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8/12/2019 Annual Accounts 2013
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MCB Bank Limited
Financial Statements
For the year ended December 31, 2013
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MCB BANK LIMITED
STATEMENT OF FINANCIAL POSITIONAS AT DECEMBER 31, 2013
Note 2013 2012 2011
Restated Restated
ASSETS
(------------Rupees i t!ous"#----------------$
Cash and balances with treasry banks ! "#,#$!,1"0 "%,$20,12# "3,122,"2
Balances with other banks % 1,"3!,#$! 1,1#1,#%$ 2,2&1,2!
Lendin's to (inancial instittions & 1,22$,!3& 1,""1,$%2 #"",0&
)n*estments + net # $$#,00!,01# $02,0!&,#1! 31!,!"1,!1
d*ances + net 10 2$&,2$2,#!" 23#,"&3,320 22%,"&0,13
-.eratin' (i/ed assets 11 2&,"#",33& 23,%3&,$"$ 22,00%,#0
De(erred ta/ assets + net + + +
-ther assets + net 12 2!,#"!,31" $1,"20,$32 31,1&3,%!
LIABILITIES
&1","0&,3%1 %!%,0%$,!#% !"3,%&2,2#
Bills .ayable 1$ 10,13&,%2! #,!,2&$ #,$!!,&1
Borrowin's 1" 3&,"$2,!!0 %&,#"1,103 3#,100,!2
De.osits and other acconts 1! !32,330,2&! "$",0!0,%2& $#1,1&&,%1
Sb+ordinated loan + + +
Liabilities a'ainst assets sbect to (inance lease + + +
De(erred ta/ liabilities + net 1% $,201,3%3 #,"2#,%2% !,$&%,"2
-ther liabilities 1& 20,0!$,3$" 21,1!!,1!! 1&,3%&,3%
NET ASSETS
%0",2%%,3#0 !!$,!0$,00& "!$,!22,0"
110,230,#&1 102,$%0,! ,1!0,23
Rep%esete# &'
Share ca.ital 1# 10,11&,$!1 #,1#&,!01 &,3!2,3!
Reser*es 20 $!,!01,21$ $$,2"3,2%0 $2,1&!,$!na..ro.riated .ro(it $0,""2,0$3 3",$2$,#21 2&,%23,#2
#%,2%1,%1& &&,&%!,%#2 %#,2%2,%!Sr.ls on re*alation o( assets + net o( ta/ 21 12,#"#,2!3 13,"#3,% #,&&%,$%
110,230,#&1 102,$%0,! ,1!0,23
Contin'encies and commitments 22
he anne/ed notes 1 to $! and nne/res ) to (orm an inte'ral .art o( these (inancial statements4
P%esi#et "# C!ie E)e*uti+e Di%e*to% Di%e*to
Di%e*to%
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MCB BANK LIMITEDPROFIT AND LOSS ACCONTFOR TE .EAR ENDED DECEMBER 31, 2013
Note 2013 2012
Restated
(Rupees i t!ous"#$
Mark+. 5 retrn 5 interest earned 2$ !",0!$,123 !&,3"!,1#1Mark+. 5 retrn 5 interest e/.ensed 2" 2%,1#",$ 2%,"00,01#
6et mark+. 5 interest income 3%,&!&,22# $0,&"!,1%2
7ro*ision 5 8re*ersal9 (or dimintion in the *ale o( in*estments +net #43 8!,&3$9 83,0$$9
7ro*ision 5 8re*ersal9 a'ainst loans and ad*ances + net 104"42 82,&2&,%&39 $&0,#03
Bad debts written o(( directly 104!41 + 20!
6et mark+. 5 interest income a(ter.ro*isions
82,&3",!1%9 $%&,0!"
$0,%03,&$! $0,3%&,10%
No-/"%-up ite%est i*o/e
Fee, commission and brokera'e income !,%$1,$0$ ",#3$,$%2
Di*idend income #32,%1% 1,1#%,!1"
)ncome (rom dealin' in (orei'n crrencies #1!,"%2 &22,&"!
:ain on sale o( secrities + net 2! 2,130,3$1 &2$,"3#nreali;ed 'ain on re*alation o(in*estments
classi(ied as held (or tradin' + +
-ther income 2% $$#,!0$ 3%3,&$#
otal non+mark+. 5 interest income 11,1%0,!3& #,1"3,331
No-/"%-up ite%est e)peses
"1,&%$,$&$ $#,"31,$3&
dministrati*e e/.enses 2& 1&,%0#,#!# 1%,$%!,&!2
-ther .ro*ision 5 8re*ersal9 + net 1243 8"2,2&"9 81&%,30"9
-ther char'es 2# #2&,"#" "##,#%$
otal non+mark+. 5 interest e/.enses 1#,"&!,2%# 1%,&,"31
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he anne/ed notes 1 to $! and nne/res ) to (orm an inte'ral .art o( these (inancial statements4
P%esi#et "# C!ie E)e*uti+eDi%e*to%
Di%e*to% Di%e*to%
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MCB BANK LIMITED
STATEMENT OF COMPREENSIE INCOMEFOR TE .EAR ENDED DECEMBER 31, 2013
2013 2012
Restated(Rupees i t!ous"#$
P%oit "te% t") o% t!e 'e"%21,$#",33
& 20,!%3,002
Ot!e% *o/p%e!esi+e i*o/e
Ite/s t!"t i44 ot &e %e*4"ssiie# to p%oit "# 4oss "**out
Remeasrement o( de(ined bene(it .lans + net o( ta/ $#,3%3 !2#,&20
Ite/s t!"t /"' &e %e*4"ssiie# to p%oit "# 4oss "**out
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MCB BANK LIMITED
CAS FLO6 STATEMENTFOR TE .EAR ENDED DECEMBER 31, 2013
Note 2013 2012
Restated
C"s! 4os %o/ ope%"ti7 "*ti+ities
(Rupees i t!ous"#$
7ro(it be(ore ta/ation 32,2&&,20" 31,!$1,#0%Less= Di*idend income 8#32,%1%9 81,1#%,!1"9
A#8ust/ets o% o-*"s! *!"%7es
31,3"",$&& 30,$$$,2#2
De.reciation 1142 1,"$1,31$ 1,3%&,#%0
morti;ation 1143 2!0,$2$ 2"#,#32
7ro*ision 5 8re*ersal9 a'ainst loans and ad*ances + net 104"42 82,&2&,%&39 $&0,#03
7ro*ision 5 8re*ersal9 (or dimintion in the *ale o( in*estments + net #43 8!,&3$9 83,0$$9
-ther .ro*ision 5 8re*ersal9 + net 1243 8"2,2&"9 81&%,30"9
Bad debts written o(( directly 104!41 + 20!
7ro*ision (or >orkers? >el(are Fnd 2# !$",%!$ !$1,0%"
Char'e 5 8re*ersal9 (or de(ined bene(it .lan 2& 81,311,%!%9 81,!0&,00&9
:ain on dis.osal o( (i/ed assets + net 2% 8$2,!&%9 822,"&!9
81,%#$,&"$9 #$0,1$3
(I*%e"se$ #e*%e"se i ope%"ti7 "ssets2#,"!0,!3$ 31,3&$,$3"
Lendin's to (inancial instittions 32!,&3$ 8"#!,3&"9
d*ances + net 8",&30,&!29812,&&&,$
9
-ther assets + net 82,%%&,%309 81,!#$,$!%9
I*%e"se (#e*%e"se$ i ope%"ti7 4i"&i4ities
8&,2&2,%"&981",1%#,3$1
9
Bills .ayable 2$2,$$2 $2#,$!!
Borrowin's 8$0,20",$#29 3#,132,0&"
De.osits and other acconts &%,2!#,""& "3,&%2,01&
-ther liabilities 82,"2#,33$9 2,0"",1%%
$$,%%%,1%$ #",$&&,%$!
De(ined bene(its .aid!!,0"",0"0
111,!#3,&$0
8%0!,3!19 83%0,%"!9
Recei.t (rom .ension (nd 1$,%31,& +
)ncome ta/ .aid 810,3"",0#%9 81$,!22,1329
Net *"s! 4os %o/ ope%"ti7 "*ti+ities !#,%2",$#0 #!,%00,#"2
C"s! 4os %o/ i+esti7 "*ti+ities
6et in*estments in ?a*ailable (or sale? secrities 8"1,033,23"98&1,3&!,2%!
9
6et in*estments in ?held to matrity? secrities $0",#%" 1,2!0,1%2
)n*estment in sbsidiary com.any + 8#$,2##9
Di*idends recei*ed #$0,%$" 1,1#&,$&"
)n*estments in o.eratin' (i/ed assets 8$,!!3,1#!9 83,$0$,!#&9Sale .roceeds o( .ro.erty and [email protected] dis.osed o(( 1%3,0 "%,&31
Net *"s! 4os %o/ i+esti7 "*ti+ities 8"$,1%!,!2298&2,3!&,%&"
9
C"s! 4os %o/ i"*i7 "*ti+ities
Di*idend .aid 812,!%3,33$9 811,&1$,#%39
Net *"s! 4os %o/ i"*i7 "*ti+ities 812,!%3,33$9811,&1$,#%3
9
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"%,1%3,"%# "$,%2%,%&$
Ee*ts o e)*!"7e %"te *!"7es o *"s! "# *"s! e5ui+"4ets !0#,!01 "!",$!#
Cash and cash e@i*alents at end o( the year 3$
"%,%&3,1&0 "",2#3,2"3
!0,&"%,12$ "%,%&3,1&0
he anne/ed notes 1 to $! and nne/res ) to (orm an inte'ral .art o( these (inancial statements4
P%esi#et "# C!ie E)e*uti+e Di%e*to% Di%e*to%
Di%e*to%
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MCB BANK LIMITED
STATEMENT OF CAN9ES IN E:IT.FOR TE .EAR ENDED DECEMBER 31, 2013
S!"%e
C"pit"4%ese%+es Re+eue Rese%+es Tot"4
Rese%+e o%
S!"%e
E)*!"7e
St"tuto%' 9ee%"4"pp%op%i"te
#
*"pit"4 issue o t%"s4"tio
p%e/iu/ %ese%+e %ese%+e p%oit&ous
s!"%es %ese%+e--------------------------------------------------------------- (Rupees i t!ous"#$ ---------------------------------------------------------------
B"4"*e "s "t De*e/&e% 31, 2011 &,3!2,3!" + #,%02,"2& $2%,0$# 13,$"!, 1&,!00,000 2&,3!!,1%1 %&,#1",003
;,1>2 1?,?00,< 1;,=00,000
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For details o( di*idend declaration and a..ro.riations, .lease re(er note $" to these (inancial statements4
he anne/ed notes 1 to $! and nne/res ) to (orm an inte'ral .art o( these (inancial statements4
P%esi#et "# C!ie E)e*uti+e Di%e*to% Di %e*to% Di%e*to%
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MCB BANK LIMITED
NOTES TO TE FINANCIAL STATEMENTSFOR TE .EAR ENDED DECEMBER 31, 2013
1. STATS AND NATRE OF BSINESS
MCB Bank Limited 8the ?Bank?9 is a bankin' com.any incor.orated in 7akistan and is en'a'ed incommercial bankin' and related ser*ices4 he Bank?s ordinary shares are listed on all the stocke/chan'es in 7akistan whereas its :lobal De.ository Recei.ts 8:DRs9 re.resentin' two ordinaryshares 82012= two ordinary shares9 are traded on the )nternational -rder Book 8)-B9 system o( theLondon Stock
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he State Bank o( 7akistan has de(erred the a..licability o( )nternational ccontin' Standard 8)S9 3#,?Financial )nstrments= Reco'nition and Measrement? and )S $0, ?)n*estment 7ro.erty? (or Bankin'Com.anies thro'h BSD Circlar 6o4 10 dated 'st 2!, 20024 he Secrities and
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+ )FS 3 + 7ro(it and Loss Sharin' on De.ositsAanary 01,201$
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here are other new and amended standards and inter.retations that are mandatory (or theBank?s accontin' .eriods be'innin' on or a(ter Aanary 1, 201$ bt are considered not to berele*ant or do not ha*e any si'ni(icant e((ect on the Bank?s o.erations and are there(ore notdetailed in these (inancial statements4
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BASIS OF MEASREMENT
4.1 hese (inancial statements ha*e been .re.ared nder the historical cost con*ention e/ce.t thatcertain classes o( (i/ed assets are stated at re*aled amonts and certain in*estments and
commitments in res.ect o( certain (orward e/chan'e contracts ha*e been marked to market and
are carried at (air *ale4
4.2 he (inancial statements are .resented in 7ak R.ees, which is the Bank?s (nctional and.resentation crrency4 he amonts are ronded o(( to the nearest thosand4
4.3 C%iti*"4 "**outi7 esti/"tes "# 8u#7/ets
he .re.aration o( (inancial statements in con(ormity with the a..ro*ed accontin' standardsre@ires the se o( certain critical accontin' estimates4 )t also re@ires the mana'ement toe/ercise its d'ment in the .rocess o( a..lyin' the Bank?s accontin' .olicies4 hile assessin' this re@irement *arios
(actors incldin' the delin@ency in the accont, (inancial .osition o( the borrowers and the
re@irements o( the 7rdential Re'lations are considered4
he amont o( 'eneral .ro*ision is determined in accordance with the rele*ant re'lations
and mana'ement?s d'ment as e/.lained in notes 104"43 and 104"4"4
3) I/p"i%/et o "+"i4"&4e o% s"4e e5uit' i+est/ets
he Bank determines that ?a*ailable (or sale? e@ity in*estments are im.aired when there has
been a si'ni(icant or .rolon'ed decline in the (air *ale below its cost4 he determination o(what is si'ni(icant or .rolon'ed re@ires d'ment4 )n makin' this d'ment, the Banke*alates amon' other (actors, the normal *olatility in share .rice4 )n addition, the im.airment
may be a..ro.riate when there is an e*idence o( deterioration in the (inancial health o( thein*estee and sector .er(ormance, chan'es in technolo'y and o.erational5(inancial cash (lows4
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T")"tio
)n makin' the estimates (or income ta/es crrently .ayable by the Bank, the mana'ement
considers the crrent income ta/ laws and the decisions o( a..ellate athorities on certain
isses in the .ast4
4) F"i% +"4ue o #e%i+"ti+es
he (air *ales o( deri*ati*es which are not @oted in acti*e markets are determined by sin'
*alation techni@es4 he *alation techni@es take into accont the rele*ant interest rates at
the balance sheet date and the rates contracted4
5) Dep%e*i"tio, "/o%ti"tio "# %e+"4u"tio o ope%"ti7 i)e# "ssets
)n makin' estimates o( the de.reciation 5 amorti;ation method, the mana'ement ses themethod which re(lects the .attern in which economic bene(its are e/.ected to be consmedby the Bank4 he method a..lied is re*iewed at each (inancial year end and i( there is achan'e in the e/.ected .attern o( consm.tion o( the (tre economic bene(its embodied inthe assets, the method is chan'ed to re(lect the chan'ed .attern4 Sch chan'e is acconted(or as chan'e in accontin' estimates in accordance with )nternational ccontin' Standard8)S9 & ccontin' 7olicies, Chan'es in ccontin'
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A+"i4"&4e o% s"4e
hese are in*estments, other than those in sbsidiaries and associates, that do not (all nder
the ?held (or tradin'? or ?held to matrity? cate'ories4
)n*estments are initially reco'ni;ed at cost which in case o( in*estments other than ?held (or
tradin'? inclde transaction costs associated with the in*estment4
ll .rchases and sales o( in*estments that re@ire deli*ery within the time (rame established
by re'lation or market con*ention are reco'ni;ed at the trade date4 rade date is the date on
which the Bank commits to .rchase or sell the in*estment4
)n accordance with the re@irements o( the State Bank o( 7akistan, @oted secrities, otherthan those classi(ied as ?held to matrity?, in*estments in sbsidiaries and in*estments inassociates are sbse@ently re+measred to market *ale4 Sr.ls 5 8de(icit9 arisin' on
re*alation o( @oted secrities which are classi(ied as ?a*ailable (or sale?, is taken to ase.arate accont which is shown in the balance sheet below e@ity4 Sr.ls 5 8de(icit9 arisin'
on re*alation o( @oted secrities which are classi(ied as ?held (or tradin'?, is taken to the.ro(it and loss accont, crrently4
n@oted e@ity secrities 8e/cldin' in*estments in sbsidiaries and associates9 are *aled
at the lower o( cost and break+. *ale4 Break+. *ale o( e@ity secrities is calclated with
re(erence to the net assets o( the in*estee com.any as .er the latest a*ailable adited
(inancial statements4 )n*estments classi(ied as ?held to matrity? are carried at amorti;ed cost4
ssociates are all entities o*er which the :ro. has si'ni(icant in(lence bt not control4Sbsidiaries are all entities o*er which the :ro. has the .ower to 'o*ern the (inancial ando.eratin' .olicies accom.anyin' a shareholdin' o( more than one hal( o( the *otin' ri'hts
)n*estments in sbsidiaries and in*estments in associates are carried at cost lessaccmlated im.airment losses, i( any4
7ro*ision (or im.airment in the *ales o( secrities 8e/ce.t debentres, .artici.ation term
certi(icates and term (inance certi(icates9 is made crrently4 7ro*isions (or im.airment in *ale
o( debentres, .artici.ation term certi(icates and term (inance certi(icates are made as .er the
re@irements o( the 7rdential Re'lations issed by the State Bank o( 7akistan4
5.2 S"4e "# %epu%*!"se "7%ee/ets
Secrities sold sbect to a re.rchase a'reement 8re.o9 are retained in the (inancial statements
as in*estments and the conter .arty liability is inclded in borrowin's4 Secrities .rchasednder an a'reement to resell 8re*erse re.o9 are not reco'ni;ed in the (inancial statements asin*estments and the amont e/tended to the conter .arty is inclded in lendin's to (inancial
instittions4 he di((erence between the .rchase 5 sale and re+sale 5 re+.rchase .rice isreco'ni;ed as mark+. income 5 e/.ense on a time .ro.ortion basis, as the case may be4
5.3 A#+"*es
d*ances are stated net o( s.eci(ic and 'eneral .ro*isions4 S.eci(ic .ro*ision is determined onthe basis o( the 7rdential Re'lations and other directi*es issed by the State Bank o( 7akistan
8SB79 and char'ed to the .ro(it and loss accont4 7ro*isions are held a'ainst identi(ied as well asnidenti(ied losses4 7ro*isions a'ainst nidenti(ied losses inclde 'eneral .ro*ision a'ainst
Consmer and Small
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Ope%"ti7 i)e# "ssets "# #ep%e*i"tio
7ro.erty and [email protected], other than land carryin' *ale o( which is not amorti;ed, are stated at
cost or re*aled amont less accmlated de.reciation and accmlated im.airment losses, i(
any4 Land is carried at re*aled amont4 Cost o( .ro.erty and [email protected] o( (orei'n o.erations
incldes e/chan'e di((erences arisin' on crrency translation at year+end rates4
Ca.ital work+in+.ro'ress is stated at cost less accmlated im.airment losses, i( any4 hese are
trans(erred to s.eci(ic assets as and when assets become a*ailable (or se4
De.reciation on all o.eratin' (i/ed assets is char'ed sin' the strai'ht line method in accordancewith the rates s.eci(ied in note 1142 to these (inancial statements and a(ter takin' into accont
residal *ale, i( any4 he residal *ales, se(l li*es and de.reciation methods are re*iewed
and adsted, i( a..ro.riate, at each balance sheet date4
De.reciation on additions is char'ed (rom the month the assets are a*ailable (or se while no
de.reciation is char'ed in the month in which the assets are dis.osed o((4
Sr.ls on re*alation o( land and bildin's is credited to the sr.ls on re*alation accont4
Re*alation is carried ot with s((icient re'larity to ensre that the carryin' amont o( assets
does not di((er materially (rom the (air *ale4 o the e/tent o( the incremental de.reciation
char'ed on the re*aled assets, the related sr.ls on re*alation o( land and bildin's 8net o(
de(erred ta/ation9 is trans(erred directly to na..ro.riated .ro(it4
:ains 5 losses on sale o( .ro.erty and [email protected] are credited 5 char'ed to the .ro(it and loss
accont crrently, e/ce.t that the related sr.ls on re*alation o( land and bildin's 8net o(
de(erred ta/ation9 is trans(erred directly to na..ro.riated .ro(it4
Sbse@ent costs are inclded in the asset?s carryin' amont or are reco'ni;ed as a se.arate
asset, as a..ro.riate, only when it is .robable that (tre economic bene(its associated with the
item will (low to the Bank and the cost o( the item can be measred reliably4 ll other re.airs and
maintenance are char'ed to the .ro(it and loss accont4
5.4.1 It"7i&4e "ssets
)ntan'ible assets are stated at cost less accmlated amorti;ation and accmlated im.airmentlosses, i( any4 )ntan'ible assets are amorti;ed (rom the month when these assets are a*ailable
(or se, sin' the strai'ht line method, whereby the cost o( the intan'ible assets are amorti;ed
o*er its estimated se(l li*es o*er which economic bene(its are e/.ected to (low to the Bank4
he se(l li*es are re*iewed and adsted, i( a..ro.riate, at each balance sheet date4
5.4.2 Le"ses (I8"%"!$
ssets leased ot nder ?)arah? are stated at cost less accmlated de.reciation and
accmlated im.airment losses, i( any4 ssets nder )arah are de.reciated o*er the .eriod o(
lease term4 Eowe*er, in the e*ent the asset is e/.ected to be a*ailable (or re+iarah, de.reciation
is char'ed o*er the economic li(e o( the asset sin' strai'ht line basis4
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I/p"i%/et
he carryin' amont o( assets are re*iewed at each balance sheet date (or im.airment whene*ere*ents or chan'es in circmstances indicate that the carryin' amonts o( the assets may not bereco*erable4 )( sch indication e/ists and where the carryin' *ale e/ceeds the estimatedreco*erable amont, assets are written down to their reco*erable amonts4 Reco*erable amontis the 'reater o( net sellin' .rice and *ale in se4 he resltin' im.airment loss is taken to the.ro(it and loss accont e/ce.t (or im.airment loss on re*aled assets, which is adsted a'ainstthe related re*alation sr.ls to the e/tent that the im.airment loss does not e/ceed the sr.lson re*alation o( that asset4
5.5 St" %eti%e/et &eeits
he Bank o.erates the (ollowin' sta(( retirement bene(its (or its em.loyees=
1) For clerical 5 non+clerical sta(( who did not o.t (or the new scheme, the Bank o.erates the(ollowin'=
1- an a..ro*ed contribtory .ro*ident (nd
2- an a..ro*ed 'ratity scheme and
3- a contribtory bene*olent scheme
2) For clerical 5 non+clerical sta(( who oined the Bank a(ter the introdction o( the new schemeand (or others who o.ted (or the new scheme introdced in 1#%", the Bank o.erates the
(ollowin'=
1- an a..ro*ed non+contribtory .ro*ident (nd introdced in lie o( the contribtory.ro*ident (nd
2- an a..ro*ed .ension (nd and
3- contribtory bene*olent scheme
3) For o((icers who oined the Bank a(ter the introdction o( the new scheme and (or others who
o.ted (or the new scheme introdced in 1#%%, the Bank o.erates the (ollowin'=
1- an a..ro*ed non+contribtory .ro*ident (nd introdced in lie o( the contribtory.ro*ident (nd and
2- an a..ro*ed .ension (nd4
3- contribtory bene*olent (nd4
Eowe*er, the mana'ement has re.laced the .ension bene(its (or em.loyees in the o((icer
cate'ory with a contribtory .ro*ident (nd (or ser*ices rendered a(ter December 31, 20034
4) For e/ecti*es and o((icers who oined the Bank on or a(ter Aanary 01, 2000, the Banko.erates an a..ro*ed contribtory .ro*ident (nd4
5) 7ost retirement medical bene(its to entitled em.loyees4
nnal contribtions towards the de(ined bene(it .lans and schemes are made on the basis o(
actarial ad*ice sin' the 7roected nit Credit Method4 he abo*e bene(its are .ayable to sta((
at the time o( se.aration (rom the Bank?s ser*ices sbect to the com.letion o( @ali(yin' .eriod o(
ser*ice4
7ast ser*ice cost is the chan'e in the .resent *ale o( the de(ined bene(it obli'ation resltin'
(rom a .lan amendment or crtailment4 he Bank reco'nise .ast ser*ice cost as an e/.ense at
the earlier o( the (ollowin' dates=
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(1)when the .lan amendment or crtailment occrs
(2)and when the Bank reco'nises related restrctrin' costs or termination bene(itsE/p4o'ees *o/pes"te#"&se*es
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Liability in res.ect o( em.loyees? com.ensated absences is acconted (or in the year in which these areearned on the basis o( actarial *alation carried ot sin' the 7roected nit Credit Method4
Drin' the crrent year, the Bank has chan'ed its accontin' .olicy in res.ect o( .ost retirementde(ined bene(its .lans as re@ired nder )nternational ccontin' Standard 8)S9 1#, ?
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T")"tio Cu%%et
7ro*ision (or crrent ta/ation is based on ta/able income at the crrent rates o( ta/ation a(ter
takin' into consideration a*ailable ta/ credits and rebates4 he char'e (or crrent ta/ also
incldes adstments where considered necessary, relatin' to .rior years which arise (rom
assessments (ramed 5 (inali;ed drin' the year4
Dee%%e#
De(erred ta/ is reco'nised sin' the balance sheet liability method on all tem.orary di((erencesbetween the amonts attribted to assets and liabilities (or (inancial re.ortin' .r.oses and
amonts sed (or ta/ation .r.oses4 he Bank records de(erred ta/ assets 5 liabilities sin' theta/ rates, enacted or sbstanti*ely enacted by the balance sheet date e/.ected to be a..licableat the time o( its re*ersal4 De(erred ta/ asset is reco'nised only to the e/tent that it is .robablethat (tre ta/able .ro(its will be a*ailable a'ainst which the asset can be tilised4 De(erred ta/assets are redced to the e/tent that it is no lon'er .robable that the related ta/ bene(it will berealised4 he Bank also reco'nises de(erred ta/ asset 5 liability on de(icit 5 sr.ls on re*alationo( secrities and de(erred ta/ liability on sr.ls on re*alation o( (i/ed assets which is adsteda'ainst the related de(icit 5 sr.ls in accordance with the re@irements o( )nternationalccontin' Standard 8)S9 12, ?)ncome a/es?4
De(erred ta/ liability is not reco'ni;ed in res.ect o( ta/able tem.orary di((erences associated with
e/chan'e translation reser*es o( (orei'n o.erations, where the timin' o( the re*ersal o( the
tem.orary di((erence can be controlled and it is .robable that the tem.orary di((erences will not
re*erse in the (oreseeable (tre4
5.7 P%o+isios
7ro*isions are reco'ni;ed when the Bank has a le'al or constrcti*e obli'ation as a reslt o( .ast
e*ents and it is .robable that an ot(low o( resorces will be re@ired to settle the obli'ation and
a reliable estimate o( the amont can be made4 7ro*isions are re*iewed at each balance sheet
date and are adsted to re(lect the crrent best estimates4
5.8 Fo%ei7 *u%%e*ies
5.9.1 Fo%ei7 *u%%e*' t%"s"*tios
ransactions in (orei'n crrencies other than the reslts o( (orei'n o.erations discssed in note"4#42 are translated to R.ees at the (orei'n e/chan'e rates .re*ailin' on the transaction date4
Monetary assets and liabilities in (orei'n crrencies are e/.ressed in R.ee terms at the rates o(e/chan'e .re*ailin' at the balance sheet date4 Forei'n bills .rchased and (orward (orei'n
e/chan'e contracts other than those relatin' to (orei'n crrency de.osits are *aled at the ratesa..licable to their res.ecti*e matrities4
5.9.2 Fo%ei7 ope%"tios
he assets and liabilities o( (orei'n branches are translated to R.ees at e/chan'e rates
.re*ailin' at the balance sheet date4 he reslts o( (orei'n o.erations are translated to R.ees at
the a*era'e rate o( e/chan'e (or the year4
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T%"s4"tio 7"is "# 4osses
ranslation 'ains and losses are inclded in the .ro(it and loss accont, e/ce.t those arisin' on
the translation o( the Bank?s net in*estment in (orei'n branches, which are taken to the ca.ital
reser*e 8e/chan'e translation reser*e9 ntil the dis.osal o( the net in*estment, at which time
these are reco'nised in the .ro(it and loss accont4
5.9.3 Co//it/ets
Commitments (or otstandin' (orward (orei'n e/chan'e contracts are disclosed in these (inancialstatements at committed amonts4 Contin'ent liabilities 5 commitments (or letters o( credit and
letters o( 'arantee denominated in (orei'n crrencies are e/.ressed in R.ee terms at the rates
o( e/chan'e .re*ailin' at the date o( the statement o( (inancial .osition4
5.10 A**ept"*esCommitments (or otstandin' (orward (orei'n e/chan'e contracts are disclosed in these (inancialstatements at committed amonts4 Contin'ent liabilities 5 commitments (or letters o( credit andletters o( 'arantee denominated in (orei'n crrencies are e/.ressed in R.ee terms at the rateso( e/chan'e .re*ailin' at the date o( the statement o( (inancial .osition4
5.11 Re+eue %e*o7itio
1- Mark+. 5 interest on ad*ances and retrns on in*estments are reco'ni;ed on a time.ro.ortion basis sin' the e((ecti*e interest method e/ce.t that mark+. 5 interest on non+.er(ormin' ad*ances and in*estments is reco'ni;ed on a recei.t basis, in accordance withthe re@irements o( the 7rdential Re'lations issed by the State Bank o( 7akistan 8SB79 oras .ermitted by the re'lations o( the o*erseas re'latory athorities o( contries where thebranches o.erate4 >here debt secrities are .rchased at .remim or discont, sch.remim 5 discont is amorti;ed thro'h the .ro(it and loss accont o*er the remainin' .eriodo( matrity4
2- Financin' method is sed in accontin' (or income (rom lease (inancin'4 nder this method,the nearned lease income 8e/cess o( the sm o( total lease rentals and estimated residal*ale o*er the cost o( leased assets9 is de(erred and taken to income o*er the term o( thelease .eriod so as to .rodce a constant .eriodic rate o( retrn on the otstandin' netin*estment in lease4 :ains 5 losses on termination o( lease contracts are reco'ni;ed as
income when these are reali;ed4
3- )arah income is reco'ni;ed on an accral basis as and when the rental becomes de4
4- Commission income is reco'ni;ed on a time .ro.ortion basis4
5- Di*idend income is reco'ni;ed when the Bank?s ri'ht to recei*e di*idend is established4
6- :ain 5 loss on sale o( in*estments is credited 5 char'ed to .ro(it and loss accont crrently4
5.12 Ope%"ti7 4e"ses
-.eratin' lease rentals are recorded in .ro(it and loss accont on a time .ro.ortion basis o*erthe term o( the lease arran'ements4
5.13 Assets "*5ui%e# i s"tis"*tio o *4"i/s
he Bank occasionally ac@ires assets in settlement o( certain ad*ances4 hese are stated at
lower o( the carryin' *ale or crrent (air *ale o( sch assets4
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C"s! "# *"s! e5ui+"4ets
Cash and cash e@i*alents inclde cash and balances with treasry banks and balances with
other banks 8net o( o*erdrawn 6ostro balances9 in crrent and de.osit acconts4
5.14 Fi"*i"4 ist%u/ets
5.15.1 Fi"*i"4 "ssets "# i"*i"4 4i"&i4ities
Financial instrments carried on the statement o( (inancial .osition inclde cash and balanceswith treasry banks, balances with other banks, lendin's to (inancial instittions, in*estments
8e/cldin' in*estment in associates and sbsidiaries9, ad*ances, other assets, bills .ayable,borrowin's, de.osits and other liabilities4 he .articlar reco'nition methods ado.ted (orsi'ni(icant (inancial assets and (inancial liabilities are disclosed in the indi*idal .olicy statementsassociated with these assets and liabilities4
5.15.2 De%i+"ti+e i"*i"4 ist%u/ets
Deri*ati*e (inancial instrments are initially reco'ni;ed at (air *ale on the date on which a
deri*ati*e contract is entered into and are sbse@ently remeasred at their (air *ale sin'
*alation techni@es4 ll the deri*ati*e (inancial instrments are carried as an asset when the (air*ale is .ositi*e and as a liability when the (air *ale is ne'ati*e4 ny chan'e in the (air *ale o(
deri*ati*e (inancial instrments is taken to the .ro(it and loss accont crrently4
5.15.3 O setti7
Financial assets and (inancial liabilities are set o(( and the net amont is re.orted in the (inancial
statements when there is a le'ally en(orceable ri'ht to set o(( and the Bank intends either to
settle on a net basis, or to reali;e the assets and settle the liabilities, simltaneosly4
5.16 Bo%%oi7s #eposits
Borrowin's 5 de.osits are recorded at the .roceeds recei*ed4 he cost o( borrowin's 5 de.osits isreco'ni;ed as an e/.ense in the .eriod in which this is incrred4
5.17 Se7/et %epo%ti7
se'ment is a distin'ishable com.onent o( the Bank that is en'a'ed in .ro*idin' .rodcts or
ser*ices 8bsiness se'ment9 or in .ro*idin' .rodcts or ser*ices within a .articlar economic
en*ironment 8'eo'ra.hical se'ment9, which is sbect to risks and rewards that are di((erent (rom
those o( other se'ments4 he Bank?s .rimary (ormat o( re.ortin' is based on bsiness se'ments4
5.17.1 Busiess
se7/ets
Co%po%"te Fi"*e
Cor.orate Finance incldes nderwritin', secriti;ation, in*estment bankin', syndications, )7-
related acti*ities 8e/cldin' in*estments9 and secondary .ri*ate .lacements4
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T%"#i7 "# S"4es
)t incldes (i/ed income, e@ity, (orei'n e/chan'e commodities, lendin's to and borrowin's (rom
(inancial instittions and brokera'e debt4
Ret"i4 "# Cosu/e% B"i7
)t incldes retail lendin' and de.osits, bankin' ser*ices, .ri*ate lendin' and de.osits, bankin'
ser*ices and retail o((ered to its retail cstomers and small and medim enter.rises4
Co//e%*i"4 B"i7
)t incldes .roect (inance, e/.ort (inance, trade (inance, leasin', lendin', 'arantees and bills o(
e/chan'e relatin' to its cor.orate cstomers4
5.17.2 9eo7%"p!i*"4 se7/ets
he Bank o.erates in three 'eo'ra.hic re'ions bein'=
1- 7akistan
2- Soth sia
3- Middle ith 6ational Bank o( 7akistan in local crrencycrrent accont 1",!!3,&"! 1",23!,$0$
"#,#$!,1"0 "%,$20,12#
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his incldes national .ri;e bonds amontin' to Rs4 11&4%3% million 82012= Rs4 11!40%3 million94
6.1 De.osits with SB7 are maintained to com.ly with their re@irements issed (rom time to time4De.osits with other central banks are maintained to meet their minimm cash reser*es and
ca.ital re@irements .ertainin' to the (orei'n branches o( the Bank4
6.2 his re.resents S Dollar settlement accont maintained with SB74
Note 2013 2012
(Rupees i t!ous"#$
? BALANCES 6IT OTER BANKS
-tside 7akistan
+ crrent accont 1,0"2,"32 #%&,#30
+ de.osit accont %41 $&$,$1$ 213,0$$
1,"3!,#$! 1,1#1,#%$
7.1 Balances with other banks otside 7akistan in de.osit acconts carry interest rate 243"G .erannm 82012= 041!G to $42"G .er annm94
Note 2013 2012
(Rupees i t!ous"#$
; LENDIN9S TO FINANCIAL INSTITTIONS
Call money lendin's &42 H &43 !!$,2!1 +
Re.rchase a'reement lendin's &42 H &43 "!0,3%% 1,""1,$%2
1,22$,!3& 1,""1,$%2
;1 P"%ti*u4"%s o 4e#i7s
)n local crrency ##!,%!! 1,$&2,#%3
)n (orei'n crrencies 22%,&%2 !&,$##
1,22$,!3& 1,""1,$%2
;2 hese carry mark . rates ran'in' (rom !4"0G to 10G .er annm 82012 = %4"0G to #41"G94;3 Se*u%ities !e4# "s *o44"te%"4 "7"ist 4e#i7s to i"*i"4
istitutios
2013201
2
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e4# &'Fu%t!
e% Tot"4 e4# &'Fu%t!
e% Tot"
&"7i+e
"s &"7i+e
"s*o44"te
%"4
(Rupees i t!ous"#$
*o44"te%"4
-------------------------------------
Market reasry Bills "!0,3%% + "!0,3%% 1,""1,$%2 + 1,""1
"!0,3%% + "!0,3%% 1,""1,$%2 + 1,""1
9. INESTMENTS - NET
>1 I+est/ets &' t'pes
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2013201
2
Note e4# &'9i+e
"s Tot"4 e4# &' 9i+e "s Tot"4Ae)u
%e &"*o44"te
%"4 &" *o44"te%"4---------------------------------
-------(Rupees it!ous"#$----------------------------------------
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Note
>2 I+est/ets &' se7/ets
Ae)u%e
Fe#e%"4 9o+e%/et Se*u%ities
+ Market reasry Bills #4$
+ 7akistan )n*estment Bonds #4$
+
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>< :u"4it' o "+"i4"&4e o% s"4e se*u%ities
Note
2013
M"%et+"4ue
C%e#it%"ti7
M"%et
----------------------------(Rupeesi
t!ous"#$---------------------------
M"%et T%e"su%' Bi44s#4$41 321,1"0,$"! nrated 2#0,"0",$%%
P"ist" I+est/et Bo#s
#4$4
1 10%,%20,"!" nrated &!,1!!,#3"
Liste# Te%/ Fi"*e Ce%tii*"tes
skari Bank Limited +2"3,321 2%",%"$
Bank l(alah Limited "2%,$&0 + "22,%12
llied Bank Limited 20",0&1 23%,013
nited Bank Limited + %%%,3&0
6)B Bank limited + 1!%,11&
7ak rab Fertili;ers Limited + 30,011
#&",&&2 2,00#,#&&
S!"%es i Liste# Co/p"ies
bbott Laboratories 7akistan Limited 6ota*ailable2",&1$ 1#,!$"
isha Steel Mills Limited 1,3$" + H 2
llied Bank Limited %#$,%3&I H1I $#!,%"$
ri( Eabib Limited 3,0!%6ot
a*ailable
ri( Eabib Cor.oration Limited $1,1&& H 1I $$,!"0
ttock Cement 7akistan Limited 2,%"$6ot
a*ailable
ttock 7etrolem Limited $#$,#0!6ot
a*ailable $20,%"!
ttock Re(inery Limited + 3%,2%0
Bank l(alah Limited &,112 H 1I
Bank l+Eabib Limited "33,#%%I H1I 201,#"#
rchroma 7akistan Limited 8Formerly Clariant 7akistanLimited9 3$,$10
6ota*ailable 1$,"2$
Fai Cement Com.any Limited 22,3306ot
a*ailable
Fai Fertili;er Bin Jasim Com.any Limited 1!&,#0#6ot
a*ailable 112,3%$
Fai Fertili;er Com.any Limited 1,123,1&36ot
a*ailable 1,1%",1$&
First l + 6oor Modaraba 2%,%!!6ot
a*ailable 2$,##0
Eabib Bank Limited 111,!!# H 1I 31%,&!#
Eabib Metro.olitan Bank Limited 2,&&3 I H 1I
Eb 7ower Com.any Limited 230,1#0 I H 1I 1&,0#!
):) )nsrance Limited 11,"0%
)nds Motors Com.any Limited #,000
6ot
a*ailableohinoor
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2013 2012
Note M"%et +"4ue
C%e#it%"ti7
M"%et +"4ue C%e#it%"ti7
----------------------------(Rupees i t!ous"#$-------------------------------
Balance bro'ht (orward
7akistan -il(ields Limited
7akistan 7etrolem Limited
7akistan State -il Com.any Limited
7akistan elecommnication Com.any Limited
7akistan obacco Com.any Limited
Ra(han Mai;e 7rodcts Limited
R.ali 7olyester Limited
Samba Bank Limited
Searle 7akistan Limited
KK Si 6orthern :as 7i.elines Limited
K rst Secrities H Brokera'e Limited
nile*er 7akistan Limited
nile*er 7akistan Foods Limited
nited Bank Limited
l(i@ar )ndstries Limited
Ope E#e# Mutu"4 Fu#
Metro+Bank 7akistan So*erei'n Fnd7er.etal8MSF9MCB Dynamic Stock Fnd
S!"%es i -4iste# Co/p"ies
K 6ational )n*estment rst Limited
K SM< Bank Limited
First Ca.ital )n*estment 87ri*ate9 Limited
7ak sian Fnd
K rabian Sea Contry Clb
K Central De.ository Com.any o( 7akistan LimitedK 6ational )nstittional Facilitation echnolo'ies 87ri*ate9Limited
Society (or >orldwide )nter Fnd rans(er 8S>)F9
Fa;al Cloth Mills Limited + .re(erence share
)slamabad Stock
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3,$12,&3! nrated
3,!%2 M2+
3#3,23$,$&1
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hese are :o*ernment o( 7akistan 'aranteed secrities4
9.4.1 )n*estments in nlisted com.anies are stated at carryin' *ale4 he abo*e e/cldes nlisted
shares o( com.anies which are (lly .ro*ided (or in these (inancial statements4
1* hese are the strate'ic in*estments o( the Bank4
1* his incldes 3%42#2 million shares *alin' Rs4 %#$430# million 82012= 334#01 million shares *ali
%&&420% million9 which are held as strate'ic in*estment by the Bank4
9.5 *ailable (or sale Market reasry Bills and 7akistan )n*estment Bonds are eli'ible (orrediscontin' with the State Bank o( 7akistan4 he market *ale o( Market reasry Bills classi(ied
as ?held to matrity? as at December 31, 2013 amonted to Rs4 1,%204&%" million 82012= Rs4 &3#41%#
million94
9.6 )n*estment o( the Bank in damee )nsrance Com.any Limited is carried at cost amontin' to Rs4#$34!00 million 82012= Rs4 #$34!00 million9 as at December 31, 20134 he market *ale o( the
in*estment in damee )nsrance Com.any Limited as at December 31, 2013 amonted to Rs4
3,&0#4#0! million 82012= Rs4 2,$""433! million94
9.7 )n*estments inclde 7akistan )n*estment Bonds amontin' to Rs4 2324!0 million 82012= Rs4 2324!0million9 earmarked by the SB7 and 6ational Bank o( 7akistan a'ainst 5 DD discontin' (acilities
and demand note (acilities sanctioned to the Bank4 )n addition, 7akistan )n*estment Bonds
amontin' to Rs4 " million 82012= Rs4 " million9 ha*e been .led'ed with the Controller o( Military
cconts on accont o( Re'imental Fnd accont4
9.8 )n(ormation relatin' to in*estments in ordinary shares and .re(erence shares o( listed com.anies
and nlisted com.anies re@ired to be disclosed as .art o( the (inancial statements nder BSD
Circlar 6o40$ o( 200! dated Febrary 1%, 200!, is 'i*en in nne/re )4
9.9 Certain a..ro*ed 5 :o*ernment secrities are ke.t with the SB7 to meet stattory li@idity
re@irements calclated on the basis o( domestic demand and time liabilities4
Note 2013 2012
(Rupees i t!ous"#$
1
0 ADANCES - NET
Loans, cash credits, rnnin' (inances, etc4
)n 7akistan 230,1#0,1$$ 22%,&"#,3$$
-tside 7akistan 13,#$3,%1& 12,!"#,"10
2$$,133,&!2 2$0,"1&,&"$
)slamic Financin' and related assets 1042 11,303,#!! #,#&3,$1%
6et in*estment in (inance lease 1043
)n 7akistan 1,02%,#11 1,00$,%!1
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minimm lease
.ayments $1!,#%& %1#,$!% + 1,13!,$$" 331,$#% &3",%3# + 1,1!%,23!
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d*ances inclde Rs423,2!%4%33 million 82012= Rs4 2","!14%%$ million9 which ha*e been .laced nder the non+.er(ormin' stats as detailed below=
2013
C"te7o%' o
Note C4"ssiie# A#+"*es Spe*ii* P%o+isio Re5ui%e# Spe*ii* P%o+isio e4#
C4"ssii*"tioDo/esti*
O+e%se"s Tot"4
Do/esti* O+e%se"s Tot"4 Do/esti*
O+e%se"s Tot"4
---------------------------------------------------------------
(Rupees i t!ous"#$---------------------------------------------------------------
-ther ssets
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7ro*ision made drin' the year$,&&1,2"
$ #,322 + &,3$"$,&,#2
1
Re*ersals8$,3!",2$
!9 8"2,%%298$,$1&,01
&9
"1!,00& #,322 8"2,%%29 &,3$" $&0,#03
monts written o(( 104!41 810!,$009 810!,$009
Closin' balance22,3&0,0
&% 2"%,$"% 1$","!& 2",#1122,&0#,0
23
2013 2012
Spe*ii* 9ee%"4 Tot"4 Spe*ii* 9ee%"4 Tot"4
(tot"4$
(Rupees i t!ous"#$
(tot"4$
10@1 P"%ti*u4"%s o p%o+isios "7"ist "#+"*es
--------------------------
)n local crrency 1!,#"2,313 $!#,21$1%,$21,"2
% 20,1%2,11" $03,02"20,"%",1
$0
)n (orei'n crrencies 2,$#%,&3" 2#,#31 2,"2%,%!! 2,20%,#%2 2",#112,233,&&
3
1#,$"0,1$& $##,1$"1#,#$#,2#
322,3&0,0&
% $2&,#3!22,&0#,0
23
Note 2013 2012
10@2 he (ollowin' amonts ha*e been char'ed to the .ro(it and lossaccont=
(Rupees it!ous"#$
S.eci(ic .ro*ision82,%,$
#09 "1!,00&
:eneral .ro*ision 104"43 10,$03 #,322
:eneral .ro*ision a'ainst consmer H Small
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:eneral .ro*ision a'ainst ad*ances re.resents .ro*ision maintained at arond 041G o( 'ross ad*ances4
10.5.3 State Bank o( 7akistan *ide BSD Circlar 6o4 2 dated Aanary 2%, 200#, BSD Circlar 6o4 10 dated -ctober20, 200#, BSD Circlar 6o4 02 o( 2010 dated Ane 03, 2010 and BSD Circlar 6o41 o( 2011 dated -ctober
21, 2011 has allowed bene(it o( (orced sale *ale 8FS9 o( 7lant H Machinery nder char'e, .led'ed stock
and mort'a'ed residential, commercial H indstrial .ro.erties 8land and bildin' only9 held as collaterala'ainst 67Ls (or (i*e years (rom the date o( classi(ication4 Eowe*er, mana'ement has not taken the FS
bene(it in calclation o( s.eci(ic .ro*ision4
10.5.4 :eneral .ro*ision a'ainst consmer loans re.resents .ro*ision maintained at an amont e@al to 14"G o( the(lly secred .er(ormin' .ort(olio and "G o( the nsecred .er(ormin' .ort(olio as re@ired by the 7rdential
Re'lations issed by the SB74 :eneral .ro*ision a'ainst Small
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1
Ci*il works 1,2!0,$2% 1,032,"$#
d*ances to s..liers and contractors 1$#,!$2 2$0,&"2
-thers $%&,$3" 1&%,002
1,&&&,"0$ 1,$!0,$03
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P%ope%t' "# e5uip/et
2013
Des*%iptio
Cost Re+"4ue#"/out A**u/u4"te# #ep%e*i"tio
A##itiosC!"%7e o% t!e
'e"%
At
Net &oo+"4ue
Au%"te o
At G"u"%'01, (#ispos"4s$
Re+"4u"tio
Re+e%s"4#ue
T%"se%i
AtG"u"%'
(#ep%e*i"tio oRe+e%s"4 #ue
toT%"se%
i "t De*e/&e%
31,
#ep%e*o
At De*e/&e% 31,2013
#ispos"4s$e)*!"7e
De*e/&e% esti/"
2013 E)*!"7e "#su%p4u
sto
%e+"4u"tio (out$01,
2013
"# ot!e%
%e+"4u"tio (out$
31, 2013
2013
useu4 ot!e%
"#8ust/ets
"#8ust/ets
-----------------------------------------------------------------------------------------------
(Rupees it!ous"#$-----------------------------------------------------------------------------------------------
Land + Freehold 12,0"%,3## &0#,2#! 1,"0%,21% + 1$,3%3,#12 + + + + + 1$,3%3,#12 +
Land + Leasehold 120,100 +","3
2 + 12",!32 + + + + + 12",!32 +
Bildin's on (reehold land !,101,%$3 1,0!2,!#% "#2,2%3 8"2!,#$&9 "%,%31 %,2,$&! 2#","#% 213,0$% 8"2!,#$&9 1%,"$$ + %,2,$&!.to %year
+
1,##0 %!0
Bildin's on leasehold land "3&,& 1,&3! 1!,$!" 81$,0139 8$#3,###9 $#,##! 1&1,"!3 2,00% 81$,0139 81%0,31$9 + $#,##!.to "year
+ +
&0# %"%
Leasehold )m.ro*ementsK + 22",&$% + + $3!,2!& !!3,!1# 1"$,"&3 + 1"2,%%0 310,11" 3"3,"0$ 3 yea
+ +
1,"0$ 2,%!2
Frnitre and (i/tre #&2,$2% #%,21! + + 1,0%2,10$ "3&,2!! #%,3"0 + + !2&,3$1 $$3,%!3 10G
8#,"339 8!,%#09
1,##$ 8$&"9
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812",2209 8$!,"
2&,&!!,00# 3,$,0&0 2,121,$&% 8"$0,#!19 + 3$,000,30%%,0#!,%&
3 1,"$1,31$ 8"$0,#!19 +%,&&2,&
2!,11%,$1&
83"$,2$"9 8223,&$39
13,#3% #,"#!
K Leasehold )m.ro*ements ha*e been classi(ied se.arately (rom Bildin's on leasehold land4
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P%ope%t' "# e5uip/et
2012
Des*%iptio
Cost Re+"4ue#"/out A**u/u4"te# #ep%e*i"tio
Net &ooAu"4 %"
o
A##itios
C!"%7e o% t!e 'e"%
(#ep%e*i"tio o At +"4ue "t#ep%e*i"t
At G"u"%' 01, (#ispos"4s$ At
G"u"%'At De*e/&e% 31,
2012 #ispos"4s$ e)*!"7eDe*e/&
e%De*e/&e%
31, esti/"te2012 E)*!"7e "# 01, 2012
"# ot!e% 31, 2012 2012 useu4 4iot!e%"#8ust/ets
"#8ust/ets
-----------------------------------------------------------------------------------------
(Rupees it!ous"#$-----------------------------------------------------------------------------------------
Land + Freehold 10,%&&,123 1,2!#,2%! 12,0"%,3## + + + 12,0"%,3##
Land + Leasehold 120,100 + 120,100 + + + 120,100
Bildin's on (reehold land ","$2,!3% ""#,10! !,101,%$3 133,01! 1!2,"&1 2#","#% ",&0!,1$! .to %0 ye
Bildin's on leasehold land 30%,012 233,2#1 "3&,& 120,#0& %%,!20 1&1,"!3 3"%,33" 3 to "0 ye
+
81,$0"9 81!,#!"9
Frnitre and (i/tre #01,%%! &2,&"% #&2,$2% $32,210 10%,3%3 "3&,2!! $$$,1!1 10
82,23#9 81,3#09
33 %3
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ssets held nder )arah +
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he land and bildin's o( the Bank are re*aled in December 2013 by inde.endent *alers 8rch+e+Decon H Sardar
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so(tware 1,"00,"$# 3$&,311 1,&!1,$&! 1,0%&,%"3 2"#,#321,3"2,!!
1 "0&,&2" 33433
12,!2! 13,#%!
1,"00,"$# 3$&,311 1,&!1,$&! 1,0%&,%"3 2"#,#321,3"2,!!
1 "0&,&2"
12,!2! 13,#%!
Note 2013 2012
Restated
12 OTER ASSETS - NET(Rupees i t!ous"#$
)ncome 5 mark+. accred on ad*ances andin*estments + local crrency &,$03,#$" &,01#,10%
)ncome 5 mark+. accred on ad*ances and
in*estments + (orei'n crrencies 1#2,#2& &$,3&1
ccred income, ad*ances, de.osits, and other .re.ayments 1,0%",##2 #"#,!30
d*ance ta/ation 8.ayments less .ro*isions9 !,0&1,"21 10,$,"22
Com.ensation (or delayed income ta/ re(nds $$,&02 $$,&02
6on+bankin' assets ac@ired in satis(action o( claims 1241 1,#3#,1&$ 1,3#&,%03
nrealised 'ain on deri*ati*e (inancial instrments 1242 1,!$#,1!3 13$,33#Stationery and stam.s on hand !!,#10 $3,0!%
7re.aid e/chan'e risk (ee 2"% 1!#
Recei*able (rom the .ension (nd 3!43 ",&"$,20% 1&,$2&,$&3
-thers 2,%2#,121 2,!$",20!
2&,03&,030 $2,!"2,$0#
Less= 7ro*ision held a'ainst other assets 1243 1,0&1,%1" 1,131,#%%
2!,#"!,31" $1,"20,$32
12.1 he market *ale o( non+bankin' assets with carryin' *ale o( Rs4 1,&1$4#&1 million 82012= Rs4 1,2%!40#3 millio
net o( .ro*ision as .er the *alation re.orts dated December 31, 2013 amonted to Rs4 1,&314"#1 million 8201
Based on *alation as o( December 31, 2012 Rs4 1,3%$43## million94
12.2 %e"4ise# 7"i o #e%i+"ti+e i"*i"4 ist%u/ets
Cot%"*t Notio"4 "/out %e"4ise# 7"i
2013 2012 2013 2012---------------------------
(Rupees it!ous"#$---------------------------
nrealised 'ain on=
F -.tions 21!,3$$ + 1,0!2 +
Forward e/chan'e contracts #0,%!#,$$#22,1!#,$&! 1,!$&,101 13$,33#
#0,#&",%#322,1!#,$&! 1,!$#,1!3 13$,33#
2013 2012
(Rupees i t!ous"#$
12.3 P%o+isio !e4# "7"ist ot!e% "ssets
-.enin' balance Char'e (or the year
Re*ersal drin' the year
>rite o((drin' theyear
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reclassi(ication Closin' balance
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1,131,#%% 1,2,!&%
31,3%! "#,&"&
8&3,!!19 82$%,1!39
8"2,2&"9 81&%,30"9
8$0,0#19 812,32$9
$2,11$ $1,#1#
1,0&1,%1" 1,131,#%%
13. CONTIN9ENT ASSETS
here were no contin'ent assets o( theBank as at December 31, 2013 andDecember 31, 20124
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Note 2013 2012
(Rupees i t!ous"#$
1
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49/294
2013 2012
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1= DEPOSITS AND OTER ACCONTS
(Rupees i t!ous"#$
Custo/e%s
Fi/ed de.osits !0,"2$,01! &0,!$#,&$!
Sa*in' de.osits3$#,223,%2
& 2!&,#2%,0"2
Crrent acconts
20!,%20,%"
3 1&3,1%!,&$!Mar'in acconts 3,#3%,113 3,"20,$0$
!20,$0",!10 "3!,2%$,1$&
Fi"*i"4 istitutios
Remnerati*e de.osits &,0"&,0#$ !,0#0,&%&
6on+remnerati*e de.osits 3,&!!,"&2 2,!#",%02
11,#2$,!%! &,%&!,"&0!32,330,2&
! "$",0!0,%2&
1=1 P"%ti*u4"%s o #eposits
)n local crrency"#!,310,!3
# "1",!0%,#2%
)n (orei'n crrencies 3!,01#,!$% 2#,$"2,&01!32,330,2&
! "$",0!0,%2&
16.2 De.osits inclde de.osits (rom related .arties amontin' to Rs4 1!,"$%4""& million 82012= Rs4 30,&114"%
million94
17. DEFERRED TA LIABILIT. (ASSET$ - NET
he details o( the ta/ e((ect o( ta/able and dedctible tem.orary di((erences are as (ollows=
6ote 2013 2012
Restated
T")"&4e te/po%"%' #ie%e*es o
(Rupees i t!ous"#$
Sr.ls on re*alation o( o.eratin' (i/ed assets 2141 #"%,$#3 %!3,%0!ccelerated ta/ de.reciation 1,23!,31! 1,10#,2%0
Recei*able (rom .ension (nd 2,0$&,#%$ !,$$#,#!#Sr.ls 5 de(icit on re*alation o( secrities 2142 311,1"3 1,"01,0$2
$,""3,#3! #,&23,#&%
De#u*ti&4e te/po%"%' #ie%e*es o
7ro*ision (or bad debts 81#,%!!9 812,!329
7ro*ision (or .ost retirement bene(its 8332,%#%9 82&1,!2&9
83"2,"!39 82#$,2!09
$,201,3%3 #,"2#,%2%
Note 2013 2012
Restated
(Rupees i t!ous"#$
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1; OTER LIABILITIES
Mark+. 5 retrn 5 interest .ayable in local crrency 1,#&2,$$1 %,!##,$3$
Mark+. 5 retrn 5 interest .ayable in (orei'n crrencies #&,"!2 !",112
ccred e/.enses %,1"1,%3& ",%!","&0
nclaimed di*idend 1,231,21! "20,"!%
Sta(( wel(are (nd 1&,&$! 2%,#$2
nrealised loss on deri*ati*e (inancial instrments 1&41 1,00",30" 10%,1#$
7ro*ision (or em.loyees? com.ensated absences 3!43 #3$,00# "#$,100
7ro*ision (or .ost retirement medical bene(its 3!43 1,3$0,$%! 1,"!",!3$
7ro*ision (or em.loyees? contribtory bene*olent scheme 3!43 213,$3& 2"%,0
Secrity de.osits 313,323 2%#,&32
Branch adstment accont 1#3,"#% 1#,023
Retention money 2",00$ 31,!3$
)nsrance .ayable a'ainst consmer assets 21!,#"# 1!#,"1%
nclaimed balances ##3,2!$ #01,"%&
Dties and ta/es .ayable &3#,&20 30",%3&
-thers 3,"0!,3$% 2,&"!,1#2
20,0!$,3$" 21,1!!,1!!
1;
1 %e"4ise# 4oss o #e%i+"ti+e i"*i"4 ist%u/etsCot%"*t Notio"4"/out %e"4ise# 4oss
2013 2012 2013 2012
---------------------------(Rupees i t!ous"#$---------------------------
nrealised loss on=
F -.tions 21!,3$$ + 1,0!2 +
Forward e/chan'e contracts !1,$0!,&!" 2",0%$,1&3 1,00$,2$3 10%,1#$
!1,!23,20# 2",0%$,1&3 1,00",30" 10%,1#$
19.SARE CAPITAL
1>1 Aut!o%ise# C"pit"4
2013 2012 2013 2012
(Nu/&e% o s!"%es$ (Rupees i t!ous"#$
1,"00,000,000 1,000,000,000 -rdinary shares o( Rs 10 each1",000,000 10,000,000
19.2 Issue#, su&s*%i&e# "# p"i#-up *"pit"4
2013 2012 2013 2012
Issue# o% Issue# "s Tot"4 Issue# o% Issue# "s Tot"4 (Rupees i t!ous"#$
*"s!&ouss!"%es *"s! &ous
----------------------------------------
(Nu/&e% os!"%es$----------------------------------------
1#%,2"3,%#" %22,!0!,32& #1#,&!0,123 1#%,2"3,%#" !3&,#&2,!&1 &3!,23!,$%!-.enin'balance #,1#&,!01 &,3!2,3!"Sharesissed
+ #1,#&!,012 #1,#&!,012 + &3,!23,!$% &3,!23,!$%drin' theyear #1#,&!0 &3!,23!
1#%,2"3,%#" &1$,"#2,3$01,011,&$!,13
"1#%,2"3,%#
"%22,!0!,32
#,&!0,12
3Closin'balance 10,11&,$!1 #,1#&,!01
2013 2012
(Nu/&e% o s!"%es$
19.3 6mber o( shares held by the associated ndertakin's as at December 31, are as (ollows=
damee )nsrance Com.any Limited 2#,#1$,03$ 2&,!$1,$&!
6ishat Mills Limited %3,2%2,!2# !!,!11,$&1D4:4 han Cement Com.any Limited #2,#%#,303 &$,"2!,!$0
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Din Leather 87ri*ate9 Limited !,30",%"& ",%32,"0&
Siddi@sons Limited 12,#%&,!03 11,%#&,%31
Mayban )nternational rst 8Laban9 Berhad 202,3!#,22" 1&3,#%2,#23
$1%,&1#,""2 3&1,2&3,%!#
2013 2012
20 RESERES
Note (Rupees i t!ous"#$
Share .remim #,%02,"2& #,%02,"2&
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Note 2013 2012(Rupees i t!ous"#$
21. SRPLS ON REALATION OF ASSETS
1- NET OF TA
Sr.ls 5 8de(icit9 arisin' on re*alation 8net o( ta/9 o(=
+ (i/ed assets 2141 11,2&%,#&% #,$1",3$!
+ a*ailable+(or+sale secrities 2142 1,!%1,2%! $,1%&,""112,#"#,2!
3 13,"#3,%
211 Su%p4us o %e+"4u"tio o i)e# "ssets-et o t")
Sr.ls on re*alation o( (i/ed assets as at Aanary 0110,1%#,0"
2 10,23$,112
Sr.ls drin' the year 2,121,$&% +
rans(erred to na..ro.riated .ro(it in res.ect o(
incremental de.reciation char'ed drin' the
year + net o( de(erred ta/ 83",%&&9 83",%
Related de(erred ta/ liability 81#,2%19 81#,2%19
8"",0"#9 8"",0!09Sr.ls on re*alation o( (i/ed assets as at December31
12,2$",$&0 10,1%#,0"2
Less= Related de(erred ta/ liability on=
Re*alation as at Aanary 01 %!3,%0! %&2,#%%
Sr.ls drin' the year 213,0"& +
)ncremental de.reciation char'ed drin' the yeartrans(erred to .ro(it and loss accont 81#,2%19 81#,2%19
#"%,$#3 %!3,%0!
11,2&%,#&% #,$1",3$!
212 Su%p4us (#ei*it$ o %e+"4u"tio o "+"i4"&4e-
o%-s"4e se*u%ities - et o t")
Federal :o*ernment Secrities
+ Market reasry Bills 82&!,3$"9 "10,%3#
+ 7akistan )n*estment Bonds 10",$1& 2,%3&,&"$Listed Secrities
+ Shares 5 Certi(icates 5 nits 2,11!,$20 2,0%1,1#&
+ -.en
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22 CONTIN9ENCIES AND COMMITMENTS
2013 2012
(Rupees i t!ous"#$
221 Di%e*t *%e#it su&stitutes
Contin'ent liabilities in res.ect o( 'arantees 'i*en (a*orin'
:o*ernment !,$&&,0$1 ",12#,$32
Banks and (inancial instittions 2,3$%,"&" 3,"&","01
-thers 1!,0"$,&"1 13,#"!,#22
222 T%"s"*tio-%e4"te# *oti7et 4i"&i4ities
2$,,$%% 22,!%1,&""
:arantees in (a*or o(
Banks and (inancial instittions 20,#33 +
-thers 1,"00,01# !&!,!1"
S..liers? credit 5 .ayee 'arantee 2,$,$32 2,!00,&33
$,010,3&$ 3,2&%,$$&
223 T%"#e-%e4"te# *oti7et 4i"&i4ities &0,!3&,!#0 !#,$23,%$1
22< Ot!e% *oti7e*ies
Claims a'ainst the Bank not acknowled'ed as debts 3,03",&!3 !20,$1!
hese re.resent certain claims by third .arties a'ainst the Bank, which are bein' contested in the Corts o( law4 he
mana'ement is o( the *iew that these relate to the normal corse o( bsiness and the .ossibility o( an ot(low o(
economic resorces is remote4
22.5Co//it/ets to e)te# *%e#it
he Bank makes commitments to e/tend credit in the normal corse o( its bsiness bt these bein' re*ocable
commitments do not attract any si'ni(icant .enalty or e/.ense i( the (acility is nilaterally withdrawn4
Note 2013 2012
(Rupees i t!ous"#$
22=Co//it/ets i %espe*t o o%"%# o%ei7 e)*!"7e*ot%"*ts
7rchase %2,21!,%"1 2","$!,03"
Sale %#,#"#,"!3 21,!#%,!3$
22? Co//it/ets o% t!e "*5uisitio o i)e# "ssets 2$3,!1$ """,3#&
22; Ot!e% *o//it/ets
F o.tions 8notional amont92341 H
2342
7rchase 21!,3$$ +
Sale 21!,3$$ +
22.8T")"tio
For assessment year 1#&&+ thro'h ta/ year 2012, the ta/ de.artment dis.ted Bank?s treatment on certain isses,
where the Bank?s a..eals are .endin' at *arios a..ellate (orms, entailin' an additional ta/ liability o( Rs4$,1
million 82012= Rs4#,!3# million9 which has been .aid4 Sch isses inter alia .rinci.ally inclde disallowance o(
e/.enses (or non dedction o( withholdin' ta/ and non a*ailability o( nderlyin' records, .ro*ision (or non .er(ormin'
loans, attribtion o( e/.enses to heads o( income other than income (rom bsiness and disallowance o( credit (or
ta/es .aid in ad*ance 5 dedcted at sorce4
he Bank has (iled a..eals which are .endin' at *arios a..ellate (orms4 )n addition, certain decisions made in
(a*or o( the Bank are bein' contested by the de.artment at hi'her (orms4 6o .ro*ision has been made in the
(inancial statements re'ardin' the a(oresaid additional ta/ demand and already issed (a*orable decisions where the
de.artment is in a..eal, as the mana'ement is o( the *iew that the isses will be decided in the Bank?s (a*or as and
when these are taken . by the ..ellate thorities4
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For ta/ years 2003 thro'h 200! and ta/ year 2011, a''re'ate liability o( Rs "&$ million has been add'ed nder
section 1!1 o( the )ncome a/ -rdinance, 2001 on the 'ronds that Bank (ailed to dedct a..licable withholdin' ta/
while makin' .ayments on certain acconts4 Sch liability has not been .ro*ided (or in these (inancial statements as
Bank?s mana'ement is o( the *iew that while de.artmental action (or ta/ years 2003 thro'h 200! is barred by
a..licable limitation o( time while the liability (or ta/ year 2011 has been add'ed on an arbitrary basis4
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DERIATIE INSTRMENTS
Most cor.orate 8conter .arties9 ha*e either interest rate e/.osres arisin' (rom debt (inancin' o
e/cess li@idity or crrency e/.osres arisin' ot o( commercial and bsiness transactions4 )n the
e*ent o( a shi(t in interest or (orei'n e/chan'e 8F9 rates, these cor.orate may incr hi'he
borrowin' costs or hi'her cash ot(lows that will ad*ersely a((ect .ro(itability4
he Bank .ro*ides soltions to this conndrm thro'h deri*ati*es4 hro'h this, conter.arties wbe hed'in' e/.osre to ad*erse .rice mo*ements in a secrity, ty.ically when the conter.arty ha
a concentrated .osition in the secrity and is actely e/.osed to mo*ements in the nderlyin' ris
(actors4 he Bank is in a better .osition to hed'e that risk, and is ths able to .ro*ide cost e((icien
hed'in' soltions to the conter.arties enablin' them to concentrate on their bsiness risk4
-ther -becti*es inclde=
1- contribtion to the de*elo.ment o( 7akistani (inancial markets4
2- .ro*ision o( (inancial soltions to the conter.arties4
Risk mana'ement is .er(ormed at=
1) Strate'ic le*el= By senior mana'ement ssets and Liabilities Mana'ement Committee 8LC-9
Risk Mana'ement Committee 8RMC9 and the Board o( Directors to institte a risk mana'emen
(ramework and to ensre .ro*ision o( all resorces and s..ort re@ired (or e((ecti*e ris
mana'ement on Bank+wide basis4
2) Macro Le*el= By Financial )nstittion 7blic Sector 8F)7S9 H Market Risk Mana'ement 8MRM
Di*ision, res.onsible (or .olicy (ormlation, .rocedre de*elo.ment H im.lementationmonitorin' and re.ortin'4
3) Micro Le*el= reasry Deri*ati*es H Strctred 7rodct Desk and reasry -.erations, wher
risks are actally created4
F)7S H MRM Di*ision is res.onsible (or coordinatin' (or risk mana'ement o( deri*ati*es4
he risk mana'ement system 'enerates marked to market risk nmbers 8i4e4 aR, 7B7, dration
etc49 o( )nterest rate deri*ati*e .ort(olio4 hese nmbers are re.orted to senior mana'ement on
daily basis4
s .er the State Bank o( 7akistan?s 8SB79 re'lations, crrency o.tions are hed'ed back to bac
and ths the risk associated with sch transactions are minimal4
Ris Li/its
Be(ore initiatin' any new deri*ati*e transaction, reasry Di*ision re@ests the F)7S H MRM
Di*ision (or risk limits4 Limit re@ests are a..ro*ed by the a..ro.riate le*el o( athority4 7resentl
the Bank has de(ined notional limits both (or the .ort(olio and the conter.arty4
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231 P%o#u*t ""4'sis 2013
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Coute% p"%ties C%oss Cu%%e*' S"ps Ite%est R"te S"ps F Optios
No o Notio"4 No o Notio"4 No o Notio"Cot%"*ts P%i*ip"4
Cot%"*ts P%i*ip"4
Cot%"*ts P%i*ip
(Rupees (Rupees (Rupeei
t!ous"#$ i t!ous"#$i
t!ous"
6it! B"s o%
Eed'in' - - - 2 21=,3
Market Makin' - - - - -
6it! ot!e% etities o%
Eed'in' - - - - -
Market Makin' - - - 2 21=,3
Tot"4
Eed'in' - - - 2 21=,3
Market Makin' - - - 2 21=,3
Coute% p"%ties
2012
C%oss Cu%%e*' S"ps Ite%est R"te S"ps F Optios
No o Notio"4 No o Notio"4 No o Notio"Cot%"*ts P%i*ip"4
Cot%"*ts P%i*ip"4
Cot%"*ts P%i*ip
(Rupees (Rupees (Rupee
>ith Banks (or
it!ous"#$ i t!ous"#$
it!ous"
Eed'in' + + + + + +
Market Makin' + + + + + +
>ith other entities (or
Eed'in' + + + + + +
Market Makin' + + + + + +
otal
Eed'in' + + + + + +
Market Makin' + + + + + +
232 M"tu%it' ""4'sis
Re/"ii7 /"tu%it'
2013
No o Notio"4M"% toM"%et
Cot%"*ts P%i*ip"4 Ne7"ti+e Positi+e Net
F Optios
---------------------(Rupeest!ous"#$------------------
<
8/12/2019 Annual Accounts 2013
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-*er 1 to 3 monhs + + ++
+ +
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60/294
2013 2012
2
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7ostal, S>)F and other char'es reco*ered 1&0,3$0 13#,!2%$$#,!0$ 3%3,&$#
Note 2013 2012
2; ADMINISTRATIE EPENSES
(Rupees i t!ous"#$
Salaries and allowances &,!$0,$10 &,$3$,2$2
Char'e 5 8re*ersal9 (or de(ined bene(it .lans and other bene(its=
+ ..ro*ed .ension (nd 3!4% 81,%01,$"1981,#33,02%
9
+ 7ost retirement medical bene(its 3!4% 1&%,%#2 1&%,13!
+ - + %,#01
Eyderabad Relie( H Rehabilitation rst + 3,&32
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l+Shi(a rst, Fi'htin' 'ainst Blindness + 1,000
Sindh )nstitte o( rolo'y H rans.lantation 8S)9 + ",000
Shokat hanm Memorial rst + 100Cost o( establishin' o( centre o( learnin' in collaboration with C)SC-
+ 1,2$1system and CR< (ondation
7rime MinisterNs
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a/ rate 3"G 3"G
a/ on income 11,300,&%2 11,0%$,!!%
a/ e((ect on se.arate block o( income 8ta/able at redced rate9 8$"!,$3#9 822!,1&&9a/ e((ect o( .ermanent di((erences + &%,#0%
a/ e((ect o( .rior years .ro*isions + 11!,%2"
-thers 8"1,"!!9 8&$,20!9
a/ char'e (or the year 10,%#2,&!% 10,#!&,#0"
31. CREDIT RATIN9
7CR thro'h its noti(ication dated Febrary 0$, 2013, has .'raded bank?s lon' term credit ratin' (rom
Odoble .lsP to Ori.le P and maintained short+term credit ratin' o( 1I O one .lsP4
Note 2013 2012
(Rupees i t!ous"#$
3
2 BASIC AND DILTED EARNIN9S PER SARE - PRE TA
7ro(it be(ore ta/ation 32,2&&,20" 32,0"3,%$$
Nu/&e% o s!"%es
>ei'hted a*era'e nmber o( shares otstandin' drin' the year 1,011,&$!,13" 1,011,&$!,13"
Rupees
Basic and dilted earnin's .er share + .re ta/ 314#1 314!&
Rupees i t!ous"#
3
3 BASIC AND DILTED EARNIN9S PER SARE - AFTER TA
7ro(it a(ter ta/ation 21,$#",33& 20,!%3,002
Nu/&e% o s!"%es
>ei'hted a*era'e nmber o( shares otstandin' drin' the year 1,011,&$!,13" 1,011,&$!,13"
Rupees
Basic and dilted earnin's .er share + a(ter ta/ 2142$ 204$3
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1* >ei'hted a*era'e nmber o( shares otstandin' (or 2012 ha*e been restated to 'i*e e((ect o( bons shares isse
drin' the year4
(Rupees i t!ous"#$
3
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10,3%2 10,!12
&1 %1
10,$"3 10,!&33"4
1 1,$%% 1,#2&
11,#30 12,!11
35.1 his e/cldes otsorced secrity
'ards
andtea
ser*ices sta((4
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DEFINED BENEFIT PLANS AND OTER BENEFITS
36.1 9ee%"4 #es*%iptio
he Bank o.erates the (ollowin' retirement bene(its (or its em.loyees=
1- 7ension (nd 8(inal salary .lan9 + ( nded
2- Bene*olent scheme + n(nded
3- 7ost retirement medical bene(its + n(nded
4-
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Bene(its .aid + + 8101,"109 8$&,#"39 823$,011981$0,$2
29 83%0,&$0981&1,3&
19
-ther Com.rehensi*e income 8$"!,1%1981,21$,$&
#9 8$,#%$9 82!,33"9 81%&,#3#9 12#,#"0 "!$,12!1$1,#2
0
Re(nd 5 withdrawn (rom (nd1$,%31,
& + + + + + + +
Closin' balance o( 8recei*able9 5 .ayable8",&"$,20%
981&,$2&,$
&39213,$3
& 2"%,0,3$0,$%
!1,"!",!
3$ #3$,00#"#$,10
0
36.5 Re*o*i4i"tio o t!e p%eset +"4ue o t!e #eie# &eeit o&4i7"tios
App%o+e# pesiou#
E/p4o'ees*ot%i&uto%'
Post %eti%e/et/e#i*"4
E/p4o'ees*o/pes"te#
N
ote
&ee+o4ets*!e/e &eeits "&se*es
2013 2012201
3 2012 2013 2012 2013 2012Restate
dRestate
dRestat
edRestat
ed
---------------------------------------------------------
(Rupees it!ous"#$---------------------------------------------------------
7resent *ale o( obli'ation as at Aanary 01, $,2"#,!%1 $,2!2,$21 2"%,0 2&3,$%%1,"!",!3
$1,3&&,#%
0 "#$,100 "3",&%0
Crrent ser*ice cost "3,%3# "3,$## 13,&2! 1",230 13,%%3 1",!#% 3!,$$% !2,&!0
)nterest cost $"1,%2% "1&,0#1 2$,%!0 33,!%0 1%3,&3" 1%1,$3# $#,0$2 3$,&31
Bene(its .aid 8##0,""$9 8""$,21098101,"1
09 8$&,#"39 823$,0119 81$0,$229 83%0,&$09 81&1,3&19
Loss 5 8'ain9 on settlement 823,2"19 + 2$,2$% + 1&$ + !1,13$ +
+8:ain9 5 loss (rom chan'e in demo'ra.hic assm.tions 22,!%0 + ",&2$ + 3#,#!" + 8!,!&%9 +
+8:ain9 5 loss (rom chan'e in (inancial assm.tions 3$,000 81$3,1!39 12,1$1 81$,$009 30,23& 8$%,1!29 8!2,%"$9 1,"##
+
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C!"7es i "i% +"4ues o p4" "ssets
App%o+e# pesiou#
E/p4o'ees*ot%i&uto%'
Post %eti%e/et/e#i*"4
E/p4o'ees*o/pes"te#
Note &ee+o4et s*!e/e &eeits "&se*es
2013 2012 2013 2012
2013 2012 2013 2012
Restated
Restated Restated Restated
---------------------------------------------------------
(R
upeesit!ous"#$
------ --------- --------- --------- --------- ---------------
6etassets asatAanary
01,
22,!&
&,1"$
1#,"$3,3&
& + + + + + +
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7resent *ale o( de(ined bene(it obli'ation 213,$3& 2"%,0 2&3,$%% 31$,$1$ 2##,3&&
Fair *ale o( .lan assets + + + + +
213,$3& 2"%,0 2&3,$%% 31$,$1$ 2##,3&&
A*tu"%i"4 7"i (4oss$ o o&4i7"tio
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Se'ment s.eci(ic .ro*ision re@ired + + 11,2!$,#"& 11,11",12# + 22,3&0,0&%
Se'ment liabilities 1#,$01 $1%,!%1,%3$""%,#%2,0&
01%!,0#",&&
# 8$#!,!&$,&239 !"",0%$,2&1
De(erred ta/ liability + + + + + #,"2#,%2%
otal liabilities + net 1#,$01$1%,!%1,%3
$""%,#%2,0&
01%!,0#",&&
#8$#!,!&$,&2
39!!$,!0$,00
&
Se'ment retrn on assets 8R-9 8G9 $24"3G 04&!G
Se'ment cost o( (nd 8G9 + 1143!G
otal income Q 6et
mark. income I
non+mark. income
otal e/.enses Q
6on Mark .
e/.enses I
7ro*isions Se'ment
assets and liabilities
inclde inter
se'ment balances4
ransactions between re.ortable se'ments are based on
an a..ro.riate trans(er .ricin' mechanism sin' a'reed
rates4 Se'ment cost o( (nds ha*e been com.ted basedon the a*era'e balances4
+
+
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RELATED PART. TRANSACTIONS AND B ALANCES
he Bank has related .arty relationshi. with its associates, sbsidiaries, em.loyee bene(it .lans and its key mana'ement .ersonnel 8incldin' their associates9 and com.anies with common directors4 he detail o( in*estme
sbsidiary com.anies and associates are stated in nne/re ) 8note " H !9 t o these (inancial statements4
he Bank enters into transactions with related .arties in the normal corse o( bsiness4 Contribtions to and accrals in res.ect o( sta(( retirement bene(its and other bene(it .lans are made in accordance with the actarial *alatio
terms o( the contribtion .lan4 Remneration to the e/ecti*es 5 o((icers is determined in accordance with the terms o( their a..ointment4 Remneration to Chie( ithdrawn drin' the year8!,20",#1
"9 8!,$23,3&%9 81&,&"%,&3"9 810,#11,!&39 821%,2"0981,"00,&1%
9 8%3,#03,3!!9 83!,&10,&2!981,0#%,&01
981,1%2,1
Closin' balance #31,!!" 2,&!3,&%$ #%&,$0& #%!,!$2 2$,%%1 %$,$!1 1$,$&%,"1% 2!,&"0,""# 12",1#% $!,03
A#+"*es (se*u%e# $
-.enin' balance 2,%#" + + + $&",%$# $$#,%2# #&,0"! &1,302 "3,&!" $#,%$
dditions 5 adstments drin' the year + 3,3!% + + $0,&%$ 3!,020 $0!,3"$ $1",& 2%,"!# 12,$3
Re.aid drin' the year 8!109 8"%29 + + + 83&%,&2!9 83##,13"9 813,!!#98&,3
$9
Closin' balance 2,1&" 2,%#" + + "2!,!23 $&",%$# 11!,"&$ #&,0"! !%,%!" "3,&!
Outst"#i7 B"4"*e o *%e#it *"%# "$" &"2 + + + + 2 +2,!3
" #"
Re*ei+"&4e %o/ Pesio u# - + + + + + ",&"$,20% 1&,$2&, $&3 + +
B Ot!e% t%"s"*tios (i*4u#i7 p%oit "# 4oss %e4"te# t%"s"*tios$
Di%e*to%s Asso*i"tes Su&si#i"%ies Ot!e% %e4"te# p"%ties Ke' /""7e/et
2013 2012 2013 2012 2013 2012 2013 2012 2013 2012
-----------------------------------------------------------------
(Rupees it!ous"#$-----------------------------------------------------------------
-tstandin' commitments and contin'ent liabilities + + 10,&0" &,3!" + + #0,1%1 &1#,&%3 + +
Forward (orei'n e/chan'e contracts 86otional9 + otstandin' + + + + + + ",!23,3"1 + + +
nreali;ed 'ain on (orward (orei'n e/chan'e contracts + otstandin' + + + + + + 1#,$2$ + + +
Forward contracts drin' the year + + + + + + 3$,!!",$22 + + +
Re.o deals drin' the year + + 3#,%$2,10% + + + + + + +
Borrowin's + + + + + + 3,1"#,%3& + + +
rade .ayable + + %,"#$ 1$,321 3,#1& 12,1%% 2%,$33 %,01# + +
Retention money + + + + + + 3,!12 + + +
Mark. .ayable + "0$ $0" 12,!$" 1"! 1"! 1,0%1,2&% 1,0$",!22 &0 "$
d*ance recei*able + + + + + + "&,0&" 20,000 + +
Mark. Recei*able + + + + $,!30$,$$
& ",121 2,23% + +
Recei*able (or other e/.enses + + + + %,3&12,1$
" + + + +
Commission Recei*able + + + + 2",1&1#,&2
! + + + +
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-tstandin' )n*estments in mtal (nds + + + + + + + $,0"0,000 + +
Di*estment in hshali Bank Limited + + + + + + + 300,000 + +
)nsrance .remim .aid+net o( re(nd + + 2$%,&03 30#,$%2 + + + + + +
)nsrance claim settled + + #",!$" 3#,1#3 + + + + + +
Mark. income on ad*ances + + + + 23,!!" 2",1&0 %,#&3 %,!$0!,2!
# 2,&$
Rent )ncome Recei*ed + + 2,02" 2,$30 + + + + + +
Di*idend )ncome + + 12!,11& "$,0"1 #2,3#2 &3,1"3 1"#,"%0 $0&,!3# + +
Ca.ital 'ain 5 8loss9 + + + + + + 303,21" 833,#1!9 + +
Commission income + + %"1,0!# "0#,!#& 3&,&03 3!,0%$ %,20# &,$$# + +B Ot!e%t%"s"*tios(i*4u#i7p%oit "#4oss%e4"te#
t%"s"*tios$
Di%e*t
o%s
Asso*i"tes
Su&
si#i"%ies
Ot!e%%e4"te
#
p"%ties
Ke'
/""7e/et
2013 2012
2013 2012 2013 2012
2013 2012 2013
-----------------------------------------------------------------
(Rupeesit!ous"#$----------------------------------------------------------------
-
Reimbrsemento(e/.enses + + + + 12,0&1 13,1## + + + +Brokera'ee/.ense + + + + + + + 3"$ + +7roceeds (romsale o((i/edassets + + + + + + + 2,! "!2:ain 58loss9on saleo( (i/ed
assets + + + + + + + + 82,30%9 +M-tsorcin'
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'arde/.ensesRemnerationandnon+e/ecti*edirectors (ee
&",#%% 11!," + + + + + +
311,!0" 32$,2!!
Mark+.e/.ense
103,3#$ 321,%
%1,2%" "",!"% 1,$&3 2,0#!
2,0&0,%!0 2,#&3, 2,31% 3,333
Clearin'
e/.enses .aid to6)F + + + + + + 12$,31" 11",#"& + +Contribtion to.ro*ident (nd + + + + + + 1#%,%21 1&&,$1% + +:asChar'es + + + + + + 10,#3# 12,%%0 + +Miscellaneose/.enses and.ayments + +
1%%,0 11#,$32 + + 11%,%3& $2,!2& + +
he details o( director?s com.ensations are 'i*en in note 3& to these (inancial statements4
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! p4us CCB1000
H1000
H102@
H112@
H11;;
H12@0
H 12@0H
1- K8Consistin' o(C
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BankNs re'latory ca.ital is analysed into three tiers4
1- Common
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C"pit"4 St%u*tu%e
Co//o E5uit' Tie% 1 *"pit"4 (CET1$ Ist%u/ets "# %ese%+es
1 Flly 7aid+. Ca.ital
2 Balance in Share 7remim ccont
3 Reser*e (or isse o( Bons Shares
4 :eneral5 Stattory Reser*es
5 :ain58Losses9 on deri*ati*es held as Cash Flow Eed'e
6 na..ro.riated .ro(its
8 CET 1 &eo%e Re7u4"to%' A#8ust/ets
Co//o E5uit' Tie% 1 *"pit"4 Re7u4"to%' "#8ust/ets
9 :oodwill 8net o( related de(erred ta/ liability9
10 ll other intan'ibles 8net o( any associated de(erred ta/ liability9
11 Short(all o( .ro*isions a'ainst classi(ied assets12 De(erred ta/ assets that rely on (tre .ro(itability e/cldin' those arisin' (rom
tem.orary di((erences 8net o( related ta/ liability9
13 De(ined+bene(it .ension (nd net assets
14 Reci.rocal cross holdin's in C
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31-12-201331-12-
2012
A/out A/outssu&8e*t to
P%e -
B"se4 III
t%e"t/et
(----------Rupees i t!ous"#---------$
10,11&,$!1 #,1#&,!01#,%02,"2& #,%02,"2&
+ +
3!,300,$#$3$,1"0,#!
0+ +
$0,""2,0$33$,%0",03
&
>=,=?3,@2=;?,?@?,12
?
+ +&3!,&13 !2!,!21
+ +
+ ++ 3,&0",233 +
+ 10,%%%+ ++ ++ ++ +
+ +
+ +
+ +
+ +++ ++ ++++
%3",0!! %%#,211
1,@?1,;?> 1,
>@,101,=
8/12/2019 Annual Accounts 2013
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ca.ital o( the entity %1 o( which= de(erred ta/ assets%2 o( which= De(ined+bene(it .ension (nd net assets%3 o( which= -thers%$ otal Market Risk >ei'hted ssets%" otal -.erational Risk >ei'hted ssets
C"pit"4 R"tios "# &ue%s (i pe%*et"7e o %is ei7!te# "ssets$
%! C%% ier+1 ca.ital to total R>%& otal ca.ital to R>%#
Bank s.eci(ic b((er re@irement 8minimm C
8/12/2019 Annual Accounts 2013
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dedction was made (rom C
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Step 1
pu&4is!e#
i"*i"4
st"te/ets
31-12- 2013
(Rupees i t!ous"#$
Assets
Cash and balances with treasry banks "#,#$!,1"0
Balanced with other banks 1,"3!,#$!
Lendin' to (inancial instittions 1,22$,!3&
)n*estments $$#,00!,01#
d*ances 2$&,2$2,#!"
-.eratin' (i/ed assets 2&,"#",33&
De(erred ta/ assets
-ther assets 2!,#"!,31"
Tot"4 "ssets ;1@,@0;,3?1
Li"&i4ities E5uit'
Bills .ayable 10,13&,%2!
Borrowin's 3&,"$2,!!0
De.osits and other acconts !32,330,2&!
Sb+ordinated loans
Liabilities a'ainst assets sbect to (inance lease
De(erred ta/ liabilities $,201,3%3
-ther liabilities 20,0!$,3$"
Tot"4 4i"&i4ities ?0@,2??,3>0
Share ca.ital 10,11&,$!1
Reser*es $!,!01,21$
na..ro.riated .ro(it $0,""2,0$3
Minority )nterest
Sr.ls on re*alation o( assets 12,#"#,2!3
Tot"4 E5uit' 110,230,>;1
Tot"4 4i"&i4ities e5uit' ;1@,@0;,3?1
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As pe% #e%
Re
Step 2
pu&4is!e# %e7u4"to%'
i"*i"4 s*ope o
st"te/ets*oso4i#"tio
Assets
31-12- 2013 31-12- 2013
Cash and balances with treasry banks "#,#$!,1"0 "#,#$!,1"0
Balanced with other banks 1,"3!,#$! 1,"3!,#$!
Lendin' to (inancial instittions 1,22$,!3& 1,22$,!3&
)n*estments $$#,00!,01# $$#,00!,01#
of which: Non-significant capital investments in capital of other financial
+ + ainstitutions exceeding 10% threshold
of which: significant capital investments in financial sector entities exceeding
+ 102,"!! bregulatory threshold
of which: Mutual Funds exceeding regulatory threshold + c
of which: reciprocal crossholding of capital instrument + d
of which: others e
d*ances 2$&,2$2,#!" 2$&,2$2,#!"
shortfall in provisions/ excess of total ! amount over eligi"le provisions
+ + (under #$
general provisions reflected in &ier ' capital $##,1$" $##,1$" '
Fi/ed ssets 2&,"#",33& 2&,"#",33&
of which: #ntangi"les &3!,&13 &3!,&13 k
De(erred a/ ssets + +
of which: (&)s excluding those arising from temporary differences
of which: (&)s arising from temporary differences exceeding regulatory
+ + h
+ + ithreshold-ther assets 2!,#"!,31" 2!,#"!,31"
of which: *oodwill + +
of which: (efined-"enefit pension fund net assets ",&"$,20% ",&"$,20% l
Tot"4 "ssets ;1@,@0;,3?1 ;1@,@0;,3?1
Li"&i4ities E5uit'
Bills .ayable 10,13&,%2! 10,13&,%2!
Borrowin's 3&,"$2,!!0 3&,"$2,!!0
De.osits and other acconts !32,330,2&! !32,330,2&!
Sb+ordinated loans + +
of which: eligi"le for inclusion in )&1 + + mof which: eligi"le for inclusion in &ier ' + + n
Liabilities a'ainst assets sbect to (inance lease + +
De(erred ta/ liabilities $,201,3%3 $,201,3%3
of which: (&!s related to goodwill + + o
of which: (&!s related to intangi"le assets + + .
of which: (&!s related to defined pension fund net assets 2,0$&,#%$ 2,0$&,#%$ @
of which: other deferred tax lia"ilities 2,1"2,3## 2,1"2,3## r
-ther liabilities 20,0!$,3$" 20,0!$,3$"
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Tot"4 4i"&i4ities ?0@,2??,3>0 ?0@,2??,3>0
Share ca.ital 1#,&20,# 1#,&20,#
of which: amount eligi"le for +&1 1#,&20,# 1#,&20,# s
of which: amount eligi"le for )&1 + + t
Reser*es 3!,&,!&! 3!,&,!&!
of which: portion eligi"le for inclusion in +&1 ,general reserve statutory
3!,300,$#$ 3!,300,$#$ reserve.
of which: portion eligi"le for inclusion in &ier ' "#&,1#2 "#&,1#2 *
na..ro.riated .ro(it $0,""2,0$3 $0,""2,0$3 w
Minority )nterest + +
of which: portion eligi"le for inclusion in +&1 + + /
of which: portion eligi"le for inclusion in )&1 + + y
of which: portion eligi"le for inclusion in &ier ' + + ;
Sr.ls on re*alation o( assets 12,#"#,2!3 12,#"#,2!3
of which: $evaluation reserves on roperty 11,2&%,#&% 11,2&%,#&% aa
of which: nrealied *ains/!osses on )F2 1,!%1,2%! 1,!%1,2%!
#n case of (eficit on revaluation ,deduction from +&1. + +
a
bTot"4 E5uit' 110,230,>;1 110,230,>;1
Tot"4 4i"&i4ities E5uit' ;1@,@0;,3?1 ;1@,@0;,3?1
Co/poeto
Sou%*e&"se#
%e7u4"to%'o
%ee%e*e
Step 3*"pit"4
%epo%te#u/&e%
%o/
&' &" step 2
Rupees i
t!ous"#
Co//o E5uit' Tie% 1 *"pit"4 (CET1$ Ist%u/ets "# %ese%+es
1 Flly 7aid+. Ca.ital 10,11&,$!1
8s92 Balance in Share 7remim ccont #,%02,"2&3 Reser*e (or isse o( Bons Shares +$ :eneral5 Stattory Reser*es 3!,300,$#$
89" :ain58Losses9 on deri*ati*es held as Cash Flow Eed'e +! na..ro.riated5nremitted .ro(its58losses9 $0,""2,0$3 8w9
& CET 1 &eo%e Re7u4"to%' A#8ust/ets >=,=?3,@2=
Co//o E5uit' Tie% 1 *"pit"4 Re7u4"to%' "#8ust/ets
# :oodwill 8net o( related de(erred ta/ liability9 89 + 8o9+10
ll other intan'ibles 8net o( any associated de(erred ta/ liability9 &3!,&13 8k9 + 8.911
Short(all o( .ro*isions a'ainst classi(ied assets + 8(9
12
De(erred ta/ assets that rely on (tre .ro(itability e/cldin' thosearisin'
8h9 + 8rT K 0G(rom tem.orary di((erences 8net o( related ta/ liability9 +
13
De(ined+bene(it .ension (nd net assets +8l9 + 8@9T K
0G
8/12/2019 Annual Accounts 2013
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1$
Reci.rocal cross holdin's in C
Co//o E5uit' Tie% 1 >@,101,=
8/12/2019 Annual Accounts 2013
88/294
A##itio"4 Tie% 1 (AT 1$ C"pit"4
31
Jali (yin' dditional ier+1 instrments .ls any related share .remim +
32
o( which= Classi(ied as e@ity +
8t9
3
3 o( which= Classi(ied as liabilities +
8m
93$
dditional ier+1 ca.ital instrments issed by consolidated sbsidiaries
and held by third .arties 8amont allowed in 'ro. 19 +
8y9
3"
o( which= instrment issed by sbsidiaries sbect to .hase ot +
3!
AT1 &eo%e %e7u4"to%' "#8ust/ets +
A##itio"4 Tie% 1 C"pit"4 %e7u4"to%' "#8ust/ets
3%
)n*estment in mtal (nds e/ceedin' the .rescribed limit 8SB7 s.eci(ic
adstment9 +3&
)n*estment in own 1 ca.ital instrments +3#
Reci.rocal cross holdin's in dditional ier 1 ca.ital instrments +
40 )n*estments in the ca.ital instrments o( bankin', (inancial andinsrance entities that are otside the sco.e o( re'latory consolidation,
where the bank does not own more than 10G o( the issed share ca.ital8amont
abo*e 10G threshold9 +
8ac9
41 Si'ni(icant in*estments in the ca.ital instrments issed bybankin', (inancial and insrance entities that are otside the sco.e o(
re'latory
consolidation +
8a
d9
42 7ortion o( dedction a..lied "0="0 to core ca.ital ands..lementary ca.ital based on .re+Basel ))) treatment which, drin'
transitional .eriod,
remain sbect to dedction (rom tier+1 ca.ital %3",0!!
$3
Re'latory adstments a..lied to dditional ier 1 de to ins((icientier
2 to co*er dedctions +
$$
otal o( Re'latory dstment a..lied to 1 ca.ital %3",0!!$"
dditional ier 1 ca.ital +$!
A##itio"4 Tie% 1 *"pit"4 %e*o7ie# o% *"pit"4 "#e5u"*' +
Tie% 1 C"pit"4 (CET1 "#/issi&4e AT1$ >@,101,=
8/12/2019 Annual Accounts 2013
89/294
"!
ndisclosed5-ther Reser*es 8i( any9 +
"%
T2 &eo%e %e7u4"to%' "#8ust/ets =,>2>,00@
Tie% 2 C"pit"4 %e7u4"to%' "#8ust/ets
58 7ortion o( dedction a..lied "0="0 to core ca.ital ands..lementary ca.ital based on .re+Basel ))) treatment which, drin'
transitional .eriod,
remain sbect to dedction (rom tier+2 ca.ital %3",0!!
"# Reci.rocal cross holdin's in ier 2 instrments +!0
)n*estment in own ier 2 ca.ital instrment +
61 )n*estments in the ca.ital instrments o( bankin', (inancial andinsrance entities that are otside the sco.e o( re'latory consolidation,
where the bank does not own more than 10G o( the issed share ca.ital
8amont
abo*e 10G threshold9 +
8
a
e9
62 Si'ni(icant in*estments in the ca.ital instrments issed bybankin', (inancial and insrance entities that are otside the sco.e o(
re'latory
consolidation +
8a(
9!3
mont o( Re'latory dstment a..lied to 2 ca.ital ?3@,0==!$
ier 2 ca.ital 829 =,1>3,>3>!"
ier 2 ca.ital reco'ni;ed (or ca.ital ade@acy =,1>3,>3>!!
8/12/2019 Annual Accounts 2013
90/294
M"i Fe"tu%es Te/p4"te o Re7u4"to%' C"pit"4 Ist%u/ets
1 )sser MCB Bank Limited
2 ni@e identi(ier 8e' S< Symbol or Bloomber' identi(ier etc49 MCB