Annual Report 2017

Six Years Financial Summary 2012 - 2017

2017 2016 2015 2014 2013 2012

Profit & Loss account
Mark-up/ return earned Rs. Mln 74,091 67,400 80,393 77,269 65,064 68,356
Mark-up/ return expensed "" 31,684 23,586 31,077 33,757 27,196 27,500
Fund based income "" 42,407 43,814 49,316 43,512 37,868 40,856
Fee, Commission, brokerage & FX income "" 11,278 9,040 10,871 10,235 8,108 7,131
Dividend and capital gains "" 6,682 7,135 5,695 2,709 3,063 2,022
Total income "" 60,367 59,989 65,882 56,456 49,039 50,010
Operating expenses "" 28,117 22,989 22,895 21,591 19,639 18,077
Operating profit before tax and provision "" 32,250 36,999 42,987 34,865 29,400 31,933
Provisions / write-offs "" 1,236 925 659 (1,864) (2,888) 291
Profit before tax "" 31,014 36,075 42,329 36,729 32,288 31,642
Profit after tax "" 22,459 21,891 25,546 24,325 21,495 20,673
Cash Dividends "" 18,673 17,808 17,808 15,582 14,166 11,959
Bonus shares "" - - - - 1,012 920

Statement of Financial Position

Authorised capital "" 15,000 15,000 15,000 15,000 15,000 10,000
Paid up capital "" 11,851 11,130 11,130 11,130 10,118 9,199
Reserves "" 70,866 53,347 51,309 48,830 46,601 44,253
Unappropriated Profit "" 53,776 53,469 50,747 46,948 40,552 35,425
Shareholder's equity "" 136,493 117,946 113,186 106,908 97,272 88,877
Surplus on revaluation of assets - net of tax "" 17,073 23,680 24,616 23,196 12,959 13,594
Net Assets "" 153,566 141,627 137,802 130,104 110,231 102,471
Total Assets "" 1,327,311 1,051,814 1,004,410 934,631 815,508 767,075
Earning Assets "" 1,175,352 911,163 872,594 818,676 718,990 663,330
Gross Advances "" 515,058 367,678 322,529 322,318 268,192 262,392
Advances - net of provisions "" 469,356 348,117 304,122 303,559 248,243 239,583
Non-Performing Loans (NPLs) "" 48,753 21,688 20,368 21,908 23,268 25,562
Investments "" 656,964 555,929 565,696 511,137 449,006 402,069
Total Liabilities "" 1,173,745 910,187 866,608 804,527 705,277 664,604
Deposits & other accounts "" 968,483 781,430 696,805 688,330 632,330 545,061
Current & Saving Deposits (CASA) "" 899,364 735,550 650,739 626,112 567,728 464,411
Borrowings "" 133,070 74,515 118,040 59,543 38,543 78,951
Interest bearing Liabilities "" 728,361 557,913 557,056 511,446 456,348 434,619
Contingencies and Commitments "" 458,775 307,566 320,888 226,554 265,428 143,803

Profitability Ratios:
Profit before tax ratio % 41.86% 53.52% 52.65% 47.53% 49.63% 46.29%
Gross Yield on Average Earning Assets "" 7.10% 7.56% 9.51% 10.05% 9.42% 11.08%
Gross Yield on Avg. Earning Assets (incl. dividend & capital gains) "" 7.74% 8.36% 10.18% 10.40% 9.86% 11.42%
Gross Spread "" 57.24% 65.01% 61.34% 56.31% 58.20% 59.77%
Non interest income to total income "" 29.75% 26.96% 25.14% 22.93% 22.78% 18.30%
Return on average equity (ROE) "" 17.65% 18.94% 23.21% 23.83% 23.09% 24.59%
Return on average assets (ROA) "" 1.89% 2.13% 2.63% 2.78% 2.72% 2.91%
Return on Capital Employed (ROCE) "" 17.65% 18.94% 23.21% 23.83% 23.09% 24.59%
Cost to income ratio "" 45.31% 36.80% 33.34% 36.51% 38.15% 34.95%
Cost to income ratio (excluding pf reversal) "" 46.26% 37.66% 34.52% 37.98% 41.62% 38.81%
Admin Exp to Profit before Tax "" 88.20% 61.19% 51.90% 56.12% 57.95% 55.23%

Investment ratios:
Earnings per share (after tax)** Rs. 19.56 19.67 22.95 21.85 19.31 18.57
Earnings per share (before tax)** "" 27.02 32.41 38.03 33.00 29.01 28.43
Breakup value per share (excl. surplus on rev. of assets)** "" 115.18 105.97 101.69 96.05 87.39 79.85
Net assets per share** "" 129.59 127.24 123.81 116.89 99.04 92.06

Market Ratios
Cash Dividend % 160% 160% 160% 140% 140% 130%
Bonus Shares Issued "" - - - - 10.00% 10.00%
Dividend Yield ratio (based on cash dividend) "" 7.54% 6.73% 7.38% 4.58% 4.98% 6.20%
Dividend Payout ratio "" 83.14% 81.35% 69.71% 64.06% 70.61% 62.29%
Price to book value ratio Times 1.84 2.24 2.14 3.18 3.22 2.63
Price to earning ratio "" 10.85 12.09 9.45 13.99 14.56 11.29
Dividend cover ratio "" 1.22 1.23 1.43 1.56 1.52 1.73

67
Six Years’ Financial Summary 2012-2017

2017 2016 2015 2014 2013 2012

Share Information
Market value per share - Dec 31 Rs. 212.32 237.82 216.85 305.65 281.17 209.76
High - during the year "" 267.00 244.82 338.82 311.00 323.00 216.75
Low - during the year "" 188.21 190.20 205.34 234.51 182.20 133.00
Market Capitalisation Rs. Mln 251,612 264,701 241,361 340,198 284,501 192,950

Asset Quality and Liquidity ratios:

Gross Advances to deposits ratio % 53.18% 47.07% 46.29% 46.83% 42.41% 48.14%
Net Advances to deposits ratio "" 48.46% 44.55% 43.65% 44.10% 39.26% 43.96%
Investments to deposits ratio "" 67.83% 71.14% 81.18% 74.26% 71.01% 73.77%
Weighted Average Cost of Deposits "" 2.52% 2.48% 3.37% 4.59% 4.00% 4.45%
CASA to total deposits "" 92.86% 94.13% 93.39% 90.96% 89.78% 84.74%
NPLs to Gross advances ratio "" 9.47% 5.90% 6.32% 6.80% 8.68% 9.74%
NPLs to Shareholders Equity "" 35.72% 18.39% 18.00% 20.49% 23.92% 28.76%
Coverage Ratio (specific provision/ NPLs) "" 91.46% 87.32% 87.63% 82.84% 83.59% 87.55%
Coverage Ratio (total provision/ NPLs) "" 93.74% 90.82% 90.37% 85.62% 85.74% 89.23%
Earning assets to total assets ratio "" 88.55% 86.63% 86.88% 87.59% 88.16% 86.45%
Investments to total assets ratio "" 49.50% 52.85% 56.32% 54.69% 55.06% 52.42%
Cash & Cash Equvilants to Total Assets "" 8.32% 7.45% 6.34% 5.29% 7.46% 7.53%
Cash to Current Liabilities "" 5.29% 7.78% 5.96% 5.16% 5.71% 4.58%
Earning assets to interest bearing Liabilities Times 1.61 1.63 1.57 1.60 1.58 1.53
Deposits to shareholder equity "" 7.10 6.63 6.16 6.44 6.50 6.13
Assets to Equity "" 9.72 8.92 8.87 8.74 8.38 8.63
Current / Quick Ratio "" 2.05 3.05 2.44 1.51 2.51 1.90

Risk Adequacy
Tier I Capital Rs. Mln 129,130 111,999 107,067 104,083 95,102 86,341
Total Eligible Capital "" 147,227 128,968 120,930 117,489 101,296 93,526
Risk Weighted Assets (RWA) "" 895,415 667,195 622,323 575,663 455,189 422,583
Tier I to RWA % 14.42% 16.79% 17.20% 18.08% 20.89% 20.43%
RWA to total assets "" 67.46% 63.43% 61.96% 61.59% 55.82% 55.17%
Capital Adequacy Ratio "" 16.44% 19.33% 19.43% 20.41% 22.25% 22.13%
Net Return on Average RWA "" 2.87% 3.40% 4.26% 4.72% 4.90% 5.17%

Duo Pont Analysis

Net Operating Margin % 37.20% 36.49% 38.78% 43.09% 43.83% 41.34%
Asset Utilization % 5.07% 5.83% 6.80% 6.45% 6.20% 7.04%
Leverage Ratio / Equity Multiplier Times 9.35 8.90 8.81 8.57 8.50 8.45

Industry Share
Deposits % 7.83% 6.98% 7.20% 8.25% 8.40% 8.16%
Advances "" 7.89% 6.60% 6.58% 7.23% 6.59% 6.80%
Market Capitalisation "" 17.85% 14.86% 17.91% 21.44% 22.96% 23.58%
Home Remittance "" 11.64% 11.30% 10.90% 10.68% 10.48% 10.52%
* based on economic data released by State Bank of Pakistan

Consolidated
Total Assets Rs. Mln 1,373,430 1,076,690 1,020,980 941,606 821,278 771,458
Shareholders' Equity "" 138,100 120,152 115,253 110,095 100,165 91,350
Net Assets "" 156,543 145,960 142,177 136,269 115,463 106,475
Profit before tax "" 30,614 36,721 42,789 37,354 32,932 32,065
Profit after tax "" 22,048 22,174 25,035 24,774 21,950 21,153
Return on Average Assets % 1.80% 2.11% 2.55% 2.81% 2.76% 2.94%
Return on Average Equity "" 17.00% 18.76% 22.12% 23.45% 22.80% 24.14%
Earnings per share** Rs. 19.13 19.82 22.38 22.15 19.65 18.76
Breakup value per share (excl. surplus on rev. of assets)** "" 117.02 108.41 103.55 98.91 89.99 82.07
Capital Adequacy Ratio % 16.34% 19.68% 20.07% 20.41% 22.18% 22.16%

Per Branch
Gross Advances Rs. Mln 356.69 297.10 263.72 261.62 220.37 221.06
Deposits "" 670.69 631.20 569.75 558.71 519.58 459.19
CASA "" 622.83 594.14 532.08 508.21 466.50 389.12
PBT "" 21.48 29.14 34.61 29.81 26.53 26.66
Shares held by sponsors / directors / executives and associated companies are disclosed on Page No. 362.
**Adjusted for prior years to reflect bonus shares issued.