Professional Documents
Culture Documents
Notice is hereby given that the 15th Annual General Meeting of mybank Limited will be held on Friday,
March 30, 2007 at 9:45 a.m. at its Registered Office situated at Regal Chowk, Jinnah Road, Quetta to transact
the following business:
1. To confirm the minutes of the 14th Annual General Meeting of the Bank held on March 31, 2006.
2. To receive, consider and adopt the Audited Accounts of the Bank together with the Directors’ and Auditor’s
Reports thereon for the year ended December 31, 2006.
3. To appoint the auditors for the year ending December 31, 2007 and to fix their remuneration. The present
Auditors M/s. M. Yousuf Adil Saleem & Co., Chartered Accountants, have offered themselves for
re-appointment as auditors of the Bank.
Special Business
4. To approve payment of remuneration and provision of certain facilities to the President and
CEO of the Bank
5. To transact any other business of the Bank with the permission of the Chair
Place: Karachi
Date: February 23, 2007
Notes:
1. Share Transfer Books of the Bank will remain closed from March 24, 2007 to March 30, 2007
(both days inclusive).
2 A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend the meeting
and vote for him/her. A Proxy must be a member of the Bank. Proxy forms in order to be effective must
be received by the Bank at the Registered Office not later than 48 hours before the time of the meeting.
3 CDC members are requested to bring with them their Computerized National Identity Cards alongwith
Participant’s ID numbers and their account numbers at the time of attending the Annual General Meeting
in order to facilitate identification of the respective members. In case of corporate entity, the Board of
Directors Resolution/Power of Attorney with specimen signatures be produced at the time of meeting.
4 Members are requested to promptly notify the change of address, if any, and also for the consideration of
folio numbers, if any member holds more than one folio, to the Registrar.
To approve the payment of remuneration and provision of certain facilities to the President and CEO of the
Bank. In this regard, the following proposed Ordinary Resolution be put before the shareholders of the Bank
for their approval.
“RESOLVED THAT The President & Chief Executive Officer’s remuneration not exceeding Rs.1,000,000/- per
month excluding two bank maintained cars with petrol at actual, telephone bills at actual, international business
class air ticket for self and spouse once a year, along with other perquisites, benefits and allowances to which
he is entitled under his terms of employment, be and is hereby approved by the Bank”.
During the first time in the Bank’s history, the Board of Directors declared
5% Cash Dividend to convey the commitment of the Board of Directors
and the management, both to the internal and external stakeholders. At
the same time we have also put significant focus on core banking activities
to generate business which is imperative in the long term stability of the
organization.
The change of senior management team in August 2006 turned out very
positive in terms of business. The focus is to compete with peer banks
and cater multiple economic segments. We will continue to invest in
People, Premises and Technology, develop a core team of seasoned
professionals, growing branch network not only in bigger cities but also
in remote areas where the banking facilities have not been extended yet
and automate operations to ensure effective internal controls and enforce
Enterprise Risk Management.
IQBAL ALIMOHAMED
Chairman
Place: Karachi
Date: February 23, 2007
Financial Highlights
Rs in Millions
December December Increase /
2006 2005 (Decrease)
Deposits 19,169.226 12,856.615 49%
Advances
(Net of Provision) 13,486.839 9,294.381 45%
Gross Assets 26,549.480 17,218.757 54%
Insha Allah with the support of all stakeholders and motivated team of
professionals, we have planned desirable projections for the year 2007
when mybank will place itself amongst the top performing banks within
next three years.
Changing economic conditions with growing customer database is another
positive outlook of the years to come. We look forward to seek guidance
from the regulators, the State Bank of Pakistan and the Securities Exchange
Commission of Pakistan through their team of strong professionals.
My thanks to the Customers and Staff for their continuous support and
loyalty with a commitment to deliver the Bank’s Vision and Core Values
in true spirits.
MUHAMMAD BILAL SHEIKH
President & Chief Executive Officer
Place: Karachi
Date: February 23, 2007
Performance Review
During the year 2006, the Bank made significant progress in all major areas. The Bank remained focused on
achieving its targets of growth in revenue, profitability, deposits and significant progress in all areas of operations.
The operating financial results of the Bank are summarized as follows:
Rs. in ‘million’
The Board appointed Mr. Muhammad Bilal Sheikh as President & CEO of the Bank. He took charge of the
office with effect from August 11, 2006. Mr. Muhammad Bilal Sheikh is a seasoned banker with almost 40
years of diversified experience in banking; he enjoys a very high reputation in the banking industry. His last
assignment before joining mybank Limited was President & Chief Executive Officer, PICIC Commercial Bank
Limited. Prior to that, Mr. Sheikh also served as Deputy Managing Director PICIC Corporation Limited and
Chairman National Development Finance Corporation (NDFC).The Board of Directors welcomes Mr. Muhammad
Bilal Sheikh to the Bank.
Mr. Muhammad Humayun Nabi Jan resigned from the Board and Mr. Afzal Ghani was co-opted in his place
on August 25, 2006 in the 97th meeting of the Board of Directors.
Mr. Muhammad Bilal Sheikh, President & CEO, is also a member of the Board.
Cash Dividend
For the first time in mybank history, the Board of Directors declared 5% Cash Dividend as a mark of commitment
to its shareholders.
As per the requirement of the State Bank of Pakistan, Banking Supervision Department circular No. 12 dated:
August 25, 2006, the Bank increased the Paid-up Capital through 50 percent Right Issue (R5) at Par. The Paid-
up Capital of the Bank was enhanced from Rs. 2.057 billion to Rs. 3.058 billion in December 2006.
Credit Rating
The Bank enjoys A- (A minus) for the medium to long term and A-2 (A-two) for the short term with a stable
outlook by Pakistan Credit Rating Agency Limited.
c) Appropriate accounting policies have consistently been applied in preparation of financial statements and
accounting estimates are based on reasonable and prudent judgment.
d) International Accounting Standards, as applicable to banks in Pakistan, have been followed in the preparation
of financial statements without any material departure.
However, the State Bank of Pakistan has specifically deferred the implementation of International Accounting
Standard 39, Financial Instruments: Recognition and Measurement and International Accounting Standard
40, Investment Property, till further instructions. Accordingly the requirements of those standards have not
been followed in the preparation of these financial statements.
e) The system of internal control is sound in design and has been effectively implemented and monitored.
g) There has been no material departure from the best practices of corporate governance as detailed in the
listing regulations of the stock exchanges of Pakistan.
h) Summarized key operating and financial data of the last six years is tabulated in this Annual Report.
i) The details of Board Meetings held and attended by the directors forms part of this Annual Report.
j) The prescribed pattern of shareholding is given as part of the Annual Report along with the disclosure
requirement of clause (xix) sub clause(j) of the Code of Corporate Governance issued by the Securities &
Exchange Commission of Pakistan.
Going forward, the Bank plans to grow the balance sheet size significantly. Paradigm shift in deposits and
profitability is of immense importance among other strategic initiatives. Substantial resources in terms of human
efforts are being applied towards settlement of past misdeeds; classified/ non-performing loans.
IT Infrastructure
Technology revamping is underway and the User Acceptance Test has been successfully completed. The rollout
is under implementation of both Misys modules i.e. Equation and EBA. The deployment of Equation Branch
Automation (front-end) will automate cashier/teller services reducing turn around time of various banking
services/products. The deployment of Equation (back-end) will centralize end of day reporting, and enable
the maker/checker concept further segregating front-end and back-end functions, thereby strengthening
operational controls. Equation today helps banks improve their business by increasing customer revenues,
reducing risk and driving business efficiency. This is achieved through the creative application of straight-
through-processing, automation and centralization. Currently our focus is to implement Misys in parallel to
Unibank targeting first the Karachi Region Branches and then the other regions. Once Misys is deployed
successfully we will be working on the phase out of Unibank as the primary system.
The formal contracts have been signed off with MSCL and TPS to develop an ATM interface with Misys our
new core banking system which will enable us to deploy our own ATM machines in the very near future.
These ATM machines will be strategically located not only in the bigger cities both at the branches and offsite
locations, but also remote areas allowing customers from all walks of life to be able to carry-out their transactions
around the clock. The Bank has also signed off contract with 1-Link which will enable us to diversify into other
financial products/services such as debit/credit cards and payment of utility bills via ATM machines.
The Bank has invested heavily in PC deployment. Our network strategy is based on deploying LAN/WAN
connecting all our 50 branches through three main hubs of Karachi, Islamabad and Lahore. This network will
enable centralized, real time processing of banking services. The integration of Trade Innovations with Equation
will centralize Foreign Trade Processing again reducing processing turn around and approval times.
Our core strategy is to eventually integrate all other systems including the Consumer Asset Management System
(CAMs), Margin Connect, SWIFT, HR Payroll with our core banking system i.e. Equation for effective controls
and monitoring and reduced processing times. We are also working on proposals to implement our Disaster
Recovery Strategy in due course of time.
The deployment strategy for Lotus Notes is already ensuring paperless environment and faster communication
between the various internal customers and stakeholders in the bank.
Training is a very crucial part of our IT strategy where we have invested in foreign Misys consultants to train
our staff on the new core banking system. We have also developed a core UAT user team of 11 staff who will
not only be responsible for the roll-out of the system but also for training them on it.
In terms of IT security strategy we have developed and implemented essential policies and are also in the
process of implementing an intrusion detection system which will further safeguard our network. We have
also implemented e-CIB reporting and are also working to implement other regulatory requirements such as
RTGS along with the relevant staff training.
Acknowledgement
We would like to express our gratitude and thanks to the State Bank of Pakistan, Securities & Exchange
Commission of Pakistan for their professional support and guidance. Our gratitude is due to our customers
for the confidence that they have expressed in the Bank. We thank our shareholders for their patronage and
help. We also thank the management and the staff for their hard work and commitment.
On behalf of the Board
Iqbal Alimohamed
Chairman
Place: Karachi
Date: February 23, 2007
The Bank has applied the principles contained in the Code in the following manner:
1. The Bank encourages representation of independent Non - Executive Directors and Directors representing
minority interests on its Board of Directors. At present the Board comprises of seven Non- Executive
Directors.
2. The Directors have confirmed that none of them is serving as a Director in more than ten listed companies,
including this Bank.
3. All the Non - Executive Directors of the Bank are registered as a tax payers and none of them has defaulted
in payment of any loan to a banking company, a DFI or an NBFI and are not members of any stock
exchange.
4. The casual vacancy occurred during the year in the Board of Directors have been filled in by the Directors
within the stipulated time.
5. The Bank has prepared a ‘Statement of Ethics and Business Practices’ which has been signed by all the
Directors and employees of the Bank.
6. The Board has developed a vision / mission statement, core values, overall corporate strategy and significant
policies of the Bank. A complete record of particulars of significant policies along with the dates on which
these were approved or amended has been maintained.
7. The Board has the following functioning Committees and their terms of reference have been approved
by the Board:
a. Audit Committee – also ensures the independence of the internal audit function and the independence
and objectivity of the external auditors.
b. Human Resource Management Sub-Committee – also monitors the remuneration and appointments of
senior management as defined in the terms of reference as well as personnel policies and its implementation.
c. Credit and Risk Management Committees – also ensures compliance of the Bank’s Credit Policies, Risk
Management Framework and SBP Prudential Regulations.
8. All the powers of the Board have duly been exercised and decision on material transaction, including
appointment and determination of remuneration and terms and conditions of employment of the CEO
have been taken by the Board.
9. The meetings of the Board were presided over by the Chairman and the Board met eight (8) times in the
year. Written notices of the Board meetings, along with agenda and working papers are always circulated
at least seven days before the meetings. The minutes of the meetings were appropriately recorded and
circulated.
10. The members of the Board have attended a presentation on Corporate Governance conducted by the
Secretary of the Bank to acquaint them with their duties and responsibilities. Further training courses will
be conducted in year 2007 to enhance the Board members understanding of their responsibilities and
duties under the code.
12. The Directors’ report for this year has been prepared in compliance with the requirements of the code
and which fully describes the salient matters required to be disclosed.
13. The information regarding change of Directors has been communicated to the Securities and Exchange
Commission of Pakistan (SECP) and Stock Exchanges within the stipulated time.
14. The financial statements of the Bank were duly endorsed by CEO and CFO prior to presentation before
the Audit Committee and the Board of Directors for approval.
15. The Directors, CEO and Executives of the Bank do not hold any interest in the shares of the Bank other
than that disclosed in the pattern of shareholding.
16. The Bank has complied with all the corporate and financial reporting requirements of the code.
17. The Board has formed an Audit Committee, which comprises of four members, all of whom are Non -
Executive Directors including the Chairman of the Committee.
18. The meetings of the Audit Committee were held at least once every quarter prior to approval of interim
and final results of the Bank and as required by the code. The terms of reference of the Committee have
been formed and advised to the Committee for compliance.
19. The Board has set-up an Internal Audit Division. The Internal Audit Division reports directly to the
Chairman Audit Committee.
20. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under
the quality control review program of the Institute of Chartered Accountants of Pakistan, and they or any
of the partners of the firm, their spouses and minor children do not hold shares of the Bank and that the
firm and all of its partners are in compliance with International Federation of Accountants Committee
(IFAC) guidelines on code of ethics as adopted by the Institute of Chartered Accountants of Pakistan.
21. The statutory auditors or the persons associated with them have not been appointed to provide other
services except in accordance with the listing regulations and auditors have confirmed that they have
observed IFAC guidelines in this regard.
22. The quarterly un-audited financial statements of the Bank are circulated along with the Report of Directors.
Half-yearly financial statements were subjected to limited review by the statuary auditors. Financial
statements for the year ended December 31, 2006 have been audited and circulated in accordance with
the clause (xxii) of the code.
23. All material information as described in clause (xxiii) of the code is disseminated to the Stock Exchange
and Securities and Exchange Commission of Pakistan in a timely fashion.
24. We confirm that all other material principles contained in the code have been complied with.
Place: Karachi
Date: February 23, 2007
The following statements are made by the management, to meet the requirements of the State Bank of Pakistan
(SBP) circular No. BSD 7 of 2004, Banking Supervision Department circular letter No. 2 of 2005 and the Code
of Corporate Governance issued by the Securities & Exchange Commission of Pakistan (SECP).
1. The management has adopted different strategies to monitor and improve internal controls on going basis.
These include internal audit and various management committees. In addition the management had
arranged review of the design and effectiveness of the system of internal control through policy revision
outsourced to a consultant firm specialized in audit and control procedures, which is currently being
implemented. The reviews of the internal controls are being strengthened and measures for improvement
where required are implemented.
2. The Bank has adopted a statement of ethics and business practices that is signed by all Directors and
employees every year. Further, a compliance function has been established to ensure ongoing monitoring
of Bank’s compliance with laws, regulations and code of ethics.
3. The Bank has written policies and procedures duly approved by the Board of Directors and are presently
under review and being revised.
4. The Bank has mission, vision and corporate strategy duly approved by the Board.
5. A comprehensive and enhanced organization structure is being developed which supports clear lines of
communication and tiered levels of authority with delegation of responsibility and accountability.
6. The Bank has an effective internal audit division, which reports directly to the Audit Committee of the
Board. The internal audit periodically carries out audits of branches and central office divisions to monitor
the compliance of Bank’s policies and procedures based on an audit plan approved by the Audit Committee.
7. Management gives due considerations to the recommendations made by the internal and external auditors
for improvements in the internal control system and take timely action to implement such recommendations.
8. The management has in place evaluation and approval procedures for major capital expenditure and
other transactions.
9. There is an annual budgeting and strategic planning process. Financial forecasts are reviewed during the
year to reflect significant changes in business environment. Regular reporting and monitoring of financial
performance of the divisions highlighting key performance indicators and variance from budgets and
forecasts, is in place.
During the year 2006, the Bank made considerable efforts in maintaining a suitable internal control framework,
considering size of its operations, to ensure a comfortable level of effectiveness, efficiency and soundness of
its internal control system and in implementing the desired control procedures.
During the year, the management initiated necessary steps to ensure non-repetition and elimination of
observations, deficiencies and weaknesses identified by the statuary auditors, internal audit and the regulatory
agency to the maximum possible level. The existing policies and procedures are being reviewed and revised.
Additionally, the Bank is also in the process of strengthening its systems for capturing and communicating
relevant information and had acquired state of art technology which is in the pilot phase of implementation.
Based on the evaluation of the system of internal control, the management assesses that the internal control
system, customer services and operation was adequate, considering the size and nature of banks operations,
and expect that the internal control system will further improve in the period ahead.
Place: Karachi
Date: February 23, 2007
The responsibility for compliance with the Code is that of the Board of Directors of the Bank. Our responsibility
is to review, to the extent where such compliance can be objectively verified, whether the Statement of
Compliance reflects the status of the Bank’s compliance with the provisions of the Code of Corporate Governance
and report if it does not. A review is limited primarily to inquiries of the Bank personnel and review of various
documents prepared by the Bank to comply with the Code.
As part of our audit of financial statements we are required to obtain an understanding of the accounting and
internal control systems sufficient to plan the audit and develop an effective audit approach. We have not
carried out any special review of the internal control system to enable us to express an opinion as to whether
the Board’s statement on internal control covers all controls and the effectiveness of such internal controls.
Based on our review, nothing has come to our attention, which causes us to believe that the Statement of
Compliance does not appropriately reflect the Bank’s compliance, in all material respects, with the best practices
contained in the Code of Corporate Governance as applicable to the Bank for the year ended December 31,
2006.
It is the responsibility of the bank’s Board of Directors to establish and maintain a system of internal control,
and prepare and present the financial statements in conformity with approved accounting standards and the
requirements of the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984
(XLVII of 1984). Our responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan.
These standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence
supporting amounts and disclosures in the financial statements. An audit also includes assessing the accounting
policies and significant estimates made by management, as well as, evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable basis for our opinion and after due
verification, which in case of loans and advances covered more than 60 percent of the total loans and advances
of the bank, we report that:
(a) In our opinion proper books of account have been kept by the bank as required by the Companies
Ordinance, 1984 (XLVII of 1984), and the returns referred to above received from the branches have
been found adequate for the purposes of our audit;
(i) The balance sheet and profit and loss account together with the notes thereon have been drawn
up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies
Ordinance, 1984 (XLVII of 1984), and are in agreement with the books of account and are further
in accordance with accounting policies consistently applied;
(ii) The expenditure incurred during the year was for the purpose of the bank’s business; and
(iiii) The business conducted, investments made and the expenditures incurred during the year were
in accordance with the objects of the bank and the transactions of the bank which have come
to our notice have been within the powers of the bank;
(c) In our opinion and to the best of our information and according to the explanations given to us the
balance sheet, profit and loss account, cash flow statement and statement of changes in equity together
with the notes forming part thereof, conform with the approved accounting standards as applicable
in Pakistan, and give the information required by the Banking Companies Ordinance, 1962 (LVII of
1962), and the Companies Ordinance, 1984 (XLVII of 1984), in the manner so required and give a true
and fair view of the state of the bank’s affairs as at December 31, 2006 and its true balance of the profit,
its cash flows and changes in equity for the year then ended; and
(d) In our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980),
was deducted by the bank and deposited in the Central Zakat Fund established under section 7 of that
Ordinance.
2006 2005
Note Rupees in ‘000
ASSETS
Cash and balances with treasury banks 6 1,990,052 1,410,398
Balances with other banks 7 1,222,089 404,735
Lendings to financial institutions 8 4,030,887 1,533,503
Investments 9 2,961,220 3,252,736
Advances 10 13,486,839 9,294,381
Operating fixed assets 11 2,036,225 772,148
Deferred tax assets 12 131,587 135,409
Other assets 13 690,581 415,447
26,549,480 17,218,757
LIABILITIES
Bills payable 14 225,322 266,152
Borrowings 15 1,624,470 1,339,662
Deposits and other accounts 16 19,169,226 12,856,615
Sub-ordinated loans – –
Liabilities against assets subject to finance lease – –
Deferred tax liabilities – –
Other liabilities 17 464,828 206,706
21,483,846 14,669,135
NET ASSETS 5,065,634 2,549,622
REPRESENTED BY
Profit for the year ended December 31, 2005 – – 274,250 274,250
Profit for the year ended December 31, 2006 – – 492,888 492,888
2. BASIS OF PRESENTATION
In accordance with the directives of the Federal Government regarding the shifting of the banking system
to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible
forms of trade-related modes of financing include purchase of goods by banks from their customers and
immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and
sales arising under these arrangements are not reflected in these financial statements as such but are
restricted to the amount of facility actually utilized and the appropriate portion of mark-up there-on.
3. STATEMENT OF COMPLIANCE
These financial statements are prepared in accordance with the directives issued by the State Bank of
Pakistan, the Banking Companies Ordinance, 1962, the Companies Ordinance, 1984, and approved
accounting standards as applicable in Pakistan. Approved accounting standards comprise of such
International Financial Reporting Standards as are notified under the provisions of the Companies
Ordinance, 1984. Wherever the requirements of the Banking Companies Ordinance, 1962, the Companies
Ordinance, 1984, or directives issued by the State Bank of Pakistan and the Securities and Exchange
Commission of Pakistan differ with the requirements of these standards, the requirements of the Banking
Companies Ordinance, 1962, the Companies Ordinance, 1984, and the requirements of the said
directives take precedence.
The SECP has approved the adoption of International Accounting Standard 39, "Financial Instruments:
Recognition and Measurement" and International Accounting Standard 40, "Investment Property". The
requirements of these standards have not been taken into account for the purpose of these financial
statements as the implementation of the said standards has been deferred by SBP, vide BSD circular number
10 dated August 26, 2002, for banks in Pakistan till further instructions. However, investments have been
classified and valued in accordance with the requirements of various circulars issued by SBP.
Standard, interpretation and amendment to published approved accounting standards that are not yet
effective
The following amendments to existing standards have been published that are applicable to the Bank's
financial statements covering annual periods, beginning on or after the following dates:
(i) IAS-1, "Presentation of Financial Statements"
- Capital Disclosures effective from January 01, 2007
(ii) IFRIC 11, IFRS 2- " Group Treasury Share Transactions" effective from March 01, 2007
(iii) IFRIC 12, " Service Concession Arrangements" effective from January 01, 2009
Adoption of the above amendments / interpretations may only impact the extent of disclosures presented
in the financial statements.
In addition to above, a new series of standards called "International Financial Reporting Standards (IFRSs)"
have been introduced and seven IFRSs have been issued by IASB. Out of these, following four IFRSs
have been adopted by SECP vide its S.R.O. (I)/2006 dated December 06, 2006.
(i) IFRS-2 "Share-based Payments";
(ii) IFRS-3 "Business Combinations";
(iii) IFRS-5 " Non-current Assets Held for Sale and Discontinued Operations"; and
(iv) IFRS-6 " Exploration for and Evaluation of Mineral Resources".
4. BASIS OF MEASUREMENT
These financial statements have been prepared under the ‘historical cost convention’ as modified by
revaluation of land and buildings and valuation of certain investments and derivative financial instruments
at fair value.
The preparation of financial statements in conformity with International Accounting Standards requires
the use of certain critical accounting estimates. It also requires management to exercise its judgement
in the process of applying the Bank’s accounting policies. The areas involving a higher degree of judgement
or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in Note 5.13.
2006 2005
Note Rupees in ‘000
6.1 Deposits are maintained with the State Bank of Pakistan (SBP) to comply with their requirements issued
from time to time.
6.2 This represents non-remunerative cash reserve of 5 percent on deposits held under the new foreign
currency account scheme, required to be maintained with the State Bank of Pakistan.
6.3 This represents statutory cash reserve maintained against foreign currencies deposits mobilised under
FE-25 scheme, as prescribed by the State Bank of Pakistan (SBP) and is remunerated on monthly basis
at rate of return specified by the SBP.
2006 2005
Note Rupees in ‘000
2006 2005
Note Rupees in ‘000
8.1 These represent clean placements and call money lendings to various non-banking finance companies
and financial institutions with maturity period of 4 days and carry mark-up ranging from 12.00 percent
to 12.50 percent per annum (2005: 5.75 percent to 13.00 percent per annum).
8.2 These represent lendings to financial institutions against purchase of government securities and listed
shares under resale obligation (reverse repo) at mark-up rates ranging from 8.40 percent to 15.00 percent
per annum for periods ranging between 4 to 47 days. These are secured against underlying government
securities and listed shares. The difference between purchase and resale purchase price is treated as
mark-up income and recognised over the period of reverse repo agreement.
2006 2005
Rupees in ‘000
8.5 Market value of the collaterals held under repurchase agreement lending amounts to Rs. 3,678 million.
9. INVESTMENTS
9.1 INVESTMENTS BY TYPES
2006 2005
Note Held by Given as Total Held by Given as Total
the Bank collateral the Bank collateral
Rupees in ‘000
Held-for-trading securities
Listed companies’ shares 248,715 – 248,715 149,788 – 149,788
Mutual fund - units - listed 88,929 – 88,929 – – –
337,644 – 337,644 149,788 – 149,788
Available-for-sale securities
Market Treasury Bills 779,163 – 779,163 – – –
National Investment Trust units 346,250 – 346,250 – – –
Term finance certificates 254,893 – 254,893 – – –
Unlisted companies’ shares 10,000 – 10,000 10,000 – 10,000
Mutual funds - units - listed 313,913 – 313,913 488,035 – 488,035
Mutual funds - units - unlisted 75,000 – 75,000 – – –
Certificates of investment 250,000 – 250,000 – – –
Preference shares 50,000 – 50,000 50,000 – 50,000
2,079,219 – 2,079,219 548,035 – 548,035
Held-to-maturity securities
Pakistan Investment Bonds 539,535 – 539,535 552,198 – 552,198
Market Treasury Bills – – – 1,243,280 – 1,243,280
Term finance certificates – – – 650,484 – 650,484
WAPDA bonds 50,996 – 50,996 51,747 – 51,747
590,531 – 590,531 2,497,709 – 2,497,709
Investment at cost 3,007,394 – 3,007,394 3,195,532 – 3,195,532
Less: Provision for diminution
in value of Investments – – – – – –
Investments (net of provisions) 3,007,394 – 3,007,394 3,195,532 – 3,195,532
Surplus / (deficit) on
revaluation of 9.4 40,993 – 40,993 (902) – (902)
held-for-trading securities
Surplus / (deficit) on
revaluation of available
-for-sale securities 19 (87,167) – (87,167) 58,106 – 58,106
Investments at market value 2,961,220 – 2,961,220 3,252,736 – 3,252,736
9.2.1 Market treasury bills and Pakistan investment bonds are held with the State Bank of Pakistan and are
eligible for re-discounting.
9.2.2 This includes securities having face value of Rs. 12.10 million (2005:Rs. 12.10 million) pledged with
National Bank of Pakistan as security to facilitate T.T discounting of the branches of the Bank.
9.3.1 Fair value of these investments can not be calculated as active market does not exist.
9.3.2 These represent the break-up values of the assets which are higher than the cost at which these have
been carried in the financial statements.
9.4 Unrealized gain / (loss) on revaluation of investments classified as held for trading
40,993 (902)
Pakistan investment bond Feb 2011 to Oct 2013 On maturity 8.00 to 14.00 Semi-annually
Market treasury bills Feb 2007 to Dec 2007 On maturity 8.64 to 9.00 At maturity
Bosicor Pakistan Ltd. After 2 years on equal Semi-annually 6 month KIBOR plus 550 bps with
basis - over 5 years a floor and cap respectively of
9.00 and 13.00 percent per
annum.
Dewan Textile Mills Ltd. Over 4 years Quarterly SBP discount rate plus 1.50
percent with floor and cap
respectively of 7.50 and 12.50
percent per annum.
Dewan Mushtaq Textile Mills Ltd. Over 4 years Quarterly SBP discount rate plus 1.50
percent with floor and cap
respectively of 7.50 and 12.50
percent per annum.
Crescent Leasing Corp. Ltd. Over 5 years Semi-annually Average 'ask side' rate of 6 month
KIBOR plus 175 bps with no floor
and no cap.
Dewan Farooq Spinning Mills Ltd. After 18 months - over Semi-annually Average 6 months KIBOR plus
5 Years 3.75 percent per annum.
Telecard Ltd. Over 6 years Semi-annually Average 6 months KIBOR plus
3.75 percent per annum.
Azgard Nine Ltd. Over 7 years Semi-annually Average 6 months KIBOR plus
3.75 percent per annum.
Less: Deficit on revaluation of mutual funds (net)- available - for - sale (57,782)
Add: Surplus revaluation of mutual funds (net) - held-for-trading 35,345
Market Value as on December 31 455,405
9.9 Investment in term finance certificate - listed - each with face value of Rs. 5,000
Redeemed Value
2006 2005
No. of certificates Name of Company Name of Chief Executive Rupees in ‘000
10,000 10,000 Crescent Leasing Mr. Javed A. Challea 30,000 40,000
Corporation Ltd.
15,000 15,000 Telecard Ltd. Mr. Sultan-ul-Arfeen 70,283 74,985
20,000 20,000 Azgard Nine Ltd. Mr. Mueen Afzal 99,980 100,000
45,000 45,000 200,263 214,985
Investment in term finance certificate - unlisted - each with face value of Rs. 5,000
Pak Mobile
– 20,000 Telecommunication Ltd. Mr. Hamid Farooq – 100,000
6,000 6,000 Bosicor Pakistan Ltd. Mr. Pervaiz Abbasi 25,714 30,000
Dewan Textile Mr. Dewan Ghalib
8,000 8,000 Mill Ltd. Mustafa Khalid 5,000 15,000
Dewan Mushtaq Mr. Dewan Ghalib
8,266 8,266 Textile Mill Ltd. Mustafa Khalid 5,166 15,498
Dewan Farooq
5,000 5,000 Spinning Mills Ltd. M. Yousuf Farooqi 18,750 25,000
Pak Arab Fertilizer
– 25 Pvt. Ltd. Mr. Tanveer Ahmed – 250,000
(face value of
Rs. 10 million each)
27,266 47,291 54,630 435,498
72,266 92,291 256,070 650,483
1,000,000 9.10.1 Khushhali Bank Ltd. Mr. Ghalib Nishtar 0.60% 10 10,000 11,030 Dec-05
5,000,000 9.10.2 Pak Elektron Ltd. (PEL) Mr. Naseem Saigol 4.00% 10 50,000 129,400 Jun-06
9.10.1 This represents the Bank’s subscription towards the paid up capital of Khushhali Bank in terms of
SBP letter No. BSD ( RU-26) 265)/625-MfB/13817/00 dated August 07, 2000. The break up value
per share was Rs.11.03.
9.10.2 These preference shares carry fixed dividend of 9.50 percent on cumulative basis. For redemption,
payment of call option can be exercised by PEL upto 75 percent after 3 years but before 5 years of
issue at the higher of three months average quoted price of preference shares plus any cumulative
unpaid dividend or issue price plus call premium of 1.0 percent plus any cumulative unpaid dividends.
Conversion option of preference shares into ordinary shares can be exercised by the Bank upto 25
percent after 3 years but before 5 years of issue date as per ratio specified in the agreement.
2006 2005
Note Rupees in ‘000
10. ADVANCES
Loans, cash credits, running finances, etc.
In Pakistan 13,123,628 8,637,206
Outside Pakistan – –
13,123,628 8,637,206
Bills discounted and purchased
(excluding treasury bills)
Payable in Pakistan 467,098 546,303
Payable outside Pakistan 296,054 140,351
763,152 686,654
Financing in respect of
continuous funding system (CFS) 10.7 6,743 389,145
Advances - Gross 10.1 13,893,523 9,713,005
Provision against loans and advances
Specific provision (403,844) (413,379)
General provision against consumer loans (2,840) (5,245)
10.3 (406,684) (418,624)
Advances - net of provision 13,486,839 9,294,381
10.1 Particulars of advances - Gross
10.1.1 In local currency 13,886,275 9,713,005
In foreign currencies 7,248 –
13,893,523 9,713,005
10.3.2 During the current year, in order to comply with the requirements of BSD Circular No. 02, dated
January 14, 2006, issued by the SBP, the Bank changed the method of computation of provision
against the non-performing advances. The Circular requires the Bank to create provision at a rate of
25 percent, instead of 10 percent of non-performing loans, in the substandard category. The Circular
also requires the adjustment of the Forced Sale Value (FSV) of the collaterals to financing facilities
of Rs. 10.00 million and above as against the previous requirement to restrict the same to financing
facilities of Rs. 5.00 million and above, for the purposes of determining provision against non-
performing advances.
Had the above referred increase in the rate of the provision for substandard category and increase
in the limit of financing for taking the benefit of the FSV not occurred, profit before taxation for the
current period and advances net of provision at the end of the current period would have been higher
by Rs. 61.00 million.
10.4.2 Write offs of Rs. 500,000 and above 10.5 49,083 46,499
Write offs of Below Rs. 500,000 629 423
49,712 46,922
10.7 This represents secured financing in respect of purchase of shares from the CFS market and carries
markup of 12.63 percent (2005: 12.12 percent) per annum.
11.1.1 This includes payments made towards implementation of Misys (Core Banking Application
Software System)
2006 1,051,237 130,672 1,068,459 2,226,982 441,635 74,219 (174,222) 326,618 1,900,364
11.2.3 (23,386) (15,014)
(Rupees in ‘000)
Tangible
Premises on lease
hold land 634,473 27,423 659,127 167,395 23,634 190,179 468,948 5
(2,769) (850)
Furniture and fixture 175,218 19,306 184,749 114,247 8,736 116,032 68,717 10 to 33.33
(9,775) (6,951)
Computer equipments 106,518 6,763 113,281 90,871 7,018 97,889 15,392 25
Vehicles 83,927 43,020 94,080 53,148 11,304 37,535 56,545 20
(32,867) (26,917)
2005 1,000,136 96,512 1,051,237 425,661 50,692 441,635 609,602
(45,411) (34,718)
11.2.1 Previously the break-up of land and buildings as separate categories of fixed assets had not been
given, as in many cases cost of land had been merged with the cost of building at the time of purchase.
During the current year a detailed exercise was conducted by Sadruddin Associates (Pvt.) Limited
(independent valuer) to determine the cost of land. Based on the report of the valuation consultants,
the value of land has been transferred from the land and buildings category and is being shown
separately
Had there been no revaluation the carrying amount of land and building would have been
Rs. 512.139 million. Due to non-availability of breakup of land and buildings before revaluation,
separate disclosure of carrying amount of these land and buildings can not be given.
11.2.3 Details of disposals of fixed assets
Description Cost Accumulated WDV Sale Gain / Mode of Name of purchaser
depreciation proceeds loss disposal
Vehicles Rupees in ‘000
1 Toyota Corolla 557 557 – 375 375 Quotations Mr. Adnan Bhatti
2 Toyota Corolla 679 679 – 450 450 Quotations Mr. Adnan Bhatti
3 Suzuki Swift 363 363 – 155 155 Quotations Mr. Adnan Bhatti
4 Toyota Corolla 609 609 – 360 360 Quotations Mr. Adnan Bhatti
5 Honda Civic 723 723 – 450 450 Negotiation Insurance Claim Recovered
6 Honda Civic 828 828 – 238 238 Negotiation Ch. Nazir Ahmed (EVP)
7 Toyota Corolla 602 602 – 275 275 Negotiation Mr. Ajmal Khan (VP)
8 Toyota Corolla 602 602 – 275 275 Quotations Mr. Moin ul Haq
9 Suzuki Khyber 365 365 – 160 160 Quotations Mr. Ahmed Bhatti
10 Yamaha 100 48 48 – 13 13 Quotations Mr. Mohammad Iqbal
11 Vespa Scooter 60 60 – 10 10 Quotations Mr. Mohammad Iqbal
12 Vespa Scooter 63 63 – 8 8 Quotations Mr. Mohammad Iqbal
13 Vespa Scooter 61 61 – 9 9 Quotations Mr. Mohammad Iqbal
14 Honda Civic 858 858 – 425 425 Quotations Mr. Adnan Bhatti
15 Toyota Corolla 619 619 – 450 450 Quotations Mr. Iqbal Saleem
16 Suzuki Baleno 749 524 225 280 55 Quotations Mr. Ajmal Kanju
17 Honda Civic 1,255 1,255 – 390 390 Quotations Mr. Adnan Bhatti
18 Toyota Corolla 679 679 – 500 500 Quotations Mr. Iqbal Saleem
19 Mercedez Benz 4,400 1,100 3,300 3,550 250 Quotations Mr. Bahauddin Khan
20 Suzuki Swift 205 205 – 85 85 Quotations Mr. Masood Ahmed
21 Toyota Land Cruiser 3,689 308 3,381 3,125 (256) Quotations Mr. Shshid Mian
11.2.4 The land and buildings currently in use of the bank include certain properties that have been
acquired in satisfaction of claims. The carrying amount of these properties as at December 31,
2006 amounted to Rs. 53.57 million.
11.3 Intangible assets
COST AMORTISATION Book value Rate of
Balance Additions/ Balance Balance Amortisation/ Balance
as at Jan (Deletions) as at Dec as at Jan Impairment as at Dec at closing amortization
01, 2006 31, 2006 01, 2006 31, 2006 Dec 31, 2006 %
Rupees in ‘000
13.1 This balance has been arrived at after adjusting mark-up in suspense accounts of Rs. 209.479 million
(2005: Rs. 175.480 million)
13.2 This includes the mark-up accrued on related parties transaction amounting to Rs.0.637 million
(2005: Rs.0.502 million)
13.3 Provision against other assets
Opening balance 5,714 714
Charge for the year 1,000 5,000
Reversals – –
Amount Written off – –
Closing balance 6,714 5,714
15. BORROWINGS
In Pakistan 15.1 1,624,470 1,339,662
Outside Pakistan – –
1,624,470 1,339,662
15.3 The Bank has entered into agreement with the State Bank of Pakistan (SBP) for extending export re-
finance to customers. As per the terms of the agreement, the Bank has granted the SBP the right to recover
the outstanding amount from the Bank at the date of maturity by directly debiting the current account
maintained with the SBP. The effective mark-up rate ranges from 6.50% to 7.50% (2005: 3.50% to
7.50%) payable on quarterly basis.
15.4 The Bank has entered into agreement with the State Bank of Pakistan (SBP) for extending LTF-EOP to
customers. As per the terms of the agreement, the Bank has granted the SBP the right to recover the
outstanding amount from the Bank at the date of maturity by directly debiting the current account maintained
with the SBP. The effective mark-up rate is 5.00% per annum (2005: 5.00%) payable on quarterly basis.
These LTF-EOP have the maturity of 7 years and 6 months from the date of contract with the SBP.
15.5 This represents foreign currency borrowings aggregating USD 1,000,000 (2005: USD 800,000) carrying
mark-up of 6.00 % per annum payable on maturity (2005: 3.80 % to 4.20 %), having maturities upto
June 30, 2007.
16. DEPOSITS AND OTHER ACCOUNTS 2006 2005
Note Rupees in ‘000
Customers
Fixed deposits 4,476,246 2,292,893
Savings deposits 7,047,793 5,006,692
Non-remunerative
Current Accounts 4,476,836 5,122,419
Call deposits 179,710 200,947
Margin Accounts 343,641 209,814
16,524,226 12,832,765
Financial institutions
Remunerative deposits 2,645,000 23,850
Non-remunerative deposits – –
2,645,000 23,850
19,169,226 12,856,615
16.1.1 The above includes deposits of related parties amounting to Rs.31.128 million. ( 2005 : 28.325 million)
17.1 This represents the excise duty payable on services provided by the Bank for the month of December
2006 under section 40A of Federal Excise Act 2005, relating to special procedures for collection of
excise duty.
During the year paid-up capital was raised through right issue offering 50 shares (2005: 35 shares)
for every 100 shares held at face value of Rs. 10 each.
1,137,067 58,106
19.1 The Bank's properties were revalued by an independent professional valuer as on June 30, 2006, on the
basis of current market value. The revaluation has resulted in surplus on revaluation of fixed assets of
Rs. 1,242.681 million.
2006 2005
Rupees in ‘000
20 CONTINGENCIES AND COMMITMENTS
Guarantees include Rs 1.685 million issued in favor of Collector of Custom on behalf of MGM Corporation
(a related party) expired on January 8, 2004 against which Collector of Custom has lodged a claim with
the Bank on June 16, 2004. MGM has filed a suit against the said order and obtained a stay from the
Honourable High Court of Sindh and the matter is subjudicated at present.
20.4 Taxation
Return filed by the Bank for tax year 2006 (Financial year 2005) has been assessed under the
self assessment scheme envisaged in section 120 of the Income Tax Ordinance, 2001. In respect of
assessment years 1999-2000 and 2002-2003, the bank has preferred appeal against various disallowances
by tax department with tax impact of Rs. 3.397 million. While finalizing assessments for the tax years
2003, 2004 and 2005, the taxation officer has issued notice u/s 122(5A) of the Income Tax Ordinance,
2001, intending to disallow certain deductions and raised a demand of Rs.149.217 million. The Bank
has appealed before the Commissioner of Income Tax (Appeals), where matter is pending disposal.
Further, the bank has preferred appeals before various appellate forums of Azad Jammu and Kashmir,
where the matter is pending disposal, regarding excessive assessments on account of profits relating to
Azad Jammu and Kashmir branches for the assessment years 2000-2001, 2001-2002, 2002-2003, and
tax year 2003 and 2004 against creation of tax demand aggregating Rs.50.106 million. No provision
has been made in the financial statements, as the management is confident about favorable outcome
of the above matters.
20.5 Other Contingencies
In the year 2004, forward purchase of Pakistan Investment Bonds (PIB's) with face value of Rs. 250
million was entered into with Speedway Fondmetall (Private) Limited (Speedway). The deal was not
honoured by Speedway on the due date and the contract was rolled over subject to receipt of Rs. 6
million and mortgage of properties. Consequent upon the failure by Speedway to honour the terms of
the contract, the Bank served a final notice intimating to settle the deal within stipulated time otherwise
the Bank will liquidate the deal, and claim the loss on deal by taking legal recourse. In response,
Speedway filed a suit against the Bank and obtained stay from Honorable High Court of Sindh against
the sale of PIB's which was vacated by the High Court during the year 2005.
The Bank started proceeding during the period to recover the loss on the deal by disposing off the mortgaged
properties. However, Speedway filed another suit and obtained stay from the court against the sale of the
properties mortgaged with the Bank, which was also dismissed as withdrawn by Speedway. Speedway filed
third suit in the Banking Court No.2 against publication by which the mortgage properties were put to sale.
The Bank has also filed recovery suit of the Speedway in the Honourable High Court of Sindh. Subsequently
the bank moved an application for transfer of the suit filed by the Speedway in Banking Court No. 2 to
the Honourable High Court of Sindh, so that the two suits are heard together in the apex Court. In this
regard a provision of Rs. 6 million (Note 13.3) has been kept in the financial statements as a matter of
prudence against the claim receivable of Rs. 26 million. Management is confident about the favourable
outcome of the case.
2006 2005
Rupees in ‘000
21.1 This includes mark-up earned on advances to associated undertakings of Rs. 2.090 million
(2005: Rs 1.375 million).
21.2 This balance has been arrived at after adjusting amortization of PIBs of Rs. 13.415 million
(2005: Rs 15.024 million).
2006 2005
Rupees in ‘000
22. Mark-up / Return / Interest expensed
Deposits 816,430 265,049
Securities sold under re-purchase agreements 1,670 6,579
Other short term borrowings 27,237 31,699
Borrowing from the State Bank of Pakistan 20,331 19,243
865,668 322,570
27. TAXATION
For the year
Current 126,085 38,827
Deferred 4,087 (102,268)
130,172 (63,441)
For the prior year(s)
Current – 39
Deferred – –
– 39
130,172 (63,402)
Fees – – 637 –
Managerial remuneration 6,901 6,642 – – 34,001 7,467
Contribution to defined contribution plan – – – – 29,343 622
Rent and house maintenance 1,263 – – – 15,301 3,360
Utilities – – – – 3,259 848
Medical 281 177 – – 2,720 475
Conveyance 314 282 – – 13,445 1,631
Others 183 699 – – 9,088 2,310
8,942 7,800 637 – 107,157 16,713
Number of persons 1 1 7 7 71 8
The Chief Executive and Executives are provided with free use of Bank’s maintained cars. Executive means
employees, other then the Chief Executive Officer and directors, whose basic salary exceeds five hundred
thousand in a financial year.
Liabilities
Bills payable 225,322 225,322 266,152 266,152
Borrowings 1,624,470 1,624,470 1,339,662 1,339,662
Deposits and other accounts 19,169,226 19,169,226 12,856,615 12,856,615
Sub-ordinated loans – – – –
Sub-ordinated loans – – – –
Other liabilities 231,248 231,248 123,844 123,844
21,250,266 21,250,266 14,586,273 14,586,273
Investment in quoted shares and government securities are valued at market prices taken from Stock
Exchange quotations and Reuters (PKRV) page. Fair value of investments in unquoted shares have been
estimated using the net assets value based on latest available financial statements.
Fair value of loans and advances can not be determined with reasonable accuracy as there is no active
market. Loans and advances are re-priced frequently on market rates. The provision for impairment of
advances has been accounted for in accordance with the Bank's accounting policy as stated in note 5.4.
Fair value of all other assets and liabilities including deposits and capital / reserves cannot be calculated
with reasonable accuracy as active market does not exist for these instruments. Most of the deposits are
short term in nature. In management's opinion fair value of these instruments does not significantly differ
from their carrying values.
2006
Segment Return on net Assets (ROA) (%) 5.43% 5.69% 0.01% 2.37% – – – – –
2005
Segment Return on net Assets (ROA) (%) 4.48% 2.68% 0.34% 0.37% – – – – –
Advances for house building, conveyance for personal use have also been provided to the staff and
executives at the reduced rates in accordance with the employment and pay policy.
Detail of transactions with related parties and balances with them as at the year ended were as follows:
Advances
Advances at the beginning of the year – – 14,340 7,477 58,964 9,404
Advances disbursed during the year – – 39,992 43,511 5,211 64,982
Advances repaid during the year – – (34,332) (36,648) (10,098) (15,422)
Advances at the end of year – – 20,000 14,340 54,077 58,964
Market Risk
General market risk 126,488 2,275
Specific market Risk 839,813 472,663
Market risk-weighted exposures 966,301 474,938
Total Risk-Weighted exposures (b) 23,375,471 13,392,836
2006 2005
Rupees in ‘000
Specific Specific
Classified Provisions Classified Provisions
Advances Held Advances Held
Agriculture, Forestry, Hunting and Fishing 68,810 17,672 70,453 10,015
Mining and Quarrying – –
Textile 388,393 158,031 451,089 149,994
Chemical and Pharmaceuticals 25,251 10,274 24,453 8,131
Cement – –
Sugar – 18,785 6,246
Footwear and Leather garments 11,079 4,508 10,903 3,625
Automobile and transportation equipment 2,987 1,215 7,841 2,607
Electronics and electrical appliances – – – –
Construction – – – –
Power (electricity), Gas, Water, Sanitary – – – –
Wholesale and Retail Trade 53,071 21,594 309,885 103,041
Exports/Imports – – – –
Transport, Storage and Communication – – – –
Financial – – – –
Insurance – – – –
Services 10,000 4,069 – –
Individuals 9,259 6,570 43,727 4,660
Others 442,170 179,911 376,101 125,060
1,011,020 403,844 1,313,237 413,379
Currency risk arises where the value of financial instrument changes due to changes in foreign exchange rates. In
order to manage currency risk exposure the bank enters into ready, spot and forward transactions with the SBP and
in the inter bank market.
The bank’s foreign exchange exposure comprises of forward contracts, purchases of foreign bills, foreign currencies
cash in hand, balances with banks abroad, foreign placements with SBP and foreign currencies assets and liabilities.
The net open position is managed within the statutory limits, as fixed by the SBP. Counter-parties limits are also
fixed to limit risk concentration. Appropriate segregation of duties exist between the front and back office functions
while compliance with the net open position limit is independently monitored on an ongoing basis.
Assets
Cash and balances with treasury banks 4.35% 1,990,052 25,519 - - - - - - - - 1,964,533
Balances with other banks 12.75% 1,222,089 5,968 500,000 - - - - - - - 716,121
Lending to financial institutions 8.91% 4,030,887 2,760,227 1,270,660 - - - - - - - -
Investments 10.10% 2,961,220 - 843,574 10,166 185,286 50,996 75,643 90,283 619,515 - 1,085,757
Advances 9.92% 13,486,839 2,021,208 3,106,917 3,493,865 3,732,534 351,084 60,796 - 48,263 64,996 607,176
Other assets 369,318 - - - - - - - - - 369,318
24,060,405 4,812,922 5,721,151 3,504,031 3,917,820 402,080 136,439 90,283 667,778 64,996 4,742,905
Liabilities
On-balance sheet gap 2,810,139 2,521,905 459,481 388,387 (51,839) 12,470 17,536 90,283 20,772 64,996 (713,852)
Total Yield/Interest Risk Sensitivity Gap 5,550,401 711,630 388,387 (51,839) 12,470 17,536 90,283 20,772 64,996 (713,852)
Cumulative Yield/Interest Risk Sensitivity Gap 5,550,401 6,262,031 6,650,418 6,598,579 6,611,049 6,628,585 6,718,868 6,739,640 6,804,636 6,090,784
26,549,480 8,237,648 5,812,322 3,504,031 4,602,785 533,667 136,439 718,266 1,070,819 1,933,503
Liabilities
Net assets 5,065,634 497,164 549,231 388,387 393,677 144,057 17,536 718,266 423,813 1,933,503
5,065,634
Where an asset or a liability does not have a contractual maturity date, the period in which these are assumed to mature have been taken as expected date of maturity.
1 Universal Plastic Industries Muno Yousuf 135-55-581735 House No, 3092. Mohallah 25,886 4,446 - 30,332 25,886 4,446 - 30,332
Sethyan, Dak Khana, Chowk
Yadgar, Peshawar
2 Knit Knot (Pvt) Ltd Hafeezullah Khan Niazi S/o House No, 41- 42, Civic Center, 622 57 - 679 622 57 - 679
Zafar Khan Garden Town Lahore
3 Al Aslam International M. Aslam Mian S/o M. Azam 42301-1919397-3 60 / 11. Lane 24, Khayaban-e- 2,054 - - 2,054 1,554 - - 1,554
Mian Badban DHA Phase VII Khi
4 Sultan Muhammad S/o Hazrat Gull 129-80-621077 Mohalla Sherdil Khan P.O. 744 89 - 833 744 89 - 833
Mangan District Mardan
5 Sartaj Hussain S/o Master Hussain 42301-2851841-5 H.No D- 60 T.N.T Colony 744 89 - 833 744 89 - 833
Queens Road Tower Karachi
6 Haider Zaman Khan S/o Mir Zaman Khan 130-43-061866 Sarhad Ciggrate Industries 744 89 - 833 744 89 - 833
Nawab Kazzi District Maradan
7 Syed Riffat Shah Gilani S/o Shah Gilani 225-54-042479 R-135 Pak Kausar Town 744 89 - 833 744 89 - 833
Kokhrapar Maolir Karachi
8 Riasat Ali S/o Charag Ali 516-24-155001 74 M Block 6 P.E.C.H.S Karachi 744 89 - 833 744 89 - 833
9 Ahed Rab S/o Fazal Rab 502-48-012310 C-455 Nazimabad No 3 744 89 - 833 744 89 - 833
Karachi
10 Muhammad Siddiq Palkio S/o Allah Bux Khan Palkio 470-33-158322 M.K Chandni House,Moti 744 89 - 833 744 89 - 833
Bazaar Nawabshah
11 Roman Khalid Shaikh S/o Shaikh Muhammad Yunus 136-63-002635 H.No 506 Street No 15, Sector 744 89 - 833 744 89 - 833
E-2 Hayatabad Peshawar
12 Asad Khan S/o Abdul Waheed 128-90-086545 Village Shah Baig Post Office 744 89 - 833 744 89 - 833
Ibrahim Khan Dist Mardan
13 Rab International S/o Gul-Rab 501-59-396701 Room No 10 / 10A Arkay 744 89 - 833 744 89 - 833
Square Shahrah-e-Liaquat
Karachi
14 Muhammad Aslam S/o Sanaullah 501-39-230670 2/19 C-1 Liaquatabad Karachi 744 89 - 833 744 89 - 833
15 Khalid Abid M. Shah S/o Syed Ezad Mukhtar Shah 510-53-046504 A-122, block C-3 Haroon Royal 744 89 - 833 744 89 - 833
City Phase III Gulistan-e-Johur
Karachi
16 Azeem Gul S/o Gul-Rab 501-59-396701 H.No U / 55 Sector G 744 89 - 833 744 89 - 833
Nazimabad Karachi
17 Nazia Muhammad Aslam S/o Muhammad Aslam 42101-13510596-2 H.No A/25, C-1 Area 744 89 - 833 744 89 - 833
Liaquatabad Karachi
18 Shahid Hafiz Khuaja S/o Abdul Hafeez Khuaja 502-88-20117 D-60 Block 8 Gulshan-e-Iqbal 744 89 - 833 744 89 - 833
22 Subika Enterprises Shaikh Waseem Riaz 502-81-258822 Imperial Hotel Building, 6,316 1,713 - 8,029 2,440 1,713 - 4,153
M.T.Khan Road
58,460 13,479 - 71,939 49,083 13,479 - 62,562
Operating expenses
– Administrative expenses 612 539 403 374 382 310
Profit / (loss)
– Profit before tax and provision 661 413 117 143 75 44
against NPLs
– Profit before taxation 623 211 87 6 25 10
BALANCE SHEET
Shareholders’ equity
– Paid-up capital 3,086 2,057 1,524 1,016 1,016 508
– Reserve 843 434 160 76 97 93
Total Equity 3,929 2,491 1,684 1,092 1,113 601
Total assets 26,549 17,219 13,436 11,759 10,595 8,444
Advances - net of provision 13,487 9,294 7,245 5,853 3,298 3,002
Investments 2,961 3,253 1,937 1,929 1,328 630
Deposits
– Remunerative 14168 7,323 4,388 4,161 3,768 3,569
– Non - remunerative 5,001 5,533 6,535 4,845 3,993 3,116
• Mr. Muhammad Humayun Nabi Jan(Director) resigned from the Board of Directors and Mr. Afzal Ghani
(Director) was co-opted in his place in August, 2006 in the 97th meeting of the Board of Directors.
• Mr. Muhammad Azimuddin,President & CEO resigned from his office in 26th April, 2006 and completed
his notice period,after that Mr. Muhammad Bilal Sheikh was designated as the new President & CEO in
the 97th Meeting of Board of Directors.
D) Others
E) Shares traded by Directors, CEO, CFO, Company Secretary and their spouse and minor children
are given as under:
No. of Shares
Acquired/Purchased Remarks
F) Shareholders holding ten percent and above. (Other than sponsors and Directors)
Shares Held %
Head Office
1 Regal Chowk, Jinnah Road, Quetta 081 2827057 2825065 jrq@mybankltd.com
(Registered Office)
10th Floor, Business & Finance Centre, UAN 2433623
2 Central Office Opp: State Bank of Pakistan, 021 finance@mybankltd.com
111-692-265 2444197
I.I. Chundrigar Road, Karachi.
Regional Office Pearl Heaven Apartments, Khayaban-e-Roomi,
3 021 5824381-2 5824383 rokhia@mybankltd.com
Karachi Block-5, Clifton, Karachi.
BRANCHES
S. City Telephone
No. Name Address Fax No. E-mail Addresses
Code No.
3 Jodia Bazar Branch Ram Bharti Street, Ismail Trade Centre, Karachi. 021 2437991-3 2437994 jbk@mybankltd.com
9 Paper Market Al-Abbas Centre, Paper Market, 021 2639671-2 2639670 pmk@mybankltd.com
Branch Shahrah-e-Liaquat, Karachi.
24 Azam Cloth Market F-1208, Azam Cloth Market, Lahore. 042 7667297 7662026 acm@mybankltd.com
Branch 7651374
2274001-2
26 ISLAMABAD 20-Al Asghar Plaza, Blue Area, Islamabad. 051 2823204, 2875066 2274276 isd@mybankltd.com
Blue Area Branch 2872913
27 Bharah Koh Branch Muree Road, Tehsil / District Islamabad. 051 2231344 2231345 bkh@mybankltd.com
RAWALPINDI
28 Saddar Bazar, Rawalpindi Cantt. 051 5523840-41 5523837 rwp@mybankltd.com
Bank Road Branch
5534173
29 Raja Bazar Branch Raja Bazar, Rawalpindi. 051 5557244 5559544 rbp@mybankltd.com
QUETTA
30 Regal Chowk, Jinnah Road, Quetta. 081 2837028-29 2825065 jrq@mybankltd.com
Jinnah Road Branch
MARDAN
46 Bank Road, Mardan. 09378 65341 65342 mrd@mybankltd.com
Bank Road Branch
RAHIMYAR KHAN
47 Rahimyar Khan Shahi Road, Rahimyar Khan. 06858 83876 76776 ryk@mybankltd.com
Branch
TURBAT
48 Main Bazar, Turbat. 0852 413874 414048 turb@mybankltd.com
Main Bazar Branch
AZAD JAMMU &
49 KASHMIR Nangi Chowk, Mirpur, Azad Kashmir. 058610 44550 44522 mak@mybankltd.com
Nangi Chowk Branch
50 Dadyal Branch Maqbool Butt Shaheed Chowk, 058630 42475 42475 dad@mybankltd.com
Dadyal, Azad Kashmir.
I / We_________________________________________of__________________________________________________
being member of mybank Limited and holding ______________________________________ordinary shares are per
my / our Proxy in my / our absence to attend and vote for me / us and on my / our behalf at the Annual General
Meeting of the Bank to be held on March 30, 2007 and at any adjournment there-of.
1. Witness_____________________________
Signature____________________________
CNIC No.___________________________
Member's Signature
Address_____________________________ on Rs.5.00
Revenue Stamp
2. Witness_____________________________
(Signature should agree with
Signature____________________________
the specimen signature
CNIC No.___________________________ registered with the Bank)
Address_____________________________
NOTES:
1. A member entitled to attend and vote at the Annual General Meeting of the Bank may appoint another member
as his / her proxy to attend and vote instead of him / her. The proxy shall have the right to attend, speak and
vote in place of the member appointed him at the meeting.
2. The instrument appointing a proxy should be signed by the member(s) or by his / her Attorney, duly authorized
in writing. If the member is a Corporation, its common seal should be affixed to the instrument.
3. The Proxy Form duly completed, must be deposited at the Bank’s Registered Office at mybank Building, Regal
Chowk, Jinnah Road, Quetta not less than 48 hours before the time of holding the meeting.
4. CDC account holder or sub-account holder appointing a proxy should furnish attested copies of his / her own
as well as the proxy’s CNIC / Passport with the proxy form. The proxy shall also produce his / her original CNIC
or passport at the time of meeting. In case of corporate entity, the Board of Directors’ resolution / power of
attorney with specimen signature shall be submitted along with proxy form.