Al-Arafah Islami Bank: Financial Statements - 2Q 2017

Transcription

1. Half-Yearly (2 Quarter) Financial Statement 2017 nd (un-audited) Consolidated Balance Sheet As at June 30, 2017 PROPERTY AND ASSETS 31-12-16 Taka 2,771,542,674 31,788,886,024 34,560,428,698 2,033,960,977 30,853,508,125 32,887,469,102 1,465,892,094 9,846,226,826 11,312,118,920 1,500,000,000 7,563,902,769 5,500,000,000 2,063,902,769 3,426,434,934 5,703,406,904 9,129,841,838 3,333,450,160 9,158,676,294 6,990,000,000 2,168,676,294 202,740,726,236 20,255,136,175 222,995,862,411 3,282,199,803 21,832,575,063 303,047,087,664 180,155,243,596 16,364,134,345 196,519,377,941 3,240,185,718 18,631,047,423 272,900,048,477 30,538,832,180 25,084,653,806 28,732,481,837 117,839,749,704 47,446,331,052 25,067,443,400 2,627,448,929 221,713,454,922 27,004,303,052 79,297,980 279,335,888,134 3,000,000,000 26,053,949,961 104,981,785,080 46,027,267,857 20,693,095,761 1,947,821,349 199,703,920,008 23,698,530,129 75,456,597 248,562,560,539 3,000,000,000 Paid -up Capital Statutory Reserve Revaluation Reserve Retained Earnings Total Equity attributable to equity holders of the bank Non-Controlling Interest Total Equity Total Liability and Share holders equity Contingent Liabilities 9,943,064,280 6,921,969,723 980,007,429 969,727,691 18,814,769,123 1,896,430,406 20,711,199,529 303,047,087,664 9,943,064,280 6,490,088,540 978,069,978 2,199,578,985 19,610,801,783 1,726,686,152 21,337,487,935 272,900,048,477 Acceptance and endorsement Letters of Guarantee Letters of Credit Bills for Collection Other Contingent Liabilities Total Other Commitments : Documentary Credits and other short term trade related transactions Forward Assets Purchased and forward Deposit placed Undraw note issuance and Revolving underwriting Facilities Undraw Formal standing Facilities, Credit lines and others commitments 8,754,564,951 6,256,666,090 35,315,318,659 4,705,277,796 55,031,827,496 10,243,938,166 4,981,342,733 26,110,933,527 3,652,427,592 44,988,642,018 - - Total Off Balance sheet items including Contingent liabilities 55,031,827,496 44,988,642,018 Placement with Banks & Other Financial Institutions Investment in Share & Securities Government Others Investments General Investments etc. Bills purchased and discounted Fixed assets less Accumulated Depreciation Other Assets Non-Banking Assets Total Assets LIABILITIES AND CAPITAL Liabilities Placement from Banks & Other Financial Institutions Deposits and other Accounts Mudaraba Savings Deposits Mudaraba Term Deposits Other Mudaraba Deposits Al-wadeeah Current Accounts and Other Accounts etc. Bills Payable Other Liabilities Deferred tax Liabilities/ (Assets) Total Liabilities AIBL Subordinate Bond Capital/Share holders Equity Chief Financial Officer Company Secretary - Managing Director Director Consolidated Cash Flow Statement For the half year ended June 30, 2017 For the half year ended June 30, 2017 01-01-16 to 30-06-16 Taka 01-01-17 to 30-06-17 Taka 30-06-17 Taka Cash in hand Cash in hand (including foreign currencies) Balance with Bangladesh Bank and its Agents Banks (including foreign currencies) Balance with other Banks and Financial Institutions In Bangladesh Outside Bangladesh Consolidated Profit & Loss Accounts Chairman Investment Income 10,119,649,496 Profit paid on deposits & Borrowing (5,572,109,256) Net Investment Income 4,547,540,240 Income from Investment in Shares /Securities 207,063,312 Commission, Exchange and Brokerage 1,407,622,024 Other Operating Income 140,155,632 1,754,840,968 Total operating income 6,302,381,208 Salaries and allowances & contribution to P.F Directors fees & expenses Shariah Supervisory Committee's fees & expenses Rent, taxes, insurance and lighting etc. Postage, telegram, telephone and stamp etc. Legal charges Auditors' fee Salary & Allowances to the Managing Director Depreciation and repairs to the bank's properties Stationery, printing & advertisement etc. Other expenses Total operating expenses Profit/(Loss) before Tax & provision Provision against Investments & Contingent Liabilities Provision for diminution in value of investment Other Provision Total provision Profit/(Loss) before Tax Current tax Deferred tax Provision for Taxation Net Profit/(Loss) after tax Net Profit attributable to: Equity holders of the bank Non-controlling Interest Profit for the year Appropriation Statutory Reserve Non-Controlling Interest 1,552,832,508 8,410,438 317,377 277,571,188 49,132,629 3,786,492 216,500 9,284,000 171,975,271 75,660,641 310,989,552 2,460,176,596 3,842,204,612 1,138,844,423 (56,249,228) 1,082,595,195 2,759,609,417 1,415,381,035 3,841,383 1,419,222,419 1,340,386,998 01-04-16 to 30-06-16 Taka 1,130,171,590 166,552,463 1,296,724,053 486,457,519 56,134,563 542,592,083 165,890,676 88,269,887 254,160,563 431,881,183 149,744,254 581,625,437 758,761,561 1.20 360,563,639 166,552,463 527,116,102 769,607,951 1.14 232,330,555 56,134,563 288,465,118 254,126,964 0.49 83,403,181 88,269,887 171,673,068 82,487,495 0.17 Company Secretary 30-06-17 Taka Cash flows from operating activities Investment income receipt in Cash Profit paid on deposits and borrowing Dividend received Fees & Commission received in cash Recoveries from written off investments Cash payments to employees Cash payments to suppliers Received from other operating activities (item-wise) Paid for other operating activities (item-wise) Advance income tax paid Operating profit before changes in operating assets and liabilities Changing in Operating assets & liabilities Increase/(Decrease) of trading securities Increase/(Decrease) of placement to other banks Increase/(Decrease) of Investment and advances to customers (other than Banks) Increase/(Decrease) of other assets (item-wise) Increase/(Decrease) of placement from other banks and financial institution Increase/(Decrease) of Deposits from customers (other than Banks) Increase/(Decrease) of Other liabilities account of customers Increase/(Decrease) of Trading liabilities (item-wise) Cash receipt from operating activities A. Net Cash from operating activities Cash flows from investing activities: Proceeds from sale of securities Payments for purchases of securities Purchase of property, plant and equipment Sales proceeds of Fixed assets Purchase-sale of subsidiary B. Net cash flows from investing activities Cash flows from financing activities Increase in Exchange Equalization Account Issue of AIBL Subordinate Bond Dividend paid C. Net cash flows from financing activities D. Net increase in cash and cash equivalent (A+B+C) E. Effects of exchange rate changes on cash and cash-equivalents F. Net increase in cash and cash equivalent D+E G. Cash & Cash Equivalents at the beginning of the year H. Cash & Cash Equivalents at the end of the year 9,758,477,563 5,895,159,729 5,731,734,327 (5,387,650,510) (3,484,425,584) (3,481,639,546) 4,370,827,053 2,410,734,145 2,250,094,781 92,897,034 162,276,161 72,666,667 1,109,092,588 715,220,901 518,826,498 128,403,096 76,465,609 90,936,812 1,330,392,718 953,962,671 682,429,977 5,701,219,771 3,364,696,816 2,932,524,758 1,127,157,518 680,968,285 572,141,226 9,607,088 (4,242,107) 6,247,096 108,477 94,921 5,452 239,738,294 181,314,086 155,484,287 44,223,506 27,258,782 31,386,725 7,818,766 2,162,134 5,748,395 113,000 92,000 50,000 6,700,000 3,774,000 3,030,000 146,236,125 85,976,854 75,899,226 56,168,655 34,480,961 30,659,087 233,714,396 200,058,472 127,717,508 1,871,585,825 1,211,938,388 1,008,369,002 3,829,633,946 2,152,758,428 1,924,155,756 1,370,000,000 774,019,423 1,128,538,137 (46,070,325) 929,682 (9,134,896) 1,323,929,675 774,949,105 1,119,403,241 2,505,704,271 1,377,809,323 804,752,515 1,208,980,218 838,974,911 550,591,953 (3,757,671) 1,208,980,218 835,217,240 550,591,953 1,296,724,053 542,592,083 254,160,563 1,190,642,744 149,744,254 1,340,386,998 Transfer to Retained Earnings Earning per Ordinary Share Chief Financial Officer 01-04-17 to 30-06-17 Taka Managing Director Director Chief Financial Officer Chairman Company Secretary 30-06-16 Taka 10,338,218,492 (5,897,472,861) 18,705,470 1,407,622,024 23,139,577 (1,562,116,508) (75,660,641) 140,155,632 (684,099,325) (1,531,800,847) 2,176,691,013 8,554,013,483 (5,387,650,510) 1,689,168 1,109,092,588 1,849,869 (1,133,857,518) (56,168,655) 128,403,096 (565,233,476) (1,095,722,875) 1,556,415,170 104,773,525 1,833,450,160 (28,326,325,122) (1,703,077,523) 5,454,178,374 22,334,898,519 669,496,571 367,394,504 2,544,085,517 (180,314,202) (180,314,202) 34,791,370 (50,000,000) (20,808,029,051) 894,503,507 7,097,383,436 20,785,755,190 44,145,583 7,998,550,035 9,554,965,205 (83,198,619) (83,198,619) 5,284,079 (946,958,503) (941,674,424) 8,530,092,162 8,530,092,162 39,301,635,835 47,831,727,997 1,937,451 1,937,451 2,365,708,766 2,365,708,766 49,006,838,852 51,372,547,618 Managing Director Director Chairman Consolidated Statement of Changes in Equity For the half year ended June 30, 2017 Balance at 1st January, 2017 Changes in accounting policy Off Load share Restated Adjustment Restated balance Surplus/deficit on account of revaluation of properties Surplus/deficit on account of revaluation of investments Currency translation differences recognized in the income Share premium Net profit for the year Bonus Share Cash Dividend Issue of share capital of subsidiary Gain on pre acquisition of subsidiary Revaluation of subsidiary Transferred to retained earning Appropriations during the year Balance as at June 30,2017 Balance as at June 30,2016 Chief Financial Officer Paid up Capital Taka 9,943,064,280 9,943,064,280 9,943,064,280 9,943,064,280 Company Secretary Statutory Reserve Retained Earnings Asset Revaluation Reserve Taka Taka Taka Total Taka 6,490,088,540 - 2,199,578,985 - 978,069,978 - 19,610,801,783 - 6,490,088,540 - 2,199,578,985 978,069,978 1,937,451 19,610,801,783 1,937,451 - 1,190,642,744 (1,988,612,856) 431,881,183 6,921,969,723 5,801,292,342 (431,881,183) 969,727,691 965,157,961 980,007,429 996,874,019 1,190,642,744 (1,988,612,856) 18,814,769,123 17,706,388,602 - Managing Director Non-Controlling Interest Taka 1,726,686,152 20,000,000 1,746,686,152 149,744,254 1,896,430,406 1,884,735,545 Director Total Equity Taka 21,337,487,935 21,337,487,935 1,937,451 1,340,386,998 (1,988,612,856) 20,711,199,529 19,591,124,147 Chairman Notes to the Financial Statements For the half year ended June 30, 2017 1. The Bank and its activities Al-Arafah Islami Bank Limited was established in 1995 under the Companies Act, 1994 as a Banking Company with Limited Liability by shares. It is an interest free Shariah Bank of Bangladesh rendering all types of commercial banking services under the regulation of Bank Companies Act, 1991 (as amended 2013) . The Bank conducts its business on the principles of Musharaka, Bai-Murabaha, Bai-Muazzal and Hire Purchase transactions approved by Bangladesh Bank. Naturally, its modes and operations are substantially different from those of other conventional commercial banks. There is a Shariah Supervisory Committee in the bank who maintains constant vigilance to ensure that the activities of the bank are being conducted on the percepts of Islam. The Shariah Supervisory Committee consists of prominent Ulema, reputed Bankers. The Bank went for public issue of share in the year 1998 and its share are listed with Dhaka Stock Exchance (DSE) and Chaittagong Stock Exchange (CSE). Presently the bank has 146 Branches and 3 (three) Subsidiary Companies. The principal activities of the Bank are to provide a comprehensive range of financial services including commercial banking, consumer banking, trade finance and other related custody and clearing services to the customers following the provisions of Bank Companies Act, 1991 (as amended), Bangladesh Bank’s directives and the principles of Islamic Shariah. 2. Subsidiaries of the Bank Al-Arafah Islami Bank Ltd has three subsidiary companies. The financial statements of these subsidiary companies are included in the consolidated financial statements according to BFRS-10. 2.1 AIBL Capital Market Services Limited Al-Arafah Islami Bank Ltd. owned 60.50% shares of AIBL Capital Market Services Ltd. a subsidiary company of Al-Arafah Islami Bank Limited. AIBL Capital Market Services Ltd. incorporated in Bangladesh on 20 September 2010 as a Public Limited Company. The principal activities of subsidiary company is to provide quality services to the prospective institutional and individual investors in the capital market The main activities and functions of the company include; I. Share trading in Dhaka Stock Market and Chittagong Stock Market. II. Provide Margin facilities to the client. III. Full service depository participant of Central Depository of Bangladesh Ltd. 2.2 AIBL Capital Management Limited Al-Arafah Islami Bank Ltd. owned 98% shares of AIBL Capital Management Limited a subsidiary company of Al-Arafah Islami Bank Limited AIBL Capital Management Limited has been incorporated under the companies act (Act XVIII) of 1994 as a Private limited Company by share on 25th October 2011. The company was entitled to commence the business also from 25th October 2011 with a view to run and manage the operations of Merchant Banking Services with an authorized Capital of BDT 2 billion and paid up capital of BDT 500 million . It aims to be one of the leading Merchant Banks of the country by rendering quality Merchant Banking Services with a high level of professional expertise and integrity. 2.3 Millennium Information Solution Limited Al-Arafah Islami Bank Ltd. owned 51% shares of Millennium Information Solution Limited a subsidiary company of Al-Arafah Islami Bank Limited Millennium Information Solution Limited, a private limited Company was incorporated in Bangladesh under the companies act 1994 on February 11, 2001. The main objective of company is to carry on activities relating to developing software products and providing maintenance and support services both the domestic and international clients. Over the years, MILS has established itself as the leading software developer, implementation and service provisioning company in Bangladesh which adheres to the rules of Islamic Shariah. 3. Basis of preparation and significant accounting policies 3.1 Preparation of financial statements The consolidated financial statements of the group and the financial statements of the bank have been prepared on a going concern basis under the historical cost convention and on Generally Accepted Accounting Principles consistently with those of previous years. Although the operation of the Bank are in strict compliance with the rules of Islamic Shariah, the financial statements have been prepared in accordance with the Bank Companies Act 1991, in particular Banking Regulation and Policy Department (BRPD) circular no.15 (09 November 2009) other Bangladesh Bank circulars, the Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka and Chittagong Stock Exchanges Listing Regulations, other laws and rules applicable in Bangladesh and International Accounting Standard (IAS) and International Financial Reporting Standard (IFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) into Bangladesh Accounting Standard (BAS) and Bangladesh Financial Reporting Standard (BFRS) where relevant to the Bank to the extent that these do not contradict with the applicable statutory provisions and standards issued by the Accounting and Auditing Organization for Islamic Financial Institutions. 3.2 Basis of Consolidation A separate set of records for consolidating the Statements of Affairs and Income & Expenditure Statements of the branches are maintained at the Head Office of the Bank in Dhaka from which the financial statement are dawn up. Subsidiaries are entities controlled by the group. Control exists when the group has the power to govern the financial and operational policies of an entity, so as to obtain economic benefits from its activities. The consolidated financial statements incorporate the financial statements of Al-Arafah Islami Bank Limited and the financial statements of subsidiary companies from the date that control commences until the date that control ceases. The financial statements of such subsidiary companies are incorporated on a line by line basis and the investments held by the bank is eliminated against the corresponding share capital of subsidiaries in the consolidated financial statements. Intra-group balances and transactions, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there are no evidence of impairment. 3.3 Cash flow Statement Cash flow statement is prepared principally in accordance with BAS-7 "Statement of Cash flow " and the cash flow from the operating activities have been presented under direct method as prescribed by the Securities and Exchange Rules 1987 and considering the provision of paragraph is (b) of BAS-7 which provides that enterprise are encouraged to report cash flow from operating activities using the direct method. 3.4 Investments: Investments are stated in the Balance Sheet net of profit receivable/mark-up profit. a) Investment write-off: Investments are normally written off, when there is no realistic prospect of recovery of these amounts in accordance with BRPD Circular No.2 (13 January 2003). A separate Investment Administration and Recovery Department (IARD) have been set up at the Head Office, which monitors investment written off and legal action through the Money Court. These write-offs do not undermine or affect the amount Claimed against the borrower by the bank. The Investment Administration and Recovery Department (IARD) maintain a separate ledger for all individual cases written off by each branch. The IARD follow-up on the recovery efforts of these written off investment and reports to management on a periodic basis. Written off investment are reported to the Credit Information Bureau (CIB) of Bangladesh Bank. b) Investment in shares and securities: All investment in shares are revalued at the year end. Unquoted shares are valued based on book value of the most recent audited financial statement. Provisions are made for any loss arising from diminution in value of investments. c) Investment in subsidiaries: The bank has made investment in subsidiary companies named one AIBL Capital Market Service Ltd Tk. 242.00 crore holding 60.50% shares and the rest of 39.50% shares hold by others, second one named AIBL Capital Management Ltd. Tk. 49.00 crore holding 98.00% shares and the rest of 2.00% shares hold by others and third one Millennium Information Solution Limited Tk. 15.00 crore holding 51.00% shares and the rest of 49.00% shares hold by others. 3.5 Depreciation of Fixed Assets The depreciable amount of an item of Fixed Assets has been allocated on a systematic basis over its useful life. The depreciation method is reflected the pattern in which the asset's economic benefits are consumed by the enterprise. The depreciation charge for each period should be recognized as an expense unless it is included in the carrying amount of another asset. a) Depreciation is charged on monthly basis on straight-line method on all fixed assets at the following rates per annum: Name of Assets Furniture Fixture (Wood) Furniture Fixture (Steel) Computer Computer Accessories Motor Car Machine Equipment & Appliances Books & Library Online Hardware Land Buildings Interior Decoration Rate of Depreciation 10.00% 10.00% 20.00% 20.00% 20.00% 20.00% 10.00% 20.00% nil 2.50% 10.00% Useful Life 10 Years 10 Years 5 Years 5 Years 5 Years 5 Years 10 Years 5 Years N/A 40 Years 10 Years b) On addition of fixed assets depreciation is to be charged from the month of acquisition. Whole month depreciation is to be charged if such assets are acquired in the first half of the month and no depreciation is to be charged if such assets are acquired in the second half of the month. c) On the month of disposal of fixed assets, no depreciation is to be charged. The cost and accumulated depreciation of disposed assets are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the income statement. 3.6 Amortization of Intangible Assets The depreciable amount of an item of Intangible Assets has been allocated on a systematic basis over the best estimated of its useful life. The amortization should commence when the assets is available for use. a) Amortization is charged on monthly basis on straight-line method on all Intangible assets at the following rates per annum: Name of Intangible Assets Online Software Rate of Depreciation Useful life 20.00% 5 Years b) On addition of Intangible assets Amortization is charged from the month of acquisition. Whole month Amortization is charged if such assets are acquired in the first half of the month and no Amortization is charged if such assets are acquired in the second half of the month. c) On the month of disposal of Intangible assets, no Amortization is charged. The cost and accumulated Amortization of disposed assets are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the income statement. 3.7 Provision for taxation a. Current tax Provision for current income tax has been made @ 40.00% as prescribed in the Finance Act 2017 of the profit made by the bank considering taxable add-back of income and disallowance of expenditure in compliance with BAS-12 " Income Taxes". Tax return for the income year 2016 (Assessment year 2017-2018) has been filed but assessment is to be done by the tax authority. b. Deferred tax The bank recognized deferred tax in accordance with the provision of BAS-12. Deferred tax arises due to temporary difference deductible or taxable for the events or transaction recognized in the income statement. A temporary difference is the difference between the tax bases of assets or liability and its carrying amount/reported amount in the financial statement. Deferred tax assets or liability is the amount of income tax payable or recoverable in future period(s) recognized in the current period. The deferred tax assets/expenses does not create a legal liability/recoverability to and from the income tax authority. The bank recognizes deferred tax on 100% specific provision investment which will be written off as per Bangladesh Bank Circulars. 3.8 Non-controlling interest Non-controlling interest is that portion of the profit or loss and net assets of the subsidiaries (AIBL Capital Market Services Limited and AIBL Capital Management Limited) attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent (Al-Arafah Islami Bank Limited). 4. Reporting period: The financial statements cover from 01 January to 30 June, 2017. 5. Consolidated Earnings Per Share (CEPS), (CEPS), (NOCFPS), (NAV) Earnings per share have been calculated in accordance with BAS - 33: “Consolidated Earnings Per Share (CEPS)". 01-01-16 01-04-17 01-04-16 to to to 30-06-16 30-06-17 30-06-16 Taka Taka Taka Consolidated Net profit after tax 1,340,386,998 1,296,724,053 542,592,083 254,160,563 Less : Non-Controlling Interest 166,552,463 56,134,563 88,269,887 149,744,254 Net profit after tax Less : Non-Controlling Interest 1,190,642,744 1,130,171,590 486,457,519 165,890,676 Weighted average number of ordinary shares outstanding 994,306,428 994,306,428 994,306,428 994,306,428 Consolidated earnings per share (CEPS) 1.14 0.17 1.20 0.49 Consolidated Net Operating Cash Flows Per Share (CNOCFPS) 9.61 2.56 Consolidated Net Assets Value Per Share (CNAV Per Share) 17.81 18.92 Particulars 01-01-17 to 30-06-17 Taka 6. Retained Earnings Opening balance beginning of the year Add: Net Profit / (loss) after tax during the year Less : Bonus Share Less : Cash Dividend Paid Less : transfer to Statutory Reserve Closing Balance 30-06-2017 Taka 2,199,578,985 1,190,642,744 (1,988,612,855) (431,881,183) 969,727,691 31-12-2016 Taka 1,615,987,762 3,053,388,813 (946,958,503) (473,479,250) (1,049,359,837) 2,199,578,985 7. Cash and Cash Equivalent at the end of the period 30-06-2017 30-06-2016 Taka Taka Cash in hand 2,771,436,353 1,932,606,497 Balance with Bangladesh Bank & Sonali Bank Ltd. 31,788,886,024 31,343,110,653 Balance with Other Banks 11,312,066,281 7,927,410,938 Bangladesh Government Islamic Investment Bond 5,500,000,000 6,628,599,909 51,372,388,658 47,831,727,997 8. General 1. The financial statements have been prepared in accordance with the formats prescribed under the Banking Companies Act, 1991 and in compliance with the rules of Islamic Law (Shariah) related to the banking business activities. 2. The figures appearing in these accounts have been rounded off to the nearest taka. 3. Wherever necessary previous years’ figures have been rearranged to conform to the current years’ presentation. Note: The Published Half Yearly (2nd Quarter) Financial Statements 2017 can be available in the Web-site of the Bank. The address of the Web-site: www.al-arafahbank.com