Dubai Islamic Bank Pakistan: Condensed Interim Financial Information - 30 September 2021

Transcription

1. Dubai Islamic Bank Pakistan Limited Condensed Interim Financial Information For the period ended September 30 , 2021
2. Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Financial Position As at September 30 , 2021 Note December 31, September 30, 2020 2021 (Un-audited) (Audited) ----- Rupees in '000 ----- ASSETS Cash and balances with treasury banks Balances with other banks Due from financial institutions Investments Islamic financing and related assets Fixed assets Intangible assets Deferred tax assets Other assets 6 7 8 9 10 11 12 13 19,357,562 2,018,627 3,523,946 56,741,605 224,514,768 4,606,436 419,607 10,326,504 321,509,055 19,096,891 3,279,935 2,397,516 66,579,570 199,416,405 3,685,492 321,916 8,484,438 303,262,163 4,262,805 29,430,312 238,883,237 7,120,000 1,657 14,660,539 294,358,550 27,150,505 4,246,241 17,350,949 237,553,365 7,120,000 353,054 12,014,856 278,638,465 24,623,698 11,652,288 3,006,074 693,786 11,798,357 27,150,505 11,652,288 2,474,851 825,345 9,671,214 24,623,698 LIABILITIES Bills payable Due to financial institutions Deposits and other accounts Subordinated sukuk Deferred tax liabilities Other liabilities 14 15 16 17 18 19 NET ASSETS REPRESENTED BY Share capital Reserves Surplus on revaluation of investments Unappropriated profit 20 21 CONTINGENCIES AND COMMITMENTS The annexed notes 1 to 38 form an integral part of this condensed interim financial information. President & CEO Chief Financial Officer Director Director Director
3. Dubai Islamic Bank Pakistan Limited Condensed Interim Profit and Loss Account (Un-Audited) For the quarter and nine-months period ended September 30, 2021 Note Profit / return earned Profit / return expensed Net Profit / return 22 23 Quarter Nine months Quarter Nine months ended September 30, 2021 period ended September 30, 2021 ended September 30, 2020 period ended September 30, 2020 --------------------- Rupees in '000 --------------------5,769,402 (2,634,761) 3,134,641 16,573,610 (7,773,624) 8,799,986 5,686,303 (2,837,103) 2,849,200 20,650,582 (11,635,170) 9,015,412 OTHER INCOME Fee and commission income Dividend income Foreign exchange income Gain on securities Other income Total other income 24 25 26 Total income 441,054 237,549 216,324 4,159 899,086 1,419,149 735,821 484,692 1,389 2,641,051 401,177 184,006 161 585,344 1,128,618 546,665 982 809 1,677,074 4,033,727 11,441,037 3,434,544 10,692,486 (2,087,124) (38,276) (16) (2,125,416) (6,043,243) (104,534) (3,031) (6,150,808) (1,778,650) (22,313) (270) (1,801,233) (5,444,860) (82,057) (312) (5,527,229) 1,908,311 5,290,229 1,633,311 5,165,257 OTHER EXPENSES Operating expenses Workers Welfare Fund Other charges Total other expenses 27 28 Profit before provisions Provisions and write offs - net Extra ordinary / unusual items 29 PROFIT BEFORE TAXATION Taxation (429,180) 1,479,131 30 PROFIT AFTER TAXATION (944,008) 4,346,221 (462,175) 1,171,136 (1,068,254) 4,097,003 (578,775) (1,690,107) (455,720) (1,598,073) 900,356 2,656,114 715,416 2,498,930 --------------------------- Rupee(s) --------------------------Basic & diluted earnings per share 31 0.77 0.61 2.28 2.14 The annexed notes 1 to 38 form an integral part of this condensed interim financial information. President & CEO Chief Financial Officer Director Director Director
4. Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Comprehensive Income (Un-Audited) For the quarter and nine-months period ended September 30, 2021 Quarter Quarter Nine months Nine months ended period ended ended period ended September 30, September 30, September 30, September 30, 2020 2020 2021 2021 ------------------------ Rupees in '000 -----------------------Profit after taxation for the period 900,356 2,656,114 715,416 2,498,930 (217,966) (1,063,240) Other comprehensive loss Items that may be reclassified to profit and loss account in subsequent periods: Movement in revaluation of investments - net of tax (64,506) (131,559) Items that will not be reclassified to profit and loss account in subsequent periods: Movement in defined benefit obligation Total comprehensive income 835,850 2,252 2,526,807 497,450 1,435,690 The annexed notes 1 to 38 form an integral part of this condensed interim financial information. President & CEO Chief Financial Officer Director Director Director
5. Dubai Islamic Bank Pakistan Limited Condensed Interim Statement of Changes in Equity (Un-Audited) For the nine-months period ended September 30, 2021 Share capital Statutory reserve Surplus on revaluation of investments Unappropriated profit Total --------------------------------------------- Rupees in '000 --------------------------------------------Balance as at January 01, 2020 11,652,288 1,896,073 1,265,224 7,349,049 22,162,634 2,498,930 2,498,930 2,498,930 (1,063,240) 1,435,690 Total Comprehensive income for the period Profit after taxation - - Other comprehensive loss - net of tax - - Transfer to statutory reserve - Balance as at September 30, 2020 11,652,288 499,786 2,395,859 (1,063,240) (1,063,240) 201,984 (499,786) - 9,348,193 23,598,324 394,961 394,961 7,052 402,013 630,413 1,025,374 Total Comprehensive income for the period Profit after taxation - - Other comprehensive income - net of tax - - Transfer to statutory reserve - 78,992 Balance as at December 31, 2020 11,652,288 2,474,851 623,361 623,361 825,345 (78,992) - 9,671,214 24,623,698 2,656,114 2,656,114 2,252 2,658,366 (129,307) 2,526,807 Total Comprehensive income for the period Profit after taxation - - Other comprehensive (loss) / income - net of tax - - Transfer to statutory reserve - Balance as at September 30, 2021 11,652,288 531,223 3,006,074 (131,559) (131,559) 693,786 (531,223) 11,798,357 The annexed notes 1 to 38 form an integral part of this condensed interim financial information. President & CEO Chief Financial Officer Director Director Director 27,150,505
6. Dubai Islamic Bank Pakistan Limited Condensed Interim Cash Flow Statement (Un-Audited) For the nine-months period ended September 30, 2021 Note Nine months Nine months period ended period ended September 30, September 30, 2020 2021 ----- Rupees in '000 ----- CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation Adjustments for: Depreciation Depreciation on right-of-use assets Amortisation Finance cost on Ijarah (lease) liabilities Gain on securities Gain on sale of fixed assets Provisions and write offs - net 27 27 27 23 25 26 29 Decrease / (increase) in operating assets Due from financial institutions Islamic financing and related assets Others assets (Decrease) / increase in operating liabilities Bills payable Due to financial institutions Deposits and other accounts Other liabilities (excluding current taxation) Income taxes paid Net cash (used in) / generated from operating activities 4,346,221 4,097,003 242,875 664,982 52,410 227,879 (484,692) (1,389) 944,008 1,646,073 5,992,294 235,499 594,463 38,741 265,631 (982) (809) 1,068,254 2,200,797 6,297,800 (1,126,430) (26,044,117) (1,002,767) (28,173,314) 5,590,405 (10,944,258) (2,000,171) (7,354,024) 16,564 12,076,912 1,329,872 438,343 13,861,691 (8,319,329) (4,949) 7,486,400 24,856,021 (228,056) 32,109,416 31,053,192 (1,532,646) (9,851,975) (1,899,356) 29,153,836 10,190,250 (240,351) 19,431 (150,102) 9,819,228 (27,437,859) 4,000,000 (323,596) 1,818 (158,023) (23,917,660) (970,341) (772,290) CASH FLOW FROM INVESTING ACTIVITIES Net investments in available for sale securities Net investments in held to maturity securities Investments in fixed assets Proceeds from sale of fixed assets Investments in intangible assets Net cash generated from / (used in) investing activities CASH FLOW FROM FINANCING ACTIVITIES Payment of Ijarah (lease) liabilities against right-of-use assets (Decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 32 (1,003,088) 4,463,886 22,376,826 21,373,738 20,664,381 25,128,267 The annexed notes 1 to 38 form an integral part of this condensed interim financial information. President & CEO Chief Financial Officer Director Director Director
7. Dubai Islamic Bank Pakistan Limited Notes to and forming part of the Condensed Interim Financial Information (Un-Audited) For the nine-months period ended September 30, 2021 1. STATUS AND NATURE OF BUSINESS 1.1 Dubai Islamic Bank Pakistan Limited (the Bank) was incorporated in Pakistan as an unlisted public limited company on May 27, 2005 under the Companies Act, 2017 to carry out the business of an Islamic Commercial Bank in accordance with the principles of Islamic Shari'a. 1.2 The State Bank of Pakistan (the SBP) granted a “Scheduled Islamic Commercial Bank” license to the Bank on November 26, 2005 and subsequently the Bank received the Certificate of Commencement of Business from the Securities and Exchange Commission of Pakistan (the SECP) on January 26, 2006. The Bank commenced its operations as a scheduled Islamic Commercial Bank with effect from March 28, 2006 on receiving certificate of commencement of business from the SBP. 1.3 VIS Credit Rating Company Limited on June 30, 2021 has reaffirmed the Bank's medium to long-term rating at 'AA' (Double A) and the short term rating at 'A-1+' (A-One Plus) with stable outlook. 1.4 The Bank is operating through 235 branches as at September 30, 2021 (December 31, 2020: 235 branches). The registered office of the Bank is situated at Hassan Chambers, DC-7, Block-7 Kehkashan, Clifton, Karachi. The Bank is a wholly owned subsidiary of Dubai Islamic Bank PJSC, UAE (the Holding Company). 2. BASIS OF PRESENTATION 2.1 The Bank provides Islamic financing and makes investments mainly through Murabaha, Musharaka, Running Musharaka, Shirkatulmilk, Istisna cum Wakala, Wakala Istithmar and export refinance under Islamic export refinance scheme of SBP and other Islamic modes as briefly explained in the annual financial statements for the year ended December 31, 2020. The transactions of purchases, sales and leases executed under these arrangements are not reflected in this condensed interim financial information as such but are restricted to the amount of facility actually utilized and the appropriate portion of rental / profit thereon. The income on such Islamic financing and related assets is recognised in accordance with the principles of Shari'a. However, income if any, received which does not comply with the principles of Shari'a is recognised as charity payable if so directed by the Shari'a Board / Resident Shari'a Board Member. 3. STATEMENT OF COMPLIANCE 3.1 This condensed interim financial information has been prepared in accordance with approved accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of: - International Accounting Standards (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017; - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan, as are notified under 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 of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the SBP and the SECP differ with the requirements of the IAS 34, requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.
8. 3 .2 Significant accounting policies The significant accounting policies adopted in the preparation of this condensed interim financial information are consistent with those applied in the preparation of the annual audited financial statements of the Bank for the year ended December 31, 2020. 3.2.1 Amendments to approved accounting standards that are effective in the current period There are certain other new and amended standards that became effective during the period (enumerated in note 2 to the annual audited financial statements of the Bank for the year 2020). However, such standards did not have any significant effect on this condensed interim financial information. 3.2.2 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 are not yet effective (enumerated in note 2 to the annual audited financial statements of the Bank for the year 2020) and are not expected to have any material impact on the Bank's condensed interim financial information in the period of their initial application. With regards to IFRS 9 implementation, the SBP vide its BPRD Circular Letter No. 24 of 2021 dated July 05, 2021 has directed the banks in Pakistan to implement IFRS 9 with effect from January 01, 2022. 4. BASIS OF MEASUREMENT 4.1 Accounting convention This condensed interim financial information have been prepared under the historical cost convention, except that certain investments, foreign currency balances and commitments in respect of certain foreign exchange contracts have been marked to market and carried at fair value. 4.2 Functional and presentation currency This condensed interim financial information have been presented in Pakistani Rupees, which is the Bank's functional and presentation currency. 4.3 Critical accounting estimates and judgments All critical accounting estimates adopted in the preparation of this condensed interim financial information are same as that applied in the preparation of the annual audited financial statements for the year ended December 31, 2020. 5. FINANCIAL RISK MANAGEMENT The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the financial statements for the year ended December 31, 2020. These risk management policies continue to remain robust and the Bank is fully aware of the risks associated with COVID-19 and on an ongoing basis conducts assessment of its portfolio and operations to ensure the risks are minimized.
9. Cash and balance treasury Banks 6 CASH AND BALANCES WITH TREASURY BANKS Note In hand Cash in HandLCY - local currency Cash in HandFCY - foreign currencies With State Bank of Pakistan in SBP BalanceLCY - local currency current accounts SBP Clearing - foreign Account currency - FCY current accounts - foreign currency deposit accounts SBP Current - Cash Account reserve 5 %account - FCY SBP Deposit - Special Account cash 6%reserve - FCYaccount SBP Current Account 5% - FCY With National Bank of Pakistan in NBP LCY - local currency current accounts December 31, September 30, 2020 2021 (Un-audited) (Audited) ------ (Rupees in '000) ------ 4,911,836 1,240,372 6,152,208 3,459,311 2,256,361 5,715,672 6.1 9,279,344 87,722 8,784,631 72,420 6.2 6.2 1,514,672 1,817,486 3,332,158 1,694,325 2,033,078 3,727,403 506,130 19,357,562 796,765 19,096,891 NBP LCY 6.1 The local currency current account is maintained with the State Bank of Pakistan (SBP) as per the requirements of Section 22 of the Banking Companies Ordinance, 1962. This section requires banking companies to maintain a local currency cash reserve in the current account opened with the SBP at a sum not less than 5% of its demand and time liabilities in Pakistan. 6.2 As per BSD Circular No. 15 dated June 21, 2008, cash reserve of 5% and special cash reserve of 6% are required to be maintained with SBP on deposits held under the New Foreign Currency Accounts Scheme (FE-25 deposits). These accounts are non-remunerative in nature. Balances with Other Banks 7 BALANCES WITH OTHER BANKS Note In Pakistan Current Account - in local- Inside currency Pakistan current account Current Account - in foreign - Inside currency Pakistan current - FCY account Deposit Account - in local- Inside currency Pakistan deposit account NBP FCY Outside Pakistan Current Account - in current - Outside account Pakistan 7.1 7.1 December 31, September 30, 2020 2021 (Un-audited) (Audited) ------ (Rupees in '000) ------ 562,197 613 562,810 943,830 277 10 944,117 1,455,817 2,018,627 2,335,818 3,279,935 This includes an amount of Rs. 31.59 million (December 31, 2020: Rs. 51.82 million) deposited with the holding company. 8 DUE FROM FINANCIAL INSTITUTIONS Comodity Murabaha Unsecured WakalaWakalah Placements Musharaka Musharaka Placements Note 8.1 8.2 December 31, September 30, 2020 2021 (Un-audited) (Audited) ------ (Rupees in '000) -----1,023,946 2,500,000 3,523,946 2,397,516 2,397,516 8.1 This carry expected yield of 0.05% (December 31, 2020: 0.02%) per annum with maturity at October 04, 2021 (December 31, 2020: January 04, 2021). 8.2 These carry expected yield ranging from 7.25% to 7.5% (December 31, 2020: Nil) per annum with maturity upto October 06, 2021 (December 31, 2020: Nil).
10. 9 9 .1 INVESTMENTS Investments by types: September 30, 2021 (Un-audited) December 31, 2020 (Audited) Cost / Provision Cost / Provision Surplus / Carrying Surplus / Carrying amortised for amortised for (deficit) value (deficit) value cost diminution cost diminution ----------------------------------------------------------- (Rupees in '000) ----------------------------------------------------------- Available-for-sale securities Federal Government securities Non-Government debt securities Foreign securities Total investments 9.2 2,519,843 43,116,660 10,057,064 55,693,567 (89,316) (89,316) 11,890 1,147,103 (21,639) 1,137,354 2,531,733 44,174,447 10,035,425 56,741,605 1,500,000 45,623,504 18,275,621 65,399,125 (89,316) (89,316) Provision for diminution in value of investments Note Opening balance Provision Charge for for diminution the periodin/ the yearvalue of investments Closing balance 9.2.1 (400) 1,212,713 57,448 1,269,761 1,499,600 46,746,901 18,333,069 66,579,570 September 30, December 31, 2020 2021 (Un-audited) (Audited) ------ (Rupees in '000) -----89,316 77,881 - 11,435 89,316 89,316 9.2.1 Particulars of provision against debt securities Category of classification December 31, 2020 (Audited) September 30, 2021 (Un-audited) *NPI Provision *NPI Provision -------------------- (Rupees in '000) -------------------Domestic Other Assets Especially Mentioned Substandard Doubtful Loss Overseas Total * NPI stands for non-performing investments. 89,316 89,316 89,316 89,316 89,316 89,316 89,316 89,316 - - - - 89,316 89,316 89,316 89,316
11. 10 ISLAMIC FINANCING AND RELATED ASSETS - NET Note Murabaha Musawamah Tijarah cum wakala Istisna cum Wakala Salam Islamic Export Refinance Scheme - SBP Other Islamic Refinance Schemes - SBP Wakala Istithmar Running Musharaka financing Shirkatulmilk - Housing Shirkatulmilk - Autos Shirkatulmilk - Fleet financing Shirkatulmilk - Others Diminishing Musharaka - Others Staff financing Islamic financing and related assets (gross) Provision against Islamic financing and related assets Specific General Islamic financing and related assets - net of provision 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.13 Performing Non-Performing Total September 30, December 31, September 30, December 31, September 30, December 31, 2020 2020 2020 2021 2021 2021 (Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited) ----------------------------------------------- (Rupees in '000) ----------------------------------------------21,031,839 3,399,394 7,039,618 11,569,257 1,183,266 15,167,283 12,746,082 26,051,828 36,263,046 11,178,641 26,107,696 5,932,784 13,694,649 29,952,182 2,351,059 223,668,624 (2,190,354) (2,190,354) 221,478,270 22,207,236 2,839,456 5,578,464 13,177,273 1,994,493 11,021,716 7,818,593 21,581,515 31,057,053 8,926,567 19,306,168 6,446,582 14,967,156 29,671,794 2,130,373 198,724,439 (1,912,859) (1,912,859) 196,811,580 379,094 165,063 192,000 550,947 136,322 8,000 416,156 655,901 535,491 380,975 152,284 2,525,669 641,722 47,743 6,787,367 1,564,003 117,761 714,160 316,413 397,772 328,295 274,945 1,898,143 27,159 48,784 5,687,435 (3,750,869) (3,750,869) (3,082,610) (3,082,610) 3,036,498 2,604,825 21,410,933 3,564,457 7,231,618 12,120,204 1,183,266 15,303,605 12,754,082 26,467,984 36,918,947 11,714,132 26,488,671 6,085,068 16,220,318 30,593,904 2,398,802 230,455,991 (3,750,869) (2,190,354) (5,941,223) 224,514,768 23,771,239 2,957,217 5,578,464 13,891,433 1,994,493 11,021,716 7,818,593 21,897,928 31,057,053 9,324,339 19,634,463 6,721,527 16,865,299 29,698,953 2,179,157 204,411,874 (3,082,610) (1,912,859) (4,995,469) 199,416,405 September 30, December 31, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --10.1 Murabaha Financing Inventory Advance 10.2 6,473,248 758,370 7,231,618 5,271,282 307,182 5,578,464 8,612,921 3,507,283 12,120,204 9,739,691 4,151,742 13,891,433 1,025,357 157,909 1,183,266 289,498 1,704,995 1,994,493 529,000 310,000 8,135,800 6,328,805 15,303,605 66,100 590,000 5,081,800 5,051,043 155,830 76,943 11,021,716 Salam Financing Advance 10.6 2,858,989 98,228 2,957,217 Istisna cum Wakala Financing Advance 10.5 3,491,358 73,099 3,564,457 Tijarah cum wakala Financing Inventory 10.4 5,615,009 17,458,558 697,672 23,771,239 Musawamah Financing Advance 10.3 6,545,039 14,165,239 700,655 21,410,933 Islamic Export Refinance Scheme - SBP Istisna - Advance Istisna - Financing Running Musharaka - Financing Wakala Istithmar - Financing Murabaha - Advance Murabaha - Financing
12. September 30 , December 31, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --10.7 Other Islamic Refinance Schemes - SBP Islamic Long Term Financing Facility -Diminishing Musharaka - Financing 3,290,167 2,253,306 Payment of Wages and Salaries Refinance Scheme -Shirkatulmilk - Financing -Running Musharaka - Financing -Murabaha - Financing -Murabaha - Advance 2,389,047 681,544 141,767 - 3,622,962 1,090,470 124,595 84,865 Islamic Temporary Economic Refinance Facility -Musharaka - Financing -Shirkatulmilk - Financing 4,368,718 374,926 21,164 - 1,507,913 12,754,082 621,231 7,818,593 11,536,532 177,600 11,714,132 9,197,469 126,870 9,324,339 22,828,874 3,659,797 26,488,671 17,074,482 2,559,981 19,634,463 5,585,870 499,198 6,085,068 6,249,580 471,947 6,721,527 16,220,318 16,865,299 228,130,475 2,325,516 230,455,991 203,870,742 541,132 204,411,874 Other Islamic Refinance Facilities -Musharaka - Financing 10.8 Shirkatulmilk - Housing Financing Advance 10.9 Shirkatulmilk - Autos Financing Advance 10.10 Shirkatulmilk - Fleet financing Financing Advance 10.11 Shirkatulmilk - Others Financing 10.12 Particulars of Islamic financing and related assets (gross) In local currency In foreign currencies 10.13 Islamic financing and related assets include Rs. 6,787.367 million (December 31, 2020: Rs. 5,687.435 million) which have been placed under non-performing status as detailed below: Category of Classification Domestic Other Assets Especially Mentioned Substandard Doubtful Loss December 31, 2020 September 30, 2021 (Audited) (Un-audited) Provision Non-Performing Provision held Non-Performing held ----------------------- (Rupees in '000) ----------------------70,792 262,041 1,791,688 4,662,846 6,787,367 25,662 987,247 2,737,960 3,750,869 3,553 50,540 260,698 5,372,644 5,687,435 8,584 12,989 3,061,037 3,082,610
13. 10 .14 Particulars of provision against Islamic financing and related assets: September 30, 2021 (Un-audited) December 31, 2020 (Audited) Specific General Total Specific General Total ---------------------------------------- (Rupees in '000) ---------------------------------------Opening balance 3,082,610 Charge for the period / year Reversals during the period / year 1,188,356 (520,097) 668,259 Amounts written-off Closing balance 3,750,869 1,912,859 277,495 277,495 2,190,354 4,995,469 1,465,851 (520,097) 945,754 5,941,223 2,738,605 551,435 (207,430) 344,005 3,082,610 133,058 2,871,663 1,779,801 1,779,801 2,331,236 (207,430) 2,123,806 1,912,859 4,995,469 10.14.1 As allowed by the SBP, the Bank has availed benefit of Forced Sale Value (FSV) amounting to Rs.2,138.17 million (December 31, 2020: Rs. 2,428.75 million) in determining the provisioning against non performing Islamic financings as at September 30, 2021. The additional profit arising from availing the FSV benefit - net of tax as at September 30, 2021 which is not available for distribution as either cash or stock dividend to shareholders amounted to Rs. 1,304.28 million (December 31, 2020: Rs. 1,578.69 million). 10.14.2 General provisioning is held against consumer finance portfolio in accordance with the requirements of the Prudential Regulations issued by the State Bank of Pakistan except for Shirkatulmilk financing - Autos. The SBP vide its letter no BPRD / BLRD - 03 / 2009 / 6877 dated October 15, 2009 has allowed relaxation to the Bank from recognising general provision against Shirkatulmilk financing - Autos on the condition that the facility will be categorised as "Loss" on the 180th day from the date of default. In this regard, the SBP vide its letter no BPRD / BRD - 04 / DIB / 2013 / 1644 dated February 12, 2013 has decided that the exemption from general reserve requirement shall only be valid till classified Auto Financing portfolio of the Bank remains upto 5% i.e. if the classified Auto Financing portfolio increases beyond the 5% threshold, the exemption shall stand withdrawn from that point of time. In addition to the existing general provision requirement under prudential regulation, the Bank has also maintained a general provision of Rs.2,014 million (December 31, 2020: Rs.1,764 million) against financing made on prudent basis, in view of the prevailing economic conditions. Note 11 FIXED ASSETS Capital work-in-progress Property and equipment Right-of-use assets 11.1 December 31, September 30, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --- 11.1 6,689 1,383,069 3,216,678 4,606,436 49,485 1,360,840 2,275,167 3,685,492 5,089 1,600 6,689 7,453 42,032 49,485 Capital work-in-progress Civil works Equipment September 30, September 30, 2020 2021 (Un-audited) --- (Rupees in '000) --11.2 Additions to fixed assets Furniture and fixtures Electrical, office and computer equipment Leasehold improvements Vehicles 18,180 193,273 64,893 6,801 283,147 24,739 240,394 87,613 352,746 December 31, September 30, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --12 INTANGIBLE ASSETS Capital work-in-progress - Advance to suppliers Computer software 110,046 309,561 419,607 97,215 224,701 321,916
14. 12 .1 September 30, September 30, 2020 2021 (Un-audited) --- (Rupees in '000) --- Additions to intangible assets Directly purchased (including transfer from CWIP) 13 Less: Provision held against other assets 34.4 - 4,186,904 125,053 1,252,297 103,621 239,947 2,349,243 100,036 129,083 8,486,184 (1,746) 8,484,438 4,254,237 8,568 4,262,805 4,238,196 8,045 4,246,241 13,094,915 9,402,906 Investment from the State Bank of Pakistan under Islamic Long Term Financing Facility under Payment of Wages and Salaries Refinance Scheme under Islamic Temporary Economic Refinance Facility Other Islamic Refinance Facilities 3,241,875 3,236,358 4,229,779 984,934 2,122,770 4,916,563 408,710 Unsecured Musharaka acceptance Overdrawn nostros 4,640,000 2,451 500,000 - 29,430,312 17,350,949 29,427,861 2,451 29,430,312 17,350,949 17,350,949 BILLS PAYABLE DUE TO FINANCIAL INSTITUTIONS Secured Musharaka from the State Bank of Pakistan under Islamic Export Refinance Scheme 15.1 #REF! 5,172,800 109,062 987,089 137,517 3,426,743 57,926 435,367 10,326,504 10,326,504 In Pakistan Outside Pakistan 15 118,588 December 31, September 30, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --- OTHER ASSETS Profit / return accrued in local currency - net Profit / return accrued in foreign currencies - net Advances, deposits and other prepayments Mark to market gain on forward foreign exchange contracts Current taxation (payments less provisions) Acceptances Commission receivable Others 14 137,271 Particulars of due to financial institutions with respect to currencies In local currency In foreign currencies
15. 16 DEPOSITS AND OTHER ACCOUNTS September 30 , 2021 (Un-audited) December 31, 2020 (Audited) In foreign In foreign In local currency Total In local currency Total currencies currencies ------------------------------------------------------------ (Rupees in '000) -----------------------------------------------------------Customers Current deposits Savings deposits Term deposits Others Financial institutions Current deposits Savings deposits Term deposits 62,740,471 90,733,465 29,556,914 5,759,899 188,790,749 15,814,836 8,685,116 6,615,149 31,115,101 78,555,307 99,418,581 36,172,063 5,759,899 219,905,850 53,425,406 80,408,915 37,172,369 8,784,309 179,790,999 14,133,682 9,175,796 10,717,224 34,026,702 67,559,088 89,584,711 47,889,593 8,784,309 213,817,701 414,442 13,904,437 4,622,848 18,941,727 207,732,476 35,660 35,660 31,150,761 450,102 13,904,437 4,622,848 18,977,387 238,883,237 316,442 17,799,775 5,566,898 23,683,115 203,474,114 52,549 52,549 34,079,251 368,991 17,799,775 5,566,898 23,735,664 237,553,365 Note 17 SUBORDINATED SUKUK Additional Tier I Sukuk Tier II Sukuk 17.1 17.2 December 31, September 30, 2020 2021 (Un-audited) (Audited) ---- (Rupees in '000) ---3,120,000 4,000,000 7,120,000 3,120,000 4,000,000 7,120,000 17.1 In December 2018, the Bank issued regulatory Shari'a compliant perpetual, unsecured, subordinated privately placed Additional Tier I Sukuk based on Mudaraba of Rs. 3,120 million as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of sukuk is as follows: Credit rating Tenor Profit payment frequency Redemption Expected periodic profit amount (Mudaraba profit amount) Call option Loss absorbency Lock-in-clause A+ (Single A - Plus) by VIS Credit Rating Company Limited. Perpetual Monthly in arrears Perpetual The Mudaraba Profit is computed under General Pool on the basis of profit sharing ratio and monthly weightages announced by the Bank under the SBP guidelines of pool management. Last announced profit rate on the Sukuk is 9.21% per annum. The Bank may call Additional Tier I Sukuk with prior approval of SBP on or after five years from the date of issue. The Additional Tier I Sukuk, at the option of the SBP, will be fully and permanently converted into common shares upon the occurrence of a point of non-viability trigger event as determined by SBP or for any other reason as may be directed by SBP. Profit and/or redemption amount can be held back in respect of the Additional Tier I Sukuk, if such payment will result in a shortfall in the Issuer’s minimum capital or capital adequacy ratio requirement. 17.2 In July 2017, the Bank issued regulatory Shariah compliant unsecured, subordinated privately placed Tier II Sukuk based on Mudaraba of Rs. 4,000 million as instrument of redeemable capital under section 66 of the Companies Act, 2017. The brief description of sukuk is as follows: Credit rating Tenor Profit payment frequency Redemption Expected periodic profit amount (Mudaraba profit amount) Call option Loss absorbency Lock-in-clause AA- (Double AA - Minus) by VIS Credit Rating Company Limited. 10 years form the issue date Semi-annually in arrears On the tenth anniversary from the issue date of sukuk The Mudaraba Profit is in accordance with the agreed profit sharing ratios / weightages assigned by the bank from time-to-time coinciding with the relevant profit distribution frequency for the relevant profit distribution period. Last announced profit rate on the sukuk is 8.15% per annum. The Bank may call Tier II Sukuk with prior approval of SBP on or after five years from the date of issue. The Tier II Sukuk, at the option of the SBP, will be fully and permanently converted into common shares upon the occurrence of a point of non-viability trigger event as determined by SBP or for any other reason as may be directed by SBP. Profit and/or redemption amount can be held back in respect of the Tier II Sukuk, if such payment will result in a shortfall in the Issuer’s minimum capital or capital adequacy ratio requirement.
16. 18 DEFERRED TAX LIABILITIES Deferred Tax Asset Taxable temporary differences on : Surplus on revaluation of investments Deductible temporary differences on: Accelerated tax depreciation and amortisation Provision against non-performing Islamic financing and related assets Provision against other assets Deficit on defined benefit plan September 30, 2021 (Un-audited) At January Recognised in Recognised in At September 01, 2021 P&L OCI 30, 2021 ------------------- (Rupees in '000) ------------------444,416 444,416 695 - (848) (848) 443,568 443,568 (22,573) - (21,878) (71,741) (611) (19,705) (91,362) (326,335) 611 (348,297) (2,252) (2,252) (398,076) (21,957) (441,911) 353,054 (348,297) (3,100) 1,657 December 31, 2020 (Audited) Recognised in Recognised in At Jan 1, 2020 At Dec 31, 2020 P&L OCI ------------------- (Rupees in '000) ------------------Taxable temporary differences on: Accelerated tax depreciation and amortisation Surplus on revaluation of investments Deductible temporary differences on: Provision against non-performing Islamic financing and related assets Provision against other assets Deficit on defined benefit plan 17,028 681,275 698,303 (16,333) (16,333) 75,977 (611) (23,502) 51,864 (147,718) (147,718) 750,167 (164,051) (236,859) (236,859) 3,797 3,797 (233,062) 695 444,416 445,111 (71,741) (611) (19,705) (92,057) 353,054 December 31, September 30, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --19 OTHER LIABILITIES Profit / return payable in local currency Profit / return payable in foreign currencies Deferred income murabaha / musawamah Accrued expenses Advance from financing customers Unrealized Mark toprofit market onloss forward on forward foreignforeign exchange exchange contracts contracts Acceptances Current taxation (provisions less payments) Security deposits against Islamic financing and related assets Ijarah (lease) liabilities Payable to dealers, contractors, etc. Workers Welfare Fund payable Payable to Employees Old Age Benefit Institution (EOBI) Others 1,111,813 39,362 2,130,696 707,017 1,373,925 110,954 3,426,743 265,811 279,420 3,181,037 683,958 493,598 130,670 725,535 14,660,539 1,105,687 52,108 1,859,707 739,702 1,030,405 29,688 2,349,243 198,691 2,317,006 957,794 389,065 114,237 871,523 12,014,856 20 SURPLUS ON REVALUATION OF INVESTMENTS Surplus on revaluation of Available-for-sale securities Sukuk certificates Less: Related deferred tax liability 1,137,354 (443,568) 693,786 1,269,761 (444,416) 825,345
17. 21 CONTINGENCIES AND COMMITMENTS Note Guarantees Commitments Other contingent liabilities 21 .1 21.1 21.2 21.3 21,310,170 57,289,195 211,480 78,810,845 16,431,358 35,378,273 211,480 52,021,111 105,939 5,476,512 15,727,719 21,310,170 26,647 5,537,835 10,866,876 16,431,358 37,361,531 24,712,924 10,933,964 8,757,000 4,516,172 5,744,000 100,047 136,653 57,289,195 252,413 152,764 35,378,273 19,580,186 8,646,222 10,933,964 14,577,741 10,061,569 4,516,172 Guarantees Financial guarantees Performance guarantees Other guarantees 21.2 December 31, September 30, 2020 2021 (Un-audited) (Audited) --- (Rupees in '000) --- Commitments Documentary credits and short-term trade-related transactions Import letters of credit Commitments in respect of: - Forward foreign exchange contracts - net - Islamic financing and related assets Commitments for acquisition of: - Fixed assets - Intangible assets 21.2.1 21.2.1 Commitments in respect of forward foreign exchange contracts - net Purchase Sale 21.3 Other contingencies The income tax authorities have amended assessment orders of the Bank for prior years including the tax year 2019. The disallowances were mainly due to reversal of provision against financing, provision against investments and Workers Welfare Fund. The Bank has filed appeals before the various appellate forums against these amendments. For the tax year 2015, tax authorities have issued a notice to amend assessment against the adjustment of minimum tax paid in prior years amounting to Rs. 211.48 million. The management of the Bank approached Sindh High Court and subsequently the Honorable Supreme Court of Pakistan against the order of the Sindh High Court. The Honorable Supreme Court of Pakistan has granted leave to appeal. The appeal is expected to be fixed soon. Through Finance Act 2021 favorable amendment has been made to section 113(2)(c) strengthening Bank’s stance on adjustment of minimum tax for the years where no tax was payable. The management of the Bank is confident that the appeals will be decided in favor of the Bank in respect of the aforementioned matters.
18. September 30 , September 30, 2020 2021 (Un-audited) ----- Rupees in '000 ----22 PROFIT / RETURN EARNED Profit on OnCustomers Islamic financing and related assets to customers Profit on OnAFS investments Securities in available-for-sale securities Profit on OnHTM investments Securities in held-to-maturity securities On deposits / placements with financial institutions 23 ` 6,545,772 450,463 523,352 227,879 26,158 7,773,624 10,084,458 658,538 361,492 265,631 265,051 11,635,170 462,701 94,714 80,510 78,436 152,748 286,476 59,332 36,280 17,904 36,559 105,094 8,395 1,419,149 400,401 104,770 65,350 60,724 145,358 168,541 53,179 29,335 16,088 9,197 74,548 1,127 1,128,618 484,692 982 1,389 809 FEE & COMMISSION INCOME Consumer Consumer financefinance related related fees fees Credit related Credit related fees fees Investment Investment bankingbanking fees fees BranchBranch bankingbanking customer customer fees fees Card related Card related fees (debit fees and credit cards) Commission Commission on tradeon trade Commission Commission on guarantees on guarantees Commission Commission on cashon management cash management Commission Commission on remittances on remittances including including home remittances home remittances Commission Commission on bancassurance on bancassurance RebateRebate Incomeincome - FI Others Others 25 16,216,397 3,684,614 103,939 645,632 20,650,582 PROFIT / RETURN EXPENSED Profit paid Deposits on deposits and other accounts Subordinated Subordinated debt expense sukuk Profit paid Due on to financial Due to FIinstitutions FinanceFinance charge cost on Lease on Ijarah Liabilities (lease) liabilities Cost ofCost foreign of foreign currency currency swaps swaps 24 13,170,540 3,263,537 139,533 16,573,610 GAIN ON SECURITIES Realised Debt securities 26 OTHER INCOME IN0604000 Gain on sale of fixed assets - net IN0605000
19. September 30 , September 30, 2020 2021 (Un-audited) ----- Rupees in '000 ----27 OPERATING EXPENSES Total compensation expense Property expense TakafulTakaful chargesProperty charges expense Utilities cost Security Repair & maintenance (including janitorial charges) Depreciation Depreciation on lease hold items Depreciation Depreciation Expense onon right-of-use Right-of-use assets assets Information technology expenses Software Software maintenance maintenance Hardware Hardware maintenace maintenance Depreciation Depreciation on hardware Amortisation Networking and connectivity charges Outsourced services cost Takaful charges IT supplies Others Other operating expenses Directors' fee and allowances Fees and Fees allowances and allowances to Sharia'h to Shari'a BoardBoard members Legal and professional charges Outsourced services cost Travelling Travelling and conveyane and conveyance NIFT clearing charges Depreciation Depreciation on other fixed assets Training and development Postage and courier charges Communications Stationary and printing Marketing, advertising and publicity Auditors' remuneration Brokerage, commission and bank charges Tracker related charges Cash transportation charges Repair and maintenance Subscription fees insurance Takaful exp other charges ope Deposit premium cost Others-Others 2,559,097 2,335,897 731 242,449 175,714 110,607 70,122 664,982 1,264,605 952 219,406 170,738 93,113 72,635 594,463 1,151,307 254,397 109,300 77,604 52,410 115,132 25,143 900 2,221 637,107 207,575 82,087 71,295 38,741 94,999 22,474 991 1,034 519,196 9,580 9,522 27,776 85,948 14,360 25,616 95,149 9,305 26,855 155,721 76,971 116,329 5,400 284,422 124,419 167,616 74,546 14,762 40,455 91,678 126,004 1,582,434 6,043,243 7,318 9,948 40,447 80,627 24,074 25,769 91,569 13,596 25,883 147,293 81,658 66,932 4,319 262,581 122,686 77,914 66,753 13,097 49,542 76,243 150,211 1,438,460 5,444,860
20. Note 28 OTHER CHARGES Penalties imposed by State Bank of Pakistan 29 3 ,031 10.14 945,754 (1,746) 944,008 1,056,819 11,435 1,068,254 2,038,404 (348,297) 1,690,107 1,569,518 28,555 1,598,073 2,656,114 2,498,930 TAXATION Current Deferred 31 312 PROVISIONS & WRITE OFFS - NET Provision against Islamic financing and related assets - net Reversal of provision against other assets Provision for diminution in the value of investments 30 September 30, September 30, 2020 2021 (Un-audited) ----- Rupees in '000 ----- BASIC AND DILUTED EARNINGS PER SHARE Profit after taxation for the period ---- (Number) ---Weighted average number of ordinary shares 1,165,228,776 1,165,228,776 ---- (Rupees) ---2.28 Earning per share - basic and diluted 32 2.14 CASH AND CASH EQUIVALENTS Cash and balance with treasury banks Balance with other banks Overdrawn nostros 6 7 15 19,357,562 2,018,627 (2,451) 21,373,738 21,331,445 3,796,924 (102) 25,128,267
21. 33 FAIR VALUE OF FINANCIAL INSTRUMENTS The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into which the fair value measurement is categorised : On-Balance sheet Financial Instruments September 30, 2021 (Un-audited) Carrying Value Fair Value Other Other Held to Available for Financing and Level 1 Level 2 Level 3 Total financial financial Total Maturity Sale receivables assets liabilities ------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------- Financial assets - measured at fair value Investments Federal Government securities Non-Government debt securities Foreign securities - Other assets Unrealized gain on foreign exchange contracts - Financial assets - not measured at fair value Cash and balances with treasury banks Balances with other banks Due from financial institution Investments Islamic financings and related assets - net Other asset - 1,119,843 - - 56,741,605 Financial liabilities - measured at fair value Other liabilities Unrealized loss on foreign exchange contracts Financial liabilities - not measured at fair value Bills payable Due to financial institutions Deposits and other accounts Subordinated sukuk Other liabilities Off-balance sheet financial instruments - measured at fair value Forward foreign exchange contracts - net - 1,411,890 44,174,447 10,035,425 - - - 1,411,890 44,174,447 10,035,425 137,517 - 137,517 224,514,768 - 19,357,562 2,018,627 3,523,946 9,274,047 - 19,357,562 2,018,627 3,523,946 1,119,843 224,514,768 9,274,047 224,514,768 34,311,699 - 315,568,072 - - - - - 110,954 110,954 7,120,000 - - - - 4,262,805 29,430,312 238,883,237 11,360,584 4,262,805 29,430,312 238,883,237 7,120,000 11,360,584 7,120,000 - - - 284,047,892 291,167,892 - - - 10,933,964 - 10,933,964 41,474,447 10,035,425 1,411,890 2,700,000 - - 1,411,890 44,174,447 10,035,425 - 137,517 - 137,517 - 110,954 - 110,954 - 10,960,527 - 10,960,527 December 31, 2020 (Audited) Carrying Value On-Balance sheet Financial Instruments Held to Maturity Available for Sale Fair Value Financing and Other financial Other financial receivables assets liabilities Total Level 1 Level 2 Level 3 Total ------------------------------------------------------------------------------- (Rupees in '000) ------------------------------------------------------------------------------Financial assets - measured at fair value Investments Federal Government securities Non-Government debt securities Foreign securities - Other assets Unrealized gain on foreign exchange contracts - - Financial assets - not measured at fair value Cash and balances with treasury banks Balances with other banks Due from financial institution Investments Islamic financings and related assets - net Other asset - - Financial liabilities - measured at fair value Other liabilities Unrealized loss on foreign exchange contracts Financial liabilities - not measured at fair value Bills payable Due to financial institutions Deposits and other accounts Subordinated sukuk Other liabilities Off-balance sheet financial instruments - measured at fair value Forward foreign exchange contracts - net - 1,499,600 46,746,901 18,333,069 66,579,570 - - 1,499,600 46,746,901 18,333,069 103,621 - 103,621 199,416,405 - 19,096,891 3,279,935 2,397,516 7,520,987 - 19,096,891 3,279,935 2,397,516 199,416,405 7,520,987 199,416,405 32,398,950 - 298,394,925 - - - - - 29,688 29,688 7,120,000 - - - - 4,246,241 17,350,949 237,553,365 9,560,376 4,246,241 17,350,949 237,553,365 7,120,000 9,560,376 7,120,000 - - - 268,740,619 275,860,619 - - - 4,516,172 - 4,516,172 43,709,401 18,333,069 1,499,600 3,037,500 - - 1,499,600 46,746,901 18,333,069 - 103,621 - 103,621 - 29,688 - 29,688 - 4,590,105 - 4,590,105 The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
22. 34 SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES September 30 , 2021 (Un-audited) SME & Consumer Other Total Commercial Treasury Banking Banking ------------------------------------------------------ (Rupees in '000) -----------------------------------------------------Corporate Banking Condensed Interim Profit and Loss Account Net profit earned Inter segment revenue - net Other income Total income Segment direct expenses Inter segment expense allocation Total expenses (Provisions) / reversal Profit before tax 4,886,400 (3,622,703) 420,214 1,683,911 (371,932) (75,812) (447,744) (737,665) 498,502 1,228,700 788,371 463,211 2,480,282 (242,606) 5,416,281 1,047,258 6,220,933 3,315,520 (2,968,031) 708,979 1,056,468 (1,083,589) (82,085) (1,165,674) (108,650) 1,205,958 (3,901,231) (497,382) (4,398,613) (98,250) 1,724,070 (103,350) (35,427) (138,777) 917,691 (388,028) 386,082 1,389 (557) 557 - 8,799,986 2,641,051 11,441,037 (5,460,102) (690,706) (6,150,808) (944,008) 4,346,221 Condensed Interim Statement of Financial Position Cash and bank balances Due from financial institutions Investments Net inter segment lending Islamic financings and related assets - net - performing - non-performing Others Total Assets Due to financial institutions Deposits & other accounts Net inter segment borrowing Subordinated sukuk Others Total liabilities Equity Total Equity and liabilities Contingencies and Commitments - 1,184,787 8,739,702 4,967,421 108,447,819 2,018,627 3,523,946 56,741,605 - 13,205,354 18,054,486 21,376,189 3,523,946 56,741,605 135,242,007 124,633,339 1,766,594 5,974,315 132,374,248 47,513,388 815,140 3,414,605 61,667,622 46,980,484 434,894 4,480,902 165,311,520 1,404,448 63,688,626 2,351,059 19,870 78,277 33,709,046 221,478,270 3,036,498 15,352,547 456,751,062 16,924,326 34,381,228 77,281,674 3,787,020 132,374,248 132,374,248 7,863,535 47,764,813 6,039,274 61,667,622 61,667,622 156,581,969 8,729,551 165,311,520 165,311,520 4,642,451 155,227 57,960,333 236,829 62,994,840 693,786 63,688,626 7,120,000 132,327 7,252,327 26,456,719 33,709,046 29,430,312 238,883,237 135,242,007 7,120,000 18,925,001 429,600,557 27,150,505 456,751,062 40,228,943 26,179,709 1,247,306 10,943,407 211,480 78,810,845 September 30, 2020 (Un-audited) SME & Corporate Consumer Other Total Commercial Treasury Banking Banking Banking ------------------------------------------------------ (Rupees in '000) -----------------------------------------------------Condensed Interim Profit and Loss Account Net profit earned Inter segment revenue - net Other income Total income Segment direct expenses Inter segment expense allocation Total expenses (Provisions) / reversal Profit before tax 6,384,037 (4,732,510) 277,378 1,928,905 (312,111) (72,971) (385,082) (643,312) 900,511 976,603 991,498 422,954 2,391,055 (2,085,781) 6,680,657 743,827 5,338,703 3,998,046 (3,191,361) 232,106 1,038,791 (854,962) (72,714) (927,676) (307,601) 1,155,778 (3,586,776) (441,879) (4,028,655) (110,874) 1,199,174 (151,665) (34,151) (185,816) (11,435) 841,540 (257,493) 251,716 809 (4,968) 4,968 - 9,015,412 1,677,074 10,692,486 (4,905,514) (621,715) (5,527,229) (1,068,254) 4,097,003 December 31, 2020 (Audited) SME & Corporate Consumer Other Total Commercial Treasury Banking Banking Banking ------------------------------------------------------ (Rupees in '000) -----------------------------------------------------Statement of Financial Position Cash and bank balances Due from financial institutions Investments Net inter segment lending Islamic financings and related assets - net - performing - non-performing Others Total Assets Due to financial institutions Deposits & other accounts Net inter segment borrowing Subordinated sukuk Others Total liabilities Equity Total Equity and liabilities Contingencies and Commitments - 664,470 14,300,344 5,051,202 110,991,528 3,279,935 2,397,516 66,579,570 - 13,381,219 15,698,098 22,376,826 2,397,516 66,579,570 140,989,970 110,586,862 1,688,848 4,673,747 116,949,457 46,604,659 612,825 2,727,538 64,909,836 37,489,678 282,827 3,506,127 157,321,362 1,346,575 73,603,596 2,130,381 20,325 237,859 31,467,882 196,811,580 2,604,825 12,491,846 444,252,133 9,948,601 34,374,277 69,113,931 3,512,648 116,949,457 116,949,457 6,902,348 52,462,074 5,545,414 64,909,836 64,909,836 150,574,493 6,746,869 157,321,362 157,321,362 500,000 142,521 71,876,039 259,691 72,778,251 825,345 73,603,596 7,120,000 549,529 7,669,529 23,798,353 31,467,882 17,350,949 237,553,365 140,989,970 7,120,000 16,614,151 419,628,435 24,623,698 444,252,133 23,482,303 20,946,146 2,834,699 4,546,483 211,480 52,021,111
23. 35 RELATED PARTY TRANSACTIONS The Bank has related party relationship with Dubai Islamic Bank P .J.S.C, U.A.E, the holding company, directors, related group companies and associated undertakings, key management personnel and Staff Retirement Funds. A number of banking transactions are entered into with related parties in the normal course of business. These mainly include financing and deposit transactions. These transactions are executed substantially on the same terms including profit rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not involve more than a normal risk. Contributions to staff retirement benefit plan are made in accordance with the terms of the contribution plan. Remuneration and other benefits to the executives are determined in accordance with the terms of their appointment. Usual transactions with related parties include deposits, financing, returns and provision of other banking services. Transactions with executives are undertaken at terms in accordance with employment agreements and service rules. The details of transactions with related parties and balances with them are given below: December 31, 2020 (Audited) September 30, 2021 (Un-audited) Associated companies Holding Company Directors Key management personnel Others** Total Associated companies Holding Company Directors Key management personnel Others** Total --------------------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------------Balances with other banks As at January 1 Deposited during the period / year Withdrawals during the period / year Closing balance - Islamic financing and related assets As at January 1 Disbursed during the period / year Payments during the period / year Adjustments * Closing balance - Deposits and other accounts As at January 1 Received during the period / year Withdrawals during the period / year Adjustments * Closing balance - Other Liability As at January 1, Withheld during the period / year Paid during the period / year Adjustments * Closing balance - Associated companies 51,819 30,341,498 (30,361,726) 31,591 - - 142,168 12,814,074 (12,798,136) 158,106 - 12,155 23,922 (24,213) 141 12,005 - - - - 51,819 30,341,498 (30,361,726) 31,591 - - 144,043 48,220 (61,592) 7,254 137,925 - 1,434,819 1,686,968 21,393,019 7,858,982 (7,850,027) (21,372,889) 4,141 1,443,774 1,711,239 - 144,043 48,220 (61,592) 7,254 137,925 97,826 696,041 (700,513) 4,000 97,354 12,374 12,070 (3,367) 21,077 - September 30, 2021 (Un-audited) Key manageDirectors ment Others** personnel Holding Company - 12,374 12,070 (3,367) 21,077 36,608 30,701,598 (30,686,387) 51,819 - - 70,228 12,459,354 (12,387,414) 142,168 - - Associated companies Holding Company - 5,646 78,241 (71,279) (453) 12,155 - - 169,899 18,255 (46,694) 2,583 144,043 - 36,608 30,701,598 (30,686,387) 51,819 - 169,899 18,255 (46,694) 2,583 144,043 1,487,563 80,174 1,331,515 16,078,829 474,496 3,066,738 (456,543) (2,963,434) (15,878,670) (754) (301) 97,826 1,434,819 1,686,968 13,474 (1,100) 12,374 - 13,474 (1,100) 12,374 September 30, 2020 (Un audited) Total Directors Key management personnel Others** Total --------------------------------------------------------------------------------------------------------- (Rupees in '000) --------------------------------------------------------------------------------------------------------Transactions during the period Fees and allowances EX0253000 Remuneration to key management personnel (Including bonus) Profit earned on investments Profit earned on financings Profit expensed on deposits Profit expense on due to financial institution Profit expensed on other liability Contribution made to gratuity fund Contribution made to provident fund Contingencies and commitments Foreign currency purchase contracts Foreign currency sale contracts - - 9,580 7,937 - - 236 - 249,888 4,714 3,252 914 - - 5,897,785 5,897,785 - - - 17,517 - - 7,318 71,082 65,073 91,723 249,888 4,714 74,570 914 65,073 91,723 - - - - - 374 - - 5,897,785 5,897,785 - - 5,061,944 5,051,944 - 15,191 243,625 - 243,625 8,743 130,000 670 55,800 82,193 8,743 3,408 126,218 - 670 - 55,800 82,193 - - * Primarily relates to those directors, associates and key management personnel who are no longer related parties or have become related parties of the Bank as at September 30, 2021. * * Represents Dubai Islamic Bank Pakistan Limited's Provident & Gratuity Funds. 7,874 - 5,061,944 5,051,944
24. 36 CAPITAL ADEQUACY , LEVERAGE RATIO & LIQUIDITY REQUIREMENTS September 30, December 31, 2020 2021 (Un-audited) (Audited) ----- Rupees in '000 ----- Minimum Capital Requirement: Paid-up capital 11,652,288 11,652,288 26,048,060 3,120,000 29,168,060 6,884,140 36,052,200 23,489,541 3,120,000 26,609,541 6,738,204 33,347,745 189,048,681 476,257 23,427,513 212,952,451 173,567,219 415,765 23,427,513 197,410,497 Capital Adequacy Ratio: Eligible Common Equity Tier I Capital Eligible Additional Tier I Capital Total Eligible Tier I Capital Eligible Tier II Capital Total Eligible Capital (Tier I + Tier II) Risk Weighted Assets: Credit Risk Market Risk Operational Risk Total Common Equity Tier I Capital Adequacy Ratio Tier I Capital Adequacy Ratio Total Capital Adequacy Ratio 12.23% 13.70% 16.93% 11.90% 13.48% 16.89% Leverage Ratio: Eligible Tier I Capital Total Exposures Leverage Ratio 29,168,060 395,706,908 7.37% 26,609,541 358,204,763 7.43% 74,871,144 49,238,358 152.06% 67,459,090 33,081,322 203.92% 216,179,867 179,171,829 120.66% 248,445,467 224,294,003 110.77% Liquidity Coverage Ratio: Total High Quality Liquid Assets Total Net Cash Outflow Liquidity Coverage Ratio Net Stable Funding Ratio: Total Available Stable Funding Total Required Stable Funding Net Stable Funding Ratio
25. 37 DATE OF AUTHORISATION FOR ISSUE This condensed interim financial information was authorised for issue on October 18 , 2021 by the Board of Directors of the Bank. 38 GENERAL Figures have been rounded off to the nearest thousand Rupees, unless otherwise stated. President & CEO Chief Financial Officer Director Director Director