consolidated accounts - habib metro bank · and consolidated statement of changes in equity, ... of...

77

CONSOLIDATED ACCOUNTS

79

AUDITORS’ REPORT TO THE MEMBERS

Karachi: March 2, 2009

We have audited the annexed consolidated financial statements comprising consolidated balance sheet ofHabib Metropolitan Bank Ltd. (the Bank) and its subsidiary companies (together referred to as Group) asat 31 December 2008 and the related consolidated profit and loss account, consolidated cash flow statementand consolidated statement of changes in equity, together with the notes forming part thereof for the yearthen ended, in which are incorporated the unaudited certified returns from the branches except for fifteenbranches which have been audited by us. We have also expressed separate opinions on the financialstatements of the Bank and its subsidiary company, Habib Metropolitan Financial Services Limited. Thefinancial statements of Habib Metropolitan Trade Services Limited (a subsidiary company) are unaudited.Hence, total assets of Rs. 2,760 thousand and net profit of Rs. 965 thousand pertaining to such subsidiarycompany have been incorporated in these consolidated financial statements by the management using theunaudited financial statements.

These consolidated financial statements are the responsibility of the Bank’s management. Our responsibilityis to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan.These standards require that we plan and perform the audit to obtain reasonable assurance about whetherthe consolidated financial statements are free of any material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements.An audit also includes assessing the accounting policies and significant estimates made by management,as well as, evaluating the overall presentation of the consolidated financial statements. We believe that ouraudit provides a reasonable basis for our opinion.

In our opinion, except for any adjustment that may have been required due to the unaudited figures in respectof a subsidiary company as referred to in the first paragraph of the report, the consolidated financial statementspresent fairly, in all material respects, the financial position of the Group as at 31 December 2008 and theresults of its operations, its cash flows and changes in equity for the year then ended in accordance withthe approved accounting standards as applicable in Pakistan.

FORD RHODES SIDAT HYDER & CO.Chartered Accountants

80

CONSOLIDATED BALANCE SHEETAS AT DECEMBER 31, 2008

ASSETS

Cash and balances with treasury banks 8 11,401,384 10,201,545Balances with other banks 9 2,974,237 3,691,183Lendings to financial institutions 10 98,176 3,989,249Investments 11 53,335,855 61,735,716Advances 12 108,261,259 89,826,806Operating fixed assets 13 1,528,913 1,294,486Deferred tax assets 14 1,145,665 –Other assets 15 3,369,135 2,128,703

182,114,624 172,867,688

LIABILITIES

Bills payable 16 2,372,146 3,210,041Borrowings 17 30,435,543 29,991,633Deposits and other accounts 18 128,127,997 121,066,389Sub-ordinated loans – –Liabilities against assets subject to finance lease – –Deferred tax liabilities 14 – 60,874Other liabilities 19 6,082,412 5,018,843

167,018,098 159,347,780

NET ASSETS 15,096,526 13,519,908

REPRESENTED BY

Share capital 20 6,022,020 5,018,350Reserves 7,039,936 6,383,936Unappropriated profit 3,179,905 2,061,674

16,241,861 13,463,960(Deficit)/Surplus on revaluation of assets-net of tax 21 (1,145,335) 55,948

15,096,526 13,519,908

CONTINGENCIES AND COMMITMENTS 22

2008 2007

Rupees in ‘000

Note

The annexed notes 1 to 45 and annexures I & II form an integral part of these financial statements.

KASSIM PAREKHChairman

ANJUM IQBALChief Executive

BASHIR ALI MOHAMMADDirector

FIRASAT ALIDirector

81

CONSOLIDATED PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED DECEMBER 31, 2008

Mark-up / return / interest earned 24 15,873,445 11,983,551Mark-up / return / interest expensed 25 (10,907,002) (8,259,184)

Net mark-up / interest income 4,966,443 3,724,367

Provision against non-performing loans and advances 12.4 1,004,572 434,740Provision for diminution in the value of investments 11.3 242,713 7,344Bad debts written off directly 12.6.1 2,535 76

(1,249,820) (442,160)

Net mark-up / interest income after provisions 3,716,623 3,282,207

Non mark-up / interest incomeFee, commission and brokerage income 1,185,599 997,687Dividend income 655,845 33,211Income from dealing in foreign currencies 2,043,127 1,153,845Gain on sale/redemption of securities 26 170,941 822,388Unrealized gain/(loss) on revaluation of investments classified as held-for-tradingOther income 27 220,743 169,516

Total non mark-up / interest income 4,276,255 3,176,647

7,992,878 6,458,854Non mark-up / interest expenses Administrative expenses 28 3,102,436 2,254,018

Other provisions / write offs – –Other charges 29 147,150 456

Total non mark-up / interest expenses (3,249,586) (2,254,474)

4,743,292 4,204,380Extraordinary / unusual items – –

Profit before taxation 4,743,292 4,204,380

Taxation - Current (1,994,037) (1,279,080)- Prior years (29,186) (174,000)- Deferred 559,667 46,108

30 (1,463,556) (1,406,972)

Profit after taxation 3,279,736 2,797,408Unappropriated profit brought forward 2,061,674 1,836,616

Profit available for appropriation 5,341,410 4,634,024

Basic earnings per share - (Rupees) 31 5.45 4.65

Diluted earnings per share - (Rupees) 31 5.45 4.65


2008 2007

Rupees in ‘000

Note

– –

(Restated)




FIRASAT ALIDirector

82

CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2008

CASH FLOW FROM OPERATING ACTIVITIESProfit before taxationLess: Dividend income 655,845 33,211

4,087,447 4,171,169Adjustments

Depreciation 13.1 164,431 60,837Provision against non-performing loans and advances 12.4 1,004,572 434,740Provision for diminution in the value of investments 11.3 242,713 7,344(Loss)/Gain on sale of fixed assets 27 103 (6,137)

1,411,819 496,784

5,499,266 4,667,953

(Increase) / decrease in operating assetsLendings to financial institutions 3,891,073 1,457,861Advances (19,439,022) (6,937,487)Other assets (1,240,432) (79,147)

(16,788,381) (5,558,773)

Increase / (decrease) in operating liabilitiesBills payable (837,895) 1,590,245Borrowings from financial institutions (239,618) 227,674Deposits and other accounts 7,061,608 18,573,756Other liabilities (excluding current taxation) 1,119,175 938,823

7,103,270 21,330,498

(4,185,845) 20,439,678Income tax paid (2,079,542) (1,366,003)

Net cash (used in) / inflow from operating activities (6,265,387) 19,073,675

CASH FLOW FROM INVESTING ACTIVITIES Net investments in available-for-sale securities 2,108,990 (21,304,318)Net investments in held-to-maturity securities 4,200,000 (1,100,000)Investment in subsidiary company – –Dividend received 655,845 33,212Investments in operating fixed assets (408,135) (712,489)Sale proceeds of operating fixed assets 9,174 12,425

Net cash inflow from/(used in) investing activities 6,565,874 (23,071,170)

CASH FLOW FROM FINANCING ACTIVITIESDividend paid (501,122) (4)

Decrease in cash and cash equivalents (200,635) (3,997,499)Cash and cash equivalents at beginning of the year 13,309,131 17,306,630

Cash and cash equivalents at end of the year 32 13,108,496 13,309,131


2008 2007

Rupees in ‘000

Note

4,204,3804,743,292




FIRASAT ALIDirector

83

ShareCapital

Sharepremium

StatutoryReserve

SpecialReserve

RevenueReserve

Un-appropriated

Profit

Rupees in ‘000


Balance as at December 31, 2006 3,005,000 1,533,590 240,361 1,500,000 1,836,616 10,666,5522,550,985

Profit after taxation – – – – 2,797,408– 2,797,408

Transfer to statutory reserve – – – (559,000) –– 559,000

Balance as at December 31, 2007 5,018,350 2,092,590 240,361 1,500,000 2,061,674 13,463,9602,550,985

Issue of bonus shares in the ratio of20 shares for every 100 shares held

1,003,670 – – – (1,003,670) ––

Profit after taxation – – – – 3,279,736– 3,279,736

Transfer to statutory reserve – – – (656,000) –– 656,000

Issue of bonus shares in the ratio of67 shares for every 100 shares held

2,013,350 – – – (2,013,350) ––

Cash dividend (Re 1 per share) – – – – (501,835)– (501,835)

Balance as at December 31, 2008 6,022,020 2,748,590 240,361 1,500,000 3,179,9052,550,985 16,241,861

Reserves

CONSOLIDATED STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED DECEMBER 31, 2008




FIRASAT ALIDirector

84

1. STATUS AND NATURE OF BUSINESS

1.1 The Group comprises of: - Holding company

Habib Metropolitan Bank Limited

- Subsidiary companiesHabib Metropolitan Trade Services LimitedHabib Metropolitan Financial Services Limited

The Group is engaged in providing Commercial Banking and brokerage services.

1.2 Habib Metropolitan Bank Limited (the Bank) was incorporated in Pakistan on August 3, 1992as a public limited company, under the Companies Ordinance, 1984 and is engaged in commercialbanking and related services. Its shares are listed on all stock exchanges in Pakistan. Theregistered office of the Bank is situated at Spencer’s Building, I.I Chundrigar Road, Karachi.The Bank operates 110 (2007: 100) branches including 4 (2007: 4) Islamic banking branchesin Pakistan. The Bank is a subsidiary of Habib Bank AG Zurich (the holding company) whichis incorporated in Switzerland.

1.3 Brief profile of the subsidiaries is as follows:

Name of company

Habib Metropolitan Trade Services Limited

Habib Metropolitan Financial Services Limited

2. BASIS OF PRESENTATION AND CONSOLIDATION

2.1 These consolidated financial statements have been prepared in conformity with the format offinancial statements prescribed by the State Bank of Pakistan (SBP) vide BSD Circular No. 04,dated 17 February 2006.

2.2 In accordance with the directives of the Federal Government regarding shifting of the bankingsystem to Islamic modes, the SBP has issued various circulars from time to time. Permissibleforms of trade-related modes of financing include purchase of goods by the Bank from theircustomers and immediate resale to them at appropriate mark-up in price on a deferred paymentbasis. The purchases and sales arising under these arrangements are not reflected in thesefinancial statements as such but are restricted to the amount of facility actually utilized and theappropriate portion of mark-up thereon. However, during the year the Islamic banking branchesof the Bank have adopted Islamic Financial Accounting Standard (IFAS) 1 "Murabaha" in respectof murabaha financing arrangements. This standard requires murabaha arrangements to beaccounted for as a purchase and sale transaction of the underlying goods, and the related profitbe recognised on a time proportionate basis over a period of murabaha transaction. The adoptionof the above standard has not resulted in a material impact on these consolidated financialstatements.

100

Percentage ofShareholding

965

NetProfit

2,760

NetAssets

Trade related services(under winding-up)

Nature of Business

Hong Kong

Country ofIncorporation

100 1,393 301,057 Brokerage company Pakistan

Rupees in ‘000

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2008

85

2.3 These consolidated financial statements comprise the financial statements of the Bank and itssubsidiary companies. The financial statements of the subsidiary companies have been preparedfor the same reporting year as the Bank using consistent accounting policies. The assets,liabilities, income and expenses of the subsidiary companies have been consolidated on a lineby line basis. Intra-group balances and transactions have been eliminated for the consolidationpurpose of consolidation.

3. STATEMENT OF COMPLIANCE

These consolidated financial statements have been prepared in accordance with approved accountingstandards as applicable in Pakistan. Approved accounting standards comprise of International FinancialReporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and IFASissued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the CompaniesOrdinance, 1984, the requirements of the Companies Ordinance, 1984, the Banking CompaniesOrdinance, 1962 and directives issued by the Securities and Exchange Commission of Pakistan(SECP) and the SBP. Wherever the requirements of the Companies Ordinance, 1984, the BankingCompanies Ordinance, 1962 or directives issued by the SECP and the SBP differ with the requirementsof IFRS / IFAS, the requirements of the Companies Ordinance, 1984, the Banking CompaniesOrdinance, 1962 or the requirements of the said directives shall prevail.

The SBP vide BSD Circular No. 10, dated 26 August 2002 has deferred the applicability of InternationalAccounting Standard (IAS) 39 "Financial Instruments: Recognition and Measurement" and IAS 40"Investment Property" for Banking companies till further instructions. Further, according to the notificationof SECP dated 28 April 2008, IFRS 7 "Financial Instruments: Disclosures" has not been madeapplicable for banks. Accordingly, the requirements of these standards have not been considered inthe preparation of these consolidated financial statements. However, investments have been classifiedand valued in accordance with the requirement of various circulars issued by SBP.

During the year, interpretations of accounting standards, namely IFRIC 11 "IFRS 2 - Group Reportingand Treasury Share Transactions", IFRIC 12 "Service Concession Arrangements" and IFRIC 14 "IAS19 - The Limit on Defined Benefit Asset Minimum Funding Requirements and their Interaction" becomeeffective. However, these interpretations do not affect the Group's consolidated financial statements.

4. BASIS OF MEASUREMENT

These consolidated financial statements have been prepared under the historical cost conventionexcept that certain investments are stated at market value and derivative financial instruments arecarried at fair value as disclosed in notes 5.3 and 5.6 respectively.

5. SIGNIFICANT ACCOUNTING POLICIES

5.1 Cash and cash equivalents

These include cash and balances with treasury and other banks less over drawn nostro andlocal bank accounts.

5.2 Repurchase/resale agreements

The Group enters into transactions of repos and reverse repos at contracted rates for a specifiedperiod of time. These are recorded as under:

110

The details of transactions with related parties during the year other than those which have beendisclosed elsewhere in these financial statements are as follows:

Balance outstanding at year end

Holding company of the Group (Habib Bank AG Zurich)Bank balances 1,015,486 1,275,738Management fee payable 112,170 82,601

Entities with common directorshipsAdvances 1,548,253 753,624Deposits 1,197,119 3,165,383Trade related contingent liabilities 1,256,265 1,769,635

Key Management PersonnelAdvances 11,409 16,828Deposits 7,536 15,384

Retirement benefit planDeposits 631,304 480,409

Transactions for the year

Holding company of the Group (Habib Bank AG Zurich)Mark-up/return/interest earned 66,391 146,176Management fee for technical and consultancy services 112,170 82,601

Entities with common directorshipsMark-up/return/interest earned 99,618 38,815Mark-up/return/interest expensed 283,036 439,097Commission/bank charges recovered 8,202 8,145Insurance premium paid 1,481 1,369Rent income 767 658

Key Management PersonnelMark-up/return/interest earned 774 709Mark-up/return/interest expensed 244 361Salaries, allowances, etc 169,848 55,881Directors’ fee 190 210

Retirement benefit planMark-up/return/interest expensed 17,591 28,003Contribution to defined benefit plan 28,142 –Contribution to defined contribution plan 50,290 39,700

The above transactions are carried at arm’s length basis other than advances to key managementpersonnel which are in accordance with their terms of employment.

41. CAPITAL ADEQUACY

41.1 The objectives of the Bank's capital management are to ensure that the Bank complies with theregulatory capital requirement and maintain healthy capital ratios in order to support its businessand maximise shareholders' value. The SBP through its BSD Circular No.19 dated 05 September2008 requires the minimum paid up capital (net of losses) for all banks to be raised to Rs. 23 billionby the year ending on 31 December 2013. The raise is to be achieved in a phased manner requiringRs. 5 billion paid up capital (net of losses) by the end of the financial year 2008. The paid up capitalof the Bank as of 31 December 2008 stands at Rs. 6.02 billion. In addition to the above paid upcapital requirement, the banks are also required to maintain a Capital Adequacy Ratio (CAR) of9% of the risk weighted exposure. The Bank's CAR as at 31 December 2008 was 10.62% of itsrisk weighted exposure.

2008 2007Rupees in ‘000

111

41.2 Regulatory Capital Base

Tier I Capital

Share Capital 6,022,020 5,018,350Balance in share premium account 2,550,985 2,550,985Reserves 4,488,951 3,832,951Un-appropriated profits 3,179,905 2,059,958Less: Deficit on account of revaluation of

available-for-sale investmets (1,761,872) –

Total Tier I Capital 14,479,989 13,462,244

Tier II CapitalGeneral provision subject to 1.25% of total risk

weighted assets 1,046,320 516,274

Total Tier II Capital 1,046,320 516,274

Eligible Tier III Capital – –

Total regulatory capital base 15,526,309 13,978,518

2008 2007Rupees in ‘000

2008

Capital Requirements Risk Weighted Assets

Rupees in ‘000

Credit risk

––66,899

342,3578,550,953

452,61312,93916,26559,54723,840

906,8811,310,943

79,113

Cash and cash equivalentsSovereignPublic Sector EntitiesBanksCorporateRetailMortgage financePast due loansEquityClaims on fixed assetsAll other fixed assetsOBS - Non market relatedOBS - Market related

2007

––15,768

364,7756,522,463

121,26211,29932,472

219,630–

772,7361,107,913

44,603

Market risk

18,06712,220–

Interest rate riskForeign exchange riskEquity position risk

–24,111–

Operational risk

2008

––

743,3213,803,968

95,010,5905,029,028

143,772180,722661,629264,892

10,076,46014,566,035

879,029

2007

––

197,1024,559,687

81,530,7911,515,769

141,235405,894

2,745,381–

9,659,19713,848,910

557,541

225,838152,752–

–301,385–

Capital adequacy ratioTotal eligible regulatory capital heldTotal risk weighted assets

CAR

15,526,309146,146,803

10.62%

13,978,518123,881,104

11.28%

41.3 The risk weighted assets to capital ratio, calculated in accordance with the SBP’s guidelines oncapital adequacy is as follows:

1,152,701 673,457

13,005,338 9,910,489

14,408,767 8,418,212

146,146,803 123,881,104

112

42. RISK MANAGEMENT

Risk management aspects are embedded in the Bank’s strategy, organization structure and processes.The Bank has adopted a cohesive risk management structure for credit, operations, liquidity and marketrisk to strengthen the process and system from the foundation as controls are more effective and valuablewhen built into the process. Effective risk management is considered essential in the preservation of theassets and long-term profitability of the Bank. Clear guidelines and limits, which are under regular review,are backed up by a system of internal controls and independent audit inspections. Internal reporting / MISare additional tools for measuring and controlling risks. Separation of duties is also embedded in theBank’s system and organization.

42.1 Credit risk

Credit risk arises from the possibility that the counterparty in a transaction may default. It arisesprincipally in relation to the lending and trade finance business carried out by the Bank.

As per Basel II methodology the gross credit risk weighted exposure incorporating relevent creditconversion factor is Rs. 131 million as depicted in note 41.

The Bank’s strategy is to minimize credit risk through a strong pre-disbursement credit analysis,approval and risk measurement process added with product, geography and customer diversification.The Bank, as its strategic preference, extends trade and working capital financing, so as to keepthe major portion of exposure (funded and non-funded) on a short-term, self-liquidating basis. Majorportion of the Bank credit portfolio is priced on flexible basis with pricing reviewed on periodic basis.

The Bank’s credit policy / instructions defines the credit extension criteria, the credit approval andmonitoring process, the loan classification system and provisioning policy.

The Bank continually assesses and monitors credit exposures. The Bank follows both objective andsubjective criteria of SBP regarding loans classification. The subjective assessment process isbased on management's judgement with respect to the borrower's character, activity, cash flow,capital structure, security, quality of management and delinquency.

42.1.1 Segmental Information

Segment by class of business

Private 109,232,970 98.95 117,552,015 91.75 36,566,360 87.57Public /Government 1,158,394 1.05 10,575,982 8.25 5,187,456 12.43

110,391,364 100.00 128,127,997 100.00 41,753,816 100.00

Segment by sector

2008

Advances

Rs. in ‘000 Percent

Contingencies andCommitmentsDeposits

Rs. in ‘000 Percent Rs. in ‘000 Percent

2008

Advances

Rs. in ‘000 Percent

Contingencies andCommitmentsDeposits

Rs. in ‘000 Percent Rs. in ‘000 Percent

Textile 59,644,569 54.03 4,735,420 3.70 6,759,168 16.19Exports/Imports 7,962,200 7.21 3,167,176 2.47 10,769,876 25.79Chemical and pharmaceuticals 4,023,955 3.65 1,874,131 1.46 2,400,278 5.75Wholesale and retail trade 3,284,494 2.98 2,898,815 2.26 674,443 1.62Electronics and electrical appliances 2,527,105 2.29 725,492 0.57 986,029 2.36Services 2,159,258 1.96 5,406,426 4.21 350,906 0.84Automobile and transportation equipment 1,898,547 1.72 1,806,747 1.41 1,267,733 3.04Power (electricity), gas, water and sanitary 1,889,857 1.71 2,855,833 2.23 6,314,685 15.12Transport, storage and communication 1,845,685 1.67 3,383,293 2.64 259,219 0.62Construction 1,566,564 1.42 1,208,267 0.94 363,925 0.87Individuals 1,523,088 1.38 43,995,105 34.34 23,859 0.06Cement 1,413,280 1.28 28,467 0.02 669,207 1.60Financial 1,369,679 1.24 3,045,144 2.38 309,094 0.74Footwear and leather garments 1,369,097 1.24 1,464,992 1.14 57,918 0.14Sugar 751,709 0.68 696,532 0.54 107,232 0.26Insurance 104,668 0.10 1,612,247 1.26 15,662 0.04Mining and quarrying 39,019 0.04 39,790 0.03 8 0.00Agriculture, forestry, hunting and fishing 38,196 0.03 182,286 0.14 482,353 1.16Others 16,980,394 15.37 49,001,834 38.26 9,942,167 23.80

110,391,364 100 128,127,997 100 41,753,816 100

113

42.1.2 Credit risk - General disclosures Basel II sepcific

The Bank uses the ‘Standardised Approach’ in calculation of credit risk and capital requirements.

Credit Risk: Disclosures for portfolio subject to the standardised approach & supervisoryrisk weights in the IRB approach – Basel II specific.

The Bank uses reputable and SBP approved rating agencies for deriving risk weight to specificcredit exposures. These are applied consistently across the Bank credit portfolio for both on -balance sheet and off - balance sheet exposures. The methodology applied for using ExternalCredit Assessment Institutions (ECAI's) inclusive of the alignment of alpha numerical scale of eachagency used with risk bucket is as per SBP Basel II guidelines as is given below:

ExposuresCorporateBanksSovereignsSME’sSecuritisationOthers

Types of Exposures and ECAI’s usedJCR-VISPPPP

N.AP

PACRAPPPP

N.AP

S & PPPPP

N.AP

FitchPPPP

N.AP

2008

Profitbefore

taxation

Totalassets

employed

Net assetsemployed

Contingencieand

Commitments

Details of non-performing advances and specific provisions by class of business segment

438,30679,68458,99531,934

625,83630,752

2,4901,0421,000

477,560

1,747,599

384,98258,45258,99531,934

172,88430,752

2,4901,0421,000

341,254

1,083,785

372,52739,76164,624

64831,339

––

40,207–

255,141

804,247

346,84737,57264,624

64831,339

––

40,207–

179,744

700,981

TextileIndividualsAgriculture, forestry, hunting and fishingAutomobile and transportation equipmentElectronics and electrical appliancesFootwear and leather garmentsWholesale and retail tradeChemical and pharmaceuticalsExports/ImportsOthers

Pakistan

Total assets employed include intra group items of Rs. 2,265 million.

Details of non-performing advances and specific provisions by sector

Geographical segment anlaysis 2008

Rupees in ‘0004,743,292 182,114,624 15,096,526 41,753,762

1,747,599–

1,747,599

1,083,785–

1,083,785

804,247–

804,247

700,981–

700,981

PrivatePublic/Government

ClassifiedAdvances

Specificprovision

heldClassifiedAdvances

Specificprovision

held

2008 2007

Rupees in ‘000

ClassifiedAdvances

Specificprovision

heldClassifiedAdvances

Specificprovision

held

2008 2007

Rupees in ‘000

114

2,815,766

51,508,089

2,044,883400,000

1,118,034––

3,204,670633,438

40,659–

2,159,270

–7,373,311

–2,962,803

675,96947,031–

7,048,376410,776

18,320132,775

40,933

574,570

58,039264,892

9,467,94699,195,793

192,196,343

–

–

––––

556,924(556,924)

–––

–

5,822,956(5,822,956)2,700,514

98,176–

–343,005(343,005)

––––

–

–––

(2,798,690)

–

Cash and cash equivalentsClaims on Government of Pakistan and

SBP, denominated in PKRForeign currency claims on SBP arising out

of statutory obligations of banks in PakistanClaims on Public Sector Entities in PakistanClaims on Public Sector Entities in PakistanClaims on Public Sector Entities in PakistanClaims on banksClaims on banksClaims on banksClaims on banksClaims on banksClaims, denominated in foreigh currency, on

banks with original maturity of 3 months or lessClaims on banks with original maturity of 3 months

or less denominated in PKRand funded in PKR

Claims on Corporates (Excluding equity exposures)Claims on Corporates (Excluding equity exposures)Claims on Corporates (Excluding equity exposures)Claims on Corporates (Excluding equity exposures)Claims categorized as retail portfolioClaims categorized as retail portfolioClaims fully secured by residential propertyPast due loan (not secured against residential)Past due loan (not secured against residential)Past due loan (not secured against residential)Listed Equity investments and regulatory capital

instruments issued by other banks (other thandeducted from capital) held in the banking book.

Unlisted equity investments (other than that deductedfrom capital) held in banking book

Claims on all fixed assets under operating leaseAll other assetsUnrated

2,815,766

51,508,089

2,044,883400,000

1,118,034–

556,9242,647,746

633,43840,659–

2,159,270

5,822,9561,550,3552,700,5143,060,979

675,96947,031

343,0056,705,371

410,77618,320

132,77540,933

574,570

58,039264,892

9,467,94696,397,103

192,196,343

0%

0%

0%20%50%

100%0%

20%50%

100%150%

20%

0%20%0%

20%50%

100%0%

75%35%

150%100%50%

12,34,5

12,34,56

1,2,3

12

3,4

PRO L.TPRO M.TPRO M.T

RatingCategory

#

RatingRisk

Weight

AmountOutstanding

DeductionCRM

NetAmount

2008

Exposures

Credit Exposures subject to Standardised Approach

Credit risk: Disclosures with respect to credit risk mitigation for Standardised and IRB Approaches – Basel II specific

The forms of collateral that are deemed to eligible collateral under the ‘Simple Approach’ to Credit RiskMitigation (CRM) as per SBP guidelines are used by the Group and primarily includes cash, governmentand rated debt securities.

The Bank applies SBP specified haircut to collateral for Basel II Credit Risk Mitigation. Collateral Managementis embedded in the Bank’s risk taking and risk management policy and procedures. A standard creditgranting procedure exists which has been well-disseminated down the line, ensuring proper pre-sanctionevaluation, adequacy of security, pre-examination of charge/control documents and monitoring of eachexposure on an ongoing basis.

Collateral information is recorded diligently in the Bank’s main processing systems by type of collateral,amount of collateral against relevant credit exposures. A cohesive accounting / risk management systemfacilitates effective collateral management for Basel II reporting. For details of each separately disclosedcredit risk portfolio under the standardised approach and related eligible financial collateral, refer the tableabove.

115

Equity position risk in the banking book-Basel II specific

Investment in equities is governed by the Board of Directors’ approved investment policies which restrictsthe equity portfolio as well as individual investments to avoid risk of concentration and excessive specificscrip holding. The Bank's investment in equity is conservative and is driven by yield optimization andportfolio diversification objectives. As such the Bank does not conduct ‘trading’ activities in equities.

The Bank books the equity at cost and has adopt the ‘mark to market’ approach for equity valuationas per SBP guidelines which for Basel – II purposes prescribe 100% risk weight for listed equity and150% risk weight for unlisted equity (refer note 11 and annexure I for investment in listed and unlistedshares).

42.3 Market risk

Market risk is the possibility that fluctuation in interest rates, foreign exchange or stock prices will changethe market value of financial product(s) leading to a loss.

The Board of Directors oversees the Bank’s strategy for market risk exposures. ALCO which comprisesof senior management, oversees the balance sheet of the Bank and performs oversight function toensure sound asset quality, liquidity and pricing. The investment policy, amongst other aspects, coversthe Bank asset allocation guidelines inclusive of equity investments. While market risk limits are in placeand are monitored effectively, the Bank has also formalized liquidity and market risk managementpolicies which contain action plans to strengthen the market risk management system.

42.4 Foreign exchange risk

Foreign Exchange Risk is the probability of loss resulting from adverse movement is exchange rates.

The Bank’s business model for foreign exchange risk is to serve trading activities of its clients in anefficient and cost effective manner. The Bank is not in the business of actively trading and marketmaking activities. A conservative risk approach and the Bank’s business strategy to work with exportoriented clients gives the ability to meet its foreign exchange needs generally and frequently provideforeign exchange to the inter-bank market.

Pakistan Rupee

United States Dollar

Euro

Great Britain Pound

Asian Currency unit

Japanes Yen

Arab Emirates Dirham

Canadian Dollar

Australian Dollar

Saudi Riyal

Other Currencies

2008

Assets LiabilitiesOff-balancesheet items

Net foreigncurrencyexposure

(Rupees in ‘000)

162,415,154

15,893,994

2,368,099

1,077,179

216,075

72,008

51,781

4,551

4,091

1,905

9,787

182,114,624

170,586,958

9,450,305

938,481

1,077,853

56,937

3,984

106

–

–

–

–

182,114,624

12,193,446

(10,695,455)

(1,401,238)

(1,716)

–

(60,521)

(41,909)

–

–

1,905

5,488

–

4,021,642

(4,251,766)

28,380

(2,390)

159,138

7,503

9,766

4,551

4,091

3,810

15,275

–

116

42.5

Inte

rest

rat

e ri

sk

Inte

rest

rat

e ris

k is

the

ris

k th

at t

he v

alue

of

the

finan

cial

inst

rum

ent

will

flu

ctua

te d

ue t

o ch

ange

s in

the

mar

ket

inte

rest

rat

es.

The

Ban

k’s

inte

rest

rate

exp

osur

e is

low

due

to th

e sh

ort-

term

nat

ure

of th

e m

ajor

ity o

f bus

ines

s tr

ansa

ctio

ns. I

nter

est r

ate

risk

is a

lso

cont

rolle

d th

roug

h fle

xibl

e cr

edit

pric

ing

mec

hani

sm a

nd v

aria

ble

depo

sit r

ates

. Opt

imiz

atio

n of

yie

ld is

ach

ieve

d th

roug

h th

e B

ank’

s in

vest

men

t str

ateg

y w

hich

aim

s on

atta

inin

g a

bala

nce

betw

een

yiel

d an

d liq

uidi

ty u

nder

the

stra

tegi

c gu

idan

ce o

f ALC

O. T

he a

dvan

ces

and

depo

sits

of t

he B

ank

are

repr

iced

on

a pe

riodi

c ba

sis

base

d on

inte

rest

rat

es s

cena

rio.

On

bala

nce

shee

t fin

anci

al in

stru

men

tsAs

sets

0.90

%5.

00%

– 9

.00%

14.0

0%8.

00%

– 1

8.52

%3.

50%

– 2

4.50

%

7.50

% –

14.

00%

0.50

% –

19.

50%

Eff

ecti

veY

ield

/In

tere

stR

ate

%

Exp

ose

d t

o Y

ield

/Inte

rest

ris

k

2008

Cas

h an

d ba

lanc

es w

ith tr

easu

ry b

anks

Bal

ance

s w

ith o

ther

ban

ksLe

ndin

gs to

fina

ncia

l ins

titut

ions

Inve

stm

ents

Adv

ance

sO

ther

ass

ets

Liab

ilitie

s

Bill

s pa

yabl

eB

orro

win

gsD

epos

its a

nd o

ther

acc

ount

sO

ther

liab

ilitie

s

On

-bal

ance

sh

eet

gap

Off

-bal

ance

sh

eet

fin

anci

al in

stru

men

ts

For

war

d le

ndin

gF

orw

ard

borr

owin

g

Off

-bal

ance

sh

eet

gap

To

tal Y

ield

/Inte

rest

Ris

k S

ensi

tivi

ty g

ap

Cu

mu

lati

ve Y

ield

/Inte

rest

Ris

k S

ensi

tivi

ty g

ap

Ru

pee

s in

‘000

11,4

01,3

842,

974,

237

98,1

7653

,335

,855

108,

261,

259

3,36

9,13

5

179,

440,

046

2,37

2,14

630

,435

,543

128,

127,

997

6,08

2,41

2

167,

018,

098

12,4

21,9

48

– – –

To

tal

1,51

5,92

31,

537,

310

98,1

7614

,672

,758

10,4

79,7

18–

28,3

03,8

85

–13

,961

,570

27,5

92,0

49–

41,5

53,6

19

(13,

249,

734)

– – –

(13,

249,

734)

(13,

249,

734)

Up

to 1

mo

nth

– – –14

,919

,676

34,3

57,1

37–

49,2

76,8

13

– –22

,353

,612

–

22,3

53,6

12

26,9

23,2

01

– – –

26,9

23,2

01

13,6

73,4

67

Ove

r 1

mo

nth

to

3 m

on

ths

– – –4,

898,

611

25,1

26,2

71–

30,0

24,8

82

–13

,596

,991

12,8

65,3

31–

26,4

62,3

22

3,56

2,56

0

– – –

3,56

2,56

0

17,2

36,0

27

ove

r 3

mo

nth

s to

6 m

on

ths

– – –24

1,52

025

,042

,765

–

25,2

84,2

85

–2,

185,

154

16,7

31,4

21–

18,9

16,5

75

6,36

7,71

0

– – –

6,36

7,71

0

23,6

03,7

37

ove

r 6

mo

nth

sto

1 y

ear

– – –58

0,61

03,

484,

922

–

4,06

5,53

2

–69

1,82

85,

064,

899

–

5,75

6,72

7

(1,6

91,1

95)

– – –

(1,6

91,1

95)

21,9

12,5

42

Ove

r 1

year

to

2 ye

ars

– – –6,

107,

249

3,17

1,19

8–

9,27

8,44

7

– –2,

542,

846

–

2,54

2,84

6

6,73

5,60

1

– – –

6,73

5,60

1

28,6

48,1

43

Ove

r 2

year

s to

3 ye

ars

– – –1,

748,

880

2,12

4,87

7–

3,87

3,75

7

– –3,

066,

410

–

3,06

6,41

0

807,

347

– – – 807,

347

29,4

55,4

90

Ove

r 3

year

s to

5 ye

ars

– – –3,

587,

603

1,99

5,85

6–

5,58

3,45

9

– –2,

413,

732

–

2,41

3,73

2

3,16

9,72

7

– – –

3,16

9,72

7

32,6

25,2

17

Ove

r 5

year

s to

10 y

ears

– – – 704,

490

730,

916

–

1,43

5,40

6

– –2,

413,

732

–

2,41

3,73

2

(978

,326

)

– – –

(978

,326

)

31,6

46,8

91

Ab

ove

10 y

ears

9,88

5,46

11,

436,

927

–5,

874,

458

1,74

7,59

93,

369,

135

22,3

13,5

80

2,37

2,14

6–

33,0

83,9

656,

082,

412

41,5

38,5

23

(19,

224,

943)

– – –

(19,

224,

943)

12,4

21,9

48

No

n-i

nte

rest

bea

rin

gfi

nan

cial

insr

um

ents

117

On

bala

nce

shee

t fin

anci

al in

stru

men

tsAs

sets

4.24

%3.

75%

to 9

.00%

9.25

% to

10.

60%

8.00

% to

14.

00%

3.50

% to

20.

00%

2.00

% to

10.

00%

1.50

% to

10.

80%

10,2

01,5

453,

691,

183

3,98

9,24

961

,735

,716

89,8

26,8

062,

128,

703

171,

573,

202

3,21

0,04

129

,991

,633

121,

066,

389

4,17

9,90

5

158,

447,

968

13,1

25,2

34

– – –

542,

500

2,17

5,45

22,

701,

749

3,09

4,00

05,

773,

840

–

14,2

87,5

41

–13

,639

,031

11,1

31,8

28–

24,7

70,8

59

(10,

483,

318)

– – –

(10,

483,

318)

(10,

483,

318)

– –1,

250,

000

12,6

62,3

6726

,344

,138

–

40,2

56,5

05

–6,

098,

450

21,5

41,6

96–

27,6

40,1

46

12,6

16,3

59

– – –

12,6

16,3

59

2,13

3,04

1

– – 37,5

004,

182,

693

19,3

97,1

84–

23,6

17,3

77

–7,

335,

010

19,2

65,7

66–

26,6

00,7

76

(2,9

83,3

99)

– – –

(2,9

83,3

99)

(850

,358

)

– – –22

,990

,516

30,9

98,0

44–

53,9

88,5

60

–29

8,09

619

,546

,060

–

19,8

44,1

56

34,1

44,4

04

– – –

34,1

44,4

04

33,2

94,0

46

– – –1,

658,

699

2,60

7,48

1–

4,26

6,18

0

–52

8,50

52,

106,

436

–

2,63

4,94

1

1,63

1,23

9

– – –

1,63

1,23

9

34,9

25,2

85

– – –16

6,49

12,

607,

481

–

2,77

3,97

2

–35

5,84

63,

763,

172

–

4,11

9,01

8

(1,3

45,0

46)

– – –

(1,3

45,0

46)

33,5

80,2

39

– – –7,

268,

672

– –

7,26

8,67

2

– 468,

178

3,85

7,93

5–

4,32

6,11

3

2,94

2,55

9

– – –

2,94

2,55

9

36,5

22,7

98

– – –2,

588,

336

1,01

0,25

1–

3,59

8,58

7

– 684,

920

2,58

8,05

1–

3,27

2,97

1

325,

616

– – – 325,

616

36,8

48,4

14

– – – – 284,

140

– 284,

140

– –2,

286,

901

–

2,28

6,90

1

(2,0

02,7

61)

– – –

(2,0

02,7

61)

34,8

45,6

53

9,65

9,04

51,

515,

731

–7,

123,

942

804,

247

2,12

8,70

3

21,2

31,6

68

3,21

0,04

158

3,59

734

,978

,544

4,17

9,90

5

42,9

52,0

87

(21,

720,

419)

– – –

(21,

720,

419)

13,1

25,2

34

Eff

ecti

veY

ield

/In

tere

stR

ate

%T

ota

lU

pto

1m

on

th

Ove

r 1

mo

nth

to 3

mo

nth

s

ove

r 3

mo

nth

sto

6 m

on

ths

ove

r 6

mo

nth

sto

1 y

ear

Ove

r 1

year

to 2

yea

rs

Ove

r 2

year

sto

3 y

ears

Ove

r 3

year

sto

5 y

ears

Ove

r 5

year

sto

10

year

sA

bo

ve10

yea

rs

No

n-i

nte

rest

bea

rin

gfi

nan

cial

insr

um

ents

Exp

ose

d t

o Y

ield

/Inte

rest

ris

k

2007

Cas

h an

d ba

lanc

es w

ith tr

easu

ry b

anks

Bal

ance

s w

ith o

ther

ban

ksLe

ndin

gs to

fina

ncia

l ins

titut

ions

Inve

stm

ents

Adv

ance

sO

ther

ass

ets

Liab

ilitie

s

Bill

s pa

yabl

eB

orro

win

gsD

epos

its a

nd o

ther

acc

ount

sO

ther

liab

ilitie

s

On

-bal

ance

sh

eet

gap

Off

-bal

ance

sh

eet

fin

anci

al in

stru

men

ts

For

war

d le

ndin

gF

orw

ard

borr

owin

g

Off

-bal

ance

sh

eet

gap

To

tal Y

ield

/Inte

rest

Ris

k S

ensi

tivi

ty g

ap

Cu

mu

lati

ve Y

ield

/Inte

rest

Ris

k S

ensi

tivi

ty g

ap

Ru

pee

s in

‘000

118

42.6

Liq

uid

ity

risk

Liqu

idity

ris

k is

the

risk

that

the

Ban

k w

ill n

ot b

e ab

le to

rai

se fu

nds

to m

eet i

ts c

omm

itmen

ts. A

LCO

man

ages

the

liqui

dity

pos

ition

on

a co

ntin

uous

basi

s.

The

Ban

k’s

liqui

dity

mod

el is

bas

ed o

n “s

elf-

relia

nce”

with

an

exte

nsiv

e br

anch

net

wor

k to

div

ersi

fy t

he B

ank

depo

sit

base

. T

he B

ank’

s liq

uidi

typr

ofile

gen

eral

ly c

ompr

ises

of s

hort

-ter

m, s

ecur

ed a

sset

s, in

line

with

the

Ban

k’s

cred

it st

rate

gy.

2008

Cas

h an

d ba

lanc

es w

ith tr

easu

ry b

anks

Bal

ance

s w

ith o

ther

ban

ks

Lend

ings

to fi

nanc

ial i

nstit

utio

ns

Inve

stm

ents

Adv

ance

s

Ope

ratin

g fix

ed a

sset

s

Def

erre

d T

axes

Oth

er a

sset

s

Liab

ilitie

s

Bill

s pa

yabl

e

Bor

row

ings

Dep

osits

and

oth

er a

ccou

nts

Oth

er li

abili

ties

Net

ass

ets

/ (lia

bili

ties

)

Ru

pee

s in

‘000

Asse

ts

Mat

uriti

es o

f ass

ets

and

liabi

litie

s

Sha

re c

apita

l

Res

erve

s

Una

ppro

pria

ted

prof

it

Sur

plus

on

reva

luat

ion

of a

sset

s

Ove

r 1

mo

nth

to 3

mo

nth

s

– – –

19,0

89,8

11

34,3

57,1

37

41,1

69

27,0

46

–

53,5

15,1

63

– –

29,0

03,7

52

–

29,0

03,7

52

24,5

11,4

11

Up

to 1

mo

nth

11,4

01,3

84

2,97

4,23

7

98,1

76

16,6

72,7

58

10,4

79,7

18

13,7

23

104,

270

3,18

6,86

1

44,9

31,1

27

2,37

2,14

6

13,9

61,5

70

27,5

58,6

68

4,27

1,43

0

48,1

63,8

14

(3,2

32,6

87)

To

tal

11,4

01,3

84

2,97

4,23

7

98,1

76

53,3

35,8

55

108,

261,

259

1,52

8,91

3

1,14

5,66

5

3,36

9,13

5

182,

114,

624

2,37

2,14

6

30,4

35,5

43

128,

127,

997

6,08

2,41

2

167,

018,

098

15,0

96,5

26

6,02

2,02

0

7,03

9,93

6

3,17

9,90

5

(1,1

45,3

35)

15,0

96,5

26

ove

r 6

mo

nth

sto

1 y

ear

– – –

241,

520

26,7

90,3

64

164,

676

248,

437

123,

807

27,5

68,8

04

–

2,18

5,15

4

21,6

97,4

07

–

23,8

82,5

61

3,68

6,24

3

Ove

r 1

year

to 2

yea

rs

– – –

580,

610

3,48

4,92

2

329,

352

261,

096

–

4,65

5,98

0

–

691,

828

7,69

5,81

0

737,

499

9,12

5,13

7

(4,4

69,1

57)

Ove

r 2

year

sto

3 y

ears

– – –

6,10

7,24

9

3,17

1,19

8

487,

983

460,

864

–

10,2

27,2

94

– –

5,06

6,27

0

–

5,06

6,27

0

5,16

1,02

4

Ove

r 3

year

sto

5 y

ears

– – –

1,74

8,88

0

2,12

4,87

7

333,

422

– –

4,20

7,17

9

– –

4,37

9,02

0

–

4,37

9,02

0

(171

,841

)

Ove

r 5

year

sto

10

year

s

– – –

3,58

7,60

3

1,99

5,85

6

– – 9,37

5

5,59

2,83

4

– –

4,89

5,01

7

–

4,89

5,01

7

697,

817

Ove

r10

yea

rs

– – –

408,

813

730,

916

– – 49,0

92

1,18

8,82

1

– –

4,89

5,18

2

229,

023

5,12

4,20

5

(3,9

35,3

84)

ove

r 3

mo

nth

sto

6 m

on

ths

– – –

4,89

8,61

1

25,1

26,2

71

158,

588

43,9

52

–

30,2

27,4

22

–

13,5

96,9

91

22,9

36,8

71

844,

460

37,3

78,3

22

(7,1

50,9

00)

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Net

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120

42.7 Operational risk

The Bank operates in a controlled manner and operations risk is generally managed effectively.With the evolution of operations risk management into a separate distinct discipline, the Bank’sstrategy is to further strengthen the risk management system along new industry standards.

The Bank’s operations risk management strategy takes guidance from Basel – II, Committee ofSponsoring Organization of Treadway Commission (COSO) publications, the SBP guidelines andstandard industry practices. The operational risk management manual addresses enterprise widerisk drivers inclusive of technology infrastructure, software, hardware and I.T security.

While broadening risk awareness and assuring regulatory compliance, internal audit department ofthe Bank is an important pillar of the Bank’s risk management and controls infrastructure, performingcontinuous reviews to improve the quality of the Bank’s internal control environment, ensuring aneffective balance in safety and performance of processes and adding value towards the bank’s riskmitigation endeavours.

The Bank’s Business Continuity Plan includes risk management strategies to mitigate inherent riskand prevent interruption of mission critical services caused by disaster event. The Bank’s operationalrisk management infrastructure has been further strengthened through the establishment of aseparate operational and risk control unit.

42.8 Operational risk – Disclosures Basel II specific

The Bank uses Basic Indicator Approach (BIA) for regulatory capital at risk calculation for operationalrisk. Under BIA the capital charge for operational risk is a fixed percentage of average positiveannual gross income of the bank over the past three years. Figures of capital charge of operationrisk for December 2008 was Rs. 1,152,701 thousand (2007: Rs. 673,457 thousand).

43. ISLAMIC BANKING BUSINESS

43.1 The Bank is operating 4 (2007: 4) Islamic banking branches in Pakistan. The balance sheet andProfit and Loss Account of these branches as at December 31, 2008 and for the year are as follows:

43.1.1 BALANCE SHEETAs at December 31, 2008

ASSETSCash and balances with treasury banks 986,565 551,062Balances with and due from financial institutions 478 800,632Investments 1,429,020 432,500Financing and receivables

- Murabaha 2,449,851 1,842,382- Ijara 1,804,204 1,820,897- Diminishing Musharaka 1,184,840 1,033,550

Due from head office 198,271 –Other assets 192,465 173,076

TOTAL ASSETS 8,245,694 6,654,099

LIABILITIESBills payable 33,231 61,806Deposits and other accounts

- Current accounts 434,020 344,106- Saving accounts 847,305 1,261,557- Term deposits 2,527,470 1,691,342- Deposits from financial institutions - remunerative 2,781,327 1,824,198- Deposits from financial institutions - non-remunerative 17,423 30

Due to head office – 393,037Other liabilities 796,701 538,788

TOTAL LIABILITIES 7,437,477 6,114,864

NET ASSETS 808,217 539,235

REPRESENTED BY:Islamic banking fund 601,977 401,550Unappropriated profit 217,220 137,685

819,197 539,235Deficit on revaluation of assets (10,980) –

808,217 539,235

2008 2007Rupees in ‘000

121

Profit / return on financing and placements earned 682,388 444,210Profit / return on deposits and other dues expensed (455,143) (276,081)

Net spread earned 227,245 168,129

Provision against non performing financing 5,401 –Provision for diminution in the value of investments – –Provision for consumer financing ijarah – 308Bad debts written off directly – –

(5,401) (308)

Net spread after provisions 221,844 167,821

OTHER INCOMEFee, commission and brokerage income 12,201 11,334Dividend income 20,470 –Income from dealing in foreign currencies 14,670 1,284Gain on sale/redemption of securities – –Unrealized gain/(loss) on revaluation of investments classified as held-for-trading – –Other income 13,526 8,299

Total other income 60,867 20,917

282,711 188,738OTHER EXPENSESAdministrative expenses 65,491 51,053Other provisions / write offs – –Other charges – –

(65,491) (51,053)Extra ordinary / unusual items – –

PROFIT BEFORE TAXATION 217,220 137,685

PROFIT AND LOSS ACCOUNTFor the year ended 31 December 2008

2008 2007

43.2 Remuneration to Shariah Advisor/Board 1,045 1,086

43.3 Charity Fund

Opening balance 43 33Additions during the year 1 69Payments/utilizaion during the year (44) (59)

Closing balance – 43

44. GENERAL

44.1 Captions, as prescribed by BSD Circular No. 04, dated February 17, 2006 issued by the SBP, inrespect of which there are no amounts have not been reproduced in these financial statements,except for the captions of the balance sheet and profit and loss account.

44.2 Figures have been rounded off to the nearest thousand rupees.

44.3 Subsequent to the year end the Board of Directors resolved to issue bonus shares of Rs. 10/- eachin the ratio of 25 ordinary shares for every 100 ordinary shares held. Accordingly, the Board approvedtransfer of Rs.1,505,505 thousand from unappropriated profit to reserve for issue of bonus shares.

45. DATE OF AUTHORIZATION FOR ISSUE

These financial statements were authorized for issue on March 2, 2009 by the Board of Directors of the Bank.




FIRASAT ALIDirector

Rupees in ‘00043.1.2

122

ANNEXURE I (REFERRED NOTE 11.4)DETAILS OF INVESTMENTS AS AT DECEMBER 31, 2008

1. MARKET TREASURY BILLS

These securities have maturity period of 1 year, with yield ranging between 9.75% to 13.85 % (2007:9% to 9.4%) per annum.

2. PAKISTAN INVESTMENT BONDS

These securities have maturity period of 3 to 10 years with interest rates ranging between 8% to 14%(2007: 8% to 14%) per annum. These include securities having book value of Rs. 158,500 thousand(2007: Rs. 158,500 thousand) pledged with the SBP and National Bank of Pakistan as security forTT discounting facility.

3. FULLY PAID-UP ORDINARY SHARES - LISTED

Adamjee InsuranceCompany Limited

Allied Bank LimitedArif Habib Bank LimitedArif Habib LimitedArif Habib Securities

LimitedAskari Bank LimitedAttock Refinery LimitedBank Alfalah LimitedBank Al-Habib LimitedBank Islami Pakistan

LimitedBosicor Pakistan LimitedCrescent Steel and Allied

Products LimitedD. G. Khan Cement

Company LimitedD. S. Industries LimitedDewan Cement LimitedEngro Chemicals Pakistan

LimitedFauji Cement Company

LimitedFauji Fertilizer Bin Qasim

LimitedFauji Fertilizer Company

LimitedFaysal Bank LimitedHabib Bank LimitedJahangir Siddiqui &

Company LimitedJaved Omer Vohra and

Company LimitedJS Bank Limited

5,000

119

20813,653

201

16130,200

54

416

5

9996

19,703

11

13

101,371

22

65

1,155

65

–

––––

–––

84,000–

––

–

–––

–

–

95,461

–––

–

–

50

––

2137

–––

13,0201

––

–

10–

197

–

–

10,055

––

1

12

1

–

––––

–––

8,400–

––

–

–––

–

–

9,546

–––

–

–

509

––18

574

–––

3,238–

––

–

15–

1,901

–

–

5,953

––

3

10

–

–

––––

–––

6,485–

––

–

–––

–

–

11,336

–––

–

–

949

––

16617

–––

4,370–

––

–

13–

2,042

–

–

10,233

––

4

13

–

–

––––

–––

3,646–

––

–

–––

–

–

9,682

–––

–

–

2008 2007 2008 2007 2008 2007 2008 2007

No. of sharesof Rs. 10/- each Paid up value Market value Cost

Rupees in ‘000

123

2008 2007 2008 2007 2008 2007 2008 2007

No. of sharesof Rs. 10/- each Paid up value Market value Cost

Rupees in ‘000

JS Investments LimitedLucky Cement LimitedNational Bank of PakistanNetsol Technologies

LimitedNIB Bank LimitedNishat (Chunian) LimitedNishat Mills LimitedOil and Gas Development

Corporation LimitedPace (Pakistan) LimitedPak Elektron LimitedPakistan Oil Fields LimitedPakistan Petroleum LimitedPakistan Reinsurance

Company LimitedPakistan State Oil

Company LimitedPakistan Telecomm-

unication CompanyLimited

Pervez Ahmed SecuritiesLimited

PICIC Growth FundPioneer Cement LimitedSitara Peroxide LimitedSoneri Bank LimitedSui Southern Gas

Company LimitedThe Bank of PunjabThe Hub Power Company

LimitedTRG Pakistan LimitedUnited Bank LimitedWorldCall Telecomm-

unication Limited

23

5,0031

5955

125,019

20514

271,001

6

5

107,504

1,102

451

474,7684

9282

4210

109

––––

–––

115,000

––

25,00090,000

–

–

–

–

–––

474,768–

––

–––

––500–

1––

12,500

2––

7,100–

–

1,075

11

–––

47,477–

–3

––

1

––––

–––

11,500

––

2,5009,000

–

–

–

–

–––

47,477–

––

–––

––252–

–––

6,250

2––

7,144–

1

1,816

4

–––

5,222–

–4

–––

––––

–––

13,737

––

8,36022,055

–

–

–

–

–––

20,605–

––

–––

––465–

–––

14,438

2––

16,249–

1

1,969

7

–––

12,322–

–3

–––

––––

–––

13,372

––

8,46222,921

–

–

–

–

–––

12,322–

––

–––

32,916 82,578 63,713 70,405

124

4. FULLY PAID-UP ORDINARY SHARES - UNLISTED

Khushali Bank Limited 25 25 25,000 25,000Ordinary shares of Rs. 1,000,000/- eachChief Executive - Mr. Ghalib NishtarBreak-up value per share Rs. 1,078,934/- based on auditedaccounts for the year ended December 31,2007

Pakistan Export Finance Guarantee 1,136,088 1,136,088 11,361 11,361Ordinary shares of Rs. 10/- eachChief Executive - Mr. S. M. ZaeemBreak-up value per share Rs. 3.14/- based on auditedaccounts for the year ended December 31, 2007

DHA Cogen Limited 5,000,000 5,000,000 50,000 50,000Ordinary shares of Rs. 10/- eachChief Executive - Mr. Michael YapBreak-up value per share Rs. 9.84/- based on auditedaccounts for the year ended June 30, 2008

Dawood Family Takaful Limited 3,500,000 – 35,000 –Ordinary shares of Rs. 10/- eachChief Executive - Mr. Abdul Halim NasriBreak-up value per share Rs. 9.92/- based on auditedaccounts for the year ended June 30, 2008

Society for World Wide Inter Bank Fund Transfer (SWIFT) 14 14 1,740 1,740Ordinary shares of Euro 2,290/- eachChief Executive - Mr. Pascal Deman

123,101 88,101

5. FULLY PAID-UP PREFERENCE SHARES - LISTED

Chenab Limited 4,000,000 4,000,000 40,000 40,000

Preference shares of Rs. 10/- each

These are non-voting, cumulative preference shares redeemable by August 2008 and carry preferreddividend of 9.25% (2007:9.25%) per annum on cumulative basis and have a market value of Rs. 32,680thousand (2007: 32,000 thousand).

6. FULLY PAID-UP PREFERENCE SHARES - UNLISTED

Jamshoro Joint Venture Limited 2,500,000 2,500,000 25,000 25,000

Ordinary shares of Rs. 10/- each

These are non-voting, cumulative preference shares redeemable after January 2009 and carry preferreddividend of 15.00% (2007:15.00%) per annum on cumulative basis and have a market value of Rs. 32,680thousand (2007: 32,000 thousand).

2008 20072008 2007No. of shares Rupees in ‘000

2008 20072008 2007No. of shares Rupees in ‘000

125

7.

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2007

2008

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2008

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5,00

0–

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20,0

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1,97

411

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17,0

001,

974

5,00

0–

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5,00

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20,0

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5,00

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12,7

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,000

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,000

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10,0

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8,54

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2,98

71,

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– –17

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4,74

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5,85

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10,0

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3,60

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24,9

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– 99,8

4050

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99,9

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22,9

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– – 45,8

3366

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55,4

6720

0,00

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– – 9,85

656

,364

84,8

8124

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10,0

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300

48,5

2526

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17,9

8610

0,00

0

1,47

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1

54,5

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,474

9,99

271

,640

99,8

8050

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100,

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– 49,9

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2,85

449

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8,96

712

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50,0

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55,4

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0,00

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0,00

04,

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9,86

0– – 84

,915

24,6

4915

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12,0

108,

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48,5

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17,9

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1,28

6,71

0

49,9

6050

,000

24,9

659,

988

– 99,8

4049

,970

99,9

6012

3,31

037

,485

22,9

08– 49

,960

– – 45,8

3366

,987

49,9

7020

0,00

099

,980

– – 9,85

656

,364

84,8

8123

,690

10,0

00– 4,

000

49,9

2324

,980

17,9

8610

0,00

0

1,46

2,79

6

49,9

80– 24

,975

9,99

263

,398

99,8

8049

,990

100,

000

– 49,9

8024

,995

2,85

449

,980

8,96

712

,821

50,0

0067

,000

49,9

9020

0,00

010

0,00

04,

265

9,86

0– – 84

,915

23,7

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11,1

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49,9

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17,9

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1,26

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0

AA

-A AA

-A

A-

AA

-A

A-

AA

-A

AA

AA

+A

A-

–A

A+

– – – A+

AA

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A+

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ted

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AA – A AA

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+ – – A+

AA

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A-

–

126

7.1 Other particulars of listed term finance certificates are as follows:

Allied Bank LimitedAl Zamin Leasing ModarabaAskari Bank LimitedAskari Bank Limited IIBank Al-Habib Limited IBank Al-Habib Limited IIEngro Chemical Pakistan Limited - IPOEngro Chemical Pakistan Limited - PerpetualFirst International Investment Bank LimitedFirst Receivables Securitization LimitedJahangir Siddiqi & Company LimitedNew Allied Electronics Industries (Pvt) Ltd.NIB Bank LimitedOrix Leasing Pakistan Limited IIOrix Leasing Pakistan Limited IIIPak Arab Fertilizer LimitedRoyal Bank of ScotlandSitara Energy LimitedSoneri Bank LimitedStandard Chartered Bank LimitedTrust Investment Bank Limites - IITrust Leasing Company LimitedUnited Bank Limited IUnited Bank Limited IIIWorldCall TeleCommunication Limited IIWorldCall TeleCommunication Limited III

6 months KIBOR plus 190 bps6 months KIBOR plus 190 bps6 months KIBOR plus 150 bps6 months KIBOR plus 150 bps6 months KIBOR plus 150 bps6 months KIBOR plus 195 bps6 months KIBOR plus 155 bps6 months KIBOR plus 170 bps6 months KIBOR plus 225 bps6 months KIBOR plus 200 bps6 months KIBOR plus 250 bps3 months KIBOR plus 275 bps6 months KIBOR plus 180 bps6 months KIBOR plus 150 bps6 months KIBOR plus 120 bps6 months KIBOR plus 150 bps6 months KIBOR plus 190 bps6 months KIBOR plus 115 bps6 months KIBOR plus 160 bps6 months KIBOR plus 200 bps6 months KIBOR plus 200 bps6 months KIBOR plus 300 bps8 year’s PIB rate plus 100 bps6 months KIBOR plus 170 bps6 months KIBOR plus 275 bps6 months KIBOR plus 240 bps

semi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annually

Quarterlysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annually

16-Nov-1412-May-1203-Feb-1326-Oct-1329-Jun-1229-Dec-1421-Jun-1518-Sep-1827-Jun-1126-Dec-138-Jan-1214-May-1127-Dec-1519-Sep-1113-Jul-1212-Jul-123-Mar-1013-Nov-135-May-131-Feb-1315-Nov-1017-Jul-0929-Jun-1228-Jun-145-Dec-1116-May-13

Rate PaymentMaturity

Date

8. TERM FINANCE CERTIFICATES - UNLISTED

Avari Hotels LimitedJamshoro Joint Venture LimitedPakistan International Airlines

Corporation LimitedPakistan Mobile Communication

(Private) LimitedSecurity Leasing Corporation

LimitedFaisalabad Electric Supply

Corporation IGujranwala Electric Power

Corporation IIslamabad Electric Supply

Corporation ISitara Peroxide LimitedK. S. Sulemanji Esmailji & Sons

(Pvt) Ltd

2008 2007 2008 2007

Rupees in ‘000

2008 2007

Rating

10,13311,00038,700

38,000

10,000

67,000

67,000

67,000

20,00030,000

10,13311,00038,700

68,000

10,000

–

–

–

––

A-–

Unrated

Unrated

Unrated

Unrated

Unrated

Unrated

UnratedUnrated

AAA

Unrated

Unrated

Unrated

–

–

–

––

No. of certificatesof Rs. 5,000/- each

50,6676,875

137,057

69,960

31,250

335,000

335,000

335,000

100,000150,000

1,550,809

50,66720,625

169,306

189,976

43,750

–

–

–

––

474,324

127

Avari Hotels LimitedJamshoro Joint Venture LimitedPakistan International Airlines Corporation LimitedPakistan Mobile Communication (Private) LimitedSecurity Leasing Corporation LimitedFaisalabad Electric Supply Corporation IGujranwala Electric Power Corporation IIslamabad Electric Supply Corporation ISitara Peroxide LimitedK. S. Sulemanji Esmailji & Sons (Pvt) Ltd

6 months KIBOR plus 325 bps3 months KIBOR plus 275 bps6 months KIBOR plus 85 bps6 months KIBOR plus 285 bps6 months KIBOR plus 130 bps6 months KIBOR plus 23 bps6 months KIBOR plus 23 bps6 months KIBOR plus 23 bps6 months KIBOR plus 110 bps6 months KIBOR plus 130 bps

semi annuallyQuarterly

semi annuallysemi annuallysemi annuallysemi annuallysemi annuallysemi annually

QuarterlyQuarterly

1-Nov-1415-Dec-099-Feb-1124-Feb-1328-Mar-113-Jun-113-Jun-113-Jun-1131-Dec-1228-Jun-12


Date

8.1 Other particulars of unlisted term finance certificates are as follows:

9. SUKUK BONDS

WAPDASui Southern Gas

Company LimitedState Bank of Pakistan

2008 2007 2008 2007

Rupees in ‘000

2008 2007

Rating

140,00060,000

–

155,00060,000

–

UnratedUnrated

Unrated

UnratedUnrated

Unrated


700,000300,000

900,000

1,900,000

775,000300,000

–

1,075,000

Jun-17Dec-12

Dec-11

MaturityDate

WAPDA

Sui Southern Gas Company LimitedPakistan Ijarah Sukuk Bonds

6 months KIBOR minus 25 bps

3 months KIBOR plus 20 bps14.75%

semi annually

Quarterlysemi annually

13-Jan-18 to31-Dec-1831-Dec-1231-Dec-11


Date

9.1 Other particulars of Sukuk are as follows:

10. CERTIFICATES OF INVESTMENT

Represent Certificates of Investment of various financial institutions carrying mark-up rates rangingbetween 17.55 to 20% (2007: 9.45% to 10%) per annum maturing in January 2009.

128

11.

OP

EN

EN

DE

D M

UT

UA

L F

UN

DS

2008

2007

2008

2007

2008

2007

Net

Ass

et V

alu

eC

ost

Rat

ing

Ru

pee

s in

‘000

2008

2007

No

. of

Un

its

Fac

eV

alu

eR

s.

* T

he B

ank

is a

lso

a tr

uste

e of

the

Fun

d.

Met

ro B

ank

Pak

ista

n S

over

eign

Fun

d*A

BL

Inco

me

Fund

AK

D In

dex

and

Trac

ker F

und

AK

D O

ppor

tuni

ty F

und

Alfa

lah

GH

P P

rinci

pal P

rote

cted

Fun

dA

MZ

Plu

s In

com

e Fu

ndA

skar

i Ass

ets

Allo

catio

n Fu

ndA

skar

i Inc

ome

Fund

Atla

s In

com

e Fu

ndB

MA

Chu

ndrig

arh

Roa

d S

avin

gs F

und

Daw

ood

Mon

ey M

arke

t Fun

dFa

ysal

Sav

ings

gro

wth

Fun

dH

BL

Inco

me

Fund

IGI I

ncom

e Fu

ndJS

Agg

ress

ive

Inco

me

Fund

JS In

com

e Fu

ndK

AS

B B

alan

ce F

und

KA

SB

Liq

uid

Fund

MC

B D

ynam

ic A

lloca

tion

Fund

MC

B D

ynam

ic C

ash

Fund

Mee

zan

Isla

mic

Inco

me

Fund

NA

FA C

ash

Fund

NA

FA Is

lam

ic In

com

e Fu

ndN

AFA

Isla

mic

Mul

ti A

sset

Fun

dN

AFA

Sto

ck F

und

Pak

Om

an B

oP A

dvan

tage

Plu

s Fu

ndP

akis

tan

Inco

me

Fund

Pak

ista

n In

tern

atio

nal E

lem

ent I

slam

ic F

und

Pak

ista

n S

tock

Mar

ket F

und

UB

L Is

lam

ic In

com

e Fu

ndU

BL

Prin

cipa

l Pro

tect

ed P

lan

- IU

nite

d G

row

th &

Inco

me

Fund

Uni

ted

Mon

ey M

arke

t Fun

d

8,42

5,30

02,

500,

000

1,58

2,91

381

1,64

650

0,00

0–

629,

050

6,70

2,79

539

4,75

0– –

1,47

9,87

44,

346,

613

– –4,

953,

704

–7,

002,

677

250,

000

6,99

0,34

25,

772,

472

37,1

89,5

83–

2,50

0,00

03,

216,

727

–6,

054,

073

–36

8,35

115

0,00

019

0,72

17,

850,

919

4,10

6,74

3

16,7

62,0

00–

1,50

0,00

0–

3,38

2,15

13,

861,

983

–7,

660,

819

478,

176

1,50

6,07

21,

712,

383

965,

826

4,85

6,72

72,

179,

708

5,00

0,00

03,

881,

945

2,50

0,00

06,

726,

388

–2,

236,

852

–67

,221

,725

1,50

0,00

02,

500,

000

–99

8,94

27,

640,

879

600,

556

–15

0,00

0–

1,92

5,85

53,

373,

078

50 10 10 50 50 100

100

100

500 10 100

100

100

100 10 100 50 100

100

100 50 10 10 10 10 50 050 50 50 100 50 100

100

371,

893

25,0

228,

611

23,9

4423

,890

– 37,8

1563

5,69

318

8,56

8– –

153,

285

413,

493

– –49

9,63

1–

636,

263

13,7

6268

9,88

528

0,03

735

6,63

0– 21

,312

17,1

17–

292,

109

– 13,8

3213

,985

17,0

9575

1,10

538

9,62

2

5,87

4,59

9

821,

338

– 19,8

90–

177,

867

408,

818

–80

9,05

925

0,55

015

,515

180,

590

101,

557

507,

819

228,

739

50,0

0041

0,55

425

,000

707,

549

–23

4,21

6–

706,

608

15,1

9624

,341

– 50,6

9640

1,07

032

,250

– 15,0

00–

201,

672

352,

955

6,74

8,84

9

370,

460

25,0

0015

,000

50,0

0025

,000

– 60,0

0070

5,00

020

0,00

0– –

150,

000

450,

000

– –50

0,00

0–

745,

000

25,0

0073

0,00

030

0,00

040

0,00

0– 25

,000

40,0

00–

300,

000

– 25,0

0015

,000

25,0

0080

0,00

040

0,00

0

6,38

0,46

0

819,

830

– 15,0

00–

175,

000

400,

000

–80

0,00

025

0,00

015

,000

180,

000

100,

000

500,

000

225,

000

50,0

0040

5,00

025

,000

695,

000

–22

5,00

0–

700,

000

15,0

0025

,000

– 50,0

0040

0,00

025

,000

– 15,0

00–

200,

000

350,

000

6,65

9,83

0

Uu

rate

dA

(f)

5 S

tar

Un

rate

dU

nra

ted

Bb

b+

(f)

Un

rate

d5

Sta

r4

Sta

rA

(f)

5 S

tar

A+

(f)

Un

rate

dU

nra

ted

Un

rate

d5

Sta

rU

nra

ted

5 S

tar

Un

rate

dU

nra

ted

A (

f)A

(f)

Un

rate

dU

nra

ted

A (

f)5

Sta

r4

Sta

rU

nra

ted

Un

rate

dU

nra

ted

A (

f)A

+ (

f)

Unr

ated

–U

nrat

ed–

Unr

ated

A (

f)–

A (

f)5

star

Unr

ated

3 S

tar

A+

(f)

Unr

ated

Unr

ated

Unr

ated

5 S

tar

Unr

ated

Unr

ated

–U

nrat

ed–

5 S

tar

Unr

ated

Unr

ated

–A

(f)

4 S

tar

Unr

ated

–U

nrat

ed–

A (

f)A

+ (

f)

129

12. CLOSE ENDED MUTUAL FUNDS

BMA PrincipalGuaranteed Fund - I 5,517,697 5,254,950 49,659 47,557 49,575 49,575 Unrated Unrated

Intersecurities IslamicFund – 250,000 – 2,569 – 2,500 – Unrated

Meezan BalancedFund 2,500,000 2,500,000 12,700 21,000 25,000 25,000 Unrated 5-Star

Pakistan StrategicAllocation Fund 3,087,000 3,087,000 8,582 28,092 30,868 30,868 5-Star 4-Star

PICIC Energy Fund 4,200,000 4,200,000 15,162 31,500 42,000 42,000 4-Star Unrated

PICIC Growth Fund 42,000 42,000 332 1,197 1,946 1,946 Unrated 2-Star

UTP-Large CapitalFund 2,820,500 2,820,500 9,279 22,846 27,959 27,969 Unrated 4-Star

95,714 154,761 177,348 179,848

2008 2007


2008 2007 2008 2007 2008 2007

Market Value Cost Rating

Rupees in ‘000

130

Abd

ul M

ajee

d13

7-La

kshm

idas

Stre

et, K

hara

dar,

Kar

achi

.

Mr.

Abd

ul M

ajee

d51

1-52

-019

052

Mr.

Abd

ul H

amee

d8,

813

–8,

813

8,81

3–

8,81

31.

Anu

m W

eavi

ng (P

rivat

e) L

td.

20-K

M, F

eroz

epur

Roa

d,La

hore

Mr.

Ani

s Is

mai

l Nav

iwal

a35

202-

7910

452-

7M

r. A

nis

Kar

im35

202-

9884

667-

0M

r. Ja

ved

Ars

had

Bha

tti35

202-

8469

816-

7M

r. M

oham

mad

Ahs

an27

1-54

-091

273

Mr.

Moh

amm

ad R

afiq

517-

85-0

7075

5M

r. M

oham

mad

Yah

ya51

7-86

-071

753

Mr.

Moh

amm

ad N

aviw

ala

Mr.

Haj

i Kar

im

Mr.

Sal

im B

hatti

Mr.

Haj

i Nia

mat

Mr.

Abd

ul G

hafo

or

Mr.

Abd

ul G

hafo

or

4,82

6–

4,82

64,

826

–4,

826

3.

Dye

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m In

dust

ries

(Priv

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Lim

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se II

, Gad

oon

Am

azai

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stria

l Est

ate,

Dis

tt. S

wab

i, N

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Mr.

Man

soor

Ahm

ad K

hatri

4200

0-04

7144

6-5

Mr.

Abd

ul R

ahim

Kha

tri42

201-

0287

054-

1M

r. A

bdul

Azi

z K

hatri

4230

1-10

6799

0-1

Mr.

M. S

iddi

q K

hatri

4220

1-03

5797

2-7

Haj

i Ayu

b

Abd

ul R

ehm

an

Haj

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Haj

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40,2

07–

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0740

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–40

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4

Hal

ima

Gar

men

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imite

d7-

A, M

uslim

Tow

n, L

ahor

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r. A

li A

bbas

271-

88-2

5091

4M

r. A

li S

ajja

d27

1,-8

8-25

0913

Mrs

. Hal

eem

a S

huja

N.A

.M

s. A

lia H

assa

n27

1-90

2509

16M

r. Ta

riq R

ashi

d35

201-

4899

442-

7

Mr.

Shu

ja-u

l-Has

san

Mr.

Shu

ja-u

l-Has

san

Mr.

Shu

ja-u

l-Has

san

Mr.

Shu

ja-u

l-Has

san

9,71

3–

9,71

39,

713

–9,

713

5

Nam

e an

d ad

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the

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Nam

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Fath

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ame

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l

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ff

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ark-

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tal

Out

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ding

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s at

begi

nnin

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the

year

S. N

o.

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-B, N

ear A

l-Fat

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asjid

,B

lock

B, N

orth

Naz

imab

ad,

Kar

achi

.

Mr.

Sae

ed42

501-

8635

782-

9M

r. A

bdul

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eed

1,21

3–

1,21

31,

213

–1,

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2.

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8

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90,0

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92,1

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2,08

092

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Tota

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Mum

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App

arel

(Priv

ate)

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ited

D-1

65/A

, S.I.

T.E

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arac

hi

Mr.

Akb

ar42

301-

0855

821-

1M

r. A

mir

Ali

4230

1-08

6103

3-7

Mr.

Am

ir A

li

Mr.

Kas

sam

Ali

1,98

358

2,04

119

8358

2,04

16.

Nam

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d ad

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ind

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d, L

ahor

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Mr.

Soh

aib

Ahm

ed35

202-

3038

237-

1M

r. A

wai

s A

hmed

3520

2-30

3824

4-3

Mr.

Sal

eh M

ehm

ood

N.A

.M

s. K

anei

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.A.

15,3

641,

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17,3

1415

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1,95

017

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7.

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r Lab

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tgom

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Mia

n S

hahb

az M

oin-

ud-D

in35

202-

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476-

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ian

Shu

kat A

li26

7-91

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573

Mrs

. Kau

kab

Mur

taza

266-

59-3

7570

5M

rs. M

isba

h S

hauk

at26

7-91

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575

554

7262

645

472

526

8.

Sim

sona

Kni

twea

r69

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reen

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C G

ulbe

rg, L

ahor

e

Mr.

Muh

amm

ad N

asir

3520

2-27

5911

4-9

954

–95

495

4–

954

9.M

r. M

oham

mad

Irsh

ad

Sca

ntex

(Priv

ate)

Lim

ited

C 1

B-2

0, 2

1, S

ecto

r 16,

Kor

angi

Indu

stria

l Are

aK

arac

hi

Mr.

S. A

bdul

Azi

z42

301-

0848

747-

3M

r. Ta

hir A

ziz

4230

1-05

5354

5-3

Mr.

S. S

ohai

l Azi

z42

301-

9709

8327

-7

6,42

3–

6,42

36,

423

–6,

423

10.

Mr.

Haj

i Alla

h D

itta

Mr.

Abd

ul A

ziz

Mr.

Abd

ul A

ziz

132

Shershah:D-283/1, S.I.T.E. Area,Trans Lyari Quarter, Karachi.Phones : (021) 258 6301 (3 Lines)Fax : (021)258 6305

M. A. Jinnah Road:Corner Abdullah Haroon Road,Karachi.Phones : (021) 273 7617 (4 Lines)Fax : (021) 273 7621SWIFT : MPBLPKKA020

Karachi Stock Exchange:Old Stock Exchange Building,Stock Exchange Road,Karachi.Phones : (021) 240 1921 (3 Lines)Fax : (021) 240 1925

Jodia Bazar:7- Mehboob Chamber,Adamjee Haji Dawood Road,Jodia Bazar, Karachi.Phones : (021) 243 7187, 241 1925,

: (021) 243 7909, 243 8157Fax : (021) 243 0056SWIFT : MPBLPKKA015

Shahrah-e-Faisal:Siddique Sons Tower 3, Jinnah Society,Near Shaheed-e-Millat Flyover,Shahrah-e-Faisal, Karachi.Phones : (021) 452 8395 (3 Lines)

: (021) 452 2920Fax : (021) 438 3498SWIFT : MPBLPKKA012

Gulshan-e-lqbal:Plot No. 118/B/A-XV, Block 10-A,Main Rashid Minhas Road, Near Drive-in Cinema,Gulshan-e-lqbal, Karachi.Phones : (021) 402 1651 (3 Lines)

: (021) 402 1654Fax : (021) 402 1655

Cloth Market:BR 1/43, Metro Centre,Bombay Bazar, Kharadar,P.O. Box 6453, Karachi.Phones : (021) 231 3712 (3 Lines)

: (021) 231 3763, 231 3927Fax : (021) 231 3715SWIFT : MPBLPKKA011

Main Branch:Ground Floor,Spencer's Building, I.I. Chundrigar Road,G.P.O Box 1289 Karachi.Phone : (021) 263 6740 (20 Lines)UAN : (021) 111-18-18-18Fax : (021) 263 0404-5SWIFT : MPBLPKKA

Paper Market:Plot No. 7,8 R-6, Altaf Hussain Road,New Challi,Karachi.Phones : (021) 221 0562 (6 Lines)Fax : (021) 221 0568SWIFT : MPBLPKKA013

Hyderi:7-A, Mustafa Market,Block G, Barkat-e-Hyderi, Karachi,Phones (021) 664 0774 (3 Lines)Fax (021) 664 0777

Dhoraji Colony:Madni Pride, Block 7 & 8,C.P. Berar,C.H.S.,Dhoraji Colony, Karachi.Phones : (021) 494 9535 - 44 - 64

(021) 494 9556Fax : (021) 494 9592

GuIshan Chowrangi:FL 4/S, Hamid Square,Block 3, Gulshan-e-lqbal, Karachi.Phones : (021) 480 0790 (3 Lines)Fax : (021) 480 0789

Khalid Bin Walid Road:Khalid Bin Walid Road,F/168/A, Madina Mall, Block-3,PECHS, Karachi.Phones : (021) 439 0191 (3 Lines)Fax : (021) 439 0190

Ceramic Market:485/486, Rizvia Society,Nazimabad, Karachi.Phones : (021) 660 0546 (3 Lines)

: (021) 670 1001Fax : (021) 660 7462

Landhi:15 Milestone, National Highway,Landhi-4, Karachi.Phones : (021) 502 4901 (4 Lines)

(021) 769 0866Fax : (021) 502 5200

Paposh Nagar:6-A, Block V-A Nazimabad No. 5,Karachi.Phones : (021) 670 0001 (4 Lines)Fax : (021) 670 0005

Textile Plaza:Nadeem Cloth Market,M.A. Jinnah Road, Karachi.Phones : (021) 242 2476 (2 Lines)

: (021) 242 2415 (2 Lines): (021) 241 3964

Fax : (021) 241 6148

Water Pump:57, Nawaz Court, Block-16,FedeTal "B" Area, KarachiPhones : (021) 681 2577 (2 Lines)

: (021) 632 3028Fax : (021) 633 4557

KARACHI North Napier Road:Plot W.O.1/33, North Napier Road,Near Dandia Bazar, KarachiPhones : (021) 273 7603 (4 Lines)Fax : (021) 273 7607SWIFT : MPBLPKKA021

KarimabadSohni Bridal Shopping Centre,BS-6, Block-4, F.B. Area,Karachi.Phones : (021) 634 5236 (2 Lines)

: (021) 634 9446, 680 2262Fax : (021) 634 9447

SITE:3/9-B-2, Metro Chowrangi,S. 1. T. E., Karachi.Phones : (021) 256 4101 (3 Lines)

: (021) 256 4104, 2564793Fax : (021) 256 4100SWIFT : MPBLPKKA023

DHA:1-C, Khayaban-e-Shamsheer,Phase V, Karachi.Phones : (021) 585 7404 (3 Lines)

: (021) 585 7407Fax : (021) 585 7403

Timber Market:5, Siddiq Wahab Road, Timber Market,Karachi.Phones : (021) 276 8411 (3 Lines)

: (021) 276 8415Fax : (021) 276 8414

Korangi:Aiwan-e-Sanat Building, Sector 23,Korangi Industrial Area, Karachi.Phones : (021) 506 9162, 506 9175

: (021) 506 9130, 506 9180Fax : (021) 506 9171

Saddar:SB-4/4, Zaibunnisa Street, Saddar,Karachi.Phones : (021) 521 6308 (2 Lines)

: (021) 521 6433Fax : (021) 521 6434

Alamgir Road:25, Central Commercial Area,Main Alamgir Road, Bahadurabad,Karachi.Phones : (021) 494 8805 (3 Lines)

: (021) 494 8810Fax : (021) 494 8803

Ittehad:86-C, 11th Commercial Street,D.H.A. Phase 11 Ext., Karachi.Phones : (021) 589 7623 (2 Lines)

: (021) 538 2109(021) 538 2110

Fax : (021) 588 6872

North Karachi Industrial Area:ST-5, Gabol Town,Federal 'B' Area, Karachi.Phones : (021) 695 7569, 693 3461 (3 Lines)

(021) 693 3234, 693 3235Fax : (021) 695 7570

BRANCH NETWORK

Ground Floor, Spencer's Building,G.P.O. Box 1289, I.I. Chundrigar Road,Karachi-74200, Pakistan

REGISTERED OFFICE AND HEAD OFFICE

Phones : (021) 263 6740 (20 Lines)Fax : (021) 263 0405 - 262 0716U.A.N. : 111-14-14-14 and 111-18-18-18

14th Floor, Saima Trade Towers ‘A’,I.I. Chundrigar Road, Karachi-74200,Pakistan.Phones : (021) 227 1935 (14 Lines)Fax : (021) 227 1950

SWIFT : MPBLPKKAURL : www.hmb.com.pkE-mail : [email protected]

133

University Road:Opp. NED University, No. 101.Zenith Heights BI-1,Gulistan-e-Johar, Karachi.Phones : (021) 402 9701 (3 Lines)

: (021) 402 9704Fax : (021) 402 9705

Boat Basin:GPC-2, BI-5 KDA Scheme No. 5,Clifton, Karachi.Phones : (021) 587 9734 (3 Lines)

: (021) 587 9737Fax : (021) 587 9738

HBZ Plaza:HBZ Plaza, I.I. Chundrigar Road,P.O. Box 1424, Karachi-74200.Phones : (021) 263 3311-30Fax : (021) 263 1418-19SWIFT : MPBLPKKA 052

Clifton:S-2, Uzma Arcade, Block-7,Khayaban-e-Iqbal, KDA Scheme 5,Clifton KarachiPhones : (021) 587 7831-5Fax : (021) 583 2019SWIFT : MPBLPKKA 057

City Court:Premises No, 5 & 7, Court Chamber,Syedna Tahir Saifuddin Road,Opp. City Court,Karachi.Phones : (021) 272 9991-4

: (021) 272 0106-8Fax : (021) 272 9805SWIFT : MPBLPKKA 058

Plaza Square:Shopp # 1 &1B, Ground Floor,Naseeb Building No. 37/1,Plaza Square,M.A. Jinnah Road, KarachiPhones : (021) 273 7183-5

(021) 275 0623Fax : (021) 273 7187SWIFT : MPBLPKKA 059

Avenue Branch Site:B-12-D, S.I.T.E., Karachi.Phones : (021) 255 0314-18Fax : (021) 255 0312SWIFT : MPBLPKKA 060

Marriot Road:MR - 1/37-G-5, Jelani Manzil,Marriot Road Karachi.Phone : (021) 247 3509

(021) 247 3359(021) 247 3586

Fax : (021) 247 3550SWIFT : MPBLPKKA 063

Industrial Area Korangi:Plot No. SC-8 (ST-17) Sector - 15,Korangi Township, Karachi.Phone : (021) 511 4055-60

(021) 832 0007-8Fax : (021) 511 4053

Mereweather Tower:GK-7/99, Tower Mention,M.A Jinnah Road , Opp. M.W. Tower,KarachiPhones : (021) 240 1981-5Fax : (021) 243 8295SWIFT : MPBLPKKA 056

Business Avenue:Business Avenue, 26/A, Block - 6,Shahrah-e-Faisal Karachi.Phone : (021) 439 1420-25Fax : (021) 439 1428SWIFT : MPBLPKKA 065

Preedy Street:Shop # 12, 15, 16 & 17, Plot # 273/1,Coronation Building, Artillery Maidan,Preedy Street, Saddar Karachi.Phone : (021) 272 6391

(021) 274 3394-6(021) 274 3406


Khayaban-e-Shahbaz:Plot No. 6/2, Survey, No. 26,Khayaban-e-Shahbaz Lane 2,Phase VI D.H.A. Karachi.Phone : (021) 534 2036, 584 7314


Bahadurabad:Prime Arcade,Bahadur Shah Zafar Road,Bahadurabad, Karachi.Phone : (021) 494 9316, 493 3677

(021) 413 0936, 413 0937Fax : (021) 493 3729SWIFT : MPBLPKKA 0687

North Nazimabad:Shop No. 6/7 & 8, Kaneez Market,North Nazimabad Karachi.Phone : (021) 663 9404

(021) 663 9262(021) 663 9816(021) 663 6291


Mission Road:Plot Survey No. 1, Shop No. 2,Popular Tiles Building,Mission Road Karachi.Phone : (021) 273 6656


Mangopir Road:D-22, Mangopir Road,S.I.T.E. Karachi.Phone : (021) 259 4025-27


Phase II D.H.A :Plot Bearing No. 12-C Korangi Road,Phase II, D.H.A. Karachi.Phone : (021) 539 6989-91Fax : (021) 539 6996

Gulistan - e - Johar:Shop No. B-5/1, 1 Plot No. Fl-22,Block-15 Gulistan-e-Johar, Karachi.Phone: (021) 403 0271-13Fax: (021) 403 0274

Soldier Bazar:Rodrigues Street,Soldier Bazar, Karachi.Phone : (021) 224 1545-7

(021) 2241549Fax : (021) 2241548

U.P. More:Block 11-B, U.P. More, Karachi.Phone : (021) 696 4692-3

(021) 696 4694Fax : (021) 696 4695

Allama Iqbal Road:Plot No. 946, 947 - C,P.E.C.H.S, Allama Iqbal Road,Karachi.Phone : (021) 430 1061-4Fax : (021) 430 1065

Nishtar Road:Plot No. LR-10, Shop No. 1,Nishtar Road Karachi.Phones : (021) 273 0693-97Fax : (021) 273 0686

Gulshan-e-Maymar:Plot No. SB-001, Sector - X,Sub Sector - II, Gulshan-e-Maymar,Karachi.Phones : (021) 683 3453-4Fax : (021) 683 3455

PIB Colony:Plot, No. 389, PIB ColonyKarachi.Phones : (021) 486 0561-3Fax : (021) 486 0565

Lines Area:Mubarak Shaheed Road, Opp 602Workshop Store No. 3, Lines Area Karachi.Phones : (021) 279 3282-84 (3Lines)

(021) 279 3285Fax : (021) 279 3286

West Wharf:Show Room No. 7 & 8,Pak Chamber, West Wharf Road,Karachi.Phones : (021) 231 4752-54Fax : (021) 231 4253

Civil Lines:Mehran Estate, Plot No. 18/15,Survey Sheet No. C.L.17,Civil Lines Quarters, Karachi.Phones : (021) 562 2590-2Fax : (021) 562 2594

Stadium Road:Shop No. A, Plot No. SB-11,KDA Scheme No. 1-A (Extension),Stadium Road, KarachiPhone : (021)Fax : (021)

Stargate:Near Stargate, Shahrah-e-FaisalKarachi.Phone : (021) 587 8475-9Fax : (021) 587 8473

Malir City:Plot No. Ls-33, Street No.32,Sector 4, Liaquat Market,Malir Town Ship, Karachi.Phones : (021) 411 4087-89Fax : (021) 411 4152

Gizri Road:Plot No. K7-35 & 37,Choudhary Khaliq-uz-Zaman Road,Karachi.Phones : (021) 582 2871-2

Khayaban-e-Bokhari:Plot # 24-C, Khayaban-e-Bokhari,Phase-VI, D.H.A., Karachi.Phone : (021) 524 2701-3

: (021) 524 2704Fax : (021) 524 2705

134

Davis Road:14-B, Davis Road, (Sir Aga Khan Road)P.O.Box 2276, Lahore.Phone : (042) 627 9020 (5 Lines)

(042) 630 7613Fax : (042) 636 8392SWIFT : MPBLPKKA053

Garden Town:Ibrahim Trade Center,1-A1, Aibak Block,New Garden Town Lahore.Phone : (042) 594 1636-8


Ravi Road:75-76, Ravi Road,Datagunj Buksh Town,Lahore.Phone : (042) 770 3106-7


Peco Road:110 PECO Road,Badami Bagh Lahore.Phone : (042) 770 1172-4

: (042) 770 1170Fax : (042) 770 1171SWIFT : MPBLPKKA067

Raiwind Road:9 KM Raiwind Road, Bhoptian Chowk,Khewat No. 840, Khatoni No. 1251,Khasra No. 1907-10, Lahore.Phone : (042) 532 3151-5Fax : (042) 532 3152SWIFT MPBLPAAK069

Shahrah-e-Quaid-e-Azam:Bank Square, Lahore.Phone : (042) 723 5725 (4 Lines)

: (042) 723 5703Fax : (042) 723 5704

Urdu Bazar:Outside Lohari Gate, 213Circular Road, Lahore.Phone : (042) 736 1274-7Fax : (042) 736 1273

Ferozpur Road:19 K.M. Freozpur Road,Mouza Attari, Lahore.Phone : (042) 580 9344-50Fax : (042) 580 8570

Johar Town:Plot No. 654, Block G/1,Johar Town Scheme, Lahore.Phone : (042) 529 0902Fax : (042) 529 0903

Walton Road:E-65, Zaman Colony,Walton Road, Lahore.Phone : (042) 660 1325-26Fax : (042) 660 1324

Main Boulevard:19-B, Main Boulevard, GulbergLahore.Phone : (042) 587 8475-9Fax : (042) 587 8473

Safoora Goth:Plot # 7/7, Block 4, Scheme - 36University Road, Near Safoora Goth, Karachi.Phone : (021) 466 0236-8

: (021) 466 0240Fax : (021) 466 0239

Liaquatabad:G-5, G-8 & G-9, Commercial SITE #11,Industrial Area Liaquatabad, Karachi.Phone : (021) 491 4121-3Fax : (021) 491 4128

Shahrah-e-Quaideen:103-K, Block-2, P.E.C.H.S.,Shahrah-e-Quaideen, Karachi.Phone : (021) 452 9531Fax : (021) 452 3079

Port Qasim:Plot # W-21/2 & 3, North Western Zone,Port Qasim, Karachi.Phone : (021) 475 0232Fax : (021) 475 0231

Hub:Shops # 1,2,3, & 4, Survay # 97/111,Mouza Bairut, Main RCD Road,Tehsil Hub, Distt. Lasbella, Baluchistan.Phone : (0853) 363 701-2Fax : (0853) 363 705

HUB

Gulberg:85, D-1, Main Boulevard, Gulberg-Ill,G.P.O Box No. 54660, Lahore.Phones : (042) 587 2091 (4 Lines)

: (042) 575 5151, 575 5252Fax : (042) 575 4480

Circular Road:83-Circular Road, Lahore.Phones (042) 767 2634 ( 5 Lines)Fax (042) 767 2631

Defence:9-Z, Defence Housing Authority, Lahore,Phones : (042) 589 4162 (3 Lines)Fax : (042) 589 3878

Badami Bagh:38-R-359, Circular Road, Lahore.Phones : (042) 772 3471

: (042) 773 1413 (3 Lines)

Model Town Link Road:207-B, BI-A, Model Town Link Road,Lahore.Phones : (042) 520 1635 (3 Lines)

(042) 520 3657Fax : (042) 520 3658

LAHORE

Main Branch:Associated House,7-Egerton Road, Lahore.Phones : (042) 627 9062 (4 Lines)

: (042) 627 8812, 630 6902: (042) 630 7715-16, 630 4383: (042) 630 8301

UAN : (042) 111-18-18-18Fax : (042) 6279061SWIFT : MPBLPKKA002

Lahore Cantt:1186 - Tufail Road, Saddar,Lahore Cantt, Lahore.Phone : (042) 660 4801-3Fax : (042) 660 4804

Iqbal Town:19 - Hunza Block, Main Boulevard,Iqbal Town, Lahore.Phone : (042) 529 6719Fax : (042) 529 6819

Brandreth Road:39 Brendreth Road, Lahore.Phone : (042) 738 1107Fax : (042) 738 1106

SIALKOT:

Small Industrial Estate:27-28-A, Small Industrial Estate,Sialkot.Phones : (052) 325 4720, 325 4799Fax : (052) 325 4738

HYDERABAD:F-66, Risala Road,P.O. Box No. 182, Hyderabad.Phones : (022) 278 3893, 784087UAN : (022) 111-18-18-18Fax : (022) 278 3894

SUKKUR: B-2558 Shaheed Gunj, Sukkur

Phones : (071) 562 0432-35Fax : (071) 562 0484

Main Branch:95-A, Saddar Road, Peshawar.Phone : (091) 527 0904 (3 Lines)

: (091) 527 5784, 275709UAN : (091) 111-18-18-18Fax : (091) 5275624

QUETTA:Shahrah-e-lqbal,G.P.O. Box 185, Ouetta.Phones : (081) 283 5302,

(081) 283 5308UAN : (081) 111-18-18-18Fax : (081) 282 4209Cable : BANKMETRO

PESHAWAR

Khyber Bazar:Haroon Mansion, Khyber Bazar,Old City, Peshawar.Phone : (091) 256 6682-84Fax : (091) 256 6685

MIRPUR A K:Ejaz Plaza, Allama lqbal Road,Mirpur, Azad Kashmir.Phones : (058610) 43435, 48039-40

(058610) 45719Fax : (058610) 43677

Main Branch:Allama lqbal Chowk, Railway Road,G.P.O. Box 2626, Sialkot.Phones : (052) 458 002, 458 0037

: (052) 460 4905, 460 2451: (052) 459 3572

UAN : (052) 111-18-18-18Fax : (052) 458 8024SWIFT : MPBLPKKA006

135

Islamic Banking Branches:

Al Falah Court:Al-Falah Court, I.I. Chundrigar Road,Karachi.Phone : (021) 221 5360-3Fax : (021) 221 5358SWIFT : MPBLPKKA 71

Zaibunisa Street:SB-4f4, 2nd Floor, Zaibunnisa Street,Saddar, KarachiPhones (021) 565 0711 (4 Lines)Fax (021) 565 0650

Rashid Minhas Road:Plot No. FL-3/15, KDA Scheme No. 24Rashid Minhas Road,Gulshan-e-Iqbal, Karachi.Phone : (021) 481 9985-8

(021) 481 9990-4(021) 497 9264


KARACHI

Gulberg:House No. 85- D-1,Gulberg-III, Lahore.Phone : (042) 578 9942-4

(042) 578 9940Fax : (042) 578 9941

LAHORE

KAMOKE:Al-Madni Plaza, G.T. Road,Kamoke, Lahore.Phone : (055) 681 4185

GUJRANWALA:Main G.T. Road, OppositeCity Top Hotel, Gujranwala.Phones : (055) 384 5467 (3 Lines)

: (055) 325 1997Fax : (055) 384 5466

MULTAN:85-A, Qasim Road,P.O. Box No- 108, Multan Cantt.Phones : (061) 458 3515 (3 Lines)

: (061) 478 5719 - 20LAN : (061) 111-18-18-18Fax : (061) 4583518

Main Branch:P/64, Taj Plaza, Kotwali Road, Faisalabad.Phones : (041) 264 9902 (5 Lines)UAN : (041) 111-18-18-18Fax : (041) 264 9901SWIFT : MPBLPKKA009

FAISALABAD

Kotwali Road:P-71, Kotwali Road, P.O. Box 569,Faisalabad.Phones : (041) 263 4891-4Fax : (041) 263 3822SWIFT : MPBLPKKA054

Islamabad:24-D, Rashid Plaza,Jinnah Avenue, Islamabad.Phones : (051) 227 4088 (3 Lines)

: (051) 227 7438UAN : (051) 111-18-18-18Fax : (051) 227 4082SWIFT : MPBLPK010

ISLAMABAD

Susan Road:7- Main Susan Road,Madina Town, Faisalabad.Phones : (041) 850 2153-6Fax : (041) 850 2159SWIFT : MPBLPKKA054

RAHIM YAR KHAN:24, Shahi Road, Rahim Yar Khan.Phone (068) 587 9522Fax (068) 587 4193

F-10 Markaz:F-10, Markaz Branch,1-k, 10th Avenue, F-10, IslamabadPhones : (051) 210 2515-16Fax : (051) 210 2514

KASUR:Railway Road, Kasur.Phones : (0492) 925 0053, 276 4606

: (0492) 276 5331Fax : (0492) 925 0090

Bank Road:186/2, Bank Road, Rawalpindi Cantt.Phones : (051) 511 0178 - 81 - 82

: (051) 551 7013, 511 0177Fax : (051) 579 4376

Main Branch:9-Haider Road, Rawalpindi Cantt,P.O. Box 1682, Rawalpindi.Phone : (051) 552 2022

(051) 552 2033(051) 552 2044

Fax : (051) 552 2055SWIFT : MPBLPKKA055

RAWALPINDI

PROXY FORM

I/We

of

being member (s) of Habib Metropolitan Bank Limited and holding

ordinary shares, as per Register folio

hereby appoint Folio No.

of

or failing him Folio No.

of

another member of the Bank to vote for me/us and on my/our behalf at the 17th Annual General Meeting

of the Bank to be held on March 30, 2009 and at any adjournment thereof.

As Witness my/our hand this day of March 2009

A member entitled to attend General Meeting is entitled to appoint proxy to attend and vote instead of him.A proxy should be a member of the Bank. No person shall act as proxy (except for a corporation) unlesshe is entitled to be present and vote in his own right.

The instrument appointing a proxy should be signed by the member or by his attorney duly authorised inwriting. If the member is a corporation, its common seal (if any) should be affixed to the instrument.

The proxies shall be deposited at the Registered Office of the Bank not less than 48 hours before the timeof the meeting.

REVENUESTAMPRS. 5

SIGNATURE OF MEMBER(S)

consolidated accounts - habib metro bank · and consolidated statement of changes in equity, ... of...

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