Banking Survey 2010

At a Glance
At a Glance
Large Banks Assets
Loans and Advances net of provisions Rupees in million NBP HBL UBL MCB ABL BAF 146,400 119,053 93,648 46,959 31,846 57,379 495,285 301,078 254,909 231,717 215,748 121,159 113,623 1,238,234 23,051 30,339 12,385 4,402 11,489 6,498 88,164 478,887 459,750 341,510 254,565 253,103 207,152 1,994,967 27,621 16,155 24,685 21,062 15,370 14,251 119,144 60,981 44,493 21,445 27,746 16,999 12,901 184,565 1,038,018 924,699 725,390 570,482 449,966 411,804 4,120,359 Operating fixed assets & Intangible assets
Bank
Cash & bank
Investm ents
Lendings to financial institutions
Other assets
Total assets
Liabilities and Equity
Bank
Bills payable
Borrowings
Deposits
Subordinated loans
Other liabilities
Equity
Total
Rupees in million NBP HBL UBL MCB ABL BAF 8,007 9,775 5,075 10,266 4,119 4,522 41,764 19,657 40,460 47,632 25,685 20,774 13,700 167,908 832,134 747,375 567,611 431,295 371,281 354,011 3,303,707 4,281 11,986 5,494 7,567 29,328 46,921 26,557 17,952 21,237 12,308 10,356 135,331 131,299 96,251 75,134 81,999 35,990 21,648 442,321 1,038,018 924,699 725,390 570,482 449,966 411,804 4,120,359
Banking Survey 2010

2011 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. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (KPMG International), a Swiss entity.
Income Statement
Non-markup / interest income
Bank
Spread
Provisions / (reversals)
Profit Operating Operating income expenses before tax
Taxation
Profit / (loss) after tax
Rupees in million NBP HBL UBL MCB ABL BAF 43,512 46,995 34,667 36,802 22,546 13,676 198,198 9,917 7,586 8,150 3,597 4,083 2,412 35,745 18,151 12,762 10,892 6,682 5,867 3,637 57,991 51,746 52,172 37,409 39,888 24,330 14,901 220,446 27,123 25,132 19,720 13,406 11,914 12,836 110,131 24,623 27,040 17,689 26,482 12,416 2,065 110,315 6,885 10,006 6,668 9,608 4,132 898 38,197 17,738 17,034 11,021 16,874 8,284 1,167 72,118
Banking Survey 2010

Medium Size Banks Assets

Loans and Advances net of provisions Operating fixed assets & Intangible assets
Bank
Cash & bank
Investments
Other assets
Total assets
Rupees in million SCB Askari BAH HMB NIB Meezan Soneri 25,010 26,353 21,133 17,046 11,789 22,739 8,648 132,718 72,294 102,100 137,168 100,849 50,209 50,519 34,986 548,125 30,422 9,194 1,139 3,190 6,429 10,512 2,532 63,418 144,722 152,784 125,773 119,828 74,584 53,995 54,676 726,362 33,288 10,084 10,213 3,387 6,900 3,096 3,469 70,437 21,561 14,265 6,126 7,831 14,646 17,949 3,795 86,173 327,297 314,780 301,552 252,131 164,557 158,810 108,106 1,627,233
Bank
Bills payable
Borrowings
Deposits
Subordinated loans
Other liabilities
Equity
Total
Rupees in million SCB Askari BAH HMB NIB Meezan Soneri 5,692 3,090 2,990 2,573 1,335 1,767 1,858 19,305 15,914 25,555 22,579 62,530 42,362 5,829 12,371 187,140 220,188 255,908 249,774 160,314 99,112 131,068 82,017 1,198,381 1,136 5,993 4,842 3,996 1,197 17,164 32,267 8,202 5,301 6,404 3,867 7,719 1,745 65,505 52,100 16,032 16,066 20,310 13,885 12,427 8,918 139,738 327,297 314,780 301,552 252,131 164,557 158,810 108,106 1,627,233
Income Statement
Bank
Spread
Operating Operating income expenses
Profit / (loss) before tax
Taxation
Profit / loss after tax
Rupees in million SCB Askari BAH HMB NIB * Meezan Soneri 17,554 10,023 10,797 6,974 3,015 5,678 3,047 57,088 4,359 3,036 946 3,042 10,041 1,496 1,452 24,372 6,154 2,272 2,130 4,430 2,274 2,911 1,228 21,399 19,348 9,260 11,980 8,362 (4,752) 7,094 2,823 54,115 13,590 8,010 6,324 4,335 7,337 4,724 2,683 47,003 5,758 1,250 5,656 4,027 (12,089) 2,370 140 7,112 2,017 330 2,054 1,218 (2,382) 544 15 3,796 3,741 920 3,602 2,809 (9,707) 1,826 125 3,316
* Does not include write off of goodwill amounting to Rs. 24,221 million which was charged directly to equity as allowed by SBP.
Banking Survey 2010

Small Banks Assets

Bank
Cash & bank
Investments
Other assets
Total assets
Rupees in million Silk Summit ** Albaraka * HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB 3,504 4,423 11,870 10,252 6,583 5,101 3,605 6,654 3,264 3,217 2,446 1,725 4,760 1,436 4,928 3,426 77,194 12,965 20,204 15,618 6,513 19,853 21,014 13,732 5,945 9,411 13,702 11,091 5,051 2,046 3,430 160,575 1,051 80 16,077 2,562 1,646 4,513 1,021 1,745 3,643 1,389 2,680 6,223 926 1,014 110 44,680 44,354 38,771 26,897 22,242 18,238 17,437 16,670 22,765 19,646 13,978 12,138 5,616 3,246 6,308 2,981 478 271,765 2,443 2,782 2,732 266 1,121 928 2,067 1,704 2,180 2,883 1,001 647 110 188 30 23 21,105 8,286 5,995 3,567 1,589 2,437 2,155 4,449 1,800 3,233 1,961 2,446 1,957 1,050 415 91 164 41,595 72,603 72,175 60,764 56,939 50,794 48,281 45,036 39,889 39,479 39,384 30,511 17,676 17,435 12,703 9,044 4,201 616,914
Bank
Bills payable
Borrowings
Deposits
Subordinated loans
Other liabilities
Equity
Total
Rupees in million Silk Summit ** Albaraka * HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB 837 357 428 1,341 281 402 563 412 313 370 116 87 2,641 102 9 5 8,264 9,871 5,275 2,757 1,256 2,895 7,193 353 950 5,035 5,524 6,535 287 444 967 1,868 322 51,532 55,706 61,537 49,324 46,461 36,981 32,302 38,198 31,415 29,479 26,276 14,872 12,636 6,066 10,195 2,350 848 454,646 1,355 1,733 2,136 1,682 1,237 1,916 1,156 1,064 506 1,376 1,062 340 3,010 333 117 25 19,048 4,834 3,273 6,119 6,199 9,400 6,468 4,766 6,048 4,146 5,838 7,926 4,326 5,274 1,106 4,700 3,001 83,424 72,603 72,175 60,764 56,939 50,794 48,281 45,036 39,889 39,479 39,384 30,511 17,676 17,435 12,703 9,044 4,201 616,914
Banking Survey 2010

Income Statement
Bank
Spread
Taxation
Rupees in million Silk Summit ** Albaraka * HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB 849 968 540 2,292 1,282 1,635 1,749 1,942 555 1,045 1,034 537 741 611 103 (13) 15,870 228 2,231 764 364 (323) 268 (7) 181 937 136 18 406 25 77 (22) 5,283 1,185 623 247 1,006 60 360 207 366 409 333 321 64 1,221 57 82 13 6,554 1,806 (639) 23 2,934 1,665 1,261 1,964 2,127 27 1,241 1,338 195 1,937 591 186 22 16,678 3,041 3,251 1,596 2,176 952 2,486 1,919 2,109 1,105 1,864 1,469 1,020 653 536 115 59 24,351 (1,235) (3,890) (1,573) 758 713 (1,225) 45 18 (1,078) (623) (131) (825) 1,284 55 71 (37) (7,673) (104) (858) (533) 266 150 (426) (2) 10 (35) (215) (11) (289) 450 31 23 (1,543) (1,131) (3,032) (1,040) 492 563 (799) 47 8 (1,043) (408) (120) (536) 834 24 48 (37) (6,130)
* The assets, liabilities and equity figures of Al-Baraka Bank (Pakistan) Limited, formerly Emirates Global Islamic Bank Limited (the Bank), represent merged number of the Bank and Pakistan Branches of AlBaraka (the Branches). However, profit and loss figures for the year ended 31 December 2009 and 31 December 2008 represent the Bank and for 2010 it represents the Bank and the results of operations of the Branches from the effective date of amalgamation i.e. 29 October 2010. ** The figures for Summit Bank Limited, formerly Arif Habib Bank Limited represents merged financial statements of Arif Habib Bank Limited and Atlas Bank Limited for current as well for prior years.
Banking Survey 2010

Islamic Banks Assets

Bank
Cash & bank
Investments
Other assets
Total assets
Rupees in million Meezan Albaraka * Islami DIB DI 22,739 11,870 3,605 6,654 1,725 46,593 50,519 15,618 13,732 5,945 5,051 90,865 10,512 80 4,513 1,021 2,680 18,806 53,995 26,897 16,670 22,765 5,616 125,943 3,096 2,732 2,067 1,704 647 10,246 17,949 3,567 4,449 1,800 1,957 29,722 158,810 60,764 45,036 39,889 17,676 322,175
Bank
Bills payable
Borrowings
Deposits
Subordinated loans
Other liabilities
Equity
Total
Rupees in million Meezan Albaraka * Islami DIB DI 1,767 428 563 412 87 3,257 5,829 2,757 353 950 287 10,176 131,068 49,324 38,198 31,415 12,636 262,641 7,719 2,136 1,156 1,064 340 12,415 12,427 6,119 4,766 6,048 4,326 33,686 158,810 60,764 45,036 39,889 17,676 322,175
Income Statement
Bank
Spread
Taxation
Rupees in million Meezan Albaraka * Islami DIB DI 5,678 540 1,749 1,942 537 10,446 1,496 764 (7) 181 406 2,840 2,911 247 207 366 64 3,795 7,094 23 1,964 2,127 195 11,403 4,724 1,596 1,919 2,109 1,020 11,368 2,370 (1,573) 45 18 (825) 35 544 (533) (2) 10 (289) (270) 1,826 (1,040) 47 8 (536) 305
* The assets, liabilities and equity figures of Al-Baraka Bank (Pakistan) Limited, formerly Emirates Global Islamic Bank Limited (the Bank), represent merged number of the Bank and Pakistan Branches of AlBaraka (the Branches). However, profit and loss figures for the year ended 31 December 2009 and 31 December 2008 represent the Bank and for 2010 it represents the Bank and the results of operations of the Branches from the effective date of amalgamation i.e. 29 October 2010.
Banking Survey 2010

Profitability
PROFITABILITY The profit before tax of banks included in this survey has increased by 21.6% to Rs. 109.8 billion in 2010 from Rs. 90.3 billion in 2009. The main contributors to the increase were HBL Rs. 5.7 billion, SCB Rs. 4.2 billion and NBP Rs. 3.4 billion and NIB with a loss of Rs. 12.1 billion compared to profit of Rs. 1.6 billion last year. However, loss before tax of small banks included in this survey has decreased by approximately Rs. 9.0 billion. The main contributors to increase in profitability comprise of: Rupees in billions 25.03 (1.1) 15.6 (19.2)
Increase in spread Decrease in non mark-up/ interest income Decrease in provisions/write off (Increase) in operating expenses
Certain banks have used the benefit of Forced Sale Value of commercial, residential and industrial properties held as collateral as allowed by State Bank of Pakistan. The major beneficiaries and impact on provisions/profit before tax is as follows: Rupees in billions 0.820* 0.203 0.139 0.627 0.677 1.020 0.233 0.218 1.029* 1.117
NBP BAF SCB Askari HMB NIB Meezan Soneri Silk Albaraka *Impact after tax is disclosed in the audited financial statements which has been
grossed-up for tax impact @ 35%.
Banking Survey 2010

Large Banks HBL and NBP posted highest profit growth of 26.5% and 16.2%, respectively, from 2009. HBLs spread and non mark-up/interest income have increased by Rs. 4.3 billion and Rs. 1.6 billion, provisions have decreased by Rs. 1.5 billion and operating expenses increased by Rs. 1.8 billion. NBPs spread has increased by Rs. 5.8 billion, non mark-up/interest income and provisions have decreased by Rs. 0.96 billion and Rs. 1.9 billion and operating expenses have increased by
27,040 26,482
24,623
23,349
30,000 25,000
Rupees in millions
21,382
21,199
17,689
14,392
20,000 15,000 10,000 5,000 -00 NBP HBL 2010
12,416
10,572
Operating income less operating cost (i.e. profit before tax).
2,065
438
UBL 2009
MCB
ABL
BAF
Rs. 3.4 billion.
Medium Size Banks SCB and BAH posted highest profit growth of 280% and 25.4%, respectively, from 2009. SCBs spread has increased by Rs. 1.0 billion, non mark-up/interest income and provisions have decreased by Rs. 0.77 billion and Rs. 5.1 billion and operating expenses increased by Rs. 1.1 billion. BAHs spread and non mark-up/interest income have increased by Rs. 1.7 billion and Rs. 0.29 billion, provisions have decreased by Rs. 0.24 billion and operating expenses increased by Rs. 1.1 billion.
1,516 5,758
4,512 5,656
4,227 4,027
10,000
2,429 2,370
1,600 1,250
1,553
Rupees in millions
5,000 -00
190 140
Askari
SCB
BAH
HMB
Soneri
NIB
Meezan
(5,000) (10,000)
(12,089)
(15,000)
2010
2009
Banking Survey 2010

Small Banks Loss before tax of small banks included in this survey has decreased approximately by Rs. 9.0 billion, i.e. Rs. 7.7 billion for 2010 compared to Rs. 17.1 billion for 2009. Loss before tax of Silk Bank and Summit Bank reduced by Rs. 3.0 billion and Rs. 1.2 billion, respectively. BOK has recorded profit before tax of Rs. 0.71 billion for 2010 compared to loss before tax of Rs. 0.80 billion for 2009.
1,243 1,284
2,000
321 758 713 352
1,000
66 71
45
18
55
Rupees in millions
-00
(1,068) SAMBA (131) (1,449) JS (623) (2,157) MYB (1,078) (2,344) Barclays (1,225) (799)
Summit
DB
Albaraka (1,573)
FWB
Silk
(1,235)
BOK
DI (825)
HSBC
Islami
DIB
OIB (37)
BOT
(1,000) (2,000) (3,000) (4,000) (5,000) (6,000)
(580)
(405)
(799)
(59)
(86)
Islamic Banks
2,429 2,370
(5,068) (3,890) (4,252)
2010
2009
3,000 2,500 2,000 1,500 1,000 500 -00 (500) (1,000) (1,500) (2,000)
Rupees in millions
352
45
18
Meezan
Albaraka
(799)
Islami
(580)
DIB
(825)
DI
(405)
(1,573)
2010
2009
Banking Survey 2010

Return on Average Equity

RETURN ON AVERAGE EQUITY The return on average equity (ROAE), profit before tax as a percentage of average equity, of banks included in the survey has increased by 1.4% to 17.0% for 2010. Large Banks ROAE of Large Banks has increased by 0.79% to 26.3% in 2010.
In percentages
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0
40.5 37.7
35.3 34.3
28.4 29.9
24.7 24.8
18.8 19.5
Profit before tax as a percentage of average equity.
2.3 9.5
NBP
HBL 2010
UBL 2009
MCB
ABL
BAF
Medium Size Banks ROAE of Medium Size Banks has decreased to 4.81% from 11.01% mainly due to NIB results.
In percentages
70.0 50.0
3.3 11.4 11.4 8.1
35.0 37.5
29.3 20.9
25.0 20.6
30.0 10.0 (10.0) (30.0) (50.0)
3.9
2.6 1.7
Askari
SCB
BAH
HMB
Soneri
NIB (43.8)
Meezan
2010
2009
Banking Survey 2010
11
Small Banks Small Banks ROAE remained negative 2010: 9.59% (2009: 22.16%).
In percentages
70.0
25.4 24.6 9.3 6.1 12.9 6.3 0.3 5.0
0.9
20.0
1.6 1.6
(17.0) SAMBA (1.7)
Barclays (18.4)
Summit
MYB (23.3)
DB
(21.1) Albaraka (32.7) (63.8) (80.0)
FWB
Silk
(37.4) (138.2)
BOK (15.0)
JS (10.8)
DI (18.0)
HSBC
Islami (11.7)
DIB
OIB (1.3)
BOT
(30.0)
(9.1)
(26.5)
(2.1)
(7.9)
(38.3)
(35.6)
(80.0)
(130.0)
(180.0)
2010
2009
Islamic Banks Islamic Banks ROAE is 0.11% compared to 3.7% for the year ended 31 December 2009.
In percentages 70.0
29.3 20.9
50.0
6.3
30.0 10.0 (10.0) (30.0) (50.0)
0.9 (21.1) Albaraka (32.7)
0.3 (9.1) DI (18.0)
Albaraka equity numbers represent merged numbers at 31 December 2010.
Meezan
(11.7) Islami
2009
DIB
2010
12
Banking Survey 2010

Spread
Spread The overall spread of the industry for last five years as disclosed in SBP Statistical Bulletin was as follows:
2005
Weighted average lending rate Weighted average deposit rate Banking spread 9.53
2006
11.16
2007 2008 In percentage

11.11 14.45
2009
13.49
2010
*13.52
4.23
5.58
4.97
6.70
6.14
*5.91
5.30
5.58
6.14
7.75
7.35
7.61
* As at December 2010
(Source: SBP Statistical Bulletin)
The average spread of banks included in this survey was 7.10% (2009: 7.22%). Large Banks Average spread of large size banks in 2010 was 7.71% compared to 7.69% in 2009.
Difference between markup/return/ interest earned on loans and advances as a percentage of average loans and
In percentages
10.1 8.0 8.9 8.0 8.0
7.7
7.7
7.6
7.5
advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends.
6.9
6.9
NBP
6.8
HBL
UBL 2010
MCB 2009
ABL
BAF
Banking Survey 2010
13
Medium Size Banks Average spread of medium banks in 2010 was 5.93% compared to 6.63% in 2009.
In percentages
Difference between markup/return/ interest earned on loans and advances as a percentage of average loans and
10.2
9.1
advances at two year ends and mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends.
7.2
6.9
6.5
6.4 4.5
6.1
5.4
5.3 3.5
4.5
4.2
4.1
SCB
Askari
BAH
HMB
2010 2009
NIB
Meezan
Soneri
Small Banks Average spread of small banks in 2010 was 5.73% compared to 4.97% in 2009.
In percentages
15.2
Difference between markup/return/ interest earned on loans and advances as a
10.2
10.0
9.8
9.3
percentage of average loans and

7.7 7.1 7.6 6.6
8.5
advances at two year ends and

5.0
6.8 3.5 4.8 5.1
6.7 6.2
6.6
mark-up/return/ interest expense of deposits as a percentage of average deposits at two year ends.
4.9
4.7 3.2 2.1 1.6 Summit
4.7
3.9 4.4
4.2 2.8
4.0 Albaraka
3.8 1.9
2.3 SAMBA
Silk
Barclays
JS
BOK
Islami
DIB
HSBC
MYB
DB
OIB
BOT
FWB
DI
2010
2009
14
Banking Survey 2010

Islamic Banks Average spread of Islamic banks in 2010 was 6.91% compared to 6.83% in 2009.
Difference between markup/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.
In percentages
15.2 9.3 7.6
7.2 2.1
Meezan
6.9
6.6
4.9
Albaraka 2010
4.0
2.3
Islami 2009
DIB
DI
Banking Survey 2010
15
Net Interest Income Ratio

Net Interest Income Large Banks Average net interest income of large size banks remained at 5% in both 2010 and 2009.
In percentages
7.3
6.7
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.
5.5
5.3
5.2
5.1
5.0
4.9
Medium Size Banks

Average net interest income of medium banks in 2010 was 3.8% compared to 4.0% in 2009.
In percentages
4.4
5.8
NBP
4.3
5.8
3.5
3.1
HBL
UBL 2010
MCB 2009
ABL
BAF
4.6
4.5
4.0
3.7
3.7
3.6
3.5
2.8
2.8
2.8
2.7
2.7
Askari
SCB
BAH
2010
HMB
Soneri
2009
Banking Survey 2010
NIB
Meezan
17
Small Banks Average net interest income of small banks in 2010 was 2.3% compared to 2.1% in 2009.
SAMBA Barclays Summit MYB DB Albaraka FWB Silk DI BOK JS Islami DIB HSBC OIB BOT 1.46 1.98 1.34 2.24 1.84 0.86 3.22 3.40 2.03 2.74 2.50 1.78
2010 In percentages
5.20 4.61 3.62 4.60
4.47 4.45
4.41 3.01
2.39 2.56
2.51
1.71 1.95
1.70
1.56
1.28
(3.18) (3.93)
(5.60) (5.05)
2009
Islamic Banks Average net interest income of Islamic banks in 2010 was 3.7% compared to 4.0% in 2009.
In percentages
5.2 4.6 4.6 4.6 4.5
3.6
3.0
1.8 0.9
1.7
Meezan
Albaraka 2010
Islami 2009
DIB
DI
18
Banking Survey 2010

Non-Funded Income
NON-FUNDED INCOME Non-funded income as a percentage of net interest income, of banks included in this survey, has decreased to 26.9% in 2010 from 28.2% in 2009. Large Banks income declined from 26.2% in 2009 to 24.9% in 2010; whereas the ratio of Medium Size Banks declined from 30.9% to 30.5%. In case of Small Banks, it decreased to 38.9% in 2010 from 46.7% in 2009 and in case of Islamic Banks it increased to 30.6 in 2010 from 28.7 in 2009.
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 markup/return/interest earned (before provisions) less markup/return/interest expensed.
Non-funded income to net interest income Large Banks

In percentages
39.7
33.6
38.0
SCB
33.4
Medium Size Banks

In percentages
32.9
30.0
32.7
29.8
24.8
24.2
19.2
15.1
14.7
12.8
NBP
HBL
UBL
2010 2009
MCB
ABL
BAF
52.0
49.0
45.5
41.1 30.3
38.3
34.6
25.6 19.0
Askari
18.1
17.6
BAH
2010
17.1
HMB
2009
NIB
Meezan
Soneri
Banking Survey 2010
19
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.
Small Banks
In percentages
1,004.9 37.4 79.6 184.3 150.1 144.5 70.8 63.2 51.8 43.9 44.9 42.8
Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
35.6 11.8
33.4 32.1 Summit
31.0 25.0
22.3 26.8
14.9 22.3 Barclays
20.0 21.0
19.8 18.7
11.9 6.5
10.0 11.5
Islamic Banks
Silk
FWB
Albaraka
Islami
BOT
BOK
JS
OIB
DI
DB
MYB
SAMBA
HSBC
DIB
(95.4) (100.0)
2010
2009
In percentages
44.9
42.8
Meezan
41.1 30.3
35.6 19.8 18.7 11.8 11.5 10.0
Albaraka
2010
Islami
2009
DIB
DI
20
Banking Survey 2010

Costs
COSTS
Operating Cost to Net Interest Income ratio Operating cost to net interest income ratio of the banks included in the survey has increased to 66.9% in 2010 from 65.9% in 2009. Large Banks Operating costs of Large Banks increased by 12.2% while net interest income increased by 10.6%.
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
NBP HBL UBL MCB ABL BAF
Operating cost Net interest income 2010 2009 2010 2009 Rupees in millions 27,123 23,767 43,512 37,677 25,132 23,359 46,995 42,670 19,720 18,911 34,667 33,422 13,406 11,070 36,802 35,786 11,914 9,719 22,546 18,724 12,836 11,346 13,676 10,845 110,131 98,172 198,198 179,124
Operating Cost to Net Interest Income
In percentages
104.6 93.9
63.1
62.3
56.9
56.6
54.7
53.5
52.8
51.9
36.4
30.9
Large Banks operating cost to net interest income ratio increased to 55.6% from 54.8 % in 2009.
NBP HBL UBL
2010
MCB
2009
ABL
BAF
Banking Survey 2010

21
Medium Size Banks Operating costs of Medium Size Banks increased by 18.8% while net interest income increased by 4.3%.
Operating cost Net interest income 2010 2009 2010 2009 Rupees in millions 13,590 12,477 17,554 16,516 8,010 7,159 10,023 9,048 6,324 5,208 10,797 9,067 4,335 3,657 6,974 6,740 7,337 5,357 3,015 5,503 4,724 3,627 5,678 5,136 2,682 2,079 3,047 2,734 47,002 39,564 57,088 54,744
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.
SCB Askari BAH HMB NIB Meezan Soneri
In percentages
243.3 97.4 88.0 83.2
79.9
79.1
77.4
76.0
75.5
70.6
62.2
Medium Size Banks operating cost to net interest income ratio increased to 82.3% from 72.3 % in 2009.
58.6
57.4
54.3
SCB
Askari
BAH
2010
HMB
2009
NIB
Meezan
Soneri
22
Banking Survey 2010

Small Banks Operating costs of Small Banks decreased by 0.83% while net interest income increased by 29.6%.
Operating cost Net interest income 2010 2009 2010 2009 Rupees in millions 3,041 2,663 849 57 3,251 3,238 968 746 1,595 1,436 540 679 2,176 2,200 2,292 1,972 951 920 1,282 1,000 2,486 3,977 1,635 1,223 1,919 1,766 1,749 955 2,109 1,739 1,942 1,841 1,105 1,093 555 486 1,864 1,736 1,045 720 1,468 1,591 1,034 620 1,020 686 537 481 653 871 741 869 536 462 611 488 115 115 103 131 59 58 (13) (19) 24,348 24,551 15,870 12,250
In percentages
4,646.1
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions.
Silk Summit Albaraka HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB
Small Banks operating cost to net

87.7 111.7 434.3 335.8
interest income ratio improved to 153.4% from 200.4 % in 2009.
358.2
325.1 152.0
211.5 295.4
256.8 142.0
241.0 178.4
199.1
142.7 189.9
184.9 109.7
111.6 94.9
94.5 108.6
100.2 88.1
224.8
94.6 87.7
92.0 74.2
SAMBA
Barclays
Summit
MYB
DB
FWB
Albaraka
Silk
JS
DI
BOK
HSBC
Islami
2010
DIB
OIB
(307.5) (453.8)
BOT
2009
Banking Survey 2010
23
Islamic Banks Operating costs of Islamic Banks increased by 22.8% while net interest income increased by 14.9%.
Operating cost includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Net interest income means markup/return/interest earned (before provisions) less markup/return/interest expensed.
Meezan Albaraka Islami DIB DI
Operating cost Net interest income 2010 2009 2010 2009 Rupees in millions 4,724 3,627 5,678 5,136 1,595 1,436 540 679 1,919 1,766 1,749 955 2,109 1,739 1,942 1,841 1,020 686 537 481 11,367 9,254 10,446 9,092
In percentages
211.5 109.7
295.4
189.9
184.9
142.7
108.6
94.5
Islamic Banks operating cost to net interest income ratio increased to 108.8% from 101.8% in 2009.
Meezan
83.2
70.6
Albaraka 2010
Islami 2009
DIB
DI
24
Banking Survey 2010

Staff cost Staff costs remain one of the most significant costs for the banks, averaging approximately 48.8% (2009: 48.1%) of total operating expenses. Large Banks
Staff cost includes salaries, allowances, etc., staff retirement benefits.
NBP HBL UBL MCB ABL BAF Staff cost 2010 2009 Rupees in millions 18,517 15,700 13,761 13,004 8,192 8,570 4,633 3,091 6,710 5,707 5,554 4,985 57,367 51,057 Number of staff 2010 2009 Numb ers 16,524 17,296 13,269 13,211 11,847 11,643 13,714 13,529 12,633 11,726 10,009 9,551 77,996 76,956 Cost per staff 2010 2009 Rupees in thousand 1,121 908 1,037 984 691 736 338 228 531 487 555 522
Medium Size Banks

SCB Askari BAH HMB NIB Meezan Soneri Staff cost 2010 2009 Rupees in millions 4,539 3,986 4,259 4,162 2,809 2,325 2,031 1,683 3,916 2,554 2,130 1,650 959 722 20,643 17,082 Number of staff 2010 2009 Numb ers 4,920 5,111 7,766 7,361 5,245 4,645 2,947 2,715 3,642 6,427 4,451 3,745 2,559 2,097 31,530 32,101 Cost per staff 2010 2009 Rupees in thousand 923 780 548 565 536 501 689 620 1,075 397 479 441 375 344
Small Banks
Silk Summit Albaraka HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB Staff cost 2010 2009 Rupees in millions 1,661 1,406 1,311 1,464 598 511 927 885 543 401 1,073 1,300 648 571 904 727 454 418 699 637 646 628 317 216 308 360 313 279 53 44 21 21 10,476 9,868 Number of staff 2010 2009 Numb ers 2,179 1,959 1,383 1,753 1,322 867 714 788 1,198 762 692 1,202 1,347 1,471 990 984 904 930 1,255 1,200 810 787 583 510 108 107 585 569 42 42 27 32 14,139 13,963 Cost per staff 2010 2009 Rupees in thousand 762 718 948 835 452 589 1,298 1,123 453 526 1,551 1,082 481 388 913 739 502 449 557 531 798 798 544 424 2,852 3,364 535 490 1,262 1,048 778 656
Islamic Banks
Meezan Albaraka Islami DIB DI Staff cost 2010 2009 Rupees in millions 2,130 1,650 598 511 648 571 904 727 317 216 4,597 3,675 Number of staff 2010 2009 Numb ers 4,451 3,745 1,322 867 1,347 1,471 990 984 583 510 8,693 7,577 Cost per staff 2010 2009 Rupees in thousand 479 441 452 589 481 388 913 739 544 424
Albaraka number of staff represents merged numbers after amalgamation.
Banking Survey 2010

25
Remuneration of Executives Large Banks

Remuneration of executives
NBP HBL* UBL* MCB ABL BAF CEO Remuneration Remuneration of Executives 2010 2009 2010 2009 Rupees in thousands 69,645 64,262 2,003,914 1,105,710 22,994 13,548 3,263,089 2,540,871 73,553 74,555 4,365,676 4,002,538 57,434 60,619 2,653,782 1,819,211 94,531 46,326 1,901,283 1,421,909 26,804 14,573 1,939,201 1,555,593 344,961 273,883 16,126,945 12,445,832 Number of Executives 2010 2009 Numb ers 796 507 1,576 1,206 1,360 1,246 734 616 845 620 869 718 6,180 4,913
Medium Size Banks

SCB Askari BAH HMB NIB Meezan Soneri CEO Remuneration Remuneration of Executives 2010 2009 2010 2009 Rupees in thousands 277,516 108,811 2,373,327 1,868,277 22,391 19,137 1,180,666 935,073 18,859 18,091 1,097,937 839,027 52,450 52,443 1,058,892 817,386 31,203 31,175 1,220,836 1,054,747 72,519 59,851 569,602 409,076 106,933 27,750 167,275 146,263 581,871 317,258 7,668,535 6,069,849 Number of Executives 2010 2009 Numb ers 822 664 575 495 516 404 565 434 505 511 242 176 94 80 3,319 2,764
Small Banks
Silk Summit Albaraka HSBC BOK Barclays * Islami DIB MYB JS SAMBA DI DB* FWB BOT OIB CEO Remuneration Remuneration of Executives 2010 2009 2010 2009 Rupees in thousands 52,771 44,044 901,615 725,636 22,728 19,818 655,176 757,117 57,575 34,134 259,327 221,347 74,815 26,828 447,874 433,358 6,945 6,123 103,032 60,584 29,292 29,683 497,391 602,876 13,800 13,800 166,640 171,243 50,400 35,917 463,755 433,649 13,475 13,742 94,936 97,615 14,788 16,804 357,554 323,359 30,372 29,953 319,592 305,042 25,668 7,590 117,357 110,742 13,769 19,240 156,667 119,953 12,137 13,570 68,141 57,691 10,950 8,991 19,987 14,753 1,620 1,556 3,172 3,451 431,105 321,793 4,632,216 4,438,416 Number of Executives 2010 2009 Numb ers 295 245 321 282 261 127 142 146 45 24 184 247 100 107 172 163 52 52 190 142 158 151 81 59 49 44 41 30 5 5 3 3 2,099 1,827
Islamic Banks
Meezan Albaraka Islami DIB DI CEO Remuneration Remuneration of Executives 2010 2009 2010 2009 Rupees in thousands 72,519 59,851 569,602 409,076 57,575 34,134 259,327 221,347 13,800 13,800 166,640 171,243 50,400 35,917 463,755 433,649 25,668 7,590 117,357 110,742 219,962 151,292 1,576,681 1,346,057 Number of Executives 2010 2009 Numb ers 242 176 261 127 100 107 172 163 81 59 856 632
* In addition to above, Chief Executive Officer and executives are also entitled to certain short/long term employee
benefits which includes cash award/special bonus, etc. The aggregate amount of these benefits is disclosed in the respective financial statements.
26
Banking Survey 2010

Assets
ASSETS During the year total assets of banks under review have increased by 9.94% from Rs. 5,789.2 billion at 31 December 2009 to Rs. 6,364.5 billion at 31 December 2010. The growth in Large, Medium, and Small Banks was 9.3%, 9.5% and 15.8%, respectively.
Total Assets 7,000.0 6,000.0 5,000.0 4,000.0 3,000.0 2,000.0 1,000.0 -00
6,364.5
5,789.2
4,120.4
Rupees in billion
Large Banks
* Islamic Banks are already included in categories according to size of the banks.
3,770.0
Medium Size Banks 2010
1,627.2
1,486.6
Small Banks
616.9
532.6
2009
Islamic Banks*
322.2
257.2
Total*
Large Banks
Total Assets
946.3 1,038.0
863.9 924.7
1,200.0
640.4 725.4
Rupees in billion
1,000.0 800.0 600.0 400.0 200.0 -00 NBP
511.7 570.5
418.3 450.0
389.3 411.8
HBL
2010
UBL
2009
MCB
ABL
BAF
Banking Survey 2010

27
Medium Size Banks

Total Assets
317.6 327.3
314.8
249.8 301.6
350.0 300.0
Rupees in billion
254.4
237.2 252.1
206.9 164.6
250.0 200.0 150.0 100.0 50.0 -00
125.5 158.8
95.3 108.1 Soneri
Askari
HMB
NIB
SCB
2010
BAH
Meezan
2009
Small Banks
Total Assets
68.7 72.6 69.1 72.2
80.0 70.0
60.8
51.7 56.9
50.8
Rupees in billion
49.1
42.5 48.3
60.0 50.0 40.0 30.0 20.0 10.0 -00
45.0
35.4 39.9
35.5 39.5
32.9 39.4
38.8
34.3
23.7 30.5
13.0 17.7
15.2 17.4
10.3 12.7
8.5 9.0
3.9 4.2
DI
DIB
Summit
Barclays
HSBC
OIB
MYB
Islami
SAMBA
FWB
Albaraka
JS
DB
Silk
BOT
BOK
2010
2009
28
Banking Survey 2010

Islamic Banks
Total Assets
158.8
180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 -00
125.5
Rupees in billion
60.8
Meezan
Albaraka
2010
49.1
Islami
2009
45.0
39.9
35.4
34.3
17.7
13.0
DIB
DI
Banking Survey 2010
29
Loans and Advances

LOANS AND ADVANCES Total loans and advances of banks under review have increased by 5.1% (2009: 2.2%) from Rs. 2,849.1 billion at 31 December 2009 to Rs. 2,993.1 billion at 31 December 2010. However, this change is not reflective of credit growth as a significant amount is lent under various instruments (term finance certificates, sukuk certificates, bonds, etc.). These instruments are classified as investments. The growth in loans and advances, if considered with growth in above unlisted debts securities, is approximately 7.9% (2009: 8.6%) 2010 3.6% 16.4% 20.8% 43.6% 2009 8.8% 8.2% 8.1% 18.2%
Large Banks Medium Size Banks Small Banks Islamic Banks Growth in Loans and Advances Large Banks
Annual increase 2010-09 2009-08 In percentages 0.7 15.1 1.1 (0.4) (5.7) (4.2) 0.5 (3.4) 6.6 11.4 10.2 (1.9) 1.2 3.0 2010
Advances 2009 2008 Rupees in millions 478,887 475,338 413,076 459,750 454,662 456,356 341,510 362,080 377,945 254,565 253,248 262,134 253,103 237,383 213,020 207,152 188,021 191,572 1,970,732 1,914,103
1,994,967
Annualised Increase (2010 08)

In percentages BAF ABL (1.5) MCB (4.9) UBL HBL NBP 0.4 7.7 4.0 9.0
Banking Survey 2010

31
Medium Size Banks

Annual increase 2010-09 2009-08 In percentages 11.8 0.4 13.1 4.8 18.7 5.8 17.1 (5.5) (11.2) 4.6 29.5 5.5 12.2 2.4 12.2 2.1 Advances 2009 2008 Rupees in millions 144,722 129,460 128,992 152,784 135,040 128,818 125,773 105,985 100,217 119,828 102,293 108,261 74,584 84,021 80,344 53,995 41,710 39,529 54,676 48,727 47,575 726,362 647,236 633,736
2010

In percentages
Soneri
7.2
Meezan
16.9
(3.7)
NIB
HMB
5.2
BAH
12.0
Askari
8.9
SCB
5.9
32
Banking Survey 2010

Small Banks
Annual increase 2010-09 2009-08 In percentages 38.2 3.2 2.8 4.2 11.2 9.2 (4.3) (8.1) 54.1 (6.4) (3.3) 86.3 59.4 64.9 10.6 13.9 12.7 (16.8) 19.6 20.8 24.8 57.8 17.9 (15.5) (6.1) (45.4) 92.7 (0.9) 35.6 (46.3) 23.5 39.7 17.6 6.0 Advances 2009 2008 Rupees in millions 44,354 32,097 31,087 38,771 37,724 36,210 26,897 24,194 22,155 22,242 23,248 25,303 18,238 11,836 12,644 17,437 18,034 9,679 16,670 10,457 6,343 22,765 20,590 18,074 19,646 17,428 20,940 13,978 11,690 9,680 12,138 9,723 6,163 5,616 4,764 5,640 3,246 3,457 6,335 6,308 3,274 3,304 2,981 2,199 4,093 478 387 277 231,102 217,927
2010
271,765

In percentages
OIB (14.7) BOT FWB (28.4) (0.2) DB DI 40.3 20.2 38.2 31.4
SAMBA JS (3.1) MYB DIB Islami Barclays BOK (6.2) HSBC Albaraka Summit Silk 1.4 19.4 10.2 20.1 34.2 12.2
62.1
Banking Survey 2010

33
Islamic Banks
Annual increase 2010-09 2009-08 In percentages 29.5 5.5 11.2 9.2 59.4 64.9 10.6 13.9 17.9 (15.5) 23.8 10.9 Advances 2009 2008 Rupees in millions 53,995 41,710 39,529 26,897 24,194 22,155 16,670 10,457 6,343 22,765 20,590 18,074 5,616 4,764 5,640 101,715 91,741
2010
125,943

In percentages (0.2) DI DIB Islami Albaraka Meezan 10.2 16.9 12.2 62.1
34
Banking Survey 2010

Market Share of Loans and Advances

2010 2009 In percentages 16 17 15 16 11 13 9 9 8 8 7 7 5 5 5 5 4 4 4 4 2 3 13 11 100 100 2010 2009 Rupees in millions 478,887 475,338 459,750 454,662 341,510 362,080 254,565 253,248 253,103 237,383 207,152 188,021 144,722 129,460 152,784 135,040 125,773 105,985 119,828 102,293 74,584 84,021 380,436 321,539 2,993,094 2,849,070
NBP HBL UBL MCB ABL BAF SCB Askari BAH HMB NIB Less than 3%
Less than 3% 13% NIB 2% HMB 4% BAH 4% Askari 5% SCB 5%
NBP 16%
HBL 15%
UBL 11% BAF 7% ABL 8% MCB 9%
The percentages indicated above represents rounded numbers.
Banking Survey 2010

35
Banks with less than 3% market share

2010 2009 In percentages 1.8 1.5 1.8 1.5 1.3 0.9 0.7 0.6 0.6 0.6 0.8 0.7 0.5 0.4 0.2 0.1 0.2 0.1 0.0 13 1.7 1.1 1.3 0.8 0.8 0.4 0.6 0.4 0.7 0.6 0.4 0.3 0.2 0.1 0.1 0.1 0.0 11 2010 2009 Rupees in millions 53,995 41,710 54,676 44,354 38,771 26,897 22,242 18,238 17,437 16,670 22,765 48,727 32,097 37,724 24,194 23,248 11,836 18,034 10,457 20,590
Meezan Soneri Silk Summit Albaraka HSBC BOK Barclays Islami DIB
MYB
JS SAMBA DI
19,646
13,978 12,138 5,616
17,428
11,690 9,723 4,764
DB FWB BOT OIB
3,246 6,308
2,981 478 380,436
BOT 0.1% OIB 0.02% Meezan 1.8%
3,457 3,274
2,199 387 321,539
SAMBA 0.4% JS 0.5%
DI 0.2%
DB 0.1%
FWB 0.2%
MYB 0.7% DIB 0.8% Islami 0.6% Barclays 0.6% BOK 0.6%
Soneri 1.8%
Silk 1.5%
HSBC 0.7%
Albaraka 0.9%
Summit 1.3%
36
Banking Survey 2010

Liquidity (Average Advances to Average Deposits)

LIQUIDITY (AVERAGE ADVANCES TO AVERAGE DEPOSITS) The total average advances to total average deposit ratio of banks included in this survey has decreased to 58.28% from 64.53% in 2009. As explained earlier, this decline is not reflective of true position due to classification of advances against instruments as investments. If these are considered as part of advances, there is no significant change in the ratio in 2010. Large Banks
Advances* 2009 464,286 425,623 342,689 242,320 219,134 178,823 1,872,875 Deposits 2009 727,513 682,750 503,832 367,581 328,873 324,743 2,935,292
2010 NBP HBL UBL MCB ABL BAF 469,794 431,797 321,427 242,520 234,595 197,351 1,897,484
2008 2010 Rupees in millions 405,183 832,134 434,862 747,375 360,860 567,611 250,816 431,295 201,773 371,281 183,658 354,011 1,837,152 3,303,707
2008 625,349 597,091 492,268 330,153 297,475 300,730 2,643,066
Average advances to average deposits ratio
* 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.
In percentages
70.7
70.6
67.2
67.2
64.8
64.3
62.0
60.7
60.0
59.9
58.0
55.4
NBP
HBL
UBL 2010
MCB 2009
ABL
BAF
Banking Survey 2010
37
Medium Size Banks

Advances* 2009 119,483 121,340 89,806 74,936 69,726 36,890 40,776 552,957 Deposits 2009 206,916 205,913 189,280 142,185 92,839 100,331 73,548 1,011,012
2010 SCB Askari BAH HMB NIB Meezan Soneri 130,446 140,359 105,693 91,397 61,682 49,316 46,822 625,715
2008 2010 Rupees in millions 122,536 220,188 114,916 255,908 88,719 249,774 85,473 160,314 68,674 99,112 36,011 131,068 41,527 82,017 557,856 1,198,381
2008 174,511 167,505 144,340 128,191 103,798 70,232 61,634 850,211
In percentages
70.4 68.5 63.5 63.3
60.9
59.3
58.5
56.7
56.3
55.0
53.5
44.5
42.7
37.3
Askari
SCB
BAH
HMB
Soneri
Meezan
NIB
2010
2009
38
Banking Survey 2010

Small Banks
Advances* 2009 28,578 35,739 21,911 22,191 11,331 15,148 10,301 20,590 15,186 10,897 8,437 4,669 2,813 3,243 2,119 355 213,508 Deposits 2009 49,610 57,480 37,718 40,797 26,286 29,920 27,987 27,981 26,849 21,314 12,521 6,785 6,005 8,757 2,740 690 383,440
2010 Silk Summit Albaraka HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB 40,724 36,074 24,140 21,285 17,621 13,154 16,317 21,815 16,781 12,741 10,984 5,329 2,803 6,223 2,931 413 249,335
2008 2010 Rupees in millions 28,712 55,706 32,689 61,537 20,185 49,324 24,449 46,461 12,183 36,981 9,379 32,302 6,097 38,198 18,074 31,415 18,970 29,479 9,630 26,276 5,939 14,872 5,590 12,636 5,813 6,066 3,277 10,195 4,093 2,350 269 848 205,349 454,646
2008 41,057 35,260 29,229 37,005 24,732 14,557 12,478 25,459 28,033 15,294 9,860 5,063 10,317 5,939 1,716 522 296,521
In percentages
139.4 99.2
86.6
73.8 60.3 Summit
72.3 71.4
64.2 70.9
63.2 65.8 Silk
62.9 52.9 Albaraka
62.2 56.8
59.9 49.8 HSBC
56.1 49.7
55.1 45.5 Barclays
52.8 46.5
51.5
51.5 49.9
44.4 49.9
46.1 45.8 BOK
40.5 40.2 Islami

2010
SAMBA
MYB
DB
FWB
JS
DI
DIB
OIB
BOT
2009
Banking Survey 2010
39
Islamic Banks
Advances* 2009 36,890 21,911 10,301 20,590 4,669 94,361 Deposits 2009 100,331 37,718 27,987 27,981 6,785 200,802
2010 Meezan Albaraka Islami DIB DI 49,316 24,140 16,317 21,815 5,329 116,917
2008 2010 Rupees in millions 36,011 131,068 20,185 49,324 6,097 38,198 18,074 31,415 5,590 12,636 85,957 262,641
2008 70,232 29,229 12,478 25,459 5,063 142,461
In percentages
72.3 71.4 62.9
86.6
52.9
51.5
42.7
40.5
40.2
Meezan
37.3
Albaraka
Islami 2010 2009
DIB
DI
40
Banking Survey 2010

Asset Quality
ASSET QUALITY NPL compared to total loans and advances The average ratio of non-performing loans as percentage of gross loans and advances of all the banks included in this survey increased to 12.3% compared to 10.9% in 2009. Large Banks The average ratio of non-performing loans as percentage of gross loans and advances of Large Banks increased to 11.5% as against 10.1% in 2009.
In percentages
16.1
13.4
12.9
10.7
10.3
10.1
Non performing loans as percentage of gross loans and advances
9.0
8.6
8.1
7.9
7.0
6.5
NBP
HBL
UBL 2010
MCB 2009
ABL
BAF
Medium Size Banks The average ratio of non-performing loans as percentage of gross loans and advances of Medium Size Banks increased to 13.0% as against 11.4% in 2009.
In percentages
35.3 23.4
15.0
13.8
12.8
12.0 2.3 1.9
12.0
9.6
8.6
8.2
7.5
6.0

Askari SCB
BAH
HMB
Soneri
NIB
Meezan
2010
2009
Banking Survey 2010
41
Small Banks The average ratio of non-performing loans as percentage of gross loans and advances of Small Banks increased to 17.0% as against 16.6% in 2009.
In percentages
36.3 37.1
30.1
29.3 23.4
25.6
22.1 18.4
19.6
19.4
18.8 10.3 13.0 2.1 3.4 Summit Albaraka HSBC

8.2
14.6 18.5
13.1
8.1 9.9
9.8
9.5 6.6
8.0
7.4 4.4
7.0
5.1 3.4 Barclays
3.4 MYB
SAMBA
DB
FWB
Islamic Banks The average ratio of non-performing loans as percentage of gross loans and advances of Islamic Banks increased to 8.9% as against 8.0% in 2009.
Silk
DI
BOK
13.0
JS
2010
Islami
In percentages
DIB
OIB
BOT
2009
18.5 14.6
10.3 8.0
Non performing loans as percentage of gross loan and advances
Meezan
7.5
7.4 4.4
3.4
Albaraka 2010
Islami 2009
DIB
DI
42
Banking Survey 2010

Classification of Non-Performing Loans The ratio of provision against NPL is approximately, 70.7%, 70.3%, 58.1% and 54.4% for Large, Medium, Small and Islamic Banks. Large Banks
Classification-w ise specific provision for non-performing advances OAEM NBP 0.07 0.04 Sub-standard 19 20 23 23 21 11 20 Doubtful 26 54 35 47 50 14 38 Loss 76 97 90 84 100 70 84 Total 66 77 69 77 83 57 71 In percentages
Provision against non-performing loans as percentage of nonperforming loans
HBL UBL MCB ABL BAF
Rupees in millions BAF ABL
Classification wise nonperforming loans
MCB UBL HBL NBP -00 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000
OAEM
Substandard
Doubtful
Loss
Banking Survey 2010

43
Medium Size Banks

Classification-w ise specific provision for non-performing advances OAEM SCB 28 13 Sub-standard 18 22 25 21 22 18 19 21 Doubtful 47 28 48 35 48 38 25 41 Loss 93 80 91 80 83 85 75 84 Total 81 70 57 68 66 72 65 70 In percentages
Askari BAH HMB NIB Meezan Soneri
Rupees in millions
Soneri

Meezan NIB HMB BAH Askari SCB
-00
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
OAEM
Substandard
Doubtful
Loss
44
Banking Survey 2010

Small Banks
Classification-w ise specific provision for non-performing advances OAEM Silk Sub-standard 12 17 16 15 8 25 10 4 13 -00 24 15 3 12 32 50 12 23 17 1 50 43 18 27 Doubtful 28 33 32 Loss 77 64 63 62 83 100 45 64 65 56 98 82 100 88 80 72 Total 69 50 51 50 73 67 40 27 52 28 95 53 100 52 33 58 In percentages
Summit Albaraka HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB
Rupees in millions
OIB BOT FWB DB
DI SAMBA JS MYB DIB Islami Barclays BOK HSBC Albaraka Summit Silk 2,000
OAEM
4,000
6,000
Substandard
8,000
Doubtful
10,000
Loss
12,000
14,000
Banking Survey 2010

45
Islamic Banks
Classification-w ise specific provision for non-performing advances OAEM Sub-standard 18 16 10 4 15 10 Doubtful 38 32 12 23 43 35 Loss 85 63 45 64 82 72 Total 72 51 40 27 53 54 In percentages
Rupees in millions
DI
DIB
Islami
Albaraka
Meezan
500 OAEM
1,000
1,500
2,000
2,500 Doubtful
3,000 Loss
3,500
4,000
4,500
5,000
Substandard
46
Banking Survey 2010

Deposits
DEPOSITS Deposits for banks included in this survey increased by 14.5% to Rs. 4,956.7 billion at 31 December 2010 compared to Rs. 4,329.7 billion at 31 December 2009. Growth in Deposits Large Banks
Annual Increase 2010-09 2009-08 In percentages 14.4 16.3 9.5 14.3 12.7 2.3 17.3 11.3 12.9 10.6 9.0 8.0 12.6 11.1 Deposits 2009 2008 Rupees in millions 832,134 727,513 625,349 747,375 682,750 597,091 567,611 503,832 492,268 431,295 367,581 330,153 371,281 328,873 297,475 354,011 324,743 300,730 2,935,292 2,643,066
2010
3,303,707

In percentages
BAF ABL MCB UBL HBL NBP 7.4
8.5 11.7 14.3
11.9 15.4
Banking Survey 2010

47
Medium Size Banks

Annual Increase 2010-09 2009-08 In percentages 6.4 18.6 24.3 22.9 32.0 31.1 12.8 10.9 6.8 (10.6) 30.6 42.9 11.5 19.3 18.5 18.9 Deposits 2009 2008 Rupees in millions 220,188 206,916 174,511 255,908 205,913 167,505 249,774 189,280 144,340 160,314 142,185 128,191 99,112 92,839 103,798 131,068 100,331 70,232 82,017 73,548 61,634 1,011,012 850,211
2010
1,198,381
In percentages
Soneri Meezan (2.3) NIB HMB BAH Askari SCB 12.3 11.8
15.4 36.6
31.5 23.6
48
Banking Survey 2010

Small Banks
Annual Increase 2010-09 2009-08 In percentages 12.3 20.8 7.1 63.0 30.8 29.0 13.9 10.2 40.7 6.3 8.0 105.5 36.5 124.3 12.3 9.9 9.8 100.0 23.3 39.4 18.8 27.0 86.2 34.0 1.0 (41.8) 16.4 47.4 (14.2) 59.7 22.9 32.2 18.6 29.3 Deposits 2009 2008 Rupees in millions 55,706 49,610 41,057 61,537 57,480 35,260 49,324 37,717 29,229 46,461 40,797 37,005 36,981 26,286 24,732 32,302 29,920 14,557 38,198 27,987 12,478 31,415 27,981 25,459 29,479 26,849 28,033 26,276 21,314 15,294 14,872 12,521 9,860 12,636 6,785 5,063 6,066 6,005 10,317 10,195 8,757 5,939 2,350 2,740 1,716 848 690 522 383,439 296,521
2010
454,646

In percentages OIB BOT FWB (23.3) DB DI SAMBA JS MYB DIB Islami Barclays BOK HSBC Albaraka Summit Silk 16.5 12.1 29.9 32.1 22.3 49.0 4.8 11.1 75.0 22.8 31.1 58.0 17.0 31.0 27.5
Banking Survey 2010

49
Islamic Banks
Annual Increase 2010-09 2009-08 In percentages 30.6 42.9 30.8 29.0 36.5 124.3 12.3 9.9 86.2 34.0 30.8 41.0 Deposits 2009 Rupees in millions 131,068 100,331 49,324 37,717 38,198 27,987 31,415 27,981 12,636 6,785 262,641 200,801
2010
2008 70,232 29,229 12,478 25,459 5,063 142,461

In percentages
DI DIB Islami Albaraka Meezan 29.9 36.6 11.1
58.0
75.0
50
Banking Survey 2010

Market Share of Customer Deposits

2010 2009 In percentages 16 15 15 16 12 12 9 9 8 8 7 7 5 5 5 5 5 4 3 3 16 15 100 100 2010 2009 Rupees in millions 747,964 635,591 732,066 673,533 562,762 501,454 424,041 363,235 370,562 324,678 322,992 298,833 219,727 206,129 255,466 204,414 239,190 181,458 147,963 138,355 749,299 624,943 4,772,032 4,152,623
NBP HBL UBL MCB ABL BAF SCB Askari BAH HMB Less than 3 %
* Deposits from financial institutions have been excluded to analyse deposits from customers.
Less than 3 % 16% NBP 16% HMB 3% BAH 5% Askari 5% SCB 5% BAF 7% MCB 9% HBL 15%
UBL 12%
ABL 8%
Banking Survey 2010

51
Banks with less than 3% market share

2010 2009 In percentages 2.0 2.1 2.7 2.4 1.7 1.8 1.1 1.1 1.3 1.3 1.0 0.8 1.0 1.0 0.8 0.6 0.7 0.8 0.7 0.6 0.5 0.3 0.3 0.1 0.2 0.0 0.0 16 0.7 0.7 0.7 0.6 0.5 0.3 0.1 0.1 0.2 0.1 0.0 15 2010 2009 Rupees in millions 93,680 88,082 130,544 97,901 81,668 73,100 53,682 45,501 60,822 55,038
NIB Meezan Soneri Silk Summit
Albaraka
HSBC BOK Barclays Islami DIB MYB JS SAMBA DI DB FWB BOT OIB
46,573
45,894 36,231 32,263 37,913 31,345 29,033 23,769 14,483 12,064 6,059 10,193 2,342 741 749,299
33,502
40,304 26,016 29,912 27,513 27,601 26,201 19,699 11,372 5,056 6,000 8,729 2,729 687 624,943
* Deposits from financial institutions have been excluded to analyse deposits from customers.
BOT 0.05% OIB 0.02% NIB 2% Meezan 2.7%
DIB 0.7% Islami 0.8% Barclays 0.7%
MYB 0.6%
SAMBA 0.3% JS 0.5%
DB 0.1% DI 0.3%
FWB 0.2%
BOK 0.8% HSBC 1.0% Silk 1.1%
Soneri 1.7%
Albaraka 1.0%
Summit 1.3%
52
Banking Survey 2010

Current and Saving Deposits To Total Deposits (CASA)

CURRENT AND SAVING DEPOSITS TO TOTAL DEPOSITS (CASA) Banks National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Bank Al-Habib Limited Habib Metropolitan Bank Limited NIB Bank Limited Soneri Bank Limited Silkbank Limited Summit bank Limited HSBC Bank Middle East Limited The Bank of Khyber Barclays Bank PLC Mybank Limited JS Bank Limited Samba Bank Limited Deutsche Bank AG 2010 2009 Percentage 70.0 71.6 69.7 80.5 70.4 62.4 79.1 73.7 59.4 48.9 54.6 60.8 49.0 54.3 49.4 54.8 45.2 59.8 57.5 55.0 52.5 66.5 69.2 68.8 82.3 68.8 54.6 71.8 76.1 58.5 52.6 56.4 56.5 44.0 43.9 45.8 54.0 49.1 50.1 49.8 43.4 73.9
Banking Survey 2010

53
Banks First Women Bank Limited Bank of Tokyo Mitsubishi UFJ, Limited Oman International Bank S.A.O.G. Meezan Bank Limited Albaraka Islamic Bank B.S.C.(E.C.) BankIslami Pakistan Limited Dubai Islamic Bank (Pakistan) Limited Dawood Islamic Bank Limited
2010 2009 Percentage 80.2 42.0 56.6 65.7 44.6 50.1 50.4 51.2 85.8 50.4 65.0 65.3 42.0 54.2 43.0 33.2
54
Banking Survey 2010

Earning Per Share

EARNINGS PER SHARE (EPS) Earnings / (loss) per share 2010 2009 Rupees per share 13.24 16.78 9.01 22.20 10.59 0.89 0.95 1.44 4.92 3.22 (2.40) 0.21 (0.49) (4.18) N/A 1.13 N/A (1.97) (0.66) (0.10) N/A 12.97 13.36 7.78 20.61 9.14 (0.08) 0.21 1.74 3.90 3.15 0.37 0.28 (2.52) (5.27) N/A (1.27) N/A (3.09) (1.05) (0.68) N/A
Banks National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Bank Al-Habib Limited Habib Metropolitan Bank Limited NIB Bank Limited Soneri Bank Limited Silkbank Limited Summit Bank HSBC Bank Middle East Limited The Bank of Khyber Barclays Bank PLC Mybank Limited JS Bank Limited Samba Bank Limited Deutsche Bank AG
Banking Survey 2010

55
Banks First Women Bank Limited Bank of Tokyo Mitsubishi UFJ, Limited Oman International Bank S.A.O.G. Meezan Bank Limited AlBaraka Bank (Pakistan) Limited BankIslami Pakistan Limited Dubai Islamic Bank (Pakistan) Limited Dawood Islamic Bank Limited
Earnings / (loss) per share 2010 2009 Rupees per share 0.84 N/A N/A 2.61 (2.19) 0.09 0.01 (1.07) (2.82) N/A N/A 2.49 (1.25) (0.93) 0.38 (0.60)
56
Banking Survey 2010

Credit Ratings
CREDIT RATINGS Banks Rating Agency Credit Rating Assigned Short Term National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Bank Al-Habib Limited Habib Metropolitan Bank Limited NIB Bank Limited JCR-VIS JCR-VIS JCR-VIS PACRA PACRA PACRA PACRA PACRA PACRA PACRA PACRA A-1+ A-1+ A-1+ A1+ A1+ A1+ A1+ A1+ A1+ A1+ A1+ Long Term AAA AA+ AA+ AA+ AA AA AAA AA AA+ AA+ AA-
Banking Survey 2010

57
Banks
Rating Agency
Credit Rating Assigned Short Term Long Term AAAA A1 AAAAAAAa3 AAAA A A+ Aa3 AABBB+ A+ Aa2 A BBB AAA A A A-
Soneri Bank Limited Silkbank Limited Summit Bank Limited HSBC Bank Middle East Limited The Bank of Khyber Barclays Bank PLC
PACRA JCR-VIS JCR-VIS Moody's Fitch JCR-VIS PACRA Standard & Poors Moodys Fitch
A1+ A-2 A-2 P-1 F1+ A-2 A2 A-1+ P-1 F1+ A2 A1 A-1 A-1 P-1 F1+ A2 A-1 P-1* F1 A-2 A-1 A2 A1 A-1 A-2
Mybank Limited JS Bank Limited Samba Bank Limited Deutsche Bank AG
PACRA PACRA JCR-VIS Standards & Poor's Moodys Fitch
First Women Bank Limited Bank of Tokyo-Mitsubishi UFJ Limited
PACRA Standard & Poors Moodys Fitch
Oman International Bank S.A.O.G. Meezan Bank Limited Al-Baraka Bank (Pakistan) Limited BankIslami Pakistan Limited Dubai Islamic Bank (Pakistan) Limited Dawood Islamic Bank Limited
JCR-VIS JCR-VIS PACRA PACRA JCR-VIS JCR-VIS
58
Banking Survey 2010

Number of Branches and Legend

NUMBER OF BRANCHES AND LEGEND Large Banks Banks Legend Number of Branches * 2010 2009 1,289 1,287 1,501 1,494 1,123 1,120 1,132 1,081 806 779 386 321 6,237 6,082
National Bank of Pakistan Habib Bank Limited United Bank Limited MCB Bank Limited Allied Bank Limited Bank Alfalah Limited Medium Size Banks Standard Chartered Bank (Pakistan) Limited Askari Bank Limited Bank Al-Habib Limited Habib Metropolitan Bank Limited NIB Bank Limited Soneri Bank Limited
SCB Askari BAH HMB NIB Soneri
162 235 303 135 178 184 1,197
162 226 255 120 223 154 1,140
Small Banks Silkbank Limited Summit Bank HSBC Bank Middle East Limited The Bank of Khyber Barclays Bank PLC Mybank Limited JS Bank Limited Samba Bank Limited Deutsche Bank AG First Women Bank Limited Bank of Tokyo-Mitsubishi UFJ Limited Oman International Bank S.A.O.G. Silk Summit HSBC BOK Barclays MYB JS SAMBA DB FWB BOT OIB 85 80 11 50 15 80 126 28 3 38 1 3 520 82 80 12 41 15 80 101 28 3 38 1 3 484
Banking Survey 2010

59
Islamic Banks Banks Legend Number of Branches * 2010 2009 222 201 89 60 102 102 51 36 50 514 50 449
Meezan Bank Limited Al-Baraka Bank (Pakistan) Limited BankIslami Pakistan Limited Dubai Islamic Bank (Pakistan) Limited Dawood Islamic Bank Limited * As at 31 December.
60
Banking Survey 2010

Definitions
DEFINITIONS Average Advances Gross advances less provision. The average of opening and closing advances at two year ends is taken. The average of opening and closing deposits at two year ends is taken. Deposits with treasury & other banks, lending to financial institutions, investments and advances. The average of opening and closing earning assets at two year ends is taken. Head office capital account/ paid-up capital, reserves, unappropriated profit/accumulated loss, minority interest and surplus/ (deficit) on revaluation of assets. The average of opening and closing equity at two year ends is taken. The percentage change compared to the previous year. The percentage change over the last two years on annualised basis, i.e. Figure (year 2010) - 1 Figure (year 2008) Average Paying Funds Borrowings from financial institutions, remunerative deposits, sub-ordinated loans and liabilities against assets subject to finance lease. The average of opening and closing paying funds at two year ends is taken. Mark-up/ Return/ Interest expense.
Average Deposits
Average Earning Assets
Average Equity
Annual Increase
Annualised Increase
Cost of Funds
Banking Survey 2010

61
Equity
Equity includes shares capital / head office capital account, reserves, unappropriated profit/accumulated loss, minority interest and surplus / deficit on revaluation of assets. Mark-up/ Return/ Interest earned, dividend income, gain/loss on sale of securities, profit/loss from associates and unrealized gain/loss on held for trading securities. Loans, cash credits, overdrafts, ijaras, etc. and local & foreign bills discounted & purchased before provisions. Interest bearing assets means: cash and balances with treasury banks, balances with other banks, lending to financial institutions, fixed income investments and advances. Interest bearing liabilities means: borrowings, deposits and other accounts, sub-ordinated loans and liabilities against assets subject to finance lease. Fee, commission & brokerage, rent, income from dealing in foreign currencies, profit on sale of fixed & other assets and other non-fund receipts. 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. Includes all expenses charged to arrive at profit before tax excluding cost of funds and provisions. Operating fixed assets include intangible assets. Other assets include deferred tax assets.
Funded Revenue
Gross Advances
Interest Bearing Assets
Interest Bearing Liabilities
Non-funded Income
Net Interest Income Ratio
Operating Cost
Operating Fixed Assets
Other Assets
62
Banking Survey 2010

Other Liabilities
Other liabilities include deferred tax liabilities and liabilities against assets subject to finance lease. 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.
Provisions
Remuneration per Executive Return on Average Equity Spread
Remuneration of executives divided by number of executives. Profit before tax as a percentage of average equity. Difference between markup/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. Salaries, allowances, etc., staff retirement benefits and cost of redundancy / voluntary retirement / severance excluding Workers Welfare Fund. Charge for current (including prior) and deferred taxation in the profit and loss account.
Staff Cost
Taxation
Banking Survey 2010

63

Banking Survey 2010

Uploaded by

Copyright:

Available Formats

Banking Survey 2010

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Banking Survey 2010

Uploaded by

Copyright:

Available Formats

At a Glance

Cash & bank

Lendings to financial institutions

Liabilities and Equity