UBL Annual Report

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making us the most progressive bank
with a strong footprint of over 1300
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For you, UBL stays ahead

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We strongly believe that you are valuable

to us in shaping our illustrious past
and determining our glorious future.
UBL On every road to success,

we say you come first
Annual
Report
2013
Company Information
Contents
Board of Directors
01
Company Information
12
Directors Profile
16
Directors Report to the Members
23
Corporate Social Responsibility
24
President & CEO Review
29
Growth at a Glance
33
International Network
35
Shariah Advisors Report
37
Statement of Compliance with the Code of

Corporate Governance
38
Review Report to the Members on Statement of

Compliance with Best Practices of Code of
Corporate Governance
39
147
Auditors Report to the Members
148
Consolidated Statement of Financial Position
149
Consolidated Profit & Loss Account
150
Consolidated Statement of Comprehensive Income
151
Consolidated Cash Flow Statement
Mr. Zameer Mohammed Choudrey

Mr. Amin Uddin
Mr. Aqeel Ahmed Nasir
152
Consolidated Statement of Changes in Equity
Board Human Resource & Compensation Committee
153
Notes to and forming part of the Consolidated

Financial Statements
Mr. Seerat Asghar

Mr. Atif R. Bokhari
Mr. Jamal Nasir
237
Annexure A as referred to in note 9.8 of Groups

Consolidated Financial Statements
Board Risk Management Committee
249
Annexure C as referred to in note 11.7 of Groups

255

(in US Dollars)
Annual Statement of Internal Controls

42
Unconsolidated Statement of Financial Position
256
Consolidated Profit & Loss Account (in US Dollars)
43
Unconsolidated Profit & Loss Account
257
Category of Shareholders
44
Unconsolidated Statement of Comprehensive Income
258
Pattern of Shareholding
45
Unconsolidated Cash Flow Statement
261
46
Unconsolidated Statement of Changes in Equity
Shares Trading (Sale / Purchase) during

the Year 2013
47
Notes to and forming part of the Unconsolidated

Financial Statements
262
Notice of 55th Annual General Meeting
264
Statement of Material Facts
122
Annexure A as referred to in note 9.11 of Banks

Unconsolidated Financial Statements
Annexure B as referred to in note 10.6 of the Banks
Unconsolidated and Consolidated Financial Statements
Annual Report 2013
Chairman / Non Executive Director

Non Executive Director
Independent Director
Independent Director
GOP Nominee Director
President & CEO
Annexure C as referred to in note 11.7 of

41
114
Sir Mohammed Anwar Pervez, OBE, HPk

Mr. Amin Uddin
Mr. Arshad Ahmad Mir
Mr. Seerat Asghar
Mr. Atif R. Bokhari
141
Committees of the Board

Board Audit Committee
Chairman
Member
Secretary
Member
Member
Secretary

Mr. Atif R. Bokhari
Mr. Zulfiqar Alavi
Chairman
Member
Secretary
Chief Financial Officer
Mr. Rayomond Kotwal
Company Secretary & Chief Legal Counsel
Mr. Aqeel Ahmed Nasir
Registered Office:
13th Floor, UBL Building, Jinnah Avenue,

Blue Area, Islamabad, Pakistan.
Head Office:
State Life Building No. 1, I.I. Chundrigar Road,

Karachi - 74000, Pakistan.
UAN: 111-825-111
Contact Centre: 111-825-888
Website: www.ubldirect.com
Email: [email protected]
Share Registrar
M/s. THK Associates (Pvt.) Limited

2nd Floor, State Life Building No. 3,
Dr. Ziauddin Ahmed Road, Karachi, Pakistan.
UAN: 111-000-322
Auditors
M/s. KPMG Taseer Hadi & Co.,

Chartered Accountants
M/s. BDO Ebrahim & Co.,
Legal Advisors
M/s. Mahmood Abdul Ghani & Co.

Advocates
Form of Proxy
01
bank of
the year
2013
Sir Mohammed Anwar Pervez, OBE, HPk, Chairman of the Board of Directors,
UBL (2nd left) and Mr. Zameer Choudrey, Director UBL (3rd left) receiving
The Banker award for Bank of the Year 2013 - Pakistan
02
Annual Report 2013
03
vision
To be a world class bank dedicated to

excellence, and to surpass the highest
expectations of our customers and all
other stakeholders.
04
Annual Report 2013
05
mission
06
Annual Report 2013
Set the highest industry standard for quality, across all areas of operation, on a sustained basis
Optimize people, processes and technology to deliver the best possible financial
solutions to our customers
Become the most sought after investment, and
Be recognized as the employer of choice
07
values
and integrity
Honesty
and dedication
Commitment
and meritocracy
Fairness
and collaborative spirit
Teamwork
and mutual respect
Humility
Caring and socially responsible
08
Annual Report 2013
09
board of
directors
10
Annual Report 2013
11
Chairmans Profile
Sir Mohammed Anwar Pervez, OBE HPk,
became the Chairman of the Board of Directors
of United Bank Limited in December 2013; prior
to that he had been the Deputy Chairman since
October 2002. He is also the Chairman of
Bestway Group UK & its subsidiaries, which
include Batleys Limited and Bestway Cement
Limited. He is also Chairman of Bestway
Northern Limited in UK.
Sir Anwar began his career in food business in
1963, when he opened a convenience store in
London. He ventured into the wholesale
business in 1976 and has been responsible for
growing Bestway Group into the seventh largest
family business in the UK.
Today, Bestway group is the 2nd largest
wholesaler in the UK, the 2nd largest cement
producer in Pakistan and the 2nd largest private
bank in Pakistan. The Group provides
employment to over 25,700 globally.
Sir Anwar was awarded the Order of the British
Empire (OBE) in 1992 and was conferred the
title of Knights Bachelor in 1999 by Her
Majesty, the Queen, for his services to the food
industry and various charitable causes in the UK.
In 2000 he was awarded Hilal-e-Pakistan.
12
Annual Report 2013
In 2005, Sir Mohammad Anwar Pervez was

voted winner of the prestigious Grocer Cup for
Outstanding Business Achievement by the
Institute of Grocery Distribution, UK.
In 2006 he received Sitara-e-Essar by the
President of Pakistan. The same year he was
chosen as the Master Entrepreneur UK at the
Ernst & Young Entrepreneur of the Year 2006
Awards.
In 2011, Sir Anwar was awarded with an
honorary Doctor of Laws degree by FC College
Lahore.
In 2012, in recognition of his philanthropic
services to the community, the University of
Bradford conferred on Sir Anwar Pervez an
honorary Doctor of Laws degree.
He is the Chairman of Bestway Foundation, UK
and Patron-in-Chief of Bestway Foundation,
Pakistan and a charter member of the Duke of
Edinburgh Awards Scheme.
Sir Mohammed Anwar Pervez,

OBE, HPk
Chairman UBL
13
Directors Profile
Directors Profile
Zameer Mohammed Choudrey

Director UBL
Seerat Asghar
Director UBL
Mr. Zameer Mohammed Choudrey has been a Member of the

Board of Directors of United Bank Limited since October 2002.
He is also Chairman of the Board Audit Committee, as well as
Director of UBL Insurers Limited.
He is the Chief Executive of Bestway Group, which is the
seventh largest family business in UK with an annual turnover of
2.5 billion.
The Group today boasts a portfolio of 62 warehouses, covering
over 6 million square feet of selling space, offering a range of
over 25,000 products, serving over 125,000 independent
retailers and foodservice customers nationally and providing
employment to over 5,000 people in the UK.
Bestway Groups cement operations are the 2nd largest in
Pakistan. Bestway Cement Limited has four state-of-the-art
plants with a total capacity of 6 million tonnes per annum and
employs over 3,000 people.
Bestway Group as a Financial Controller in 1984. In 1990, he

was promoted as the Group Finance Director. In 1995, he was
given additional responsibilities of business diversification both
in the UK and Pakistan and was promoted as Chief Executive of
Bestway Cement Limited. He was appointed as the Group CEO
in 2004.
He is a fellow of the Institute of Chartered Accounts of England
& Wales and a member of the Institute of Directors. He is also
the Deputy Chairman of the Pakistan Britain Trade and
Investment Forum (PBTIF) and the Co-Chairman of the
Conservative Friends of Pakistan.
Zameer is a trustee of Bestway Foundation, UK and Chairman
of Bestway Foundation,
oundation, Pakistan. He is also a trustee of
Grocery Aid and
nd Crimestoppers. Zameer is a member of the
British Asian Trusts UK Advisory Council.
Mr. Seerat Asghar has been appointed as Director of United

Bank Limited by the Government of Pakistan with effect from
30th March, 2010. He is also a Member of the Board Human
Resource and Compensation Committee of the Bank.
Mr. Seerat Asghar has a vast experience, gathered over 32
years of service, in the Provincial as well as Federal Governments.
He brings with him a rich professional and academic
experience. He holds an LLB and a Masters degree in Political
Science from Punjab University, Lahore.
His last academic pursuit was at the prestigious Cornell
University USA, where he attended an Executive Development
Program in Food and Agriculture Business Management.
represented Pakistan in many international conferences across

the globe.
During the last 3 years, he has held important assignments as
special secretary and later on as principal secretary to the prime
minister. Currently, he holds the position of the Federal
Secretary of the Ministry of National Food Security and
Research.
With a strong base in Executive Leadership Development

from Harvard University, he has developed expertise in
Management and macro-economic planning. He has
Zameer is a Chartered Accountant by profession. He joined
Amin Uddin
Director UBL
Atif Riaz Bokhari

President & CEO UBL
Mr. Amin Uddin was appointed Member, Board of Directors of

United Bank Limited with effect from March 5, 2009. He is
member of Board Audit Committee of UBL and a member of
UBL Insurers Limited.
Currently President & CEO, United Bank Limited (UBL) is a

career banker with extensive experience in domestic and
international banking. He started his banking career in 1985
with Bank of America, where he handled diverse assignments
for over 15 years. Subsequent to leaving Bank of America in
July 2000, Mr. Bokhari joined Habib Bank Limited wherein he
was Head of Corporate and Investment Banking.
Amin studied at Government College, Lahore for his BA,

Economics, Degree. He attended Banking Management
Courses during 1986-87 at McGill University Montreal and other
professional courses at INSEAD University in France and
Nyenrode Business University in Holland. He is currently
enrolled as a mature student at GCU, Lahore, in his final
semester of Executive MBA program.
He has over 40 years of banking experience in Pakistan, Middle
East, Europe, Africa and Canada. He worked for Ecobank
Group, a leading Pan African Banking Institution, from January

1991 to July 2002. Prior to that, he worked for Bank of Credit
and Commerce from September 1977 to October 1990. He
began his career with Habib Bank Limited at Karachi, Pakistan.
ed Director from Pakistan Institute of Corporate
He is a certified
Governance, as per requirement of listing regulations.
Mr. Bokhari was appointed as President & CEO of UBL in May

2004 (18 months after privatization). Since then UBL has
ventured into new diversified business and revenue streams,
namely consumer financing, E-commerce, asset management
and general insurance.
in Karachi. Specifically he is a Director for the Karachi School

for Business & Leadership affiliated with the Judge Business
School, Cambridge, UK. He is also an independent Director of
Linde Pakistan Limited.
Mr. Bokhari holds the office of Chairman or Director in several

UBL Group companies. Mr. Bokhari is very actively involved
with a private sector program for the development of education
Arshad Ahmad Mir

Director UBL
Mr. Arshad Ahmad Mir was appointed as Member of Board
of Directors in October 2009. He has decades of extensive
corporate experience in financial services, oil industry,
management consultancy, manufacturing and wholesale
distribution businesses.
He has served with major corporate entities in areas of general
management, corporate planning, project management,
compliance and consultancy. Geographical coverage of his
corporate roles and responsibilities encompass Pakistan,
Middle East, Africa, UK and Europe.
Arshad Mir is a member of Institute of Chartered Accountants of
14
Annual Report 2013
England & Wales and Institute of Bankers, UK. He has

attended various management courses and conferences
including Advanced Management Programme of London
Business School.
He is the Chairman of the Board Risk Management Committee
of UBL.
15
On behalf of the Board of Directors, I am pleased to present to you

the 55th Annual Report of United Bank Limited for the year ended
December 31, 2013.
Financial Highlights
UBL achieved a profit after tax of Rs.18.6 billion which is 4% higher
than last year and translates into earnings per share of Rs.15.21
(2012: Rs.14.61). On a consolidated basis, UBL achieved a profit
after tax of Rs.19.7 billion, an increase of 3% over 2012.
Rs. in Billion
18.6
17.9
Non-Interest Income
Non-interest income continued to grow steadily and increased by
Rs.1 billion over 2012 levels to reach Rs.18.1 billion, maintaining its
share as a core component of the Banks revenues.
Fees and commissions posted strong growth of 23% over 2012 to
cross the Rs.10 billion mark this year. Higher transaction volumes
led the increase in general banking fees across the retail business
segment along with growth in earnings from corporate customers.
UBL Omni continued to make a major contribution, more than doubling
fee income, along with significant growth in home remittances and
cross sell activity including sale of Bancassurance.
27.8
26.9
The impact on earnings from tightening was offset by a growth of

over 13.4% in average assets, mainly funded through the acquisition
of core deposits. This enabled the Bank to contain the decline in net
interest income to 1.6% from Rs. 38.6 billion in 2012 to Rs. 37.9
billion in 2013.
Rs. in Billion
PBT
PAT
2012
2013
The Board of Directors is pleased to recommend a final cash dividend

of Rs. 4 per share i.e. 40% and a bonus share issue of nil for the year
ended December 31, 2013, bringing the total cash dividend for the
yearRs.
2013
to 100%.
%
in Billion
1.2% of
UBL5.5has achieved a pre-tax profit of Rs. 27.8 billion, a growth
4% over last year, despite a challenging year for the banking 1.0%
sector
4.2
where severe spread
compression has impacted core revenues. This
1.0%
has 2.9
been mitigated by a consistent build up in the balance 0.8%
sheet
overRs.
the
year, improved performance by International branches,
0.6%
in Billion
4.5
1.6
enhancement
in non-mark up based income and significant reduction
0.4%
0.3%
in provisions against non-performing loans.
828
0.3
698
Net-1.0
Interest Income
48
2012
1.4
56
2013
27.8
26.9
Timely leveraging
of opportunities
in line with improved stock market
performance resulted in a significant increase in capital gains to
Rs. 2.8 billion. Foreign exchange income increased 18.6
by 16% to reach
17.9
Rs. 2.2 billion as a result of active trading and effective position
management.
Provisions and loan losses

Total provisions declined significantly with a provision charge of
PAT
Rs.1.4 billion, aPBT
reduction of 68% over the previous
year. Active
2012
2013
recovery efforts against non-performing loans and diligent portfolio
management resulted in an 8% reduction in the level of NPLs this
year. The Bank stands well reserved with a coverage ratio of 87%.
Rs. in Billion
0.2%
5.5
1.2%
0.0%
4.2
In 2013 asset yields Total

and Provisions
earnings remainedNCL
impacted
by declining
Ratio
772
650have reduced by 500 bps over the last 2 years.
interest rates which
Regulatory changes increasing the minimum rate payable on savings
accounts have further compressed already declining margins which
Dec'12
reduced by around
100 bps to 5.4% in 2013.Dec'13
While rates have begun
Deposits
Core Deposits
to shift upwards in theNon
lastCore
quarter,
the linking
of the minimum savings
rate to the repo rate will keep margins restricted.
1.0%
1.0%
0.3%
0.3
-1.0
1.4
2012
7.0%
6.5%
39
6.4%
6.0%
35
38.6
5.4%
37.9
28
5.5%
5.0%
4.5%
2012
Net Interest Income
16
2013
0.4%
0.2%
0.0%
NCL Ratio
Rs. in Billion
42
25
0.6%
4.5
1.6
Total Provisions
32
0.8%
2.9
Annual Report 2013
2013
Net Interest Margin
4.0%
Cost management
In comparison to 2012, administrative expenses were 9.7% higher
in 2013. The increase is mainly on account of variable costs which
move in line with related transaction revenues. The current year also
includes the full cost of the previous years branch expansion while
spiraling utilities costs and the steep rupee devaluation impacting the
costs of overseas operations have also contributed to the increase.
On a comparable basis, increase in administrative expenses was
contained to below inflation levels as a result of continued cost
consciousness.
Growth in the Balance Sheet

UBLs balance sheet has crossed a landmark of Rs.1 trillion, growing
by 13% over December 2012. This was primarily funded by strong
growth in deposits which increased by 19% to Rs. 828 billion. The
distribution network continues to focus on a steady increase in stable
core deposits. Average core deposits increased by 17% over 2012.
Furthermore, targeted mobilization of low cost deposits has resulted
in the overall cost of deposits reducing by 47 bps, despite the multiple
regulatory increases in the savings rate. The profitable portfolio mix
was maintained in 2013 with 70% of total domestic deposits in the
low cost tier, driven by a strong CASA ratio which was maintained
at 83%.
by the newly elected government has supported the industrial sector

during the new fiscal year, as evidenced by a 5.2% growth in Large
Scale Manufacturing during Jul-Nov 2013.
The trade deficit for H1FY14 narrowed by 8.7% as compared to the
same period last year, as exports increased by 5.1% while imports
declined slightly by 1.1%. Workers remittances remain a critical
source in managing a fragile balance of payments position and
exhibited a strong growth of 9.5% over H1FY13. During H1FY14,
the current account deficit stood at USD 1.6 billion, significantly
higher than the USD 83 million during the same period last year,
mainly due to lower Coalition Support Fund proceeds this year.
Despite a relatively better financial account performance during
H1FY14, sizeable debt repayments continued to keep the external
account position under pressure.
Rs. in Billion
698
48
828
56
772
650
Dec'12
Non Core Deposits
Dec'13
Core Deposits
Advances increased by 7% to Rs. 391 billion as at December 2013,

mainly in the International business, which grew by 15%, reflecting
%
theRs.
improved
in Billion macroeconomic conditions in the GCC. Domestically,
the
fresh
42 Bank retains its conservative lending stance, with 7.0%
disbursements targeted at quality assets across all segments. The
6.5%
39
balance
sheet remains highly liquid and well positioned to capitalize
6.4%
6.0%
on lending opportunities
as they arise.
35
Strong
Capital Ratios
38.6
32
5.4%
37.9
5.5%
5.0%
The
28 Tier 1 Capital Adequacy Ratio (CAR) of the Bank was 10.0% as
4.5%
at December 2013, calculated under the Basel III framework, lower
4.0% as
25 as at December 2012 under the Basel II framework, primarily
than
2012
2013
a result of new capital rules on mutual fund investments. The bank
Net Interest Income
Interest Margin
exercised the call option
available on TFC Net
IV which
now stands fully
repaid. During the year, the bank paid interim dividends totaling Rs
6 per share in addition to the Rs 3.5 per share final dividend for the
previous year. Consequently, the total CAR stood at 13.3% as at
December 2013. The Bank has carried out an assessment of its
future capital requirements in accordance with Basel III regulations
which are being phased in over subsequent periods, and the existing
capital structure comfortably supports future growth.
Economy Review
Pakistan achieved a landmark during 2013 with the first ever
transition from one democratically elected government to another.
The election of the pro-business PML-N has brought with it a renewed
confidence from both domestic and foreign investors, although the
economic landscape remains challenging. The energy supply deficit
was aggravated further with the persistent shortage of natural gas,
resulting in idle capacity across various industries and a low real
GDP growth of 3.6% for FY13. The partial resolution of circular debt
Given a relatively weaker balance of payment position along with

repayments to the IMF, foreign exchange reserves have declined to
USD 8.3 billion by December 2013, with SBPs reserves touching a
decade low level of around USD 2.9 billion before marginally improving
to over USD 3.0 billion. This has created significant pressure on the
Rupee which depreciated by 8.4% during 2013, with a sharp slide
during the third quarter. Given the pressure on the external front and
the foreign exchange reserves position, the government has entered
into an Extended Fund Facility (EFF) agreement of US$ 6.6 billion
with the IMF. Despite receiving the first two EFF tranches, foreign
exchange reserves continued to remain under stress as these inflows
were offset by IMF repayments due under the previous Standby
Arrangement. Subsequent disbursements under the EFF are also
subject to meeting tough quarterly performance targets, which
includes net retirement of Government borrowing from the SBP,
significant increase in Net International Reserves (NIR), ceiling on
Net Domestic Assets and a curtailed budget deficit through widening
the tax net. A key IMF requirement is the privatization of around 30
entities, to generate foreign flows as well as curtail losses in public
sector enterprises. These include listed and profitable entities, where
initial or secondary public offerings should generate flows in the short
term, as well as large public sector entities which will need to be
restructured prior to a potential strategic sale. Given the difficulty in
securing significant foreign flows in the short term, the IMF has also
recently revised quarterly NIR targets, but still requires these to occur
before the end of the fiscal year.
The fiscal position remains concerning, as revenue generation
remains challenging whilst expenditures continue to escalate.
Pakistans budget deficit remained high at 8.0% of GDP in FY13
primarily due to lower tax collection (9.6% of GDP) and higher
expenditures mainly on account of energy subsidies. The government
has set an ambitious target of reducing the deficit to 5.8% of GDP for
FY14 as committed to the IMF, which envisages significantly higher
tax collection and contained expenditures. Provisional tax collection
estimates for 1HFY14 indicate 16% growth in collections over the
comparable period last year, while non-tax revenue has increased
substantially. This improvement, along with lower PSDP spending,
has resulted in an improved budget deficit at 2.2% of GDP for
1H FY14.
The stock market continued its uptrend during 2013 with the KSE-100
index setting new records and appreciating by 49% during the year,
outperforming regional peers. Within a low interest rate environment
and contained inflation for most part of the year, equity prices
17
responded favorably. Gains were also driven by rising corporate

profitability in key sectors. Daily volumes increased significantly as
the re-entry of foreign investors led to a net inflow of US$ 398 million
in FPI during 2013, a three year high.
With inflation trending down during the last couple of fiscal years,
the State Bank has lowered its policy discount rate by 500 bps
with the expectation that it would spur much needed private sector
growth. However, with inflation showing an uptick in 2HCY13 and
a deteriorating balance of payments position, the SBP has shown
a tighter monetary stance by increasing the discount rate by
50 bps each in September 2013 and November 2013 to reach 10.0%.
Moreover, the SBP has also increased the floor rate on PLS accounts
from the earlier fixed level of 6.0%, setting it 50 bps lower than the
repo rate. Hence, any upside from the increase in discount rate
will now directly result in increased cost of deposits, restricting net
margins and adding further pressure to banking sector spreads which
have now reached to their lowest level since 2004.
Deposits for the banking sector grew by 12.7% during the year while
advances grew by 5.6%. Despite the overall reduction in the discount
rate, demand for private sector credit has remained largely subdued
for most of the year, although the growth in the last quarter has
been encouraging, resulting in a growth of 5.7% during 2013. Nonperforming loans for the industry remained relatively stable, reducing
marginally by 1.1% during the nine months ended September 2013.
However, the absolute NPL stock for the sector remains high at
Rs. 604 billion.
International
The International Business has delivered a strong performance on
account of further improvement in the GCC economies, largely aided
by firm oil prices. In particular UAE, the largest constituent in the
International network, benefited from a perceptible improvement
in sentiment. This was evident in diverse sectors of the economy
like trade, tourism, hospitality, and a revitalised real estate sector.
Further the Government helped reinvigorate the economy through
infrastructure projects which will receive further impetus with the
award of Expo 2020 to Dubai.
Based on the positive environment, Corporate Bank expanded its
asset base by 19% through acquisition of quality new assets which
were funded by stable deposits at adequate spreads. On the liability
side, the International business continued with the strategy of building
its sustainable core deposit base and maintaining strong liquidity
across all markets. With single-minded emphasis on recoveries and
risk management, the business has achieved significant recoveries
and managed to reduce its level of non-performing loans this year.
Increased cross-selling and leveraging synergies within the group, in
particular with the Banks subsidiaries remains a key strategy.
UBL UAE became the first geography in the Franchise, and one of
only 3 Banks in the UAE to be awarded the prestigious ISO 9001:2008
Quality Management System certification for all areas of its business.
The Banks branches in the GCC were among a very select group of
banks to offer every evening, all week banking, opening 7 days a
week with extended evening hours, thereby strengthening presence
in the respective geographies.
18
Annual Report 2013
In 2013 the Bank made its first foray into the African Continent with
the commencement of the operations of its subsidiary UBL Bank
(Tanzania) Limited in Dar es Salaam, formally inaugurated by the
Vice President of Tanzania in September 2013. UBLs entry in Africa
is expected to offer tangible opportunities to the Bank in the East
African markets, and build on the Banks strengths in trade finance
and its linkages in the GCC.
Core banking system implementation
During the year, the remaining conventional branches and all
Islamic Banking branches were converted to the new Core Banking
System (CBS). However, the asset operations of the Islamic Banking
branches will continue to run on the existing Imal system till an
Islamic Banking module is available in CBS.
The implementation of CBS for the UAE branches is targeted to
be completed by the second quarter of 2014 with the successful
completion of Factory Acceptance Testing. Implementation of CBS
for other international branches is also planned and will commence
after CBS has been implemented in the UAE.
In order to streamline the loan booking process across all products,
the existing Loan Origination System (LOS) has been upgraded
to improve and simplify the user experience. This has now been
launched countrywide for all consumer products. Upgradation and
development of the Corporate LOS is under progress with roll out
planned in 2014. A Fraud Risk Management system is also planned
for development in 2014.
Key developments during 2013
Home Remittances
UBL continues to maintain its position as the market leader in
the home remittances business with a share of 23%, facilitating
much needed foreign exchange reserves for the country. UBL has
managed to increase its remittance flows by 12% this year, ahead of
the market growth of 4.4%. The performance was driven by greater
focus on target markets that originate higher remittance volumes,
through increased overseas sales representation. Brand building
and joint marketing initiatives with overseas partners have extended
the Banks outreach and further strengthened partner relationships.
Joint marketing activities were also conducted in co-ordination with
potential partners in new corridors.
Signature Priority Banking
UBLs flagship channel continues to excel at providing value added
services to High Net Worth customers through the exclusive UBL
Signature Priority brand. With 14 dedicated lounges operating across
the country, Priority Bankings prime focus in 2013 was on improved
service delivery, enhancement of the product suite and talent
cultivation. Signature introduced two new investment products, UBL
Gold Fund - Pakistans first open end gold mutual fund managed by
UBL Fund Managers, and UBL Better Life Signature Plan, a unit
linked life insurance plan offered through Jubilee Life Insurance. A
comprehensive training program was undertaken to develop UBL
Signature talent. The program encompassed product knowledge,
selling skills and client handling techniques tailored to the high net
worth segment. Client acquisition continued to gain momentum, with

a doubling of the customer base over the previous year.
Alternate Delivery Channels (ADC)
In April 2013, UBL became the only Bank in the market to launch
an internet acquiring platform, offering a state of the art payment
gateway with 3D security. In a short period of time, integration and
service activation of 30 leading merchants has been completed.
UBLs environmentally friendly Go-Green initiative has proved highly
popular with customers as during the year, over 140,000 customers
enrolled for Go-Green SMS Alerts, while 74,000 customers subscribed
to Go-Green e-Statements. The success behind this enrollment drive
is attributable to the cross-selling initiative undertaken through the
Banks Contact Center.
UBL pursued an aggressive expansion plan for its ATM network,
where a total of 141 new ATMs were deployed in 2013, taking the
total to over 700. During the year, over 69,000 prepaid debit cards
were issued targeting the needs of a variety of customers. For
customer convenience, IP phone booths have also been placed at
ATM locations in 438 branches.
UBLs Contact Center is one of the largest banking call centers
in Pakistan, comprising 350+ seats which help channelize traffic
through different ADCs. Customer issues were efficiently handled
resulting in a 30% reduction in the number of complaints. Through
active monitoring and escalations for timely resolution, the Contact
Center helped in increasing ATM uptime to 93% in 2013. During the
current year a Contact Center was established in UAE by replicating
the main centres technology and expertise.
Social Media
UBL endeavors to lead the market in technology innovation. The
Bank has successfully exploited the digital space, tapping into its
unlimited possibilities. UBL has leveraged its Social Media presence
since 2012 to increase interaction with customers, particularly for
speedy complaint resolution. Initiatives taken to promote UBLs online
presence have resulted in increased web traffic and digital market
penetration. With over 25,000 active fans on UBLs official Facebook
page, this platform has been effectively used to supplement various
marketing campaigns and generate viable leads during the year.
Credit Ratings
The credit rating company JCR-VIS re-affirmed the Banks longterm entity rating at AA+ and the ratings of its subordinated loan
instrument at AA. The short term ratings remain at A-1+ which is the
highest rating denoting the greatest certainty of timely payments by a
financial institution. All ratings for UBL have been assigned a Stable
outlook.
Capital Intelligence (CI), an international credit rating agency, has
re-affirmed UBLs long-term and short-term Foreign Currency ratings
at B- and B respectively in line with CIs sovereign ratings. In addition,
the Banks Financial Strength rating has been re-affirmed at BB+,
with the Outlook re-affirmed at Stable based on the Banks strong
performance.
Future Outlook
Achieving macroeconomic stability remains a key challenge for the
country. The government is already confronted with serious economic
and law & order issues which need to be addressed on a priority basis.
The government has shown its commitment to undertake structural
reforms and has begun rationalizing power and gas tariffs. However,
the circular debt has started rising and a permanent resolution to this
issue is required. Real GDP growth is expected to be suppressed,
with IMF projections at 2.8% for FY14. Achieving fiscal stability and
the targeted budget deficit of 5.8% is a key demand of the IMF, which
will require difficult decisions on broadening of the tax net and better
tax administration.
The external account will remain the most critical issue in 2014
given the pressure on foreign exchange reserves. EFF flows in
2014 are expected to only offset repayments under the earlier
Standby Arrangement. Additional foreign flows are immediately
needed to support the balance of payments position and keep the
Rupee stable. Inflation for 2HCY13 increased to 8.9% compared to
6.5% during 1HCY13, although it has reduced somewhat recently.
Inflation is expected to remain elevated going forward especially in
the backdrop of higher taxes, removal of energy subsidies, currency
depreciation and the low base effect of the previous fiscal year. While
this may result in further gradual monetary tightening, linking of the
minimum savings rate to the repo rate will continue to keep banking
spreads under pressure.
For UBL, asset quality will remain a focus area while revitalizing
its lending within the corporate and commercial segments. The
considerable progress in the reduction of NPLs during 2013 is
expected to be maintained, and settlements will be aggressively
pursued. Optimizing the expanded network to accelerate low cost
deposit growth remains a priority, as the distribution strategy is to
deepen relationships in conjunction with maintaining front end
momentum in new customer acquisition. The Bank is increasing
its emphasis on service delivery through staff training and driving
improvements that enhance the customer experience. While cost
consciousness will always remain in focus, the Bank will continue its
innovation leadership in the market, with investment and research &
development on technology driven products, channels and services.
Awards and Recognitions
During the year UBL received the following awards, which reflect
its strong performance, the strength of the franchise and the Banks
leadership in innovation:
Bank of the Year 2013 Pakistan Award, awarded by the The

Banker, a prestigious publication owned by The Financial Times
Ltd.
Asiamoney Best Domestic Bank in Pakistan Award 2012.
Top 25 Companies award by the Karachi Stock Exchange.
Award at World Marketing Summit 2013 for contribution towards

achievement of any one of the 8 Millennium Development Goals
(MDGs).
Best Investor Relations Award 2012, awarded by the CFA

Society, Pakistan.
19
Statement under Clause XVI of the Code of Corporate

Governance
The Board of Directors is committed to ensuring that the requirements
of corporate governance set by the Securities and Exchange
Commission of Pakistan are fully met. The Bank has adopted good
corporate governance practices and the Directors are pleased to
report that:
The financial statements present fairly the state of affairs of the

Bank, the results of its operations, cash flows and changes in
equity.
Proper books of account of the Bank have been maintained.
Appropriate accounting policies have been consistently applied

in the preparation of the financial statements, except for the
change in accounting policy as described in note 5.1. Accounting
estimates are based on reasonable and prudent judgment.
International Financial Reporting Standards, as applicable to

Banks in Pakistan, have been followed in the preparation of the
financial statements without any departure therefrom.
The system of internal control in the Bank is sound in design, and

is effectively implemented and monitored.
There are no significant doubts regarding the Banks ability to

continue as a going concern.
There has been no material departure from the best practices of

corporate governance.
Performance highlights for the last six years are attached to

these unconsolidated financial statements.
The Board has appointed the following three Committees with
defined terms of reference
Board Risk Management Committee (BRMC)
Board Human Resources & Compensation Committee
(HRCC)
Board Audit Committee (BAC)
The number of Board Committee meetings attended during the
year by each Director is shown below:
Name of Director
Mr. Omar Z. Al Askari *
Mr. Amin Uddin
Mr. Seerat Asghar
Mr. Rana Assad Amin **
Mr. Atif R. Bokhari
Designation & Name of Committee

Director / Chairman HRCC / Member BRMC
Director / Chairman BAC
Director / Member BAC
Director / Chairman BRMC
Director / Member HRCC
Director / Member BAC
President & CEO / Member HRCC & BRMC
BRMC HRCC BAC

3
4
4
4
4
4
2
4
4
-
* Mr. Omar Z. Al Askari has resigned on December 19, 2013 from all positions.
**Mr. Rana Assad Amin has resigned on September 9, 2013 from all positions.
The Bank operates five funded retirement Schemes which are the
20
Annual Report 2013
Provident Fund, Gratuity Fund, Pension Fund, Benevolent Fund and

General Provident Fund. The values of the investments of these funds
based on their latest audited financial statements as at December 31,
2013 are as follows:
Employees Provident Fund
Employees Gratuity Fund
Staff Pension Fund
Staff General Provident Fund
Officers / Non-Officers Benevolent Fund
Amounts in 000
3,250,788
446,775
3,271,828
1,274,569
855,050
The Bank also operates two unfunded benefit schemes for Post
Retirement Medical Benefits and Compensated Absences.
Meetings of the Board
During the year under review, the Board of Directors met six times.
The number of meetings attended by each Director during the year
is shown below:
Name of the Director
His Highness Sheikh Nahayan Mabarak Al Nahayan*
Mr. Omar Z. Al Askari*
Mr. Rana Assad Amin**
Mr. Amin Uddin
Mr. Seerat Asghar
Mr. Atif R. Bokhari
Designation
Meetings
attended
Chairman
Chairman
Director
Director
Director
Director
Director
Director
President &
CEO
03
05
04
06
03
06
06
05
06
His Highness Sheikh Nahayan Mabarak Al Nahayan and Mr. Omar Z. Al Askari have
resigned from the Board on December 19, 2013.
**
Mr. Rana Assad Amin has resigned from the Board on September 9, 2013.
Change in Directors
The Board of Directors would like to place on record its sincere
appreciation to the outgoing Chairman, His Highness Sheikh
Nahayan Mabarak Al Nahayan who tendered his resignation as
Chairman / Director on 19th December 2013. The Board unanimously
appointed Sir Mohammed Anwar Pervez, OBE, HPk, as Chairman
with immediate effect. The Board acknowledges the astute
leadership of His Highness, who was appointed as Chairman on 19th
October 2002 and has held this position since the privatization of the
Bank. His era as Chairman has seen unparalleled growth in terms
of profitability, team building and enhancement in the value of the
franchise, both in Pakistan and in other jurisdictions. His invaluable
advice has always been considered by the Board and management
as a guiding principle for achieving the organizations long term goals
and has resulted in the Bank attaining a strong market position today.
Mr. Omar Z. Al Askari, Director has also tendered his resignation on
December 19, 2013. The Board wishes to place on record its sincere
appreciation for the valuable guidance and services rendered by
Mr. Al Askari who has been a Director for over 11 years since the
privatization of the Bank.
Furthermore, Mr. Rana Assad Amin, Director, resigned on

September 9, 2013. The Board records its appreciation for his valuable
contribution and services.
Shareholders holding 5% or more voting rights
No. of shares
Bestway (Holdings) Limited
467,611,120
38.20
State Bank of Pakistan
238,567,381
19.49
Bestway Cement Limited
93,649,744
7.65
62,433,163
5.10
To fill the casual vacancies arising from the resignations of His

Highness Sheikh Nahayan Mabarak Al Nahayan and Mr. Omar
Z. Al Askari, the Board has approved the appointment of Mr. Zaheer
Sajjad and Mr. Haider Z. Choudrey as Directors with effect from
February 10, 2014, subject to the receipt of the FPT clearance from
the State Bank of Pakistan.
Trades in the shares of UBL carried out by Executives as defined

in Clause xvi (l) of the Code of Corporate Governance are annexed
along with the Pattern of Shareholding.
Risk Management Framework
The pattern of shareholding as required u/s 236 of the Companies

Ordinance, 1984 and Clause (xvi) of the Code of Corporate
Governance is given below:
Risk management structure of the bank entails a consolidated and

holistic approach. Risk management process of the Bank is overseen
by the Board Risk Management Committee (BRMC). Risk & Credit
Policy Group has following divisions, headed by senior executives,
reporting to the Group Head Risk and Credit Policy:
Shareholders
No. of Shares
Bestway Group (BG)

Government of Pakistan
Privatization Commission of Pakistan
General Public & Others
NIT
Banks, DFIs & NBFIs
Insurance Companies
Modarabas & Mutual Funds
Securities & Exchange Commission of Pakistan
* International GDRs (non-voting shares)
TOTAL OUTSTANDING SHARES
625,191,261
238,567,381
3,354,550
1,714
185,414,138
492,199
14,880,552
8,789,389
19,247,108
1
128,241,394
1,224,179,687
% of Ordinary
Shares
51.07
19.49
0.27
0.00
15.14
0.04
1.22
0.72
1.57
0.00
10.48
100.00
* This includes 10.3% shares in the form of GDRs held by Bestway Group.
The aggregate shares / GDRs held by the following are:

No. of
shares/GDRs
a)
Associated Companies, undertakings & related parties

- Bestway (Holdings) Limited
- Bestway Cement Limited
- Bestway Group holding in the form of GDRs*
b) NIT
-National Bank of Pakistan Trustee Department NI(U)T Fund
c) Modarabas & Mutual Funds**
d) Public sector companies and corporations
e) Banks, DFIs, NBFIs, Insurance Companies
f) Directors & CEO ***
-Sir Mohammed Anwar Pervez, OBE, HPk
-Zameer Mohammed Choudrey
-Amin Uddin
-Arshad Ahmad Mir
-Atif R. Bokhari, President & CEO
g) Executives
*
**
***
467,611,120
93,649,744
31,540,573
492,199
19,247,108
93,997,760
23,669,941
62,433,163
1,497,234
2,750
2,500
1,778,640
2,523,490
Number of GDRs (one GDR represents four ordinary shares).

Name wise detail of Modarabas & Mutual Funds is annexed with Categories of
Shareholders.
There were no shares held by the spouses or minor children of the Directors and CEO
of the Bank.
Credit Policy & Research

Credit Risk Management
Market and FI Risk Management
Operational Risk & Basel II
International Risk
Despite lower interest rates in 2013, the economic environment

remained challenging for private sector credit growth amid energy
shortages, governance and law & order issues. Considering the
overall macroeconomic imbalances, the bank focused on containment
of risk in its asset portfolio, with continued emphasis on proactive
remedial management. Continuous effort for the updation of Risk
Acceptance Criteria to lend to low-risk customers has served as a
key support tool in the credit disbursement process. In order to keep
key business groups aware of market and industry developments,
the Credit Policy & Research Division provided regular updates on
major macroeconomic issues and specific industry developments.
The Credit Policy and Credit Manuals for the bank were updated and
modified based on the changing risk and regulatory environment and
implemented during the year. Credit Policy redesigned the Obligor
Risk Rating model to reflect more objective ratings, with separate
models for Corporate, Commercial, SME and Individuals. A Facility
Risk Rating model was also developed and introduced. Domestic
and International industry concentration limits were reviewed and
amended where necessary to direct business units towards a
planned acquisition of assets.
Risks in the Consumer loan portfolio were managed by enhancing
process controls, changing policy parameters to target better quality
segments and improving product design. The continued usage of
existing customer scoring models and strengthening documentation
has improved the overall consumer risk management process.
During the year Basel III regulations were introduced for Capital
Adequacy Ratio (CAR) calculations. The regulations come into
effect from December 2013, with a phased-in approach, with full
implementation by December 2019. The Bank has maintained its
CAR well above prescribed regulatory thresholds throughout the year
based on applicable Basel II and Basel III requirements. During the
year the Internal Capital Adequacy Assessment Process framework
has been revised in light of the new guidelines issued by SBP to
make the process more robust and effective. The Bank continued
21
its efforts to enhance the scope of its Operational Risk Management

Framework in order to better understand the operational risk profile
and improve the overall control environment. Business Continuity
Planning and outsourcing policies are also in place to appropriately
address the relevant risks. The Bank continued to test the impact of
stringent and varied stress scenarios on its earnings, liquidity and
capital adequacy. The results of the stress testing were presented to
senior management committees and the BRMC.
Auditors
The Market & Treasury Risk function continues to monitor market risk
on both on and off Balance Sheet exposures. Sensitivity and scenario
analyses are used to assess the potential risk of proposed as well as
existing investments. Building on the initiatives taken during the last
few years, greater reliance is placed on quantitative methods and
the mechanism for limit setting and review of exposures has been
strengthened. Steps are also being taken to establish a mechanism
for liquidity risk monitoring in line with guidelines provided by the SBP
under the Basel III regime.
The Board of Directors, on the recommendation of the Board Audit

Committee, recommends M/S. KPMG Taseer Hadi & Co., Chartered
Accountants for re-appointment and M/S. A. F. Ferguson & Co.,
Chartered Accountants, as auditors of the Bank in place of M/S. BDO
Ebrahim & Co., Chartered Accountants.
Growth in the Financial Institutions (FI) portfolio is being handled

effectively to avoid risk concentration through established limits by
product, transaction type and geography. The FI Credit Application
package has also been upgraded in order to enhance risk coverage.
The bank aims at business growth across international markets using
its relationship with other globally active Financial Institutions by
assuming direct exposures or through risk participation. The market
risk function proactively manages these exposures and provides
monthly updates to senior management about aggregate exposures
by country. The unit also conducts semiannual reviews of assigned
country risk limits and takes appropriate measures to realign them
with business strategies and the Banks risk appetite.
The present auditors M/S. KPMG Taseer Hadi Khalid & Co.,
Chartered Accountants, retire and, being eligible, offer themselves
for re-appointment in the forthcoming Annual General Meeting.
M/S. BDO Ebrahim & Co., Chartered Accountants, retire and in
pursuance of the Code of Corporate Governance become ineligible
for re-appointment having completed a term of five years.
Conclusion
In conclusion, I extend my thanks and appreciation to UBL
shareholders and customers as well as to my fellow members of the
Board of Directors for their trust and support. We would specifically
like to acknowledge the contribution made by the Abu Dhabi Group
to UBL over the last many years particularly the patronage of our
outgoing Chairman, His Highness Nahayan Mabarak Al Nahayan.
We value the efforts and dedication demonstrated by our staff
and would also like to express our earnest appreciation to the
Government, the State Bank of Pakistan, the Securities & Exchange
Commission and other regulatory bodies for their continued support.
For and on behalf of the Board,

Chairman
Karachi
February 19, 2014
22
Annual Report 2013
Corporate Social Responsibility (CSR)
UBL considers it a responsibility to make a

meaningful contribution to the welfare of society and
strives to support deserving causes, particularly in
education, health care and community welfare and
development. Projects supported by the Bank are
those which benefit the society at large and also
where instant relief efforts are necessary. The Bank
ensures that it gives back to the society it operates
in and does so in the most transparent manner. In
2013, UBL more than doubled its CSR contribution to
Rs. 77 million and remains committed to its role as
an active and responsible Corporate Citizen.
As always UBLs commitment to the education sector
remains strong. The Bank believes that affordable
quality education should be available to all segments
of the society, and in support of this conviction,
made aggregate contributions and commitments
of over Rs. 50 million towards this sector in 2013.
Contributions this year included support to The
Citizen Foundations school adoption program
where the Bank adopted a school in the rural area of
Gharo in Sindh. UBL has provided initial funds to lay
the foundation of the school and begin construction.
Once complete, this school will provide free primary
and secondary school education to the children of
the village.
of Burns Center, Al-Mehrab Tibbi Imdaad and to

specialized health providers such as The Kidney
Center, and the Shaukat Khanum Memorial Trust.
UBL also reached out to the remote area of Bagh
Bani Passari in Azad Kashmir, where the Bank
donated to the Marie Adelaide Leprosy Center for
their Triple Merger Center, which will render health
related services to nearly 500,000 people.
UBL donated to several causes for community
welfare and development, including providing food
sustainability solutions via kitchen gardening through
the Hisaar Foundation, lighting a village through
solar power in Sahiwal in partnership with the Buksh
Foundation and helping Bazm-e-Kiran in their work
on rehabilitation of juvenile offenders.
UBLs CSR agenda is driven by its vision of a
developed and thriving Pakistan. The Bank feels
strongly that all segments of society should have
equal opportunities to receive the best education,
nutrition and healthcare, while being part of a
progressive and benevolent community. UBL will
continue to work towards making this goal a reality
in the coming years.
UBL also contributed to the Lahore University of

Management Sciences as support for its National
Outreach Program that provides scholarships to
deserving underprivileged students. As part of a
continuing arrangement, the Bank continues to
support the Institute of Business Administration
in Karachi for development of its infrastructure.
Support was also given to Forman Christian College
in Lahore for its scholarship program and to the Sir
Syed Memorial Society for initial ground-work for the
construction of the Sir Syed University in Islamabad.
The provision of quality health care for the
underprivileged is an area where the Bank has
continued to devote attention. In the current year,
over Rs. 21 million was disbursed to various
deserving hospitals and NGOs, such as the Gulab
Devi Chest Hospital, Shalamar Hospital, Friends
23
President & CEO Review 2013
Introduction
UBL has achieved a consolidated profit after tax of Rs. 19.7 billion
in 2013, with a 22% Return on Equity, a strong and consistent
performance from 2012. Margins have been impacted in the last
two years by the consistent reduction in the level of interest rates,
coupled with the increase in the minimum rate payable on savings
accounts, as a result of which banking sector spreads are currently at
their lowest level since 2004. Despite monetary easing, growth within
the private sector has remained subdued. UBLs diversified non-fund
income streams and overseas operations have helped to maintain
the earnings profile.
Reduction in the level of NPLs and recoveries against loan losses

remained a focus area for the Corporate and Special Asset
Management units.The sustained recovery efforts against nonperforming loans have resulted in an 8% reduction of Rs. 4.7 billion
in the level of NPLs in the last one year, as provisions reduced for
a fourth consecutive year and were 68% lower than in 2012. The
asset quality ratio as at December 2013 stood at 12.1%, a significant
improvement from the 14.0% level in December 2012.
The International business has delivered a strong growth across

most markets. In addition, the Banks subsidiaries in Switzerland
and the UK both had record years. Our investment in microfinance
through Khushhali Bank has seen a multifold improvement in its
profitability and business volumes. The Banks new subsidiary in
Tanzania commenced its commercial operations during the year and
is expected to offer significant opportunities in East African markets.
UBLs capital ratios remained strong as the unconsolidated

Tier-1 CAR was 10.0% in December 2013 with the overall capital
adequacy at 13.3%. The comfortable capital position enabled the
Bank to exercise the call option on its subordinated debt, resulting
in a decrease in Tier-2 capital. However this, along with changes in
capital rules applicable on investments in mutual funds resulted in
the CAR reducing from 14.8% in December 2012. Return on assets
decreased marginally from 2.1% in 2012 to 2.0% in 2013 as a result
of tightened interest margins. The advances to deposit ratio (ADR)
reduced from 56% in December 2012 to 51% in December 2013,
reflecting the improved liquidity position of the Bank. The strong
capital and liquidity position of the Bank resulted in re-affirmation
of our excellent credit ratings from local and international rating
agencies.
Key financials
Retail Bank
UBL has achieved an unconsolidated profit before tax of Rs. 27.8 billion,
which is 4% higher than last year.
Retail Banking remains our cornerstone and continues to grow and

deepen a loyal and well diversified deposit base offering customized
solutions both for business and individual banking customers. We
have segmented our client base to focus on a core deposits portfolio
which fits our long term relationship based model. The Retail
business continued to focus on maximizing value throughout the
expanded branch network. The expansions undertaken in 2011 and
2012 have now begun to deliver strong results with a near doubling
of current and core deposits within the new branches. Consequently,
average core deposits grew by 17% over 2012, while the overall cost
of deposits reduced by 47 bps despite the impact of the regulatory
increase in the minimum rates payable on savings accounts.
The expansion in both the conventional and Islamic branch network

in the last 3 years continues to pay off and has been part of a strategy
to build on our strong nationwide distribution. At the same time, UBL
continued its market leadership in the branchless banking space as
our Omni network grew to over 13,000 Dukaans, expanding the
geographical footprint to more than 700 cities and towns.
UBLs Balance Sheet has now crossed the Rs. 1 trillion mark, driven
by a 19% growth in deposits. In 2013, we have grown our profitable
funding profile while maintaining overall market share. Deposit
mobilization across the domestic branch network is focused on
acquiring core deposit accounts that are stable and long term. The
Domestic deposit base grew by 15% to reach Rs. 619 billion, while
average Core deposits grew by 17%. Gross advances increased from
Rs. 409 billion in December 2012 to reach Rs. 437 billion, largely due
to growth in the International loan book.
Net Interest income declined only marginally, as spread compression
was mitigated through active balance sheet management and deposit
growth. Non fund income reached Rs. 18.1 billion during 2013 as fees
and commissions increased by 23% and treasury and capital markets
activities delivered another strong performance with substantial
capital gains. The improvement in fees was mainly from Omni, with
a doubling of earnings as its product suite, transactions flows, and
agent network continue to set new highs. Home remittances flows
have outperformed market growth in terms of volume, with a sizable
increase in earnings. Higher transaction volumes resulting from
growth in customer activation and flows through Alternate Distribution
Channels continue to maximize the benefits of a large network. Cash
management income has increased substantially with enhancement
in volumes and further mandates acquired during the current year.
Administrative expenses grew to Rs. 26 billion in 2013 mostly driven
from the Banks investment in Omni branchless banking, the full
impact of the branch expansion in 2012, and the impact of Rupee
devaluation on international expenses. On a comparable basis,
24
expense growth was curtailed to 4.8%, as UBL remains committed

to managing its costs prudently along with achieving operational
efficiency.
Annual Report 2013
In order to improve the ambience of our banking environment, 164

branches were renovated to UBL standards to provide a consistent
look and feel in branches across Pakistan. In 2013, the Bank
embarked on a renewed service quality initiative headed by a senior
resource as it strongly feels that this remains a key differentiator for
customers. This is expected to accelerate momentum and deliver
visible change in 2014 with plans for countrywide training and
championing by senior management.
UBLs Signature Priority Banking initiative, its flagship channel with
14 lounges in 10 cities continued to show excellent results with a
doubling of the customer base. During the year, the Bank opened
one new Signature lounge in Sukkur which provides an unrivalled
customer experience to its high net worth clients in the area. The
business also introduced two new investment products for its priority
customers, in partnership with UBL Fund Managers and Jubilee
Life Insurance. Talent development was emphasized to ensure that
relationship managers have sufficient product and service knowledge
to satisfy the unique needs of this demanding segment.
UBLs presence in countries with significant overseas Pakistanis

creates a captive channel for home remittances. In 2013, UBL
maintained its market leadership within the domestic home
remittances business with a 23% market share driven by its superior
TezRaftar service and the distribution of Pardes cards, a unique
product allowing remittances to flow directly to beneficiaries through
their debit cards. UBL is now auto-processing its home remittance
transactions on a 24x7 basis and the UBL Online Remittance Portal
makes it convenient for remitting partners to execute and monitor
their transactions.
UBL provides multiple channels for customers to access banking
services to suit their needs and convenience. Our 370 seat Contact
Centre is one of the largest banking call centers in Pakistan and serves
as the most direct contact point for customer queries and complaints.
Efficient resolution of customer issues resulted in a 30% decline
in the number of complaints this year. A Contact Center was also
established in UAE. The ATM network was significantly expanded to
718 ATMs in branch and non-branch locations to provide customers
convenient 24x7 access to cash. Proactive monitoring succeeded in
improving ATM uptime to over 90% and IP phones providing hotline
access to the Contact Center were installed at 438 branches for
speedy resolution of issues.
UBL also enhanced its digital presence with the launch of Pakistans
first internet acquiring platform with 3D security, enabling customers
to conduct transactions at their convenience. The Banks environment
friendly Go-Green initiative has proved popular as over 74,000
customers subscribed to paperless e-statements. Usage of our
best-in-class NetBanking platform has grown by 40% with new bill
payment and vendor alliances for online payments. UBL retains the
distinction of being the first and only bank to offer electronic IPO
subscriptions. Our Facebook page has attracted over 25,000 fans
and is an excellent interaction mechanism for fulfilling individual
customer needs.
The Consumer Assets business continued to focus on quality
acquisitions under the Relationship Model. Our unique Silah Mila
campaign, which rewards customers with good credit history,
remained the primary source of card customer acquisition, while
spend and reward campaigns were launched for customer retention.
Alliances were also formed with car manufacturers, dealers and
insurance companies to provide quality leads for car financing. The
Collections and Recovery function was restructured to proactively
monitor early warning signals and reduce delinquencies, achieve
efficiencies in auctions and focus on enforcement of collateral.
Islamic Banking
UBL Ameen in 2013 grew its branch network to 22 branches, while
the deposits portfolio on average grew by 24%. Islamic Banking
deposits were migrated from Unibank to Symbols this year,
enhancing operational synergies within the Bank. The business
model aims at evolving customized Shariah compliant products to
suit the requirements of mid-tier clients within different industries.
Corporate Banking
The Corporate Banking Group (CBG) is a long term business partner
for large corporates within Pakistan. The full product and service
offering suited to the specific requirements of clients within varied
industries is supported by a very experienced team of relationship
managers. The business model of CBG is to synergize the expertise
within all the wholesale banking units in UBL in order to structure

solutions tailored to meet the trade, working capital and long term
financing requirements of customers, through a one-window operation
offering ease and reliability.
In 2013, despite intense competition and declining margins, CBG
grew its loan book by serving top tier clients and entering into
structured trade financing transactions. Given the economic climate,
the focus remained on maintaining the risk profile of the portfolio
and proactively managing stressed credits through recoveries and
restructuring. The renewed focus on trade volumes, supported
by superior relationships and client servicing capabilities helped
enhance non funded income streams. The mid-tier customer segment
is serviced through commercial centers targeting wider outreach. The
objective is to provide clients with specific business solutions and
easy access through a team of fully dedicated relationship managers
localized to adapt to the needs of smaller businesses.
In the current year the Cash Management business has evolved into
a complete Transaction Banking model, aimed at serving the end to
end financial needs of targeted clientele. This has created synergies
with customers who seek a comprehensive financial architecture
including procurement of inventory, managing work in progress
and handling finished goods and receivables. The supply chain and
distribution network of customers offers further opportunities for
business generation. Transaction Banking now encompasses cash
management for Corporate and Commercial Assets, Structured
Trade, Liquidity Management and Custodial Services. This business
realignment has already starting delivering incremental throughput
and profitability.
In the product development area, UBL continues to stay ahead of the
market with the launch of Smart Pay, a mobile-based application to
facilitate collections, utility bills payments, funds transfer and other
payments. Similarly, UBL has become the first bank to offer Cash
over The Counter Facility for corporate clientele needing cash based
disbursement solutions. To capture payment and disbursement
business from corporate and institutional clients, specific products
like the Corporate Bankers Cheque and Corporate Customers
Cheque were rolled out, augmenting business revenues and market
share. Product development towards more innovative payment
mechanisms is in progress where the Bank aims to revolutionize the
payments process through technology solutions.
Investment Banking
The Investment Banking Group remained a prominent player in
the domestic investment banking space and continued to build its
Middle East business. The Group was recognized by the industry and
received the CFA Award for Best Corporate Finance House of the
Year 2012-Runnerup.
Debt Capital Markets & Syndications closed sixteen transactions to
further consolidate its leadership position in the domestic market.
Internationally, the business closed eight deals during the year and
made greater inroads by tapping the increasing opportunities on offer
in regional markets. The most notable transaction was a USD 100
million syndicated term finance facility extended to the Government
of Pakistan with UBL as the Agent Bank.
The Project & Structured Finance business concluded the first ever
transaction for a road project under the recently unveiled provincial
Public Private Partnership framework with similar smaller ticket
25
transactions expected during 2014. Origination efforts initiated in

2013 are expected to lead to some major transactions in renewable
energy.
The Equity & Advisory segment advised the Bank for the acquisition
of a 7.2% stake in Kot Addu Power Company Limited, a deal size
of Rs. 2.9 billion. This business also successfully closed the Tender
Offer for IGI Insurances strategic acquisition of American Life
Insurance Company Limited (Pakistan).
International
The overall economic sentiment in the GCC markets continued
to improve, driven by firm oil prices and increase in infrastructure
projects, mainly in UAE & Qatar. The awarding of Expo 2020 to Dubai
is a reflection of the country as a safe and stable destination for
business. The market sentiment in Bahrain saw some improvement
over the year, largely driven by resumption of oil production disrupted
in 2012.
Capitalizing on these positive developments and in line with our
growth strategy, International continued to register sustained growth
in all lines of business. Corporate Banking delivered a strong
performance by penetrating defined target markets and writing quality
assets. The Financial Institutions Group had another successful
year, diversifying its exposure in geographies and products. The
Special Assets Unit registered an excellent performance through
well-coordinated recovery efforts. Treasury was able to capitalize on
market opportunities through timely realization of capital gains and
deployment of available liquidity.
The Investment Banking business was revitalized and concluded
some major deals including being awarded a joint mandate as Lead
Arranger for a syndicated transaction for a Nigerian Bank, a private
sector syndication out of UAE, a syndicated transaction for a National
Airline and book runner for a sovereign syndicated financing facility.
International deposits closed at record levels, while maintaining the
desired mix and cost. International branches in the GCC are now
open 7 days a week with extended banking hours in the evening to
provide customers with convenience and value added and innovative
services.
International operations, particularly the United Arab Emirates, were
positively rated by regulators, reflecting the results of efforts made in
the areas of risk management, compliance and operations. The UAE
business was also awarded the ISO 9001:2008 Quality Management
System Certification in all spheres of its activities. UBL UAE is in the
select category of only a few banks in the region to have obtained
this certification.
In 2013, the Bank enhanced its footprint after 40 years, when it made
its first foray into the African continent, with the commencement of
operations of its subsidiary, UBL Bank (Tanzania) Limited. There has
also been a renewed focus on leveraging UBLs subsidiaries and
the International business successfully created synergies within the
network, as a result of which, the subsidiaries in Switzerland and the
United Kingdom both delivered a record performance.
Branchless Banking
In continuation of last years success, UBL Omni branchless
26
Annual Report 2013
banking continued to deliver improved bottom line profitability.

During the year, UBL Omni increased its Dukaan network to over
13,000, expanding this geographical footprint to more than 700 cities
and towns. The number of transactions has increased by over 30%,
while volumes have increased by 50% over the previous year. The
Agent Network distribution model was also diversified with the first
Super Agency distribution partner adding 160 outlets across 80 cities.
UBL Omni continues to maintain its market dominance in the
Government-to-Person (G2P) payments arena by working closely
with the Government of Pakistan and multilateral agencies for
countrywide cash transfer initiatives that support low income
individuals, disaster affected families, and other global social
initiatives such as polio eradication. In 2013, UBL Omni was
recognized internationally as one of 14 Sprinters by the GSMAs
Mobile Money for the Unbanked (MMU) program and also nominated
for the GSMA 2013 award for Best use of mobile for Women. UBL
Omni was the only bank recognized out of 150 worldwide mobile
and branchless implementations surveyed. More recently, a GSMA
benchmarking survey of MMU programs has ranked UBL Omni at or
near the top of most success indicators and well above global and
regional averages.
On the Retail front, tremendous growth was witnessed in the Personto-Person (P2P) domestic remittance business with a three-fold
increase in the number of transactions and a five-fold growth in overall
volumes compared to 2012. The number of Branchless banking
accounts grew by 85% with 35% of new customers opting for ATM
debit cards that are instantly issued at the time of account opening. An
additional mobile application designed for Android smart phones has
also been made available for UBL Omni customers and agents. UBL
Omni has continued to grow its cash management business, providing
customized solutions to microfinance institutions, FMCGs, online
businesses and schools by leveraging its network and proprietary
technology. Transactions and volumes for the cash management
business have more than doubled as compared to 2012.
The Omni proprietary technology platform successfully achieved
the internationally recognized PA-DSS Payment Application Data
Security Standards certification after having undergone a rigorous
validation of security safeguards and controls against global security
standards created by the Payment Card Industry Security Standards
Council (PCI SSC). The certification exercise was conducted with
support from the Bill & Melinda Gates Foundation.
Treasury and Capital Markets
Treasury & Capital Markets has demonstrated excellent performance
in a volatile macroeconomic environment. The fixed income portfolio
has provided the base for improved accrual income with maturity
and interest rate profiles designed to give stability to UBLs balance
sheet. An in-depth understanding of market dynamics has enabled
the business to identify and capitalize on market opportunities in
a timely manner and contributed to significant growth in non fund
income from equities, foreign exchange and fixed income.
Human Resources (HR)
As a long-term strategy at UBL, a performance based culture is given
top priority and inculcated across all front end and support functions.
Manpower planning includes specific emphasis on the development,
motivation and retention of key personnel who are viewed as
integral to leading performance and growth for the Bank. The

Talent Management process includes a specific program designed
to develop high potential employees, Management Trainees and
Retail Banking Officers. This provides tailored developmental and
career advancement opportunities in order to guide and maximize
the potential of high performers through fast tracking and counseling.
UBL believes that succession planning is critical for seamless
continuity across functions. In addition to induction through external
sourcing where required, the Bank promotes a culture where
employees are encouraged to avail internal growth opportunities.
The Performance Management Process is now fully embedded and
while best performers were rewarded, efforts were also made on a
regular basis for managing performance which does not meet our
high standards.
Emphasis remained on developing a robust talent pipeline comprising
experienced professionals as well as fresh hires, especially to cater to
the significantly expanded branch network and the Omni branchless
banking business. As part of a structured annual program, over
200 Retail Bank Officers were inducted across Pakistan. A similar
number of cash officers were inducted into the permanent cadre after
undergoing a rigorous selection and training process consisting of
a mix of classroom and on-the-job training designed to fully equip
them to excel in their respective roles. As part of cost management
initiatives this year, various functions were restructured in order to
create synergies and to identify opportunities for centralization and
redeployment of existing headcount.
As part of the Banks policy of investing in its human capital and
providing continuous professional development for its employees,
the Learning & Development team conducted the first two of the
three Retail Bank Certification Programs which were developed in
collaboration with the Institute of Bankers, Pakistan. These programs
are aimed at increasing the effectiveness of Branch Managers and
Customer Service Operation Managers. A tailored 4 day training was
also arranged for senior executives in collaboration with the Pakistan
Institute of Corporate Governance for their Bank Governance
Program.
UBL encourages and initiates continuous training for staff engaged
in the credit approval process through the in-house Credit Skills
Development Program, including the internationally recognized
Omega Certification. Apart from the regular and on-going e-learning
programs, an AML / CFT module was developed and released
successfully through the Learning Management System. This training
was made mandatory for all staff to enhance compliance knowledge
across the Bank.
A cordial relationship was maintained with the two Collective
Bargaining Agents in 2013 and Labor Agreements were signed with
both.
Risk and Credit Policy
2013 was a difficult year for Pakistans economy with sluggish
real GDP growth and below potential private sector performance.
However, the manufacturing sector performance improved during
the latter half of the year as a result of the partial resolution of circular
debt by the newly elected government. The balance of payments
remained a source of concern primarily due to debt repayments
to the IMF. With the challenges around the economic environment
the Banks risk management framework was strengthened to better
protect asset quality. The focus remained on close monitoring and a
proactive approach to ensure containment of risk and improvement in

asset quality, while also selectively growing the loan book in targeted
sectors. In the international business, the economic sentiment in
most of UBLs markets remained positive. This was aided by firm oil
prices and an increase in infrastructure investments. In particular,
in the Banks largest market of UAE, growth was evident in diverse
sectors of the economy which led to increased demand for wholesale
banking credit.
Mitigation of risk underpinned the Banks lending process and stricter
measures were adopted in vulnerable areas. Risk Acceptance Criteria
were updated and continuous efforts were made to enhance industry
coverage. Revised Credit Policy and Credit Manuals for the Bank
were implemented in 2013 and the FI Credit Application package
was upgraded to effectively handle the fast growing FI portfolio. The
existing Obligor Risk Rating Model has been made more quantitative
and a Facility Risk Rating Model has been introduced. Industry
concentration limits have been reviewed and amended based on the
Banks appetite and industry dynamics. For its consumer business,
UBL uses behavioral and application scoring techniques to contain
risk within the portfolio by utilizing the models for front end decision
making and curtailing delinquencies. The Banks various groups
and businesses were kept informed of economic and industrial
developments by the Credit Policy & Research Division, which puts
out regular updates on relevant developments.
Credit risk management continued to focus on containing impairment
in the asset portfolio through assisting the business in restructuring
and rescheduling of problem credits. Greater emphasis on recoveries
from the non-performing portfolio resulted in non-performing loans
reducing both in the Domestic and International businesses. The
Consumer collections & recovery team has demonstrated excellent
performance and is working with the business to maintain the overall
health of the portfolio.
Market Risk management remains a dedicated function within the
risk framework, with a well established process for exposure reviews,
approval and monitoring. Market Risk tools in use include sensitivity /
scenario analyses of portfolio positions in order to assess potential risks
resulting from shifts in interest rates under the overall guidance of the
Market Risk Committee. Monitoring of market risk exposures within
the International business is performed by a dedicated team that also
plays a key role in liquidity management across different countries.
During the year, monitoring and supervision of market risk exposures,
especially interest rate risk, for both the trading and banking books, was
strengthened further.
The Bank also continued its efforts towards fully implementing the
Operational Risk Management Framework across the organization.
The Operational Risk Monitor is currently in use in various key
departments. Loss data is captured and monitored against key
performance indicators.
UBL has maintained its Capital Adequacy Ratio well above the
prescribed regulatory thresholds throughout the year including under
the Basel III requirements which became effective from December
2013. The Bank also performed an impact analysis based on the
Basel III guidelines and UBL comfortably meets the prescribed
current and future capital requirements. During the year the Internal
Capital Adequacy Assessment Process framework has been revised
in light of the new guidelines issued by SBP to make the process
more robust and effective.
27
Peak Exposure Limits are reviewed bi-annually, to safeguard the

Banks cross-border exposures. Country risk reviews are carried
out on a semi-annual basis and a framework for reporting aggregate
cross border exposures to senior management and the Board Risk
Management Committee is in place. To estimate the earnings
sensitivity, capital adequacy and liquidity under stressed conditions,
UBL conducts comprehensive stress testing on a quarterly basis, and
the results are presented to senior management and the BRMC.
As UBL grows its loan portfolio, maintaining asset quality remains a
key objective along with a stringent focus on collateral enforcement.
Concentration risk is also being monitored closely in order to take
appropriate action where necessary.
landscape. This is a reflection of the strength of our diversified

business model, driven by technological innovation and unique
customer-centric product development. The investments made in
network expansion, branchless banking and technology are now
beginning to produce the intended synergies and performance.
Looking ahead, in 2014 the Bank will strive to enhance market
positioning, driven by low cost deposit acquisition, improving asset
quality and a relentless focus on recoveries. While cost efficiencies
remain a priority, we will continue to invest, as always, in people
and technology. UBL remains well placed for growth as the core
markets where we have invested expand and open up with further
improvement in the economic climate.
Core Banking System (CBS) implementation

During the year, the remaining conventional and all Islamic branches
were converted to CBS. Asset operations of the Islamic branches will
continue to run on the existing Imal system till an Islamic Banking
module is available in CBS. The UAE branches are expected to be
migrated to CBS in 2014. Factory Acceptance Testing has been
completed and customization is in progress. Implementation of CBS
for other countries will commence once the UAE business has gone
live.
In order to streamline the loan booking process across all products,
the existing Loan Origination System (LOS) has been upgraded to
improve and simplify the user experience. This has been launched
countrywide for all consumer products and upgradation and
development for a Corporate LOS is under progress with roll out
planned in 2014. A Fraud Risk Management system is also planned
to be developed in 2014.
Corporate Social Responsibility (CSR)
UBL strives to provide for deserving causes across the country,
contributing funds to education, health care and community welfare
and development in the most transparent manner. In 2013, UBL
as a responsible Corporate Citizen donated around Rs 77 million
to various institutions. The largest component of this contribution
was towards the promotion and support of education in Pakistan,
followed by substantial assistance to organizations providing health
care for the disadvantaged. In the community welfare area, UBLs
most significant initiative was relief to the earthquake devastated
district of Awaran in Balochistan. UBL undertook efforts to set up
a UBL Village in the affected area to provide much needed relief
and shelter to the displaced. The Bank also dedicated its own staff
to ensure that all essential assistance was provided to the affectees
on a timely basis.
UBLs CSR initiatives are driven by its vision of a developed and
thriving Pakistan. The Bank feels strongly that all segments of society
should have equal opportunities to receive the best education,
nutrition and healthcare, while being part of a progressive and
benevolent community. UBL will continue to work towards making
this goal a reality in the coming years.
Conclusion
UBL has delivered a record performance despite a domestic
environment that remained challenging with the transition to a new
government and continued structural problems in the macroeconomic
28
Annual Report 2013
Atif R. Bokhari
President & CEO
Karachi
February 19, 2014
Growth at a Glance
Six Years Financial Summary
December 31
Standalone
2013
2012
2011
2010
2009
PKR million
2008
BALANCE SHEET
Assets
Cash and balances with treasury and other banks
Lending to financial institutions
Investments - gross
Advances - gross
Operating fixed assets
Other assets
Total assets - gross
Provisions against non-performing advances
Provisions against diminution in value of investment
Total assets - net of provision
114,388
28,835
425,253
436,749
24,608
27,317
1,057,150
(45,936)
(1,476)
1,009,739
109,396
21,953
351,002
409,090
24,431
26,800
942,673
(44,727)
(1,412)
896,535
100,602
11,890
297,137
366,307
22,982
23,976
822,893
(40,959)
(2,726)
779,207
86,104
11,935
227,237
368,692
22,424
21,044
737,436
(34,960)
(2,658)
699,818
66,878
23,162
138,398
382,478
21,926
17,851
650,693
(28,387)
(2,253)
620,053
57,567
22,805
118,865
390,903
18,021
19,677
627,839
(19,763)
(2,537)
605,539
Liabilities & Equity

Deposits & other Accounts
Borrowing from financial institutions
Sub-ordinated loans
Bills payable
Other liabilities
Total Liabilities
Net Assets / Liabilities
Share capital
Reserves
Unappropriated profit
Equity - Tier 1
Surplus on revaluation of assets
Equity
Total liabilities & equity
827,848
40,574
665
16,591
23,147
908,825
100,914
12,242
33,681
42,635
88,558
12,356
100,914
1,009,739
698,430
68,720
9,319
7,601
20,226
804,296
92,238
12,242
29,044
37,416
78,702
13,537
92,238
896,535
612,980
49,953
11,317
5,879
18,650
698,779
80,428
12,242
24,847
34,809
71,898
8,530
80,428
779,207
550,646
45,105
11,986
5,046
18,621
631,403
68,415
12,242
21,689
26,250
60,181
8,234
68,415
699,818
492,036
35,145
11,990
5,147
14,799
559,117
60,937
11,129
18,960
22,188
52,276
8,660
60,937
620,053
483,560
44,196
11,994
5,194
16,732
561,677
43,863
10,117
15,502
16,604
42,223
1,640
43,863
605,539
72,846
(34,910)
37,936
12,205
4,845
1,064
18,114
56,050
(26,718)
29,332
(77)
(1,448)
27,807
(9,193)
18,614
73,507
(34,948)
38,560
10,025
3,131
3,975
17,131
55,691
(24,306)
31,385
(35)
(4,499)
26,851
(8,960)
17,891
70,451
(31,026)
39,425
9,027
1,261
2,429
12,718
52,143
(20,349)
31,794
(54)
(7,518)
24,223
(8,723)
15,500
59,277
(24,997)
34,280
7,992
712
1,387
10,090
44,370
(18,476)
25,894
(84)
(8,068)
17,742
(6,582)
11,160
61,107
(28,164)
32,943
7,139
1,233
3,048
11,420
44,363
(17,015)
27,348
(56)
(13,258)
14,035
(4,842)
9,193
51,919
(24,062)
27,857
8,044
769
1,866
10,680
38,537
(16,103)
22,434
(12)
(8,548)
13,874
(5,541)
8,333
95,754
(73,236)
(20,284)
109,396
2,758
114,388
64,812
(42,910)
(15,464)
100,602
2,356
109,396
106,218
(85,859)
(7,402)
86,104
1,541
100,602
100,520
(77,703)
(4,010)
66,878
420
86,104
23,099
(14,323)
(1,016)
57,567
1,549
66,878
388
(10,440)
2,051
61,718
3,850
57,567
22.3%
2.0%
49.6%
52.1%
21.0%
50.7%
45.1%
2.10
46.5%
0.6%
4.0%
10.0
3.5%
12.1%
1.7%
5.6%
13.3%
23.8%
2.1%
48.2%
52.5%
20.9%
56.2%
49.8%
2.29
42.6%
6.8%
15.4%
9.7
3.7%
14.0%
3.5%
6.1%
15.0%
23.5%
2.1%
46.5%
56.0%
20.0%
56.9%
50.2%
2.56
37.9%
17.5%
38.9%
9.7
3.5%
14.0%
3.1%
6.2%
14.3%
19.8%
1.7%
40.0%
57.8%
16.4%
63.3%
57.0%
2.40
40.4%
0.0%
21.4%
10.2
3.5%
13.2%
4.1%
5.3%
14.5%
19.5%
1.5%
31.6%
53.9%
15.5%
73.8%
68.0%
2.61
37.4%
15.1%
10.3%
10.2
3.5%
10.2%
3.0%
5.6%
13.2%
21.9%
1.5%
36.0%
53.7%
17.7%
78.4%
74.3%
2.39
40.3%
16.4%
-0.8%
13.8
3.6%
7.1%
2.2%
5.2%
9.9%
PROFITABILITY
Markup / return / interest earned
Markup / return / interest expensed
Net Markup / Interest income
Fee, commission, brokerage and exchange income
Capital gain & dividend income
Other income
Non interest income
Gross income
Administrative expenses and other charges
Profit before provisions
Donations
Provisions
Profit before taxation
Taxation
Profit after taxation
CASH FLOW STATEMENT - SUMMARY

Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
Cash and cash equivalents at the beginning of the year
Effect of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
FINANCIAL RATIOS
Return on equity (RoE)
Return on assets (RoA)
Profit before tax ratio
Gross spread ratio
Return on capital employed (ROCE)
Advances to deposits ratio (ADR) - gross
Advances to deposits ratio (ADR) - net
Income to expense ratio
Cost to revenue ratio
Growth in gross income
Growth in net profit after tax
Total assets to shareholders funds
Intermediation cost ratio
NPL ratio
Net infection ratio
Weighted average cost of debt
Capital adequacy ratio (CAR)
29
Growth at a Glance
December 31
2013
2012
2011
2010
2009
2008
SHARE INFORMATION
Cash dividend per share
Proposed bonus issue per share
Dividend yield (based on cash dividend)
Dividend payout ratio (total payout)
Earning per share (EPS)
Price earnings ratio (PE x)
Market value per share - at the end of the year
Market value per share - highest during the year
Market value per share - lowest during the year
Breakup value per share - Without surplus on revaluation of assets
Breakup value per share - With surplus on revaluation of assets
10.00
12.0%
65.8%
15.21
8.72
132.55
154.21
81.24
72.34
82.43
8.50
16.2%
58.2%
14.61
5.72
83.67
91.99
52.00
64.29
75.35
7.50
11.0%
59.2%
12.66
4.14
52.39
70.39
51.01
58.73
65.70
5.00
8.6%
54.8%
9.12
7.48
68.23
70.65
49.00
49.16
55.89
2.50
1.00
6.8%
42.4%
8.26
7.08
58.45
66.50
27.92
46.97
54.76
2.50
1.00
1.4%
42.5%
8.24
4.48
36.91
223.20
36.91
41.73
43.35
52,630
641,866
249,006
13,270
1,283
18
1,301
57,347
515,638
180,434
13,056
1,278
18
1,296
51,117
462,929
179,417
12,325
1,218
17
1,235
48,593
447,743
175,826
11,573
1,124
17
1,141
39,101
335,764
136,694
11,371
1,120
17
1,137
27,839
422,958
123,050
12,705
1,119
17
1,136
OTHER INFORMATION
Non - performing advances (NPLs)
Import Business
Export Business
Number of employees
Number of branches - Domestic
Number of branches - International
Number of branches - Total
VERTICAL AND HORTIZONTAL

BALANCE SHEET
December 31
2013
2012
2011
2010
2009
2008
Vertical Analysis
Assets
Investments - net
Advances - net
Other assets
Total assets
Deposits & Other Accounts
Sub-ordinated loans
Bills payable
Other liabilities
Total Liabilities
Share capital
Reserves
Equity - Tier 1
Total equity
30
Annual Report 2013
11.3%
2.9%
42.0%
38.7%
2.4%
2.7%
100.0%
12.2%
2.4%
39.0%
40.6%
2.7%
3.0%
100.0%
12.9%
1.5%
37.8%
41.8%
2.9%
3.1%
100.0%
12.3%
1.7%
32.1%
47.7%
3.2%
3.0%
100.0%
10.8%
3.7%
22.0%
57.1%
3.5%
2.9%
100.0%
9.5%
3.8%
19.2%
61.3%
3.0%
3.2%
100.0%
82.0%
4.0%
0.1%
1.6%
2.3%
90.0%
1.2%
3.3%
4.2%
8.8%
1.2%
10.0%
77.9%
7.7%
1.0%
0.8%
2.3%
89.7%
1.4%
3.2%
4.2%
8.8%
1.5%
10.3%
78.7%
6.4%
1.5%
0.8%
2.4%
89.7%
1.6%
3.2%
4.5%
9.2%
1.1%
10.3%
78.7%
6.4%
1.7%
0.7%
2.7%
90.2%
1.7%
3.1%
3.8%
8.6%
1.2%
9.8%
79.4%
5.7%
1.9%
0.8%
2.4%
90.2%
1.8%
3.1%
3.6%
8.4%
1.4%
9.8%
79.9%
7.3%
2.0%
0.9%
2.8%
92.8%
1.7%
2.6%
2.7%
7.0%
0.3%
7.2%
Growth at a Glance
December 31
2013
2012
2011
2010
2009
2008
HORIZONTAL ANALYSIS
Assets
Investments - net
Advances - net
Other assets
Total assets
198.7%
126.4%
364.3%
105.3%
136.5%
138.8%
166.8%
190.0%
96.3%
300.5%
98.2%
135.6%
136.2%
148.1%
174.8%
52.1%
253.1%
87.7%
127.5%
121.8%
128.7%
149.6%
52.3%
193.1%
89.9%
124.4%
106.9%
115.6%
116.2%
101.6%
117.0%
95.4%
121.7%
90.7%
102.4%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%

Deposits & Other Accounts
Sub-ordinated loans
Bills payable
Other liabilities
Total Liabilities
Share capital
Reserves
Equity - Tier 1
Total equity
171.2%
91.8%
5.5%
319.4%
138.3%
161.8%
121.0%
217.3%
256.8%
209.7%
753.4%
230.1%
144.4%
155.5%
77.7%
146.3%
120.9%
143.2%
121.0%
187.4%
225.3%
186.4%
825.4%
210.3%
126.8%
113.0%
94.4%
113.2%
111.5%
124.4%
121.0%
160.3%
209.6%
170.3%
520.1%
183.4%
113.9%
102.1%
99.9%
97.1%
111.3%
112.4%
121.0%
139.9%
158.1%
142.5%
502.1%
156.0%
101.8%
79.5%
100.0%
99.1%
88.4%
99.5%
110.0%
122.3%
133.6%
123.8%
528.1%
138.9%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
80.1%
13.4%
5.3%
1.2%
100.0%
81.1%
11.1%
3.5%
4.4%
100.0%
84.7%
10.9%
1.5%
2.9%
100.0%
85.5%
11.5%
1.0%
2.0%
100.0%
84.3%
9.8%
1.7%
4.2%
100.0%
82.9%
12.9%
1.2%
3.0%
100.0%
38.4%
29.5%
1.6%
10.1%
79.5%
38.6%
26.9%
5.0%
9.9%
80.3%
37.3%
24.5%
9.0%
10.5%
81.4%
36.0%
26.8%
11.6%
9.5%
83.9%
38.8%
23.5%
18.3%
6.7%
87.3%
38.4%
25.7%
13.7%
8.9%
86.7%
20.5%
100.0%
19.7%
100.0%
18.6%
100.0%
16.1%
100.0%
12.7%
100.0%
13.3%
100.0%
Interest / Return / Non Interest Income earned

Markup / Return / Interest earned
Fee, Commission, Brokerage and Exchange income
Capital gain & Dividend income
Other income
Total
140.3%
151.7%
629.8%
57.0%
145.3%
141.6%
124.6%
407.0%
213.0%
144.8%
135.7%
112.2%
164.0%
130.2%
132.9%
114.2%
99.3%
92.5%
74.3%
110.8%
117.7%
88.7%
160.3%
163.3%
115.9%
100.0%
100.0%
100.0%
100.0%
100.0%
Interest / Return / Non Interest Expense

Markup / Return / Interest expensed
Operating expenses
Provisions
Taxation
Total expense
145.1%
166.3%
16.9%
165.9%
133.3%
145.2%
151.0%
52.6%
161.7%
134.1%
128.9%
126.6%
87.9%
157.4%
124.7%
103.9%
115.2%
94.4%
118.8%
107.3%
117.0%
105.9%
155.1%
87.4%
116.7%
100.0%
100.0%
100.0%
100.0%
100.0%
223.4%
214.7%
186.0%
133.9%
110.3%
100.0%
PROFIT AND LOSS ACCOUNT

VERTICAL ANALYSIS
Interest / Return / Non Interest Income earned
Markup / Return / Interest earned
Fee, Commission, Brokerage and Exchange income
Capital gain & Dividend income
Other income
Total
Interest / Return / Non Interest Expense
Markup / Return / Interest expensed
Operating expenses
Provisions
Taxation
Total expense - percentage of total income
Total
HORIZONTAL ANALYSIS
31
Growth at a Glance
Statement of Value Added
2013
PKR million
2012
PKR million
Mark-up / return / interest earned - net of provisions

Fee, commission, brokerage and exchange income
Capital gain & dividend income
Other income
71,398
12,205
4,845
1,064
89,512
97.4%
16.6%
6.6%
1.5%
122.1%
69,009
10,025
3,131
3,975
86,140
96.0%
14.0%
4.4%
5.5%
119.9%
Administrative expenses
16,208
22.1%
14,283
19.9%
Value added
73,304
100.0%
71,857
100.0%
10,510
14.3%
10,023
13.9%
9,193
12.5%
8,960
12.5%
To Depositors
as profit on investments
28,353
38.7%
27,658
38.5%
To Institutions & individuals

as profit on borrowings
6,557
8.9%
7,289
10.1%
77
0.1%
35
0.0%
11,630
15.9%
13,466
18.7%
6,984
9.5%
4,425
6.2%
73,304
100.0%
71,857
100.0%
Distributed as follows:
To employees
as remuneration
To government
as income tax
To Society
as donations
To Shareholders
as dividends / bonus
Retained in Business
as reserves and retained profits
32
Annual Report 2013
UBL International Network
(Offices Addresses as of 30 Jan 2014)

INTERNATIONAL BRANCHES
UAE
Al Ain Branch
Mohammad Salem Owaida Jaber Al Khaily Building,

Ali ibn Ibi Talib Street, Oud Al Toba,
P.O. Box: 1141, Al-Ain - UAE
Tel: 00971-3-7083560
Fax: 00971-3-7666175
Al-Barsha Branch
Al Faraidooni Building, Shaikh Zayed Road,

Al Barsha, P.O. Box: 3846, Dubai - UAE
Tel: 00971-4-6085300 & 00971-4-6085301
Fax: 00971-4-3403645
Bur Dubai Branch
Bank Street Building, Khalid Bin Waleed Road,

P.O. Box: 1367, Dubai - UAE
Tel: 00971-4-6085200 & 00971-4-6085201
Fax: 00971-4-3510607
Deira Branch
Mohamed & Obaid Almulla Building,

Shop # 1, Plot # 115-0108, Murshid Bazar,
P.O. Box: 1000, Deira-Dubai - UAE
Tel: 00971-4-6085350 & 00971-4-6085351
Fax: 00971-4-2269209
Khalifa Main Branch
Hamad Suhail Al Khaily Building,

Khalifa Street, Abu Dhabi - UAE
Tel: 00971-2-5996555 & 00971-2-6719787
Fax: 00971-2-6719900
Musaffah Branch
M-14, Street 17
Mussafah, P.O. Box: 237
Abu Dhabi - U.A.E
Tel: 00971-2-5996400 & 00971-2-5548778
Fax: 00971-2-5548779
Sharjah Branch
Al-Majaz Building, King Faisal Street,

P.O. Box: 669, Sharjah - UAE
Tel: 00971-6-5979121 & 00971-6-5979122
Fax: 00971-6-5721200
Sheikh Hamdan Road Branch
Ghamran Buti Al Qubaisi Building,

Opp. Hamdan Centre,
Sheikh Hamdan Bin Mohamed Road,
P.O. Box: 2340, Abu Dhabi - UAE
Tel : 00971-2-5996450/458
Fax: 00971-2-6272134
BAHRAIN
Manama Branch
Delmon Tower,
Building No 117, Block No 304, Road No 385
Opp. National Bank of Bahrain, Next to Kuwait Finance House
Government Avenue
P.O. Box: 546, Kingdom of Bahrain
Tel : 00973-17-224032 & 00973-17-224101
Fax: 00973-17-224099
Seef Branch
BMMI Tower, Ground Floor

Road No. 2813,
Block No. 428, Seef District
Tel : 00973-17-560808
Fax: 00973-17-587552
Muharraq Branch
Building No. 1127, Block No. 215,

Road No.10
Muharraq Town,
Tel : 00973-17-343488
Fax: 00973-17-344793
QATAR
Corniche Main Branch
Sh. Jasim Bin Jaber Al-Thani Building,

Abdullah Bin Jassim Street,
P.O. Box: 242, Doha - Qatar
Tel : 00974-44254444
Fax: 00974-44416669
Salwa Road Branch
Qatar General Insurance Building

Beside New Tadamon Motors Showroom
Tel : 00974-44254461
Fax: 00974-44506026
West Bay Branch
Al Jazira Tower West Bay

Tel: 00974-44254470 & 00974-44254471
Fax: 00974-44110950
USA
New York Branch
80 Broad Street
New York, NY 10004-2209
USA
Tel: 001-212-943-1275
Fax: 001-212-9680557
33
UBL International Network
(Offices Addresses as of 30 Jan 2014)
YEMEN
Sanaa Branch
Dr. Mohammad Ahmed Othman Al-Absi Building,

Al-Zubairi Street,
P.O. Box: 1295, Sanaa, Republic of Yemen
Tel: 00967-1-409947 (Dir.) 00967-1-407540 (PABX)
Fax: 00967-1-408211
TANZANIA
UBL Bank (Tanzania) Ltd.

Diplomat House
26 Mkwepu / Kaluta Street,
P.O. Box: 5887.
Dar Es Salaam, Tanzania.
Tel: 00255-22-5510200
Fax: 00255-22-2136293
Hodeidah Branch
Essam Al-Shami Building,

Shahrah-e-Meena,
P.O. Box: 3927, Hodeidah, Republic of Yemen
Tel: 00967-3-201494 (Dir.) 00967-3-225560 (Gen.)
Fax: 00967-3-201153
Aden Branch
Aden Mall, Crater,

P.O. Box: 104, Aden, Republic of Yemen
Tel: 00967-2-269191, 00967-2-269063
Fax: 00967-2-269065
OBU EPZ
EPZ Branch (Karachi)

Export Processing Zone, Landhi Industrial Area,
Mehran Highway, Landhi, Karachi
Tel: 009221-35082301-3
Fax: 009221-35082305
REPRESENTATIVE OFFICES
CHINA
Beijing Rep. Office

Office # 2110, The Exchange Beijing,
No. 118, Jianguo Road,
Chaoyang District, Beijing,
100022, Peoples Republic of China
Tel : 0086-10-65675579
Fax: 0086-10-65675560
IRAN
Tehran Rep. Office

Unit # 26, 5th floor, Nahid Office Complex, No. 56,
West Nahid St. Valiasr Ave.,
Tehran 1967756685 Iran
Tel: 009821-22053977
Fax: 009821-26219963
SUBSIDIARIES
UNITED KINGDOM
United Bank UK
2 Brook Street,
London W1S 1BQ,
United Kingdom
Tel : 0044-20-72908000
Fax: 0044-20-76293054
SWITZERLAND
UBL Switzerland AG
P.O. Box: 1176,
Feldeggstrasse 55, CH-8034 Zurich - Switzerland
Tel : 0041-43-4991920
Fax: 0041-43-4991933
34
Annual Report 2013
ASSOCIATED COMPANY
OMAN
Oman United Exchange Co. LLC,
i) Ruwi Branch
P.O. Box: 889, Near Ruwi Police Station,
Postal Code 100, Ruwi, Muscat,
Sultanate of Oman
Tel : 00968-24794305, 00968-24782048
Fax: 00968-24794344
ii) Salalah Branch
P.O. Box: 2052, Postal Code 211,
Salalah, Sultanate of Oman
Tel : 00968-23290323
Fax: 00968-23290323
iii) Sohar Branch
Muscat, Sultanate of Oman
Tel : 00968-26847021
Fax: 00968-26847020
iv) Ghoubra Branch
Tel : 00968-24495645
Fax: 00968-24495642
v) Industrial Area Salalah Branch
P.O. Box: 2052,
Postal Code 211, Salalah,
Sultanate of Oman
Tel : 00968-23213264
Fax: 00968-23211260
vi) Barka Branch
P.O. Box: 889, Postal Code 100
Tel : 00968-26884864
Fax: 00968-26884891
vii) Duqm Branch
P.O. Box: 889, Postal Code 100
Duqm, Sultanate of Oman
Tel : 00968-25215105 / 00968-25215103
Fax: 00968-25215104
The year under review is the seventh financial year of Islamic

Banking Operations of UBL Ameen. Maintaining Shariah
compliance of highest possible standards and providing
quality services to customers have remained focal points.
Following are the brief highlights of the period under review:
1.
conducted with a vision to edify skills of staff in light

of teachings and character of Model of Excellence
The Holy Prophet.
3.
On the assets side, Bank primarily offered Murabaha,

Ijarah & Diminishing Musharaka. It is encouraging to note
that financing portfolio enhanced by 71% and closing
balance was Rs. 5 Bn in which Murabaha remained the
main mode of financing and comprised of 64% of total
assets. While Ijarah, Diminishing Musharaka & Salam
accounted for 17%, 14% & 5% respectively of total
financing.
Review of Products and Policies:

UBL Ameen product and policies, during the year, were
evaluated in detail and their concept, product framework,
process flows and features were discussed with me prior
to the approval.
Product Manuals of Murabaha, Ijarah & Diminishing

Musharakah were reviewed and were elaborated
and updated to comply with SBP instructions issued
from time to time and to serve the industry in the best
possible, convenient and Shariah-compliant manner.
All liability products were reviewed and Ameen

Premium Account, Ameen Premium Certificate &
Ameen Minor Saving Account were launched to
cater to different segments.
2.
On the liability side, UBL Ameen offered different

products and services under Qard & Mudaraba modes.
Deposits of the Bank showed an increase of 34% and
closed at Rs. 16.8 Bn.
4.
Training & Development:

Training, Learning and Application are only means of
professional and institutional development especially in
Islamic Banking where wrong application may jeopardize
the sanctity and validity. Hence, UBL Ameen has laid
great emphasis on training of staff. Following are the
main features:
40 sessions were held for General Islamic Banking
Training throughout the year. 130 members from
staff were trained during 2013.
One to one training sessions with staff were also

conducted on Branch visits.
Training Material and books were distributed in staff

for effective learning and understanding.
Conceptual Tests were taken to assess the level of

understanding of each staff.
Staff queries were resolved via emails and

teleconferencing sessions.
Trainings on Ethics and Moral development were
Advancement of IT System:
A sophisticated IT system which caters to all requirements
of Islamic Banking operations is necessary to streamline
daily affairs as advised by SBP: The IBIs shall have
in place an adequate IT based system which interalia
suitably caters to the requirements of allocation of (a)
deposits, (b) financing, investments and placements,
(c) income and expenses and (d) movement of assets
to/from different pools.(SBP-Instructions for P & L
Distribution & Pool Management, Clause 1.4)
Charity Policy & Profit Distribution Policy were also

reviewed and approved.
Growth of Assets & Deposits:
In line with the above, efforts are in process for

modernizing the system along with application of Shariah
standards where required. All 23 Branches (including
1 sub branch) have been successfully converted from
UniBank to Symbols which has brought IBI branches
on the same network with 1,283 branches of UBL
countrywide and has improved Islamic Banking customer
services.
5.
Profit Distribution Mechanism :

Profit and Loss Distribution and Pool Management is
one of the key functions of Islamic Banking. Continuous
research is being done in industry to further improve it,
in order to serve account holders in the best possible
manner. In general, State Bank of Pakistan detailed
instructions and guidelines for Profit and Loss Distribution
and Pool Management via Circular 03 of 2012, dated
November 19th, 2012 have been adopted especially
Clause 4.1.2 which states that Mudarib (Banks) share
shall not exceed 50% of the distributable profit.
35
UBL Ameen P & L Distribution system has been in

conformity with Shariah rulings. Further improvements
will be done, in near future, with upgradation of IT
systems.
6.
Effective Shariah Compliance:

Shariah Compliance is the most vital part of Islamic
Banking to ensure that all activities are transparent and
are in accordance with Shariah principles. Following are
distinctive features of UBL Ameens Shariah Compliance
process:
7.
Each corporate and consumer transaction is checked

before disbursement.
Financing agreements are reviewed prior and post

execution to ensure effective Shariah compliance
and application of Shariah guidelines.
Meetings and discussions are held with customers

for awareness on documentation and execution of
corporate transactions in Shariah compliant manner.
Transactional process flows are discussed before

approval of financing facilities.
Islamic Banking Promotion:

Islamic Banking has been growing at an annual rate of
30% and may double its share by 2020. UBL Ameen
efforts have been commendable in mass awareness
and promotion of Islamic Banking. Various Islamic
Finance Conferences and Exhibitions were attended and
sponsored throughout the year to boost Islamic Banking
along with effective marketing of UBL Ameen products
and services.
OPINION:
Based on the above facts and observations during the year
2013, I hereby report that overall Shariah Compliance of
UBL Ameen has been satisfactory and all activities have
been in accordance with rulings of Shariah.
Recommendations:
Growth and Profitability is directly related to effective

escalation of business and this requires team
building, expansion of business units and branch
network countrywide.
Profit-sharing ratios, profit weightages, pool working,

asset & deposit allocation for deposit products are
being monitored periodically.
Shariah Compliant Staff Financing facilities like Home

Financing & Car Financing should be introduced
immediately as per the staff financing policy of the
Bank. It is recommended to immediately implement
Islamic financing products for the staff.
Treasury deals and investments are being closely

monitored from Shariah perspective and cross
checked time to time for meticulous adherence to
Shariah standards.
I pray to Almighty, that He - The Merciful may bless us

) by means
persistence on The Right Path (
of which we can be prosperous in both worlds.
In accordance with SBP guidelines that IBIs should

prefer Takaful wherever feasible, majority of
Bank assets have been insured through Takaful
companies.
Sincere Regards,
Charity Distributions:
Charity of PKR 6,400,000/-, accumulated in form of
delayed payments, was distributed to reputable and
worthy charitable institutions in 2013, after detailed
screening and due diligence. Visits were made to
institutions prior and post disbursement to ensure the
need and proper utilization of funds.
Al hamdu lillah! During the year, all transactions and
earnings were reported to be Shariah compliant hence
no part was credited to charity account on the basis of
non compliance.
36
8.
Annual Report 2013
Mufti Abdul Rehman

Shariah Advisor
Statement of Compliance with the Code of Corporate

Governance for the year ended December 31, 2013
This statement is being presented to comply with the Code of
Corporate Governance (the Code) contained in the Listing Regulation
No. 35 of the Karachi, Lahore & Islamabad Stock Exchanges for the
purpose of establishing a framework of good governance, whereby
a listed company is managed in compliance with the best practices
of corporate governance.
United Bank Limited (the Bank) has applied the principles contained
in the Code in the following manner:
1.
The Bank encourages representation of independent Directors,

non-executive Directors and Directors representing minority
interests on its Board of Directors. At present the Board
includes:
11.
The Directors Report for the year has been prepared in

compliance with the requirements of the Code and fully
describes the salient matters required to be disclosed.
12.
The financial statements of the Bank were duly endorsed by

the Chief Executive Officer and the Chief Financial Officer
before approval of the Board.
13.
The Directors, Chief Executive Officer and Executives do

not hold any interest in the shares of the Bank other than as
disclosed in the pattern of shareholding.
14.
The Bank has complied with all corporate and financial

reporting requirements of the Code.
Category
Names
15.
Independent
Directors
Mr. Amin Uddin

The Board has formed an Audit Committee. It comprises of

three members, all of whom are non-executive Directors.
16.
Executive Director
Mr. Atif R. Bokhari, President & CEO
Non-Executive
Directors

Mr. Seerat Asghar
The meetings of the Audit Committee were held at least once

every quarter prior to the approval of interim and final results
of the Bank as required by the Code. The terms of reference
of the committee have been formulated and advised to the
committee for compliance.
17.
The Board has also constituted a Human Resource and

Compensation Committee comprising of two non-executive
Directors and one executive Director. The Chairman of the
committee is a non-executive Director.
18.
The Board has set up an effective internal audit function.

Personnel of the Internal Audit department are suitably
qualified and experienced for the purpose and are conversant
with the policies and procedures of the Bank.
19.
The statutory auditors of the Bank have confirmed that they

have been given a satisfactory rating under the Quality Control
Review Program of the Institute of Chartered Accountants
of Pakistan, that they or any of the partners of the firm, their
spouses and minor children do not hold shares of the Bank
and that the firm and all its partners are in compliance with
International Federation of Accountants (IFAC) guidelines
on Code of Ethics as adopted by the Institute of Chartered
Accountants of Pakistan.
20.
The statutory auditors or the persons associated with them

have not been appointed to provide other services except in
accordance with the listing regulations and the auditors have
confirmed that they have observed IFAC guidelines in this
regard.
21.
The Closed Period, prior to the announcement of interim / final

results, and business decisions, which may materially affect
the market price of the Banks securities, was determined and
intimated to Directors, employees and the stock exchanges.
22.
Material / price sensitive information has been disseminated

among all market participants at once through the stock
exchanges.
23.
We confirm that all other material principles enshrined in the

Code have been complied with.
The independent directors meet the criteria of independence

under clause I (b) of the Code.
2.
The Directors have confirmed that none of them is serving as

a Director in more than seven listed companies, including the
Bank.
3.
All the resident Directors of the Bank are registered as

taxpayers and none of them has defaulted in payment of any
loan to a banking company, a DFI or an NBFI or, being a
member of a stock exchange, has been declared as a defaulter
by that stock exchange.
4.
Two casual vacancies occurred on the Board on December

19, 2013. These vacancies shall be filled within the prescribed
timelines.
5.
The Bank has prepared a Code of Conduct and has ensured

that appropriate steps have been taken to disseminate it
throughout the Bank along with its supporting policies and
procedures.
6.
The Board has approved a vision / mission statement, overall

corporate strategy and significant policies of the Bank. A
complete record of particulars of significant policies along with
the dates on which they were approved or amended has been
maintained.
7.
All the powers of the Board have been duly exercised and
decisions on material transactions, including the appointment
and the determination of remuneration and terms and
conditions of employment of the Chief Executive Officer and
non-executive Directors have been taken by the Board.
8.
The meetings of the Board were presided over by the Chairman

and, in his absence, by the Deputy Chairman.
The Board met at least once in every quarter. Written notices of
the Board meeting, along with the agenda and working papers,
were circulated at least seven days before the meetings. The
minutes of the meetings were appropriately recorded and
circulated.
9.
10.
The appointments of the Chief Financial Officer, the Company

Secretary and the Head of Internal Audit including their
remuneration and terms of employment have been approved
by the Board.
In compliance with Clause (xi) of the Code, two Directors
have completed the Corporate Governance Leadership Skills
program conducted by the Pakistan Institute of Corporate
Governance.
For and on behalf of the Board of Directors

Chairman
Date: February 19, 2014
37
BDO Ebrahim & Co.
2nd Floor, Block C
Lakson Square Building No. 1
Sarwar Shaheed Road
Karachi 74200
KPMG Taseer Hadi & Co.
Sheikh Sultan Trust Building No. 2
Beaumont Road
Karachi 75330
Review Report to the Members on the Statement of Compliance

with the best practices of Code of Corporate Governance
We have reviewed the Statement of Compliance with the best
practices (the Statement) contained in the Code of Corporate
Governance (the Code) for the year ended December 31,
2013 prepared by the Board of Directors of UNITED BANK
LIMITED (the Bank) to comply with the Listing Regulations of
the Karachi Stock Exchange Limited, Lahore Stock Exchange
Limited and Islamabad Stock Exchange Limited, where the
Bank is listed.
The responsibility for compliance with the Code is that of the
Board of Directors of the Bank. Our responsibility is to review,
to the extent where such compliance can be objectively
verified, whether the Statement reflects the status of the
Banks compliance with the provisions of the Code and report
if it does not. A review is limited primarily to inquiries of the
Banks personnel and review of various documents prepared
by the Bank to comply with the Code.
justification for using such alternate pricing mechanism.

Further, all such transactions are also required to be
separately placed before the Audit Committee. We are only
required and have ensured compliance of requirement to the
extent of approval of related party transactions by the Board
of Directors and placement of such transactions before the
Audit Committee. We have not carried out any procedures
to determine whether the related party transactions were
undertaken at arms length price or not.
Based on our review, nothing has come to our attention which
causes us to believe that the Statement does not appropriately
reflect the Banks compliance, in all material respects, with
the best practices contained in the Code as applicable to the
Bank for the year ended December 31, 2013.
As part of our audit of financial statements we are required

to obtain an understanding of the accounting and internal
control systems sufficient to plan the audit and develop an
effective audit approach. We are not required to consider
whether the Boards statement on internal control covers all
risks and controls, or to form an opinion on the effectiveness
of such internal controls, the Banks corporate governance
procedures and risks.
Further, the Listing Regulations require the Bank to place
before the Board of Directors for their consideration and
approval, related party transactions distinguishing between
transactions carried out on terms equivalent to those that
prevail in arms length transactions and transactions which
are not executed at arms length price recording proper
BDO Ebrahim & Co.
Audit Engagement Partner
Zulfikar Ali Causer
Karachi
38
Annual Report 2013

Mazhar Saleem
Annual Statement on Internal Controls - 2013
The Internal Control System comprises of various interrelated components including the Control Environment,
Risk Assessment, Control Activities, Information &
Communication and Monitoring.
It is the responsibility of the Banks management to
establish an Internal Control System to maintain an
adequate and effective Internal Control Environment. An
Internal Control System is a process designed to identify
and mitigate the risk of failure to achieve overall business
objectives of the Bank. Internal controls and policies are
designed to provide reasonable assurance regarding the
effectiveness and efficiency of the Banks operations,
reliability of financial information and compliance with
applicable laws and regulations.
Management ensures an efficient and effective Internal
Control System by carrying out risk assessment,
indentifying controls, reviewing pertinent policies /
procedures and establishing relevant control procedures
and monitoring systems.
Evaluation
The Banks Internal Control System has been designed
to provide reasonable assurance to the shareholders
and Board of Directors; however these systems may
not entirely eliminate the risk of misreporting and failure
of certain controls under a changing environment. The
Bank endeavours to follow the State Bank of Pakistans
guidelines on Internal Controls.
All significant and material findings of the internal &

external auditors and regulators were addressed on a
priority basis by the management and their status was
reported periodically to the Board Audit Committee,
who ensured that management has taken appropriate
corrective actions and has put in place a system to
minimize repetition to ensure strengthening of the control
environment.
As required by the SBP, the External Auditors were
engaged to prepare a Long Form Report on Internal
Controls over Financial Reporting (ICFR) as of December
31, 2012. No material deficiency was observed in the
report submitted to the SBP. Internal Audit carried out
testing of the effectiveness of ICFR prevalent throughout
the Bank for the year 2013. None of the deficiencies
identified are expected to have a material impact on
Financial Reporting.
The Bank is continuously making efforts to ensure that
an effective and efficient Internal Control System remains
active & implemented through consistent & continuous
monitoring that would help in further improving the overall
control environment.
Based upon the results achieved from reviews and audits
conducted during the year, management considers that
the existing Internal Control System is adequate and has
been effectively implemented and monitored, though
room for improvement always exists.
Evaluation of the Banks Internal Control System

comprises of different levels of monitoring activities i.e. Line
Management, Internal Control and Internal Audit. During
the year, Line Management has further strengthened
their internal system of day to day monitoring of control
breaches for prompt corrective actions. Compliance and
Internal Control Group conducted reviews of processes
in branches to identify gaps in execution with special
emphasis on the implementation of regulatory instructions.
Internal Audit also performed audit and review activities to
evaluate the implementation of controls and ensure the
existence of a healthy control environment throughout the
Bank.
__________________
Rayomond Kotwal
Chief Financial Officer
_________________
Atif Rasheed
Head Compliance &
Control Assurance
_________________
M. Ejazuddin
Group Executive
Audit & Risk Review
_________________
Atif R. Bokhari
President
39
Financial
Statements
40
Annual Report 2013
BDO Ebrahim & Co.
2nd Floor, Block C
Lakson Square Building No.1
Sarwar Shaheed Road
Karachi 74200
Beaumont Road
Karachi 75530

We have audited the annexed unconsolidated statement of financial
position of UNITED BANK LIMITED (the Bank) as at December
31, 2013 and the related unconsolidated profit and loss account,
unconsolidated statement of comprehensive income, unconsolidated
cash flow statement, and unconsolidated statement of changes in
equity, together with the notes forming part thereof (here-in-after
referred to as the financial statements) for the year then ended,
in which are incorporated the unaudited certified returns from the
branches except for forty branches which have been audited by us
and twelve branches audited by auditors abroad and we state that
we have obtained all the information and explanations which, to the
best of our knowledge and belief, were necessary for the purposes
of our audit.
It is the responsibility of the Banks Board of Directors to establish
and maintain a system of internal control, and prepare and present
the financial statements in conformity with approved accounting
standards and the requirements of the Banking Companies
Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984
(XLVII of 1984). Our responsibility is to express an opinion on these
statements based on our audit.
We conducted our audit in accordance with the International
Standards on Auditing as applicable in Pakistan. These standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of any
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
policies and significant estimates made by management, as well as,
evaluating the overall presentation of the financial statements. We
believe that our audit provides a reasonable basis for our opinion and
after due verification, which in case of loans and advances covered
more than sixty percent of the total loans and advances of the Bank,
we report that:
(a)
(b)
in our opinion proper books of account have been kept by the

Bank as required by the Companies Ordinance, 1984 (XLVII
of 1984), and the returns referred to above received from the
branches have been found adequate for the purposes of our
audit;
in our opinion:
(i)
the notes thereon have been drawn up in conformity

with the Banking Companies Ordinance, 1962 (LVII of
1962), and the Companies Ordinance, 1984 (XLVII of
1984), and are in agreement with the books of account
and are further in accordance with accounting policies
consistently applied except for the change in accounting
policy as stated in note 5.1 to the accompanying
financial statements, with which we concur;
(ii)
the expenditure incurred during the year was for the

purpose of the Banks business; and
(iii)
the business conducted, investments made and the

expenditure incurred during the year were in accordance
with the objects of the Bank and the transactions of the
Bank which have come to our notice have been within
the powers of the Bank;
(c)
in our opinion and to the best of our information and according

to the explanations given to us the unconsolidated statement
of financial position, unconsolidated profit and loss account,
unconsolidated statement of comprehensive income,
unconsolidated cash flow statement and unconsolidated
statement of changes in equity, together with the notes
forming part thereof conform with approved accounting
standards as applicable in Pakistan and give the information
required by the Banking Companies Ordinance, 1962 (LVII of
1962), and the Companies Ordinance, 1984 (XLVII of 1984),
in the manner so required and give a true and fair view of the
state of the Banks affairs as at December 31, 2013 and its
true balance of the profit, its comprehensive income, its cash
flows and changes in equity for the year then ended; and
(d)
in our opinion zakat deductible at source under the Zakat and

Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the
Bank and deposited in the Central Zakat Fund established
under Section 7 of that Ordinance.
The financial statements of the Bank for the year ended December 31,
2012 were audited by BDO Ebrahim & Co., Chartered Accountants
and Ernst & Young Ford Rhodes Sidat Hyder & Co., Chartered
Accountants who had expressed an unqualified opinion thereon
dated February 24, 2013.
the unconsolidated statement of financial position and

unconsolidated profit and loss account together with
BDO Ebrahim & Co.
Zulfikar Ali Causer

Mazhar Saleem

Karachi
41
Unconsolidated Statement of Financial Position

As at December 31, 2013
Note
ASSETS
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Performing
Non-performing - net of provision
Deferred tax asset - net
Other assets
2013
2012
2011
------------------------------ (Rupees in 000) -----------------------------Restated
Restated
6
7
8
9
88,520,725
25,867,497
28,835,115
423,777,250
94,161,446
15,234,326
21,953,458
349,590,182
86,216,168
14,385,823
11,890,082
294,410,661
10
10
382,280,142
8,533,320
390,813,462
24,607,937
27,316,665
1,009,738,651
350,500,822
13,862,980
364,363,802
24,431,069
26,800,312
896,534,595
314,187,793
11,159,415
325,347,208
22,981,878
1,304,512
22,671,107
779,207,439
16,590,884
40,573,874
827,847,738
665,328
1,087,240
22,059,590
908,824,654
100,913,997
7,600,633
68,720,266
698,429,697
9,319,264
856,528
19,369,917
804,296,305
92,238,290
5,879,043
49,953,251
612,980,139
11,317,080
18,649,770
698,779,283
80,428,156
12,241,798
33,681,210
42,634,545
88,557,553
12,356,444
100,913,997
12,241,798
29,044,219
37,415,599
78,701,616
13,536,674
92,238,290
12,241,798
24,847,019
34,809,364
71,898,181
8,529,975
80,428,156
11
12
LIABILITIES
Bills payable
Borrowings
Deposits and other accounts
Subordinated loans
Liabilities against assets subject to finance lease
Deferred tax liability - net
Other liabilities
14
15
16
17
18
19
NET ASSETS
REPRESENTED BY:
Share capital
Reserves
20
Surplus on revaluation of assets - net of deferred tax
21
CONTINGENCIES AND COMMITMENTS
22
The annexed notes from 1 to 48 and annexures form an integral part of these unconsolidated financial statements.
Atif R. Bokhari
President &
Chief Executive Officer
42
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Unconsolidated Profit and Loss Account

For the year ended December 31, 2013
Note
Mark-up / return / interest earned

Mark-up / return / interest expensed
Net mark-up / interest income
Provision against loans and advances - net
Provision against lendings to financial institutions - net
Provision for diminution in value of investments - net
Bad debts written off directly
24
25
72,846,281
34,910,356
37,935,925
73,507,415
34,947,698
38,559,717
10.4
8.6
9.3
10.5
1,055,067
60,509
5,871
181,724
1,303,171
36,632,754
3,282,893
168,492
400,524
284,991
4,136,900
34,422,817
10,049,350
2,074,118
2,155,628
2,777,035
(6,390)
1,064,054
18,113,795
54,746,549
8,162,535
2,664,242
1,862,585
464,386
2,236
3,975,234
17,131,218
51,554,035
28
29
30
31
26,045,441
145,073
499,746
249,377
26,939,637
27,806,912
23,744,582
361,928
531,106
64,984
24,702,600
26,851,435
32
32
32
8,242,269
54,398
896,290
9,192,957
18,613,955
8,947,398
497,000
(484,321)
8,960,077
17,891,358
Net mark-up / return / interest income after provisions

Non Mark-up / Interest Income
Fee, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Unrealized (loss) / gain on revaluation of investments classified as held for trading
Other income
Total non mark-up / interest income
Non Mark-up / Interest Expenses
Other provisions - net
Workers Welfare Fund
Other charges
Total non mark-up / interest expenses
Taxation - Current
- Prior
- Deferred
2013
2012
----------- (Rupees in 000) -----------Restated
26
9.4
27
---------------- (Rupees) ---------------Restated

Earnings per share - basic and diluted
33
15.21
14.61
Atif R. Bokhari
President &
Amin Uddin
Director
Seerat Asghar
Director

Chairman
43
Unconsolidated Statement of Comprehensive Income

2013
2012
------------ (Rupees in 000) -----------
Restated
18,613,955
17,891,358
Other comprehensive income:

Items that will never be reclassified to profit or loss
Actuarial gain / (loss) on defined benefit obligations
Related deferred tax (charge) / reversal
44,613
(15,615)
28,998
(131,407)
45,993
(85,414)
Items that are or may be reclassified to profit or loss

Exchange differences on translation of net investment
in foreign branches
2,757,826
Gain on cash flow hedges

Related deferred tax charge on cash flow hedges
2,355,526
27,337
(9,568)
17,769
Comprehensive income transferred to equity - net of tax
63,078
(22,077)
41,001
2,804,593
2,311,113
21,418,548
20,202,471
Surplus arising on revaluation of assets has been reported in accordance with the requirements of the Companies Ordinance,
1984 and the directives of the State Bank of Pakistan in a separate account below equity.
Atif R. Bokhari
President &
44
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Unconsolidated Cash Flow Statement

Note
CASH FLOW FROM OPERATING ACTIVITIES

Less: Dividend income
2013
2012
------------------ (Rupees in 000) -------------------
27,806,912
2,074,118
25,732,794
26,851,435
2,664,242
24,187,193
1,698,684
420,243
499,746
871,549
1,055,067
60,509
5,871
(24,893)
181,724
27,337
6,390
26,210
4,828,437
30,561,231
1,506,194
405,878
531,106
806,923
3,282,893
168,492
400,524
(1,753,199)
249
(24,879)
284,991
63,078
(2,236)
190,619
5,860,633
30,047,826
(6,942,166)
(2,907,591)
(27,686,451)
(1,635,680)
(39,171,888)
(10,231,868)
(3,774,334)
(42,546,853)
(1,393,102)
(57,946,157)
Receipts / (payments) on account of staff retirement benefits

Income taxes paid
Net cash inflow from operating activities
8,990,251
(28,146,392)
129,418,041
1,928,057
112,189,957
103,579,300
995,809
(8,821,029)
95,754,080
1,721,590
18,767,015
85,449,558
(645,914)
105,292,249
77,393,918
(233,436)
(12,348,308)
64,812,174
CASH FLOW FROM INVESTING ACTIVITIES

Net investment in securities
Dividend income received
Investment in operating fixed assets
Sale proceeds from disposal of operating fixed assets
Net cash outflow from investing activities
(73,005,161)
2,039,340
(2,443,349)
173,359
(73,235,811)
(42,282,964)
2,708,558
(3,433,626)
97,907
(42,910,125)
NET CASH OUTFLOW FROM FINANCING ACTIVITIES

Repayments of subordinated loans
Dividends paid
Net cash outflow from financing activities
(8,653,936)
(11,629,709)
(20,283,645)
(1,997,816)
(13,465,978)
(15,463,794)
2,757,826
4,992,450
2,355,526
8,793,781
109,395,772
100,601,991
114,388,222
109,395,772
Adjustments:
Depreciation
Amortization
Provision for retirement benefits
Reversal of provision in respect of investments disposed off during the year
Provision against off balance sheet items
Gain on sale of operating fixed assets - net
Bad debts written-off directly
Amortization of cash flow hedges
Unrealized loss / (gain) on revaluation of investments classified as held for trading
Provision against other assets
Decrease / (increase) in operating assets

Held for trading securities
Advances
Other assets (excluding advance taxation)
(Decrease) / increase in operating liabilities

Bills payable
Borrowings
Other liabilities (excluding current taxation)
Exchange differences on translation of net investment in foreign branches

Increase in cash and cash equivalents
34
Atif R. Bokhari
President &
Amin Uddin
Director
Seerat Asghar
Director

Chairman
45
Unconsolidated Statement of Changes in Equity

Share
capital
Statutory
reserve
Capital reserves
UnappropTotal
riated profit
Exchange
Cash flow
translation
hedge reserve
reserve
------------------------------------------------------------- (Rupees in 000) -----------------------------------------------------------Balance as at December 31, 2011 - as reported
12,241,798
15,996,864
8,912,150
(61,995)
33,534,116
70,622,933
Restatement due to change in accounting policy (Refer note 5.1)

Balance as at December 31, 2011 - (Restated)
12,241,798
15,996,864
8,912,150
(61,995)
1,275,248
34,809,364
1,275,248
71,898,181
Final cash dividend - December 31, 2011 declared

subsequent to the year end at Rs.6.0 per share
(7,345,078)
(7,345,078)
Interim cash dividend - March 31, 2012 declared at Re.1.0 per share
(1,224,180)
(1,224,180)
Interim cash dividend - June 30, 2012 declared at Rs.2.0 per share
(2,448,360)
(2,448,360)
Interim cash dividend - September 30, 2012 declared at Rs.2.0 per share
(2,448,360)
(13,465,978)
(2,448,360)
(13,465,978)
Profit after taxation for the year ended December 31, 2012 - (Restated)
Other comprehensive income - net of tax (Restated)
Total comprehensive income for the year ended December 31, 2012 - (Restated)
2,355,526
2,355,526
41,001
41,001
17,891,358
(85,414)
17,805,944
17,891,358
2,311,113
20,202,471
Transfer from surplus on revaluation of fixed assets

to unappropriated profit - net of tax
66,942
66,942
Transfer to statutory reserve
1,800,673
(1,800,673)
12,241,798
17,797,537
11,267,676
(20,994)
37,415,599
78,701,616

(4,284,629)
(4,284,629)
Interim cash dividend - March 31, 2013 declared at Rs.2.0 per share
(2,448,360)
(2,448,360)
Interim cash dividend - June 30, 2013 declared at Rs.2.0 per share
(2,448,360)
(2,448,360)
Interim cash dividend - September 30, 2013 declared at Rs.2.0 per share
(2,448,360)
(11,629,709)
(2,448,360)
(11,629,709)
Profit after taxation for the year ended December 31, 2013
Other comprehensive income - net of tax
Total comprehensive income for the year ended December 31, 2013
2,757,826
2,757,826
17,769
17,769
18,613,955
28,998
18,642,953
18,613,955
2,804,593
21,418,548

67,098
67,098
1,861,396
(1,861,396)
12,241,798
19,658,933
14,025,502
(3,225)
42,634,545
88,557,553
Transactions with owners for the year ended December 31, 2012

Transactions with owners for the year ended December 31, 2013
Balance as at December 31, 2013
Appropriations recommended by the Board of Directors subsequent to the year ended December 31, 2013 are disclosed in note 46 to these unconsolidated financial statements.
Atif R. Bokhari
President &
46
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Notes to and forming part of the Unconsolidated Financial Statements

1.
STATUS AND NATURE OF BUSINESS

United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial
banking and related services. The Banks registered office and principal office are situated at UBL Building, Jinnah
Avenue, Blue Area, Islamabad and at State Life Building No. 1, I. I. Chundrigar Road, Karachi, respectively. The
Bank operates 1,283 (2012: 1,278) branches inside Pakistan including 22 (2012: 19) Islamic Banking branches and
1 (2012: 1) branch in Karachi Export Processing Zone. The Bank also operates 18 (2012: 18) branches outside
Pakistan as at December 31, 2013. The Bank is a subsidiary of Bestway (Holdings) Limited which is incorporated in
the United Kingdom.
The Banks ordinary shares are listed on all three stock exchanges in Pakistan. Its Global Depository Receipts
(GDRs) are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities Market.
These GDRs are also eligible for trading on the International Order Book System of the London Stock Exchange.
Further, the GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule
144A under the US Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
2.
BASIS OF PRESENTATION
2.1
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic
modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of
trade-related modes of financing include purchase of goods by banks from their customers and immediate resale
to them at appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these
arrangements are not reflected in these unconsolidated financial statements as such, but are restricted to the amount
of facility actually utilized and the appropriate portion of mark-up thereon. The Islamic Banking branches of the Bank
have complied with the requirements set out under the Islamic Financial Accounting Standards issued by the Institute
of Chartered Accountants of Pakistan and notified under the provisions of the Companies Ordinance, 1984.
2.2
The financial results of the Islamic Banking branches of the Bank have been included in these unconsolidated financial
statements for reporting purposes, after eliminating material inter-branch transactions / balances. Key financial
figures of the Islamic Banking branches are disclosed in note 45 to these unconsolidated financial statements.
3.
STATEMENT OF COMPLIANCE
3.1
These unconsolidated financial statements have been prepared in accordance with approved accounting standards
as applicable in Pakistan, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance,
1962 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP.
Approved accounting standards comprise of International Financial Reporting Standards (IFRS) and interpretations
issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued
by the Institute of Chartered Accountants of Pakistan. Wherever the requirements of the Companies Ordinance,
1984, the Banking Companies Ordinance, 1962 or the directives issued by the SECP and the SBP differ with the
requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984, the Banking Companies
Ordinance, 1962 or the said directives prevail.
3.2
The SBP, vide BSD Circular letter No. 10, dated August 26, 2002 has deferred the applicability of International
Accounting Standard 39, Financial Instruments: Recognition and Measurement and International Accounting
Standard 40, Investment Property for banking companies till further instructions. Further, according to the notification
of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, IFRS 7, Financial Instruments: Disclosures has not
been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the
preparation of these unconsolidated financial statements. However, investments have been classified and valued in
accordance with the requirements of various circulars issued by the SBP.
3.3
These unconsolidated financial statements represent the separate financial statements of the Bank. The consolidated
financial statements of the Bank and its subsidiary companies are presented separately.
3.4
Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following revised standards, amendments and interpretations with respect to the approved accounting standards
would be effective from the dates mentioned below against the respective standard or interpretation:
47

Effective date
(annual periods beginning
on or after)
Standard, Interpretation or Amendment

IFRIC 21 - An interpretation on the accounting for levies imposed by governments
January 01, 2014
IAS 32
- Offsetting Financial Assets and Financial Liabilities - (Amendment)
January 01, 2014
IAS 36
- Impairment of Assets - (Amendment)
January 01, 2014
IAS 39
- Financial Instruments: Recognition and Measurement (Amendment)
January 01, 2014
IAS 19
- Employee Benefits (Amendment)
July 01, 2014
The Bank expects that the adoption of the above amendments and interpretations will not affect its financial
statements in the period of initial application.
In addition to the above amendments and interpretations, improvements to the following accounting standards
have also been issued by IASB. Such improvements are generally effective for accounting periods beginning on
or after July 01, 2014. The Bank expects the adoption of such improvements to the standards will not affects its
financial statements in the period of initial application.
IFRS 2 - Share-based Payment
IFRS 3 - Business Combinations
IFRS 8 - Operating Segments
IAS 16 - Property, plant and equipment - (Amendment)
IAS 38 - Intangible Assets - (Amendment)
IAS 24 - Related Party Disclosures
IAS 40 - Investment Property
The Bank expects that such improvements to the standards will not have any material impact on the Banks
The following new standards have been issued by the IASB, but have not yet been notified by the SECP for application
in Pakistan.
Standard or Interpretation
IFRS 9 - Financial Instruments: Classification and Measurement
IASB Effective date

(annual periods beginning
on or after)
Not yet notified by IASB
IFRS 10 - Consolidated Financial Statements
January 01, 2013
IFRS 11 - Joint Arrangements
January 01, 2013
IFRS 12 - Disclosure of Interests in Other Entities
January 01, 2013
IFRS 13 - Fair Value Measurement
January 01, 2013
4.
BASIS OF MEASUREMENT
4.1
Accounting convention
These unconsolidated financial statements have been prepared under the historical cost convention except that
certain operating fixed assets have been stated at revalued amounts and certain investments and derivative financial
instruments have been stated at fair value.
48
Annual Report 2013

4.2
Critical accounting estimates and judgments

The preparation of these unconsolidated financial statements in conformity with approved accounting standards requires
management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and income
and expenses. It also requires management to exercise judgment in the application of its accounting policies. The estimates
and assumptions are based on historical experience and various other factors that are believed to be reasonable under the
circumstances. These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future
periods if the revision affects both current and future periods.
Significant accounting estimates and areas where judgments were made by management in the application of accounting policies
are as follows:
i)
ii)
iii)
iv)
v)
vi)
vii)
classification of investments (notes 5.4 and 9)

provision against investments (notes 5.4 and 9.3), lendings to financial institutions (note 8.6) and advances (notes 5.5 and
10.4)
income taxes (notes 5.8 and 32)
staff retirement benefits (notes 5.10 and 36)
fair value of derivatives (notes 5.15.2 and 19.3)
operating fixed assets, depreciation and amortization (notes 5.6 and 11)
impairment (note 5.7)
5.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1
Change in accounting policy

The Bank has adopted the following amended accounting standard which became effective during the year. Other than this,
the accounting policies adopted in the preparation of these unconsolidated financial statements are consistent with those of the
previous financial year.
IAS 19 - Employee Benefits (Revised)
During the year the Bank has adopted IAS-19 (Revised) effective from January 1, 2013. The revised standard has removed the
option to defer recognition of actuarial gains and losses (i.e., the corridor approach) for defined benefit plans. As revised, actuarial
gains and losses are recognized in other comprehensive income when they occur. Amounts recorded in the profit and loss account
are limited to current and past service costs, gains or losses on settlements, and net interest income / expense. All other changes
in net defined benefit obligations are recognized directly in other comprehensive income with no subsequent recycling through the
profit and loss account.
The adoption of the revised standard has resulted in a change in the Banks accounting policy related to recognition of actuarial gains
and losses (note 5.10.3). Consequently, the Bank now recognizes all actuarial gains and losses directly in other comprehensive
income with no subsequent recycling through the profit and loss account.
The change in accounting policy has been applied retrospectively. The effect of the change in accounting policy on the current and
prior period financial statements have been summarized below:
2013
2012
2011
------------------------(Rupees in 000)--------------------Impact on Statement of Financial Position
Increase in other assets
(Decrease) in deferred tax assets - net
Increase in deferred tax liabilities - net
(Decrease) in other liabilities
Increase in unappropriated profit
Impact on Profit and Loss Account
Increase in administrative expenses
(Decrease) in tax expense
Impact on Other Comprehensive Income
Recognition of actuarial gain / (loss) - net of deferred tax
(Decrease) in earnings per share (Re. / share)
58,964
542,092
(1,489,869)
1,006,741
1,595,173
578,558
(57,849)
1,074,464
161,391
(56,487)
177,492
(62,122)
28,998
(85,414)
(0.09)
(0.10)
1,744,154
(686,673)
(217,767)
1,275,248
49

5.2
Cash and cash equivalents

Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury
banks and balances with other banks.
5.3
Lendings to / borrowings from financial institutions

The Bank enters into transactions of reverse repos and repos at contracted rates for a specified period of time.
These are recorded as under:
5.3.1
Purchase under resale agreements

Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions.
The differential between the purchase price and the resale price is amortized over the period of the agreement and
recorded as income.
Securities held as collateral are not recognized in the unconsolidated financial statements, unless these are sold
to third parties, in which case the obligation to return them is recorded at fair value as a trading liability under
borrowings from financial institutions.
5.3.2
Sale under repurchase agreements

Securities sold subject to a repurchase agreement (repo) are retained in the unconsolidated financial statements
as investments and the counterparty liability is included in borrowings from financial institutions. The differential
between the sale price and the repurchase price is amortized over the period of the agreement and recorded as an
expense.
5.4
Investments
Investments of the Bank, other than investments in subsidiaries and associates, are classified as held for trading,
held to maturity and available for sale.
Held for trading
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices,
interest rate movements and dealers margin, or are securities included in a portfolio in which a pattern of short term
profit taking exists.
Held to maturity
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Bank has the
positive intent and ability to hold to maturity.
Available for sale
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading
or held to maturity categories.
Initial measurement
All regular way purchases and sales of investments are recognized on the trade date, i.e., the date that the Bank
commits to purchase or sell the investment. Regular way purchases or sales are purchases or sales of investments
that require delivery of investments within the time frame generally established by regulation or convention in the
market place.
Investments are initially recognized at fair value which, in the case of investments other than held for trading,
includes transaction costs associated with the investments. Transaction costs on investments held for trading are
expensed as incurred.
Subsequent measurement
Held for trading
These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included
in the profit and loss account.
50
Annual Report 2013

Held to maturity
These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized to
reflect irrecoverable amounts.
Available for sale
Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair value.
Any surplus / deficit arising thereon is kept in a separate account shown in the statement of financial position below
equity and is taken to the profit and loss account when realized upon disposal or when the investment is considered to be
impaired.
Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities is
calculated with reference to the net assets of the investee company as per the latest available audited financial statements.
A decline in the carrying value is charged to the profit and loss account. A subsequent increase in the carrying value, upto
the cost of the investment, is credited to the profit and loss account. Investments in other unquoted securities are valued
at cost less impairment, if any.
Provisions for diminution in the value of term finance certificates and Sukuks are made as per the ageing criteria prescribed
by the Prudential Regulations issued by the SBP. Provisions for diminution in the value of other securities are made for
impairment, if any.
Investments in Subsidiaries and Associates
Investments in subsidiaries and associates are valued at cost less impairment, if any. A reversal of an impairment loss on
subsidiaries and associates is recognized as it arises provided the increased carrying value does not exceed cost.
Gains and losses on disposal of investments in subsidiaries and associates are included in the profit and loss account.
5.5
Advances
Advances are stated net of specific and general provisions which are charged to the profit and loss account. Specific
provisions against domestic advances and general provision against domestic consumer loans are determined on the
basis of the Prudential Regulations and other directives issued by the SBP. General and specific provisions pertaining to
overseas advances are made in accordance with the requirements of the regulatory authorities of the respective countries.
If circumstances warrant, the Bank, from time to time, makes general provisions against weaknesses in its portfolio on the
basis of managements estimation.
Advances are written off when there is no realistic prospect of recovery. The amount so written off is a book entry and does
not necessarily prejudice to the Banks right of recovery against the customer.
The Bank determines write-offs in accordance with the criteria prescribed by the SBP vide BPRD Circular No. 06 dated
June 05, 2007.
5.6
Operating fixed assets and depreciation
5.6.1
Owned
Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost or
revalued amount less accumulated depreciation and accumulated impairment losses (if any). Land is carried at revalued
amount less impairment losses while capital work-in-progress is stated at cost less impairment losses. The cost and
the accumulated depreciation of property and equipment of foreign branches include exchange differences arising on
currency translation at the year-end rates of exchange.
Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at
the rates specified in note 11.2 to these unconsolidated financial statements. The depreciation charge for the year is
calculated on a straight line basis after taking into account the residual value, if any. The residual values and useful lives
are reviewed and adjusted, if appropriate, at each statement of financial position date.
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the month
of disposal.
51

Land and buildings are revalued by professionally qualified valuers with sufficient regularity to ensure that their net carrying
value does not differ materially from their fair value. A surplus arising on revaluation is credited to the surplus on revaluation
of fixed assets account. Any deficit arising on subsequent revaluation of fixed assets is adjusted against the balance in
the above-mentioned surplus account as allowed under the provisions of the Companies Ordinance, 1984. The surplus on
revaluation of fixed assets, to the extent of incremental depreciation, is transferred to unappropriated profit.
Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus on
revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profit.
Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. Normal repairs and
maintenance are charged to the profit and loss account as and when incurred.
5.6.2
Leased (Ijarah)
Assets leased out under Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses, if
any. Assets under Ijarah are depreciated over the term of the lease.
Ijarah income is recognized on an accrual basis.
5.6.3
Intangible assets
Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. The cost and
the accumulated amortization of intangible assets of foreign branches include exchange differences arising on currency
translation at the year-end rates of exchange. Amortization is calculated so as to write off the amortizable amount of the
assets over their expected useful lives at the rates specified in note 11.3 to these unconsolidated financial statements.
The amortization charge for the year is calculated on a straight line basis after taking into account the residual value, if
any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each statement of financial position
date. Amortization on additions is charged from the month the asset is available for use. No amortization is charged in the
month of disposal.
Gains and losses on sale of intangible assets are included in the profit and loss account.
5.7
Impairment
Impairment of available for sale equity investments
Available for sale equity investments are impaired when there has been a significant or prolonged decline in their fair value
below their cost. The determination of what is significant or prolonged requires judgment. In making this judgment, the
Bank evaluates, among other factors, the normal volatility in share price.
Impairment of investments in subsidiaries and associates
The Bank considers that a decline in the recoverable value of the investment in a subsidiary or an associate below its cost
may be evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value
in use. An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the
profit and loss account. A subsequent reversal of an impairment loss, upto the cost of the investment in the subsidiary or
the associate, is credited to the profit and loss account.
Impairment in non-financial assets (excluding deferred tax)
The carrying amounts of non-financial assets are reviewed at each reporting date for impairment whenever events or
changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. If such indication
exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down to their
recoverable amount. The resulting impairment loss is charged to the profit and loss account except for an impairment loss
on revalued assets, which is adjusted against the related revaluation surplus to the extent that the impairment loss does
not exceed the revaluation surplus.
5.8
Taxation
5.8.1
Current
Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing laws
and at the prevailing rates for taxation on income earned from local as well as foreign operations.
5.8.2
Prior years
The taxation charge for prior years represents adjustments to the tax charge relating to prior years, arising from assessments
and changes in estimates made during the current year.
52
Annual Report 2013

5.8.3
Deferred
Deferred tax is recognized using the liability method on all major temporary differences between the amounts attributed
to assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is
calculated at the rates that are expected to apply to the period when the differences are expected to reverse, based on tax
rates that have been enacted or substantively enacted at the statement of financial position date.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against
which the assets can be utilized.
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset
to be utilized.
The Bank also recognizes a deferred tax asset / liability on the cash flow hedge reserve and on the deficit / surplus on
revaluation of fixed assets and securities which is adjusted against the cash flow hedge reserve or against the related
deficit / surplus in accordance with the requirements of IAS 12, Income Taxes.
5.9
Provisions
Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events which makes it
probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be
made.
Provision against identified non-funded losses is recognized when intimated and reasonable certainty exists that the Bank
will be required to settle the obligation. The provision is charged to the profit and loss account net of expected recovery
and the obligation is classified under other liabilities.
Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best estimate.
5.10
Staff retirement and other benefits
5.10.1
Staff retirement benefit schemes

The Bank operates the following staff retirement schemes for its employees
a) For new employees and for those who opted for the below mentioned conversion option introduced in 2001, the Bank
operates
- an approved contributory provident fund (defined contribution scheme); and
- an approved gratuity scheme (defined benefit scheme).
b) For employees who have not opted for the conversion option introduced in 2001, the Bank operates
- an approved non-contributory provident fund in lieu of the contributory provident fund; and
- an approved funded pension scheme, introduced in 1986 (defined benefit scheme).
In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under option
(b) above to move to option (a). This conversion option ceased on December 31, 2003.
The Bank also operates a contributory benevolent fund for all its eligible employees (defined benefit scheme).
Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected Unit
Credit Method.
For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no further
payment obligation once the contributions have been paid. The contributions are recognized as an expense when the
obligation to make payments to the fund has been established. Prepaid contributions are recognized as an asset to the
extent that a cash refund or a reduction in future payments is available.
53

5.10.2
Other benefits
a)
Employees compensated absences

The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible employees
on the basis of actuarial advice under the Projected Unit Credit Method.
b)
Post retirement medical benefits (defined benefit scheme)

The Bank provides post retirement medical benefits to eligible retired employees. Provision is made on the basis of
actuarial advice under the Projected Unit Credit Method.
c)
Employee motivation and retention scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of the
scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates.
5.10.3
Actuarial gains and losses

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in
other comprehensive income when they occur with no subsequent recycling through the profit and loss account.
Actuarial gains and losses pertaining to long term compensated absences are recognized in the profit and loss account
immediately.
5.11
Subordinated loans
Subordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on subordinated loans is
recognised separately as part of other liabilities and is charged to the profit and loss account over the period on an accrual
basis.
5.12
5.13
Borrowings / deposits
a)
Borrowings / deposits are recorded at the amount of proceeds received.
b)
The cost of borrowings / deposits is recognized on an accrual basis as an expense in the period in which it is incurred.
Revenue recognition
Revenue is recognized to the extent that the economic benefits associated with a transaction will flow to the Bank and the
revenue can be reliably measured. The following recognition criteria must be met before revenue is recognized.
5.13.1
Advances and investments

Mark-up / return / interest on performing advances and investments is recognized on a time proportionate basis over the term
of the advances and investments. Where debt securities are purchased at a premium or discount, such premium / discount
is amortized through the profit and loss account over the remaining period of maturity of the debt securities.
Interest or mark-up recoverable on non-performing or classified advances and investments is recognized on a receipt basis.
5.13.2
Dividend income
Dividend income is recognised when the right to receive the dividend is established.
5.13.3
Fee, brokerage and commission income

Fee, brokerage and commission income is recognized on an accrual basis.
5.13.4
Grants
Grants received are recorded as income when the right to receive the grant, based on the related expenditure having been
incurred, has been established.
54
Annual Report 2013

5.14
Foreign currencies
5.14.1
Functional and presentation currency

Items included in these unconsolidated financial statements are measured using the currency of the primary economic
environment in which the Bank operates. These unconsolidated financial statements are presented in Pakistani Rupees,
which is the Banks functional and presentation currency.
5.14.2
Foreign currency transactions

Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction
date. Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing
at the statement of financial position date. Forward foreign exchange contracts and foreign bills purchased are valued in
rupees at the forward foreign exchange rates applicable to their respective maturities.
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange prevailing
at the date of initial recognition of the non-monetary assets / liabilities.
5.14.3
Foreign operations
The assets and liabilities of foreign operations are translated to rupees at exchange rates prevailing at the statement of
financial position date. The results of foreign operations are translated at the average rates of exchange for the year.
5.14.4
Translation gains and losses

Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net
investment in foreign branches which are taken to capital reserves (Exchange Translation Reserve) until the disposal of
the net investment, at which time these are recognised in the profit and loss account.
5.14.5
Contingencies and commitments

Commitments for outstanding forward foreign exchange contracts are disclosed in these unconsolidated financial
statements at contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed in
rupee terms at the rates of exchange prevailing at the statement of financial position date.
5.15
Financial instruments
5.15.1
Financial assets and liabilities

Financial assets and liabilities carried on the statement of financial position include cash and bank balances, lendings
to financial institutions, investments, advances, certain receivables, bills payable, borrowings from financial institutions,
deposits, subordinated loans and certain payables. The particular recognition methods adopted for significant financial
assets and financial liabilities are disclosed in the individual policy notes associated with them.
5.15.2
Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is entered
into and are subsequently re-measured at fair value using appropriate valuation techniques. All derivative financial
instruments are carried as assets when their fair value is positive and liabilities when their fair value is negative. Any
change in the fair value of derivative financial instruments during the period is taken to the profit and loss account.
5.15.3
Hedge accounting
The Bank makes use of derivative instruments to manage exposures to interest rate, foreign currency and credit risks. In
order to manage particular risks, the Bank may undertake a hedge. The Bank applies hedge accounting for transactions
which meet the specified criteria.
At the inception of the hedging relationship, the Bank formally documents the relationship between the hedged item and
the hedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge and the
method that will be used to assess the effectiveness of the hedging relationship. A formal assessment is also undertaken
to ascertain whether the hedging instrument is expected to be highly effective in offsetting the designated risk in the
hedged item. A hedge is regarded as highly effective if, during the period for which the hedge is designated, changes
in the fair value or cash flows attributable to the hedged item are expected to be offset by between 80% to 125% by
corresponding changes in the fair value or cash flows attributable to the hedging instrument.
55

Cash flow hedges
For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow hedge is
recognised initially in the statement of changes in equity, and recycled through the profit and loss account in the periods
when the hedged item will affect profit or loss. Any gain or loss on the ineffective portion of the hedging instrument is
recognised in the profit and loss account immediately.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item is
ultimately recognised in the profit and loss account.
5.15.4
Off setting
Financial assets and financial liabilities are set off and the net amount is reported in the unconsolidated financial statements
when there is a legally enforceable right to set off and the Bank intends to either settle on a net basis, or to realize the
assets and to settle the liabilities simultaneously.
5.16
Segment reporting
A segment is a distinguishable component of the Bank that is engaged either in providing particular products or services
(business segment), or in providing products or services within a particular economic environment (geographical segment),
and is subject to risks and rewards that are different from those of other segments.
5.16.1
Business segments
(a)
Corporate finance
Corporate finance includes services provided in connection with mergers and acquisitions, project finance and the
underwriting / arrangement of debt and equity instruments through syndications, Initial Public Offerings and private
placements.
(b)
Trading and sales

Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities, lendings
and borrowings and derivatives for hedging and market making.
(c)
Retail banking
Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless banking.
(d)
Commercial banking
Commercial banking includes project finance, working capital finance, trade finance, import and export, factoring,
leasing, lending, deposits and guarantees.
(e)
Others
Others includes functions which cannot be classified in any of the above segments.
5.16.2
Geographical segments
The Bank operates in four geographical regions being:
-
5.17
Pakistan
Middle East
United States of America
Karachi Export Processing Zone
Dividends and appropriations to reserves

Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations
required by law which are recorded in the period to which they pertain.
5.18
Earnings per share

The Bank presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during
the year.
56
Annual Report 2013

Note
6.
2013
2012
---------- (Rupees in 000) ----------
CASH AND BALANCES WITH TREASURY BANKS

In hand
Local currency
Foreign currency
10,205,233
4,411,775
14,617,008
19,179,233
4,595,050
23,774,283
With State Bank of Pakistan in

Local currency current accounts
Foreign currency current accounts
Foreign currency deposit account
6.1
6.2
6.3
22,944,148
2,022,787
5,938,134
30,905,069
22,998,175
1,646,896
4,732,230
29,377,301
With other central banks in

Foreign currency deposit accounts
6.4
6.5
17,590,646
1,207,384
18,798,030
16,588,955
2,946,037
19,534,992
24,109,512
91,106
21,377,121
97,749
88,520,725
94,161,446
With National Bank of Pakistan in local currency current accounts

National Prize Bonds
6.1
This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking
Companies Ordinance, 1962.
6.2
This represents a US Dollar settlement account maintained with the SBP and current accounts maintained with the SBP to
comply with statutory requirements.
6.3
This represents accounts maintained with the SBP to comply with the Special Cash Reserve requirement. The return on this
account is declared by the SBP on a monthly basis and, as at December 31, 2013, carries mark-up at the rate of 0.00% (2012:
0.00%) per annum.
6.4
Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements pertaining to the
foreign branches of the Bank.
6.5
This represents placements with overseas central banks and carries mark-up at the rate of 0.00% to 0.25% (2012: 0.00% to
0.25%) per annum.
Note
7.
2013
2012
---------- (Rupees in 000) ----------
BALANCES WITH OTHER BANKS

Inside Pakistan
In current accounts
In deposit accounts
7.1
155,606
1,600,007
1,755,613
29,517
900,007
929,524
Outside Pakistan
In current accounts
In deposit accounts
7.2
12,430,237
11,681,647
24,111,884
5,872,030
8,432,772
14,304,802
25,867,497
15,234,326
7.1
These carry mark-up at rates ranging from 7.50% to 9.50% (2012: 8.97% to 9.75%) per annum.
7.2
These carry mark-up at rates ranging from 0.06% to 2.85% (2012: 0.01% to 2.85%) per annum and include balances amounting
to Rs. 226.448 million (2012: Rs. 208.872 million), maintained with an overseas bank against the statutory reserves requirement
of a foreign branch.
57

Note
8.
LENDINGS TO FINANCIAL INSTITUTIONS

Call money lending
Repurchase agreement lendings
Other lendings to financial institutions
8.2
8.3
8.4 & 8.5
Provision against lendings to financial institutions
8.1
2013
2012
---------- (Rupees in 000) ----------
8.6
100,000
13,791,125
15,597,908
29,489,033
(653,918)
28,835,115
6,470,898
16,036,288
22,507,186
(553,728)
21,953,458
15,061,947
14,427,086
29,489,033
8,246,736
14,260,450
22,507,186
Particulars of lendings to financial institutions - gross

In local currency
In foreign currencies
8.2
This represents unsecured lending carrying mark-up at a rate of 9.70% per annum (2012: nil) and is due to mature by May 2014.
8.3
Securities held as collateral against repurchase agreement lendings

2013
Held by Bank
2012
Further given
as collateral
/ sold
Total
Held by Bank
Further given
as collateral
/ sold
Total
---------------------------------------------------- (Rupees in 000) -------------------------------------------------Market Treasury Bills
8,723,925
8,723,925
Pakistan Investment Bonds
5,067,200
5,067,200
13,791,25
13,791,125
6,470,898
6,470,898
6,470,898
6,470,898
Repurchase agreement lendings carry mark-up at rates ranging from 9.40% to 10.00% (2012: 7.50% to 8.50%) per annum and are due to
mature latest by January 2014. The market value of the securities held as collateral against these lendings amounted to Rs 14,004.415 million
(2012: Rs. 6,474.321 million).
8.4
Lendings pertaining to domestic operations carry mark-up at rates ranging from 0.00% to 11.87% per annum (2012: 0.00% to 12.51% per annum)
and are due to mature latest by February 2022. Lendings pertaining to overseas operations carry mark-up at rates ranging from 0.10% to 5.00% per
annum (2012: 0.20% to 4.00% per annum) and are due to mature latest by July 2021.
8.5
This includes an unsecured subordinated loan to United Bank UK, a subsidiary, and is due to mature by October 2018. The loan carries mark-up at
a rate of six months LIBOR + 2% per annum payable semi-annually, with principal to be paid at maturity. The right of the Bank is subordinated as to
the receipt of principal and mark-up to all other indebtedness of United Bank UK (including deposits).
8.6
This represents provision made against lendings to financial institutions with movement as follows:
2013
2012
------- (Rupees in 000) ------Opening balance
553,728
356,637
39,681
28,599
Charge for the year
65,750
179,667
Reversals
(5,241)
(11,175)
60,509
168,492
653,918
553,728
Exchange adjustments
Charge / (reversals)
Closing balance
58
Annual Report 2013

9.
INVESTMENTS
9.1
Investments by type
Note

Market Treasury Bills
Ordinary shares of listed companies
7,401,965
317,933
7,719,898
Available for sale securities

Government of Pakistan Sukuk
Government of Pakistan Eurobonds
Preference shares
Ordinary shares of unlisted companies
Term Finance Certificates
Units of mutual funds
Foreign bonds - sovereign
Foreign bonds - others
176,092,538
65,136,963
6,186,752
10,934,926
14,157,209
436,645
243,100
1,921,367
13,388,237
11,557,116
300,054,853
Held to maturity securities

Sukuks
Participation Term Certificates
Debentures
Foreign bonds
Recovery note
CDC SAARC Fund
Associates
United Growth and Income Fund
UBL Liquidity Plus Fund
UBL Shariah Stock Fund
United Islamic Income Fund
UBL Stock Advantage Fund
UBL Savings Income Fund
UBL Islamic Sovereign Fund
UBL Islamic Retirement Savings Fund
UBL Retirement Savings Fund
UBL Principal Protected Fund - I
UBL Principal Protected Fund - II
UBL Government Securities Fund
UBL Islamic Cash Fund
UBL Gold Fund
UBL Islamic Principal Preservation Fund I
UBL Islamic Principal Preservation Fund II
UBL Asset Allocation Fund
UBL Islamic Asset Allocation Fund
UBL Insurers Limited
Khushhali Bank Limited
Oman United Exchange Company, Muscat
Subsidiaries
United National Bank Limited
UBL (Switzerland) AG
UBL Fund Managers Limited
UBL Bank (Tanzania) Limited
United Executors and Trustees Company Limited
9.7
9.8
Provision for diminution in value of investments
9.3
9.9
Investments (net of provisions)

Surplus / (deficit) on revaluation of available
for sale securities
(Deficit) / surplus on revaluation of held for
trading securities
Total investments
2013
2012
Given as
Total
Held by Bank
Given as
Total
collateral
collateral
------------------------------------------------------------ (Rupees in 000) -------------------------------------------------------------Held by Bank
9.4
12,054,264
12,054,264
7,401,965
317,933
7,719,898
3,797,712
514,070
498,289
4,810,071
188,146,802
65,136,963
6,186,752
10,934,926
14,157,209
436,645
243,100
1,921,367
13,388,237
11,557,116
312,109,117
78,285,856
63,327,795
9,043,880
9,466,364
6,537,756
422,057
242,926
2,021,199
114,075
6,058,958
12,907,656
188,428,522
44,734,778
44,734,778
3,797,712
514,070
498,289
4,810,071
123,020,634
63,327,795
9,043,880
9,466,364
6,537,756
422,057
242,926
2,021,199
114,075
6,058,958
12,907,656
233,163,300
40,607,486
38,333,967
5,281,493
300,000
5,045,801
1,774,197
4,939
2,266
228,454
324,639
229
91,903,471
40,607,486
38,333,967
5,281,493
300,000
5,045,801
1,774,197
4,939
2,266
228,454
324,639
229
91,903,471
54,799,452
31,273,156
300,000
3,971,848
1,541,205
4,939
4,392
210,727
307,517
211
92,413,447
54,799,452
31,273,156
300,000
3,971,848
1,541,205
4,939
4,392
210,727
307,517
211
92,413,447
3,030,136
335,378
200,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
600,000
100,000
240,000
832,485
6,981
6,674,980
3,030,136
335,378
200,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
100,000
100,000
100,000
100,000
600,000
100,000
240,000
832,485
6,981
6,674,980
3,030,136
6,307,994
250,000
200,000
250,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
240,000
832,485
6,981
12,047,596
3,030,136
6,307,994
250,000
200,000
250,000
100,000
350,000
90,000
90,000
100,000
100,000
100,000
240,000
832,485
6,981
12,047,596
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
421,931,428
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
301,223,598
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
409,877,164
(1,476,109)
408,401,055
21.2
3,333,337
(6,390)
411,728,002
12,054,264
12,054,264
(5,016)
12,049,248
(1,476,109)
(1,412,174)
44,734,778
-
1,482,011
589,837
100,000
1,322,014
30,100
3,523,962
345,958,376
(1,412,174)
420,455,319
299,811,424
44,734,778
344,546,202
3,328,321
4,648,328
393,416
5,041,744
(6,390)
423,777,250
2,236
304,461,988
45,128,194
2,236
349,590,182
59

Note
9.2
Investments by segment
Federal Government Securities
Foreign Securities
Sovereign bonds
CDC SAARC Fund
Recovery note
Other bonds
Ordinary shares
Listed companies
Unlisted companies
Preference shares
Units of Mutual Funds
Listed
Unlisted
Sukuks
Debentures
Investments in subsidiaries and associates
Total investments at cost
9.3
Investments (net of provisions)

Surplus on revaluation of available for sale securities
(Deficit) / surplus on revaluation of held for trading securities
Total investments
60
2013
2012
---------- (Rupees in 000) ----------
Annual Report 2013
209,957,884
103,470,930
6,486,752
16,216,419
336,131,985
159,837,863
95,115,021
9,343,880
9,466,364
273,763,128
26,198,369
13,388,237
229
324,639
11,785,570
51,697,044
21,779,935
6,058,958
211
307,517
13,118,383
41,265,004
14,475,142
243,100
14,718,242
7,036,045
242,926
7,278,971
436,645
422,057
114,075
2,389,091
4,578,077
6,967,168
2,777,101
3,215,946
5,993,047
1,774,197
2,266
4,939
1,541,205
4,392
4,939
10,198,942
15,571,558
421,931,428
345,958,376
(1,476,109)
420,455,319
21.2
9.4
3,328,321
(6,390)
423,777,250
(1,412,174)
344,546,202
5,041,744
2,236
349,590,182

9.3
9.3.1
Opening balance
Charge for the year
Reversals
Reversed on disposal
Transfers out - net
Amounts written off
Closing balance
9.3.2

Sukuks
Recovery note
Debentures
63,589
(57,718)
5,871
1,476,109
2,726,226
51,617
496,390
(95,866)
400,524
(1,753,199)
(12,411)
(583)
1,412,174
373,026
122,437
97,616
43,572
343,871
980,522
362,722
135,366
48,808
40,194
312,060
899,150
57,337
106,406
324,639
4,939
2,266
495,587
1,476,109
66,831
129,345
307,517
4,939
4,392
513,024
1,412,174
373,026
122,437
343,871
839,334
362,722
135,366
312,060
810,148
154,953
106,406
324,639
43,572
4,939
2,266
636,775
1,476,109
115,639
129,345
307,517
40,194
4,939
4,392
602,026
1,412,174
Provision for diminution in value of investments by segment

Equity securities
Listed companies
Unlisted companies
Preference shares
Debt securities
Sukuks
Recovery note
Foreign bonds
Debentures
9.4
1,412,174
58,064
Provision for diminution in value of investments by type

Foreign bonds
Preference shares
9.3.3
2013
2012
---------- (Rupees in 000) ----------
Unrealized (loss) / gain on revaluation of held for trading securities

(1,110)
(5,280)
(6,390)
575
(1,105)
2,766
2,236
61

9.5
Investments include securities which are held by the Bank to comply with the statutory liquidity requirements as set out under
Section 29 of the Banking Companies Ordinance, 1962.
9.6
Investments include Rs. 282.000 million (2012: Rs. 282.000 million) held by the SBP and National Bank of Pakistan as pledge
against demand loan, TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank and Rs. 5 million
(2012: Rs. 5 million) held by the Controller of Military Accounts (CMA) under Regimental Fund Arrangements.
9.7
United National Bank Limited operates under the trade name United Bank UK.
9.8
During the year, United Bank AG Zurich, Switzerland, changed its name to UBL (Switzerland) AG.
9.9
UBL Bank (Tanzania) Limited, which was incorporated on March 13, 2012, has commenced operations in May 2013.
9.10
During the year, the Bank has exercised its pledge on shares of DHA Cogen Limited. As a result, the Bank now holds 20.99% of
the issued and paid up shares of DHA Cogen Limited without any consideration having been paid. Consequently, DHA Cogen
Limited is considered as an associated company of the Bank from October 9, 2013.
9.11
Information relating to investments required to be disclosed as part of the financial statements under the SBPs BSD Circular No. 4
dated February 17, 2006, and details in respect of the quality of available for sale securities are disclosed in Annexure A to these
unconsolidated financial statements.
10.
ADVANCES
Note
Performing
Non-performing
Total
2013
2012
2013
2012
2013
2012
----------------------------------------------- (Rupees in 000) ---------------------------------------------------------
Loans, cash credits,

running finances, etc.
In Pakistan
Outside Pakistan
10.2 229,406,045
109,460,137
338,866,182
230,815,522
90,430,230
321,245,752
40,121,889
9,752,108
49,873,997
42,504,171
9,437,856
51,942,027
269,527,934
119,212,245
388,740,179
273,319,693
99,868,086
373,187,779
19,991,220
10,506,476
30,497,696
351,743,448
2,756,062
2,756,062
52,630,059
5,404,969
5,404,969
57,346,996
29,857,262
18,151,641
48,008,903
436,749,082
25,396,189
10,506,476
35,902,665
409,090,444
(44,096,739)
(44,096,739)
(43,463,810)
(20,206)
(43,484,016)
(44,096,739)
(1,838,881)
(45,935,620)
(43,463,810)
(1,262,832)
(44,726,642)
8,533,320
13,862,980
390,813,462
364,363,802
Bills discounted and purchased

Payable in Pakistan
Payable outside Pakistan
Advances - gross
Provision against advances 10.4
- Specific
- General
Advances - net of provision
27,101,200
18,151,641
45,252,841
384,119,023
(1,838,881)
(1,838,881)
382,280,142
(1,242,626)
(1,242,626)
350,500,822
Performing
Non-performing
Total
2013
2012
2013
2012
2013
2012
----------------------------------------------- (Rupees in 000) ---------------------------------------------------------
62
10.1
Particulars of advances - gross
10.1.1
In local currency
248,907,872
135,211,151
384,119,023
249,048,415
102,695,033
351,743,448
42,516,403
10,113,656
52,630,059
47,607,666
9,739,330
57,346,996
291,424,275
145,324,807
436,749,082
296,656,081
112,434,363
409,090,444
10.1.2
Short term
Long term
237,327,089
146,791,934
384,119,023
218,613,468
133,129,980
351,743,448
52,630,059
52,630,059
57,346,996
57,346,996
237,327,089
199,421,993
436,749,082
218,613,468
190,476,976
409,090,444
Annual Report 2013

10.2
Non-performing advances include gross advances of Rs.12,541.082 million (2012: Rs.14,554.414 million) and advances net of provision of Rs.1,697.164 million
(2012: Rs. 3,124.456 million) which, though restructured and performing, have been placed under non-performing status as required by the Prudential Regulations issued by
the SBP, which require monitoring for at least one year before any upgradation is considered.
10.3
Advances include Rs. 52,630 million (2012: Rs. 57,347 million) which have been placed under non-performing status as detailed below:
2013
Category of classification
Classified advances
Domestic
Overseas
Provision required
Total
Domestic
Overseas
Provision held
Total
Domestic
Overseas
Total
------------------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------------------Other Assets Especially

Mentioned *
Substandard
Doubtful
Loss
100,063
100,063
640
640
640
640
1,876,334
1,622,940
3,499,274
310,902
406,299
717,201
310,902
406,299
717,201
1,526,948
1,860,661
3,387,609
206,431
1,345,232
1,551,663
206,431
1,345,232
1,551,663
39,374,606
6,268,507
45,643,113
37,250,604
4,576,631
41,827,235
37,250,604
4,576,631
41,827,235
42,877,951
9,752,108
52,630,059
37,768,577
6,328,162
44,096,739
37,768,577
6,328,162
44,096,739
Total
Domestic
2012
Category of classification
Classified advances
Domestic
Overseas
Provision required
Total
Domestic
Overseas
Provision held
Overseas
Total
------------------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------------------Other Assets Especially

Mentioned *
Substandard
Doubtful
Loss
248,010
248,010
2,138,136
1,346,874
3,485,010
425,466
306,622
732,088
425,466
306,622
732,088
2,540,057
2,095,227
4,635,284
1,148,763
1,093,678
2,242,441
1,148,763
1,093,678
2,242,441
42,982,937
5,995,755
48,978,692
36,264,639
4,224,642
40,489,281
36,264,639
4,224,642
40,489,281
47,909,140
9,437,856
57,346,996
37,838,868
5,624,942
43,463,810
37,838,868
5,624,942
43,463,810
Specific
General
* The Other Assets Especially Mentioned category pertains to agricultural finance and advances to small enterprises.
10.4
Particulars of provision against advances

2013
Note
Specific
2012
General
Total
Total
----------------------------------------------------- (Rupees in 000) ----------------------------------------------------Opening balance
43,463,810
1,262,832
44,726,642
39,950,726
1,008,694
40,959,420
430,425
94,114
524,539
391,565
58,824
450,389
Charge for the year
4,934,316
526,281
5,460,597
5,825,305
290,497
6,115,802
Reversals
(4,393,152)
(12,378)
(4,405,530)
(2,737,726)
(95,183)
(2,832,909)
541,164
513,903
1,055,067
3,087,579
195,314
3,282,893
754,617
(31,968)
Transfers in - net
Amounts written off
Closing balance
10.5
(1,093,277)
44,096,739
1,838,881
722,649
(1,093,277)
45,935,620
366,647
366,647
(332,707)
(332,707)
43,463,810
1,262,832
44,726,642
10.4.1
General provision represents provision amounting to Rs. 252.592 million (2012: Rs. 264.970 million) against consumer finance portfolio and Rs. 32.942 million (2012: Nil)
against advances to small enterprises as required by the Prudential Regulations issued by the SBP and Rs.1,505.347 million (2012: Rs. 949.862 million) pertaining to overseas
advances to meet the requirements of the regulatory authorities of the respective countries in which the overseas branches operate. General provisions also include an amount of
Rs. 48.000 million (2012: Rs. 48.000 million) which the Bank carries as a matter of prudence given the current economic environment, and is based on management estimates.
10.4.2
The Bank has availed the benefit of Forced Sale Value (FSV) of mortgaged properties held as collateral against non-performing advances as allowed under BSD Circular 1 of
2011. Had the benefit under the said circular not been taken by the Bank, the specific provision against non-performing advances would have been higher by Rs.1,354.730 million
(2012: Rs. 3,169.414 million). The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
10.4.3

2013
Specific
General
2012
Total
Specific
General
Total
----------------------------------------------------- (Rupees in 000) ----------------------------------------------------In local currency

37,408,028
333,534
37,741,562
37,594,095
312,970
6,688,711
1,505,347
8,194,058
5,869,715
949,862
37,907,065
6,819,577
44,096,739
1,838,881
45,935,620
43,463,810
1,262,832
44,726,642
63

Note
2013
2012
-------- (Rupees in 000) --------
10.5
Particulars of write-offs
10.5.1
Against provisions
Directly charged to profit and loss account
10.4
1,093,277
181,724
1,275,001
332,707
284,991
617,698
10.5.2
Write-offs of Rs.500,000 and above

Write-offs below Rs.500,000
10.6
1,124,571
150,430
1,275,001
413,592
204,106
617,698
10.6
Details of loan write-offs of Rs.500,000 and above

In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off loans
or any other financial relief of five hundred thousand rupees or above allowed to a person during the year ended December 31, 2013
is given in Annexure B to the unconsolidated financial statements.
Note
10.7
Particulars of loans and advances to executives, Directors, associated companies etc.

Balance at the beginning of the year
2,168,818
1,727,199
Loans granted during the year

Repayments made during the year
980,125
(620,749)
359,376
2,155,149
4,683,343
767,633
(326,014)
441,619
2,168,818
Transfer in
Balance at the end of the year
11.
OPERATING FIXED ASSETS

Capital work-in-progress
Property and equipment
Intangible assets
11.1
64
11.1
11.2
11.3
1,916,346
21,370,720
1,320,871
24,607,937
1,681,230
21,317,645
1,432,194
24,431,069
11.1.1
1,298,110
354,703
236,528
27,005
1,916,346
947,695
529,907
193,824
9,804
1,681,230
Civil works
Equipment
Software
Advances to suppliers and contractors
11.1.1
2013
2012
-------- (Rupees in 000) --------
This includes Rs.1,223.088 million (2012: Rs.820.360 million) in respect of construction of the Head Office building.
Annual Report 2013

11.2

2013
Accumulated Depreciation
Net book
Charge for
Annual rate
value at
Exchange
At
the year / Exchange
At
of deprecAt January Additions /
At January
December
/ Other
December
(deprec/ Other
December
iation %
1, 2013
(deletions)
1, 2013
31, 2013
adjustments 31, 2013
iation on adjustments 31, 2013
deletions)
--------------------------------------------------------------------------- (Rupees in 000) --------------------------------------------------------------------------Cost / Revaluation
Note
Owned
Freehold land
3,041,776
Leasehold land
11,808,012
Buildings on
freehold land
435,089
12,902
-
Buildings on
leasehold land
2,121,536
Leasehold
Improvements
2,244,484
Furniture and
fixtures
Electrical, office
and computer
equipment
Vehicles
3,041,776
3,041,776
121 11,808,133
-
292,914
105
-
293,019
11,515,114
447,991
52,923
22,131
-
75,054
372,937
944
-
2,122,480
327,484
104,966
-
199
-
432,649
1,689,831
309,790
-
39,709
-
2,593,983
977,897
231,610
-
26,729
-
1,236,236
1,357,747
10 - 20
1,096,450
100,031
(3,011)
16,853
-
1,210,323
668,001
87,463
(2,766)
14,278
-
766,976
443,347
10 - 25
6,124,831
1,041,446
(43,971)
87,902
-
7,210,208
4,416,537
856,599
(42,933)
80,876
-
5,311,079
1,899,129
20 - 33.33
393,961
47,044
(33,481)
4,610
-
412,134
195,201
60,971
(31,018)
3,398
-
228,552
183,582
20 - 25
1,399,397
360,857
(394,956)
3,602
-
1,368,900
416,934
334,944
(250,235)
501,643
867,257
20 - 33.33
28,665,536
1,872,070
(475,419)
153,741 30,215,928
-
7,347,891
1,698,684
(326,952)
125,585
-
8,845,208
21,370,720
Assets under operating lease

Ijarah assets
11.8
2013
2012
Net book
Charge for
Annual rate
value at
Exchange
At
the year / Exchange
At
of deprecAt January Additions /
At January
December
/ Other
December
(deprec/ Other
December
iation %
1, 2012
(deletions)
1, 2012
31, 2012
adjustments 31, 2012
iation on adjustments 31, 2012
deletions)
-------------------------------------------------------------------------- (Rupees in 000) -------------------------------------------------------------------------Cost / Revaluation
Note
Owned
3,041,776
3,041,776
3,041,776
Leasehold land
11,782,784
25,121
-
107
-
11,808,012
292,822
92
-
292,914
11,515,098
Buildings on
freehold land
374,216
60,873
-
435,089
32,410
20,513
-
52,923
382,166
Buildings on
leasehold land
2,096,283
24,421
-
832
-
2,121,536
223,542
104,180
-
(238)
-
327,484
1,794,052
Leasehold
Improvements
1,936,497
259,141
-
48,846
-
2,244,484
748,436
205,264
-
24,197
-
977,897
1,266,587
10 - 20
Furniture and
fixtures
1,009,999
97,073
(20,332)
9,710
-
1,096,450
592,971
85,284
(19,043)
8,789
-
668,001
428,449
10 - 25
Electrical, office
and computer
equipment
5,235,442
933,061
(97,679)
54,007
-
6,124,831
3,698,924
767,243
(96,010)
46,380
-
4,416,537
1,708,294
20 - 33.33
376,906
47,548
(34,644)
4,151
-
393,961
164,930
55,062
(27,919)
3,128
-
195,201
198,760
20 - 25
732,087
892,403
(205,926)
(19,167)
-
1,399,397
290,867
268,648
(142,581)
416,934
982,463
20 - 33.33
26,585,990
2,339,641
(358,581)
98,486
-
28,665,536
6,044,902
1,506,194
(285,553)
82,348
-
7,347,891
21,317,645
Freehold land
Vehicles
Assets under operating lease
Ijarah assets
2012
11.8
65

11.3
Intangible assets
2013
Cost
At January 1,
2013
Additions /
(deletions)
Accumulated Amortization
Exchange
/ other
adjustments
At December
31, 2013
At January 1,
2013
Charge for
the year /
(reversal on
deletion)
Exchange
/ other
adjustments
At December
31, 2013
Net book
value at
December
31, 2013
Annual rate
of amortisation %
------------------------------------------------------------------------------------------------ (Rupees in 000) --------------------------------------------------------------------------------------------Software
2,942,210
306,679
(52)
3,248,829
1,510,016
420,243
(8)
(2,293)
1,927,958
1,320,871
10 - 33.33
(8)
2012
Cost
At January 1,
2012
Additions /
(deletions)
Exchange
/ other
adjustments
At December
31, 2012
At January 1,
2012
Charge for
the year /
(reversal on
deletion)
Exchange
/ other
adjustments
Net book
value at
At December
December
31,
31, 2012
2012
Annual rate
of amortisation %
------------------------------------------------------------------------------------------------ (Rupees in 000) -------------------------------------------------------------------------------------------Software
2,593,844
340,514
(5,344)
11.4
13,196
2,942,210
1,097,804
405,878
11,470
1,510,016
1,432,194
10 - 33.33
(5,136)
Revaluation of properties
The properties of the Bank were last revalued by independent professional valuers as at December 31, 2009. The revaluation was carried out by M/s. Pirsons Chemicals
Engineering (Private) Limited, M/s. Sadruddin Associates, M/s. Maricon Consultants (Private) Limited and M/s. Engineering Pakistan International (Private) Limited on the basis
of professional assessment of present market values and resulted in an increase in surplus by Rs. 4,139.592 million. Had there been no revaluation, the carrying amount of
the revalued assets at December 31, 2013 would have been as follows:
2013
2012
------ (Rupees in 000) ------Freehold land
782,581
Leasehold land
196,217
196,201
Buildings on freehold land
208,414
207,361
Buildings on leasehold land
204,724
216,912
73,331
73,331
11.5
Carrying amount of temporarily idle property of the Bank
11.6
The cost of fully depreciated assets still in use

Furniture and fixtures
Electrical, office and computer equipment
Vehicles
11.7
782,581
233,351
295,781
2,938,165
2,504,479
72,448
72,408
3,243,964
2,872,668
Details of disposal of operating fixed assets

The information relating to operating fixed assets disposed off during the year is given in Annexure C and is an integral part of these unconsolidated financial statements.
11.8
The Islamic Banking branches of the Bank enter into Ijarah transactions with customers, mainly in respect of property, plant and equipment and vehicles.
The Ijarah payments receivable from customers for each of the following periods under the terms of the respective arrangements are given below:
2013
2012
------ (Rupees in 000) ------Not later than one year
440,815
459,667
Later than one year but not later than five years
617,905
694,712
Later than five years
66
Annual Report 2013
1,058,720
1,154,379

Note
12.
OTHER ASSETS
Income / mark-up accrued in local currency
Income / mark-up accrued in foreign currency
Advance taxation - net of provision for taxation
12.1
Receivable from staff retirement fund
Receivable on account of encashment of savings certificates
Receivable in respect of derivative transactions
Receivable from other banks against telegraphic transfers and demand drafts
Unrealized gain on forward foreign exchange contracts
Rebate receivable - net
Unrealized gain on derivative financial instruments
19.3.1 & 23.2
Advance against Murabaha
Advance against Ijarah assets
Suspense accounts
Stationery and stamps on hand
Receivable against redemption of units of mutual funds
Non banking assets acquired in satisfaction of claims
12.3
Advances, deposits, advance rent and other prepayments
Advance against Pre-IPO investment
Others
Provision held against other assets
Other assets (net of provisions)
12.1
2013
2012
---------- (Rupees in 000) ----------
12.2
11,305,250
3,414,127
14,719,377
6,331,390
58,964
6,862
18,033
2,300,968
1,940,981
1,070,602
344,712
17,498
27,110
280,614
177,636
1,236,996
902,585
1,911,469
31,345,797
(4,029,132)
27,316,665
11,554,488
2,611,335
14,165,823
5,917,699
1,600,550
14,586
18,033
881,653
779,924
792,293
489,130
17,531
110,382
392,516
211,031
1,004,226
1,094,305
943,315
364,000
1,649,245
30,446,242
(3,645,930)
26,800,312
The Income Tax returns of the Bank have been filed up to the tax year 2013 (accounting year ended 2012) and were deemed to
be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance) unless amended by the Commissioner of Inland
Revenue.
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2013, and created additional tax
demands of Rs. 9,589 million, which have been fully paid as required under the law. The Bank has filed appeals before the various
appellate forums against these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing
authorities have filed appeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank
has filed appeals before higher appellate forums. The management of the Bank is confident that the appeals will be decided in
favor of the Bank.
Under the Seventh Schedule to the Ordinance, banks are allowed to claim provisions against advances up to 5% of total advances
for consumer and small and medium enterprises and up to 1% of total advances for remaining advances. Amounts above these
limits are allowed to be claimed in future years. The Bank has booked a deferred tax asset of Rs. 2,365 million (2012: Rs. 3,229
million) in respect of provisions in excess of the above mentioned limits.
The Bank also carries a tax asset amounting to Rs. 4,114 million (2012: Rs. 4,114 million), representing disallowance of provisions
against advances and off balance sheet obligations, for the periods prior to the applicability of the Seventh Schedule. The
management, in consultation with its tax advisor, is confident that these would be allowed to the Bank at appellate levels.
The tax returns for Azad Kashmir (AK) Branches have been filed upto the tax year 2013 (financial year 2012) under the provisions
of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and
the Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessment orders under the law.
The tax returns for overseas branches have been filed upto the year ended December 31, 2012 under the provisions of the laws
prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.
67

Note
12.2

Opening balance
Charge for the year
Reversals
2013
2012
--------- (Rupees in 000) --------3,645,930
157,437
29
Transfers in - net
Amounts written off
Closing balance
2,847,765
99,960
49,947
(23,737)
26,210
213,940
(23,321)
190,619
975,001
(775,446)
4,029,132
739,139
(231,553)
3,645,930
12.3
The market value of non banking assets acquired in satisfaction of claims is Rs. 1,238.049 million (2012: Rs.1,072.318 million).
13.
CONTINGENT ASSETS
There were no contingent assets as at the statement of financial position date.
Note
14.
BILLS PAYABLE
In Pakistan
Outside Pakistan
15.
7,345,784
254,849
7,600,633
33,589,496
6,984,378
40,573,874
62,705,626
6,014,640
68,720,266
29,903,135
10,670,739
40,573,874
61,914,550
6,805,716
68,720,266
10,835,330
40,795
5,950,207
423,958
17,250,290
12,042,846
29,293,136
12,460,384
32,050
3,535,341
822,015
16,849,790
45,064,760
61,914,550
5,033,830
456,008
5,790,900
11,280,738
40,573,874
4,508,819
2,296,897
6,805,716
68,720,266
Particulars of borrowings
In local currency
15.2
16,167,273
423,611
16,590,884
BORROWINGS
In Pakistan
Outside Pakistan
15.1
2013
2012
--------- (Rupees in 000) ---------
Details of borrowings
Secured
Borrowings from the State Bank of Pakistan under:
Export refinance scheme
Refinance facility for modernization of SME
Long term financing facility
Long term financing under export oriented projects
15.3
15.4
15.5
15.6
Repurchase agreement borrowings
15.7
Unsecured
Call borrowings
Overdrawn nostro accounts
Other borrowings
68
15.8
15.9
15.3
The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the terms of the
agreement, the Bank has granted the SBP the right to recover the outstanding amounts from the Bank at the date of maturity of
the finances by directly debiting the Banks current account maintained with the SBP. These borrowings are repayable within six
months, latest by June 2014. These carry mark-up at a rate of 8.40% per annum (2012: 8.50% per annum).
15.4
These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and Medium Enterprises
by providing financing facilities for setting up of new units, purchase of new plant and machinery for Balancing, Modernization
and Replacement (BMR) of existing units and financing for import / local purchase of new generators upto a maximum capacity
of 500 KVA. These borrowings are repayable within a period ranging from 3 years to 10 years, latest by December 2018 and
carry mark-up at a rate of 6.25% per annum (2012: 8.00% per annum).
Annual Report 2013

15.5
These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new technologies
and modernization of their plant and machinery. These borrowings are repayable within a period ranging from 3 years to 10 years,
latest by December 2023. These carry mark-up at rates ranging from 6.50% to 10.10% per annum (2012: 6.50% to 10.10% per
annum).
15.6
These borrowings have been obtained from the SBP for providing financing facilities for import of machinery, plant, equipment
and accessories thereof by export oriented units. These carry mark-up at a rate of 5.00% per annum (2012: 5.00% per annum)
and are repayable latest by July 2016.
15.7
These repurchase agreement borrowings are secured against Market Treasury Bills and carry mark-up at rates ranging from
9.95% to 10.00% per annum (2012: 8.77% to 8.83% per annum). These borrowings are repayable latest by January 2014. The
carrying value of securities given as collateral against these borrowings is given in note 9.1.
15.8
These represents unsecured borrowings relating to domestic and overseas operations. Borrowings pertaining to domestic
operations carry mark-up at rates ranging from 9.65% to 10.00% per annum (2012: Nil) and are repayable latest by May 2014.
Borrowings pertaining to overseas operations carry mark-up at rates ranging from 0.19% to 4.00% per annum (2012: 0.53% to
4.00% per annum) and are repayable latest by June 2014.
15.9
These borrowings carry mark-up at rates ranging from 2.28% to 4.58% per annum (2012: 1.00% to 4.61% per annum), and are
repayable latest by May 2016.
2013
2012
DEPOSITS AND OTHER ACCOUNTS
-------------- (Rupees in 000) -------------
16.
Customers
Fixed deposits
Savings deposits
Sundry deposits
Margin deposits
Current accounts - remunerative
Current accounts - non-remunerative
Financial Institutions
Remunerative deposits
Non-remunerative deposits
16.1
Term Finance
Certificates - II
17.2
11,692,591
4,396,355
16,088,946
827,847,738
6,685,275
4,884,483
11,569,758
698,429,697
578,773,906
249,073,832
827,847,738
505,593,414
192,836,283
698,429,697
SUBORDINATED LOANS - UNSECURED

Note
17.1
193,621,057
240,777,697
7,662,302
3,846,759
7,228,020
233,724,104
686,859,939
Particulars of deposits and other accounts

In local currency
17.
231,663,187
278,705,006
7,083,484
5,448,770
10,493,768
278,364,577
811,758,792
Issue date
Tenor
Rate % per annum
Maturity
Frequency
of principal
redemption
2013
2012
--------- (Rupees in 000) ---------
March
2005
8 years
9.49%
March
2013
Semi Annual
1,999,400
Term Finance
Certificates - III
17.1
September
2006
8 years
6 months
KIBOR+1.70%
September
2014
Semi Annual
665,328
1,330,664
Term Finance
Certificates - IV
17.2
February
2008
10 years
For the first five

years, 6 months
KIBOR+0.85% and
for the remaining
term, 6 months
KIBOR+1.35%
February
2018
Semi Annual
5,989,200
665,328
9,319,264
These represent listed Term Finance Certificates (TFCs) issued by the Bank. The liability of the Bank is subordinated as to the
payment of principal and profit to all other indebtedness of the Bank (including deposits) and is not redeemable before maturity
without approval of the SBP.
During the year, the Bank has exercised the call option available under the terms of issuance of the Term Finance Certificates IV
after completing required regulatory requirements. Accordingly the outstanding balance of the said TFC has been redeemed on
August 13, 2013, being the option exercise date.
69

Note
18.
DEFERRED TAX LIABILITY - NET

18.1
2013
2012
---------- (Rupees in 000) ---------
18.1
1,087,240
856,528
Movement in temporary differences during the year

2013
At January 1,
2013
Recognised
in profit and
loss account
Others
At December
31, 2013
-------------------------------- (Rupees in 000) -------------------------------Deductible temporary differences on

- Workers Welfare Fund
- Cash flow hedge reserve
- Provision against off balance sheet items,
post retirement employee benefits and
advances
Taxable temporary differences on
- Surplus on revaluation of fixed assets
- Surplus on revaluation of investments
- Ijarah financing
- Accelerated tax depreciation
185,888
11,306
(10,976)
-
(9,568)
174,912
1,738
6,345,895
(886,769)
75,767
5,534,893
6,543,089
(897,745)
66,199
5,711,543
(5,070,497)
36,130
(1,764,610)
(14,371)
(550,139)
(7,399,617)
(856,528)
(34,675)
1,455
(896,290)
(319)
599,698
(5,034,686)
(1,164,912)
(14,371)
(584,814)
599,379
(6,798,783)
665,578
(1,087,240)
2012
Recognised
Others
At December
in profit and
31, 2012
loss account
--------------------------------- (Rupees in 000) -------------------------------At January 1,
2012
Deductible temporary differences on

- Provision against off balance sheet items,
post retirement employee benefits and
advances - (restated)

- Ijarah financing
70
Annual Report 2013
179,593
33,383
6,295
-
(22,077)
5,697,797
5,910,773
539,421
545,716
(5,106,310)
967,118
(14,371)
(452,698)
(4,606,261)
36,046
(97,441)
(61,395)
(233)
(2,731,728)
(2,731,961)
(5,070,497)
(1,764,610)
(14,371)
(550,139)
(7,399,617)
1,304,512
484,321
(2,645,361)
(856,528)
108,677
86,600
185,888
11,306
6,345,895
6,543,089

Note
19.
OTHER LIABILITIES
Mark-up / return / interest payable in local currency
Mark-up / return / interest payable in foreign currency
Accrued expenses
Branch adjustment account
Payable against purchase of securities
Payable under severance scheme
Deferred income
Unearned commission
Provision against off - balance sheet obligations
Unrealized loss on forward foreign exchange contracts
Deferred liabilities
Unrealized loss on derivative financial instruments
Workers Welfare Fund payable
Insurance payable against consumer assets
Others
19.1
19.1
19.2
19.3.1 & 23.2
10,377,575
903,738
2,921,156
629,933
119,827
32,563
625,532
153,886
619,397
1,869,735
2,869,828
150,602
499,746
103,700
182,372
22,059,590
9,454,214
795,577
2,827,121
895,927
51,031
32,563
578,539
145,833
621,134
329,007
2,588,669
269,034
531,106
82,134
168,028
19,369,917

Opening balance
Charge during the year
Transfers during the year
19.2
2013
2012
------ (Rupees in 000) -------
29
621,134
342
(2,079)
619,397
621,278
356
249
(749)
621,134
Provision for gratuity
Provision for post retirement medical benefits
Provision for compensated absences
Deferred liability for outsourced services
Deferred liability - overseas
36.4
36.4
152,441
930,955
1,275,654
110,690
400,088
2,869,828
113,079
943,927
1,067,421
101,373
362,869
2,588,669
71

19.3

Note
- Interest rate swaps

- Cross currency swaps
- FX options
- Forward sale contracts of government securities
19.3.1
Contract / notional amount

Unrealised gain - net
2013
2012
2013
2012
----------------------------- (Rupees in 000) ----------------------------5,723,576
10,550,240
16,273,816
8,059,417
12,490,616
74,468
308,867
20,933,368
Note
19.3.1
Unrealized gain / (loss) on derivative financial instruments - net

Unrealized gain - net
20.
SHARE CAPITAL
20.1
Authorized Capital
12
19
23.2
2013
2012
-----------(Number of shares)----------2,000,000,000
20.2
2,000,000,000
88,555
105,555
194,110
135,799
83,494
803
220,096
2013
2012
------- (Rupees in 000) ------344,712
(150,602)
194,110
489,130
(269,034)
220,096
2013
2012
------- (Rupees in 000) ------Ordinary shares of Rs.10 each
20,000,000
20,000,000
5,180,000
7,061,798
12,241,798
5,180,000
7,061,798
12,241,798
Issued, subscribed and paid-up capital

2013
2012
-----------(Number of shares)----------Fully paid-up ordinary shares of Rs.10 each
518,000,000
706,179,687
1,224,179,687
20.3
518,000,000
706,179,687
1,224,179,687
Issued for cash

Issued as bonus shares
In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional
Securities Market for trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the Bank.
The GDRs constitute an offering in the United States only to qualified institutional buyers in reliance on Rule 144A under the U.S
Securities Act of 1933 and an offering outside the United States in reliance on Regulation S.
Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank pari
passu with other equity shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights or other
direct rights of shareholders with respect to the ordinary shares underlying such GDRs. Subject to the terms and restrictions
set out in the offering circular dated June 25, 2007, the deposited ordinary shares in respect of which the GDRs were issued
may be withdrawn by the GDR holders from the depository facility. Upon withdrawal, the holders will rank pari passu with other
ordinary shareholders in respect of voting powers. As at December 31, 2013, 32,060,348 (2012: 15,286,868) GDRs, representing
128,241,394 (2012: 61,147,474) shares were in issue.
20.4
Major shareholders (holding more than 5% of total paid-up capital)
2013
Percentage of
shareholding
Name of shareholder
Number of
shares held

Sir Muhammed Anwar Pervez, OBE, HPk
His Highness Shaikh Nahayan Mabarak Al Nahayan
467,611,120
238,567,381
93,649,744
62,433,163
-
38.20%
19.49%
7.65%
5.10%
-
Number of
shares held
2012
Percentage of
shareholding
467,611,120
238,567,381
93,649,744
62,433,163
67,329,867
38.20%
19.49%
7.65%
5.10%
5.50%
As at December 31, 2013, ADG held Nil % (2012: 10.30%) shareholding (including GDRs) and the Bestway Group (Bestway) held
61.38% (2012: 51.07%) shareholding (including GDRs) of the Bank.
72
Annual Report 2013

Note
21.
SURPLUS ON REVALUATION OF ASSETS - NET OF DEFERRED TAX
2013
2012
------------ (Rupees in 000) ----------
Surplus arising on revaluation of assets - net of tax

Fixed assets
Securities
21.1
21.1
21.2
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax
Related deferred tax liability on incremental depreciation charged
during the year
Less: Related deferred tax liability on

Revaluation as at January 1
Incremental depreciation charged on related assets
18.1
18.1
15,330,037
15,432,360
912
665
(67,098)
(66,942)
(36,130)
(102,316)
15,227,721
(36,046)
(102,323)
15,330,037
5,070,497
319
(36,130)
5,034,686
10,193,035
5,106,310
233
(36,046)
5,070,497
10,259,540
(147,850)
(402,073)
2,767,273
75,680
1,035,291
3,328,321
(1,164,912)
2,163,409
626,591
2,692,613
368,507
(1,879)
109,937
1,245,975
5,041,744
(1,764,610)
3,277,134
3,796,673
2,540,111
3,872,302
10,209,086
2,631,890
4,353,102
3,002,658
9,987,650
81,454,308
5,364,806
32,724,186
119,543,300
72,141,081
4,559,713
23,303,053
100,003,847
Surplus / (deficit) on revaluation of available for sale securities

Listed shares
Mutual fund units
Term Finance Certificates, Sukuks, other bonds etc.
Foreign bonds
Related deferred tax liability
22.
22.1
Direct credit substitutes

Contingent liabilities in respect of guarantees given favouring
Government
Banking companies and other financial institutions
Others
22.2
10,259,540
3,277,134
13,536,674
Surplus on revaluation of fixed assets

Surplus on revaluation of fixed assets as at January 1
21.2
10,193,035
2,163,409
12,356,444
18.1
Transaction-related contingent liabilities

Contingent liabilities in respect of performance bonds,
bid bonds, warranties, etc. given favouring
Government
Others
73

2013
2012
----------- (Rupees in 000) ----------22.3
Trade-related contingent liabilities

Contingent liabilities in respect of letters of credit opened favouring
Government
Others
22.4
39,611,137
106,843,257
146,454,394
12,464,289
23,818,821
Other contingencies
Claims against the Bank not acknowledged as debts
22.5
38,251,175
129,710,865
167,962,040
Commitments to extend credit

The Bank makes commitments to extend credit in the normal course of its business but these being revocable commitments do
not attract any significant penalty or expense if the facility is unilaterally withdrawn.
2013
2012
----------- (Rupees in 000) -----------
22.6
22.7
Commitments in respect of forward foreign exchange contracts

Purchase
207,539,873
119,658,061
Sale
172,499,461
90,502,058
5,723,576
10,550,240
-
8,059,417
12,490,616
37,234
37,234
308,867
1,699,696
2,150,282
Commitments in respect of derivatives

Interest rate swaps
Cross currency swaps
FX options - purchased
FX options - sold
Forward sale of government securities
22.8
Commitments in respect of capital expenditure
22.9
For contingencies relating to taxation refer note 12.1
23.
DERIVATIVE INSTRUMENTS
Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying assets or
indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives also include structured
financial products that have one or more of the characteristics of forwards, futures, swaps and options.
The Bank, as an Authorized Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and offers a wide
variety of derivatives products covering both hedging and market making to satisfy customers needs. Where required, specific
approval is sought from the SBP for each transaction.
The authority for approving policies lies with the Board of Directors (BoD) and the Board Risk Management Committee (BRMC).
The Market Risk Committee (MRC) is responsible for ensuring compliance with these policies.
With regard to derivatives, the MRC is authorized to:
-
74
Review the derivatives business with reference to market risk exposure and assign various limits in accordance with the risk
appetite of the Bank
Annual Report 2013

-
Review the Derivatives Business Policy and recommend approval to the BRMC / BoD
Review and approve derivatives product programs
Authorize changes in procedures and processes regarding derivatives and structured products
Overall responsibility for derivatives trading activity lies with the Treasury and Capital Markets Group. Measurement and
monitoring of market and credit risk exposure and limits and its reporting to senior management and the BoD is done by
Treasury Middle Office (TMO), which also coordinates with the business regarding approvals for derivatives risk limits.
Treasury Operations records derivatives activity in the Banks books, and handles its reporting to the SBP.
Derivatives risk management
There are a number of risks undertaken by the Bank, which need to be monitored and assessed.
Credit risk
Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an adverse
impact on the Banks profitability. Credit risk associated with derivatives transactions is categorized into settlement risk
and pre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit Committee. The credit
exposure of each counterparty is estimated and monitored against approved counterparty limits by TMO on a daily basis.
Market risk
The Bank, as a policy, hedges back-to-back all Options transactions. In addition, the Bank does not carry any exchange risk
on its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage the interest rate risk
of Interest Rate Derivatives, the Bank has implemented various limits which are monitored and reported by TMO on a daily
basis.
Liquidity risk
Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional demand, and
no perfect hedge is available. The Bank mitigates its risk by limiting the portfolio in terms of tenor, notional and sensitivity
limits, and can also hedge its risk by taking on and off balance sheet positions in the interbank market, where available.
Operational risk
The staff involved in the trading, settlement and risk management of derivatives are carefully trained to deal with the
complexities involved in the process. Adequate systems and controls are in place to carry out derivatives transactions
smoothly. Each transaction is processed in accordance with the product program or a transaction memo, which contains
detailed guidance on the accounting and operational aspects of the transaction to further mitigate operational risk. In
addition, TMO and the Compliance and Control Department are assigned the responsibility of monitoring any deviation
from policies and procedures. The Banks Audit and Inspection Group also reviews this function, with a regular review of
systems, transactional processes, accounting practices and end-user roles and responsibilities.
The Bank uses a derivatives system which provides an end-to-end valuation solution, supports the routine transactional
process and provides analytical tools to measure various risk exposures, carry out stress tests and sensitivity analysis.
TMO produces various reports on a periodic basis which are reviewed by senior management. These reports provide
details of the derivatives business profile such as outstanding positions, profitability, risk exposures and the status of
compliance with limits.
75
76
Annual Report 2013
23.1
Total
Hedging
Market making
With other entities

Market making
With banks for

Hedging
Market making
Total
Hedging
Market making
With other entities

Market making
With banks for

Hedging
Market making
Product analysis
2,331,163
3,392,413
5,723,576
3,146,655
2,331,163
245,757
2,576,920
(Rupees in 000)
Notional
principal
4
6
10
4
2
6
Number of
contracts
3,444,084
4,615,333
8,059,417
3,323,884
3,444,084
1,291,449
4,735,533
(Rupees in 000)
Notional
principal
Interest rate swaps
3
5
8
3
1
4
Number of
contracts
Interest rate swaps
10,550,240
10,550,240
102,840
10,447,400
10,447,400
10
10
4
4
Number of
contracts
12,490,616
12,490,616
578,516
11,912,100
11,912,100
(Rupees in 000)
Notional
principal
4
4
3
3
(Rupees in 000)
Notional
principal

Number of
contracts
4
4
8
4
4
37,234
37,234
74,468
37,234
37,234
37,234
(Rupees in 000)
Notional
principal
FX options
Number of
contracts
2012
(Rupees in 000)
Notional
principal
FX options
Number of
contracts
2013
1
1
308,867
308,867
308,867
(Rupees in 000)
Forward sale contracts of

government securities
Number of
Notional
contracts
principal
(Rupees in 000)

Number of
Notional
contracts
principal
3,481,318
17,452,050
20,933,368
4,248,501
3,481,318
13,203,549
16,684,867
(Rupees in 000)
Notional
principal
Total
2,331,163
13,942,653
16,273,816
3,249,495
2,331,163
10,693,157
13,024,320
(Rupees in 000)
Notional
principal
Total

23.2
Maturity analysis of derivatives

Remaining maturity
No. of contracts
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 Years
3 to 5 years
5 to 10 years
Above 10 years
Remaining maturity
2
2
6
2
12
No. of contracts
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
1
1
12
3
2
2
2
6
29
2013
Notional
Unrealized
principal
(Loss)
Gain
Net
--------------------------------- (Rupees in 000) --------------------------------4,333,400
143,304
143,304
6,216,840
(37,749)
(37,749)
3,250,765
(64,419)
145,743
81,324
2,472,811
(48,434)
55,665
7,231
16,273,816
(150,602)
344,712
194,110
2012
Notional
Unrealized
principal
(Loss)
Gain
Net
--------------------------------- (Rupees in 000) --------------------------------308,867
22,000
459,584
4,365,750
3,861,950
5,855,800
582,898
5,476,519
20,933,368
(343)
(72,511)
(4,675)
(1,388)
(14,754)
(175,363)
(269,034)
803
11,762
45,841
41
93,967
15,265
321,451
489,130
803
11,762
(343)
(26,670)
(4,634)
92,579
511
146,088
220,096
2013
2012
---------- (Rupees in 000) --------24.
MARK-UP / RETURN / INTEREST EARNED

On loans and advances to customers
On lendings to financial institutions
Call money lending
Securities purchased under resale agreements
On investments in
On deposits with financial institutions
25.
33,411,614
37,996,341
8,087
416,220
474,329
898,636
11,599
330,322
465,686
807,607
536,164
25,657,917
12,246,485
38,440,566
804,860
22,316,810
11,438,496
34,560,166
95,465
72,846,281
143,301
73,507,415
28,352,987
3,357,395
2,208,147
991,827
34,910,356
27,658,457
3,836,423
1,894,663
1,558,155
34,947,698
MARK-UP / RETURN / INTEREST EXPENSED

On deposits
On securities sold under repurchase agreements
On other short term borrowings
On long term borrowings
77

Note
26.
GAIN ON SALE OF SECURITIES - NET

Federal government securities
151,918
561,549
713,467
Ordinary shares of
Listed companies
Unlisted companies
Other securities
27.
78
976,700
976,700
1,086,868
2,777,035
435,093
17,078
452,171
(205,381)
464,386
528,259
123,109
135,299
211,123
24,893
41,371
1,064,054
578,799
284,294
124,002
2,965,657
24,879
(2,397)
3,975,234
ADMINISTRATIVE EXPENSES
Salaries, allowances etc.
Charge for compensated absences
Medical expenses
Contribution to defined contribution plan
Charge in respect of defined benefit obligations
Rent, taxes, insurance, electricity etc.
Depreciation
Amortization
Outsourced service charges including sales commission
Communications
Banking service charges
Cash transportation charges
Stationery and printing
Legal and professional charges
Advertisement and publicity
Repairs and maintenance
Travelling
Office running expense
Vehicle expense
Entertainment
Cartage, freight and conveyance
Insurance expense
Auditors remuneration
Training and seminars
Brokerage expenses
Subscriptions
Donations
Non-executive Directors fees
Zakat paid by overseas branch
Miscellaneous expenses
28.1
176,751
40,845
217,596
OTHER INCOME
Charges recovered
Grant income
Rent on properties
Income from dealing in derivatives
Gain / (loss) on trading liabilities - net
28.
2013
2012
----------- (Rupees in 000) -----------
28.1
11.2
11.3
28.2
28.3
9,158,448
547,017
479,832
175,794
148,738
3,581,455
1,698,684
420,243
3,040,443
1,049,490
855,650
441,437
546,431
292,366
645,169
1,130,986
212,835
495,455
189,389
172,808
85,699
142,846
51,902
80,447
44,557
69,726
76,990
33,915
98,257
78,432
26,045,441
8,773,262
548,507
442,961
163,849
94,567
3,068,514
1,506,194
405,878
2,203,159
982,341
829,830
398,467
504,430
344,957
626,391
1,047,993
266,819
451,327
181,534
154,791
87,952
125,545
53,655
103,483
27,949
52,898
34,937
34,133
84,803
143,456
23,744,582
This includes employee benefits in the form of awards / bonus to all permanent staff including the Chief Executive Officer
and is determined on the basis of employees evaluation and the Banks performance during the year. The aggregate benefit
determined in respect of all permanent staff amounted to Rs. 929.238 million (2012: Rs. 954.428 million).
Annual Report 2013

28.2
2013
KPMG
BDO
Overseas
Total
Taseer Hadi
Ebrahim
Auditors
& Co.
& Co.
------------------------------------------- (Rupees in 000) ------------------------------------------
Audit fee
Fee for audit of EPZ branch
Fee for other certifications
Out of pocket expenses
6,455
250
408
7,113
6,455
2,783
1,518
10,756
34,011
22
34,033
46,921
250
2,783
1,948
51,902
2012
Ernst & Young
BDO
Overseas
Total
Ford Rhodes
Ebrahim
Auditors
Sidat Hyder
& Co.
------------------------------------------- (Rupees in 000) -----------------------------------------Audit fee
Fee for audit of EPZ branch
28.3
6,455
250
2,105
3,143
11,953
6,455
2,075
2,633
11,163
Details of donations
Donations individually exceeding Rs. 0.1 million
28.3.1
30,522
17
30,539
43,432
250
4,180
5,793
53,655
2013
2012
------- (Rupees in 000) -------
Lahore University of Management Sciences

The Citizens Foundation
Forman Christian College
Gulab Devi Chest Hospital
Shalamar Hospital
The Sir Syed Memorial Society
Friends of Burns Centre
Hisaar Foundation
Sukkur Institute of Business Administration
Developments in Literacy
Al-Mehrab Tibbi Imdad
Government College University, Lahore
Marie Adelaide Leprosy Centre
Abdul Sattar Edhi Foundation
Bazm-e-Kiran
Buksh Foundation
Burhani Medical Welfare Association
SOS Childrens Villages of Pakistan
Shaukat Khanum Memorial Trust
The Kidney Center Post Graduate Training Institute
Karwan-e-Hayat
Rotary Club of Karachi Continental, Pakistan
Institute of Business Administration
Sindh Welfare Association of the Deaf
Children Welfare Society
Kaghan Memorial Trust
Mukhtar Mai Womens Organization
Naseer Construction Co. (Renovation of courts)
Subh-e-Nau
Sargodhian Spirit Trust
Sindh Institute of Urology and Transplantation
Pakistan Foundation Fighting Blindness
Drug Free Pakistan Foundation
The Oxford and Cambridge Society Karachi
20,000
12,545
10,000
10,000
5,000
5,000
2,600
2,290
1,560
1,000
1,000
1,000
850
700
600
540
540
450
200
200
150
120
100
25
-
500
1,000
1,296
3,060
1,000
850
450
2,700
150
20,000
324
200
500
500
277
500
200
200
500
200
165
Donations individually not exceeding Rs. 0.1 million
520
76,990
365
34,937
Donations were not made to any donee in which a Director or his spouse had any interest.
79

Note
29.
OTHER PROVISIONS - NET

Provision against other assets - net
Other provisions
(Reversal) / provision against Ijarah Assets - Specific
Provision against Ijarah Assets - General
30.
2013
2012
----------- (Rupees in 000) -----------
12.2
19.1
26,210
122,465
(4,184)
582
145,073
190,619
249
158,434
12,485
141
361,928
WORKERS WELFARE FUND

Under the Workers Welfare Ordinance, 1971, the Bank is liable to pay Workers Welfare Fund @ 2% of profit before tax as per
the financial statements or declared income as per the income tax return, whichever is higher.
2013
2012
----------- (Rupees in 000) -----------
31.
OTHER CHARGES
Penalties imposed by the SBP
Other penalties
247,411
1,966
249,377
63,986
998
64,984
2013
Overseas
Azad Kashmir
Domestic
Total
------------------------------------- (Rupees in 000) ------------------------------------32.
TAXATION
Current
Prior years
Deferred
1,714,885
54,398
(26,046)
1,743,237
91,301
672
91,973
6,436,083
921,664
7,357,747
8,242,269
54,398
896,290
9,192,957
2012
Overseas
Azad Kashmir
Domestic
Total
------------------------------------- (Rupees in 000) ------------------------------------Current
Prior years
Deferred
1,261,582
497,000
(448,015)
1,310,567
158,000
1,442
159,442
7,527,816
(37,748)
7,490,068
8,947,398
497,000
(484,321)
8,960,077
2013
2012
----------- (Rupees in 000) ----------32.1
Relationship between tax expense and accounting profit

Accounting profit for the year
Tax on income @ 35% (2012: 35%)
Tax effect of items that are either not included in determining taxable
profit or taxed at reduced rates (permanent differences)
Tax - prior years
Others
Tax charge
80
Annual Report 2013
27,806,912
26,851,435
9,732,419
9,398,002
(622,324)
54,398
28,464
9,192,957
(482,832)
497,000
(452,093)
8,960,077

33.
2013
2012
---------------- (Rupees in 000) --------------18,613,955
17,891,358
EARNINGS PER SHARE

Profit after taxation for the year
------------ (Number of shares) --------------Weighted average number of ordinary shares
1,224,179,687
1,224,179,687
------------------- (Rupees) --------------------15.21

14.61

33.1
Diluted earnings per share has not been presented separately as the Bank does not have any convertible instruments in
issue at December 31, 2013 or 2012.
34.
CASH AND CASH EQUIVALENTS
Note
35.
STAFF STRENGTH
2013
2012
---------------- (Rupees in 000) ---------------
6
7
88,520,725
25,867,497
114,388,222
------------------- (Number) ---------------------
Permanent
On contract
Banks own staff strength
Outsourced
Total
36.
DEFINED BENEFIT PLANS
36.1
General description
94,161,446
15,234,326
109,395,772
8,986
23
9,009
4,261
13,270
9,056
29
9,085
3,971
13,056
The Bank operates a funded pension scheme established in 1986. The Bank also operates a funded gratuity scheme
for new employees and for those employees who have not opted for the pension scheme. The Bank also operates a
contributory benevolent fund scheme and provides post retirement medical benefits to eligible retired employees. The
benevolent fund scheme and the post-retirement medical scheme cover all regular employees of the Bank who joined the
Bank pre-privatization. The Bank also maintains an employee compensated absences scheme. The liabilities of the Bank in
respect of these schemes are determined based on actuarial valuations carried out using the Projected Unit Credit Method.
Actuarial valuations of the defined benefit schemes are carried out every year and the latest valuation was carried out as at
December 31, 2013.
36.2
Number of Employees under the scheme

The number of employees covered under the following defined benefit schemes are:
2013
2012
-------------------- (Number) --------------------
Pension fund
Gratuity fund
Benevolent fund
Post retirement medical benefit scheme
6,326
6,733
5,709
7,729
7,348
6,645
6,386
8,003
The pension fund, benevolent fund and post retirement medical benefit schemes include 4,484 (2012: 5,349), 2,446
(2012: 2,745) and 4,766 (2012: 4,695) members respectively who have retired or whose widows are receiving the benefits.
36.3
Principal actuarial assumptions

The actuarial valuations were carried out as at December 31, 2013 using the following significant assumptions:
2013
2012
------------------- Per annum -----------------Discount rate / expected rate of return on plan assets
Expected rate of salary increase
Expected rate of increase in pension / medical benefit
12.75%
10.75%
5.00%
12.00%
10.00%
4.25%
81

36.4
Reconciliation of (receivable from) / payable to defined benefit plans

Note
Present value of obligations

Fair value of plan assets
(Receivable) / payable
36.5
36.8.1.1
3,245,250
(3,304,214)
(58,964)
588,580
(436,139)
152,441
375,149
(856,535)
(481,386)
930,955
930,955
3,537,429
(5,137,979)
(1,600,550)
523,053
(409,974)
113,079
409,721
(836,962)
(427,241)
943,927
943,927
3,537,429
10,223
145,402
(604,437)
231,326
(74,693)
3,245,250
523,053
67,263
62,159
(118,176)
54,281
588,580
409,721
5,903
43,743
(82,787)
(1,431)
375,149
943,927
5,155
113,581
(102,704)
(29,004)
930,955
3,671,958
10,431
155,593
(610,815)
284,869
25,393
3,537,429
472,157
58,356
61,107
(93,440)
24,873
523,053
424,851
5,779
49,198
(84,794)
14,687
409,721
831,508
5,008
108,422
(106,033)
105,022
943,927
5,137,979
557,344
(2,416,372)
25,263
3,304,214
409,974
52,901
82,400
(123,041)
13,905
436,139
836,962
91,856
4,149
4,149
(82,958)
2,377
856,535
5,477,630
651,709
(1,020,452)
29,092
5,137,979
381,841
50,375
79,253
(98,284)
(3,211)
409,974
827,840
97,571
4,618
4,618
(94,751)
(2,934)
836,962
(1,600,550)
(43,851)
(170,393)
2,416,372
(56,105)
(604,437)
(58,964)
113,079
(120)
76,521
(82,400)
123,041
40,496
(118,176)
152,441
(427,241)
(171)
(46,359)
(4,149)
82,958
(3,637)
(82,787)
(481,386)
943,927
118,736
(29,004)
(102,704)
930,955
(1,805,672)
(1,939)
(200,816)
1,020,452
(1,760)
(610,815)
(1,600,550)
90,316
(61)
69,088
(79,253)
98,284
28,145
(93,440)
113,079
(402,989)
(168)
(47,212)
(4,618)
94,751
17,789
(84,794)
(427,241)
831,508
113,430
105,022
(106,033)
943,927
10,223
(411,942)
231,326
(170,393)
67,263
9,258
76,521
5,903
(48,113)
(4,149)
(46,359)
5,155
113,581
118,736
10,431
(496,116)
284,869
(200,816)
58,356
10,732
69,088
5,779
(48,373)
(4,618)
(47,212)
5,008
108,422
113,430
Movement in fair value of plan assets

Fair value at the beginning of the year
Interest income on plan assets
Contribution by the Bank
Contribution by the employees
Amount paid by the fund to the Bank
Actuarial gain / (loss) on plan assets
Fair value at the end of the year
36.7
2013
Gratuity fund
Benevolent
fund
Movement in defined benefit obligations

Obligations at the beginning of the year
Current service cost
Interest cost
Benefits paid by the Bank
Return allocated to other funds
Actuarial (gain) / loss on obligations
Obligations at the end of the year
36.6
2012
Post
Pension fund
Gratuity fund
Benevolent
Post
retirement
fund
retirement
medical benefit
medical benefit
---------------------------------------------------------------------------------- (Rupees in 000) --------------------------------------------------------------------------Pension fund
Movement in (receivable) / payable under defined benefit schemes

Opening balance
Mark-up receivable on Banks balance with the fund
(Reversal) / charge for the year
Amount paid by the Fund to the Bank
Actuarial (gain) / loss recognised in OCI
Closing balance
36.8
Charge for defined benefit plans
36.8.1
Cost recognised in profit and loss

Net interest on defined benefit asset / liability
36.8.1.1
Employees contribution
36.8.1.1
This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note 5.10.1.
36.8.2
Re-measurements recognised in OCI during the year

2012
Post
Pension fund
Gratuity fund
Benevolent
Post
retirement
fund
retirement
medical benefit
medical benefit
------------------------------------------------------------------------------- (Rupees in 000) -------------------------------------------------------------------------------Pension fund
Actuarial gain / loss on obligation

- Demographic assumptions
- Financial assumptions
- Experience adjustment
Return on plan assets over interest income
Adjustment for markup
Total re-measurements recognised in OCI
82
Annual Report 2013
2013
Gratuity fund
Benevolent
fund
6,368
(29,619)
97,944
25,263
(43,851)
(2,544)
(32,512)
(19,225)
13,905
(120)
17,073
(17,697)
2,055
2,377
(171)
713
(9,102)
37,393
-
(14,122)
(11,271)
29,092
(1,939)
3,224
(28,098)
(3,211)
(61)
(18,721)
4,034
(2,934)
(168)
(5,370)
(99,652)
-
56,105
(40,496)
3,637
29,004
1,760
(28,146)
(17,789)
(105,022)

36.9
Components of plan assets
2012
Benevolent
Pension fund
Gratuity fund
Benevolent
fund
fund
-------------------------------------------------------------- (Rupees in 000) -------- -----------------------------------------------------Pension fund
Cash and cash equivalents - net of current liabilities

Quoted securities
Ordinary shares
Preference shares
Term finance certificates
Unquoted securities
Certificates of Investment
Treasury Bills
Special Savings Certificates
Reverse Repo
Other
36.10
2013
Gratuity fund
14,909
307
340
2,393
3,067
93,436
472,327
5,750
11,407
13,097
15,768
59,226
3,645
8,302
2,100
550,653
13,795
15,425
123,422
228,253
81,294
308
(14,602)
436,139
23,328
344,283
412,713
47,006
856,535
77,477
1,964,777
666,686
14,602
3,304,214
628
71,477
21,528
2,504,018
154,306
582,025
163,754
7,851
12,869
1,786,458
227,310
194,085
5,137,979
409,974
836,962
Sensitivity analysis
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact on the present value of the defined benefit obligations
under the various employee benefit schemes. The increase / (decrease) in the present value of defined benefit obligations as a result of change in each assumption is summarized below:
2013
Pension fund
Post retirement medical

benefit
-------------------------------------- (Rupees in 000) ---------------------------------Increase in Discount Rate by 1%
Decrease in Discount Rate by 1%
Increase in expected future increment in salary by 1%
Decrease in expected future increment in salary by 1%
Increase in expected future increment in pension by 1%
Decrease in expected future increment in pension by 1%
Increase in expected future increment in medical benefit by 1%
Decrease in expected future increment in medical benefit by 1%
If the withdrawal rate is light
If the withdrawal rate is heavy
(73,361)
83,585
74,381
(66,015)
(24,306)
21,215
Gratuity fund
Benevolent
fund
(37,605)
43,343
46,609
(41,051)
(22,073)
18,019
(20,650)
23,099
(14,904)
12,949
(69,820)
80,465
78,858
(69,561)
(7,644)
6,674
Although the analysis does not take account of the full distribution of expected cash flows, it does provide an approximation of the sensitivity of the assumptions shown.
36.11
Expected contributions to be paid to the funds in the next financial year

The Bank contributes to the pension and gratuity funds according to the actuarys advice. Contribution to the benevolent fund is made by the Bank as per the rates set out in the benevolent
fund scheme. Based on actuarial advice, management estimates that the expected contribution and charge / (reversal) for the year ended December 31, 2014, would be as follows:
Pension fund
2014

benefit
---------------------------------------- (Rupees in 000) --------------------------------
36.12
Benevolent
fund
Expected contribution
2,833
99,392
3,879
Expected charge / (reversal) for the year
2,833
99,392
(60,106)
Maturity profile
The weighted average duration of the obligation (in years)
123,769
2013
Pension fund
36.13
Gratuity fund
7.44
Gratuity fund
7.71
Benevolent
fund
6.55

benefit
9.04
Funding Policy
The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund on any valuation date having regards to the various actuarial
assumptions such as projected future salary increase, expected future contributions to the fund, projected increase in liability associated with future service and the projected investment
income of the Fund.
37.
OTHER EMPLOYEE BENEFITS
37.1
Defined contribution plan

The Bank operates a contributory provident fund scheme for 6,733 (2012: 6,645) employees who are not in the pension scheme. The employer and employee each contribute 8.33% of the
basic salary to the funded scheme every month.
37.2
Employee Motivation and Retention Scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of the scheme for each year, if any, is fixed, and is accounted for in
the year to which the scheme relates. The scheme is managed by separate Trusts formed in respect of each year. During the year, Rs. 280.668 million (2012: Rs. 242.366 million) and
Rs. 41.716 million (2012: Rs. 30.796 million) were received by the Executives and the Chief Executive respectively from the scheme. No new Trust was set up during the current year.
37.3
Benazir Employees Stock Option Scheme

Based on a decision by the Cabinet Committee on Privatization, the banking sector has been excluded from the purview of Benazir Employees Stock Option Scheme.
83

38.
COMPENSATION OF DIRECTORS AND EXECUTIVES

President / Chief
Executive
Directors
Executives
2013
2012
2013
2012
2013
2012
--------------------------------------------- (Rupees in 000) ---------------------------------------------Fees
Managerial remuneration
33,915
34,133
120,707
4,028,135
3,384,117
363,550
301,221
1,442
83,526
1,457
Charge for defined contribution plan
2,476
2,263
79,098
71,479
Rent and house maintenance
4,346
3,607
533,190
454,066
Utilities
704
847
249,286
222,226
Medical
61
21
113,030
101,009
347,619
324,243
8,632
6,203
221,063
169,342
138,368
97,924
33,915
34,133
5,934,971
5,027,703
1,565
1,456
Conveyance
Others
Number of persons
The Banks President / Chief Executive Officer and certain Executives are provided with use of Bank maintained cars and household
equipment.
In addition to the above, all Executives including the Chief Executive Officer of the Bank, are also entitled to certain short and long
term employee benefits which are disclosed in notes 36 and 37 to these financial statements.
39.
FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. The fair value of
unquoted equity securities, other than investments in associates and subsidiaries, is determined on the basis of the break-up value
of these investments as per their latest available audited financial statements.
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot
be calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable
data regarding market rates for similar instruments.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from
their carrying values since these are either short-term in nature or, in the case of customer loans and deposits, are frequently
repriced.
84
Annual Report 2013

40.
SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
-------------------------------------------------- (Rupees in 000) ----------------------------------------------------Total income
Total expenses
Profit before tax
Segment return on assets (ROA)
Segment cost of funds
282,494
(84,684)
197,810
35.1%
1.4%
14,302,081
(1,069,574)
13,232,507
1.8%
6.1%
29,365,064
(22,462,568)
6,902,496
0.7%
3.7%
9,528,220
(3,736,564)
5,791,656
1.0%
6.4%
2,571,861
(889,418)
1,682,443
-

Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
-------------------------------------------------- (Rupees in 000) ----------------------------------------------------Total income
Total expenses
(Loss) / profit before tax
246,954
(371,448)
(124,494)
-7.7%
0.8%
11,244,138
(673,840)
10,570,298
1.8%
7.7%
33,870,607
(20,241,290)
13,629,317
1.5%
4.1%
8,651,585
(6,392,696)
2,258,889
0.4%
8.4%
1,677,651
(1,160,226)
517,425
-

Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
-------------------------------------------------- (Rupees in 000) ----------------------------------------------------Segment assets (gross of NPLs provisions)
Segment non performing loans (NPLs)
Segment provision held against NPLs
Segment liabilities
871,272
686,875
489,059
254,094
505,618,254
2,065,568
1,708,033
492,653,835
778,669,287
22,850,714
19,996,508
754,299,614
386,731,271
26,826,792
21,842,639
361,127,444
91,234,812
200,110
60,500
9,779,173
(709,289,506)
(709,289,506)

Corporate
Trading and
Retail
Commercial
Others
Inter segment
finance
sales
banking
banking
elimination
-------------------------------------------------- (Rupees in 000) ----------------------------------------------------Segment assets (gross of NPLs provisions)
Segment liabilities
1,433,174
1,016,151
441,892
1,069,695
414,116,266
2,122,695
1,520,078
401,751,874
669,774,770
25,272,491
20,660,063
640,391,016
374,148,056
28,735,549
20,781,624
351,919,970
88,943,472
200,110
60,153
17,581,083
(608,417,333)
(608,417,333)
Segment assets and liabilities include inter segment balances.

Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.
41.
TRUST ACTIVITIES
The Bank is not engaged in any significant trust activities. However, it acts as custodian for some of the Term Finance Certificates it arranges and
distributes on behalf of its customers.
42.
RELATED PARTY TRANSACTIONS

The Bank has related party transactions with its associates, subsidiary companies, employee benefit plans and its Directors and executive officers
(including their associates).
The Bank enters into transactions with related parties in the normal course of business. Contributions to and accruals in respect of staff retirement
benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives
/ officers is determined in accordance with the terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these unconsolidated financial
statements, are as follows:
85

42.1
2013
2012
Key
Subsidiaries
Associates
Other related
Directors
Key
Subsidiaries
Associates
Other related
management
parties
management
parties
personnel
personnel
----------------------------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------------------Directors

In current accounts
In deposit accounts
1,130,454
979,576
2,110,030
1,400,068
1,291,442
2,691,510
773,770
773,770

349,374
810,000
Investments
Opening balance
Investment made during the year
Investment redeemed / disposed off during the year
Transfer in / (out) - net
Closing balance
3,523,962
3,523,962
12,047,596
1,100,000
(6,472,616)
6,674,980
410,169
971,319
(491,881)
3,108,478
3,998,085
2,201,948
1,322,014
3,523,962
16,657,117
2,040,479
(6,850,000)
200,000
12,047,596
271,680
193,225
(54,736)
410,169
38,942
53,658
Advances
Opening balance
Addition during the year
Repaid during the year
124,163
72,108
(90,943)
-
2,155,149
11,913,710
9,707,517
(21,208,273)
-
871
(871)
-
122,016
118,883
(116,736)
-
11,873,489
12,490,542
(12,450,321)
-
Closing balance
105,328
2,155,149
412,954
124,163
11,913,710
Provision held against advances
2,155,149
Other Assets
Interest mark-up accrued
Prepaid insurance
Advance for Pre-IPO investment
Dividend Receivable
Other receivable
30
-
4,695
4,240
1,201
-
145,551
58,964
-
65
-
107
17,319
1,004,226
-
438,828
1,600,550
364,000
-
Borrowings
Opening balance
Borrowings during the year
Settled during the year
2,155,493
(2,155,493)
306,215
16,356,760
(16,662,975)
1,282,323
(1,282,323)
4,548,669
(4,548,669)
449,740
86,365,214
(86,508,739)
Closing balance
306,215
Overdrawn nostros
56,424
6,173,963
22,861,734
(21,522,949)
(6,275)
7,506,473
98,008
980,912
(954,465)
124,455
142,656
173,215,130
(172,072,335)
1,285,451
819,332
67,507,686
(67,661,062)
665,956
1,913,538
201,691,134
(202,918,770)
(604,043)
81,859
2,898,779
6,948,406
(3,673,222)
6,173,963
73,495
925,508
(900,995)
98,008
131,902
162,987,974
(162,977,220)
142,656
1,217,179
55,089,236
(55,487,083)
819,332
1,486,313
82,505,997
(82,078,772)
1,913,538
5,998
32,260
-
1,097
-
4,652
187
709
152,441
-
75,061
-
1,519
0
-
170
167
-
9,328
837
113,079
-
3,633,699
3,710,543
78,051
-
6,285,868
6,378,146
71,993
-
2,914,491
2,817,341

Opening balance
Received during the year
Withdrawn during the year
Closing balance
Subordinated loans
Other Liabilities
Interest / mark-up payable on deposits
Interest / mark-up payable on borrowings
Interest / mark-up payable on subordinated loans
Payable to staff retirement fund
Unearned income
Contingencies and Commitments
Letter of guarantee
Forward foreign exchange contracts purchase
Forward foreign exchange contracts sale
2013
2012
Key
Subsidiaries
Associates
Other related
Directors
Key
Subsidiaries
Associates
Other related
management
parties
management
parties
personnel
personnel
----------------------------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------------------Directors

Commission / charges recovered
Dividend income
Net gain/ (loss) on sale of securities
Realised gain on derivative transactions
Other income
Mark-up / return / interest paid
Remuneration paid
Post employment benefits
Non-executive directors fee
Net charge for defined contribution plans
Net reversal for defined benefit plans
Payment for employee motivation and retention scheme
Donation
Insurance premium paid
Insurance claims settled
Other Expenses
86
Annual Report 2013
14
-
6,402
84
153
30,278
535
425,523
1,103
18,178
36,680
859,300
4,266
930,005
27,459
459,451
8,719
-
77
30
-
7,957
24
685
57,260
278
66,211
38,500
987
2,058,392
(289,190)
4,682
1,828,083
36,929
1,136
8,006
1,123,975
-
260,037
33,915
-
3,127
605,626
15,476
-
41,477
-
56,922
268,499
174,944
20,605
88,148
175,794
(89,722)
87,192
194,070
34,133
-
3,078
466,004
16,036
-
911
-
13,662
257,745
151,292
-
100,169
163,849
(127,219)
250,000
75
79,446

43.
CAPITAL ADEQUACY
43.1
The State Bank of Pakistan (SBP) through its BPRD Circular No 6 dated August 15, 2013 has issued Basel III Capital instructions
for Banks / DFIs. The revision to the previously applicable Capital Adequacy regulations pertain to components of eligible capital
and related deductions. The amendments have been introduced with an aim to further strengthen the existing capital related rules.
Basel III instructions have become effective from December 31, 2013; however, there is a transitional phase during which the
complete requirements would become applicable with full implementation by December 31, 2019.
The Banks capital adequacy is reported using the rules and ratios provided by the State Bank of Pakistan. The capital adequacy
ratio is a measure of the amount of a Banks capital expressed as a percentage of its risk weighted assets (RWAs). Banking
operations are categorized as either Trading Book or Banking Book and RWAs are determined according to specific treatments as
per the requirements of SBP that measure the varying levels of risk attached to on balance sheet and off-balance sheet exposures.
Under the current capital adequacy regulations, credit risk and market risk exposures are measured using the Standardized
Approach and operational risk is measured using the Basic Indicator Approach. Credit risk mitigants are also applied against the
Banks exposures based on eligible collateral.
The Bank has revised its Internal Capital Adequacy Assessment Process (ICAAP) as per the new guidelines provided by the SBP.
The ICAAP has been approved by the Banks Board of Directors and submitted to the SBP. The Bank additionally covers risks
not yet included under Pillar I, so as to carry adequate capital to cater for any future business requirements. The Bank reviews
the ICAAP on an annual basis and changes/updates are recommended to the Board Risk Management Committee for onward
approval of the Board of Directors.
The Bank plans to move towards the Advanced Approaches as prescribed under Basel Framework, including the Foundation
Internal Ratings Based Approach for credit risk, Internal Models Approach for market risk and the Alternate Standardized Approach
for operational risk.
43.2
Capital Management
The objective of managing capital is to safeguard the Banks ability to continue as a going concern. It is the policy of the Bank to
maintain a strong capital base so as to maintain investor, depositor and market confidence and to sustain future development of
the business. The Bank aims to maintain an optimum level of capital along with maximizing shareholders return as we consider a
sound capital position as more appropriate as opposed to leverage supporting business growth.
Statutory minimum capital and capital adequacy requirements
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of accumulated
losses) for Banks to be raised to Rs.10 billion by the year ending December 31, 2013. The paid-up capital of the Bank for the
year ended December 31, 2013 stood at Rs.12,241.798 million (2012: Rs.12,241.798 million) and is in compliance with SBP
requirements.
Banks are also required to maintain a minimum Capital Adequacy Ratio (CAR) of 10% of the risk weighted exposures of the Bank.
Further, under Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio of
5.0% and 6.5%, respectively, as at December 31, 2013. As at December 31, 2013 the Bank was fully compliant with prescribed
ratios as the Banks CAR was 13.3% whereas CET 1 and Tier 1 ratios both stood at 10.0%. The Bank and its individually regulated
operations have complied with all capital requirements throughout the year.
Tier 1 capital comprises of Common Equity Tier 1 (CET 1) and Additional Tier 1 (AT 1) capital.
CET 1 capital includes fully paid-up capital, balance in share premium account, general reserves as per the financial statements
and net unappropriated profits.
AT 1 capital includes instruments meeting the prescribed SBP criteria e.g. perpetual non-cumulative preference shares.
The deductions from Tier 1 capital include mainly:
i)
ii)
iii)
iv)
v)
vi)
Book value of goodwill / intangibles;

Deficit on revaluation of available for sale investments,;
Reciprocal cross holdings in equity capital instruments of other banks, financial institutions and insurance companies;
Investment in mutual funds above a prescribed ceiling;
Threshold deductions applicable from 2014 on deferred tax assets and certain investments;
50% of investments in majority owned securities or other financial subsidiaries not consolidated in the statement of financial
position, during transition phase.
Tier 2 capital includes general provisions for loan losses, surplus on the revaluation of fixed assets and equity investments, foreign
exchange translation reserves and subordinated debts (meeting the revised eligibility criteria). The deductions from Tier 2 include
mainly:
i) Reciprocal cross holdings in other capital instruments of other banks, financial institution and insurance companies;
ii) 50% of investments in majority owned securities or other financial subsidiaries not consolidated in the statement of financial
position, during transition phase.
87

43.3
Capital Structure
2013
Amount
2012
Amounts subject
to Pre - Basel III
treatment
-------------------------------------- Rupees in 000 -----------------------Common Equity Tier 1 capital (CET1): Instruments and reserves
1
2
3
4
5
6
7
8
Fully Paid-up Capital / Capital deposited with SBP

Balance in Share Premium Account
Reserve for issue of Bonus Shares
General/ Statutory Reserves
Gain/(Losses) on derivatives held as Cash Flow Hedge
Unappropriated/unremitted profits/ (losses)
Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank subsidiaries (amount allowed in
CET1 capital of the consolidation group)
CET 1 before Regulatory Adjustments
12,241,798
19,658,933
42,634,545
12,241,798
17,797,537
37,415,599
74,535,276
67,454,934
1,557,399
718,500
734,938
4,962
-
1,626,018
738,125
19,498
32,298
-
Common Equity Tier 1 capital: Regulatory adjustments

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Goodwill (net of related deferred tax liability)

All other intangibles (net of any associated deferred tax liability)
Shortfall of provisions against classified assets
Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability)
Defined-benefit pension fund net assets
Reciprocal cross holdings in CET1 capital instruments
Cash flow hedge reserve
Investment in own shares/ CET1 instruments
Securitization gain on sale
Capital shortfall of regulated subsidiaries
Deficit on account of revaluation from banks holdings of property/ AFS
Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and insurance entities that are outside the scope of
regulatory consolidation (amount above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related tax liability)
Amount exceeding 15% threshold
of which: significant investments in the common stocks of financial entities
of which: deferred tax assets arising from temporary differences
National specific regulatory adjustments applied to CET1 capital
Investment in TFCs of other banks exceeding the prescribed limit
Any other deduction specified by SBP
Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions
Total regulatory adjustments applied to CET1 (sum of 9 to 29)
Common Equity Tier 1
(a)
58,964
4,705,345
7,721,144
2,301,714
4,717,653
66,814,132
62,737,281
2,403,631
-
Additional Tier 1 (AT 1) Capital

31
32
33
34
35
36
Qualifying Additional Tier-1 instruments plus any related share premium

of which: Classified as equity
of which: Classified as liabilities
Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties (amount allowed in group AT 1)
of which: instrument issued by subsidiaries subject to phase out
AT1 before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
37
38
39
40
41
42
43
44
45
46
Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment)
Investment in own AT1 capital instruments
Reciprocal cross holdings in Additional Tier 1 capital instruments
regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which, during transitional
period, remain subject to deduction from tier-1 capital
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
Total of Regulatory Adjustment applied to AT1 capital
Additional Tier 1 capital
Additional Tier 1 capital recognized for capital adequacy
Tier 1 Capital (CET1 + admissible AT1)
88
Annual Report 2013
(b)
2,301,714
4,705,345
-
2,301,714
2,301,714
-
(c=a+b)
66,814,132
62,737,281

43.3
Capital Structure (Contd.)

2013
Amount
2012
Amounts subject
to Pre - Basel III
treatment
-------------------------------------- Rupees in 000 -----------------------Tier 2 Capital

47
48
49
50
51
52
53
54
55
56
57
Qualifying Tier 2 capital instruments under Basel III

Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments)
Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group tier 2)
of which: instruments issued by subsidiaries subject to phase out
General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk Weighted Assets
Revaluation Reserves
of which: Revaluation reserves on Property
of which: Unrealized Gains/Losses on AFS
Foreign Exchange Translation Reserves
Undisclosed/Other Reserves (if any)
T2 before regulatory adjustments
6,115,067
1,838,881
8,350,219
6,852,475
1,497,744
14,025,502
24,214,602
1,262,832
9,167,301
6,898,516
2,268,785
11,267,676
27,812,876
2,301,714
-
2,301,714
-
2,301,714
25,511,162
25,511,162
25,511,162
88,248,443
Tier 2 Capital: regulatory adjustments

58
59
60
61
62
63
64
65
66
67
Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-2 capital
Reciprocal cross holdings in Tier 2 instruments
Investment in own Tier 2 capital instrument
regulatory consolidation
Amount of Regulatory Adjustment applied to T2 capital
Tier 2 capital (T2)
Tier 2 capital recognized for capital adequacy
Excess Additional Tier 1 capital recognized in Tier 2 capital
Total Tier 2 capital admissible for capital adequacy
(d)
2,301,714
21,912,888
21,912,888
21,912,888
TOTAL CAPITAL (T1 + admissible T2)
(e=c+d)
88,727,020
Total Risk Weighted Assets
(i=f+g+h)
668,610,740
588,679,665
(f)
461,310,511
420,686,279
71
72
73
Total Credit Risk Weighted Assets

Risk weighted assets in respect of amounts subject to Pre-Basel III Treatment
of which: recognized portion of investment in capital of banking, financial and insurance entities where holding is more than 10% of
the issued common share capital of the entity
of which: deferred tax assets
of which: Defined-benefit pension fund net assets
of which: [insert name of adjustment]
58,964
-
74
Total Market Risk Weighted Assets
(g)
106,860,498
72,719,608
75
Total Operational Risk Weighted Assets
(h)
100,439,731
95,273,778
68
69
70
Capital Ratios and buffers (in percentage of risk weighted assets)

76
77
78
79
80
81
82
83
CET1 to total RWA

Tier-1 capital to total RWA
Total capital to RWA
Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus any other buffer requirement)
of which: capital conservation buffer requirement
of which: countercyclical buffer requirement
of which: D-SIB or G-SIB buffer requirement
CET1 available to meet buffers (as a percentage of risk weighted assets)
(a/i)
(c/i)
(e/i)
10.0%
10.0%
13.3%
10.7%
10.7%
15.0%
5.0%
6.5%
10.0%
10.0%
National minimum capital requirements prescribed by SBP

84
85
86
CET1 minimum ratio

Tier 1 minimum ratio
Total capital minimum ratio
Amounts below the thresholds for deduction (before risk weighting)
87
88
89
Non-significant investments in the capital of other financial entities

Significant investments in the common stock of financial entities
Deferred tax assets arising from temporary differences (net of related tax liability)
1,838,881
5,766,381
-
1,262,832
5,258,578
-
Applicable caps on the inclusion of provisions in Tier 2

90
91
92
93
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior to application of cap)
Cap on inclusion of provisions in Tier 2 under standardized approach
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
89

43.4
Capital Structure Reconciliation

Step 1
Assets
Investments
Advances
Deferred tax assets - net
Other assets
Total assets
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Total liabilities
Share capital
Reserves
Total equity
Total liabilities and equity
90
Annual Report 2013
Balance Sheet
Under regulatory
as per published
scope of
financial
consolidation
statements
As at Dec 31,
As at Dec 31,
2013
2013
--------------- (Rupees in 000) ---------------88,520,725
25,867,497
28,835,115
423,777,250
390,813,462
24,607,937
27,316,665
1,009,738,651
88,520,725
25,867,497
28,835,115
423,777,250
390,813,462
24,607,937
27,316,665
1,009,738,651
16,590,884
40,573,874
827,847,738
665,328
1,087,240
22,059,590
908,824,654
16,590,884
40,573,874
827,847,738
665,328
1,087,240
22,059,590
908,824,654
12,241,798
33,681,210
42,634,545
88,557,553
12,356,444
1,009,738,651
12,241,798
33,681,210
42,634,545
88,557,553
12,356,444
1,009,738,651

43.4

Step 2
Assets
Investments
of which: Non-significant capital investments in capital of other financial institutions exceeding 10% threshold
of which: significant capital investments in financial sector entities exceeding regulatory threshold
of which: Mutual Funds exceeding regulatory threshold
of which: reciprocal crossholding of capital instrument
of which: others (mention details)
Advances
shortfall in provisions/ excess of total EL amount over eligible provisions under IRB
general provisions reflected in Tier 2 capital
Fixed Assets
of which: Goodwill
of which: Intangibles
Deferred Tax Assets
of which: DTAs excluding those arising from temporary differences
of which: DTAs arising from temporary differences exceeding regulatory threshold
Other assets
Total assets
Bills payable
Borrowings
Sub-ordinated loans
of which: eligible for inclusion in AT1
of which: eligible for inclusion in Tier 2
Deferred tax liabilities
of which: DTLs related to goodwill
of which: DTLs related to intangible assets
of which: DTLs related to defined pension fund net assets
of which: other deferred tax liabilities
Other liabilities
Total liabilities
Share capital
of which: amount eligible for CET1
of which: amount eligible for AT1
Reserves
of which: portion eligible for inclusion in CET1(provide breakup)
of which: portion eligible for inclusion in Tier 2
Unappropriated profit/ (losses)
Minority Interest
of which: portion eligible for inclusion in CET1
of which: portion eligible for inclusion in AT1
In case of Deficit on revaluation (deduction from CET1)
Balance Sheet as per

Under regulatory scope of Reference
published financial
consolidation
statements
As at Dec 31, 2013
As at Dec 31, 2013
------------------------- (Rupees in 000) ----------------------------88,520,725
25,867,497
28,835,115
423,777,250
2,403,631
734,938
390,813,462
718,500
1,838,881
24,607,937
1,557,399
27,316,665
58,964
88,520,725
25,867,497
28,835,115
423,777,250
2,403,631
734,938
390,813,462
718,500
1,838,881
24,607,937
1,557,399
27,316,665
58,964
1,009,738,651
1,009,738,651
16,590,884
40,573,874
827,847,738
665,328
1,087,240
1,087,240
22,059,590
908,824,654
16,590,884
40,573,874
827,847,738
665,328
1,087,240
1,087,240
22,059,590
908,824,654
12,241,798
12,241,798
33,681,210
19,658,933
14,025,502
42,634,545
12,356,444
10,193,035
2,163,409
1,009,738,651
12,241,798
12,241,798
33,681,210
19,658,933
14,025,502
42,634,545
12,356,444
10,193,035
2,163,409
1,009,738,651
a
b
c
d
e
f
g
j
k
h
i
l
m
n
o
p
q
r
s
t
u
v
w
x
y
z
aa
ab
91

43.4

Step 3
Component of
regulatory capital
reported by bank
(Rupees in 000)
Source based on
reference number
from step 2
Common Equity Tier 1 capital (CET1): Instruments and reserves

1
2
3
4
5
6
7
8
Fully Paid-up Capital/ Capital deposited with SBP

Unappropriated/unremitted profits/(losses)
Minority Interests arising from CET1 capital instruments issued to third party
by consolidated bank subsidiaries (amount allowed in CET1 capital of the
consolidation group)
12,241,798
19,658,933
42,634,545
(s)
(u)
(w)
74,535,276
(x)
1,557,399
718,500
(j) - (o)
(k) - (p)
(f)

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability)
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not
own more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation (amount
above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above 10%
threshold, net of related tax liability)
Any other deduction specified by SBP (mention details)
Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover
deductions
734,938
4,962
-
{(h) - (r} * x%
{(l) - (q)} * x%
(d)
(a) - (ac) - (ae)
(b) - (ad) - (af)
(i)
(ab)
4,705,345
7,721,144
66,814,132

31
32
33
34
35
36
92

Additional Tier-1 capital instruments issued by consolidated subsidiaries and held
by third parties (amount allowed in group AT 1)
Annual Report 2013
(t)
(m)
(y)

43.4
Component of
regulatory capital
reported by bank
(Rupees in 000)
Source based on
reference number
from step 2

37
38
39
40
41
42
43
44
45
46
Investment in mutual funds exceeding the prescribed limit (SBP specific

adjustment)
insurance entities that are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital
based on pre-Basel III treatment which, during transitional period, remain subject
to deduction from tier-1 capital
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to
cover deductions
2,403,631
-
(ac)
(ad)
2,301,714
4,705,345
66,814,132
Tier 2 Capital
47
48
49
50
51
52
53
54
55
56
57

Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III
instruments)
Tier 2 capital instruments issued to third party by consolidated subsidiaries
(amount allowed in group tier 2)
General Provisions or general reserves for loan losses-up to maximum of 1.25%
of Credit Risk Weighted Assets
Revaluation Reserves eligible for Tier 2
of which: portion pertaining to Property
of which: portion pertaining to AFS securities
(n)
(z)
1,838,881
(g)
6,852,475
1,497,744
14,025,502
24,214,602
portion of (aa)
(v)

58
59
60
61
62
63
64
65
66
67
Portion of deduction applied 50:50 to core capital and supplementary capital

based on pre-Basel III treatment which, during transitional period, remain subject
to deduction from tier-2 capital
insurance entities that are outside the scope of regulatory consolidation
Tier 2 capital (T2)
(ae)
2,301,714
21,912,888
21,912,888
21,912,888
(af)
88,727,020
2,301,714
-
93

43.5
Main Features Template of Regulatory Capital Instruments
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
94
Disclosure template for main features of regulatory capital instruments

Main Features
Common Shares
Issuer
United Bank Limited
Unique identifier (eg KSE Symbol or Bloomberg identifier etc.)
On KSE UBL and on Bloomberg UBL PA.
Governing law(s) of the instrument
Relevant Capital Market Laws
Regulatory treatment
Transitional Basel III rules
Post-transitional Basel III rules
Eligible at solo/ group/ group&solo
Group & Standalone
Instrument type
Ordinary Shares
Amount recognized in regulatory capital (Currency in PKR thousands, as of
12,241,798
reporting date)
Par value of instrument
Rs. 10 each
Accounting classification
Shareholders equity
Original date of issuance
1959
Perpetual or dated
Perpetual
Original maturity date
No maturity
Issuer call subject to prior supervisory approval
Not applicable
Optional call date, contingent call dates and redemption amount
Not applicable
Subsequent call dates, if applicable
Not applicable
Coupons / dividends
Fixed or floating dividend/ coupon
Not applicable
Coupon rate and any related index/ benchmark
Not applicable
Existence of a dividend stopper
No
Fully discretionary, partially discretionary or mandatory
Fully discretionary
Existence of step up or other incentive to redeem
No
Noncumulative or cumulative
Not applicable
Convertible or non-convertible
Non Convertible
If convertible, conversion trigger(s)
Not applicable
If convertible, fully or partially
Not applicable
If convertible, conversion rate
Not applicable
If convertible, mandatory or optional conversion
Not applicable
If convertible, specify instrument type convertible into
Not applicable
If convertible, specify issuer of instrument it converts into
Not applicable
Write-down feature
Not applicable
If write-down, write-down trigger(s)
Not applicable
If write-down, full or partial
Not applicable
If write-down, permanent or temporary
Not applicable
If temporary write-down, description of write-up mechanism
Not applicable
Position in subordination hierarchy in liquidation (specify instrument type
Common equity (ranks after all creditors
immediately senior to instrument)
including depositors)
Non-compliant transitioned features
Not applicable
If yes, specify non-compliant features
Not applicable
Annual Report 2013

43.6
Capital Adequacy Ratio

Risk weighted exposures
Capital requirements
Risk weighted assets
2013
2012
2013
2012
--------------------------------- (Rupees in 000) ---------------------------------
Credit risk
Claims on:
Federal and Provincial Governments, SBP and other
sovereigns in foreign currency
Public Sector Enterprises
Banks
Corporates
Retail portfolio
Secured by residential property
Past due loans
Listed equity investments
Unlisted equity investments
Commercial Entity
Investments in fixed assets
Significant investment & DTA
Other assets
Market risk
Interest rate risk
Equity exposure risk
Foreign exchange risk
Operational risk
Capital adequacy ratio
Total eligible regulatory capital held
Total risk weighted assets
6,542,141
960,626
5,004,235
25,960,713
1,989,795
143,327
1,821,508
196,915
22,972
67,623
2,305,054
1,116,144
46,131,051
4,974,474
1,088,721
4,019,364
22,434,817
2,355,548
155,967
1,856,233
182,635
1,677,854
2,280,505
1,042,511
42,068,628
65,421,406
9,606,261
50,042,345
259,607,130
19,897,945
1,433,267
18,215,078
1,969,145
229,724
676,228
23,050,538
11,161,443
461,310,511
49,744,740
10,887,206
40,193,636
224,348,168
23,555,479
1,559,671
18,562,333
1,826,351
16,778,535
22,805,050
10,425,110
420,686,279
5,713,576
2,675,060
160,204
8,548,840
8,035,179
62,715,069
4,555,843
1,117,071
144,654
5,817,568
7,621,902
55,508,098
71,419,698
33,438,255
2,002,545
106,860,498
100,439,731
668,610,740
56,948,038
13,963,390
1,808,180
72,719,608
95,273,778
588,679,665
88,727,020
668,610,740
13.3%
88,248,443
588,679,665
15.0%
95

43.7
Credit risk - General disclosures

The Bank follows the Standardized Approach for its credit risk exposures, which sets out fixed risk weights corresponding to
external credit ratings or type of exposure, whichever is applicable.
Under the Standardized Approach, the capital requirement is based on the credit rating assigned to counterparties by External
Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Bank selects particular ECAIs for each type of exposure.
The Bank utilizes the credit ratings assigned by Pakistan Credit Rating Agency (PACRA), Japan Credit Rating Company Limited
Vital Information Systems (JCR-VIS), Fitch, Moodys and Standard & Poors (S & P). The Bank also utilizes rating scores of Export
Credit Agencies (ECAs) participating in the Arrangement on Officially Supported Export Credits.
Types of exposure and ECAIs used
Corporates
Banks
Sovereigns
Public sector enterprises
FITCH
Moodys
S&P
PACRA
JCR-VIS
P
-
P
P
-
P
-
P
P
P
P
P
P
ECA
scores
P
-
Mapping to SBP Rating Grades

For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The mapping tables used for
converting ECAI ratings to SBP rating grades are given below:
Long Term Rating Grades mapping
SBP Rating grade
Fitch
Moodys
S&P
PACRA
JCR-VIS
ECA
Scores
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1
B2
B3
Caa1 and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
0
1
SBP Rating Grade
Fitch
Moodys
S&P
PACRA
JCR-VIS
S1
S1
S2
S3
S4
F1
F1
F2
F3
Others
P-1
P-1
P-2
P-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
Short Term Rating Grades mapping
96
Annual Report 2013
5
6
7

43.8
Credit exposures subject to Standardized Approach
Exposures
Claims on Federal and Provincial Governments and
SBP, denominated in PKR
Foreign currency claims on SBP arising out of statutory
obligations in Pakistan
Rating
category /
risk weights
2013
----------------------- (Rupees in 000) -----------------------Amount
Deduction
Net amount
outstanding
CRM
2012
----------------------- (Rupees in 000) -----------------------Amount
Deduction
Net amount
outstanding
CRM
14,708,114
14,708,114
23,791,720
23,791,720
123,596,908
24,042,563
99,554,345
167,163,379
51,224,862
115,938,517
7,941,106
7,941,106
6,323,688
6,323,688
Claims on other sovereigns and on

Government of Pakistan or provincial
governments or SBP denominated in
currencies other than PKR
1
2
3
4,5
6
Unrated
406,079
12,405,042
2,041,352
5,881,085
37,359,091
58,092,649
406,079
12,405,042
2,041,352
5,881,085
37,359,091
58,092,649
1,665,551
2,603,426
10,730,934
2,220,842
27,758,497
44,979,250
1,665,551
2,603,426
10,730,934
2,220,842
27,758,497
44,979,250
Corporates
0
1
2
3,4
5,6
Unrated
23,164,799
33,394,224
725,852
61,144
258,479,118
315,825,137
29,279
27,404
20,977,585
21,034,268
23,164,799
33,364,945
698,449
61,144
237,501,533
294,790,869
26,422,834
39,039,389
150,868
662,516
216,560,541
282,836,148
4,247
18,159,153
18,163,400
26,422,834
39,035,142
150,868
662,516
198,401,388
264,672,748
Claims on banks with maturity less than 3 months and

denominated in foreign currency
1,2,3
4,5
6
Unrated
603,360
2,686,759
3,290,119
603,360
2,686,759
3,290,119
612,611
3,381,066
3,993,677
612,611
3,381,066
3,993,677
Banks - others
0
1
2,3
4,5
6
Unrated
75,492,754
38,576,693
3,352,721
6,508,366
14,132,765
138,063,298
25,822,976
39,264
25,862,241
49,669,777
38,576,693
3,352,721
6,508,366
14,093,501
112,201,058
41,874,325
34,576,645
3,027,661
5,873,036
6,369,567
91,721,234
6,451,430
6,451,430
35,422,895
34,576,645
3,027,661
5,873,036
6,369,567
85,269,804
0
1
2,3
4,5
6
Unrated
12,176,901
54,497,938
66,674,839
1,501,690
39,555,501
41,057,191
10,675,211
14,942,437
25,617,648
7,556,089
70,046,865
77,602,954
1,072
51,294,459
51,295,531
7,555,017
18,752,406
26,307,423
75%
35%
29,300,295
4,095,047
33,395,342
2,769,701
2,769,701
26,530,594
4,095,047
30,625,641
34,157,061
4,456,204
38,613,265
2,749,755
2,749,755
31,407,306
4,456,204
35,863,510
Equity investments
- Listed
- Unlisted
- Commercial Entity (Holding grater than 10%)
100%
150%
1000%
1,969,145
153,150
67,623
2,189,918
1,969,145
153,150
67,623
2,189,918
1,826,351
11,185,690
13,012,041
1,826,351
11,185,690
13,012,041
Past due loans secured against mortgage

of residential property:
- less than 20% provided
- greater than 20% provided
100%
50%
Past due loans - others

- Less than 20% provided
- Between 20% to 50% provided
- More than 50% provided
68,351
241,163
309,514
68,351
241,163
309,514
173,111
353,437
526,548
173,111
353,437
526,548
150%
100%
50%
6,504,425
6,783,712
2,971,651
16,259,787
20
20
6,504,405
6,783,712
2,971,651
16,259,768
8,464,060
8,171,304
3,488,318
20,123,682
2,932,700
2,932,700
5,531,360
8,171,304
3,488,318
17,190,982
250%
100%
23,050,538
11,161,443
23,050,538
11,161,443
22,805,050
10,425,110
22,805,050
10,425,110
814,558,715
114,765,984
699,792,731
803,917,746
132,817,678
671,100,068
Retail portfolio
Significant investment & DTA (greater than 15 % threshold

Fixed assets
Others
Credit Risk: Disclosures with respect to Credit Risk Mitigation for Standardized Approach
The Bank has adopted the Comprehensive Approach of Credit Risk Mitigation for the Banking Book. Under this approach, cash, lien on deposits, government securities and eligible guarantees etc.
are considered as eligible collateral. The Bank has in place detailed guidelines with respect to the valuation and management of each of these types of collateral. Where the Banks exposure to an
obligor is secured by eligible collateral, the Bank reduces its exposure for the calculation of capital requirement by the realizable amount of the collateral, adjusted for any applicable haircuts.
No credit risk mitigation benefit is taken in the Trading Book.
For each asset class, the risk weights as specified by the SBP or corresponding to the SBP rating grades are applied to the net amount for the calculation of Risk Weighted Assets.
97

44.
RISK MANAGEMENT
This section presents information about the Banks exposure to and its management and control of risks, in particular, the primary
risks associated with its use of financial instruments such as credit, market, liquidity, and operational risks.
The Bank has an integrated risk management structure in place. The Board Risk Management Committee (BRMC) oversees
the entire risk management process of the Bank. The Risk and Credit Policy Group is responsible for the development and
implementation of all risk policies as approved by the BRMC / BoD. The group is organized into the functions of Market & Financial
Institutions Risk, Credit Policy & Research, Credit Risk Management and Operational Risk & Basel II. Each risk function is headed
by a senior manager who reports directly to the Group Head, Risk and Credit Policy. The role of the Risk and Credit Policy Group
includes:
44.1
Determining guidelines relating to the Banks risk appetite.
Recommending risk management policies in accordance with the Prudential Regulations, Basel II framework and international
best practices.
Reviewing policies/ manuals and ensuring that these are in accordance with BRMC / BoD approved risk management policies.
Developing systems and resources to review the key risk exposures of the Bank.
Approving credits and granting approval authority to qualified and experienced individuals.
Reviewing the adequacy of credit training across the Bank.
Organizing portfolio reviews focusing on quality assessment, risk profiles, industry concentrations, etc.
Setting systems to identify significant portfolio indicators, problem credits and level of provisioning required.
Credit risk
Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time
thereafter. This risk arises from the potential that a customers or counterpartys willingness or ability to meet such an obligation is
impaired, resulting in an economic loss to the Bank.
The credit risk management process is driven by the Banks Credit Policy, which provides policies and procedures in relation to
credit initiation, approval, documentation and disbursement, credit maintenance and remedial management.
Individual credit authorities are delegated to credit officers by the Board according to their seasoning / maturity. Approvals for
Corporate and Consumer loans are centralized, while approval authorities for Commercial and SME exposures are delegated to
a Regional level. All credit policy functions are centrally organized.
Concentrations of credit risk exist if clients are engaged in similar activities, or are located in the same geographical region, or
have comparable economic characteristics such that their ability to meet contractual obligations would be similarly affected by
changes in economic, political or other conditions. The Bank manages, limits and controls concentrations of credit risk to individual
counterparties and groups, and to industries, where appropriate. Limits are also applied to portfolios or sectors where the Bank
considers it appropriate to restrict credit risk concentrations, or to areas of higher risk, or to control the rate of portfolio growth.
98
Annual Report 2013

44.2
Segmental information
44.2.1
Segments by class of business

2013
Gross advances
Deposits
Contingencies and
commitments
(Rupees in 000)
Chemical and pharmaceuticals
Percent
(Rupees in 000)
Percent
(Rupees in 000)
Percent
5,979,475
1.37%
5,919,523
0.72%
5,804,329
0.82%
Agri business
58,684,521
13.44%
27,176,727
3.28%
9,415
0.00%
Textile spinning
21,677,722
4.96%
1,498,771
0.18%
839,676
0.12%
Textile weaving
4,207,145
0.96%
2,201,841
0.27%
3,573,715
0.50%
Textile composite
23,561,718
5.39%
2,587,416
0.31%
0.00%
Textile others
13,587,327
3.11%
2,970,919
0.36%
3,537,268
0.50%
Cement
3,790,075
0.87%
13,510,737
1.63%
1,577,246
0.22%
Sugar
4,380,318
1.00%
3,518,261
0.42%
456,776
0.06%
Shoes and leather garments
2,084,008
0.48%
3,590,046
0.43%
323,007
0.05%
Automobile and transportation equipment
4,796,131
1.10%
5,642,678
0.68%
3,399,734
0.48%
15,038,641
3.44%
16,088,946
1.94%
454,858,475
64.23%
0.00%
Financial
Insurance
0.00%
10,420,804
1.26%
539
3,944,310
0.90%
4,065,121
0.49%
1,070,613
0.15%
57,169,281
13.09%
35,923,933
4.34%
80,787,473
11.41%
1,699,829
0.39%
571,718
0.07%
673,752
0.10%
140,838
0.03%
2,719,365
0.33%
241,257
0.03%
9,793,869
2.24%
23,435,295
2.83%
32,455,017
4.58%
Wholesale traders
21,376,513
4.89%
36,698,924
4.43%
4,600,213
0.65%
Fertilizer dealers
5,253,653
1.20%
6,534,660
0.79%
3,134,964
0.44%
272,606
0.06%
1,416,193
0.17%
0.00%
21,588,603
4.94%
4,903,996
0.59%
5,271,293
0.74%
Airlines
9,105,607
2.08%
1,154,084
0.14%
49,250
0.01%
Cables
234,513
0.05%
495,859
0.06%
518,822
0.07%
20,415,953
4.67%
11,254,221
1.36%
7,336,285
1.04%
0.00%
323,000
0.04%
3,146,971
0.44%
3,144,086
0.72%
2,153,155
0.26%
3,374,569
0.48%
249,106
0.06%
397,203
0.05%
217,179
0.03%
2,458,432
0.56%
3,626,013
0.44%
66,428
0.01%
0.00%
21,610,136
2.61%
73,181
0.01%
687,729
0.16%
669,688
0.08%
100
0.00%
Polyester and fiber
4,128,139
0.95%
272,942
0.03%
45,712
0.01%
Telecommunication
6,275,345
1.44%
13,678,172
1.65%
251,885
0.04%
Individuals
46,632,289
10.68%
441,887,220
53.38%
5,104,595
0.72%
Others
64,391,300
14.74%
118,930,171
14.37%
85,391,822
12.08%
436,749,082
100.00%
827,847,738
100.00%
708,191,561
100.00%
Electronics and electrical appliances

Production and transmission of energy
Paper and allied
Surgical and metal
Contractors
Sports goods
Food industries
Construction
Containers and ports
Engineering
Glass and allied
Hotels
Infrastructure
Media
99

2012
Gross advances
Deposits
Contingencies and
commitments
(Rupees in 000)
(Rupees in 000)
Percent
(Rupees in 000)
Percent
6,436,929
1.57%
15,784,908
2.25%
4,054,798
0.79%
Agri business
63,412,533
13.40%
37,837,882
5.41%
75,359
0.01%
Textile spinning
16,023,464
3.92%
1,754,995
0.25%
13,478,641
2.62%
Textile weaving
6,264,208
1.53%
2,632,554
0.38%
5,505,733
1.07%
Textile composite
21,485,938
5.25%
2,923,552
0.42%
98,404
0.02%
Textile others
15,983,229
3.91%
2,048,785
0.29%
2,342,064
0.46%
Cement
2,393,256
0.59%
2,916,842
0.42%
571,719
0.11%
Sugar
3,427,465
2.94%
5,347,923
0.76%
536,224
0.10%
2,141,611
0.52%
3,903,157
0.56%
388,343
0.08%
6,134,194
1.50%
6,265,499
0.90%
2,629,068
0.51%
Financial
9,310,324
2.28%
11,569,758
1.87%
270,879,543
52.75%
0.00%
14,416,808
2.06%
24,413
0.00%
2,892,224
0.71%
2,644,787
0.38%
7,848,109
1.53%
56,734,730
13.87%
20,191,121
2.88%
38,220,380
7.44%
815,020
0.20%
990,948
0.14%
711,440
0.14%
Insurance
Paper and allied
Surgical and metal
Contractors
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
371,234
0.09%
2,052,536
0.29%
131,086
0.03%
8,943,375
2.19%
28,960,618
4.14%
24,567,559
4.78%
17,509,375
4.28%
41,656,054
5.95%
2,745,136
0.53%
4,437,555
1.08%
7,160,535
1.02%
1,755,309
0.34%
286,356
0.07%
1,926,353
0.28%
22,535
0.00%
12,739,862
3.11%
11,108,262
1.59%
4,589,076
0.89%
Airlines
7,557,066
1.85%
5,413,479
0.77%
186,170
0.04%
Cables
832,925
0.20%
79,424
0.01%
186,093
0.04%
Construction
16,563,478
4.05%
10,765,408
1.54%
7,401,252
1.44%
1,883,000
0.46%
762,599
0.11%
3,323,884
0.65%
Engineering
1,127,890
0.28%
2,093,081
0.30%
2,627,272
0.51%
131,094
0.03%
648,509
0.09%
21,028
0.00%
Glass and allied

Hotels
Infrastructure
Media
Polyester and fiber
Telecommunication
Individuals
Others
44.2.2
Percent
3,960,279
0.97%
3,610,021
0.52%
66,063
0.01%
638,644
0.16%
5,652,867
0.81%
0.00%
486,273
0.12%
594,501
0.08%
51,535
0.01%
4,514,939
1.10%
195,858
0.03%
364
0.00%
9,959,155
2.43%
10,557,710
1.51%
3,751,277
0.73%
47,552,654
11.62%
351,027,689
50.15%
4,793,544
0.93%
56,140,165
13.72%
82,934,674
11.84%
109,925,060
21.41%
409,090,444
100.00%
698,429,697
100.00%
513,508,481
100.00%
Segment by Sector
2013
Gross advances
Deposits
Contingencies and
commitments
(Rupees in 000)
Public / Government
Private
Percent
(Rupees in 000)
Percent
(Rupees in 000)
Percent
99,360,765
22.75%
54,085,422
6.53%
86,682,221
12.24%
337,388,317
77.25%
773,762,316
93.47%
621,509,340
87.76%
436,749,082
100.00%
827,847,738
100.00%
708,191,561
100.00%
2012
Gross advances
Deposits
Contingencies and
commitments
(Rupees in 000)
100
Percent
(Rupees in 000)
Percent
(Rupees in 000)
Percent
Public / Government
105,576,001
25.81%
54,372,750
7.77%
117,283,647
22.84%
Private
303,514,443
74.19%
644,056,947
92.23%
396,224,834
77.16%
409,090,444
100.00%
698,429,697
100.00%
513,508,481
100.00%
Annual Report 2013

44.2.3
Details of non performing advances and specific provisions by class of business segment
2013
2012
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
-------------------------------------- (Rupees in 000) ---------------------------------Chemical and pharmaceuticals
Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Sugar
Financial
Paper and allied
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Construction
Engineering
Glass and allied
Hotels
Polyester and fiber
Individuals
Others
44.2.4
259,484
1,098,563
4,139,842
854,368
5,891,133
3,047,785
157,837
228,623
226,896
2,083,465
183,833
3,955,581
418,260
1,834,356
75,324
63,960
862,616
3,964,091
3,124,714
367
485,993
2,355,095
13,668,112
3,649,761
52,630,059
259,484
879,874
4,079,091
788,253
4,692,948
2,926,837
52,067
221,434
180,736
1,725,930
183,833
3,570,269
395,321
1,660,644
68,567
63,960
805,516
3,623,960
974,242
367
485,993
2,284,036
11,373,889
2,799,488
44,096,739
312,746
1,313,254
5,499,634
1,126,543
5,710,107
3,640,690
160,424
242,670
264,702
2,231,888
201,492
6,480,916
397,813
1,667,571
72,148
126,960
989,530
4,085,882
550,061
4,205
485,993
2,362,823
14,698,530
4,720,414
57,346,996
256,259
954,821
4,961,322
877,388
4,409,573
3,072,455
41,956
242,670
191,313
1,629,271
201,492
3,079,402
305,470
1,483,440
67,811
126,960
884,938
3,323,093
524,271
4,205
145,826
2,106,295
11,548,661
3,024,918
43,463,810
Details of non performing advances and specific provision by sector

2013
2012
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
--------------------------------------- (Rupees in 000) --------------------------------Public / Government
Private
1,400,653
51,229,406
52,630,059
44,096,739
44,096,739
2,677,481
54,669,515
57,346,996
43,463,810
43,463,810
101

44.2.5
Geographical segment analysis

2013
Profit before
taxation
Total assets
employed
Net assets
employed
Contingencies
and
commitments
------------------------------------ (Rupees in 000) ----------------------------------Pakistan operations
22,907,240
776,332,633
66,646,369
475,839,112
Middle East
4,682,467
195,215
21,990
4,899,672
27,806,912
262,036,474
3,283,908
1,500,847
266,821,229
1,043,153,862
31,735,784
2,137,392
394,452
34,267,628
100,913,997
232,101,989
1,694
248,766
232,352,449
708,191,561
Profit before
taxation
Total assets
employed
Pakistan operations
23,246,916
708,870,778
61,565,294
373,701,299
Middle East
3,401,778
184,364
18,377
3,604,519
26,851,435
213,543,526
3,782,679
696,218
218,022,423
926,893,201
28,462,953
1,850,136
359,907
30,672,996
92,238,290
139,676,024
3,832
127,326
139,807,182
513,508,481
2012
Net assets
employed
Contingencies
and
commitments
------------------------------------ (Rupees in 000) -----------------------------------
Total assets employed include intra group items of Rs.33,415.211 million (2012: Rs.30,358.606 million).
44.3
Market Risk
Market risk is the risk that the fair value of a financial instrument will fluctuate due to movements in market prices. It results from
changes in interest rates, exchange rates and equity prices as well as from changes in the correlations between them. Each of
these components of market risk consists of a general market risk and a specific market risk that is driven by the nature and
composition of the portfolio.
Measuring and controlling market risk is usually carried out at a portfolio level. However, certain controls are applied, where
necessary, to individual risk types, to particular books and to specific exposures. Controls are also applied to prevent any undue
risk concentrations in trading books, taking into account variations in price, volatility, market depth and liquidity. These controls
include limits on exposure to individual market risk variables as well as limits on concentrations of tenors and issuers.
Trading activities are centered in the Treasury and Capital Markets Group which facilitates clients and also runs proprietary
positions. The Bank is active in the cash and derivative markets for equity, interest rate and foreign exchange.
The Market and Treasury Risk division performs market risk management activities. Within this division, the Market Risk
Management unit is responsible for the development and review of market risk policies and processes, and is involved in research,
financial modeling and testing / implementation of risk management systems, while Treasury Middle Office is responsible for
implementation and monitoring of market risk and other policies, escalation of deviations to senior management, and MIS reporting.
The functions of the Market Risk Management unit are as follows:
102
To keep the market risk exposure within the Banks risk appetite as assigned by the BoD and the BRMC.
To develop, review and upgrade procedures for the effective implementation of market risk management policies approved
by the BoD and BRMC.
Annual Report 2013

44.3.1
To review new product proposals and propose / recommend / approve procedures for the management of their market risk.
Various limits are assigned to different businesses on a product/portfolio basis. The products are approved through product
programs, where risks are identified and limits and parameters are set. Any transactions / products falling outside these
product programs are approved through separate transaction / product memos.
To maintain a comprehensive database for performing risk analysis, stress testing and scenario analysis. Stress testing
activities are performed on a quarterly basis on both the Banking and Trading books.
Foreign Exchange Risk
2013
Assets
Off - balance
Net currency
sheet items
exposure
------------------------------------------ (Rupees in 000) --------------------------------------Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahraini Dinar
Qatari Riyal
Other Currencies
731,786,850
132,156,718
1,331,587
92,420
1,985,245
82,894,185
13,173,637
17,887,202
28,430,807
1,009,738,651
Liabilities
607,709,956
83,416,585
12,610,648
7,681
7,716,610
125,322,133
19,452,215
24,690,385
27,898,441
908,824,654
(24,350,954)
(49,219,121)
11,653,201
(73,527)
5,757,308
42,858,583
6,004,329
6,741,932
628,249
-
99,725,940
(478,988)
374,140
11,212
25,943
430,635
(274,249)
(61,251)
1,160,615
100,913,997
2012
Assets
Off - balance
Net currency
sheet items
exposure
------------------------------------------ (Rupees in 000) --------------------------------------Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahraini Dinar
Qatari Riyal
Other Currencies
709,789,544
74,957,934
2,784,651
28,985
2,370,763
65,799,339
10,596,389
10,103,904
20,103,086
896,534,595
Liabilities
601,898,252
58,019,573
10,582,621
8,641
5,803,173
80,477,565
16,424,191
11,665,772
19,416,517
804,296,305
(16,752,154)
(16,581,683)
7,745,156
(55,545)
3,414,984
14,074,639
5,828,363
2,622,384
(296,144)
-
91,139,138
356,678
(52,814)
(35,201)
(17,426)
(603,587)
561
1,060,516
390,425
92,238,290
Foreign Exchange Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign exchange
rates. Exposures are monitored by currency to ensure that they remain within the established limits for each currency. Exposures
are also monitored on an overall basis to ensure compliance with the Banks SBP approved Foreign Exchange Exposure Limit.
The Bank is an active participant in the cash and derivatives markets for currencies and carries currency risk from these trading
activities, conducted primarily by the Treasury and Capital Markets Group (TCM). These trading exposures are monitored through
prescribed stress tests and sensitivity analyses.
The Banks reporting currency is the Pakistan Rupee, but its assets, liabilities, income and expenses are denominated in multiple
currencies. From time to time, TCM proactively hedges foreign currency exposures resulting from its market making activities,
subject to pre-defined limits.
44.3.2
Equity position risk

Equity position risk is the risk that the fair value of a financial instrument will fluctuate due to changes in the prices of individual
stocks or the levels of equity indices. The Banks equity book comprises of held for trading (HFT) and available for sale (AFS)
portfolios. The objective of the HFT portfolio is to make short-term capital gains, whilst the AFS portfolio is maintained with a
medium term view of earning both capital gains and dividend income. Product program manuals have been developed to provide
guidelines on the objectives and policies, risks and mitigants, limits and controls for the equity portfolios of the Bank.
103
104
Annual Report 2013
44.3.4
44.3.3
105,528,811
Total Yield / Interest Rate Risk Sensitivity Gap
Cumulative Yield / Interest Rate Risk Sensitivity Gap
35,040,412
5,723,576
(5,723,576)
10,550,240
(10,550,240)
207,539,873
(172,499,461)
Off-balance sheet Gap
Interest Rate Derivatives - Long position

Interest Rate Derivatives - Short position
Cross Currency Swap - Long position
Cross Currency Swap - Short Position
FX Options - Long position
FX Options - Short position
Forward Sale of Government Securities
Foreign currency forward purchases
Foreign currency forward sales
Off-balance sheet financial instruments
100,913,997
Total net assets
(265,126,329)
(265,126,329)
3,769,994
87,718,457
(83,948,463)
15,676,692
358,919,249
374,595,941
(268,896,323)
25,707,305
105,699,618
382,280,142
8,533,320
17,700,898
975,514,947
16,590,884
40,573,874
827,847,738
665,328
19,348,724
905,026,548
70,488,399
7,145,518
13,281,654
14,940,512
44,624,629
88,520,725
25,867,497
28,835,115
423,777,250
Upto 1 month
50,645,974
315,772,303
28,397,244
2,085,405
(3,146,655)
6,114,000
(6,114,000)
78,395,959
(48,937,465)
14,414,099
60,931,476
665,328
76,010,903
287,375,059
209,795,939
363,385,962
2,410,963
151,179,060
Over 1 month
to 3 months
144,647,258
94,001,284
1,484,513
245,757
(245,757)
4,436,240
(4,436,240)
41,051,698
(39,567,185)
4,809,219
30,454,810
35,264,029
92,516,771
70,452,004
127,780,800
5,444,549
51,884,247
Over 3 months
to 6 months
152,293,231
7,645,973
327,411
373,759
(46,348)
1,642,946
27,477,483
29,120,429
7,318,562
23,535,290
36,438,991
4,443,007
8,460,694
174,582,858
22,289,627
720,836
8,490,581
9,211,417
22,289,627
6,369,885
31,501,044
1,585,137
23,546,022
226,027,884
51,445,026
986,492
7,067,316
8,053,808
51,445,026
17,923,445
59,498,834
41,575,389
2013
Exposed to yield / interest rate risk
Over 6 months
Over 1 year
Over 2 years
to 1 year
to 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10
years
258,565,518
32,537,634
1,061,250
2,156,008
(1,094,758)
-
1,012,085
11,969,162
12,981,247
31,476,384
11,758,231
44,457,631
32,699,400
279,298,553
20,733,035
1,236,406
(1,236,406)
-
855,497
24,284,870
25,140,367
20,733,035
6,590,875
45,873,402
39,282,527
289,253,280
9,954,727
2,959,605
2,959,605
9,954,727
10,147,168
12,914,332
2,767,164
105,528,811
(183,724,469)
16,590,884
456,008
295,293,186
19,348,724
331,688,802
(183,724,469)
8,533,320
17,700,898
147,964,333
81,375,207
12,585,843
10,947
27,758,118
Non-interest
bearing
financial
instruments
------------------------------------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------------------------------------
Total
30,425,598
0%
7.85%
3.86%
10.85%
0%
0%
0.01%
0.58%
4.28%
9.67%
9.27%
Effective yield /
interest rate
%
Net non financial assets
On-balance sheet gap
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Assets
Investments
Advances
Performing
Non-performing
Other assets
On-balance sheet financial instruments
Mismatch of interest rate sensitive assets and liabilities
Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress testing and taking appropriate actions where required.
Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates, including changes in the shape of yield curves. Interest rate risk is inherent in many of the Banks businesses and arises from mismatches between
the contractual maturities or the re-pricing of on and off balance sheet assets and liabilities. The interest rate sensitivity profile is prepared on a quarterly basis based on the re-pricing or contractual maturities of assets and liabilities.
Yield / interest rate risk
105
28,847,136
87,828,267
8,059,417
(8,059,417)
12,490,616
(12,490,616)
37,234
(37,234)
(308,867)
119,658,061
(90,502,058)

92,238,290
Total net assets
(198,685,303)
(198,685,303)
14,687,119
1,000,000
66,822,438
(53,135,319)
45,550,509
276,549,802
322,100,311
(213,377,119)
68,896,796
108,723,192
350,500,822
13,862,980
16,592,201
861,895,415
7,600,633
68,720,266
698,429,697
9,319,264
17,538,995
801,608,855
60,286,560
7,678,267
9,332,780
9,560,360
13,254,989
94,161,446
15,234,326
21,953,458
349,590,182
31,951,730
0%
10.46%
4.33%
11.91%
0%
0%
0.01%
1.15%
4.47%
10.64%
11.28%
Upto 1 month
Over 1 month
to 3 months
Over 3 months
to 6 months
2012
Over 6 months
Over 1 year
Over 2 years
to 1 year
to 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
(60,390,254)
138,295,049
11,863,202
8,072,150
(8,072,150)
38,986,790
(27,123,588)
15,672,056
47,316,944
9,319,264
72,308,264
126,420,107
170,356,400
198,728,371
3,965,289
24,406,682
(12,095,182)
48,295,072
263,064
2,444,083
(4,615,333)
4,418,466
(4,418,466)
37,234
(37,234)
12,599,533
(10,165,219)
1,373,975
66,793,711
68,167,686
48,018,805
44,906,427
116,186,491
4,610,064
66,670,000
89,163,093
101,258,275
1,171,368
1,000,000
(1,000,000)
1,249,300
(77,932)
1,202,386
29,676,498
30,878,884
100,051,274
17,404,996
130,930,158
2,658,245
110,866,917
106,195,861
17,032,768
3,665,820
3,665,820
16,792,288
9,647,954
20,458,108
291,449
10,518,705
129,093,199
22,897,338
3,735,711
3,735,711
22,697,562
10,997,012
26,433,273
15,436,261
186,214,260
57,121,061
291,449
(291,449)
-
1,371,554
4,515,096
5,886,650
56,644,127
13,734,893
62,530,777
48,795,884
203,754,643
17,540,383
862,383
3,323,885
(2,152,635)
(308,867)
-
3,549,786
16,056,911
19,606,697
16,678,000
7,159,346
36,284,697
29,125,351
215,009,471
11,254,828
1,556
1,556
10,012,202
7,396,998
10,013,758
2,616,760
87,828,267
(127,181,204)
7,600,633
250,117,648
17,538,995
275,257,276
(123,650,686)
13,862,980
16,592,201
151,606,590
86,483,179
5,901,546
868,051
27,898,633
Non-interest
bearing
financial
instruments
------------------------------------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------------------------------------
Total
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Assets
Investments
Advances
Performing
Non-performing
Other assets
Effective yield /
interest rate
%
106
Annual Report 2013
44.4.1
44.4
Represented by:
Share capital
Reserves
Net assets
Liabilities
Bills payable
Borrowings
Subordinated loan
Deferred tax liability
Other liabilities
Assets
Investments
Advances - Performing
- Non-performing
Deferred tax assets
Other assets
12,241,798
33,681,210
42,634,545
12,356,444
100,913,997
16,590,884
40,573,874
827,847,738
665,328
1,087,240
22,059,590
908,824,654
100,913,997
88,520,725
25,867,497
28,835,115
423,777,250
382,280,142
8,533,320
24,607,937
27,316,665
1,009,738,651
Total
6,186,350
20,615,958
132,205,363
5,014,564
164,022,235
50,228,720
46,353,443
25,378,233
14,227,283
45,126,610
76,862,334
53,240
6,249,812
214,250,955
Upto 1
month
4,218,618
11,985,298
84,293,599
332,664
3,086,620
103,916,799
147,863,541
1,399,168
326,176
1,657,212
144,476,768
95,308,481
133,314
8,479,221
251,780,340
4,134,414
3,446,897
68,189,612
1,279,769
77,050,692
15,077,058
1,371,240
163,088
5,717,625
46,202,904
36,905,981
221,602
1,545,310
92,127,750
2,051,502
1,326,972
67,409,041
332,664
271,810
1,443,721
72,835,710
(3,785,555)
1,985,046
3,480,636
27,426,149
28,250,293
377,918
7,530,113
69,050,155
720,836
46,955,545
271,810
1,110,321
49,058,512
(9,139,019)
2,761,460
1,872,311
23,140,643
10,768,516
892,479
484,084
39,919,493
610,332
38,031,506
271,810
501,008
39,414,656
38,376,432
2,118,942
168,021
52,850,962
21,496,633
893,848
262,682
77,791,088
1,012,085
49,430,334
271,810
683,308
51,397,537
57,854,213
3,360,158
863,329
36,086,777
64,298,793
3,434,741
1,207,952
109,251,750
855,496
95,529,668
2,489,242
98,874,406
(10,038,951)
6,757,328
848,698
37,502,650
40,959,821
1,991,340
775,618
88,835,455
245,803,070
6,451,037
252,254,107
(185,522,442)
22,413,940
10,963,787
7,429,290
8,533,320
16,609,455
781,873
66,731,665
2013
Over 1
Over 3
Over 6
Over 1
Over 2
Over 3
Over 5
Over 10
month to 3
months to
months to
year to 2
years to 3
years to 5
years to
years
months
6 months
1 year
years
years
years
10 years
------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------
Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using
an Exponentially Weighted Moving Average model based on data for the last seven years. The maturity profile of certain non-contractual assets and liabilities which are related to specific
assets and liabilities follows the maturity profile of the underlying asset or liability. The maturity profile of other non-contractual assets and liabilities is expected to follow historical patterns
of behavior. The methodology and the assumptions used to derive the maturity profile of non-contractual assets and liabilities have been approved by ALCO.
Maturities of assets and liabilities - based on working prepared by the Assets and Liabilities Management Committee (ALCO) of the Bank
The Banks approach to liquidity management is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed
conditions, without incurring unacceptable losses or risking sustained damage to business franchises. A centralized approach is adopted, based on an integrated framework incorporating
an assessment of all material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The framework entails careful
monitoring and control of the daily liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed market conditions, including
general market crises and the possibility that access to markets could be impacted by a stress event affecting some part of the Banks business.
The Assets and Liability Management Committee (ALCO) of the Bank is responsible for the oversight of liquidity management and meets on a monthly basis or more frequently, if required.
Liquidity risk is the risk that the Bank may be unable to meet its obligations or to fund increases in assets as they fall due without incurring unacceptable cost or losses.
Liquidity risk
107
Represented by:
Share capital
Reserves
Net assets
Liabilities
Bills payable
Borrowings
Subordinated loan
Other liabilities
Assets
Investments
- Non-performing
Deferred tax assets
Other assets
12,241,798
29,044,219
37,415,599
13,536,674
92,238,290
7,600,633
68,720,266
698,429,697
9,319,264
856,528
19,369,917
804,296,305
92,238,290
94,161,446
15,234,326
21,953,458
349,590,182
350,500,822
13,862,980
24,431,069
26,800,312
896,534,595
Total
2,686,303
45,724,548
104,964,536
5,248,530
158,623,917
(8,691,676)
44,588,450
15,234,326
10,457,978
9,108,767
66,836,808
115,690
5,185,395
151,527,414
Upto 1 month
Over 1 month
to 3 months
1,777,680
10,307,277
78,402,134
2,333,268
1,730,498
94,550,857
31,039,372
1,839,196
4,072,539
19,992,107
94,200,314
261,742
5,224,331
125,590,229
1,733,605
6,764,183
51,243,330
851,451
60,592,569
35,177,176
1,787,171
1,876,956
52,591,389
33,888,199
410,286
5,215,744
95,769,745
1,403,045
1,453,885
47,507,635
333,868
453,222
1,285,168
52,436,823
111,180,570
2,597,694
2,362,578
127,380,627
23,688,147
201,613
6,835,455
163,066,114
344,291
40,912,786
667,728
(222,750)
638,154
42,340,209
1,516,699
3,584,393
2,015,356
21,787,647
15,109,357
776,065
584,090
43,856,908
493,639
31,639,622
2,400
313,028
453,414
32,902,103
2,429,045
2,763,819
300,000
20,105,452
11,056,364
762,779
342,734
35,331,148
1,350,243
47,031,485
4,800
313,028
907,610
49,607,166
66,555,830
4,394,916
50,940,751
56,526,025
3,029,062
1,272,242
116,162,996
2,282,200
94,966,619
5,977,200
2,589,397
105,815,416
(17,483,891)
8,053,205
30,970,097
46,232,261
2,123,639
925,044
88,304,246
201,761,550
5,665,695
207,427,245
(130,559,299)
24,552,602
868,051
16,713,345
2,963,347
13,862,980
16,750,193
1,215,277
76,925,795
2012
Over 2 years
Over 3 years
Over 5 years
Over
Over 3
Over 6
Over 1 year
months to 6
months to 1
to 2 years
to 3 years
to 5 years
to 10 years
10 years
months
year
------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------
108
Annual Report 2013
44.4.2
Represented by:
Share capital
Reserves
Net assets
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Assets
Investments
Advances
Other assets
12,241,798
33,681,210
42,634,545
12,356,444
100,913,997
16,590,884
40,573,874
827,847,738
665,328
1,087,240
22,059,590
908,824,654
100,913,997
88,520,725
25,867,497
28,835,115
423,777,250
390,813,462
24,607,937
27,316,665
1,009,738,651
Total
16,590,884
20,615,958
622,114,850
1,087,240
17,030,741
677,439,673
(391,127,165)
88,520,725
25,378,235
14,227,283
61,425,367
76,862,334
53,240
19,845,324
286,312,508
Upto 1
month
11,985,298
64,953,590
332,664
341,878
77,613,430
169,917,490
326,176
1,657,212
144,158,835
95,308,481
133,314
5,946,902
247,530,920
3,446,897
49,235,633
334,739
53,017,269
37,080,707
163,086
5,717,625
46,202,903
36,905,981
221,602
886,779
90,097,976
1,326,972
39,970,718
332,664
814,516
42,444,870
1,280,095
3,480,636
11,445,324
28,250,293
377,918
170,794
43,724,965
720,836
8,785,242
442,444
9,948,522
27,049,935
1,872,311
23,140,643
10,768,516
892,479
324,508
36,998,457
610,332
8,541,742
9,152,074
66,322,495
168,021
52,850,962
21,496,633
893,848
65,105
75,474,569
1,012,085
10,343,110
11,355,195
93,405,698
863,329
36,086,777
64,298,793
3,434,741
77,253
104,760,893
855,496
23,902,753
625,532
25,383,781
55,882,086
848,698
37,502,650
40,959,821
1,954,698
81,265,867
100
2,469,740
2,469,840
41,102,656
10,963,789
15,962,610
16,646,097
43,572,496
2013
Over 3
Over 5
Over 10 years
Over 6
Over 1 year
Over 2
Over 1
Over 3
years to 10
years to 5
month to 3
months to 6
months to 1
to 2 years
years to 3
years
year
years
years
months
months
------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------
The maturity profile presented below has been prepared as required by IAS on the basis of contractual maturities, except for products that do not have a contractual maturity which are shown in the first bucket.
Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Bank
109
Represented by:
Share capital
Reserves
Net assets
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Assets
Investments
Advances
Other assets
12,241,798
29,044,219
37,415,599
13,536,674
92,238,290
92,238,290
7,600,633
68,720,266
698,429,697
9,319,264
856,528
19,369,917
804,296,305
94,161,446
15,234,326
21,953,458
349,590,182
364,363,802
24,431,069
26,800,312
896,534,595
Total
(345,681,635)
7,600,633
45,724,548
532,492,406
856,528
13,925,345
600,599,460
94,161,446
15,234,326
10,457,978
16,101,184
94,305,072
115,690
24,542,129
254,917,825
Upto 1
month
15,672,199
10,307,277
61,902,473
2,333,268
924,314
75,467,332
4,072,539
19,493,818
66,732,050
261,742
579,382
91,139,531
47,150,972
7,055,632
34,688,260
58,787
41,802,679
1,876,956
52,591,389
33,888,199
410,286
186,821
88,953,651
121,265,412
1,162,436
24,433,228
333,868
645,484
26,575,016
2,362,578
120,886,498
23,688,147
201,613
701,592
147,840,428
30,693,830
344,291
8,384,954
667,728
24,838
9,421,811
2,015,356
21,787,647
15,109,357
776,065
427,216
40,115,641
25,280,975
493,639
6,664,369
2,400
7,160,408
300,000
20,105,453
11,056,364
762,779
216,787
32,441,383
101,675,942
1,350,243
7,402,008
4,800
209,230
8,966,281
50,940,751
56,526,025
3,029,062
146,385
110,642,223
47,281,044
2,282,200
22,461,999
5,977,200
1,323,554
32,044,953
30,970,097
46,232,261
2,123,639
79,325,997
48,899,551
2,258,365
2,258,365
868,051
16,713,345
16,826,327
16,750,193
51,157,916
2012
Over 1
Over 3
Over 6
Over 1 year
Over 2
Over 3
Over 5
Over 10 years
month to 3
months to 6
months to 1
to 2 years
years to 3
years to 5
years to 10
months
months
year
years
years
years
------------------------------------------------------------------------------------ (Rupees in 000) ------------------------------------------------------------------------------------

44.5
Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
The Operational Risk & Basel II Division is primarily responsible for the oversight of operational risk management across the Bank. The operational
risk management framework of the Bank is governed by the Operational Risk Management Policy and Procedures, while the implementation is
supported by an operational risk management system and designated operational risk coordinators within different units across the bank. The
framework is in line with international best practices, flexible enough to implement in stages and permits the overall approach to evolve in response
to organizational learning and future requirements.
Loss data, collected through a well defined program, is evaluated and processes are reviewed for improvements in mitigation techniques. Periodic
workshops are conducted for Risk & Control Self Assessment and key risk exposures are identified and assessed against existing controls to
evaluate improvement opportunities. Key Risk Indicators are also defined for monitoring of risk exposures.
Business Continuity Plans have been implemented across the bank, clearly defining the roles and responsibilities of respective stakeholders, and
covering recovery strategy, IT and structural backups, scenario and impact analyses and testing directives. The outsourcing policy has also been
augmented to address risks associated with such arrangements.
45.
ISLAMIC BANKING BUSINESS

The Bank operates 22 (2012: 19) Islamic Banking Branches and 15 (2012: 15) Islamic Banking windows.
The statement of financial position of the Banks Islamic Banking Branches as at December 31, 2013 is as follows:
Note
ASSETS
Investments
Islamic financing and related assets
Due from Head Office
Other assets
Total Assets
LIABILITIES
Bills payable
Due to financial institutions
Current accounts
Saving accounts
Term deposits
Deposits from financial institutions - remunerative
Due to Head Office
Other liabilities
NET ASSETS
REPRESENTED BY
Islamic Banking Fund
Accumulated losses
110
Annual Report 2013
45.1
2013
2012
--------------- (Rupees in 000) ----------------
951,157
1,701,743
7,363,524
5,183,080
117,974
2,144,911
153,963
17,616,352
748,333
1,293,290
8,036,026
3,118,266
100,250
173,481
13,469,646
54,532
-
960
-
2,328,416
2,490,262
1,994,823
9,980,829
16,794,330
191,564
17,040,426
575,926
1,863,420
2,533,628
3,141,108
4,956,027
12,494,183
272,971
162,915
12,931,029
538,617
681,000
(156,679)
524,321
51,605
575,926
681,000
(194,579)
486,421
52,196
538,617

The profit and loss account of the Banks Islamic Banking branches for the year ended December 31, 2013 is as follows:
2013
2012
----------- (Rupees in 000) ----------Return earned
Return expensed

Reversal for diminution in value of investments - net
(Reversal) / Charge against assets given on Ijarah
Net return after provisions
Other Income
Dividend income
Other income
Total other income
Other Expenses
Total other expenses
Net profit for the year
Accumulated losses brought forward
Accumulated losses carried forward
Remuneration to Shariah Advisor

45.1

Financings
Murabaha
Ijarah
Musharaka
Diminishing Musharaka
Salam
Provision against financings
Advances
Advances and receivables against Ijarah
Advances for Murabaha
Provision against advances for Murabaha
Profit receivable against financings
45.2
Charity Fund
Opening balance
Payments during the year
Closing balance
1,511,101
895,282
615,819
1,266,785
865,577
401,208
1,525
(1,438)
(3,602)
(3,515)
619,334
7,880
(37,216)
12,626
(16,710)
417,918
14,913
20,187
7,291
9,021
8,584
59,996
679,330
12,124
60,432
34,504
860
14,906
122,826
540,744
638,933
2,497
641,430
37,900
516,659
19,006
535,665
5,079
(194,579)
(156,679)
(199,658)
(194,579)
1,045
2,329
3,232,150
867,257
687,448
281,040
(31,389)
5,036,506
1,394,021
982,463
55,556
192,924
347,171
(29,864)
2,942,271
143,753
17,498
(17,498)
143,753
2,821
5,183,080
171,780
17,531
(17,498)
171,813
4,182
3,118,266
6,476
262
(6,400)
338
8,967
959
(3,450)
6,476
111

45.3
Disclosures for profit and loss distribution and pool management

During 2013, UBL Ameen (the Mudarib) maintained two pools which accept deposits on the basis of Mudaraba from depositors
(Rabbulmaal). Pool funds are invested in Islamic modes of financing and investments. The profit earned on the pool is therefore
susceptible to the same market and credit risks as discussed in note 44 to the financial statements.
Ameen Daily Munafa Account (ADMA) Pool
The ADMA pool consists of deposits for the ADMA product. The net return on the pool is arrived at after deduction of direct costs
from the gross return earned on the pool. From the net return, profit is paid to the Mudarib in the ratio of the Mudaribs equity in the
pool to the total pool. The balance represents the distributable profit.
General Pool
The General pool consists of all other remunerative deposits. The net return on the pool is arrived at after deduction of direct costs
from the gross return earned on the pool. Currently, the entire net return is considered as distributable profit without paying any
profit to the Mudarib on its equity.
For both pools, the Mudaribs share is deducted from the distributable profit to calculate the profit to be allocated to depositors. The
allocation of the profit to various deposit categories is determined by the amount invested in that category relative to the total pool,
as well as by the weightage assigned to the various deposit categories.
The Mudaribs share for the year ended December 31, 2013 is Rs. 602 million (50% of distributable profit). Of this, an amount of
Rs. 293 million (49% of Mudarib share) was distributed back to depositors as Hiba. The rate of profit earned on average earning
assets was 9.7% per annum and the rate of profit paid on average deposits was 6.9% per annum.
45.4
Deployment of Mudaraba based deposits by class of business

Agri business
Textile
Sugar
Automobile
Financial
Food industries
Engineering
Glass and allied
Hotel
Plastic
Individuals
Production and Transmission of energy
Government of Pakistan Sukuks
Others
46.
2013
2012
----------- (Rupees in 000) ----------83,936
3,018,759
300,663
96,110
9,390
311,632
192,305
434,348
522,134
21,714
84,665
198,651
459,089
6,538,358
274,850
12,546,604
349,539
963,200
366,141
124,311
3,641
425,264
359,480
379,302
274,667
24,802
67,560
173,323
41,667
7,398,943
202,452
11,154,292
NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors in its meeting held on February 19, 2014 has proposed a cash dividend in respect of 2013 of
Rs. 4.00 per share (2012: Rs. 3.50 per share). In addition, the Directors have also announced a bonus issue of nil (2012: nil).
These appropriations will be approved in the forthcoming Annual General Meeting. The unconsolidated financial statements for the
year ended December 31, 2013 do not include the effect of these appropriations which will be accounted for in the unconsolidated
financial statements for the year ending December 31, 2014.
112
Annual Report 2013

47.
DATE OF AUTHORIZATION
These financial statements were authorized for issue on February 19, 2014 by the Board of Directors of the Bank.
48.
GENERAL
48.1
Comparatives
Comparative information has been reclassified, rearranged or additionally incorporated in these unconsolidated financial
statements for the purposes of better presentation. Major reclassifications made are as follows:
48.2
Rs. 1,505 million has been reclassified from deposits and other accounts to borrowings.
Rs. 583 million has been reclassified from other assets to other liabilities.
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
Atif R. Bokhari
President &
Amin Uddin
Director
Seerat Asghar
Director

Chairman
113
Annexure A as referred to in note 9.11 of the Banks

1)
Particulars of investments held in listed companies and Modarbas
Investee
Number of
shares /
certificates
held
Paid up value
per share /
certificate
(Rupees)
Total paid up
value
Cost
--------------(Rupees in 000)---------------

Investments in ordinary shares
Attock Refinery Limited
Bank Al Falah Limited
D.G. Khan Cement
FFC Jordan-Bin Qasim
MCB Bank Limited
350,400
200,000
500,000
100,000
665,900
10.00
10.00
10.00
10.00
10.00
3,504
2,000
5,000
1,000
6,659
72,989
5,486
43,192
4,510
191,756
317,933

Agritech Limited
Aisha Steel Mills Limited
DP World
Engro Foods Limited
Engro Corporation Limited
Fatima Fertilizer Company Limited
Fauji Fertilizer Bin Qasim Limited
Fauji Fertilizer Company Limited
Hub Power Company Limited
Kot Addu Power Company Limited
MCB Bank Limited
Maple Leaf Cement
National Refinery Limited
Nishat Chunian Power Limited
Pakgen Power Limited
Pak Oilfields Limited
Pakistan Telecommunication Company Limited
Shell Pakistan Limited
14,087,108
5,104,000
21,000,000
6,926
3,500,000
4,250,000
22,400,000
45,400,000
17,500,000
33,228,500
83,300,500
982,100
18,369,500
200,000
26,798,500
6,428,000
580,100
22,450,000
705,000
10.00
10.00
10.00
2,106.49
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
140,871
51,040
210,000
14,590
35,000
42,500
224,000
454,000
175,000
332,285
833,005
9,821
183,695
2,000
267,985
64,280
5,801
224,500
7,050
493,049
55,362
481,790
18,968
359,776
568,267
569,358
1,803,141
1,981,068
1,547,277
3,868,783
280,441
439,560
43,735
460,629
157,910
279,771
617,037
131,287
14,157,209
Investments in preference shares

Masood Textile Mills Limited
Silk Bank Limited
JSC Alliance Bank
7,333,334
10,000,000
95,720
10.00
10.00
4,786.53
73,333
100,000
338,312
73,333
25,000
338,312
436,645
114
Annual Report 2013

2)
Particulars of investments held in unlisted companies
Investee
Percentage of
holding
(%)
Number of
shares /
certificates
held
Breakup-up
value per
share
Paid up
value per
share
Cost
Rupees
Rupees
(Rupees in 000)
Based on
audited
accounts
as at
Name of Chief
Executive
Maj. Gen. M. Tauqeer

Ahmad Khan
Shareholding more than 10%

Pakistan Agricultural Storage &
Services Corporation Limited
18.3%
5,500
(127,104)
1,000
5,500
31-Mar-13
World Bridge Connect Inc.
18.1%
1,979,295
77,606
Cinepax Limited
14.6%
5,037,200
10
50,372
30-Jun-12
Arif Baigmohamed
First Women Bank Limited
5.2%
7,698,441
13
10
21,100
31-Dec-12
Shafqat Sultana
National Institutional Facilitation

Technologies (Pvt.) Limited
8.6%
1,406,835
62
10
1,527
30-Jun-13
M. M. Khan
National Investment Trust Limited
8.3%
79,200
22,519
100
100
30-Jun-13
Manzoor Ahmed
News-VIS Credit Information Services

(Pvt.) Limited
4.7%
32,500
(2)
10
325
30-Jun-13
Faheem Ahmad
Techlogix International Limited
4.4%
4,455,829
50,702
31-Dec-11
Salman Akhtar &

Kewan Khawaja
(Co-Chief Executive)
377,800
3,778
Not available
Shareholding upto 10%
Kay Textile Mills Limited
Not available
Not available Not available
SME Bank Limited
1.7%
3,975,003
10
26,950
31-Dec-12
Naseer Durrani
SWIFT
0.0%
25
330,036
18,134
2,905
31-Dec-12
Gottfried Leibbrandt
MasterCard Incorporated
0.0%
461
5,911
31-Dec-12
Ajay Banga
The Benefit Company B.S.C
0.4%
216
146,848
27,938
2,235
31-Dec-12
Abdul Wahid Janahi
243,100
115

3) Particulars of bonds
Investee
Terms of Redemption
Principal
Interest / Profit
Rate of Interest / Profit
Outstanding
Amount
(Rupees in 000)
116

Government of Pakistan Ijarah Sukuk - VII
Government of Pakistan Ijarah Sukuk - IX
Government of Pakistan Ijarah Sukuk - XI
Government of Pakistan Ijarah Sukuk - XIV
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Cut off yield of 6M T-Bills plus 0 bps

Cut off yield of 6M T-Bills minus 30 bps
1,001,752
2,785,000
500,000
1,900,000
6,186,752
Government of Pakistan - Eurobonds

Islamic Republic of Pakistan - 2016 - Eurobond
At Maturity
At Maturity
Bi-annually
Bi-annually
7.125%
6.875%
2,113,833
8,821,093
10,934,926

Angol 2019 USD
Government of Dubai 2020
EGYPT 2020
Kingdom of Bahrain 2020
Kingdom of Jordan
Republic of Ghana 2017
Republic of SRILANKA 2020
Republic of SRILANKA 2022
State of Qatar 2030
United Republic of Tanzania
Venezuela 2016
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
7.000%
7.750%
6.700%
6.450%
5.750%
5.500%
6.392%
8.500%
6.250%
5.875%
9.750%
6.392%
5.750%
416,349
2,513,861
437,694
1,566,922
633,604
1,135,104
735,863
309,815
790,774
624,469
2,766,876
1,144,942
311,964
13,388,237

Bank of Bahrain and Kuwait 2015
Bank of Ceylon 2017
CBQ Finance 2019
Dar Al Arkaan 2015
DEWA - 2016
DEWA - 2018
DEWA - 2020
EMAAR 2019
EMIRAT
IPIC GMTN 2022
JAFZA 2019
MAF Global 2019
Qatari Diar QSC 2020
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
4.500%
6.875%
7.500%
10.750%
6.375%
3.000%
7.375%
6.400%
3.875%
5.500%
7.000%
5.250%
5.000%
211,567
519,521
517,550
411,988
10,721
3,367,368
2,796,625
1,046,701
628,871
217,748
1,042,447
521,733
264,276
11,557,116
Annual Report 2013

3) Particulars of bonds (Contd.)
Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)

Government of Pakistan Sukuk - VII
At Maturity
Bi-annually

At Maturity
At Maturity
Bi-annually
Bi-annually
7.125%
6.875%
Monthly
Monthly
Nil
Monthly
K.S. Sulemanji - Diminishing Musharika

Sitara Energy Limited
Sitara Peroxide Limited
Pakistan International Airlines Limited
WAPDA Bonds - Sukuk II
WAPDA Bonds - Sukuk III
Quarterly
Bi-annually
Monthly
Bi-annually
At Maturity
At Maturity
Quarterly
Bi-annually
Monthly
Bi-annually
Bi-annually
Bi-annually
Nil
Deferred interest instalment
@ 1 month KIBOR
Avg. of 3 months KIBOR plus 140 bps
6 months KIBOR plus 1.15%
1 month KIBOR plus 1%
6 months KIBOR plus 1.75%
6 months KIBOR minus 25bps
6 months KIBOR plus 100bps
Foreign securities
JSC Alliance Bank - US $ Discount Bonds
JSC Alliance Bank - US $ Recovery Notes
At Maturity
At Maturity
Bi-annually
N/A
10.500%
N/A
Sukuks
Security Leasing Corporation
B.R.R Guardian Modaraba
300,000
300,000
821,172
4,460,321
5,281,493
23,261
80,937
54,447
31,704
234,759
890,000
34,089
425,000
1,774,197
228,454
324,639
553,093
4) Particulars of Debentures
Investee
Terms of Redemption
Principal
Interest / Profit
Rate of Interest
Outstanding
Amount
(Rupees in 000)
Private Sector
Effef Industries Limited
Khyber Textile Mills Limited
Morgah Valley Limited
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
11.00%
14.00%
14.00%
11.00%
14.00%
1,017
379
395
315
160
2,266
117

5) Particulars of investments in term finance certificates
Investee
No. of
Paid up value Total Paid up
Outstanding
Certificates held per certificate
value
Amount
(Rupees) ---------(Rupees in 000)-------------
Unlisted - available for sale

Azgard Nine Limited
Bank Al Habib Limited TFC III
Engro Fertilizers Limited
Faysal Bank Limited
Pakistan International Airlines Corporation TFC II
Name of Chief Executive
12,944
46,000
140,000
46,000
1,700
5,000
5,000
5,000
5,000
5,000
64,720
230,000
700,000
230,000
8,500
64,720
229,172
700,000
229,724
8,498
1,232,114
53,000
19,523
24,200
44,766
22,562
5,000
5,000
5,000
5,000
5,000
265,000
97,615
121,000
223,830
112,810
133,200
97,615
120,976
224,680
112,782
689,253
Unlisted - held to maturity

Pakistan International Airlines Corporation
Orix Leasing Pakistan Limited
Security Leasing Corporation Limited
Al-Azhar Textile Mills Limited
Bachani Sugar Mills Limited
Bentonite (Pakistan) Limited
Blue Star Spinning Mills Limited
Cast-N-Link Products Limited
Regency Textile Limited
Tharparkar Sugar Mills
Independent Media Corporation
Faysal Bank Limited
WAPDA
408,867
1,500
40,000
14
14
17
16
40
1
20,000
24,000
300,000
5,000
100,000
5,000
774,670
268,894
497,020
1,064,039
287,715
8,770,219
5,000
5,000
5,000
2,044,335
150,000
200,000
10,845
3,765
8,449
17,025
11,509
8,770
100,000
120,000
1,500,000
2,042,700
45,000
32,839
5,418
18,516
3,417
3,392
2,549
6,113
1,853
95,000
119,856
1,500,000
3,876,653
Muhammad Junaid Yunus

Teizoon Kisat
Mohammed Khalid Ali
Mirza Aurangzeb Baig
Noorul Amin Bachani
Khalid Shakeel
Ch. Ijaz Safdar
Nisar Ahmed
M. Iqtidar Pervaiz
Sajid H. Naqvi
Mir Ibrahim Rahman
Naved A. Khan
Syed Raghib Abbas
Listed - held to maturity

Allied Bank Limited TFC II
Azgard Nine
Bank Alfalah Limited
Standard Chartered Bank
129,397
12,297
48,600
75,000
5,000
5,000
5,000
5,000
646,985
61,485
243,000
375,000
490,082
61,115
242,951
375,000
1,169,148
Tariq Mahmood
Ahmed H. Shaikh
Atif Bajwa
Mohsin Ali Nathani
Listed - available for sale

Allied Bank Limited TFC-II
Azgard Nine Limited
Bank Al Falah Limited TFC III
Bank Al Habib Limited TFC II
Ahmed H. Shaikh
Abbas D. Habib
Muhammad Rohail
Naved A. Khan
Tariq Mahmood
Ahmed H. Shaikh
Atif Bajwa
Abbas D. Habib
Muhammad Rohail
6) Particulars of participation term certificates

Investee
No. of
Outstanding
value
Amount
(Rupees) ---------(Rupees in 000)-------------
Brother Steel Industries Limited

Zamrock Fibers Glass Limited
118
Annual Report 2013
17
16
12
362,000
29,250
32,833
6,154,000
468,000
394,000
2,144
437
2,358
4,939
Mian Yousuf Aziz

Air Marshal (Retd.) A. Rahim Khan
S. Zamir Syed

7)
Quality of investments classified as available for sale (AFS)
Investee
Investment in ordinary shares
Agritech Limited
Aisha Steel Mills
Bank Al-Falah Limited
Engro Foods Limited
MCB Bank Limited
Maple Leaf Cement Limited
DP World
Silk Bank Limited
JSC Alliance Bank
Investee
Market Value
(Rupees in 000)
Credit Rating
178,484
47,927
567,840
365,540
673,115
639,744
1,988,974
1,959,300
2,017,635
5,143,806
276,137
503,875
43,104
932,052
288,722
139,552
638,478
134,253
12,918
16,551,456
D
Not available
AANot available
A
A+
Not available
Not available
AA+
AA+
AAA
BB
AA+
A+
Not available
AA
Not available
Not available
Baa3
73,333
25,000
338,312
436,645
Not available
ACaa2
Cost
(Rupees in 000)
Credit Rating
5,500
50,372
77,606
Not available
Not available
Not available
21,100
1,527
26,950
3,778
50,702
2,905
100
325
0
2,235
243,100
ANot available
BBB
Not available
Not available
Not available
AM2Not available
Not available
Not available
Investment in unlisted shares

Pakistan Agricultural Storage & Services Corporation Limited
Cinepax Limited
National Institutional Facilitation Technologies (Pvt.) Limited
SME Bank Limited
SWIFT
News-VIS Credit Information Services (Pvt.) Limited
119

7)
Investee
Market Value
(Rupees in 000)

Government of Pakistan Islamic Bonds
Government of Pakistan Ijarah Sukuk
Government of Pakistan - Euro bond
Islamic Republic of Pakistan - 2016 - Euro Bond
Angol 2019 USD
EGYPT 2020
Kingdom of Jordan
Republic of Srilanka 2020
State of Qatar 2030
Venezuela 2016

Bank of Ceylon 2017
CBQ Finance 2019
Dar Al Arkaan 2015
DEWA 2016
DEWA 2018
EMAAR 2019
EMIRAT
IPIC GMTN 2022
JAFZA 2019
MAF Global 2019
DEWA 2020
120
Annual Report 2013
187,998,952
64,734,891
252,733,843
Credit Rating
Unrated - Govt Securities

6,238,358
6,238,358
Score7
2,197,099
9,651,571
11,848,670
Score7
Score7
422,045
681,200
2,589,191
472,449
1,582,108
1,110,714
752,139
294,102
754,266
580,910
2,710,059
1,144,426
287,326
13,380,935
Score5
Score6
Score2
Score2
Score2
Score4
Score5
Score5
Score6
Score6
Score3
Score6
Score7
501,553
219,397
520,960
397,655
11,713
3,367,780
1,071,084
628,918
202,646
1,065,537
524,217
2,885,750
288,754
11,685,964
Not available
BBB
A1
Not available
Baa3
Baa3
B1
BBB
Aa3
B+
Not available
Baa3
Aa2

7)
Quality of investments classified as available for sale (AFS) (Contd.)
Investee
Market Value
(Rupees in 000)
Credit Rating

Listed
Allied Bank Limited TFC-II
Azgard Nine Limited
Bank Al Falah Limited TFC
Unlisted
Azgard Nine Limited
Faysal Bank Limited
132,792
97,615
123,607
224,405
112,579
690,998
64,720
240,631
700,000
240,595
8,498
1,254,444
AA
D
AAAA
A-
D
AA
AAA
Not available
121
122
Annual Report 2013
Spinghar Textile Mills Ltd.

Plot # 33,54,57,58 & 59 Ind. Estate,
Hattar, Haripur, KP.
N. Khokhar Textile Industries (Pvt) Ltd.

117-Industrial Area, Street No. 9, I /10-3
Islamabad.
Amir Lajvardi
P.O. Box # 181843, Dubai, UAE
Quality Dyeing & Finishing Pvt. Ltd.

Plot # 42, Sector-24, Korangi Industrial
Area, Karachi
Union Industries Pvt. Ltd.

B-46, Estate Avenue, Site, Karachi
Bilal Textiles Pvt. Ltd.

3rd Floor, Bilal Plaza, Liaquat Road,
Faisalabad &
Chak # 120 RB Sargodha Road,
Faisalabad
Al Doha Jewellery
P.O. Box # 1152 Gold Souk, Dubai, UAE
Manjit Singh Kanwar

No. 156, Babadeep Singh Colony,
Amrisar, Punjab, India.
Abdulla & Ali

Building 138, Flat 1721/5, Block No. 314,
Lulu Avenue, Manama, Bahrain
D.S Textiles Ltd

20-K, Gulberg-II, Lahore.
Seyed Mohammad Seyed Rahim Taghva

P.O. Box # 1761, Dubai
Pervez Ahmed
20-K, Gulberg-II,Lahore.
10
11
12
Name and address
S.No.
Pervez Ahmed
Pervez Ahmed
Hassan Ibrahim Ahmed
Ali Pervez Ahmed
Abdullah Ahmed Al-Hayki

Ali Ahmed Al-Hayki
Eissa E H Baramki
Mian M. Saleem Omer

Mian Habibullah
Mian Naeem Omer
Mian Bilal Omer
Farah Naeem
Rifat Habib
Muhammad Javed Habib

Mirza Kamran Ali Khan
Perwaiz Iqbal Mansoori

Danish Mansoori
Faisal Atique
Attique Ahmed
Muhammad Afzal Khokhar

Haji Muhammad Nawaz Khokhar
Najma Nawaz Khokhar
Imtiaz Ali Khokhar
Zafar Mahmood Khokhar
Muhammad Raza Khokhar
Haji Allah Ditta Khokhar [Late]
Haji Fazal Hussain Khokhar[Late]
Malik Abdul Waheed

Malik Abdul Ghani
Riaz Begum
Yasmeen Begum
Tariq Mahmud Khan
Nooruddin Khan
Malik Rizwan Ghani
Name of individuals / partners /

proprietors / directors
Details of loan write-offs of Rs. 500,000 and above
35202-5637832-7
35202-5637832-7
35202-0104136-7
35202-8633784-5
33100-0902344-5
37405-6085591-5
33100-0571105-5
33100-5120610-3
33100-5329228-4
37405-4098929-8
42301-1176752-3
42301-1791682-5
S. K. Ahmad
S. K. Ahmad
Pervez Ahmed
Pervez Ahmed
Ahmed Al Hayki
Mian M. Umer
Mian M. Umer
Mian M. Umer
Mian M. Saleem Umer
Mian Naeem Omer
Mian Habibullah
Abdul Habib Ahmed

Zulfiqar Ali Khan
Abdul Ghani Mansoori

Perwaiz Iqbal Mansoori
Attique Ahmed
Shaikh Mohammad Yaseen
Allah Ditta Khokhar

Allah Ditta Khokhar
M.Nawaz Khokhar
Allah Ditta Khokhar
Allah Ditta Khokhar
Allah Ditta Khokhar
61101-4975939-5
61101-5184374-5
61101-2543732-2
61101-7339247-7
37405-6921606-7
37405-7616545-7
42000-0503530-5
42000-0503527-5
42301-8772647-7
42301-1086266-5
Malik Abdul Ghani

Malik Said Ali
W/o Malik Abdul Ghani
W/o Malik Abdul Ghani
Ghulam Muhammad
Feroze Din
Malik Abdul Ghani
Father / Husband Name
121-62-200648
13101-3432751-9
121-41-200645
121-86-200646
17301-4188261-5
13101-6729043-9
13101-2247562-3
CNIC Number
12,000
121,120
50,040
315
159,726
68,603
267,543
105,847
312,889
414,956
41,791
59,756
3,228
106,961
77,452
59,782
193,297
24,942
138,212
257,102
215,088
Interest /
Markup
Principal
Others
At the beginning
Annexure B as referred to in Note 10.6 of the Banks

53,791
180,876
53,268
107,276
237,178
128,385
267,543
105,847
312,889
608,253
240,030
395,314
Total
12,000
50,040
315
23,083
68,603
140,360
105,847
122,889
100,993
65,088
164,692
Principal
44,667
64,913
53,730
106,961
91,305
63,644
188,318
13,417
1,065
Interest /
Markup
6,210
73,961
119,310
327,774
56,667
64,913
103,770
107,276
114,388
132,247
146,570
179,808
242,199
289,311
406,279
429,092
Total
Rs. in 000
263,335
Others
Written off
123
Apple Transport LLC

P.Box # 30532, Ras Al Khaimah, UAE
Nasim Noor
H. No. 322, Street No 5, PAF Shaheen
Housing, Near PAF City School,
Shaheed-e-Millat Road
Kashis Embriodery
191-A Upper Mall, Lahore
Muhammad Asif Saigal

H. No. 100/1, 31st Street, Phase-VI,
Defence
Sh. Salman Bin Khalifa Bin Hamad Al

Khalifa
P.O. Box # 27, Bahrain
Ishaq Textile Corporation

Plot # DP-54,Sector 12-C. North Karachi
Ind. Area, Karachi
Fany Barcham
P.O. Box # 22550, Doha, Qatar
Riaz Ul Hassan Sabir

Sixty One Briar Avenue Surrey
Munawar Hussain
H. No. 7/1, Khayaban-e-Sehar, Phase-VI,
DHA
Aynura Rafiyeva
26th Shexlinsky Street , Baku, Azerbaijan
Mehboob Amin Pvt. Ltd.

Office # P-70, Usman Plaza, Katchery
Bazar, Faisalabad
Zephyr Textiles Ltd.

Burhan Muhammad Khan
3rd Floor, Lep Building, 97-B/D-1,Gulberg Arbab Muhammad Khan
III,Lahore.
Gauhar Abdul
Syed Manzoor ul Slam
Saba Burhan
Tahniat Mussaid
Mussaid Hanif
Al Samana Cont. & Transport Co.

Ahsan Raza Akhtar

41, B, Saba Avenue Phase-V, DHA,
Karachi
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Khial Mir Khan
Mehboob Elahi
Javaid Ahmed
Ali Mehboob
Muhammad Salman Inam
Muhammad Ishtiaque Ahmed

Muhammad Ashfaq Ahmed
Khalid Hussain
Mohaed Ali Ahmed Ali Al Shehhi

Islam Yusupov
Rajan B. Sujanani
Bhagwandas Trading Company

14

Paradise Spinning Mills Pvt. Ltd.

Munir Malik
49-KM Off Multan Road Mouza Dull Distt. Surrayia Begum
Kasur, Lahore
Hamid Munir
Name and address
13
S.No.
35200-1555645-1
35202-9104860-5
35202-6133136-5
35202-2190671-7
35202-4320027-2
35201-1234127-4
35201-1282509-1
33100-0697323-9
33100-0661710-0
33100-4892769-3
33100-0806921-1
42301-0127335-5
31303-7827514-3
42101-4571332-3
42101-5466411-9
42301-3470401-9
35202-4424118-1
42201-0613402-1
35201-4383429-3
35202-4852351-2
35201-9848441-5
CNIC Number
Atta Muhammad Khan

Muhammad Abdul Hai
Abdul Ghafoor Shah
Mussaid Hanif
Muhammad Hanif
Haji Qamar Uddin

Haji Qamar Uddin
Mehboob Elahi
Sh. Inam Elahi
Tasawwar Hussain
Rana Abdul Hafeez
M. Ishaq
M. Ishaq
Mian Anam Ilahi Saigal
Sh. Muhammad Amin
Noor Ahmed
Abdul Majeed
Munir Ahmad Malik
Munir Ahmad Malik
16,654
12,666
63,330
43,560
17,510
36,357
20,580
4,426
26,132
6,525
18,606
30,386
21,163
22,865
59,418
83,230
Principal
6,247
1,828
3,955
8,985
10,518
11,889
12,663
8,986
16,297
17,830
18,837
5,197
Interest /
Markup
1,001
413
763
469
Others
At the beginning

22,901
14,494
67,285
43,560
26,495
47,876
32,882
17,089
26,132
15,511
35,666
48,216
40,469
28,062
59,418
83,230
Total
4,221
8,617
1,739
4,426
6,524
22,865
33,329
13,230
Principal
5,956
1,828
10,820
9,744
10,518
11,889
8,600
8,986
16,297
17,830
18,837
5,197
2,275
Interest /
Markup
11,432
1,001
413
14,623
763
469
10,177
10,445
10,820
11,432
11,483
11,519
12,302
13,026
14,623
15,510
17,060
17,830
19,306
28,062
35,604
39,099
Total
Rs. in 000
25,869
Others
Written off
124
Annual Report 2013
Name and address
Syed Fahim Gilani

Flat No. C-319, 3rd Floor, Lakhani Pride,
Block 13, Gulistan-e-Johar Karachi
Tuba International
B-297/1,2 & 3,Sector 11-E, Fatima
Jinnah Colony, North Karachi
Ahmed Mohammed Salah

Flat 42, Building 188, Road 1703,
Diplomatic Area 317
Gulzar Hussain Group

House # 1, Siddique Colony, G.T. Road,
Peshawar
Waseem Ahmed Khan

P.O. Box # 117917, Dubai
Muhammad Imran
H. No. 24/1 Khayaban-e-Shmsheer,
Phase-V, 27th Street, DHA
Osama Alraey Shebel

P.O. Box # 54345, Adliya - Bahrain
Textile World FZC

P.O. Box # 8404, Sharjah, UAE.
Mohammed Yousif Syed Mehdi

Building No. 661, Road No. 2018, Block
320, Al Hoora, Bahrain
Abdulghani Mirza Jaffar Jahrami

Villa 1, Gate 1405, Road 3360, Almarkh
533
Hamed Sultan Saleem Algheilani

George Geha & Jelena Brajovic

Villa # 17, Street # 34-A, Umme-Suqeim
# 1, Dubai
Mian Habib Ahsan

H. No. 40, Block A, Peoples Colony No.
1, Faisalabad
Didi Iswandy
Kumar Arumugam
Rai Amir Saeed Khan

H. No. 339, Block G-III, Johar Town,
Lahore
Bushra Haider
H. No. 755-F-2, Wapda Town, Lahore
Shamel Mohammed Maher

Flat 21, Building No. 1901, Road 2370,
Block 523
S.No.
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Ikram ul Haq
Gulzar Hussain Qureshi

Mushtaq Hussain
Munawar Shah
Muhammad Ajaz Khan Ghori

35202-2357227-0
35202-4318857-5
33100-2350057-7
42301-1121425-9
135-92-485996
136-93-009573
17301-1335559-7
42101-1571410-5
42201-3234682-3
CNIC Number
Mohammed
Ali Haider
Saeed Ahmad Khan
Mian M. Ihsan
Mirza
Alraey
Muhammad Arif
Mola Buksh
Mola Buksh
Saddiq Shah
Mohammed
Muhammad Yar Khan Ghori
S. Aziz Ahmed
1,379
5,795
11,638
5,417
3,406
8,874
7,309
7,033
8,483
6,431
965
9,742
21,378
2,932
2,632
12,675
12,587
Principal
53
4,986
5,698
530
5,672
6,909
594
2,252
1,883
1,432
8,413
11,883
853
16
9,788
Interest /
Markup
176
110
242
250
Others
At the beginning

1,432
10,957
17,446
5,947
9,078
16,025
7,309
7,627
2,252
8,483
8,314
2,397
18,405
33,261
3,785
2,648
12,675
22,379
Total
1,379
5,416
1,109
7,032
8,483
6,431
873
2,632
5,675
Principal
53
4,986
5,698
715
5,740
6,909
7,309
827
2,247
2,053
1,432
8,405
8,688
16
9,788
Interest /
Markup
176
110
242
250
9,035
1,432
5,162
5,808
6,131
6,849
7,151
7,309
7,859
2,253
8,483
8,484
2,305
8,655
8,688
9,035
2,648
9,589
9,792
Total
Rs. in 000
3,914
Others
Written off
125
Al-Saquia Trading & Int. Services

Mohammad Ismail Dossa

D-96, Block -5, Kehkashan, Clifton,
Karachi
Salim Mohammed A.Albalushi

Jonas Joseph Konikara

P.O. Box # 548, Manama, Bahrain
Mushtaq Ahmad
H. No. 7, St. No. 3, Farooq Gunj, Lahore
Ghazi Muhammad Faruque

A. T. Industries Pvt. Ltd.

Chak # 129/10-R, Tehsil Jehanian, Distt.
Khanewal
M. Esmail & Co. Pvt. Ltd.

Dada Manzil, Khori Garden, Karachi
Kashif Munir
United Traders International, Ground
Floor, Khattack Plaza, St. No 1713, Hall
Road, Lahore
Aly Nidiaye Moukhtary

P.O. Box # 253
Khawaja Akbar Butt

793/A, Block - C, Faisal Tower, Lahore
M. Ahmed Sheikh
Data Ali Traders, Suit No. 7, 1st Floor,
Nigar Center, Patiala Ground, Link
Macleod Rd., Lahore
Khaled Omar Abdullah

P.O. Box # 76444
Rashid Tanveer
Fine Frames, Sh. No. 32, Siraj Covered
Bazar, G-6/3, Islamabad
Waqar Javaid Khan

H. No. 425, Main Samanabad, Sirhindi
Road, Lahore
Naeem Yaqoob
Natasha Textiles, 217-B-1, Johar Town,
Lahore
Muhammad Ishaq
H. No. 49-A, Punj Housing Society, Near
Defence, Lahore
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
Name and address
47
S.No.
Khaled Omar Abdullah
Aly Nidiaye Moukhtary
Akbar Muhammad Ali

Aziz Amir Ali
Asad Amir Ali
Azmat Hayat Tamman

Nuzhat Hayat Tamman
Yasir Yaqoob Al Ishaq

35201-4301772-9
35202-0776125-7
35200-1507979-7
37405-2428592-1
35202-4693946-9
35202-2909913-3
35202-5893538-1
35202-4738485-7
CNIC Number
Mian Muhammad
Mohammad Yqub
Mohammad Javaid
Abdul Rashid Sheikh
Hafiz M. Yamin
Muhammad Munir
M. Hayat Khan
Azmat Hayat
Sultan Ahmed
Joseph
3,649
4,407
6,283
5,348
2,120
6,209
11,985
2,037
5,343
3,367
2,570
4,315
9,716
320
4,329
28,034
3,105
Principal
3,177
3,280
3,432
3,545
1,630
3,718
6,602
1,871
3,809
685
666
269
4,254
965
443
11,101
1,985
Interest /
Markup
138
129
77
147
124
155
225
Others
At the beginning

6,964
7,816
9,792
9,040
3,750
10,051
18,587
3,908
9,307
4,052
3,236
4,584
14,195
1,285
4,772
39,135
5,090
Total
2,120
2,037
3,367
4,057
318
4,329
3,100
Principal
3,177
3,280
3,432
3,545
1,630
3,718
3,880
1,871
3,809
685
269
4,254
965
589
5,018
1,985
Interest /
Markup
138
129
77
147
124
155
4,159
3,315
3,409
3,509
3,692
3,750
3,842
3,880
3,908
3,964
4,052
4,159
4,326
4,479
1,284
4,918
5,018
5,085
Total
Rs. in 000
225
Others
Written off
126
Annual Report 2013
Sunil Gopinathan Pillai

Manama
Trade Developer International

B-5/165, Kabli Gate, Gujrat.
Sadaqat Manzoor Khan

House # 627 Block-3, Sector C-II,
Township, Lahore
Kanan Kamil Douba

Vernon Joseph Thomas

Flat # 14, Building No. 126, Road 2905,
Almarkh 529
Javed Iqbal
148-C, Marghazar Colony, Multan Road,
Lahore
Mohamed Salem Ould Mohamed

P.O. Box # 253
Haripur Food Industries (Pvt) Ltd.

(Formerly SDA Cold Storage. Haripur)
George Anthony
Chaudhry Poultry Farm
Pearl Textile Mills Ltd.

Mian Muhammad Rafiq
9th Floor, Adamjee House, I.I.Chundrigar Mian A. Rauf Ayub
Road, Karachi
Mian Nishat Rafiq
Mohamadou Ould Mohamad

P.O. Box # 253
Seikh Muhammad Idrees Zahid

Arooj Garments, S. No. 4, Basement,
Afzal Plaza, 10-C, Shahalam, Lahore
Alejandro Catapang Abdon

Binu Kunjappy
Suhaib Ahmed
P.O. Box # 290
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
Suhaib Ahmed
Mohamadou Ould Mohamad
Muhammad Saleem
Mohamed Salem Ould Mohamed
Javaid Iqbal
Sadaqat Manzoor Khan
Khan Muhammad Khan

H. No. 94/II, 25th Street, Khayaban-eMohafiz, Phase-VI DHA, Near Caltex
Pump
66
Malik Anjum Ashraf
Mansoor ul Haq Sheri

H. No. 507-C, DHA, Lahore
65

Sudhi Sunny
Al-Riffa 903
Name and address
64
S.No.
35202-7612445-7
35102-2111572-1
35202-4314441-5
35202-2936842-7
34201-3449866-3
42301-8008886-7
35202-0698666-3
CNIC Number
Sh. Muhammad Amin
Moola Buksh
Muhammad Ayub
Mian Muhammad Rafiq
Shah Muhammad
Muhammad Iqbal Akhtar
Thomas
Kamil
Manzoor Ahmed Khan
Muhammad Ashraf
Pillai
Shair Muhammad
Ayyaz ul Haq
Sudhi
1,981
1,996
2,929
428
2,000
13,417
2,144
2,125
626
3,564
81
547
9,429
2,542
343
5,404
3,649
125
Principal
2,201
160
207
2,142
1,845
300
1,266
169
2,409
1,852
610
795
713
717
3,178
3,077
783
Interest /
Markup
-
215
107
138
Others
At the beginning

2,201
2,141
2,203
5,286
2,273
2,300
14,683
2,313
4,534
2,478
3,564
691
1,342
9,429
3,255
1,060
8,689
6,864
908
Total
1,981
1,983
428
2,000
1,058
2,144
626
79
538
343
115
Principal
2,201
227
275
2,142
1,845
1,266
240
2,408
1,852
610
795
717
3,083
3,077
782
Interest /
Markup
116
300
2,563
2,932
2,978
107
138
2,201
2,208
2,258
2,258
2,273
2,300
2,324
2,384
2,408
2,478
2,563
690
1,342
2,932
2,978
1,060
3,190
3,215
908
Total
Rs. in 000
11
Others
Written off
127
Imran Iqbal Janjua

Flat No. A-1102, Bonvista Apartment,
Block 2, Clifton, Karachi
Qasir Iqbal
Top Kids Shoes, Shop No 5 B, Ali
Centre, Shoe Market, Shahalam, Opp.
Haji Hanif Mosque, Lahore
Saif Ullah
H. No. 35, St. No. 2, Chowk Patwarian,
Pir Ghazi Road, Ichra, Lahore
Manzoor Ahmed
H. No. P-248-B, Muslim Park Road,
Peoples Colony No. 2, Faisalabad
Mohammad Jabir
Muhammad Iqbal
Moza Mohal, P/o Kot Khaira, Tehsil &
Distt. Jhang
Al Shams Honda
2-A Muhammad Road, Arif Wala
Muhammad Rehan Qaiser

House # L-39 Phase-III, Defence View,
Karachi
New Bilal Petroleum Services
Mohammad Kamel Yaseen

P.O. Box # 27683
Viswanathan Sivraman
Michael Rocamora Santiago

P.O. Box # 50110, Hidd - Bahrain
Mumtaz Hussain
P.O. Box # 4911
Mohamed Lamine Ould M.D.OT

P.O. Box # 253
Naeem Kibria Bhatti

House# 7/5, Tahir Street, Tariq Colony,
Sodiwal, Multan Road, Lahore
Sheikh Asif Mehmood

Pak Army Tarpal House, Shop No. 27,
Landa Bazar, Lahore
Mahmood Anwar Lal Khan

P.O. Box # 3649
Fatima Ali Mirza

Vincent John Mendonsa

P.O. Box # 487836
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
Name and address
83
S.No.
Vincent John Mendonsa
Mahmood Anwar Lal Khan
Naeem Kibria Bhatti
Mohamed Lamine Ould M.D.OT
Mumtaz Hussain
Mohammad Kamel Yaseen
Mian Khalid Mehmood
Muhammad Rehan Qaiser
Muhammad Zulfiqar Atique

35202-0574645-1
35202-296155-3
31303-9029704-3
42201-4402964-3
36401-0860966-3
33202-6119079-3
33100-0873160-9
35202-9373071-9
35202-3031483-5
42301-5081997-3
CNIC Number
Sheikh Inaat
Ghullam Kibria Bhatti
Santiago
Viswanathan
Mian Ghulam Muhammad
Qaiser Hussain
Ch. Shamus Udin
Anwar Baig
Abdul Majeed
Aman Ullah
Sh. Iqbal Hussain
Muhammad Iqbal
1,434
1,641
3,163
5,122
704
64
656
3,000
4,327
1,863
1,619
2,398
3,798
2,241
7,827
Principal
121
1,685
1,590
1,752
1,122
451
517
1,242
1,906
3,272
1,628
328
1,976
1,968
1,984
1,560
Interest /
Markup
72
108
126
64
108
109
105
197
Others
At the beginning

1,627
1,641
1,685
4,861
5,122
1,752
1,826
515
517
1,898
4,906
4,327
3,398
3,555
1,947
4,482
5,875
4,330
9,584
Total
1,434
1,641
704
52
656
358
1,618
400
Principal
121
1,685
1,590
1,752
1,122
451
517
1,242
1,967
2,046
1,628
388
1,930
1,968
1,984
1,560
Interest /
Markup
72
108
1,708
12
1,964
108
109
105
1,627
1,641
1,685
1,698
1,708
1,752
1,826
515
517
1,898
1,967
1,964
2,046
1,986
2,006
2,038
2,077
2,089
2,157
Total
Rs. in 000
197
Others
Written off
128
Annual Report 2013
Ehtisham ul Haq
Goshe Shop No. 27, Ground Floor,
Hafeez Centre, Gulberg III, Lahore
Abd El Majid Ibrahim Abdalla

P.O. Box # 4017
Desert Farm Services

7-Anwarabad Colony, Bahawalpur
Salwa Tarish M. Ibrahim

Attique ur Rehman
Amratsar Siri Paiye, 3-Abbot Road,
Lakshmi Chowk, Lahore
AIQ Forging
17-C, Sahowari, Shalimar Link Road,
Opp. Shalimar Hospital, Lahore
Aslam Rafi & Co.

New Grain Market, Vehari Road, Multan.
Shahzeb & Company

Ahmed Nagar Road, Near Masjid Jamal
Mustafa, Kalaske Mandi
Mubarak Esmail
Muhammad Aslam
Chak No. 86 NB,Sargodha
Noor Mohammad
P.O. Box # 17691
Akram Metal Work

Gala Bakar Mandi, Sheikhupura Road,
Gujranwala
Salim Marhoun Khamis Al Naimi

P.O. Box # 253
Awami Corporation
Ghall Mandi, Bahawalpur
Mohammed Hossain
P.O. Box # 47523
Abdulla Salem Ahmed Al Thumairi

P.O. Box # 54639
U. I. Shoes
17-A, Asad Centre, Moon Mkt. Allama
Iqbal Town, Lahore
Azhar Ali Khan Laghari

Metro Enterprises
G.T. Road, Nasirpur, Peshawar
Obaid Ullah
H. No. C-76, Block 4, Gulshan-e-Iqbal,
Karachi
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
Name and address
102
S.No.
Arbab Mohammad Usman

Arbab Mohammad Omar
Kh. Khalid Mehmood
Abdulla Salem Ahmed Al Thumairi
Mohammed Hossain
Ch. Muhammad Arshad

Tabbasum
Salim Marhoun Khamis Al Naimi
Noor Mohammad
Muhammad Aslam
Arif Hussain
Ch. Muhammad Aslam
Awais Iqbal
Muhammad Zafar-ul-Hasan
Muhammad Nasir Sarwar
Abd El Majid Ibrahim Abdalla

42201-1394078-7
17301-4441883-3
17301-3418630-9
35202-6169492-3
31202-1888618-7
38403-2211549-9
34101-9786692-3
36302-0679440-7
35201-1333943-1
35202-2555051-3
31202-4989708-1
31202-0214325-5
34101-2341866-5
CNIC Number
M. Ibrahim
Arbab Ayub Jan
Kh. Ghulam Hussan
Faqir Muhammad
Safdar Ali
Muhammad Saleem
Ch. Muhammad Aslam
Muhammad Iqbal
Muhammad Shafique
Hasan
Sarwar
Zahoor ul Haq
2,304
1,283
2,000
1,022
210
303
1,000
682
1,425
4,000
3,505
11,000
2,046
1,569
2,550
539
2,143
Principal
1,137
1,264
204
1,111
1,031
1,343
350
1,399
2,038
1,517
1,433
1,058
1,533
Interest /
Markup
86
72
33
87
93
Others
At the beginning

3,527
1,264
1,283
2,000
1,298
1,321
1,334
1,343
1,383
1,399
2,720
1,425
4,000
3,505
12,517
3,566
1,569
2,550
1,597
3,769
Total
1,283
1,022
210
303
1,000
1,425
1,455
1,568
539
Principal
1,137
1,264
204
1,111
1,031
1,343
388
1,399
1,412
1,517
1,433
1,058
1,533
Interest /
Markup
86
1,286
72
1,432
87
1,588
1,223
1,264
1,283
1,286
1,298
1,321
1,334
1,343
1,388
1,399
1,412
1,425
1,432
1,455
1,517
1,520
1,568
1,588
1,597
1,626
Total
Rs. in 000
93
Others
Written off
129
Vickylyn Derufino Castilcon

P.O. Box # 30439
Syed Raza Kazim

Office Number 2, 1st Floor, GD Arcade,
Fazal ul Haq Road, Blue Area, Islamabad
Ehab B Sawiris
P.O. Box # 6865
Muhammad Amir
P.O. Box # 2951
Fatima B.R. Stephen Ahmed Julian

Joena Ramos Fajardo

P.O. Box # 2144
Chadi Kiwan
P.O. Box # 28013
Malik Sultan Sons Agro Service

Chah Bulbuli Wala, Shujabad
Sheikha Juma Al Saadi

Faqir Ghulam Mohammad

Village Lala Killay, P.O. Tarnab Farm,
Tehsil & Distt Peshawar
Ossama Mohamed Abdel Wahab Abda

P.O. Box # 27683
Muhammad Javaid Bhatti

Tufail Brothers, 12 Nila Gumbat, Near
Masjid Abubakar, New Cycle Market,
Lahore
Kissan Dost Agro Line

Ayyazbad, Marral Lar, Shujabad Road,
Multan
Malik Hamid Raza

Mouaza Tatepur, P.O Khas, Multan
Shibu Thomas Cheruvathoor

P.O. Box # 1203
Mohamed Hamrouni
P.O. Box # 253
Hamza Poultry Farm

Village Adil Garh, Tehsil Wazirabad,
District
Ana Marie Chico Mangahas

P.O. Box # 1367
Muhammad Tariq Mulazam Hussain

P.O. Box # 60578
Mohamed Lamine Ould Abdatt

P.O. Box # 253
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
Name and address
122
S.No.
Mohamed Lamine Ould Abdatt
Muhammad Tariq Mulazam

Hussain
Ana Marie Chico Mangahas
Hamza
Mohamed Hamrouni
Shibu Thomas Cheruvathoor
Malik Hamid Raza
Malik Fazal Bux
Ossama Mohamed Abdel Wahab

Abda
Faqir Ghulam Mohammad
Muhammad Sharif
Chadi Kiwan
Joena Ramos Fajardo
Muhammad Amir
Ehab B Sawiris
Vickylyn Derufino Castilcon

34104-4409778-1
36302-1669656-9
36304-3464783-1
35202-1635874-1
17301-1489770-7
36303-4073042-3
61101-9498118-9
CNIC Number
Haji Muhammad Khan
Faiz Bux
Mohammad Sadiq Bahtti
Abdul Ghyoor Khan
Malik Sultan Ahmed
Syed Ashoor Hassan
142
1,995
100
2,331
421
754
1,032
1,500
1,158
488
1,004
2,742
479
Principal
898
938
946
1,887
978
840
1,137
996
928
589
263
1,113
1,117
1,152
684
141
1,311
739
Interest /
Markup
-
80
43
83
Others
At the beginning

898
938
946
1,887
978
982
3,132
1,096
3,339
1,010
1,017
1,032
2,613
1,117
1,152
1,158
1,172
1,188
4,136
1,218
Total
142
421
754
1,033
1,158
488
1,004
479
Principal
898
938
946
1,787
978
840
928
589
263
1,117
1,152
684
141
1,118
739
Interest /
Markup
995
996
80
1,073
43
898
938
946
1,787
978
982
995
996
1,008
1,010
1,017
1,033
1,073
1,117
1,152
1,158
1,172
1,188
1,201
1,218
Total
Rs. in 000
83
Others
Written off
130
Annual Report 2013
Shabbir Ahmed
The Light Studio, P-321/B, Block-B,
Ghulam M. Abad Sadar Bazar,
Faisalabad
Pak Sweet House

Chowk Laal Pul, Mughal Pura, Lahore
Capt. S.M. Aslam

H. No. C-3/2-1, Sector Z-1, Gulshan-eMaymar
Zocimo Borromeo Lelina

P.O. Box # 2144
Abdul Lateef B. M. Al Jabri

Madina Traders
6- Urdu Bazar, Lahore
Syed Jaffar Hussain

P.O. Box # 3668
Malik Riaz Haider

Plot No. 626, Block 3, Flat No. 9, Sect.
C-1, Riaz Chawk, Township, Lahore
Fatima B R Stephen Julian

P.O. Box # 5476
Majid Ahmed Essa

Yasmin Sami Shamali

P.O. Box # 84284
Bernad Tony Kadam

P.O. Box # 53023
Faisal Mehmood
Mehmood Bhai Saree Waley, 2015, F.
Chowk Bazar, Hatta Rang Mahal, Lahore
Naeem Akhtar
P.O. Box # 78719
Mohamed Ould Tchib

P.O. Box # 253
Nazar Ahmed
Village Chah Kotly Wala, Tehsil
Nowshehra Virkan, Disrict Gujranwala
Raja Enterprises
4-T, Defense Housing Authority, Lahore.
Zahid Medicose
Quaid-e-Azam Road, Ali Pur
Muhammad Ishfaq
P.O. Box # 372
Muhammad Usman
Moza Tajwana,Vehari
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
Name and address
142
S.No.
Muhammad Usman
Muhammad Ishfaq
Zahid Hussain Bukhari
Hamza Riaz
Nazar Ahmed
Mohamed Ould Tchib
Naeem Akhtar
Bernad Tony Kadam
Yasmin Sami Shamali
Fatima B R Stephen Julian
Syed Jaffar Hussain
Ch. Sajid Waseem

Sajjad Khan
Zocimo Borromeo Lelina
Muhammad Younas

36603-4968499-7
32301-0914136-3
35201-1530059-7
34101-2403238-5
35202-7045923-9
35202-9405344-3
35202-3127636-7
42201-0623030-5
35201-1236118-7
33100-3788694-7
CNIC Number
Ahmed Khan
Akhter Hussain
Humayun Riaz
Inayat Ali
Shiekh Farukh
Malik Ghulam Haider
Ch. Lal Muhammad
Syed Aziz Hussain
Muhammad Rasheed
Bashir Ahmad Siddiqi
900
600
5,329
1,300
582
3,135
52
781
662
4,563
700
731
2,977
2,000
1,319
Principal
755
731
743
1,103
771
155
688
725
779
16
4,014
812
821
81
827
722
834
811
Interest /
Markup
39
88
115
180
114
70
Others
At the beginning

1,655
731
1,343
5,329
2,403
771
776
3,911
777
779
781
793
8,757
812
1,521
812
827
3,813
2,834
2,200
Total
582
52
781
662
717
Principal
725
731
766
771
155
688
725
779
16
617
812
820
106
827
722
834
810
Interest /
Markup
743
765
40
88
115
180
114
45
725
731
743
765
766
771
777
776
777
779
781
793
797
812
820
823
827
836
879
880
Total
Rs. in 000
70
Others
Written off
131
Name and address
Abid Nadeem
H. No. 133, Ch Park, Shadbagh Lahore
Roqaya Mohamed Dawood

Muhammad Amin
H. No. P-1, St. No. 1, Rabbani Colony,
Hilal Road, Faisalabad
Muhammad Zulfiqar
Chak No.111 NB, P/o Shaheenabad,
Tehsil Sillanwali, District Sargodha
Maher Saif Ullah

Dera Road Jampur
Soma Lab
692-N, Samanabad, Lahore
Hassan Alnaimi
Mohammad Asadullah Usmani

P.O. Box # 17666
Saeed Ahmed Khan

House # 1/E, Al Saeed House, Block Y,
New Multan, Multan
Rameez ul Haq
2nd Floor, Plot 12-C, St. No. 1, Badar
Commercial, DHA, Phase-V
Mohammed Rahamatullah
P.O. Box # 12751
Bajwa Industries Pvt. Ltd.

G. T Road, Gujranwala
Alfredo Rustia Ortiz

Riyadhy Gabbara
P.O. Box # 118685
Abdullah Sons
Veroky Bypass, Wazirabad
Syed Azhar Ali Rizvi

Banglow No. A/13, Muneer Garden,
Block 18, Gulistan-e-Johar, Behind Rufi
Lake Drive
Baghdad Trading Co.

Grain Market, Chichawatni
Bakht Zamin Khan

P.O. Box # 40837
Angelito Aguenza Ancaya

P.O. Box # 8988
S.No.
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
Angelito Aguenza Ancaya
Bakht Zamin Khan
Ch. Dilawar Khan
Muhammad Yousaf
Riyadhy Gabbara
Riaz Mehmood Bajwa

Manzoor un Nisa
Mudassar Riaz Bajwa
Sohail Riaz Bajwa
Mohammed Rahamatullah
Saeed Ahmed Khan
Mohammad Asadullah Usmani
Mian Ghulam Jilani
Maher Saif Ullah
Muhammad Zulfiqar

35303-0199236-7
42201-6887183-1
34104-1467861-7
34101-2475803-5
34101-2373193-8
285-72-071647
285-85-071645
41405-7180614-1
36302-1724552-5
35202-2343495-1
32402-5867336-3
38405-9041572-5
33100-2402024-5
35202-2875098-5
CNIC Number
Ch. Beer Din
Syed Akhter Raza
Jalal Din
Zulfiqar Ali Bajwa

Riaz Mehmood Bajwa
Riaz Mehmood Bajwa
Riaz Mehmood Bajwa
Muhammad Siddique
Abdur Rehman
Mian Fazal Din
Allah Wasaya
Muhammad Lateef
Allah Ditta
Mian Saraj Din
551
800
6,341
507
520
2,350
758
800
574
3,000
600
1,900
1,278
727
1,183
Principal
602
10
776
455
1,149
80
122
641
309
649
34
663
669
726
679
630
654
Interest /
Markup
43
165
34
337
43
31
71
74
Others
At the beginning

602
604
1,576
6,961
1,149
621
642
2,350
641
1,404
1,449
651
663
3,669
1,326
2,610
1,979
727
1,911
Total
551
507
503
574
727
Principal
602
10
617
455
621
80
122
641
309
34
663
669
679
629
654
Interest /
Markup
45
165
35
634
337
649
43
678
71
602
606
617
620
621
622
625
634
641
646
649
651
663
669
678
679
700
727
728
Total
Rs. in 000
74
Others
Written off
132
Annual Report 2013
Naseem Akhtar
Lasani Medical Store, Rathor Hospital,
Sargodha Road, Faisalabad
Muhammad Arshad
Klairwala Purana, Gajar Gols, Hafizabad
Maqsood Ahmad
Mohallah Chah Jeda Bucheki
Farooq Ijaz Qureshi

Jasarat Printers, Office No. 24, Circular
Road, Opposite Muslim Mosque, Lahore
Muhammad Saeed
Abdullah Textile, Shop No. 3, Gole
Chiniot Bazar, Fazal Din Market,
Faisalabad
Mustafa Hussain
H # 669 (First Floor), St # 75, Sector
G-10/4, Islamabad
Dr. Sethi Pharma Industries

3 KM, Burewala Road, Chichawatni
Syed Ali Khawar Shah

H # 103 C, New Muslim Town, Lahore
Al-Hafiz Traders
Mian Road Garjakh, Near Police Station,
Gujranwala
Ghous Bux
Mouza & P/o Khan Bela, Tehsil
Liaquatpur, Distt R.Y. Khan
Ali Shafiq
P.O. Box # 1588
Arif Mehmood Butt

Shop 3, Main Wandiala Road, Shahdra,
Lahore.
Rafi-Uddin
House # 301, Circular Road, Jatoi
District, Muzaffar Garh
Syed Mujeeb ur Rehman

House# B-291, Gulshan-e-Iqbal, Block
# 6, Karachi
Akbar Khan
Basti Ranjeh Khan, Tehsil Sadiqabad,
Distt R.Y. Khan
Fancy Leather House

5-E, Shahalam Market, Lahore
Tariq Mehmood & Brothers

Kot Pindi Daas Road, 25 Number Stop,
Mousa Shahdarah, Lahore
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
Name and address
181
S.No.
Tariq Mehmood Arsalan
Sh. Laal Din
Muhammad Akbar Khan
Rafi-Uddin
Ali Shafiq
Ghous Bux
Ijaz Ahmed
Syed Ali Khawar Shah
Nazir Ahmed
Irshad Akhtar
Maqsood Ahmad
Muhammad Arshad

35202-3090703-9
35202-8637124-7
42201-1873096-3
32302-1727348-5
35202-6200835-3
31302-4083716-5
34101-8182285-9
35202-2993751-9
36502-3284546-9
36501-5564946-0
Taaj Din Chishti
Sh. Ghulam Muhammad
Rahim Bux Khan
Syed Riaz ur Rehman
Walliuddin
Muhammad Hussain
Wahid Bux
Syed Israr Hussain Shah
Allah Bux
Noor Muhammad Sethi
Mehboob Ali
Mukhtar Ahmed
33100-0507728-3
21303-1708340-9
Ejaz Hassan
Hassan M.
M. Inyat
Amam Ali
35202-8404885-5
35402-1966778-5
34301-1773939-1
33100-2300119-9
CNIC Number
2,000
1,335
450
462
250
1,160
98
475
500
456
1,359
717
2,635
475
350
753
Principal
540
547
116
599
457
456
631
560
617
572
354
508
520
632
675
538
Interest /
Markup
432
209
27
219
219
69
63
65
Others
At the beginning

2,000
1,875
997
1,010
849
1,826
554
1,133
1,279
1,073
572
1,932
1,294
3,218
1,107
1,025
1,356
Total
98
Principal
540
547
116
343
456
558
560
568
572
354
507
520
587
590
531
Interest /
Markup
539
432
549
209
219
69
63
539
540
547
548
549
552
554
558
560
568
572
573
576
583
587
590
596
Total
Rs. in 000
65
Others
Written off
133
Name and address
Jose Raynard Pasco Guerrero

Samir Juma Amar

P.O. Box # 18184
Jaffer Poultry Farm

Village Botala Sharam Singh, Tehsil &
District Gujranwala
Pace Garements
House # 1, Block #7, Dera Ghazi Khan

P.O. Box # 3846
Manchester Woollen Mills

Babu Ashraf Colony, Ferozwala Road,
Near Canal Bridge, Gujranwala
Rana Muhammad Akram Khan

NFC Institute Fertilizer, P.O. Box # 1012,
Jaranwala Road, Faisalabad
Venugopal Raghu Nathan Nair

P.O. Box # 46550
Bashir Ahmed
H. No. D-36, Gulshan-e-Villas Site,
Hyderabad
Ghazi Sher & Manzoor Hussain

Chak # 140/EB, Burewala
Rahim Motors
Block X, D.G.Khan, H. No. 60, Block 48,
D.G.Khan
New Azad Industry

Chowk Urdu Bazar
Hajveri Cars
555-A, Moulana Shoukat Ali Road,
Lahore
M Saqib Hussain
H. No. P-463, St. No. 06, A Block,
Nazimabad, Near Babar Flour Mill
Danial Mahmood
H. No. 49 H, Block 6, PECHS
Muhammad Imran
Plot No. 89, Ground Floor, Block-A,
SMCHS
Tahir Saleem Vohra

H. No. 461, Kamran Block, Iqbal Town
Ansa Raja
H. No. 17 Blk-B, Valencia Town
Mohsin Ali
H. No. 48, St. No. 6, Muhammad Pura,
Near Abdalian High School
S.No.
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
Kamran Lodhi
Zahid Siddique
Abdul Reheem
Ghazi Sher
Manzoor Hussain
Venugopal Raghu Nathan Nair
Naeem Ashraf
Nadeem Ashraf
Farhan Ahmed
Jaffer
Samir Juma Amar

33100-4391115-7
35202-8793431-4
35202-3013225-3
42201-8313448-9
42201-5214266-5
33100-5149207-9
35202-5256364-5
35202-8915323-9
32102-0798565-3
36601-9107593-5
41304-9460840-1
33100-8918754-5
34101-9899495-7
34101-4669910-7
32102-0273933-1
34101-0535457-5
CNIC Number
Akhtar Qadeer Khan
Mohd. Siddique
Imam Bukhsh
Mahamand
Sarwer
Abdul Malik Khan
Rana Inayat Khan
Muhammad Ashraf
Muhammad Ashraf
Safdar Hussain
440
545
503
471
424
443
7,200
5,500
1,500
453
725
385
1,065
3,000
528
1,045
1,000
195
488
Principal
43
73
42
45
53
40
560
946
598
311
100
429
866
632
268
53
Interest /
Markup
-
34
22
33
53
36
16
192
17
81
214
70
Others
At the beginning

517
640
578
569
513
499
7,760
6,446
1,500
1,051
1,228
502
1,575
3,000
528
1,911
1,846
533
541
Total
440
545
503
471
424
443
385
528
195
468
Principal
43
73
42
45
53
40
542
944
502
311
99
429
532
267
70
Interest /
Markup
34
22
33
53
35
17
501
192
18
81
520
529
517
640
578
569
513
499
542
944
501
502
503
502
510
520
528
529
532
533
538
Total
Rs. in 000
71
Others
Written off
134
Annual Report 2013
Rehmat Ullah
Okara, Depalpur Road, Chak 32/2-L,
Near Al Rehmat Public School
Zulfiqar Ali
Mohalla Magsi, Jacobabad
Muhammad Jamil
H. No. 3, St. No. 160, Mohallah Shah
Abdul Ghani, Bahgban Pura
Mazhar Ahmed
F/3/4 KE-3594, H. No.8, Sobia Terris,
New Dehli Colony
Muhammad Azam
House No. 629 C, Block 3C-1, Township,
Lahore
M Shahzad Siddique
H. No. 74, St. No. 2, New Haseeb
Shaheed Colony, Near Mian Chowk
Hanif Akbar Marwat

22-B/2, Main National Highway, Phase-II,
DHA
Sheikh Irfan Munir

H. No. 272, Block D, Peoples Colony,
No. 1, Near Khizra Mosque
Salahuddin Ahmed
H. No. 10 B, Phase-II, South Park Street,
DHA
Pardeep
Flat No. 413, Harmain Tower, Block-3,
Gulistan-e-Johar, Karachi
Wajiha Naz
House No. B-189, Block D, North
Nazimabad, Karachi
Imtiaz Hussain Shah

H. No. 58, Sikandar Block, Allama Iqbal
Town
Junaid Ahmed
H. No. 266, Block W, DHA
Syed Alley Muhammad

Flat # C-4, Ali Appartment, Block 3,
Gulshan e Iqbal
Asif Haji
Flat No 3, Plot 162/N, Block 3, PECHS
Mohammad Ali Qureshi

H. No. 166-A, Block 3, Gulshan-e-Iqbal
Mohsin Abbas Cheema

P-274, Sarfraz Colony, Fawara Chowk
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
Name and address
217
S.No.

33100-5238230-7
42201-3658673-9
42201-0502695-3
44103-5328622-7
35201-6587367-9
35202-2198207-5
42101-9788302-4
43205-1525675-7
42301-8009574-5
33100-9045706-1
42301-1049078-3
33100-1027739-1
35202-2709453-9
42301-3550391-1
35202-2746609-9
43102-2279028-9
35302-5878022-1
CNIC Number
493
409
156
494
482
434
500
481
128
624
506
499
468
497
312
490
548
Principal
63
68
16
29
31
57
45
34
63
110
63
61
61
42
27
55
Interest /
Markup
17
37
414
27
17
16
28
72
367
99
20
20
28
22
198
35
42
Others
At the beginning

573
514
586
550
530
507
573
587
558
833
589
580
557
561
537
525
645
Total
493
409
156
494
482
434
500
481
128
624
506
499
468
497
312
490
548
Principal
63
68
16
29
31
57
45
34
63
110
63
61
61
42
27
55
Interest /
Markup
17
37
414
27
17
16
28
72
367
99
20
20
28
22
198
35
573
514
586
550
530
507
573
587
558
833
589
580
557
561
537
525
645
Total
Rs. in 000
42
Others
Written off
135
Name and address
Ali Anser
H. No. B-189, Block-D, North Nazimabad,
Karachi
Iqbal Faruqui
H. No. 24, Malik Tajdin Street, Millat
Road, Islampura
Syed Manzoor
House F-8, Rizwiya Society, Nazimabad,
Karachi
Israr Ur Rasheed
I R International Shop No. 1 Auto
Accessories, AD Gul Nawaz Road,
Shadman Market, Faisalabad
Nadeem Ahmad
Al-Karam Woodworking, 19 Hassan
Parwana Colony, Multan
Syed Raheel Jamil

Paramount Mineral Traders, R-720-721,
Sector 15-A-5, Buffer Zone, North Khi,
Karachi
Manzoor Hussain Bughio

Al Madina Tailoring Shop, Main Road,
Mohni Bazar, Nawabshah
Sabir Ali
H. No. C-18, Block 1, Clifton, Karachi
Muhammad Ramzan Sabqi

Classic Channel Enterpirses, F-26 -27,
First Floor, Rainbow Centre Saddar
,Karachi
Muhammad Akram Abbas

Al Ghias House, No. 20, Street No.
1, CMA Colony, Shami Road, Lahore
Cannt. Lahore
M.Sheraz
H. No. 29-B, Block-B, Gulberg Colony,
Faisalabad
Nadeem Ahmed Barlas

H # 37-B, Karim Block, Allama Iqbal
Town, Lahore
M Naveed Akhtar
Off. No. 03,04, 3rd Floor, Waqar Center,
Opp. Poonch House, 62-63, Canning
Road, Saddar Comm. Debt. Collection
Agency, Rawalpindi
Ahmed
Servay No. 248, Village Haji Hashim
Soomro, Qasimabad,
Near Naseem Nagar Chowk, Hyderabad
S.No.
234
235
236
237
238
239
240
241
242
243
244
245
246
247

41306-6995758-3
34202-1523565-7
35202-1526013-5
33100-6494863-5
35201-8405723-3
42201-2808512-5
42401-1769665-5
45402-0917543-3
42201-7974476-9
33100-0601616-5
33100-5839436-9
238
306
335
378
83
225
196
331
318
271
458
483
42101-0254842-5
484
Principal
484
35202-2954108-1
42101-0817354-3
CNIC Number
422
398
391
410
451
412
414
391
384
439
341
64
62
32
Interest /
Markup
38
38
34
37
43
32
35
36
27
37
29
19
17
43
Others
At the beginning

698
742
760
825
577
669
645
758
729
747
828
566
563
559
Total
68
89
100
78
21
67
59
81
95
30
134
483
484
484
Principal
422
398
391
410
451
412
414
391
384
439
341
64
62
32
Interest /
Markup
38
38
34
37
43
32
35
36
27
37
29
19
17
528
525
525
525
515
511
508
508
506
506
504
566
563
559
Total
Rs. in 000
43
Others
Written off
136
Annual Report 2013
Muhammad Rizwan
H. No. B-84, Sector 11/A, North Khi,
Karachi
Abdul Majeed
2 Brothers New Pul, Muslimabad,
Mughalpura Lahore
Khalid Pervaiz Sheikh

Leo Communications Pvt. Ltd., C-68,
Model Town, Lahore
Zia Ur Rehman Hasmi

8th, Second Floor, Unik Appartments,
Development Enclave, G-5, Islamabad
Shahmeer Ali
Fahad Poultry Traders, Shop 3, Khichi
Imam Bargah Road, New Machi Market,
Larkana
Muhammad Khalid Dar

C-225, Bl-2, PECHS, Karachi
Azra Saleem
Pixels Private Limited, Plot No. 178-C, St.
No. 2, Industrial Area, I-9/2, Islamabad
Jaffar Faisal
Brine Logistics, Opp. Sui Gas Street, UK
Road, Shahab Pura, Sialkot
Syed Hassan Talib

H. No. H-5, Jason Paradise, Block 7,
Boat Basin, Clifton, Karachi
Haji Abdul Karim

Abdul Karim Brothers Mr-1/79, Kutchi
Gali No-2, Paraline South, Karachi
Mehar Asghar Ali

H. No. 1, St. No. 4, Shadab Road, 18KM, Ferozpur Road, Lahore
Ghazala Fakhar
H. No. 3, Noor Park, Islampura, Lahore
Imtiaz Hussain Baloch

H. No. E-5/30, D-1, St. 6-A, Lane No. 5,
Officers Colony, Cavalry Ground, Lahore
Imtiaz Ali
Imtiaz Optical, Shop No. 4, Madina
Market, Tufail Road, Cantt., Lahore
Liaquat Ali Khan

Khan Rack Centre, Shop No. K4-18,
Zafar-ul-Haq Road, Rawalpindi
Adnan Amjad
Cresent Sugar Mill and Distill, Suit No.
408, Business Avenue, Shahrah-eFaisal, Karachi
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
Name and address
248
S.No.

42201-0808865-3
37405-7138312-5
35201-6123951-9
35201-7553430-3
35202-2511256-8
35102-3870409-9
42301-1021732-3
42301-3357140-3
34603-5109735-7
61101-6940032-0
473
282
70
326
247
306
391
395
285
226
381
395
43203-1930551-7
42201-0417614-9
423
368
61101-3340514-3
35202-8643210-5
206
35201-8614440-5
Principal
291
42101-6155620-3
CNIC Number
454
503
558
486
485
466
443
432
528
467
421
521
406
508
438
409
Interest /
Markup
37
51
55
45
47
42
32
34
57
43
33
42
33
50
42
33
Others
At the beginning

964
836
683
857
779
814
866
861
870
736
835
958
862
926
686
733
Total
139
73
12
94
74
88
117
118
65
111
123
60
87
Principal
454
503
558
486
485
466
443
432
528
467
421
521
406
508
438
409
Interest /
Markup
37
51
55
45
47
42
32
34
57
43
33
42
33
50
42
630
627
625
625
606
596
592
584
585
575
565
563
562
558
540
529
Total
Rs. in 000
33
Others
Written off
137
Name and address
Zarif Ahmed
International Systems, Suit No. 505-506509, Fortune Centre, PECHS, Shahrahe-Faisal, Karachi
Muhammad Javed Iqbal Tarhane

H. No. 805, Sector Z, Defence Housing
Society, Lahore
Muhammad Khalil Butt

H. No. 57, Qadir Park, Raj Garh, Lahore
Umer Idrees
Mian Traders, P-101, Karkhana Bazar,
Near Naeem Oil Traders, Faisalabad
Nadeem Jahangir
Nadeem Chori Maker and Gold Te, 1st
Floor of Jahangir Jewellers, Nagina
Chowk, Baghban Pura, Lahore
Akhlaq Ahmed Siddique

H.No 4, Block-C, Tando Mir Ghulam
Hussain, Unit No. 9, Latifabad,
Hyderabad
Sohail Qamar
New Vision Advertisers, 1st Floor,
6-Commercial Zone, Liberty, Gulberg,
Lahore
Ramish Lal
Fl No. B-39, 5th Floor, Noman Avenue,
Main Rashid Minhas Road, Johar More,
Karachi
Shabbir Ahmed Daud Pota

Mehran Broker, Off. No. 5, 2nd Floor,
Green Center, Market Road, Hyderabad
Gulam Rasool
Fl. No. A/34, 4th Floor, Indus Heights,
Hussainabad, Latifabad, Hyderabad
Aamir Ikram
Mallhi Sports Pvt Ltd., Daska Road,
Mallhiyan, Sialkot
Sheikh Shahid Waheed

Alamgir 23, G Link Arcade, Model Town,
Link Road, Lahore
Moazzam Ali Khan

320, Neelam Block, Allama Iqbal Town,
Lahore
Abdul Razzak
Fine Powder Coating, 399 Rexer Lane,
Manghopir Road, Old Golimar, Karachi
S.No.
264
265
266
267
268
269
270
271
272
273
274
275
276
277

42401-0872295-7
35202-2681265-1
35202-3187277-7
34603-6013096-7
41303-5685807-5
43103-1719887-9
43104-0566107-5
35202-2986473-9
41304-2321972-7
408
373
301
487
469
424
467
504
443
331
35201-8411191-9
451
434
291
Principal
306
33100-5598095-7
35202-9983875-1
35201-8785829-3
42201-7809036-7
CNIC Number
593
621
606
665
527
534
561
556
545
539
527
479
468
506
Interest /
Markup
48
60
63
62
48
49
46
51
48
50
49
44
42
39
Others
At the beginning

1,049
1,054
970
1,214
1,044
1,007
1,074
1,111
1,036
920
882
974
944
836
Total
119
73
66
139
124
93
94
93
93
82
131
130
87
Principal
593
621
606
665
527
534
561
556
545
539
527
479
468
506
Interest /
Markup
48
60
63
62
48
49
46
51
48
50
49
44
42
760
754
735
727
714
707
700
701
686
682
658
654
640
631
Total
Rs. in 000
38
Others
Written off
138
Annual Report 2013
Name and address
Nadeem Khan Rajput

H. No. 21/2A, 3rd Floor, Al Falah Housing
Society, Shah Faisal Colony, Near
Colony Gate, Karachi
Muhammad Rizwan Akbar

H. No. 36, Block No. 10, Chishtee Nagar,
Near Yasir Taris, Gulistan-e-Jouhar,
Karachi
Muhammad Zeeshan Warriach

134-B, Upper Mall, Lahore
Muhammad Saeed Anwar

Bhatti Brothers, General Supply 2-LA,
Akber Mkt. Shop # 6,Gulberg-III, Kalma
Chowk, Pharospur Road, Lahore
Tariq Sagheer
House No.C-10, Block-A, Unit No.6,
Latifabad, Hyderabad
Shabbir Ahmad
Rehman Paper House, G-3, Sher
Mohammed Plaza, Paisa Akhbar, Urdu
Bazar, Lahore
Badar Mustafa Bhatti

Body World Fitness Studio, 1st Floor,
Bhatti Arcade, Link Road, Model Town,
Lahore
Naveed Ahmad Gill

H. No. 77/B, Block B, Muslim Town,
Sargodha Road, Faisalabad
Muhammad Kashif
House # A-146, Sindh Balouch Housing
Society, Block # 12, Near Amir Pride,
Karachi
Abdul Razzaq
Jawa Washing, C-1 D-24, Sector 16,
Korangi Ind. Area, Karachi
Abdul Ghafoor Pathan

653 C, Flat-2, 2nd Floor, PECHS, Tariq
Road, Karachi
Muhammad Qaiser Bilal

Qaiser Bilal Ara Machine, 60-Bhalwal
Road, Gulshan e Sadiq, Sargodha
Irfan Sajid
Decora Furniture, Katchery Road, Opp.
Muslim High School, Nawabshah
Khurram Tariq
H. No. 310, Block C, Faisal Town, Lahore
S.No.
278
279
280
281
282
283
284
285
286
287
288
289
290
291

35202-2925809-3
45402-4698265-5
38403-8748252-3
42000-0442622-1
42101-1356977-7
42201-9371125-7
33100-4420680-9
35202-0108005-7
35202-2930735-5
41304-9918004-7
505
507
182
441
505
454
466
504
454
475
479
35202-5379025-1
427
476
Principal
455
36603-8890971-9
42201-7218558-7
43202-1072631-3
CNIC Number
736
730
788
720
689
652
655
584
617
591
610
591
603
579
Interest /
Markup
69
71
85
62
56
56
60
53
56
54
55
55
47
49
Others
At the beginning

1,310
1,308
1,055
1,223
1,250
1,162
1,181
1,141
1,127
1,120
1,144
1,101
1,077
1,104
Total
145
147
53
132
151
136
114
151
114
140
119
130
127
142
Principal
736
730
788
720
689
652
655
584
617
591
610
591
603
579
Interest /
Markup
69
71
85
62
56
55
60
53
56
54
55
55
46
950
948
926
914
896
843
829
788
787
785
784
776
776
770
Total
Rs. in 000
49
Others
Written off
139
Junaid Khan
H. No. 96, Pathan Laj Gali, Mohala
Qasim Bela, Yousaf Wala, Near
Grammar School, Multan
Shahid Sharif Ansari (Shoaib Sharif)

Plot No. 8, Block No.1, Sarvo Eng.,
Sector 5-E, North Karachi, Township,
Karachi
Kamran Ahmed
H. No. R-365, Gulshan-e-Sir Syed,
Sector 11-C-3, North Khi, Karachi
Ali Raqib
Logistic Solution, 42-B, SMCHS, Karachi
Atif Ali Khoso

Muhalla Shah Faisal Colony, Golimar
Road, Sukkur
Adnan Hameed Khan

K & N Enterprises, Suit-1403, 14th Floor,
Green Trust Tower, Jinnah Avenue, Blue
Area, Islamabad
Ahmed Khan
H. # 366, St. # 84, G-11/3 Islamabad
Muhammad Arif Ali

Chenab Fabrics, Sh. No. 17, Al Mumtaz
Plaza, G-9, Islamabad
Kamran Younas
Rehmat Industry, Urooj Impex, Jinnah
Road, Msulim Town, Masjid Mustafai,
Gujranwala
Muhammad Rafique
H. No. 375, St. No. 3 Block 14, Bar e
Umar, Sargodha
Tarannum Sabih
163, 32nd Street, Phase-VI, DHA, Karachi
Duty Free Shop Limited
Khalid Trading Co.
Ahtisham Ahmed Cheema
Muhammad Tanveer Khan
Sheikh Muhammad Akmal
Muhammad Haroon Ghazi
Khalid Mehmood
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
Name and address
292
S.No.
Shamshad Ahmed

31101-1655961-1
42301-2774872-4
38403-1263664-3
34101-3136151-7
61101-8948058-9
61101-2025012-9
42301-5393471-3
45504-1952430-9
35202-2482442-5
42101-5058722-3
Muhammad Rafi
911
7,553
1,694
6,499
7,020
975
59,419
408
270
457
502
492
507
426
470
504
42101-8934675-1
Principal
477
36303-0930426-1
CNIC Number
618
3,812
1,204
2,730
4,888
830
505
508
493
475
372
358
855
857
814
777
764
Interest /
Markup
25
36
53
40
30
28
81
65
65
60
58
Others
At the beginning

1,529
11,365
2,898
9,229
11,908
1,830
59,424
949
508
816
972
904
878
1,443
1,348
1,349
1,341
1,299
Total
59,419
68
107
115
123
152
127
141
150
137
Principal
618
3,812
1,204
2,730
4,888
830
505
508
485
478
375
362
855
857
814
777
764
Interest /
Markup
25
36
53
40
30
28
81
65
65
60
618
3,812
1,204
2,730
4,888
855
59,424
541
508
606
625
520
513
1,088
1,049
1,020
987
959
Total
Rs. in 000
58
Others
Written off
140
Annual Report 2013
Rashid Mehmood
Shafiq Ahmed Shad
Zahid Mehmood
Techno Pac
Naseem & Co.
Meena Umer
Amar Idrees
Saira
Mumtaz Ali Khan
Qazi Cold Storage
311
312
313
314
315
316
317
318
319
Name and address
310
S.No.


CNIC Number
1,147,341
3,108,907
1,392
7,452
13,446
6,915
562
1,140
5,188
880
3,408
Interest /
Markup
303
7,692
9,550
14,300
6,910
1,821
1,800
8,104
2,730
5,649
Principal
15,849
1,034
45
56
176
41
Others
At the beginning
1,337
9,129
17,058
27,922
13,866
2,383
2,940
13,292
3,610
9,057
Total
4,272,097

1,124,571
135
Principal
1,052,805
931
7,452
13,446
5,539
562
1,140
5,188
575
3,058
Interest /
Markup
900,417
1,034
45
3,077,793
1,169
976
7,474
13,446
5,539
562
1,140
5,188
575
3,058
Total
Rs. in 000
22
Others
Written off
Annexure C As Referred to in Note 11.7 of the Banks

Disposals of operating fixed assets during the year 2013
Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)----------------------------
Mode of
disposal
Particulars of Buyers

Items having book value of
less than Rs. 250,000 or cost of
less than Rs. 1,000,000
3,011
2,766
245
181
Auction
Various
Electrical, office and

computer equipment
43,971
42,933
1,038
3,189
Auction
Various
Vehicles
more than Rs. 250,000 and
cost of more than Rs. 1,000,000
Toyota Corolla
1,565
516
1,049
1,200
Insurance Claim
1,526
5,420
4,588
4,196
4,295
80
596
636
636
560
560
390
620
560
560
879
879
864
849
879
285
825
819
59
11
344
33,481
1,373
5,420
4,588
4,196
4,295
72
536
573
573
504
504
351
558
504
504
791
791
778
764
791
257
742
737
53
10
237
31,018
153
0
0
0
8
60
63
63
56
56
39
62
56
56
88
88
86
85
88
28
83
82
6
1
107
2,463
305
2,581
1,004
1,145
868
92
939
632
569
481
444
451
516
425
422
851
839
758
842
850
282
630
953
17
6
2
18,104
Buy Back
Auction
Negotiation
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction

Honda Civic
Toyota Landcruiser
Lexus
Chrysler
Chrysler
Transport Van
Transport Van
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Toyota Corolla
Toyota Corolla
Toyota Corolla
Toyota Corolla
Toyota Corolla
Pajero
Land Cruiser
Toyota Hilux
Cycles / Bicycles
Cycles / Bicycles
Various
Saeed Iqbal
Saud Mohammad Shinain Arjawawani
Rahoof A. F. Moosa
Behbehani Brothers W.L.L.
Mr Masood Ahmed
Muhammad Ayub
Span Gul
Sheikh Abdul Waheed
Khalil ur Rehman
Aijaz Ahmed
Aijaz Ahmed
Syed Ariz Ali
Aijaz Ahmed
Naveed Rauf
Sheikh Abdul Waheed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Naveed Rauf
Syed Riaz Ahmed
Muhammad Javed
Danish Alvi
Qazi Irfanullah
Various
141

Disposals of operating fixed assets during the year 2013 (Contd.)
Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)----------------------------
Mode of
disposal
Ijarah Assets
more than Rs. 250,000 or cost of
more than Rs. 1,000,000
Commercial Ijarah - Ghani Glass Limited
Commercial Ijarah - M/s Atlas Honda Limited
Commercial Ijarah
- Mecas Engineering (Pvt) Limited
Commercial Ijarah - Tanveer Cotton Mills
Commercial Ijarah - Hotel Defense
Commercial Ijarah - Royal Tech
Commercial Ijarah - Mecas Foundry
Commercial Ijarah - National Foods Limited
Honda City
Honda City Aspire MT
Toyota Corolla GLi
Toyota Corolla GLi
Honda City
Honda City
Honda City
Toyota Corolla XLi
Suzuki Swift
Toyota Vitz
Honda City
Daihatsu Cuore Cx Eco
Toyota Corolla GLi
Toyota Corolla GLi
Toyota Corolla GLi
Toyota Corolla GLi
Suzuki Cultus VXR CNG
Toyota Corolla XLi
Toyota Corolla XLi

Commercial Ijarah - Premiere Dairies
Honda City
Toyota Corolla GLi
Toyota Corolla XLi
Toyota Corolla XLi
Honda Civic VTi Oriel
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Suzuki Liana
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
142
Annual Report 2013
170,000
15,711
79,333
14,907
90,667
804
94,778
804
Buy Back
Buy Back
Ghani Glass Limited

M/s Atlas Honda Limited
15,457
12,213
12,095
10,552
6,874
4,360
1,710
1,701
1,625
1,623
1,464
1,439
1,430
1,323
1,168
1,131
1,126
1,111
1,064
1,035
1,035
1,034
1,032
1,030
1,012
13,911
10,992
9,676
9,497
6,186
2,175
182
321
537
536
626
754
639
985
726
339
625
859
765
636
554
782
219
743
721
1,546
1,221
2,419
1,055
688
2,185
1,528
1,380
1,088
1,087
838
685
791
338
442
792
501
252
299
399
481
252
813
287
291
1,546
1,221
2,419
1,055
687
2,505
2,095
1,482
1,088
1,088
838
686
740
355
442
1,094
576
265
309
947
151
251
836
299
381
Buy Back
Buy Back
Buy Back
Buy Back
Buy Back
Buy Back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Mecas Engineering (Pvt) Limited

Tanveer Cotton Mills
Hotel Defense
Royal Tech
Mecas Foundry
National Foods Limited
Muhammad Mustafa
Imran Khan
Wajid Sarwar
Wajid Sarwar
Mukhtar Khan
Muhammad Asif
Khurram Farooq
Qaiser Hafeez
Syed Asad Imam
Faisal Ijaz
Ghulam Abbas
Naveed Iqbal Khan
Khurram Farooq
Asim Rehman Khan
Adnan Ismail
Mohammad Ahmed
Muhammad Ashraf
Muhammad Rafi Khan
Muhammad Iqbal
2,200
1,044
1,043
1,012
982
969
960
959
956
954
948
945
945
944
943
1,980
907
814
778
849
725
784
401
771
815
689
762
716
769
806
220
137
229
234
133
244
176
558
185
139
259
183
229
175
137
220
149
273
445
143
257
186
572
185
139
259
183
229
185
137
Buy Back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Premiere Dairies
Muhammad Javed Shamsi
Muhammad Nadeem
Asadullah
Mohammad Irfan
Yasir Amir
Syed Akleem Imtiaz
Mohammad Raza Ahmed
Mohammad Tariq Dara
Mohammad Kousar Khan
Bina Khan
Naeem Ahmed Rana
Manzoor Uddin
Nasir Ghulam
Muhammad Kausar

Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)---------------------------Toyota Corolla XLi
Suzuki Liana
Honda City
Toyota Corolla XLi
Honda Civic Exi
Honda Civic Exi
Suzuki Cultus Vxl CNG
Suzuki Bolan CNG
Honda City
Nissan Lancer
Hyundai Santro
Suzuki Alto VXR CNG
Shehzore Pickup
Shehzore Pickup
Suzuki Bolan CNG
Shehzore Pickup
Shehzore Pickup
Shehzore Pickup
Honda City
Shehzore Pickup
Honda City
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
942
939
931
907
902
869
868
860
858
852
852
849
847
819
772
769
739
738
731
731
729
726
720
716
716
716
716
714
709
708
708
708
704
703
703
695
694
689
683
678
677
676
673
673
672
668
660
657
657
657
657
657
247
815
753
467
648
712
443
693
658
687
682
683
642
508
549
623
535
597
600
552
554
514
512
581
58
424
581
208
616
363
615
571
578
288
572
602
561
555
538
352
359
579
576
575
575
479
566
456
562
562
467
467
695
124
178
440
254
157
425
167
200
165
170
166
205
311
223
146
204
141
131
179
175
212
208
135
658
292
135
506
93
345
93
137
126
415
131
93
133
134
145
326
318
97
97
98
97
189
94
201
95
95
190
190
711
124
178
439
297
170
425
167
200
165
169
166
205
320
223
146
214
141
141
176
175
210
208
135
676
304
135
196
106
355
102
137
135
523
134
100
134
134
151
329
334
97
97
97
97
331
94
202
95
95
190
190
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Insurance claim
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Muzafar Aleem Siddiqui

Najam Uddin Quershi
Ahmed Bilal
Javed Arshad Siddiqui
Kashif Ali
Danish Mansoor Khan
Ajaz Ahmed
Muhammad Munawar
Muhammad Amir Ali
S. Muhammad Ishtiaq
Robin Augustine Peter
Muhammad Tariq Khan
Shakeel Essa Jaffer
Muhammad Asif
Muhammad Nadeem
Nand Lal
Talat Mehmood
Muhammad Kaleem
Aneel Mazhar
Mohammad Taj Uddin
Muhmmad Ashraf
Asfiya Aziz
Qayyum Khan
Aijaz Ali Sial
Basheer Ali
Nisar Ahmed
Nisar Akber
Mohammad Ali
Muhammad Javed Sagher
Ghulam Farooq
Zeeshan Ahmed
Mohammad Shareef
Pak Qatar General Takaful Company Limited
Usman
Azeem Ahmed
Abdul Majid Shaikh
Wajahat Ali Khan
Syed Nasrullah Shah
Rabia Abeer Fatima
Kalash Kumar
Syed Fahad Razi
Muhammad Munir
Manzoor Ahmed Sheikh
Muhammad Zubair Rasheed
Syed Mojiz Ali
Nadeem Ali
Muhammad Javed
Kamran Ali
Shazada Ghulam Mustafa
Shaukat Ali
Muhammad Nafees Qureshi
143

Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)---------------------------Suzuki Cultus VXR CNG
Suzuki Alto VXR CNG
Daihatsu Cuore Ecometic
Suzuki Mehran VXR
Toyota Vitz
Suzuki Cultus VXR
Suzuki Bolan
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Mehran VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Bolan CNG Std
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Daihatsu Cuore Cx At
Suzuki Alto VXR CNG
144
Annual Report 2013
656
656
656
654
654
652
649
647
641
626
623
619
617
617
616
616
615
613
603
585
584
575
574
573
566
563
561
557
557
557
556
555
554
554
553
553
553
551
551
550
549
547
546
545
545
545
545
544
544
543
542
538
538
246
560
438
528
65
460
488
204
488
417
367
441
499
537
464
536
534
314
471
482
372
419
436
431
267
480
476
397
477
343
406
475
400
474
474
473
419
446
450
470
390
467
389
414
466
466
476
389
440
387
322
118
410
96
216
126
587
189
159
437
138
206
252
176
118
79
152
79
79
289
114
102
203
155
137
135
296
81
81
160
80
213
149
79
154
79
79
80
132
105
100
79
157
79
156
131
79
79
68
155
104
155
216
126
410
126
216
125
605
189
195
486
148
207
252
215
118
89
173
89
88
289
112
112
203
165
173
136
267
81
81
160
80
213
159
79
153
79
79
79
132
105
100
92
157
78
156
130
78
78
78
156
104
156
234
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Faraz Ahmed
Taimur Haris
Wali Ullah Khan
Syed Asad Imam
Syed Hur Ali
Sharjeel Anjum
Muhammad Shafi
Muhammad Mithal
Allah Bux Zunr
Muhammad Nasir
Mafhh International
Muhammad Yousuf Khanani
Farhan Ilyas
Noor Muhammad Shahid
Samiullah Khan
Muhammad Imran
Samina Ahmed
Syed Kashif Mahmood
Syed Ali Murad Shah
Imran Ali
Kanwal Rehman
Safdar Hussain
Talal Durrani
Jawad Nasir
Dilawar Khan
Abdul Jabbar
Muhammad Iqbal Mansoori
Mohammad Nafees
Uzma Asif
Humaira Fareed
Zaheer Amjad
Aftab Ahmed Bughio
Jerome Benjamin
Muhammad Adnan Bashir
Mohammad Saleem Malik
Faisal Majeed Bhatti
Syed Ameer Ali Shah
Imran Afzal
Salman Baig
Nighat Taufiq
Qaiser Yousuf
Haris Ahmed
Wajjid Pervaiz
Javeria Siddique
Muhammad Arif
Syed Raza Hussain Moosavee
Imran Haider
Ghulam Dastagir Paracha
Seema Zaki
Ghazala Abdul Aziz
Mohammad Tanvir Sheikh
Sheikh Zakaria Ahmed

Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)---------------------------Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Daihatsu Cuore Cx
Suzuki Bolan CNG
Suzuki Alto VXR CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Baleno
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Ravi CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Alto
Suzuki Ravi CNG
Suzuki Bolan CNG
538
538
538
537
537
537
537
537
536
533
532
531
531
530
528
524
522
520
519
518
516
508
507
501
501
485
483
483
483
483
483
482
482
481
478
477
477
473
473
472
469
468
467
467
463
457
457
457
450
442
442
442
461
461
435
337
420
460
460
409
433
353
369
273
430
454
343
399
447
321
445
446
418
266
434
430
429
347
251
374
300
378
424
421
367
263
365
386
252
349
361
414
400
380
400
400
312
371
339
242
365
379
296
377
77
77
103
200
117
77
77
128
103
180
163
258
101
76
185
125
75
199
74
72
98
242
73
71
72
138
232
109
183
105
59
61
115
218
113
91
225
124
112
58
69
88
67
67
151
86
118
215
85
63
146
65
85
77
103
200
129
78
90
128
103
180
374
262
101
76
255
125
75
199
75
73
98
242
73
71
71
138
233
141
183
115
69
73
115
224
117
91
224
135
112
67
67
89
67
67
151
87
109
215
85
77
147
63
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Muhammad Usman
Waseem Anwer
Ather Masood Rana
Muhammad Khalid Shakir
Azam Khan
Faraz Ahmed
Adnan Akhter
Muhammad Hamid
Syed Farhan Ali
Suhail Anjum Jaffari
Sohail Athar
Zeeshan Ahmed Khan
Sharjeel Mehmood
Syed Ali Hasan Rizvi
Asad Hafeez
Aijaz Ali Sheikh
Sajjad Haider
Mohammad Yasir
Omer Nadeem Ansari
Aijaz Ali Shaikh
Abdul Wahab
Muhammad Khalid Abbasi
Ghulam Hussain Najmi
Mohammad Iqbal
Ilyas
Jahan Sher Khan
Mazhar Ali Siddiqui
Mukhtar Khan
Qurban Ali
Ishmat Khan
Ghulam Mustafa Qureshi
Rizwana Jabeen
Mohammad Tanveer
Nasreen Fahmi
Jibran Farooq Awan
Syed Farid Uddin
Muhammad Iqbal Farooq
Muhammad Jahangir
Muhammad Fazil
Gul Samar
Shakir Ali
Khawer Hashmat Khan
Muhammad Irfan
Haider Abbas
Farzana Amin
Mohammad Iqbal Abro
Khalil Ahmed Mangi
Muhammad Taqi
Imran Khan
Syed Salman Zafar
Syed Kousar Ali Hamza
Huzoor Ali
145

Cost
Accumulated
Book value
Sale
depreciation
proceeds
---------------------------------(Rupees in 000)---------------------------Suzuki Bolan CNG Std
Suzuki Mehran VX CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Ravi CNG
Intangible assets
Items having book value of less than
Rs. 250,000 or cost of less than Rs. 1,000,000
Total
146
Annual Report 2013
Mode of
disposal
Haji Sabir Hussain Bhatti

Tufail Ahmed
Mehmood
Syed Ghufran Ul Haq
Farrukh Aziz
Mohammad Hanif
Mohammad Akram
Humera Naz
Mushtaque Hussain
Aziz Ahmed Soomoro
Syed Irfan Ali
Arshad Sohail
Mehwish Lace Works
Abdul Razzak
Abdul Rasheed
Gul Sharif
Muhammad Shahid Siddiqui
Manzoor Hussain
Riaz Mehmood
Muhammad Akram
Ghulam Mustafa
Abdul Kalim
Akhtar Ali
Atif Ali
Ijaz Ahmed Gondal
Mohsin Jhangir
Mohammad Ramzan
Mehboob Ali Solangi
Noor Muhammad Khan
Sohail Kamal
Ali Muhammad
Uzma Amir Ali
440
435
432
430
426
424
424
422
420
405
402
400
400
398
398
396
395
395
394
393
393
387
385
383
383
380
378
374
373
372
370
318
394,956
357
274
371
275
365
334
365
345
354
252
221
334
326
313
331
340
339
321
227
319
281
306
258
224
224
273
306
232
273
266
300
264
250,235
83
161
61
155
61
90
59
77
66
153
181
66
74
85
67
56
56
74
167
74
112
81
127
159
159
107
72
142
100
106
70
54
144,721
84
161
62
109
60
100
60
79
60
153
170
74
74
93
74
56
56
74
167
74
112
90
127
159
159
180
71
142
100
115
69
151
151,885
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Write-off
475,427
326,961
148,466
173,359
BDO Ebrahim & Co.
2nd Floor, Block C
Lakson Square Building No. 1
Sarwar Shaheed Road
Karachi 74200
Beaumont Road
Karachi 75330

We have audited the annexed consolidated financial statements
comprising consolidated statement of financial position of United Bank
Limited Bank) as at December 31, 2013 and the related consolidated
profit and loss account, consolidated statement of comprehensive
income, consolidated cash flow statement and consolidated statement
of changes in equity together with the notes forming part thereof, for
the year then ended. We have also expressed separate opinion on the
financial statements of United Bank Limited. The financial statements
of the subsidiaries United Executors and Trustees Company Limited
and UBL Fund Managers Limited were audited by BDO Ebrahim &
Co., Chartered Accountants while the financial statements of the
subsidiaries United National Bank Limited, UBL (Switzerland) AG and
UBL Bank (Tanzania) Limited were audited by other firms of auditors
whose reports have been furnished to us and our opinion, in so far as
it relates to the amounts included for such companies, is based solely
on the report of such auditors. These consolidated financial statements
are the responsibility of the Banks management. Our responsibility
is to express an opinion on these consolidated financial statements
based on our audit.
Our audit was conducted in accordance with the International Standards
on Auditing and accordingly included such tests of accounting records
and such other auditing procedures as we considered necessary in the
circumstances.
In our opinion, the consolidated financial statements present fairly
the financial position of the Bank and its subsidiary companies as at
December 31, 2013 and the results of their operations for the year then
ended.
The consolidated financial statements of the Bank for the year ended
December 31, 2012 were audited by BDO Ebrahim & Co., Chartered
Accountants and Ernst & Young Ford Rhodes Sidat Hyder & Co.,
Chartered Accountants who through their report dated February 24,
2013 expressed an unqualified opinion thereon.
BDO Ebrahim & Co.
Zulfikar Ali Causer

Mazhar Saleem

Karachi
147

Note
ASSETS
Investments
Advances
Performing
Other assets
2013
2012
2011
----------------------------- (Rupees in 000) -----------------------------Restated
Restated
6
7
8
9
89,591,601
32,658,606
29,858,038
458,846,198
94,846,802
21,967,703
22,828,834
381,245,903
86,309,061
16,579,821
12,375,261
301,106,877
10
10
404,946,323
10,336,987
415,283,310
28,037,980
29,356,983
1,083,632,716
371,001,659
14,832,602
385,834,261
27,460,839
28,162,016
962,346,358
329,969,594
11,169,925
341,139,519
25,745,215
1,305,497
23,791,738
808,352,989
14
15
16
17
18
19
20
16,600,691
41,077,730
889,525,603
665,328
1,325
1,395,138
23,093,754
972,359,569
111,273,147
7,615,382
69,693,579
752,785,895
9,319,264
2,109
856,485
20,145,946
860,418,660
101,927,698
5,879,043
49,955,704
634,796,624
11,317,080
19,209,579
721,158,030
87,194,959
21
12,241,798
38,049,345
45,208,302
95,499,445
3,487,918
98,987,363
12,285,784
111,273,147
12,241,798
32,298,690
39,305,127
83,845,615
2,827,060
86,672,675
15,255,023
101,927,698
12,241,798
27,495,959
35,481,967
75,219,724
2,324,385
77,544,109
9,650,850
87,194,959
11
12
LIABILITIES
Bills payable
Borrowings
Subordinated loans
Other liabilities
NET ASSETS
REPRESENTED BY:
Share capital
Reserves
Total equity attributable to the equity holders of the Bank
Non-controlling interest
22
23
The annexed notes from 1 to 49 and annexures form an integral part of these consolidated financial statements.
Atif R. Bokhari
President &
148
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Consolidated Profit and Loss Account

Note

25
26
75,709,170
36,199,807
39,509,363
75,379,861
35,759,090
39,620,771
10.4
8.5
9.3
10.5
1,346,141
60,509
5,871
181,724
1,594,245
37,915,118
3,358,849
168,492
400,524
319,102
4,246,967
35,373,804
11,443,576
1,611,917
2,211,756
3,026,130
(4,416)
1,127,398
19,416,361
57,331,479
9,455,098
539,640
1,946,209
1,259,476
(541)
3,993,125
17,193,007
52,566,811
29
30
31
32
28,570,569
325,562
503,175
249,377
29,648,683
1,282,382
28,965,178
25,558,429
489,322
535,756
64,984
26,648,491
2,397,659
28,315,979
33
33
33
8,302,311
61,892
870,204
9,234,407
19,730,771
9,061,871
489,932
(483,263)
9,068,540
19,247,439
19,285,513
445,258
19,730,771
19,158,142
89,297
19,247,439

Non Mark-up / Interest Income
Dividend income
Unrealized loss on revaluation of investments classified as held for trading
Other income
Non Mark-up / Interest Expenses
Other charges
Share of profit of associates
Taxation - Current
- Prior
- Deferred
2013
2012
------------ (Rupees in 000) ---------Restated
27
9.4
28

Attributable to:
Equity shareholders of the Bank
----------------- (Rupees) --------------Restated

34
15.75
15.65
Atif R. Bokhari
President &
Amin Uddin
Director
Seerat Asghar
Director

Chairman
149
Consolidated Statement of Comprehensive Income

2013
2012
----------- (Rupees in 000) ------------Restated
Profit after tax for the year attributable to:
19,285,513
445,258
19,730,771
19,158,142
89,297
19,247,439
Other comprehensive income:

Items that will never be reclassified to profit or loss
Actuarial gain / (loss) on defined benefit obligations
Related deferred tax (charge) / reversal
63,021
15,103
(16,901)
61,223
(177,402)
(37,361)
46,109
(168,654)
Items that are or may be reclassified to profit or loss

Exchange differences on translation of net investment in
foreign branches and subsidiaries
3,859,960
199,296
4,059,256
Gain on cash flow hedges

Related deferred tax charge on cash flow hedges
27,337
(9,568)
17,769
Comprehensive income transferred to equity - net of tax
2,955,864
449,652
3,405,516
63,078
(22,077)
41,001
4,138,248
3,277,863
23,869,019
22,525,302
Surplus arising on revaluation of assets has been reported in accordance with the requirements of the Companies Ordinance,
1984 and the directives of the State Bank of Pakistan in a separate account below equity.
Atif R. Bokhari
President &
150
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Consolidated Cash Flow Statement

Note
CASH FLOW FROM OPERATING ACTIVITIES
Less: Dividend income
2013
2012
----------------- (Rupees in 000) ----------------28,965,178
(1,611,917)
(1,282,382)
26,070,879
28,315,979
(539,640)
(2,397,659)
25,378,680
1,799,054
485,822
503,175
982,881
1,346,141
60,509
5,871
(25,171)
181,724
27,337
4,416
219
26,210
5,398,188
31,469,067
1,580,483
447,865
535,756
888,186
3,358,849
168,492
400,524
(1,753,199)
249
(26,370)
319,102
63,078
541
247
190,619
6,174,422
31,553,102
(7,089,713)
(2,802,061)
(30,976,914)
(2,253,056)
(43,121,744)
(10,622,065)
(3,768,461)
(48,372,693)
(1,620,282)
(64,383,501)
Receipts / (payments) on account of staff retirement benefits

Income taxes paid
Net cash flow from operating activities
8,985,309
(28,615,849)
136,739,708
2,391,692
119,500,860
107,848,183
898,737
(8,946,750)
99,800,170
1,736,339
19,737,875
117,989,271
(571,276)
138,892,209
106,061,810
(301,455)
(12,313,242)
93,447,113
CASH FLOW FROM INVESTING ACTIVITIES

Net investment in securities
Dividend income received
Investment in operating fixed assets
Sale proceeds from disposal of operating fixed assets
Net cash outflow from investing activities
(76,894,471)
1,577,139
(3,010,790)
173,943
(78,154,179)
(64,308,594)
583,956
(3,837,432)
99,610
(67,462,460)
CASH FLOW FROM FINANCING ACTIVITIES

Repayments of subordinated loans
Payments in respect of lease obligations
Dividends paid
Net cash outflow from financing activities
(8,653,936)
(1,003)
(11,629,709)
(20,284,648)
(1,997,816)
(752)
(13,465,978)
(15,464,546)
3,859,960
214,399
5,435,702
2,955,864
449,652
13,925,623
116,814,505
102,888,882
122,250,207
116,814,505
Adjustments:
Depreciation
Amortization
Provision for retirement benefits
Reversal of provision in respect of investments disposed off during the year
Provision against off balance sheet items
Amortization of cash flow hedges
Unrealized loss on revaluation of investments classified as held for trading
Finance charges on leased assets
Decrease / (increase) in operating assets

Advances
Other assets (excluding advance taxation)
(Decrease) / increase in operating liabilities
Bills payable
Borrowings
Other liabilities (excluding current taxation)
Exchange differences on translation of net investment in foreign branches and subsidiaries

Exchange differences on translation of net assets attributable to non-controlling interest
Increase in cash and cash equivalents
35
Atif R. Bokhari
President &
Amin Uddin
Director
Seerat Asghar
Director

Chairman
151
Consolidated Statement of Changes in Equity

Attributable to equity shareholders of the Bank

Non-controlling
Total
Interest
Capital reserves
Employee
Unappropriated
Sub total
stock option
profit
Exchange
Cash flow
reserve
translation
hedge reserve
reserve
-------------------------------------------------------------------------------------------------------------- (Rupees in 000) -----------------------------------------------------------------------------------------------------------------Share
Capital
Balance as at December 31, 2011 - as reported
General
reserve
12,241,798
Restatement due to change in accounting

policy - (See note 5.2)
Statutory
reserve
3,000
16,022,214
11,531,541
(61,995)
34,207,654
73,945,411
2,324,385
76,269,796
12,241,798
3,000
16,022,214
11,531,541

(7,345,078)
(7,345,078)
(7,345,078)
Interim cash dividend - March 31, 2012 declared

at Re.1.0 per share
(1,224,180)
(1,224,180)
(1,224,180)
Interim cash dividend - June 30, 2012 declared

at Rs.2.0 per share
(2,448,360)
(2,448,360)
(2,448,360)
Interim cash dividend - September 30, 2012

declared at Rs.2.0 per share
(2,448,360)
(2,448,360)
(2,448,360)
(13,465,978)
(117)
(13,466,095)
(117)
(13,466,095)
2,955,864
41,001
19,158,142
(131,293)
19,158,142
2,865,572
89,297
412,291
19,247,439
3,277,863
2,955,864
41,001
19,026,849
22,023,714
501,588
22,525,302

68,272
68,272
1,087
69,359
1,805,983
12,241,798
3,000
17,828,197
14,487,405
83,845,615
2,827,060
86,672,675

(4,284,629)
(4,284,629)
(4,284,629)
Interim cash dividend - March 31, 2013 declared

at Rs.2.0 per share
(2,448,360)
(2,448,360)
(2,448,360)
Interim cash dividend - June 30, 2013 declared

at Rs.2.0 per share
(2,448,360)
(2,448,360)
(2,448,360)
Interim cash dividend - September 30, 2013

declared at Rs.2.0 per share
(2,448,360)
(2,448,360)
(2,448,360)
5,611
5,611
(11,629,709)
5,611
(11,624,098)
5,611
(11,624,098)
3,859,960
17,769
19,285,513
46,120
19,285,513
3,923,849
445,258
214,399
19,730,771
4,138,248
3,859,960
17,769
19,331,633
23,209,362
659,657
23,869,019
68,566
68,566
1,201
69,767
95,499,445
3,487,918
98,987,363
1,199
(61,995)
1,274,313
1,274,313
1,274,313
1,199
35,481,967
75,219,724
2,324,385
77,544,109
Transactions with owners for the year ended

December 31, 2012
Employee stock option reserve
(117)
(117)
Total comprehensive income for the year ended

December 31, 2012
Profit after taxation for the year ended
December 31, 2012 - (Restated)
Other comprehensive income - net of tax (Restated)
December 31, 2012 - (Restated)
(20,994)
1,082
(1,805,983)
39,305,127
Transactions with owners for the year ended

December 31, 2013
Employee stock option reserve

December 31, 2013
Profit after taxation for the year ended December 31, 2013
Other comprehensive income - net of tax
December 31, 2013

1,867,315
12,241,798
3,000
19,695,512
18,347,365
Balance as at December 31, 2013
(3,225)
6,693
(1,867,315)
45,208,302
Appropriations recommended by the Board of Directors subsequent to the year ended December 31, 2013 are disclosed in note 47 to these consolidated financial statements.
Atif R. Bokhari
President &
152
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Notes to and forming part of the Consolidated Financial Statements

1.
STATUS AND NATURE OF BUSINESS

The Group consists of:
-
Holding Company
United Bank Limited (the Bank) is a banking company incorporated in Pakistan and is engaged in commercial
banking and related services. The Banks registered office and principal office are situated at UBL Building, Jinnah
Avenue, Blue Area, Islamabad and at State Life Building No.1, I. I. Chundrigar Road, Karachi respectively. The
Bank operates 1,283 (2012: 1,278) branches inside Pakistan including 22 (2012: 19) Islamic Banking branches
and 1 (2012: 1) branch in Karachi Export Processing Zone. The Bank also operates 18 (2012: 18) branches
outside Pakistan as at December 31, 2013. The Bank is a subsidiary of Bestway (Holdings) Limited which is
incorporated in the United Kingdom.
The Banks ordinary shares are listed on all three stock exchanges in Pakistan. Its Global Depository Receipts
(GDRs) are on the list of the UK Listing Authority and the London Stock Exchange Professional Securities
Market. These GDRs are also eligible for trading on the International Order Book System of the London Stock
Exchange. Further, the GDRs constitute an offering in the United States only to qualified institutional buyers in
reliance on Rule 144A under the US Securities Act of 1933 and an offering outside the United States in reliance
on Regulation S.
Subsidiary companies
United National Bank Limited (UNBL) - 55% holding

UNBL is an authorized banking institution incorporated in the United Kingdom. The Bank was formed in 2001
from the merger of the UK branches of United Bank Limited and National Bank Limited. The principal activities
of UNBL are to provide retail banking products through its branch network in major cities of the UK, wholesale
banking and treasury services to financial institutions and trade finance facilities to businesses of all sizes. United
National Bank Limited operates under the trade name United Bank UK.
UBL (Switzerland) AG -100% holding

UBL (Switzerland) AG is a commercial bank owned by the Bank. Founded in 1967, its main activities are in credit
operations and related trade financing. UBL (Switzerland) AG previously operated under the name, United Bank
AG Zurich.
United Executors and Trustees Company Limited, Pakistan - 100% holding

United Executors and Trustees Company Limited (the Company) was incorporated in Pakistan in 1965 as an
unlisted public limited company. The registered office of the Company is situated at State Life Building No. 1,
I.I. Chundrigar Road, Karachi. Currently, the Company is engaged in the business of investments.
UBL Fund Managers Limited, Pakistan - 99.45% holding

UBL Fund Managers Limited was incorporated as an unlisted public limited company in Pakistan on April 3,
2001. The Company is licensed to carry out Asset Management and Investment Advisory Services under the
Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and the Non-Banking Finance
Companies and Notified Entities Regulations, 2008. The principal activities of the Company are floating and
managing mutual funds and providing investment advisory services. The registered office of the Company is
situated at State Life Building No. 1, I. I. Chundrigar Road, Karachi.
UBL Bank (Tanzania) Limited - 100% holding

UBL Bank (Tanzania) Limited was incorporated on March 13, 2012 and has commenced operations in May 2013.
It is engaged in providing commercial and retail banking services.
153

2.
BASIS OF PRESENTATION
2.1
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic
modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of traderelated modes of financing include purchase of goods by banks from their customers and immediate resale to them at
appropriate mark-up in price on deferred payment basis. The purchases and sales arising under these arrangements
are not reflected in these consolidated financial statements as such, but are restricted to the amount of facility actually
utilized and the appropriate portion of mark-up thereon. The Islamic Banking branches of the Bank have complied
with the requirements set out under the Islamic Financial Accounting Standards issued by the Institute of Chartered
Accountants of Pakistan and notified under the provisions of the Companies Ordinance, 1984.
2.2
The financial results of the Islamic Banking branches of the Bank have been included in these consolidated financial
statements for reporting purposes, after eliminating material inter-branch transactions / balances. Key financial figures
of the Islamic Banking branches are disclosed in note 46 to these consolidated financial statements.
3.
STATEMENT OF COMPLIANCE
3.1
These consolidated financial statements have been prepared in accordance with approved accounting standards as
applicable in Pakistan, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance,
1962 and the directives issued by the Securities and Exchange Commission of Pakistan (SECP) and the SBP.
Approved accounting standards comprise of International Financial Reporting Standards (IFRS) and interpretations
issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued
by the Institute of Chartered Accountants of Pakistan. Wherever the requirements of the Companies Ordinance,
1984, the Banking Companies Ordinance, 1962 or the directives issued by the SECP and the SBP differ with the
requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984, the Banking Companies
Ordinance, 1962 or the said directives prevail.
3.2
The SBP, vide BSD Circular letter No. 10, dated August 26, 2002 has deferred the applicability of International
Accounting Standard 39, Financial Instruments: Recognition and Measurement and International Accounting
Standard 40, Investment Property for banking companies till further instructions. Further, according to the notification
of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, IFRS 7, Financial Instruments: Disclosures has not
been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the
preparation of these consolidated financial statements. However, investments have been classified and valued in
accordance with the requirements of various circulars issued by the SBP.
3.3
Standards, interpretations and amendments to approved accounting standards that are not yet effective
The following revised standards, amendments and interpretations with respect to the approved accounting standards
would be effective from the dates mentioned below against the respective standard or interpretation:
Effective date (annual
periods beginning on or
after)
Standard, Interpretation or Amendment
IFRIC 21- An interpretation on the accounting for levies imposed by governments
January 01, 2014
IAS 32
- Offsetting Financial Assets and Financial Liabilities - (Amendment)
January 01, 2014
IAS 36
- Impairment of Assets - (Amendment)
January 01, 2014
IAS 39
- Financial Instruments: Recognition and Measurement (Amendment)
January 01, 2014
IAS 19
- Employee Benefits (Amendment)
July 01, 2014
The Group expects that the adoption of the above amendments and interpretations will not affect its financial
statements in the period of initial application.
154
Annual Report 2013

In addition to the above amendments and interpretations, improvements to the following accounting standards have
also been issued by the IASB. Such improvements are generally effective for accounting periods beginning on or
after July 01, 2014. The Group expects that the adoption of such improvements to the standards will not affect its
IFRS 2 - Share-based Payment
IFRS 3 - Business Combinations
IFRS 8 - Operating Segments
IAS 16 - Property, plant and equipment - (Amendment)
IAS 38 - Intangible Assets - (Amendment)
IAS 24 - Related Party Disclosures
IAS 40 - Investment Property
The Group expects that the adoption of such improvements to the standards will not have any material impact on the
Groups financial statements in the period of initial application.
The following new standards have been issued by the IASB, but have not yet been notified by the SECP for application
in Pakistan.
Effective date (annual
periods beginning on
or after)
Standard or Interpretation
IFRS 9 - Financial Instruments: Classification and Measurement
Not yet notified by IASB
IFRS 10 - Consolidated Financial Statements
January 01, 2013
IFRS 11 - Joint Arrangements
January 01, 2013
IFRS 12 - Disclosure of Interests in Other Entities
January 01, 2013
IFRS 13 - Fair Value Measurement
January 01, 2013
4.
BASIS OF MEASUREMENT
4.1
Accounting convention
These consolidated financial statements have been prepared under the historical cost convention except that certain
operating fixed assets have been stated at revalued amounts and certain investments and derivative financial
instruments have been stated at fair value.
4.2
Critical accounting estimates and judgments

The preparation of these consolidated financial statements in conformity with approved accounting standards
requires management to make judgments, estimates and assumptions that affect the reported amounts of assets
and liabilities and income and expenses. It also requires management to exercise judgment in the application of its
accounting policies. The estimates and assumptions are based on historical experience and various other factors
that are believed to be reasonable under the circumstances. These estimates and assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the
revision affects only that period, or in the period of revision and future periods if the revision affects both current and
future periods.
155

Significant accounting estimates and areas where judgments were made by management in the application of
accounting policies are as follows:
i)
ii)
iii)
iv)
v)
vi)
vii)
classification of investments (notes 5.5 and 9)

provision against investments (notes 5.5 and 9.3), lendings to financial institutions (note 8.5) and advances
(notes 5.6 and 10.4)
income taxes (notes 5.9 and 33)
staff retirement benefits (notes 5.11 and 37)
fair value of derivatives (notes 5.16.2 and 20.3)
operating fixed assets, depreciation and amortization (notes 5.7 and 11)
impairment (note 5.8)
5.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1
Basis of consolidation
The consolidated financial statements include the financial statements of the Bank and its subsidiary companies.
Subsidiary companies are fully consolidated from the date on which more than 50% of voting rights are transferred
to the Group or the power to control the company is established and are excluded from consolidation from the date
of disposal or when the control is lost.
The financial statements of subsidiaries are prepared for the same reporting period as the Holding Company, using
accounting policies that are consistent with those of the Holding Company, except for non-banking subsidiaries
in Pakistan which follow the requirements of IAS 39 and IAS 40, and overseas subsidiaries which are required to
comply with local regulations enforced within the respective jurisdictions.
The assets and liabilities of the subsidiaries have been consolidated with those of the Holding Company on a line by
line basis and the carrying value of the Banks investment in the subsidiaries is eliminated against the subsidiaries
share capital and pre-acquisition reserves in these consolidated financial statements.
Non-controlling interest represents that part of the net results of operations and of the net assets of the subsidiaries
that is not owned by the Group.
All material intra-group balances and transactions have been eliminated.
5.2
Change in accounting policy

The Group has adopted the following amended accounting standard which became effective during the year. Other
than this, the accounting policies adopted in the preparation of these consolidated financial statements are consistent
with those of the previous financial year.
IAS 19 Employee Benefits (Revised)
During the year the Group has adopted IAS-19 (Revised) effective from January 1, 2013. The revised standard has
removed the option to defer recognition of actuarial gains and losses (i.e., the corridor approach) for defined benefit
plans. As revised, actuarial gains and losses are recognized in other comprehensive income when they occur.
Amounts recorded in the profit and loss account are limited to current and past service costs, gains or losses on
settlements, and net interest income / expense. All other changes in net defined benefit obligations are recognized
directly in other comprehensive income with no subsequent recycling through the profit and loss account.
The adoption of the revised standard has resulted in a change in the Groups accounting policy related to recognition
of actuarial gains and losses (note 5.11). Consequently, the Group now recognizes all actuarial gains and losses
directly in other comprehensive income with no subsequent recycling through the profit and loss account.
156
Annual Report 2013

The change in accounting policy has been applied retrospectively. The effect of the change in accounting policy on
the current and prior period financial statements has been summarized below:
Impact on Statement of Financial Position

Increase in other assets
(Decrease) in deferred tax assets
Increase in deferred tax liabilities
(Decrease) in other liabilities
Increase in unappropriated profit
Impact on Profit and Loss Account
Increase in administrative expenses
(Decrease) in tax expense
(Decrease) / increase in profit attributable to
non-controlling interest
Impact on Other Comprehensive Income
Recognition of actuarial gain / (loss) - net of deferred tax
(Decrease) in earnings per share (Re. / share)
5.3
2013
2012
2011
---------------------- (Rupees in 000) ----------------------58,964
541,407
(1,487,856)
1,005,413
1,595,173
577,939
(56,081)
1,073,315
194,954
(56,487)
94,467
(62,122)
(15,103)
37,361
46,120
15,103
(131,293)
(37,361)
(0.10)
(0.06)
1,744,154
(686,170)
(216,329)
1,274,313

Cash and cash equivalents for the purpose of the cash flow statement consist of cash and balances with treasury
banks and balances with other banks.
5.4
Lendings to / borrowings from financial institutions

The Group enters into transactions of reverse repos and repos at contracted rates for a specified period of time.
These are recorded as under:
5.4.1
Purchase under resale agreements

Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions.
The differential between the purchase price and the resale price is amortized over the period of the agreement and
recorded as income.
Securities held as collateral are not recognized in the consolidated financial statements, unless these are sold to third
parties, in which case the obligation to return them is recorded at fair value as a trading liability under borrowings
from financial institutions.
5.4.2
Sale under repurchase agreements

Securities sold subject to a repurchase agreement (repo) are retained in the consolidated financial statements as
investments and the counterparty liability is included in borrowings from financial institutions. The differential between
the sale price and the repurchase price is amortized over the period of the agreement and recorded as an expense.
5.5
Investments
Investments of the Group, other than investments in associates, are classified as held for trading, held to maturity
and available for sale.
Held for trading
These are securities which are either acquired for generating a profit from short-term fluctuations in market prices,
interest rate movements and dealers margin, or are securities included in a portfolio in which a pattern of short term
profit taking exists.
157

Held to maturity
These are securities with fixed or determinable payments and fixed maturities, in respect of which the Group has the
positive intent and ability to hold to maturity.
Available for sale
These are investments, other than those in subsidiaries and associates, that do not fall under the held for trading or
held to maturity categories.
Initial measurement
All regular way purchases and sales of investments are recognized on the trade date, i.e., the date that the Group
commits to purchase or sell the investment. Regular way purchases or sales are purchases or sales of investments
that require delivery of investments within the time frame generally established by regulation or convention in the
market place.
Investments are initially recognized at fair value which, in the case of investments other than held for trading, includes
transaction costs associated with the investments. Transaction costs on investments held for trading are expensed
as incurred.
Subsequent measurement
Held for trading
These are measured at subsequent reporting dates at fair value. Gains and losses on re-measurement are included
in the profit and loss account.
Held to maturity
These are measured at amortized cost using the effective interest rate method, less any impairment loss recognized
to reflect irrecoverable amounts.
Available for sale
Quoted securities classified as available for sale investments are measured at subsequent reporting dates at fair
value. Any surplus / deficit arising thereon is kept in a separate account shown in the statement of financial position
below equity and is taken to the profit and loss account when realized upon disposal or when the investment is
considered to be impaired.
Unquoted equity securities are valued at the lower of cost and break-up value. The break-up value of these securities
is calculated with reference to the net assets of the investee company as per the latest available audited financial
statements. A decline in the carrying value is charged to the profit and loss account. A subsequent increase in
the carrying value, upto the cost of the investment, is credited to the profit and loss account. Investments in other
unquoted securities are valued at cost less impairment, if any.
Provisions for diminution in the value of term finance certificates and Sukuks are made as per the ageing criteria
prescribed by the Prudential Regulations issued by the SBP. Provisions for diminution in the value of other securities
are made for impairment, if any.
Associates
Associates are entities over which the Group has a significant influence, but control does not exist.
Investments in associates are accounted for using the equity method of accounting. Under the equity method, the
investment in the associate is initially recognised at cost and the carrying amount is increased or decreased to
recognise the investors share of the profit or loss of the investee subsequent to the date of acquisition. The increase
/ decrease in the share of profit or loss of associates is accounted for in the consolidated profit and loss account.
The Group applies equity accounting for UBL Insurers Limited, Oman United Exchange Company Limited, Khushhali
Bank Limited, DHA Cogen Limited and its investments in mutual funds managed by UBL Fund Managers Limited.
158
Annual Report 2013

5.6
Advances
Advances are stated net of specific and general provisions which are charged to the profit and loss account. Specific
provisions against domestic advances and general provision against domestic consumer loans are determined on
the basis of the Prudential Regulations and other directives issued by the SBP. General and specific provisions
pertaining to overseas advances are made in accordance with the requirements of the regulatory authorities of
the respective countries. If circumstances warrant, the Group, from time to time, makes general provisions against
weaknesses in its portfolio on the basis of managements estimation.
Advances are written off when there is no realistic prospect of recovery. The amount so written off is a book entry and
does not necessarily prejudice to the Banks right of recovery against the customer.
The Bank determines write-offs in accordance with the criteria prescribed by the SBP vide BPRD Circular No. 06
dated June 05, 2007.
5.7
Operating fixed assets and depreciation
5.7.1
Owned
Property and equipment, other than land (which is not depreciated) and capital work-in-progress, are stated at cost
or revalued amount less accumulated depreciation and accumulated impairment losses (if any). Land is carried at
revalued amount less impairment losses while capital work-in-progress is stated at cost less impairment losses. The
cost and the accumulated depreciation of property and equipment of foreign branches include exchange differences
arising on currency translation at the year-end rates of exchange.
Depreciation is calculated so as to write off the depreciable amount of the assets over their expected useful lives at
the rates specified in note 11.2 to these consolidated financial statements. The depreciation charge for the year is
calculated on a straight line basis after taking into account the residual value, if any. The residual values and useful
lives are reviewed and adjusted, if appropriate, at each statement of financial position date.
Depreciation on additions is charged from the month the asset is available for use. No depreciation is charged in the
month of disposal.
Land and buildings are revalued by professionally qualified valuers with sufficient regularity to ensure that their net
carrying value does not differ materially from their fair value. A surplus arising on revaluation is credited to the surplus
on revaluation of fixed assets account. Any deficit arising on subsequent revaluation of fixed assets is adjusted
against the balance in the above-mentioned surplus account as allowed under the provisions of the Companies
Ordinance, 1984. The surplus on revaluation of fixed assets, to the extent of incremental depreciation, is transferred
to unappropriated profit.
Gains and losses on sale of fixed assets are included in the profit and loss account, except that the related surplus
on revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profit.
Major renewals and improvements are capitalized and the assets so replaced, if any, are retired. Normal repairs and
maintenance are charged to the profit and loss account as and when incurred.
5.7.2
Leased (Ijarah)
Assets leased out under Ijarah are stated at cost less accumulated depreciation and accumulated impairment losses,
if any. Assets under Ijarah are depreciated over the term of the lease.
Ijarah income is recognized on an accrual basis.
5.7.3
Finance lease
Assets held under finance leases are initially recorded at the lower of the present value of minimum lease payments
under the lease agreements and the fair value of the leased assets. The related obligations under the lease, net of
financial charges allocated to future periods, are shown as a liability.
The financial charges are allocated to accounting periods in a manner so as to provide a constant periodic rate of
return on the outstanding liability.
Depreciation on assets held under finance leases is charged in a manner consistent with that for depreciable assets
which are owned by the Group.
159

5.7.4
Intangible assets
Intangible assets are stated at cost less accumulated amortization and accumulated impairment losses, if any. The
cost and the accumulated amortization of intangible assets of foreign branches include exchange differences arising
on currency translation at the year-end rates of exchange. Amortization is calculated so as to write off the amortizable
amount of the assets over their expected useful lives at the rates specified in note 11.3 to these consolidated financial
statements. The amortization charge for the year is calculated on a straight line basis after taking into account
the residual value, if any. The residual values and useful lives are reviewed and adjusted, if appropriate, at each
statement of financial position date. Amortization on additions is charged from the month the asset is available for
use. No amortization is charged in the month of disposal.
Gains and losses on sale of intangible assets are included in the profit and loss account.
5.8
Impairment
Impairment of available for sale equity investments
Available for sale equity investments are impaired when there has been a significant or prolonged decline in their
fair value below their cost. The determination of what is significant or prolonged requires judgment. In making this
judgment, the Bank evaluates, among other factors, the normal volatility in share price.
Impairment in investments in associates
The Group considers that a decline in the recoverable value of the investment in an associate below its cost may be
evidence of impairment. Recoverable value is calculated as the higher of fair value less costs to sell and value in use.
An impairment loss is recognized when the recoverable value falls below the carrying value and is charged to the
profit and loss account. A subsequent reversal of an impairment loss, upto the cost of the investment in the subsidiary
or the associate, is credited to the profit and loss account.
Impairment in non-financial assets (excluding deferred tax)
The carrying amounts of non-financial assets are reviewed at each reporting date for impairment whenever events
or changes in circumstances indicate that the carrying amounts of these assets may not be recoverable. If such
indication exists, and where the carrying value exceeds the estimated recoverable amount, assets are written down
to their recoverable amount. The resulting impairment loss is charged to the profit and loss account except for an
impairment loss on revalued assets, which is adjusted against the related revaluation surplus to the extent that the
impairment loss does not exceed the revaluation surplus.
5.9
Taxation
5.9.1
Current
Provision for current taxation is based on taxable income for the year determined in accordance with the prevailing
laws and at the prevailing rates for taxation on income earned from local as well as foreign operations.
5.9.2
Prior years
The taxation charge for prior years represents adjustments to the tax charge relating to prior years, arising from
assessments and changes in estimates made during the current year.
5.9.3
Deferred
Deferred tax is recognized using the liability method on all major temporary differences between the amounts attributed
to assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is
calculated at the rates that are expected to apply to the period when the differences are expected to reverse, based
on tax rates that have been enacted or substantively enacted at the statement of financial position date.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available
against which the assets can be utilized.
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to
the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred
tax asset to be utilized.
160
Annual Report 2013

The Bank also recognizes a deferred tax asset / liability on the cash flow hedge reserve and on the deficit / surplus
on revaluation of fixed assets and securities which is adjusted against the cash flow hedge reserve or against the
related deficit / surplus in accordance with the requirements of IAS 12, Income Taxes.
5.10
Provisions
Provisions are recognized when the Bank has a legal or constructive obligation as a result of past events which
makes it probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the
amount can be made.
Provision against identified non-funded losses is recognized when intimated and reasonable certainty exists that the
Bank will be required to settle the obligation. The provision is charged to the profit and loss account net of expected
recovery and the obligation is classified under other liabilities.
Provisions are reviewed at each statement of financial position date and are adjusted to reflect the current best
estimate.
5.11
Staff retirement and other benefits
5.11.1
The Bank
The Bank operates the following staff retirement schemes for its employees:
a)
For new employees and for those who opted for the below mentioned conversion option introduced in 2001,
the Bank operates
- an approved contributory provident fund (defined contribution scheme); and
- an approved gratuity scheme (defined benefit scheme).
b)
For employees who have not opted for the conversion option introduced in 2001, the Bank operates
- an approved non-contributory provident fund in lieu of the contributory provident fund; and
- an approved funded pension scheme, introduced in 1986 (defined benefit scheme).
In 2001, the Bank modified the pension scheme and introduced a conversion option for employees covered under
option (b) above to move to option (a). This conversion option ceased on December 31, 2003.
The Bank also operates a contributory benevolent fund for all its eligible employees (defined benefit scheme).
Annual contributions towards defined benefit schemes are made on the basis of actuarial advice using the Projected
Unit Credit Method.
For the defined contribution scheme, the Bank pays contributions to the fund on a periodic basis. The Bank has no
further payment obligation once the contributions have been paid. The contributions are recognized as an expense
when the obligation to make payments to the fund has been established. Prepaid contributions are recognized as an
asset to the extent that a cash refund or a reduction in future payments is available.
Other benefits
a)
Employees' compensated absences

The Bank makes provisions for compensated vested and non-vested absences accumulated by its eligible
employees on the basis of actuarial advice under the Projected Unit Credit Method.
b)
Post retirement medical benefits (defined benefit scheme)

The Bank provides post retirement medical benefits to eligible retired employees. Provision is made on the
basis of actuarial advice under the Projected Unit Credit Method.
c)
Employee motivation and retention scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in
respect of the scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme
relates.
161

Actuarial gains and losses
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized
in other comprehensive income when they occur with no subsequent recycling through the profit and loss account.
Actuarial gains and losses pertaining to long term compensated absences are recognized in the profit and loss
account immediately.
5.11.2
United National Bank Limited (UNBL)

Defined benefit scheme
UNBL operates a pension scheme (defined benefit scheme) for certain staff. This scheme is closed for new members
and the accrual of benefits has ceased from January 1, 2010. Gains and losses on settlements and curtailments
are charged to the profit and loss account. The interest cost and the expected return on assets are included in other
liabilities and other assets. Actuarial gains and losses are recognised immediately in other comprehensive income.
The defined benefit scheme is funded, with the assets of the scheme held separately from those of UNBL, in
separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities are measured
based on actuarial valuations using the Projected Unit Credit Method. The actuarial valuations are obtained at least
triennially and are updated at each statement of financial position date.
Defined contribution scheme
UNBL operates a defined contributory pension scheme. The contribution payable in the year in respect of pension
costs and other post retirement benefits is charged to the profit and loss account. Differences between the contribution
payable in the year and contribution actually paid are shown as either accruals or prepayments in the statement of
financial position.
5.11.3
UBL Fund Managers Limited (UFML)

Defined benefit plan
UFML operates an approved funded gratuity scheme for all employees. Annual contributions to the fund are made
on the basis of actuarial advice using the Projected Unit Credit Method. Actuarial gains and losses arising from
experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income when
they occur with no subsequent recycling through the profit and loss account.
UFML operates an approved contributory provident fund (defined contribution scheme) for all eligible employees.
Employee Stock Option Scheme
UBL Fund Managers provides an incentive scheme for its top performing employees in the form of share options
under the Employee Stock Option Scheme (ESOS). The scheme has been approved by the SECP.
5.11.4
UBL (Switzerland) AG
UBL (Switzerland) AG maintains a contribution-oriented pension scheme for employees who have reached the age
of 25. It bears a large share of the costs of the occupational pension plan for all employees as well as their surviving
dependants pursuant to legal requirements. The employee benefit obligations and the assets serving as coverage
are outsourced to a collective insurance firm. The organization, management and financing of the pension plan
comply with legal regulations, the deed of foundation and the applicable regulations of the benefit plan.
5.11.5
UBL Bank (Tanzania) Limited

All eligible employees are members of the Public Pension Fund (PPF) or National Social Security Fund (NSSF). The
fund is a defined contribution scheme with the bank having no legal or constructive obligation to pay further top-up
contributions.
162
Annual Report 2013

5.12
Subordinated loans
Subordinated loans are initially recorded at the amount of proceeds received. Mark-up accrued on subordinated
loans is recognised separately as part of other liabilities and is charged to the profit and loss account over the period
on an accrual basis.
5.13
5.14
Borrowings / deposits
a)
Borrowings / deposits are recorded at the amount of proceeds received.
b)
The cost of borrowings / deposits is recognized on an accrual basis as an expense in the period in which
it is incurred.
Revenue recognition
Revenue is recognized to the extent that the economic benefits associated with a transaction will flow to the Group and
the revenue can be reliably measured. The following recognition criteria must be met before revenue is recognized.
5.14.1
Advances and investments

Mark-up / return / interest on performing advances and investments is recognized on a time proportionate basis over
the term of the advances and investments. Where debt securities are purchased at a premium or discount, such
premium / discount is amortized through the profit and loss account over the remaining period of maturity of the debt
securities.
Interest or mark-up recoverable on non-performing or classified advances and investments is recognized on a
receipt basis.
5.14.2
Dividend income
Dividend income is recognised when the right to receive the dividend is established.
5.14.3
Fee, brokerage and commission

Fee, brokerage and commission income is recognized on an accrual basis.
5.14.4
Grants
Grants received are recorded as income when the right to receive the grant, based on the related expenditure having
been incurred, has been established.
5.15
Foreign currencies
5.15.1
Functional and presentation currency

Items included in these consolidated financial statements are measured using the currency of the primary economic
environment in which the Group operates. These consolidated financial statements are presented in Pakistani
Rupees, which is the Groups functional and presentation currency.
5.15.2
Foreign currency transactions

Transactions in foreign currencies are translated to rupees at the foreign exchange rates prevailing on the transaction
date. Monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange
prevailing at the statement of financial position date. Forward foreign exchange contracts and foreign bills purchased
are valued in rupees at the forward foreign exchange rates applicable to their respective maturities.
Non-monetary assets and liabilities in foreign currencies are expressed in rupee terms at the rates of exchange
prevailing at the date of initial recognition of the non-monetary assets / liabilities.
163

5.15.3
Foreign operations and subsidiaries

The assets and liabilities of foreign operations and subsidiaries are translated to rupees at exchange rates prevailing
at the statement of financial position date. The results of foreign operations and subsidiaries are translated at the
average rate of exchange for the year.
5.15.4
Translation gains and losses

Translation gains and losses are taken to the profit and loss account, except those arising on translation of the net
investment in foreign branches and subsidiaries which are taken to capital reserves (Exchange Translation Reserve)
until the disposal of the net investment, at which time these are recognised in the profit and loss account.
5.15.5

Commitments for outstanding forward foreign exchange contracts are disclosed in these consolidated financial
statements at contracted rates. Contingent liabilities / commitments denominated in foreign currencies are expressed
in rupee terms at the rates of exchange prevailing at the statement of financial position date.
5.16
Financial instruments
5.16.1
Financial assets and liabilities

Financial assets and liabilities carried on the statement of financial position include cash and bank balances,
lendings to financial institutions, investments, advances, certain receivables, bills payable, borrowings from financial
institutions, deposits, subordinated loans and certain payables. The particular recognition methods adopted for
significant financial assets and financial liabilities are disclosed in the individual policy notes associated with them.
5.16.2
Derivative financial instruments

Derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is
entered into and are subsequently re-measured at fair value using appropriate valuation techniques. All derivative
financial instruments are carried as assets when their fair value is positive and liabilities when their fair value is
negative. Any change in the fair value of derivative financial instruments during the period is taken to the profit and
loss account.
5.16.3
Hedge accounting
The Group makes use of derivative instruments to manage exposures to interest rate, foreign currency and credit
risks. In order to manage particular risks, the Group may undertake a hedge. The Group applies hedge accounting
for transactions which meet the specified criteria.
At the inception of the hedging relationship, the Bank formally documents the relationship between the hedged item
and the hedging instrument, including the nature of the risk, the objective and strategy for undertaking the hedge
and the method that will be used to assess the effectiveness of the hedging relationship. A formal assessment is
also undertaken to ascertain whether the hedging instrument is expected to be highly effective in offsetting the
designated risk in the hedged item. A hedge is regarded as highly effective if, during the period for which the hedge
is designated, changes in the fair value or cash flows attributable to the hedged item are expected to be offset
by between 80% to 125% by corresponding changes in the fair value or cash flows attributable to the hedging
instrument.
Cash flow hedges
For qualifying cash flow hedges, the fair value gain or loss associated with the effective portion of the cash flow
hedge is recognised initially in the statement of changes in equity, and recycled through the profit and loss account
in the periods when the hedged item will affect profit or loss. Any gain or loss on the ineffective portion of the hedging
instrument is recognised in the profit and loss account immediately.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the hedged item
is ultimately recognised in the profit and loss account.
164
Annual Report 2013

5.16.4
Off setting
Financial assets and financial liabilities are set off and the net amount is reported in the consolidated financial
statements when there is a legally enforceable right to set off and the Group intends to either settle on a net basis,
or to realize the assets and to settle the liabilities simultaneously.
5.17
Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing particular products
or services (business segment), or in providing products or services within a particular economic environment
(geographical segment), and is subject to risks and rewards that are different from those of other segments.
5.17.1
Business segments
(a)
Corporate finance
Corporate finance includes services provided in connection with mergers and acquisitions, project finance and
the underwriting / arrangement of debt and equity instruments through syndications, Initial Public Offerings and
private placements.
(b)
Trading and sales

Trading and sales includes fixed income, equity, foreign exchange, credit, funding, own position securities,
lendings and borrowings and derivatives for hedging and market making.
(c)
Retail banking
Retail banking includes retail and consumer lending and deposits, banking services, cards and branchless
banking.
(d)
Commercial banking
Commercial banking includes project finance, working capital finance, trade finance, import and export,
factoring, leasing, lending, deposits and guarantees.
(e)
Asset management
Asset management includes discretionary and non-discretionary fund management activities in the form of
pooled, segregated, retail, institutional, private equity, open, close ended funds etc.
(f)
Others
Others includes functions of the Group and subsidiaries which cannot be classified in any of the above
segments.
5.17.2
Geographical segments
The Group operates in six geographical regions being:
-
5.18
Pakistan
Middle East
Europe
Africa
Dividends and appropriations to reserves

Dividends and appropriations to reserves are recorded in the year in which these are approved, except appropriations
required by law which are recorded in the period to which they pertain.
5.19
Earnings per share

The Group presents basic and diluted earnings per share (EPS). Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding
during the year.
165

Note
6.
CASH AND BALANCES WITH TREASURY BANKS
2013
2012
----------- (Rupees in 000) -----------
In hand
Local currency
Foreign currency
19,179,235
4,766,259
23,945,494
With State Bank of Pakistan in

Local currency current accounts
Foreign currency deposit account
6.1
6.2
6.3
22,944,148
2,022,787
5,938,134
30,905,069
22,998,175
1,646,896
4,732,230
29,377,301
With other central banks in

Foreign currency deposit accounts
6.4
6.5
18,515,808
1,207,384
19,723,192
17,103,100
2,946,037
20,049,137
24,109,512
91,106
89,591,601
21,377,121
97,749
94,846,802
With National Bank of Pakistan in local currency current accounts

National Prize Bonds
6.1
This represents current accounts maintained with the SBP under the Cash Reserve Requirement of section 22 of the Banking
Companies Ordinance, 1962.
6.2
This represents a US Dollar settlement account maintained with the SBP and current accounts maintained with the SBP to comply
with statutory requirements.
6.3
This represents an account maintained with the SBP to comply with the Special Cash Reserve requirement. The return on this
account is declared by the SBP on a monthly basis and, as at December 31, 2013, carries mark-up at the rate of 0.00% (2012:
0.00%) per annum.
6.4
Deposits with other central banks are maintained to meet the minimum cash reserves and capital requirements pertaining to the
foreign branches and subsidiaries of the Group.
6.5
This represents placements with overseas central banks and carries mark-up at the rate of 0.00% to 0.25% (2012: 0.00% to
0.25%) per annum.
Note
7.
166
10,205,235
4,557,487
14,762,722
BALANCES WITH OTHER BANKS
2013
2012
------------ (Rupees in 000) -----------
Inside Pakistan
In current accounts
In deposit accounts
7.1
158,978
1,597,722
1,756,700
29,718
904,860
934,578
Outside Pakistan
In current accounts
In deposit accounts
7.2
14,785,856
16,116,050
30,901,906
7,101,140
13,931,985
21,033,125
32,658,606
21,967,703
7.1
These carry mark-up at rates ranging from 7.50% to 9.50% (2012: 8.97% to 9.75%) per annum.
7.2
These carry mark-up at rates ranging from 0.06% to 7.00% (2012: 0.01% to 13.25%) per annum and include balances amounting
to Rs. 226.448 million (2012: Rs. 208.872 million), maintained with an overseas bank against the statutory reserves requirement
of a foreign branch.
Annual Report 2013

Note
8.
8.1
LENDINGS TO FINANCIAL INSTITUTIONS

Call money lending
Repurchase agreement lendings
8.2
8.3
8.4
Provision against lendings to financial institutions
8.5
2013
2012
-------------- (Rupees in 000) ------------100,000
13,791,125
16,620,831
30,511,956
(653,918)
29,858,038
6,470,898
16,911,664
23,382,562
(553,728)
22,828,834
15,061,947
15,450,009
30,511,956
8,246,736
15,135,826
23,382,562
Particulars of lendings to financial institutions - gross

In local currency
8.2
This represents unsecured lending carrying mark-up at a rate of 9.70% per annum (2012: nil) and is due to mature by May 2014.
8.3
Securities held as collateral against repurchase agreement lendings

2013
Held by
Group
2012
Further given
as collateral
/ sold
Total
Held by
Group
Further given
as collateral
/ sold
Total
----------------------------------------------------- (Rupees in 000) -----------------------------------------------------Market Treasury Bills
8,723,925
8,723,925
5,067,200
5,067,200
13,791,125
13,791,125
6,470,898
6,470,898
6,470,898
6,470,898
Repurchase agreement lendings carry mark-up at rates ranging from 9.40% to 10.00% (2012: 7.50% to 8.50%) per annum and
are due to mature latest by January 2014. The market value of the securities held as collateral against these lendings amounted to
Rs.14,004.415 million (2012: Rs. 6,474.321 million).
8.4
Lendings pertaining to domestic operations carry mark-up at rates ranging from 0.00% to 11.87% per annum (2012: 0.00% to
12.51% per annum) and are due to mature latest by February 2022. Lendings pertaining to overseas operations carry mark-up at
rates ranging from 0.10% to 5.00% per annum (2012: 0.10% to 4.00% per annum) and are due to mature latest by July 2021.
8.5
This represents provision made against lendings to financial institutions with movement as follows:
2013
2012
------- (Rupees in 000) -----Opening balance
Charge for the year
Reversals
Closing balance
553,728
39,681
65,750
(5,241)
60,509
653,918
356,637
28,599
179,667
(11,175)
168,492
553,728
167

9.
INVESTMENTS
9.1
Investments by type
Note
2013
2012
Given as
Total
Held by Group
Given as
Total
collateral
collateral
------------------------------------------------------------ (Rupees in 000) -------------------------------------------------------------Held by Group

Sukuks
7,401,965
317,933
49,782
21,437
7,791,117
7,401,965
317,933
49,782
21,437
7,791,117
3,797,712
514,070
498,289
102,445
50,866
26,208
4,989,590
3,797,712
514,070
498,289
102,445
50,866
26,208
4,989,590
176,092,538
65,136,963
6,186,752
12,624,436
14,157,245
444,765
243,350
1,921,370
26,815,680
32,479,255
336,102,354
12,054,264
12,054,264
188,146,802
65,136,963
6,186,752
12,624,436
14,157,245
444,765
243,350
1,921,370
26,815,680
32,479,255
348,156,618
78,285,856
63,327,795
9,043,880
9,466,364
6,537,792
430,177
243,176
2,021,204
114,075
14,153,038
36,677,481
220,300,838
44,734,778
44,734,778
123,020,634
63,327,795
9,043,880
9,466,364
6,537,792
430,177
243,176
2,021,204
114,075
14,153,038
36,677,481
265,035,616
41,539,276
38,333,967
6,103,979
300,000
5,045,801
1,774,197
4,939
2,266
155,121
915,371
324,639
229
94,499,785
41,539,276
38,333,967
6,103,979
300,000
5,045,801
1,774,197
4,939
2,266
155,121
915,371
324,639
229
94,499,785
54,799,452
31,273,156
1,626,312
300,000
3,971,848
1,541,205
4,939
4,392
653,947
307,517
211
94,482,979
54,799,452
31,273,156
1,626,312
300,000
3,971,848
1,541,205
4,939
4,392
653,947
307,517
211
94,482,979
2,906,051
543,443
27,356
212,573
51,940
194,253
343,122
162,120
167,037
212,808
103,640
109,348
108,693
83,283
121,674
105,807
842,528
100,071
105,246
211,058
952,451
68,396
7,732,898
446,126,154
12,054,264
2,906,051
543,443
27,356
212,573
51,940
194,253
343,122
162,120
167,037
212,808
103,640
109,348
108,693
83,283
121,674
105,807
842,528
100,071
105,246
211,058
952,451
68,396
7,732,898
458,180,418
2,557,423
6,373,263
524,191
192,062
523,026
190,189
337,613
128,771
132,088
166,951
266,799
102,074
196,855
876,358
68,126
12,635,789
332,409,196
44,734,778
2,557,423
6,373,263
524,191
192,062
523,026
190,189
337,613
128,771
132,088
166,951
266,799
102,074
196,855
876,358
68,126
12,635,789
377,143,974

Preference shares
Sukuks
Debentures
Recovery note
CDC SAARC Fund
Associates
UBL Stock Advantage Fund
UBL Gold Fund
UBL Islamic Principal Preservation Fund I
UBL Islamic Principal Preservation Fund II
UBL Financial Sector Bond Fund
Oman United Exchange Company, Muscat
9.9.1
9.9.2
9.9.3
9.9.4
9.9.5
9.9.6
9.9.7
9.9.8
9.9.9
9.9.10
9.9.11
9.9.12
9.9.13
9.9.14
9.9.15
9.9.16
9.9.17
9.9.18
9.9.19
9.9.20
9.9.21
9.9.22
9.9
9.3
Investments - net of provision

Surplus / (deficit) on revaluation of available
for sale securities
Deficit on revaluation of held for
trading securities
Total investments
168
Annual Report 2013
22.2
(1,484,505)
(1,484,505)
(1,420,570)
(1,420,570)
444,641,649
12,054,264
456,695,913
330,988,626
44,734,778
375,723,404
2,159,717
(5,016)
2,154,701
5,129,617
393,416
5,523,033
(4,416)
446,796,950
12,049,248
(4,416)
458,846,198
(534)
336,117,709
45,128,194
(534)
381,245,903

Note
9.2
2013
2012
-------------- (Rupees in 000) -----------
Investments by segment
Foreign securities
Sovereign bonds
CDC SAARC Fund
Recovery note
Other bonds
Ordinary shares
Listed companies
Unlisted companies
Preference shares
Units of Mutual Funds
Listed
Unlisted
Sukuks
Debentures
Investment in associates
9.9
Total investments at cost

9.3
Investments - net of provision

Surplus on revaluation of available for sale securities
Deficit on revaluation of held for trading securities
Total investments
22.2
209,957,884
103,470,930
6,486,752
18,728,415
338,643,981
159,837,863
95,115,021
9,343,880
11,092,676
275,389,440
27,130,159
26,970,801
229
324,639
33,394,626
87,820,454
21,779,935
14,153,038
211
307,517
37,331,428
73,572,129
14,475,178
243,350
14,718,528
7,036,081
243,176
7,279,257
444,765
430,177
164,941
2,399,317
4,617,636
7,016,953
2,836,285
3,259,212
6,095,497
1,795,634
2,266
4,939
1,567,413
4,392
4,939
7,732,898
12,635,789
458,180,418
377,143,974
(1,484,505)
(1,420,570)
456,695,913
375,723,404
2,154,701
5,523,033
(4,416)
458,846,198
(534)
381,245,903
169

9.3
9.3.1
Opening balance
Charge for the year
Reversals
Reversed on disposal
Transfers out - net
Amounts written off
Closing balance
9.3.2

Sukuks
Recovery note
Debentures
Debt securities
Sukuks
Recovery note
Foreign bonds
Debentures
1,484,505
496,390
(95,866)
400,524
(1,753,199)
(12,411)
(583)
1,420,570
373,052
122,687
97,616
43,572
351,991
988,918
362,748
135,616
48,808
40,194
320,180
907,546
57,337
106,406
324,639
4,939
2,266
495,587
1,484,505
66,831
129,345
307,517
4,939
4,392
513,024
1,420,570
373,052
122,687
351,991
847,730
362,748
135,616
320,180
818,544
154,953
106,406
324,639
43,572
4,939
2,266
636,775
1,484,505
115,639
129,345
307,517
40,194
4,939
4,392
602,026
1,420,570
Unrealized (loss) / gain on revaluation of held for trading securities

Mutual Funds
170
63,589
(57,718)
5,871
2,734,622
51,617
Provision for diminution in value of investments by segment

Equity securities
Listed companies
Unlisted companies
Preference shares
9.4
1,420,570
58,064
Provision for diminution in value of investments by type

Foreign bonds
Preference shares
9.3.3
2013
2012
------------- (Rupees in 000) ------------
Annual Report 2013
(1,110)
(5,280)
1,974
(4,416)
575
(1,105)
2,766
(2,886)
109
(541)

9.5
Investments include securities which are held by the Bank to comply with the statutory liquidity requirements as set out under
Section 29 of the Banking Companies Ordinance, 1962.
9.6
Investments include Rs.282.000 million (2012: Rs.282.000 million) held by the SBP and National Bank of Pakistan as pledge
against demand loan, TT / DD discounting facilities and foreign exchange exposure limit sanctioned to the Bank and Rs.5 million
(2012: Rs.5 million) held by the Controller of Military Accounts (CMA) under Regimental Fund Arrangements.
9.7
During the year, the Bank has exercised its pledge on shares of DHA Cogen Limited. As a result, the Bank now holds 20.99% of
the issued and paid up shares of DHA Cogen Limited without any consideration having been paid. Consequently, DHA Cogen
Limited is considered as an associated company of the Bank from October 9, 2013.
The details of assets, liabilities, revenues and results of the company as of December 31, based on reviewed financial statements
are as follows:
Assets
Liabilities
Revenue
Loss
---------------------------------- (Rupees in 000) ------------------------------DHA Cogen Limited
2013
4,668,118
14,371,096
(1,371,855)
9.8
Information relating to investments required to be disclosed as part of the financial statements under the SBPs BSD Circular No.
4 dated February 17, 2006, and details in respect of the quality of available for sale securities are disclosed in Annexure A to
these consolidated financial statements.
9.9
Investment in associates
9.9.1
2013
2012
----------- (Rupees in 000) ---------
Investment at the beginning of the year

Share of profit
Share of unrealized (deficit) / surplus on assets
Investment at the end of the year
2,557,423
359,724
(11,096)
2,906,051
Percentage holding as at December 31
89.34%
2,332,486
166,953
57,984
2,557,423
88.22%
9.9.1
United Growth and Income Fund is an open ended mutual fund, listed on the Karachi Stock Exchange. Being an open ended
mutual fund, the fund offers units for public subscription on a continuous basis. However, the fund has temporarily suspended
subscriptions for new investors.
9.9.1.2
The details of assets, liabilities, revenues and results of the fund as of December 31, based on reviewed financial statements are
as follows:
Assets
Liabilities
Revenue
Profit
---------------------------------- (Rupees in 000) -------------------------------United Growth and Income Fund
9.9.2

Share of profit
(Redemption) / investment during the year
Dividend received
9.9.2.1
2013
3,272,178
19,360
351,614
401,678
2012
2,907,892
9,023
455,197
199,298
2013
2012
----------- (Rupees in 000) --------6,373,263
285,527
(6,114,375)
(972)
543,443
3.97%
5,049,099
978,536
1,410,303
(1,066,191)
1,516
6,373,263
35.39%
United Liquidity Plus Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual
fund, the fund offers units for public subscription on a continuous basis.
171

9.9.2.2
The details of assets, liabilities, revenues and results of the fund as of December 31, based on reviewed financial statements are as follows:
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Liquidity Plus Fund
9.9.3
2013
13,725,429
46,144
1,439,212
1,168,642
2012
18,032,784
23,614
2,977,399
2,723,346
2013
2012
------------- (Rupees in 000) -------------

Share of profit
(Redemption) / investment during the year
Share of unrealized surplus on assets
524,191
159,877
(656,712)
27,356
1.33%
346,862
133,363
40,614
3,352
524,191
74.49%
9.9.3.1
UBL Shariah Stock Fund is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual
9.9.3.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Shariah Stock Fund
9.9.4
2013
2,130,387
70,080
578,500
645,313
2012
707,572
3,866
205,557
181,807
2013
2012
------------- (Rupees in 000) -------------

Share of profit
Share of unrealized surplus / (deficit) on assets
192,062
9,533
10,978
212,573
163,959
30,788
(2,685)
192,062
28.00%
57.52%
9.9.4.1
United Islamic Income Fund is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. Being an open ended
mutual fund, the fund offers units for public subscription on a continuous basis.
9.9.4.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------United Islamic Income Fund
9.9.5
United Stock Advantage Fund

Share of profit
Redemption during the year
Share of unrealized deficit on assets
172
Annual Report 2013
2013
762,601
3,380
64,695
54,310
2012
345,638
11,741
90,721
55,868
2013
2012
------------- (Rupees in 000) ------------523,026
164,152
(635,238)
51,940
2.35%
388,046
180,403
(32,185)
(13,238)
523,026
36.96%

9.9.5.1
United Stock Advantage Fund is an open ended mutual fund, listed on the Karachi Stock Exchange. Being an open ended mutual fund, the fund
offers units for public subscription on a continuous basis.
9.9.5.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------United Stock Advantage Fund
9.9.6
2013
2,237,038
28,288
815,126
622,790
2012
1,423,624
8,364
614,329
468,720
2013
2012
------------- (Rupees in 000) -------------

Share of profit
Dividend received
190,189
5,376
(1,322)
10
194,253
7.36%
2,734,011
259,119
(2,392,301)
(413,670)
3,030
190,189
5.69%
9.9.6.1
UBL Savings Income Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual fund, the fund
9.9.6.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Savings Income Fund
9.9.7
2013
2,653,339
12,476
263,074
208,085
2012
3,406,366
63,744
651,275
599,662
2013
2012
------------- (Rupees in 000) -------------

Share of profit
Dividend received
337,613
25,239
(20,185)
455
343,122
9.40%
1,630,032
148,721
(1,203,097)
(238,938)
895
337,613
9.22%
9.9.7.1
UBL Islamic Sovereign Fund is an open ended Shariah compliant mutual fund listed on the Islamabad Stock Exchange. Being an open ended
9.9.7.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Islamic Sovereign Fund
2013
3,670,250
18,925
379,702
307,355
2012
3,974,046
312,846
447,168
399,301
173

9.9.8
2013
2012
------------- (Rupees in 000) -------------

Share of profit
128,771
33,203
146
162,120
105,062
23,698
11
128,771
42.53%
57.18%
9.9.8.1
UBL Islamic Retirement Savings Fund is an open ended Shariah compliant pension fund and offers units for public subscription on a continuous
basis.
9.9.8.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Islamic Retirement Savings Fund
9.9.9
2013
360,133
2,589
65,572
64,029
2012
221,882
527
34,018
36,404
2013
2012
------------- (Rupees in 000) -------------

Share of profit
132,088
35,396
(447)
167,037
106,146
25,826
116
132,088
20.86%
37.06%
9.9.9.1
UBL Retirement Savings Fund is an open ended pension fund and offers units for public subscription on a continuous basis.
9.9.9.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Retirement Savings Fund
9.9.10
2013
739,010
6,106
113,260
136,477
2012
342,763
1,010
50,918
58,044
2013
2012
------------- (Rupees in 000) -------------

Investment during the year
Share of profit
166,951
7,955
37,902
212,808
129,979
36,972
166,951
35.45%
34.78%
9.9.10.1
UBL Principal Protected Fund - I is an open ended mutual fund, listed on the Islamabad Stock Exchange. The fund offers units for public subscription
only upto the closure of the initial public offering. The duration of the fund was 24 months from February 3, 2012. The fund has subsequently matured
on February 2, 2014.
9.9.10.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Principal Protected Fund - I
174
Annual Report 2013
2013
601,915
1,537
132,715
128,504
2012
480,502
536
103,328
100,880

2013
2012
------------- (Rupees in 000) ------------9.9.11

Share of profit
100,000
3,640
103,640
12.32%
9.9.11.1
UBL Principal Protected Fund - II is an open ended mutual fund, listed on the Islamabad Stock Exchange. The fund offers units for public subscription
only upto the closure of the initial public offering. The duration of the fund is 24 months from July 23, 2013.
9.9.11.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Principal Protected Fund - II
9.9.12
2013
849,980
8,547
32,099
29,580
2013
2012
------------- (Rupees in 000) -------------

Share of profit
Dividend received
266,799
1,977
(158,626)
(802)
109,348
9.48%
3,058,294
336,001
(2,811,330)
(321,403)
5,237
266,799
11.79%
9.9.12.1
UBL Government Securities Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual fund, the
fund offers units for public subscription on a continuous basis.
9.9.12.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Government Securities Fund
9.9.13
2013
1,183,589
29,990
142,067
116,242
2012
3,272,408
1,009,283
610,735
545,228
2013
2012
------------- (Rupees in 000) -------------

Share of profit
102,074
6,619
108,693
100,000
2,074
102,074
15.31%
46.60%
9.9.13.1
UBL Islamic Cash Fund is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual
9.9.13.2
2013
2012
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------712,517
2,468
25,736
28,520
223,176
4,140
6,870
4,449
175

2013
2012
------------- (Rupees in 000) ------------9.9.14
UBL Gold Fund

Share of loss
100,000
(16,717)
83,283
53.09%
9.9.14.1
UBL Gold Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual fund, the fund offers units for
public subscription on a continuous basis.
9.9.14.2
Assets
Liabilities
Revenue
Loss
----------------------------------------- (Rupees in 000) -------------------------------------UBL Gold Fund
9.9.15
2013
158,085
1,219
(26,363)
(29,716)
2013
2012
------------- (Rupees in 000) -------------
UBL Islamic Principal Preservation Fund - I

Share of profit
100,000
21,674
121,674
13.75%
9.9.15.1
UBL Islamic Principal Preservation Fund - I is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. The fund
offers units for public subscription only upto the closure of the initial public offering.
9.9.15.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Islamic Principal Preservation Fund - I
9.9.16
2013
887,967
2,966
164,219
158,768
2013
2012
------------- (Rupees in 000) -------------
UBL Islamic Principal Preservation Fund - II

Share of profit
100,000
5,807
105,807
10.20%
9.9.16.1
UBL Islamic Principal Preservation Fund - II is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. The fund
offers units for public subscription only upto the closure of the initial public offering.
9.9.16.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Islamic Principal Preservation Fund - II
176
Annual Report 2013
2013
1,047,734
10,773
58,588
56,500

2013
2012
------------- (Rupees in 000) ------------9.9.17

Share of profit
814,856
27,672
842,528
77.45%
9.9.17.1
UBL Asset Allocation Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual fund, the fund
9.9.17.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Asset Allocation Fund
9.9.18
2013
1,099,208
11,335
40,091
40,288
2013
2012
------------- (Rupees in 000) -------------

Share of profit
100,000
71
100,071
79.97%
9.9.18.1
UBL Islamic Asset Allocation Fund is an open ended Shariah compliant mutual fund, listed on the Islamabad Stock Exchange. Being an open ended
9.9.18.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Islamic Asset Allocation Fund
9.9.19
2013
129,655
4,520
326
88
2013
2012
------------- (Rupees in 000) -------------
UBL Financial Sector Bond Fund

Share of profit
100,000
5,246
105,246
39.97%
9.9.19.1
UBL Financial Sector Bond Fund is an open ended mutual fund, listed on the Islamabad Stock Exchange. Being an open ended mutual fund, the
fund offers units for public subscription on a continuous basis.
9.9.19.2
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Financial Sector Bond Fund
2013
265,330
2,042
33,897
25,246
177

2013
2012
------------- (Rupees in 000) ------------9.9.20

Share of profit
Actuarial gain on defined benefit obligations
196,855
14,110
93
211,058
188,637
8,218
196,855
30.00%
30.00%
9.9.20.1
UBL Insurers Limited is an unquoted public company, whose principal objective is to conduct general insurance business.
9.9.20.2
The details of assets, liabilities, revenues and results of UBL Insurers Limited as at December 31, based on audited financial statements are as
follows:
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------UBL Insurers Limited
9.9.21
2013
1,663,010
962,938
444,012
42,505
2012
1,491,474
835,290
386,008
28,130
2013
2012
------------- (Rupees in 000) -------------

Transfer from available for sale investments
Share of profit
Actuarial loss on defined benefit obligations
876,358
79,590
(3,926)
429
952,451
632,485
200,000
43,342
531
876,358
29.69%
29.69%
9.9.21.1
Khushhali Bank Limited is a microfinance bank. The principal objective of the bank is to provide microfinance services and promote social welfare
through community building and social mobilization.
9.9.21.2
The details of assets, liabilities, revenues and results of Khushhali Bank Limited as of December 31, based on audited financial statements are as
follows:
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------Khushhali Bank Limited
9.9.22
2013
13,289,657
10,530,779
2,246,819
363,198
2012
9,953,616
7,464,588
1,731,230
167,941
2013
2012
------------- (Rupees in 000) -------------
Oman United Exchange Company

Share of profit
Dividend received
68,126
16,765
(16,495)
68,396
66,954
19,362
(18,190)
68,126
25.00%
25.00%
9.9.22.1
Oman United Exchange Company LLC (the Company) is incorporated in the Sultanate of Oman as a limited liability company and is primarily
engaged in money changing, issuing of drafts and the purchase and sale of travellers cheques.
9.9.22.2
The details of assets, liabilities, revenues and results of the Company as of December 31, based on reviewed financial statements are as follows:
Assets
Liabilities
Revenue
Profit
----------------------------------------- (Rupees in 000) -------------------------------------Oman United Exchange Company
178
Annual Report 2013
2013
385,725
112,142
200,283
51,762
2012
363,148
90,638
210,992
78,780

10.
ADVANCES
Note
Performing
2013
Non-performing
2012
2013
Total
2012
2013
2012
-------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------Loans, cash credits, running

finances, etc.
In Pakistan
10.2
229,406,045
230,815,522
40,121,889
42,504,171
269,527,934
273,319,693
123,512,396
103,198,334
11,956,981
10,541,017
135,469,377
113,739,351
352,918,441
334,013,856
52,078,870
53,045,188
404,997,311
387,059,044
Payable in Pakistan
27,101,200
19,991,220
2,756,062
5,404,969
29,857,262
25,396,189
Payable outside Pakistan
26,820,425
18,239,209
26,820,425
18,239,209
53,921,625
38,230,429
2,756,062
5,404,969
56,677,687
43,635,398
406,840,066
372,244,285
54,834,932
58,450,157
461,674,998
430,694,442
(44,497,945)
(43,597,349)
(44,497,945)
(43,597,349)
Outside Pakistan
Bills discounted and purchased
Advances - gross
Provision against advances
10.4
- Specific
- General
Advances - net of provision
10.1
(1,893,743)
(1,242,626)
(1,893,743)
(1,242,626)
404,946,323
Particulars of advances - gross
371,001,659
Performing
2013
(20,206)
(1,893,743)
(1,262,832)
(44,497,945)
(43,617,555)
(46,391,688)
(44,860,181)
10,336,987
14,832,602
415,283,310
385,834,261
Non-performing
2012
2013
Total
2012
2013
2012
-------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------10.1.1
10.1.2
10.2
In local currency
248,907,872
249,048,415
42,516,403
47,607,666
291,424,275
296,656,081
157,932,194
123,195,870
12,318,529
10,842,491
170,250,723
134,038,361
406,840,066
372,244,285
54,834,932
58,450,157
461,674,998
430,694,442
Short term
246,780,262
227,458,395
246,780,262
227,458,395
Long term
160,059,804
144,785,890
54,834,932
58,450,157
214,894,736
203,236,047
406,840,066
372,244,285
54,834,932
58,450,157
461,674,998
430,694,442
Non-performing advances include gross advances of Rs.12,541.082 million (2012: Rs.14,554.414 million) and advances net of provision of
Rs.1,697.164 million (2012: Rs.3,124.456 million) which, though restructured and performing, have been placed under non-performing status as
required by the Prudential Regulations issued by the SBP, which require monitoring for at least one year before any upgradation is considered.
179

10.3
Advances include Rs. 54,835 million (2012: Rs. 58,450 million) which have been placed under non-performing status as detailed below:
2013
Category of Classification
Classified advances
Domestic
Overseas
Provision required
Total
Domestic
Overseas
Provision held
Total
Domestic
Overseas
Total
------------------------------------------------------------------------------------- (Rupees in 000) --------------------------------------------------------------------------------------Other assets especially

mentioned *
Substandard
Doubtful
Loss
100,063
100,063
640
640
640
640
1,876,334
2,027,722
3,904,056
310,902
501,219
812,121
310,902
501,219
812,121
1,526,948
3,006,480
4,533,428
206,431
1,515,728
1,722,159
206,431
1,515,728
1,722,159
39,374,606
6,922,779
46,297,385
37,250,604
4,712,421
41,963,025
37,250,604
4,712,421
41,963,025
42,877,951
11,956,981
54,834,932
37,768,577
6,729,368
44,497,945
37,768,577
6,729,368
44,497,945
Total
Domestic
2012
Category of Classification
Classified advances
Domestic
Overseas
Provision required
Total
Domestic
Overseas
Provision held
Overseas
Total
------------------------------------------------------------------------------------- (Rupees in 000) --------------------------------------------------------------------------------------Other assets especially

mentioned *
Substandard
Doubtful
Loss
248,010
248,010
2,138,136
1,693,617
3,831,753
425,466
338,035
763,501
425,466
338,035
763,501
2,540,057
2,847,071
5,387,128
1,148,763
1,191,246
2,340,009
1,148,763
1,191,246
2,340,009
42,982,937
6,000,329
48,983,266
36,264,639
4,229,200
40,493,839
36,264,639
4,229,200
40,493,839
47,909,140
10,541,017
58,450,157
37,838,868
5,758,481
43,597,349
37,838,868
5,758,481
43,597,349
Specific
General
* The Other Assets Especially Mentioned category pertains to agricultural finance and advances to small enterprises.
10.4

2013
Note
Specific
2012
General
Total
Total
----------------------------------------------------- (Rupees in 000) ----------------------------------------------------Opening balance
43,597,349
1,262,832
44,860,181
39,967,562
1,008,694
40,976,256
467,881
98,871
566,752
400,285
58,824
459,109
Charge for the year
5,175,285
576,386
290,497
Reversals
(4,393,152)
782,133
Transfers in - net
Amounts written off
Closing balance
754,617
10.5
(12,378)
564,008
(31,968)
(1,104,035)
44,497,945
1,893,743
5,751,671
5,943,612
(4,405,530)
(2,780,077)
1,346,141
3,163,535
(95,183)
195,314
6,234,109
(2,875,260)
3,358,849
722,649
408,229
408,229
(1,104,035)
(342,262)
(342,262)
46,391,688
43,597,349
1,262,832
44,860,181
10.4.1
General provision represents provision amounting to Rs. 252.592 million (2012: Rs. 264.970 million) against consumer finance portfolio and Rs. 32.942 million (2012: Nil) against
advances to small enterprises as required by the Prudential Regulations issued by the SBP and Rs. 1,560.209 million (2012: Rs. 949.862 million) pertaining to overseas advances to
meet the requirements of the regulatory authorities of the respective countries in which the overseas branches and subsidiaries operate. General provisions also include an amount
of Rs. 48.000 million (2012: Rs. 48.000 million) which the Group carries as a matter of prudence given the current economic environment, and is based on management estimates.
10.4.2
The Bank has availed the benefit of Forced Sale Value (FSV) of mortgaged properties held as collateral against non-performing advances as allowed under
BSD Circular 1 of 2011. Had the benefit under the said circular not been taken by the Bank, the specific provision against non-performing advances would have been higher by
Rs.1,354.730 million (2012: Rs. 3,169.414 million). The FSV benefit availed is not available for the distribution of cash or stock dividend to shareholders.
10.4.3

2013
Specific
General
2012
Total
Specific
General
Total
----------------------------------------------------- (Rupees in 000) ----------------------------------------------------In local currency

180
Annual Report 2013
37,408,028
333,534
37,741,562
37,594,095
312,970
7,089,917
1,560,209
8,650,126
6,003,254
949,862
37,907,065
6,953,116
44,497,945
1,893,743
46,391,688
43,597,349
1,262,832
44,860,181

Note
2013
2012
------------- (Rupees in 000) ----------
10.5
Particulars of write-offs
10.5.1
Against provisions
Directly charged to profit and loss account
10.4
1,104,035
181,724
1,285,759
342,262
319,102
661,364
10.5.2
Write-offs of Rs.500,000 and above - Bank

Write-offs below Rs.500,000 - Bank
Write-offs in subsidiaries
10.6
1,124,571
150,430
10,758
1,285,759
834,700
265,715
1,100,415
10.6
10.6
Details of loan write-offs of Rs.500,000 and above

In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962, the statement in respect of written off
loans or any other financial relief of five hundred thousand rupees or above allowed by the Bank during the year ended December
31, 2013 is given in Annexure B to the unconsolidated financial statements.
Due to disclosure restrictions in the local regulations of foreign subsidiaries, the names of parties written off cannot be disclosed.
Note
10.7
Particulars of loans and advances to executives, Directors,

associated companies etc.
Balance at the beginning of the year
2,329,654
1,868,501
Loans granted during the year

Repayments made during the year
1,079,879
(687,449)
392,430
2,155,149
4,877,233
800,346
(339,193)
461,153
2,329,654
Transfer in
Balance at the end of the year
11.
OPERATING FIXED ASSETS

Intangible assets
11.1
11.1
11.2
11.3
1,950,378
24,619,242
1,468,360
28,037,980
1,840,902
24,115,928
1,504,009
27,460,839
11.1.1
1,298,110
354,703
270,560
27,005
1,950,378
1,006,716
529,907
294,475
9,804
1,840,902
Civil works
Equipment
Software
Advances to suppliers and contractors
11.1.1
2013
2012
------------- (Rupees in 000) ----------
This includes Rs.1,223.088 million (2012: Rs. 820.360 million) in respect of construction of the Head Office building.
181

11.2

Cost / Revaluation
Note At January 1, Additions /
Surplus /
Exchange At December
2013
(deletions) (Deficit) on
/ Other
31, 2013
revaluation adjustments
Net book
At January 1, Charge for
value at
2013
the year /
/ Other
31, 2013
December 31,
(depreciation adjustments
2013
on deletions)
------------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------
Owned
Annual rate
of depreciation %
Freehold land
3,041,776
3,041,776
3,041,776
Leasehold land
11,808,012
121
-
11,808,133
292,914
105
-
293,019
11,515,114
3,345,019
87,246
-
320,526
-
3,752,791
357,592
69,381
-
10,534
-
437,507
3,315,284
2-5
2,201,905
9,693
-
2,211,598
354,980
113,105
-
3,965
-
472,050
1,739,548
5 - 10
Leasehold improvements
2,244,484
398,929
-
39,709
-
2,683,122
977,897
234,190
-
26,729
-
1,238,816
1,444,306
10 - 20
1,253,607
131,254
(3,011)
29,655
-
1,411,505
759,400
104,651
(2,766)
23,232
-
884,517
526,988
10 - 25
Electrical, office and computer

equipment
6,356,837
1,102,551
(45,841)
78,858
-
7,492,405
4,583,007
879,059
(44,497)
98,749
-
5,516,318
1,976,087
10 - 67
403,837
49,647
(33,481)
5,744
-
425,747
198,492
63,178
(31,018)
3,937
-
234,589
191,158
20 - 25
1,399,397
360,857
(394,956)
3,602
-
1,368,900
416,934
334,944
(250,235)
501,643
867,257
20 - 33.33
Vehicles
Assets held under operating lease
Ijarah assets
11.8
Assets held under finance lease

Vehicles
2013
2,727
2,727
457
546
1,003
1,724
32,057,601
2,130,484
487,908
34,198,704
7,941,673
1,799,054
167,251
9,579,462
24,619,242
(477,289)
(328,516)
Cost / Revaluation
Note At January 1, Additions /
Surplus /
2012
(deletions) (Deficit) on
/ Other
31, 2012
revaluation adjustments
Freehold land
3,041,776
11,782,784
25,121
3,091,338
60,873
-
(168,777)
361,585
-
2,167,214
24,421
-
Leasehold improvements
1,936,497
259,141
-
1,117,890
Electrical, office and computer

equipment
Leasehold land
3,041,776
292,822
92
292,914
11,515,098
3,345,019
267,089
57,033
-
33,470
-
357,592
2,987,427
2-5
10,270
-
2,201,905
240,696
111,774
-
2,510
-
354,980
1,846,925
5 - 10
48,846
-
2,244,484
748,436
205,264
-
24,197
-
977,897
1,266,587
10 - 20
137,198
(20,332)
18,851
-
1,253,607
666,612
95,041
(19,043)
16,790
-
759,400
494,207
10 - 25
5,411,056
971,983
(98,923)
72,721
-
6,356,837
3,832,946
785,320
(97,228)
61,969
-
4,583,007
1,773,830
10 - 67
387,381
47,548
(36,235)
5,143
-
403,837
167,487
56,946
(29,324)
3,383
-
198,492
205,345
20 - 25
732,087
892,403
(205,926)
(19,167)
1,399,397
290,867
268,648
(142,581)
416,934
982,463
20 - 33.33
2,727
-
2,727
457
457
2,270
29,668,023
2,421,415
517,523 32,057,601
6,506,955
1,580,483
142,411
7,941,673
24,115,928
(361,416)
(168,777)
(288,176)
Assets held under finance lease

Vehicles
2012
Annual rate
of depreciation %
3,041,776
11.8
Annual Report 2013
20
107 11,808,012
Vehicles
Assets held under operating lease
Ijarah assets
2012
Net book
At January 1, Charge for
value at
2012
the year /
/ Other
31, 2012
December 31,
(depreciation adjustments
2012
on deletions)
----------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------
Owned
182
2013
(19,167)
20

11.3
Intangible assets
2013
Net book
value at
At January
Additions /
Exchange
At
At January
Charge for
Exchange
At
December
1, 2013
(deletions)
/ other
December
1, 2013
the year /
/ other
December
31,
2013
adjustments
31, 2013
(reversal on adjustments
31, 2013
deletion)
------------------------------------------------------------------------------- (Rupees in 000) -------------------------------------------------------------------------------------Cost
Software
3,215,880
447,193
(8)
26,451
-
3,689,516
1,711,871
485,822
(8)
23,471
-
2,221,156
1,468,360
2012
Net book
value at
At January
Additions /
Exchange
At
At January
Charge for
Exchange
At
December
/ other
December
1, 2012
(deletions)
/ other
December
1, 2012
the year /
31,
2012
adjustments
31, 2012
(reversal on adjustments
31, 2012
deletion)
------------------------------------------------------------------------------- (Rupees in 000) -------------------------------------------------------------------------------------Cost
Software
11.4
2,807,862
375,497
(5,344)
37,865
3,215,880
1,238,288
447,865
(5,136)
30,854
1,711,871
1,504,009
Annual rate
of amortization %
10 - 33.33
Annual rate
of amortization %
10 - 33.33
Revaluation of properties
The properties of the Bank were last revalued by independent professional valuers as at December 31, 2009. The revaluation was carried out by M/s. Pirsons Chemicals Engineering (Private) Limited,
M/s. Sadruddin Associates, M/s. Maricon Consultants (Private) Limited and M/s. Engineering Pakistan International (Private) Limited on the basis of professional assessment of present market values
and resulted in an increase in the surplus by Rs. 4,139.592 million.
The properties of UNBL were revalued by independent professional valuers, RONA and Advance Surveyors Limited, as at December 31, 2012. These revaluations were based on present market
values and resulted in a deficit of Rs.168.777 million.
Had there been no revaluation, the carrying amount of revalued assets at December 31 would have been as follows:
2013
2012
---------- (Rupees in 000) --------Freehold land
Leasehold land
11.5
Carrying amount of temporarily idle properties of the Group
11.6
The cost of fully depreciated assets still in use

Electrical, office and computer equipment
Vehicles
11.7
782,581
196,217
1,747,980
204,724
782,581
196,201
1,614,271
216,912
73,331
166,230
297,831
3,054,574
72,448
3,424,853
351,418
2,605,310
72,408
3,029,136
Details of disposals of operating fixed assets

The information relating to operating fixed assets disposed off during the year is given in Annexure C and is an integral part of these consolidated financial statements.
11.8
The Islamic Banking branches of the Bank enter into Ijarah transactions with customers, mainly in respect of property, plant and equipment and vehicles.
The Ijarah payments receivable from customers for each of the following periods under the terms of the respective arrangements are given below:
2013
2012
---------- (Rupees in 000) --------Not later than one year
Later than one year but not later than five years
Later than five years
440,815
617,905
-
459,667
694,712
-
1,058,720
1,154,379
183

Note
12.
OTHER ASSETS
Income / mark-up accrued in local currency
Income / mark-up accrued in foreign currency
Advance taxation - net of provision for taxation
Receivable on account of encashment of savings certificates
Receivable in respect of derivative transactions
Receivable from other banks against telegraphic transfers and demand drafts
Unrealized gain on forward foreign exchange contracts
Rebate receivable - net
Advance against Murabaha
Advance against Ijarah assets
Suspense accounts
Stationery and stamps on hand
Non banking assets acquired in satisfaction of claims
Advances, deposits, advance rent and other prepayments
Advance against Pre-IPO investment
Others
Provision held against other assets
Other assets - net of provision
12.1
2013
2012
------------ (Rupees in 000) ----------
12.1
20.3.1 & 24.2
12.3
12.2
11,308,074
3,492,924
14,800,998
6,297,503
60,977
6,862
18,033
2,300,968
2,795,731
1,070,602
344,712
17,498
27,110
361,081
177,636
2,063,329
1,042,205
2,000,870
33,386,115
(4,029,132)
29,356,983
11,558,334
2,646,202
14,204,536
5,877,007
1,600,550
14,586
18,033
881,653
1,083,718
792,293
489,131
17,531
110,382
455,821
211,031
1,004,226
1,953,721
1,048,193
364,000
1,681,534
31,807,946
(3,645,930)
28,162,016
The Income Tax returns of the Bank have been filed up to the tax year 2013 (accounting year ended 2012) and were deemed to
be assessed under section 120 of the Income Tax Ordinance, 2001 (Ordinance) unless amended by the Commissioner of Inland
Revenue.
The income tax authorities have issued amended assessment orders for the tax years 2003 to 2013, and created additional tax
demands of Rs. 9,589 million, which have been fully paid as required under the law. The Bank has filed appeals before the various
appellate forums against these amendments. Where the appellate authorities have allowed relief on certain issues, the assessing
authorities have filed appeals before higher appellate forums. Where the appellate authorities have not allowed relief the Bank has
filed appeals before higher appellate forums. The management of the Bank is confident that the appeals will be decided in favor of
the Bank.
Under the Seventh Schedule to the Ordinance, banks are allowed to claim provisions against advances up to 5% of total advances
for consumer and small and medium enterprises and up to 1% of total advances for remaining advances. Amounts above these limits
are allowed to be claimed in future years. The Bank has booked a deferred tax asset of Rs. 2,365 million (2012: Rs. 3,229 million) in
respect of provisions in excess of the above mentioned limits.
The Bank also carries a tax asset amounting to Rs. 4,114 million (2012: Rs. 4,114 million), representing disallowance of provisions
against advances and off-balance sheet obligations, for the periods prior to the applicability of the Seventh Schedule. The management,
in consultation with its tax advisor, is confident that these would be allowed to the Bank at appellate levels.
The tax returns for Azad Kashmir (AK) Branches have been filed upto the tax year 2013 (financial year 2012) under the provisions
of section 120(1) read with section 114 of the Ordinance and in compliance with the terms of the agreement between banks and the
Azad Kashmir Council in May 2005. The returns filed are considered as deemed assessment orders under the law.
The tax returns for overseas branches have been filed upto the year ended December 31, 2012 under the provisions of the laws
prevailing in the respective countries, and are deemed as assessed unless opened for reassessment.
For all the subsidiaries, income tax returns have been filed up to the accounting year ended December 31, 2012 under the provisions
of the laws prevailing in the respective countries and are deemed as assessed unless opened for reassessment by the tax authorities.
Additionally, for UBL UK and UBL (Switzerland) AG, tax clearance has been issued till the accounting years 2011 and 2012,
respectively. There are no material tax contingencies in any of the subsidiaries.
184
Annual Report 2013

Note
12.2
2013
2012
----------- (Rupees in 000) ------------

Opening balance
Charge for the year
Reversals
30
Transfers in - net
Amounts written off
Closing balance
3,645,930
157,437
2,847,765
99,960
49,947
(23,737)
26,210
213,940
(23,321)
190,619
975,001
(775,446)
4,029,132
739,139
(231,553)
3,645,930
12.3
The market value of non banking assets acquired in satisfaction of claims is Rs.1,992.818 million (2012: Rs.1,912.625 million).
13.
CONTINGENT ASSETS
There were no contingent assets as at the statement of financial position date.
Note
14.
BILLS PAYABLE
In Pakistan
Outside Pakistan
15.
7,345,784
269,598
7,615,382
33,550,063
7,527,667
41,077,730
62,705,626
6,987,953
69,693,579
29,920,125
11,157,605
41,077,730
61,914,550
7,779,029
69,693,579
10,835,330
40,795
5,950,207
423,958
17,250,290
12,042,846
29,293,136
12,460,384
32,050
3,535,341
822,015
16,849,790
45,064,760
61,914,550
5,033,830
399,584
6,351,180
11,784,594
41,077,730
4,508,819
764
3,269,446
7,779,029
69,693,579
Particulars of borrowings
In local currency
15.2
16,167,273
433,418
16,600,691
BORROWINGS
In Pakistan
Outside Pakistan
15.1
2013
2012
----------- (Rupees in 000) ------------
Details of borrowings
Secured
Borrowings from the State Bank of Pakistan under:
Export refinance scheme
Refinance facility for modernization of SMEs
Long term financing facility
Long term financing under export oriented projects
15.3
15.4
15.5
15.6
Repurchase agreement borrowings
15.7
Unsecured
Call borrowings
Overdrawn nostro accounts
Other borrowings
15.8
15.9
185

15.3
The Bank has entered into an agreement with the SBP for extending export finance to customers. As per the terms of the
agreement, the Bank has granted the SBP the right to recover the outstanding amounts from the Bank at the date of maturity of
the finances by directly debiting the Banks current account maintained with the SBP. These borrowings are repayable within six
months, latest by June 2014. These carry mark-up at a rate of 8.40% per annum (2012: 8.50% per annum).
15.4
These borrowings have been obtained from the SBP under a scheme to finance modernization of Small and Medium Enterprises
by providing financing facilities for setting up of new units, purchase of new plant and machinery for Balancing, Modernization
and Replacement (BMR) of existing units and financing for import / local purchase of new generators upto a maximum capacity of
500 KVA. These borrowings are repayable within a period ranging from 3 years to 10 years, latest by December 2018 and carry
mark-up at a rate of 6.25% per annum (2012: 8.00% per annum).
15.5
These borrowings have been obtained from the SBP for providing financing facilities to exporters for adoption of new technologies
and modernization of their plant and machinery. These borrowings are repayable within a period ranging from 3 years to 10 years,
latest by December 2023. These carry mark-up at rates ranging from 6.50% to 10.10% per annum (2012: 6.50% to 10.10% per
annum).
15.6
These borrowings have been obtained from the SBP for providing financing facilities for import of machinery, plant, equipment
and accessories thereof by export oriented units. These carry mark-up at a rate of 5.00% per annum (2012: 5.00% per annum)
and are repayable latest by July 2016.
15.7
These repurchase agreement borrowings are secured against Market Treasury Bills and carry mark-up at rates ranging from
9.95% to 10.00% per annum (2012: 8.77% to 8.83% per annum). These borrowings are repayable latest by January 2014. The
carrying value of securities given as collateral against these borrowings is given in note 9.1.
15.8
These represent unsecured borrowings relating to domestic and overseas operations. Borrowings pertaining to domestic
operations carry mark-up at rates ranging from 9.65% to 10.00% per annum (2012: Nil) and are repayable latest by May 2014.
Borrowings pertaining to overseas operations carry mark-up at rates ranging from 0.19% to 4.00% per annum (2012: 0.53% to
4.00% per annum) and are repayable latest by June 2014.
15.9
These borrowings carry mark-up at rates ranging from 0.50% to 10.44% per annum (2012: 0.15% to 4.61% per annum), and are
repayable latest by May 2016.
2013
2012
--------------- (Rupees in 000) -------------
16.
DEPOSITS AND OTHER ACCOUNTS

Customers
Fixed deposits
Savings deposits
Sundry deposits
Margin deposits
Current accounts - remunerative
Current accounts - non-remunerative
Financial Institutions
Remunerative deposits
Non-remunerative deposits
16.1
237,103,473
242,577,264
7,662,302
4,066,910
7,371,644
239,318,680
738,100,273
11,636,629
6,000,048
17,636,677
9,467,652
5,217,970
14,685,622
889,525,603
752,785,895
578,764,705
310,760,898
889,525,603
505,586,180
247,199,715
752,785,895
Particulars of deposits and other accounts

In local currency
186
280,279,656
280,813,671
7,083,484
5,601,107
10,709,116
287,401,892
871,888,926
Annual Report 2013

17.
SUBORDINATED LOANS - UNSECURED

Note
Issue date
Tenor
Rate % per annum
Maturity
Frequency
of principal
redemption
2013
2012
--------- (Rupees in 000) ------Term Finance

Certificates - II
March
2005
Term Finance
Certificates - III
17.1
Term Finance
Certificates - IV
17.2
8 years
September 8 years
2006
February
2008
10 years
9.49%
March
2013
6 months
KIBOR+1.70%
For the first five
years, 6 months
KIBOR+0.85% and
for the remaining
term, 6 months
KIBOR+1.35%
Semi Annual
1,999,400
September Semi Annual

2014
665,328
1,330,664
5,989,200
665,328
9,319,264
February
2018
Semi Annual
17.1
These represent listed Term Finance Certificates (TFCs) issued by the Bank. The liability of the Bank is subordinated as to the
payment of principal and profit to all other indebtedness of the Bank (including deposits) and is not redeemable before maturity
without approval of the SBP.
17.2
During the year, the Bank has exercised the call option available under the terms of issuance of the Term Finance Certificates IV
after completing required regulatory requirements. Accordingly the outstanding balance of the said TFC has been redeemed on
August 13, 2013, being the option exercise date.
18.
LIABILITIES AGAINST ASSETS SUBJECT TO FINANCE LEASE

These represent finance leases entered into for the lease of vehicles. At the end of the lease period, the ownership of the leased
assets shall be transferred to the Group on payment of the residual values of the leased assets. The cost of operating and maintaining
the leased assets is borne by the Group. The liabilities are secured by demand promissory notes, security deposits, and the vehicles
which have been obtained under these leasing arrangements. The rate used for discounting future lease payments is 12.69% per
annum (2012: 15.28% per annum). The amount of future minimum lease payments, and the periods during which they become due
are as follows:
2013
Minimum lease
Finance charges
Principal
payments
for future periods
Outstanding
------------------------------ (Rupees in 000) -----------------------------Not later than one year
Later than one year and not later than five years
977
433
1,410
(82)
(3)
(85)
895
430
1,325
2012
Minimum lease
Finance charges
Principal
payments
for future periods
Outstanding
------------------------------ (Rupees in 000) -----------------------------Not later than one year
Later than one year and not later than five years
1,003
1,439
2,442
(229)
(104)
(333)
774
1,335
2,109
As at December 31, 2013 the present value of minimum lease payments is Rs. 1.325 million (2012: Rs. 2.109 million)
187

Note
19.
DEFERRED TAX LIABILITY - NET

19.1
2013
2012
------------- (Rupees in 000) ------------
19.1
1,395,138
856,485
Movement in temporary differences during the year

2013
At January 1,
2013
Recognised in
profit and loss
account
Others
At December
31, 2013
-------------------------------------- (Rupees in 000) ------------------------------------Deductible temporary differences on

- Tax losses recognized by subsidiary
- Provision against off-balance sheet items,
post retirement employee benefits
and advances

- Ijarah financing
185,888
11,306
24,279
(10,976)
-
1,334
(9,568)
25,613
174,912
1,738
6,348,992
6,546,186
(884,077)
(870,774)
74,481
66,247
5,539,396
5,741,659
(5,070,497)
(1,764,610)
(14,371)
(553,193)
(7,402,671)
36,130
(35,560)
570
(334,394)
599,698
265,304
(5,368,761)
(1,164,912)
(14,371)
(588,753)
(7,136,797)
(856,485)
(870,204)
331,551
(1,395,138)
2012
At January 1,
2012
Recognised in
profit and loss
account
Others
At December
31, 2012
-------------------------------------- (Rupees in 000) ------------------------------------Deductible temporary differences on

- Tax losses recognized by subsidiary
- Provision against off-balance sheet items,
post retirement employee benefits
and advances

- Ijarah financing
188
Annual Report 2013
179,593
33,383
6,295
-
5,702,020
5,914,996
538,179
544,474
(22,077)
108,793
86,716
185,888
11,306
6,348,992
6,546,186
(5,106,310)
967,118
(14,371)
(455,936)
(4,609,499)
36,046
(97,257)
(61,211)
(233)
(2,731,728)
(2,731,961)
(5,070,497)
(1,764,610)
(14,371)
(553,193)
(7,402,671)
1,305,497
483,263
(2,645,245)
(856,485)

Note
2013
2012
--------------- (Rupees in 000) -----------20.
OTHER LIABILITIES
Mark-up / return / interest payable in local currency
10,377,497
Mark-up / return / interest payable in foreign currency
798,348
3,383,497
2,990,443
Branch adjustment account
629,933
895,927
Payable against purchase of securities
119,827
51,031
Accrued expenses
Payable under severance scheme

Deferred income
Unearned commission
20.1
Unrealized loss on forward foreign exchange contracts

20.2
20.1
20.3.1 & 24.2
32,563
625,532
578,539
260,258
294,291
630,024
630,717
1,875,902
362,939
2,968,231
2,704,310
150,602
269,034
503,176
535,756
Insurance payable against consumer assets
103,700
82,134
Others
525,234
465,700
23,093,754
20,145,946
630,717
629,736
1,386
1,481
Charge during the year
30
Transfers during the year
249
(2,079)
(749)
630,024
630,717
114,847
Provision for gratuity
37.1.4
152,441
Provision for post retirement medical benefits
37.1.4
930,955
943,927
1,275,654
1,067,421
Deferred liability for outsourced services
110,690
101,373
Deferred liability - overseas
400,088
362,869
Provision for compensated absences
Provision for pension
20.3
32,563
Workers Welfare Fund payable
Opening balance
20.2
9,454,214
907,778
37.2.1
98,403
113,873
2,968,231
2,704,310
Unrealized gain on derivative financial instruments - net

Contract / Notional amount
Note
2013
Unrealised gain - net
2012
2013
2012
------------------------------------------- (Rupees in 000) ------------------------------------ Interest rate swaps
5,723,576
8,059,417
88,555
135,799
10,550,240
12,490,616
105,555
83,494
- FX options
74,468
- Forward sale contracts of government securities
308,867
803
- Cross currency swaps
- Commodity futures
20.3.1
489
16,273,816
20,933,857
194,110
220,097
189

2013
2012
-------------- (Rupees in 000) -------------
Note
20.3.1
Unrealized gain / (loss) on derivative financial instruments - net

Unrealized gain - net
21.
SHARE CAPITAL
21.1
Authorized Capital
2013
12
20
24.2
2012
21.2
2,000,000,000
489,131
(269,034)
220,097
2013
2012
-------------- (Rupees in 000) -------------
-------------- (Number of shares) -------------2,000,000,000
344,712
(150,602)
194,110
20,000,000
Ordinary shares of Rs.10 each
20,000,000
Issued, subscribed and paid-up capital

2013
2012
2013
-------------- (Number of shares) --------------
2012
-------------- (Rupees in 000) ------------Fully paid-up ordinary shares of Rs.10 each
21.3
518,000,000
518,000,000
Issued for cash
5,180,000
5,180,000
706,179,687
706,179,687
Issued as bonus shares
7,061,798
7,061,798
1,224,179,687
1,224,179,687
12,241,798
12,241,798
In 2007, the Bank was admitted to the official list of the UK Listing Authority and to the London Stock Exchange Professional Securities Market for
trading of Global Depository Receipts (GDRs), each representing four ordinary shares issued by the Bank. The GDRs constitute an offering in the
United States only to qualified institutional buyers in reliance on Rule 144A under the U.S Securities Act of 1933 and an offering outside the United
States in reliance on Regulation S.
Holders of GDRs are entitled, subject to the provisions of the depository agreement, to receive dividends, if any, and rank pari passu with other equity
shareholders in respect of such entitlement. However, the holders of GDRs have no voting rights or other direct rights of shareholders with respect
to the ordinary shares underlying such GDRs. Subject to the terms and restrictions set out in the offering circular dated June 25, 2007, the deposited
ordinary shares in respect of which the GDRs were issued may be withdrawn by the GDR holders from the depository facility. Upon withdrawal, the
holders will rank pari passu with other ordinary shareholders in respect of voting powers. As at December 31, 2013, 32,060,348 (2012: 15,286,868)
GDRs, representing 128,241,394 (2012: 61,147,474) shares were in issue.
21.4
Major shareholders (holding more than 5% of total paid-up capital)

2013
Name of shareholders
2012
Number of
Percentage of
Number of
Percentage of
shares held
shareholding
shares held
shareholding
467,611,120
38.20%
467,611,120
38.20%
238,567,381
19.49%
238,567,381
19.49%
93,649,744
7.65%
93,649,744
7.65%
Sir Muhammed Anwar Pervez, OBE, HPk
62,433,163
5.10%
62,433,163
5.10%
67,329,867
5.50%
His Highness Shaikh Nahayan Mabarak Al Nahayan
As at December 31, 2013, ADG held nil % (2012: 10.30%) shareholding (including GDRs) and the Bestway Group (Bestway) held 61.38% (2012:
51.07%) shareholding (including GDRs) of the Bank.
190
Annual Report 2013

Note
22.
SURPLUS ON REVALUATION OF ASSETS - NET OF DEFERRED TAX

Surplus / (deficit) arising on revaluation of assets - net of tax
Fixed assets
- Groups share
- Non-controlling interest
22.1
Securities
- Groups share
- Non-controlling interest
22.2
Deficit arising on revaluation of assets of associates
22.1
10,808,168
503,291
11,311,459
10,947,713
563,051
11,510,764
1,517,922
(528,133)
989,789
(15,464)
12,285,784
3,541,845
216,578
3,758,423
(14,164)
15,255,023
16,581,261
16,687,720
Surplus on revaluation of fixed assets

Surplus on revaluation of fixed assets as at January 1
Revaluation of fixed assets during the year
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax
Related deferred tax liability on incremental depreciation charged
during the year
19.1
Less: Related deferred tax liability on

Revaluation as on January 1
Recognition of deferred tax
Incremental depreciation charged on related assets
19.1
22.2
2013
2012
------------ (Rupees in 000) -----------
204,856
(168,777)
167,723
(69,767)
(69,359)
(36,130)
98,959
16,680,220
(36,046)
(106,459)
16,581,261
5,070,497
334,075
319
(36,130)
5,368,761
11,311,459
5,106,310
233
(36,046)
5,070,497
11,510,764
(147,850)
(402,073)
2,767,281
75,680
(138,337)
2,154,701
(1,164,912)
989,789
626,591
2,692,613
368,511
(1,879)
109,937
1,727,260
5,523,033
(1,764,610)
3,758,423
Surplus / (deficit) on revaluation of available for sale securities

Listed shares
Mutual fund units
Term Finance Certificates, Sukuks, other bonds etc.
Foreign bonds
Related deferred tax liability
19.1
191

2013
2012
------------- (Rupees in 000) -------------23.
23.1
Direct credit substitutes

Contingent liabilities in respect of guarantees given favouring
23.2
Government
3,796,673
2,631,890
3,078,030
4,921,308
Others
3,912,366
3,063,407
10,787,069
10,616,605
81,454,308
72,141,081
5,364,806
4,559,713
Transaction-related contingent liabilities

Contingent liabilities in respect of performance bonds,
bid bonds, warranties, etc. given favouring
Government
Others
23.3
32,724,186
23,303,053
119,543,300
100,003,847
38,995,105
39,716,356
Trade-related contingent liabilities

Contingent liabilities in respect of letters of credit opened favouring
Government
Others
23.4
4,455,647
106,848,480
178,994,589
151,020,483
12,471,155
23,823,493
305,997
Other contingencies
Claims against the Group not acknowledged as debts
Contingency in respect of Workers Welfare Fund
23.5
10,120,833
129,878,651
Commitments to extend credit

The Group makes commitments to extend credit in the normal course of its business but these being revocable commitments do
not attract any significant penalty or expense if the facility is unilaterally withdrawn.
23.6
192
Commitments in respect of forward foreign exchange contracts

Purchase
238,732,897
141,981,927
Sale
202,902,937
112,686,309
Annual Report 2013

2013
2012
------------- (Rupees in 000) -----------23.7
Commitments in respect of derivatives

Interest rate swaps
5,723,576
8,059,417
10,550,240
12,490,616
FX options - purchased
37,234
FX options - sold
37,234
Forward sale of government securities
308,867
Commodity futures
489
1,699,696
2,150,282
23.8
Commitments in respect of capital expenditure
23.9
For contingencies relating to taxation refer note 12.1
24.
DERIVATIVE INSTRUMENTS
Derivatives are a type of financial contract, the value of which is determined by reference to one or more underlying
assets or indices. The major categories of such contracts include forwards, futures, swaps and options. Derivatives
also include structured financial products that have one or more of the characteristics of forwards, futures, swaps
and options.
The Bank, as an Authorized Derivative Dealer (ADD), is an active participant in the Pakistan derivatives market and
offers a wide variety of derivatives products covering both hedging and market making to satisfy customers needs.
Where required, specific approval is sought from the SBP for each transaction.
The authority for approving policies lies with the Board of Directors (BoD) and the Board Risk Management
Committee (BRMC). The Market Risk Committee (MRC) is responsible for ensuring compliance with these policies.
With regard to derivatives, the MRC is authorized to:
-
Review the derivatives business with reference to market risk exposure and assign various limits in accordance
with the risk appetite of the Bank
Review the Derivatives Business Policy and recommend approval to the BRMC / BoD
Review and approve derivatives product programs
Authorize changes in procedures and processes regarding derivatives and structured products
Overall responsibility for derivatives trading activity lies with the Treasury and Capital Markets Group. Measurement
and monitoring of market and credit risk exposure and limits and its reporting to senior management and the
BoD is done by Treasury Middle Office (TMO), which also coordinates with the business regarding approvals
for derivatives risk limits. Treasury Operations records derivatives activity in the Banks books, and handles its
reporting to the SBP.
193

Derivatives risk management
There are a number of risks undertaken by the Group, which need to be monitored and assessed.
Credit risk
Credit risk refers to the risk of non-performance or default by a party to a derivatives transaction, resulting in an
adverse impact on the Groups profitability. Credit risk associated with derivatives transactions is categorized into
settlement risk and pre-settlement risk. Credit proposals for derivatives transactions are approved by the Credit
Committee. The credit exposure of each counterparty is estimated and monitored against approved counterparty
limits by TMO on a daily basis.
Market risk
The Group, as a policy, hedges back-to-back all Options transactions. In addition, the Group does not carry any
exchange risk on its Cross Currency Swaps portfolio as it hedges the exposure in the interbank market. To manage
the interest rate risk of Interest Rate Derivatives, the Group has implemented various limits which are monitored
and reported by TMO on a daily basis.
Liquidity risk
Derivatives transactions, usually being non-funded in nature, do not carry a specific funding liquidity risk.
The liquidity risk arises from the fact that in Pakistan, interest rate derivatives generally have a uni-directional
demand, and no perfect hedge is available. The Group mitigates its risk by limiting the portfolio in terms of tenor,
notional and sensitivity limits, and can also hedge its risk by taking on and off balance sheet positions in the
interbank market, where available.
Operational risk
The staff involved in the trading, settlement and risk management of derivatives are carefully trained to deal with
the complexities involved in the process. Adequate systems and controls are in place to carry out derivatives
transactions smoothly. Each transaction is processed in accordance with the product program or a transaction
memo, which contains detailed guidance on the accounting and operational aspects of the transaction to further
mitigate operational risk. In addition, TMO and the Compliance and Control Department are assigned the
responsibility of monitoring any deviation from policies and procedures. The Groups Audit and Inspection Group
also reviews this function, with a regular review of systems, transactional processes, accounting practices and enduser roles and responsibilities.
The Group uses a derivatives system which provides an end-to-end valuation solution, supports the routine
transactional process and provides analytical tools to measure various risk exposures, carry out stress tests and
sensitivity analysis.
TMO produces various reports on a periodic basis which are reviewed by senior management. These reports
provide details of the derivatives business profile such as outstanding positions, profitability, risk exposures and the
status of compliance with limits.
Commodity price risk
Commodity price risk is the risk that the fair value of future cashflows from commodities transactions will fluctuate
because of changes in market prices (other than those arising from profit risk or currency risk) whether those
changes are caused by factors specific to the individual commodity or by factors affecting similar commodities
traded in the market.
194
Annual Report 2013
195
24.1
Total
Hedging
Market making
With other entities

Market making
With Banks for

Hedging
Market making
Total
Hedging
Market making
With other entities

Market making
With Banks for

Hedging
Market making
Product analysis
2,331,163
3,392,413
5,723,576
3,146,655
2,331,163
245,757
2,576,920
Notional
principal
(Rupees in 000)
4
6
10
4
2
6
Number of
contracts
3,444,084
4,615,333
8,059,417
3,323,884
3,444,084
1,291,449
4,735,533
Notional
principal
(Rupees in 000)
Interest rate swaps
3
5
8
3
1
4
Number of
contracts
Interest rate swaps
10,550,240
10,550,240
102,840
10,447,400
10,447,400
Notional
principal
(Rupees in 000)
10
10
4
4
Number of
contracts
12,490,616
12,490,616
578,516
11,912,100
11,912,100
Notional
principal
(Rupees in 000)
4
4
3
3
Number of
contracts
4
4
8
4
4
Number of
contracts
2013
37,234
37,234
74,468
37,234
37,234
37,234
Notional
principal
(Rupees in 000)
2012
Notional
principal
(Rupees in 000)
FX options
Number of
contracts
FX options
1
1
308,867
308,867
308,867

Number of
Notional
contracts
principal
(Rupees in 000)

Number of
Notional
contracts
principal
(Rupees in 000)
3
3
Number of
contracts
489
489
489
Notional
principal
(Rupees in 000)
Notional
principal
(Rupees in 000)
Commodity futures
Number of
contracts
Commodity futures
3,481,318
17,452,539
20,933,857
4,248,990
3,481,318
13,203,549
16,684,867
Notional
principal
(Rupees in 000)
Total
2,331,163
13,942,653
16,273,816
3,249,495
2,331,163
10,693,157
13,024,320
Notional
principal
(Rupees in 000)
Total

24.2
Maturity analysis of derivatives

2013
Remaining maturity
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
Number of
contracts
2
2
6
2
12
Notional
principal
Unrealized
(Loss)
Gain
Net
------------------------------ (Rupees in 000) ----------------------------4,333,400
6,216,840
3,250,765
2,472,811
16,273,816
Remaining maturity
196
Annual Report 2013
143,304
145,743
55,665
344,712
143,304
(37,749)
81,324
7,231
194,110
2012
Number of
contracts
Upto 1 month
1 to 3 months
3 to 6 months
6 months to 1 year
1 to 2 years
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
(37,749)
(64,419)
(48,434)
(150,602)
1
4
12
3
2
2
2
6
32
Notional
principal
Unrealized
(Loss)
Gain
Net
------------------------------ (Rupees in 000) ----------------------------308,867
22,489
459,584
4,365,750
3,861,950
5,855,800
582,898
5,476,519
20,933,857
(343)
(72,511)
(4,675)
(1,388)
(14,754)
(175,363)
(269,034)
803
11,763
45,841
41
93,967
15,265
321,451
489,131
803
11,763
(343)
(26,670)
(4,634)
92,579
511
146,088
220,097

2013
2012
---------- (Rupees in 000) ---------25.
MARK-UP / RETURN / INTEREST EARNED

On loans and advances to customers
On lendings to financial institutions
Call money lending
Securities purchased under resale agreements
On investments in
On deposits with financial institutions
26.
38,780,390
8,087
416,220
593,503
1,017,810
11,599
330,322
496,519
838,440
554,103
27,203,541
12,420,776
40,178,420
829,522
23,102,020
11,555,922
35,487,464
86,126
75,709,170
273,567
75,379,861
29,623,050
3,357,395
2,227,315
992,047
36,199,807
28,377,452
3,836,423
1,986,813
1,558,402
35,759,090
151,918
561,549
713,467
176,751
40,845
217,596
976,700
976,700
1,335,963
3,026,130
435,338
17,078
452,416
589,464
1,259,476
MARK-UP / RETURN / INTEREST EXPENSED

On deposits
On securities sold under repurchase agreements
On other short term borrowings
On long term borrowings
27.
34,426,814
GAIN ON SALE OF SECURITIES - NET

Ordinary shares
Listed companies
Unlisted companies
Other securities
197

Note
28.
OTHER INCOME
Charges recovered
Grant income
Rent on properties
Income from dealing in derivatives
Gain / (loss) on trading liabilities - net
29.
198
549,571
123,109
177,061
211,115
25,171
41,371
1,127,398
558,144
284,294
161,057
2,965,657
26,370
(2,397)
3,993,125
ADMINISTRATIVE EXPENSES
Salaries, allowances etc.
Charge for compensated absences
Medical expenses
Contribution to defined contribution plan
Charge in respect of defined benefit obligations
Rent, taxes, insurance, electricity etc.
Depreciation
Amortization
Outsourced service charges including sales commission
Communications
Banking service charges
Cash transportation charges
Stationery and printing
Legal and professional charges
Advertisement and publicity
Repairs and maintenance
Travelling
Office running expense
Vehicle expense
Entertainment
Cartage, freight and conveyance
Insurance expense
Training and seminars
Brokerage expenses
Subscriptions
Donations
Non-executive Directors fees
Zakat paid by overseas branch
Miscellaneous expenses
29.1
2013
2012
------------- (Rupees in 000) ------------
29.1
11.2
11.3
29.2
29.3
10,533,310
547,017
481,071
271,324
164,540
3,733,828
1,799,054
485,822
3,111,398
1,100,014
926,545
447,522
566,078
383,906
703,528
1,266,100
257,667
496,359
190,044
181,370
96,626
161,497
81,554
96,655
44,557
107,996
77,237
33,915
98,257
125,778
28,570,569
9,753,429
548,507
442,961
233,063
106,616
3,175,165
1,580,483
447,865
2,286,923
1,024,338
882,119
402,064
533,538
385,012
674,873
1,166,087
287,868
451,408
181,965
158,742
95,907
141,242
77,938
116,239
28,134
68,391
35,136
34,133
84,803
153,480
25,558,429
This includes employee benefits in the form of awards / bonus to all permanent staff including the Chief Executive
Officer and is determined on the basis of employees evaluation and the Groups performance during the
year. The aggregate benefit determined in respect of all permanent staff amounted to Rs. 1,174.609 million
(2012: Rs.1,081.039 million).
Annual Report 2013

29.2
Audit fee - Bank

Audit fee - subsidiaries
Audit fee - EPZ branch
2013
KPMG
BDO
Overseas
Total
Taseer Hadi
Ebrahim
Auditors
& Co.
& Co.
------------------------------------- (Rupees in 000) ------------------------------------6,455
250
408
7,113
6,455
425
2,848
1,602
11,330
34,011
23,425
5,278
397
63,111
46,921
23,850
250
8,126
2,407
81,554
2012
Ernst & Young
BDO
Overseas
Total
Ford Rhodes
Ebrahim
Auditors
Sidat Hyder
& Co.
------------------------------------- (Rupees in 000) ------------------------------------Audit fee - Bank
Audit fee - subsidiaries
Audit fee - EPZ branch
29.3
6,455
250
2,105
3,143
11,953
6,455
425
2,075
2,723
11,678
Details of donations
30,522
19,558
4,210
17
54,307
43,432
19,983
250
8,390
5,883
77,938
2013
2012
---------- (Rupees in 000) -----------
Donations individually exceeding Rs.0.1 million
29.3.1
Lahore University of Management Sciences

The Citizens Foundation
Forman Christian College
Gulab Devi Chest Hospital
Shalamar Hospital
The Sir Syed Memorial Society
Friends of Burns Centre
Hisaar Foundation
Sukkur Institute of Business Administration
Developments in Literacy
Al-Mehrab Tibbi Imdad
Government College University, Lahore
Marie Adelaide Leprosy Centre
Abdul Sattar Edhi Foundation
Bazm-e-Kiran
Buksh Foundation
Burhani Medical Welfare Association
SOS Childrens Villages of Pakistan
Shaukat Khanum Memorial Trust
The Kidney Center Post Graduate Training Institute
Swiss Muslim Society, Switzerland
Karwan-e-Hayat
Rotary Club of Karachi Continental, Pakistan
Institute of Business Administration
Sindh Welfare Association of the Deaf
Children Welfare Society
Kaghan Memorial Trust
Mukhtar Mai Womens Organization
Naseer Construction Co. (Renovation of courts)
Subh-e-Nau
Sargodhian Spirit Trust
Sindh Institute of Urology and Transplantation
Pakistan Foundation Fighting Blindness
Drug Free Pakistan Foundation
The Oxford and Cambridge Society Karachi
20,000
12,545
10,000
10,000
5,000
5,000
2,600
2,290
1,560
1,000
1,000
1,000
850
700
600
540
540
450
200
200
165
150
120
100
25
-
500
1,000
1,296
3,060
1,000
850
450
2,700
100
150
20,000
324
200
500
500
277
500
200
200
500
200
165
Donations individually not exceeding Rs.0.1 million
602
77,237
464
35,136
Donations were not made to any donee in which a Director or his spouse had any interest.
199

Note
30.
OTHER PROVISIONS - Net

Provision against other assets - net
Impairment loss on non-banking assets acquired in
satisfaction of claims
Other provisions
(Reversal) / provision against Ijarah Assets - Specific
Provision against Ijarah Assets - General
31.
12.2
20.1
2013
2012
----------- (Rupees in 000) ----------26,210
-
190,619
249
180,489
122,465
(4,184)
582
325,562
147,994
137,834
12,485
141
489,322
WORKERS WELFARE FUND

Under the Workers Welfare Ordinance, 1971, certain entities of the Group are liable to pay Workers Welfare Fund @ 2% of profit
before tax as per the financial statements or declared income as per the income tax return, whichever is higher.
32.
2013
2012
------------- (Rupees in 000) -------------
OTHER CHARGES
Penalties imposed by the SBP
Other penalties
247,411
1,966
249,377
63,986
998
64,984
2013
Azad
Domestic
Total
Kashmir
---------------------------------------- (Rupees in 000) ------------------------------------Overseas
33.
TAXATION
Current
Prior years
Deferred
1,762,383
61,607
(50,325)
1,773,665
91,301
672
91,973
6,448,627
285
919,857
7,368,769
8,302,311
61,892
870,204
9,234,407
2012
Azad
Domestic
Total
Kashmir
---------------------------------------- (Rupees in 000) ------------------------------------Overseas
Current
Prior years
Deferred
33.1
34.
1,321,121
489,602
(448,015)
1,362,708
Relationship between tax expense and accounting profit
158,000
1,442
159,442
7,582,750
330
(36,690)
7,546,390
9,061,871
489,932
(483,263)
9,068,540
2013
2012
------------- (Rupees in 000) -------------
Accounting profit for the year
28,965,178
28,315,979
Tax on income @ 35% (2012: 35%)

Tax effect of items that are either not included in determining taxable
profit or taxed at reduced rates (permanent differences)
Tax - prior years
Others
Tax charge
10,137,812
9,910,593
(971,208)
61,892
5,911
9,234,407
(877,103)
489,932
(454,882)
9,068,540
EARNINGS PER SHARE

Profit after tax attributable to equity shareholders of the Bank
19,285,513
19,158,142
------------- (Number of shares) --------Weighted average number of ordinary shares
1,224,179,687
1,224,179,687
------------------ (Rupees) -----------------Earnings per share - basic and diluted
200
Annual Report 2013
15.75
15.65

34.1
Diluted earnings per share has not been presented separately as the Bank does not have any convertible instruments in issue at
December 31, 2013 or 2012.
Note
35.
CASH AND CASH EQUIVALENTS

36.
2013
2012
----------- (Rupees in 000) ------------
STAFF STRENGTH
Permanent
On contract
Groups own staff strength
Outsourced
Total
37.
DEFINED BENEFIT PLANS
37.1
The Bank
37.1.1
General description
6
7
89,591,601
32,658,606
122,250,207
94,846,802
21,967,703
116,814,505
---------------- (Number) ---------------9,262

55
9,317
4,291
13,608
9,292
88
9,380
3,985
13,365
The Bank operates a funded pension scheme established in 1986. The Bank also operates a funded gratuity scheme for new
employees and for those employees who have not opted for the pension scheme. The Bank also operates a contributory
benevolent fund scheme and provides post-retirement medical benefits to eligible retired employees. The benevolent fund
scheme and the post-retirement medical scheme cover all regular employees of the Bank who joined the Bank pre-privatization.
The Bank also maintains an employee compensated absences scheme. The liabilities of the Bank in respect of these schemes are
determined based on actuarial valuations carried out using the Projected Unit Credit Method. Actuarial valuations of the defined
benefit schemes are carried out every year and the latest valuation was carried out as at December 31, 2013.
37.1.2
Number of Employees under the scheme

The number of employees covered under the following defined benefit schemes are:
2013
2012
---------------- (Number) ----------------
Pension fund
Gratuity fund
Benevolent fund
Post-retirement medical benefit scheme
6,326
6,733
5,709
7,729
7,348
6,645
6,386
8,003
The pension fund, benevolent fund and post retirement medical benefit schemes include 4,484 (2012: 5,349), 2,446 (2012: 2,745)
and 4,766 (2012: 4,695) members respectively who have retired or whose widows are receiving the benefits.
37.1.3

The actuarial valuations were carried out as at December 31, 2013 using the following significant assumptions:
2013
2012
--------------- Per annum ---------------Discount rate / expected rate of return on plan assets
Expected rate of increase in pension / medical benefit
12.75%
10.75%
5.00%
12.00%
10.00%
4.25%
201

37.1.4
Reconciliation of (receivable from) / payable to defined benefit plans

Note
2013
2012
Post
Post
Benevolent
Pension fund Gratuity fund
retirement
retirement
fund
medical benefit
medical benefit
-------------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------Benevolent
fund
Present value of obligations

(Receivable) / payable
37.1.5
37.1.8.2
375,149
(856,535)
(481,386)
930,955
930,955
3,537,429
(5,137,979)
(1,600,550)
523,053
(409,974)
113,079
409,721
(836,962)
(427,241)
943,927
943,927
3,537,429
10,223
145,402
(604,437)
231,326
(74,693)
3,245,250
523,053
67,263
62,159
(118,176)
54,281
588,580
409,721
5,903
43,743
(82,787)
(1,431)
375,149
943,927
5,155
113,581
(102,704)
(29,004)
930,955
3,671,958
10,431
155,593
(610,815)
284,869
25,393
3,537,429
472,157
58,356
61,107
(93,440)
24,873
523,053
424,851
5,779
49,198
(84,794)
14,687
409,721
831,508
5,008
108,422
(106,033)
105,022
943,927
5,137,979
557,344
(2,416,372)
25,263
3,304,214
409,974
52,901
82,400
(123,041)
13,905
436,139
836,962
91,856
4,149
4,149
(82,958)
2,377
856,535
5,477,630
651,709
(1,020,452)
29,092
5,137,979
381,841
50,375
79,253
(98,284)
(3,211)
409,974
827,840
97,571
4,618
4,618
(94,751)
(2,934)
836,962
113,079
(120)
76,521
(82,400)
123,041
40,496
(118,176)
152,441
(427,241)
(171)
(46,359)
(4,149)
82,958
(3,637)
(82,787)
(481,386)
943,927
118,736
(29,004)
(102,704)
930,955
(1,805,672)
(1,939)
(200,816)
1,020,452
(1,760)
(610,815)
(1,600,550)
90,316
(61)
69,088
(79,253)
98,284
28,145
(93,440)
113,079
(402,989)
(168)
(47,212)
(4,618)
94,751
17,789
(84,794)
(427,241)
831,508
113,430
105,022
(106,033)
943,927
67,263
9,258
76,521
5,903
(48,113)
(4,149)
(46,359)
5,155
113,581
118,736
58,356
10,732
69,088
5,779
(48,373)
(4,618)
(47,212)
5,008
108,422
113,430
Movement in fair value of plan assets

Fair value at the beginning of the year
Interest income on plan assets
Contribution by the employees
Amount paid by the fund to the Bank
Actuarial gain / (loss) on plan assets
Fair value at the end of the year
37.1.7
588,580
(436,139)
152,441
Movement in defined benefit obligations

Obligations at the beginning of the year
Interest cost
Actuarial (gain) / loss on obligations
Obligations at the end of the year
37.1.6
3,245,250
(3,304,214)
(58,964)
Movement in (receivable) / payable under defined benefit schemes
Opening balance
Mark-up receivable on Banks balance with the fund
(Reversal) / charge for the year
Amount paid by the Fund to the Bank
Actuarial (gain) / loss recognised in OCI
Closing balance
37.1.8
37.1.8.1
Cost recognised in profit and loss

Net interest on defined benefit asset / liability
Employees contribution
37.1.8.2
(1,600,550)
(43,851)
(170,393)
2,416,372
(56,105)
(604,437)
(58,964)
10,223
(411,942)
231,326
(170,393)
10,431
(496,116)
284,869
(200,816)
37.1.8.2
This represents return allocated to those employees who exercised the conversion option offered in the year 2001, as referred to in note 5.11.1.
37.1.9
Re-measurements recognised in OCI during the year

2013
2012
Post
Post
Benevolent
retirement
retirement
fund
medical benefit
medical benefit
------------------------------------------------------------------------------ (Rupees in 000) -----------------------------------------------------------------------Benevolent
fund
Actuarial gain / (loss) on obligations

- Demographic assumptions
- Financial assumptions
- Experience adjustments
Return on plan assets over interest income
Adjustment for markup
Total re-measurements recognised in OCI
202
Annual Report 2013
6,368
(29,619)
97,944
25,263
(43,851)
56,105
(2,544)
(32,512)
(19,225)
13,905
(120)
(40,496)
17,073
(17,697)
2,055
2,377
(171)
3,637
713
(9,102)
37,393
29,004
(14,122)
(11,271)
29,092
(1,939)
1,760
3,224
(28,098)
(3,211)
(61)
(28,146)
(18,721)
4,034
(2,934)
(168)
(17,789)
(5,370)
(99,652)
(105,022)

37.1.10
Components of plan assets
Pension fund
2013
Gratuity fund
2012
Benevolent
Pension fund
Gratuity fund
Benevolent
fund
fund
----------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------14,909
307
340
2,393
3,067
628
93,436
472,327
5,750
11,407
13,097
15,768
59,226
550,653
3,645
13,795
8,302
2,100
15,425
123,422
228,253
81,294
308
(14,602)
436,139
23,328
344,283
412,713
47,006
856,535
71,477
2,504,018
163,754
1,786,458
5,137,979
154,306
7,851
227,310
409,974
21,528
582,025
12,869
194,085
836,962
Cash and cash equivalents - net of current liabilities

Quoted securities
Ordinary shares
Preference shares
Unquoted securities
Certificates of Investment
Treasury Bills
Special Savings Certificates
Reverse Repo
Other
37.1.11
77,477
1,964,777
666,686
14,602
3,304,214
Sensitivity analysis
Sensitivity analysis has been performed by varying one assumption keeping all other assumptions constant and calculating the impact on the present value of the defined
benefit obligations under the various employee benefit schemes. The increase / (decrease) in the present value of defined benefit obligations as a result of a change in each
assumption is summarized below:
2013
Pension fund
Gratuity fund
Benevolent fund Post retirement
medical benefit
------------------------------------------- (Rupees in 000) ----------------------------------Increase in Discount Rate by 1%
Decrease in Discount Rate by 1%
Increase in expected future increment in salary by 1%
Decrease in expected future increment in salary by 1%
Increase in expected future increment in pension by 1%
Decrease in expected future increment in pension by 1%
Increase in expected future increment in medical benefit by 1%
Decrease in expected future increment in medical benefit by 1%
If the withdrawal rate is light
If the withdrawal rate is heavy
(73,361)
83,585
74,381
(66,015)
(24,306)
21,215
(37,605)
43,343
46,609
(41,051)
(22,073)
18,019
(20,650)
23,099
(14,904)
12,949
(69,820)
80,465
78,858
(69,561)
(7,644)
6,674
Although the analysis does not take account of the full distribution of expected cash flows, it does provide an approximation of the sensitivity of the assumptions shown.
37.1.12
Expected contributions to be paid to the funds in the next financial year

The Bank contributes to the pension and gratuity funds according to the actuarys advice. Contribution to the benevolent fund is made by the Bank as per the rates set out in the benevolent fund
scheme. Based on actuarial advice, management estimates that the expected contribution and charge / (reversal) for the year ended December 31, 2014, would be as follows:
2014
Benevolent fund
Post retirement
medical benefit
------------------------------------------- (Rupees in 000) -----------------------------------
37.1.13
Pension fund
Gratuity fund
Expected contribution
2,833
99,392
3,879
Expected charge / (reversal) for the year
2,833
99,392
(60,106)
Pension fund
Gratuity fund
2013
Benevolent fund
7.44
7.71
Maturity profile
The weighted average duration of the obligation (in years)

37.1.14
6.55
123,769
Post retirement
medical benefit
9.04
Funding Policy
The Bank endeavours to ensure that liabilities under the various employee benefit schemes are covered by the Fund on any valuation date having regards to the various
actuarial assumptions such as projected future salary increase, expected future contributions to the fund, projected increase in liability associated with future service and
the projected investment income of the Fund.
37.2
United National Bank Limited Pension and Life Assurance Scheme for U.K Employees.
As part of the Shareholders Agreement (the Agreement) signed on November 9, 2001 between UNBL and its shareholders, United Bank Limited and National Bank of
Pakistan (NBP), it was agreed that UNBL may participate as an associated employer in the United Bank Limited Pension and Life Assurance Scheme (the Scheme) with
effect from November 19, 2001, the date of completion of transfer of the businesses from the Bank and NBP into UNBL (the Completion Date). The Scheme is classified as
a defined benefit scheme providing benefits based on final pensionable salary.
Under the terms of the Agreement, UNBL is responsible for the funding requirements of the active members whose employment was transferred to UNBL on the Completion
Date and for any new members admitted to the scheme after the Completion Date. United Bank Limited remains responsible for the funding of the deferred members upto
the Completion Date. The scheme is closed for new members and the accrual of benefits has ceased from January 1, 2010.
Full actuarial valuations using the Projected Unit Credit Method are obtained triennially and updated at each statement of financial position date.
203

The last full actuarial valuation of the scheme was carried out at January 1, 2012 by a qualified actuary. The major assumptions used by the actuary in the latest
update as of December 31, 2013 are as follows:
2013
2012
------------------- Per annum --------------------
37.2.1
Discount rate
4.40%
4.10%
Rate of revaluation of pension in deferment
3.00%
2.20%
0.00%
0.00%
Expected rate of pension increase
3.50%
3.00%
Price inflation
3.50%
2.70%
The assets and liabilities of the scheme noted below relate to those employees for whom UNBL has a funding liability.
2013
Return
Insurance policy
2012
(Rupees in 000)
4.95%
718,604
Return
3.80%
614,288
Market value of assets
718,604
614,288
Actuarial value of liability
(843,131)
(764,130)
Gross pension liability
(124,527)
(149,842)
Related deferred tax relief
26,125
35,969
Net pension liability
(98,402)
(113,873)
2013
37.2.2
(Rupees in 000)
Movement in surplus / (deficit) during the year

Obligation at the beginning of the year
Interest expense
Actuarial gain / loss
Exchange adjustment
Deficit in scheme at the end of the year
2012
--------------- (Rupees in 000) ----------------(149,842)

(8,113)
50,159
(23,704)
(5,476)
(117,239)
(16,731)
(3,423)
(124,527)
(149,842)
Related deferred tax relief
26,125
35,969
Obligation at the end of the year
(98,402)
(113,873)
No Directors were members of the defined benefit scheme during the year or as at December 31, 2013.
37.2.3
Analysis of the amount credited / (debited) to net interest income

Expected return on pension scheme assets
23,223
24,567
Interest on pension scheme liabilities
(31,336)
(30,043)
(8,113)
(5,476)
Net return
37.3
UBL Fund Managers Limited
37.3.1

UFML operates a funded gratuity scheme. The liability of UFML in respect of this scheme is determined based on an annual actuarial valuation carried out using
the Projected Unit Credit Method. The latest valuation was carried out as at December 31, 2013. The main assumptions used in the actuarial valuation are as
follows:
2013
2012
------------------- Per annum --------------------
204
Discount rate
12.75%
12.00%
Expected rate of return on plan assets
12.75%
12.00%
12.75%
12.00%
Annual Report 2013

37.3.2
Reconciliation of payable to defined benefit plan

Present value of defined benefit obligations
Payable
37.3.3
38,122
(32,445)
5,677
33,565
(25,225)
8,340
33,565
6,736
4,327
(5,830)
(676)
38,122
24,330
5,573
3,441
(2,381)
2,602
33,565
25,225
3,373
6,573
(5,830)
3,104
32,445
16,295
2,441
6,597
(2,381)
2,273
25,225
21,438
4,405
6,602
32,445
16,250
497
6,387
2,091
25,225

Interest cost
Expected return on plan assets
Amortization of loss
6,736
4,327
(3,373)
7,690
5,573
3,441
(2,441)
6,573
Actual return on plan assets
6,478
4,714
6,573
7,690
(6,573)
7,690
6,597
6,573
(6,597)
6,573
Movement in defined benefit obligation

Obligation at the beginning of the year
Interest cost
Benefits paid
Actuarial (gain) / loss
Obligation at the end of the year
37.3.4
Movement in the fair value of plan assets

Fair value of plan assets at the beginning of the year
Expected return on plan assets
Contributions to the plan
Benefits paid
Actuarial gains
37.3.5
Composition of plan assets

Debt securities
Cash
Equity securities
Others
37.3.6
37.3.7
2013
2012
------------- (Rupees in 000) ---------------
Charge for defined benefit plan
Movement in net liability recognised

Opening net asset
Expense recognised
Contribution to the fund made during the year
Closing net assets
38
OTHER EMPLOYEE BENEFITS
38.1

The Bank operates a contributory provident fund scheme for 6,733 (2012: 6,645) employees who are not in the pension scheme. The employer and
employee each contribute 8.33% of the basic salary to the funded scheme every month.
UFML operates a contributory provident fund scheme. The employer and employee each contribute 10% of the basic salary to the funded scheme
every month.
UBL Bank (Tanzania) Limited operates a contributory provident fund scheme. The employer and employee each contribute 10% of the basic salary
to the funded scheme every month.
205

38.2
Employee Motivation and Retention Scheme

The Bank has a long term motivation and retention scheme for its employees. The liability of the Bank in respect of
the scheme for each year, if any, is fixed, and is accounted for in the year to which the scheme relates. The scheme is
managed by separate Trusts formed in respect of each year. During the year, Rs. 280.668 million (2012: Rs. 242.366
million) and Rs. 41.716 million (2012: Rs. 30.796 million) were received by the Executives and the Chief Executive
respectively from the scheme. No new Trust was set up during the current year.
Employee Stock Option Scheme
UBL Fund Managers has an incentive scheme for its top performing employees in the form of share options under the
policy of Employee Stock Option Scheme (ESOS). The options give a right to eligible employees to acquire shares
of UFML granted at a specified exercise price. The options vest over 3 years with 50% vesting at the end of second
year and 50% vesting at the end of third year. During the year, 182,300 shares were issued pursuant to exercise of
the share options.
38.3
Benazir Employees Stock Option Scheme

Based on a decision by the Cabinet Committee on Privatization, the banking sector has been excluded from the
purview of Benazir Employees Stock Option Scheme.
39.
COMPENSATION OF DIRECTORS AND EXECUTIVES

President / Chief
Directors
Executives
Executive
2013
2012
2013
2012
2013
2012
------------------------------------------ (Rupees in 000) ---------------------------------------------Fees
33,915
34,133
17,206
12,328
120,707
83,526
5,031,512
4,012,502
Charge for defined benefit plan
1,442
1,457
371,662
301,221
Charge for defined contribution plan
2,476
2,263
152,562
123,264
Rent and house maintenance
4,346
3,607
557,003
467,422
Utilities
704
847
256,231
226,678
Medical
61
21
120,404
109,134
347,619
324,243
8,632
138,368
6,203
97,924
33,915
34,133
348,657
7,202,856
248,941
5,825,733
1,722
1,584
Managerial remuneration
Conveyance
Others
Number of persons
The Banks President / Chief Executive Officer and certain Executives are provided with use of Bank maintained cars and household
equipment.
In addition to the above, all Executives including the Chief Executive Officer of the Bank, are also entitled to certain short and long
term employee benefits which are disclosed in notes 37 and 38 to these financial statements.
40.
FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. The fair value
of unquoted equity securities, other than investments in associates is determined on the basis of the break-up value of these
investments as per their latest available audited financial statements. The fair value of associates is based on the net assets of the
associates as per their latest financial statements.
206
Annual Report 2013

The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot be calculated with sufficient reliability
due to the absence of a current and active market for these assets and liabilities and reliable data regarding market rates for similar instruments.
In the opinion of the management, the fair value of the remaining financial assets and liabilities are not significantly different from their carrying values since these are
either short-term in nature or, in the case of customer loans and deposits, are frequently repriced.
41.
SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

Corporate
Trading and
Retail banking
Commercial
Asset
Others
Inter segment
finance
sales
banking
management
elimination
---------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------Total income
Total expenses
Profit before tax
282,494
(84,684)
197,810
35.1%
1.4%
16,596,160
(1,373,533)
15,222,627
2.1%
6.1%
30,173,011
(23,960,130)
6,212,881
0.6%
3.7%
10,450,893
(4,477,486)
5,973,407
1.0%
6.4%
630,038
(457,595)
172,443
19.9%
-
2,075,510
(889,500)
1,186,010
-

Corporate
Trading and
Retail banking
Commercial
Asset
Others
Inter segment
finance
sales
banking
management
elimination
---------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------Total income
Total expenses
Profit before tax
246,954
(371,448)
(124,494)
-7.7%
0.8%
12,018,638
(798,262)
11,220,376
1.9%
7.7%
34,923,081
(21,462,971)
13,460,110
1.4%
4.1%
9,248,872
(6,648,687)
2,600,185
0.5%
8.4%
724,244
(453,504)
270,740
32.7%
-
2,049,648
(1,160,586)
889,062
-

Corporate
Trading and
Retail banking
Commercial
Asset
Others
Inter segment
finance
sales
banking
management
elimination
---------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------Segment assets (gross of NPLs provisions)
Segment liabilities
871,272
686,875
489,059
254,094
542,686,795
2,065,568
1,708,033
497,317,706
796,930,956
25,055,587
20,397,714
804,325,091
408,036,105
26,826,792
21,842,639
369,858,106
883,739
114,926
88,011,300
200,110
60,500
9,779,152
(709,289,506)
(709,289,506)

Corporate
Trading and
Retail banking
Commercial
Asset
Others
Inter segment
finance
sales
banking
management
elimination
---------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------Segment assets (gross of NPLs provisions)
Segment liabilities
1,433,174
1,016,151
441,892
1,069,695
450,699,629
2,122,695
1,520,078
404,871,830
685,611,394
26,368,364
20,786,315
688,501,759
390,266,030
28,742,837
20,788,911
356,701,543
737,335
110,087
85,613,478
200,110
60,153
17,581,079
(608,417,333)
(608,417,333)
Segment assets and liabilities include inter segment balances.

Transactions between reportable segments are based on an appropriate transfer pricing mechanism using agreed rates.
42.
TRUST ACTIVITIES
The Group is not engaged in any significant trust activities. However, it acts as custodian for some of the Term Finance Certificates it arranges and
distributes on behalf of its customers.
43.

The Group has related party transactions with its associates, employee benefit plans and its Directors and executive officers (including their associates).
The Group enters into transactions with related parties in the normal course of business. Contributions to and accruals in respect of staff retirement
benefits and other benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan. Remuneration to the executives /
officers is determined in accordance with the terms of their appointment.
Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these consolidated financial
statements, are as follows:
207

43.1
2013
2012
Key management
Associates
Other related
Directors
Key management
Associates
Other related
personnel
parties
personnel
parties
---------------------------------------------------------------------------------------------- (Rupees in 000) ------------------------------------------------------------------------------------------Directors

In deposit accounts
773,770

810,000
Investments
Opening balance
Investment made during the year
Investment redeemed / disposed off during the year
Equity method adjustments
Closing balance
12,635,789
2,027,196
(8,170,659)
1,240,572
7,732,898
432,586
971,319
(491,881)
3,108,478
4,020,502
16,282,680
2,927,737
(7,170,646)
200,000
396,018
12,635,789
315,930
193,225
(76,569)
432,586
38,942
53,658
Advances
Opening balance
Repaid during the year
Closing balance
254,497
123,214
(108,849)
268,862
2,155,149
2,155,149
11,913,710
9,707,517
(21,208,273)
412,954
871
(871)
-
236,603
147,808
(129,914)
254,497
11,873,489
12,490,542
(12,450,321)
11,913,710
Provision held against advances
2,155,149
Other Assets
Interest mark-up accrued
Receivable from staff retirement funds
Prepaid insurance
Remuneration receivable from management of funds
Sales load receivable
Formation cost receivable
Advance for Pre-IPO investment
Dividend receivable
Other receivable
78
-
19
37,991
1,191
12,270
1,201
3,156
146,360
60,977
1,338
-
116
-
16
12,908
2,102
2,771
1,004,226
1,438
439,800
1,600,550
143
364,000
-
Borrowings
Opening balance
Borrowings during the year
Settled during the year
2,155,493
(2,155,493)
306,215
16,356,760
(16,662,975)
4,548,669
(4,548,669)
449,740
88,156,884
(88,300,409)
Closing balance
306,215
6,173,963
22,861,734
(21,522,949)
(6,275)
7,506,473
128,400
1,062,030
(1,029,142)
161,288
824,546
67,508,254
(67,665,288)
667,512
2,583,608
206,417,373
(207,536,396)
(729,586)
734,999
2,898,779
6,948,406
(3,673,222)
6,173,963
101,090
950,365
(923,055)
128,400
1,310,093
55,101,601
(55,587,148)
824,546
2,045,334
84,070,309
(83,532,035)
2,583,608
5,998
32,260
-
1,265
-
3,511
250,844
75,061
-
1,910
0
-
167
-
13,370
837
228,720
78,051
-
71,993
-
2,914,491
2,817,341

Opening balance
Received during the year
Withdrawn during the year
Closing balance
Subordinated loans
Other Liabilities
Interest / mark-up payable on deposits
Interest / mark-up payable on borrowings
Interest / mark-up payable on subordinated loans
Payable to staff retirement fund
Contingencies and Commitments
Letter of guarantee
Forward foreign exchange contracts purchase
Forward foreign exchange contracts sale
2013
2012
Key management
Associates
Other related
Directors
Key management
Associates
Other related
personnel
parties
personnel
parties
---------------------------------------------------------------------------------------------- (Rupees in 000) ------------------------------------------------------------------------------------------Directors

Commission / charges recovered
Dividend received
Net gain / (loss) on sale of securities
Realised gain on derivative transactions
Remuneration from management of fund
Sales Load
Other income
Mark-up / return / interest paid
Remuneration paid
Post employment benefits
Non-executive directors fee
Net charge for defined contribution plans
Net reversal for defined benefit plans
Payment for employee motivation and retention scheme
Donation
Insurance premium paid
Insurance claims settled
Other expenses
208
Annual Report 2013
14
-
11,582
84
153
18,178
36,680
927,907
411,390
91,540
4,266
932,765
27,459
459,451
8,719
12,078
-
77
30
-
12,652
24
685
987
2,058,392
(271,414)
592,498
30,781
4,682
1,833,517
36,929
1,136
8,006
1,123,975
9,413
-
260,037
33,915
-
3,604
1,032,942
29,650
-
56,922
269,165
175,176
20,605
114,301
271,324
(73,920)
87,192
194,070
34,133
-
3,535
698,824
26,187
-
13,662
258,389
151,292
-
123,797
233,063
(115,170)
250,000
75
79,446

44.
CAPITAL ADEQUACY
44.1
The State Bank of Pakistan (SBP) through its BPRD Circular No. 6 dated August 15, 2013 has issued Basel III Capital instructions for Banks /
DFIs. The revision to the previously applicable Capital Adequacy regulations pertain to components of eligible capital and related deductions. The
amendments have been introduced with an aim to further strengthen the existing capital related rules. Basel III instructions have become effective from
December 31, 2013; however, there is a transitional phase during which the complete requirements would become applicable with full implementation
by December 31, 2019. This Capital Adequacy framework is applicable to the Group.
The Groups capital adequacy is reported using the rules and ratios provided by the State Bank of Pakistan. The capital adequacy ratio is a measure of
the amount of a Groups capital expressed as a percentage of its risk weighted assets (RWAs). Banking operations are categorized as either Trading
Book or Banking Book and RWAs are determined according to specific treatments as per the requirements of SBP that measure the varying levels
of risk attached to on balance sheet and off-balance sheet exposures. Under the current capital adequacy regulations, credit risk and market risk
exposures are measured using the Standardized Approach and operational risk is measured using the Basic Indicator Approach. Credit risk mitigants
are also applied against the Groups exposures based on eligible collateral.
The scope of the Internal Capital Adequacy Assessment Process (ICAAP) includes United Bank Limited on a standalone basis. This framework has
been revised as per the new guidelines provided by the SBP. The ICAAP has been approved by the Banks Board of Directors and submitted to the
SBP. The Bank additionally covers risks not yet included under Pillar I, so as to carry adequate capital to cater for any future business requirements.
The Bank reviews the ICAAP on an annual basis and changes/updates are recommended to the Board Risk Management Committee for onward
approval of the Board of Directors.
The Group plans to move towards the Advanced Approaches as prescribed under Basel Framework, including the Foundation Internal Ratings Based
Approach for credit risk, Internal Models Approach for market risk and the Alternate Standardized Approach for operational risk.
44.2
Capital Management
The objective of managing capital is to safeguard the Groups ability to continue as a going concern. It is the policy of the Group to maintain a strong
capital base so as to maintain investor, depositor and market confidence and to sustain future development of the business. The Group aims to
maintain an optimum level of capital along with maximizing shareholders return as we consider a sound capital position as more appropriate as
opposed to leverage supporting business growth.
Statutory minimum capital and capital adequacy requirements
The SBP through its BSD Circular No. 07 dated April 15, 2009 has prescribed the minimum paid-up capital (net of accumulated losses) for Banks to
be raised to Rs.10 billion by the year ending December 31, 2013. The paid-up capital of the Bank for the year ended December 31, 2013 stood at
Rs.12,241.798 million (2012: Rs.12,241.798 million) and is in compliance with SBP requirements.
Banks are also required to maintain a minimum Capital Adequacy Ratio (CAR) of 10% of the risk weighted exposures of the Bank. Further, under
Basel III instructions, Banks are also required to maintain a Common Equity Tier 1 (CET 1) ratio and Tier 1 ratio of 5.0% and 6.5%, respectively, as at
December 31, 2013. As at December 31, 2013 the Group was fully compliant with prescribed ratios as the Groups CAR was 13.3% whereas CET 1
and Tier 1 ratios both stood at 9.6%. The Group and its individually regulated operations have complied with all capital requirements throughout the
year.
Tier 1 capital comprises of Common Equity Tier 1 (CET 1) and Additional Tier 1 (AT 1) capital.
CET 1 capital includes fully paid-up capital, balance in share premium account, general reserves as per the financial statements, net unappropriated
profits and minority interest meeting the eligibility criteria.
AT 1 capital includes instruments meeting the prescribed SBP criteria e.g. perpetual non-cumulative preference shares.
The deductions from Tier 1 capital include mainly;
i)
ii)
iii)
iv)
v)
Book value of goodwill / intangibles;

Deficit on revaluation of available for sale investments;
Reciprocal cross holdings in equity capital instruments of other banks, financial institutions and insurance companies;
Investment in mutual funds above a prescribed ceiling;
Threshold deductions applicable from 2014 on deferred tax assets and certain investments;
vi)
50% of investments in majority owned securities or other financial subsidiaries not consolidated in the statement of financial position, during
transition phase.
Tier 2 capital includes general provisions for loan losses, surplus on the revaluation of fixed assets and equity investments, foreign exchange translation
reserves and subordinated debts (meeting the revised eligibility criteria). The deductions from Tier 2 include mainly:
i)
ii)
Reciprocal cross holdings in other capital instruments of other banks, financial institution and insurance companies;
50% of investments in majority owned securities or other financial subsidiaries not consolidated in the statement of financial position, during
transition phase.
209

44.3
Capital Structure
2013
2012
Amounts subject
to Pre - Basel III
treatment
Amount
-------------------------- Rupees in 000 -------------------Common Equity Tier 1 capital (CET1): Instruments and reserves
1
2
3
4
5
6
7
8
Fully Paid-up Capital / Capital deposited with SBP

Unappropriated/unremitted profits/ (losses)
Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank
subsidiaries (amount allowed in CET1 capital of the consolidation group)
12,241,798
19,705,205
45,208,302
12,241,798
17,832,279
39,305,127
3,487,918
80,643,223
2,827,060
72,206,264
1,738,920
718,500
1,740,761
738,125

9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Deferred tax assets that rely on future profitability excluding those arising from temporary differences
(net of related tax liability)
Investments in the capital instruments of banking, financial and insurance entities that are outside the
scope of regulatory consolidation, where the bank does not own more than 10% of the issued share
capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and insurance entities that
are outside the scope of regulatory consolidation (amount above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related
tax liability)
786,878
4,962
-
(a)
58,964
19,498
32,298
-
3,161,078
6,410,338
74,232,885
570,670
3,101,352
69,104,912
2,545,125
-

31
32
33
34
35
36

Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties
(amount allowed in group AT 1)
37
38
39
40
41
42
43
44
45
46
are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based on pre-Basel III
treatment which, during transitional period, remain subject to deduction from tier-1 capital
210
Annual Report 2013
(b)
615,953
3,161,078
-
570,670
570,670
-
(c=a+b)
74,232,885
69,104,912

44.3
2013
Amount
--------------------------- Rupees in 000 ---------------------
Tier 2 Capital
47
48
49
50
51
52
53
54
55
56
57
2012
Amounts subject
to Pre - Basel III
treatment

Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group tier 2)
General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk Weighted
Assets
Revaluation Reserves
6,115,067
1,893,743
1,262,832
8,468,756
7,506,099
962,657
18,347,365
28,709,864
9,946,932
7,461,567
2,485,364
14,487,405
31,812,236
615,953
-
570,670
-
615,953
28,093,912
28,093,912
28,093,912
102,326,797
570,670
31,241,566
31,241,566
31,241,566
100,346,478

58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
are outside the scope of regulatory consolidation
Tier 2 capital (T2)
(d)
(e=c+d)
Total Risk Weighted Assets
(i=f+g+h)
772,130,489
675,051,148
(f)
511,625,837
458,564,944
(g)
(h)
58,964
157,530,404
102,974,248
120,963,590
95,522,614
(a/i)
(c/i)
(e/i)
9.6%
9.6%
13.3%
10.2%
10.2%
14.9%
5.0%
6.5%
10.0%
10.0%
1,893,743
6,395,323
1,262,832
5,732,062
Total Credit Risk Weighted Assets

Risk weighted assets in respect of amounts subject to Pre-Basel III Treatment
of which: recognized portion of investment in capital of banking, financial and insurance entities
where holding is more than 10% of the issued common share capital of the entity
of which: deferred tax assets
of which: [insert name of adjustment]
Total Market Risk Weighted Assets
Total Operational Risk Weighted Assets
Capital Ratios and buffers (in percentage of risk weighted assets)
76
77
78
79
80
81
82
83
CET1 to total RWA

Tier-1 capital to total RWA
Total capital to RWA
Bank specific buffer requirement (minimum CET1 requirement plus capital conservation buffer plus any
other buffer requirement)
of which: capital conservation buffer requirement
of which: countercyclical buffer requirement
of which: D-SIB or G-SIB buffer requirement
CET1 available to meet buffers (as a percentage of risk weighted assets)
National minimum capital requirements prescribed by SBP
84
85
86
CET1 minimum ratio

Tier 1 minimum ratio
Total capital minimum ratio
Amounts below the thresholds for deduction (before risk weighting)
87
88
89
Non-significant investments in the capital of other financial entities

Significant investments in the common stock of financial entities
Deferred tax assets arising from temporary differences (net of related tax liability)
Applicable caps on the inclusion of provisions in Tier 2
90
91
92
93
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to standardized approach (prior
to application of cap)
Cap on inclusion of provisions in Tier 2 under standardized approach
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal ratings-based
approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
211

44.4
Capital Structure Reconciliation

Step 1
Assets
Investments
Advances
Deferred tax assets - net
Other assets
Total assets
Bills payable
Borrowings
Sub-ordinated loans
Other liabilities
Total liabilities
Share capital
Reserves
212
Annual Report 2013
Balance
Under
Sheet as per
regulatory
published
scope of
financial
consolidation
statements
As at Dec 31,
As at Dec 31,
2013
2013
-------------- (Rupees in 000) -----------89,591,601
32,658,606
29,858,038
458,846,198
415,283,310
28,037,980
29,356,983
1,083,632,716
89,591,601
32,658,606
29,858,038
458,846,198
415,283,310
28,037,980
29,356,983
1,083,632,716
16,600,691
41,077,730
889,525,603
665,328
1,325
1,395,138
23,093,754
972,359,569
16,600,691
41,077,730
889,525,603
665,328
1,325
1,395,138
23,093,754
972,359,569
12,241,798
38,049,345
45,208,302
95,499,445
3,487,918
98,987,363
12,285,784
1,083,632,716
12,241,798
38,049,345
45,208,302
95,499,445
3,487,918
98,987,363
12,285,784
1,083,632,716

44.4

Step 2
Balance Sheet
as per published
financial statements
Under regulatory
scope of
consolidation
Reference
As at Dec 31,
As at Dec 31,
2013
2013
------------------ (Rupees in 000) --------------Assets
89,591,601
89,591,601
32,658,606
32,658,606
29,858,038
29,858,038
458,846,198
458,846,198
Investments
of which: Non-significant capital investments in capital of other financial institutions exceeding 10% threshold
of which: significant capital investments in financial sector entities exceeding regulatory threshold
2,545,125
2,545,125
786,878
786,878
415,283,310
415,283,310
of which: Mutual Funds exceeding regulatory threshold

of which: reciprocal crossholding of capital instrument
of which: others
Advances
shortfall in provisions/ excess of total EL amount over eligible provisions under IRB
general provisions reflected in Tier 2 capital
Fixed Assets
of which: Goodwill
of which: Intangibles
Deferred Tax Assets
718,500
718,500
1,893,743
1,893,743
28,037,980
28,037,980
1,738,920
1,738,920
of which: DTAs excluding those arising from temporary differences
of which: DTAs arising from temporary differences exceeding regulatory threshold
29,356,983
29,356,983
Other assets
58,964
58,964
1,083,632,716
1,083,632,716
Bills payable
16,600,691
16,600,691
Borrowings
41,077,730
41,077,730
889,525,603
889,525,603
Total assets

Sub-ordinated loans
665,328
665,328
of which: eligible for inclusion in AT1
of which: eligible for inclusion in Tier 2
1,325
1,325
1,395,138
1,395,138

Deferred tax liabilities
of which: DTLs related to goodwill
of which: DTLs related to intangible assets
of which: DTLs related to defined pension fund net assets
1,395,138
1,395,138
Other liabilities
23,093,754
23,093,754
Total liabilities
972,359,569
972,359,569
Share capital
12,241,798
12,241,798
12,241,798
12,241,798
38,049,345
38,049,345
19,705,205
19,705,205
18,347,365
18,347,365
45,208,302
45,208,302
3,487,918
3,487,918
3,487,918
3,487,918
y
z
of which: other deferred tax liabilities
of which: amount eligible for CET1

of which: amount eligible for AT1
Reserves
Minority Interest
of which: portion eligible for inclusion in AT1
of which: Unrealized Gains on AFS
In case of Deficit on revaluation (deduction from CET1)
Total liabilities & Equity
12,285,784
12,285,784
11,311,459
11,311,459
974,325
974,325
1,083,632,716
1,083,632,716
aa
ab
213

44.4

Step 3
Component of
regulatory capital
reported by bank
(Rupees in 000)
Source based on
reference number
from step 2
Common Equity Tier 1 capital (CET1): Instruments and reserves

1
Fully Paid-up Capital/ Capital deposited with SBP
Unappropriated/unremitted profits/(losses)
Minority Interests arising from CET1 capital instruments issued to third party by consolidated bank
subsidiaries (amount allowed in CET1 capital of the consolidation group)
12,241,798
(s)
19,705,205
(u)
45,208,302
(w)
3,487,918
(x)
80,643,223

9
10
(j) - (o)
1,738,920
(k) - (p)
11
12
Deferred tax assets that rely on future profitability excluding those arising from temporary differences
(net of related tax liability)
718,500
-
{(h) - (r) } * x%
13
{(l) - (q)} * x%
14
15
16
17
18
19
(ab)
20
(a) - (ac) - (ae)
21
Significant investments in the capital instruments issued by banking, financial and insurance entities
that are outside the scope of regulatory consolidation (amount above 10% threshold)
(b) - (ad) - (af)
22
Deferred Tax Assets arising from temporary differences (amount above 10% threshold, net of related
tax liability)
(i)
23
786,878
(d)
4,962
24
25
26
27
28
29
30

(f)
3,161,078
6,410,338
74,232,885

31
(t)
33
(m)
(y)
34
35
36
214
32
Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by third parties
(amount allowed in group AT 1)
Annual Report 2013

44.4

Component of
regulatory capital
reported by bank
(Rupees in 000)
Source based on
reference number
from step 2

37
38
39
40
(ac)
41
that are outside the scope of regulatory consolidation
(ad)
42
43
44
45
46

2,545,125
615,953
3,161,078
74,232,885
Tier 2 Capital
47
48
49
Tier 2 capital instruments issued to third party by consolidated subsidiaries (amount allowed in group
tier 2)
50
General Provisions or general reserves for loan losses-up to maximum of 1.25% of Credit Risk
Weighted Assets
1,893,743
52
Revaluation Reserves eligible for Tier 2
8,468,756
53
of which: portion pertaining to Property

of which: portion pertaining to AFS securities
55
56
57
(z)
51
54
(n)
7,506,099
962,657
18,347,365
(g)
portion of (aa)
(v)
28,709,864

58
59
60
61
(ae)
62
that are outside the scope of regulatory consolidation
(af)
63
64
Tier 2 capital (T2)
28,093,912
65
28,093,912
66
67

615,953
615,953
28,093,912
102,326,797
215

44.5
Main Features Template of Regulatory Capital Instruments

Disclosure template for main features of regulatory capital instruments
Main Features
1
Issuer
Common Shares
United Bank Limited
Unique identifier (eg KSE Symbol or Bloomberg identifier etc.)
Governing law(s) of the instrument
On KSE UBL and on Bloomberg UBL PA.

Relevant Capital Market Laws
Regulatory treatment
4
Transitional Basel III rules
Post-transitional Basel III rules
Eligible at solo/ group/ group&solo
Instrument type
Amount recognized in regulatory capital (Currency in PKR thousands, as of reporting date)
12,241,798
Par value of instrument
Rs 10 each
10
Accounting classification
11
Original date of issuance
12
Perpetual or dated
13
14
Original maturity date

Issuer call subject to prior supervisory approval
Group & Standalone

Ordinary Shares
Shareholders equity
1959
Perpetual
No maturity
Not applicable
15
Optional call date, contingent call dates and redemption amount
Not applicable
16
Subsequent call dates, if applicable
Not applicable
Coupons / dividends
17
Fixed or floating dividend/ coupon
Not applicable
18
Coupon rate and any related index/ benchmark
Not applicable
19
Existence of a dividend stopper
20
Fully discretionary, partially discretionary or mandatory
21
Existence of step up or other incentive to redeem
22
Noncumulative or cumulative
23
No
Not applicable
Non Convertible
24
If convertible, conversion trigger (s)
Not applicable
25
If convertible, fully or partially
Not applicable
26
If convertible, conversion rate
Not applicable
27
If convertible, mandatory or optional conversion
Not applicable
28
If convertible, specify instrument type convertible into
Not applicable
29
If convertible, specify issuer of instrument it converts into
Not applicable
30
Write-down feature
Not applicable
31
If write-down, write-down trigger(s)
Not applicable
32
If write-down, full or partial
Not applicable
33
If write-down, permanent or temporary
Not applicable
34
216
Convertible or non-convertible
No
Fully discretionary
If temporary write-down, description of write-up mechanism
Not applicable
35
Position in subordination hierarchy in liquidation (specify instrument type immediately

senior to instrument
36
Non-compliant transitioned features
Not applicable
37
If yes, specify non-compliant features
Not applicable
Annual Report 2013
Common equity (ranks after all creditors including

depositors)

44.6
Capital Adequacy Ratio

Risk weighted exposures
Capital requirements
Risk weighted assets
2013
2012
2013
2012
----------------------------------------- (Rupees in 000) ---------------------------------------
Credit risk
Claims on:
Federal and Provincial Governments, SBP and
other sovereigns in foreign currency
Public Sector Enterprises
Banks
Corporates
Retail portfolio
Secured by residential property
Past due loans
Listed equity investments
Unlisted equity investments
Commercial Entity
Investments in fixed assets
Significant investment & DTA
Other assets
Market risk
Interest rate risk
Equity exposure risk
Foreign exchange risk
Operational risk
Total eligible regulatory capital held
Total risk weighted assets
6,758,693
960,626
6,650,620
28,307,908
1,989,795
143,327
2,092,058
196,915
22,972
67,623
2,648,058
1,323,991
51,162,584
5,218,421
1,088,721
4,774,662
24,586,109
2,355,548
155,967
2,001,677
182,635
1,757,648
2,583,482
1,151,626
45,856,494
67,586,925
9,606,261
66,506,196
283,079,078
19,897,945
1,433,267
20,920,579
1,969,145
229,724
676,228
26,480,580
13,239,908
511,625,837
52,184,207
10,887,206
47,746,622
245,861,093
23,555,479
1,559,671
20,016,765
1,826,351
17,576,475
25,834,820
11,516,255
458,564,944
8,988,077
2,691,497
922,859
12,602,432
8,237,940
72,002,956
4,555,843
1,117,071
144,654
5,817,568
7,621,902
59,295,964
112,350,956
33,643,712
11,535,736
157,530,404
102,974,248
772,130,489
95,640,691
14,065,381
11,257,518
120,963,590
95,522,614
675,051,148
102,326,797
772,130,489
13.3%
100,346,478
675,051,148
14.9%
217

44.7
Credit risk - General disclosures

The Group follows the Standardized Approach for its credit risk exposures, which sets out fixed risk weights corresponding to
external credit ratings or type of exposure, whichever is applicable.
Under the Standardized Approach, the capital requirement is based on the credit rating assigned to counterparties by External
Credit Assessment Institutions (ECAIs) duly recognized by the SBP. The Group selects particular ECAIs for each type of exposure.
The Group utilizes the credit ratings assigned by Pakistan Credit Rating Agency (PACRA), Japan Credit Rating Company Limited
Vital Information Systems (JCR-VIS), Fitch, Moodys and Standard & Poors (S & P). The Group also utilizes rating scores of Export
Credit Agencies (ECAs) participating in the Arrangement on Officially Supported Export Credits.
Types of exposure and ECAIs used
Corporates
Banks
Sovereigns
FITCH
Moodys
S&P
PACRA
JCR-VIS
P
-
P
P
-
P
-
P
P
P
P
P
P
ECA
scores
P
-
Mapping to SBP Rating Grades

For all exposures, the selected ratings are translated to the standard rating grades given by the SBP. The mapping tables used for
converting ECAI ratings to SBP rating grades are given below:
Long Term Rating Grades mapping
SBP Rating grade
Fitch
Moodys
S&P
PACRA
JCR-VIS
ECA
Scores
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1
B2
B3
Caa1 and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+ and
below
0
1
SBP Rating Grade
Fitch
Moodys
S&P
PACRA
JCR-VIS
S1
S1
S2
S3
S4
F1
F1
F2
F3
Others
P-1
P-1
P-2
P-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
A-1+
A-1
A-2
A-3
Others
Short Term Rating Grades mapping
218
Annual Report 2013
5
6
7

44.8
Credit exposures subject to Standardized Approach
Exposures

Claims on Federal and Provincial Governments and
SBP, denominated in PKR
Foreign currency claims on SBP arising out
of statutory obligations in Pakistan
Rating
category /
risk weights
2013
2012
--------------------- (Rupees in 000) -------------------- --------------------- (Rupees in 000) -------------------Amount
Deduction
Net amount
Amount
Deduction
Net amount
outstanding
CRM
outstanding
CRM
15,091,261
15,091,261
24,028,268
24,028,268
123,596,908
24,042,563
99,554,345
167,163,379
51,224,862
115,938,517
7,941,106
7,941,106
6,323,688
6,323,688
Claims on other sovereigns and on

Government of Pakistan or provincial
governments or SBP denominated in
currencies other than PKR
1
2
3
4,5
6
Unrated
1,093,807
12,405,042
2,041,352
6,812,875
38,181,577
60,534,653
1,093,807
12,405,042
2,041,352
6,812,875
38,181,577
60,534,653
2,114,357
2,603,426
10,730,934
2,220,842
29,384,809
47,054,368
2,114,357
2,603,426
10,730,934
2,220,842
29,384,809
47,054,368
Corporates
0
1
2
3,4
5,6
Unrated
23,284,438
33,394,224
21,944,456
61,144
260,708,534
339,392,796
29,279
27,404
20,977,585
21,034,268
23,284,438
33,364,945
21,917,053
61,144
239,730,949
318,358,529
26,422,834
39,147,160
262,452
662,516
237,907,997
304,402,959
4,247
18,159,153
18,163,400
26,422,834
39,142,913
262,452
662,516
219,748,844
286,239,559
1,2,3
4,5
6
Unrated
603,360
2,687,684
3,291,045
1,851
1,851
603,360
2,685,833
3,289,194
612,611
3,381,066
3,993,677
612,611
3,381,066
3,993,677
Banks - others
0
1
2,3
4,5
6
Unrated
78,079,437
41,342,565
3,868,452
14,597,086
17,962,296
155,849,838
25,822,976
39,264
25,862,241
52,256,461
41,342,565
3,868,452
14,597,086
17,923,032
129,987,597
45,168,095
40,114,842
3,532,535
7,259,014
9,452,152
105,526,638
6,451,430
6,451,430
38,716,665
40,114,842
3,532,535
7,259,014
9,452,152
99,075,208
0
1
2,3
4,5
6
Unrated
12,176,901
54,497,938
66,674,839
1,501,690
39,555,501
41,057,191
10,675,211
14,942,437
25,617,648
7,556,089
70,046,865
77,602,954
1,072
51,294,459
51,295,531
7,555,017
18,752,406
26,307,423
75%
35%
29,300,295
4,095,047
33,395,342
2,769,701
2,769,701
26,530,594
4,095,047
30,625,641
34,157,061
4,456,204
38,613,265
2,749,755
2,749,755
31,407,306
4,456,204
35,863,510
Equity investments
- Listed
- Unlisted
- Commercial Entity (Holding greater than 10%)
100%
150%
1000%
1,969,145
153,150
67,623
2,189,918
1,969,145
153,150
67,623
2,189,918
1,826,351
11,717,650
13,544,001
1,826,351
11,717,650
13,544,001
Past due loans secured against mortgage

of residential property:
- less than 20% provided
- greater than 20% provided
100%
50%
68,351
241,163
309,514
68,351
241,163
309,514
173,111
353,437
526,548
173,111
353,437
526,548
Past due loans - others

- Less than 20% provided
- Between 20% to 50% provided
- More than 50% provided
150%
100%
50%
8,308,092
6,783,712
2,971,651
18,063,455
20
20
8,308,073
6,783,712
2,971,651
18,063,435
9,433,681
8,171,304
3,488,318
21,093,303
2,932,700
2,932,700
6,500,981
8,171,304
3,488,318
18,160,603
250%
100%
26,480,580
13,239,908
26,480,580
13,239,908
25,834,820
11,516,255
25,834,820
11,516,255
866,051,165
114,767,835
751,283,330
847,224,123
132,817,678
714,406,445
Claims on banks with maturity less than 3

months and denominated in foreign currency
Retail portfolio
Significant investment & DTA (greater than 15 % threshold)

Fixed assets
Others
219

Credit Risk: Disclosures with respect to Credit Risk Mitigation for Standardized Approach
The Group has adopted the Comprehensive Approach of Credit Risk Mitigation for the Banking Book. Under this approach,
cash, lien on deposits, government securities and eligible guarantees etc. are considered as eligible collateral. The Group has
in place detailed guidelines with respect to the valuation and management of each of these types of collateral. Where the
Groups exposure to an obligor is secured by eligible collateral, the Group reduces its exposure for the calculation of capital
requirement by the realizable amount of the collateral, adjusted for any applicable haircuts.
No credit risk mitigation benefit is taken in the Trading Book.
For each asset class, the risk weights as specified by the SBP or corresponding to the SBP rating grades are applied to the net
amount for the calculation of Risk Weighted Assets.
45.
RISK MANAGEMENT
This section presents information about the Groups exposure to and its management and control of risks, in particular, the
primary risks associated with its use of financial instruments such as credit, market, liquidity and operational risks.
The Bank has an integrated risk management structure in place. The Board Risk Management Committee (BRMC) oversees
the entire risk management process of the Bank. The Risk and Credit Policy Group is responsible for the development and
implementation of all risk policies as approved by the BRMC / BoD. The group is organized into the functions of Market &
Financial Institutions Risk, Credit Policy & Research, Credit Risk Management and Operational Risk & Basel II. Each risk
function is headed by a senior manager who reports directly to the Group Head, Risk and Credit Policy. The role of the Risk
and Credit Policy Group includes:
45.1
Determining guidelines relating to the Banks risk appetite.
Recommending risk management policies in accordance with the Prudential Regulations, Basel II framework and
international best practices.
Reviewing policies/ manuals and ensuring that these are in accordance with BRMC / BoD approved risk management
policies.
Developing systems and resources to review the key risk exposures of the Bank.
Approving credits and granting approval authority to qualified and experienced individuals.
Reviewing the adequacy of credit training across the Bank.
Organizing portfolio reviews focusing on quality assessment, risk profiles, industry concentrations, etc.
Setting systems to identify significant portfolio indicators, problem credits and level of provisioning required.
Credit risk
Credit risk is the risk that a customer or counterparty may not settle an obligation for full value, either when due or at any time
thereafter. This risk arises from the potential that a customers or counterpartys willingness or ability to meet such an obligation
is impaired, resulting in an economic loss to the Group.
The credit risk management process is driven by the Banks Credit Policy, which provides policies and procedures in relation to
credit initiation, approval, documentation and disbursement, credit maintenance and remedial management.
Individual credit authorities are delegated to credit officers by the Board according to their seasoning/maturity. Approvals for
Corporate and Consumer loans are centralized, while approval authorities for Commercial and SME exposures are delegated
to a Regional level. All credit policy functions are centrally organized.
Concentrations of credit risk exist if clients are engaged in similar activities, or are located in the same geographical region,
or have comparable economic characteristics such that their ability to meet contractual obligations would be similarly affected
by changes in economic, political or other conditions. The Group manages, limits and controls concentrations of credit risk
to individual counterparties and groups, and to industries, where appropriate. Limits are also applied to portfolios or sectors
where the Group considers it appropriate to restrict credit risk concentrations, or to areas of higher risk, or to control the rate
of portfolio growth.
220
Annual Report 2013

45.2
Segmental information
45.2.1
Segments by class of business
Gross advances

Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Cement
Sugar
Financial
Insurance
Paper and allied
Surgical and metal
Contractors
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Airlines
Cables
Construction
Engineering
Glass and allied
Hotels
Infrastructure
Media
Polyester and fiber
Telecommunication
Individuals
Others
2013
Deposits
Contingencies and
commitments
(Rupees in 000)
Percent
(Rupees in 000)
Percent
(Rupees in 000)
Percent
5,979,475
58,684,521
21,677,722
4,207,145
23,561,718
13,773,358
3,790,075
4,380,318
2,084,008
4,851,574
15,465,476
3,953,956
57,710,061
1,699,829
140,838
9,793,869
21,376,992
5,253,653
272,606
21,811,888
9,105,607
234,513
20,756,557
3,144,086
249,106
2,458,432
687,729
4,128,139
6,275,345
63,518,871
70,647,531
461,674,998
1.30%
12.71%
4.70%
0.91%
5.10%
2.98%
0.82%
0.95%
0.45%
1.05%
3.35%
0.00%
0.86%
12.50%
0.37%
0.03%
2.12%
4.63%
1.14%
0.06%
4.72%
1.97%
0.05%
4.50%
0.00%
0.68%
0.05%
0.53%
0.00%
0.15%
0.89%
1.36%
13.76%
15.30%
100.00%
5,919,822
27,177,181
1,498,771
2,201,841
2,587,416
2,986,751
13,510,737
3,518,261
3,590,046
5,721,718
17,636,677
10,420,811
4,247,719
36,028,311
581,571
2,719,365
23,435,295
36,831,511
6,534,660
1,416,193
5,042,693
1,154,084
495,859
11,266,135
323,000
2,153,155
397,203
3,626,013
21,610,136
669,688
272,942
13,678,172
495,829,670
124,442,196
889,525,603
0.67%
3.06%
0.17%
0.25%
0.29%
0.34%
1.52%
0.40%
0.40%
0.64%
1.98%
1.17%
0.48%
4.05%
0.07%
0.31%
2.63%
4.14%
0.73%
0.16%
0.57%
0.13%
0.06%
1.27%
0.04%
0.24%
0.04%
0.41%
2.43%
0.08%
0.03%
1.54%
55.74%
13.99%
100.00%
5,804,329
9,415
839,676
3,573,715
3,537,268
1,577,246
456,776
323,007
3,399,734
518,726,917
539
1,070,613
80,787,473
673,752
241,257
32,455,017
4,600,213
3,134,964
5,271,293
49,250
518,822
7,336,285
3,146,971
3,374,569
217,179
66,428
73,181
100
45,712
251,885
13,498,271
86,649,599
781,711,456
0.74%
0.00%
0.11%
0.46%
0.00%
0.45%
0.20%
0.06%
0.04%
0.43%
66.36%
0.00%
0.14%
10.33%
0.09%
0.03%
4.15%
0.59%
0.40%
0.00%
0.67%
0.01%
0.07%
0.94%
0.40%
0.43%
0.03%
0.01%
0.01%
0.00%
0.01%
0.03%
1.73%
11.08%
100.00%
221

Gross advances
(Rupees in 000)

Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Cement
Sugar
Financial
Insurance
Paper and allied
Surgical and metal
Contractors
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Airlines
Cables
Construction
Engineering
Glass and allied
Hotels
Infrastructure
Media
Polyester and fiber
Telecommunication
Individuals
Others
45.2.2
6,436,929
63,412,533
16,023,464
6,264,208
21,485,938
15,984,029
2,393,256
3,427,465
2,141,611
6,189,827
9,599,799
2,903,457
56,734,730
815,020
371,234
8,943,375
17,509,608
4,437,555
286,356
12,820,978
7,557,066
832,925
19,918,461
1,883,000
1,127,890
131,094
3,960,279
638,644
486,273
4,514,939
9,959,155
60,238,375
61,264,969
430,694,442
Percent
1.49%
14.72%
3.72%
1.45%
4.99%
3.71%
0.56%
0.80%
0.50%
1.44%
2.23%
0.00%
0.67%
13.17%
0.19%
0.09%
2.08%
4.07%
1.03%
0.07%
2.98%
1.75%
0.19%
4.62%
0.44%
0.26%
0.03%
0.92%
0.15%
0.11%
1.05%
2.31%
13.99%
14.22%
100.00%
Segment by sector
(Rupees in 000)
15,784,908
37,837,882
1,754,995
2,632,554
2,923,552
2,059,022
2,916,842
5,347,923
3,903,157
6,288,496
14,685,622
14,416,808
2,645,120
20,191,121
990,948
2,052,536
28,960,618
41,727,965
7,160,535
1,926,353
11,203,397
5,413,479
79,424
10,818,933
762,599
2,093,081
648,509
3,610,021
5,652,867
594,501
195,858
10,557,710
396,051,846
88,896,713
752,785,895
Contingencies and
commitments
Percent
2.10%
5.03%
0.23%
0.35%
0.39%
0.27%
0.39%
0.71%
0.52%
0.84%
1.95%
1.92%
0.35%
2.68%
0.13%
0.27%
3.85%
5.54%
0.95%
0.26%
1.49%
0.72%
0.01%
1.44%
0.10%
0.28%
0.09%
0.48%
0.75%
0.08%
0.03%
1.40%
52.61%
11.81%
100.00%
(Rupees in 000)
4,054,798
75,359
13,478,641
5,505,733
98,404
2,342,064
571,719
536,224
388,343
2,629,068
316,365,542
24,413
7,848,109
38,220,380
711,440
131,086
24,567,559
2,745,136
1,755,309
22,535
4,589,076
186,170
186,093
7,401,252
3,323,884
2,627,272
21,028
66,063
51,535
364
3,751,277
8,844,188
110,096,739
563,216,803
Percent
0.72%
0.01%
2.39%
0.98%
0.02%
0.42%
0.10%
0.10%
0.07%
0.47%
56.17%
0.00%
1.39%
6.79%
0.13%
0.02%
4.36%
0.49%
0.31%
0.00%
0.81%
0.03%
0.03%
1.31%
0.59%
0.47%
0.00%
0.01%
0.00%
0.01%
0.00%
0.67%
1.57%
19.55%
100.00%
2013
Gross advances
(Rupees in 000)
Public / Government
Private
2012
Deposits
100,103,489
361,571,509
461,674,998
Percent
21.68%
78.32%
100.00%
Deposits
(Rupees in 000)
61,402,925
828,122,678
889,525,603

Percent
6.90%
93.10%
100.00%
(Rupees in 000)
87,352,121
694,359,335
781,711,456
Percent
11.17%
88.83%
100.00%
2012
Gross advances
(Rupees in 000)
Public / Government
Private
222
Annual Report 2013
105,607,720
325,086,722
430,694,442
Percent
24.52%
75.48%
100.00%
Deposits
(Rupees in 000)
55,509,346
697,276,549
752,785,895

Percent
7.37%
92.63%
100.00%
(Rupees in 000)
117,388,866
445,827,937
563,216,803
Percent
20.84%
79.16%
100.00%

45.2.3
Details of non performing advances and specific provisions by class of business segment
2013
2012
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
------------------------------------ (Rupees in 000) ---------------------------------Chemical and pharmaceuticals
Agri business
Textile spinning
Textile weaving
Textile composite
Textile others
Sugar
Financial
Paper and allied
Wholesale traders
Fertilizer dealers
Sports goods
Food industries
Construction
Engineering
Glass and allied
Hotels
Polyester and fiber
Individuals
Others
45.2.4
259,484
1,098,563
4,139,842
854,368
5,891,133
3,047,785
157,837
228,623
226,896
2,083,465
183,833
3,955,581
418,260
1,834,356
75,324
63,960
862,616
3,964,091
3,124,714
367
485,993
2,355,095
14,338,751
5,183,995
54,834,932
259,484
879,874
4,079,091
788,253
4,692,948
2,926,837
52,067
221,434
180,736
1,725,930
183,833
3,570,269
395,321
1,660,644
68,567
63,960
805,516
3,623,960
974,242
367
485,993
2,284,036
11,509,679
3,064,904
44,497,945
312,746
1,313,254
5,499,634
1,126,543
5,710,107
3,640,690
160,424
242,670
264,702
2,231,888
201,492
6,480,916
397,813
1,667,571
72,148
126,960
989,530
4,085,882
550,061
4,205
485,993
2,362,823
15,300,261
5,221,844
58,450,157
256,259
954,821
4,961,322
877,388
4,409,573
3,072,455
41,956
242,670
191,313
1,629,271
201,492
3,079,402
305,470
1,483,440
67,811
126,960
884,938
3,323,093
524,271
4,205
145,826
2,106,295
11,642,650
3,064,468
43,597,349
Details of non performing advances and specific provision by sector

2013
2012
Classified
Specific
Classified
Specific
advances
provision held
advances
provision held
------------------------------------ (Rupees in 000) ---------------------------------Public / Government
Private
1,400,653
53,434,279
54,834,932
44,497,945
44,497,945
2,677,481
55,772,676
58,450,157
43,597,349
43,597,349
223

45.2.5
Geographical segment analysis

2013
Profit before
taxation
Total assets
employed
Net assets
employed
Contingencies and
commitments
------------------------------------------ (Rupees in 000) -------------------------------------------Pakistan operations
22,946,610
774,128,719
64,326,829
476,145,109
Middle East
Europe
Africa
4,682,467
195,215
21,990
1,195,139
(76,243)
6,018,568
28,965,178
262,036,474
3,283,908
1,500,847
78,214,319
2,040,519
347,076,067
1,121,204,786
31,735,784
2,137,392
394,452
11,197,232
1,481,458
46,946,318
111,273,147
232,101,989
1,694
248,766
87,750,991
151,391
320,254,831
796,399,940
2012
Profit before
taxation
Total assets
employed
Net assets
employed
Contingencies and
commitments
------------------------------------------ (Rupees in 000) -------------------------------------------Pakistan operations
23,980,347
706,178,722
58,762,442
373,701,788
Middle East
Europe
Africa
3,401,778
184,364
18,377
639,851
91,262
4,335,632
28,315,979
213,543,526
3,782,679
696,218
70,651,011
1,443,786
290,117,220
996,295,942
28,462,965
1,850,136
359,907
11,065,070
1,427,178
43,165,256
101,927,698
139,676,024
3,832
127,326
75,035,859
214,843,041
588,544,829
Total assets employed include intra group items of Rs. 37,572.070 million (2012: Rs. 33,949.584 million).
Contingencies and commitments include intra group items of Rs. 14,688.484 million (2012: Rs. 25,328.026 million).
45.3
Market risk
Market risk is the risk that the fair value of a financial instrument will fluctuate due to movements in market prices. It results from changes
in interest rates, exchange rates and equity prices as well as from changes in the correlations between them. Each of these components of
market risk consists of a general market risk and a specific market risk that is driven by the nature and composition of the portfolio.
Measuring and controlling market risk is usually carried out at a portfolio level. However, certain controls are applied, where necessary,
to individual risk types, to particular books and to specific exposures. Controls are also applied to prevent any undue risk concentrations
in trading books, taking into account variations in price, volatility, market depth and liquidity. These controls include limits on exposure to
individual market risk variables as well as limits on concentrations of tenors and issuers.
Trading activities are centered in the Treasury and Capital Markets Group which facilitates clients and also runs proprietary positions. The
Group is active in the cash and derivative markets for equity, interest rate and foreign exchange.
The Market and Treasury Risk division performs market risk management activities. Within this division, the Market Risk Management unit
is responsible for the development and review of market risk policies and processes, and is involved in research, financial modeling and
testing / implementation of risk management systems, while Treasury Middle Office is responsible for implementation and monitoring of
market risk and other policies, escalation of deviations to senior management, and MIS reporting.
224
Annual Report 2013

The functions of the Market Risk Management unit are as follows:
45.3.1
To keep the market risk exposure within the Groups risk appetite as assigned by the BoD and the BRMC.
To develop, review and upgrade procedures for the effective implementation of market risk management policies approved
by the BoD and BRMC.
To review new product proposals and propose / recommend / approve procedures for the management of their market risk.
Various limits are assigned to different businesses on a product/portfolio basis. The products are approved through product
programs, where risks are identified and limits and parameters are set. Any transactions / products falling outside these
product programs are approved through separate transaction / product memos.
To maintain a comprehensive database for performing risk analysis, stress testing and scenario analysis. Stress testing
activities are performed on a quarterly basis on both the Banking and Trading books.
Foreign Exchange Risk

2013
Assets
Off - balance
Net currency
sheet items
exposure
----------------------------------------------- (Rupees in 000) ----------------------------------------------Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahrain Dinar
Qatari Riyal
Other Currencies
732,590,401
173,834,847
29,872,303
94,902
3,241,557
82,894,888
13,173,637
17,887,202
30,042,979
1,083,632,716
Liabilities
607,729,972
113,810,034
42,266,411
9,362
9,181,515
125,321,539
19,452,215
24,690,385
29,898,136
972,359,569
(24,350,955)
(53,848,794)
11,957,543
(73,527)
6,651,595
42,858,583
6,004,329
6,741,932
4,059,294
-
100,509,474
6,176,019
(436,565)
12,013
711,637
431,932
(274,249)
(61,251)
4,204,137
111,273,147
2012
Assets
Off - balance
Net currency
sheet items
exposure
----------------------------------------------- (Rupees in 000) ----------------------------------------------Pakistan Rupee
US Dollar
Pound Sterling
Japanese Yen
Euro
UAE Dirham
Bahrain Dinar
Qatari Riyal
Other Currencies
710,483,912
111,059,684
28,107,458
115,709
4,551,081
65,800,190
10,596,389
10,103,904
21,528,031
962,346,358
Liabilities
602,003,574
86,317,108
34,511,774
12,654
7,872,559
80,477,425
16,424,191
11,665,772
21,133,603
860,418,660
(16,752,154)
(17,742,489)
5,948,908
(55,545)
3,514,545
14,074,639
5,828,363
2,622,384
2,561,349
-
91,728,184
7,000,087
(455,408)
47,510
193,067
(602,596)
561
1,060,516
2,955,777
101,927,698
225

Foreign Exchange Risk is the risk that the fair value of a financial instrument will fluctuate due to changes in foreign
exchange rates. Exposures are monitored by currency to ensure that they remain within the established limits
for each currency. Exposures are also monitored on an overall basis to ensure compliance with the Banks SBP
approved Foreign Exchange Exposure Limit.
The Group is an active participant in the cash and derivatives markets for currencies and carries currency risk
from these trading activities, conducted primarily by the Treasury and Capital Markets Group (TCM). These trading
exposures are monitored through prescribed stress tests and sensitivity analyses.
The Groups reporting currency is the Pakistan Rupee, but its assets, liabilities, income and expenses are
denominated in multiple currencies. From time to time, TCM proactively hedges foreign currency exposures
resulting from its market making activities, subject to pre-defined limits.
45.3.2
Equity position risk

Equity position risk is the risk that the fair value of a financial instrument will fluctuate due to changes in the prices
of individual stocks or the levels of equity indices. The Groups equity book comprises of held for trading (HFT) and
available for sale (AFS) portfolios. The objective of the HFT portfolio is to make short-term capital gains, whilst the
AFS portfolio is maintained with a medium term view of earning both capital gains and dividend income. Product
program manuals have been developed to provide guidelines on the objectives and policies, risks and mitigants,
limits and controls for the equity portfolios of the Group.
45.3.3
Yield / interest rate risk

Interest rate risk is the risk that fair value of a financial instrument will fluctuate as a result of changes in interest rates,
including changes in the shape of yield curves. Interest rate risk is inherent in many of the Groups businesses and
arises from mismatches between the contractual maturities or the re-pricing of on and off balance sheet assets and
liabilities. The interest rate sensitivity profile is prepared on a quarterly basis based on the re-pricing or contractual
maturities of assets and liabilities.
Interest rate risk is monitored and managed by performing periodic gap analysis, sensitivity analysis and stress
testing and taking appropriate actions where required.
226
Annual Report 2013
227
116,576,478
35,829,960
5,723,576
(5,723,576)
10,550,240
(10,550,240)
238,732,897
(202,902,937)
-

Commodity futures
30,526,629
111,273,147
16,600,691
41,077,730
889,525,603
665,328
1,325
20,454,948
968,325,625
80,746,518
(261,104,779)
(261,104,779)
4,135,440
100,447,698
(96,312,258)
-
16,219,982
365,434,223
71
381,654,276
(265,240,219)
116,414,057
36,559,602
-
404,946,323
10,336,987
22,834,390
1,049,072,143
7,145,518
12,819,410
15,151,655
44,737,872
89,591,601
32,658,606
29,858,038
458,846,198
Total net assets
0%
7.85%
3.86%
10.85%
12.69%
0%
0%
0.01%
0.58%
4.28%
9.67%
9.27%
52,367,867
313,472,646
28,397,244
2,085,405
(3,146,655)
6,114,000
(6,114,000)
76,447,618
(46,989,124)
-
14,431,089
66,794,553
665,328
144
81,891,114
285,075,402
366,966,516
211,377,482
-
1,154,535
3,255,439
151,179,060
150,370,958
98,003,091
1,908,615
245,757
(245,757)
4,436,240
(4,436,240)
61,463,822
(59,555,207)
-
4,809,219
37,469,032
220
42,278,471
96,094,476
138,372,947
77,112,829
-
3,388,963
5,095,175
52,775,980
155,565,907
14,801,875
(9,606,926)
140,764,032
720,836
17,405,950
430
18,127,216
14,801,875
32,929,091
6,614,072
-
139,745
1,585,137
24,590,137
327,411
373,759
(46,348)
-
1,642,946
47,408,647
460
49,052,053
(9,934,337)
39,117,716
25,686,218
-
211,119
4,759,685
8,460,694
209,274,004
53,708,097
986,492
9,428,013
10,414,505
53,708,097
64,122,602
18,304,605
-
45,817,997
256,127,496
46,853,492
1,061,250
2,156,008
(1,094,758)
-
1,012,085
12,288,784
13,300,869
45,792,242
59,093,111
12,002,748
-
47,090,363
294,304,457
38,176,961
1,236,406
(1,236,406)
-
855,497
24,254,024
25,109,521
38,176,961
63,286,482
7,141,599
-
56,144,883
304,262,943
9,958,486
2,955,846
2,955,846
9,958,486
12,914,332
10,147,168
-
2,767,164
116,576,478
(187,686,465)
16,600,691
399,584
306,086,531
20,454,948
343,541,754
(187,686,465)
22,834,390
155,855,289
10,336,987
82,446,083
14,944,834
10,947
25,282,048
2013
Non-interest
bearing
Upto 1
Over 1
Over 3
Over 6
Over 1
Over 2
Over 3
Over 5
Over 10
financial
month
month to 3
months to 6
months to 1
year to 2
years to 3
years to 5
years to 10
years
instruments
months
months
year
years
years
years
years
------------------------------------------------------------------------------------------------------------------------- (Rupees in 000) ------------------------------------------------------------------------------------------------------------------------Total
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Other assets
Assets
Investments
Advances
Performing
Non-performing
Effective
yield /
interest
rate
%
45.3.4 Mismatch of interest rate sensitive assets and liabilities
228
Annual Report 2013

94,580,024
29,604,974
8,059,417
(8,059,417)
12,490,616
(12,490,616)
37,234
(37,234)
308,867
141,981,927
(112,686,309)
489

Commodity futures
101,927,698
Total net assets
(189,289,656)
(189,289,656)
14,860,659
1,000,000
90,798,024
(76,937,365)
-
46,523,058
282,492,057
59
329,015,174
(204,150,315)
81,080,257
124,864,859
372,244,285
13,589,976
15,336,009
922,059,512
7,615,382
69,693,579
752,785,895
9,319,264
2,109
17,668,233
857,084,462
64,975,050
7,678,267
10,934,603
10,435,736
14,735,996
94,846,802
21,967,703
22,828,834
381,245,903
36,952,648
0%
10.46%
4.33%
11.91%
15.28%
0%
0%
0.01%
1.15%
4.47%
10.64%
11.28%
(49,398,271)
139,891,385
11,829,766
8,072,150
(8,072,150)
37,335,070
(25,505,793)
489
15,672,056
50,454,475
9,319,264
125
75,445,920
128,061,619
171,443,824
203,507,539
3,020,540
3,965,289
25,077,886
(4,177,290)
45,220,981
263,064
2,444,083
(4,615,333)
4,418,466
(4,418,466)
37,234
(37,234)
12,599,533
(10,165,219)
-
1,373,975
76,489,504
189
77,863,668
44,957,917
50,557,910
122,821,585
731,574
4,610,064
66,922,037
74,335,736
78,513,026
1,171,368
1,000,000
(1,000,000)
1,249,300
(77,932)
-
1,202,386
53,482,018
401
54,684,805
77,341,658
18,340,550
132,026,463
150,128
2,658,245
110,877,540
86,566,132
12,230,396
8,739,533
1,335
8,740,868
12,230,396
9,837,757
20,971,264
291,449
10,842,058
111,878,121
25,311,989
4,288,883
4,288,883
25,311,989
11,184,587
29,600,872
18,416,285
185,600,505
73,722,384
291,449
(291,449)
-
1,371,554
4,515,096
5,886,650
73,722,384
13,917,006
79,609,034
65,692,028
215,817,726
30,217,221
1,480,117
3,323,885
(2,152,635)
308,867
-
3,549,786
16,056,911
19,606,697
28,737,104
7,159,346
48,343,801
41,184,455
227,072,554
11,254,828
1,556
1,556
11,254,828
8,639,624
11,256,384
2,616,760
94,580,024
(132,492,530)
7,615,382
764
256,265,862
17,668,233
281,550,241
(132,492,530)
83,424
13,589,976
15,336,009
149,057,711
87,168,535
7,130,858
868,051
24,880,858
2012
Non-interest
bearing
Upto 1
Over 1
Over 3
Over 6
Over 1
Over 2
Over 3
Over 5
Over 10
financial
month
month to 3
months to 6
months to 1
year to 2
years to 3
years to 5
years to 10
years
instruments
months
months
year
years
years
years
years
------------------------------------------------------------------------------------------------------------------------- (Rupees in 000) ------------------------------------------------------------------------------------------------------------------------Total
Liabilities
Bills payable
Borrowings
Subordinated loans
Other liabilities
Assets
Investments
Advances
Performing
Non-performing
Other assets
Effective
yield /
interest
rate
%
229
The Groups approach to liquidity management is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
without incurring unacceptable losses or risking sustained damage to business franchises. A centralized approach is adopted, based on an integrated framework incorporating an assessment of all
material known and expected cash flows and the availability of collateral which could be used to secure additional funding if required. The framework entails careful monitoring and control of the daily
liquidity position, and regular liquidity stress testing under a variety of scenarios. These encompass both normal and stressed market conditions, including general market crises and the possibility
that access to markets could be impacted by a stress event affecting some part of the Groups business.
The Assets and Liability Management Committee (ALCO) of the Group is responsible for the oversight of liquidity management and meets on a monthly basis or more frequently, if required.
Liquidity risk is the risk that the Bank may be unable to meet its obligations or to fund increases in assets as they fall due without incurring unacceptable cost or losses.
Liquidity Risk
Represented by:
Share capital
Reserves
Net assets
Liabilities
Bills payable
Borrowings
Subordinated loan
Other liabilities
Assets
Investments
- Non-performing
Deferred tax assets
Other assets
12,241,798
38,049,345
45,208,302
3,487,918
12,285,784
111,273,147
16,600,691
41,077,730
889,525,603
665,328
1,325
1,395,138
23,093,754
972,359,569
111,273,147
89,591,601
32,658,606
29,858,038
458,846,198
404,946,323
10,336,987
28,037,980
29,356,983
1,083,632,716
Total
6,196,157
20,575,017
142,584,790
71
5,914,687
175,270,722
82,892,299
47,380,662
27,274,893
14,438,406
80,798,666
77,563,079
3,293,183
7,414,132
258,163,021
Upto 1 month
4,218,618
12,530,095
92,551,339
332,664
144
3,174,083
112,806,943
143,918,389
1,399,168
1,480,731
2,501,703
144,476,768
98,154,034
133,314
8,579,614
256,725,332
4,134,414
3,446,897
75,414,032
220
1,316,647
84,312,210
17,002,408
1,371,240
3,552,111
5,717,625
46,202,904
42,703,826
221,602
1,545,310
101,314,618
2,051,502
1,326,972
91,579,875
332,664
460
348,784
1,453,421
97,093,678
(20,915,795)
1,985,046
211,122
3,797,320
28,317,899
33,905,550
389,969
7,570,977
76,177,883
720,836
55,893,050
430
348,784
1,110,321
58,073,421
(13,484,549)
2,761,460
139,749
1,872,311
23,140,643
14,551,355
904,530
1,218,824
44,588,872
610,332
40,404,193
348,784
501,008
41,864,317
37,210,682
2,118,942
168,021
53,438,409
22,168,995
917,950
262,682
79,074,999
1,012,085
49,765,585
348,786
683,308
51,809,764
58,815,149
3,403,814
863,329
36,912,607
64,747,070
3,490,141
1,207,952
110,624,913
855,496
95,529,668
2,489,242
98,874,406
(8,209,890)
6,757,328
499,323
37,749,586
42,804,825
2,077,836
775,618
90,664,516
245,803,071
6,451,037
252,254,108
(185,955,546)
22,413,941
7,808,716
8,347,589
10,336,987
16,609,455
781,874
66,298,562
2013
Over 1 month
Over 3 months
Over 6 months
Over 1 year
Over 2 years
Over 3 years
Over 5 years
Over 10 years
to 3 months
to 6 months
to 1 year
to 2 years
to 3 years
to 5 years
to 10 years
-------------------------------------------------------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------------------------------------------------------------
Assets and Liabilities having contractual maturity dates are bucketed as per their respective maturities. The maturity profile of non-contractual deposits and bills payable is estimated using an
Exponentially Weighted Moving Average model based on data for the last seven years. The maturity profile of certain non-contractual assets and liabilities which are related to specific assets and
liabilities follows the maturity profile of the underlying asset or liability. The maturity profile of other non-contractual assets and liabilities is expected to follow historical patterns of behavior. The
methodology and the assumptions used to derive the maturity profile of non-contractual assets and liabilities have been approved by ALCO.
45.4.1 Maturities of assets and liabilities - based on working prepared by the Assets and Liabilities Management Committee (ALCO) of the Bank
45.4
230
Annual Report 2013
32,298,690
39,305,127
2,827,060
101,927,698
15,255,023
12,241,798
(4,126,288)
165,550,089
101,927,698
860,418,660
59
109,981,828
6,169,289
Reserves
2,701,052
46,697,861
20,145,946
856,485
2,109
9,319,264
752,785,895
Share capital
Represented by:
Net assets
Other liabilities
Subordinated loan
7,615,382
69,693,579
161,423,801
962,346,358
Bills payable
6,519,216
126,115
69,324,798
28,162,016
27,460,839
Borrowings
Liabilities
Other assets
Deferred tax assets
14,832,602
9,868,652
381,245,903
371,001,659
Investments
- Non-performing
11,333,354
22,828,834
45,120,369
19,131,297
94,846,802
21,967,703
Assets
Upto 1 month
Over 1 month
to 3 months
Over 3 months
to 6 months
2012
Over 6 months
to 1 year
Over 1 year
to 2 years
Over 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
31,722,778
98,975,463
1,800,668
125
2,333,268
82,756,445
10,307,277
1,777,680
130,698,241
5,261,061
282,592
96,824,284
19,992,107
4,072,539
2,419,779
1,845,879
32,372,511
68,986,049
854,483
189
59,633,589
6,764,183
1,733,605
101,358,560
5,215,744
441,560
39,172,691
52,591,389
1,876,956
266,499
1,793,721
93,950,440
73,120,361
1,007,178
214,121
401
333,868
68,707,863
1,453,885
1,403,045
167,070,801
6,822,346
264,162
27,473,161
127,391,250
2,362,578
150,128
2,607,176
923,569
48,888,269
640,363
214,121
1,335
667,728
47,020,431
344,291
49,811,838
588,352
941,081
19,848,008
22,821,458
2,015,356
3,597,583
4,604,076
34,751,818
453,414
214,121
2,400
33,588,244
493,639
39,355,894
342,734
927,795
11,611,657
23,399,768
300,000
2,773,940
83,211,061
51,791,859
907,610
214,121
4,800
49,315,085
1,350,243
135,002,920
1,272,242
3,294,400
57,042,242
68,983,070
4,410,966
(8,676,969)
109,909,198
2,589,397
5,977,200
99,060,401
2,282,200
101,232,229
925,044
2,403,638
46,817,444
43,003,754
8,082,349
(132,053,479)
208,445,553
5,723,544
202,722,009
76,392,074
1,215,277
18,779,496
14,832,602
2,887,374
13,194,455
868,051
24,614,819
-------------------------------------------------------------------------------------------------------------------------- (Rupees in 000) ---------------------------------------------------------------------------------------------------------------------------
Total
231
45,208,302
3,487,918
111,273,147
12,285,784
38,049,345
12,241,798
Reserves
111,273,147
(394,908,330)
17,929,610
693,316,748
23,093,754
1,395,138
71
636,816,221
20,575,017
16,600,691
972,359,569
1,395,138
1,325
665,328
Share capital
Represented by:
Net assets
Other liabilities
Subordinated loans
889,525,603
41,077,730
16,600,691
298,408,418
1,083,632,716
Borrowings
21,675,754
3,293,183
80,052,469
62,125,768
14,438,405
27,274,895
89,547,944
29,356,983
Bills payable
Liabilities
Other assets
Deferred tax asset
28,037,980
415,283,310
Advances
29,858,038

458,846,198
32,658,606
Investments
89,591,601
Assets
Upto 1 month
Over 1 month
to 3 months
Over 3 months
to 6 months
Over 1 year to
2 years
2013
Over 6 months
to 1 year
Over 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
165,972,217
86,503,695
429,485
144
332,664
73,211,307
12,530,095
252,475,912
6,047,295
133,314
98,154,034
144,158,835
2,501,703
1,480,731
39,029,817
60,279,007
371,837
220
56,460,053
3,446,897
99,308,824
909,413
221,602
42,705,172
46,202,903
5,717,625
3,552,109
(12,190,862)
62,304,403
824,676
460
332,664
59,819,631
1,326,972
50,113,541
214,454
389,969
33,163,619
12,337,056
3,797,320
211,123
23,188,386
18,886,887
442,874
430
17,722,747
720,836
42,075,273
367,708
904,530
14,606,218
24,184,758
1,872,311
139,748
68,888,891
11,524,761
10,914,429
610,332
80,413,652
65,105
917,950
22,168,995
57,093,581
168,021
108,008,760
11,690,446
10,678,361
1,012,085
119,699,206
77,254
3,490,141
64,747,070
50,477,755
863,329
43,657
74,418,384
25,383,782
625,532
23,902,754
855,496
99,802,166
2,041,194
42,804,825
54,456,823
499,324
38,865,884
2,469,840
2,469,740
100
41,335,724
16,646,097
16,880,908
7,808,719
---------------------------------------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------------------------
Total
The maturity profile presented below has been prepared as required by IAS on the basis of contractual maturities, except for products that do not have a contractual maturity which are shown in the first bucket.
45.4.2 Maturities of assets and liabilities - based on contractual maturity of the assets and liabilities of the Group
232
Annual Report 2013

32,298,690
39,305,127
2,827,060
101,927,698
15,255,023
12,241,798
101,927,698
(354,235,907)
14,846,104
612,824,431
856,485
59
542,808,540
20,145,946
Reserves
7,615,382
46,697,861
860,418,660
856,485
2,109
9,319,264
752,785,895
Share capital
Represented by:
Net assets
Other liabilities
Subordinated loans
7,615,382
69,693,579
258,588,524
962,346,358
Borrowings
25,875,950
126,115
96,793,063
16,861,069
11,333,354
19,131,297
88,467,676
28,162,016
Bills payable
Liabilities
Other assets
Deferred tax asset
27,460,839
385,834,261
381,245,903
22,828,834
Advances
21,967,703
Investments
94,846,802
Assets
Upto 1 month
Over 1 month
to 3 months
Over 3 months
to 6 months
Over 1 year to
2 years
2012
Over 6 months
to 1 year
Over 2 years
to 3 years
Over 3 years
to 5 years
Over 5 years
to 10 years
Over 10 years
15,326,293
80,914,567
994,484
125
2,333,268
67,279,413
10,307,277
96,240,860
616,112
282,592
69,356,020
19,493,818
4,072,539
2,419,779
43,499,298
51,036,618
61,819
189
44,210,427
6,764,183
94,535,916
186,821
441,560
39,172,691
52,591,389
1,876,956
266,499
101,732,686
50,102,947
367,494
401
333,868
47,947,299
1,453,885
151,835,633
688,483
264,162
27,473,161
120,897,121
2,362,578
150,128
31,558,313
14,499,068
27,047
1,335
667,728
13,458,667
344,291
46,057,381
431,478
941,081
19,848,008
22,821,458
2,015,356
28,742,428
7,713,580
2,400
7,217,541
493,639
36,456,008
216,787
927,795
11,611,657
23,399,769
300,000
120,499,815
8,966,282
209,230
4,800
7,402,009
1,350,243
129,466,097
146,385
3,294,400
57,042,242
68,983,070
60,179,883
32,044,953
1,323,554
5,977,200
22,461,999
2,282,200
92,224,836
2,403,638
46,817,444
43,003,754
54,624,889
2,316,214
2,316,214
56,941,103
18,779,496
17,719,975
13,194,455
868,051
6,379,126
--------------------------------------------------------------------------------------------------------------- (Rupees in 000) ----------------------------------------------------------------------------------------------------------
Total

45.5
Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external
events.
The Operational Risk & Basel II Division is primarily responsible for the oversight of operational risk management across the
Group. The operational risk management framework of the Group is governed by the Operational Risk Management Policy and
Procedures, while the implementation is supported by an operational risk management system and designated operational risk
coordinators within different units across the Group. The framework is in line with international best practices, flexible enough to
implement in stages and permits the overall approach to evolve in response to organizational learning and future requirements.
Loss data, collected through a well defined program, is evaluated and processes are reviewed for improvements in mitigation
techniques. Periodic workshops are conducted for Risk & Control Self Assessment and key risk exposures are identified and
assessed against existing controls to evaluate improvement opportunities. Key Risk Indicators are also defined for monitoring of
risk exposures.
Business Continuity Plans have been implemented across the bank, clearly defining the roles and responsibilities of respective
stakeholders, and covering recovery strategy, IT and structural backups, scenario and impact analyses and testing directives. The
outsourcing policy has also been augmented to address risks associated with such arrangements.
46.
ISLAMIC BANKING BUSINESS

The Bank operates 22 (2012: 19) Islamic Banking Branches and 15 (2012: 15) Islamic Banking windows.
The statement of financial position of the Banks Islamic Banking Branches as at December 31, 2013 is as follows:
Note
ASSETS
Investments
Due from Head Office
Other assets
Total Assets
LIABILITIES
Bills payable
Current accounts
Saving accounts
Term deposits
Deposits from financial institutions - remunerative
Due to Head Office
Other liabilities
NET ASSETS
REPRESENTED BY:
Islamic Banking Fund
Accumulated losses
46.1
2013
2012
------------- (Rupees in 000) -------------951,157
1,701,743
7,363,524
5,183,080
117,974
2,144,911
153,963
17,616,352
748,333
1,293,290
8,036,026
3,118,266
100,250
173,481
13,469,646
54,532
960
2,328,416
2,490,262
1,994,823
9,980,829
16,794,330
191,564
17,040,426
575,926
1,863,420
2,533,628
3,141,108
4,956,027
12,494,183
272,971
162,915
12,931,029
538,617
681,000
(156,679)
524,321
51,605
575,926
681,000
(194,579)
486,421
52,196
538,617
233

The profit and loss account of the Banks Islamic Banking branches for the year ended December 31, 2013 is as follows:
2013
2012
---------- (Rupees in 000) ----------Return earned
Return expensed
Reversal for diminution in value of investments - net
(Reversal) / charge against assets given on Ijarah
Net return after provisions
Other Income
Dividend income
Other income
Total other income
Other Expenses
Total other expenses
Net profit for the year
Accumulated losses brought forward
Accumulated losses carried forward
Remuneration to Shariah Advisor
46.1

Financings
Murabaha
Ijarah
Musharaka
Diminishing Musharaka
Salam
Provision against financings
Advances
Advances and receivables against Ijarah
Advances for Murabaha
Provision against advances for Murabaha
Profit receivable against financings
46.2
234
Charity Fund
Opening balance
Payments during the year
Closing balance
Annual Report 2013
1,511,101
895,282
615,819
1,266,785
865,577
401,208
1,525
(1,438)
(3,602)
(3,515)
619,334
7,880
(37,216)
12,626
(16,710)
417,918
14,913
20,187
7,291
9,021
8,584
59,996
679,330
12,124
60,432
34,504
860
14,906
122,826
540,744
638,933
2,497
641,430
516,659
19,006
535,665
37,900
5,079
(194,579)
(156,679)
(199,658)
(194,579)
1,045
2,329
3,232,150
867,257
687,448
281,040
(31,389)
5,036,506
1,394,021
982,463
55,556
192,924
347,171
(29,864)
2,942,271
143,753
17,498
(17,498)
143,753
2,821
5,183,080
171,780
17,531
(17,498)
171,813
4,182
3,118,266
6,476
262
(6,400)
338
8,967
959
(3,450)
6,476

46.3
Disclosures for profit and loss distribution and pool management

During 2013, UBL Ameen (the Mudarib) maintained two pools which accept deposits on the basis of Mudaraba
from depositors (Rabbulmaal). Pool funds are invested in Islamic modes of financing and investments. The profit
earned on the pool is therefore susceptible to the same market and credit risks as discussed in note 44 to the
financial statements.
Ameen Daily Munafa Account (ADMA) Pool
The ADMA pool consists of deposits for the ADMA product. The net return on the pool is arrived at after deduction
of direct costs from the gross return earned on the pool. From the net return, profit is paid to the Mudarib in the ratio
of the Mudaribs equity in the pool to the total pool. The balance represents the distributable profit.
General Pool
The General pool consists of all other remunerative deposits. The net return on the pool is arrived at after deduction
of direct costs from the gross return earned on the pool. Currently, the entire net return is considered as distributable
profit without paying any profit to the Mudarib on its equity.
For both pools, the Mudaribs share is deducted from the distributable profit to calculate the profit to be allocated to
depositors. The allocation of the profit to various deposit categories is determined by the amount invested in that
category relative to the total pool, as well as by the weightage assigned to the various deposit categories.
The Mudaribs share for the year ended December 31, 2013 is Rs. 602 million (50% of distributable profit). Of this,
an amount of Rs. 293 million (49% of the Mudaribs share) was distributed back to depositors as Hiba. The rate of
profit earned on average earning assets was 9.7% per annum and the rate of profit paid on average deposits was
6.9% per annum.
46.4
Deployment of Mudaraba based deposits by class of business

Agri business
Textile
Sugar
Automobile
Financial
Food industries
Engineering
Glass and allied
Hotel
Plastic
Individuals
Government of Pakistan Sukuks
Others
2013
2012
------------- (Rupees in 000) ---------83,936
3,018,759
300,663
96,110
9,390
311,632
192,305
434,348
522,134
21,714
84,665
198,651
459,089
6,538,358
274,850
12,546,604
349,539
963,200
366,141
124,311
3,641
425,264
359,480
379,302
274,667
24,802
67,560
173,323
41,667
7,398,943
202,452
11,154,292
235

47.
NON-ADJUSTING EVENT AFTER THE BALANCE SHEET DATE

The Board of Directors in its meeting held on February 19, 2014 has proposed a cash dividend in respect of 2013
of Rs. 4.00 per share (2012: Rs. 3.50 per share). In addition, the Directors have also announced a bonus issue of
nil (2012: nil). These appropriations will be approved in the forthcoming Annual General Meeting. The consolidated
financial statements for the year ended December 31, 2013 do not include the effect of these appropriations which
will be accounted for in the consolidated financial statements for the year ending December 31, 2014.
48.
DATE OF AUTHORIZATION
These financial statements were authorized for issue on February 19, 2014 by the Board of Directors.
49.
GENERAL
49.1
Comparatives
Comparative information has been reclassified, rearranged or additionally incorporated in these consolidated
financial statements for the purposes of better presentation. Major reclassifications made are as follows:
49.2
Rs. 875 million has been reclassified from balances with other banks to lendings to financial institutions.
Rs. 2,478 million has been reclassified from deposits and other accounts to borrowings.
Rs. 583 million has been reclassified from other assets to other liabilities.
Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
Atif R. Bokhari
President &
236
Amin Uddin
Annual Report 2013
Director
Seerat Asghar
Director

Chairman
Annexure A as referred to in note 9.8 of the Groups

1)
Particulars of investments held in listed companies and Modarabas
Investee
Number of
shares /
certificates
held
Paid up value
per share /
certificate
(Rupees)
Total paid up
value
Cost
--------------(Rupees in 000)---------------

Attock Refinery Limited
D.G. Khan Cement
FFC Jordan-Bin Qasim
MCB Bank Limited
350,400
200,000
500,000
100,000
665,900
10.00
10.00
10.00
10.00
10.00
3,504
2,000
5,000
1,000
6,659
72,989
5,486
43,192
4,510
191,756
317,933

Agritech Limited
Aisha Steel Mills Limited
DP World
Engro Foods Limited
MCB Bank Limited
Maple Leaf Cement
PICIC Growth Fund
1st Fidelity Leasing Modaraba
14,087,108
5,104,000
21,000,000
6,926
3,500,000
4,250,000
22,400,000
45,400,000
17,500,000
33,228,500
83,300,500
982,100
18,369,500
200,000
26,798,500
6,428,000
580,100
22,450,000
705,000
600
997
10.00
10.00
10.00
2,106.49
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
10.00
140,871
51,040
210,000
14,590
35,000
42,500
224,000
454,000
175,000
332,285
833,005
9,821
183,695
2,000
267,985
64,280
5,801
224,500
7,050
6
10
493,049
55,362
481,790
18,968
359,776
568,267
569,358
1,803,141
1,981,068
1,547,277
3,868,783
280,441
439,560
43,735
460,629
157,910
279,771
617,037
131,287
10
26
14,157,245

Silk Bank Limited
JSC Alliance Bank
Chenab Limited
7,333,334
10,000,000
95,720
812,000
10.00
10.00
4,786.53
10.00
73,333
100,000
338,312
8,120
73,333
25,000
338,312
8,120
444,765
237

2)
Particulars of investments held in unlisted companies
Investee
Percentage
of holding
(%)
Number of
shares /
certificates
held
Breakup
value per
share
Paid up
value per
share
Cost
Based on
audited
accounts
as at
Name of Chief
Executive
Maj. Gen. M. Tauqeer

Ahmad Khan
----------(Rupees )----------- (Rupees in 000)

Pakistan Agricultural Storage &
Services Corporation Limited
18.3%
5,500
(127,104)
1,000
5,500
31-Mar-13
18.1%
1,979,295
77,606
Cinepax Limited
14.6%
5,037,200
10
50,372
30-Jun-12
Arif Baigmohamed
5.2%
7,698,441
13
10
21,100
31-Dec-12
Shafqat Sultana
National Institutional Facilitation

Technologies (Pvt.) Limited
8.6%
1,406,835
62
10
1,527
30-Jun-13
M. M. Khan
8.3%
79,200
22,519
100
100
30-Jun-13
Manzoor Ahmed
News-VIS Credit Information Services

(Pvt.) Limited
4.7%
32,500
(2)
10
325
30-Jun-13
Faheem Ahmad
4.4%
4,455,829
50,702
31-Dec-11
Salman Akhtar &

Kewan Khawaja
(Co-Chief Executive)
377,800
3,778
Not available
Not available
SME Bank Limited
1.7%
3,975,003
10
26,950
31-Dec-12
Naseer Durrani
SWIFT
0.0%
25
330,036
18,134
2,905
31-Dec-12
Gottfried Leibbrandt
0.0%
461
5,911
31-Dec-12
Ajay Banga
0.4%
216
146,848
27,938
2,235
31-Dec-12
Abdul Wahid Janahi
Tri Star Shipping Company
0.0%
15,000
250
243,350
238
Not available Not available
Annual Report 2013
Not available
Not available

3) Particulars of bonds
Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)
Held for trading

Sukuks
At Maturity
Bi-annually
6M KIBOR + 170bps
21,437

Government of Pakistan Ijarah Sukuk - VII
Government of Pakistan Ijarah Sukuk - IX
Government of Pakistan Ijarah Sukuk - XI
Government of Pakistan Ijarah Sukuk - XIV
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually

Cut off yield of 6M T-Bills minus 30 bps
1,001,752
2,785,000
500,000
1,900,000
6,186,752

At Maturity
At Maturity
Bi-annually
Bi-annually
7.125%
6.875%
3,803,343
8,821,093
12,624,436

Angol 2019 USD
EGYPT 2020
Kingdom of Jordan
State of Qatar 2030
Venezuela 2016
EGYPT
Banque Cent De Tunisie
Republic of Ghana
Republic of Sri Lanka
Republic of Sri Lanka
Republic of Zambia
Trade and Development Bank of Mongolia
UK Government - 2022
UK Government - 2023
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Annual
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
7.000%
7.750%
6.700%
6.450%
5.750%
5.500%
6.392%
8.500%
6.250%
5.875%
9.750%
6.392%
5.750%
5.750%
4.500%
8.500%
5.875%
6.250%
5.375%
8.500%
1.750%
2.250%
416,349
2,513,861
437,694
1,566,922
633,604
1,135,104
735,863
309,815
790,774
624,469
2,766,876
1,144,942
311,964
384,016
144,656
720,755
553,976
228,149
717,639
484,179
5,140,534
5,053,539
26,815,680
239

Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)

Bank of Ceylon 2017
CBQ Finance 2019
Dar Al Arkaan 2015
DEWA - 2016
DEWA - 2018
DEWA - 2020
EMAAR 2019
EMIRAT
IPIC GMTN 2022
JAFZA 2019
MAF Global 2019
Access Finance BV
AE Rotor Holding BV
African Bank Limited
AK Financial Kiralama AS
Alfa Bank (Alfa Bond)
Azerbaijan Railways
Banco Daycoval SA
Banco Industrial and Commercial
Bank of Ceylon
Bank of Georgia JSC
Bank of India London
Bahrain Telecom
Bharti Airtel International
BTG Investments LP
Canara Bank London
China Railway Resources
Credit Bank of Moscow
Dar Al-Arkan
Eastern and Southern African
Georgian Oil & Gas Corporation
GTB Finance BV
GTB Finance BV
Halyk Savings Bank-Kazakistan
Halyk Savings Bank-Kazakistan
ICICI Bank Ltd / Dubai
ICICI Bank Ltd / Hong Kong
IDBI Bank Ltd
Indian Overseas Bank
Industrial Senior Trust
Investcorp SA
JSC Georgian Railway
Mongolia International Bond
Mongolian Mining Corporation
National Savings Bank
Oschad Bank
Ottawa Holdings Pte Ltd
Russian Standard Bank
Saudi Electricity Global (SECO)
240
Annual Report 2013
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Callable
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Callable
At Maturity
At Maturity
Callable
Putable
At Maturity
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Quarterly
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
4.500%
6.875%
7.500%
10.750%
6.375%
3.000%
7.375%
6.400%
3.875%
5.500%
7.000%
5.250%
5.000%
7.250%
4.969%
8.125%
4.125%
7.750%
8.250%
6.250%
5.250%
6.875%
7.750%
3.625%
4.250%
5.125%
4.500%
5.250%
3.850%
7.700%
5.750%
6.375%
6.875%
6.000%
7.500%
7.125%
7.250%
4.800%
5.750%
4.375%
4.625%
5.500%
8.250%
9.875%
5.125%
8.875%
8.875%
8.250%
5.875%
9.250%
4.211%
211,567
519,521
517,550
411,988
10,721
3,367,368
2,796,625
1,046,701
628,871
217,748
1,042,447
521,733
264,276
923,581
632,825
939,834
220,990
120,829
139,496
384,158
426,072
1,010,364
814,361
244,576
638,504
26,751
657,045
270,784
21,359
687,911
473,653
740,666
244,035
580,962
112,852
116,893
584,263
265,362
265,596
208,906
207,800
528,220
558,506
135,266
308,132
513,205
344,315
367,824
609,349
763,165
341,303

Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)
Sistema JSFC
TF Varlik Kiralama AS
Theta Capital Pte Ltd
Tullett Prebon Group
Turkiye IS Bankasi AS
Turkiye Vakiflar
Vimpelcom (VIP FIN)
VN JSC Bank for Industries and Trade
Zoomlion Hk SPV Co Ltd
At Maturity
At Maturity
Callable
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
At Maturity
Bi-annually
Bi-annually
Bi-annually
Annual
Bi-annually
Bi-annually
Bi-annually
Bi-annually
Bi-annually
6.950%
3.950%
7.000%
7.040%
5.500%
5.000%
7.748%
8.000%
6.875%

Government of Pakistan Sukuk - VII
At Maturity
Bi-annually

At Maturity
At Maturity
Bi-annually
Bi-annually
7.125%
6.875%
Monthly
Monthly
Nil
Monthly
K.S. Sulemanji - Diminishing Musharika

Sitara Energy Limited
Sitara Peroxide Limited
WAPDA Bonds - Sukuk II
WAPDA Bonds - Sukuk III
Quarterly
Bi-annually
Monthly
Bi-annually
At Maturity
At Maturity
Quarterly
Bi-annually
Monthly
Bi-annually
Bi-annually
Bi-annually
Nil
Deferred interest instalment
@ 1 month KIBOR
Avg. of 3 months KIBOR plus 140 bps
6 Month KIBOR plus 1.15%
1 Months KIBOR plus 1%
6 month KIBOR plus 1.75%
6M KIBOR minus 25bps
6M KIBOR plus 100bps

Tanzania - 2020
At Maturity
Bi-annually
6.450%
516,220
301,353
779,459
361,892
345,262
327,934
551,890
834,759
473,656
32,479,255
Sukuks
Security Leasing Corporation
B.R.R Guardian Modaraba
300,000
300,000
1,147,686
4,956,293
6,103,979
23,261
80,937
54,447
31,704
234,759
890,000
34,089
425,000
1,774,197
155,121
241

Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)

JSC Alliance Bank - US $ Discount Bonds
Zurich Insurance - 2016
State Bank of India - 2016
Notes Sunrise Comm. - 2017
Bank of Ceylon - 2018
At maturity
At maturity
At maturity
At maturity
At maturity
Bi-annually
Annual
Annual
Bi-annually
Bi-annually
10.500%
4.250%
3.375%
7.000%
5.325%
228,454
119,639
237,420
123,190
206,668
915,371
Recovery Note
JSC Alliance Bank - US $ Recovery Notes
At Maturity
Not applicable
Not applicable
324,639
4) Particulars of Debentures
Investee
Terms of Redemption
Principal
Interest / Profit
Outstanding
Amount
(Rupees in 000)
Private Sector
Khyber Textile Mills Limited
242
Annual Report 2013
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
Overdue
11.00%
14.00%
14.00%
11.00%
14.00%
1,017
379
395
315
160
2,266

5) Particulars of investments in term finance certificates
Investee
No. of
Outstanding
value
Amount
(Rupees) ---------(Rupees in 000)-------------
Unlisted - held for trading

Worldcall Telecom Limited
Engro Fertilizer Limited
4,855
5,000
2,000
2,142
5,000
5,000
10,399
25,000
10,000
7,032
22,417
10,110
39,559
Babar Ali Syed

Rohail Mohammad
Mohsin Ali Nathani
Listed - held for trading

2,000
4,999
9,998
10,223
Atif Bajwa
12,944
46,000
140,000
46,000
1,700
5,000
5,000
5,000
5,000
5,000
64,720
230,000
700,000
230,000
8,500
64,720
229,172
700,000
229,724
8,498
1,232,114
1
53,000
19,523
24,200
44,766
22,562
2,493
5,000
5,000
5,000
5,000
5,000
2
265,000
97,615
121,000
223,830
112,810
3
133,200
97,615
120,976
224,680
112,782
689,256
408,867
1,500
40,000
14
14
17
16
40
1
20,000
24,000
300,000
5,000
100,000
5,000
774,670
268,894
497,020
1,064,039
287,715
8,770,219
5,000
5,000
5,000
2,044,335
150,000
200,000
10,845
3,765
8,449
17,025
11,509
8,770
100,000
120,000
1,500,000
2,042,700
45,000
32,839
5,418
18,516
3,417
3,392
2,549
6,113
1,853
95,000
119,856
1,500,000
3,876,653
Unlisted - available for sale

Azgard Nine Limited
Faysal Bank Limited
Listed - available for sale

Allied Bank Limited TFC
Azgard Nine Limited
Bank Al Falah Limited TFC III
Unlisted - held to maturity

Orix Leasing Pakistan Limited
Security Leasing Corporation Limited
Al-Azhar Textile Mills Limited
Bachani Sugar Mills Limited
Bentonite (Pakistan) Limited
Blue Star Spinning Mills Limited
Cast-N-Link Products Limited
Regency Textile Limited
Tharparkar Sugar Mills
Independent Media Corporation
Faysal Bank Limited
WAPDA
Ahmed H. Shaikh
Abbas D. Habib
Muhammad Rohail
Naved A. Khan
Tariq Mahmood
Tariq Mahmood
Ahmed H. Shaikh
Atif Bajwa
Abbas D. Habib
Muhammad Rohail

Teizoon Kisat
Mohammed Khalid Ali
Mirza Aurangzeb Baig
Noorul Amin Bachani
Khalid Shakeel
Ch. Ijaz Safdar
Nisar Ahmed
M. Iqtidar Pervaiz
Sajid H. Naqvi
Mir Ibrahim Rahman
Naved A. Khan
Syed Raghib Abbas
243

5) Particulars of investments in term finance certificates (Contd.)
Investee
No. of
Outstanding
value
Amount
(Rupees) ---------(Rupees in 000)-------------
Listed - held to maturity

Azgard Nine
129,397
12,297
48,600
75,000
5,000
5,000
5,000
5,000
646,985
61,485
243,000
375,000
490,082
61,115
242,951
375,000
1,169,148
Tariq Mahmood
Ahmed H. Shaikh
Atif Bajwa
Mohsin Ali Nathani
6) Particulars of participation term certificates

Investee
No. of
Outstanding
value
Amount
(Rupees) ---------(Rupees in 000)-------------
Brother Steel Industries Limited

Zamrock Fibers Glass Limited
244
Annual Report 2013
17
16
12
362,000
29,250
32,833
6,154,000
468,000
394,000
2,144
437
2,358
4,939
Mian Yousuf Aziz

Air Marshal (Retd.) A. Rahim Khan
S. Zamir Syed

7)
Investee
Investment in ordinary shares
Agritech Limited
Aisha Steel Mills
Engro Foods Limited
MCB Bank Limited
DP World
PICIC Growth Fund

Silk Bank Limited
JSC Alliance Bank
Investee
Market Value
(Rupees in 000)
Credit Rating
178,484
47,927
567,840
365,540
673,115
639,744
1,988,974
1,959,300
2,017,635
5,143,806
276,137
503,875
43,104
932,052
288,722
139,552
638,478
134,253
12,918
15
16,551,471
D
Not available
AANot available
A
A+
Not available
Not available
AA+
AA+
AAA
BB
AA+
A+
Not available
AA
Not available
Not available
Baa3
Not available
73,333
25,000
338,312
436,645
Not available
ACaa2
Cost
(Rupees in 000)
Credit Rating
5,500
50,372
77,606
Not available
Not available
Not available
21,100
1,527
26,950
3,778
50,702
2,905
100
325
0
2,235
250
243,350
ANot available
BBB
Not available
Not available
Not available
AM2Not available
Not available
Not available
Not available
Investment in unlisted shares

Pakistan Agricultural Storage & Services Corporation Limited
Cinepax Limited
National Institutional Facilitation Technologies (Pvt.) Limited
SME Bank Limited
SWIFT
News-VIS Credit Information Services (Pvt.) Limited
Tri Star Shipping Company
245

7)
Quality of investments classified as available for sale (AFS) - (Contd.)
Investee
Market Value
(Rupees in 000)

Government of Pakistan Islamic Bonds
Government of Pakistan Ijarah Sukuk
Government of Pakistan - Euro bond
Angol 2019 USD
EGYPT 2020
Kingdom of Jordan
State of Qatar 2030
Venezuela 2016
Central Bank of Tunisia
Republic of Egypt
Trade and Development Bank of Mongolia
Republic of Srilanka
Republic of Ghana
Republic of Zambia
UK Government

Bank of Ceylon 2017
CBQ Finance 2019
Dar Al Arkaan 2015
DEWA 2016
DEWA 2018
EMAAR 2019
EMIRAT
IPIC GMTN 2022
JAFZA 2019
246
Annual Report 2013
187,998,952
64,734,891
252,733,843
Credit Rating

6,238,358
6,238,358
Score7
3,896,459
9,651,571
13,548,030
Score7
Score7
422,045
681,200
2,589,191
472,449
1,582,108
1,110,714
752,139
294,102
754,266
580,910
2,710,059
1,144,426
287,326
139,130
353,972
480,748
783,059
690,253
605,283
9,721,663
26,155,044
Score5
Score6
Score2
Score2
Score2
Score4
Score5
Score5
Score6
Score6
Score3
Score6
Score7
BBB
B
BBB+
B+
AA+
501,553
219,397
520,960
397,655
11,713
3,367,780
1,071,084
628,918
202,646
1,065,537
Not available
BBB
A1
Not available
Baa3
Baa3
B1
BBB
Aa3
B+

7)
Investee
MAF Global 2019

DEWA 2020
Access Finance BV
Sistema JSFC
African Bank Ltd
AK Financial Kiralama AS
Alfa Bank
Azerbaijan Railways
Bahrain Telecom
Banco Daycoval SA
Banco Industrial and Commercial
Industrial Senior Trust
Bank of Ceylon
Bank of Georgia JSC
Bank of India London
Ottawa Holding Pte Ltd
Bharti Airtel International
BTG Investments LP
Canara Bank London
China Railway Resources
Credit Bank Moscow
Dar Al Arkan
Eastern and Southern African
Georgian Oil and Gas Corporation
JSC Georgian Railways
GTB Finance BV
Halyk Savings Bank - Kazakistan
Halyk Savings Bank - Kazakistan
ICICI Bank Ltd
IDBI Bank Limited
Indian Overseas Bank
Investcorp SA
Turkiye IS Bankasi AS
Theta Capital Pte Ltd
Mongolia International Bond
National Savings Bank
AE Rotor Holding BV
Russain Standard Bank
Saudi Electricity Global (SECO)
Oschad Bank
Mongolian Mining Corporation
Tullett Prebon Group
TF Varlik Kiralama AS
Turkiye Vakiflar
VN JSC Bank for Industries and Trade
Vimpelcom (VIP FIN)
Zoomlion China
Market Value
(Rupees in 000)
Credit Rating
524,217
2,885,750
288,754
871,853
521,828
886,091
224,378
114,171
136,556
592,262
392,444
427,583
483,462
966,715
808,438
245,090
471,712
24,723
649,721
272,814
19,700
671,586
473,079
753,399
249,302
136,380
689,845
587,215
115,639
556,996
207,339
201,523
570,848
347,782
742,658
266,632
344,691
628,697
739,179
322,460
350,092
484,353
381,142
302,167
326,869
838,142
529,160
465,279
Not available
Baa3
Aa2
B
BBBBBBBB
BBBBB+
BBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBB+
BBB+
BBBBBBB+
BBBBBBBBBBBBBBB
BBB
BBB+
BBBBB
B+
AAB
B+
BBB
BBB
BBBB
BB
BBB-
32,077,959
247

7)
Investee
Market Value
(Rupees in 000)
Credit Rating

Listed
Allied Bank Limited
Azgard Nine Limited
Bank Al Falah Limited TFC
Unlisted
Azgard Nine Limited
Faysal Bank Limited
248
Annual Report 2013
2
132,792
97,615
123,607
224,405
112,579
691,000
64,720
240,631
700,000
240,595
8,498
1,254,444
AA
AA
D
AAAA
A-
D
AA
AAA
Not available
Annexure C As Referred to in Note 11.7 of the Groups

Disposals of operating fixed assets during the year 2013
Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------
Mode of
disposal

Items having book value of less than Rs. 250,000
or cost of less than Rs. 1,000,000
3,011
2,766
245
181
Auction
Various
Electrical, office and

computer equipment
45,841
44,497
1,344
3,773
Different
Various
Vehicles
Items having book value of more than Rs. 250,000
and cost of more than Rs. 1,000,000
Toyota Corolla
1,565
516
1,049
1,200
Insurance Claim
1,526
5,420
4,588
4,196
4,295
80
596
636
636
560
560
390
620
560
560
879
879
864
849
879
285
825
819
59
11
344
33,481
1,373
5,420
4,588
4,196
4,295
72
536
573
573
504
504
351
558
504
504
791
791
778
764
791
257
742
737
53
10
237
31,018
153
0
0
0
8
60
63
63
56
56
39
62
56
56
88
88
86
85
88
28
83
82
6
1
107
2,463
305
2,581
1,004
1,145
868
92
939
632
569
481
444
451
516
425
422
851
839
758
842
850
282
630
953
17
6
2
18,104
Buy Back
Auction
Negotiation
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction
Auction

Honda Civic
Toyota Landcruiser
Lexus
Chrysler
Chrysler
Transport Van
Transport Van
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Suzuki Cultus
Toyota Corolla
Toyota Corolla
Toyota Corolla
Toyota Corolla
Toyota Corolla
Pajero
Toyota Landcruiser
Toyota Hilux
Cycles / Bicycles
Cycles / Bicycles
Various
Saeed Iqbal
Saud Mohammad Shinain Arjawawani
Rahoof A. F. Moosa
Behbehani Brothers W.L.L.
Masood Ahmed
Muhammad Ayub
Span Gul
Sheikh Abdul Waheed
Khalil ur Rehman
Aijaz Ahmed
Aijaz Ahmed
Syed Ariz Ali
Aijaz Ahmed
Naveed Rauf
Sheikh Abdul Waheed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Syed Riaz Ahmed
Naveed Rauf
Syed Riaz Ahmed
Muhammad Javed
Danish Alvi
Qazi Irfanullah
Various
249

Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------
Mode of
disposal
Ijarah Assets
Items having book value of more than Rs. 250,000
or cost of more than Rs. 1,000,000
Commercial Ijarah
- Ghani Glass Limited
Commercial Ijarah
- M/s Atlas Honda Limited
Commercial Ijarah
- Mecas Engineering (Pvt) Limited
Commercial Ijarah - Tanveer Cotton Mills
Commercial Ijarah - Hotel Defense
Commercial Ijarah - Royal Tech
Commercial Ijarah - Mecas Foundry
Commercial Ijarah - National Foods Limited
Honda City
Honda City Aspire MT
Toyota Corolla GLi
Toyota Corolla GLi
Honda City
Honda City
Honda City
Toyota Corolla XLi
Suzuki Swift
Toyota Vitz
Honda City
Toyota Corolla GLi
Toyota Corolla GLi
Toyota Corolla GLi
Toyota Corolla GLi
Toyota Corolla XLi
Toyota Corolla XLi
Items having book value of less than Rs. 250,000 or

cost of less than Rs. 1,000,000
Commercial Ijarah - Premiere Dairies
Honda City
Toyota Corolla GLi
Toyota Corolla XLi
Toyota Corolla XLi
Honda Civic VTi Oriel
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Suzuki Liana
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
Toyota Corolla XLi
250
Annual Report 2013
170,000
79,333
90,667
94,778
Buy Back
Ghani Glass Limited
15,711
14,907
804
804
Buy Back
M/s Atlas Honda Limited
15,457
12,213
12,095
10,552
6,874
4,360
1,710
1,701
1,625
1,623
1,464
1,439
1,430
1,323
1,168
1,131
1,126
1,111
1,064
1,035
1,035
1,034
1,032
1,030
1,012
13,911
10,992
9,676
9,497
6,186
2,175
182
321
537
536
626
754
639
985
726
339
625
859
765
636
554
782
219
743
721
1,546
1,221
2,419
1,055
688
2,185
1,528
1,380
1,088
1,087
838
685
791
338
442
792
501
252
299
399
481
252
813
287
291
1,546
1,221
2,419
1,055
687
2,505
2,095
1,482
1,088
1,088
838
686
740
355
442
1,094
576
265
309
947
151
251
836
299
381
Buy Back
Buy Back
Buy Back
Buy Back
Buy Back
Buy Back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Mecas Engineering (Pvt) Limited

Tanveer Cotton Mills
Hotel Defense
Royal Tech
Mecas Foundry
National Foods Limited
Muhammad Mustafa
Imran Khan
Wajid Sarwar
Wajid Sarwar
Mukhtar Khan
Muhammad Asif
Khurram Farooq
Qaiser Hafeez
Syed Asad Imam
Faisal Ijaz
Ghulam Abbas
Naveed Iqbal Khan
Khurram Farooq
Asim Rehman Khan
Adnan Ismail
Mohammad Ahmed
Muhammad Ashraf
Muhammad Rafi Khan
Muhammad Iqbal
2,200
1,044
1,043
1,012
982
969
960
959
956
954
948
945
945
944
943
1,980
907
814
778
849
725
784
401
771
815
689
762
716
769
806
220
137
229
234
133
244
176
558
185
139
259
183
229
175
137
220
149
273
445
143
257
186
572
185
139
259
183
229
185
137
Buy Back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Premiere Dairies
Muhammad Javed Shamsi
Muhammad Nadeem
Asadullah
Mohammad Irfan
Yasir Amir
Syed Akleem Imtiaz
Mohammad Raza Ahmed
Mohammad Tariq Dara
Mohammad Kousar Khan
Bina Khan
Naeem Ahmed Rana
Manzoor Uddin
Nasir Ghulam
Muhammad Kausar

Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------
Toyota Corolla XLi

Suzuki Liana
Honda City
Toyota Corolla XLi
Honda Civic Exi
Honda Civic Exi
Suzuki Cultus Vxl CNG
Suzuki Bolan CNG
Honda City
Nissan Lancer
Hyundai Santro
Suzuki Alto VXR CNG
Shehzore Pickup
Shehzore Pickup
Suzuki Bolan CNG
Shehzore Pickup
Shehzore Pickup
Shehzore Pickup
Honda City
Shehzore Pickup
Honda City
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
942
939
931
907
902
869
868
860
858
852
852
849
847
819
772
769
739
738
731
731
729
726
720
716
716
716
716
714
709
708
708
708
704
703
703
695
694
689
683
678
677
676
673
673
672
668
660
657
657
657
657
657
247
815
753
467
648
712
443
693
658
687
682
683
642
508
549
623
535
597
600
552
554
514
512
581
58
424
581
208
616
363
615
571
578
288
572
602
561
555
538
352
359
579
576
575
575
479
566
456
562
562
467
467
695
124
178
440
254
157
425
167
200
165
170
166
205
311
223
146
204
141
131
179
175
212
208
135
658
292
135
506
93
345
93
137
126
415
131
93
133
134
145
326
318
97
97
98
97
189
94
201
95
95
190
190
711
124
178
439
297
170
425
167
200
165
169
166
205
320
223
146
214
141
141
176
175
210
208
135
676
304
135
196
106
355
102
137
135
523
134
100
134
134
151
329
334
97
97
97
97
331
94
202
95
95
190
190
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Insurance claim
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Muzafar Aleem Siddiqui

Najam Uddin Quershi
Ahmed Bilal
Javed Arshad Siddiqui
Kashif Ali
Danish Mansoor Khan
Ajaz Ahmed
Muhammad Munawar
Muhammad Amir Ali
S. Muhammad Ishtiaq
Muhammad Tariq Khan
Shakeel Essa Jaffer
Muhammad Asif
Muhammad Nadeem
Nand Lal
Talat Mehmood
Muhammad Kaleem
Aneel Mazhar
Mohammad Taj Uddin
Muhmmad Ashraf
Asfiya Aziz
Qayyum Khan
Aijaz Ali Sial
Basheer Ali
Nisar Ahmed
Nisar Akber
Mohammad Ali
Muhammad Javed Sagher
Ghulam Farooq
Zeeshan Ahmed
Mohammad Shareef
Pak Qatar General Takaful Company Limited
Usman
Azeem Ahmed
Abdul Majid Shaikh
Wajahat Ali Khan
Syed Nasrullah Shah
Rabia Abeer Fatima
Kalash Kumar
Syed Fahad Razi
Muhammad Munir
Manzoor Ahmed Sheikh
Muhammad Zubair Rasheed
Syed Mojiz Ali
Nadeem Ali
Muhammad Javed
Kamran Ali
Shazada Ghulam Mustafa
Shaukat Ali
Muhammad Nafees Qureshi
251

Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------

Suzuki Alto VXR CNG
Daihatsu Cuore Ecometic
Suzuki Mehran VXR
Toyota Vitz
Suzuki Cultus VXR
Suzuki Bolan
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Daihatsu Cuore Cx At
Suzuki Alto VXR CNG
252
Annual Report 2013
656
656
656
654
654
652
649
647
641
626
623
619
617
617
616
616
615
613
603
585
584
575
574
573
566
563
561
557
557
557
556
555
554
554
553
553
553
551
551
550
549
547
546
545
545
545
545
544
544
543
542
538
538
246
560
438
528
65
460
488
204
488
417
367
441
499
537
464
536
534
314
471
482
372
419
436
431
267
480
476
397
477
343
406
475
400
474
474
473
419
446
450
470
390
467
389
414
466
466
476
389
440
387
322
118
410
96
216
126
587
189
159
437
138
206
252
176
118
79
152
79
79
289
114
102
203
155
137
135
296
81
81
160
80
213
149
79
154
79
79
80
132
105
100
79
157
79
156
131
79
79
68
155
103
155
216
126
410
126
216
125
605
189
195
486
148
207
252
215
118
89
173
89
88
289
112
112
203
165
173
136
267
81
81
160
80
213
159
79
153
79
79
79
132
105
100
92
157
78
156
130
78
78
78
156
104
156
234
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Faraz Ahmed
Taimur Haris
Wali Ullah Khan
Syed Asad Imam
Syed Hur Ali
Sharjeel Anjum
Muhammad Shafi
Muhammad Mithal
Allah Bux Zunr
Muhammad Nasir
Mafhh International
Muhammad Yousuf Khanani
Farhan Ilyas
Noor Muhammad Shahid
Samiullah Khan
Muhammad Imran
Samina Ahmed
Syed Kashif Mahmood
Syed Ali Murad Shah
Imran Ali
Kanwal Rehman
Safdar Hussain
Talal Durrani
Jawad Nasir
Dilawar Khan
Abdul Jabbar
Muhammad Iqbal Mansoori
Mohammad Nafees
Uzma Asif
Humaira Fareed
Zaheer Amjad
Aftab Ahmed Bughio
Jerome Benjamin
Muhammad Adnan Bashir
Mohammad Saleem Malik
Faisal Majeed Bhatti
Syed Ameer Ali Shah
Imran Afzal
Salman Baig
Nighat Taufiq
Qaiser Yousuf
Haris Ahmed
Wajjid Pervaiz
Javeria Siddique
Muhammad Arif
Syed Raza Hussain Moosavee
Imran Haider
Ghulam Dastagir Paracha
Seema Zaki
Ghazala Abdul Aziz
Mohammad Tanvir Sheikh
Sheikh Zakaria Ahmed

Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------
Suzuki Alto VXR CNG

Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Cultus VXR
Suzuki Alto VXR CNG
Daihatsu Cuore Cx
Suzuki Bolan CNG
Suzuki Alto VXR CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Baleno
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Ravi CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Bolan CNG
Suzuki Alto
Suzuki Ravi CNG
Suzuki Bolan CNG
538
538
538
537
537
537
537
537
536
533
532
531
531
530
528
524
522
520
519
518
516
508
507
501
501
485
483
483
483
483
483
482
482
481
478
477
477
473
473
472
469
468
467
467
463
457
457
457
450
442
442
442
461
461
435
337
420
460
460
409
433
353
369
273
430
454
343
399
447
321
445
446
418
266
434
430
429
347
251
374
300
378
424
421
367
263
365
386
252
349
361
414
400
380
400
400
312
371
339
242
365
379
296
377
77
77
103
200
117
77
77
128
103
180
163
258
101
76
185
125
75
199
74
72
98
242
73
71
72
138
232
109
183
105
59
61
115
218
113
91
225
124
112
58
69
88
67
67
151
86
118
215
85
63
146
65
85
77
103
200
129
78
90
128
103
180
374
262
101
76
255
125
75
199
75
73
98
242
73
71
71
138
233
141
183
115
69
73
115
224
117
91
224
135
112
67
67
89
67
67
151
87
109
215
85
77
147
63
Mode of
disposal
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Muhammad Usman
Waseem Anwer
Ather Masood Rana
Muhammad Khalid Shakir
Azam Khan
Faraz Ahmed
Adnan Akhter
Muhammad Hamid
Syed Farhan Ali
Suhail Anjum Jaffari
Sohail Athar
Zeeshan Ahmed Khan
Sharjeel Mehmood
Syed Ali Hasan Rizvi
Asad Hafeez
Aijaz Ali Sheikh
Sajjad Haider
Mohammad Yasir
Omer Nadeem Ansari
Aijaz Ali Shaikh
Abdul Wahab
Muhammad Khalid Abbasi
Ghulam Hussain Najmi
Mohammad Iqbal
Ilyas
Jahan Sher Khan
Mazhar Ali Siddiqui
Mukhtar Khan
Qurban Ali
Ishmat Khan
Ghulam Mustafa Qureshi
Rizwana Jabeen
Mohammad Tanveer
Nasreen Fahmi
Jibran Farooq Awan
Syed Farid Uddin
Muhammad Iqbal Farooq
Muhammad Jahangir
Muhammad Fazil
Gul Samar
Shakir Ali
Khawer Hashmat Khan
Muhammad Irfan
Haider Abbas
Farzana Amin
Mohammad Iqbal Abro
Khalil Ahmed Mangi
Muhammad Taqi
Imran Khan
Syed Salman Zafar
Syed Kousar Ali Hamza
Huzoor Ali
253

Cost
Accumulated
Book value
Sale
depreciation
proceeds
--------------------------(Rupees in 000)------------------------

Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Ravi CNG
Suzuki Alto VXR CNG
Suzuki Alto VXR CNG
Suzuki Ravi CNG
Intangible assets
Total
254
Annual Report 2013
Mode of
disposal
Haji Sabir Hussain Bhatti

Tufail Ahmed
Mehmood
Syed Ghufran Ul Haq
Farrukh Aziz
Mohammad Hanif
Mohammad Akram
Humera Naz
Mushtaque Hussain
Aziz Ahmed Soomoro
Syed Irfan Ali
Arshad Sohail
Mehwish Lace Works
Abdul Razzak
Abdul Rasheed
Gul Sharif
Muhammad Shahid Siddiqui
Manzoor Hussain
Riaz Mehmood
Muhammad Akram
Ghulam Mustafa
Abdul Kalim
Akhtar Ali
Atif Ali
Ijaz Ahmed Gondal
Mohsin Jhangir
Mohammad Ramzan
Mehboob Ali Solangi
Noor Muhammad Khan
Sohail Kamal
Ali Muhammad
Uzma Amir Ali
440
435
432
430
426
424
424
422
420
405
402
400
400
398
398
396
395
395
394
393
393
387
385
383
383
380
378
374
373
372
370
318
394,956
357
274
371
275
365
334
365
345
354
252
221
334
326
313
331
340
339
321
227
319
281
306
258
224
224
273
306
232
273
266
300
264
250,235
83
161
61
155
61
90
59
77
66
153
181
66
74
85
67
56
56
74
167
74
112
81
127
159
159
107
72
142
100
106
70
54
144,720
84
161
62
109
60
100
60
79
60
153
170
74
74
93
74
56
56
74
167
74
112
90
127
159
159
180
71
142
100
115
69
151
151,885
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Buy back
Write-off
477,297
328,524
148,772
173,943

2013
2012
2011
-------------------------- (US Dollars in 000) -----------------------Restated
Restated
ASSETS
Investments
Advances
Performing
Other assets
LIABILITIES
Bills payable
Borrowings
Subordinated loans
Other liabilities
NET ASSETS
REPRESENTED BY:
Share capital
Reserves
850,624
310,076
283,486
4,356,496
900,519
208,571
216,747
3,619,723
819,458
157,416
117,496
2,858,847
3,844,746
98,144
3,942,890
266,205
278,729
10,288,506
3,522,460
140,828
3,663,288
260,726
267,383
9,136,957
3,132,882
106,052
3,238,934
244,437
12,395
225,890
7,674,873
157,615
390,011
8,445,564
6,317
13
13,246
219,262
9,232,028
1,056,478
72,304
661,703
7,147,294
88,481
20
8,132
191,275
8,169,209
967,748
55,818
474,302
6,027,050
107,450
182,384
6,847,004
827,869
116,229
361,258
429,228
906,715
33,116
939,831
116,647
1,056,478
116,229
306,659
373,181
796,069
26,841
822,910
144,838
967,748
116,229
261,059
336,882
714,170
22,069
736,239
91,630
827,869
These have been converted at Rs. 105.3246 per US dollar from the audited financial statements.
255
Consolidated Profit and Loss Account

2013
2012
------------(US Dollars in 000)------------Restated
718,818
343,698
375,120
715,691
339,513
376,178

12,781
575
56
1,725
15,137
359,983
31,890
1,600
3,803
3,030
40,323
335,855
108,651
15,304
20,999
28,731
89,771
5,124
18,478
11,958
(42)
10,704
184,347
544,330
(5)
37,913
163,239
499,094
271,262
3,091
4,777
2,368
281,498
12,176
275,008
242,663
4,646
5,087
617
253,013
22,764
268,845
78,826
588
8,262
87,676
187,332
86,038
4,652
(4,588)
86,102
182,743
183,105
4,227
187,332
181,895
848
182,743

Non mark-up / interest income
Dividend income
Unrealized loss on revaluation of investments
classified as held for trading
Other income
Non mark-up / interest expenses
Other charges
Taxation - Current
- Prior
- Deferred
Attributable to:

These have been converted at Rs. 105.3246 per US dollar from the audited financial statements.
256
Annual Report 2013
------------------ (US $) --------------------Restated

0.15
0.15
Category of Shareholders
As on December 31, 2013
Particulrs
DIRECTORS, CEO & CHILDREN
NIT & ICP
BANKS, DFI & NBFI
INSURANCE COMPANIES
MODARABAS & MUTUAL FUNDS
GENERAL PUBLIC (LOCAL)
GENERAL PUBLIC (FOREIGN)
OTHERS
GOVERNMENT OF PAKISTAN
FOREIGN COMPANIES
GOVT. OWNED ENTITIES / BANKS
JOINT STOCK COMPANIES
PUBLIC SECTOR COMPANIES
CHARITABLE TRUSTS
Company Total
No of Folio
Balance Share
Percentage
6
1
20
14
38
22276
1087
64
1
71
4
95
6
7
23690
65,714,287
492,199
14,880,552
8,789,389
19,247,108
25,356,178
2,372,554
45,132,923
3,354,550
698,131,394
238,569,096
7,636,709
93,997,760
504,988
1,224,179,687
5.368
0.040
1.216
0.718
1.572
2.071
0.194
3.687
0.274
57.029
19.488
0.624
7.678
0.041
100.000
257
NO. OF
SHAREHOLDERS
3998
15963
1292
1638
283
101
61
48
32
19
26
11
15
11
9
6
4
4
2
3
2
7
7
2
4
6
6
2
1
1
1
2
2
5
1
1
2
2
2
2
2
2
2
2
1
2
1
258
Annual Report 2013
<---- HAVING SHARES ---->

From
To
1
101
501
1001
5001
10001
15001
20001
25001
30001
35001
40001
45001
50001
55001
60001
65001
70001
75001
80001
85001
90001
95001
100001
105001
115001
120001
125001
130001
135001
140001
145001
150001
155001
160001
165001
170001
175001
185001
195001
200001
205001
210001
215001
220001
225001
230001
100
500
1000
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
90000
95000
100000
105000
110000
120000
125000
130000
135000
140000
145000
150000
155000
160000
165000
170000
175000
180000
190000
200000
205000
210000
215000
220000
225000
230000
235000
SHARES HELD
255632
7005681
1053515
3670940
2043134
1268057
1082544
1097401
893817
617044
991456
469282
719053
585868
520713
368924
277776
288208
153885
250500
178296
640624
698914
205378
429744
711298
732171
257106
131000
140000
141622
296000
306958
781862
165000
169000
345430
357100
378330
400000
402652
416200
428400
437647
222147
455990
230699
PERCENTAGE
0.021
0.572
0.086
0.300
0.167
0.104
0.088
0.090
0.073
0.050
0.081
0.038
0.059
0.048
0.043
0.030
0.023
0.024
0.013
0.021
0.015
0.052
0.057
0.017
0.035
0.058
0.060
0.021
0.011
0.011
0.012
0.024
0.025
0.064
0.014
0.014
0.028
0.029
0.031
0.033
0.033
0.034
0.035
0.036
0.018
0.037
0.019
NO. OF
SHAREHOLDERS
1
2
1
1
1
2
1
1
1
1
2
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
2
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
1

From
To
235001
245001
250001
255001
260001
265001
280001
285001
290001
295001
305001
310001
315001
330001
340001
345001
365001
370001
375001
395001
400001
415001
420001
430001
490001
495001
515001
545001
555001
570001
580001
615001
640001
645001
650001
680001
705001
715001
725001
745001
755001
775001
805001
835001
885001
920001
995001
240000
250000
255000
260000
265000
270000
285000
290000
295000
300000
310000
315000
320000
335000
345000
350000
370000
375000
380000
400000
405000
420000
425000
435000
495000
500000
520000
550000
560000
575000
585000
620000
645000
650000
655000
685000
710000
720000
730000
750000
760000
780000
810000
840000
890000
925000
1000000
SHARES HELD
237960
496947
253000
259400
260900
535100
284000
289242
294700
300000
615713
310871
317783
332280
342200
345743
368218
375000
379700
800000
401315
418962
423596
435000
492199
500000
519863
547000
555700
1146773
583123
616000
643958
1296199
654000
683892
707850
718600
727852
745745
757448
777930
807500
836030
888200
921900
999096
PERCENTAGE
0.019
0.041
0.021
0.021
0.021
0.044
0.023
0.024
0.024
0.025
0.050
0.025
0.026
0.027
0.028
0.028
0.030
0.031
0.031
0.065
0.033
0.034
0.035
0.036
0.040
0.041
0.043
0.045
0.045
0.094
0.048
0.050
0.053
0.106
0.053
0.056
0.058
0.059
0.060
0.061
0.062
0.064
0.066
0.068
0.073
0.075
0.082
259
NO. OF
SHAREHOLDERS
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
23690
260
Annual Report 2013

From
To
1000001
1040001
1070001
1090001
1195001
1205001
1215001
1285001
1360001
1385001
1480001
1495001
1500001
1575001
1585001
1805001
2000001
2200001
2590001
2855001
3325001
3350001
3475001
3535001
4330001
4540001
4565001
4595001
4950001
5165001
5490001
7920001
9340001
38650001
39550001
61205001
62430001
93645001
128235001
177355001
467610001
1005000
1045000
1075000
1095000
1200000
1210000
1220000
1290000
1365000
1390000
1485000
1500000
1505000
1580000
1590000
1810000
2005000
2205000
2595000
2860000
3330000
3355000
3480000
3540000
4335000
4545000
4570000
4600000
4955000
5170000
5495000
7925000
9345000
38655000
39555000
61210000
62435000
93650000
128240000
177360000
467615000
Company Total
SHARES HELD
1000067
1043225
1072245
1094748
1200000
1207878
1218798
1287335
1361763
1385600
1480388
1497234
1504500
1578279
1587400
1806340
2000158
2200233
2591500
2858544
3329953
3354550
3478300
3537288
4330544
4544340
4568900
4600000
4954172
5166939
5490300
7923600
9344300
38651126
39550835
61208980
62433163
93649744
128239411
177358401
467611120
1224179687
PERCENTAGE
0.082
0.085
0.088
0.089
0.098
0.099
0.100
0.105
0.111
0.113
0.121
0.122
0.123
0.129
0.130
0.148
0.163
0.180
0.212
0.234
0.272
0.274
0.284
0.289
0.354
0.371
0.373
0.376
0.405
0.422
0.449
0.647
0.763
3.157
3.231
5.000
5.100
7.650
10.476
14.488
38.198
100.000
Shares Trading (Sale / Purchase)

during the year 2013
UBL CEO, COO, Head Internal Audit and Company Secretary
Name
Atif R. Bokhari
President & CEO
Aameer Karachiwalla
COO
Muhammad Ejazuddin
Head Internal Audit
Aqeel Ahmed Nasir
Company Secretary
No. of Shares
Sale / Purchase
150,000
Sale
96,000
Sale
158,000
Sale
119,000
Sale
UBL Executives
Name
Aadil Saleh
Aasim Wajid Jawad
Abdul Jabbar Memon
Abdul Saeed Siddiqui
Abdul Sattar Vaid
Ali Abbas Halai
Ashfaq Akber
Ashraf Ali Sadruddin
Asif Fatah Shaikh
Asif Hasan Siddiqui
Asif Sharif
Atif Rasheed
Dilshad Salman
Faisal Latif
Imran Kapadia
Jaudat Hussain
Mashkoor Ahmad Babar
Minhas Wirasat Ali
Muhammad Faisal Qazi
Muhammad Hanif Akhai
Naeem Suhail
Rizwan Hameed Chapra
Sabrina Ghani
Sahib Dino Shaikh
Shahbaz Alam
Shahid Mir
Shahnawaz Hadi
Shar Bano
Suleman Pervez
Syed Farrukh Zaeem
Syed Mazhar Arif
Tariq Ejaz
Zeeba Ansar
No. of Shares
8,392
5,063
12,969
19,000
7,327
26,100
12,000
8,000
12,500
6,218
18,785
44,187
16,000
5,134
4,000
7,500
4,000
12,000
18,500
363,000
33,627
7,000
40,000
3,688
3,700
30,000
11,666
15,800
24,000
73,500
6,700
6,317
80,000
Sale / Purchase
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
Sale
261
Notice is hereby given that the 55th Annual General Meeting (AGM)
of the Shareholders of United Bank Limited (the Bank) will be held
on Friday, 28 March 2014 at 09:30 a.m. at Islamabad Serena Hotel,
Islamabad to transact the following business:
RESOLVED that the remuneration paid to the non-executive

directors of UBL including the Chairman and the Deputy
Chairman during the year 2013 for attending the Board
meetings and / or Committees meetings as disclosed in the
Note 38 of the Audited Financial Statements of the Bank
for the year ended 31 December 2013 be and is hereby
confirmed and approved on post facto basis.
7.
To consider and, if thought fit, approve investment of PKR

30 million in the form of Seed-Capital in UBL Retirement
Savings Fund of UBL Fund Managers Limited, a wholly
owned subsidiary of the Bank, and in that connection to pass
the following resolution, as a special resolution, as required
by Section 208 of the Companies Ordinance, 1984 with or
without modification, addition or deletion:
Ordinary Business:
1.
To confirm the minutes of the Annual General Meeting held

on 29 March 2013.
2.
To receive, consider and, if thought fit, adopt the Annual Audited

Accounts (consolidated and unconsolidated), Statement of
Compliance with the Code of Corporate Governance 2012 of
the Bank for the year ended 31 December 2013 together with
the Directors Report and Auditors Report thereon.
3.
To consider and, if thought fit, approve as recommended

by the Board of Directors, final cash dividend at the rate of
Rs.4/- per share i.e. 40%, in addition to 60% interim dividend
already declared/paid for the year ended 31 December 2013.
4.
To consider and, if thought fit, appoint two external auditors

to hold office from this AGM till the conclusion of the next
AGM of the Bank and to fix their remuneration. One of the
members has proposed name of M/s. A. F. Ferguson &
Company, Chartered Accountants, in place of retiring Auditors
M/s. BDO Ebrahim & Company, Chartered Accountants who
have completed five years as external auditors of the Bank
(The Code of Corporate Governance 2012 requires that
listed companies in the financial sector shall change their
external auditors every five years), whereas the other retiring
auditors, M/s. KPMG Taseer Hadi & Company, Chartered
Accountants being eligible, have offered themselves for reappointment.
5.
To elect seven (07) Directors as fixed by the Board of

Directors of the Bank under Section 178(1) of the Companies
Ordinance, 1984 in accordance with the provisions of the
said Ordinance for a period of three years to commence from
28 March 2014. The total strength of the Board of Directors
of the Bank shall be nine (09) including one (01) director
nominated by the Government of Pakistan under Section 183
of the Companies Ordinance, 1984 and the President & CEO
of the Bank, being deemed director under section 200(2) of
the Companies Ordinance, 1984.
The retiring Directors Sir Mohammed Anwar Pervez, OBE,
HPk, Mr. Zameer Mohammed Choudrey, Mr. Amin Uddin,
Mr. Arshad Ahmed Mir, Mr. Haider Zameer Choudrey and
Mr. Zaheer Sajjad are eligible for re-election.
RESOLVED that the Bank be and is hereby authorized

invest up to PKR 30 million in the form of Seed Capital
UBL Retirement Savings Fund - Commodity sub-Fund
UBL Fund Managers Limited, a wholly owned subsidiary
the Bank.
8.
To consider and, if thought fit, approve proposal for injection

of Tier-1 Capital of United National Bank Limited (UBL UK),
a subsidiary of the Bank for an amount of up to 8.25 million
and in that connection to pass the following resolution,
as a special resolution, as required by Section 208 of the
Companies Ordinance, 1984 with or without modification,
addition or deletion:
RESOLVED that the proposal for injection of Tier 1 Capital
of United National Bank Limited (UBL UK), a subsidiary of the
Bank, for an amount of up to 8.25 million be and is hereby
approved subject to all applicable regulatory approvals.
9.
To consider and, if thought fit, approve the additional cost of

PKR 0.516 million to be paid to the External Auditors for the
year 2013 resulting from levy of 4% sales tax on services
provided by auditors and in that connection to pass the
following resolution, as an ordinary resolution, with or without
modification, addition or deletion:
RESOLVED that the additional amount of PKR 0.516 million
to be paid to the External Auditors resulting from levy of 4%
sales tax on services provided by auditors be and is hereby
approved.
10.
To transact any other business with the permission of the

Chairman.
By order of the Board
Special Business:
6.
To consider and, if thought fit, approve the amount of

remuneration paid to the non-executive Directors of the Bank
for attending the Board and/or Committees meetings held
during the year and in that connection to pass the following
resolution, as an ordinary resolution, with or without
modification, addition or deletion:
Aqeel Ahmed Nasir

Company Secretary &
Chief Legal Counsel
Karachi, 6 March 2014
262
Annual Report 2013
to
in
of
of
Notes:
1.
The Share Transfer Books of the Bank shall remain closed

from 20 March 2014 to 28 March 2014 (both days inclusive).
Transfers received at M/s. THK Associates (Pvt.) Limited,
2nd Floor, State Life Building No.3, Dr. Ziauddin Ahmed Road,
Karachi, the Registrar and Share Transfer Agent of the Bank,
by the close of the business on 19 March 2014 will be treated
in time for the purpose of the above entitlement.
2.
A member entitled to attend and vote at the above Annual

General Meeting is entitled to appoint another member as
a proxy to attend and vote for on his/her behalf, save that
a corporation being a member may appoint as its proxy
an officer of such corporation whether a member of the
company or not. The instrument appointing a proxy and the
power of attorney or other authority (if any) under which it is
signed or a notarized certified copy of the power or authority
shall be deposited at the office of M/s. THK Associates (Pvt.)
Limited, 2nd Floor, State Life Building No.3, Dr. Ziauddin
Ahmed Road, Karachi, the Registrar and Share Transfer
Agent of the Bank not later than 48 hours before the time of
holding the meeting, and must be duly stamped, signed and
witnessed.
3.
The CDC Account Holders and Sub-account Holders, whose

registration details are available in the Share Book Details
Report, shall be required to produce their respective original
Computerized National Identity Card (CNIC) or original
Passport at the time of attending the Annual General
Meeting to facilitate identification. Such Account Holders
and Sub-Account Holders should also bring / know their
respective participation I.D. No. and the CDC Account No.
in case of proxy, he/she must enclose an attested copy of
his/her CNIC or Passport. Representative(s) of corporate
member(s) should bring usual documents required for such
purpose.
4.
Members are requested to timely notify any change in their

addresses and provide copies of their CNIC /NTN (if not
provided earlier) to Banks Registrar / Share Transfer Agent
M/s. THK Associates (Pvt.) Limited, 2nd Floor, State Life
Building No. 3, Dr. Ziauddin Ahmed Road, Karachi.
5.
The election provisions will not apply to the Government

nominee Director who has been nominated on the Board
of Directors of UBL by the Government of Pakistan under
Section 183 of the Companies Ordinance, 1984.
6.
Any person who seeks to contest the election to the office of

a Director, whether he is a retiring director or otherwise, shall
file the following documents with the Company Secretary of
the Bank at 2nd Floor, State Life Building No.1, I.I.Chundrigar
Road, Karachi, not later than fourteen days before the date of
the AGM:
(i)
1984, (b) a Declaration under clause (ii) of the Code

of Corporate Governance 2012 of the Securities and
Exchange Commission of Pakistan to the effect that
he is not a director of more than seven (07) listed
companies, (c) a Declaration that he is not ineligible to
become director of UBL in terms of Section 187 of the
Companies Ordinance, 1984, (d) a Declaration that he
is not ineligible to become a director of UBL under any
circulars / directives of the State Bank of Pakistan.
(ii)
7.
A questionnaire duly completed, recent photograph,

copy of CNIC / Passport and an Affidavit to, interalia, meet the requirement of State Bank of Pakistans
Prudential Regulations G-1 and the Fit and Proper Test
for Appointment of Directors as contained in Annexure
VI-A and VI-B of the Prudential Regulations.
In terms of the criteria prescribed by the State Bank of

Pakistan, association of the following person as director is
undesirable and against public interest:
(a)
A person who is / has been associated with any illegal

activity, especially relating to banking business;
b)
A person who is in his individual capacity or a proprietary

concern of any partnership firm or any private limited
company or any unlisted public company or any listed
public company (of which he has been a proprietor,
partner, director or shareholder), has been in default of
payment of dues owed to any financial institution and /
or in default of payment of any taxes.
His intention to offer himself for the election of

directors in terms of Section 178(3) of the Companies
Ordinance, 1984 together with: (a) consent in Form
28 under Section 184 of the Companies Ordinance,
263
under Section 160(1)(b) of the Companies Ordinance, 1984

Item No.6: Remuneration of the Non-Executive Directors of the Bank
As required under SBP Prudential Regulation G-1, total amount of remuneration paid/payable to the non-executive directors
including the Chairman and the Deputy Chairman for attending the Board meetings and/or Committees meetings during the
year 2013 as disclosed in Note 38 of the Audited Financial Statement is submitted to the shareholders for approval on a post
facto basis.
Item No.7: Investment of PKR 30 million in Seed-Capital in UBL Retirement Saving Fund
UBL Fund Managers Limited (UBLFM), a wholly owned subsidiary of the Bank, plans to launch Commodity sub-Fund under
the UBL Retirement Savings Fund (URSF). The new sub-fund will primarily invest in Gold Futures, following the same passive
strategy as that of UBL Gold Fund. UBLFM has requested UBL to invest PKR 30 million in URSF Commodity sub-Fund as
Seed Capital Investment.
Name of associated company or associated
undertaking along with criteria based on which
the associated relationship is established
UBL Retirement Savings Fund Commodity sub-Fund

Managed by UBL Fund Managers Ltd
ii.
Purpose, benefits and period of investments
Purpose: Seed-Capital requirement of the commodity sub-Fund planned

for launch.
Benefit: It will allow UBL Fund Managers, a subsidiary of the Bank, to
launch the commodity sub-Fund, the second such fund in Pakistan. It will
also give the Bank an exposure to Gold asset class.
Period of investment: 3 years
iii.
Maximum amount of investment
The Seed Capital requirement is PkR 30mn.
iv.
Maximum price at which securities will be

acquired
The Seed-Capital units of Commodity sub-Fund will be acquired at price of

PkR 100 per unit in pre-IPO stage.
v.
Maximum number of securities to be acquired
Since the Seed-Capital of PkR 30mn is required, therefore the number of

units will be 300,000 units.
vi.
Number of securities and percentage thereof

held before and after the proposed investment
N /A, as the investment being sought is for Seed-Capital of a new sub-Fund

yet to be launched.
vii.
In case of investment in listed securities,

average of the preceding twelve weekly
average price of the security intended to be
acquired.

yet to be launched.
viii.
In case of investment in unlisted securities, fair

market value of such securities determined in
terms of regulation 6 (1)

yet to be launched.
ix.
Break-up value of securities intended to be

acquired on the bases of latest audited financial
statements

yet to be launched.
x.
Earning per share of the associated company or

associated undertaking for the last three years.
CY2011: PkR2.40/share
CY2012: PkR6.523 / share (diluted: PKR6.521)
CY2013: PkR4.878 / share (diluted: PKR4.853)
xi.
Source of fund from which securities will be

acquired
Seed Capital units of Commodity sub-Fund will be acquired using funds

allocated for such investment by the Bank.
i.
264
Annual Report 2013
Where the securities are intended to be

acquired using borrowed funds
xii.
a)
Justification for investment through

N /A.
borrowings and
b)
Detail of guarantees and assets pledged

for obtaining such funds
xiii.
Salient features of the agreement(s), if any,

entered into with its associated company or
associated undertaking with regards to the
proposed investment
Standard features of Seed-Capital investment apply. The main feature is

that the investment cannot be redeemed before 3 years.
xiv.
Direct or indirect interest of directors, sponsors,

majority shareholders and their relatives, if
any, in the associated company or associated
undertaking or the transaction under
consideration

yet to be launched.
xv.
Any other important details necessary for the

members to understand the transaction
The investment is a standard Seed-Capital investment in UBL Retirement

Savings Fund Commodity sub-Fund
In case of investment in securities of a project

of an associated company or associated
undertaking that has not commenced
operations, in addition to the information
referred to above, the following further
information required, namely
The investment being sought is for Seed-Capital of a new sub-Fund

expected to be launched in 2QCY2014.
xvi.
a)
Description of the project and its history

since conceptualization
b)
Starting and expected date of completion

of work
c)
Time by which such project shall become

commercially operational; and
d)
Expected time by which the project shall

start paying return on investment
Item No.8: Injection of Tier-1 Capital of United National Bank Limited (UBL UK) for an amount of up to 8.25 million
United National Bank Limited (UBL UK) is a banking company incorporated in the United Kingdom and is regulated by the
Prudential Regulation Authority, UK (PRA) and the Financial Conduct Authority, UK (FCA) and is subject to the PRAs Minimum
Capital Requirements (MCR). PRA requires all banks and bank subsidiaries to be self-sufficient in terms of liquidity and capital
requirements and expects that all banks keep a level of capital buffer (CPB) over and above the designated minimum limits to
provide a cushion against adversely changing economic conditions.
265

The PRA expects that UBL UKs parent banks (UBL and National Bank of Pakistan) will ensure that required capital is injected
into the subsidiary company as a demonstration of commitment and support of the shareholders towards UBL UK. The PRA is
not satisfied with current capital levels and has indicated that it considers the Bank to be thinly-capitalized.
The recent calculations submitted to PRA indicate that currently growth in business of UBL UK is restricted by the capital
requirements based on business plan projections. Therefore, an additional 15m (or USD equivalent) of Tier-1 Capital needs
to be injected by the two parent banks in 2014, after which, capital resources are forecasted to be sufficient to meet the capital
requirements of UBL UK and sustain growth in business in 2014.
266
i.
Name of associated company or associated

undertaking along with criteria based on which
the associated relationship is established
United National Bank Limited (UBL UK)

UBL holds 55% shares and the balance 45% shares are held by
National Bank of Pakistan
ii.
Purpose, benefits and period of investments
To ensure that the subsidiary is adequately capitalized and meets

the requirements of regulatory authorities in the United Kingdom.
iii.
Maximum amount of investment
8.25 million (This is the proportionate amount of equity

investment to be made by UBL as 55% shareholder. National
Bank of Pakistan will invest 6.75 million as the 45%
shareholder).
iv.
Maximum price at which securities will be

acquired
At par value of 1 per share.
v.
Maximum number of securities to be acquired
8.25 million shares
vi.
Number of securities and percentage thereof

held before and after the proposed investment
Before: 16.5 million shares constituting 55% of the issued and

paid up capital.
After: 25 million shares constituting 55% of the issued and paid
capital
vii.
In case of investment in listed securities,

average of the preceding twelve weekly
average price of the security intended to be
acquired.
Not applicable
viii.
In case of investment in unlisted securities, fair

market value of such securities determined in
terms of regulation 6 (1)
The Bank has written to SECP regarding this requirement
ix.
Break-up value of securities intended to

be acquired on the bases of latest audited
financial statements
1.27 per share (Based on 2012 audited accounts)
x.
Earning per share of the associated company

or associated undertaking for the last three
years.
2010: (0.02) per share

2011: 0.002 per share
2012: 0.04 per share
2013: 0.21 per share
xi.
Source of fund from which securities will be

acquired
Banks funds
Annual Report 2013
Where the securities are intended to be

acquired using borrowed funds
xii.
a)
Justification for investment through

borrowings and
b)
Detail of guarantees and assets pledged

for obtaining such funds
Not applicable
xiii.
Salient features of the agreement(s), if any,

entered into with its associated company or
associated undertaking with regards to the
proposed investment
The investment is in the nature of further capital injection.
xiv.
Direct or indirect interest of directors,

sponsors, majority shareholders and their
relatives, if any, in the associated company
or associated undertaking or the transaction
under consideration
Not applicable
xv.
Any other important details necessary for the

members to understand the transaction
This is an investment in the shares of UBL UK by way of

subscription to the right issue
xvi.
In case of investment in securities of a project

of an associated company or associated
undertaking that has not commenced
operations, in addition to the information
referred to above, the following further
information required, namely
Not applicable
a)
Description of the project and its history

since conceptualization
b)
Starting and expected

completion of work
c)
Time by which such project shall

become commercially operational; and
d)
Expected time by which the project

shall start paying return on investment
date
of
Item No.9: Additional cost of PKR 0.516 million to be paid to government treasury due to rise in the External Auditors Fee for the year 2013
resulting from levy of 4% sales tax on services provided by auditors
The shareholders of the Bank, in the 54th Annual General Meeting held on 29 March 2013, appointed M/s. KPMG Taseer Hadi and Co.,
Chartered Accountants, and M/s. BDO Ebrahim & Co., Chartered Accountants, as statutory auditors of the Bank for the year 2013 at a fee of
PKR 6.455 million each with out-of-pocket expenses at actual.
Audit services have now been brought into the sales tax net from 1 July 2013 and are liable to sales tax @ 4% i.e. PKR 0.516 million. This tax
would be borne by the Bank, being the final recipient of the service, under VAT model.
The levy of this sales tax would mean that the External Auditors will charge 4% over the amounts originally approved by the shareholders. The
amount charged would be deposited in government treasury. The net fee to the external auditors would remain as previously approved. Out of
pocket expenses would not be affected by this levy.
267
Form of Proxy
55th Annual General Meeting of United Bank Limited
I/We, _____________________________________________________of______________________________ being
a member of United Bank Limited (UBL) and holder of ______________________ ordinary shares as per Share
Register Folio No. ______________________ and / or CDC Participation I.D. No. ___________________________ and
Account No. _____________________________ hereby appoint ______________________ of ____________________
or failing him __________________________________________________of_______________________________ as
my/our proxy to vote for me/our and on my/our behalf at the 55th Annual General Meeting of UBL scheduled to be held on
Friday, 28 March 2014 at 9:30 a.m. at Islamabad Serena Hotel, Islamabad and at any adjournment thereof.
Signed this _______________ day of ________ 2014.
Witness 1:
Signature:
___________________________________
Name:
______________________________________
CNIC No. or Passport No: ______________________
Address:
____________________________________
____________________________________________
Witness 2:
Signature:
___________________________________
Name:
_____________________________________
CNIC No. or Passport No: _______________________
Address:
____________________________________
____________________________________________
Revenue Stamps
of Rs.5/-
_________________________
(Signature should agree
with the specimen signature
registered with the Registrar)
NOTE:
A.
1.
2.
3.
4.
B.
1.
2.
3.
General:
A member entitled to attend and vote at a General Meeting is entitled to appoint a proxy to attend and vote instead of him/her.
No person shall act as a proxy, who is not a member of UBL except that Government of Pakistan / State Bank of Pakistan /
Corporation may appoint a person who is not a member.
The instrument appointing a proxy should be signed by the member or his/her attorney duly authorized in writing. If the member
is a corporation (other than Government of Pakistan and State Bank of Pakistan), its common seal should be affixed on the
instrument.
The instrument appointing a proxy, together with Power of Attorney, if any, under which it is signed or a notarially certified
copy thereof, should be deposited, with our Registrar/Transfer Agents, M/s. THK Associates (Pvt.) Limited, 2nd Floor, State Life
Building No.3, Dr. Ziauddin Ahmed Road, Karachi, not less than 48 hours before the time of holding the meeting.
If a member appoints more than one proxy, and more than one instrument of proxy are deposited by a member with the Registrar,
all such instruments of proxy shall be rendered invalid.
For CDC Account Holders:
The proxy form shall be witnessed by two persons whose names, addresses and CNIC / Passport No. shall be mentioned on the
form.
Attested copies of CNIC or the Passport of the beneficial owners of the proxy shall be furnished with the proxy form.
The proxy shall produce his/her original CNIC or original Passport at the time of the meeting.
Affix
Correct
Postage
Registrar
M/s. THK Associates (Pvt.) Limited,
2nd Floor, State Life Builiding No. 3,
Dr. Ziauddin Ahmed Road,
Karachi, Pakistan

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We have always believed in staying

ahead through technology & innovation,

For you, UBL stays ahead

We strongly believe that you are valuable

UBL On every road to success,

Directors Report to the Members

Corporate Social Responsibility

President & CEO Review

Shariah Advisors Report

Statement of Compliance with the Code of

Review Report to the Members on Statement of

Auditors Report to the Members

Consolidated Statement of Financial Position

Consolidated Profit & Loss Account

Consolidated Statement of Comprehensive Income

Consolidated Cash Flow Statement

Mr. Zameer Mohammed Choudrey

Consolidated Statement of Changes in Equity

Board Human Resource & Compensation Committee

Notes to and forming part of the Consolidated

Mr. Seerat Asghar

Annexure A as referred to in note 9.8 of Groups

Board Risk Management Committee

Annexure C as referred to in note 11.7 of Groups

Consolidated Statement of Financial Position

Annual Statement of Internal Controls

Unconsolidated Statement of Financial Position

Consolidated Profit & Loss Account (in US Dollars)

Unconsolidated Profit & Loss Account

Unconsolidated Statement of Comprehensive Income

Unconsolidated Cash Flow Statement

Unconsolidated Statement of Changes in Equity

Shares Trading (Sale / Purchase) during

Notes to and forming part of the Unconsolidated

Notice of 55th Annual General Meeting

Statement of Material Facts

Annexure A as referred to in note 9.11 of Banks

Annual Report 2013

Chairman / Non Executive Director

Annexure C as referred to in note 11.7 of

Sir Mohammed Anwar Pervez, OBE, HPk

Committees of the Board

Mr. Arshad Ahmad Mir

Chief Financial Officer

Mr. Rayomond Kotwal

Company Secretary & Chief Legal Counsel

Mr. Aqeel Ahmed Nasir

13th Floor, UBL Building, Jinnah Avenue,

State Life Building No. 1, I.I. Chundrigar Road,

M/s. THK Associates (Pvt.) Limited

M/s. KPMG Taseer Hadi & Co.,

M/s. Mahmood Abdul Ghani & Co.

Annual Report 2013

To be a world class bank dedicated to

Annual Report 2013

Annual Report 2013

Annual Report 2013

Annual Report 2013

Annual Report 2013

In 2005, Sir Mohammad Anwar Pervez was