CONTENTS

Corporate Information 2
Directors' Review 3
Auditors Report to the Members on Review of Interim Financial Information 4
Interim Condensed Statement of Financial Position 5
Interim Condensed Profit and Loss Account 6
Interim Condensed Statement of Comprehensive Income 7
Interim Condensed Statement of Changes in Equity 8
Interim Condensed Cash Flow Statement 9
Notes to the Interim Condensed Financial Statements 10
Consolidated Financial Statements 25
1
2
CORPORATE INFORMATION
Board of Ali Raza D. Habib Chairman
Directors Abbas D. Habib Chief Executive & Managing Director
Anwar Haji Karim
Hasnain A. Habib
Imtiaz Alam Hanfi
Manzoor Ahmed
Murtaza H. Habib
Qumail R. Habib Executive Director
Shameem Ahmed
Syed Mazhar Abbas
Audit Shameem Ahmed Chairman
Committee Anwar Haji Karim Member
Murtaza H. Habib Member
Syed Mazhar Abbas Member
Human Resource Syed Mazhar Abbas Chairman
& Remuneration Abbas D. Habib Member
Committee Anwar Haji Karim Member
Murtaza H. Habib Member
Company
Secretary A. Saeed Siddiqui
Statutory Ernst & Young Ford Rhodes Sidat Hyder
Auditors Chartered Accountants
Legal Liaquat Merchant Associates
Advisor Advocates and Corporate Legal Consultants
Registered 126-C, Old Bahawalpur Road,
Office Multan
Principal 2nd Floor, Mackinnons Building,
Office I.I. Chundrigar Road,
Karachi
Share M/s. Noble Computer Services (Pvt.) Limited
Registrar First Floor, House of Habib Building, (Siddiqsons Tower),
3-Jinnah Co-operative Housing Society,
Main Shahrah-e-Faisal, Karachi.
Website www.bankalhabib.com
ALI RAZA D. HABIB
Chairman
DIRECTORS REVIEW
On behalf of the Board of Directors of the Bank, it is my pleasure to present the un-audited
financial statements of Bank AL Habib Limited along with the un-audited consolidated
financial statements of Bank AL Habib Limited and the Bank's Subsidiary M/s. AL Habib
Capital Markets (Private) Limited for the half year ended June 30, 2013.
Alhamdolillah, during the period under review, the performance of the Bank continued to
be generally satisfactory, keeping in view the prevailing monetary environment. The deposits
increased to Rs. 364.8 billion as compared to Rs. 340.4 billion on December 31, 2012. In
the same period, advances increased to Rs. 150.8 billion from Rs. 147.9 billion, while
investments increased to Rs. 269.6 billion from Rs. 249.8 billion. The pre-tax profit of the
Bank for the half year ended June 30, 2013 was Rs. 3,696.1 million as compared to
Rs. 4,462.9 million during the corresponding period last year. Earnings have declined mainly
due to reduction in interest rates.
Your Bank now has a network of 407 offices, comprising 316 branches, 88 sub-branches,
and three Representative Offices. Our network now includes four overseas offices (a
Wholesale Branch in the Kingdom of Bahrain and Representative Offices in Dubai, Istanbul
and Beijing) and 15 Islamic Banking Branches. Continuing with our branch expansion policy,
the Bank intends to open more branches and sub-branches during the year 2013.
Pakistan Credit Rating Agency Limited (PACRA) has maintained the Bank's long term and
short term entity ratings at AA+ (Double A plus) and A1+ (A One plus), respectively. The
ratings of our unsecured, subordinated TFCs have also been maintained at AA (Double
A). These ratings denote a very low expectation of credit risk emanating from a very strong
capacity for timely payment of financial commitments.
We wish to thank our customers for their continued support and confidence, the State Bank
of Pakistan for their guidance, and local and foreign correspondents for their cooperation.
We also thank all our staff members for their sincere and dedicated services.
3
Karachi: August 29, 2013
On behalf of the Board of Directors
AUDITORS REPORT TO THE MEMBERS ON REVIEW OF INTERIM FINANCIAL
INFORMATION
Introduction
We have reviewed the accompanying interim condensed statement of financial position
of Bank AL Habib Limited (the Bank) as at 30 June 2013 and the related interim condensed
profit and loss account, interim condensed statement of comprehensive income, interim
condensed statement of changes in equity, and interim condensed cash flow and explanatory
notes (here-in-after referred to as the "interim financial information") for the six-months'
period then ended. Management is responsible for the preparation and presentation of this
interim financial information in accordance with approved accounting standards as applicable
in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on
this interim financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements
2410, "Review of Interim Financial Information Performed by the Independent Auditor of
the Entity." A review of interim financial information consists of making inquiries, primarily
of persons responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing and consequently does not enable
us to obtain assurance that we would become aware of all significant matters that might
be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial information is not prepared, in all material respects, in
accordance with approved accounting standards as applicable in Pakistan for interim
financial reporting.
4
Ernst & Young Ford Rhodes Sidat Hyder
Chartered Accountants
Engagement Partner: Arslan Khalid
Karachi - 29 August 2013
5
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in '000)
Restated
ASSETS
Cash and balances with treasury banks 31,625,770 27,464,340
Balances with other banks 2,154,471 9,744,716
Lendings to financial institutions 2,511,984 993,981
Investments 4 269,592,012 249,754,075
Advances 5 150,829,856 147,868,668
Operating fixed assets 6 11,358,927 11,164,099
Deferred tax assets 00 000
Other assets 6,689,167 6,115,660
474,762,187 453,105,539
LIABILITIES
Bills payable 8,619,848 5,257,191
Borrowings 7 63,725,357 69,622,055
Deposits and other accounts 8 364,773,860 340,392,871
Sub-ordinated loans 6,487,600 6,489,300
Liabilities against assets subject to finance lease 00 000
Deferred tax liabilities 2,001,022 1,872,450
Other liabilities 5,679,208 5,654,411
451,286,895 429,288,278
NET ASSETS 23,475,292 23,817,261
REPRESENTED BY :
Share capital 10,103,868 10,103,868
Reserves 6,974,537 6,464,546
Unappropriated profit 3,425,770 4,492,756
20,504,175 21,061,170
Surplus on revaluation of assets - net of tax 9 2,971,117 2,756,091
23,475,292 23,817,261
CONTINGENCIES AND COMMITMENTS 10
The annexed notes 1 to 19 form an integral part of these interim condensed financial statements.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
6
INTERIM CONDENSED PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
Half year ended Quarter ended
Note 30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Rupees in '000)
Restated Restated
Mark-up / return / interest earned 11 19,208,802 20,832,517 9,524,174 10,294,629
Mark-up / return / interest expensed 12 (12,197,650) (13,270,727) (6,041,154) (6,480,836)
Net mark-up / return / interest income 7,011,152 7,561,790 3,483,020 3,813,793
Provision against non-performing loans and advances (254,239) (379,497) (92,141) (110,319)
Provision for diminution in the value of investments 00 00 00 00
Bad debts written-off directly (96) 00 (96) 00
(254,335) (379,497) (92,237) (110,319)
Net mark-up / return / interest income after provisions 6,756,817 7,182,293 3,390,783 3,703,474
NON MARK-UP / INTEREST INCOME
Fee, commission and brokerage income 840,741 744,128 422,774 373,454
Dividend income 70,322 235,699 8,708 144,209
Income from dealing in foreign currencies 266,698 213,899 137,073 91,977
Gain on sale / redemption of securities-net 372,408 68,785 310,953 68,782
Unrealised gain / (loss) on revaluation of
investments classified as held for trading 00 00 00 00
Other income 260,239 219,837 129,503 111,217
Total non mark-up / interest income 1,810,408 1,482,348 1,009,011 789,639
8,567,225 8,664,641 4,399,794 4,493,113
NON MARK-UP / INTEREST EXPENSES
Administrative expenses (4,792,681) (4,110,558) (2,430,632) (2,003,572)
Other provisions / write-offs 492 00 10,864 00
Other charges (78,894) (91,149) (43,521) (45,792)
Total non mark-up / interest expenses (4,871,083) (4,201,707) (2,463,289) (2,049,364)
3,696,142 4,462,934 1,936,505 2,443,749
Extra-ordinary / unusual items 00 00 00 00
PROFIT BEFORE TAXATION 3,696,142 4,462,934 1,936,505 2,443,749
Taxation - Current (1,247,996) (1,618,647) (642,248) (833,826)
- Prior years 00 (57,437) 00 (57,437)
- Deferred (14,812) (275,160) (16,971) (252,922)
(1,262,808) (1,951,244) (659,219) (1,144,185)
PROFIT AFTER TAXATION 2,433,334 2,511,690 1,277,286 1,299,564
Basic and diluted earnings per share - Rupees 13 2.41 2.49 1.26 1.29
The annexed notes 1 to 19 form an integral part of these interim condensed financial statements.
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Rupees in '000)
Restated Restated
Net profit for the period 2,433,334 2,511,690 1,277,286 1,299,564
Other comprehensive income
Items to be reclassified to profit or
loss in subsequent periods:
Effect of foreign currency translation of net
investment in foreign branch 22,167 32,302 9,558 26,892
Items not to be reclassified to profit or
loss in subsequent periods:
Actuarial loss on defined benefit plan 00 (3,992) 00 (1,996)
Income tax effect 00 1,397 00 699
00 (2,595) 00 (1,297)
Total comprehensive income for the period 2,455,501 2,541,397 1,286,844 1,325,159
The annexed notes 1 to 19 form an integral part of these interim condensed financial statements.
7
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
Revenue Reserves
Share Statutory Special General Foreign Currency Unapp- Total
Capital Reserve Reserve Reserve Translation ropriated
Reserve Profit
(Rupees in 000)
Balance as at 01 January 2012 8,785,972 4,540,869 126,500 540,000 117,320 3,726,098 17,836,759
Effect of retrospective change in accounting
policy of recognising actuarial gains and losses
on defined benefit plan - net of tax (note 3.1) 00 00 00 00 00 (114,128) (114,128)
Balance as at 01 January 2012 - restated 8,785,972 4,54,540,869 126,500 540,000 117,320 3,611,970 17,722,631
Profit for the period - restated 00 00 00 00 00 2,511,690 2,511,690
Other comprehensive income - restated 00 00 00 00 32,302 (2,595) 29,707
Total comprehensive income - restated 00 00 00 00 32,302 2,509,095 2,541,397
Transfer from surplus on revaluation of fixed
assets - net of tax 00 00 00 00 00 18,706 18,706
Transfer to statutory reserve 00 501,760 00 00 00 (501,760) 00
Cash dividend (Rs. 2.5 per share) 00 00 00 00 00 (2,196,493) (2,196,493)
Issue of bonus shares in the ratio of 15
shares for every 100 shares held 1,317,896 00 00 00 00 (1,317,896) 00
Balance as at 30 June 2012 - restated 10,103,868 5,042,629 126,500 540,000 149,622 2,123,622 18,086,241
Profit for the period - restated 00 00 00 00 00 2,940,608 2,940,608
Other comprehensive income - restated 00 00 00 00 18,252 (2,595) 15,657
Total comprehensive income for the period 00 00 00 00 18,252 2,938,013 2,956,265
Transfer from surplus on revaluation of fixed
assets - net of tax 00 00 00 00 00 18,664 18,664
Transfer to statutory reserve 00 587,543 00 00 00 (587,543) 00
Balance as at 31 December 2012 - restated 10,103,868 5,630,172 126,500 540,000 167,874 4,492,756 21,061,170
Profit for the period 00 00 00 00 00 2,433,334 2,433,334
Other comprehensive income 00 00 00 00 22,167 00 22,167
Total comprehensive income for the period 00 00 00 00 22,167 2,433,334 2,455,501
Transfer from surplus on revaluation of fixed
assets - net of tax 00 00 00 00 00 18,664 18,664
Transfer to statutory reserve 00 487,824 00 00 00 (487,824) 00
Cash dividend (Rs. 3 per share) 00 00 00 00 00 (3,031,160) (3,031,160)
Balance as at 30 June 2013 10,103,868 6,117,996 126,500 540,000 190,041 3,425,770 20,504,175
The annexed notes 1 to 19 form an integral part of these interim condensed financial statements.
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
8
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
30-June 30-June
Note 2013 2012
CASH FLOW FROM OPERATING ACTIVITIES (Rupees in '000)
Restated
Profit before taxation 3,696,142 4,462,934
Dividend income (70,322) (235,699)
3,625,820 4,227,235
Adjustments for non-cash changes:
Depreciation 431,992 393,319
Amortisation 25,348 14,092
Provision against non-performing loans and advances 254,239 379,497
Gain on sale / redemption of securities (372,408) (68,785)
Provision for defined benefit plan 60,000 55,551
Charge for compensated absences 20,111 19,272
Gain on disposal of operating fixed assets (36,529) (27,020)
Reversal of provision against off-balance sheet items (492) 00
382,261 765,926
4,008,081 4,993,161
Increase in operating assets
Lendings to financial institutions (1,518,003) 00
Advances (3,215,427) (7,118,296)
Other assets (501,236) (98,321)
(5,234,666) (7,216,617)
Increase / (decrease) in operating liabilities
Bills payable 3,362,657 402,542
Borrowings (6,054,506) (3,051,649)
Deposits and other accounts 24,380,989 15,089,790
Other liabilities (excluding provision for taxation) 223,036 (46,003)
21,912,176 12,394,680
Cash inflow before tax 20,685,591 10,171,224
Income tax paid (1,660,341) (1,823,217)
Net cash flow from operating activities 19,025,250 8,348,007
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in available for sale securities (3,787,115) (32,077,174)
Net investments in held to maturity securities (15,463,371) 22,439,523
Net investments in associates 132,409 (200,000)
Dividend received 70,322 239,688
Investments in operating fixed assets (652,520) (559,026)
Sale proceeds of operating fixed assets 40,688 32,675
Net cash used in investing activities (19,659,587) (10,124,314)
CASH FLOW FROM FINANCING ACTIVITIES
Payments of sub-ordinated loans (1,700) (450,532)
Dividend paid (2,972,753) (2,149,644)
Net cash used in financing activities (2,974,453) (2,600,176)
Exchange adjustment on translation of net investment in foreign branch 22,167 32,302
Decrease in cash and cash equivalents (3,586,623) (4,344,181)
Cash and cash equivalents at the beginning of the period 37,209,056 29,652,920
Cash and cash equivalents at the end of the period 14 33,622,433 25,308,739
The annexed notes 1 to 19 form an integral part of these interim condensed financial statements.
INTERIM CONDENSED CASH FLOW STATEMENT (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
9
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
1. STATUS AND NATURE OF BUSINESS
Bank AL Habib Limited (the Bank) was incorporated in Pakistan on 15 October 1991 as a public
limited company under the Companies Ordinance, 1984 having its registered office at 126-C, Old
Bahawalpur Road, Multan, with principal place of business being in Karachi. Its shares are listed
on all the Stock Exchanges in Pakistan. It is a scheduled bank principally engaged in the business
of commercial banking with a network of 316 branches (31 December 2012: 308), 88 sub-branches
(31 December 2012: 82) and 03 representative offices (31 December 2012 :02). The branch
network of the Bank includes a wholesale branch in the Kingdom of Bahrain (31 December 2012:
01), a branch in Karachi Export Processing Zone (31 December 2012 :01) and 15 Islamic Banking
branches (31 December 2012: 13).
2. STATEMENT OF COMPLIANCE
2.1 These interim condensed financial statements of the Bank have been prepared, in accordance
with the requirements of the International Accounting Standard 34 - 'Interim Financial Reporting',
provisions of the Companies Ordinance, 1984, Banking Companies Ordinance,1962 and directives
issued by the Securities and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan
(SBP). In case where requirements differ, the provisions of the Companies Ordinance, 1984, the
Banking Companies Ordinance, 1962 and the said directives have been followed.
2.2 SBP vide BSD Circular No. 10, dated 26 August 2002 has deferred the applicability of International
Accounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and IAS
40, "Investment Property" for banking companies till further instructions. Further, according to the
notification of SECP dated 28 April 2008, IFRS - 7 "Financial Instruments: Disclosure" has not
been made applicable for banks. Accordingly, the requirements of these standards have not been
considered in the preparation of these financial statements. However, investments have been
classified, accounted for and valued in accordance with the requirement of various circulars issued
by SBP.
2.3 The disclosures made in these interim condensed financial statements have been limited based
on the format prescribed by SBP vide BSD Circular Letter No. 2, dated 12 May 2004 and IAS 34
"Interim Financial Reporting" and do not include all the information required in the annual financial
statements. Accordingly, these interim condensed financial statements should be read in conjunction
with the annual financial statements of the Bank for the year ended 31 December 2012.
2.4 These are separate interim condensed financial statements of the Bank in which investments in
subsidiary and associates are reported on the basis of direct equity interest and are not consolidated
or accounted for by using equity method of accounting.
3. ACCOUNTING POLICIES
The accounting policies adopted in the preparation of these interim condensed financial statements
are consistent with those of the previous financial year except as follows:
New and amended standards
The Bank has adopted the following revised standard, amendments and interpretation of IFRSs
which became effective on 01 January 2013 :
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
10
IAS 1 - Presentation of Financial Statements Presentation of items of other comprehensive
income (Amendment)
IAS 19 - Employee Benefits (Revised)
IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine
The adoption of the above revision and amendments of the standards did not have any effect on
the financial statements except for as described in note 3.1 below:
Further, certain new standards have been issued by IASB which are effective for accounting
periods beginning on or after 01 January 2013 but are yet to be notified by the Securities Exchange
Commission of Pakistan (SECP) for the purpose of applicability in Pakistan.
3.1 Change in accounting policy
During the period, the Bank has adopted Revised IAS 19 - 'Employee Benefits'. As per revised
standard, actuarial gains and losses for defined benefit plans are recognised in other comprehensive
income when they occur. Amounts recorded in profit and loss are limited to current and past service
costs, gains or losses on settlements, and net interest income / (expense). All other changes in
the net defined benefit asset / (liability) are recognised in other comprehensive income with no
subsequent recycling to profit and loss.
The adoption of above revised standard has resulted in change in accounting policy of the Bank
related to recognition of actuarial gains and losses to recognise actuarial gains and losses in total
in other comprehensive income in the period in which they occur. Previously, actuarial gains or
losses in excess of 10% of the actuarial liability or plan assets were recognised in profit and loss
account over the expected average working life of the employees. The impact of the said changes
on these interim condensed financial statements is as under:
Rupees in '000
Net decrease in unappropriated profit as at 1 January 2012 114,128
Net increase in profit for the period ended 30 June 2012 2,892
Net decrease in other comprehensive income for the period ended 30 June 2012 2,595
Net increase in defined benefit liability as at 31 December 2012 174,668
Net decrease in deferred tax liability as at 31 December 2012 61,134
11
30-June 2013 (Un-Audited) 31-December 2012 (Audited)
Note Held by Given as Total Held by Given as Total
Bank Collateral Bank Collateral
(Rupees in '000)
4. INVESTMENTS
Available for Sale Securities
Market Treasury Bills 121,473,825 46,219,500 167,693,325 114,006,833 50,291,508 164,298,341
Pakistan Investment Bonds 13,486,928 00 13,486,928 13,446,569 00 13,446,569
Foreign Currency Bonds 1,156,152 00 1,156,152 1,108,499 00 1,108,499
Sukuks 3,414,129 00 3,414,129 3,508,008 00 3,508,008
Ordinary shares of listed companies 1,266,370 00 1,266,370 265,972 00 265,972
Ordinary shares of unlisted companies 39,570 00 39,570 39,570 00 39,570
Listed term finance certificates 614,228 00 614,228 502,829 00 502,829
Unlisted term finance certificates 532,770 00 532,770 532,820 00 532,820
Open ended mutual funds 1,175,000 00 1,175,000 1,525,000 00 1,525,000
143,158,972 46,219,500 189,378,472 134,936,100 50,291,508 185,227,608
Held to Maturity Securities 4.1
Market Treasury Bills 59,107,435 00 59,107,435 48,660,340 00 48,660,340
Pakistan Investment Bonds 17,716,050 00 17,716,050 12,503,552 00 12,503,552
Sukuks 222,728 00 222,728 229,705 00 229,705
Listed term finance certificates 99,353 00 99,353 246,931 00 246,931
Unlisted term finance certificates 00 00 00 41,667 00 41,667
77,145,566 00 77,145,566 61,682,195 00 61,682,195
Associates
Habib Sugar Mills Limited 180,977 00 180,977 180,977 00 180,977
Habib Asset Management Limited 60,000 00 60,000 33,750 00 33,750
First Habib Income Fund 400,000 00 400,000 550,000 00 550,000
First Habib Stock Fund 50,000 00 50,000 50,000 00 50,000
First Habib Cash Fund 300,000 00 300,000 300,000 00 300,000
First Habib Islamic Balanced Fund 25,000 00 25,000 25,000 00 25,000
1,015,977 00 1,015,977 1,139,727 00 1,139,727
Subsidiary
AL Habib Capital Markets
(Private) Limited 200,000 00 200,000 200,000 00 200,000
Investments at cost 221,520,515 46,219,500 267,740,015 197,958,022 50,291,508 248,249,530
Provision for diminution in
the value of investments (5,700) 00 (5,700) (5,700) 00 (5,700)
Investments (net of provisions) 221,514,815 46,219,500 267,734,315 197,952,322 50,291,508 248,243,830
Surplus on revaluation of
available for sale investments - net 9.2 1,792,716 64,981 1,857,697 1,419,923 90,322 1,510,245
Investments after revaluation of
available for sale investments 223,307,531 46,284,481 269,592,012 199,372,245 50,381,830 249,754,075
4.1 The aggregate market value of held to maturity securities as on 30 June 2013 amounts to Rs. 78,271 (31 December 2012: 62,824) million.
12
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in '000)
5. ADVANCES
Loans, cash credits, running finances, etc.
In Pakistan 129,110,506 130,503,697
Outside Pakistan 8,808,964 8,203,074
137,919,470 138,706,771
Net investment in finance lease / ijarah financing
In Pakistan 685,714 501,124
Outside Pakistan 00 00
685,714 501,124
Bills discounted and purchased
(excluding market treasury bills)
Payable in Pakistan 1,970,619 1,924,843
Payable outside Pakistan 16,105,531 12,329,922
18,076,150 14,254,765
Advances - gross 156,681,334 153,462,660
Provision against non-performing loans and advances
Specific provision 5.1 (3,316,847) (3,062,933)
General provision against consumer advances
(as per SBP regulations) 5.2 (34,631) (31,059)
General provision 5.3 (2,500,000) (2,500,000)
(5,851,478) (5,593,992)
Advances - net of provisions 150,829,856 147,868,668
5.1 Advances include Rs. 3,845.700 (31 December 2012: Rs. 3,705.730) million which have been
placed under non-performing status as detailed below:
13
30-June 2013 (Un-Audited)
Classified advances Provision req uired Provision held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
(Rupees in '000)
Category of classification
Other assets
especially mentioned 12,885 00 12,885 476 00 476 476 00 476
Substandard 32,636 00 32,636 8,159 00 8,159 8,159 00 8,159
Doubtful 476,658 404,535 881,193 238,329 202,267 440,596 233,179 202,267 435,446
Loss 2,917,661 1,325 2,918,986 2,858,885 1,325 2,860,210 2,871,441 1,325 2,872,766
3,439,840 405,860 3,845,700 3,105,849 203,592 3,309,441 3,113,255 203,592 3,316,847
14
31-December 2012 (Audited)
Classified advances Provision required Provision held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
(Rupees in '000)
Category of classification
Other assets
especially mentioned 0 0 0 0 0 0 0 0 0
Substandard 379,505 92,802 472,307 94,876 23,200 118,076 94,876 23,200 118,076
Doubtful 83,246 0 83,246 41,626 0 41,626 41,626 0 41,626
Loss 3,148,885 1,292 3,150,177 2,901,939 1,292 2,903,231 2,901,939 1,292 2,903,231
3,611,636 94,094 3,705,730 3,038,441 24,492 3,062,933 3,038,441 24,492 3,062,933
5.2 The Bank has made general provision for consumer portfolio as required by SBP's
Prudential Regulations amounting to Rs. 34.631 (31 December 2012: Rs. 31.059)
million.
5.3 In line with its prudent policies, the Bank has also made general provision of Rs. 2,500
(31 December 2012: Rs. 2,500) million against its loans and advances portfolio. This
general provision is in addition to the requirements of the Prudential Regulations.
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
6. OPERATING FIXED ASSETS
6.1 Additions during the period - at cost:
Leasehold land 00 391
Buildings on leasehold land 65,319 136,972
Improvements to leasehold buildings 132,345 34,778
Furniture and fixtures 25,538 14,591
Electrical, office and computer equipments 207,759 173,112
Vehicles 144,677 79,984
Intangible assets 20,481 2,321
596,119 442,149
6.2 Deletions during the period - at cost:
Furniture and fixtures 4,750 1,262
Electrical, office and computer equipments 37,378 9,791
Vehicles 51,538 37,993
93,666 49,046
15
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
7. BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Export refinance scheme 13,888,554 14,138,447
Long term financing for export oriented projects 225,211 369,695
Long term financing for imported and locally
manufactured plant and machinery 2,699,878 3,015,612
Financing facility for storage of agricultural produce 152,028 47,703
16,965,671 17,571,457
Repurchase agreement borrowings 46,253,070 50,331,048
63,218,741 67,902,505
Unsecured
Borrowings from financial institutions 348,808 1,719,550
Overdrawn nostros 157,808 00
506,616 1,719,550
63,725,357 69,622,055
8. DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits 87,806,946 96,079,552
Savings deposits 118,271,554 105,561,063
Current accounts - Remunerative 35,540,051 29,061,770
Current accounts - Non-remunerative 115,402,005 104,284,355
357,020,556 334,986,740
Financial institutions
Remunerative deposits 7,234,457 4,949,283
Non-remunerative deposits 518,847 456,848
7,753,304 5,406,131
364,773,860 340,392,871
9. SURPLUS ON REVALUATION OF ASSETS
- NET OF TAX
Operating fixed assets 9.1 1,741,576 1,760,240
Available for sale investments 9.2 1,229,541 995,851
2,971,117 2,756,091
9.1 Operating fixed assets
Surplus on revaluation of land and buildings 2,347,595 2,376,309
Related deferred tax liability (606,019) (616,069)
1,741,576 1,760,240
9.2 Available for sale investments
Federal Government Securities 1,707,842 1,386,550
Fully paid-up ordinary shares 66,693 21,123
Term finance certificates, sukuks and bonds 2,833 941
Open ended mutual funds 80,329 101,631
1,857,697 1,510,245
Related deferred tax (628,156) (514,394)
1,229,541 995,851
10. CONTINGENCIES AND COMMITMENTS
10.1Direct Credit Substitutes
Financial institutions 822,223 166,232
Others 109,625 348,728
931,848 514,960
10.2Transaction-related Contingent Liabilities
Government 11,294,982 9,446,751
Financial institutions 105,613 68,497
Others 6,477,888 6,279,180
17,878,483 15,794,428
16
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in 000)
17
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
10.3Trade-related Contingent Liabilities
Letters of credit 62,258,987 50,183,933
Acceptances 8,716,229 8,647,034
70,975,216 58,830,967
10.4Other Contingencies
There is no significant change during the period in the other contingencies as disclosed
in the annual financial statements of the Bank for the year ended 31 December 2012.
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
10.5 Commitments in respect of forward lending
Commitments to extend credit 651,179 472,257
10.6 Commitments in respect of forward exchange
contracts
Purchase 18,323,718 15,272,338
Sale 17,154,417 16,888,512
The maturities of above contracts are spread over a period upto one year.
10.7 Commitments for the acq uisition of operating
fixed assets 180,372 146,070
18
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Un-Audited)
(Rupees in 000)
11. MARK-UP / RETURN / INTEREST EARNED
On loans and advances to:
Customers 6,500,913 6,699,333 3,134,808 3,324,005
Financial institutions 108,761 84,078 86,627 58,725
6,609,674 6,783,411 3,221,435 3,382,730
On investments:
Available for sale securities 9,195,456 8,972,460 4,624,207 5,830,107
Held to maturity securities 3,342,122 4,987,639 1,650,783 1,031,308
12,537,578 13,960,099 6,274,990 6,861,415
On deposits with financial institutions 35,619 34,590 17,645 19,988
On securities purchased under
resale agreements 24,972 53,717 9,736 30,183
On call money lendings 959 700 368 313
19,208,802 20,832,517 9,524,174 10,294,629
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Un-Audited)
(Rupees in 000)
12. MARK-UP / RETURN / INTEREST EXPENSED
Deposits 8,983,575 9,941,675 4,510,448 5,060,502
Sub-ordinated loans 462,362 507,927 230,029 251,904
Repurchase agreement borrowings 1,879,368 1,749,129 879,991 669,503
Borrowings from SBP 716,777 735,637 354,131 355,339
Other borrowings 155,568 336,359 66,555 143,588
12,197,650 13,270,727 6,041,154 6,480,836
19
15. RELATED PARTY TRANSACTIONS
Related parties of the Bank comprise subsidiaries, associates (including entities
having directors in common with the Bank), retirement benefit funds, major
share holders, directors and key management personnel and their close family
members.
Transactions with related parties are carried out an arm's length basis in terms
of the policy as approved by the Board of Directors. The transactions with
employees of the Bank are carried out in accordance with the terms of their
employment.
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
13. BASIC AND DILUTED EARNINGS PER SHARE
Restated
Profit after taxation 2,433,334 2,511,690
(Number)
Weighted average number of ordinary shares 1,010,386,742 1,010,386,742
(Rupees)
Restated
Basic and diluted earnings per share 2.41 2.49
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
14. CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 31,625,770 22,776,627
Balances with other banks 2,154,471 3,242,002
Overdrawn nostros (157,808) (709,890)
33,622,433 25,308,739
20
30-June 2013 (Un-Audited)
Subsidiary Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Deposits
At the beginning of the period 6,320 1,691,582 146,594 294,767 151,603 2,290,866
Placement during the period 1,380,565 39,466,725 455,548 655,881 1,073,202 43,031,921
Withdrawal during the period (1,272,023) (39,409,137) (402,769) (592,019) (1,050,635) (42,726,583)
At the end of the period 114,862 1,749,170 199,373 358,629 174,170 2,596,204
Advances
At the beginning of the period 7,166 1,615,380 351 28,605 00 1,651,502
Given during the period 5,813,958 9,586,440 2,000 28,491 00 15,430,889
Repaid during the period (5,807,074) (9,592,094) (2,255) (16,538) 00 (15,417,961)
At the end of the period 14,050 1,609,726 96 40,558 00 1,664,430
Investments
At the beginning of the period 200,000 1,139,727 00 00 00 1,339,727
Investment made during the period 00 26,250 00 00 00 26,250
Redeemed during the period 00 (150,000) 00 00 00 (150,000)
At the end of the period 200,000 1,015,977 00 00 00 1,215,977
Contingencies and commitments 00 430,105 00 00 00 430,105
Transactions for the period / year and balances outstanding as at the period / year end with related parties are summarised as
below:
31-December 2012 (Audited)
Subsidiary Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Deposits
At the beginning of the year 1,494 1,438,356 86,815 275,992 118,882 1,921,539
Placement during the year 429,868 75,338,485 631,362 1,169,514 7,365,961 84,935,190
Withdrawal during the year (425,042) (75,085,259) (571,583) (1,150,739) (7,333,240) (84,565,863)
At the end of the year 6,320 1,691,582 146,594 294,767 151,603 2,290,866
Advances
At the beginning of the year 9,380 1,404,261 426 30,252 00 1,444,319
Given during the year 3,158,394 16,218,504 2,976 41,608 00 19,421,482
Repaid during the year (3,160,608) (16,007,385) (3,051) (43,255) 00 (19,214,299)
At the end of the year 7,166 1,615,380 351 28,605 00 1,651,502
Investments
At the beginning of the year 200,000 914,727 00 00 00 1,114,727
Investment made during the year 00 225,000 00 00 00 225,000
Redeemed during the year 00 00 00 00 00 00
At the end of the year 200,000 1,139,727 00 00 00 1,339,727
Contingencies and commitments 00 532,693 00 00 00 532,639
21
Half year ended 30-June 2013 (Un-Audited)
Subsidiary Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Purchase of fixed assets 00 1,047 00 00 00 1,047
Sale of securities 00 00 00 00 00 00
Redemption of mutual funds units 00 158,659 00 00 00 158,659
Purchase of mutual fund units/securities 00 26,250 00 00 00 26,250
Mark-up earned 578 71,782 00 771 00 73,131
Mark-up expensed 428 34,257 4,242 9,852 9,038 57,817
Bank charges and commission 1 2,395 5 57 00 2,458
Gain on sale of securities 00 8,659 00 00 00 8,659
Salaries and allowances 00 00 00 89,945 00 89,945
Bonus 00 00 00 8,542 00 8,542
Contribution to defined
contribution plan 00 00 00 3,525 00 3,525
Contribution to defined
benefit plan 00 00 00 7,442 00 7,442
Staff provident fund 00 00 00 00 90,469 90,469
Staff gratuity fund 00 00 00 00 60,000 60,000
Directors' fee 00 00 1,250 00 00 1,250
Insurance claim received 00 5,500 00 00 00 5,500
Insurance premium paid 00 77,521 00 00 00 77,521
Dividend income 00 23,605 00 00 00 23,605
Rental income 1,622 00 00 00 00 1,622
Other income 250 00 00 00 00 250
Commission expensed 596 00 00 00 00 596
Other expensed 360 00 00 00 00 360
Half year ended 30-June 2012 (Un-Audited)
Subsidiary Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Purchase of fixed assets 00 838 00 00 00 838
Sale of securities 00 3,436 00 00 00 3,436
Redemption of mutual funds units 00 00 00 00 00 00
Purchase of mutual fund units/securities 00 200,000 00 00 00 200,000
Mark-up earned 239 77,794 2 929 00 78,964
Mark-up expensed 439 29,912 3,871 10,868 8,191 53,281
Bank charges and commission 36 2,346 4 52 00 2,438
Gain on sale of securities 00 4 00 00 00 4
Salaries and allowances 00 00 00 76,986 00 76,986
Bonus 00 00 00 7,924 00 7,924
Contribution to defined
contribution plan 00 00 00 3,259 00 3,259
Contribution to defined
benefit plan 00 00 00 5,791 00 5,791
Staff provident fund 00 00 00 00 77,334 77,334
Staff gratuity fund 00 00 00 00 55,551 55,551
Directors' fee 00 00 1,225 00 00 1,225
Insurance claim received 00 9,839 00 00 00 9,839
Insurance premium paid 00 129,117 00 00 00 129,117
Dividend income 00 65,261 00 00 00 65,261
Rental income 1,475 00 00 00 00 1,475
Other income 83 00 00 00 00 83
Commission expensed 123 00 00 00 00 123
Other expensed 259 00 00 00 00 259
22
16. ISLAMIC BANKING BUSINESS
The Bank is operating 15 (31 December 2012: 13) Islamic Banking branches in Pakistan.
The statement of financial position of these branches as at 30 June 2013 is as follows:
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in 000)
ASSETS
Cash and balances with treasury banks 529,586 322,418
Balances with and due from financial institutions 3,963 2,786
Investments 1,531,691 1,573,586
Islamic financing and related assets 16.1 8,995,069 7,698,981
Operating fixed assets 49,167 41,123
Other assets 214,136 254,653
11,323,612 9,893,547
LIABILITIES
Bills payable 50,773 44,896
Due to financial institutions 1,162,666 1,081,647
Deposits and other accounts 6,904,228 6,824,034
Current accounts 1,547,764 1,469,285
Saving accounts 1,612,475 713,014
Term deposits 3,714,678 3,981,713
Others 9,267 58,863
Deposits from financial institutions-remunerative 19,553 600,625
Deposits from financial institutions-non-remunerative 491 534
Due to Head office 1,760,000 360,000
Other liabilities 308,097 315,081
(10,185,764 ) (8,625,658)
NET ASSETS 1,137,848 1,267,889
REPRESENTED BY:
Islamic banking fund 1,000,000 950,000
Unremitted profit 135,928 310,177
1,135,928 1,260,177
Surplus on revaluation of assets 1,920 7,712
1,137,848 1,267,889
23
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
16.1 Islamic financing and related assets
Murabaha 4,234,601 3,125,006
Ijarah 3,708 3,926
Net book value of assets / investments in ijarah
under IFAS 2 264,539 307,173
Diminishing musharika 2,832,843 2,851,554
Export refinance murabaha 229,166 81,600
Export refinance istisna 952,500 1,000,047
Istisna 262,050 44,644
Gross financing 8,779,407 7,413,950
Less: general provisioning against consumer financing (285) (231)
Net financing 8,779,122 7,413,719
Advance against murabaha 215,947 277,979
Advance against ijarah 00 7,283
Islamic financing and related assets - net off provision 8,995,069 7,698,981
16.1.1 Islamic financing and related assets
Financings / inventory / receivables 8,779,407 7,413,950
Advances 215,947 285,262
Less: general provisioning against consumer financing (285) (231)
8,995,069 7,698,981
24
17. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
The segment analysis with respect to business activity is as follows:
Half year ended 30-June 2013 (Un-Audited)
Retail Commercial Inter Segment Total
Bank ing Bank ing Elimination
(Rupees in 000)
Total income 9,982,420 19,362,010 (8,325,220) 21,019,210
Total expenses (8,759,162) (16,889,126) 8,325,220 (17,323,068)
Net income 1,223,258 2,472,884 000 3,696,142
As of 30-June 2013 (Un-Audited)
Segment assets 337,799,136 458,027,106 (321,064,055) 474,762,187
Segment liabilities 336,662,825 435,688,125 (321,064,055) 451,286,895
Half year ended 30-June 2012 (Un-Audited)
Retail Commercial Inter Segment Total
Banking Banking Elimination
(Rupees in 000)
Restated
Total income 11,171,353 20,450,770 (9,307,258) 22,314,865
Total expenses (9,653,363) (17,505,826) 9,307,258 (17,851,931)
Net income 1,517,990 2,944,944 000 4,462,934
As of 30-June 2012 (Un-Audited)
Segment assets 277,716,589 387,156,369 (267,759,522) 397,113,436
Segment liabilities 276,489,279 368,559,397 (267,759,522) 377,289,154
18. DATE OF AUTHORISATION
These interim condensed financial statements were authorised for issue by the Board
of Directors in their meeting held on 29 August 2013.
19. GENERAL
19.1 Figures have been rounded off to the nearest thousand rupees.
19.2 Figures of the profit and loss account for the quarters ended 30 June 2013 and 30
June 2012 have not been subjected to limited scope review by the auditors.
19.3 Corresponding figures have been re-arranged / re-classified wherever necessary, for
the purpose of comparison. There are no major reclassifications to report.
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
25
Bank AL Habib Limited
and
Subsidiary Company
Consolidated Financial Statements
26
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in '000)
Restated
ASSETS
Cash and balances with treasury banks 31,625,786 27,464,345
Balances with other banks 2,164,125 9,747,248
Lendings to financial institutions 2,511,984 993,981
Investments 4 269,802,989 249,923,504
Advances 5 150,817,404 147,859,828
Operating fixed assets 6 11,405,389 11,211,423
Deferred tax assets 00 000
Other assets 6,743,380 6,153,613
475,071,057 453,353,942
LIABILITIES
Bills payable 8,619,848 5,257,191
Borrowings 7 63,725,616 69,622,055
Deposits and other accounts 8 364,659,033 340,386,558
Sub-ordinated loans 6,487,600 6,489,300
Liabilities against assets subject to finance lease 00 000
Deferred tax liabilities 1,997,359 1,868,307
Other liabilities 5,807,964 5,665,650
451,297,420 429,289,061
NET ASSETS 23,773,637 24,064,881
REPRESENTED BY :
Share capital 10,103,868 10,103,868
Reserves 6,974,537 6,464,546
Unappropriated profit 3,593,863 4,601,691
Eq uity attributable to the shareholders of the Holding Company 20,672,268 21,170,105
Non-controlling interest 112,551 106,753
Total eq uity 20,784,819 21,276,858
Surplus on revaluation of assets - net of tax 9 2,988,818 2,788,023
23,773,637 24,064,881
CONTINGENCIES AND COMMITMENTS 10
The annexed notes 1 to 19 form an integral part of these consolidated interim condensed financial statements.
CONSOLIDATED INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2013
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
27
CONSOLIDATED INTERIM CONDENSED PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
Half year ended Quarter ended
Note 30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Rupees in '000)
Restated Restated
Mark-up / return / interest earned 11 19,208,262 20,838,730 9,524,043 10,295,797
Mark-up / return / interest expensed 12 (12,197,227) (13,270,288) (6,040,838) (6,480,551)
Net mark-up / return / interest income 7,011,035 7,568,442 3,483,205 3,815,246
Provision against non-performing loans and advances (254,239) (379,497) (92,141) (110,319)
Provision for diminution in the value of investments 00 14 00 00
Bad debts written-off directly (96) 00 (96) 00
(254,335) (379,483) (92,237) (110,319)
Net mark-up / return / interest income after provisions 6,756,700 7,188,959 3,3980,968 3,704,927
NON MARK-UP / INTEREST INCOME
Fee, commission and brokerage income 853,447 756,172 428,832 381,595
Dividend income 47,620 171,206 8,728 116,597
Income from dealing in foreign currencies 266,698 213,899 137,073 91,977
Gain on sale / redemption of securities-net 385,887 69,138 320,507 68,783
Unrealised gain / (loss) on revaluation of
investments classified as held for trading 00 00 00 00
Share of profit from associates 79,829 66,786 54,088 (1,871)
Other income 263,377 218,830 133,074 110,842
Total non mark-up / interest income 1,896,858 1,496,031 1,082,302 767,923
8,653,558 8,684,990 4,473,270 4,472,850
NON MARK-UP / INTEREST EXPENSES
Administrative expenses (4,813,179) (4,130,199) (2,441,703) (2,014,066)
Other provisions / write-offs 492 00 10,864 00
Other charges (79,004) (91,149) (43,631) (45,792)
Total non mark-up / interest expenses (4,891,691) (4,221,348) (2,474,470) (2,059,858)
3,761,867 4,463,642 1,998,800 2,412,992
Extra-ordinary / unusual items 00 00 00 00
PROFIT BEFORE TAXATION 3,761,867 4,463,642 1,998,800 2,412,992
Taxation - Current (1,248,226) (1,619,300) (642,412) (834,290)
- Prior years 00 (57,437) 00 (57,437)
- Deferred (15,351) (274,416) (16,841) (252,424)
(1,263,577) (1,951,153) (659,253) (1,144,151)
PROFIT AFTER TAXATION 2,498,290 2,512,489 1,339,547 1,268,841
Attributable to:
Shareholders of the Holding Company 2,492,492 2,512,731 1,333,936 1,269,249
Non-controlling interest 5,798 (242) 5,611 (408)
2,498,290 2,512,489 1,339,547 1,268,841
Basic and diluted earnings per share attributable
to eq uity holders of the Holding Company - Rupees 13 2.47 2.49 1.32 1.26
The annexed notes 1 to 19 form an integral part of these consolidated interim condensed financial statements.
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Rupees in '000)
Restated Restated
Net profit for the period 2,498,290 2,512,489 1,339,547 1,268,841
Other comprehensive income
Items to be reclassified to profit or
loss in subsequent periods:
Effect of foreign currency translation of net
investment in foreign branch 22,167 32,302 9,558 26,892
Items not to be reclassified to profit or
loss in subsequent periods:
Actuarial loss on defined benefit plan 00 (3,992) 00 (1,996)
Income tax effect 00 1,397 00 699
00 (2,595) 00 (1,297)
Total comprehensive income for the period 2,520,457 2,542,196 1,349,105 1,294,436
Attributable to:
Shareholders of the Holding Company 2,514,659 2,542,438 1,343,494 1,294,844
Non-controlling interest 5,798 (242) 5,611 (408)
2,520,457 2,542,196 1,349,105 1,294,436
The annexed notes 1 to 19 form an integral part of these consolidated interim condensed financial statements.
28
CONSOLIDATED INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
A ttrib uta b le to th e sh a reh olders of th e H olding Com pa ny
Revenue Reserves
Sh a re Sta tutory Specia l G enera l F oreig n Currency U na ppro T ota l N on- T ota l
Ca pita l Reserve Reserve Reserve T ra nsla tion - pria ted controlling
Reserve P rofit interest
(Rupees in 000)
Balance as at 01 January 2012 8 ,7 8 5 ,9 7 2 4,5 40,8 6 9 126 ,5 00 5 40,000 117 ,320 3,7 6 7 ,9 9 8 17 ,8 7 8 ,6 5 9 109 ,7 8 2 17 ,9 8 8 ,441
Effect of retrospective change in accounting
policy of recognising actuarial gains and
losses on defined benefit plan
- net of tax (note 3.1) 00 00 00 00 00 (114,128 ) (114,128 ) 00 (114,128 )
Balance as at 01 January 2012 - restated 8 ,7 8 5 ,9 7 2 4,5 40,8 6 9 126 ,5 00 5 40,000 117 ,320 3,6 5 3,8 7 0 17 ,7 6 4,5 31 109 ,7 8 2 17 ,8 7 4,313
Profit for the period - restated 00 00 00 00 00 2,5 12,7 31 2,5 12,7 31 (242) 2,5 12,48 9
Other comprehensive income - restated 00 00 00 00 32,302 (2,5 9 5 ) 29 ,7 07 00 29 ,7 07
T otal comprehensive income - restated 00 00 00 00 32,302 2,5 10,136 2,5 42,438 (242) 2,5 42,19 6
T ransfer from surplus on revaluation of
of fixed assets - net of tax 00 00 00 00 00 18 ,7 06 18 ,7 06 00 18 ,7 06
T ransfer to statutory reserve 00 5 01,7 6 0 00 00 00 (5 01,7 6 0) 00 00 00
C ash dividend (Rs. 2.5 per share) 00 00 00 00 00 (2,19 6 ,49 3) (2,19 6 ,49 3) 00 (2,19 6 ,49 3)
Issue of bonus shares in the ratio of 15
shares for every 100 shares held 1,317 ,8 9 6 00 00 00 00 (1,317 ,8 9 6 ) 00 00 00
Balance as at 30 June 2012 - restated 10,103,8 6 8 5 ,042,6 29 126 ,5 00 5 40,000 149 ,6 22 2,16 6 ,5 6 3 18 ,129 ,18 2 109 ,5 40 18 ,238 ,7 22
Profit for the period - restated 00 00 00 00 00 3,006 ,6 02 3,006 ,6 02 (2,7 8 7 ) 3,003,8 15
Other comprehensive income - restated 00 00 00 00 18 ,25 2 (2,5 9 5 ) 15 ,6 5 7 00 15 ,6 5 7
T otal comprehensive income for the period 00 00 00 00 18 ,25 2 3,004,007 3,022,25 9 (2,7 8 7 ) 3,019 ,47 2
T ransfer from surplus on revaluation of fixed
assets - net of tax 00 00 00 00 00 18 ,6 6 4 18 ,6 6 4 00 18 ,6 6 4
T ransfer to statutory reserve 00 5 8 7 ,5 43 00 00 00 (5 8 7 ,5 43) 00 00 00
Balance as at 31 D ec. 2012 - restated 10,103,8 6 8 5 ,6 30,17 2 126 ,5 00 5 40,000 16 7 ,8 7 4 4,6 01,6 9 1 21,17 0,105 106 ,7 5 3 21,27 6 ,8 5 8
Profit for the period 00 00 00 00 00 2,49 2,49 2 2,49 2,49 2 5 ,7 9 8 2,49 8 ,29 0
Other comprehensive income 00 00 00 00 22,16 7 00 22,16 7 00 22,16 7
T otal comprehensive income for the period 00 00 00 00 22,16 7 2,49 2,49 2 2,5 14,6 5 9 5 ,7 9 8 2,5 20,45 7
T ransfer from surplus on revaluation of fixed
assets - net of tax 00 00 00 00 00 18 ,6 6 4 18 ,6 6 4 00 18 ,6 6 4
T ransfer to statutory reserve 00 48 7 ,8 24 00 00 00 (48 7 ,8 24) 00 00 00
C ash dividend (Rs. 3 per share) 00 00 00 00 00 (3,031,16 0) (3,031,16 0) 00 (3,031,16 0)
Balance as at 30 June 2013 10,103,8 6 8 6 ,117 ,9 9 6 126 ,5 00 5 40,000 19 0,041 3,5 9 3,8 6 3 20,6 7 2,26 8 112,5 5 1 20,7 8 4,8 19
The annexed notes 1 to 19 form an integral part of these consolidated interim condensed financial statements.
CONSOLIDATED INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
29
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
30-June 30-June
Note 2013 2012
CASH FLOW FROM OPERATING ACTIVITIES (Rupees in '000)
Restated
Profit before taxation 3,761,867 4,463,642
Dividend income (47,620) (171,206)
3,714,247 4,292,436
Adjustments for non-cash changes:
Depreciation 432,923 393,193
Amortisation 25,348 14,092
Provision against non-performing loans and advances 254,239 379,497
Reversal for diminution in the value of investments 00 (14)
Gain on sale / redemption of securities (385,887) (69,138)
Provision for defined benefit plan 60,000 55,551
Charge for compensated absences 20,111 19,272
Share of profit from associates (79,829) (66,786)
Gain on disposal of operating fixed assets (40,892) (27,340)
Provision against off-balance sheet items (492) 00
Financial charges on leased assets 00 1
285,521 698,328
3,999,768 4,990,764
Increase in operating assets
Lendings to financial institutions (1,518,003) 00
Advances (3,211,815) (7,127,727)
Other assets (502,606) (58,846)
(5,232,424) (7,186,573)
Increase / (decrease) in operating liabilities
Bills payable 3,362,657 402,542
Borrowings (6,054,247) (3,051,649)
Deposits and other accounts 24,272,475 15,075,866
Other liabilities (excluding provision for taxation) 326,803 (133,984)
21,907,688 12,292,775
Cash inflow before tax 20,675,032 10,096,966
Income tax paid (1,661,810) (1,825,075)
Net cash flow from operating activities 19,013,222 8,271,891
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in available for sale securities (3,773,189) (32,182,218)
Net investments in held to maturity securities (15,463,371) 22,620,135
Net investments in associates 156,014 (134,672)
Dividend received 47,620 175,195
Investments in operating fixed assets (652,551) (559,182)
Sale proceeds of operating fixed assets 45,051 33,005
Net cash used in investing activities (19,640,426) (10,047,737)
CASH FLOW FROM FINANCING ACTIVITIES
Payments of sub-ordinated loans (1,700) (450,532)
Payment of lease obligations 00 (29)
Dividend paid (2,972,753) (2,149,644)
Net cash used in financing activities (2,974,453) (2,600,205)
Exchange adjustment on translation of net investment in foreign branch 22,167 32,302
Decrease in cash and cash equivalents (3,579,490) (4,343,749)
Cash and cash equivalents at the beginning of the period 37,211,593 29,654,228
Cash and cash equivalents at the end of the period 14 33,632,103 25,310,479
The annexed notes 1 to 19 form an integral part of these consolidated interim condensed financial statements.
CONSOLIDATED INTERIM CONDENSED CASH FLOW STATEMENT (UN-AUDITED)
FOR THE HALF YEAR ENDED 30 JUNE 2013
30
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman
1. STATUS AND NATURE OF BUSINESS
The Group consists of :
- Bank AL Habib Limited (Holding Company)
- AL Habib Capital Markets (Private) Limited (Subsidiary Company)
Bank AL Habib Limited (the Bank) was incorporated in Pakistan on 15 October 1991 as a public
limited company under the Companies Ordinance, 1984 having its registered office at 126-C, Old
Bahawalpur Road, Multan, with principal place of business being in Karachi. Its shares are listed
on all the Stock Exchanges in Pakistan. It is a scheduled bank principally engaged in the business
of commercial banking with a network of 316 branches (31 December 2012: 308), 88 sub-branches
(31 December 2012: 82) and 03 representative offices (31 December 2012 :02). The branch
network of the Bank includes a wholesale branch in the Kingdom of Bahrain (31 December 2012:
01), a branch in Karachi Export Processing Zone (31 December 2012 :01) and 15 Islamic Banking
branches (31 December 2012: 13).The Bank has invested in 66.67% shares of AL Habib Capital
Markets (Private) Limited. The principal objective of the company is to engage in the business of
equity, money market and foreign exchange, brokerage, equity research and corporate financial
advisory and consultancy services. AL Habib Capital Markets (Private) Limited (the Company)
was incorporated in Pakistan as a (Private) Limited Company on 23 August 2005 under the
Companies Ordinance, 1984 and started operations from 14 December 2005.
2. STATEMENT OF COMPLIANCE
2.1 These consolidated interim condensed financial statements of the Group have been prepared,
in accordance with the requirements of the International Accounting Standard 34 - 'Interim Financial
Reporting', provisions of the Companies Ordinance, 1984, Banking Companies Ordinance,1962
and directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the
State Bank of Pakistan (SBP). In case where requirements differ, the provisions of the Companies
Ordinance, 1984, the Banking Companies Ordinance, 1962 and the said directives have been
followed.
2.2 SBP vide BSD Circular No. 10, dated 26 August 2002 has deferred the applicability of International
Accounting Standard (IAS) 39, "Financial Instruments: Recognition and Measurement" and IAS
40, "Investment Property" for banking companies till further instructions. Further, according to the
notification of SECP dated 28 April 2008, IFRS - 7 "Financial Instruments: Disclosure" has not
been made applicable for banks. Accordingly, the requirements of these standards have not been
considered in the preparation of these financial statements. However, investments have been
classified, accounted for and valued in accordance with the requirement of various circulars issued
by SBP.
2.3 The disclosures made in these consolidated interim condensed financial statements have been
limited based on the format prescribed by SBP vide BSD Circular Letter No. 2, dated 12 May 2004
and IAS 34 "Interim Financial Reporting" and do not include all the information required in the
annual financial statements. Accordingly, these consolidated interim condensed financial statements
should be read in conjunction with the annual financial statements of the Group for the year ended
31 December 2012.
NOTES TO THE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS
(UN-AUDITED) FOR THE HALF YEAR ENDED 30 JUNE 2013
31
3. ACCOUNTING POLICIES
3.1 The accounting policies adopted in the preparation of these consolidated interim condensed
financial statements are consistent with those of the previous financial year except as follows:
New and amended standards
The Group has adopted the following revised standard, amendments and interpretation of IFRSs
which became effective on 01 January 2013 :
IAS 1 - Presentation of Financial Statements Presentation of items of other comprehensive
income (Amendment)
IAS 19 - Employee Benefits (Revised)
IFRIC 20 - Stripping Costs in the Production Phase of a Surface Mine
The adoption of the above revision and amendments of the standards did not have any effect on
the financial statements except for as described in note 3.1 below:
Further, certain new standards have been issued by IASB which are effective for accounting
periods beginning on or after 01 January 2013 but are yet to be notified by the Securities Exchange
Commission of Pakistan (SECP) for the purpose of applicability in Pakistan.
3.2 Change in accounting policy
During the period, the Group has adopted Revised IAS 19 - 'Employee Benefits'. As per revised
standard, actuarial gains and losses for defined benefit plans are recognised in other comprehensive
income when they occur. Amounts recorded in profit and loss are limited to current and past service
costs, gains or losses on settlements, and net interest income / (expense). All other changes in
the net defined benefit asset / (liability) are recognised in other comprehensive income with no
subsequent recycling to profit and loss.
The adoption of above revised standard has resulted in change in accounting policy of the Group
related to recognition of actuarial gains and losses to recognise actuarial gains and losses in total
in other comprehensive income in the period in which they occur. Previously, actuarial gains or
losses in excess of 10% of the actuarial liability or plan assets were recognised in profit and loss
account over the expected average working life of the employees. The impact of the said changes
on these consolidated interim condensed financial statements is as under:
Rupees in 000
Net decrease in unappropriated profit as at 1 January 2012 114,128
Net increase in profit for the period ended 30 June 2012 2,892
Net decrease in other comprehensive income for the period ended 30 June 2012 2,595
Net increase in defined benefit liability as at 31 December 2012 174,668
Net decrease in deferred tax liability as at 31 December 2012 61,134
3.3 The basis of consolidation of the financial statements of subsidiary is same as that applied in the
preparation of the consolidated financial statements of the Group for the year ended 31 December
2012.
32
30-June 2013 (Un-Audited) 31-December 2012 (Audited)
Note Held by Given as Total Held by Given as Total
Group Collateral Group Collateral
(Rupees in '000)
4. INVESTMENTS
Available for Sale Securities
Market Treasury Bills 121,473,825 46,219,500 167,693,325 114,006,833 50,291,508 164,298,341
Pakistan Investment Bonds 13,486,928 00 13,486,928 13,446,569 00 13,446,569
Foreign Currency Bonds 1,156,152 00 1,156,152 1,108,499 00 1,108,499
Sukuks 3,414,129 00 3,414,129 3,508,008 00 3,508,008
Ordinary shares of listed companies 1,280,959 00 1,280,959 276,576 00 276,576
Ordinary shares of unlisted companies 39,570 00 39,570 39,570 00 39,570
Listed term finance certificates 614,228 00 614,228 502,829 00 502,829
Unlisted term finance certificates 532,770 00 532,770 532,820 00 532,820
Open ended mutual funds 1,381,416 00 1,381,416 1,727,189 00 1,727,189
143,379,977 46,219,500 189,599,477 135,148,893 50,291,508 185,440,401
Held to Maturity Securities 4.1
Market Treasury Bills 59,107,435 00 59,107,435 48,660,340 00 48,660,340
Pakistan Investment Bonds 17,716,050 00 17,716,050 12,503,552 00 12,503,552
Sukuks 222,728 00 222,728 229,705 00 229,705
Listed term finance certificates 99,353 00 99,353 246,931 00 246,931
Unlisted term finance certificates 00 00 00 41,667 00 41,667
77,145,566 00 77,145,566 61,682,195 00 61,682,195
Associates
Habib Sugar Mills Limited 279,831 00 279,831 281,831 00 281,831
Habib Asset Management Limited 69,965 00 69,965 40,013 00 40,013
First Habib Income Fund 423,284 00 423,284 556,646 00 556,646
First Habib Stock Fund 66,740 00 66,740 56,665 00 56,665
First Habib Cash Fund 331,188 00 331,188 318,760 00 318,760
First Habib Islamic Balanced Fund 27,889 00 27,889 25,358 00 25,358
1,198,897 00 1,198,897 1,279,273 00 1,279,273
Investments at cost 221,724,440 46,219,500 267,943,940 198,110,361 50,291,508 248,401,869
Provision for diminution in
the value of investments (6,586) 00 (6,586) (6,586) 00 (6,586)
Investments (net of provisions) 221,717,854 46,219,500 267,937,354 198,103,775 50,291,508 248,395,283
Surplus on revaluation of
available for sale investments - net 1,800,654 64,981 1,865,635 1,437,899 90,322 1,528,221
Investments after revaluation of
available for sale investments 223,518,508 46,284,481 269,802,989 199,541,674 50,381,830 249,923,504
4.1 The aggregate market value of held to maturity securities as on 30 June 2013 amounts to Rs. 78,271 (31 December 2012: 62,824) million.
33
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in '000)
5. ADVANCES
Loans, cash credits, running finances, etc.
In Pakistan 129,098,054 130,494,857
Outside Pakistan 8,808,964 8,203,074
137,907,018 138,697,931
Net investment in finance lease / ijarah financing
In Pakistan 685,714 501,124
Outside Pakistan 00 00
685,714 501,124
Bills discounted and purchased
(excluding market treasury bills)
Payable in Pakistan 1,970,619 1,924,843
Payable outside Pakistan 16,105,531 12,329,922
18,076,150 14,254,765
Advances - gross 156,668,882 153,453,820
Provision against non-performing loans and advances
Specific provision 5.1 (3,316,847) (3,062,933)
General provision against consumer advances
(as per SBP regulations) 5.2 (34,631) (31,059)
General provision 5.3 (2,500,000) (2,500,000)
(5,851,478) (5,593,992)
Advances - net of provisions 150,817,404 147,859,828
5.1 Advances include Rs. 3,845.700 (31 December 2012: Rs. 3,705.730) million which have been placed under
non-performing status as detailed below:
34
30-June 2013 (Un-Audited)
Classified advances Provision req uired Provision held
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
(Rupees in '000)
Category of classification
Other assets
especially mentioned 12,885 00 12,885 476 00 476 476 00 476
Substandard 32,636 00 32,636 8,159 00 8,159 8,159 00 8,159
Doubtful 476,658 404,535 881,193 238,329 202,267 440,596 233,179 202,267 435,446
Loss 2,917,661 1,325 2,918,986 2,858,885 1,325 2,860,210 2,871,441 1,325 2,872,766
3,439,840 405,860 3,845,700 3,105,849 203,592 3,309,441 3,113,255 203,592 3,316,847
31-December 2012 (Audited)
Other assets
especially mentioned 00 00 00 00 00 00 00 00 00
Substandard 379,505 92,802 472,307 94,876 23,200 118,076 94,876 23,200 118,076
Doubtful 83,246 00 83,246 41,626 00 41,626 41,626 00 41,626
Loss 3,148,885 1,292 3,150,177 2,901,939 1,292 2,903,231 2,901,939 1,292 2,903,231
3,611,636 94,094 3,705,730 3,038,441 24,492 3,062,933 3,038,441 24,492 3,062,933
35
5.2 The Bank has made general provision for consumer portfolio as required by SBP's Prudential
Regulations amounting to Rs. 34.631 (31 December 2012: Rs. 31.059) million.
5.3 In line with its prudent policies, the Bank has also made general provision of Rs. 2,500 (31
December 2012: Rs. 2,500) million against its loans and advances portfolio. This general provision
is in addition to the requirements of the Prudential Regulations.
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
6. OPERATING FIXED ASSETS
6.1 Additions during the period - at cost:
Leasehold land 00 391
Buildings on leasehold land 65,319 136,972
Improvements to leasehold buildings 132,345 34,778
Furniture and fixtures 25,538 14,591
Electrical, office and computer equipments 207,790 173,268
Vehicles 144,677 79,984
Intangible assets 20,481 2,321
596,150 442,305
6.2 Deletions during the period - at cost:
Furniture and fixtures 4,750 1,262
Electrical, office and computer equipments 37,386 10,285
Vehicles 56,595 38,036
98,731 49,583
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
7. BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Export refinance scheme 13,888,554 14,138,447
Long term financing for export oriented projects 225,211 369,695
Long term financing for imported and locally
manufactured plant and machinery 2,699,878 3,015,612
Financing facility for storage of agricultural produce 152,028 47,703
16,965,671 17,571,457
Repurchase agreement borrowings 46,253,070 50,331,048
63,218,741 67,902,505
Unsecured
Borrowings from financial institutions 349,067 1,719,550
Overdrawn nostros 157,808 00
506,875 1,719,550
63,725,616 69,622,055
36
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in 000)
8. DEPOSITS AND OTHER ACCOUNTS
Customers
Fixed deposits 87,806,946 96,079,552
Savings deposits 118,271,554 105,561,063
Current accounts - Remunerative 35,540,051 29,061,770
Current accounts - Non-remunerative 115,402,005 104,284,355
357,020,556 334,986,740
Financial institutions
Remunerative deposits 7,234,308 4,949,208
Non-remunerative deposits 404,169 450,610
7,638,477 5,399,818
364,659,033 340,386,558
9. SURPLUS ON REVALUATION OF ASSETS
- NET OF TAX
Operating fixed assets 9.1 1,741,576 1,760,240
Available for sale investments 9.2 1,247,242 1,027,783
2,988,818 2,788,023
9.1 Operating fixed assets
Surplus on revaluation of land and buildings 2,347,595 2,376,309
Related deferred tax liability (606,019) (616,069)
1,741,576 1,760,240
9.2 Available for sale investments
Federal Government Securities 1,707,842 1,386,550
Fully paid-up ordinary shares 69,680 24,097
Term finance certificates, sukuks, bonds and others 12,596 14,895
Open ended mutual funds 85,280 116,635
1,875,398 1,542,177
Related deferred tax (628,156) (514,394)
1,247,242 1,027,783
10.4Other Contingencies
There is no significant change during the period in the other contingencies as disclosed
in the annual financial statements of the Group for the year ended 31 December 2012.
10. CONTINGENCIES AND COMMITMENTS
10.1Direct Credit Substitutes
Financial institutions 822,223 166,232
Others 109,625 348,728
931,848 514,960
10.2Transaction-related Contingent Liabilities
Government 11,294,982 9,446,751
Financial institutions 105,613 68,497
Others 6,477,888 6,279,180
17,878,483 15,794,428
10.3Trade-related Contingent Liabilities
Letters of credit 62,258,987 50,183,933
Acceptances 8,716,229 8,647,034
70,975,216 58,830,967
37
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
10.5 Commitments in respect of forward lending
Commitments to extend credit 651,179 472,257
10.6 Commitments in respect of forward exchange
contracts
Purchase 18,323,718 15,272,338
Sale 17,154,417 16,888,512
The maturities of above contracts are spread over a period upto one year.
10.7 Commitments for the acq uisition of operating
fixed assets 180,372 146,070
38
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Un-Audited)
(Rupees in 000)
11. MARK-UP / RETURN / INTEREST EARNED
On loans and advances to:
Customers 6,500,332 6,699,116 3,134,647 3,323,980
Financial institutions 108,761 84,078 86,627 58,725
6,609,093 6,783,194 3,221,274 3,382,705
On investments:
Available for sale securities 9,195,456 8,972,460 4,624,207 5,830,107
Held to maturity securities 3,342,122 4,994,027 1,650,783 1,032,477
12,537,578 13,966,487 6,274,990 6,862,584
On deposits with financial institutions 35,619 34,632 17,645 20,012
On securities purchased under
resale agreements 24,972 53,717 9,736 30,183
On call money lendings 1,000 700 398 313
19,208,262 20,838,730 9,524,043 10,295,797
Half year ended Quarter ended
30-June 30-June 30-June 30-June
2013 2012 2013 2012
(Un-Audited)
(Rupees in 000)
12. MARK-UP / RETURN / INTEREST EXPENSED
Deposits 8,983,152 9,941,236 4,510,132 5,060,217
Sub-ordinated loans 462,362 507,927 230,029 251,904
Repurchase agreement borrowings 1,879,368 1,749,129 879,991 669,503
Borrowings from SBP 716,777 735,637 354,131 355,339
Other borrowings 155,568 336,359 66,555 143,588
12,197,227 13,270,288 6,040,838 6,480,551
39
15. RELATED PARTY TRANSACTIONS
Related parties of the Group comprise associates (including entities having directors
in common with the Group), retirement benefit funds, major share holders, directors
and key management personnel and their close family members.
Transactions with related parties are carried out on an arm's length basis in terms of
the policy as approved by the Board of Directors. The transactions with employees of
the Group are carried out in accordance with the terms of their employment.
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
13. BASIC AND DILUTED EARNINGS PER SHARE
ATTRIBUTABLE TO EQUITY HOLDERS OF
THE HOLDING COMPANY
Restated
Profit after taxation - attributable to equity holders
of the Holding company 2,492,492 2,512,731
(Number)
Weighted average number of ordinary shares 1,010,386,742 1,010,386,742
(Rupees)
Restated
Basic and diluted earnings per share 2.47 2.49
Half year ended
30-June 30-June
2013 2012
(Un-Audited)
(Rupees in 000)
14. CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks 31,625,786 22,776,635
Balances with other banks 2,164,125 3,243,734
Overdrawn nostros (157,808) (709,890)
33,632,103 25,310,479
40
30-June 2013 (Un-Audited)
Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Deposits
At the beginning of the period 1,691,582 146,594 294,767 151,603 2,284,546
Placement during the period 39,466,725 455,548 655,881 1,073,202 41,651,356
Withdrawal during the period (39,409,137) (402,769) (592,019) (1,050,635) (41,454,560)
At the end of the period 1,749,170 199,373 358,629 174,170 2,481,342
Advances
At the beginning of the period 1,615,380 351 28,605 00 1,644,336
Given during the period 9,586,440 2,000 28,491 00 9,616,931
Repaid during the period (9,592,094) (2,255) (16,538) 00 (9,610,887)
At the end of the period 1,609,726 96 40,558 00 1,650,380
Investments
At the beginning of the period 1,279,273 00 00 00 1,279,273
Investment made during the period 26,250 00 00 00 26,250
Redeemed / adjusted during the period (106,626) 00 00 00 (106,626)
At the end of the period 1,198,897 00 00 00 1,198,897
Contingencies and commitments 430,105 00 00 00 430,105
Transactions for the period / year and balances outstanding as at the period / year end
with related parties are summarised below:
31-December 2012 (Audited)
Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Deposits
At the beginning of the year 1,438,356 86,815 275,992 118,882 1,920,045
Placement during the year 75,338,485 631,362 1,169,514 7,365,961 84,505,322
Withdrawal during the year (75,085,259) (571,583) (1,150,739) (7,333,240) (84,140,821)
At the end of the year 1,691,582 146,594 294,767 151,603 2,284,546
Advances
At the beginning of the year 1,404,261 426 30,252 00 1,434,939
Given during the year 16,218,504 2,976 41,608 00 16,263,088
Repaid during the year (16,007,385) (3,051) (43,255) 00 (16,053,691)
At the end of the year 1,615,380 351 28,605 00 1,644,336
Investments
At the beginning of the year 973,095 00 00 00 973,095
Investment made during the year 225,000 00 00 00 225,000
Redeemed / adjusted during the year 81,178 00 00 00 81,178
At the end of the year 1,279,273 00 00 00 1,279,273
Contingencies and commitments 532,693 00 00 00 532,693
41
Half year ended 30-June 2013 (Un-Audited)
Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Purchase of fixed assets 1,047 00 00 00 1,047
Sale of securities 00 00 00 00 00
Redemption of mutual funds units 158,659 00 00 00 158,659
Purchase of mutual fund units/securities 26,250 00 00 00 26,250
Mark-up earned 71,782 00 771 00 72,553
Mark-up expensed 34,257 4,242 9,852 9,038 57,389
Bank charges and commission 2,395 5 57 00 2,457
Gain on sale of securities 8,659 00 00 00 8,659
Salaries and allowances 00 00 94,458 00 94,458
Bonus 00 00 8,542 00 8,542
Contribution to defined
contribution plan 00 00 3,825 00 3,825
Contribution to defined
benefit plan 00 00 7,442 00 7,442
Staff provident fund 00 00 00 91,992 91,992
Staff gratuity fund 00 00 00 60,000 60,000
Directors' fee 00 1,250 00 00 1,250
Insurance claim received 5,500 00 00 00 5,500
Insurance premium paid 78,077 00 00 00 78,077
Dividend income 23,605 00 00 00 23,605
Brokerage and advisory income 769 00 00 00 769
Half year ended 30-June 2012 (Un-Audited)
Associates Non Key Retirement Total
Executive Management Benefit
Directors Personnel Funds
(Rupees in 000)
Purchase of fixed assets 838 00 00 00 838
Sale of securities 3,436 00 00 00 3,436
Redemption of mutual funds units 59 00 00 00 59
Purchase of mutual fund units/securities 200,000 00 00 00 200,000
Mark-up earned 77,794 2 929 00 78,725
Mark-up expensed 29,912 3,871 10,868 8,191 52,842
Bank charges and commission 2,346 4 52 00 2,402
Gain on sale of securities 13 00 00 00 13
Salaries and allowances 00 00 81,499 00 81,499
Bonus 00 00 7,924 00 7,924
Contribution to defined
contribution plan 00 00 3,559 00 3,559
Contribution to defined
benefit plan 00 00 5,791 00 5,791
Staff provident fund 00 00 00 78,229 78,229
Staff gratuity fund 00 00 00 55,551 55,551
Directors' fee 00 1,225 00 00 1,225
Insurance claim received 9,839 00 00 00 9,839
Insurance premium paid 129,553 00 00 00 129,553
Dividend income 65,261 00 00 00 65,261
Brokerage and advisory income 540 00 00 00 540
42
16. ISLAMIC BANKING BUSINESS
The Bank is operating 15 (31 December 2012: 13) Islamic Banking branches in Pakistan.
The statement of financial position of these branches as at 30 June 2013 is as follows:
30-June 31-December
2013 2012
Note (Un-Audited) (Audited)
(Rupees in 000)
ASSETS
Cash and balances with treasury banks 529,586 322,418
Balances with and due from financial institutions 3,963 2,786
Investments 1,531,691 1,573,586
Islamic financing and related assets 16.1 8,995,069 7,698,981
Operating fixed assets 49,167 41,123
Other assets 214,136 254,653
11,323,612 9,893,547
LIABILITIES
Bills payable 50,773 44,896
Due to financial institutions 1,162,666 1,081,647
Deposits and other accounts 6,904,228 6,824,034
Current accounts 1,547,764 1,469,285
Saving accounts 1,612,475 713,014
Term deposits 3,714,678 3,981,713
Others 9,267 58,863
Deposits from financial institutions-remunerative 19,553 600,625
Deposits from financial institutions-non-remunerative 491 534
Due to Head office 1,760,000 360,000
Other liabilities 308,097 315,081
(10,185,764 ) (8,625,658)
NET ASSETS 1,137,848 1,267,889
REPRESENTED BY:
Islamic banking fund 1,000,000 950,000
Unremitted profit 135,928 310,177
1,135,928 1,260,177
Surplus on revaluation of assets 1,920 7,712
1,137,848 1,267,889
43
30-June 31-December
2013 2012
(Un-Audited) (Audited)
(Rupees in 000)
16.1 Islamic financing and related assets
Murabaha 4,234,601 3,125,006
Ijarah 3,708 3,926
Net book value of assets / investments in ijarah
under IFAS 2 264,539 307,173
Diminishing musharika 2,832,843 2,851,554
Export refinance murabaha 229,166 81,600
Export refinance istisna 952,500 1,000,047
Istisna 262,050 44,644
Gross financing 8,779,407 7,413,950
Less: general provisioning against consumer financing (285) (231)
Net financing 8,779,122 7,413,719
Advance against murabaha 215,947 277,979
Advance against ijarah 00 7,283
Islamic financing and related assets - net off provision 8,995,069 7,698,981
16.1.1 Islamic financing and related assets
Financings / inventory / receivables 8,779,407 7,413,950
Advances 215,947 285,262
Less: general provisioning against consumer financing (285) (231)
8,995,069 7,698,981
17. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
The segment analysis with respect to business activity is as follows:
Half year ended 30-June 2013 (Un-Audited)
Retail Commercial Retail Inter Segment Total
Bank ing Bank ing Brok erage Elimination
(Rupees in 000)
Total income 9,982,420 19,411,186 41,594 (8,330,080) 21,105,120
Total expenses (8,759,162) (16,886,469) (27,702) 8,330,080 (17,343,253)
Net income 1,223,258 2,524,717 13,892 000 3,761,867
As of 30-June 2013 (Un-Audited)
Segment assets 337,799,136 458,041,602 481,821 (321,251,502) 475,071,057
Segment liabilities 336,662,825 435,560,539 325,558 (321,251,502) 451,297,420
Half year ended 30-June 2012 (Un-Audited)
Retail Commercial Retail Inter Segment Total
Banking Banking Brokerage Elimination
(Rupees in 000)
Restated
Total income 11,171,353 20,456,293 20,993 (9,313,878) 22,334,761
Total expenses (9,653,363) (17,503,214) (28,420) 9,313,878 (17,871,119)
Net income 1,517,990 2,953,079 (7,427) 000 4,463,642
As of 30-June 2012 (Un-Audited)
Segment assets 277,716,589 387,165,690 330,729 (267,949,982) 397,263,026
Segment liabilities 276,489,279 368,544,103 187,313 (267,949,982) 377,270,713
44
18. DATE OF AUTHORISATION
These consolidated interim condensed financial statements were authorised for issue
by the Board of Directors in their meeting held on 29 August 2013.
19. GENERAL
19.1 Figures have been rounded off to the nearest thousand rupees.
19.2 Figures of the profit and loss account for the quarters ended 30 June 2013 and 30
June 2012 have not been subjected to limited scope review by the auditors.
19.3 Corresponding figures have been re-arranged / re-classified wherever necessary, for
the purpose of comparison. There are no major reclassifications to report.
ABBAS D. HABIB
Chief Executive and
Managing Director
SYED MAZHAR ABBAS
Director
ANWAR HAJI KARIM
Director
ALI RAZA D. HABIB
Chairman