Annual Accounts 2013

8/12/2019 Annual Accounts 2013

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MCB Bank Limited

Financial Statements

For the year ended December 31, 2013


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MCB BANK LIMITED

STATEMENT OF FINANCIAL POSITIONAS AT DECEMBER 31, 2013

Note 2013 2012 2011

Restated Restated

ASSETS

(------------Rupees i t!ous"#----------------$

Cash and balances with treasry banks ! "#,#$!,1"0 "%,$20,12# "3,122,"2

Balances with other banks % 1,"3!,#$! 1,1#1,#%$ 2,2&1,2!

Lendin's to (inancial instittions & 1,22$,!3& 1,""1,$%2 #"",0&

)n*estments + net # $$#,00!,01# $02,0!&,#1! 31!,!"1,!1

d*ances + net 10 2$&,2$2,#!" 23#,"&3,320 22%,"&0,13

-.eratin' (i/ed assets 11 2&,"#",33& 23,%3&,$"$ 22,00%,#0

De(erred ta/ assets + net + + +

-ther assets + net 12 2!,#"!,31" $1,"20,$32 31,1&3,%!

LIABILITIES

&1","0&,3%1 %!%,0%$,!#% !"3,%&2,2#

Bills .ayable 1$ 10,13&,%2! #,!,2&$ #,$!!,&1

Borrowin's 1" 3&,"$2,!!0 %&,#"1,103 3#,100,!2

De.osits and other acconts 1! !32,330,2&! "$",0!0,%2& $#1,1&&,%1

Sb+ordinated loan + + +

Liabilities a'ainst assets sbect to (inance lease + + +

De(erred ta/ liabilities + net 1% $,201,3%3 #,"2#,%2% !,$&%,"2

-ther liabilities 1& 20,0!$,3$" 21,1!!,1!! 1&,3%&,3%

NET ASSETS

%0",2%%,3#0 !!$,!0$,00& "!$,!22,0"

110,230,#&1 102,$%0,! ,1!0,23

Rep%esete# &'

Share ca.ital 1# 10,11&,$!1 #,1#&,!01 &,3!2,3!

Reser*es 20 $!,!01,21$ $$,2"3,2%0 $2,1&!,$!na..ro.riated .ro(it $0,""2,0$3 3",$2$,#21 2&,%23,#2

#%,2%1,%1& &&,&%!,%#2 %#,2%2,%!Sr.ls on re*alation o( assets + net o( ta/ 21 12,#"#,2!3 13,"#3,% #,&&%,$%

110,230,#&1 102,$%0,! ,1!0,23

Contin'encies and commitments 22

he anne/ed notes 1 to $! and nne/res ) to (orm an inte'ral .art o( these (inancial statements4

P%esi#et "# C!ie E)e*uti+e Di%e*to% Di%e*to

Di%e*to%


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MCB BANK LIMITEDPROFIT AND LOSS ACCONTFOR TE .EAR ENDED DECEMBER 31, 2013

Note 2013 2012

Restated

(Rupees i t!ous"#$

Mark+. 5 retrn 5 interest earned 2$ !",0!$,123 !&,3"!,1#1Mark+. 5 retrn 5 interest e/.ensed 2" 2%,1#",$ 2%,"00,01#

6et mark+. 5 interest income 3%,&!&,22# $0,&"!,1%2

7ro*ision 5 8re*ersal9 (or dimintion in the *ale o( in*estments +net #43 8!,&3$9 83,0$$9

7ro*ision 5 8re*ersal9 a'ainst loans and ad*ances + net 104"42 82,&2&,%&39 $&0,#03

Bad debts written o(( directly 104!41 + 20!

6et mark+. 5 interest income a(ter.ro*isions

82,&3",!1%9 $%&,0!"

$0,%03,&$! $0,3%&,10%

No-/"%-up ite%est i*o/e

Fee, commission and brokera'e income !,%$1,$0$ ",#3$,$%2

Di*idend income #32,%1% 1,1#%,!1"

)ncome (rom dealin' in (orei'n crrencies #1!,"%2 &22,&"!

:ain on sale o( secrities + net 2! 2,130,3$1 &2$,"3#nreali;ed 'ain on re*alation o(in*estments

classi(ied as held (or tradin' + +

-ther income 2% $$#,!0$ 3%3,&$#

otal non+mark+. 5 interest income 11,1%0,!3& #,1"3,331

No-/"%-up ite%est e)peses

"1,&%$,$&$ $#,"31,$3&

dministrati*e e/.enses 2& 1&,%0#,#!# 1%,$%!,&!2

-ther .ro*ision 5 8re*ersal9 + net 1243 8"2,2&"9 81&%,30"9

-ther char'es 2# #2&,"#" "##,#%$

otal non+mark+. 5 interest e/.enses 1#,"&!,2%# 1%,&,"31


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P%esi#et "# C!ie E)e*uti+eDi%e*to%

Di%e*to% Di%e*to%


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MCB BANK LIMITED

STATEMENT OF COMPREENSIE INCOMEFOR TE .EAR ENDED DECEMBER 31, 2013

2013 2012

Restated(Rupees i t!ous"#$

P%oit "te% t") o% t!e 'e"%21,$#",33

& 20,!%3,002

Ot!e% *o/p%e!esi+e i*o/e

Ite/s t!"t i44 ot &e %e*4"ssiie# to p%oit "# 4oss "**out

Remeasrement o( de(ined bene(it .lans + net o( ta/ $#,3%3 !2#,&20

Ite/s t!"t /"' &e %e*4"ssiie# to p%oit "# 4oss "**out


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MCB BANK LIMITED

CAS FLO6 STATEMENTFOR TE .EAR ENDED DECEMBER 31, 2013

Note 2013 2012

Restated

C"s! 4os %o/ ope%"ti7 "*ti+ities

(Rupees i t!ous"#$

7ro(it be(ore ta/ation 32,2&&,20" 31,!$1,#0%Less= Di*idend income 8#32,%1%9 81,1#%,!1"9

A#8ust/ets o% o-*"s! *!"%7es

31,3"",$&& 30,$$$,2#2

De.reciation 1142 1,"$1,31$ 1,3%&,#%0

morti;ation 1143 2!0,$2$ 2"#,#32

7ro*ision 5 8re*ersal9 a'ainst loans and ad*ances + net 104"42 82,&2&,%&39 $&0,#03

7ro*ision 5 8re*ersal9 (or dimintion in the *ale o( in*estments + net #43 8!,&3$9 83,0$$9

-ther .ro*ision 5 8re*ersal9 + net 1243 8"2,2&"9 81&%,30"9

Bad debts written o(( directly 104!41 + 20!

7ro*ision (or >orkers? >el(are Fnd 2# !$",%!$ !$1,0%"

Char'e 5 8re*ersal9 (or de(ined bene(it .lan 2& 81,311,%!%9 81,!0&,00&9

:ain on dis.osal o( (i/ed assets + net 2% 8$2,!&%9 822,"&!9

81,%#$,&"$9 #$0,1$3

(I*%e"se$ #e*%e"se i ope%"ti7 "ssets2#,"!0,!3$ 31,3&$,$3"

Lendin's to (inancial instittions 32!,&3$ 8"#!,3&"9

d*ances + net 8",&30,&!29812,&&&,$

9

-ther assets + net 82,%%&,%309 81,!#$,$!%9

I*%e"se (#e*%e"se$ i ope%"ti7 4i"&i4ities

8&,2&2,%"&981",1%#,3$1

9

Bills .ayable 2$2,$$2 $2#,$!!

Borrowin's 8$0,20",$#29 3#,132,0&"

De.osits and other acconts &%,2!#,""& "3,&%2,01&

-ther liabilities 82,"2#,33$9 2,0"",1%%

$$,%%%,1%$ #",$&&,%$!

De(ined bene(its .aid!!,0"",0"0

111,!#3,&$0

8%0!,3!19 83%0,%"!9

Recei.t (rom .ension (nd 1$,%31,& +

)ncome ta/ .aid 810,3"",0#%9 81$,!22,1329

Net *"s! 4os %o/ ope%"ti7 "*ti+ities !#,%2",$#0 #!,%00,#"2

C"s! 4os %o/ i+esti7 "*ti+ities

6et in*estments in ?a*ailable (or sale? secrities 8"1,033,23"98&1,3&!,2%!

9

6et in*estments in ?held to matrity? secrities $0",#%" 1,2!0,1%2

)n*estment in sbsidiary com.any + 8#$,2##9

Di*idends recei*ed #$0,%$" 1,1#&,$&"

)n*estments in o.eratin' (i/ed assets 8$,!!3,1#!9 83,$0$,!#&9Sale .roceeds o( .ro.erty and [email protected] dis.osed o(( 1%3,0 "%,&31

Net *"s! 4os %o/ i+esti7 "*ti+ities 8"$,1%!,!2298&2,3!&,%&"

9

C"s! 4os %o/ i"*i7 "*ti+ities

Di*idend .aid 812,!%3,33$9 811,&1$,#%39

Net *"s! 4os %o/ i"*i7 "*ti+ities 812,!%3,33$9811,&1$,#%3

9


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"%,1%3,"%# "$,%2%,%&$

Ee*ts o e)*!"7e %"te *!"7es o *"s! "# *"s! e5ui+"4ets !0#,!01 "!",$!#

Cash and cash e@i*alents at end o( the year 3$

"%,%&3,1&0 "",2#3,2"3

!0,&"%,12$ "%,%&3,1&0


P%esi#et "# C!ie E)e*uti+e Di%e*to% Di%e*to%

Di%e*to%


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MCB BANK LIMITED

STATEMENT OF CAN9ES IN E:IT.FOR TE .EAR ENDED DECEMBER 31, 2013

S!"%e

C"pit"4%ese%+es Re+eue Rese%+es Tot"4

Rese%+e o%

S!"%e

E)*!"7e

St"tuto%' 9ee%"4"pp%op%i"te

#

*"pit"4 issue o t%"s4"tio

p%e/iu/ %ese%+e %ese%+e p%oit&ous

s!"%es %ese%+e--------------------------------------------------------------- (Rupees i t!ous"#$ ---------------------------------------------------------------

B"4"*e "s "t De*e/&e% 31, 2011 &,3!2,3!" + #,%02,"2& $2%,0$# 13,$"!, 1&,!00,000 2&,3!!,1%1 %&,#1",003

;,1>2 1?,?00,< 1;,=00,000


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For details o( di*idend declaration and a..ro.riations, .lease re(er note $" to these (inancial statements4


P%esi#et "# C!ie E)e*uti+e Di%e*to% Di %e*to% Di%e*to%


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MCB BANK LIMITED

NOTES TO TE FINANCIAL STATEMENTSFOR TE .EAR ENDED DECEMBER 31, 2013

1. STATS AND NATRE OF BSINESS

MCB Bank Limited 8the ?Bank?9 is a bankin' com.any incor.orated in 7akistan and is en'a'ed incommercial bankin' and related ser*ices4 he Bank?s ordinary shares are listed on all the stocke/chan'es in 7akistan whereas its :lobal De.ository Recei.ts 8:DRs9 re.resentin' two ordinaryshares 82012= two ordinary shares9 are traded on the )nternational -rder Book 8)-B9 system o( theLondon Stock


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he State Bank o( 7akistan has de(erred the a..licability o( )nternational ccontin' Standard 8)S9 3#,?Financial )nstrments= Reco'nition and Measrement? and )S $0, ?)n*estment 7ro.erty? (or Bankin'Com.anies thro'h BSD Circlar 6o4 10 dated 'st 2!, 20024 he Secrities and


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+ )FS 3 + 7ro(it and Loss Sharin' on De.ositsAanary 01,201$


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here are other new and amended standards and inter.retations that are mandatory (or theBank?s accontin' .eriods be'innin' on or a(ter Aanary 1, 201$ bt are considered not to berele*ant or do not ha*e any si'ni(icant e((ect on the Bank?s o.erations and are there(ore notdetailed in these (inancial statements4


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BASIS OF MEASREMENT

4.1 hese (inancial statements ha*e been .re.ared nder the historical cost con*ention e/ce.t thatcertain classes o( (i/ed assets are stated at re*aled amonts and certain in*estments and

commitments in res.ect o( certain (orward e/chan'e contracts ha*e been marked to market and

are carried at (air *ale4

4.2 he (inancial statements are .resented in 7ak R.ees, which is the Bank?s (nctional and.resentation crrency4 he amonts are ronded o(( to the nearest thosand4

4.3 C%iti*"4 "**outi7 esti/"tes "# 8u#7/ets

he .re.aration o( (inancial statements in con(ormity with the a..ro*ed accontin' standardsre@ires the se o( certain critical accontin' estimates4 )t also re@ires the mana'ement toe/ercise its d'ment in the .rocess o( a..lyin' the Bank?s accontin' .olicies4 hile assessin' this re@irement *arios

(actors incldin' the delin@ency in the accont, (inancial .osition o( the borrowers and the

re@irements o( the 7rdential Re'lations are considered4

he amont o( 'eneral .ro*ision is determined in accordance with the rele*ant re'lations

and mana'ement?s d'ment as e/.lained in notes 104"43 and 104"4"4

3) I/p"i%/et o "+"i4"&4e o% s"4e e5uit' i+est/ets

he Bank determines that ?a*ailable (or sale? e@ity in*estments are im.aired when there has

been a si'ni(icant or .rolon'ed decline in the (air *ale below its cost4 he determination o(what is si'ni(icant or .rolon'ed re@ires d'ment4 )n makin' this d'ment, the Banke*alates amon' other (actors, the normal *olatility in share .rice4 )n addition, the im.airment

may be a..ro.riate when there is an e*idence o( deterioration in the (inancial health o( thein*estee and sector .er(ormance, chan'es in technolo'y and o.erational5(inancial cash (lows4


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T")"tio

)n makin' the estimates (or income ta/es crrently .ayable by the Bank, the mana'ement

considers the crrent income ta/ laws and the decisions o( a..ellate athorities on certain

isses in the .ast4

4) F"i% +"4ue o #e%i+"ti+es

he (air *ales o( deri*ati*es which are not @oted in acti*e markets are determined by sin'

*alation techni@es4 he *alation techni@es take into accont the rele*ant interest rates at

the balance sheet date and the rates contracted4

5) Dep%e*i"tio, "/o%ti"tio "# %e+"4u"tio o ope%"ti7 i)e# "ssets

)n makin' estimates o( the de.reciation 5 amorti;ation method, the mana'ement ses themethod which re(lects the .attern in which economic bene(its are e/.ected to be consmedby the Bank4 he method a..lied is re*iewed at each (inancial year end and i( there is achan'e in the e/.ected .attern o( consm.tion o( the (tre economic bene(its embodied inthe assets, the method is chan'ed to re(lect the chan'ed .attern4 Sch chan'e is acconted(or as chan'e in accontin' estimates in accordance with )nternational ccontin' Standard8)S9 & ccontin' 7olicies, Chan'es in ccontin'


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A+"i4"&4e o% s"4e

hese are in*estments, other than those in sbsidiaries and associates, that do not (all nder

the ?held (or tradin'? or ?held to matrity? cate'ories4

)n*estments are initially reco'ni;ed at cost which in case o( in*estments other than ?held (or

tradin'? inclde transaction costs associated with the in*estment4

ll .rchases and sales o( in*estments that re@ire deli*ery within the time (rame established

by re'lation or market con*ention are reco'ni;ed at the trade date4 rade date is the date on

which the Bank commits to .rchase or sell the in*estment4

)n accordance with the re@irements o( the State Bank o( 7akistan, @oted secrities, otherthan those classi(ied as ?held to matrity?, in*estments in sbsidiaries and in*estments inassociates are sbse@ently re+measred to market *ale4 Sr.ls 5 8de(icit9 arisin' on

re*alation o( @oted secrities which are classi(ied as ?a*ailable (or sale?, is taken to ase.arate accont which is shown in the balance sheet below e@ity4 Sr.ls 5 8de(icit9 arisin'

on re*alation o( @oted secrities which are classi(ied as ?held (or tradin'?, is taken to the.ro(it and loss accont, crrently4

n@oted e@ity secrities 8e/cldin' in*estments in sbsidiaries and associates9 are *aled

at the lower o( cost and break+. *ale4 Break+. *ale o( e@ity secrities is calclated with

re(erence to the net assets o( the in*estee com.any as .er the latest a*ailable adited

(inancial statements4 )n*estments classi(ied as ?held to matrity? are carried at amorti;ed cost4

ssociates are all entities o*er which the :ro. has si'ni(icant in(lence bt not control4Sbsidiaries are all entities o*er which the :ro. has the .ower to 'o*ern the (inancial ando.eratin' .olicies accom.anyin' a shareholdin' o( more than one hal( o( the *otin' ri'hts

)n*estments in sbsidiaries and in*estments in associates are carried at cost lessaccmlated im.airment losses, i( any4

7ro*ision (or im.airment in the *ales o( secrities 8e/ce.t debentres, .artici.ation term

certi(icates and term (inance certi(icates9 is made crrently4 7ro*isions (or im.airment in *ale

o( debentres, .artici.ation term certi(icates and term (inance certi(icates are made as .er the

re@irements o( the 7rdential Re'lations issed by the State Bank o( 7akistan4

5.2 S"4e "# %epu%*!"se "7%ee/ets

Secrities sold sbect to a re.rchase a'reement 8re.o9 are retained in the (inancial statements

as in*estments and the conter .arty liability is inclded in borrowin's4 Secrities .rchasednder an a'reement to resell 8re*erse re.o9 are not reco'ni;ed in the (inancial statements asin*estments and the amont e/tended to the conter .arty is inclded in lendin's to (inancial

instittions4 he di((erence between the .rchase 5 sale and re+sale 5 re+.rchase .rice isreco'ni;ed as mark+. income 5 e/.ense on a time .ro.ortion basis, as the case may be4

5.3 A#+"*es

d*ances are stated net o( s.eci(ic and 'eneral .ro*isions4 S.eci(ic .ro*ision is determined onthe basis o( the 7rdential Re'lations and other directi*es issed by the State Bank o( 7akistan

8SB79 and char'ed to the .ro(it and loss accont4 7ro*isions are held a'ainst identi(ied as well asnidenti(ied losses4 7ro*isions a'ainst nidenti(ied losses inclde 'eneral .ro*ision a'ainst

Consmer and Small


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Ope%"ti7 i)e# "ssets "# #ep%e*i"tio

7ro.erty and [email protected], other than land carryin' *ale o( which is not amorti;ed, are stated at

cost or re*aled amont less accmlated de.reciation and accmlated im.airment losses, i(

any4 Land is carried at re*aled amont4 Cost o( .ro.erty and [email protected] o( (orei'n o.erations

incldes e/chan'e di((erences arisin' on crrency translation at year+end rates4

Ca.ital work+in+.ro'ress is stated at cost less accmlated im.airment losses, i( any4 hese are

trans(erred to s.eci(ic assets as and when assets become a*ailable (or se4

De.reciation on all o.eratin' (i/ed assets is char'ed sin' the strai'ht line method in accordancewith the rates s.eci(ied in note 1142 to these (inancial statements and a(ter takin' into accont

residal *ale, i( any4 he residal *ales, se(l li*es and de.reciation methods are re*iewed

and adsted, i( a..ro.riate, at each balance sheet date4

De.reciation on additions is char'ed (rom the month the assets are a*ailable (or se while no

de.reciation is char'ed in the month in which the assets are dis.osed o((4

Sr.ls on re*alation o( land and bildin's is credited to the sr.ls on re*alation accont4

Re*alation is carried ot with s((icient re'larity to ensre that the carryin' amont o( assets

does not di((er materially (rom the (air *ale4 o the e/tent o( the incremental de.reciation

char'ed on the re*aled assets, the related sr.ls on re*alation o( land and bildin's 8net o(

de(erred ta/ation9 is trans(erred directly to na..ro.riated .ro(it4

:ains 5 losses on sale o( .ro.erty and [email protected] are credited 5 char'ed to the .ro(it and loss

accont crrently, e/ce.t that the related sr.ls on re*alation o( land and bildin's 8net o(

de(erred ta/ation9 is trans(erred directly to na..ro.riated .ro(it4

Sbse@ent costs are inclded in the asset?s carryin' amont or are reco'ni;ed as a se.arate

asset, as a..ro.riate, only when it is .robable that (tre economic bene(its associated with the

item will (low to the Bank and the cost o( the item can be measred reliably4 ll other re.airs and

maintenance are char'ed to the .ro(it and loss accont4

5.4.1 It"7i&4e "ssets

)ntan'ible assets are stated at cost less accmlated amorti;ation and accmlated im.airmentlosses, i( any4 )ntan'ible assets are amorti;ed (rom the month when these assets are a*ailable

(or se, sin' the strai'ht line method, whereby the cost o( the intan'ible assets are amorti;ed

o*er its estimated se(l li*es o*er which economic bene(its are e/.ected to (low to the Bank4

he se(l li*es are re*iewed and adsted, i( a..ro.riate, at each balance sheet date4

5.4.2 Le"ses (I8"%"!$

ssets leased ot nder ?)arah? are stated at cost less accmlated de.reciation and

accmlated im.airment losses, i( any4 ssets nder )arah are de.reciated o*er the .eriod o(

lease term4 Eowe*er, in the e*ent the asset is e/.ected to be a*ailable (or re+iarah, de.reciation

is char'ed o*er the economic li(e o( the asset sin' strai'ht line basis4


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I/p"i%/et

he carryin' amont o( assets are re*iewed at each balance sheet date (or im.airment whene*ere*ents or chan'es in circmstances indicate that the carryin' amonts o( the assets may not bereco*erable4 )( sch indication e/ists and where the carryin' *ale e/ceeds the estimatedreco*erable amont, assets are written down to their reco*erable amonts4 Reco*erable amontis the 'reater o( net sellin' .rice and *ale in se4 he resltin' im.airment loss is taken to the.ro(it and loss accont e/ce.t (or im.airment loss on re*aled assets, which is adsted a'ainstthe related re*alation sr.ls to the e/tent that the im.airment loss does not e/ceed the sr.lson re*alation o( that asset4

5.5 St" %eti%e/et &eeits

he Bank o.erates the (ollowin' sta(( retirement bene(its (or its em.loyees=

1) For clerical 5 non+clerical sta(( who did not o.t (or the new scheme, the Bank o.erates the(ollowin'=

1- an a..ro*ed contribtory .ro*ident (nd

2- an a..ro*ed 'ratity scheme and

3- a contribtory bene*olent scheme

2) For clerical 5 non+clerical sta(( who oined the Bank a(ter the introdction o( the new schemeand (or others who o.ted (or the new scheme introdced in 1#%", the Bank o.erates the

(ollowin'=

1- an a..ro*ed non+contribtory .ro*ident (nd introdced in lie o( the contribtory.ro*ident (nd

2- an a..ro*ed .ension (nd and

3- contribtory bene*olent scheme

3) For o((icers who oined the Bank a(ter the introdction o( the new scheme and (or others who

o.ted (or the new scheme introdced in 1#%%, the Bank o.erates the (ollowin'=

1- an a..ro*ed non+contribtory .ro*ident (nd introdced in lie o( the contribtory.ro*ident (nd and

2- an a..ro*ed .ension (nd4

3- contribtory bene*olent (nd4

Eowe*er, the mana'ement has re.laced the .ension bene(its (or em.loyees in the o((icer

cate'ory with a contribtory .ro*ident (nd (or ser*ices rendered a(ter December 31, 20034

4) For e/ecti*es and o((icers who oined the Bank on or a(ter Aanary 01, 2000, the Banko.erates an a..ro*ed contribtory .ro*ident (nd4

5) 7ost retirement medical bene(its to entitled em.loyees4

nnal contribtions towards the de(ined bene(it .lans and schemes are made on the basis o(

actarial ad*ice sin' the 7roected nit Credit Method4 he abo*e bene(its are .ayable to sta((

at the time o( se.aration (rom the Bank?s ser*ices sbect to the com.letion o( @ali(yin' .eriod o(

ser*ice4

7ast ser*ice cost is the chan'e in the .resent *ale o( the de(ined bene(it obli'ation resltin'

(rom a .lan amendment or crtailment4 he Bank reco'nise .ast ser*ice cost as an e/.ense at

the earlier o( the (ollowin' dates=


19/294

(1)when the .lan amendment or crtailment occrs

(2)and when the Bank reco'nises related restrctrin' costs or termination bene(itsE/p4o'ees *o/pes"te#"&se*es


20/294

Liability in res.ect o( em.loyees? com.ensated absences is acconted (or in the year in which these areearned on the basis o( actarial *alation carried ot sin' the 7roected nit Credit Method4

Drin' the crrent year, the Bank has chan'ed its accontin' .olicy in res.ect o( .ost retirementde(ined bene(its .lans as re@ired nder )nternational ccontin' Standard 8)S9 1#, ?


21/294

T")"tio Cu%%et

7ro*ision (or crrent ta/ation is based on ta/able income at the crrent rates o( ta/ation a(ter

takin' into consideration a*ailable ta/ credits and rebates4 he char'e (or crrent ta/ also

incldes adstments where considered necessary, relatin' to .rior years which arise (rom

assessments (ramed 5 (inali;ed drin' the year4

Dee%%e#

De(erred ta/ is reco'nised sin' the balance sheet liability method on all tem.orary di((erencesbetween the amonts attribted to assets and liabilities (or (inancial re.ortin' .r.oses and

amonts sed (or ta/ation .r.oses4 he Bank records de(erred ta/ assets 5 liabilities sin' theta/ rates, enacted or sbstanti*ely enacted by the balance sheet date e/.ected to be a..licableat the time o( its re*ersal4 De(erred ta/ asset is reco'nised only to the e/tent that it is .robablethat (tre ta/able .ro(its will be a*ailable a'ainst which the asset can be tilised4 De(erred ta/assets are redced to the e/tent that it is no lon'er .robable that the related ta/ bene(it will berealised4 he Bank also reco'nises de(erred ta/ asset 5 liability on de(icit 5 sr.ls on re*alationo( secrities and de(erred ta/ liability on sr.ls on re*alation o( (i/ed assets which is adsteda'ainst the related de(icit 5 sr.ls in accordance with the re@irements o( )nternationalccontin' Standard 8)S9 12, ?)ncome a/es?4

De(erred ta/ liability is not reco'ni;ed in res.ect o( ta/able tem.orary di((erences associated with

e/chan'e translation reser*es o( (orei'n o.erations, where the timin' o( the re*ersal o( the

tem.orary di((erence can be controlled and it is .robable that the tem.orary di((erences will not

re*erse in the (oreseeable (tre4

5.7 P%o+isios

7ro*isions are reco'ni;ed when the Bank has a le'al or constrcti*e obli'ation as a reslt o( .ast

e*ents and it is .robable that an ot(low o( resorces will be re@ired to settle the obli'ation and

a reliable estimate o( the amont can be made4 7ro*isions are re*iewed at each balance sheet

date and are adsted to re(lect the crrent best estimates4

5.8 Fo%ei7 *u%%e*ies

5.9.1 Fo%ei7 *u%%e*' t%"s"*tios

ransactions in (orei'n crrencies other than the reslts o( (orei'n o.erations discssed in note"4#42 are translated to R.ees at the (orei'n e/chan'e rates .re*ailin' on the transaction date4

Monetary assets and liabilities in (orei'n crrencies are e/.ressed in R.ee terms at the rates o(e/chan'e .re*ailin' at the balance sheet date4 Forei'n bills .rchased and (orward (orei'n

e/chan'e contracts other than those relatin' to (orei'n crrency de.osits are *aled at the ratesa..licable to their res.ecti*e matrities4

5.9.2 Fo%ei7 ope%"tios

he assets and liabilities o( (orei'n branches are translated to R.ees at e/chan'e rates

.re*ailin' at the balance sheet date4 he reslts o( (orei'n o.erations are translated to R.ees at

the a*era'e rate o( e/chan'e (or the year4


22/294

T%"s4"tio 7"is "# 4osses

ranslation 'ains and losses are inclded in the .ro(it and loss accont, e/ce.t those arisin' on

the translation o( the Bank?s net in*estment in (orei'n branches, which are taken to the ca.ital

reser*e 8e/chan'e translation reser*e9 ntil the dis.osal o( the net in*estment, at which time

these are reco'nised in the .ro(it and loss accont4

5.9.3 Co//it/ets

Commitments (or otstandin' (orward (orei'n e/chan'e contracts are disclosed in these (inancialstatements at committed amonts4 Contin'ent liabilities 5 commitments (or letters o( credit and

letters o( 'arantee denominated in (orei'n crrencies are e/.ressed in R.ee terms at the rates

o( e/chan'e .re*ailin' at the date o( the statement o( (inancial .osition4

5.10 A**ept"*esCommitments (or otstandin' (orward (orei'n e/chan'e contracts are disclosed in these (inancialstatements at committed amonts4 Contin'ent liabilities 5 commitments (or letters o( credit andletters o( 'arantee denominated in (orei'n crrencies are e/.ressed in R.ee terms at the rateso( e/chan'e .re*ailin' at the date o( the statement o( (inancial .osition4

5.11 Re+eue %e*o7itio

1- Mark+. 5 interest on ad*ances and retrns on in*estments are reco'ni;ed on a time.ro.ortion basis sin' the e((ecti*e interest method e/ce.t that mark+. 5 interest on non+.er(ormin' ad*ances and in*estments is reco'ni;ed on a recei.t basis, in accordance withthe re@irements o( the 7rdential Re'lations issed by the State Bank o( 7akistan 8SB79 oras .ermitted by the re'lations o( the o*erseas re'latory athorities o( contries where thebranches o.erate4 >here debt secrities are .rchased at .remim or discont, sch.remim 5 discont is amorti;ed thro'h the .ro(it and loss accont o*er the remainin' .eriodo( matrity4

2- Financin' method is sed in accontin' (or income (rom lease (inancin'4 nder this method,the nearned lease income 8e/cess o( the sm o( total lease rentals and estimated residal*ale o*er the cost o( leased assets9 is de(erred and taken to income o*er the term o( thelease .eriod so as to .rodce a constant .eriodic rate o( retrn on the otstandin' netin*estment in lease4 :ains 5 losses on termination o( lease contracts are reco'ni;ed as

income when these are reali;ed4

3- )arah income is reco'ni;ed on an accral basis as and when the rental becomes de4

4- Commission income is reco'ni;ed on a time .ro.ortion basis4

5- Di*idend income is reco'ni;ed when the Bank?s ri'ht to recei*e di*idend is established4

6- :ain 5 loss on sale o( in*estments is credited 5 char'ed to .ro(it and loss accont crrently4

5.12 Ope%"ti7 4e"ses

-.eratin' lease rentals are recorded in .ro(it and loss accont on a time .ro.ortion basis o*erthe term o( the lease arran'ements4

5.13 Assets "*5ui%e# i s"tis"*tio o *4"i/s

he Bank occasionally ac@ires assets in settlement o( certain ad*ances4 hese are stated at

lower o( the carryin' *ale or crrent (air *ale o( sch assets4


23/294

C"s! "# *"s! e5ui+"4ets

Cash and cash e@i*alents inclde cash and balances with treasry banks and balances with

other banks 8net o( o*erdrawn 6ostro balances9 in crrent and de.osit acconts4

5.14 Fi"*i"4 ist%u/ets

5.15.1 Fi"*i"4 "ssets "# i"*i"4 4i"&i4ities

Financial instrments carried on the statement o( (inancial .osition inclde cash and balanceswith treasry banks, balances with other banks, lendin's to (inancial instittions, in*estments

8e/cldin' in*estment in associates and sbsidiaries9, ad*ances, other assets, bills .ayable,borrowin's, de.osits and other liabilities4 he .articlar reco'nition methods ado.ted (orsi'ni(icant (inancial assets and (inancial liabilities are disclosed in the indi*idal .olicy statementsassociated with these assets and liabilities4

5.15.2 De%i+"ti+e i"*i"4 ist%u/ets

Deri*ati*e (inancial instrments are initially reco'ni;ed at (air *ale on the date on which a

deri*ati*e contract is entered into and are sbse@ently remeasred at their (air *ale sin'

*alation techni@es4 ll the deri*ati*e (inancial instrments are carried as an asset when the (air*ale is .ositi*e and as a liability when the (air *ale is ne'ati*e4 ny chan'e in the (air *ale o(

deri*ati*e (inancial instrments is taken to the .ro(it and loss accont crrently4

5.15.3 O setti7

Financial assets and (inancial liabilities are set o(( and the net amont is re.orted in the (inancial

statements when there is a le'ally en(orceable ri'ht to set o(( and the Bank intends either to

settle on a net basis, or to reali;e the assets and settle the liabilities, simltaneosly4

5.16 Bo%%oi7s #eposits

Borrowin's 5 de.osits are recorded at the .roceeds recei*ed4 he cost o( borrowin's 5 de.osits isreco'ni;ed as an e/.ense in the .eriod in which this is incrred4

5.17 Se7/et %epo%ti7

se'ment is a distin'ishable com.onent o( the Bank that is en'a'ed in .ro*idin' .rodcts or

ser*ices 8bsiness se'ment9 or in .ro*idin' .rodcts or ser*ices within a .articlar economic

en*ironment 8'eo'ra.hical se'ment9, which is sbect to risks and rewards that are di((erent (rom

those o( other se'ments4 he Bank?s .rimary (ormat o( re.ortin' is based on bsiness se'ments4

5.17.1 Busiess

se7/ets

Co%po%"te Fi"*e

Cor.orate Finance incldes nderwritin', secriti;ation, in*estment bankin', syndications, )7-

related acti*ities 8e/cldin' in*estments9 and secondary .ri*ate .lacements4


24/294

T%"#i7 "# S"4es

)t incldes (i/ed income, e@ity, (orei'n e/chan'e commodities, lendin's to and borrowin's (rom

(inancial instittions and brokera'e debt4

Ret"i4 "# Cosu/e% B"i7

)t incldes retail lendin' and de.osits, bankin' ser*ices, .ri*ate lendin' and de.osits, bankin'

ser*ices and retail o((ered to its retail cstomers and small and medim enter.rises4

Co//e%*i"4 B"i7

)t incldes .roect (inance, e/.ort (inance, trade (inance, leasin', lendin', 'arantees and bills o(

e/chan'e relatin' to its cor.orate cstomers4

5.17.2 9eo7%"p!i*"4 se7/ets

he Bank o.erates in three 'eo'ra.hic re'ions bein'=

1- 7akistan

2- Soth sia

3- Middle ith 6ational Bank o( 7akistan in local crrencycrrent accont 1",!!3,&"! 1",23!,$0$

"#,#$!,1"0 "%,$20,12#


25/294

his incldes national .ri;e bonds amontin' to Rs4 11&4%3% million 82012= Rs4 11!40%3 million94

6.1 De.osits with SB7 are maintained to com.ly with their re@irements issed (rom time to time4De.osits with other central banks are maintained to meet their minimm cash reser*es and

ca.ital re@irements .ertainin' to the (orei'n branches o( the Bank4

6.2 his re.resents S Dollar settlement accont maintained with SB74

Note 2013 2012

(Rupees i t!ous"#$

? BALANCES 6IT OTER BANKS

-tside 7akistan

+ crrent accont 1,0"2,"32 #%&,#30

+ de.osit accont %41 $&$,$1$ 213,0$$

1,"3!,#$! 1,1#1,#%$

7.1 Balances with other banks otside 7akistan in de.osit acconts carry interest rate 243"G .erannm 82012= 041!G to $42"G .er annm94

Note 2013 2012

(Rupees i t!ous"#$

; LENDIN9S TO FINANCIAL INSTITTIONS

Call money lendin's &42 H &43 !!$,2!1 +

Re.rchase a'reement lendin's &42 H &43 "!0,3%% 1,""1,$%2

1,22$,!3& 1,""1,$%2

;1 P"%ti*u4"%s o 4e#i7s

)n local crrency ##!,%!! 1,$&2,#%3

)n (orei'n crrencies 22%,&%2 !&,$##

1,22$,!3& 1,""1,$%2

;2 hese carry mark . rates ran'in' (rom !4"0G to 10G .er annm 82012 = %4"0G to #41"G94;3 Se*u%ities !e4# "s *o44"te%"4 "7"ist 4e#i7s to i"*i"4

istitutios

2013201

2


26/294

e4# &'Fu%t!

e% Tot"4 e4# &'Fu%t!

e% Tot"

&"7i+e

"s &"7i+e

"s*o44"te

%"4

(Rupees i t!ous"#$

*o44"te%"4

-------------------------------------

Market reasry Bills "!0,3%% + "!0,3%% 1,""1,$%2 + 1,""1

"!0,3%% + "!0,3%% 1,""1,$%2 + 1,""1

9. INESTMENTS - NET

>1 I+est/ets &' t'pes


27/294

2013201

2

Note e4# &'9i+e

"s Tot"4 e4# &' 9i+e "s Tot"4Ae)u

%e &"*o44"te

%"4 &" *o44"te%"4---------------------------------

-------(Rupees it!ous"#$----------------------------------------


28/294


29/294

Note

>2 I+est/ets &' se7/ets

Ae)u%e

Fe#e%"4 9o+e%/et Se*u%ities

+ Market reasry Bills #4$

+ 7akistan )n*estment Bonds #4$

+


30/294

>< :u"4it' o "+"i4"&4e o% s"4e se*u%ities

Note

2013

M"%et+"4ue

C%e#it%"ti7

M"%et

----------------------------(Rupeesi

t!ous"#$---------------------------

M"%et T%e"su%' Bi44s#4$41 321,1"0,$"! nrated 2#0,"0",$%%

P"ist" I+est/et Bo#s

#4$4

1 10%,%20,"!" nrated &!,1!!,#3"

Liste# Te%/ Fi"*e Ce%tii*"tes

skari Bank Limited +2"3,321 2%",%"$

Bank l(alah Limited "2%,$&0 + "22,%12

llied Bank Limited 20",0&1 23%,013

nited Bank Limited + %%%,3&0

6)B Bank limited + 1!%,11&

7ak rab Fertili;ers Limited + 30,011

#&",&&2 2,00#,#&&

S!"%es i Liste# Co/p"ies

bbott Laboratories 7akistan Limited 6ota*ailable2",&1$ 1#,!$"

isha Steel Mills Limited 1,3$" + H 2

llied Bank Limited %#$,%3&I H1I $#!,%"$

ri( Eabib Limited 3,0!%6ot

a*ailable

ri( Eabib Cor.oration Limited $1,1&& H 1I $$,!"0

ttock Cement 7akistan Limited 2,%"$6ot

a*ailable

ttock 7etrolem Limited $#$,#0!6ot

a*ailable $20,%"!

ttock Re(inery Limited + 3%,2%0

Bank l(alah Limited &,112 H 1I

Bank l+Eabib Limited "33,#%%I H1I 201,#"#

rchroma 7akistan Limited 8Formerly Clariant 7akistanLimited9 3$,$10

6ota*ailable 1$,"2$

Fai Cement Com.any Limited 22,3306ot

a*ailable

Fai Fertili;er Bin Jasim Com.any Limited 1!&,#0#6ot

a*ailable 112,3%$

Fai Fertili;er Com.any Limited 1,123,1&36ot

a*ailable 1,1%",1$&

First l + 6oor Modaraba 2%,%!!6ot

a*ailable 2$,##0

Eabib Bank Limited 111,!!# H 1I 31%,&!#

Eabib Metro.olitan Bank Limited 2,&&3 I H 1I

Eb 7ower Com.any Limited 230,1#0 I H 1I 1&,0#!

):) )nsrance Limited 11,"0%

)nds Motors Com.any Limited #,000

6ot

a*ailableohinoor


31/294

2013 2012

Note M"%et +"4ue

C%e#it%"ti7

M"%et +"4ue C%e#it%"ti7

----------------------------(Rupees i t!ous"#$-------------------------------

Balance bro'ht (orward

7akistan -il(ields Limited

7akistan 7etrolem Limited

7akistan State -il Com.any Limited

7akistan elecommnication Com.any Limited

7akistan obacco Com.any Limited

Ra(han Mai;e 7rodcts Limited

R.ali 7olyester Limited

Samba Bank Limited

Searle 7akistan Limited

KK Si 6orthern :as 7i.elines Limited

K rst Secrities H Brokera'e Limited

nile*er 7akistan Limited

nile*er 7akistan Foods Limited

nited Bank Limited

l(i@ar )ndstries Limited

Ope E#e# Mutu"4 Fu#

Metro+Bank 7akistan So*erei'n Fnd7er.etal8MSF9MCB Dynamic Stock Fnd

S!"%es i -4iste# Co/p"ies

K 6ational )n*estment rst Limited

K SM< Bank Limited

First Ca.ital )n*estment 87ri*ate9 Limited

7ak sian Fnd

K rabian Sea Contry Clb

K Central De.ository Com.any o( 7akistan LimitedK 6ational )nstittional Facilitation echnolo'ies 87ri*ate9Limited

Society (or >orldwide )nter Fnd rans(er 8S>)F9

Fa;al Cloth Mills Limited + .re(erence share

)slamabad Stock


32/294

3,$12,&3! nrated

3,!%2 M2+

3#3,23$,$&1


33/294

hese are :o*ernment o( 7akistan 'aranteed secrities4

9.4.1 )n*estments in nlisted com.anies are stated at carryin' *ale4 he abo*e e/cldes nlisted

shares o( com.anies which are (lly .ro*ided (or in these (inancial statements4

1* hese are the strate'ic in*estments o( the Bank4

1* his incldes 3%42#2 million shares *alin' Rs4 %#$430# million 82012= 334#01 million shares *ali

%&&420% million9 which are held as strate'ic in*estment by the Bank4

9.5 *ailable (or sale Market reasry Bills and 7akistan )n*estment Bonds are eli'ible (orrediscontin' with the State Bank o( 7akistan4 he market *ale o( Market reasry Bills classi(ied

as ?held to matrity? as at December 31, 2013 amonted to Rs4 1,%204&%" million 82012= Rs4 &3#41%#

million94

9.6 )n*estment o( the Bank in damee )nsrance Com.any Limited is carried at cost amontin' to Rs4#$34!00 million 82012= Rs4 #$34!00 million9 as at December 31, 20134 he market *ale o( the

in*estment in damee )nsrance Com.any Limited as at December 31, 2013 amonted to Rs4

3,&0#4#0! million 82012= Rs4 2,$""433! million94

9.7 )n*estments inclde 7akistan )n*estment Bonds amontin' to Rs4 2324!0 million 82012= Rs4 2324!0million9 earmarked by the SB7 and 6ational Bank o( 7akistan a'ainst 5 DD discontin' (acilities

and demand note (acilities sanctioned to the Bank4 )n addition, 7akistan )n*estment Bonds

amontin' to Rs4 " million 82012= Rs4 " million9 ha*e been .led'ed with the Controller o( Military

cconts on accont o( Re'imental Fnd accont4

9.8 )n(ormation relatin' to in*estments in ordinary shares and .re(erence shares o( listed com.anies

and nlisted com.anies re@ired to be disclosed as .art o( the (inancial statements nder BSD

Circlar 6o40$ o( 200! dated Febrary 1%, 200!, is 'i*en in nne/re )4

9.9 Certain a..ro*ed 5 :o*ernment secrities are ke.t with the SB7 to meet stattory li@idity

re@irements calclated on the basis o( domestic demand and time liabilities4

Note 2013 2012

(Rupees i t!ous"#$

1

0 ADANCES - NET

Loans, cash credits, rnnin' (inances, etc4

)n 7akistan 230,1#0,1$$ 22%,&"#,3$$

-tside 7akistan 13,#$3,%1& 12,!"#,"10

2$$,133,&!2 2$0,"1&,&"$

)slamic Financin' and related assets 1042 11,303,#!! #,#&3,$1%

6et in*estment in (inance lease 1043

)n 7akistan 1,02%,#11 1,00$,%!1


34/294


35/294

minimm lease

.ayments $1!,#%& %1#,$!% + 1,13!,$$" 331,$#% &3",%3# + 1,1!%,23!


36/294

d*ances inclde Rs423,2!%4%33 million 82012= Rs4 2","!14%%$ million9 which ha*e been .laced nder the non+.er(ormin' stats as detailed below=

2013

C"te7o%' o

Note C4"ssiie# A#+"*es Spe*ii* P%o+isio Re5ui%e# Spe*ii* P%o+isio e4#

C4"ssii*"tioDo/esti*

O+e%se"s Tot"4

Do/esti* O+e%se"s Tot"4 Do/esti*

O+e%se"s Tot"4

---------------------------------------------------------------

(Rupees i t!ous"#$---------------------------------------------------------------

-ther ssets


37/294

7ro*ision made drin' the year$,&&1,2"

$ #,322 + &,3$"$,&,#2

1

Re*ersals8$,3!",2$

!9 8"2,%%298$,$1&,01

&9

"1!,00& #,322 8"2,%%29 &,3$" $&0,#03

monts written o(( 104!41 810!,$009 810!,$009

Closin' balance22,3&0,0

&% 2"%,$"% 1$","!& 2",#1122,&0#,0

23

2013 2012

Spe*ii* 9ee%"4 Tot"4 Spe*ii* 9ee%"4 Tot"4

(tot"4$

(Rupees i t!ous"#$

(tot"4$

10@1 P"%ti*u4"%s o p%o+isios "7"ist "#+"*es

--------------------------

)n local crrency 1!,#"2,313 $!#,21$1%,$21,"2

% 20,1%2,11" $03,02"20,"%",1

$0

)n (orei'n crrencies 2,$#%,&3" 2#,#31 2,"2%,%!! 2,20%,#%2 2",#112,233,&&

3

1#,$"0,1$& $##,1$"1#,#$#,2#

322,3&0,0&

% $2&,#3!22,&0#,0

23

Note 2013 2012

10@2 he (ollowin' amonts ha*e been char'ed to the .ro(it and lossaccont=

(Rupees it!ous"#$

S.eci(ic .ro*ision82,%,$

#09 "1!,00&

:eneral .ro*ision 104"43 10,$03 #,322

:eneral .ro*ision a'ainst consmer H Small


38/294

:eneral .ro*ision a'ainst ad*ances re.resents .ro*ision maintained at arond 041G o( 'ross ad*ances4

10.5.3 State Bank o( 7akistan *ide BSD Circlar 6o4 2 dated Aanary 2%, 200#, BSD Circlar 6o4 10 dated -ctober20, 200#, BSD Circlar 6o4 02 o( 2010 dated Ane 03, 2010 and BSD Circlar 6o41 o( 2011 dated -ctober

21, 2011 has allowed bene(it o( (orced sale *ale 8FS9 o( 7lant H Machinery nder char'e, .led'ed stock

and mort'a'ed residential, commercial H indstrial .ro.erties 8land and bildin' only9 held as collaterala'ainst 67Ls (or (i*e years (rom the date o( classi(ication4 Eowe*er, mana'ement has not taken the FS

bene(it in calclation o( s.eci(ic .ro*ision4

10.5.4 :eneral .ro*ision a'ainst consmer loans re.resents .ro*ision maintained at an amont e@al to 14"G o( the(lly secred .er(ormin' .ort(olio and "G o( the nsecred .er(ormin' .ort(olio as re@ired by the 7rdential

Re'lations issed by the SB74 :eneral .ro*ision a'ainst Small


39/294

1

Ci*il works 1,2!0,$2% 1,032,"$#

d*ances to s..liers and contractors 1$#,!$2 2$0,&"2

-thers $%&,$3" 1&%,002

1,&&&,"0$ 1,$!0,$03


40/294

P%ope%t' "# e5uip/et

2013

Des*%iptio

Cost Re+"4ue#"/out A**u/u4"te# #ep%e*i"tio

A##itiosC!"%7e o% t!e

'e"%

At

Net &oo+"4ue

Au%"te o

At G"u"%'01, (#ispos"4s$

Re+"4u"tio

Re+e%s"4#ue

T%"se%i

AtG"u"%'

(#ep%e*i"tio oRe+e%s"4 #ue

toT%"se%

i "t De*e/&e%

31,

#ep%e*o

At De*e/&e% 31,2013

#ispos"4s$e)*!"7e

De*e/&e% esti/"

2013 E)*!"7e "#su%p4u

sto

%e+"4u"tio (out$01,

2013

"# ot!e%

%e+"4u"tio (out$

31, 2013

2013

useu4 ot!e%

"#8ust/ets

"#8ust/ets

-----------------------------------------------------------------------------------------------

(Rupees it!ous"#$-----------------------------------------------------------------------------------------------

Land + Freehold 12,0"%,3## &0#,2#! 1,"0%,21% + 1$,3%3,#12 + + + + + 1$,3%3,#12 +

Land + Leasehold 120,100 +","3

2 + 12",!32 + + + + + 12",!32 +

Bildin's on (reehold land !,101,%$3 1,0!2,!#% "#2,2%3 8"2!,#$&9 "%,%31 %,2,$&! 2#","#% 213,0$% 8"2!,#$&9 1%,"$$ + %,2,$&!.to %year

+

1,##0 %!0

Bildin's on leasehold land "3&,& 1,&3! 1!,$!" 81$,0139 8$#3,###9 $#,##! 1&1,"!3 2,00% 81$,0139 81%0,31$9 + $#,##!.to "year

+ +

&0# %"%

Leasehold )m.ro*ementsK + 22",&$% + + $3!,2!& !!3,!1# 1"$,"&3 + 1"2,%%0 310,11" 3"3,"0$ 3 yea

+ +

1,"0$ 2,%!2

Frnitre and (i/tre #&2,$2% #%,21! + + 1,0%2,10$ "3&,2!! #%,3"0 + + !2&,3$1 $$3,%!3 10G

8#,"339 8!,%#09

1,##$ 8$&"9


41/294

812",2209 8$!,"

2&,&!!,00# 3,$,0&0 2,121,$&% 8"$0,#!19 + 3$,000,30%%,0#!,%&

3 1,"$1,31$ 8"$0,#!19 +%,&&2,&

2!,11%,$1&

83"$,2$"9 8223,&$39

13,#3% #,"#!

K Leasehold )m.ro*ements ha*e been classi(ied se.arately (rom Bildin's on leasehold land4


42/294

P%ope%t' "# e5uip/et

2012

Des*%iptio

Cost Re+"4ue#"/out A**u/u4"te# #ep%e*i"tio

Net &ooAu"4 %"

o

A##itios

C!"%7e o% t!e 'e"%

(#ep%e*i"tio o At +"4ue "t#ep%e*i"t

At G"u"%' 01, (#ispos"4s$ At

G"u"%'At De*e/&e% 31,

2012 #ispos"4s$ e)*!"7eDe*e/&

e%De*e/&e%

31, esti/"te2012 E)*!"7e "# 01, 2012

"# ot!e% 31, 2012 2012 useu4 4iot!e%"#8ust/ets

"#8ust/ets

-----------------------------------------------------------------------------------------

(Rupees it!ous"#$-----------------------------------------------------------------------------------------

Land + Freehold 10,%&&,123 1,2!#,2%! 12,0"%,3## + + + 12,0"%,3##

Land + Leasehold 120,100 + 120,100 + + + 120,100

Bildin's on (reehold land ","$2,!3% ""#,10! !,101,%$3 133,01! 1!2,"&1 2#","#% ",&0!,1$! .to %0 ye

Bildin's on leasehold land 30%,012 233,2#1 "3&,& 120,#0& %%,!20 1&1,"!3 3"%,33" 3 to "0 ye

+

81,$0"9 81!,#!"9

Frnitre and (i/tre #01,%%! &2,&"% #&2,$2% $32,210 10%,3%3 "3&,2!! $$$,1!1 10

82,23#9 81,3#09

33 %3


43/294

ssets held nder )arah +


44/294

he land and bildin's o( the Bank are re*aled in December 2013 by inde.endent *alers 8rch+e+Decon H Sardar


45/294

so(tware 1,"00,"$# 3$&,311 1,&!1,$&! 1,0%&,%"3 2"#,#321,3"2,!!

1 "0&,&2" 33433

12,!2! 13,#%!

1,"00,"$# 3$&,311 1,&!1,$&! 1,0%&,%"3 2"#,#321,3"2,!!

1 "0&,&2"

12,!2! 13,#%!

Note 2013 2012

Restated

12 OTER ASSETS - NET(Rupees i t!ous"#$

)ncome 5 mark+. accred on ad*ances andin*estments + local crrency &,$03,#$" &,01#,10%

)ncome 5 mark+. accred on ad*ances and

in*estments + (orei'n crrencies 1#2,#2& &$,3&1

ccred income, ad*ances, de.osits, and other .re.ayments 1,0%",##2 #"#,!30

d*ance ta/ation 8.ayments less .ro*isions9 !,0&1,"21 10,$,"22

Com.ensation (or delayed income ta/ re(nds $$,&02 $$,&02

6on+bankin' assets ac@ired in satis(action o( claims 1241 1,#3#,1&$ 1,3#&,%03

nrealised 'ain on deri*ati*e (inancial instrments 1242 1,!$#,1!3 13$,33#Stationery and stam.s on hand !!,#10 $3,0!%

7re.aid e/chan'e risk (ee 2"% 1!#

Recei*able (rom the .ension (nd 3!43 ",&"$,20% 1&,$2&,$&3

-thers 2,%2#,121 2,!$",20!

2&,03&,030 $2,!"2,$0#

Less= 7ro*ision held a'ainst other assets 1243 1,0&1,%1" 1,131,#%%

2!,#"!,31" $1,"20,$32

12.1 he market *ale o( non+bankin' assets with carryin' *ale o( Rs4 1,&1$4#&1 million 82012= Rs4 1,2%!40#3 millio

net o( .ro*ision as .er the *alation re.orts dated December 31, 2013 amonted to Rs4 1,&314"#1 million 8201

Based on *alation as o( December 31, 2012 Rs4 1,3%$43## million94

12.2 %e"4ise# 7"i o #e%i+"ti+e i"*i"4 ist%u/ets

Cot%"*t Notio"4 "/out %e"4ise# 7"i

2013 2012 2013 2012---------------------------

(Rupees it!ous"#$---------------------------

nrealised 'ain on=

F -.tions 21!,3$$ + 1,0!2 +

Forward e/chan'e contracts #0,%!#,$$#22,1!#,$&! 1,!$&,101 13$,33#

#0,#&",%#322,1!#,$&! 1,!$#,1!3 13$,33#

2013 2012

(Rupees i t!ous"#$

12.3 P%o+isio !e4# "7"ist ot!e% "ssets

-.enin' balance Char'e (or the year

Re*ersal drin' the year

>rite o((drin' theyear


46/294

reclassi(ication Closin' balance


47/294

1,131,#%% 1,2,!&%

31,3%! "#,&"&

8&3,!!19 82$%,1!39

8"2,2&"9 81&%,30"9

8$0,0#19 812,32$9

$2,11$ $1,#1#

1,0&1,%1" 1,131,#%%

13. CONTIN9ENT ASSETS

here were no contin'ent assets o( theBank as at December 31, 2013 andDecember 31, 20124


48/294

Note 2013 2012

(Rupees i t!ous"#$

1


49/294

2013 2012


50/294

1= DEPOSITS AND OTER ACCONTS

(Rupees i t!ous"#$

Custo/e%s

Fi/ed de.osits !0,"2$,01! &0,!$#,&$!

Sa*in' de.osits3$#,223,%2

& 2!&,#2%,0"2

Crrent acconts

20!,%20,%"

3 1&3,1%!,&$!Mar'in acconts 3,#3%,113 3,"20,$0$

!20,$0",!10 "3!,2%$,1$&

Fi"*i"4 istitutios

Remnerati*e de.osits &,0"&,0#$ !,0#0,&%&

6on+remnerati*e de.osits 3,&!!,"&2 2,!#",%02

11,#2$,!%! &,%&!,"&0!32,330,2&

! "$",0!0,%2&

1=1 P"%ti*u4"%s o #eposits

)n local crrency"#!,310,!3

# "1",!0%,#2%

)n (orei'n crrencies 3!,01#,!$% 2#,$"2,&01!32,330,2&

! "$",0!0,%2&

16.2 De.osits inclde de.osits (rom related .arties amontin' to Rs4 1!,"$%4""& million 82012= Rs4 30,&114"%

million94

17. DEFERRED TA LIABILIT. (ASSET$ - NET

he details o( the ta/ e((ect o( ta/able and dedctible tem.orary di((erences are as (ollows=

6ote 2013 2012

Restated

T")"&4e te/po%"%' #ie%e*es o

(Rupees i t!ous"#$

Sr.ls on re*alation o( o.eratin' (i/ed assets 2141 #"%,$#3 %!3,%0!ccelerated ta/ de.reciation 1,23!,31! 1,10#,2%0

Recei*able (rom .ension (nd 2,0$&,#%$ !,$$#,#!#Sr.ls 5 de(icit on re*alation o( secrities 2142 311,1"3 1,"01,0$2

$,""3,#3! #,&23,#&%

De#u*ti&4e te/po%"%' #ie%e*es o

7ro*ision (or bad debts 81#,%!!9 812,!329

7ro*ision (or .ost retirement bene(its 8332,%#%9 82&1,!2&9

83"2,"!39 82#$,2!09

$,201,3%3 #,"2#,%2%

Note 2013 2012

Restated

(Rupees i t!ous"#$


51/294

1; OTER LIABILITIES

Mark+. 5 retrn 5 interest .ayable in local crrency 1,#&2,$$1 %,!##,$3$

Mark+. 5 retrn 5 interest .ayable in (orei'n crrencies #&,"!2 !",112

ccred e/.enses %,1"1,%3& ",%!","&0

nclaimed di*idend 1,231,21! "20,"!%

Sta(( wel(are (nd 1&,&$! 2%,#$2

nrealised loss on deri*ati*e (inancial instrments 1&41 1,00",30" 10%,1#$

7ro*ision (or em.loyees? com.ensated absences 3!43 #3$,00# "#$,100

7ro*ision (or .ost retirement medical bene(its 3!43 1,3$0,$%! 1,"!",!3$

7ro*ision (or em.loyees? contribtory bene*olent scheme 3!43 213,$3& 2"%,0

Secrity de.osits 313,323 2%#,&32

Branch adstment accont 1#3,"#% 1#,023

Retention money 2",00$ 31,!3$

)nsrance .ayable a'ainst consmer assets 21!,#"# 1!#,"1%

nclaimed balances ##3,2!$ #01,"%&

Dties and ta/es .ayable &3#,&20 30",%3&

-thers 3,"0!,3$% 2,&"!,1#2

20,0!$,3$" 21,1!!,1!!

1;

1 %e"4ise# 4oss o #e%i+"ti+e i"*i"4 ist%u/etsCot%"*t Notio"4"/out %e"4ise# 4oss

2013 2012 2013 2012

---------------------------(Rupees i t!ous"#$---------------------------

nrealised loss on=

F -.tions 21!,3$$ + 1,0!2 +

Forward e/chan'e contracts !1,$0!,&!" 2",0%$,1&3 1,00$,2$3 10%,1#$

!1,!23,20# 2",0%$,1&3 1,00",30" 10%,1#$

19.SARE CAPITAL

1>1 Aut!o%ise# C"pit"4

2013 2012 2013 2012

(Nu/&e% o s!"%es$ (Rupees i t!ous"#$

1,"00,000,000 1,000,000,000 -rdinary shares o( Rs 10 each1",000,000 10,000,000

19.2 Issue#, su&s*%i&e# "# p"i#-up *"pit"4

2013 2012 2013 2012

Issue# o% Issue# "s Tot"4 Issue# o% Issue# "s Tot"4 (Rupees i t!ous"#$

*"s!&ouss!"%es *"s! &ous

----------------------------------------

(Nu/&e% os!"%es$----------------------------------------

1#%,2"3,%#" %22,!0!,32& #1#,&!0,123 1#%,2"3,%#" !3&,#&2,!&1 &3!,23!,$%!-.enin'balance #,1#&,!01 &,3!2,3!"Sharesissed

+ #1,#&!,012 #1,#&!,012 + &3,!23,!$% &3,!23,!$%drin' theyear #1#,&!0 &3!,23!

1#%,2"3,%#" &1$,"#2,3$01,011,&$!,13

"1#%,2"3,%#

"%22,!0!,32

#,&!0,12

3Closin'balance 10,11&,$!1 #,1#&,!01

2013 2012

(Nu/&e% o s!"%es$

19.3 6mber o( shares held by the associated ndertakin's as at December 31, are as (ollows=

damee )nsrance Com.any Limited 2#,#1$,03$ 2&,!$1,$&!

6ishat Mills Limited %3,2%2,!2# !!,!11,$&1D4:4 han Cement Com.any Limited #2,#%#,303 &$,"2!,!$0


52/294

Din Leather 87ri*ate9 Limited !,30",%"& ",%32,"0&

Siddi@sons Limited 12,#%&,!03 11,%#&,%31

Mayban )nternational rst 8Laban9 Berhad 202,3!#,22" 1&3,#%2,#23

$1%,&1#,""2 3&1,2&3,%!#

2013 2012

20 RESERES

Note (Rupees i t!ous"#$

Share .remim #,%02,"2& #,%02,"2&


53/294

Note 2013 2012(Rupees i t!ous"#$

21. SRPLS ON REALATION OF ASSETS

1- NET OF TA

Sr.ls 5 8de(icit9 arisin' on re*alation 8net o( ta/9 o(=

+ (i/ed assets 2141 11,2&%,#&% #,$1",3$!

+ a*ailable+(or+sale secrities 2142 1,!%1,2%! $,1%&,""112,#"#,2!

3 13,"#3,%

211 Su%p4us o %e+"4u"tio o i)e# "ssets-et o t")

Sr.ls on re*alation o( (i/ed assets as at Aanary 0110,1%#,0"

2 10,23$,112

Sr.ls drin' the year 2,121,$&% +

rans(erred to na..ro.riated .ro(it in res.ect o(

incremental de.reciation char'ed drin' the

year + net o( de(erred ta/ 83",%&&9 83",%

Related de(erred ta/ liability 81#,2%19 81#,2%19

8"",0"#9 8"",0!09Sr.ls on re*alation o( (i/ed assets as at December31

12,2$",$&0 10,1%#,0"2

Less= Related de(erred ta/ liability on=

Re*alation as at Aanary 01 %!3,%0! %&2,#%%

Sr.ls drin' the year 213,0"& +

)ncremental de.reciation char'ed drin' the yeartrans(erred to .ro(it and loss accont 81#,2%19 81#,2%19

#"%,$#3 %!3,%0!

11,2&%,#&% #,$1",3$!

212 Su%p4us (#ei*it$ o %e+"4u"tio o "+"i4"&4e-

o%-s"4e se*u%ities - et o t")

Federal :o*ernment Secrities

+ Market reasry Bills 82&!,3$"9 "10,%3#

+ 7akistan )n*estment Bonds 10",$1& 2,%3&,&"$Listed Secrities

+ Shares 5 Certi(icates 5 nits 2,11!,$20 2,0%1,1#&

+ -.en


54/294

22 CONTIN9ENCIES AND COMMITMENTS

2013 2012

(Rupees i t!ous"#$

221 Di%e*t *%e#it su&stitutes

Contin'ent liabilities in res.ect o( 'arantees 'i*en (a*orin'

:o*ernment !,$&&,0$1 ",12#,$32

Banks and (inancial instittions 2,3$%,"&" 3,"&","01

-thers 1!,0"$,&"1 13,#"!,#22

222 T%"s"*tio-%e4"te# *oti7et 4i"&i4ities

2$,,$%% 22,!%1,&""

:arantees in (a*or o(

Banks and (inancial instittions 20,#33 +

-thers 1,"00,01# !&!,!1"

S..liers? credit 5 .ayee 'arantee 2,$,$32 2,!00,&33

$,010,3&$ 3,2&%,$$&

223 T%"#e-%e4"te# *oti7et 4i"&i4ities &0,!3&,!#0 !#,$23,%$1

22< Ot!e% *oti7e*ies

Claims a'ainst the Bank not acknowled'ed as debts 3,03",&!3 !20,$1!

hese re.resent certain claims by third .arties a'ainst the Bank, which are bein' contested in the Corts o( law4 he

mana'ement is o( the *iew that these relate to the normal corse o( bsiness and the .ossibility o( an ot(low o(

economic resorces is remote4

22.5Co//it/ets to e)te# *%e#it

he Bank makes commitments to e/tend credit in the normal corse o( its bsiness bt these bein' re*ocable

commitments do not attract any si'ni(icant .enalty or e/.ense i( the (acility is nilaterally withdrawn4

Note 2013 2012

(Rupees i t!ous"#$

22=Co//it/ets i %espe*t o o%"%# o%ei7 e)*!"7e*ot%"*ts

7rchase %2,21!,%"1 2","$!,03"

Sale %#,#"#,"!3 21,!#%,!3$

22? Co//it/ets o% t!e "*5uisitio o i)e# "ssets 2$3,!1$ """,3#&

22; Ot!e% *o//it/ets

F o.tions 8notional amont92341 H

2342

7rchase 21!,3$$ +

Sale 21!,3$$ +

22.8T")"tio

For assessment year 1#&&+ thro'h ta/ year 2012, the ta/ de.artment dis.ted Bank?s treatment on certain isses,

where the Bank?s a..eals are .endin' at *arios a..ellate (orms, entailin' an additional ta/ liability o( Rs4$,1

million 82012= Rs4#,!3# million9 which has been .aid4 Sch isses inter alia .rinci.ally inclde disallowance o(

e/.enses (or non dedction o( withholdin' ta/ and non a*ailability o( nderlyin' records, .ro*ision (or non .er(ormin'

loans, attribtion o( e/.enses to heads o( income other than income (rom bsiness and disallowance o( credit (or

ta/es .aid in ad*ance 5 dedcted at sorce4

he Bank has (iled a..eals which are .endin' at *arios a..ellate (orms4 )n addition, certain decisions made in

(a*or o( the Bank are bein' contested by the de.artment at hi'her (orms4 6o .ro*ision has been made in the

(inancial statements re'ardin' the a(oresaid additional ta/ demand and already issed (a*orable decisions where the

de.artment is in a..eal, as the mana'ement is o( the *iew that the isses will be decided in the Bank?s (a*or as and

when these are taken . by the ..ellate thorities4


55/294

For ta/ years 2003 thro'h 200! and ta/ year 2011, a''re'ate liability o( Rs "&$ million has been add'ed nder

section 1!1 o( the )ncome a/ -rdinance, 2001 on the 'ronds that Bank (ailed to dedct a..licable withholdin' ta/

while makin' .ayments on certain acconts4 Sch liability has not been .ro*ided (or in these (inancial statements as

Bank?s mana'ement is o( the *iew that while de.artmental action (or ta/ years 2003 thro'h 200! is barred by

a..licable limitation o( time while the liability (or ta/ year 2011 has been add'ed on an arbitrary basis4


56/294

DERIATIE INSTRMENTS

Most cor.orate 8conter .arties9 ha*e either interest rate e/.osres arisin' (rom debt (inancin' o

e/cess li@idity or crrency e/.osres arisin' ot o( commercial and bsiness transactions4 )n the

e*ent o( a shi(t in interest or (orei'n e/chan'e 8F9 rates, these cor.orate may incr hi'he

borrowin' costs or hi'her cash ot(lows that will ad*ersely a((ect .ro(itability4

he Bank .ro*ides soltions to this conndrm thro'h deri*ati*es4 hro'h this, conter.arties wbe hed'in' e/.osre to ad*erse .rice mo*ements in a secrity, ty.ically when the conter.arty ha

a concentrated .osition in the secrity and is actely e/.osed to mo*ements in the nderlyin' ris

(actors4 he Bank is in a better .osition to hed'e that risk, and is ths able to .ro*ide cost e((icien

hed'in' soltions to the conter.arties enablin' them to concentrate on their bsiness risk4

-ther -becti*es inclde=

1- contribtion to the de*elo.ment o( 7akistani (inancial markets4

2- .ro*ision o( (inancial soltions to the conter.arties4

Risk mana'ement is .er(ormed at=

1) Strate'ic le*el= By senior mana'ement ssets and Liabilities Mana'ement Committee 8LC-9

Risk Mana'ement Committee 8RMC9 and the Board o( Directors to institte a risk mana'emen

(ramework and to ensre .ro*ision o( all resorces and s..ort re@ired (or e((ecti*e ris

mana'ement on Bank+wide basis4

2) Macro Le*el= By Financial )nstittion 7blic Sector 8F)7S9 H Market Risk Mana'ement 8MRM

Di*ision, res.onsible (or .olicy (ormlation, .rocedre de*elo.ment H im.lementationmonitorin' and re.ortin'4

3) Micro Le*el= reasry Deri*ati*es H Strctred 7rodct Desk and reasry -.erations, wher

risks are actally created4

F)7S H MRM Di*ision is res.onsible (or coordinatin' (or risk mana'ement o( deri*ati*es4

he risk mana'ement system 'enerates marked to market risk nmbers 8i4e4 aR, 7B7, dration

etc49 o( )nterest rate deri*ati*e .ort(olio4 hese nmbers are re.orted to senior mana'ement on

daily basis4

s .er the State Bank o( 7akistan?s 8SB79 re'lations, crrency o.tions are hed'ed back to bac

and ths the risk associated with sch transactions are minimal4

Ris Li/its

Be(ore initiatin' any new deri*ati*e transaction, reasry Di*ision re@ests the F)7S H MRM

Di*ision (or risk limits4 Limit re@ests are a..ro*ed by the a..ro.riate le*el o( athority4 7resentl

the Bank has de(ined notional limits both (or the .ort(olio and the conter.arty4


57/294

231 P%o#u*t ""4'sis 2013


58/294

Coute% p"%ties C%oss Cu%%e*' S"ps Ite%est R"te S"ps F Optios

No o Notio"4 No o Notio"4 No o Notio"Cot%"*ts P%i*ip"4

Cot%"*ts P%i*ip"4

Cot%"*ts P%i*ip

(Rupees (Rupees (Rupeei

t!ous"#$ i t!ous"#$i

t!ous"

6it! B"s o%

Eed'in' - - - 2 21=,3

Market Makin' - - - - -

6it! ot!e% etities o%

Eed'in' - - - - -

Market Makin' - - - 2 21=,3

Tot"4

Eed'in' - - - 2 21=,3

Market Makin' - - - 2 21=,3

Coute% p"%ties

2012

C%oss Cu%%e*' S"ps Ite%est R"te S"ps F Optios

No o Notio"4 No o Notio"4 No o Notio"Cot%"*ts P%i*ip"4

Cot%"*ts P%i*ip"4

Cot%"*ts P%i*ip

(Rupees (Rupees (Rupee

>ith Banks (or

it!ous"#$ i t!ous"#$

it!ous"

Eed'in' + + + + + +

Market Makin' + + + + + +

>ith other entities (or

Eed'in' + + + + + +


otal

Eed'in' + + + + + +


232 M"tu%it' ""4'sis

Re/"ii7 /"tu%it'

2013

No o Notio"4M"% toM"%et

Cot%"*ts P%i*ip"4 Ne7"ti+e Positi+e Net

F Optios

---------------------(Rupeest!ous"#$------------------

<


59/294

-*er 1 to 3 monhs + + ++

+ +


60/294

2013 2012

2


61/294

7ostal, S>)F and other char'es reco*ered 1&0,3$0 13#,!2%$$#,!0$ 3%3,&$#

Note 2013 2012

2; ADMINISTRATIE EPENSES

(Rupees i t!ous"#$

Salaries and allowances &,!$0,$10 &,$3$,2$2

Char'e 5 8re*ersal9 (or de(ined bene(it .lans and other bene(its=

+ ..ro*ed .ension (nd 3!4% 81,%01,$"1981,#33,02%

9

+ 7ost retirement medical bene(its 3!4% 1&%,%#2 1&%,13!

+ - + %,#01

Eyderabad Relie( H Rehabilitation rst + 3,&32


62/294

l+Shi(a rst, Fi'htin' 'ainst Blindness + 1,000

Sindh )nstitte o( rolo'y H rans.lantation 8S)9 + ",000

Shokat hanm Memorial rst + 100Cost o( establishin' o( centre o( learnin' in collaboration with C)SC-

+ 1,2$1system and CR< (ondation

7rime MinisterNs


63/294

a/ rate 3"G 3"G

a/ on income 11,300,&%2 11,0%$,!!%

a/ e((ect on se.arate block o( income 8ta/able at redced rate9 8$"!,$3#9 822!,1&&9a/ e((ect o( .ermanent di((erences + &%,#0%

a/ e((ect o( .rior years .ro*isions + 11!,%2"

-thers 8"1,"!!9 8&$,20!9

a/ char'e (or the year 10,%#2,&!% 10,#!&,#0"

31. CREDIT RATIN9

7CR thro'h its noti(ication dated Febrary 0$, 2013, has .'raded bank?s lon' term credit ratin' (rom

Odoble .lsP to Ori.le P and maintained short+term credit ratin' o( 1I O one .lsP4

Note 2013 2012

(Rupees i t!ous"#$

3

2 BASIC AND DILTED EARNIN9S PER SARE - PRE TA

7ro(it be(ore ta/ation 32,2&&,20" 32,0"3,%$$

Nu/&e% o s!"%es

>ei'hted a*era'e nmber o( shares otstandin' drin' the year 1,011,&$!,13" 1,011,&$!,13"

Rupees

Basic and dilted earnin's .er share + .re ta/ 314#1 314!&

Rupees i t!ous"#

3

3 BASIC AND DILTED EARNIN9S PER SARE - AFTER TA

7ro(it a(ter ta/ation 21,$#",33& 20,!%3,002

Nu/&e% o s!"%es

>ei'hted a*era'e nmber o( shares otstandin' drin' the year 1,011,&$!,13" 1,011,&$!,13"

Rupees

Basic and dilted earnin's .er share + a(ter ta/ 2142$ 204$3


64/294

1* >ei'hted a*era'e nmber o( shares otstandin' (or 2012 ha*e been restated to 'i*e e((ect o( bons shares isse

drin' the year4

(Rupees i t!ous"#$

3


65/294

10,3%2 10,!12

&1 %1

10,$"3 10,!&33"4

1 1,$%% 1,#2&

11,#30 12,!11

35.1 his e/cldes otsorced secrity

'ards

andtea

ser*ices sta((4


66/294

DEFINED BENEFIT PLANS AND OTER BENEFITS

36.1 9ee%"4 #es*%iptio

he Bank o.erates the (ollowin' retirement bene(its (or its em.loyees=

1- 7ension (nd 8(inal salary .lan9 + ( nded

2- Bene*olent scheme + n(nded

3- 7ost retirement medical bene(its + n(nded

4-


67/294

Bene(its .aid + + 8101,"109 8$&,#"39 823$,011981$0,$2

29 83%0,&$0981&1,3&

19

-ther Com.rehensi*e income 8$"!,1%1981,21$,$&

#9 8$,#%$9 82!,33"9 81%&,#3#9 12#,#"0 "!$,12!1$1,#2

0

Re(nd 5 withdrawn (rom (nd1$,%31,

& + + + + + + +

Closin' balance o( 8recei*able9 5 .ayable8",&"$,20%

981&,$2&,$

&39213,$3

& 2"%,0,3$0,$%

!1,"!",!

3$ #3$,00#"#$,10

0

36.5 Re*o*i4i"tio o t!e p%eset +"4ue o t!e #eie# &eeit o&4i7"tios

App%o+e# pesiou#

E/p4o'ees*ot%i&uto%'

Post %eti%e/et/e#i*"4

E/p4o'ees*o/pes"te#

N

ote

&ee+o4ets*!e/e &eeits "&se*es

2013 2012201

3 2012 2013 2012 2013 2012Restate

dRestate

dRestat

edRestat

ed

---------------------------------------------------------

(Rupees it!ous"#$---------------------------------------------------------

7resent *ale o( obli'ation as at Aanary 01, $,2"#,!%1 $,2!2,$21 2"%,0 2&3,$%%1,"!",!3

$1,3&&,#%

0 "#$,100 "3",&%0

Crrent ser*ice cost "3,%3# "3,$## 13,&2! 1",230 13,%%3 1",!#% 3!,$$% !2,&!0

)nterest cost $"1,%2% "1&,0#1 2$,%!0 33,!%0 1%3,&3" 1%1,$3# $#,0$2 3$,&31

Bene(its .aid 8##0,""$9 8""$,21098101,"1

09 8$&,#"39 823$,0119 81$0,$229 83%0,&$09 81&1,3&19

Loss 5 8'ain9 on settlement 823,2"19 + 2$,2$% + 1&$ + !1,13$ +

+8:ain9 5 loss (rom chan'e in demo'ra.hic assm.tions 22,!%0 + ",&2$ + 3#,#!" + 8!,!&%9 +

+8:ain9 5 loss (rom chan'e in (inancial assm.tions 3$,000 81$3,1!39 12,1$1 81$,$009 30,23& 8$%,1!29 8!2,%"$9 1,"##

+


68/294

C!"7es i "i% +"4ues o p4" "ssets

App%o+e# pesiou#

E/p4o'ees*ot%i&uto%'

Post %eti%e/et/e#i*"4

E/p4o'ees*o/pes"te#

Note &ee+o4et s*!e/e &eeits "&se*es

2013 2012 2013 2012

2013 2012 2013 2012

Restated

Restated Restated Restated

---------------------------------------------------------

(R

upeesit!ous"#$

------ --------- --------- --------- --------- ---------------

6etassets asatAanary

01,

22,!&

&,1"$

1#,"$3,3&

& + + + + + +


69/294


70/294

7resent *ale o( de(ined bene(it obli'ation 213,$3& 2"%,0 2&3,$%% 31$,$1$ 2##,3&&

Fair *ale o( .lan assets + + + + +

213,$3& 2"%,0 2&3,$%% 31$,$1$ 2##,3&&

A*tu"%i"4 7"i (4oss$ o o&4i7"tio


71/294


72/294


73/294

Se'ment s.eci(ic .ro*ision re@ired + + 11,2!$,#"& 11,11",12# + 22,3&0,0&%

Se'ment liabilities 1#,$01 $1%,!%1,%3$""%,#%2,0&

01%!,0#",&&

# 8$#!,!&$,&239 !"",0%$,2&1

De(erred ta/ liability + + + + + #,"2#,%2%

otal liabilities + net 1#,$01$1%,!%1,%3

$""%,#%2,0&

01%!,0#",&&

#8$#!,!&$,&2

39!!$,!0$,00

&

Se'ment retrn on assets 8R-9 8G9 $24"3G 04&!G

Se'ment cost o( (nd 8G9 + 1143!G

otal income Q 6et

mark. income I

non+mark. income

otal e/.enses Q

6on Mark .

e/.enses I

7ro*isions Se'ment

assets and liabilities

inclde inter

se'ment balances4

ransactions between re.ortable se'ments are based on

an a..ro.riate trans(er .ricin' mechanism sin' a'reed

rates4 Se'ment cost o( (nds ha*e been com.ted basedon the a*era'e balances4

+

+


74/294

RELATED PART. TRANSACTIONS AND B ALANCES

he Bank has related .arty relationshi. with its associates, sbsidiaries, em.loyee bene(it .lans and its key mana'ement .ersonnel 8incldin' their associates9 and com.anies with common directors4 he detail o( in*estme

sbsidiary com.anies and associates are stated in nne/re ) 8note " H !9 t o these (inancial statements4

he Bank enters into transactions with related .arties in the normal corse o( bsiness4 Contribtions to and accrals in res.ect o( sta(( retirement bene(its and other bene(it .lans are made in accordance with the actarial *alatio

terms o( the contribtion .lan4 Remneration to the e/ecti*es 5 o((icers is determined in accordance with the terms o( their a..ointment4 Remneration to Chie( ithdrawn drin' the year8!,20",#1

"9 8!,$23,3&%9 81&,&"%,&3"9 810,#11,!&39 821%,2"0981,"00,&1%

9 8%3,#03,3!!9 83!,&10,&2!981,0#%,&01

981,1%2,1

Closin' balance #31,!!" 2,&!3,&%$ #%&,$0& #%!,!$2 2$,%%1 %$,$!1 1$,$&%,"1% 2!,&"0,""# 12",1#% $!,03

A#+"*es (se*u%e# $

-.enin' balance 2,%#" + + + $&",%$# $$#,%2# #&,0"! &1,302 "3,&!" $#,%$

dditions 5 adstments drin' the year + 3,3!% + + $0,&%$ 3!,020 $0!,3"$ $1",& 2%,"!# 12,$3

Re.aid drin' the year 8!109 8"%29 + + + 83&%,&2!9 83##,13"9 813,!!#98&,3

$9

Closin' balance 2,1&" 2,%#" + + "2!,!23 $&",%$# 11!,"&$ #&,0"! !%,%!" "3,&!

Outst"#i7 B"4"*e o *%e#it *"%# "$" &"2 + + + + 2 +2,!3

" #"

Re*ei+"&4e %o/ Pesio u# - + + + + + ",&"$,20% 1&,$2&, $&3 + +

B Ot!e% t%"s"*tios (i*4u#i7 p%oit "# 4oss %e4"te# t%"s"*tios$

Di%e*to%s Asso*i"tes Su&si#i"%ies Ot!e% %e4"te# p"%ties Ke' /""7e/et

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

-----------------------------------------------------------------

(Rupees it!ous"#$-----------------------------------------------------------------

-tstandin' commitments and contin'ent liabilities + + 10,&0" &,3!" + + #0,1%1 &1#,&%3 + +

Forward (orei'n e/chan'e contracts 86otional9 + otstandin' + + + + + + ",!23,3"1 + + +

nreali;ed 'ain on (orward (orei'n e/chan'e contracts + otstandin' + + + + + + 1#,$2$ + + +

Forward contracts drin' the year + + + + + + 3$,!!",$22 + + +

Re.o deals drin' the year + + 3#,%$2,10% + + + + + + +

Borrowin's + + + + + + 3,1"#,%3& + + +

rade .ayable + + %,"#$ 1$,321 3,#1& 12,1%% 2%,$33 %,01# + +

Retention money + + + + + + 3,!12 + + +

Mark. .ayable + "0$ $0" 12,!$" 1"! 1"! 1,0%1,2&% 1,0$",!22 &0 "$

d*ance recei*able + + + + + + "&,0&" 20,000 + +

Mark. Recei*able + + + + $,!30$,$$

& ",121 2,23% + +

Recei*able (or other e/.enses + + + + %,3&12,1$

" + + + +

Commission Recei*able + + + + 2",1&1#,&2

! + + + +


75/294

-tstandin' )n*estments in mtal (nds + + + + + + + $,0"0,000 + +

Di*estment in hshali Bank Limited + + + + + + + 300,000 + +

)nsrance .remim .aid+net o( re(nd + + 2$%,&03 30#,$%2 + + + + + +

)nsrance claim settled + + #",!$" 3#,1#3 + + + + + +

Mark. income on ad*ances + + + + 23,!!" 2",1&0 %,#&3 %,!$0!,2!

# 2,&$

Rent )ncome Recei*ed + + 2,02" 2,$30 + + + + + +

Di*idend )ncome + + 12!,11& "$,0"1 #2,3#2 &3,1"3 1"#,"%0 $0&,!3# + +

Ca.ital 'ain 5 8loss9 + + + + + + 303,21" 833,#1!9 + +

Commission income + + %"1,0!# "0#,!#& 3&,&03 3!,0%$ %,20# &,$$# + +B Ot!e%t%"s"*tios(i*4u#i7p%oit "#4oss%e4"te#

t%"s"*tios$

Di%e*t

o%s

Asso*i"tes

Su&

si#i"%ies

Ot!e%%e4"te

#

p"%ties

Ke'

/""7e/et

2013 2012

2013 2012 2013 2012

2013 2012 2013

-----------------------------------------------------------------

(Rupeesit!ous"#$----------------------------------------------------------------

-

Reimbrsemento(e/.enses + + + + 12,0&1 13,1## + + + +Brokera'ee/.ense + + + + + + + 3"$ + +7roceeds (romsale o((i/edassets + + + + + + + 2,! "!2:ain 58loss9on saleo( (i/ed

assets + + + + + + + + 82,30%9 +M-tsorcin'


76/294

'arde/.ensesRemnerationandnon+e/ecti*edirectors (ee

&",#%% 11!," + + + + + +

311,!0" 32$,2!!

Mark+.e/.ense

103,3#$ 321,%

%1,2%" "",!"% 1,$&3 2,0#!

2,0&0,%!0 2,#&3, 2,31% 3,333

Clearin'

e/.enses .aid to6)F + + + + + + 12$,31" 11",#"& + +Contribtion to.ro*ident (nd + + + + + + 1#%,%21 1&&,$1% + +:asChar'es + + + + + + 10,#3# 12,%%0 + +Miscellaneose/.enses and.ayments + +

1%%,0 11#,$32 + + 11%,%3& $2,!2& + +

he details o( director?s com.ensations are 'i*en in note 3& to these (inancial statements4


77/294


78/294

! p4us CCB1000

H1000

H102@

H112@

H11;;

H12@0

H 12@0H

1- K8Consistin' o(C


79/294

BankNs re'latory ca.ital is analysed into three tiers4

1- Common


80/294

C"pit"4 St%u*tu%e

Co//o E5uit' Tie% 1 *"pit"4 (CET1$ Ist%u/ets "# %ese%+es

1 Flly 7aid+. Ca.ital

2 Balance in Share 7remim ccont

3 Reser*e (or isse o( Bons Shares

4 :eneral5 Stattory Reser*es

5 :ain58Losses9 on deri*ati*es held as Cash Flow Eed'e

6 na..ro.riated .ro(its

8 CET 1 &eo%e Re7u4"to%' A#8ust/ets

Co//o E5uit' Tie% 1 *"pit"4 Re7u4"to%' "#8ust/ets

9 :oodwill 8net o( related de(erred ta/ liability9

10 ll other intan'ibles 8net o( any associated de(erred ta/ liability9

11 Short(all o( .ro*isions a'ainst classi(ied assets12 De(erred ta/ assets that rely on (tre .ro(itability e/cldin' those arisin' (rom

tem.orary di((erences 8net o( related ta/ liability9

13 De(ined+bene(it .ension (nd net assets

14 Reci.rocal cross holdin's in C


81/294

31-12-201331-12-

2012

A/out A/outssu&8e*t to

P%e -

B"se4 III

t%e"t/et

(----------Rupees i t!ous"#---------$

10,11&,$!1 #,1#&,!01#,%02,"2& #,%02,"2&

+ +

3!,300,$#$3$,1"0,#!

0+ +

$0,""2,0$33$,%0",03

&

>=,=?3,@2=;?,?@?,12

?

+ +&3!,&13 !2!,!21

+ +

+ ++ 3,&0",233 +

+ 10,%%%+ ++ ++ ++ +

+ +

+ +

+ +

+ +++ ++ ++++

%3",0!! %%#,211

1,@?1,;?> 1,

>@,101,=


82/294

ca.ital o( the entity %1 o( which= de(erred ta/ assets%2 o( which= De(ined+bene(it .ension (nd net assets%3 o( which= -thers%$ otal Market Risk >ei'hted ssets%" otal -.erational Risk >ei'hted ssets

C"pit"4 R"tios "# &ue%s (i pe%*et"7e o %is ei7!te# "ssets$

%! C%% ier+1 ca.ital to total R>%& otal ca.ital to R>%#

Bank s.eci(ic b((er re@irement 8minimm C


83/294

dedction was made (rom C


84/294

Step 1

pu&4is!e#

i"*i"4

st"te/ets

31-12- 2013

(Rupees i t!ous"#$

Assets

Cash and balances with treasry banks "#,#$!,1"0

Balanced with other banks 1,"3!,#$!

Lendin' to (inancial instittions 1,22$,!3&

)n*estments $$#,00!,01#

d*ances 2$&,2$2,#!"

-.eratin' (i/ed assets 2&,"#",33&

De(erred ta/ assets

-ther assets 2!,#"!,31"

Tot"4 "ssets ;1@,@0;,3?1

Li"&i4ities E5uit'

Bills .ayable 10,13&,%2!

Borrowin's 3&,"$2,!!0

De.osits and other acconts !32,330,2&!

Sb+ordinated loans

Liabilities a'ainst assets sbect to (inance lease

De(erred ta/ liabilities $,201,3%3

-ther liabilities 20,0!$,3$"

Tot"4 4i"&i4ities ?0@,2??,3>0

Share ca.ital 10,11&,$!1

Reser*es $!,!01,21$

na..ro.riated .ro(it $0,""2,0$3

Minority )nterest

Sr.ls on re*alation o( assets 12,#"#,2!3

Tot"4 E5uit' 110,230,>;1

Tot"4 4i"&i4ities e5uit' ;1@,@0;,3?1


85/294

As pe% #e%

Re

Step 2

pu&4is!e# %e7u4"to%'

i"*i"4 s*ope o

st"te/ets*oso4i#"tio

Assets

31-12- 2013 31-12- 2013

Cash and balances with treasry banks "#,#$!,1"0 "#,#$!,1"0

Balanced with other banks 1,"3!,#$! 1,"3!,#$!

Lendin' to (inancial instittions 1,22$,!3& 1,22$,!3&

)n*estments $$#,00!,01# $$#,00!,01#

of which: Non-significant capital investments in capital of other financial

+ + ainstitutions exceeding 10% threshold

of which: significant capital investments in financial sector entities exceeding

+ 102,"!! bregulatory threshold

of which: Mutual Funds exceeding regulatory threshold + c

of which: reciprocal crossholding of capital instrument + d

of which: others e

d*ances 2$&,2$2,#!" 2$&,2$2,#!"

shortfall in provisions/ excess of total ! amount over eligi"le provisions

+ + (under #$

general provisions reflected in &ier ' capital $##,1$" $##,1$" '

Fi/ed ssets 2&,"#",33& 2&,"#",33&

of which: #ntangi"les &3!,&13 &3!,&13 k

De(erred a/ ssets + +

of which: (&)s excluding those arising from temporary differences

of which: (&)s arising from temporary differences exceeding regulatory

+ + h

+ + ithreshold-ther assets 2!,#"!,31" 2!,#"!,31"

of which: *oodwill + +

of which: (efined-"enefit pension fund net assets ",&"$,20% ",&"$,20% l

Tot"4 "ssets ;1@,@0;,3?1 ;1@,@0;,3?1

Li"&i4ities E5uit'

Bills .ayable 10,13&,%2! 10,13&,%2!

Borrowin's 3&,"$2,!!0 3&,"$2,!!0

De.osits and other acconts !32,330,2&! !32,330,2&!

Sb+ordinated loans + +

of which: eligi"le for inclusion in )&1 + + mof which: eligi"le for inclusion in &ier ' + + n

Liabilities a'ainst assets sbect to (inance lease + +

De(erred ta/ liabilities $,201,3%3 $,201,3%3

of which: (&!s related to goodwill + + o

of which: (&!s related to intangi"le assets + + .

of which: (&!s related to defined pension fund net assets 2,0$&,#%$ 2,0$&,#%$ @

of which: other deferred tax lia"ilities 2,1"2,3## 2,1"2,3## r

-ther liabilities 20,0!$,3$" 20,0!$,3$"


86/294

Tot"4 4i"&i4ities ?0@,2??,3>0 ?0@,2??,3>0

Share ca.ital 1#,&20,# 1#,&20,#

of which: amount eligi"le for +&1 1#,&20,# 1#,&20,# s

of which: amount eligi"le for )&1 + + t

Reser*es 3!,&,!&! 3!,&,!&!

of which: portion eligi"le for inclusion in +&1 ,general reserve statutory

3!,300,$#$ 3!,300,$#$ reserve.

of which: portion eligi"le for inclusion in &ier ' "#&,1#2 "#&,1#2 *

na..ro.riated .ro(it $0,""2,0$3 $0,""2,0$3 w

Minority )nterest + +

of which: portion eligi"le for inclusion in +&1 + + /

of which: portion eligi"le for inclusion in )&1 + + y

of which: portion eligi"le for inclusion in &ier ' + + ;

Sr.ls on re*alation o( assets 12,#"#,2!3 12,#"#,2!3

of which: $evaluation reserves on roperty 11,2&%,#&% 11,2&%,#&% aa

of which: nrealied *ains/!osses on )F2 1,!%1,2%! 1,!%1,2%!

#n case of (eficit on revaluation ,deduction from +&1. + +

a

bTot"4 E5uit' 110,230,>;1 110,230,>;1

Tot"4 4i"&i4ities E5uit' ;1@,@0;,3?1 ;1@,@0;,3?1

Co/poeto

Sou%*e&"se#

%e7u4"to%'o

%ee%e*e

Step 3*"pit"4

%epo%te#u/&e%

%o/

&' &" step 2

Rupees i

t!ous"#

Co//o E5uit' Tie% 1 *"pit"4 (CET1$ Ist%u/ets "# %ese%+es

1 Flly 7aid+. Ca.ital 10,11&,$!1

8s92 Balance in Share 7remim ccont #,%02,"2&3 Reser*e (or isse o( Bons Shares +$ :eneral5 Stattory Reser*es 3!,300,$#$

89" :ain58Losses9 on deri*ati*es held as Cash Flow Eed'e +! na..ro.riated5nremitted .ro(its58losses9 $0,""2,0$3 8w9

& CET 1 &eo%e Re7u4"to%' A#8ust/ets >=,=?3,@2=

Co//o E5uit' Tie% 1 *"pit"4 Re7u4"to%' "#8ust/ets

# :oodwill 8net o( related de(erred ta/ liability9 89 + 8o9+10

ll other intan'ibles 8net o( any associated de(erred ta/ liability9 &3!,&13 8k9 + 8.911

Short(all o( .ro*isions a'ainst classi(ied assets + 8(9

12

De(erred ta/ assets that rely on (tre .ro(itability e/cldin' thosearisin'

8h9 + 8rT K 0G(rom tem.orary di((erences 8net o( related ta/ liability9 +

13

De(ined+bene(it .ension (nd net assets +8l9 + 8@9T K

0G


87/294

1$

Reci.rocal cross holdin's in C

Co//o E5uit' Tie% 1 >@,101,=


88/294

A##itio"4 Tie% 1 (AT 1$ C"pit"4

31

Jali (yin' dditional ier+1 instrments .ls any related share .remim +

32

o( which= Classi(ied as e@ity +

8t9

3

3 o( which= Classi(ied as liabilities +

8m

93$

dditional ier+1 ca.ital instrments issed by consolidated sbsidiaries

and held by third .arties 8amont allowed in 'ro. 19 +

8y9

3"

o( which= instrment issed by sbsidiaries sbect to .hase ot +

3!

AT1 &eo%e %e7u4"to%' "#8ust/ets +

A##itio"4 Tie% 1 C"pit"4 %e7u4"to%' "#8ust/ets

3%

)n*estment in mtal (nds e/ceedin' the .rescribed limit 8SB7 s.eci(ic

adstment9 +3&

)n*estment in own 1 ca.ital instrments +3#

Reci.rocal cross holdin's in dditional ier 1 ca.ital instrments +

40 )n*estments in the ca.ital instrments o( bankin', (inancial andinsrance entities that are otside the sco.e o( re'latory consolidation,

where the bank does not own more than 10G o( the issed share ca.ital8amont

abo*e 10G threshold9 +

8ac9

41 Si'ni(icant in*estments in the ca.ital instrments issed bybankin', (inancial and insrance entities that are otside the sco.e o(

re'latory

consolidation +

8a

d9

42 7ortion o( dedction a..lied "0="0 to core ca.ital ands..lementary ca.ital based on .re+Basel ))) treatment which, drin'

transitional .eriod,

remain sbect to dedction (rom tier+1 ca.ital %3",0!!

$3

Re'latory adstments a..lied to dditional ier 1 de to ins((icientier

2 to co*er dedctions +

$$

otal o( Re'latory dstment a..lied to 1 ca.ital %3",0!!$"

dditional ier 1 ca.ital +$!

A##itio"4 Tie% 1 *"pit"4 %e*o7ie# o% *"pit"4 "#e5u"*' +

Tie% 1 C"pit"4 (CET1 "#/issi&4e AT1$ >@,101,=


89/294

"!

ndisclosed5-ther Reser*es 8i( any9 +

"%

T2 &eo%e %e7u4"to%' "#8ust/ets =,>2>,00@

Tie% 2 C"pit"4 %e7u4"to%' "#8ust/ets

58 7ortion o( dedction a..lied "0="0 to core ca.ital ands..lementary ca.ital based on .re+Basel ))) treatment which, drin'

transitional .eriod,

remain sbect to dedction (rom tier+2 ca.ital %3",0!!

"# Reci.rocal cross holdin's in ier 2 instrments +!0

)n*estment in own ier 2 ca.ital instrment +

61 )n*estments in the ca.ital instrments o( bankin', (inancial andinsrance entities that are otside the sco.e o( re'latory consolidation,

where the bank does not own more than 10G o( the issed share ca.ital

8amont

abo*e 10G threshold9 +

8

a

e9

62 Si'ni(icant in*estments in the ca.ital instrments issed bybankin', (inancial and insrance entities that are otside the sco.e o(

re'latory

consolidation +

8a(

9!3

mont o( Re'latory dstment a..lied to 2 ca.ital ?3@,0==!$

ier 2 ca.ital 829 =,1>3,>3>!"

ier 2 ca.ital reco'ni;ed (or ca.ital ade@acy =,1>3,>3>!!


90/294

M"i Fe"tu%es Te/p4"te o Re7u4"to%' C"pit"4 Ist%u/ets

1 )sser MCB Bank Limited

2 ni@e identi(ier 8e' S< Symbol or Bloomber' identi(ier etc49 MCB

Documents

Annual Accounts 2013