Banking Survey 2013

KPMG Taseer Hadi & Co.Chartered Accountants

Banking Survey 2013 Commercial Banks Operating in Pakistan

Banking Survey 2013This survey has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected commercial banks in Pakistan for the year ended 31 December 2013.

Banking sector in Pakistan has been divided in four categories for the purpose of this survey to facilitate comparison of peer groups.

I. Large Banks: Total assets in excess of Rs. 500 billion.

II. Medium size Banks: Total assets in excess of Rs. 100 billion but less than Rs. 500 billion.

III. Small Banks: Total assets less than Rs. 100 billion.

IV. Islamic Banks: All banks carrying out Islamic banking activities only.

Islamic Banks have been presented as a separate category and included in their respective category of Medium and Small Banks based on total assets threshold.

The information contained in this survey has been obtained from the publishedconsolidated financial statements of the banks, statistical bulletins published by State Bank of Pakistan (SBP) and information published in business magazines and newspapers. Where consolidated financial statements were required and were not available, standalone financial statements have been used.

Reference should be made to the published financial statements of the banks and definitions included in this survey to enhance the understanding of ratios andanalysis of performance of a particular bank.

Comparative figures of 2012 as reported in our Banking Survey 2012 have been updated to correspond with comparative figures reported in 2013 financial statements. The majority of the banks have restated their 2012 financial statements mainly due to application of revised IAS 19 Employee Benefits effective for periods beginning on or after 1 January 2013.

We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. However, we welcome any comments, which would facilitate in improving the contents of this survey. The comments may be sent on [email protected]

Dated 5 May 2014

Karachi

2014 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.


2013 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights

reserved.


Contents

At a Glance ............................................................................................... 1

Summary of Financial Information ............................................................ 7

Profitability .............................................................................................. 13

Spread .................................................................................................... 17

Non-Funded Income ............................................................................... 21

Staff Costs .............................................................................................. 23

Loans and Advances .............................................................................. 27

Liquidity (Average Advances to Average Deposits) ................................ 33

Deposits .................................................................................................. 37

Credit Ratings ......................................................................................... 43

Number of Branches and Legend ........................................................... 45

Definitions ............................................................................................... 47


2014 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member

firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Banking Survey 2013 2

B



At a Glance

Large Banks

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

RankingBy total assets 1 1 2 2 3 3 4 4 5 5 6 6By net assets 2 2 1 1 4 4 3 3 5 6 7 7By profit before tax 1 1 7 4 3 3 2 2 5 5 8 8

Profit before tax 36,133 35,562 7,029 22,184 28,965 28,316 32,932 32,065 14,931 16,112 6,807 6,783 (Rupees in millions)

Net Interest Margin 2.4% 3.3% 2.3% 3.4% 2.7% 3.5% 3.5% 4.5% 2.0% 1.8% 1.6% 2.1%

Return on Average Equity 26.3% 29.4% 4.6% 16.1% 27.2% 29.9% 29.7% 32.3% 25.1% 33.5% 22.0% 24.4%

Return on Average Assets 2.2% 2.6% 0.5% 1.8% 2.8% 3.2% 4.1% 4.5% 2.2% 2.8% 1.2% 1.4%

Operating Cost to Net 66.9% 54.3% 98.4% 81.9% 75.0% 67.3% 52.6% 44.5% 74.3% 84.3% 102.5% 83.6%Income ratio

Net provision/(reversal) 1,400 6,767 19,568 10,710 1,594 4,247 (2,836) 478 580 1,020 1,056 3,537 (Rupees in millions)

Impairment cover 26.8 6.3 1.4 3.1 19.2 7.7 - 68.1 26.7 16.8 7.4 2.9(Times)

Non Performing Advances 9.2% 10.9% 16.3% 12.6% 11.9% 13.6% 8.7% 9.7% 6.8% 7.2% 6.6% 8.9%to gross loans

Total Assets 1,715,271 1,610,474 1,371,718 1,316,349 1,083,633 962,346 821,278 771,458 734,762 634,092 610,614 536,568(Rupees in millions)

Net Assets 142,434 132,730 160,664 144,881 111,273 101,928 115,463 106,475 66,686 52,386 31,902 30,059 (Rupees in millions)

Capital Adequacy Ratio 15.4% 15.3% 16.1% 16.1% 13.3% 14.9% 22.2% 22.2% 18.0% 16.3% 12.1% 12.6%

CASA 73.2% 66.6% 69.1% 70.0% 65.8% 65.7% 88.5% 83.4% 67.7% 68.4% 68.7% 69.1%

EPS 17.2 17.0 2.5 7.3 15.8 15.7 21.6 20.6 14.2 11.4 3.5 3.4

BAFNBPHBL UBL MCB ABL

Medium Banks

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012


Profit before tax 7,553 8,938 16,368 9,322 (8,323) 1,773 2,161 1,835 2,978 1,515 5,647 5,230 (Rupees in millions)


Return on Average Equity 30.4% 40.7% 29.1% 16.8% -43.0% 9.5% 10.0% 9.1% 23.1% 13.2% 31.8% 34.5%

Return on Average Assets 1.7% 2.1% 4.0% 2.4% -2.2% 0.5% 0.6% 0.6% 0.9% 0.5% 1.9% 2.2%


Net provision/(reversal) 480 466 (925) 3,579 11,011 2,693 2,116 1,401 (651) (750) 93 451 (Rupees in millions)

Impairment cover 16.7 20.2 - 3.6 0.2 1.7 2.0 2.3 - - 61.5 12.6(Times)


Total Assets 461,022 453,354 410,260 399,055 395,097 353,182 355,280 313,123 352,674 332,110 329,725 274,437 (Rupees in millions)



CASA 75.1% 70.3% 90.7% 88.0% 72.6% 71.4% 61.9% 56.7% 55.8% 56.0% 65.8% 65.5%

EPS 5.1 5.4 2.7 1.5 (6.2) 1.5 1.8 1.4 2.3 2.8 4.0 3.5

MeezanBAH SCB Askari Faysal BOP

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012


Profit before tax 5,117 5,041 2,112 440 1,530 1,722 (1,386) (2,499) 1,078 1,159 1,669 1,572 (Rupees in millions)


Return on Average Equity 18.2% 19.1% 14.0% 3.1% 11.9% 14.8% -43.6% -57.4% 9.7% 11.7% 13.7% 14.2%

Return on Average Assets 1.7% 1.7% 1.1% 0.5% 0.9% 1.2% -1.1% -2.0% 1.1% 1.7% 1.8% 2.1%


Net provision/(reversal) 2,109 2,694 (629) 117 735 520 (836) 23 264 530 82 178 (Rupees in millions)

Impairment cover 3.4 2.9 - 4.8 3.1 4.3 - - 5.1 3.2 21.3 9.8(Times)


Total Assets 311,396 304,310 178,294 190,855 169,234 158,629 125,500 134,289 114,749 84,019 108,170 82,178 (Rupees in millions)



CASA 56.5% 49.9% 66.4% 67.6% 68.8% 66.5% 67.9% 52.3% 57.9% 55.6% 56.5% 50.6%

EPS 3.4 3.2 0.2 0.02 0.9 1.0 (1.5) (2.5) 0.4 0.7 1.2 1.1

HMB NIB Soneri Summit BOKJS


2 Banking Survey 2013


Small Banks2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

RankingBy total assets 19 18 20 23 21 22 22 24 23 17By net assets 24 28 26 24 25 27 23 22 17 17By profit before tax 30 29 26 30 21 21 23 20 18 17

Profit before tax (1,528) (529) (34) (956) 308 463 212 501 953 1,286 (Rupees in Millions)

Net Interest Margin 2.4% 2.7% 1.6% 1.5% 3.4% 3.0% 2.7% 4.3% 1.3% 1.5%

Return on Average Equity -25.4% -9.6% -0.6% -15.2% 5.2% 8.5% 3.1% 7.6% 8.5% 11.8%

Return on Average Assets -1.7% -0.6% 0.0% -1.3% 0.4% 0.7% 0.3% 0.9% 1.1% 1.8%

Operating Cost to Net 202.8% 214.3% 125.5% 136.2% 100.9% 90.9% 102.4% 100.1% 95.1% 62.7%Income ratio

Net provision/(reversal) 633 (580) 171 802 123 96.07 457 193 17 1.07 (Rupees in millions)

Impairment cover - - 0.8 - 3.5 5.8 1.5 3.6 56.1 1203.6(Times)

Non Performing Advances 16.0% 20.0% 13.2% 19.3% 2.8% 4.3% 7.1% 9.2% 0.2% 0.0%to gross loans

Total Assets 91,800 89,080 87,759 73,867 86,856 74,249 80,257 63,510 75,032 92,291 (Rupees in Millions)

Net Assets 6,675 5,373 5,848 6,019 6,242 5,591 6,962 6,876 11,327 11,088 (Rupees in Millions)

Capital Adequacy Ratio 7.7% 5.7% 12.0% 11.2% 15.4% 15.1% 14.6% 19.1% 24.0% 38.5%

CASA 52.7% 48.7% 49.4% 47.8% 36.7% 50.4% 64.3% 58.7% 64.3% 77.7%

EPS (0.4) (0.1) (0.1) (0.7) 0.4 0.6 0.2 0.5 0.7 0.9

DIB SindhSilk AlBaraka Islami

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012


Profit before tax 260 (180) 2,886 2,403 (1,739) 33 516 (1,041) (1,078) (488)(Rupees in millions)


Return on Average Equity 7.6% -5.9% 32.9% 24.4% -30.8% 0.6% 7.3% -15.1% -14.5% -6.4%

Return on Average Assets 0.6% -1.3% 4.0% 2.6% -3.5% 0.1% 1.0% -2.0% -2.2% -0.9%


Net provision/(reversal) - - (687) 822 821 (174) (25) 378 493 526 (Rupees in millions)

Impairment cover - - - 3.9 - - - - - 0.1(Times)


Total Assets 62,045 22,048 59,886 85,196 53,389 47,185 52,403 47,778 48,023 50,328 (Rupees in millions)

Net Assets 3,695 3,149 8,557 8,992 5,361 5,937 7,223 6,824 7,248 7,644 (Rupees in millions)

Capital Adequacy ratio 21.9% 71.0% 24.1% 20.7% 20.8% 22.6% 31.7% 29.8% 31.8% 27.7%

CASA 24.9% 29.5% 64.8% 74.5% 43.6% 48.9% 65.7% 69.5% 68.0% 61.9%

EPS - - - - (1.5) 0.1 - - - -

CitiBankICBC Burj HSBCBarclays


2013 2012 2013 2012 2013 2012 2013 2012

RankingBy total assets 29 28 30 29 31 30 32 32By net assets 19 20 28 25 32 32 29 29By profit before tax 24 23 20 19 27 24 25 25

Profit before tax 82 164 490 551 (222) 95 21 71 (Rupees in millions)

Net Interest Margin 1.6% 2.6% 4.1% 4.6% 2.2% 2.5% 1.1% 1.1%

Return on Average Equity 0.9% 2.0% 8.7% 9.2% -12.2% 5.2% 0.4% 1.4%

Return on Average Assets 0.2% 0.5% 1.7% 2.2% -1.0% 0.5% 0.2% 0.8%

Operating Cost to Net 112.2% 106.1% 123.7% 106.4% 128.4% 93.2% 284.6% 226.8%Income ratio

Net provision/(reversal) (90) (91) 7 (32) 172 51 - - (Rupees in millions)

Impairment cover - - 67.7 - - 2.9 - -(Times)

Non Performing Advances 11.4% 13.7% 7.7% 8.2% 7.9% 7.1% 0.0% 0.0%to gross loans

Total Assets 40,002 34,854 27,804 28,949 20,761 22,506 9,294 8,272 (Rupees in millions)

Net Assets 10,131 8,516 5,287 5,961 1,635 1,997 4,523 5,064 (Rupees in millions)

Capital Adequacy ratio 42.4% 43.9% 17.7% 21.9% 20.1% 24.7% 128.7% 102.0%

CASA 57.1% 49.0% 61.8% 45.4% 58.2% 58.7% 16.3% 24.0%

EPS 0.1 0.4 - - (1.4) 0.4 - -

Samba DB FWB BOT




Islamic Banks

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012


Profit before tax 5,647 5,230 (34) (956) 308 463 212 501 (1,739) 33 (Rupees in millions)


Return on Average Equity 31.8% 34.5% -0.6% -15.2% 5.2% 8.5% 3.1% 7.6% -30.8% 0.6%

Return on Average Assets 1.9% 2.2% 0.0% -1.3% 0.4% 0.7% 0.3% 0.9% -3.5% 0.1%


Net provision/(reversal) 93 451 171 802 123 96 457 193 821 (174)(Rupees in millions)

Impairment cover 61.5 12.6 0.8 - 3.5 5.8 1.5 3.6 - - (Times)


Total Assets 329,725 274,437 87,759 73,867 86,856 74,249 80,257 63,510 53,389 47,185 (Rupees in millions)

Net Assets 18,913 16,563 5,848 6,019 6,242 5,591 6,962 6,876 5,361 5,937 (Rupees in millions)

Capital Adequacy ratio 12.5% 14.1% 12.0% 11.2% 15.4% 15.1% 14.6% 19.1% 20.8% 22.6%

CASA 65.8% 65.5% 49.4% 47.8% 36.7% 50.4% 64.3% 58.7% 43.6% 48.9%

EPS 4.0 3.5 (0.1) (0.7) 0.4 0.6 0.2 0.5 (1.5) 0.1

Meezan IslamiAlBaraka DIB Burj




Summary of Financial Information

Large Banks

Assets

HBL 192,818 826,062 35,271 563,701 25,706 71,712 1,715,271 NBP 176,619 396,412 51,942 620,217 34,569 91,960 1,371,718 UBL 122,250 458,846 29,858 415,283 28,038 29,357 1,083,633 MCB 61,541 453,808 1,225 248,522 29,006 27,177 821,278 ABL 45,775 363,811 12,461 267,036 22,097 23,582 734,762 BAF 96,385 219,690 2,522 260,780 14,835 16,402 610,614

695,388 2,718,629 133,279 2,375,539 154,251 260,190 6,337,276

Rupees in million

Lendings to financial

institutions

Loans and advances -

net of provisions

Operating fixed assets & intangible

assets

Other assets Total assetsBank Cash & bank Investments

Liabilities and Equity

HBL 19,422 107,864 1,401,230 2,633 41,687 142,434 1,715,271 NBP 13,895 23,014 1,101,845 - 72,300 160,664 1,371,718 UBL 16,601 41,078 889,526 665 24,490 111,273 1,083,633 MCB 10,139 38,660 632,309 - 24,707 115,463 821,278 ABL 4,879 32,952 608,407 4,242 17,596 66,686 734,762 BAF 9,543 23,115 525,526 9,991 10,537 31,902 610,614

74,479 266,683 5,158,843 17,531 191,317 628,422 6,337,276

Total

Rupees in million

Subordinated loans Other liabilities EquityBorrowings DepositsBank Bills payable

Income Statement

HBL 55,016 1,400 19,323 72,939 36,806 36,133 13,106 23,027 (1,080) NBP 39,298 19,568 25,952 45,682 38,653 7,029 1,722 5,307 23,474 UBL 39,509 1,594 20,699 58,614 29,649 28,965 9,234 19,731 1,368 MCB 37,967 (2,836) 12,105 52,908 19,976 32,932 10,982 21,950 (1,446) ABL 21,661 580 9,950 31,031 16,100 14,931 148 14,783 5,313 BAF 16,895 1,056 8,279 24,118 17,311 6,807 2,131 4,676 (132)

210,346 21,362 96,308 285,292 158,495 126,797 37,323 89,474 27,498

Rupees in million

Non-mark-up / Non-interest income

Operating income

Operating expenses

Profit before tax Taxation

Profit after taxBank Spread

Net provisions / (reversals)

Other Comprehensive

Income

Medium Size Banks

Assets

BAH 34,864 239,986 - 167,569 11,816 6,787 461,022SCB 33,940 146,380 22,159 146,239 32,396 29,147 410,260Askari 35,229 165,898 2,503 163,561 8,623 19,282 395,097Faysal 29,434 113,319 300 184,190 10,251 17,785 355,280BOP 28,086 123,974 11,407 157,240 3,515 28,452 352,674Meezan 32,137 151,614 7,443 127,623 5,595 5,313 329,725HMB 24,761 142,327 - 129,834 3,036 11,438 311,396NIB 8,696 60,792 2,128 82,026 6,046 18,606 178,294Soneri 13,630 46,703 2,738 97,179 4,009 4,976 169,234Summit 11,506 39,527 1,555 54,208 6,258 12,446 125,500JS 8,317 43,855 21,586 33,769 3,751 3,471 114,749BOK 7,882 53,363 7,500 35,450 1,604 2,370 108,170

268,482 1,327,738 79,319 1,378,888 96,900 160,073 3,311,401

Total assetsBank Cash & bank Investments

Rupees in million


institutions


net of provisions


assets

Other assets


BAH 6,173 29,480 386,099 6,486 7,203 25,581 461,022SCB 6,540 17,291 296,377 2,500 30,600 56,952 410,260Askari 5,688 24,546 335,173 3,994 6,724 18,972 395,097Faysal 4,969 45,447 271,134 3,495 8,069 22,166 355,280BOP 1,506 22,802 306,561 - 8,348 13,457 352,674Meezan 3,615 11,375 289,811 - 6,011 18,913 329,725HMB 3,982 23,057 247,508 - 8,863 27,985 311,396NIB 2,863 51,507 104,888 - 3,337 15,699 178,294Soneri 2,578 10,485 140,580 - 2,308 13,283 169,234Summit 2,205 9,961 106,256 1,499 2,232 3,347 125,500JS 1,415 20,151 80,055 - 1,820 11,308 114,749BOK 521 15,158 77,218 - 2,717 12,557 108,170

42,055 281,260 2,641,660 17,974 88,231 240,220 3,311,401

Bank Total

Rupees in million

Bills payable Borrowings Deposits Subordinated loans Other liabilities Equity




Income Statement

BAH 14,261 480 3,990 17,771 10,218 7,553 2,355 5,198 (648)SCB 18,806 (925) 5,881 25,612 9,244 16,368 5,669 10,699 (376)Askari 8,599 11,011 3,798 1,386 9,709 (8,323) (2,946) (5,377) 166Faysal 10,845 2,116 4,533 13,262 11,101 2,161 311 1,850 (596)BOP 4,015 (651) 3,597 8,262 5,284 2,978 1,063 1,915 (716)Meezan 10,645 93 3,501 14,053 8,406 5,647 1,690 3,957 (102)HMB 9,072 2,109 4,820 11,782 6,665 5,117 1,591 3,527 (1,634)NIB 3,293 (629) 3,822 7,744 5,632 2,112 532 1,580 (294)Soneri 4,850 735 2,380 6,496 4,965 1,530 494 1,037 (86)Summit 851 (836) 1,756 3,443 4,828 (1,386) 428 (1,813) (10)JS 2,457 264 2,597 4,790 3,712 1,078 240 838 (1)BOK 3,071 82 692 3,680 2,011 1,669 515 1,154 (324)

90,765 13,849 41,366 118,281 81,775 36,504 11,942 24,565 (4,622)

Rupees in million

Profit / (loss)

before taxTaxation

Profit / (loss) after

tax

Other Comprehensive

IncomeBank SpreadNet

provisions / (reversals)


Operating income

Operating expenses


Small Banks

Assets

Silk 5,588 14,853 447 56,088 4,692 10,132 91,800Albaraka 22,293 22,162 - 37,021 2,726 3,558 87,759Islami 5,851 31,610 6,511 38,309 2,958 1,616 86,856DIB 7,132 25,044 9,741 35,540 1,455 1,345 80,257Sindh 3,710 36,786 4,036 26,565 1,766 2,169 75,032ICBC 4,626 47,547 3,490 3,894 243 2,244 62,045Citibank 4,594 25,240 9,202 13,557 154 7,140 59,886Burj 3,808 9,226 7,690 28,955 1,057 2,653 53,389Barclays 5,928 27,709 - 16,562 475 1,728 52,403HSBC 12,436 14,788 3,394 15,503 90 1,812 48,023SAMBA 2,913 13,991 791 18,269 862 3,175 40,002DB 6,402 5,429 9,757 4,265 314 1,637 27,804FWB 1,849 7,458 1,039 9,264 288 864 20,761BOT 5,078 - 2,328 1,754 62 72 9,294

92,208 281,843 58,426 305,546 17,142 40,145 795,311

Cash & bank Investments

Rupees in million


institutions


net of provisions


assets

Other assets Total assetsBank


Silk 2,747 11,382 69,433 - 1,562 6,675 91,800Albaraka 726 2,202 75,647 1,159 2,178 5,848 87,759Islami 836 2,538 75,226 - 2,014 6,242 86,856DIB 1,209 2,938 67,639 - 1,508 6,962 80,257Sindh 363 16,758 45,756 - 828 11,327 75,032ICBC 172 40,029 14,987 - 3,162 3,695 62,045Citibank 1,285 910 40,936 - 8,198 8,557 59,886Burj 507 3,052 42,698 - 1,770 5,361 53,389Barclays 1,026 4,825 38,235 - 1,094 7,223 52,403HSBC 776 336 36,896 - 2,768 7,248 48,023SAMBA 919 2,987 24,633 - 1,332 10,131 40,002DB 325 4,005 15,849 - 2,339 5,287 27,804FWB 152 50 18,338 - 587 1,635 20,761BOT 47 547 4,051 - 128 4,523 9,294

11,090 92,559 570,325 1,159 29,468 90,714 795,311

Total

Rupees in million

Bills payable Borrowings Deposits Subordinated loans Other liabilities EquityBank




Income Statement

Silk 2,160 633 1,325 2,851 4,379 (1,528) (372) (1,157) 258AlBaraka 1,791 171 594 2,214 2,247 (34) 8 (41) (130)Islami 2,500 123 454 2,830 2,522 308 123 185 589DIB 3,114 457 743 3,400 3,189 212 75 137 (51)Sindh 2,258 17 860 3,100 2,147 953 287 666 (427)ICBC 2,962 - (2,040) 921 662 260 (35) 294 252Citibank 2,704 (687) 2,161 5,553 2,666 2,886 1,211 1,675 (63)Burj 952 821 613 744 2,483 (1,739) (606) (1,133) (11)Barclays 1,455 (25) 618 2,098 1,582 516 90 426 (28)HSBC 1,400 493 625 1,533 2,610 (1,078) (107) (971) 575SAMBA 1,384 (90) 160 1,634 1,553 82 (2) 84 (65)DB 925 7 716 1,635 1,144 490 173 318 550FWB 649 172 135 612 834 (222) (16) (206) (157)BOT 57 - 126 183 162 21 8 13 (554)

24,311 2,092 7,090 29,308 28,180 1,127 836 289 738

Profit / (loss)

before taxTaxationBank Spread

Net provisions / (reversals)


Operating income

Operating expenses

Other Comprehensive

Income

Rupees in million


tax


Islamic Banks

Assets

Meezan 32,137 151,614 7,443 127,623 5,595 5,313 329,725Albaraka 22,293 22,162 - 37,021 2,726 3,558 87,759Islami 5,851 31,610 6,511 38,309 2,958 1,616 86,856DIB 7,132 25,044 9,741 35,540 1,455 1,345 80,257Burj 3,808 9,226 7,690 28,955 1,057 2,653 53,389

71,221 239,656 31,385 267,448 13,791 14,485 637,986

Rupees in million


institutions


net of provisions


assets

Other assets Total assetsBank Cash & bank Investments


Meezan 3,615 11,375 289,811 - 6,011 18,913 329,725Albaraka 726 2,202 75,647 1,159 2,178 5,848 87,759Islami 836 2,538 75,226 - 2,014 6,242 86,856DIB 1,209 2,938 67,639 - 1,508 6,962 80,257Burj 507 3,052 42,698 - 1,770 5,361 53,389

6,893 22,105 551,021 1,159 13,481 43,326 637,986

Total

Rupees in million

Bills payable Borrowings Deposits Subordinated loans Other liabilities EquityBank

Income Statement

Meezan 10,645 93 3,501 14,053 8,406 5,647 1,690 3,957 (102)Albaraka 1,791 171 594 2,214 2,247 (34) 8 (41) (130)Islami 2,500 123 454 2,830 2,522 308 123 185 589DIB 3,114 457 743 3,400 3,189 212 75 137 (51)Burj 952 821 613 744 2,483 (1,739) (606) (1,133) (11)

19,002 1,665 5,905 23,241 18,847 4,394 1,290 3,105 295

Rupees in million

Profit / (loss)

before taxTaxation


tax

Other Comprehensive

IncomeBank SpreadNet

provisions


Operating income

Operating expenses





Profitability

The Profit before tax of banks included in this survey has decreased by 8.37% to Rs. 164.4 billion in 2013 from Rs. 179.4 billion in 2012. The main reason for the decline is the decrease in net interest margins experienced by the banks.

Large Banks

Despite reduced net interest margins, large banks except for NBP managed to keep their profits at almost 2012 level. This was mainly due to reduced requirement for provisions. However, NBP registered a significant increase in provisions due to problems at one of its overseas locations.

36,133

7,029

28,965

32,932

14,931 6,807

35,562 22,184

28,316

32,065

16,112 6,783

-00 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000

HB

L

NB

P

UB

L

MC

B

ABL

BAF

Rup

ees

in m

illio

ns

2013 2012

Medium Size Banks

The medium sized banks experienced mixed results, with NIB, SCB and BOP reporting significant increase in profits and Askari and Summit reporting significant declines.

7,553

16,368

(8,323)

2,978

2,161

5,117

5,647

2,112

1,078

1,669

1,530

(1,386)

8,938

9,322 1,773

1,515

1,835

5,041

5,230 440

1,159

1,572

1,722 (2,499)

(10,000)

(5,000)

-00

5,000

10,000

15,000

20,000

BAH

SCB

Askari

BOP

Faysal

HM

B

Meezan

NIB

JS BOK

Soneri

Summ

it

Rup

ees

in m

illio

ns

2013 2012

Small Banks

Small banks also experienced mixed trends in their profitability with AlBaraka and Barclays registering significant increase and Silk, HSBC, and Burj registering significant declines. .

953

(1,528)

2,886

308

(34)

212

(1,078)

516

(1,739)

82

490

(222)

260 21

1,286

(529)

2,403

463

(956)

501

(488)

(1,041)

33

164

551 95

(180)

71

(2,000)

(1,000)

-00

1,000

2,000

3,000

4,000

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SAM

BA

DB

FWB

ICBC

BOT

Rup

ees

in m

illio

ns

2013 2012




Islamic Banks

5,647

308

(34)

212

(1,739)

5,230

463

(956)

501 33

(3,000) (2,000) (1,000)

-00 1,000 2,000 3,000 4,000 5,000 6,000 7,000

Meezan

Islami

Albaraka

DIB

BurjRup

ees

in m

illio

ns

2013 2012




Spread as per SBP

The overall average spread of the industry for last five years as disclosed in SBP Statistical Bulletins was as follows:

2013 2012 2011 2010 2009 In percentage

Weighted average lending rate

11.3 12.8 13.6 13.4 14.0

Weighted average deposit rate

5.1 5.8 6.0 5.9 6.5

Banking spread 6.2 7.0 7.6 7.5 7.5

(Source: Monthly SBP Statistical Bulletins)

Spread as per survey

The average spread of banks included in this survey was 4.7% (2012: 5.6%).

Large Banks

Average spread of large banks in 2013 was 5.5% as compared to 7% in 2012.

4.7

6.0 5.3

6.3 5.4 5.2

6.3

7.0 6.7

8.0 7.2 6.2

HB

L

NB

P

UB

L

MC

B

ABL

BAF

In percentages

2013 2012

Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends

Spread

Medium Size Banks

Average spread of medium sized banks in 2013 was 4.3% as compared to 5.2% in 2012.

3.5

8.2

4.1

2.2

6.1

4.1 3.6

4.6

5.0 3.4

3.5

3.7

4.5

9.1

5.5

1.6

6.7

4.9

5.2 4.6

7.4

4.3

4.4 3.7

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

JS BOK

Soneri

Summ

it

In percentages

2013 2012

Small Banks

Average spread of small banks in 2013 was 4.1% as compared to 5.5%in 2012.

6.8

4.4

4.6

5.4

3.5

6.3

3.6

3.5 2.7

3.1

6.6

5.3

(1.0)

3.4

7.7

6.4

7.0 6.6

2.5

6.9

5.0

2.0

2.6

5.1

8.1

8.8

5.8

2.1

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SAM

BA

DB

FWB

ICBC

BOT

In percentages

2013 2012






Islamic Banks

Average spread of Islamic banks in 2013 was 6.4% as compared to 7.6% in 2012.

3.6

5.4 3.5

10.4 8.9

5.2

6.6

2.5

12.7

11.1

Meezan

Islami

Albaraka

DIB

Burj

In percentages

2013 2012





Non-Funded Income

Non Funded Income as a percentage of net interest income, of banks included in this survey has increased from 30.5% in 2012 to 33.6% in 2013. The increase has been largely in large banks where the ratio has increased by 4.3%.

Non-funded income to net interest income

Large Banks

26.3

49.8 37.4

22.6

24.1

36.7

21.5

39.4

38.9

18.5

20.8

30.2

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

2013 2012

Medium Size Banks

22.0

27.3

28.3

51.6

34.7

37.9

18.4

69.1

62.1

16.0

36.2

184.4

16.6

30.8

27.5

70.6

40.1

35.6

13.5

59.9

44.7

17.1

27.4

714.7

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

JS BOK

Soneri

Summ

it

In percentages

2013 2012

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed

Small Banks

9.3

50.6

76.5

17.9

29.5

22.9

44.6

42.5

26.0

11.6

75.6

12.9

(68.9)

221.9

7.1

46.1

22.0

12.7

26.7

20.9

41.2

22.6

14.4

8.7

52.5 11.3

158.4

230.9

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SAM

BA

DB

FWB

ICBC

BOT

In percentages

2013 2012

Islamic Banks

18.4

17.9

29.5

22.9

26.0

13.5

12.7

26.7

20.9

14.4

Meezan

Islami

Albaraka

DIB

Burj

In percentages

2013 2012

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed.

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

Net interest income means mark-up/return/interest earned (before provisions) less mark-up/return/interest expensed.



Staff cost is one of the most integral costs for the bank, averaging approximately 50.24% (2012: 49.22%) of total operating expenses.

Large Banks

2013 2012 2013 2012 2013 2012

HBL 19,131 17,084 13,842 13,978 1,382 1,222 NBP 26,623 25,250 17,153 17,405 1,552 1,451 UBL 11,997 11,085 13,608 13,356 882 830 MCB 8,834 7,234 12,109 12,934 730 559 ABL 8,345 8,402 10,213 13,059 817 643 BAF 8,480 7,279 10,598 9,897 800 735

83,410 76,334 77,523 80,629

Rupees in millions Numbers Rupees in thousand

Cost per staffStaff cost Number of staff

Medium Size Banks

2013 2012 2013 2012 2013 2012

BAH 4,820 4,130 7,209 6,577 669 628 SCB 5,344 5,105 4,589 5,041 1,164 1,013 Askari 4,493 4,510 5,631 5,693 798 792 BOP 2,784 2,337 6,093 5,492 457 426 Faysal 5,117 5,024 6,866 6,462 745 777 HMB 3,289 2,849 3,581 3,303 919 863 Meezan 4,081 3,390 6,248 5,953 653 569 NIB 2,850 2,578 3,110 2,834 916 910 JS 1,447 1,205 1,571 1,945 921 619 BOK 1,185 967 1,501 1,430 789 676 Soneri 1,852 1,765 3,708 3,275 499 539 Summit 1,676 1,570 2,556 2,514 656 624

38,938 35,430 52,663 50,519

Rupees in millions Numbers Rupees in thousand

Staff cost Number of staff Cost per staff

Small Banks

2013 2012 2013 2012 2013 2012

Sindh 1,062 617 1,588 1,241 669 498 Silk 2,160 2,229 2,886 2,750 749 810 Citibank 813 1,096 230 677 3,537 1,619 Islami 1,084 962 1,808 1,648 600 584 Albaraka 961 900 1,129 1,293 851 696 DIB 1,295 1,114 1,969 1,739 658 641 HSBC 1,442 1,603 442 493 3,262 3,252 Barclays 683 913 247 249 2,765 3,668 Burj 971 645 1,155 1,529 840 422 SAMBA 698 678 614 732 1,137 926 DB 437 429 109 112 4,010 3,832 FWB 461 417 661 641 698 650 ICBC 398 271 55 40 7,237 6,782 BOT 65 64 53 43 1,218 1,482

12,529 11,938 12,946 13,187

Rupees in thousand

Number of staff Cost per staffStaff cost

Rupees in millions Numbers

Staff cost includes salaries, allowances, etc., staff retirement benefits.

Staff Costs





Islamic Banks

2013 2012 2013 2012 2013 2012

Meezan 4,081 3,390 6,248 5,953 653 598 Islami 1,084 962 1,808 1,648 600 581 Albaraka 961 900 1,129 1,293 851 615 DIB 1,295 1,114 1,969 1,739 658 656 Burj 971 645 1,155 1,529 840 473

8,392 7,011 12,309 12,162

Staff cost Number of staff Cost per staff

Rupees in millions Numbers Rupees in thousandStaff cost includes salaries, allowances, etc., staff retirement benefits.




Remuneration of Executives

Large Banks

2013 2012 2013 2012 2013 2012

HBL 36,845 37,868 6,211,147 5,260,598 3,081 2,688 NBP 46,109 49,833 5,057,765 4,386,428 1,887 1,509 UBL 138,368 97,924 7,202,856 5,825,733 1,722 1,584 MCB 54,303 83,158 2,811,350 2,528,935 918 821 ABL 53,622 64,570 3,587,100 2,889,470 1,346 1,241 BAF 87,191 82,133 3,640,889 3,007,831 1,276 1,071

416,438 415,486 28,511,107 23,898,995 10,230 8,914

Remuneration of Executives Number of Executives

Rupees in thousands Numbers

CEO Remuneration

Medium Size Banks

2013 2012 2013 2012 2013 2012

BAH 37,678 25,386 2,057,796 1,758,093 973 781 SCB 125,295 143,531 2,699,712 2,519,495 985 907 Askari 48,445 34,138 1,880,303 1,558,224 609 530 BOP 37,724 33,654 666,303 528,168 401 320 Faysal 90,841 71,576 1,996,258 1,986,325 697 741 HMB 58,849 68,428 2,588,001 2,148,211 929 835 Meezan 50,740 48,027 1,042,403 765,587 485 365 NIB 184,682 74,524 1,572,183 1,158,967 706 611 JS 45,905 32,794 821,562 659,205 343 286 BOK 4,810 10,106 154,231 140,584 48 50 Soneri 68,537 52,873 990,109 573,165 479 302 Summit 28,077 27,604 770,320 638,433 339 284

781,583 622,641 17,239,181 14,434,457 6,994 6,012

CEO Remuneration Remuneration of Executives Number of Executives


Small Banks

2013 2012 2013 2012 2013 2012

Sindh 66,927 44,487 420,060 246,695 164 92 Silk 62,570 71,524 1,074,239 1,206,661 370 382 Citibank 70,302 64,419 552,908 922,194 162 257 Islami 43,024 18,009 313,341 228,322 171 114 Albaraka 39,396 34,277 436,622 394,748 215 208 DIB 32,869 28,634 574,035 467,458 204 186 HSBC 36,251 59,502 368,510 423,264 108 113 Barclays 46,566 45,307 303,189 451,646 131 189 Burj 84,052 48,550 531,140 366,617 292 240 SAMBA 50,583 33,274 406,496 347,845 147 140 DB 30,206 30,206 202,772 191,325 63 63 FWB 11,778 16,745 159,336 132,533 80 63 ICBC 39,384 27,926 311,114 191,852 23 18 BOT 9,370 10,008 16,759 18,198 5 5

623,278 532,868 5,670,521 5,589,358 2,135 2,070

Numbers

Remuneration of ExecutivesCEO Remuneration

Rupees in thousands

Number of Executives

Islamic Banks

2013 2012 2013 2012 2013 2012

Meezan 50,740 48,027 1,042,403 765,587 485 365 Islami 43,024 18,009 313,341 228,322 171 114 Albaraka 39,396 34,277 436,622 394,748 215 208 DIB 32,869 28,634 574,035 467,458 204 186 Burj 84,052 48,550 531,140 366,617 292 240

250,081 177,497 2,897,541 2,222,732 1,367 1,113

Number of Executives


CEO Remuneration Remuneration of Executives

Remuneration of executives





Total loans and advances of banks under review have shown an increase of 8.22% in 2013 (2012:13.2%) to Rs. 4,059 billion at 31 December 2013 (2012: 3,751 billion). The growth of various categories of banks was as follows:

2013 2012Large Banks 3.8% 14.6%Medium Size Banks 14.4% 11.1%Small Banks 18.8% 8.7%Islamic Banks 37.4% 21.2%

Growth in Loans and Advances

Large Banks

2012-13 2011-12 2013 2012 2011

HBL 12.8 9.3 563,701 499,818 457,368 NBP (5.8) 24.7 620,217 658,654 528,122 UBL 7.6 13.1 415,283 385,834 341,140 MCB 3.6 5.4 248,522 239,789 227,574 ABL (1.5) 10.9 267,036 271,116 244,440 BAF 11.5 17.9 260,780 233,933 198,469

3.8 14.6 2,375,539 2,289,144 1,997,113

Rupees in millionsIn percentages

Annual increase Advances

11.0

8.4

10.3

4.5

4.5

14.6

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

Annualised Increase (2011 13)

Loans and Advances



Medium Size Banks

2012-13 2011-12 2013 2012 2011

BAH 13.3 28.7 167,569 147,860 114,863 SCB 0.9 5.5 146,239 144,918 137,309 Askari 13.8 (4.6) 163,561 143,728 150,713 BOP 5.1 17.7 157,240 149,566 127,108 Faysal 6.9 16.3 184,190 172,299 148,162 HMB 17.6 (2.6) 129,834 110,444 113,347 Meezan 43.9 26.0 127,623 88,678 70,377 NIB 14.6 17.6 82,026 71,586 60,862 JS 69.6 10.4 33,769 19,909 18,030 BOK 32.7 19.9 35,450 26,722 22,288 Soneri 26.5 17.6 97,179 76,825 65,340 Summit 3.2 (6.2) 54,208 52,549 56,000

14.4 11.1 1,378,888 1,205,084 1,084,399

In percentages Rupees in millions

Annual increase Advances

20.8

3.2

4.2

11.2

11.5

7.0

34.7

16.1

36.9

26.1

22.0

(1.6)

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

JS

BOK

Soneri

Summit

In percentages





Small Banks

2012-13 2011-12 2013 2012 2011

Sindh 37.8 165.6 26,565 19,282 7,259 Silk 14.3 (1.8) 56,088 49,060 49,936 Citibank (25.7) (3.0) 13,557 18,256 18,820 Islami 39.6 11.2 38,309 27,433 24,665 Albaraka 28.6 (1.3) 37,021 28,782 29,155 DIB 35.1 10.2 35,540 26,315 23,889 HSBC (11.8) (15.4) 15,503 17,586 20,794 Barclays (6.7) (15.5) 16,562 17,744 20,998 Burj 23.9 88.0 28,955 23,371 12,431 SAMBA 18.3 (2.4) 18,269 15,445 15,831 DB 7.2 33.2 4,265 3,980 2,987 FWB 11.1 8.2 9,264 8,335 7,701 ICBC 6,781.1 Nil 3,894 57 Nil BOT 8.4 (26.9) 1,754 1,619 2,215

18.8 8.7 305,546 257,265 236,681

AdvancesAnnual increase


91.3

6.0

(15.1)

24.6

12.7

22.0

(13.7)

(11.2)

52.6

7.4

19.5

9.7

(11.0)

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HSBC

Barclays

Burj

SAMBA

DB

FWB

BOT

In percentages



Islamic Banks

2012-13 2011-12 2013 2012 2011

Meezan 43.9 26.0 127,623 88,678 70,377 Islami 39.6 11.2 38,309 27,433 24,665 Albaraka 28.6 (1.3) 37,021 28,782 29,155 DIB 35.1 10.2 35,540 26,315 23,889 Burj 23.9 88.0 28,955 23,371 12,431

37.4 21.2 267,448 194,579 160,517


AdvancesAnnual increase

34.7

24.6

12.7

22.0

52.6

Meezan

Islami

Albaraka

DIB

Burj

In percentages





Market Share of Loans and Advances

2013 2012 2013 2012

NBP 15.4 17.7 620,217 658,654 HBL 14.0 13.4 563,701 499,818 UBL 10.3 10.3 415,283 385,834 ABL 6.6 7.3 267,036 271,116 BAF 6.5 6.3 260,780 233,933 MCB 6.2 6.4 248,522 239,789 Faysal 4.6 4.6 184,190 172,299 BAH 4.2 4.0 167,569 147,860 Askari 4.1 3.9 163,561 143,728 BOP 3.9 4.0 157,240 149,566 SCB 3.6 3.9 146,239 144,918 HMB 3.2 3.0 129,834 110,444 Less than 3% 17.5 15.3 706,848 570,163

100 100 4,031,020 3,728,122


NBP15%

HBL14%

UBL10%

ABL7%MCB

6%BAF6%

Faysal5%

BAH4%

SCB4%

Askari4%

BOP4%

HMB3%

Less than 3%18%


Banks with less than 3% market share

2013 2012 2013 2012

Meezan 3.17 2.38 127,623 88,678 Soneri 2.41 2.06 97,179 76,825 NIB 2.03 1.92 82,026 71,586 Silk 1.39 1.32 56,088 49,060 Summit 1.34 1.41 54,208 52,549 Islami 0.95 0.74 38,309 27,433 Albaraka 0.92 0.77 37,021 28,782 DIB 0.88 0.71 35,540 26,315 BOK 0.88 0.72 35,450 26,722 JS 0.84 0.53 33,769 19,909 Sindh 0.66 0.52 26,565 19,282 SAMBA 0.45 0.41 18,269 15,445 Barclays 0.41 0.48 16,562 17,744 HSBC 0.38 0.47 15,503 17,586 Citibank 0.34 0.49 13,557 18,256 FWB 0.23 0.22 9,264 8,335 DB 0.11 0.11 4,265 3,980 ICBC 0.10 0.09 3,894 57BOT 0.04 0.04 1,754 1,619

17.5 15.4 706,846 570,163


Meezan3.2%

Soneri2.4%

NIB2.0%

Summit1.3%Silk1.4%

Albaraka0.9%

Islami1.0%

BOK0.9%

DIB0.9%

JS0.8%

Sindh0.7%

Citibank0.3%

HSBC0.4%

Barclays0.4%

SAMBA0.5%

FWB0.2% DB

0.1% BOT0.0% ICBC

0.1%



The total average advances to total average deposits ratio of the banks included in this survey has decreased to 49.7% in 2013 from 52.1% in 2012 due to growth rate of deposits being higher than growth rate of advances.

Large Banks

2013 2012 2011 2013 2012 2011

HBL 540,147 476,897 433,206 1,401,230 1,214,964 933,632 NBP 608,731 646,036 516,760 1,101,845 1,037,049 927,411 UBL 398,033 368,984 323,783 889,526 752,786 634,797 MCB 234,865 226,235 214,474 632,309 544,988 491,147 ABL 252,107 252,224 225,870 608,407 514,702 399,561 BAF 248,260 221,932 188,378 525,526 457,044 401,233

2,282,143 2,192,308 1,902,471 5,158,843 4,521,533 3,787,781

Deposits

Rupees in millions

Advances*

38.9

58.7 46.7 39.2

44.9

47.942.4

59.2 49.9 42.5

52.3

47.8

HB

L

NB

P

UB

L

MC

B

ABL

BAF

In percentages

2013 2012

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.

Average advances to average deposits ratio

Liquidity (Average Advances to Average Deposits)



Medium Size Banks

2013 2012 2011 2013 2012 2011Rupees in millions

BAH 149,001 130,288 99,363 386,099 340,387 302,097 SCB 129,769 128,039 119,863 296,377 266,599 235,875 Askari 154,608 135,952 141,474 335,173 306,930 291,499 BOP 149,201 142,505 120,991 306,561 266,056 237,897 Faysal 165,023 153,475 131,899 271,134 240,708 214,615 HMB 109,221 89,734 90,164 247,508 217,671 185,281 Meezan 118,234 82,713 64,347 289,811 230,426 170,030 NIB 69,205 61,570 51,124 104,888 91,094 85,472 JS 31,793 18,886 16,782 80,055 61,935 40,174 BOK 33,956 25,595 21,296 77,218 60,043 45,548 Soneri 89,232 68,041 56,879 140,580 120,591 99,419 Summit 49,996 49,266 51,586 106,256 96,815 89,665

1,249,239 1,086,064 965,768 2,641,660 2,299,255 1,997,572

Advances* Deposits

38.4

45.8

45.3

50.9

62.2

42.8

38.6

66.7

35.7

43.4

60.2 48.935.7

49.3

46.4

52.3

62.7 44.6 36.7

63.8

34.9

44.4

56.8

54.1

BAH

SCB

Askari

BOP

Faysal

HM

B

Meezan

NIB

JS BOK

Soneri

Summ

it

In percentages

2013 2012

*Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.





Small Banks

2013 2012 2011 2013 2012 2011

Sindh 19,185 18,162 7,059 45,756 31,470 23,518 Silk 52,679 45,786 46,086 69,433 69,050 64,072 Citibank 13,557 18,230 17,705 40,936 64,294 61,679 Islami 19,185 26,812 23,865 75,226 64,216 50,569 Albaraka 34,819 26,791 27,419 75,647 63,279 61,559 DIB 33,602 24,715 22,341 67,639 53,110 38,492 HSBC 15,167 16,892 20,298 36,896 38,957 46,171 Barclays 12,137 13,330 20,998 38,235 29,958 44,665 Burj 27,408 22,381 12,209 42,698 35,922 20,341 SAMBA 15,797 12,990 13,417 24,633 22,754 17,669 DB 3,835 3,680 2,814 15,849 18,354 11,119 FWB 9,214 8,261 7,650 18,338 19,193 13,815 ICBC 3,894 57 Nil 14,987 4,168 1,524 BOT 1,754 1,619 2,140 4,051 2,402 1,992

262,233 239,706 224,001 570,324 517,127 457,185

Rupees in millions

Advances* Deposits

48.4

71.1

30.2

33.0

44.3

48.3 42.3

37.3

63.3

60.7

22.0

46.6

20.6

52.345.9

69.0

28.5

44.1

43.4

51.4 43.7

46.0

61.5

65.3

22.0

48.2

1.0

85.6

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HS

BC

Barclays

Burj

SAM

BA

DB

FWB

ICBC

BOT

In percentages

2013 2012




Islamic Banks

Deposits2013 2012 2011 2013 2012 2011

Meezan 118,234 82,713 64,347 289,811 230,426 170,030 Islami 19,185 26,812 23,865 75,226 64,216 50,569 Albaraka 34,819 26,791 27,419 75,647 63,279 61,559 DIB 33,602 24,715 22,341 67,639 53,110 38,492 Burj 27,408 22,381 12,209 42,698 35,922 20,341

233,248 183,412 150,181 551,021 446,953 340,991

Advances*

Rupees in millions

38.6 33.0

44.3

48.3

63.3

36.7

44.1

43.4

51.4

61.5

Meezan

Islami

Albaraka

DIB

Burj

In percentages

2013 2012





Deposits of banks included in this survey increased by 14.1% to Rs.8,371 billion at 31 December 2013 compared to Rs. 7,338 billion at 31 December 2012.

Growth in Deposits

Large Banks

2012-13 2011-12 2013 2012 2011

HBL 15.3 30.1 1,401,230 1,214,964 933,632 NBP 6.2 11.8 1,101,845 1,037,049 927,411 UBL 18.2 18.6 889,526 752,786 634,797 MCB 16.0 11.0 632,309 544,988 491,147 ABL 18.2 28.8 608,407 514,702 399,561 BAF 15.0 13.9 525,526 457,044 401,233

14.1 19.4 5,158,843 4,521,533 3,787,781


Annual Increase Deposits

22.5

9.0

18.4

13.5

23.4

14.4

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

Annualised Increase (2011 13))

Deposits



Medium Size Banks

2012-13 2011-12 2013 2012 2011

BAH 13.4 12.7 386,099 340,387 302,097 SCB 11.2 13.0 296,377 266,599 235,875 Askari 9.2 5.3 335,173 306,930 291,499 BOP 15.2 11.8 306,561 266,056 237,897 Faysal 12.6 12.2 271,134 240,708 214,615 HMB 13.7 17.5 247,508 217,671 185,281 Meezan 25.8 35.5 289,811 230,426 170,030 NIB 15.1 6.6 104,888 91,094 85,472 JS 29.3 54.2 80,055 61,935 40,174 BOK 28.6 31.8 77,218 60,043 45,548 Soneri 16.6 21.3 140,580 120,591 99,419 Summit 9.8 8.0 106,256 96,815 89,665

14.9 15.1 2,641,660 2,299,255 1,997,572


Annual Increase Deposits

13.1

12.1

7.2

13.5

12.4

15.6

30.6

10.8

41.2

30.2

18.9

8.9

BAH

SCB

Askari

BOP

Faysal

HMB

Meezan

NIB

JS

BOK

Soneri

Summit

In percentages





Small Banks

2012-13 2011-12 2013 2012 2011Sindh 45.4 33.8 45,756 31,470 23,518 Silk 0.6 7.8 69,433 69,050 64,072 Citibank (36.3) 4.2 40,936 64,294 61,679 Islami 17.1 27.0 75,226 64,216 50,569 Albaraka 19.5 2.8 75,647 63,279 61,559 DIB 27.4 38.0 67,639 53,110 38,492 HSBC (5.3) (15.6) 36,896 38,957 46,171 Barclays 27.6 (32.9) 38,235 29,958 44,665 Burj 18.9 76.6 42,698 35,922 20,341 SAMBA 8.3 28.8 24,633 22,754 17,669 DB (13.6) 65.1 15,849 18,354 11,119 FWB (4.5) 38.9 18,338 19,193 13,815 ICBC 259.6 173.5 14,987 4,168 1,524 BOT 68.6 20.6 4,051 2,402 1,992

10.3 13.1 570,324 517,127 457,185

DepositsAnnual Increase

39.5

4.1

(18.5)

22.0

10.9

32.6

(10.6)

(7.5)

44.9

18.1

19.4

15.2

213.6

42.6

Sindh

Silk

Citibank

Islami

Albaraka

DIB

HSBC

Barclays

Burj

SAMBA

DB

FWB

ICBC

BOT

In percentages



Islamic Banks

2012-13 2011-12 2013 2012 2011In percentages Rupees in millions

Meezan 25.8 35.5 289,811 230,426 170,030 Islami 17.1 27.0 75,226 64,216 50,569 Albaraka 19.5 2.8 75,647 63,279 61,559 DIB 27.4 38.0 67,639 53,110 38,492 Burj 18.9 76.6 42,698 35,922 20,341

23.3 31.1 551,021 446,953 340,991

DepositsAnnual Increase

30.6

22.0

10.9

32.6

44.9

Meezan

Islami

Albaraka

DIB

Burj

In percentages





Market Share of Customer Deposits

2013 2012 2013 2012

HBL 17.17 17.03 1,379,795 1,194,841 NBP 11.90 12.45 956,406 873,529 UBL 10.85 10.52 871,889 738,100 MCB 7.72 7.64 620,384 536,202 ABL 7.50 7.27 602,841 509,851 BAF 6.09 6.03 488,971 423,356 BAH 4.63 4.78 372,029 334,987 Askari 4.08 4.23 327,667 296,726 BOP 3.71 3.74 298,293 262,142 SCB 3.68 3.79 295,373 265,783 Meezan 3.49 3.28 280,373 230,167 Faysal 3.27 3.29 262,395 230,730 HMB 3.03 2.91 243,300 204,032 Less than 3 % 12.88 13.04 1,034,700 914,587

100 100 8,034,416 7,015,031


HBL17%

NBP12%

UBL11%

MCB8%ABL

7%BAF6%

BAH5%

SCB4%

Askari4%

BOP4%

Faysal3%

HMB3%

Meezan3%

Less than 3 %13%

*Deposits from financial institutions have been excluded to analyse deposits from customers.


Banks with less than 3% market share

2013 2012 2013 2012

Soneri 1.74 1.72 140,054 120,341 Summit 1.27 1.26 102,329 88,623 NIB 1.23 1.24 98,769 86,969 BOK 0.96 0.85 77,200 59,974 Islami 0.93 0.89 74,332 62,717 JS 0.90 0.79 72,444 55,291 Silk 0.84 0.97 67,497 67,869 DIB 0.83 0.76 66,527 53,009 Albaraka 0.80 0.83 64,256 58,065 Sindh 0.54 0.45 43,664 31,328 Citibank 0.50 0.89 39,795 62,408 Barclays 0.48 0.43 38,165 29,936 Burj 0.45 0.48 36,416 33,900 HSBC 0.45 0.54 35,762 38,072 SAMBA 0.30 0.31 24,389 21,994 FWB 0.23 0.27 18,238 19,192 DB 0.20 0.26 15,841 18,346 ICBC 0.19 0.04 14,977 4,168 BOT 0.05 0.03 4,045 2,385

12.88 13.02 1,034,700 914,587


Soneri1.7%

NIB1.2%

Summit1.3%

Silk0.8%

Citibank0.5%Islami

0.9%BOK1.0%

Albaraka0.8%

JS0.9%

DIB0.8%

HSBC0.4%

Burj0.5%

Sindh0.5%

Barclays0.5%

SAMBA0.3%

FWB0.2%

DB0.2% ICBC

0.2% BOT0.1%

* Deposits from financial institutions have been excluded to analyse deposits from customers.



Large Banks

Banks Rating Agency

Credit Rating Assigned

Short Term

LongTerm

Habib Bank Limited JCR-VIS A-1+ AAA

National Bank of Pakistan JCR-VIS A-1+ AAA

United Bank Limited JCR-VIS A-1+ AA+

MCB Bank Limited PACRA A1+ AAA

Allied Bank Limited PACRA A1+ AA+

Bank Alfalah Limited PACRA A-1+ AA

Medium Size Banks

Banks Rating Agency


Short Term

LongTerm

Bank Al-Habib Limited PACRA A1+ AA+

Standard Chartered Bank (Pakistan) Limited PACRA A1+ AAA

Askari Bank Limited PACRA A-1+ AA

The Bank of Punjab PACRA A1+ AA-

Faysal Bank Limited PACRA A1+ AA

JCR-VIS A-1+ AA

Habib Metropolitan Bank Limited PACRA A1+ AA+

The Bank of Punjab PACRA A1+ AA-

Meezan Bank Limited JCR-VIS A-1+ AA

NIB Bank Limited PACRA A1+ AA-

Soneri Bank Limited PACRA A1+ AA-

Summit Bank Limited JCR-VIS A-3 A-

JS Bank Limited PACRA A1 A+

The Bank of Khyber JCR-VIS A-1 A

Credit Ratings



Small Banks

Banks Rating Agency


Short Term

LongTerm

Sindh Bank Limited JCR-VIS A-1+ AA-

Silkbank Limited JCR-VIS A-2 A-

CitiBank N.A. (Pakistan Branches) Moodys P-1 A2

BankIslami Pakistan Limited PACRA A-1 A

Al-Baraka Bank (Pakistan) Limited

PACRA A1 A

JCR-VIS A-1 A

Dubai Islamic Bank (Pakistan) Limited JCR-VIS A-1 A

HSBC Bank Middle East Limited

Moody's P-1 A2

Fitch F1+ AA-

Barclays Bank PLC (Pakistan Branches)

Standard & Poors A-1 A

Moodys P-1 A2

Fitch F1 A

Burj Bank Limited JCR-VIS A-1 A

Samba Bank Limited JCR-VIS A-1 AA-

Deutsche Bank AG (Pakistan Branches)

Standards & Poor's A-1 A

Moodys P-1 A2

Fitch F1+ A+

First Women Bank Limited PACRA A2 A-

Industrial and Commercial Bank of China Limited(Pakistan Branches) Moodys P-1 A1

Bank of Tokyo-Mitsubishi UFJ Limited

Standard & Poors A-1 A+

Moodys P-1 Aa3

Fitch F1 A



Large Banks

Banks Legend Number of Branches *

2013 2012Habib Bank Limited HBL 1546 1497National Bank of Pakistan NBP 1342 1283United Bank Limited UBL 1283 1278MCB Bank Limited MCB 1208 1179Allied Bank Limited ABL 948 873Bank Alfalah Limited BAF 423 353

6750 6463

Medium Size Banks


2013 2012Bank Al-Habib Limited BAH 320 308Standard Chartered Bank (Pakistan) Limited SCB 116 130Askari Bank Limited Askari 281 261Bank of Punjab BOP 334 306Faysal Bank Limited Faysal 269 265Habib Metropolitan Bank Limited HMB 174 143Meezan Bank Limited Meezan 351 310NIB Bank Limited NIB 179 179Soneri Bank Limited Soneri 239 233Summit Bank Summit 187 186JS Bank Limited JS 211 185The Bank of Khyber BOK 100 77

2761 2583

Small Banks


2013 2012

Sindh Bank Sindh 200 160Silkbank Limited Silk 88 85Citibank N.A (Pakistan Branches) Citi 3 7BankIslami Pakistan Limited Islami 201 141Al-Baraka Bank (Pakistan) Limited Albaraka 110 94Dubai Islamic Bank (Pakistan) Limited DIB 125 100HSBC Bank Middle East Limited HSBC 10 10Barclays Bank PLC (Pakistan Branches) Barclays 7 7Burj Bank Limited Burj 75 75Samba Bank Limited SAMBA 28 28Deutsche Bank AG (Pakistan Branches) DB 3 3First Women Bank Limited FWB 41 41Industrial and Commercial Bank of China Limited ICBC 2 2Bank of Tokyo-Mitsubishi UFJ Limited(Karachi Branches) BOT 1 1

894 754

Number of Branches and Legend

* As at 31 December



. 2014 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.




Average Advances Gross advances less provision. The average of opening and closing advances at two year ends is taken.

Average Assets The average of opening and closing total assets at two year ends is taken.

Average Deposits The average of opening and closing deposits at two year ends is taken.

Average Earning Assets

Deposits with treasury & other banks, lending to financial institutions, investments and advances. The average of opening and closing earning assets at two year ends is taken.

Average Equity Head office capital account/ paid-upcapital, reserves, unappropriated profit/accumulated loss, minority interestand surplus/ (deficit) on revaluation of assets. The average of opening and closing equity at two year ends is taken.

Annual Increase The percentage change compared to the previous year.

Annualised Increase The percentage change over the last two years on annualised basis, i.e.

Figure (year 2013) - 1 Figure (year 2011)

Average Paying Funds Borrowings from financial institutions,remunerative deposits, sub-ordinated loans and liabilities against assets subject to finance lease. The average of opening and closing paying funds at two year endsis taken.

Cost of Funds Mark-up/ Return/ Interest expense.

CASA Current and saving deposits to total deposits.

Equity Equity includes shares capital / head office capital account, reserves, unappropriated profit/accumulated loss, minority interest and surplus / deficit onrevaluation of assets.

Funded Revenue Mark-up/ Return/ Interest earned, dividend income, gain/loss on sale of securities, profit/loss from associates and unrealized gain/loss on held for trading securities.

Definitions



Gross Advances Loans, cash credits, overdrafts, ijaras, etc. And local & foreign bills discounted & purchased before provisions.

Impairment Cover Number of times impairment charge on loans and advances and investments is covered by net profits before charging impairment.

Interest Bearing Assets Interest bearing assets means: cash and balances with treasury banks, balances with other banks, lending to financial institutions, fixed income investments and advances.

Interest Bearing Liabilities

Interest bearing liabilities means: borrowings, deposits and other accounts, sub-ordinated loans and liabilities against assets subject to finance lease.

Non-funded Income Fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

Non-markup / Non-Interest Income

Includes Non-funded income, dividend income, gain on sale of securities, unrealised profit on revaluation of investments classified as held for tradingand share of profit from joint venture and associate.

Net Interest Income Ratio

Mark-up/return/interest earned (before provisions) as a percentage of interest bearing assets less mark-up/return/interest expensed as a percentage of interest bearing liabilities.

Net Provisions Charge & reversal of provision against non-performing advances, for diminution in value of investments, bad debts directly written-off and recoveries of previously written-off debts.

Other Comprehensive Income

Includes effect of translation of net investment in foreign branches, gains and losses on remeasurement of actuarial liability, surplus/ (deficit) on revaluation of fixed assets and investments. i.e all form of other comprehensive income including those taken below equity in accordance with the requirements of Companies Ordinance 1984.

Operating Cost Includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.




Operating Fixed Assets Operating fixed assets include intangible assets.

Other Assets Other assets include deferred tax assets.

Other Liabilities Other liabilities include deferred tax liabilities and liabilities against assets subject to finance lease.

Remuneration per Executive

Remuneration of executives divided by number of executives.

Return on Average Assets

Net Income as a percentage of average total assets.

Return on Average Equity

Profit before tax as a percentage of average equity.

Spread Difference between mark-up/return/interest earned on loans and advances as a percentage of average loans and advances, at two year ends, and mark-up/return/interest expense of deposits as a percentage of average deposits, at two year ends.

Staff Cost Salaries, allowances, etc., staff retirement benefits and cost of redundancy / voluntary retirement / severanceexcluding Workers Welfare Fund.

Taxation Charge for current (including prior) and deferred taxation in the profit and loss account.



The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

The KPMG name, logo and cutting through complexity are registered trademarks of KPMG International Cooperative (KPMG International).

Offices in Pakistan

Karachi Office Sheikh Sultan Trust Building Beaumont Road Karachi 75300Phone +92 (21) 3568 5847 Fax +92 (21) 3568 5095 eMail [email protected]

Lahore Office 2nd Floor, Servis House 2-Main Gulberg, Jail RoadLahore 54000Phone +92 (42) 3579 0901-6 Fax +92 (42) 3579 0907 eMail [email protected]

Islamabad Office Sixth Floor, State Life Building Blue Area Islamabad Phone +92 (51) 282 3558 Fax +92 (51) 282 2671 eMail [email protected]

www.kpmg.com.pk

An Economic & Budget Commentary

kpmg

Banking Survey 2013

Documents

Transcript of Banking Survey 2013