BANKING SURVEY - jsa.com.pkjsa.com.pk/pdf/banking-survey-2015.pdf · BANKING SURVEY 2015 1 ......

BANKING SURVEY 2015

1 Junaidy Shoaib Asad Chartered Accountants

2015

BANKING SURVEY

BANKING SURVEY 2015


Table of Contents Purpose of the Banking survey 4

Structure of the survey 5

About Us 6

Liability Disclaimer 7

Income Streams 10

Markup vs. Non Markup Income (PK in m illions) 10

Non Markup Income Composition 16

Expenses 19

Composition of Markup Income and Markup Expenses 22

Profitability 25

Private Sectors (Profit Before Taxation) 27

Public Sector (Profit Before Taxation) 29

Islamic Sector (Profit Before Taxation) 31

Value Addition 32

Gross Advances 35

Net Advances 39

Non Performing Assets 40

Non performing asset to Gross advances comparison 44

Deposits 45

Deposit composition sector wise 47

Advances to Deposits 51

Capital Adequacy Ratio 54

BANKING SURVEY 2015


Earning per share 57

Performing asset vs. Non performing assets 59

Deposits per branch 65

Administration expenses per branch 67

Markup expense over Markup earned 69

Net Markup Income per branch 71

Fee, commission and brokerage income per branch 73

BASEL III 85

CREDIT RATINGS 95

Glossary 97

BANKING SURVEY 2015


Purpose of the Banking survey

The purpose of this survey is to give an overview of the financial performance of the banking industry of Pakistan during the year 2015 and compare

the performance of different banks with the preceding year. For this purpose, the banking sector is divided into following three categories, namely:

Private Banks

Public Sector Banks

Islamic Banks

There are other classifications of the banking sector as well, but the selected categories cover the broad classifications of each sector. The information

contained in this survey has been obtained from the published consolidated financial statements of the banks, statistical bulletins and quarterly /

annual reports published by State Bank of Pakistan (“SBP”), analysts and research reports and information published in business magazines and

newspapers.

To enhance the understanding of ratios and analysis of performance of a particular bank, reference should be made to the published financial

statements of the banks and glossary included at the end of this survey. We have tried to provide relevant financial analysis of banks, which we

thought would be useful for benchmarking and comparison purposes.

BANKING SURVEY 2015


Structure of the survey

The three categories, on which the banks are being classified as mentioned above, are from the perspective of Profitability, Assets and Liability.

Under these perspectives, the banks are individually analyzed and compared with their peers. The Profitability perspective provides the revenue

streams of the banks with more emphasis on mark-up income and non-mark-up income. While under the Assets perspective, the performing and non-

performing assets are discussed on the basis of available information. The survey then discusses the liabilities of the respective banks with a focus on

the composition and growth in deposits. At the end of this survey, some significant ratios are calculated for each bank and discussed in detail with the

aim of highlighting the respective banks’ performance. A detailed list of banks’ operating in Pakistan is presented on the pg. 8.

This list also contain list of some microfinance banks operating in the country but they have not been analyzed in this survey.

We feel that the performance could be analyzed in more detail however given the availability of limited information and time we have restricted the

survey to the analysis as desired in this survey. We would however encourage readers to provide further insight for making the survey more meaningful

and useful for banking regulators, banking sector and deposit holders. You can email your suggestion to [email protected]

BANKING SURVEY 2015


About Us

The firm was established in 2007 and represent Morison International as its member in Pakistan.

The firm is delivering value added prompt professional services to its valued clients with strong professional team lead by its Partners and qualified

staff through its offices in Karachi, Lahore and Islamabad.

Over the last nine years that the firm is operating, it has made its presence felt in the market and has built strong reputation as providers of quality

services with almost respect for the Ethical & Moral Standards. The list of our clients to whom we provide professional services include Non Banking

Financial Institutions, Public and Private Limited Companies operating in manufacturing, service and trading sectors.

JSA provides industry-focused services to its clients in order to build public trust and enhance value through the application of what we call Linked

Ideas. Our service culture combined with our cumulative knowledge culminates into innovative solutions to help promote the growth of our client’s

business. Before rendering innovative advice, we minutely ensure that all the legal and ethical obligations are respected. This is what we call Innovative

Solutions.

In brief, our firm is in the profession of audit, accountancy, taxation, corporate finance and corporate advisory services, which include professional

services on other related laws like competition law, Foreign Exchange Regulations, etc.

BANKING SURVEY 2015


Liability Disclaimer

Junaidy Shoaib Asad, Chartered Accountants makes no warranties or representations about this survey or any of its content. We are not responsible

for any direct, indirect or consequential loss suffered in connection with the use of this survey. We exclude, to the extent permitted by law, any

liability, which may arise as a result of use of this survey.

By using this survey on the Banking Industry of Pakistan, you agree to indemnify us for any loss or liability arising out of your use of this survey. This

material is produced by Junaidy Shoaib Asad, Chartered Accountants under the voluntary capacity and is based on public information.

This survey provides general information in a summarized form on banking industry performance for the year 2015 and 2014. The contents do not

compose suggestions and should not be relied upon as such. However, formal advice may be sought in particular matters, if considered necessary.

To the extent possible, we have avoided expressing opinion on the performance of banking companies analyzed in this survey. However if any analyses

is purported to constitute our opinion the same could only be inadvertent.

We have also endeavored to carry out the analysis on uniform criterion, which we consider necessary for establishing benchmarking criteria. Readers

are therefore encouraged to enlighten us if they feel some additional criterion or further refinement in the criterion used is necessitated.

Date: April 2015

Karachi

BANKING SURVEY 2015


PUBLIC BANKS

National Bank of Pakistan (NBP);

Sindh Bank Limited(SBL);

First Women Bank Limited (FWBL);

The Bank of Punjab(BOP)

The Bank of Khyber (BOK)

ISLAMIC BANKS

AL Baraka Bank (Pakistan) Limited (AB);

Bank Islami Pakistan Limited (BIP);

Burj Bank Limited(BB);

Dubai Islamic Bank Pakistan Limited (DIB);

Meezan Bank Limited (MB)

MICROFINANCE

BANKS

1- Khushhali Bank Limited;

2- APNA Microfinance Bank Limited;

3- NRSP Microfinance Bank Limited;

4- Pak Oman Microfinance Bank Limited;

5- Tameer Microfinance Bank Limited;

6- Waseela Microfinance Bank Limited; and

7- ADVANS Pakistan Microfinance Bank Limited

PRIVATE BANKS

Allied Bank Limited (ABL);

Askari Bank Limited (AKBL);

Bank Alfalah Limited (BAFL);

Bank Al Habib Limited (BAHL);

Faysal Bank Limited (FABL);

Habib Bank Limited (HBL) ;

Habib Metropolitan Bank Limited (HMB);

JS Bank Limited (JS);

MCB Bank Limited (MCB);

NIB Bank Limited (NIB);

SAMBA Bank Limited (SAMBA);

SILK Bank Limited (SILK)

Soneri Bank Limited (SONERI);

Standard Chartered Bank (SCB);

Summit Bank Limited (SUMMIT);

United Bank Limited (UBL).

BANKING SURVEY 2015


Banking Activities

BANKING SURVEY 2015


Income Streams

The major source of banks’ income is markup, which they derive through lending activities. Apart from this, they do earn non mark-up income

generated through provision of other services to their clients. The following graphical statistics segregate banks income into markup and non-markup

income. The statistics shows that around 80% of banks’ income is driven through lending activities.

Ma r ku p vs . N on M ar ku p I nc o me ( P K i n m illions)

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

private public islamic

719,472

114,38648,109

150,534

30,203

6,529

Markup Non Markup

Markup vs Non Markup Income (PKR in millions)

BANKING SURVEY 2015


Private banks - Markup vs Non Markup Income (PKR in millions)

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

ABL HBL MCB UBL Askari BAF BAH Faysal HMB JS NIB SAMBA SILK Soneri SCB Summit


Markup Non Markup

BANKING SURVEY 2015


Islamic banks - Markup vs. Non Markup (PKR in millions)

0%

20%

40%

60%

80%

100%

FWBL SBL BOP BOK NBP

1,516 114,386 10,129 10,869 31,263

409 35,102 3,492 1,799 7,636

Public banks - Markup vs Non Markup (PKR in millions)

Markup Non Markup

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Non Markup 9,755 36,583 17,639 23,687 6,780 9,102 4,486 5,564 9,247 4,298 6,004 805 1,895 3,153 7,117 4,419

Markup 72,116 144,23 80,532 97,574 36,594 61,425 50,310 32,313 36,860 15,465 14,737 5,468 8,933 18,320 33,883 10,710


BANKING SURVEY 2015


Islamic banks - Markup vs. Non Markup (PKR in millions)

75%

80%

85%

90%

95%

100%

AB BB DIB MBL

6,269 2,528 8,726 33,114

657

458 1,275 4,597

Islamic banks - Markup vs Non Markup (PKR in millions)

Markup Non Markup

BANKING SURVEY 2015


Private banks - Markup compositions (PKR in millions)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

24,959

65,668

26,262

35,409

15,755

25,459

14,576

17,497

9,565

6,021

8,451

1,690

6,797

8,562

12,670

5,696

23,750

73,853

53,290

35,207

19,750

22,521

20,743

11,395

23,850

8,473

5,007

2,053

1,766

9,066

20,498

4,888

22,399

14,099

571

24,128

243

9,105

14,635

2,896

2,731

1,248

289

Private banks - Markup compositions (PKR in millions)

on loans and advance to customers on loans and advance to financial institution On investment in securities available for sale

On investment in securities held to maturity On investment in securities held for trading On deposits with financial institutions

On securities purchased under resale agreement On certificates of Investment On call money lending

BANKING SURVEY 2015


0%

20%

40%

60%

80%

100%

DIP AB MB BB

6,063 4,115

13,751

2,041

1,432 1,226

6,599

416 1,194

182

12,762

Islamic bank - Markup compositions (PKR in millions)

On call money lending

On certificates of Investment

On securities purchased under resale agreement

On deposits with financial institutions

On investment in securities held for trading

On investment in securities held to maturity

On investment in securities available for sale

on loans and advance to financial institution

on loans and advance to customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FWBL SB BOP BOK NBP

718 4,064

15,560

3,285

57,023

730 4,749

12,806

6,560 38,925

47 1,009 1,810 587 16,360

On call money lending

On certificates of Investment

On securities purchased under resale agreement

On deposits with financial institutions

On investment in securities held for trading

On investment in securities held to maturity

On investment in securities available for sale

on loans and advance to financial institution

on loans and advance to customers

Public bank - Markup income composition (PKR in milions)

BANKING SURVEY 2015


Non Markup Income Composition

Total non-markup income of the banking industry has been booked at PKR 197.865 billion (2014: PKR 167.933 billion). Private sector’s share amounted

to PKR150.534 billion (2014: PKR 123.933 billion). Whereas Public sector contributes about PKR 40.802 billion (2014: PKR 36.304 billion) and Islamic

banks had a share of PKR 6.529 billion (2014: PKR 7.696 billion). The statistics highlights that majority of banks reported growth in non-markup income

except Islamic banks where growth being negative.

Further non-markup income of the banking industry comprised fee, commission & brokerage income of 84.895 billion (2014: PKR 75.448 billion), that

amounts to 43.18% of total non-funded income (2014: 45.1%) during the year, whereas PKR 59.636 billion (2014: PKR 32.678 billion) was booked on

account of sale of securities, which makes up 30.34% (2014: 19.5%) of total non-funded income. The banks included in this survey had also reported

PKR 22.65 billion on account of income from dealing in foreign currency (2014: PKR 26.255 billion), that is 11.5% of total non funded income, and PKR

14.21 billion (2014: PKR 11.705 billion) as dividend income. Based on statistics given above we may conclude that fee, commission and brokerage are

main contributors in banks non-markup income.

BANKING SURVEY 2015


3,570

17,089

8,994

14,239

1,937

4,570

2,321

2,303

2,893

1,785

1,421

126

977

1,344

3,636

1,273

3,528

1,543

861

2,350

308

350

537

318

149

180

191

22

41

160

1

78

838

2,749

772

2,588

835

1,379

707

965

1,083

288

357

75

182

473

2,061

534

833

11,042

4,344

3,195

3,120

1,535

137

1,739

4,781

1,995

4,008

485

651

1,126

1,016

2,443

986

743

2,091

1,299

581

730

695

266

341

36

42

96

43

52

399

104

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

Fees,Commission & Brokerage Dividend Income

Income from dealing in foreign currencies Gain on sale & redemption of securities

Unrealized gain on revaluation of investment held for trading Share of profit from joint ventures

Share of profit from associates other income

Private banks - Non Markup income compositions (PKR in millions)

BANKING SURVEY 2015


39

234

828

258

13,460

20

120

100

2,707

29

139

4,899

296

3,063

5,014

1,189

12,283

25

6

1,635

119

2,111

FWBL

SB

BOP

BOK

NBP

Public banks Non Markup Income Composition (PKR in millions) Fee,Commission & Brokerage Income Dividend Income




-

22

629

75

7

161

1,471

26

16

13

342

182

2

19

167

25

1,250

439

1,987

152

Fee,Commission & Brokerage Income Dividend Income




Islamic banks Non Markup Income Compositions (PKR in millions)

BANKING SURVEY 2015


Expenses

The following graph shows the expenses section of the three banking sectors, for the purposes of our analysis we have selected only selected one line item i.e. Administration expense.

Administration expenses for the year stood at PKR301.084 billion (2014: PKR 292.08 billion) which means absolute increase of 3.08% during the year. Staff costs remained one of the most significant components of administrative expenses for the banks, averaging approximately 50% (2014: 50.4%) of total Administration expenses.

Furthermore, provisions amounted to PKR 40.82 billion (2013: PKR 28.312 billion), which posted an increase of 44% during the year, out of which, PKR 34.59 billion was booked against NPL (2014: PKR 26.507 billion). The statistics shows that increased provision is mainly attributable to 30.5% growth in NPL.

The following graph below will provide better insight about the administration expenses with their compositions as well as their related comparisons.

BANKING SURVEY 2015


9,864

22,100

9,224

12,386

6,194

9,387

6,762

4,448

4,294

2,264

2,972

885

2,416

2,353

5,624

1,905

2,134

5,476

2,930

4,284

1,704

3,379

2,058

2,018

1,203

857

1,007

326

694

910

1,289

1,093

522

3,317

1,674

1,762

600

1,527

1,090

822

282

389

455

230

298

167

1,071

174

2,018

3,099

2,418

2,315

874

2,081

1,268

821

567

498

627

124

444

622

522

608

969

4,166

2,145

5,191

1,291

1,714

1,570

1,080

1,043

799

423

177

472

975

2,289

489

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

Private Banks - Admin expenses (PKR in millions)

Salaries & Allowances Charge for define benefit plans Rent,taxes,insurance,electricity & Other utility

Legal & Professional charges Repair & maintenance Communication

Books,stationery,printing & other computer accessories Advertisement,sponsorship & publicity Depreciation & Amortization

Security services Outsourcing & janitorial services Auditor Remuneration

Others

BANKING SURVEY 2015


413

1,533

3,774

1,525

24,638

33

81

103

83

4,417

127

638

871

376

3,329

75

371

618

191

2,282

-

189

-

93

1,995

36

142

1,271

269

2,173

FWBL

SB

BOP

BOK

NBP

Salaries & Allowances Charge for define benefit plansRent,taxes,insurance,electricity & Other utility Legal & Professional chargesRepair & maintenance CommunicationBooks,stationery,printing & other computer accessories Advertisement,sponsorship & publicityDepreciation & Amortization Security servicesOutsourcing & janitorial services Auditor RemunerationOthers

Public banks - Admin Expenses composition (PKR in millions)

1,162

770

2,039

6,355

584

499

1,204

2,084

64

96

285

481

237

204

392

1145

425

278

496

1876

Albaraka

Burj

DIB

Meezan

Islamic banks - Admin Expenses composition (PKR in millions)Salaries & Allowances Charge for define benefit plansRent,taxes,insurance,electricity & Other utility Legal & Professional chargesRepair & maintenance CommunicationBooks,stationery,printing & other computer accessories Advertisement,sponsorship & publicityDepreciation & Amortization Security servicesOutsourcing & janitorial services Auditor RemunerationOthers

BANKING SURVEY 2015


Composition of Markup Income and Markup Expenses

72,116 144,232 80,532 97,574

36,594 61,425 50,310

32,313 36,860 15,465 14,737

5,468 8,933 18,320

33,883

10,710

35,977 66,064 31,210 39,715

21,688 32,810 25,476 18,358 22,461 9,681 10,087 3,326 5,834 10,722

11,117

7,654

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Private banks (PKR in millions)

Markup income Markup Expenses

BANKING SURVEY 2015


1,516 10,129 31,263 10,869 114,386

819 5,648 20,199 6,441 59,999

First Women Bank Sindh Bank Bank of Punjab Bank of Khyber National Bank

Public banks - Markup Income vs Markup Expenses (PKR in millions)

Markup income Markup Expenses

8,726 6,269 33,114 2,528

4,091 3,791 14,897 1,395

DIP al baraka Meezan burj

Islamic Bank - Markup Income vs Markup Expenses (PKR in millions)Mark up Income Mark up Expense

BANKING SURVEY 2015


PROFITABILITY

BANKING SURVEY 2015


Profitability

The banks included in this survey have reported a total net Profit before Tax (“PBT”) for the year ended 31 December 2015 amounting to PKR 300.185

billion (2014: PKR 238.807 billion), whereas, total net Profit after Tax (“PAT”) was PKR 189.04 billion (2014: PKR 158.948 billion). The banks have

managed to earn total gross revenue of PKR 1,102.346 billion during the year (2014: PKR 1,052.508 billion); non-funded income amounted to around

PKR 197.865 billion (2014: PKR 167.465 billion), accounting for around 17.94% of total gross revenue for the year (2014: 15.9%). The following chart

shows the profit before tax (PBT) of the three banking sectors and their respective variations during the year.

13%

84%

3%Public Banks(34,271)

Private Banks(251,098)

Islamic Banks(9277)

Profit before tax 2015

PBT 2015 2014 Increase/(Decrease) Variation

Public Banks 39,339 30,343 8,995 30%

Private Banks 251,098 199,965 51,133 26%

Islamic Banks 9,990 8,508 1,482 17%

BANKING SURVEY 2015


The following chart shows the profit after tax (PAT) of the three banking sectors and their respective variations during the year. The chart given below

reflects all three sectors of banks have reported significant growth in profit after tax (PAT).

12%

84%

4%

Profit After Tax 2015

Public Banks

Private Banks

Islamic Banks

PAT 2015 2014 Increase/Decrease Variation

Public Banks 23,263 15,626 7,637 49%

Private Banks 158,991 132,529 26,463 20%

Islamic Banks 6,790 5,157 1,633 32%

BANKING SURVEY 2015


Private Sectors (Profit Before Taxation)

Private Sector Banks have registered Net PBT of PKR 251.098 billion (2014: PKR 199.956 billion) during the year which amounts to 83.64% (2014:

83.7%) of total net PBT reported by the banks under review.

Net PAT for the private sector stood at PKR 158.991 billion for the year (2014: PKR 132.52 billion). Total gross revenue contributed PKR 870.006 billion

(2014: PKR 792.904 billion), whereas PKR 352.18 billion (2014: PKR 360.013 billion) had been earned on account of interest/mark-up/return income.

The overall net provision booked in this sector was PKR 25.491 billion (2014: PKR 14.521 billion), out of which, PKR 19.97 billion (2014: PKR 12.492

billion) was booked against NPL. Total operating cost in this sector was PKR 241.237 billion (2014: PKR 218.414 billion).

During the current year, HBL had posted the highest PBT of PKR 60.532 billion and PAT of PKR 35.347 billion. However, the highest total provisions of

PKR 4.507 billion was also booked by HBL, out of which, PKR 4.853 billion was provided against NPL. The graph given below reflects that all the private

sector banks under review-experienced growth in profit before tax (PBT).

BANKING SURVEY 2015


(10,000) - 10,000 20,000 30,000 40,000 50,000 60,000 70,000

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit


2014 22,432 48,515 37,235 35,617 5,869 8,514 10,012 3,551 7,336 2,589 (108) 426 132 2,442 15,368 35

2015 25,504 60,532 42,337 43,449 8,337 12,657 12,265 6,920 12,564 3,768 3,858 907 (1,839) 3,585 15,566 689

Private Sector - Profit Before tax (PKR in millions)

BANKING SURVEY 2015


Public Sector (Profit Before Taxation)

Public Sector Banks have registered net PBT of PKR 39.339 billion (2014: PKR 25.168 billion) during the year, i.e. around 13.1% (2014: 8.38%) of total

net PBT booked by the banks in this survey.

Net PAT for the sector stood at PKR 23.263 billion for the year (2014: PKR 15.626 billion). Contribution of total gross revenue had been of PKR 177.702

billion (2014: PKR 196.380 billion), whereas PKR 72.907 billion (2014: PKR 103.45 billion) had been earned on account of interest/mark-up/return

income.



During the current year, NBP had posted the highest PBT of PKR 34.271 billion and PAT of PKR 20.176 billion. However, highest total provisions of PKR

11.319 billion was also booked by NBP, out of which, PKR 10.864 billion was booked against NPL. The graph given below shows that except first women

bank limited all public sector banks reported growth in profit before tax (PBT).

BANKING SURVEY 2015


(5,000) - 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

FWBL

SB

BOP

BOK

NBP

FWBL SB BOP BOK NBP

2014 (666) 4,361 1,901 1,611 23,136

2015 33 - 2,959 2,076 34,271

Public Sector Profit Before Tax (PKR in millions)

BANKING SURVEY 2015


Islamic Sector (Profit Before Taxation)

Islamic Sector Banks have registered net PBT of PKR 9.748 billion (2014: PKR 7.894 billion) during the year, i.e. around 3.25% (2014: 2.63%) of total

net PBT booked by the banks included in this survey. The highlights the fact that Islamic banking industry is still in its developing phase.

Net PAT for the sector stood at PKR 23.263 billion for the year (2014: PKR 15.626 billion). Contribution of total gross revenue had been of PKR 177.702

billion (2014: PKR 196.380 billion), whereas PKR 72.907 billion (2014: PKR 103.45 billion) had been incurred on account of interest/mark-up/return

income.



During the current year, Meezan had posted the highest PBT of PKR 8.87 billion and PAT of PKR 20.176 billion. Highest total provisions of PKR 11.319

billion was booked by NBP, out of which, PKR 10.864 billion was booked against NPL. The graph has been provided below:

(2,000) - 2,000 4,000 6,000 8,000 10,000

DIP

al baraka

Meezan

burj


2014 925 216 6,898 (614)

2015 713 407 8,870 (481)

Islamic Sector Profit Before Tax (PKR in millions)

BANKING SURVEY 2015


Value Addition

During the year ended 31 December 2015, total value added by the banks under survey amounted to PKR 493.180 billion (2014: 408.085 billion), after

taking into account the Service Cost of PKR 120.477 billion (2014: PKR 124.802 billion). Out of the said value addition, PKR 150.089 billion (2014: PKR

1146.270 billion) was allocated to Employees, while PKR 69.049 billion (2014: PKR 91.231 billion) and PKR 41.806 billion (2014: PKR 23.018 billion) was

allocated to Shareholders and for Growth & Expansion by the banks respectively.

PARTICULARS PRIVATE PUBLIC ISLAMIC TOTAL

Income from banking services 516,785 89,474 25,888 632,147

Cost of services (95,910) (12,534) (7,021) (115,465)

Value added by banking services 420,875 76,940 18,867 516,682

Non-banking income 1,041 15 61 1,117

Provisions against non-performing assets (25,491) (11,319) (501) (37,311)

Total value added / (lost) 396,425 65,636 18,427 480,488

Value allocated to: Employees 107,122 29,081 8,009 144,212

Government 90,456 14,095 3,596 108,147

Growth & expansion 37,117 2,283 1,383 40,783

Society 1,088 1 - 1,089

Shareholders 49,835 15,956 3,258 69,049

Retained / (absorbed) in business 110,902 4,220 2,012 117,134

The pie chart given below highlights that all sectors of banks reported increase in value added services as compare to last year.

BANKING SURVEY 2015


78.2%

16.9%

4.9%

Value Added Services 2014

82%

14%

4%

Value Added Services 2015

BANKING SURVEY 2015


BANKING ASSETS

BANKING SURVEY 2015


Gross Advances

Total advances during the year stood at PKR 4.849 billion (2014: PKR 4.856 billion) which is 34.32% (2014: 41.48%) of the total asset base of the

banking industry. Sector wise breakup of the advances is as under:

Gross Advances

Sectors 2015 2014 Increase/Decrease Variation

Public Banks 790,440 1,022,911 (232,471) -23%

Private Banks 3,686,088 3,477,038 209,050 6%

Islamic Banks 372,974 356,777 16,197 5%

The above table reflects that public sector banks have reported significant decline in total advances, however situation is reversed in case of private and Islamic

sectors.

BANKING SURVEY 2015


All private sectors experienced mixed result but HBL reported significant increase in advances. In public sector banks the decline in advances attributable to significant decline in NBP advances, apart from NBP majority of banks reported increase. In case of Islamic Sector Meezan and DIP reported significant growth in advances.

16%

76%

8%

Gross Advances 2015

Public Banks Private Banks Islamic Banks

21%

72%

7%

Gross Advances 2014


BANKING SURVEY 2015


-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000


2015 340,76 702,56 333,81 529,91 228,41 343,49 214,27 202,54 150,73 79,402 135,02 26,260 67,045 120,61 128,11 83100

2014 325,86 661,47 322,75 514,28 198,67 304,84 187,97 204,67 150,16 58,775 117,65 23,916 64,417 113,72 150,02 77804

Private Sector Gross Advances (PKR in millions)

BANKING SURVEY 2015


-

200,000

400,000

600,000

800,000


2015 9,253 46,665 250,342 40,137 694,385

2014 9,401 41,204 197,083 43,243 731,980

Public Sector Gross Advances (PKR In millions)

-

50,000

100,000

150,000

200,000

250,000


2015 106,651 50,548 215,775 19,567

2014 60,350 49,835 183,285 21,609

Islamic Sector Gross Advances (PKR in millions)

BANKING SURVEY 2015


Net Advances

Net advances during the year dialed in at PKR 4.390 billion (2014: PKR 4.395 billion) which is 34.32% (2014: 41.48%) of the total asset of the banking

industry. Sector wise breakup of the advances is as under:

Net Advances

Sectors 2015 2014 Increase/Decrease Variation

Public Banks 668,687 890,090 (221,403) -25%

Private Banks 3,361,901 3,162,857 199,044 6%

Islamic Banks 360,168 342,632 17,536 5%

15%

77%

8%

Net Advances 2015


20%

76%

4%

Net Advances 2014


BANKING SURVEY 2015


Non Performing Assets

Gross Advances include PKR 515.766 billion (2014: PKR 574.319 billion) non-performing assets against which, provision of PKR 456.869 billion (2014:

PKR 459.498 billion) had been booked by the banks under review of this survey. Aggregate provision to NPL ratio stood at 88.58% (2014: 80.01%).

BANKING SURVEY 2015


Banking Sectors 2015 2014

NPL Provision NPL Provision

Private Sector 366,161 322,266 376,247 314,181

Public Sector 135,595 121,797 183,552 132,821

Islamic Sector 14,010 12,806 16,333 14,144

The composition of non-performing assets within the various banks were as follows The highest amount of nonperforming asset (NPA) has been booked by HBL among private banking sector which is PKR 76.792 billion (2014: PKR 79.527 billion) with a total gross advances of PKR 3,686.088 billion (2014: PKR 3,477.038 billion). Whereas NBP among public banking sector, which is PKR 128.277 billion (2014: PKR 121.680 billion), have posted the highest figures against NPA with a total gross advances of PKR 790.440 billion (2014: PKR 1,022.911 billion). Moreover MBL have highest amount of NPA among Islamic sector, which is PKR 7.064 billion (2014: PKR 6.912 billion), with a total gross advances of PKR 372.974 billion (2014: PKR 356.777 billion).

71%

26%3%

Non performing asset 2015

Private Sector Public Sector Islamic Sector

65%

32%

3%

Non performing asset 2014

Private Sector Public Sector Islamic Sector

BANKING SURVEY 2015



2015 21,904 76,792 20,369 48,072 31,484 18,455 5,874 30,289 18,487 2,983 28,173 1,974 8,520 11,584 24,018 17,183

2014 22,922 79,527 21,908 57,105 31,376 19,412 5,025 29,293 19,325 2,813 29,017 2,144 8,222 10,224 23,096 14,838

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Private Sector Non Performing Assets (PKR in millions)

BANKING SURVEY 2015



2015 1,895 290 60,165 5,133 128,277

2014 1,411 340 55,611 4,509 121,680

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Public Sector Non Performing Assets (PKR in millions)

DIP AB MBL BB

2015 2,904 4,042 7,064 1,477

2014 2,369 4,177 6,912 1,813

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Islamic Sector Non Performing Assets (PKR in millions)

BANKING SURVEY 2015


Non performing asset to Gross advances comparison

Total Gross advances for banking sector totaled PKR 4848 billion (2014:4855 billion) of which PKR 515.766 billion (2014: PKR 574.319 billion) has been

booked as non-performing assets.

Public sector banks reported highest NPA to Gross Advance ratio, which remained 17% for both the years; whereas Islamic banking sector reported

lowest NPA to gross advance ratio, which remained around 4% for both the years.

Banking sectors

2015 2014

Non Performing loans Gross Advances Non Performing loans Gross Advances

Public Bank 135,595 790,440 183,552 1,022,911

Private Bank 366,161 3,686,088 376,247 3,477,038

Islamic Bank 14,010 372,974 16,333 356,777

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Public Bank Private Bank Islamic Bank

183,552 376,247

16,333

1,022,911

3,477,038

356,777

2014Non Performing loans Gross Advances

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Public Bank Private Bank Islamic Bank

135,595 366,161

14,010

790,440

3,686,088

372,974

2015Non Performing loans Gross Advances

BANKING SURVEY 2015


Deposits

Total deposits of the banking industry during the year stood at PKR 9,618.427 billion (2014: PKR 9,166.319 billion) which includes fixed deposits i.e. PKR 2,210.348 billion (2014: PKR 2,299.958billion), saving deposits PKR 3,521.586 billion (2014: PKR 3,394.651 billion) and financial institution deposits PKR 521.586 billion (2014: PKR 356.907 billion). Further breakup of the deposits has been provided below:

DEPOSITS

Deposits 2015 2014 Increase/(Decrease) Variance %

Fixed Deposits 2,210,348 2,299,958 (89,610) -4%

Saving Deposits 3,521,586 3,394,651 126,935 4%

Current Deposits - remunerative 340,795 336,047 4,748 1%

Current Deposits - non remunerative 2,976,606 2,724,364 252,242 9%

Other Deposits 47,506 54,393 (6,887) -13%

Financial Institutions 521,586 356,907 164,679 46%

There are mixed results reported for various types of deposits however, the significant growth was experienced in Financial Institution deposits.

BANKING SURVEY 2015


23%

37%4%

31%

5%

Deposits (2015)

Fixed Deposits

Saving Deposits

Current Deposits -remunerative

Current Deposits -non remunerative

Other Deposits

25%

37%4%

30%

4%

Deposits (2014)

Fixed Deposits

Saving Deposits

Current Deposits -remunerative

Current Deposits -non remunerative

Other Deposits

BANKING SURVEY 2015


Deposit composition sector wise

private sector posted highest deposits among banking sector i.e. PKR 7,506.688 billion (2014: PKR 6,761.399 billion) which makes up approximately 80% of total banking industry deposits; whereas the share of public sector and Islamic banking sector is 17.6% and 2.4% respectively

Deposits

Deposit composition Private Public Islamic

Fixed Deposits 1,685,158 408,202 194,638

Saving Deposits 2,871,131 459,012 268,200

Current Deposits - remunerative 157,463 187,563 -

Current Deposits - non remunerative 2,449,351 382,434 195,029

Other Deposits 45,625 4,517 1,881

Financial Institutions 297,960 206,184 20,456

Deposits Growth Comparison

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Private

Public

Islamic

1,685,158

408,202

194,638

2,871,131

459,012

268,200

157,463

187,563

-

2,449,351

382,434

195,029

297,960

206,184

20,456

Deposit composition 2015Fixed Deposits Saving Deposits Current Deposits - remunerative Current Deposits - non remunerative Other Deposits Financial Institutions

BANKING SURVEY 2015


-

2,000,000

4,000,000

6,000,000

8,000,000

2015 2014 2015 2014 2015 2014

Private Islamic Public

7,506,688 6,761,399

680,204 660,628 1,647,912 1,744,292

Deposits PKR in millionsDeposits Total

- 200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000

FWBL SBL BOP BOK NBP

2015 15,163 83,922 374,961 117,292 1,431,535

2014 13,449 61,884 342,291 92,264 1,234,405

Public banks - Total deposits (PKR in million)

BANKING SURVEY 2015


-

100,000

200,000

300,000

400,000

500,000


2015 136,742 71,644 471,818 25,637

2014 83,844 80,222 380,422 25,809

Islamic banks - Total deposits (PKR in million)

BANKING SURVEY 2015


-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000


2015 734,597 1,634,9 708,091 1,119,9 433,166 640,137 516,199 292,130 403,208 141,840 130,399 38,844 81,098 185,222 327,121 119,741

2014 667,864 1,524,5 688,270 951,902 387,535 605,963 446,311 26,303 319,948 107,430 105,103 31,642 68,770 163,250 304,305 105,222

Private banks - Total deposits comparision (PKR in million)

BANKING SURVEY 2015


Advances to Deposits

Advance to deposits ratio measures how much advances lent by banks is done through deposits. The outcome of this ratio reflects the ability of banks to make optimal use of deposits.

Total gross advances to deposit (ADR) ratio is approximately decreased to 49.31% in 2015 from 52.9% in 2014 As the growth rate of deposits being higher than growth rate in advances.

The bar chart given above reflects that both private and public sector experienced overall decline in ADR however, the Islamic banking sector being exception and reported minor increase in ADR.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Private Public Islamic

49.10% 47.97%54.83%51.42%

58.64%54.01%

2015 2014

Advances to deposits ratio (PKR in millions)

BANKING SURVEY 2015


ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

46.39%

42.97%

47.14%

47.32%

52.73%

53.66%

41.51%

69.33%

37.38%

55.98%

103.55%

67.60%

82.67%

65.12%

39.16%

69.40%

48.79%

43.39%

46.89%

54.03%

51.27%

50.31%

42.12%

72.24%

46.93%

54.71%

111.94%

75.58%

93.67%

69.67%

49.30%

73.94%

Private Banks - Advances to deposits (PKR in millions)

2015 2014

BANKING SURVEY 2015


FWBL

NBP

Sindh

BOK

BOP

61.02%

48.51%

55.61%

34.22%

66.76%

69.90%

59.30%

66.58%

46.87%

57.58%

2015 2014

Public banks -Advances to deposits (PKR in millions)

Al abaraka

Burj

DIB

Meezan

70.55%

76.32%

77.99%

45.73%

62.12%

83.73%

71.98%

48.18%

Islamic banks -Advances to deposits (PKR in millions)2015 2014

BANKING SURVEY 2015


Capital Adequacy Ratio

Banks capital adequacy ratio is the ratio of bank qualifying capital to risk adjusted assets. The higher capital adequacy ratio shows that banks are adequately capitalized to expand its operations.

The graph given below reflects that mixed results were experienced by private sectors banks however samba bank reported highest capital adequacy ratio. i.e. 30.30% (2014: 37.08%) whereas silk bank reported lowest ratio i.e. 10.00% (2014: 9.14%). Moreover, First women bank i.e. 41.23% (2014: 29.12%) and Al Baraka 18.2% (2014:14.24%) being the leading public sector and Islamic sector banks respectively.

BANKING SURVEY 2015


0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%


20.85%16.98% 19.00%

14.70% 12.50% 13.40% 13.87% 14.41%18.40%

15.23%10.00%

30.30%

10.00%15.39%

18.20%

10.05%

19.88%

16.21%

20.41%

14.30%13.18% 12.75%

14.97%12.22%

17.39%

16.73%

11.98%

37.08%

9.14%

12.50%

18.91%

12.22%

Private Banks - Capital adequacy ratio (PKR in millions)

2015 2014

BANKING SURVEY 2015


0.00%

20.00%

40.00%

60.00%

80.00%

FWBL NBP Sindh BOK BOP

41.23%

18.38% 20.41% 23.75%10.50%

29.12%

18.17%22.57% 22.65%

10.21%

Public Banks - Capital adequacy ratio (PKR in millions)2015 2014

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Al abaraka Burj DIB Meezan

18.20% 18.06%11.13% 10.98%

14.24%18.64%

17.08%11.88%

Islamic Banks - Capital adequacy ratio (PKR in millions)2015 2014

BANKING SURVEY 2015


Earning per share

Earning per Share (EPS) is the key indicator of banks financial performance as it is linked to profitability of banks. Majority of banks included in this survey have either reported minor increase in EPS or the same results were obtained as in last year however, few exceptions were also reported.

Habib bank posted highest EPS among all private banks i.e. 23.93 (2014: 21.63).Moreover leading earning per share among public sector and Islamic sector being national bank i.e. 9.44 (2014: 7.56) and Meezan Bank of 5.01 (2014: 4.56) respectively

(10.00) - 10.00 20.00 30.00 40.00 50.00

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit


2015 13.20 23.93 22.38 21.36 4.00 4.72 6.60 3.52 7.32 1.95 0.24 0.43 0.58 2.01 2.39 0.16

2014 13.28 21.63 22.15 19.32 3.19 4.08 5.79 2.37 4.72 1.35 (0.07) 0.24 0.03 1.44 2.49 0.16

Private Banks - Earning per share (PKR in rupees)

BANKING SURVEY 2015


(5.00) - 5.00 10.00 15.00 20.00

FWBL

NBP

Sindh

BOK

BOP

FWBL NBP Sindh BOK BOP

2015 0.21 9.44 - 1.79 3.03

2014 (2.75) 7.56 1.08 1.31 1.97

Public banks - Earning per share (PKR in Rupees)

- 2.00 4.00 6.00 8.00 10.00 12.00

AB

BB

DIB

MBL

AB BB DIB MBL

2015 0.27 0.48 0.62 5.01

2014 0.16 0.58 0.86 4.56

Islamic banks - Earning per share (PKR in Rupees)

BANKING SURVEY 2015


Performing asset vs. Non performing assets

318,865

625,769

313,446

481,843

196,935

325,035

208,399

172,254

132,252

76,419

106,855

24,286

58,525

109,033

104,094

65,917

21,904

76,792

20,369

48,072

31,484

18,455

5,874

30,289

18,487

2,983

28,173

1,974

8,520

11,584

24,018

17,183

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

Private Banks - performing and non performing (PKR in millions)Non Performing Performing 2015

BANKING SURVEY 2015


7,358

46,375

190,177

35,004

566,108

1,895

290

60,165

5,133

128,277

FWBL

SB

BOP

BOK

NBP

Public banks - performing and non performing (PKR in millions)Non Performing Performing

103,747

46,506

208,711

18,090

2,904

4,042

7,064

1,477

DIP

ABL

MBL

BB

Islamic banks - performing and non performing (PKR in million)Non Performing Performing

BANKING SURVEY 2015


The non-performing to performing assets ratio indicates quality of banks loans. The bank with higher said ratio indicates lower profitability in future due to higher requirement for provision against non-performing assets.

Among large private sector banks, HBL has higher portion of non-performing assets, which is around 12% in relation to performing assets. While among public sector banks BOP has highest portfolio of non-performing assets that is approximately 31 %.Moreover, the Burj bank posted highest proportion of non-performing asset in Islamic banking sector.

BANKING SURVEY 2015


Asset over deposits

Asset over deposit ratio is used to assess the overall liquidity of banks. The higher assets to deposit ratio shows high liquidity.

The average assets to deposits ratio in private sector banks revolves around 1.35 times. Among private banks, SAMBA bank reported highest assets over deposits ratio i.e. 2.06.

Public sector banks also reported the similar result where the assets over deposits ratio revolves around 1.32 times however, the Sindh bank achieved highest assets to deposit ratio.

RATIO ANALYSIS

BANKING SURVEY 2015


Among Islamic banks the average assets over deposit ratio is around 1.15 times. However, the Burj bank reported highest assets over deposit ratio in sector i.e. 1.32 times.

1.35 1.36 1.44 1.33

1.24 1.41

1.24 1.47

1.21

1.56

1.88 2.06

1.64 1.37 1.39

1.57

-

0.50

1.00

1.50

2.00

2.50


Private banks - Asset Over Deposits

1.41 1.53

1.26 1.32

1.20

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80


Public banks - Assets over Deposits

BANKING SURVEY 2015


1.1

1.2

1.1

1.3

1.1

1.1

1.2

1.2

1.3

1.3


Islamic banks - Asset Over Deposits

BANKING SURVEY 2015


Deposits per branch

700

958

568

842

1,256

980 978 1,043

1,701

512

763

1,142 922

696

2,820

624

-

500

1,000

1,500

2,000

2,500

3,000


Private banks - Deposits Per Branch (PKR in million)

BANKING SURVEY 2015


361.02 335.69

923.55 902.25

1,005.29

-

200.00

400.00

600.00

800.00

1,000.00

1,200.00


Public bank - Deposits per Branch (PKR in millions)

684

531

856

346

0

100

200

300

400

500

600

700

800

900

DIP(200) al baraka(135) Meezan(551) burj

Islamic banks - Deposits per branch (PKR in million)

BANKING SURVEY 2015


Administration expenses per branch

9.39

12.95 7.40 9.31

17.95

14.38 12.81

15.89

18.12

8.17 17.38 26.03

27.45 8.85 48.48

9.92

2.03

3.21

2.35 3.22

4.94

5.17

3.90

7.21

5.08

3.09 5.89

9.59 7.89

3.42

11.11 5.69

0.50

1.94

1.34 1.32

1.74 2.34 2.06 2.94

1.19 1.40 2.66

6.76

3.39

0.63

9.23 0.91

0.35 0.93 0.98 0.91 1.27 1.13 0.59 1.05 1.01 0.36 1.03

3.53 2.73 0.29

3.84 1.05


Private banks - Expenses per branch (PKR in million)Salary and allowances Rents and rates, electricity, insurance Legal and Professional Repair and Maintenance Communications

BANKING SURVEY 2015


0.86 0.40 0.32 0.75 0.66

0.86 0.60 0.40 0.29 0.75

3.02 2.55 2.15 2.89

2.34

0.33 0.04 0.12 0.38 0.22


Public banks - Expenses Per Branch (PKR in millions)Communication Stationery Repair & Maintenance Rents & Electricity Legal charges

0.73 0.96 1.07 0.67 0.34 0.24

0.56

4.33 6.74 6.02

3.78

0.47 1.30 1.42 0.87

0.27 0.46 0.44 0.03

Albaraka Burj DIB Meezan

Islamic banks - Expenses per branch (PKR in million)Communication stationary Rent and electricity Repair & maintenance Legal & Professional charges

BANKING SURVEY 2015


Markup expense over Markup earned

57.95

49.88

43.62

45.30

65.60

60.50

56.66

57.19

65.28

63.84

74.62

60.75

63.30

62.98

39.33

75.22

49.89

45.80

38.75

40.70

59.27

53.41

50.64

56.81

60.94

62.60

68.45

60.83

65.31

58.53

32.81

71.47

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

Private banks - Markup expense over Markup earned (in %)

2014 2015

BANKING SURVEY 2015


54.02

55.76

64.61

59.26

52.45

62.18

61.54

69.54

63.69

60.82

First Women Bank

Sindh Bank

Bank of Punjab

Bank of Khyber

National Bank

Public banks - Markup expense over Markup earned (in %)2015 2014

46.88

60.47

44.99

55.18

45.65

67.53

53.61

69.19

DIB

ABL

MBL

BB

Islamic banks - Markup Expense over Markup earned (in %)

2015 2014

BANKING SURVEY 2015


Net Markup Income per branch

34.42

45.79

39.58

43.50

43.21

33.50

47.03

49.84

60.76

20.88

27.19

63.00

35.22

28.56

196.26

15.92

ABL

HBL

MCB

UBL

Askari

BAF

BAH

Faysal

HMB

JS

NIB

SAMBA

SILK

Soneri

SCB

Summit

Private banks - Markup Income per branch (PKR in millions)

BANKING SURVEY 2015


16.60

17.92

27.25

34.06

38.19

FWBL

SB

BOP

BOK

NBP

Public banks - Net Markup Income Per Branch (PKR in millions)

23.18

18.36

33.06

15.31

DIB

ABL

MBL

BB

Net Markup Income Per Branch (PKR in millions)

BANKING SURVEY 2015


Fee, commission and brokerage income per branch

3.40

10.01

7.22

10.71

5.61

7.00

4.40

8.23

12.21

6.44

8.31

3.71

11.10

5.05

0.01

6.63

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00


Private banks - Fees, commission, brokerage income per branch (PKR in millions)

BANKING SURVEY 2015


0.93 0.94

2.04 1.98

9.45

0.35

2.35

4.35

6.35

8.35

10.35


Public banks - Fee, Commission & Brokerage Income Per Branch (PKR in millions)

2015

6.25

3.25 3.61

2.05

0.35

1.35

2.35

3.35

4.35

5.35

6.35

7.35


Islamic banks - Fee, Commission & Brokerage Income Per Branch (PKR in millions)

2015

BANKING SURVEY 2015


Income from dealing in foreign currency per branch

0.80 1.61 0.62

1.95 2.42 2.11 1.34 3.45 4.57

1.04 2.09 2.21 2.07 1.78

17.77

2.78

-

5.00

10.00

15.00

20.00


Private banks - Income from dealing in foreign currencies (PKR in million)

0.69 1.07

3.44

0.35

0.85

1.35

1.85

2.35

2.85

3.35

3.85


Public banks - Income from dealing in foreign currencies Per Branch (PKR in million)

BANKING SURVEY 2015


1.19

2.67

0.350.35

0.85

1.35

1.85

2.35

2.85

DIB al baraka Meezan burj

Islamic Banks- Income from dealing in foreign currencies(PKR in millions)

BANKING SURVEY 2015


Income stream of Private Banks for the year ended 2015

Income Streams

Income Streams ABL HBL MCB UBL Askari BAF BAH Faysal HMB JS NIB SAMBA SILK SONERI SCB SUMMIT

Net Markup Income

36,139 78,168 49,322 57,859 14,906 28,615 24,834 13,955 14,399 5,784 4,650 2,142 3,099 7,598 22,766 3,056

Fees, commission and brokerage

income 3,570 17,089 8,994 14,239 1,937 4,570 2,321 2,303 2,893 1,785 1,421 126 977 1,344 3,636 1,273

Dividend income 3,528 1,543 861 2,350 308 350 537 318 149 180 191 22 41 160 1 78

Income from dealing in foreign

currency 838 2,749 772 2,588 835 1,379 707 965 1,083 288 357 75 182 473 2,061 534

Gain on sale of securities

833 11,042 4,344 3,195 3,120 1,535 137 1,739 4,781 1,995 4,008 485 651 1,126 1,016 2,443

Un-realized gain / (loss) on

revaluation of HFT portfolio

- 18 577 16 (1) 229 - (27) - 14 (15) 1 1 (2) 4 (13)

Share of profit from joint venture / associates

- 3,399 - - - 309 89 - - - - - - - - -

Other Income 986 743 2,091 1,299 581 730 695 266 341 36 42 96 43 52 399 104

BANKING SURVEY 2015


79%

8%

7%

ABL

68%

15%

10%3%

HBL

74%

13%

7%3%

MCB

71%

17%

3%3%

4%

UBL

57%18%

3%

20%

JS

69%

9%

4%

14%

3%

Askari

76%

12%

4%4%

BAF

85%

8%

2%2%

BAH

61%12%

5%

20%

HMB

71%

12%

2%

5%9%

Faysal

44%

13%2%

3%

38%

NIB

73%

4%3%

16%

3%

SAMBA

BANKING SURVEY 2015


KEY

Net markup income Gain on sale of securities

Fees, commission and brokerage income Unrealized gain/ (loss) on revaluation HFT portfolio

Dividend income Share of profit from joint venture/associates

Income from dealing in foreign currencies Other income

62%19%

4%13%

SILK

71%

13%

2%4%

10%

SONERI

76%

12%

7%

4%

SCB

41%

17%7%

33%

SUMMIT

BANKING SURVEY 2015


Income stream of Public Banks for the year ended 2015

Income Streams

Income Streams First Women Bank Sindh Bank Bank of Punjab Bank of Khyber National Bank

Net Markup Income 697 4,481 11,064

4,428 54,387

Fees, commission and brokerage income 39 234 828

258 13,460

Dividend income 20 120 58

120 2,707

Income from dealing in foreign currency 29 69 109

139 4,899

Gain on sale of securities 296 3,063 5,014

3,063 12,283

Un-realized gain / (loss) on revaluation of HFT portfolio - - (8)

(6) 5

Share of profit from joint venture / associates - - -

- (363)

Other Income 25 6 1,635

119 2,111

BANKING SURVEY 2015


Key

Net Markup income Gain on sale of securities



Income from dealing in foreign currencies Other income

54%

3%

38%

Bank of Khyber

60%15%

3%6%

14%

National Bank

63%3%2%3%

27%

First Women Bank

56%

3%2%

38%

Sindh Bank

59%

4%

27%

9%

Bank of Punjab

BANKING SURVEY 2015


Income stream of Islamic banks for the year ended 2015

Income streams

INCOME STREAMS DIB Al Baraka Meezan Burj

Net Markup Income 4635 2478 18217 1133

Fees, commission and brokerage income 1250 439 1987 152

Dividend income 0 22 629 75

Income from dealing in foreign currency 7 161 1471 26

Gain on sale of securities 16 13 342 182

Un-realized gain / (loss) on revaluation of HFT portfolio 0 3 0 -2

Share of profit from joint venture / associates 0 0 0 0

Other Income 2 19 168 25

BANKING SURVEY 2015


Key

Net markup income Gain on sale of securities



Income from dealing in foreign currencies other income Other Income

79%

21%

DIB

79%

14%

5%

Al Baraka

71%

9%

5%11%

Burj

80%

9%

3% 6%

Meezan

BANKING SURVEY 2015


BANKING SURVEY 2015


BASEL III

BASEL III is a comprehensive set of rules framed by the BASEL committee in order to strengthen financial regulations in banks so that banks are fully compliant

with the risk management principles in order to avoid financial losses.

BASEL III aims to improve the capability of banking sector to survive during financial and economic crisis, through improvement in governance structure, risk

management and further strengthening banks transparency.

BASEL III emphasizes on capital adequacy ratio and market liquidity, moreover these standards minimizes the deficiencies faced by the banking sector throughout

the world. BASEL III standards became effective as at 31 December 2013 with the intentions to fully implement it by December 31 2019.

In this survey, we have provided a bird eye view of different banks as per the requirements of BASEL III standards. We have discussed the standards of

Conventional, Islamic and Public banks respectively. This survey compared the BASEL III standard requirements with the actual results of Banks.

BANKING SURVEY 2015


Private Banks

Conventional Banks

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%

Required

Bank Al Habib

Allied Bank Limited

Askari Bank

Bank Alfalah

Faysal Bank

Habib Metro Bank

Habib Bank Limited

JS Bank

MCB Bank

NIB Bank

Samba Bank

SCB Bank

Silk Bank

Soneri Bank

Summit Bank

UBL Bank

RequiredBank AlHabib

AlliedBank

Limited

AskariBank

BankAlfalah

FaysalBank

HabibMetroBank

HabibBank

LimitedJS Bank

MCBBank

NIB BankSambaBank

SCB Bank Silk BankSoneriBank

SummitBank

UBL Bank

Leverage Ratio 3.00% 3.78% 5.02% 2.63% 3.41% 4.26% 5.48% 5.10% 5.03% 8.17% 3.80% 12.20% 6.73% 7.74% 5.10% 3.21% 5.13%

BASEL III Leverage Ratio

BANKING SURVEY 2015


0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Required

Bank Al Habib

Allied Bank Limited

Askari Bank

Bank Alfalah

Faysal Bank

Habib Metro Bank

Habib Bank Limited

JS Bank

MCB Bank

NIB Bank

Samba Bank

SCB Bank

Silk Bank

Soneri Bank

Summit Bank

UBL Bank


AlliedBank

Limited

AskariBank

BankAlfalah

FaysalBank

HabibMetroBank

HabibBank

LimitedJS Bank MCB Bank NIB Bank

SambaBank


SummitBank

UBL Bank

Comon equity tier 1 to total Risk weighted Average requirement 6.00% 10.70% 17.08% 8.90% 9.83% 12.54% 16.72% 13.14% 12.16% 17.41% 19.15% 28.78% 17.35% 10.24% 11.66% 6.86% 10.44%

BASEL IIICommon equity tier 1

toTotal risk weighted assets requirement

BANKING SURVEY 2015


0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Required

Bank Al Habib

Allied Bank Limited

Askari Bank

Bank Alfalah

Faysal Bank

Habib Metro Bank

Habib Bank Limited

JS Bank

MCB Bank

NIB Bank

Samba Bank

SCB Bank

Silk Bank

Soneri Bank

Summit Bank

UBL Bank


AlliedBank

Limited

AskariBank

BankAlfalah

FaysalBank

HabibMetroBank

HabibBank

LimitedJS Bank MCB Bank NIB Bank

SambaBank


SummitBank

UBL Bank

Tier 1 Capital to Risk weighted Average 7.50% 10.69% 17.08% 8.90% 9.83% 12.54% 16.72% 13.14% 13.25% 17.41% 19.15% 28.78% 17.36% 12.60% 11.66% 8.74% 10.44%

BASEL IIITier 1 Capital

toRisk weighted assets

BANKING SURVEY 2015


Islamic Banks

0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00%

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BASEL IIILeverage Ratio

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Required

Bank Al Habib

Allied Bank Limited

Askari Bank

Bank Alfalah

Faysal Bank

Habib Metro Bank

Habib Bank Limited

JS Bank

MCB Bank

NIB Bank

Samba Bank

SCB Bank

Silk Bank

Soneri Bank

Summit Bank

UBL Bank


AlliedBank

Limited

AskariBank

BankAlfalah

FaysalBank

HabibMetroBank

HabibBank

LimitedJS Bank

MCBBank

NIB BankSambaBank


SummitBank

UBL Bank

Total capital to Risk weighted Average 10.25% 13.87% 20.85% 12.51% 13.54% 14.41% 18.45% 16.98% 15.23% 20.07% 12.52% 30.30% 20.72% 13.84% 15.39% 10.18% 14.68%

BASEL IIITotal capital

toRisk weighted assets

BANKING SURVEY 2015


Islamic Banks

0.00% 5.00% 10.00% 15.00% 20.00%

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BASEL III Tier 1 Capital to risk weighted average

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

0.00% 5.00% 10.00% 15.00% 20.00%

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BASEL IIITotal capital to risk weighted average

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BANKING SURVEY 2015


0.00% 5.00% 10.00% 15.00% 20.00%

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BASEL IIIComon equity tier 1 to total Risk weighted average

requirement

Required

Albaraka Bank

Meezan Bank

Dubai Islamic Bank

Burj Bank

BANKING SURVEY 2015


Public Banks

0.00% 2.00% 4.00% 6.00% 8.00% 10.00%12.00%

Required

Bank of Khyber

First Women Bank Limited

National Bank of Pakistan

Sindh Bank

Bank of Punjab

BASEL IIILeverage Ratio

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

0.00% 10.00% 20.00% 30.00% 40.00% 50.00%

Required

Bank of Khyber

First Women Bank…

National Bank of…

Sindh Bank

Bank of Punjab

BASEL III Total capital to risk weighted average

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

BANKING SURVEY 2015


0.00% 10.00% 20.00% 30.00% 40.00%

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

BASEL IIITier 1 Capital to Risk weighted Average

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

0.00% 10.00% 20.00% 30.00% 40.00%

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

BASEL IIIComon equity tier 1 to total risk weighted average requirement

Required

Bank of Khyber



Sindh Bank

Bank of Punjab

BANKING SURVEY 2015


BANKING SURVEY 2015


CREDIT RATINGS

Private Banks

Credit Rating

Long Term Short Term

ABL AA+ A1+

HBL AAA A1+

MCB AAA A1+

UBL AA+ A1+

Askari AA A1+

BAF AA A1+

BAH AA+ A1+

Faysal AA A1+

HMB AA+ A1+

JS AA A1+ NIB AA- A1+ SAMBA AA- A1

SILK A- A2

Soneri AA- A1+

SCB AAA A1+

Summit A A1

CREDIT RATINGS

BANKING SURVEY 2015


Public Banks

Credit Rating


FWBL BBB+ A2

NBP AAA A1 +

Sindh AA A1 +

BOK A A1

Islamic Banks

Credit Rating


AL Baraka A A1

DIB A+ A1

Meezan AA A1+

BANKING SURVEY 2015


Glossary

Average Advances The average of opening and closing advances at two-year ends.

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

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

Average Earning Assets The average of opening and closing earning assets at two year ends.

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

Earning Assets Deposits with treasury & other banks’ lending to financial institutions, investments and advances.

Equity Equity includes shares capital, reserves, inappropriate profit/accumulated loss, minority interest and surplus / deficit on revaluation

of assets.

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

Gross Spread Ratio Net mark-up return as a percentage of total mark-up income earned.

Non-funded Income Non-funded income comprises of non mark-up based income, which consists of fee, commission & brokerage income, income from

dealing in foreign currencies, realized and un-realized gain on sale of assets & securities, etc.

Net markup margin Mark-up / return / interest earned (before provisions) as a percentage of interest bearing assets less markup / return / interest

expensed as a percentage of interest bearing liabilities.

Operating costs 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.

BANKING SURVEY 2015


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

Provisions Total of specific and general provisions against gross advances, charge & reversal of provision against non-performing advances,

for diminution in value of investments, bad debts directly written-off and recoveries of previously written-off debts.

Return on Average Assets Net Income as a percentage of average total assets.

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

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

Fund.

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

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