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Bank Al Habib Limited
Annual Report 2000
Contents
Board of Directors
A Tribute to (Late) Hamid D. Habib
Directors' Report
Auditors' Report
Balance Sheet
Profit and Loss Account
Cash Flow Statement
Notes to the Accounts
Notice of Annual General Meeting
Pattern of Shareholding
Branch Network
Board of Directors
Chairman
Ali Raza D. Habib
Chief Executive & Managing Director
Abbas D. Habib
Directors
Faiz N. Abdulali
Qumail R. Habib*
Anwar Haji Karim
Istaqbal Mehdi
Murtaza H. Habib
Syed Mazhar Abbas*
Hasnain A. Habib
Salman H. Habib
*Denotes Executive Director
Company Secretary
Mahmood S. Allarakhia
A Tribute to (Late) Hamid D. Habib
The Board of Directors, Management and Staff of Bank AL Habib Limited wish to place on record their
profound grief and deep sorrow on the sad demise of (Late) Hamid D. Habib, Founder Chairman 
of the Bank, after a brief period of illness in Karachi on May 25, 2000. They also wish to express the
invaluable contributions made by him towards the growth, development and progress of the
Bank since its inception. He was a source of inspiration for this institution and will always
be remembered as a warm and humble person.
He was always held in high esteem for his strong moral and ethical values and his presence was
always felt wherever he went due to his charismatic and dynamic personality. He believed in achieving
excellence and remained successful in whatever he did through sheer perseverance and zeal.
His selfless devotion towards social and philanthropic causes was immense. He always took
personal interest in the welfare of orphans, widows and the poor and remained instrumental in
the development of orphanages, schools, hospitals and charitable trusts. On the other side, he
was also a keen sportsman, particularly golf, which he played till his last days.
May Allah rest his soul in eternal peace. 'AAMEEN'
Directors' Report
The Board of Directors is pleased to present you the Tenth Annual Report for the year ended December 31,
2000.
AI-Hamdolillah, the performance of the Bank during the year has been satisfactory. The operating results for
the year and appropriations are as follows:
(Rupees in '000)
Profit for the year before tax 403,178
Taxation (250,000)
------------
Profit for the year after tax 153,178
Unappropriated Profit brought forward 2,891
------------
Profit available for Appropriation 156,069
Appropriations:
Transfer to Statutory Reserve 31,000
Proposed - Fully paid Bonus Shares
in the ratio of 20 Ordinary
Shares for every 100 shares
held 120,226
------------
(151,226)
------------
Unappropriated Profit carried forward 4,843
==========
Earnings per share (pre-tax) Rs. 6.71
Performance Review
By the Grace of Allah, in the year 2000, the Bank has continued to make satisfactory progress in all areas of
its operations. With the continued support of the customers, deposits have increased by Rs. 3.709 billion. The
Bank's advances increased by Rs. 3.796 billion and foreign trade business registered an overall growth of
Rs. 12.088 billion, as compared to the corresponding year. In spite of the low interest margins during the first
half of the year, the Bank's profitability has increased mainly due to increase in yields on Treasury Bills that
consequently led to an increase in lending rates in the last quarter.
The financial highlights are as under:
(Rupees in million)
Dec. 31, 2000 Dec. 31, 1999
Total Customers' Deposits 17,822.60 14,112.90
Total Advances 14,722.10 10,925.30
Shareholders' Equity 1,322.20 1,169.00
Foreign Trade Business 38,613.80 26,525.50
In order to provide additional services to customers, the Bank entered into an agreement with a local
commercial bank to sell their Rupee Travellers' Cheques at all branches. Further, Sui gas bills of account
holders can now be paid at all our Karachi branches, a facility which shall Insha-Allah be extended to all
branches. The Bank obtained membership of SWIFT (Society for World-wide Inter-bank Financial Telecom-
munication) to expeditiously facilitate settlement of cross border transactions pertaining to international
trade and foreign exchange business.
The Bank's outlook for the year 2001 is optimistic in view of the steps taken by the Government to revive the
economy and we are hopeful that the Bank shall Insha-Allah continue to maintain its progress. The Bank has
embarked on a programme of automation to link all the branches of the Bank throughout the Country via
satellite communication network to further improve operational efficiency and customer services.
Branch Network
The Bank opened branches at Jodia Bazar, Karachi and Rahim Yar Khan during the year, bringing the total
number of branches to 32. Insha-Allah, in 2001, we plan to continue the expansion of our branch network.
Directors
After the sad demise of the Founder Chairman of our Bank, Mr. Hamid D. Habib, the Board appointed the
undersigned as Chairman of the Bank and to fill up the casual vacancy, Mr. Salman H. Habib was co-opted
as Director.
During the year, Mr. Liaquat H. Merchant, resigned as a Director of the Bank owing to personal commitments.
The Board acknowledges his invaluable contributions and dedicated support during his tenure as Director
with the Bank. To fill up the casual vacancy, Mr. Syed Mazhar Abbas, a banker by profession was appointed
as Director.
Pattern of Shareholding
The statement of pattern of shareholding of the Bank as at December 31,2000.
Auditors
Our present auditors, Messrs Hyder Bhimji & Company, Chartered Accountants, retire and being eligible,
offer themselves for reappointment.
General
We are grateful to our customers for their support, to the State Bank of Pakistan for their continued guidance
and to our foreign and local correspondent banks for their valuable services. We also thank all our staff
members for their sincere and dedicated services, which enabled the Bank to achieve these results.
On Behalf of the Board of Directors
ALI RAZA D. HABIB
Karachi: February 26, 2001. Chairman
Auditors' Report to the Members
We have audited the annexed Balance Sheet of Bank AL Habib Limited as at December 31,2000, and the
related Profit and Loss Account and Statement of Changes in Financial Position (Cash Flow Statement)
together with the notes forming part thereof for the year then ended, in which are incorporated the unaudited
certified returns from all the branches except for eleven branches which have been audited by us 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 our audit and after due verification thereof, found them satisfactory and we
report that:
(a) in our opinion proper books of account have been kept by Bank AL Habib Limited as required by the
Companies Ordinance, 1984, and the returns referred to above received from the branches have been
found adequate for the purposes of our audit;
(b) in our opinion:
i) the Balance Sheet and Profit and Loss Account and Statement of Changes in Financial Position
(Cash Flow Statement) together with the notes thereon have been drawn up in conformity with
the Banking Companies Ordinance, 1962, and the Companies Ordinance, 1984, and are in
agreement with the books of account and are further in accordance with accounting policies
consistently applied;
ii)  the expenditure incurred during the year was for the purpose of the Bank's business; and
iii) the business conducted, investments made and expenditure incurred during the year were in
accordance with the objects of the Bank and the transactions of the Bank which have come to
our notice have been within the powers of the Bank;
(c) in our opinion and to the best of our information and according to the explanations given to us, the
Balance Sheet and the Profit and Loss Account and Statement of Changes in Financial Position (Cash
Flow Statement) together with the notes forming part thereof give the information required by the
Banking Companies Ordinance, 1962, and the Companies Ordinance, 1984, in the manner so required
and give a true and fair view of the state of the Bank's affairs as at December 31, 2000, and its true
balance of the profit for the year then ended; and
(d) in our opinion, Zakat deductible at source under the Zakat and Ushr Ordinance, 1980, was deducted
and deposited in the Central Zakat Fund established under Section 7 of that Ordinance.
Karachi: February 26, 2001. HYDER BHIMJI & CO.
Chartered Accountants
Balance Sheet as at December 31, 2000
2000 1999
Note (Rupees in '000)
ASSETS
Cash 4 1,437,760 1,839,504
Balances with Other Banks 5 1,785,533 1,590,050
Money at Call and Short Notice 1,490,000 180,000
Investments 6 3,783,664 4,600,990
Advances - (net of provision) 7 14,722,099 10,925,299
Operating Fixed Assets. 8 255,615 241,841
Capital Work-in-Progress 9 35,189 20,869
Other Assets 10 627,834 471,634
------------ ------------
24,137,694 19,870,187
LIABILITIES
Deposits and Other Accounts 11 17,822,654 14,112,870
Borrowings From Other Banks, Agents etc. 12 4,327,974 4,035,320
Bills Payable 121,078 146,985
Other Liabilities 13 555,674 405,993
------------ ------------
22,827,380 18,701,168
------------ ------------
Net Assets 1,310,314 1,169,019
========== ==========
REPRESENTED BY:
Share Capital 14 601,128 500,940
Reserve for proposed issue of Bonus Shares 120,226 100,188
Reserve Fund and Other Reserves 15 596,000 565,000
Unappropriated Profit 4,843 2,891
------------ ------------
Shareholders' Equity 1,322,197 1,169,019
Deficit on Revaluation of Securities (11,883) --
------------ ------------
1,310,314 1,169,019
MEMORANDUM ITEMS:
Bills for Collection 16 3,185,123 2,619,786
Acceptances, Endorsements and Other
Obligations 3,936,717 2,064,833
Contingent Liabilities and Commitments 17 -- --
The annexed notes form an integral part of these accounts.
Ali RAZA D. HABIB ABBAS D. HABIB ANWAR HAJI KARIM FAIZ N. ABDULALI
Chairman Chief Executive and Director Director
Karachi: February 26, 2001. Managing Director
Profit and Loss Account for the year ended December 31, 2000
2000 1999
Note (Rupees in '000)
Mark-up / Interest and Discount and / or Return Earned 1,961,055 1,878,610
Less: Cost/Return on Deposits, Borrowings etc. (1,493,632) (1,443,206)
------------ ------------
467,423 435,404
Fees, Commissions and Brokerage 115,908 82,270
Profit from Investment Securities 14,185 10,496
Dividend Income 7,778 1,854
Other Operating Income 18 229,169 160,498
------------ ------------
367,040 255,118
------------ ------------
Operating Expenses: 834,463 690,522
Administrative Expenses 19 402,498 333,088
Provisions against Non-Performing Advances 7.2 29,741 4,423
Provision for Diminution in Value of Investments 6 -- (16,974)
------------ ------------
(432,239) (320,537)
------------ ------------
402,224 369,985
Other Income 20 954 2,743
------------ ------------
Profit before Taxation 403,178 372,728
Taxation - Current 21 (250,000) (220,000)
------------ ------------
Profit after Taxation 153,178 152,728
Unappropriated Profit Brought Forward 2,891 6,351
------------ ------------
Profit Available for Appropriation 156,069 159,079
APPROPRIATIONS
Transfer to:
31,000 31,000
Special Reserve -- 25,000
Reserve for Proposed Issue of Bonus Shares 120,226 100,188
------------ ------------
(151,226) (156,188)
------------ ------------
Unappropriated Profit Carried Forward 4,843 2,891
========== ==========
The annexed notes form an integral part of these accounts.
Ali RAZA D. HABIB ABBAS D. HABIB ANWAR HAJI KARIM FAIZ N. ABDULALI
Chairman Chief Executive and Director Director
Karachi: February 26, 2001. Managing Director
Cash Flow Statement for the year ended December 31, 2000
2000 1999
(Rupees in '000)
Cash Flow From Operating Activities
Profit before Taxation 403,178 372,728
Less' Dividend Income (7,778) (1,854)
Gain on Disposal of Fixed Assets (954) (2,743)
------------ ------------
394,446 368,131
Add ' Adjustment for Non-Cash Charges:
Depreciation 32,513 27,190
Provision Against investments -- (16,974)
Provision Against Advances 29,741 4,423
------------ ------------
62,254 14,639
------------ ------------
456,700 382,770
(Increase) / Decrease in Operating Assets:
Government Securities 853,641 2,436,275
Advances (3,826,541) (3,365,835)
Other Assets (Excluding Advance Tax) (153,950) (155,334)
------------ ------------
(3,126,850) (1,084,894)
Increase / (Decrease) in Operating Liabilities:
Deposits and Other Accounts 3,709,784 886,925
Bills Payable (25,907) 12,575
Other Liabilities (Excluding Provision for Taxation) 159,742 54,787
------------ ------------
3,843,619 954,287
Cash Inflow Before Tax 1,173,469 252,163
Income Tax Paid (271,841) (266,802)
------------ ------------
Net Cash Inflow / (Outflow) from Operating Activities 901,628 (14,639)
------------ ------------
Net Cash Inflow / (Outflow) from Operating Activities    901,628 (14,639)
Cash Flow From Investing Activities
Net (Purchase) of Investment Securities (36,315) (21,142)
Dividend Income 5,528 1,854
Fixed Capital Expenditure (60,711) (79,451)
Sale Proceeds of Fixed Assets 1,058 2,994
------------ ------------
Net Cash (Outflow) from Investing Activities (90,440) (95,745)
Cash Flow From Financing Activities
Borrowings from Other Banks, Agents etc. 292,654 1,952,015
Dividend Paid (103) (39,189)
------------ ------------
Net Cash Inflow from Financing Activities 292,551 1,912,826
------------ ------------
Increase in Cash and Cash Equivalents for the Year 1,103,739 1,802,442
Cash and Cash Equivalents at the Beginning of the Year 3,609,554 1,807,112
Cash and Cash Equivalents at the End of the Year 4,713,293 3,609,554
------------ ------------
Cash and Cash Equivalents
Cash in Hand and with State Bank of Pakistan / National Bank of Pakistan 1,437,760 1,839,504
Balances with Other Banks 1,785,533 1,590,050
Money at Call and Short Notice 1,490,000 180,000
------------ ------------
4,713,293 3,609,554
========== ==========
Ali RAZA D. HABIB ABBAS D. HABIB ANWAR HAJI KARIM FAIZ N. ABDULALI
Chairman Chief Executive and Director Director
Karachi: February 26, 2001. Managing Director
Notes to the Accounts for the year ended December 31, 2000
1. STATUS AND NATURE OF BUSINESS
The Bank was incorporated in Pakistan on October 15, 1991 as a public limited company and its shares
are listed on all the Stock Exchanges in Pakistan. It is a scheduled bank principally engaged in the
business of commercial banking.
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 the banks from
their customers and immediate resale to them at appropriate portion of mark-up thereon.
3. SIGNIFICANT ACCOUNTING POLICIES
3.1 Accounting Convention
These accounts have been prepared under the historical cost convention and are in conformity
with generally accepted accounting standards of banking institutions in Pakistan.
3.2 Investments
investments are stated at cost, less provisions, if any, for permanent diminution in their value.
Profit or loss on sale of investments are dealt with through the profit and loss account in the year
in which they arise.
The Bank enters into transactions of re-purchase and re-sale of registered Government
securities at contracted rates for specified periods of time with other financial institutions. These
are recorded as follows:
In case of sale under re-purchase obligations, the securities are deleted from the books and
charges arising from the differential in sale and re-purchase values are accrued on prorata basis
and recorded as expense. Upon re-purchase the securities are re-instated.
In case of purchase under re-sale obligations, the securities are booked at the contracted
purchase price and the differential of the contracted purchase and re-sale price is amortized over
the period of their contract and recorded as income.
3.3 Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Depreciation is charged by using
the straight line method during the estimated useful life of the assets. Half year's depreciation
is charged on fixed assets purchased or disposed off during the year. Gain or loss on sale of fixed
assets are treated as revenue items.
Maintenance and normal repairs are charged to income as and when incurred while costs
incurred on renovations are capitalized and amortized over a period of five years.
3.4 Taxation
Provision for taxation is based on taxable income at the current rates of taxation after taking into
account applicable exemptions and rebates, as permissible under the Income Tax
Ordinance, 1979.
The Bank accounts for deferred taxation using the liability method on all major timing differences
except where these are not expected to reverse in the foreseeable future.
3.5 Staff Retirement Benefits
The Bank operates a recognized provident fund scheme which is administered by the Board of
Trustees and contributions thereto are charged to the profit and loss account in accordance with
the terms of the scheme.
3.6 Advances
Advances are stated net of provisions for bad and doubtful debts. Provisions for bad and doubtful
debts are determined by the management keeping in view the requirements of the Prudential
Regulations issued by the State Bank of Pakistan.
3.7 Revenue Recognition
Income is recognized on accrual basis, except for commission on letters of credit and guarantees
which is taken to income account at the time of receipt.
3.8 Foreign Currencies
Assets and liabilities in foreign currencies have been translated into rupees at the rate of
exchange approximating those ruling at the Balance Sheet date except those covered by forward
exchange contracts which are converted at contracted rates. Exchange gains and losses have
been accounted for in the current year's income.
3.9 Operating Lease
Lease rentals payable on assets held under operating lease are charged to profit and loss
account for the year.
2000 1999
(Rupees in '000)
4. CASH   
In Hand
Local currency 334,768 562,484
Foreign currency 242,688 104,016
------------ ------------
577,456 666,500
With State Bank of Pakistan in:
Current account I 517,061 858,922
Deposit account 289,761 259,497
------------ ------------
806,822 1,118,419
With National Bank of Pakistan in:
Current account 53,482 54,585
------------ ------------
1,437,760 1,839,504
========== ==========
5. BALANCES WITH OTHER BANKS
In Pakistan
in Current accounts 49,168 24,940
in Deposit accounts 2,500 2,500
------------ ------------
51,688 27,440
Outside Pakistan
in Current accounts 391,884 25,081
in Deposit accounts 1,341,961 1,537,529
------------ ------------
1,733,845 1,562,610
------------ ------------
1,785,533 1,590,050
========== ==========
6. INVESTMENTS (at cost less provisions)
Investment Securities:
Federal and Provincial Government Securities
Federal Investment Bonds 1,746,184 925,732
Treasury Bills 1,947,038 3,621,131
3,693,222 4,546,863
Fully paid-up ordinary shares
Listed companies 54,742 21,142
Other investments
National Investment Trust (N.I.T) Units -- 35,461
Equity contribution towards Khushhali-Bank - Note 6.1 30,000 --
Equity contribution towards Pakistan Export Finance
Guarantee Agency Limited - Note 6.2 5,700 --
------------ ------------
35,700 35,461
------------ ------------
3,783,664 4,603,466
Less: Provision against investments -- (2,476)
------------ ------------
3,783,664 4,600,990
========== ==========
Market value of Investment in listed companies is Rs. 44.445 million (1999 Rs. 26.553 million) The book
value of Federal and Provincial Government Securities is Rs. 3,693.222 million (1999: Rs. 4,546.863 million).
6.1 The Bank has subscribed / paid Rs. 30 million being its proportionate share towards the equity
of Khushhali-Bank formed as per the directives of Government of Pakistan to provide micro
finance in rural communities with the objective of alleviating poverty.
6.2 The Bank has subscribed / paid Rs. 5.7 million being its proportionate share towards the equity
of Pakistan Export Finance Guarantee Agency Limited, which is a joint venture with Asian
Development Bank and thirteen commercial banks operating in Pakistan.
2000 1999
(Rupees in '000)
7. ADVANCES
Loans, cash credits, overdrafts etc.
In Pakistan 12,740,943 9,559,102
Outside Pakistan -- --
------------ ------------
12,740,943 9,559,102
Bills discounted and purchased
(excluding Government Treasury Bills)
Payable in Pakistan 48,665 57,341
Payable outside Pakistan 1,982,394 1,329,018
------------ ------------
2,031,059 1,386,359
------------ ------------
14,772,002 10,945,461
Provision against advances - Note 7.2 (49,903) (20,162
------------ ------------
14,722,099 10,925,299
========== ==========
Advances include Rs.116.961 million (1999: Rs. 131.028 million) which have been placed on
non-performing status against which adequate provisions and realizable securities are held.
2000 1999
(Rupees in '000)
7.1 Particulars of advances
In local currency 14,722,099 10,925,299
In foreign currencies -- --
------------ ------------
14,722,099 10,925,299
========== ==========
(i) Debts considered good in respect of which
the Bank is fully secured 14,722,099 10,925,299
(ii) Debts considered good for which the Bank holds
no other security than the debtors' personal security -- --
(iii) Debts considered good secured by the personal
liabilities of one or more parties in addition to the
personal security of the debtors -- --
(iv) Debts considered doubtful or bad not provided for -- --
------------ ------------
14,722,099 10,925,299
========== ==========
Balance Maximum total amount
Outstanding at of advances including
Dec. 31, 2000 temporary advances
granted during the year
Rupees in '000
(i) Debts due by directors or executives
of the Bank or any of them either severally
or jointly with any other persons 4,209 2,689
(ii) Debts due by companies or firms
in which the directors of the Bank are
interested as directors, partners or in
the case of private companies, as
members 228,442 302,941
(iii) Debts due by subsidiary companies,
controlled firms, managed modarabas
and other associated undertakings -- --
7.2 Particulars of Specific Provision Against
Non-Performing Advances
2000 1999
(Rupees in '000)
Opening balance 20,162 37,951
Charge for the year 29,741 4,423
Amounts written-off Note 7.3 -- (4,511 )
Reversal -- *(17,701 )
------------ ------------
Closing balance 49,903 20,162
========== ==========
Provision against:
Advances to banks -- --
Advances to others 49,903 20,162
------------ ------------
49,903 20,162
========== ==========
* Relates to restructuring of account.
7.3 Amounts Written-Off During the Year
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 December 31, 2000, stands Nil.
8. OPERATING FIXED ASSETS
Depreciation (Rupees in '000)
Cost Adjustment on Book Rate
At At At Charge  Disposals At Value At of
Jan. 1 Additions Dec.31 Jan.1 for during Dec.31 Dec.31 Depreciation
2000 (Disposals) 2000 2000 the year  the year 2000 2000 %
Land - Leasehold 60,407 -- 60,407 -- -- -- -- 60,407 --
Buildings on Leasehold Land 184,529 30,145 214,674 44,431 19,960 -- 64,391 150,283 10.00
Furniture and Fixtures 30,308 4,102 34,410 12,280 3,243 -- 15,523 18,887 10.00
Office Equipment 50,270 11,479 61,519 29,589 8,488 (230) 37,847 23,672 20.00
(230)
Vehicles 4,059 665 4,435 1,432 822 (185) 2,069 2,366 20.00
(289)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
2000 329,573 46,391 375,445 87,732 32,513 (415)  119,830 255,615
(519)
========== ========== ========== ========== ========== ========== ========== ==========
1999 271,692 58,997 329,573 61,407 27,190 (865)  87,732 241,841
(1,116)
========== ========== ========== ========== ========== ========== ========== ==========
2000 1999
(Rupees in '000)
9. CAPITAL WORK-IN-PROGRESS
Civil works 4,685 3,321
Advances against purchase of premises, equipment etc. 30,229 17,398
Consultants fees and other charges 275 150
------------ ------------
35,189 20,869
========== ==========
10. OTHER ASSETS
Stationery and stamps on' hand 14,065 13,627
Income / mark-up accrued on advances and
investments 482,914 333,272
Other receivables 38,485 26,963
Prepaid exchange risk fee 13,400 17,916
Other advances, deposits, advance rent and
other prepayments 43,515 54,606
Capitalized expenditure* 35,455 25,250
------------ ------------
627,834 471,634
========== ==========
* Capitalized expenditure consists of renovation costs incurred on premises and is amortized over
a period of five years.
2000 1999
(Rupees in '000)
11. DEPOSITS AND OTHER ACCOUNTS
Fixed deposits 7,623,382 8,224,276
Saving deposits 6,805,665 2,951,324
Current accounts 3,156,341 2,676,543
Deposits and other accounts of banks 237,266 260,727
------------ ------------
17,822,654 14,112,870
========== ==========
11.1 Particulars of Deposits and Other Accounts
In local currency 14,138,113 10,336,544
In foreign currency 3,684,541 3,776,326
------------ ------------
17,822,654 14,112,870
========== ==========
12. BORROWINGS FROM OTHER BANKS, AGENTS ETC.
In Pakistan 4,327,974 4,035,320
Outside Pakistan -- --
------------ ------------
4,327,974 4,035,320
========== ==========
12.1 Particulars of Borrowings from
Other Banks, Agents etc.
In local currency 4,327,974 4,035,320
In foreign currency -- --
------------ ------------
4,327,974 4,035,320
========== ==========
12.2 Secured
Loans from State Bank of Pakistan
Export Refinance 4,127,974 4,035,320
Others -- --
------------ ------------
4,127,974 4,035,320
========== ==========
12.3 Unsecured
Call borrowing from National Bank of Pakistan 200,000 --
========== ==========
Note: Loans from State Bank of Pakistan have been obtained under the Export Refinance
Scheme at mark-up rates of 6.00% and 8.00% p.a.
13. OTHER LIABILITIES
Mark-up / Interest on loans / borrowings 83,522 56,297
Profit payable on PLS deposits and other accounts 165,147 99,907
Interest on foreign currency deposits 9,666 11,722
Taxation (provision less payments) 83,116 104,957
Branch adjustment account 4,379 4,476
Accrued expenses 7,138 4,569
Advance payments and security deposits 2,082 1,720
Unclaimed dividends 4,370 4,473
Special exporters account 116,818 5,389
Deficit on revaluation of securities 11,883 --
Others 67,553 112,483
------------ ------------
555,674 405,993
========== ==========
14. SHARE CAPITAL
Authorised Capital:
100,000,000 ordinary shares of Rs. 10 each 1,000,000 1,000,000
========== ==========
Issued, Subscribed and Paid-Up:
30,000,000 ordinary shares of Rs. 10 each
issued for cash 300,000 300,000
30,112,800 ordinary shares of Rs. 10 each
issued as bonus shares 301,128 200,940
------------ ------------ ------------
60,112,800 601,128 500,940
========== ========== ==========
15. STATEMENT OF CHANGES IN EQUITY
Share     Reserve Statutory Special General Reserve  Unappro Total
capital  for issue of reserve reserve reserve fund and  priated
bonus shares other  profit b/f
reserves
(Rupees in '000)
Balance at Jan. 1, 1999 379,500 121,440 287,500 101,500 120,000 509,000 6,351 1,016,291
Profit for the year 1999  -- -- -- -- -- -- 152,728 152,728
Transfer -- 100,188 31,000 25,000 -- 56,000 (156,188) --
Issue of bonus shares 121,440 (121,440) -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at Dec. 31, 1999 500,940 100,188 318,500 126,500 120,000 565,000 2,891 1,169,019
Profit for the year 2000 -- -- -- -- -- -- 153,178 153,178
Transfer -- 120,226 31,000 -- -- 31,000 (151,226) --
Issue of bonus shares 100,188 (100,188) -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at Dec. 31, 2000 601,128 120,226 349,500 126,500 120,000 596,000 4,843 1,322,197
========== ========== ========== ========== ========== ========== ========== ==========
2000 1999
(Rupees in '000)
16. BILLS FOR COLLECTION
Payable in Pakistan 113,989 119,500
Payable outside Pakistan 3,071,134 2,500,286
------------ ------------
3,185,123 2,619,786
========== ==========
17. CONTINGENT LIABILITIES AND COMMITMENTS
Contingencies
Money for which the Bank is
contingently liable:
a) Contingent liability in respect of
guarantees given on behalf of
directors, officers or any of
them (severally or jointly) with
any other person, subsidiaries
and associated undertakings -- --
b) Contingent liability in respect of
guarantees given favouring:
(i) Government 428,515 275,442
(ii) Banking companies and other
financial institutions 22,124 --
(iii) Others 128,987 117,729
------------ ------------
579,626 393,171
c) Liability on bills of exchange rediscounted -- --
Commitments
Commitments in respect of forward exchange
contracts including forward contracts with
State Bank of Pakistan in respect of
foreign currency deposits
Sale 1,543,199 810,526
Purchase 2,272,080 2,173,388
Commitments in respect of operating leases 63,919 51,117
Other commitments in respect of 'Repo' transactions
Repo (Repurchase) 100,000 250,000
Reverse Repo (Resale) 2,646,000 --
18. OTHER OPERATING INCOME
Income from dealing in foreign currencies 204,805 140,689
Miscellaneous income (rent of lockers, recovery of fax,
telephone, telex, courier charges etc.) 24,364 19,809
------------ ------------
229,169 160,498
========== ==========
19. ADMINISTRATIVE EXPENSES
Salaries, allowances etc. 145,407 118,294
Contribution to staff provident fund 5,941 5,508
Non executive directors' fees and allowances 13 7
Brokerage and commission 1,964 1,647
Rent, taxes, insurance, electricity etc. 68,235 48,657
Legal and professional charges 3,678 1,656
Communications 23,114 21,131
Repairs and maintenance 23,780 21,187
Rentals of operating leases 34,006 31,906
Security charges 9,909 10,293
Stationery and printing 12,276 12,019
Advertisement and publicity 5,237 2,396
Donations Note 19.1 3,800 2,695
Auditors' remuneration - Note 19.2 175 150
Depreciation - Note 8 32,513 27,190
Other expenditure (travelling, vehicle running
expenses, automation expenses etc.) 32,450 28,352
------------ ------------
402,498 333,088
========== ==========
19.1 The detail of donations given in excess of Rupees One hundred thousand is given below:
(Rupees in '000)
Donees
AI-Sayyeda Benevolent Trust 900
Habib Medical Trust 900
Habib Education Trust 600
Rahmatbai Habib Widows & Orphans Trust 400
Habib Poor Fund 400
Rahmatbai Habib Food & Clothing Trust 300
None of the directors or their spouse had any interest in the above donees.
2000 1999
(Rupees in '000)
19.2  Auditors' remuneration
Audit fee 150 125
Fee for audit of provident fund etc 15 15
Special certifications and sundry advisory services 10 10
------------ ------------
175 150
========== ==========
20. OTHER INCOME
Profit on sale of fixed assets 954 2,743
========== ==========
21. TAXATION
As an allowable deduction under section 23(1) (ix) of the Income Tax Ordinance, 1979, the Bank
transferred Rs. 126.500 million to Special Reserve upto Dec. 31,1999. No further appropriation to this
account is being made as the above mentioned clause was deleted in the Finance Ordinance 2000.
The Central Board of Revenue has not granted approval for the creation of this Reserve, however the
tax liability in this respect has been paid by the Bank. The Bank has filed a writ petition with the
Honourable High Court of Pakistan.
22. REMUNERATION OF CHIEF EXECUTIVE, DIRECTORS AND EXECUTIVES
(Rupees in'000)
Chief Executive Director* Executives
2000 1999 2000 1999 2000 1999
Fees 
Managerial remuneration 2,062 1,915 1,336 939 11,333 9,828
Provident fund 206 192 102 94 515 801
Rent allowances -- 360 -- 174 1,079 2,247
Utilities 542 192 134 94 1,133 981
Bonus 344 150 225 73 1,761 786
Medical 2 3 49 16 294 206
Others 379 229 236 95 1,928 1,188
------------ ------------ ------------ ------------ ------------ ------------
3,535 3,041 2,082 1,485 18,043 16,037
========== ========== ========== ========== ========== ==========
Number of persons 1 1 2 1 10 9
========== ========== ========== ========== ========== ==========
In addition to the above, the chief executive, directors and executives are provided with company
maintained cars and chauffeurs.
* Denotes full time working Directors.
23. MATURITIES OF ASSETS AND LIABILITIES
(Rupees in'000)
Total Upto one Over one Over one Over five
Dec. 31 month month to year to years
Assets 2000 one year five years
Cash
Balances with other banks 1,437,760 1,437,760 -- -- --
Money at call and short notice 1,785,533 1,785,533 -- -- --
Investments 1,490,000 650,000 840,000 -- --
Advances 3,783,664 1,103,814 2,069,515 574,635 35,700
Operating fixed assets 14,722,099 239,789 13,432,004 794,561 255,745
Capital work-in-progress 255,615 -- 979 30,816 223,820
Other assets 35,189 -- 6,247 28,942 --
627,834 400,553 188,240 35,509 3,532
------------ ------------ ------------ ------------ ------------
24,137,694 5,617,449 16,536,985 1,464,463 518,797
========== ========== ========== ========== ==========
Liabilities
Deposits and other accounts 17,822,654 16,730,199 403,810 688,645 --
Borrowings from other banks,
agents etc. 4,327,974 621,136 3,706,838 -- --
Bills payable 121,078 121,078 -- -- --
Other liabilities 555,674 173,530 368,212 13,932 --
------------ ------------ ------------ ------------ ------------
22,827,380 17,645,943 4,478,860 702,577 --
========== ========== ========== ========== ==========
Net Assets 1,310,314 (12,028,494) 12,058,125 761,886 518,797
========== ========== ========== ==========
Deficit on revaluation 
of securities 11,883
------------
Shareholders' Equity 1,322,197
==========
* Saving deposits have been reported under one month maturity. However, they are not expected
to be payable within one month period.
24. SEGMENT ANALYSIS
24.1 Geographic Segment
(Rupees in'000)
Profit before  Total assets  Net assets  Bills for  Endorsements
taxation employed     employed  collection and other
obligations
Pakistan 403,178 24,137,694 1,310,314 3,185,123 3,936,717
========== ========== ========== ========== ==========
24.2 Segment by Class of Business
Deposits Advances
Rupees Rupees
in '000 % in '000 %
Chemical and Pharmaceuticals 692,274 3.89 218,612 1.48
Agribusiness 787,322 4.42 500,040 3.40
Textile 385,580 2.16 9,305,050 63.20
Cement 67,136 0.38 128,979 0.88
Sugar 665,251 3.73 480,812 3.27
Shoes and leather garments 55,527 0.31 144,214 0.98
Automobile and transportation equipment 38,220 0.22 27,347 0.19
Financial 569,024 3.19 490,618 3.33
Insurance 150,156 0.84 -- --
Transportation 76,531 0.43 551 --
Electronics and electric appliances 75,056 0.42 29,280 0.20
Production and transmission of energy 4,056 0.02 --
Others 14,256,521* 79.99 3,396,596 23.07
------------ ------------ ------------ ------------
17,822,654 100.00 14,722,099 100.00
========== ========== ========== ==========
* Pertains mainly to local and foreign currency deposits of individuals.
24.3 Segment by Sector
Deposits Advances
Rupees % Rupees %
in '000 in '000
Public / Government       248,757 1.40 347,763 2.36
Private 17,573,897 98.60 14,374,336 97.64
------------ ------------ ------------ ------------
17,822,654 100.00 14,722,099 100.00
========== ========== ========== ==========
25. CURRENCY-WISE BREAKDOWN OF ASSETS
AND LIABILITIES
Assets Liabilities
Rupees Rupees
in '000 % in '000 %
Pak Rupees 20,973,796 86.89 20,246,345 83.88
U.S. Dollars 2,913,430 12.07 3,465,419 14.36
Pound Sterling 72,407 0.30 155,361 0.64
Deutsche Mark 21,585 0.09 10,619 0.04
Japanese Yen 3,386 0.01 5,217 0.02
Other European Currencies    148,934 0.62 250,577 1.04
Other Currencies 4,156 0.02 4,156 0.02
------------ ------------ ------------ ------------
24,137,694 100.00 24,137,694 100.00
========== ========== ========== ==========
26. TRANSACTIONS WITH ASSOCIATED UNDERTAKINGS
2000 1999
(Rupees in '000)
i) Advances given during the year 24,781 38,334
ii) Advances repaid during the year 99,280 74,605
iii) Advances (at year end) 228,442 302,941
iv) Deposits (at year end) 293,056 300,475
v) Mark-up / Interest expensed 15,359 15,877
vi) Mark-up / Interest earned 28,126 39,365
vii) Provision for non-performing advances
charged against income during the year -- --
viii) Provision for non-performing advances at year end -- --
ix) Commitments and contingent liabilities for
irrevocable commitments and contingencies 59,842 150,120
x) Insurance 9,923 5,756
xi) Others -- --
27. GENERAL
27.1 Previous year's figures have been rearranged, wherever necessary, to facilitate comparison.
27.2 Figures have been rounded off to the nearest thousand rupees in the financial statements.
ali RAZA D. HABIB ABBAS D. HABIB ANWAR HAJI KARIM FAIZ N. ABDULALI
Chairman Chief Executive and Director Director
Managing Director
Notice of Annual General Meeting
Notice is hereby given that the Tenth Annual General Meeting of Bank AL Habib Limited will be held at the
Registered Office of the Bank located at 126-C, Old Bahawalpur Road, Multan, on Thursday, March 22, 2001
at 12:30 p.m., to transact the following business:
1. To receive and adopt the audited accounts of the Bank for the year ended December 31,2000 together
with the Directors' and Auditors' Reports thereon.
2. To approve the issue of bonus shares as recommended by the Directors and in this regard to pass the
following Ordinary Resolutions:
"RESOLVED that a sum of Rs.120,225,600 (Rupees One hundred twenty million two hundred twenty
five thousand and six hundred only) out of the unappropriated profit be capitalized and distributed by
issuing 12,022,560 fully paid ordinary shares of Rs. 10 each as bonus shares in the proportion of twenty
shares for every hundred shares held, to those members whose names appear in the register of
members as at the close of business on March 20, 2001 and that the shares so distributed shall be
treated for all purposes as an increase in the paid-up capital of the Bank.
FURTHER RESOLVED that the bonus shares so distributed shall rank pari passu in all respects with
the existing shares of the Bank.
FURTHER RESOLVED that in the event of any member holding shares which are not an exact multiple
of five, the Directors be and are hereby authorised to consolidate all such fractions of bonus shares
and sell in the Stock Market and pay the proceeds of sale when realized to a charitable trust.
FURTHER RESOLVED that the Directors be and are hereby authorised and empowered to give effect
to this resolution and to do or cause to be done all acts, deeds and things that may be necessary or
required for the issue, allotment and distribution of 12,022,560 shares."
3. To appoint Auditors for the year 2001 and to fix their remuneration. Messrs Hyder Bhimji & Company,
Chartered Accountants, being eligible offer themselves for reappointment.
4. To elect Directors of the Bank in accordance with Section 178 (1) of the Companies Ordinance, 1984.
The number of Directors to be elected has been fixed at nine by the Board of Directors in addition to
one Director nominated by NIT.
The following, being eligible, have offered themselves for re-election:
Mr. All Raza D. Habib, Mr. Abbas D. Habib, Mr. Faiz N. Abdulali, Mr. Qumail R. Habib,
Mr. Anwar Haji Karim, Mr. Murtaza H. Habib, Mr. Syed Mazhar Abbas, Mr. Hasnain A. Habib,
Mr. Salman H. Habib
5. To consider any other business of the Bank with the permission of the Chair.
SPECIAL BUSINESS
6. To approve the remuneration payable to the Chief Executive and Executive Directors of the Bank.
By order of the Board
MAHMOOD S. ALLARAKHIA
Karachi: February 26, 2001. Company Secretary
Notes:
1. A member entitled to attend and vote at this meeting is entitled to appoint a proxy to attend and vote
on his/her behalf. A proxy must be a member of the Bank. Proxy forms in order to be effective must
be received at the Registered Office of the Bank located at 126-C, Old Bahawalpur Road, Multan, duly
stamped and signed not less than 48 hours before the meeting.
2. CDC shareholders desiring to attend the meeting are requested to bring their original National Identity
Card, Account and Participant's ID number and their account number at the time of attending the
Annual General Meeting in order to facilitate identification of the respective shareholders.
3. The share transfer books of the Bank will remain closed from Wednesday, March 21, 2001 to
Wednesday, March 28, 2001 both days inclusive. The Shares Department of the Bank is located at
217, Cotton Exchange Building, I.I. Chundrigar Road, Karachi.
4. Members are requested to promptly communicate to the Bank any change in their address.
5. For item No. 6 a statement under section 160 of the Companies Ordinance, 1984 is being sent to all
members.
Statement Under Section 160
of the Companies Ordinance, 1984
February 26, 2001
To all Members of the Bank
1. Subsequent to the re-appointment of the Chief Executive by the Board of Directors in their meeting
held on February 26, 2001, it is intended to propose the following resolution to be passed as an
Ordinary Resolution:
"RESOLVED that the remuneration of the Chief Executive shall not exceed Rs. 300,000 per month
exclusive of perquisites, benefits and other allowances to which he is entitled under the terms of his
employment, subject to an increment not exceeding 15% per annum."
2. It is further intended to propose the following resolutions to be passed as Ordinary Resolutions:
"RESOLVED that the remuneration of Mr. Qumail R. Habib, Executive Director shall not exceed
Rs. 175,000 per month exclusive of perquisites, benefits and other allowances to which he is entitled
under the terms of his employment, subject to an increment not exceeding 15% per annum.
FURTHER RESOLVED that the remuneration of Mr. Syed Mazhar Abbas, Executive Director shall not
exceed Rs. 150,000 per month exclusive of perquisites benefits and allowances to which he is
entitled under the terms of his employment, subject to an increment not exceeding 15% per annum."
MAHMOOD S. ALLARAKHIA
Company Secretary
Pattern of Shareholding as at December 31, 2000
Number of
Shareholders Size of Shareholding Total Shares
held
484 From 1 To 100 30,846
1,105 From 101 To 500 283,620
2,807 From 501 To 1,000 2,755,544
523 From 1,001 To 5,000 1,351,862
125 From 5,001 To 10,000 856,240
71 From 10,001 To 15,000 812,637
22 From 15,001 To 20,000 380,371
68 From 20,001 To 25,000 1,408,517
25 From 25,001 To 30,000 662,554
11 From 30,001 To 35,000 388,466
5 From 35,001 To 40,000 185,680
24 From 40,001 To 50,000 1,008,761
16 From 50,001 To 60,000 847,059
29 From 60,001 To 75,000 1,777,010
15 From 75,001 To 100,000 1,256,145
14 From 100,001 To 150,000 1,657,213
4 From 150,001 To 175,000 629,940
9 From 175,001 To 250,000 1,939,461
10 From 250,001 To 300,000 2,543,400
1 From 300,001 To 350,000 303,296
12 From 350,001 To 550,000 5,772,817
4 From 550,001 To 700,000 2,354,077
7 From 700,001 To 1,000,000 5,610,710
9 From 1,000,001 To 2,700,000 14,811,910
1 From 2,700,001 To 10,485,000 10,484,664
----------- ----------- ----------- ----------- ----------- -----------
5,401 60,112,800
========== ========== ========== ========== ========== ==========
Categories of Number of Number of
Shareholders Shareholders Shares held Percentage
Individuals 5,298 34,893,916 58.04
Investment Companies 4 4,402 0.01
Insurance Companies 5 3,941,913 6.56
Joint Stock Companies 69 7,969,693 13.26
Financial Institutions 14 10,874,158 18.09
Modaraba Companies 4 35,561 0.06
Foreign Companies 4 2,008,640 3.34
Others 3 384,517 0.64
----------- ----------- -----------
TOTAL 5,401 60,112,800 100.00
========== ========== ==========
Branch Network
Karachi Lahore Rahim Yar Khan
MAIN BRANCH MAIN BRANCH Shahi Road.
Mackinnons Building, I.I. Chundrigar Road. 87, Shahrah-e-Quaid-e-Azam. Phones: (0731) 84556-84557 & 84508-9
Phones: (92-21) 2412986 & 111-786-110 Phones: (92-42) 6305042-45 & 111-786-110 Fax: (0731) 84503
Fax: (92-21) 2425423 & 2412028 Fax: (92-42) 6368864 & 6305046
Telex: 21286 ALHAB PK Telex: 44610 BAHLR PK Islamabad
MAIN BRANCH
SHAHRAH-E-FAISAL BRANCH GARDEN TOWN BRANCH 90-91, Razia Sharif Plaza,
20-A-1, Block 6, P.E.C.H.S.. Shahrah-e-Faisal. Awami Complex, 1-4 Usman Block, Jinnah Avenue, Blue Area.
Phones: (92-21) 4530140-42 & 4544301 Front Block V, New Garden Town. Phones: (92-51) 2270883-4 & 111-786-110
Fax: (92-21) 4530143 Phones: (92-42) 5869366-69 Fax: (92-51) 2270885
Fax: (92-42) 5869370 Telex: 54726 BAH ID PK
GULSHAN-E-IQBAL BRANCH
B-39, AI-Shams Centre, Block 13-A, GULBERG BRANCH F-10 MARKAZ BRANCH
University Road, Gulshan-e-lqbal. 3-E, Block E, Ground Floor, F-10 Markaz, Islamabad.
Phones: (92-21) 4989162-63 Main Market, Gulberg II. Phone: (92-51) 2297758
Fax: (92-21) 4989164 Phones: (92-42) 5762502 & 5754586 Fax: (92-51) 2296895
Fax: (92-42) 5762501
ZAMZAMA BRANCH Rawalpindi
16-C, Commercial Lane 3, Multan 40/3, Jhanzeb Centre, Bank Road,
Phase V, Zamzama Boulevard, MAIN BRANCH Rawalpindi Cantt.
Defence Housing Authority. 126-C, Old Bahawalpur Road. Phones: (92-51) 5519936-38
Phones: (92-21) 5863986, 5861804 Phones: (92-61) 544539 & 111-786-110 Fax: (92-5t) 5519939
Fax: (92-21) 5863914 Fax: (92-61) 582471
Telex: 42336 ALHML PK Peshawar
S.I.T.E., BRANCH 105-106, F.C. Trust Building,
B/76, S.S. Chambers, S.I.T.E., HUSSAIN AGAHI ROAD BRANCH Sonehri Masjid Road.
Phones: (92-21) 2571710 -11 & 2571521 Lohari Gate Shopping Centre, Phones: (92-91) 279814 & 111-786-110
Fax: (92-21) 2571522 Hussain Agahi Road. Fax: (92-91) 279861
Phones: (92-61) 513893 & 513577
BAHADURABAD BRANCH Fax: (92-61) 513793 Mirpur (Azad Kashmir)
Central Commercial Area, B.C.H.S., 82-A/B, Allarea Iqbal Road, Sector B-4.
Bahadurabad. GHALLA MANDI BRANCH Phone: (92-58610) 45064
Phones: (92-21) 4915803-5 135/C, Ghalla Mandi, Vehari Road. Fax: (92-58610) 44766
Fax: (92-21) 4915802 Phones: (92-61) 232627-28
Fax: (92-61) 232629 Gujrat
M.A. JINNAH ROAD BRANCH Ground Floor, Soufi Hotel, G.T. Road.
Godrej Kandawala Building, Faisalabad Phones: (92-4331) 525623 & 111-786-110
M.A. Jinnah Road. Bank Square, Outside Kutchery Bazar. Fax: (92-4331) 525628
Phones: (92-21) 7228494, 7228458 Phones: (92-41) 637301-3 & 111-786-110
Fax: (92-21) 7228450 Fax: (92-41) 614266 Dinga (Distt. Gujrat)
Telex: 43528 ALHAB PK Opp. Civil Hospital.
CLOTH MARKET BRANCH Phone: (92-43317) 401737
Ground Floor, Lotus Manzil, Sialkot Fax: (92-43317) 401737
BR-2, New Neham Road, Paris Road.
Cloth Market. Phones: (92-432) 592747 & 111-786-110 Quetta
Phone: (92-21) 2401301-4 Fax: (92-432)592747 Mannan Chowk, M.A. Jinnah Road.
Fax: (92-21) 2401300 Telex: 46426 ALHAB PK Phones; (92-81) 844125 & 111-786-110
Fax: (92-81) 842335
KARACHI STOCK EXCHANGE BRANCH Sheikhupura
Room No. 4-6, B-IX-64-95/A, Nawabshah
Stock Exchange Building, Sarghoda Road. Masjid Road.
Stock Exchange Road. Near Sharif Plaza. Phones: (92-241) 62738 & 62854
Phones: {92-21) 2401516-19 Phones: (92-4931) 612906 & 111-786-110 Fax: (92-241) 62737
Fax: (92-21) 2401520 Fax: (92-4931) 612877
Hyderabad
JODIA BAZAR BRANCH Sahiwal Qasre Fatima, 90/1-2 Saddar Bazar,
Rambharti Street, Jodia Bazar. 271, Block-2, Cantonment Area.
Phones: 2446451-53 High Street (Jinnah Road). Phones: (92-221) 785541 & 785809
Fax: (92-21) 2446454 Phones: (92-441) 66021 & 67021 Fax: (92-221) 781955
Fax: (92-441) 64031
Sukkur
B-2555, Shaheed Gunj.
Phones: (92-71) 22287 & 23713
Fax: (92-71) 25749
Registered Office and Head Office
126-c, Old Bahawalpur Road, Multan. Phones: (92-61) 580314-16, 544539 & 111-786-110 Fax: (92-61) 582471 Telex: 42336 ALHML PK
Principal Office
Mackinnons Building, I. I. Chundrigar Road, Karachi. Phones: (92-21) 2412986 & 111-786-110 Fax: (92-21) 2419752 Telex: 21285 ALHAB PK
SWIFT CODE : BAHLPKKA website: www.bankalhabib.com
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