SB Annual Report 2018 PDF

STROKE OF
THE HUMAN
ELEMENT
ANNUAL
REPORT
2018
We at Soneri Bank believe that
human lives are more than just a
set of numbers, they are an
amalgamation of dreams, desires
and struggles. We understand our
customer’s journey and aim to
simplify their lives by adding a
compassionate human touch to
banking. Every relationship that
we build is not just a financial
transaction - it is a connection that
lasts for a lifetime.
CONTENTS
Vision, Mission .................................................................................................... 04 Cash Flow Analysis.............................................................................................62

Core Values ......................................................................................................... 06 Market Statistics of SNBL Shares....................................................................63
Key Financial Highlights................................................................................... 08 Chairman’s Review ............................................................................................ 64
Technology........................................................................................................... 10 Directors’ Report to Shareholders................................................................. 66
An Element of Growth ........................................................................................12 Statement of Internal Controls........................................................................86
CSR ........................................................................................................................ 14 Code of Conduct.................................................................................................87
Products and Services ........................................................................................18 Mechanism Adopted For Board’s Performance Evaluation..................... 90
Board of Directors ............................................................................................. 30
Statement of Compliance with Listed Companies
Leadership Team.................................................................................................34 (Code of Corporate Governance) Regulations, 2017................................. 91
Quality Initiatives................................................................................................38
Independent Auditor’s Review Report to the Members on the
Organisational Structure...................................................................................42 Statement of Compliance Contained in Listed Companies
(Code of Corporate Governance) Regulations, 2017.................................95
Corporate Information...................................................................................... 44
Independent Auditors’ Report to the Members ..........................................98
List of Committees of the Board of Directors ............................................ 45
Statement of Financial Position .....................................................................101
Board and Committees’ Meetings ..................................................................47
Profit and Loss Account..................................................................................102
Management Committees................................................................................ 48
Statement of Comprehensive Income .........................................................103
Key Performance Indicators............................................................................ 50
Cash Flow Statement.......................................................................................104
Six Years Financial Summary............................................................................51
Statement of Changes in Equity ...................................................................105
Per Branch Performance .................................................................................. 54
Notes to the Financial Statement .................................................................106
Concentration of Advances, NPLs,
Report of Shari’ah Board ................................................................................ 182
Deposits and Contingencies & Commitments ...........................................55
Notice of the Annual General Meeting ........................................................184
Maturities of Assets and Liabilities.................................................................56
Jama Punji .......................................................................................................... 188
Key Interest-Bearing Assets and Liabilities..................................................57
Pattern of Shareholding .................................................................................. 189
Statement of Value Addition ...........................................................................58
List of Branches................................................................................................. 192
Quarterly Performance......................................................................................59
List of Foreign Correspondents .................................................................... 198
Six Years’ Vertical Analysis.............................................................................. 60
Six Years’ Horizontal Analysis.......................................................................... 61
AN ELEMENT OF
FOCUS
We at Soneri Bank envision to achieve the right banking solutions
and are constantly looking to add a lens of perfection to all our
approaches. With the aspiration to create the best financial solutions
for our customers, we remain in the quest for excellence through
innovation in all our actions.
VISION
To better serve customers to help them and the society grow.
MISSION
We provide innovative and efficient financial solutions to
our customers.
AN ELEMENT OF
COLLABORATION
We at Soneri Bank believe in providing best financial solutions that suit
the needs of our customers. We hold immense value in the strong
bond we create with our customers for a lifetime.
CORE VALUES
We believe in the following principles and core values that maintain
uniformity in all our dealings.
WE ARE CUSTOMER CENTRIC

We build strong long-term relationships with our customers.
We believe in exceeding our customers’ expectations.
We believe in connecting with our customers through empathy and
understanding.
WE HAVE HIGH MORAL STANDARDS

We build a culture of trust.
We are open, honest and fair in all our dealings.
We base our work on trust and integrity.
WE TAKE OWNERSHIP
We take responsibility and accountability for what we do.
We stand up for what we believe is right.
We accept the consequences of our decisions and actions that we take.
WE ARE PRO-ACTIVE
We plan ahead.
We make swift and timely decisions and value time as our asset.
We strive to stay ahead by anticipating change and forecasting risk.
WE COLLABORATE
We are one team with one vision.
We encourage and support diversity across all channels.
We value teams within and across business units.
KEY FINANCIAL
HIGHLIGHTS
TOTAL ASSETS
Rs. 382.50
CAPITAL ADEQUACY RATIO
BILLION
14.70%
SHAREHOLDERS' EQUITY PROFIT BEFORE TAXATION
Rs. 17.99 BILLION

Rs. 2.90
BILLION
EARNINGS PER SHARE
Rs. 1.62
DEPOSITS
Rs. 262.38
BILLION
ADVANCES TO DEPOSIT RATIO TRADE VOLUMES
74.26% Rs. 367.16

BILLION
AN ELEMENT OF
ADVANCEMENT
We at Soneri Bank believe in the culture of maximising technology
by employing robust systems, speedy processes and innovative
solutions, all of which contribute to the digital advancement of our
product offering. These advancements not only help us ensure
customer security at the highest level but shall also provide class
leading convenience in our imminent digital products.
TECHNOLOGY
AN ELEMENT OF
GROWTH
1991 1992 2000 2004 2008 2013 2015 2016 2018

The Soneri Widening Setting
Dawn Surpassing
Horizons Accelarating Milestones Roshan Har
The First Step Benchmarks Charting the
Soneri Bank was
Growth Qadam Embarking
incorporated on
Soneri Bank Soneri Bank on the Soneri Bank Course
Soneri Bank grew its Soneri Bank introduced Soneri Bank celebrated its 25
28th September, took its first step footprint launched Islamic customised launched its new Digital glorious years Today, Soneri Bank
1991. by establishing
the first
through its Banking-Mustaqeem. products and identity ‘Roshan Journey of banking. is accessible across
branch and ATM services for the Har Qadam’ with the country with
5 branches. network across its branch
betterment and a promise to Soneri Bank
major cities of convenience of enlighten lives of with the vision network of more
the country. its customers. its stakeholders to enhance and than 290 branches
and customers. facilitate the and 300+ ATMs.
customer
experience
launched its
Mobile App.
AN ELEMENT OF
COMPASSION
We at Soneri Bank consider investing in the future of our people
through our health and education initiatives, creating opportunities
for people with potential to uplift their lives as well as the community
at large.
CORPORATE SOCIAL
RESPONSIBILITY
CORPORATE SOCIAL
RESPONSIBILITY (CSR) ACTIVITIES
Development In Literacy (DIL)

Soneri Bank has aimed to enrich the society in all walks of life by truthfully embracing its brand promise of Roshan Har DIL educates and empowers underprivileged students, especially girls, by opening student-centred model schools and providing
Qadam. With the spirit of the Sun that universally shines on everyone, In 2018, our CSR activities embodied principle high-quality professional development to teachers and principals throughout Pakistan. Their ideology resonates with Soneri Bank i.e
of diversity and making an impact for the betterment of fellow beings. This year the major focus of the bank was in the every child should have equal opportunity to reach their full potential and contribute towards the socio-economic betterment of their
field of Health, Education and Community Development. The other areas of focus included promoting Arts, Sports and
countries. Soneri Bank further pledged to this cause by participating in their annual fund raising event.
Women Empowerment. Community Development
Soneri Bank participated in various community development initiatives to further uplift the economy and well-being of our society.
Contribution To Healthcare Pakistan Carpet Manufacturers & Exporters Association

Soneri Bank believes in providing quality life to individuals of society. In the same spirit, generous contributions were made to various In order to uplift the export community, Pakistan Carpet Manufacturers & Exporters Association annually holds an International Exhibition
organisations working towards the health sector by the Bank. for promotion of exports in Pakistan of hand-knotted carpets. The event is attended by businessmen from all over the globe thus
boosting our economy. Soneri Bank supported the association by participating in the event.
The Kidney Centre (TKC) Karachi Wholesale Grocers Association
The Kidney Centre (TKC) is a non-profit organisation with an up-to-date medical facility which is providing comprehensive and quality renal KWGA is an association working towards the betterment of economy through channelising the wholesaler community and emphasising
care to thousands of underprivileged patients. Soneri Bank took the opportunity to support one of its fund raising events of the year. the role of wholesalers in the business fraternity. Soneri Bank believes in the strength of this part of business and sponsored their
Karwan-e-Hayat – Institute Of Mental Healthcare annual dinner to further extend its support to them.
Karwan-e-Hayat is a non-profit organisation, dedicated to the cause of mental health in Pakistan. It has been providing free or largely Maintenance of Water Filtration Plant
subsidised mental healthcare to an underserved section of our society since 1983. The clinics and hospitals provide psychiatric treatment Soneri Bank extended its support towards annual maintenance of a water filtration plant located in a village at Nathuwala Chak no
mainly to the poor and underprivileged. Soneri Bank supported the institute by participating in their annual fund raising event. 180. This is one of the many small scale initiatives taken by the bank towards elevation of society at grass-root level.
Friends of Pink Ribbon Pakistan – United Against Breast Cancer Women Empowerment
Pink Ribbon Pakistan – a project of Women’s Empowerment Group is a non-funded, self-sustained campaign, mostly supported by Women Empowerment is one of the many causes strongly supported by Soneri Bank over the years. This year as well, Soneri Bank
contributions through public philanthropy and driven by a large number of volunteers all over the country. The mission of Pink Ribbon contributed to the cause through various platforms.
Pakistan is to develop Pakistan’s first dedicated breast cancer hospital with state-of-the-art medical equipment in order to fulfill the
dire need of approximately 9.8 million women who are at a risk of breast cancer in Pakistan. Soneri Bank pledged to this cause by International Women Leaders’ Summit
monetary contribution towards building of the hospital and contribution in annual fund raiser event. Soneri Bank was part of International Women Leaders’ Summit in 2018. The conference was a professional forum to collate successful
and diversified professional women leaders across the globe to impart and integrate their experiences at a local forum for an exchange
National Institute Of Child Health (NICH) – OAKS of broader perspectives and learning.
OAKS is the alumni association of Kinnaird College for Women. Both OAKS and NICH have a relationship over the years in which
funds have been raised for lifesaving medical equipment for the hospital which includes ventilators, incubators and special thalassemia Behbud Association Karachi
testing machinery. Soneri Bank supported this cause by participating in the annual fundraiser. Behbud Association Karachi is a well-known NGO conducting the development programmes in the areas of health, education, women
empowerment and vocational trainings for many years. Soneri Bank supported their cause of serving humanity by contributing in their
Lady Dufferin Hospital Behbud Spring Fiesta.
Lady Dufferin Pakistan’s largest and well known hospital for women that provides quality healthcare to all socioeconomic groups at
subsidised rates. To improve the healthcare facilities of the organisation, Soneri Bank extended its support by sponsoring its annual Attock Sahara Foundation
fund raising event for society’s prosperity. Attock Sahara Foundation (ASF) is a welfare based non-profit organisation by Pakistan Centre of Philanthropy (PCP) which has been
serving the community since 1966. Its aim is to play a vital role in uplifting the socio-economic conditions of the surrounding communities
Pakistan Foundation Fighting Blindness through various welfare projects. Soneri Bank supported their mission by participating in their Annual Meena Bazaar event.
Pakistan Foundation Fighting Blindness (PFFB) has been actively participating in activities to create awareness about partially sighted
and Visually Impaired Persons (VIPs) through provision of Education, Training, Assistive Aids and Counseling. Soneri Bank contributed Karachi Women’s Swimming Association (KWSA)
to this cause by participating in their annual fundraising gala dinner. KWSA is an organisation working towards uplifting sports among women, especially swimming. KWSA hosted a swimming tournament
in which Soneri Bank participated. Such events provide a platform for Pakistan’s women swimmers to compete at a national level,
Roohbaru – Society For Mental Health and hone their talents to participate in prestigious international swimming events.
Roohbaru is a non-profit organisation founded to create awareness about mental health, provide online consultations with mental
health professionals and provide an on-demand mental health and well-being platform to all with an aim to raise awareness on mental Promoting Sports
health and the stigma associated with it. Soneri Bank supported the cause by participating in their Launch Event. Continuing with our support towards sports since many years, this year Soneri Bank not only sponsored an international event held
in Pakistan but also a few individual players.
Empowering Education
With the focus in the field of education, Soneri Bank generously supported and promoted various educational organisations for its International Squash Tournament
development. Defence Authority Creek Club (DACC) had organised International Squash Tournament after six years with the vision to promote a
positive image of our country through Squash, a sport for which Pakistan is known to produce remarkable players. The tournament
The Citizens Foundation helped in further showcasing our country’s talent worldwide. Soneri Bank sponsored this event with the vision to promote the culture
The Citizens Foundation (TCF) a non-profit organisation brings positive social change through education. It is one of Pakistan’s leading of sports within country.
organisations in the field of education for the less privileged. To support TCF’s cause of improving the literacy rate of Pakistan, Soneri
Bank sponsored a fundraiser ‘Loh Bhee Tu Qalam Bhee Tu – A Tribute to Allama Iqbal’ to help TCF in its noble cause. Supporting Golfer
In the spirit of promoting new talent and ambitious people to achieve their dreams, Soneri Bank sponsored an inspiring golfer, to
Rotary International represent the Bank in various tournaments nationwide.
Rotary International have been serving the humanity across the globe through its mission which is to enable Rotarians to advance
world understanding, goodwill and peace through improvement of health, support of education and alleviation of poverty. With this Promoting Arts
spirit, Rotaract Club organised Rotacon 2018 – One Team One Dream. Soneri Bank extended its support by sponsoring the conference Keeping the strength of our bond with artist community, Soneri Bank sponsored one of the highlighting art events of 2018.
to uplift Rotary’s initiatives for the betterment of society.
Karachi Arts Festival
Karachi Arts Festival was organised by Nigaah Arts Magazine with the vision to promote, support and encourage local art and artists
from across Pakistan.
16 SONERI BANK LIMITED SONERI BANK LIMITED 17

AN ELEMENT OF
DIVERSITY
Just like a palette of assorted hues, we at Soneri Bank paint the lives
of our customers by offering them tailor-made solutions that are
designed to provide lucrative products and services catering to all
their financial needs.
PRODUCTS AND
SERVICES
PRODUCTS AND SERVICES
At Soneri Bank, we strive to offer the most vibrant range of products and services to exceed
our customer’s expectations. Our commitment to the customers is to leverage our brand
promise ‘Roshan Har Qadam’ by constantly innovating our products suite to best match the
personal and business needs of our customers, including Commercial, Retail & Corporate
and Islamic segments. With our corporate vision ‘To better serve the customers to help
Real-time Speed Finance Personal
them and the society grow’, and our mission ‘To provide innovative and efficient financial salary transfer Loan
solutions to our customers’ we serve them with excellent solutions and constantly raise our
performance standards.
Car Finance Bancassurance Payroll Solution
Soneri Current Account Silver Gold Platinum
Current Accounts Soneri Current Account lets our customers enjoy a host
of free banking services with no restriction on the number Soneri Pensioners Account Soneri INSTA PAY Payroll Solution
Customers can open any current account for
of transactions. It also provides complete peace of mind Soneri Bank branch network across Pakistan facilitates It is an efficient employee payroll solution for companies.
their transactional needs and enjoy banking
with free Worldwide Accidental Insurance and ATM in opening of Pensioners Account. Branches effectively The product is a bundled proposition providing one-stop
convenience offered via over 290 branches
Withdrawal Coverage. coordinate with various pension disbursing departments tailored solution, catering to the specific needs and
and a growing network of 300+ ATMs across
to ensure hassle-free disbursement/credit of pension in requirement of the client and its employees.
the country. Our current accounts include: Basic Banking Account the respective pensioner’s account.
It is a non-profit bearing account with no minimum balance
requirement. Initial deposit for account opening is
Soneri Ikhtiar Account Rs.1,000/-. Unrestricted number of withdrawals from
Soneri Ikhtiar is the flagship current account which is Savings Accounts
the account through ATMs are permissible subject to
ideally suited for businesses in search of a convenient applicable per day withdrawal limit for amounts in force. Soneri Bank offers a complete range of savings products with attractive returns. These accounts are designed to
and feature-rich bank account to fulfil their daily banking cater to the specific needs of individuals, senior citizens and corporate entities. Our savings product suite includes:
needs. This account offers numerous free facilities,
including: Banker’s Cheque Issuance, Online Banking,
PLS Savings Account
Cheque Books, Standard Master Debit Card and much
Basic deposit account with no minimum balance
more. In addition, Soneri Ikhtiar Account offers free
requirement. It can be opened with an initial deposit of
Worldwide Accidental Insurance and ATM Withdrawal
just PKR 100/-. The complete range of ADC services is
Coverage to help protect customers and their loved
offered on this account, including: Standard Master
ones.
Debit Card, Internet/Mobile Banking, Online Banking Rupee
and SMS Alerts. Term
Soneri Savings Account
Deposits
Flexible and fast growing cumulative monthly profit
account. The rate of profit on this account increases
with the account balance as per the defined tiers.
Soneri Asaan Account Soneri Rupee Term Deposits
The complete range of ADC services is offered on
Soneri Asaan Account offers a simple and convenient Soneri Term Deposits are for customers who intend to
this account.
way to fulfil all banking needs with minimum documentation retain their savings for a fixed period and earn a higher
requirement. It is offered in both current and savings Soneri Sahara Account rate of profit. Term Deposits allow customers to save a
account types and is suitable for self-employed individuals, A savings account for senior citizens to meet their basic fixed amount in Rupees for a set period ranging from 1
students, housewives and daily wagers. banking needs. The account can be opened singly or month to 3 years at attractive profit rates. The depositor
jointly (husband & wife) provided either of them is 60 has the option to reinvest the deposit automatically with
years of age or above. Our customers can enjoy high or without profit.
returns on their savings every month with the flexibility
of withdrawing profits anytime.

Soneri Diamond Deposits (Monthly Income Scheme) FCY Term Deposits Prime Minister Youth Business Loan Soneri Personal Finance
Soneri Diamond Deposits provide investment opportunities Soneri Bank’s Foreign Currency Term Deposit offers (PMYBL) Scheme An easy solution to your cash needs – now you can turn
to customers looking for additional monthly income with competitive profit rates for any selected term of up to 1 The Government has introduced Prime Minister’s Youth your dreams into reality via Soneri Personal Finance
an attractive return. Customers will earn monthly profit on year. It is an ideal investment to help customers save in Business Loan Scheme with a mark-up subsidy and partial Scheme. Soneri Bank offers Personal Finance up to
their investment for a period ranging from 1 to 3 years. foreign currency and see their deposit grow over time. guarantee facility for extension of small business loans. Rs.500,000/-, repayable up to 5 years in equal monthly
The scheme was launched by the Prime Minister for instalments to meet personal financial needs. Option of
Soneri Roshan Munafa promoting youth entrepreneurship in the country. The partial payment and early payment also available.
Soneri Roshan Munafa is a term deposit targeted towards main objective of the PMYBL Scheme is to provide loans
Medium to High Net Worth individuals, senior citizens, Financing Products for to the unemployed youth for establishing or extending
housewives and commercial and corporate entities looking Commercial & Retail Banking business enterprises. As an Executing Agency, Soneri Agriculture Financing
for high returns to meet their financial needs. This is a 1 Bank is also offering loans under this scheme.
Soneri Bank ensures meeting all banking needs
year term deposit which can be booked with a minimum
of its customers by offering variety of financing
amount of Rs. 50,000/- and a maximum amount of
Rs.100,000,000/-. The rate currently being offered on this
products to facilitate them to grow their
businesses and also contribute their share Be Young & AGRICULTURE FINANCING
product will be periodically updated as per the interest
rate scenario. This product also offers financing facility of
towards industrial growth of the country. The
Bank is also committed to play its role towards
Successful!
up to 80% of the deposit amount.
strengthening the SME sector by encouraging
quality players to avail credit facilities through
our nationwide branches, empowering them
to grow beyond financial limitations. In addition
to our conventional financing products including
Running Finance, Cash Finance, Term/Demand
Finance, Letter of Credits (LCs), Finance against
Imported Merchandise (FIM), Finance against
Trust Receipts (FATR) and Letter of Guarantees Agriculture contributes a handsome share in GDP of our
(LGs), the Bank also offers the following specific Consumer Finance country & livelihood of a large number of rural population
financing products to help its customers to is based on this. Soneri Bank offers various Agriculture
operate their businesses without worrying Financing Products – conventional as well as Islamic for
Soneri Car Finance
about funding requirements. the Farming/Rural communities to meet their working
Now you can become the owner of a brand new car
capital/development needs. All these products help them
through Soneri Car Finance Scheme. Soneri Bank offers
grow their agriculture produce & livelihood. Following
Car Finance facility up to Rs.3 million, repayable up to 5
Agriculture Financing Products are available for the uplifting
Soneri Foreign Currency Accounts Soneri Speed Finance years in equal monthly instalments. Option of used and
of Agri Economy:
Dealing in foreign currencies is no more a hassle. Soneri Soneri Speed Finance is focused towards providing quick reconditioned cars is also available. Processing of application
Bank offers FCY Current, Savings and Term Deposit and flexible financing solutions to its customers while is fast and hassle-free with partial payment and early
· Farm Production Loans – Revolving Credit
accounts to cater to the foreign currency transactional keeping their savings secure. This product is offered to settlement options.
· Farm Development Loans
and saving needs of the customers with a host of attractive Individuals, Small & Medium Enterprises, commercial and
· Tractor & Implements Loans
features. corporate businesses for meeting their business needs.
· Non-Farm Working Capital Loan – Dairy Farming
It has been designed to provide hassle-free and swift
· Non-Farm Development Loan – Dairy Farming
financing solutions to meet both the short and long term
· Non-Farm Working Capital Loan – Poultry Farming
financing needs of the customer. It is primarily secured
· Non-Farm Development Loan – Poultry Farming
against liquid security including Soneri Bank’s deposits
· Non-Farm Working Capital Loan – Fish Farming
(LCY & FCY Term Deposits, Cash Margin, Lien on Account)
· Non-Farm Development Loan – Fish Farming
and Government Securities (DSC/SSC/RIC).
· Non-Farm Working Capital Loan – Cattle Farming
CURRENCY · Non-Farm Development Loan – Cattle Farming
ACCOUNT
· Value Chain – Contract Farmers Financing
· Mustaqeem Tractor loans
· Ijarah

SMS Alerts
Home Remittance Alternate Delivery Channel Our customers can now get SMS Alerts on their Protection and Coverage
Financial Transactions, and can also get an early Products
intimation of any unauthorised transaction to safeguard Soneri Bank offers a variety of exclusively
Soneri Bank under guidance of Pakistan Remittance ATMs
their hard earned money. designed Bancassurance conventional and
Initiative (PRI) (a joint venture of State Bank, Ministry of With a growing network of 300+ ATMs across the country,
Finance and Ministry of Overseas Pakistanis, Pakistan), our customers can conveniently withdraw cash and avail Takaful products that cater to the protection,
started Home Remittance Payments Disbursement Initiative ancillary services through our ATMs. savings and investment needs of its customers.
in July – 2012. In a very short span of time and with Bancassurance is one of the best purchases
exceptional customer support and service delivery standards, Soneri Debit Card for the future of customers’ family. Soneri
Soneri Bank managed to make a positive contribution Shop and pay conveniently throughout more than 25 Bank offers advice from certified professionals
towards Home Remittance Business. Soneri Bank has Million merchants and more than 1 Million ATMs for Cash with expertise to help tailor customised
recognised the potential in Home Remittance business Withdrawal Facility all around the world. coverage plans for customers’ family's individual
and therefore brands its business with the service name needs. Few of these products are:
of ‘Soneri Mehnat Wasool Remittance’. Soneri Mehnat
Wasool Remittance offers unmatched services for overseas
Pakistanis to send money home fast and free at no cost Sunehra Saver & Sunehra Saver Takaful
across Pakistan. With our branch network of over 290 These are Soneri Bank’s Bancassurance plans that
branches in 130 cities, Soneri Bank has already established encourage our customers to save at an early stage of
the relationship with many Global Exchange Companies their career to cater to their midlife family expenses. It is
i.e. Moneygram, RIA Money Transfer, Cash Express, Small an affordable plan for young executives, entrepreneurs,
World, Xpress Money in different regions of Gulf Countries, middle aged professionals, working ladies and housewives.
UK, America and Canada to facilitate its customers. The plan is designed to meet the future financial needs
Phone Banking like, wedding, education, house purchase, starting a business
Customers can meticulously access their accounts 24/7 or expansion of an existing enterprise of the assured.
with distinctive services using Soneri Phone Banking,
Internet Banking including ATM Debit Card Replacement, Stop Cheque
Real Time Balances, Account Statements, Funds Transfers, Request, Banker’s Cheque, ATM Debit Card Account
Utility Bills Payments and many more. Linking/De-Linking, Cheque Book request, E-Statement
& Account Statement request. Simply dialling
Mobile Banking +92-21-111-SONERI (766374) can give a lot of ease to
Mobile Banking services are there so that our customers customers and will help fulfill their financial needs with just
can have access to their accounts anytime and anywhere a call.
via mobile phones. Our customers can view account
statements, perform funds transfer, get mobile top-ups
and also pay their your utility bills on the go.
Roshan Aghaz & Roshan Aghaz Takaful

These Bancassurance plans encourage parents to save
money for their child’s higher education and provide
protection in case of an eventuality. In the unfortunate
event of death of the assured parent during the savings
term, the built-in ‘Education Continuation’ benefit ensures
that the targeted fund at maturity is achieved.

Roshan Takmeel Sunehra Ehad Takaful Rahat Mustaqeem Account
This is a savings plan especially designed for those This plan offers a unique combination of savings, investment Soneri Mustaqeem – Rahat Account is a flagship
individuals who wish to have financial independence & protection. It provides Takaful coverage that is in line remunerative-current account on the basis of Mudarabah
post-retirement, wish to retire early or to top-up their with Shari’ah Principles. Sunehra Ehad enables customers which is ideally suited for businesses in search of a
existing pension plan. The plan is ideal for self-employed to build income for events like child education, daughter’s convenient and feature-rich bank account to fulfil their
and professionals like doctors, dentists, architects, marriage, building/renovation of house or planning for daily banking needs. This account offers numerous
lawyers, engineers and financial consultants. It is also carefree life after retirement. free facilities.
suitable for employees having benefits of provident funds.
Capital Plus & Capital Plus Takaful
Karobar Muhafiz This plan is designed for High Net Worth (HNW) customers
This Bancassurance plan covers the lives of two individuals of Soneri Bank, it offers higher investment returns along
(or business partners) simultaneously allowing business with benefit of family’s financial protection (insurance
Sunehra Cash Builder
continuation/succession in case of eventuality. It includes coverage). Loyalty bonus starts from the fifth year
This is a regular premium Bancassurance product where
benefits like hospitalisation, critical illness, accidental (commonly starts from the 10th year.)
the premium paid will be credited to customer’s individual
disability and death benefits. SMEs, large enterprises account to be invested as per the chosen investment
and partnerships can avail this plan to ensure stability strategy. Sunehra Cash Builder is intended for far sighted
of their businesses. Professional practitioners like doctors, individuals who want a secure future for themselves and
dentists, accountants, lawyers, architects, engineers etc. their loved ones at the same time reaping benefits on
can also use this plan to their advantage. their hard earned incomes. This plan ensures that our
customers achieve their respective goals even when our SAVINGS ACCOUNTS
customers are unable to continue their regular income.
KAROBAR Soneri Mustaqeem - Bachat Account
MUHAFIZ Sunehra Income Builder Bachat account is a kind of remunerative account offered
Plan ahead for a secure partnership
This plan provides insurance cover in the form of guaranteed to Customers with small savings and looking for a Halal
sum assured offering parallel returns on premium return on their deposits. It is based on the concept of
investment. Be it an objective of saving for your child’s Mudarabah where the depositor acts as an Investor
education, marriage of your progeny, building/buying a (Rab-ul-Maal) and bank acts as the Manager (Mudarib)
home for yourself and your family, or starting/expansion Soneri Mustaqeem of the funds deposited by the customers. It also offers
of business, Sunehra Income Builder plan is a one stop wide range of services that cater to the banking needs
Islamic Banking
solution for all our customer’s financial needs. of our customers.
Soneri Mustaqeem Islamic Banking offers
Pearl & Pearl Takaful a broad range of 100% Shari’ah compliant Soneri Mustaqeem - Munafa Account
This Bancassurance plan is designed for High Net Worth Sunehra financial solutions for our customers. Our Soneri Mustaqeem - Munafa Account provides a regular
(HNW) customers of Soneri Bank, it offers higher investment Income Builder Islamic Portfolio includes: stream of monthly income with same convenience and
service of a regular savings account. Through this, our
returns along with the benefit of family’s financial protection Multi-Purpose Savings Plan
(insurance coverage). A unique medical coverage (MediPal) valued customers can manage their short-term as well
is offered besides loyalty bonus that starts from the fifth year.
CURRENT ACCOUNTS as long term savings without any transactional restrictions.
Soneri Jari Account Soneri Mustaqeem - Meaadi Account
PEARL
Jari Account is a kind of Current Account (No profit and Soneri Mustaqeem - Meaadi Account is an alternative
Loss account) that provides the convenience of putting of TDR for those customers who intend to retain their
SECURE LIFE HIGHER RETURNS
money in account and accessing it without any restrictions savings for a fixed period and earn a higher rate of profit.
on withdrawal while enjoying a host of professional Term Deposits allow customers to save a fixed amount
conveniences from our bank. This account is based on in Rupees for a set period ranging from 1 month to 3
the Islamic principle of Qardh. years at attractive profit rates. The depositor has the
option to reinvest the deposit automatically with or
without profit.

Soneri Mustaqeem - Asaan Account Supply Chain Management political development. CPEC has the potential to transform
Soneri Asaan Account offers a simple and convenient Corporate & Investment Banking Being a provider of financial services, we offer end-to-end Pakistan into a regional hub for trade and investment
way to fulfill all banking needs with minimum documentation supply chain financing solutions to dealers & vendors of and provide a unique opportunity to boost its strategic
Soneri Bank’s Corporate & Investment Banking
requirement. It is offered on both current and savings our corporate customers to meet their business and economic position. Revival of economy in the coming
is well equipped to meet the requirements of
account types and is suitable for self-employed individuals, requirements. period is bound to make Pakistan an attractive destination
our corporate clients. We have regional offices
students, housewives and daily wagers. for foreign investors.
in Karachi, Lahore and Islamabad which offer Cash Management
extensive coverage. Soneri Bank’s Cash Management services coupled with The present government is also committed to widening
Our team of Relationship Managers and Team our next generation, web-based Cash Management the scope of the China-Pakistan Economic Corridor
Leaders are fully geared to establish meaningful System ‘Soneri Trans@ct’, provides our valued customers (CPEC). During the Prime Minister’s visit to China, Prime
relationships with our Corporate & Institutional with comprehensive, one stop solution for cash flow Minister Imran Khan commended President Xi Jinping’s
clients including public sector entities to management, i.e. Receivables and Payables Management, visionary Belt and Road Initiative (BRI) that aims at
become partners in their growth by acting as in the most effective and efficient manner. enhancing regional and international connectivity. The
financial advisors, effectively catering to their
two sides reaffirmed their complete consensus on the
financial needs and offering financial solutions Our Cash Management services, comprise a full array future trajectory of the CPEC, timely completion of its
through the following suite of products: of products & services, designed and tailored to enable on-going projects and joint efforts for the realisation of
our Corporate, Commercial and SME customers to
securely exchange funds and financial information in
Working Capital & Trade Finance Facilities real-time with their trading partners, for optimal management
Our corporate banking team is equipped with the required of working capital.
knowledge to contribute towards the sustainable growth
Soneri Car Ijarah of our clients by offering innovative, diverse and flexible
Car Ijarah is Soneri Bank’s car financing product which solutions to meet their working capital needs, trade
China Desk
is interest-free car financing. It is based on the Islamic related solutions and expansion support.
financing mode of Ijarah (leasing). This product is ideal
for individuals who want to get interest-free financing for
acquiring a car.
Car Ijarah works through a car rental agreement, under

which the Bank purchases the car and rents it out to the
customer for a period of 1 to 5 years, agreed at the time
of the contract.
Investment Banking its full potential with a focus on socio-economic development,

The Investment Banking Wing offers structured financial job creation and accelerating cooperation in industrial
solutions and aims to establish strategic long term China, Pakistan Economic Corridor (CPEC) is a development, industrial parks and agriculture.
relationships with our clients. This segment is well multi-dimensional and mega developmental project, with
equipped to offer Advisory services catering to various billions of dollars worth of investment and undoubtedly The bank is also focused on CPEC projects. In addition
requirements such as Financial, M&A, Equity/Debt Capital a game changer with the potential to boost Pakistan’s to a Chinese Business Unit in Islamabad, the bank is
Markets, Project Financing and Debt Syndication. Building economy, improve infrastructure, expedite trade and going to establish an another unit in Karachi and one in
upon Soneri Bank’s established relationships within the commerce activities, overcome energy crisis, alleviate Lahore. These units cater to the banking requirements
local market, the Investment Banking Wing identifies and poverty, generate excellent employment opportunities of Chinese customers by providing tailor-made solutions
helps unlock greater value for the Bank’s customers. and usher Pakistan in the era of social, economic and under one roof.

AN ELEMENT OF
GUIDANCE
We at Soneri Bank believe in the expertise and the direction of our
highly capable and far-sighted team of professionals whose
dedication and professionalism have paved the path of our success.
BOARD OF
DIRECTORS
BOARD OF DIRECTORS
Nooruddin Feerasta Alauddin Feerasta Mohammad Aftab Manzoor Amin A. Feerasta Muhammad Rashid Zahir Manzoor Ahmed Inam Elahi Jamil Hassan Hamdani
Director Chairman President & Chief Executive Officer Executive Director Director Director Director Director

AN ELEMENT OF
LEADERSHIP
We at Soneri Bank stand together as a team and uphold the
principles of teamwork, commitment, dedication and trust so that
together, we can take the bank to greater heights.
LEADERSHIP TEAM
SENIOR MANAGEMENT
Mubarik Ali Amin A. Feerasta Mohammad Aftab Manzoor Mirza Zafar Baig Shahid Abdullah Muhammad Salman Ali Ali Hassan Shah Anita Lalani Muhammad Qaisar Abdul Aleem Qureshi Masood Tyabji Syed Asim Ali Tariq Yar Khan
Country Credit Head Executive Director President and Chief Financial Officer Head of Treasury, Chief Information Officer Head of Operations Head of HR, Head of Corporate and Head of Commercial & Head of Islamic, Head of Audit Chief Compliance
Chief Executive Officer Capital Markets, Legal & General Investment Banking Retail Banking Digital & Products Officer
Services
FI & PRI

AN ELEMENT OF
EXCELLENCE
We at Soneri Bank implement service standards that demonstrate
respect and consideration for the needs of our customers. Thus further
endorsing our value of being a customer centric bank. With our brand
promise of Roshan Har Qadam, we believe in providing experiential
banking to our customers resulting in long-term brand loyalty.
QUALITY INITIATIVES
QUALITY INITIATIVES
2018 has been a significant In line with the State Bank of Pakistan (SBP) guidelines; COMPLAINT HANDLING
requisite deliverables related to Financial Consumer The Bank has a separate function to deal with customer In line with the Consumer Grievance Handling Mechanism
year in terms of embedding Protection (FCP) Framework & Consumer Grievance complaints, named as Complaint Management Unit (CMU). (CGHM) guidelines issued by SBP, the Bank clearly defines
Handling Mechanism (CGHM) have been timely implemented. This function accommodates complaints received through the complaint resolution process, roles and responsibilities
the customer experience As an attestation of “Financial Consumer Protection any source of communication channel including regulators. of people involved right from the receipt of a complaint to
(FCP) Framework” policy which was earlier approved by Brief description of complaint handling procedure and its resolution or disposal.
framework across the bank. It Board of Directors in 2015, a self-assessment of same, details of Key Contact points are available on all customer
has also been a year which Conduct Assessment Framework (CAF) was conducted touch points.
and submitted to the SBP in year 2018. Soneri Bank
has seen noteworthy behavior attained an overall rating of 1.68 (Cautious/Average Below are the key complaint statistics of Soneri Bank for year 2018:
Zone). Overall the bank has performed well on all indicators
change across the board and together with our stakeholders we were able to cover
regarding ownership of the significant ground on Financial Consumer Protection
(FCP) related deliverables. Total Complaint Received: Average within TAT Resolution:
service health of the business
and a rejuvenated will to drive Furthermore, as per the SBP directive, inclusion of
Prohibited Banking Conduct guidelines in the bank’s
19,651 92.27%
improvement. After achieving existing Financial Consumer Protection Policy was
completed. The objective was to ensure that adequate
the milestone of revamping awareness measures are in place, to educate the staff
and consumers about prohibited banking conduct. Total Complaint Resolved: Average Complaint Resolution
the base of customer experience
19,414 Satisfaction ratio (CRS):
structure in 2017, we expanded
85%
Constant monitoring and rigorous training resulted in the
improvement of almost all Key Service indicators. In light (As of December 31, 2018)
our ambit by extending the of improving customer experience at Soneri Bank, various
monitoring mechanisms were launched to assess our
service monitoring to the areas strengths and areas where further improvement was
of Operations, Commercial required. Problem Incident ratio (PIR): Average Complaint Resolution Time:
Banking and Consumer Finance In order to keep the bank’s service benchmarks robust,
Service Recognition Programme was initiated in 2018.
3.21% 07 Working days
(Total book)
Units in 2018. The programme consists of strategic recognition of
service champions across businesses/operations. This
platform assisted in building the necessary drive/
momentum and motivation.

ORGANISATIONAL Head of
STRUCTURE
Retail &
Commercial
Banking
Head of
HR, Legal &
Head of General
Corporate Services
& Investment
Banking
Chief
Board Compliance
Audit Head of Officer
Committee Treasury,
FI and PRI.
Country
Credit
Head of Chief Head
Audit Financial
Officer
Head of
Remedial
Company Management
Secretary
Board of President
Head of
Islamic, Digital
Directors & CEO & Products
Head of
Information
Technology
Executive
Director
Head of
Operations
Shari’ah
Board
Head of Risk
Management
CORPORATE
INFORMATION
CHAIRMAN REGISTERED OFFICE

MR. ALAUDDIN FEERASTA RUPALI HOUSE 241-242,
UPPER MALL SCHEME,
CHIEF EXECUTIVE OFFICER ANAND ROAD, LAHORE - 54000
MR. MOHAMMAD AFTAB MANZOOR
CENTRAL OFFICE
DIRECTORS 10TH FLOOR, PNSC BUILDING,
MR. NOORUDDIN FEERASTA M.T. KHAN ROAD, KARACHI-74000
MR. AMIN A. FEERASTA (EXECUTIVE DIRECTOR)
MR. MUHAMMAD RASHID ZAHIR REGISTRAR AND SHARE TRANSFER AGENT
MR. MANZOOR AHMED (NIT NOMINEE) THK ASSOCIATES (PRIVATE) LTD.,
MR. INAM ELAHI 1ST FLOOR, 40-C,
MR. JAMIL HASSAN HAMDANI BLOCK-6, P.E.C.H.S.,
KARACHI - 75400
CHIEF FINANCIAL OFFICER UAN: (021) 111-000-322
MR. MIRZA ZAFAR BAIG FAX: (021) 341 68271
COMPANY SECRETARY
MR. MUHAMMAD ALTAF BUTT
AUDITORS
A.F. FERGUSON & CO.
CHARTERED ACCOUNTANTS
SHARI’AH BOARD
MUFTI EHSAN WAQUAR AHMAD (CHAIRMAN)
MUFTI MUHAMMAD ZAHID (RESIDENT MEMBER)
MUFTI BILAL AHMED QAZI (MEMBER)
LEGAL ADVISORS
MANAN ASSOCIATES, ADVOCATES
44 SONERI BANK LIMITED

LIST OF COMMITTEES
OF THE BOARD OF DIRECTORS
Audit Committee of the Board
1. Mr. Inam Elahi Chairman

2. Mr. Nooruddin Feerasta Member
3. Mr. Muhammad Rashid Zahir Member
4. Mr. Jamil Hassan Hamdani Member
Mr. Muhammad Altaf Butt Secretary
Credit Committee of the Board
1. Mr. Nooruddin Feerasta Chairman

2. Mr. Alauddin Feerasta Member
3. Mr. Mohammad Aftab Manzoor Member
4. Mr. Muhammad Rashid Zahir Member
5. Mr. Manzoor Ahmed Member
Human Resource & Remuneration Committee of the Board
1. Mr. Manzoor Ahmed Chairman

2. Mr. Inam Elahi Member
Risk Management Committee of the Board
1. Mr. Manzoor Ahmed Chairman

2. Mr. Mohammad Aftab Manzoor Member
3. Mr. Amin A. Feerasta Member
Mr. Javed H. Siddiqi Secretary
Committee of Independent Directors of the Board
1. Mr. Jamil Hassan Hamdani Chairman

IT Committee of the Board
1 Mr. Amin A. Feerasta Chairman

2. Mr. Manzoor Ahmed Member
Mr. Muhammad Salman Ali Secretary
SONERI BANK LIMITED 45

BOARD
SUB-COMMITTEES
Audit Committee Terms of Reference

Constitution: Audit Committee is mandated the responsibilities to determine appropriateness of measures taken by the
Mr. Inam Elahi management to safeguard Bank’s assets, ensure consistency of accounting policies, review financial statements and
Chairman recommend appointment of the external auditors as well as to have close coordination with them so as to comply
Mr. Nooruddin Feerasta with statutory and CCG requirements. The Committee is inter-alia also responsible to ascertain the effectiveness of
Member the Internal Control System including financial and operational controls, ensuring adequate and effective accounting
and reporting structure and monitoring compliance with the best practices of the corporate governance. The other
Mr. Muhammad Rashid Zahir functions of the Committee include consideration of major findings of internal investigations and management’s
Member response thereto as well as ensuring that an effective internal audit functions is in place.
Mr. Jamil Hassan Hamdani
Member
Credit Committee Terms of Reference

Constitution: The primary functions of the Credit Committee of the Board are to ensure adherence to the lending policies, review
Mr. Nooruddin Feerasta the credit policies, systems and controlling strategies for their further strengthening and monitoring the loan portfolios
Chairman regularly on an overall basis including a periodical review of problem loans including classified and stuck-up cases.
Mr. Alauddin Feerasta The Committee is also required to ensure that there are adequate systems, procedures and controls in the Bank
Member for all significant areas related to credit and that the laid down procedures / guidelines are effectively communicated
down the line and put in place a reasonable setup to implement the same. The Committee is also assigned the
Mr. Mohammad Aftab Manzoor responsibility to review the credit related activities of the Executive Credit Committee (ECC) on a quarterly basis for
Member threshold; fund based Rs.200.00 million & above, non-fund based Rs.400.00 million & above and total exposure
Mr. Muhammad Rashid Zahir Rs.400.00 million & above.
Member
Mr. Manzoor Ahmed
Member
Risk Management Committee Terms of Reference

Constitution: Primary responsibilities of the Board Risk Management Committee is to provide oversight and advice to the Board in
Mr. Manzoor Ahmed relation to current and potential future risk exposures of the Bank and future risk strategy, including approval of risk
Chairman appetite and tolerance. The Committee also ensures that an organizational culture that places a high priority required
Mr. Mohammad Aftab Manzoor for effective risk management is established by promoting a risk awareness culture within the Bank. It also validates
Member that resources allocated to risk management are adequate, given the size, nature and volume of the business and
managers and staff that take, monitor and control risk possess sufficient knowledge and expertise. The Committee
Mr. Amin A. Feerasta also monitors the development of appropriate financials models and a system used to calculate each category of
Member risk, and ensure that the Bank has a clear, comprehensive and well documented policies and procedural guidelines
Mr. Inam Elahi relation to risk management available at all times and relevant staff fully understand those policies. The Committee
Member also endures that the Bank’s overall exposure to Credit, Market, Liquidity and operational risk is maintained at
prudent levels and consistent with the available capital under rigorous stress tests.
Human Resource & Remuneration Terms of Reference

Committee
The Board Human Resource and Remuneration Committee is responsible for overseeing the Human Resources
Constitution: function of the Bank by ensuring development and implementation of HR strategies that recruit, retain and inspire
Mr. Manzoor Ahmed professional excellence in employees of the Bank. It recommends human resource management policies to the
Chairman Board that ensures equal opportunity, gender balance, and transparency. It also reviews the significant HR policies
Mr. Inam Elahi of the Bank and ensures that they are well aligned to the market. The Committee also spearheads the Bank-
Member wide programme for implementation of Guidelines on Remuneration Practices, including necessary awareness and
change management initiatives, review, progress against roadmap for implementation of the policy.
Member
Committee of Independent Directors Terms of Reference

Constitution: Committee of Independent Directors is responsible for providing an independent opinion on state of affairs of the
Mr. Jamil Hassan Hamdani Bank and giving recommendations, if any, to the Board.
Chairman
Mr. Inam Elahi
Member
IT Committee Terms of Reference

Constitution: The IT Committee is responsible for reviewing and overseeing the IT Projects and for the development and
Mr. Amin A. Feerasta implementation of IT policies. The Committee shall carry out its responsibilities by:
Chairman
• Review of IT and digital strategies and policies before submission to the Board.
Mr. Manzoor Ahmed
• Ensuring that risk management strategies are designed and implemented to achieve resilience.
Member
• Regular updates from IT Steering Committee to monitor all Board approved technology related projects.
Mr. Inam Elahi
• Ensuring that technology related procurements are aligned with IT Strategy as approved by the Board.
Member
Member

BOARD AND
COMMITTEES’ MEETINGS
Details of the meetings of the Board of Directors and its Committees held during 2018 and the attendance by each director/committee
member are given as under:
Board Human Board

Board Risk Board I.T
Board of Board Audit Board Credit Resource & Independent
Management Directors’ Committee
Directors Committee Committee Remuneration
Committee Committee Committee Meetings
Meetings Meetings Meetings
Sr. Name of
No. Director
Held Held Held Held Held Held Held
Attended**
Attended**
Attended**
Attended**
Attended**
Attended**
Attended**
during during during during during during during
the the the the the the the
year year year year year year year
1. Mr. Alauddin Feerasta 6 6 * * 4 4 * * * * * * * *
2. Mr. Mohammad Aftab Manzoor 6 6 * * 4 4 * * 4 4 * * * *
3. Mr. Nooruddin Feerasta 6 4 4 2 4 2 * * * * * * * *
4. Mr. Amin A. Feerasta 6 5 * * * * * * 4 4 * * - -
5. Mr. Muhammad Rashid Zahir

6 6 4 4 4 4 * * * * * * * *
6. Mr. Manzoor Ahmed

(NIT Nominee) 6 6 * * 4 4 4 4 4 4 * * - -
7. Mr. Inam Elahi 6 6 4 4 * * 4 4 4 4 1 1 - -
8. Mr. Jamil Hassan Hamdani 6 6 4 4 * * 4 4 * * 1 1 - -
Total Number of
meetings held during 6 4 4 4 4 1 -
the year
*Represents not a member of the Committee

**Leave of absence was duly granted to those directors/members, by the Board/Committee, who could not attend some of the meetings.

MANAGEMENT
COMMITTEES
1. Management Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

2. Mr. Amin A. Feerasta
3. Mr. Tariq Yar Khan
4. Mr. Shahid Abdullah
5. Mr. Ali Hassan Shah
6. Mr. Mirza Zafar Baig
7. Mr. Muhammad Qaisar Riaz
8. Mr. Masood Tyabji
9. Mr. Abdul Aleem Qureshi*
10. Ms. Anita Lalani
11. Mr. Mubarik Ali
12. Mr. Muhammad Salman Ali
13. Mr. Hyder Rahi, Acting Secretary
2. Executive Credit Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

6. Mr. Mubarik Ali, Secretary
3. Assets and liability Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

7. Mr. Mubarik Ali
8. Mr. Javed Hussain Siddiqi
9. Mr. Shahid Abdullah, Secretary
4. Investment Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

7. Mr. Muhammad Imran Khan, Secretary
5. I.T. Steering Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

8. Mr. Javed H. Siddiqi
9. Mr. Qurban R. Punjwani, Secretary
* Joined on 23 January 2019

6. Credit Risk Management Committee 1. Mr. Mohammad Aftab Manzoor, Chairman
4. Mr. Mubarik Ali
8. Mr. Javed H. Siddiqi, Member / Secretary
7. Market & Liquidity Risk Management Committee 1. Mr. Mirza Zafar Baig, Chairman
3. Mr. Javed H. Siddiqi
4. Mr. Mian Nadeem Aslam
5. Mr. Salman Arshad
6. Mr. Syed Adeel Ehtesham
7. Mr. Muhammad Imran Khan
8. Mr. Mian Umar Farooq, Secretary
8. Operational Risk Management Committee 1. Mr. Mohammad Aftab Manzoor, Chairman

4. Mr. Mubarik Ali
11. Mr. Javed H. Siddiqi, Member / Secretary
9. Business Continuity Plan Steering Committee 1. Mr. Mohammad Aftab Manzoor, Chairman
7. Ms. Anita Lalani
11. Lt. Col(R) Zahid Raza
12. Mr. Mian Asif Iqbal
13. Mr. Muhammad Khawar Ali Shah
14. Mr. Muhammad Azizullah Abid
15. Mr. Javed H. Siddiqi, Secretary

KEY PERFORMANCE
INDICATORS
Variance Compared to 2017

2018 2017
Amount %
Financial
Investment-Gross Rs. In Million 146,763 117,546 29,217 25%
Advances-Gross “ 194,831 172,772 22,059 13%
Total Assets " 382,498 325,219 57,279 18%
Deposits “ 262,379 227,304 35,075 15%
Shareholders’ Equity / Net Assets “ 17,989 18,505 (516) -3%
Net Interest Income “ 6,953 6,472 481 7%
Non Interest Income “ 3,260 3,456 (196) -6%
Gross Income “ 10,213 9,928 285 3%
Profit before provisions “ 2,833 2,925 (92) -3%
(Reversal) / Provisions and write-offs - net “ (71) 78 (149) -191%
Profit Before Taxation “ 2,904 2,848 56 2%
Profit After Taxation “ 1,784 1,660 124 7%
Trade Volumes “ 367,162 316,990 50,172 16%
Non Financial
No. of customers Absolute 550,464 494,205 56,259 11%

No.of new branches opened “ 5 10 (5) -50%
No. of branches closed “ - 8 (8) -100%
No. of new accounts opened “ 72,079 91,220 (19,141) -21%
No. of VISA cards issued “ 75,630 58,691 16,939 29%
No. of permanent employees “ 2,823 2,847 (24) -1%
No. of virtual banking customers “ 26,839 37,830 (10,991) -29%
No. of mobile banking customers “ 36,056 40,500 (4,444) -11%
Key Financial Ratios
Earnings Per Share Rs. 1.62 1.51

Book Value Per Share “ 16.32 16.78
Share Price “ 12.67 13.40
Market Capitalization Rs. In Million 13,968 14,773
Price Earning Ratio Times 7.83 8.99
Return on Equity % 9.78% 9.02%
Return on Assets % 0.50% 0.55%
Gross Advances to deposit ratio % 74.26% 76.01%
Capital Adequacy Ratio % 14.70% 12.77%

SIX YEARS’
FINANCIAL SUMMARY 2013-2018
2018 2017 2016 2015 2014 2013
FINANCIAL RATIOS
Profit before tax ratio ( PBT/total income) % 28.43% 28.68% 32.12% 33.46% 27.78% 21.45%
Gross Spread (NIM/Interest Income) " 32.19% 34.98% 38.28% 40.84% 36.84% 34.18%
Non interest income to total income " 31.92% 34.81% 29.97% 30.40% 29.13% 34.64%
Income /expense ratio ( excluding provisions) Times 1.38 1.42 1.48 1.76 1.53 1.47
Return on average equity (ROE) (including surplus) % 9.78% 9.02% 10.30% 12.56% 10.43% 8.41%
Return on average assets (ROA) " 0.50% 0.55% 0.70% 0.94% 0.81% 0.62%
Earning Per Share (EPS before tax) Rs. 2.63 2.58 2.79 3.26 2.44 1.53
Earning Per Share ( EPS after tax) Rs. 1.62 1.51 1.70 2.01 1.44 0.94
Gross Advances to deposit ratio % 74.26% 76.01% 63.72% 65.25% 70.94% 74.53%
Net Advances to deposit ratio " 71.07% 72.28% 59.70% 60.59% 66.25% 69.45%
Break up value per share (net assets based) " 16.32 16.78 16.59 18.15 17.00 13.25
Earning Assets to total assets % 88.12% 88.62% 88.33% 87.62% 85.16% 84.72%
Earning assets to interest bearing liabilities Times 1.18 1.25 1.25 1.22 1.24 1.26
Weighted average cost of deposits % 6.12% 3.78% 3.47% 4.42% 6.18% 5.85%
CASA to total deposits " 60.75% 69.64% 67.77% 68.60% 67.58% 70.23%
NPLs to total advances ratio " 5.83% 5.93% 7.79% 9.60% 8.84% 9.96%
Coverage ratio (Specific Provisions/NPLs) " 73.21% 82.39% 80.58% 73.97% 74.44% 68.20%
Assets to Equity Times 21.26 17.57 15.41 14.05 12.70 13.09
Total assets per share Times 346.94 294.98 255.61 255.07 215.98 173.40
Deposits to shareholders’ equity Times 14.59 12.28 11.48 10.16 9.56 10.57
Risk Adequacy
Tier I Capital Rs.in Million 18,442 15,963 15,329 15,032 13,916 12,229
Risk Weighted Assets (RWA) " 159,389 161,971 141,609 128,905 124,596 106,768
Tier I to RWA % 11.57% 9.86% 10.82% 11.66% 11.17% 11.45%
Capital Adequacy Ratio " 14.70% 12.77% 14.12% 15.39% 12.50% 11.93%
Net Return on Average RWA " 1.11% 1.09% 1.39% 1.75% 1.37% 1.02%
Stock Dividend -%
Cash dividend per share % 10%* 7.50% 12.50% 12.50% 10% -

Bonus Shares Issued % - - - - - 10.00%
Share Information
Market Value per share-31 Dec Rs. 12.67 13.40 17.65 15.13 12.33 10.93
- High during the year " 14.40 19.20 17.90 15.35 16.73 11.38
- Low during the year " 11.76 12.25 12.76 10.06 9.50 5.90
Market Capitalization Rs.in Million 13,968 14,773 19,458 16,680 13,593 12,050
Price to book value (net assets based) 0.78 0.80 1.06 0.83 0.73 0.82
Price to Earning Ratio Times 7.83 8.90 10.36 7.54 8.56 11.63
Industry Share
Deposits % 1.86% 1.84% 1.78% 1.99% 1.96% 1.87%

Advances " 2.36% 2.65% 2.40% 2.52 2.59% 2.57%
Non Financial Information
No of branches Absolute 295 290 288 266 246 239

No of permanent employees " 2,823 2,847 2,715 2,715 2,639 2,835
ATMs " 316 313 306 274 263 265
* Subject to shareholders’ approval in the forthcoming AGM

QUARTERLY PERFORMANCE
2018 & 2017
2018 2017
4th 3rd 2nd 1st 4th 3rd 2nd 1st
PROFIT & LOSS ACCOUNT Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter
Mark-up / Return / Interest Earned 6,485 5,642 4,815 4,658 4,851 4,954 4,443 4,257
Mark-up / Return / Interest Expensed (4,397) (4,022) (3,252) (2,976) (3,043) (3,435) (2,874) (2,680)
Net Mark-up Interest Income 2,088 1,620 1,563 1,682 1,808 1,519 1,569 1,577
Non-mark-up / interest income 790 765 775 930 684 867 692 1,213
Non-mark-up / interest expenses (1,900) (1,926) (1,748) (1,806) (1,795) (1,762) (1,749) (1,697)
Provisions and write offs (242) 84 19 210 50 26 22 (176)
Profit / (loss) before taxation 736 543 609 1,016 747 650 534 917
Taxation (246) (225) (293) (356) (318) (231) (318) (321)
Profit / (loss) after taxation 490 318 316 660 429 419 216 596
Statement of Financial Position

Assets
Cash and balances with treasury 26,020 22,307 24,302 19,492 19,431 18,968 20,977 15,453
Balances with other banks 1,180 1,716 1,572 884 1,151 875 2,096 1,002
Lending to financial institutions 3,921 5,357 7,550 8,047 6,503 11,651 15,671 12,821
Investment-net 146,646 107,138 157,487 94,971 117,429 132,960 128,581 121,071
Advances-net 186,475 173,666 168,219 161,603 164,293 155,851 149,749 132,596
Fixed assets 6,239 6,334 6,272 6,482 6,464 4,969 4,972 4,960
Intangible assets 454 377 342 96 117 144 171 199
Other assets 11,563 11,215 9,056 8,974 9,831 8,326 8,942 8,789
Total Assets 382,498 328,110 374,800 300,549 325,219 333,744 331,159 296,891
Liabilities
Bills payable 3,994 3,926 4,465 4,679 4,895 4,305 4,361 3,858
Borrowings 81,963 48,815 98,715 51,059 64,584 87,578 65,447 47,703
Customer deposits 262,379 241,229 243,417 215,188 227,304 214,846 234,426 216,285
Sub-ordinated loans 6,996 2,996 2,997 2,997 2,998 2,998 2,998 2,998
Deferred tax liabilities -net 120 438 628 845 936 701 839 940
Other liabilities 9,057 12,533 6,375 7,550 5,998 6,195 5,874 7,893
Total Liabilities 364,509 309,937 356,597 282,318 306,715 316,623 313,945 279,677
Equity
Share Capital 11,025 11,025 11,025 11,025 11,025 11,025 11,025 11,025
Reserves 2,109 2,011 1,948 1,884 1,753 1,670 1,586 1,543
Un-appropriated profit 4,312 3,897 3,625 3,418 3,632 3,180 2,824 2,621
Surplus on revaluation of assets 543 1,240 1,605 1,904 2,095 1,246 1,779 2,025
Total Equity 17,989 18,173 18,203 18,231 18,505 17,121 17,214 17,214

SIX YEARS’ VERTICAL ANALYSIS
STATEMENT OF FINANCIAL POSITION /
PROFIT & LOSS ACCOUNT
2018 2017 2016 2015 2014 2013

Statement of Financial Position Rs.in Mln % Rs.in Mln % Rs.in Mln % Rs.in Mln % Rs.in Mln % Rs.in Mln %
ASSETS
Cash and balances with treasury banks 26,020 7% 19,431 6% 18,279 6% 16,718 7% 15,776 7% 12,673 7%
Balances with other banks 1,180 0% 1,151 0% 823 0% 1,635 1% 575 0% 707 0%
Lending to financial institutions 3,921 1% 6,503 2% 5,522 2% 3,094 1% 604 0% 2,988 2%
Investment-net 146,646 38% 117,429 36% 117,884 42% 108,846 43% 75,716 35% 46,703 27%
Advances-net 186,475 49% 164,293 51% 125,306 44% 112,002 44% 107,968 50% 97,534 56%
Fixed assets 6,239 2% 6,464 2% 4,936 2% 4,884 2% 4,953 2% 3,657 2%
Intangible assets 454 0% 117 0% 202 0% 73 0% 61 0% 77 0%
Deferred tax assets-net - 0% - 0% - 0% - 0% - 0% 103 0%
Other assets 11,563 3% 9,831 3% 8,853 3% 8,403 3% 10,820 5% 9,430 5%
Total Assets 382,498 100% 325,219 100% 281,805 100% 255,655 100% 216,473 100% 173,872 100%
Liabilities and Equity

Bills payable 3,994 1% 4,895 2% 4,164 1% 3,077 1% 3,063 1% 2,718 2%
Borrowings 81,963 21% 64,584 20% 38,905 14% 39,876 16% 25,825 12% 10,485 6%
Customer deposits 262,379 69% 227,304 70% 209,894 74% 184,847 72% 162,964 75% 140,439 81%
Subordinated debt 6,996 2% 2,998 1% 2,999 1% 3,000 1% - 0% - 0%
Deferred tax liabilities-net 120 0% 936 0% 1,138 0% 1,417 1% 1,420 1% - 0%
Other liabilities 9,057 2% 5,997 2% 6,416 2% 5,246 2% 6,162 3% 6,947 4%
Total Liabilities 364,509 95% 306,714 94% 263,516 94% 237,463 93% 199,434 92% 160,589 92%
Net Assets 17,989 5% 18,505 6% 18,289 6% 18,192 7% 17,039 8% 13,283 8%
Represented by
Share Capital - net of discount 11,025 3% 11,025 3% 11,025 4% 10,023 4% 10,023 5% 10,023 6%
Reserves 2,109 1% 1,753 1% 1,424 1% 1,049 0% 934 0% 618 0%
Surplus on revaluation of assets 543 0% 2,095 1% 2,393 1% 2,856 1% 2,932 1% 832 0%
Un-appropriated profit 4,312 1% 3,632 1% 3,447 1% 4,264 2% 3,150 1% 1,810 1%
17,989 5% 18,505 6% 18,289 6% 18,192 7% 17,039 8% 13,283 8%
Profit & loss account
Mark-up / Return / Non Interest Income
Mark-up / Return / Interest Earned 21,600 87% 18,505 84% 17,524 86% 18,320 85% 16,906 87% 13,639 85%
Fee, Commission and Exchange income 2,694 11% 2,016 9% 1,711 8% 1,926 9% 1,990 10% 1,826 11%
Capital Gain and Dividend Income 519 2% 1,399 6% 1,131 6% 1,284 6% 535 3% 623 4%
Other income 47 0% 41 0% 29 0% 57 0% 35 0% 22 0%
Total Income 24,860 100% 21,961 100% 20,395 100% 21,587 100% 19,466 100% 16,110 100%
Mark-up / Return / Non Interest Expense

Mark-up / Return / Interest Expensed 14,647 59% 12,032 55% 10,815 53% 10,839 50% 10,677 55% 8,977 56%
Non mark-up / interest expenses 7,380 30% 7,003 32% 6,454 32% 6,098 28% 5,744 30% 4,839 30%
(Reversal) / Provisions and write-offs - net (71) -0% 78 0% 49 0% 1,054 5% 603 3% 764 5%
Taxation 1,120 5% 1,188 5% 1,198 6% 1,383 6% 860 4% 493 3%
Total Expenses 23,076 93% 20,301 92% 18,516 91% 19,374 90% 17,884 92% 15,073 94%
Profit after taxation 1,784 7% 1,660 8% 1,879 9% 2,213 10% 1,582 8% 1,037 6%

SIX YEARS’ HORIZONTAL ANALYSIS
STATEMENT OF FINANCIAL POSITION /
PROFIT & LOSS ACCOUNT
2018 vs 2017 vs 2016 vs 2015 vs 2014 vs 2013 vs

2018 2017 2016 2015 2014 2013
2017 2016 2015 2014 2013 2012
Statement of Financial Position Rs.in Mn % Rs.in Mn % Rs.in Mn % Rs.in Mn % Rs.in Mn % Rs.in Mn %
ASSETS
Cash and balances with treasury banks 26,020 34% 19,431 6% 18,279 9% 16,718 6% 15,776 24% 12,673 10%
Balances with other banks 1,180 3% 1,151 40% 823 -50% 1,635 184% 575 -19% 707 -43%
Lending to financial institutions 3,921 -40% 6,503 18% 5,522 78% 3,094 412% 604 -80% 2,988 166%
Investment-net 146,646 25% 117,429 -0% 117,884 8% 108,846 44% 75,716 62% 46,703 -22%
Advances-net 186,475 14% 164,293 31% 125,306 12% 112,002 4% 107,968 11% 97,534 26%
Fixed assets 6,239 -3% 6,464 31% 4,936 -0% 4,884 -1% 4,953 35% 3,657 -4%
Intangible assets 454 288% 117 -42% 202 177% 73 20% 61 -21% 77 0%
Deferred tax assets-net - 0% - 0% - 0% - 0% - 103 -66%
Other assets 11,563 18% 9,831 11% 8,853 5% 8,403 -22% 10,820 15% 9,430 138%
Total Assets 382,498 18% 325,219 15% 281,805 10% 255,655 18% 216,473 25% 173,872 10%
Liabilities and Equity

Bills payable 3,994 -18% 4,895 18% 4,164 35% 3,077 0% 3,063 13% 2,718 2%
Borrowings 81,963 27% 64,584 66% 38,905 -2% 39,876 54% 25,825 146% 10,485 -49%
Customer deposits 262,379 15% 227,304 8% 209,894 14% 184,847 13% 162,964 16% 140,439 17%
Subordinated debt 6,996 133% 2,998 -0% 2,999 -0% 3,000 0% - 0% - 0%
Deferred tax liabilities-net 120 -87% 936 -18% 1,138 -20% 1,417 -0% 1,420 100% - 0%
Other liabilities 9,057 51% 5,997 -7% 6,416 22% 5,246 -15% 6,162 -11% 6,947 179%
Total Liabilities 364,509 19% 306,714 16% 263,516 11% 237,463 19% 199,434 24% 160,589 10%
Share Capital 11,025 0% 11,025 0% 11,025 10% 10,023 0% 10,023 0% 10,023 11%
Reserves 2,109 20% 1,753 23% 1,424 36% 1,049 12% 934 51% 618 51%
Surplus on revaluation of assets 543 -74% 2,095 -12% 2,393 -16% 2,856 -3% 2,932 252% 832 -13%
Un-appropriated profit 4,312 19% 3,632 5% 3,447 -19% 4,264 35% 3,150 74% 1,810 -7%
Total Equity 17,989 -3% 18,505 1% 18,289 1% 18,192 7% 17,039 28% 13,283 8%
Profit & loss account
Mark-up / Return / Non Interest Income
Mark-up / Return / Interest Earned 21,600 17% 18,505 6% 17,524 -4% 18,320 8% 16,906 24% 13,639 -1%
Fee, Commission and Exchange income 2,694 34% 2,016 18% 1,711 -11% 1,926 -3% 1,990 9% 1,826 53%
Capital Gain and Dividend Income 519 -63% 1,399 24% 1,131 -12% 1,284 140% 535 -14% 623 18%
Other income 47 15% 41 41% 29 -49% 57 63% 35 59% 22 83%
Total Income 24,860 13% 21,961 8% 20,395 -6% 21,587 11% 19,466 21% 16,110 4%
Mark-up / Return / Non Interest Expense

Mark-up / Return / Interest Expensed 14,647 22% 12,032 11% 10,815 -0% 10,839 2% 10,677 19% 8,977 0%
Non mark-up / interest expenses 7,380 5% 7,003 9% 6,454 6% 6,098 6% 5,744 19% 4,839 11%
(Reversal) / Provisions and write-offs - net (71) -191% 78 59% 49 -95% 1,054 75% 603 -21% 764 47%
Taxation 1,120 -6% 1,188 -1% 1,198 -13% 1,383 61% 860 74% 493 -20%
Total Expenses 23,076 14% 20,301 10% 18,516 -4% 19,374 8% 17,884 19% 15,073 4%
Profit after taxation 1,784 7% 1,660 -12% 1,879 -15% 2,213 40% 1,582 53% 1,037 -6%

CHAIRMAN’S REVIEW
The year 2018 proved to be yet another progressive one for Soneri
Bank Limited. Despite challenges on the economic front, I am proud to
share that the Bank has continued to deliver sound financial results, and
grow as a dynamic and forward looking organization.
Having completed a 27-year journey of delivering on our promise to

the stakeholders, we continue to navigate forward with renewed zeal
and enthusiasm. Keeping abreast with the technological advancements
which are rapidly changing the business landscape and industry
dynamics, we successfully expanded our technological infrastructure
this year, as our Core Banking System (T24) was successfully
implemented across the Bank. With this robust platform now in place,
I am confident that the Bank is positioned to reap the benefits, through
enhanced efficiencies and improved customer experience.
Leveraging on our banking experience and legacy, we remain committed

to serve our stakeholders; by providing quality service through innovative
and efficient financial solutions aimed at facilitating growth.
Economy
FY 2018 was a challenging year for the economy. The twin deficits
remained pronounced over the course of the year, and the newly
formed government was compelled to take tough decisions to tackle
challenges on the economic fronts. The country’s GDP growth in
FY 2018 stood at 5.8%, which is highest level in the last 11 years.
However, this is expected to slow down in 2019 as a result of tightening
fiscal and monetary policies with the shifting of macroeconomic policy
towards stabilization.
Over the course of the year, the State Bank of Pakistan gradually
increased the policy rate by a cumulative 425 basis points to 10
percent at year end, whereas a further increase of 25 basis points was
witnessed at the start of CY2019. The rate increases were made amidst
rising inflationary expectations following devaluation of Pak Rupee.
Improvement in law and order situation of the country and consistency
in the democratic process remain crucial for attracting new foreign
investments.
Nonetheless, the new government seems confident that the prevalent

economic crisis will gradually be overcome. What must be realized is
that structural reforms, including a viable fiscal policy, and tax reforms
are pivotal for sustainability and long term growth.
The Bank’s Performance
Our Bank’s performance indicates that we are moving towards the right
direction, where our priorities are customer oriented services, regulatory
compliance, technological advancements, meeting corporate social
responsibilities and capitalizing on opportunities which are beneficial for
our stakeholders.

Reviewing the performance of 2018, our Profit after tax (PAT) amounted We are determined to facilitate ongoing business and investment
to Rs. 1.784 billion, up by 7.4 percent. Normalizing the one off capital activities in the country and be part of an initiative that will further boost
gains advantage we had last year, our Bank’s net revenue growth for the economy of our country.
the year stands impressively at 13.5 percent. We successfully managed
to achieve our key performance indicators, and given sound asset Conclusion:
management strategy in a rising interest rate regime, I am optimistic
that in the coming year, we would be able to improve our profitability I would like to thank the Board of Directors for their continued guidance
further. and stewardship and the Management team at the Bank for their
notable contribution to our accomplishments this past year.
In 2018, our deposit base increased by 15.4 percent to Rs. 262.38
billion. With the year end gross advances at Rs. 194.83 billion, our Finally, I extend my sincere gratitude to our loyal customers for their
advances to deposit ratio (ADR) stands at 74.3 percent. trust, our valued shareholders for their support, the regulators for their
mentorship and guidance, and our employees for their continued hard
I am happy to share that the Bank has successfully managed to keep work, honesty and sincerity, which makes us what we are today.
the delinquency (NPL) ratio at 5.8 percent while our NPL coverage
stands at 73.6 percent. The Bank’s credit rating has been maintained at Roshan Har Qadam!
“AA-”, which indicates the sustained business profile and sound lending
capacity of the Bank.
It is also heartening to note that the Bank’s first ever listed Additional
Tier 1 subordinated debt, issued towards the end of the year was
received positively by the market, and the Bank successfully closed out Alauddin Feerasta
the issue, amounting to Rs. 4 billion. The issuance of this instrument Chairman
has bolstered our Capital Adequacy Ratio, and in turn, our capacity to Lahore: 22 February 2019
lend and increase our earning assets.
Board’s Performance and effectiveness
I deeply value and recognize the contribution of the Bank’s Board of

Directors towards the Bank’s progress. Over the course of the year,
the Board has exhibited high standards of business, professional and
ethical conduct in their supervision of the affairs of the Bank.
The Board follows a proactive approach towards achieving sustainable

earnings and maximization of shareholders’ value by ensuring an
appropriate tradeoff between risks and returns. Each sub-committee
has a defined scope and a prescribed mandate for efficient oversight
and monitoring.
Looking ahead:
Moving forward, we will strive to provide solutions to our customers in

an efficient manner, whilst promoting a sound compliance and controls
culture within the organization.
The Bank remains committed to make the best use of our new core
banking system to provide a more customized banking experience to
our customers, through new innovative products and the introduction
of state of the art banking processes.

DIRECTORS’ REPORT
TO SHAREHOLDERS
On behalf of the Board of Directors, we are pleased to present the Directors’ Report of Soneri Bank Limited (the Bank) along with the
audited financial statements and Auditors’ report thereon for the year ended 31 December 2018.
Economic Review:
Despite significant economic challenges faced in the year 2018, Pakistan’s economic outlook remains stable. In 2018, the country
witnessed another successful democratic transition, but macroeconomic imbalances continued to hamper overall economic stability.
A healthy annual GDP growth of 5.8 percent was recorded in FY18, but the economic activity is expected to slowdown in FY19, with
the macroeconomic policy focus shifting towards stabilization.
The balance of payments remained under stress due to a relatively high current account deficit. The deficit for FY18 had clocked in
at US$18.9bn (or 6.0 percent of GDP) - an all-time high. The country’s foreign exchange reserves had at one point in time depleted
to dangerously low levels as the deficit had to be financed through the country’s own resources due to inadequate external inflows.
However, the new government has since been successful in timely managing critical bilateral inflows and assistance from friendly
countries. In FY19, it is estimated that the deficit would end up lower due to expectation of curtailment in non-essential imports, and
measures undertaken to stimulate exports.
Exports are also expected to increase by around 10 percent in FY19 on the back of devaluation and government's announced
incentive for the export sector to provide energy tariff at lower rates compared to other sectors. Remittances are also expected to
show healthy growth of 10-15 percent due to channeling of flows through formal banking sector.
Managing the fiscal deficit, however would be a bigger challenge. The government is targeting reduction in development spending but
current expenditure appears to be on the rise due to higher debt servicing, given expectations of higher interest rates and further
rupee devaluation.
The State Bank of Pakistan’s policy rate hikes by a cumulative 425 basis points to 10 percent at December 2018 end were driven by
rising inflation expectations mainly on account of a 24 percent devaluation of the Pak Rupee since December 2017. The rate
hikes also aim to curb demand in FY19. Further rate hikes can be expected based on the inflation expectations in the coming days.
Improvement in law and order situation of the country and consistency in the democratic process shall be crucial for attracting new
foreign investments.
At Soneri Bank, we remain optimistic about the economic trend. Despite pressures, credit offtake to the private sector remains on the
cards. We are geared to play a key role towards the progress of our great nation by addressing the opportunities of growth available
within the economy and providing solutions for our customers in the most efficient manner.
The Bank’s Performance and Operating Results:
The Banks’ performance during 2018 has remained sound with positive growth in all segments including advances, deposits and
investments. The gradual and continual increase in interest rates has reduced some pressure on the margins of the banking sector
although other external headwinds still exist.
The highlights of the financial results for 2018 are as follows:

2018 2017
FINANCIAL POSITION Rupees in million
Advances – net 186,475 164,293

Investments – net 146,646 117,429
Total Assets 382,498 325,219
Total Deposits 262,379 227,304
Shareholders’ Equity 17,989 18,505

2018 2017
FINANCIAL PERFORMANCE Rupees in million
Net Interest Income and Non Markup Income 10,213 9,928

Non Markup Expenses 7,380 7,003
Profit before tax 2,905 2,848
Profit after tax 1,784 1,660
Earnings per share – Rupees 1.6179 1.5056
Overview of the Business:
The Bank posted profit before tax (PBT) of Rs. 2.905 billion and profit after tax (PAT) of Rs. 1.784 billion for the year 2018, as
compared to Rs. 2.848 billion and Rs. 1.660 billion respectively in 2017. These results have consequently improved the Bank’s EPS
from Rs. 1.5056 per share in 2017 to Rs. 1.6179 per share in 2018.
The gradual increase in discount rate over the course of the year contributed in improving bottom line profitability, mainly because of
favorable repricing of the loans and advances book. In 2017, due to the low interest rate regime, the Bank had experienced margin
compression despite delivering a notable increase in volumes. Total markup income increased by 16.73 percent from Rs. 18.505
billion in 2017 to Rs. 21.600 billion in 2018.
The Bank’s gross advances portfolio grew by 12.77 percent i.e. Rs. 22.059 billion in 2018 as compared to the previous year. The
non-performing loans increased by 10.86 percent, from Rs. 10.245 billion in 2017 to Rs. 11.375 billion in 2018. Average volumes for
advances also showed a similar trend with yields improving by 95bps. On a year on year basis, income from advances increased by
32.40 percent or Rs. 3.118 billion with overall yield of 7.81 percent. The yields are expected to pick up further in Q1 2019 due to
repricing impact at the start of 2019.
At the year-end 2018, Investments showed a substantial growth of 26.85 percent or Rs. 31.509 billion, with gross investments
reported at Rs. 148.835 billion. The composition of investments remained largely skewed towards government securities, mainly
market treasury bills. In terms of averages, volumes remained lower than that of last year. Based on the ALCO’s views on interest
rates, the Bank’s strategy post June 2018 was to run a shorter tenor position, by mainly investing in treasury bills, so as to minimize
interest rate risk and to retain the flexibility to re-invest in the shorter term. Investments income was lower than that earned last year,
by Rs. 111.679 million, mainly on account of lower average volumes.
The increase in revenue was partially offset by increased costs of deposits and borrowing. Total markup/interest expense in 2018 was
recorded at Rs. 14.647 billion as compared to Rs. 12.032 billion in 2017, representing an increase of 21.73 percent. Nonetheless,
net interest income increased by 7.43 percent from Rs. 6.472 billion in 2017 to Rs. 6.953 billion in 2018.
Deposits registered an increase of 15.43 percent from Rs. 227.304 billion in 2017 to Rs. 262.379 billion in 2018. In terms of average
volumes, a growth of Rs. 11.8 billion was witnessed. The Bank’s portfolio mix in 2018 stood at CASA percentage of 60.75 percent.
The Bank’s cost of deposits on a full year basis stood at 4.44 percent, increasing by 60 bps as compared to 2017, while the discount
rate increased by 425 bps over the year. Average current account volumes increased by 8.45 percent year on year, improving from
Rs. 56.088 billion in 2017 to Rs. 60.830 billion in 2018.

As at 31 December 2018, gross Advances to Deposits ratio (ADR) of the Bank figured at 74.26 percent as against 76.01 percent in 2017.
During 2018, the Bank’s Fee and Commission income increased significantly by Rs. 313.066 million indicating a positive growth of
22.48 percent as compared to 2017. The Bank benefited from currency volatility as foreign exchange income of Rs. 988.637 million
was reported this year as compared to Rs. 623.807 million in 2017, indicating a rise of 58.48 percent. Contributions from ADC related
income, income from dividends and treasury related activities also positively impacted the bottom line. Dividend income showed
positive growth of Rs. 18.611 million as compared to the previous year. The KSE-100 capital markets index followed a declining trend
in 2018 resulting in lower realized gains of Rs. 63.652 million in 2018 as against Rs. 91.559 million in 2017. Money Market gains
declined by Rs. 1,066.685 million to Rs. 195.330 million in 2018, mainly due to non-recurring gains from the sale of PIBs in the year 2017.
Non markup expenses went up by 5.38 percent from 7.003 billion in 2017 to 7.380 billion in 2018. This increase resulted mainly from
expansion in branch network (5 branches opened in 2018) along with moderate increase in staff costs. Expenses were favorably
impacted by an accounting estimate change in booking of depreciation on buildings on leasehold and freehold land and cell phones,
leading to a positive impact of Rs. 263.612 million, and also by releasing the excess liability held against WWF, resulting in a saving
of Rs. 120 million, as fully detailed in notes 3.5 and 29.1 respectively to the financial statements. These cost savings were partially
offset in the year by an increase in depreciation caused by revaluation of assets at the end of the last year, which resulted in
depreciation cost rising by Rs. 167.068 million, and a fresh levy of insurance premium of Rs. 80.006 million on deposits, under the
State Bank of Pakistan’s deposit protection scheme introduced during the year.
Total net provision reversal against NPLs were recorded at Rs. 85.749 million in 2018, as against a net charge of Rs. 63.247 million
recorded in 2017. Instead of a further footprint expansion, the Bank followed a consolidation approach in 2018, with only 5 new
branches opened during the year. The Bank’s branch transformation program was successfully conducted throughout the year, with
roll out targeted for Q1 2019. The plan intends to build on the core customer base of the Bank through effective portfolio
management, and modification of the sales and distribution model / structure.
At 31 December 2018, there are no such loans, TFCs, sukuks or any other debt instruments in which the Bank is in default or likely
to default.
Capital Structure of the Bank
During the year, the Bank successfully issued additional Tier-1 Capital in the form of listed, perpetual, unsecured, subordinated,
non-cumulative and contingent convertible debt instruments with an issue size of Rs. 4 billion. The issue aims at supplementing the
Bank’s tier 1 CAR and contributes towards enhancing the lending capacity of the bank. PACRA has assigned the instrument with long
term rating of A with a stable outlook.
In terms of overall Capital Adequacy, the Bank remains well positioned, adequately meeting the SBP’s requirement of minimum CAR
of 11.90 percent at December 2018, with a reported CAR of 14.70 percent.
Human Resource
Soneri Bank considers its employees as an asset and has always worked towards their welfare and betterment. We welcome fresh
perspectives and innovative ideas. Training and workshops are offered for capacity building and enhancing efficiencies. We offer
market competitive perks and benefits to our employees.

Composition of the Bank’s Board of Directors:
The election of the Board of Directors was held at the 25th Annual General Meeting of the Bank’s shareholders’ meeting convened
on 28 March 2017. Out of the elected members, Syed Ali Zafar resigned effective 17 May 2017 and in his place, Mr. Jamil Hassan
Hamdani was appointed by the Board. There has been no further change in the composition of the Board of Directors post 17 May 2017.
The present composition of the Board of Directors is as under:
Total number of Directors: 08 including the President and Chief Executive Officer
Male 08
Female Nil
Category Names
Mr. Inam Elahi

Independent Directors
Mr. Alauddin Feerasta

Mr. Nooruddin Feerasta
Non-Executive Directors
Mr. Muhammad Rashid Zahir
Mr. Manzoor Ahmed (NIT Nominee)
Mr. Mohammad Aftab Manzoor*

Executive Directors (President & Chief Executive Officer)
Mr. Amin A. Feerasta
(Chief Operating Officer)
* Deemed director as per clause 3 of Section 188 of Companies Act, 2017.
The Board has remained fully compliant with the provision with regard to their training program. Four Directors have received
"Certificate of Director Education" from the Pakistan Institute of Corporate Governance (“PICG”). Our directors have also attended
various courses/workshops in recent years. In the year 2015, one director attended a week – long course on “The Accelerated
Certificate in Company Direction” a program of the Institute of Directors, UK arranged in Pakistan by the PICG. Further, during the
year 2016, three other directors have also participated in a three full days’ workshop on “Corporate Governance & Director Duties
Excellence” held in Malaysia.
Board’s Performance Evaluation
During the year, The Pakistan Institute of Corporate Governance (“PICG”), a premier body in the field of promoting good corporate
governance practices in Pakistan, was engaged to independently conduct the Board’s Performance Evaluation and submit their
analysis report for review by the Board, in accordance with the requirements of BPRD Circular No.11 dated 22 August 2016 and
Listed Companies (Code of Corporate Governance) Regulations, 2017.
The PICG conducted an independent evaluation of the Board, and finalized their assessment report during the year. This report was
reviewed by the Board in its 167th Board Meeting convened on 22 February 2019 and the challenges identified by them have been
duly noted to be addressed.

Board and Committees’ Meetings:
Details of the meetings of the Board of Directors and its Committees held during 2018 and the attendance by each director/committee
member are given as under:
Board Human Board Risk Board

Board of Board Audit Board Credit Resource & Independent Board I.T
Management Directors’ Committee
Directors Committee Committee Remuneration
Committee Committee Committee Meetings
Sr. Name of
No. Director
Held Held Held Held Held Held Held
Attended**
Attended**
Attended**
Attended**
Attended**
Attended**
Attended**
during during during during during during during
the the the the the the the
year year year year year year year
1. Mr. Alauddin Feerasta 6 6 * * 4 4 * * * * * * * *
2. Mr. Mohammad Aftab Manzoor 6 6 * * 4 4 * * 4 4 * * * *
3. Mr. Nooruddin Feerasta 6 4 4 2 4 2 * * * * * * * *
4. Mr. Amin A. Feerasta 6 5 * * * * * * 4 4 * * - -
5. Mr. Muhammad Rashid Zahir

6 6 4 4 4 4 * * * * * * * *
6. Mr. Manzoor Ahmed

(NIT Nominee) 6 6 * * 4 4 4 4 4 4 * * - -
7. Mr. Inam Elahi 6 6 4 4 * * 4 4 4 4 1 1 - -
8. Mr. Jamil Hassan Hamdani 6 6 4 4 * * 4 4 * * 1 1 - -
Total Number of
meetings held during 6 4 4 4 4 1 -
the year
*Represents not a member of the Committee

**Leave of absence was duly granted to those directors/members, by the Board/Committee, who could not attend some of the
meetings.
Note: The composition of the Board/Committees and their TORs is also shared on page 45 to the Annual Report)
Director’s Remuneration
The Remuneration Policy for Non-Executive Directors including Independent Directors of the Bank for attending Board / Committee
meetings was approved by the Board in its 159th meeting held on 09 December 2017. The scale of meeting fee for Non-Executive
Directors (other than the Chairman) was approved by the Shareholders at Rs. 75,000/- (net of tax) for attending the Board /
Committees’ Meetings. For the Chairman, this was fixed at Rs. 500,000/- (net of tax) per meeting of the Board and its Committees.
The Board also approved that expenses related to boarding and lodging, air ticket and pick and drop of the Non-Executive Directors
shall be borne by the Bank. Hotel allowance of Rs.10,000/- per night stay was approved to be paid to non-executive directors who

don’t avail the Bank’s provided accommodation. Further, as per the Policy no such remuneration is paid to the Executive Directors.
However, expenses for boarding and lodging, air ticket and usual TA/DA are paid in accordance with the Bank’s approved Travel Policy.
Meeting fee paid to the non-executive directors has been disclosed in note 41 to the financial statements under the “fees” category.
This Policy is aimed at adequately remunerating the Non-Executive Directors including Independent Directors of the Bank for devoting
their valuable time in providing guidance and oversight to the Bank as well as in framing Policies for smooth functioning of the Bank.
It also reflects the Bank’s objectives of good Corporate Governance and sustained, long-term value creation for our shareholders and
also aims to promote sound and effective risk management.
Statement of Investments of Provident and Gratuity Funds
The Bank operates approved funded provident and gratuity fund schemes covering all its permanent employees. The investment
balances (excluding deposit with banks) based on the latest audited Financial Statements of the funds are:
(Rupees in ’000)
Investments of Provident Fund 525,730
Investments of Gratuity Fund 144,304
Statement on Risk Management Framework
The Risk Management philosophy and policy of the Bank is aligned with regulatory standards, industry best practices and
proportional to the scale and complexity of Bank's activities. It includes optimizing returns by striking a balance between the risks and
the returns on assets, striving towards increasing market share to enhance shareholders' value, augmenting business through quality
assets and ensuring conservation of capital.
Our risk management strategy is targeted at ensuring proper risk governance so as to facilitate ongoing effective discovery,
management and mitigation of risks arising from external factors and our business activities and to set aside adequate capital
efficiently to address these risks. Risks are managed within levels established by the senior management committees and approved
by the Board and its Committees. We have put in place a framework of policies, methodologies, tools and processes that will help us
identify, measure, monitor and manage material risks faced by the Bank. This enables us to concentrate our efforts on the
fundamentals of banking and to create long-term value for all our stakeholders.
The Bank’s risk governance framework, policies and appetite provide the overarching principles and guidance for the Bank’s risk
management activities. They help to shape our key decisions for capital management, strategic planning and budgeting, and
performance management to ensure that the risk dimension is appropriately and sufficiently considered. In particular, the Bank Risk
Appetite is part of the Bank’s Internal Capital Adequacy Assessment Process (ICAAP), which incorporates stress-testing to ensure
that the Bank’s capital, risk and return are within acceptable levels under stress scenarios. We also take into consideration the Bank’s
risk appetite in the development of risk-related key performance indicators (KPIs) for performance measurement. This serves to
embed a risk management mindset and culture throughout the organization.
In the interests of all our stakeholders, we only take risks within our risk appetite and risk tolerances, and where consistent with our
Board approved risk strategy. Risk Management policies, models, tools and systems are regularly reviewed to improve the framework
and reflect market changes. We make sure risk-taking is transparent, controlled and reported in line with the Risk Management
Framework, within risk appetite and risk tolerance boundaries and only where there is appropriate infrastructure and resources.
In executing the Bank’s strategy, the Bank operates within internally approved risk appetite and external requirements relating to
capital, liquidity and leverage risk. The Bank is committed to ensuring that effective risk management remains central to all its activities
and is a core management competency. The aim is to ensure that risk management is embedded in the Bank's processes and
culture, thus contributing to the achievement of its core objectives.

Statement on Internal Controls
The Management of the Bank is responsible for maintaining a sound system of internal controls to ensure efficiency and effectiveness
of operations, compliance with legal requirements and reliability of financial reporting. Adequate systems, processes and controls
have been put in place to identify and mitigate the risk of failure to achieve the overall objectives of the Bank. These controls
encompass the policies and procedures that are approved by the Board of Directors – and their compliance and effectiveness – which
is verified by an independent Internal Audit Division reporting directly to the Board Audit Committee.
Existing policies and procedures are reviewed on a regular basis and improved from time to time, when required. The Board has
constituted its sub committees for oversight of the overall Risk Management framework, Finance and Strategy, which meet at regular
intervals to ensure adequacy of governance.
The Board of Directors acknowledge its responsibility for ensuring that an adequate and effective internal control system covering all
aspects of our banking operations is in existence and vigorously followed by senior management.
Based on our reviews of internal control system through various reports from Internal Audit Division, Compliance Control &
Investigation Group and Statutory Auditors as well as various policies, procedures and other matters presented for review and
approval, from time to time, we believe that the bank’s existing system of Internal Control is considered reasonable in design and is
being effectively implemented and monitored.
The Board endorses the management’s evaluation on effectiveness of the overall internal controls, including ICFR, as detailed in the
Statement of Internal Controls, presented as part of this Annual Report.
Trends and factors that could affect the Bank’s future development, performance and business position
The Board is cognizant of its responsibilities in setting the overall direction of the Bank. During the course of the year, the Board has
diligently overseen the progress of the Bank against the strategic objectives and has monitored the overall strategy considered to
reach those objectives. The Bank’s financial and operational soundness, governance structure, the effectiveness of internal controls
and audit functions and risk management framework continues to be monitored regularly. The Board continues to regularly review all
significant policies as per the regulatory requirements.
Factors that may potentially affect the Bank’s resources, revenues and operations are regularly focused and prioritized by the Board
in setting the overall strategic direction. These include:
• Decisions on Discount Rate / Monetary policy;

• Revisions to rate of returns on deposits;
• Repricing on loans and advances;
• New entrants to the competitive landscape; for eg. Fin-tech companies penetrating the retail payments business;
• Investment Strategy in the medium to short term as well as long term;
• Geo-Political risks and uncertainties, including law and order situation;
• Government rules and regulations;
• Inflation, fuel and general commodity prices;
• Corporate taxation measures;
• Technological advancements leading to competitive advantage;
• Dividend decisions and Capital Adequacy;
• The potential impacts of changes in accounting and regulatory framework.

Amongst the significant exercises conducted this year, was the impact assessment of the International Financial Reporting Standard
9, Financial Instruments, on the Bank’s financial statements. The Bank has engaged the services of a renowned consultant firm in
facilitating this review and eventual implementation of the requirements at the Bank.
Furthermore, the Bank is also performing impact assessments of other financial reporting standards on its financial position, as
detailed in note 2.3 to the financial statements. A key standard would be International Financial Reporting Standard 16, Leases, as
this would materially change the way rental agreements for the Bank’s rented branch premises are treated and accounted for.
While the above factors are regularly reviewed and monitored for any potential impacts, risks and uncertainties, some beyond control,
do remain. However, based on the Board’s current assessment, there are no significant doubts about the Bank’s ability to continue
as a going concern.
Financial Statements
The financial statements of the Bank have been audited without qualification by the auditors of the Bank, M/s. A.F. Ferguson & Co.,
Chartered Accountants and approved / authorized by the Board in its meeting held on 22 February 2019 for issuance to the shareholders.
No material changes and commitments affecting the financial position of your Bank have occurred between the end of the financial
year to which these financial statements relate and the date of the Director’s report.
External Auditors
The present auditors, M/s. A.F. Ferguson & Co., Chartered Accountants, have completed their term of five years, from 2014 to 2018,
and are not eligible for re-appointment as per the Listed Companies Corporate Governance Regulations.
On behalf of the management of the Bank and the Board, we would like to thank and appreciate the retiring auditors for the services
and support extended throughout the period of their appointment.
On the recommendation of the Board Audit Committee, the Board has proposed the appointment of M/s. KPMG Taseer Hadi & Co.,
as statutory external auditors of Bank for the year 2019. The appointment shall be subject to approval in the 27th Annual General
Meeting of the Bank’s shareholders.
The proposed firm of auditors have confirmed that they have been given a satisfactory rating under the Quality Control Review
program of the Institute of Chartered Accountants of Pakistan, and that the firm and all their partners are compliant with the
International Federation of Accountants' (IFAC) Guidelines on Code of Ethics, as adopted by the Institute of Chartered Accountants
of Pakistan, and meet the requirements for appointment under all applicable laws.
Corporate Social Responsibility
Soneri Bank remains firm in our commitment to actively contribute to socio-economic development. The Bank actively and regularly
participates in philanthropic efforts in the field of healthcare, education and women empowerment along with other areas of
community development, sports and rehabilitation. A summary of the bank’s key CSR activities during the year forms part of the
Annual Report.
During the current year, the Board of Directors has approved the Bank’s Green Banking Policy, developed in line with the SBP’s
guidelines issued in this regard. The policy encourages ecological environment friendly initiatives undertaken through adoption of a
defined set of principles. Internal structures that provide for administrative procedures have been defined so that employees are in

position to manage green banking requirements. Under the policy, the Bank is in the process of developing a systematic approach
to facilitate periodic review the Bank’s overall portfolio, its environmental risk positions and reporting to relevant stakeholders.
Six Years’ Operating and Financial Data
Six years’ financial performance of the bank is presented on page no 51 of this Annual Report.
Credit Rating
The Pakistan Credit Rating Agency (PACRA) has maintained bank’s credit rating of AA- for long term and A1+ for short term with
stable outlook, through its notification dated 20 December 2018. The rating reflects bank’s sustained and stable positions in the
market with strong risk profiling and lending capacity.
PACRA has also maintained credit rating of unsecured, subordinated and listed Term Finance Certificates (TFC – 2) issue of worth
PKR 3,000 million at A+ (Single A plus) with Stable Outlook, and the rating of the Bank’s unsecured, subordinated, rated, listed,
perpetual, non-cumulative and contingent convertible Term Finance Certificates (ADT – 1) issue of worth PKR 4,000 million at A
(Single A) with Stable Outlook also vide their notification dated 20 December 2018.
Pattern of Shareholding:
The pattern of shareholding as required under section 227(2)(f) of the Companies Act, 2017 forms part of this Director’s Report which
has been placed at page 189 of the Annual Report.
Related Party Transactions:
Transactions with related parties were carried out in the ordinary course of the Bank’s business and were conducted at arm’s length
basis. Details of these transactions are disclosed in note 45 to the financial statements.
Looking ahead
Moving ahead, the Bank aims to revamp its banking operations, technological progression and to bring in structural reforms to remain
competitive and to provide efficient and world-class services to its customers.
We will continue to diversify our deposit portfolio mix to further increase CASA percent and improve Cost of deposits. We further aim
to increase advance portfolio whilst maintaining controls and risk mitigation mechanism. The focus would be to make good recoveries
and thus further bring down NPL ratio.
Effective risk Management remains a top priority to mitigate all potential threats. Board Risk Management Committee is committed to
continue monitoring, assessment and management of the risk profile of the Bank.
The Board reiterates its objective to remain compliant with all statutory and regulatory guidelines and policies, to promote the culture
of integrity and compliance across the board.
The Bank is in process of digitalizing its processes and innovating new products to remain viable in the new digital era. Digitalization
comes with cyber security threats and risk. In order to address these challenges, the Bank is working towards formation of robust
and effectual processes that would help its customer to enjoy carefree banking.
Despite external pressures and economic headwinds, the board is confident that 2019 would be an aspiring year for Soneri Bank. We
would continue to perform well in all avenues to improve return for our shareholders.

Dividend
The Board of Directors of the Bank, in their meeting held on 22 February 2019, has recommended a final cash dividend (D-10) of Re. 1/-
per share (i.e. 10 percent) for the year ended 31 December 2018 to be approved in the 27th Annual General Meeting of the Shareholders.
Acknowledgment:
On behalf of the Board, we would like to take this opportunity to thank the State Bank of Pakistan, the Securities and Exchange
Commission of Pakistan, and other regulatory authorities for their continued guidance and support. At the same time, we would like
to express our gratitude to our shareholders, our valued customers and business partners for their patronage.
2018 was a year of technological change at the Bank, which presented many challenges. We would like to place on record, our
appreciation for the Bank’s employees for their relentless commitment, dedication and continued hard work in making this transition
possible. We are certain, that with this level of commitment and ownership, the Bank can achieve further accolades in the years to come.
For and on behalf of the Board of Directors,
MOHAMMAD AFTAB MANZOOR ALAUDDIN FEERASTA

President & Chief Executive Officer Chairman
Lahore: 22 February 2019

STATEMENT OF
INTERNAL CONTROLS
YEAR ENDED 31 DECEMBER 2018
This Statement of Internal Control is based on an ongoing process designed to:

- Identify the significant risks in achieving the bank’s policies, aims and objectives.
- Evaluate the nature and extent of those risks.
- Manage these risks efficiently, effectively and economically.
This process was in place for the year ended 31 December 2018.
The Board of Directors have instituted an effective Internal Audit Division which not only monitors compliance with the bank’s policies, procedures
and controls and reports significant deviations regularly to the Board Audit Committee but also regularly reviews the adequacy of the overall Internal
Control system. The observations and weaknesses pointed out by the external auditors are also addressed promptly and necessary steps are taken
by the management to eliminate such weaknesses.
It is the responsibility of the Bank’s management to establish and maintain an adequate and effective system of internal control, to implement sound
control procedures and to maintain a suitable control environment. In order to ensure implementation as well as to minimize various regulatory,
reputational and compliance risks, the management conducts on site monitoring of branches through periodical visits and off-site monitoring through
various automated tools such as SAS AML, World Check and Safe Watch Filtration system by Compliance Control & Investigation Group.
The Bank has adopted the internationally accepted COSO (Committee of Sponsoring Organizational of Tread way Commission) Internal Control-
Integrated Framework. A reputable advisory firm had been appointed to provide services on implementation of SBP guidelines on Internal Controls
over Financial Reporting (ICFR) in the prior years. To further strengthen controls, enhanced governance and monitoring the management had
constituted an Internal Control Department which is also an integral part of Compliance & Control Group of the Bank.
In order to ensure consistency in the process of compliance with the relevant guidelines the Bank followed a structured roadmap. Accordingly, the
Bank had completed a detailed documentation of the existing processes and controls, together with a comprehensive gap analysis of the control
design and development of implemented remediation plans for the gaps in 2010.
Furthermore, the Bank has developed a comprehensive management testing and reporting framework for ensuring ongoing operating effectiveness
of majority of key controls and has significantly addressed the design improvement opportunities identified to complete the project related initiatives.
While concerted efforts have always been made to comply with the SBP Guidelines issued, the identification, evaluation, and management of risks
within each of the Bank’s key activities, and their continued evaluation and changes to procedure remains an ongoing process.
In accordance with SBP directives, the Bank has completed all the stages of ICFR and upon satisfactory completion of ICFR roadmap, the SBP
granted waiver from the submission of external auditor Long Form Reports effective 2012. An annual assessment report by Board Audit Committee
on ICFR duly signed by chairman BAC is being submitted to SBP since then.
The Bank has also successfully completed the cycle of SBP’s Internal Control over Financial Reporting exercise for the Year 2018 and report will be
submitted by Board Audit Committee to the State Bank of Pakistan during the year 2019.
_______________________________
MOHAMMAD AFTAB MANZOOR
President & Chief Executive Officer

CODE OF
CONDUCT
(SUMMARIZED VERSION)
This Code of Conduct (Code) outlines the principles, policies and laws 5. POLITICAL PARTICIPATION
that govern the activities of Soneri Bank Limited (Bank), and to which No employee shall take part in, subscribe in any aid of, assist
the Board members, employees and others who work with the Bank, in or take part in any political activity whatsoever. No employee
or represent the Bank directly or indirectly must adhere. All employees shall canvass or otherwise, interfere or use his/her influence in
are required to read, understand, sign and follow the Code of Conduct. connection with or take part in any election to a legislative or
local body, whether in Pakistan or elsewhere. Provided that a
OBJECTIVE Bank employee who is qualified to vote at such elections may
Soneri Bank Limited (Bank) expects all of its employees to act in full exercise his/her right to vote.
compliance with the policies & guidelines set forth in this Code of
Conduct. It is the employee’s responsibility to make oneself familiar 6. PROTECTING BANKS RESOURCES
with the following and other policies related to their own business An employee must not peruse such outside business
unit: activity(ies) and relationships using Banks resources (including
but not limited to physical space, office supplies, office
1. OUTSIDE BUSINESS INTEREST communication equipment or time) or allow any outside
No employees shall engage directly or indirectly, in any other business, civic or charitable activities to interfere with his/her job
business but shall faithfully and diligently, perform the duties performance. Employees must never compromise on integrity,
entrusted to him /her from time to time and devote maximum either for personal or professional benefit. Each employee is
time and attention to work of the Bank, and ensure his/her best also personally responsible for the integrity of the information,
endeavors to promote its interest and welfare. No employee reports and records under his/her control.
shall take up any activity which will bring him/her any reward or
remuneration or benefit, directly or indirectly other than from the 7. ACT OF MISCONDUCT
job at the Bank. Employee shall not commit any act of subversion or misconduct
or misbehavior; and will also not act in any manner, which could
2. FINANCIAL INTEREST be prejudicial or detrimental to the interest of the Bank. The Bank
No employee or his/her immediate family shall enter into shall be entitled to dispense with the services of any employee,
speculative and trading activity in stocks, shares, bonds, or any any time per the law of his/her employment and/or repeated
other securities or commodities, either on his/her own account negligence, disobedience, dishonesty, breach of trust, acts of
or that of any other person, firm, company, nor shall involve in any other misconduct or subversion without any notice.
other speculative activity (ies) including betting/gambling. Further,
an employee and his/her immediate family shall not derive any 8. DATA SECURITY AND CONFIDENTIALITY
benefit or assist others to derive any benefit from the access to All employees shall avoid, during his/her employment or
and possession of information about the Bank, which is not in thereafter to disclose or divulge to any person whomsoever
the public domain and thus constitutes inside information. All the any information relating to the Bank or its customers, suppliers,
employees are required to comply with the applicable company employees or any confidential information which he/she may
law on prevention of insider trading. have access to while being in the service of the Bank. All
employees shall be bound to protect the confidentiality of the
3. ANTI BRIBERY & CORRUPTION non-public information at all times.
No employee shall accept any presents either in cash or kind
from Bank clients, suppliers, vendors and contractors or 9. ABIDANCE OF LAWS OF THE LAND
others, by way of illegal gratification or otherwise. Any such Notwithstanding anything contained hereinabove every
instance where business judgment has been compromised employee will abide by all the laws of the land including Labor
due to such monetary or non-monetary gifts will be considered Laws where applicable.
as a violation of this code. Accepting gifts and benefits that
may appear as engaging others in bribery or influencing for a 10. PUNCTUALITY
consideration for an official or business favor is prohibited. Employees are expected to be at work on time every business
day. In the event that employee is absent or late due to illness,
No employee shall give or take bribes or engage in any form of accident or personal reasons, he/she is required to inform his/
corruption. her supervisor as soon as possible so that the department
may make other arrangements for substitute help while the
4. VIOLATION OF LAW employee is away.
No payment or transaction should be made or undertaken, by an
employee or authorized or instructed to be made or undertaken 11. SEPARATION FROM THE BANK
by any other person or the Bank if the consequence of that In case of resignation every employee will have to attend his/her
transaction or payment would be the violation of any law in force. duties until the resignation is accepted and employee is relieved

by the competent authority. In case he/she fails to attend his/ 17. PASSWORD SECURITY
her duty after tendering resignation, the resignation will not be All employees are responsible to safeguard their password and
considered and he/she may be dealt according to the relevant ensure that they maintain honesty and integrity at all times.
HR Policy. Password is unique to an individual and its sharing is strictly
prohibited. In an event where it is reported that employees have
Employees at the time of separation from Bank should return shared their login credentials (User ID/Password) with other
Bank assets, facilities (blackberry, laptop, mobile etc), visiting employees, both the parties would be accountable and liable
and Identity cards, stamps etc. to strict disciplinary action which may result in termination from
employment.
12. ETHICS, DISCRIMINATION OR HARASSMENT
All employees are expected to comply with ethical standards 18. USE OF COMMUNICATION TOOLS
as a critical element of their responsibilities. It is encouraged to Bank’s telephone, e-mail, voice-mail, computer, systems etc are
raise possible ethical issues and Bank prohibits any retaliatory primarily for business purposes. Employees may not use these
action against any individual for raising legitimate concerns systems in a manner that could be harmful or embarrassing
regarding ethics, discrimination or harassment matters or to the Bank. Personal communications using these systems
for reporting suspected violations. In case of any issue that must be kept to a minimum. In case of his/her separation from
has been reported, investigation/inquiry shall be held, and the Bank, all rights to property and information generated or
all employees are required to fully co-operate with any obtained as part of an employment relationship remains the
appropriately authorized internal or external investigations. exclusive property of the Bank only.

13. DRESS CODE & PERSONAL HYGIENE An employee must never use Bank systems to transmit or
Employees are expected to dress in a manner consistent with receive electronic images or text of a sexual nature or containing
the nature of work performed. While at work, all employees are ethnic slurs, racial epithets or any other material of a harassing,
expected to dress neatly and appropriately in normal office as offensive or lewd nature.
per the Dress code policy of the Bank.
19. RECORD MANAGEMENT
Records are very important business assets. The Bank is
All employees are expected to abide with the personal hygiene
committed to managing its records in a consistent, systematic
requirements.
and reliable manner; records provide evidence for business
activities and decisions and are often required to meet legal
14. PROTECTING BANK RESOURCES
and regulatory requirements. Employees are required to retain
All employees are responsible for safeguarding the tangible
the records in accordance with their importance and applicable
and intangible assets of the Bank and its customers, suppliers
statutory record retention requirements and Bank policies.
and distributors that are under their control. Bank assets may
be used only for proper company purpose. Misappropriation,
20. TAXATION
carelessness or waste of Bank assets is a breach of one’s duty
The Bank is also committed to accuracy in tax related records
to the Bank and should be avoided at all cost.
and tax reporting in compliance with the overall intent and
applicable laws. Tax returns must be filed on a timely basis and
15. FRAUD, THEFT OR ILLEGAL ACTIVITY
taxes due paid in time.
An employee must not:
- steal, embezzle or misappropriate money, funds or anything
21. WORKFORCE DIVERSITY
of value from the Bank, doing so shall subject him/her to
The Bank believes that diversity in the staff is critical to
potential disciplinary action according to the Bank policy
its success and is fully committed to equal employment
- use Bank’s assets for personal gain or advantage
opportunity, compliance with fair employment practices and
- remove Bank’s assets from their premises and facilities unless
non discrimination laws. The Bank prohibits sexual or any other
properly authorized by the relevant competent authority
kind of discrimination, harassment or intimidation, whether
- use Bank’s stationery or corporate documents, Bank’s
committed by or against a supervisor, co-worker, customer,
brand name for non official purposes since such implies
vendor or visitor.
endorsement from Soneri Bank
22. RELATED STAFF MEMBERS
16. EMPLOYEE IDENTIFICATION & SECURITY Where husbands, wives or other relatives are employed in the
If employees are supplied with an identification card, this must same or related areas, no employee should allow personal and/
be worn visibly when on Bank’s premises. Each employee is or domestic circumstances to impinge upon or affect either
also responsible for the safekeeping of his/her ID card. working relationships or the breach of Bank’s employment
regulations regarding confidentiality and fidelity.

23. DRUG FREE WORKPLACE 29. ACCESS TO BUSINESS INFORMATION
Selling, manufacturing, distributing, possessing, using or being Employees should also take steps to ensure that business
under the influence of illegal drugs on the job is prohibited. related paper work and documents are produced, copied
properly filed and stored or if not needed, should be properly
24. HEALTH AND SAFETY discarded to minimize the risk that an unauthorized person
To protect the well being of the Bank’s valued customers and might obtain access to confidential information. Access to work
employees, smoking and eating betel leaf within the premises areas and systems should also be properly controlled.
of Bank is strictly prohibited.
30. CUSTOMER CONFIDENTIALITY
25. UNFAIR DEALING PRACTICES Employees of the Bank are strictly prohibited to disclose the
No employee may take unfair advantage of anyone through fact to the customer or any other quarter that a suspicious
manipulation, concealment, abuse of confidential information, transaction or related information is being or has been reported
misrepresentation of facts or other unfair dealing practices. to any authority, except if required by law.
26. MEDIA AND PUBLIC SPEAKING 31. PERSONAL INVESTMENTS

No employee other than the authorized personnel is allowed If any personal investment that affects or appears to affect an
to publish, make speech, give interviews or make public employee’s ability to make an unbiased business decision for
appearance that are connected to Bank’s business interests, Bank, should be avoided.
else an approval is required from Head of HR, Head of
Compliance and President. 32. PERSONAL FINANCIAL NEEDS
Bank employee and their families are encouraged to use the
27. VENDOR RELATIONSHIP Bank for their personal financial services needs.
Employees responsible for buying assets on Bank’s behalf
should purchase all goods and services on the basis of quality, 33. MODIFICATIONS AND AMENDMENTS
price, availability, terms and service. Employees responsible for The Code of Conduct is subject to variances, modifications,
customer relationship must never lead a supplier or customer to and amendments, from time to time through the resolution of
believe that they can inappropriately influence any procurement the Board of Directors.
decisions at Bank. Employees shall ensure to abide by all the
provisions of the Fixed Asset Management and Expenditure 34. BREACH OF CODE OF CONDUCT
Control Policies of the Bank In case of the breach of any of the above “Code of Conduct”,
the employee shall be liable to disciplinary action. This shall be
28. CONFLICT OF INTEREST without prejudice, to any other rights and remedies of the Bank.
Real or perceived conflicts of interest in any process or form
should be disclosed and avoided. An employee or any of his/ Failure to observe these policies may result in a disciplinary
her relatives/associates should not derive any undue personal action, up to and including immediate termination of employment
benefit or advantage by virtue of his/her position or relationship or any other relationship with the Bank. Furthermore, violations
with the Bank. Any dealings with a related party must be of this Code may also be violations of the law and may result in
conducted in such a way that no preferential treatment is given civil or criminal penalties.
and adequate disclosures are made as required by the law and
as per the applicable policies of the Bank. If an employee has any questions about these policies or would
like to report violation of the Code of Conduct, he/she may
Employees must be sensitive to any activities, interests or approach Head of Compliance Division for further guidance
relationships that might interfere with or even appear to interfere and advice.
with his/her ability to act in the best interests of the Bank and its
customers.
An employee must notify an authorized person or HR of any

business relationship or proposed business transaction Bank
may have with any company in which he/she or a related
party has a direct or indirect interest or from which he/she or
related party may drive a benefit. Even if related party or relative
is employed, this may raise conflict of interest. Therefore, it
should be avoided.


MECHANISM ADOPTED FOR
BOARD’S PERFORMANCE EVALUATION
Soneri Bank Limited has put in place a mechanism whereby Performance of overall Board is evaluated annually. Quantitative technique is used where
scaled questionnaire is provided to each director to obtain their feedback. Assessment is carried out for the following categories:-
• Overall Board
• Chairman of the Bank
• CEO of the Bank
• Sponsor Directors
• Independent Directors
• Individual Directors
• Board Committees
Scale from 1 to 5 (1 being “Strongly disagree” and 5 being “Very strongly agree”) is used to rate the assessment criteria given under each section.
Feedback so received from each director is then collated and analyzed to denote Performance in percentage terms against each of the above
mentioned section.
Final result of the Annual Evaluation of the Board’s Performance is then presented to the Board of Directors which it accordingly reviews and identifies
any issues, weaknesses or challenges along with how these can be adequately addressed. Accordingly, Board has reviewed its Performance
Evaluation for the year 2017 in its 160th meeting convened on 20 February 2018.
Further, in line with the requirements of the SBP BPRD Circular No.11 dated 22.08.2016, the Bank engaged Pakistan Institute of Corporate
Governance (“PICG”) to independently conduct Board’s Performance Evaluation. Accordingly, PICG conducted Board Evaluation where it directly
collected feedback from each director via online participation. Feedback so collected was then sent by PICG to “the Corporate L.I.F.E Centre
International Inc.” (“CLCI”) – their project partner based at Canada for analysis and assessment. Assessment Report finalized by them was presented
to the Board, which it reviewed in its 167th meeting convened on 22 February 2019 and the challenges identified by them have been duly noted to
be addressed.
This mechanism disclosure on the evaluation process adopted by the Soneri Bank Limited is being published for all the stakeholders in compliance
of the BPRD Circular No.11 dated 22 August 2016.

STATEMENT OF COMPLIANCE WITH LISTED COMPANIES
(CODE OF CORPORATE GOVERNANCE) REGULATIONS, 2017
YEAR ENDED 31 DECEMBER 2018
The Bank has complied with the requirements of the Regulations in the following manner:
1. The total number of Directors are eight (8) including the President and Chief Executive Officer as per the following:
Male 08
Female Nil
2. The composition of Board is as follows:
Category Names
Independent Directors Mr. Inam Elahi
Other Non-Executive Directors Mr. Alauddin Feerasta

Mr. Nooruddin Feerasta
Mr. Muhammad Rashid Zahir
Mr. Manzoor Ahmed (NIT Nominee)
Executive Directors Mr. Mohammad Aftab Manzoor*

(President & Chief Executive Officer)
Mr. Amin A. Feerasta
(Chief Operating Officer)
* He is a deemed director as per the criteria given under Clause 3 of Section 188 of the Companies Act, 2017.
The independent Directors meet the criteria of independence as laid down under Section 166 of the Companies Act, 2017.

3. The directors have confirmed that none of them is serving as a director on more than five listed companies, including this company (excluding
the listed subsidiaries of listed holding companies where applicable) except one director who has valid SECP exemption.
4. The Bank has prepared a “Code of Conduct” and has ensured that appropriate steps have been taken to disseminate it throughout the Bank
along with its supporting policies and procedures.
5. The Board has developed a vision/mission statement, overall corporate strategy and significant policies of the company. A complete record of
particulars of significant policies along with the dates on which they were approved or amended has been maintained.
6. All the powers of the Board have been duly exercised and decisions on relevant matters have been taken by Board/ Shareholders as empowered
by the relevant provisions of the Act and these Regulations.
7. The meetings of the Board were presided over by the Chairman and, in his absence, by a director elected by the Board for this purpose. The
Board has complied with the requirements of the Act and the Regulations with respect to frequency, recording and circulating minutes of
meeting of the Board.
8. The Board of Directors has a formal policy and transparent procedures for remuneration of directors in accordance with the Act and these
Regulations.
9. The Board has arranged Directors’ Training program for the following:

a) Directors’ Training
Name of Director Category Director Program

Mr. Mohammad Aftab Manzoor President & CEO Certificate of Director Education by PICG
Mr. Amin A. Feerasta Executive Director Certificate of Director Education by PICG
Mr. Inam Elahi Non-Executive Director Certificate of Director Education by PICG
Mr. Manzoor Ahmed Non-Executive Director Certificate of Director Education by PICG
Both M/s Alauddin Feerasta, Chairman and Nooruddin Feerasta, Director had participated in a three full days’ workshop on “Corporate
Governance & Duties Excellence” held in Malaysia. Further Mr. Muhammad Rashid Zahir had attended a week long course of Institute of
Directors, UK held by PICG.
b) Executives’ Training
Name of Director Designation Director Program

Mr. Muhammad Altaf Butt Company Secretary Certificate in Company Direction
(International) by Institute of Directors, UK
Mr. Syed Asim Ali Head of Internal Audit Certificate of Director Education by PICG
10. The Board has approved the appointment of CFO, Company Secretary and Head of Internal Audit, including their remuneration and terms and
conditions of employment and complied with relevant requirements of the Regulations.
11. CFO and CEO duly endorsed the financial statements before approval of the Board.
12. The Board has formed committees comprising of members as given below:
a) Audit Committee of the Board
Name of Director Category

Mr. Inam Elahi Chairman
Mr. Nooruddin Feerasta Member
Mr. Muhammad Rashid Zahir Member
Mr. Jamil Hassan Hamdani Member
b) Credit Committee of the Board

Mr. Nooruddin Feerasta Chairman
Mr. Alauddin Feerasta Member
Mr. Mohammad Aftab Manzoor Member
Mr. Muhammad Rashid Zahir Member
Mr. Manzoor Ahmed Member

c) Human Resource & Remuneration Committee of the Board*

Mr. Manzoor Ahmed Chairman
Mr. Inam Elahi Member
* The composition of the Human Resource & Remuneration Committee (HRRC) is in line with the Revised Guidelines on Remuneration Practices
2017 issued by the State Bank of Pakistan which allows a non-executive director to be the Chairman in case the majority members of the
committee are independent directors. Following the guidelines majority members of HRRC are independent directors, however, the Chairman
of the HRRC is not an Independent Director.
d) Risk Management Committee of the Board

Mr. Manzoor Ahmed Chairman
Mr. Mohammad Aftab Manzoor Member
Mr. Amin A. Feerasta Member

e) Committee of Independent Directors of the Board

Mr. Jamil Hassan Hamdani Chairman
f) IT Committee of the Board

Mr. Amin A. Feerasta Chairman
Mr. Manzoor Ahmed Member
13. The Terms of Reference of the aforesaid Committees have been formed, documented and advised to the Committees for compliance.
14. The frequency of meetings (quarterly/half yearly/ yearly) of the committee were as per the followings:
a) Audit Committee of the Board

The Audit Committee shall meet at least once every quarter of the financial year.

b) Credit Committee of the Board
The Credit Committee shall meet at least once every quarter of the financial year.
c) Human Resource & Remuneration Committee of the Board
The Human Resource and Remuneration Committee shall meet once every quarterly and may meet more frequently as it determines or
circumstances dictate.
d) Risk Management Committee of the Board
A minimum of four meetings in a financial year should be held on quarterly bases.
e) Committee of Independent Directors of the Board
The Committee of Independent Directors shall meet at least once every financial year.
f) IT Committee of the Board
The IT Committee shall meet biannually on a minimum basis; however it can meet more frequently if required.
15. The Board has set up an effective Internal Audit Function, who are considered suitably qualified and experienced for the purpose and are
conversant with the policies and procedures of the company.
16. The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality control review program of
the ICAP and registered with Audit Oversight Board of Pakistan, that they or any of the partners of the firm, their spouses and minor children do
not hold shares of the Bank and that the firm and all its partners are in compliance with International Federation of Accountants (IFAC) guidelines
on code of ethics as adopted by the ICAP.
17. The statutory auditors or the persons associated with them have not been appointed to provide other services except in accordance with the
Act, these regulations or any other regulatory requirement and the auditors have confirmed that they have observed IFAC guidelines in this
regard.
18. We confirm that all other requirements of the Regulations have been complied with.
_______________________________ _______________________________
MOHAMMAD AFTAB MANZOOR ALAUDDIN FEERASTA
President & Chief Executive Officer Chairman

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE
MEMBERS ON THE STATEMENT OF COMPLIANCE CONTAINED
IN LISTED COMPANIES (CODE OF CORPORATE GOVERNANCE)
REGULATIONS, 2017
We have reviewed the enclosed Statement of Compliance with the Listed Companies (Code of Corporate Governance) Regulations, 2017 (the
Regulations) prepared by the Board of Directors of Soneri Bank Limited (‘the Bank’) for the year ended December 31, 2018 in accordance with the
requirements of regulation 40 of the Regulations.
The responsibility for compliance with the Regulations is that of the Board of Directors of the Bank. Our responsibility is to review whether the
Statement of Compliance reflects the status of the Bank’s compliance with the provisions of the Regulations and report if it does not and to highlight
any non-compliance with the requirements of the Regulations. A review is limited primarily to inquiries of the Bank’s personnel and review of various
documents prepared by the Bank to comply with the Regulations.
As a part of our audit of the financial statements, we are required to obtain an understanding of the accounting and internal control systems sufficient
to plan the audit and develop an effective audit approach. We are not required to consider whether the Board of Directors’ statement on internal
control covers all risks and controls or to form an opinion on the effectiveness of such internal controls, the Bank’s corporate governance procedures
and risks.
The Regulations require the Bank to place before the Audit Committee, and upon recommendation of the Audit Committee, place before the Board of
Directors for their review and approval, its related party transactions and also ensure compliance of this requirements of section 208 of the Companies
Act, 2017. We are only required and have ensured compliance of this requirement to the extent of the approval of the related party transactions by the
Board of Directors upon recommendation of the Audit Committee. We have not carried out procedures to assess and determine the Bank’s process
for identification of related parties and that whether the related party transactions were undertaken at arm’s length price or not.
Based on our review, nothing has come to our attention which causes us to believe that the Statement of Compliance does not appropriately reflect
the Bank’s compliance, in all material respects, with the requirements contained in the Regulations as applicable to the Bank for the year ended
December 31, 2018.
Further, we highlight below instance of non-compliance with the requirement of the Regulations as reflected in the paragraph reference where it is
stated in the Statement of Compliance:
Paragraph Reference Description
12(c) The composition of the Human Resource & Remuneration Committee (HRRC) is in line with the
Revised Guidelines on Remuneration Practices 2017 issued by the State Bank of Pakistan which
allows a non-executive director to be the Chairman in case the majority members of the committee
are independent directors. Following the guidelines majority members of HRRC are independent
directors, however, the Chairman of the HRRC is not an Independent Director.
A. F. FERGUSON & CO.,

Chartered Accountants
a member firm of the PwC network
Karachi: March 01, 2019

AN ELEMENT OF
PRECISION
We at Soneri Bank symbolise determination, intelligence and precision
in all our practices. Our meticulous work and attention to details are the
factors that ensure transparency in our financial statements.
FINANCIAL
STATEMENTS

INDEPENDENT AUDITORS’
REPORT TO THE MEMBERS
Report on the Audit of the Financial Statements
Opinion
We have audited the annexed financial statements of Soneri Bank Limited (the Bank), which comprise the statement of financial position as at
December 31, 2018, and the profit and loss account, the statement of comprehensive income, the statement of changes in equity and the cash
flow statement for the year then ended, along with unaudited certified returns received from the branches except for 35 branches which have been
audited by us and notes to the financial statements, including a summary of significant accounting policies and other explanatory information and we
state that we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of
the audit.
In our opinion and to the best of our information and according to the explanations given to us, the statement of financial position, the profit and loss
account, the statement of comprehensive income, the statement of changes in equity and the cash flow statement together with the notes forming
part thereof conform with the accounting and reporting standards as applicable in Pakistan, and, give the information required by the Banking
Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017), in the manner so required and respectively give a true and fair view of the
state of the Bank’s affairs as at December 31, 2018 and of the profit and other comprehensive loss, the changes in equity and its cash flows for the
year then ended.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in Pakistan. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of the Bank in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants as adopted
by the Institute of Chartered Accountants of Pakistan (the Code) and we have fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current
period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Following are the Key Audit Matters:
S.No. Key Audit Matters How the matter was addressed in our audit
Provision against advances
1
(Refer note 9 to the financial statements)
The Bank makes provision against advances on a time based criteria Our audit procedures to verify provision against advances, amongst
that involves ensuring all non-performing loans and advances are others, included the following:
classified in accordance with the ageing criteria specified in the
Prudential Regulations (PRs) issued by the State Bank of Pakistan We reviewed the design and tested the operating effectiveness of
(SBP). key controls established by the Bank to identify loss events and
for determining the extent of provisioning required against non
In addition to the above time based criteria the PRs require a -performing loans.
subjective evaluation of the credit worthiness of borrowers to
determine the classification of advances. The testing of controls included testing of:
• controls over correct classification of non-performing advances
The PRs also require the creation of general provision for the on time based criteria;
consumer portfolio.
• controls over monitoring of advances with higher risk of default
The Bank has recorded net reversal of provision against advances and correct classification of non-performing advances on
amounting to Rs. 85.749 million in the profit and loss account in the subjective criteria;
current year. As at December 31, 2018, the Bank holds a provision
of Rs. 8,356.022 million against advances. • controls over accurate computation and recording of
provisions; and
The determination of provision against advances based on the above
criteria remains a significant area of judgement and estimation. • controls over the governance and approval process related
Because of the significance of the impact of these judgements/ to provisions, including continuous reassessment by the
estimations and the materiality of advances relative to the overall management.
statement of financial position of the Bank, we considered the area
of provision against advances as a key audit matter. In accordance with the regulatory requirement, we sampled and
tested at least sixty percent of the total advances portfolio and
performed the following substantive procedures for sample loan
accounts:

S.No. Key Audit Matters How the matter was addressed in our audit
• verified repayments of loan / mark-up installments and checked
that non-performing loans have been correctly classified and
categorized based on the number of days overdue.
• examined watch list accounts and, based on review of

the individual facts and circumstances, discussions with
management and our assessment of financial conditions of the
borrowers, formed a judgement as to whether classification of
these accounts as performing was appropriate.
We checked the accuracy of specific provision made against

non-performing advances and of general provision made against
consumer finance by recomputing the provision amount in
accordance with the criteria prescribed under the PRs.
Change in format of the financial statements
2
(Refer note 4.2 to the financial statements)
The State Bank of Pakistan (SBP) has amended the format of annual We reviewed and understood the requirements of the SBP’s
financial statements of banks. All banks are directed to prepare their amended format of annual financial statements for banks. Our audit
annual financial statements on the revised format effective from procedures included the following:
the accounting year ending December 31, 2018. Accordingly, the
Bank has prepared these financial statements on the new format • considered the management’s process to identify the changes
prescribed by the State Bank of Pakistan. required in the financial statements to comply with the new
format; and
As part of this transition to the new requirements, the management
performed a gap analysis to identify differences between the previous • obtained relevant underlying supports relating to changes
and current format. The adoption of the new format required certain required in the financial statements consequent to the
recognition requirements and reclassification of certain financial adoption of the new format to assess their appropriateness
information. The amended format also introduced certain new and verified them on a test basis.
disclosures in the financial statements.
In view of the significant impact of the first time adoption of the

revised format on these financial statements, we considered this as
a key audit matter.
Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information comprises the information included in the Annual Report, but does not
include the financial statements and our auditor’s reports thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Responsibilities of Management and the Board of Directors for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting and reporting
standards as applicable in Pakistan, the requirements of Banking Companies Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and
for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the
Bank or to cease operations, or has no realistic alternative but to do so.
The Board of directors is responsible for overseeing the Bank’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with ISAs as applicable in Pakistan will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs as applicable in Pakistan, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
We also provide to the Board of Directors with a statement that we have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
Based on our audit, we further report that in our opinion:
a) proper books of account have been kept by the Bank as required by the Companies Act, 2017 (XIX of 2017) and the returns referred
above from the branches have been found adequate for the purpose of our audit;
b) the statement of financial position, the profit and loss account, the statement of comprehensive income, statement of changes in
equity and cash flow statement together with the notes thereon have been drawn up in conformity with the Banking Companies
Ordinance, 1962 and the Companies Act, 2017 (XIX of 2017) and are in agreement with the books of account and returns;
c) investments made, expenditure incurred and guarantees extended during the year were in accordance with the objects and powers
of the Bank and the transactions of the Bank which have come to our notice have been within the powers of the Bank; and
d) zakat deductible at source under the Zakat and Ushr Ordinance, 1980 (XVIII of 1980), was deducted by the Bank and deposited in
the Central Zakat Fund established under section 7 of that Ordinance.
2. We confirm that for the purpose of our audit we have covered more than sixty per cent of the total loans and advances of the Bank.
The engagement partner on the audit resulting in this independent auditor’s report is Noman Abbas Sheikh.
A. F. FERGUSON & CO.,

Chartered Accountants
a member firm of the PwC network
Karachi: March 01, 2019

STATEMENT OF
FINANCIAL POSITION
AS AT 31 DECEMBER 2018
Note 2018 2017 2016

(Restated) (Restated)
----------------- (Rupees in ‘000) -----------------
ASSETS
Cash and balances with treasury banks 5 26,019,679 19,431,256 18,278,840
Balances with other banks 6 1,179,612 1,151,015 822,689
Lendings to financial institutions 7 3,921,270 6,502,687 5,521,875
Investments 8 146,645,533 117,428,516 117,883,960
Advances 9 186,475,183 164,292,915 125,305,765
Fixed assets 10 6,238,673 6,464,678 4,936,122
Intangible assets 11 454,536 116,787 202,302
Deferred tax assets - - -
Other assets 12 11,563,302 9,831,441 8,853,536
382,497,788 325,219,295 281,805,089
LIABILITIES
Bills payable 14 3,993,525 4,895,447 4,163,509
Borrowings 15 81,962,917 64,584,236 38,905,078
Deposits and other accounts 16 262,378,761 227,304,100 209,893,582
Liabilities against assets subject to finance lease - - -
Subordinated debt 17 6,996,400 2,997,600 2,998,800
Deferred tax liabilities 18 120,054 935,711 1,137,530
Other liabilities 19 9,057,257 5,997,602 6,417,363
364,508,914 306,714,696 263,515,862
NET ASSETS 17,988,874 18,504,599 18,289,227
REPRESENTED BY
Share capital 20 11,024,636 11,024,636 11,024,636
Reserves 2,109,227 1,752,494 1,423,829
Surplus on revaluation of assets 21 542,637 2,095,099 2,393,260
Unappropriated profit 4,312,374 3,632,370 3,447,502
17,988,874 18,504,599 18,289,227
CONTINGENCIES AND COMMITMENTS 22
The annexed notes 1 to 50 and Annexures I to III form an integral part of these financial statements.
Mirza Zafar Baig Alauddin Feerasta Mohammad Aftab Manzoor Nooruddin Feerasta Jamil Hassan Hamdani
Chief Financial Officer Chairman President & Chief Executive Officer Director Director

PROFIT AND
LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2018
Note 2018 2017

(Restated)
---------(Rupees in ‘000)---------
Mark-up / return / interest earned 23 21,599,792 18,504,526

Mark-up / return / interest expensed 24 14,646,799 12,032,444
Net mark-up / interest income 6,952,993 6,472,082
Non mark-up / interest income

Fee and commission income 25 1,705,716 1,392,650
Dividend income 258,938 240,327
Foreign exchange income 988,637 623,807
Gain on securities - net 26 260,127 1,158,278
Other income 27 46,753 41,052
Total non-markup / interest Income 3,260,171 3,456,114
Total income 10,213,164 9,928,196
Non mark-up / interest expenses

Operating expenses 28 7,420,176 6,942,982
Workers’ Welfare Fund - net 29 (61,077) 59,498
Other charges 30 20,484 650
Total non mark-up / interest expenses 7,379,583 7,003,130
Profit before provisions 2,833,581 2,925,066

(Reversals) / provisions and write offs - net 31 (71,072) 77,503
Extraordinary / unusual items - -
Profit before taxation 2,904,653 2,847,563
Taxation 32 1,120,989 1,187,644
Profit after taxation 1,783,664 1,659,919
------------- Rupees -------------
Basic earnings per share 33 1.6179 1.5056
Diluted earnings per share 34 1.6179 1.5056

STATEMENT OF
COMPREHENSIVE INCOME
2018 2017
(Restated)
---------(Rupees in ‘000)---------
Profit after taxation for the year 1,783,664 1,659,919
Other comprehensive income
Items that may be reclassified to profit and loss account in subsequent periods:
Movement in deficit on revaluation of investments - net of tax (1,489,708) (1,274,859)
Items that will not be reclassified to profit and loss account in subsequent periods:
Remeasurement gain on defined benefit obligations - net of tax 17,167 5,999
Movement in surplus on revaluation of operating fixed assets - net of tax - 1,202,392
17,167 1,208,391
Total comprehensive income 311,123 1,593,451

CASH FLOW
STATEMENT
Note 2018 2017

(Restated)
---------(Rupees in ‘000)---------
CASH FLOWS FROM OPERATING ACTIVITIES

Less: dividend income 258,938 240,327
2,645,715 2,607,236
Adjustments:
Depreciation on fixed assets 10.2 485,423 566,783
Depreciation on ijarah assets 113,542 82,977
Amortisation 11 129,216 120,787
(Reversals) / provisions and write offs - net 31 (71,072) 77,503
Gain on sale of fixed assets - net 27 (26,398) (17,897)
Workers’ Welfare Fund - net 29 (61,077) 59,498
Unrealised gain on revaluation of investments classified as held-for-trading 26 (1,145) (34)
568,489 889,617
3,214,204 3,496,853
(Increase) / decrease in operating assets
Lendings to financial institutions 2,581,417 (980,812)
Held-for-trading securities 3,299,502 (10,525,132)
Advances (22,210,061) (39,133,407)
Other assets (excluding advance taxation) (1,933,274) (473,691)
(18,262,416) (51,113,042)
Increase / (decrease) in operating liabilities
Bills payable (901,922) 731,938
Borrowings from financial institutions 17,368,132 25,539,709
Deposits 35,074,661 17,410,518
Other liabilities 3,147,143 (470,031)
54,688,014 43,212,134
Income tax paid (966,397) (1,525,730)
Net cash flow generated from / (used in) operating activities 38,673,405 (5,929,785)
CASH FLOWS FROM INVESTING ACTIVITIES

Net investments in available-for-sale securities (35,258,354) 11,197,279
Net investments in held-to-maturity securities 449,853 (2,181,159)
Dividend received 278,049 228,166
Investments in operating fixed assets (738,604) (616,943)
Proceeds from sale of fixed assets 30,170 23,014
Net cash flow (used in) / generated from investing activities (35,238,886) 8,650,357
CASH FLOWS FROM FINANCING ACTIVITIES

Receipts / payments of subordinated debt 3,998,800 (1,200)
Dividend paid (826,848) (1,378,079)
Net cash flow generated from / (used in) financing activities 3,171,952 (1,379,279)
Increase in cash and cash equivalents 6,606,471 1,341,293

Cash and cash equivalents at beginning of the year 20,305,022 18,963,729
Cash and cash equivalents at end of the year 36 26,911,493 20,305,022

STATEMENT OF
CHANGES IN EQUITY
Statutory Surplus / (deficit) on Unappro-

Share
reserve revaluation of priated Total
capital
(a) Investments Fixed assets profit
--------------------------------- Rupees in ‘000 ---------------------------------
Balance as at 31 December 2016 as previously reported 11,024,636 1,423,829 - - 3,496,305 15,944,770
Effect of retrospective change in accounting policy
- Reclassification of surplus to equity - net of tax (note 4.2) - - 1,417,831 926,626 2,344,457
- Deficit on revaluation of fixed assets transferred
to unappropriated profit (note 4.1) - - - 48,803 (48,803) -
Balance as at 31 December 2016 (restated) 11,024,636 1,423,829 1,417,831 975,429 3,447,502 18,289,227
Comprehensive income for the year

Profit after taxation for the year ended 31 December 2017 (restated) - - - - 1,659,919 1,659,919
Other comprehensive income / (loss)

- Movement in surplus / (deficit) on revaluation of investments - net of tax - - (1,274,859) - - (1,274,859)
- Remeasurement gain on defined benefit obligations - net of tax - - - - 5,999 5,999
- Movement in surplus on revaluation of operating fixed assets - net of tax - - - 1,202,392 - 1,202,392
- - (1,274,859) 1,202,392 1,665,918 1,593,451
Transfer to statutory reserve - 328,665 - - (328,665) -
Transfer from surplus on revaluation of assets to unappropriated profit - net of tax - - - (225,694) 225,694 -
Transactions with owners recorded directly in equity

Final cash dividend for the year ended 31 December 2016 at Rs. 1.25 per share - - - - (1,378,079) (1,378,079)
Balance as at 31 December 2017 (restated) 11,024,636 1,752,494 142,972 1,952,127 3,632,370 18,504,599
Comprehesive income for the year

Profit after taxation for the year ended 31 December 2018 - - - - 1,783,664 1,783,664
Other comprehensive income / (loss)

- Movement in surplus / (deficit) on revaluation of investments - net of tax - - (1,489,708) - - (1,489,708)
- Remeasurement gain on defined benefit obligations - net of tax - - - - 17,167 17,167
- - (1,489,708) - 1,800,831 311,123
Transfer to statutory reserve - 356,733 - - (356,733) -
Transfer from surplus on revaluation of assets to unappropriated profit - net of tax - - - (62,754) 62,754 -
Transactions with owners recorded directly in equity

Final cash dividend for the year ended 31 December 2017 at Re 0.75 per share - - - - (826,848) (826,848)
Balance as at 31 December 2018 11,024,636 2,109,227 (1,346,736) 1,889,373 4,312,374 17,988,874
(a) This represents reserve created under section 21(i)(a) of the Banking Companies Ordinance, 1962.
(b) As explained in note 9.3.4 to these financial statements, unappropriated profit includes an amount of Rs. 1,107.124 million net of tax as at 31 December 2018 (31
December 2017: Rs. 829.847 million) representing additional profit arising from availing forced sales value benefit for determining provisioning requirement which is not
available for distribution either as cash or stock dividend to shareholders and bonus to employees.

NOTES TO AND FORMING PART
OF THE FINANCIAL STATEMENTS
1 STATUS AND NATURE OF BUSINESS
Soneri Bank Limited (“the Bank”) was incorporated in Pakistan on 28 September 1991 as a public limited company under the repealed
Companies Ordinance, 1984 (now Companies Act, 2017). Its registered office is situated at Rupali House 241-242, Upper Mall Scheme,
Anand Road, Lahore, Punjab and its shares are quoted on Pakistan Stock Exchange Limited. The Bank is engaged in banking services
as described in the Banking Companies Ordinance, 1962 and operates with 295 branches including 21 Islamic banking branches (2017:
290 branches including 19 Islamic banking branches) in Pakistan. The credit rating of the Bank is disclosed in note 37 to the financial
statements.
2 BASIS OF PRESENTATION
In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State
Bank of Pakistan has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase
of goods by banks from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. The
purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the
amount of facility actually utilised and appropriate portion of mark-up thereon.
The financial results of all Islamic banking branches of the Bank have been consolidated in these financial statements for reporting
purposes, after eliminating material intra branch transactions / balances. The financial results of all Islamic banking branches are disclosed
in Annexure II to these financial statements.
2.1 STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan.
The accounting and reporting standards comprise of:
- International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) as are notified
under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified
under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP) from time
to time.
2.1.1 Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017, or the directives issued by SBP and
the SECP differ with the requirements of IFRS or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies
Act, 2017 and the said directives shall prevail.
2.1.1.1 The SBP, vide its BSD Circular Letter no. 10 dated 26 August 2002 has deferred the applicability of International Accounting Standard
39, Financial Instruments: Recognition and Measurement and International Accounting Standard 40, Investment Property, for banking
companies till further instructions. Further, the SECP, through S.R.O 411(1) / 2008 dated 28 April 2008, has deferred the applicability of
IFRS 7, Financial Instruments: Disclosures, to banks. Accordingly, the requirements of these standards have not been considered in the
preparation of these financial statements. However, investments have been classified and valued in accordance with the requirements
prescribed by the SBP through various circulars.
2.1.2 The SBP vide its BPRD Circular No. 04 dated 25 February 2015 has clarified that the reporting requirements of IFAS-3 for Islamic Banking
Institutions (IBIs) relating to annual, half yearly and quarterly financial statements would be notified by SBP through issuance of specific
instructions and uniform disclosure formats in consultation with IBIs. These reporting requirements have not been notified to date.
Accordingly, the disclosure requirements under IFAS 3 have not been considered in these financial statements.
2.2 Standards, interpretations and amendments to published accounting and reporting standards that are effective in the
current year:
There are certain new standards, amendments and interpretations that are mandatory for the Bank’s accounting periods beginning on
or after 01 January 2018 but are considered not to be relevant or do not have any significant effect on the Bank’s operations and are,
therefore, not disclosed in these financial statements.

2.3 Standards, interpretations and amendments to published accounting and reporting standards that are not yet effective:
2.3.1 The following new standards and interpretations of and amendments to existing accounting standards will be effective from the dates
mentioned below against the respective standard, interpretation or amendment:
Effective date (annual periods

Standard, Interpretations or Amendments
beginning on or after)
- IFRS 16 - Leases 01-Jan-19

- IFRS 9 - Financial Instruments: Classification and Measurement 01-Jan-20
IFRS 16 replaces existing guidance on accounting for leases, including IAS 17 ‘Leases’, IFRIC 4 ‘Determining whether an arrangement
contains a Lease’, SIC-15 ‘Operating Leases- Incentive and SIC-27 ‘Evaluating the Substance of Transactions Involving the Legal Form
of a Lease’. IFRS 16 introduces a single, on balance sheet lease accounting model for lessees. A lessee recognizes “a right to use asset”
representing its right to use the underlying asset and a lease liability representing its obligations to make lease payments. There are
recognition exemptions for short-term leases and leases of low-value items. Lessor accounting remains similar to the current standard
i.e. lessors continue to classify leases as finance or operating leases. On adoption of IFRS 16, the Bank shall recognize a ‘right to use
asset’ with a corresponding liability for lease payments. The Bank is in the process of assessing the full impact of this standard.
IFRS 9: ‘Financial Instruments’ addresses recognition, classification, measurement and derecognition of financial assets and financial
liabilities. The standard has also introduced a new impairment model for financial assets which requires recognition of impairment charge
based on an ‘Expected Credit Losses’ (ECL) approach rather than the ‘incurred credit losses’ approach. The ECL has impact on all
assets of the Bank which are exposed to credit risk. The Bank is in the process of assessing the full impact of this standard.
The SBP vide its Letter no. BPRD/ RPD / 2018-7837 dated 10 April 2018 reqiured all Banks to conduct an impact and readiness
assessment of the new standard based on the financial statements for the year ended 31 December 2017. The Bank has carried out an
impact and readiness assessment exercise as per the above directive. The readiness and impact assessment exercise highlighted certain
systems, policies, process and other gaps. The Bank has also identified additional provisioning requirements based on the requirement
of the readiness and impact assessment exercise. The exact impact of additional provisioning requirement will be determined after
implementation of certain gaps and the Bank is in the process of assessing the full impact of this standard.
2.3.2 There are certain new and amended standards and interpretations that are mandatory for the Bank’s accounting periods beginning on
or after 01 January 2019 but are considered not to be relevant or will not have any significant effect on the Bank’s operations and are
therefore not detailed in these financial statements.
3 BASIS OF MEASUREMENT
3.1 Accounting convention
These financial statements have been prepared under the historical cost convention, except that certain operating fixed assets and non-
banking assets acquired in satisfaction of claims are stated at revalued amounts less accumulated depreciation, certain investments and
commitments in respect of forward exchange contracts have been marked to market and are carried at fair values and staff retirement
benefits are carried at present value.
3.2 Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the Bank
operates. These financial statements are presented in Pakistani Rupee which is the Bank’s functional and presentation currency.
3.3 Critical accounting estimates and judgements
The preparation of the financial statements in conformity with the accounting and reporting standards as applicable in Pakistan, requires
the management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities and income
and expenses. It also requires management to exercise judgement in application of its accounting policies. The estimates and associated
assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances.
These estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects
both current and future periods.

3.4 Significant accounting estimates
Significant accounting estimates and areas where judgements were made by the management in the application of accounting policies
are as follows:
i) classification and provisioning against investments (notes 4.5 and 8);

ii) classification and provisioning against loans and advances (notes 4.6 and 9);
iii) current and deferred taxation (notes 4.14, 18, 22.3.1, 22.3.3 and 32);
iv) accounting for defined benefit plan (notes 4.11 and 39);
v) depreciation, amortisation methods, useful lives and revaluation of fixed assets, leased assets and intangibles (notes 4.7.1, 4.7.2,
4.8, 10 and 11);
vi) ijarah assets (note 4.6)
vii) provisions and contingent assets and liabilities ( note 4.16 and 22 )
viii) impairment of assets (note 4.15); and
ix) Workers Welfare Fund (note 29).
During the year, the Bank has changed its estimate of the useful lives of certain fixed assets. The impact of this change is disclosed in
note 3.5 to these financial statements.
3.5 Change in accounting estimate during the year
During the current year, the management of the Bank has revised its estimate of the useful lives of building on leasehold and freehold
land and cell phones. The management has decreased the depreciation rates from 5% per annum to 2.5% per annum in case of
building on leasehold and freehold land whereas in case of cell phones the management has revised the depreciation rate of 20% per
annum to 33.33% per annum. The revision has been made after taking into account the expected pattern of recovery of economic
benefits associated with the use of these assets. The revision has been accounted for as a change in accounting estimate as defined in
International Accounting Standard 8, “Accounting Policies, Changes in Accounting Estimate and Errors’. Had the revision in useful lives
in respect of building on leasehold and freehold land and cell phones not been made depreciation expense for the year would have been
higher by Rs. 263.612 million and consequently the profit before tax would have been lower by the same amount.
4 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been
consistently applied to all the years presented except for change mentioned in note 4.1 below.
4.1 Change in accounting policy - surplus / (deficit) on revaluation of fixed assets
The Companies Ordinance, 1984 was repealed through the enactment of the Companies Act, 2017. However, as directed by SECP vide
Circular Number 23 dated 4 October, 2017, the financial reporting requirements of the Companies Act, 2017 were only made applicable
for reporting periods starting from 1 January, 2018.
As a result of enactment of Companies Act, 2017, the Bank has changed its policy for accounting deficit arising on revaluation of
fixed assets. The Bank’s previous accounting policy (as described in Note 5.5 of the annual financial statements for the year ended
31 December 2017), in accordance with the repealed Companies Ordinance, 1984, required that a deficit arising on revaluation of a
particular property was to be adjusted against the total balance in the surplus account or, if no surplus existed, was to be charged to
the profit and loss account as an impairment of the asset. The Companies Act, 2017 removed the specific provisions allowing the above
treatment. A deficit arising on revaluation of a particular property in case no surplus existed against the property is now to be accounted
for in accordance with IFRS, which require that such deficit is to be taken to the profit and loss account as an impairment.
The effect of this change in accounting policy, which is applied with retrospective application is as follows:

As at 31 As at 31
December December
2017 2016
Impact on Statement of Financial Position -------- (Rupees in ‘000) --------
Increase in surplus on revaluation of assets - gross 43,513 65,035

Less: Tax effect on revaluation (11,303) (16,232)
Increase in surplus on revaluation of assets - net of tax 32,210 48,803
Decrease in unappropriated profit - net of tax (32,210) (48,803)
For the year

ended
31 December
2017
(Rupees in ‘000)
Impact on Profit and Loss Account
(Reversals) / Provisions and write offs - net 16,593
Profit after taxation 16,593
Earnings per share - basic and diluted 0.015
Impact on Statement of Comprehensive Income 16,593
Impact on Cash Flow Statement

Profit before taxation 16,593
(Reversals) / Provisions and write offs - net 16,593
4.2 The State Bank of Pakistan (SBP) through its BPRD Circular No. 02 of 2018 dated 25 January 2018 has amended the format of annual
financial statements of banks. All banks are directed to prepare their annual financial statements on the revised format effective from
the accounting year ending 31 December 2018. Accordingly, the Bank has prepared these financial statements on the new format
prescribed by the State Bank of Pakistan. The adoption of new format contains recognition requirements, reclassification of comparative
information and additional disclosures and accordingly a third statement of financial position as at the beginning of the preceding period
(i.e. 31 December 2016) has been presented in accordance with the requirements of International Accounting Standard 1 – Presentation
of Financial Statements. The amended format also introduced certain new disclosures and has resulted mainly in following significant
changes:
- Acceptances amounting to Rs. 4,489.160 million (2017: Rs. 3,126.784 million, 2016: Rs. 3,299.085 million) which were previously
shown as part of contingencies and commitments are now recognised on balance sheet both as assets and liabilities. They are
included in other assets (note 12) and other liabilities (note 19);
- Surplus on revaluation of assets amounting to Rs. 542.638 million as at 31 December 2018 (2017: Rs. 2,095.009 million, 2016:
Rs. 2,393.260 million) which was previously shown below equity has now been included as part of equity (note 21);
- Intangible assets (note 11) amounting to Rs. 454.536 million (2017: Rs. 116.787 million, 2016: Rs. 202.302 million) which were
previously shown as part of fixed assets (note 10) are now shown separately on the statement of financial position;
- Cost of foreign currency swaps against foreign currency deposits / borrowings (note 24) amounting to Rs. 242.440 million (2017:
Rs. 186.816 million) which was previously shown as part of foreign exchange income / (loss) [ shown seperately on the face of
profit and loss account ] has now been shown as part of mark-up / return / profit / interest expense in the statement of profit and
loss account;
- Uncliamed dividends amounting to Rs. 55.079 million (2017: Rs. 44.354 million, 2016: Rs. 31.871 million ) have been excluded
from deposits and other accounts (note 16) and reclassified to other liabilities (note 19); and

- Provision / (reversal of provision) against advances, investments and bad debts written off directly amounting to Rs. (85.749) million
(2017: Rs. 63.247 million), Rs. 0.145 million (2017: Rs. 3.168 million) and Nil (2017: Rs. 0.032 million) which were previously shown
separately in the profit and loss account have now been shown under “(Reversals) / provisions and write offs - net” under note 31
to these financial statements.
4.3 Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement represent cash in hand and balances with treasury banks, balances
with other banks in current and deposit accounts, national prize bonds, if any, and overdrawn nostro accounts.
4.4 Lendings to / borrowings from financial and other institutions
The Bank enters into repurchase agreements (repo) and reverse repurchase agreements (reverse repo) at contracted rates for a specified
period of time. These are recorded as under:
(a) Sale of securities under repurchase agreements
Securities sold subject to a repurchase agreement (repo) are retained in the financial statements as investments and the counter party
liability is included in borrowings. The differential in sale and repurchase value is recognised over the period of the contract and recorded
as an expense.
(b) Purchase of securities under resale agreements
Securities purchased under agreement to resell (reverse repo) are included in lendings to financial institutions. The underlying security
is not recognised as a separate asset in the financial statements. The difference between the contracted price and resale price is
recognised over the period of the contract and recorded as income.
(c) Lending under margin trading system
Securities purchased under margin financing are recorded as lendings to financial institutions at the fair value of the consideration given.
All margin financing transactions are accounted for on the transaction date. Income on margin financing is accrued over the period of
the contract.
(d) Call lendings / placements
Call lendings / placements with financial institutions are stated net of provision. Return on such lending is accrued to the profit and loss
account on a time proportion basis except for mark-up on impaired / delinquent lendings, which is recognized on receipt basis.
(e) Borrowings
These are recorded at the proceeds received. Mark-up on such borrowings is charged on a time proportion basis to the profit and loss
account over the period of borrowings.
(f) Bai Muajjal
Bai Muajjal transactions are reported as part of lendings to financial institutions, except for transactions with the Government of Pakistan
through SBP, which are reported as part of investments. In the case of Bai Muajjal transactions, the Bank sells shariah compliant
instruments on credit to customers. The credit price is agreed at the time of sale and such proceeds are received at the end of the credit
period. The difference between the deferred payment amount receivable and carrying value at the time of sale is accrued and recorded
as income over the life of the transaction.
4.5 Investments
The Bank classifies its investments as follows:

(a) Held for trading
These represent securities, which are either acquired for the purpose of generating profit from short-term fluctuations in market prices,
interest rates or dealer’s margin or are securities included in the portfolio in which a pattern of short-term profit making exists.
(b) Held to maturity
These are securities with fixed or determinable payments and maturity, which the Bank has the positive intent and ability to hold till
maturity.
(c) Available for sale
These are investments, other than those in subsidiaries and associates, if any, that do not fall under the held for trading or held to maturity
categories.
Investments other than those categorised as held for trading are initially recognised at fair value which includes transaction costs
associated with the investment. Investments categorised as held for trading are initially recognised at fair value, and transaction costs
are expensed in the profit and loss account.
All purchases and sales of investments that require delivery within the time frame established by regulations or market conventions are
recognised at the trade date. Trade date is the date on which the Bank commits to purchase or sell the investment.
Premium or discount on acquisition of investments is amortised through the profit and loss account over the remaining period till maturity
using effective interest method.
In accordance with the requirements of the State Bank of Pakistan, quoted securities, other than those categorised as ‘held to maturity’,
are subsequently remeasured at market values. Surplus / (deficit) arising on revaluation of quoted securities categorised as ‘available for
sale’, is taken to ‘statement of changes in equity’. Surplus / (deficit) arising on revaluation of quoted securities which are categorised as
‘held for trading’, is taken to the profit and loss account. Cost of investment is determined on a weighted average basis.
In accordance with the BSD circular No. 14 dated 24 September 2004 issued by SBP, investments categorised as ‘held to maturity’ are
carried at amortised cost less impairment, if any.
Unquoted equity securities, excluding investments in subsidiaries and associates, if any, are valued at the lower of cost and break-up
value. Break-up value of unquoted equity securities is calculated with reference to the net assets of the investee company as per the
latest available audited financial statements.
Gain / loss on sale of investments is credited / charged to the profit and loss account.
4.6 Advances
Advances are stated net of specific and general provisions. Specific provision for advances are made in accordance with the requirements
of the Prudential Regulations and other directives issued by SBP and charged to the profit and loss account. General provision against
consumer and small enterprises financings portfolio is maintained as per the requirements of the Prudential Regulations issued by SBP.
Advances are written off when there is no realistic prospect of recovery. In addition to conventional products, the Bank also offers various
Islamic financing products which mainly include the following:
Murabaha
Murabaha financings are reflected as receivables at the invoiced amount. Actual sales and purchases are not reflected, as the goods
are purchased by the customer as an agent of the Bank and all documents relating to purchase are in the customer’s name. However,
the profit on that sale revenue not due for payment is deferred and is recognised on a time proportion basis. Funds disbursed under
Murabaha financing arrangements for purchase of goods are recorded as “Advance Against Murabaha” in advances.

Salam
Salam financings are reflected as receivables at the invoiced amount. Profit not due for payment is deferred and is recognised on a time
proportion basis. Funds disbursed under Salam financing arrangements for purchase of goods are recorded as “Advance Against Salam”
in advances.
Diminishing Musharaka
In Diminishing Musharakah financing, the Bank enters into Musharakah based on Shirkat-ul-milk for financing an agreed share of fixed
asset (e.g. house, land, plant or machinery) with its customers. The customers pay periodic profit as per the agreement for the utilisation
of the Bank’s Musharakah share and also periodically purchase the Bank’s share over the tenure of the transaction.
Istisna
In Istisna financing, the Bank places an order to purchase some specific goods / commodities from its customers to be delivered to the
Bank within an agreed time. The goods are then sold by the customer on behalf of the bank and the amount hence financed alongwith
profit is paid back to the Bank.
Ijarah assets
Ijarah assets are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is charged from the date of
recognition of ijarah assets on a straight line basis over the period of Ijarah. Impairment of Ijarah assets is determined on the same basis
as that of operating fixed assets.
Ijarah income is recognised in income on an accrual basis as and when the rental becomes due. Impairment of Ijarah rental is determined
in accordance with the requirements of the Prudential Regulations and other directives issued by SBP and charged to the profit and loss
account.
4.7 Fixed assets and depreciation
4.7.1 Tangible assets - owned
Fixed assets (other than land and building) are stated at cost less accumulated depreciation and impairment losses, if any. Building is
carried at revalued amount less any accumulated depreciation and subsequent impairment losses, if any. Land is carried at revalued
amount less subsequent impairment losses, if any.
Depreciation on all fixed assets (excluding land which is not depreciated) is charged using the straight line method in accordance with
the rates specified in note 10.2 to the financial statements after taking into account residual values, if significant. The residual values and
useful lives are reviewed and adjusted, if appropriate, at each reporting date. Depreciation on additions is charged from the month the
assets are available for use while in the case of assets disposed of, it is charged upto the date of disposal.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably. All other
repair and maintenance expenditure are charged to the profit and loss account as and when incurred.
Land and building are revalued by professionally qualified valuers with sufficient regularity to ensure that the net carrying amount does
not differ materially from their fair value.
Surplus arising on revaluation is credited to the surplus on revaluation of fixed assets account. A deficit arising on revaluation of a
particular property in case no surplus existed against the property is accounted for in accordance with IFRS, which requires that such
deficit is to be taken to the profit and loss account as an impairment. Surplus on revaluation of fixed assets to the extent of incremental
depreciation charged on the related assets is transferred to unappropriated profit.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.
Gains and losses on disposal of fixed assets are credited / charged to the profit and loss account currently, except that the related surplus
on revaluation of fixed assets (net of deferred taxation) is transferred directly to unappropriated profit.

4.7.2 Tangible assets - leased
Leases are classified as finance lease wherever the terms of the lease transfer substantially all the risks and rewards of ownership to
the lessee. All other leases are classified as operating lease. Lease payments, if any, under operating lease are charged to income on a
straight line basis over the lease term.
Assets held under finance lease, if any, are stated at lower of fair value or present value of minimum lease payments at inception less
accumulated depreciation. The outstanding obligations under the lease agreements are shown as a liability net of finance charges
allocable to future periods.
The finance charges are allocated to accounting periods in a manner so as to provide a constant periodic rate of return on the outstanding
liability.
Depreciation on assets held under finance lease is charged in a manner consistent with that for depreciable assets which are owned by
the Bank.
4.7.3 Capital work in progress
Capital work-in-progress is stated at cost less accumulated impairment losses, if any. All expenditure connected with specific assets
incurred during installation and construction / development period are carried under this head. These are transferred to specific assets
as and when assets become available for use.
4.8 Intangible assets and amortisation
Intangible assets having a definite useful lives are stated at cost less accumulated amortisation and impairment losses, if any. Intangible
assets are amortised from the month, when these assets are available for use, using the straight line method, whereby the cost of the
intangible asset is amortised on the basis of the estimated useful life over which economic benefits are expected to flow to the Bank. The
residual values, useful lives and amortisation method are reviewed and adjusted, if appropriate, at each reporting date.
Subsequent costs are included in the asset’s carrying amounts or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Bank and the cost of the item can be measured reliably.
Intangible assets having an indefinite useful life are stated at acquisition cost less accumulated impairment losses, if any.
Gains and losses on disposals, if any, are taken to the profit and loss account in the period in which they arise.
4.9 Borrowings / deposits and their cost
Borrowings / deposits are recorded at the proceeds received. Borrowing / deposit costs are recognised as an expense in the period
in which these are incurred to the extent that they are not directly attributable to the acquisition of or construction of qualifying assets.
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset (one that takes a
substantial period of time to get ready for use or sale) are capitalised as part of the cost of the asset.
4.9.1 Deposits - Islamic Banking
Islamic Banking deposits are generated on the basis of two modes i.e. Qard and Modaraba. Deposits taken on Qard basis are classifed
as ‘Current Account’ and Deposits generated on Modaraba basis are classified as ‘Savings Account’ and ‘Fixed Deposit Accounts’.
No profit or loss is passed on to current account depositors. Profits realised in investment pools are distributed in pre-agreed profit
sharing ratio. Rab-ul-Maal (customer) share is distributed among depositors according to weightages assigned at the inception of profit
calculation period. Mudarib (Bank) can distribute its share of profit to Rab-ul-Maal upto a specifed percentage of its profit. Profits are
distributed from the pool so the depositors (remunerative) only bear the risk of assets in the pool during the profit calculation period.
Asset pools are created at the Bank’s discretion and the Bank can add, amend, transfer an asset to any other pool in the interests of the
deposit holders. In case of loss in a pool during the profit calculation period, the loss is distributed among the depositors (remunerative)
according to their ratio of Investments.
4.10 Sub-ordinated debt
Sub-ordinated debt is initially recorded at the amount of proceeds received. Mark-up on sub-ordinated debt is charged to the profit and
loss account over the period on an accrual basis and is recognised as part of other liabilities.

4.11 Staff retirement benefits
4.11.1 Defined benefit plan
The Bank operates an approved funded gratuity scheme for its permanent employees. The liability recognised in the statement of
financial position in respect of defined benefit gratuity scheme, is the present value of the defined benefit obligation at the statement of
financial position date less the fair value of plan assets. Contributions to the fund are made on the basis of actuarial recommendations
using the Projected Unit Credit Method. Valuations are conducted by an independent actuary with the last valuation conducted on 31
December 2018.
Amounts arising as a result of “remeasurements”, representing the actuarial gains and losses and the difference between the actual
investment returns and the return implied by the net interest cost are recognised in the Statement of Financial Position immediately, with
a charge or credit to “Other Comprehensive Income” in the periods in which they occur. Remeasurement gains / (losses) are not recycled
to profit and loss account in subsequent periods.
Gratuity is payable to staff on completion of the prescribed qualifying period of service under the scheme.
4.11.2 Defined contribution plan
The Bank operates an approved funded provident fund scheme for all its permanent employees. Equal monthly contributions are made,
both by the Bank and its employees, to the Fund at the rate of 8.33% of basic salaries of the employees.
4.12 Foreign currencies
4.12.1 Foreign currency transactions
Foreign currency transactions are translated into rupees at the exchange rates prevailing on the date of the transaction. Monetary assets
and liabilities in the foreign currencies are expressed in rupee terms at the exchange rates ruling on the reporting date. Outstanding
forward foreign exchange contracts and foreign bills purchased are valued at the forward rates applicable to the respective maturities.
Exchange gains and losses are included in the profit and loss account.
4.12.2 Translation gains and losses
Translation gains and losses are included in the profit and loss account.
4.12.3 Commitments
Commitments for outstanding forward foreign exchange contracts are disclosed in the financial statements at the contracted rates.
Contingent liabilities / commitments for letters of credit and letters of guarantee denominated in foreign currencies are expressed in rupee
terms at the rates of exchange ruling on the reporting date.
4.13 Revenue recognition
- Mark-up income / interest on advances and returns on investments are recognised on a time proportion basis using the effective
yield on the arrangement / instrument except that mark-up / return on non-performing advances and investments is recognised on
receipt basis. Interest / return / mark-up on rescheduled / restructured advances and investments is recognised as permitted by
SBP except where, in the opinion of the management, it would not be prudent to do so.
- Fee, commission and brokerage income is recognised upon performance of services.
- Dividend income from investments is recognised when the Bank’s right to receive the dividend is established.
- Premium or discount on acquisition of investments is amortised using effective yield method and taken to profit and loss account.
- Gains and losses on disposal of investments and certain operating fixed assets are taken to the profit and loss account in the year
in which they arise.
- Profits on Bai Muajjal lendings are recognised on a straight line basis.

4.14 Taxation
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the profit and loss account except to the
extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
4.14.1 Current
Provision for current taxation is based on the taxable income at the current rates of taxation after taking into account available tax credit
and rebates. The charge for current tax also includes adjustments, where considered necessary relating to prior years, which arises from
assessments / developments made during the year.
4.14.2 Deferred
Deferred tax is recognised using the balance sheet liability method on all temporary differences between the carrying amounts of assets
and liabilities used for financial reporting purposes and amounts used for taxation purposes. Deferred tax is calculated at the rates
that are expected to apply to the period when the differences are expected to reverse based on tax rates that have been enacted or
substantively enacted at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset
can be utilised.
The carrying amount of deferred tax asset is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of the deferred tax asset to be utilised.
The Bank also recognises deferred tax asset / liability on deficit / surplus on revaluation of operating fixed assets and securities which is
adjusted against the related deficit / surplus in accordance with the requirements of International Accounting Standard (IAS) 12, ‘Income
Taxes’.
4.15 Impairment
Impairment on investments
Impairment loss in respect of investments categorised as available for sale (except term finance certificates and sukuk) and held to
maturity is recognised based on management’s assessment of objective evidence of impairment as a result of one or more events that
may have an impact on the estimated future cash flows of the investments. A significant or prolonged decline in the fair value of a listed
equity investment below its cost is also considered an objective evidence of impairment. Provision for diminution in the value of term
finance certificates and sukuks is made as per the requirements of the Prudential Regulations issued by SBP. In case of impairment of
available for sale securities, the cumulative loss that has been recognised in surplus / deficit on revaluation of securities in the statement
of changes in equity is transferred to the profit and loss account. For investments categorised as held to maturity, the impairment loss
is recognised in the profit and loss account.
Impairment on non financial assets
Impairment loss is taken to the profit and loss account for all non financial assets. An impairment loss is reversed (except for impairment
loss relating to goodwill), if there has been a change in the estimate used to determine the recoverable amount. Such reversals are only
made to the extent that the asset’s carrying amount does not exceed the amount that would have been determined if no impairment
loss had been recognised.
4.16 Provisions and contingent assets and liabilities
Provisions are recognised when the Bank has a legal or constructive obligation as a result of past events, it is probable that an outflow
of resources will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each
reporting date and are adjusted to reflect the current best estimate.
Contingent assets are not recognised and are also not disclosed unless an inflow of economic benefits is probable. Contingent liabilities
are not recognised but disclosed unless the probability of an outflow of resources embodying economic benefits are remote.
4.17 Provision for guarantee claims and other off balance sheet obligations
Provision for guarantee claims and other off-balance sheet obligations are recognised when intimated and where reasonable certainty
exists for the Bank to settle the obligation. Charge to profit and loss account is stated net of expected recoveries.

4.18 Acceptances
Acceptances comprise undertakings by the Bank to pay bills of exchange drawn on customers. The Bank expects most acceptances
to be simultaneously settled with the reimbursement from the customers. As explained in note 4.2, acceptances are accounted for as
on-balance sheet transactions and are reported in “other assets” and “other liabilities” simultaneously.
4.19 Financial instruments
4.19.1 Financial assets and liabilities
Financial instruments carried on the balance sheet include cash and balances with treasury banks, balances with other banks, lendings
to financial institutions, investments, advances, certain receivables, bills payable, borrowings from financial institutions, deposits and
other accounts, sub-ordinated debt and other payables. The particular recognition methods adopted for significant financial assets and
financial liabilities are disclosed in the individual policy statements associated with them.
4.19.2 Derivative financial instruments
Derivative financial instruments, if any, are initially recognised at fair value on the date on which a derivative contract is entered into and
are, subsequently, remeasured at fair value using appropriate valuation techniques. All derivative financial instruments are carried as
assets when fair value is positive and liability when fair value is negative. Any change in the fair value of derivative financial instruments is
taken to the profit and loss account.
4.19.3 Off-setting
Financial assets and financial liabilities are off-set and the net amount is reported in the financial statements when there exists a legally
enforceable right to set-off and the Bank intends either to settle on a net basis or to realise the assets and to settle the liabilities
simultaneously. Income and expense items of such assets and liabilities are also off-set and the net amount is reported in the financial
statements.
4.20 Basic and diluted earnings per share
The Bank presents basic and diluted earnings per share (EPS) for its shareholders. Basic EPS is calculated by dividing the profit or loss
attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. Diluted
EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary
shares outstanding for the effects of all dilutive potential ordinary shares, if any.
4.21 Dividend and appropriation to reserves
Dividend and appropriation to reserves after the reporting date, except appropriations which are required by law are recognised as liability
in the Bank’s financial statements in the year in which these are approved.
4.22 Segment reporting
A segment is a distinguishable component of the Bank that is engaged either in providing product or services (business segment), or in
providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards
that are different from those of other segments. Segments are reported as per the Bank’s functional structure and are as follows:
(a) Business segments
(i) Corporate finance
Corporate banking includes financing and services provided to corporate customers including services in connection with mergers and
acquisitions, underwriting, privatisation, securitisation, syndication, Initial Public Offers (IPOs), etc. It also includes deposits mobilized
from Corporate branches.
(ii) Trading and sales
It includes fixed income, equity, foreign exchanges, lendings and repos.

(iii) Retail banking
It includes all retail related lendings and banking services (including staff, consumer and SME financing) as well as deposits mobilized
from Retail branches.
(iv) Others
It includes the Bank’s head office related activities and other activities not specifically tagged to the segments above.
(b) Geographical segment
The operations of the Bank are currently based only in Pakistan. Therefore, geographical segment is not relevant.
4.23 Non-banking assets acquired in satisfaction of claims
Non-banking assets acquired in satisfaction of claims are initially recorded at cost. These assets are revalued at each year end date of
the statement of financial position. An increase in market value over the acquisition cost is recorded as a surplus on revaluation. A decline
in the market value is adjusted against the surplus of that asset, if any, or if no surplus exists, is charged to the profit and loss account
as an impairment. A subsequent increase in the market value of an impaired asset is reversed through the profit and loss account up to
the extent of the original impairment. All direct costs of acquiring title to the asset are charged immediately to the profit and loss account.
Depreciation on non-banking assets acquired in satisfaction of claims is charged to the profit and loss account in line with depreciation
charged on fixed assets.
These assets are generally intended for disposal. Gains and losses realised on the disposal of such assets are disclosed separately from
gains and losses realised on the disposal of these assets. If such asset is subsequently used by the Bank for its own operations, the
assets, along with any related surplus, are transferred to fixed assets.
Note 2018 2017

5 CASH AND BALANCES WITH TREASURY BANKS ---------(Rupees in ‘000)---------
In hand
Local currency 4,801,197 3,762,093
Foreign currencies 3,897,197 1,706,084
8,698,394 5,468,177
With State Bank of Pakistan in
Local currency current accounts 5.1 11,253,545 10,548,538
Foreign currency current accounts 5.2 990,087 582,452
Foreign currency deposit accounts against
foreign currency deposits mobilised 5.3 2,877,854 1,623,784
15,121,486 12,754,774
With National Bank of Pakistan in

Local currency current accounts 2,185,378 1,202,581
Prize bonds 14,421 5,724
26,019,679 19,431,256
5.1 The local currency current accounts are maintained with SBP as per the requirements of Section 36 of the State Bank of Pakistan Act,
1956. This section requires banking companies to maintain a local currency cash reserve in current accounts opened with SBP at a sum
not less than such percentage of its time and demand liabilities as may be prescribed by SBP.
5.2 This represents cash reserve account maintained with SBP at an amount equivalent to at least 5% of the Bank’s foreign currency
deposits mobilised under FE-25 scheme and carry NIL return. (2017: NIL return).
5.3 These represent special cash reserve maintained with SBP at an amount equivalent to at least 15% of the Bank’s foreign currency
deposits mobilised under FE-25 scheme and 6% special cash reserve requirement on FE-25 deposits maintained by Islamic banking
branches.

Note 2018 2017
6 BALANCES WITH OTHER BANKS ---------(Rupees in ‘000)---------
In Pakistan
In current accounts 12,022 12,115
In deposit accounts 184,908 206,419
196,930 218,534
Outside Pakistan
In current account 6.1 982,682 932,481
1,179,612 1,151,015
6.1 This includes Rs. 430.724 million (2017: Rs. 473.631 million) eligible for Automated Investment Plans. This balance is current in nature
with no return on balance. However, if balance is increased over a specified amount, it entitles the Bank to earn interest income from the
correspondent banks at agreed rates.
Note 2018 2017

7 LENDINGS TO FINANCIAL INSTITUTIONS ---------(Rupees in ‘000)---------
Repurchase agreement lendings (reverse repo) 7.2 3,921,270 985,507

Bai Muajjal receivable 7.3
- with State Bank of Pakistan - 1,365,890
- with other financial institutions - 201,290
Letters of placements - 3,950,000
3,921,270 6,502,687
7.1 Particulars of lendings
In local currency 3,921,270 6,502,687

In foreign currencies - -
3,921,270 6,502,687
7.2 Securities held as collateral against lendings to financial institutions
2018 2017
Further Further
Held by Held by
given as Total given as Total
Bank Bank
collateral collateral
----------------------------------- (Rupees in ‘000) -----------------------------------
Market Treasury Bills 1,998,324 - 1,998,324 485,507 - 485,507

Pakistan Investment Bonds 1,922,946 - 1,922,946 500,000 - 500,000
Total 3,921,270 - 3,921,270 985,507 - 985,507
7.2.1 The market value of securities held as collateral against repurchase agreement lendings amounted to Rs. 3,922.610 million (2017:
Rs. 1,025.534 million).
2018 2017
7.3 Bai Muajjal receivable ---------(Rupees in ‘000)---------
Bai Mujjal recievable

- with State Bank of Pakistan - 1,401,734
- with other financial institutions - 206,911
- 1,608,645
less: deferred income
- with State Bank of Pakistan - (35,843)
- with other financial institutions - (5,622)
- (41,465)
Bai Mujjal recievable - net - 1,567,180

8 INVESTMENTS
8.1 Investments by type:

2018 2017
Cost / Cost /
Provision for Surplus / Provision for Surplus /
amortised Carrying value amortised Carrying value
diminution (deficit) diminution (deficit)
cost cost
-------------------------------------------- (Rupees in ‘000) --------------------------------------------
Held-for-trading securities
Federal Government securities 7,225,664 - 21 7,225,685 10,525,132 - 34 10,525,166
7,225,664 - 21 7,225,685 10,525,132 - 34 10,525,166
Available-for-sale securities
Federal Government securities 130,337,353 - (1,574,373) 128,762,980 96,520,824 - 327,662 96,848,486
Shares 4,471,440 31,503 (565,970) 3,873,967 3,689,607 31,358 (109,502) 3,548,747
Non-Government debt securities 3,011,459 - 117,559 3,129,018 2,142,857 - 29,325 2,172,182
Units of mutual funds 259,267 - (49,118) 210,149 240,000 - (27,529) 212,471
Commerical Papers - - - - 227,877 - - 227,877
138,079,519 31,503 (2,071,902) 135,976,114 102,821,165 31,358 219,956 103,009,763
Held-to-maturity securities
Federal Government securities 3,306,438 - - 3,306,438 3,337,333 - - 3,337,333
Non Government debt securities 223,390 86,094 - 137,296 642,348 86,094 - 556,254
3,529,828 86,094 - 3,443,734 3,979,681 86,094 - 3,893,587
Total investments 148,835,011 117,597 (2,071,881) 146,645,533 117,325,978 117,452 219,990 117,428,516
8.2 Investments by segments:
2018 2017
Cost / Cost /
Provision for Surplus / Carrying Provision for Surplus / Carrying
amortised amortised
diminution (deficit) value diminution (deficit) value
cost cost
-------------------------------------------- (Rupees in ‘000) --------------------------------------------
Federal Government securities:

Market Treasury Bills 96,248,954 - (5,889) 96,243,065 52,893,793 - (490) 52,893,303
Pakistan Investment Bonds 42,145,713 - (1,561,303) 40,584,410 55,480,392 - 326,170 55,806,562
Bai Muajjal from Government
of Pakistan (GoP) 2,074,788 - - 2,074,788 - - - -
Ijarah sukuks 400,000 - (7,160) 392,840 2,009,104 - 2,016 2,011,120
140,869,455 - (1,574,352) 139,295,103 110,383,289 - 327,696 110,710,985
Units of mutual funds 259,267 - (49,118) 210,149 240,000 - (27,529) 212,471
Shares:
Listed companies 4,454,640 25,803 (565,970) 3,862,867 3,672,807 25,658 (109,502) 3,537,647
Un-listed companies 16,800 5,700 - 11,100 16,800 5,700 - 11,100
4,471,440 31,503 (565,970) 3,873,967 3,689,607 31,358 (109,502) 3,548,747
Non-Government debt securities
Listed 622,794 16,269 4,096 610,621 579,319 16,269 10,125 573,175
Unlisted 2,612,055 69,825 113,463 2,655,693 2,433,763 69,825 19,200 2,383,138
3,234,849 86,094 117,559 3,266,314 3,013,082 86,094 29,325 2,956,313
Total investments 148,835,011 117,597 (2,071,881) 146,645,533 117,325,978 117,452 219,990 117,428,516

2018 2017
8.2.1 Investments given as collateral - market value ---------(Rupees in ‘000)---------
Market Treasury Bills 48,850,834 15,380,942

Pakistan Investment Bonds 11,518,661 22,130,966
60,369,495 37,511,908
8.3 Bai Muajjal with Government of Pakistan
Bai Muajjal investment 2,855,000 -

Less: Deferred income (780,212) -
Bai Muajjal investment - net 2,074,788
8.4 Provision for diminution in the value of investments
Opening balance 117,452 114,284

Charge for the year 145 3,168
Closing balance 117,597 117,452
8.5 Particulars of provision against debt securities
2018 2017
Category of classification Non- Non-
Performing Provision Performing Provision
Investments Investments
--------------------------- (Rupees in ‘000) ---------------------------
Loss 86,094 86,094 86,094 86,094

Total 86,094 86,094 86,094 86,094
8.6 Quality of available-for-sale securities
Details regarding quality of available-for-sale (AFS) securities are as follows:

2018 2017
Cost
---------(Rupees in ‘000)---------
Federal Government Securities - Government guaranteed
Market Treasury Bills 89,023,290 42,368,661
Bai Muajjal with Government of Pakistan (GOP) 2,074,788 -
Ijarah Sukuks 400,000 2,009,104
130,337,353 96,520,824
Shares
Listed companies
- Cable & Electric Goods 77,055 -
- Cement 464,929 618,323
- Chemical 29,805 29,805
- Commercial Banks 919,206 660,866
- Engineering 193,525 -
- Fertilizer 845,870 977,842
- Insurance 87,866 -
- Oil & Gas Exploration Companies 458,000 284,587
- Oil & Gas Marketing Companies 106,875 45,792
- Paper & Board 65,355 99,794
- Pharmaceuticals 38,407 -
- Power Generation & Distribution 567,131 235,144
- Real Estate Investment Trust 26,196 41,866
- Textile Composite 574,420 678,788
4,454,640 3,672,807

2018 2017
Unlisted companies Cost Break-up value Cost Break-up value
-----------------------------(Rupees in ‘000)-----------------------------
ISE Towers REIT Management Company Limited 11,100 42,522 11,100 36,813
DHA Cogen Limited - - - -
Pakistan Export Finance Guarantee Agency Limited 5,700 - 5,700 -
16,800 42,522 16,800 36,813
Non-Government debt securities Note 2018 2017

Cost
---------(Rupees in ‘000)---------
Listed
- Unrated 550,000 450,000
Unlisted
- AAA 1,406,250 975,000
- AA+, AA, AA- 8.10 1,023,066 675,000
- A+, A, A- 32,143 42,857
2,461,459 1,692,857
3,011,459 2,142,857
Equity securities
Listed
Agritech Limited [851,560 (2017: 851,560) shares] 29,805 29,805
Adamjee Insurance Company Limited [1,600,000 (2017: NIL) shares] 87,866 -
AGP Limited [478,000 (2017: NIL) shares] 38,407 -
Aisha Steel Mills Limited [7,500,000 (2017: NIL) shares] 105,486 -
Allied Bank Limited [NIL (2017: 2,851,000) shares] - 272,727
Altern Energy Limited [4,750,500 (2017: 3,311,500) shares] 192,029 136,258
Amreli Steels Limited [1,303,500 (2017: NIL) shares] 88,039 -
Askari Bank Limited [8,548,500 (2017: 5,000,000) shares] 201,280 115,439
Bank Alfalah Limited [1,000,000 (2017: NIL) shares] 48,057 -
Cherat Cement Company Limited [2,976,000 (2017: 2,774,200) shares] 279,856 330,788
Cherat Packaging Limited [NIL (2017: 200,000) shares] - 40,513
Dawood Lawrencepur Limited [282,000 (2017:282,000) shares] 53,863 53,863
Dolmen City REIT [2,150,000 (2017: 3,750,000) shares] 26,196 41,866
Engro Corporation Limited [NIL (2017: 920,000) shares] - 271,719
Engro Fertilizers Limited [8,000,000 (2017: 6,040,000) shares] 547,971 401,360
Fatima Fertilizer Company Limited [NIL (2017: 5,000,000) shares] - 159,942
Fauji Fertilizer Bin Qasim Limited [ 7,450,000 (2017: 3,500,000) shares] 297,899 144,821
Habib Metropolitan Bank Limited [NIL (2017:413,500) shares] - 13,370
Hub Power Company Limited [3,846,000 (2017: 914,500) shares] 8.11 375,102 98,886
Kohat Cement Company Limited [NIL (2017: 352,700) shares] - 47,990
Kohinoor Textile Mills Limited [1,100,000 (2017: NIL) shares] 49,163 -
Lucky Cement Limited [305,050 (2017: 412,500) shares] 185,073 239,544
MCB Bank Limited [1,600,000 (2017: 1,052,500) shares] 351,198 242,551
Nishat Chunian Limited [5,500,000 (2017: 3,682,000) shares] 301,115 206,826
Nishat Mills Limited [1,358,600 (2017: 3,370,000) shares] 170,278 418,098
Oil and Gas Development Company Limited [3,000,000 (2017: 1,875,000) shares] 458,000 284,587
Packages Limited [133,000 (2017: 99,450) shares] 65,355 59,282
Pak Elektron Limited [2,312,000 (2017: NIL) shares] 77,055 -
Pakistan State Oil Company Limited [NIL (2017: 6,000) shares] - 1,670
Sui Southern Gas Company Limited [NIL (2017: 1,200,000) shares] - 44,122
Sui Northern Gas Company Limited [1,028,000 (2017: NIL) shares] 106,875 -
United Bank Limited [2,000,000 (2017: 100,000) shares] 318,672 16,780
4,454,640 3,672,807

Note 2018 2017
Cost
---------(Rupees in ‘000)---------
Unlisted
DHA Cogen Limited [5,853,822 (2017: 5,853,822) shares] 8.12 - -
ISE Towers REIT Management Company Limited [3,034,603
(2017: 3,034,603) shares ] 8.13 11,100 11,100
Pakistan Export Finance Guarantee Agency Limited [569,958
(2017: 569,958) shares] 8.14 5,700 5,700
16,800 16,800
Cost
Note 2018 2017
---------(Rupees in ‘000)---------
8.7 Particulars relating to held-to-maturity securities are as follows:
Federal Government Securities - Government guaranteed

Non Government debt Securities
Listed
- AA+, AA, AA- 56,525 113,050
- Unrated 16,269 16,269
72,794 129,319
Unlisted
- AA+, AA, AA- - 333,333
- A+, A, A- 80,771 109,871
- Unrated 8.15 69,825 69,825
150,596 513,029
8.7.1 The market value of securities classified as held-to-maturity as at 31 December 2018 amounted to Rs. 3,189.450 million (31 December
2017 : Rs. 3,876.791 million).
8.8 Investments include certain approved government securities which are held by the Bank to comply with the Statutory Liquidity
Requirement determined on the basis of the Bank’s demand and time liabilities as set out under section 29 of the Banking Companies
Ordinance, 1962.
8.9 Federal Government Securities include Pakistan Investment Bonds having book value of Rs. 30.700 million (2017: Rs. 30.700 million)
pledged with the State Bank of Pakistan and National Bank of Pakistan to facilitate T. T. discounting facility for the branches of the Bank.
Market Treasury Bills and Pakistan Investment Bonds under Federal Government Securities, are eligible for discounting with the State
Bank of Pakistan.
8.10 These represent partial payments made by the Bank for subscription of privately placed unlisted Term Finance Certificates of Pakistan
Services Limited. The Term Finance Certificates against these subscriptions were not issued by 31 December 2018.
8.11 As at 31 December 2018, 800,000 shares of Hub Power Company Limited have been pledged by the Bank with National Clearing
Company of Pakistan Limited as security against its exposure margins in terms of Circular No. 11 dated 23 October 2007 issued by the
Securities and Exchange Commission of Pakistan.
8.12 DHA Cogen Limited shares were received under the enforcement of a pledge of third party shares by the consortium banks. These
shares were recorded at NIL value as the break-up value of these shares as per the latest available audited financial statements is Rs.
(29.10).
8.13 This denotes shares of ISE Towers REIT Management Company Limited, [formerly Islamabad Stock Exchange Limited (ISEL)], acquired
in pursuance of corporatisation and demutualisation of ISEL as a public company limited by shares.

8.14 This investment is fully provided. As per the “shares subscription agreement”, it can only be sold to an existing investor.
8.15 This included 4,000 certificates of WAPDA. These certificates were purchased by the Bank on 29 September 2009 through a market
based transaction for a cash consideration of Rs. 19.8 million having a face value of Rs. 20 million. These certificates were available in
the seller’s CDC account and on completion of the transaction were transferred to the Bank’s CDC account. A periodic Ijarah rental was
due on 22 October 2009 which was not paid to the Bank on the plea that certain discrepancy in the Central Depository Register was
the reason for non-payment.
The Bank through a legal notice clarified the position that it had purchased the aforesaid sukuk certificates from the market for a valuable
consideration when these sukuk certificates were already entered in the CDC’s Register of seller’s account. However, the Bank has made
full provision against these certificates. The Bank has filed a recovery suit which is pending before the Honourable High Court of Sindh,
Karachi.
9 ADVANCES
Performing Non-performing Total
2018 2017 2018 2017 2018 2017
--------------------------------------- (Rupees in ‘000) ---------------------------------------

Loans, cash credits, running
finances, etc. 170,877,658 151,241,997 11,278,991 10,212,127 182,156,649 161,454,124
Islamic financing and related assets 8,008,498 4,582,807 69,059 29,560 8,077,557 4,612,367
Bills discounted and purchased 4,587,917 6,702,957 9,082 2,982 4,596,999 6,705,939
Advances - gross 183,474,073 162,527,761 11,357,132 10,244,669 194,831,205 172,772,430
Provision against advances

- Specific - - (8,314,484) (8,440,840) (8,314,484) (8,440,840)
- General (41,538) (38,675) - - (41,538) (38,675)
(41,538) (38,675) (8,314,484) (8,440,840) (8,356,022) (8,479,515)
Advances - net of provision 183,432,535 162,489,086 3,042,648 1,803,829 186,475,183 164,292,915
2018 2017
9.1 Particulars of advances (Gross) --------Rupees in ‘000--------

In foreign currencies 3,651,157 5,655,115
194,831,205 172,772,430
9.2 Advances include Rs.11,357.132 million (2017: Rs. 10,244.669 million) which have been placed under non-performing status as
detailed below:
Note 2018 2017
Category of Classification Non- Non-

performing Provision performing Provision
loans loans
----------------------- Rupees in ‘000 -----------------------
Other Assets Especially Mentioned 9.2.1 45,674 1,418 20,595 411

Substandard 550,195 27,568 193,956 24,557
Doubtful 1,672,610 436,068 592,392 256,746
Loss 9,088,653 7,849,430 9,437,726 8,159,126
11,357,132 8,314,484 10,244,669 8,440,840

9.2.1 The ‘Other Assets Especially Mentioned’ category pertains to agriculture finance, small enterprise finance and consumer finance
amounting to Rs. 14.456 million (31 December 2017: Rs. 14.161 million), Rs.14.179 million (31 December 2017: Rs. 6.434 million) and
Rs. 17.039 million (31 December 2017: Rs. Nil) respectively.
9.3 Particulars of provision against advances
Note 2018 2017

Specific General Total Specific General Total
---------------------------------------- (Rupees in ‘000) ----------------------------------------
Opening balance 8,440,840 38,675 8,479,515 8,395,931 51,340 8,447,271
Charge for the year 899,550 2,863 902,413 771,168 9,335 780,503
Reversals (988,162) - (988,162) (695,256) (22,000) (717,256)
(88,612) 2,863 (85,749) 75,912 (12,665) 63,247
Amounts written off 9.4 (37,744) - (37,744) (56,975) - (56,975)
Transfers - - - 25,972 - 25,972
Closing balance 8,314,484 41,538 8,356,022 8,440,840 38,675 8,479,515
9.3.1 The general provision against consumer financing is required to be maintained at varying percentages based on the non-performing loan
ratio present in the portfolio. These percentages range from 1% to 2.5% for secured and 4% to 7% for unsecured portfolio.
9.3.2 The Bank has maintained general provision against housing finance portfolio at the rate of 0.50% of the performing portfolio. The State
Bank of Pakistan vide its circular no. 9 of 2017 dated 22 December 2017 abolished the requirement of maintaining general reserve of 1%
against secured Small Enterprise (SE) portfolio, while general reserve to be maintained against unsecured SE portfolio has been reduced
from 2% to 1%. Currently, the Bank does not have any unsecured SE portfolio.
9.3.3 Particulars of provision against advances
2018 2017
Specific General Total Specific General Total
---------------------------------------- (Rupees in ‘000) ----------------------------------------
In local currency 8,314,484 41,538 8,356,022 8,440,840 38,675 8,479,515

In foreign currency - - - - - -
Total 8,314,484 41,538 8,356,022 8,440,840 38,675 8,479,515
9.3.4 The Bank has availed the benefit of forced sales value of pledged stocks, mortgaged residential and commercial properties held as
collateral against non-performing advances as allowed under the Prudential Regulations issued by the State Bank of Pakistan. Had the
benefit not been taken by the Bank, the specific provision against non-performing advances would have been higher by Rs.1,703.268
million (2017: Rs. 1,276.688 million. The additional profit arising from availing this benefit - net of the tax amounts to Rs. 1,107.124
million (2017: Rs. 829.847 million). This profit is not available for distribution either as cash or stock dividend to shareholders and bonus
to employees.
9.3.5 The SBP has granted relaxation in provisioning requirements in respect of exposures in Dewan Mushtaq Group (DMG). Had this relaxation
not been available, provision against loans and advances would have been higher by Rs 44.930 million (2017: Rs 44.930 million).
9.3.6 The Bank has made provision against its non-performing portfolio as per the category of classification of the loans. However, the Bank
still holds enforceable collateral realisable through litigation. This enforceable collateral includes mortage charge etc. against various
tangible assets of the borrower including land, building and machinery, stock in trade, etc.
Note 2018 2017

------ Rupees in ‘000 ------
9.4 Particulars of write offs:
9.4.1 Against provisions 9.3 37,744 56,975

Directly charged to profit & loss account - 32
37,744 57,007
9.4.2 Write offs of Rs. 500,000 and above 9.5 37,605 56,955
Write offs of below Rs. 500,000 139 52
37,744 57,007

9.5 Details of loan write off of Rs. 500,000/- and above
In terms of sub-section (3) of Section 33A of the Banking Companies Ordinance, 1962 the statement in respect of written-off loans or any
other financial relief of five hundred thousand rupees or above allowed to a person(s) during the year ended 31 December 2018 is given
in Annexure - I. However, these write offs do not affect the Bank’s right to recover the outstanding debts from these customers, unless
the write off / waiver has been mutually agreed between the borrower and the Bank as part of the settlement terms.
Note 2018 2017

------ Rupees in ‘000 ------
10 FIXED ASSETS
Capital work-in-progress 10.1 155,841 421,895

Property and equipment 10.2 6,082,832 6,042,783
6,238,673 6,464,678
10.1 Capital work-in-progress
Civil works 87,397 15,057

Advances to suppliers and contractors 63,782 17,577
Advances against purchase of premises - 60,000
Core banking system - 329,261
Consultant’s fee and other charges 4,662 -
155,841 421,895
10.2 Property and equipment

2018
Electrical,
Building on Building on
Freehold Leasehold Leasehold Furniture office and
Freehold Leasehold Vehicles Total
land land Improvements and fixtures computer
land land
equipment
--------------------------------------------------------- Rupees in ‘000 ---------------------------------------------------------
At 01 January 2018
Cost / revalued amount 1,255,970 349,047 187,546 3,808,770 1,300,554 419,952 2,375,457 251,188 9,948,484
Accumulated depreciation - - (48,078) (1,373,201) (299,345) (220,214) (1,785,826) (179,037) (3,905,701)
Net book value 1,255,970 349,047 139,468 2,435,569 1,001,209 199,738 589,631 72,151 6,042,783
Year ended 31 December 2018

Opening net book value 1,255,970 349,047 139,468 2,435,569 1,001,209 199,738 589,631 72,151 6,042,783
Additions 77,310 - 7,551 2,946 61,667 16,651 338,478 33,090 537,693
Movement in surplus on assets revalued
during the year - - - - - - - - -
Disposals / write-offs - - - - (8,963) (205) (3,053) - (12,221)
Depreciation charge - - (6,103) (113,113) (66,598) (36,349) (233,154) (30,106) (485,423)
Other adjustments / transfers - - - (291) 291 - - - -
Closing net book value 1,333,280 349,047 140,916 2,325,111 987,606 179,835 691,902 75,135 6,082,832
At 31 December 2018
Net book value 1,333,280 349,047 140,916 2,325,111 987,606 179,835 691,902 75,135 6,082,832
Rate of depreciation (percentage) - - 3-7 3-7 5 10 20 - 33 20

2017
Electrical,
Building on Building on
Freehold Leasehold Leasehold Furniture office and
Freehold Leasehold Vehicles Total
land land Improvements and fixtures computer
land land
equipment
--------------------------------------------------------- Rupees in ‘000 ---------------------------------------------------------
At 01 January 2017
Cost / revalued amount 936,055 186,967 138,296 2,742,286 1,231,522 427,233 2,293,532 257,661 8,213,552
Net book value 936,055 186,967 100,117 1,566,419 989,099 213,409 592,181 94,605 4,678,852

Opening net book value 936,055 186,967 100,117 1,566,419 989,099 213,409 592,181 94,605 4,678,852
Additions - - 22,772 28,570 96,734 30,589 224,998 12,986 416,649
Movement in surplus on assets revalued
during the year 319,915 162,080 26,478 1,037,961 - - - - 1,546,434
Disposals / write-offs - - - - (21,485) (4,512) (5,745) (1,025) (32,767)
Depreciation charge - - (9,899) (197,334) (63,186) (36,690) (225,259) (34,415) (566,783)
Other adjustments / transfers - - (47) 47 (3,058) 3,456 - 398
Closing net book value 1,255,970 349,047 139,468 2,435,569 1,001,209 199,738 589,631 72,151 6,042,783
At 31 December 2017
Net book value 1,255,970 349,047 139,468 2,435,569 1,001,209 199,738 589,631 72,151 6,042,783
Rate of depreciation (percentage) - - 5-9 5-13 5 10 20 20
10.2.1 The cost of fully depreciated property and equipment still in use amounts to Rs. 1,551.390 million (2017: Rs. 1,443.967 million).
10.2.2 During the year 2017, the Bank’s freehold / leasehold land and building on freehold / leasehold land were revalued by M/s Harvester
Services (Private) Limited (Valuation and Engineering Consultants) on the basis of their professional assessment of the present market
value. As a result of revaluation, the market value of freehold / leasehold land was determined at Rs.1,605.017 million and building on
freehold / leasehold land was determined at Rs. 2,574.086 million.
Had there been no revaluation, the carrying amount of freehold / leasehold land and building on freehold / leasehold land as at 31
December 2018 would have been Rs.1,010.140 million and Rs. 509.310 million respectively (2017: Rs. 1,010.140 million and Rs.
532.398 million respectively).
10.2.2 Details of disposals / deletion of property and equipment to executives and other persons with original cost or book value in excess of Rs.
1 million or Rs. 250,000 respectively (whichever is less) are given in Annexure - III which is an integral part of these financial statements.
No disposal of fixed assets have been made to any related party during the current year.
2018
11 INTANGIBLE ASSETS Computer
Trademark Total
software
--------------------Rupees in 000--------------------
At 01 January 2018
Cost 706,223 6,084 712,307
Accumulated amortisation (590,476) (5,044) (595,520)
Net book value 115,747 1,040 116,787

Opening net book value 115,747 1,040 116,787
Additions:
- directly purchased 466,965 - 466,965
Amortisation charge (128,583) (633) (129,216)
Closing net book value 454,129 407 454,536
At 31 December 2018
Cost 1,173,188 6,084 1,179,272
Net book value 454,129 407 454,536
Rate of amortisation (percentage) 20 to 33.33 33.33
Useful life 3 to 5 3

2017
Computer
Trademark Total
software
--------------------Rupees in 000--------------------
At 01 January 2017
Cost 671,250 5,786 677,036
Net book value 200,831 1,472 202,303

Opening net book value 200,831 1,472 202,303
Additions:
- directly purchased 34,973 298 35,271
Amortisation charge (120,057) (730) (120,787)
Closing net book value 115,747 1,040 116,787
At 31 December 2017
Cost 706,223 6,084 712,307
Net book value 115,747 1,040 116,787
Rate of amortisation (percentage) 33.33 33.33
Useful life 3 3
11.1 The cost of fully amortised intangible assets still in use amounts to Rs. 476.635 million (2017: Rs. 444.870 million).
11.2 Major addition in intangibles consist of new core banking system, Temenos T-24 with a carrying value of Rs. 365.938 million and a useful
life of 5 years.
Note 2018 2017

12 OTHER ASSETS ---------Rupees in ‘000---------
Income / mark-up accrued in local currency 4,239,379 3,603,349

Income / mark-up accrued in foreign currency 1,629 5,504
Dividend receivable 7,700 26,811
Advances, deposits, advance rent and other prepayments 369,791 349,624
Advance taxation (payments less provisions) 1,410,432 1,587,778
Non-banking assets acquired in satisfaction of claims 12.1 76,027 -
Branch adjustment account 9,548 -
Mark to market gain on forward foreign exchange contracts 335,045 275,173
Cash margin against margin trading - 3
Stationery and stamps in hand 38,945 34,007
Due from the State Bank of Pakistan 194,330 282,275
Advance against subscription of shares 50,000 50,000
Advance against subscription of term finance certificates 125,000 -
Acceptances 4,489,160 3,126,784
Others 12.2 372,393 646,210
11,719,379 9,987,518
Less: provision held against other assets 12.3 (156,077) (156,077)
Other assets - total 11,563,302 9,831,441
12.1 Market value of non-banking assets acquired in satisfaction of claims 12.1.1 76,989 -

12.1.1 The non-banking assets acquired in satisfaction of claims by the Bank have been valued by independent professional valuers as at 03
May 2018. The valuation was carried out by F.K.S Building Services, Harvester Services (Pvt) Ltd and Arch-e-Decon on the basis of
professional assessment of present market values.
2018 2017
12.1.2 Non-banking assets acquired in satisfaction of claims ---------Rupees in ‘000---------
Acquired during the year 76,989 -

Depreciation (962) -
Closing balance 76,027 -
12.2 This includes an amount of Rs. 143.443 million (2017: Rs.143.443 million) in respect of fraud and forgery claims relating to cash
embezzlement made in the Bank. The Bank has initiated legal proceedings against the alleged and has also taken necessary steps to
further strengthen its internal control system.
Note 2018 2017

12.3 Provision held against other assets ---------Rupees in ‘000---------
Provision held against receivable against fraud & forgeries 143,443 143,443
Others 12,634 12,634
156,077 156,077
12.3.1 Movement in provision held against other assets

Charge / (reversals) for the year - -
13 CONTINGENT ASSETS
There were no contingent assets as at the balance sheet date.
14 BILLS PAYABLE
In Pakistan 3,993,525 4,895,447

Outside Pakistan - -
3,993,525 4,895,447
15 BORROWINGS
Secured
Borrowings from State Bank of Pakistan
Under export refinance scheme 15.2.1 11,322,048 10,348,288
Long term financing facility for plant and machinery 15.2.2 1,139,389 998,524
Modernisation of SME-Rice Husking 15.2.3 15,810 11,600
Repurchase agreement borrowings 15.2.4 44,865,048 35,035,335
57,342,295 46,393,747
Repurchase agreement borrowings - other banks 15.2.5 3,931,220 2,474,983

Borrowings from other financial institutions - local 15.2.6 11,860,880 9,999,058
Borrowings from other financial institutions - foreign 15.2.7 7,519,499 2,865,974
Total secured 80,653,894 61,733,762
Unsecured
Call borrowings 15.2.8 1,021,225 2,573,225
Overdrawn nostro accounts 287,798 277,249
Total unsecured 1,309,023 2,850,474
81,962,917 64,584,236

2018 2017
15.1 Particulars of borrowings with respect to currencies ---------Rupees in ‘000---------

In foreign currencies 7,807,297 3,143,223
81,962,917 64,584,236
15.2.1 The Bank has entered into an agreement with SBP for extending export finance to its customers. Borrowings under the export refinance
scheme of SBP carry interest at rates ranging from 1.00% to 2.50% per annum (2017: 1.00% to 2.50% per annum). These are secured
against demand promissory notes and are due to mature latest by 26 June 2019 (2017: latest by 27 June 2018).
15.2.2 These represent borrowings from SBP under scheme for long-term financing facility at rates ranging from 3.00% to 6.00% per annum
(2017: 4.50% to 9.70% per annum) and have varying long term maturities due by 20 June 2028 (2017: due by 06 April 2027). Under the
agreement, SBP has a right to recover the outstanding amount from the Bank at the respective maturity dates of each finance by directly
debiting the current account of the Bank maintained with SBP.
15.2.3 These represent borrowings from SBP under the scheme for Modernisation of SME Rice Husking Mills in Sindh at the rates ranging from
4.25% to 6.25% per annum (2017: 4.75% to 6.25% per annum) and are due to mature latest by 29 September 2023 (2017: latest by
16 December 2019).
15.2.4 These represent repurchase agreements borrowings executed with SBP which carry mark up at the rate of 10.16% per annum (2017:
5.88% per annum) and are due to mature latest by 04 January 2019 (2017: latest by 05 January 2018). The market value of securities
given as collateral against these borrowings are given in note 8.2.1.
15.2.5 These represent repurchase agreements borrowings at the rate of 10.15% per annum (2017: 5.70% to 5.90% per annum) and are due
to mature latest by 04 January 2019 (2017: latest by 22 January 2018). The market value of securities given as collateral against these
borrowings are given in note 8.2.1.
15.2.6 These represent borrowings executed with the local financial institutions secured against government securities which carry mark up
at rates ranging between 6.28% to 8.15% per annum (2017: 5.83% per annum) and are due to mature latest by 18 April 2019 (2017:
latest by 30 November 2018).
15.2.7 These represent borrowings against foreign bills from various foreign banks at rates ranging from 3.41% to 4.19% per annum (2017:
2.07% to 2.96% per annum) and are due to mature latest by 20 May 2019 (2017: latest by 20 March 2018).
15.2.8 These represent borrowings executed with the local financial institutions secured against government securities which carry mark up
at the rate of 9.80% per annum (2017: 5.73% per annum) and are due to mature latest by 21 January 2019 (2017: latest by 06 March
2018). The market value of securities given as collateral against these borrowings as given in note 8.2.1.
16 DEPOSITS AND OTHER ACCOUNTS
2018 2017
In local In foreign In local In foreign
Total Total
currency currencies currency currencies
----------------------------------------Rupees in ‘000----------------------------------------
Customers
Current deposits 54,008,141 5,908,167 59,916,308 54,859,110 4,455,133 59,314,243
Savings deposits 73,435,215 6,325,280 79,760,495 79,289,879 5,644,080 84,933,959
Term deposits 89,046,247 1,183,916 90,230,163 61,886,284 737,579 62,623,863
Others 5,158,255 - 5,158,255 3,769,795 - 3,769,795
221,647,858 13,417,363 235,065,221 199,805,068 10,836,792 210,641,860
Financial Institutions
Current deposits 854,351 274,092 1,128,443 313,999 49,919 363,918
Savings deposits 13,440,369 - 13,440,369 9,910,039 2,207 9,912,246
Term deposits 12,744,728 - 12,744,728 6,386,076 - 6,386,076
27,039,448 274,092 27,313,540 16,610,114 52,126 16,662,240
248,687,306 13,691,455 262,378,761 216,415,182 10,888,918 227,304,100

2018 2017
16.1 Composition of deposits ---------Rupees in ‘000---------
- Individuals 102,211,257 104,800,775

- Government (Federal and Provincial) 34,276,428 12,658,757
- Public Sector Entities 32,916,933 36,364,195
- Banking Companies 705,549 2,000,545
- Non-Banking Financial Institutions 27,509,858 14,106,348
- Private Sector 64,758,736 57,373,480
262,378,761 227,304,100
16.2 Deposits eligible under Insurance arrangements
During the current year, the SBP has set up a fully owned subsidiary – the Deposit Protection Corporation (DPC), with an aim to provide
protection to small depositors of banks operating in Pakistan. The Corporation has been set up through promulgation of the Deposit
Protection Corporation Act, 2016, (the Act) and commenced its business with effect from 01 June 2018. Membership of the Deposit
Protection Corporation is compulsory for all banks scheduled under sub-section (2) of section 37 of the State Bank of Pakistan Act,
1956. Under the arrangement, the objective of DPC would be to protect the depositors to the extent of the guaranteed amount, in case
a member bank is notified as a failed institution by SBP.
The framework provided by DPC lays down the methodology for arriving at Eligible Deposits, as well as determining the premium
amount payable under the regulations. The premium amount so determined are required to be deposited by all banks with DPC on a
quarterly basis.
As at 31 December 2018, the deposits eligible to be covered under insurance arrangements amount to Rs. 106,280 million. (2017 : Rs.
100,007 million).
Note 2018 2017

17 SUBORDINATED DEBT - UNSECURED ---------Rupees in ‘000---------
Listed Term Finance Certificates - Additional Tier I 17.1 4,000,000 -

Listed Term Finance Certificates - Tier II 17.2 2,996,400 2,997,600
6,996,400 2,997,600
17.1 Listed Term Finance Certificates - Additional Tier I
This denotes rated, listed and unsecured Term Finance Certificates (TFCs) issued as instrument of redeemable capital of Rs. 4,000
Million issued under Section 66 of the Companies Act, 2017. The funds raised by the Bank through the issuance of these TFCs have
contributed towards the Bank’s Additional Tier 1 Capital for meeting capital adequacy requirements as per Basel III Guidelines set by
SBP under BPRD Circular No. 6 dated 15 August 2013. The instrument is sub-ordinated as to the payment of principal and profit to all
other indebtedness of the Bank (including the listed term finance certificates - Tier II previously issued by the Bank) and is not redeemable
before maturity without prior approval of SBP. Furthermore, these funds are intended to be utilized for the Bank’s ongoing business
operations in accordance with the Bank’s Memorandum and Articles of Association. The key features of the issue are as follows:
Issue amount Rs. 4,000 million
Issue date 06 December 2018
Maturity date Perpetual
Rating (Note 36) “A” by PACRA on 20 December 2018
Security Unsecured
Profit payment frequency Semi-annually
Redemption No fixed or final redemption date

Mark-up 6 Months KIBOR + 2.00% per annum
Call option (if any) The Bank may call the TFCs (either partially or in full), after five (5) years from the date of issuance with the
prior approval of SBP. Moreover, and as per Clause iv(b) of Annexure 2 of the Basel III Circular, the Issuer
shall not exercise a call option unless the called instrument is replaced with capital of same or better quality.
The Call must be subject to a prior notice of not less than 60 days given by SNBL to the investors. The Call
Option once announced will not be revocable.
Lock-in-clause (if any) The TFCs contain a lock-in clause which stipulates that no profit payments would be made if such payments
result in a shortfall in the Bank’s Minimum Capital Requirement (MCR) or Capital Adequacy Requirement
(CAR) or increase any existing shortfalls in MCR and / or CAR.
Loss absorbency clause The TFCs are also subject to loss absorbency and / or any other requirements under SBP’s Basel III Capital
Rules. Upon the occurrence of a Point of Non-Viability event as defined by SBP’s Basel III Capital Rule, SBP
may at its option, fully and permanently convert the TFCs into common shares of the Bank and / or have
them immediately written off (either partially or in full). Number of shares to be issued to TFC Holders at the
time of conversion will be equal to the ‘Outstanding Face Value of the TFC’ divided by market value per share
of the Bank’s common equity on the date of trigger of the non-viability event as declared by SBP, subject to
a cap of 360,000,000 shares.
17.2 Listed Term Finance Certificates - Tier II
This denotes rated, listed and unsecured Term Finance Certificates (TFCs) issued as instrument of redeemable capital with a tenor of 8
years. The instrument is sub-ordinated as to the payment of principal and profit to all other indebtedness of the Bank, except Listed Term
Finance Certificates - Additional Tier I as recently issued; and is not redeemable before maturity without prior approval of SBP. The key
features of the issue are as follows:
Issue amount Rs. 3,000 million
Issue date 07 July 2015
Maturity date 07 July 2023
Rating (Note 36) “A+” by PACRA on 20 December 2018
Security Unsecured
Profit payment frequency Semi-annually
Redemption Principal is redeemable semi-annually in such a way that 0.30% of the principal will be redeemed in the first
90 months and the remaining principal of 99.70% at maturity at the end of the 96th month in July 2023.
Mark-up 6 Months KIBOR + 1.35% per annum
Call option (if any) The Bank may call the TFCs, in part or full, on any profit payment date from the 60th month from last day of
public subscription and on all subsequent profit payment dates, subject to SBP’s approval and not less than
45 days prior notice being given to the Trustee.
Lock-in-clause (if any) The TFCs contains a lock-in clause which stipulates that neither interest nor principal may be paid (even at
maturity) if such payments will result in shortfall in the Bank’s Minimum Capital Requirement (MCR) or Capital
Adequacy Requirement (CAR) or increase any existing shortfall in MCR and CAR.
Loss absorbency clause The instrument will be subject to loss absorbency and / or any other requirements under SBP’s Basel III
Capital Rules. Upon the occurrence of a Point of Non-Viability event as defined by SBP’s Basel III Capital
Rule, SBP may at its option, fully and permanently convert the TFCs into common shares of the Bank and /
or have them immediately written off (either partially or in full). Number of shares to be issued to TFC Holders
at the time of conversion will be equal to the ‘Outstanding Face Value of the TFC’ divided by market value
per share of the Bank’s common equity on the date of trigger of the non-viability event as declared by SBP,
subject to the cap of 225,000,000 shares.

18 DEFERRED TAX LIABILITIES
2018
Recognised in At 31
At 1 January Recognised
the profit and December
2018 in OCI
loss account 2018
------------------------------Rupees in 000------------------------------
Deductible temporary differences on
- Post retirement employee benefits (23,185) - 9,244 (13,941)
- Deficit on revaluation of investments 76,984 - (802,150) (725,166)
- Provision against advances, off balance sheet etc. (192,567) (1,406) - (193,973)
(138,768) (1,406) (792,906) (933,080)
Taxable temporary differences on
- Surplus on revaluation of fixed assets 717,598 (33,791) - 683,807
- Accelerated tax depreciation 356,881 12,446 - 369,327
1,074,479 (21,345) - 1,053,134
935,711 (22,751) (792,906) 120,054
2017
Recognised in At 31
At 1 January Recognised in
the profit and December
2017 OCI
loss account 2017
------------------------------Rupees in 000------------------------------
Deductible temporary differences on
- Post retirement employee benefits (26,415) - 3,230 (23,185)
- Provision against advances, off balance sheet etc. (368,194) 175,627 - (192,567)
(394,609) 175,627 3,230 (215,752)
Taxable temporary differences on
- Surplus on revaluation of fixed assets 442,284 (97,240) 372,554 717,598
- Surplus on revaluation of investments 763,447 - (686,463) 76,984
- Accelerated tax depreciation 326,408 30,473 - 356,881
1,532,139 (66,767) (313,909) 1,151,463
1,137,530 108,860 (310,679) 935,711
Note 2018 2017

19 OTHER LIABILITIES ---------Rupees in ‘000 ---------
Mark-up / return / interest payable in local currency 2,528,112 965,633

Mark-up / return / interest payable in foreign currency 83,810 28,081
Unearned commission and income on bills discounted 64,409 25,090
Accrued expenses 476,078 442,935
Acceptances 4,489,160 3,126,784
Unclaimed dividends 55,079 44,354
Branch adjustment account - 54,333
Payable to workers’ welfare fund 29.1 380,778 441,856
Sundry deposits 511,533 453,197
Others 468,298 415,339
9,057,257 5,997,602

20 SHARE CAPITAL
20.1 Authorized Capital
2018 2017 Note 2018 2017

Number of shares --------- Rupees in ‘000 ---------
1,800,000,000 1,500,000,000 Ordinary shares of Rs. 10 /- each 20.1.1 18,000,000 15,000,000
20.1.1 During the year, the shareholders of the Bank in their extraordinary general meeting held on 26 October 2018 have approved the
increase in authorised share capital of the Bank to Rs.18 billion.
20.2 Issued, subscribed and paid up capital
2018 2017 2018 2017

Number of shares --------- Rupees in ‘000 ---------
Ordinary shares
387,397,655 387,397,655 Fully paid in cash 3,873,977 3,873,977
715,065,828 715,065,828 Issued as bonus shares 7,150,659 7,150,659
1,102,463,483 1,102,463,483 11,024,636 11,024,636
Note 2018 2017

21 SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS (Restated)
--------- Rupees in ‘000 ---------
Surplus / (deficit) on revaluation of
- Available-for-sale securities 8.1 (2,071,902) 219,956
- Fixed assets 21.1 2,573,180 2,669,725
501,278 2,889,681
Deferred tax on surplus / (deficit) on revaluation of:
- Available-for-sale securities 725,166 (76,984)
- Fixed assets 21.1 (683,807) (717,598)
41,359 (794,582)
542,637 2,095,099
21.1 Surplus on revaluation of fixed assets
Surplus on revaluation of fixed assets as at 1 January - as previously reported 2,669,725 1,368,910

Effect of change in accounting policy as disclosed in note 4.1 - net of tax - 48,803
Recognised during the year - 1,529,841
Realised on disposal during the year - net of deferred tax - (83,766)
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax (62,754) (96,823)
Related deferred tax liability on incremental
depreciation charged during the year (33,791) (52,135)
Related deferred tax liability on surplus realised on disposal - (45,105)
Surplus on revaluation of fixed assets as at 31 December 2,573,180 2,669,725
Less: related deferred tax liability on:

- revaluation as at 1 January (717,598) (442,284)
- revaluation recognised during the year - (372,554)
- surplus realised on disposal during the year - 45,105
- incremental depreciation charged during the year 33,791 52,135
(683,807) (717,598)
1,889,373 1,952,127

Note 2018 2017
(Restated)
22 CONTINGENCIES AND COMMITMENTS --------- Rupees in ‘000 ---------
- Guarantees 22.1 17,619,705 15,059,057

- Commitments 22.2 180,624,314 93,230,045
- Other contingent liabilities 22.3 2,278,386 2,774,677
200,522,405 111,063,779
22.1 Guarantees:
Financial guarantees 2,413,133 2,611,557

Performance guarantees 13,536,585 11,457,912
Other guarantees 1,669,987 989,588
17,619,705 15,059,057
22.2 Commitments:
Documentary credits and short-term trade-related transactions

- letters of credit 23,117,645 20,567,881
Commitments in respect of:
- forward foreign exchange contracts 22.2.1 152,359,696 61,341,623
- forward lending 22.2.2 3,056,954 10,654,182
Commitments for acquisition of:
- operating fixed assets 81,102 563,192
- intangible assets 39,971 103,167
Other commitments 22.2.3 1,968,946 -

180,624,314 93,230,045
22.2.1 Commitments in respect of forward foreign exchange contracts
Purchase 80,729,599 32,938,645

Sale 71,630,097 28,402,978
152,359,696 61,341,623
The maturities of the above contracts are spread over a period of one year.
2018 2017
22.2.2 Commitments in respect of forward lending Note --------- Rupees in ‘000 ---------
Undrawn formal standby facilities, credit lines

and other commitments to lend 22.2.2.1 3,056,954 10,654,182
22.2.2.1 These represent commitments that are irrevocable because they cannot be withdrawn at the discretion of the Bank without the risk of
incurring significant penalty or expense. The Bank has certain other commitments to extend credit that represent revocable commitments
and do not attract any significant penalty or expense in case the facility is withdrawn unilaterally.
2018 2017
--------- Rupees in ‘000 ---------
22.2.3 Commitment in respect of forward government securities transactions - Sale 1,968,946 -
22.3 Other contingent liabilities 2,278,386 2,774,677

22.3.1 (a) The Income tax returns of the Bank have been filed upto Tax Year 2018 (accounting year ended 31 December 2017). The Income
tax authorities have issued amended assessment orders for tax years 2011, 2015 & 2016 thereby creating additional tax demands
of Rs. 210.719 million (mainly on account of provision for non-performing loans, allocation of expenses, inadmissibility of expenses
etc) which have been paid as required under the law. The Bank has filed appeals before various appellate forums against these
amendments. Assessments from Tax Year 2001 upto Tax Year 2010 have been decided at the level of Appellate Tribunal Inland
Revenue. The department has filed tax references in respect of certain matters with the Honourable Lahore High Court which are
currently pending. In case of any adverse decision, an additional tax liability of Rs. 617.120 million (which includes impact of certain
timing differences as well) may arise. Further, assessments for tax years 2012, 2013, 2014 and 2017 have been decided at the level
of Commissioner Inland Revenue (Appeals). The department has filed appeals for tax years 2012 and 2013 with Appellate Tribunal
Inland Revenue which are currently pending and in case of any adverse decision an additional tax liability of Rs. 866.384 million
(which include impact of certain timing differences as well) may arise. The Bank has decided to file appeal for Tax Year 2014 and 2017
with Appellate Tribunal Inland Revenue which in case of any adverse decision may create an additional tax liability of Rs. 100.049
million. However, the management is confident that these matters will be ultimately decided in favor of the Bank and the Bank may
not be exposed to any additional tax liability on these accounts.
(b) Tax Authorities have passed orders for tax years 2008 to 2012 levying Federal Excise Duty on certain items. The Bank has filed
appeals against these assessments which are pending before various appellate forums. The aggregate net amount involved is Rs.
64.571 million. The management of the Bank is confident that the appeals will be decided in the favor of the Bank.
(c) Tax Authorities have passed order for tax years 2014 and 2015 under section 161/205 of the Income Tax Ordinance 2001, creating
a demand of Rs. 106.685 million and Rs. 67.672 million respectively for non-deduction of tax at source. Against the said demands,
the Bank has already filed appeals before the Commissioner Inland Revenue (Appeals), which are currently pending. However, the
management is confident that these matters will be ultimately decided in favor of the Bank and the Bank may not be exposed to any
additional tax liability on these accounts.
22.3.2 Claims against the Bank which are not acknowledged as debts amounted to Rs. 9.760 million (2017: Rs. 8.673 million).
22.3.3 The Assistant Commissioner, Inland Revenue vide orders under section 182/140 of the Income Tax Ordinance, 2001 has levied penalties
against staff of the Bank amounting to Rs. 30 million. The action taken by the Bank in this case was backed by legal opinion of the
customer’s lawyer / stay order of the Islamabad High Court. Currently, the matter is pending before Commissioner Inland Revenue
(Appeals) subsequent to appeal filed by the staff. In case of any adverse decision in appeals, the Bank reserves the right of recourse on
customers for re-imbursement. However, the management is confident that these matters will be ultimately decided in favor of the Bank
and the Bank may not be exposed to any additional tax liability on these accounts.
22.3.4 A penalty of Rs. 50 million has been imposed by the Competition Commission of Pakistan (“the Commission”) on the Bank on account
of uncompetitive behaviour and imposing uniform cost on cash withdrawal from ATM transactions. The Bank along with other Banks had
filed a constitutional petition before the Competition Appellate Tribunal which has set aside the order of the Commission. Against the said
order of the Competition Appellate Tribunal, the Commission has filed an appeal before the Supreme Court of Pakistan, the hearing of
which is currently pending. The management of the Bank is confident that the appeal will be decided in the favor of the Bank.
22.3.5 Through the Finance Act, 2008 an amendment was made in the Employees Old Age Benefits Act, 1976 whereby the exemption available
to banks and their employees was withdrawn by omission of clause (e) of Section 47 of the said Act and banks and their employees were
made liable for contribution to Employee Old Age Benefit Institution. The Lahore High Court, subsequently, nullified the amendments
made through the Finance Act, 2008.
Subsequently, several other banks also filed the Constitutional Petition before the Sindh High Court which decided the matter in favor
of the banks. As a result of the decision of the Lahore High Court and Sindh High Court, the Bank stopped EOBI contribution w.e.f.
February 2012. An appeal was filed by the EOBI in the Supreme Court of Pakistan which has been disposed of by the Honorable Court
vide its order dated 10 November 2016 in favor of the Banks. However, EOBI has filed review Petition on 09 December 2016 before the
Supreme Court of Pakistan which is currently pending.
In case of any adverse decision by the Supreme Court of Pakistan, a contribution of Rs.155.426 million (upto 31 December 2017: Rs.
128.627 million) will become payable by the Bank to the EOBI. The said amount of Rs. 155.426 million has not been provided in these
financial statements, as the Bank is confident that the case may be decided in the Bank’s favour.
2018 2017
23 MARK-UP / RETURN / INTEREST EARNED --------- Rupees in ‘000 ---------
Loans and advances 12,740,891 9,623,134

Investments 8,159,912 8,271,591
Lendings to financial institutions 263,141 77,267
Balances with banks 32,129 6,524
On placement and call lendings 352,007 375,578
Income on bai muajjal placements 51,712 150,432
21,599,792 18,504,526

Note 2018 2017
(Restated)
24 MARK-UP / RETURN / INTEREST EXPENSED --------- Rupees in ‘000 ---------
Deposits 10,176,039 8,329,920

Borrowings 3,863,197 3,291,221
Subordinated debt 365,123 224,487
Cost of foreign currency swaps against
foreign currency deposits / borrowings 242,440 186,816
14,646,799 12,032,444
25 FEE & COMMISSION INCOME
Branch banking customer fees 374,352 365,548

Consumer finance related fees 35,841 29,441
Debit card related fees 108,109 64,470
Investment banking / arrangement fees 177,799 49,189
Commission on trade 512,730 450,952
Commission on guarantees 76,809 96,969
Commission on cash management 8,464 4,083
Commission on remittances including home remittances 19,005 23,961
Commission on bancassurance 179,368 141,989
Rebate income 163,711 135,583
Others 49,528 30,465
1,705,716 1,392,650
26 GAIN ON SECURITIES
Realised 26.1 258,982 1,158,244

Unrealised - held for trading 8.1 21 34
Unrealised - forward sale of government securities 1,124 -
260,127 1,158,278
26.1 Realised gain on:
Federal Government securities 195,330 1,062,063

Shares 64,385 61,608
Mutual funds (733) 29,951
Non-Government debt securities - 4,622
258,982 1,158,244
27 OTHER INCOME
Gain on sale of fixed assets-net 26,398 17,897

Staff notice period and other recoveries 20,355 23,155
46,753 41,052

Note 2018 2017
28 OPERATING EXPENSES --------- Rupees in ‘000 ---------
Total compensation expense 28.1 2,990,429 2,795,985
Property expense
Rent and taxes 711,922 675,382
Insurance 87,082 77,845
Utilities cost 309,612 290,503
Security (including guards) 294,688 277,604
Repair and maintenance (including janitorial charges) (refer note 38.2) 333,994 339,182
Depreciation 10.2 185,813 270,419
1,923,111 1,930,935
Information technology expenses
Software maintenance 235,481 125,473
Hardware maintenance 49,270 48,540
Depreciation 10.2 122,792 110,241
Amortisation 11 129,216 120,787
Network charges 188,200 186,556
Others 116,889 103,203
841,848 694,800
Other operating expenses
Directors’ fees and allowances 13,378 12,813
Fees and allowances to Shariah Board 6,791 5,715
Legal and professional charges 97,336 53,851
Outsourced services costs (refer note 38.1) 28.1.1 153,732 131,266
Travelling and conveyance 39,612 41,985
NIFT clearing charges 39,080 32,660
Depreciation 10.2 176,818 186,123
Training and development 15,550 23,211
Postage and courier charges 60,293 53,068
Communication 58,488 47,216
Stationery and printing 178,603 169,078
Marketing, advertisement and publicity 92,145 147,783
Donations 28.2 15,000 16,120
Auditors’ Remuneration 28.3 20,176 13,217
Brokerage and commission 16,414 24,933
Entertainment 174,131 166,931
Fees and subscription 58,575 45,911
Motor vehicle running expenses 163,904 126,042
Service charges 90,835 77,059
Deposit protection insurance premium 28.4 80,006 -
Others 113,921 146,280
1,664,788 1,521,262
7,420,176 6,942,982
28.1 This includes aggregate amount of bonus paid in respect of executives and President and Chief Executive Officer amounting to
Rs. 72.108 million and Rs. 7.000 million respectively (2017: Rs. 82.825 million and Rs. 9.000 million respectively).
28.1.1 Total Cost for the year relating to outsourcing activites included in other opearting activities is Rs. 605.781 million (2017: Rs. 558.394
million) being paid to companies incorporated in Pakistan. The material outsourcing arrangements as specifically disclosed in note 28
along with their nature of services is as follows:
2018 2017
Name of company Nature of Service --------- Rupees in ‘000 ---------
Prime Human Resource Services Business Development Services 153,732 131,266

28.2 Details of the donations given during the year are as follows: 2018 2017
--------- Rupees in ‘000 ---------
Donee
The Aga Khan Education Service, Pakistan 15,000 10,000
Institute of Business Administration, Karachi - 5,000
Old Associates of Kinnaird Society, Karachi - 1,120
15,000 16,120
28.2.1 Directors or their spouse have no interest in any of the donee in current and prior year.
28.3 Auditors’ remuneration
Audit fee 2,200 2,210

Fee for other statutory certifications 4,461 5,016
Fee for audit of employee funds 143 257
Special certifications and sundry advisory services 6,180 3,592
Tax services 6,242 1,315
Out-of-pocket expenses 950 827
20,176 13,217
28.4 This represents the insurance premium paid to the State Bank of Pakistan’s Depositors Protection Corporation (DPC) during the year.
The premium amount was worked out in accordance with the mechanism specified by DPC during the year, based on eligible deposits
position of the Bank as at 31 December 2017. The premium amount payable for the financial year ending 2019 is determined in
accordance with the eligible deposits (note 16.2) as at 31 December 2018 and amounts to Rs. 170.047 million.
Note 2018 2017

29 WORKERS’ WELFARE FUND - NET --------- Rupees in ‘000 ---------
Workers’ Welfare Fund 29.1 (61,077) 59,498
29.1 During the year 2016, the Supreme Court of Pakistan had declared that the amendments in the Workers’ Welfare Fund (WWF) Ordinance
made through Finance Act of 2006 and 2008 were unconstitutional. Accordingly, during the current year, the Bank on the advice of its
tax advisor has reversed the provision on account of WWF amounting to Rs. 120 million for the period from January 2008 to December
2012. However, the Bank continues to maintain the provision for subsequent years, as the levy on account of WWF under the new
constitution of Sindh Revenue Board in 2012 is currently pending for decision in Sindh High Court. The Bank is of the view that remaining
provinces may follow suit regarding the levy of WWF and hence is maintaning full provision from year 2013.
2018 2017
30 OTHER CHARGES --------- Rupees in ‘000 ---------
Penalties imposed by State Bank of Pakistan 20,484 650
Note 2018 2017

(Restated)
31 (REVERSAL) / PROVISIONS & WRITE OFFS - NET --------- Rupees in ‘000 ---------
Provisions for diminution in the value of investments 8.4 145 3,168

(Reversal) / provisions against loans & advances 9.3 (85,749) 63,247
Fixed assets written off 8,449 27,649
Unreconciled balances written off 6,083 -
Impairment reversal against fixed assets (refer note 4.1) - (16,593)
Bad debts written off directly 9.4 - 32
(71,072) 77,503

Note 2018 2017
32 TAXATION --------- Rupees in ‘000 ---------
Current 32.1 1,143,743 1,016,967

Prior years 32.2 - 157,743
Deferred (22,754) 12,934
1,120,989 1,187,644
32.1 The Finance Act, 2018 has introduced certain amendments relating to taxation of banking companies. As per these amendments,
super tax at the rate of 4 percent of the taxable income has been levied for tax year 2019 (accounting year ended 31 December 2018).
Accordingly an amount of Rs. 117.845 million (2017: Nil) has been recognised in these financial statements.
32.2 This includes Rs. Nil (2017: Rs. 122.470 million) on account of super tax for rehabilitation of temporarily displaced person at the rate 4%
of the taxable income for the tax year 2017 (accounting year ended 31 December 2016), which was re-imposed by Finance Act, 2017.
2018 2017
(Restated)
32.3 Relationship between tax expense and accounting profit --------- Rupees in ‘000 ---------
Tax at the applicable tax rate of 35% (2017: 35%) 1,016,629 996,647
Tax effect on permanent differences (14,208) 2,440
Super tax / prior years 117,845 157,743
Others 723 30,814
1,120,989 1,187,644
2018 2017
(Restated)
33 BASIC EARNINGS PER SHARE --------- Rupees in ‘000 ---------
Profit for the year 1,783,664 1,659,919
--------Number of shares--------
Weighted average number of ordinary shares 1,102,463,483 1,102,463,483
------------ (Rupees) ------------
Basic earnings per share 1.6179 1.5056
2018 2017
34 DILUTED EARNINGS PER SHARE --------- Rupees in ‘000 ---------
Profit for the year 1,783,664 1,659,919
------- Number of shares ------

Weighted average number of ordinary shares (adjusted
for the effects of all dilutive potential ordinary shares) 1,102,463,483 1,102,463,483
------------ (Rupees) ------------
Diluted earnings per share 1.6179 1.5056

Other Liabilities
Sub-Ordinated
- Mark-up
Loans
Payable*
35 NET DEBT RECONCILIATION ------- (Rupees in ‘000) -------
Net debt as at 01 January 2018 2,997,600 108,877
Other non-cash movements

Mark-up accrued - 365,123
Cash Flows
Principal paid (1,200) -
Issuance of new debt 4,000,000 -
Mark-up paid - (316,068)
3,998,800 (316,068)
Net debt as at 31 December 2018 6,996,400 157,932
* Mark-up is covered under cash flow from operating activities.
Note 2018 2017

36 CASH AND CASH EQUIVALENTS --------- Rupees in ‘000 ---------
Cash and balances with treasury banks 5 26,019,679 19,431,256

Balance with other banks 6 1,179,612 1,151,015
Overdrawn nostro accounts 15 (287,798) (277,249)
26,911,493 20,305,022
37 CREDIT RATING
The Pakistan Credit Rating Agency (PACRA) has maintained the long term credit rating of ‘AA-’ (Double A Minus) and short term rating
of ‘A1+’ (A One Plus) with Stable Outlook of the Bank through its notification dated 20 December 2018 [2017: long term ‘AA-’ (Double
A Minus): short term ‘A1+’ (A One Plus)].
PACRA has also maintained the credit rating of the Bank’s unsecured, subordinated and listed Term Finance Certificates (TFC – 2) issue
of Rs 3,000 million at ‘A+’ (Single A plus) with Stable Outlook through its notification dated 20 December 2018.
Furthermore the Bank’s recently issued unsecured, subordinated, rated, listed perpetual and non-cumulative Term Finance Certificates
of Rs 4,000 million. PACRA has assigned a rating of ‘A’ with Stable Outlook to this instrument through its notification dated 20 December
2018.
2018 2017
38 STAFF STRENGTH --- (Number of employees) ---
Permanent 2,823 2,847

On Bank contract 34 23
Bank’s own staff strength at the end of the year 2,857 2,870
38.1 In addition to the above, 470 (2017: 497) employees of outside contractor / agency were posted in the Bank as at the end of the year to
perform services other than guarding and janitorial services.
38.2 Further, 683 (2017: 654 ) employees of outside contractor / agency were posted in the Bank as at the end of the year to perform janitorial
services.

39 DEFINED BENEFIT PLAN
39.1 General description
As mentioned in note 4.11, the Bank operates a funded gratuity scheme for all its permanent employees. The benefits under the gratuity
scheme are payable on retirement at the age of 60 or earlier cessation of service, in lump sum. The benefit (for all employees other
than the President) is equal to one month’s last drawn basic salary for each year of eligible service with the Bank subject to a minimum
qualifying period of service of five years. For the President, the benefit is determined as per the terms of his employment. The plan assets
and defined benefit obligations are based in Pakistan.
39.2 Number of employees under the scheme
The number of employees covered under the following defined benefit schemes are:
2018 2017
--- (Number of employees) ---
- Gratuity fund 2,831 2,797
39.3 Principal actuarial assumptions
The actuarial valuations were carried out as at 31 December 2018 using the following significant assumptions:
2018 2017
---------- Per annum ----------
Discount rate 10.00 7.75

Expected rate of return on plan assets 10.00 7.75
Expected rate of salary increase 8.00 6.75
Mortality rates (for death in service) SLIC SLIC
(2001-05)-1 (2001-05)-1
Rate of employee turnover Special Special
2018 2017
---------Rupees in ‘000---------
39.4 Reconciliation of payable to defined benefit plans
Present value of obligations 729,104 694,310

Fair value of plan assets (729,104) (694,310)
- -
39.5 Movement in defined benefit obligations
Obligations at the beginning of the year 694,310 629,630

Current service cost 94,683 97,562
Interest cost 53,198 48,630
Benefits paid by the Bank (72,000) (60,589)
Re-measurement loss / (gain) (41,087) (20,923)
Obligations at the end of the year 729,104 694,310

Note 2018 2017
39.6 Movement in fair value of plan assets ---------Rupees in ‘000---------
Fair value at the beginning of the year 694,310 629,630

Interest income on plan assets 53,198 48,630
Contribution by the Bank - net (3,728) 27,744
Re-measurements: net return on plan assets
over interest income gain / (loss) 39.8.2 (14,676) (11,694)
Fair value at the end of the year 729,104 694,310
39.7 Movement in payable under defined benefit schemes
Opening balance - -
Charge for the year 94,683 97,562
Contribution by the Bank - net (68,272) (88,333)
Re-measurement loss / (gain) recognised in
other comprehensive income during the year 39.8.2 (26,411) (9,229)
Closing balance - -
39.8 Charge for defined benefit plans
39.8.1 Cost recognised in profit and loss
Current service cost 94,683 97,562

Net interest on defined benefit asset / liability 53,198 48,630
147,881 146,192
39.8.2 Re-measurements recognised in other

comprehensive income during the year
Loss / (gain) on obligation

- Demographic assumptions - 7,998
- Financial assumptions (34,664) 491
- Experience adjustment (6,423) (29,412)
Return on plan assets over interest income 14,676 11,694
Total re-measurements recognised in other comprehensive income (26,411) (9,229)
39.9 Components of plan assets
Cash and cash equivalents - net 573,544 545,416

Government securities 6,109 7,419
Shares 48,915 -
Mutual funds 100,536 141,475
729,104 694,310
39.9.1 The funds primarily invest in government securities (Market Treasury Bills, Pakistan Investment Bonds and Special Savings Certificates)
and accordingly do not carry any credit risk. These are subject to interest rate risk based on market movements. Equity securities and
units of mutual funds are subject to price risk whereas non-government debt securities are subject to credit risk and interest rate risk.
These risks are reqularly monitored by Trustees of the employee funds.
39.10 Sensitivity analysis
Sensitivity analysis has been disclosed by varying one assumption keeping all other assumptions constant and calculating the impact on
the present value of the defined benefit obligations under the employee benefit scheme. The increase / (decrease) in the present value of
defined benefit obligations as a result of change in each assumption is summarised below:

2018 2017
---------Rupees in ‘000---------
1% increase in discount rate (33,844) (34,065)

1% decrease in discount rate 37,349 37,812
1 % increase in expected rate of salary increase 39,479 39,520
1 % decrease in expected rate of salary increase (36,360) (36,227)
39.11 The expected gratuity expense / contribution to the fund for the next year commencing 01 January 2019 works out to be Rs. 96.881
million (2017: Rs 94.683 million).
39.12 Gratuity expense for the year ended 31 December 2019 Rupees in ‘000
Service Cost 96,881

Net interest on the net defined benefit liability / (asset)
(i) Interest cost on defined benefit obligation 71,819
(ii) Interest income on plan assets (71,819)
(iii) Net interest cost -
Gratuity cost to be recognised in the profit and loss account 96,881
39.13 Maturity profile 2018 2017
The weighted average duration of the obligation (in years) 4.87 5.16
39.14 Funding Policy
As mentioned in note 4.11, the Bank operates a funded gratuity scheme for all its permanent employees. The benefits under the gratuity
scheme are payable on retirement at the age of 60 or earlier cessation of service, in lump sum. The benefit (for all employees other
than the President) is equal to one month’s last drawn basic salary for each year of eligible service with the Bank subject to a minimum
qualifying period of service of five years. For the President, the benefit is determined as per the terms of his employment. The plan assets
and defined benefit obligations are based in Pakistan. For deceased cases, the qualifying period is at least 1 year in service.
39.15 The Gratuity scheme exposes the entity to the following risks:
Mortality risks
This is the risk that the actual mortality experience is different. The effect depends on the beneficiaries’ service / age distribution
and the benefit.
Investment risks
This is the risk of the investment underperforming and not being sufficient to meet the liabilities.
Final salary risks

This is the risk that the final salary at the time of cessation of service is greater than what was assumed. Since the benefit is
calculated on the final salary, the benefit amount increases similarly.
Withdrawal risks
This is the risk of higher or lower withdrawal experience than assumed. The final effect could go either way depending on the
beneficiaries’ service / age distribution and the benefit.
40 DEFINED CONTRIBUTION PLAN
The Bank operates an approved funded provident fund scheme for all its permanent confirmed employees. Equal monthly contributions
are made, both by the Bank and its employees, to the fund at the rate of 8.33 percent (2017: 8.33 percent) of basic salaries of the
employees. The contribution made by the Bank during the year amounted to Rs. 116.457 million (2017: Rs. 107.584 million each). The
total number of employees as at 31 December 2018 eligible under the scheme were 2,450 (2017: 2,379 employees).

41 COMPENSATION OF DIRECTORS AND EXECUTIVES
President / Chief Directors/

* Executives
Executive Officer Executive Director
2018 2017 2018 2017 2018 2017
--------------------------------------- (Rupees in ‘000) ---------------------------------------
Fees - - 13,378 12,813 - -

Managerial remuneration 34,345 34,764 13,715 9,744 396,975 348,694
Charge for defined benefit plan 4,345 4,138 1,143 1,011 34,194 27,374
Contribution to defined contribution plan 2,838 2,896 1,142 812 30,695 25,941
Rent and house maintenance 15,455 15,644 5,486 3,897 152,389 132,565
Utilities 1,752 1,416 600 - - -
Medical 511 320 1,943 974 38,097 33,141
Leave encashment and others 1,170 1,235 3,890 2,758 213,332 169,202
60,416 60,413 41,297 32,009 865,682 736,917
Number of persons 1 1 8 8 222 186
* Executives mean employees, other than the Chief Executive Officer and directors, whose basic salary exceed Rs. 1.2 million (previously
Rs. 0.5 million in a financial year). Prior year comparatives have been presented in line with the revised threshold applicable this year.
The aggregate amount charged to profit and loss account as remuneration to other key management personnel amounts to Rs. 273.863
million (2017: Rs. 228.896 million) respectively.
In addition to above, all executives and President / Chief Executive Officer of the Bank are also entitled to bonus which is disclosed in
note 28.1 to these financial statements.
In addition, the Bank also provides club membership fee to its President / Chief Executive Officer, Executive Director and certain
executives. The amount charged on account of club membership fee during the year amounted to Rs 1.387 million (2017: Rs. 0.927
million). Furthermore, the President / Chief Executive Officer and Executive Director are also provided with free use of the Bank maintained
car in accordance with their entitlements.
42 FAIR VALUE MEASUREMENTS
The fair value of quoted securities other than those classified as held to maturity, is based on quoted market price. Quoted securities
classified as held to maturity are carried at cost. The fair value of unquoted equity securities, other than investments in associates
and subsidiaries, is determined on the basis of the break-up value of these investments as per their latest available audited financial
statements.
The fair value of unquoted debt securities, fixed term loans, other assets, other liabilities, fixed term deposits and borrowings cannot
be calculated with sufficient reliability due to the absence of a current and active market for these assets and liabilities and reliable data
regarding market rates for similar instruments.
42.1 Fair value of financial assets
The Bank measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the
measurements:
Level 1: Fair value measurements using quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the assets or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Fair value measurements using input for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

The table below analyses financial instruments measured at the end of the reporting period by the level in the fair value hierarchy into
which the fair value measurement is categorised:
2018
Level 1 Level 2 Level 3 Total
On balance sheet financial instruments Rupees in ‘000
Financial assets - measured at fair value

Investments
Federal Government securities - 135,988,665 - 135,988,665
Shares - listed 3,862,867 - - 3,862,867
Non-Government debt securities - 3,129,018 - 3,129,018
Units of mutual fund 210,149 - - 210,149
Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 138,820 - 138,820
Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 83,572,972 - 83,572,972
Forward sale of foreign exchange - 74,138,425 - 74,138,425
Non - Financial Assets

Operating fixed assets (land and buildings)* - - 4,148,354 4,148,354
4,073,016 300,018,530 4,148,354 308,239,900
2017
Level 1 Level 2 Level 3 Total
On balance sheet financial instruments ----------------------- Rupees in ‘000 -----------------------
Financial assets - measured at fair value

Investments
Federal Government Securities - 107,373,652 - 107,373,652
Shares 3,537,647 - - 3,537,647
Non-Government debt securities - 2,172,182 - 2,172,182
Units of mutual fund 212,471 - - 212,471
Financial assets - disclosed but not measured at fair value

Investments
Non-Government debt securities - 558,948 - 558,948
Off-balance sheet financial instruments - measured at fair value

Forward purchase of foreign exchange - 34,001,944 - 34,001,944
Forward sale of foreign exchange - 29,191,104 - 29,191,104
Non - financial Assets

Operating fixed assets (land and buildings)* - - 4,180,054 4,180,054
3,750,118 176,615,673 4,180,054 184,545,845
* The Bank carries out periodic valuation of these assets for reasons disclosed in note 4.7.1 to these financial statements.

The Bank’s policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or change in
circumstances that caused the transfer occurred. There were no transfers between levels 1 and 2 during the year.
(a) Financial instruments in level 1
Financial instruments included in level 1 comprise of investments in listed ordinary shares and units of mutual funds.
(b) Financial instruments in level 2
Financial instruments included in level 2 comprise of GoP Ijarah Sukuks, Pakistan Investment bonds, Market Treasury bills, Corporate
bonds, Term Finance and Sukuk certificates.
(c) Financial instruments in level 3
Financial instruments included in level 3 comprise of operating fixed assets (land and building).
Valuation techniques and inputs used in determination of fair values
Item Valuation techniques and input used
Fully paid-up ordinary shares Fair values of investments in listed equity securities are valued on the basis of closing
quoted market prices available at the stock exchange.
Pakistan Investment Bonds / Market Fair values of Pakistan Investment Bonds and Treasury Bills are derived using the PKRV
Treasury Bills rates (Reuters page).
Government of Pakistan Fair values of GoP Ijarah Sukuks are derived using the PKISRV rates announced by the
Ijarah Sukuks Financial Market Association (FMA) through Reuters. These rates denote an average of
quotes received from nine different pre-defined / approved dealers / brokers.
Term Finance, Bonds and Investments in debt securities (comprising term finance certificates, bonds, sukuk certificates
Sukuk certificates and any other security issued by a company or a body corporate for the purpose of raising
funds in the form of redeemable capital) are valued on the basis of the rates announced by
the Mutual Funds Association of Pakistan (MUFAP) in accordance with the methodology
prescribed by the Securities and Exchange Commission of Pakistan. In the determination of
the rates, MUFAP takes into account the holding pattern of these securities and categorises
them as traded, thinly traded and non-traded securities.
Units of mutual funds Fair values of investments in units of mutual funds are determined based on redemption
prices as at the close of the business day.
Operating fixed assets Land and buildings are revalued on a periodic basis using professional valuers. The valuation
(land and building) is based on their assessment of the market value of the assets. The effect of changes in the
unobservable inputs used in the valuations cannot be determined with reasonable certainty.
Accordingly, a qualitative disclosure of sensitivity has not been presented in these financial
statements. During the current year the Bank has revisited its estimate in respect of useful
life of certain assets as refered to in note 3.5.

42.2 The following table presents the changes in level 3 items for the years ended 31 December 2017 and 31 December 2018
for recurring fair value measurements:
Building on
Freehold Leasehold Building on
leasehold Total
land land freehold land
land
Opening balance 01 January 2017 936,055 186,967 100,117 1,566,419 2,789,558

Acquisitions - - 22,772 28,570 51,342
Amounts recognised in the profit or loss for
depreciation and impairment - - (9,899) (197,334) (207,233)
Gains recognised in “surplus on revaluation
of fixed assets” 319,915 162,080 26,478 1,037,961 1,546,434
Other adjustments / Transfers - - - (47) (47)
Closing balance 31 December 2017 1,255,970 349,047 139,468 2,435,569 4,180,054
Acquisitions 77,310 - 7,551 2,946 87,807

Amounts recognised in the profit or loss as
depreciation and impairment - - (6,103) (113,113) (119,216)
Other adjustments / Transfers (291) (291)
Closing balance 31 December 2018 1,333,280 349,047 140,916 2,325,111 4,148,354
43 SEGMENT INFORMATION
43.1 Segment details with respect to business activities
-------------------------------------- 2018 --------------------------------------

Retail Trading and
Corporate Others Total
Banking Sales
Profit and loss
Net mark-up / return / profit (4,231,320) 7,224,561 4,324,875 (365,123) 6,952,993
Inter segment revenue - net 8,956,207 (5,792,017) (4,342,336) 1,178,146 -
Non mark-up / return / interest income 1,463,187 527,781 1,248,688 20,515 3,260,171
Total income 6,188,074 1,960,325 1,231,227 833,538 10,213,164
Segment direct expenses 4,740,093 526,104 127,375 1,986,011 7,379,583

Inter segment expense allocation 177,206 14,259 543 (192,008) -
Total expenses 4,917,299 540,363 127,918 1,794,003 7,379,583
Provisions (239,041) 167,969 - - (71,072)
Profit before tax 1,509,816 1,251,993 1,103,309 (960,465) 2,904,653
-------------------------------------- 2018 --------------------------------------

Retail Trading and
Banking Sales
Balance sheet
Cash and bank balances 22,442,221 4,093,797 663,273 - 27,199,291
Investments - 5,215,640 141,429,893 - 146,645,533
Net inter segment lending 149,543,975 - (168,866,896) 19,322,921 -
Lendings to financial institutions - - 3,921,270 - 3,921,270
Advances - performing 59,853,313 123,579,222 - - 183,432,535
Advances - non-performing 2,338,789 703,859 - - 3,042,648
Others 2,732,014 2,891,493 2,200,292 10,432,712 18,256,511
Total assets 236,910,312 136,484,011 (20,652,168) 29,755,633 382,497,788
Borrowings 7,555,688 4,921,558 69,485,671 - 81,962,917

Subordinated debt - - - 6,996,400 6,996,400
Deposits and other accounts 224,726,718 37,652,043 - - 262,378,761
Net inter segment borrowing - 90,821,874 (90,821,874) - -
Others 4,627,906 3,088,536 684,035 4,770,359 13,170,836
Total liabilities 236,910,312 136,484,011 (20,652,168) 11,766,759 364,508,914
Equity - - - 17,988,874 17,988,874
Total equity and liabilities 236,910,312 136,484,011 (20,652,168) 29,755,633 382,497,788

-------------------------------------- 2018 --------------------------------------
Retail Trading and
Banking Sales
Contingencies and commitments
In respect of letter of credit / guarantees 24,119,784 16,617,566 - - 40,737,350
In respect of forward foreign exchange contracts - - 152,359,696 - 152,359,696
In respect of forward lendings - 3,056,954 - - 3,056,954
In respect of fixed assets - - - 121,073 121,073
In respect of government securities - - 1,968,946 - 1,968,946
In respect of other contingencies - - - 2,278,386 2,278,386
Total 24,119,784 19,674,520 154,328,642 2,399,459 200,522,405
------------------------------------------ 2017 ------------------------------------------

Retail Trading and
Banking Sales
Profit and loss
Net mark-up / return / profit (3,871,277) 5,468,735 5,099,111 (224,487) 6,472,082
Inter segment revenue - net 7,972,162 (4,320,827) (4,717,223) 1,065,888 -
Non mark-up / return / interest income 1,096,769 229,164 2,110,633 19,548 3,456,114
Total income 5,197,654 1,377,072 2,492,521 860,949 9,928,196
Segment direct expenses 4,438,564 452,469 171,083 1,941,014 7,003,130

Inter segment expense allocation 113,285 8,054 725 (122,064) -
Total expenses 4,551,849 460,523 171,808 1,818,950 7,003,130
Provisions (158,292) 252,388 - (16,593) 77,503
Profit before tax 804,097 664,161 2,320,713 (941,408) 2,847,563
------------------------------------------ 2017 ------------------------------------------

Retail Trading and
Banking Sales
Balance Sheet
Cash and bank balances 16,878,686 2,722,202 981,383 - 20,582,271
Investments - 4,473,007 112,955,509 - 117,428,516
Net inter segment lending 136,805,652 - (153,504,159) 16,698,507 -
Lendings to financial institutions - 4,067,205 2,435,482 - 6,502,687
Advances - performing 53,016,274 109,472,812 - - 162,489,086
Advances - non-performing 966,106 837,723 - - 1,803,829
Others 3,393,809 4,172,039 1,834,877 7,012,181 16,412,906
Total assets 211,060,527 125,744,988 (35,296,908) 23,710,688 325,219,295
Borrowings 7,570,310 3,788,102 53,225,824 - 64,584,236

Subordinated debt - - - 2,997,600 2,997,600
Deposits and other accounts 196,280,660 31,023,440 - - 227,304,100
Net inter segment borrowing - 88,655,811 (88,655,811) - -
Others 7,209,557 2,277,635 133,079 2,208,489 11,828,760
Total liabilities 211,060,527 125,744,988 (35,296,908) 5,206,089 306,714,696
Equity - - - 18,504,599 18,504,599
Total equity and liabilities 211,060,527 125,744,988 (35,296,908) 23,710,688 325,219,295

------------------------------------------ 2017 ------------------------------------------
Retail Trading and
Banking Sales
Contingencies and Commitments
In respect of letter of credit /guarantees 23,005,212 12,621,726 - - 35,626,938
In respect of forward foreign exchange contracts - - 61,341,623 - 61,341,623
In respect of forward lendings 10,654,182 10,654,182
In respect of fixed assets 666,359 666,359
In respect of government securities - - - - -
In respect of other contingencies - - - 2,774,677 2,774,677
Total 23,005,212 23,275,908 61,341,623 3,441,036 111,063,779
43.1.1 The operations of the Bank are currently based only in Pakistan, therefore, geographical segment is not relevant.
44 TRUST ACTIVITIES
The Bank commonly acts as a trustee and in other fiduciary capacity that results in the holding or placing of assets on behalf of
individuals, trusts, retirement benefit plans and other institutions. These are not the assets of the Bank and, therefore, are not included
in the Statement of Financial Position. The following is the list of assets held under trust:
Category Type No. of IPS accounts Face Value

2018 2017 2018 2017
----- (Rupees in ‘000) -----
Asset Management Companies Ijarah Sukuk 3 years 1 3 1,000 19,000

Asset Management Companies MTB 3 months 2 - 500,000 -
Employee Funds / NGO’s PIB 3 years 1 1 133,500 170,500
Employee Funds / NGO’s PIB 5 years 1 - 58,000 -
Employee Funds / NGO’s PIB 10 years 3 - 560,000 -
Employee Funds / NGO’s MTB 6 months - 2 - 160,000
Individuals MTB 3 to 6 months 5 1 35,500 10,100
Individuals PIB 5 years 1 1 5,000 5,000
Corporate MTB 3 months 1 1 500,000 3,150,000
Corporate PIB 5 years - 1 - 12,000
Staff retirement funds - related parties PIB 15 to 20 years 2 2 18,000 18,000
19 16 1,826,400 3,600,000
45 RELATED PARTY TRANSACTIONS
The Bank has related party transactions with its related group companies, major shareholders, staff retirement funds, directors and their
close family members (including their associates) and key management personnel.
The Bank enters into transactions with related parties in the ordinary course of business and on substantially the same terms as for
comparable transactions with person of similar standing. Contributions to and accruals in respect of staff retirement benefits and other
benefit plans are made in accordance with the actuarial valuations / terms of the contribution plan as disclosed in notes 39 and 40.
Remuneration to the executives / officers is determined in accordance with the terms of their appointment and is disclosed in note 41
to the financial statements.

Details of transactions with related parties during the year, other than those which have been disclosed elsewhere in these financial
statements are as follows:
-------------------- 2018 -------------------- -------------------- 2017 --------------------

Key Key
Other related Other related
Particulars Directors management Directors management
parties parties
personnel personnel
--------------------------------------- (Rupees in ‘000) ---------------------------------------
Statement of financial position
Investments
Opening balance - - 240,000 - - 200,000
Investment made during the year - - 50,005 - - 140,000
Investment redeemed / disposed during the year - - (30,737) - - (100,000)
Closing balance - - 259,268 - - 240,000
Advances
Opening balance 3,500 111,729 - 4,000 167,260 -
Addition during the year 500 85,361 - 500 31,580 -
Repaid during the year (1,000) (33,235) - (1,000) (41,696) -
Transfer in / (out) - net - 5,721 - - (45,415) -
Closing balance 3,000 169,576 - 3,500 111,729 -
Other assets
Interest / mark-up accrued 167 - - 187 - -
Other receivable
against E-banking settlement - - 115,100 - - 387,365
against investment - - 50,000 - - 50,000
Deposits and other accounts

Opening balance 235,344 46,327 4,323,175 419,458 111,243 2,597,829
Received during the year 1,196,771 380,449 76,961,727 1,363,117 360,800 64,970,100
Withdrawn during the year (1,184,988) (375,081) (76,291,696) (1,547,590) (334,961) (63,222,620)
Transfer in / (out) - net - (25,991) - 359 (90,755) (22,134)
Closing balance 247,127 25,704 4,993,206 235,344 46,327 4,323,175
Other liabilities
Interest / mark-up payable 2,204 98 41,278 2,338 - 557
Contingencies and Commitments

Guarantees - - 2,287 - - -
Profit and loss account
Income
Mark-up / return / interest earned 252 10,192 - 289 8,022 -
Fee and commission income 41 136 257 34 68 292
Expense
Mark-up / return / interest paid 13,756 1,208 210,376 21,022 1,403 188,449
Rent expense - - 10,863 - - 10,229
ATM and ADC charges - - 11,036 - - 3,664

2018 2017
--------- Rupees in ‘000 ---------
46 CAPITAL ADEQUACY, LEVERAGE RATIO & LIQUIDITY REQUIREMENTS
Minimum Capital Requirement (MCR):

Paid-up capital (net of losses) 11,024,636 11,024,636
Capital Adequacy Ratio (CAR):

Eligible Common Equity Tier 1 (CET 1) Capital 15,359,095 15,962,599
Eligible Additional Tier 1 (ADT 1) Capital 3,082,678 -
Total Eligible Tier 1 Capital 18,441,773 15,962,599
Eligible Tier 2 Capital 4,995,354 4,722,366
Total Eligible Capital (Tier 1 + Tier 2) 23,437,127 20,684,965
Risk Weighted Assets (RWAs):

Credit Risk 133,719,523 136,884,780
Market Risk 8,246,679 8,125,988
Operational Risk 17,422,308 16,960,088
Total 159,388,510 161,970,856
Common Equity Tier 1 Capital Adequacy ratio 9.64% 9.86%

Tier 1 Capital Adequacy Ratio 11.57% 9.86%
Total Capital Adequacy Ratio 14.70% 12.77%
Notional minimum capital requirements prescribed by SBP:

CET1 minimum ratio 6.00% 6.00%
Tier 1 minimum ratio 7.50% 7.50%
Total capital minimum ratio 11.90% 11.275%
Leverage Ratio (LR):

Eligiblle Tier-1 Capital 18,441,773 15,962,599
Total Exposures 515,189,170 381,613,348
Leverage Ratio - percentage 3.58% 4.18%
Liquidity Coverage Ratio (LCR):

Total High Quality Liquid Assets 107,190,086 91,189,257
Total Net Cash Outflow 92,037,670 60,989,515
Liquidity Coverage Ratio - percentage 116.46% 149.52%
Net Stable Funding Ratio (NSFR):

Total Available Stable Funding 204,605,129 187,165,669
Total Required Stable Funding 164,874,965 137,152,075
Net Stable Funding Ratio - percentage 124.10% 136.47%

46.1 The Bank follows the below mentioned approach for determining credit risk, market risk and operational risk exposures in the capital
adequacy calculation:
Risk Type Approach adopted by Bank

Credit Risk Standardized Approach
Market Risk Standardized Approach
Operational Risk Basic Indicator Approach
46.2 Capital Management
The Bank’s policy is to maintain a strong capital base so as to maintain investor, depositor, creditor and market confidence and to sustain
future development of the business, while providing adequate returns to shareholders.
The SBP sets and monitors capital requirements for the Bank as a whole. The SBP, through BSD Circular No. 07 dated 15 April 2009
has required that Banks should maintain a minimum paid-up capital of Rs. 10 billion (net of accumulated losses). The paid-up capital of
the Bank as at 31 December 2018 stood at Rs 11.025 billion (2017: Rs. 11.025 billion) and is in compliance with the SBP requirements.
The Bank is also required to maintain the following minimum Capital Adequacy Ratios (CAR) as at 31 December 2018:
- Common Equity Tier 1 (CET1) ratio of 7.90% including Capital Conservation Buffer (CCB) of 1.90%
- Tier 1 ratio of 9.40% including CCB of 1.90%
- Total Capital Adequacy Ratio (CAR) of 11.90% including CCB of 1.90%
The Bank and its individually regulated operations have complied with all capital requirements throughout the year.
The Bank’s regulatory capital is classified as follows:
- Tier 1 capital comprises of Common Equity Tier 1 (CET 1) and Additional Tier 1 (AT 1) capital.
- CET1 capital includes fully paid-up capital, balance in share premium account, reserves (excluding foreign exchange
translation reserves) and unappropriated profits meeting the eligibility criteria.
- AT 1 capital includes instruments meeting the prescribed SBP criteria e.g. perpetual non-cumulative preference
shares or term finance certificates.
- Tier 2 capital includes general provisions for loan losses, surplus on revaluation of fixed assets and investments, foreign exchange
translation reserves and subordinated debts (meeting the eligibility criteria).
Banking operations are categorised as either trading book or banking book, and risk-weighted assets are determined according to
specified requirements that seek to reflect the varying levels of risk attached to on and off-balance sheet exposures.
- On and off-balance sheet exposures in the banking book are segregated into various asset classes for the calculation
of credit risk. Ratings for assets reflecting the credit worthiness of counterparties are applied using various External
Credit Assessment Institutions (ECAIs) and aligned with appropriate risk buckets. Collateral, if any, is used as an
outflow adjustment. Risk weights notified, are applied to arrive at net adjusted exposure. Eligible collateral used
includes Government of Pakistan guarantees for advances, investments in GOP / PSE, bank guarantees, deposits /
margins, lien on deposits and saving certificates.
- The Bank calculates capital requirements for market risk in its trading book based on the methodology provided by
the SBP which takes account of specific and general market risk, capital charge for interest rate risk using the maturity
method, foreign exchange risk and equity position risk.
46.3 The full disclosures on the capital adequacy, leverage ratio and liquidity requirements as per SBP instructions issued from time to time
shall be placed on the website. The link to the full discloures shall be short and clear and be provided within this note such as, The link
to the full disclosure is available at https://www.soneribank.com/wp-content/uploads/2019/03/additional information.pdf
47 RISK MANAGEMENT
The primary goal of risk management is to identify, assess and monitor risks inherent in the activities of the Bank and take adequate
measures to manage and control these risks on a timely basis. This will help in achieving sustainable business growth, financial and non-
financial targets with better protection and soundness. The Bank’s aim is to achieve an appropriate balance between risk and return and
to minimise potential adverse effects on the Bank’s financial performance.

The Bank’s risk management framework encompasses the culture, processes and structure and is directed towards the effective
management of potential opportunities and threats to the Bank. The prime objective of the Bank’s risk management strategy is to
abandon the traditional approach of ‘managing risk by silos’ and to put in place integrated risk and economic capital management
capabilities that will enable the Bank to achieve integrated view of risks across its various business operations and to gain strategic
advantage from its risk management capabilities.
The Board of Directors (BOD) keeps an oversight on the Bank-wide risk management framework and approves the risk management
strategy and policies of the Bank. The Board Risk Management Committee (BRMC), ensures that the Bank maintains a complete and
prudent integrated risk management framework at all times and ensures that the risk exposures are maintained within acceptable levels.
Moreover, the Credit Risk Management Committee (CRMC), Market Risk Management Committee (MRMC) and the Operational Risk
Management Committee (ORMC) and all other senior management committees are mainly responsible for ensuring the compliance of
the BOD approved risk management policy and for monitoring and managing risk levels in relevant areas of the Bank.
The Bank’s risk management policy, formulated on regulatory guidelines, covers all major types of risk that the Bank is exposed to.
The policy is laid down on key risk management principles which includes management oversight and control culture, risk recognition
and assessment, control activities and segregation of duties, information and communication and monitoring activities and correcting
deficiencies.
Board of Directors
Approves risk management strategy

and policy
Board Audit Committee Board Risk Management Committee Board Credit Committee Shari’ah Board
Considers the adequacy & effectiveness of Internal • Reviews risk profile
Control framework The committee The Shari’ah Board ensures that all the
• Reviews RM strategies, policies systems and procedures reviews lending procedure manuals, product programs
• Ensures Credit, Market, Liquidity, Operational & other risk policies, procedures / structures, process flows, related
are maintained at an acceptable level & establishes agreements, marketing
C strategy to strengthen advertisements, sales illustrations and
& monitor the loan brochures are in conformity with the
portfolio rules and principles of Shari’ah.
Assessment & Monitoring President & CEO Asset Liability Committee

• Monitors Liquidity Risk;
Credit Risk Mangement Committee
• Monitors interest rate risk;
• Ensures implementation of CRM
policy/strategy; • Develops strategies to manage Liquidity
• Ensures compliance with regulatory needs in view of current economic political
requirements & internal policies and situation;
compliance with limits respect to credit;
• Regulates structure / composition of assets
• Reviews and assesses the credit portfolio & liabilities and decide pricing & advances.
structure;
• Analyzes market, conditions and economic
sectors in which the Bank has exposure or Operation Risk Management Committee
is willing to take exposure;
• Reviews and analyzes NPLs portfolio; • Reviews Operational Risk Management
Framework and ensures its compliance;
• Ensures adequacy of credit assessment
and monitoring mechanism; • Assesses the effectiveness and efficiency of
• Assesses adequacy of credit risk rating / internal controls environment of the Bank;
scoring systems of the Bank.
• Monitors Bank-wide operational risks;
• Ensures adequacy of capital with respect to
Market Risk Management Committee required operational risk charge;
• Monitors and ensures compliance with regulatory • To conduct risk and control assessment
and internal policies covering foreign exchange risk, exercise for processes / products / systems.
interest rate risk, equity price risk, and liquidity risk;
• Reviews the profitability objectives and investment BCP Steering Committee
strategies;
• Establishes business continuity plan and
• Discusses and/or devise strategies to mitigate risks ensures its effective implementation;
and ensures optimum level of risk-return relationship
is maintained. • Ensures the protection and availability of
critical business processes and supporting
technology in case of crises;
Investment Committee • Sponsors the execution and maintenance
of risk assessment business impact
To manage Capital Market risk analysis, crises recovery plans and
Executive Director & COO training programs;
• Ensures the adequacy of plans;

• Ensures that alternate sites and/or spaces
Risk Management Division are available for critical process;
• Develops risk framework / policies & procedures for management of • Ensures that proper training sessions are
Credit Market, Liquidity, Operational and other inherent risks; conducted.
• Development of system & procedures for identification assessment,
monitoring & control of Credit, Market, Liquidity, Operational and other
inherent risks;
• Monitoring of risk on a portfolio basis.
Assurance C
Internal Audit Compliance

• Assesses the adequacy of Risk Management processes • Ensures compliance with all statutory and regulatory requirements
• Assesses the adequacy of Internal Control Framework • Ensures compliance with Bank’s policies

The Bank has a well-established risk management structure, with an active Board of Directors and Board Risk Management Committee
supported by an experienced senior management team and a centralised risk management group which is independent of the business lines.
RISK MANAGEMENT FUNCTION

BOD / BRMC
President & CEO
Executive Director & COO
Head of Risk Management Division
Credit Risk Operational Risk / Market & Liquidity Risk Analytics & Basel II / III
Management / BCP Management Risk Management Economic Capital Implementation &
Review Department Department / Treasury Department Policy Review
Department Middle Office Department
The Bank has undertaken a number of initiatives in the areas of assessment, measurement and monitoring of credit risk, market risk,
funding liquidity risk and operational risk. These measures are providing competitive advantage to the Bank besides preparing the Bank
for the full implementation of Basel-III.
47.1 Credit risk
Credit risk is a risk arising from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform is
impaired resulting in financial loss to the Bank. Credit risk mainly arises from all placement of deposits, lending and investing activities i.e.
transactions that give rise to actual, contingent or potential claims against any counterparty, borrower or obligor.
Credit Risk Management Objectives and Organisation
Lending of money is the core business activity, a major source of revenue and a significant exposure for the Bank. Lendings are mainly
funded from depositors’ money. Therefore, in order to protect the stakeholders’ wealth, the Bank has deployed considerable resources
and adequate controls to manage, monitor and control credit risk throughout the Bank.
The main objective of the credit risk management process is to identify, assess, measure and monitor credit risk in all the financial
exposures of the Bank. The Bank has established a rigorous credit risk management framework to timely and effectively manage credit risk
at transaction as well as at portfolio level. In addition to this, the Enterprise Risk Management (ERM) solution of SAS provides information
/ analysis in making better credit decisions, measured risk-taking, better loan pricing and efficient capital allocation thereagainst thus
resulting in efficient and effective use of funds and increase in profitability of the Bank.
The Bank has an organisational structure for managing credit risk, established on internal control environment and equipped with
adequate level of expertise and resources.
CREDIT RISK MANAGEMENT STRUCTURE
Board of Directors
Board Credit Committee Board Risk Management Committee
President & CEO
Credit Risk Management Head of Risk

Committee Management Division
Executive Credit Committee
Credit Risk Credit Risk

Credit Division
Management Department Review Department
Credit Corporate, ME, SE, Consumer Risk

Credit Policy and Credit Approval and Agriculture Risk Review Review
Credit manual Monitoring Administration

Credit Approval Authorities and Credit Standards
The Board of Directors has delegated lending powers to different tiers of credit approving authorities, constituted at central and regional
levels. Extension of credit is executed, in strong internal control environment, in the light of the Bank’s credit policies and procedures and
regulatory requirements.
Credit Portfolio Management
Besides managing credit risk at transaction level, the Bank regularly monitors credit risk at portfolio level and ensures that no undue
concentration of risk is present in the overall credit exposure at Bank level. The Bank has a well established and rigorous management
information set-up which allows efficient and effective assessment, monitoring and management of its credit risk profile in various
dimensions.
Credit Risk Rating
The Credit risk Rating System provides solid grounds for the assessment and measurement of credit risk against each obligor in
addition to fulfilling regulatory requirements. The SAS based Internal Obligor Risk Rating System for Agriculture, Corporate, ME/SE and
Consumer borrowers has been approved by the BoD of the Bank. This rating system is an empirical risk rating system which will help
to assess the Probability of Default (PD) of these obligors; risk based pricing, risk diversification and portfolio management as per the
requirements of SBP / Basel Accords and also has the capability to track historical defaults and loss experiences.
These Credit Risk Rating Systems are now incorporated with Bank’s Credit Approval Processing Systems (CAPs) for its Corporate, ME/
SE and Consumer borrowers; resultantly this facility reduces the TAT in Credit Risk Review process and approvals and establishes a
single platform for initiation and monitoring the Bank’s portfolio.
The ORR assigns risk grades to customers, in accordance with the regulatory requirements, in twelve grades, out of which top nine
grades refer to regular customers whereas remaining three grades pertain to defaulted ones. Whereas, FRR assigns each loan facility in
six categories, in accordance with regulatory requirements. Business Units assign credit risk rating to every customer and loan facility as
an integral part of the Bank’s credit approval process.
Credit Risk Management Policy
A sound credit risk management framework forms part of the overall business strategy and credit operations of the Bank. The principles
for credit risk management have been laid down in the Bank’s credit policy, credit manual, and credit risk procedural manual. The policy
has been developed in accordance with the requirements of the State Bank of Pakistan and is reviewed and updated (where required)
on a periodic basis.
Credit Risk Assessment
The Bank has a well established and rigorous pre-approval evaluation process of credit risk embedded in credit transaction executed by
the Business Units. The entire process broadly encompasses, gathering relevant information on the borrower, credit investigations and
visits, detailed credit appraisal and credit risk assessment / measurement.
Credit Risk Limit Structure
In addition to monitoring credit limits specified in the Prudential Regulations of the State Bank of Pakistan, the credit limit structure of the
Bank includes internal limits as established by the senior management and the BOD. Internal limits include limits with respect to BOD
approved risk appetite, industry / sector, credit approval authority, large exposures limits, linkage ratio limits for corporate borrowers,
exposure with banks and NBFIs, exposure with insurance companies and foreign countries. All these limits are monitored on a regular
basis and any exceptions are reported to the relevant authorities for their timely action where necessary.
Collateral
Collateral act as mitigants in case of default by the borrower. Therefore, most of the facilities extended by the Bank are backed by
appropriate and quality collaterals. Similarly, lendings to financial institutions and DFIs are backed by securities viz., Treasury Bills and
Pakistan Investment Bonds. Clean facilities are provided, under strict control environment, only to the extent permissible under the
Prudential Regulations of the State Bank of Pakistan. The credit manual of the Bank contains list of approved collaterals that the Bank
can take and internal control standards for the management of collaterals obtained against credit facilities.

Early Warning System
The Bank has an effective early warning system which enables the Business Units / credit managers / credit administration personnel to
identify and report problem loans on a prompt basis. Reports are received from Business Units on a regular basis, which are escalated
to the concerned authority for necessary action on a timely basis.
Remedial Management and allowances for impairment
The Bank has standards for identification and classification of credit facilities, restructuring as well as related provisioning requirements
and write-off policy, with clear responsibilities pertaining to all processes that are required to be followed.
Non-performing loans beyond certain aging / classification category are required to be referred to Remedial Management Group (RMG)
which initiates recovery proceedings against the borrowers in accordance with the applicable laws.
Particulars of Bank’s siginificant on-balance sheet and off-balance sheet credit risk in various sectors are analysed as follows:
47.1.1 Lendings to financial institutions
Credit risk by public / private sector
Gross lendings Non-performing lendings Provision held

2018 2017 2018 2017 2018 2017
------------------------------------------ Rupees in ‘000 ------------------------------------------
Public / Government - - - - - -
Private 3,921,270 6,502,687 - - - -
3,921,270 6,502,687 - - - -
47.1.2 Investment in debt securities
Credit risk by industry sector
Gross investments Non-performing investments Provision held

2018 2017 2018 2017 2018 2017
------------------------------------------ Rupees in ‘000 ------------------------------------------
Textile 52,234 52,234 52,234 52,234 52,234 52,234

Chemical and Pharmaceuticals 63,965 120,490 7,440 7,440 7,440 7,440
Services 248,085 - - - - -
Construction 6,560 6,560 6,560 6,560 6,560 6,560
Power (electricity), Gas, Water, Sanitary 1,932,075 1,507,713 19,860 19,860 19,860 19,860
Transport, Storage and Communication - 561,210 - - - -
Financial 140,344,592 111,505,185 - - - -
142,647,511 113,753,392 86,094 86,094 86,094 86,094
Gross investments Non-performing investments Provision held

2018 2017 2018 2017 2018 2017
------------------------------------------ Rupees in ‘000 ------------------------------------------
Public / Government 140,835,167 111,705,845 - - - -

Private 1,812,344 2,047,547 86,094 86,094 86,094 86,094
142,647,511 113,753,392 86,094 86,094 86,094 86,094

47.1.3 Advances

Gross advances Non-performing advances Provision held
2018 2017 2018 2017 2018 2017
---------------------------------Rupees in ‘000--------------------------------------------
Agriculture, Forestry, Hunting and Fishing 2,954,115 3,343,280 190,437 198,471 157,411 161,247
Food and Allied 52,744,361 56,128,536 787,583 769,317 298,684 431,175
Textile 32,951,049 32,260,342 6,148,322 6,425,239 5,437,884 5,620,351
Chemical and Pharmaceuticals 5,581,578 4,987,323 570,410 620,343 533,250 540,864
Cement 2,189,801 2,040,717 - - - -
Sugar 5,825,569 5,006,715 85,704 85,704 85,704 85,704
Footwear and Leather garments 1,384,893 1,488,759 76,521 33,466 76,521 29,183
Automobile and transportation equipment 1,425,438 637,260 13,510 13,510 13,510 13,510
Electronics and electrical appliances 3,085,517 2,526,903 64,214 64,464 64,214 58,467
Construction 4,606,404 1,315,202 36,067 38,264 34,726 37,167
Power (electricity), Gas, Water, Sanitary 25,833,620 11,073,435 149,871 166,121 149,871 149,871
Wholesale and Retail Trade 15,277,029 16,324,104 360,426 359,061 178,190 156,460
Exports/Imports 8,903,912 7,580,706 213,250 93,104 84,933 87,112
Financial 1,488,929 1,430,231 138,959 215,947 138,959 215,947
Services 7,774,723 8,238,196 422,063 512,898 297,883 389,014
Individuals 7,711,834 7,840,012 139,616 93,165 70,584 63,405
Education 1,648,882 473,764 - - - -
Iron & Steel 5,601,775 3,849,128 356,225 262,971 181,963 147,119
Paper & Printing 1,635,406 660,984 100,538 101,090 100,538 100,034
Plastic Products 1,500,142 1,137,496 257,848 58,385 15,648 57,946
Ship Breaking 2,573,619 2,989,360 1,123,746 - 288,546 -
Others 2,132,609 1,439,977 121,822 133,149 105,465 96,264
194,831,205 172,772,430 11,357,132 10,244,669 8,314,484 8,440,840
Gross advances Non-performing advances Provision held

2018 2017 2018 2017 2018 2017
---------------------------------Rupees in ‘000--------------------------------------------
Public/ Government 61,447,095 57,328,349 - - - -

Private 133,384,110 115,444,081 11,357,132 10,244,669 8,314,484 8,440,840
194,831,205 172,772,430 11,357,132 10,244,669 8,314,484 8,440,840

47.1.4 Contingencies and Commitments 2018 2017
--------- Rupees in ‘000 ---------
Agriculture, Forestry, Hunting and Fishing 73,351 179,161
Food and Allied 6,730,238 5,497,371
Textile 4,605,311 3,163,650
Chemical and Pharmaceuticals 2,329,627 2,044,122
Cement 1,762,543 1,009,178
Sugar 394,216 53,508
Footwear and Leather garments 129,023 151,152
Automobile and transportation equipment 741,419 921,892
Electronics and electrical appliances 1,978,209 1,585,564
Construction 2,768,186 2,952,526
Power (electricity), Gas, Water, Sanitary 4,496,121 7,272,609
Wholesale and Retail Trade 7,204,398 5,559,668
Exports/Imports 1,679,084 1,377,229
Financial 154,900,953 63,261,396
Services 6,433,354 9,633,197
Education 104,571 104,571
Iron & Steel 1,591,983 2,614,794
Paper & Printing 462,564 221,501
Plastic Products 1,201,663 1,323,392
Ship Breaking 105,284 20,426
Others 830,307 2,116,872
200,522,405 111,063,779
Public / Government 1,877,150 4,168,345

Private 198,645,255 106,895,434
200,522,405 111,063,779
47.1.5 Concentration of advances
The Bank’s top 10 exposures on the basis of total (funded and non-funded expsoures) aggregated to Rs. 67,792 million (2017:
Rs. 63,536 million) and are as follows:
2018 2017
--------- Rupees in ‘000 ---------
Funded 65,759,617 60,715,890

Non-funded 2,032,210 2,820,595
Total exposure 67,791,827 63,536,485
The sanctioned limits against these top 10 exposures aggregated to Rs. 90,238 million (2017: Rs. 69,791 million)

Total funded classified therein 2018 2017
Provision Provision
Amount Amount
held held
OAEM - - - -
Substandard - - - -
Doubtful - - - -
Loss - - - -
Total - - - -
47.1.6 Advances - province / region-wise disbursement and utilization
2018
Utilization
Disbursements KPK including AJK including
Province / region Punjab Sindh Balochistan Islamabad
FATA Gilgit-Baltistan
Punjab 267,448,556 263,723,813 1,540,194 527,863 - 1,656,686 -

Sindh 215,995,540 1,305,120 205,349,147 - 103,673 - 9,237,600
KPK including FATA 4,092,180 58,077 - 4,034,103 - - -
Balochistan 202,415 - - - 202,415 - -
AJK including Gilgit-Baltistan 4,931,314 - - - - 4,931,314 -
Islamabad 51,181,258 3,134,360 - 3,338,633 - - 44,708,265
Total 543,851,263 268,221,370 206,889,341 7,900,599 306,088 6,588,000 53,945,865
2017
Utilization
Disbursements KPK including AJK including
Province / region Punjab Sindh Balochistan Islamabad
FATA Gilgit-Baltistan
Punjab 317,170,524 314,984,168 909,865 - - 1,276,491 -

Sindh 248,678,336 936,288 244,630,708 - 11,340 - 3,100,000
KPK including FATA 3,655,508 121,886 - 3,533,622 - - -
Balochistan 169,182 - - - 169,182 - -
AJK including Gilgit-Baltistan 5,210,102 - - - - 5,210,102 -
Islamabad 70,424,782 5,607,543 - 5,992,297 - - 58,824,942
Total 645,308,434 321,649,885 245,540,573 9,525,919 180,522 6,486,593 61,924,942
47.2 Market Risk
Market Risk is the risk of loss in earnings and capital due to adverse changes in interest rates, foreign exchange rates, equity prices
and market conditions. Thus market risk can be further described into interest rate risk, foreign exchange risk and equity position risk.
Market risk management objective and organisation
The Risk Management Framework requires that strong risk management practices are integrated in key strategic, capital and financial
planning processes and day-to-day business processes across the Bank.

The Bank has established a rigorous market risk management framework to efficiently and effectively monitor and manage market risk
in every transaction as well as at portfolio level. The Bank has made substantial investment to add value to its market risk management
framework by purchasing the license of Market Risk Management System (MRMS), part of Enterprise Risk Management (ERM) solution,
of SAS. The said solution provides adequate analysis to facilitate better investment decisions, measured risk-taking and efficient capital
allocation there against, thus, leading to efficient and effective use of funds.
The Bank has a sound organisation structure for managing market risk, established on strong internal control environment and equipped
with adequate level of expertise and resources. The Risk Management Committee (RMC), a BOD level sub-committee, is primarily
responsible to monitor and manage market risk in all the financial exposures of the Bank, supported by senior management committees
namely Asset and Liability Management Committee (ALCO) and Market Risk Management Committee (MRMC).
MARKET RISK MANAGEMENT STRUCTURE
Board of Directors
Board Risk
Management
Committee
President & CEO ALCO
Market Risk
Executive Director & COO Management
Committee
Head of Risk
Management
Division
Market Risk
Management
Department
Market Risk Monitoring
The Bank’s market risk policies set out risk management parameters, governance and control frameworks as well as reporting
arrangements for key risk indicators. The Bank has a well-established structure of internal limits with respect to its treasury and investment
operations. The Treasury Middle Office (TMO), within the Market Risk Management Department, monitors each and every transaction
executed through treasury, monitors risk limits, reports breaches, off market rates, rate reasonability against benchmark rates, tolerance
PV01 limits and assesses market risk in money market transactions, investments in equity securities, monitors impairments in equity
securities and its stop loss limit and foreign exchange transactions. In order to mitigate unnecessary risk and ensure minimum business
losses, Earmarking Policy has also been implemented to ensure risk migration from high risk to low risk transactions.
Portfolio Analysis and Management
Besides managing market risk at transaction level, the Bank regularly monitors market risk at portfolio level and ensures that no undue
concentration of risk and adverse correlation is present in the overall financial exposures at the Bank level. The Bank has a well established
management information set-up which allows efficient and effective assessment, monitoring and management of its market risk profile
in various dimensions.

Marking-to-Market
The Bank is marking-to-market (MTM) its investment in tradable and available for sale securities, i.e., equity securities, debt securities
and foreign exchange ready and forward transactions, on a regular basis. The same is independently reviewed by the Risk Management
Division.
Market Risk Assessment and Measurement
The Bank is assessing and measuring market risk in all of its financial exposures using various types of measurement and analytical
tools like Value at Risk (VaR), duration and convexity, interest rate gap and duration gap. The Bank is using Standardized Approach
for exposures in its balance sheet, to calculate market risk capital charge and risk weighted asset for Capital Adequacy Ratio (CAR)
calculation purposes.
The Bank’s principle market risk measurement methodology are VAR and stress testing. Historical financial market rates, prices and
volatility serve as the basis for the statistical VAR model underlying the potential loss estimation. The Bank uses ten days as well as
30 days holding period at 99% confidence level to model risk in different portfolios. The main assumptions and scenarios of our stress
analysis includes:
1. Parallel shift in yield curve by 2%, 3% and 4%.

2. Change in the slope of yield curve by changing short-term, medium-term and long-term maturities by different rates.
3. Penalty or reward depending on net long or net short position in foreign currency exposure.
4. Fall in general equity price upto 50%.
47.2.2 Statement of financial position split by trading and banking books
-------------------- 2018 -------------------- -------------------- 2017 --------------------

Banking Trading Banking Trading
Total Total
book book book book
--------------------------------------- Rupees in ‘000 ---------------------------------------
Cash and balances with treasury banks 26,019,679 - 26,019,679 19,431,256 - 19,431,256
Balances with other banks 1,179,612 - 1,179,612 1,151,015 - 1,151,015
Lendings to financial institutions 3,921,270 - 3,921,270 6,502,687 - 6,502,687
Investments 135,352,532 11,293,001 146,645,533 104,535,497 12,893,019 117,428,516
Advances 186,475,183 - 186,475,183 164,292,915 - 164,292,915
Fixed assets 6,238,673 - 6,238,673 6,464,678 - 6,464,678
Intangible assets 454,536 - 454,536 116,787 - 116,787
Other assets 11,220,557 342,745 11,563,302 9,529,457 301,984 9,831,441
370,862,042 11,635,746 382,497,788 312,024,292 13,195,003 325,219,295
47.2.3 Foreign exchange risk
Foreign exchange risk is the probability of loss resulting from adverse movements in exchange rates. Exchange position arising from
trading activities is monitored through foreign exchange limits on aggregate and individual currency basis. Hedging strategies and mark-
to-market valuations are used to mitigate exchange risk resulting from open position. Overall exchange position risk is maintained in
accordance with the regulatory requirements prescribed by the State Bank of Pakistan.
2018 2017
Off-balance Net Off-balance Net
Assets Liabilities Assets Liabilities
Currency sheet items exposure sheet items exposure
------------------------------------------------------- Rupees in ‘000 -------------------------------------------------------
Pakistan rupee 366,450,360 339,111,012 (9,434,638) 17,904,710 311,772,124 289,987,896 (6,038,911) 15,745,317
United States dollar 13,849,073 22,468,408 8,651,808 32,473 11,894,528 13,938,743 4,775,336 2,731,121
Great Britain pound 716,961 2,010,353 1,295,544 2,151 402,156 1,955,973 1,569,218 15,401
Japanese Yen 3,434 36 (2,143) 1,255 23,405 22,977 (504) (76)
Euro 1,303,631 903,326 (399,936) 369 899,176 746,059 (149,109) 4,008
Chinese Yuan 145,266 4,636 (101,451) 39,179 486 - - 486
Other currencies 29,062 11,143 (9,183) 8,737 227,420 63,048 (156,030) 8,342
382,497,788 364,508,914 - 17,988,874 325,219,295 306,714,696 - 18,504,599

---------- 2018 ---------- ---------- 2017 ----------
book book book book
------------------ Rupees in ‘000 ------------------
Impact of 1% change in foreign exchange rates on
- Profit and loss account - 842 - 27,593
- Other comprehensive income - - - -
47.2.4 Equity position risk
The Bank invests mainly in blue chip securities depending upon market mispricing through arbitrage. Further, the risk arising from
investments in equity securities lies in both its banking and trading books which is measured and assessed using the Value at Risk (VaR)
approach. The VaR of the portfolio is reported to the BRMC, ALCO/MRMC and other authorities on a periodical basis.
---------- 2018 ---------- ---------- 2017 ----------

book book book book
------------------ Rupees in ‘000 ------------------
Impact of 5% change in equity prices on
- Profit and loss account - - - -
- Other comprehensive income - 203,651 - 187,506
47.2.5 Interest rate risk
Interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in interest rates, including changes
in the shape of the yield curve.
Interest rate risk is inherent in the Bank’s business and arises due to the mismatches in the contractual maturities or repricing of on- and
off-balance sheet assets and liabilities. The Bank is exposed to interest rate risk in both the Trading and Banking Books. The Bank uses
duration gap models to measure and monitor the interest rate sensitivity on the potential earnings and the Bank’s economic value of
equity. Overall potential impact of the mismatches on the earnings in short term is not material and is being managed within the tolerance
limits approved by the Board.
---------- 2018 ---------- ----------2017----------

book book book book
------------------ Rupees in ‘000 ------------------
Impact of 1% change in interest rates on
- Profit and loss account 730,511 10,519 785,827 12,732
- Other comprehensive income - - - -

47.2.6 Mismatch of Interest Rate Sensitive Assets and Liabilities
Yield risk is the risk of decline in earnings due to adverse movement of the yield curve. Interest rate risk represents the risk that value of
financial instruments will fluctuate due to change in market interest rates. The Bank is exposed to yield / interest rate risk as a result of
mismatches or gaps in the amounts of assets and liabilities and off-balance sheet instruments that mature or re-price in a given period. The
Bank manages this risk by matching the re-pricing of assets and liabilities and off-balance sheet instruments. The Bank’s yield / interest rate
sensitivity position for on-balance sheet instruments is based on the earlier of contractual re-pricing or maturity date and for off-balance
sheet instruments is based on settlement date. The Bank quantifies the yield curve risk via duration, PVBP and convexity for rate sensitive
assets and liabilities held in banking and trading book. The bank also measure impact on net worth depending on duration gap of rate
sensitive assets and liabilities.
2018
Exposed to Yield/ Interest risk
Effective Non-interest
Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Total Upto 1 Above
Interest to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 financial
rate Month 10 Years instruments
Months Months Year Years Years Years Years
On-balance sheet financial instruments ----------------------------------------------------------------------------- Rupees in ‘000 -----------------------------------------------------------------------------
Assets
Cash and balances with treasury banks 0.43% 26,019,679 2,740,850 - - - - - - - - 23,278,829
Balances with other banks 4.28% 1,179,612 184,908 - - - - - - - - 994,704
Lending to financial institutions 7.08% 3,921,270 3,921,270 - - - - - - - - -
Investments 6.83% 146,645,533 31,940,426 64,835,464 14,930,851 9,881,334 9,315,447 11,552,611 - 105,283 - 4,084,117
Advances 7.80% 186,475,183 147,998,015 16,089,088 8,599,368 5,664,238 98,919 172,932 366,313 1,595,759 2,847,903 3,042,648
Other assets 0.00% 11,218,113 - - - - - - - - - 11,218,113
375,459,390 186,785,469 80,924,552 23,530,219 15,545,572 9,414,366 11,725,543 366,313 1,701,042 2,847,903 42,618,411
Liabilities
Bills payable 0.00% 3,993,525 - - - - - - - - - 3,993,525
Borrowings 5.41% 81,962,917 52,577,019 18,032,933 9,598,547 320,548 43,364 27,006 93,035 982,667 - 287,798
Deposits and other accounts 6.05% 262,378,761 81,719,291 91,889,501 12,251,452 9,685,540 373,662 256,309 - - - 66,203,006
Liabilities against assets subject to finance lease 0.00% - - - - - - - - - - -
Subordinated debt 8.74% 6,996,400 600 - 6,995,800 - - - - - - -
Other liabilities 8,992,846 - - - - - - - - - 8,992,846
364,324,449 134,296,910 109,922,434 28,845,799 10,006,088 417,026 283,315 93,035 982,667 - 79,477,175
On-balance sheet gap 11,134,941 52,488,559 (28,997,882) (5,315,580) 5,539,484 8,997,340 11,442,228 273,278 718,375 2,847,903 (36,858,764)
Non financial net assets 6,853,933

Total net assets 17,988,874
Off-balance sheet financial instruments

Documentary credits and short-term
trade-related transactions 40,737,350 7,880,038 9,744,300 6,804,501 5,780,361 1,851,905 2,696,314 2,471,614 306,629 3,201,688 -

- forward foreign exchange contracts purchase 80,729,599 15,827,504 40,523,390 24,315,291 63,414 - - - - - -
- forward foreign exchange contracts sale (71,630,097) (20,388,681) (19,961,073) (31,280,343) - - - - - - -
- forward government securities transactions 1,968,946 1,968,946 - - - - - - - - -
- forward lending 3,056,954 - - - 3,056,954 - - - - - -
- acquisition of fixed assets 81,102 - - - 81,102 - - - - - -
- acquisition of intangibles 39,971 - - - 39,971 - - - - - -
Off-balance sheet gap 54,983,825 5,287,807 30,306,617 (160,551) 9,021,802 1,851,905 2,696,314 2,471,614 306,629 3,201,688 -
Total yield/ interest risk sensitivity gap 57,776,366 1,308,735 (5,476,131) 14,561,286 10,849,245 14,138,542 2,744,892 1,025,004 6,049,591 (36,858,764)
Cumulative yield / interest risk sensitivity gap 57,776,366 59,085,101 53,608,970 68,170,256 79,019,501 93,158,043 95,902,935 96,927,939 102,977,530

2017
Effective Exposed to Yield/ Interest risk Non-interest
Yield/ Over 1 Over 3 Over 6 Over 1 Over 2 Over 3 Over 5 bearing
Total Upto 1 Above
Interest to 3 to 6 Months to 1 to 2 to 3 to 5 to 10 financial
rate Month 10 Years instruments
Months Months Year Years Years Years Years
------------------------------------------- Rupees in ‘000 -------------------------------------------
On-balance sheet financial instruments
Assets
Cash and balances with treasury banks 0.00% 19,431,256 1,586,713 - - - - - - - - 17,844,543
Balances with other banks 4.20% 1,151,015 206,419 - - - - - - - - 944,596
Lending to financial institutions 5.90% 6,502,687 3,185,507 1,250,000 2,067,180 - - - - - - -
Investments 6.27% 117,428,516 9,492,238 66,637,873 3,452,847 433,663 10,649,794 10,363,631 12,531,162 106,087 - 3,761,221
Advances 6.85% 164,292,915 127,131,437 17,287,353 8,899,907 7,425,261 34,996 187,310 336,196 904,708 281,918 1,803,829
Other assets 0.00% 9,592,514 - - - - - - - - - 9,592,514
318,398,903 141,602,314 85,175,226 14,419,934 7,858,924 10,684,790 10,550,941 12,867,358 1,010,795 281,918 33,946,703
Liabilities
Bills payable 0.00% 4,895,447 - - - - - - - - - 4,895,447
Borrowings 5.02% 64,584,236 38,560,895 12,020,383 2,752,596 10,017,014 11,600 72,269 104,841 767,389 - 277,249
Deposits and other accounts 5.17% 227,304,100 59,816,547 78,140,722 15,501,105 9,504,470 486,731 406,568 - - - 63,447,957
Liabilities against assets subject to finance lease 0.00% - - - - - - - - - - -
Subordinated debt 7.49% 2,997,600 600 - 2,997,000 - - - - - - -
Other liabilities 0.00% 5,900,921 - - - - - - - - - 5,900,921
305,682,304 98,378,042 90,161,105 21,250,701 19,521,484 498,331 478,837 104,841 767,389 - 74,521,574
On-balance sheet gap 12,716,599 43,224,272 (4,985,879) (6,830,767) (11,662,560) 10,186,459 10,072,104 12,762,517 243,406 281,918 (40,574,871)
Non financial net assets 5,788,000

Total net assets 18,504,599
Off-balance sheet financial instruments

Documentary credits and short-term
trade-related transactions 35,626,938 13,613,886 10,705,213 3,902,504 3,344,004 1,735,128 1,033,141 244,774 25,955 1,022,333 -

- forward foreign exchange contracts purchase 32,938,645 14,982,653 13,149,222 4,626,438 180,332 - - - - - -
- forward foreign exchange contracts sale (28,402,978) (10,851,025) (9,944,116) (7,604,477) (3,360) - - - - - -
- forward government securities transactions - - - - - - - - - - -
- forward lending 10,654,182 - - - 10,654,182 - - - - - -
- acquisition of fixed assets 563,192 - - - 563,192 - - - - - -
- acquisition of intangibles 103,167 - - - 103,167 - - - - - -
Off-balance sheet gap 51,483,146 17,745,514 13,910,319 924,465 14,841,517 1,735,128 1,033,141 244,774 25,955 1,022,333 -
Total yield / interest risk sensitivity Gap 60,969,786 8,924,440 (5,906,302) 3,178,957 11,921,587 11,105,245 13,007,291 269,361 1,304,251 (40,574,871)
Cumulative yield / interest risk sensitivity Gap 60,969,786 69,894,226 63,987,924 67,166,881 79,088,468 90,193,713 103,201,004 103,470,365 104,774,616
(a) The effective interest rate is a historical rate (for December month) for a fixed rate instrument carried at amortised cost and a current
market rate for a floating rate instrument.
(b) The effective interest rate has been computed by excluding non-performing advances.
(c) The effective interest rate has been computed by excluding non-remunerative deposits.
47.2.7 Liquidity risk
Liquidity risk is the potential inability to meet contractual and contingent financial obligations, either on or off balance sheet, as they become
due. Primary liquidity objective of the Bank is to provide adequate funding for businesses throughout market cycles, including periods of
financial stress.
Liquidity Management
Day to day funding, is managed by treasury division through net cash flows from payment systems, fresh deposits mobilised by branches,
maturing money market deposits, etc.

The Bank maintains a portfolio of highly marketable assets viz., Market Treasury Bills and Pakistan Investment Bonds, that can either
be sold in the open market or funds can be arranged there against under repo arrangements. This is further supported by investments
in short term securities viz., Certificate of Investments etc. In line with its liquidity risk management policy, the Bank maintains a cushion
over and above the minimum statutory liquidity requirement prescribed by SBP for maintaining liquidity reserves to ensure continuity of
cash flows.
Liquidity risk monitoring
The Bank monitors its liquidity risk through various liquidity ratios and liquidity risk indicators and any deviations or breaches are reported
to the relevant authorities for timely action. Moreover, Asset and Liability Management Committee (ALCO), a senior management
committee, also reviews the liquidity position of the Bank on at least monthly basis and takes appropriate measures where required.
Liquidity risk assessment
The Bank uses liquidity gap ladder to assess the liquidity gaps and liquidity needs in different time buckets, under normal and stressed
scenarios. Whereas, the Contingency Funding Plan (CFP) of the Bank is also tested on the basis of the results of liquidity stress testing.
Sources of liquidity are regularly reviewed / monitored by the Asset and Liability Management Committee (ALCO). The ALCO reviews the
current economic situation, projected cash flows and asset / liability mix and approves strategy for managing appropriate liquidity. The
liquidity risk management policy of the Bank encompasses liquidity contingency plan for actions to be taken in case of liquidity crises.
Mandatory stress tests of SBP are conducted, on a periodic basis, to test the adequacy of liquidity contingency plan and to identify the
extent of liquidity stress that the Bank is able to take in current conditions.
Liquidity management framework allows the Bank to run stress analysis on the balance sheet and off-balance positions, which include,
but are not limited to, the following:
1. Significant withdrawals from corporate clients deposits.

2. Withdrawal of top ten, top fifteen, and top twenty deposits.
3. Loss in the funding value of unencumbered assets.
4. Availability of secure lending is subject to significant over collateralisation.
47.2.8 Operational risk
Operational risk ‘OpRisk’ is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or
external events. This includes legal risk as well as the reputational consequences of failures in operational risk management. The Bank
uses Basic Indicator approach for assessing capital charge for operational risk.
Operational Risk Management Objective and Organisation
OPERATIONAL RISK MANAGEMENT STRUCTURE
Board of Directors
Board Risk Management Committee
Operational Risk President & CEO BCP Streering Committee

Management Committee
Head of Risk Management

Division
Operational Risk Management

Department

The main objective of the operational risk management is to minimise expected and unexpected losses arising out of operational
activities of the Bank.
The Bank has established a rigorous operational risk management framework to efficiently and effectively monitor and manage
operational risk in each business and support activity of the Bank as well as those arising from external events like from natural disasters,
outsourcing, etc.
The Bank has a sound organisation structure for managing operational risk, established on strong internal control environment and
equipped with adequate level of expertise and resources. The Bank has also formed an Operational Risk Management Committee
(ORMC), a senior management committee to assist the Board Risk Management Committee (RMC), to ensure the compliance of BoD
approved operational risk management framework, supported by the Risk Management Division (RMD).
Operational risk assessment
The Bank has been conducting risk and control self assessment (RCSA) exercise for each business and support function of the Bank
in order to identify and assess operational risks inherent in existing activities, processes and systems. Through the RCSA exercise, the
Bank has been able to develop inventory of risks, controls and key risk indicators (KRI) and has identified gaps in its operating activities
which are rectified on a priority basis.
Operational risk monitoring
Operational risk monitoring is conducted through KRIs, identified in the RCSA exercise for each process. All branches, offices, divisions
/ departments furnish KRI reports on a periodical basis to the Operational Risk Management Department (within the Risk Management
Division).
Operational risk measurement
The Bank keeps a detailed track of its operational loss events and maintains a database. This helps the Bank to step towards advanced
approach of Basel II accord and also allows the Bank to formulate strategy to rectify the gap of reoccurrence of the incident. The Bank
has, in compliance of BPRD Circular No. 04 of 2014 “Implementation of Operational Risk Management Framework” created separate
Op-Loss general ledgers in the Bank’s system which are being used for reporting of operational losses and are bifurcated into 7
operational loss categories as per the requirement of Basel II accord. The Bank also gathers external loss events occurring in the banking
industry and designs strategies to prevent occurrence of similar incidents in the Bank.
Operational risk assessment for new products and services
Operational risk in all new products, systems and processes are identified and assessed by the RMD so that risk associated can be
mitigated to an acceptable level. Assessment comprises of:
- review of new process flows and their control activities;
- conduct RCSA exercise; and
- identification, adequate assessment and ranking of all risks and controls.
Business Continuity Plan
In order to ensure continuity of the Bank’s operations, the Bank has in place a well developed, BoD approved Business Continuity Plan
(BCP) which has been implemented across the Bank. The BCP has been well communicated down the line and regular trainings and
testing is conducted across the country. Permanent back up sites have also been established and related testing carried out by critical
staff to their designated back up sites. The BCP Steering Committee, a senior management committee, is responsible to ensure the
adequacy of the BCP of the Bank as well as to ensure its effective implementation and compliance. The committee reports to the Board
Risk Management Committee.

47.2.9 Maturities of Assets and Liabilities - based on contractual maturity of the assets and liabilities of the Bank
-------------------------------------------------------------------------------------------------- 2018 --------------------------------------------------------------------------------------------------

Over 9
Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5
Total Upto 1 Day months to 1
days days to 1 Month Months Months Months Months years years Years Years
year
-------------------------------------------------------------------------------------------- Rupees in ‘000 --------------------------------------------------------------------------------------------
Assets
Cash and balances
with treasury banks 26,019,679 26,019,679 - - - - - - - - - - - -
Balances with other banks 1,179,612 1,179,612 - - - - - - - - - - - -
Lending to financial institutions 3,921,270 - 3,921,270 - - - - - - - - - - -
Investments 146,645,533 - 31,812,111 28,262 100,052 64,430,953 41,612 15,911,621 3,635,995 6,438,904 10,068,900 11,929,297 755,188 1,492,638
Advances 186,475,183 88,192,742 1,627,691 1,578,847 3,567,296 8,746,658 11,041,276 13,608,440 6,084,598 2,519,698 2,912,665 4,715,452 23,963,977 17,915,843
Fixed assets 6,238,673 1,344 8,063 9,407 22,847 41,515 41,386 123,562 122,096 274,959 431,057 369,631 551,786 4,241,020
Intangible assets 454,536 491 2,955 3,447 8,372 15,265 10,554 30,720 29,266 28,520 104,763 98,733 121,450 -
Deferred tax assets - - - - - - - - - - - - - -
Other assets 11,563,302 5,984,788 118,587 74,511 748,938 313,904 590,083 1,699,237 393,009 1,634,018 - - 6,227 -
382,497,788 121,378,656 37,490,677 1,694,474 4,447,505 73,548,295 11,724,911 31,373,580 10,264,964 10,896,099 13,517,385 17,113,113 25,398,628 23,649,501
Liabilities
Bills payable 3,993,525 3,993,525 - - - - - - - - - - - -
Borrowings 81,962,917 287,798 49,490,578 5,626 3,080,815 6,504,899 11,528,034 9,598,547 93,750 226,798 43,364 27,006 93,035 982,667
Deposits and other accounts 262,378,761 160,970,992 7,259,507 6,613,132 19,679,098 19,213,133 26,075,936 12,251,452 3,249,281 6,436,259 373,662 256,309
Liabilities against assets subject to
finance lease - - - - - - - - - - - - - -
Subordinated debt 6,996,400 - 600 - - - - - 600 - 1,200 1,200 2,992,800 4,000,000
Deferred tax liabilities 120,054 - - - - - - - - 120,054 - - - -
Other liabilities 9,057,257 4,328,462 118,587 74,511 748,938 313,904 590,083 1,699,237 393,009 790,526 - - - -
364,508,914 169,580,777 56,869,272 6,693,269 23,508,851 26,031,936 38,194,053 23,549,236 3,736,640 7,573,637 418,226 284,515 3,085,835 4,982,667
Net assets 17,988,874 (48,202,121) (19,378,595) (4,998,795) (19,061,346) 47,516,359 (26,469,142) 7,824,344 6,528,324 3,322,462 13,099,159 16,828,598 22,312,793 18,666,834
Share capital 11,024,636

Reserves 2,109,227
Unappropriated profit 4,312,374
Surplus on revaluation of assets 542,637
17,988,874
-------------------------------------------------------------------------------------------------- 2017 --------------------------------------------------------------------------------------------------

Over 9
Over 1 to 7 Over 7 to 14 Over 14 days Over 1 to 2 Over 2 to 3 Over 3 to 6 Over 6 to 9 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5
Total Upto 1 Day months to 1
days days to 1 Month Months Months Months Months years years Years Years
year
-------------------------------------------------------------------------------------------- Rupees in ‘000 --------------------------------------------------------------------------------------------
Assets
Cash and balances
with treasury banks 19,431,256 19,431,256 - - - - - - - - - - - -
Balances with other banks 1,151,015 1,151,015 - - - - - - - - - - - -
Lending to financial institutions 6,502,687 - 700,000 1,485,507 1,000,000 1,000,000 250,000 2,067,180 - - - - - -
Investments 117,428,516 - 90,155 28,262 9,373,821 20,848,366 45,013,498 3,831,518 544,851 1,710,066 11,137,268 10,631,013 12,960,011 1,259,687
Advances 164,292,915 80,890,448 989,658 2,853,164 4,890,753 7,295,028 13,497,652 13,886,815 3,050,283 913,099 5,294,988 4,755,007 13,302,730 12,673,290
Fixed assets 6,464,678 698 3,886 4,426 10,519 64,273 61,611 88,595 87,739 515,554 512,288 428,216 1,086,817 3,600,056
Intangible assets 116,787 83 500 583 1,333 336 336 1,008 1,343 17,035 88,121 6,081 28 -
Other assets 9,831,441 5,167,075 167,173 300,490 956,317 1,035,302 417,170 162,683 8,032 1,604,622 6,100 - 6,477 -
325,219,295 106,640,575 1,951,372 4,672,432 16,232,743 30,243,305 59,240,267 20,037,799 3,692,248 4,760,376 17,038,765 15,820,317 27,356,063 17,533,033
Liabilities
Bills payable 4,895,447 4,895,447 - - - - - - - - - - - -
Borrowings 64,584,236 305,640 37,014,768 118,400 1,399,336 3,578,060 8,442,323 2,752,596 9,377 10,007,637 11,600 72,269 104,841 767,389
Deposits and other accounts 227,304,100 158,480,147 2,973,215 1,794,386 7,439,859 13,600,789 17,116,830 15,501,105 5,002,744 4,501,726 486,731 406,568 - -
Liabilities against assets subject to
finance lease - - - - - - - - - - - - - -
Subordinated debt 2,997,600 - 600 - - - - - 600 - 1,200 1,200 2,400 2,991,600
Deferred tax liabilities 935,711 - - - - - - - - 935,711 - - - -
Other liabilities 5,997,602 2,334,494 167,173 300,490 956,317 1,035,302 417,170 162,683 8,032 609,841 6,100 - - -
306,714,696 166,015,728 40,155,756 2,213,276 9,795,512 18,214,151 25,976,323 18,416,384 5,020,753 16,054,915 505,631 480,037 107,241 3,758,989
Net assets 18,504,599 (59,375,153) (38,204,384) 2,459,156 6,437,231 12,029,154 33,263,944 1,621,415 (1,328,505) (11,294,539) 16,533,134 15,340,280 27,248,822 13,774,044
Share capital 11,024,636

Reserves 1,752,494
Surplus on revaluation of assets 2,095,099
18,504,599

47.2.10 Maturities of assets and liabilities - based on expected maturities of the assets and liabilities of the Bank
------------------------------------------------------------------------- 2018 -------------------------------------------------------------------------

Over 6
Upto 1 Over 1 to 3 Over 3 to 6 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10
Total Months to 1
Month Months Months Years Years Years Years Years
Year
------------------------------------------------------------------- Rupees in ‘000 -------------------------------------------------------------------
Assets
Cash and balances with treasury banks 26,019,679 14,575,736 6,027,005 2,572,187 2,844,751 - - - - -
Balances with other banks 1,179,612 1,179,612 - - - - - - - -
Lending to financial institutions 3,921,270 3,921,270 - - - - - - - -
Investments 146,645,533 31,940,425 64,472,565 15,911,621 10,074,899 10,068,900 11,929,297 755,188 1,492,638 -
Advances 186,475,183 35,375,754 35,391,884 28,900,932 30,231,146 9,980,195 4,715,452 23,963,977 9,491,121 8,424,722
Fixed assets 6,238,673 41,661 82,901 123,562 397,055 431,057 369,631 551,786 959,005 3,282,015
Intangible assets 454,536 15,265 25,819 30,720 57,786 104,763 98,733 121,450 - -
Other assets 11,563,302 6,926,824 903,987 1,699,237 2,027,027 - - 6,227 - -
382,497,788 93,976,547 106,904,161 49,238,259 45,632,664 20,584,915 17,113,113 25,398,628 11,942,764 11,706,737
Liabilities
Bills payable 3,993,525 3,993,525 - - - - - - - -
Borrowings 81,962,917 52,864,817 18,032,933 9,598,547 320,548 43,364 27,006 93,035 982,667 -
Deposits and other accounts 262,378,761 56,499,016 58,080,238 24,787,307 27,413,916 25,445,372 19,494,509 30,507,384 20,151,019 -
Liabilities against assets subject to finance lease - - - - - - - - - -
Subordinated debt 6,996,400 600 - - 600 1,200 1,200 2,992,800 4,000,000 -
Deferred tax liabilities 120,054 - - - 120,054 - - - - -
Other liabilities 9,057,257 5,270,498 903,987 1,699,237 1,183,535 - - - - -
364,508,914 118,628,456 77,017,158 36,085,091 29,038,653 25,489,936 19,522,715 33,593,219 25,133,686 -
Net assets 17,988,874 (24,651,909) 29,887,003 13,153,168 16,594,011 (4,905,021) (2,409,602) (8,194,591) (13,190,922) 11,706,737
Share capital account 11,024,636

Reserves 2,109,227
Surplus on revaluation of assets 542,637
17,988,874
------------------------------------------------------------------------- 2017 -------------------------------------------------------------------------

Over 6
Upto 1 Over 1 to 3 Over 3 to 6 Over 1 to 2 Over 2 to 3 Over 3 to 5 Over 5 to 10 Above 10
Total Months to 1
Month Months Months Years Years Years Years Years
Year
------------------------------------------------------------------- Rupees in ‘000 -------------------------------------------------------------------
Assets
Cash and balances with treasury banks 19,431,256 9,026,512 4,587,495 2,953,013 2,864,236 - - - - -
Balances with other banks 1,151,015 1,151,015 - - - - - - - -
Lending to financial institutions 6,502,687 3,185,507 1,250,000 2,067,180 - - - - - -
Investments 117,428,516 9,492,238 65,861,864 3,831,518 2,254,917 11,137,268 10,631,013 12,960,011 1,259,687 -
Advances 164,292,915 32,656,577 35,709,695 28,506,083 24,638,150 12,051,383 4,755,007 13,302,730 6,316,714 6,356,576
Fixed assets 6,464,678 19,529 125,884 88,595 603,293 512,288 428,216 1,086,817 1,934,347 1,665,709
Intangible assets 116,787 2,499 672 1,008 18,378 88,121 6,081 28 - -
Deferred tax assets - - - - - - - - - -
Other assets 9,831,441 6,591,055 1,452,472 162,683 1,612,654 6,100 - 6,477 - -
325,219,295 62,124,932 108,988,082 37,610,080 31,991,628 23,795,160 15,820,317 27,356,063 9,510,748 8,022,285
Liabilities
Bills payable 4,895,447 4,895,447 - - - - - - - -
Borrowings 64,584,236 38,838,144 12,020,383 2,752,596 10,017,014 11,600 72,269 104,841 767,389 -
Deposits and other accounts 227,304,100 33,624,760 43,419,741 27,949,690 27,109,428 25,383,902 19,510,839 30,295,004 20,010,736 -
Liabilities against assets subject to finance lease - - - - - - - - - -
Subordinated debt 2,997,600 600 - - 600 1,200 1,200 2,400 2,991,600 -
Deferred tax liabilities 935,711 - - - 935,711 - - - - -
Other liabilities 5,997,602 3,758,474 1,452,472 162,683 617,873 6,100 - - - -
306,714,696 81,117,425 56,892,596 30,864,969 38,680,626 25,402,802 19,584,308 30,402,245 23,769,725 -
Net assets 18,504,599 (18,992,493) 52,095,486 6,745,111 (6,688,998) (1,607,642) (3,763,991) (3,046,182) (14,258,977) 8,022,285
Share capital account 11,024,636

Reserves 1,752,494
Surplus on revaluation of assets 2,095,099
18,504,599

48 GENERAL
48.1 Comparative
Comparative information has been re-classified, re-arranged or additionally incorporated in these financial statements, wherever
necessary to facilitate comparison and better presentation. There were no significant reclassifications during the current year except for
the reclassifications as mentioned in note 4.2 and note 48.1.1.
48.1.1 An amount of Rs. 41.465 (2016: 14.702 million) pertaining to deferred bai mujjal income has been reclassified from “Other liabilities”
to”Lendings to financial institutions”.
48.2 Figures have been rounded off to the nearest thousand rupees unless otherwise stated.
49 EVENTS AFTER THE REPORTING DATE
49.1 The Board of Directors in its meeting held on 22 February 2019 has proposed a cash dividend in respect of the year ended 31 December
2018 of Re. 1 per share (2017: Re. 0.75 per share). This appropriation will be approved in the forthcoming Annual General Meeting. The
financial statements for the year ended 31 December 2018 do not include the effect of this appropriation which will be accounted for in
the financial statements of the Bank for the year ending 31 December 2019.
49.2 Finance Supplementary (Second Amendment) Bill, 2019 laid down before the National Assembly of Pakistan on 23 January 2019,
amended the rate of Super Tax noted in the earlier Finance Act 2018 and prescribed a flat rate of 4% super tax for all accounting years
from 2017 to 2020. The changes proposed by the bill are being deliberated and have not yet been enacted.
If the bill is enacted in its proposed from, the potential impact of the revision in the rate of super tax for the accounting year 2017
would amount to Rs. 116.607 million.
50 DATE OF AUTHORISATION FOR ISSUE
These financial statements were authorised for issue on 22 February 2019 by the Board of Directors of the Bank.

Annexure - I
STATEMENT SHOWING WRITTEN-OFF LOANS OR ANY OTHER FINANCIAL

RELIEF OF FIVE HUNDRED THOUSAND RUPEES AND ABOVE PROVIDED
DURING THE YEAR ENDED DECEMBER 31, 2018
(Rs. in million)
Outstanding liabilites at beginning of the year Other
Mark-up
Name of Individuals/ patners/ Principal Financial
S.No. Name and address of borrower Father/ Husband’s Name Written off/ Total
directors (with CNIC No.) Principal Mark-up Others Total Written off Relif
Waived
Provided
1 2 3 4 5 6 7 8 9 10 11 12=9+10+11
1 DDFC (Pvt) Ltd Mr. Manzar Shahmim Mr. Ibrahim Shamim - 16.420 - 16.420 - 23.524 - 23.524
27-28 KM Multan Road, CNIC No. 35200-1496284-5
Lahore
2 Saeed Buksh (Pvt) Ltd Mr. Usman Ahmed Buksh Mr. Saeed Ahmed Buksh - 1.995 - 1.995 - 2.365 0.085 2.450
9-K Empire Centre, CNIC No. 35201-9369028-9
Lahore
3 Waqar & Awais Associates Mr. Waqar Asif Mr. Asif Mehmood - 1.830 - 1.830 - 1.866 0.035 1.901
75-Y, Phase-III DHA, CNIC No. 35201-1311348-9
Lahore Mr. Muhammad Awais Asif Mr. Asif Mehmood
CNIC No. 35201-8622088-3
4 Al-Rehman Lights Mr. Muhammad Imran Munir Mr. Muhammad Munir - 4.940 - 4.940 - 9.320 0.169 9.489
Opposite Benz Factory, Main Multan Road, CNIC No. 35200-1503328-5
Lahore
5 Rafique Traders Mr. Muhammad Rafiq Mr. Muhammad Hussain - 0.862 - 0.862 - 1.269 - 1.269
35 KM Shouqi Bhattia, CNIC No. 35202-0221706-5
Lahore
6 Syed Amjad Ali & Associates Syed Amjad Ali Syed Akbar Shah - 4.784 - 4.784 - 4.683 0.125 4.808
180-E-II Johar Town, CNIC No. 35202-9857059-9
Lahore
7 Maroof Traders Mr. Muhammad Maroof Mr. Muahmmad Fazal - 0.412 - 0.412 - 0.538 - 0.538
Shop No. 12 Basement Circular Road, CNIC No. 35201-1583797-3
Lahore
8 AR Steel & Re-Rolling Mills Mr. Muhammad Azam Mr. Rasheed Ahmed - 1.167 - 1.167 - 0.976 0.061 1.037
Daghain wala Kharkana Muslimabad Shalimar Town, CNIC No. 35201-5042628-9
Lahore
9 Spintex Enterprises (Pvt) Ltd Mr. Muhammad Sarfraz Mr. Muhammad Latif - 26.303 - 26.303 - 16.545 0.190 16.735
CB-319, Gujjar House, CNIC No. 61101-3303886-1
Garden Town, Multan Mr. Muhammad Iftikhar Mr. Muhammad Latif
CNIC No. 61101-9565469-5
10 Aftab Soap Factory (Pvt) Ltd Mr. Zahid Ahmed Shaikh Ghulam Rasool - 2.296 - 2.296 - 1.779 - 1.779
9 KM Sargodha Road, CNIC No. 33100-7099172-7
Faisalabad Mr. Owais Zahid Shaikh Zahid Ahmed
CNIC No. 33100-2475451-7
Mr. Salman Zahid Shaikh Zahid Ahmed
CNIC No. 33100-9424553-1
11 Tawab International Mr. Muhammad Kashif Mehmood Mr. Mehmood Amjad - 3.189 - 3.189 - 2.559 0.135 2.694
20 KM Jaranwala Road, CNIC No. 33100-8045821-9
Faisalabad
12 Five Star Proteins Mr. Muhammad Asim Mr. Muhammad Asif - 0.843 - 0.843 - 10.668 - 10.668
Chak No 134 RB Maqbool Road, CNIC No. 33100-0812479-5
Faisalabad
13 Bilal Enterprises Mr. Bilal Rafiq Mr. Muhammad Rafiq - 3.253 - 3.253 - 1.678 0.240 1.918
20-Beadon Road, CNIC No. 35202-9345201-7
Lahore
14 Rashid Minhas Secondary School Mr. Allah Nawaz Khan Mr. Attah Ullah Khan - 0.550 - 0.550 - 0.538 0.010 0.548
Rashid Minhas School Faisal Colony, CNIC No. 36302-6194542-9
Multan
15 Olympia Spinning & Weaving Mills Ltd Mr. Waqar Monnoo Mian Mohammad Sadiq Monnoo (Late) 210.905 81.886 - 292.791 37.155 46.158 - 83.313
H-23/3, Landhi Industrial Area, CNIC No. 42201-0645541-7
Karachi Mrs. Ghazala Waqar W/O. Muhammad Waqar Monnoo
CNIC No. 42201-8157988-8
Mr. Siraj Sadiq Monnoo Mian Muhammad Waqar Monnoo
CNIC No. 42201-3201218-9
Syed Ejaz uddin Syed Qayyam uddin (Late)
CNIC No. 42101-1688516-7
Mr. Mohamamd Imran Monnoo Mr. Mohammad Mukhtar Monnoo
CNIC No. 42301-2503659-1
Syed Ayaz uddin Syed Qayyam uddin (Late)
CNIC No. 42101-3561787-7
Mr. Mohamamd Anwar Saigal Mr. Muhamamd Zulzar Saigal
CNIC No. 42000-0463306-7

Annexure - I
(Rs. in million)
Outstanding liabilites at beginning of the year Other
Mark-up
Name of Individuals/ patners/ Principal Financial
S.No. Name and address of borrower Father/ Husband’s Name Written off/ Total
directors (with CNIC No.) Principal Mark-up Others Total Written off Relif
Waived
Provided
1 2 3 4 5 6 7 8 9 10 11 12=9+10+11
16 ABC Fishing Corporation Mr. Shahbaz Anwer Mr. Amir Anwer - 3.930 - 3.930 - 4.358 - 4.358
Ground Floor, 21-Gulzar Chamber, CNIC No. 42301-8151544-7
West Wharf, Karachi Mr. Hashim Anwer Mr. Amir Anwer
CNIC No. 42301-3674984-1
Mr. Mir Nazar Mr. Mir Khudadad
CNIC No. 52101-2262026-9
17 Shahzad Corporation Mr. Muhammad Irfan Mr. Abdul Sattar 4.000 0.732 - 4.732 - 0.502 0.070 0.572
Shop No. 51-A, Grain Market, CNIC No. 36103-5001454-7
Khanewal Mr. Muhammad Faizan Mr. Abdul Sattar
CNIC No. 36103-4295863-1
18 Iqbal Khawaja Bardana Mr. Iqbal Khowaja Mr. Jannat Ali Khowaja 1.995 0.870 - 2.865 - 0.870 - 0.870
House No. 73/3, Street No. 11, CNIC No. 41303-1524643-1
Mubarak Housing Society, Hyderabad
19 Sindhu CNG Mr. Ghulam Abbas Laghari Mr. Ghulam Shabir Laghari 2.306 1.271 - 3.577 - 1.507 - 1.507
K.M 217-218, National Highway, Babhri Hala, CNIC No. 41301-1236910-5
Matiari
20 Creation Mr. Al-Karim Mr. Noor Ali 6.549 0.701 - 7.250 - 0.593 - 0.593
House No. F-1/13 Street Mohllah, Block-7, Clifton, CNIC No. 42301-0911411-7
Karachi
21 Allah Dino Fertilizer Agency Mr. Noroze Ali Mr. Sabz Ali - 0.430 - 0.430 - 0.581 - 0.581
Mohalla Hussainabad Tapal House Tar Khawaja CNIC No. 41402-5522500-1
Talka Jati Distt: Thatta
22 Welknit Textile Mr. Akbar Ali Awan Mr. Rehmat Ali Awan - 0.375 - 0.375 - 3.009 0.087 3.096
Atta Buksh Road, Attari Saroba, 17-KM Feroze Pur
CNIC No. 35201-1095657-7
Road,
Lahore Mrs. Tahira Akbar W/O. Akbar Ali Awan
CNIC No. 35201-3709898-0
Mr. Tahir Qayyum Afzal Mr. Muhammad Afzal
CNIC No. 35201-8114384-9
23 Texcon Mr. Muhammad Razzaq Khan Mr. Sardar Muhammad Ameer Khan 1.110 0.778 - 1.888 - 1.169 - 1.169
Sarshar Town, Thokar Niaz Baig Multan Road, CNIC No. 35202-2688940-1
Lahore
24 Abdul Razzak Khan Mr. Abdul Razzak Khan Mr. Muhammad Ishaq Khan 0.600 - - 0.600 0.450 0.201 0.131 0.782
House No.5, Ali Street, Gulraiz Colony, CNIC No. 36302-7109130-5
Allah Shafi Road, Braran Road, Multan
25 Olympia Power Generation (Pvt) Ltd Mr. Waqar Monnoo Mian Mohammad Sadiq Monnoo (Late) 16.250 5.478 - 21.728 - 5.516 - 5.516
E-3, Farzana Building, 1st Floor, Block-7&8, CNIC No. 42201-0645541-7
Shaheed-e-Millat Road, Karachi Mrs. Ghazala Waqar W/O. Muhammad Waqar Monnoo
CNIC No. 42201-8157988-8
Mr. Siraj Sadiq Monnoo Mian Muhammad Waqar Monnoo
CNIC No. 42201-3201218-9
26 Bilal Zarai Corporation Mr. Bilal Ahmed Mr. Muhammad Bux - 0.964 - 0.964 - 0.516 - 0.516
Basti Haweli Jhangiwala, PO Khas, CNIC No. 35202-3978847-1
Bahawalpur
27 Arif Hussain & Shamas Tabraiz Qamar Mr. Arif Hussain Chaudhry Abdul Ghani 1.999 2.055 - 4.054 - 1.755 - 1.755
Badiana P/O Badiana Tehsil Pasroor, CNIC No. 34602-1600538-3
Distt: Sialkot Mr. Shamas Tabraiz Qamar Chaudhry Abdul Ghani
CNIC No. 34602-1088202-3
28 Tahir Mehmood & Zuliqar Ali Mr. Tahir Mehmood Mr. Khair Din 1.747 1.013 - 2.760 - 0.823 0.055 0.878
Vilage Wahndo Khas, Tehsil Kamokee, CNIC No. 34102-9054684-5
Distt: Gujranwala Mr. Zulfiqar Ali Mr. Khair Din
CNIC No. 34102-4313673-5
29 Ghulam Abbas Mr. Ghulam Abbas Malik Ghulam Qadir 1.674 0.973 - 2.647 - 0.890 - 0.890
Basti Muhammad Khan Wala, PO Qureshi Wala, CNIC No. 31202-9377767-5
Teh.&Distt: Lodhran
TOTAL 249.135 170.300 - 419.435 37.605 146.756 1.393 185.754

Annexure - II
ISLAMIC BANKING BUSINESS
The Bank is operating 21 Islamic Banking branches (31 December 2017: 19). The statement of financial position and profit and loss account
of these branches (including Islamic Banking Division) are as follows:
BSD circular letter No. 03 dated January 22, 2013 requires all Islamic Banks and Banks with Islamic Banking Branches to present all
financing, advances for assets under Islamic modes of financing and any other related items pertaining to Islamic mode of financing under
the caption Islamic Financing and Related Assets in the Statement of Financial Position.
Note 31 December 31 December

2018 2017
--------(Rupees in ‘000)--------
ASSETS
Cash and balances with treasury banks 887,183 1,029,113
Balances with other banks 331,273 26
Due from financial institutions 1 - 4,067,180
Investments 2 5,147,722 4,445,932
Islamic financing and related assets- net 3 8,005,364 4,572,125
Fixed assets 208,419 194,194
Intangible assets - -
Due from head office 4 - 966,419
Other assets 189,802 272,843
Total assets 14,769,763 15,547,832
LIABILITIES
Bills payable 161,871 45,598
Due to financial institutions 328,236 97,863
Deposits and other accounts 5 12,237,182 14,012,013
Due to head office 165,587 -
Other liabilities 97,349 163,450
Total liabilities 12,990,225 14,318,924
NET ASSETS 1,779,538 1,228,908
REPRESENTED BY:
Islamic banking fund 1,500,000 1,000,000
Accumulated profit 7 129,190 160,665
Surplus on revaluation of assets - net of tax 150,348 68,243
1,779,538 1,228,908
CONTINGENCIES AND COMMITMENTS 8
The profit and loss account of the Bank’s Islamic banking branches for the year ended 31 December 2018 is as follows:
31 December 31 December
2018 2017
--------(Rupees in ‘000)--------
Profit / return earned 9 1,014,741 879,681

Profit / return expensed 10 636,273 529,440
Net profit / return 378,468 350,241
Other income
Fee and commission Income 48,607 34,013
Foreign exchange income 21,472 4,600
Loss on securities (49) (1,026)
Other income 1,070 1,269
Total other income 71,100 38,856
449,568 389,097
Other expenses
Operating expenses 320,231 257,388
Other charges 91 750
Total other expenses 320,322 258,138
Profit before provisions 129,246 130,959

(Provisions) / reversals and write offs - net (56) 29,706
Profit before taxation 129,190 160,665

Annexure - II
1 Due from Financial Institutions

2018 2017
Total Total
Currency currencies currency currencies
---------------------------------------------- Rupees in ‘000 ----------------------------------------------
Bai Muajjal receiveable from other financial institutions - - - 201,290 - 201,290

Bai Muajjal receivable from State Bank of Pakistan (SBP) - - - 1,365,890 - 1,365,890
Mudaraba placement - - - 1,500,000 - 1,500,000
Musharaka placement - - - 1,000,000 - 1,000,000
- - - 4,067,180 - 4,067,180
2 Investments by segments:
2018 2017
Cost/ Cost /
Provision for Surplus / Carrying Provision for Surplus / Carrying
amortised amortised
diminution (deficit) value diminution (deficit) value
cost cost
----------------------------------------------------------- Rupees in ‘000 -----------------------------------------------------------
Federal Government securities:
-Ijarah sukuks 400,000 - (7,160) 392,840 2,009,104 - 11,120 2,020,224
-Bai muajjal from Government
of Pakistan (GoP) 2,074,788 - - 2,074,788 - - - -
2,474,788 - (7,160) 2,467,628 2,009,104 - 11,120 2,020,224
Non-Government debt securities

-Listed 406,525 - 4,096 410,621 563,050 - 10,125 573,175
-Unlisted 2,174,194 (19,860) 115,139 2,269,473 1,843,068 (19,860) 29,325 1,852,533
2,580,719 (19,860) 119,235 2,680,094 2,406,118 (19,860) 39,450 2,425,708
Total Investments 5,055,507 (19,860) 112,075 5,147,722 4,415,222 (19,860) 50,570 4,445,932
2018 2017
3 Islamic financing and related assets Note ---- Rupees in ‘000 ----
Ijarah 3.1 423,793 301,549

Murabaha 3.2 880,480 561,726
Musharaka 735,531 521,204
Diminishing Musharaka 3,540,549 1,892,336
Salam 72,015 47,068
Other islamic modes - 467,398
Advances against islamic assets
Murabaha 754,348 416,473
Ijarah 58,193 67,176
Diminishing musharakah 13,471 -
Salam 1,405,323 325,478
Istisna 150,000 -
Gross Islamic financing and related assets 8,033,703 4,600,408
Less: Provision against Islamic financing

- Specific 28,339 28,283
- General - -
28,339 28,283
Islamic financing and related assets - net of provision 8,005,364 4,572,125

3.1 Ijarah
2018
Cost Depreciation
Book Value
As at 01 Additions/ As at 31 As at 01 As at 31 as at 31
Charge for December
January (deletions)/ December January December
the year 2018
2018 adjustment 2018 2018 2018
------------------------------------------ Rupees in 000 ------------------------------------------
Plant & Machinery 54,072 - 24,961 30,753 13,311 17,864 7,097

(29,111) (26,200)
Vehicles 381,633 247,873 596,087 103,403 100,232 179,391 416,696

(33,419) (24,244)
247,873 113,543
Total 435,705 (62,530) 621,048 134,156 (50,444) 197,255 423,793
2017
Cost Accumulated Depreciation
Book Value
As at 01 Additions/ As at 31 As at 01 As at 31 as at 31
Charge for December
January (deletions)/ December January December
the year 2017
2017 adjustment 2017 2017 2017
------------------------------------------ Rupees in 000 ------------------------------------------
Plant & Machinery 171,675 - 54,072 115,566 21,030 30,753 23,319

(105,843) (105,843)
(11,760) -
Vehicles 292,221 155,329 381,633 79,489 61,947 103,403 278,230

(42,211) (38,033)
(23,706) -
463,896 155,329 435,705 195,055 82,977 134,156 301,549
(148,054) (143,876)
Total (35,466)
3.1.1 Future ijarah payments receivable
----------------------- 2018 ----------------------- ----------------------- 2017 -----------------------
Later than Later than

Not later
1 year and Over five Not later 1 year and Over five
than 1 Total Total
less than 5 years than 1 year less than 5 years
year
years years
Ijarah rental receivables 19,019 303,285 - 322,304 110,550 115,322 - 225,872

2018 2017
3.2 Murabaha Note -------- Rupees in ‘000 --------
Murabaha financing 3.2.1 880,480 561,726

Advances for Murabaha 754,348 416,473
1,634,828 978,199
3.2.1 Murabaha receivable - gross 3.2.2 924,334 573,685

Less: Deferred murabaha income 3.2.4 43,854 11,959
Murabaha financings 880,480 561,726
3.2.2 The movement in Murabaha financing during the year is as follows:

Sales during the year 3,383,881 2,347,320
Adjusted during the year (3,033,232) (2,273,896)
3.2.3 Murabaha sale price 3,383,881 2,347,320

Murabaha purchase price (3,294,589) (2,288,305)
89,292 59,015
3.2.4 Deferred murabaha income

Arising during the year 89,292 59,015
Less: Recognised during the year (57,397) (62,362)
4 Due from Head Office - 966,419
5 Deposits and other accounts ------------------- 2018 ---------------------- -------------------- 2017 ---------------------
Total Total
currency currencies currency currencies
-------------------------------------- Rupees in ‘000 --------------------------------------
Customers
Current deposits 1,811,955 348,471 2,160,426 2,238,068 356,971 2,595,039
Savings deposits 3,817,937 - 3,817,937 3,721,889 - 3,721,889
Other 676,152 - 676,152 190,189 - 190,189
Term deposits 641,477 - 641,477 2,914,815 - 2,914,815
6,947,521 348,471 7,295,992 9,064,961 356,971 9,421,932
Financial Institutions
Current deposits 15,205 7,094 22,299 98,132 11 98,143
Savings deposits 4,718,891 - 4,718,891 3,464,938 - 3,464,938
Term deposits 200,000 - 200,000 1,027,000 - 1,027,000
4,934,096 7,094 4,941,190 4,590,070 11 4,590,081
11,881,617 355,565 12,237,182 13,655,031 356,982 14,012,013

2018 2017
-------- Rupees in ‘000 --------
5.1 Composition of deposits
- Individuals 4,555,290 5,327,251
- Government / Public Sector Entities 992,940 2,306,216
- Banking Companies 5,280 200,095
- Non-Banking Financial Institutions 4,935,908 4,389,986
- Private Sector 1,747,764 1,788,465
12,237,182 14,012,013
5.2 This includes deposits eligible to be covered under insurance arrangements amounting to Rs. 5,725 million (2017: Rs. 6,167 million).
2018 2017
-------- Rupees in ‘000 --------
6 Charity Fund
Opening balance - -
Additions during the year

Received from customers on account of delayed payment - 116
- 116
Payments / utilization during the year
Health - (116)
- (116)
Closing balance - -
7 Islamic Banking Business - Unappropriated Profit

Add: Islamic Banking profit for the year 129,190 160,665
Less: Transferred / remitted to Head Office (160,665) (114,918)
8 CONTINGENCIES AND COMMITMENTS
-Guarantees 435,565 191,141

-Other contingent liabilities 1,220,138 651,702
1,655,703 842,843
9 Profit / Return Earned of Financing, Investments and Placement
Profit earned on:

Financing 377,838 344,649
Investments 325,049 287,950
Placements 311,854 247,082
1,014,741 879,681
10 Profit on Deposits and Other Dues Expensed
Deposits and other accounts 625,556 521,044

Due to financial institutions 1,361 2,374
Others 9,356 6,022
636,273 529,440
10.1 These figures have been adjusted to exclude inter segment profitability charge of Rs. 99.065 million @ 7.11% (31 December 2017:
Rs. 60.752 million @ 6.08% per annum) in line with financial reporting requirement.

10.2 Deposits and other accounts include redeemable capital of Rs.9,378.305 million (31 December 2017: Rs.11,398.642 million) and deposits
on Qard basis of Rs. 2,858.877 million (31 December 2017: Rs. 2,883.371 million). Remunerative deposits which are on Mudaraba basis
are considered as Redeemable capital and non-remunerative deposits are classified as being on Qard basis.
11 Pool Management
------------------ 2018 ----------------- ------------------ 2017 -----------------
Normal Special Normal Special
Total Total
Pool Pool Pool Pool
---------------------------------- (Rupees in ‘000) ----------------------------------
Chemical and Pharmaceuticals 924,782 56,526 981,308 189,966 203,651 393,617

Textile 632,739 62,654 695,393 886,818 117,827 1,004,645
Cement - 232,842 232,842 - 232,842 232,842
Sugar 497,336 270,000 767,336 - 300,000 300,000
GOP Bai Muajjal / Ijarah Sukuk - 2,467,628 2,467,628 509,778 1,510,446 2,020,224
Automobile and transportation equipment 23,096 - 23,096 20,126 - 20,126
Financial 424,840 501,184 926,024 4,113,708 524,974 4,638,682
Electronics and electrical appliances 201,024 - 201,024 - - -
Production and transmission of energy 37,331 4,146,182 4,183,513 67,042 2,200,644 2,267,686
Exports Imports 120,148 - 120,148 148,871 - 148,871
Wholesale & Retail Trade 52,296 - 52,296 55,171 - 55,171
Construction 181,905 - 181,905 69,035 - 69,035
Food and allied 600,702 - 600,702 1,038,741 - 1,038,741
Services 281,161 948,084 1,229,245 90,362 333,333 423,695
Iron & Steel 400,000 - 400,000 - - -
Individual - - - 62,377 - 62,377
Others 421,899 - 421,899 130,484 279,068 409,552
4,799,259 8,685,100 13,484,359 7,382,479 5,702,785 13,085,264
Musharaka investments from the SBP under Islamic Export Refinance Scheme (IERS) are channelled towards the export sector of the
economy and other financings as per SBP guidelines.
11.1 Key features and risk and reward characteristics of all pools
The ‘Mudaraba Pool’ for Local Currency caters to all Soneri Bank Limited - Islamic Banking depositors and provides profit / loss based on
Mudaraba.
The IERS Pool caters to the ‘Islamic Export Refinance’ requirements based on the guidelines issued by the SBP.
The risk characteristic of each pool mainly depends on the asset and liability profile of each pool.
Jointly financed by the Bank and unrestricted investments / PLS deposit account holders
This represents all earning assets of the Bank except those tagged to the Islamic Export Refinance Scheme. Major categories include:
Gains /
Funded (loss) on
Expenses Total
Income sale of
securities
------------------- (Rupees in ‘000) -------------------
Islamic financing and related assets 379,617 - - 379,617
Investments 325,049 - - 325,049
Due from financial institutions 308,780 - - 308,780
Others 71,149 (3,281) (49) 67,819
1,084,595 (3,281) (49) 1,081,265
* This includes initial direct cost of Rs. 3,281 million.

11.2 Incentive profits (Hiba)
The Bank paid an aggregate amount of Rs. 104.413 million as incentive profits (Hiba), which includes Rs. 77.091 million for normal pool and
Rs. 27.322 million for special pool during the year ended 31 December 2018. The following guidelines are approved by the Bank’s Sharia
Advisor for determination of incentive profits (Hiba):
- Special weightage deposits in designated tiers / slabs in Mudaraba Pool shall be offered extra weightages outside the Mudaraba Pool,
provided the specified parameters are met ;
- The deposit deal shall be at least of Rs 100 thousands ;
- In case a Term Deposit is pre-maturely encased, profit shall be paid at the expected rate of completed tenor;
- The payment of Hiba on deposits will be at the sole discretion of the Bank and could be decreased or / and removed any time during
the tenure of the deposit, under intimation to the customer, if the customer fails to meet the prerequisites at any time during the tenure
of the deposit and / or the profit rate no longer remains sustainable from Bank’s share; and
- The Bank shall ensure that all the operational procedures and controls to the satisfaction of Shariah are in place.
11.3 Contractual maturities of mudaraba based deposit accounts
2018
Over 6
Particulars Upto 1 Over 1 to 3 Over 3 to 6 Over 1 to 2 Over 2 to 3 Over 3 to 5
Total Months to
Month Months Months Years Years Years
1 Year
----------------------------------------------- (Rupees in ‘000) --------------------------------------------
Fixed Deposits 841,477 - 70,770 - 574,909 92,600 98,498 4,700
Savings Deposits 7,747,970 7,747,970 - - - - - -
Current Account
- Remunerative 788,858 788,858 - - - - - -
9,378,305 8,536,828 70,770 - 574,909 92,600 98,498 4,700
Profit / (loss) distribution to depositor’s pool
Mudarib
Mudarib
Share Profit
Profit Share
transferred Mudarib Mudarib rate and
Sharing Profit transferred Profit rate
General Remunerative to the share Net of share Net weightage
Ratio rate return to the return
Depositor’s Pools Depositors Hiba (Rs in of Hiba announc-
(Depositor: earned Depositors distributed
through ‘000) Percent ement
Mudarib) through Hiba
Hiba period
(Rs in ‘000)
(Percentage)
Mudaraba Pool
Normal Pool 75.00% 6.94% 77,091 7.29% 187,335 17.71% Monthly 3.31%
Special Pool 75.00% 8.18% 27,322 6.20% 82,831 18.80% Monthly 6.74%
Total 75.00% 7.50% 104,413 6.97% 270,166 18.03% Monthly 4.64%
Profit
Share of
Ratio of rate and Profit rate
profit to HIBA
weightage weightage return
IERS Musharaka Pool SBP (Rupees in
of Bank to announc- earned by
(Rupees in ‘000)
SBP ement SBP
‘000)
period
Musharaka Pool SBP’s Islamic Export Refinance Scheme

0.1700 313.494 2.281 Quarterly 1.03%
0.2400 259.374 29.643 Quarterly 1.01%
0.3300 541.821 5.912 Quarterly 1.19%
0.2700 612.696 4.817 Quarterly 0.96%

Parameters used for allocation of profit, charging expenses and provisions, etc. along with a brief description of their major components:
Income generated from relevant assets, calculated at the end of each month is first set aside for the Musharaka pool arrangement between
the Bank and the State Bank of Pakistan. It is then allocated between the participants of the pool as per the agreed weightages and rates.
The Mudaraba Pool profit is divided between the Bank and depositors in the ratio of Bank’s average equity (pertaining to Islamic banking
branches) and average depositors balances commingled in each pool on a pro-rata basis. The depositors’ share of profit is allocated
amongst them on the basis of weightages declared before start of each month, after deduction of a mudarib fee. During the year ended
31 December 2018, the Bank charged 25% (2017: 25%) of the profit as Mudarib fee. These weightages are declared by the Bank in
compliance with the requirements of the SBP and Shariah.
The allocation (of income and expenses to different pools) is made on a pre-defined basis and accounting principles / standards. Provisions
against any non-performing assets of the pool are not passed on to the pool.
11.4 Allocation of Income and Expenses to Depositors’ Pools
a) Following are material items of revenues, expenses, gains and losses

2018 2017
--------- (Rupees in ‘000) --------
Profit / return earned on financings, investments and placements 1,013,446 873,503

Other income (including other charges) 71,100 38,856
Directly related costs attributable to pool (3,281) (5,534)
1,081,265 906,825
b) Following weightages have been assigned to different products under the Mudaraba Pool during the year:
Percentage of
Minimum Maximum
total Mudaraba
weightage weightage
based deposits
Savings - Soneri Munafa Account 81% 0.3333 1.1850

Savings - Soneri Bachat Account 1% 0.3333 0.3333
Savings - Assan Account 0% 0.3333 0.3333
Current Account - Remunerative 9% 0.0083 0.0083
Time Deposits - Soneri Meadi 9% 0.4583 1.1239
The Bank shares all its revenue generated through banking operations with the deposit account (pertaining to Islamic Operation) holders.

Annexure - III
DISPOSAL OF FIXED ASSETS (REFER NOTE 11.2.4)
Disposals / deletions of property and equipment with original cost or book value in excess of rupees one million or two hundred fifty thousand
respectively (whichever is less):
Sale price/ Mode of

Particulars of buyers /
Particulars Cost Book value insurance settlement /
insurance companies
proceeds disposal
------------- Rupees in ‘000 -------------
Leasehold Improvement
------------- do ------------- 4,676 2,191 - Write off
------------- do ------------- 3,808 1,949 - Write off
------------- do ------------- 2,553 1,382 - Write off
------------- do ------------- 1,760 935 - Write off
------------- do ------------- 1,084 521 - Write off
------------- do ------------- 844 457 - Write off
------------- do ------------- 666 441 414 Insurance Claim Jubilee General Insurance
------------- do ------------- 605 349 - Write off
------------- do ------------- 391 336 - Write off
Items with WDV of below Rs. 250,000/-
and cost of less than Rs. 1,000,000 588 403 117 various various
16,974 8,963 531
Furniture and fixtures

and cost of less than Rs. 1,000,000 1,788 205 242 various various
1,788 205 242
Electrical office and computer equipment
------------- do ------------- 4,279 - 420 Tender Rajab Ali and Co
------------- do ------------- 1,449 - - Write off
------------- do ------------- 1,432 - 9 Trade off Touch Point (Pvt) Ltd
------------- do ------------- 1,398 - 40 Trade off Power Technology Int

Annexure - III
Sale price/ Mode of

Particulars of buyers /
Particulars Cost Book value insurance settlement /
insurance companies
proceeds disposal

------------- do ------------- 1,032 - 40 Trade off Power Technology Int
each and cost of less than Rs. 1,000,000 73,426 3,053 11,486 various various
122,426 3,053 13,951
Motor vehicles 1,588 - 1,307 Tender Mr. Riaz Ahmed

------------- do ------------- 1,538 - 1,175 Tender Mr. Muhammad Jahangir Khan
------------- do ------------- 1,538 - 1,179 Tender Mr. Sheraz Khan
------------- do ------------- 1,446 - 1,074 Tender Mr. Nouman Ahmed Siddqui
------------- do ------------- 1,424 - 1,167 Tender Mr. Wasim Mirza
------------- do ------------- 1,378 - 1,145 Tender Mr. Muhammad Zubair Rana
each and cost of less than Rs. 1,000,000 13,390 - 8,490 various various
22,301 - 15,537
163,489 12,221 30,260

REPORT OF SHARIAH BOARD
TO THE BOARD OF DIRECTORS
In the name of Allah, the Beneficent, the Merciful
By the grace of Almighty Allah, the year under review was the 13th year of Islamic commercial banking for Soneri Bank Limited, while the Board of
Directors and Executive Management are solely responsible to ensure that the operations of Soneri Bank Limited – Islamic Banking (Mustaqeem)
are conducted in a manner that comply with Shariah principles at all times, we are required to submit a report on the overall Shariah compliance
environment of Soneri Bank Limited – Islamic Banking (Mustaqeem).
To form an opinion on the overall Shariah Compliance environment as required by the regulatory framework, the Shariah Compliance Department
(SCD) of the bank needs to carry out reviews, on test check basis, of each class of transactions, the relevant documentation and process flows.
Further, the reports of the Internal Shariah Audit and External Shariah Audit also form the basis of this report.
During the year under review, the Shariah Board supervised and analyzed various transactions, processes and their Shariah Compliance as an
ongoing practice to ensure that the transactions continue to be valid as per Shariah. The main modes of financing used for the bank’s Islamic
financing activities consist of Murabaha, Ijarah, Diminishing Musharakah, Istisna, Salam and Running Musharakah. It is encouraging to report that
the Bank has been gradually moving from trade based to Participatory modes which is beneficial for the development of Islamic Banking in long run.
To strengthen and broaden the functions of Shariah control, the SCD of the Bank goes the extra mile to facilitate the customers accompanying the
Business teams on their visits to understand and assess the customers’ business needs and giving their due feedback on the process flows.
Additionally, to maintain the high level of compliance, the SCD performed random physical inspections of Islamic financing transactions. Additionally,
SCD is also involved in the review process of profit distribution to the depositors on monthly basis with their utmost best efforts and it was generally
found in conformity with Shariah Rules and Principles and Pool Management guidelines of State Bank of Pakistan (SBP) with some issues due to
Temenos (T-24) core banking implementation.
Based on the above, we are of the view that:

i. Soneri Bank Limited – Islamic Banking (Mustaqeem) has a mechanism in place to ensure Shariah compliance in their overall operations. We
hope to improve this mechanism with adequately staffed SCD. Moreover, the Board of Directors has considered expanding Islamic Banking
Business in the coming years with very aggressive targets, where adequately staffed SCD is essential in the coming year.
ii. The Bank has complied by and large with Shariah rules and principles in the light of fatawa, rulings and guidelines issued by its Shariah Board.
iii. The Bank has complied with the directives, regulations, instructions and guidelines related to Shariah compliance issued by SBP in accordance
with the rulings of SBP’s Shariah Board. However, due to non-availability of comprehensive Pool Management Automated System, Shariah
Board directed Internal Shariah Audit to conduct a special audit of Profit and loss distribution. The Internal Shariah Audit Report reveals system
related issues and the fact that management has addressed them to the maximum possible extent through alternate procedures applied in
the absence of the system. This is also a SBP regulatory requirement as per profit and loss distribution Policy therefore; we recommend the
management of Soneri Bank to prioritize the implementation of the Pool Management System to have multiple pools with proper asset tagging
for effectiveness.
iv. The Bank has a well-defined system in place in form of Shariah Compliance Review and Internal Shariah Audit to ensure that the earning
realized from the sources or means prohibited by Shariah shall be identified.
v. It is encouraging to note that the Bank’s Learning and Development Department on our advice carried out Islamic Banking training for almost
all the employees posted in Islamic Banking group. Furthermore, most of the Islamic Banking employees working in Business side were given
NIBAF one month comprehensive training for their better understanding and efficiency. However, we advise that the Bank should now focus
on specialized Islamic Banking certification courses including Shariah documentation enabling the Islamic banking employees to have more
dedicated approach.
vi. It is promising to report that the Board of Directors were very responsive in the orientation trainings and are very focused toward expansion of
Soneri Islamic Banking. These regular trainings of the Board of Directors will enhance their knowledge and give a better insight. We encourage
the Training Division to arrange such trainings for Management Committee also as per regulatory requirement.
vii. We further recommend that Islamic Banking Staff should be provided with Shariah Compliant Staff Financing Facilities. We hope that the said
issue shall be resolved in the coming year.
We pray to Almighty Allah, for the success of Islamic Banking and to provide us the guidance to adhere to His Shariah in day to day operations and
forgive our mistakes.
And Allah knows best
____________________________
Mufti Ehsan Waquar Ahmad
Chairman Shariah Board
____________________________ ____________________________
Mufti Muhammad Zahid Mufti Bilal Ahmed Qazi
Resident Shariah Board Member Shariah Board Member
Karachi: 22 February 2019

NOTICE OF THE
ANNUAL GENERAL MEETING
Notice is hereby given that Twenty Seventh (27th) Annual General Meeting (“AGM”) of Soneri Bank Limited will be held at Avari Hotel, Lahore on
28 March 2019 at 9:00 a.m. to transact the following business:
Ordinary Business
1) To confirm the minutes of last Extra Ordinary General Meeting held on 26 October 2018.
2) To receive, consider and adopt Annual Audited Accounts together with the Directors’and Auditors’ Reports thereon for the year ended
31 December 2018.
3) To approve and declare the final cash dividend of Re.1.00/- per share (i.e.10%) for the financial year ended 31 December 2018 as recommended
by the Board of Directors in its 167th meeting held on 22 February 2019.
4) To appoint Auditors of the Bank for the year ending 31 December 2019 till the conclusion of next Annual General Meeting and fix their
remuneration. The retiring auditors M/s. A.F. Ferguson & Company, Chartered Accountants, have completed the period of five years; hence,
are not eligible for re-appointment as provided in the Listed Companies (Code of Corporate Governance) Regulations, 2017. The Audit
Committee has suggested the appointment of M/s. KPMG Taseer Hadi & Company, Chartered Accountants, as auditors of the Bank. The
Board of Directors, on the suggestion of Audit Committee, has recommended to the shareholders the appointment of M/s KPMG Taseer
Hadi & Company, Chartered Accountants, being eligible, have consented to act as statutory auditors of the Bank for the year ending
31 December 2019.
5) To transact such other ordinary business as may be placed before the meeting with the permission of the Chair.
BY ORDER OF THE BOARD
Muhammad Altaf Butt

Company Secretary
NOTES:
1. Share Transfer Books of Soneri Bank Limited (the “Bank”) will remain closed from 21 March 2019 to 28 March 2019 (both days inclusive).
2. A member entitled to attend and vote at this meeting may appoint another member as his or her proxy to attend and vote. Proxies, in order to
be effective, must be received at the registered office of the Bank not less than 48 hours before the time of holding the meeting. Proxy form shall
be witnessed by two persons whose names, addresses and Computerized National Identity Card (CNIC) numbers shall be mentioned on the
form. Proxy form, both in English and Urdu language is being separately sent to the shareholders, along with Notice of AGM.
3. The CDC account/sub account holders shall have to produce their original Computerized National Identity Card (CNIC) or original passport at
the time of attending the meeting for identification purpose, alongwith participant’s I.D Number and their Account No. in CDS.
In case of corporate entity, the Board of Directors’ resolution/power of attorney with specimen signature of the nominee together with the original
proxy form duly filled in must be received at the registered office of the Bank not less than 48 hours before the time of holding the meeting. The
nominees shall produce their original CNIC or original passport at the time of attending the meeting for identification purpose.
4. Shareholders are requested to notify change in their addresses, if any, to our Share Registrar, M/s. THK Associates (Pvt.) Ltd, 1st Floor, 40-C,
Block-6, P.E.C.H.S. Karachi.
5. Mandatory submission of CNIC
Those shareholders who have not yet submitted a valid copy of their CNIC, are once again requested to submit the same immediately to our
Share Registrar so as to comply with the mandatory requirement of the Securities and Exchange Commission of Pakistan (“SECP”) Notification
No.S.R.O.831(I)/2012 dated 05 July 2012 which requires that the dividend warrant should bear CNIC number of the member.

6. Transmission of Audited Financial Statements & Notice Of Annual General Meeting Through E-Mail
SECP through its Notification No.S.R.O.787(1)2014 dated 08 September 2014, has allowed companies to circulate their annual balance sheet
and profit & loss account, auditor’s report and directors’ report etc. (“Audited Financial Statements”) along with Notice of Annual General
Meeting (“Notice”) to their shareholders through email. The shareholders who wish to receive Annual Audited Financial Statements and Notice
of AGM through email are requested to fill the consent form given in below link and return it to our Share Registrar. http://www.soneribank.com/
investor-relations/stock-information/
7. Increase in withholding tax on dividend income for Non-Filers and payment of cash dividend through electronic mode
The Shareholders are hereby informed that pursuant to amendments in Section 150 of the Income Tax Ordinance, 2001 through Finance Act,
2017, Income Tax will be deducted at source @15% for filers and @20.00% for non-filers of income tax return (determined as per “Active Tax
Payer List (ATL)” available on Federal Board of Revenue’s website) from the dividend amount, if any.
In case of joint account, each holder is to be treated individually as either a filer or non-filer and tax will be deducted on the basis of shareholding
of each joint holder as may be notified by the shareholder, in writing as follows, to our Share Registrar. In case no such notification is received
by us, equal deduction of tax will be made where proportionate holding is not available with us.
Principal Shareholder Joint Shareholder

Folio/CDS A/c. Shareholding Shareholding
Company Name Total Shares Name & Name &
No. proportion proportion
CNIC No. CNIC No.
(No. of Shares) (No. of Shares)
The CNIC number/NTN details is now mandatory and is required for checking the tax status as per the Active Taxpayers List (ATL) issued by
Federal Board of Revenue (FBR) from time to time.
8. E-Dividend Mandate (Mandatory)
In terms of Section 242 of the Companies Act, 2017 (“Act”) and Companies (Distribution of Dividends) Regulations, 2017, every listed company
is required to pay dividend, if any, to their shareholders compulsorily through electronic mode directly crediting the same in their bank account.

In this respect, the Bank has already communicated through its letter dated 25 October 2017 addressed to the shareholders individually
along with newspapers publications requesting to provide the International Bank Account Number (“IBAN”), however response from very few
shareholders was received.

Shareholders are again requested to update their record. In this connection, CDC shareholders may submit their IBAN details to their investor
account services or their brokers where shares are placed electronically. In case of physical holding, the shareholders are requested to submit
their bank mandate details to the Bank’s Share Registrar. For providing the Bank Mandate details to CDC/Share Registrar, the requisite form
may be downloaded from the Bank’s website, direct link of which is;

http://www.soneribank.com/wp-content/uploads/2017/10/Dividend_Mandate_form.pdf
9. Unclaimed Dividend and Shares
Pursuant to Section 244 of the Act, any shares issued or dividend declared by the Bank, which remain unclaimed or unpaid for a period of three
years from the date it became due and payable shall rest with the Federal Government after compliance of procedures prescribed under the
Act. In this respect, we had already initiated the process and concerned shareholders were advised vide our letter dated 04.10.2017 to claim
their unclaimed dividend/Shares. However, only few shareholders have claimed their pending entitlements so far. Statement of such unclaimed
dividend/shares is available on the Bank’s website which may be accessed by surfing the link: http://www.soneribank.com/about-us/investor-
relations/shareholders-information/
Shareholders are again advised to approach the Bank’s Share Registrar to claim their pending dividend/shares at the earliest failing which the
Bank shall proceed ahead in terms of requirement of Section 244(2) (a) & (b) of the Act.

10. Deposit of Physical shares into CDC Account
The Shareholders having shares in physical form are advised to open CDC sub-account with any of the brokers or Investor Account directly with
the CDC to place their shares in scrip-less form, this will facilitate them in many ways including safe custody and sale of shares at any time they
want, as the trading of physical shares is not permitted as per existing regulations of Pakistan Stock Exchange Limited.
Further, Section 72 of the Act states that after the commencement of this Act from a date notified by the Commission, a company having share
capital, shall have shares in book-entry form only. Every existing company shall be required to replace its physical shares with book-entry form in
a manner as may be specified and from the date notified by the Commission, within a period not exceeding four years from the commencement
of this Act.
11. Video Conference Facility for attending Annual General Meeting
The members who wish to attend Annual General Meeting via video conference, may send their consent on the below format to the Bank at its
registered office address.
If the Bank receives consent from members holding in aggregate 10% or more shareholding residing at a geographical location, to participate in
the meeting through video conference at least seven (7) days prior to date of the meeting, the Bank will arrange video conference facility in that
city subject to availability of such facility in that city.
The Bank will intimate members regarding venue of video-link facility at least five (5) days before the date of the AGM along with complete
information necessary to enable them to access such facility.

Consent Form for Video Conference Facility
“I/We ----------------------------------------of----------------------, being a member of Soneri Bank Limited, holder of

-------------------Ordinary shares as per registered Folio/CDC Account No.-------------------hereby opt for video conference facility at
---------------------------------------(geographical location).
__________________
Signature of Member
12. Placement of AGM Notice on the Bank’s website
Notice of 27th Annual General Meeting has also been made available on the Bank’s website www.soneribank.com in addition to its dispatch to
the Shareholders through DVDs as well as publication in the newspapers.
Inspection of Documents:
The copies of the latest annual audited financial statements, Memorandum & Articles of Association and other documents/information have been kept
at the registered office of the Bank which may be inspected on any working day during business hours till the date of 27th Annual General Meeting.

FINANCIAL CALENDAR
2018
• 1st Quarter Results issued on 20 April 2018
• 2nd Quarter Results issued on 28 August 2018
• 3rd Quarter Results issued on 26 October 2018
• Annual Results issued on 22 February 2019
• 27th Annual General Meeting scheduled for 28 March 2019
2017
• 1st Quarter Results issued on 17 April 2017
• 2nd Quarter Results issued on 21 August 2017
• 3rd Quarter Results issued on 18 October 2017
• Annual Results issued on 20 February 2018
• 26th Annual General Meeting scheduled for 30 March 2018

FORM 34 - PATTERN OF HOLDING OF THE
SHARES HELD BY THE SHAREHOLDERS AS ON
31 DECEMBER 2018
No. of Total
From To Percentage
Shareholders Shares Held
971 1 100 33,822 0.0031

1,281 101 500 353,519 0.0321
1,045 501 1,000 823,706 0.0747
2,039 1,001 5,000 4,623,507 0.4194
1,393 5,001 10,000 11,366,240 1.0310
578 10,001 15,000 6,789,427 0.6158
144 15,001 20,000 2,494,440 0.2263
65 20,001 25,000 1,468,020 0.1332
42 25,001 30,000 1,157,295 0.1050
29 30,001 35,000 951,553 0.0863
15 35,001 40,000 566,594 0.0514
12 40,001 45,000 513,556 0.0466
15 45,001 50,000 723,798 0.0657
19 50,001 55,000 997,815 0.0905
10 55,001 60,000 567,748 0.0515
9 60,001 65,000 559,957 0.0508
8 65,001 70,000 535,465 0.0486
4 70,001 75,000 290,550 0.0264
8 75,001 80,000 619,416 0.0562
4 80,001 85,000 328,280 0.0298
3 85,001 90,000 259,397 0.0235
2 90,001 95,000 183,516 0.0166
6 95,001 100,000 590,834 0.0536
2 100,001 105,000 205,448 0.0186
3 105,001 110,000 324,869 0.0295
4 110,001 115,000 448,563 0.0407
2 115,001 120,000 231,233 0.0210
2 120,001 125,000 244,026 0.0221
2 130,001 135,000 266,404 0.0242
1 135,001 140,000 137,875 0.0125
3 140,001 145,000 425,230 0.0386
1 145,001 150,000 147,502 0.0134
1 150,001 155,000 154,000 0.0140
2 155,001 160,000 317,550 0.0288
4 160,001 165,000 657,056 0.0596
1 170,001 175,000 170,940 0.0155
1 185,001 190,000 189,835 0.0172
2 195,001 200,000 400,000 0.0363
1 200,001 205,000 203,002 0.0184
1 210,001 215,000 214,864 0.0195
1 230,001 235,000 232,268 0.0211
1 235,001 240,000 235,962 0.0214
2 240,001 245,000 487,769 0.0442
1 275,001 280,000 280,000 0.0254
1 280,001 285,000 284,493 0.0258
1 285,001 290,000 287,342 0.0261
2 290,001 295,000 584,735 0.0530
2 295,001 300,000 594,838 0.0540

No. of Total
From To Percentage
Shareholders Shares Held
2 290,001 295,000 584,735 0.0530

2 295,001 300,000 594,838 0.0540
1 320,001 325,000 322,500 0.0293
1 345,001 350,000 348,500 0.0316
1 350,001 355,000 353,709 0.0321
1 365,001 370,000 366,300 0.0332
1 375,001 380,000 375,134 0.0340
1 490,001 495,000 493,500 0.0448
1 565,001 57,000 569,500 0.0517
1 570,001 575,000 571,046 0.0518
2 600,001 605,000 1,208,661 0.1096
1 635,001 640,000 636,427 0.0577
1 655,001 660,000 657,000 0.0596
1 985,001 990,000 987,500 0.0896
1 995,001 1,000,000 1,000,000 0.0907
1 1,125,001 1,130,000 1,129,647 0.1025
1 1,200,001 1,205,000 1,202,150 0.1090
1 1,210,001 1,215,000 1,214,807 0.1102
1 2,095,001 2,100,000 2,100,000 0.1905
1 2,765,001 2,770,000 2,766,216 0.2509
1 3,440,001 3,445,000 3,441,416 0.3122
1 3,590,001 3,595,000 3,591,580 0.3258
1 4,645,001 4,650,000 4,649,000 0.4217
1 4,650,001 4,655,000 4,650,500 0.4218
1 5,060,001 5,065,000 5,060,452 0.4590
1 5,490,001 5,495,000 5,494,500 0.4984
1 7,995,001 8,000,000 8,000,000 0.7256
1 8,430,001 8,435,000 8,430,965 0.7647
1 9,475,001 9,480,000 9,477,018 0.8596
1 13,545,001 13,550,000 13,546,734 1.2288
1 21,015,001 21,020,000 21,020,000 1.9066
1 22,290,001 22,295,000 22,291,500 2.0220
1 24,630,001 24,635,000 24,631,642 2.2342
1 26,785,001 26,790,000 26,786,763 2.4297
1 37,280,001 37,285,000 37,280,242 3.3815
1 37,505,001 37,510,000 37,508,988 3.4023
1 44,860,001 44,865,000 44,861,500 4.0692
1 45,780,001 45,785,000 45,781,000 4.1526
1 47,105,001 47,110,000 47,109,707 4.2731
1 48,880,001 48,885,000 48,882,000 4.4339
1 51,385,001 51,390,000 51,386,588 4.6611
1 76,615,001 76,620,000 76,619,421 6.9498
1 86,005,001 86,010,000 86,008,806 7.8015
1 103,745,001 103,750,000 103,748,549 9.4106
1 301,375,001 301,380,000 301,377,754 27.3368

Total 7,790 1,102,463,481 100.00

No. of
Categories of Shareholders Shares Held Percentage
Shareholders
Directors, Chief Executive Officer and

their spouses and minor children
DIRECTORS
Mr. Alauddin Feerasta 2 10,080,679 0.9144
Mr. Nooruddin Feerasta 1 14,048 0.0013
Mr. Amin A. Feerasta 1 5,401 0.0005
Mr. Muhammad Rashid Zahir 1 10,065 0.0009
Mr. Jamil Hassan Hamdani 1 1,000 0.0001
Mr. Inam Elahi 1 626 0.0001
CHIEF EXECUTIVE OFFICER
Mr. Mohammad Aftab Manzoor - -
DIRECTORS’ SPOUSES AND MINOR CHILDREN
Mrs. Aziza A. Feerasta 1 5,401 0.0005
w/o Mr. Alauddin Feerasta

Mrs. Amyna N. Feerasta 1 7,021 0.0006
w/o Mr. Nooruddin Feerasta

Mrs. Salima A. Feerasta 1 5,401 0.0005
w/o Amin A. Feerasta
10 10,129,642 0.9188
Associated Companies, undertakings

and related parties
Trustees Alauddin Feerasta Trust 2 387,386,560 35.1383
Trustees Feerasta Senior Trust 2 128,006,009 11.6109
Trustees Alnu Trust 2 64,067,005 5.8113
Executives - -
National Investment Trust Limited 2 104,405,549 9.4702
Banks, Development Financial Instituions,
Non Banking Financial Instituions. 11 22,434,021 2.0349
Insurance Companies 3 13,562,912 1.2302
Modarabas 2 1,792 0.0002
Mutual Funds
Safeway Mutual Fund Ltd. 1 6,820 0.0006
First Tri-Star Modaraba 1 86 0.0000
Tri Star Mutual Fund Ltd. 1 276 0.0000
Crescent Standard Business Mgt. (Pvt.) Ltd. 1 1 0.0000
Joint Stock Companies 44 169,374,560 15.3633
Foreign Companies 8 47,209,943 4.2822
Others 9 8,871,558 0.8047
General Public:
a) Local 6,518 133,757,968 12.1326
b) Foreign 1,173 13,248,779 1.2017
Total: 7,790 1,102,463,481 100.0000

Shareholders Holding Five Percent or More Voting Interest in the Bank

Trustees Alauddin Feerasta Trust 387,386,560 35.1383
Trustees Feerasta Senior Trust 128,006,009 11.6109
National Investment Trust Limited 104,405,549 9.4702
Trustees Alnu Trust 64,067,005 5.8113
Mr. Amir Feerasta 62,140,630 5.6365
* Voting rights on shares are restricted upto five percent only.
-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-:-
Trading in shares during the year 2018:
Directors, CEO, CFO, HOA, Company Secretary and Executives - NIL

LIST OF
BRANCHES
AS AT 31 DECEMBER 2018
REGISTERED OFFICE CENTRAL OFFICE

Rupali House, 241-242 10th Floor, PNSC Building, M. T. Khan Road
Upper Mall Scheme, Anand Road Karachi
Lahore-54000 - Pakistan Tel. No: (+92-21) 32444401-5 & 111-567-890
Tel. No: (+92-42) 35713101-2 & 35792180 Swift: SONEPKKAXXX
CENTRAL REGION 16 Johar Town Branch, Lahore 33 Azam Cloth Market Branch, Lahore
Tel. No: (042) 35204191-3 Tel. No: (042) 37662203-7
01 Main Branch, Lahore
Tel: (042) 36368141-8 & 111-567-890 17 Wahdat Road Branch, Lahore 34 Jail Road Branch, Lahore
Tel. No: (042) 37424821-7 & 37420591 Tel. No: (042) 35408936-8
02 Defence Branch, Lahore
Tel. No: (042) 35730760-1, 3574616 & 18 Gunpat Road Branch, Lahore 35 Badami Bagh Branch, Lahore
(042) 35691037-9 Tel. No: (042) 37361607-9 Tel. No: (042) 37731601, 2 & 4
03 Gulberg Branch, Lahore 19 Airport Road Branch, Lahore 36 Montgomery Road Branch, Lahore
Tel. No: (042) 35713445-8, 35759273 & Tel. No: (042) 35700115-8 Tel. No: (042) 36291013-4
(042) 35772294-5
20 Timber Market Branch, Lahore Islamic Banking
04 Circular Road Branch, Lahore Tel. No: (042) 37725353-8 37 DHA Phase: VI Branch, Lahore
Tel. No: (042) 37670483, 86, 89 & Tel. No: (042) 37180535-7
(042) 37379319 21 Shahdara Branch, Lahore
Tel. No: (042) 37920085, 37941741-3 & 38 Bahria Town Branch, Lahore
05 Model Town Branch, Lahore (042) 37921743-8 Tel. No: 0316-8226346-9
Tel. No: (042) 35889311-2 & 35915666
22 Manga Mandi Branch, Lahore 39 Expo Centre Branch, Lahore
06 Peco Road Branch, Lahore Tel. No: (042) 35383516-9 Tel. No: (042) 35314087, 88, 90 & 91
Tel. No: (042) 35222306-7, 35203050-1,
(042) 35177804 & 35173392 23 Badian Road Branch, Lahore 40 Wapda Town Branch, Lahore
Tel. No: (042) 37165390-2 Tel. No: (042) 35187611-2
07 Cavalry Ground Branch, Lahore
Tel. No: (042) 36653728-30 & 36619702 24 Mughalpura Branch, Lahore 41 Shah Alam Market Branch, Lahore
Tel. No: (042) 36880892-4 Tel. No: (042) 37376213-4
Islamic Banking
08 Temple Road Branch, Lahore 25 Upper Mall Branch, Lahore 42 DHA Phase-V Branch, Lahore
Tel. No: (042) 36376341, 2 & 6 Tel. No: (042) 35789346, 49, 51 & 55 Tel. No: (042) 35695678 & 0316-8226322-3
09 Allama Iqbal Town Branch, Lahore 26 Islampura Branch, Lahore 43 Chauburji Branch, Lahore
Tel. No: (042) 37812395-7 Tel. No: (042) 37214394-7 Tel. No: (042) 37112228 & 0316-8226325-7
10 Baghbanpura Branch, Lahore 27 Garhi Shahu Branch, Lahore 44 Walton Road Branch, Lahore
Tel. No: (042) 36832811-3 Tel. No: (042) 36294201-3 & 36376096 Tel. No: (042) 36672305 & 0316-8226339,
40 & 41
11 Thokar Niaz Baig Branch, Lahore 28 Zarrar Shaheed Road Br., Lahore
Tel. No: (042) 35313651, 3 & 4 Tel. No: (042) 36635167-8 45 Faisal Town Branch, Lahore
Tel. No: (042) 35170540 & 0316-8226335,
12 Ghazi Chowk Branch, Lahore 29 Hamdard Chowk Kot Lakhpat Br., Lahore 7&8
Tel. No: (042) 35188505-7 & 35185661-3 Tel. No: (042) 35140261-3
46 Karim Block Branch, Lahore
Islamic Banking 30 Kana Kacha Branch, Lahore Tel. No: (042) 35417757 & 0316-8226412,
13 New Garden Town Branch, Lahore Tel. No: (042) 35472222 & 0316-8226316-8 3&4
Tel. No: (042) 35940611-616
31 Sabzazar Branch, Lahore 47 Defence Road Branch, Lahore
14 DHA Phase-III Branch, Lahore Tel. No: (042) 37830881-6 Tel. No: 0316-8226415-8
Tel. No: (042) 35734083-5
32 DHA Phase-IV Br., Lahore 48 Safari Garden Branch, Lahore
15 Chungi Amer Sadhu Branch, Lahore Tel. No: (042) 35694156-7 Tel. No: 0317-4484537-9
Tel. No: (042) 35922182,184 & 186

49 Raiwind Branch, Lahore 67 Small Industrial Estate Branch, Sialkot 86 Sadiqabad Branch
Tel. No: (042) 35398661-2 & Tel. No: (052) 3242607-9 Tel. No: (068) 5702162, 5800161,
0317-4484562-4 (068) 5800661 & 5801161
68 Pasrur Road Branch, Sialkot
50 Muridke Branch Tel. No: (052) 3521655, 755 & 855 & 87 Bahawalpur Branch
Tel. No: (042) 37166511-4 & 37981100 (052) 3611655 & 755 Tel. No: (062) 2731703-1
51 Main Branch, Gujranwala Islamic Banking 88 Ahmedpur Sharqia Branch District

Tel. No: (055) 3843560-2 & 111-567-890 69 Sialkot Cantt Branch, Sialkot Bahawalpur
Tel. No: (052) 4560023-7 Tel. No: (062) 2271345 & 0316-8226404, 6 & 8
Islamic Banking
52 Gujranwala Cantt. Branch, Gujranwala 70 Godhpur Branch, Sialkot 89 Hasilpur Branch
Tel. No: (055) 3861931-3 & 5 Tel. No: (052) 4563932-3 Tel. No: (062) 2441481-7 & 2441478
53 Wapda Town Branch, Gujranwala 71 Daska Branch, Distt. Sialkot 90 Club Road Branch, Sargodha
Tel. No: (055) 4291136-7 Tel. No: (052) 6617847-8 Tel. No: (048) 3726021-3
54 Kamokee Branch, Distt. Gujranwala 72 Sheikhupura Branch 91 Pull-111 Branch, Distt. Sargodha
Tel. No: (055) 6813501-6 Tel. No: (056) 3810933 & 3813133 Tel. No: (048) 3791403-4 & 0316-8226449 & 50
55 Main Branch, Faisalabad 73 Nankana Sahib Branch 92 Jauharabad Branch, District Khushab
Tel. No: (041) 2639873, 7-8 & Tel. No: (056) 2876342-3 Tel. No: (0454) 723011-2
(041) 111-567-890
74 Wazirabad Branch 93 Bhalwal Branch
56 Peoples Colony Branch, Faisalabad Tel. No: (055) 6603703-4 & 6608555 Tel. No: (048) 6642224 & 0316-8226331-2
Tel. No: (041) 8555714 & 8555720
75 Ghakkar Mandi Branch 94 Khanewal Branch
57 Ghulam Muhammadabad Branch, Tel. No: (055) 3832611-2 Tel. No: (065) 2551560-3
Faisalabad
76 Main Branch, Multan 95 Kabirwala Br., Distt. Khanewal
Tel. No: (041) 2680114, 110 & 117
Tel. No: (061) 4504018, 4504118, Tel. No: (065) 2400910-3
(061) 4519927 & 4512884
Islamic Banking
58 East Canal Road Branch, Faisalabad 96 Abdul Hakeem Br., Distt. Khanewal
Islamic Banking
Tel. No: (041) 2421381-2 Tel. No: (065) 2441888 & 0316-8226310-2
77 Shah Rukn-e-Alam Branch, Multan
Tel. No: (061) 6784051-4 & 6782081
59 Civil Lines Branch, Faisalabad 97 Mian Channu Branch
Tel. No: (041) 2648105, 8 & 11 78 Bosan Road Branch, Multan Tel. No: (065) 2662201-2
Tel. No: (061) 6210690-2
60 Madina Town Branch, Faisalabad 98 Depalpur Branch
Tel. No: (041) 8735551-2 & 0316-8226451-3 79 Mumtazabad Branch, Multan Tel. No: (044) 4541341-2
Tel No: (061) 6760212-4
61 Jaranwala Branch, Distt. Faisalabad 99 Okara Branch
Tel: No: (041) 4312201-6 80 Gulgasht Colony Branch, Multan Tel. No: (044) 2553012-4 & 2552200
Tel. No: (061)-6222701 & 0316-8226393-5
100 Hujra Shah Muqeem Branch
62 Samundri Branch, Distt. Faisalabad
81 Wapda Town Branch, Multan District Okara
Tel. No: (041) 3423983-4
Tel. No: (061) 6213011 & 0316-8226441-2 Tel. No: (044) 4860401-3 & 0316-8226419-21
63 Painsera Branch, Distt. Faisalabad
82 Azmat Road Br., Dera Ghazi Khan 101 Haveli Lakha Branch
Tel. No: (041) 2557100-11 & 2574300
Tel. No: (064) 2471630-6 Tel. No: (044) 4775412-3
64 Khurrianwala Branch 102 Sahiwal Branch

83 Lodhran Branch
Tel. No: (041) 4360701-2 Tel. No: (040) 4467742-3
Tel. No: (0608) 364766-7
65 Chiniot Branch 84 Rahim Yar Khan Branch 103 Chichawatni Br., Distt. Sahiwal
66 Jhang Branch 85 Liaqatpur Br., Distt. Rahim Yar Khan 104 Layyah Branch

105 Chowk Azam Branch, Distt. Layyah 124 Gojra Branch, Distt. Toba Tek Singh 141 Haidery Branch, Karachi
Tel. No: (060) 6372103-6 & 0316-8226401-3 Tel. No: (046) 3516392 & 3515577 Tel. No: (021) 36638617, 36630409-410 &
0316-8226231-8
106 Kharoor Pacca Branch 125 Kamalia Branch, Distt. Toba Tek Singh
Tel. No: (0608) 341041-2 Tel. No: (046) 3411405-6 142 Jodia Bazar Branch, Karachi
Tel. No: (021) 32441786, 32442208 &
107 Muzafargarh Branch 126 Pir Mahal Branch (021) 32463894
Tel. No: (066) 2422901, 3 & 5 Tel. No: (046) 3361690 & 5
143 Shahrah-e-Faisal Branch, Karachi
108 Fazal Garh Sanawan Branch, 127 Gujrat Branch Tel. No: (021) 34316128, 34316395,
Distt. Muzafargarh Tel. No: (053) 3520591, 2 & 4 (021) 34322150, 34398430 &
Tel. No: (066) 2250214-5 (021) 34535545-46, 53-54
128 Kharian Branch
109 Sheikho Sugar Mills Branch Tel. No: (053) 7602904, 5 & 7 144 DHA Branch, Karachi
Distt. Muzafargarh Tel. No: (021) 35852209, 35845211 &
Tel. No: 0345-8530242-4 129 Pak Pattan Br., Distt. Pak Pattan (021) 35340825
Tel.: (0457) 371781-5
110 Shahbaz Khan Road Branch, Kasur 145 Gulshan-e-Iqbal Branch, Karachi
Tel. No: (0492) 764890-3 130 Arif wala Br., Distt. Pak Pattan Tel. No: (021) 34811830-33 &
Tel.: (0457) 834013, 5 & 6 0316-8226239-45
111 Jalalpur Bhattian Br., Distt. Hafizabad
Tel. No: (0547) 500848-50 131 Chishtian Branch 146 SITE Branch, Karachi
Tel. No: (063) 2501141-2 & Tel. No: (021) 32568330, 32550997 &
112 Hafizabad Branch 0316-8226304-6 (021) 32550903-4
Tel. No: (0547) 541641-4
132 Khanpur Branch 147 Zamzama Branch, Karachi
113 Pattoki Branch Tel. No: (068) 5577719-20 & Tel. No: (021) 35375835 & 35293435
Tel. No: (049) 4422435-6 0316-8226307-9
148 Gole Market Branch, Karachi
114 Ellahabad Branch 133 Narowal Branch Tel. No: (021) 36618932, 36618925 &
Tel. No: (049) 4751130 Tel. No: (0542) 411405 & 0316-8226328-30 0316-8226154-62
115 Khudian Branch 134 Rajanpur Branch 149 Gulistan-e-Jauhar Branch, Karachi
Tel. No: (049) 2791595-6 Tel. No: (0604) 688108 & 0316-8226396 Tel. No: (021) 34020943-5
116 Sambrial Branch SOUTH REGION 150 M. A. Jinnah Road Branch, Karachi
Tel. No: (052) 6523451-3 Tel. No: (021) 32213972 & 32213498
135 Main Branch, Karachi
117 Gagoo Mandi Branch, Distt. Vehari Tel. No: (021) 32436990 & 32444401-5 & 151 Gulbahar Branch, Karachi
Tel. No: (067) 3500311-2 UAN No: (021) 111-567-890 Tel. No: (021) 36607744 & 0316-8226434-5
118 Mailsi Branch, Distt. Vehari 136 Clifton Branch, Karachi 152 North Karachi Branch, Karachi
Tel. No: (067) 3750140-5 Tel. No: (021) 35877773-4, 35861286 & Tel. No: (021) 36920140-5
(021) 35375448
119 Burewala Branch, Distt. Vehari 153 Block-7 Gulshan-e-Iqbal Branch,
Tel. No: (067) 3773110 & 20 & 3355779 137 Garden Branch, Karachi Karachi
Tel. No: (021) 32232877-8 Tel. No: (021) 34815811-2, 34833728 & 777
120 Mandi Bahauddin Branch
Tel. No: (0546) 507602, 3 & 8 138 F. B. Area Branch, Karachi Islamic Banking
Tel. No: (021) 36373782-3 & 36811646 154 Cloth Market Branch, Karachi
121 Bahawalnagar Branch Tel. No: (021) 32442961 & 32442977
Tel. No: (063) 2274795-6 139 Korangi Industrial Area Br., Karachi
Tel. No: (021) 35113898-9, 35113900-1 155 Paria Street Kharadar Branch, Karachi
122 Haroonabad Br., Distt. Bahawalnagar Tel. No: (021) 32201059, 60 & 61
Tel. No: (063) 2251664-5 140 AKU Branch, Karachi
Tel. No: (021) 34852251-3 & 33102498-9 156 Suparco Branch, Karachi
123 Toba Tek Singh Branch Tel. No: (021) 34970560, 34158325-6 &
Tel. No: (046) 2513203-4 (021) 37080810

157 Chandni Chowk Branch, Karachi 175 Metroville Branch, Karachi 192 DHA Phase-IV Branch, Karachi
Tel. No: (021) 34937933 & 34141296 Tel. No: (021) 36752206-7 Tel. No: (021) 35311491-2 &
0316-8226285-7
158 Allama Iqbal Road Branch, Karachi 176 Defence Phase-II Extension Br.,
Tel. No: (021) 34387673-4 Karachi 193 Gulberg Branch, Karachi
Tel. No: (021) 35386910-12 Tel. No: (021) 36340553, 549 &
159 Nishtar Road Branch, Karachi 0316-8226291-2
Tel. No: (021) 32239711-3 & 32239678 177 North Karachi Township Branch,
Karachi 194 New Sabzi Mandi Branch, Karachi
Islamic Banking Tel. No: (021) 36968604-7 Tel. No: (021) 36870506-7 &
160 Waterpump Branch, Karachi 0316-8226409-11
Tel. No: (021) 36312113 & 36312108, 178 Stock Exchange Branch, Karachi
(021) 36312349 & 36311908 Tel. No: (021) 32414003-4 & 32415927-8 195 Clifton Block-08 Branch, Karachi
Tel. No: (021) 35867435-6 &
161 Apwa Complex Branch, Karachi 179 Gulshan-e-Jamal Branch, Karachi 0316-8226425-7
Tel. No: (021) 32253143 & 32253216 Tel. No: (021) 34682682-4
196 Block-02 Gulshan-e-Iqbal Br., Karachi
162 Clifton Block-2 Branch, Karachi 180 Alyabad Branch, Karachi Tel. No: (021) 34988781-2
Tel. No: (021) 35361115-7 Tel. No: (021) 36826727 & 36332517
197 Garden Market Branch, Karachi
163 Malir Branch, Karachi 181 Saudabad Branch, Malir, Karachi Tel. No: (021) 32244195-6 &
Tel. No: (021) 34517982-3 Tel. No: (021) 34111901-5 0316-8226431-3
164 Bahadurabad Branch, Karachi 182 Shireen Jinnah Colony Branch, Karachi 198 Block-N North Nazimabad Branch,
Tel. No: (021) 34135842-3 Tel. No: (021) 34166262-4 Karachi
Tel. No: (021) 36641623-4 &
165 New Challi Branch, Karachi Islamic Banking 0316-8226436-38
Tel. No: (021) 32625246 & 32625279 183 Al-Tijarah Centre Branch, Karachi
Tel. No: (021) 34169251-3 199 Marriot Road Branch, Karachi
166 Shah Faisal Colony Branch, Karachi Tel. No: (021) 32461840-42 &
Tel. No: (021) 34602446-7 184 Barkat-e-Haidery Branch, Karachi 0316-8226428-30
Tel. No: (021) 36645688-9
167 Zaibunissa Street Saddar Br., Karachi 200 Gulshan-e-Maymar Branch, Karachi
Tel. No: (021) 35220025-7 185 Shadman Town Branch, Karachi Tel. No: (021) 36881235-6 &
Tel. No: (021) 36903038-9 0316-8226445-47
168 Liaquatabad Branch, Karachi
Tel No: (021) 34860723-25 186 Enquiry Office Nazimabad No: 2 201 Shersha Branch, Karachi
Branch, Karachi Tel. No: (021) 32583001-3 &
169 Lea Market Branch, Karachi Tel. No: (021) 36601502-5 0317-4484534-6
Tel. No: (021) 32526193-4
Islamic Banking 202 Main Branch, Hyderabad
170 Korangi Township No: 2 Branch, 187 Rashid Minhas Road Br., Karachi Tel. No: (022) 2781528-9, 2782347 &
Karachi Tel. No: (021) 34983878 & 34837443-4 UAN: (022) 111-567-890
Tel. No: (021) 35058041 & 35071181
188 Timber Market Branch, Karachi 203 F. J. Road Branch, Hyderabad
171 North Karachi Ind. Area Branch, Tel. No: (021) 32742491-2 Tel. No: (022) 2728131 & 2785997
Karachi (022) 2780205
Tel. No: (021) 36962851, 52 & 55 189 Khayaban-e-Ittehad Branch, Karachi
Tel. No: (021) 35347413-6 204 Latifabad Branch, Hyderabad
172 F. B. Industrial Area Branch, Karachi Tel. No: (022) 3816309 & 3816625
Tel. No: (021) 36829961-4 190 Bahria Complex-III Branch, Karachi
Tel. No: (021) 35640731-6 35640235-7 205 Qasimabad Branch, Hyderabad
173 Napier Road Branch, Karachi Tel. No: (022) 2651968 & 70
Tel. No: (021) 32713539-40 191 New M. A. Jinnah Road Branch,
Karachi Islamic Banking
174 Gulshan-e-Hadeed Branch, Karachi Tel. No: (021) 34894941-3 206 Isra University Br., Distt. Hyderabad
Tel. No: (021) 34710252 & 256 Tel. No: (022) 2032322 & 2030161-4

207 Prince Ali Road Branch, Hyderabad 226 Dhabeji Branch, Distt. Thatta 245 Gawadar Branch
Tel. No: (022) 2638514 & 2622122 Tel. No: (021) 34420030, 31 & 39 Tel. No: (0864) 211103-5 & 0316-8226454,
5&6
208 S.I.T.E. Branch, Hyderabad 227 Hub Branch, Distt. Lasbela
Tel. No: (022) 3886861-2 Tel. No: (0853) 310225-7 NORTH REGION
246 Main Branch, Peshawar

209 Faqir Jo Pir Branch, Hyderabad 228 Umerkot Branch
Tel. No: (091) 5277914-8 & 5277394
Tel. No: (022) 2612685-6 Tel. No: (0238) 571350 & 356
247 Chowk Yadgar Branch, Peshawar

210 Auto Bhan Road Branch, Hyderabad 229 Nawabshah Branch
Tel. No: (091) 2573335-7 & 2220006
Tel. No: (022) 2100062-3 & 0316-8226313-4 Tel. No: (0244) 363918-9
Islamic Banking
211 Matyari Branch, Distt. Matyari 230 Mirpurkhas Branch 248 Khyber Bazar Branch, Peshawar
Tel. No: (022) 2760125-6 Tel. No: (0233) 821221 & 821317-8 Tel. No: (091) 2566811-3
212 Tando Allah Yar Branch 231 Larkana Branch 249 Main Branch, Rawalpindi
Tel. No: (022) 3890260-4 Tel. No: (074) 4058211-13 Tel. No: (051) 5123123, 4, 5 & 8 &
(051) 5123136-7
213 Sultanabad Branch, Distt. Tando Allah Yar 232 Panjhatti Branch
Tel. No: (022) 3404101-2 Tel. No: (0243) 552183-6 250 Chandni Chowk Branch, Rawalpindi
Tel. No: (051) 4571160, 63, 86 & 87 &
214 Tando Muhammad Khan Branch 233 Ghotki Branch (051) 4571301
Tel. No: (022) 3340371-2 & 0316-8226267-8 Tel. No: (0723) 680305-6
251 22 Number Chungi Branch, Rawalpindi
215 Sukkur Branch 234 Deharki Branch Tel. No: (051) 5563576-7
Tel. No: (071) 5622382, 5622925 & Tel. No: (0723) 644156, 158 & 160
252 Muslim Town Branch, Rawalpindi
0316-8226055-63
Tel. No: (051) 5405506 & 4931112-3
235 Thull Branch
216 Sanghar Branch, Distt. Sanghar Tel. No: (0722) 610153-4 253 Pindora Branch, Rawalpindi
Tel. No: (0235) 543376-7 & Tel. No: (051) 4419020-22
0316-8226246-7 236 Kandkhot Branch
Tel. No: (0722) 572883-6 254 Gulraiz Branch, Rawalpindi
217 Tando Adam Branch, Distt. Sanghar Tel. No: (051) 5595148-9 & 5974073
Tel. No: (0235) 571640-44 237 Jacobabad Branch
Tel. No: (0722) 654041-5 Islamic Banking
218 Shahdadpur Br., Distt. Sanghar 255 Peshawar Road Br., Rawalpindi
Tel. No: (0235) 841982-4 238 Shahdadkot Br., Distt. Qamber Shahdadkot Tel. No: (051) 5460113-7
Tel. No: (074) 4012401-2
219 Shahpur Chakar Br., Distt. Sanghar 256 Bahria Town Branch, Rawalpindi
Tel. No: (0235) 846010-12 239 Dadu Branch Tel. No: (051) 5733772-3 & 5733768-9
Tel. No: (025) 4711417-8 & 0316-8226294-6
220 Golarchi Branch, Distt. Badin
257 Bewal Br., Distt. Rawalpindi
Tel. No: (0297) 853192-4 240 Shikarpur Branch Tel. No: (051) 3360274-5
Tel. No: (0726) 540381-3 & 0316-8226319-21
221 Talhar Branch, Distt. Badin
Tel. No: (0297) 830387-9 258 Wah Cantt. Branch, Distt. Rawalpindi
241 Main Branch, Quetta Tel. No: 0317-4484551-3
Tel. No: (081) 2821610 & 2821641
222 Deh. Sonhar Branch, Distt. Badin
Tel. No: (0297) 870729 & 870781-3 259 Main Branch, Islamabad
Islamic Banking Tel. No: (051) 2348174 & 78 &
242 Shahrah-e-Iqbal Branch, Quetta
223 Matli Branch UAN: (051) 111-567-890
Tel. No: (081) 2820227-30 & 37
Tel. No: (0297) 840171-2
260 G-9 Markaz Branch, Islamabad
224 Tando Bago Branch, Distt. Badin 243 Chamman Branch Tel. No: (051) 2850171-3
Tel. No: (0297) 854554-6 Tel. No: (0826) 613685 & 0316-8226342-4
Islamic Banking
225 Buhara Branch, Distt. Thatta 244 Khuzdar Branch 261 I-10 Markaz Branch, Islamabad
Tel. No: (0298) 613169 & 0316-8226439-40 Tel. No: (0848) 412861-3 & 0316-8226466-68 Tel. No: (051) 4101733-5

262 I-9 Markaz Branch, Islamabad 280 Jutial Branch, Distt. Gilgit
Tel. No: (051) 4858101-3 Tel. No: (05811) 457233-5
263 E-11 Branch, Islamabad 281 Aliabad Branch, Hunza

Tel. No: (051) 2228757-8 Tel. No: (05813) 455000, 455001 &
(05813) 455022
264 DHA Phase-II Br., Islamabad
Tel. No: (051) 5161967-9 & 5161970-72 282 Gahkuch Branch
Tel. No: (05814) 450409-10
Islamic Banking
265 F-8 Markaz Branch, Islamabad 283 Skardu Branch
Tel. No: (051) 2818019-21 Tel. No: (05815) 450327 & 450188-9
266 G-11 Markaz Branch, Islamabad 284 Abbottabad Branch

Tel. No: (051) 2363366-68 Tel. No: (0992) 385231-3 & 383073-75
267 F-11 Markaz Branch, Islamabad 285 Jhelum Branch

Tel No: (051) 2101076-7 & 0316-8226282-4 Tel. No: (0544) 625794-5
268 F-6 Branch, Islamabad 286 Chitral Branch, Distt. Chitral

Tel. No: (051) 2826573-4 & 0316-8226303 Tel. No: (0943) 412078-9
269 PWD Branch, Islamabad 287 Chakwal Branch

Tel. No: (051) 5708789, 90 & 91 Tel. No: (0543) 543128-30
270 Lathrar Road Branch, Tarlai, 288 Mardan Branch

Distt. Islamabad Tel. No: (0937) 864753-7
Tel. No: (051) 2241661-5
289 Muzaffarabad Branch
271 Soan Garden Br., Distt. Islamabad Tel. No: (0582) 2920025-6
Tel. No: (051) 5738940-2
Islamic Banking
272 Gujar Khan Branch 290 Chillas Branch, Distt. Diamer
Tel. No: (051) 3516328, 29 & 30 Tel. No: (05812) 450631-2
273 Waisa Branch, Distt. Attock Islamic Banking

Tel. No: (057) 2651068-9 291 Mingora Branch, Swat
Tel. No: (0946) 714355, 714400 &
Islamic Banking 0316-8226273-75
274 Swabi Branch, Distt. Swabi
Tel. No: (0938) 221741-45 292 Battagram Branch
Tel. No: (0997) 311044-6
275 Mirpur Branch, (AJK)
Tel. No: (05827) 444488 & 448044 293 Mansehra Branch
Tel. No: (0997) 301931-6
276 Islamgarh Branch, (AJK)
Tel. No: (05827) 423981-2 294 Kohat Branch, Distt. Kohat
Tel. No: (0922) 511011 & 511033
277 Jattlan Branch, Distt. Mirpur (AJK)
Tel. No: (05827) 403591-4 295 IB - Nowshera Branch, Distt. Nowshera
Tel. No: (0923) 611545-8
278 Gilgit Branch
Tel. No: (05811) 453749, 450498 &
(05811) 451838
279 Denyore Branch, Distt. Gilgit

Tel. No: (05811) 459986-7

FOREIGN
CORRESPONDENTS
Country Name of Bank
Afghanistan Banke Millie Afghan

Habib Bank Limited
Argentina Banco De Galicia Y Buenos Aires

Banco Credicoop Cooperativo Limitado
Australia Citibank Na Australia

Hsbc Bank Australia Limited
J. P. Morgan Chase Bank Nv
National Australia Bank Ltd.
Mizuho Bank, Ltd. Sydney Branch
Austria Erste Group Bank Ag Austria

Oberbank Ag
Raiffeisen Bank International Ag
Raiffeisenlandes Bank Vorarlberg
Raiffeisenlandesbank Niederösterreich-Wien Ag Austria
Raiffeisenlandesbank Oberösterreich Aktiengesellschaft Austria
Erste Bank Der Oesterreichischen Sparkassen Ag
Bahrain Al-Baraka Islamic Bank

Habib Bank Limited
Standard Chartered Bank
The Arab Investment Co.
United Bank Limited
Allied Bank Limited, Wholesale Banking Branch
Bank Alfalah Limited Bahrain
Bank Al Habib Limited
Bulgaria Unicredit Bulbank Ad

Citibank Europe Plc Bulgaria
Bangladesh Brac Bank Bangladesh

Habib Bank Limited
Woori Bank
Bank Alfalah Limited (Bangladesh - Dhaka Branch)
Southeast Bank Limited
Belarus Belarusbank
Belgium Belfius Bank Sa/Nv

Commerzbank Ag
Deutsche Bank Ag
Habib Bank Limited
Kbc Bank Nv
Byblos Bank Europe S.a.
Brazil Banco Fibra Sa Brazil

Banco Do Brasil S.a.
Itau Unibanco S/A (Successor Of Banco Itau Bba S.a.)
Canada Canadian Imperial Bank Of Commerce

Federation Des Caisses Desjardins Du Quebec Canada
Habib Canadian Bank
Hsbc Bank Canada
Royal Bank Of Canada
Chile Banco De Credito E Inversiones

China Agricultural Bank Of China

Bank Of America N.a
Bank Of Beijing
Bank Of China
Bank Of Communications
Bank Of Jiangsu Co
Bank Of Shanghai
China Citic Bank
China Construction Bank Corporation
China Everbright Bank
China Merchants Bank
Citibank (China) Co. Ltd.
Commerzbank Ag
HSBC Bank (China) Company Ltd.
Hua Xia Bank
Industrial And Commercial Bank Of China
J. P. Morgan Chase Bank (China) Company Ltd.
Jiangsu Jiangyin Rural Commercial Bank Co Ltd
Mizuho Bank (China) Co. Ltd.
Qilu Bank Co., Ltd.
Shanghai Pudong Development Bank
Skandinaviska Enskilda Banken Ab
Standard Chartered Bank (China) Limited
Zhejiang Tailong Commercial Bank
Agricultural Development Bank Of China, The
Bank Of Hebei (Formerly Shijiazhuang City Commercial Bank)
Export-Import Bank Of China, The
Guangdong Huaxing Bank Co.,Ltd
Industrial Bank Of Korea (China) Limited
Kbc Bank Nv
Wells Fargo Bank, Na, Shanghai Branch
Jinan Rural Commercial Bank Co.,Ltd(Formerly Shandong
Jinan Runfeng Rural Cooperative Bank)
Sumitomo Mitsui Banking Corporation (China) Limited Hangzhou Branch
Weifang Rural Commercial Bank Co., Ltd
Shandong Zhangdian Rural Commercial Bank
Zhejiang Mintai Commercial Bank
Bank Of Ruifeng
Colombia Bancolombia S.a.
Cyprus Bank Of Cyprus Public Company Ltd.

Hellenic Bank Public Company Ltd.
Czech Republic Ceska Sporitelna As

Ceskoslovenska Obchodni Banka
Citi Bank Europe Plc
Commerz Bank Ag
Komercni Banka As
Unicredit Bank Czech Republic
Denmark Danske Bank

Sydbank A/S
Egypt Banque Misr Sae

Citibank Cairo
Mashreq Bank Psc
Ethiopia Dashen Bank Sc

Cooperative Bank Of Oromia S.c.

Finland Danske Bank

Op Corporate Bank Plc
France Banque Palatine France

HSBC France (Formerly Hsbc Ccf)
Keb Hana Bank France
National Bank Of Pakistan
Credit Du Nord
Societe Generale
CM - Cic Banques
Germany Commerzbank Ag
Danske Bank
Deutsche Bank Ag
DZ Bank Ag Deutsche Zentral Genossenschaftsbank Germany
Hamburger Sparkasse
HSH Nordbank Ag
Landesbank Baden-Wurttemerg
M. M. Warburg U. Co
Sparkasse Dortmund
Sparkasse Krefeld
Sparkasse Westmuensterland
J.P.morgan Ag
Kreissparkasse Steinfurt
Greece Alpha Bank Ae

Piraeus Bank Sa
Hong Kong Bank Of America Na

Citibank N.a.
Deutsche Bank Ag Hongkong
Habib Bank Zurich Hongkong Limited Hongkong
The Hong Kong And Shanghai Banking Corporation
J. P. Morgan Chase Bank N.a.
Mashreqbank Psc
Shinhan Bank, Hong Kong
Standard Chartered Bank (Hong Kong) Limited
Sumitomo Mitsui Banking Corporation
The Bank Of New York Mellon Hongkong
Wells Fargo Bank Na
Commerzbank Ag
Unicredit Bank Ag Hong Kong Branch (Hypovereinsbank Hong Kong Branch)
KBC Bank Nv, Hong Kong
Hungary CIB Bank Ltd.

Raiffeisen Bank Zrt
Unicredit Bank Hungary Zrt
India Citibank N.a.

Deutsche Bank Ag
Hongkong And Shanghai Banking Corporation Limited
ICICI Bank Limited
J. P. Morgan Chase Bank Na
Kalupur Commercial Co-Op
Mashreqbank Psc
Punjab And Sind Bank
Punjab National Bank

Bank Of Ceylon
DCB Bank Limited
Emirates Nbd Bank (P.j.s.c)
Indonesia Bank Indonesia

Bank Mandiri Jakarta
Citibank N.a.
PT Bpd Jawa Barat Dan Banten Indonesia
PT Bank Hsbc Indonesia
MUFG Bank, Ltd. Jakarta Branch
Ireland Citibank Europe Plc

Danske Bank A/S
Italy Banca Carige Spa

Banca Di Credito Popolare
Banca Ubae Spa
Banco Popolare Di Sondrio
Bper Banca Spa Italy
Cassa Di Risparmio In Bologna Spa Italy
Commerzbank Ag
Credito Valtellinese
Deutsche Bank Spa
Intesa Sanpaolo S.p.a.
Unicredit S.p.a
UBI Banca S.p.a. (Formerly Banca Adriatica S.p.a.)
Banco Bpm Spa
Cassa Di Risparmio Di Fermo Spa
Iccrea Banca - Istituto Centrale Del Credito Cooperativo
Japan Citibank Japan Limited

Deutsche Bank Ag
Hong Kong & Shanghai Banking Corporation., (The)
Mizuho Corporate Bank
Resona Bank Ltd.
Saitama Resona Bank Ltd.
The Tokushima Bank Limited
MUFG Bank, Ltd.
Jordan Citibank N.a.
Kenya Kenya Commercial Bank Limited
Korea (South) Busan Bank

Citibank Korea Inc.
Daegu Bank Korea
Keb Hana Bank
Hongkong & Shanghai Banking Corporation Limited
Industrial Bank Of Korea
Jpmorgan Chase Bank
Kookmin Bank
Nonghyup
Shinhan Bank
Standard Chartered Bank Korea Ltd
Woori Bank

MUFG Bank, Ltd., Seoul Branch

Suhyup Bank
Kuwait Citibank Na
Commercial Bank Of Kuwait Sak
National Bank Of Kuwait
Kyrgyzstan National Bank Of Pakistan Bishkek Branch
Latvia JSC Citadele Banka
Lebanon Banque Libano-Francaise Sal

Citibank Na-Beirut Branch
First National Bank S.a.l.
Macedonia Silk Road Bank Ad Skopje
Malaysia Citibank Berhad

Hong Leong Bank Bhd
HSBC Bank Malaysia Berhad
J. P. Morgan Chase Bank Berhad
Standard Chartered Bank Malaysia Berhad
MUFG Bank (Malaysia) Berhad
Sumitomo Mitsui Banking Corporation Malaysia Berhad
Malta Akbank T.a.s. (Malta Branch)

Credit Europe Bank N.v. Malta Branch
Mauritius Habib Bank Limited

The Mauritius Commercial Bank Limited
Standard Chartered Bank (Mauritius) Ltd
Mexico Banco Nacional De Mexico Sa
Morocco Attijariwafa Bank

Citibank Maghreb
Nepal Himalayan Bank
Netherlands Abn-Amro Bank N.v.

Credit Europe Bank N.v.
Deutsche Bank Ag
Habib Bank Limited
Commerzbank Ag Kantoor Amsterdam
HSBC Bank Plc.
New Zealand Bank Of New Zealand
Norway DNB Bank Asa

Danske Bank As
Skandinaviska Enskilda Banken
Oman Bank Sohar Saog

Bank Dhofar (S.a.o.g.)
Panama Banesco S.a.
Philippines Asian Development Bank

The Bank Of Tokyo-Mitsubishi Ufj Ltd.

Portugal Banco Bpi Sa

Caixa Central De Credito Agricola Mutuo
Qatar The Commercial Bank (Q.S.c)

Mashreq Bank
United Bank Limited
Barwa Bank
Doha Bank
Romania Banca Commerciala Romana Sa

Citibank Europe Plc, Dublin-Sucursala Romania
Unicredit Bank Sa Romania
Russian Federation Credit Bank Of Moscow (Public Joint Stock Company)

Citibank N.a.
Saudi Arabia Alawwal Bank

Al Inma Bank
J. P. Morgan Chase Bank
National Commercial Bank (The)
Samba Financial Group
Bank Al-Jazira
Serbia Unicredit Bank Srbija A.d.
Singapore Abn Amro Bank Nv

Bank Mandiri (Persero) Pt
Bank Of America Na
Bank Of Tokyo Mitsubishi Ufj Ltd.
Citibank N.a.
Commerzbank Ag
Deutsche Bank Ag
Habib Bank Limited
Hongkong & Shanghai Banking Corporation Limited
HSH Nordbank Ag
Intesa Sanpaolo Spa
Jpmorgan Chase Bank National Association Singapore
KBC Bank Singapore Branch
Mizuho Corporate Bank Ltd
Rabobank
Shinhan Bank
Oversea-Chinese Banking Corporation Limited
Toronto Dominion Bank
Slovakia Ceskoslovenska Obchodna Banka As

Slovenska Sporitelna, A.s.
Tatra Banka A.s.
Slovenia Unicredit Banka Slovenija Dd

Nova Kreditna Banka Maribor D.d.
South Africa Citibank South Africa

Firstrand Bank Ltd.
HBZ Bank Limited
Standard Bank Of South Africa Limited,The

Spain Banco De Sabadell

Caixa Bank Sa Spain
Commerzbank Ag
Deutsche Bank Sae Spain
HSBC Bank Plc
Kutxabank Sa
BMCE Bank International, Sau
Sri-Lanka Bank Of Ceylon

Commercial Bank Of Ceylon Limited
Habib Bank Limited
Hatton National Bank Limited
MCB Bank Limited
People’s Bank
The Hongkong & Shanghai Banking Corporation Limited
Sweden Danske Bank

Skandinaviska Enskilda Banken Ab
Svenska Handelsbanken Ab
Switzerland Arab Bank (Switzerland) Ltd.

Banque Cantonale Vaudoise
Banque De Commerce Et De Placements S.a.
CA Indosuez Switzerland Sa Switzerland
Habib Bank Ag Zurich
UBS Ag
United Bank Switzerland Ag
Zurcher Kantonalbank
Hinduja Bank (Switzerland) Ltd
Barclays Bank (Suisse) S.a.
HSBC Bank Plc
Luzerner Kantonalbank
Taiwan Citibank Taiwan Limited

Mizuho Corporate Bank Ltd.
Standard Chartered Bank (Taiwan) Limited
HSBC Bank (Taiwan) Limited
Sunny Bank Ltd
Tajikistan NBP Pakistan Subsidiary Bank
Tanzania UBL Bank (Tanzania) Limited
Thailand Citibank N.a.

Kasikornbank Public Company Ltd
Krung Thai Bank Public Co Ltd Thailand
Standard Chartered Bank (Thai) Plc
Sumitomo Mitsui Banking Cororation
Thanachart Bank Public Company Limited
The Siam Commercial Bank Public Company Limited
Bank Of Ayudhya Public Company Limited
Mizuho Bank, Ltd., Bangkok Branch
Tunisia Citi Bank Na

Tunis International Bank
Turkey Akbank T.A.S.

Alternatifbank A.S.
Citibank A.S.
QNB Finansbank
Habib Bank Limited
Kuveyt Turk Katilim Bankasi A.S
Turkiye Cumhuriyeti Ziraat Bankasi A.S. Turkey
Turkey Garanti Bankasi A.S.
Turkiye Finans Katilim Bankasi A.S.
Turkiye Vakiflar Bankasi Tao
Yapi Ve Kredi Bankasi A.S.
Albaraka Turk Participation Bank
Denizbank A.S.
Turkmenistan National Bank Of Pakistan
U.A.E. Abu Dhabi Commercial Bank

Citibank N.A.
Deutsche Bank AG
Dubai Islamic Bank
Emirates Islamic Bank
Emirates Nbd Bank PJSC
First Abu Dhabi Bank
Habib Bank Limited
Mcb Bank Limited Dubai UAE
Mashreq Bank PSC
National Bank Of Fujairah
United Bank Limited
National Bank Of Ras Al-Khaimah, The
Bank Alfalah Limited (Dubai Branch)
Keb Hana Bank Abudhabi Branch
U.K. Bank Mandiri (Europe) Limited

Bank Of Cyprus Uk
Bank Of Ireland (Uk) Plc
Citibank N.a.
Habib Bank- Uk Plc
HSBC Bank Plc
Mashreqbank Psc
Northern Bank Ltd.uk
Sonali Bank (Uk) Ltd
Deutsche Bank Ag
Zenith Bank (Uk) Ltd
U.S.A. Abn-Amro Capital Usa Llc

Bank Of America Na
Bank Of New York Mellon
Bank Of Tokyo Mitsubishi Ufj Limited
BOKF,NA
Branch Banking & Trust Co.
Citibank N.a.
Citizen Bank N.a Usa
Comerica Bank
Deutsche Bank Trust Company Americas
East-West Bank
Habib American Bank
International Finance Corporation
J. P. Morgan Chase Bank

Mashreqbank PSC
MUFG Union Bank National Association USA
New York Commercial Bank USA
PNC Bank National Association USA
Regions Bank
Shinhan Bank America
UMB Bank NA
US Century Bank
Wells Fargo Bank NA
Woori Bank
U.S. Bank N.A.
First Tennessee Bank N.A.
Nonghyup Bank, New York Branch
Peoples United Bank, N.A.
Uzbekistan National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan
Vietnam Citibank NA
J. P. Morgan Chase Bank NA
Shinhan Bank Vietnam
AA Binh Commercial Joint Stock Bank
Kookmin Bank / Ho Chi Minh City Branch

PROXY FORM
27th Annual General Meeting
I / We of
being member(s) of SONERI BANK LIMITED
and holder of ordinary shares.
Register Folio No.
CDC participant I.D. No.: Sub-Account No.:
CNIC No.: or Passport No.:
hereby appoint of or failing him / her

of who is / are also member(s) of
SONERI BANK LIMITED as my / our proxy to attend and vote for me / our behalf at the 27th Annual General
Meeting of the Bank to be held on 28 March 2019 or at any adjournment thereof.
Affix Rs. 5 (Signatures should agree with the

Revenue specimen signature registered
Stamp with the Bank)
Dated this day of 2019 Signature of Shareholder
Signature of Proxy
1. WITNESS 2. WITNESS
Signature : Signature :
Name: Name:
Address: Address:
CNIC No.: CNIC No.:
or Passport No: or Passport No:
IMPORTANT:
1. This Proxy Form, duly completed and signed, must be received at the Registered Office of the Bank
at SONERI BANK LIMITED, Rupali House, 241-242 Upper Mall Scheme, Anand Road, Lahore-54000,
not less than 48 hours before the time of holding the meeting.
2. No person shall act as Proxy unless he / she himself / herself is a member of the Company, except
that a corporation may appoint a person who is not a member.
3. If a member appoints more than one proxy and more than one instruments of proxy are deposited
by a member with the Company, all such instruments of proxy shall be rendered invalid.
4. CDC Shareholders and their Proxies should attach an attested photocopy of their Computerized
National Identity Card (CNIC) or Passport with the proxy form before submission to the Company.
(Original CNIC / Passport is required to be produced at the time of the meeting).
5. In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen
signature of the nominee shall be submitted along with proxy form to the Company.
Soneri Bank Limited
AFFIX
CORRECT
POSTAGE
The Company Secretary

Soneri Bank Limited
Rupali House 241-242
Upper Mall Scheme
Anand Road
Lahore-54000
ANNUAL REPORT 2018
Soneri Bank Limited
Soneri Bank Limited
Tel: (021) 111-567-890

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STROKE OF

Vision, Mission .................................................................................................... 04 Cash Flow Analysis.............................................................................................62

WE ARE CUSTOMER CENTRIC

WE HAVE HIGH MORAL STANDARDS

Rs. 17.99 BILLION

EARNINGS PER SHARE

ADVANCES TO DEPOSIT RATIO TRADE VOLUMES

74.26% Rs. 367.16

1991 1992 2000 2004 2008 2013 2015 2016 2018

Development In Literacy (DIL)

Contribution To Healthcare Pakistan Carpet Manufacturers & Exporters Association

16 SONERI BANK LIMITED SONERI BANK LIMITED 17

Car Finance Bancassurance Payroll Solution

Soneri Current Account Silver Gold Platinum

20 SONERI BANK LIMITED SONERI BANK LIMITED 21

22 SONERI BANK LIMITED SONERI BANK LIMITED 23

Roshan Aghaz & Roshan Aghaz Takaful

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Soneri Jari Account Soneri Mustaqeem - Meaadi Account

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Car Ijarah works through a car rental agreement, under

Investment Banking its full potential with a focus on socio-economic development,

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32 SONERI BANK LIMITED SONERI BANK LIMITED 33

36 SONERI BANK LIMITED SONERI BANK LIMITED 37

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CHAIRMAN REGISTERED OFFICE

44 SONERI BANK LIMITED

Audit Committee of the Board

1. Mr. Inam Elahi Chairman

Credit Committee of the Board

1. Mr. Nooruddin Feerasta Chairman

Human Resource & Remuneration Committee of the Board

1. Mr. Manzoor Ahmed Chairman

Risk Management Committee of the Board

1. Mr. Manzoor Ahmed Chairman

Committee of Independent Directors of the Board

1. Mr. Jamil Hassan Hamdani Chairman

IT Committee of the Board

1 Mr. Amin A. Feerasta Chairman

SONERI BANK LIMITED 45

Audit Committee Terms of Reference

Credit Committee Terms of Reference

Risk Management Committee Terms of Reference

Human Resource & Remuneration Terms of Reference

Committee of Independent Directors Terms of Reference

IT Committee Terms of Reference

46 SONERI BANK LIMITED

Board Human Board

1. Mr. Alauddin Feerasta 6 6 * * 4 4 * * * * * * * *

2. Mr. Mohammad Aftab Manzoor 6 6 * * 4 4 * * 4 4 * * * *

3. Mr. Nooruddin Feerasta 6 4 4 2 4 2 * * * * * * * *

4. Mr. Amin A. Feerasta 6 5 * * * * * * 4 4 * * - -

5. Mr. Muhammad Rashid Zahir

6. Mr. Manzoor Ahmed

7. Mr. Inam Elahi 6 6 4 4 * * 4 4 4 4 1 1 - -

8. Mr. Jamil Hassan Hamdani 6 6 4 4 * * 4 4 * * 1 1 - -

*Represents not a member of the Committee

SONERI BANK LIMITED 47