Kpmg Banking Survey-2015.pdf

kpmg KPMG Taseer Hadi & Co. Chartered Accountants

Banking Survey 2015 Commercial Banks Operating in Pakistan

Banking Survey 2015 This survey has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected commercial banks in Pakistan for the year ended 31 December 2015. Banking sector in Pakistan has been divided in four categories for the purpose of this survey to facilitate comparison of peer groups: I.

Large Banks: Total assets in excess of Rs. 700 billion.

II.

Medium size Banks: Total assets in excess of Rs. 150 billion but less than Rs. 700 billion.

III.

Small Banks: Total assets less than Rs. 150 billion.

IV.

Islamic Banks: All banks carrying out Islamic banking activities only.

“Islamic Banks” have been presented as a separate category and included in their respective category of Medium and Small Banks based on total assets threshold. Further, summarized financial information of “Islamic Banking Branches of Conventional Banks” has also been presented to have an idea about size of Islamic Banking in Pakistan. The information contained in this survey has been obtained from the published consolidated financial statements of the banks, statistical bulletins published by State Bank of Pakistan (SBP) and information published in business magazines and newspapers. Where consolidated financial statements were required and were not available, standalone financial statements have been used. Reference should be made to the published financial statements of the banks and definitions included in this survey to enhance the understanding of ratios and analysis of performance of a particular bank. The financial statements of Bank of Punjab and BankIslami Pakistan Limited were not published till the date of our publication, and accordingly not included in this survey. Comparative figures of 2014 as reported in our Banking Survey 2014 have been updated to correspond with comparative figures reported in 2015 financial statements. We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. However, we welcome any comments, which would facilitate in improving the contents of this survey. The comments may be sent on [email protected]

Karachi: 27 April 2016

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Contents At a Glance ...................................................................................................... 1 Summary of Financial Information .................................................................. 7 Profitability ..................................................................................................... 13 Spread ........................................................................................................... 15 Non-Funded Income ..................................................................................... 19 Staff Costs ..................................................................................................... 21 Loans and Advances ..................................................................................... 23 Liquidity (Average Advances to Average Deposits) ..................................... 29 Deposits ........................................................................................................ 33 Credit Ratings ................................................................................................ 39 Number of Branches and Legend ................................................................. 41 Definitions ...................................................................................................... 43

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

At a Glance Large Banks HBL

NBP

UBL

MCB

ABL

BAF

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

2015

2014

1 1 1

1 2 1

2 2 4

2 1 4

3 3 2

3 3 3

4 4 3

4 4 2

5 5 5

5 5 5

6 7 7

6 7 8

Profit before tax (Rupees in millions)

60,286

48,250

34,172

23,136

43,447

35,616

42,789

37,354

25,776

22,433

12,657

8,677

Net Interest Margin

2.8%

2.7%

2.5%

1.5%

3.5%

3.0%

4.0%

3.3%

3.1%

2.3%

2.4%

1.5%

4.4

5.0

5.4

5.6

4.4

4.7

5.1

5.9

4.3

5.7

4.7

5.5

Return on Average Equity

19.9%

20.2%

11.3%

9.4%

18.4%

19.3%

18.0%

19.7%

17.8%

20.5%

15.1%

14.9%

Return on Average Assets

1.7%

1.8%

1.2%

1.1%

2.0%

2.1%

2.6%

2.8%

1.7%

1.9%

0.9%

0.9%

Operating Cost to Net Interest Income Ratio

63.9%

62.0%

83.4%

97.7%

60.7%

69.7%

48.6%

50.6%

52.8%

62.8%

79.6%

94.9%

Net provision / (reversal) (Rupees in millions)

4,508

1,234

9,945

9,303

3,823

1,336

545

(1,941)

1,586

1,220

2,288

1,572

Impairment cover (Times)

14.4

40.1

4.4

3.5

12.4

27.7

79.4

-

17.3

19.4

6.5

6.5

10.9%

12.0%

18.5%

16.6%

9.1%

11.1%

6.1%

6.8%

6.4%

7.0%

5.4%

6.4%

Total Assets (Rupees in millions)

2,218,423

1,864,618

1,711,874

1,549,659

1,486,187

1,182,453

1,020,980

941,606

992,739

843,098

903,416

743,959

Net Assets (Rupees in millions)

182,620

169,595

171,655

182,593

155,599

137,505

142,177

136,269

90,125

81,565

54,093

45,568

Capital Adequacy Ratio

17.0%

16.2%

18.4%

18.2%

14.7%

14.3%

20.1%

20.4%

21.0%

19.9%

13.6%

12.7%

CASA

82.8%

77.9%

73.1%

72.8%

69.7%

70.2%

92.2%

90.2%

72.1%

73.9%

75.5%

72.0%

EPS

23.93

21.56

9.44

7.56

21.36

19.32

22.38

22.15

13.37

13.28

4.72

4.18

Market Price

200.12

216.26

54.04

69.46

154.95

176.71

216.85

305.65

94.26

113.58

28.82

34.88

Market Capitalization (Rupees in million)

293,546

317,221

114,971

147,777

189,687

216,325

241,361

340,198

107,935

130,057

45,818

55,363

Ranking By total assets By net assets By profit before tax

Spread

Non Performing Advances to gross loans

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

1

2

Banking Survey 2015

Medium Size Banks BAH

Askari 2015 2014

Meezan 2015 2014

2015

2014

7 8 9

7 9 7

8 11 11

8 11 11

9 12 10

Profit before tax (Rupees in millions)

12,266

10,003

8,337

5,869

Net Interest Margin

2.8%

2.1%

2.3%

3.7

3.8

Return on Average Equity

20.6%

Return on Average Assets

HMB

SCB

Faysal 2015 2014

2015

2014

2015

2014

9 12 10

10 9 8

11 8 9

11 6 6

10 6 6

12 10 12

12 10 13

8,451

6,899

12,565

7,336

15,565

15,368

6,920

3,552

1.8%

2.8%

2.1%

1.9%

1.2%

4.1%

3.5%

2.6%

2.7%

4.0

5.1

3.8

3.8

2.6

2.7

7.8

8.2

5.6

6.5

22.0%

19.4%

19.0%

20.0%

21.4%

21.4%

15.8%

15.1%

16.5%

14.9%

10.2%

1.2%

1.2%

1.0%

1.0%

1.0%

1.2%

1.7%

1.4%

2.2%

2.4%

1.0%

0.7%

Operating Cost to Net Interest Income Ratio

60.8%

65.3%

83.7%

95.8%

75.7%

80.5%

61.5%

70.1%

56.1%

60.5%

80.2%

88.9%

Net provision / (reversal) (Rupees in millions)

1,965

558

879

322

563

467

2,226

1,779

1,555

483

1,393

2,359

7.2

18.9

10.5

19.2

16.0

15.8

6.6

5.1

11.0

32.8

6.0

2.5

2.7%

2.7%

13.8%

15.6%

3.3%

3.8%

12.3%

12.8%

18.7%

15.4%

15.0%

14.3%

Total Assets (Rupees in millions)

640,024

579,310

536,189

447,612

531,850

437,510

489,886

397,675

455,992

419,723

430,073

388,126

Net Assets (Rupees in millions)

38,192

33,027

27,074

24,026

26,347

23,890

36,862

34,769

63,158

61,900

30,352

26,303

Capital Adequacy Ratio

13.9%

15.0%

12.6%

13.2%

11.0%

11.9%

18.5%

17.4%

20.7%

18.9%

14.4%

12.2%

CASA

76.1%

76.0%

78.8%

75.6%

71.5%

71.2%

55.9%

57.7%

92.0%

92.0%

66.9%

64.2%

EPS

6.60

5.79

3.92

3.25

5.01

4.56

7.32

4.72

2.39

2.49

3.52

2.06

Market Price

41.60

48.55

21.74

23.07

45.75

47.00

30.47

37.30

21.90

23.60

15.43

18.20

Market Capitalization (Rupees in million)

46,235

53,960

27,398

29,074

45,875

47,129

31,927

39,084

84,788

91,369

18,512

18,988

Ranking By total assets By net assets By profit before tax

Spread

Impairment cover (Times)

Non Performing Advances to gross loans

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Soneri 2015 2014

NIB

JS

2015

2014

2015

2014

Summit 2015 2014

DIB 2015

2014

2015

BOK 2014

Ranking By total assets By net assets By profit before tax

13 14 16

13 13 15

14 15 14

14 14 26

15 13 15

15 15 14

16 19 23

16 18 25

17 22 22

20 22 19

18 16 17

17 16 16

Profit before tax (Rupees in millions)

3,596

2,442

4,029

(108)

3,768

2,589

693

36

712

926

2,959

1,901

Net Interest Margin

2.6%

2.4%

1.7%

1.7%

2.2%

1.9%

1.6%

1.3%

2.9%

-1.7%

2.0%

1.8%

2.9

3.4

3.8

4.6

3.5

4.7

3.8

4.4

3.9

5.4

3.4

2.5

Return on Average Equity

12.6%

10.4%

14.6%

-3.8%

14.0%

13.8%

2.0%

3.1%

5.6%

8.3%

11.6%

9.5%

Return on Average Assets

0.9%

0.8%

1.2%

-0.3%

1.2%

1.3%

0.1%

0.2%

0.3%

0.7%

1.3%

1.1%

Operating Cost to Net Interest Income Ratio

80.6%

92.3%

138.1%

164.9%

96.7%

113.9%

170.5%

207.0%

108.1%

97.6%

60.7%

69.8%

Net provision / (reversal) (Rupees in millions)

1,029

549

386

1,527

718

421

1,575

563

187

292

581

235

4.5

5.4

11.4

0.9

6.2

7.2

1.4

1.1

4.8

4.2

6.1

9.1

9.6%

8.8%

20.9%

24.7%

3.8%

4.4%

20.7%

19.1%

2.1%

3.9%

12.8%

10.4%

Total Assets (Rupees in millions)

253,342

213,175

245,043

194,995

220,807

179,381

188,366

148,444

157,093

101,553

155,159

126,106

Net Assets (Rupees in millions)

18,192

17,039

18,089

16,932

19,008

16,197

11,949

12,332

7,976

7,439

15,918

14,920

Capital Adequacy Ratio

15.4%

12.5%

12.5%

12.0%

15.2%

16.7%

10.2%

12.2%

11.1%

17.1%

23.8%

22.7%

CASA

67.9%

66.1%

69.4%

73.0%

51.4%

53.0%

70.7%

70.0%

63.4%

64.1%

56.9%

62.8%

EPS

2.01

1.44

0.25

(0.07)

1.95

1.35

0.16

0.16

0.62

0.86

1.79

1.31

Market Price

15.13

12.33

1.90

2.32

7.75

7.14

3.93

4.45

-

-

11.26

9.85

Market Capitalization (Rupees in million)

16,680

13,593

19,575

23,903

8,312

7,657

4,236

4,797

-

-

11,263

9,852

Spread

Impairment cover (Times)

Non Performing Advances to gross loans

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

3

4

Banking Survey 2015

Small Banks ICBC 2014 2015

Silk 2015

2014

Sindh 2015 2014

Citibank 2014 2015

Albaraka 2014 2015

Ranking By total assets By net assets By profit before tax

19 23 18

23 25 18

20 18 27

19 21 23

21 17 19

18 17 17

22 21 13

22 20 12

23 24 24

21 23 22

Profit before tax (Rupees in millions)

2,821

1,405

(1,839)

131

2,075

1,612

5,659

4,603

406

217

Net Interest Margin

4.3%

4.8%

2.5%

3.7%

2.7%

2.1%

3.9%

3.7%

3.0%

2.0%

4.3

4.2

6.1

6.9

4.1

5.9

4.1

2.1

4.1

4.1

Return on Average Equity

32.6%

22.3%

-14.8%

1.1%

8.6%

8.5%

33.9%

32.4%

3.9%

2.5%

Return on Average Assets

1.6%

1.3%

-1.5%

0.1%

1.0%

1.1%

4.2%

4.4%

0.3%

0.2%

23.9%

25.9%

197.1%

135.3%

75.4%

80.4%

51.6%

44.9%

115.1%

119.6%

Net provision / (reversal) (Rupees in millions)

-

-

724

368

2,520

19

(175)

(129)

(125)

85

Impairment cover (Times)

-

-

-

1.4

1.8

85.5

-

-

-

3.5

Non Performing Advances to gross loans

-

-

12.7%

12.8%

0.6%

0.8%

12.6%

10.8%

8.0%

8.4%

Total Assets (Rupees in Millions)

140,254

75,950

133,137

102,736

128,104

124,871

88,643

81,254

86,933

94,349

Net Assets (Rupees in Millions)

6,399

4,508

14,577

8,501

14,774

14,102

10,767

10,534

6,273

5,901

Capital Adequacy Ratio

13.1%

14.7%

13.8%

9.1%

20.4%

22.6%

31.6%

28.9%

14.5%

14.2%

CASA

84.6%

59.0%

53.7%

54.9%

63.7%

66.9%

72.3%

78.0%

74.2%

61.1%

EPS

-

-

(0.58)

0.03

1.25

1.23

-

-

0.27

0.16

Market Price

-

-

1.82

2.22

-

-

-

-

-

-

Market Capitalization (Rupees in million)

-

-

14,196

5,931

-

-

-

-

-

-

Spread

Operating Cost to Net Interest Income Ratio

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Samba 2015 2014

FWB

DB

5

BOT

2015

2014

2015

2014

2015

2014

Ranking By total assets By net assets By profit before tax

24 20 21

24 19 21

25 27 26

26 27 27

26 25 20

25 24 20

27 26 25

27 26 24

Profit before tax (Rupees in millions)

815

425

35

(666)

1,656

910

63

69

Net Interest Margin

2.2%

2.0%

2.4%

2.5%

4.4%

3.6%

1.1%

2.1%

2.3

2.8

4.5

4.6

5.3

6.5

1.1

3.6

Return on Average Equity

3.7%

2.1%

2.1%

-26.0%

18.4%

11.3%

1.2%

0.7%

Return on Average Assets

0.7%

0.5%

0.3%

-2.5%

4.7%

2.4%

0.5%

0.3%

Operating Cost to Net Interest Income Ratio

98.5%

94.0%

121.4%

115.5%

112.5%

122.2%

251.6%

211.4%

22

(99)

225

644

(335)

44

-

-

Impairment cover (Times)

38.9

-

1.2

0.0

-

21.9

-

-

Non Performing Advances to gross loans

7.5%

9.0%

20.5%

15.0%

1.4%

4.9%

-

-

Total Assets (Rupees in millions)

80,166

50,581

21,347

18,787

21,114

21,708

10,823

7,845

Net Assets (Rupees in millions)

11,844

11,255

2,833

2,212

5,900

5,163

4,018

3,832

Capital Adequacy ratio

30.3%

36.5%

41.2%

29.1%

26.0%

16.2%

83.7%

95.7%

CASA

54.1%

57.9%

85.8%

75.4%

76.9%

71.2%

15.8%

25.0%

EPS

0.43

0.24

0.21

(2.75)

-

-

-

-

Market Price

6.00

7.00

-

-

-

-

-

-

6,049

7,058

-

-

-

-

-

-

Spread

Net provision / (reversal) (Rupees in millions)

Market Capitalization (Rupees in million)

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

6

Banking Survey 2015

Islamic Banks Meezan 2015 2014 Ranking By total assets By net assets By profit before tax

DIB 2015

2014

Albaraka 2015 2014

1 1 1

1 1 1

2 2 2

2 2 2

3 3 3

3 3 3

Profit before tax (Rupees in millions)

8,451

6,899

712

926

406

217

Net Interest Margin

2.8%

2.1%

2.9%

-1.7%

3.0%

2.0%

3.8

3.8

3.9

5.4

4.1

4.1

Return on Average Equity

13.7%

21.4%

3.6%

8.3%

2.7%

2.5%

Return on Average Assets

0.7%

1.2%

0.2%

0.7%

0.2%

0.2%

75.7%

80.5%

108.1%

97.6%

115.1%

119.6%

Net provision / (reversal) (Rupees in millions)

563

467

187

292

(125)

85

Impairment cover (Times)

16.0

15.8

4.8

4.2

-

3.5

3.3%

3.8%

2.1%

3.9%

8.0%

8.4%

Total Assets (Rupees in millions)

531,850

437,510

157,093

101,553

86,933

94,349

Net Assets (Rupees in millions)

26,347

23,890

7,976

7,439

6,273

5,901

Capital Adequacy ratio

11.0%

11.9%

11.1%

17.1%

14.5%

14.2%

CASA

71.5%

71.2%

63.4%

64.1%

74.2%

61.1%

5.01

4.56

0.62

0.86

0.27

0.16

45.75

47.00

-

-

-

-

45,875

47,129

-

-

-

-

Spread

Operating Cost to Net Interest Income Ratio

Non Performing Advances to gross loans

EPS

Market Price

Market Capitalization (Rupees in million)

MCBIB financial results have not been shown due to initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Summary of Financial Information Large Banks Assets

Bank

Cash & bank

Lendings to financial institutions

Investments

Loans and advances - net of provisions

Operating fixed assets & intangible assets

Rupees in million 633,383

Other assets

Total assets

HBL

207,721

1,244,887

44,318

NBP

171,830

826,247

10,639

UBL

141,476

747,599

31,305

487,278

36,678

41,851

1,486,187

MCB

71,325

564,300

5,132

315,311

32,997

31,915

1,020,980

580,094

31,342

56,772

2,218,423

33,301

89,763

1,711,874

ABL

60,789

544,833

3,628

321,648

28,870

32,971

992,739

BAF

78,952

397,516

53,629

327,300

17,318

28,701

903,416

732,093

4,325,382

148,651

2,665,014

180,506

281,973

8,333,619

Liabilities and Equity Bank

Bills payable

Borrowings

Subordinated loans

Deposits

Other liabilities

Rupees in million 10,000

Equity

Total

HBL

28,082

314,319

1,634,944

48,458

182,620

2,218,423

NBP

9,172

22,385

1,431,535

-

77,127

171,655

1,711,874

UBL

13,396

164,232

1,119,953

-

33,007

155,599

1,486,187

MCB

11,975

118,615

706,240

-

41,973

142,177

1,020,980

ABL

4,942

137,960

734,546

-

25,166

90,125

992,739

BAF

9,734

172,393

640,137

9,983

17,076

54,093

903,416

77,301

929,904

6,267,355

19,983

242,807

796,269

8,333,619

Income Statement

Bank

Spread

Non-markup / NonNet provision interest income

Operating income

Operating expenses

Profit before tax

Rupees in million 49,959

Taxation

Other Profit after Comprehensive Income tax

HBL

78,169

4,508

36,584

110,245

60,286

25,185

35,101

358

NBP

54,387

9,945

35,104

79,546

45,374

34,172

14,096

20,076

(19,284)

UBL

57,859

3,823

24,549

78,584

35,137

43,447

16,438

27,009

7,179

MCB

49,555

545

17,859

66,868

24,079

42,789

17,754

25,035

(989)

ABL

36,152

1,586

10,309

44,876

19,100

25,776

10,461

15,315

1,556

BAF

28,614

2,288

9,103

35,429

22,772

12,657

5,143

7,514

4,049

304,736

22,695

133,508

415,548

196,421

219,127

89,077

130,050

(7,131)

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7

8

Banking Survey 2015

Medium Size Banks Assets

Bank

Cash & bank

BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB

41,782 38,044 54,861 44,454 33,782 27,152 18,353 11,698 11,790 13,459 18,053

BOK

Lendings to financial institutions

Investments

355,081 268,049 76,910 280,911 224,632 183,677 108,634 96,024 116,885 77,558 18,516

5,818 813 170,474 14,445 26,970 12,088 3,306 1,599 3,581 1,460 11,725

Loans and advances - net of provisions

Operating fixed assets & intangible assets

Rupees in m illion 205,859 199,937 207,569 132,647 106,595 178,079 112,002 110,669 76,679 70,554 104,954

Other assets

15,782 9,278 8,057 3,125 32,091 11,343 4,957 3,977 4,731 9,609 1,843

15,702 20,068 13,979 14,304 31,922 17,734 6,090 21,076 7,141 15,726 2,002

Total assets

640,024 536,189 531,850 489,886 455,992 430,073 253,342 245,043 220,807 188,366 157,093

12,060

88,296

13,205

36,454

1,925

3,219

155,159

325,488

1,895,173

265,484

1,541,998

106,718

168,963

4,303,824

Liabilities and Equity Bank

Bills payable

Borrowings

Deposits

Subordinated loans

Other liabilities

Equity

Total

Rupees in m illion BAH

8,665

62,592

516,198

2,995

11,382

38,192

640,024

Askari

6,095

57,323

433,130

4,997

7,570

27,074

536,189

Meezan HMB

6,560 6,344

13,610 31,463

471,821 403,209

-

13,512 12,008

26,347

531,850

36,862

489,886

11,401

21,784

327,121

30,028

63,158

Faysal Soneri

6,009 2,751

90,565

292,130

2,500 2,994

30,352

455,992 430,073

NIB JS Summit

2,576 1,609 2,729

39,876 85,677

185,222 130,400

8,023 4,301

54,638 49,756

140,355

DIB

1,552 505 56,796

SCB

BOK

-

3,000 4,196 -

4,105

18,192 18,089

1,497

5,197 2,693

4,552

119,742 136,743

3,247

3,023

19,008 11,949 7,976

17,130 528,966

117,292 3,273,363

25,426

4,314 106,156

15,918 313,117

253,342 245,043 220,807 188,366 157,093 155,159 4,303,824

Income Statement

Bank

BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB BOK

Spread

24,835 14,906 18,217 14,399 22,767 13,955 7,597 4,651 5,784 3,056 4,634

Net provision

Non-markup / Noninterest income

Operating income

1,965 879 563 2,226 1,555 1,393 1,029 386 718 1,575 187

4,486 6,780 4,597 9,249 7,117 5,557 3,153 5,990 4,297 4,423 1,274

27,356 20,807 22,250 21,422 28,328 18,118 9,721 10,452 9,363 5,904 5,722

Operating expenses

Profit before tax

Rupees in m illion 15,090 12,470 13,799 8,857 12,763 11,198 6,125 6,423 5,595 5,211 5,010

12,266 8,337 8,451 12,565 15,565 6,920 3,596 4,029 3,768 693 712

Taxation

4,934 3,393 3,429 4,892 6,134 2,698 1,383 1,479 1,303 455 281

Profit after tax

Other Comprehensive Income

7,332 4,944 5,022 7,673 9,431 4,222 2,213 2,550 2,465 238 431

1,167 624 148 (865) 654 (48) 42 (1,378) 902 (151) 106

4,428

581

1,799

5,647

2,688

2,959

1,169

1,790

185

139,229

13,057

58,722

185,090

105,229

79,861

31,550

48,311

1,386

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

9

Small Banks Assets Bank

Cash & bank

Lendings to financial institutions

Investments

Loans and advances - net of provisions

Operating fixed assets & intangible assets

Rupees in million 6,999

Other assets

Total assets

ICBC

5,660

124,771

670

663

1,491

140,254

Silk

7,538

34,999

6,778

61,074

4,497

18,251

133,137

Sindh

6,384

69,644

1,450

44,169

1,902

4,555

128,104

Citibank

5,514

48,585

8,464

21,390

458

4,232

88,643

12,408

15,278

3,912

47,645

2,672

5,018

86,933

Albaraka SAMBA

4,330

44,726

2,000

24,187

1,324

3,599

80,166

FWB

1,237

11,067

-

7,970

337

736

21,347

DB

6,492

-

6,422

6,560

324

1,316

21,114

BOT

4,361

-

3,741

2,589

61

71

10,823

33,437

222,583

12,238

39,269

710,521

53,924

349,070

Liabilities and Equity Bank

Bills payable

Borrowings

Subordinated loans

Deposits

Other liabilities

Equity

Total

Rupees in million ICBC

267

100,082

26,949

-

6,557

6,399

140,254

2,413

33,230

81,098

-

1,819

14,577

133,137

289

27,161

83,921

-

1,959

14,774

128,104

1,766

7,003

61,743

-

7,364

10,767

88,643

Albaraka

884

2,108

71,644

3,757

2,267

6,273

86,933

SAMBA

492

27,326

38,844

-

1,660

11,844

80,166

FWB

103

2,832

15,163

-

416

2,833

21,347

DB

943

11

11,977

-

2,283

5,900

21,114

6

1,410

5,223

-

166

4,018

10,823

7,163

201,163

396,562

24,491

77,385

710,521

Silk Sindh Citibank

BOT

3,757

Income Statement Bank

Spread

Net provision / (reversal)

ICBC

5,956

-

Silk

3,100

Sindh

4,481

Citibank

3,858

Albaraka

2,478

SAMBA

2,143

FWB DB BOT

Non-markup / Noninterest income

Operating income

Operating expenses

Profit / (loss) before tax

Rupees in million 1,424

4,245

724

1,894

4,270

6,109

(1,839)

(128)

(1,711)

2,520

3,492

5,452

3,377

2,075

829

1,246

(574)

(175)

3,619

7,652

1,993

5,659

2,050

3,609

(329)

(125)

656

3,260

2,854

406

166

240

131

22

805

2,926

2,111

815

385

430

159

698

225

409

882

847

35

928

(335)

1,437

2,699

1,043

1,656

81

2,856

1,046

Profit / Other (loss) after Comprehensive tax Income

(1,711)

23,723

2,821

Taxation

(19) 640

1,775

54 1,016

185

266

203

63

17

46

10,786

31,652

19,961

11,691

4,986

6,705

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116 (41)

168 (262) 141 (491)

10

Banking Survey 2015

Islamic Banks Assets

Bank

Cash & bank

Lendings to financial institutions

Investments

Loans and advances - net of provisions

Operating fixed assets & intangible assets

Other assets

Total assets

Rupees in million Meezan

54,861

76,910

170,474

207,569

8,057

13,979

531,850

DIB

18,053

18,516

11,725

104,954

1,843

2,002

157,093

Albaraka

12,408

15,278

3,912

47,645

2,672

5,018

86,933

8,207

624

973

170

134

10,108

93,529

111,328

361,141

12,742

21,133

785,984

MCBIB

186,111

Liabilities and Equity Bank

Bills payable

Borrowings

Subordinated loans

Deposits

Meezan

6,560

13,610

471,821

DIB

Other liabilities

Rupees in million -

Equity

Total

13,512

26,347

531,850 157,093

1,552

4,552

136,743

3,247

3,023

7,976

Albaraka

884

2,108

71,644

3,757

2,267

6,273

86,933

MCBIB

-

-

86

9,984

10,108

8,996

20,270

18,888

50,580

785,984

38 680,246

7,004

Income Statement Net provision / (reversal)

Non-markup / Noninterest income

Operating income

18,217

563

4,597

22,250

13,799

8,451

3,429

5,022

148

DIB

4,634

187

1,274

5,722

5,010

712

281

431

106

Albaraka

2,478

(125)

656

3,260

2,854

406

166

240

131

11

166

113

53

5

48

6,538

31,398

21,776

9,622

3,881

5,741

Bank

Spread

Operating expenses

Profit before tax

Taxation

Other Profit after Comprehensive tax Income

Rupees in million Meezan

MCBIB

155 25,484

625

MCBIB financial results have only been shown in the above tables in this survey due to its initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

385

Banking Survey 2015

11

Islamic Banking Business of Conventional Banks Assets Bank

Cash & bank

Investments

Due to financial institutions

Islamic financing and related assets

Operating fixed assets

Other assets

Total assets

Rupees in million HBL

5,321

40,474

62,736

19,779

-

8,016

136,326

BAF

12,455

33,422

38,613

42,056

2,286

2,665

131,497

HMB

14,293

14,949

14,552

7,898

77

3,460

55,229

SCB

2,386

5,440

10,438

29,605

40

537

48,446

Faysal

3,103

9,960

11,924

20,287

470

338

46,082

Askari

4,848

5,873

-

20,768

536

1,333

33,358

UBL

4,860

11,856

6,691

7,070

151

2,308

32,936

BOK

5,501

3,359

11,916

10,196

249

623

31,844

BAH

1,627

5,595

-

11,981

135

244

19,582

MCB

712

3,107

2,265

10,029

2,456

52

18,621

NBP

4,987

1,168

5,819

837

62

920

13,793

Soneri

654

4,651

737

3,645

145

332

10,164

Silk

551

1,123

-

4,648

99

2,018

8,439

Summit

380

1,100

1,037

2,571

121

129

5,338

Sindh

281

1,368

650

521

95

80

2,995

ABL

136

2,241

272

140

46

79

2,914

62,095

145,686

167,650

192,031

6,968

23,134

597,564

Liabilities and Equity Bank

Due to financial institutions

Bills payable

Deposits

Other liabilities

Equity

Total

Rupees in million HBL

4

103

130,640

1,275

4,304

136,326

BAF

1,429

9,985

105,407

5,304

9,372

131,497

HMB

228

966

52,067

575

1,393

55,229

SCB

147

1,459

37,959

4,144

4,737

48,446

Faysal

579

-

31,759

10,798

2,946

46,082

Askari

525

807

26,934

2,780

2,312

33,358

UBL

197

-

31,086

452

1,201

32,936

BOK

148

300

25,451

2,309

3,636

31,844

BAH

8

2,734

14,719

429

1,692

19,582

MCB

86

420

11,286

4,503

2,326

18,621

NBP

38

-

12,701

351

703

13,793

Soneri

50

240

8,998

164

712

10,164

-

6,605

50

1,152

8,439

925

3,007

168

1,214

5,338

131

2,320

95

449

2,995

11

19

2,335

42

507

2,914

4,106

18,089

503,274

33,439

38,656

597,564

Silk Summit Sindh ABL

632 24 -

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12

Banking Survey 2015

Income Statement

Bank

Net spread earned

Depreciation on assets given on Ijarah

HBL

3,164

258

BAF

5,545

1,441

Net provision / (reversal)

Other income

Operating expenses

Profit / (loss) before tax

620

3,154 1,798

Rupees in m illion 868 123

582

2,765

HMB

607

-

82

124

285

364

SCB

2,850

-

193

674

1,900

1,431

Faysal

1,544

-

42

129

1,115

516

Askari

1,078

-

42

116

1,065

87

UBL

364

-

12

54

663

BOK

1,287

-

69

214

996

436

BAH

529

-

1

72

419

181

-

65

MCB

815

NBP

503

Soneri

253

Silk Summit

(20) 190

81

634

1,017

(17)

69

608

(1)

29

211

-

-

17

290

-

-

26

117

(257)

367 (100) 72 (293) 99

Sindh

35

-

-

14

92

(43)

ABL

61

-

-

6

119

(52)

3,628

12,282

18,805

1,780

611

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7,760

Banking Survey 2015

Profitability The profit before tax of banks included in this survey has increased by 28.9% to Rs. 310.7 billion in 2015 from Rs. 240.9 billion in 2014 mainly due to increased net interest income.

Large Banks All large banks have reported significant increase in profits this year.

60,286

70,000

30,000 20,000 10,000

8,677

12,657

22,433

25,776

Rupees in millions

37,354

42,789

23,136

34,172

40,000

35,616

50,000

43,447

48,250

60,000

-00

2014

BAF

MCB

ABL

UBL

NBP

HBL

2015

Medium Size Banks The medium sized banks experienced mixed results, with Askari, HMB, Faysal and NIB reporting a significant increase.

15,368 15,565

18,000

DIB

1,901 2,959

926 712

Summit

2,000

36 693

2,589 3,768

4,029

4,000

2,442 3,596

3,552

Rupees in millions

6,920

7,336

Meezan

6,000

6,899 8,451

8,000

Askari

10,000

5,869 8,337

12,000

12,565

14,000

10,003 12,266

16,000

-00

(108)

(2,000)

BOK

JS

NIB

Soneri

Faysal

SCB

HMB

BAH

2015

2014

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13

14

Banking Survey 2015

Small Banks Small banks also experienced mixed trends in their profitability with ICBC and Citibank reporting significant increase.

5,000

910

1,656

BOT

2014

Islamic Banks 8,451

9,000

6,899

8,000

Rupees in millions

7,000 6,000 5,000 4,000 3,000

217

1,000

406

712

926

2,000

-00

2014

MCBIB financial results have not been shown due to initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Albaraka

DIB

Meezan

2015

69

63

DB

2015

SAMBA

Albaraka

Citibank

Sindh

Silk (1,839)

(3,000)

ICBC

(2,000)

(666) FWB

(1,000)

35

425

815

-00

217

406

131

1,000

1,612

2,000

1,405

3,000

2,075

4,000

2,821

Rupees in millions

6,000

4,603

5,659

7,000

Banking Survey 2015

Spread Spread as per SBP The overall average spread of the industry for last five years as disclosed in SBP Statistical Bulletins was as follows: 2015

2014 2013 2012 In percentage

2011

Weighted average lending rate

9.6

11.1

11.3

12.8

13.6

Weighted average deposit rate

4.1

5.0

5.1

5.8

6.0

Banking spread

5.5

6.1

6.2

7.0

7.6

Average Spread as per survey The average spread of banks included in this survey was 4.2% (2014: 4.7%).

Average Spread of Large Banks as per survey Average spread of large banks in 2015 was 4.7% as compared to 5.4% in 2014.

In percentages

4.7

5.5

5.7 4.3

4.4

4.7

5.1

5.9

5.6

5.4

4.4

5.0

BAF

ABL

MCB

UBL

NBP

HBL

2015

2014

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Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup/return/ interest expense of deposits as a percentage of average deposits at two year ends

15

16

Banking Survey 2015

Average Spread of Medium Size Banks as per survey Average spread of medium sized banks in 2015 was 4.1% as compared to 4.6% in 2014. In percentages 8.2 7.8 3.4

3.9

3.5

4.4 3.8

4.7

4.6 3.8

2.5

2.7 2.6

3.4 2.9

3.8 3.8

4.0

BOK

DIB

Summit

JS

NIB

Soneri

Faysal

SCB

HMB

Meezan

Askari

BAH

2015

5.4

6.5 5.6

5.1

3.8 3.7

Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup/return/ interest expense of deposits as a percentage of average deposits at two year ends

2014

Average Spread of Small Banks as per survey Average spread of small banks in 2015 was 4.0% as compared to 4.5% in 2014.

2.1

2.8 2.3

3.6

4.1 4.1

4.1

4.1

4.6 4.5

5.3

5.9

6.1 4.2 4.3

1.1

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BOT

2014

DB

FWB

2015

SAMBA

Albaraka

Citibank

Sindh

Silk

ICBC

Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup/return/ interest expense of deposits as a percentage of average deposits at two year ends

6.5

6.9

In percentages

Banking Survey 2015

17

Average Spread of Islamic Banks as per survey Average spread of Islamic banks in 2015 was 3.9% as compared to 4.4% in 2014.

In percentages 5.4 4.1

4.1

3.9

3.8

3.8

Albaraka

DIB

Meezan

2015

2014

MCBIB financial results have not been shown due to initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Difference between mark-up/return/ interest earned on loans and advances as a percentage of average loans and advances at two year ends and markup/return/ interest expense of deposits as a percentage of average deposits at two year ends

18

Banking Survey 2015

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Non-Funded Income Non Funded Income as a percentage of net interest income, of banks included in this survey, has decreased from 30.1% in 2014 to 26.1% in 2015. However, in absolute terms the non-funded income has increased by 3.9% from last year.

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

Large Banks In percentages

47.1 33.2

31.3

37.3

37.6

23.3

16.2

MCB

BAF

ABL

UBL

NBP

HBL

2014

18.5

24.7

23.9

26.0

26.3

2015

Net interest income means markup/return/interest earned (before provisions) less mark-up/return/interest expensed

Medium Size Banks

74.6

In percentages 62.6

60.0

13.6 11.7

22.7 27.2

39.5 36.5

BOK

DIB

Summit

JS

NIB

Soneri

39.1

31.3 24.6

Faysal

SCB

HMB

Meezan

Askari

BAH

26.7 25.3

30.9 26.8

34.2 30.0

24.9 19.9

29.1 22.5

18.2 15.0

2015

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts

2014

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Net interest income means markup/return/interest earned (before provisions) less mark-up/return/interest expensed

19

20

Banking Survey 2015

Small Banks

In percentages

135.3 145.8 9.8

BOT

DB

FWB

SAMBA

Albaraka

Citibank

Sindh

Silk

2015

13.3

9.0 13.9

27.7 24.9

41.3 48.1 7.4 6.9

33.5 38.7 (34.3) ICBC (28.7)

Net interest income means markup/return/interest earned (before provisions) less mark-up/return/interest expensed.

186.1 229.0

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

2014

Islamic Banks

2014

MCBIB financial results have not been shown due to initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Albaraka

DIB

2015

27.7

24.9

22.7

27.2

24.9

Meezan

Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.

In percentages

19.9

Non-funded income comprises of fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other nonfund receipts.

Banking Survey 2015

Staff Costs Staff costs averaged approximately 50.9% of total operating expenses in 2015 (2014: 50.9%).

Large Banks

HBL NBP UBL MCB ABL BAF

Staff cost 2015 2014 Rupees in millions 24,430 21,842 29,903 28,828 18,384 16,741 11,390 10,523 10,124 9,711 10,443 9,462 104,674 97,107

Number of staff 2015 2014 Numb ers 15,060 14,123 25,421 25,425 15,132 13,771 12,491 12,301 10,350 10,194 10,320 10,531 88,778 86,341

Cost per staff 2014 2015 Rupees in thousand 1,547 1,622 1,176 1,134 1,215 1,216 912 855 978 953 1,012 898

Number of staff 2015 2014 Num b ers 9,415 8,122 5,913 6,872 8,581 7,429 4,297 3,934 3,860 4,400 5,120 5,357 3,676 3,524 2,759 3,096 3,243 2,697 2,755 2,908 2,497 2,952 2,448 2,083 56,368 51,570

Cost per staff 2015 2014 Rupees in thousand 770 715 942 973 675 783 962 1,060 1,537 1,277 1,108 872 648 685 1,025 1,120 821 743 697 683 728 677 688 687

Number of staff 2015 2014 Num b ers 91 82 3,153 2,906 1,776 1,994 276 301 1,845 1,638 657 602 564 568 105 106 55 59 8,740 8,038

Cost per staff 2015 2014 Rupees in thousand 9,857 7,476 809 796 813 725 2,301 2,173 680 678 1,387 1,208 865 771 4,629 4,509 1,636 1,492

Staff cost includes salaries, allowances, staff retirement benefits.

Medium Size Banks

BAH As kari Meezan HMB SCB Fays al Soneri NIB JS Sum m it DIB BOK

Staff cost 2015 2014 Rupees in m illions 5,805 7,246 5,570 6,688 6,723 5,017 3,786 4,556 5,617 5,934 5,671 4,671 2,519 2,282 3,172 3,090 2,003 2,661 1,882 2,027 1,691 2,149 1,434 1,682 49,946 43,930

Staff cost includes salaries, allowances, staff retirement benefits.

Small Banks

ICBC Silk Sindh Citibank Albaraka SAMBA FWB DB BOT

Staff cost 2015 2014 Rupees in m illions 897 613 2,552 2,312 1,621 1,287 635 654 1,254 1,110 911 727 488 438 486 478 90 88 8,934 7,707

Staff cost includes salaries, allowances, staff retirement benefits.

Islamic Banks

Meezan DIB Albaraka

Staff cost 2015 2014 Rupees in millions 6,723 5,017 2,149 1,691 1,254 1,110 10,126 7,818

Number of staff 2015 2014 Numb ers 8,581 7,429 2,952 2,497 1,845 1,638 13,378 11,564

Cost per staff 2015 2014 Rupees in thousand 783 675 728 677 680 678

MCBIB financial results have not been shown due to initial years of operations.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Staff cost includes salaries, allowances, staff retirement benefits.

21

22

Banking Survey 2015

Remuneration of Executives Large Banks

Remuneration of executives

HBL * NBP UBL * MCB ABL BAF *

CEO Remuneration Remuneration of Executives Number of Executives 2015 2014 2015 2014 2015 2014 Rupees in thousands Numb ers 75,151 53,178 11,614,998 10,245,448 4,507 3,583 71,093 47,137 5,366,137 5,623,279 1,803 1,792 127,305 246,520 8,138,206 7,280,128 1,947 1,784 84,696 73,684 3,581,948 3,182,059 1,216 1,026 46,299 43,276 3,783,383 3,631,007 1,319 1,314 97,114 92,499 5,107,217 4,490,721 1,808 1,603 501,658 556,294 37,591,889 34,452,642 12,600 11,102

Medium Size Banks

Remuneration of executives

BAH As kari Meezan * HMB SCB * Fays al * Soneri * NIB JS Sum m it DIB BOK

CEO Remuneration Remuneration of Executives Number of Executives 2015 2014 2015 2014 2015 2014 Rupees in thousands Num b ers 34,078 32,851 3,684,755 2,717,712 1,592 1,212 74,294 44,127 2,511,005 2,089,949 722 685 67,989 61,181 1,873,952 1,336,565 857 582 71,595 60,678 2,632,934 2,408,988 1,092 1,069 69,456 51,128 3,018,453 2,657,978 1,245 1,131 45,079 48,816 1,789,248 1,829,160 601 637 64,441 59,175 1,384,443 1,152,321 626 595 51,422 133,485 1,645,813 1,889,206 780 759 24,900 20,621 1,502,654 1,074,684 692 426 32,420 26,400 872,110 865,656 356 340 50,773 42,178 870,862 758,701 339 255 21,493 7,292 178,102 158,927 56 51 607,940 587,932 21,964,331 18,939,847 8,958 7,742

Small Banks

Remuneration of executives

ICBC * Silk Sindh * Citibank Albaraka SAMBA FWB DB * BOT

CEO Remuneration Remuneration of Executives Number of Executives 2015 2014 2015 2014 2015 2014 Rupees in thousands Num b ers 67,942 71,199 431,715 538,430 53 56 86,127 72,919 1,257,672 1,174,255 437 387 74,201 58,194 687,809 539,275 271 217 69,594 72,878 430,021 533,810 123 150 50,865 45,256 524,401 487,250 244 221 61,614 51,333 498,170 419,338 184 161 28,080 20,862 183,946 156,895 96 84 45,595 40,337 230,821 212,733 63 65 16,152 16,356 37,068 33,798 18 11 500,170 449,334 4,281,623 4,095,784 1,489 1,352

Islamic Banks

Remuneration of executives

Meezan * DIB Albaraka

CEO Remuneration Remuneration of Executives Number of Executives 2015 2014 2015 2014 2015 2014 Rupees in thousands Numb ers 61,181 1,873,952 1,336,565 857 582 67,989 758,701 339 255 50,773 42,178 870,862 524,401 487,250 244 221 50,865 45,256 1,058 169,627 148,615 3,269,215 2,582,516 1,440

MCBIB financial results have not been shown due to initial years of operations. The above information has been obtained from the note “Compensation of Directors and Executives” of the Financial Statements of the Banks. However, for the institutions marked with a steric *, information about certain benefits such as performance bonus and shares options scheme is disclosed in other notes. In most cases the information has been disclosed in aggregate with either key management personnel or with executives. The amount paid to CEO is not identified separately. Accordingly those benefits are not included in the CEO remuneration. The CEO remuneration disclosed above have been taken from the un-consolidated financial statements.

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Loans and Advances Total loans and advances of banks under review have increased by 5.1% in 2015 (2014: 10.3%) to Rs. 4,890 billion at 31 December 2015 (2014: Rs. 4,652 billion). The growth of various categories of banks was as follows: 2015 2.9% 9.6% 2.0% 27.4%

Large Banks Medium Size Banks Small Banks Islamic Banks

2014 8.7% 10.9% 27.5% 40.0%

Growth in Loans and Advances Large Banks

HBL NBP UBL MCB ABL BAF

Annual increase 2014-15 2013-14 In percentages 6.2 4.9 (5.1) 2.7 3.0 11.4 3.4 20.2 4.6 14.2 12.7 11.3 2.9 8.7

Gross Advances 2014 2013 Rupees in millions 702,562 661,476 630,422 694,385 731,980 713,043 529,915 514,283 461,675 333,815 322,759 268,471 340,812 325,868 285,411 343,492 304,820 273,827 2,944,981 2,861,186 2,632,849 2015

Annualised Increase (2013 – 15) In percentages

HBL

5.6

(1.3) NBP UBL

7.1

MCB ABL BAF

11.5 9.3 12.0

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

23

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Banking Survey 2015

Medium Size Banks

BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB BOK

Annual increase 2014-15 2013-14 In percentages 14.0 8.2 14.9 3.5 17.7 37.3 (0.4) 4.6 (14.6) (10.9) (1.0) 0.2 4.3 10.5 14.8 12.5 23.1 83.4 6.8 18.7 76.7 64.2 (7.2) 12.8 9.6 10.9

Gross Advances 2014 2013 Rupees in millions 214,273 187,973 173,652 228,419 198,851 192,175 215,776 183,286 133,475 150,076 150,739 144,144 128,112 150,025 168,427 202,543 204,676 204,343 120,617 115,614 104,673 135,028 117,654 104,584 79,402 64,502 35,170 83,099 77,804 65,569 106,651 60,350 36,759 40,137 43,243 38,339 1,704,133 1,554,717 1,401,310 2015

Annualised Increase (2013 – 15) In percentages BAH

11.1

Askari

9.0

Meezan HMB (12.8)

27.1 2.0

SCB (0.4) Faysal Soneri

7.3

NIB

13.6

JS

50.3

Summit

12.6

DIB BOK

70.3 2.3

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Small Banks

ICBC Silk Sindh Citibank Albaraka SAMBA FWB DB BOT

Annual increase 2014-15 2013-14 In percentages 15.0 56.3 4.1 4.8 13.4 55.1 (22.6) 84.9 1.4 26.8 9.8 16.3 (1.6) (2.8) (5.2) 51.0 14.7 28.6 2.0 27.5

Gross Advances 2014 2013 Rupees in millions 6,999 6,087 3,894 67,045 64,417 61,470 46,708 41,204 26,565 24,460 31,621 17,099 50,548 49,834 39,314 26,260 23,916 20,562 9,253 9,401 9,669 6,667 7,034 4,658 2,589 2,257 1,754 240,529 235,771 184,985

2015

Annualised Increase (2013 – 15) In percentages ICBC Silk

34.1 4.4

Sindh

32.6

Citibank Albaraka SAMBA

19.6 13.4 13.0

(2.2) FWB DB BOT

19.6 21.5

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25

26

Banking Survey 2015

Islamic Banks

Meezan DIB Albaraka

Annual increase 2014-15 2013-14 In percentages 17.7 37.3 76.7 64.2 1.4 26.8 27.1

40.0

Gross Advances 2014 Rupees in millions 215,776 183,286 106,651 60,350 50,548 49,834

2015

372,975

293,470

2013 133,475 36,759 39,314 209,548

MCBIB financial results have not been shown due to initial years of operations.

Annualized Increase (2013 – 15) In percentages

Meezan

27.1

DIB

Albaraka

70.3

13.4

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Banking Survey 2015

Market Share of Loans and Advances

HBL NBP UBL BAF ABL MCB Askari Meezan BAH Faysal HMB Less than 3%

2014 2015 In percentages 14.4 14.2 14.2 15.7 11.1 10.8 6.6 7.0 7.0 7.0 6.9 6.8 4.7 4.3 3.9 4.4 4.0 4.4 4.1 4.4 3.2 3.1 18.7 19.1 100 100

2014 2015 Rupees in millions 661,476 702,562 694,385 731,980 529,915 514,283 343,492 304,820 325,868 340,812 333,815 322,759 228,419 198,851 215,776 183,286 214,273 187,973 202,543 204,676 150,739 150,076 864,963 933,575 4,889,643 4,651,674

Less than 3% 19.1% HBL 14.4%

HMB 3.1% Faysal 4.1%

NBP 14.2%

BAH 4.4%

UBL 10.8%

Meezan 4.4% Askari 4.7%

MCB 6.8%

ABL 7.0%

BAF 7.0%

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

27

28

Banking Survey 2015

Banks with less than 3% market share 2015 2014 In percentages 2.8 2.5 2.6 3.2 2.5 2.5 2.2 1.3 1.7 1.7 1.6 1.4 1.4 1.4 1.0 1.1 1.0 0.9 0.8 0.9 0.5 0.5 0.5 0.8 0.2 0.2 0.1 0.1 0.1 0.2 0.1 0.0 19.1 18.7

NIB SCB Soneri DIB Summit JS Silk Albaraka Sindh BOK SAMBA Citibank FWB ICBC DB BOT

Citibank SAMBA 0.5% 0.5% BOK 0.8% Sindh 1.0% Albaraka 1.0%

2015 2014 Rupees in millions 135,028 117,654 128,112 150,025 120,617 115,614 106,651 60,350 83,099 77,804 79,402 64,502 67,045 64,417 50,548 49,834 46,708 41,204 40,137 43,243 26,260 23,916 24,460 31,621 9,253 9,401 6,999 6,087 6,667 7,034 2,589 2,257 933,575 864,963

FWB 0.2%

ICBC 0.1%

DB 0.1% BOT 0.1% NIB 2.8%

Silk 1.4%

SCB 2.6%

JS 1.6% Soneri 2.5% Summit 1.7%

DIB 2.2%

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Liquidity (Average Advances to Average Deposits)

29

The total average advances to total average deposits ratio of the banks included in this survey has decreased to 48.1% in 2015 from 50.2% in 2014 due to growth rate of deposits being higher than growth rate of advances.

Large Banks Advances* 2014

2015 HBL NBP UBL MCB ABL BAF

679,570 686,549 508,252 317,491 325,201 326,062 2,843,125

2013 2015 Rupees in millions 606,869 1,634,944 701,312 1,431,535 444,425 1,119,953 254,814 706,240 270,482 734,546 261,308 640,137 2,539,210 6,267,355

640,367 721,785 493,346 306,757 307,458 290,143 2,759,856

Deposits 2014

2013

1,524,645 1,234,405 951,902 688,270 667,864 605,957 5,673,043

1,401,230 1,101,845 889,526 632,309 608,407 525,526 5,158,843

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits

In percentages

48.7

49.5

45.1

45.3

42.5

44.8

50.9

48.3

60.9

52.8

42.6

41.8

BAF

ABL

MCB

UBL

NBP

HBL

2015

2014

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Average advances (excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits) to average deposits ratio Average advances to average deposits ratio

30

Banking Survey 2015

Medium Size Banks 2015 BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB BOK

191,159 218,092 202,177 127,359 112,225 186,735 110,998 120,891 74,156 77,801 102,099 38,545 1,562,237

Advances* 2014 166,500 190,897 172,520 131,675 136,700 186,236 93,851 103,535 60,844 72,809 57,641 41,642 1,414,850

2013 2015 Rupees in millions 155,084 516,198 183,222 433,130 124,086 471,821 123,531 403,209 151,957 327,121 185,176 292,130 96,726 185,222 91,763 130,400 33,194 140,355 61,356 119,742 34,821 136,743 36,845 117,292 1,277,761 3,273,363

Deposits 2014

2013

446,311 387,535 380,422 319,948 304,306 283,346 163,250 105,103 107,430 105,222 83,844 92,264 2,778,981

386,099 335,173 289,811 247,508 296,377 271,134 140,580 104,888 80,055 106,256 67,639 77,218 2,402,738

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.

In percentages

DIB

46.3 38.3

61.0 72.4

50.2 54.5

Soneri

SCB

62.7 58.8

48.1 39.4

HMB

Faysal

45.0 35.8

Meezan

67.0 64.8

44.3 44.0

machinery and long-term

38.6 37.2

locally manufactured

51.8 49.8

refinance, finance against

Summit

(excluding export

63.4 66.9

93.0 95.3

Average advances

financing against export

2014

Average advances to average deposits ratio

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BOK

2015

JS

average deposits ratio

NIB

included in deposits) to

Askari

counter refinance is not

BAH

oriented projects as its

Banking Survey 2015

31

Small Banks Advances* 2014

2015 ICBC Silk Sindh Citibank Albaraka SAMBA FWB DB BOT

6,999 64,946 45,136 24,460 48,483 24,303 9,201 6,667 2,589 232,784

6,087 61,217 6,956 31,621 47,844 20,785 9,335 6,804 2,257 192,906

Deposits 2014

2013 2015 Rupees in millions 26,949 3,894 58,060 81,098 83,921 19,185 61,743 17,099 37,112 71,644 38,844 18,090 9,620 15,163 4,228 11,977 1,754 5,223 396,562 169,042

9,501 68,770 61,884 48,144 80,223 31,642 13,449 12,664 3,271 329,548

2013 14,987 69,433 45,756 40,936 75,647 24,633 18,338 15,849 4,051 309,630

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.

In percentages 86.3 84.2 54.8 57.1

54.7

59.6 64.8

69.1 64.0

54.5 63.4

38.7

24.3 35.7

40.8 35.9

54.7 51.0

Average advances (excluding export refinance, finance against locally manufactured machinery and long-term financing against export

BOT

DB

FWB

SAMBA

Albaraka

Citibank

Sindh

Silk

ICBC

2015

oriented projects as its counter refinance is not included in deposits) to

2014

average deposits ratio Average advances to average deposits ratio

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

32

Banking Survey 2015

Islamic Banks 2015 Meezan DIB Albaraka

202,177 102,099 48,483 352,759

Advances* 2014

2013 2015 Rupees in millions 124,086 471,821 34,821 136,743 37,112 71,644 196,019 680,208

172,520 57,641 47,844 278,005

Deposits 2014

2013

380,422 83,844 80,223 544,489

289,811 67,639 75,647 433,097

MCBIB financial results have not been shown due to initial years of operations.

* Excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits.

In percentages

54.5

63.4

61.0

72.4

44.3

44.0

Albaraka

DIB

Meezan

Average advances (excluding export refinance, finance against locally manufactured machinery and long-term financing against export oriented projects as its counter refinance is not included in deposits) to average deposits ratio Average advances to average deposits ratio

2015

2014

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Deposits Deposits of banks included in this survey increased by 13.2% to Rs. 9,937 billion at 31 December 2015 compared to Rs. 8,782 billion at 31 December 2014.

Growth in Deposits Large Banks Annual Increase 2014-15 2013-14 In percentages 7.2 8.8 16.0 12.0 17.7 7.0 2.6 8.9 10.0 9.8 5.6 15.3 10.5 10.0

HBL NBP UBL MCB ABL BAF

Deposits 2014 2013 Rupees in millions 1,634,944 1,524,645 1,401,230 1,431,535 1,234,405 1,101,845 1,119,953 951,902 889,526 706,240 688,270 632,309 734,546 667,864 608,407 640,137 605,957 525,526 6,267,355 5,673,043 5,158,843 2015

Annualised Increase (2013 – 15) In percentages HBL

8.0

NBP

14.0

UBL

MCB

ABL

BAF

12.2

5.7

9.9

10.4

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33

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Banking Survey 2015

Medium Size Banks

BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB BOK

Annual Increase 2014-15 2013-14 In percentages 15.7 15.6 11.8 15.6 24.0 31.3 26.0 29.3 7.5 2.7 3.1 4.5 13.5 16.1 24.1 0.2 30.6 34.2 13.8 (1.0) 63.1 24.0 27.1 19.5 17.8 15.7

Deposits 2014 2013 Rupees in millions 516,198 446,311 386,099 433,130 387,535 335,173 471,821 380,422 289,811 403,209 319,948 247,508 327,121 304,306 296,377 292,130 283,346 271,134 185,222 163,250 140,580 130,400 105,103 104,888 140,355 107,430 80,055 119,742 105,222 106,256 136,743 83,844 67,639 117,292 92,264 77,218 3,273,363 2,778,981 2,402,738 2015

Annualised Increase (2013 – 15) In percentages BAH

15.6

Askari

13.7

Meezan

27.6

HMB

27.6

SCB Faysal

5.1 3.8

Soneri

14.8

NIB

11.5

JS Summit

32.4 6.2

DIB BOK

42.2 23.2

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Banking Survey 2015

Small Banks Annual Increase 2014-15 2013-14 In percentages ICBC Silk Sindh Citibank Albaraka SAMBA FWB DB BOT

183.7 17.9 35.6 28.2 (10.7) 22.8 12.7 (5.4) 59.7 20.3

(36.6) (1.0) 35.2 17.6 6.0 28.5 (26.7) (20.1) (19.2) 6.4

2015

Deposits 2014 2013 Rupees in millions

26,949 81,098 83,921 61,743 71,644 38,844 15,163 11,977 5,223 396,562

9,501 68,770 61,884 48,144 80,223 31,642 13,449 12,664 3,271 329,548

14,987 69,433 45,756 40,936 75,647 24,633 18,338 15,849 4,051 309,630

Annualised Increase (2013 – 15) In percentages ICBC Silk

34.1 8.1

Sindh

35.4

Citibank

22.8

(2.7) Albaraka SAMBA (9.1) (13.1)

25.6

FWB DB BOT

13.6

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Banking Survey 2015

Islamic Banks

Meezan DIB Albaraka

Annual Increase 2014-15 2013-14 In percentages 24.0 31.3 63.1 24.0 (10.7) 6.0 24.9 25.7

Deposits 2014 Rupees in millions 471,821 380,422 136,743 83,844 71,644 80,223 680,208 544,489

2015

2013 289,811 67,639 75,647 433,097

MCBIB financial results have not been shown due to initial years of operations.

Annualised Increase (2013 – 15)

In percentages

Meezan

27.6

DIB

(2.7) Albaraka

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42.2

Banking Survey 2015

Market Share of Customer Deposits 2015 2014 In percentages 17.0 17.7 13.0 12.7 11.3 11.1 7.4 7.7 7.3 8.0 6.3 6.8 5.4 5.2 4.9 4.5 4.5 4.6 4.1 3.7 3.4 3.6 3.0 3.2 12.4 11.2

HBL NBP UBL ABL MCB BAF BAH Meezan Askari HMB SCB Faysal Less than 3%

100

2015 2014 Rupees in millions 1,602,971 1,490,747 1,228,365 1,064,953 1,067,395 930,129 700,752 648,668 688,913 675,990 589,565 571,821 503,693 436,653 465,674 375,670 428,002 386,638 389,858 312,808 320,620 302,584 279,583 272,935 1,149,170 942,354

100

9,414,561

8,411,950

* Deposits from financial institutions have been excluded to analyse deposits from customer

Faysal 3.0% SCB 3.4%

Less than 3% 12.4% HBL 17.0%

HMB 4.1% NBP 13.0%

Askari 4.5% Meezan 4.9% BAH 5.4%

UBL 11.3% BAF 6.3%

MCB 7.3%

ABL 7.4%

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Banking Survey 2015

Banks with less than 3% market share 2015 2014 In percentages 1.8 1.9 1.4 1.2 1.3 1.0 1.2 1.1 1.2 1.2 1.2 1.2 0.9 0.7 0.9 0.8 0.7 0.8

Soneri JS DIB BOK Summit NIB Sindh Silk Albaraka Citibank SAMBA ICBC FWB DB BOT

0.6 0.4 0.3 0.2 0.2 0.1 12.4

0.6 0.4 0.1 0.2 0.2 0.0 11.2

2015 2014 Rupees in millions 171,171 159,240 130,640 99,908 126,517 83,684 117,265 92,125 112,951 97,248 110,587 99,385 80,937 59,281 77,682 65,900 67,560 70,035 60,251 34,334 26,929 15,162 11,974 5,210 1,149,170

46,862 29,976 9,444 13,347 12,654 3,266 942,354

* Deposits from financial institutions have been excluded to analyse deposits from customers.

SAMBA 0.4%

ICBC 0.3%

FWB 0.2%

DB 0.2%

BOT 0.1%

Citibank 0.6%

Soneri 1.8%

Albaraka 0.7% Silk 0.9%

JS 1.4%

Sindh 0.9%

DIB 1.3% NIB 1.2%

Summit 1.2%

BOK 1.2%

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Credit Ratings Large Banks Banks

Rating Agency

Credit Rating Assigned Short Term

Long Term

Habib Bank Limited

JCR-VIS

A-1+

AAA

National Bank of Pakistan

PACRA

A1+

AAA

JCR-VIS

A-1+

AAA

United Bank Limited

JCR-VIS

A-1+

AA+

MCB Bank Limited

PACRA

A1+

AAA

Allied Bank Limited

PACRA

A1+

AA+

Bank Alfalah Limited

PACRA

A1+

AA

Medium Size Banks Banks

Rating Agency

Credit Rating Assigned Short Term

Long Term

Bank Al-Habib Limited

PACRA

A1+

AA+

Askari Bank Limited

JCR-VIS

A-1+

AA

Meezan Bank Limited

JCR-VIS

A-1+

AA

The Bank of Punjab

PACRA

A1+

AA-

Habib Metropolitan Bank Limited

PACRA

A1+

AA+

Standard Chartered Bank (Pakistan) Limited

PACRA

A1+

AAA

Faysal Bank Limited

PACRA

A1+

AA

JCR-VIS

A-1+

AA

Soneri Bank Limited

PACRA

A1+

AA-

NIB Bank Limited

PACRA

A1+

AA-

JS Bank Limited

PACRA

A1+

A+

Summit Bank Limited

JCR-VIS

A-1

A

Dubai Islamic Bank (Pakistan) Limited

JCR-VIS

A-1

A+

The Bank of Khyber

PACRA

A1

A

JCR-VIS

A-1

A

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Banking Survey 2015

Small Banks Banks

Rating Agency

Credit Rating Assigned Short Term

Long Term

Industrial and Commercial Bank of China Limited (Pakistan Branches)

Moody’s

P-1

A1

Silkbank Limited

JCR-VIS

A-2

A-

Sindh Bank Limited

JCR-VIS

A-1+

AA

Citibank N.A. (Pakistan Branches)

Moody’s

P-1

A2

Albaraka Bank (Pakistan) Limited

PACRA

A1

A

JCR-VIS

A-1

A

Samba Bank Limited

JCR-VIS

A-1

AA

First Women Bank Limited

PACRA

A2

BBB+

Standard & Poor's

A-2

BBB+

Moody’s

P-2

A3

Fitch

F1

A-

Standard & Poor’s

A-1

A+

Moody’s

P-1*

A1

Fitch

F1

A

Deutsche Bank AG (Pakistan Branches)

The Bank of Tokyo Mitsubishi UFJ, Limited – Karachi Branch

* Deposit Rating only

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Banking Survey 2015

Number of Branches and Legend (including sub-branches) Large Banks Banks

Legend

Habib Bank Limited National Bank of Pakistan United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited

HBL NBP UBL MCB ABL BAF

Number of Branches * 2015 2014 1,716 1,644 1,424 1,377 1,330 1,313 1,257 1,232 1,050 1,000 653 648

Medium Size Banks Banks

Legend

Bank Al-Habib Limited Askari Bank Limited Meezan Bank Limited Habib Metropolitan Bank Limited Standard Chartered Bank (Pakistan) Limited Faysal Bank Limited Soneri Bank Limited NIB Bank Limited JS Bank Limited Summit Bank Limited Dubai Islamic Bank (Pakistan) Limited The Bank of Khyber

BAH Askari Meezan HMB SCB Faysal Soneri NIB JS Summit DIB BOK

Number of Branches * 2015 2014 423 351 424 321 551 428 237 201 101 116 280 274 266 246 171 171 277 238 192 188 200 175 130 116

Small Banks Banks

Industrial and Commercial Bank of China Limited (Pakistan Branches) Silkbank Limited Sindh Bank Limited Citibank N.A (Pakistan Branches) Albaraka Bank (Pakistan) Limited Samba Bank Limited First Women Bank Limited Deutsche Bank AG (Pakistan Branches) The Bank of Tokyo Mitsubishi UFJ, Limited – Karachi Branch MCB Islamic Bank Limited

Legend

ICBC Silk Sindh Citibank Albaraka SAMBA FWB DB BOT MCBIB

Number of Branches * 2015 2014 3 88 263 3 135 34 42 3

3 88 230 3 130 28 41 3

1 6

1 -

*As at 31 December

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Banking Survey 2015

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Banking Survey 2015

Definitions Average Advances

The average of opening and closing gross advances at two year ends is taken.

Average Assets

The average of opening and closing total assets at two year ends is taken.

Average Deposits

The average of opening and closing deposits at two year ends is taken.

Average Equity

The average of opening and closing equity at two year ends is taken.

Annual Increase

The percentage change compared to the previous year.

Annualised Increase

The percentage change over the last two years on annualised basis, i.e. Figure (year 2015) - 1 Figure (year 2013)

Cost of Funds

Mark-up / return / interest expense

CASA

Current and saving customer deposits to total customer deposits

Equity

Equity includes share capital / head office capital account, reserves, unappropriated profit / accumulated loss, noncontrolling interest and surplus / deficit on revaluation of assets.

Gross Advances

Loans, cash credits, overdrafts, ijaras, etc. and local & foreign bills discounted & purchased before provisions.

Impairment Cover

Number of times impairment charge on loans and advances and investments is covered by net profits before charging impairment.

Interest Bearing Assets

Interest bearing assets means: cash and balances with treasury banks, balances with other banks, lending to financial institutions, fixed income investments and advances (excluding non-performing assets).

Interest Bearing Liabilities

Interest bearing liabilities means: borrowings, deposits and other accounts, sub-ordinated loans and liabilities against assets subject to finance lease.

Market Capitalization

Product of total outstanding number of ordinary shares and market price as at year end.

Non-funded Income

Fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts.

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Banking Survey 2015

Non-markup / Non-Interest Income / Other Income

Includes fee, commission and brokerage income, dividend income, income from dealing in foreign currencies, gain on sale of securities, unrealised profit on revaluation of investments classified as held for trading, share of profit from joint venture and associate and other income.

Net Interest Margin

Mark-up / return / interest earned (before provisions) as a percentage of interest bearing assets less mark-up / return / interest expensed as a percentage of interest bearing liabilities.

Net Provisions

Charge & reversal of provision against non-performing advances, against off balance sheet obligations, for diminution in value of investments, bad debts directly written-off and recoveries of previously written-off debts.

Other Comprehensive Income

Includes effect of translation of net investment in foreign branches, gains and losses on re-measurement of actuarial liability, surplus / (deficit) on revaluation of fixed assets and investments, surplus / (deficit) arising on revaluation of assets of associated undertaking i.e. all form of other comprehensive income including those taken below equity in accordance with the requirements of Companies Ordinance 1984 / SBP directives.

Operating Cost

Includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.

Operating Fixed Assets

Operating fixed assets include intangible assets.

Other Assets

Other assets include deferred tax assets.

Other Liabilities

Other liabilities include deferred tax liabilities and liabilities against assets subject to finance lease.

Remuneration per Executive

Remuneration of executives divided by number of executives.

Return on Average Assets

Profit after tax as a percentage of average total assets.

Return on Average Equity

Profit after tax as a percentage of average equity.

Spread

Difference between mark-up / return / interest earned on loans and advances as a percentage of average loans and advances (net of provision), at two year ends, and mark-up / return / interest expense of deposits as a percentage of average deposits, at two year ends.

Staff Cost

Salaries, allowances, etc., staff retirement benefits, cost of outsourced staff and cost of redundancy / voluntary retirement / severance excluding Workers’ Welfare Fund.

Taxation

Charge for current (including prior) and deferred taxation in the profit and loss account.

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kpmg

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Offices in Pakistan Karachi Office Sheikh Sultan Trust Building No. 2 Beaumont Road Karachi 75300 Phone +92 (21) 3568 5847 Fax +92 (21) 3568 5095 eMail [email protected] Lahore Office 2nd Floor, Servis House 2-Main Gulberg, Jail Road Lahore 54000 Phone +92 (42) 3579 0901-6 Fax +92 (42) 3579 0907 eMail [email protected] Islamabad Office Sixth Floor, State Life Building Blue Area Islamabad Phone +92 (51) 282 3558 Fax +92 (51) 282 2671 eMail [email protected] www.kpmg.com.pk

© 2016 KPMG Taseer Hadi & Co., a Partnership firm registered in Pakistan and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. The KPMG name and logo are registered trademarks or trademarks of KPMG International.