annual report 2016178 annual report 9 date of capital increase increase new capital source of...
TRANSCRIPT
Contents
Saman Bank In 2016/17
Statement of the Board and the CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Key Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
About Saman Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Strategy Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saman’s position in the Securities and Exchange Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Bank’s Legal Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An Overview of Saman’s Operational and Financial Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resource and Expense Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Major Achievements of Bank in Different Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Major Accolades and Achievements of Saman Bank and Saman Financial Group in 2016/17
Saman Financial Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plans and Projects for 2017/18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Report
Independent Auditor’s and Legal Inspector’s Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group Consolidate Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saman Bank (Public Joint Stock Company) Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Explanatory Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Saman Bank In 2016/17
4
7
8
10
12
12
14
19
22
30
40
42
43
44
46
50
56
63
4 5Annual Report
Statement of the Board and the CEO
Yesterday
The financial year 2016/17 was undoubtedly a challenging year for the Iranian banking system. Years of negotiations between Iran and the five world economic leaders (P5+1) finally reached a conclusion, and the signature of the JCPOA in winter 2016 heralded new hope for the Iranian economy. Although the gradual removal of sanctions re-established contact with the international banking system, it also brought to light the fact that it would be necessary to develop the technical, operational and infrastructural capacities required in order to comply with complex, strict standards and to be able to interact productively with international banks and institutions. The new conditions prompted us to pursue even more extensively and diligently our plans to achieve our key goal: “To become the first-choice banking partner for overseas banks.”
Domestically, the Central Bank of Iran (CBI) continued its policy of money supply control and inflation control throughout the year, which reduced interest rates more than once during the year. Although the reduced interest rates promised a positive impact on banks’ profitability, it coincided with the issuance of two separate circulars by the CBI, which adversely affected profits and severely reduced major parts of joint revenue sources. The first circular called for all government, government company and municipality accounts to be centralized within the CBI, and the second circular reduced the gap between interest paid on deposits and interest received from loans. It also stipulated that banks were to avoid paying interest on long-term deposits, simultaneously offering short-term loans to the same clients.
We should bear in mind that approximately 80 percent of the Iranian economy is controlled by the state, and the centralization of government accounts within the CBI means a smaller and more competitive money market for commercial banks, especially privately owned institutions. On the other hand, operational costs were borne by the banks under the existing inflation conditions, and the reduced gap between interest paid and interest gained represents a loss to the banks, which were also responsible for legal deposit costs. Banks experienced similar conditions in the non-joint-revenues section. The economic stagnation had reduced profit and blocked banks’
investments in other markets such as capital and housing markets. No improvement was recorded in fees and charges revenue, in spite of increased operational costs and infrastructural developments during the past five years.
In 2015, the CBI issued a circular stipulating that banks were to pay the costs of using POS systems in retail outlets, despite the major investment in e-commerce and e-payment development. This in itself was responsible for a high increase (IRR 1.064 billion) in our expenses.
Despite all of the above-mentioned challenges, the fact that we had planned with diligent foresight meant that Saman Bank was prepared and equipped to face the new conditions, to effectively manage the restrictions and utilize opportunities in the best possible manner. Our excellent management of resources and expenses, and our focus on our international capabilities enabled us to increase our foreign currency operations from $3.9 billion in 2015/16 to $5.8 billion in 2016/17. The role of the JCPOA in opening up the Iranian banking market and making it more competitive should not be ignored. In such a competitive market, we managed to improve our import market share of 13 percent to 15 percent.
As indicated above, we have invested heavily in our three key areas of business, based on our rigorous forecasts of future developments during the JPA and the start of JCPOA, and taking into account the need to expand our international banking capacities. These actions will continue well into 2017/18.
In order to improve productivity and efficiency, we implemented Enterprise Resource Planning (ERP) systems, purchased from a reputable developer, which facilitate the control and utilization of information in all sectors of the bank including financial, accounting, human resources, supply chain and customer services. ERP will enable us to develop and implement the infrastructure needed to prepare and manage our financial statements in line with IFRS standards, which we will certainly need in our interactions with domestic supervisory bodies as well as our international dealings.
6 7Annual Report
Today
Our goals for the current year include the launch of our innovative new corporate banking and personal banking systems. Thanks to our past investments, we can now develop our Internet banking systems independently. In 2016/17, we invested heavily in developing our mobile banking systems, launching our Mobile Virtual Network Operator (MVNO). The first series of SIM cards under the manufacturer’s brand, SamanTel, will soon enter the market. We intend to offer payment, insurance and value-added services (VAS) on these SIM cards.
Under our current policy, our programs focus on three major goals: cost management, expansion of international banking, and continued optimization of infrastructures. While working hard to increase the bank’s revenues, we strive to maintain our brilliant record with the CBI as a very active bank in the interbank market.
Another major goal that we strongly pursue is that of reducing the bank’s outstanding claims to the lowest possible level. Our previous investments, including the creation of Hafez Saman Iranian Credit Scoring Company, and the concentration of debt-collection activities have brought us closer to this goal.
In 2017/18, we will establish Saman Holding to create synergy in companies in which Saman Bank is a shareholder. We expect this to improve strategic management and increase revenues in those companies, thereby contributing to Saman’s revenues from its investment arm.
We have also managed to obtain authorization to increase our registered capital from IRR 8000 billion to IRR 12000 billion at the end of the financial year 2016/17. We will follow up on this to increase capital through liquidated claims and shareholders’ equity.
With the promise of improved international relations, Saman relies on its international reputation to develop its correspondent banking network through cooperation with major international banks in 2017/2018. We recently opened our representative office in Italy, and will soon open our office in Germany, both of which will further develop our international banking presence. We also signed a finance agreement with Exim Bank of India and are currently working toward establishing finance agreements with a number of European and Asian banks including Danske Bank in Denmark, Oberbank in Austria, and The Export-Import Bank of Korea in South Korea. Furthermore, we have signed agreements and memorandums of understanding with reputable export credit and insurance organizations such as SACE in Italy, and will continue to make the best use of any opportunity that should arise, in order to boost our international banking relations.
Saman Bank Board of Directors
Key Figures
2016/17 2015/16 2014/15
Unit Consolidated Bank Consolidated Bank Consolidated Bank
Key performance indicators during the year
Net revenue from lending and deposits IRR billion (7,663) (7,689) (662) (611) 2,090 2,082
Net revenue from fees and charges IRR billion (318) (514) 13 (28) 331 301
Total operating revenues IRR billion (3,134) (1,789) 2,097 1,255 4,751 4,230
Net profit (loss) IRR billion (1,882) 85 316 103 1,044 1,011
Key items in balance sheet
Lending and claims IRR billion 127,532 127,750 126,692 126,988 117,743 118,112
Total assets IRR billion 257,912 258,035 260,670 257,555 229,991 228,083
Total deposits IRR billion 17,107 17,098 21,806 21,885 21,652 21,695
Total debts IRR billion 34,685 31,977 56,965 53,768 60,157 57,634
Investors’ equity IRR billion 213,660 214,853 193,509 194,174 158,912 159,679
Paid capital IRR billion 8,000 8,000 8,000 8,000 6,588 6,588
Shareholders’ equity IRR billion 9,567 11,205 10,196 9,614 10,922 10,770
Return Rate
Return on Asset Percenage (0.73) 0.03 0.12 0.04 0.45 0.44
Return on Net Worth (ROE) Percenage (19.67) 0.76 3.10 1.07 9.6 9.4
Performance per share
Number of shares 8,000,000,000 8,000,000,000 8,000,000,000 8,000,000,000 6,588,000,000 6,588,000,000
Basic earnings per share (IRR) Rls (m) (235) 11 42 14 138 133
Diluted earnings per share (IRR) Rls (m) (235) 11 40 13 137 132
Dividend per share (IRR) Rls (m) - - - - 80 80
Other information
Personnel Person 3,100 2,406 3,581 2,475 3,453 2,425
Number of branches - 137 - 141 - 145
(Adjusted)
Our next step toward joining the global banking network was to optimize e-banking equipment. In this regard, we have procured the latest software solutions and tailored these to suit our requirements.
The collective efforts of our colleagues across all departments have resulted in numerous awards and accolades for the Bank. Saman’s position improved five steps among the 100 superior companies in Iran, and it now stands in 24th place. Saman’s Customer Complaint system obtained ISO certification, and its Capital Intelligence credit rating improved. Saman was voted first-choice bank for retail banking by more than 50 thousand voters in the context of the “My Favorite Bank” annual festival, and was awarded the prestigious title of “My Favorite Bank.”
Tomorrow
Last year, we produced the bank’s Second 5-Year Strategic Plan, which defined three main areas of focus in Horizon 2021/22. These areas include:
• Development of mobile phone-based e-banking
• Development of corporate and international banking
• Creation of value chain and provision of comprehensive service for customers in target markets
Our vision for 2021/22 is to achieve recognition as a pioneering international bank. We aim to provide our full range of retail banking services and transactions via mobile e-banking, as well as to transform our branches into advice and consultation hubs where the bank meets its clients.
8 9Annual Report
Date of capital increase Increase New capital Source of increase
percentage IRR billion
29.08.2002 0 200 Liquidated claims and shareholders’ equity
27.11.2003 10 220 Liquidated claims and shareholders’ equity
14.10.2004 36.4 300 Shareholders’ equity
7.03.2005 100 600 Liquidated claims and shareholders’ equity
16.11.2005 25 750 Liquidated claims and shareholders’ equity
08.10.2006 20 900 Liquidated claims and shareholders’ equity
13.01.2010 100 1,800 Liquidated claims and shareholders’ equity and
denying rights of preference
20.03.2011 66.7 3,000 Liquidated claims and shareholders’ equity
19.03.2012 33.3 4,000 Shareholders’ equity
21.10.2012 64.7 6,588 Surplus of assets revaluation
09.03.2016 21 8,000 Shareholders’ equity and accumulated profit
Shareholder March 20,2017
Number of Shares Percentage
Pension Fund of National Iranian Copper Industries Company 624,530,308 7.81
Steel Industries Pension Fund 400,088,117 5.00
Mines and Metals Development Investment Company (Public Joint-Stock) 323,686,501 4.05
Mohammad Zarrabieh 315,266,280 3.94
Parsian Bank Financial Group Company (Private Joint-Stock) 244,163,829 3.05
Saman Investment Development Company 239,999,995 3.00
Havva Chayi Dehkhuyi 214,307,862 2.68
Vali Zarrabieh 201,660,057 2.52
Seyed Mehdi Ghafouri 181,316,669 2.27
Seyed Ahmad Akhavan Dastmalchi 166,800,291 2.09
Other individual shareholders 3,741,848,402 46.77
Other corporate shareholders 1,346,331,689 16.83
8,000,000,000 100
March 20, 2017 March 19, 2016
Number ofShareholders
Number ofShares
Percentage Number of
Shareholders Number of
SharesPercentage
Individual 4150 4,821,199,561 60.26 3501 4,787,934,738 59.85
Corporate 69 3,178,800,439 39.74 68 3,212,065,262 40.15
4219 8,000,000,000 100.00 3569 8,000,000,000 100.00
About Saman Bank
Saman began its official activity on September 2, 1999 as the first credit institution in post-revolutionary Iran under the name Saman Eghtesad. Saman Eghtesad was registered with the Corporate and Noncommercial Entities Register under number 154444, with an initial capital of IRR 11 billion.
In September 2002, Saman Eghtesad had accumulated sufficient capital to obtain a banking license from the Central Bank of the Islamic Republic of Iran. This opportunity allowed the institution to enter a new phase of its life as a privately owned bank.
Scope of Activities
The bank’s scope of activities is detailed in Article 3 of the Memorandum of Association. A summary is presented below:
• Opening and maintaining different types of bank accounts including current and savings accounts
• Accepting term deposits and issuing deposit certificates
• Providing loan and finance products within the framework of rules and regulations and the standards of non-usurious banking laws
• Operating in currency markets domestically and internationally
• Administering all types of credit instruments including documentary letters of credit
• Issuing L /C and different types of checks
• Issuing and trading bonds
• Partnership and investment
• Any other banking and business activity allowed under relevant rules and regulations
Capital
At the time of registration, the bank’s capital was IRR 200 billion (divided into 200 million shares, each of IRR 1,000 nominal value) which has subsequently increased, as follows:
Shareholder Structure
The list of Saman shareholders as at the end of the financial year 2016/17 is presented in the following table.
Individual and corporate share ratio:
Corporate 39.74 Individual 60.26
10 11Annual Report
Saman extended its 5-year customer-centric strategic plan initiated in 2010 for the financial year 2016/17.
Our Vision
• To serve as the first choice in Iranian banking for target customers, which include:
- In-branch customers for electronic-banking services in physical bank locations;
- Private (VIP) and Premier Customers;
- Large- and medium-sized businesses (domestic and international) for international transactions.
• To operate as the first-choice banking partner for overseas banks;
• To maintain the bank’s position as a first-choice employer for the most talented banking professionals;
• To secure the largest market share of international transactions amongst privately owned Iranian banks.
Our Mission and Values
Saman Bank strives to create real added value for its customers and to encourage their loyalty through the consistent delivery of quality services that are defined by convenience, reliability, and respect of social values.
To these ends, we introduced and continue to uphold the following values:
• Customer-centric culture
• Human capital
• Transparency
• Organisational culture
Our Strategic Goals
Our Vision and Mission Statements guide us in our pursuit of the following objectives:
• To classify customers and to tailor organizational structures and procedures to their needs;
• To maximize customer loyalty;
• To increase non-joint revenues;
• To enhance operational efficiency through improved procedures and increased internal control and supervision;
• To expand the investment portfolio;
• To improve risk management;
• To boost the profitability of branch operations.
Strategy Statement
12 13Annual Report
Saman’s position in Securities and Exchange Organization
The Bank’s Legal Environment
According to notification number 90-851 dated November 16, 2011 by Iran Fara Bourse, Saman was listed in the Banks and Credit Institutions group as the 49' stock symbol (29' company in the first market) and was assigned the stock symbol “ZeSaman.” On June 07, 2013, Saman Bank’s listing was transferred to the main market of the Iran Stock Exchange as per IFB’s letter no. 91/03/3035.
The following laws and regulations are the most important rules governing Saman’s activities:
• The Monetary and Banking Act of Iran ratified in 1972 and its subsequent amendments;
• The Law for Usury (Interest) Free Banking ratified in 1983;
• The Law annexing two notes to Article 15 of the Law for Usury (Interest) Free Banking as amended in 1997;
• The Law permitting the Establishment of Privately-Owned Banks passed in 2000;
• The Law regulating Non-Regulated Money Market passed in 2004;
• The Anti Money Laundering Act passed in 2007;
• The Banking Regulations Act passed in 1979;
• Law adjusting Bank Loan Interests to the Return Rate in Different Economic Sectors, passed in 2006;
• Law banning Bank Borrowers from leaving the Country passed in 1980;
• The Cheques Act passed in 2003;
• The Direct Taxation Act passed in 1987;
• The By-Law on Enforcing Legally-Binding Documents;
• Article 34 of the Registration Act as amended;
• Commercial Code passed in 1932 and its subsequent amendments;
• E-Commerce Law passed on 25th January 2004;
• Negotiable Instruments Market Law passed on 22 November 2005;
• By-laws and guidelines circulated by the Central Bank of Iran;
• By-laws and guidelines circulated by the Securities and Exchange Organization;
• Supervision packages and policies of the CBI, which act as guidelines for the bank’s operations and other legal activities during the reported year;
• General policies adopted under Article 44 of the Constitution;
• Monetary and Banking Act;
• Law requiring issuance of national identification number and postal code to all citizens;
• Approvals by Money and Credit Council;
• Saman’s Articles of Association.
14 15Annual Report
20/03/2017
IRR billion PercentagePercentage
Increase (decrease) comparedwith previous year
Assets
Cash 31,495 12.21 (36.20)
Due from banks and other credit institutions 9,676 3.75 (24.60)
Loans and advances to customers 127,750 49.51 0.60
Investment in stocks and securities 2,778 1.08 (14.23)
Due from subsidiaries and affiliates 3,579 1.39 247.29
Other accounts receivable 5,946 2.30 (5.20)
Tangible fixed assets 3,613 1.40 0.53
Intangible assets 4,301 1.67 4.41
Legal deposit 23,036 8.93 9.01
Other assets 45,862 17.77 54.91
Total 258,035 100 0.19
Liabilities
Due to banks and other credit institutions 5,475 2.12 (79.75)
Customer deposits 17,098 6.63 (21.87)
Dividends payable 52 0.02 (66.58)
Debt instruments - 0.00 0.00
Income tax provision - 0.00 0.00
Other debts and provisions 8,813 3.42 106.47
Provision for employee termination benefits 537 0.21 29.59
Total liabilities before investment accounts equity 31,977 12.39 (40.53)
Investment accounts equity 214,853 83.27 10.65
Total liabilities 246,830 95.66 (0.45)
Shareholders’ equity
Share capital 8,000 3.10 0.00
Ongoing capital increase - 0.00 0.00
Legal reserve 1,537 0.60 0.83
Assets revaluation surplus 1,507 0.58 223,120.85
Retained earnings 161 0.06 80.50
Total equity 11,205 4.34 16.55
Total liabilities and equity 258,035 100 0.19
19/03/2016 20/03/2015
IRR billion PercentagePercentage
Increase (decrease) comparedwith previous year
IRR billion
Assets
Cash 49,362 19.17 13.80 43,376
Due from banks and other credit institutions 12,834 4.98 7.39 11,950
Loans and advances to customers 126,988 49.31 7.52 118,112
Investment in stocks and securities 3,239 1.26 32.45 2,445
Due from subsidiaries and affiliates 1,031 0.40 (13.13) 1,186
Other accounts receivable 5,652 2.19 231.54 1,705
Tangible fixed assets 3,594 1.40 7.01 3,359
Intangible assets 4,120 1.60 6.69 3,861
Legal deposit 21,131 8.20 8.30 19,512
Other assets 29,606 11.50 31.13 22,577
Total 257,555 100 12.92 228,083
Liabilities
Due to banks and other credit institutions 27,042 10.50 (5.96) 28,755
Customer deposits 21,885 8.50 0.88 21,695
Dividends payable 157 0.06 (15.49) 186
Debt instruments - 0.00 0.00 1,000
Income tax provision - 0.00 0.00 -
Other debts and provisions 4,269 1.66 (25.14) 5,702
Provision for employee termination benefits 415 0.16 39.93 296
Total liabilities before investment accounts equity 53,768 20.88 (6.71) 57,635
Investment accounts equity 194,174 75.39 21.60 159,679
Total liabilities 247,941 76.21 14.09 217,314
Shareholders’ equity
Share capital 8,000 3.11 21.43 6,588
Ongoing capital increase - 0.00 (100) 318
Legal reserve 1,524 0.59 5.21 1,448
Assets revaluation surplus 1 0.00 0.00 1
Retained earnings 89 0.03 (96.30) 2,414
Total equity 9,614 3.73 (10.72) 10,769
Total liabilities and equity 257,555 100 12.92 228,083
An Overview of Saman’s Operational and Financial Performance
Balance sheet
16 17Annual Report
20/03/2017
IRR billion PercentagePercentage
Increase (decrease) compared withprevious year
Revenues
Interest income 24,259 63.49 (22.22)
Fee and commission income 1,329 3.48 19.10
Net investment profit (loss) 5,030 13.16 739.95
Net foreign currency transactions profit (loss) 1,385 3.62 6.84
Other incomes 6,207 16.24 83.64
Total income 38,209 100 1.67
Expenses
Interest paid on deposits (31,948) 83.80 0.46
Fees and commissions expenses (1,843) 4.83 61.10
General and administrative expenses (3,586) 9.41 9.18
Doubtful dues expenses (300) 0.79 (60.83)
Financial expenses (2) 0.00 (96.98)
Depreciation (445) 1.17 5.33
Total expenses (38,124) 100 1.72
Profit (loss) before tax 85 (17.60)
Income tax
Net profit (loss) 85
Income Statement Information
19/03/2016 20/03/2015
IRR billion PercentagePercentage
Increase (decrease) compared withprevious year
IRR billion
Revenues
Interest income 31,190 83 13.35 27,517
Fee and commission income 1,116 2.97 0.88 1,106
Net investment profit (loss) 599 1.59 (38.63) 976
Net foreign currency transactions profit (loss) 1,296 3.45 48.69 872
Other incomes 3,380 8.99 80.00 1,878
Total income 37,581 100 16.18 32,348
Expenses
Interest paid on deposits (31,802) 84.85 25.03 (25,435)
Fees and commissions expenses (1,144) 3.05 42.04 (805)
General and administrative expenses (3,285) 8.76 14.26 (2,875)
Doubtful dues expenses (766) 2.04 (51.85) (1,591)
Financial expenses (59) 0.16 (77.59) (264)
Depreciation (423) 1.13 15.30 (367)
Total expenses (37,478) 100 19.60 (31,337)
Profit (loss) before tax 103 (89.84) 1,011
Income tax
Net profit (loss) 103 1,011
18 19Annual Report
2016/17 2015/16
Percentage Percentage
Capital adequacy ratio 7 8
Lending to deposits ratio 55.54 59.36
Lending to total assets ratio 49.51 49.31
Total expenditure to total revenue ratio 99.78 99.73
Debt ratio 12 12
Assets return ratio 0.03 0.04
Return on capital ratio 1.1 1.28
Total deposits to total assets ratio 89.15 83.07
Total deposits to capital ratio 2875.32 2674.30
Loan interest to total revenues ratio 63.49 83.00
Dividend to total expenditures ratio 83.80 84.85
Doubtful dues expense to total expenditures ratio 1 2.04
2016/17 2015/16
IRR billion IRR billion
Deposit per branch ratio 1,661 1,507
Lending per branch ratio 922 894
Net profit per branch ratio 1 1
Deposit per average employee size ratio 95 86
Lending per average employee size ratio 53 51
Net profit per average employee size ratio 0,035 0,041
2016/17 2015/16
Amount Percentage from Total Amount Percentage from Total
IRR billion IRR billion
Demand deposits – IRR 9,266 4.03 10,445 4.88
Saving deposits and similar accounts- IRR 541 0.24 555 0.26
Term deposits – IRR 197,056 85.67 178,319 83.35
Foreign currency deposits 22,448 9.76 23,677 11.07
Other deposits- IRR 714 0.31 948 0.44
230,025 100 213,944 100
2016/17 2015/16
Amount Percentage from Total Amount Percentage from Total
IRR billion IRR billion
Interest-bearing deposits 212,927 92.57 192,059 89.77
Non-interest-bearing deposits 17,098 7.43 21,885 10.23
230,025 100 213,944 100
2016/17 2015/16 2014/15 2013/14 2012/13
IRR billion IRR billion IRR billion IRR billion IRR billion
Total deposits 230,025 213,944 182,144 160,880 107,033
Percentage change to previous year 7.52 17.46 13.22 50.31 27.79
2016/17 2015/16 2014/15 2013/14 2012/13
IRR billion IRR billion IRR billion IRR billion IRR billion
Saman Bank Deposits 230,025 213,944 182,144 160,880 107,033
Total Banking System Deposits 12,728,364 10,619,015 8,192,761 6,844,166 4,977,262
Percentage of Saman’s Share of Total Deposits 1.81 2.01 2.22 2.35 2.15
Resource and Expense Analysis
Deposits
Key performance indicators for attracting deposits (in Iranian and foreign currencies) are as follows:
Key Performance Indicators
Key performance indicators for the years 2016/17 and 2015/16 are shown in the following table:
Interest-bearing versus Non-interest-bearing Deposits
Saman Bank Deposits compared with the Iranian Banking System’s Total Deposits
Comparison Table of Deposits
Deposits
250,000
200,000
150,000
100,000
50,000
2012/13 2013/14 2014/15 2015/16 2016/17
20 21Annual Report
2016/17 2015/16
AmountPercentage from Total
Amount Percentage from Total
IRR billion IRR billion
Installment sale loan 6,652 5.2 4,801 3.8
Joala (commission-based contract) loan 7,505 5.9 3,402 2.7
Ijara (Lease ending with Ownership ) loan 2,089 1.6 2,093 1.6
Qard al-hasan (Interest-free) loan 764 0.6 141 0.1
Mudaraba (trust financing contract) loan 11,991 9.4 13,511 10.6
Diminishing Musharaka (co-ownership) loan 86,278 67.5 89,776 70.7
Debt purchase 5,658 4.4 4,869 3.8
Foreign currency loan 4,786 3.7 5,038 4.0
Letters of Credit issued 1,345 1.1 2,062 1.6
Letters of Guarantee issued 536 0.4 1,233 1.0
Others 148 0.1 61 0.0
127,750 100 126,988 100
2016/17 2015/16 2014/15 2013/14 2012/13
IRR billion IRR billion IRR billion IRR billion IRR billion
Total Lending 127,750 126,988 118,112 103,095 76,224
Percentage change to previous year 0.60 7.52 14.57 35.25 13.85
Types of Deposit 2016/17 2015/16
IRR billion Percentage from
TotalIRR billion
Percentage fromTotal
Short-term investment deposits 13,636 42.68 13,194 41.49
One-year investment deposits 13,386 41.90 12,032 37.83
Two-year investment deposits 12 0.04 677 2.13
Three-year investment deposits 14 0.04 19 0.06
Four-year investment deposits 15 0.05 15 0.05
Five-year investment deposits 4,342 13.59 5,204 16.36
Deposit certificates 1 0.004 129 0.41
Termed deposits of banks and other credit institutions 141 0.44 40 0.13
Foreign currency deposits 401 1.25 491 1.54
31,948 100 31,802 100
Types of Loan 2016/17 2015/16
IRR billion Percentage from
TotalIRR billion
Percentage fromTotal
Installment sale loan 819 3.65 224 0.76
Joala (commission-based contract) loan 486 2.17 384 1.31
Ijara (Lease ending with Ownership ) loan 87 0.39 900 3.07
Mudaraba (trust financing contract) loan 1,910 8.52 3,858 13.15
Diminishing Musharaka (co-ownership) loan 17,188 76.67 21,113 71.96
Debt purchase 910 4.06 990 3.37
Penalty clause 536 2.39 681 2.32
Foreign currency loans 83 0.37 222 0.76
Others 401 1.79 967 3.30
22,420 100 29,338 100
2016/17 2015/16 2014/15 2013/14 2012/13
IRR billion IRR billion IRR billion IRR billion IRR billion
Saman Bank Lending 127,750 126,988 118,112 103,095 76,224
Total Banking System Lending 9,866,616 7,916,102 6,739,744 5,719,260 4,390,642
Percentage of Saman’s Share of Total Lending 1.29 1.60 1.75 1.80 1.74
Lending
The following is a summary of Samans performance indicators for lending:
Interest paid to investment deposits
Revenue from Lending
Revenues earned from loans granted in financial years 2016/17 and 2015/16 are as follows:
The interest paid on investment deposits by type of deposit in the years 2016/17 is as follows:
Comparison Table of Lending
Lending
Saman Bank Lending compared with the Iranian Banking System’s Total Lending
140,000
120,000
100,000
80,000
60,000
40,000
20,000
2012/13 2013/14 2014/15 2015/16 2016/17
22 23Annual Report
2016/17 2015/16 2014/15 2013/14 2012/13
Number 1,458 1,308 1,224 1,006 804
Percentage change to previous year 11.47 6.86 21.67 25.12 20.36
2016/17 2015/16 2014/15 2013/14 2012/13
Number 1,384,438 1,742,387 2,010,187 1,570,922 1,003,959
Percentage change to previous year (20.54) (13.32) 27.96 56.47 (62.46)
2016/17 2015/16 2014/15 2013/14 2012/13
Number 203,311 201,027 195,308 159,462 107,123
Percentage change to previous year 1.14 2.93 22.48 48.86 (5.44)
2016/17 2015/16 2014/15 2013/14 2012/13
Person Person Person Person Person
Net Bank 859,332 780,333 683,845 570,238 431,383
Samanak 559,461 453,379 344,496 231,741 97,450
Telephone Bank 863,763 836,264 789,270 712,431 601,747
Total 2,282,556 2,069,976 1,817,611 1,514,410 1,130,580
Percentage change to previous year 10.27 13.88 20.02 33.95
Electronic Banking
• Number of ATMs increased to 1458 units;
• ATM network optimised by relocating 127 ATM units;
• Samanak (Saman mobile app) publicity campaign planned and executed;
• Online money transfer services (moving money between accounts in the bank or between banks through SATNA and PAYA systems) and online statements developed;
• Top-up service for all phone operators made available through ATM and e-shop;
• Cash acceptor and cash recycler units commissioned and operated;
• Technical documents developed for monitoring system of ATMs and pay-in machines.
5-Year Comparison Table of ATM Numbers
5-Year Comparison Table of Card Reader Numbers
5-Year Comparison Table of Debit and Credit Card Numbers
5-Year Comparison Table of Virtual Banking Customer Numbers
Number of Card Readers
Number of ATMs
Number of Debit and Credit Cards
Number of Virtual Banking Customers
250,000
200,000
150,000
100,000
50,000
1600
1400
1200
1000
800
600
400
200
Major Achievements of Bank in Different Areas
2012/13 2013/14 2014/15 2015/16 2016/17
2012/13 2013/14 2014/15 2015/16 2016/17
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2012/13 2013/14 2014/15 2015/16 2016/17
2,500,000
2,000,000
1,500,000
1,000,000
500,000
2012/13 2013/14 2014/15 2015/16 2016/17
24 25Annual Report
Corporate Banking
• Claims reduced for IRR 1,734 billions (compared with similar period in 2015/16);
• Foreign currency operations increased to USD 3,800 millions;
• New loans paid in the amount of IRR 31,000 billions;
• Different types of letters of guarantee worth IRR 4,253 billions issued;
• Express banking kiosks launched in KLM and Air France offices.
Premier and Private Banking
• Offered discounted tour, travel and CIP services to Premium Customers;
• Issued 11,832 insurance policies including complementary health insurance, third-party and comprehensive car insurance, and travel insurance policies;
• Developed Farda University Fee Insurance Package and sold 2200 policies;
• Increased the number of stores and service centers offering exceptional services to Premium Customers;
• Launched the second project of the Customers’ Club called “Memorable Journey” and awarded 33 prizes of IRR 10 million to 500 million to Premium Customers;
• Designed and implemented an incentivization program for Premium Customers called “Samanian 4-Star Festival”;
• Launched private banking offices in Tabriz and in Sarv branch, Tehran;
• Offered financial and investment services (including portfolio management as well as Amin, Novin and Yekom Venture Capital Funds);
• Designed and introduced Mobasher Bours (stock market operators’ service) for the administration of customers’ portfolios.
Attracted new customers and increased resources during the year
Beginning of the Year End of the Year
IRR billion IRR billion
Number of Premium Customers 6,600 6,831
Number of VIP Customers 309 368
Total 6,909 7,199
Beginning of the Year End of the Year
IRR billion IRR billion
Resources of Premium Customers (IRR billion) 57,153 57,745
Resources of VIP Customers (IRR billion) 22,485 29,463
Total 79,638 84,208
Retail Banking• Optimized branch network by relocating poorly functioning branches;
• Establishing City Centre branch in Isfahan;
• Expanded ATM support network;
• Considerably increased zero-cost resources in 2016/17;
• Regularly met with branch managers and supervisors to boost performance and responsiveness;
• Increased number of branches offering foreign currency services to businesses from 34 to 39.
Microcredit and SME Loans
During the reported year, various small and medium-sized enterprises and trading units were categorized based on their business size, credit records and assessed risks. Specific lending limits were set for each group of selected enterprises, and each branch was assigned a selected list of trades to attend to their credit needs.
Since the beginning of the year, the credit reference obtained from Hafez Saman Iranian Credit Scoring Company has served as one of the main criteria when assessing new loan applications. In collaboration with Saman Processing Co. we developed a special credit system to organize lending to sole traders. The final version of this system was delivered at the end of the year and was introduced for pilot use.
The bank issued hundreds of small loans as part of their social responsibility scheme. 6,271 marriage loans (interest-free) totaling IRR 651,921 million were paid to eligible newly-wed couples. Low-income families in receipt of benefits from Imam Khomeini Relief Committee received IRR 54,485 million in the form of 424 interest-free loans, and 81 other interest-free loans, amounting to IRR 8,256 million, were awarded to those covered by the State Welfare Organization. Loan applications by small and medium-sized enterprises introduced by the Business Development Committee were admitted and processed as requested by the Central Bank.
26 27Annual Report
2016/17 2015/16 2014/15 2013/14 2012/13
USD thousand USD thousand USD thousand USD thousand USD thousand
Import Letters of Credit 502,813.68 518,183.54 1,396,202.95 1,189,815.53 3,361,706.09
Import Bills of Exchange 291,961.49 47,113.77 46,267.97 284,308.07 553,234.48
Letters of Guarantee 32,147.71 13,376.36 20,432.47 12,520.93 21,692.63
Incoming International Money Orders 1,749,914.42 3,585,331.59 3,835,947.96 1,457,038.19 2,232,541.01
Outgoing International Money Orders 4,793,457.63 3,267,209.90 4,463,985.81 4,574,919.04 3,496,265.21
Cost Price Mean Capital Profit(Loss)
IRR billionpercentage change to
previous yearIRR billion
percentage change to previous year
IRR billion
2013/14 1,435 - 719 - 468
2014/15 1,236 (14) 1,498 108 (267)
2015/16 1,140 (8) 925 (38) 144
2016/17 576 (49) 1,632 76 139
International Banking
• As the international sanctions were lifted, Saman’s International Banking Department focused its efforts on expanding its correspondent banking network, liaising with around 40 new foreign banks and opening accounts with 22 more. Our current correspondent banking network includes around 300 banks all over the world.
• The JCPOA and its subsequent agreements have enabled previously sanctioned banks to re-enter the international banking market. In spite of this, Saman managed to acquire a 10 percent share of the overall foreign currency operations in the Iranian banking system, as shown by the CBI data.
• Saman surpassed its set target for revenue from currency transactions and generated IRR 1,385 billion (6 percent over the approved target) during the reported year.
• Foreign currency operations during the past five years are summarized in the following table:Major activities in the area of foreign investment during the reported year include:
• The design of a mechanism to offer custodian services to international investors;
• Banking services for international customers;
• Investment consultancy for international investors.
Investment and assemblies affairs
2016/17 was a challenging year for the Tehran Stock Exchange.Government policies on inflation control alongside liquidity cash, the Trump shock, and the reduction in the global price of metals are among the factors which influenced the Iranian capital market. The overall effect was that the TSE Index dropped 4.89 percent during the year.
Portfolio management is one of the important activities of Saman’s Investment Department. The bank’s portfolio in 2016/17 comprised of shares, fixed-income funds, mutual funds and Islamic treasury bills. Due to the higher return rate of Islamic treasury bills compared with other investment options, and the reduced bank and interbank interest rates, Saman deemed it wise to invest. As a result, our investment in Islamic treasury bills increased considerably and the annual mean capital increased from IRR 924 billion at the start of the year to IRR 1,631 billion at the end. The reduced cost price of Saman’s portfolio at the end of the year is due to the sale of Islamic treasury bills.
The following diagram shows the structure of Saman’s investment portfolio at the end of 2016/17:
Some key performance indicators of Saman’s investment portfolio are presented in the following table:
Shares of Stock
Receivables
Cash and cash Equivalents
Mutual fund units
Fixed-income securities
20%
9%
4%
6%
61%
28 29Annual Report
Inspection and Compliance
• Organizing EURO MONEY (KYC and anti-money-laundering) training course for compliance officers, taught by international instructors;
• Planning and coordinating courses on financial crime prevention and compliance by International Compliance Association (ICA) for the bank’s compliance officers and anti-money-laundering inspectors;
• Updating the bank’s compliance procedures based on the latest international standards;
• Preparing standards and bilingual documentation on compliance procedures to be audited by EDO and EY companies. There has been 70 percent progress in the audit process underway by these companies;
• Design, analysis and implementation of Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) solutions;
• Procurement of OMNIEnterprise anti-money-laundering and compliance software from INFRASOFT based on the assessment of our needs and requirements;
• Adjustments and modifications toward better control of lending operations in branches (operating-system errors, access levels and software modifications);
• Designing BOOTSTRAP 3-based and JQUERY-based user-friendly interface for fraud detection software in order to provide easier access to different sections. Also, designing and developing the second version of smart control software in foreign currency, Iranian currency, loans, and customer sections;
• Employing control rules on foreign currency transactions aimed at facilitating control and minimizing the need for physical inspection as well as saving financial resources;
• Controlling a large group of operational accounts including debtors' accounts, fines, interbank checks, customer savings and so on in order to prevent and control fraudulent activities;
• Designing rules and enforcing necessary controls to monitor incomplete or outdated customer information for the purpose of fraud prevention or detection.
Financial Management
• In spite of the reduced interest rate on deposits, and while most of the other commercial banks experienced a negative balance in their Central Bank’s account, Saman did not experience cash shortfall and its account was not negative even for a single day. Saman responded to all monetary needs of its customers nonstop during the year through SATNA, PAYA and SHETAB operations;
• During the reported year, Saman was a depositor in the interbank market for 344 days and became a receiver of deposits only for 22 days due to exceptional market conditions;
• The revenue from the interbank market in 2016/17 amounts to IRR 1,354 billion. Proposals for investment in other sectors are submitted to the Assets and Debts Committee. All investments need to be approved by the Investment Department;
• The “Liquidity Management Project” was introduced to develop and execute a new business model involving the use of self-service express banking machines;
• The operational program for 2017/18 was devised and circulated;
• Managerial reports in the areas of deposits, cost price, and branch profitability records were prepared and submitted;
• Any deviation from budget and program in the bank and its branches was properly reported.
30 31Annual Report
Corporate Governance
Board of Directors
Vali Zarrabieh, ChairmanMr. Zarrabieh, also a board member in Saman Electronic Payment Company, Hafez Saman Iranian Credit Scoring Company, and Saman Processing Company, served as the first Deputy CEO of Saman Bank and was appointed as CEO in June 2010. In 2013, he was elected Chairman of the Board. Mr. Zarrabieh holds a master’s degree in finance from the CASS Business School of London, specializing in corporate finance and valuation, as well as an MBA from Manchester Business School, UK, specializing in strategy.
Executive CommitteeMembers of the Committee: The CEO, Deputy CEO (in CEO’s absence) and the senior vice presidents
Head of the Committee: The CEO
Secretary of the Committee: Mr. Hosein Vaez Ghamsari
Objectives of the Committee:
• According to Article 3 of the Bank’s Articles of Association, the Executive Committee is responsible for
approving all procedures regarding the operations and transactions within the scope of activities of the bank.
• It is also responsible for the control of the approved plan and budget.
• The Executive Committee is responsible for establishing limits of power and determining decision-making
processes for the bank’s executive departments and teams.
• The Executive Committee is also responsible for the administration and supervision of the performance of all
executive departments and subordinate companies.
• Decision-making in all executive matters in dealing with third parties is the responsibility of the Executive
Committee as set out in Article 84 of the bank’s Articles of Association.
Strategy and Budget CommitteeMembers of the Committee: Chairman of the Board, one member of the Board, Senior Advisor to the Board, CEO or Deputy CEO, VP Financial and Planning, VP IT (if warranted by the subject at hand)
Secretary of the Committee: Dr. Reza Aghababaei
Objectives of the Committee: To ensure the bank’s survival and profitability through aligning its organizational structure and strategies with the desired status and its objectives, mission and vision.
Audit CommitteeMembers of the Committee: Chairman of the Board, one member of the Board, three advisors to the Board
Secretary of the Committee: Mr. Javad Goharzad
Objectives of the Committee: To help the Board oversee the efficiency of the internal control system, financial reporting processes, and proper functioning of accounting systems and financial controls to ensure accurate financial statements as well as full compliance with relevant laws and regulations, supervisory requirements and the bank’s policies.
Ahmad Mojtahed, Vice ChairmanA former Head of the Monetary and Banking Research Academy (MBRA) and Advisor to the Governor of the Central Bank of Iran and to the Minister of Economic Affairs and Finance, Dr. Mojtahed joined Saman in March 2010 as Vice President in Plan and Development as well as Chairman of the Board of the Iranian Credit Bureau and Credit Scoring Company. He was elected Chairman of Saman Bank’s Board of Directors in September 2012, serving as the Vice Chairman since March 2013. With a PhD in Economics from Iowa State University, USA, Dr. Mojtahed also enjoys a successful academic career as a researcher and professor at Allameh Tabatabaei University.
Farideh Geraminejad, Member of the boardBefore joining the board, Ms. Geraminejad served as Saman’s International Banking Director. She worked at Tejarat Bank from 1977 to 2009 and her latest position was the Head of Treasury and Correspondent Relations. Ms. Geraminejad holds a bachelor’s degree from the University of Tehran.
Gholamreza Khalil Arjmandi, Member of the boardMr. Gholamreza Khalil Arjomandi has been working as a board member and vice president of finance and investment in Saderat Bank, Shahr Bank and TOSE Credit Institute since 2007. Also in his background, he has been a board member in Securities and Exchange Organization as well as chairman of Audit Committee in that organization. He is a board member in Saman Bank since June 2016.He holds a DBA degree and a Ph.D. in Economics. He is also a member of the faculty of Islamic Azad University and managing director in charge of "Eghtesad e Khalagh" journal
Board Meetings
During the reported year, the Board met 69 times (minimum one meeting per week) and adopted decisions on major issues within the bank.
Executive Compensation
• The Board of Directors approves the CEO’s salary, benefits and bonuses.
• The Annual General Meeting approves bonuses for the Board of Directors in compliance with the provisions of the Commercial Code. The Board decided at the reported year’s AGM not to take any bonus.
Board Committees
32 33Annual Report
Risk CommitteeMembers of the Committee: Three members of the Board (Chairman, Vice Chairman and one member), Risk Senior Advisor to the Board
Secretary of the Committee: Manouchehr Dabirian
Objectives of the Committee: To oversee that the risk management policies and processes are all up-to-date and correctly observed, to supervise implementation of policies and directives adopted by the Committee and the Board, to ensure that a desirable level of capital adequacy ratio is maintained, and to adopt necessary measures to preserve and further improve the bank’s reputation.
Human Resources Development and Compensation CommitteeMembers of the Committee: Chairman of the Board, one member of the Board, Senior Advisor to the Board, CEO or Deputy CEO, Human Resources Director (with no voting right)
Secretary of the Committee: Ms. Fereshteh Zarrabieh
Objectives of the Committee: To plan for recruitment, development, training, and maintaining human capital in order to create sustainable value toward fulfillment of the bank’s objectives and policies.
Internal Audit and Control
By adopting a systematic and effective approach, the Internal Audit and Control improves the efficiency of the bank’s governance system, risk management and control.
The senior management of Saman appreciate the importance of internal auditing as a key principle in corporate governance. With this in mind, they strive to ensure that all of the departments and units within the organization are fully aware of their roles and value, and make timely and effective use of internal audit findings to address any problems that may arise.
The bank’s approach to internal auditing is to ensure the effectiveness of internal controls and full compliance with international standards and relevant regulations such as the updated COSO Internal Control – Integrated Framework (2013 Framework) as well as those of the Central Bank of Iran (CBI), recommendations of the Basel Committee and the requirements of the Securities and Exchange Organization of Iran (SEO).
As the executive arm of the Audit Committee, the Internal Audit and Control Unit assesses the efficiency and effectiveness of operations, the reliability of financial reporting, and compliance with rules and regulations. Auditing reports are first discussed in the Audit Committee and then in the Board of Directors. Proper decisions are made by the Board, which are then circulated to the executive units. In special cases, internal auditors might be invited to actively participate in the decision-making process.
In order to safeguard the interests of the stakeholders and ensure the effectiveness of internal control in subordinate companies, internal auditing in Saman Group companies is also entrusted to the Internal Audit and Control Unit. In 2015/16, the Internal Audit and Control Unit reviewed all measures adopted by the management to address the recommendations of the previous year’s report (2014/15) and undertook the internal auditing of important activities of subordinate companies. The respective report was duly submitted to the senior management and the Audit Committee.
In 2015/16, the Internal Audit and Control Unit undertook the auditing of retail and SME banking, microcredit and SME lending, corporate banking, knowledge management, processes management, business solutions, financial resources and IT departments.
34 35Annual Report
Seyed Ahmad Taheri Behbahani; CEOWith over half a century of experience in the banking industry, Mr. Taheri Behbahani has held the position of CEO of Saman since 2013. He was employed since 2011 as Senior Executive Advisor to the Board. His career highlights in managerial, advisory and executive positions include CEO of Eghtesad Novin (EN) Bank, CEO of Bank of Sharjah, CEO of Iran Overseas.Investment Bank in London, and the regional manager of Bank Melli Iran branches in the Persian Gulf, Dubai and Abu Dhabi. Mr. Taheri Behbahani holds a bachelor’s degree in English language and literature from Shiraz University.
Reza Aghababaei; Deputy CEOMr. Reza Aghababaei has held the position of Deputy CEO since July 2016. He has been with Saman Bank for many years in different managerial and executive positions including Executive VP for Lending, Director of Planning and Research, Director of Investment Affairs, Director of Corporate Banking, VP for Retail Banking and VP, Banking. Mr. Aghababaei holds a doctorate degree in economic development from the University of Tehran.
Javad Goharzad; Director of Internal Audit and ControlMr. Javad Goharzad has held the position of Director of the Internal Audit and Control Unit since 2007 and reports to the Board of Directors. He holds a master’s degree in accounting from Islamic Azad University. Mr. Goharzad is a certified accountant and auditor and a member of numerous professional bodies, including the Iranian Association of Certified Public Accountants (IACPA), the Iranian Institute of Certified Accountants (IICA), the Institute of Internal Auditors (IIA) and the Iranian Association of Official Experts (IAOE).
Reza Isfandyari; Executive VP LegalMr. Isfandyari has held the position of Executive VP Legal since August 2013. His former position was Legal Advisor to the CEO of Saman Bank. He holds a master’s degree in private law.
Alireza Marefat; VP LendingMr. Alireza Marefat was appointed VP for Lending in November 2016. His previous position was Director of Corporate Banking. Mr. Marefat holds an MBA from Multimedia University, Malaysia.
Mostafa Zarghami; VP Banking and Marketing Mr. Mostafa Zarghami was appointed VP for Banking and Marketing in November 2016. He had previously worked in similar executive positions in Saman and other banks.
Hosein Vaez Ghamsari; VP Financial and Planning Mr. Hosein Vaez Ghamsari was appointed VP for Financial and Planning in June 2016. He holds a master’s degree in financial management.
Aliakbar Namdari; VP Information TechnologyMr. Aliakbar Namdari was appointed VP for Information Technology in March 2017. He holds a master’s degree in computer engineering – hardware from Sharif University of Technology.
Senior Executive Team Division Heads
Full Name Position Highest Academic Qualification Year Joined Saman Bank
Ehsan Turkman Finance Master’s Degree 2016
Hamid Tahamtan Legal and Contracts Master’s Degree 2013
Seyed Morteza Hosseininejad Marketing and Product
DevelopmentMaster’s Degree 2003
Davoud Souri Saman Academy PhD 2014
Siamak ShahbazzadehKhiavi Inspection and Compliance Master’s Degree 2003
Reza ShirinGoharian Microcredit and SME Lending Master’s Degree 2001
Marzieh Azizi Quality and Improvement Bachelor’s Degree 2003
Khodarahm Ghasemian Yadegari Anti-Money-Laundering Master’s Degree 2016
Pooran Gilasi Saghez Corporate Secretary Master’s Degree 2009
Mohammad Hassan Dowlati Logistics Master’s Degree 2003
Loghman Rahmanpour Retail Banking Master’s Degree 2016
Ghassem Sarkhosh Investments Master’s Degree 1999
Fereshteh Zarrabieh Human Resources Master’s Degree 2003
Mohammad Farrokhipour Corporate Banking Bachelor’s Degree 2002
Maziar Fozouni Premium and Private Banking Bachelor’s Degree 2003
Mansoor MomeniPublic Relations and
Customer Care Bachelor’s Degree 2006
Abbas Mirza Nayyeri Electronic Banking Bachelor’s Degree 2007
Hasan Dehghanizadeh International Banking Bachelor’s Degree 2006
Independent Audit
Saman Bank shareholders always utilize the services of reputable, respected chartered accountants trusted by the Central Bank of Iran as independent auditors. Senior management fully appreciates the crucial role that these professionals play in ensuring the credibility of Saman’s reputation and the good standing of its operations.
The bank’s Audit Committee works hard to increase the reach and effectiveness of independent auditors, and it ensures that the bank’s financial statements present a fair and accurate picture of its performance.In 2016/17, Saman Bank’s shareholders selected the chartered accountancy practice Azmoon Pardaz Iran Mashhood as its independent auditor.
Azmoon Pardaz Iran Mashhood is one of the leading professional auditing firms specializing in banking and insurance and is recognized by the Tehran Stock Exchange and the Central Bank of Iran. The practice provides professional auditing and advisory services in assurance, investment and internal audit.
36 37Annual Report
2016/17 2015/16 2014/15
Members of the Board of Directors 4 4 5
Senior Advisors and Inspectors 23 18 16
Executive Directors 27 27 27
Deputy Executive Directors 11 12 12
Division Heads 25 28 29
Deputy Division Heads 22 31 40
Unit Managers 95 94 199
Experts 408 379 438
Regional Managers 10 10 10
Branch Managers 146 143 147
Branch Deputy Managers 184 186 191
Bank Clerks 1101 1178 1033
Administration Staff 354 360 367
Total Personnel and the Members of the Board of Directors 2410 2479 2514
PhD Master’s Bachelor’s Associate Diploma & Lower Subtotal Total
2016/17
StaffFemale 0 109 130 13 252
784 Male 5 152 200 175 532
LineFemale 1 150 371 12 534
1622 Male 1 202 772 113 1088
7 613 1473 313 2406 2406
2015/16
StaffFemale 1 100 147 13 261
754 Male 5 122 207 159 493
LineFemale 1 129 412 14 556
1721 Male 1 177 824 163 1165
8 528 1590 349 2475 2475
2014/15
StaffFemale 0 98 163 17 278
843 Male 4 111 229 221 565
LineFemale 1 107 419 14 541
1666 Male 1 129 838 157 1125
6 445 1649 409 2509 2509
The bank’s human capital structure during the past three years is presented in the following table:
The following table shows the structure of organizational positions during the past three years:
Human Capital
Training and Development
The key training courses offered during 2016/17 were as follows:
• RB1
• ICA
• MIM2
• AML
• Virtual training courses
Title of the Course Number of Participants , 2016/17 Man-hour, 2016/17
Professional non-banking courses 451 8440
Professional banking courses 2026 37699
Behavioral courses 1025 14032
General courses 1135 20685
General English 160 4770
Virtual training courses 2924 26808
Total 7721 112434
Major accomplishments in the Human Capital Department in 2016/17:
• Periodical evaluation of all personnel;
• Full establishment of workplace organization system in the bank;
• Implementation of human resources software;
• Provision and review of postal ID for staff units based on the current organizational chart;
• Issue of multi-purpose personnel cards;
• Improvement in the renewal procedure for employment contracts;
• Introduction of and conversion to electronic signature and electronic communications.
38 39Annual Report
Major activities in the area of social responsibility
• Donations to the Child Foundation;
• Donations to the Arasteh Charity;
• Donations to The Chain of Hope (La Chaîne de L’Espoir);
• Donations to the Behnam Daheshpour Charity;
• Construction of a four-room school in Bahu Kalat, Sistan and Baluchestan;
• Construction of a one-room school in Cheshmeh Zoleykha village, Delfan City, Lorestan Province;
• Nikcharge Campaign;
• Sponsor of new work by renowned composer Loris Tjeknavorian;
• Sponsor of Azim Gheychisaz, the acclaimed Iranian climber, for his latest ascent (8000-meter summit in the Himalayas);
• 24 hourse banking services offered to pilgrims travelling to Iraq during Arba’een rituals for 20 days;
• Sponsor of a pioneering online concert information platform;
• Sponsor of Euromoney Conference;
• Investment in Ajabshir Steel Factory, which employs more than 300 local steel workers.
Organizational C
hart-Level 1
Organisational Structure
Corporate Secretary
Audit Comm
ittee
Hum
an Capital Developm
ent and
Compensation H
igh Comm
ittee
Public Relations &
Customer Care D
ivision
Executive Board
Risk Departm
ent
Internal Audit Division
Strategy and Budgeting
Comm
ittee
Risk Comm
itte
Hum
an Capital Division
AML D
ivision
Secretariat of Passive defense
Executive Comm
ittees:
• Assets and Debts
• Corporate Credit• International B
anking• D
isciplinary• Passive D
efense• SM
E Credit • Trading
Retail Banking
Division
Finance Division
Legal & Contracts
Support Division
NPLs &
Debt
Collection
Procurements
Division
Premier &
Private B
anking
e-Banking D
ivision Investm
ents &Subsidiaries D
ivisionForeclosed Assets
Managem
ent
Marketing&
ProductD
evelopment D
ivision
Board of D
irectors
CEO
Deputy CEO
VP Finance & Planning
VP Banking &
Marketing
VP LegalVP Procurem
entVP Credit
VP ICTVP International
VP Supervision
ICT Division
Corporate Banking
Division
Software Solutions
Remedial Services
Departm
ent
International Banking
Division
Compliance D
ivision
Information Security
Process Managem
ent&
Quality ControlD
ivision
SME D
ivision
Project FinanceD
epartment
International Business
Developm
ent Division
Security Departm
ent
40 41Annual Report
Risk management is the process of identifying, assessing and controlling potential risks related to the nature of banking activities. The purpose of risk management is to reasonably ensure the fulfillment of objectives based on the bank’s approved strategies. In line with risk objectives, the department measures risk indexes and tolerance levels, and defines the risk appetite as a major element in corporate governance and the bank’s strategy.
The key activities to ensure effective risk management are as follows:
Risk Committee MeetingsThe Risk Committee is a strategic committee that reports to the Board of Directors. The outcomes of its findings are presented to the board in the form of supervisory and advice reports. The Risk Committee was established to comply with the internal control structure required by the Central Bank of Iran and to ensure that appropriate and sufficient managerial policies and procedures are in place to monitor and control various risks involved in banking operations. The Risk Commit-tee supervises the enforcement of risk policies approved by the Committee and the board and places special emphasis on the protection and enhancement of the bank’s reputation, as well as attaining optimal capital adequacy ratio.
During 2016/17, the Risk Committee undertook the following initiatives:
• Review of risk-control strategies
• Study of reports received on risk management
• Study of risk-control-related proposals
In order to execute these initiatives, the Risk Committee convened eight meetings, the outcomes of which are summarized below:
• The committee decided that a plan for precautionary measures should be developed to confront liquidity shortage in critical conditions;
• Necessary measures were approved to improve the bank’s capital adequacy structure in view of capital increase and the collateral system;
• The list of duties and specifications of the Risk Committee was assessed against the bylaws approved by the Central Bank of Iran to ensure full compliance;
• Approval was granted for the creation of subordinate workgroups on credit risk and operational risk;
• The list of duties of the Resources and Expenditures Committee was analyzed;
• The committee supervised the risk appetite of the bank’s operations.
Risk Analysis
Meetings of the Subordinate Workgroups on Credit Risk and Operational RiskThe Subordinate Workgroups on Credit Risk and Operational Risk are specialist and executive workgroups created in 2016 to provide expert reports and improvement proposals to the Risk Committee. They are responsible for monitoring operational risk and credit risk management through risk detection, measurement and control.
Major Activities of the Risk, Statistics and Banking Information Unit with regard to Risk ManagementThe Risk, Statistics and Banking Information Unit carries out numerous detection and measurement activities to facilitate risk assessment for the Risk Committee. In so doing, it follows the guidelines of the Central Bank of Iran and the recommendations of the Basel Committee for the management of credit, liquidity, operational and market risks. The unit’s main activities are as follows:
• Gathering relevant statistics and information via various methods including market research, software solutions, rules and regulations, and past records, to determine the risk-evaluation model;
• Identifying different types of business-related risks, effective variables and items susceptible to different types of risks;
• Designing and updating risk-evaluation models with the use of information and statistics, effective variables, guidelines of the Basel Committee and the Central Bank of Iran;
• Identifying, determining and updating evaluation indicators for different types of risks including market risk, operational risk, liquidity risk, and credit risk;
• Providing analytical reports regarding different types of risks including market risk, operational risk, liquidity risk, and credit risk;
• Calculating the capital required to cover credit, market, and operational risks, and preparing necessary reports;
• Analyzing credit concentration risks based on economic sector, geographical location, maturity, market type, type of lending agreement, and so on, in order to verify compliance with credit limits set internally and by the CBI;
• Preparing reports on entry and exit surveys, economic cost of money, age analysis of deposits, age analysis of receivables and loans and currency market risk in order to determine currency risk, liquidity gap risk and other types of risks;
• Liquidity surplus/shortfall forecasts on major currencies and reporting on foreign currency liquidity gap;
• Updating and standardizing collateral-related information throughout the bank;
• Disclosing risk-management information based on the requirements of the Central Bank of Iran and as per clause 63 of the financial statements template of the CBI.
Capital adequacyIn compliance with the Basel I Accord, and in order to protect depositors and ensure the integrity of the country’s financial systems, the Central Bank of Iran requires that all banks operating under its regulations have a minimum capital adequacy ratio of eight percent.
Saman Bank’s Basel I capital adequacy ratio was calculated as 7% for 2016/17.
42 43Annual Report
• Obtained ISO certification for its customer complaint procedure by TUV NORD IRAN Company in 2016/17;
• Progressed five steps – currently in 24' place among the 100 superior companies of Iran;
• Capital Intelligence promoted Saman Bank’s credit rating (in the second review term, CI confirmed credit score B in financial strength rating (FSR) and currency transactions as in the first review term; nevertheless, it promoted the overall credit rating of the bank by one level);
• Iranian National Quality Prize awarded to Saman by National Iranian Standard Institute;
• Voted first-choice bank for retail banking and awarded the title of “My Favorite Bank” at the “My Favorite Bank” annual festival.
Major Accolades and Achievements of Saman Bank and Saman Financial Group in 2016/17
CapitalBank’s
Ownership (direct or indirect)
Net Profit (Loss) in2016/17
Net Profit (Loss) in 2015/16
IRR billion IRR billion IRR billion
Saman Exchange Co. 219 96.46 229 170
Saman Electronic Payment Co. 1800 43.04 811 314
Hafez Saman Iranian Credit Scoring Co. 24 99.15 42 25
Saman Satellite Communication Co. 200 61.85 71 50
Saman Processing Co. 100 100 14 13
Saman Brokerage Co. 50 64 9 4
Tondar Noor Co. 3 100 1 4
Atieh Andishan Sepehr Shargh 0,01 100 22 3
Atieh Andishan Sepehr Mehr 0,01 100 1 30
Atieh Andishan Sepehr Shargh
Service Development Co.0,01 100 (90) 0
Kardan Finance Co. 2000 33.33 595 530
Adonis Co. 300 24.19 39 79
Saman Insurance Co. 618 14.84 685 278
Aftab Tejarat Saman Co. 0.1 15 10 6
Saman Financial Group
Companies in Saman Financial Group
44 45Annual Report
Plans and Projects for 2017/18
Our major plans and approaches for 2017/18 are as follows:
1- To amend and improve the assets structure through:
• Debt collection
• Sale of surplus assets and unwanted properties
• Development of new loan products for microcredit and SME lending
2- To amend and improve the debt structure (deposits and shareholders’ equity) by:
• Increasing the share of current and low-cost deposits
• Reducing the cost price of term deposits
• Increasing Bank’s capital
3- To boost channel productivity and human resources productivity, and to reduce expenses by:
• Budgeting items of current expenditures
• Monitoring the capital budget with an emphasis on return
• Improving the productivity of the ATM network
• Increasing branch operations’ profitability
• Using integrated software for business operations and support
4- To continue to provide foreign-currency operations and improve fee-earning services such as::
• Issuing letters of guarantee
•Opening letters of credit, drafts and money orders
• Sale of insurance products
• Increasing foreign currency transactions
5- To design and develop five or more new products for deposit, lending and fee-earning services
6- The provisions of Article 129 were enforced in view of the explanatory notes on financial statements
7- Profit division
Based on the approval dated June 24, 2017 by the Tehran Stock Exchange Admission Board, Saman Electronic Payments Co. has been admitted to the TSE. Since December 5, 2017, Saman Electronic Payments Co. is listed as the 520' company admitted to the TSE in the Computing Section, IT & Software Group, Industry Code 722008, symbol SEP.
The profit forecast for 2016/17 is IRR billion 1,470 and profit per share is identified to be IRR 820. The company is evaluated at IRR billion 20,000 and the initial shares will be offered at the end of December.
Finacial Report
46 47Financial Report
Independent Auditor’s and Legal Inspector’s Report
To Annual ordinary General Meeting of Shareholders Saman Bank (Public Joint Stock Company)Report on the Financial Statements
Introduction
1- Our Firm has audited the consolidated financial statements of Saman Group & Bank (Public joint stock Company) including the balance sheets as at March 20,2017 and statement of investment deposit performance, Profit and Loss Account, statement of comprehensive income, statement of changes in shareholders’ equity as well as the Cash flow Statement for the fiscal year then ended together with the Explanatory Notes 1 to 63 hereto attached.
Responsibility of the Board of directors for financial statements
2- The Board of directors of the Bank shall be responsible for preparing the financial statements according to accounting standards. Such responsibility includes design, implementation and maintenance of internal controls for setting up these statements in such a manner to ensure that there is no significant misstatement due to fraud or error.
Responsibility of auditor and legal inspector
3- Our responsibility is to express an opinion on these financial statements based on our conducted audit in accordance with Auditing Standards.
Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depends on the auditor’s judgment, including the assessment of the risks of material misstatement of financial statements, whether due to fraud or error.
In making those risk assessments, internal control relevant to company’s preparation of the financial statements in order to design audit procedures that are appropriate in circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s financial statements, is considered. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of accounting estimates made by directors, as well as evaluating the presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to express opinion on the financial statements.
Our responsibility as the legal inspector, is to report on non-compliance with legal requirements as per the amended commercial code of Iran and Bank’s Articles of Association and legal regulatory requirements of banking activities to the shareholders ordinary General Meeting.
Basis of qualified opinion
4- Explanations on financial facilities and dues from persons and the method of calculation of interest and related charges together with anticipated provisions according to I.R.I. Central Banks’s circulars are explained in Notes 8-4 to 8-7 and 11 of the financial statements.
Since the complete information on procedures especially regarding the collection of mentioned receivables are not made accessible to this firm, it has not been possible for us to carry out the normal reviews and investigations on determining the minimum necessary provision and also reflection of the effects of the same in the Accounts.
5- The situation regarding sale of part of collateralized properties and 15% of subsidiary company’s shares (Pardakht electronic Saman company) have been disclosed in notes 46 and 35-2 to the financial statements. Since recognition of the profit from the above mentioned operation have not been according to Accounting standards, it seems there are adjustments necessary to be done to the Accounts.
6- Presentation of investment deposit performance and statement of changes in equity as one of fundamental financial statements, which have been instructed by I.R.I. Central Bank directives, and also presentation of cash flow statement in three categories, have not been anticipated as mandatory by accounting standards.
7- Considering the content of note number 26 of financial statements, the Bank’s corporation tax for the years 1384 (2002) to 1393 (2011) have not yet been finalized, It is necessary for the sum of Rls. 1,238 billions tax differences for the mentioned years to be transferred to prior year adjustments and on the other hand the tax prepayment balance of Rls. 924 Billions to be removed from heading “other assets” and tax payable of Rls. 314 Billions to be reflected in the heading of corporation tax provision.
8- Under the heading of “other Accounts Receivable” (Note 15-2 to the financial statements) an amount of Rls. 1,700 Billions and Rls. 750 Billions stated to be “debtors for sale of assets” related to sale of property in “zafar” and “khodro sazi Arg Diesel Bam factory” in the prior years for which there is no adequate evidence on the collectability of these. Hence it has not been possible to determine the possible effect of these on the financial statements.
Qualified opinion
9- Our firm believes that, except for the effects of items stated in above clauses 4 to 7 and possible effects of items mentioned in clause 8, the financial position of Saman Group & Bank (Public joint stock company) as at March 19, 2017 and their financial performance and cash flows for the fiscal year then ended are true and fair, according to accounting standards, from all material aspects.
Emphasis of Matters
(Shareholders' attention is drawn on clauses 10 to 11 below. Our opinions has not been qualified as a result of items 10 to11):
10- As explained under Note 10-3-2 to Financial Statements although procedures relating to collection of receivables from Banks Saderat Iran and Pasargad for the amounts of Rls. 3,226 and 937 Billions have take place, but there has been no concrete results.
11- As explained in Note 10-2 to the financial Statements, the amount of Rls. 5,464 Billions under the heading of dues from Central Bank of Iran relating to forward purchase of foreign currency subject of circular No. 60/1015 M dated 1392.09.16 has been accounted for in the intercompany Accounts of that Bank from this amount a figure of USD 363,241,619 is confirmed by Central Bank of Iran and its’ remaining Balance together with the excess drawing of Rls.
2,833 Billions, being subject of Note 9-4-2 to the financial Statements (known as overnight drawings) and the related contingent liabilities determination is subject to the special audit result and confirmation by Central Bank of Iran. Additionally, as explained in Note 22-3 to the financial statements, settlement of an amount of Rls. 2,789 Billions due to the Central Bank of Iran, which has been taken out of customers’ Accounts, being the difference between foreign currency rates mobadelei and official rates is subject to the result of the same special audit.Despite preparation and presentation of the said special report, the method of settling these balances are not announced.
Other Matters Paragraphs
12- Financial statements of the Bank for the year ended 19.03.2016 was examined by another audit firm (IACPA member firm) and the related audit report with qualifications was issued on 25th June 2016.
Report on other legal responsibilities
Report on other responsibilities of Legal Inspector
13- Noncompliance matters with some of the monetary and banking laws and regulations together with related circulars over the banking operations and mandatory bylaws for the banking system for the period under review by our firm have been submitted to the Central Bank of Iran under a separate letter by this firm.
48 49Financial Report
Amended Commercial code
Articles of Association clause
Registration of ordinary general meeting minutes in company Registrar 106 45
Election of Board of directors’ member after termination of previous board 107 65
Completion of Board of Directors’ members in number 107 67 & 66
Preparation of Board of directors’ minutes 123 77
Financial statements’ preparation to the Auditors & legal inspector in 3 months after the year end - 105
Distribution of 10% of profit for the year 1394 (2016) 90 110
Payment of dividends within 4 months from approval date (previous year’s profits - 111
Compliance with ownership of Bank’s shares ceiling - 7
Compliance with capital Adequacy ratio - 116 & 115
Holding Annual General Meeting within the period stipulated in the Articles of Association 138 & 89 31
15- Transactions mentioned under Note 61 to Financial Statements, including all the transactions performed during the fiscal year subject to Art. 129 of Partial Amendment of Commercial Code, are reported by the board of directors to our Firm and verified. Such transactions are performed in compliance with the provisions of the said article on obtaining of the board's consent and absence of the director concerned in voting, and our firm believes that such transactions, having special conditions, should be brought to the A. G M. of shareholders for proper decisions.
16- We have examined the report of the board on the operations and general situation of the Bank, provided under Art. 232 of Partial Amendment of Commercial Code, to be presented to the general meeting of shareholders and in view of such examination, we can confirm that there is no significant case of inconsistency between the information therein and the documents and instruments provided by the board.
Report on other legal and regulatory responsibilities of Auditor
17- The Annual membership fee for deposits guarantee fund have been calculated and manner of Receipt of such membership based on the Articles of Amended bylaws for such deposits (subject of circular number 68469/96 dated 7th khordad 1396 in relation to Directive number 22196/t53725 h dated 30th Ordibehesht 1396 of council of ministers) and except for Article 10 of the above mentioned bylaws in respect of the delay in payment of subscriptions for the years 1393 and 1394, no other cases have been observed.
18- Following Articles of executory bylaws for disclosure of information in respect of listed companies in the Securities & Exchange organization have not been complied with as follows:
• clauses 1 & 2 of Article 7 regarding timely issue of Audited annual financial statements of the holding company and the group consolidated accounts.
• Submission of Board of Directors’ Report & Auditor’s Report on it within at least 10 days before ordinary general meeting and maximum 4 months from the year end of company.
• Article 10 in relation to submission of minutes for ordinary & extra ordinary meeting within maximum of 10 days, to companies Registrar.
• Clause 3 of Article 7 regarding submission of unaudited interim financial statements for period of 3, 6 and 9 maximum 30 days from end of 3 months periods.
• Clause 4 of Article 7 regarding submission of 6 monthly audited financial statements maximum 75 days of end of 6 monthly financial period.
• Article 8 regarding disclosure of Advertisement for attending general meeting at least 10 days prior to the date of general meeting.
• Article 9 regarding immediate disclosure of general meeting decisions.
Azmoon Pardaz Iran mashhood Audit Firm
(IACPAs)
M. Babaei Rahni F. shahdadfard (871546) (800267)
Date: 27th August 2017
19- Regarding the Report on compliance with Internal Control Requirements related to financial reporting regulations as related to the implementation and assessment of internal controls as provided under the checklist of Stock Exchange organization, the Bank's internal audit reports on assessment of the internal audit established therein and their efficiency for reasonably ensuring of compliance with accounting standards in preparation of financial statements are examined by our firm and there is no significant case of ineffective implementations of such controls.
20- Regarding Non Compliance with “Administrative Health promotion & Anti-corruption Law” the following should be reported:
• The Article 17 “p” of the executory bylaw regarding preparation of the list of excess properties and it submission to the Central Bank of Iran after auditor’s confirmation is not complied with, hence it has not been possible to carry out clauses “A” & “B” of Article 16 compliance check.
• Article 3 of the executory bylaw clause “B” item 1 of clause “t” of Article 17 in respect of submission of list of Repossessed (confiscated) properties to the Central bank of Iran for 3 months intervals.
• Article of the executory bylaw, item 21 regarding opening of special Account if requested by the receiver of the loan facilities.
• Article 47 regarding agricultural loan facilities to the extent determined by the Central Bank.
21- The detailed calculation of the difference between final interest and on Account payment of interest on invested deposits as per disclosed methods of invested deposit, performance, in compliance with circular number 126331 dated 19.12.1387 and letter number 94/69383 dated 20.04.1394 of Central Bank of Iran have been reviewed by our firm. In this review no other noncompliance are observed except occasional extra interests paid over & above the approved rates.
22- In compliance with Article 33 of AML, Anti–money laundering by auditors, Bank has implemented the regulations, guidelines and intelligent information systems & check lists declared and auditing standards have been examined by our firm and except customer’s classification according to their risks.
14- Situation of noncompliance with the legal requirements provided under Partial Amendment of Commercial Code and Articles of association of the Bank is as follows:
50 51Financial Report
(Restated)
Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Assets
Cash 9 32,024,604 50,716,771
Due from banks and other credit institutions 10 9,676,029 12,833,651
Due from the government 0 0
Loans granted to and amounts due from governmental entities 0 0
Loans granted to and amounts due from non-governmental entities 11 127,532,285 126,691,865
Investments in shares and other securities 12 1,052,921 1,531,394
Long-term investments in affiliates 13 1,790,987 624,175
Due from subsidiaries and affiliates 14 587,333 82,198
Other accounts recievable 15 7,469,868 6,833,437
Orders and prepayments 16 30,494 40,809
Inventory (materials and goods) 17 318,453 145,360
Tangible fixed assets 18 4,142,137 6,109,443
Intangible assets 19 4,296,269 4,128,134
Statutory deposits 20 23,035,684 21,131,325
Other assets 21 45,954,431 29,801,528
Total assets 257,911,495 260,670,090
Customers' obligations for LCs 54-1 4,321,019 5,201,012
Customers' obligations for LGs issued 54-2 5,056,859 6,938,318
Customers' other obligations 54-3 20,301,828 7,163,495
Managed funds and similar items 54-4 1,168,077 1,165,874
The accompanying notes are an integral part of these financial statements.
Group Consolidate Financial Statment
Saman Bank (Public Joint Stock Company)
Consolidated Balance sheet For the fiscal year ended March 20, 2017
The accompanying notes are an integral part of these financial statements.
(Restated)
Liabilities and shareholders' equity Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Liabilities Due to banks and other credit istitutions 22 5,750,470 27,672,186
Customers' deposits 23 17,106,563 21,806,467
Dividends payable 24 59,311 196,733
Advances received 25 7,847 41,979
Debt securities 0 0
Provision for income tax 26 115,879 171,440
Provisions and other liabilities 27 11,081,141 6,610,288
Provisions for employees' termination and pension benefits 28 563,793 466,334
Total liabilities before investment depositors' equity 34,685,004 56,965,427
Investment depositors' equity 29 213,659,740 193,508,582
Total liabilities 248,344,744 250,474,009
Shareholders' equity
Share capital 30 8,000,000 8,000,000
Ongoing capital increase 0 0
Shares premium reserve 0 0
Parent company's shares held by subsidiaries (10) (1,685)
Legal reserve 31 1,577,976 1,595,889
Other reserves 0 0
Assets revaluation reserve 32 1,507,147 675
Difference in foreign exchange rates 0 0
Retained earnings (1,703,324) 56,816
Treasury shares 0 0
Parent company total shareholders' equity 9,381,789 9,651,695
Minority interest 33 184,962 544,386
Total liabilities and shareholders' equity 257,911,495 260,670,090
Bank's obligations for LCs 54-1 4,321,019 5,201,012
Bank's obligations for LGs issued 54-2 5,056,859 6,938,318
Bank's other obligations 54-3 20,301,828 7,163,495
Managed funds and similar items 54-4 1,168,077 1,165,874
52 53Financial Report
Conolidate Statement of profit & Loss of the parent company For the fiscal year ended March 20, 2017
Consolidated Comprehensive statement of profit & Loss For the fiscal year ended March 20, 2017
(Restated)
Note 2017 2016
Rls (m) Rls (m)
Income from loans granted and deposits in other banks and debt securituies 34 24,223,702 31,084,107
Interest expenses on deposits 40 (31,886,274) (31,745,950)
Net income from loan interests and deposits in other banks (7,662,572) (661,843)
Fee and commission incomes 41 1,343,367 1,115,156
Fee and commission expenses 42 (1,661,114) (1,102,536)
Net income from fees and commissions (317,747) 12,620
Income from sales and services rendered 43 57,931,416 41,119,595
Cost of sales and services rendered 44 (56,688,318) (39,901,118)
1,243,098 1,218,477
Net profit (loss) from investments 35 2,228,036 230,773
Net profit (loss) from foreign currency exchanges and transactions 45 1,374,995 1,297,371
Other operating incomes 0 0
Total operating incomes (3,134,190) 2,097,398
Net other incomes and expenses 46 6,148,166 3,422,912
Administrative and general expenses 47 (3,894,230) (3,562,222)
Expenses for doubtful debts 48 (304,240) (807,669)
Financial expenses 49 (111,316) (257,583)
Deprecciation/amortization expenses 50 (473,825) (451,318)
"Profit before calculating group share from incomes earned by affiliates" (1,769,635) 441,518
Group share from incomes earned by affiliates 14 183,409 174,597
Profit (loss) before income tax (1,586,226) 616,115
Income return tax 26 (247,397) (166,053)
Net profit (loss) (1,833,623) 450,062
Minority interest from net profit 48,499 133,611
Earnings per share (EPS) (Rls.)
Basic earnings per share (Rls.) 56-1 (235) 42
Diluled earnings per share (Rls.) 56-2 (235) 40
Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Net Group Profit (Loss) (1,882,116) 316,458
Assets revaluation reserve 32 1,507,147 675
Difference in exchange rates for offshore transactions 0 0
Comprehensive income for fiscal year (374,969) 317,133
Prior years' adjustments 51 34 (849,856)
Consolidated adjustments 151,016 0
Comprehensive income recognized from reporting date of previous fiscal year (223,919) (532,723)
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
2016
-201
7
Not
eCa
pita
l O
ngoi
ng c
apita
lin
crea
se
Sha
res
pre
miu
mre
serv
e
Pare
nt c
ompa
ny's
shar
es h
eld
by su
bsid
iari
es
Leg
alre
serv
e O
ther
rese
rves
Ass
ets
rev
alua
tion
rese
rve
Diff
eren
ce in
fore
ign
exc
hang
era
tes
Ret
aine
dea
rnin
gs T
reas
ury
shar
es
Tot
al s
hare
hole
rs'
equi
ty
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)
Bal
ance
as
at M
arch
21,
201
6 8
,000
,000
0
0(1
,685
) 1
,595
,889
0 6
75 0
5
6,78
2 0
9
,651
,661
Net
pro
fit 0
0 0
0 0
0 0
0(1
,882
,115
) 0
(1,8
82,1
15)
Pri
or y
ears
' adj
ustm
ents
51 0
0 0
0 0
0 0
0 3
4 0
34
Con
solid
ated
adj
ustm
ents
0 0
0 0
(46,
954)
0 0
0 1
51,0
16 0
104
,062
Oth
er c
ompr
ehen
sive
inco
mes
(los
ses)
aft
er ta
xde
duct
ion
0 0
0 0
0 0
0 0
0 0
0
Asse
ts r
eval
uatio
n re
serv
e 0
0 0
0 0
0 1
,506
,472
0 0
0 1
,506
,472
Diff
eren
ce in
fore
ign
exch
ange
rat
es 0
0 0
0 0
0 0
0 0
0 0
Tax
for
othe
r co
mpr
ehen
sive
inco
mes
0 0
0 0
0 0
0 0
0 0
0
Tota
l oth
er c
ompr
ehen
sive
inco
mes
0 0
0 0
0 0
0 0
0 0
0
Tota
l com
preh
ensi
ve in
com
es 8
,000
,000
0
0(1
,685
) 1
,548
,935
0
1,5
07,1
47
0(1
,674
,283
) 0
9,3
80,1
14
Cap
ital
incr
ease
Incr
ease
in r
egis
tere
d ca
pita
l 0
0 0
0 0
0 0
0 0
0 0
Incr
ease
in u
nreg
iste
red
capi
tal
0 0
0 0
0 0
0 0
0 0
0
Pare
nt c
ompa
ny's
sha
res
held
by
subs
idia
ries
Pur
chas
e of
sha
res
0 0
0 0
0 0
0 0
0 0
0
Sale
of s
hare
s 0
0 0
1,6
75 0
0 0
0 0
0 1
,675
Trea
sury
sha
res
Pur
chas
e of
trea
sury
sha
res
0 0
0 0
0 0
0 0
0 0
0
Sale
of t
reas
ury
shar
es 0
0 0
0 0
0 0
0 0
0 0
Dis
trib
utio
n an
d al
loca
tion
Lega
l res
erve
31 0
0 0
0 2
9,04
1 0
0 0
(29,
041)
0 0
Oth
er r
eser
ves
0 0
0 0
0 0
0 0
0 0
0
Div
iden
d pe
r sh
are
0 0
0 0
0 0
0 0
0 0
0
Appr
oved
div
iden
d32
0 0
0 0
0 0
0 0
0 0
0
0
0 0
1,6
75 2
9,04
1 0
0
0
(29,
041)
0
1,6
75
Bal
ance
as
at M
arch
20,
201
7 8
,000
,000
0 0
(10)
1,5
77,9
76 0
1,5
07,1
47 0
(1,7
03,3
24)
0 9
,381
,789
Co
nso
lid
ate
d s
tate
me
nt
of
ch
an
ge
s in
sh
are
ho
lde
rs' e
qu
ity F
or t
he
fis
ca
l ye
ar e
nd
ed
Ma
rch
20
, 2
01
7
54 55Financial Report
2015
-201
6
Not
eCa
pita
l O
ngoi
ng c
apita
lin
crea
se
Sha
res
pre
miu
mre
serv
e
Pare
nt c
ompa
ny's
shar
es h
eld
by su
bsid
iari
es
Leg
alre
serv
e O
ther
rese
rves
Ass
ets
rev
alua
tion
rese
rve
Diff
eren
ce in
fore
ign
exc
hang
era
tes
Ret
aine
dea
rnin
gs T
reas
ury
shar
es
Tot
al s
hare
hole
rs'
equi
ty
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)
Bal
ance
as
at M
arch
21,
201
5 6
,588
,000
317
,733
0(1
4,49
8) 1
,495
,671
0 6
75 0
2,3
30,1
87 0
10,
717,
768
Net
pro
fit 0
0 0
0 0
0 0
0 3
16,4
58 0
316
,458
Pri
or y
ears
' adj
ustm
ents
51 0
0 0
0 0
0 0
0(8
49,8
56)
0(8
49,8
56)
Con
solid
ated
adj
ustm
ents
0 0
0 0
0 0
0 0
0 0
0
Oth
er c
ompr
ehen
sive
inco
mes
(los
ses)
aft
erta
x de
duct
ion
0 0
0 0
0 0
0 0
0 0
0
Asse
ts r
eval
uatio
n re
serv
e 0
0 0
0 0
0 0
0 0
0 0
Diff
eren
ce in
fore
ign
exch
ange
rat
es 0
0 0
0 0
0 0
0 0
0 0
Tax
for o
ther
com
preh
ensi
ve in
com
es 0
00
0 0
00
0 0
0 0
Tota
l oth
er c
ompr
ehen
sive
inco
mes
0 0
0 0
0 0
0 0
0 0
0
Tota
l com
preh
ensi
ve in
com
es 6
,588
,000
3
17,7
33
0(1
4,49
8) 1
,495
,671
0 6
75 0
1,79
6,78
9 0
10,
184,
370
Capi
tal i
ncre
ase
Incr
ease
in r
egis
tere
d ca
pita
l 1
,412
,000
(317
,733
) 0
0 0
0 0
0(1
,000
,000
) 0
94,
267
Incr
ease
in u
nreg
iste
red
capi
tal
0 0
0 0
0 0
0 0
0 0
0
Pare
nt c
ompa
ny's
sha
res
held
by
subs
idia
ries
Pur
chas
e of
sha
res
0 0
0 0
0 0
0 0
0 0
0
Sale
of s
hare
s 0
0 0
12,
813
0 0
0 0
0 0
12,
813
Trea
sury
sha
res
Pur
chas
e of
trea
sury
sha
res
0 0
0 0
0 0
0 0
0 0
0
Sale
of t
reas
ury
shar
es 0
0 0
0 0
0 0
0 0
0 0
Dis
trib
utio
n an
d al
loca
tion
Lega
l res
erve
31 0
0 0
0 1
00,2
18 0
0 0
(100
,218
) 0
0
Oth
er r
eser
ves
0 0
0 0
0 0
0 0
(639
,755
) 0
(639
,755
)
Div
iden
d pe
r sh
are
0 0
0 0
0 0
0 0
0 0
0
Appr
oved
div
iden
d32
0 0
0 0
0 0
0 0
1,4
12,0
00(3
17,7
33)
0 1
2,81
3 1
00,2
18 0
0 0
(1,7
39,9
73)
0(5
32,6
75)
Bal
ance
as
at M
arch
20,
201
6 8
,000
,000
0 0
(1,6
85)
1
,595
,889
0 6
75 0
56,
816
0 9
,651
,695
Operating activities Note 2017 2016
Rls (m) Rls (m)
Cash received for
Interest and late payment penalty on loans granted 16,541,336 22,327,180
Interest on debt securities 203,303 0Fees and commissions 1,343,367 1,115,156Interest on deposits 1,649,989 1,873,776Profit from investments 2,411,446 405,370Other operating incomes 59,228,546 41,287,812Other incomes 620,299 542,661
Cash payment for 0 0
Interest on deposits (31,886,274) (31,745,950)Fees and commissions (1,661,114) (1,102,536)Other operating expenses (60,753,909) (43,627,122)Financial expenses (111,316) (257,583)Income tax (678,608) (664,585)Net cash outflow from operating activities befor changes in assets (13,092,935) (9,845,821)
Cash flows from changes in operating assets and liabilitiesNet increase (decrease) in liabilitiesDue to banks and other credit institutions (21,921,716) 297,329Customers' deposits (4,699,905) 154,730Debt securities 0 (1,000,000)Operating portion of provisions and other liabilities 4,510,185 (1,144,094)Investment depositors' equity 20,151,158 34,596,373
Net (increase) decrease in assets 0 0 Due from banks and other cerdit institutions 3,157,621 (883,585)Principal amounts due from the government 0 0Principal loans granted to and amounts due from governmental entities 0 0Principal loans granted to and amounts due from non-governmental entities 4,988,652 (2,065,541)Investment in shares and other securities (688,340) (579,591)Due from subsidiaries and affiliates (505,135) 56,778Other accounts receivable (636,431) (3,840,899)Statutory reserve (1,904,360) (1,619,062)Operating portion of other assets (10,804,309) (4,078,881)Cash flows from changes in assets and operating liabilities (8,352,580) 19,893,557Net cash inflow (outflow) from operating activities (21,445,515) 10,047,736
Investing activitiesFunds paid for acquisition of tangible fixed assets (1,415,282) (1,419,499)Proceeds received from sale of tangible fixed assets 3,157,432 6,560Funds paid for acquisition of intangible assets (221,058) (325,894)Funds paid for acquisition of intangible assets 1,291,811 0Funds paid for acquisition of non-operating real estates 0 0Proceeds received for acquisition of non-operating real-estates 0 0Net cash (outflow) from investing activities 2,812,903 (1,738,833)Net cash outflow before financing activities (18,632,612) 8,308,903
Financing activitiesCash from capital increase 0 94,270Treasury shares transactions 0 0Funds from shares premium 0 0Financial facilities received 66,825,000 27,655,000Repayment of principal financial facilities (66,825,000) (29,405,000)Dividends paid (137,419) (661,159)Net cash inflow (outflow) from financing activities (137,419) (2,316,889)Net cash increase (decrease) (18,770,031) 5,992,014Cash at the beginning of the year 50,716,771 43,595,603
Effects of changes in forex exchange rates 77,864 1,129,154
Cash at year end 32,024,604 50,716,771
Non-cash transactions 53 9,030,828 15,939,314
Consolidated statement of cash flows the fiscal year ended March 20, 2017(Restated)
The accompanying notes are an integral part of these financial statements.
56 57Financial Report
Saman Bank (Public Join Stock Company) Financial Statements
Balance sheet of the Parent Company For the fiscal year ended March 20, 2017
(Restated)
Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Assets
Cash 9 31,494,714 49,362,165
Due from banks and other credit institutions 10 9,676,029 12,833,651
Due from the government - 0 0
Loans granted to and amounts due from governmental entities - 0 0
Loans granted to and amounts due from non-governmental entities 11 127,750,201 126,987,987
Investments in shares and other securities 12 2,777,793 3,238,567
Due from subsidiaries and affiliates 14 3,578,946 1,030,522
Other accounts receivable 15 5,945,744 5,651,666
Tangible fixed assets 18 3,613,037 3,593,857
Intangible assets 19 4,301,189 4,119,563
Statutory deposit 20 23,035,684 21,131,325
Other assets 21 45,861,562 29,606,051
Total assets 258,034,899 257,555,354
Customers' obligations for LCs 54-1 4,321,019 5,220,610
Customers' obligations for LGs issued 54-2 5,129,944 7,079,288
Customers' other obligations 54-3 20,301,828 7,163,495
Managed funds and similar items 54-4 1,168,077 1,165,874
The accompanying notes are an integral part of these financial statements.
(Restated)
Liabilities and shareholders' equity Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Liabilities
Due to banks and other credit istitutions 22 5,475,289 27,042,210
Customers' deposits 23 17,098,373 21,885,077
Dividends payable 24 52,482 157,034
Debt securities 0 0
Provision for income tax 26 0 0
Provisions and other liabilities 27 8,813,301 4,268,653
Provisions for employees' termination and pension benefits 28 537,311 414,634
Total liabilities before investment depositors' equity 31,976,756 53,767,608
Investment depositors' equity 29 214,853,049 194,173,795
Total liabilities 246,829,805 247,941,403
Shareholders' equity
Share capital 30 8,000,000 8,000,000
Ongoing capital increase 0 0
Shares premium reserve 0 0
Legal reserve 31 1,536,568 1,523,868
Other reserves 0 0
Assets revaluation reserve 32 1,507,147 675
Difference in foreign exchange rates 0 0
Retained earnings 161,379 89,408
Treasury shares 0 0
Total shareholders' equity 11,205,094 9,613,951
Total liabilities and shareholders' equity 258,034,899 257,555,354
Bank's obligations for LCs 54-1 4,321,019 5,220,610
Bank's obligations for LGs issued 54-2 5,129,944 7,079,288
Bank's other obligations 54-3 20,301,828 7,163,495
Managed funds and similar items 54-4 1,168,077 1,165,874
The accompanying notes are an integral part of these financial statements.
58 59Financial Report
Statement of the investment deposits performance of parent company For the fiscal
year ended March 20, 2017 Statement of profit & lose of the parent company for the fiscal year ended March 20, 2017
Saman Bank (Public Joint Stock Company) Statement of profit & Loss of the parent company
Note 2017 2016
Rls (m) Rls (m)
Profit sharing incomes
Income from loans granted 34 21,806,820 28,160,995
Income from deposits and debt securities 34-2 1,586,430 1,524,322
Net profit (loss) from investments 35 5,029,559 598,793
Total profit-sharing incomes 28,422,809 30,284,110
Bank's share from profit-sharing incomes 36 - -
Depositors' share from profit-sharing incomes before fees 28,422,809 30,284,110
Deposits management fee 37 (3,910,522) (3,782,601)
Depositors' share from profit-sharing incomes 24,512,287 26,501,509
Interest on statutory deposit/investment deposits 36-3 215,922 196,005
Compensation of expenses related to depositors' free resource surplus to profit-sharing uses 38 6,801,974 3,797,639
Final interest accrued on investment deposits 31,530,183 30,495,153
Provisional interest paid on investment deposits 39 (31,547,401) (31,310,605)
Differential in interests payable (surplus of interest paid) to depositors (17,218) (815,452)
(Restated)
Note 2017 2016
Rls (m) Rls (m)
Income from loans granted and deposits in other banks and debt securities 34 24,258,896 31,190,333
Interest expenses on deposits 40 (31,947,915) (31,801,511)
Net income from loan interests and deposits in other banks (7,689,019) (611,178)
Fee and commission incomes 41 1,329,183 1,116,022
Fee and commission expenses 42 (1,843,131) (1,144,070)
Net incomes from fees and commissions (513,948) (28,048)
Net profit (loss) from investments 35 5,029,559 598,793
Net profit (loss) from foreign currency exchanges/transactions 45 1,384,565 1,295,870
Other operating incomes 0 0
Total operating incomes (1,788,843) 1,255,437
Net other incomes and expenses 46 6,206,557 3,379,801
Administrative and general expenses 47 (3,586,051) (3,284,674)
Expenses for doubtful debts 48 (300,000) (765,960)
Financial expenses 49 (1,788) (59,192)
Deprecciation/amortization expenses 50 (445,209) (422,667)
Profit (loss) before income tax 84,666 102,745
Income return tax 26 0 0
Net profit (loss) 84,666 102,745
Earning per shares (EPS) - (Rls.)
Basic earnings per share (Rls.) 56-1 11 14
Diluled earnings per share (Rls.) 56-2 11 13
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
Note March 20, 2017 March 19, 2016
Rls (m) Rls (m)
Net profit (loss) 84,666 102,745
Assets revaluation reserve 32 1,507,147 675
Difference in exchange rates for offshore transactions 0 0
Comprehensive income for fiscal year 1,591,813 103,420
Prior years' adjustments 51 0 (744,994)
Comprehensive income recognized from the reporting date of previous fiscal year 1,591,813 (641,574)
The accompanying notes are an integral part of these financial statements.
60 61Financial Report
sta
tem
en
t o
f ch
an
ge
s in
sh
are
ho
lde
rs' e
qu
ity F
or P
are
nt
Co
mp
an
y F
or t
he
fis
ca
l ye
ar e
nd
ed
Ma
rch
20
, 2
01
7
2016
- 20
17
Not
eCa
pita
l O
ngoi
ng c
apita
lin
crea
se
Sha
res
pre
miu
mre
serv
e
Leg
alre
serv
e O
ther
rese
rves
Ass
ets
rev
alua
tion
rese
rve
Diff
eren
ce in
fore
ign
exc
hang
era
tes
Ret
aine
dea
rnin
gs T
reas
ury
shar
es
Tot
al s
hare
hold
ers'
equi
ty
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)
Bal
ance
as
at M
arch
19,
201
6 8
,000
,000
0
0 1
,523
,868
0
675
0 8
9,40
8
0 9
,613
,951
Net
pro
fit 0
0 0
0 0
0 0
84,
671
0
84,
671
Pri
or y
ears
' adj
ustm
ents
51 0
0 0
0 0
0 0
0
0 0
Oth
er c
ompr
ehen
sive
inco
mes
(los
ses)
aft
er ta
x de
duct
ion
0 0
0 0
0 0
0 0
0
0
Asse
ts r
eval
uatio
n re
serv
e 0
0 0
0 0
1,5
06,4
72 0
0
0 1
,506
,472
Diff
eren
ce in
fore
ign
exch
ange
rat
es 0
0 0
0 0
0 0
0
0 0
Tax
for
othe
r co
mpr
ehen
sive
inco
mes
0 0
0 0
0 0
0 0
0
0
Tota
l oth
er c
ompr
ehen
sive
inco
mes
0 0
0 0
0 0
0 0
0
Tota
l com
preh
ensi
ve in
com
es 8
,000
,000
0 0
1,5
23,8
68 0
1,5
07,1
47 0
174
,079
0 1
1,20
5,09
4
Capi
tal i
ncre
ase
Incr
ease
in r
egis
tere
d ca
pita
l0
00
00
00
00
0
Incr
ease
in u
nreg
iste
red
capi
tal
00
00
00
00
00
Trea
sury
sha
res
Pur
chas
e of
trea
sury
sha
res
00
00
00
00
00
Sale
of t
reas
ury
shar
es0
00
00
00
00
0
Dis
trib
utio
n an
d al
loca
tion
Lega
l res
erve
310
00
12,
700
00
0(1
2,70
0)
00
Oth
er r
eser
ves
00
00
00
0 0
0
Div
iden
d pe
r sh
are
00
00
00
00
0
0
Appr
oved
div
iden
d33
00
00
00
00
0
0
0
00
12,
700
0
00
(1
2,70
0)0
0
Bal
ance
as
at M
arch
20,
201
7 8
,000
,000
00
1,5
36,5
680
1,5
07,1
470
161
,379
0 1
1,20
5,09
4
2015
- 20
16
Not
eCa
pita
l O
ngoi
ng c
apita
lin
crea
se
Sha
res
pre
miu
mre
serv
e
Leg
alre
serv
e O
ther
rese
rves
Ass
ets
rev
alua
tion
rese
rve
Diff
eren
ce in
fore
ign
exc
hang
era
tes
Ret
aine
dea
rnin
gs T
reas
ury
shar
es
Tot
al s
hare
hold
ers'
equi
ty
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)R
ls (
m)
Rls
(m
)
Bal
ance
as
at M
arch
20,
201
5 6
,588
,000
3
17,7
33
0 1
,448
,455
0
675
0
2,4
47,0
64
0
10,
801,
927
Net
pro
fit0
00
00
00
102
,751
0
102
,751
Pri
or y
ears
' adj
ustm
ents
510
00
00
00
(744
,994
)
0 (7
44,9
94)
Oth
er c
ompr
ehen
sive
inco
mes
(los
ses)
aft
er ta
x de
duct
ion
00
00
00
00
00
Asse
ts r
eval
uatio
n re
serv
e0
00
00
00
00
0
Diff
eren
ce in
fore
ign
exch
ange
rat
es0
00
00
00
00
0
Tax
for
othe
r co
mpr
ehen
sive
inco
mes
00
00
00
00
00
Tota
l oth
er c
ompr
ehen
sive
inco
mes
Tota
l com
preh
ensi
ve in
com
es 6
,588
,000
317
,733
0 1
,448
,455
0 6
75 0
1,8
04,8
21 1
0,15
9,68
4
Capi
tal i
ncre
ase
Incr
ease
in r
egis
tere
d ca
pita
l 1
,412
,000
(3
17,7
33)
0 0
0 0
0(1
,000
,000
)
0 9
4,26
7
Incr
ease
in u
nreg
iste
red
capi
tal
0 0
0 0
0 0
0 0
0
0
Trea
sury
sha
res
0
Pur
chas
e of
trea
sury
sha
res
0 0
0 0
0 0
0 0
0
0
Sale
of t
reas
ury
shar
es 0
0 0
0 0
0 0
0 0
0
Dis
trib
utio
n an
d al
loca
tion
0
Lega
l res
erve
31 0
0 0
75,
413
0 0
0(7
5,41
3)
0 0
Oth
er r
eser
ves
0 0
0 0
0 0
0 0
0
0
Div
iden
d pe
r sh
are
0 0
0 0
0 0
0 0
0
0
Appr
oved
div
iden
d33
0 0
0 0
0 0
0(6
40,0
00)
0
(640
,000
)
1,4
12,0
00(3
17,7
33)
0 7
5,41
3 0
0 0
(1,7
15,4
13)
0(5
45,7
33)
Bal
ance
as
at M
arch
19,
201
6 8
,000
,000
0 0
1,5
23,8
68 0
675
0 8
9,40
80
9,6
13,9
51
62 63Financial Report
Statement of cash flows for the parent company For the fiscal year ended March 20, 2017
(Restated)
Note 2017 2016
Rls (m) Rls (m)
Operating activitiesCash received forInterest and late payment penalty on loans granted 16,590,758 22,455,278Interest on debt securities 203,303 0Fees and commissions 1,329,183 1,116,022Interest on deposits 1,635,761 1,851,904Profit from investments 1,234,904 598,793Other operating incomes 1,288,353 168,217Other incomes 679,050 513,417Cash payment for 0 0Interest on deposits (31,947,915) (31,801,511)Fees and commissions (1,843,131) (935,878)Other operating expenses (3,763,374) (4,140,498)Financial expenses (1,788) (59,192)Income tax (609,043) (480,641)
Net cash outflow from operating activities befor changes in operating assets and liabilities (15,203,939) (10,714,089)
Cash flows from changes in operating assets and liabilitiesNet increase (decrease) in liabilitiesDue to banks and other credit institutions (21,566,922) 36,949Customers' deposits (4,786,705) 190,143Debt securities 0 (1,000,000)Operating portion of provisions and other liabilities 4,544,647 (1,433,353)Investment depositors' equity 20,679,253 34,494,860Net (increase) decrease in assets 0 0Due from banks and other cerdit institutions 3,024,216 (883,585)Principal amounts due from the government 0 0Principal loans granted to and amounts due from governmental entities 0 0Principal loans granted to and amounts due from non-governmental entities 5,066,859 (1,993,155)Investment in shares and other securities 4,255,428 (793,449)Due from subsidiaries and affiliates (2,548,425) 155,697Other accounts receivable 307,274 (5,015,532)Statutory reserve (1,904,359) (1,619,060)Operating portion of other assets (10,586,910) (3,326,342)Cash flows from changes in assets and operating liabilities (3,515,644) 18,813,173Net cash inflow (outflow) from operating activities (18,719,583) 8,099,084
Investing activitiesFunds paid for acquisition of tangible fixed assets (597,692) (597,563)Proceeds received from sale of tangible fixed assets 401,374 3,137Funds paid for acquisition of non-operating real estates 0 0Proceeds received for acquisition of non-operating real-estates 0 0Funds paid for acquisition of intangible assets (235,024) (321,755)Funds paid for sale of intangible assets 1,291,811 0Net cash (outflow) from investing activities 860,469 (916,181)Net cash outflow before financing activities (17,859,114) 7,182,903
Financing activities
Cash from capital increase 0 94,270Treasury shares transactions 0 0Funds from shares premium 0 0Financial facilities received 66,825,000 27,655,000Repayment of principal financial facilities (66,825,000) (29,405,000)Dividends paid (104,549) (668,775)Net cash inflow (outflow) from financing activities (104,549) (2,324,505)Net cash increase (decrease) (17,963,633) 4,858,398Cash at the beginning of the year 49,362,165 43,376,114 Effects of changes in forex exchange rates 96,212 1,127,653Cash at year end 31,494,714 49,362,165
Non-cash transactions 53 9,030,828 15,939,314
The accompanying notes are an integral part of these financial statements.
1-1- Background
By virtue of the license No. H/1745 of July 24, 1999 granted by the Central Bank of I. R. of Iran, Saman Bank was registered with Tehran Department of Companies and Non-Commercial Entities Registration under No. 154444 on September 1, 2009 and was listed with Tehran Stock Exchange/Iran Farabourse on November 16, 2011 thus, the Bank has been put on the official list of prices which prevail on Tehran Stock Exchange/Iran Farabourse since June 6, 2012. The Bank is headquartered in Tehran, of No. 1543, Tarkeshdouz St. , Parkway Intersection, Vali-asr Ave., Tehran, Iran. The Bank’s Economic Code is 4111-1166-8595.
1-2- Bank’s main activities
The Bank has been licensed with the main objectives of performing authorized banking operations and activities (operations and transactions which are not prohibited for banks under the prevalent rules) under article 3 of the Articles of Association/Constitution and in accordance with the regulation No. 92/377538 of March 13, 2014 as approved by the Central Bank of I. R. of Iran. By extension, the bank’s main activities include: open various accounts such as savings accounts, free-interest deposit accounts, short-term or long-term investment deposit accounts; issue various banking credit cards or other authorized cards and other similar accounts; receive facilities and credit lines; grant loans in the form of applicable contracts and agreements; make fund transfers; conduct all transactions or foreign exchange transfers/money orders; open letters of credit and carry out all related affairs; issue banking letters of guarantee and certificates of deposit; trade (buy and sell) participation bonds and other securities; conduct all operations related to purchase and sale of shares; safe custody services; carry out transactions in gold and silver; act as a broker or agent for participation bonds and for interbank operations and other credit institutions; provide insurance coverage for banking affairs; cash management for customers; open branches and expand the banking network inside and ouside the country; to conduct and carry out all operations and activities in line with the objectives set and defined for the bank in the context of the prevalent rules and regulations...
1-3- Number of Branches
The number of branches during the year is listed below
1-4- Employment status
The number of bank’s employees (headcount) during the fiscal year was as follows:
2017 2016
Year end Average Year end Average
Branch Branch Branch Branch
Branches in Tehran province 84 84 84 84
Branches in other provinces 50 52 54 55
Branches in free zones 3 3 3 3
Overseas branches 0 0 0 0
137 139 141 142
Group Parent Company
2017 2016 2017 2016
Year end Average Year end Average
No. of Employees
No. of Employees
No. of Employees
No. of Employees
No. of Employees
No. of Employees
Central headquarters and district head offices 1478 1,408 784 754 754 794
Branches in Tehran Province 1008 1,128 1008 1,026 1,064 1,032
Branches in other provinces 581 1,008 581 598 624 626
Branches in free zones 33 37 33 33 33 34
Overseas branches 0 0 0 0 0 0
3,100 3,581 2,406 2,411 2,475 2,486
• Average means, the monthly average of the reporting period.
• Average means, the monthly average of the reporting period.
1- Introduction of the Bank
Explanatory Notes
64 65Financial Report
2- Basis of preparing financial statements
The existing financial statements have been prepared on the basis of accounting standards and in accordance with applicable rules and regulations of the Central Bank of I. R. Iran.
3- Basis of consolidation
3-1- The bank consolidated financial statements aggregate the assets and liabilities of the bank and of the subsidiaries qualifying for consolidation upon elimination of inter-group transactions and balances as well as the unrealized profit and loss from intergroup transactions. The list of group companies and their activities has been described in Note 14.2.3.
3-2- As to the acquisition of subsidiaries during the given period, the results of their operations are consolidated as of the date they are effectively controlled by the bank. As regards the subsidiaries transferred to the bank, the results of their operations are consolidated until the date of their possession.
3-3- The bank shares acquired by the subsidiaries are recorded at cost price in their accounts. Such shares are deducted from the shareholders’ equity and reflected in the financial statements under the heading of “parent company held by subsidiaries”.
3-4- The fiscal year of subsidiaries ends on December 21 of each year and their operations are consolidated in the same manner. Nonetheless, in the case any event occurs up to the reporting date of the bank’s financial statements which might substantially affect the consolidated financial statements in their entirety, the effect thereto would be reflected in accounts by making the required adjustments in the items of the financial statements of subsidiaries.
3-5- Atieh Alborz Company was not consolidated in the financial statements of the fiscal year ending March 20, 2017, due to its lack of operations or a future plan to be either transferred or dissolved. The adjustments so required have been made in the financial statements.
3-6- Upon transfer of a portion of Saman Electronic Payment Company’s shares at the end of the reporting period, this company became an affiliate of the bank. Thus, the results of its operations were consolidated in the financial statements by the date of its transfer and the balance of its investment was also reflected in the note to the invetment in affiliates by using the net worth method.
3-7- Upon expansion of Atieh Andishan Sepehr Shargh Company business activities during the fiscal year ending March 20, 2017, this company’s operations were also reflected in the bank’s consolidated financial statements.
4- Operating and reporting currency unit
The items in the financial statements have been measured by using Rial as the currency unit in the main economic environment where Saman Bank has been operating. Such items have been presented in Iranian million rials (shortened to Rls. M.) for better understanding and comprehensibility unless otherwise expressly stated in financial statements and/or in the relevant explanatory notes.
5- Using judgment and estimates
In preparing the present financial statements, the Bank management have used, made and adopted judgments, estimates, and assumptions in determining the amounts recognized in the financial statements. Arguably, the actual results may vary from such estimates. However, the estimates and assumptions are based on historical records and the management board will continuously review them by comparing with actual events. The key areas used by the management in their judgement and estimates are as follows:
5-1- In preparing the bank financial statements, no particular judgement and estimate have been used.
6- Basis for measurement
The prevalent measuring system in the bank is based on the historical cost price. However, for certain fixed assets including land, buildings thereon, and goodwill, the basis of revaluation method adopted by independent experts or appraisers has been applied.
7- Change in accounting policies
The bank has used and presented in its financial statements the accounting policies and methods set forth in note 8 in pursuance of common practice stability for all periods so reported.
8- Summary of significant accounting policies
8-1- Investments
8-1-1- Method of valuation
Long-term investments are valuated at cost price upon deduction of any accumulated loss in each item of investment and the current quickly marketable investments are valuated at market price and other current investments are valuated at lower of cost price and net sales value of each item of investment.
8-1-2- Method of income recognition
The incomes earned from investments in subsidiary and affiliated companies are recognized at the time of approving profit (dividends) by the investee company shareholders’ general meeting (by the approval date of financial statements) and the incomes from other long-term and current investments are recognized at the time of approving profit (dividends) by the investee company’s shareholders’ general meeting (by the balance sheet date).
The table below contains a summary of valuating and recognizing incomes earned from investments in the parent company and group companies.
Group Parent Company
Method of valuation Long-term investments
Investment in subsidiaries qualified forconsolidation
Qualified for consolidationCost-price (less reserve for accumulated value
impairment in each item of investment)
Investment in affiliated companies Net worthCost-price (less reserve for accumulated value
impairment in each item of investment)
Other Long-term investments Cost-price (less reserve for accumulated vslue
impairment in each item of investment)Cost-price (less reserve for accumulated value
impairment in each item of investment)
Current investments
Investment in marketable securities Lower of cost price and net sales value of
aggregate investments Lower of cost price and net sales value of
aggregate investments
Other current investments Lower of cost price and net sales value of each
item of investment Lower of cost price and net sales value of each
item of investment
Method of income recognition
Investment in subsidiaries qualified forconsolidation
Qualified for recognition At the time of approving profit by the investee
company’s shareholders’ general meeting(until the approval date of financial statements)
Investment in affiliated companies Net worth method At the time of approving profit by the investee company’s shareholders’ general meeting (by
the approval date of financial statements)
Other Long-term investments At the time of approving profit by the investee company’s shareholders’ general meeting (by
the balance sheet date)
At the time of approving profit by the investee company’s shareholders’ general meeting (by
the balance sheet date)
66 67Financial Report
8-2- Tangible Fixed Assets
8-2-1- Except for land and buildings, the tangible fixed assets are recorded in accounts on the basis of cost. The expenditures incurred for renovation and major repairs that will substantially increase the capacity or the useful life of fixed assets or will fundamentally improve the output quality are regarded as capital expenditures and will be depreciated/amortized over the remaining useful life of related assets. The expenditures incurred for minor repairs and maintenance out of the assets initial valuated performance standards for the purpose of protection or recovery of the expected economic benefits of commercial unit are regarded as current expenses at the time of occurrence and recorded in the profit and loss account of the given period.
8-2-2- Land and buildings are reflected in accounts on the basis of revaluation. The revaluation rotation period will be five years under the prevailing accounting standards which should be made by independent experts/appraisers (of the Judiciary).
8-2-3- Depreciations of tangible fixed assets are calculated and recorded in accounts under the provisions of the Depreciation Rules subject of amended article 151 of Direct Taxation Law and on the basis of the following rates and methods:
8-2-4- For the fixed assets acquired and used during the month, depreciation will be calculated at the time of purchase and recorded in accounts. When each item of depreciable assets, upon availability for operation is not utilized for sometime on the grounds of work stoppage or shut-down, the rate of depreciation for such period will be equivalent to 30% of the rate which has been reflected in the above-mentioned table.
8-3- Intangible assets
8-3-1- Intangible assets (except for goodwill of business place) are entered in accounts at cost. Computer software packages used for operational and administrative purposes are depreciated on a straight line basis over 3 years. For other intangible assets no depreciation/amortization is computed.
8-3-2- The goodwill is entered in accounts on the basis of revaluation. The rotation period of revaluation will be 5 years under the prevailing accounting standards which should be made by independent experts/appraisers (of the Judiciary). Subject to the directive No. MB/2946 of March 6, 2007 issued by the Central Bank, the goodwill will not be depreciated. However, upon a value impairment test at the end of each financial year, the required provision will be calculated if it is deemed necessary.
8-3-3- For that group of intangible assets with indefinite use and without change in their return (having indefinite useful lifecycle) no depreciation will be calculated.
8-4- Recognizing incomes from the loan facilities granted, fees and late payment penalties
On the strength of the resolution adopted by the Money and Credited Council at its 1044 session of July 16, 2005 which was notified under the directive No. 772/MB of July 18, 2005 by the Central Bank of I. R. Iran, the income earned from the loans granted should be recognized on the basis of accrual system. Accordingly, by virtue of the directive No. 94/258020 of November 30, 2015 no accrual income has been recognized for the category of doubtful debts. Thus on the basis of the accrual system, the method of recognizing the banks incomes is described as follows:
Assets Depreciation rate Depreciation method
Buildings and installations 7 &12% Declining line
Furniture, fixtures, computer hardware and devices 3, 5 & 10 years Straight line
Royalty on operating license 10 years Straight line
Motor vehicles 25 & 35% Declining line
POS terminals 5 years Straight line
ATM machines 10 years Straight line
Technical equipment, satelite and hub 4 &10 years and 20% Straight and declining line
Costs for branch improvement and refurbishments 3 years Straight line
Tools 1 & 4 years Straight line
Equipment and fixtures in rented buildings 2 years Straight line
8-5- In applying the provisions of the Usury-Free Banking Law ratified on August 30, 1983 and the executive regulations and by-laws thereto and in view of the directive No. 94/69643 of June 10, 2015 issued by the Central Bank of I. R. of Iran, the profit-sharing income, uses of shared resources and depositors’ share from the profit-sharing income should be calculated and the results thereof should be reported in the statement of investment deposits performance.
8-6- Classification of loans granted (loan portfolios)
Pursuant to the Directive for Classification of Assets owned by credit institutions adopted by the Money and Credit Council (subject of the directive No. MB/2823 of February 25, 2007 issued by the Central Bank of Iran) and with regard to time factors and delay in payments as described below, the customers’ financial situation and status of related industry, the loan facilities granted by the bank shall be evaluated and classified into one of the following four categories:
8-6-1- Current category (maximum up to 2 months as of the maturity date and/or the date of payment interruption)
8-6-2- Overdue category (2 to 6 months as of the maturity date and/or the date of payment interruption)
8-6-3- Outstanding category ( 6 to 18 months as of the maturity date and/or the date of payment interruption)
8-6-4- Doubtful category (over 18 months as of the maturity date and/or the date of payment interruption)
The management has not passed any judgment on the financial statements beyond the context of the aforesaid directive.
8-7- Provision for doubtful debts
Pursuant to the regulations governing the procedures for calculation of provisions for credit Institutions, as approved by the Money and Credit Council (subject of the directive No. 91/21270 of April 20, 2012 issued by the Central Bank of I. R. of Iran), provisions for the loan facilities granted are to be calculated and entered in accounts as follows:
8-7-1- General provision
General provision which is equivalent to one and half (1.5%) percent of the total loans balance at the end of each year will be calculated except for the balance of the loans for which specific provision has been covered.
8-7-2- Specific provision
Specific provision relative to the balances of overdue, outstanding and doubtful accounts will be calculated as described below upon deduction of the updated value of collaterals in each loan category by exercising the predetermined rates:
Income and late penalties on loans granted and fees Method of recognition
Interest on loans granted
Current Accrual / Cash
Overdue Accrual / Cash
Outstanding Accrual / Cash
Doubtful Accrual / Cash
Late payment penalties
Current Accrual / Cash
Overdue Accrual / Cash
Outstanding Accrual / Cash
Doubtful Cash
Commission Fees
Commission Fees from LGs issued Cash
Commission Fees from other banking services Cash
Commission Fees from loans granted on interest-free accounts Cash
68 69Financial Report
Loan category Percentage for calculation
Balance of overdue loans 10
Balance of outstanding loans 20
Balance of doubtful loans 50 - 100
8-7-3-The loans with the passage of 5 years or more of their maturity for repayment of the principal amounts and interests thereto are required to have 100% specific provision (without considering the value of collaterals).
The management has not passed any judgment on the financial statements beyond the context of the aforesaid directive.
8-8- Provision for employees’ termination benefits
The employees’ termination benefits are calculated and entered in accounts on the basis of the last month’s fixed salary and benefits for each year of their service records.
8-9- Provision for employee’s pension benefits
The bank’s employees are under the social security coverage and thus no provision for their retirement pension has been entered in accounts.
8-10- Foreign currency translation
8-10-1- Country-wide domestic accounts
Monetary items in foreign currency are translated at the official exchange rate (as announced by the Central Bank) at the balance sheet date and non-monetary items recorded in foreign currency at historical cost are converted at the rate prevailing on the date the transaction is conducted. The differences arising out of settlement or translation of foreign currency monetary items are recognized as income or expense for the given period and then entered in the profit and loss statement.
8-10-2- Subject to the statement of foreign currency parity in the indirect method, the foreign exchange rates in rial are as follows.
8-10-3- Offshore banking transactions accounts
The assets and liabilities of overseas branches are translated at foreign exchange rate at the balance sheet date and the incomes and related expenses are translated at the foreign exchange rate prevailing on the transaction profit date. All differences resulting from such conversions are recognized in the statement of comprehensive proft and loss and are classified under the heading of “shareholders’ equity” in the balance sheet. Additionally, the differences in translation of monetary items which inherently form a portion of net investment in offshore banking transactions are recognized in the statement of comprehensive profit and loss and classified and titled under shareholders’ equity” in the balance sheet until when the investment is transferred.
No Type of Currency Exchange rate at Balance sheet date (in Rls)
1 US Dollar 32,420
2 Euro 34,851
3 Pound 40,191
4 UAE Dirham 8,827
5 Canadian Dollar 24,263
6 Turkish Lira 8,945
7 Australian Dollar 24,963
8 Japanese Yen 287/72
9 Swiss Franc 32,481
10 Chinese Yuan 4,702
11 S. Korean Won 28/7
12 Indian Rupee 496
13 Omani Rial 84,184
8-11- Traesury shares/stock
Under the provision of the Law governing the Removal of Barriers of Competitive Production Barriers and Enhancement of Financial System and on the strength of the executive regulations adopted by the Stock Exchange Supreme Council, the bank shall be allowed to acquire 10 percent of its own shares. The treasury shares are to be reported on the basis of cost price on the acquisition date. Any type of differential resulting from purchase and sale of treasury shares is reflected in the shareholders’ equity section.
8-12- Taxation
The Bank’s income tax is calculated at the year-end and when the financial statements are presented in accordance with the Iranian Direct Taxation Law. The Bank is required to submit income tax return to related authorities within four months after the end of the fiscal year and pay at least 10% of its declared tax along with the income tax return. The tax authorities will assess the bank’s revenues and expenditures and issue the tax assessment notice no later than 15 months after the income tax return has been submitted. The Bank may protest against the tax assessment along with partial payment of the tax amount levied. The tax offences will also be included once the income tax has been finalized and as a common practice there is a difference between the amount declared and the amount assessed which, upon payment of the tax, will be entered in the prior years’ adjustments and then accounts will be restated.
8-13- Goodwill
The accounting policy for acquisition of units will take place on the basis of purchase method. The surplus cost of acquiring investment in subsidiaries qualified for consolidation and in affiliated companies qualified for net worth method for group shares is recognized as goodwill out of the fair net value of their recognizable assets at the time of acquisition and will be amortized over 10 years. The goodwill derived from acquisition of affiliates will be recorded in the consolidated balance sheet as part of the book value for long-term investments in the affiliated companies.
8-14- “Other items” in the notes to financial statements
Considering the number of items used for certain accounts, some items in every note have been reported under the heading of “Other”. The items which are entered in accounts under the title of “other” include insignificant or less important items in terms of content and may be up to 10% of the total amount which come under such note. Notably, the number of items under this heading has also been disclosed.
9- Cash
9-1- The cash amounts in rials and foreign currencies with the bank branches up to the limit of Rls. 2,358,703/- have been put under sufficient insurance coverage against possible accidents and risks arising from theft and fire.
9-2- The bank’s cash amounts in transit in rials and foreign currencies have received sufficient insurance
Group Parent Company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (m) Rls (m) Rls (m) Rls (m)
Cash in hand - Rial 1,596,955 1,182,452 1,586,147 1,182,094
Cash in hand - forex 9-3 1,091,497 935,647 1,080,935 927,525
Foreign currencies with brokers 405,856 739,720 0 0
Cash in transit - Rial 1,201 27,941 1,202 996
Cash in transit - Forex 0 0 0 0
Demand deposits with CBI (unrestricted) 9-4 4,171,647 2,478,732 4,171,647 2,478,732
Deposits with other banks and credit institutions(unrestricted)
9-5 24,757,448 45,352,279 24,654,783 44,772,818
32,024,604 50,716,771 31,494,714 49,362,165
70 71Financial Report
March 20, 2017 March 19, 2016
Currency Type Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M)
US Dollar 19,235,342/83 32,420 623,609 12,935,464/22 30,240 391,168
Euro 11,582,646/69 34,851 403,666 13,872,587/07 33,935 470,766
UK Pound 222,281/18 40,191 8,934 152,079/59 43,089 6,552
UAE Dirham 5,064,209 8,827 44,703 7,166,705 8,234 59,012
Turkish Lyra 2,615 8,945 23 2,615 10,551 27
1,080,935 927,525
Note March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Demand deposits with CBI - Forex (unrestricted) 9-4-1 344 335
Demand deposits with CBI - Rial (unrestricted) 9-4-2 4,171,303 2,478,397
Demand deposits with Central Banks of other countries 0 0
4,171,647 2,478,732
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amount in Rls. Forex amount Exchange rate Amount in Rials
Rls (M) Rls (M)
US Dollar 7,634 32,420 247 7,634 30,240 230
Euro 2,782 34,851 97 3,073 33,935 105
Indian Rupee 1 496 0 1 453 0
S. Korea Won 27 29 0 27 26 0
Omani Rial 1 84,184 0 1 78,546 0
344 335
coverage up to the limit of Rls. 480,435/- million for each time of shipment against possible risks and damages.
9-3- The cash foreign currencies owned by the parent company were converted on March 20, 2017 at the exchange rates announced by the Central Bank of Iran whereby the balances at the balance sheet date were as follows:
9-4- The demand deposits with the Central Bank of Iran (CBI) (unrestricted)
9-4-1- The current forex deposits with the Central Bank of Iran (CBI) were as follows:
9-4-2-The rial-denominated current account with the Central Bank under No. 26200/5 is used for settlement of rial-denominated interbank transactions including the adjustment of statutory deposit balance, settlement of documents exchanged through the clearing house, operations performed by SATENA, PAYA and SHETAB and… payment systems. The balance of this account as per the bank books on March 20, 2016 was in amount of Rls. 4,172 billion. As reflected in the CBI’s statement, the balance of this account was debited in the amount of Rls. 1,339 billion. The discrepancy was due to:
9-4-2-1-Following the problems which arose in the wake of the foreign currency exchange rates in 2011 in the country, Saman Bank was selected to act as a distributing partner for foreign currency allocation. For this purpose, Saman Bank organized an action plan and managed this function within the framework of the commitments and arrangements so undertaken.
9-4-2-2-On March 5, 2012, the Central Bank of Iran withdrew the amount of Rls. 4,866 billion from the said current accounts under code 1006 (without considering the inadequacy of the account balance) allegedly being the differential between the free market exchange rate and the official exchange rate of the foreign currencies delivered to banks subject of a five-member team’s approval. Despite the protest raised by Saman Bank against such withdrawal, the matter has not yet been settled.
9-4-2-3-The Association for Private Banks also made a written protest against the CBI’s action (the withdrawal) on March 7, 2012.
9-4-2-4-Considering the measures taken and by virtue of the notification dated March 17, 2012, the Central Bank of Iran repaid in two stages 90% of its withdrawals totaling the amount of Rls. 4,379 billion. However, once more the amount of Rls. 2,346 billion was withdrawn from Saman Bank’s account by the Central Bank on March 18, 2012 (apparently on the strength of a decree approved by the Council of Ministers).
9-5- The deposits with other banks and credit institutions (unrestricted)
9-5-1-The demand deposits and term deposits with other local banks in Rial (unrestricted) related to Saman Bank (Parent Company) break down as follows:
Group Parent Company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Demand deposits with other local banks -Rls. (unrestricted) 9-5-1 103,935 115,862 62,107 103,996
Term deposits with other local banks - Rls.(unrestricted) 9-5-1 5,984,353 9,993,199 6,390,728 9,808,289
Demand deposits with other foreign banks - Forex (unrestricted) 9-5-2 15,689,210 32,806,945 15,689,210 32,806,945
Term deposits with other foreign banks - Forex (unrestricted) 9-5-3 901,464 125,533 901,464 125,533
Term deposits with other local banks - Forex (unrestricted) 9-5-4 496,972 427,984 29,760 45,300
Demand deposits with other local banks - Forex (unrestricted) 9-5-5 1,581,514 1,882,756 1,581,514 1,882,755
24,757,448 45,352,279 24,654,783 44,772,818
March 20, 2017 March 19, 2016
Name of Bank Demand Term Total Demand Term Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Refah 0 705,831 705,831 0 3,786 3,786
Melli 13,374 112,428 125,802 68,171 2,997,491 3,065,662
Tejarat 10 5,032 5,042 37 8,315 8,352
Saderat 9,299 16,830 26,129 11,480 32,483 43,963
Sepah 18,589 5,434 24,023 5,750 30,374 36,124
Maskan 1,265 0 1,265 5 1,642 1,647
Keshavarzi (Agricultural) 0 1,977 1,977 53 1,005,776 1,005,829
Post bank 19,570 700,000 719,570 18,350 0 18,350
Mellat 0 22,739 22,739 150 1,828,259 1,828,409
Pasargad 0 1,200,000 1,200,000 0 50 50
Gardeshgari 0 0 0 0 1,000,000 1,000,000
Sina 0 1,000,007 1,000,007 0 32 32
Ansar 0 920,000 920,000 0 1,200,000 1,200,000
Dey 0 700,081 700,081 0 73 73
Middle East 0 369 369 0 8 8
Ayandeh 0 0 0 0 1,200,000 1,200,000
Sarmaye 0 0 0 0 500,000 500,000
Parsian 0 500,000 500,000 0 0 0
Melal Credit Institution 0 500,000 500,000 0 0 0
62,107 6,390,728 6,452,835 103,996 9,808,289 9,912,285
72 73Financial Report
March 20, 2017 March 19, 2016
Currency type Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M)
US Dollar 4,278,688/28 32,420 138,715 3,645,933/28 30,240 110,253
Euro 347,344,430/90 34,851 12,105,300 358,406,397/95 33,935 12,162,521
UK Pound 262,796/99 40,191 10,562 262,690/24 43,089 11,319
UAE Dirham 39,456,682/34 8,827 348,284 38,939,656/87 8,234 320,629
Swiss Franc 13,397,878/57 32,481 435,176 60,688,632/11 30,933 1,877,281
Chinese Yuan 59,804,598/77 4,702 281,201 164,727,974/30 4,655 766,808
Turkish Lira 21,532,650/18 8,945 192,610 126,532,242/80 10,551 1,335,041
Japanese Yen 678,357,174 288 195,177 19,972,485,686 269 5,376,393
S. Korea Won 9,986,928,764 29 286,625 10,673,363,786 26 274,957
Omani Rial 10,802,923/27 84,184 909,434 91,215,839/28 78,546 7,164,640
Indian Rupee 1,584,930,813/03 496 786,126 7,521,196,747/69 453 3,407,103
15,689,210 32,806,945
March 20, 2017 March 19, 2016
Currency type Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M)
Euro 2,766,480 34,851 96,414 2,766,480 33,935 93,880
Turkish Lira 90,000,000 8,945 805,050 3,000,000 10,551 31,653
901,464 125,533
March 20, 2017 March 19, 2016
Currency type Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M)
Indian Rupee 60,000,000 496 29,760 100,000,000 453 45,300
29,760 45,300
9-5-2-The foreign currency demand deposits with other foreign banks (unrestricted) all belong to Saman Bank (parent company) and are listed below by a breakdown of currency type:
9-5-3-The foreign currency term deposits with foreign banks all belong to the parent company and are listed below by a breakdown of currency type:
9-5-4-The foreign currency term deposits with local banks belong to the parent company and are listed below by a breakdown of currency type:
March 20, 2017 March 19, 2016
Currency type Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M)
US Dollar 35,610,827/05 32,420 1,154,503 33,821,535/10 30,240 1,022,763
Euro 2,076,353/83 34,851 72,363 9,192,966/25 33,935 311,963
UK Pound 4,232,792/57 40,191 170,120 4,232,792/57 43,089 182,387
UAE Dirham 1,618,198/36 8,827 14,284 1,633,198/36 8,234 13,448
Australian Dollar 12,748 24,963 319 12,748 22,966 293
Japanese Yen 590,590,636 287/72 169,925 1,307,255,798 269/19 351,901
1,581,514 1,882,755
9-5-5- Foreign currency demand deposits with local banks all belong to the parent company and are listed below by a breakdown of currency type:
9-6- The deposits with banks which have restrictions on their withdrawal (time and other restrictions) have been classified under the heading of “Due from banks”.
10-1-The deposits with banks which do not have restrictions on their withdrawal have been classified under the heading of “cash”.
10-2- Due from Central Bank of Iran
10- Due from banks and credit institutions
Parent Company
Note March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Due from CBI 10-2 5,473,375 8,131,047
Due from other banks and credit institutions 10-3 4,202,655 4,702,604
9,676,030 12,833,651
Parent Company
Note March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Demand deposit with CBI - rial (restricted) 0 0
Demand deposit with CBI - forex (restricted) 0 0
Demand deposit with Central Banks of other countries (restricted) 0 0
Interest receivable on statutory deposit 0 0
Other amounts due (3 items) 10-2-1 5,473,374 8,131,047
5,473,374 8,131,047
10-2-1- Other amount due are as follows:
10-2-1-1- The balance of this account ammounting to Rls.5,464, 066/- million is related to the purchase of forex from the Central Bank of Iran for letters of credit under the directive No. M60/1015 of December 7, 2013 issued by the CBI and breaks down as follows:
74 75Financial Report
It is further added that owing to the follow-up actions by the bank management and by the issuance date of the financial statements, an agreement was reached between the representatives of the CBI’s Office of Statistics and Forex Obligations and representatives of Saman Bank to the effect that the Central Bank agreed to provide the amount of $ 363 million as listed below. Accordingly, on the strength of the letter No. 256646 of December 16, 2014, the Central Bank has made the settlement of forex debts due subject to the performance of a special audit of foreign currency by an independent auditor for the years 2012 and 2013. In pursuance of this demand, Sokhane-hagh Auditting Services and Institute performed an audit as requested by CBI and then Saman Bank submitted the completed audit report containing the detailed list of the assets and liabilities as well as forex resources used covering the years 2012 and 2013 to the CBI Deputy for Foreign Exchange Affairs under the letters No. 95.31969 of March 18, 2017 and No. 95.31972 of March 18, 2017.
10-2-1-2- The balance of this account amounting to Rls. 9,308/- million is mainly related to non-payment of a portion of the statutory deposit for depreciation of the exchange rate as provided in the 2011 Policy and Regulatory Rules adopted by the CBI.
10-3- Due from other banks and credit institutions
March 20, 2017
Currency type
Preferential exchange rate Official exchange rate Total
Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials Forex amount Forex rate Amount in Rials
Rls (M) Rls (M) Rls (M)
Euro 62,716,454/42 34,851 2,185,731 36,614,837/46 34,851 1,276,063 99,331,291/88 34,851 3,461,794
UAE Dirham 34,270,705/10 8,827 302,507 2,563,672/38 8,827 22,629 36,834,377/48 8,827 325,137
Chinese Yuan 0 4,702 0 24,142,410/16 4,702 113,517 24,142,410/16 4,702 113,517
S. Korean Won 52,416,788,566 29 1,504,361 2,040,050,208/00 29 58,549 54,456,838,774 29 1,562,914
Turkish Lira 78,719/68 8,945 704 0 8,945 0 78,719/68 8,945 704
3,993,303 1,470,758 5,464,066
Amounts in dollar
Exchange rate Amount requested by
Saman bank underletter no.
210/92/M/013678
of February 25, 2014
Data entered by Saman bank on website ofStatistics Information Department Post-control
obligations Total registered
amountDue from CBI
Preferential exchange rate 462,679,859 750,600,608 563,176,118 301,954,123
Official exchange rate 140,214,008 170,080,338 150,154,772 43,187,252
Current exchange rate 0 0 0 18,100,244
Loan interest rate 0 955,547 461,132 0
602,893,867 921,636,493 713,792,022 363,241,619
Parent Company
Note March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Payment of checks issued by other banks 10-3-1 43,094 184,475
Facilities granted to other banks and credit institutions 0 0
Demand deposits with other local banks and credit institutions - rial (restricted) 0 0
Demand deposits with other local banks and credit institutions - forex (restricted) 0 0
Term deposits with other local banks and credit institutions - rial (restricted) 0 0
Term deposits with other local banks and credit institutions - forex (restricted) 0 0
Demand deposits with foreign banks - forex (restricted) 0 0
Term deposits with foreign banks - forex (restricted) 0 0
Other amounts due 10-3-2 4,159,561 4,518,129
4,202,655 4,702,604
10-3-1- The balance of this account is settled through the clearing house for banking instruments no later than two working days as the case may be.
10-3-2- The amount of Rls. 4,159,555/- million out of “other amounts due” is related to Saderat Bank and Passargad Bank and breaks down as follows:
Balance of facilities
2017 2016
Name of bank Type
of currency
Type
of contract
Interest
rate
(percentage)
MaturityType of
collateral
Forex
amountRls (M) Rls (M)
Amounts in Rls.
Saderat RialFactoring (discount) 21 April 23, 2011 LC documents 0 275,316 275,316
Saderat RialFactoring (discount) 21 October 21, 20111 LC documents 0 0 249,681
Saderat RialFactoring (discount) 21 April 27, 2011 LC documents 0 260,009 260,009
Saderat RialFactoring (discount) 21 August 1, 2011 LC documents 0 300,300 300,300
Saderat RialFactoring (discount) 21 June 28, 2011 LC documents 0 261,214 261,214
Saderat RialFactoring (discount) 21 June 28, 2011 LC documents 0 260,000 260,000
Saderat RialFactoring (discount) 21 April 25, 2011 LC documents 0 50,370 50,370
Saderat RialFactoring (discount) 21 May 24, 2011 LC documents 0 320,576 320,576
Saderat RialFactoring (discount) 21 May 10, 2011 LC documents 0 240,387 240,387
Saderat RialFactoring (discount) 21 May 10, 2011 LC documents 0 240,463 240,463
Saderat RialFactoring (discount) 21 May 4, 2011 LC documents 0 260,971 260,971
Saderat RialFactoring (discount) 21 April 28, 2011 LC documents 0 239,990 239,990
Saderat RialFactoring (discount) 21 March 9, 2011 LC documents 0 242,399 242,399
Saderat RialFactoring (discount) 21 April 23, 2011 LC documents 0 274,708 274,708
3,226,703 3,476,384
Amounts in forex
Pasargad EuroFactoring (discount) 12.81 October 5, 2012 LC documents 15,766,893 549,491 535,049
Pasargad EuroFactoring (discount) 12.81 September 29, 2012 LC documents 5,000,000 174,255 169,675
Pasargad EuroFactoring (discount) 12.81 October 3, 2012 LC documents 6,000,000 209,106 203,610
932,852 908,334
4,159,555 4,384,718
General provisionfor doubtful debts
10-3-2-1 0 0
Specific provisionfor doubtful debts
10-3-2-2 0 0
4,159,555 4,384,718
76 77Financial Report
Saderat Bank
In line with the policy of expanding banking services aimed at providing finance for its customers in the areas of rials and foreign currencies, mitigating the credit portfolio risks and maintaining the capital adequacy1 ratio, Saman Bank included in its loan portfolio services the discount of the term letters of credit which other banks opened and guaranteed their payments on due dates as of March 2011 (ending the Iranian calendar year). In the area of foreign currencies, discounts were made without recourse to the beneficiary by paying the amounts so discounted into the beneficiary’s account (the discount applicant) in compliance with the appropriate rules and standards and within the context of the regulations governing the forex letters of credit and uniform rules concerning the letters of credit. In the area of rials, Saman Bank discounted the locally-issued term letters of credit (in rials) opened by the Iranian banks within the framework of the rules governing the local letters of credit (in rials) and applicable standards adopted by the Central Bank of Iran (uniform rules concerning the letters of credit) without recourse as of 2010 and early periods of 2011 and paid the amounts so discounted into the beneficiary’s account (the discount applicant) in compliance with the appropriate rules and regulations. The discounts so described were performed along with the exercise of all necessary controls following the exchange of instruments in the letters of credit and after receipt of required confirmations (encoded Faxes from correspondent banks) regarding the authenticity of opened letters of credit as well as irrevocable commitments by the opening banks for payment of the proceeds derived from such discounts to Saman Bank on due dates and in return for transfer of the beneficiary’s rights ( discount applicant).
A number of companies made applications for discount of the letters of credit opened and guaranteed by other banks which were processed in compliance with the foregoing standards and upon receipt of authorization from the bank’s credit committees. For the discount of forex-denominated letters of credit, all credit items were paid and settled on maturity dates by the banks which had opened and guaranteed such instruments. For the discounts of rial-denominated term letters of credit all items with the exception of a number of items connected with Amir Mansour Arya Group, were paid and settled by the opening banks in a normal way of business practices. For the discounting facilities provided for the companies affiliated to Amir Mansour Arya Group or for the companies which were trading partners of this Group, except for two banks, Bank Saderat and Bank of Industry and Mine, all other banks including Pasargad Bank, Sepah Bank, Bank Melli and Bank Maskan fulfilled their obligations and paid Saman Bank the committed amounts under 18 letters of credit totaling Rls. 2,136 billion on the due dates. Only the two banks of of Saderat and Industry and Mine failed to honor their obligations pledged against Saman Bank. The total discounts made and the amounts guaranteed to be paid in the letters of guarantee by these two opening banks on the maturity dates were as follows:
1. In calculating the capital adequacy ratio, the assets capital guaranteed or underwritten by local banks are weighted with a lower risk factor relative to other assets with immovable-backed houses/residentials.
Company name (first beneficiary) discounting applicant/
transferor of proceeds
Customer no.
LC opening bank (Obligor to pay
funds on maturity)
Balance of documents
traded (in billion rials)
Company's ownership (percentage held)
Elit Co.- Anzali Free Trade 1305959 Saderat 761 Amir Reza Moujoudi (99)
Fouladyar Iranian Trading-Industerial Co. 174667 Saderat 300 Staff cooperative Co. of National Iranian Industrial and Steel Group (55 of shares) Iran metal wastes procurement and processing Co. (40 of shares)
Foulad Iran Public Service Co.. 7778609 Saderat 521 Foulad Staff Pension Fund(99.7)
Khuzestan Steel Co. 13934 Saderat 807 IMIDRO (50.5) & Provincial Investment
Companies (30)
Foulad Spadana Co. 1124386
Saderat 1,350
Amir Reza Taremi (95)
Industry & Mine 499
Parsian Milad Hadid Co. 1124386 Saderat 802 Mohsen Karimian (60)
5,040
Amounts collected by March 20, 2017 (1,814)
Final court decree against Bank Saderat (2,952)
Debt balance 274
1- Writ No. 921420227900208 Rls (M)
Remedy sought (the principal amounts for four letters of credit): 807,183
Litigation cost paid by Saman Bank 16,144
Late payment penalty as of July 16, 2012 402,914
Difference in litigation cost 8,058
Lawyer's fee 200
1,234,499
2- Writ No. 921420227900211 Rls (M)
Remedy sought-principal amount 257,600
Litigation cost 5,152
Late payment penalty as of October 1, 2011 203,654
Difference in litigation cost 4,073
Lawyer's fee 200
470,679
In order to protect the interests and rights of Saman Bank and seek compensation from the guaranteed amounts and force the two banks of Saderat and Industry and Mine to fulfill their obligations, Saman Bank has taken legal actions versus these two banks by claiming the collection of proceeds derived from 8 matured letters of credit whereby 6 letters of credit are related to Bank Saderat and 2 letters of credit are related to Bank of Industry and Mine. For all of the 8 letters of credit, Saman Bank submitted a statement of claim to the trial court and requested confiscation of the assets and property owned by the opening banks. Thus the court’s order resulted in the seizure of the assets which belong to Saderat Bank and Bank of Industry and Mine being equivalent to the amounts claimed by Saman Bank. Until the date of presenting financial statements, the court made its ruling on the two cases, brought against the Bank of Industry and Mine in favor of Saman Bank which upon finality of decree and issuance of a writ for execution of the court’s decision resulted in the collection of Rls. 666 billion comprising the original amount for Rls 499 billion, late payment penalty, litigation costs and lawyer’s fee for the amount of Rls. 167 billion. In pursuance of legal actions, Bank Saman brought and followed up claims against Bank Saderat for six letters of credit under three separate cases with the Bench No. 19 of Tehran Civil Courts with a description of:
- Case No. 9009980227900567 remedy sought for the letter of credit No. 89/3446/0072 in the amount of 242,400 million rials;
- Case No. 9009980227900569 remedy sought for the letter of credit No. 89/34469/0063 for the amount of 257,600 million rials; and
- Case No. 9109980227900613 remedy sought for four letters of credit under Nos. 90/3446/0029, 90/3446/0030, 90/3446/0023 and 90/3446/0024 in the amount of 807,183 million rials in total.
The court passed judgments in favor of Saman Bank and ordered Bank Saderat to pay the original amounts claimed and compensate for late payment penalties, litigation costs and lawyer’s fees based on legal rates.
After the court’s initial verdicts received finality in the Bench No. 12 of Tehran Provincial Court of Appeal (Revision), and upon the request made by Saman Bank, three writs of execution were issued for enforcement of the final judgements ( actions of debt collection) with description of:
- Writ No. 9210420227900212 for the case No. 900998227900567;
- Writ No. 9210420227900211 for the case No. 900980227900569;
- Writ No. 9210420227900208 for the case No. 910980227900613.
After the above writs had been served, upon the request made by Bank Saderat, the head of Judiciary ordered the stay of execution for the writ No. 9210420227900212 and thus no money was collected. The Office of Judgments’ Enforcement of the relevant court bench made a calculation of the amounts due to be collected under the other two writs as follows:
78 79Financial Report
Rls (M)
Remedy sought (Principal amounnt) 249,682
Late payment penalty as of July 17, 2012 262,450
Lawyer's fee 7,490
519,622
In all cases, at the request of Saman Bank’s lawyers an attachment order was issued against Bank Saderat for the amounts inserted in the letters of credit for 11 of such items under Nos. 90/3446/0015, 90/3446/0021, 90/3446/0017, 90/3446/0037, 90/3446/0038, 90/3446/0018, 90/3446/0031, 90/3446/0028, 90/3446/0027, 90/3446/0019, 90/3446/0022 Judgements were issued against Bank Saderat enforcing this Bank to pay the principal amounts and costs sustained in each case.
Pasargad Bank
As regards the letters of credit of Pasargad Bank, this bank has filed a lawsuit versus the claims which is now pending at Bench No. 7 of the Public Court of Law.
Upon the sale of the pledged shares owned by Bank Saderat an amount totaling 1,574,697 million rials was collected and delivered to Bank Saman under four checks. As the head of Judiciary issued an order for the stay of execution, the remainder of the relief sought in the amount of Rls. 142 bilion has not been collected. Upon the appeal made by the judgment debtor or losing party (namely Bank Saderat), the given cases are being examined and reviewed by the Judiciary Deputy for Judicial and Supervisory Affairs under the provision of amended article 18 of the Law for Formation of Public and Revolutionary Courts. Obviously, as soon as the effects resulting from the order for the stay of execution have been removed, the enforcement actions will be restarted to collect and recover the remainder of the judgment debts.
Furthermore, the statement of claim for 13 letters of credit related to Bank Saderat under Nos. 90/3446/0010, 90/3446/0015, 90/3446/0016, 90/3446/0019, 90/3446/0021, 90/3446/0022, 90/3446/0017, 90/3446/0018, 90/3446/0027, 90/3446/0028, 90/3446/0031, 90/3446/0037 and 90/3446/0038 were submitted to the judicial authorities/law-courts which were referred to the benches No. 4, 19 and 14 for investigation and hearing. The first court hearings were subjected to retrial due to the counter claim (July 7, 2012) made by Bank Saderat. Lastly, upon resumption of the court hearings and submissions of various evidentiary documents and memorials, the case pertaining to the letter of credit no. 90/3446/0010 was adjudicated by the court bench No. 4 with a judgment against Bank Saderat ordering this bank to pay the principal amount of 249, 681 million rials and amount of 7, 491 million rials - for litigation cost, lawyer’s fee as per the tariffs and late payment penalty, from the date the claim was brought versus Saderat Bank until the collection date of these sums on the basis of inflation index rate as announced by the Central Bank of Iran in the amount of Rls. 262,450/- million. Reciprocally, Bank Saderat made an appeal against this judgment with the court of appeal (Court of Revision). The Bench No. 18 of Tehran Appeal Court upheld the initial court’s judgment in favor of Saman Bank. Upon the request made by Saman Bank lawyers, an enforcement writ was issued against Saderat Bank and an amount of Rls. 519,624/- million in total was collected and credited in favor of Saman Bank.
Gro
up
Mar
ch 2
0, 2
017
Mar
ch 1
9, 2
016
Bal
ance
of
pri
ncip
al,
unr
ealiz
ed a
nd d
efer
red
inte
rest
s
Bal
ance
of
inte
rest
rec
ieva
ble
and
fee
Bal
ance
of
late
pen
altie
sre
ceiv
able
Am
ount
s r
ecei
ved
for
Muz
arab
eh a
nd jo
int c
ivil
par
tner
ship
acco
unts
Unr
ealiz
edin
tere
st
Def
erre
d in
tere
st a
ndfe
eTo
tal
Dou
btfu
l deb
t Pr
ovis
ion
Net
Net
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sale
s by
inst
allm
ents
9,4
54,0
54
798
,593
2
3,67
9 0
(3,5
45,9
03)
(20,
723)
6,7
09,7
00(5
8,18
3)6,
651,
517
4,8
00,7
97
Jeal
eh (s
ervi
ce c
ontr
acts
) 8
,969
,260
3
20,5
13
192
,347
0
(1,6
82,7
73)
(278
,266
) 7
,521
,081
(16,
320)
7,50
4,76
1 3
,402
,453
Hir
e pu
rcha
se 1
,909
,123
5
,916
2
75,2
36
0(3
0,01
0)(7
,523
) 2
,152
,742
(64,
006)
2,08
8,73
6 2
,093
,045
Sala
f (fu
ture
con
trac
ts)
28,
895
1,7
75
23,
526
0 0
(2,6
41)
51,
555
(13,
478)
38,0
77 1
4,54
8
Mur
abah
ah (S
ale
cont
ract
s) 8
6,18
4 8
40
227
0
(15,
650)
(281
) 7
1,32
0 0
71,3
20 3
7,67
7
Inte
rest
free
loan
(Qar
zolh
asan
eh)
764
,288
0
0 0
0 0
764
,288
076
4,28
8 1
40,9
70
Muz
arab
ah (t
rade
con
trac
ts)
7,6
41,8
25
1,5
16,8
47
4,6
49,9
26
(282
,681
) 0
(590
,638
) 1
2,93
5,27
9(9
44,4
51)
11,9
90,8
28 1
3,51
1,34
9
Civ
il pa
rtne
rshi
p-(M
osha
raka
t Mad
ani)
75,
761,
820
10,
524,
518
11,
201,
444
(3,7
26,0
79)
0(3
,782
,045
) 8
9,97
9,65
8(3
,919
,988
)86
,059
,670
89,
480,
174
Fact
orin
g 1
,183
,849
4
59,2
60
4,6
40,0
27
0(7
,779
)(5
89,7
77)
5,6
85,5
80(2
7,91
3)5,
657,
667
4,8
69,1
75
Oth
er lo
ans
gran
ted
in r
ial
0 0
0 0
0 0
0 0
0 0
Este
sna'
a 0
0 0
0 0
0 0
00
0
Loan
s gr
ante
d in
fore
x 3
,906
,279
3
47,7
94
567
,617
0
0 0
4,8
21,6
90(3
5,36
9)4,
786,
321
5,0
38,0
74
Deb
tors
of L
Cs
paid
1,7
10,8
25
518
,118
1
39,1
68
0(6
,505
) 0
2,3
61,6
06(1
,016
,522
)1,
345,
084
2,0
61,8
23
Deb
tors
of L
Gs
paid
401
,553
1
,333
2
45,7
30
0 0
0 6
48,6
16(1
12,9
68)
535,
648
1,2
32,5
66
Deb
tors
of c
redi
t car
ds p
aid
38,
368
0 0
0 0
0 3
8,36
8 0
38,3
68 9
,214
111
,856
,323
14,
495,
507
21,
958,
927
(4,0
08,7
60)
(5,2
88,6
20)
(5,2
71,8
94)
133
,741
,483
(6,2
09,1
98)
127
,532
,285
126
,691
,865
11
-1-
The
loan
s gr
ante
d by
the
grou
p ar
e lis
ted
in th
e fo
llow
ing
tabl
e:
11-
Loa
ns g
rant
ed to
and
am
ount
s du
e fr
om n
on-g
over
nmen
tal e
ntiti
es p
erso
ns
80 81Financial Report
Pare
nt C
ompa
ny
Mar
ch 2
0, 2
017
Mar
ch 1
9, 2
016
Bal
ance
of
pri
ncip
al,
unr
ealiz
ed a
nd d
efer
red
inte
rest
s
Bal
ance
of i
nter
est
reci
evab
le a
nd fe
e
Bal
ance
of
late
pen
altie
sre
ceiv
able
Am
ount
s r
ecei
ved
for
Muz
arab
eh a
nd jo
int c
ivil
par
tner
ship
acco
unts
Unr
ealiz
edin
tere
st
Def
erre
d in
tere
st a
ndfe
eTo
tal
Dou
btfu
l deb
t Pr
ovis
ion
Net
Net
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sale
s by
inst
allm
ents
9,4
54,0
54
798
,593
2
3,67
9 0
(3,5
45,9
03)
(20,
723)
6,7
09,7
00(5
8,18
3)6,
651,
517
4,8
00,7
97
Jeal
eh (s
ervi
ce c
ontr
acts
) 8
,969
,260
3
20,5
13
192
,347
0
(1,6
82,7
73)
(278
,266
) 7
,521
,081
(16,
320)
7,50
4,76
1 3
,402
,453
Hir
e pu
rcha
se 1
,909
,123
5
,916
2
75,2
36
0(3
0,01
0)(7
,523
) 2
,152
,742
(64,
006)
2,08
8,73
6 2
,093
,045
Sala
f (fu
ture
con
trac
ts)
28,
896
1,7
75
23,
526
0 0
(2,6
41)
51,
556
(13,
479)
38,0
77 1
4,54
8
Mur
abah
ah (S
ale
cont
ract
s) 8
6,18
4 8
40
227
0
(15,
650)
(281
) 7
1,32
0 0
71,3
20 3
7,67
7
Inte
rest
free
loan
(Qar
zolh
asan
eh)
764
,288
0
0 0
0 0
764
,288
076
4,28
8 1
40,9
70
Muz
arab
ah (t
rade
con
trac
ts)
7,6
41,8
25
1,5
16,8
47
4,6
49,9
26
(282
,681
) 0
(590
,638
) 1
2,93
5,27
9(9
44,4
51)
11,9
90,8
28 1
3,51
1,34
9
Civ
il pa
rtne
rshi
p-(M
osha
raka
t Mad
ani)
75,
978,
945
10,
539,
547
11,
201,
444
(3,7
36,9
99)
0(3
,782
,045
) 9
0,20
0,89
2(3
,923
,307
)86
,277
,585
89,
776,
296
Fact
orin
g 1
,183
,850
4
59,2
60
4,6
40,0
27
0(7
,779
)(5
89,7
77)
5,6
85,5
81(2
7,91
3)5,
657,
668
4,8
69,1
75
Oth
er lo
ans
gran
ted
in r
ial
0 0
0 0
0 0
0 0
0 0
Este
sna'
a 0
0 0
0 0
0 0
00
0
Loan
s gr
ante
d in
fore
x 3
,906
,279
3
47,7
94
567
,617
0
0 0
4,8
21,6
90(3
5,36
9)4,
786,
321
5,0
38,0
74
Deb
tors
of L
Cs
paid
1,7
10,8
26
518
,118
1
39,1
68
0(6
,505
) 0
2,3
61,6
07(1
,016
,523
)1,
345,
084
2,0
61,8
23
Deb
tors
of L
Gs
paid
401
,553
1
,333
2
45,7
30
0 0
0 6
48,6
16(1
12,9
68)
535,
648
1,2
32,5
66
Deb
tors
of c
redi
t car
ds p
aid
38,
368
0 0
0 0
0 3
8,36
8 0
38,3
68 9
,214
112
,073
,451
14,
510,
536
21,
958,
927
(4,0
19,6
80)
(5,2
88,6
20)
(5,2
71,8
94)
133
,962
,720
(6,2
12,5
19)
127
,750
,201
126
,987
,987
11
-2-
The
loan
s gr
ante
d by
the
pare
nt c
ompa
ny a
re li
sted
in th
e fo
llow
ing
tabl
e:11-3- Classification of Group loans granted to and amounts due from non-governmental entities/persons based
on the regulations adopted by the Money and Credit Council (Note 8-6 to the financial statements) breaks down as follows:
Group
March 20, 2017
Current Overdue outstanding doubtful Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Sales by installments 10,099,997 2,813 2,475 171,040 10,276,325
Jealeh (service contracts) 7,764,152 67,738 968 1,649,260 9,482,118
Hire purchase 371,871 3,830 105 1,814,467 2,190,273
Salaf (future contracts) 25,336 0 0 28,858 54,194
Murabahah (Sale contracts) 86,771 0 0 480 87,251
Interest free loan (Qarzolhasaneh) 759,740 2,515 1,511 520 764,286
Muzarabah (trade contracts) 9,035,698 451,095 439,233 3,882,571 13,808,597
Civil partnership-(Mosharakat Madani) 80,537,503 1,420,563 3,004,359 12,525,355 97,487,780
Factoring 5,235,747 0 0 1,047,389 6,283,136
Other loans granted in rial 0 0 0 0 0
Estesna'a 0 0 0 0 0
Loans granted in forex 2,462,479 0 0 2,359,212 4,821,691
Debtors of LCs paid 746,635 1,621,476 2,368,111
Debtors of LGs paid 338,008 310,608 648,616
Debtors for credit cards paid 38,367 0 0 0 38,367
117,502,304 1,948,554 3,448,651 25,411,236 148,310,745
Less:
Unrealized interest (5,288,617) (5,288,617)
Deferred Interest and fee (195,884) (520,571) (4,555,435) (5,271,890)
Joint Civil partnership (3,726,078) 0 0 0 (3,726,078)
Amounts received for Muzarabah (trade contracts) (282,680) 0 0 0 (282,680)
Net loans granted before deducting provision fordoubtful debts
108,204,929 1,752,670 2,928,080 20,855,801 133,741,480
General provision for doubtful debts (1,776,443) (1,776,443)
specific provision for doubtful debts (62,254) (41,326) (4,329,172) (4,432,752)
Balance at March 20, 2017 106,428,486 1,690,416 2,886,754 16,526,629 127,532,285
Balance at March 20, 2016 105,232,238 1,366,688 2,754,802 17,338,137 126,691,865
82 83Financial Report
11-4- Classification of the parent company loans granted to and amounts due from non-governmental entities/persons based on the regulations adopted by the Money and Credit Council (Note 8-6 to the financial statements) breaks down as follows:
Parent Company
March 20, 2017
Current Overdue outstanding doubtful Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Sales by installments 10,099,997 2,813 2,475 171,040 10,276,325
Jealeh (service contracts) 7,764,152 67,738 968 1,649,260 9,482,118
Hire purchase 371,871 3,830 105 1,814,467 2,190,273
Salaf (future contracts) 25,336 0 0 28,858 54,194
Murabahah (Sale contracts) 86,771 0 0 480 87,251
Interest free loan (Qarzolhasaneh) 759,740 2,515 1,511 520 764,286
Muzarabah (trade contracts) 9,035,698 451,095 439,233 3,882,571 13,808,597
Civil partnership-(Mosharakat Madani) 80,769,659 1,420,563 3,004,359 12,525,355 97,719,936
Factoring 5,235,746 0 0 1,047,389 6,283,135
Other loans granted in rial 0 0 0 0 0
Estesna'a 0 0 0 0 0
Loans granted in forex 2,462,479 0 0 2,359,212 4,821,691
Debtors of LCs paid 746,634 1,621,476 2,368,110
Debtors of LGs paid 338,006 310,608 648,614
Debtors for credit cards paid 38,366 0 0 0 38,366
117,734,455 1,948,554 3,448,651 25,411,236 148,542,896
Less:
Unrealized interest (5,288,616) (5,288,616)
Deferred Interest and fee (195,884) (520,570) (4,555,434) (5,271,888)
Joint Civil partnership (3,736,998) 0 0 0 (3,736,998)
Amounts received for Muzarabah (trade contracts) (282,680) 0 0 0 (282,680)
Net loans granted before deducting provision fordoubtful debts
108,426,161 1,752,670 2,928,081 20,855,802 133,962,714
General provision for doubtful debts (1,779,761) 0 0 0 (1,779,761)
specific provision for doubtful debts (62,254) (41,326) (4,329,172) (4,432,752)
Balance at March 20, 2017 106,646,400 1,690,416 2,886,755 16,526,630 127,750,201
Balance at March 19, 2016 105,528,360 1,366,688 2,754,802 17,338,137 126,987,987
11-5- Provision for doubtful debts of the parent company breaks down as follows:
March 20, 2017 March 19, 2016
Generalprovision Specific provision Total General
provision Specific provision Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Balance at the beginning of the year 1,779,761 4,132,752 5,912,513 1,688,488 3,649,285 5,337,773
Bad debts (Written-off) 0 0 0 0 (191,216) (191,216)
Provision for current year 0 300,000 300,000 91,273 674,686 765,959
Balance at the year-end 1,779,761 4,432,752 6,212,513 1,779,761 4,132,755 5,912,516
11-6- Loans granted by the parent company in foreign currency by a breakdown of
payment resources
March 20, 2017 March 19, 2016
Current Overdue Outstanding Doubtful Total Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Local resources 2,462,478 0 0 2,288,268 4,750,746 4,965,833
Forex reserve account 0 0 0 70,945 70,945 70,945
National Development Fund 0 0 0 0 0 1,297
Syndicated loans 0 0 0 0 0 0
2,462,478 0 0 2,359,213 4,821,691 5,038,075
March 20, 2017 March 19, 2016
Over 24% 21 to 24% 18 to 21% 15 to 18% 12 to 15% 12% and less Total Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
2016 and before 16,537,786 3,512,439 1,915,465 631,649 3,205,887 2,725,691 28,528,917 27,632,649
2017 15,468,171 4,334,745 4,561,741 5,222,172 246,625 516,623 30,350,077 34,671,957
2018 7,304,539 10,226,683 4,739,548 25,457,068 841,275 2,206,701 50,775,814 47,589,809
2019 1,999,962 1,943,957 3,889,652 675,920 31,137 65,540 8,606,168 5,910,793
2020 2,515,896 643,760 24,224 1,400,541 51,133 74,626 4,710,180 8,883,015
2021 618,402 803,789 42,126 582,308 32,275 674,196 2,753,096 3,770,492
2022 and onward 356,215 128,567 9,650 1,849,196 420,263 5,474,556 8,238,447 4,441,785
44,800,971 21,593,940 15,182,406 35,818,854 4,828,595 11,737,933 133,962,699 132,900,500
March 19, 2016 61,136,372 48,941,338 9,812,257 1,649,754 4,547,196 6,813,583 132,900,500
11-7- Loans granted to and amounts due from non-governmental entities/persons in
terms of maturities and interest rates
84 85Financial Report
2017
Rls (M)
Deposit 5,461,491
Participation bonds and other debt securities guaranteed by the government 0
Participation bonds and other debt securities guaranteed by other banks 6,761
Banking letters of guarantee 6,295
Letters of credit transacted 3,363,844
Shares listed on the stock exchange 2,044,870
Land, buildings and machinary 37,748,240
Checks and promissary notes 69,314,756
Binding/irrevocable contracts 7,981,353
Other 8,035,104
133,962,714
Unsecured loans and claims (without security) 0
133,962,714
11-8- Loans granted to and amounts due from non-governmental entities/persons
by a breakdown of the type of collateral
11-8-1- The information for the year 2015 could not be provided since the detailed description of collaterals was not available.
• The
inte
rest
on
loan
s in
clud
ed th
e in
tere
st o
n lo
ans
gran
ted
and
late
pay
men
t pen
alty
. The
am
ount
incr
ease
d du
ring
the
peri
od in
clud
ed th
e ac
crue
d an
d ca
sh in
tere
sts
aand
the
amou
nts
colle
cted
con
sist
ed o
f the
co
llect
ed p
ortio
n of
acc
rued
and
cas
h in
tere
sts
duri
ng th
e pe
riod
.
Sale
s by
in
stal
lmen
ts
Jeal
eh
(ser
vice
co
ntra
cts)
Hir
e pu
chas
e
Sala
f (f
utur
e co
ntra
cts)
Mur
abah
ahCi
vil
part
ners
hip
Fact
orin
gM
urab
ahah
(S
ale
cont
ract
s)
Este
sna'
e (C
ontr
acts
of
Exch
ange
)
Fre
ein
tere
st
Oth
er lo
ans
gra
nted
in r
ial
Loa
ns g
rant
ed in
fore
x
Deb
tors
of p
aid
lett
ers
ofcr
edit
Deb
tors
of p
aid
lett
ers
ofgu
aran
tee
Deb
tors
of p
aid
cre
dit
card
s
Tota
l
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Pri
ncip
al lo
an a
mou
nts
Bal
ance
at M
arch
19,
201
6 4
,719
,401
2
,959
,158
1
,940
,857
2
6,25
4 9
,448
,564
7
7,58
3,12
8 4
68,7
24
37,
052
0 1
40,9
70
0
4,0
45,5
92
2,5
22,1
56
1,0
43,0
82
9,2
14
104
,944
,152
Gra
nted
dur
ing
the
year
1,3
60,1
68
10,
853,
672
35,
309
0 3
,379
,178
2
48,7
79,7
32
121
,879
7
9,17
6
0 7
16,9
80
0
8,5
37,8
39
7,2
31,6
47
1,7
28,8
71
126
,866
2
82,9
51,3
17
Col
lect
ed d
urin
g th
e ye
ar(1
92,1
36)
(6,8
04,6
04)
(104
,571
) 0
(5,7
76,5
50)
(254
,165
,954
)(4
,309
)(4
5,97
7) 0
(93,
665)
0(8
,677
,153
)(8
,049
,486
)(2
,370
,402
)(9
7,71
5)(2
86,3
82,5
22)
Effe
ct o
f for
ex e
xcha
nge
rate
sdu
ring
the
peri
od 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0
Bal
ance
at M
arch
20,
201
7 5
,887
,433
7
,008
,226
1
,871
,595
2
6,25
4 7
,051
,192
72,1
96,9
06
586,
294
70,
251
0
764
,285
0 3
,906
,278
1
,704
,317
4
01,5
51
38,
365
101
,512
,947
Inte
rest
on
loan
s gr
ante
d
Bal
ance
at M
arch
19,
201
6 1
39,5
76
459
,612
2
16,1
91
1,7
73
5,3
13,8
09
18,
876,
074
4,4
28,3
66
625
0 0
0
1,0
27,8
51
556
,189
3
02,4
52
0 3
1,32
2,51
8
Incr
ease
d du
ring
the
year
768
,906
2
99,4
42
73,
712
23,
526
2,9
17,2
46
16,
618,
048
958
,490
3
,432
0
0
0 4
41,7
38
104
,502
1
3,35
7 0
22,
222,
399
Col
lect
ed d
urin
g th
e ye
ar(8
6,21
3)(2
46,1
98)
(8,7
55)
0(2
,064
,284
)(1
3,75
3,13
2)(2
87,5
70)
(2,9
89)
0 0
0(5
54,1
78)
(3,4
05)
(68,
746)
0(1
7,07
5,47
0)
Effe
ct o
f for
ex e
xcha
nge
rate
sdu
ring
the
peri
od 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0
Bal
ance
at M
arch
20,
201
7 8
22,2
69
512,
856
281
,148
2
5,29
9 6
,166
,771
2
1,74
0,99
0 5
,099
,286
1
,068
0 0
0
915
,411
6
57,2
86
247
,063
0
36,
469,
447
Prov
isio
n fo
r do
ubtf
ul d
ebts
Bal
ance
at M
arch
19,
201
6(5
8,18
3)(1
6,32
0)(6
4,00
6)(1
3,47
9)(9
44,4
51)
(3,6
23,3
07)
(27,
913)
0 0
0 0
(35,
367)
(1,0
16,5
21)
(112
,966
) 0
(5,9
12,5
13)
Incr
ease
d du
ring
the
year
0 0
0 0
0(3
00,0
00)
0 0
0 0
0 0
0 0
0(3
00,0
00)
Bad
deb
ts (w
ritte
n-of
f) du
ring
the
year
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Bal
ance
at M
arch
20,
201
7(5
8,18
3)(1
6,32
0)(6
4,00
6)(1
3,47
9)(9
44,4
51)
(3,9
23,3
07)
(27,
913)
0 0
0 0
(35,
367)
(1,0
16,5
21)
(112
,966
) 0
(6,2
12,5
13)
Am
ount
s re
ceiv
ed fo
r M
uzar
abeh
(tra
de co
ntra
cts)
Bal
ance
at M
arch
19,
201
6 0
0 0
0(3
06,5
73)
0 0
0 0
0 0
0 0
0 0
(306
,573
)
Bal
ance
at M
arch
20,
201
7 0
0 0
0(2
82,6
81)
0 0
0 0
0 0
0 0
0 0
(282
,681
)
Join
t civ
il pa
rtne
rshi
p ac
coun
t
Bal
ance
at M
arch
19,
201
6 0
0 0
0 0
(3,0
59,5
97)
0 0
0 0
0 0
0 0
0(3
,059
,597
)
Bal
ance
at M
arch
20,
201
7 0
0 0
0 0
(3,7
36,9
99)
0 0
0 0
0 0
0 0
0(3
,736
,999
)
Net
loan
s gr
ante
d
Bal
ance
at M
arch
19,
201
6 4
,800
,794
3
,402
,450
2
,093
,042
1
4,54
8 1
3,51
1,34
9 8
9,77
6,29
8 4
,869
,177
3
7,67
7 0
140
,970
0
5,0
38,0
76
2,0
61,8
24
1,2
32,5
68
9,2
14
126
,987
,987
Bal
ance
at M
arch
20,
201
7 6
,651
,519
7
,504
,762
2
,088
,737
3
8,07
4 1
1,99
0,83
1 8
6,27
7,59
0 5
,657
,667
7
1,31
9 0
764
,285
0
4,7
86,3
22
1,3
45,0
82
535
,648
3
8,36
5 1
27,7
50,2
01
11
-9-
Tu
rno
ve
r o
f lo
an
s g
ran
ted
to
an
d a
mo
un
ts d
ue
fro
m n
on
-go
ve
rnm
en
tal
en
titi
es/p
ers
on
s
86 87Financial Report
11
-10
- T
urn
ove
r o
f in
tere
sts
accru
ed
on
th
e l
oa
ns g
ran
ted
to
an
d a
mo
un
ts d
ue
fro
m n
on
-go
ve
rnm
en
tal
en
titi
es/p
ers
on
s
Sale
s by
in
stal
lmen
ts
Jeal
eh
(ser
vice
co
ntra
cts)
Hir
e pu
chas
e
Sala
f (f
utur
e co
ntra
cts)
Mur
abah
ahCi
vil
part
ners
hip
Fact
orin
gM
urab
ahah
(S
ale
cont
ract
s)
Este
sna'
e (C
ontr
acts
of
Exch
ange
)
Fre
ein
tere
st
Oth
er lo
ans
gra
nted
in r
ial
Loa
ns g
rant
ed in
fore
x
Deb
tors
of
pai
d le
tter
sof
cre
dit
Deb
tors
of p
aid
lett
ers
ofgu
aran
tee
Deb
tors
of p
aid
cre
dit
card
s
Tota
l
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Inte
rest
rec
eiva
ble
on lo
ans
gran
ted
Bal
ance
at M
arch
19,
201
6 1
39,4
16
312
,655
3
,963
1
,775
1
,229
,856
8
,471
,333
4
84,3
79
625
0
00
430
,867
4
17,0
20
1,3
33
0 1
1,49
3,22
2
Incr
ease
d du
ring
the
year
744
,926
2
21,6
67
10,
396
0 1
,350
,772
1
2,21
3,08
2 8
,020
2
,939
0
00
173
,102
1
04,5
02
00
14,
829,
406
Col
lect
ed d
urin
g th
e ye
ar(8
5,75
0)(2
13,8
10)
(8,4
43)
0(1
,063
,782
)(1
0,14
4,86
9)(3
3,14
0)(2
,724
)0
00
(256
,176
)(3
,405
)0
0(1
1,81
2,09
9)
Effe
ct o
f for
eign
exc
hang
e ra
tedu
ring
the
peri
od0
00
00
00
00
00
00
00
0
Bal
ance
at M
arch
20,
201
7 7
98,5
92
320
,512
5,9
16
1,7
75 1
,516
,846
10,
539,
546
459,
259
840
0
0 0
347
,793
5
18,1
17
1,3
33
0 1
4,51
0,52
9
Lat
e pe
nalt
ies
for
loan
sgr
ante
d
Bal
ance
at M
arch
19,
201
6 1
62
146
,960
2
12,2
30
0 4
,083
,954
1
0,40
4,74
1 3
,943
,986
0
0 0
0 5
96,9
83
139
,168
3
01,1
18
0 1
9,82
9,30
2
Incr
ease
d du
ring
the
year
23,
980
77,
775
63,
316
23,
526
1,3
97,8
86
3,7
38,7
23
950
,470
4
93
0 0
0 2
68,6
35
0 1
3,35
7 0
6,5
58,1
61
Col
lect
ed d
urin
g th
e ye
ar(4
64)
(32,
389)
(312
) 0
(831
,916
)(2
,942
,020
)(2
54,4
30)
(266
) 0
0 0
(298
,002
) 0
(68,
746)
0(4
,428
,545
)
Effe
ct o
f for
eign
exc
hang
e ra
tedu
ring
the
peri
od0
00
00
00
0 0
0 0
0 0
00
0
Bal
ance
at M
arch
20,
201
7 2
3,67
8 1
92,3
46 2
75,2
34
23,
526
4,6
49,9
24
11,
201,
444
4,6
40,0
26
227
0
00
567
,616
1
39,1
68
245
,729
0
21,
958,
918
Inte
rest
s on
loan
s gr
ante
d
Bal
ance
at M
arch
19,
201
6 1
39,5
78
459
,615
2
16,1
93
1,7
75
5,3
13,8
10
18,
876,
074
4,4
28,3
65
625
0
0 0
1,0
27,8
50
556
,188
3
02,4
51
0 3
1,32
2,52
4
Bal
ance
at M
arch
20,
201
7 8
22,2
70
512
,858
2
81,1
50
25,
301
6,1
66,7
70
21,
740,
990
5,0
99,2
85
1,0
67
0 0
0 9
15,4
09
657
,285
2
47,0
62
0 3
6,46
9,44
7 11-11- Loans granted to and amounts due from non-governmental entities/personsby
a breakdown of customer type
11-12- Loans granted by the Group to the affiliated companies are as follow
11-13- Loans granted by the parent company to subsidiaries and affiliates are as follows
March 20, 2017 March 19, 2016
Gross amount Provision fordoubtful debts Net Gross amount Provision for
doubtful debts Net
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Natural customers 35,664,829 (649,016) 35,015,813 37,450,179 (649,017) 36,801,162
Legal customers 95,214,917 (5,563,497) 89,651,420 92,936,331 (5,263,499) 87,672,832
Personnel 3,082,968 0 3,082,968 2,513,993 0 2,513,993
133,962,714 (6,212,513) 127,750,201 132,900,503 (5,912,516) 126,987,987
Group
March 20, 2017 March 19, 2016
Interest rates Current Non-current Provision for
doubtful debts Total Net
Percentage Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Related parties
Adonis Co. 18-24 93,220 0 (1,399) 91,821 69,826
Saman Kish ElectronicPayment Co. 18 83,703 0 (1,256) 82,447 0
176,923 0 (2,655) 174,268 69,826
Parent Company
March 20, 2017 March 19, 2016
Interest Current Non-current Provision fordoubtful debts Total Total
Group companies Percentage Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Saman Kish Electronic Payment Co. 0 0 0 0 181,780
Saman Satellite Communications Co. 18 43,077 0 (647) 42,430 15
Saman Pardazeshgaran Co. (Processing) 0 0 0 0 9,694
Saman Brokerage Co. 15-18 111,153 0 (1,668) 109,485 27,616
Sepehr Mehr 22 67,003 0 (1,006) 65,997 77,015
Other related perties
Adonis Co. 18-24 93,220 0 (1,399) 91,821 69,826
Saman Kish Electronic Payment Co. 18 83,703 0 (1,256) 82,447 0
398,156 0 (5,976) 392,180 365,946
88 89Financial Report
12- Investments in shares and other securities
Group
March 20, 2017 March 19, 2016
Note Current Long-term Total Current Long-term Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Investment in quickly marketableshares
401,219 84,942 486,161 634,690 84,929 719,619
Investment in other shares/stocks 12-2 0 422,896 422,896 0 251,387 251,387
Investment in other securities 11,730 132,134 143,864 473,257 87,131 560,388
412,949 639,972 1,052,921 1,107,947 423,447 1,531,394
Parent company
March 20, 2017 March 19, 2016
Note Current Long-term Total Current Long-term Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Investment in quickly marketableshares
12-1 397,384 84,942 482,326 634,050 84,929 718,979
Investment in other shares/stocks 12-2 0 2,166,433 2,166,433 0 1,975,654 1,975,654
Investment in other securities 12-3 0 129,034 129,034 458,903 85,031 543,934
397,384 2,380,409 2,777,793 1,092,953 2,145,614 3,238,567
12-1- Parent company’s investments in quickly marketable shares are as follows:
12-1-1- Current investments in quickly marketable shares
Shares of listed companiesIsfahan Mubarakeh Steel Mill Purchase 16,456,434 0.02 20,072 22,948 9,604 8,789
Iran Construction Investment Co. Purchase 8,911,790 0.82 33,259 21,318 37,620 40,272
Iran Telecommunication Purchase 4,899 0.00 15 11 144 144
Sina Bank Purchase 19,277,199 0.19 33,306 19,422 31,871 30,506
Shomal Drilling Co. Purchase 2,171,445 0.08 11,492 7,227 71,537 54,607
MAPNA Purchase 7,377,750 0.07 59,265 55,508 54,781 65,184
Azar Ab Purchase - - 0 0 4,995 5,241
Bank Mellat Purchase 6,852,952 0.014 13,448 7,494 15,828 15,208
Iranian Leasing Purchase 29,493,077 2.95 56,198 45,214 58,791 44,356
Sepah Investment Purchase - - 0 0 52,753 31,093
Saderat Bank Purchase 11,600,000 0.020 12,884 10,389 12,884 12,192
Passargad Bank Purchase - - 0 0 56,603 33,676
Tooka Foulad Investment Co. Purchase 43,522,499 1.67 58,654 52,206 37,945 37,962
Tooka Foulad Investment Co. - rights issue Purchase 6,750,000 - 2,346 1,235 0 0
Bahman Group Purchase 14,920,000 0.29 35,268 26,254 44,007 58,259
Sahand Tire Manufacturing (Lastik) Purchase - - 0 0 4,871 4,061
Kharazmi Investment Purchase 30,000,000 0.24 42,158 23,871 60,327 55,871
Tooka Transport Purchase 8,998,711 2.73 19,935 25,498 28,865 32,161
Tractor Manufacturing Co. Purchase - - 0 0 3,268 3,000
Fajr Petrochemical Co. Purchase - - 0 0 8,228 7,894
Piazar Agro-Industry Co. Purchase - - 0 0 1,911 1,653
Oil Industry Purchase 1,000,000 - 2,504 1,783 0 0
Mines and Metals Investment Development Co. Purchase - - 0 0 10,851 5,786
Alborz Insurance Purchase - - 0 0 1,313 1,150
Iran Khodro Purchase 3,154,455 - 10,291 8,135 24,895 35,850
Shahed Investment Purchase - - 0 0 2,705 2,817
Iran Khodro Investment Development Co. Purchase 500,000 0.02 2,388 1,745 9,533 10,659
Mobin Petrochemical Co. Purchase - - 0 0 2,059 1,975
Bahman Investment Co. Purchase - - 0 0 2,742 2,794
Mellat Leasing Purchase - - 0 0 0 0
Ansar - Rights issue Purchase 6,481 - 7 4 0 0
Shiraz Petrochemical Co. - Urine salaf Purchase 2,000 - 14,037 16,159 0 0
Informatic services Purchase 144,757 0.005 2,702 2,723 0 0
430,229 349,144 650,931 603,160
Shares of listed companies onFarabourse (OTC)
Tooka Rail Purchase 19,186,128 0.96 50,318 40,161 30,248 29,387
Tooka Refractory Industries Purchase - - 0 0 1,007 916
Shahid Civil and Development Co. Purchase - - 0 0 129 133
Damavand Power Generation Purchase - - 0 0 223 241
Khavarmianeh Life Insurance Purchase 200,000 - 100 98 100 197
Tehran Housing Purchase - - 0 0 0 0
Alhavi Pharmaceutical Co. Purchase 1,277,010 0.35 6,204 5,366 0 0
Taliseh Nemouneh Purchase 189,860 0.27 1,628 1,674 0 0
A.S.P. Purchase 932,047 0.12 1,120 926 0 0
59,370 48,225 31,707 30,874
489,599 397,369 682,638 634,034
Added (Less)
Cost price adjustment (92,215) 0 (48,588) 0
397,384 397,369 634,050 634,034
March 20, 2017 March 19, 2016
Origin Number ofshares Investment Cost Net sale
value Cost Net salevalue
Percentage Rls (M) Rls (M) Rls (M) Rls (M)
90 91Financial Report
12
-1-2
- L
on
g-t
erm
in
ve
stm
en
ts in
qu
ick
ly m
ark
eta
ble
sh
are
s
Mar
ch 2
0, 2
017
Mar
ch 1
9, 2
016
Ori
gin
Inve
stm
ent
perc
enta
ge N
umbe
r of
shar
esCo
st A
ccum
ulat
edva
lue
impa
irm
ent
Net
boo
k va
lue
Mar
ket v
alue
Net
boo
k va
lue
Mar
ket v
alue
Pe
rce
nta
ge
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Shar
es o
f com
pani
es li
sted
on
the
stoc
k ex
chan
ge
Iran
Pum
p M
anuf
actu
ring
Co.
Pur
chas
e 2
.28
9,12
0,85
94,
703
04,
704
25,8
944,
704
18,9
17
Ham
edan
Gla
ss W
orks
Pur
chas
e 4
.59
13,2
08,4
1879
,978
079
,978
106,
724
79,9
7811
1,76
9
Pla
stir
anP
urch
ase
0.5
430
9,53
557
5(3
16)
260
260
247
247
Shar
es o
f com
pani
es li
sted
on
Fara
bour
se C
o. (O
TC)
00
00
00
00
0
85,2
56(3
16)
84,9
4213
2,87
884
,929
130,
933
12
-2-
Inve
stm
ents
in o
ther
sha
res
are
as fo
llow
s:
12
-2-1
- In
vest
men
ts in
oth
er s
hare
s by
this
ban
k al
l inc
lude
long
-ter
m in
vest
men
ts w
hile
cur
rent
inve
stm
ents
are
pra
ctic
ally
non
-exi
sten
t.
12
-2-2
- L
on
g-t
erm
in
ve
stm
en
t in
oth
er
sh
are
s
Gro
up
Ma
rch
20
, 2
01
7M
arc
h 1
9, 2
01
6
Orig
in N
um
be
r o
f
sh
are
s I
nve
stm
en
tC
os
t
Accu
mu
late
d
va
lue
imp
air
me
nt
Ne
t b
oo
k
va
lue
Ma
rk
et
va
lue
Ne
t b
oo
k
va
lue
Ma
rk
et
va
lue
pe
rce
nta
ge
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sam
an In
sura
nce
Esta
blis
hmen
t 1
19,1
91,5
32
15 9
6,60
0 0
96,
600
0 9
6,60
0 0
Cen
tral
Sec
uriti
es D
epos
itory
and
Set
tlem
ent C
o.P
urch
ase
15,
950,
000
3 7
,975
0
7,9
75
0 7
,975
0
Iran
Inve
stm
ent C
o.P
urch
ase
15,
050,
000
0 1
5,05
0 0
15,
050
0 1
5,05
0 0
Iran
Cre
dit R
atin
g C
o.P
urch
ase
321
,082
6
3,2
43
0 3
,243
0
3,2
43
0
Stoc
k Ex
chan
ge C
o.P
urch
ase
1,2
41,6
65
0.1
155
0
155
0
155
0
Iran
Ene
rgy
Exch
ange
Pur
chas
e 6
,195
,000
0.
8 6
,140
0
6,1
40
0 6
,140
0
Afta
b Te
jara
t Sam
an C
o.Es
tabl
ishm
ent
1,5
20
15 5
0
5
0 5
0
Mid
dle
East
Ban
kP
urch
ase
and
owne
rshi
p 1
26,3
07,8
34
2.5
212
,108
0
212
,108
0
40,
567
0
Shap
arak
Ele
ctro
nic
Pay
men
t Co.
Pur
chas
e 2
2,30
4,00
0 1
9,3
15
0 9
,315
0
9,3
15
0
Sam
an In
vest
men
t Dev
elop
men
t Co.
Pur
chas
e 1
89,5
22
0 1
01
0 1
01
0 1
01
0
Atie
h Al
borz
Tra
ding
Dev
elop
men
tP
urch
ase
9,9
90
99.9
10
0 1
0 0
0
Tose
e O
mid
Atie
h An
dish
Co.
Pur
chas
e 7
5,10
0 -
75
0 7
5 0
75
0
Sam
aneh
Kis
h El
ectr
onic
Dev
elop
men
t Co.
00
0 0
0 0
(3)
0
Atie
h An
dish
an S
epeh
r Sh
argh
Info
rmat
ion
Tech
nolo
gy 0
0 0
0 0
0 1
0 0
Kis
h C
ell P
ars
00
0 0
0 0
10
0
Iran
Far
abou
rse
Pur
chas
e 7
0,00
0 0.
02 6
0 0
60
0 3
0 0
Info
rmat
ion
Serv
ices
Co.
Pur
chas
e 4
90
0 4
90
0 4
90
0 4
90
0
Sarv
Zar
rin
Atla
sP
urch
ase
49
49 4
90
0 4
90
0 5
00
0
Per
sian
Gul
f Tra
ding
Co.
Pur
chas
e 4
80
48 5
0
5
0
- 0
Sega
l Sof
twar
e C
o.P
urch
ase
2,6
72,0
00
0.03
2,6
74
0 2
,674
0
2,6
74
0
Mid
dle
Eash
t Ari
an R
oll
00
-
0 0
0 5
0 0
354
,496
0
354
,496
0
182
,987
0
Adde
d:
Inve
stm
ent p
repa
ymen
t in
C.I.
P. s
hare
s (Ir
ania
n P
ars
Tech
nolo
gy)
68,
400
068
,400
0 6
8,40
0 0
422,
896
042
2,89
6 0
251,
387
0
92 93Financial Report
Pare
nt C
ompa
ny
Ma
rch
20
, 2
01
7M
arc
h 1
9, 2
01
6
Orig
in N
um
be
r o
f
sh
are
s I
nve
stm
en
tC
os
t
Accu
mu
late
d
va
lue
imp
air
me
nt
Ne
t b
oo
k
va
lue
Ma
rk
et
va
lue
Ne
t b
oo
k
va
lue
Ma
rk
et
va
lue
pe
rce
nta
ge
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sam
an S
atel
ite C
omm
unic
atio
n C
o.Es
tabl
ishm
ent
96,
155,
556
48 1
12,5
29
011
2,52
90
112,
529
0
Sam
an E
xcha
nge
Co.
Esta
blis
hmen
t 2
1,12
5,00
0 96
214
,625
0
214,
625
021
4,62
50
Sam
an E
lect
roni
c P
aym
ent C
o.Es
tabl
ishm
ent
500
,998
,179
28
587
,147
0
587,
147
078
9,85
90
Sam
an In
sura
nce
Co.
Esta
blis
hmen
t 1
19,1
91,5
32
15 9
6,60
0 0
96,6
000
96,6
000
Sam
an B
roke
rage
Co.
Pur
chas
e 3
1,99
9,00
0 64
40,
561
040
,561
027
,762
0
Cen
tral
Sec
uriti
es D
epos
itory
and
Set
tlem
ent C
o.P
urch
ase
15,
950,
000
3 7
,975
0
7,97
50
7,97
50
Iran
Inve
stm
ent C
o.P
urch
ase
15,
050,
000
0 1
5,05
0 0
15,0
500
15,0
500
Iran
Cre
dit R
atin
g C
o.P
urch
ase
321
,082
6
3,2
43
03,
243
03,
243
0
Stoc
k Ex
chan
ge C
o.P
urch
ase
874
,999
0
105
0
105
010
50
Haf
ez S
aman
Iran
ian
Cre
dit S
cori
ng C
o.P
urch
ase
and
owne
rshi
p 4
9,00
0,00
0 99
54,
736
(8,3
31)
46,4
050
46,4
050
Par
daze
shga
ran
Sam
an C
o. (P
roce
ssin
g)Es
tabl
ishm
ent
100
,000
,000
10
0 1
03,4
73
010
3,47
30
134,
973
0
Atie
h An
dish
an S
epeh
r Sh
argh
Co.
Esta
blis
hmen
t 9
,970
10
0 1
0 0
100
100
Iran
Ene
rgy
Exch
ange
Pur
chas
e 4
,566
,000
1
4,5
65
04,
565
04,
565
0
Afta
b Te
jara
t Sam
an C
o.Es
tabl
ishm
ent
1,5
00
15 5
0
50
50
Mid
dle
East
Ban
kP
urch
ase
and
owne
rshi
p 1
21,9
82,8
34
2 2
07,2
17
020
7,21
70
35,7
000
Shap
arak
Ele
ctro
nic
Pay
men
t Co.
Pur
chas
e 2
2,30
4,00
0 1
9,3
15
09,
315
09,
315
0
Kar
dan
Inve
stm
ent B
ank
Esta
blis
hmen
t 6
46,6
66,4
00
32 6
49,2
08
064
9,20
80
408,
533
0
2,1
06,3
64(8
,331
) 2
,098
,033
0
1,9
07,2
54
0
Adde
d:
Inve
stm
ent p
repa
ymen
t in
C.I.
P. s
hare
s (Ir
ania
n P
ars
Tech
nolo
gy)
68,
400
068
,400
068
,400
0
2,17
4,76
4(8
,331
)2,
166,
433
01,
975,
654
0
Domiciale Invesment percentage Auditing firm Main activities
GroupParent
Company
Subsidiaries
Saman Brokerage Co. Tehran 64 64 Sokhan Hagh Investment, brokerage and financial services
Hafez Saman Iranian Credit Scoring Co. Tehran 99.15 99.15 Sokhan Hagh Providing information on scoring and creditrating services
Tondar Noor Tehran 100 0 Sokhan Hagh Scientific and research activities in computer, development and sale of software
Saman Exchange Co. Tehran 96.46 96.46 Azmoon Pardaz Trading types of foreign currency
Saman Satelite Communication Co. Tehran 61.85 48.08 Azmoon Pardaz Providing services for data transfer,communication and satellite telecommunication
Pardazeshgaran Saman Tehran 100 100 Sokhan Hagh Design, development and support of corebanking-based products, applications and tools
Atieh Andishan Sepehr Shargh Co. Tehran 100 99.7 Bayat Rayan Provision of technical and engineering services
Atieh Andishan Sepehr SharghServices Development" Ajabshir 100 0 Bayat Rayan Production of iron ingots from iron scrappings
Atieh Andishan Sepehr Mehr Co. Tehran 100 0 Bayat Rayan Provision of technical and engineering services, purchase and sale of all authorized goods andcommodities
Affiliates
Kardan Investment Bank Tehran 33.3 32.3 Tadvin & Co. Investment, subscription, securitiesunderwriting
Saman Electronic Payment Co. Tehran 43.04 27.8 Sokhan Hagh Provision of E-payment services
Adonis Electronic Services Co. Tehran 24.19 0 Mokhtar & Co. Provision of services in IT, computer devices,electronic and telecommunication equipment
12-2-3- Particulars of Saman Bank subsidiary and affiliated companies are as follows:
12-3- Investments in other securities by the parent company are as follows:
Issuer Origin Type of security Interest rate 2017 2016
Percentage Rls (M) Rls (M)
Government and state-run corporations
Government Purchase Islamic treasury bonds - 0 458,902
Banks
- - - 0 0
Other companies and mutual funds
Novin Saman Fixed-Income Fund Establishment Privileged investment unit 19 15,000 15,000
Saman Joint Venture Fund - Yekom Establishment Ordinary and privileged
investment unit 15,000 15,000
Agah Charity Fund - Yekom Establishment Privileged investment unit 2,500 2,500
Amin Saman Mutual Fund Establishment Privileged investment unit 16 10,000 10,000
Iran Capital Market Development Mutual Fund Establishment Ordinary investment unit 35,000 35,000
Aghigh Mutual Fund Ordinary investment unit 0 4,998
Nik-Andishan Honar Charity Mutual Fund Purchase Ordinary investment unit 2,534 2,534
Negin Saman Fixed-Income Fund (in the formation process)
Establishment Privileged investment unit 18 49,000 0
129,034 543,934
94 95Financial Report
Group
Share of netassets Goodwill Share of total
net assets
Rls (M) Rls (M) Rls (M)
Balance at the beginning of the year 624,175 0 624,175
Asquisition during the year 828,809 121,363 950,172
Partial payment of subscribed capital 235,775 0 235,775
Share of profit in affiliates before goodwill depreciation 183,410 0 183,410
Dividends received or receivable during the year (190,492) 0 (190,492)
Goodwil depreciation 0 (12,053) (12,053)
1,681,677 109,310 1,790,987
13- Long-term investments in affiliated companies
14- Amounts due from subsidiaries and affiliates
Group
March 20, 2017 March 19, 2016
Balance due Doubtful debts
provisionNet Net
Rls (M) Rls (M) Rls (M) Rls (M)
Due from subsidiaries 73,868 0 73,868 71,677
Due from affiliates 513,465 0 513,465 10,521
587,333 0 587,333 82,198
Parent company
March 20, 2017 March 19, 2016
Balance
due
Doubtful debts
provisionNet Net
Rls (M) Rls (M) Rls (M) Rls (M)
Due from subsidiaries 2,800,881 0 2,800,881 1,020,001
Due from affiliates 778,065 0 778,065 10,521
3,578,946 0 3,578,946 1,030,522
14-1- Considering the fact that the fiscal year of Group Companies will end on 21st December of each year (end of Azar based on the Iranian calendar year) namely three months earlier than the end of the bank’s fiscal year, the amounts due from subsidiaries have not been entirely eliminated in consolidated operations. Whereas such amounts do not affect the consolidated financial statements in their entirety, adjustments have not been therein made (in accordance with the accounting standards).
14-2- The balance of the parent company’s amounts due from subsidiaries and affiliates based on the inter-group transactions consists of the following:
March 20, 2017
Name of subsidiary/affiliate Assets andinvestments sold
Assets and investments
purchased
Services purchased
Provisional amounts
received
(on-account)
Provisional amounts paid
(on-account)
Iner-group interest-free
loans
Dividendsrecievable
Dividendspayable
Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Saman Exchange Co. 0 0 5,563 0 2,246 0 284,560 0 292,369
Hafez Saman Iranian Credit ScoringCo. 0 0 0 0 24,913 0 54,532 0 79,445
Saman Kish Electronic Payment Co. 0 0 0 0 7,100 0 504,312 0 511,412
Pardazeshgaran Saman (processing 0 62,423 0 0 116,396 0 31,500 0 210,319
Saman Brokerage Co. 0 0 0 0 358 0 4,799 0 5,157
Adonis Co. 0 0 2,025 0 29 0 0 0 2,054
Satelite Communication Co. 0 0 0 0 1,881 0 32,694 0 34,575
Atieh Andishan Sepehr Shargh 0 1,970,675 0 0 30 0 2,518 0 1,973,223
Atieh Andishan Sepehr Mehr 0 0 0 0 5,792 0 0 0 5,792
Kardan Investment Bank 0 0 0 0 0 0 264,600 0 264,600
Atieh Andishan Sepehr Shargh Services Development 0 0 0 0 200,000 0 0 0 200,000
0 2,033,098 7,588 0 358,745 0 1,179,515 0 3,578,946
Net transactions gain (loss) 0
March 19, 2016
Name of subsidiary/affiliate Assets andinvestments sold
Assets and investments
purchased
Services purchased
Provisional amounts
received
(on-account)
Provisional amounts paid
(on-account)
Iner-group interest-free
loans
Dividendsrecievable
Dividendspayable
Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Saman Exchange Co. 0 0 14,973 0 3,958 0 120,576 (84) 139,423
Hafez Saman Iranian Credit ScoringCo.
0 0 806 0 79,486 0 19,830 0 100,122
Saman Kish Electronic Payment Co.
0 0 227 0 48 0 596,005 0 596,280
Pardazeshgaran Saman (processing)
0 62,423 0 0 20,241 0 9,000 0 91,664
Saman Brokerage Co. 47,273 0 0 0 13 0 14,335 0 61,621
Adonis Co. 0 3,408 2,064 0 5,048 0 0 0 10,520
Satelite Communication Co. 0 0 295 0 2,660 0 22,115 0 25,070
Atieh Andishan Sepehr Shargh 0 0 0 0 12 0 18 0 30
Atieh Andishan Sepehr Mehr 0 0 0 0 5,792 0 0 0 5,792
47,273 65,831 18,365 0 117,258 0 781,879 (84) 1,030,522
Net transactions gain (loss) 0
96 97Financial Report
15- Other accounts receivable
Group
March 20, 2017 March 19, 2016
Balancedue
Specific provision fordoubtful debts
General provisionfor doubtful debts Net Net
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Dividends receivable from companies 212,394 0 0 212,394 191,963
Temporary debtors 7,540,355 (268,163) (14,718) 7,257,474 6,641,474
7,752,749 (268,163) (14,718) 7,469,868 6,833,437
Parent company
Note March 20, 2017 March 19, 2016
Balancedue
Specific provision fordoubtful debts
General provisionfor doubtful debts Net Net
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Dividends receivable fromcompanies 15-1 192,044 0 0 192,044 165,696
Temporary debtors 15-2 5,922,470 (154,052) (14,718) 5,753,700 5,485,970
Interest accrued on participationbonds 0 0 0 0 0
Amounts due from personnel 0 0 0 0 0
6,114,514 (154,052) (14,718) 5,945,744 5,651,666
Parent company
March 20, 2017
Current Overdue Outstanding Doubtful debts Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Due from subsidiaries 2,800,881 0 0 0 2,800,881
Due from affiliates 778,065 0 0 0 778,065
Net amounts due from subsidiaries and affiliates before doubtful debts provision
3,578,946 0 0 0 3,578,946
Less:
General provision for doubtful debts 0 0 0 0 0
Specific provision for doubtful debts 0 0 0 0 0
Balance at March 20, 2017 3,578,946 0 0 0 3,578,946
Balance at March 20, 2016 1,030,522 0 0 0 1,030,522
14-3- Pursuant to the directive adopted by the Money and Credit Council (Note 8-6), the amounts due from subsidiary and affiliated companies are classified as follows:
15-1- The balances of dividends receivable excluding the dividends from subsidiaries and affiliates are as follows:
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Companies listed on the stock exchange and Farabourse (OTC)
Shomal Drilling Co. 32,905 29,840
Housing Investment Co. 4,090 5,450
Chadormalou Co. 1 1,921
Mines and Metals Development Co. 6,880 9,947
Barez Industrial Co. 3 1,069
Bahman Group 2,366 12,558
Tooka Foulad Investment 13,960 7,611
Tamin Pharmaceutical Investment Co. 1 1,756
Sepah Investment Co. 11,781 39,223
Behshahr Industries Development 0 4,065
Tooka Transport Co. 0 1,830
Rayan Saipa 27 1,317
National Development Investment Group 0 6,520
Isfahan Mobarakeh Steel Mill 4,003 8,920
Mapna Group 1,844 1,590
Iranian Leasing Co. 0 6,152
Ghadir Investment Co. 0 1,519
Saman Insurance Co. 62,347 1
Iran Pump Manufacturing Co. 2,850 2,850
Hamedan Glass Works 3,774 9,374
Central Securities Depository and Settlement Co. 1,914 1,914
Omid Investment Co. 2,172 0
Kharazmi Investment Co. 10,439 0
Tooka Rail 5,999 0
Middle East Bank 8,925 0
Sina Bank 3,373 0
Passargad Bank 2,986 0
Others 7,442 6,047
190,082 161,474
Other companies
Saman Aftab Tejarat 1,962 1,212
Iran Investment Co. 0 3,010
1,962 4,222
192,044 165,696
98 99Financial Report
15-2- Balances due by temporary debtors consist of the following:
15-3- Pursuant to the directive adopted by the Money and Credit Council (Note 8.6.) other accounts receivable of the parent company are classified as follows:
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Items related to loans
Litigation and debt collection costs 2,070,257 1,358,119
2,070,257 1,358,119
Items unrelated to loans
Debtors for sale of assets 3,649,035 4,093,843
Debtors for sale of investments 0 0
Debtors for financial fraud (abuses) 0 0
Other 34,408 34,008
3,683,443 4,127,851
5,753,700 5,485,970
March 20, 2017
Current Overdue Outstanding Doubtful Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Dividends receivable from companies 192,044 0 0 0 192,044
Amounts due by the personnel 0 0 0 0 0
Interest accrued on participation bonds 0 0 0 0 0
Temporary debtors 3,683,443 0 0 2,239,027 5,922,470
Net amounts due from subsidiaries and affiliates before doubt-ful debts provision
3,875,487 0 0 2,239,027 6,114,514
Less:
General provision for doubtful debts 0 0 0 (14,718) (14,718)
Specific provision for doubtful debts 0 0 0 (154,052) (154,052)
Balance at March 20, 2017 3,875,487 0 0 2,070,257 5,945,744
Balance at March 20, 2016 4,293,547 0 0 1,358,119 5,651,666
16- Orders and prepayments
17- Inventory (materials and goods)
Group
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Prepayments 11,196 30,607
Orders 19,298 10,202
30,494 40,809
Group
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Inventory in stock 247,690 98,793
On going projects in the process of completion 70,763 46,567
318,453 145,360
Gro
up
L
and
Bui
ldin
gsIn
stal
latio
nsEq
uipm
ent
Vehi
cles
Fur
nitu
rean
d fix
ture
s
Ref
urbi
shm
ent
and
impr
ovem
ent
in le
ased
build
ings
Ass
ets
in p
roce
ss o
fco
mpl
etio
n
Ord
ers
and
capi
tal
prep
aym
ents
Cap
ital
item
s in
stoc
kTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)
Cost
pri
ce
Bal
ance
at M
arch
21,
201
5 8
70,7
75 1
,037
,757
21,
670
2,8
94,3
29 8
1,56
2 2
,046
,304
128
,502
535
,731
278
,119
125
,595
8,0
20,3
44
Incr
ease
dur
ing
the
year
12,
329
110
,714
0 1
00,2
92 1
,238
12,
977
6,2
95 1
04,9
14 2
6,26
8 5
55,4
26 9
30,4
53
Incr
ease
(dec
reas
e) fr
om r
eval
uatio
n 0
0 0
0 2
,162
0 0
0 0
0 2
,162
Sold
(2,4
63)
(455
) 0
0(1
57)
(845
) 0
0 0
0(3
,920
)
Tran
sfer
s an
d ot
her
chan
ges
21,
587
14,
240
0(1
8,44
6) 1
0,10
2 4
90,7
05 0
(142
,328
)(8
4,53
4)(5
36,0
81)
(244
,755
)
Bal
ance
at M
arch
19,
201
6 9
02,2
28 1
,162
,256
21,
670
2,9
76,1
75 9
4,90
7 2
,549
,141
134
,797
498
,317
219
,853
144
,940
8,7
04,2
84
Incr
ease
dur
ing
the
year
16,
000
478
,547
0 2
4,81
6 1
9,54
5 2
35,7
23 1
5,40
0 4
5,42
2 2
7,11
4 2
86,5
66 1
,149
,133
Incr
ease
(dec
reas
e) fr
om r
eval
uatio
n 3
47,4
14(2
45,7
38)
0 0
0 0
0 0
0 0
101
,676
Sold
(302
,253
)(2
81,7
78)
0 0
0(2
3,28
4) 0
0 0
0(6
07,3
15)
Tran
sfer
s an
d ot
her
chan
ges
(61,
735)
(49,
519)
0(2
,725
,657
)(2
,799
)(7
5,20
7)(4
,905
) 6
,719
(150
,878
)(3
16,6
50)
(3,3
80,6
31)
Bal
ance
at M
arch
20,
201
7 9
01,6
54 1
,063
,768
21,
670
275
,334
111
,653
2,6
86,3
73 1
45,2
92 5
50,4
58 9
6,08
9 1
14,8
56 5
,967
,147
Acc
umul
ated
dep
reci
atio
n an
dac
cum
ulat
ed v
alue
impa
irm
ent
Bal
ance
at M
arch
21,
201
5 0
145
,930
7,8
35 1
,013
,191
26,
240
958
,804
72,
653
2,2
24,6
53
Dep
reci
atio
n du
ring
the
year
and
val
ue im
pair
men
t 0
59,
646
2,4
49 1
6,81
7 1
4,59
2 2
77,6
87 2
3,86
2 3
95,0
53
Sold
0(1
07)
0 0
(153
)(5
26)
0(7
86)
Tran
sfer
s an
d ot
her
chan
ges
0(1
) 0
(18,
982)
0(5
,095
)(1
)(2
4,07
9)
Bal
ance
at M
arch
19,
201
6 0
205
,468
10,
284
1,0
11,0
26 4
0,67
9 1
,230
,870
96,
514
2,5
94,8
41
Dep
reci
atio
n du
ring
the
year
and
val
ue im
pair
men
t 0
65,
904
2,4
16 2
7,16
8 1
4,32
6 2
96,1
00 3
2,37
0 4
38,2
84
Sold
0(1
83,1
09)
0(7
,665
) 0
(22,
907)
0(2
13,6
81)
Tran
sfer
s an
d ot
her
chan
ges
0(1
2,71
3) 0
(939
,243
)(1
,463
)(3
4,52
8)(6
,487
)(9
94,4
34)
Bal
ance
at M
arch
20,
201
7 0
75,
550
12,
700
91,
286
53,
542
1,4
69,5
35 1
22,3
97 1
,825
,010
Boo
k va
lue
At M
arch
21,
201
5 8
70,7
75 8
91,8
27 1
3,83
5 1
,881
,138
55,
322
1,0
87,5
00 5
5,84
9 5
35,7
31 2
78,1
19 1
25,5
95 5
,795
,691
At M
arch
19,
201
6 9
02,2
28 9
56,7
88 1
1,38
6 1
,965
,149
54,
228
1,3
18,2
71 3
8,28
3 4
98,3
17 2
19,8
53 1
44,9
40 6
,109
,443
At M
arch
20,
201
7 9
01,6
54 9
88,2
18 8
,970
184
,048
58,
111
1,2
16,8
38 2
2,89
5 5
50,4
58 9
6,08
9 1
14,8
56 4
,142
,137
18
-1-
The
cost
pri
ce a
nd a
ccum
ulat
ed d
epre
ciat
ion
of th
e G
roup
tang
ible
fixe
d as
sets
are
pro
vide
d in
the
tabl
e be
low
:
18-
Tang
ible
fixe
d as
sets
100 101Financial Report
18
-2-
The
cost
pri
ce a
nd a
ccum
ulat
ed d
epre
ciat
ion
of th
e pa
rent
com
pany
’s ta
ngib
le fi
xed
asse
ts a
re p
rovi
ded
in th
e ta
ble
belo
w:
Pare
nt c
ompa
ny
L
and
Bui
ldin
gsEq
uipm
ent
Vehi
cles
Fur
nitu
rean
d fix
ture
s
Ref
urbi
shm
ent a
nd im
prov
emen
t in
leas
ed b
uild
ings
Ass
ets
in p
roce
ss o
fco
mpl
etio
n
Ord
ers
and
capi
tal
prep
aym
ents
Cap
ital
item
s in
stoc
kTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Cost
pri
ce
Bal
ance
at M
arch
21,
201
5 7
01,7
79 8
75,9
68 2
1,67
0 7
3,11
1 1
,923
,128
127
,070
478
,113
157
,633
125
,595
4,4
84,0
67
Incr
ease
dur
ing
the
year
12,
329
102
,824
0 0
0 6
,295
75,
780
26,
117
555
,426
778
,771
Incr
ease
(dec
reas
e) fr
om r
eval
uatio
n 0
0 0
0 0
0 0
0 0
0
Sold
(2,4
63)
(455
) 0
(157
)(8
43)
0 0
0 0
(3,9
18)
Tran
sfer
s an
d ot
her
chan
ges
21,
587
10,
343
0 1
0,10
2 4
99,2
08 0
(106
,473
)(8
0,13
8)(5
35,8
39)
(181
,210
)
Bal
ance
at M
arch
19,
201
6 7
33,2
32 9
88,6
80 2
1,67
0 8
3,05
6 2
,421
,493
133
,365
447
,420
103
,612
145
,182
5,0
77,7
10
Incr
ease
dur
ing
the
year
16,
000
478
,543
0 1
6,94
9 2
24,9
71 1
5,40
0 1
36 1
6,38
2 2
86,5
64 1
,054
,945
Incr
ease
(dec
reas
e) fr
om r
eval
uatio
n 3
47,4
14(2
45,7
38)
0 0
0 0
0 0
0 1
01,6
76
Sold
(302
,253
)(2
81,7
78)
0 0
(23,
214)
0 0
0 0
(607
,245
)
Tran
sfer
s an
d ot
her
chan
ges
0 0
0 0
0(3
,472
) 0
(29,
722)
(316
,650
)(3
49,8
44)
Bal
ance
at M
arch
20,
201
7 7
94,3
93 9
39,7
07 2
1,67
0 1
00,0
05 2
,623
,250
145
,293
447
,556
90,
272
115
,096
5,2
77,2
42
Acc
umul
ated
dep
reci
atio
n an
dac
cum
ulat
ed v
alue
impa
irm
ent
Bal
ance
at M
arch
21,
201
5 0
116
,469
7,8
35 2
3,88
8 9
05,6
26 7
1,74
6 1
,125
,564
Dep
reci
atio
n du
ring
the
year
and
val
ue im
pair
men
t 0
52,
450
2,4
49 1
2,94
0 2
67,3
74 2
3,86
2 3
59,0
75
Sold
0(1
07)
0(1
53)
(524
) 0
(784
)
Tran
sfer
s an
d ot
her
chan
ges
0(1
) 0
0 0
(1)
(2)
Bal
ance
at M
arch
19,
201
6 0
168
,811
10,
284
36,
675
1,1
72,4
76 9
5,60
7 1
,483
,853
Dep
reci
atio
n du
ring
the
year
and
val
ue im
pair
men
t 0
58,
909
2,4
16 1
2,52
6 2
85,5
84 3
2,37
0 3
91,8
05
Sold
0(1
83,1
09)
0 0
(22,
764)
0(2
05,8
73)
Tran
sfer
s an
d ot
her
chan
ges
0 0
0 0
0(5
,580
)(5
,580
)
Bal
ance
at M
arch
20,
201
7 0
44,
611
12,
700
49,
201
1,4
35,2
96 1
22,3
97 1
,664
,205
Boo
k va
lue
At M
arch
21,
201
5 7
01,7
79 7
59,4
99 1
3,83
5 4
9,22
3 1
,017
,502
55,
324
478
,113
157
,633
125
,595
3,3
58,5
03
At M
arch
19,
201
6 7
33,2
32 8
19,8
69 1
1,38
6 4
6,38
1 1
,249
,017
37,
758
447
,420
103
,612
145
,182
3,5
93,8
57
At M
arch
20,
201
7 7
94,3
93 8
95,0
96 8
,970
50,
804
1,1
87,9
54 2
2,89
6 4
47,5
56 9
0,27
2 1
15,0
96 3
,613
,037
18-3- The land and buildings owned by the bank, were revaluated in 2016-17 whereby the differential amounting to Rls. 214, 663/- million was classified as “Assets revaluation reserve” under the heading of shareholders’ equity and further entered in the comprehensive statement of profit and loss.
18-4- The book value of revaluated land and buildings on the cost price basis is described as follows:
18-5- All tangible fixed assets excluding the motor vehicles have been insured with Saman Insurance Company up to the amount of Rls. 3, 106, 291/- million against possible risks and dangers arising from fire, floods and earthquake. It should further be noted that the motor vehicles have been put under body/average insurance coverage up to the amount of Rls. 72, 390/- million.
March 20, 2017 March 19, 2016
Based on cost price Based on
revaluationBased on cost price
Based on
revaluation
Rls (M) Rls (M) Rls (M) Rls (M)
Land 926,972 794,394 1,084,170 733,233
Buildings 1,336,621 939,710 1,306,334 988,681
2,263,593 1,734,104 2,390,504 1,721,914
102 103Financial Report
19-1- The table of intangible assets of group companies is as follows:
Group
Goodwill for place andbusiness
Software Softwaredevelopment
Royalty to use publicsevice Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Cost price
Balance at March 21, 2015 3,730,604 121,394 0 38,773 3,890,771
Increase during the year 284,889 38,017 0 1,056 323,962
In-company improvement 0 0 0 0 0
Increase (decrease) from revaluation 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 (8,123) 0 0 (8,123)
Balance at March 19, 2016 4,015,493 151,288 0 39,829 4,206,610
Balance at March 21, 2016 4,015,493 151,288 0 39,829 4,206,610
Increase during the year 0 50,398 0 338 50,736
In-company improvement 0 0 0 0 0
Increase (decrease) from revaluation 1,291,808 0 0 0 1,291,808
Sold (1,103,935) 0 0 0 (1,103,935)
Transfers and other changes 0 (12,839) 0 (2,897) (15,736)
Balance at March 20, 2017 4,203,366 188,847 0 37,270 4,429,483
Accumulated depreciation and accumulatedvalue impairment
Balance at March 21, 2015 0 3,065 0 13,899 16,964
Depreciation during the year 0 65,416 0 1,128 66,544
Value impairment loss 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 (5,032) 0 0 (5,032)
Balance at March 19, 2016 0 63,449 0 15,027 78,476
Balance at March 21, 2016 0 63,449 0 15,027 78,476
Depreciation during the year 0 55,565 0 2 55,567
Value impairment loss 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 (829) 0 0 (829)
Balance at March 20, 2017 0 118,185 0 15,029 133,214
Book value
At March 21, 2015 3,730,604 121,394 0 38,773 3,890,771
At March 19, 2016 4,015,493 87,839 0 24,802 4,128,134
At March 20, 2017 4,203,366 70,662 0 22,241 4,296,269
19- Intangible assets19-2- The table of intangible assets of the parent company is as follows:
19-3- Goodwill for place of business was revaluated by the Judiciary’s official expert during the year 2016-17 and the differential thereof in the amount of Rls. 1, 291, 809/- million was classified as the assets revaluation reserve under the heading of shareholders’ equity and entered in the comprehensive profit and loss statement.
Parent company
Goodwill for place andbusiness
Software Softwaredevelopment
Royalty to use publicsevice Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Cost price
Balance at March 21, 2015 3,730,604 110,481 0 20,307 3,861,392
Increase during the year 284,889 35,823 0 1,047 321,759
In-company improvement 0 0 0 0 0
Increase (decrease) from revaluation 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 0 0 0 0
Balance at March 19, 2016 4,015,493 146,304 0 21,354 4,183,151
Balance at March 21, 2016 4,015,493 146,304 0 21,354 4,183,151
Increase during the year 0 46,957 0 315 47,272
In-company improvement 0 0 0 0 0
Increase (decrease) from revaluation 1,291,808 0 0 0 1,291,808
Sold (1,103,935) - 0 0 0 (1,103,935)
Transfers and other changes 0 0 0 (119) (119)
Balance at March 20, 2017 4,203,366 193,261 0 21,550 4,418,177
Accumulated depreciation and accumulatedvalue impairment
Balance at March 21, 2015 0 0 0 0 0
Depreciation during the year 0 63,588 0 0 63,588
Value impairment loss 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 0 0 0 0
Balance at March 19, 2016 0 63,588 0 0 63,588
Balance at March 21, 2016 0 63,588 0 0 63,588
Depreciation during the year 0 53,400 0 0 53,400
Value impairment loss 0 0 0 0 0
Sold 0 0 0 0 0
Transfers and other changes 0 0 0 0 0
Balance at March 20, 2017 0 116,988 0 0 116,988
Book value
At March 21, 2015 3,730,604 110,481 0 20,307 3,861,392
At March 19, 2016 4,015,493 82,716 0 21,354 4,119,563
At March 20, 2017 4,203,366 76,273 0 21,550 4,301,189
104 105Financial Report
20-1- The statutory deposits held with the Central Bank of Iran pursuant to paragraph 3 of article 14 of the Monetary and Banking law has been calculated on the basis of the rates determined by the Money and Credit Council as approved by the Central Bank of Iran.
March 20, 2017 March 19, 2016
Based on cost price Based on revaluation Based on cost price Based on revaluation
Rls (M) Rls (M) Rls (M) Rls (M)
Goodwill for place of business 1,695,925 4,203,366 2,139,705 4,015,493
1,695,925 4,203,366 2,139,705 4,015,493
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Statutory deposit - deposits of mainland branches (rial) 22,782,959 20,885,494
Statutory deposit - deposits of mainland branches (forex) 0 0
Statutory deposit - deposits of free zones branches (rial) 252,725 245,831
Statutory deposit - deposits of free zones branches (forex) 0 0
Statutory deposit with central banks of other countries (forex) 0 0
23,035,684 21,131,325
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Customers' net debts for term LCs 21-1 473,189 63,059 473,189 63,059
Non-operating real estates 0 0 0 0
Foreclosed collaterals 21-2 24,011,632 26,791,928 24,053,243 26,792,889
Advance deposits for leased buildings 117,798 109,429 117,798 101,889
Debtors - persons/entities 21-3 10,422,778 0 10,422,778 0
Notes/documents recievable 4,168,405 0 4,168,405 0
Tax prepayment 954,331 455,174 924,474 443,282
Assets insurance prepayment 0 0 0 0
Prepayment for leased branches 29,131 20,678 29,131 19,678
Inventory (supplies) 0 0 0 0
Items in transit 0 0 0 0
Gold and silver 0 0 0 0
Tax stamp 4,466 3,782 4,466 3,782
Prepayment for consultancy contracts 2,325,775 87,066 2,325,775 87,066
Consolidated goodwill 45,718 129,562 0 0
Temporary debtors - forex 600,596 1,068,543 600,596 1,068,543
Discrepancies in interbank settlement for theaccount 26200 7,159 7,631 7,159 7,631
Other 2,793,453 1,064,676 2,734,548 1,018,232
45,954,431 29,801,528 45,861,562 29,606,051
19-3-1- The book value of the revaluated goodwill for place of business on the cost price basis is described as follows:
20- Statutory deposit
21- Other assets
21-1- Customers’ net debts for term LCs
21-2- Foreclosed collaterals
The composition of the foreclosed collaterals balance breaks down as follows:
21-2-1- The age of the balance of immovable foreclosed collaterals breaks down as follows
21-2-2-The profit (loss) from the sale of foreclosed collaterals has been disclosed in the statement of profit and loss under the note No. 55.
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Customers' net debts for term LCs - in rial 10,773 3,074
Customers' net debts for term LCs - in forex 475,209 108,808
485,982 111,882
Less:
Advances and mid-payments received for term LCs - in rial (9,661) 0
Advances and mid-payments received for term LCs - in forex (3,132) (48,822)
General provision for doubtful debts 0 0
473,189 63,059
March 19, 2016 Foreclosed during the year
Sold/transferred during the year March 20, 2017
Rls (M) Rls (M) Rls (M) Rls (M)
Movable properties
Furniture 0 0 0 0
Equipment 0 0 0 0
Goods 0 0 0 0
Motor vehicles 0 0 0 0
0 0 0 0
Immovable properties
Residential properties 6,183,365 1,849,727 (2,664,682) 5,368,410
Business/Offiice properties 12,753,136 1,162,132 (3,616,326) 10,298,942
Factory/plant 4,238,904 512,304 (324,725) 4,426,483
Land 3,617,484 370,573 (28,649) 3,959,408
26,792,889 3,894,736 (6,634,382) 24,053,243
26,792,889 3,894,736 (6,634,382) 24,053,243
Accumulated value impairement 0 0
26,792,889 24,053,243
Profit (loss) from sales 2,866,384 3,283,507
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Less than a year from the foreclosure date 1,105,167 6,335,850
One year or two years from the foreclosure date 17,679,032 15,998,782
Over two years from the foreclosure date 5,269,044 4,458,257
24,053,243 26,792,889
106 107Financial Report
21-3- Goodwill
Details of goodwill from consolidated turnover under note (8-13 of significant accounting policies) are as follows:
21-4- If the balance of items in transit remains in credit, it shall be reflected in the note to other liabilities.
Group
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Cost at the beginning of the year 220,704 216,980
Goodwill acquired during the year 0 3,724
Adjustments for secondary sales (149,730) 0
Cost at year-end 70,974 220,704
Accumulated depreciation at the beginning of the year (91,142) (69,336)
Depreciation during the year (4,440) (21,806)
Adjustments from secondary sales 70,326 0
Accumulated depreciation at year-end (25,256) (91,142)
Book value 45,718 129,562
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Central Bank of Iran (CBI)
Deposits in rial 0 0 0 0
Term deposits in forex 22-1 1,114,096 5,560,669 1,114,096 5,560,669
Demand deposits in forex 22-2 28,470 16,030,745 28,470 16,030,745
Debt for differences in foreign exchange rates 22-3 2,789,780 2,769,244 2,789,780 2,769,244
Debt for overdraft from current account 0 0 0 0
Debt for foreign exchange reserves account 0 0 0 0
Facilities received in rial 0 0 0 0
Facilities received in forex 0 0 0 0
Other 22-4 0 1,472,294 0 1,472,294
3,932,346 25,832,952 3,932,346 25,832,952
Local banks and credit indtitutions
Demand deposits in rial 22-5 342 980 342 980
Demand deposits in forex 22-6 618,466 896,177 618,466 896,177
Facilities received in rial 275,181 629,976 0 0
Facilities received in forex 0 0 0 0
Payment of checks issued by other banks 0 0 0 0
893,989 1,527,133 618,808 897,157
Foreign banks
Demand deposits in rial 22-7 924,135 312,101 924,135 312,101
Demand deposits in forex 0 0 0 0
Debt for current account (overdraft) 0 0 0 0
924,135 312,101 924,135 312,101
5,750,470 27,672,186 5,475,289 27,042,210
22- Due to banks and other credit institutions
22-1- The term foreign currency deposits of CBI are as follows:
22-1-1- It is worth mentioning that the amount of 30, 126, 172.57/- Euros and the amount 1, 975, 580.85/- Swiss Francs have been deposited under the heading of BCP for the CBI’s forex deposits with us.
22-2- The current foreign currency deposits of CBI are as follows:
22-3- The balance of the said account consists of the amount of Rls. 2,461,053/- million which is related to the directive No. 60/1015 of December 7, 2013 issued by the CBI in respect of the differences in foreign exchange rates. Further, the amount of Rls. 226,621/- million is related to the student foreign exchange quota and the amount of Rls. 92,466/- million is related to LC debts of Modiran Khodro and Ghovayeh Moharrekeh (Power Train).
22-4- This account is related to Lufthansa and Turkish Airlines which was settled in the beginning of the year 2016.
22-5- The demand deposits of local banks in rials break down as follows:
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amount in Rial Forex amount Exchange rate Amount in Rial
Rls (M) Rls (M)
Euro 30,126,172/57 34851 1,049,928 138,950,071.20 33,935 4,715,271
Swiss Franc 1,975,580/85 32481 64,168 27,329,991.06 30,933 845,398
1,114,096 5,560,669
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amount in Rial Forex amount Exchange rate Amount in Rial
Rls (M) Rls (M)
Euro 518,123 34,851.00 18,057 82,549,089 33,935 2,801,304
Omani Rial 0.00 84,184.00 0 87,011,073 78,546 6,834,371
Swiss Franc 320,591/38 32,481.00 10,413 42,710,031 30,933 1,321,149
Japanese Yen 0.00 28,7.72 0 18,848,848,488 269 5,073,921
28,470 16,030,745
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Melli Bank 42 48
Dey Bank 300 301
Tosee Taavon (Cooperative Development) 0 631
342 980
108 109Financial Report
22-6- The demand deposits of local banks in foreign currency break down as follows:
22-7- The demand deposits of foreign banks in foreign currency break down as follows:
22-8- The credit facilities in rial received from other banks are related to the group companies which are mainly from Pasargad Bank and Sepah Bank.
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amounts in rial Forex amount Exchange rate Amounts in rial
Rls (M) Rls (M)
US Dollar 0 32,420 0 518,195 30,240 15,670
Euro 26,516,733 34,851 924,135 8,735,230 33,935 296,431
924,135 312,101
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amounts in rial Forex amount Exchange rate Amounts in rial
Rls (M) Rls (M)
US Dollar 8,183,356 32,420 265,305 10,722,105 30,240 324,237
Euro 9,149,375 34,851 318,865 16,209,487 33,935 550,069
UK Pound 166 40,191 7 166 43,089 8
UAE Dirham 2,563,891 8,827 22,632 2,563,891 8,234 21,112
Japanese Yen 2,728,184 288 785 2,721,684 269 732
Omani Rial 11,065 84,184 931 0 0 0
Indian Rupee 20,043,930 496 9,941 44,130 453 19
618,466 896,177
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Natural customers
Demand deposits and similar deposits 23-1 3,845,822 3,661,486 3,857,208 3,672,873
Savings deposits and similar deposits 23-2 620,481 540,323 620,481 540,323
Other deposits and advances 23-3 52,988 63,101 41,602 51,715
4,519,291 4,264,910 4,519,291 4,264,911
Legal customers
Demand deposits and similar deposits 23-1 8,519,763 11,150,092 8,496,029 11,210,230
Savings deposits and similar deposits 23-2 1,287,043 1,725,959 1,287,877 1,726,086
Other deposits and prepayments 23-3 2,780,466 4,665,506 2,795,176 4,683,851
12,587,272 17,541,557 12,579,082 17,620,167
17,106,563 21,806,467 17,098,373 21,885,078
23- Customers’ deposits – Natural and legal persons
23-1- Demand deposits and similar deposits
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Free-interest deposits in rial 7,513,709 8,574,317 7,530,060 8,649,717
Free-interest deposits in forex 648,669 858,521 648,669 858,521
Various bank checks sold 575,374 413,209 575,374 413,209
Customers' current accounts with overseas branches 0 0 0 0
Unclaimed balance in rial 54,495 33,918 54,495 33,918
Unclaimed balance in forex 4,037 3,778 4,037 3,778
Interim credit accounts (temporary creditors) in rial 23-1-1 1,150,228 1,356,853 1,121,529 1,352,977
Interim credit accounts (temporary creditors) in forex 23-1-2 1,881,336 3,512,700 1,881,336 3,512,700
Drafts drawn on the bank in rial 0 0 0 0
Drafts drawn on the bank in forex 553,119 63,072 553,119 63,072
Unused managed cash in rial 15,915 26,497 15,915 26,497
Unused managed cash in forex 0 0 0 0
Less: 0 0 0 0
Account for the bank's checks sold (unsettled) (31,297) (31,287) (31,297) (31,287)
12,365,585 14,811,578 12,353,237 14,883,102
23-1-1- The items of interim credit accounts (temporary creditors) in rial of the Parent Company break down as follows:
23-1-2- The items of interim credit accounts (temporary creditors) in foreign currency break down as follows:
Parent company
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
For differences in preferential and official exchange rates 80,111 186,156
Customers' bearer cards' deposits 856,241 961,585
Funds received for social security 35,055 46,882
Account for payment of utilities (telecommunication, gas, electricity,water and telephone bills and municipal dues) 7,909 17,192
Interest on matured coupons of bearer certificates of deposit (CDs) 1,959 2,100
Good performance guarantees by contractors 27,778 73,617
Advances for safe deposit boxes 35,861 13,464
Nousazan Housing Project deposits 11,386 11,386
Other items (23 items) 65,229 40,595
1,121,529 1,352,977
Parent company
Note March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Rial-equivalent amount of foreign currency allocated for drafts and letters ofcredit (LCs) 23-1-2-1 1,326,915 2,594,415
Local creditors - account for other branches in forex 23-1-2-1 545,213 823,747
Amounts received for documents inconsistent with LC terms 2,860 18,586
Temporary creditors - others (one item) 6,348 75,952
1,881,336 3,512,700
110 111Financial Report
Group Parent company
March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Free-interest deposits in rial 538,628 553,187 539,462 553,314
Free-interest deposits in forex 1,366,892 1,711,091 1,366,892 1,711,091
Savings deposits - overseas branches 0 0 0 0
Free-interest deposits - for young people 0 0 0 0
Personnel savings account 0 0 0 0
Personnel pension fund 0 0 0 0
Savings deposits for housing project 0 0 0 0
Special unused free-interest deposits 2,004 2,004 2,004 2,004
1,907,524 2,266,282 1,908,358 2,266,409
23-1-2-1- The amounts under this item are related to foreign currencies provided by the Central Bank of Iran for customers’ drafts and letters of credit which will remain in this account until when their uses are specified to be paid thereafter.
23-2- Savings deposits and similar deposits – for natural and legal persons
23-3- Other deposits and advances
24-1- A summary turnover of this account in the parent company is follows:
Group Parent company
March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Balance from prior years 196,733 218,139 157,034 185,812
Dividends approved 0 639,755 0 640,000
Dividends paid (137,422) (661,161) (104,552) (668,778)
59,311 196,733 52,482 157,034
Group Parent company
March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Cash deposits for LGs’ in rial 532,678 784,730 536,002 789,730
Cash deposits for LGs’ in forex 5,337 6,432 5,337 6,432
Cash advances received from customers for LCs in rial 177,537 158,224 177,537 158,224
Cash advances received from customers for LCs in forex 2,117,902 3,779,221 2,117,902 3,781,180
2,833,454 4,728,607 2,836,778 4,735,566
Cash dividend per
share
Approved dividend
Balance at March 19, 2016
Dividend paid during 2016
Capital increase from accrued
dividendsBalance at
March 20, 2017
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Prior years 0 4,541,640 66,895 (39,295) 0 27,600
Fiscal year ended March 20, 2015 80 640,000 90,139 (65,257) 0 24,882
Fiscal year ended March 19, 2016 0 0 0 0 0 0
157,034 (104,552) 0 52,482
24- Dividends payable
Group
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Advance received 7,847 41,979
7,847 41,979
26-1- Turnover of tax provision account breaks down as follows:
26-2- A summary statement of the Bank’s (parent company) tax position is as follows:
26-2-1- It is further noted that the tax levied and assessed for the year 2016 was amount of Rls. 1,138 billion out of which the amount of Rls. 653 billion was related to the performance tax and the amount of Rls. 485 billion was related to the finalized tax. Upon the objection made by the bank the amount of Rls.547 billion was reduced by the Initial Tax Panel and the matter is still pending at the Tax Revision Board. For the finalized tax amount (real estates transfer), the enforcement writ of expert’s opinion has been issued. Nontheless, the bank has recognized loss in the segment of sharing-profit activities and thus no provision thereupon has been recorded in accounts.
Group Parent company
March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Balance at the beginning of the year 171,440 193,432 0 0
Tax provision for the year 247,397 166,052 0 0
Adjustment of income tax for previous year 0 0 0 0
Tax paid during the year (69,565) (188,044) 0 0
Consolidated adjustments (233,393) 0 0 0
115,879 171,440 0 0
Tax prepayment 0 0 0 0
Balance at the year end 115,879 171,440 0 0
March 20, 2017 March 19, 2016
Tax
Fiscalyear
Profitdeclared
Taxableincome
Tax declared
Taxassesed Finalized Paid Provision
balanceProvision balance
Method of tax assessment
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
2011 1,514,946 641,210 160,303 691,346 336,621 336,631 0 0 Settled
2012 878,773 149,690 37,423 460,193 386,220 386,220 0 0 Settled
2013 1,448,311 634,968 158,742 472,886 0 158,742 0 0 Settled
2014 2,221,071 712,465 178,116 562,659 474,370 474,370 0 0 Settled
2015 1,011,340 2,279,151 0 606,664 386,377 386,377 0 0 Settled
2016 102,751 0 0 0 0 0 0 0 Protest submitted to the Tax Revision Board.
2017 84,671 0 0 0 0 0 0 0
0 0
25- Advances received
26- Provision for income tax
112 113Financial Report
27-1- The debts for term letters of credit in foreign currency all due by the parent company are as follows:
27-2- The bank’s provisions for expenses and accounts payable break down as follows:
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Notes payable 49,469 37,676 0 0
Debts for term letters of credit in rial 11,675 22,679 11,675 22,679
Debts for term letters of credit in forex 27-1 498,225 78,001 498,225 78,001
Ijarah bonds payable 0 0 0 0
Facilities received from National Development Fund 0 0 0 0
Interest and fees payable 0 0 0 0
Insurance payable 0 0 0 0
Allowance for leave entitlement (unused) 0 0 0 0
Membership fee payable to Deposits Guarantee Fund 0 0 0 0
Items in transit 0 0 0 0
Provision for expenses payable 27-2 2,591,288 1,798,926 2,340,392 1,566,383
Withholding taxes payable 22,480 79,253 8,690 4,856
Other debts 27-3 7,908,004 4,593,753 5,954,319 2,596,734
11,081,141 6,610,288 8,813,301 4,268,653
March 20, 2017 March 19, 2016
Currency Type Forex amount Exchange rate Amounts in rials Forex amount Exchange rate Amounts in rial
Rls (M) Rls (M)
Euro 11,692,776 34,851 407,505 1,682,669 33,935 57,102
Chinese Yuan 2,306,342 4,702 10,845 0 0 0
S. Korean Won 2,589,273,835 29 74,313 1,719,950 4,655 8,007
Indian Rupee 11,213,760 496 5,562 500,451,042 26 12,892
498,225 78,001
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Purchase/acquisition of real estates 1,291,255 1,299,055
Rents payable 4,310 12,510
Interest payable on foreign currency deposits of banks 0 36,166
Provision for withholding tax 10,410 10,410
Other 999,718 172,803
Provision for expenses 0 0
Provision for personnel bonus and productivity allowance 5,245 5,245
Accounts payable for administrative expenses 29,454 30,194
2,340,392 1,566,383
27- Provisions and other liabilities 27-3- Other debts related to the parent company break down as follows:
28-1- Since the employees are under the social security coverage, no provisions for their retirement pension benefits have been reflected in accounts.
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Items in transit 4,282,306 829,654
Current deposits by central offices with branches 218,557 277,766
For cash penalties received for non-performance of forex obligations 62,490 233,140
Lawyer's/attorney's fee 259,602 102,186
Inter-branch accounts 241,950 67,826
Contractual deductions for social security insurance 90,359 59,318
Last statement for social security settlement 46,193 28,122
Assets and warehousing 1,677 23,011
Insurance of loan collaterals 9,697 11,215
Cash amounts received (from foreclosed collaterals) 25,873 8,273
Employees' wages and salaries 5,648 4,887
Surplus cash in hand 2,300 1,893
Productivity allowance as decided by the Branch Division Affairs 1,471 1,471
Debt for sale of student forex quota 289 393
Other items (23 items ) 705,907 947,579
5,954,319 2,596,734
Group Parent company
March 20, 2017 March 20, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Balance at the beginning of year 466,334 326,616 414,634 296,307
Paid during the year (37,674) (22,536) (28,240) (16,168)
Consolidated adjustments (34,097) 0 0 0
Provisions covered for the year 169,230 162,254 150,917 134,495
Balance at the year-end 563,793 466,334 537,311 414,634
28- Provisions for employees’ termination and pension benefits
114 115Financial Report
Group Parent company
Note March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Term investment deposits Rls (M) Rls (M) Rls (M) Rls (M)
Long-term investment deposits 29-1 96,109,782 85,663,226 96,111,595 85,637,897
Short-term investment deposits 29-1 112,520,618 102,754,826 113,709,513 103,443,356
Special short-term deposits 29-1 1,595,639 332,300 1,595,639 332,300
Investment deposits received from banks andcredit institutions
29-1 1,510,171 2,645,504 1,510,171 2,645,504
211,736,210 191,395,856 212,926,918 192,059,057
Interest payable on term investment deposits
Long-term investment deposits 29-2 1,296,633 1,411,809 1,299,234 1,413,821
Short-term investment deposits 29-2 611,167 696,922 611,167 696,922
Special short-term deposits 29-2 15,730 3,995 15,730 3,995
Investment deposits received from banks andcredit institutions
29-2 0 0 0 0
1,923,530 2,112,726 1,926,131 2,114,738
213,659,740 193,508,582 214,853,049 194,173,795
29-1- The term investment deposits by a breakdown of rial and foreign currency
March 20, 2017 March 19, 2016
Rial Forex Total Rial Forex Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Ordinary term investment deposits 99,348,791 15,870,895 115,219,686 92,348,534 13,740,327 106,088,861
Special short-term investment deposits
Up to three months 22,845 0 22,845 34,387 0 34,387
More than three to six months 1,399,494 0 1,399,494 88,497 0 88,497
More than six months to one year 173,302 0 173,302 209,418 0 209,418
Long-term investment deposits
General certificates of deposit 0 0 0 0 0 0
Special certificates of deposit 0 0 0 0 0 0
One-year term 79,268,602 0 79,268,602 64,474,444 0 64,474,444
Two-year term 40,331 0 40,331 121,383 0 121,383
Three-year term 56,310 0 56,310 74,030 0 74,030
Four-year term 73,815 0 73,815 76,042 0 76,042
Five-year term 16,672,533 0 16,672,533 20,891,995 0 20,891,995
197,056,023 15,870,895 212,926,918 178,318,730 13,740,327 192,059,057
29-1-1- The growth in the one-year-term deposits is due to the prohibition of more than one-year-term deposits under the directive No. 93/96593 of July 2, 2014. The balance of over one-year-term deposits is related to prior years’ deposits.
29- Investment depositors’ equity 29-1-2- The long-term investment deposits in terms of maturity and interest rate
29-1-3- Turnover of investment deposits in rial
March 20, 2017 March 19, 2016
More than22% 19 to 22% 16 to 19 % 13 to 16% 10 to 13% 10% and less Total Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Matured 0 7,236 310 796 0 5,786 14,128 9,859
2017 0 1,928 343 224 0 0 2,495 400,100
2018 76,012 5,083,630 7,065,238 64,311,656 0 0 76,536,536 16,359,888
2019 123,132 10,167,365 9,411 7,766,243 0 0 18,066,151 56,226,945
2020 59,244 1,194,826 10,521 13,581 0 0 1,278,172 11,132,750
2021 and onward 10,303 112,855 35,159 55,796 0 0 214,113 1,508,355
268,691 16,567,840 7,120,982 72,148,296 0 5,786 96,111,595 85,637,897
2016 406,937 31,183,750 3,985,464 50,061,364 0 382 85,637,897
Balance atMarch 19, 2016
Deposits takenduring the year
Repayment ofdeposits
Balance at March20, 2017
Long-term investment deposits Rls (M) Rls (M) Rls (M) Rls (M)
General certificates of deposit 0 0 0 0
Special certificates of deposits 0 0 0 0
One-year term 64,474,444 79,268,602 64,474,442 79,268,604
Two-year term 121,385 15,569 96,621 40,333
Three-year term 74,032 18,886 36,607 56,311
Four-year term 76,042 18,600 20,827 73,815
Five-year term 20,891,995 63,110 4,282,572 16,672,533
Ordinary short-term investment deposits 92,347,662 26,227,063 19,272,011 99,302,714
Special short-term investment deposits 332,300 1,494,770 231,431 1,595,639
Investment deposits received from banks and credit institutions 870 45,262 58 46,074
178,318,730 107,151,862 88,414,569 197,056,023
116 117Financial Report
29-1-4- Turnover of investment deposits in forex
29-1-5- The composition of depositors of investment deposits breaks down as follows:
Balance at March19, 2016
Deposits takenduring the year
Repayment ofdeposits
Balance atMarch 20, 2017
Balance atMarch 20, 2017
Balance at March 19,
2016
Amount in forex
Amount in forex
Amount inforex
Amount inforex Amount in rial Amount in
rial
Rls (M) Rls (M)
Long-term deposits
US Dollar 0 0 0 0 0 0
Other foreign currencies 0 0 0 0 0 0
Special and ordinaryshort-term deposits
US Dollar 96,323,512 30,776,229 22,686,891 104,412,850 3,385,066 2,912,825
Australian dollar 718 0 0 718 17 16
Canadian dollar 61,993 0 1,720 60,273 1,462 1,431
Euro 208,831,971 191,982,023 94,088,498 306,725,496 10,689,692 7,086,714
UK Pound 16,923,939 1,387,491 2,344,423 15,967,007 140,940 139,351
UAE Dirham 767,764 170,164 122,690 815,238 32,767 33,084
Japanese YEN 2,039,562,587 175,000 2,035,675,815 4,061,772 1,169 549,029
Swiss Franc 1,489 4,482,380 590,768 3,893,101 126,451 46
Turkish Lira 35,370,672 0 32,102,671 3,268,001 29,232 373,195
Chinese Yuan 1,000 0 0 1,000 4 4
Investment deposits received from banks andcredit insurance
US Dollar 1,982,747 0 1,982,747 0 0 59,958
Euro 49,231,869 40,000,000 47,226,733 42,005,136 1,463,920 1,670,683
UAE Dirham 79,709,130 0 79,695,200 13,930 122 656,324
UK Pound 1,326 0 0 1,326 53 57
Korean WON 10,000,000,000 0 10,000,000,000 0 0 257,610
15,870,895 13,740,327
March 20, 2017 March 19, 2016
Number Amount Number Amount
Depositor Rls (M) Depositor Rls (M)
Deposits in rial
Legal persons 373,623 19,047,612 108,100 23,219,603
Natural persons 2,012,103 177,962,338 2,195,919 155,098,256
Investment deposits received from banks and credit institutions 6 46,074 7 872
2,385,732 197,056,024 2,304,026 178,318,731
Deposits in foreign currency
Legal persons 997 8,472,030 938 6,332,341
Natural persons 48,410 5,934,767 46,338 4,763,352
Investment deposits received from banks and credit institutions 5 1,464,097 6 2,644,633
49,412 15,870,894 47,282 13,740,326
2,435,144 212,926,918 2,351,308 192,059,057
29-2-1- Considering the provisional surplus interests paid to depositors in proportion to their shares from the profit-sharing income as described in the statement of investment deposits performance under the circular No. 94/69383 of June 10, 2016, the procedure for calculating the share of each item of various investment deposits from the differential in provisional and final interests for the reporting fiscal year does not apply.
29-2- Interests payable on term investment deposits are as follows:
Group
Balance atMarch 19, 2016
Provisional interest
during theyear
Difference in provisional
and finalinterest
Interest paid during the
year
Balance atMarch 20, 2017
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Short-term deposits 680,105 13,504,958 0 (13,587,871) 597,192
Special short-term deposits 3,995 130,924 0 (119,189) 15,730
General certificates of deposit 0 1,222 0 (1,222) 0
Special certificates of deposit 0 0 0 0 0
One-year term deposits 1,410,503 13,385,848 0 (13,995,641) 800,710
Two-year term deposits 143 12,403 0 (12,094) 452
Three-year term deposits 118 13,742 0 (11,729) 2,131
Four-year term deposits 17 15,452 0 (13,714) 1,755
Five-year term deposits 1,028 4,341,224 0 (3,850,664) 491,588
Investment deposits received from banks 0 141,045 0 (141,045) 0
Foreign currency deposits 16,817 400,513 0 (403,358) 13,972
2,112,726 31,947,331 0 (32,136,527) 1,923,530
Parent company
Balance atMarch 19, 2016
Provisional interest
during theyear
Difference in provisional
and finalinterest
Interest paid during the
year
Balance atMarch 20, 2017
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Short-term deposits 680,105 13,504,958 0 (13,587,871) 597,192
Special short-term deposits 3,995 130,924 0 (119,189) 15,730
General certificates of deposit 0 1,222 0 (1,222) 0
Special certificates of deposit 0 0 0 0 0
One-year term deposits 1,410,503 13,385,846 0 (13,995,641) 800,708
Two-year term deposits 143 12,401 0 (12,094) 450
Three-year term deposits 118 13,740 0 (11,729) 2,129
Four-year term deposits 17 15,452 0 (13,714) 1,755
Five-year term deposits 3,040 4,341,813 0 (3,850,664) 494,189
Investment deposits received from banks 0 141,045 0 (141,045) 0
Foreign currency deposits 16,817 400,514 0 (403,358) 13,973
2,114,738 31,947,915 0 (32,136,527) 1,926,126
118 119Financial Report
Date of capital increase capital increase Amount of capital increase (in billions)
New capital (in billion)
Source of capital Increase
Percentage Rls (M) Rls (M)
August 29, 2002 0 0 200,000 Accrued dividends due and cash contribution
November 27, 2003 10 20,000 220,000 Accrued dividends due and cash contribution
October 15, 2004 36.4 80,000 300,000 Cash contribution
March 7, 2005 100 300,000 600,000 Accrued dividends due and cash contribution
November 16, 2005 25 150,000 750,000 Accrued dividends due and cash contribution
October 8, 2006 20 150,000 900,000 Accrued dividends due and cash contribution
January 13, 2010 100 900,000 1 800000 Accrued dividends due, cash contribution
and waiver of rights issue
March 20, 2011 66.7 1,200,000 3,000,000 Accrued dividends due and cash contribution
March 19, 2012 33.3 1,000,000 4,000,000 Shareholders’ cash contribution
October 21, 2012 64.7 2,588,000 6,588,000 Assets revaluation reserve
March 9, 2016 21 1,412,000 8,000,000 Cash contribution and retained earnings
30-1- List of Saman Bank Shareholders more than 1%:
Shareholders Classification Shares Percentage Nationality
Saman Investment Development Co. Legal Registered Companies 719,999,995 9 Iranian
Fanavar Sarmayeh Notrika Legal Registered Companies 687,716,809 8.6 Iranian
Pension Fund of Protecting Steel Industry Employees Legal Registered Companies 400,088,117 5 Iranian
Mr. Mohammad Zarrabieh Individual Person 305,266,280 3.82 Iranian
Ms. Hava Chaee Deh Khoee Individual Person 214,211,112 2.68 Iranian
Mr. Vali Zarrabieh Individual Person 196,660,057 2.46 Iranian
Mr. Seyed Mahdi Ghafoori Individual Person 181,316,669 2.27 Iranian
Mr. Seyed Ahmad Akhavan Dastmalchi Individual Person 166,800,291 2.09 Iranian
Mr. Ahmad Reza Zarrabieh Individual Person 123,349,619 1.54 Iranian
Pomp Iran Manufacturing Industries Legal Registered Companies 147,330,232 1.84 Iranian
Mr. Mostafa Tavakkol Harandi Individual Person 98,000,000 1.23 Iranian
Iran & West Co. Legal Registered Companies 88,975,787 1.11 Iranian
Other Legal Persons Less than 1% Legal Registered Companies 1,132,072,431 14.14 Iranian
Other Natural Persons Less than 1% Individual Person 3,538,212,601 44.22 Iranian
8,000,000,000 100
30-1-1- The number of 193,018,363 shares out of those owned by other natural shareholders (equivalent to 2.41 percent of bank shares) belongs to the personnel.
The Bank’s initial capital was the amount of Rls. 200 billion (divided into 200 million shares at nominal value of 1,000 rials each) which was increased in several stages to the amount of Rls. 8,000 billion (divided into 8,000 million shares at nominal value of 1,000 rials each) at the end of fiscal year ended March 19, 2016 as described below:
30- Share Capital
31-1- Subject to the provisions of paragraph A of article 33 of the Monetary and Banking Law and paragraph B of article 58 of the articles of association, the legal reserve in the parent company is 15% and subject to the provisions of articles 140 and 238 of the Commercial Code Amendment ratified on March 15,1969, the legal reserve in the subsidiaries is 5% which will be deducted from relevant distributable profit and then transferred to the legal reserve account. In accordance with the said articles, such transfer to the legal reserve account is mandatory until when the balance of legal reserve in the bank reaches the amount of the bank’s capital and in the subsidiaries reaches 10% of the same company capital and then this process shall remain to be voluntary. The legal reserve will not be transferable to capital account and will not be distributed among the shareholders unless when the company is dissolved. The amounts entered in the balance sheet break down as follows:
Group Parent company
March 20, 2017 March 19, 2016 March 20, 2017 March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Balance at the beginning of the year 1,595,889 1,495,671 1,523,868 1,448,455
Allocated during the year 29,041 100,218 12,700 75,412
Consolidated adjustments (46,954) 0 0 0
Balance at the year end 1,577,976 1,595,889 1,536,568 1,523,868
Group
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Parent campany
Saman Bank 1,536,568 1,523,868
Subsidiary companies
Saman Satellite Communications Co. 6,663 8,346
Saman Kish Electronic Payment Co. 0 43,570
Saman Exchange Co. 25,122 14,075
Saman Brokerage Co. 2,067 1,738
Saman Pardazeshgaran Co. (Processing) 2,725 2,023
Atiyeh Alborz Trade Development Co. 0 0
Iranian Hafez Saman Credit Bureau and Scoring Co. 4,157 1,595
Sepehr Shargh Atiyeh Andishan 482 482
Sepehr Mehr Atiyeh Andishan 1 1
Tondar Nour 191 191
1,577,976 1,595,889
31- Legal reserve
2017 2016
Assets revaluation
amount
Transferred, amortized andretired/Capital increase
Assets revaluationbalance
Assets revaluationbalance
Rls (M) Rls (M) Rls (M) Rls (M)
March 19, 2012 2,588,675 2,588,000 675 675
March 20, 2017 1,506,472 0 1,506,472 0
4,095,147 2,588,000 1,507,147 675
32- Assets revaluation reserve
120 121Financial Report
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Share of capital 129,800 391,404
Share of legal reserve 9,565 29,749
Share of retained earnings 45,597 123,233
184,962 544,386
Group
2017 2016
Note Profit-sharing Non-profitsharing Total Profit-sharing Non-profit
sharing Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Income earned from loans granted 34-1 21,757,399 613,013 22,370,412 28,032,898 1,177,436 29,210,334
Income earned from deposits inother banks 34-2 1,586,430 266,860 1,853,290 1,524,322 349,451 1,873,773
Total incomes earned from loansgranted and deposits in other banks
23,343,829 879,873 24,223,702 29,557,220 1,526,887 31,084,107
Parent company
2017 2016
Note Profit-sharing Non-profitsharing Total Profit-sharing Non-profit
sharing Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Income earned from loans granted 34-1 21,806,820 613,013 22,419,833 28,160,995 1,177,436 29,338,431
Income earned from deposits inother banks 34-2 1,586,430 252,633 1,839,063 1,524,322 327,580 1,851,902
Total incomes earned from loansgranted and deposits in other banks
23,393,250 865,646 24,258,896 29,685,317 1,505,016 31,190,333
32-1- Out of Rls. 1,506,473/- million, the amount of Rls. 1,291,809/- million is related to increase in goodwill revaluation and the amount of Rls. 214,664/- million is related to increase in land and buildings revaluation which have been disclosed in detail under notes 20-3 and 21-3.
33- Minority interest
34- Incomes from loans granted, deposits in other banks and debt securities
• T
he it
ems
whi
ch a
re r
ecog
nize
d as
non
-pro
fit s
hari
ng u
nder
the
dire
ctiv
e fo
r ca
lcul
atio
n an
d di
visi
on o
f sha
red
prof
it ar
e to
be
refle
cted
in th
e no
n-pr
ofit
shar
ing
colu
mn.
34
-1-
Inco
me
fro
m l
oa
ns g
ra
nte
d (
Lo
an
in
tere
st)
Gro
up
2017
2016
Ria
lFo
rex
(Non
-pro
fitsh
arin
gTo
tal
Ria
lFo
rex
(Non
-pro
fitsh
arin
g)To
tal
Prof
it-sh
arin
g N
on-p
rofit
shar
ing
Tota
lPr
ofit-
shar
ing
Non
-pro
fitsh
arin
gTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sale
s by
inst
alm
ents
738
,104
8
0,75
1 8
18,8
55
0 8
18,8
55
224
,209
0
224
,209
0
224
,209
Jeal
eh (s
ervi
ce c
ontr
act)
409
,266
7
6,42
7 4
85,6
93
30,
269
515
,962
3
83,7
95
0 3
83,7
95
6,2
58
390
,053
Hir
e pu
rcha
se c
ontr
acts
86,
644
0 8
6,64
4 0
86,
644
900
,223
0
900
,223
0
900
,223
Muz
arab
a (tr
ade
cont
ract
s) 1
,909
,647
0
1,9
09,6
47
0 1
,909
,647
3
,858
,092
0
3,8
58,0
92
0 3
,858
,092
Civ
il pa
rtne
rshi
p 1
7,13
8,86
5 0
17,
138,
865
35,
824
17,
174,
689
20,
984,
558
0 2
0,98
4,55
8 7
6,75
5 2
1,06
1,31
3
Sala
f (fu
ture
con
trac
ts)
23,
527
0 2
3,52
7 0
23,
527
6,0
60
0 6
,060
0
6,0
60
Fact
orin
g 9
10,1
90
0 9
10,1
90
0 9
10,1
90
989
,587
0
989
,587
0
989
,587
Mur
abah
a 4
,671
0
4,6
71
0 4
,671
5
,740
0
5,7
40
0 5
,740
Este
sna'
a 0
0 0
0 0
0 0
0 0
0
Late
pay
men
t pen
alty
for
LGs
paid
536
,485
0
536
,485
1
6,65
9 5
53,1
44
680
,634
0
680
,634
1
39,2
30
819
,864
Late
pay
men
t pen
altie
s fo
r de
btor
s of
LC
s 0
121
,819
1
21,8
19
0 1
21,8
19
0 8
48,3
50
848
,350
0
848
,350
Late
pay
men
t pen
alty
for
LGs
paid
0 2
51,2
64
251
,264
0
251
,264
0
92,
292
92,
292
0 9
2,29
2
Oth
er 0
0 0
0 0
0 1
4,55
1 1
4,55
1 0
14,
551
21,
757,
399
530
,261
22,
287,
660
82,
752
22,
370,
412
28,
032,
898
955
,193
28,
988,
091
222
,243
29,
210,
334
122 123Financial Report
34
-2-
Inco
me
fro
m d
ep
osit
s in
oth
er
ba
nk
s a
nd
de
bt
se
cu
riti
esPa
rent
com
pany
2017
2016
Ria
l F
orex
Non
-pro
fit-
shar
ing
Tota
lR
ial
Fore
x (N
on-p
rofit
shar
ing)
Tota
lPr
ofit-
shar
ing
Non
-pro
fit-
shar
ing
Tota
lPr
ofit-
shar
ing
Non
-pro
fitsh
arin
gTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Sale
s by
inst
alm
ents
738
,103
8
0,75
1 8
18,8
54
0 8
18,8
54
224
,208
0
224
,208
0
224
,208
Jeal
eh (s
ervi
ce c
ontr
act)
409
,266
7
6,42
7 4
85,6
93
30,
269
515
,962
3
83,7
95
0 3
83,7
95
6,2
58
390
,053
Hir
e pu
rcha
se c
ontr
acts
86,
644
0 8
6,64
4 0
86,
644
900
,223
0
900
,223
0
900
,223
Muz
arab
a (tr
ade
cont
ract
s) 1
,909
,649
0
1,9
09,6
49
0 1
,909
,649
3
,858
,092
0
3,8
58,0
92
0 3
,858
,092
Civ
il pa
rtne
rshi
p 1
7,18
8,28
6 0
17,
188,
286
35,
824
17,
224,
110
21,
112,
656
0 2
1,11
2,65
6 7
6,75
5 2
1,18
9,41
1
Sala
f (fu
ture
con
trac
ts)
23,
526
0 2
3,52
6 0
23,
526
6,0
60
0 6
,060
0
6,0
60
Fact
orin
g 9
10,1
90
0 9
10,1
90
0 9
10,1
90
989
,587
0
989
,587
0
989
,587
Mur
abah
a 4
,671
0
4,6
71
0 4
,671
5
,740
0
5,7
40
0 5
,740
Este
sna'
a 0
0 0
0 0
0 0
0
0 0
Late
pay
men
t pen
alty
for
LGs
paid
536
,485
0
536
,485
1
6,65
9 5
53,1
44
680
,634
0
680
,634
1
39,2
30
819
,864
Late
pay
men
t pen
altie
s fo
r de
btor
s of
LC
s 0
121
,819
1
21,8
19
0 1
21,8
19
0 8
48,3
50
848
,350
0
848
,350
Late
pay
men
t pen
alty
for
LGs
paid
0 2
51,2
64
251
,264
0
251
,264
0
92,
292
92,
292
0 9
2,29
2
Oth
er 0
0 0
0 0
0 1
4,55
1 1
4,55
1 0
14,
551
21,
806,
820
530
,261
22,
337,
081
82,
752
22,
419,
833
28,
160,
995
955
,193
29,
116,
188
222
,243
29,
338,
431
Gro
up
2017
2016
Ria
lFo
rex
Non
-pro
fit-
shar
ing
Tota
lR
ial
Fore
x (N
on-p
rofit
shar
ing)
Tota
lPr
ofit-
shar
ing
Non
-pro
fit-
shar
ing
Tota
lPr
ofit-
shar
ing
Non
-pro
fitsh
arin
gTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Inte
rest
on
stat
utor
y de
posi
t (sh
are
ofba
nk a
nd d
epos
itors
) 0
226
,649
2
26,6
49
0 2
26,6
49
0 2
06,9
80
206
,980
0
206
,980
Inte
rest
on
term
dep
osits
with
oth
erba
nks
1,3
72,3
70
14,
227
1,3
86,5
97
25,
984
1,4
12,5
81
1,5
11,3
16
21,
871
1,5
33,1
87
120
,600
1,6
53,7
87
Inte
rest
on
cert
ifica
tes
of d
epos
it, p
artic
ipat
ion
bond
s an
d ot
her d
ebt
secu
ritie
s 2
03,3
03
0 2
03,3
03
0 2
03,3
03
0 0
0 0
0
Earn
ings
from
fixe
d-in
com
e fu
nds
10,
757
0 1
0,75
7 0
10,
757
13,
006
0 1
3,00
6 0
13,
006
1,5
86,4
30 2
40,8
76 1
,827
,306
25,
984
1,8
53,2
90 1
,524
,322
228
,851
1,7
53,1
73 1
,753
,173
1,8
73,7
73
Par
ent c
ompa
ny
2017
2016
Ria
l F
orex
Non
-pro
fit-
shar
ing
Tota
lR
ial
Fore
x (N
on-p
rofit
shar
ing)
Tota
lPr
ofit-
shar
ing
Non
-pro
fit-
shar
ing
Tota
lPr
ofit-
shar
ing
Non
-pro
fitsh
arin
gTo
tal
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Inte
rest
on
stat
utor
y de
posi
t (sh
are
ofba
nk a
nd d
epos
itors
) 0
226
,649
2
26,6
49
0 2
26,6
49
0 2
06,9
80
206
,980
0
206
,980
Inte
rest
on
term
dep
osits
with
oth
erba
nks
1,3
72,3
70
0 1
,372
,370
2
5,98
4 1
,398
,354
1
,511
,316
0
1,5
11,3
16
120
,600
1
,631
,916
Inte
rest
on
cert
ifica
tes
of d
epos
it, p
artic
ipat
ion
bond
s an
d ot
her d
ebt
secu
ritie
s 2
03,3
03
0 2
03,3
03
0 2
03,3
03
0 0
0 0
0
Earn
ings
from
fixe
d-in
com
e fu
nds
10,
757
0 1
0,75
7 0
10,
757
13,
006
0 1
3,00
6 0
13,
006
1,5
86,4
30 2
26,6
49 1
,813
,079
25,
984
1,8
39,0
63 1
,524
,322
206
,980
1,7
31,3
02 1
20,6
00 1
,851
,902
Gro
up P
aren
t com
pany
Not
e20
1720
1620
1720
16
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Prof
it (l
oss)
rea
lized
on
inve
stm
ents
Div
iden
ds fr
om s
hare
s of
com
pani
es a
nd m
utua
l fun
ds35
-1 1
62,9
05
162
,341
1
,341
,605
5
33,3
23
Pro
fit (l
oss)
from
sal
es o
f com
pani
es' s
hare
s an
d m
utua
l fun
ds35
-2 2
,098
,706
(2
12,3
77)
3,7
31,5
69
(212
,357
)
Tota
l pro
fit (l
oss)
rea
lized
on
inve
stm
ents
2,26
1,61
1(5
0,03
6)5,
073,
174
320
,966
Pro
fit (l
oss)
from
incr
ease
(dec
reas
e) in
inve
stm
ents
val
ue
Net
pro
fit (l
oss)
from
incr
ease
(dec
reas
e) in
inve
stm
ents
val
ue35
-3(3
3,57
5) 2
80,8
09
(43,
615)
277
,827
Net
pro
fit (l
oss)
from
inve
stm
ents
2,2
28,0
36 2
30,7
73 5
,029
,559
598
,793
35-
Net
pro
fit (l
oss)
from
inve
stm
ents
124 125Financial Report
35-1- Dividends from companies and units of mutual funds in the parent company break down as follows:
2017 2016
Rial (profit-sharing)
forex (non-profit
sharing)Total Rial
(profit-sharing)
forex (non-profit
sharing)Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Satellite Communication Group 32,694 0 32,694 22,117 0 22,117 Saman Exchange Co. 212,216 0 212,216 120,578 0 120,578
Saman Electronic Payment Co. 481,478 0 481,478 185,933 0 185,933
Saman Insurance 62,348 0 62,348 14,837 0 14,837
Saman Brokerage Co. 4,801 0 4,801 1,537 0 1,537
Central Securities Depository and Settlement Co. 831 0 831 1,914 0 1,914
Iran Khodro Card Services 0 0 0 0 0 0
Iran Investment Co. 0 0 0 15,684 0 15,684
Iran Credit Rating Co. 3,212 0 3,212 5,139 0 5,139
Stock Exchange Co. 141 0 141 0 0 0
Iranian Credit Bureau and Scoring Co. 34,704 0 34,704 19,832 0 19,832
Saman Pardazeshgara Co. (Processing) 1,002 0 1,002 9,000 0 9,000
Sepehr Shargh Atieh Andishan Co. 2,502 0 2,502 0 0 0
Iran Energy Exchange 458 0 458 458 0 458
Aftab Tejarat Saman Co. 752 0 752 1,202 0 1,202
Middle East Bank 8,927 0 8,927 5,714 0 5,714
Shaparak Electronic Payment Co. 0 0 0 11,978 0 11,978
Kardan Investment Bank 427,374 0 427,374 16,566 0 16,566
Iran Fanavar Pars Investment Co. 9,000 0 9,000 2,400 0 2,400
Hamedan Glass Works 0 0 0 12,277 0 12,277
Iran Pump Manufacturing Co. 0 0 0 1,003 0 1,003
Dividends from long-term investments 1,282,440 0 1,282,440 448,169 0 448,169
Absal Co. 0 0 0 5 0 5 Irankhodro 31 0 31 185 0 185
Irka Part Industry 0 0 0 0 0 0
Bank Saderat 0 0 0 423 0 423
Bank Mellat 0 0 0 45 0 45
Bahman Leasing Co. 0 0 0 45 0 45
Shazand Petrochemical Co. 67 0 67 1 0 1
Fanavaran Petrochemical Co. 0 0 0 4 0 4
Maroon Petrochemical Co. 0 0 0 3 0 3
Tractor Manufacturing Co. 802 0 802 1 0 1
Arian Economic Development 0 0 0 317 0 317
Behshahr Industry Development 0 0 0 4,065 0 4,065
Shomal Drilling Co. 3,065 0 3,065 14,214 0 14,214
Tooka Transport Co. 4,613 0 4,613 1,830 0 1,830
Information Services 0 0 0 360 0 360
Exir Pharmaceutical Co. 0 0 0 43 0 43
Rayan Saipa 27 0 27 1,317 0 1,317
Alborz Investment Co. 0 0 0 0 0 0
Iran Khodro Investment Co. 0 0 0 799 0 799
Pars Tousheh Investment 0 0 0 9 0 9
Mines and Metals Development Investment Co. 0 0 0 6,879 0 6,879
Tosee Meli Investment Group Co. 0 0 0 6,520 0 6,520
Sarma Afarin 0 0 0 4 0 4
Barez Industrial Co. 0 0 0 1,066 0 1,066
Isfahan Mubarakeh Steel Co. 4,003 0 4,003 8,920 0 8,920
Khorasan Foulad Co. 0 0 0 220 0 220
Bahman Group 2,365 0 2,365 7,500 0 7,500
Mapna Group 1,844 0 1,844 1,590 0 1,590
2017 2016
Rial (profit-sharing)
forex (non-profit
sharing)Total Rial
(profit-sharing)
forex (non-profit
sharing)Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Iranian Leasing Co. 5,797 0 5,797 6,152 0 6,152 Ghadir Investment Co. 0 0 0 1,519 0 1,519
Bank Passargad 2,986 0 2,986 4,389 0 4,389
Fars and Khouzestan Cement Co. 0 0 0 340 0 340
Azarab 74 0 74 1 0 1
Piransharh Sugar 0 0 0 191 0 191 I. R. of Iran Shipping Lines 0 0 0 93 0 93 Sepah Investment Co. 0 0 0 11,780 0 11,780 Iran Construction Investment Co. 623 0 623 696 0 696
Tooka Foulad Investment Co. 6,348 0 6,348 2,478 0 2,478
Shahed Investment Co. 0 0 0 528 0 528
Copper 0 0 0 155 0 155
Ta'min Oil and Gas 0 0 0 156 0 156
Tehran Housing Investment Co. 0 0 0 311 0 311
Gharb Cement Co. 2 0 2 0 0 0
Sahand Tire 628 0 628 0 0 0
Iran Khak Chini 7 0 7 0 0 0
Iran Amlah Mining Co. 7 0 7 0 0 0
Khorasan Petrochemical Co. 4 0 4 0 0 0
Takin Co. 31 0 31 0 0 0
Khorasan Pegah 30 0 30 0 0 0Omid Investment Co. 2,172 0 2,172 0 0 0Kharazmi Investment Co. 10,439 0 10,439 0 0 0Iran Telecommunication 922 0 922 0 0 0Hamkaran System 15 0 15 0 0 0Tolid Darou Pharmaceutical Co. 6 0 6 0 0 0Parsian E-Commerce 4 0 4 0 0 0Tooka Rail 5,999 0 5,999 0 0 0Iran Kish Credit Card 17 0 17 0 0 0Mapna Power Generation - Asalouyeh 8 0 8 0 0 0Pakshoo Industrial Group 24 0 24 0 0 0Ghasem Iran 9 0 9 0 0 0Damavand Power Generation 24 0 24 0 0 0Mobin Petrochemical Co. 300 0 300 0 0 0Tooka Refractory Industry 285 0 285 0 0 0Fajr Petrochemical Co. 516 0 516 0 0 0Sobhan Oncology 10 0 10 0 0 0Iran Transfo 37 0 37 0 0 0Karafarin Bank 7 0 7 0 0 0Oil Industrial Development Co. 600 0 600 0 0 0Bank Sina 3,373 0 3,373 0 0 0 Mellat Insurance 874 0 874 0 0 0Piazar Agro-Industry Co. 76 0 76 0 0 0Alhavi Pharmaceutical Co. 26 0 26 0 0 0Parsian Bank 2 0 2 0 0 0Middle East Tide Water 15 0 15 0 0 0A.S.P. 18 0 18 0 0 0 Sina Port and Marine Industry Development Co. 15 0 15 0 0 0
Ansar Bank 5 0 5 0 0 0Shahed Civil and Development Co. 11 0 11 0 0 0Hekmat Bank 2 0 2 0 0 0Other 0 0 0 0 0 0
Dividend from short-term investments 59,165 0 59,165 85,154 0 85,154 Profit from units of mutual funds 0 0 0 0 0 0
Dividends from companies' shares andunits of mutual funds 1,341,605 0 1,341,605 533,323 0 533,323
126 127Financial Report
35-2- Profit (loss) from sales of companies’ shares and units of mutual funds in the parent company:
Saman Electronic Payment Co. 633,704,954 4,537,327 742,673 3,794,654 0Behshahr Industry Development Co. 0 0 0 0 (4,736)
Iranian National Copper Industries 0 0 0 0 (24,219)
Mines and Metals 4,111,879 5,640 10,851 (5,211) (26,586)
Isfahan Mubarakeh Steel Co. 68,369,127 90,256 84,798 5,458 (59,284)
Khorasan Steel Co. 0 0 0 0 (4,649)
Iran Construction Investment Co. 2,880,522 9,674 10,744 (1,070) (7,399)
Iran Telecommunication Co. 2,050,000 4,426 5,151 (725) (2,725)
Rena Investment Co. 0 0 0 0 12,524
Bank Tejarat 3,000,000 2,123 3,309 (1,186) 2,100
Shomal Drilling Co. 11,348,678 44,642 60,045 (15,403) (30,698)
Rayan Saipa Leasing Co. 2,481,522 8,136 7,656 480 10,025
Mapna Group 0 0 0 0 3,362
Ghadir Investment Co. 0 0 0 0 (2,495)
Azarab 3,000,000 13,570 17,067 (3,497) 438
Iran Khodro 10,350,000 37,663 35,408 2,255 7,104
Saipa 2,000,000 2,521 2,988 (467) (2,497)
Bank Mellat 5,000,000 5,840 9,812 (3,972) 2,212
Tosee Meli Investment Group Co. 0 0 0 0 (5,026)
Iranian Leasing Co. 2,199,048 3,207 4,235 (1,028) (2,084)
Sepah Investment Co. 24,129,271 33,706 52,753 (19,047) (34,892)
Post Bank 0 0 0 0 (6,272)
Passargad Bank 26,336,559 27,609 56,603 (28,994) (5,675)
Piranshahr Sugar Co. 0 0 0 0 (3,598)
Isfahan Steel Mill 150,000 379 374 5 (19,584)
Omid Investment Co. 4,000,000 5,805 8,183 (2,378) 0
Tehran Oil Refinary 0 0 0 0 (2,856)
Bahman Group 5,425,000 15,707 12,605 3,102 3,246
Kharazmi Investment Co. 12,929,305 12,369 18,169 (5,800) 374
Ta'min Oil, Gas & Petrochemical Co. 0 0 0 0 (3,673)
Fars - Khouzestan Cement 0 0 0 0 (1,782)
Hamedan Glass Works 0 0 0 0 3,446
Barez Industrial Co. 0 0 0 0 (1,206)
Iran Khodro Investment Development Co. 2,000,000 11,284 9,533 1,751 (7,632)
Plasco Kar 0 0 0 0 (1,329)
Khodro Diesel Co. 0 0 0 0 1,624
Piazar Agro-Industry 7,674,752 26,073 20,313 5,760 0
Mellat Insurance Co. 7,456,678 12,223 10,313 1,910 0
Oil Industry Investment 3,500,000 7,298 8,766 (1,468) 0
Data Processing Co. 2,333,973 8,621 6,385 2,236 0
Iran Khodro Card 0 0 0 0 1,304
Others 53,843,293 123,964 119,760 4,204 781
900,274,561 5,050,063 1,318,494 3,731,569 (212,357)
Profit (loss) from sales of mutual funds - rial (profit-sharing) 0 0 0 0 0
Profit (loss) from sales of companies' share - forex (non-profit sharing) 0 0 0 0 0
Profit (loss) from sales of mutual funds - forex (profit-sharing) 0 0 0 0 0
900,274,561 5,050,063 1,318,494 3,731,569 (212,357)
2017 2016
Number ofshares Net sale value Book value Profit (loss) Profit (loss)
Profit (loss) from sales of companies' shares - rial (profit-sharing) Share Rls (M) Rls (M) Rls (M) Rls (M)
35-2-1- In the early months of the year 2016 (about March), the bank owned 63% of shares in Saman Electronic Payment Co., out of which 15% was transferred to Saman Insurance Co., 5% to Sarmad Andoukhtehsazan Farda Co. and 15% to Atieh Andishan Sepehr Shargh Co. for the amount of Rls. 4, 563/- billion in total. Of this total figure, the amount of Rls. 200/-billion was paid in cash, the amount of Rls. 435/- billion was offset in exchange for real estate and residual balance would be received in instalments by the end of the year 1397 (March 20, 2019).
35-3- Profit (loss) from increase (decrease) in investments value
Mines and Metals Development Investment Co. 0 0 0 0 (5,063)Isfahan Mubarakeh Steel Mill 16,456,434 20,069 22,948 2,879 (810)
Iran Construction Investment Co. 8,911,790 33,256 21,318 (11,938) 2,656
Iran Telecommunication Co. 4,899 12 11 (1) 3
Bank Sina 19,277,199 33,303 19,422 (13,881) (1,361)
Shomal Drilling Co. 2,171,445 11,489 7,227 (4,262) (16,925)
Mapna Group 7,377,750 59,265 55,508 (3,757) 10,407
Azarab 0 0 0 0 246
Alborz Insurance 0 0 0 0 (164)
Iran Khodro 3,154,455 10,291 8,135 (2,156) 10,957
Bank Mellat 6,852,952 13,448 7,494 (5,954) (621)Shahed Investment Co. 0 0 0 0 112
Iranian Leasing Co. 29,493,077 56,198 45,214 (10,984) (14,436)
Sepah Investment Co. 0 0 0 0 (21,661)
Bank Saderat 11,600,000 12,884 10,389 (2,495) (693)
Passargad Bank 0 0 0 0 (22,927)
Tooka Rail 19,186,128 50,318 40,161 (10,157) (861)
Tooka Foulad Investment Co. 43,522,499 58,654 52,206 (6,448) 17
Tooka Foulad Investment Co. - Rights issue 6,750,000 2,346 1,235 (1,111) 0
Bahman Group 14,920,000 35,268 26,254 (9,014) 14,251
Sahand Tire Manufacturing Co. 0 0 0 0 (811)
Kharazmi Investment Co. 30,000,000 42,158 23,871 (18,287) (4,457)
Tooka Transport Co. 8,998,711 19,935 25,498 5,563 3,295
Iran Khodro Investment Development 500,000 2,388 1,745 (643) 1,125
Mobin Petrochemical Co. 0 0 0 0 (85)
Tractor Manufacturing Co. 0 0 0 0 (268)
Fajr Petrochemical Co. 0 0 0 0 (334)
Tooka Refractory Industries 0 0 0 0 (92)
Piazar Agro-Industry Co. 0 0 0 0 (258)
Shahed Civil and Development Co 0 0 0 0 4
Damavand Power Generation Co. 0 0 0 0 18
Middle East Life Insurance 200,000 100 98 (2) 97
Bahman Investment Co. 0 0 0 0 51
Oil Industry 1,000,000 2,504 1,783 (721) 0
Shiraz 1 Petrochemical Urine 2,000 14,037 16,159 2,122 0
Ansar - Rights Issue 6,481 7 4 (3) 0
Alhavi Pharmaceutical Co. 1,277,010 6,204 5,366 (838) 0
Talise Livestock Breeding 189,860 1,628 1,674 46 0
Informatic Services Co. 144,757 2,702 2,723 21 0
A.S.P. 932,047 1,120 926 (194) 0
Plastiran 309,535 575 260 (315) 0
Adjustment of impairment loss reserves from previous year 0 0 0 48,915 326,415
490,159 397,629 (43,615) 277,827 Profit (loss) from increase (decrease) in investments value - forex (non-profit sharing)
0 0 0 0 0
490,159 397,629 (43,615) 277,827
2017 2016
Number ofshares Cost price Market value Profit (loss) Profit (loss)
Net profit (loss) from increase (decrease) in investments value - rial (profit-sharing) Share Rls (M) Rls (M) Rls (M) Rls (M)
128 129Financial Report
Bank’s share of sources from profit-sharing incomes is calculated as follows:
• Should the shared uses be less than the total free resources of investment deposits, the bank’s resources and accordingly its share from the profit-sharing incomes will drop to nil (zero-sum).
• The bank share of resources out of the shared uses means the shared uses deducted from the free resources of investment deposits. Should the total free resources of investment deposits exceed the shared uses, the surplus thereof will be named the surplus free resources of investment deposits.
36-1- Bank’s share from profit-sharing incomes
36-2- Distribution of shared resources and uses between the depositors and the bank
Financial year Bank's share of sources to total uses ratio (38-2)
Profit-sharing incomes
Bank’s share ofsources from
profit-sharing incomes
Percentage Rls (M) Rls (M)
2016 0 30,284,106 0
2017 0 28,422,807 0
2017 2016 Average
Rls (M) Rls (M)
Average shared uses (36-2-1) 130,350,703 126,086,695 53-week average
Average balance of investment deposits (36-2-2) 182,978,252 161,262,915 53-week average
Less: Statutory deposit from investment deposits (21,432,804) (19,364,895) 53-week average
Free resources of investment deposits 161,545,448 141,898,020
Bank’s share of sources out of shared uses (Surplus free resources of investment deposits)
31,194,745 (15,811,325)
36-2-1- Average shared uses
2017 2016
Items of shared uses Amount (average) Amount (average)
Rls (M) Rls (M)
Net uses related to loans 119,870,957 117,151,335
Net uses related to investment deposits with other banks 6,658,342 6,511,657
Net uses related to investment in shares and other securities 3,821,403 2,423,702
Total uses related to shared operations 130,350,702 126,086,694
36- Bank’s share from profit-sharing incomes
36-3- The interest on statutory deposit from investment deposits is as follows:
37-1- Stated management fee (MF)
36-2-2- Average investment deposits
2017 2016
Investment deposits Amount (average) Amount (average)
Rls (M) Rls (M)
One-year term 68,536,213 54,701,759
Two-year term 73,495 3,080,983
Three-year term 66,513 81,554
Four-year term 77,185 73,953
Five-year term 16,287,017 21,838,126
General certificates of deposit 0 0
Ordinary short-term deposits 96,139,447 80,930,664
Investment deposits received from banks and credit institutions 1,040,221 171,329
Special short-term deposits 758,157 384,544
Average investment deposits 182,978,248 161,262,912
2017 2016
Rls (M) Rls (M)
Average statutory deposit of investment deposits 21,432,804 19,364,895
Interest on statutory deposit (at one percent rate of average resources) 215,922 196,005
The bank’s management fee for the fiscal year 2016-2017 was calculated at the rate of 3% on the basis of the minutes dated September 25, 2016.
Management fee = Fee rate x Average shared uses3,910,522 = %3 x 130,350,703
Stated MF Calculated MF
Rate (Percentage) Amounts in Rls (M) Rate (Percentage) Amounts in Rls (M)
Ordinary short-term deposits 3 2,549,499 2.14 2,054,645
Special short-term deposits 3 20,042 2.14 16,203
General certificates of deposit 3 0 2.14 0
One-year term 3 1,817,043 2.14 1,464,723
Two-year term 3 1,950 2.14 1,571
Three-year term 3 1,764 2.14 1,422
Four-year term 3 2,047 2.14 1,649
Five-year term 3 422,809 2.14 348,078
Investment deposits received from banks and creditinstitutions 3 31,206 2.14 22,231
4,846,360 3,910,522
37- Deposits management fee
130 131Financial Report
Pursuant to the directive No. 94/69383 of June 10, 2015 the expenses for depositors’ surplus resources are calculated as follows:
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Interest on short-term deposits 13,443,317 13,053,603 13,504,958 13,108,509
Interest on special short-term deposits 130,924 85,882 130,924 85,882
Long-term deposits
One-year term 13,385,846 12,031,615 13,385,846 12,031,615
Two-year term 12,401 676,650 12,401 676,650
Three-year term 13,740 19,244 13,740 19,244
Four-year term 15,452 15,446 15,452 15,446
Five-year term 4,341,813 5,203,195 4,341,813 5,203,850
General certificates of deposit 1,222 129,197 1,222 129,197
Investment deposits received from banks and credit institutions 141,045 40,212 141,045 40,212
31,485,760 31,255,044 31,547,401 31,310,605
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Interest on investment deposits in rial 40-1 31,485,760 31,255,044 31,547,401 31,310,605
Interest on special certificates of deposit 0 0 0 0
Interest on foreign currency deposits 400,514 490,906 400,514 490,906
31,886,274 31,745,950 31,947,915 31,801,511
40-1- Reconciliation statement of provisional interests paid on investment deposits in Rial along with interest expenses incurred on investment deposits.
2017 2016
Rls (M) Rls (M)
Provisional interest paid on investment deposits (Note 39) 31,547,401 31,310,605
Plus (less): Differential in interest payable to depositors (surplus of interest paid todepositors - brought from the statement of investment deposits performance)
(17,218) (815,452)
Final interest accrued to investment deposits 31,530,183 30,495,153
Plus: Final interest paid to depositors (equivalent to surplus interest paid to depositors) 17,218 815,452
Interest on investment deposits in rial 31,547,401 31,310,605
38- Compensation of expenses related to depositors' free resource surplus to profit-sharing uses
39- Provisional interests paid on investment deposits
40- Interest expenses on deposits
41-1- Net fees for free-interest transactions are as follows:
2017 2016
Rls (M) Rls (M)
Fees received for interest-free loans 23,945 5,685
Fees for prizes on interest-free deposits (816) (816)
Net fees for interest-free loans 23,129 4,869
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Net fees for interest-free (Gharzolhasaneh) transactions 41-1 23,129 4,869 23,129 4,869
Fees for LCs opened 47,214 37,175 47,214 37,443
Fees for LCs issued 73,722 60,271 78,358 60,869
Forex transactions 58,801 52,161 58,801 52,161
Fees for managed funds 0 21 0 21
Banking drafts 144,945 122,075 126,125 122,075
Collaterals valuation 0 0 0 0
Processing customer's files 0 0 0 0
Credit cards subscription 17,673 51,742 17,673 51,742
Fees for Shetab Payment System 747,377 615,176 747,377 615,176
Fees received from holders of special certificates of deposits 0 0 0 0
Fees from SMS (short banking messages) 67,706 61,856 67,706 61,856
Sale of insurance services 60,868 52,561 60,868 52,561
Other 101,932 57,249 101,932 57,249
1,343,367 1,115,156 1,329,183 1,116,022
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Fees paid to Shetab Payment System 420,771 460,459 420,771 460,459
Fees paid to other banks 1,063,987 1,242 1,063,987 1,242
Clearing house fees 0 0 0 0
Membership fees for deposits guarantee 0 208,192 0 208,192
Fees paid to brokers 121,569 3,466 121,569 3,466
Fees paid to persons/entities 53,267 428,366 235,284 469,900
Other 1,520 811 1,520 811
1,661,114 1,102,536 1,843,131 1,144,070
42- Fee and commission expenses
41- Fee and commission incomes
31,194,744 x (28,422,807/130,350,703) = 6,801,974
Profit-sharing incomes
Average shared usesSurplus free resources of investment deposits to shared uses x
132 133Financial Report
Group
2017 2016
Rls (M) Rls (M)
Sales and services rendered 57,931,529 41,119,595
Return from sales and reductions (in subsidiaries) (113) 0
57,931,416 41,119,595
Group
2017 2016
Rls (M) Rls (M)
Cost price of goods and services rendered 56,688,318 39,901,118
56,688,318 39,901,118
43-1- The income earned from sales and services rendered is mainly related to the foreign currency trading (sales) by the Saman Foreign Exchange Company.
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Profit from forex trading (buying & selling) 1,297,131 168,217 1,288,353 168,217
Profit (Loss) from foreign exchange translation 77,864 1,129,154 96,212 1,127,653
1,374,995 1,297,371 1,384,565 1,295,870
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Profit (loss) from sale of tangible fixed and intangible assets 46-1 2,244,000 0 2,244,000 0
Profit (loss) from sale of foreclosed collaterals 3,283,866 2,880,251 3,283,508 2,866,384
Professional (loan processing) fees 46-2 181,129 319,636 181,129 320,220
Others 439,171 223,025 497,920 193,197
6,148,166 3,422,912 6,206,557 3,379,801
43- Income from sales and services rendered
44- Cost price of sales and services rendered
45- Profit (loss) from foreign currency exchanges and transactions
46- Net other incomes and expenses
46-1- Profit (loss) from sale of fixed assets breaks down as follows:
46-2- The income from professional (loan processing) fees is related to the fees received from customers for due diligence and processing of their loans applications.
47-1- The personnel expenses break down as follows:
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Personnel expenses 47-1 2,374,663 2,089,693 2,187,644 1,911,860
Other administrative expenses 47-2 1,519,567 1,472,528 1,398,407 1,372,814
3,894,230 3,562,222 3,586,051 3,284,674
2017 2016
Cost Book value Amount sold Profit (loss) Profit (loss)
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Land 302,253 302,253 691,742 389,489 0
Buildings 281,777 212,922 644,881 431,960 0
Goodwill for place of business 1,103,935 1,103,934 2,526,486 1,422,551 0
Furniture and fixtures 0 0 0 0 0
Motor vehicles 0 0 0 0 0
Royalties 0 0 0 0 0
Installations 0 0 0 0 0
Assets in process of completion 0 0 0 0 0
Orders and capital prepayments 0 0 0 0 0
Capital items in stock 0 0 0 0 0
1,687,965 1,619,109 3,863,109 2,244,000 0
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Salaries, wages and benefits 1,667,856 1,432,551 1,515,337 1,288,509
Social security insurance - employer's contribution 292,318 249,428 277,599 236,398
Employees' termination and pension benefits 160,284 142,474 150,919 134,498
Business travels and allowances 37,252 21,974 35,831 20,017
Other 216,953 243,266 207,958 232,438
2,374,663 2,089,693 2,187,644 1,911,860
47- Administrative and general expenses
134 135Financial Report
47-2- The administrative expenses break down as follows:
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Office rents 299,112 290,966 294,827 285,883
Expenses for advertisement and marketing 189,547 382,296 182,731 375,196
Purchase of contractual services 187,284 61,101 179,897 53,691
Utilities: water and electricity 96,866 96,538 95,354 94,928
Personnel transportation cost 14,670 12,057 13,195 10,836
Office supplies and consummables 58,471 58,635 54,355 53,449
Automation expenses 49,539 50,843 49,834 51,674
Insurance espenses 86,651 116,129 64,301 95,125
Auditing ans consulting fees 68,331 53,776 53,645 39,984
Gifts, presents and prizes 2,490 4,294 2,032 4,000
Repairs and maintenance of tangible fixed-assets 45,784 22,868 44,383 21,132
Protocol and refreshment expenses 129,403 115,441 126,779 112,849
Training and research 4,316 5,056 3,326 4,183
Transportation charges 6,266 2,947 3,208 2,947
Satellite communication expenses 12,114 26,536 12,114 26,536
Bonuses and remuneration for board members 0 19,200 0 19,200
Attendance bonus for non-executive board members 0 0 0 0
Other expenses 268,723 153,845 218,426 121,202
1,519,567 1,472,528 1,398,407 1,372,814
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Specific expenses for doubtful debts, loans and claims 304,240 715,293 300,000 674,686
General expenses for loans and claims 0 92,376 0 91,274
304,240 807,669 300,000 765,960
48- Expenses for doubtful debts
48-1- The specific expenses for doubtful debts incurred for the loans granted and the amounts due are calculated as follows:
48-2- General expenses for the loans granted and amounts due are as follows:
2017 2016
Overdue Outstanding Doubtful
debts up to 5 years
Doubtful debts more than 5
yearsTotal Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Balance of loans granted and non-current loans atyear-end
Governmental entities 0 0 0 0 0 0
Non-governmental entities/persons 2,217,780 4,477,815 44,294,460 0 50,990,055 43,497,539
Balance of other accounts receivable at year-end 0 0 0 0 0 0
Amounts due from subsidiary and affiliated companies 0 0 0 0 0 0
Other accounts receivable 0 0 0 0 0 0
2,217,780 4,477,815 44,294,460 0 50,990,055 43,497,539
Less: collaterals value by calculating risk factors
Savings and investment deposits (56,936) (10,488) (9,651) 0 (77,075) (80,780)
Participation bonds and other debt securities guaranteed by the government and CBI 0 0 0 0 0 (4,456)
Participation bonds and other debt securities guaranteed by other banks 0 (800) (800) 0 (1,600) 0
Banking LGs 0 0 0 0 0 0
LCs transacted 0 0 0 0 0 0
Shares listed on the stock exchange (1,031,477) 0 (43,337) 0 (1,074,814) (936,624)
Real estates (5,894,749) (2,179,662) (28,290,366) 0 (36,364,777) (25,019,346)
Machinary (17,548) (44,818) (74,574) 0 (136,940) (196)
(7,000,710) (2,235,768) (28,418,728) 0 (37,655,206) (26,041,402)
Base balance for calculating specific provision 793,095 2,242,045 8,118,172 0
Base factor for calculating specific provision - percentage 10 20 50 100-50
Specific provision for doubtful debts 79,309 448,409 4,059,086 0 4,586,804 4,286,804
Plus: specific provision for renewed and restructuredloans 0 0 0 0 0 0
Less: Balance of provision for doubtful debts duringthe year (108,620) (203,253) (3,974,932) 0 (4,286,804) (3,520,844)
Plus: written-off loans during the year 0 0 0 0 0 0
Specific provision for doubtful debts, loansgrantedcand amounts due (29,311) 245,156 84,154 0 300,000 765,960
2017 2016
Rls (M) Rls (M)
Balance of amounts due from the government 0 0
Balance of loans granted to governmental entities 0 0
Balance of loans granted to non-governmental entities/persons 133,962,716 132,900,503
Balance of interim accounts (temporary debtors) related to loans 2,239,022 1,189,344
Balance of debts for term LCs 473,190 63,059
Amounts due from subsidiary and affiliated companies 3,578,946 1,030,522
Other accounts receivable 4,284,044 5,027,631
Less:
Balance of loans granted and the amounts for which specific provision has been calculated (24,905,959) (20,579,100)
Base balance for calculating general provision 119,631,959 119,631,959 Base factors for calculating general provision - (percentage) 1.5 1.5
General provision for loans granted and amounts due 1,794,479 1,794,479
Less: balance of general provision for loans granted and amounts due at year-end (1,794,479) (1,703,205)Plus: written loans during the year 0 0
General provision for loans granted and amounts due 0 91,274
136 137Financial Report
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Financial expenses of debt securities 0 49,863 0 49,863
Interest and late payment penalties on facilities received from Central Bank 1,788 9,329 1,788 9,329
Interest on facilities received from other bank and credit institutions 0 0 0 0
Late payment penalty paid 0 0 0 0
Late payment penalty for overdraft from current account with CBI 0 0 0 0
Consolidated financial expenses 109,528 198,391 0 0
111,316 257,583 1,788 59,192
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Prior years' adjusted income tax (177) (766,544) 0 (712,736)
Adjusted value added tax (VAT) 0 (4,543) 0 0
Adjusted withholding tax and prior years' interests 0 (988) 0 0
Adjusted insurance premiums 162 (49,218) 0 (32,258)
Adjusted income 0 (1,108) 0 0
Other expenses 49 (27,455) 0 0
34 (849,856) 0 (744,994)
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Tangible fixed assets depreciation 405,227 386,572 391,808 359,079
Intangible assets depreciation 68,598 64,746 53,401 63,588
473,825 451,318 445,209 422,667
49-1- The expenses paid for Sukuk bonds were related to prior years’ bonds which were settled in the beginning of 2015.
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Accumulated effects of changes in accounting standards 51-1 0 0 0 0
Adjustment of errors 51-2 34 (849,856) 0 (744,994)
34 (849,856) 0 (744,994)
51-1- In 2016-2017 no changes have been made in accounting standards compared to 2015-16.
51-2- The adjustment of errors includes the following items:
49- Financial expenses
50- Depreciation/amortization expenses
51- Prior years’ adjustments
51
-3-
In o
rder
to
prov
ide
a fa
ir p
rofil
e of
the
fin
anci
al p
ositi
on a
nd t
he r
esul
ts o
f op
erat
ions
, all
rele
vant
com
para
tive
item
s in
the
com
para
tive
finan
cial
sta
tem
ents
hav
e be
en a
men
ded
and
rest
ated
. Fo
r th
is r
easo
n, s
ome
of t
he i
tem
s so
com
pare
d m
ay n
ot n
eces
sari
ly c
orre
spon
d w
ith t
hose
in
the
finan
cial
sta
tem
ents
pre
sent
ed f
or t
he p
revi
ous
fisca
l ye
ar.
G
roup
Par
ent c
ompa
ny
Not
e B
alan
ce o
f fin
anci
al s
tate
men
ts 2
015-
2016
pre-
amen
dmen
t
Am
endm
ents
and
cla
ssifi
edad
just
men
ts
D
ebit
Cr
edit
Bal
ance
of f
inan
cial
sta
tem
ents
201
5-20
16po
st-a
men
dmen
t
Bal
ance
of f
inan
cial
sta
tem
ents
201
5-20
16pr
e-am
endm
ent
Am
endm
ents
and
cla
ssifi
edad
just
men
ts
Deb
it
Cr
edit
Bal
ance
of f
inan
cial
sta
tem
ents
201
5-20
16po
st-a
men
dmen
t
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Cas
h9
49,
598,
567
1,1
18,2
04
0 5
0,71
6,77
1 0
0 0
0
Due
from
ban
ks a
nd o
ther
cre
dit
inst
itutio
ns10
12,
700,
246
133
,405
0
12,
833,
651
12,
700,
247
133
,404
0
12,
833,
651
Loa
ns g
rant
ed to
and
am
ount
s du
e fr
omno
n-go
vern
men
tal e
ntiti
es11
127
,203
,746
0
511
,881
1
26,6
91,8
65
127
,499
,869
0
511
,882
1
26,9
87,9
87
Inve
stm
ent i
n sh
ares
and
oth
er s
ecur
ities
12 1
,532
,003
0
609
1
,531
,394
0
0 0
0
Long
-ter
m in
vest
men
t in
affil
iate
s13
649
,334
0
25,
159
624
,175
0
0 0
0
Amou
nts
due
from
sub
sidi
arie
s an
d af
filia
tes
14 6
7,82
0 1
4,37
8 0
82,
198
0 0
0 0
Trad
e ac
coun
ts r
ecei
vabl
e 1
,581
,862
0
1,5
81,8
62
0 0
0 0
0
Oth
er a
ccou
nts
rece
ivab
le15
5,9
91,1
84
842
,253
0
6,8
33,4
37
5,7
85,0
71
(133
,405
) 0
5,6
51,6
66
Ord
ers
and
prep
aym
ents
16 1
20,4
06
0 7
9,59
6 4
0,80
9 0
0 0
0
Tang
ible
fixe
d as
sets
18 6
,093
,809
1
5,63
4 0
6,1
09,4
43
3,5
93,8
57
0 0
3,5
93,8
57
Inta
ngib
le a
sset
s19
4,1
27,9
73
161
0
4,1
28,1
34
0 0
0 0
Oth
er a
sset
s21
30,
313,
408
0 5
11,8
80
29,
801,
528
30,
255,
726
0 6
49,6
75
29,
606,
051
134
,527
0
134
,527
0
0
0 0
0
Due
to b
anks
and
oth
er c
redi
t ins
titut
ions
22 3
0,31
7,69
0 2
,645
,504
0
27,
672,
186
29,
687,
714
2,6
45,5
04
0 2
7,04
2,21
0
Cus
tom
ers'
dep
osits
23 2
1,82
7,13
7 2
0,67
0 0
21,
806,
467
21,
933,
899
48,
822
0 2
1,88
5,07
7
Div
iden
ds p
ayab
le24
187
,071
0
9,6
62
196
,733
0
0 0
0
Trad
e ac
coun
ts p
ayab
le 1
,129
,579
1
,129
,579
0
0 0
0 0
0
Adva
nces
rec
eive
d25
68,
700
26,
721
0 4
1,97
9 0
0 0
0
Tax
inco
me
prov
isio
n26
168
,610
0
2,8
29
171
,440
0
0 0
0
Res
erve
s an
d ot
her
liabi
litie
s27
5,0
34,7
05
0 1
,575
,583
6
,610
,288
0
0 0
0
Inve
stm
ent d
epos
itor'
s eq
uity
29 1
90,8
63,0
78
0 2
,645
,504
1
93,5
08,5
82
191
,528
,292
0
2,6
45,5
03
194
,173
,795
Lega
l res
erve
31 1
,597
,388
1
,499
0
1,5
95,8
89
0 0
0 0
Accu
mul
ated
ear
ning
s 1
,215
,721
1
,158
,905
0
56,
816
1,2
02,1
45
1,1
12,7
37
0 8
9,40
8
Min
ority
inte
rest
33 5
16,5
78
0 2
7,80
9 5
44,3
86
0 0
0 0
7,1
06,9
13 7
,106
,901
3,8
07,0
62 3
,807
,060
138 139Financial Report
G
roup
Par
ent c
ompa
ny
Not
e B
alan
ce o
f fin
anci
alst
atem
ents
201
5-20
16 pr
e-am
endm
ent
Am
endm
ents
and
cla
ssifi
edad
just
men
ts
Deb
it
Cr
edit
Bal
ance
of f
inan
cial
stat
emen
ts 2
015-
2016
post
amen
dmen
t
Bal
ance
of f
inan
cial
sta
tem
ents
201
5-20
16pr
e-am
endm
ent
Am
endm
ents
and
cla
ssifi
edad
just
men
ts
Deb
it
Cr
edit
Bal
ance
of f
inan
cial
sta
tem
ents
201
5-20
16po
st-a
men
dmen
t
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Inco
me
from
loan
s gr
ante
d an
d de
posi
ts in
othe
r ba
nks
34 3
1,07
1,10
1 0
13,
006
31,
084,
107
31,
177,
327
0 1
3,00
6 3
1,19
0,33
3
Fee
and
com
mis
sion
inco
mes
41 1
,131
,267
1
6,11
1 0
1,1
15,1
56
1,1
31,2
67
816
0
1,1
16,0
22
Fee
and
com
mis
sion
exp
ense
s42
1,1
23,3
73
0 2
0,83
7 1
,102
,536
1
,144
,069
0
0 1
,144
,069
Inco
me
from
sal
es a
nd s
ervi
ces
rend
ered
43 4
1,11
5,25
6 0
4,3
39
41,
119,
595
0 0
0 0
Cos
t pri
ce o
f sal
es a
nd s
ervi
ces
rend
ered
44 3
9,91
3,18
5 0
12,
067
39,
901,
118
0 0
0 0
Net
pro
fit (l
oss)
from
inve
stm
ents
35 2
44,7
92
14,
019
0 2
30,7
73
611
,799
1
3,00
6 0
598
,793
Net
pro
fit (l
oss)
from
fore
x ex
chan
ges
and
tran
sact
ions
45 1
,297
,386
1
5 0
1,2
97,3
71
0 0
0 0
Net
oth
er in
com
es a
nd e
xpen
ses
46 3
,423
,956
1
,044
0
3,4
22,9
12
3,3
79,8
01
0 0
3,3
79,8
02
Adm
inis
trat
ive
and
gene
ral e
xpen
ses
47 3
,542
,861
1
9,36
1 0
3,5
62,2
22
3,2
85,4
89
(815
) 0
3,2
84,6
74
Expe
nses
for
doub
tful
deb
ts48
407
,669
4
00,0
00
0 8
07,6
69
365
,960
4
00,0
00
0 7
65,9
60
Dep
reci
atio
n ex
pens
es50
452
,039
0
721
4
51,3
18
0 0
0 0
Gro
up s
hare
from
inco
me
earn
ed b
y af
filia
tes
15 1
74,1
75
0 4
22
174
,597
0
0 0
0
Min
ority
inte
rest
from
net
pro
fit 1
28,0
50
5,5
61
0 1
33,6
11
0 0
0 0
Pri
or y
ears
' adj
ustm
ents
95,
047
754
,809
0
849
,856
3
2,25
7 7
12,7
36
0 7
44,9
93
Lega
l res
erve
100
,841
0
623
1
0021
8 0
0 0
0
1,2
10,9
20 5
2,01
5 1
,125
,743
13,
006
Acc
umul
ated
ear
ning
s1,
158,
905
1,11
2,73
7
The reconciliation statement of net profit along with the net cash inflow from operating activities breaks down as follows:
The major non-cash transactions during the year break down as follows:
Group Parent company
2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Net profit (loss) (1,634,725) 482,504 84,666 102,745
Depreciation/amortization expense 509,243 955,483 445,209 422,667
Net increase (decrease) in provision for employees' termination andpension benefits 97,458 139,719 122,677 118,327
Net increase (decrease) in income tax payable (302,958) (187,868) 0 0
Profit (loss) from sale of non-operating real estates (2,244,001) 0 (2,244,001) 0
Profit (loss) from sale of tangible fixed and intangible assets (3,283,866) (2,880,252) (3,283,508) (2,866,385)
Net increase (decrease) in financial expenses payable 0 0 0 0
Net profit (loss) from cash foreign currency translation (77,865) (1,129,155) (96,213) (1,127,654)
(6,936,714) (2,619,569) (4,971,170) (3,350,300)
Net increase (decrease) in operating liabilities
Due to banks and other credit institutions (21,921,716) 297,329 (21,566,922) 36,951
Customers' deposits (4,699,905) 154,730 (4,786,705) 190,145
Debt securities 0 (1,000,000) 0 (1,000,000)
Operating portion of provisions and other debts 4,183,035 (1,487,199) 4,544,647 (1,433,353)
Investment depositors' equity 20,151,158 34,596,373 20,679,253 34,494,860
(2,287,428) 32,561,233 (1,129,727) 32,288,603
Net (increase) decrease in operating assets
Due from banks and other credit institutions 3,157,621 (883,585) 3,024,216 (750,181)
Amounts due from the government 0 0 0 0
Loans granted to and amounts due from governmental entities 0 0 0 0
Loans granted to and amounts due from non-governmental entities/persons (840,420) (8,948,692) (762,214) (8,876,306)
Investment in shares and other securities (688,340) (579,591) 460,774 (793,449)
Due from subsidiaries and affiliates (505,135) 56,778 (2,548,425) 155,697
Other accounts receivable (636,431) (3,840,897) 307,274 (5,148,937)
Statutory deposit (1,904,359) (1,619,060) (1,904,359) (1,619,060)
Operating portion of other assets (10,804,309) (4,078,881) (11,195,952) (3,806,983)
(12,221,373) (19,893,928) (12,618,686) (20,839,219)
Net cash inflow (outflow) from operating activities (21,445,515) 10,047,736 (18,719,583) 8,099,084
Note March 20, 2017 March 20, 2016
Rls (M) Rls (M)
Assets acquisition in exchange for loans granted 53-1 3,540,105 11,214,008
Assets offset for loans granted 53-2 0 0
Restructured loans (to renew previous loans) 5,174,295 4,040,629
Exchange of assets 53-3 316,427 684,677
Capital increase from dividends accrued to shareholders 0 0
Capital increase from assets revaluation reserve 0 0
9,030,827 15,939,314
52- Reconciliation statement of net profit
53- Non-cash transactions
140 141Financial Report
53-1- During the reporting year, the following assets have been foreclosed/acquired:
53-2- During the fiscal year ended March 20, 2017, this bank did not offset any asset with the loans granted.
53-3- During the reporting year, the following assets were exchanged:
March 20, 2017
Type of asset foreclosed Type of customerrelationship
Debt amount at theforclosure date
Value of forclosed assetappraised by expert
Amount paid/debt remission
Debt balance afterforeclosure
Rls (M) Rls (M) Rls (M) Rls (M)
Residential properties Unrelated customer 3,297,991 2,034,759 0 2,494,413
Business/office properties Unrelated customer 73,944 642,504 0 7,144
Shares Unrelated customer 0 0 0 0
Participation bonds Unrelated customer 0 0 0 0
Factory and equipment Unrelated customer 588 492,000 0 96,468
Land Unrelated customer 645,369 370,842 0 478,846
4,017,892 3,540,105 0 3,076,871
March 19, 2016
Type of asset foreclosed Type of customerrelationship
Debt amount at theforclosure date
Value of forclosed assetappraised by expert
Amount paid/debt remission
Debt balance afterforeclosure
Rls (M) Rls (M) Rls (M) Rls (M)
Residential properties Unrelated customer 7,665,988 4,488,737 0 3,576,806
Business/office properties Unrelated customer 1,563,123 2,844,127 44,953 51,049
Shares Unrelated customer 0 0 0 0
Participation bonds Unrelated customer 0 0 0 0
Factory and equipment Unrelated customer 7,986,328 3,716,362 0 4,271,131
Land Unrelated customer 19,111 164,782 0 556
17,234,550 11,214,008 44,953 7,899,542
March 20, 2017
Type of asset transferred Type of partyrelationship
Type of assetacquired
Book value of asset transferred
Value of asset appraised by expert
Difference in amountreceived/paid
Rls (M) Rls (M) Rls (M)
Residential properties - - 0 0 0
Business/office properties - - 0 0 0
Shares Shareholder Residential properties 316,427 435,000 140,000
Participation bonds - - 0 0 0
Factory and equipment - - 0 0 0
Land - - 0 0 0
316,427 435,000 140,000
March 19, 2016
Type of asset transferred Type of partyrelationship
Type of assetacquired
Book value of asset transferred
Value of asset appraised by expert
Difference in amountreceived/paid
Rls (M) Rls (M) Rls (M)
Residential properties Unrelated customer Residential properties 80,000 40,000 40,000
Business/office properties Unrelated customer Business/officeproperties 367,177 234,959 132,217
Shares Unrelated customer Shares 0 0 0
Participation bonds Unrelated customer Participation bonds 0 0 0
Factory and equipment Unrelated customer Factory and equip-ment 0 0 0
Land Unrelated customer Land 237,500 188,250 49,250
684,677 463,209 221,467
54-
Off
-bal
ance
she
et it
ems
54
-1-
Th
e o
bli
ga
tio
ns f
or
lett
ers
of
cre
dit
(L
Cs)
– in
ria
l a
nd
fo
rex
54
-1-1
- Th
e st
atem
ent o
f obl
igat
ions
ple
dged
by
the
pare
nt c
ompa
ny u
nder
lette
rs o
f cre
dit i
n fo
reig
n cu
rren
cy b
reak
s do
wn
as fo
llow
s:
Mar
ch 2
0, 2
017
Bal
ance
at t
he b
egin
ning
of t
he y
ear
Ope
ned
duri
ng th
e ye
arCr
edite
d (c
ance
lled)
dur
ing
the
year
Eff
ects
of
exc
hang
e r
ate
duri
ngth
e ye
ar
Bal
ance
at t
he y
ear
end
Typ
e of
curr
ency
Num
ber
Fore
x am
ount
Am
ount
in r
ial
Num
ber
Fore
x am
ount
Am
ount
in r
ial
Num
ber
Fore
x am
ount
Am
ount
in r
ial
Am
ount
in r
ial
Num
ber
Fore
x am
ount
Am
ount
in r
ial
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)
Euro
1844
,850
,349
1,5
21,9
96
2521
1,98
6,04
5 7
,387
,925
8
208,
402,
242
7,26
3,02
641
,082
35
48,4
34,1
521,
687,
980
Swis
s Fr
anc
21,
440,
689
44,
564
068
,745
,969
2,2
32,9
37
153
,196
,227
1,72
7,86
62,
230
1
16,9
90,4
3155
1,86
8
Swed
ish
Kro
na1
4,31
6,50
0 1
5,86
7 0
00
00
0(3
1) 1
4,
316,
500
15,8
39
Dem
and/
call
Turk
ish
Lira
34,
799,
620
50,
640
119
,272
,646
172
,393
2
24,0
22,0
1121
4,87
6(7
,709
) 2
50
,255
450
Kor
ean
Won
4115
,990
,236
,165
411
,924
22
106,
915,
743,
728
3,0
68,4
81
3799
,259
,878
,300
2,84
8,75
846
,995
26
23,6
46,1
01,5
9367
8,64
3
Japa
nese
Yen
513
9,50
3,00
1 3
7,55
2 9
840,
466,
562
241
,819
3
747,
261,
001
215,
001
2,58
4 1
1 23
2,70
8,56
266
,954
Chi
nese
Yua
n24
122,
669,
732
571
,027
31
210,
870,
353
991
,512
22
268,
211,
756
1,26
1,13
15,
765
33
65,3
28,3
3030
7,17
3
UAE
Dir
ham
295
,064
782
0
00
00
056
2
95,0
6483
9
Indi
an R
upee
381,
717,
286,
131
777
,930
10
3,08
6,12
3,85
3 1
,530
,717
36
4,23
9,71
0,60
12,
102,
896
73,8
43 1
2 56
3,69
9,38
327
9,59
4
Om
ani R
ial
221
,704
,704
1,7
04,8
17
00
00
16,0
41,5
841,
350,
444
122,
371
2
5,66
3,12
047
6,74
4
5,1
37,0
99
15,6
25,7
8416
,983
,998
287
,186
4,
066,
084
Euro
4 9
51,0
60
32,
274
115
,659
,728
545
,757
0
11,2
58,6
2739
2,37
487
1 5
5,
352,
161
186,
528
Kor
ean
Won
2 6
03,6
54,6
00
15,
550
49,
084,
904,
558
260
,736
2
9,08
9,04
6,62
426
0,85
51,
774
4
599,
512,
534
17,2
06
Term
Chi
nese
Yua
n3
2,2
79,4
00
10,
610
414
,653
,904
68,
902
312
,236
,370
57,5
3510
7 4
4,
696,
934
22,0
84
Indi
an R
upee
3 7
,408
,625
3
,356
2
54,1
48,2
35 2
6,85
7 3
46,3
57,0
8622
,993
318
2
15,1
99,7
747,
539
Japa
nese
Yen
0 0
02
13,7
89,5
25 3
,967
0
8,19
3,87
52,
357
0 2
5,
595,
650
1,60
9
61,
790
906,
219
736,
114
3,07
023
4,96
6
5,1
98,8
8916
,532
,003
17,7
20,1
1229
0,25
64,
301,
050
142 143Financial Report
Balance at the beginning of the year Opened during the year Credited (cancelled)
during the year Balance at the year end
Number Rls (M) Number Rls (M) Number Rls (M) Number Rls (M)
Demand/call 3 7,157 0 0 2 4,987 1 2,170
Term 3 14,556 7 58,326 3 55,083 7 17,799
21,713 58,326 60,070 19,969
54-1-2- The obligations pledged by the parent company under Rial-denominated letters of credit are as follows:
54-2-1- The statement of obligations pledged by the parent company under the letters of guarantee in foreign currency breaks down as follows:
54-2-2- The obligations pledged by the bank under rial-denominated letters of guarantee are as follows:
54-2- The obligations under letters of guarantee issued in rial and foreign currency
Group Parent company
Note 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Issued LGs - in Forex 54-2-1 690,708 369,760 690,708 369,760
Issued LGs - in Rial 54-2-2 4,366,151 6,568,558 4,439,236 6,709,528
5,056,859 6,938,318 5,129,944 7,079,288
March 20, 2017 March 19, 2016
Amount in forex Amount in rial Amount in forex Amount in rial
Rls (M) Rls (M)
US Dollar 0 0 408,476 12,353
UK Pound 138,334 5,560 138,334 5,961
Canadian Dollar 2,370,000 57,504 2,370,000 54,712
Chinese Yuan 15,642,623 73,551 15,642,623 72,816
Euro 15,898,917 554,093 5,052,303 171,449
Indian Rupee 0 0 115,827,360 52,469
UAE Dirham 0 0 0 0
Canadian Dollar 0 0 0 0
Turkish Lira 0 0 0 0
Japanese YEN 0 0 0 0
S. Korean Won 0 0 0 0
690,708 369,760
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Obligations for LGs and acceptances issued 4,439,236 6,709,528
4,439,236 6,709,528
54-3- Other obligations pledged by the parent company break down as follows:
54-4- The managed funds and similar funds consist of the following:
54-5- The obligations created under letters of credit and letters of guarantee by a
breakdown of collateral type
Parent company
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Obligations for participation bonds and other securities guaranteed 0 0
Obligations for credit cards 1,604,420 1,527,280
Obligations for contracts in forex - foreign exchange reserve account 0 0
Obligations for syndicated contracts 0 0
Obligations for commodity loans guaranteed 0 0
Obligations for contracts in rial 13,158,985 2,454,071
Obligations for contracts with the Management and Planning Organization 0 0
Obligations for amounts received from National Development Fund in rial 0 0
Obligations for amounts received from National Development Fund in forex 0 0
Obligations for transactions in non-governmental sector 2,575,191 3,010,752
Obligations by borrowers/users for credit services 4,974 5,004
Obligations for drafts 2,958,258 166,388
20,301,828 7,163,495
Parent company
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Deposits 2,009,070 2,044,558
Participation bonds and other debt securities guaranteed by government and CBI 4,443 2,222
Participation bonds and other debt securities guaranteed by other banks 0 0
Banking LGs 646,555 248,821
Letters of credit transacted 0 0
Shares listed on the stock exchange 84,264 114,300
Land and buildings 859,537 990,497
Machinery 1,249 0
Checks and promissary notes 5,713,694 8,822,377
Other 80,036 77,123
9,398,848 12,299,898
Unpledged obligations 52,115 0
9,450,963 12,299,898
Parent company
March 20, 2017 March 19, 2016
Rls (M) Rls (M)
Loans granted out of managed funds 1,100,631 1,087,018
Unused managed funds 65,230 76,640
Loans granted out of special interest-free deposits 179 179
Unused special interest-free deposits 2,037 2,037
1,168,077 1,165,874
144 145Financial Report
55-1- There were no material capital obligations as at the balance sheet date.
55-2- There were no material contingent liabilities as at the balance sheet date.
From the balance sheet date until the approval date of financial statement, there has been no material event which might have affected financial statements and required disclosures.
Saman Bank has no record of bad/written-off debts as at March 2017 ,20.
Saman Bank has devised and established a specialized and appropriate structure which is consistent with the accepted framework of risk management risk. This structure will enable the bank to manage the significant risks in banking industry within the context of a business model devised for banking activities and operations. The information provided in this section is rooted in the bank’s operations and reflects the effect of risks on the balance sheet and the statement of the profit and loss. The key risks which are chiefly addressed by the Saman Bank management in compliance with the risk management guidelines recommended by the Basel Committee (Basel II) are listed below:
• Credit risk
• Liquidity risk
• Market risk
• Operational risk
The foregoing risks emerge from the bank’s business model and the risk management mechanism. In the current model, attempt has been made to identify the events which may affect the level of the bank’s achieving its paramount goals within the framework of risk management. More notably in parallel with the risks evaluation, the bank’s risk management will take the anticipated loss index as well as the quantitative and qualitative models into account and will continuously develop and enhance its evaluation models and patterns.
56-1- Basic earnings per shae
The basic EPS is earned by dividing the dividends belonging to ordinary shareholders by the average weighted number of ordinary shares outstanding with the shareholders. The average weighted number of ordinary shares (basic) in the parent company consists of 8,000,000,000 shares.
56-2- Diluted earnings per share
The diluted earnings per share is earned by dividing the dividends belonging to ordinary shareholders by the average weighted number of ordinary shares outstanding with the shareholders upon adjustment of dilution impact of all potential ordinary shares. The average weighted number of ordinary shares (diluted) in the parent company consists of 8,000,000,000 shares.
55- Capital obligations and contingent liabilities
56- Earnings per share (EPS)
57- Post-balance sheet events
58- Bad (written-off) debts
59- A profile of the bank’s risks
59-1- Relationship between various business units and the key risks each unit is exposed to:
59-2- Framework and chart of risk management
Saman Bank has a strong determination to counter the business risks and environmental uncertainties. The key business segments impacted by financial risks include the retail banking division which is substantially affected by credit and liquidity risks and the corporate banking division which is influenced by various credit, liquidity and market risks. The operational risks may accordingly affect some areas of current activities of the units which will be surveyed and evaluated, by applying the common practices.
The risk management is responsible for developing and controlling the bank’s risk management policies. Thus in line with the policy of effective risk management, Saman Bank has devised and created a Risk Management System comprising the High or Senior Risk Committee and the Risk Department which have been shown in the diagram below. The Risk Department report to the Bank Deputy for Supervision and shall have to implement the decisions taken by the High Risk Committee.
Private
banking
International
banking
Corporate
banking
Retail
banking
SamanBank
Credit risk Low LowLow
Average
Average
Average
Average
Low LowLow
Low LowLow
Low LowLow
Credit risk Credit risk Credit risk
Market risk Market risk Market risk Market risk
Liquidity risk Liquidity risk Liquidity risk Liquidity risk
Operational risk Operational risk Operational risk Operational risk
Board of Directors
High Risk Committee
CEO
Risk Department
• At Saman Bank the responsibility for all accepted risk shall remain with the Board of Directors.
• The Bank’s High Risk Committee shall regularly monitor and measure the existence, accuracy and adequacy of the management policies and processes, control and encounter with various risks affecting the bank’s operations. Additionally, the High Risk Committee shall also have to ensure the compliance of the bank’s procedures for internal controls with the framework recommended by the Central Bank of Iran, to monitor implementation of the risk policies adopted by the Committee and the board of directors by concentrating on the consolidation and enhancement of bank reputation and position and to maintain a proper capital adequacy ratio as required. The outcome of the Committee’s actions shall be submitted to the bank’s board of directors under the title of “Guiding and Supervisory Reports”.
• The High Risk Committee, regarded as a key body which substantially affects the various risk management areas pursues the following goals:
- To measure the size of risk appetite and desired capital adequacy ratio every six months, monitor the process of this ratio and prepare it for approval by the board of directors along with the capital adequacy ratio (as a
146 147Financial Report
determinant to measure the level of risk appetite) up to the desired level.
- To approve the annual report on the performance appraisal of the bank’s risk management system and prepare it for submission to the board of directors to be incorporated in the annual report addressing the shareholders’ general meeting.
- To approve the annual risk management plans concerning the development, improvement and implementation of the risk measurement, assessment and management systems in the bank which may include procurement of required hardware and software facilities and recruitment of human resources.
- To review reports and conduct periodic assessment on the calculation and measurement of the bank’s overall risks and identify the improved areas (with emphasise on the compliance with the approved policies for the risk control management, cases of non-compliance, departments and persons involved, feedback policies in respect of non-compliance and effectiveness of such policies) and provide information to the board of directors on the outcomes of the evaluation and measures taken in these areas.
• The Risk Department has been created to act as an executive arm of the High Risk Committee with the aim of fulfilling the requirements set forth by the Central Bank of Iran and preparing the grounds for execution of the guidelines recommended by the Basel International Committee. This department will identify the principal financial risks as accepted by the Basel Committee including credit, liquidity, market and operational risks and will report them to the High Risk Committee, the CEO, and other appropriate committees. The Risk Department reports to the Bank Deputy for Supervision as specified in the organization chart. More importantly, this Department performs its functions in compliance with the directives and instructions of the High Risk Committee towards accomplishment of its goals.
59-3 Credit risk
59-3-1- Definition of the credit risk
Credit risk is the likelihood of suffering loss arising from the counterparty’s failure to meet his contractual obligations with respect to the principal amounts and interests. That is the reason why the main component in banking operations will meaningfully be premised on the correct performance, design and implementation of written procedures and policies for identifying, assessing, monitoring and controlling the credit risk. The credit policies will provide a framework for financings and granting credit facilities by the bank. Obviously, the bank credit policies shall include the matters such as target markets, portfolio composition, pricing requirements, terms of reference, loan approving or sanctioning authorities, reporting procedures, the process relating to list of exclusions and … Such measures shall be clearly defined in line with the banks’ contingent procedures and shall be appropriate to the scale and complexities of banking operations.
More significantly, the credit policies shall be devised and implemented with a view to the internal and external factors such as the bank market position, business locations/areas, staff capabilities and technological advances.
Arguably, these policies shall particularly define the banks’ objectives in the areas of portfolio composition, exposure limits of the counterparty or a group of related parties, special industries or economic sectors, geographical locations and special products. In general, banks shall ensure that their internal exposure limits are consistent with any type of contingent limitations or scopes which have been determined by the banking inspectors (regulators).
59-3-2- Credit policies and procedures
Saman Bank credit policies covering loans, facilities and outstanding debts or claims due to this bank are described as follows:
A- Loans: to abide by the authorized sanctioning limits and amend the loans portfolio based on tenor and return.
B- Claims: To reduce the debt balance and review the records of large debts
Accordingly, the most significant plans and credit requirements of the bank are as follows:
• To set the quantitative goals of the policy on loan facilities, debt collection, letters of guarantee and letters of credit;
• To define the scope of powers or sanctioning authority of credit departments in granting loans and collecting debts;
• To install and implement the monitoring systems for granting loans;
• To measure the customers’ repayment capacity for receipt of loans;
• To establish a supervisory and controlling system over the quality of informational reports;
• To mitigate the risk of loans and commitments by receiving secure collaterals;
• To comply strictly with the regulations governing the single borrower/beneficiary, related parties as well as
2. It means the total net loans granted and the liabilities so created to or for each single beneficiary which will add up to at least %10 of the bank base capital
3. Single borrower or beneficiary means a natural person or a legal person independently or two or more natural persons who may on the grounds of enjoying ownership, managerial, financial or controlling relationships or otherwise place the bank exposed to risks (in a vulnerable position), in such a way that the problems pertaining to one of them can affect the other/others and this domino effect may result in the failure of repayment or default on the loan obligations.
the large loans and debts;
• To regularly hold the meetings by Restructuring and Debt Collection Committees at various levels so as to take decisions on the customers’ outstanding debts as quickly as possible;
• To pay special attention to the reasons for growing overdue and outstanding debts, paid letters of credit, paid letters of guarantee by preparing a statement, filing a report and making necessary recommendations;
• To conduct periodic inspections by the inspectors named in relevant directives and pay random visits to the loan business locations for monitoring their progress, and functionality by supervisors, credit committee members and other competent authorities.
59-3-3- Executive units of credit risk management
The implementation areas will include across-the-board sectors (all departments and divisions) of the bank in particular, branches, credit affairs division, debt collection office, credit committees and other credit units.
59-3-4- Scope of powers at various organizational levels for sanctioning loans and liabilities
An important element of credit risk management is to specify the level of exposure for individual counterparties or a group of related counterparties. Considering the segregation of “Retail and SMEs Banking” and “Corporate Banking”, in Saman Bank, the prevalent criteria and standards for decision making on loans and liabilities will include the three areas of: “Large Loans and Obligations ”, “Related Parties, Loans and
Obligations”, and “Retail and SMEs Loans and Obligations”.
Large loans and liabilities:Loans and obligations in the area of corporate banking shall be based on customer due diligence (CDD) of a single borrower or beneficiary . The following persons will fall under the category of single beneficiary:
• Natural or legal person independently
• The ownership relationships between the natural and legal persons which include the following:
- A natural person as well as his/her spouse and dependents with affiliates and their associates
- A legal person/entity with affiliates and their associates
- Affiliates and associates of a natural person or a legal entity having interrelationships provided that multiplication of their ownership percentages in such units will be at least 20%
• The managerial relationships between the legal entities which include the following:
- A legal entity with other legal entity having at least two thirds of joint board members
- A legal entity with other legal entity having joint chairmanship of board of directors
• The financial relationships between a legal entity and a natural person which include the following:
- A natural person with his/her spouse and dependents
- The obligor with obligee provided that the amount of guarantee comes up to at least 75% of the obligor’s annual income or assets. The inverse relationship in this proportion may apply when these two parties have mutually agreed on counter guarantees
- Partly (A) with party (B) provided that over 50% of the gross annual income of party (A) is funded by party (B). The inverse relationship of this proportion does not apply
- The persons who each holds at least 20% of shares or capital with a voting right in a legal entity
- The persons who earn over 50% of their gross annual income from the same income source
• The controlling relationships between a natural person and a legal entity include the following:
- A natural person as well as his/her spouse and dependents with a legal entity who has in any manner arranged the voting right of over 20% of such legal entities’ votes
- A large entity with other legal entity who has in any manner arranged the voting right of over 20% of the
2
3
148 149Financial Report
4. Related parties are natural and legal persons who have the power to directly and/or indirectly control the decisions taken in the bank or have significantly influenced in one way or another such as personal, ownership, managerial or supervisory relationships in a way that they may prefera-bly use the bank as their financial resources and thus the bank’s interests are overshadowed by the interests of the said persons.
4
corporate customer up to the limit of Rls. 800 billion and the bank board of directors shall approve the amounts of loans in excess of Rls. 800 billion.
Retail and SMEs loans and liabilitie5:The loans and obligations in the area of retail and SMEs banking shall be based on the type of customer and the amount of requested loans. Thus, the prevailing criteria for identifying the retail and SMEs customer include the following:
• Natural persons: all natural persons over the age of 18 applying for any amount of loans and obligations.
• Legal entities: that group of legal entities that along with the relevant single beneficiaries make a request for loans and liabilities for the maximum amount of Rls 100 billion and/or its rial equivalent in foreign currencies.
All branches are required to accept and consider the credit applications within the above mentioned limits and, where the amounts of such applications are in excess of the stipulated limits, they have to send them to the Corporate Banking Department in coordination with the Retail and SMEs Banking Department. Regardless of the loan amounts being requested or used, any credit services to the following customers shall be provided solely by the Corporate Banking Department:
• Manufacturing companies with a capital in excess of Rls. 100 billion
• Trading and service companies with a capital in excess of Rls. 120 billion
• State-run corporations and non-governmental public organizations
• Related parties and bank’s subsidiaries and affiliates
• Subsidiaries and affiliates to other banks
• Public joint-stock companies listed on the Stock Exchange
Sanctioning bodies in Retail and SME Banking Department:In managing the retail and SME banking affairs, the branches of Saman Bank vary in terms of credit sanctioning authority, and are categorized into five classes:
Top Group Branches, Group I Branches, Group II Branches, Group III Branches and Group IV Branches. The scope of credit sanctioning powers of each group for acceptance and approval of the types, components and amounts of collaterals shall be subject to the requirements set forth in a Saman Bank directive governing “The Requirements for Granting Retail and SME Loans” and subsequent amendments and annexes thereof.
For the purpose of approving credit loans and letters of guarantee and in compliance with the scope of credit sanctioning authority defined for branches, all the bank branches shall have to review and decide on all the customers’ credit applications being consistent with the scope of delegated powers (by computing the customer’s current debts and liabilities) at the commissions which are held at the various levels of bank organization. The commissions which are authorized to make decisions on granting loans in rials and foreign currencies, issuing letters of guarantee, opening letters of credit and entering orders for documentary drafts guaranteed by the bank include the following:
• Branches Credit Commission
• District Credit Commission (District head office)
• Internal SME Credit Commission
• SME High Credit Commission
5
5. SME or Business loans: means facilities granted to the intended trade union or guild for the purpose of providing working capital to run and expand the existing businesses or create new business ventures.Retail loans: means the facilities granted to meet the consumer needs of customers such as home repairs and purchase of housing and consumer goods.
other legal entity’s votes
- A natural person or a legal entity with other legal entity who has the power to direct and control the financial and operational policies including the decisions on the distribution of dividend or profit
- A natural person or legal entity with other legal entity who has the power to appoint or dismiss the majority of board members of the entity in any manner arranged.
When single borrowers/beneficiaries are identified, the corporate banking offices shall enter the information about the loan borrower in the bank’s statistics and database management system in the unit of the single beneficiary.
The loans to or obligations by any single borrower which may cause such loans and obligations to fall under the category of “Large Loans and Liabilities” shall have to receive the approval of the bank board of directors. Therefore, if the customer meets the requirements for receipt of loans and obligations within the stipulated limits, he shall finally have to obtain the authorization from the board of directors.
Limits of large loans and liabilities:• The maximum total large loans to and obligations by ay single borrower shall not exceed 20% of the bank
capital.
• The maximum total large loans and obligations will be eight times (eightfold) of the bank capital.
• When the loan amount requested by a single borrower is more than the specified limit in the applicable regulations, the bank may under the prevalent rules, apply the procedures for granting joint-loans (such as syndicated, consortium or similar methods).
Loans to and liabilities by related parties:Loans to and obligations by related parties will be based on the KYC of related parties. The following persons will fall under the category of related parties:
• Directors of the credit institutions including board members, managing director (CEO), deputy managing director and other executive board members;
• Independent auditor (whether the auditing firm and copartner) and legal inspector of credit institution;
• A natural person and his family members including the father, the mother, the spouse and the children who jointly or severally own at least 5% of shares in the credit institution;
• The father, mother (parents), spouse and children of the related parties stated in items 1 and 2 above;
• A legal entity whose capital or shares are owned by the related parties stated in items 1,2, 3 and 4 above in a manner that the said related parties have the authority to appoint at least one member of the board of directors in this legal entity;
• A legal entity in which the related parties stated in items 1, 2, 3 and 4 above hold management positions (board member, executive board, managing director (CEO) and deputy managing director);
• A legal entity that directly holds at least 5% of shares in the credit institution;
• A legal entity in which at least 10% of its capital or shares is directly owned by the credit institution;
• A legal entity in which at least 20% of its capital or shares is directly owned by the legal entities stated in item 8 above.
Limits of loans to and liabilities by related parties:• Individual limit: the total net loans to and obligations by each person shall not exceed 3% of the bank capital.
• Group limit: the total net loans to and obligations by each related party shall not exceed 40% of the bank’s base capital.
The bank board of directors shall approve the loans to and obligations by related parties prior to the grant of any loans or creation of any obligations. The board meetings for decision making on the grant of loans to or creation of obligations by the related parties shall be held without the presence of the related parties involved in this process.
Corporate loans and liabilities:The Corporate Banking Commission shall have the authority to sanction the loans and credit lines for each
4
150 151Financial Report
Sanctioning authority of credit commissions (in million)
Authority for the 2nd gradecollaterals
Authority for the 3rd gradecollaterals
Type of Commission Type of loans and LCs in rial Natural persons Legal persons Natural persons Legal persons
Class IV Branch Credit Commission
Loans in rial 2,000 3,000 600 1,000
LGs and Internal LGs in rial 2,000 3,000 600 1,000
Class III Branch Credit Commission
Loans in rial 3,000 4,000 800 1,500
LGs and Internal LGs in rial 3,000 4,000 800 1,500
Class II Branch Credit Commission
Loans in rial 4,500 6,000 1,500 2,000
LGs and Internal LGs in rial 4,500 6,000 1,500 2,000
Class I Branch Credit Commission
Loans in rial 6,000 9,000 2,000 3,000
LGs and Internal LGs in rial 6,000 9,000 2,000 3,000
Top Branch Credit Commission
Loans in rial 8,000 12,000 3,000 5,000
LGs and Internal LGs in rial 8,000 12,000 3,000 5,000
District Credit Commission
Loans in rials Twenty five (25%) beyond the authoritydelegated to branchesfor any type of loans and obliga-
tions as described above
Twenty five (25%) beyond the authoritydelegated to branches for any type of loans and obligations as
described aboveLGs and Internal LGs in rial
Sanctioning authority of foreign exchange branches and District Credit Commissions (in million)
Authority for the 1st and 2ndgrade collaterals
Authority for the 3rd gradecollaterals
Branches group Type of forex obligations Natural persons Legal persons Natural persons Legal persons
Forex branch Sight LCs 5,000 10,000 2,000 5,000
Class II
Forex LGs and term LCs andrefinance
4,000 6,000 1,500 2,000
To be decided by the branch 5,000 15,000 25% of LCs and/or 35% forex drafts
to guarantee fulfillment of forexobligations
Forex branch Sight LCs 7,500 12,000 3,000 7,000
Class I
Forex LGs, term LCs and refinance 6,000 9,000 2,000 3,000
25% of LCs and/or 35% forex drafts to guarantee fulfillment of forex
obligationsTo be decided by the branch 7,000 20,000
Sight LCs 10,000 15,000 4,500 10,000
Top Forex Branch
Forex LGs, term LCs and refinance 8,000 12,000 3,000 5,000
25% of LCs and/or 35% forex drafts to guarantee fulfillment of forex
obligations To be decided by the branch 10,000 25,000
District Credit Commission Twenty five (25%) beyond the authority delegated to branches for any type of loans and obligations as described above
• The scope of sanctioning authority in rials delegated to credit commissions of branches and district head offices:
• The scope of sanctioning authority in foreign currencies delegated to credit commissions of branches and district head offices:
Sanctioning authority for higher level credit committees beyond branches and district head offices (in million)
Authority for the 1st and 2nd classcollaterals
Authority for the 3rd grade collaterals
Type of Commission Natural persons Legal persons Natural persons Legal persons
Internal credit committees 30,000 50,000 15,000 25,000
Retail and SME credit committees 100, 000
• Scope of sanctioning authority delegated to SMEs credit commissions
59-3-5- Methods of reducing credit risk
One way of mitigating the credit risk is the collateral coverage with a view to the risk exposure and debt liquidity ratio. Considering the risk exposure, collaterals may be divided into three grades:
First grade collaterals and guarantees:
• First grade collateral of type I: includes the cash collateral in the short-term investment deposit in rial at the interim zero interest rate and without banking card (short-term investment deposit in rial coded 836 for natural persons and 837 for legal persons).
• First grade collateral of type II: includes the cash collateral in the ordinary short-term investment deposits in rial.
• First grade collateral of type III: includes short-term investment deposits and special short-term deposits in foreign currency, long-term investment deposits in rial (excluding Atieh Savings deposits), short-term investment deposits in rial and foreign currency at an interest rate higher than the ordinary rate, special short term investment deposits in rial and foreign currency, long-term registered and bearer certificates of investment deposits issued by Saman Bank, investment certificates of fixed income funds for which Saman Bank is acting as the registrar or guarantor of the fund’s units.
• First grade collateral of type IV: includes participation bonds issued by the CBI as well as the participation bonds issued by the state (governmental bonds).
Second grade collaterals and guarantees
include immovable properties and shares of companies listed on the stock exchange (excluding the shares of companies which are traded on the agreed basic market). The immovable properties which are introduced for loan security shall be real-estates or residential apartments or office buildings with six shares or parts of absolute ownership, valuable, easily marketable, uncontested and located in the municipal areas or bounds with a valid certificate of construction work completion. The mortgage of apartments used for business and residential purposes with a maximum age of 25 years as well as the real estates (villas) used for business and residential purposes without the age limit shall meet no impediment. Additionally, the valuation of collaterals should be conducted in compliance with the provision set forth in the last review under the directive No. 92-310-1599 covering the valuation of immovable properties.
Third grade collaterals and guarantees
the third guarantees means the guaranteed promissory notes received from customers. It should be noted that the branches when accepting the promissory notes from customers shall fully and absolutely abide by the provision of last review under the directive No. 92-310-2232 covering the requirements for completion, signature and receipt of guaranteed promissory notes.
59-3-6 Customer’s credit scoring process
The credit scoring or rating process shall include certain proper criteria used to evaluate, measure and obtain accurate information on the bank target market, borrower’s credit quality, counterparty’s credit goals, its structure and funding sources for repayment. The sequence and priority in this process are described below:
• Credit nature and goal: The applicant’s business objective shall be acceptable to the bank which means that it should be legal, non-speculative and consistent with the borrower’s track records. Additionally the bank shall ensure that the credit facilities are used to finance the applicant’s normal business operations. The loan size shall also be adequate for the customer’s goal and shall sound reasonable relative to his available funds. More arguably, with the growth rate of laundering activities in the modern business world, it is highly essential to fully understand and determine the clarity of the purpose of the requested credit facilities.
• Types of credit facilities: Such facilities may include: current account overdraft, hire purchase loan consumer lending loan, working capital loan, long-term loan, leasing loan, credit cards, real estate loan,
152 153Financial Report
business loan, mortgage backed loan, building construction loan, retail loan, factoring, ….
• Eligibility for borrowing: The lender shall consider the customer’s legal capacity. Arguably, the minor, the poor and the mentally retarded persons do not have the capacity to enter into transactional agreements or contracts. Under such circumstances, they need the appointment of a guardian for their affairs.
• Guarantees: Whenever a collateral security is needed, certain factors such as adequacy, capability, credibility and authenticity of the collateral should be taken into account.
• Review of the borrower’s financial position: When a customer’s financial status is analyzed, it will be highly important to review how his business operations have the capacity to generate sufficient cash flows for fulfillment of his obligations. From among the various factors which may be used to measure a customer’s financial standing, these items are worth mentioning: repayment capacity, liquidity, repayment willingness.
• Repayment capacity forecast: The lender should obtain a reasonable assurance of the borrower’s ability to service his obligations on the due date in future.
• Profitability: The expense of financing for the customer, the remuneration paid to employees with respect to credit assessment, credit grant and credit monitoring, rental costs and other general expenses shall be covered (normally received as prepayment) by the return created on the loans granted. In reality, a comfortable profitability shall be measured by the capital expenses.
• Continous monitoring: credit facilities should be constantly monitored through various methods and channels: risk exposure limit, capital allocation and periodic reports by the type of customer, borrowing position, segment and... .
Essential requirements for opening a credit file
Since the process of granting loans in Saman Bank starts with submission of the customer’s application by filing credit records, it is essential to meet the following requirements in this initial process:
• Customer’s CDD;
• Access to customers’ credit records shall be subject to the confidentiality rules and policies which prevail in the bank;
• The bank shall have to ensure that the loans are used for the objective declared by the customer
• The bank shall ensure that all appropriate forms and legal documents have been signed by the applicant prior to the loan allocation;
• The bank shall treat credit applications on a fair and non-discriminatory basis;
• The bank credit facilities shall be granted to various industrial sectors with a view to the non-concentration principle;
• The bank shall maintain an appropriate collateral margin for various credit facilities;
• Any type of regulation, by-law and directive shall be drafted and adopted in compliance with the applicable laws and rules of the Central Bank of Iran;
• The credit files shall contain the following items:
- Proof of identification and verification for the customer and guarantors;
- A signed copy of credit application
- The expert opinion including:
- The objective of loan facilities
- Collaterals and guarantees
- Customers’ obligations
- General background information
- Approval of relevant department or management
- Customer’s record/reputation with the bank
- Analysis of financial status
- Analysis of competitive position
- Cash flows forecast
- Documentation relevant to collaterals and guarantees
- Credit transaction structure/arrangement
- Audited financial statements
- Business licenses legally issued
Loans granted to banks Loans granted to customers Obligations under LGs and LCs
2017 2016 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Current 0 0 108,426,153 105,489,381 9,450,963 12,299,898
Overdue 0 0 1,752,674 1,507,318 0 0
Outstanding 0 0 2,928,083 3,045,616 0 0
Doubtful 0 0 20,855,807 22,858,188 0 0
Total gross amount 0 0 133,962,717 132,900,503 9,450,963 12,299,898
Value inpairment reserve 0 0 (6,212,516) (5,912,516) 0 0
Net book value 0 0 127,750,201 126,987,987 9,450,963 12,299,898
Overall credit scoring/rating process
• The primary responsibility for receiving customers, allocating credit loans, preparing credit reports, assessing customer’s scores, making enquiries from the existing sites/databases and keeping the relevant data and information shall remain with the branches.
In addition to the said reports and records, all branches shall, for payment of business loans up to the limit of ten billion rials (like loans for enhancement of working capital, business expansion and/or business creation) act for a site visit of the customer’s business location, receipt of financial statements and preparation of a report on his financial position and then in the final analysis, prepare an expert report containing an express opinion on the customer’s credit file which will serve as a basis on which decisions are to be made as appropriate.
• The responsibility for receiving the proposals made by branches, evaluating the customer’s scores/rates, managing the credit limits assigned for branches and expressing opinion on the suggested credit shall rest with credit commissions.
• The responsibility for sanctioning credits in the decision-making departments in respect of the credit size shall remain with credit commissions.
• The responsibility for providing an independent opinion on the loans granted by designing and updating the scoring/rating system, controlling and monitoring the credit risk shall remain with the risk management department.
• The functions assigned to the risk management department are segregated from the functions of the business activity and customer relationship management in credit areas.
• The policies on decision-making, monitoring and reporting independently about the credit risk shall be valid under any circumstances.
59-3-7- Analysis of credit quality
The bank assets quality including loans, liabilities/obligations, investments, type, amount and adequacy of the collaterals received (ratio of loans balance to updated value of collaterals) LTV in terms of credit risk profile have been illustrated in tables 59.3.7.1 and 59.3.7.2.
59.3.7.1. Analyzing credit quality of loans granted, obligations and investments based on the
bank’s internal credit scoring/rating system
It should be noted that the customers’ scoring/rating system in Saman Bank is in the process of formation. Although the credit system has been designed, classification of the bank’s customers by the degree of risk exposure has not been performed yet.
59.3.7.2. Table for analyzing the credit quality of the loans granted, obligations and investments
based on the assets categories
154 155Financial Report
59.3.7.3. Credit quality of participation bonds, Islamic treasury bonds, Sukuk bonds, units of mutual funds
and similar items
59.3.7.4. Types and amounts of collaterals received from credit customers
Credit quality analysis 2017 2016
Rls (M) Rls (M)
Issued by the government and Central Bank
Project 0 0
Company 0 0
Islamic treasury bonds 0 458,903
0 458,903
Issued by governmental corporations
Project 0 0
Company 0 0
.. 0 0
0 0Issued by non-governmental corporations
Project 0 0
Company 0 0
.. 0 0
0 458,903
Types of main collaterals 2017 2016
Rls (M) Rls (M)
Loans granted to natural personsCash 26,138 38,518 Participation/Sukuk bonds 5,475 5,137 Marketable securities (shares) 116,178 231,005 Non-listed securities 0 0Deposits 4,541,438 3,805,934 Real estate properties 58,876,267 37,087,117 Plant and equipment 66,233 68,069 Letters of guarantee 31,118 36,064 Checks/Cheques 38,106,060 32,879,977 Promissary note 7,571,833 9,894,261 Binding/irrevocable contracts 8,891,570 5,863,352 Ordinary notes/documents 13,140 16,135 Guaranteed notes 136,633 7,181 Affidavits 1,812 2,862 Letters of commitment 83,000 81,735 Conveyence of rights deed 9,275 614 Power of attorney 4,519 4,985 Letter of intent for sale 175,975 177,095 Loans granted to legal persons 0 0Cash 35,363 75,230 Participation/Sukuk bonds 27,640 13,320 Marketable securities (shares) 10,346,763 8,627,878 Non-listed securities 0 0Deposits 6,878,314 4,365,583 Real estate properties 32,421,146 33,088,640 Plant and equipment 4,035,466 3,288,024 Letters of guarantee 83,323 482,166 Checks/Cheques 150,915,811 146,303,461 Promissary notes 13,435,795 14,875,675 Binding/irrevocable contracts 14,369,956 15,929,808 Ordinary notes/documents 0 6,000 Guaranteed notes 20,363 0Affidavits 0 0Letters of commitment 100,675 92,419 Conveyence of rights deed 400 400 Power of attorney 0 0Letter of intent for sale 1,418 1,418
351,329,097 317,350,063
• Based on the written report filed by the bank’s expert, the said amount is the mortgaged value of all collaterals in possession.
59.3.7.5. The balance of loans based on the ratio of loans balance (less provisions) to updated cash value of
collaterals
• In the calculation process, this amount is the updated mortgaged value of collaterals with respect to the liquidity factors specified in the directive for deposit-taking and assets classification. This table is to disclose the coverage of collaterals in possession for the balance of customers’ debts.
59-3-8- Credit risk concentration
The credit risk concentration in Saman Bank has been defined in a manner to reflect the type, nature and content of credit risk. More significantly, the credit risk concentration will include the two components of target market and maximum market share of credit portfolio. To this end, Saman Bank annually drafts an operational program in which the target market covering the on-and off balance sheet items will be determined each year. Thus the bank will define its credit risk concentration in the following areas:
• Corporate banking
• Retail and SME banking
Further it should be noted that the responsibility for defining and reviewing various economic sectors including goals and total amounts of credit portfolio shall remain with the High Committee for Strategy and Budget.
2017 2016
Rls (M) Rls (M)
Loans granted to banks
Less than 50% 0 0
51 to 70% 0 0
71 to 90% 0 0
91 to 100% 0 0
Over 100% 0 0
Loans granted to natural persons 0 0
Less than 50% 2,779,767 3,685,028
51 to 70% 2,810,853 1,756,616
71 to 90% 3,718,785 3,253,033
91 to 100% 1,588,237 1,027,406
Over 100% 31,165,264 33,616,611
Loans granted to legal persons
Less than 50% 3,599,886 2,688,324
51 to 70% 4,580,039 4,878,205
71 to 90% 3,015,186 3,148,234
91 to 100% 1,090,037 1,219,209
Over 100% 73,402,147 71,715,321
127,750,201 126,987,987
156 157Financial Report
59.3.8.1. Distribution table of loans and investments by economic sectors and their inland concentration
59.3.8.1.1. Distribution of loans, obligations and investments by type of industry:
Loans granted Investments Obligations for LGs & LCs
2017 2016 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Book value 133,962,714 132,900,503 2,777,793 3,238,567 9,450,963 12,299,898
Loans/liabilities by economic sector
Industry 29,116,161 23,080,239 445,018 627,396 3,042,161 3,959,202
Housing 22,010,644 19,709,257 0 0 0 0
Commerce 51,015,086 54,423,545 0 0 5,951,401 7,745,415
Services 25,663,915 27,449,132 1,959,217 1,768,438 447,999 583,045
Agriculture 1,065,814 754,831 0 0 0 0
Banks 0 0 244,523 298,800 0 0
Mining 640,748 890,622 0 0 9,402 12,236
Other 4,450,346 6,592,877 129,035 543,933 0 0
133,962,714 132,900,503 2,777,793 3,238,567 9,450,963 12,299,898
Size of loans/degree of obligations onshoreand offshore (inland & overseas)
Inland 133,962,714 132,900,503 2,777,793 3,238,567 9,450,963 12,299,898
Overseas 0 0 0 0 0 0
133,962,714 132,900,503 2,777,793 3,238,567 9,450,963 12,299,898
2017 2016
Rls (M) Rls (M)
Loan facilities Automobile and auto parts 4,239,314 3,935,181
Mining and metal industries 4,964,306 3,360,483
Petrochemical, chemical industries and oil products 6,798,623 5,389,236
Foodstuffs and pharmaceuticals 9,794,676 7,764,192
Energy 2,282,707 2,040,293
Contractual services 0 0
Telecommunication, computer and associated industries 0 0
Financial intermediary 0 0
Others 1,036,535 590,854
Investments
Automobile and auto parts 36,137 104,769
Mining and metal industries 156,370 58,944
Petrochemical, chemical industries and oil products 18,203 79,979
Foodstuffs and pharmaceuticals 5,366 1,654
Energy 7,227 64,720
Contractual services 22,244 43,223
Telecommunication, computer and associated industries 2,735 145
Financial intermediary 69,091 134,115
Others 127,645 139,847
Obligations
Automobile and auto parts 347,815 452,662
Mining and metal industries 211,996 275,901
Petrochemical, chemical industries and oil products 1,407,881 1,832,278
Foodstuffs and pharmaceuticals 772,262 1,005,056
Energy 0 0
Contractual services 0 0
Telecommunication, computer and associated industries 0 0
Financial intermediary 0 0
Others 302,206 393,305 32,603,339 27,666,837
59.3.8.2. Distribution table of loans by participation, constant (fixed) profit contracts and type of customer
• The interest-free loans are to be classified under participation (non-constant profit) contracts.
59-3-9- Procedures for managing non-current loans
The bank’s policy on the management of non-current claims is premised on preventive measures supported by collaterals and proper management with follow-up actions and debt collection procedure. Considering the requirement set forth in the Law on the Elimination of Barriers to Competitive Production and Enhancement to National Financial System passed on April 21, 2015 by the Islamic Parliament and in compliance with the CBI’s directive No. 94/69383 governing the procedures for calculation and distribution of shared profit, banks shall have to reform their assets structure and increase the share of income-generating assets through the sale and disposal of the foreclosed properties and assets and collection of debts. In order to improve its assets structure and achieve the targets set for collection of non-current debts, Saman Bank takes appropriate measures within the context of its own internally approved by-laws and procedures. To this end, where the follow-up actions towards collection of the bank’s claims in the pending files (including movable and immovable properties and/or rights and privileges which will be held or put under the bank’s ownership) fail to collect debts at branch levels and credit departments, measures will primarily be taken by retail banking and corporate banking departments and, at a later stage, legal actions will be taken by the bank’s legal deputy. In performance of operational and strategic actions and subject to the applicable laws and regulations, Saman Bank shall have to sell surplus and foreclosed assets and properties to collect its outstanding and doubtful debts. As has been contemplated in the organizational structure, the credit departments shall be tasked with reducing the amounts of overdue debts and the bank’s legal deputy shall be responsible for collection of outstanding and doubtful debts.Collection of overdue loans will be performed under the time-frame and scheduled worked out by the VP Credit Deputy and collection of overdue loan balance shall be the responsibility of the Retail and Corporate Banking Department which all shall be pursued in the form of an annual target program based on the approved follow-up standards. In pursuance of the objective set by the Board of Directors, the Retail and SMEs Credit Department shall collect the amount of Rls 2,100,000 million and the Corporate Credit Department shall collect the amount of Rls. 1,101,000 million out of the overdue loan balance in the an annually scheduled program. As a consequence, an aggregate amount in the range of Rls. 3,201,000 million should be collected out of the overdue loan balance through the said two credit departments.Further, the responsibility for collecting outstanding and doubtful debts and sale of foreclosed or seized collaterals and properties shall remain with the Bank Legal Deputy’s Office. A plan is already well under way to collect the amount of Rls. 1,500,000 million of outstanding debts and the amount of Rls. 10,000,000 million of doubtful debts as well as selling the foreclosed collaterals for the amount Rls. 8,000,000 million. In aggregate, an amount of Rls. 19,500,000 million of (non-current) past-due loans has been planned to be recovered by the bank Legal Deputy’s office.The procedures for collecting claims and debts by all credit departments and offices of deputies are governed by the applicable laws and regulations in the country adopted by the CBI as well as the bank’s internal by-laws and directives. As prescribed in the prevalent laws, requirements and the bank’s internal by-laws, the overall procedures for collecting debts from sale of foreclosed properties and collaterals will sequentially entail and include calculation of mortgage debt, submission of documents, request for issuance of enforcement writ, service of enforcement writ, inquiry about property registration status, official expert’s appraisal report, notification of official expert’s opinion, issuance of authorization prior to the notice of sale auction or bid, operating procedures for sale of foreclosed properties and liquidation of claims due to the bank. Where the mortgaged real estate is not sold at the sale auction, the bank shall have to take possession of six shares (the entire portion) or partnership in the foreclosed mortgage put up for sale pursuant to the bank’s applicable rules and on the strength of the permits or licenses issued for this purpose.
Loans granted during the year Loans balance at year-end
Amount Total percentage Amount Total percentage
Rls (M) Rls (M)
Cconstant (fixed) profit contractsNatural customers 3,456,510 1.3 12,190,090 10.5
Legal customers 17,426,379 6.4 9,930,564 8.5
Non-constant profit contracts (including participation contracts)
Natural customers 17,977,246 7 30,416,374 22
Legal customers 234,805,529 85.8 81,425,689 58.9
273,665,664 133,962,717
Debt collection plan for the year 2016-2017
Debt balance Collection forecast 2016-2017 Amounts collected in 2015-2016 Realized (Percentage)
30,808,453 13,000,000 6,891,969 53.02
158 159Financial Report
59.3.9.1. Distribution of non-current loans by economic sectors
59.3.9.2. Balances of foreclosed assets
Non-current loans balance Specific provision for doubtful debts Net loans and non-current claims
Economic Sector 2017 2016 2017 2016 2017 2016
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Commerce 9,270,032 10,061,510 1,914,804 1,817,511 7,355,228 2,706,282
Services 1,654,501 1,733,038 87,089 79,299 1,567,412 165,626
Industry 10,884,491 10,584,310 1,765,965 1,543,340 9,118,526 1,465,784
Agriculture 2,857,564 4,010,117 535,613 504,652 2,321,951 1,688,166
Other 203,851 214,853 10,017 7,250 193,834 21,019
Housing and construction 0 0 0 0 0 0
Mining 1,044 671 94 131 950 (279)
Banks 665,070 806,620 119,170 180,572 545,900 260,720
25,536,553 27,411,119 4,432,752 4,132,755 21,103,801 6,307,318
2017 2016
Rls (M) Rls (M)
Movable properties 0 0
Residential real properties 5,368,409 6,183,364
Business/Office properties 10,298,942 12,753,136
Plant and Equipment 4,426,484 4,238,905
Investments 0 0
Debt securities 0 0
Land 3,959,408 3,617,484
24,053,243 26,792,889
59-3-10 Capital sum required for credit risk coverage
The amount of capital required for credit risk coverage will come up to Rls. 13,548,638 million which has been calculated and presented in the table 59.3.10.1.
59.3.10.1 The table for calculating the capital required for credit risk coverage
In the table below, the capital to be used for credit risk coverage aims at achieving 8% for the capital adequacy ratio.
(Allocated capital = 8% x Risk level)
2017
Type of asset Assets and liabilities Risk factor Risk level Allocated capital
Rls (M) Percentage Rls (M) Rls (M)
Due from other banks and credit institutions 28,858,640 20 5,771,728 461,738
Non-governmental participation bonds 0 100 0 0
Investment in securities (shares) 2,648,759 100 2,648,759 211,901
Due from subsidiaries and affiliates 3,578,947 100 3,578,947 286,316
Other accounts receivable 5,945,744 50 5,945,744 475,660
Hire purchase and housing loans 25,062,478 100 12,531,239 1,002,499
Other loans granted and amounts due 89,061,354 100 89,061,354 7,124,908
Other assets 47,930,014 100 47,930,014 3,834,401
Guarantee for participation bonds issued by non-governmentalsector (risk factor 50%) 0 100 0 0
Obligations for LGs issued (conversion factor 20%) 5,129,945 100 1,025,989 82,079
Obligations for LGs issued (conversion factor 50%) 0 100 0 0
Obligations for LCs issued (conversion factor 20%) 4,321,019 100 864,204 69,136
Obligations for LCs issued (conversion factor 50%) 0 100 0 0
212,536,900 169,357,978 13,548,638
59-4- Liquidity risk
59-4-1- Definition of liquidity risk
The liquidity risk means the possibility of impairing or endangering the bank’s ability to provide funds for fulfillment of its obligations.
59-4-2- Liquidity risk policies and processes
The Saman Bank policy is typically to keep for each type of currency a cash buffer of at least 2% of the total deposits of the same currency which is being reviewed not to slide lower than this percentage. Further in this arrangement, a limit has been set for transactions with other banks and there is strict control not to violate such limit.
59-4-3- Executive units of liquidity risk management
Saman Bank has strong belief in active management of liquidity risk. To this end, this bank has developed a coherent system to manage the liquidity risk. In this system, the Board of Directors, the Senior/High Risk Committee, the Resources and Consumption (ALCO) Committee, the Treasury Department and the Risk Department will play the leading roles.
59-4-4- Credit risk measurement method
In order to measure the liquidity risk, Saman Bank uses the existing financial ratios in Basel III which include NSFR (Necessary Stable Funding Ratio) and LCR (Liquidity Coverage Ratio). Additionally, the liquidity gap which may exist between rial and foreign currencies shall be deployed for this purpose.
59-4-5- Mechanism for controlling and monitoring liquidity risk
The responsibility for controlling and monitoring the liquidity risk in Saman Bank shall remain with the Risk Department, Resources and Consumption Committee and Treasury Department. The Resources and Consumption Committee shall be responsible to the High Risk Committee and the Board of Directors and shall trace up the following matters:
• To review and control the financial ratios and indices and deviation from the budget with respect to the forecast of annual operating budget;• To take decisions on the amount and optimal pattern of usage or consumption including credit lines, foreign currencies, investments, cash or cash equivalent whether in rial, or in foreign currency and interbank operations with a view to the level of impact on the bank profitability based on annual operating budget;• To take decisions on the rates of funding and allocation of rial-denominated and foreign currency sources with respect to the needs, peers’ rates, international market rates and sanctioning authority of executive units to change such rates with a view to their effect on profitability based on the annual operating budget;• To take decisions on the solutions to liquidity coverage subject to the liquidity level approved by the High Strategy Committee and High Risk Committee;• To determine inter-departmental interest rates;• To review and approve a contingency plan so as to face liquidity crisis with a view to the level of impact on the bank’s profitability, and where the decision-making goes beyond the scope of the commission’s authority, the relevant report shall be submitted to the High Strategy Commission and the Board of Directors;• To control the maturity dates of assets and liabilities, bank profitability trend, bank structure of expenses, profit sharing and non-profit sharing ratios, rate of return on assets and shares, cost of money within the defined authority and its impact on the bank profitability based on the annual approved budget;• To review and decide on the amount of investment size in the capital and commodity markets;• To review and analyze the bank investment portfolio and, in the case of any deviation from the approved budget, provide appropriate solutions towards achieving the bank’s operational goals;• To control and monitor the rate of loan facilities and return on assets of various types (loans, investments, interbank operations and…) based on the size established in the bank’s annual budget;• To control and monitor the average cost rate of bank funding sources based on the amounts set in the annual budget;• To adopt proper policies to keep the profit margin of resources and uses appropriate to the rates or amounts set in the annual budget and submit proposals and proper solutions to the High Strategy Commission;• To determine and approve the amount of annual contingent liquidity appropriate to the annual budget
160 161Financial Report
59.4.5.1 Liquidity reserves
The table below shows the composition of bank liquidity reserves:
1-Cash and cash equivalent means cash amounts, participation bonds and similar items with an active cash-traded market.
2-Net cash assets means cash and cash equivalent, investment papers/certificates with an active cash-traded market less bank deposits, issued debt securities, other loans and liabilities which will mature (fall due) by next month.
3-Demand deposits include the deposits without any contractual maturity such as current accounts, savings accounts and current interest-free accounts and …
59.4.5.2 Table of liquidity ratios
2017 2016
Rls (M) Rls (M)
Balance with CBI 4,171,647 2,478,732
Cash and balance with other banks 24,654,784 44,772,819
Islamic treasury bonds 0 458,903
28,826,431 47,710,454
Beginningof the year Mid-year Max. during
the year Min. during
the year Year-end
Percentage Percentage Percentage Percentage Percentage
Cash and cash equivalent to total assets (1) 23 18 24 12 14
Cash and cash equivalent to total deposits 23 17 24 11 13
Net cash assets to total deposits (2) 21 15 22 9 10
Loan facilities to total deposits 51 52 54 50 51
Loan facilities to on-year term deposits and more 136 131 136 120 120
Demand deposits to total deposits (3) 55 54 56 50 51
and in compliance with the applicable laws and regulations and the recommendation made by the board of directors;• To ensure the control and maintenance of liquidity level in various circumstances;• To monitor interbank operations.
The Treasury Department shall be responsible for the launch and execution of interbank operations.
59.4.5.3. Analyzing the maturity of assets and liabilities
The table below shows the maturity of the bank financial assets and liabilities based on the dates which would possibly be claimed or settled.
2017
Book value Less than 1month
1 - 3months
3 months to1 year
1 - 5 years
More than 5years
Without specifiedmaturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Assets
Cash in hand 31,494,714 31,494,714 0 0 0 0 0
Due from banks and other creditinstitutions 9,676,029 9,676,029 0 0 0 0 0
Due from the government 0 0 0 0 0 0 0
Loans granted to and amounts duefrom governmental entities 0 0 0 0 0 0 0
Loans granted to and amounts due fromnon-governmental entities/persons 127,750,201 61,818,046 18,995,007 24,696,205 18,383,206 3,857,734 0
Investments in shares and othersecurities 2,777,793 397,382 0 0 0 0 2,380,411
Due from subsidiaries and affiliates 3,578,946 0 0 0 0 0 3,578,946
Other accounts receivable 5,945,744 5,945,744 0 0 0 0 0
Tangible fixed assets 3,613,037 0 0 0 0 0 3,613,037
Intangible assets 4,301,189 0 0 0 0 0 4,301,189
Statutory deposit 23,035,684 354,433 354,433 672,958 1,646,427 20,007,431 0
Other assets 45,861,562 22,006,592 1,833,333 8,250,000 13,053,243 0 718,394
258,034,899 131,692,940 21,182,773 33,619,163 33,082,876 23,865,165 14,591,977
Liabilities and deposits
Due to banks and other creditistitutions (5,475,289) (2,966,977) 0 (2,508,312) 0 0 0
Customers' deposits (17,098,373) (962,045) (962,046) (1,826,653) (4,468,977) (8,878,654) 0
Dividends payable (52,482) 0 0 0 0 0 (52,482)
Debt securities 0 0 0 0 0 0 0
Provision for income tax 0 0 0 0 0 0 0
Provisions and other liabilities (8,813,301) 0 0 0 0 0 (8,813,301)
Provisions for employees' terminationand pension benefits (537,311) 0 0 0 0 0 (537,311)
Investment depositors' equity (214,853,049) (4,407,490) (2,481,358) (4,711,294) (11,526,437) (191,726,470) 0
Total liabilities (246,829,805) (8,336,512) (3,443,404) (9,046,259) (15,995,414) (200,605,124) (9,403,094)
Total shareholders' equity (11,205,094) (11,205,094)
Total liabilities and shareholders'equity (258,034,899) (8,336,512) (3,443,404) (9,046,259) (15,995,414) (200,605,124) (20,608,188)
Gap 0 123,957,028 10 24,572,905 17,087,463 (176,739,959) (6,616,808)
Accumulated gap 0 123,957,029 141,696,400 166,269,304 183,356,767 6,616,808 0
Gap to base capital ratio (percentage) 0 974 139 193 134 (1,388) (52)
Accumulated gap to base capital ratio (percentage)
0 974 1113 1306 1440 52 0
Gap to effective base capital ratiov (Percentage)
0 1042 149 207 144 (1,486) (56)
Accumulated gap to effective base capital ratio (Percentage)
0 1042 1191 1398 1542 56 0
162 163Financial Report
2016
Book value Less than 1month
1 - 3months
3 months to1 year
1 - 5years
More than 5 years
Without specifiedmaturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Assets
Cash in hand 49,362,165 49,362,165 0 0 0 0 0
Due from banks and other creditinstitutions 12,833,651 12,833,651 0 0 0 0 0
Due from the government 0 0 0 0 0 0 0
Loans granted to and amounts duefrom governmental entities 0 0 0 0 0 0 0
Loans granted to and amounts due fromnon-governmental entities/persons 126,987,987 64,175,053 20,416,661 18,617,992 23,144,384 633,897 0
Investments in shares and othersecurities 3,238,567 804,012 0 458,902 0 0 1,975,653
Due from subsidiaries and affiliates 1,030,522 0 0 0 0 0 1,030,522
Other accounts receivable 5,651,666 5,651,666 0 0 0 0 0
Tangible fixed assets 3,593,857 0 0 0 0 0 3,593,857
Intangible assets 4,119,563 0 0 0 0 0 4,119,563
Statutory deposit 21,131,325 325,274 307,358 593,007 1,457,824 18,447,862 0
Other assets 29,606,051 3,818,932 533,479 7,201,967 17,957,796 0 93,877
257,555,354 136,970,753 21,257,498 26,871,868 42,560,004 19,081,759 10,813,472
Liabilities and deposits
Due to banks and other creditistitutions (27,042,210) (19,094,260) 0 (7,947,950) 0 0 0
Customers' deposits (21,885,077) (943,127) (764,308) (1,545,171) (3,850,437) (14,782,034) 0
Dividends payable (157,034) 0 0 0 0 0 (157,034)
Debt securities 0 0 0 0 0 0 0
Provision for income tax 0 0 0 0 0 0 0
Provisions and other liabilities (4,268,653) 0 0 0 0 0 (4,268,653)
Provisions for employees' terminationand pension benefits (414,634) 0 0 0 0 0 (414,634)
Investment depositors' equity (194,173,795) (4,455,020) (2,340,290) (4,443,615) (10,871,320) (172,063,550) 0
Total liabilities (247,941,403) (24,492,407) (3,104,598) (13,936,736) (14,721,757) (186,845,584) (4,840,321)
Total shareholders' equity (9,613,951) (9,613,951)
Total liabilities and shareholders'equity
(257,555,354) (24,492,407) (3,104,598) (13,936,736) (14,721,757) (186,845,584) (14,454,272)
Gap - 112,478,350 18,152,898 12,935,131 27,838,246 (167,763,823) (3,640,802)
Accumulated gap - 112,478,350 130,631,248 143,566,379 171,404,625 3,640,802 0
Accumulated gap to base capital ratio (percentage)
- 909.8 146.8 104.6 225.2 (1,357) (29.4)
Accumulated gap to base capital ratio (percentage)
- 909.8 1056.7 1161.3 1386.5 29.4 0
Gap to effective base capital ratiov (Percentage)
- 953.3 153.8 109.6 235.9 (1,421.8) (30.9)
Accumulated gap to effective base capital ratio (Percentage)
- 953.3 1107.1 1216.7 1452.7 30.9 0
59.4.5.4. Analyzing the contractual maturities of financial liabilities
59.4.5.4.1. The table below shows the maturity of financial liabilities based on the maturity specified in the contract.
59.4.5.4.2. The table below shows the maturity of forex-denominated financial liabilities based on the maturity specified in the contract.
2017
Book value Less than 1month
1 - 3months
3 months to1 year
1 - 5years
More than5 years
Without specifiedmaturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Liabilities
Due to banks and other credit istitutions (5,475,289) (272,390) (1,487,541) (818,989) 0 0 (2,896,369)
Customers' deposits (17,098,373) 0 0 0 0 0 (17,098,373)
Debt securities 0 0 0 0 0 0 0
Loans received from the National Development Fund 0 0 0 0 0 0 0
Investment depositors' equity (214,853,049) (12,472,308) (11,551,202) (65,754,453) (9,855,401) 0 (115,219,685)
(237,426,711) (12,744,698) (13,038,743) (66,573,442) (9,855,401) 0 (135,214,427)
2016
Book value Less than 1month
1 - 3months
3 months to1 year
1 - 5years
More than5 years
Without specifiedmaturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Liabilities
Due to banks and other credit istitutions (27,042,210) (19,094,260) 0 (7,947,950) 0 0 0
Customers' deposits (21,885,077) 0 0 0 0 0 (21,885,077)
Debt securities 0 0 0 0 0 0 0
Loans received from the National Development Fund 0 0 0 0 0 0 0
Investment depositors' equity (194,173,795) (5,948,065) (1,740,197) (5,636,200) (75,961,202) 0 (104,888,131)
(243,101,082) (25,042,325) (1,740,197) (13,584,150) (75,961,202) 0 (126,773,208)
2017
Book value Less than 1month 1 - 3 months 3 months to
1 year 1 - 5 years More than5 years
Withoutspecified maturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Liabilities
Due to banks and other credit istitutions (2,685,169) (272,391) (1,487,542) (818,989) 0 0 (106,247)
Customers' deposits (6,577,292) 0 0 0 0 0 (6,577,292)
Debt securities 0 0 0 0 0 0 0
Loans received from the National Development Fund 0 0 0 0 0 0 0
Investment depositors' equity (15,884,873) (8,201,897) (1,320,909) (4,691,557) 0 0 (1,670,510)
(25,147,334) (8,474,288) (2,808,451) (5,510,546) 0 0 (8,354,049)
2016
Book value Less than 1month 1 - 3 months 3 months to
1 year 1 - 5 years More than 5 years
Withoutspecified maturity
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Liabilities
Due to banks and other credit istitutions (22,799,693) (12,215,115) 0 (7,947,951) 0 0 (2,636,627)
Customers' deposits (9,936,776) 0 0 0 0 0 (9,936,776)
Debt securities 0 0 0 0 0 0 0
Loans received from the National Development Fund 0 0 0 0 0 0 0
Investment depositors' equity (13,757,148) (4,078,065) (1,635,068) (5,062,065) 0 0 (2,981,950)
(46,493,617) (16,293,180) (1,635,068) (13,010,016) 0 0 (15,555,353)
164 165Financial Report
59-4-6- Crisis contingency plan (liquidity stress test)
In order to test the liquidity crisis in Saman Bank, it is essential to identify the factors creating liquidity crisis and make scenarios based on the assumptions which result from the existing facts. To this end, the operational plan for the stress test project is executed with the aim of studying and identifying the factors creating liquidity crisis in the bank by using the previous studies, determining the major risk factors, shock and its impact on the assets and liabilities, designing the scenario in alignment with assets and liabilities, modeling the liquidity crisis test based on the internal influential factors, predicting the possibility for emergence of liquidity crisis and maintaining an appropriate level of liquidity in response to cash outflows and avoiding the source funding with substantial expenses. During the recent financial crisis, the liquidity risk has been the main focus of attention in that, it has revealed how a crisis can accelerate the process of liquidity shortage in the market among the banks and even hinder other large institutions from their operations. Previous to such financial crisis, there was no liquidity crisis test performed by any banks for the historical evidence did not indicate any sign of liquidity risk crisis on the grounds of liquidity events. As a general rule, in the banking industry, the inflow of sources should be consistent with the outflow of sources the failure of which may lead to three possible scenarios to bring about liquidity shortage for the bank as follows:
• Scenario 1: In this scenario it is assumed that the inflow and outflow of sources by depositors will take place in normal conditions. However, the collection of debts by or recovery of sources from the borrowers will happen less quickly. As such, the borrowers will have the sources at their disposal for a longer period of time.
• Scenario 2: In this scenario it is assumed that outflow of sources by depositors will happen more quickly. As such, the inflow of new sources and return of sources by lenders will not cover the outflow of sources.
• Scenario 3: In this scenario, it is assumed that outflow of sources by depositors will increase and simultaneously return of sources by borrowers will slide out of normal conditions.
One of the most applicable ratios for testing the liquidity crisis is the LCR (Liquidity Coverage Ratio). To define a hypothetical scenario regarding LCR, it will be imperative to exercise hypothetical shocks to the inflow and outflow of assets and measure their impact on this ratio and crisis borderline.
Under normal circumstances and considering the background, the liquidity ratios including LCR have never reached the crisis borderline. Therefore, our scenario will be built on a hypothetical situation and not on historical data. There are various assumptions which may influence the occurrence of crisis including the external factors, such as changes in inflation rate, foreign currency translation, housing price indexes, blocking Shetab payment system by the CBI and... .
The impact of each externally exogenous variable on the balance sheet ratios and increase in the claims ratio as well as decrease in the amounts of facilities and deposits will change the LCR (Liquidity Coverage Ratio) and may ultimately approach the crisis borderline.
59-5- Market risk
59-5-1- Definition of market risk
The market risk or the market value at risk (VaR) may be defined as the risk probability of uncertainty in trading portfolio revenues of a financial institution as a result of changes in market situation such as asset prices, interest rates, market volatility and market liquidity. The market risk will probably arise when a financial institution is actively engaged in trading assets, liabilities and derivative instruments and not when such items are held for long-term investments, financing and hedging purposes.
59-5-2- Executive units charged with market risk management
Saman Bank firmly believes in active management of market risk and, with this view in mind, it has devised a coherent structure to actively manage such risks. In this structure, the board of directors, High Risk Committee, Resource Allocation Committee (ALCO), Investment Commission, Investment Affairs Manager, International Division and Risk Department will play leading roles. The units and departments which are tasked with decision-making in the area of risk management are listed below:
Shares:
• Senior executive commission at the highest level – for a transaction amount in excess of 50 billion rials in a day or 10% of the investee company (whichever is lower);
• Investment Commission – for a transaction amount up to the limit Rls. 50 billion in a day or 10% of the
investee company (whichever is lower);
• Deputy for Investment and Affiliates – for a transaction amount from 3 billion rials up to 30 billion rials in a day and less than 5% of the investee company;
• Investment Affairs Manager – for a transaction amount from 0.2 to 3 billion rials in a day;
• Investment expert – for a transaction amount up to the limit of 200 million rials in a ady.
Foreign currencies:
• The International Division and, more professionally, the foreign exchange office are responsible for decision-making on the authorized limits of transactions;
• In certain cases at the weekly commissions held at the International Division, the board chairperson and CEO will participate in decision-making process as deemed proper by the bank’s special and mega policies.
59-5-3-Methods of measuring the market risk
The bank trading portfolio is made up of two segments:
• Shares/stocks
• Foreign exchange open positions
To evaluate the market risk of shares, the value at-risk of total shares portfolio with a confidence level of 99% will be calculated.
Pursuant to Basel II requirements and the CBI’s evidence regarding the credit risk, the historical simulation method shall be employed to calculate the necessary capital to cover the risk of shares portfolio. Notably, as regards the foreign exchange market risk, the forex open position for the total portfolio as well as the degree of positive/negative open position of each of the currencies and the amount of required capital for the forex risk coverage and value-at-risk of foreign currency portfolio, the historical simulation method will also be used. The open position of a foreign currency will include the absolute value of the following items:
A. the rial equivalent of the difference between forex assets and liabilities in any currency entered in the on-line accounts of balance sheet;
B. the rial equivalent of the difference between the bank’s and customers’ obligations in any currency entered in the off-line accounts of balance sheet.
Pursuant to the CBI’s directive, the authorized limit of open position for any of the currencies (positive or negative) is maximum up to 10% of the bank base capital and the authorized limit of open position for all aggregate currencies (positive or negative) is maximum up to 30% of the bank base capital.
59-5-4- Analyzing the value-at-risk investment in shares and other market-priced investments:
Considering the historical simulation method and percentage of possible changes thereupon in the market value, the level of value-at-risk for investment in shares and other market-priced investments have been illustrated in the table below:
1. Possible change in market price has been calculated for a 10-day period.
2. Effect on profit and loss at market price has been calculated for a 10-day period.
2017 2016
Type of investment Possible changein market price (1)
Effect on profit and loss (2)
Possiblechange in market price
Effecton profit and loss
Percentage Rls (M) Percentage Rls (M)
Investment in marketable shares (-4.5 , 4.4) (1216) (-5.2 , 8.0) 7400
Investment in units of mutual funds (-1.9 , 2.3) 280 (-2.8 , 4.8) 878
166 167Financial Report
59
-5-5
- A
na
lyzin
g t
he
va
lue
-at-
risk
fo
reig
n e
xch
an
ge
ra
te
The
posi
tion
of a
sset
s an
d lia
bilit
ies
and
fore
ign
curr
ency
obl
igat
ions
at y
ear-
end
is s
how
n in
this
tabl
e:
US
Dol
lar
Euro
UK
Pou
ndU
AE D
irha
m J
apan
ese
Yen
Swis
s Fr
anc
Can
adia
nD
olla
r A
ustr
alia
nD
olla
rTu
rkis
h Li
ra In
dian
Rup
ee C
hine
seYu
anO
man
i Ria
l S
outh
Kor
ean
Won
Cas
h in
han
d 1
9,23
5,34
3 1
1,58
2,64
7 2
22,2
81
5,0
64,2
09
0 0
0 0
2,6
15
0 0
0 0
Due
from
ban
ks a
nd o
ther
cre
dit
inst
itutio
ns 3
9,89
7,15
0 3
78,9
56,9
40
4,4
95,5
90
41,
074,
881
1,2
68,9
47,8
10
13,
397,
879
0 1
2,74
8 1
11,5
32,6
50
1,6
44,9
30,8
14
59,
804,
599
10,
802,
924
9,9
86,9
28,7
91
Due
from
the
gove
rnm
ent
0 0
0 0
0 0
0 0
0 0
0 0
0
Loa
ns g
rant
ed to
and
am
ount
s du
e
from
gov
ernm
enta
l ent
ities
0 0
0 0
0 0
0 0
0 0
0 0
0
Loa
ns g
rant
ed to
and
am
ount
s du
efr
om n
on-g
over
nmen
tal
entit
ies/
pers
ons
19,
669,
662
127
,299
,901
0
1,1
69,6
00
3,7
93,0
84
1,9
89,1
41
0 0
0 1
1,21
3,76
0 4
,762
,601
0
2,6
20,9
64,5
20
Inve
stm
ent i
n sh
ares
and
oth
erse
curi
ties
0 0
0 0
0 0
0 0
0 0
0 0
0
Due
from
sub
sidi
arie
s an
d af
filia
tes
0 0
0 0
0 0
0 0
0 0
0 0
0
Oth
er a
ccou
nts
reci
evab
le 0
0 0
0 0
0 0
0 0
0 0
0 0
Tang
ible
fixe
d as
sets
0 0
0 0
0 0
0 0
0 0
0 0
0
Inta
ngib
le a
sset
s 0
0 0
0 0
0 0
0 0
0 0
0 0
Stat
utor
y de
posi
t 0
0 0
0 0
0 0
0 0
0 0
0 0
Oth
er a
sset
s 1
9,11
8,78
2 9
9,92
5,64
0 0
36,
940,
749
218
,556
0
0 0
78,
720
141
,170
2
4,14
2,41
0 0
54,
456,
858,
774
Tota
l for
ex a
sset
s 9
7,92
0,93
7 6
17,7
65,1
28
4,7
17,8
71
84,
249,
439
1,2
72,9
59,4
50
15,
387,
020
0 1
2,74
8 1
11,6
13,9
85
1,6
56,2
85,7
44
88,
709,
610
10,
802,
924
67,
064,
752,
085
Due
to b
anks
and
oth
er c
redi
tin
stitu
tions
(8,1
83,3
56)
(108
,315
,539
)(4
93)
(2,5
77,8
21)
(2,7
28,1
84)
(2,2
96,1
72)
00
0(2
0,04
3,93
0)0
(11,
065)
0
Cus
omer
s' d
epos
its(6
,585
,728
)(1
17,2
91,8
50)
(92,
968)
(11,
732,
005)
(574
,573
,245
)(1
,831
,232
)(1
75)
(23,
891)
(4,7
01,0
44)
(1,1
44,3
66,5
41)
(90,
146,
033)
(8,9
32,6
03)
(6,5
90,6
62,4
53)
Div
iden
ds p
ayab
le0
00
00
00
00
00
00
Deb
t sec
uriti
es0
00
00
00
00
00
00
Prov
isio
n fo
r pe
rfor
man
ce ta
x0
00
00
00
00
00
00
Prov
isio
ns a
nd o
ther
liab
ilitie
s(4
,298
,709
)(1
8,57
5,67
5)0
(266
,940
)0
(4,5
20)
00
0(1
1,21
3,76
0)(2
,306
,342
)0
(2,5
89,2
73,8
35)
Inve
stm
ent d
epos
itors
' equ
ity(1
04,4
12,8
50)
(306
,725
,496
)(8
15,2
38)
(15,
967,
007)
(4,0
61,7
72)
(3,8
93,1
01)
(63,
100)
(718
)(3
,268
,001
)0
(1,0
00)
00
Tot
al li
abili
ties
and
inve
stm
ent
depo
sito
rs' e
quity
(123
,480
,643
)(5
50,9
08,5
60)
(908
,699
)(3
0,54
3,77
3)(5
81,3
63,2
01)
(8,0
25,0
25)
(63,
275)
(24,
609)
(7,9
69,0
45)
(1,1
75,6
24,2
31)
(92,
453,
375)
(8,9
43,6
68)
(9,1
79,9
36,2
88)
Net
ass
ets
(liab
ilitie
s) a
s at
Mar
ch20
, 201
7(2
5,55
9,70
7) 6
6,85
6,56
7 3
,808
,172
53,
705,
666
691
,596
,249
7
,361
,994
(6
3,27
5)(1
1,86
1) 1
03,6
44,9
40 4
80,6
61,5
14(3
,743
,765
) 1
,859
,256
57,
884,
815,
797
Ria
l equ
ival
ent o
f ope
n fo
rex
posi
tion
(828
,645
,708
,072
) 2
,330
,018
,220
,699
153
,054
,242
,460
474
,059
,910
,251
198
,986
,072
,659
239
,124
,927
,764
(1,5
35,2
29,9
21)
(296
,086
,642
)92
7,10
3,99
1,61
0 2
38,4
08,1
10,7
06(1
7,60
3,18
3,50
0) 1
56,5
19,6
34,0
43 1
,661
,294
,213
,365
Per
cent
age
of o
pen
fore
x po
sitio
nco
mpa
red
to b
ase
capi
tal (
perc
enta
ge)
(6.5
1) 1
8.30
1.2
0 3
.72
1.5
6 1
.88
(0.0
1)0
7.2
8 1
.87
(0.1
4) 1
.23
13.
05
Per
cent
age
of o
pen
fore
x po
sitio
n c
ompa
red
to e
ffec
tive
base
cap
ital
(per
cent
age)
(6.9
7) 1
9.59
1.2
9 3
.99
1.6
7 2
.01
(0.0
1)0
7.8
0 2
.00
(0.1
5) 1
.32
13.
97
Net
ass
ets
(lia
bilit
ies)
as
at M
arch
19,
201
6(3
0,64
7,03
2) 9
5,85
1,94
6 3
,762
,767
(21,
452,
818)
(30,
417,
615)
6,8
53,6
74(6
5,29
5)(1
1,87
1) 2
1,70
9,43
0 1
,503
,423
,394
31,
626,
018
2,0
18,6
22 4
6,71
7,72
1,98
2
Obl
igat
ions
for
LCs
open
ed 0
53,
786,
313
0 9
5,06
4 0
16,
990,
431
0 0
50,
255
578
,899
,157
0
0 0
Obl
igat
ions
for
LGs
issu
ed 0
1,3
39,7
53
0 0
0 0
0 0
0 0
0 0
0
Obl
igat
ions
for
the
amou
nts
rece
ived
from
the
Nat
iona
l Dev
elop
men
t Fun
d 0
0 0
0 0
0 0
0 0
0 0
0 0
Obl
igat
ions
for
amou
nts
rece
ived
from
the
Fore
x R
eser
ve F
und
0 0
0 0
0 0
0 0
0 0
0 0
0
Considering the historical simulation method and percentage of possible changes thereupon in the foreign exchange rate, the level of value-at-risk for investment in shares and other market-priced investments have been illustrated in the table below:
1- Possible change in market price has been calculated for a 10-day period.
2- Effect on profit and loss at market price has been calculated for a 10-day period.
2017 2016
Possible change inmarket price (1)
Effect on profit andloss (2)
Possible change inmarket price
Effect on profit andloss
Percentage Rls (M) Percentage Rls (M)
US Dollar (-0.02 , 0.32) (1,335) (-0.02 , 0.43) (1,967)
Euro (-1.86 , 2.27) 3,940 (-2.68 , 2.98) 9,718
UK Pound (-2.9 , 3.14) (322) (-2.49 , 2.58) 171
UAE Dirham (-0.04 , 0.33) 748 (-0.04 , 0.43) (375)
Japanese Yen (-2.89 , 3.39) 709 (-2.24 , 2.68) (0)
Swiss Franc (-1.92 , 2.08) 435 (-2.71 , 3.41) 370
Canadian Dollar (-2.61 , 2.73) (2) (-2.63 , 2.73) (1)
Australian Dollar (-3.05 , 3.1) (1) (-3.67 , 3.58) (0)
Turkish Lira (-3.83 , 2.93) (2,337) (-3.57 , 3.50) (185)
Indian Rupee (-1.39 , 1.4) 430 (-1.43 , 2.06) 160
Chinese Yuan (-1.02 , 0.82) 1 (-0.87 , 1.01) 137
Omani Rial (-0.28 , 0.41) 242 (-0.20 , 0.47) 337
South Korean Won (-2.8 , 2.89) 3,513 (-2.61 , 2.73) 1
59-5-6- Capital sum required for market risk coverage
Shares risk Forex risk
Measurement method Value-at-risk Required capitalreserve Value-at-risk Required capital
reserve
Total capital reserve for market risk
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Historical simulation model 10,744 101,924 26,725 510,286 612,210
168 169Financial Report
59-5-7- Analyzing the gap between the assets and liabilities sensitive to interest rates
2017
Book value Less than 1month 1 - 3 months 3 months to 1
year 1 - 5 years More than 5years
Non-sensitiveto interest rate
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Assets
Cash in hand 31,494,714 23,849,734 805,050 0 0 0 6,839,930
4.57% 5.96% 4% 0 0 0 0%
Due from banks and other creditinstitutions
9,676,029 4,202,656 0 0 0 0 5,473,373
9.6% 22% 0 0 0 0 0%
Due from the government 0 0 0 0 0 0 0
Loans granted to and amounts duefrom governmental entities
0 0 0 0 0 0 0
Loans granted to and amounts duefrom non-governmental entities/persons
127,750,201 58,898,248 19,898,137 25,757,206 19,173,105 4,023,505 0
19% 21.4% 19.3% 19.1% 15.4% 12.0%
Investments in shares and othersecurities
2,777,793 0 0 0 0 0 2,777,793
Due from subsidiaries and affiliates 3,578,946 0 0 0 0 0 3,578,946
Other accounts receivable 5,945,744 0 0 0 0 0 5,945,744
Tangible fixed assets 3,613,037 0 0 0 0 0 3,613,037
Intangible assets 4,301,189 0 0 0 0 0 4,301,189
Statutory deposit 23,035,684 13,606,090 1,249,677 7,113,702 1,066,215 0 0
Other assets 45,861,562 0 0 0 0 0 45,861,562
258,034,899 100,556,728 21,952,864 32,870,908 20,239,320 4,023,505 78,391,574
Liabilities and deposits
Due to banks and other creditistitutions
(5,475,289) (272,390) (1,487,541) (818,989) 0 0 (2,896,369)
1.2% 1.74% 2.47% 2.9% 0 0 0.0%
Customers' deposits (17,098,373) 0 0 0 0 0 (17,098,373)
Dividends payable (52,482) 0 0 0 0 0 (52,482)
Debt securities 0 0 0 0 0 0 0
Provision for performance tax 0 0 0 0 0 0 0
Provisions and other liabilities (9,350,612) 0 0 0 0 0 (9,350,612)
Investment depositors' equity(214,853,049) (125,765,863) (11,551,204) (65,754,450) (9,855,401) 0 (1,926,131)
15.1% 12.64% 17.5% 18.4% 22.6% 0 0
Total liabilities and deposits (246,829,805) (126,038,253) (13,038,745) (66,573,439) (9,855,401) 0 (31,323,967)
Total shareholders' equity (11,205,094) (11,205,094)
Total liabilities, deposits and shareholders' equity
(258,034,899) (126,038,253) (13,038,745) (66,573,439) (9,855,401) 0 (42,529,061)
Gap (25,481,526) 8,914,118 (33,702,531) 10,383,920 4,023,506 36,399,824
Accumulated gap (25,481,526) (16,567,408) (50,269,939) (39,886,018) (35,862,513) 537,313 59-6- Operational risk
59-6-1- Definition of operational risk
Operational risk is the risk arising from human error, inefficiency of internal processes, system failure and external events. The operational risk does not include reputation risk and legal risk.
59-6-2- Executive units of operational risk management
Saman Bank has designed and developed a coherent framework in harmony with other departments/divisions of this bank so as to employ the scope of operational risk management in accordance with the CBI’s regulatory laws and in line with the best prevailing practice in banking industry and accordingly strives to ensure that operational risks are consistently and comprehensively identified, evaluated, measured and controlled. The
2016
Book value Less than 1month
1 - 3 months
3 months to 1year
1 - 5 years
More than5 years
Non-sensitiveto interest rate
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Assets
Cash in hand 49,362,165 44,772,819 0 0 0 0 4,589,346
8.7% 9.63% 0%
Due from banks and other creditinstitutions
12,833,651 4,569,252 0 0 0 0 8,264,399
8% 22% 0%
Due from the government0 0 0 0 0 0 0
Loans granted to and amounts duefrom governmental entities
0 0 0 0 0 0 0
Loans granted to and amounts duefrom non-governmental entities/persons
126,987,987 67,785,949 33,799,799 162,727 12,836,695 12,402,817 0
22% 23.56% 23.26% 24.50% 20.36% 11.72% 0
Investments in shares and othersecurities
3,238,567 0 0 0 0 0 3,238,567
Due from subsidiaries and affiliates 1,030,522 0 0 0 0 0 1,030,522
Other accounts receivable 5,651,666 0 0 0 0 0 5,651,666
Tangible fixed assets 3,593,857 0 0 0 0 0 3,593,857
Intangible assets 4,119,563 0 0 0 0 0 4,119,563
Statutory deposit 21,131,325 11,962,093 191,466 620,125 8,026,983 330,658 0
Other assets 29,606,051 0 0 0 0 0 29,606,051
257,555,354 129,090,113 33,991,265 782,852 20,863,678 12,733,475 60,093,971
Liabilities and deposits
Due to banks and other creditistitutions
(27,042,210) (583,648) (4,666,611) (1,709,700) 0 0 (20,082,251)
0.44% 0.45% 1.23% 3.40% 0 0 0%
Customers' deposits (21,885,077) 0 0 0 0 0 (21,885,077)
Dividends payable (157,034) 0 0 0 0 0 (157,034)
Debt securities 0 0 0 0 0 0 0
Provision for performance tax 0 0 0 0 0 0 0
Provisions and other liabilities (4,683,287) 0 0 0 0 0 (4,683,287)
Investment depositors' equity(194,173,795) (108,721,456) (1,740,197) (5,636,200) (72,955,901) (3,005,301) (2,114,740)
17.63% 16.45% 4.78% 6.81% 20.3% 22.9%
Total liabilities and deposits (247,941,403) (109,305,104) (6,406,808) (7,345,900) (72,955,901) (3,005,301) (48,922,389)
Total shareholders' equity (9,613,951) (9,613,951)
Total liabilities, deposits and shareholders' equity (257,555,354) (109,305,104) (6,406,808) (7,345,900) (72,955,901) (3,005,301) (58,536,340)
Gap 19,785,008 27,584,455 (6,563,048) (52,092,223) 9,728,175 1,972,265
Accumulated gap 19,785,008 47,369,464 40,806,416 (11,285,807) (1,557,632) 414,634
170 171Financial Report
following departments or divisions are involved in this process:
• Risk Department: This department acts as an executive unit for operational risk, with the aim of identifying the resources exposed to operational risk and implementing the process of operational risk management at the level of organizational process. More importantly, the process of operational risk management is practiced in a unified approach which includes risk identification, risk assessment, risk indicators monitoring and further through risk mitigation plans in line with the risk appetite. As it stands, by receiving the periodic and updated reports from other executive departments which are acting in this connection the operational risk in the bank’s key processes is monitored, measured and evaluated.
• Quality Improvement Department: This department’s main functions are to design and document the operational procedures, define and develop the kind of relationship with other organizational divisions with respect to the operational processes, determine the monitoring indicators for evaluation and control as well as establishing an effective link between regulations and directives with the existing processes. This structure has been devised and developed for standardization of processes and minimization of operational events or occurrences.
• Inspection Department: This department will perform periodic inspections of operational processes at branch levels in accordance with the prevailing directives, procedures and by-laws and then will file reports on the findings of such inspections. The contents of these reports will be used as the base data for analyzing the operational events at branch levels. As such, the operational risk of branches will be assessed by the type of events contemplated by the Basel Committee with respect to the number (frequency) of events and the severity of possible losses as reported by the Risk Department.
59-6-3- Preventive measures from occurrence of human intentional and unintentional errors
In view of the fact that one of the effective factors which may result in operating losses is typically shaped up by individuals in an organization, Saman Bank has taken a series of actions as listed below to prevent the occurrence of human intentional and unintentional events by its personnel:
• attempt to create culture and a transparent environment in which all employees, divisions and departments will be aware of performing their duties and responsibilities thoroughly with regard to the adverse events of operational risk;
• dissemination of a proper culture with regard to operational risk so as to institutionalize the enforcement of decent ethical standards;
• planning to organize training courses to ensure that the staff members have sufficient knowledge and expertise in their career path.
59-6-4- Actions to confront a crisis
To obtain assurance for maintaining the situation in times of crisis and/or returning to normal situation under a well-defined plan in the shortest possible time aimed at minimizing the implications of crisis occurrence, Saman Bank has designed a non-operating defense by-law.
59-6-5- Method of assessing operational risk
Saman Bank employs the base index approach for inclusion of operational risk in its calculations related to capital adequacy ratio as required by the Basel II guidelines. Additionally, Saman Bank is currently striving to create and develop the structures required for assessing the operational risk by using an advanced calculation method. To this end, the bank needs to identify and assess the operational risk in all working processes. The identification and assessment tools are listed below:
• Using the risk self-assessment method qualitatively through interaction with directors and operational divisions of the bank;
• Using the findings and collected data in connection with adverse operational risk events in the bank’s daily operations which are derived from regular inspection and auditing;
• Using the risk key indicators in the important processes so as to conduct a survey of the operational risk trends.
59-6-6- Mechanisms for controlling and monitoring operational risk
Mechanism for controlling operational risk
Upon assessment of operational risk, the bank will determine which categories of risks it may accept or control. The control of operational risk shall take place through full cooperation with respective executive
amount of capital exposed to operational risk (Rls (M))
2017 2016
measurement method Rls (M) Rls (M)
Base index 172,000 321,500
59-7- Capital management
59-7-1- Base capital
The bank base capital for the fiscal year ended March 20, 2017 was the amount of Rls. 12, 718,003/- million.
The effective base capital amounting to Rls.11,892,888/- million is used to calculate the contingency ratios until the approval date of financial statements. The bank’s new base capital shall also be fixed on the basis of approved financial statements and endorsed by the Central Bank after any possible changes, modifications or deductions such as distribution of dividends among shareholders have been made in the financial statements by the general meeting.
2017 2016
Rls (M) Rls (M)
A- Tier 1 capital Capital less funds raised out of assets revaluation reserve 5,575,004 5,575,004
Legal reserve 1,536,569 1,523,868
Other reserves 0 0
Shares premium 0 0
Retained profit (loss) 161,379 1,202,145
Treasury shares 0 0
7,272,952 8,301,017
0 0
B- Tier 2 capital
General provision for doubtful debts 1,779,761 1,788,907
Fixed assets revaluation reserve 3,932,144 2,425,671
Reserve from shares revaluation 0 0
5,711,905 4,214,578
Less: addition of tier 2 capital to tier 1 capital 0 0
Tier 2 capital 5,711,905 4,214,578
Base capital prior to deductions 12,984,857 12,515,595
C- Deductions from base capital
Investment in banks and secondary credit institutions - unconsolidated 0 0
Investment in other banks and credit institutions (266,854) (152,885)
Base (regulatory) capital 12,718,003 12,362,710
Effective base capital 11,892,888 11,799,287
departments. The key measures taken in this area include identification of the processes bottleneck which is deemed to be a factor for creating operational risk (individuals, systems, processes and external events) and development, review of amended and preventive by-laws related to the occurrence of operational adverse incidents.
Mechanism for monitoring operational risk
The bank’s operational risk position will be monitored so as to review the efficiency and effectiveness of controls as well as the effect of any new incident on the organization profile during the course of specified periods. During each period, the amount of resources exposed to operational risk, frequency and severity of the effect of risk factors, key risk indicators and further the degree of efficiency and effectiveness of current controls will be reviewed and monitored.
59-6-7- The capital sum required for operational risk coverage
The capital sum required for operational risk coverage at Saman Bank will be measured and gauged by using the base index method. The amount of capital exposed to operational risk is listed below:
172 173Financial Report
59
-7-2
- C
ap
ita
l a
llo
ca
tio
n
The
tota
l ris
k w
eigh
ted
asse
ts fo
r th
e fis
cal y
ear
ende
d M
arch
20,
201
7 ar
e as
follo
ws:
2017
2016
ass
ets
and
liabi
litie
sR
isk
fact
or R
isk
adju
sted
ass
ets
and
liabi
litie
s a
sset
s an
dlia
bilit
ies
Ris
k fa
ctor
Ris
k ad
just
edas
sets
and
liabi
litie
s
Rls
(M
)P
erce
nta
ge
Rls
(M
)R
ls (
M)
Pe
rce
nta
ge
Rls
(M
)
Cas
h in
han
d 2
,667
,083
0
0 2
,109
,620
0
0
Sta
tuto
ry d
epos
it 2
3,03
5,68
4 0
0 2
1,13
1,32
5 0
0
Due
from
CB
I 9
,645
,020
0
0 1
0,60
9,77
9 0
0
Due
from
ban
ks a
nd o
ther
cre
dit i
nstit
utio
ns 2
8,85
8,64
0 20
5,7
71,7
28
49,
343,
012
20 9
,868
,602
Due
from
the
gove
rnm
ent
00
0 0
0 0
Gov
ernm
ent p
artic
ipat
ion
bond
s 0
0 0
458
,902
0
0
Non
-gov
ernm
ent p
artic
ipat
ion
bond
s 0
0 0
010
0 0
Inve
stm
ent i
n sh
ares
2,3
81,9
05
100
2,3
81,9
05.0
2,6
94,6
33
100
2,6
94,6
33
Acco
unts
rec
eiva
ble
10,
125,
287
100
10,
125,
287
6,8
15,5
94
100
6,8
15,5
94
Hir
e pu
rcha
se a
nd h
ousi
ng lo
ans
28,
793,
501
50 1
4,39
6,75
1 2
7,56
2,47
7 50
13,
781,
239
Oth
er lo
ans
paid
and
am
ount
s du
e 1
00,7
36,4
61
100
93,
278,
388
93,
773,
152
100
90,
074,
577
Net
fixe
d as
sets
and
goo
dwill
7,9
14,2
26
100
7,9
14,2
26
7,7
13,4
20
100
7,7
13,4
20
Oth
er a
sset
s 4
5,39
0,00
1 10
0 4
5,39
0,00
1 2
0,48
1,01
5 10
0 2
0,48
1,01
5
Gua
rant
ee fo
r pa
rtic
ipat
ion
bond
s of
non
-gov
ernm
enta
l sec
tor
(Con
vers
ion
fact
or 5
0%)
010
0 0
010
0 0
Obl
igat
ions
for
LGs
issu
ed (c
onve
rsio
n fa
ctor
of 2
0%)
768
,132
10
0 7
68,1
32
1,1
47,4
74
100
1,1
47,4
74
Obl
igat
ions
for
LGs
issu
ed (c
onve
rsio
n fa
ctor
of 5
0%)
76
,872
10
0 3
76,8
72
276
,508
10
0 2
76,5
08
Obl
igat
ions
for
LCs
issu
ed (c
onve
rsio
n fa
ctor
of 2
0%)
644
,250
10
0 6
44,2
50
779
,489
10
0 7
79,4
89
Obl
igat
ions
for
LCs
issu
ed (c
onve
rsio
n fa
ctor
of 5
0%)
100
,727
10
0 1
00,7
27
28,
815
100
28,
815
Obl
igat
ions
for
tran
sact
iona
l con
trac
ts (c
onve
rsio
n fa
ctor
of 5
0%)
1,2
87,5
95
100
1,2
87,5
95
1,4
86,6
43
100
1,4
86,6
43
Oth
er li
abili
ties
1,3
38,9
12
100
1,3
38,9
12
117
,567
10
0 1
17,5
67
Tota
l ris
k w
eigh
ted
asse
ts a
nd li
abili
ties
183
,774
,774
155
,265
,576
2017 2016
Rls (M) Rls (M)
Base capital 11,892,888 11,799,287
Total risk weighted assets and liabilities 183,774,774 155,265,576
Capital adequacy ratio (Percentage) 6.5 8
2017 2016
Rls (M) Rls (M)
Total shareholders’ equity 11,205,094 9,613,951
Total assets 258,034,899 257,555,354
Leverage ratio (Percentage) 4 4
2017 2016
Rls (M) Rls (M)
Base capital 12,718,003 12,362,710
Total risk weighted assets and liabilities 183,774,774 155,265,576
Capital adequacy ratio (Percentage) 7 8
59-7-3- Capital adequacy ratio (CAR)
The bank capital adequacy for the fiscal year ended March 20, 2017 is 6.50 percent.
59-7-5- Leverage ratio
The leverage is the total shareholders’ equity to bank’s assets. The bank’s leverage ratio for the fiscal year ended March 20, 2017 was 4%.
59-7-4- Final Capital adequacy ratio after general meeting
The capital adequacy ratio in 2017, calculated with base capital in 2017, is 7 percent.
59-7-4-1- The capital adequacy ratio after Banks capital increase to the amount of Rls. 12,000 billion under authorization granted by the centeral Bank.The CAR will be raised to 8.19 percent.
60-1- The basis for division of sectors
The business sectors in Saman Bank include collaborative banking (by proxy), interest free (Gharzolhasaneh) banking, international banking and electronic banking.
60-2- Information on reportable operating sectors
The information related to each of the reportable sectors has been provided in the following table. The profit before tax for each sector is used to assess the performance of that sector.
60- Operating sectors
174 175Financial Report
Collaborativebanking
Interest freebanking
Internationalbanking E-banking Other
activities Total
Rls (M) Rls (M) Rls (M) Rls (M) Rls (M) Rls (M)
Income from loans granted and deposits in other banks 23,393,254 0 865,650 0 0 24,258,904
Interest expenses on deposits (31,547,403) 0 (400,514) 0 0 (31,947,917)
Net income from loan interest and deposits in otherbanks
(8,154,149) 0 465,136 0 0 (7,689,013)
Fee and commission incomes 414,499 23,945 58,801 832,756 0 1,330,001
Fee and commission expenses(236,804) (816) (121,569) (1,484,758) 0 (1,843,947)
Net income from fees and commissions 177,695 23,129 (62,768) (652,002) 0 (513,946)
Net profit (loss) from investments 0 0 0 0 5,029,559 5,029,559
Net profit (loss) from forex exchanges/transactions 0 0 0 1,384,565 0 1,384,565
Other operating incomes 0 0 0 0 6,206,557 6,206,557
0 0 0 1,384,565 11,236,116 12,620,681
Net incomes earned outside the bank (7,976,454) 23,129 402,368 732,563 11,236,116 4,417,722
Net incomes from interbank sectors 0 0 0 0 0 0
Total incomes from bank's operating sectors (7,976,454) 23,129 402,368 732,563 11,236,116 4,417,722
Expenses for doubtful debts of operating sector (300,000) 0 0 0 0 (300,000)
Other direct expenses attributable to operating sector 0 0 0 0 0 0
Profit (loss) of each sector before non-attributablegeneral expenses
(8,276,454) 23,129 402,368 732,563 11,236,116 4,117,722
General expenses non-attributable to sectors (4,033,048)
Profit before tax 84,674
• The non-rial transactions of collaborative banking and interest-free banking sectors are disclosed in the international banking sector.
• All non-rial transactions are disclosed in the international banking sector.
60
-3-
Ge
og
rap
hic
al
co
nce
ntr
ati
on
of
ma
jor
ite
ms o
f a
sse
ts, li
ab
ilit
ies a
nd
in
co
me
s
In p
rovi
ding
the
geog
raph
ical
info
rmat
ion,
the
maj
or it
ems
of a
sset
s ar
e re
port
ed o
n th
e ba
sis
of th
eir
loca
tion
and
the
maj
or it
ems
of li
abili
ties
and
inco
mes
on
the
basi
s of
the
bank
cou
nter
part
y’s
dom
icile
/res
iden
ce in
var
ious
geo
grap
hica
l reg
ions
.
2017
2016
Curr
ency
Typ
eIr
anIr
aqU
AE
Oth
ers
Tota
lIr
anIr
aqU
AE
Oth
ers
Tota
l
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Rls
(M
)R
ls (
M)
Ass
ets
Cas
h in
han
d 3
1,49
4,71
4 0
00
31,
494,
714
49,
362,
165
00
0 4
9,36
2,16
5
Due
from
ban
ks a
nd o
ther
cre
dit i
nstit
utio
ns 9
,676
,029
0
00
9,6
76,0
29
12,
833,
651
00
0 1
2,83
3,65
1
Due
from
gov
ernm
ent
00
00
0
- 0
00
0
Loa
ns g
rant
ed to
and
am
ount
s du
e fr
om g
over
nmen
tal
entit
ies
00
00
0
- 0
00
0
Loan
s gr
ante
d to
and
am
ount
s du
e fr
om n
on-g
over
n-m
enta
l ent
ities
/per
sons
127
,750
,201
0
00
127
,750
,201
1
26,9
87,9
87
00
0 1
26,9
87,9
87
Inve
stm
ents
in s
hare
s an
d ot
her
secu
ritie
s 2
,777
,793
0
00
2,7
77,7
93
3,2
38,5
67
00
0 3
,238
,567
Due
from
sub
sidi
arie
s an
d af
filia
tes
3,5
78,9
46
00
0 3
,578
,946
1
,030
,522
0
00
1,0
30,5
22
Oth
er a
ccou
nts
rece
ivab
le 5
,945
,744
0
00
5,9
45,7
44
5,6
51,6
66
00
0 5
,651
,666
Tang
ible
fixe
d as
sets
3,6
13,0
37
00
0 3
,613
,037
3
,593
,857
0
00
3,5
93,8
57
Inta
ngib
le a
sset
s 4
,301
,189
0
00
4,3
01,1
89
4,1
19,5
63
00
0 4
,119
,563
Stat
utor
y de
posi
t 2
3,03
5,68
4 0
00
23,
035,
684
21,
131,
325
00
0 2
1,13
1,32
5
Tot
al a
sset
s 2
12,1
73,3
370
00
212
,173
,337
227
,949
,303
0
00
227
,949
,303
Liab
ilitie
s
Due
to b
anks
and
oth
er c
redi
t ist
itutio
ns 5
,475
,289
0
00
5,4
75,2
89
27,
042,
210
00
0 2
7,04
2,21
0
Cus
tom
ers'
dep
osits
17,
098,
373
00
0 1
7,09
8,37
3 2
1,88
5,07
7 0
00
21,
885,
077
Deb
t sec
uriti
es0
00
00
00
00
0
Inve
stm
ent d
epos
itors
' equ
ity 2
14,8
53,0
49
00
0 2
14,8
53,0
49
194
,173
,795
0
00
194
,173
,795
Tot
al li
abili
ties
237
,426
,711
00
0 2
37,4
26,7
11 2
43,1
01,0
820
00
243
,101
,082
176 177Financial Report
61-1- Change of main shareholders (over one percent)
During the fiscal year ended March 20, 2017, no natural or legal person entered the category of shareholders over one percent by purchasing shares. Further, no natural or legal person exited from the category of shareholders over one percent by selling shares.
61-2- Transactions with directors
This bank has no record of transactions with its directors (the directors include the managing director/CEO, members of board of directors and members of the executive board.)
61- Disclosure about related partiesName of related party Type of
Relationship Type of dealIs it liable to article 129 of Commercial
Code?Pricing method Amount
Gross profit (loss)
Balance (due) March 20, 2017
Rls (M) Rls (M) Rls (M)
Subsidiaries
Saman Pardazeshgaran
(Processing)
JBM (Joint Board
Member) LGs issued
1 itemYes
Bank's by-laws and internal transactionscommission
12,883 - 11,594
Saman Satelite Telecommunication Co-Group
LGs issued 14 items
No Bank's by-laws and
internal transac-tions commission
26,397 3,077 24,136
Civil partnership loan
1 item43,077 0 43,077
Atieh Andishan Sepehr Mehr
Co-Group
Loans - 6 items
No
Bank's by-laws and internal transactionscommission
131,943 14,111 67,004
LGs issued 2 items
11,519 0 0
Atieh Andishan Sepehr Shargh Co-Group Sale of shares No
Bank's by-laws andinternal transac-tions commission
1,970,676 0 1,970,676
Iranian Credit Bureau and
Scoring
JBM (Joint Board
Member) Debt collection
contractYes
Bank's by-laws and internal transactionscommission
19,872 0 (3,312)
Saman Brokerage
Co-Group
Loans - 310 items
No
Bank's by-laws and internal transactionscommission
5,152,233 18,183 111,153
LGs issued – 2 items 10,087 0 9,078
Lease contract 3 items 1,836 0 344
Affiliates
Adonis Co-Group
Contracts - 3 items
No
Bank's by-laws and internal transactionscommission
80,836 0 (13,196)
Lease contract Pasdaran/Shiraz 140 0 -
Civil partnershiploan – 3 items 78,880 2,625 57,972
Saman Kish Electronic Payment
JBM (Joint Board
Member)
Civil partnershiploan – 6 items
Yes
Bank's by-laws and internal transactionscommission
785,496 22,176 83,703
LGs issued – 19 items 201,938 0 177,729
Service & Leasecontracts - 6 items 158,544 0 255
Other relatedparties
Aftab Tejarat Saman
Other
LGs issued – 3 items
No
Bank's by-laws and internal transactionscommission
2,300 0 95
Cleaning services 87,950 0 (7,793)
Contracts 5 items 9,265 0 (1,031)
Behnad Bana Other
Contracts 5 items
No
Bank's by-laws and internal transactionscommission
258,244 0 105,366
LG issued – 1 item 6,268 0 -
Kala TejaratKhalij Fars
Other
Jaalah Contract(Swiss Franc)
5 items
No
Bank's by-laws and internal transactionscommission
424,746 806 -
LG issued – 1 item 3,100 0 2,790
Civil partnershiploan – 32 items 4,187,507 425,940 1,771,630.2
Saman Insurance
JBM (Joint Board
Member)
Insurance policies
Yes
Bank's by-laws and internal transactionscommission
79,545 0 (7,821)
Sale of shares 1,944,000 0 1,141,000
LGs issued 14 items 14,972 0 -
61-3- Transactions with related parties during the year are as follows:
178 179Financial Report
61-4- Account balances of related parties with whom no transactions have been conducted during the year as follows:
The amount due is related to the dividend receivable.
Allocation of the year-end accumulated earnings are subject to the approval of the shareholders’ ordinary general meeting in the following cases:
Name of related party Type of relationship
Received (Paid)
Adjustments (expenses of
doubtful debts and …)
Balance (due) at March 20, 2017
Balance (due) at March 19, 2016
Rls (M) Rls (M) Rls (M) Rls (M)
Saman Brokerage Co. Subsidiary 59,351 - 292,370 139,423
Atieh Andishan Sepehr Shargh Service Development Co. Subsidiary (200,000) - 200,000 -
Kardan Investment Bank Affiliate - - 264,600 -
Amount
Rls (M)
Legal duties
Distribution of at least 10 percent of net profit earned in 2016-2017 under the provision ofarticle 90 of the Commercial Code Amendment 8,467
Proposal by the board of directors
The amount of dividend proposed by the board of directors 0
63-1- Status of balance of interest- free sources and uses
Note March 20, 2017 March 20, 2016
Rls (M) Rls (M)
Interest-free sources
Interest-free deposits in rial 539,461 553,313
Total interest-free sources 539,461 553,313
Uses of interest-free savings
Loans granted and amounts due from persons
Ordinary loans (764,156) (140,918)
Staff loans (132) (54)
Loans based on the privilage of law (Note) 0 0
Total uses of interest-free savings (764,288) (140,972)
Statutory deposit on sources of interest-free deposits (67,057) (51,888)
Liquidity reserve on interst-free deposits (5%) (26,974) (27,666)
Surplus (shortage) of sources to uses of interest-free deposits (318,858) 332,787
62- Accumulated earnings at year-end
63- Performance of interest- free transactions for savings in rial (Gharzolhasaneh)
63-2- Net fee on interest- free transactions
63-3- Classification of interest- free facilities based on the loan purpose:
Note 2017 2016
Rls (M) Rls (M)
Fees received from interest-free loans 23,945 5,685
Prizes on interest-free deposits (816) (816)
Net fees on interest-free transactions 41-1 23,129 4,869
2017 2016
Rls (M) Rls (M)
Marriage 666,860 91,136
Relief (Emdad) Committee pensioners 79,418 36,531
Ordinary people 17,878 13,252
Staff members 132 53
764,288 140,972