Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed...

25
Dubai Islamic Bank Pakistan Limited Financial Statements For the period ended September 30, 2020

Transcript of Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed...

Page 1: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

Dubai Islamic Bank

Pakistan Limited

Financial Statements

For the period ended September 30, 2020

Page 2: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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

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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

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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.

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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.

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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.

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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.

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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.

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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.

Page 10: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) -----------------------------------------------------------

Page 11: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) ---

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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) ---

Page 13: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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.

Page 14: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) ---

Page 15: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) ----

Page 16: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) -------------------

Page 17: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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.

Page 18: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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)

Page 19: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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)

Page 20: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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)

Page 21: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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

Page 22: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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) ------------------------------------------------------

Page 23: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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

Page 24: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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 -----

Page 25: Dubai Islamic Bank Pakistan Limited...2020/09/30  · Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30. 2020 ASSETS Note September

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.