1. 2010 38. 036 16. 2011 05 . There are no plans to expand the branch net work.093 December 31. We also completed the conversion of the mortgage portfolio of citibank during the quarter. The Bank has been assigned a long term entity rating of 'A' and short term rating of 'A1' by Pakistan Credit Rating Agency Limited (PACRA). Also in the plans are to liquidate some of the real estates which the Bank feels may not be needed in near future. 504 4. we are expecting to report a healthy profit for the year with a cleaner book. The CAR of Bank was in excess of 19%.DIRECTORS' REPORT On behalf of the Board. continued to focus on leveraging its existing network.5% The Bank.019) Change (%) 5. Following are the highlights: (Rs in millions) March 31.77% 20. competitive cost of funds. 670 13. 766 102 March 31. 041 16. we would like to place on record our appreciation to State Bank of Pakistan for continued support. The focus during the year shall be to increase deposit base by approximately 36% with a similar increase in investments as well as advances. 108 47. On behalf of the Board QUARTERLY REPORT 2011 Hasan A.00% 5. 581 16. Despite challenging environment. Given our network.

269.617 550.279.148 569.765.257.977 40. December 31.317 4.132 16.004 32.108.478.070.339 388.667.320 1.035.228 16.453 42.553 4.483 1.INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31.029 5.518 4.net of tax 7 849.815.132 13.996.416 1.000 38.198.386 4. 2011 March 31.681 45.183 4.679 9.Rupees in `000 ------2.670.035.386 CONTINGENCIES AND COMMITMENTS 11 The annexed notes from 1 to 15 form an integral part of these financial statements.020 353.783.124 32.325 16.732.581.382 4.041.513.766.629 47.279. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 06 .063 3.766.815.504.679 19.386 8 QUARTERLY REPORT 2011 9 5.734.134 (515.510 5.622 4.125 2.579 434.000 40.703 ASSETS Cash and balances with treasury banks Balances with other banks Due from financial institutions Investments Financings Operating fixed assets Deferred tax assets Other assets 5 6 LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities NET ASSETS REPRESENTED BY Share capital Reserves Accumulated loss Surplus on revaluation of assets .310 (554.985) 4. 2011 2010 (Audited) Note (Unaudited) ------.689) 4.046.510 563.680 402.154.066.

038 49.335 563.824) (564. investments and placements earned Return on deposits and other dues expensed Net spread earned Provision/(Reversal) against non-performing financings Provision for diminution in the value of investments Bad debts written off directly Net spread after provisions OTHER INCOME Fee.208. March 31. 2010 2011 (Restated) Note ------.Rupees in `000 ------11 1.813 570.745 8.113) (0.506 38.480 (5.934 30.093 801.INTERIM CONDENSED PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE QUARTER ENDED MARCH 31. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 07 .120 (554.023 602.523 5.985) (9. commission and brokerage income Dividend income Income from dealing in foreign currencies Capital gain on sale of securities Unrealized gain/(loss) on revaluation of investments classified as held-for-trading Other income Total other income OTHER EXPENSES Administrative expenses Other provisions / write-offs Other charges Total other expenses Extraordinary / unusual items PROFIT / (LOSS) BEFORE TAXATION TAXATION Current Prior years Deferred PROFIT / (LOSS) AFTER TAXATION Accumulated loss brought forward Transferred to Statutory Reserve Accumulated loss carried forward Basic and diluted earnings / (loss) per share (Rupees) QUARTERLY REPORT 2011 The annexed notes from 1 to 15 form an integral part of these financial statements.214 63.335 6.699) 4.069) 361.893 425.991 445.141 (14.069) (5.158 12.225) (602.442 439.809) (515.373 13.225) (592.313 6.843 75.019) Profit/Return on financings.511 356.221 920 440.978 17.188 526.158 75.549 24.689) 0.655 1.100) (4.001 525.126 637. 2011 Quarter ended Quater ended March 31.289 (9.994 14.888) (592.665 26.811) (9.699) (14.

2011 March 31.506 58.515) 38. 2011 The annexed notes from 1 to 15 form an integral part of these financial statements.821 (17.615 (20. QUARTERLY REPORT 2011 -SdChairman 08 -SdChief Executive Officer -SdDirector -SdDirector .STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE QUARTER ENDED MARCH 31. 2010 (Restated) ------.435) 32.Rupees in `000 ------Profit / (Loss) after taxation Other comprehensive income Other comprehensive income / (loss) transferred to equity Components of comprehensive income not transferred to equity Surplus on revaluation of available for sale securities Deferred tax on surplus on revaluation of available for sale securities Total comprehensive income for the quarter 49.120 49.212 49.100 28.888) March 31.386 81.120 (9.888) (9.

210) (695.597 197.201 6.000 1.258 295.249) 1.986) 24.069) (728) 4.137 (5.021 103.215 (2.096) 486.699) (14.231 13.867) (2.166. 2011 QUARTERLY REPORT 2011 105.699) 84.994 (12. 2011 CASH FLOWS FROM OPERATING ACTIVITIES Profit / (Loss) before taxation Less: Dividend income Adjustments: Depreciation Amortization of intangible asset Depreciation on operating Ijarah Provision/(Reversal )against non-performing financings Gain on revaluation of investments (classified as held-for-trading) Loss / (gain) on sale of fixed assets Deferred cost amortized (Increase) / decrease in operating assets Due from financial institutions Held-for-trading securities Financings Others assets (excluding advance taxation and deferred cost) Increase / (decrease) in operating liabilities Bills payable Repayments / Borrowings from financial institutions Deposits and other accounts Other liabilities Income tax paid Net cash generated from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Investments in available-for-sale securities-net Dividend income received Investments in operating fixed assets Sale proceeds of property and equipment disposed-off Net cash (used in) / generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Issue of share capital Net cash flow from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the quarter Cash and cash equivalents at end of the quarter March 31.964) (692.192) 2.279) (383.158 75.648 (625.163 102.538.840 864.665) (4.608 (14.Rupees in `000 ------75.083.158 76.496.323 (2.772. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 09 .476 2.416 (557.802 (2.726 6.236 2.423 1.199 298.033) (128.604.824.770 2.162) 3.089) (487.INTERIM CONDENSED CASH FLOW STATEMENT (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.614 7.865) March 31.536.295.752 135.542) 6.523 The annexed notes from 1 to 15 form an integral part of these financial statements.934) 506.095.193) (27.335 (8.775.658) 286.452.086 220.582 86.507 (3.842) 4.990 (21.206 88.528 (2.065 3.910.277.998) (1.540.912. 2010 (Restated) ------.

454 QUARTERLY REPORT 2011 The annexed notes from 1 to 15 form an integral part of these financial statements.310 (554.004 9. 2010 Profit for the quarter ended March 31.734.120 4.438 5.438 (9.Rupees in `000 ------(592.120 49.120 Other comprehensive income Total comprehensive income for the quarter ended March 31. 2011 49. 2010 (Restated) Profit for the period ended December 31.824) (515.INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.124 5. 2010(Restated) Balance as at March 31.279.279.438 56. 2010 (Restated) Other comprehensive income Total comprehensive loss for the quarter ended March 31.824 19. 2010 Other comprehensive income Total comprehensive profit for the period ended December 31.279.689) 49.783.120 (9.888) (9. 2010 Transferred to statutory reserve Issue of right shares during the period Balance as at December 31. 2011 Share Capital Balance as at January 01. 2011 5.888) 5.985) 4. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 10 .566 (9.134 49.679 9.679 9.888) (9.225) Total 4.310 56.677.438 56.687. 2010 Loss for the quarter ended March 31.113) 4.310) 56.279.679 (602. 2011 Transferred to statutory reserve Balance as at March 31.679 Statutory Accumulated Reserve Loss ------.888) (9.

The MCR (free of losses) as of December 31. The registered office of the Bank is situated at 11th Floor. 2011 has granted the Bank exemption from its MCR till June 30. 2009 was Rs. 2011 has in principle agreed to issue right shares to increase its capital (free of losses) to Rs. 07 of 2009 dated April 15. the purchases. 1984. The shares of the Bank are quoted on the Karachi Stock Exchange. 1962 and regulations / directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP). Marine Drive. The State Bank of Pakistan (SBP) vide circular No. 2. SBP vide its letter No. The Bank is operating with one hundred and two branches including thirty two sub-branches (December 31. 2011. 2013. 2010 was Rs. BASIS OF PRESENTATION These interim condensed financial statements are unaudited and have been prepared in accordance with the requirements of State Bank of Pakistan. 1962 or the requirements of the said regulations / directives shall prevail. 2010: 102 branches) as at March 31. The Bank provides financing mainly through shariah compliant financial products. the requirements of the Companies Ordinance.2 2. 1962 or regulations / directives issued by the SECP and the SBP differ with the requirements of IFRS or IFAS. 2006. These financial statements are separate financial statements of the Bank in which investments in subsidiaries are accounted for on the basis of direct equity interest and are not consolidated. 6 billion and for the year ended December 31. the requirements of the Companies Ordinance. Banking Companies Ordinance.3 3.1 and . Banking Companies Ordinance. 1984. 2011 1. sales and rentals arising under these arrangements are not reflected in these interim financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of rental / profit thereon. 2004 under the Companies Ordinance. 6 billion well before June 30. 2011 subject to the condition that the Bank will complete all formalities of the proposed right issue and raise its capital to Rs. 2011 amounts to Rs. The paid up capital of the Bank (free of losses) as of March 31. 1984. Block-4. Clifton.1 2. Except for Murabaha and Ijarah transactions (which are accounted for under the Islamic Financial Accounting Standard . 1. Karachi. STATEMENT OF COMPLIANCE These interim condensed financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. BSD/BAI-3/608/2773/2011 dated March 07.1 STATUS AND NATURE OF BUSINESS BankIslami Pakistan Limited (the Bank) was incorporated in Pakistan as a public limited company on October 18.2). 1984 to carry out business of an Islamic Commercial Bank in accordance with the principles of Islamic Shariah. In view of the above capital requirements. The Bank commenced its operations from April 07. 1984. 1. Further. the Board of Directors of the Bank in their meeting held on February 07.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31. 7 billion.2 QUARTERLY REPORT 2011 2. Dolmen City. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance. 6 billion. 2011.783 billion. 3.1 11 . Income. 10 billion to be achieved in a phased manner by December 31. if any. 4. Wherever the requirements of the Companies Ordinance. 2009 has increased the Minimum Capital Requirement (MCR) for Banks upto Rs. Banking Companies Ordinance. received which does not comply with the principles of Islamic Shariah is recognized as charity payable.

according to the notification of SECP dated 28 April 2008. SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in preparation of these interim condensed financial statements and the significant judgments made are consistent with those applied in the preparation of the financial statements of the Bank for the year ended December 31. these interim condensed financial statements should be read in conjunction with the annual financial statements of the Bank for the year ended December 31.697.682.504 49. These are separate interim condensed financial statements of the Bank in which investments in the subsidiaries and associates reported on the basis of direct equity interest and are not consolidated or accounted for by using equity method of accounting.469.313 49. "Investment Property" for Banking companies till further instructions.504 49.821 . "Financial Instruments: Recognition and Measurement" and IAS 40.16. dated August 26. 2002 has deferred the applicability of International Accounting Standard (IAS) 39.454. 2011 3.454.313 (15.469.132 . The disclosures made in these interim condensed financial statements have been limited based on the format prescribed by the SBP vide BSD Circular letter No. 2011 (Unaudited) December 31.015 16.015 191.278.16.819 13.504.3 3.277 21 - 13. Accordingly.313 (15.682.313 49.000) 13.504 (15.132 - 191.015 13.468 21 . 2004 and International Accounting Standard 34.000) . 10.2 The SBP vide BSD Circular No.1 5.Rupees in '000 --------------------------------------------Held by Given as Held by Given as Bank collateral Total Bank collateral Total QUARTERLY REPORT 2011 Available-for-sale securities Sukuk Bonds (Certificates) Mutual Funds (Units) Subsidiaries BankIslami Modaraba Investment Limited Investments at cost Less: Provision for diminution in value of investments Investments .504.net of provisions Surplus on revaluation of available-for-sale securities Total investments 16.278. Accordingly.697. accounted for and valued in accordance with the requirement of various circulars issued by SBP. --------------------------------------------.16. 2010.732.325 - 191. 2010.000) 16.468 21 13.819 13.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.506.821 16. "Interim Financial Reporting" and do not include all of the information required in the annual financial statements. IFRS7 "Financial Instruments: Disclosures" has not been made applicable for banks.504 (15. 2 dated May 12.325 12 .015 13.732. the requirements of these standards have not been considered in the preparation of these financial statements. Further.277 21 191.4 4. INVESTMENTS March 31. 4.16. investments have been classified.506. 2010 (Audited) 3.000) 13. However.

999.364 809.681) (32.575 2.619 607.2 Financings include Rs. 2011 2010 (Unaudited) (Audited) Note ------.765 5.Housing .000 429.381 14.081 940.870.277 706.662.591 . 2010: Rs.358 647.624 16.net of provision 6. 741. 2010 Category of classification --------------------------------.658.059 763.gross Provision for non-performing financings . 3.089 .681 296.Financings to employees Housing Finance Portfolio Net investment in Ijarah financing In Pakistan Net assets/investment in ijarah financing under IFAS 2 in Pakistan Financings .680 50.008 68.Against Bills-Salam .492 283. 2010: Rs.Others .999 million (December 31.059 December 31.1 6.150 million) against Istisn'a under Islamic Export Refinance Scheme.115 16.247 300.814 625.350 8. 2011 March 31. 719.553 68.727.622. December 31.591 8.416 6.247 42.379 6.Musawamah .680 million) which have been placed under non-performing status as follows: March 31.Against Bills .125 6.059 300.247) 16.625.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31. 47.Istisn’a .2 (300.719.285 1.Rupees in '000 --------------------------------Domestic Overseas Total Provision Provision Required Held Substandard Doubtful Loss 50.712 6.670.434.445.323 283.379 50.089 285.186 million) against Murabaha under Islamic Export Refinance Scheme.323 .420 343. 2010: Rs.681 13 .712 50.Rupees in `000 ------6.Diminishing Musharaka .492 741.721 719.1 5.741.Diminishing Musharaka .836.721 285.722 6.Murabaha . 49.041.376 14. 6.1 Murabaha includes financings amounting to Rs.635 8.680 296.640 400.247 million (December 31.457 1.635 622. 169.456.Rupees in '000 --------------------------------Domestic Overseas Total Provision Provision Required Held QUARTERLY REPORT 2011 Substandard Doubtful Loss 42.553 5.376.000 946.718 9.Musawama .Specific .Against Bills . FINANCINGS Financings . Istisn'a Includes financings amounting to Rs.566 4.059) (35.Payment against documents .General Financings .008 5.161.291) 16. 2011 Category of classification --------------------------------.051 million (December 31.097 (296.Murabaha .in Pakistan .814 8.825 1.350 .098 16.

4.437) 32. December 31. SHARE CAPITAL March 31.912.for-sale securities Sukuk Bonds Mutual Funds Less: Related deferred tax liability 49.967.681 296.non-remunerative Margin accounts . DEPOSITS AND OTHER ACCOUNTS March 31.Number of shares ------Unaudited (Audited) Issued.944 40.201 8.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.067 37.819 (17.796. 2011 2010 ------.829 39.679 527.117 27. 2011 Particulars of provision against non-performing financings: December 31.279.247 35.749. 2011 2010 (Unaudited) (Audited) ------.291 32. 2011 6.821 49. December 31.881.862 158.972 6.247 335.967.435) 32.279.305 38. subscribed and paid up capital 527.224 199.898 Fully paid in cash QUARTERLY REPORT 2011 March 31.679 5.306 296.279.679 5. December 31.1 The Bank has maintained a general reserve (provision) in accordance with the applicable requirements of the prudential regulations for consumer financing issued by the SBP and for potential losses on financings.967.898 Ordinary shares 527.967.681 32.Rupees in `000 ------20.059 35.315 27.898 258.744 154. SURPLUS ON REVALUATION OF ASSETS .972 328.net of tax Surplus on revaluation of available.915.320 Customers Fixed deposits Savings deposits Current accounts . 7.450 10.386 49.483 18.291 328. 2010 --------------------------------------------.059 300. 2011 2010 ------.560 9.409 8.306 335.198.382 14 .Rupees in '000 --------------------------------------------Specific General Total Specific General Total In local currency In foreign currency 300.821 (17.279.819 49.982.non-remunerative Financial institutions Remunerative deposits Non remunerative deposits 8.898 527.061.Rupees in `000 ------Unaudited (Audited) 5.898 9.975.679 5.4 March 31.108.

Others 10.6 Other commitments Bills for collection 11.208. CONTINGENCIES AND COMMITMENTS March 31.037 3.126 QUARTERLY REPORT 2011 On Investments in available for sale securities On deposits / placements with financial institutions Others 383.060 801.833 176. INVESTMENTS March 31.121 1.935 110.4 Commitments in respect of forward exchange Purchase Sale 10.797 475.816 576. 2011 2010 (Unaudited) (Audited) ------.981 128.270 373.132 March 31.661 34.588 13.571 982.650 339.635 4.Government .745 320.678 452. 2011 2010 AND PLACEMENTS EARNED (Unaudited) (Unaudited) ------.306 209.Rupees in `000 ------On financings to: Customers Financial institutions 601.991 15 .NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.260.989 593.1 Transaction-related contingent liabilities Guarantees favouring .523 982. 2011 10. December 31.2 Trade-related contingent liabilities Import letters of credit Acceptances 10.267 141.Rupees in `000 ------683. PROFIT / RETURN ON FINANCINGS. 1.411 742.5 Commitments for the acquisition of operating fixed assets 10.501 4.801.514 869.Banks .826 8.606 347.245 10.3 Claims not acknowledged as debt 10.490 192.606 1.939 352.

322 March 31.435) 12. 2010)(Restated) Segment assets (gross) Segment non performing financings Segment provision required Segment liabilities 5.065) 26.452 1.Rupees in '000 --------------------------------- Total income (For the period ended March 31.772 (9.197.159 3. 2010 49.812) 13.924 16 .647) 2.149 1.418) 377.799 (183.765.647 (867.355.727 880.860 313.924) (368.315 (812.245 (505. 2011 Trading & Sales Retail Commercial Banking Banking Support Centers Total --------------------------------.955 4.563 (246.692 23.926) (361.393 20. income and expenses: Profit earned on financing Return on deposits expensed March 31. 2011 12.029 49.895 Support Centers 1.411.Rupees in `000 ------(Unaudited) (Unaudited) 2.269.584 4.032) 94.908 328.819) 88. 2010 (Restated) ------.338) 2. RELATED PARTY TRANSACTIONS The details of transactions with related parties during the period are as follows: QUARTERLY REPORT 2011 SUBSIDIARY Deposits: At January 1 Deposit during the quarter Withdrawal during the quarter At March 31 March 31.278 Trading & Sales 797.993.317 13. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES The Segment analysis with respect to business activities is as follows: March 31.743.180) (140.335 (230.711. 2011 2010 ------.639 176.Rupees in `000 ------(Unaudited) (Audited) 88.022) 28.418) 309.058 342.337 120.494 8.888) 45.460 (61. 2010)(Restated) Net income / (loss) (For the period ended March 31.555 Transactions. 2011 75.398 157.418) (21.949.555 188.033 41.326) (203.246.191 1.688 374.571.520 537.884 875.631 (15.328) (200.858 (246.798 621.418) (21.589) 17.905 40.918) 40.860 496.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.254.045 (36.252) 42.Rupees in '000 --------------------------------- Total income Total expenses Net income / (loss) Segment assets (gross) Segment non performing financings Segment provision required Segment liabilities December 31.120 47.416 865.643.022 61.655.876.997 254. December 31.042 217.115 (505.044 202.673.397.838 18. 2010)(Restated) Total expenses (For the period ended March 31.461 23.621 (812.553 Total Retail Commercial Banking Banking --------------------------------.180) (143.729 (61.133.

income and expenses: Return on deposits expensed Profit earned on Financing Repair and Maintenance March 31.142 162.359 512.439 (13. December 31. income and expenses: Profit earned on financing Return on deposits expensed March 31.062 (5.Rupees in `000 ------(Unaudited) (Unaudited) 2.973) 6.663 73.654 10.246 123. 2011 17.663 (2.904 (463.352 2. 2010 (Restated) ------.737 17.441 3.Rupees in `000 ------(Unaudited) (Audited) 17.691) 61.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.741 (208.Rupees in `000 ------(Unaudited) (Unaudited) 213 96 493 70 17 .167 731 69.167 3. December 31.142 ASSOCIATED UNDERTAKINGS Financings: At January 1. 2011 48.928) 76.070 1.737 QUARTERLY REPORT 2011 Transactions. 2011 2010 ------. 2011 March 31.955 March 31.796 18.286 (67. Disbursed during the quarter Repaid during the quarter At the end of the quarter Deposits: At January 1 Deposit during the quarter Withdrawal during the quarter At March 31 Transactions.114 - KEY MANAGEMENT PERSONNEL Financings: At January 1 Disbursed during the quarter Repaid during the quarter At March 31 Deposits: At January 1 Deposit during the quarter Withdrawal during the quarter At March 31 March 31. 2010 (Restated) ------. 2011 2010 ------.121) 123.203 March 31.124 (939) 63.417) 15.280) 2.663 17.Rupees in `000 ------(Unaudited) (Audited) 61.

-SdChairman -SdChief Executive Officer -SdDirector -SdDirector QUARTERLY REPORT 2011 18 . 2011 by the Board of Directors of the Bank 15. GENERAL Figures have been rounded off to the nearest thousand rupees. DATE OF AUTHRIZATION FOR ISSUE These interim condensed financial statements were authorized for issue on April 27.NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED) FOR THE QUARTER ENDED MARCH 31. unless otherwise stated. 2011 14. Figures have been restated where ever necessary for the purpose of comparison.

Consolidated Financial Statements of BankIslami Pakistan Limited for the Quarter Ended March 31. 2011 QUARTERLY REPORT 2011 19 .

Following are the highlights: (Rs in millions) March 31.014 47. 670 13.77% 20. I am pleased to present the financial results of the first quarter of 2011.41% 1. The Bank has been able to post growth in its Deposits by 5%. 764 102 March 31.00% 5.097 December 31.016) Change (%) 5.488 16. 333 4. Bilgrami Chief Executive Officer April 27. we would like to place on record our appreciation to State Bank of Pakistan for continued support.3% Our group performance remained satisfactory. 2010 38. 565 4.65% -3. Finally. 2011 .947 16.041 16.07% 0 Basic EPS (Rupees) 706.65%. 815 102 March 31.110 44. 2011 Total Deposits Total Assets Net Financing Total Investments Shareholders Equity Branches 40. Investments by 20. 2010 (0.41% and Assets by 5. 2011 0. guidance as well as understanding. On behalf of the Board QUARTERLY REPORT 2011 20 Hasan A.DIRECTORS' REPORT On behalf of the Board.

731.858 4.487.678 LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities NET ASSETS REPRESENTED BY Share capital Reserves Accumulated loss Surplus on revaluation of assets .515 4.382 4.109.946.781 32.679 18.259.648 5.626 5.705 40.163 5.814.163 QUARTERLY REPORT 2011 CONTINGENCIES AND COMMITMENTS The annexed notes from 1 to 7 form an integral part of these financial statements.000 38. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 21 .782.416 1.626 563.004 396.Rupees in `000 ------ASSETS Cash and balances with treasury banks Balances with other banks Due from financial institutions Investments Financings Operating fixed assets Deferred tax assets Other assets 2.790 1.156.917 16.182.020 353.814.418 44.855 409.145 4.771 3. 2011 2010 (Unaudited) (Audited) ------.478.774 47.617 550.673.279.net of tax 849.000 40.979.925 31.130) 4.252 1.125 2.461 (515.701 4.035.CONSOLIDATED INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION AS AT MARCH 31.564. 2011 March 31.014.584 434.513.276 42.232 (556.654 16.483 4.229 16.215) 4.754. December 31.279.041.332.134.764.764.153 570.679 8.670.048.132 13.070.199 4.

534 (12.054 605.752 51.215) 0.097 803.218) (596.537 38.Rupees in `000 ------1.214 63.668) (4.896 13.523 5.069) 364.281 77.421 24.069) (5.385 573.099 13.843 635.144 (556.994 14. commission and brokerage income Dividend income Income from dealing in foreign currencies Capital gain on sale of securities Unrealized gain/(loss) on revaluation of investments classified as held-for-trading Other income Total other income OTHER EXPENSES Administrative expenses Other provisions / write-offs Other charges Total other expenses Extraordinary / unusual items QUARTERLY REPORT 2011 PROFIT/ (LOSS) BEFORE TAXATION TAXATION Current Prior years Deferred PROFIT/(LOSS) AFTER TAXATION Accumulated loss brought forward Transferred to Statutory Reserve Accumulated loss carried forward Basic and diluted earnings / (loss) per share (Rupees) The annexed notes from 1 to 7 form an integral part of these financial statements.177 526. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 22 .636 (7. investments and placements earned Return on deposits and other dues expensed Net spread earned Provision / (Reversal) against non-performing financings Provision for diminution in the value of investments Bad debts written off directly Net spread after provisions OTHER INCOME Fee.188) (588.218) (588.359) (515.406) (0.893 428.004 443.208.458 6.614 920 440.745 8.896 77.123 17.335 6.229) (566.016) Proft/Return on financings. March 31.093 1.653 26.220) (12.335 567.314 439.130) (10.188 527. 2010 2011 (Restated) ------. 2011 Quarter ended Quarter ended March 31.220) 3.032) (8.352 (5.CONSOLIDATED INTERIM CONDENSED PROFIT AND LOSS ACCOUNT (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.652 359.934 30.

845 46. 2011 March 31.701 82.Rupees in `000 ------51.189 The annexed notes from 1 to 7 form an integral part of these financial statements.734 (16.771 (17.188) March 31. QUARTERLY REPORT 2011 -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 23 .377 22. 2010 (Restated) ------.144 (8.144 51.CONSOLIDATED INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.188) (8.070) 31. 2011 Profit / (Loss) after taxation Other comprehensive income Other comprehensive income / (loss) transferred to equity Components of comprehensive income not transferred to equity Surplus on revaluation of available for sale securities Deferred tax on surplus on revaluation of available for sale securities Total comprehensive income for the quarter 48.357) 30.

606.896 (2.710 6.452.315) (27.538.280) (384.579) 2.097) 486.069) (728) 4.539.934) 506.CONSOLIDATED INTERIM CONDENSED CASH FLOW STATEMENT (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.913.011 2.232 (12.277. 2011 March 31.220) 84.335 (8.553 1.824.231 13.584 CASH FLOWS FROM OPERATING ACTIVITIES Profit / (Loss) before taxation Less: Dividend income Adjustments: Depreciation Amortization of intangible asset Depreciation on operating Ijarah Provision / (Reversal) against non-performing financings Gain on revaluation of investments (classified as held-for-trading) Loss / (gain) on sale of fixed assets Deferred cost amortized (Increase) / decrease in operating assets Due from financial institutions Held-for-trading securities Financings Others assets (excluding advance taxation and deferred cost) Increase / (decrease) in operating liabilities Bills payable Repayments / Borrowings from financial institutions Deposits and other accounts Other liabilities Income tax paid Net cash generated from / (used in) operating activities QUARTERLY REPORT 2011 CASH FLOWS FROM INVESTING ACTIVITIES Investments in available-for-sale securities-net Dividend income received Investments in operating fixed assets Sale proceeds of property and equipment disposed-off Net cash (used in) / generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Issue of share capital Net cash flow from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the quarter Cash and cash equivalents at end of the quarter The annexed notes from 1 to 7 form an integral part of these financial statements.597 197.744) 6.582 86.021 102.496 (3.767 297.409) 286.486 (2.215 (2.090) (487.085) (692.726 6.990 (20.086 219. 2011 March 31.271) (128.Rupees in `000 ------77.220) (12.960) (695.462 102.648 (624.538.663 (557.167.901) (4.769.000 1.640) 105.842) 4.490.896 75.306 (2.840 862. 2010 (Restated) ------.676) 1.752 135. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 24 .137 (5.351) (2.295.572 2.985) 24.779) 3.124 7.773.080.027 298.631 2.896 77.328 3.716 90.092.904.289) (1.885 (12.

279.CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED) FOR THE QUARTER ENDED MARCH 31.781 51. 2010 (Restated) Balance as at March 31.188) (597. 2011 Other Comprehensive Income Total Comprehensive profit for the quarter ended March 31. 2010 (Restated) Profit for the period ended December 31.279.229) (515.679 5.279.679 8.679 - 4.731.622 (8.232 8.925 Total Balance as at January 01.347 4. 2010 Other comprehensive income Total Comprehensive profit for the period ended December 31.245) 49.461 (8.215) 51. 2011 Transferred to statutory reserve Closing Balance as at March 31.144 51.347 49.782. 2011 Share Capital Statutory Accumulated Reserve Loss ------.682.Rupees in `000 ------(589. 2010 Transferred to Statutory Reserve Closing Balance as at December 31. 2011 5.347 5. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector 25 .057) (8.434 49.232 10.347 49. 2010 Loss for the quarter ended March 31.144 4.144 - QUARTERLY REPORT 2011 The annexed notes from 1 to 7 form an integral part of these financial statements.144 (10.279.229 18.130) 51.232) (556. 2010 Profit for the quarter ended March 31.188) 4.679 5.690.

Karachi. 7 billion. Bankislami Modaraba Investment Limited was incorporated in Pakistan on January 22.1 2. The registered office of the Bank is situated at 11th Floor. 26 . sales and rentals arising under these arrangements are not reflected in these interim financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of rental / profit thereon. The paid up capital of the Bank (free of losses) as of March 31. 1984.2). 2009 has increased the Minimum Capital Requirement (MCR) for Banks upto Rs.2 QUARTERLY REPORT 2011 2. 6 billion. 2011. 2011 subject to the condition that the Bank will complete all formalities of the proposed right issue and raise its capital to Rs. SBP vide its letter No. The Bank commenced its operations from April 07.2 BASIS OF PRESENTATION These interim condensed financial statements are unaudited and have been prepared in accordance with the requirements of State Bank of Pakistan. The Bank is operating with one hundred and two branches including thirty two sub-branches (December 31. 2006. 2011 amounts to Rs. Except for Murabaha and Ijarah transactions (which are accounted for under the Islamic Financial Accounting Standard . under the Modaraba Companies and Modarabas (Floatation and Control) Ordinance. 2010: 102 branches) as at March 31. The registered office of the company is situated at 10th Floor.783 billion. 2011 (UNAUDITED) BankIslami Pakistan Limited (the Bank) was incorporated in Pakistan as a public limited company on October 18. the purchases. 4. received which does not comply with the principles of Islamic Shariah is recognized as charity payable.1 STATUS AND NATURE OF BUSINESS FOR THE QUARTER ENDED MARCH 31. The MCR (free of losses) as of December 31. 2011 has granted the Bank exemption from its MCR till June 30. Marine Drive. In view of the above capital requirements. 2009 was Rs. 1986 as a public unquoted company under the Companies Ordinance. The shares of the Bank are quoted on the Karachi Stock Exchange. Further. The Bank provides financing mainly through shariah compliant financial products. 2. The Bank has acquired 100 percent shares of Bankislami Modaraba Investment Limited ( a unquoted public company) on August 31. Later on it was registered as a Modaraba Company with the Registrar of Modaraba Companies and Modarabas.1 and . The State Bank of Pakistan (SBP) vide circular No. 2013. 6 billion well before June 30. 1. 2004 under the Companies Ordinance. Income. Dolmen City. Clifton. 2011 has in principle agreed to issue right shares to increase its capital (free of losses) to Rs. 07 of 2009 dated April 15. 2010 is Rs. if any. Karachi. 10 billion to be achieved in a phased manner by December 31. 1. Progressive Square. the Board of Directors of the Bank in their meeting held on February 07. 1980. Shahrah-e-Faisal. 2007. 1984 to carry out business of an Islamic Commercial Bank in accordance with the principles of Islamic Shariah. 2011. Block-4.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. 6 billion and for the year ended December 31. BSD/BAI-3/608/2773/2011 dated March 07. The principal activity of the company is to act as modarba management company.

Accordingly. However. these interim condensed financial statements should be read in conjunction with the annual financial statements of the Bank for the year ended December 31. Banking Companies Ordinance. 2 dated May 12. Accordingly. Further. 2002 has deferred the applicability of International Accounting Standard (IAS) 39. SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted in preparation of these interim condensed financial statements and the significant judgments made are consistent with those applied in the preparation of the financial statements of the Bank for the year ended December 31. 2011 (UNAUDITED) 3. 1984. Wherever the requirements of the Companies Ordinance. The disclosures made in these interim condensed financial statements have been limited based on the format prescribed by the SBP vide BSD Circular letter No. "Investment Property" for Banking companies till further instructions. the requirements of the Companies Ordinance.1 STATEMENT OF COMPLIANCE These interim condensed financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. according to the notification of SECP dated 28 April 2008. 1984.3 QUARTERLY REPORT 2011 4. the requirements of the Companies Ordinance. Banking Companies Ordinance. The SBP vide BSD Circular No. 10. 1962 or regulations / directives issued by the SECP and the SBP differ with the requirements of IFRS or IFAS. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance.1 5 27 . dated August 26. 3. BASIS OF CONSOLIDATION The consolidated financial statements incorporate the financial statements of the Bank and Bankislami Modaraba Investment Limited. "Interim Financial Reporting" and do not include all of the information required in the annual financial statements. 1962 and regulations / directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP). 4. IFRS-7 "Financial Instruments: Disclosures" has not been made applicable for banks. 2010. "Financial Instruments: Recognition and Measurement" and IAS 40. balances. All intra-group transactions.2 3. accounted for and valued in accordance with the requirement of various circulars issued by SBP. the requirements of these standards have not been considered in the preparation of these financial statements.NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED MARCH 31. 2010. income and expenses are eliminated in full on consolidation. 1984. 3. 2004 and International Accounting Standard 34. investments have been classified. 1962 or the requirements of the said regulations / directives shall prevail. 1984. Banking Companies Ordinance.

Cash .NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 5.generating units to which goodwill has been allocated will be tested for impairment annually. If the recoverable amount of the cash . Goodwill arising on acquisition is recognised as an asset and initially measured at cost. being the excess of the cost of the business combination over the Group's interest in the net fair value of the identifiable assets. If. after reassessment. An impairment loss recognized for goodwill is not reversed in a subsequent period.2 Goodwill Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group's interest in the net fair value of the identifiable assets. liabilities and contingent liabilities recognized. the Group's interest in the net fair value of the acquiree's identifiable assets. liabilities incurred or assumed. liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 Business Combinations are recognized at their fair values at the acquisition date. unless otherwise stated. liabilities and contingent liabilities exceeds the cost of the business combination. and equity instruments issued by the Bank in exchange for control of the acquiree. 5. 2011 (UNAUDITED) Acquisition of subsidiary is accounted for using the purchase method. The acquiree's identifiable assets. -SdChairman -SdChief Executive Officer -SdDirector -SdDirector QUARTERLY REPORT 2011 28 .generating units expected to benefit from the synergies of the combination. the excess is recognized immediately in profit or loss. For the purpose of impairment testing. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. or more frequently when there is an indication that the unit may be impaired. the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.generating unit is less than the carrying amount of the unit.1 Business combinations FOR THE QUARTER ENDED MARCH 31. plus any costs directly attributable to the business combination. The cost of the business combination is measured as the aggregate of the fair values (at the date of exchange) of assets given. liabilities and contingent liabilities of the subsidiary or jointly controlled entity recognised at the date of acquisition. 6DATE OF AUTHORIZATION FOR ISSUE These interim condensed consolidated financial statements were authorized for issue on April 27. 7GENERAL Figures have been rounded off to the nearest thousand rupees. goodwill is allocated to each of the Group's cash . 2011 by the Board of Directors of the Bank.