ifp - aug 2012

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The Progress of Takaful Companies (2011)

Compiled by EY-IFSG

Overview of Takaful market

In the recent years, Takaful has made its place in

Pakistani market at a rapid pace. This is

supported by the rules and regulations issued by

SECP (Securities and Exchange Commission of

Pakistan) over the years. Takaful Companies filed

a petition through which the Sindh High Court

(SHC) restrained SECP from implementing the

Takaful Rules,2012 issued. Takaful companies

are of the view that the new rules had been issued

by the SECP without considering the opinions of

religious scholars who would have advised the

regulator that the new rules were not in line withthe Islamic principles.

Currently the market has 5 players, two family

Takaful and three general Takaful companies.

Overall profitability growth of Takaful

Companies during 2011

In 2011, various Takaful companies in Pakistan

ISLAMIC FINANCE INDUSTRY NEWSLETTER

ISLAMIC FINANCE PAKISTAN

VOLUME 3 ISSUE 8 AUGUST 2012

Ayat of the Month

O you who believe, when the

call for Salah (prayer) is

proclaimed on Friday, hasten

for the remembrance of Allah,

and leave off business. That is

much better for you, if you

but know. Then once the Salah

is over, disperse in the land,

and seek the grace of Allah,

and remember Allah

abundantly, so that you may

be successful. [Surah Al-

Jumua:9,10]

Inside this issue

I n t h e r e c e n t years, Takaful

h a s m a d e i t s

place in Pakistani

market at a rapid

p a c e . T h i s i s

supported by the

r u l e s a n d

regulations issued

by SECP over they e a r s . S H C

restrained SECP

f r o m

implementing the

T a k a f u l R u l e s

2 0 1 2 , i s s u e d .

Inside Story 1

Editors Message 2

Local andInternational NewsGet a glimpse of

what is happening in

the world of Islamic

finance

6

In the SpotlightFind our read of the

month

9

Ask USBy Mufti Ibrahim Essa

and Mufti Javed

10

Pakistan IslamicBanking IndustryAnalysis

11

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Editorial

Page 2 An initiative of IFP forum

Advisory Board

Mufti Irshad Ahmed Aijaz

Mufti Najeeb Khan

Anwar Ahmed Meenai

Mohammad Aslam

Mujeeb Baig

Syed Shahjahan Salahuddin

Faizan Memon

NusratUllah Khan

Muhammad Shahzad

Hussain

Arshad Hussain Zubairi

Ammar Khalid

Rima Farooq

Sukuk is an Islamic financial certificate, similar to a bond in Western

finance, that complies with Shariah. In its simplest form Sukuk are asset-

backed trust certificate evidencing ownership of an asset or its usufruct. As

the traditional Western interest paying bond structure is not permissible, the

issuer of a Sukuk sells an investor group the certificate, who then rents it

back to the issuer for a predetermined rental fee. The issuer also makes a

contractual promise to buy back the bonds at a future date at par value. As

Sukuk securities adhere to Islamic laws sometimes referred to as Shariah

principles, it prohibits the charging or payment of interest as to conventional

bonds.

Modern Islamic finance is a recent phenomenon. Only 30 years have passed

since the first fully fledged Islamic financial institution (IFI) emerged, and

the market for Sukuk (Islamic bonds) was non-existent up until the

beginning of this century. The emergence of Sukuk has been one of the most

significant developments in Islamic capital markets in recent years. Simply

put, Sukuk instruments links their issuers, with a wide pool of investors,

many of whom are seeking to diversify their holdings beyond traditional asset

classes, thereby acting as a bridge for linking issuers with a pool of investors.

Sukuk issuance has proven its resilience during the recent periods of global

capital markets financial crisis. According to Moodys report on Islamic

Banks and Sukuk, growth rates are at least twice as high as those recorded on

global conventional financial markets.

Nevertheless, liquidity in the Sukuk market is expected to improve gradually

as the variety of Sukuk issuances widens. Not only the volumes are expected

to exceed by the end of the current decade as seen by the industry experts,

but the nature, geographic location and credit quality of future issuers are

also expected to considerably diversify.

Happy Reading!

Let us know, if you know friends or colleagues who, in your view, may benefit from this newsletter. Send us their email

addresses at [email protected]

Editor-in-Chief

Associate Editors

7/27/2019 IFP - Aug 2012

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have performed well in terms of

profitability. This could be judged by

the financial results of the Takaful

leaders in Pakistan.

Pak Qatar General Takaful Limited

(PQGTL) posted its loss before tax into

profit in the year 2011. In the year

2010, it recorded the loss of PKR 28

million where as in 2011 it registered a

profit of PKR 8 million. It was mainly

due to the favorable movement in

gross contributions by 52% in 2011,

supported by the reasonable growth in

the different segments of the business

especially by motor (which represents

71% of contribution) and fire (whichrepresents 13% of total contribution)

segment. Moreover, the reduction in

various expenses, for instance,

management fee by 7% and general

and administration expenses by 9%

also contributed to the increase to

some extent.

Pak Qatar Family Takaful Limited

(PQFTL) reduced its loss from PKR 72

million to PKR 9 million. It was due to

rise in contribution income(annualized) of different segments such

as individual family by 78%, group

family by 113% and group health by

61%. Moreover, the rise in net

investment income by 89% and the

reduction in the expenses such as

expenses not attributable to statutory

fund moved down by 28% also

contributed to the reduction in the

loss.

Dawood Family Takaful Limited

(DFTL) loss further heightened by

38%. The primary reason behind the

fluctuation was the significant rise in

the commission expenses by 35% and

the management expenses by 14%.

Moreover, the fall in investment

income by 24% also moved the loss

figure up.

Pak-Kuwait Takaful Company

Limiteds (PKTCL), profit moved down

by 27% which was primarily due to the

rise in net commission by 106% and

the reduction in the net investment

income by 21%.

In the case of Takaful Pakistan Limited

(TPL), it also posted the loss of PKR 35

million into the profit of PKR 3million, it represents the significant

movement around 91%. It was mainly

due to the significant reduction in the

direct expenses by 68 % and the

Page 3

Continued The Progress of Takaful Companies (2011)

An initiative of IFP forum

Takaful Companies

profitability graph have

moved up in the recentyears.

83%

153%

41%

128%

55%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Average Gross Contribution (2011)

PQGTL

PQFTL

DFTL

PKT

TPL

12 13

65

9

26

0%

10%

20%

30%

40%

50%

60%

70%

Expense Ratio (2011)

PQGTL

PQFTL

DFTL

PKT

TP

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increase in other income by 29%.

Moreover, the reduction in

management fee by 53% also

contributed to the profitability.

Analysis of Total Assets

Overall, there was rise in the total assets

of the Takaful companies in Pakistan

and which was due to an improvedconfidence in the Takaful business.

In 2011, PQGTL total assets moved up

by 18% compared to the previous year.

The increase was due to the expansion

of the business in the motor segment,

in addition, the rise in the contribution

due by 85% and the increase in the

capital work in progress by 15% also

contributed to the upward movement

of the total assets.

In case of PQFTL total assets moved up

by 92%, which is significant movement

in the total assets. The upward

movement was mainly due to the

increase in cash and bank deposits by

132% and the rise in total investment

by 122%.

DFTL total assets moved in positive

direction by 7%. It was supported by

the increase in the cash and bank

deposits by 50% and the rise in the

contributions by 41%. In addition,

investment in listed Shariah compliant

shares of PKR 4.9 million also added

value to the total assets of DFTL.

The total assets of PKTCL alsoincreased in positive direction by 12%

which was due to the significant rise in

the prepayment of deferred

commission expense by 53% and

contribution due by 48%. Moreover,

the rise in investments and current

account deposits also supported the

increase in the total assets of the

company.

TPLs, total assets increased by 5 %

during the year, which was because of

the rise in cash and bank deposits by

3% and the upward movement in

investments by 18%. Moreover, the rise

in other current assets by 13% also

contributed to the increase in total

assets of the company.

Overall, Takaful Companies

performance was outstanding in the

year 2011 and it seems that the trend

will continue in the future as well.

Page 4



Takaful Companies

Performance was

outstanding in the year

2011.

37%

14%

63

20%22%

0%

10%

20%

30%

40%

50%

60%

70%

Management Expense Ratio (2011)

PQGTL

PQFTL

DFTL

PKT

TPL

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Page 5



Financial summary of the Takaful Companies for the year 2011

Statement of Financial Position Figure in Rupees

Sr.

No Description PQGTL PQFTL DFTL PKTCL TPL

1. Total assets 443,621,775 2,072,039,407 873,603,996 681,036,614 488,902,019

2. Cash and other equivalents 690,949 1,738,015 129,820,728 126,513 110,882

3. Investments 131,274,372 902,195,231 333,157,472 56,870,735 57,771,415

4.

Deposits maturing within 12

months 64,723,500 490,880,000 115,000,000 231,142,100 206,690,000

5. Cede money 500,000 500,000 100,000 500,000 -

6. Creditors and accruals 54,867,057 237,358,334 116,055,062 152,825,078 174,366,245

7. Total equity and liabilities 443,621,775 2,072,039,407 873,603,996 681,036,614 488,902,019

8.

Amount due to co-takaful /

retakaful operators 33,146,839 3,882,776 10,169,953 67,863,830 54,054,267

Statement of Comprehensive Income

9. Profit / (loss) before taxation 11,246,641 (4,373,116) (115,532,353) 49,317,922 1,834,013

10. Taxation 2,689,318 5,022,323 25,156,712 6,422,462 2,095,716

11. Profit / (loss) after taxation 8,557,323 (9,395,439) (90,375,641) 42,895,460 3,907,376

12. Net investment income 28,903,885 6,828,231 29,828,009 1,498,629 1,564,656

13. Commission expense 19,446,325 544,569,703 116,174,453 14,855,684 14,593,284

14. Management expenses 86,177,569 159,741,563 206,364,142 129,910,861 371,112,779

15. Wakala fees 121,756,000 459,421,984 169,035,236 202,307,548 72,074,327

Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for

the year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data

presented here and will not assume any liability due to any loss or damage caused by the usage of the informationpresented here. User discretion advised.

7/27/2019 IFP - Aug 2012

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The Islamic Financial Services Board

(IFSB) is pleased to announce the

upcoming awareness programmes

a n d t h e F a c i l i t a t i n g t h e

Implementation of IFSB Standards

workshops that will held throughoutthe third and fourth quarters of

2012.


Disclaimer:

The news included here is on the basis of information obtained from local and international print and electronic mediasources. IFP team does not accept any responsibility about their bona-fide.

In an aim to provide customers with Shariah-compliant banking productsand services in the near future, Oman Development Bank (ODB) has

decided to set up a team to study the current products and services the bank

offers and the possibility of adding new products and services that are in

line with Shariah. The team will submit its report by the end of August.

The sultanate has decided to allow the establishment of Islamic banking

and the opening of new outlets for Islamic banking products and services at

existing banks. The aim is to take advantage of the rising demand for

Islamic banking services and products.

Announcement of theIslamic Financial ServicesB o a r d ' s a w a r e n e s spr og r am an d F I S

workshops 2012

ODB constitutes team to study Islamic bankingproducts and services

Ithmaar support for keyBahrain event in Tokyo

Ithmaar Bank , a Bahrain-based

Islamic retail bank, threw its weight

behind an event, planned for the

Annual International Monetary

Fund (IMF)-World Bank meeting in

Tokyo, which aims to promote

Bahrain as a key financial hub in the

Middle East.

KFH-Turkey: 23 years ofsuccessful leadership ofKuwaiti private sector inTurkey

On 31st March 1989, KFH-Turkey

began officially working in Istanbul

as the first Islamic bank in Turkey.

The bank was a result of the

collaboration between Kuwait and

Turkey, who believed in establishing

an Islamic bank that depends on

Kuwait's experience in this field and

Turkey's promising economy. This

led to a bank that is a source of

pride for Kuwait and the GCC.

Saudi Arabia's approval of a

landmark mortgage law after a delay

of more than three years will give

rise to Islamic funding and tackle

some of the challenges in the real

estate sector in the Kingdom of

Saudi Arabia.

Mortgage law to spurIslamic finance

NASDAQ Dubai welcomed the

listing of a $650 million Sukuk

by Jebel Ali Free Zone ( JAFZ ) on its

market. The listing confirms the

exchange's status as the largest in the

Middle East for Islamic bonds,

bringing the total nominal value of

its listed Sukuk to $7.1 billion.

N A S D A Q D u b a iwelcomes $650 millionJAFZ Sukuk to its market

Bahrain-based Tharawat Investment

House ( Tharawat ), an Islamic

investment institution based in the

Kingdom of Bahrain, announced

five percent profit returns

of Tharawat Sukuk Fund for the

period from January to June 2012,

achieving a cumulative return of

17.4 % since its inception in

February 2010. Tharawat said it

would distribute around four

per cent for the period, making it

the fifth time of such distribution.

Tharawat Sukuk Fundyields 5% profit in firsthalf

Abu Dhabi Islamic Bank (ADIB), a

top-tier Islamic financial services

institution, announced the

appointment of Arif Usmani as the

Global Head of ADIB's Wholesale

Banking business.

Arif is a leading global banker withover 30 years of diverse banking

experience across several geographies

and disciplines. He has extensive

experience in risk management,

corporate relationship banking and

franchise management.

ADIB appoints new headof wholesale banking

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S&P Indices announced the launch

of the S&P/OIC COMCEC 50

Shariah Index, which is designed to

measure the performance of 50

l e a d i n g S h a r i a h - c o m p l i a n t

companies from the member states

of the Organization of Islamic

Cooperation (OIC). The Index has

been designed in partnership withthe OIC.


Disclaimer:


Oman's leading investment holding company Oman National InvestmentCorporation (ONIC) holding is negotiating with a regional Islamic

insurance firm to jointly promote a Takaful company in Oman.

ONIC Holding has already received an 'in principal' approval from the

Capital Market Authority (CMA), after the government decided to allow

Islamic banks and insurance firms.

However, a licence will be given only after the regulating authority

announces a separate set of rules for Shariah-compliant insurance

companies and Islamic debt instruments like Sukuk.

S&P Indices launchesShariah Index with OIC

ONIC starts dialogue for JV Takaful firm

Over 90% of Moroccanconsumers interested inIslamic finance surveyfindings revealed

Key findings published in July from

Morocco's first independent market

study, entitled 'Islamic Finance in

Morocco - Sizing the retail market'points to a very strong interest from

local consumers in Islamic Finance

products and services. Over 80% of

the Kingdom's consumers indicated

their likelihood to take up a Shariah

compliant financing (loan) upon

launch.

SIB launches leadershipdevelopment initiative

Sharjah Islamic Bank (SIB) launchedKawader Programme, an innovative

learning initiative aimed at

developing talented Emirati cadres

and qualifying them to hold higher

administrative positions in the

banks various departments and

branches.

Qatar Islamic Bank (QIB) has

compiled a hugely competitive suite

of vehicle financing initiatives to

coincide with the Holy Month. This

includes a very competitive Profit

rate, a five-month payment 'holiday'

(1st instalment in January 2013 ), acomprehensive Auto Takaful with

the best rate available in Qatar, free

Windows tinting voucher and a free

co-branded QIB/Qatar Airways card

for the first year.

Q I B a n n o u n c e sinnovative auto financingscheme for ramadan

As part of the Bank's contribution to

the UAE community, Dubai Islamic

Bank ( DIB ) announced the launch

of its annual Iktaseb summer

training programme for young UAE

nationals.

105 young Emiratisembark on DIBs Iktaseb

s u m m e r t r a i n i n gprogramme

Gulf region's issuance activity is

likely to remain fairly robust in thecoming quarters, partly because of

refinancing requirements, partly

thanks to formally approved

issuance programs by a growing

number of regional companies, most

notably banks, the National

Commercial Bank said in its latest

GCC Financial Market Quarterly.

Gulf bond issuanceactivity to remain fairlyrobust

The second quarter of this year saw

the GCC financial markets put up a

show of considerable resilience in

the face of elevated global economic

uncertainty as the eurozone crisis

deteriorated. Even though especially

Saudi interbank rates have edged up,largely in reflection of the growing

demand for credit, the regional

banks are strong and liquidity

conditions benign. The UAE and

Kuwait continue to lag behind,

however, due to a combination of

largely country-specific factors.

GCC seen as safe haven asuncertainties rattle globalfinancial markets

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Disclaimer:


The world's first postgraduate diploma on Halal industry is going to be

launched in Pakistan from November, which will be presented through

modern online technology concurrently around the world so that the

education and awareness regarding Halal food and products could be spread

in Muslim and non-Muslim countries with special reference for those

countries where Muslims are in minority and they remain tensed about Halalfood products.

This diploma would be of eight months which would consist of four modules

and each module would consist of two courses. In first module, concepts of

Halal and general guidance about Halal food would be taught whereas role of

food ingredients and Halal slaughtering in second module, prospective of

Halal industry world-wide and Halal banking in third module and Halal

standardisation and prospective of Halal industry in developed area will be

taught in fourth module.

World's first postgraduate diploma on Halal industrylaunched

Islamic banking in Pakistan is being

practiced on the basis of supply and

demand and not as mandatory by

t h e g o v e r n m e n t , s a i d

Jami atu r Ra sh ee d Ed uc atio n

Director Abdul Aziz Raja.

Addressing at a seminar on a case

study on A Blend of Contemporary

and Religious Education, held atKorangi Association of Trade and

Industry (KATI), Raja said that

banking ordinance was introduced

in 1974 but tabled in the House in

1984, under which the Islamic

banking in Pakistan should be

mandatory and not the option.

Islamic banking should beenforced under SC order

Attock Chamber of Commerce andIndustry (ACCI) said that growth

rate of Islamic banking in Pakistan is

v e r y i m p r e s s i v e .

75 countries have recognised Islamic

banking, major banks including

HSBC, Citigroup, Deutsche Bank

and Standard Chartered have

Islamic banking branches or

windows in Pakistan, which prove

success of Riba-free banking, said

President ACCI, Tariq Mehmood.

Islamic banking growth isimpressive

hearing a constitutional petition

filed by five Takaful companies,

challenging the rules.

The SECP allowed conventional

insurance companies to carry on

T a k a f u l b u s i n e s s t h r o u g h

one-window operations. The Takaful

companies had raised serious

objections that the new rules would

result in distortion of the Takaful

business in Pakistan.

SHC restrains SECP fromenforcing new TakafulRules

The Sindh High Court (SHC) on

Thursday restrained the Securities

and Exchange Commission of

Pakistan (SECP) from implementing

its Takaful Rules of 2012, while

Standard Chartered Bank (SCB)

arranged one-year $35 million

Islamic Structured Trade Finance

facility for Pakistan International

Airlines (PIA). The Bank was the

sole arranger and structuring bank

for this transaction. The facility is

structured as an offshore transactionunder an Islamic mode, which uses

Ijara concept based on purchase and

distribution of airline seats.

SCB arranges $35mIslamic Trade Financefacility for PIA

State Bank Governor Yaseen

Anwar has said that the Islamic

banking has great opportunity to

finance projects in agriculture and

small and medium enterprise

(SME) sectors which are the

avenues missed by conventional

financial institutions.

Islamic banks urged toexplore SME, farm sectors

Bank of Khyber (BoK)expanded its wings inIslamic Banking with thebrand name of BoK Raast

Managing Director, Mr. Bilal

Mustafa, said; BoK is committed

to cater the Banking requirements

of Islamic Banking as well as

conventional in a befitting manner

in order to encourage the

economic developmental activities

in the country through its

expanding network of branches.

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The book generally describes the

economical values for Muslim

ummah, and this being the very first

of the whole compilation the

compiler came up with the articles

which were intended for ethical and

moral building of the reader, as

This book is the first volume of the

8 volume set that is a compilation of

different articles written by Mufti

Muhammad Taqi Usmani. Some ofthem were published separately,

while others were a part of his other

independent books (the source of

the article is mentioned on the title

of each chapter).

The book starts with a preamble

written by Mufti Mahmood Ashraf

(who is also a very senior member of

the Darulifta Jamia Daruloom Khi)

in which he describes the

importance of innovational research

in the field of various aspects of a

Muslims life regarding Shariah

rulings which also includes Islamic

economic system, and he further

sheds light on the author and his

publications. The preamble is

followed by compilers views about

the contents of the book and his

inspiration and respect for the

original author.

good and bad intentions may render

economical benefits impermissible

for a Muslim. The first article is

about unwanted human attachmentwith fame and money, but on the

other hand also depicts the

importance of work and earn

income within the prescribed

Shariah limits. He even writes the

virtue of trading as it was also sunnat

of the Prophet (P.B.U.H) and the

evil practices involved in it today. All

of his discussions are supported with

Quranic verses and Hadiths with

t h e i r t r a n s l a t i o n s a n d

understandings, and they alsoinclude examples from the lives of

the companions of the Holy Prophet

(P.B.U.H) and the ongoing list of

the followers.

Page 9An initiative of IFP forum

Book in the Spotlight

Islamic Law of Contract

By Dr. Liaquat Ali Khan Niazi Volume 1

Reviewed by

Mufti Haseeb Ahmed

Published by: Research cell

Dayal Singh Trust Library,

Lahore

About the Author

Mufti Muhammad Taqi Usmani is one of the leading Islamic scholars living today. He is an expert in the fields

of Islamic Jurisprudence, Economics, Hadith and Tasawwuf. Born in Deoband in 1362H(1943 CE), he

graduated par excellence form Dars e Nizami at Darul Uloom, Karachi, Pakistan. Then he specialized in Islamic

Jurisprudence under the guidance of his eminent father, Mufti Muhammad Shafi, the late Grand Mufti of

Pakistan. Since then, he has been teaching hadith and Fiqh at the Darul-Uloom, Karachi. He also holds a

degree in law and was a Judge at the Sharia Appellate Bench of the Supreme Court of Pakistan. He has been

writing on various Islamic topics and is author of more than 60 books and numerous articles. Presently he is the

Vice-president of Darul-Uloom, Karachi, Pakistan, where he teaches Sahih Bukhari, Fiqh and Islamic

economics.

7/27/2019 IFP - Aug 2012

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Ask UsBy Mufti Ibrahim Essa and Mufti Javed Ahmed

Question:

In a deferred sale contract, is it

permissible to stipulate a

condition that the seller will

retain the subjectmatter into

his ownership until the full

payment of the price?

Answer:

A seller is not allowed to

stipulate, after conclusion of a

sale contract, a right to retain

an asset sold on a deferred

basis, as security for payment.

This is because the legal effect

of a sale contract is the transfer

of ownership of the asset sold.

However, it is permissible for

the seller to stipulate that the

buyer should release the sold

asset into the sellers custody

as pledge of security so as toensure recovery of the

remaining deferred

installments. It is also

permissible for the buyer to

retain an asset sold on an

immediate payment basis until

the consideration for the asset

is paid.

Question:In an Ijarah transaction, if the

lessee stops using the leased

asset or returns it to the asset

before the term expires, is it

permissible to charge him the

remaining rentals of that

period where the leased asset

was not used by the lessee?

Moreover, can the lessor lease

that asset to another person for

that period?

Answer:

If the lessee stops using the

leased or returns it to the

owner without the owners

consent, the rental will

continue to be due in respect of

the remaining period of the

Ijarah and the lessor may notlease the property to another

lessee for this period, but must

keep it at the disposal of the

current lessee.

7/27/2019 IFP - Aug 2012

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Financial summary of the Islamic banks for the year 2011


Statement of Financial Position Figure in Rs.000

Sr.

No Description

Meezan

Bank

Dubai Islamic

Bank Burj Bank

Al-Baraka

Bank Bank Islami

1. Balances with other banks 2,348,076 1,116,928 2,215,636 7,577,186 549,277

2. Investments 98,488,574 9,982,793 21,067,082

3. Financings 59,155,585 23,340,602 10,509,340 27,610,708 20,110,401

4. Total assets 200,550,394 48,196,449 27,644,829 72,544,879 58,821,314

5. Due to financial institutions 9,235,960 1,898,500 447,300 1,736,120 800,000

6. Deposits and other accounts 170,030,431 38,491,607 20,341,241 61,559,026 50,568,785

7. Total liabilities 186,764,043 41,962,400 21,840,251 66,020,396 53,508,676

8. Net assets 13,786,351 6,234,049 5,804,578 6,524,483 5,312,638


9. Profit on financings 18,032,152 4,632,785 2,375,585 6,699,178 5,502,154

10. Return on deposits 8,665,622 2,395,995 1,423,171 5,001,222 2,883,355

11. Provisions 1,389,155 10,075 251,580 (227,176 ) 21,423

12. Net spread after provisions 7,977,375 2,226,715 700,834 1,925,132 2,597,376

13. Total other income 2,504,755 457,136 188,537 482,058 226,709

14.

Administrative and other

expenses 6,125,830 2,367,722 1,236,279 1,926,488 2,215,498

15. Profit / (Loss) before taxation 4,356,300 316,129 (346,908) 480,702 608,587

16. Profit / (Loss) after taxation 3,391,543 190,486 (288,488) 410,370 409,556

Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for the

year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data

presented here and will not assume any liability due to any loss or damage caused by the usage of the information presentedhere. User discretion advised.

IBIs and IBDs analysis was reported in previous issues separately. They are being reported together again in this issue to

provide a comparison between them.

7/27/2019 IFP - Aug 2012

12/13

Financial summary of the Islamic bank divisions for the year 2011



Sr.

No Description ABL BAHL BOK FBL UBL BAFL

1. Balances with other banks 528,613 494,968 530,736 173,799 1,714,138 5,842,516

2. Investments 9,818,059 1,362,945 7,722,833 5,586,837 4,490,991 42,926,997

3. Financings 3,036,063 5,359,450 3,071,604 4,974,329 521,109 -

4. Total assets 14,956,845 8,319,891 12,612,588 12,651,579 8,791,159 6,231,385

5. Due to financial institutions - 1,192,491 - - - -

6. Deposits and other accounts 11,842,633 5,447,863 10,058,574 10,977,485 8,155,280 80,780,324

7. Total liabilities 14,037,447 7,045,815 10,734,306 11,846,582 8,303,333 87,104,550

8. Net assets 919,398 1,274,076 1,878,282 804,997 487,826 6,231,385


9. Profit on financings 1,312,988 1,029,044 1,249,127 1,117,006 595,492 8,062,131

10. Return on deposits 831,691 569,686 393,780 597,956 437,892 4,345,541

11. Provisions 78,301 - 28,887 16,463 29,874 39,521

12. Net spread after provisions 559,598 459,358 826,460 502,587 187,474 2,752,892

13. Total other income 59,006 41,383 89,533 23,275 40,946 573,840

14.


expenses 520,055 128,635 424,188 395,586 216,494 1,896,235

15. Profit / (Loss) before taxation 98,549 372,106 491,805 130,276 11,926 1,430,497



presented here and will not assume any liability due to any loss or damage caused by the usage of the information presentedhere. User discretion advised.

The analysis of IBDs is reported again with the inclusion of Bank Al Falah Limited (BAFL) which was not in-

cluded in the previous issue as its financial data was not available. Previously SCB was reported as the highest profitbefore taxation among all the IBDs with a profit of 1.2 billion whereas now with the inclusion of BAFL it is the

leading IBD with a profit of 1.4 billion in FY 2011. The increase in profit of BAFL is 16% compared to SCB in the

FY 2011. BAFL net assets are of 6.2 billion and SCB net assets are of 3 billion. Detailed comparative analysis of the

IBDs was covered in our previous issue of July 2012.

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Financial summary of the Islamic bank divisions for the year 2011



Sr.No Description HBL MCB SBL SCB HMB

1. Balances with other banks 16,606 - 26 1,744,661 -

2. Investments 12,648,185 2,938,706 606,897 5,923,668 10,050,774

3. Financings 933,881 5,611,142 1,764,097 14,335,084 6,446,125

4. Total assets 15,738,926 13,223,995 2,998,169 28,705,376 18,610,310

5. Due to financial institutions - - 123,975 1,922,500 -

6. Deposits and other accounts 11,944,594 7,305,780 2,171,638 16,533,520 14,747,474

7. Total liabilities 14,570,074 12,032,397 2,745,811 25,783,554 17,041,077

8. Net assets 1,168,852 1,191,598 252,358 2,921,822 1,569,233


9. Profit on financings 2,086,280 1,422,236 398,079 2,355,604 2,094,756

10. Return on deposits 1,214,450 979,325 353,530 627,700 1,452,193

11. Provisions 365,363 36,743 157,332 185,514 73,602

12. Net spread after provisions 506,467 406,168 (112,783) 1,542,390 568,961

13. Total other income 42,599 114,519 145,012 461,967 69,407

14.


expenses 240,084 344,353 165,991 797,869 99,435

15.

Profit / (Loss) before

taxation 308,982 176,334 (147,219) 1,206,488 538,933



presented here and will not assume any liability due to any loss or damage caused by the usage of the informationpresented here. User discretion advised.

ifp - aug 2012

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