BankIslami Pakistan: Consolidated Financial Statements - 31 March 2017

Transcription

1. QUARTERLY REPORT March 2017
2. 01 Corporate Information 37 Consolidated Financial Statements 03 Directors ’ Report 38 Directors’ Report 07 Statement of Financial Position 40 Consolidated Statement of Financial Position 08 Profit and Loss Account 41 Consolidated Profit and Loss Account 09 Statement of Comprehensive Income 42 Comprehensive Income 10 Cash Flow Statement 43 Consolidated Cash Flow Statement 11 Statement of Changes in Equity 44 Consolidated Statement of Changes in Equity 12 Notes to the Financial Statements 45 Notes to the Consolidated Financial Statements Consolidated Statement of
3. Corporate Information Board of Directors Mr . Ali Hussain Mr. Fawad Anwar Mr. Ali Mohamad Hussain Ali Mohamad Alshamali Dr. Amjad Waheed Mr. Hasan A. Bilgrami Mr. Noman Yakoob Mr. Siraj Ahmed Dadabhoy Chairman Vice Chairman Chief Executive Officer Sharia'h Supervisory Board Mufti Irshad Ahmad Aijaz Mufti Muhammad Husain Mufti Javed Ahmed Chairman Member Member Audit Committee Dr. Amjad Waheed Mr. Noman Yakoob Mr. Ali Mohamad Hussain Ali Mohamad Alshamali Chairman Member Member Risk Management Committee Mr. Fawad Anwar Mr. Noman Yakoob Mr. Hasan A. Bilgrami Chairman Member Member Human Resource Management Committee Mr. Ali Mohamad Hussain Ali Mohamad Alshamali Mr. Fawad Anwar Mr. Siraj Ahmed Dadabhoy Mr. Hasan A. Bilgrami Chairman Member Member Member Board Remuneration Committee Mr. Ali Mohamad Hussain Ali Mohamad Alshamali Mr. Fawad Anwar Mr. Siraj Ahmed Dadabhoy Chairman Member Member Executive Committee Mr. Ali Hussain Mr. Fawad Anwar Mr. Hasan A. Bilgrami Mr. Siraj Ahmed Dadabhoy Chairman Member Member Member Company Secretary Mr. Khawaja Ehrar ul Hassan Auditors EY Ford Rhodes, Chartered Accountants 01 Serving you, the Right way
4. Legal Adviser 1- Haidermota & Co. Barrister at Law 2- Mohsin Tayebaly & Co. Corporate Legal Consultants / Barristers & Advocates High Courts & Supreme Court Management (in alphabetical order) Mr. Ahmad Mobeen Malik Mr. Bilal Zuberi Mr. Fakhir Ahmad Mr. Farooq Anwar Mr. Hasan A. Bilgrami Mr. Khawaja Ehrar ul Hassan Mr. Masood Muhammad Khan Mr. Muhammad Asadullah Chaudhry Mr. Muhammad Faisal Shaikh Mr. Rehan Shuja Zaidi Mr. Saad Ahmed Madani Mr. Sadrauddin Pyar Ali Mr. Sohail Sikandar Mr. Syed Akhtar Ausaf Mr. Syed Ata Hussain Jaffri Mr. Syed Muhammad Aamir Shamim Regional General Manager Regional General Manager Head, Human Resources Head, Operations Chief Executive Officer Company Secretary & Head of Legal Head, Compliance Head, Service Quality & Phone Banking Head, Shariah Advisory & Structuring Head, Internal Audit Head, Corporate Banking Head, Administration & General Services Chief Financial Officer Head, Risk Management Head, Information System Head, Treasury & Financial Institutions Registered Office 11th Floor, Executive Tower, Dolmen City, Marine Drive, Block-4, Clifton, Karachi. Phone (92-21) 111-247(BIP)-111 Fax: (92-21) 35378373 Email: info@bankislami.com.pk Share Registrar Share Registrar Department Central Depository Company of Pakistan Limited CDC House, 99 – B, Block ‘B’, S.M.C.H.S., Main Shahra-e-Faisal Karachi-74400. Tel: Customer Support Services (Toll Free) 0800-CDCPL (23275) Fax: (92-21) 34326053 Email: info@cdcpak.com Website: www.cdcpakistan.com PUBLIC DEALING TIMINGS Monday to Thursday: 9:00 am to 7:00 pm Friday 9:00 am to 12:30 pm and 2:30 pm to 7:00 pm Saturday 9:00am to 1:00pm Website: www.bankislami.com.pk Quarterly Report 2017 02
5. Directors ’ Report Dear Shareholders, On behalf of the Board, I am pleased to present the financial results of the Bank for the first quarter ended March 31, 2017. The following are the key highlights: Mar 17 Mar 16 Growth (%) ………….Rupees in ‘millions’…………... Total Deposits Total Assets Total Financing and related assets-net Total Investments Shareholder's Equity Profit After Tax Basic Earnings per share - rupees Branches network-Number 159,110 188,058 99,319 44,615 12,304 66 0.065 322 144,484 181,711 75,231 71,933 11,533 125 0.124 317 10.12% 3.50% 32.02% -37.98% 6.68% -47.20% -47.58% 1.58% Financial Highlights: The deposit size of the Bank grew by Rs. 14.6bn i.e. 10.12% growth from the same quarter last year. The Current and Saving Accounts (‘CASA’) mix improved from 68.13% in Mar 2016 to 75.00% in Mar 2017. The financing to deposit ratio rose to 62.42% from 52.07% in Mar 2016. Consumer financing as a percentage of total financing also grew to 12.00% in the first quarter of 2017 resulting in improved yield.In addition to this, the Cost of funds fell compared to last year. All of this resulted in improvement in gross spread to 47.17% from 37.26% i.e. a rise of 991 bps as compared to same quarter last year. The infection ratio of the financing & advances portfolio, including the inherited non performing portfolio of Defunct KASB Bank, dropped from 16.60% in Mar 2016 to 14.69% as of Mar 2017. The non-funded income of the Bank has improved by 64.28% mainly on the back of increase in fee income on transaction banking.There is an increase in Administrative Expenses by 5.36%, however the cost to income ratio went down to 93.27% from 95.01% last year, thereby resulting in the Bank to report a profit after tax of Rs. 66mn for the first quarter of the year 2017.Ignoring the one off deferred tax adjustment last year, there was an improvement of Rs. 43mn compared to first quarter of 2016. 03 Serving you, the Right way
6. Achievements : The Bank continued to partner with renowned brands under loyalty program for its Debit Cardholders. The Alternative Delivery Channelsof the Bank have provided much needed impetus to its non-funded income and helped in generating healthy revenue stream. ATM Transactions, POS transactions, mBankIslami mobile app downloads and SMS banking activations have continued to show encouraging trends. The Bank continues to use technological driven platforms to enhance its service delivery and provide convenience to its customers. We expect 2017 to be yet another year where the result of the Bank will be erratic due to the impact of amalgamation with Defunct KASB Bank. While the operational integration has been completed, the growth in business of the acquired branches has been slow coupled with withdrawals. Substantial assets of the merged Bank remained frozen due to ongoing litigation while the Bank continues to fund them from its resources. That said, we are confident that by the end of 2017, we shall be in a position to put all of this behind us. InShaAllah. The growth in all of the business segments is very encouraging. Alhamdulillah. The Credit rating of the Bank is "A+" for long term entity rating and “A1" for short-term rating by Pakistan Credit Rating Agency Limited (‘PACRA’). The Board would like to place on record its deep appreciation for the State Bank of Pakistan for providing assistance and guidance. It would also like to thank the Securities and Exchange Commission of Pakistan and other regulatory authorities for their support to us. We would like to show our gratitude to our valued customers, business partners and shareholders for their continued patronage and trust. Moreover, we would also like to acknowledge the dedication, commitment and hard work put in by our management team and employees that has enabled BankIslami to capture a prominent position in the Banking industry in general and Islamic Banking industry in particular. On behalf of the Board, Hasan A Bilgrami Chief Executive Officer June 20th, 2017 Quarterly Report 2017 04
7. (Gross Spread) 05 Serving you, the Right way
8. Quarterly Report 2017 06
9. BankIslami Pakistan Limited Condensed Interim Statement of Financial Position As at March 31 , 2017 Note (Un-audited) March 31, 2017 (Audited) December 31, 2016 ------------- Rupees in '000 ------------- ASSETS Cash and balances with treasury banks Balances with other banks Due from financial institutions - net Investments - net Islamic financing and related assets and Advances (net) Operating fixed assets Deferred tax assets Other assets - net 6 7 8 9 10 11 12 7,291,443 1,036,855 16,788,755 44,614,808 99,319,420 9,316,286 6,021,438 3,668,536 188,057,541 8,921,433 1,140,150 27,218,665 46,316,927 77,816,802 9,347,525 5,918,460 4,166,208 180,846,170 2,460,813 9,029,756 159,109,559 5,153,704 175,753,832 2,273,934 6,066,307 154,399,657 5,661,606 168,401,504 12,303,709 12,444,666 LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Sub-ordinated loans Deferred tax liabilities Other liabilities 13 14 NET ASSETS REPRESENTED BY Share capital Discount on issue of shares 15 10,079,121 (79,042) 10,079,121 (79,042) Reserves Unappropriated profit 16 613,636 280,919 10,894,634 613,636 212,553 10,826,268 Surplus on revaluation of assets - net of tax 17 CONTINGENCIES AND COMMITMENTS 1,409,075 1,618,398 12,303,709 12,444,666 18 The annexed notes 1 to 26 form an integral part of this condensed interim financial information. CHIEF FINANCIAL OFFICER 07 PRESIDENT / CHIEF EXECUTIVE Serving you, the Right way CHAIRMAN DIRECTOR DIRECTOR
10. BankIslami Pakistan Limited Condensed Interim Profit and Loss Account (Un-audited) For the Quarter ended March 31, 2017 Note Profit / return earned Profit / return expensed Net spread earned March 31, March 31, 2017 2016 ------- Rupees in ‘000 ------2,480,247 1,310,371 1,169,876 19 Reversal of provision against non-performing Islamic financing and related assets and advances - net Provision / (reversal of provision) for diminution in the value of investments and placements - net Bad debts written off directly 10.13.2 2,234,486 1,401,943 832,543 (84,430) (500,768) 178 (84,252) 1,254,128 (46,605) 523 (546,850) 1,379,393 210,002 15,116 11,428 2,095 13,665 252,306 1,506,434 94,094 14,741 8,781 35,969 153,585 1,532,978 Extraordinary / unusual items 1,534,619 (131,652) 2,084 1,405,051 101,383 - 1,456,523 1,456,523 76,455 - PROFIT BEFORE TAXATION 101,383 76,455 27,330 8,318 35,648 23,881 (72,833) (48,952) 65,735 125,407 Net spread after provisions OTHER INCOME Fee, commission and brokerage income Dividend Income Income from dealing in foreign currencies Gain on sale of securities Unrealised gain on revaluation of investments classified as held for trading Other income Total other income OTHER EXPENSES Administrative expenses Other reversals - net Other charges Total other expenses Taxation Current Prior year Deferred PROFIT AFTER TAXATION --------- Rupees --------Basic earnings per share 20 0.0652 0.1244 Diluted earnings per share 20 0.0652 0.1244 The annexed notes 1 to 26 form an integral part of this condensed interim financial information. CHIEF FINANCIAL OFFICER PRESIDENT / CHIEF EXECUTIVE CHAIRMAN DIRECTOR DIRECTOR Quarterly Report 2017 08
11. BankIslami Pakistan Limited Condensed Interim Statement of Comprehensive Income (Un-audited) For the Quarter ended March 31, 2017 March 31, March 31, 2017 2016 ------- Rupees in ‘000 ------Profit after taxation for the period 65,735 125,407 65,735 125,407 (Deficit) / surplus on revaluation of available for sale investments Related deferred tax asset / (liability) (317,986) 111,294 (206,692) 306,325 (107,214) 199,111 Total comprehensive (loss) / income for the period (140,957) 324,518 Other Comprehensive Income Comprehensive income transferred to statement of changes in equity Components of comprehensive (loss) / income not reflected in equity The annexed notes 1 to 26 form an integral part of this condensed interim financial information. CHIEF FINANCIAL OFFICER 09 PRESIDENT / CHIEF EXECUTIVE Serving you, the Right way CHAIRMAN DIRECTOR DIRECTOR
12. BankIslami Pakistan Limited Condensed Interim Cash Flow Statement (Un-audited) For the Quarter ended March 31, 2017 Note March 31, March 31, 2017 2016 --------------------- Rupees in '000 --------------------CASH FLOW FROM OPERATING ACTIVITIES 101,383 101,383 76,455 76,455 162,565 1,658 14,917 364,455 142,369 9,668 261,290 (84,430) (500,768) 178 (131,652) (2,095) 17,094 (4,452) 338,238 439,621 (46,605) 15,820 (2,278) (120,503) (44,048) 10,429,910 (21,782,643) 490,863 (10,861,870) 31,240,788 (5,415,561) 398,919 26,224,146 Payments against defined benefit plan Income tax paid Net cash (used in) / generated from operating activities 186,879 2,963,449 4,709,902 (338,768) 7,521,462 2,900,787 (31,486) (2,932,273) (29,241) 15,653,961 (8,573,613) 186,601 7,237,708 33,417,806 (47,352) (26,878) 33,343,576 CASH FLOW FROM INVESTING ACTIVITIES Net investments in securities Investments in operating fixed assets Proceeds from disposal of operating fixed assets Net cash generated from / (used in) investing activities 1,340,780 (146,911) 5,120 1,198,989 (35,694,180) (259,576) 3,173 (35,950,583) Profit before taxation Less: Dividend Income Adjustments for non-cash charges and other items: Depreciation on operating fixed assets Depreciation on non banking assets Amortisation Depreciation on operating Ijarah assets Reversal of provision against non-performing Islamic financing and related assets - net 10.12.2 Provision / (reversal of provision) for diminution in the value of investments and placements - net Other reversals - net Unrealised gain on revaluation of investments classified as held for trading Charge for defined benefit plan Gain on sale of property and equipment (Increase) / decrease in operating assets Due from financial institutions Islamic financing and related assets Others assets (excluding defined benefit assets) Increase / (decrease) in operating liabilities Bills payable Due to financial institutions Deposits and other accounts Other liabilities (excluding current taxation) Decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the period 21 (1,733,285) 10,061,583 (2,607,007) 10,816,596 Cash and cash equivalents at the end of the period 21 8,328,298 8,209,589 The annexed notes 1 to 26 form an integral part of this condensed interim financial information. CHIEF FINANCIAL OFFICER PRESIDENT / CHIEF EXECUTIVE CHAIRMAN DIRECTOR DIRECTOR Quarterly Report 2017 10
13. BankIslami Pakistan Limited Condensed Interim Statement of Changes In Equity (Un-audited) For the Quarter ended March 31, 2017 Reserve (Accumulate for bad d losses) / debts & Total Unappropriat contingen ed profit cies ------------------------------------------- Rupees in '000 ------------------------------------------Share capital 10,079,121 Balance as at January 1, 2016 Profit after taxation for the quarter ended transferred from Statement of Comprehensive Income Transfer from surplus on revaluation of fixed assets - net of tax - Balance as at March 31, 2016 10,079,121 Discount on issue of shares Statutory reserve (79,042) 273,176 (79,042) 250,000 - - 273,176 250,000 (171,453) 125,407 2,564 (43,482) 10,351,802 125,407 2,564 10,479,773 Profit after taxation for the period from April 1, 2016 to December 31, 2016 transferred from Statement of Comprehensive Income - - - - 326,893 326,893 Transfer from surplus on revaluation of fixed assets - net of tax - - - - 7,817 7,817 Transfer from surplus on revaluation of non banking assets - net of tax - - - - 168 168 Transfer to statutory reserve - - 90,460 - Remeasurements of the net defined benefit liability / asset - net of tax Balance as at December 31, 2016 10,079,121 (79,042) 363,636 250,000 (90,460) - 11,617 11,617 212,553 10,826,268 Profit after taxation for the quarter ended transferred from Statement of Comprehensive Income - - - - 65,735 65,735 Transfer from surplus on revaluation of fixed assets - net of tax - - - - 2,564 2,564 Transfer from surplus on revaluation of non banking assets - net of tax - Balance as at March 31, 2017 10,079,121 (79,042) 363,636 250,000 67 67 280,919 10,894,634 The annexed notes 1 to 26 form an integral part of this condensed interim financial information. CHIEF FINANCIAL OFFICER 11 PRESIDENT / CHIEF EXECUTIVE Serving you, the Right way CHAIRMAN DIRECTOR DIRECTOR
14. BankIslami Pakistan Limited Notes to and Forming Part of Condensed Interim Financial Statements (Un-audited) For the Quarter ended March 31, 2017 1 STATUS AND NATURE OF BUSINESS 1.1 BankIslami Pakistan Limited (the Bank) was incorporated in Pakistan as a public limited company on October 18, 2004 under the Companies Ordinance, 1984 to carry out the business of an Islamic Commercial Bank in accordance with the principles of Islamic Shariah. The State Bank of Pakistan (SBP) granted a ‘Scheduled Islamic Commercial Bank’ license to the Bank on March 18, 2005. The Bank commenced its operations as a Scheduled Islamic Commercial Bank with effect from April 07, 2006, on receiving Certificate of Commencement of Business from the State Bank of Pakistan (SBP) under section 37 of the State Bank of Pakistan Act, 1956. The Bank is principally engaged in corporate, commercial, consumer, retail banking and investment activities. The Bank is operating through 322 branches including 118 sub branches as at March 31, 2017 (December 31, 2016: 321 branches including 118 sub branches). The registered office of the Bank is situated at 11th Floor, Dolmen City, Marine Drive, Block-4, Clifton, Karachi. The shares of the Bank are quoted on the Pakistan Stock Exchange Limited (formerly Karachi Stock Exchange Limited). The Pakistan Credit Rating Agency (Private) Limited (PACRA) has maintained the Bank's long-term rating as 'A+' and the short-term rating as 'A1'. 2 BASIS OF PRESENTATION 2.1 The Bank provides financing mainly through Murabahah, Ijarah, Istisna, Diminishing Musharakah, Muswammah and other Islamic modes. 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 utilised and the appropriate portion of profit thereon. The income on such financing is recognised in accordance with the principles of Islamic Shariah. However, income, if any, received which does not comply with the principles of Islamic Shariah is recognised as charity payable as directed by the Shariah Board of the Bank. 2.2 This condensed interim financial information is the separate condensed interim financial information of the Bank in which investments in subsidiaries are carried at cost less accumulated impairment losses, if any, and are not consolidated. The condensed interim consolidated financial information of the Group is being issued separately. Quarterly Report 2017 12
15. 3 STATEMENT OF COMPLIANCE 3 .1 This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFASs) issued by the Institute of Chartered Accountants of Pakistan, as are notified under the Companies Ordinance, 1984, provisions of and directives issued under the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962, and the directives issued by the SECP and the SBP. Wherever the requirements of the provisions and directives issued under the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962, the IFAS notified under the Companies Ordinances, 1984 and the directives issued by the SECP and the SBP differ from the requirements of IFRS, the provisions of and the directives issued under the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962, IFAS notified under the Companies Ordinance, 1984 and the directives issued by the SECP and the SBP shall prevail. 3.2 The SBP through its BSD Circular No. 10 dated August 26, 2002, has deferred the implementation of International Accounting Standard (IAS) 39 - "Financial Instruments: Recognition and Measurement" and IAS 40 - "Investment Property" for Banking Companies in Pakistan, till further instructions. Accordingly, the requirements of these Standards have not been considered in the preparation of these condensed interim financial information. Further, the SECP has deferred the applicability of International Financial Reporting Standard (IFRS) 7 "Financial Instruments: Disclosures" through its S.R.O. 411(I)/2008 dated April 28, 2008. Accordingly, the requirements of this standard have also not been considered in the preparation of this condensed interim financial information. However, investments have been classified and valued in accordance with the requirements prescribed by the SBP through various circulars. 3.3 IFRS 8 "Operating Segments" was effective for the Bank’s accounting period beginning on or after January 1, 2009. All Banking Companies in Pakistan are required to prepare their annual financial statements in line with the format prescribed under BSD Circular No. 4 dated February 17, 2006, ‘Revised Forms of Annual Financial Statements’, effective from the accounting year ended December 31, 2006. The management of the Bank believes that as the SBP has defined the segment categorisation in the above mentioned circular, the SBP requirements prevail over the requirements specified in IFRS 8. Accordingly, segment information disclosed in this condensed interim financial information is based on the requirements laid down by the SBP. 3.4 The SBP vide its BPRD Circular No. 04 dated February 25, 2015 has clarified that the reporting requirements of IFAS-3 for Islamic Banking Institutions (IBIs) relating to annual, half yearly and quarterly financial statements would be notified by SBP through issuance of specific instructions and uniform disclosure formats in consultation with IBIs. These reporting requirements have not been ratified to date. Accordingly, the disclosures requirements under IFAS 3 have not been considered in this condensed interim financial information. 13 Serving you, the Right way
16. 3 .5 Standards, interpretations and amendments to published approved accounting standards that are effective in the current period: There are certain new and amended standards and interpretations that are mandatory for the Bank's accounting periods beginning on or after January 1, 2017 but are considered not to be relevant or do not have any significant effect on the Bank's operations and therefore not detailed in this condensed interim financial information. 3.6 Early adoption of standards The Bank has not early adopted any new or amended standard in 2017. 4 BASIS OF MEASUREMENT 4.1 Accounting convention This condensed interim financial information has been prepared under the historical cost convention, except that certain fixed assets, certain investments, foreign currency balances and commitments in respect of foreign exchange contracts have been marked to market and are carried at fair value. Further, staff retirement benefits have been carried at present values as determined under the International Accounting Standards (IAS) 19 (revised) 'Employee Benefits' . 4.2 Functional and Presentation Currency This condensed interim financial information is presented in Pakistani Rupees, which is the Bank's functional and presentation currency. 4.3 Rounding off Figures have been rounded off to the nearest thousand rupees unless otherwise stated. 4.4 Critical accounting estimates and judgments The basis and the methods used for critical accounting estimates and judgments adopted in this condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2016. 5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies used in the preparation of in this condensed interim financial information are the same as those applied in the preparation of the annual financial statements of the Bank for the year ended December 31, 2016. Quarterly Report 2017 14
17. Note 6 CASH AND BALANCES WITH TREASURY BANKS In hand - local currency - foreign currency With the State Bank of Pakistan in - local currency current account - foreign currency deposit accounts Cash Reserve Account Special Cash Reserve Account US Dollar Clearing Account With National Bank of Pakistan in - local currency current account 7 3 ,180,141 413,069 3,593,210 3,154,686 410,919 3,565,605 2,374,463 3,646,460 241,958 90,193 4,468 336,619 241,958 78,950 11,421 332,329 987,151 7,291,443 1,377,039 8,921,433 2,407 95 2,502 2,407 95 2,502 1,034,353 1,036,855 1,137,648 1,140,150 1,139,776 15,648,979 16,788,755 32,400 16,821,155 993,686 26,224,979 27,218,665 32,400 27,251,065 (32,400) 16,788,755 (32,400) 27,218,665 BALANCES WITH OTHER BANKS In Pakistan - on current accounts - on deposit accounts Outside Pakistan - on current accounts 8 (Un-audited) (Audited) March 31, December 31, 2017 2016 ------- Rupees in '000 ------- DUE FROM FINANCIAL INSTITUTIONS Wakalah Placement Commodity Murabahah - local currency Other placements Provision against placements - transferred from the amalgamated entity 8.1 8.2 8.1 The profit rates on the agreements range between 0.26% to 1.40% (2016: 0.95% to 1.20%) per annum and the agreements have maturities ranging from 18 days to 61 days (2016: 18 days to 184 days). 8.2 The Bank has entered into Commodity Murabahah agreements under which the Bank purchases an underlying commodity from open market through an agent and sells it to a financial institution on credit with profit. The profit rates on the agreements range between 5.80% to 6.35% (2016: 5.80% to 6.40%) per annum and the agreements have maturities ranging from 3 days to 69 days (2016: 3 days to 160 days). 15 Serving you, the Right way
18. (Un-audited) (Audited) March 31, December 2017 31, 2016 ------- Rupees in '000 ------- Note 9 INVESTMENTS Investments - Islamic Investments - Conventional (relating to defunct KASB Bank Limited) 9.1 42,538,120 2,076,688 44,614,808 9.1 9.2 44,239,990 2,076,937 46,316,927 Islamic Investments by type ------------------March 31, 2017 (Un-audited)-----------------------------------December 31, 2016 (Audited)-----------------Held by Given as Total Held by Given as Total the Bank collateral the Bank collateral ------------------------------------------------------ (Rupees in '000) ------------------------------------------------------ Note Available for sale securities Sukuk / Certificates Units of Open-end mutual funds Ordinary Shares of listed companies Bai Muajjal 9.3 9.3 9.3 9.3 41,086,570 21 242,645 - - 41,329,236 42,524,588 447,908 42,281,922 21 242,645 - 41,329,236 42,281,922 21 242,645 - Held for trading securities Ordinary Shares of listed companies 9.3 302,552 - 302,552 447,908 - Subsidiaries 9.3 191,015 - 191,015 191,015 - 191,015 41,822,803 - 41,822,803 43,163,511 - 43,163,511 Total investments at cost Less: Provision for diminution in value of investments 9.3 Investments - net of Provisions (Deficit) / surplus on revaluation of held for trading securities Surplus on revaluation of available-for-sale securities (46,125) 41,776,678 17.3 Total investments at market value 9.2 42,524,588 - 41,086,570 21 242,645 - - (46,125) - 41,776,678 (46,125) 43,117,386 - (46,125) - 43,117,386 (12,518) - (12,518) 30,658 - 30,658 773,960 - 773,960 1,091,946 - 1,091,946 42,538,120 - 42,538,120 44,239,990 - 44,239,990 Conventional Investments by type (relating to defunct KASB Bank Limited) * ------------------March 31, 2017 (Un-audited)-----------------------------------December 31, 2016 (Audited)-----------------Held by Given as Total Held by Given as Total the Bank collateral the Bank collateral -------------------------------------------- (Rupees in '000) -------------------------------------------- Note Available for sale securities Ordinary Shares of listed companies 9.4 967,706 - 967,706 967,706 - 967,706 Ordinary Shares of unlisted companies 9.4 1,189,030 - 1,189,030 1,189,030 - 1,189,030 Listed Term Finance Certificates 9.4 105,021 - 105,021 105,092 - 105,092 Unlisted Term Finance Certificates 9.4 177,822 - 177,822 177,822 - 2,439,579 2,439,650 2,439,579 - 177,822 - 2,439,650 Held to maturity securities Unlisted Term Finance Certificates 9.4 321,601 - 321,601 321,601 - 321,601 Associates 9.4 1,660,111 - 1,660,111 1,660,111 - 1,660,111 Subsidiaries 9.4 2,499,708 - 2,499,708 2,499,708 - 2,499,708 6,920,999 - 6,920,999 6,921,070 - 6,921,070 (4,844,311) - (4,844,311) (4,844,133) - (4,844,133) 2,076,688 - 2,076,688 2,076,937 - 2,076,937 Total investments at cost Less: Provision for diminution in the value of investments Total investments at market value 9.4 * These investments are under process of conversion / liquidation / disposal. Quarterly Report 2017 16
19. (Un-audited) (Audited) March 31, December 2017 31, 2016 ------- Rupees in '000 ------9.3 Islamic Investments by segments Federal Government Securities GOP Ijarah Sukuks 36,942,954 37,756,627 4,143,616 4,525,295 Fully paid up ordinary shares / Units Ordinary shares of listed companies Units of Open-End mutual funds 545,197 21 690,553 21 Subsidiaries BankIslami Modaraba Investments Limited 191,015 191,015 41,822,803 43,163,511 Sukuk certificates Sukuks - Unlisted Total investments at cost Less: Provision for diminution in value of investments Investments - net of provisions (Deficit) / surplus on revaluation of held for trading securities Surplus on revaluation of available-for-sale securities Total investments at market value 9.4 (46,125) 41,776,678 (12,518) 773,960 (46,125) 43,117,386 30,658 1,091,946 42,538,120 44,239,990 967,706 1,189,030 967,706 1,189,030 105,021 499,423 105,092 499,423 2,394,937 104,771 2,394,937 104,771 41,867 432,302 558,000 627,942 41,867 432,302 558,000 627,942 Total investments at cost 6,920,999 6,921,070 Less: Provision for diminution in value of investments (4,844,311) (4,844,133) Total investments at market value 2,076,688 2,076,937 Conventional Investments by segments Fully paid up ordinary shares Listed Companies Unlisted Companies Term Finance Certificates, Debentures, Bonds and Participation Term Certificates: Listed Companies Unlisted Companies Subsidiaries BIPL Securities Limited (Formerly KASB Securities Limited) My Solutions Corporation Limited Associates - Unlisted KASB Capital Limited KASB Funds Limited New Horizon Exploration & Production Limited Shakarganj Food Products Limited 17 Serving you, the Right way
20. Note 10 10 .1 (Un-audited) (Audited) March 31, December 31, 2017 2016 ------- Rupees in '000 ------- ISLAMIC FINANCING AND RELATED ASSETS AND ADVANCES Islamic financing and related assets - net 10.1 98,381,393 76,826,353 Advances (relating to defunct KASB Bank Limited) - net 10.2 938,027 990,449 99,319,420 77,816,802 ISLAMIC FINANCING AND RELATED ASSETS In Pakistan - Murabahah financing and related assets 10.3 & 10.9 28,630,898 13,798,029 - Istisna financing and related assets 10.4 & 10.10 15,100,975 13,973,015 - Diminishing Musharakah - Housing 8,603,625 7,661,273 - Diminishing Musharakah - Auto 2,006,728 877,758 - Diminishing Musharakah financing and related assets 10,090,035 8,950,359 - Against Bills - Murabahah 8,059 12,310 - Post Due Acceptance - Salam - Muswammah financing and related assets / Karobar financing - Running Musharakah - Investment Agency Wakalah - Housing finance portfolio - others - Net investment in Ijarah financing in Pakistan - Ijarah financing under IFAS 2 and related assets 10.6 Others 30,525 25,073 10.5 75,000 75,000 10.7 10,580,594 7,918,202 Financing to employees 2,101,271 2,061,846 FBP Against Bai Salam 4,418 50,577 10,200,000 10,000,000 6,250,000 6,250,000 49,938 73,761 39,422 39,829 10.8 Gross financing and related assets 6,589,423 6,910,162 100,360,911 78,677,194 Less: Provision against non-performing Islamic financing and related assets - Specific 10.11 & 10.12 (1,763,516) (1,658,774) - General 10.11 & 10.12 (216,002) (192,067) 98,381,393 76,826,353 Islamic financing and related assets – net of provisions Quarterly Report 2017 18