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<ul><li><p>First Women Bank Limited </p><p>First Women Bank Limited </p><p>Condensed Interim Financial Information </p><p>(Unaudited) </p><p>For the Nine Months Period ended </p><p>30 September 2016 </p></li><li><p>First Women Bank Limited </p><p>DIRECTORS REPORT FOR THE PERIOD ENDED 30 SEPTEMBER 2016 </p><p>On behalf of the Board of Directors, I am pleased to present the Condensed Interim Financial </p><p>Statements of First Women Bank Limited (the Bank) for the period ended 30 September 2016. </p><p>Economic Review: </p><p>Pakistan has fared well so far owing to supporting macroeconomic environment and the record-high </p><p>foreign exchange reserves have supported stability in the foreign exchange market. However, the </p><p>current account deficit is at the risk of widening further owing to declining exports and rising imports. As </p><p>CPEC related projects are gathering momentum, the economy is projected to further expand at the back </p><p>of improving industrial activity, especially construction and power generation, and rising demand for </p><p>allied services. Relatively lower import prices of inputs, low interest rates, and better energy supplies </p><p>are expected to boost manufacturing sector. Improved security situation would help in attracting foreign </p><p>investment thus adding on to the sustainability of growth. During 2016, SBP adopted a relatively </p><p>cautious approach and based on foregoing policy rate of 5.75 per-cent has been maintained in the </p><p>current quarter. </p><p>Financial Highlights: </p></li><li><p>First Women Bank Limited </p><p>Financial Performance </p><p>Bank has closed the bottom line in positive at profit after tax of 38.85 million. However, gross markup </p><p>income decreased by around Rs. 300 million or 25%, mainly on account of decline in policy rate. Non-</p><p>markup income also decreased in comparison with the corresponding period last year due to one off </p><p>capital gain transaction on sale of government securities transferred from HTM to AFS portfolio last </p><p>year. Due to cost efficient measures of management, administrative expenses remained controlled and </p><p>within the budget. </p><p>Asset base of the bank has decreased from Rs. 21.35 billion to Rs. 19.88 billion mainly on account of </p><p>decrease in investments by 2.7 billion i.e. 24%. Deposit base has been maintained on the same level as </p><p>compared to the December 2015. To support the financial performance of the Bank the borrowing </p><p>activities have been managed to address the short term liquidity needs and in line with the asset base of </p><p>the Bank, borrowings have been curtailed by 2.08 billion. Advances portfolio has shown a little growth of </p><p>around 853 million mainly on account of commodity finance amounting to Rs. 611 million and significant </p><p>growth in consumer portfolio has been witnessed from 13.6 million to 74.3 million in comparison with </p><p>December 31, 2015. Non-performing loan portfolio (NPLs) has increased by Rs. 286 million i.e. by </p><p>15.11%, however, specific provision during the period ended 30 September 2016 decreased by Rs. 36.63 </p><p>million i.e. 2.87% due to FSV benefit available. </p><p>Minimum Capital Requirements </p><p>Minimum Capital Requirements (MCR) has been reset for the Bank by SBP, upon recommendation from </p><p>Government of Pakistan (GoP), as disclosed in note 1.2 to the financial statements. Under the revised </p><p>requirements, the Bank is required to maintain paid-up capital (net of losses) of Rs. 3 billion and Capital </p><p>Adequacy Ratio (CAR) of 18% at all times. </p><p>The paid up capital (free of losses) of the Bank as at 30 September 2016 stood at Rs 3.02 billion. An </p><p>amount of Rs. 500 million is allocated in the Federal Budget 2016-17 for injection of equity in the Bank, </p><p>out of which no amount has been released yet. Management of the Bank is rigorously taking up the </p><p>matter with the ministry for release of funds on urgent basis. Extension granted to the Bank for meeting </p><p>the minimum capital requirement has been expired on 30 June 2016. </p><p>Government of Pakistan shareholding through Ministry of Finance now stands at 80.16%. </p><p>Credit Rating </p><p>The long term entity rating of the Bank has been upgraded to A- from BBB+ while the short-term </p><p>entity rating is A2. Banks rating denotes that there is currently a low expectation of credit risk and </p><p>indicate a strong capacity for timely payment of financial commitments. </p><p>Gender Equity Program Grant </p><p>First Women Bank has been awarded a grant of Rs. 27.5 Million under the Gender Equity Program by </p><p>United States Agency for International Development (USAID) through Aurat Foundation. </p><p>The grant is purely for the purpose of supporting a specific piece of research &amp; particular development </p><p>for the financial inclusion of women of Pakistan. The grant would be used for Market Research and </p><p>Product development, Soft skills training including leadership training and customer service training for </p><p>the Senior Management &amp; front line staff, marketing and publications. </p><p>This grant will result in improving the quality of services and would help to design research based </p><p>products for the niche market and hence increasing the outreach. </p></li><li><p>First Women Bank Limited </p><p>National Financial Inclusion Strategy </p><p>FWBL aims to support women's financial inclusion by taking a holistic and integrated approach and </p><p>undertaking research and developing products &amp; services based on needs of un-served women markets. </p><p>Further, it is also planned to participate in schemes of Government aimed to Economic Empowerment of </p><p>women at all three MACRO, MEZZO and MICRO levels. We aim to build tie ups with organization that </p><p>are providing financial assistance to low income groups to facilitate and promote SME sector by focusing </p><p>particularly on S of SME. Management is also planning to develop variety of affordable products for the </p><p>end users that enhance economic activity &amp; financial inclusion and identify women target markets and </p><p>clusters which are financially excluded. Even if we aim to target 1% of the total Financial Inclusion target </p><p>for Pakistan, we would be undertaking a paradigm shift in our existing product mix structures and </p><p>services mix for the end user. We aim to utilize the GEP project as corner stone in the foundation to </p><p>achieve the National Financial Inclusion target. </p><p>Change in the Directors </p><p>During the period ended 30 September 2016, there have been following changes in the Board of </p><p>Directors; </p><p> Mr. Gholam Kazim Hosein has joined the board as independent director on February 29, 2016. </p><p> Ms Rukhsana Shah has joined the board as independent director on February 29, 2016. </p><p> Ms Huma Baqai has joined the board as independent director on March 28, 2016. </p><p> Mr. Malik Abdul Waheed (Nominee MCB) has resigned from board on May 10, 2016. In his </p><p>place Mr. Muhtashim Ahmed Ashai has joined the board as Nominee Director MCB on August </p><p>15, 2016. </p><p> Mr. Asif Saeed Sindhu (Nominee UBL) has resigned from board on May 17, 2016. </p><p>Looking Ahead </p><p>It is our objective to actively contribute to the development of the economy that is seeking its true </p><p>potential. Focus on women empowerment through alliances and linkages with different women </p><p>oriented forums is also the main pillar of the long term strategy of the Bank. </p><p>Appreciation and Acknowledgment </p><p>On behalf of the Board, I wish to place on record their sincere gratitude to the Government of Pakistan, </p><p>Ministry of Finance, State Bank of Pakistan and Securities &amp; Exchange Commission of Pakistan for their </p><p>support and continued guidance. We also like to thank our outgoing Directors for the support and </p><p>insights they had shared to allow us to move ahead and improve the overall governance structure of the </p><p>bank. </p><p>For and on behalf of the Board of Directors </p><p>Tahira Raza </p><p>President and Chief Executive </p><p>Karachi </p><p>Date: 28 October 2016 </p></li><li><p>First Women Bank LimitedCondensed Interim Statement of Financial PositionAs at 30 September 2016</p><p>Note 30 September</p><p>2016</p><p>31 December </p><p>2015</p><p>(Un-audited) (Audited)</p><p>(Rupees in '000)</p><p>Assets</p><p>Cash and balances with treasury banks 1,264,690 1,066,852 </p><p>Balances with other banks 120,182 170,453 </p><p>Lendings to financial institutions 6 200,000 - </p><p>Investments - net 7 8,370,255 11,067,137 </p><p>Advances - net 8 8,823,655 7,970,275 </p><p>Operating fixed assets 9 302,522 337,357 </p><p>Deferred tax assets - net 10 346,165 263,579 </p><p>Other assets - net 449,617 470,969 </p><p>19,877,086 21,346,622 Liabilities</p><p>Bills payable 176,168 103,166 </p><p>Borrowings 11 752,745 2,832,357 </p><p>Deposits and other accounts 12 15,191,592 15,163,440 </p><p>Sub-ordinated loan - </p><p>Liabilities against assets subject to finance lease - </p><p>Deferred tax liabilities - net - </p><p>Other liabilities 300,564 414,495 </p><p>16,421,069 18,513,458 </p><p>Net assets 3,456,017 2,833,164 </p><p>Represented by</p><p>Share capital 3,494,113 2,894,113 </p><p>Reserves 320,118 294,768 </p><p>Accumulated loss (473,858) (489,622) </p><p>3,340,373 2,699,259 </p><p>Surplus on revaluation of assets - net of tax 13 115,644 133,905 </p><p>3,456,017 2,833,164 </p><p>14</p><p>The annexed notes 1 to 19 form an integral part of this condensed interim financial information.</p><p>Faisal Jan Sarhindi Tahira Raza</p><p> Chief Financial Officer President and</p><p>Chief Executive</p><p>Tahira Raza Mudassir H. Khan Naheed Ishaq Gholam Kazim Hosein</p><p>President and Director Director Director</p><p>Chief Executive</p><p>Contingencies and commitments</p></li><li><p>First Women Bank LimitedCondensed Interim Profit and Loss Account (Un-audited)For the Nine Months period and quarter ended 30 September 2016</p><p>30 September </p><p>2016</p><p>30 September </p><p>2015</p><p>30 September </p><p>2016</p><p>30 September </p><p>2015</p><p>Mark-up / return / interest earned 887,685 1,187,645 273,993 354,711 </p><p>Mark-up / return / interest expensed (435,722) (632,133) (133,816) (195,617) </p><p>Net mark-up / return / interest income 451,963 555,512 140,177 159,094 </p><p>Reversal against/ (provision) for non-performing loans and advances - net 35,143 (193,351) 31,812 (227,613) </p><p>Reversal against diminution in the value of investments - 52 - - </p><p>Bad debts written off directly - - - - </p><p>35,143 (193,299) 31,812 (227,613) </p><p>Net mark-up / interest income after provisions 487,106 362,213 171,989 (68,519) </p><p>Non-mark-up / interest income</p><p>Fee, commission and brokerage income 39,879 28,827 14,447 11,096 </p><p>Dividend income 8,530 15,222 4,290 - </p><p>Income / (loss) from dealing in foreign currencies 11,786 (4,103) 3,296 (2,679) </p><p>Gain on sale / redemption of securities - net 62,194 299,102 12,215 206 </p><p>Unrealized (loss) / gain on revaluation of investments</p><p> classified as held for trading (1,560) - 126 - </p><p>Other income 25,598 19,746 8,884 6,432 </p><p>Total non-mark-up / interest income 146,427 358,794 43,258 15,055 </p><p>633,533 721,007 215,247 (53,464) </p><p>Non-mark-up / interest expenses</p><p>Administrative expenses (633,661) (612,732) (210,053) (206,457) </p><p>Other provisions / write off (3,937) (2,097) 74 (2,050) </p><p>Other charges (22,067) (7,490) (200) (133) </p><p>Total non-mark-up / interest expenses (659,665) (622,319) (210,179) (208,640) </p><p>Extra ordinary / unusual item - - - - </p><p>Profit / (loss) before taxation (26,132) 98,688 5,068 (262,104) </p><p>Taxation - current year (10,237) (15,461) (3,136) (3,587) </p><p>- prior years - - - </p><p>- deferred 75,219 35,588 2,441 95,640 </p><p>64,982 20,127 (695) 92,053 </p><p>Profit / (loss) after taxation 38,850 118,815 4,373 (170,051) </p><p>Accumulated loss brought forward (489,622) (552,114) (471,216) (261,739) </p><p>Transferred to statutory reserve (25,350) - (7,770) - </p><p>Transfer from surplus on revaluation of operating fixed</p><p>assets - net of tax 2,264 2,264 755 755 </p><p>(512,708) (549,850) (478,231) (260,984) </p><p>Accumulated loss carried forward (473,858) (431,035) (473,858) (431,035) </p><p>Basic and diluted earnings per share - after tax 0.11 0.48 0.01 0.68 </p><p>The annexed notes 1 to 19 form an integral part of this condensed interim financial information.</p><p>Faisal Jan Sarhindi Tahira Raza</p><p> Chief Financial Officer President and</p><p>Chief Executive</p><p>Tahira Raza Naheed Ishaq Gholam Kazim Hosein</p><p>President and Director Director</p><p>Chief Executive</p><p>Nine months period ended Quarter ended</p><p> --------------------(Rupees in '000) --------------------</p><p>Director</p><p>Mudassir H. Khan</p></li><li><p>First Women Bank LimitedCondensed Interim Statement of Comprehensive Income (Un-audited)For the Nine Months period and quarter ended 30 September 2016</p><p>30 September</p><p> 2016</p><p>30 September </p><p>2015</p><p>30 September</p><p> 2016</p><p>30 September </p><p>2015</p><p>Profit / (loss) after tax for the period 38,850 118,815 4,373 (170,051) </p><p>Other comprehensive income</p><p>Components of comprehensive income not reflected in equity </p><p>Net change in fair value of available-for-sale securities (21,045) 279,588 756 (7,437) </p><p>Related deferred tax 7,366 (100,597) (264) 2,477 </p><p>(13,679) 178,991 492 (4,960) </p><p>Total comprehensive income for the period 25,171 297,806 4,865 (175,011) </p><p>The annexed notes 1 to 19 form an integral part of this condensed interim financial information.</p><p>Nine months period ended Quarter ended</p><p> --------------------(Rupees in '000) --------------------</p><p>Faisal Jan Sarhindi Tahira Raza</p><p> Chief Financial Officer President and</p><p>Chief Executive</p><p>Tahira Raza Mudassir H. Khan Naheed Ishaq Gholam Kazim Hosein</p><p>President and Director Director Director</p><p>Chief Executive</p></li><li><p>First Women Bank LimitedCondensed Interim Cash...</p></li></ul>

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