History of the Bank

It started operations in October 2003 when all assets, liabilities, rights and obligations of the former National Development Leasing Corporation (NDLC) and Pakistan operations of IFIC Bank were amalgamated with and into the Bank with a paid up capital of Rs.1.2bn. In April 2004 the Pakistan operations of Credit Agricole Indosuez were also amalgamated with and into NIB. In March 2005 Temasek Holdings of Singapore acquired 25% shareholding in NIB Bank, through Bugis Investments. This shareholding was further enhanced to over 70% in June '05 following an increase in NIB's paid up capital to Rs 3.4 bn. NIB Bank has since grown rapidly from a base of 2 branches in 2003 to 45 in the 4th quarter of 2007, with a corresponding increase in its assets and deposits base. NIB Bank's vision is to rank amongst the top 5 banks in the country. Therefore towards the end of June 2007 it acquired majority shares of PICIC with the aim of merging PICIC and its commercial banking subsidiary PICIC Commercial Bank Limited (PCBL) into NIB. The acquisition was financed through the country's largest private sector rights issue, with resultant increase in NIB's paid up capital to Rs.22.0 bn. The PICIC acquisition bought with it another subsidiary "PICIC AMC" and an affiliate "PICIC Insurance". NIB already has a shareholding in NAFA, an Asset Management Company (AMC) whose shareholders also include National Bank of Pakistan and Fullerton Fund Management Company; thus NIB Groups asset management business has also increased, while it has diversified into the insurance business as well. The legal merger of PICIC & PCBL into NIB took place on December 31, 2007, once all regulatory approvals were in place. NIB Bank continues to be led by Khawaja Iqbal Hassan, supported by four business heads and ten business enabling function heads. The merger resulted in a vastly expanded branch network and total assets of Rs 176.6 bn on merger date. NIB has the highest paid up capital of Rs. 40.4 bn amongst all banks in Pakistan. Merger synergies include lower cost deposits, enhanced customer service delivery channels and overall improved efficiencies. These help provide a competitive edge in the face of increasing competition in the banking sector. Temasek Holdings continues to be the largest single investor in NIB Bank with approximately 74% shareholding. The powerful franchise of the three merged entities has been brought together to form a much larger and stronger bank to complete in the market place.

Board of Directors

Francis Andrew Rozario Chia Yew Hock Wilson Tejpal Singh Hora Asif Jooma Mahmudul Huq Bhuiyan Syed Aamir Zahidi Sng Seow Wah Khawaja Iqbal Hassan

Chairman Director Director Director Director Director Director Director and President/CEO

Khawaja Iqbal Hassan: President and CEO

Khawaja Iqbal Hassan is the President and Chief Executive Officer of NIB Bank. NIB Bank is the fastest growing commercial bank in Pakistan and has recently acquired controlling shares in Pakistan Industrial Credit and Investment Corporation (PICIC) and PICIC Commercial Bank. Mr. Iqbal Hassan is the founder of NIB Bank, which he created in 2003 through the merger of Pakistans then largest leasing company, NDLC, and the domestic branches of IFIC Bank. This was followed by an acquisition of the domestic branches of the French bank, Credit Agricole Indosuez.

Business Function Heads

Naseer ul Hasan: Consumer & Small Enterprises Group Head (CSEG) Naseer has over 14 years of consumer banking experience with leading International Banks. He brings with him a wealth of Consumer Banking experience that he earned during his assignments in Pakistan, Brussels, UK and UAE. A computer science graduate. Habib Yousuf: Corporate & Investment Banking Group Head (CIBG)

Habib has over 15 years of investment and commercial banking experience with Global Securities, UBS and Citibank prior to joining NIB. Habib holds an MBA from the Institute of Business Administration, Karachi.

Shah Miftaah Ul Azim Azmi : Treasury and Capital Markets Group Head (TCMG)
Mr. Azmi has over 16 years of experience in the areas of Treasury, Capital Market and Portfolio Management. Prior to joining NIB Bank.Mr. Azmi holds both an MBA degree from the Hamdard Institute of Management Sciences and an LLB degree from the University of Karachi.

Masood Tyabji:

Head of Small Medium Enterprises and Commercial Business Group Head (SMEC) Masood Tyabji holds an MBA from IBA, Karachi. Masood has rich and diverse experience in areas of Credit and Risk, Investment Banking, Islamic banking with excellent exposure in the International Markets.

Enabling Function Heads Faisal Chishti : Integrated Risk Management Group Head (IRMG)
Faisal has almost 15 years of experience and brings with him extensive experience in risk management primarily in areas of portfolio management, credit administration, collections management and fraud Risk Management.

Najeeb Gilani: Internal Audit Group Head (IAG)

Najeeb Gilani is heading NIB Internal Audit Group Head reporting to the Audit Committee of the Board of Directors.

Faraz Haider: Compliance & Operational Risk Group Head (CORG)

Faraz brings with him over 12 years of banking experience. He joined NIB from Standard Chartered Bank (SCB), he is a Certified Internal Auditor (CIA), Financial Risk Manager (FRM), and a Chartered Financial Analyst (CFA).

Nauman Hussain: Head of Operations Group

Nauman has 29 years of International Banking Experience in Middle East, Asia and Pakistan.

Yameen Kerai: Strategy, Planning & Alignment Group (SPAG)

Yameen has over 25 years experience in public accounting, and in Finance roles in the Insurance and Banking industry..Currently, he is heading Strategy, Planning & Alignment Group (SPAG) at NIB Bank.

Shakeel Pal: Human Capital Optimization Group Head (HCOG)

Shakeel brings with him more than 15 years of core HR experience. Shakeel was amongst the first HR professionals in Pakistan to be awarded a Lead Auditor status for the Quality Standard of ISO-9000 by British Standard Association.

Rayomond Kotwal: Chief Financial Officer / Finance, Accounting & Business Analytics Group Head (FABG)
Rayomond is a seasoned Finance professional with over 22 years of experience covering diverse roles and markets. Rayomond holds a Masters Degree in Electrical Engineering & Computer Science from MIT in the US and an MBA in Finance from IBA.

Mary James: Chief Information Officer - Information Technology

Mary has over 25 years experience and extensive expertise in providing leadership.Mary joins NIB from Bank Danamon Indonesia, where she spent 5 years and was an integral part of the team that transformed the banks IT landscape.

Aurangzeb Afridi: Head of Customer Experience & Service Quality

Aurangzeb (Ronny) Afridi is the Head of Customer Experience & Service Quality. Ronny brings with him over 20 years of multi-faceted banking experience.

Vision and Mission

Our Mission: To improve the quality of life for millions

Our Vision: To be the most admired Financial Institution in Pakistan

Head Quarter
Customer Services, CSEG NIB Bank Limited, Muhammadi House P.O. Box 6942, I.I. Chundrigar Road,

Total Branches and Branches in Provinces

Punjab
Total Population of Province NIB Branches 92,593,586

Sindh
35,470,648

N.W.F.P
20,215,000

Baluchistan
11,934,339

Total NIB Branches

115

85

40

20

260

ATM Locations
Abotabad, Daska, Faisalabad, Gujranwala, Hyderabad, Islamabad, Karachi, Lahore, Jhelum, Multan, Murree, Muzaffargarh, Peshawar, Quetta, Rahimyar Khan, Rawalpindi, Sahiwal, Sargodha, Sialkot, Wah.

Account Wise Deposits

Fixed Deposits Savings Deposits Current Accounts Margin Accounts Remunerative Deposits Non-remunerative Deposits Total 44,456,151 30,324,475 22,685,035 739,294 7,477,517 169,565 105,852,037

Account Wise Advances

Loans, Cash Credits, Running finance etc in Pakistan Net investment in finance lease in Pakistan Bills discounted and purchased (Payable in Pakistan) Bills discounted and purchased (Payable outside Pakistan) Advance Gross Provision against non-performing advances (Specific) Provision against non-performing advances (General) Advances- Net Provisions

89,726,077 3,283,806 524,352 2,174,736 95,708,971 15,502,992 232,001 79,973,978

Salaam Banking (New Product in 2009)

Salaam is an everyday salutation, a special tribute, a mark of admiration, an expression of respect that is communicated through a gesture, a nod, a salute or a handshake. By saying Salaam we mean to pay homage to the people belonging to self employed mass market which includes small enterprises as well (retailers, traders & services). We commit to serve these hard working people with a strong belief that we are privileged to be their banking partner. We will assist them in their business financial needs by providing them basic and advanced banking services at their door step and we will do it with dedication and respect because they value respect more than any thing. Our unique proposition provides our customers with:

o o o

Basic and modern banking facilities. Account opening with no minimum balance requirement. Dedicated relationship officers to assist and consult for financial matters. Branch presence close to customers. Business loans, insurance and other value added services provided through one stop shop.

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Banks Deposits/Advances Increase/Decrease from Year 2007 to 2009

120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 2007 2008 2009 Deposits Advances

YEAR ADVANCES DEPOSITS

2007 81,932,379 116,671,219

2008 80,344,193 104,586,167

2009 79,973,978 105,852,037

The above graph shows gradual decrease in deposits from 2007 to 2008. The decrease in deposits from 2007 to 2008 shows the inefficiency of the bank to attract more deposits rather they decreased from 116 billion to 104 billion but its increases again in year 2009 to 105 billions which is a good sign for the bank.

Banks Earnings from Loans/Investments in Year 2007 to 2009

41,000,000 40,000,000 39,000,000 38,000,000 37,000,000 36,000,000 35,000,000 34,000,000 33,000,000 32,000,000

Investments

2007

2008

2009

YEAR INVESTMENTS

2007 40,439,935

2008 35,176,823

2009 37,322,588

We can see that there is a huge fluctuation in 2007 and 2008 its just because of the fact that the NIB bank acquired the PICIC commercial bank. But however these investments were declined from 2007 to 2008 from 40 billion approx to 35 billion approx. it is because of the economic melt down and recession originating from the west which affected the whole world so as Pakistanis banks as well but it started to show growth once again in year 2009 with approximately 37 billion investments in this year.

Banks Earnings from Services Rendered in Year 2007 to 2009

2,000,000 1,500,000 1,000,000 500,000 0

Services Rendered

2007

2008

2009

YEAR SERVICES RENDERED

2007 1,107,903

2008 1,998,356

2009 1,285,347

We can see that there is a huge fluctuation from 2007 and 2008 its just because of the fact that the NIB bank acquired the PICIC commercial bank. So its net earning from services rendered increased dramatically. In 2009 its also going pretty good and as its a quarterly statement figures so its expected that the figure will increase when the year will end.

Variation between SBP and NIB Banks on Interest Rate on Deposits and Advances

16 14 12 10 8 6 4 2 0 Deposits Avances SBP NIB

SBP NIB

DEPOSIT 7.38% 7.15%

ADVANCES 13.71% 15%

The above chart shows the variation in the interest rate on Deposit and Advances between State bank of Pakistan and NIB bank. The Deposit rate mentioned by SBP is 7.38% whereas in NIB it is 7.15% a little less. SBP interest on Advances is 13.71% and in NIB the interest rate is 15% in advances section the difference is much higher as compared to Deposits because the difference between the interest rate of Deposits and Advances is the earning of the bank.

Promotion Methods for Advances and Deposits NIB Television Commercials for Products and Services
In addition to the above mention link of NIB Bank where they used televeion as way of promotion NIB promotes its Products and services through print media as well (e.g The News etc) and also through billboards in all the main cities of Pakistan.

R & D for providing better services to the Customers

The only type of R&D capitalised by banks is investment in the development of internally generated software which underpins their business systems. Banks do not generally capitalise their R&D due to the nature of the sector which does not encourage the development of proprietary products since they offer little as a source of sustainable competitive advantage. Instead, they typically derive competitive advantage from brands, reputation, customer relationships, market positioning and the skills of management and staff. The constantly changing regulatory and operational environment requires up-to-date knowledge and skills of latest systems. Owing to this reason research and development is on the managements top priority agenda. The banks training and research wing which is manned by highly competent trainers and researchers is successfully catering to the training needs of the manpower. So that they can provide up to date and best services to their customers.

In 2000 the bank also started publishing a newsletter aimed at increasing interaction and exchange of views between staff for better coordinations and communication. The employees are encouraged to contribute articles for this newsletter, which serves the dual purpose of staff development and evaluation of common corporate culture.