23

YIELD/INTEREST RATE RISK

(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)

Current Quarter

Effective

Total

Exposed to Yield/ Interest risk

Not exposed

Yield/

Upto three

Over 3 months

Over one year

Over five

to Yield/

Interest

months

to one year

to five years

years

Interest

rate

Rupees in '000

Risk

On-balance sheet financial instruments

Assets

Cash and balances with treasury banks

Balances with other banks

Lendings to financial institutions

Investments

Advances

Other assets

Liabilities

Bills payable

Borrowings from financial institutions

Deposits and other accounts

Sub-ordinated loans

Liabilities against assets subject to finance lease

Other liabilities

On-balance sheet gap

Off-balance sheet financial instruments

Forward Lendings

(including call lending, repurchase agreement lending,

commitments to extend credit, etc.)

Forward borrowings

(including call borrowing, repurchase agreement

borrowing, etc.)

Off-balance sheet gap

Total Yield/Interest Risk Sensitivity Gap

Cumulative Yield/Interest Risk Sensitivity Gap

Yield Risk is the risk of decline in earnings due to adverse movement of the yield curve.

Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in the market interest rates.

24

CURRENCY RISK

(Current Quarter)

Assets

Liabilities

Off-balance

Net foreign

sheet items

currency exposure

Rupees in '000

Pakistan rupee

United States dollar

Great Britain pound

Deutsche mark

Japanese yen

Euro

Other currencies (to be specified, if material)

Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.

25

DETAILS OF CONNECTED LENDING

Balance at the end of Current Quarter

Maximum** total amount of advances including temporary advances granted during the quarter

Performing

Non Performing*

Total

Advances to directors, executives or officers*** of the bank or any of them either severally or jointly with any other persons

Advances to companies or firms in which the directors of the bank are interested as directors, partners or in the case of private companies as members

Advances to subsidiary companies, controlled firms, managed modarabas and other related parties

*  Non-Performing advances are those where principal or markup is overdue by 90 days or more.

**  The maximum amount to be calculated by reference to month-end balances.

*** The advances provided to executives/ officers as per their terms of employment will not be reported here.