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Banking Survey 2015 Commercial Banks Operating in Pakistan

Banking Survey 2015 This survey has been prepared by KPMG Taseer Hadi & Co. and summarizes the performance of selected commercial banks in Pakistan for the year ended 31 December 2015.

Banking sector in Pakistan has been divided in four categories for the purpose of this survey to facilitate comparison of peer groups:

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

II. Medium size Banks: Total assets in excess of Rs. 150 billion but lessthan Rs. 700 billion.

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

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

“Islamic Banks” have been presented as a separate category and included in their respective category of Medium and Small Banks based on total assets threshold.

Further, summarized financial information of “Islamic Banking Branches of Conventional Banks” has also been presented to have an idea about size of Islamic Banking in Pakistan.

The information contained in this survey has been obtained from the published consolidated financial statements of the banks, statistical bulletins published by State Bank of Pakistan (SBP) and information published in business magazines and newspapers. Where consolidated financial statements were required and were not available, standalone financial statements have been used.

Reference should be made to the published financial statements of the banks and definitions included in this survey to enhance the understanding of ratios and analysis of performance of a particular bank.

The financial statements of Bank of Punjab and BankIslami Pakistan Limited were not published till the date of our publication, and accordingly not included in this survey.

Comparative figures of 2014 as reported in our Banking Survey 2014 have been updated to correspond with comparative figures reported in 2015 financial statements.

We have tried to provide relevant financial analysis of the banks which we thought would be useful for benchmarking and comparison. However, we welcome any comments, which would facilitate in improving the contents of this survey. The comments may be sent on [email protected]

Karachi: 27 April 2016

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

At a Glance ...................................................................................................... 1

Summary of Financial Information .................................................................. 7

Profitability ..................................................................................................... 13

Spread ........................................................................................................... 15

Non-Funded Income ..................................................................................... 19

Staff Costs ..................................................................................................... 21 Loans and Advances ..................................................................................... 23

Liquidity (Average Advances to Average Deposits) ..................................... 29

Deposits ........................................................................................................ 33

Credit Ratings ................................................................................................ 39

Number of Branches and Legend ................................................................. 41 Definitions ...................................................................................................... 43

Contents


Banking Survey 2015 1


Large Banks

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

RankingBy total assets 1 1 2 2 3 3 4 4 5 5 6 6By net assets 1 2 2 1 3 3 4 4 5 5 7 7By profit before tax 1 1 4 4 2 3 3 2 5 5 7 8

Profit before tax 60,286 48,250 34,172 23,136 43,447 35,616 42,789 37,354 25,776 22,433 12,657 8,677 (Rupees in millions)

Net Interest Margin 2.8% 2.7% 2.5% 1.5% 3.5% 3.0% 4.0% 3.3% 3.1% 2.3% 2.4% 1.5%

Spread 4.4 5.0 5.4 5.6 4.4 4.7 5.1 5.9 4.3 5.7 4.7 5.5

Return on Average Equity 19.9% 20.2% 11.3% 9.4% 18.4% 19.3% 18.0% 19.7% 17.8% 20.5% 15.1% 14.9%

Return on Average Assets 1.7% 1.8% 1.2% 1.1% 2.0% 2.1% 2.6% 2.8% 1.7% 1.9% 0.9% 0.9%

Operating Cost to Net 63.9% 62.0% 83.4% 97.7% 60.7% 69.7% 48.6% 50.6% 52.8% 62.8% 79.6% 94.9%Interest Income Ratio

Net provision / (reversal) 4,508 1,234 9,945 9,303 3,823 1,336 545 (1,941) 1,586 1,220 2,288 1,572 (Rupees in millions)

Impairment cover 14.4 40.1 4.4 3.5 12.4 27.7 79.4 - 17.3 19.4 6.5 6.5(Times)

Non Performing Advances 10.9% 12.0% 18.5% 16.6% 9.1% 11.1% 6.1% 6.8% 6.4% 7.0% 5.4% 6.4%to gross loans

Total Assets 2,218,423 1,864,618 1,711,874 1,549,659 1,486,187 1,182,453 1,020,980 941,606 992,739 843,098 903,416 743,959 (Rupees in millions)

Net Assets 182,620 169,595 171,655 182,593 155,599 137,505 142,177 136,269 90,125 81,565 54,093 45,568 (Rupees in millions)

Capital Adequacy Ratio 17.0% 16.2% 18.4% 18.2% 14.7% 14.3% 20.1% 20.4% 21.0% 19.9% 13.6% 12.7%

CASA 82.8% 77.9% 73.1% 72.8% 69.7% 70.2% 92.2% 90.2% 72.1% 73.9% 75.5% 72.0%

EPS 23.93 21.56 9.44 7.56 21.36 19.32 22.38 22.15 13.37 13.28 4.72 4.18

Market Price 200.12 216.26 54.04 69.46 154.95 176.71 216.85 305.65 94.26 113.58 28.82 34.88

Market Capitalization 293,546 317,221 114,971 147,777 189,687 216,325 241,361 340,198 107,935 130,057 45,818 55,363 (Rupees in million)

BAFNBPHBL UBL MCB ABL

At a Glance

2 Banking Survey 2015


Medium Size Banks

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014


Profit before tax 12,266 10,003 8,337 5,869 8,451 6,899 12,565 7,336 15,565 15,368 6,920 3,552 (Rupees in millions)

Net Interest Margin 2.8% 2.1% 2.3% 1.8% 2.8% 2.1% 1.9% 1.2% 4.1% 3.5% 2.6% 2.7%

Spread 3.7 3.8 4.0 5.1 3.8 3.8 2.6 2.7 7.8 8.2 5.6 6.5

Return on Average Equity 20.6% 22.0% 19.4% 19.0% 20.0% 21.4% 21.4% 15.8% 15.1% 16.5% 14.9% 10.2%

Return on Average Assets 1.2% 1.2% 1.0% 1.0% 1.0% 1.2% 1.7% 1.4% 2.2% 2.4% 1.0% 0.7%


Net provision / (reversal) 1,965 558 879 322 563 467 2,226 1,779 1,555 483 1,393 2,359 (Rupees in millions)

Impairment cover 7.2 18.9 10.5 19.2 16.0 15.8 6.6 5.1 11.0 32.8 6.0 2.5(Times)


Total Assets 640,024 579,310 536,189 447,612 531,850 437,510 489,886 397,675 455,992 419,723 430,073 388,126 (Rupees in millions)



CASA 76.1% 76.0% 78.8% 75.6% 71.5% 71.2% 55.9% 57.7% 92.0% 92.0% 66.9% 64.2%

EPS 6.60 5.79 3.92 3.25 5.01 4.56 7.32 4.72 2.39 2.49 3.52 2.06

Market Price 41.60 48.55 21.74 23.07 45.75 47.00 30.47 37.30 21.90 23.60 15.43 18.20

Market Capitalization 46,235 53,960 27,398 29,074 45,875 47,129 31,927 39,084 84,788 91,369 18,512 18,988 (Rupees in million)

FaysalHMBMeezanBAH SCBAskari



2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 2014


Profit before tax 3,596 2,442 4,029 (108) 3,768 2,589 693 36 712 926 2,959 1,901 (Rupees in millions)

Net Interest Margin 2.6% 2.4% 1.7% 1.7% 2.2% 1.9% 1.6% 1.3% 2.9% -1.7% 2.0% 1.8%

Spread 2.9 3.4 3.8 4.6 3.5 4.7 3.8 4.4 3.9 5.4 3.4 2.5

Return on Average Equity 12.6% 10.4% 14.6% -3.8% 14.0% 13.8% 2.0% 3.1% 5.6% 8.3% 11.6% 9.5%

Return on Average Assets 0.9% 0.8% 1.2% -0.3% 1.2% 1.3% 0.1% 0.2% 0.3% 0.7% 1.3% 1.1%


Net provision / (reversal) 1,029 549 386 1,527 718 421 1,575 563 187 292 581 235 (Rupees in millions)

Impairment cover 4.5 5.4 11.4 0.9 6.2 7.2 1.4 1.1 4.8 4.2 6.1 9.1(Times)


Total Assets 253,342 213,175 245,043 194,995 220,807 179,381 188,366 148,444 157,093 101,553 155,159 126,106 (Rupees in millions)



CASA 67.9% 66.1% 69.4% 73.0% 51.4% 53.0% 70.7% 70.0% 63.4% 64.1% 56.9% 62.8%

EPS 2.01 1.44 0.25 (0.07) 1.95 1.35 0.16 0.16 0.62 0.86 1.79 1.31

Market Price 15.13 12.33 1.90 2.32 7.75 7.14 3.93 4.45 - - 11.26 9.85

Market Capitalization 16,680 13,593 19,575 23,903 8,312 7,657 4,236 4,797 - - 11,263 9,852 (Rupees in million)

NIBSoneri Summit BOKJS DIB



Small Banks

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014

RankingBy total assets 19 23 20 19 21 18 22 22 23 21By net assets 23 25 18 21 17 17 21 20 24 23By profit before tax 18 18 27 23 19 17 13 12 24 22

Profit before tax 2,821 1,405 (1,839) 131 2,075 1,612 5,659 4,603 406 217 (Rupees in millions)

Net Interest Margin 4.3% 4.8% 2.5% 3.7% 2.7% 2.1% 3.9% 3.7% 3.0% 2.0%

Spread 4.3 4.2 6.1 6.9 4.1 5.9 4.1 2.1 4.1 4.1

Return on Average Equity 32.6% 22.3% -14.8% 1.1% 8.6% 8.5% 33.9% 32.4% 3.9% 2.5%

Return on Average Assets 1.6% 1.3% -1.5% 0.1% 1.0% 1.1% 4.2% 4.4% 0.3% 0.2%

Operating Cost to Net 23.9% 25.9% 197.1% 135.3% 75.4% 80.4% 51.6% 44.9% 115.1% 119.6%Interest Income Ratio

Net provision / (reversal) - - 724 368 2,520 19 (175) (129) (125) 85 (Rupees in millions)

Impairment cover - - - 1.4 1.8 85.5 - - - 3.5(Times)

Non Performing Advances - - 12.7% 12.8% 0.6% 0.8% 12.6% 10.8% 8.0% 8.4%to gross loans

Total Assets 140,254 75,950 133,137 102,736 128,104 124,871 88,643 81,254 86,933 94,349 (Rupees in Millions)

Net Assets 6,399 4,508 14,577 8,501 14,774 14,102 10,767 10,534 6,273 5,901 (Rupees in Millions)

Capital Adequacy Ratio 13.1% 14.7% 13.8% 9.1% 20.4% 22.6% 31.6% 28.9% 14.5% 14.2%

CASA 84.6% 59.0% 53.7% 54.9% 63.7% 66.9% 72.3% 78.0% 74.2% 61.1%

EPS - - (0.58) 0.03 1.25 1.23 - - 0.27 0.16

Market Price - - 1.82 2.22 - - - - - -

Market Capitalization - - 14,196 5,931 - - - - - - (Rupees in million)

AlbarakaCitibankSindhSilkICBC



2015 2014 2015 2014 2015 2014 2015 2014

RankingBy total assets 24 24 25 26 26 25 27 27By net assets 20 19 27 27 25 24 26 26By profit before tax 21 21 26 27 20 20 25 24

Profit before tax 815 425 35 (666) 1,656 910 63 69 (Rupees in millions)

Net Interest Margin 2.2% 2.0% 2.4% 2.5% 4.4% 3.6% 1.1% 2.1%

Spread 2.3 2.8 4.5 4.6 5.3 6.5 1.1 3.6

Return on Average Equity 3.7% 2.1% 2.1% -26.0% 18.4% 11.3% 1.2% 0.7%

Return on Average Assets 0.7% 0.5% 0.3% -2.5% 4.7% 2.4% 0.5% 0.3%

Operating Cost to Net 98.5% 94.0% 121.4% 115.5% 112.5% 122.2% 251.6% 211.4%Interest Income Ratio

Net provision / (reversal) 22 (99) 225 644 (335) 44 - - (Rupees in millions)

Impairment cover 38.9 - 1.2 0.0 - 21.9 - - (Times)

Non Performing Advances 7.5% 9.0% 20.5% 15.0% 1.4% 4.9% - -to gross loans

Total Assets 80,166 50,581 21,347 18,787 21,114 21,708 10,823 7,845 (Rupees in millions)

Net Assets 11,844 11,255 2,833 2,212 5,900 5,163 4,018 3,832 (Rupees in millions)

Capital Adequacy ratio 30.3% 36.5% 41.2% 29.1% 26.0% 16.2% 83.7% 95.7%

CASA 54.1% 57.9% 85.8% 75.4% 76.9% 71.2% 15.8% 25.0%

EPS 0.43 0.24 0.21 (2.75) - - - -

Market Price 6.00 7.00 - - - - - -

Market Capitalization 6,049 7,058 - - - - - - (Rupees in million)

BOTSamba DBFWB



Islamic Banks

2015 2014 2015 2014 2015 2014

RankingBy total assets 1 1 2 2 3 3By net assets 1 1 2 2 3 3By profit before tax 1 1 2 2 3 3

Profit before tax 8,451 6,899 712 926 406 217 (Rupees in millions)

Net Interest Margin 2.8% 2.1% 2.9% -1.7% 3.0% 2.0%

Spread 3.8 3.8 3.9 5.4 4.1 4.1

Return on Average Equity 13.7% 21.4% 3.6% 8.3% 2.7% 2.5%

Return on Average Assets 0.7% 1.2% 0.2% 0.7% 0.2% 0.2%

Operating Cost to Net 75.7% 80.5% 108.1% 97.6% 115.1% 119.6%Interest Income Ratio

Net provision / (reversal) 563 467 187 292 (125) 85 (Rupees in millions)

Impairment cover 16.0 15.8 4.8 4.2 - 3.5 (Times)

Non Performing Advances 3.3% 3.8% 2.1% 3.9% 8.0% 8.4%to gross loans

Total Assets 531,850 437,510 157,093 101,553 86,933 94,349 (Rupees in millions)

Net Assets 26,347 23,890 7,976 7,439 6,273 5,901 (Rupees in millions)

Capital Adequacy ratio 11.0% 11.9% 11.1% 17.1% 14.5% 14.2%

CASA 71.5% 71.2% 63.4% 64.1% 74.2% 61.1%

EPS 5.01 4.56 0.62 0.86 0.27 0.16

Market Price 45.75 47.00 - - - -

Market Capitalization 45,875 47,129 - - - - (Rupees in million)

Meezan AlbarakaDIB

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



Large Banks

Assets

HBL 207,721 1,244,887 44,318 633,383 31,342 56,772 2,218,423 NBP 171,830 826,247 10,639 580,094 33,301 89,763 1,711,874 UBL 141,476 747,599 31,305 487,278 36,678 41,851 1,486,187 MCB 71,325 564,300 5,132 315,311 32,997 31,915 1,020,980 ABL 60,789 544,833 3,628 321,648 28,870 32,971 992,739 BAF 78,952 397,516 53,629 327,300 17,318 28,701 903,416

732,093 4,325,382 148,651 2,665,014 180,506 281,973 8,333,619

Rupees in million

Lendings to financial

institutions

Loans and advances - net of provisions

Operating fixed assets & intangible

assets

Other assets Total assetsInvestmentsBank Cash & bank

Liabilities and Equity

HBL 28,082 314,319 1,634,944 10,000 48,458 182,620 2,218,423 NBP 9,172 22,385 1,431,535 - 77,127 171,655 1,711,874 UBL 13,396 164,232 1,119,953 - 33,007 155,599 1,486,187 MCB 11,975 118,615 706,240 - 41,973 142,177 1,020,980 ABL 4,942 137,960 734,546 - 25,166 90,125 992,739 BAF 9,734 172,393 640,137 9,983 17,076 54,093 903,416

77,301 929,904 6,267,355 19,983 242,807 796,269 8,333,619

Rupees in million

Bank Bills payable Borrowings Deposits Subordinated loans Other liabilities Equity Total

Income Statement

HBL 78,169 4,508 36,584 110,245 49,959 60,286 25,185 35,101 358 NBP 54,387 9,945 35,104 79,546 45,374 34,172 14,096 20,076 (19,284)UBL 57,859 3,823 24,549 78,584 35,137 43,447 16,438 27,009 7,179 MCB 49,555 545 17,859 66,868 24,079 42,789 17,754 25,035 (989)ABL 36,152 1,586 10,309 44,876 19,100 25,776 10,461 15,315 1,556 BAF 28,614 2,288 9,103 35,429 22,772 12,657 5,143 7,514 4,049

304,736 22,695 133,508 415,548 196,421 219,127 89,077 130,050 (7,131)

Rupees in million

Profit before tax TaxationNet provisionSpread

Other Comprehensive

Income

Non-mark-up / Non-interest income

Operating income

Operating expensesBank Profit after

tax

Summary of Financial Information



Medium Size Banks

Assets

BAH 41,782 355,081 5,818 205,859 15,782 15,702 640,024 Askari 38,044 268,049 813 199,937 9,278 20,068 536,189 Meezan 54,861 76,910 170,474 207,569 8,057 13,979 531,850 HMB 44,454 280,911 14,445 132,647 3,125 14,304 489,886 SCB 33,782 224,632 26,970 106,595 32,091 31,922 455,992 Faysal 27,152 183,677 12,088 178,079 11,343 17,734 430,073 Soneri 18,353 108,634 3,306 112,002 4,957 6,090 253,342 NIB 11,698 96,024 1,599 110,669 3,977 21,076 245,043 JS 11,790 116,885 3,581 76,679 4,731 7,141 220,807 Summit 13,459 77,558 1,460 70,554 9,609 15,726 188,366 DIB 18,053 18,516 11,725 104,954 1,843 2,002 157,093 BOK 12,060 88,296 13,205 36,454 1,925 3,219 155,159

325,488 1,895,173 265,484 1,541,998 106,718 168,963 4,303,824

Total assets

Rupees in million

Lendings to financial

institutions



assets

Other assetsBank Cash & bank Investments


BAH 8,665 62,592 516,198 2,995 11,382 38,192 640,024 Askari 6,095 57,323 433,130 4,997 7,570 27,074 536,189 Meezan 6,560 13,610 471,821 - 13,512 26,347 531,850 HMB 6,344 31,463 403,209 - 12,008 36,862 489,886 SCB 11,401 21,784 327,121 2,500 30,028 63,158 455,992 Faysal 6,009 90,565 292,130 2,994 8,023 30,352 430,073 Soneri 2,751 39,876 185,222 3,000 4,301 18,192 253,342 NIB 2,576 85,677 130,400 4,196 4,105 18,089 245,043 JS 1,609 54,638 140,355 - 5,197 19,008 220,807 Summit 2,729 49,756 119,742 1,497 2,693 11,949 188,366 DIB 1,552 4,552 136,743 3,247 3,023 7,976 157,093 BOK 505 17,130 117,292 - 4,314 15,918 155,159

56,796 528,966 3,273,363 25,426 106,156 313,117 4,303,824


Rupees in million

Income Statement

BAH 24,835 1,965 4,486 27,356 15,090 12,266 4,934 7,332 1,167 Askari 14,906 879 6,780 20,807 12,470 8,337 3,393 4,944 624 Meezan 18,217 563 4,597 22,250 13,799 8,451 3,429 5,022 148 HMB 14,399 2,226 9,249 21,422 8,857 12,565 4,892 7,673 (865) SCB 22,767 1,555 7,117 28,328 12,763 15,565 6,134 9,431 654 Faysal 13,955 1,393 5,557 18,118 11,198 6,920 2,698 4,222 (48) Soneri 7,597 1,029 3,153 9,721 6,125 3,596 1,383 2,213 42 NIB 4,651 386 5,990 10,452 6,423 4,029 1,479 2,550 (1,378) JS 5,784 718 4,297 9,363 5,595 3,768 1,303 2,465 902 Summit 3,056 1,575 4,423 5,904 5,211 693 455 238 (151) DIB 4,634 187 1,274 5,722 5,010 712 281 431 106 BOK 4,428 581 1,799 5,647 2,688 2,959 1,169 1,790 185

139,229 13,057 58,722 185,090 105,229 79,861 31,550 48,311 1,386

Bank Spread Net provision


Operating income

Operating expenses

Profit after tax

Rupees in million

TaxationProfit before tax

Other Comprehensive

Income



Small Banks

Assets

ICBC 5,660 124,771 670 6,999 663 1,491 140,254 Silk 7,538 34,999 6,778 61,074 4,497 18,251 133,137 Sindh 6,384 69,644 1,450 44,169 1,902 4,555 128,104 Citibank 5,514 48,585 8,464 21,390 458 4,232 88,643 Albaraka 12,408 15,278 3,912 47,645 2,672 5,018 86,933 SAMBA 4,330 44,726 2,000 24,187 1,324 3,599 80,166 FWB 1,237 11,067 - 7,970 337 736 21,347 DB 6,492 - 6,422 6,560 324 1,316 21,114 BOT 4,361 - 3,741 2,589 61 71 10,823

53,924 349,070 33,437 222,583 12,238 39,269 710,521

Bank Cash & bank InvestmentsLendings to

financial institutions



assets

Other assets Total assets

Rupees in million


ICBC 267 100,082 26,949 - 6,557 6,399 140,254 Silk 2,413 33,230 81,098 - 1,819 14,577 133,137 Sindh 289 27,161 83,921 - 1,959 14,774 128,104 Citibank 1,766 7,003 61,743 - 7,364 10,767 88,643 Albaraka 884 2,108 71,644 3,757 2,267 6,273 86,933 SAMBA 492 27,326 38,844 - 1,660 11,844 80,166 FWB 103 2,832 15,163 - 416 2,833 21,347 DB 943 11 11,977 - 2,283 5,900 21,114 BOT 6 1,410 5,223 - 166 4,018 10,823

7,163 201,163 396,562 3,757 24,491 77,385 710,521

Rupees in million


Income Statement

ICBC 5,956 - (1,711) 4,245 1,424 2,821 1,046 1,775 116 Silk 3,100 724 1,894 4,270 6,109 (1,839) (128) (1,711) (41) Sindh 4,481 2,520 3,492 5,452 3,377 2,075 829 1,246 (574) Citibank 3,858 (175) 3,619 7,652 1,993 5,659 2,050 3,609 (329) Albaraka 2,478 (125) 656 3,260 2,854 406 166 240 131 SAMBA 2,143 22 805 2,926 2,111 815 385 430 159 FWB 698 225 409 882 847 35 (19) 54 168 DB 928 (335) 1,437 2,699 1,043 1,656 640 1,016 (262) BOT 81 - 185 266 203 63 17 46 141

23,723 2,856 10,786 31,652 19,961 11,691 4,986 6,705 (491)

Rupees in million

Other Comprehensive

Income

Profit / (loss) after

taxBank Spread Net provision

/ (reversal)


Operating income

Operating expenses

Profit / (loss)

before taxTaxation



Islamic Banks

Assets

Meezan 54,861 76,910 170,474 207,569 8,057 13,979 531,850 DIB 18,053 18,516 11,725 104,954 1,843 2,002 157,093 Albaraka 12,408 15,278 3,912 47,645 2,672 5,018 86,933 MCBIB 8,207 624 - 973 170 134 10,108

93,529 111,328 186,111 361,141 12,742 21,133 785,984

Rupees in million

Bank Cash & bank InvestmentsLendings to

financial institutions



assets

Other assets Total assets


Meezan 6,560 13,610 471,821 - 13,512 26,347 531,850 DIB 1,552 4,552 136,743 3,247 3,023 7,976 157,093 Albaraka 884 2,108 71,644 3,757 2,267 6,273 86,933 MCBIB - - 38 - 86 9,984 10,108

8,996 20,270 680,246 7,004 18,888 50,580 785,984


Rupees in million

Income Statement

Meezan 18,217 563 4,597 22,250 13,799 8,451 3,429 5,022 148 DIB 4,634 187 1,274 5,722 5,010 712 281 431 106 Albaraka 2,478 (125) 656 3,260 2,854 406 166 240 131 MCBIB 155 - 11 166 113 53 5 48 -

25,484 625 6,538 31,398 21,776 9,622 3,881 5,741 385


Operating income

Operating expenses

Profit before tax Taxation Profit after

tax

Other Comprehensive

IncomeBank Net provision

/ (reversal)Spread

Rupees in million

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



Islamic Banking Business of Conventional Banks

Assets

HBL 5,321 40,474 62,736 19,779 - 8,016 136,326 BAF 12,455 33,422 38,613 42,056 2,286 2,665 131,497 HMB 14,293 14,949 14,552 7,898 77 3,460 55,229 SCB 2,386 5,440 10,438 29,605 40 537 48,446 Faysal 3,103 9,960 11,924 20,287 470 338 46,082 Askari 4,848 5,873 - 20,768 536 1,333 33,358 UBL 4,860 11,856 6,691 7,070 151 2,308 32,936 BOK 5,501 3,359 11,916 10,196 249 623 31,844 BAH 1,627 5,595 - 11,981 135 244 19,582 MCB 712 3,107 2,265 10,029 2,456 52 18,621 NBP 4,987 1,168 5,819 837 62 920 13,793 Soneri 654 4,651 737 3,645 145 332 10,164 Silk 551 1,123 - 4,648 99 2,018 8,439 Summit 380 1,100 1,037 2,571 121 129 5,338 Sindh 281 1,368 650 521 95 80 2,995 ABL 136 2,241 272 140 46 79 2,914

62,095 145,686 167,650 192,031 6,968 23,134 597,564

Rupees in million

Bank Cash & bank Investments Due to financial institutions

Islamic financing and related assets

Operating fixed assets Other assets Total assets


HBL 4 103 130,640 1,275 4,304 136,326 BAF 1,429 9,985 105,407 5,304 9,372 131,497 HMB 228 966 52,067 575 1,393 55,229 SCB 147 1,459 37,959 4,144 4,737 48,446 Faysal 579 - 31,759 10,798 2,946 46,082 Askari 525 807 26,934 2,780 2,312 33,358 UBL 197 - 31,086 452 1,201 32,936 BOK 148 300 25,451 2,309 3,636 31,844 BAH 8 2,734 14,719 429 1,692 19,582 MCB 86 420 11,286 4,503 2,326 18,621 NBP 38 - 12,701 351 703 13,793 Soneri 50 240 8,998 164 712 10,164 Silk 632 - 6,605 50 1,152 8,439 Summit 24 925 3,007 168 1,214 5,338 Sindh - 131 2,320 95 449 2,995 ABL 11 19 2,335 42 507 2,914

4,106 18,089 503,274 33,439 38,656 597,564

Bank Bills payable Due to financial institutions Deposits Other liabilities Equity Total

Rupees in million



Income Statement

HBL 3,164 258 - 868 620 3,154

BAF 5,545 1,441 123 582 2,765 1,798

HMB 607 - 82 124 285 364

SCB 2,850 - 193 674 1,900 1,431

Faysal 1,544 - 42 129 1,115 516

Askari 1,078 - 42 116 1,065 87

UBL 364 - 12 54 663 (257)

BOK 1,287 - 69 214 996 436

BAH 529 - 1 72 419 181

MCB 815 - 65 634 1,017 367

NBP 503 81 (17) 69 608 (100)

Soneri 253 - (1) 29 211 72

Silk (20) - - 17 290 (293)

Summit 190 - - 26 117 99

Sindh 35 - - 14 92 (43)

ABL 61 - - 6 119 (52)

18,805 1,780 611 3,628 12,282 7,760

Rupees in million

Depreciation on assets given on

Ijarah

Bank Net spread earned

Net provision / (reversal)

Other income

Operating expenses

Profit / (loss)

before tax



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

Large Banks

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

60,286

34,172

43,447

42,789

25,776 12,657

48,250

23,136

35,616

37,354

22,433

8,677

-00

10,000

20,000

30,000

40,000

50,000

60,000

70,000

HBL

NBP

UBL

MCB

ABL

BAF

Rupe

es in

milli

ons

2015 2014

Medium Size Banks

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

12,266 8,337

8,451

12,565

15,565

6,920 3,596

4,029

3,768

693

712

2,959

10,003

5,869

6,899

7,336

15,368

3,552

2,442

(108)

2,589 36

926

1,901

(2,000) -00

2,000 4,000 6,000 8,000

10,000 12,000 14,000 16,000 18,000

BAH

Askari

Meezan

HMB

SCB

Faysal

Soneri

NIB

JS Summ

it

DIB

BOK

Rupe

es in

milli

ons

2015 2014

Profitability



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

2,821

(1,839)

2,075

5,659

406

815 35

1,656

63

1,405

131

1,612

4,603

217

425

(666)

910 69

(3,000)

(2,000)

(1,000)

-00

1,000

2,000

3,000

4,000

5,000

6,000

7,000

ICBC

Silk

Sindh

Citibank

Albaraka

SAM

BA

FWB

DB

BOT

Rup

ees

in m

illio

ns

2015 2014

Islamic Banks

8,451

712

406

6,899

926 217

-00

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Meezan

DIB

Albaraka

Rupe

es in

milli

ons

2015 2014 MCBIB financial results have not been shown due to initial years of operations.



Spread as per SBP

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

2015 2014 2013 2012 2011 In percentage

Weighted average lending rate

9.6 11.1 11.3 12.8 13.6

Weighted average deposit rate

4.1 5.0 5.1 5.8 6.0

Banking spread 5.5 6.1 6.2 7.0 7.6

Average Spread as per survey

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

Average Spread of Large Banks as per survey

Average spread of large banks in 2015 was 4.7% as compared to 5.4% in 2014.

4.4

5.4 4.4

5.1 4.3

4.7

5.0

5.6 4.7

5.9 5.7 5.5

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

2015 2014

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

Spread



Average Spread of Medium Size Banks as per survey

Average spread of medium sized banks in 2015 was 4.1% as compared to 4.6% in 2014.

3.7

4.0

3.8

2.6

7.8

5.6

2.9

3.8 3.5

3.8

3.9 3

.4

3.8

5.1

3.8

2.7

8.2

6.5

3.4

4.6

4.7 4.4

5.4

2.5

BA

H

Aska

ri

Me

ezan

HM

B

SC

B

Fa

ysal

So

neri

NIB

JS Su

mm

it

DIB

BO

K

In percentages

2015 2014

Average Spread of Small Banks as per survey

Average spread of small banks in 2015 was 4.0% as compared to 4.5% in 2014.

4.3

6.1

4.1

4.1

4.1

2.3

4.5

5.3

1.1

4.2

6.9

5.9

2.1

4.1

2.8

4.6

6.5

3.6

ICB

C

Silk

Sindh

Citibank

Albaraka

SA

MB

A

FWB

DB

BO

T

In percentages

2015 2014





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

3.8

3.9

4.13.8

5.4

4.1

Meezan

DIB

Albaraka

In percentages

2015 2014





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

Large Banks

26.3

37.6 31.3 23.9 16.2

23.3

26.0

47.1

37.3

24.7 18.5

33.2

HB

L

NB

P

UB

L

MC

B

ABL

BAF

In percentages

2015 2014

Medium Size Banks 15.0

22.5

19.9

30.0

26.8

25.3

24.6

39.1

36.5

62.6

27.2

11.7

18.2

29.1

24.9

34.2

30.9

26.7

31.3

60.0

39.5

74.6

22.7 13.6

BA

H

Askari

Meezan

HM

B

SC

B

Faysal

Soneri

NIB

JS Sum

mit

DIB

BO

K

In percentages

2015 2014

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

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

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

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

Non-Funded Income



Small Banks

(28.7)

38.7 6.9

48.1

24.9

13.9

13.3

145.8

229.0

(34.3)

33.5 7.4

41.3

27.7 9.0

9.8

135.3

186.1

ICB

C

Silk

Sindh

Citibank

Albaraka

SAM

BA

FWB

DB

BO

T

In percentages

2015 2014

Islamic Banks

19.9

27.2

24.9

24.9

22.7

27.7

Meezan

DIB

Albaraka

In percentages

2015 2014


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

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

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

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



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

Large Banks

2015 2014 2015 2014 2015 2014

HBL 24,430 21,842 15,060 14,123 1,622 1,547 NBP 29,903 28,828 25,425 25,421 1,176 1,134 UBL 18,384 16,741 15,132 13,771 1,215 1,216 MCB 11,390 10,523 12,491 12,301 912 855 ABL 10,124 9,711 10,350 10,194 978 953 BAF 10,443 9,462 10,320 10,531 1,012 898

104,674 97,107 88,778 86,341

Number of staff Cost per staff

Rupees in millions Numbers Rupees in thousand

Staff cost

Medium Size Banks

2015 2014 2015 2014 2015 2014

BAH 7,246 5,805 9,415 8,122 770 715 Askari 6,688 5,570 6,872 5,913 973 942 Meezan 6,723 5,017 8,581 7,429 783 675 HMB 4,556 3,786 4,297 3,934 1,060 962 SCB 5,934 5,617 3,860 4,400 1,537 1,277 Faysal 4,671 5,671 5,357 5,120 872 1,108 Soneri 2,519 2,282 3,676 3,524 685 648 NIB 3,090 3,172 2,759 3,096 1,120 1,025 JS 2,661 2,003 3,243 2,697 821 743 Summit 2,027 1,882 2,908 2,755 697 683 DIB 2,149 1,691 2,952 2,497 728 677 BOK 1,682 1,434 2,448 2,083 687 688

49,946 43,930 56,368 51,570

Cost per staff

Rupees in thousand

Number of staff

Numbers

Staff cost

Rupees in millions

Small Banks

2015 2014 2015 2014 2015 2014

ICBC 897 613 91 82 9,857 7,476 Silk 2,552 2,312 3,153 2,906 809 796 Sindh 1,621 1,287 1,994 1,776 813 725 Citibank 635 654 276 301 2,301 2,173 Albaraka 1,254 1,110 1,845 1,638 680 678 SAMBA 911 727 657 602 1,387 1,208 FWB 488 438 564 568 865 771 DB 486 478 105 106 4,629 4,509 BOT 90 88 55 59 1,636 1,492

8,934 7,707 8,740 8,038


Staff cost Number of staff Cost per staff

Islamic Banks

2015 2014 2015 2014 2015 2014

Meezan 6,723 5,017 8,581 7,429 783 675 DIB 2,149 1,691 2,952 2,497 728 677 Albaraka 1,254 1,110 1,845 1,638 680 678

10,126 7,818 13,378 11,564

Number of staff Cost per staffStaff cost



Staff cost includes salaries, allowances, staff retirement benefits.




Staff Costs



Remuneration of Executives Large Banks

2015 2014 2015 2014 2015 2014

HBL * 75,151 53,178 11,614,998 10,245,448 4,507 3,583 NBP 71,093 47,137 5,366,137 5,623,279 1,803 1,792 UBL * 127,305 246,520 8,138,206 7,280,128 1,947 1,784 MCB 84,696 73,684 3,581,948 3,182,059 1,216 1,026 ABL 46,299 43,276 3,783,383 3,631,007 1,319 1,314 BAF * 97,114 92,499 5,107,217 4,490,721 1,808 1,603

501,658 556,294 37,591,889 34,452,642 12,600 11,102

Rupees in thousands Numbers

Number of ExecutivesRemuneration of ExecutivesCEO Remuneration

Medium Size Banks

2015 2014 2015 2014 2015 2014

BAH 34,078 32,851 3,684,755 2,717,712 1,592 1,212 Askari 74,294 44,127 2,511,005 2,089,949 722 685 Meezan * 67,989 61,181 1,873,952 1,336,565 857 582 HMB 71,595 60,678 2,632,934 2,408,988 1,092 1,069 SCB * 69,456 51,128 3,018,453 2,657,978 1,245 1,131 Faysal * 45,079 48,816 1,789,248 1,829,160 601 637 Soneri * 64,441 59,175 1,384,443 1,152,321 626 595 NIB 51,422 133,485 1,645,813 1,889,206 780 759 JS 24,900 20,621 1,502,654 1,074,684 692 426 Summit 32,420 26,400 872,110 865,656 356 340 DIB 50,773 42,178 870,862 758,701 339 255 BOK 21,493 7,292 178,102 158,927 56 51

607,940 587,932 21,964,331 18,939,847 8,958 7,742



Small Banks

2015 2014 2015 2014 2015 2014

ICBC * 67,942 71,199 431,715 538,430 53 56 Silk 86,127 72,919 1,257,672 1,174,255 437 387 Sindh * 74,201 58,194 687,809 539,275 271 217 Citibank 69,594 72,878 430,021 533,810 123 150 Albaraka 50,865 45,256 524,401 487,250 244 221 SAMBA 61,614 51,333 498,170 419,338 184 161 FWB 28,080 20,862 183,946 156,895 96 84 DB * 45,595 40,337 230,821 212,733 63 65 BOT 16,152 16,356 37,068 33,798 18 11

500,170 449,334 4,281,623 4,095,784 1,489 1,352



Islamic Banks

2015 2014 2015 2014 2015 2014

Meezan * 67,989 61,181 1,873,952 1,336,565 857 582 DIB 50,773 42,178 870,862 758,701 339 255 Albaraka 50,865 45,256 524,401 487,250 244 221

169,627 148,615 3,269,215 2,582,516 1,440 1,058


CEO Remuneration Remuneration of Executives Number of Executives

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

Remuneration of executives






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

2015 2014 Large Banks 2.9% 8.7% Medium Size Banks 9.6% 10.9% Small Banks 2.0% 27.5% Islamic Banks 27.4% 40.0%

Growth in Loans and Advances

Large Banks

2014-15 2013-14 2015 2014 2013

HBL 6.2 4.9 702,562 661,476 630,422 NBP (5.1) 2.7 694,385 731,980 713,043 UBL 3.0 11.4 529,915 514,283 461,675 MCB 3.4 20.2 333,815 322,759 268,471 ABL 4.6 14.2 340,812 325,868 285,411 BAF 12.7 11.3 343,492 304,820 273,827

2.9 8.7 2,944,981 2,861,186 2,632,849

Rupees in millionsIn percentages

Annual increase Gross Advances

Annualised Increase (2013 – 15)

5.6

(1.3)

7.1

11.5

9.3

12.0

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

Loans and Advances



Medium Size Banks

2014-15 2013-14 2015 2014 2013

BAH 14.0 8.2 214,273 187,973 173,652 Askari 14.9 3.5 228,419 198,851 192,175 Meezan 17.7 37.3 215,776 183,286 133,475 HMB (0.4) 4.6 150,076 150,739 144,144 SCB (14.6) (10.9) 128,112 150,025 168,427 Faysal (1.0) 0.2 202,543 204,676 204,343 Soneri 4.3 10.5 120,617 115,614 104,673 NIB 14.8 12.5 135,028 117,654 104,584 JS 23.1 83.4 79,402 64,502 35,170 Summit 6.8 18.7 83,099 77,804 65,569 DIB 76.7 64.2 106,651 60,350 36,759 BOK (7.2) 12.8 40,137 43,243 38,339

9.6 10.9 1,704,133 1,554,717 1,401,310

In percentages Rupees in millions

Annual increase Gross Advances


11.1

9.0

27.1

2.0

(12.8)

(0.4)

7.3

13.6

50.3

12.6

70.3

2.3

BAH

Askari

Meezan

HMB

SCB

Faysal

Soneri

NIB

JS

Summit

DIB

BOK

In percentages



Small Banks

2014-15 2013-14 2015 2014 2013

ICBC 15.0 56.3 6,999 6,087 3,894 Silk 4.1 4.8 67,045 64,417 61,470 Sindh 13.4 55.1 46,708 41,204 26,565 Citibank (22.6) 84.9 24,460 31,621 17,099 Albaraka 1.4 26.8 50,548 49,834 39,314 SAMBA 9.8 16.3 26,260 23,916 20,562 FWB (1.6) (2.8) 9,253 9,401 9,669 DB (5.2) 51.0 6,667 7,034 4,658 BOT 14.7 28.6 2,589 2,257 1,754

2.0 27.5 240,529 235,771 184,985


Gross AdvancesAnnual increase


34.1

4.4

32.6

19.6

13.4

13.0

(2.2)

19.6

21.5

ICBC

Silk

Sindh

Citibank

Albaraka

SAMBA

FWB

DB

BOT

In percentages



Islamic Banks

2014-15 2013-14 2015 2014 2013

Meezan 17.7 37.3 215,776 183,286 133,475 DIB 76.7 64.2 106,651 60,350 36,759 Albaraka 1.4 26.8 50,548 49,834 39,314

27.1 40.0 372,975 293,470 209,548

Gross AdvancesAnnual increase



Annualized Increase (2013 – 15)

27.1

70.3

13.4

Meezan

DIB

Albaraka

In percentages



Market Share of Loans and Advances

2015 2014 2015 2014

HBL 14.4 14.2 702,562 661,476 NBP 14.2 15.7 694,385 731,980 UBL 10.8 11.1 529,915 514,283 BAF 7.0 6.6 343,492 304,820 ABL 7.0 7.0 340,812 325,868 MCB 6.8 6.9 333,815 322,759 Askari 4.7 4.3 228,419 198,851 Meezan 4.4 3.9 215,776 183,286 BAH 4.4 4.0 214,273 187,973 Faysal 4.1 4.4 202,543 204,676 HMB 3.1 3.2 150,076 150,739 Less than 3% 19.1 18.7 933,575 864,963

100 100 4,889,643 4,651,674


HBL14.4%

NBP14.2%

UBL10.8%

BAF7.0%ABL

7.0%MCB6.8%

Askari4.7%

Meezan4.4%

BAH4.4%

Faysal4.1%

HMB3.1%

Less than 3%19.1%



Banks with less than 3% market share

2015 2014 2015 2014

NIB 2.8 2.5 135,028 117,654 SCB 2.6 3.2 128,112 150,025 Soneri 2.5 2.5 120,617 115,614 DIB 2.2 1.3 106,651 60,350 Summit 1.7 1.7 83,099 77,804 JS 1.6 1.4 79,402 64,502 Silk 1.4 1.4 67,045 64,417 Albaraka 1.0 1.1 50,548 49,834 Sindh 1.0 0.9 46,708 41,204 BOK 0.8 0.9 40,137 43,243 SAMBA 0.5 0.5 26,260 23,916 Citibank 0.5 0.8 24,460 31,621 FWB 0.2 0.2 9,253 9,401 ICBC 0.1 0.1 6,999 6,087DB 0.1 0.2 6,667 7,034 BOT 0.1 0.0 2,589 2,257

19.1 18.7 933,575 864,963


NIB2.8%

SCB2.6%

Soneri2.5%

DIB2.2%

Summit1.7%

JS1.6%

Silk1.4%

Albaraka1.0%

Sindh1.0%

BOK0.8%

SAMBA0.5%

Citibank0.5%

FWB0.2%

ICBC0.1% DB

0.1% BOT0.1%



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

Large Banks

2015 2014 2013 2015 2014 2013

HBL 679,570 640,367 606,869 1,634,944 1,524,645 1,401,230 NBP 686,549 721,785 701,312 1,431,535 1,234,405 1,101,845 UBL 508,252 493,346 444,425 1,119,953 951,902 889,526 MCB 317,491 306,757 254,814 706,240 688,270 632,309 ABL 325,201 307,458 270,482 734,546 667,864 608,407 BAF 326,062 290,143 261,308 640,137 605,957 525,526

2,843,125 2,759,856 2,539,210 6,267,355 5,673,043 5,158,843

Advances* Deposits

Rupees in millions

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

41.8

52.8

48.3

44.8

45.1

49.542.6

60.9 50.9 42.5

45.3

48.7

HB

L

NB

P

UB

L

MC

B

ABL

BAF

In percentages

2015 2014

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

Liquidity (Average Advances to Average Deposits)



Medium Size Banks

2015 2014 2013 2015 2014 2013

BAH 191,159 166,500 155,084 516,198 446,311 386,099 Askari 218,092 190,897 183,222 433,130 387,535 335,173 Meezan 202,177 172,520 124,086 471,821 380,422 289,811 HMB 127,359 131,675 123,531 403,209 319,948 247,508 SCB 112,225 136,700 151,957 327,121 304,306 296,377 Faysal 186,735 186,236 185,176 292,130 283,346 271,134 Soneri 110,998 93,851 96,726 185,222 163,250 140,580 NIB 120,891 103,535 91,763 130,400 105,103 104,888 JS 74,156 60,844 33,194 140,355 107,430 80,055 Summit 77,801 72,809 61,356 119,742 105,222 106,256 DIB 102,099 57,641 34,821 136,743 83,844 67,639 BOK 38,545 41,642 36,845 117,292 92,264 77,218

1,562,237 1,414,850 1,277,761 3,273,363 2,778,981 2,402,738

Rupees in millions

DepositsAdvances*

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

37.2

49.8

44.0

35.8

39.4

64.8

58.8

95.3

54.5

66.9

72.4

38.3

38.6

51.8

44.3

45.0

48.1

67.0

62.7

93.0

50.2

63.4

61.0 46.3

BA

H

Askari

Meezan

HM

B

SC

B

Faysa

l

Son

eri

NIB

JS Sum

mit

DIB

BO

K

In percentages

2015 2014




Small Banks

2015 2014 2013 2015 2014 2013

ICBC 6,999 6,087 3,894 26,949 9,501 14,987 Silk 64,946 61,217 58,060 81,098 68,770 69,433 Sindh 45,136 6,956 19,185 83,921 61,884 45,756 Citibank 24,460 31,621 17,099 61,743 48,144 40,936 Albaraka 48,483 47,844 37,112 71,644 80,223 75,647 SAMBA 24,303 20,785 18,090 38,844 31,642 24,633 FWB 9,201 9,335 9,620 15,163 13,449 18,338 DB 6,667 6,804 4,228 11,977 12,664 15,849 BOT 2,589 2,257 1,754 5,223 3,271 4,051

232,784 192,906 169,042 396,562 329,548 309,630

Rupees in millions

Advances* Deposits


35.9

84.2

35.7

51.0

63.4

64.0

64.8 54.7

57.1

40.8

86.3

24.3

54.7

54.5

69.1 59.6

38.7

54.8

ICBC

Silk

Sindh

Citibank

Albaraka

SAM

BA

FWB

DB

BOT

In percentages

2015 2014




Islamic Banks

2015 2014 2013 2015 2014 2013

Meezan 202,177 172,520 124,086 471,821 380,422 289,811 DIB 102,099 57,641 34,821 136,743 83,844 67,639 Albaraka 48,483 47,844 37,112 71,644 80,223 75,647

352,759 278,005 196,019 680,208 544,489 433,097

Advances* Deposits

Rupees in millions



44.0

72.4 63.4

44.3

61.0 54.5

Meezan

DIB

Albaraka

In percentages

2015 2014




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

Growth in Deposits

Large Banks

2014-15 2013-14 2015 2014 2013

HBL 7.2 8.8 1,634,944 1,524,645 1,401,230 NBP 16.0 12.0 1,431,535 1,234,405 1,101,845 UBL 17.7 7.0 1,119,953 951,902 889,526 MCB 2.6 8.9 706,240 688,270 632,309 ABL 10.0 9.8 734,546 667,864 608,407 BAF 5.6 15.3 640,137 605,957 525,526

10.5 10.0 6,267,355 5,673,043 5,158,843


Annual Increase Deposits


8.0

14.0

12.2

5.7

9.9

10.4

HBL

NBP

UBL

MCB

ABL

BAF

In percentages

Deposits



Medium Size Banks

2014-15 2013-14 2015 2014 2013

BAH 15.7 15.6 516,198 446,311 386,099 Askari 11.8 15.6 433,130 387,535 335,173 Meezan 24.0 31.3 471,821 380,422 289,811 HMB 26.0 29.3 403,209 319,948 247,508 SCB 7.5 2.7 327,121 304,306 296,377 Faysal 3.1 4.5 292,130 283,346 271,134 Soneri 13.5 16.1 185,222 163,250 140,580 NIB 24.1 0.2 130,400 105,103 104,888 JS 30.6 34.2 140,355 107,430 80,055 Summit 13.8 (1.0) 119,742 105,222 106,256 DIB 63.1 24.0 136,743 83,844 67,639 BOK 27.1 19.5 117,292 92,264 77,218

17.8 15.7 3,273,363 2,778,981 2,402,738


Annual Increase Deposits


15.6

13.7

27.6

27.6

5.1

3.8

14.8

11.5

32.4

6.2

42.2

23.2

BAH

Askari

Meezan

HMB

SCB

Faysal

Soneri

NIB

JS

Summit

DIB

BOK

In percentages



Small Banks

2014-15 2013-14 2015 2014 2013

ICBC 183.7 (36.6) 26,949 9,501 14,987 Silk 17.9 (1.0) 81,098 68,770 69,433 Sindh 35.6 35.2 83,921 61,884 45,756 Citibank 28.2 17.6 61,743 48,144 40,936 Albaraka (10.7) 6.0 71,644 80,223 75,647 SAMBA 22.8 28.5 38,844 31,642 24,633 FWB 12.7 (26.7) 15,163 13,449 18,338 DB (5.4) (20.1) 11,977 12,664 15,849 BOT 59.7 (19.2) 5,223 3,271 4,051

20.3 6.4 396,562 329,548 309,630


DepositsAnnual Increase


34.1

8.1

35.4

22.8

(2.7)

25.6

(9.1)

(13.1)

13.6

ICBC

Silk

Sindh

Citibank

Albaraka

SAMBA

FWB

DB

BOT

In percentages



Islamic Banks

2014-15 2013-14 2015 2014 2013

Meezan 24.0 31.3 471,821 380,422 289,811 DIB 63.1 24.0 136,743 83,844 67,639 Albaraka (10.7) 6.0 71,644 80,223 75,647

24.9 25.7 680,208 544,489 433,097


DepositsAnnual Increase



27.6

42.2

(2.7)

Meezan

DIB

Albaraka

In percentages



Market Share of Customer Deposits

2015 2014 2015 2014

HBL 17.0 17.7 1,602,971 1,490,747 NBP 13.0 12.7 1,228,365 1,064,953 UBL 11.3 11.1 1,067,395 930,129 ABL 7.4 7.7 700,752 648,668 MCB 7.3 8.0 688,913 675,990 BAF 6.3 6.8 589,565 571,821 BAH 5.4 5.2 503,693 436,653 Meezan 4.9 4.5 465,674 375,670 Askari 4.5 4.6 428,002 386,638 HMB 4.1 3.7 389,858 312,808 SCB 3.4 3.6 320,620 302,584 Faysal 3.0 3.2 279,583 272,935 Less than 3% 12.4 11.2 1,149,170 942,354

100 100 9,414,561 8,411,950


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

HBL17.0%

NBP13.0%

UBL11.3%

ABL7.4%MCB

7.3%

BAF6.3%

BAH5.4%

Meezan4.9%

Askari4.5%

HMB4.1%

SCB3.4%

Faysal3.0%

Less than 3%12.4%



Banks with less than 3% market share

2015 2014 2015 2014

Soneri 1.8 1.9 171,171 159,240 JS 1.4 1.2 130,640 99,908 DIB 1.3 1.0 126,517 83,684 BOK 1.2 1.1 117,265 92,125 Summit 1.2 1.2 112,951 97,248 NIB 1.2 1.2 110,587 99,385 Sindh 0.9 0.7 80,937 59,281 Silk 0.9 0.8 77,682 65,900 Albaraka 0.7 0.8 67,560 70,035 Citibank 0.6 0.6 60,251 46,862 SAMBA 0.4 0.4 34,334 29,976 ICBC 0.3 0.1 26,929 9,444 FWB 0.2 0.2 15,162 13,347 DB 0.2 0.2 11,974 12,654 BOT 0.1 0.0 5,210 3,266

12.4 11.2 1,149,170 942,354


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

Soneri1.8%

JS1.4%

DIB1.3%

BOK1.2%Summit

1.2%

NIB1.2%

Sindh0.9%

Silk0.9%

Albaraka0.7%

Citibank0.6%

SAMBA0.4%

ICBC0.3%

FWB0.2%

DB0.2%

BOT0.1%



Large Banks

Banks Rating Agency

Credit Rating Assigned

Short Term

Long Term

Habib Bank Limited JCR-VIS A-1+ AAA

National Bank of Pakistan PACRA A1+ AAA

JCR-VIS A-1+ AAA

United Bank Limited JCR-VIS A-1+ AA+

MCB Bank Limited PACRA A1+ AAA

Allied Bank Limited PACRA A1+ AA+

Bank Alfalah Limited PACRA A1+ AA

Medium Size Banks

Banks Rating Agency


Short Term

Long Term

Bank Al-Habib Limited PACRA A1+ AA+

Askari Bank Limited JCR-VIS A-1+ AA

Meezan Bank Limited JCR-VIS A-1+ AA

The Bank of Punjab PACRA A1+ AA-

Habib Metropolitan Bank Limited PACRA A1+ AA+

Standard Chartered Bank (Pakistan) Limited PACRA A1+ AAA

Faysal Bank Limited PACRA A1+ AA

JCR-VIS A-1+ AA

Soneri Bank Limited PACRA A1+ AA-

NIB Bank Limited PACRA A1+ AA-

JS Bank Limited PACRA A1+ A+

Summit Bank Limited JCR-VIS A-1 A

Dubai Islamic Bank (Pakistan) Limited JCR-VIS A-1 A+

The Bank of Khyber PACRA A1 A

JCR-VIS A-1 A

Credit Ratings



Small Banks

Banks Rating Agency


Short Term

Long Term

Industrial and Commercial Bank of China Limited (Pakistan Branches) Moody’s P-1 A1

Silkbank Limited JCR-VIS A-2 A-

Sindh Bank Limited JCR-VIS A-1+ AA

Citibank N.A. (Pakistan Branches) Moody’s P-1 A2

Albaraka Bank (Pakistan) Limited PACRA A1 A

JCR-VIS A-1 A

Samba Bank Limited JCR-VIS A-1 AA

First Women Bank Limited PACRA A2 BBB+

Deutsche Bank AG (Pakistan Branches)

Standard & Poor's A-2 BBB+

Moody’s P-2 A3

Fitch F1 A-

The Bank of Tokyo Mitsubishi UFJ, Limited – Karachi Branch

Standard & Poor’s A-1 A+

Moody’s P-1* A1

Fitch F1 A

* Deposit Rating only



Large Banks

Banks Legend Number of Branches *

2015 2014 Habib Bank Limited HBL 1,716 1,644 National Bank of Pakistan NBP 1,424 1,377 United Bank Limited UBL 1,330 1,313 MCB Bank Limited MCB 1,257 1,232 Allied Bank Limited ABL 1,050 1,000 Bank Alfalah Limited BAF 653 648

Medium Size Banks


2015 2014 Bank Al-Habib Limited BAH 423 351 Askari Bank Limited Askari 424 321 Meezan Bank Limited Meezan 551 428 Habib Metropolitan Bank Limited HMB 237 201 Standard Chartered Bank (Pakistan) Limited SCB 101 116 Faysal Bank Limited Faysal 280 274 Soneri Bank Limited Soneri 266 246 NIB Bank Limited NIB 171 171 JS Bank Limited JS 277 238 Summit Bank Limited Summit 192 188 Dubai Islamic Bank (Pakistan) Limited DIB 200 175 The Bank of Khyber BOK 130 116

Small Banks


2015 2014

Industrial and Commercial Bank of China Limited (Pakistan Branches) ICBC 3 3 Silkbank Limited Silk 88 88 Sindh Bank Limited Sindh 263 230 Citibank N.A (Pakistan Branches) Citibank 3 3 Albaraka Bank (Pakistan) Limited Albaraka 135 130 Samba Bank Limited SAMBA 34 28 First Women Bank Limited FWB 42 41 Deutsche Bank AG (Pakistan Branches) DB 3 3 The Bank of Tokyo Mitsubishi UFJ, Limited – Karachi Branch BOT 1 1 MCB Islamic Bank Limited MCBIB 6 -

*As at 31 December

Number of Branches and Legend (including sub-branches)



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

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

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

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

Annual Increase The percentage change compared to the previous year.

Annualised Increase The percentage change over the last two years on annualised basis, i.e.

Figure (year 2015) - 1 Figure (year 2013)

Cost of Funds Mark-up / return / interest expense

CASA Current and saving customer deposits to total customer deposits

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

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

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

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

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

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

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

Definitions



Non-markup / Non-Interest Income / Other Income

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

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

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

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

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

Operating Fixed Assets Operating fixed assets include intangible assets.

Other Assets Other assets include deferred tax assets.

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

Remuneration per Executive Remuneration of executives divided by number of executives.

Return on Average Assets Profit after tax as a percentage of average total assets.

Return on Average Equity Profit after tax as a percentage of average equity.

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

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

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

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www.kpmg.com.pk

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

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