Dubai Islamic Bank Pakistan Limited...2020/09/30 · Dubai Islamic Bank Pakistan Limited Condensed...
Transcript of Dubai Islamic Bank Pakistan Limited...2020/09/30 · Dubai Islamic Bank Pakistan Limited Condensed...
Dubai Islamic Bank
Pakistan Limited
Financial Statements
For the period ended September 30, 2020
Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020
ASSETS
Note September 30, December 31,
2020 2019 (Un-aadited) (Audited)
-— Rupees in '000
Cash and balances with treasury banks Balances with other banks Due from financial institutions Investments Islamic financing and related assets Fixed assets Intangible assets Eteferred tax assets Other assets
6 7 8 9 10 11 12
13
21331,445 3,796,924
70,948,920 187,809,276
3,943^66 323344
9,633,981
19,417,428 1,246.953 5,590,405
49,157,269 177,921,837
4,288,414 204.062
6,812,250 297,787,256 264.638,618
LIABILITIES
Bills payable Due to financial institutions Deposits and other ac4»)unts Subordinated sukuk Deferred tax liabilities Other liabilities
14 15 16 17 18 19
2,967358 17300,405
234,808,094 7,120,000 206,207
11,786,868
2,972,307 9,813,903
209,952,073 7.120,000 750,167
11,867,534 274,188,932 242,475,984
NET ASSETS • ^^rn^ii 22.162,634
REPRESENTED BY
Share capital Reserves Surplus on revaluation of investments Unappropriated profit
20
11,652,288 2395,859 201,984
9348,193
11,652,288 1,896,073 1,265,224 7349,049
Share capital Reserves Surplus on revaluation of investments Unappropriated profit
23^98324 22.162.634
CONTINGENCIES AND COMMITMENTS 21
The annexed notes 1 to 38 form an integral part of this condensed interim financial information.
Director
Dubai Islamic Bank Pakistan Limited Condensed Interim Profit and Loss Account (Un-Audited) For the quarter and nine-months period ended September 30, 2020
Qnartcr Nine months Quarter Nmc months Note ended period ended raided period etided
September 30, September 30, September 30, September 30, 2020 2020 2019 2019
Rupees In '000 Profit / return ramed 22 5,686303 20,650,582 7,039.886 18,721316 Profit / r^um expaised 23 a837,103) (11,635,170) (4,546,123) (11307,580) Net Profit/return 2,849,200 9,015,412 2,493,763 7,413,736 OTHER INCOME
Fee iuid commission income 24 401,177 1,128,618 389,840 1,241.351 Dividotd income - - -Foreign exciiange income 184,006 546,665 182,102 573,666 Gain on securities 25 - 982 322.456 322,727 Otiier income 26 161 809 117 1.097 Total other Income 585344 1,677,074 894,515 2,138,841 Total income 3,434344 10,692,486 3388,278 9,552,577 OTHER EXPENSES
Operating expenses 27 (1,778,650) (5.444,860) (1,696,187) (4,883.324) Workers Welfare Fund (22313) (82,057) (28,305) (84,928) Other charges 28 (270) (312) (85,174) (88.981) Total other expenses (1,801033) (5,527,229) (1,809,666) (5,057,233) Profit before provisioas 1,633311 5,165,257 1,578,612 4,495,344 Provisions and write offe - net 29 (462,175) (1,068,254) (179,479) (503388) Extra ordinary / unusual items - - - -
PROFIT BEFORE TAXATION 1,171,136 4,097,003 1399,133 3,991,956 Taxation 30 (455,720) (1398,073) (562,924) (1,690,992)
PROFIT AFTER TAXATION 715.416 2.498.930 836.209 2.300.964
Rupees Bask & diluted earnings per share 31 0.61 2.14 0.71 1.97
The annexed notes I to 38 form an integral part of this condensed interim financial information.
•'1
PreaWegr^EO Oief Financial Officer Dli Director
Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Comprehensive Itujome (Un-Audited) For the quarter md mne-months period ended September 30, 2020
Quarter eaded
September 30, 2020
Profit after taxation for the period
Other comprehencive income
Items that may be rechissified to profit and loss account in snbsequeot periods:
Movement in surplus / (deficit) on revaluation of investments - n<a of tax
715,416
Quarter aided
September 30, 2020 2019 — Rupees in '000
Nine months period ended September 30,
2,49S,930
(217,966) (1,063,240)
836,209
123346
Nine months period ended September 30,
2019
2,300.964
535.560 Totel comprefaenive income 497.4iW 1,435,690 959.555 2.836.524
The annexed notes I to 38 fomi an integral part of this condensed interim financial information.
Dubai I s l ^ i c Bank Pakistan Limited
Condensed Interim Statement of Changs in Equity (Un-Audited) For Ihe nine-moMks period ended September 30, 2020 _____
Share capital Statutory reserve
surplBson revaleation of investments
Unappropriated profit Toul
- RHIWM in *AnA *• nll|ICC9 111 vwr
Balance as at Janaary 01,2019 (1.652,288 1.226.954 (820,667) 4,«) 1.599 16,750.174
Total comprehCBsivc lacooie for the nine moatbs period ceded September 30,2019
Pt<M aHia tKcation - - - 2.300.964 2,300.964 Other comprehensive income - net of tax 535.560 _ 535.560
- - 535,560 2.300.964 2,836.524 TransStr to strtimwy reserve - 460,193 - (460.193) -
Balance a* at Scptenber 30,2019 11.652.288 1,687,147 (285,107) 6,532,370 19.586,698 Total conprehensive iBCone for the quarter
ceded December 31,2019
Profit alter taxation - - • 1,044,633 1,044,633 Other conprehensive income / (loss) - net of tax 1,550.331 (19,028) 1.531.303
- - 1,550,331 1.025,605 2,575,936 Transfla'to statutwy reserve - 208.926 - (208,926) -
Babince at at December 31,2019 1MS2,288 1,896,073 1,»5,324 7.349,049 22,162,634 Total comprehensive incoiae for the nine months
period ended September 30,2020
Profit after taxation - - - 2,498,930 2<498,930 Other comprdiensive income / floss) - net of tax (l,063Jt«) (1J>63,240)
- - (1,063,240) 2,498,930 1,435490 Transfer to sututory reserve - 499,786 - (499,786) -
Baiaacc as at September 30,2020 2J95.859 201.984 —mm. The annexed notes I lo 38 form an integral part of this condensed interim financial information.
Dubai Islamic Bank Pakisto Limited Condensed Interim Cash Flow Statement (Un-Audited) For Ihe ntne-monlhs period ended September 30, 2020
Nine months Nine months period ended period OKled
Note September 30, SqjtemberJO, 2020 2019 — Rupees In 'OOO —
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax«ion 4,097,003 3.991.956
Adjusfmeals for: Depreciation 27 235,499 240.443 Depreciation on right-of-use assets 27 594,4«3 490375 Amorttjation 27 38,741 44.832 Gain on securities 25 (982) (322,727) Oain on sde of fixed assets 26 (809) (1.097) Provisions and write of& • net 29 t,0«8,254 503.388 Finance cost on Ijarah (lease) liabilities 23 265,631 252,383
2J00.797 1.207.597 637,800 5.199.553
Decrease/(Increase) in operatiag assets Duefiom flnancial institutions Islamic financing and retued asseS Others assets
5490,405 (10,944,25^ (2,000,171)
300,000 (12,654.806) (1,965.291)
(7354,024) (14320.097) (Decrease) / increase ia operating IhibiHties Bills pajiable Due to financial institutions Deposits and other accounts other liabilities
(4,949) 7,486,400
24,856,021 (228*56)
(610,242) (3,940.909) 20,893,963
248.700 32,109,416 314)53,192
16,591,512 7,470,968
Income was paid Net cub generated tto» operating activities
(1,899356) 29,153,836
(1,605,123) 5,865,845
CASH FLOW FROM INVESTING ACTIVITIES
Net invesbnents in available for sale securities Net investments in held to maturity securities Investments in fixed assets Proceeds from sale of fixed assets Investments in intangible assets
(27,437,859) 4,000,000 (323,596)
M18 (158,023)
(1,987,242) (161,886) 26.489 (86.308)
Net cash flow used in ioveatiag activities (23,917,6«>) (2,208,947) CASH FLOW FROM FINANCING ACTIVITIES Payment oflJarA (lease) liabilities against ti^t-of-use assets (772,290) (698,750)
Increase in cash aad cash equivalents 4,463,88« 2,958,148 Cash and ca^ equivalents at beginning of the period Cash and cash equivalents at end of the period 32
20,664381 18.988,985 ^'.^^7,133
The annexed notes 1 to 38 fbrm on integral pan of this condensed interim financial infbimation.
Dubai Islamic Bank Pakistan LimitedNotes to and forming part of the Condensed Interim Financial Information (Un-Audited)For the nine-months period ended September 30, 2020
1. STATUS AND NATURE OF BUSINESS
1.1
1.2
1.3
1.4
2. BASIS OF PRESENTATION
2.1
3. STATEMENT OF COMPLIANCE
3.1
-
-
-
-
International Accounting Standards (IAS) 34, Interim Financial Reporting, issued by the International Accounting
Standards Board (IASB) as notified under the Companies Act, 2017;
Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as are
notified under the Companies Act, 2017;
Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and
Directives issued by the SBP and the SECP.
Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by
the SBP and the SECP differ with the requirements of the IAS 34, requirements of the Banking Companies Ordinance, 1962,
the Companies Act, 2017 and the said directives shall prevail.
This condensed interim financial information has been prepared in accordance with approved accounting and reporting
standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in
Pakistan for interim financial reporting comprise of:
Dubai Islamic Bank Pakistan Limited (the Bank) was incorporated in Pakistan as an unlisted public limited company on May
27, 2005 under the Companies Act, 2017 (previously Companies Ordinance, 1984) to carry out the business of an Islamic
Commercial Bank in accordance with the principles of Islamic Shari'a.
The State Bank of Pakistan (the SBP) granted a “Scheduled Islamic Commercial Bank” license to the Bank on November 26,
2005 and subsequently the Bank received the Certificate of Commencement of Business from the Securities and Exchange
Commission of Pakistan (the SECP) on January 26, 2006. The Bank commenced its operations as a scheduled Islamic
Commercial Bank with effect from March 28, 2006 on receiving certificate of commencement of business from the SBP. The
Bank is principally engaged in corporate, commercial, consumer, investing and retail banking activities.
The Bank is operating through 235 branches (including 25 sub-branches) as at September 30, 2020 (December 31, 2019: 235
branches). The registered office of the Bank is situated at Hassan Chambers, DC-7, Block-7 Kehkashan, Clifton, Karachi. The
Bank is a wholly owned subsidiary of Dubai Islamic Bank PJSC, UAE (the Holding Company).
The Bank provides Islamic financing and makes investments mainly through Murabaha, Musharaka, Running Musharaka,
Shirkatulmilk, Istisna cum Wakala, Wakala Istithmar and export refinance under Islamic export refinance scheme of SBP and
other Islamic modes as briefly explained in the annual financial statements for the year ended December 31, 2019. The
transactions of purchases, sales and leases executed under these arrangements are not reflected in this condensed interim
financial information as such but are restricted to the amount of facility actually utilized and the appropriate portion of rental /
profit thereon. The income on such Islamic financing and related assets is recognised in accordance with the principles of
Shari'a. However, income if any, received which does not comply with the principles of Shari'a is recognised as charity payable
if so directed by the Shari'a Board / Resident Shari'a Board Member.
VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company Limited) on June 30, 2020 has reaffirmed the
Bank's medium to long-term rating at 'AA' (Double A) and the short term rating at 'A-1+' (A-One Plus) with stable outlook.
3.2 Significant accounting policies
3.2.1
3.2.2
4. BASIS OF MEASUREMENT
4.1 Accounting convention
4.2 Functional and presentation currency
4.3 Critical accounting estimates and judgments
5. FINANCIAL RISK MANAGEMENT
This condensed interim financial information have been presented in Pakistani Rupees, which is the Bank's functional and
presentation currency.
The basis for accounting estimates adopted in the preparation of this condensed interim financial information is the same as that
applied in the preparation of the annual financial statements for the year ended December 31, 2019.
The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the financial
statements for the year ended December 31, 2019. These risk management policies continue to remain robust and the Bank is
fully aware of the risks associated with COVID-19 and on an ongoing basis conducts assessment of its portfolio and operations
to ensure the risks are minimized.
The State Bank of Pakistan (SBP) has responded to the crisis by cutting the policy rate by 625 basis points to 7 percent and by
introducing regulatory measures to maintain banking system soundness and to sustain economic activity. These include (i)
reducing the capital conservation buffer by 100 basis points to 1.5 percent; (ii) increasing the regulatory limit on extension of
credit to SMEs from Rs 125 million to Rs 180 million; (iii) relaxing the debt burden ratio for consumer financing from 50
percent to 60 percent; (iv) allowing banks to defer clients' payment of principal and profit on financing obligations by one year;
(v) relaxing regulatory criteria for restructured/rescheduled financing for borrowers who require relief beyond the extension of
principal repayment for one year; (vi) relaxing credit requirements for exporters and importers; and (vii) Refinance schemes to
support employment to prevent layoff of workers and health sector to combat COVID-19 Pandemic.
Amendments to approved accounting standards that are effective in the current period
There are certain other new and amendment to standards that became effective during the period (enumerated in note 2.3 to the
annual financial statements of the Bank for the year 2019). However, such standards did not have any significant effect on this
condensed interim financial information.
Standards, interpretations and amendments to approved accounting standards that are not yet effective
There are certain other standards, amendments and interpretations with respect to the approved accounting standards that are not
yet effective and are not expected to have any material impact on the Bank's condensed interim financial information in the
period of their initial application. With regards to IFRS 9 implementation, the SBP vide its BPRD Circular No.04 of 2019 dated
October 23, 2019 directed the banks in Pakistan to implement IFRS 9 with effect from January 01, 2021.
This condensed interim financial information have been prepared under the historical cost convention, except that certain
investments, foreign currency balances and commitments in respect of certain foreign exchange contracts have been marked to
market and carried at fair value.
The significant accounting policies adopted in the preparation of this condensed interim financial information are consistent
with those applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2019.
September 30, December 31,
2020 2019
(Un-audited) (Audited)
Cash and balance treasury Banks Note
6 CASH AND BALANCES WITH TREASURY BANKS
In hand
Cash in HandLCY - local currency 3,214,324 2,614,985
Cash in HandFCY - foreign currencies 1,999,799 875,744
5,214,123 3,490,729
0000335001ABN AMRO SETTLEMENT ACCOUNTPKRWith State Bank of Pakistan in
SBP BalanceLCY - local currency current accounts 6.1 11,818,013 11,957,210
SBP Clearing Account - FCY - foreign currency current accounts 19,013 6,824
- foreign currency deposit accounts
SBP Current Account 5% - FCY - Cash reserve account 6.2 1,731,670 1,502,099
SBP Deposit Account 6% - FCY - Special cash reserve account 6.2 2,077,888 1,802,411
SBP Current Account 5% - FCY 3,809,558 3,304,510
With National Bank of Pakistan in
NBP LCY - local currency current accounts 470,738 658,155
21,331,445 19,417,428
NBP LCY6.1
6.2
September 30, December 31,
2020 2019
(Un-audited) (Audited)
Balances with Other Banks Note
7 BALANCES WITH OTHER BANKS
In Pakistan
Current Account - Inside Pakistan - in local currency current accounts 502,001 773,233
Current Account - Inside Pakistan - FCY - in foreign currency current account 5,749 448
Deposit Account - Inside Pakistan - in local currency deposit account 10 10
507,760 773,691
NBP FCYOutside Pakistan
Current Account - Outside Pakistan - in foreign currencies current accounts 7.1 3,289,164 473,262
3,796,924 1,246,953
7.1
September 30, December 31,
8 DUE FROM FINANCIAL INSTITUTIONS 2020 2019
Comodity Murabaha (Un-audited) (Audited)
Musharaka PlacementsBai Muajjal receivable from Scheduled Banks - secured - 3,590,405
Musharaka - unsecured - 2,000,000
Bai Muajjal receivable - 5,590,405
------ (Rupees in '000) ------
This includes an amount of Rs. 56.501 million (December 31, 2019: Rs. 36.608 million) deposited with the holding company.
------ (Rupees in '000) ------
------ (Rupees in '000) ------
The local currency current account is maintained with the State Bank of Pakistan (SBP) as per the requirements of Section 22 of the
Banking Companies Ordinance, 1962. This section requires banking companies to maintain a local currency cash reserve in the
current account opened with the SBP at a sum not less than 5% of its demand and time liabilities in Pakistan.
As per BSD Circular No. 15 dated June 21, 2008, cash reserve of 5% and special cash reserve of 6% are required to be maintained
with SBP on deposits held under the New Foreign Currency Accounts Scheme (FE-25 deposits). These accounts are non-remunerative
in nature.
9 INVESTMENTS
9.1 Investments by types:
Available-for-sale securities
Federal Government securities 1,000,000 - 100 1,000,100 9,898,236 - (98,982) 9,799,254
Non-Government debt securities 46,632,631 (89,316) 884,651 47,427,966 22,639,475 (77,881) 2,208,716 24,770,310
Foreign securities 23,094,861 - (574,007) 22,520,854 10,750,940 - (163,235) 10,587,705
70,727,492 (89,316) 310,744 70,948,920 43,288,651 (77,881) 1,946,499 45,157,269
Held-to-maturity securities
Federal Government securities - - - - 4,000,000 - - 4,000,000
Total investments 70,727,492 (89,316) 310,744 70,948,920 47,288,651 (77,881) 1,946,499 49,157,269
September 30, December 31,
9.2 Provision for diminution in value of investments 2020 2019
Note (Un-audited) (Audited)
Opening balance 77,881 70,495
Provision for diminution in the value of investments Charge for the period / year 11,435 7,386
Closing balance 9.2.1 89,316 77,881
9.2.1
9.2.2 Particulars of provision against debt securities
Category of classification
*NPI Provision *NPI Provision
Domestic
Other Assets Especially Mentioned - - - -
Substandard - - - -
Doubtful - - - -
Loss 89,316 89,316 89,316 77,881
89,316 89,316 89,316 77,881
Overseas - - - -
Total 89,316 89,316 89,316 77,881
* NPI stands for non-performing investments.
-------------------- (Rupees in '000) --------------------
This represent sukuk of Quetta Textile Mills Limited amounting to Rs. 89.32 million (December 31, 2019: Rs. 89.32 million) which have been placed under non-
performing status. The forced sale value (FSV) benefit of the collateral held in respect of this sukuk is Rs. Nil (December 31, 2019: Rs. 11.44 million). Therefore,
provision for diminution has been made in respect of the same. Profit accrued on this sukuk has been suspended. The additional profit arising from availing the FSV
benefit - net of tax as at September 30, 2020 amounting to Rs. Nil (December 31, 2019: Rs. 6.98 million) is not available for distribution as either cash or stock
dividend.
September 30, 2020 (Un-audited) December 31, 2019 (Audited)
------ (Rupees in '000) ------
September 30, 2020 (Un-audited) December 31, 2019 (Audited)
Cost /
amortised
cost
Provision for
diminution
Surplus /
(deficit)
Carrying
value
Cost /
amortised
cost
Provision for
diminution
(Deficit) /
surplus Carrying value
----------------------------------------------------------- (Rupees in '000) -----------------------------------------------------------
10 ISLAMIC FINANCING AND RELATED ASSETS - NET
September 30, December 31, September 30, December 31, September 30, December 31,
Note 2020 2019 2020 2019 2020 2019
(Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited)
Murabaha 10.1 20,406,439 24,946,574 1,612,868 523,325 22,019,307 25,469,899
Musawamah 10.2 2,496,155 2,340,333 125,198 87,295 2,621,353 2,427,628
Tijarah cum wakala 10.3 7,477,924 4,730,303 - - 7,477,924 4,730,303
Istisna cum Wakala 10.4 13,098,156 11,462,103 738,214 546,980 13,836,370 12,009,083
Salam 10.5 294,472 1,438,986 - - 294,472 1,438,986
Islamic Export Refinance Scheme - SBP 10.6 9,237,834 7,057,242 - - 9,237,834 7,057,242
Other Islamic Refinance Schemes - SBP 6,213,094 938,963 - - 6,213,094 938,963
Wakala Istithmar 20,169,298 19,593,584 316,816 167,765 20,486,114 19,761,349
Running Musharaka financing 27,021,025 27,179,165 - - 27,021,025 27,179,165
Shirkatulmilk - Housing 10.7 8,500,554 9,254,227 425,506 378,671 8,926,060 9,632,898
Shirkatulmilk - Autos 10.8 16,992,454 16,979,101 355,717 316,301 17,348,171 17,295,402
Shirkatulmilk - Fleet financing 10.9 6,474,541 7,649,095 171,672 182,486 6,646,213 7,831,581
Shirkatulmilk - Others 10.10 15,018,969 14,958,776 2,079,710 2,207,427 17,098,679 17,166,203
Diminishing Musharaka - Others 30,383,384 25,771,325 30,038 76,930 30,413,422 25,848,255
Staff financing 2,039,462 1,953,559 58,258 52,984 2,097,720 2,006,543
Islamic financing and related assets (gross) 185,823,761 176,253,336 5,913,997 4,540,164 191,737,758 180,793,500
Provision against Islamic financing and
related assets
Specific 10.12 - - (3,029,624) (2,738,605) (3,029,624) (2,738,605)
General (898,858) (133,058) - - (898,858) (133,058)
(898,858) (133,058) (3,029,624) (2,738,605) (3,928,482) (2,871,663)
Islamic financing and related assets
- net of provision 184,924,903 176,120,278 2,884,373 1,801,559 187,809,276 177,921,837
September 30, December 31,
2020 2019
(Un-audited) (Audited)
10.1 Murabaha
Financing 6,177,113 8,678,014
Inventory 15,274,337 16,082,423
Advance 567,857 709,462
22,019,307 25,469,899
10.2 Musawamah
Financing 2,457,394 2,374,564
Advance 163,959 53,064
2,621,353 2,427,628
10.3 Tijarah cum wakala
Financing 7,325,759 3,780,540
Inventory 152,165 949,763
7,477,924 4,730,303
10.4 Istisna cum Wakala
Financing 9,946,818 8,144,766
Advance 3,889,552 3,864,317
13,836,370 12,009,083
Performing Non-Performing Total
----------------------------------------------- (Rupees in '000) -----------------------------------------------
--- (Rupees in '000) ---
September 30, December 31,
2020 2019
(Un-audited) (Audited)
10.5 Salam
Financing 289,472 288,986
Advance 5,000 1,150,000
294,472 1,438,986
10.6 Islamic Export Refinance Scheme - SBP
Istisna - Advance 293,700 363,000
Istisna - Financing 213,000 -
Murabaha - Advance 201,800 -
Murabaha - Financing 30,500 -
Running Musharaka - Financing 4,502,900 3,429,900
Wakala Istithmar - Financing 3,995,934 3,264,342
9,237,834 7,057,242
10.7 Shirkatulmilk - Housing
Financing 8,852,260 9,578,338
Advance 73,800 54,560
8,926,060 9,632,898
10.8 Shirkatulmilk - Autos
Financing 15,697,579 16,943,616
Advance 1,650,592 351,786
17,348,171 17,295,402
10.9 Shirkatulmilk - Fleet financing
Financing 6,496,803 7,628,398
Advance 149,410 203,183
6,646,213 7,831,581
10.10 Shirkatulmilk - Others
Financing 17,098,679 17,166,203
10.11 Particulars of Islamic financing and related assets (gross)
In local currency 191,474,535 179,838,524
In foreign currencies 713,223 954,976
192,187,758 180,793,500
10.12
Category of ClassificationNon-
Performing
Provision
heldNon-Performing
Provision
held
Domestic
Other Assets Especially Mentioned 16,191 - 53,990 -
Substandard 143,997 13,967 467,090 57,317
Doubtful 367,040 21,021 856,995 80,302
Loss 5,386,769 2,994,636 3,162,089 2,600,986
5,913,997 3,029,624 4,540,164 2,738,605
September 30, 2020
(Un-audited)
December 31, 2019
(Audited)
----------------------- (Rupees in '000) -----------------------
Islamic financing and related assets include Rs. 5,913.997 million (December 31, 2019: Rs. 4,540.164 million) which have been placed under non-
performing status as detailed below:
--- (Rupees in '000) ---
10.12.1 Particulars of provision against Islamic financing and related assets:
Specific General Total Specific General Total
Opening balance 2,738,605 133,058 2,871,663 2,056,910 99,733 2,156,643
Charge for the period / year 392,208 765,800 1,158,008 766,561 33,325 799,886
Reversals during the period / year (101,189) - (101,189) (84,866) - (84,866)
291,019 765,800 1,056,819 681,695 33,325 715,020
Amounts written-off - - - - - -
Closing balance 3,029,624 898,858 3,928,482 2,738,605 133,058 2,871,663
10.12.1.1
10.12.1.2
September 30, December 31,
2020 2019
Note (Un-audited) (Audited)
11 FIXED ASSETS
Capital work-in-progress 11.1 49,176 78,326
Property and equipment 1,360,474 1,244,237
Right-of-use assets 2,533,716 2,965,851
3,943,366 4,288,414
11.1 Capital work-in-progress
Civil works 3,221 38,485
Equipment 45,955 39,841
49,176 78,326
September 30, September 30,
2020 2019
(Un-audited) (Un-audited)
11.2 Additions to fixed assets
Property and Equipment (Including transfer from CWIP)
Furniture and fixtures 24,739 2,379
Electrical, office and computer equipment 240,394 117,327
Vehicles - 44,107
Leasehold improvements 87,613 13,839
352,746 177,652
--- (Rupees in '000) ---
December 31, 2019 (Audited) September 30, 2020 (Un-audited)
--- (Rupees in '000) ---
General provisioning is held against consumer finance portfolio in accordance with the requirements of the Prudential Regulations
issued by the State Bank of Pakistan except for Shirkatulmilk financing - Autos. The SBP vide its letter no BPRD / BLRD - 03 /
2009 / 6877 dated October 15, 2009 has allowed relaxation to the Bank from recognising general provision against Shirkatulmilk
financing - Autos on the condition that the facility will be categorised as "Loss" on the 180th day from the date of default. In this
regard, the SBP vide its letter no BPRD / BRD - 04 / DIB / 2013 / 1644 dated February 12, 2013 has decided that the exemption
from general reserve requirement shall only be valid till classified Auto Financing portfolio of the Bank remains upto 5% i.e. if the
classified Auto Financing portfolio increases beyond the 5% threshold, the exemption shall stand withdrawn from that point of
time.
---------------------------------------- (Rupees in '000) ----------------------------------------
As allowed by the SBP, the Bank has availed benefit of Forced Sale Value (FSV) amounting to Rs.2,572.379 million (December
31, 2019: Rs. 961.903 million) in determining the provisioning against non performing Islamic financings as at September 30,
2020. The additional profit arising from availing the FSV benefit - net of tax as at September 30, 2020 which is not available for
distribution as either cash or stock dividend to shareholders amounted to Rs. 1,672.046 million (December 31, 2019: Rs. 625.237
million).
In addition, the Bank has also maintained a general provision of Rs.764 million (December 31, 2019: Nil) against financing made
on prudent basis, in view of the prevailing economic conditions. This general provision is in addition to the existing requirements
of Prudential Regulations.
September 30, December 31,
2020 2019
(Un-audited) (Audited)
Note
12 INTANGIBLE ASSETS
Capital work-in-progress 12.1 94,202 54,767
Computer software 229,142 149,295
323,344 204,062
12.1 Capital work-in-progress
Advance to suppliers 94,202 54,767
September 30, September 30,
2020 2019
(Un-audited) (Un-audited)
12.2 Additions to intangible assets
Directly purchased (including transfer from CWIP) 118,588 80,526
September 30, December 31,
2020 2019
(Un-audited) (Audited)
13 OTHER ASSETS
Profit / return accrued in local currency - net 5,554,556 3,993,851
Profit / return accrued in foreign currencies - net 165,993 74,051
Advances, deposits and other prepayments #REF! 990,005 635,908
Mark to market gain on forward foreign exchange contracts 14,706 87,102
Current taxation (payments less provisions) 244,880 -
Acceptances 2,295,605 1,718,925
Others 34.4 369,982 304,159
9,635,727 6,813,996
Less: Provision held against other assets 13.1 (1,746) (1,746)
9,633,981 6,812,250
13.1 Provision held against other assets
Others - Trackers 1,746 1,746
14 BILLS PAYABLE
In Pakistan 2,959,084 2,963,411
Outside Pakistan 8,274 8,896
2,967,358 2,972,307
15 DUE TO FINANCIAL INSTITUTIONS
Secured
Musharaka from the State Bank of Pakistan
under Islamic Export Refinance Scheme 7,372,643 6,897,280
Investment from the State Bank of Pakistan
- under Islamic Long Term Finance Facility 1,405,903 916,623
- under Islamic Finance Facility For Renewable Energy 148,948 -
- under Payment of Wages and Salaries Refinance Scheme 2,872,809 -
Unsecured
Musharka borrowings 1,000,000 1,500,000
Wakala borrowings 4,500,000 500,000
Overdrawn nostro 102 -
17,300,405 9,813,903
15.1 Particulars of due to financial institutions with respect to currencies
In local currency 17,300,303 9,813,903
In foreign currency 102 -
17,300,405 9,813,903
--- (Rupees in '000) ---
--- (Rupees in '000) ---
--- (Rupees in '000) ---
16 DEPOSITS AND OTHER ACCOUNTS
In local currencyIn foreign
currenciesTotal In local currency
In foreign
currenciesTotal
Customers
Current deposits 46,930,000 14,630,636 61,560,636 40,074,829 11,994,495 52,069,324
Savings deposits 77,255,164 8,013,215 85,268,379 64,831,358 6,610,954 71,442,312
Term deposits 33,629,454 11,519,869 45,149,323 46,860,066 11,225,086 58,085,152
Others 9,433,642 - 9,433,642 7,203,371 - 7,203,371
167,248,260 34,163,720 201,411,980 158,969,624 29,830,535 188,800,159
Financial institutions
Current deposits 483,604 18,262 501,866 479,337 14,087 493,424
Savings deposits 32,046,450 - 32,046,450 16,134,765 - 16,134,765
Term deposits 847,798 - 847,798 4,523,725 - 4,523,725
33,377,852 18,262 33,396,114 21,137,827 14,087 21,151,914
200,626,112 34,181,982 234,808,094 180,107,451 29,844,622 209,952,073
Note September 30, December 31,
2020 2019
(Un-audited) (Audited)
17 SUBORDINATED SUKUK
Additional Tier I Sukuk 17.1 3,120,000 3,120,000
Tier II Sukuk 17.2 4,000,000 4,000,000
7,120,000 7,120,000
17.1
17.2
Lock-in-clauseProfit and/or redemption amount can be held back in respect of the Tier II Sukuk, if such payment will result
in a shortfall in the Issuer’s minimum capital or capital adequacy ratio requirement.
Expected periodic profit amount (Mudaraba
profit amount)
The Mudaraba Profit is in accordance with the agreed profit sharing ratios / weightages assigned by the bank
from time-to-time coinciding with the relevant profit distribution frequency for the relevant profit distribution
period. Last announced profit rate on the sukuk is 7.31% per annum.
Call option The Bank may call Tier II Sukuk with prior approval of SBP on or after five years from the date of issue.
Loss absorbency
The Tier II Sukuk, at the option of the SBP, will be fully and permanently converted into common shares upon
the occurrence of a point of non-viability trigger event as determined by SBP or for any other reason as may be
directed by SBP.
Expected periodic profit amount (Mudaraba
profit amount)
The Mudaraba Profit is computed under General Pool on the basis of profit sharing ratio and monthly
weightages announced by the Bank under the SBP guidelines of pool management. Last announced profit rate
on the Sukuk is 9.69% per annum.
Call optionThe Bank may call Additional Tier I Sukuk with prior approval of SBP on or after five years from the date of
issue.
Tenor
Profit payment frequency Monthly in arrears
Redemption Perpetual
Perpetual
Loss absorbency
The Additional Tier I Sukuk, at the option of the SBP, will be fully and permanently converted into common
shares upon the occurrence of a point of non-viability trigger event as determined by SBP or for any other
reason as may be directed by SBP.
Lock-in-clauseProfit and/or redemption amount can be held back in respect of the Additional Tier I Sukuk, if such payment
will result in a shortfall in the Issuer’s minimum capital or capital adequacy ratio requirement.
Credit ratingAA- (Double AA - Minus) by JCR-VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating
Company Limited).
In July 2017, the Bank issued regulatory Shariah compliant unsecured, subordinated privately placed Tier II Sukuk based on Mudaraba of Rs. 4,000 million
as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of sukuk is as follows:
Tenor 10 years form the issue date
Profit payment frequency Semi-annually in arrears
Redemption On the tenth anniversary from the issue date of sukuk
September 30, 2020 (Un-audited) December 31, 2019 (Audited)
------------------------------------------------------------ (Rupees in '000) ------------------------------------------------------------
Credit ratingA+ (Single A - Plus) by JCR-VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Company
Limited).
In December 2018, the Bank issued regulatory Shari'a compliant perpetual, unsecured, subordinated privately placed Additional Tier I Sukuk based on
Mudaraba of Rs. 3,120 million as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of sukuk is as follows:
---- (Rupees in '000) ----
18 DEFERRED TAX LIABILITIES At Jan 1, 2020
Recognised in
P&L
Recognised in
OCI
At September
30, 2020
Deferred Tax Asset
Taxable temporary differences on:
Accelerated tax depreciation and amortisation 17,028 (7,246) - 9,782
Provision against non-performing Islamic
financing and related assets 75,977 35,801 - 111,778
Surplus on revaluation of investments 681,275 - (572,515) 108,760
774,280 28,555 (572,515) 230,320
Deductible temporary differences on:
Provision against other assets (611) - - (611)
Deficit on defined benefit plan (23,502) - - (23,502)
(24,113) - - (24,113)
750,167 28,555 (572,515) 206,207
At Jan 1, 2019Recognised in
P&L
Recognised in
OCIAt Dec 31, 2019
Taxable temporary differences on:
Accelerated tax depreciation and amortisation 36,007 (18,979) - 17,028
Provision against non-performing Islamic
financing and related assets (34,893) 110,870 - 75,977
Surplus / (deficit) on revaluation of investments (441,897) - 1,123,172 681,275
(440,783) 91,891 1,123,172 774,280
Deductible temporary differences on:
Provision against other assets (6,273) 5,662 - (611)
Deficit on defined benefit plan (13,257) - (10,245) (23,502)
(19,530) 5,662 (10,245) (24,113)
(460,313) 97,553 1,112,927 750,167
September 30, December 31,
2020 2019
(Un-audited) (Audited)
19 OTHER LIABILITIES
Profit / return payable in local currency 1,346,684 2,113,271
Profit / return payable in foreign currencies 24,514 51,664
Deferred profit murabaha / musawamah income 1,701,077 1,972,074
Accrued expenses 745,881 723,721
Advance from financing customers 955,303 958,530
Unrealized profit on forward foreign exchange contractsMark to market loss on forward foreign exchange contracts 36,915 540,182
Acceptances 2,295,605 1,718,925
Current taxation (provisions less payments) - 84,958
Security deposits against Islamic financing and related assets 260,065 38,872
Ijarah (lease) liabilities 2,360,289 2,704,620
Payable to dealers, contractors, etc. 606,648 175,114
Workers Welfare Fund payable 373,030 290,973
Payable to Employees Old Age Benefit Institution (EOBI) 108,704 92,509
Others 972,153 402,121
11,786,868 11,867,534
20 SURPLUS ON REVALUATION OF INVESTMENTS
Surplus on revaluation of Available-for-sale securities - net
Sukuk certificates 310,744 1,946,499
Less: Related deferred tax liability (108,760) (681,275)
201,984 1,265,224
September 30, 2020 (Un-audited)
--- (Rupees in '000) ---
------------------- (Rupees in '000) -------------------
December 31, 2019 (Audited)
------------------- (Rupees in '000) -------------------
21 CONTINGENCIES AND COMMITMENTS September 30, December 31,
2020 2019
Note (Un-audited) (Audited)
Guarantees 21.1 16,359,287 14,823,737
Commitments 21.2 31,357,775 45,469,480
47,717,062 60,293,217
21.1 Guarantees
Financial guarantees 26,647 24,534
Performance guarantees 5,198,673 4,080,568
Other guarantees 11,133,967 10,718,635
16,359,287 14,823,737
21.2 Commitments
Documentary credits and short-term
trade-related transactions
Import letters of credit 24,289,565 24,588,918
Commitments in respect of:
- Forward foreign exchange contracts - net 21.2.1 942,820 14,540,146
- Islamic financing and related assets 5,922,000 5,930,387
Commitments for acquisition of:
- Fixed assets 99,818 283,704
- Intangible assets 103,572 126,325
31,357,775 45,469,480
21.2.1 Commitments in respect of forward foreign exchange
contracts - net
Purchase 8,523,699 29,644,778
Sale 7,580,879 15,104,632
942,820 14,540,146
21.3 Tax contingencies
--- (Rupees in '000) ---
The income tax authorities have amended assessment orders of the Bank for prior years including the tax year 2019. The
disallowances were mainly due to reversal of provision against financing, provision against investments and Workers
Welfare Fund. The Bank has filed appeals before the various appellate forums against these amendments. For the tax year
2015, tax authorities have issued a notice to amend assessment against the adjustment of minimum tax paid in prior years
amounting to Rs. 211.48 million. The management of the Bank approached Sindh High Court and subsequently the
Honourable Supreme Court of Pakistan against the order of the Sindh High Court. The Honourable Supreme Court of
Pakistan has granted leave to appeal. The appeal is expected to be fixed soon. The management of the Bank is confident that
the appeals will be decided in favour of the Bank in respect of the aforementioned matters.
Nine months Nine months
period ended period ended
September 30, September 30,
2020 2019
22 PROFIT / RETURN EARNED
Profit on CustomersOn Islamic financing and related assets to customers 16,216,397 14,918,883
Profit on AFS SecuritiesOn investments in available-for-sale securities 3,684,614 2,925,359
Profit on HTM SecuritiesOn investments in held-to-maturity securities 103,939 156,769
On deposits / placements with financial institutions 645,632 720,305
20,650,582 18,721,316
23 PROFIT / RETURN EXPENSED
Profit paid on depositsDeposits and other accounts 10,084,458 9,153,738
Subordinated debt expenseSubordinated sukuk ` 658,538 661,503
Profit paid on Call BorrowingDue to financial institutions 361,492 552,424
Finance charge on Lease LiabilitiesFinance cost on Ijarah (lease) liabilities 265,631 252,383
Cost of foreign currency swapsCost of foreign currency swaps 265,051 687,532
11,635,170 11,307,580
24 FEE & COMMISSION INCOME
Consumer finance related feesConsumer finance related fees 400,401 480,744
Credit related feesCredit related fees 104,770 79,264
Investment banking feesInvestment banking fees 65,350 58,802
Branch banking customer feesBranch banking customer fees 60,724 79,502
Card related fees (debit and credit cards)Card related fees 145,358 159,023
Commission on tradeCommission on trade 168,541 154,958
Commission on guaranteesCommission on guarantees 53,179 46,670
Commission on cash managementCommission on cash management 29,335 37,466
Commission on remittances including home remittancesCommission on remittances including home remittances 16,088 12,246
Commission on bancassuranceCommission on bancassurance 9,197 48,634
Rebate Income - FIRebate income 74,548 81,659
OthersOthers 1,127 2,383
1,128,618 1,241,351
25 GAIN ON SECURITIES
Realised
Federal Government securities 982 271
Foreign securities - 322,456
982 322,727
26 OTHER INCOME
IN0604000Gain on sale of fixed assets - net 809 1,097
----- Rupees in '000 -----
(Un-audited)
Nine months Nine months
period ended period ended
September 30, September 30,
2020 2019
27 OPERATING EXPENSES
Total compensation expense 2,335,897 2,133,697
Property expense
Takaful chargesProperty expenseTakaful charges 952 1,108
Utilities cost 219,406 217,198
Security 170,738 118,541
Repair & maintenance (including janitorial charges) 93,113 67,823
Depreciation on lease hold itemsDepreciation 72,635 72,043
Depreciation Expense on Right-of-use assetsDepreciation on right-of-use assets 594,463 490,375
1,151,307 967,088
Information technology expenses
Software maintenanceSoftware maintenance 207,575 175,457
Hardware maintenaceHardware maintenance 82,087 60,063
Depreciation on hardwareDepreciation 71,295 72,819
Amortisation 38,741 44,832
Networking and connectivity charges 94,999 80,796
Outsourced services cost 22,474 19,896
Takaful charges 991 888
IT suppliesOthers 1,034 941
519,196 455,692
Other operating expenses
Directors' fee and allowances 7,318 5,329
Fees and allowances to Sharia'h BoardFees and allowances to Shari'a Board members 9,948 11,634
Legal and professional charges 40,447 21,757
Outsourced services cost 80,627 66,771
Travelling and conveyaneTravelling and conveyance 24,074 33,945
NIFT clearing charges 25,769 22,998
Depreciation on other fixed assetsDepreciation 91,569 95,581
Training and development 13,596 4,709
Postage and courier charges 25,883 24,257
Communications 147,293 114,681
Stationary and printing 81,658 62,746
Marketing, advertising and publicity 66,932 71,421
Auditors' remuneration 4,319 5,400
Brokerage, commission and bank charges 262,581 205,436
Tracker related charges 122,686 130,084
Cash transportation charges 77,914 73,752
Repair and maintenance 66,753 62,532
Subscription fees 13,097 14,361
insurance exp other opeTakaful charges 49,542 28,364
Deposit Premium Cost 76,243 90,202
Others-Others 150,211 180,887
1,438,460 1,326,847
5,444,860 4,883,324
----- Rupees in '000 -----
(Un-audited)
Nine months Nine months
period ended period ended
September 30, September 30,
2020 2019
Note
28 OTHER CHARGES
Penalties imposed by State Bank of Pakistan 312 88,981
29 PROVISIONS & WRITE OFFS - NET
Provision against Islamic financing
and related assets - net 10.12.1 1,056,819 496,002
Provision for diminution in the value of investments 9.2 11,435 7,386
1,068,254 503,388
30 TAXATION
Current 1,569,518 1,622,951
Prior years - 98,367
Deferred 28,555 (30,326)
1,598,073 1,690,992
31 BASIC AND DILUTED EARNINGS PER SHARE
Profit after taxation for the period 2,498,930 2,300,964
Weighted average number of ordinary shares 1,165,228,776 1,165,228,776
Earning per share - basic and diluted 2.14 1.97
September 30, September 30,
2020 2019
32 CASH AND CASH EQUIVALENTS
Cash and balance with treasury banks 6 21,331,445 16,173,659
Balance with other banks 7 3,796,924 5,773,474
Overdrawn nostro 15 (102) -
25,128,267 21,947,133
----- Rupees in '000 -----
----- Rupees in '000 -----
---- (Number) ----
---- (Rupees) ----
(Un-audited)
(Un-audited)
33 FAIR VALUE OF FINANCIAL INSTRUMENTS
The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised:
On-Balance sheet Financial InstrumentsHeld to
Maturity
Available for
Sale
Financing and
receivables
Other
financial
assets
Other
financial
liabilities
Total Level 1 Level 2 Level 3 Total
Financial assets - measured at fair value
Investments
Federal Government securities - 1,000,100 - - - 1,000,100 - 1,000,100 - 1,000,100
Non-Government debt securities - 47,427,966 - - - 47,427,966 44,052,966 3,375,000 - 47,427,966
Foreign securities - 22,520,854 - - - 22,520,854 22,520,854 - - 22,520,854
Other assets
Unrealized gain on foreign exchange contracts - - - 14,706 - 14,706 - 14,706 - 14,706
Financial assets - not measured at fair value
Cash and balances with treasury banks - - - 21,331,445 - 21,331,445
Balances with other banks - - - 3,796,924 - 3,796,924
Due from financial institution - - - - - -
Investments - - - - - -
Islamic financings and related assets - net - - 187,809,276 - - 187,809,276
Other asset - - - 8,678,163 - 8,678,163
- 70,948,920 187,809,276 33,821,238 - 292,579,434
Financial liabilities - measured at fair value
Other liabilities
Unrealized loss on foreign exchange contracts - - - - 36,915 36,915 - 36,915 - 36,915
Financial liabilities - not measured at fair value
Bills payable - - - - 2,967,358 2,967,358
Due to financial institutions - - - - 17,300,405 17,300,405
Deposits and other accounts - - - - 234,808,094 234,808,094
Subordinated sukuk 7,120,000 - - - - 7,120,000
Other liabilities - - - - 9,477,866 9,477,866
7,120,000 - - - 264,590,638 271,710,638
Off-balance sheet financial
instruments - measured at fair value
Forward foreign exchange contracts - net - - - 942,820 - 942,820 - 920,611 - 920,611
On-Balance sheet Financial InstrumentsHeld to
Maturity
Available for
Sale
Financing and
receivables
Other
financial
assets
Other financial
liabilitiesTotal Level 1 Level 2 Level 3 Total
Financial assets - measured at fair value
Investments
Federal Government securities - 9,799,254 - - - 9,799,254 - 9,799,254 - 9,799,254
Non-Government debt securities - 24,770,310 - - - 24,770,310 21,046,375 3,712,500 11,435 24,770,310
Foreign securities - 10,587,705 - - - 10,587,705 10,587,705 - - 10,587,705
Other assets
Unrealized gain on foreign exchange contracts - - - 87,102 - 87,102 - 87,102 - 87,102
Financial assets - not measured at fair value
Cash and balances with treasury banks - - - 19,417,428 - 19,417,428
Balances with other banks - - - 1,246,953 - 1,246,953
Due from financial institution - - - 5,590,405 - 5,590,405
Investments 4,000,000 - - - - 4,000,000
Islamic financings and related assets - net - - 177,921,837 - - 177,921,837
Other asset - - - 6,098,972 - 6,098,972
4,000,000 45,157,269 177,921,837 32,440,860 - 259,519,966
Financial liabilities - measured at fair value
Other liabilities
Unrealized loss on foreign exchange contracts - - - - 540,182 540,182 - 540,182 - 540,182
Financial liabilities - not measured at fair value
Bills payable - - - - 2,972,307 2,972,307
Due to financial institutions - - - - 9,813,903 9,813,903
Deposits and other accounts - - - - 209,952,073 209,952,073
Subordinated sukuk 7,120,000 - - - - 7,120,000
Other liabilities - - - - 8,838,504 8,838,504
7,120,000 - - - 232,116,969 239,236,969
Off-balance sheet financial
instruments - measured at fair value
Forward foreign exchange contracts - net - - - 14,540,146 - 14,540,146 - 14,087,066 - 14,087,066
There were no transfer of balances between fair value hierarchy levels during the period.
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
September 30, 2020 (Un-audited)
Carrying Value Fair Value
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
December 31, 2019 (Audited)
Carrying Value Fair Value
------------------------------------------------------------------------------- (Rupees in '000) -------------------------------------------------------------------------------
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from
34 SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
Corporate
Banking
SME &
Commercial
Banking
Consumer
Banking Treasury Other Total
Condensed Interim Profit and Loss Account
Net profit earned 6,384,037 976,603 (2,085,781) 3,998,046 (257,493) 9,015,412
Inter segment revenue - net (4,732,510) 991,498 6,680,657 (3,191,361) 251,716 -
Other income 277,378 422,954 743,827 232,106 809 1,677,074
Total income 1,928,905 2,391,055 5,338,703 1,038,791 (4,968) 10,692,486
Segment direct expenses (312,111) (854,962) (3,586,776) (151,665) - (4,905,514)
Inter segment expense allocation (72,971) (72,714) (441,879) (34,151) - (621,715)
Total expenses (385,082) (927,676) (4,028,655) (185,816) - (5,527,229)
Provisions (643,312) (307,601) (110,874) (11,435) 4,968 (1,068,254)
Profit before tax 900,511 1,155,778 1,199,174 841,540 - 4,097,003
Condensed Interim Statement of Financial Position
Cash and bank balances - 685,385 4,528,737 3,796,924 16,117,323 25,128,369
Due from financial institutions - - - - - -
Investments - - - 70,948,920 - 70,948,920
Net inter segment lending - 21,664,225 101,753,871 - 12,469,627 135,887,723
Islamic financings and related assets
- performing 106,502,143 42,053,050 34,330,246 - 2,039,464 184,924,903
- non-performing - net 1,824,714 717,968 310,982 - 30,709 2,884,373
Others 5,294,984 2,723,154 3,968,515 1,740,051 173,987 13,900,691
Total Assets 113,621,841 67,843,782 144,892,351 76,485,895 30,831,110 433,674,979
Due to financial institutions 5,696,464 6,103,839 - 5,500,102 - 17,300,405
Deposits & other accounts 39,009,829 57,287,200 138,400,482 110,583 - 234,808,094
Net inter segment borrowing 65,506,338 - - 70,381,385 - 135,887,723
Subordinated sukuk - - - - 7,120,000 7,120,000
Others 3,409,210 4,452,743 6,491,869 291,841 314,770 14,960,433
Total liabilities 113,621,841 67,843,782 144,892,351 76,283,911 7,434,770 410,076,655
Equity - - - 201,984 23,396,340 23,598,324
Total Equity and liabilities 113,621,841 67,843,782 144,892,351 76,485,895 30,831,110 433,674,979
Contingencies and Commitments 22,784,062 21,301,312 2,672,975 958,713 - 47,717,062
Corporate
Banking
SME &
Commercial
Banking
Consumer
Banking Treasury Other Total
Condensed Interim Profit and Loss Account
Net profit earned 5,130,259 1,550,960 (1,317,562) 1,600,057 450,022 7,413,736
Inter segment revenue - net (4,953,481) (108,317) 7,201,671 (1,678,165) (461,708) -
Other income 279,306 383,515 950,825 524,098 1,097 2,138,841
Total income 456,084 1,826,158 6,834,934 445,990 (10,589) 9,552,577
Segment direct expenses (325,674) (768,149) (3,320,546) (95,599) - (4,509,968)
Inter segment expense allocation (67,311) (63,657) (384,328) (31,969) - (547,265)
Total expenses (392,985) (831,806) (3,704,874) (127,568) - (5,057,233)
Provisions (310,726) (55,501) (140,364) (7,386) 10,589 (503,388)
Profit before tax (247,627) 938,851 2,989,696 311,036 - 3,991,956
Corporate
Banking
SME &
Commercial
Banking
Consumer
Banking Treasury Other Total
Statement of Financial Position
Cash and bank balances - 458,849 3,031,880 1,246,953 15,926,699 20,664,381
Due from financial institutions - - - - 5,590,405 5,590,405
Investments - - - 36,019,275 13,137,994 49,157,269
Net inter segment lending - 6,386,966 103,762,990 - - 110,149,956
Islamic financings and related assets - - - - -
- performing 99,881,434 38,178,508 36,106,797 - 1,953,539 176,120,278
- non-performing - net 525,803 940,366 314,922 - 20,468 1,801,559
Others 3,710,689 2,876,985 3,664,459 941,411 111,182 11,304,726
Total Assets 104,117,926 48,841,674 146,881,048 38,207,639 36,740,287 374,788,574
Due to financial institutions 5,402,741 2,411,162 - 2,000,000 - 9,813,903
Deposits & other accounts 27,993,604 43,155,769 138,679,832 122,868 - 209,952,073
Net inter segment borrowing 67,988,683 - - 34,240,681 7,920,592 110,149,956
Subordinated sukuk - - - - 7,120,000 7,120,000
Others 2,732,898 3,274,743 8,201,216 514,528 866,623 15,590,008
Total liabilities 104,117,926 48,841,674 146,881,048 36,878,077 15,907,215 352,625,940
Equity - - - 1,329,562 20,833,072 22,162,634
Total Equity and liabilities 104,117,926 48,841,674 146,881,048 38,207,639 36,740,287 374,788,574
Contingencies and Commitments 24,419,414 18,465,114 2,875,661 14,533,028 - 60,293,217
December 31, 2019 (Audited)
------------------------------------------------------ (Rupees in '000) ------------------------------------------------------
September 30, 2020 (Un-audited)
------------------------------------------------------ (Rupees in '000) ------------------------------------------------------
September 30, 2019 (Un-audited)
------------------------------------------------------ (Rupees in '000) ------------------------------------------------------
35 RELATED PARTY TRANSACTIONS
The details of transactions with related parties and balances with them are given below:
Balances with other banks
As at January 1 - 36,608 - - - 36,608 - 43,126 - - - 43,126
Deposited during the period / year - 24,771,762 - - - 24,771,762 - 83,983,617 - - - 83,983,617
Withdrawals during the period / year - (24,751,869) - - - (24,751,869) - (83,990,135) - - - (83,990,135)
Closing balance - 56,501 - - - 56,501 - 36,608 - - - 36,608
Investments
As at January 1 - - - - - - 1,290,092 - - - - 1,290,092
Investments made during the period / year - - - - - - - - - - - -
Investments redeemed during the period / year - - - - - - (1,290,092) - - - - (1,290,092)
Others - - - - - - - - - - - -
Closing balance - - - - - - - - - - - -
Islamic financing and related assets
As at January 1 - - - 169,899 - 169,899 - - - 184,341 - 184,341
Disbursed during the period / year - - - 8,095 - 8,095 - - - 34,365 - 34,365
Payments during the period / year - - - (36,905) - (36,905) - - - (46,365) - (46,365)
Adjustments * - - - 10,744 - 10,744 - - - (2,442) - (2,442)
Closing balance - - - 151,833 - 151,833 - - - 169,899 - 169,899
Due to Financial Institutions
As at January 1 - - - - - - - - - - - -
Borrowed during the period /year - - - - - - - 13,918,700 - - - 13,918,700
Repaid during the year period /year - - - - - - - (15,618,330) - - - (15,618,330)
Adjustments - - - - - - - 1,699,630 - - - 1,699,630
Closing balance - - - - - - - - - - - -
Deposits and other accounts
As at January 1 - 70,228 5,646 80,174 1,331,515 1,487,563 - 43,932 5,929 259,166 1,070,790 1,379,817
Received during the period / year - 4,561,322 84,745 358,254 237,878 5,242,199 - 2,975,721 235,914 648,021 1,540,482 5,400,138
Withdrawals during the period / year - (4,522,895) (80,353) (326,097) (301,239) (5,230,584) - (2,949,425) (236,197) (804,934) (1,279,757) (5,270,313)
Adjustments * - - (2,095) 775 - (1,320) - - (22,079) - (22,079)
Closing balance - 108,655 7,943 113,106 1,268,154 1,497,858 - 70,228 5,646 80,174 1,331,515 1,487,563
Other Liability
As at January 1, - - - - - - - - - - - -
Withheld during the period / year - - - 14,670 - 14,670 - - - - - -
Paid during the period / year - - - - - - - - - - - -
Closing balance - - - 14,000 - 14,000 - - - - - -
Transactions during the period
EX0253000Fees and allowances - - 7,318 7,528 - 14,846 - - 5,329 9,328 - 14,657
Remuneration to key management
personnel (Including bonus) - - - 240,045 - 240,045 - - - 236,925 - 236,925
Profit earned on investments - - - - - - 43,094 - - - - 43,094
Profit earned on financings - - - 8,743 - 8,743 - - - 9,062 - 9,062
Profit expensed on deposits - - 374 3,408 126,218 130,000 - - 69 3,641 100,268 103,978
Profit expense on due to financial institution - - - - - - - 340,339 - - - 340,339
Profit expensed on other liability - - - 670 - 670 - - - - - -
Contribution made to gratuity fund - - - - 55,800 55,800 - - - - 40,116 40,116
Contribution made to provident fund - - - - 82,193 82,193 - - - - 75,056 75,056
-
Contingencies and commitments -
Foreign currency purchase contracts - 5,061,944 - - - 5,061,944 - 26,650,872 - - - 26,650,872
Foreign currency sale contracts - 5,051,944 - - - 5,051,944 - 27,662,611 - - - 27,662,611
* Primarily relates to those directors, associates and key management personnel who are no longer related parties or have become related parties of the Bank as at September 30, 2020.
* * Represents Dubai Islamic Bank Pakistan Limited's Provident & Gratuity Funds.
Associated
companies
Holding
CompanyDirectors
Key manage-
ment
personnel
Others**
The Bank has related party relationship with Dubai Islamic Bank P.J.S.C, U.A.E, the holding company, directors, related group companies and associated undertakings, key management personnel and Staff Retirement Funds.
A number of banking transactions are entered into with related parties in the normal course of business. These include financing and deposit transactions. These transactions are executed substantially on the same terms including profit
rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than a normal risk. Contributions to staff retirement benefit plan are made in accordance with the terms of
the contribution plan. Remuneration and other benefits to the executives are determined in accordance with the terms of their appointment.
Usual transactions with related parties include deposits, financing, returns and provision of other banking services. Transactions with executives are undertaken at terms in accordance with employment agreements and service rules.
September 30, 2020 (Un audited) December 31, 2019 (Audited)
Total
--------------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------------
September 30, 2020 (Un audited) September 30, 2019 (Un audited)
Associated
companies
Holding
CompanyDirectors
Key manage-
ment
personnel
Others** Total
TotalAssociated
companies
Holding
CompanyDirectors
Key manage-
ment personnelOthers**
--------------------------------------------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------------------------------------
Associated
companies
Holding
CompanyDirectors
Key manage-
ment personnelOthers** Total
36 CAPITAL ADEQUACY, LEVERAGE RATIO & September 30, December 31,
LIQUIDITY REQUIREMENTS 2020 2019
(Un-audited) (Audited)
Minimum Capital Requirement:
Paid-up capital 11,652,288 11,652,288
Capital Adequacy Ratio:
Eligible Common Equity Tier I Capital 23,086,898 20,709,655
Eligible Additional Tier I Capital 3,120,000 3,120,000
Total Eligible Tier I Capital 26,206,898 23,829,655
Eligible Tier II Capital 5,100,843 5,398,283
Total Eligible Capital (Tier I + Tier II) 31,307,741 29,227,938
Risk Weighted Assets:
Credit Risk 166,286,820 150,016,588
Market Risk 492,948 819,371
Operational Risk 19,820,569 19,820,569
Total 186,600,337 170,656,528
Common Equity Tier I Capital Adequacy Ratio 12.37% 12.14%
Tier I Capital Adequacy Ratio 14.04% 13.96%
Total Capital Adequacy Ratio 16.78% 17.13%
Leverage Ratio:
Eligible Tier I Capital 26,206,898 23,829,655
Total Exposures 354,737,207 311,597,281
Leverage Ratio 7.39% 7.65%
Liquidity Coverage Ratio:
Total High Quality Liquid Assets 65,997,283 55,984,443
Total Net Cash Outflow 31,475,838 27,417,495
Liquidity Coverage Ratio 209.68% 204.19%
Net Stable Funding Ratio:
Total Available Stable Funding 243,786,666 212,998,329
Total Required Stable Funding 212,855,257 195,663,912
Net Stable Funding Ratio 114.53% 108.86%
----- Rupees in '000 -----
37 DATE OF AUTHORISATION FOR ISSUE
This condensed interim financial information was authorised for issue on October 19,2020 by the Board of Directors of the Bank.
38 GENERAL
Figures have been rounded off to the nearest thousand Rupees, unless otherwise stated.