Dubai Islamic Bank Pakistan: Condensed Interim Financial Information - 30 June 2020

Transcription

1. D U B A I I S L A M I C BANK PAKISTAN LIMITED C o n d e n s e d I n t e r i m Financial Information For t h e half y e a r ended J u n e 3 0 , 2 0 2 0
2. Deloitte Deloitte Yousuf A d i l Chartered Accountants Cavish Court , A-3S, Block 7 & 8 KCHSU, Shahrah-e-Faisal Karachi-75350 Pakistan Tel: Fax: +92 (0)21 3454 6494-7 +92 (0) 21-3454 1314 www.deloitte.com INDEPENDENT AUDITOR'S REVIEW REPORT To the members of Dubai I s l a m i c Banic Pakistan Limited Report on review of I n t e r i m Financial I n f o r m a t i o n Introduction We h a v e r e v i e w e d t h e a c c o m p a n y i n g c o n d e n s e d i n t e r i m s t a t e m e n t o f f i n a n c i a l p o s i t i o n o f D U B A I I S L A M I C B A N K P A K I S T A N L I M I T E D ( " t h e B a n k " ) as a t June 3 0 , 2 0 2 0 a n d t h e r e l a t e d c o n d e n s e d i n t e r i m s t a t e m e n t o f p r o f i t a n d loss a c c o u n t , c o n d e n s e d i n t e r i m s t a t e m e n t o f c o m p r e h e n s i v e i n c o m e , c o n d e n s e d i n t e r i m s t a t e m e n t of c h a n g e s in e q u i t y a n d c o n d e n s e d i n t e r i m cash f l o w s t a t e m e n t , a n d n o t e s t o t h e financial i n f o r m a t i o n f o r t h e half y e a r t h e n e n d e d ( h e r e - i n - a f t e r r e f e r r e d t o as t h e " i n t e r i m f i n a i n f o r m a t i o n " ) . M a n a g e m e n t is r e s p o n s i b l e f o r t h e p r e p a r a t i o n a n d p r e s e n t a t i o n o f t h i s i n t e r i m f i n a n c i i n f o r m a t i o n in a c c o r d a n c e w i t h a c c o u n t i n g a n d r e p o r t i n g s t a n d a r d s as a p p l i c a b l e in Pakistan f o r i n t e r financial r e p o r t i n g . O u r r e s p o n s i b i l i t y is t o e x p r e s s a c o n c l u s i o n o n t h i s f i n a n c i a l i n f o r m a t i o n based o review. Scope of Review W e c o n d u c t e d o u r r e v i e w in a c c o r d a n c e w i t h I n t e r n a t i o n a l S t a n d a r d on Review E n g a g e m e n t s 2 4 1 0 , "Review of I n t e r i m Financial I n f o r m a t i o n P e r f o r m e d by t h e I n d e p e n d e n t A u d i t o r o f t h e E n t i t y . " A r e v i e w o f i n t e r f i n a n c i a l i n f o r m a t i o n c o n s i s t s of m a k i n g i n q u i r i e s , p r i m a r i l y o f p e r s o n s r e s p o n s i b l e f o r f i n a n c i a l a c c o u n t i n g m a t t e r s , a n d a p p l y i n g a n a l y t i c a l a n d o t h e r r e v i e w p r o c e d u r e s . A r e v i e w is s u b s t a n t i a l l y less scope t h a n an a u d i t c o n d u c t e d in a c c o r d a n c e w i t h I n t e r n a t i o n a l S t a n d a r d s on A u d i t i n g a n d c o n s e q u e n t l y does not e n a b l e us t o o b t a i n a s s u r a n c e t h a t we w o u l d b e c o m e a w a r e o f all s i g n i f i c a n t m a t t e r s t h a t m i g h t be i d e n t i f i e d in a n a u d i t . A c c o r d i n g l y , w e d o n o t e x p r e s s a n a u d i t o p i n i o n . Conclusion Based o n o u r r e v i e w , n o t h i n g has c o m e t o o u r a t t e n t i o n t h a t causes us t o believe t h a t t h e a c c o m p a n y i n g i n t e r i m f i n a n c i a l i n f o r m a t i o n is n o t p r e p a r e d , in all m a t e r i a l r e s p e c t s , in a c c o r d a n c e w i t h a c c o u n t i n g r e p o r t i n g s t a n d a r d s as a p p l i c a b l e in P a k i s t a n f o r i n t e r i m f i n a n c i a l r e p o r t i n g . Other Matters The f i g u r e s f o r t h e quarters e n d e d J u n e 3 0 , 2 0 2 0 a n d 2 0 1 9 in t h e c o n d e n s e d i n t e r i m p r o f i t a n d loss a c c o u n and c o n d e n s e d i n t e r i m s t a t e m e n t o f c o m p r e h e n s i v e i n c o m e h a v e n o t b e e n r e v i e w e d a n d w e do n o t e x p r e s s a conclusion on t h e m as w e a r e r e q u i r e d t o r e v i e w only t h e c u m u l a t i v e f i g u r e s f o r t h e half y e a r e n d e d Jun 30, 2020. The e n g a g e m e n t p a r t n e r o n t h e a u d i t r e s u l t i n g in t h i s i n d e p e n d e n t a u d i t o r ' s r e p o r t is Hena S a d i q . Karachi Date: August 05, 2020 Member of Deloitte Touche Tohmatsu Limited
3. D u b a i Islamic B a n k Pakistan L i m i t e d Condensed Interim Statement o f Financial Position As at June 30 . 2020 J u n e 30, Note 2020 (Un-audited) December 3 1 , 2019 (Audited) Rupees i n '000 ASSETS Cash and balances w i t h treasury banks 6 22,718,185 Balances w i t h other banks 7 1,266,273 1,246,953 D u e f r o m financial institutions 8 1,596,481 5,590,405 Investments 9 65,177,361 49,157,269 Islamic financing and related assets - net 19,417,428 10 189,013,905 177,921,837 F i x e d assets 11 4,149,371 4,288,414 Intangible assets 12 285,578 204,062 13 9,441,273 6.812,250 293,648,427 264,638,618 Deferred tax assets Other assets LIABILITIES B i l l s payable 14 2,314,646 2,972,307 D u e to financial institutions 15 11,384,678 9,813,903 Deposits and other accounts 16 237,251,733 209,952,073 Subordinated sukuk 17 7,120,000 7,120,000 Deferred tax liabilities 18 295,661 750,167 Other liabilities 19 NET ASSETS REPRESENTED 12,180,835 11,867,534 270,547,553 242,475,984 23,100,874 22,162.634 11,652,288 11,652,288 2,252,776 1,896,073 BY Share capital Reserves Surplus on revaluation o f investments 20 Unappropriated p r o f i t CONTINGENCIES AND COMMITMENTS 419,950 1,265,224 8,775,860 7,349,049 23,100,874 22,162,634 21 T h e annexed notes i to 38 f o r m an integral part o f this condensed i n t e r i m financial information.
4. C o n d e n s e d I n t e r i m P r o f i t a n d Loss A c c o u n t ( U n - A u d i t e d ) For the half-year ended June 30. 2020 Quxrter ended June 30, 2020 Half year ended June 30, 2020 Quarter Half year ended June ended June 30,2019 30,2019 Restated Rupees in '000 22 7,258,181 Profit / return expensed Net P r o f l t / return 23 (4,011,936) (8,798,067) (3,707,527) (6,761,457) 3,246,245 6,166,212 2,634,578 4,919,973 352,713 727,441 427.643 851,511 274,119 391,564 OTHER 14,964,279 6,342,105 11,681,430 Profit / return earned INCOME Fee and commission income 24 Dividend income Foreign exchange income Gain on securities 206,956 362.659 25 982 982 Other income 26 374 648 T o t a l other income T o t a l income 271 898 980 561,025 1,091,730 702,660 1.244,326 3,807,270 7,257.942 3,337.238 6.164,299 (1,790.383) (29,477) (3,666,210) (1.663.839) (3.187,137) (59,744) (33.145) (56,623) (42) t312) O T H E R EXPENSES Operatir^ expenses Workers Welfare Fund 27 • t h e r charges 28 T o t a l other expenses Profit before provisions Provisions and write offs - net PROFIT BEFORE 29 TAXATION Taxation (3,725,996) (1,697,296) (3,247,567) 1,987.410 3,531,946 1.639,942 2,916.732 (498,209) 1,489,201 30 PROFIT AFTER T A X A T I O N (3,807) (1,819,860) (606,079) 2,925,867 (123,377) 1,516.565 (323.909) 2,592,823 (580,625) (1,142,353) (608,106) (1,128,068) 908.576 1.783.514 908,459 1.464,755 0.78 1,26 Rupees Basic & diluted earnings per share 3! 0.78 1.53 rhe annexed notes I to 38 form an i m e ^ a l part o f this condensed interim financial information, 5
5. Condensed I n t e r i m Statement o f C o m p r e h e n s i v e I n c o m e ( U n - A u d i t e d ) For the half-year ended June 30, 2020 Quarter ended June 30.2020 Half year ended June 30,2020 Quarter Half year ended June ended June 30. 2019 30, 2019 Restated Rupees i n '000 Profit after taxation for the period 908,576 1.783,514 908,459 1,464,755 85,103 412.214 993,562 1,876,969 O t h e r comprehensive income Items that may be reclassiried t o profit anJ loss account in subsequent periods: Movemenl in surplus / (deficit) on revaluation o f investments - net o f tax 452,404 T o t a l comprehensive income 1,360,980 (845,274) 938,240 The atmexed notes I to 38 form an integral part o f this condensed interim financial information.
6. Dubai Islamic Banic Pakistan Limited Condensed Interim Statement of Changes in Equity (Un-Audited) For the half-year ended June 30, 2020 Share capital Statutory reserve (Deficit) / surplus on revaluation o f investments UnapproTotal priated profit Rupees in '000 Balance as at January 01,2019 11,652,288 1,226,954 (820,667) 4,691.599 16,750,174 1,464,755 1.464,755 1,464,755 412,214 1,876.969 Total comprehensive income for the period Profit after taxation for the half year ended June 30, 2019 412,214 412,214 Other comprehensive income - net of tax Transfer to statutory reserve Balance as at June 30, 2019 (292.951) 292,951 11,652,288 1,519.905 (408,453) 5,863,403 18,627,143 1,880,842 1,880,842 (19.028) 1,861,814 1,654,649 3.535,491 Total comprehensive income for the period Profit taxation for the half year ended December 3 ! , 2019 Other comprehensive income / (loss) - net of tax Transfer to statutory reserve Balance as at December 31, 2019 1,673,677 1.673,677 376,168 11,652,288 1.896,073 (376,168) 1,265,224 7349,049 22,162,634 1,783,514 1,783,514 Total compretiensive income for the period Profit after taxation for the half year ended June 30,2020 Other comprehensive loss - net o f tax (845.274) (845,274) Transfer to statutory reserve Balance as a l June 30, 2020 356,703 11.652.288 2.252,776 1,783,514 (845,274) 938,240 (356,703) 419,950 8,775.860 23.100.874
7. D u b a i I s l a m i c B a n k Pakistan L i m i t e d Condensed Interim Cash Flow Statement (Un-Audited) For the half-year ended June 30, 2020 Note CASH FLOW FROM OPERATING Hatfyear Halfyear ended June ended June 30,2020 30,2019 Rupees in '000 ACTIVITIES Profit before taxation 2,923,867 Adjustments for: Depreciation Depreciation on righi-of-use assets Amortisation Gain on securities Gain on sale of fixed assets Provisions and write offs - net Finance cost on Ijarah (lease) liabilities Decrease / (increase) in operating assets Due from financial institutions Islamic financing and related assets Others assets (Decrease) / increase in operating liabilities Bills payable IXie to financial institutions Deposits and other accounts Other liabilities (excluding current taxation) Income taxes paid 27 154,873 368,106 2 7 25,377 25 (982) 26 (648) 29 606,079 23176,278 1,329,083 4,254,950 27 2,592,823 161,360 326,916 31,175 (271) (980) 323,909 172,647 1.014,757 3,607.580 3,993,924 (11,698,147) (1,673,184) (9.377,407) (218.778) (18,056,006) (4.713.800) (22,993,584) (657,661) 1470,775 27,299,660 (670,3101 27,542,464 22,420,007 608,004 21,082.624 23,032.794 2,059,793 46.783,215 27,397.211 (1,009,356) 31,410,651 (1.043,281) 26.353,930 (17,319,532) (443,187) (222,522) 1,560 (106,893) (18,090,574) (11,161,180) [505,074) (136,822) 23,681 (75,926) (11,855,321) 3.320,077 14.498,609 20,664,381 32 23.984.4S8 18.983,985 33.487.594 Net cash gcnerateil fram operatiag activities CASH FLOW FROM INVESTING ACTIVITIES Net investments in available for sale securities Payment of Ijarah (lease) liabilities against right-of-use assets Investments in fixed assets Proceeds from sale of fixed assets Investments in intangible assets Net cash flow used in investing activities Increase in casta and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period The annexed notes 1 to 38 form an integral part of this condensed interim financial information. Director Director
8. Dubai Islamic Bank Pakistan Limited Notes to and fomiing part o f the Condensed Interim Financial Information {Un-Auditedl For the half-year ended June 30. 2020 1. STATUS AND N A T U R E OF BUSINESS 1.1 Dubai Islamic Bank Pakistan Limited (the Bank) was incorporated in Pakistan as an unlisted public limited company on M under the Companies Act, 2017 (previously Companies Ordinance, 19S4) to carry out the business o f an Islamic Conunerci accordance with the principles of Islamic Shari'a. 1.2 The State Bank o f Pakistan (the SBP) granted a "Scheduled islamic Commercial Bank" license to the Bank on November 26 subsequently the Bank received the Certificate of Commencement of Business from the Securities and Exchange Commis Pakistan (the SECP) on January 26, 2006. The Bank commenced its operations as a scheduled Islamic Commercial Bank wit from March 28, 2006 on receiving certificate of commencement o f business from the SBP. The Bank is principally corporate, conunercial, consumer, investing and retail banking activities. 1.3 VIS Credit Rating Company Limited (fomicrly JCR-VIS Credit Rating Company Limited) on June 30, 2020 has reaffirmed medium to long-term rating at AA' (Double A) and the short term rating at 'A-I+-' (A-One Plus) with stable outlook. 1.4 The Bank is operating through 235 branches (including 25 sub-branches) as at June 30, 2020 (December 31. 2019: 235 bran registered office o f the Bank is situated at Hassan Chambers, DC-7, BIock-7 Kehkashan, Clifton, Karachi. The Bank is a subsidiary o f Dubai Islamic BaiJr PJSC, UAE (the Holding Company). 2. 2.1 3. 3.1 BASIS OF P R E S E N T A T I O N The Bank provides Islamic financing and makes investments mainly through Murabaha, Musharaka, Running Mushar Shirkatuimilk, Istisna cum Wakaia, Wakala Istithmar and export refinance under Islamic export refinance scheme o f SBP Islamic modes as briefly explained in the annual financial statements for the year ended December 31, 2019. The tr purchases, sales and leases executed under these arrangements are not reflected in this condensed interim financial infor but are restricted to the amount of facility actually utilized and the appropriate portion o f rental / profit thereon. Islamic financing and related assets is recognised in accordance with the principles o f Shari'a However, income i f any does not comply with the principles o f Shari'a is recognised as charity payable i f so directed by the Shari'a Board / Board Member, S T A T E M E N T OF C O M P L I A N C E This condensed interim financial information has been prepared in accordance with approved accounting and reporting applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Paki financial repeating comprise o f Intemational Accounting Standards (IAS) 34, Interim Financial Reporting, Board (lASB) as notified under the Companies Act. 2017; issued by the International Accountin Islamic Financial Accounting Standards (IFAS) issued by the Institute o f Chartered Accountants of Pakistan, as are the Companies Act, 2017; Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and Directives issued by the SBP and the SECP. Whenever the requirements o f the Banking Companies Ordinance. 1962, the Companies Act, 2017 or the directives issued b and the SECP differ with the requirements of the L\ 34, requirements of the Banking Companies Ordinance, 1962, the C Act, 2017 and the said directives shall prevail.
9. 3 .2 Signiricanl accounting policies The significant accouming policies adopted in the preparation of this condensed interim financial infomiation are consist applied in die preparation o f the annual financial statements o f the Bank for the year ended December 3 1 , 2019. 3.2.1 Adoption of IFRS Leases In June 2019, the Bank adopted IFRS 16 'Leases' with effect from January 0 1 , 2019 as directed by the SBP vide its BPR Letter No. 8 dated April 30, 2019 and BPRD Circular No, BPRD/RPD/2019/17 dated July 26, 2019. Accordingly, the fi information for the quarter ended June 30, 2019 has been restated. 3.2.2 Amendments to approved accounting standards that are effective in the current period There are certain other new and amendment to standards that became effective during the period (enumerated in note 2.3 to financial statements of the Bank for the year 2019). However, such standards did not have any significant effect on t interim financial infonnalion. 3.2 J Standards, interpretations and amendments to approved accounting standards that are not yet effective There are certain other standards, amendments and interpretations with respect to the approved accounting standards that effective and are not expected to have any material impact on the Bank's condensed interim financial information in the initial application. With regards to IFRS 9 implementation, the SBP vide its BPRD Circular No.04 of 2019 dated Octob directed the banks in Pakistan to implement IFRS 9 with effect from January 01, 2021. 4. BASIS O F M E A S U R E M E N T 4.1 Accounting convention This ccMidensed interim financial information have been prepared under the historical cost convention, except that certai foreign currency balances and commitments in respect of certain foreign exchange contracts have been marked to market and fair value. 4.2 Functional and presentation currency This condensed interim financial Information have been presented in Pakistani Rupees, which is the Bank's fiinctionaJ and currency. 4.3 C r i t i c a l accounting estimates and judgments The basis for accounting estimates adopted in the preparation of this condensed interim financial information is the same in the preparation o f the annual financial statements for the year ended December 31, 2019, 5. FlNANCLiL RISK M A N A G E M E N T The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in t statements for the year ended December 31, 2019. These risk management policies ccmtinue to remain robust and the Bank aware of the risks associated with C 0 V I D - I 9 and on an ongoing basis conducts assessment o f its portfolio and operations risks are minimized. I'he Stale bank ot Pakistan (SBP) has responded lo the crisis by cuning the policy rate by 623 basis points to 7 p introducing regulatory measures to maintain banking system soundness and to sustain economic activity. These include (i) capital conservation buffer by 100 basis points lo 15 percent; (ii) increasingtheregulatory limit on extension of credit 125 million (o Rs 180 million; (ill) relaxing the debt burden ratio for consumer financing fi-om 50 percent to 60 perce banks to defer clients* payment of principal and profit on financing obligations by one year; (v) relaxing regula restructured/rescheduled financing for borrower who require relief beyond the extension of principal repayment for o Relaxing credit requironents for exporters and importers; and (vii) Refinance schemes to support employment to preve workers and health sector to combat COVID-19 Pandemic,
10. June 30 , 2020 2019 (Un-audited) A'o/e December 31, (Audited) (Rupees in '000) CASH AND BALANCES W I T H TREASURY BANKS I n hand - local currency 2,719,058 - foreign currencies 2,186,187 875,744 4,905,245 3,490,729 13,361,858 11,957,210 18,526 6,824 2,614,985 W i t h State Banlc o f Pakistan in - local currency current accounts 6.1 - f o r e ^ cunency current accounts - foreign currency deposit accounts - Cash reserve account 6.2 1,617,571 1,502,099 - Special cash reserve account 6.2 1,940,968 1.802,411 3,558,539 3,304,510 W i t h National B a n k o f Pakistan i n - local currency current accounts 874,017 658,155 22,718,185 19,417,428 6.1 The local currency current account is maintained with the State Bank o f Pakistan (SBP) as per the requirements o f Section Companies Ordinance, 1962, This section requires banking companies to maintain a local currency cash reserve in the cunent acc the SBP at a sum not less than 5% o f its demand and time liabilities in Pakistan. 6.2 As per BSD Circular No, 15 dated June 2 1 , 2008, cash reserve of 5% and special cash reserve o f 6% are required to be maint deposits held under the New Foreign Currency Accounts Scheme (FE-25 deposits) These accounts are non-remunerative in nature. Note June 30, December 31, 2020 2019 (Un-audit«d) (Audited) (Rupees i n *000) BALANCES W I T H O T H E R BANKS I n Pakistan - in local currency current accounts 617,334 - in foreign currency current account 10 773,233 448 10 618,718 773,691 1,374 - in local currency deposit account Outside Pakistan - in foreign cuireticies current accounts 7.1 7.1 647,555 473,262 1,266,273 1,246,953 This includes an amount o f Rs. 22,27 million (December 31, 2019: Rs. 36.61 million) deposited with the holding company. DUE FROM FINANCIAL INSTITUTIONS Wakala Placements June 30, December 31, 2020 2019 (TJn-iuditcd) (Audited) (Rupees in '000) 1,596,481 3,590,405 Bai Muajjal receivable from Scheduled Banks - secured 2,000,000 Musharaka - unsecured 1,596,481 5,590,405
11. IPiVESTMENTS 9 December 31 .21)19 (Audited) Juae 30,3020 (I'n-amlilcd} 9.1 liveatmenls by types: Cost/ amortued cost Provision for Surplus/ (deHcit) diminution Carrying value Provision for (Deficit) / Cost/ Carrying value surplus amortised cost diminution ' (Rupees in '000) Available-for-sale securities Federal Government secuncies Non-Government debt securities Foreign securities 500,000 46,752,490 17^56,675 64,609,165 (77,881) (77,881) 1,150 1,785,005 (1,140,078) 646,077 501,150 48,459,614 16,216,597 65,177,361 9.898,236 22,639,475 10.750.940 43,288,651 (77.831) (77.381) (98.982) 2.208,716 (163,235) 1,946,499 9.799,254 24,770.310 10,587.705 45,157,269 Held-to-maturity securidei Total invcstmeits 9^ 4,000,000 4,000,000 Federal Government securities 64,609,165 (77,881) 646,077 65,177,361 47,288.651 (77,881) Provision for dimiaulion in value of investments Note Opening balance 1,946.499 June 30, December 31, 2020 2019 (Un-audited) (Audited) (Rupees in '000) 77,881 70.495 77,881 77.B81 7.386 Charge for the period / year Closing balance 9.2.1 9.1.2 49,157.269 9.2.1 This represent sukuk of Quetta Tcxtite Mills Limited amounting lo Rs. 89.32 million (December 3), 2019: Rs. 89.32 million) which have been p status. The forced sale value (FSV) benefit of the collateral held in respect of this sukuk is Rs. 11.44 million (December 31, 2019: Rs. 11.44 diminuticMi (us been made in respect of the same. Proiit accrued on Ihts sukuk has been suspended The additional profit arising from availing die June 30,2020 amounting to Rs. 6,98 million (December 31,2019: Rs. 6,93 million) is not available for distribution as either cash or stock dividend Particulars of provblon against debt securities Category of classification Doniestic Other Assets Especially Mentioned Substandard Doubtfid Loss June 30,2020 (Un-audttcd) Dccembec31, 2019 (Audited) •NPI Provision *NPI ProWsioo (Rupees in '000) • 89,316 89JI6 77,881 77381 89.316 89.316 77,881 77,881 89,316 77,881 89.316 77,881 Overseas Total * NPI stands for non*performing investments.
12. ISLAMIC FINANCING AND RELATED ASSETS - NET Performing JuneJO , Dcccinber3l, 2020 2019 (Un-audited) (Audited) Noii-Pwforming Total June30, DecemberSI, Juae30, December 31, 2010 2019 2020 2019 (Ua-audiled) (Audited) (Uu-auditcd) (Audited) ia 10.! Murabaha 10.2 Miua«ntnah 10.3 Tijarah cum wakala 10.-f Istisna cum Wakala 10.3 Saiam 10.6 Islamic Export Refinaiice Scheme - SBP Other Islamic Refinance Sehemea - SBP Wakala Istithmar Running Musharaka financing 10.7 Shirkaiulmilk - Housing 10.8 Shirkatuimilk - Autos 10.9 Shiikaoiliiulk - Fleet financing 10.10 Shirkatulmiik - CXhers Diminishing Musharaka - Others Stafi* financing biamic riMaocing and related assets (grou) Provision against ts la otic Kaandag and related assets 10.12 Specific General Islamic financing and related aucis - net of provision 20,925,081 2,304,631 7,926,952 12,822,640 2,197,012 9,598,305 2,173,950 20,444,153 30,756,616 «,523J9T JS,5«7,631 6,561,414 16,021,921 28,745,941 1.963,930 186,453,584 (504,858) (504,858) 185,948,716 24,946,574 2,340.333 4.730,303 11.462.103 1,43S,9S6 7,037.242 938,963 19,593,584 27,179,165 9,234,227 16,979,101 7,649,095 14,953,776 25,771,325 l,9S3.559 176,253,336 (133,058) (133,058) 176.120,278 '000) 1,631,284 111,944 742,809 316,977 49»,n7 384,619 298,817 1.962,054 31,868 59,574 6,038,063 167,765 378,671 316,301 132,486 2,207.427 76,930 52,984 4.540,164 (2,971,884) (2.738.605) (2,971,884) 3,065,179 523,325 87,295 546,980 22,556,3«5 2,416,575 7,826,952 13,565,449 1.197,011 9,598,305 1,173,950 10,761,130 30,756,616 9,021,514 15,972,250 6,860,241 17,983,975 28,777,809 2,023,504 192,491,647 25.469.899 2,427,628 4,730,303 12,009,083 1,438,986 7,057,242 938,963 19,761,349 27,179,165 9,632,898 17.29S.402 7.831,581 17,166.203 25.848.255 2.006,543 180.793,500 (2.738,605) (2,972,884) (133.D58) (504,858) (2.738,605) (3,477,742) (2,871,663) 1,801,559 189,013,905 177,921,837 June 30, December 31. lOM 2019 (Un-audited) (Audited) — (Rupees in'000) — 10.1 Murabatia Finaocing Inventory Advance 10.2 2,376,181 40,393 2,416,575 2.374.564 53,064 2,427.628 7,317,573 509,377 7,816,952 3,780,540 949.763 4.730,303 9,762,807 3.802,641 13,565,449 8.144,766 3.864,317 12.009.083 Tijarah cum«>aiula Financing Invenrwy 10.4 8.678.014 16.082,423 709,462 25.469,899 Musawamah Financing Advance IDJ 6,542,685 14,029,691 1.983.989 22J56365 Istisna cum Walula Financing Advance
13. J «ae30, December 31, 2019 Z020 (Ua-audited) (Audited) — (Rupeesin 000) — 10.5 Salam i,i»7.ai2 Financing Advance 2,197,012 288,986 1,150,000 1.438,986 laismic Export Rrfinance Scheme - SBP Istisna - Advance Istiina - Financing Mumbaha - Advance Murabaha - Financing Running Musharaka - Financing Wakaia Istithmar ' Financing 10.7 9,005,514 16,000 9,021,514 9.578,338 54.560 9.632,898 ] 5,235,122 747,128 15,972,256 16.943,516 331.786 17,295,402 6,735,311 114,729 6,860,241 7,628,398 203,183 7,831,581 17,983,975 17.166.203 191,656,875 834.772 192,491.647 179.838.524 954.976 180,793,500 Siurkatulmilk-Autoa Financing Advance 1G.9 3,429,900 3,264,342 7,057,242 Shirkatuimilk- Housing Financing Advance 10.8 363.000 50,000 «93,70O 155,800 95,500 4,990,842 3.612,4«3 9,598.305 Shirkatuimilk - Fleet financiDg Financing Advance 10.10 ShMatulmilk-Others Financing 10.11 particulars orislamic financine and related assati la local currency la JbreiBn 10.12 Islamic financing and related assets include 6,038.063 million (Decembei 31, 2019: Rs. 4,540,164 million) which bave been placed under non-pe detailed below: Category of Classification June 30,1020 (L'u-audited) December 31. 2019 (Audited) NonNonProvision held Provisioa beid PerfomiiHg Performing • (Rupees iu '000)' Domealic Other Assets Especially Mentioned Substandard Doubtful Loss 88,149 108,147 631,804 5,109,863 6,038,063 23,023 86,288 2,863^73 2,971,884 53,990 467.090 856,995 3,162.089 4,540,164 57.317 80,502 2.600,986 2.738.605
14. 10 .12.1 Particulars of provision against Islamic financing and related assels: Jung 30, 2020 (Un-audited) December 31, 2019 (Audited) Total General Specific General Total (Rupees in '000) Specific Opening balance Charge for the period / year Reversals during ihe period y year Amounts written-off Closing balance 2,738,605 133,058 311,497 371.800 (77.218) 234,279 371,800 2.972,884 504,858 2,871,663 683.297 (77.218) 606,079 3,477,742 2,056,910 99,733 766,561 (84,866) 681,695 33.325 2,738,605 33,325 133,058 2,156,643 799,886 (84,866) 715,020 2,871,663 10.12.1.1 As allowed by Ihe SBP, the Bank has availed benefit of Forced Sale Value (FSV) amounting lo Rs.2,500 million (December 2019: Rs. 961 903 million) in determining Ihe provisioning against non performing Islamic financings as at June 30, 2020 additional profii arising from availing the FSV benefit - net of tax as at June 30, 2020 which is not available for distributio cash or stock dividend to shareholders amounted to Rs, 1,625 million (December 31. 2019: Rs. 625 237 million). 10.12.1.2 General provisionmg is held against consumer finance portfolio in accordance with the requirements o f the Prudential Regula issued by the State Bank of Pakistan except for Shirkatuimilk financing - Autos The SBP vide its letter no BPRD / BLRD - 03 / I 6877 dated October 15, 2009 has allowed relaxation to the Bank from recognising general provision against Shirkatuimilk financ Autos on the condition that the facility will be categorised as "Loss" on the 180th day from the date of default. In this regar vide its letter no BPRD / BRD - 04 / DIB / 2013 / 1644 dated February 12, 2013 has decided that the exemption from general res requirement shall only be valid till classified Auto Financing portfolio of the Bank remains upto 5% i.e, i f the classif Financing portfolio increases beyond the 5% threshold, the exemption shall stand withdrawn from that point of time. In addition, the Bank has also maintained a general provision of Rs 314 million (December 31, 2019: Nil) against financing mad prudent basis, in view of the prevailing economic conditions. This general provision is in addition to the existing require Prudential Regulations. 10.13 The bank has also allowed relaxation amounting to Rs, 44,039 million in repayment of principal and / or profit in terms of COVID 19 relief circulars, Note 11 F I X E D ASSETS Capital work-in-progress Property and equipment Right-of-use assets 11.1 June 30, December 31, 2020 2019 (Un-Hudited) (Audited) — (Rupees in '000) ~ 24,982 1,364417 2.760,072 4,149,371 78,326 1,244,237 2,965.851 4,288.414 11,323 13,659 24,982 38,4«5 39,841 78,326 Capital work-in-progress Civil works Equipment June 30, June 30, 2020 2019 (Un-audited) (Un-audited) — (Rupees in '000) — 11.2 Additions to fixed assets Property and Equipment (Including transfer from CWIP) Furniture and fixtures Electrical, office and computer equipment Vehicles Leasehold improvements 22,641 180,116 _ 73,109 275,866 1,862 100,486 36,991 7,191 146,530
15. June 30 , December 31, 2020 2019 (Un-audited) (Audited) — (Rupees in '000) — 12 INTANGIBLE ASSETS Capital work-in-progress Computer software 12.1 70,217 54,767 215,361 285,578 149,295 204,062 Capital work-in-progress Advance to suppliers 70.217 June 30, 2020 (Un-audited) 12.2 Additions to intangible assets (Rupees in '000) — Directly purchased (including transfer from CWIP) 13 9^ ^^^3 O T H E R ASSETS Advances, deposits and other prepayments Mark to market gain on forward foreign exchange contracts Acceptances Commission receivable Others Less: Provision held against other assets n.i 5,432,336 148,998 692,708 197,472 2,674,764 170,274 126,467 3.993.851 74,051 9,443,019 6.813,996 <1,746) 635.908 87.102 1,718,925 178,978 125.181 (1.746) 9,441,273 6,812,250 1,746 1,746 Provision held against other assets Others - Trackers 14 69.324 December 31, June 30, 2019 2020 (Audited) (Un-audited) — (Rupees in '000) — Profit / return accrued in local currency - net Profit / return accrued in foreign currencies - net 13.1 June 30. 2019 (Un-audited) BILLS PAYABLE In Pakistan Outside Pakistan 2 J05,056 9,590 2J14.646 2,963,411 8,896 2.972.307
16. Note 15 DUE TO F I N A N C I A L June 30 , December 31, 2020 2019 (Un-auditcd) (Audited) — (Rupees in '000> — INSTITUTIONS Secured Musharaka &om the State Bank of Pakistan under Islamic Export Refinance Scheme 15.1 9,25035 - under Islamic Long Term Finance Facility 15.2 1,221,592 - under Islamic Finance Facility For Renewable Energy 15.3 148,948 - under Payment of Wages and Salaries Refinance Scheme 15.4 763,833 6,897,280 Refinance from State Bank o f Pakistan 916,623 Unsecured Mushaika borrowings Wakala borrowings 1,500,000 IU84,678 5O0.QQ0 9.813.9Q3 15.1 These Musharaka are on a profit and loss sharing basis having maturity between July 08, 2020 to December 23, 2020 (Decemb 2019: January 07, 2020 to June 23, 2020) and are secured against demand promissory notes executed in favour of the SBP. A l Rs. 9,778 million (December 31, 2019: Rs. 8,107 million) has been allocated to the Bank by SBP under Islamic Export R 15.2 These are on a profit and loss sharing basis having maturity between September 14, 2020 to December 08, 2026 (December 3 1 February 02, 2024 to December 08, 2026) and are secured against demand promissory notes executed in favour of the SBP. A l Rs. 4,831 million (December 3 1 . 2019, 2,471 million) has been allocated to the Bank by SBP under Islamic Long Tenn F 15.3 These are on a profit and loss sharing basis having maturity between February I I , 2030 to June 04, 2030 (December 31, 2019: are secured against demand promissory notes executed m favour o f the SBP. A limit o f Rs. 5,416 mdlion (December 31, 2019: N been allocated to the Bank by SBP under Islamic Financing Facility For Renewable Energy. 15.4 These are on a profit and loss sharing basis having maturity between October 01, 2022 to June 29, 2023 (December 31, 2019: are secured against demand promissory notes executed in favour o f die SBP. A limit of Rs, 3,353 million (December 31. 2019: been allocated to the Bank by SBP under Islamic Refinance Scheme for payment of Wages and Salaries, June 30, December 31, 2020 2019 (Un-audited) (Audited) — (Rupees in'000) — 15.5 Particulars of due to fioancial institutions with respect to currencies In local currency [n foreign currency 11,384,678 11384,678 9.813,903 9,813.903
17. DEPOSITS A N D O T H E R A C C O U N T S December 31 .2019 (Audited) June 30,2020 (Un-audited) I n foreign currencies I n local currency b Total In local currency (Rupees i n foreign Total currencies 000) Customers Current deposits 41,825,918 14,177,130 56,003,048 40,074,829 11,994,495 52,069,324 Savings deposits 67,577,287 7,334,137 74,911,424 64,831,358 6,610,954 71,442,312 Term deposits 41.616,841 11,440,904 53,057,745 45,860,066 11,225,086 58,085,152 12,044.002 7,203,371 196,016,219 158,969,624 29,830,535 188,800,159 383,040 479,337 14,087 37,943,526 16,134,765 12,044,002 Others 163,064,048 32,952,171 Current deposits 370,239 12,801 Savings deposits 37,943,526 7.203,371 Financial insdtutions 2,908,948 2,908,948 Term deposits 41,222,713 204.286,761 12,801 32,964,972 41,235,514 237.251,733 4.523,725 4,523,725 14,087 21,137,827 180,107,451 Nole June 30, December 3 1 , (Audited) — Additional Tier (Sukuk 17.1 Tier I I Sukuk 7.1 209,952.073 2019 (Un-audited) S U B O R D I N A T E D S U K U K( R u p e e s i n ' 0 0 0 ) 21,151.914 29.844,622 2020 7 493,424 16,134,765 17.2 3,120,000 4,000,000 7,120,000 3,120,000 4,000,000 7.120,000 I n December 2018, the Bank issued regulatory Shari'a compliant perpetual, unsecured, subordinated privately placed Additional Tier Mudarabaof Rs. 3,120 million as instrument o f redeemable ci^jital under section 66 o f the Companies Act, 2017. The brief description of A + (Single A - Plus) by JCR-VIS Credit Rating Company Limited (formerly JCR-VIS Credit Rating Oedit rating Limited). Tenor Profit paymeit Perpetual frequency Monthly in arrears Redemption Perpetual The Mudaraba Profit is computed under General Pool on the basis o f profit sharing ratio and Expected periodic profit amount (Mudaraba wei^tages announced by the Bank under the SBP guidelines o f pool management Last onnoimced prof profit amount) on the Sukuk is 13.03% per annum. The Bank may call Additional Tier t Sukuk with prior approval o f SBP on or after five years from Call option issue. The Additional Tier I Sukuk, at the option o f the SBP, w i l l be fully and permanently converted i shares upon the occurrence o f a point of non-viability trigger event as determined by SBP or f Loss absorbency reason as may be directed by SBP, Profit and/or redemption amount can be held back in respect o f the Additional Tier I Sukuk, i f su Lock-in-clause 7.2 will result in a shortfall in the Issuer's minimum capital or capital adequacy ratio requirement In JiUy 2017, the Bank issued regulatory Shariah compliant unsecured, subordinated privately placed Tier I I Sukuk based on Mudaraba of R as instniment of redeemable capital under section 66 o f the Companies Act, 2017. The brief description o f sukuk is as follows: A A - (Double A A - Minus) by JCR-VIS Credit Rating Company Limited (formeriy JCR-VIS Credit Rati Credit rating Company Limited). Tenor Profit payment Redemption 10 years form the isstie date frequency Semi-annually in arrears On the tenth anniversary from the issue date o f sukuk The Mudaraba Profit is in accordance w i t h die agreed profit sharing ratios / weightages assigned Expected periodic profit amount (Mudaraba from time-to-time caincidit^ with the relevant profit distribution frequency for the relevant pro profit amount) period. Last announced profit rate on the sukiJc is 14% per annum. Call option The Bank may call Tier 11 Sukuk with prior approval of SBP on or after five years from the date o The Tier I I Sukuk, at the option o f the SBP, w i l l be fully and permanently converted into common Loss absorbency the occurrence o f a point o f non-viability trigger event as determined by SBP or for any other rea directed by SBP. Lock-in-clausc Ptofit and/or redemption amount can be held back in respect of the Tier 11 Sukuk, i f such payment in a shortfall in the Issuer's minimum c o i t a l oi capital adequacy ratio requirement.
18. June 30 ,2020 (Un-auditcd) 18 DEFERRED T A X Recognised in A t Jan 1,2020 P&L LUBILITIES Recognised in A t June 30, OCI 2020 (Rupees ia '000) Taxable temporary difTerences on: Accelerated tax depreciation and amortisation Provision against twn-performing Islamic financing and related assels Surplus on revaluation of investments Deductible temporary dl^erences on: Provision against other assets Deficit on defined benefit plan 17,028 (9,019) 75,977 681,275 774,280 9,661 642 8,009 (455,148) (455,148) (611) (23,502) (24,113) (611) (23,502) (24,113) 750,167 85,638 226,127 319,774 642 (455.148) 295,661 December 31, 2019 (Audited) AtJan 1,2019 R « = 3 f « ^ R e c o g n i s e d in A,Dec3i,2019 (Rupees in '000) Taxable temporary differences on: Accelerated tax depreciation and amortisation Provision against non-performing Islamic financing and related assets Surplus / (deficit) on revaluation of investments Deductible temporary differences on: Provision against other assets Deficit on defined benefit plan 36,007 (34,893) (441,897) (440,783) (6.273) (13,257) (19,530) (460,313) (18,979) 17,028 110,870 91,891 1,123,172 1,123,172 5,662 5,662 97,553 (10.245) (10,245) 1,112,927 75,977 681.275 774.280 (611) (23.502) (24,113) 750,167 June 30, December 31, 2020 2019 (Un-a«ditcd) (Audited) — (Rupees in '000) — OTHER LIABILITIES Profit / return payable in local currency Profit / return payable in foreign currencies Deferred profit murabaha / musawEimah income Accrtied expenses Advance from financing customers Mark to market loss on forward foreign exchange contracts Acceptances Current taxation (provisions less payments) Security deposits against Islamic fmancing and related assets Ijarah (lease) liabilities Payable to dealers, contractors, etc. Workera Welfare Fund payable Withholding tax payable Payable to Employees Old Age Benefit Institution (EOBI) Others 1,862,919 179,571 1,648,284 807,200 888,863 14,610 2,674,764 217,311 60,715 2,600,039 118,478 350,718 50,474 103.115 603,574 12,180,835 2,113,271 51,664 1.972,074 723,721 958,530 540,182 1,718,925 84,958 38,872 2,704,620 175,114 290,973 47,252 92,509 354,869 11,867,534 :0 SURPLUS ON REVALUATION OF INVESTMENTS Surplus on revaluation ofAvailable-for-salc Sukuk Certificates Less: Related deferred lax liability securities - net 646,077 (226,127) 1,946,499 (681.275)
19. 21 CONTINGENCIES AND COMMITMENTS June 30 , 2020 Note (Un-audited) December 3 1 , 2019 (Audited) — (Rupees i n 'OOO) Guarantees 21.1 Commitments 21.1 21.2 14,823,73 45,469,480 60,293,217 Guarantees Financial guarantees Performance 24,647 guarantees Other guarantees 21.2 15,260,859 33,379,997 48,640,856 — 24,534 4,167,716 4,080,568 11,068,496 10,718.635 15,260,859 14,823.737 20,380,123 24,588,918 Commitments D o c u m e n t a r y credits a n d s h o r t - t e r m t r a d e - r e l a t e d transactions Import letters o f credit C o m m i t m e n t s i n respect of: - Forward foreign exchange contracts - net 21.2.1 - Islamic linancing and related assets 6,845,548 5,923,000 14,540,146 5,930,387 C o m m i t m e n t s f o r a c q u i s i t i o n of: - Fixed assets 100,877 - Intangible assets 130,449 33,379,997 283,704 126,325 45,469,480 21.2.1 C o m m i t m e n t s i n respect o f f o r w a r d foreign exchange contracts - net 21.3 Purchase 13,948,677 29,644,778 Sale 7,103,129 6,845,548 15,104,632 14,540,146 Tax contingencies The income tax authorities have amended assessment orders o f the Bank for prior years including the tax disallowances were mainly due to reversal o f provision against fmancing, provision against investments and Fund. The Bank has filed appeals before the various appellate forums against these amendments. For the ta authorities have issued a notice to amend assessment against the adjustment o f m i n i m u m tax paid in prior yea Rs. 211.48 m i l l i o n . The management o f the Bank approached Sindh H i g h Court and subsequently the Honourabl Court o f Pakistan against the order o f the Sindh H i g h Court. The Honourable Supreme Court o f Pakistan has appeal. The appeal is expected to be fixed soon. The management o f the Bank is confident that the appeals favour o f the Bank in respect o f the aforementioned matters.
20. H a l f year Halfyear ended June ended June 30 ,2020 30, 2019 (Un-audited) Rupees i n '000 22 PROFIT / RETURN O n Islamic financing EARNED and related assets to customers O n investments i n available-for-sale 23 securities 1,819,463 103,939 103,939 O n deposits I placements w i t h financial institutions 621,209 510.413 14,964^79 11,681.430 PROFIT / RETURN EXPENSED 7,619,760 5,573,437 Subordinated s u k u k 499,103 411,684 D u e to financial institutions 239,409 344,822 Finance cost o n Ijarah (lease) l i a b i l i t i e s 176^78 172,647 Cost o f foreign currency swaps 263,517 258,867 8^798,067 6,761.457 266312 328,585 FEE & COMMISSION INCOME Consumer finance related fees Credit related fees 65,002 52,642 Investment b a n k i n g fees SQ350 46,567 B r a n c h b a n k i n g customer fees 37^26 53,304 C a r d related fees 89319 105,278 C o m m i s s i o n o n trade 107,052 110,568 C o m m i s s i o n o n guarantees 31,287 29,987 C o m m i s s i o n o n cash 19,310 25,015 management C o m m i s s i o n o n remittances i n c l u d i n g h o m e remittances 9,781 7,856 C o m m i s s i o n o n bancassurance 4,770 36,062 Rebate income Others 25 9,247,615 2,366,360 O n investments i n held-to-maturity securities Deposits and other accounts 24 11,872,771 GAIN ON 46306 54,293 726 1,354 727.441 851.511 982 271 648 980 SECURITIES Realised Federal G o v e r n m e n t securities 26 OTHER INCOME G a i n o n sale o f f i x e d assets - net
21. H a If yea r Half year ended June ended June 30 ,2020 30,2019 (Un-auditcd) Rupees in '000 27 O P E R A T I N G EXPENSES Total compensation expense Property expense Takaful charges Utilities cost Security Repair & maintenance (including janitorial charges) Depreciation Depreciation on right-of-use assets 1,516,636 1,385,685 584 734 148,998 113,821 130,443 61,586 48,357 368,106 741,452 43,398 49,067 326,916 629,161 150.561 68.483 119,576 41,144 44,883 25377 48,676 31,176 56.524 78,603 Information teclinology expenses Software maintenance Hardware maintenance Depreciation Amortisation Networking and connectivity charges Outsourced services cost Takaful charges Others 63323 15,033 581 684 13,082 594 472 368,925 311,244 4,864 6,865 3,445 7,206 Other operating expenses Directors' fee and allowances Fees and allowances to Shari'a Board members 11,410 Legal and professional charges Outsourced services cost 29.618 55,655 Travelling and conveyance NIFT clearing charges 20,713 18,008 Depreciation Traming and development 61,633 63,617 7,652 3,690 16,482 Postage and courier charges Commimications Stationaiy and printing Marketing, advertising and publicity Auditors' remimeration Brokerage, commission and bank charges Tracker related charges Cash u-ansportation charges Repdr and maintenance Subscription fees Takaful charges Deposit Premium Cost Others 17.236 104395 59,897 57,492 2,875 190,755 80398 44,403 24,734 15,438 70,257 40,186 44,182 3,600 137,004 87,525 50,770 47,966 45^51 9367 29,483 50,829 41,928 9,021 17,025 60,134 135,042 111,794 1,039,198 861,047 3.666,210 3,187,137
22. Halfyear Halfyear ended June ended June 30 ,2020 30,2019 (Un-audited) Rupees in '000 28 OTHER CHARGES Penalties imposed by State Bank o f Pakistan 29 42 3,807 PROVISIONS & W R I T E OFFS - N E T Provision against Islamic financing and related assets - net Provision for diminution in the value o f investments 30 10.12.1 606,079 322,094 606,079 1,815 323,909 TAXATION Current Prior years Deferred 1,141,711 1,082,057 98,367 (52,356) 1,128.068 642 1,142353 Half year ended June 30,2020 31 B A S I C A N D D I L U T E D E A R N I N G S PER S H A R E Half year ended June 30.2019 (Un-audited) Rupees in '000 Profit after taxation for the period 1,464,755 1,783314 (Number) Weighted average number o f ordinary shares 1,165328,776 1,165,228,776 (Rupees) Earning per share - basic and diluted 32 1.53 Halfyear Halfyear ended June ended June 30,2020 30,2019 (Un-audited) Rupees in '000 CASH A N D C A S H E Q U I V A L E N T S Cash and balance with treasury banks Balance with other banks Overdrawn nostros 1.26 22,718,185 7 1366373 15 23,984,458 24,141,671 9,348332 (2.409) 33,487,594
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24. 34 30 , L 4,654,601 (3,5U 685,523 (1,794,586) 671,512 4,9[8,24i 233,»66 900,900 (533,646) ,915) ,132) E'roviiioQS (611,781) 648 1,091,730 (476) 7,157,941 ,336,705) (110,031) (355.608) ,135) (95,637) 117,999 ,559 1,131 ,217) (119,119) ,155,318) ,735 (3.727.419) .444) ,377) ,973 849.696 ,784 ,2611,460 (313,621) 510 ,266,273 (314,097) 17,812,941 ,596,481 108,325,067 43,991,579 ,824,755 9,835 ] ] 5,647 ,640 33,351,093 ,784 .173,017 1,990 ,444 3,748 73,906 6S 104.614,569 770,686 .710,308 ,798 (286,564) ,777,654 ,817 111 29^86,253 ,430 19,199 ,033 ,187,131 73,465,419 434,358 140,709,946 ,600,221 73,465,419 1^60 13.322 237,251,733 139,011 ,00 115,430 186,453384 11 3,950,038 65,328,250 73(»,725 3,963 13 1,596,411 ,177 ,311,197 ,079) ,915,8*7 ,239 146,027 ,898,471 .017,411 419,203 69^17^74 7 J 18,777 11,631,671 30^00,444 411,357.499 13,100 434,358 .640 6,625 19388,680 7,110,000 398,777 9 1 .aa8 (1 +4 4 .078) (1 1 ,711 3
25. iS ! u,m.m .»a IS 3T300 S3371 S
26. CAPITAL ADEQUACY , LEVERAGE RATIO & LIQUIDITY June 30, December 3 1 , 2020 REQUIREMENTS 2019 (Un-audited) (Audited) Rupees i n '000 M i n i m u m Capital Requirement (MCR): Paid-up capital 11,652,288 11.652,288 22,409,570 20,709,655 C a p i t a l Adequacy R a t i o ( C A R ) : Eligible Common Equity Tier I (CET I ) Capital Eligible Additional Tier I ( A D T I) Capital Total Eligible Tier I Capital 3,120,000 3,120,000 25,529,570 23,829,655 4,924,809 5,398,283 30,454,379 29,227,938 Credit Risk 160,015,589 150,016,588 Market Risk 258,640 819,371 19,820,569 19,820,569 180,094,798 170.656,528 Eligible Tier n Capital Total Eligible Capital (Tier I + Tier I I ) R i s k W e i g h t e d Assets ( R W A s ) : Operational Risk Total R W A s C o m m o n E q u i t y T i e r I C a p i t a l Adequacy T i e r I C a p i t a l Adequacy T o t a l C a p i t a l Adequacy Leverage Ratio Ratio Ratio 12.44% 12.14% 14.18% 13.96% 16.91% 17.13% (LR): Eligible Tier I Capital Total Exposures Leverage 25,529,570 350,421,840 7.29% 23,82 311,597,28 7.65% L i q u i d i t y Coverage ( L C R ) : Total H i g h Quality L i q u i d Assets Total Net Cash Outflow L i q u i d i t y Coverage 61,781,485 27,680,858 223.19% 55,98 27,417,4 204.19% Net Stable F u n d i n g Ratio ( N S F R ) : Total Available Stable Funding 241,660,399 212,998 Total Required Stable Funding 208,722,640 195,663, Net Stable F u n d i n g Ratio 115.78% 108,86%
27. 37 DATE OF AUTHORISATION FOR This condensed ISSUE i n t e r i m financial i n f o r m a t i o n was authorised for issue o n 2 0 JUL 2020 __ b Directors o f the B a n k . 38 GENERAL Figures have been rounded o f f to the nearest thousand Rupees, unless otherwise stated. anciDl Officer Director/ Director Director