Allied Bank: Condensed Interim Financial Statements for the half year ended June 30, 2017

Transcription

1. Condensed Interim Financial Statements for the half year ended June 30 , 2017
3. Contents Corporate Information ............................................................................... 02 Vision, Mission & Core Values................................................................... 03 Director’s Review...................................................................................... 04 Independent Auditors’ Report to the members on Review of Interim Financial Information....................... 12 Unconsolidated Condensed Interim Financial Statements of Allied Bank Limited Unconsolidated Condensed Interim Statement of Financial Position......... 14 Unconsolidated Condensed Interim Profit and Loss Account.................... 15 Unconsolidated Condensed Interim Statement of Comprehensive Income..... 16 Unconsolidated Condensed Interim Statement of Cash Flow.................... 17 Unconsolidated Condensed Interim Statement of Changes in Equity........ 18 Notes to the Unconsolidated Condensed Interim Financial Statements..... 19 Consolidated Condensed Interim Financial Statements of Allied Bank Limited and its Subsidiary Consolidated Condensed Interim Statement of Financial Position............. 34 Consolidated Condensed Interim Profit and Loss Account....................... 35 Consolidated Condensed Interim Statement of Comprehensive Income......... 36 Consolidated Condensed Interim Statement of Cash Flow....................... 37 Consolidated Condensed Interim Statement of Changes in Equity............ 38 Notes to the Consolidated Condensed Interim Financial Statements........ 39 ALLIED BANK 1
4. Corporate Information Board of Directors Auditors Mohammad Naeem Mukhtar (Chairman) KPMG Taseer Hadi & Co. Chartered Accountants Sheikh Mukhtar Ahmad Muhammad Waseem Mukhtar Abdul Aziz Khan Mubashir A. Akhtar Dr. Muhammad Akram Sheikh Zafar Iqbal Tahir Hassan Qureshi Legal Adviser (CEO) Audit Committee of Board Zafar Iqbal Mandviwalla & Zafar Advocates Shares Registrar Technology Trade (Pvt.) Limited Registered & Head Office 3 Tipu Block, New Garden Town Lahore - Pakistan Postal Code 54000 (Chairman) Website & Email Dr. Muhammad Akram Sheikh Mubashir A. Akhtar www.abl.com Human Resource & Remuneration Committee Telephone Number Abdul Aziz Khan (+92-42) 35880043 UAN: 111-225-225 (Chairman) Muhammad Waseem Mukhtar Tahir Hassan Qureshi Company Secretary Muhammad Raffat Shariah Board Mufti Ehsan Waquar Ahmed (Chairman) Mufti Mahmood Ahmad Mufti Muhammad Iftikhar Baig 2 Condensed Interim Financial Statements info@abl.com Social Media Links https://twitter.com/ablpk https://www.facebook.com/alliedbankpk https://www.youtube.com/user/alliedbankltd
5. Vision , Mission & Core Values Vision To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers Mission • To provide value added services to our customers • To provide high tech innovative solutions to meet customers’ requirements • To create sustainable value through growth, efficiency and diversity for all stakeholders • To provide a challenging work environment and reward dedicated team members according to their abilities and performance • To play a proactive role in contributing towards the society Core Values • Integrity • Excellence in Service • High Performance • Innovation and Growth ALLIED BANK 3
6. Director ’s Review Dear Shareholders, On behalf of the Board, we are pleased to present the financial results of Your Bank for the half year ended June 30, 2017. (Rupees in million) Half year ended June 30, Growth 2017 Profit after tax for the year 6,4748,601 (25) Accumulated Profits brought forward Transfer from surplus on revaluation of fixed / non - banking assets – net of tax 2016 46,49041,416 % 12 28 73(62) Profit Available for appropriation 52,99250,090 6 Final cash dividend for the year ended December 31,2016 at Rs. 1.75 per share (2016: Year ended December 31, 2015 at Rs. 1.75 per share) (2,004)(2,004) – Interim cash dividend for the year ending December 31,2017 at Rs. 1.75 per share (2016: Year ended December 31, 2016 at Rs. 1.75 per share) (2,004)(2,004) – Transfer to statutory Reserves Accumulated profits carried forward Earnings Per Share (EPS) (Rs.) (647)(860) (25) 48,33745,222 7 5.657.51 (25) The board is pleased to announce an interim cash dividend of Rs.1.75 per share in addition to first interim cash dividend of Rs. 1.75 per share, which has already been paid. Interim cash dividend for the half year ended June 30, 2017 is Rs.3.50 per share (June 30, 2016: Rs.3.5 per share). Economic Review: According to the IMF, global projections remain stable with GDP growth anticipated at 3.5% and 3.6% in 2017 and 2018 respectively. Amidst this stable performance, risks associated with global growth remain skewed towards downside in medium term, beset with geo-political risks, conflicts in the Middle East and policy uncertainties in United States. Pakistan’s GDP maintained its growth trajectory with increase of 5.3% during FY 201617; against a targeted growth of 5.7%. Agriculture and Large-Scale Manufacturing sectors witnessed a healthy growth of 3.5% and 5.7% respectively against dismal performance of 0.3% and 3.4% respectively in FY 2015-16. Service sector supported by 10.8% growth in finance and insurance sector also registered a healthy growth of 6.0% against the target of 5.7%. Despite Pakistan’s economy crossing the GDP level of US$300 billion, accomplishment of broad based progress on poverty alleviation and growing economic disparities remains elusive. In order to realize a more inclusive growth pattern, policy focus on key areas including fiscal consolidation through broadening of tax base, reduction in burgeoning public sector debt to GDP ratio, expanding the private sector credit to GDP ratio, building of external reserves buffer with focused attention towards curtailment of rising imports, containment of rising circular debt and structural reforms to strengthen overall business climate especially export oriented industries remains imperative. Rising current account deficit alarmingly stretched to US$12.1 billion or 4% of GDP during FY 2016-17 from 1.7% over the previous financial year; primarily attributable to unprecedented trade deficit of US$ 26,885 million during FY 2016-17, up 39% over FY 2015-16. Imports increasing by 19% during FY 2016-17 to US$48,545 million; while exports continued its downward trend for the past four years and fell 1% to reach US$21,660 million during FY 2016-17. 4 Condensed Interim Financial Statements
7. Remittances remained sluggish and declined by 3 % during FY 2016-17 to reach US$19,303 million, further aggravating the adverse balance of payments position. Driven by exogenous factors, this decline was witnessed across major traditional areas in middle eastern countries along with flows from US and UK. On a positive note, Foreign Direct Investment (FDI) increased by 5% during FY 2016-17 to reach US$2,411 million; dominated by Chinese CPEC related inflows during FY 2016-17. Amidst the aforementioned situation, foreign exchange (FX) reserves declined by 7% to reach US$21,402 million at end-June 2017. Continued pressure on Current Account and FX reserves may lead to possible currency depreciation in the medium term. Pakistan’s upgrade to Emerging Market status by MSCI unexpectedly failed to stimulate the PSX; as KSE-100 index after reaching peak of 52,876 points during May’17 dropped to below December 2016 level to close at 46,565 points as at June 30, 2017. During the half year under review, Broad Money (M2) supply grew by 8% while currency in circulation continued to grow alarmingly, increasing by 15% to reach Rs.3,910 billion. Banking industry deposits registered a growth of 7% during first half of the year to reach Rs.11,981 billion at end-June’17. After remaining stagnant for prolonged periods, private sector credit increased by 18% during first six months with overall industry advances increasing to Rs.6,176 billion at end June 2017. Consumer Price Index increased by just 4% year on year (YoY) during June 2017; well within the target of 6%. Accordingly, State Bank of Pakistan maintained Policy Rate at 5.75% during the period under review. Financial Review Your Bank, while adopting prudent strategies, is fully cognizant of the challenging multifaceted business environment. Medium term horizon encompasses continued pressure on spreads, therefore, bottom-line stability remains dependent upon diversification of earning assets mix while ensuring quality Balance Sheet growth, cost optimization, augmenting of fee income and gradual penetration in digital landscape for enhanced customer experience. Under the prevailing challenging market dynamics, the Bank earned interest income of Rs.32,362 million for the half year ended June 30, 2017. Interest cost was contained to Rs.16,068 million down 5% from corresponding period of last year. Resultantly, overall Net Interest Income aggregated to Rs.16,294 million during the period under review. The Bank’s prudent and digital technology based risk management practices and recovery efforts continued to yield positive results with net provision reversal against Non-Performing Advances amounting to Rs.696 million as against provision charge of Rs.180 million in corresponding period of last year; enabling the Bank to post a stable net mark-up income after provision at Rs.16,998 million during the period under review. Fee based and other income for the half year ended June 30, 2017 increased by 3% and aggregated to Rs.2,269 million. Higher income from corporate and investment banking, cash management and commodity operations remained major contributors to fee based income. Dividend income amounted to Rs.1,527 million during the period under review, reflecting the good quality investment portfolio of the Bank. Income from dealing in foreign currencies during the period under review stood at Rs.318 million despite relatively stable PKR to USD parity. While remaining active participant in interbank market, Your Bank realized capital gains of Rs.290 million during the period under review. ALLIED BANK 5
8. Director ’s Review Your Bank’s outreach continued to expand with additional 114 branches since June 2016 to reach 1,165 branches including Islamic banking network of 83 branches at end-June 2017. Simultaneous focus on expansion in digital channels was maintained with an ATM network of strategically located 1,186 ATMs across Pakistan including 221 off-site ATMs. During the quarter, Your Bank formally launched state of the art internet banking platform dedicatedly for corporate customers; offering General Banking, Cash Management and Trade Finance facilities to further augment the alternate delivery channels. The solution offers multilayered log-in and authorization matrix ensuring seamless and secured transaction flow. Despite aforementioned initiatives to expand outreach and continuous investment towards technology and risk management platforms; process automation and cost rationalization initiatives assisted in managing overall administrative expenses growth to just 6% during the half year ended June 30, 2017. Your Bank’s Profit Before Tax and Profit After Tax for the half year ended June 30, 2017 stood at Rs.11,269 million and Rs.6,474 million respectively; translating in to EPS and ROE of Rs.5.65 per share and 17% respectively. The Bank sustained focus on enhanced penetration in quality credit opportunities resulted in an overall increase of 18% in total advances portfolio aggregating at Rs.388,956 million. Resultantly, gross ADR of Your Bank improved to 48% at end-June 2017. The overall investments portfolio of the Bank closed at Rs.547,922 million at end-June 2017. Your Bank’s strategic objective of enhancing deposit base with focus on low cost deposit culminated in growth in non-remunerative current deposits by Rs. 55,717 million or 22% during the quarter ended June 30, 2017 to close at Rs.306 billion. The total deposits also witnessed a growth of 6% to close at Rs.852,583 million during the period under review. Through utilization of digital technology enabled risk management framework, Non-Performing Loans were further curtailed by 5% to Rs.19,444 million from December 2016 balance of Rs.20,432 million. Resultantly, the Bank’s infection and coverage ratio improved to 5% and 93% respectively; remaining significantly better than the end March 2017 industry infection and coverage ratio of 10% and 85% respectively. No FSV benefit has been taken while determining the provision against Non-Performing advances, allowed under BSD Circular No. 01 dated October 21, 2011. Total assets of Your Bank increased by 4% to reach Rs.1,107,830 million as at June 30, 2017. Equity of Your Bank remained robust as reflected by Capital Adequacy Ratio of 22.06% as against statutory requirement of 10.65%; with total equity of Rs.100,132 million. Future Outlook The country’s outlook remains favorable with real GDP growth envisaged at 6% in FY 2017-18; contingent upon timely delivery of energy and infrastructure related projects, fiscal consolidation to resolve revenue shortfalls and rising circular debt along with continued efforts to reduce worsening current account deficit and stabilize security situation. These persistent fiscal pressures, continue to hamper government’s spending on key areas of human and social infrastructure development respectively. Banking sector outlook remains immersed in challenges stemming from low interest rates environment leading to historically low spreads, transactional withholding tax on non-filers of income tax return and re-imposition of super tax of 4% during FY 2017-18. The uptick in private sector credit off-take augurs well for the banking industry, however intense competition for quality credit opportunities along with fine pricing spreads are likely to persist. 6 Condensed Interim Financial Statements
9. Deposit growth is envisaged to remain in line with broad money growth of the country . In order to enhance private sector deposit mix in total industry deposits, implementation of structural reforms and improving tax compliance and administration culture remain critical. Steps towards enhancing the official real estate valuation (DC rates) would also facilitate in reducing the size of undocumented economy. Your Bank’s multi-pronged strategic impetus remains towards accomplishing steady performance under the challenging business environment by augmenting outreach and alternate delivery channels, expanding Digital Banking products and services suite, enrichment of robust risk management framework and process automations; to cater for the needs of under-banked and un-banked population of the country. Your Bank’s focus for growth shall remain on enhancing proportion of low cost deposits in overall deposit mix. New business avenues including offering of Bancassurance and selective Consumer Banking products shall also gradually contribute in improving revenue streams. Organic growth in Islamic Banking segment through cautious network expansion shall also enable Your Bank to capitalize on opportunities as they arise in this niche segment. Entity Ratings Allied Bank has long-term and short-term entity ratings of AA+ (Double A plus) and A1+ (A One Plus), respectively, assigned by The Pakistan Credit Rating Agency (PACRA). The ratings represent very high credit quality. Corporate Governance Your Bank’s Corporate Governance rating was maintained at “CGR9+” assigned by JCR-VIS, indicating a high level of corporate governance. Acknowledgement On behalf of Allied Bank, we would like to extend our gratitude to our valued customers for choosing Allied Bank for their banking needs, shareholders for their support, worthy employees for their dedication and State Bank of Pakistan, Securities and Exchange Commission and other regulatory bodies for their guidance and encouragement. For and on behalf of the Board, Tahir Hassan Qureshi Chief Executive Officer Date: August 17, 2017 Place: Lahore ALLIED BANK 7
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14. KPMG Taseer Hadi & Co. Chartered Accountants 2nd Floor, Servis House, 2 - Main Gulberg Jail Road, Lahore, Pakistan. Independent Auditors’ Report to the members on Review of Interim Financial Information Introduction We have reviewed the accompanying unconsolidated condensed interim statement of financial position of Allied Bank Limited (“the Bank”) as at 30 June 2017, and the related unconsolidated condensed interim profit and loss account, unconsolidated condensed interim statement of comprehensive income, unconsolidated condensed interim statement of changes in equity, unconsolidated condensed interim statement of cash flows and explanatory notes (here-in-after referred to as “interim financial information”) for the six months period then ended. Management is responsible for the preparation and presentation of the interim financial information in accordance with approved accounting standards applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information as of and for the six months period ended 30 June 2017 is not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan for interim financial reporting. Other matter The figures for the unconsolidated condensed interim profit and loss account and unconsolidated condensed interim statement of comprehensive income for the quarters ended 30 June 2017 and 30 June 2016 have not been reviewed and we do not express a conclusion on them. Date: August 17, 2017 Place: Lahore 12 Condensed Interim Financial Statements KPMG Taseer Hadi & Co. Chartered Accountants Kamran I. Yousafi
15. Unconsolidated Condensed Interim Financial Statements ALLIED BANK LIMITED for the half year ended June 30 , 2017 ALLIED BANK 13
16. Unconsolidated Condensed Interim Statement of Financial Position as at June 30 , 2017 Note Un-audited Audited June 30, December 31, 2017 2016 Rupees in ‘000 ASSETS Cash and balances with treasury banks 89,227,358 73,203,717 Balances with other banks 1,473,539 679,923 Lendings to financial institutions 6 12,394,485 10,512,752 Investments7 547,922,654 589,864,548 Advances8 388,956,301 329,562,191 Operating fixed assets 33,525,552 32,757,221 Deferred tax assets – – Other assets 34,330,258 32,365,396 1,107,830,147 1,068,945,748 LIABILITIES Bills payable 7,267,258 9,848,795 Borrowings 9 121,008,196 126,368,875 Deposits and other accounts 10 852,583,356 805,110,834 Sub-ordinated loans – – Liabilities against assets subject to finance lease – – Deferred tax liabilities 9,100,904 10,986,887 Other liabilities 17,738,709 15,956,529 1,007,698,423 968,271,920 100,131,724 100,673,828 NET ASSETS REPRESENTED BY Share capital 11 11,450,739 11,450,739 Reserves 17,186,186 16,533,485 Unappropriated profit 48,337,278 46,490,244 76,974,203 74,474,468 Surplus on revaluation of assets - net of tax 23,157,521 26,199,360 100,131,724 100,673,828 CONTINGENCIES AND COMMITMENTS12 The annexed notes 1 to 22 form an integral part of these unconsolidated condensed interim financial statements. Chief Financial Officer Director 14 Condensed Interim Financial Statements President and Chief Executive Officer Director Chairman
17. Unconsolidated Condensed Interim Profit and Loss Account (Un-audited) for the half year ended June 30, 2017 Half year Ended Quarter Ended Note June 30, June 30, June 30, June 30, 2017201620172016 Rupees in ‘000 Mark-up / return / interest earned 13 32,362,058 34,596,864 Mark-up / return / interest expensed 14 16,068,044 16,892,236 Net mark-up / interest income 16,294,014 17,704,628 (Reversal) / provision against non-performing loans and advances - net (695,907) 180,356 (Reversal) / provision for diminution in the value of investments - net (8,061) 62,705 Bad debts written off directly – – (703,968) 243,061 Net mark-up / interest income after provisions 16,997,982 17,461,567 NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income 2,091,156 2,138,537 Dividend income 1,527,174 1,966,473 Income from dealing in foreign currencies 317,584 337,819 Gain / (loss) on sale of securities - net 289,531 2,453,383 Unrealized gain / (loss) on revaluation of investments classified as ‘held-for-trading’ - net – 3,906 Other income 178,125 70,012 Total non mark-up / interest income 4,403,570 6,970,130 21,401,552 24,431,697 NON MARK-UP / INTEREST EXPENSES Administrative expenses 9,801,512 9,290,691 Provision against other assets 24,000 26,717 (Reversal) / provision against off-balance sheet obligations - net (2,698) 10,782 Other charges 309,432 398,372 Total non mark-up / interest expenses 10,132,246 9,726,562 Extra-ordinary / unusual items – – PROFIT BEFORE TAXATION 11,269,306 14,705,135 Taxation: Current 4,098,201 5,424,473 Prior year 15 959,605 954,019 Deferred (262,585) (274,797) 4,795,221 6,103,695 PROFIT AFTER TAXATION 6,474,085 8,601,440 Unappropriated profit brought forward 46,490,244 41,415,882 PROFIT AVAILABLE FOR APPROPRIATION 48,337,278 45,222,326 Earnings per share - Basic and Diluted (in Rupees)16 5.65 7.51 16,615,695 8,320,948 8,294,747 17,493,849 8,286,995 9,206,854 (302,224) (95,744) (8,061) 62,705 – – (310,285) (33,039) 8,605,032 9,239,893 954,595 1,105,719 148,393 (9,940) 1,005,614 549,341 134,286 1,492,299 1,288 133,949 2,334,004 10,939,036 (8,943) 8,531 3,181,128 12,421,021 5,054,634 12,000 4,858,073 14,717 – 154,414 5,221,048 – 5,717,988 10,782 207,008 5,090,580 – 7,330,441 2,042,392 959,605 (156,212) 2,845,785 2,872,203 2,652,656 954,019 (90,022) 3,516,653 3,813,788 47,742,117 48,337,278 43,735,347 45,222,326 2.51 3.33 The annexed notes 1 to 22 form an integral part of these unconsolidated condensed interim financial statements. Chief Financial Officer Director President and Chief Executive Officer Director Chairman ALLIED BANK 15
18. Unconsolidated Condensed Interim Statement of Comprehensive Income (Un-audited) for the half year ended June 30, 2017 Half year Ended Quarter Ended June 30, June 30, June 30, June 30, 2017201620172016 Rupees in ‘000 Profit after taxation for the period 6,474,085 8,601,440 2,872,203 3,813,788 Other comprehensive income Items to be reclassified to profit and loss account in subsequent periods: Exchange differences on translation of net investment in foreign operating branches 5,292 (3,768) (2,183) 115,207 Comprehensive income transferred to equity 6,479,377 8,597,672 2,870,020 3,928,995 Components of comprehensive income not reflected in equity: Items to be reclassified to profit and loss account in subsequent periods: Net change in fair value of ‘available-for-sale’ securities (4,637,287) 5,140,571 (3,446,159) 3,832,081 Related deferred tax charge / (reversal) 1,623,051 (1,799,200) 1,206,156 (1,341,228) (3,014,236) 3,341,371 (2,240,003) 2,490,853 Total comprehensive income 3,465,141 11,939,043 630,017 6,419,848 The annexed notes 1 to 22 form an integral part of these unconsolidated condensed interim financial statements. Chief Financial Officer Director 16 Condensed Interim Financial Statements President and Chief Executive Officer Director Chairman
19. Unconsolidated Condensed Interim Statement of Cash Flow (Un-audited) for the half year ended June 30, 2017 Half year Ended June 30, June 30, 2017 2016 Rupees in ‘000 CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation 11,269,306 14,705,135 Less: Dividend income (1,527,174) (1,966,473) 9,742,132 12,738,662 Adjustments for non-cash items: Depreciation / amortization 1,237,826 1,073,559 (Reversal) / provision against non-performing loans and advances - net (695,907) 180,356 (Reversal) / provision for diminution in the value of investments - net (8,061) 62,705 Unrealized gain on revaluation of ‘held-for-trading’ securities - net – (3,906) (Reversal) / provision against off-balance sheet obligations - net (2,698) 10,782 Provision against other assets 24,000 26,717 Provision for workers welfare fund 234,183 309,970 Gain on sale of operating fixed assets - net (23,689) (31,321) Loss on sale of other assets – 15,994 765,654 1,644,856 10,507,786 14,383,518 (Increase) / decrease in operating assets Lendings to financial institutions (1,881,733) 1,031,919 Net realization / (investment) - ‘held-for-trading’ securities 100,931 (1,425,732) Advances (58,715,010) (19,614,755) Other assets (excluding advance taxation) (1,562,402) (1,362,838) (62,058,214) (21,371,406) Increase / (decrease) in operating liabilities Bills payable (2,581,537) 1,861,160 Borrowings (5,522,967) (11,816,792) Deposits and other accounts 47,472,522 37,749,088 Other liabilities 1,532,591 (156,284) 40,900,609 27,637,172 (10,649,819) 20,649,284 Income tax paid (5,468,410) (6,698,420) Net cash flows generated from operating activities (16,118,229) 13,950,864 CASH FLOW FROM INVESTING ACTIVITIES Net realization / (investment) in ‘available-for-sale’ securities 35,635,671 (9,517,699) Net realization in ‘held-to-maturity’ securities 1,576,777 3,931,122 Dividend received 1,501,309 1,566,404 Investments in operating fixed assets (1,986,772) (2,045,879) Proceeds from sale of operating fixed assets 30,575 46,502 Net cash flows used in investing activities 36,757,560 (6,019,550) CASH FLOW FROM FINANCING ACTIVITIES Dividend paid (3,989,654) (3,984,372) Net cash flows used in financing activities (3,989,654) (3,984,372) Effect of translation of net investment in foreign operating branches 5,292 (3,768) Increase in cash and cash equivalents during the period 16,654,969 3,943,174 Cash and cash equivalents at beginning of the period 73,850,898 60,698,203 Effect of exchange rate changes on opening cash and cash equivalents (30,717) (10,900) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 90,475,150 64,630,477 The annexed notes 1 to 22 form an integral part of these unconsolidated condensed interim financial statements. Chief Financial Officer Director President and Chief Executive Officer Director Chairman ALLIED BANK 17
20. Unconsolidated Condensed Interim Statement of Changes in Equity (Un-audited) for the half year ended June 30, 2017 Capital Reserve Revenue Reserves Share Exchange Statutory General Un- Total Capital Translation Reserve Reserve appropriated Reserve Profit Rupees in ‘000 Balance as at January 01, 2016 (Audited) Changes in equity during the half year ended June 30, 2016 Total comprehensive income for the half year ended June 30, 2016: Net profit for the half year ended June 30, 2016 Effect of translation of net investment in foreign operating branches Transactions with owners recognized directly in equity: Final cash dividend for the year ended December 31, 2015 (Rs. 1.75 per ordinary share) First interim cash dividend for the year ended December 31, 2016 (Rs. 1.75 per ordinary share) Transferred from surplus on revaluation of fixed assets to un-appropriated profit - net of tax Transferred from surplus on revaluation of non-banking assets to un-appropriated profit - net of tax Transfer to statutory reserve Balance as at June 30, 2016 Changes in equity during the half year ended December 31, 2016 Total comprehensive income for the half year ended December 31, 2016: Net profit for the half year ended December 31, 2016 Effect of remeasurement of defined benefit plans-net of tax Effect of translation of net investment in foreign operating branches Transactions with owners recognized directly in equity: Second interim cash dividend for the year ended December 31, 2016 (Rs. 1.75 per ordinary share) Third interim cash dividend for the year ended December 31, 2016 (Rs. 2.00 per ordinary share) Transferred from surplus on revaluation of fixed assets to un-appropriated profit - net of tax Transferred from surplus on revaluation of non-banking assets to un-appropriated profit - net of tax Transfer to statutory reserve Balance as at December 31, 2016 (Audited) Changes in equity during the half year ended June 30, 2017 Total comprehensive income for the half year ended June 30, 2017: Net profit for the half year ending June 30, 2017 Effect of translation of net investment in foreign operating branches Transactions with owners recognized directly in equity: Final cash dividend for the year ended December 31, 2016 (Rs. 1.75 per ordinary share) First interim cash dividend for the year ending December 31, 2017 (Rs. 1.75 per ordinary share) Transferred from surplus on revaluation of fixed assets to un-appropriated profit - net of tax Transferred from surplus on revaluation of non-banking assets to un-appropriated profit - net of tax Transfer to statutory reserve Balance as at June 30, 2017 11,450,739 68,933 15,027,093 6,000 41,415,882 67,968,647 – – – – (3,768) (3,768) – – – – – – 8,601,440 – 8,601,440 8,601,440 (3,768) 8,597,672 – – – – (2,003,879) (2,003,879) – – – – – – – – (2,003,879) (4,007,758) (2,003,879) (4,007,758) – – – – 28,915 28,915 – 860,144 15,887,237 – – 6,000 43,991 (860,144) 45,222,326 43,991 – 72,631,467 5,825,610 288,700 – 6,114,310 5,825,610 288,700 (7,478) 6,106,832 – – 11,450,739 – – 65,165 – – – – – – (7,478) (7,478) – – – – (2,003,879) (2,003,879) – – – – – - – - (2,290,148) (4,294,027) (2,290,148) (4,294,027) – – – – 28,915 28,915 – 582,561 16,469,798 – – 6,000 1,281 (582,561) 46,490,244 1,281 – 74,474,468 – – 11,450,739 – – 57,687 – – – – – – – – – – – – 5,292 5,292 – – – – – – 6,474,085 – 6,474,085 6,474,085 5,292 6,479,377 – – – – (2,003,879) (2,003,879) – – – – – – – – (2,003,879) (4,007,758) (2,003,879) (4,007,758) – – – – 27,470 27,470 – – 11,450,739 – – 62,979 – 647,409 17,117,207 – – 6,000 646 (647,409) 48,337,278 646 – 76,974,203 The annexed notes 1 to 22 form an integral part of these unconsolidated condensed interim financial statements. Chief Financial Officer Director 18 Condensed Interim Financial Statements President and Chief Executive Officer Director Chairman