Standard
Chartered
He/9 for good
Driving investment,trade and the aeation ofwealth
across Asia, Africa and 1ha Middle East
Standard Chartered Bank (Pakistan) Ltd.
Points of interest
•
Standard Chartered is proud to be operating in Pakistan as the largest and oldest international bank since 1863,
•
2013 marks Standard Chartered's 15oth year of presence in the country.
•
The Bank's franchise in Pakistan has the second largest distribution network in the Standard Chartered Group.
•
The largest international Bank in Pakistan with 116 branches in 22 cities and a workforce of over 4500 employees.
•
Standard Chartered Pakistan is the first international bank to get an Islamic Banking license and to open the first Islamic
Banking branch in Pakistan.
Strong recognition by stakeholders
The Asset Triple A Awards for 2013
Best Bank in Pakistan (for the third consecutive year)
Best Debt House in Pakistan
Best Structured Trade Finance Provider in Pakistan
The Banker (affiliate of Financial limes) Award for 2013 Islamic Bank of the Year
Global Finance Awards 2013
Best Consumer Internet Bank in 11 markets, Pakistan won for the third year in a row.
CFA Pakistan Excellence Awards 2013
Best Corporate Finance House of the Year 2012- Fixed Income
Finance Asia Country Awards 2012
Best Foreign Commercial Bank in Pakistan (for the second consecutive year)
Global Finance Awards 2012
Best Foreign Exchange Provider in Pakistan (for the third consecutive year)
What we stand for
Our Ambition
The world's best international bank
Our Strategy
We bank the people and companies driving
investment, trade and the creation of wealth
across Asia, Africa and the Middle East
Our Bn~nd Promlee
Here for good
Relationships
Build tnJsted relationship
with the people, companies
and lnSIItutlons shaping
our markets' future
Investment
Play a leading role in
faciliting Investment and
deepening f11ancial
markets
Trade
Become the undisputed
leader in commercial
payments and financing
for and in Asia, Africa and
the Middle East
I
Responsive
We deliver relevant,
timely solutions for
clients and customers
International
We value diversity
and colaborale
across the network
I
Colleagues
A great place to work,
enabling individuals to
grow and teams to win
Relevant Scala
Establish sumcienl scale,
Creative
We innovate and
adapt, continuously
Improving the way
we work
Trustworthy
We are reliable,
open and honest
balance sheet and
franchise strength to be
relevant and influential
In our key markets
-
~
Courageous
We take measured
risks and stand up
tor what is right
Wealth
Be recognised as a
leader in growing
and protecting OIW
clients' wealth
~
Society
Aforce for good, promoting
sustainable economic
and social development
Investors
A distinctive investment.
delivering consistently
superior performance
via dl~llnd growth
Regulators
A responsible partner
with exemplary governance
and ethics
Standard Chartered Bank {Pakistan) Umlted- Board of Directors
Left to right: Najam I Chaudhri, Ray Duggins, Mohsin A Nathani {Chief Executive),
Chrlstos Papadopoulos (Chairman), Spenta Kandawalla, Parvez Ghlas
•As of 31st December 2013
Executive Committee members, Standard Chartered Bank (Pakistan) Limited
with Sir John Peace, Chairman Standard Chartered PLC.
*As of 31st December2013
01
Company Information
Board of Directors
Registered Office
Mr. Christos Papadopoulos Chairman
Mr. Khalid Elgibaly
Chief Executive Officer
Mr. Andrew Bainbridge
Mr. Raheel Ahmed
Mr. Najam I. Chaudhri
Mr. Parvez Ghias
Mrs. Spenta Kandawalla
Standard Chartered Bank (Pakistan) Limited
P.O. Box No. 5556, I.I. Chundrigar Road
Karachi-74000, Pakistan
Tel: (021) 32450000
Fax: (021) 32414914
Company Secretary
Standard Chartered Bank (Pakistan) Limited
P.O. Box No. 5556, I.I. Chundrigar Road
Karachi-74000, Pakistan
Tel: (021) 32450000
Fax: (021) 32414914
Mr. Asif Iqbal Alam
Audit Committee
Mr. Najam I. Chaudhri
Mr. Parvez Ghias
Mr. Andrew Bainbridge
Chairman
Member
Member
Human Resource & Remuneration
Committee
Mr. Christos Papadopoulos Chairman
Mr. Khalid Elgibaly
Member
Mr. Parvez Ghias
Member
Auditors
M/s KPMG Taseer Hadi & Co
Chartered Accountants
Legal Advisors
Haidermota & Co
Barristers at Law & Corporate Counselors
Main Office
Website
www.sc.com/pk
Registrar and Share Transfer Office
M/s Central Depository Company of Pakistan Limited
(Share Registrar Department)
CDC House, 99-B, Block-B
SMCHS, Main Shahra-e-Faisal
Karachi - 74400
Toll Free:0800 - CDCPL (23275)
Fax: (021) 34326053
Email: [email protected]
02
Standard Chartered Annual Report 2013
Table of Contents
Page
Notice of Annual General Meeting
03
Directors’ Report
05
Management’s Statements on Internal Controls and Risk Management Framework
08
Report of Shariah Advisor
12
Auditors’ Review Report on Statement of Compliance with the Code of Corporate Governance
14
Statement of Compliance with the Code of Corporate Governance
15
Auditors’ Report to the Members
19
Un-Consolidated Financial Statements
20
Auditors’ Report to the Members on Consolidated Financial Statements
95
Consolidated Financial Statements
96
Pattern of Shareholding
Form of Proxy
168
03
STANDARD CHARTERED BANK (PAKISTAN) LIMITED
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the Eighth Annual General Meeting of the shareholders of Standard Chartered Bank (Pakistan)
Limited ("Bank") will be held on Friday, March 28, 2014 at 4:00 PM at the ICAP House, Institute of Chartered Accountants of
Pakistan, Block 8, Clifton, Karachi, to transact the following business:
A.
ORDINARY BUSINESS
1. To receive, consider and adopt the Audited Accounts (consolidated and un-consolidated) of the Bank and its subsidiaries
for the year ended December 31, 2013 along with the Directors' and Auditors' Reports thereon.
2. To consider the appointment of external auditors namely M/s KPMG Taseer Hadi & Co., Chartered Accountants, for
the year 2014 and to authorize the Chief Executive Officer and Chief Financial Officer to fix their remuneration. M/s
KPMG Taseer Hadi & Co., Chartered Accountants, being eligible, have offered themselves for re-appointment.
3. To consider and approve final cash dividend @14% (i.e. Rs. 1.40 per share) as recommend by the Board of Directors
in addition to interim dividend of 10% already paid for the year 2013.
B.
SPECIAL BUSINESS
4. To approve the remuneration paid to the Independent Non Executive Directors of the Bank for the year ended December
31, 2013 in accordance with the Articles of Association of the Bank and in that connection to pass the following
resolution, as ordinary resolution, with or without modification, addition or deletion:
"RESOLVED THAT the decision of the Board of Directors of Standard Chartered Bank (Pakistan) Limited to pay a
fee of Rs. 3,630,000 during the year ended December 31, 2013 to the independent non-executive members of the
Board, in terms of their discretion under the Articles of Association of the Bank, be and is hereby confirmed and
approved by the shareholders."
A statement of material facts under section 160 (1) (b) of the Companies Ordinance, 1984 relating to the aforesaid
special business to be transacted in the said Annual General Meeting is appended below.
C.
OTHER BUSINESS
5. To transact any other business as may be placed before the meeting with the permission of the Chair.
By Order of the Board
Asif Iqbal Alam
Company Secretary
Karachi: March 5, 2014
04
Standard Chartered Annual Report 2013
NOTICE OF ANNUAL GENERAL MEETING
Notes:
1. The Share Transfer Books of the Bank will remain closed from March 21, 2014 to March 28, 2014 (both days inclusive).
Transfer received at the Share Registrar by the close of business on March 20, 2014 will be treated in time.
2. Only those persons whose names appear in the Register of Members of the Bank as at March 20, 2014 are entitled
to attend and participate in and vote at the Annual General Meeting.
3. A member entitled to attend and vote at the above meeting is entitled to appoint another member as his/ her proxy
to attend and vote instead of him/ her. Proxies, in order to be valid, must be received by the Bank at its registered
office marked for the attention of the office of the Company Secretary, not less than 48 hours before the time for
holding the meeting and must be duly stamped, signed and witnessed. A member shall not be entitled to appoint more
than one proxy.
4. Members are requested to notify change in their address, if any, to the Bank's Share Registrars, M/s. Central Depository
Company of Pakistan Limited (Share Registrar Department), CDC House, 99-B, Block B, SMCHS, Main Shahra-eFaisal, Karachi - 74400. Toll Free: 0800-CDCPL (23275), Fax: (021) 34326053, Email: [email protected].
5. A. For Attending the Meeting:
i) In case of individuals, the account holder or sub-account holder and/or the person whose securities are in group
account and their registration details are uploaded as per the Regulations, shall authenticate his identity by showing
his original Computerized National Identity Card (CNIC) or original passport at the time of attending the Meeting.
ii) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature of the
nominee shall be produced at the time of the Meeting.
B. For Appointing Proxies:
i) In case of individuals, the account holder or sub-account holder and / or the person whose securities are in group
account and their registration details are uploaded as per the Regulations, shall submit the proxy form as per the
above requirement.
ii) The proxy form shall be witnessed by two persons whose names, addresses and CNIC numbers shall be mentioned
on the form.
iii) Attested copies of CNIC or the passport of the beneficial owners and the proxy shall be furnished with the proxy form.
iv) The proxy shall produce his original CNIC or original passport at the time of the Meeting.
v) In case of corporate entity, the Board of Directors' resolution / power of attorney with specimen signature shall be
submitted along with proxy form to the Bank.
6.
Members may inspect the minutes of the Annual General Meeting held on March 28, 2013, in terms of Section 173 of
the Companies Ordinance, 1984, at the Banks registered address.
Statement under section 160(1) (b)
The meeting fee payable to the independent non-executive members of the Board was approved by the Board of Directors
in terms of Article 60 of the Articles of Association of the Bank. This meeting fee requires approval of the shareholders
in Annual General Meeting in terms of paragraph C-2 of Regulation G-1 of prudential regulations for Corporate / Commercial
Banking issued by the State Bank of Pakistan. The independent non-executive members of the Board are interested in
the payment of fees and remaining members of the Board have no interest in the matter.
Shareholders awareness on CNIC requirement/ e-Dividend/ Bank Mandate:
In compliance with Securities and Exchange Commission of Pakistan's directive S.R.O. 831 (I)/2012 dated July 5, 2012,
members are requested to provide a copy of their valid CNIC, if they have not already done so, to the Bank's Share
Registrar at their above referred office address.
Furthermore, the Bank encourages its shareholders to provide dividend mandates of their respective Banks. The benefits
associated with this are instant credit of dividends, no chances of dividend warrants getting lost in the post, undelivered
or delivered to the wrong address etc. For more information, the members may contact our Share Registrars.
05
Directors’ Report
On behalf of the Board of Directors, I am pleased to present the Directors' Report of Standard Chartered Bank (Pakistan) Limited (SCBPL) along
with the audited financial statements and auditors' report thereon for the year ended 31st December 2013.
Economy
The year 2013 ended on a positive note for the economy, as headline inflation declined from peak levels and the IMF Board approved the
release of the USD 550mn second tranche of the 3 year Extended Fund Facility (EFF) program. Investor confidence is rising on improvement
in the energy supplies and higher private sector credit growth. KSE 100 index has rallied 50% in 2013, and has crossed 26,000 points for the
first time in history. Foreign Portfolio Investment (FPI) increased to nearly USD 403mn in 2013, compared to USD 125mn in 2012.
Growth prospects also look stronger led by higher manufacturing sector output, which posted a strong 5.3% y/y growth in H2 2013, led by
stronger growth in textile & leather exports. Improved energy supplies have led to higher output in petroleum, fertilizer and food & beverages
sector. Private sector credit growth has also picked up, rising PKR 264bn during H2 2013, after declining by PKR 20bn in FY13. Credit growth
will accelerate in 2014 as government reins in large fiscal deficit under the IMF stabilization program.
There was some respite from high inflation in December 2013 as lower food prices helped to drag CPI Inflation lower to 9.2%, from 10.9% in
November. Lower inflationary pressures have given space for SBP to keep rates on hold at 10%, taking a pause after hiking rates 100bps in
the last two meetings in 2013. However risks remain due the widening Balance of Payment deficit and declining FX reserves. SBP official FX
reserves have declined to USD 3.6bn by end December 2013 - the lowest levels in the last 13 years. Rupee (PKR) weakened 8% in 2013 to
105.5 by end December 2013. Rising oil import bill and declining foreign investment inflows pose challenges to the growth outlook and Balance
of Payments.
Banks are well capitalized with CAR of 15.5% and remain profitable with ROE of 12.3%. NPLs of the banking sector have declined to 14.3%
by September 2013, down from 14.5% end of 2012. Higher private credit growth and declining NPLs are positive for banking sector outlook
for 2014.
Operating Results and Business Overview
Balance Sheet
Paid-up capital
Total equity
Deposits
Advances - gross
Advances - net
Investments - net
December 31, 2013
(PKR millions)
December 31, 2012
(PKR millions)
38,716
55,729
296,557
157,574
135,495
146,687
38,716
54,292
266,670
159,646
135,184
131,977
24,214
8,730
271
15,213
(931)
16,144
10,528
26,796
13,856
235
12,705
3,597
9,108
5,911
Profit and Loss
Revenue
Administrative expenses
Other non mark-up expenses
Operating profit (before provisions and tax)
(Reversals) / Provisions (net of recoveries)
Profit before tax
Profit after tax
The bank has delivered a strong financial performance with a profit before tax of PKR 16.1 billion compared to PKR 9.1 billion last year, an
increase of over 77%. Continued strict focus on recoveries and conservative credit policies led to the reversal of provisioning this year. Moreover
administrative expenses (excluding a reversal in executive and general administrative expenses) increased by only 1% which is well below the
ongoing inflation in the country, due to strong cost discipline. The interest rates reduction of last couple of years however impacted the revenue
of the bank resulting in it being lower by 10% to PKR 24.2 billion.
The deposit momentum continued with a growth of almost 11% since the start of this year. The continuous increase in low cost deposits has
significantly supported the bank's performance with current and savings account now comprising over 90% of the deposits base. This has
resulted in the bank achieving one of the lowest average cost in the industry. Surplus liquidity continues to be deployed in Government Securities
and interbank market resulting in a highly liquid and strong balance sheet. The consumer business continued to build SME and retail assets
while wholesale business focused on prudent credit expansion.
Considering our long history of presence in Pakistan, we believe in sustained growth by continue focusing on our clients and customers and a
prudent approach to building the balance sheet.
Outlook
Despite the challenging external environment we believe opportunities exist and intend to follow a prudent growth strategy at the back of the
balance sheet strength, effective capital and risk management practices and unique global capabilities. In line with the strategic priorities, the
bank will continue to focus on deepening client relationships, utilising cross selling opportunities and further improve customer service and
engagement.
Dividend
Final cash dividend of 14% (Rs. 1.4 per share) has been recommended by the Board of Directors for approval at the Eighth Annual General
Meeting of the Bank's shareholders. This is in addition to 10% (Re. 1/- per share) interim cash dividend announced during the year.
External Annual Audit
The financial statements of SCBPL have been audited without any qualification by the auditors of the Bank, namely KPMG Taseer Hadi & Co.,
Chartered Accountants.
Credit Rating
Pakistan Credit Rating Agency (PACRA) maintained the Bank's long-term and short-term ratings of "AAA" (Triple A) and "A1+" (A One Plus)
respectively in 2013. The Bank's outstanding subordinated TFC has also been assigned "AAA" rating. These ratings denote the lowest expectation
of credit risk emanating from an exceptionally strong capacity for timely payment of financial commitments.
06
Standard Chartered Annual Report 2013
Directors’ Report
Sustainability
As the largest International Bank in the country, with 116 branches in 29 cities of Pakistan, Standard Chartered is now truly a part of the social
fabric of this country. Through our sustainability strategy we seek to strengthen relationships between our business, community, government
and customers.
In Pakistan, the Bank's community efforts are focused on education and health. Through our education programme, the Bank has extended
more than 3,500 scholarships to deserving students and supports institutions of both vocational and higher learning. Through our health
programme "Seeing is Believing", we are contributing to the tackling of avoidable blindness, with more than 566,600 cataract operations funded
to date. Under our support to the "Pakistan Urban Paediatric Eye Care Programme", we have screened over 1 million children since 2011. In
recognition of our contribution for the cause of tackling avoidable blindness, the Government of Pakistan has made Standard Chartered its
official and only corporate partner with presence on both National and Sindh eye councils of the country.
The Bank extends support to a Hemodialysis facility, and also runs a programme called "Living with HIV" to create awareness about HIV and
AIDS. To encourage employees to participate in these initiatives and engage with the communities, Standard Chartered provides three days
paid volunteering leave to each member of staff. In 2013, SCBPL employees logged 4,827 volunteering days as opposed to 4,555 days in 2012.
Performance of the Group
In compliance with section 236(5) of the Companies Ordinance, 1984, attached with this report are the consolidated financial statements of
SCBPL and its subsidiaries (the Group) namely - Standard Chartered Leasing Limited, Standard Chartered Services of Pakistan (Private) Limited
and Standard Chartered Modarba, for the year ended December 31, 2013.
Operating Results
December 31, 2013
(PKR millions)
December 31, 2012
(PKR millions)
38,716
56,952
296,377
168,427
146,239
146,380
38,716
55,424
266,599
169,490
144,918
131,741
24,687
8,966
278
15,443
(925)
16,368
10,699
27,188
14,046
242
12,900
3,578
9,322
6,046
Balance Sheet
Paid-up capital
Total equity
Deposits
Advances - gross
Advances - net
Investments - net
Profit and Loss
Revenue
Administrative expenses
Non mark-up expenses
Operating profit (before provisions and tax)
(Reversals) / Provisions (net of recoveries)
Profit before tax
Profit after tax
Corporate Governance
As required by the Code of Corporate Governance (the Code), a prescribed statement by the Board, along with Auditors' Review Report thereon,
forms part of this Annual Report.
The directors are pleased to give the following statement as required by clause (xvi) of the Code:
•
•
•
•
•
•
•
•
•
•
•
•
The financial statements present fairly the Bank's state of affairs, results of its operations, cash flows and changes in equity.
Proper books of accounts of the Bank have been maintained.
Appropriate accounting policies have been consistently applied in the preparation of financial statements and accounting estimates
are based on reasonable and prudent judgment.
The International Financial Reporting Standards and International Accounting Standards as applicable in Pakistan have been followed
in the preparation of financial statements.
The system of internal control is sound in design and has been effectively implemented and monitored.
There is no doubt upon the Bank's ability to continue as a going concern.
There has been no material departure from the best practices of corporate governance, as detailed in the listing regulations.
Summarized key operating and financial data is tabulated in this Annual Report.
Details of Board and its Committees meetings held and attended by the directors/ members form part of this report.
The Directors, CEO, CFO and Company Secretary have confirmed that neither they nor their spouses are engaged in the business
of stock brokerage.
Statement of Compliance with Review Report and the Auditors' review report thereon form part of this Annual Report.
All statutory liabilities, if any, have been adequately disclosed in the financial statements.
Statements on Internal Controls and Risk Management Framework
The management of SCBPL is responsible for establishing and maintaining a system of adequate internal controls and procedures. Management's
statements on Internal Controls and Risk Management Framework form part of this Annual Report.
Directors' Meetings
Five (05) meetings of the Board of Directors, six (06) meetings of Board Audit Committee and two (02) meetings of Board Human Resource
(HR) and Remuneration Committee were held during 2013. Attendance by each director/member was as follows:
07
Directors’ Report
Board of Directors Meetings
Sr. No.
Name of Director
Board Audit Committee Meetings
Board HR & Remuneration Meetings
Held during
the tenor in
the year
Held during
the tenor in
the year
Attended1
Held during
the tenor in
the year
5
5
5
5
1
3
5
3
2
5
5
5
5
1
3
4
3
2
6
3
3
4
1
Attended1
1
2
3
4
5
6
7
8
9
Christos Papadopoulos3
Mohsin Ali Nathani3
Najam I. Chaudhri2
Parvez Ghias2&3
Shahid Zaki2
Spenta Kandawalla
Raheel Ahmed
Ray Duggins2
Andrew Bainbridge2
6
3
3
4
1
1
2
3
Leave of absence was granted to the Directors/Members who could not attend some of the meetings
Member of Board Audit Committee
Member of Board HR & Remuneration Committee
Attended1
2
2
2
-
2
2
2
-
Statement of investments of Provident, Gratuity and Pension Funds
Value of investments including accrued income of provident and gratuity funds as at December 31, 2013 on the basis of un-audited
accounts is:
PKR '000
Provident Fund
Management Staff Gratuity Fund
Non- Management Staff Gratuity Fund
Management Staff Pension Fund
Non- Management Staff Pension Fund
1,771,099
995,508
11,736
42,941
27,102
Changes in Board of Directors
The following changes have taken place in the Board of Directors since the last directors' report:
On account of his new assignment within Standard Chartered Group ("Group"), Mr. Mohsin Ali Nathani decided to step down from the office of
CEO and resign from the position of Director on the Board of Standard Chartered Bank (Pakistan) Limited. Effective from February 01, 2014,
the Board of Directors has appointed Mr. Khalid Elgibaly as CEO and Director in place of Mr. Mohsin Ali Nathani. Mr. Khalid Elgibaly's pervious
assignment within the Group was Regional Head of Consumer Banking for the Middle East. Prior to joining the Group, Mr. Khalid Elgibaly was
the CEO for Barclays, Egypt & North Africa. Mr. Khalid Elgibaly is an experienced banker and has held a variety of senior consumer banking
roles, spanning marketing, cards and retail asset products, insurance, wealth management products and branch distribution background across
several markets including Egypt, UAE, USA and UK.
The Board places on record its appreciation for the valuable services rendered by Mr. Mohsin Ali Nathani during his association with the Bank.
Under his leadership, Mr. Mohsin Ali Nathani has helped the bank deepen it's relationships with customers / clients and played a key role in
the transformation of business.
Pattern of Shareholding
The pattern of shareholding as required under section 236(2)(d) of the Companies Ordinance, 1984, and Clause (xvi) of the Code of Corporate
Governance forms part of this Annual Report. At December 31, 2013, Standard Chartered Bank, UK (holding company) held 98.99% shares
of SCBPL.
External Auditors
The Audit Committee has suggested the name of KPMG Taseer Hadi & Co., Chartered Accountants as external auditors of the Bank for the
next term. The Board of Directors, on the suggestion of Audit Committee recommended the name of retiring auditors KPMG Taseer Hadi &
Co., Chartered Accountants as external auditors for the next term. The retiring auditors, being eligible, offer themselves for re-appointment in
the forthcoming Annual General Meeting.
Appreciation and Acknowledgment
We take this opportunity to express our gratitude to our customers and business partners for their continued support and trust. We offer sincere
appreciation to the State Bank of Pakistan for their guidance and cooperation extended to the Bank. Finally, we are also thankful to our associates,
staff and colleagues for their committed services provided to our valued customers.
On behalf of the Board
Khalid Elgibaly
Chief Executive
Karachi: March 05, 2014
08
Standard Chartered Annual Report 2013
Management's Statements on Internal Controls
and Risk Management Framework
The following statements are made by the management to meet the requirements of the State Bank of Pakistan (SBP) BSD
Circular letter no. 2 of 2005 and BSD Circular letter no. 3 of 2005.
Internal Controls
Management of Standard Chartered Bank (Pakistan) Limited (the Bank) is responsible for establishing and maintaining a sound
system of internal controls aimed at achieving the following objectives of the Bank:
•
•
•
Efficiency and effectiveness of operations
Compliance with applicable laws and regulations
Reliability of financial reporting
1.
The Management has adopted different strategies to ensure effective monitoring and improvement of internal controls.
These include Internal Audit and Assurance and Operational Risk Management & Assurance Framework (ORMAF) in
which assurance responsibilities are divided into three lines of defense i.e. first being the business function, second is
the Operational Risk Assurance and support from Group Internal Audit is the third line of defense.
2.
The policies and procedures in all significant areas and as per the directives of the regulators have been duly approved
by the Board.
3.
An organization structure has been established which supports clear lines of communication and tiered levels of authority
with accountability.
4.
The Bank has an effective Internal Audit Department, which reports directly to the Audit Committee of the Board. The
department periodically carries out detailed risk-based reviews/audits of its branches and various departments / units
based on a yearly plan which is approved by the Audit Committee.
5.
Internal control policies, tools and reporting structures have been enhanced to provide greater clarity over roles and
responsibilities. Relevant training materials have also been updated and deployment is underway.
6.
Management gives due consideration to the recommendations made by the internal and external auditors for improvements
in the internal control system and take action to implement such recommendations.
7.
The management has put in place evaluation and approval procedures for major capital expenditure and other transactions.
8.
There is an annual budgeting and strategic planning process. Financial forecasts are reviewed during the year on a
periodic basis to reflect significant changes in business environment. Regular reporting and monitoring of financial
performance of the departments and the Bank as a whole, using operating statistics and monthly management accounts
which highlight key performance indicators and variance from budgets and forecasts is in place.
9.
Review and implementation of health, safety, environment and contingency management processes and other significant
policies are carried out and reporting mechanism is in place.
10.
SCBPL has largely adopted the internationally accepted Committee of Sponsoring Organizations of the Treadway
Commission (COSO) Internal Controls Integrated Framework and available best international practices in relation to
Internal Controls over Financial Reporting (ICFR) in compliance with SBP guidelines on Internal Controls. The Bank has
devised a well defined and comprehensive Internal Control Program along the lines of stage wise roadmap, as suggested
by SBP. Accordingly, the Bank has completed a detailed documentation of the existing processes and controls and related
Risk and Control Matrices. It has also completed a comprehensive gap analysis of the control design and developed
remediation plans for the gaps identified. Furthermore, the Bank has developed comprehensive management testing
plans and reporting framework for ensuring ongoing operating effectiveness of key controls and has significantly addressed
the design improvement opportunities identified to complete the project related initiatives. Additionally, the Bank has also
engaged consultants to independently perform the Quality Assurance / Validation exercise to provide assurance whether
after completion of remedial plans, gaps have been bridged accordingly.
Risk Management Framework
The Bank in an effort to fully implement guidelines issued by SBP on risk management throughout the Bank, has integrated
enterprise wide risk management, which brings together various types of risks being faced by the entire organization
under one umbrella. Through the risk management framework the Bank seeks to manage efficiently the core risks: credit,
market and liquidity risk. These arise directly through the Bank's commercial activities whilst operational risk, reputational
risk, pension risk, capital risk and strategic risk are normal consequences of any business undertaking.
09
Management's Statements on Internal Controls
and Risk Management Framework
The basic risk management principles followed by the Bank include:
Balancing risk and reward: Risk is taken in line with the requirements of the Bank's stakeholders. Risk should be taken
within the Bank's risk appetite, consistent with the approved strategy. Any such risks are avoided which have a material
probability of causing financial distress to the Bank or its clients or customers.
Responsibility: Given the Bank is in the business of taking risk, it is everyone's responsibility to ensure that risk taking
is both disciplined and focused. The Bank takes account of its social responsibilities and its commitment to customers
in taking risk to produce a return.
Accountability: Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource.
All risk taking must be transparent, controlled and reported.
Anticipation: The Bank looks to anticipate future risks and to ensure awareness of all risk.
Competitive Advantage: The Bank seeks to achieve competitive advantage through efficient and effective risk management
and control.
Risk management: The Bank aims to implement best practices and have a specialist risk function of international standards,
with strength in depth, experience across risk types and economic scenarios.
Ultimate responsibility for the effective management of risk rests with the Company's Board of Directors. Acting within
an authority delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of
the Risk Committee ("RC") and the Asset and Liability Committee ("ALCO").
RC headed by Chief Risk Officer (CRO), through authority delegated by the Board through the Bank's Executive Committee,
is responsible for credit risk, market risk, operational risk, compliance and regulatory risk, legal risk and reputational risk.
ALCO, through authority delegated by the Board through the Bank's Executive Committee, is responsible for management
of the Bank's liquidity, capital adequacy and structural foreign exchange risk. The Country Pension Committee through
authority delegated by the Board through the Bank's Executive Committee, is responsible for the management of pension
risk.
The day to day responsibility for managing risk rests with CRO who oversees and manages the risk through a team of
managers; Senior Credit Officer responsible for credit risk in Wholesale Bank, Head of Consumer Credit responsible for
credit risk in Consumer Bank (including SME), Head of Special Assets Management responsible for remedial risk
management, Head of Credit Risk Controls responsible for collateral management, security documentation, credit MIS
and controls, Head of Market Risk responsible for liquidity risk and risks associated with price movements, arising from
interest and exchange rate movements and Head of Operational Risk responsible for enterprise wide operations. The
Bank has established policies, procedures, processes, and controls and has provided the Risk team adequate support
by way of risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing and managing
risk.
Following are the important factors of the risk management function within the Bank.
Credit Risk
Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures
may arise from lending, trade finance, securities and derivative exposures. Credit exposures include both individual
borrowers and groups of connected counterparties and portfolios in the banking and trading books.
The Board of Directors has delegated down the authority to RC through the Bank's Executive Committee to establish
risk appetite and make recommendations to the Board for approval of risk appetite and policies for managing credit risk.
The CEO and the Executive Committee in turn rely on CRO and the Risk Committee to determine these and recommend
for their support and Board's approval. The RC is also delegated down by the Boards' responsibility to delegate credit
authorities to independent Risk Officers.
Credit risk appetite is established through business strategy papers and underwriting standards by the business managers,
which are approved by the Board once recommended, and supported by the Executive Committee.
Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the
Senior Credit Officer and Head of Consumer Credit levels for their respective jurisdictions with specific policies and
procedures being adapted to different risk environments and business goals. Credit analysis includes review of facility
details, credit grade determination and financial spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing
based on scenario analysis is a combined responsibility of Client Relationship, Risk and Finance function. Client relationship
origination and credit approval roles are clearly segregated throughout Wholesale and Consumer Banks.
10
Standard Chartered Annual Report 2013
Management's Statements on Internal Controls
and Risk Management Framework
Wholesale Banking: Within the Wholesale Banking business, an alpha numerical risk grading system is used for quantifying
the risk associated with a counter-party. The grading is based on a probability of default measure, with customers analysed
against a range of quantitative and qualitative measures. Expected Loss is used for further assessment of individual
exposures and portfolio analysis. There is a clear segregation of duties with loan applications being prepared separately
from the approval chain.
Consumer Banking: For Consumer Banking, program based standard credit application forms are generally used, which
are processed in central units for different products and market segments. Consumer Banking Analytics team has
developed Bureau scores and uses Bureau data for portfolio monitoring and for underwriting new business. Medium
enterprises relationship based business of Consumer Bank operates much like Wholesale Banking with numerical risk
grading system for quantifying counter party risk. As with Wholesale Banking, origination and approval roles are segregated.
Market Risk
The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk
exposures arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure
to equity and commodity price risk.
Market risk is managed by the Head of Market Risk reporting directly to the CRO, who agrees policies and procedures
and levels of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms
of agreed policy. These are agreed and delegated down by RC under delegated authority from the Board, and are
monitored by the Head of Market Risk as part of an independent risk management function. Policies cover both trading
and non-trading books.
In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios,
factor sensitivity measures and derivatives are also employed as additional risk management tools to manage and hedge
market risk exposures. Risk models are periodically back tested against actual results to ensure that pre-determined
levels of accuracy are maintained.
Liquidity Risk
The Bank defines liquidity risk as the potential that the Bank either does not have sufficient liquid financial resources
available to meet all its obligations as they fall due, or can only access these financial resources at excessive cost.
Liquidity risk, both short and structural, is monitored through liquidity risk management framework and is managed through
the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for liquidity, risk
management.
A range of tools are used for the management of liquidity. These comprise commitment and wholesale borrowing guidelines,
key balance sheet ratios, medium term funding requirements and day to day monitoring of future cash flows.
In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are
in place and can be implemented on a timely basis to minimise the liquidity risk that may arise due to unforeseen adverse
changes in the market place.
A substantial portion of the Bank's assets are funded by customer deposits made up of current and savings accounts
and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source
of funds.
The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements
or as prudential investments of surplus funds.
Operational Risk
Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of
technology, processes, infrastructure, personnel and other risks having an operational risk impact.
The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management
framework is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental
risk. The CORC is chaired by the CEO, and CRO is an active member of this forum.
11
Management's Statements on Internal Controls
and Risk Management Framework
All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues
and exceptions are reported to CORC and are also picked up by the independent Risk function for discussion at the Risk
Committee chaired by the CRO. Disaster recovery procedures, business contingency planning, self-compliance assurance
and internal audits also form an integral part of the operational risk management process.
Reputational Risk
Reputational risk is any material adverse effect on the relations between the Bank and any one of its significant stakeholders.
It is Bank policy that the protection of the Bank's reputation should take priority over all activities including revenue
generation at all times. Reputational risk is not a primary risk, but will arise from the failure to effectively mitigate one or
more of country, credit, liquidity, market, legal, regulatory and operational risk. It may also arise from the failure to comply
with Social, Environmental and Ethical standards. All staff are responsible for day to day identification and management
of reputational risk.
Pension Risk
Pension risk is the potential for loss due to having to meet an actuarially assessed shortfall in the Bank's defined benefits
pension schemes. Pension obligation risk to a bank arises from its contractual or other liabilities to or with respect to an
occupational pension scheme. It represents the risk that additional contributions will need to be made to a pension scheme
because of a future shortfall in the funding of the scheme.
The Bank assesses and monitors the assets and liabilities within the defined benefit scheme with the support of independent
actuarial advisers. Actuarial methodologies are used for determining the present values of the assets and liabilities of
the scheme. The assumptions used allow for the projected trends in the salaries, turnover and mortality of the membership.
The Bank's Country Pensions Committee has oversight of the pension schemes and reviews the assets and liabilities
position on a regular basis.
Capital Risk
Capital risk is the potential for actual or opportunity loss arising from sub optimal allocation of capital or increase in cost
of capital.
The Bank manages its demand for capital by regular monitoring of capital requirements and asset exposures. The Bank's
Asset and Liability Committee (ALCO) monitors Risk Weighted Assets (RWA) growth and provides guidance for RWA
management, capital structure and maintenance of capital ratio.
Strategic Risk
Strategic risk is the potential for opportunity loss from failure to optimise the earnings potential of the Bank's franchise.
Strategic risk is not governed or managed through the use of a policy. Rather, the Board maintains the primary responsibility
to establish the strategic direction of the Bank. It will develop its strategies, which include a view on the forecast capital
position, in line with the Group's overall strategy. The Bank's actual performance to strategy is measured on a continual
basis at a more granular level at ALCO and CRC, but also from an overall perspective by the Board or ExCo through
budgets and forecasts.
Compliance and Regulatory Risk
Compliance and Regulatory risk includes the risk of non-compliance with regulatory requirements. The Compliance and
Regulatory risk function is responsible for establishing and maintaining an appropriate framework of compliance policies
and procedures. Compliance with such policies and procedures is the responsibility of all managers.
Legal Risk
Legal Risk is the risk of unexpected loss, including reputational loss arising from defective transaction or contracts, claims
being made or some other event resulting in a liability or other loss for the Bank, failure to protect the title to and ability
to control the rights to assets of the Bank (including intellectual property rights), changes in the law or jurisdiction risk.
The Bank manages legal risk through Legal function, Legal risk policies and procedures and effective use of its internal
and external lawyers.
By order of the Board
Khalid Elgibaly
Chief Executive Officer
12
Standard Chartered Annual Report 2013
Report of SCBPL Shariah Advisor
For the year ended December 31, 2013
The year under review was the tenth year of Islamic commercial banking for Standard Chartered Bank (Pakistan)
Limited (SCBPL) through the Saadiq platform. During this year the bank developed a number of new products and
arranged a number of structured transactions after due approval from the Shariah Advisor.
Islamic Business Review
At the close of the year ended December 31, 2013 the bank had total financing and investments of Rs. 38.77 Billion.
The breakup of these assets in different modes of Islamic finance is as follows:
Islamic Financing and Investment 2013
During the year under review, SCBPL has diversified its portfolio into various Islamic financing modes Including
Musharkah, Diminishing Musharakah and Murabahah etc. Significant percentage 38.08% of the assets has been
financed using the Diminishing Musharakah and Musharakah financing modes.
At year end December 31, 2013, the bank had total Islamic deposits of Rs. 34.58 Billion. 57.96% of Islamic deposits
are based on Qard (Current Account) and 42.04% are based on Mudarabah (including Saving and Term Accounts)
concepts.
13
Report of SCBPL Shariah Advisor
For the year ended December 31, 2013
Shariah Review
During the year under review, annual Shariah review of Islamic Banking Business was conducted on a test check
basis. During the Shariah review several Islamic Products (including liabilities) and Islamic transactions based on
different mode of Islamic financing including Murabahah, Musawamah, Musharakah, Diminishing Musharakah and
Ujrah, were checked.
The following major activities have been performed to ensure Shariah Compliance of Islamic Banking Business:
• Review of Standard Agreements of Financing products
• Review of Murabahah transaction notices, confirmation of purchases, Form of offers, Payment evidences,
Purchase evidences and Physical inspections
• Review of Process flow adherence in Murabahah transactions
• Review of Qard and Mudarabah based accounts documents
• Review of profit and loss distribution and Pool Management framework
• Review of Mudarabah placements deals
• Review of Participation ratio of Bank & Customer in Diminishing Musharakah
Islamic branches were also visited and suggestions for Shariah excellence and further improvement were advised.
The overall Shariah compliance of the Islamic Business operation and their alignment with the Shariah guidelines
was also reviewed.
In addition, as part of continuous improvement necessary recommendations and corrective measures were suggested,
all issues identified were duly addressed by management.
Subject to the aforesaid, the affairs of SCBPL were found to have been carried out in accordance with the rules
and principles of Shariah including Shariah certificates of the Shariah Advisor and SBP regulations & guidelines
related to Shariah compliance.
Late Payment Charity
During the year an amount of approximately Rs 4.29 million was received from the customers due to "Delay in
Payments" and the same amount has been transferred to the charity account. The collected Charity was disbursed
as per the guidance of Shariah Advisor.
Training
During the year under review, in SCBPL approximately 68 training sessions related to Islamic Banking and Saadiq
products were arranged and approximately 694 employees has been trained throughout Pakistan. It is good to see
that the management is paying attention on Islamic Banking training programs and considered it as an essential
element to build/bring good resources within the organization.
Development & Progress
As part of the improvement of Shariah compliance the Bank has hired experienced resource to strengthen the
Shariah compliance function of the bank.
Recommendation
1- The bank should send key Islamic Banking staff for certificate/diploma programmes organized by reputable
institutions of the country.
2- There should be more emphasis on Islamic Banking & relevant Saadiq products training to sales/relationship
management staff of the bank.
3- Sales/relationship management teams must ensure that customers have been provided necessary
information of a particular Islamic product and have understood the requirement of the same at onset of
the relationship.
4- In the continuation of Islamic banking awareness programmes, the bank is advised to arrange engagement
sessions with its customers.
May Allah Subhanah wa Ta'ala accept our endeavors and grant us Ikhlas to fulfill our responsibility towards Islamic
banking which is very mingled between service of deen and service for ourselves.
Muhammad Abdul Mubeen
Shariah Advisor
Standard Chartered Bank (Pakistan) Ltd.
14
Standard Chartered Annual Report 2013
Review Report to the Members on Statement of Compliance with the
Code of Corporate Governance
We have reviewed the enclosed Statement of Compliance with the best practices contained in the Code of Corporate Governance
(the Code) prepared by the Board of Directors of Standard Chartered Bank (Pakistan) Limited ("the Bank") for the year ended
31 December 2013 to comply with the requirements of Listing Regulations No. 35 of the Karachi Stock Exchange, Chapter XI
of the Lahore Stock Exchange and Chapter XI of the Islamabad Stock Exchange, where the Bank is listed.
The responsibility for compliance with the Code is that of the Board of Directors of the Bank. Our responsibility is to review, to
the extent where such compliance can be objectively verified, whether the Statement of Compliance reflects the status of the
Bank's compliance with the provisions of the Code and report if it does not and to highlight any non-compliance with the
requirements of the Code. 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 Code.
As a part of our audit of 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 Code requires 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 of its related party transactions distinguishing between transactions
carried out on terms equivalent to those that prevail in arm's length transactions and transactions which are not executed at
arm's length price and recording proper justification for using such alternate pricing mechanism. 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 any procedures to determine 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 best practices contained in the Code as applicable
to the Bank for the year ended 31 December 2013.
Date: 05 March, 2014
Karachi
KPMG Taseer Hadi & Co.
Chartered Accountants
15
Statement of Compliance with the Code of
Corporate Governance
The Board of Directors of Standard Chartered Bank (Pakistan) Limited ("Bank") supports and re-confirms its commitment to
continued support and implementation of the highest standards of Corporate Governance at all times.
This statement is being presented to comply with the Code of Corporate Governance (the Code), contained in the listing
regulations of Karachi, Lahore & Islamabad Stock Exchanges, for the purpose of establishing a framework of Good Governance,
whereby a listed company is managed in compliance with the best practices of Corporate Governance.
The Bank has applied the principles contained in the Code in the following manner:
1.
The Bank encourages representation of non-executive (independent) directors on its Board of Directors. At present the
Board consists of the following directors:
Mr. Christos Papadopoulos (Chairman)
Non Executive Director
Mr. Raheel Ahmed
Non Executive Director
Mr. Andrew Bainbridge
Non Executive Director
Mr. Khalid Elgibaly (CEO)
Executive Director
Mr. Najam I. Chaudhri
Independent Non Executive Director
Mr. Parvez Ghias
Independent Non Executive Director
Mrs. Spenta Kandawalla
Independent Non Executive Director
Independent non-executive directors meet the criteria of independence under clause i (b) of the Code.
2.
The Directors have confirmed that none of them is serving as a director in more than seven listed companies, including
this Bank.
3.
All the resident directors of the Bank are registered taxpayers and none of them has defaulted in payment of any loan
to a banking company, a DFI or an NBFI or, being a member of a stock exchange, has been declared as a defaulter
by that stock exchange.
4.
The Bank has prepared a 'Code of Conduct', which has been approved by the Board and is disseminated to all the
directors and employees of the Bank.
5.
The Board has developed and approved a vision/ mission statement. The Board has also approved significant policies
and adopted certain Standard Chartered Group policies as far as they are in accordance with the local laws and
regulations. A complete record of particulars of significant policies has been maintained.
6.
All the powers of the Board have been duly exercised and decisions on material transactions, including appointment
and determination of remuneration and terms and conditions of employment of the CEO have been taken by the Board.
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.
8.
Casual vacancy created on the Board during the year was filled within stipulated time.
9.
The Board met at least once in every quarter. Notices of meetings, agendas and related papers are circulated at least
seven days before the meeting except in case where an emergent meeting is to be held. The minutes of the meetings
were appropriately recorded and circulated.
10.
The Board had approved appointment of CFO, Head of Internal Audit and Company Secretary including their remuneration
and terms and conditions of employment. No new appointments have been made during the year.
11.
The Board has formed an Audit Committee. The terms of reference of this Committee have been approved by the Board
and advised to the Committee for compliance. Committee also ensures independence of the internal audit function and
independence and objectivity of the External Auditors.
12.
The Audit Committee of the Board comprises of three members. Two members including the Chairman are independent
non-executive directors while the other member is a non-executive director.
13.
The meetings of the Audit Committee are held at least once every quarter prior to approval of interim and final results
of the Bank and as required by the Code.
16
Standard Chartered Annual Report 2013
14.
The Board has constituted a Human Resource & Remuneration Committee. It comprises of three members; one each
of independent non-executive director, executive director and a non-executive director, who is also the Chairman of
the Committee.
15.
The Directors' Report for this year has been prepared in compliance with the requirements of the Code and fully describes
the salient matters required to be disclosed.
16.
The financial statements of the Bank were duly endorsed by CEO and CFO before approval of the Board.
17.
The directors, CEO and executives do not hold any interest in the shares of the Bank other than that disclosed in the
pattern of shareholding. No trading in shares of the Bank was carried out by the Directors, Executives and their spouses
and minor children during the year as confirmed by them.
18.
All Directors are provided with an Orientation Pack on their appointment. During the period under review, an internally
organized orientation session was attended by two independent non-executive directors. All the independent nonexecutive directors are 'Certified Directors' from Pakistan Institute of Corporate Governance (PICG) while two nonexecutive directors have already attended a training program organized by PICG last year.
19.
The Bank has complied with all the corporate and financial reporting requirements of the Code.
20.
The Board has set up an effective Internal Control (Audit) department. The Internal Control Department reports directly
to the Chairman of the Board Audit Committee.
21.
The statutory auditors of the Bank have confirmed that they have been given a satisfactory rating under the quality
control review program of the Institute of Chartered Accountants 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 Institute of Chartered
Accountants of Pakistan.
22.
The statutory auditors or the persons associated with them have not been appointed to provide other services except
in accordance with the listing regulations and the auditors have confirmed that they have observed IFAC guidelines in
this regard.
23.
Material/ price sensitive information, if any, as described in clause (xx) of the Code has been disseminated to the Stock
Exchanges and Securities and Exchange Commission of Pakistan in a timely manner.
24.
The 'closed period', prior to the announcement of interim/final results, and business decisions, which may materially
affect the market price of company's securities, was determined and intimated to directors, employees and stock
exchange(s).
25.
The Bank has complied with the requirements as stipulated in clause 35 (x) of the Listing Regulations relating to Related
Party transactions.
26.
All other material principles contained in the Code have been complied with.
By Order of the Board
Khalid Elgibaly
Chief Executive Officer
17
SIX YEARS KEY FINANCIAL DATA
Rupees in million
Key Financial Data
2008
2009
2010
2011
2012
2013
Standard Chartered Bank (Pakistan) Limited
Revenue
22,985
23,167
23,473
26,755
26,796
24,214
Operating Profit
10,330
10,802
9,993
12,912
12,705
15,213
Profit before Tax
1,014
1,384
5,563
8,431
9,108
16,144
608
746
3,606
5,446
5,911
10,528
16,419
16,284
17,278
20,540
19,480
18,329
Profit after Tax
Net Mark-up Income before provision
Non Mark-up Income
6,566
6,883
6,195
6,215
7,316
5,885
Non Mark-up Expenses
12,655
12,365
13,480
13,843
14,091
9,000
Shareholder’s Equity
42,769
47,717
51,073
54,589
54,292
55,729
Total Assets
264,629
312,845
321,923
356,405
388,872
399,438
Advances - net
125,601
124,447
139,269
129,620
135,184
135,495
29,587
83,785
72,637
104,375
131,977
146,687
Investments - net
Deposits
174,552
206,958
220,266
235,953
266,670
296,557
Expense / Income Ratio
55%
53%
57%
52%
53%
37%
Advances / Deposits Ratio
72%
60%
63%
55%
51%
46%
Return on Equity
1.42%
1.65%
7.30%
10.31%
10.86%
19.14%
Return on Assets
0.23%
0.26%
1.14%
1.61%
1.59%
2.67
Standard Chartered Bank (Pakistan) Limited
Financial Statements
For the year ended
31 December 2013
19
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed unconsolidated statement of financial position of Standard Chartered Bank (Pakistan) Limited ("the Bank")
as at 31 December 2013 and the related unconsolidated profit and loss account, unconsolidated statement of comprehensive income,
unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes forming part thereof
(here-in-after referred to as the 'financial statements') for the year ended 31 December 2013, 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.
It is the responsibility of the Bank's Board of Directors to establish and maintain a system of internal control, and prepare and present
the financial statements in conformity with the approved accounting standards and the requirements of the Banking Companies Ordinance,
1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984). Our responsibility is to express an opinion on these statements
based on our audit.
We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. These standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the
overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion and, after due
verification, which in case of loans and advances covered more than 60% of the total loans and advances of the Bank, we report that:
in our opinion, proper books of account have been kept by the Bank as required by the Companies Ordinance, 1984
(XLVII of 1984);
b)
in our opinion:
i)
the statement of financial position and the related profit and loss account together with the notes thereon have been
drawn up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance,
1984 (XLVII of 1984), and are in agreement with the books of account and are further in accordance with the 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 the 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 unconsolidated
statement of financial position, unconsolidated profit and loss account, unconsolidated statement of comprehensive
income, unconsolidated cash flow statement and unconsolidated statement of changes in equity together with the notes
forming part thereof conform with approved accounting standards as applicable in Pakistan, and give the information
required by the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of
1984), in the manner so required and give a true and fair view of the state of the Bank's affairs as at 31 December 2013
and its true balance of profit, its cash flows and its changes in equity for the year then ended; and
d)
in our opinion 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.
Date: 05 March, 2014
Karachi
KPMG Taseer Hadi & Co.
Chartered Accountants
Muhammad Taufiq
Financial statements and notes
a)
20
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Financial Position
As at 31 December 2013
Note
ASSETS
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Intangible assets
Deferred tax assets - net
Other assets
2013
2012
-------- (Rupees in '000) ---------
4
5
6
7
8
9
10
11
12
32,331,083
1,451,558
22,158,840
146,686,716
135,495,032
6,155,222
26,221,917
28,937,914
399,438,282
31,487,869
2,363,144
19,845,269
131,976,863
135,184,145
6,371,213
26,274,033
1,523,544
33,845,937
388,872,017
13
14
15
16
11
17
6,540,213
16,566,175
296,556,991
2,500,000
118,753
21,427,133
343,709,265
55,729,017
6,164,867
23,399,389
266,670,061
2,750,000
35,595,406
334,579,723
54,292,294
Share capital
Reserves
Unappropriated profit
18
19
Surplus on revaluation of assets - net of deferred tax
20
38,715,850
7,044,339
6,526,127
52,286,316
3,442,701
55,729,017
38,715,850
4,938,736
6,676,380
50,330,966
3,961,328
54,292,294
CONTINGENCIES AND COMMITMENTS
21
LIABILITIES
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Deferred tax liabilities - net
Other liabilities
NET ASSETS
REPRESENTED BY:
The annexed notes 1 to 42 and Annexure I form an integral part of these un-consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
21
Un-Consolidated Profit and Loss Account
For the year ended 31 December 2013
Note
Mark-up / return / interest earned
Mark-up / return / interest expensed
Net mark-up / return / interest income
Reversal / (Provision) against non-performing loans and advances
Recovery of amounts written off
Provision for diminution in the value of investments
Bad debts written off directly
30,376,688
(12,047,981)
18,328,707
31,133,594
(11,653,723)
19,479,871
8.3 & 17.2
1,122,548
332,950
(284,833)
(239,868)
930,797
19,259,504
(3,101,367)
271,775
(442,167)
(325,188)
(3,596,947)
15,882,924
3,027,008
76,817
2,911,976
732,486
3,493,744
75,606
1,609,512
1,169,658
7.11
25
10,978
(874,309)
5,884,956
25,144,460
15,850
951,576
7,315,946
23,198,870
26
27
28
(8,729,420)
60,434
(331,294)
(9,000,280)
16,144,180
16,144,180
(13,856,101)
(50,320)
(184,184)
(14,090,605)
9,108,265
9,108,265
(3,749,027)
(21,136)
(1,846,004)
(5,616,167)
(2,326,067)
(21,136)
(850,507)
(3,197,710)
10,528,013
5,910,555
7.3
8.4.1
NON MARK-UP / NON INTEREST EXPENSES
Administrative expenses
Other reversal / (provisions) / asset write-offs
Other charges
Total non mark-up / non interest expenses
24
Extra-ordinary / unusual items
PROFIT BEFORE TAXATION
Taxation - current
- prior years'
- deferred
29
PROFIT AFTER TAXATION
-------- (Rupees) --------BASIC / DILUTED EARNINGS PER SHARE
30
2.72
1.53
The annexed notes 1 to 42 and Annexure I form an integral part of these un-consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
Financial statements and notes
22
23
Net mark-up / return / interest income after provisions
NON MARK-UP / NON INTEREST INCOME
Fees, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Unrealized gain on revaluation of investments classified as
held for trading
Other income
Total non mark-up / non interest income
2013
2012
-------- (Rupees in '000) ---------
22
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Comprehensive Income
For the year ended 31 December 2013
2013
2012
-------- (Rupees in '000) --------Profit after tax for the year
10,528,013
5,910,555
Other comprehensive income:
Surplus / (deficit) on revaluation of 'Available for Sale' financial assets
(i)
-
-
Surplus / (deficit) on revaluation of fixed assets
(ii)
-
-
Actuarial gain / (loss) on defined benefit plans
(27,097)
15,863
Deferred tax asset / (liability) on actuarial gain / (loss)
9,484
(17,613)
(5,552)
10,311
10,510,400
5,920,866
Total comprehensive income for the year
(i) Surplus / (deficit) on revaluation of 'Available for Sale' securities-net of deferred tax is presented under a separate head below
equity as 'surplus / deficit on revaluation of assets' in accordance with the requirements specified by the State Bank of Pakistan
vide its BSD circular 20 dated 04 August 2000 and BSD circular 10 dated 13 July 2004.
(ii) Surplus / (deficit) on revaluation of fixed assets-net of deferred tax is presented under a separate head below equity as 'surplus /
deficit on revaluation of assets' in accordance with the requirements of section 235 of the Companies Ordinance, 1984. The details
of movement in balance is disclosed in note 20.1 to these financial statements.
The annexed notes 1 to 42 and Annexure I form an integral part of these un-consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
23
Un-Consolidated Cash Flow Statement
For the year ended 31 December 2013
Note
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax for the year
Less: Dividend income
Adjustments for:
Depreciation
Amortization
Gain on disposal of fixed assets - net
Unrealized gain on revaluation of investments classified as held for trading - net
Other (reversal) / provisions / asset write-offs
Provision for diminution in the value of investments
Provision / (reversal) against loans and advances - net of recoveries
(Increase) / decrease in operating assets
Lendings to financial institutions
Net investments in 'held for trading' securities
Advances
Other assets (excluding advance taxation)
Increase / (decrease) in operating liabilities
Bills payable
Borrowings from financial institutions
Deposits and other accounts
Other liabilities
Cash inflow before taxation
Income tax paid
Net cash generated from operating activities
CASH FLOW FROM FINANCING ACTIVITIES
(Repayment) / Issuance of sub-ordinated Term Finance Certificates -net
Dividend paid
Net cash used in financing activities
Increase in cash and cash equivalents for the year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
31
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cash and balances with treasury banks
Balances with other banks
16,144,180
(76,817)
16,067,363
9,108,265
(75,606)
9,032,659
493,372
52,116
(163,496)
(10,978)
(60,434)
284,833
(1,215,630)
(620,217)
15,447,146
485,249
138,538
(37,086)
(15,850)
50,320
442,167
3,154,780
4,218,118
13,250,777
(2,313,571)
2,704,327
904,743
(5,310,412)
(4,014,913)
360,702
2,261,499
(8,718,791)
(1,044,458)
(7,141,048)
375,346
(6,833,214)
29,886,930
(3,783,783)
19,645,279
31,077,512
(3,850,397)
27,227,115
1,588,078
4,037,525
30,717,339
485,823
36,828,765
42,938,494
(4,064,040)
38,874,454
(18,243,633)
76,817
(509,569)
335,326
(18,341,059)
(29,288,552)
75,606
(482,274)
37,423
(29,657,797)
(250,000)
(8,704,428)
(8,954,428)
(68,372)
33,851,013
33,782,641
2,050,800
(6,763,705)
(4,712,905)
4,503,752
29,347,261
33,851,013
32,331,083
1,451,558
33,782,641
31,487,869
2,363,144
33,851,013
The annexed notes 1 to 42 and Annexure I form an integral part of these un-consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
Financial statements and notes
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in 'available for sale' securities
Dividend income received
Net investment in fixed assets (including intangible assets)
Sale proceeds on disposal of operating fixed assets
Net cash used in investing activities
2013
2012
-------- (Rupees in '000) ---------
24
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Changes in Equity
For the year ended 31 December 2013
Share
Capital
Share
Premium
Statutory
Reserve
Unappropriated
Profit
Total
--------------------------------------- (Rupees in '000) -------------------------------------Balance as at 31 December 2011
38,715,850
1,036,090
2,720,535
8,797,964
51,270,439
Total Comprehensive income for the year
Profit after tax for the year ended 31 December 2012
-
-
-
5,910,555
5,910,555
-
-
-
10,311
5,920,866
10,311
5,920,866
-
-
-
2,802
2,802
-
-
-
(95,212)
(92,410)
(95,212)
(92,410)
Transfer to statutory reserve
-
-
Cash dividend (Final 2011) - Rs. 1 per share
-
-
Other Comprehensive income
Actuarial gain on defined benefit plan - net of tax
Transactions with owners, recorded directly in equity
Share based payment transactions (Contribution from
holding Company)
Payment against share based payment transactions (to
holding Company)
1,182,111
-
Cash dividend (Interim 2012) - Rs. 0.75 per share
Transferred from surplus on revaluation of
fixed asset - net of deferred tax
-
Balance as at 31 December 2012
-
38,715,850
1,036,090
3,902,646
(1,182,111)
-
(3,871,585)
(3,871,585)
(2,903,689)
(2,903,689)
7,345
7,345
6,676,380
50,330,966
10,528,013
10,528,013
151,895
151,895
Total Comprehensive income for the year
Profit after tax for the year ended 31 December 2013
-
Surplus on revaluation of assets - net of tax
-
-
-
Other Comprehensive income
Actuarial gain on defined benefit plan - net of tax
Transactions with owners, recorded directly in equity
Share based payment transactions (Contribution from
holding Company)
Payment against share based payment transactions (to
holding Company)
Transfer to statutory reserve
-
-
-
(17,613)
10,662,295
(17,613)
10,662,295
-
-
-
59,741
59,741
-
-
-
(60,977)
(1,236)
(60,977)
(1,236)
-
-
2,105,603
Cash dividend (Final 2012) - Rs. 1.25 per share
(2,105,603)
-
(4,839,481)
(4,839,481)
Cash dividend (Interim 2013) - Rs. 1 per share
-
-
-
(3,871,585)
(3,871,585)
Transferred from surplus on revaluation of
fixed asset - net of deferred tax
-
-
-
5,357
5,357
6,526,127
52,286,316
Balance as at 31 December 2013
38,715,850
1,036,090
6,008,249
Included in unappropriated profits is Rs. 950.545 million which is not available for distribution as cash or stock dividend. This is further explained in note 8.2.1 to
these financial statements.
The annexed notes 1 to 42 and Annexure I form an integral part of these un-consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
25
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
1.
STATUS AND NATURE OF BUSINESS
Standard Chartered Bank (Pakistan) Limited ("the Bank") was incorporated in Pakistan on 19 July 2006 and was granted
approval for commencement of banking business by State Bank of Pakistan, with effect from 30 December 2006. The
ultimate holding company of the Bank is Standard Chartered PLC, incorporated in England. The registered office is at
Standard Chartered Bank Building, I.I. Chundrigar Road, Karachi.
The Bank commenced formal operations on 30 December 2006 through amalgamation of entire undertaking of Union
Bank Limited and the business carried on by the branches in Pakistan of Standard Chartered Bank, a bank incorporated
by Royal Charter and existing under the laws of England. The scheme of amalgamation was sanctioned by State Bank
of Pakistan vide its order dated 4 December 2006. The Bank's shares are listed on all stock exchanges in Pakistan.
The Bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962 and has a total
number of 116 branches in Pakistan (2012: 130 branches in Pakistan) in operation at 31 December 2013.
Standard Chartered Bank (Pakistan) Limited has the following three subsidiaries. All of them are incorporated in Pakistan.
-
Standard Chartered Leasing Limited
Standard Chartered Modaraba
Standard Chartered Services of Pakistan (Private) Limited
These financial statements are separate financial statements of the Bank in which investments in subsidiaries are
accounted for on the basis of direct equity interest rather than on the basis of reported results. Consolidated financial
statements are presented separately.
2.
BASIS OF PREPARATION
2.1
Basis of presentation
The financial results of the Islamic banking branches have been consolidated in these financial statements for reporting
purposes. Key financial figures of the Islamic banking branches are disclosed in note 41 to these financial statements.
2.2
Statement of compliance
These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by
the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions
of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the
directives issued by State Bank of Pakistan. In case the requirements differ, the provisions of and directives issued under
the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by the State Bank
of Pakistan shall prevail.
The Securities and Exchange Commission of Pakistan has approved and notified the adoption of International Accounting
Standard 39, 'Financial Instruments: Recognition and Measurement' (IAS 39) and International Accounting Standard 40,
'Investment Property' (IAS 40). The requirements of these standards have not been followed in the preparation of these
financial statements as the State Bank of Pakistan has deferred the implementation of these standards for banks in
Pakistan till further instructions. However, investments have been classified and valued in accordance with the requirements
of various circulars issued by the State Bank of Pakistan.
Financial statements and notes
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. One permissible form of trade related
mode of financing comprises of purchase of goods by the Bank from its 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
the appropriate portion of mark-up thereon.
26
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2.3
Basis of measurement
These financial statements have been prepared under the historical cost convention, except that certain available for
sale, trading and derivative financial instruments have been measured at fair value, whereas certain fixed assets are
stated at revalued amounts less accumulated depreciation and accumulated impairment losses, where applicable.
2.4
Use of estimates and judgments
The preparation of financial statements in conformity with approved accounting standards requires management to make
judgments, estimates and assumptions that effect the application of accounting policies and reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying 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 the revision and future periods if the revision affects
both current and future periods.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognised in the financial statements are described in the
following:
-
2.5
Note 8.3
Note 9 & 10
Note 10.2
Note 11
Note 21.6
Note 29
Note 33
Provision against non-performing advances
Valuation and depreciation / amortisation rates for fixed / intangible assets
Goodwill impairment testing
Deferred taxation
Derivative instruments
Income taxes
Employees' retirement defined benefit plans
Functional and presentation currency
These financial statements are presented in Pakistan Rupees, which is the Bank’s functional currency. Except as indicated,
financial information presented in Pakistan Rupees has been rounded to the nearest thousand.
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies
have been applied consistently to all years presented.
3.1
Business acquisitions
Acquisitions from entities under common control
Business combinations arising from transfers of interests in entities that are under the control of the shareholder that
controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period
presented. For this purpose comparatives are restated, where required. The assets and liabilities acquired are recognised
at the carrying amounts recognised previously in the combining entity's financial statements.
Other acquisitions
Other business combinations are accounted for using the acquisition method. For acquisition prior to 1 January 2009,
the cost of acquisition is measured as the fair value of the asset given, equity instruments issued and the liabilities
incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identified assets acquired
are fair valued at the acquisition date, irrespective of the extent of any non-controlling interest. The excess of cost of
acquisition over the fair value of identifiable net assets acquired is recorded as goodwill. Subsequently, any recoveries
or losses to fair value of net assets are taken to profit and loss account and disclosed in note 25 to these financial
statements.
27
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
3.2
Cash and cash equivalents
For the purposes of cash flow statement, cash and cash equivalents comprise of cash and balances with treasury banks
and balances with other banks.
3.3
Investments
The Bank classifies its investments as follows:
a) Held for trading
These are securities, which are acquired with the intention to trade by taking advantage of short term market / interest
rate movements and are carried at market value. The surplus / deficit arising as a result of revaluation at market value
is recognised in the profit and loss account. These securities are to be sold within 90 days from the date of their
classification as 'Held for trading' under normal circumstances, in accordance with the requirements specified by BSD
Circular 10 dated 13 July 2004 issued by the State Bank of Pakistan.
b) Held to maturity
These are securities with fixed or determinable payments and fixed maturity that are held with the intention and ability
to hold to maturity. These are carried at amortised cost.
c) Available for sale
These are investments that do not fall under the held for trading or held to maturity categories and are carried at market
value. The surplus / deficit arising as a result of revaluation at market value is kept in a separate account below equity.
d) Subsidiaries
Investments in subsidiaries are carried at cost less impairment in value, if any.
All 'regular way' purchases and sales of investments are recognised on the trade date i.e. the date that the bank commits
to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery
of assets within the time frame generally established by regulation or convention in the market place.
Sale and repurchase agreements
Securities sold subject to repurchase agreements ('repos') remain on the balance sheet; the counterparty liability is
included in borrowings from financial institutions. Securities purchased under agreements to resell ('reverse repos') are
recorded as lendings to financial institutions. The difference between sale and repurchase price is treated as interest /
mark-up / return and accrued over the life of the underlying agreement using the effective interest method.
3.5
Advances
Advances are stated net of provision against non-performing advances. Specific and general provisions are made based
on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan
from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate
of the amount of loss expected. The general provision is for the inherent risk of losses which, although not separately
identified, are known from experience to be present in any loan portfolio. Provision made / reversed during the year is
charged to the profit and loss account and accumulated provision is netted off against advances. Advances are writtenoff when there is no realistic prospect of recovery.
When the Bank is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to
ownership of an asset to the lessee, the arrangement is presented within loans and advances.
Financial statements and notes
3.4
28
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Murabaha financings are reflected as receivables at the sale price. Actual sale and purchase is not reflected as the goods
are purchased by the customer as agent of the Bank and all documents relating to purchase are in customer's name.
Funds disbursed under Murabaha financing arrangements for purchase of goods are recorded as "Advance Against
Murabaha".
In Diminishing Musharaka based financing, the Bank enters into a Musharaka based on Shirkat-ul-milk for financing an
agreed share of fixed asset (e.g. house, land, plant or machinery) with its customers and enters into a periodic rental
payment agreement for the utilization of the Bank's Musharaka share by the customer.
3.6
Operating fixed assets - Tangible
Owned
Operating fixed assets, other than land and buildings, are stated at cost less accumulated depreciation and accumulated
impairment losses thereon. Cost includes expenditure that is directly attributable to the acquisition of fixed assets. Land
and buildings are stated at revalued amounts less accumulated depreciation.
Subsequent costs are included in the asset's carrying amount or are 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 repairs and maintenance expenditures are charged to profit and loss account
during the financial period in which they are incurred.
Land and buildings are revalued by independent professionally qualified valuer(s). Surplus arising on revaluation is
credited to the 'surplus on revaluation of fixed assets' account (net of deferred tax). Under the provisions of the Companies
Ordinance, 1984, deficit arising on revaluation of fixed assets is adjusted against the balance in the above-mentioned
surplus account. The revaluation is carried out with sufficient regularity to ensure that the carrying amount does not differ
materially from that which would have been determined using fair value at the balance sheet date.
Accumulated depreciation on owned buildings, at the date of revaluation, is eliminated against the gross carrying amount
of buildings. The net amount is then restated to the revalued amount.
Surplus on revaluation of fixed assets (net of deferred tax) is transferred to unappropriated profit to the extent of incremental
depreciation charged on related assets.
Land is not depreciated. Depreciation on all other fixed assets is calculated using the straight line method to allocate
their depreciable cost or revalued amount to their residual values over their estimated useful lives.
The residual values and useful lives of fixed assets are reviewed, and adjusted (if appropriate) at each balance sheet
date.
Gains and losses on disposal of fixed assets are included in profit and loss account currently, except that the related
surplus on revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profits.
Leased
Fixed assets held under finance lease are stated at the lower of fair value of asset and present value of minimum lease
payments at the inception of lease, less accumulated depreciation. Financial charges are allocated over the period of
lease term so as to provide a constant periodic rate of financial charge on the outstanding liability. Depreciation is charged
on the basis similar to owned assets.
3.7
Intangible assets
Goodwill
Goodwill represents the excess of cost of an acquisition over the fair value of the share of net identifiable assets acquired
at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment.
29
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Computer software
Acquired computer software licenses are capitalised on the basis of costs incurred to acquire and bring to use the specific
software. These costs are amortised over their expected useful lives using the straight line method.
Acquired intangibles in business combination
Acquired intangibles in business combination that have finite lives are amortised over their economic useful life based
on the manner that benefits of the relevant assets are consumed.
3.8
Impairment of non-financial assets
The carrying amounts of the Bank’s non-financial assets, other than deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated pre-tax future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in
prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
3.9
Staff retirement benefits
Defined benefit plan
The Bank operates approved funded pension and gratuity schemes for all its non-management employees, and a
management pension scheme only for its existing pensioners.
For defined benefit plans, the net defined benefit liability /asset recognised in the balance sheet is the deficit or surplus,
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. The deficit or surplus is:
(a) the present value of the defined benefit obligation; less
The present value of defined benefit obligation is calculated annually by independent actuaries by discounting the
estimated future cash flows using an interest rate equal to the yield on high-quality corporate bonds.
Actuarial gains or losses that arise are recognised in other comprehensive income in the period they arise. Service cost
and Net interest on net defined benefit liability / (asset) are also recognised in profit and loss account.
Defined contribution plan
The Bank also operates a defined contribution gratuity scheme for all its management staff, and a provident fund scheme
for all its permanent staff, contributing at 8.33 percent and 10 percent of basic salary respectively.
3.10
Foreign currency transactions
Transactions in foreign currencies are translated to Pakistan Rupees at exchange rates prevailing at the date of transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to Pakistan Rupees
at the exchange rate prevailing at that reporting date. Foreign currency differences arising on retranslation are recognised
in profit or loss.
3.11
Taxation
Income tax expense comprises of 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 or in other comprehensive income.
Financial statements and notes
(b) the fair value of plan assets (if any).
30
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Current tax
Current tax is the expected tax payable on the taxable income for the year (using tax rates enacted or substantively
enacted at the balance sheet date), and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is provided for using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is not recognised on temporary differences relating to: (i) the initial recognition of goodwill; (ii) the initial recognition
of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable
profit; and (iii) differences relating to investments in subsidiaries to the extent that they probably will not reverse in the
foreseeable future.
Deferred tax is measured at tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by 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. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
3.12
Revenue recognition
Mark-up / return on advances and investments is recognised on an accrual basis using the effective interest rate method.
The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the
expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the
financial asset or liability.
Mark-up recoverable on classified loans, advances and investments is recognised on a receipt basis in accordance with
the requirements of Prudential Regulations issued by the State Bank of Pakistan. Mark-up on rescheduled / restructured
loans, advances and investments is also recognised in accordance with the requirements of these Prudential Regulations.
Where debt securities are purchased at a premium or discount, those premiums / discounts are amortized through profit
and loss account over the remaining maturity, using the Effective Yield Method.
Fees and commission income are generally recognised on an accrual basis when the service has been provided. Fees
and commission which in substance amount to an additional interest charge, are recognised over the life of the underlying
transaction on a level yield basis.
Dividend income is recognised when the right to receive income is established.
The cost from award credits for loyalty points earned on use of various products of the Bank is measured by reference
to their fair value and is recognised when award credits are redeemed.
Murabaha transactions are reflected as receivable at sale price. Actual sale and purchase are not reflected as the goods
are purchased by the customer as agent of the Bank. Profit on the sales revenue not due for payment is deferred by
recording a credit to 'Deferred Murabaha Income' account.
3.13
Derivative financial instruments
Derivative financial instruments are initially recognised at fair value and are subsequently remeasured at fair value. All
derivative financial instruments are carried as assets when fair value is positive and liabilities when fair value is negative.
Any change in the fair value of derivative financial instruments is taken to profit and loss account.
3.14
Provisions
Provisions for restructuring costs and legal claims are recognised when: (i) the Bank has a present legal or constructive
obligation as a result of past events; (ii) it is more likely than not that an outflow of resources will be required to settle
the obligation; and (iii) the amount has been reliably estimated.
31
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
3.15
Fiduciary activities
The Bank commonly acts in fiduciary capacities that result in the holding or placing of assets on behalf of individuals,
trusts, retirement benefit plans and other institutions. These assets and income arising thereon are excluded from these
financial statements, as they are not assets of the Bank.
3.16
Segment reporting
A segment is a distinguishable component of the Bank that is engaged either in providing products 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. The Bank’s primary format for segment
reporting is based on business segments. A brief description of the products and services offered by different segments
of the Bank is given in note 37 to these financial statements.
3.17
Offsetting
Financial assets and liabilities are set off and the net amount presented in the balance sheet when, and only when, the
Bank has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
3.18
Subordinated liabilities
Subordinated liabilities are initially measured at fair value plus transaction costs, and subsequently measured at their
amortised cost using the effective interest method.
3.19
Non-current assets and disposal groups held for sale
Non-current assets and disposal groups comprising of assets and liabilities that are expected to be recovered primarily
through sale rather than continuing use are classified as held for sale. Immediately before being classified as held for
sale, the assets and components of disposal group are remeasured in accordance with the Bank's accounting policies.
Thereafter, the assets and disposal group are measured at the lower of their carrying values and fair values less cost
to sell.
3.20
Share-based compensation
3.21
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. Acceptances are accounted for
as on-balance sheet transactions.
3.22
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 period / 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. There were no convertible dilutive potential ordinary shares in issue at 31 December 2013.
Financial statements and notes
The Group operates various share-based compensation plans which are accounted for as equity settled share based
payment transactions, regardless of inter group repayment arrangements. The cost for such share based payment
transactions is determined by reference to the fair value of options at the grant date. The fair value is determined based
on the market price or using an appropriate valuation technique. The cost is charged to profit and loss account and
credited to equity as a contribution from parent. The liability for these transactions which is based on the fair value of
these options at the settlement date is settled through debiting equity.
32
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
3.23
Dividend and appropriation to reserves
Dividend and appropriation to reserves, except appropriation which are required by law after the balance sheet date, are
recognised as liability in the Bank's financial statements in the year in which these are approved.
3.24
3.25
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 using effective
mark-up / interest rate method.
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 and other institutions, investments, advances, certain receivables, bills payable, borrowings
from financial institutions, deposit accounts 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.
3.26
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 reasonable
certainty exists for the Bank to settle the obligation. Charge to profit and loss account is stated net of expected recoveries.
3.27
New standards and interpretations not yet adopted
The following standards, amendments and interpretations of approved accounting standards will be effective for accounting
periods beginning on or after 1 January 2014:
•
IFRIC 21- Levies ‘an Interpretation on the accounting for levies imposed by governments’. IFRIC 21 is an interpretation
of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. IAS 37 sets out criteria for the recognition of a
liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (known
as an obligating event). The Interpretation clarifies that the obligating event that gives rise to a liability to pay a levy
is the activity described in the relevant legislation that triggers the payment of the levy.
•
Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32). The amendments address inconsistencies
in current practice when applying the offsetting criteria in IAS 32. Financial Instruments: Presentation. The amendments
clarify the meaning of ‘currently has a legally enforceable right of set-off’; and that some gross settlement systems
may be considered equivalent to net settlement.
•
Amendment to IAS 36 “Impairment of Assets” Recoverable Amount Disclosures for Non-Financial Assets. These
narrow-scope amendments to IAS 36 Impairment of Assets address the disclosure of information about the recoverable
amount of impaired assets if that amount is based on fair value less costs of disposal.
•
Amendments to IAS 19 “Employee Benefits” Employee contributions – a practical approach. The practical expedient
addresses an issue that arose when amendments were made in 2011 to the previous pension accounting requirements.
The amendments introduce a relief that will reduce the complexity and burden of accounting for certain contributions
from employees or third parties. The amendments are relevant only to defined benefit plans1 that involve contributions
from employees or third parties meeting certain criteria.
•
Annual Improvements 2010-2012 and 2011-2013 cycles (most amendments will apply prospectively for annual period
beginning on or after 1 July 2014). The new cycle of improvements contain amendments to the following standards:
-
IFRS 2 ‘Share-based Payment’. IFRS 2 has been amended to clarify the definition of ‘vesting condition’ by separately
defining ‘performance condition’ and ‘service condition’. The amendment also clarifies both: how to distinguish between
a market condition ’. The amendment also clarifies both: how to distinguish between a market condition and a nonmarket performance condition and the basis on which a performance condition can be differentiated from a vesting
condition.
33
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
-
IFRS 3 ‘Business Combinations’. These amendments clarify the classification and measurement of contingent
consideration in a business combination. Further IFRS 3 has also been amended to clarify that the standard does
not apply to the accounting for the formation of all types of joint arrangements including joint operations in the financial
statements of the joint arrangement themselves.
-
IFRS 8 ‘Operating Segments’ has been amended to explicitly require the disclosure of judgments made by management
in applying the aggregation criteria. In addition this amendment clarifies that a reconciliation of the total of the reportable
segment’s assets to the entity assets is required only if this information is regularly provided to the entity’s chief
operating decision maker. This change aligns the disclosure requirements with those for segment liabilities.
-
Amendments to IAS 16’Property, plant and equipment’ and IAS 38 ‘Intangible Assets’. The amendments clarify the
requirements of the revaluation model in IAS 16 and IAS 38, recognizing that the restatement of accumulated
depreciation (amortization) is not always proportionate to the change in the gross carrying amount of the asset.
-
IAS 24 ‘Related Party Disclosure’. The definition of related party is extended to include a management entity that
provides key management personnel services to the reporting entity, either directly or through a group entity.
-
IAS 40 ‘Investment Property’. IAS 40 has been amended to clarify that an entity should: assess whether an acquired
property is an investment property under IAS 40 and perform a separate assessment under IFRS 3 to determine
whether the acquisition of the investment property constitutes a business combination.
Note
4
2013
2012
-------- (Rupees in '000) ---------
CASH AND BALANCES WITH TREASURY BANKS
In hand
- Local currency
- Foreign currencies
4.1
2,640,598
2,934,902
12,136,164
1,120,999
12,693,648
1,362,417
3,305,342
9,200,051
89,112
2,742,536
7,666,714
94,268
1,545,377
32,331,083
1,352,786
31,487,869
215
286
1,451,343
1,451,558
2,362,858
2,363,144
4.1 This includes National Prize Bonds of Rs. 1.653 million (2012: Rs. 4.699 million).
5
BALANCES WITH OTHER BANKS
In Pakistan
- In current accounts
Outside Pakistan
- In current accounts
5.1
5.1 This includes balances of Rs.1,399.406 million (2012: Rs.2,310.442 million) held with other branches and subsidiaries of Standard
Chartered Group outside Pakistan.
Financial statements and notes
With State Bank of Pakistan in:
- Local currency current account
- Local currency current account-Islamic Banking
- Foreign currency deposit account
Cash reserve account (5% of FE 25)
Special cash reserve account (15% of FE 25)
Local US Dollar collection account
With National Bank of Pakistan in:
- Local currency current account
2,547,603
2,386,435
34
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Note
6
LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings
Placements
6.1
2013
2012
-------- (Rupees in '000) --------22,158,840
22,158,840
500,000
19,345,269
19,845,269
6.1 This represents placements with other branches and subsidiaries of Standard Chartered Group outside Pakistan at mark-up rates
ranging from 0.1 percent to 1.2 percent per annum (2012: 0.1 percent to 0.55 percent per annum), and are due to mature by March
2014.
2013
2012
-------- (Rupees in '000) ---------
6.2 Particulars of lending
In local currency
In foreign currencies
22,158,840
22,158,840
500,000
19,345,269
19,845,269
6.3 Securities held as collateral against lendings to financial institutions
Held by
bank
2013
Further
given as
collateral
Total
Held by
bank
2012
Further
given as
collateral
Total
------------------------------------ (Rupees in '000) ---------------------------------Market Treasury Bills
-
-
-
-
-
-
Pakistan Investment Bonds
-
-
-
-
-
-
-
-
-
-
-
-
6.4.1 The market value of securities held as collateral against lendings to financial institutions amounted to Rs. Nil (2012:Rs. Nil
million).
35
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
7
2013
INVESTMENT
Note
7.1
Investments by type
Held by
bank
2012
Given as
collateral
Total
Held by
bank
Given as
collateral
Total
------------------------------------ (Rupees in '000) ----------------------------------
Held for trading securities
Market Treasury Bills
242,549
-
242,549
3,152,257
-
3,152,257
Pakistan Investment Bonds
841,046
-
841,046
653,528
-
653,528
31,122
-
31,122
13,259
-
13,259
-
102,670,705
93,872,979
5,963,886
99,836,865
31,168,109
17,674,933
18,845
17,693,778
Sukuk Bonds
Available for sale securities
Market Treasury Bills
7.6
102,670,705
Pakistan Investment Bonds
7.6
31,149,469
18,640
Ordinary shares of listed companies
7.7
662,061
-
662,061
662,061
-
662,061
Term Finance Certificates -unlisted
7.10
285,025
-
285,025
285,025
-
285,025
Ordinary shares of unlisted companies
7.9
3,899
-
3,899
3,899
-
3,899
10,716,277
-
10,716,277
8,764,965
-
8,764,965
Sukuk and Ijarah Bonds - unlisted
Subsidiaries
7.6 & 7.10
7.12
Standard Chartered Services of
Pakistan (Private) Limited
44,500
-
44,500
44,500
-
44,500
Standard Chartered Modaraba
42,000
-
42,000
42,000
-
42,000
Standard Chartered Leasing Limited
730,589
Investments at cost
147,419,242
18,640
730,589
730,589
147,437,882
125,899,995
5,982,731
730,589
131,882,726
Provision for diminution in
the value of investments
7.3
Investments (net of provisions)
(860,157)
146,559,085
18,640
(860,157)
(575,324)
146,577,725
125,324,671
10,978
15,850
5,982,731
(575,324)
131,307,402
Surplus on revaluation of
held for trading securities - net
7.11
10,978
-
-
15,850
Surplus / (Deficit) on revaluation of
available for sale securities - net
Total Investments - net
20.2
97,859
154
98,013
653,693
(82)
653,611
146,667,922
18,794
146,686,716
125,994,214
5,982,649
131,976,863
Financial statements and notes
36
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
7.2
7.3
Investments by segment
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
GoP Ijarah Sukuk Bonds
Fully paid up ordinary shares
Listed companies
Unlisted companies
Investment in subsidiaries
Standard Chartered Services of Pakistan (Private) Limited
Standard Chartered Modaraba
Standard Chartered Leasing Limited
Bonds and Term Finance Certificates - Unlisted
Term Finance Certificates
Sukuk and Ijarah Bonds
Other Investments (Mutual Funds)
Total investment at cost
Less: Provision for diminution in the value of investments
Investment (net of provisions)
Surplus on revaluation of held for trading securities - net
Surplus on revaluation of available for sale securities - net
Total Investments - net
Note
20.2
2013
2012
-------- (Rupees in '000) --------102,913,254
32,009,155
9,222,399
102,989,122
18,347,306
7,203,224
662,061
3,899
662,061
3,899
44,500
42,000
730,589
44,500
42,000
730,589
285,025
1,525,000
147,437,882
285,025
1,575,000
131,882,726
(860,157)
146,577,725
10,978
98,013
146,686,716
(575,324)
131,307,402
15,850
653,611
131,976,863
575,324
285,025
(192)
284,833
860,157
133,157
442,167
442,167
575,324
444,316
285,025
130,816
860,157
444,508
130,816
575,324
Particulars of provision for diminution in the value of investments
Opening balance
Charge for the year
Reversals
Net charge
Closing Balance
7.3.1
7.3.1 The details of provision held against investments are as follows:
Ordinary shares / units - available for sale
Term Finance Certificates -unlisted
Standard Chartered Leasing Limited - Subsidiary
7.10
7.12
7.4
Investments include securities having book value of Rs. 18.640 million (2012: Rs. 18.845 million) pledged with the State
Bank of Pakistan as security to facilitate T.T. discounting facility to the Bank, including an amount earmarked against the
facilities allocated to branches now in Bangladesh.
7.5
Market Treasury Bills and Pakistan Investment Bonds are eligible for discounting with the State Bank of Pakistan.
37
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
Note
Quality of 'Available for Sale' securities
7.6
Rating
2012
Market
value
Cost
Rating
(Rupees in '000)
Federal Government Securities
(Rupees in '000)
Market Treasury Bills
Unrated
102,670,705
102,551,594
Unrated
99,836,865
100,344,215
Pakistan Investment Bonds
Unrated
31,168,109
31,284,265
Unrated
17,693,778
17,918,680
Unrated
9,191,277
9,296,290
Unrated
7,189,965
7,115,437
143,030,091
143,132,149
124,720,608
125,378,332
GoP Ijarah Sukuk Bonds
7.10.3
2013
Rating
7.7
Market
value
Cost
Particulars of shares held - listed
2013
2012
(Number of shares)
2012
Market
value
Cost
Rating
(Rupees in '000)
Market
value
Cost
(Rupees in '000)
-
7,500
Sakrand Sugar Mills Limited
Unrated
-
-
Unrated
-
36
-
2,800
Bawany Sugar Mills Limited
Unrated
-
-
Unrated
-
30
-
11,000
Dadabhoy Cement Limited
Unrated
-
-
Unrated
-
28
-
4,800
Khurshid Spinning Mills
Unrated
-
-
Unrated
-
-
-
3,500
Taj Textile Mills Limited
Unrated
-
-
Unrated
-
-
-
1
Kohinoor Textile Mills Limited
Unrated
-
-
Unrated
-
-
-
2
Sind Provincial Cooperative Bank
Unrated
-
-
Unrated
-
-
-
1,646
AA+ / A1+
-
-
AA+ / A1+
-
121
18,916,023
18,916,023
Allied Bank Limited
Agritech Limited
D
662,061
662,061
662,061
662,061
Provision for diminution in the value - note 7.3
-
D
662,061
662,061
662,061
662,276
(441,311)
662,061
-
220,750
662,061
(441,400)
220,876
All shares are ordinary shares of Rs. 10 each except otherwise mentioned.
2013
7.8
Particulars of units / certificates held in mutual funds
Rating
-
Cost
Rating
(Rupees in '000)
13,788
National Investment (Unit)Trust
AM 2-
Market
value
Cost
(Rupees in '000)
-
-
-
458
-
-
AM2 -
-
458
-
-
-
(103)
-
-
-
355
Provision for diminution in the
value - note 7.3.1
7.9
Particulars of shares held - unlisted
2013
2012
(Number of shares)
573,769
2013
2012
Rating
573,769
2013
2012
(Rupees in '000)
Pakistan Export Finance Guarantee
Agency Limited
Unrated
Unrated
Unrated
Unrated
3,004
3,004
Chairman : Mr. S. M. Zaeem
8
8
Society for Worldwide Interbank
Fund Transfer
Provision for diminution in the value - note 7.3.1
895
895
3,899
3,899
(3,004)
(3,004)
895
895
Financial statements and notes
2013
2012
(Number of shares)
2012
Market
value
38
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
7.10 Bonds and Term Finance Certificates - unlisted
2012
(Rupees in '000)
Term Finance Certificates of Rs. 5,000 each
Agritech Limited
147,000
Azgard Nine Limited
138,025
138,025
285,025
285,025
Provision for diminution in the value - note 7.3.1
(285,025)
-
2013
Sukuk and Ijarah Bonds of Rs. 5,000 each
147,000
Note
Rating
Cost
285,025
2012
Market
value
Rating
(Rupees in '000)
Cost
Market
value
(Rupees in '000)
Wapda Sukuk Bonds
7.10.1
Unrated
200,000
195,955
Unrated
250,000
245,215
Pakistan International Airlines (PIA) Sukuk Bonds
7.10.2
Unrated
1,325,000
1,325,000
Unrated
1,325,000
1,325,000
1,525,000
1,520,955
1,575,000
1,570,215
7.10.1 Wapda Sukuk Bonds carry mark-up rates 0.25% below 6 months KIBOR. The principal and profit is payable semi-annually with maturity in July 2017.
7.10.2 PIA Sukuk bonds carry mark-up rates 1.75% above 6 months KIBOR. The principal and profit is payable semi-annually with maturity in October 2014.
7.10.3 GoP Ijarah Sukuk Bonds carry mark-up rates of 0.30% below weighted average yield of 6 months treasury bills. The profit is payable semi-annually with principal redemption
at maturity falling due between May 2014 and July 2017.
7.11 Unrealized gain / (loss) on revaluation of investments classified as held for trading
Note
2013
2012
(Rupees in '000)
Market Treasury Bills
1,185
13,887
Pakistan Investment Bonds
9,422
1,792
GoP Ijarah Sukuk Bonds
371
171
10,978
15,850
44,500
44,500
7.12 Investment in Subsidiaries
2013
2012
(Number of shares)
4,450,000
4,450,000
Standard Chartered Services of Pakistan (Pvt)
Limited - 100% owned
4,538,353
4,538,353
84,579,276
84,579,276
Standard Chartered Modaraba - Listed 20% owned
Standard Chartered Leasing Limited - Listed
42,000
42,000
730,589
730,589
(130,816)
(130,816)
686,273
686,273
86.45% owned
Provision for diminution in the value
7.12.4 & 7.3.1
7.12.1 The above investments in subsidiaries are strategic investments of the Bank.
7.12.2 Standard Chartered Services of Pakistan (Private) Limited (100% owned by the Bank) exercises control over Standard Chartered
Modaraba as its management company and also has a direct economic interest of 10 percent. Therefore, Standard Chartered Modarba
is considered a subsidiary of the Bank.
7.12.3 The market value of investments in listed subsidiaries, namely, Standard Chartered Modaraba and Standard Chartered Leasing Limited
at 31 December 2013 amounted to Rs 77.515 million and Rs 592.055 million respectively (2012: Rs 52.418 million and 503.247 million
respectively).
7.12.4 The Bank periodically reviews its investment in Standard Chartered Leasing Limited (SCLL) for evidence of any impairment. The
recoverable amount of investment in SCLL is determined with reference to its value in use. The Bank uses present value techniques
and financial projections of SCLL to calculate its value in use. The recoverable amount as at 31 December 2013 is estimated to be
above the carrying value of Rs. 599.773 million. Based on these calculations, the Bank considers that no additional impairment loss
has arisen during the year. Hence, the Bank continues to hold an accumulated impairment loss of Rs.130.816 million.
39
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
8
ADVANCES
Note
2013
2012
-------- (Rupees in '000) ---------
Loans, cash credits, running finances, etc.
- In Pakistan
- Outside Pakistan
134,809,794
134,809,794
Net investment in Finance Lease
- In Pakistan
- Outside Pakistan
-
Bills discounted and purchased (excluding treasury bills)
- Payable in Pakistan
- Payable outside Pakistan
Advances - gross
Provision for non-performing advances
Advances - net of provision
8.1
8.3
-
15,873,794
6,890,046
22,763,840
157,573,634
(22,078,602)
135,495,032
8,659,942
7,353,551
16,013,493
159,646,067
(24,461,922)
135,184,145
145,263,061
12,310,573
157,573,634
115,783,098
41,790,536
157,573,634
147,709,882
11,936,185
159,646,067
105,078,832
54,567,235
159,646,067
Particulars of advances - gross
8.1.1 In local currency
In foreign currencies
8.1.2 Short term (for upto one year)
Long term (for over one year)
8.2
143,632,574
143,632,574
Advances include Rs. 24,655.364 million (31 December 2012: Rs. 27,124.953 million) which have been placed under
non-performing status as detailed below:
2013
Domestic
Category of classification
Overseas
Provision Required
Total
Domestic
Overseas
Provision Held
Total
Domestic
Overseas
Total
------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
Substandard
Doubtful
Loss
635,748
2,352,816
21,666,800
24,655,364
-
635,748
2,352,816
21,666,800
24,655,364
153,847
1,147,027
20,217,266
21,518,140
-
153,847
1,147,027
20,217,266
21,518,140
153,847
1,147,027
20,217,266
21,518,140
-
153,847
1,147,027
20,217,266
21,518,140
General provision
24,655,364
-
24,655,364
560,462
22,078,602
-
560,462
22,078,602
560,462
22,078,602
-
560,462
22,078,602
2012
Classified Advances
Domestic
Category of classification
Overseas
Provision Required
Total
Domestic
Overseas
Provision Held
Total
Domestic
Overseas
Total
------------------------------------------------------------------- (Rupees in '000) ---------------------------------------------------------------------------
Substandard
Doubtful
Loss
841,325
2,569,007
23,714,621
27,124,953
-
841,325
2,569,007
23,714,621
27,124,953
153,382
1,265,022
22,472,866
23,891,270
-
153,382
1,265,022
22,472,866
23,891,270
153,382
1,265,022
22,472,866
23,891,270
-
153,382
1,265,022
22,472,866
23,891,270
General provision
27,124,953
-
27,124,953
570,652
24,461,922
-
570,652
24,461,922
570,652
24,461,922
-
570,652
24,461,922
Financial statements and notes
Classified Advances
40
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
8.2.1
At 31 December 2013, the provision requirement has been reduced by Rs. 1,462.377 million (31 December 2012: Rs. 1,294.899 million)
being benefit of Forced Sale Value (FSV) of commercial, residential and industrial properties (land and building only) held as collateral,
in accordance with the State Bank of Pakistan Prudential Regulations (PR) and SBP Circular 10 dated 21 October 2011. Increase in
accumulated profits amounting to Rs. 950.545 million due to the said FSV benefit is not available for distribution of cash and stock
dividend.
8.3
Particulars of provision against non-performing advances
Specific
2013
General
2012
Total
Specific
General
Total
------------------------------------ (Rupees in '000) ----------------------------------
8.4
Opening balance
Charge for the year
Reversals
23,891,270
994,308
(2,290,543)
(1,296,235)
570,652
68,783
(78,973)
(10,190)
24,461,922
1,063,091
(2,369,516)
(1,306,425)
21,376,320
4,781,031
(1,649,519)
3,131,512
613,097
36,313
(78,758)
(42,445)
21,989,417
4,817,344
(1,728,277)
3,089,067
Amounts written off
Other movements
Closing balance
(862,652)
(214,243)
21,518,140
560,462
(862,652)
(214,243)
22,078,602
(696,081)
79,519
23,891,270
570,652
(696,081)
79,519
24,461,922
2013
2012
-------- (Rupees in '000) ---------
Particulars of write offs
8.4.1 Against provisions
Charged and written off during the year
862,652
239,868
1,102,520
696,081
325,188
1,021,269
8.4.2 Write-offs of Rs. 500,000 and above
Write-offs of below Rs. 500,000
604,059
498,461
1,102,520
389,279
631,990
1,021,269
8.5
Details of loans written-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 2013 is given in Annexure 1.
8.6
Particulars of loans and advances to directors, associated companies, etc.
(i)
(ii)
(iii)
9
Debts due by directors, executives or officers of the bank or any of
them either severally or jointly with any other persons
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
2013
2012
-------- (Rupees in '000) --------1,652,935
(457,492)
1,195,443
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
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
-
Debts due by subsidiary companies, controlled firms, managed modarabas and
other related parties
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
2,226,798
(573,863)
1,652,935
-
736,085
8,185,390
(8,478,567)
442,908
191,300
13,615,430
(13,070,645)
736,085
56,213
6,099,009
6,155,222
121,779
6,249,434
6,371,213
38,535
17,678
56,213
5,636
113,624
2,519
121,779
OPERATING FIXED ASSETS
Capital work-in-progress
Property and equipment
9.1
Note
Capital work-in-progress
Civil works
Advance payment towards office equipments
Consultants' fee and other charges
9.1
9.2
41
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
9.2
Property and equipment
2013
Freehold
Land
Cost / Valuations
At 1 January 2013
Additions during the year
Transfers / write offs
Deletions
At 31 December 2013
Leasehold
Land
Buildings on Buildings on
Leased
Freehold
Leasehold
hold
improvements
land
land
Furniture,
Fixtures and
Office
Equipment
Vehicles
Total
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------571,030
571,030
3,753,113
(146,685)
3,606,428
261,731
19,800
(1,123)
280,408
855,624
76,792
(1,528)
(33,631)
897,257
1,256,790
82,881
(132,476)
(185)
1207,010
2,703,031
392,840
(224,241)
(138,790)
2,732,840
98,617
2,822
(3,584)
97,855
9,499,936
575,135
(359,368)
(322,875)
9,392,828
66,759
22,642
(664)
88,737
230,932
80,218
(876)
(10,562)
299,712
693,840
74,961
(75,391)
(157)
693,253
2,215,782
292,283
(222,079)
(136,742)
2,149,244
43,189
23,268
(3,584)
62,873
3,250,502
493,372
(299,010)
(151,045)
3,293,819
191,671
597,545
513,757
583,596
34,982
6,099,009
6.67%
6.67%
Accumulated Depreciation
At 1 January 2013
Charge for the year
Transfers / write offs
Deletions
At 31 December 2013
Net book value
Rate of depreciation
571,030
-
3,606,428
-
6.67%-10% 14.28% - 33.33%
33.33%
2012
Freehold
Land
Cost / Valuations
At 1 January 2012
Additions during the year
Transfers / write offs
Deletions
At 31 December 2012
Leasehold
Land
Buildings on Buildings on
Leased
Freehold
Leasehold
hold
improvements
land
land
Furniture,
Fixtures and
Office
Equipment
Vehicles
Total
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------571,030
571,030
3,753,113
3,753,113
261,663
68
261,731
832,728
22,896
855,624
1,280,649
80,926
(104,723)
(62)
1,256,790
3,430,902
273,678
(934,046)
(67,503)
2,703,031
65,877 10,195,962
65,365
442,933
(1,038,769)
(32,625)
(100,190)
98,617
9,499,936
44,394
22,365
66,759
152,707
78,225
230,932
641,392
96,406
(43,906)
(52)
693,840
2,943,763
273,439
(934,230)
(67,190)
2,215,782
60,987
14,814
(32,612)
43,189
3,843,243
485,249
(978,136)
(99,854)
3,250,502
194,972
624,692
562,950
487,249
55,428
6,249,434
6.67%
6.67%
Accumulated Depreciation
Net book value
Rate of depreciation
9.3
571,030
-
3,753,113
-
6.67%-10% 14.28% - 33.33%
33.33%
The Bank's owned land and buildings were revalued by an independent accredited professional valuer, Iqbal A. Nanjee & Co. (Private) Limited. The valuation performed
by the valuer was based on active market prices, adjusted for any difference in the nature, location or condition of the specific land and building. The date of revaluation
was 31 December 2009. The revaluation resulted in a net surplus of Rs. 3,599.739 million over the book value. A similar valuation was carried out last year and no material
differences in market value (from the carrying value) were found.
If the owned land and buildings were measured using the cost model, the carrying amounts would have been as follows:
2013
2012
-------- (Rupees in '000) --------Cost
Accumulated depreciation
Carrying amount
The movement in surplus on revaluation of fixed assets is given in note 20.1 to the financial statements.
2,359,114
(790,278)
1,568,836
2,291,371
(712,963)
1,578,408
Financial statements and notes
At 1 January 2012
Charge for the year
Transfers / write offs
Deletions
At 31 December 2012
42
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
9.4
As at 31 December 2013, the cost of fully depreciated fixed assets still in use amounted to Rs. 2,183.705 million (2012: Rs. 2,241.287
million).
9.5
Depreciation rates for furniture, fixtures and office equipment are as follows:
Furniture and fixtures
Printers
Other office equipment
Computer equipment
ATM machines
9.6
33.33
33.33
20.00
33.33
14.28
percent
percent
percent
percent
percent
Details of disposal of fixed assets whose original cost or book value exceeds Rs. 1 million or Rs 250,000, which ever is less, and
assets disposed of to the Chief Executive or to a director or to executives or to a shareholder holding not less than 10% of the voting
shares of the bank or to any related party, irrespective of value, are given below:
Cost
depreciation
Accumulated
value
Book
Proceeds
Sale
on Sale
Gain / (Loss)
Disposal
Mode of
of Purchaser
Particulars
----------------------------------------- (Rupees in '000) ----------------------------------------
Freehold Land
Building on freehold /
Leasehold land
146,685
-
146,685
308,379
161,694
Tender
World Food Program
World Food Program
Mr. Muhammad Riaz
M/S NCR Corporation
M/S NCR Corporation
M/S National Traders
M/S Tech-Solution Engineering &
Services
M/S National Traders
M/S National Traders
M/S National Traders
M/S Pakistan International
M/S National Traders
M/S National Traders
M/S Pakistan International SJ
General Trading
M/S National Traders
M/S Pakistan International
M/S Khan Auctioneers
M/S Pakistan International SJ
General Trading
M/S Muhammad Shahid Soomro
M/S Pakistan International SJ
General Trading
M/S National Traders
M/S National Traders
M/S Muhammad Shahid Soomro
M/S National Traders
M/S National Traders
M/S Farhan & Company
M/S Farhan & Company
M/S Pakistan International SJ
General Trading
M/S Paramount Traders
M/S National Traders
Mr. Chaudhry Adeel Masood
M/S Adamjee Insurance
Furniture, fixtures and
office equipment
------------- do --------------------------- do ---------------
24,991
8,640
39,034
18,766
9,059
6,940
7,322
3,240
37,083
18,766
9,059
6,940
17,669
5,400
1,951
-
6,373
5,000
2,119
784
588
1,651
(11,296)
(400)
168
784
588
1,651
Tender
Tender
Tender
Tender
Tender
Tender
------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do ---------------
5,239
4,810
3,888
3,709
3,686
3,018
2,802
5,239
4,784
3,888
3,709
3,674
3,018
2,802
26
12
-
692
565
404
394
506
429
374
692
539
404
394
494
429
374
Tender
Tender
Tender
Tender
Tender
Tender
Tender
------------- do --------------------------- do --------------------------- do --------------------------- do ---------------
2,753
2,581
2,455
2,413
2,753
2,581
2,455
2,403
10
152
264
366
125
152
264
366
115
Tender
Tender
Tender
Tender
------------- do --------------------------- do ---------------
2,355
2,205
2,355
2,205
-
184
220
184
220
Tender
Tender
------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do ---------------
2,125
2,102
2,015
1,616
1,512
1,388
1,382
1,154
2,125
2,102
2,015
1,616
1,492
1,388
1,382
1,154
20
-
218
236
206
206
217
310
365
221
218
236
206
206
197
310
365
221
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
------------- do --------------------------- do --------------Vehicle (Toyota Altis AKX-512)
Vehicle (Toyota Corolla LZY-1811)
1,108
1,008
1,309
1,227
1,108
1,008
1,309
1,227
-
192
131
652
900
192
131
652
900
Tender
Tender
Tender
Insurance claim
313,975
142,202
333,423
161,650
171,773
Items having book value of less than Rs. 250,000 and cost of less than Rs. 1,000,000:
Short leasehold property - cost
185
Furniture, fixtures and office
equipment
7,667
Vehicles
1,048
Total
322,875
157
28
63
35
7,638
1,048
151,045
29
171,830
1,120
720
335,326
1,091
720
163,496
43
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
10
INTANGIBLE ASSETS
2013
Goodwill
Core
deposits
intangible
Customer
relationships
intangible
Brand
names
Computer
Software
Total
----------------------------------------- (Rupees in '000) ------------------------------------------
Cost
At 1 January 2013
Additions during the year
At 31 December 2013
26,095,310
26,095,310
1,982,413
1,982,413
774,680
774,680
389,400
389,400
338,350
338,350
29,580,153
29,580,153
Amortised
At 1 January 2013
Charge for the year
At 31 December 2013
Net book value
26,095,310
1,982,413
1,982,413
-
738,559
13,183
751,742
22,938
246,798
38,933
285,731
103,669
338,350
338,350
-
3,306,120
52,116
3,358,236
26,221,917
Rate of amortisation
20%
2012
Goodwill
Cost
Core
deposits
intangible
Customer
relationships
intangible
Brand
names
Computer
Software
Total
----------------------------------------- (Rupees in '000) ------------------------------------------
At 1 January 2012
Additions during the year
At 31 December 2012
26,095,310
26,095,310
1,982,413
1,982,413
774,680
774,680
389,400
389,400
338,350
338,350
29,580,153
29,580,153
Amortised
At 1 January 2012
Charge for the year
At 31 December 2012
Net book value
26,095,310
1,924,272
58,141
1,982,413
-
720,780
17,779
738,559
36,121
207,865
38,933
246,798
142,602
314,665
23,685
338,350
-
3,167,582
138,538
3,306,120
26,274,033
Rate of amortisation
20%
As at 31 December 2013, the gross carrying amount of fully amortised intangible assets (computer software) still in use amounted to Rs. 338.350 million (2012:Rs. 338.350
million).
10.2
The recoverable amount for the purpose of assessing impairment on goodwill on acquisition of Union Bank Limited was based on value in use. The calculations are based
on the 2014 budget and forecasts for subsequent two years as approved by the management. These have then been extrapolated for a further period of 17 years using a
steady long term forecast GDP growth rate and a terminal value determined based on a long term earnings multiple. The cash flows are discounted using a pre-tax discount
rate which reflects the current market rate appropriate for the business. For the calculation as at 31 December 2013, the bank has used a long term forecast GDP growth
rate of 4.4 percent and a discount rate of 28.7 percent. The management believes that any reasonable possible changes to the key assumptions on which calculation of
recoverable amount is based, would not cause the carrying amount to exceed the recoverable amount.
Financial statements and notes
10.1
44
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
11
DEFERRED TAX ASSETS / (LIABILITIES)
The following are major deferred tax assets / (liabilities) recognised and movement thereon:
Note
2013
At 1
January
2013
(Charge) /
credit to profit
and loss
Debit/
(credit)
to equity/
other
comprehensive
income
At 31
December
2013
----------------------------------------- (Rupees in '000) ------------------------------------------
Available for sale investments
Provisions for loans and advances
Other assets
Fixed assets
Surplus on revaluation of fixed assets
Goodwill
Actuarial gains on retirement benefits
11.1
(228,528)
6,585,275
(79,291)
(263,031)
(29,154)
(4,439,830)
(21,897)
1,523,544
(1,007,941)
(7,531)
35,363
9,090
(874,985)
(1,846,004)
194,223
9,484
203,707
(34,305)
5,577,334
(86,822)
(227,668)
(20,064)
(5,314,815)
(12,413)
(118,753)
2012
At 1
January
2012
(Charge) /
credit to profit
and loss
Debit/
(credit)
to equity/
other
comprehensive
income
At 31
December
2012
----------------------------------------- (Rupees in '000) ------------------------------------------
Available for sale investments
Provisions for loans and advances
Other assets
Fixed assets
Surplus on revaluation of fixed assets
Goodwill
Actuarial gains on retirement benefits
11.1
121,599
6,602,645
(77,869)
(280,389)
(33,109)
(3,586,802)
(16,345)
2,729,730
(17,370)
(1,422)
17,358
3,955
(853,028)
(850,507)
(350,127)
(5,552)
(355,679)
(228,528)
6,585,275
(79,291)
(263,031)
(29,154)
(4,439,830)
(21,897)
1,523,544
For income year 2013, the Bank has recognised a net Deferred Tax Liability of Rs. 119 million. This liability is net of
deferred tax asset of Rs. 5,577 million recognised on Non-performing loans.
The Finance Act, 2010 amended the Seventh Schedule to the Income Tax Ordinance, 2001 whereby the limit for claiming
provisions for advances and off balance sheet items in respect of Consumer and SME advances has been enhanced
from 1% to 5% of gross Consumer and SME advances. In case of Corporate advances, the limit continues to be 1% of
gross Corporate advances.
The management carried out an exercise and based on that concluded that the Bank would achieve a deduction for
provisions in excess of the limits prescribed by the Income Tax Ordinance, 2001 in future years. Accordingly, deferred
tax asset of Rs. 1,337 million has been recognised on such provisions for income years 2009 upto 2013.
The Seventh Schedule has been further amended through Finance Act, 2010 by introducing transitional provisions,
whereby amounts provided for against irrecoverable or doubtful advances in tax year 2008 (income year 2007) and prior
years, would be allowed in the tax year in which these advances are actually written off.
The management considers that the amendment made vide Finance Act, 2009 in respect of provisions for bad debts
being allowed at 1% of total advances is applicable for tax year 2010 (income year 2009), whereas for tax year 2009
(income year 2008), the provision for bad debts would continue to be allowed under the Seventh Schedule at the time
of actual write-off.
The deferred tax asset recognized upto December 31, 2008 relating to provisions for advances and off balance sheet
items amounting to Rs. 4,240 million has been carried forward.
45
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
12
OTHER ASSETS
Income / mark-up accrued in local currency
Income / mark-up accrued in foreign currencies
Advances, deposits, advance rent and other prepayments
Receivable from defined benefit plans
Advance taxation (payments less provisions)
Branch adjustment account
Unrealized gain on forward foreign exchange contracts
Interest rate derivatives and currency options - positive fair value
Receivable from SBP / Government of Pakistan
Receivable from associated undertakings
Receivable from Standard Chartered Bank, Sri Lanka operations
Non-banking assets acquired in satisfaction of claims
Advances against future Murabaha
Commodities under Islamic finance
Advance Federal Excise Duty
Bank acceptances
Others
Less: Provision against other assets
Other Assets - net of provisions
Note
21.6.2
12.4
12.2
12.3
12.1
2013
2012
-------- (Rupees in '000) --------4,485,201
77,426
726,605
9,320,011
6,005
1,129,842
580,296
122,790
3,686
36,276
741,901
6,379,093
295,134
188,443
4,930,334
341,228
29,364,271
(426,357)
28,937,914
3,014,806
25,895
665,665
7,300
9,239,777
168,165
167,431
1,535,248
176,398
8,109
152,865
741,901
2,681,333
188,443
15,322,698
297,052
34,393,086
(547,149)
33,845,937
547,149
(120,792)
426,357
557,462
(10,313)
547,149
12.1 Provision against other assets
Opening balance
Reversal during the year
Closing balance
12.2 Based on the last valuation, the market value of non-banking assets acquired in satisfaction of claims amounted to Rs
433.400 million. Accordingly, the differential between carrying amount and market value was provided at the time of
valuation.
12.4 Consequent to Sale and Purchase Agreement (SPA) signed between Standard Chartered Bank, Sri Lanka (SCBSL) and
Standard Chartered Bank (Pakistan) Limited (SCBPL), the Sri Lanka branch operations of SCBPL were amalgamated
with SCBSL with effect from close of business on 10 October 2008. According to the terms of SPA, ‘unproductive debts’,
‘staff loans of SCBPL who are not retained by the purchaser’, 'their corresponding housing loans’ and ‘assets arising from
litigation which cannot be assigned’ are held in trust with SCBSL. The recoveries made (net of expenses) from such
assets are to taken to income from Sri Lanka branch operations, as disclosed in note 25 to these financial statements,
and consequently recorded as receivable. The Central Bank of SriLanka during the current year had allowed remittance
of major portion of the outstanding balance which has been received during the year.
13
BILLS PAYABLE
In Pakistan
Outside Pakistan
14
2013
2012
-------- (Rupees in '000) --------6,127,636
412,577
6,540,213
5,980,351
184,516
6,164,867
15,751,377
814,798
16,566,175
23,372,739
26,650
23,399,389
BORROWINGS
In Pakistan
Outside Pakistan
Financial statements and notes
12.3 Included in these acceptances is Rs Nil (2012:Rs 5.233 billion) which have been further discounted by the bank.
46
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
14.1 Particulars of borrowings with respect to currencies
Note
In local currency
In foreign currencies
2013
2012
-------- (Rupees in '000) --------15,751,377
814,798
16,566,175
23,372,739
26,650
23,399,389
13,945,205
1,796,279
3,370
15,744,854
14,450,505
5,963,886
2,418,056
10,938
22,843,385
821,321
16,566,175
525,000
31,004
23,399,389
14.2 Details of borrowings secured / unsecured
Secured
Borrowings from State Bank of Pakistan
under Export Refinance (ERF) scheme
Repurchase agreement borrowings (Repo)
State Bank of Pakistan - LTFF
State Bank of Pakistan - LTF - Export Oriented Projects
14.2.2
14.2.3
Unsecured
Call borrowings
Overdrawn nostro accounts
14.2.4
14.2.1
14.2.1 Mark-up on Export Refinance (ERF) from State Bank of Pakistan is charged at 6.83 percent to 8.4 percent (2012: 8.5
percent to 10 percent) per annum. ERF borrowings also include borrowings under Islamic Export Refinance scheme
amounting to Rs. 1,060 million (2012: Rs. 1,368 million). These borrowings are secured against demand promissory notes
executed by the Bank in favour of State Bank of Pakistan.
14.2.2 Mark-up on Long Term Finance Facility (LTFF) from State Bank of Pakistan carry mark up rates ranging from 7 percent
to 11 percent (2012: 7 percent to 11 percent) per annum. These loans are secured against promissory notes executed
by the Bank in favour of State Bank of Pakistan.
14.2.3 Mark-up on Long Term Finance for Export Oriented Projects (EOP) from State Bank of Pakistan carry mark up rate at 5
percent (2012: 5 percent ) per annum. These loans are secured against promissory notes executed by the Bank in favour
of State Bank of Pakistan.
14.2.4 These include overdrawn nostro accounts with other branches and subsidiaries of Standard Chartered Group outside
Pakistan amounting to Rs.807.349 million (2012: Rs. 26.65 million).
15
DEPOSITS AND OTHER ACCOUNTS
Note
Customers
Remunerative
- Fixed deposits
- Savings deposits
Non-Remunerative
- Current accounts
- Margin accounts
- Special exporters' account
Financial Institutions
- Non-remunerative deposits - current account
15.1
2013
2012
-------- (Rupees in '000) ---------
26,043,138
142,234,138
31,200,653
127,476,619
125,832,808
592,409
850,511
295,553,004
106,288,779
381,728
506,714
265,854,493
1,003,987
296,556,991
815,568
266,670,061
15.1 This includes Rs. 456.852 million (2012: Rs.254.274 million) against balances of other branches and subsidiaries of
Standard Chartered Group operating outside Pakistan.
47
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
15.2 Particulars of deposits
Note
In local currency
In foreign currencies
16
2013
2012
-------- (Rupees in '000) --------232,165,284
64,391,707
296,556,991
211,580,131
55,089,930
266,670,061
2,500,000
2,750,000
SUB-ORDINATED LOANS
Term Finance Certificates issued
16.1
16.1 The Bank, on 29 June 2012, issued fourth, rated, unsecured, subordinated TFCs of Rs 2,500 million by way of private
placement. Terms for the fourth outstanding issue are as follows:
Year of Issue
Rating
Rate
2012
AAA
0.75% above the six months
Karachi Inter-Bank Offered Rate
("KIBOR") prevailing one
working day prior to
the beginning of
each semi annual period
10 years
Floor
Ceiling
Repayment
17
OTHER LIABILITIES
21.6.2
17.1
17.2
12.3
2013
2012
-------- (Rupees in '000) --------687,269
1,957,032
204,804
1,417,521
1,130,060
2,146,183
27,536
5,559,289
1,643,340
21,281
318,638
531,620
4,930,334
852,226
21,427,133
955,669
1,941,975
245,124
777,835
192,609
4,381,831
9,014,703
1,353,896
14,643
134,761
473,925
15,322,698
785,737
35,595,406
4,440,883
1,118,406
5,559,289
8,082,781
931,922
9,014,703
134,761
183,877
318,638
122,361
12,400
134,761
17.1 Due to Holding Company
On account of reimbursement of executive and general
administrative expenses
Royalty and other payable
17.2 Provision against off-balance sheet obligations
Opening balance
Charge for the year
Closing balance
Financial statements and notes
Mark-up / return / interest payable in local currency
Mark-up / return / interest payable in foreign currency
Accrued expenses
Advance payments
Sundry creditors
Unrealized loss on forward foreign exchange contracts
Unrealized loss on interest rate derivatives and currency options
Payable to defined benefit plans
Due to Holding Company
Unclaimed balances
Dividend Payable
Provision against off balance sheet obligations
Worker's Welfare Fund (WWF) payable
Bank acceptances
Others
Note
48
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
18
SHARE CAPITAL
18.1 Authorized Capital
2013
2012
(Number of shares)
4,000,000,000
4,000,000,000
Note
Ordinary shares of Rs.10 each
2013
2012
-------- (Rupees in '000) --------40,000,000
40,000,000
29,397,850
29,397,850
9,318,000
38,715,850
9,318,000
38,715,850
18.2 Issued, subscribed and paid-up Capital
2,939,785,018
2,939,785,018
931,800,003
3,871,585,021
931,800,003
3,871,585,021
Ordinary shares of Rs. 10 each fully paid in cash
Issued in terms of scheme
of amalgamation
18.3
18.3 These represent 892,554,151 shares of Rs. 10/- each issued and allotted at par to Standard Chartered Bank, United
Kingdom against transfer of entire undertaking of SCB Branch Business by SCB to the Bank, and 39,245,852 shares
issued and allotted at par credited as fully paid up to persons who were registered shareholders of Union Bank. These
shares have been issued in accordance with the scheme of amalgamation duly approved by State Bank of Pakistan on
4 December 2006.
18.4 At 31 December 2013, Standard Chartered Bank , United Kingdom, held 98.99% shares of the Bank.
2013
2012
Note
19
RESERVES
-------- (Rupees in '000) --------Share premium
19.1
1,036,090
1,036,090
Statutory reserve
19.2
6,008,249
3,902,646
7,044,339
4,938,736
19.1 This represents excess of fair value of the shares over par value of shares issued to registered shareholders of Ex-Union
Bank in terms of the amalgamation scheme.
19.2 In accordance with the Banking Companies Ordinance, 1962, the Bank is required to transfer twenty percent of its profit
of each year to a reserve fund until the amount in such fund equals the paid-up capital of the Bank.
19.3 The Board of Directors in their meeting held on March 5, 2014 has announced a final cash dividend of 14% (Rs. 1.4 per
share) in respect of the year ended December 31, 2013 (2012: Re. 1.25 per share). This is in addition to 10% (Re. 1/per share) interim cash dividend announced during the year. These financial statements for the year ended December
31, 2013 do not include the effect of final dividend appropriations which will be accounted for subsequent to the year end.
20
SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS - NET OF DEFERRED TAX
Note
Surplus / (deficit) arising on revaluation of:
Fixed assets
Available for Sale Securities
20.1 Surplus on revaluation of fixed assets - net of tax
Surplus on revaluation of fixed assets as at 1 January
Surplus on revaluation of owned properties recorded during the year
Surplus realized on disposal of revalued properties
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax
Related deferred tax liability
Surplus on revaluation of fixed assets as at 31 December - net of tax
Less: Related deferred tax liability on:
Revaluation surplus as at 1 January
Revaluation surplus realized on disposal during the year
Incremental depreciation charged during the year transferred
to profit and loss account
Surplus on revaluation of fixed assets as at 31 December - net of tax
20.1
20.2
2013
2012
-------- (Rupees in '000) --------2012
3,378,993
63,708
3,442,701
3,536,245
425,083
3,961,328
3,565,399
(158,101)
3,576,699
-
(5,357)
(2,884)
(8,241)
3,399,057
(7,345)
(3,955)
(11,300)
3,565,399
(29,154)
6,206
(33,109)
-
2,884
(20,064)
3,378,993
3,955
(29,154)
3,536,245
49
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
20.2 Surplus / (deficit) on revaluation of Available
for Sale securities - net of tax
Note
Market Treasury Bills
Pakistan Investment Bonds
Sukuk and Ijarah Bonds
Listed shares and units of mutual funds
Related deferred tax (liability) / asset
21
CONTINGENCIES AND COMMITMENTS
2013
2012
-------- (Rupees in '000) --------(119,111)
116,156
100,968
98,013
(34,305)
63,708
507,350
224,902
(79,314)
673
653,611
(228,528)
425,083
37,738,000
16,762,338
36,307,266
15,074,852
21.1 Transaction-related contingent liabilities
Guarantees issued favouring:
- Government
- Others
21.1.1
21.1.1 Guarantees relating to Islamic Banking Business amount to Rs 1,178 million (2012: Rs 1,593 million).
21.2 Trade-related contingent liabilities
Letters of credit
21.2.1
23,937,105
22,946,980
21.2.1 Letters of credit relating to Islamic Banking Business amount to Rs 7,203 million (2012: Rs 8,287 million).
21.3 Other contingencies
Claims against the Bank not acknowledged as debt
21.3.1
13,713,285
12,683,179
21.3.1These represent certain claims by third parties against the Bank, which are being contested in the Courts of law. The
management is of the view that these relate to the normal course of business and the possibility of an outflow of economic
resources is remote.
Purchase from:
State Bank of Pakistan
Other banks
Customers
Sale to:
State Bank of Pakistan
Other banks
Customers
2013
2012
-------- (Rupees in '000) --------45,491,250
40,277,064
2,490,934
12,336,500
19,978,336
3,018,333
2,643,500
70,837,253
3,761,986
32,313,696
1,299,251
The maturities of the above contracts are spread over a period of one year.
21.5 Commitments to extend credit
The bank makes commitments to extend credit in the normal course of its business but these being revocable commitments
do not attract any significant penalty or expense if the facility is unilaterally withdrawn.
Financial statements and notes
21.4 Commitments in respect of forward foreign exchange contracts
50
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
21.6
Derivative instruments
21.6.1
Product analysis
2013
Interest Rate Swaps
No. of
Notional
Contracts
Principal*
FX Options
No. of
Notional
Contracts
Principal *
(Rupees in '000)
Counterparties
With Banks for
Hedging
Market Making
(Rupees in '000)
13
17,651,475
22
-
4
2,885,652
-
With other entities for
Hedging
Market Making
24
27,689,352
22
405,781
Hedging
Market Making
41
48,226,479
44
811,564
2012 Total Market Making
61
76,813,074
602
6,740,750
With FIs other than banks
Hedging
Market Making
Total
*
405,782
-
At the exchange rate prevailing at year end.
Contracts with banks represent contracts entered with branches of Standard Chartered Bank, UK to obtain cover against the contracts with customers,
except for 5 contracts with local banks having notional principal of Rs 10,594 million.
21.6.2
Maturity analysis
Interest Rate Swaps and FX Options
Remaining
Maturity
Upto 1 month
1 to 3 months
3 to 6 months
6 month to 1 year
1 to 2 year
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
22
No. of
Contracts
Notional
Principal
Mark to Market
Positive
Negative
Net
--------------------------------------- (Rupees in '000) ----------------------------------------
38
9
2
3
7
7
15
4
85
761,131
5,732,780
224,691
4,077,283
13,157,257
11,432,637
11,832,255
1,820,009
49,038,043
(17,969)
(343,675)
(1,195)
(269,607)
(287,794)
(258,618)
(958,786)
(8,539)
(2,146,183)
17,969
63,691
1,195
2,017
63,111
230,545
193,229
8,539
580,296
(279,984)
(267,590)
(224,683)
(28,073)
(765,557)
(1,565,887)
MARK-UP / RETURN / INTEREST EARNED
2013
2012
-------- (Rupees in '000) ---------
On loans and advances to customers
On loans and advances to financial institutions
On investments in:
i) Held for trading securities
ii) Available for sale securities
On deposits with financial institutions / State Bank
of Pakistan
On securities purchased under resale agreements
On call money lending / Placements
16,100,537
109,474
17,307,653
31,357
126,707
13,498,799
116,824
13,091,317
528,724
12,447
30,376,688
574,768
11,675
31,133,594
51
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
23
MARK-UP / RETURN / INTEREST EXPENSED
Note
Deposits
Securities sold under repurchase agreements
Call borrowings
Borrowings from State Bank of Pakistan under
Export Refinance (ERF) scheme
Term Finance Certificates (sub-ordinated loans)
24
GAIN ON SALE OF SECURITIES - NET
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
Ijarah Sukuks
Equity Securities - Listed
25
OTHER INCOME
Income from Sri Lanka branch operations
Rent on property
Gain on disposal of fixed assets
Gain / (Loss) on derivatives
Gains on assets fair valued at acquisition
Others
26
12.4
2013
2012
-------- (Rupees in '000) --------10,251,904
278,122
19,224
9,732,495
283,605
28,287
1,244,824
253,907
12,047,981
1,352,841
256,495
11,653,723
359,016
326,396
46,593
732,005
481
732,486
740,732
285,022
63,449
1,089,203
80,455
1,169,658
10,619
32,281
163,496
(1,301,971)
214,241
7,025
(874,309)
15,457
38,721
37,086
699,858
146,702
13,752
951,576
4,940,603
7,739
234,710
1,262,478
97,807
439,618
755,633
192,579
262,760
24,540
19,275
493,372
52,116
184,375
(977,596)
119,065
103,031
284,273
233,042
8,729,420
4,665,699
8,341
297,388
1,264,634
107,083
449,840
892,284
208,143
171,487
15,600
20,128
485,249
138,538
222,510
4,206,039
137,459
123,617
292,098
149,964
13,856,101
ADMINISTRATIVE EXPENSES
26.1
26.2
26.3
Financial statements and notes
Salaries, allowances etc.
Charge for defined benefit plans
Contributions to defined contribution plans
Rent, taxes, insurance, electricity etc.
Legal and professional charges
Communications
Repairs and maintenance
Stationery and printing
Advertisement and publicity
Donations
Auditors' remuneration
Depreciation
Amortization
Travelling, conveyance and vehicles' running
Reimbursement of executive and general administrative expenses
Royalty
Reward and bonus points redemption
Premises security and cash transportation services
Others
52
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
26.1 Details of the donations given in excess
of Rs. 100,000 are given below:
Donee
Institute of Business Administration
The Citizen Foundation
The Kidney Centre
Lahore University of Management Sciences
SST Public School Rashidabad
Habib University
Aman Foundation
The Hunar Foundation
Note
26.1.1
2013
2012
-------- (Rupees in '000) --------8,000
1,100
2,000
2,400
4,000
3,100
3,940
7,000
2,500
2,500
2,400
1,200
-
26.1.1 Mr. Mohsin Ali Nathani, CEO of the bank is also a member of Board of Governors of The Kidney Centre.
26.2
Auditors' remuneration
Audit fee
Fee for audit of pension, gratuity and provident funds
Special certifications and others
Taxation services
Out-of-pocket expenses
16,528
700
1,047
1,000
19,275
16,045
450
2,750
883
20,128
26.3 During the year, State Bank of Pakistan has partially restricted the remittance of certain outsourcing charges and accordingly
the excess accrual amounting to Rs. 3,005 million has been reversed.
26.4 Total cost for the year included in Administrative Expenses relating to outsourced activities is Rs. 2,464 million. This
includes payments to local companies for obtaining routine services such as personnel for collection and recoveries,
contact centre, service quality and technology maintenance, courier services and executive and general administrative
expenses of SCB UK.
27
OTHER PROVISIONS / ASSET WRITE OFFS
Fixed asset write offs
Other provisions
Provision released against receivable under cross currency
swap arrangements
28
OTHER CHARGES
Net charge / (reversal) against fines and penalties imposed by SBP
Worker's Welfare Fund (WWF)
29
TAXATION
For the year
- Current
- Deferred
For prior years'
2013
2012
-------- (Rupees in '000) --------60,358
60,633
(120,792)
(60,434)
(10,313)
50,320
1,821
329,473
331,294
(2,029)
186,213
184,184
3,749,027
1,846,004
5,595,031
21,136
5,616,167
2,326,067
850,507
3,176,574
21,136
3,197,710
53
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
29.1 Relationship between tax expense and accounting profit
Profit before taxation
Tax at the applicable tax rate of 35% (2012: 35%)
Income (dividend, capital gain etc.) at reduced rates
Expenses that are not deductible in determining taxable income
Prior year provision
2013
2012
-------- (Rupees in '000) --------16,144,180
9,108,265
5,650,463
(65,606)
10,174
21,136
5,616,167
3,187,893
(18,902)
7,583
21,136
3,197,710
29.2 Standard Chartered Bank (Pakistan) Limited
The return for income year 2013 (Tax Year 2014) is due for filing by 30 September 2014.
The tax department amended the assessments for income years 2007 to 2012 (tax years 2008 to 2013 respectively) under
the related provisions of the Income Tax Law, determining additional tax liability on account of various issues (such as
disallowances of expenses relating to provision against loans and advances, goodwill amortisation etc.). The resultant
tax demands of Rs. 10,155 million have been paid by the Bank. Appeals against the amended assessment orders are
pending before different appellate forums.
The management considers that a significant amount of the additional tax liability is the result of timing differences and
is confident that the issues in the above mentioned tax years will be decided in favour of the Bank at appellate forums.
Consequently, no additional provision is required.
The Tax Authorities have passed an order for the income years 2009 and 2010 levying Federal Excise Duty amounting
to Rs. 188 million on certain items. The Bank is contesting the order in the appeal. The Bank has paid entire amount under
protest.
Further, an order for income year 2011 levying Federal Excise Duty of Rs. 515.6 million has been issued. The demand
has been stayed by the Sindh High Court.
29.3 Standard Chartered Bank – Branch Operations
29.4 Union Bank Limited
The tax assessments for the assessment years 1993-94 through tax year 2007 are pending at various appeal forums
against certain disallowances. The management expects favourable decision in pending appeals and consequently, no
additional provision is required.
Financial statements and notes
The assessments have been finalized upto and including tax year 2006. The Bank’s / departmental appeals for the
assessment / tax years 1976-77 to 2006 are pending before different appellate forums on various issues. The management
expects favourable decisions in pending appeals and consequently, no additional provision is required.
54
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
30
EARNINGS PER SHARE - BASIC AND DILUTED
Note
Profit for the year
2013
2012
-------- (Rupees in '000) --------10,528,013
Weighted average number of ordinary shares in issue during the year
5,910,555
3,871,585,021 3,871,585,021
-------- (Rupees) ---------
Earnings per share - basic and diluted
31
32
33
2.72
1.53
2013
2012
-------- (Rupees in '000) ---------
CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks
Balances with other banks
32,331,083
1,451,558
33,782,641
31,487,869
2,363,144
33,851,013
STAFF STRENGTH
------------ (Number) -------------
Permanent
Temporary / on contractual basis / direct contracts
Bank's own staff at the end of year
2,943
9
2,952
3,016
4
3,020
Outsourced
Total staff strength
1,558
4,510
1,944
4,964
DEFINED BENEFIT PLANS
33.1 General description
Non Management Staff Pension Fund
The plan provides pension calculated at 50% of the average pensionable salary after completing 30 years of service. The
employees of the bank are entitled to either pension or gratuity, but not both. However, the employees of ANZ Grindlays
Bank transferred to the bank are entitled to both pension and gratuity and the minimum number of years required for
entitlement of pension is 25 years for these employees. Pension is calculated as 1/120 times the last drawn merged salary
for each year of service.
Non Management Staff Gratuity Fund
The plan provides a lump sum gratuity calculated at one month's salary for each completed year of service (maximum
40 months) after completing 5 years of service. For the employees of ex-ANZ Grindlays Bank, the plan provides a lump
sum calculated at 50% of last drawn merged salary for each completed year of service (maximum 40 months) after
completing 5 years of service. However, if the employee is not entitled for pension, the percentage is increased to 100%.
The employees of SCB are entitled to either pension or gratuity, but not both.
Management Staff Pension Fund
The plan is closed to active employees. The entire liability is in respect of existing pensioners.
33.2 Principal Actuarial Assumptions
The last actuarial valuation of the scheme was carried out on 31 December 2013 and the key assumptions used for
actuarial valuation were as follows:
Discount rate
Expected rate of increase in salary in future years
Expected rate of return on plan assets
Expected long term rate of increase in pension
Mortality rate
Withdrawal rate
2013
2012
12.75% p.a.
12.75% p.a.
12.75% p.a.
6.75% p.a.
LIC (1975-79) ultimate mortality
table rated down one year
Light
12% p.a.
12% p.a.
12% p.a.
6% p.a.
LIC (1975-79) ultimate mortality
table rated down one year
Light
55
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
SCB Non Management
Pension Fund
2013
2012
33.3
Reconciliation of (receivable) / payable from / to defined benefit plan
Present value of defined benefit obligations
Fair value of plan assets
(Asset) / liability recognised
33.4
Actual return on plan assets
Expected return on plan assets
Actuarial gain / (loss) on plan assets
59,346
(82,838)
(23,492)
60,408
(79,928)
(19,520)
100,765
(52,389)
48,376
69,634
(46,960)
22,674
46,716
(44,064)
2,652
38,387
(48,841)
(10,454)
206,827
(179,291)
27,536
168,429
(175,729)
(7,300)
60,408
504
6,880
(4,771)
(3,675)
59,346
68,506
600
8,446
(5,177)
(11,967)
60,408
69,634
2,863
5,144
8,159
14,965
100,765
55,950
2,465
7,220
3,999
69,634
38,387
4,270
(5,309)
9,368
46,716
45,189
5,443
(5,923)
(6,322)
38,387
168,429
3,367
5,144
19,309
(10,080)
20,658
206,827
169,645
3,065
21,109
(11,100)
(14,290)
168,429
79,928
9,118
(4,771)
(1,437)
82,838
76,101
8,523
(5,177)
481
79,928
46,960
5,438
(9)
52,389
41,739
4,657
564
46,960
48,841
5,525
(5,309)
(4,993)
44,064
51,583
2,653
(5,923)
528
48,841
175,729
20,081
(10,080)
(6,439)
179,291
169,423
15,833
(11,100)
1,573
175,729
(19,520)
(1,734)
(2,238)
(23,492)
(7,595)
523
(12,448)
(19,520)
22,674
10,728
14,974
48,376
14,211
5,028
3,435
22,674
(10,454)
(1,255)
14,361
2,652
(6,394)
2,790
(6,850)
(10,454)
(7,300)
7,739
27,097
27,536
222
8,341
(15,863)
(7,300)
504
6,880
(9,118)
(1,734)
600
8,446
(8,523)
523
2,863
8,159
(5,438)
5,144
10,728
2,465
7,220
(4,657)
5,028
4,270
(5,525)
(1,255)
5,443
(2,653)
2,790
3,367
19,309
(20,081)
5,144
7,739
3,065
21,109
(15,833)
8,341
9,118
(1,437)
7,681
8,523
481
9,004
5,438
(9)
5,429
4,657
564
5,221
5,525
(4,993)
532
2,653
528
3,181
20,081
(6,439)
13,642
15,833
1,573
17,406
Cumulative amount of actuarial gains / (losses)
recognised in comprehensive income
33,609
31,371
(30,817)
(15,843)
32,674
47,035
35,466
62,563
33.10
Expected contributions for next year
33.11
Components of plan assets as a percentage of total plan assets
Bonds
Cash and net current assets
Others
-
33%
67%
0%
-
98%
2%
0%
22%
78%
0%
-
93%
7%
0%
97%
3%
0%
91%
9%
0%
Five year data on surplus/ (deficit) of the plans and
experience adjustments
2013
Present value of defined benefit obligation
206,827
168,429
169,645
138,264
136,940
Fair value of plan assets
179,291
175,729
169,423
157,179
154,680
27,536
(7,300)
222
(18,915)
17,740
Experience adjustments on plan liabilities - loss / (gain)
5,373
(18,000)
(741)
(4,247)
(7,621)
Experience adjustments on plan assets - loss / (gain)
6,439
(7,637)
(3,889)
330
3,566
Deficit / (Surplus)
2012
-
2011
2010
2009
----------------------------- (Rupees in '000) ------------------------------
Financial statements and notes
33.9
33.12
2012
Charge for defined benefit plan
Current service cost
Interest cost
Expected return on plan assets
Recognition of past service cost
33.8
2013
(Rupees in '000)
Movement in (receivable) / payable from / to defined benefit plan
Balance as at 1 January
Charge for the year
Contribution to the fund during the year
Actuarial (gain) / loss on plan assets
Balance as at 31 December
33.7
Total
Movement in fair value of plan assets
Fair value as at 1 January
Interest income on plan asset
Contribution by the bank
Benefits paid
Actuarial gain / (loss) on plan assets
Fair value as at 31 December
33.6
SCB Management
Pension Fund
2013
2012
Movement in defined benefit obligation
Obligation as at 1 January
Current service cost
Prior Service Cost
Interest cost
Benefits paid
Actuarial (gain) / loss on obligation
Past service cost resulting from change in Rules
Obligation as at 31 December
33.5
SCB Non Management
Gratuity Fund
2013
2012
56
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
34
SHARE BASED PAYMENTS
The Bank's employees participate in the following share compensation plans operated globally by the ultimate holding
company, Standard Chartered Plc (SCPLC). For employees in Pakistan, the Group has changed its arrangement to issue
shares of SCPLC upon meeting the vesting conditions. Previously the Group operated cash equivalent or "phantom"
arrangements under which employees can receive a cash benefit linked to either the growth in Group's share (Share save
scheme) or the value of the Group's share (restricted / performance share awards) and the arrangement did not give an
option to the Bank's employees to buy SCPLC shares. The market value of shares is denominated in pounds sterling at
the time of grant. Phantom scheme not yet vested are still being accounted for cash settled basis.
The total expense recognised in respect of above schemes on equity settled basis amounts to Rs. 59.741 million (2012:
Rs.2.803 million). As also explained in note 3.20 in detail, the Bank's liability towards its parent, however continues to
be determined and recorded on cash settled basis for options not yet vested. The main features of each plan are as
follows:
i) Standard Chartered Share Plan
The 2012 Standard Chartered Share Plan replaced all the Group’s existing discretionary share plan arrangements
following approval by shareholders at the Group’s Annual General Meeting on 5 May 2011. It is the Group’s main share
plan, applicable to all employees with the flexibility to provide a variety of award types including performance shares,
deferred awards (shares or cash) and restricted shares. Performance and restricted share awards will generally be
in the form of nil price options to participate in the shares of SCPLC. The remaining life of the plan is ten years.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Notional dividend
At 31 December
Weighted
average
exercise price
£ per share
70
36
(8)
(2)
1
97
2012
(Number
in '000)
-
26
45
(1)
70
-
Weighted
average
exercise price
£ per share
-
The weighted average price at the time the options were exercised during 2013 was £ NIL (2012: £NIL).
2013
Range of exercise price
Weighted
average
exercise price
Number
('000)
-
97
NIL
2012
Weighted average remaining life
Expected
Contractual
years
years
10
5.68 / 8.26
Weighted
average
exercise price
Number
('000)
-
70
Weighted average remaining life
Expected
Contractual
years
years
10
6.1 / 8.8
ii) International Sharesave Scheme
The International Sharesave Scheme was first launched in 1996 and made available to all employees of the Bank. Employees have the choice of
opening a three-year or a five-year savings contract. Within a period of six months after the third or fifth anniversary, employees may exercise the
awards and receive any benefit in cash; alternatively, the employee may elect to have the savings, plus interest, repaid in cash. The price at which
they may purchase shares is at a discount of up to 20 percent on the share price at the date of the invitation. There are no performance conditions
attached to options granted. The options granted do not confer any right to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
68
36
(4)
(16)
84
Weighted
average
exercise price
£ per share
11.88
11.78
10.98
14.07
11.91
The weighted average price at the time the options were exercised during 2013 was £10.98 (2012: £10.36).
2012
(Number
in '000)
118
(19)
(31)
68
Weighted
average
exercise price
£ per share
11.42
10.36
11.03
11.88
57
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
Range of exercise price
£9.8/£14.63
Weighted
average
exercise price
Number
('000)
11.91
84
2012
Weighted average remaining life
Expected
Contractual
years
years
3.33/5.33
1.31/3.42
Weighted
average
exercise price
Number
('000)
11.88
68
Weighted average remaining life
Expected
Contractual
years
years
3.33/5.33
2.1
The intrinsic value of vested International Sharesave cash-settled awards as at 31 December 2013 was 41,688 thousand (2012: Rs 9,935 thousand).
iii)
Restricted Share Scheme
The Restricted Share Scheme is a discretionary share incentive scheme for high performing and high potential staff at any level of the organisation
whom the Group wishes to motivate and retain. Except upon appointment when an executive director may be granted an award of restricted shares,
the Restricted Share Scheme is not applicable to the Group's executive directors, as it has no performance conditions attached to it. Fifty per cent of
the award vests two years after the date of the grant and the remainder after three years. The awards granted under this scheme are nil cost options
with any benefit payable in cash. The options granted do not confer any right to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Notional dividend
At 31 December
Weighted
average
exercise price
£ per share
56
(25)
(10)
1
22
2012
(Number
in '000)
-
Weighted
average
exercise price
£ per share
110
(45)
(10)
1
56
-
-
The weighted average price at the time the options were exercised during 2013 was Nil (2012: Nil).
2013
Range of exercise price
N/A
Weighted
average
exercise price
Number
('000)
-
22
2012
Weighted average remaining life
Expected
Contractual
years
years
-
3.13
Weighted
average
exercise price
Number
('000)
-
56
Weighted average remaining life
Expected
Contractual
years
years
-
3.99
The intrinsic value of vested Restricted Share Scheme cash-settled awards as at 31 December 2013 was Rs. 15,332 thousand (2012: Rs. 33,143
thousand).
Supplementary Restricted Share Scheme
The Group operates a Supplementary Restricted Share Scheme which can be used to defer part of an employee's annual bonus in shares. The plan
is principally used for employees in the global markets area and is similar to the RSS outlined above for three important factors: executive directors
are specifically prohibited from the plan; no new shares can be issued to satisfy awards; and there is no individual annual limit.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
Weighted
average
exercise price
£ per share
1
1
2012
(Number
in '000)
-
2
(3)
2
1
2013
Range of exercise price
N/A
Weighted
average
exercise price
Number
('000)
-
1
Weighted
average
exercise price
£ per share
-
2012
Weighted average remaining life
Expected
Contractual
years
years
5
4.07
Weighted
average
exercise price
Number
('000)
-
1
Weighted average remaining life
Expected
Contractual
years
years
5
5.03
The intrinsic value of vested Supplementary Restricted Share Scheme cash-settled awards as at 31 December 2013 was Rs. 1,875 thousand (2012:
Rs. 414 thousand).
Financial statements and notes
iv)
58
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
v)
Performance Share Plan
The Performance Share Plan is designed as an intrinsic part of total remuneration for the Group's executive directors and for a small number of the
Group's most senior executives. The awards granted under this scheme are nil cost options. Certain performance criteria need to be met before the
options can be exercised.
The option granted do not confer any right to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
2012
(Number
in '000)
12
(10)
(1)
1
39
(18)
(9)
12
2013
Range of exercise price
N/a
Weighted
average
exercise price
Number
('000)
-
1
2012
Weighted average remaining life
Expected
Contractual
years
years
-
4.19
Weighted
average
exercise price
Number
('000)
-
12
Weighted average remaining life
Expected
Contractual
years
years
-
7.5
The intrinsic value of vested Performance Share Plan cash-settled awards as at 31 December 2013 was Rs. 2,590 thousand (2012: Rs. 1,833
thousand).
35
COMPENSATION OF CHIEF EXECUTIVE AND EXECUTIVES
Chief Executive
Note
2013
Directors
2012
2013
Executives
2012
2013
2012
----------------------------------- (Rupees in '000) ------------------------------------
Director's remuneration / fees
Managerial remuneration
Contribution to defined
contribution plan
Rent and house maintenance
Medical
Others
Number of persons
35.1
35.3
112,164
130,359
3,630
-
3,160
-
1,851,916
1,747,887
3,422
7,467
1,867
375
125,295
3,422
7,467
1,867
416
143,531
3,630
3,160
185,467
407,843
101,961
28,544
2,575,731
172,804
381,055
105,462
24,294
2,431,502
1
1
3
3
939
871
35.1
The director's remuneration / fees represents remuneration paid to the Bank's 3 non-executive directors (2012: 3) for attending Board and SubCommittee meetings.
35.2
The Chief Executive is entitled to Bank provided free use of furnished accommodation. The Chief Executive and some of the executives are also
provided with Bank maintained cars. In addition, the Chief Executive and some of the executives are also reimbursed for cost of medical expenses
and other benefits like club subscription, children education etc. as per their terms of employment.
35.3
Managerial remuneration also includes charge against share compensation plans.
36
FAIR VALUE OF FINANCIAL INSTRUMENTS
On-balance sheet financial instruments
Except for investment in subsidiaries, unlisted companies, fixed term advances of over one year, staff loans and fixed term deposits of over one year,
the fair value of on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are
either short term in nature or are frequently re-priced. The fair value of fixed term advances of over one year, staff loans, fixed term deposits of over
one year and investment in equity of unlisted companies cannot be calculated with sufficient reliability due to non-availability of relevant active market
for similar assets and liabilities. The fair value of investment in quoted subsidiaries is disclosed in note 7.12.3 to these financial statements.
59
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
37
2013
SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
Wholesale
Consumer
Banking
Banking
Total
-------------- (Rupees in '000) -------------Internal Income
Net mark-up / return / interest income
Non mark-up / non interest income
Operating income
Non mark-up / non interest expenses
Internal non mark-up / non interest expenses
Operating profit before provisions and taxation
Direct write-offs / provisions against non-performing
loans and advances - net of recoveries
Provision for diminution in the value of investments - net
Profit before taxation
Other segment items:
Depreciation on tangible fixed assets
Amortisation on intangible assets
Segment assets (gross)
Segment non performing loans
Segment provision required
Segment liabilities
Segment return on net assets (ROA) (%)
Segment cost of funds (%)
*
**
(12,963,196)
20,227,775
2,681,168
9,945,747
2,062,397
47,662
7,835,688
13,125,586
(1,899,068)
3,203,788
14,430,306
6,937,883
114,728
7,377,695
162,390
18,328,707
5,884,956
24,376,053
9,000,280
162,390
15,213,383
(1,553,634)
284,833
9,104,489
338,004
7,039,691
(1,215,630)
284,833
16,144,180
83,823
15,296
358,034,393
13,912,664
12,580,587
112,549,431
2.64%
5.31%
409,549
36,820
64,769,005
10,742,700
9,498,015
231,159,833
12.74%
2.99%
493,372
52,116
422,803,398
24,655,364
22,078,602
343,709,265
4.03%
3.73%
2012
-------------- (Rupees in '000) --------------
*
*
**
(13,443,551)
20,816,674
4,656,419
12,029,542
4,450,743
55,062
7,523,737
13,681,438
(1,336,803)
2,659,527
15,004,162
9,639,862
182,825
5,181,475
237,887
19,479,871
7,315,946
27,033,704
14,090,605
237,887
12,705,212
1,339,249
442,167
5,742,321
1,815,531
3,365,944
3,154,780
442,167
9,108,265
66,925
36,900
353,670,549
16,211,449
14,754,751
124,429,839
1.69%
6.11%
418,324
101,638
60,785,863
10,913,504
9,707,171
210,149,884
6.59%
3.17%
485,249
138,538
414,456,412
27,124,953
24,461,922
334,579,723
2.34%
4.15%
Segment ROA = Profit before tax / (Segment assets - Segment provisions)
** Segment cost of funds have been computed based on the average balances.
The management reviews the performance of Client Coverage and Global Markets as one business segment, namely Wholesale Banking. Therefore
the business activities of the Bank have been presented in two segments, Wholesale and Consumer Banking.
Wholesale banking
Deposits, trade, advisory services and other lending activities for corporates and financial institutions. It also includes the overall management of
treasury of the Bank, which entails various cash and interest risk management products for customers. The products include FX forwards, FX options
and interest rate swaps.
Consumer Banking
Wealth management, deposits, mortgages, unsecured lending (credit cards, personal loans etc.) and SME lending (including SME trade).
Financial statements and notes
Internal Income
Net mark-up / return / interest income
Non mark-up / non interest income
Operating income
Non mark-up / non interest expenses
Internal non mark-up / non interest expenses
Operating profit before provisions and taxation
Direct write-offs / provisions against non-performing
loans and advances - net of recoveries
Provision for diminution in the value of investments - net
Profit before taxation
Other segment items:
Depreciation of tangible fixed assets
Amortisation of intangible assets
Segment assets (gross)
Segment non performing loans
Segment provision required
Segment liabilities
Segment return on net assets (ROA) (%)
Segment cost of funds (%)
60
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
38
RELATED PARTY TRANSACTIONS
Related parties comprise of Standard Chartered Plc., ultimate parent company, its other subsidiaries and branches, key
management personnel, employees' retirement benefit funds and other associated undertakings. The transactions with
related parties are conducted at commercial / agreed terms. The bank also provides advances to employees at reduced
rates in accordance with their terms of employment.
The transactions and balances with related parties are summarised as follows:
OUTSTANDING BALANCES
Note
Group
Nostro balances with other subsidiaries and branches
of the holding company
Overdrawn nostro balances with other subsidiaries and branches
of the holding company
Vostro balances of other subsidiaries and branches
of the holding company
Placements with other subsidiaries and branches of the holding company
Deposits of group company
Due to holding company
Due to group company
Due from other subsidiaries and branches of the company
Interest receivable from group companies
Inter-company derivative assets
Inter-company derivative liabilities
Other receivables - SLA
Transaction-related contingent liabilities - Guarantees
Commitments in respect of forward foreign exchange contracts
Derivative instruments- Interest rate swaps - Notional
Derivative instruments- FX options - Notional
Subsidiaries
Deposits of subsidiaries
Loans to subsidiaries
Accrued interest receivable
Transaction-related contingent liabilities - Guarantees
Other receivables - SLA
Key management personnel
Loans and advances to key management personnel
Deposits of key management personnel
Others
Loans and advances to customers with common directorship
Deposits by staff retirement benefit funds
Deposits by customers with common directorship
Accrued interest receivable against loans and advances to customers
with common directorship
(Payable to) / receivable from defined benefit plans
Derivative asset
Derivative liabilities
Transaction-related contingent liabilities - Guarantees
Trade-related contingent liabilities - Letter of Credit
2013
2012
-------- (Rupees in '000) --------1,399,406
2,310,442
807,349
26,650
456,852
22,158,840
2,909
5,559,289
37,742
63,560
22,516
36,469
408,725
450
17,614,405
2,608,454
7,057,768
405,782
254,274
19,345,269
12,734
9,014,703
33,867
158,311
1,552
433,119
752,018
416
21,603,912
6,101,969
18,327,414
3,370,375
38.1
38.1
179,845
322,941
6,387
7,800
1,289
71,489
633,690
5,634
1,440
38.1
38.1
90,001
131,167
102,395
181,751
38.1
29,966
325,577
95,858
61,450
40,687
2,482
(27,536)
9,775
29,479
43,288
7,300
65,000
8,504
235,170
35,434
38.1
61
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Note
PROFIT AND LOSS
Group
Mark-up / return / interest earned
Mark-up / return / interest expensed
Fee and commission expense
Fee and commission income
Reimbursement of executive and general administrative expenses
26.3
Payment to group company for direct sales services rendered
Reimbursement of administrative expenses (including rent and other charges)
Net loss on inter-company derivatives
Royalty expense
Dividend paid
Subsidiaries
Mark-up / return / interest earned
Mark-up / return / interest expensed
Commission income earned
Reimbursement of administrative expenses (including rent and other charges)
Reimbursement of salaries
Dividend income
Key management personnel
Mark-up / return / interest earned
Mark-up / return / interest expensed
Salaries and benefits
Post retirement benefits
Remuneration / fee paid to non-executive directors
26.1.1
38.2
110,596
230
5,310
14,321
(977,596)
731,142
5,600
53,356
119,065
8,622,763
49,496
12,401
93
16,513
4,206,039
697,879
4,466
301,251
137,459
6,706,700
65,796
1,918
63,417
23,887
7,124
76,740
32,451
4,711
57,634
16,503
3,769
75,606
3,848
2,316
399,093
18,164
3,630
3,670
4,415
518,809
16,938
3,160
234,710
234,710
7,739
297,388
297,388
8,341
17,382
15,151
8,080
1,943
7,934
2,000
(46,721)
24,837
2,500
83,511
10,303
Financial statements and notes
Others
Contribution to defined contribution plans - net of payments received
Charge for defined contribution plans
Net charge / (income) for defined benefit plans
Mark-up / return / interest expensed on deposits of staff retirement
benefit funds
Mark-up / return / interest expensed on deposits of customers with
common directorship
Mark-up / return / interest earned on advances to customers with
common directorship
Donation to The Kidney Centre
Net gain / (loss) on derivatives
Payment made to Central Depository Company of Pakistan Limited
2013
2012
-------- (Rupees in '000) ---------
62
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
38.1 Net movements in loans and deposits are summarised as follows:
Balance as at
Net
31 December disbursement /
2012
deposits
Net
repayments /
withdrawals
Balance as at
31 December
2013
Loans and advances
---------------------- (Rupees in '000) -------------------------
Key management personnel
102,395
39,416
(51,810)
90,001
Subsidiaries
633,690
7,582,061
(7,892,810)
322,941
563,913
(533,947)
29,966
729,588
(739,413)
2,909
15,249,210 (15,140,854)
179,845
Others
-
Deposits
Group companies
12,734
Subsidiaries
71,489
Key management personnel
181,751
Others
102,137
824,945
(875,529)
131,167
48,003,867 (47,684,570)
421,434
38.2
Mr. Mohsin Ali Nathani, CEO of the bank is also Director of Central Depository Company of Pakistan Limited.
39
CAPITAL ADEQUACY RATIO (CAR) DISCLOSURE
As at 31 December 2013
Capital Structure
The State Bank of Pakistan through its BSD Circular No.07 of 2009 dated April 15, 2009 requires the minimum paid up
capital (net of losses) for all locally incorporated banks to be Rs. 10 billion on December 31, 2013. The paid up capital
of the Bank is comfortably in compliance with the SBP requirement.
Furthermore, SBP requires the Bank to maintain prescribed capital to total risk-weighted assets ratios. The capital
adequacy ratios of the Bank were subject to the Basel 3 capital adequacy guidelines stipulated by the State Bank of
Pakistan through its circular BPRD Circular No.6 of 2013 dated August 15, 2013. These instructions are effective from
December 31, 2013 in a phased manner with full implementation intended by December 31, 2019. As of December 31,
2013 the Banks are required to maintain a minimum Common Equity Tier 1 ratio of 5%, Minimum total Tier 1 ratio of
6.5% and total capital adequacy ratio of 10% to total risk weighted assets.
Banking operations are categorised in either the trading book or the banking book, and risk-weighted assets are determined
according to specified requirements that seek to reflect the varying levels of risk attached to assets and off-balance sheet
exposures.
The Bank’s regulatory capital is analysed into three tiers, with total Tier 1 capital being the sum of CET1 and ADT1 below:
•
Common Equity Tier I capital (CET1), which includes fully paid up capital (including the bonus shares), balance in share
premium account, general reserves, statutory reserves as disclosed on the balance sheet and un-appropriated profits
(net of accumulated losses, if any). Goodwill and other intangibles are deducted from Tier I capital.
•
Additional Tier I capital (ADT1), which includes perpetual non-cumulative preference shares and share premium resulting
from the same. The Bank did not have any ADT1 as of December 31, 2013
•
Tier II capital includes sub-ordinated debt, revaluation reserves on assets, exchange translation reserves and impairment
allowances that are not held against identified debts. Information on the terms, conditions and other features of the Bank's
sub-ordinated debt currently in issue is given in note 16 to these financial statements. There is a restriction on the amount
of impairment allowances that are not held against identified debts upto 1.25 percent of credit risk weighted assets.
•
The capital to risk weighted asset ratio, calculated in accordance with the State Bank of Pakistan's guidelines on capital
adequacy using Basel III Standardised approach is presented below, except for figure of 2012 which have been calculated
using Basel II standardized approach:
63
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
S#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
-
38,715,850
1,036,090
3,902,646
6,676,380
52,286,316
-
50,330,966
20,780,495
39,785
-
-
26,095,310
178,723
-
-
-
-
-
-
343,137
-
(a)
Additional Tier 1 (AT 1) Capital
Qualifying Additional Tier-1 instruments plus any related share premium
of which: Classified as equity
of which: Classified as liabilities
Additional Tier-1 capital instruments issued by consolidated subsidiaries and held
by third parties (amount allowed in group AT 1)
of which: instrument issued by subsidiaries subject to phase out
AT1 before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment)
Investment in own AT1 capital instruments
Reciprocal cross holdings in Additional Tier 1 capital instruments
Investments in the capital instruments of banking, financial and insurance entities that
are outside the scope of regulatory consolidation, where the bank does not own more
than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based on
pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-1 capital
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
Total of Regulatory Adjustment applied to AT1 capital
Additional Tier 1 capital
Additional Tier 1 capital recognized for capital adequacy
(b)
Tier 1 Capital (CET1 + admissible AT1)
38,715,850
1,036,090
6,008,249
6,526,127
(c=a+b)
21,163,417
31,122,899
2,430,730
-
343,137
26,617,170
23,713,796
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
31,122,899
23,713,796
Financial statements and notes
30
Common Equity Tier 1 capital (CET1): Instruments and reserves
Fully Paid-up Capital/Capital deposited with SBP
Balance in Share Premium Account
Reserve for issue of Bonus Shares
General/Statutory Reserves
Gain/(Losses) on derivatives held as Cash Flow Hedge
Unappropriated/unremitted profits/ (losses)
Minority Interests arising from CET1 capital instruments issued to third party by
consolidated bank subsidiaries (amount allowed in CET1 capital of the consolidation group)
CET 1 before Regulatory Adjustments
Common Equity Tier 1 capital: Regulatory adjustments
Goodwill (net of related deferred tax liability)
All other intangibles (net of any associated deferred tax liability)
Shortfall of provisions against classified assets
Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability)
Defined-benefit pension fund net assets
Reciprocal cross holdings in CET1 capital instruments
Cash flow hedge reserve
Investment in own shares/ CET1 instruments
Securitization gain on sale
Capital shortfall of regulated subsidiaries
Deficit on account of revaluation from bank's holdings of property/ AFS
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own
more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above 10%
threshold, net of related tax liability)
Amount exceeding 15% threshold
of which: significant investments in the common stocks of financial entities
of which: deferred tax assets arising from temporary differences
National specific regulatory adjustments applied to CET1 capital
Investment in TFCs of other banks exceeding the prescribed limit
Any other deduction specified by SBP (mention details)
Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2
to cover deductions
Total regulatory adjustments applied to CET1 (sum of 9 to 25)
Common Equity Tier 1
2012
Amounts
Amount
Amount
subject to Pre Basel III
treatment
-------- (Rupees in '000) ---------
64
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
Tier 2 Capital
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Qualifying Tier 2 capital instruments under Basel III
Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments)
Tier 2 capital instruments issued to third party by consolidated subsidiaries
(amount allowed in group tier 2)
of which: instruments issued by subsidiaries subject to phase out
General Provisions or general reserves for loan losses-up to maximum of 1.25%
of Credit Risk Weighted Assets
Revaluation Reserves
of which: Revaluation reserves on Property
of which: Unrealized Gains/Losses on AFS
Foreign Exchange Translation Reserves
Undisclosed/Other Reserves (if any)
T2 before regulatory adjustments
Tier 2 Capital: regulatory adjustments
Portion of deduction applied 50:50 to core capital and supplementary capital based on
pre-Basel III treatment which, during transitional period, remain subject
to deduction from tier-2 capital
Reciprocal cross holdings in Tier 2 instruments
Investment in own Tier 2 capital instrument
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own
more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
Amount of Regulatory Adjustment applied to T2 capital
Tier 2 capital (T2)
Tier 2 capital recognized for capital adequacy
Excess Additional Tier 1 capital recognized in Tier 2 capital
Total Tier 2 capital admissible for capital adequacy
TOTAL CAPITAL (T1 + admissible T2)
Total Risk Weighted Assets
Total Credit Risk Weighted Assets
Risk weighted assets in respect of amounts subject to Pre-Basel III Treatment
of which: recognized portion of investment in capital of banking, financial
and insurance entities where holding is more than 10% of the issued common
share capital of the entity
of which: deferred tax assets
of which: Defined-benefit pension fund net assets
of which: [insert name of adjustment]
Total Market Risk Weighted Assets
Total Operational Risk Weighted Assets
80
81
82
83
Capital Ratios and buffers (in percentage of risk weighted assets)
CET1 to total RWA
Tier-1 capital to total RWA
Total capital to RWA
Bank specific buffer requirement (minimum CET1 requirement plus capital
conservation buffer plus any other buffer requirement)
of which: capital conservation buffer requirement
of which: countercyclical buffer requirement
of which: D-SIB or G-SIB buffer requirement
CET1 available to meet buffers (as a percentage of risk weighted assets)
84
85
86
National minimum capital requirements prescribed by SBP
CET1 minimum ratio
Tier 1 minimum ratio
Total capital minimum ratio
87
88
89
Amounts below the thresholds for deduction (before risk weighting)
Non-significant investments in the capital of other financial entities
Significant investments in the common stock of financial entities
Deferred tax assets arising from temporary differences (net of related tax liability)
76
77
78
79
90
91
92
93
Applicable caps on the inclusion of provisions in Tier 2
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to
standardized approach (prior to application of cap)
Cap on inclusion of provisions in Tier 2 under standardized approach
Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to internal ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
2012
Amounts
Amount
Amount
subject to Pre Basel III
treatment
-------- (Rupees in '000) --------2,250,000
-
2,500,000
560,462
1,573,682
1,529,576
44,106
4,384,144
-
570,652
1,898,555
1,604,430
294,125
4,969,207
-
-
-
-
(d)
(e=c+d)
343,137
343,137
4,041,007
4,041,007
35,163,906
343,137
343,137
4,626,070
4,626,070
28,339,866
(i=f+g+h)
(f)
206,729,831
157,287,541
198,459,934
148,716,098
6,076,826
-
-
(g)
(h)
1,946,241
47,496,049
2,287,656
47,456,180
(a/i)
(c/i)
(e/i)
15.05%
15.05%
17.01%
N/A
11.95%
14.28%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5.0%
6.5%
10.0%
N/A
N/A
10.0%
686,273
5,577,334
-
560,462
570,652
N/A
N/A
N/A
N/A
65
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
39.1
Risk-Weighted Exposures
Credit Risk
Balance Sheet Items:Cash and other liquid Assets
Money at call
Investments
Loans and Advances
Fixed Assets
Other Assets
Off Balance Sheet items
Loan Repayment Guarantees
Purchase and Resale Agreements
Performance Bonds etc
Revolving underwriting Commitments
Stand By Letters of Credit
Outstanding Foreign Exchange Contracts
Credit risk-weighted exposures
Market Risk
General market risk
Specific market Risk
Foreign Exchange Risk
Market risk-weighted exposures
Operational Risk
Total Risk-Weighted Exposures
39.2
Capital Structure Reconciliation
39.2.1
Book Value
2012
Risk Adjusted
Value
Book Value
Risk Adjusted
Value
---------------------- (Rupees in '000) ------------------------174,040,645
221,645
170,705,283
6,155,222
19,778,926
370,901,721
133,668
222,092
104,957,172
6,155,222
18,636,473
130,104,627
155,689,813
500,000
222,105
158,131,821
6,371,213
15,474,116
336,389,068
94,268
100,000
222,552
102,262,598
6,371,213
6,045,897
115,096,528
18,611,939
20,413,724
4,785,678
2,913,875
46,725,216
13,139,828
9,802,453
2,925,700
1,314,933
27,182,914
157,287,541
35,427,753
16,588,532
4,209,396
2,442,556
58,668,237
21,482,576
6,961,322
3,699,050
1,476,623
33,619,571
148,716,099
1,344,624
601,617
1,946,241
1,636,712
650,944
2,287,656
47,496,048
47,456,180
206,729,830
198,459,935
Balance sheet as
in published
financial
statements
2013
Under regulatory
scope of
consolidation
2013
-------- (Rupees in '000) --------32,331,083
1,451,558
22,158,840
146,686,716
135,495,032
6,155,222
55,159,831
399,438,282
32,331,083
1,451,558
22,158,840
146,686,716
135,495,032
6,155,222
5,577,334
55,159,831
405,015,616
Liabilities & equity
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Liabilities against assets subject to finance lease
Deferred tax liabilities
Other liabilities
Total liabilities
6,540,213
16,566,175
296,556,991
2,500,000
118,753
21,427,133
343,709,265
6,540,213
16,566,175
296,556,991
2,500,000
5,696,087
21,427,133
349,286,599
Share capital / Head office capital account
Reserves
Unappropriated / Unremitted profit/ (losses)
Minority Interest
Surplus on revaluation of assets
Total liabilities & equity
38,715,850
7,044,339
6,526,127
3,442,701
399,438,282
38,715,850
7,044,339
6,526,127
3,442,701
405,015,616
Financial statements and notes
Assets
Cash and balances with treasury banks
Balanced with other banks
Lending to financial institutions
Investments
Advances
Operating fixed assets
Deferred tax assets
Other assets
Total assets
66
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Balance sheet as
in published
financial
statements
2013
39.2.2
Assets
Cash and balances with treasury banks
Balanced with other banks
Lending to financial institutions
Investments
of which: Non-significant capital investments in capital of other
financial institutions exceeding 10% threshold
of which: significant capital investments in financial sector
entities exceeding regulatory threshold
of which: Mutual Funds exceeding regulatory threshold
of which: reciprocal crossholding of capital instrument
of which: others (mention details)
Advances
shortfall in provisions/ excess of total EL amount over eligible
provisions under IRB general provisions reflected in Tier 2 capital
Fixed Assets
Deferred Tax Assets
of which: DTAs excluding those arising from temporary differences
of which: DTAs arising from temporary differences exceeding regulatory threshold
Other assets
of which: Goodwill
of which: Intangibles
of which: Defined-benefit pension fund net assets
Total assets
Under regulatory
scope of
Reference
consolidation
2013
-------- (Rupees in '000) -------32,331,083
1,451,558
22,158,840
146,686,716
-
32,331,083
1,451,558
22,158,840
146,686,716
-
343,137
135,495,032
343,137
135,495,032
560,462
6,155,222
55,159,831
26,095,310
126,607
399,438,282
560,462
6,155,222
5,577,334
2,430,730
55,159,831
26,095,310
126,607
405,015,616
Liabilities & Equity
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
of which: eligible for inclusion in AT1
of which: eligible for inclusion in Tier 2
Liabilities against assets subject to finance lease
Deferred tax liabilities
of which: DTLs related to goodwill
of which: DTLs related to intangible assets
of which: DTLs related to defined pension fund net assets
of which: other deferred tax liabilities
Other liabilities
Total liabilities
6,540,213
16,566,175
296,556,991
2,500,000
2,250,000
118,753
21,427,133
343,709,265
6,540,213
16,566,175
296,556,991
2,500,000
2,250,000
5,696,087
5,314,815
86,822
12,413
282,037
21,427,133
349,286,599
Share capital
of which: amount eligible for CET1
of which: amount eligible for AT1
Reserves
of which: portion eligible for inclusion in CET1(provide breakup)
of which: portion eligible for inclusion in Tier 2
Unappropriated profit/ (losses)
Minority Interest
of which: portion eligible for inclusion in CET1
of which: portion eligible for inclusion in AT1
of which: portion eligible for inclusion in Tier 2
Surplus on revaluation of assets
of which: Revaluation reserves on Property
of which: Unrealized Gains/Losses on AFS
In case of Deficit on revaluation (deduction from CET1)
Total liabilities & Equity
39,751,940
39,751,940
6,008,249
6,008,249
6,008,249
6,526,127
3,442,701
3,378,993
63,708
399,438,282
39,751,940
39,751,940
6,008,249
6,008,249
6,008,249
6,526,127
3,442,701
3,378,993
63,708
405,015,616
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
x
y
z
aa
ab
67
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Component of
Source based on
regulatory capital
reference number from
reported by bank
step 2
(amount in thousand
PKR)
Basel III Disclosure Template (with added column)
39.2.3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
31
32
33
34
35
36
37
38
39
40
41
42
Deferred tax assets that rely on future profitability excluding those arising
from temporary differences (net of related tax liability)
Defined-benefit pension fund net assets
Reciprocal cross holdings in CET1 capital instruments
Cash flow hedge reserve
Investment in own shares/ CET1 instruments
Securitization gain on sale
Capital shortfall of regulated subsidiaries
Deficit on account of revaluation from bank's holdings of property/ AFS
Investments in the capital instruments of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and insurance
entities that are outside the scope of regulatory consolidation (amount above 10% threshold)
Deferred Tax Assets arising from temporary differences
(amount above 10% threshold, net of related tax liability)
Amount exceeding 15% threshold
of which: significant investments in the common stocks of financial entities
of which: deferred tax assets arising from temporary differences
National specific regulatory adjustments applied to CET1 capital
Investment in TFCs of other banks exceeding the prescribed limit
Any other deduction specified by SBP (mention details)
Regulatory adjustment applied to CET1 due to insufficient AT1 and Tier 2 to cover deductions
Total regulatory adjustments applied to CET1 (sum of 9 to 25)
Common Equity Tier 1
Additional Tier 1 (AT 1) Capital
Qualifying Additional Tier-1 instruments plus any related share premium
of which: Classified as equity
of which: Classified as liabilities
Additional Tier-1 capital instruments issued by consolidated subsidiaries and held by
third parties (amount allowed in group AT 1)
of which: instrument issued by subsidiaries subject to phase out
AT1 before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment)
Investment in own AT1 capital instruments
Reciprocal cross holdings in Additional Tier 1 capital instruments
Investments in the capital instruments of banking, financial and insurance entities that
are outside the scope of regulatory consolidation, where the bank does not own more
than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and insurance
entities that are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based
on pre-Basel III treatment which, during transitional period, remain subject to deduction
from tier-1 capital
38,715,850
1,036,090
6,008,249
6,526,127
(s)
(u)
(w)
52,286,316
(x)
20,780,495
39,785
-
(j) - (o)
(k) - (p)
(f)
-
{(h) - (r} * x%
{(l) - (q)} * x%
(d)
-
-
(ab)
-
(a) - (ac) - (ae)
343,137
21,163,417
31,122,899
(b) - (ad) - (af)
(i)
-
-
(t)
(m)
-
(y)
-
-
-
-
(ac)
-
(ad)
-
-
Financial statements and notes
23
24
25
26
27
28
29
30
Common Equity Tier 1 capital (CET1): Instruments and reserves
Fully Paid-up Capital/ Capital deposited with SBP
Balance in Share Premium Account
Reserve for issue of Bonus Shares
General/ Statutory Reserves
Gain/(Losses) on derivatives held as Cash Flow Hedge
Unappropriated/unremitted profits/(losses)
Minority Interests arising from CET1 capital instruments issued to
third party by consolidated bank subsidiaries (amount allowed in
CET1 capital of the consolidation group)
CET 1 before Regulatory Adjustments
Common Equity Tier 1 capital: Regulatory adjustments
Goodwill (net of related deferred tax liability)
All other intangibles (net of any associated deferred tax liability)
Shortfall of provisions against classified assets
68
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Component of
Source based on
regulatory capital
reference number from
reported by bank
step 2
(amount in thousand
PKR)
43
44
45
46
Regulatory adjustments applied to Additional Tier 1 due to insufficient
Tier 2 to cover deductions
Total of Regulatory Adjustment applied to AT1 capital
Additional Tier 1 capital
Additional Tier 1 capital recognized for capital adequacy
Tier 1 Capital (CET1 + admissible AT1)
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Tier 2 Capital
Qualifying Tier 2 capital instruments under Basel III
Capital instruments subject to phase out arrangement from tier 2
(Pre-Basel III instruments)
Tier 2 capital instruments issued to third party by consolidated
subsidiaries (amount allowed in group tier 2)
of which: instruments issued by subsidiaries subject to phase out
General Provisions or general reserves for loan losses-up to maximum
of 1.25% of Credit Risk Weighted Assets
Revaluation Reserves eligible for Tier 2
of which: portion pertaining to Property
of which: portion pertaining to AFS securities
Foreign Exchange Translation Reserves
Undisclosed/Other Reserves (if any)
T2 before regulatory adjustments
Tier 2 Capital: regulatory adjustments
Portion of deduction applied 50:50 to core capital and supplementary capital
based on pre-Basel III treatment which, during transitional period, remain subject
to deduction from tier-2 capital
Reciprocal cross holdings in Tier 2 instruments
Investment in own Tier 2 capital instrument
Investments in the capital instruments of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial
and insurance entities that are outside the scope of regulatory consolidation
Amount of Regulatory Adjustment applied to T2 capital
Tier 2 capital (T2)
Tier 2 capital recognized for capital adequacy
Excess Additional Tier 1 capital recognized in Tier 2 capital
Total Tier 2 capital admissible for capital adequacy
TOTAL CAPITAL (T1 + admissible T2)
-
-
31,122,899
2,250,000
560,462
1,573,682
1,529,576
44,106
4,384,144
343,137
4,041,007
4,041,007
4,041,007
35,163,906
(n)
(z)
(g)
portion of (aa)
(v)
(ae)
(af)
-
69
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
39.3 Disclosure template for main features of regulatory capital instruments
Main Features
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Issuer
Unique identifier (eg. KSE Symbol or Bloomberg identifier etc.)
Governing law(s) of the instrument
Regulatory treatment
Transitional Basel III rules
Post-transitional Basel III rules
Eligible at solo/ group/ group & solo
Instrument type
Amount recognized in regulatory capital (Currency in PKR
thousands, as of reporting date)
Par value of instrument
Accounting classification
Original date of issuance
Perpetual or dated
Original maturity date
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount
16 Subsequent call dates, if applicable
TFCs
Standard Chartered Bank (Pakistan) Limited
SCBPL
Companies Ordinance, 1984/ Banking
Companies Ordinance, 1962
Standard Chartered Bank (Pakistan) Limited
SCBPL
Companies Ordinance, 1984/ Banking
Companies Ordinance, 1962/BSD Circular 8 of 2006
Not applicable
Not applicable
Solo and Group
Ordinary shares
Tier 2
Ineligible
Solo and Group
Other Tier 2 (Subordinated Debt)
38,715,850
38,715,850
Shareholders' equity
Dec 2006
Perpetual
Not applicable
No
Not applicable
Not applicable
2,250,000
2,500,000
Liability
June 2002
Dated
31-Dec-22
Yes
May be called, subject to regulatory approval,
at any time after 60th month from the issuance date
Not applicable
Variable/Floating
Not applicable
Not applicable
Fully Discretionary
No
Noncumulative
Nonconvertible
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Floating
6 M KIBOR + 0.75% pa
No
Mandatory
No
Cumulative
Nonconvertible
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Subordinated debt/TFCs
No
No
Creditors including Depositors
Yes
Absence of point of non-viability clause
39.4 CAPITAL-ASSESSMENT AND ADEQUACY BASEL III SPECIFIC
39.4.1Scope of Applications
The Basel 3 framework is applicable to the Bank both at the consolidated level and also on standalone basis. Subsidiaries
are included while calculating Consolidated Capital Adequacy ratio of the Bank using full consolidation method. The
Standardized Approach is used by the Bank for calculating the Capital Adequacy ratio for Credit, Market and Operational
Risk.
Financial statements and notes
Coupons / dividends
Fixed or floating dividend/ coupon
Coupon rate and any related index/ benchmark
Existence of a dividend stopper
Fully discretionary, partially discretionary or mandatory
Existence of step up or other incentive to redeem
Noncumulative or cumulative
Convertible or non-convertible
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts into
Write-down feature
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporary write-down, description of write-up mechanism
Position in subordination hierarchy in liquidation (specify instrument
type immediately senior to instrument
36 Non-compliant transitioned features
37 If yes, specify non-compliant features
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Common Shares
70
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
39.4.2Capital Structure
During 2012, the Bank issued unsecured, subordinated TFCs of Rs. 2,500 million by way of private placement. The
instrument was issued at 0.75% above KIBOR to support the capital base of the Bank and is for a tenor of 10 years. The
instrument is structured to redeem in two equal semi-annual instalments of 50% of the issue amount in 2022. The Bank
may however call the TFC subject to prior approval of the State Bank, on any profit payment date after the 60th month
from the issuance date. The instrument is also subject to a lock-in clause meaning neither principal nor profit may be paid
(even at maturity) if such payment means that the Bank falls below or remains below its minimum capital requirements.
The instrument is currently rated at AAA.
The instrument is classified as a liability and is subordinated to payment of principal and profit to all other indebtedness
of the Bank, including deposits.
For further details of the capital instrument currently part of Tier 2 capital, please refer Note 16.
39.5 Capital Adequacy
The Bank’s capital management approach is driven by its desire to maintain a strong capital base to support the development
of its business, to meet regulatory capital requirements at all times and to maintain good credit ratings, maximising
shareholder value and at the same time maintaining investor, creditor and market confidence.
The capital position is reviewed and monitored by the Asset and Liability Committee (ALCO) of the Bank. Regular reviews
help to ensure that adequate levels of capital and an optimum mix of the different components of capital are maintained
by the Bank to support the strategy. This is integrated with the Bank’s annual planning process that takes into consideration
business growth assumptions across products and business segments and the related impact on capital resources.
The following matters are taken into account while reviewing the Bank's capital position:
a)
b)
c)
d)
current regulatory capital requirements and our assessment of future standards;
demand for capital due to business growth forecasts;
forecasted demand for capital to support credit ratings and as a signalling tool to the market;
available supply of capital and capital-raising options
For calculation of Capital Adequacy Ratio, the Bank adheres to the calculation of capital requirements for credit, market
and operational risk as per the guidelines of SBP.
For credit risk, the Bank uses the 'Standardized Approach'. The Bank uses reputable and SBP approved rating agencies
(ECAIs) for deriving risk weights for specific credit exposures. These are consistently applied across the Bank's credit
portfolio for both on and off balance sheet exposures. The ECAIs used for rating various types of exposures are tabled
in note 39.6 to these financial statements.
For the purposes of Credit Risk Mitigation under the 'Standardised Approach', the Bank follows the instructions laid down
by SBP vide their Circular No. 08 dated 27 June 2006 with regard to eligibility of collaterals, valuation and management.
Where a transaction is secured by an eligible collateral and meets the eligibility criteria and minimum requirements as
laid down by SBP, the Bank reduces its exposure under that particular transaction by taking into account the risk mitigating
effect of the collateral for the calculation of capital requirement. Collaterals used include: Government of Pakistan
guarantees, Inter-group guarantees, margins / liens and saving certificates.
The Bank calculates its capital requirement for market risk in its portfolio, based on the methodology provided by SBP
which takes account of specific and general market risk capital charge for interest rate risk using the duration method.
For calculation of operational risk capital charge, the business activities of the Bank are divided into eight business lines:
corporate finance, trading and sales, retail banking, commercial banking, payments and settlement, agency services,
asset management and retail brokerage. The Bank's operations are mapped into these eight business lines as per the
criteria laid down by SBP vide Circular No 08 dated 27 June 2006.
Within each business line, gross income is the broad indicator that serves as a proxy for the scale of business operations
and thus the likely scale of operational risk exposure within each of these business lines. The capital charge for each
business line is calculated by multiplying gross income by beta factors assigned by SBP to that business line. Beta serves
as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and
the aggregate level of gross income for that business line.
The total capital charge is calculated as the three-year average of the simple summation of the regulatory capital charges
across each of the business lines in each year.
The 'Standardised Approach' is preferred over the 'Basic Indicator Approach' so as to arrive at a capital charge that is
reflective of the risks associated with each of the Bank's business lines.
The capital requirements for the major risk categories are indicated below:
71
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Capital Requirements
2013
2012
Credit Risk
Risk Weighted Assets
2013
2012
----------------------------- Rupees in '000 -----------------------------
Portfolios subject to standardized approach (Simple)
Government of Pakistan and State Bank of Pakistan
Public Sector Entities
Banks
Corporate Portfolio
Retail Portfolio
Residential Mortgage Finance
Past Due Portfolio
All other Risk Weighted Assets
Equity Exposure Risk in the Banking Book
13,366
188,006
1,866,115
9,804,021
943,414
104,318
308,131
2,479,169
9,426
380,173
1,782,358
10,180,305
822,915
125,269
307,194
1,241,710
133,668
1,880,062
18,661,157
98,040,214
9,434,148
1,043,186
3,081,318
24,791,695
94,268
3,801,735
17,823,581
101,803,053
8,229,158
1,252,693
3,071,948
12,417,110
22,209
22,255
222,092
222,552
134,462
60,161
163,671
65,094
1,344,624
601,617
1,636,712
650,944
4,749,604
20,672,976
4,745,618
19,845,988
47,496,048
206,729,829
47,456,180
198,459,934
Equity portfolio subject to market-based approaches
Under simple risk weight method
Market Risk
Capital Requirement for portfolios subject to Standardized Approach
Interest rate risk
Equity position risk etc.
Operational Risk
Capital Requirement for operational risks
TOTAL
Capital Adequacy Ratio
2012
Total eligible regulatory capital held (Note: 39.1)
(e)
35,163,907
28,339,866
Total Risk Weighted Assets (Note: 39.1)
(i)
206,729,831
198,459,934
17.01%
14.28%
Capital Adequacy Ratio
(e) / (i)
Types of exposures and ECAI's used
JCR - VIS
PACRA
STANDARD AND POORS
MOODY'S
FITCH
Corporate
Banks
Sovereigns
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
The Bank adheres to the mapping instructions issued by SBP on the Revised Regulatory Capital Framework under Basel II, issued
vide BSD Circular No. 8 of 2006 dated 27 June 2006, vide BSD Circular Letter No. 09 of 2007 dated 24 August 2007, vide BSD Letter
No. BSD/BAI-2/201/1141/2009 dated 2 December 2009 and vide BSD Circular No. 5 of 2010 dated 5 October 2010 with regard to
credit ratings to be used. These are as follows:
Financial statements and notes
39.6
2013
72
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
LONG-TERM RATING GRADES MAPPING
Risk
Weightage
Standard & Poors
Ratings Services
Moody’s Investors
Services
Fitch Ratings
PACRA
20%
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1
B2
B3
Caa1
Caa2
Caa3
Ca
C
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
50%
100%
100%
150%
150%
JCR VIS
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
SHORT-TERM RATING GRADES MAPPING
Risk
Weightage
Standard & Poors
Ratings Services
Moody’s Investors
Services
Fitch Ratings
PACRA
20%
A-1+
A-1
A-2
A-3
B
B-1
B-2
B-3
C
P-1
F1+
F1
F2
F3
B
C
D
A-1
A-1
A-2
A-3
Others
A-2
A-3
Others
50%
100%
150%
P-2
P-3
NP
JCR VIS
73
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.
RISK MANAGEMENT
Through its risk management structure, the Bank seeks to manage efficiently the core risks: credit, market, country, and
liquidity risk. These arise directly through the Bank’s commercial activities whilst compliance and regulatory risk, operational
risk and reputational risks are normal consequences of any business undertaking.
The basic principles of risk management followed by the Bank include:
Balancing risk and return
Risk is taken in line with the requirements of the Bank’s stakeholders. Risk should be taken within the Bank's risk appetite,
consistent with the approved strategy. Any such risks are avoided which have a material probability of causing financial
distress to the Bank or its clients or customers.
Responsibility
Given the Bank is in the business of taking risk, it is everyone’s responsibility to ensure that risk taking is both disciplined
and focused. The Bank takes account of its social responsibilities and its commitment to customers in taking risk to produce
a return.
Accountability
Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risk taking must
be transparent, controlled and reported.
Anticipation
The Bank looks to anticipate future risks and to ensure awareness of all risk.
Competitive Advantage
The Bank seeks to achieve competitive advantage through efficient and effective risk management and control.
Risk management
The Bank aims to implement best practices and have a specialist risk function of international standards, with strength
in depth, experience across risk types and economic scenarios.
Ultimate responsibility for the effective management of risk rests with the Company’s Board of Directors. Acting within
an authority delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of
the Country Risk Committee (“CRC”) and the Asset and Liability Committee (“ALCO”).
The day to day responsibility for managing risk rests with CCRO who oversees and manages the risk through a team of
managers; Senior Credit Officer responsible for credit risk in Wholesale Bank, Country Credit Head responsible for credit
risk in Consumer Bank (including SME), Head of Special Assets Management responsible for remedial risk management,
Head of Credit Risk Controls responsible for collateral management, security documentation, credit MIS and controls,
Head of Market Risk responsible for liquidity risk and risks associated with price movements, arising from interest and
exchange rate movements and Head of Operational Risk responsible for enterprise wide operations. The Bank has
established policies, procedures, processes, and controls and have provided the Risk team adequate support by way of
risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing and managing risk.
40.1 Credit risk
Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures
may arise from lending, trade finance, securities and derivative exposures. Credit exposures include both individual
borrowers and groups of connected counterparties and portfolios in the banking and trading books.
Financial statements and notes
CRC headed by Country Chief Risk Officer (CCRO), through authority delegated by the Board through the Bank’s Executive
Committee, is responsible for credit risk, market risk, operational risk, compliance risk and regulatory risk, legal risk and
reputational risk. ALCO, through authority delegated by the Board through the Bank’s Executive Committee, is responsible
for management of the Bank's liquidity, capital adequacy and structural foreign exchange risk. The Pension Executive
Committee, through authority delegated by the Board through the Bank's Executive Committee is responsible for
management of pension risk.
74
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
The Board of Directors has delegated down the authority to CRC through the Bank’s Executive Committee to establish
risk appetite and make recommendations to the Board for approval of risk appetite and policies for managing credit risk.
The CEO and the Executive Committee in turn rely on CCRO and the Risk Committee to determine these and recommend
for their support and Board's approval. The CRC is also delegated down by the BOD responsibility to delegate credit
authorities to independent Risk Officers.
Credit risk appetite is established through business strategy papers and underwriting standards by the business managers,
which are approved by the Board once recommended, and supported by the Executive Committee.
Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the
Senior Credit Officer and Country Credit Head levels for their respective jurisdictions with specific policies and procedures
being adapted to different risk environments and business goals. Credit analysis includes review of facility details, credit
grade determination and financial spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing based on
scenario analysis is a combined responsibility of Client Relationship and Risk and Finance function. Client relationship
origination and credit approval roles are clearly segregated throughout Wholesale and Consumer Banking segment.
Credit concentration risk is governed by specific policy, the adherence to which is managed by the Country Risk Committee
(CRC). Credit concentration risk is principally managed based on three components: single name borrower exposure,
industry concentrations and product concentration. In addition to the SBP specified prudential limits on single or group
exposures, limits are also established by the CCRO and approved by CRC in line with the Credit Reference Level framework
(“CRL”).
40.1.1Wholesale Banking
Within the Wholesale Banking business, a alpha numerical risk grading system is used for quantifying the risk associated
with a counter-party. The grading is based on a probability of default measure, with customers analysed against a range
of quantitative and qualitative measures. Expected Loss is used for further assessment of individual exposures and portfolio
analysis. There is a clear segregation of duties with loan applications being prepared separately from the approval chain.
40.1.2Consumer Banking
For Consumer Banking, program based standard credit application forms are generally used, which are processed in
central units for different products and market segments. Consumer Banking Analytics team has developed Bureau scores
and uses Bureau data for portfolio monitoring and for underwriting new business. Medium enterprises relationship based
business of Consumer Bank operates much like Wholesale banking with numerical risk grading system for quantifying
counter party risk. As with Wholesale Banking, origination and approval roles are segregated.
75
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.1.3
2013
Segment by class of business
Advances - Gross
(Rupees
in '000)
Deposits
Percent
(Rupees
in '000)
Percent
Contingencies and
Commitments
(Rupees
Percent
in '000)
Chemical and pharmaceuticals
9,478,049
6.01
4,389,750
1.48
3,039,547
3.88
Agri business
8,134,640
5.16
311,040
0.10
40,712
0.05
32,969,511
20.92
1,386,837
0.47
2,145,350
2.74
5,417,355
3.44
12,266,053
4.14
1,550,752
1.98
Textile
Communication
Insurance
-
-
1,160,833
0.39
-
Telecommunications and information technology
-
-
1,895,336
0.64
52,109
0.07
Cement
2,915,894
1.85
42,081
0.01
217,895
0.28
Sugar
2,946,934
1.87
4,085
-
95,262
0.12
Automobile and transportation equipment
2,896,457
1.84
634,871
0.21
1,671,820
2.13
Transportation
4,005,359
2.54
1,889,852
0.64
4,024,157
5.13
Financial
2,515,045
1.60
1,337,529
0.45
27,137,097
34.60
Electronics and electrical appliances
3,592,146
2.28
4,521,543
1.52
3,760,774
4.79
23,283,078
14.78
11,959,338
4.03
18,088,312
23.06
2,966,675
1.88
43,929
0.01
510,006
0.65
Production and transmission of energy
Shoes and leather garments
Individuals
16,760,590
10.64 194,286,431
65.51
1,369
Others
39,691,901
25.19
60,427,483
20.40
16,102,280
20.52
100.00 296,556,991
100.00
78,437,442
100.00
157,573,634
-
2012
Advances - Gross
(Rupees
in '000)
Chemical and pharmaceuticals
Percent
Deposits
(Rupees
in '000)
Percent
Contingencies and
Commitments
(Rupees
Percent
in '000)
7.14
4,164,613
1.56
4,308,516
5,714,958
3.58
193,476
0.07
34,181
0.05
29,111,057
18.23
938,788
0.35
1,655,619
2.23
1,092,990
0.68
15,083,632
5.66
2,437,299
3.28
82,756
0.05
1,771,289
0.66
Telecommunications and information technology
5,886,625
3.69
2,457,249
0.92
44,628
0.06
Cement
5,482,201
3.43
15,671
0.01
823,837
1.11
Sugar
2,784,973
1.74
1,333
0.00
90,292
0.12
Automobile and transportation equipment
2,439,499
1.53
849,140
0.32
1,171,576
1.58
Transportation
3,046,874
1.91
3,466,291
1.29
1,373,578
1.86
Financial
2,683,563
1.68
1,873,085
0.70
28,726,780
38.65
Textile
Communication
Insurance
Electronics and electrical appliances
Production and transmission of energy
Shoes and leather garments
-
5.80
-
1,755,137
1.10
3,487,607
1.31
4,975,420
6.69
24,144,407
15.12
11,080,729
4.16
16,017,525
21.55
1.59
0.21
94,264
0.04
153,727
Individuals
17,222,691
2,542,747
10.79 172,525,710
64.70
1,369
0.00
Others
44,258,610
27.72
48,667,184
18.25
12,514,751
16.84
100.00 266,670,061
100.00
74,329,098
100.00
159,646,067
Financial statements and notes
11,396,979
Agri business
76
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.1.4
Details of non-performing advances and specific
provisions by class of business segment
2013
Classified
Advances
2012
Specific
Provision
held
Classified
Advances
Specific
Provision
held
290,825
102,997
7,651,539
5,997
316,939
49,326
222,332
3,672,466
9,205,720
21,518,141
335,092
283,858
16,799
15,967
7,617,809 7,547,686
16,564
15,645
358,068
353,970
49,326
49,326
127,708
127,708
5,684,022 4,493,025
12,919,565 11,004,085
27,124,953 23,891,270
----------------------------- (Rupees in '000) -----------------------
Chemical and pharmaceuticals
Agri business
Textile
Footwear and Leather garments
Automobile and transportation equipment
Financial
Production and transmission of energy
Individuals
Others
40.1.5
310,625
102,997
7,829,032
5,997
316,939
49,326
222,332
4,678,803
11,139,313
24,655,364
Segment by sector
2013
Advances
(Rupees
in '000)
Public / Government
Private
11,233,776
146,339,858
157,573,634
Deposits
%
(Rupees
in '000)
Contingencies and
Commitments
(Rupees
%
in '000)
%
7.13%
4,593,589
92.87% 291,963,402
100% 296,556,991
1.55% 8,400,266
98.45% 70,037,176
100% 78,437,442
10.71%
89.29%
100%
2012
Advances
(Rupees
in '000)
Public / Government
Private
40.1.6
10,826,928
148,819,139
159,646,067
Deposits
%
(Rupees
in '000)
Contingencies and
Commitments
(Rupees
%
in '000)
%
6.78%
4,138,018
93.22% 262,532,043
100% 266,670,061
1.55% 3,398,836
98.45% 70,930,262
100% 74,329,098
4.57%
95.43%
100%
Details of non-performing advances and specific provisions by sector
2013
Classified
Advances
2012
Specific
Provision
held
Classified
Advances
Specific
Provision
held
24,655,364
24,655,364
21,518,141
21,518,141
27,124,953 23,891,270
27,124,953 23,891,270
Profit
before
taxation
Total
assets
employed
----------------------------- (Rupees in '000) -----------------------
Public / Government
Private
40.1.7
GEOGRAPHICAL SEGMENT ANALYSIS
2013
Net Assets
employed
Contingencies
and
Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
16,144,180 399,438,282
16,144,180 399,438,282
55,729,017 78,437,442
55,729,017 78,437,442
2012
Profit
before
taxation
Total
assets
employed
Net Assets Contingencies
employed
and
Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
9,108,265 388,872,017
9,108,265 388,872,017
54,292,294 74,329,098
54,292,294 74,329,098
77
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.2 Market Risk
The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk
exposures arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure
to equity and commodity price risk.
Market risk is managed by the Head of Market Risk reporting directly to the CCRO, who agrees policies and procedures
and levels of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms
of agreed policy. These are agreed and delegated down by RC under delegated authority from the BOD, and are monitored
by the Head of Market Risk as part of an independent risk management function. Policies cover both trading and nontrading books.
In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios,
factor sensitivity measures and derivatives are also employed as additional risk management tools to manage and hedge
market risk exposures. Risk models are periodically back tested against actual results to ensure that pre-determined levels
of accuracy are maintained.
40.3 Foreign Exchange Risk
2013
Assets
Liabilities
Off-balance
sheet items
Net foreign
currency
exposure
----------------------------------------- (Rupees in '000) -----------------------------------
Pakistan rupee
United States dollar
Great Britain pound
Euro
Swiss Franc
Japanese yen
Others
300,902,879
44,295,260
6,144,750
5,298,447
19,390
169,777
35,048
356,865,551
276,354,687
54,773,814
6,139,909
5,225,455
25,064
176,553
42,804
342,738,286
Assets
Liabilities
43,642,526
(36,301,863)
(832,886)
(3,509,463)
(123,497)
(2,172,093)
(702,724)
-
68,190,718
(46,780,417)
(828,045)
(3,436,471)
(129,171)
(2,178,869)
(710,480)
14,127,265
2012
Net foreign
currency
exposure
------------------------------------------- (Rupees in '000) -------------------------------------
Pakistan rupee
United States dollar
Great Britain pound
Euro
Swiss Franc
Japanese yen
Others
273,004,524
62,079,954
4,840,138
4,396,617
22,420
46,712
38,006
344,428,371
260,066,108
64,306,661
4,892,279
4,504,075
22,483
36,799
24,437
333,852,842
47,310,939
(41,413,711)
(125,476)
(2,950,089)
(27,538)
(2,211,800)
(582,325)
-
60,249,355
(43,640,418)
(177,617)
(3,057,547)
(27,601)
(2,201,887)
(568,756)
10,575,529
40.3.1 Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
40.3.2 The management sets limits on the level of exposure by currency in total, for both overnight and intra day positions which are monitored
daily.
Financial statements and notes
Off-balance
sheet items
78
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.4
MISMATCH OF INTEREST RATE SENSITIVE ASSETS AND LIABILITIES
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
Deposits and other accounts
Sub-ordinated loans
Other liabilities
On-balance sheet gap
Effective
yield /
interest
rate
-
Total
2013
Exposed to yeid / interest rate risk
Over three Over six
Over one
Over two Over three
months to months to
year to
years to
years to
six months one year
two years three years five years
Upto one
month
Over one
Over five
Over ten
month to
years to
years
three
ten years
months
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
Non interest
bearing
financial
instruments
32,331,083
1,451,558
9,200,051
-
-
-
2.58% 22,158,840 17,103,259 5,055,581
9.78% 146,686,716 19,907,199 77,346,433
10.71% 135,495,032 75,820,047 37,980,257
18,742,322
356,865,551 122,030,556 120,382,271
7,532,546
14,328,011
21,860,557
6,540,213
7.72% 16,566,175
273,018 9,005,014
5.93% 296,556,991 152,279,754 7,252,214
9.67%
2,500,000
20,574,907
342,738,286 152,552,772 16,257,228
14,127,265 (30,522,216) 104,125,043
8,154,701
2,493,027
10,647,728
-
-
-
-
-
23,131,032
1,451,558
-
-
622,892
2,576,762
18,742,322
46,524,566
18,506,841
700,369
19,207,210
13,662,786
696,223
14,359,009
953,318
900,336
1,853,654
4,670,543
2,929,526
2,500,000
10,100,069
11,760,488
11,616
248,880
4,752,001
664,378
4,763,617
913,258
5,884,111 18,293,952
411,917
398,403
810,320
13,548,689
222,354
222,354
1,631,300
901,512
1,000
902,512
(902,512)
133,333
1,103,000
1,236,333
1,200,000
1,200,000
7,191,278
7,191,278
9,866,196
9,866,196
910,005
910,005
-
-
3,943,950 10,525,773
3,943,950 10,525,773
(2,707,617) (9,325,773)
4,241,359
4,241,359
2,949,919
1,966,058
1,966,058
7,900,138
910,005
910,005
-
-
-
16,498,608
9,531,438
(902,512)
6,540,213
821,321
- 128,279,715
- 20,574,907
- 156,216,156
- (109,691,590)
Off-balance sheet
Financial instruments
Forward Lending
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Forward Borrowing
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Off-balance sheet gap
Total yield / interest risk sensitivity gap
24,805,505
405,781
88,259,248
113,470,534
5,392,347
380,565
32,131,937 42,531,211
32,512,502 47,923,558
112,346
25,216
12,493,100
12,630,662
23,420,975
405,781
77,242,740
101,069,496
12,401,038
1,721,484
380,565
39,108,124 31,640,920
39,488,689 33,362,404
(6,976,187) 14,561,154
112,346
25,216
6,493,696
6,631,258
5,999,404
26,528,303 (37,498,403) 118,686,197
17,759,892
Cumulative yield / interest risk sensitivity gap
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
Deposits and other accounts
Sub-ordinated loans
Other liabilities
On-balance sheet gap
81,187,794
Effective
yield /
interest
rate
-
Total
3,176,494
8,968,179
- (109,691,590)
98,947,686 102,124,180 111,092,359 127,590,967 137,122,405 136,219,893 136,219,893
2012
Exposed to yeid / interest rate risk
Over six
Over one
Over two Over three
months to
year to
years to
years to
one year
two years three years five years
Over one Over three
Over five
Over ten
month to
months to
years to
years
three
six months
ten years
months
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
Non interest
bearing
financial
instruments
31,487,869
2,363,144
Upto one
month
7,666,714
17,709,484 1,650,379
14,410,283 16,440,364
74,094,438 34,343,688
113,880,919 52,434,431
485,406
1,006,685
19,566,518
21,058,609
84,228,078
2,779,971
87,008,049
4,117,029
647,644
4,764,673
6,113,557
421,238
6,534,795
4,752,469
667,617
5,420,086
6,164,867
7.79% 23,399,389
6,804,482 8,124,609
6.32% 266,670,061 137,939,898 7,632,326
13.06%
2,750,000
250,000
34,868,525
333,852,842 144,744,380 16,006,935
10,575,529 (30,863,461) 36,427,496
6,011,959
4,244,037
2,500,000
12,755,996
8,302,613
17,473
7,425,298
7,442,771
79,565,278
33,338
766,693
800,031
3,964,642
373,987
669,020
1,043,007
5,491,788
739,952
739,952
4,680,134
1,262,585
1,262,585
(1,262,585)
577,544
577,544
1,600,000 14,446,735
1,600,000 14,446,735
2,748,210
2,748,210
-
-
9,250,028
9,250,028
5,196,707
862,689
862,689
1,885,521
-
-
9,876,841
622,936
-
2.93% 19,845,269
11.18% 131,976,863
12.31% 135,184,145
23,571,081
344,428,371
-
-
-
-
-
-
-
23,821,155
2,363,144
-
-
908,398
2,663,031
23,571,081
53,326,809
6,164,867
31,004
- 107,992,789
- 34,868,525
- 149,057,185
- (95,730,376)
Off-balance sheet
Financial instruments
Forward Lending
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
37,581,238
3,370,375
35,333,170
76,284,783
238,095
1,657,015
9,655,486 15,317,400
9,655,486 17,212,510
1,457,246
1,713,360
10,313,487
13,484,093
16,513,408
46,797
16,560,205
Forward Borrowing
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Off-balance sheet gap
39,231,837
3,370,375
33,612,948
76,215,160
69,623
266,262
922,438
1,657,015
19,334,185 10,074,264
19,600,447 12,653,717
(9,944,961) 4,558,793
183,154
1,713,360
4,157,702
6,054,216
7,429,877
10,588,131
46,797
10,634,928
5,925,277
Total yield / interest risk sensitivity gap
10,645,152 (40,808,422) 40,986,289
15,732,490
85,490,555
Cumulative yield / interest risk sensitivity gap
177,867
4,462,827 12,696,308
4,462,827 12,696,308
(3,885,283) (11,096,308)
79,359
15,910,357 101,400,912 101,480,271
(5,604,520)
95,875,751 105,752,592 106,375,528 106,375,528
(95,730,376)
79
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.5 Yield / Interest Rate Risk
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 financial instruments will fluctuate due to changes in the market interest rates. The Bank is exposed to various
risks associated with the effects of fluctuations in the prevailing levels of market interest rates on its financial position and
cash flows. The Bank manages this risk by matching the re-pricing of assets and liabilities and off-balance sheet instruments.
40.6 Liquidity Risk
The Bank defines liquidity risk as the potential that the Bank either does not have sufficient liquid financial resources
available to meet all its obligations as they fall due, or can only access these financial resources at excessive cost.
Liquidity risk, both short term and structural is monitored through the internal liquidity risk management framework and
is managed through the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for
liquidity risk management.
A range of tools are used for the management of liquidity. These comprise commitment and wholesale borrowing guidelines,
key balance sheet ratios, medium term funding requirements and day to day monitoring of future cash flows.
In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are
in place and can be implemented on a timely basis to minimize the liquidity risk that may arise due to unforeseen adverse
changes in the market place.
A substantial portion of the Bank’s assets are funded by customer deposits made up of current and savings accounts
and other deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source
of funds.
The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements
or as prudential investments of surplus funds.
40.7 Maturities of assets and liabilities - based on contractual maturity of assets and liabilities of the bank
In accordance with the guidelines issued by SBP through BSD Circular Letter No. 3 of 2011 and BSD Circular Letter No.
2 of 2013, Banks are required to disclose maturities of assets and liabilities separately for 'contractual maturities' and
'expected maturities'. The expected maturities are calculated using three (3) years historical balances and identifying
"Core" and "Non-Core" balances using monthly volatility analysis. Fixed / intangible assets are presented on the basis
of their depreciation / amortisation schedule.
Financial statements and notes
80
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
2013
Total
Upto one
month
Over one
month to
three months
Over three
months to
six months
Over six
months to
one year
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with
treasury banks
Balances with other banks
Lendings to financial institutions
32,331,083
32,331,083
-
-
-
-
-
-
-
-
1,451,558
1,451,558
-
-
-
-
-
-
-
-
-
-
22,158,840
17,103,259
5,055,581
Investments
146,686,716
19,622,173
77,346,433
7,532,546
8,154,701
18,506,841
13,662,786
1,238,343
622,893
Advances
135,495,032
72,620,636
31,094,099
10,070,612
1,997,751
2,445,495
5,185,294
6,504,275
3,639,485
28,937,914
3,840,168
12,431,496
427,145
2,423,670
3,668,938
5,944,729
193,229
8,539
6,155,222
14,555
29,110
43,664
87,327
230,867
174,655
341,413
786,157
4,447,474
26,221,917
898
1,793
2,689
5,378
10,755
10,755
21,511
53,483
26,114,655
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
-
-
125,958,512
-
18,076,656
-
-
-
-
12,668,827
24,862,896
-
-
399,438,282
146,984,330
24,978,219
Bills payable
6,540,213
6,540,213
Borrowings
16,566,175
1,094,339
9,005,014
4,670,543
11,616
248,880
411,917
296,556,991
280,559,469
7,252,214
2,929,526
4,752,001
664,378
398,403
-
8,298,771
5,110,557
1,937,385
-
32,499,514
Liabilities
Deposits and other accounts
Sub-ordinated loans
Other liabilities
Deferred tax liabilities
2,500,000
21,427,133
118,753
4,535,985
-
-
5,430,533
-
-
1,160,744
-
-
-
-
-
8,758,598
315,330
-
-
-
258,618
-
222,354
-
-
901,512
-
-
1,000
-
-
2,500,000
-
958,786
118,753
8,539
-
343,709,265
292,730,006
21,687,761
8,760,813
13,522,215
1,228,588
1,068,938
1,299,893
3,411,051
55,729,017
(145,745,676)
104,270,751
9,315,843
(853,388)
23,634,308
23,909,281
6,998,878
1,699,506
32,499,514
Net assets
Share capital
38,715,850
Reserves
7,044,339
Unappropriated profit
6,526,127
Surplus on revaluation
of assets - net
3,442,701
55,729,017
2012
Total
Assets
Upto one
month
Over one
Over three
Over six
Over one
Over two
Over three
Over five
month to
months to
months to
year to
years to
years to
years to
three months
six months
one year
two years
three years
five years
ten years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Over ten
years
Cash and balances with
treasury banks
31,487,869
31,487,869
-
-
-
-
-
-
-
-
2,363,144
2,363,144
-
-
-
-
-
-
-
-
institutions
19,845,269
17,709,484
1,650,379
Investments
131,976,863
14,409,618
16,440,364
1,006,685
84,228,078
4,117,029
6,113,557
4,752,469
909,063
Advances
135,184,145
63,558,539
22,746,446
13,708,791
5,065,056
10,732,451
5,204,834
5,910,544
6,521,215
33,845,937
211,337
15,745,919
9,615,106
7,326,044
20,764
220,291
520,208
186,268
6,371,213
15,763
31,527
47,291
94,583
310,946
189,165
371,439
883,508
4,426,991
26,274,033
629
1,257
1,886
3,772
7,543
7,543
15,088
37,719
26,198,596
1,523,544
-
Balances with other banks
Lendings to financial
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
-
56,615,892
485,406
24,865,165
-
-
-
-
-
-
-
-
-
-
-
-
96,717,533
15,188,733
-
388,872,017
129,756,383
11,735,390
Bills payable
6,164,867
6,164,867
Borrowings
23,399,389
6,835,486
8,124,609
6,011,959
17,473
33,338
373,987
266,670,061
245,932,687
7,632,326
4,244,037
7,425,298
766,693
669,020
1,523,544
13,093,292
8,537,773
1,736,269
-
32,361,856
Liabilities
Deposits and other accounts
Sub-ordinated loans
Other liabilities
2,750,000
-
-
-
-
-
-
-
739,952
-
1,262,585
2,500,000
-
579,998
12,001,039
582,518
21,237,283
82,198
140,391
945,994
25,985
-
334,579,723
259,513,038
28,007,974
10,838,514
28,680,054
882,229
1,183,398
1,685,946
3,788,570
-
54,292,294
(129,756,655)
28,607,918
14,026,651
68,037,479
14,306,504
10,551,992
11,407,346
4,749,203
38,715,850
Reserves
4,938,736
Unappropriated profit
6,676,380
Deficit on revaluation
of assets - net
250,000
-
35,595,406
Net assets
Share capital
-
-
3,961,328
54,292,294
32,361,856
81
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.8 Maturities of assets and liabilities - based on expected maturity of assets and liabilities of the bank
2013
Total
Upto one
month
Over one
month to
three months
Over three
months to
six months
Over six
months to
one year
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with
treasury banks
Balances with other banks
Lendings to financial institutions
32,331,083
32,331,083
-
-
-
-
-
-
-
-
1,451,558
1,451,558
-
-
-
-
-
-
-
-
-
-
22,158,840
17,103,259
5,055,581
Investments
146,686,716
19,622,173
77,346,433
7,532,546
8,154,701
18,506,841
13,662,786
1,238,343
622,893
Advances
135,495,032
27,179,491
33,559,124
13,768,149
9,392,824
34,329,005
5,185,294
6,504,275
3,639,485
28,937,914
3,840,168
12,431,496
427,145
2,423,670
3,668,938
5,944,729
193,229
8,539
6,155,222
14,555
29,110
43,664
87,327
230,867
174,655
341,413
786,157
4,447,474
26,221,917
898
1,793
2,689
5,378
10,755
10,755
21,511
53,483
26,114,655
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
-
-
128,423,537
-
21,774,193
-
20,063,900
-
56,746,406
-
-
399,438,282
101,543,185
24,978,219
Bills payable
6,540,213
6,540,213
Borrowings
16,566,175
1,094,339
9,005,014
4,670,543
11,616
248,880
411,917
296,556,991
27,968,358
14,640,373
14,011,764
26,916,477
212,620,616
398,403
-
8,298,771
5,110,557
1,937,385
-
32,499,514
Liabilities
Deposits and other accounts
Sub-ordinated loans
Other liabilities
Deferred tax liabilities
2,500,000
21,427,133
118,753
4,535,985
-
-
5,430,533
-
-
1,160,744
-
-
8,758,598
-
-
315,330
-
-
258,618
-
222,354
901,512
-
-
1,000
-
-
2,500,000
-
958,786
118,753
8,539
-
343,709,265
40,138,895
29,075,920
19,843,051
35,686,691
213,184,826
1,068,938
1,299,893
3,411,051
55,729,017
61,404,290
99,347,617
1,931,142
(15,622,791)
(156,438,420)
23,909,281
6,998,878
1,699,506
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
32,499,514
Net assets
Share capital
38,715,850
Reserves
7,044,339
Unappropriated profit
6,526,127
Surplus on revaluation
of assets - net
3,442,701
55,729,017
2012
Total
Upto one
month
Over one
month to
three months
Over three
months to
six months
Over six
months to
one year
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with
31,487,869
31,487,869
-
-
-
-
-
-
-
-
2,363,144
2,363,144
-
-
-
-
-
-
-
-
institutions
19,845,269
17,709,484
Investments
131,976,863
6,180,831
24,669,151
1,006,685
84,228,078
4,117,029
6,113,557
4,752,469
909,063
Advances
135,184,145
20,254,272
24,669,151
16,592,849
10,833,171
43,461,840
5,204,834
5,910,544
6,521,215
33,845,937
211,337
15,745,919
9,615,106
7,326,044
20,764
220,291
520,208
186,268
6,371,213
15,763
31,527
47,291
94,583
310,946
189,165
371,439
883,508
4,426,991
26,274,033
629
1,257
1,886
3,772
7,543
7,543
15,088
37,719
26,198,596
1,523,544
-
Lendings to financial
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
1,650,379
66,767,384
485,406
27,749,223
-
-
-
-
-
-
-
-
-
-
-
-
102,485,648
47,918,122
-
388,872,017
78,223,329
11,735,390
Bills payable
6,164,867
6,164,867
Borrowings
23,399,389
6,835,486
8,124,609
6,011,959
17,473
33,338
373,987
266,670,061
23,836,795
14,423,041
14,430,109
27,797,441
185,513,655
669,020
2,750,000
250,000
1,523,544
13,093,292
8,537,773
1,736,269
-
32,361,856
Liabilities
Deposits and other accounts
Sub-ordinated loans
Other liabilities
-
-
-
-
-
-
-
739,952
-
1,262,585
2,500,000
-
35,595,406
579,998
12,001,039
582,518
21,237,283
82,198
140,391
945,994
25,985
-
37,667,146
34,548,689
21,024,586
49,052,197
185,629,191
1,183,398
1,685,946
3,788,570
-
54,292,294
40,556,183
32,218,695
6,724,637
53,433,451
(137,711,069)
10,551,992
11,407,346
4,749,203
38,715,850
Reserves
4,938,736
Unappropriated profit
6,676,380
Deficit on revaluation
of assets - net
-
-
334,579,723
Net assets
Share capital
-
3,961,328
54,292,294
32,361,856
Financial statements and notes
treasury banks
Balances with other banks
82
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
40.9
Operational Risk
Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of
technology, processes, infrastructure, personnel and impact of external events.
The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management
framework is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental
risk. The CORC is chaired by the CEO, and CCRO is an active member of this forum.
All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues
and exceptions are reported to CORC and are also picked up by the independent Risk function for discussion at the
Country Risk Committee chaired by the CCRO. Disaster recovery procedures, business contingency planning, selfcompliance assurance and internal audits also form an integral part of the operational risk management process.
41
ISLAMIC BANKING BUSINESS
The Bank is operating with 10 Islamic Banking branches at the end of current period (December 2012: 14 branches).
41.1
Balance Sheet
Assets
Cash and balances with treasury banks
Balances with other banks
Due from Financial Institutions
Investments
Islamic Financing and Related Assets
Operating fixed assets
Other assets
Note
41.1.1
Liabilities
Bills payable
Due to Financial Institutions
Deposits and other accounts
Current Accounts
Saving Accounts
Term Deposits
Others
Deposit from Financial Institutions -Remunerative
Deposits from Financial Institutions-Non-Remunerative
Due to Head Office
Other liabilities
41.3
Net Assets
Represented by:
Islamic Banking Fund
Unappropriated/ Unremitted profit
Surplus / (deficit) on revaluation of assets - net
CONTINGENCIES AND COMMITMENTS
Remuneration to Shariah Advisor/Board
Charity fund
Opening balance
Additions during the year
Payments / utilization during the year
Closing balance
21
2013
2012
-------- (Rupees in '000) --------1,899,718
5,055,581
10,848,738
27,921,996
196,569
606,873
46,529,475
1,967,261
5,537,533
500,000
8,685,651
18,575,327
209,301
395,812
35,870,885
2,760
1,060,000
10,108
1,368,000
20,042,224
11,816,177
2,721,606
256
34,580,263
5,709,033
130,390
41,482,446
5,047,029
16,020,883
10,784,418
3,200,580
27,390
206,593
30,239,864
449,923
806,046
32,873,941
2,996,944
200,000
4,754,891
4,954,891
92,138
5,047,029
200,000
2,886,293
3,086,293
(89,349)
2,996,944
3,218
1,087
20,411
4,294
(23,634)
1,071
2,023
30,064
(11,676)
20,411
83
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
41.1.1
Islamic Mode of Financing
Murabaha
Musharaka
Diminishing Musharaka
Istisna
Musawammah
Others
41.1.1a
Musharaka
Financings/Investments/Receivables
41.1.1c
2,834,787
2,681,333
5,516,120
5,597,541
5,597,541
-
9,166,725
9,166,725
12,887,191
12,887,191
1,223,843
1,223,843
-
98,850
98,850
-
Profit and Loss
Profit / return earned on financings, investments and placements
Return on deposits and others dues expensed
Net spread earned
(Reversal) / provision against non performing financing
Net spread after provisions
Other income
Fees, commission and brokerage income
Other income
Total other income
Other expenses
Administrative expenses
Profit before taxation
189,383
189,383
172,016
172,016
3,328,123
(934,810)
2,393,313
(191,960)
2,201,353
3,008,214
(898,256)
2,109,958
172,890
2,282,848
654,097
755
765,288
181
654,852
2,856,205
765,469
3,048,317
(987,607)
(1,785,178)
1,868,598
1,263,139
Financial statements and notes
Others
Financings/Investments/Receivables
41.2
4,971,128
6,379,093
295,433
11,645,654
Musawammah
Financings/Investments/Receivables
41.1.1f
5,516,120
12,887,191
172,016
18,575,327
Istisna
Financings/Investments/Receivables
41.1.1e
11,645,654
5,597,541
9,166,725
1,223,843
98,850
189,383
27,921,996
Dimishing Musharaka
Financings/Investments/Receivables
41.1.1d
41.1.1a
41.1.1b
41.1.1c
41.1.1d
41.1.1e
41.1.1f
2013
2012
-------- (Rupees in '000) ---------
Murabaha
Financings/Investments/Receivables
Advances
Assets/Inventories
41.1.1b
Note
84
Standard Chartered Annual Report 2013
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
41.3
This includes acceptances of Rs.NIL (2012: Rs 661 million).
41.4
Profit & Loss distribution and Pool Management
The Bank manages following assets pools for profit and loss distribution:
a) Islamic Export Refinance Scheme (IERS) Musharakah Pool; and
b) Mubarabah Depositors Pool
a) IERS Musharakah Pool
Key features, risks, rewards and calculation of profit/loss of this pool are in compliance with the SBP IER Scheme and
the relevant circulars issued by SBP from time to time.
b) Mubarabah Depositors Pool
i) Key features and risk & reward characteristics
Deposits are accepted from customers on the basis of Qard for current accounts and Mudarabah for Saving and Term
deposits. Current Accounts are not part of the Mudaraba Pool hence no profit or loss is passed on to current account
depositors.
For deposits accepted on Mudarabah basis from depositors (Rab-ul-Maal), the Bank acts as Manager (Mudarib) and
invests the funds in Shariah Compliant modes of financings. Depositor’s (Rab-ul-Maal) share is distributed among the
various categories of depositors according to weightages declared for a month before start of the period for the relevant
categories.
In case of loss in a pool during the profit calculation period, the loss will be distributed among the depositors (remunerative)
according to their ratio of investment.
ii) Parameters used for allocation of profit, charging expenses and provisions
The profit of deposit pool is calculated on all the remunerative assets tagged to the Mudaraba Pool, by utilising the funds
from the pool after deduction of expenses directly incurred in earning the income of such pool, if any. The framework
and the methodology is duly approved by the Shariah Advisor. Resultant profit, net of Bank’s share as investor, is
distributed between Mudarib and Rab-ul-Maal based on sharing ratio declared before start of month.
The ratio for Mudarib and Rab-ul-maal was 50:50 in both general and special pools. No expense of general or administrative
nature or any provision against any non-performing asset of the pool is passed on to the pool except on the actual loss
/ write-off of such non-performing asset.
iii) Deployment of Mudaraba based deposits
The deposits and funds accepted under the above mentioned pools are provided to diverse sectors including Cement,
Chemical, Pharmaceuticals, Communication, Sugar, Textile, Agribusiness, Transport etc. as well as in Government of
Pakistan backed Ijarah Sukuks.
85
Notes to the Un-Consolidated Financial Statements
For the year ended 31 December 2013
Type of Pool
iv) Other information
General
Profit rate / weightage announcement frequency
Monthly
Monthly
513,889
59,959
Mudarib share
43.35%
21.27%
Mudarib Share transferred through Hiba (amount in 000)
78,817
81,014
Mudarib Share transferred through Hiba (%)
13.30%
57.47%
Average return on pool assets
10.35%
9.78%
5.87%
7.76%
Mudarib share (amount in 000)
Average return on deposits
42
Special
DATE OF AUTHORIZATION
These financial statements were authorized for issue in the Board of Directors meeting held on 05 March 2014.
Financial statements and notes
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
86
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Financial Position
Annexure-1
Statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above as required under sub-section (3) of
section 33A of the Banking Companies Ordinance, 1962 during the year ended 31 December, 2013.
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
1
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Faisal Khurshid
51 Attaturk Block New Garden Town
Lahore
35202-5455216-9
Mirza Khurshid Anwar
5,398,883
Interest/
Markup
2,254,369
Total
7,653,253
Amount Written off / Concession
Interest/
Markup
Principle
1,349,721
2,254,369
Total
Balance
(Gross)
3,604,091
2
Sh. Jawaid Iqbal
885 Shadman Colony No 1 Lahore
35202-5352357-1
Ghulam Rasool
4,296,752
1,656,341
5,953,093
859,351
1,656,341
2,515,692
3
Sheikh Muhammad Arshad
26 D Shadman Colony Faislabad
33100-5482564-9
Haji Ghulam Hussain
9,252,421
3,703,346
12,955,767
2,252,421
3,703,346
5,955,767
4
Shakoor Ahmed
41 F Shah Rukn E Alam Colony
Multan
330-51-055236
Ch. Nasir Uddin
5,588,619
3,161,525
8,750,144
2,088,619
3,161,525
5,250,144
5
Hafsa Ghous & Or Ghous Muhamad
768 Ravi Block Allama Iqbal Town
Lahore P O Box 54570
35202-2393659-6
Ghous Muhamad
1,376,960
389,321
1,766,281
137,696
389,321
527,017
6
Muhammad Iftikhar Rasool
112217 H Sanghar Wihara Inside Pak
Gate Multan
36302-0476647-3
Faiz Rasool
2,299,899
960,183
3,260,082
344,899
960,183
1,305,082
7
Rana Liaqat Ali
98 S Masoom Shah Road new
Multan
322-50-099156
Rana Rehmat Ali (Late)
4,491,837
1,875,874
6,367,711
891,837
1,875,874
2,767,711
8
Pervaiz Ahmed
H No 291 A Block 4 K A E C H S
Karachi
42201-7300421-3
Muhammad Umer Khan
7,400,000
3,211,293
10,611,293
2,590,000
3,211,293
5,801,293
9
Muhammad Farooq Azam
9/1 C Peoples Colony No 1 Faislabad
33100-3537494-7
Abdul Hameed
3,091,557
827,343
3,918,900
587,396
827,343
1,414,738
10
Hafeez-Ur-Rehman Babar
Ummar Rd Link Muslim Rd Gujaranwala
34101-9487815-7
Muhammad Shafi
2,459,364
568,656
3,028,020
368,905
568,656
937,561
11
Waseem Ul Haq
M 1 Cantt View Housing Scheme
Badian Road Lahore
35201-4495870-9
Aziz Ul Haq
800,815
575,612
1,376,427
-
575,612
575,612
12
Zulfiqar Ali
Raifal Rd Super Town Dha Cantt
Lahore
35201-5353720-9
Haji Allah Ditta
1,643,299
685,813
2,329,113
312,227
685,813
998,041
13
Pervez Pyar Ali & Or Malik Pyar Ali
222/2 Al Karim Town House Manaeckji St Garden East
42201-6420647-3
Pyar Ali Manji
1,555,639
460,265
2,015,904
255,639
460,265
715,904
14
Muhammad Sarwar
House No 740 Mohallah Koriarpur
Rawalpindi
37405-1754319-7
Sardar Muhammad
1,720,913
693,036
2,413,949
258,913
693,036
951,949
15
Muhammad Ramzan &/Or Shakeel
Ahmed
House No 856 St No 20 G-10/1 Isl
61101-3207983-7
Muhammad Yaar (Late)
948,260
741,513
1,689,773
-
741,513
741,513
16
Muhammad Musharaf
B 320/3 Faiza Avenue 11 C/1 North
Karachi
42101-9192087-1
Muhammad Arif (Late)
1,769,263
344,275
2,113,538
219,263
344,275
563,538
17
Tahir Fazil
21 C Muslim Town Lahore
35202-8918855-3
Bilal Tahir
16,779,545
13,866,080
6,711,822
13,866,080
30,645,625
18
Jutt Weaving Factory
P.390/10 St#08 Ayub Colony
439-93-180000
Muhammad Ramzan
19
Anwar Ullah Alvi
1445 B Peoples Colony No 1 Near
Pilot Ground Faislabad
33100-7614336-7
Jafar Ullah Alvi
20
Mussawir Hussain Bakhtiari
House No 40 A 1 St 16 Officers
Colony Cavelery Ground
35201-9371577-9
Masood Hussain Bakhtiari
20,577,902
946,877
359,847
1,306,724
189,377
359,847
549,224
1,862,270
928,414
2,790,684
655,270
928,414
1,583,684
24,656,459
10,281,880
7,656,459
10,281,880
17,938,339
34,938,339
21
Muhammad Rizwan Ali
House # Nw/455,Saidpur Scheme
Rawalpindi
37405-1750946-7
Sheikh Mohammad Tariq
2,860,999
667,246
3,528,244
94,999
667,246
762,244
22
Abdul Waheed Rawat
House No 746 St No 3 I -9/1 Ial
61101-3927767-5
Abdul Majeed
2,253,724
818,290
3,072,014
315,724
818,290
1,134,014
23
Tawakal Haider
House No 223 St No 5 Cavelery
Ground Lahore
35201-5924093-7
Ijaz Ali (Late)
3,109,839
1,273,012
4,382,852
359,839
1,273,012
1,632,852
24
Tariq Aziz Hussain
247 D Peoples Colony No 1 Near
Khazra Mosque Faislabad
33100-2941568-9
Muhammad Hussain
2,334,960
806,131
3,141,091
466,992
806,131
1,273,123
25
Marium Aftab
Flat No 5 H No 112 B Main Gulberg
Road Lahore
35202-2419157-8
Aftab Ahmed Sheikh (Late)
5,958,923
2,484,857
8,443,779
1,758,923
2,484,857
4,243,779
26
Muhammad Sohail
H No 73 St No 17 A Lane 3 Chaklala
3 Rawalpindi
37405-9017740-7
Muhammad Sharif
7,979,268
3,341,664
11,320,932
1,959,268
3,341,664
5,300,932
27
Syed Israr Hussain Shah
101 C Punjab Corporalince Housing
Society Lahore Cant
35201-4032477-7
Syed Muhammad Ishaq
Shah
973,633
406,838
1,380,471
194,726
406,838
601,564
28
Malik Shafqat Hayat
House No 252/3 St No 34 Z Block
Dha Lahore
35201-1326487-9
Malik Muhammad Hussain
8,843,200
4,648,940
13,492,140
5,575,200
4,648,940
10,224,140
29
Muhammad Javaid Iqbal
House No 3 W Z Madina Town
Faislabad
33100-3149056-3
Muhammad Tufail
5,155,498
2,169,831
7,325,329
955,498
2,169,831
3,125,329
30
Malik Imran Talib
Thokar Niaz Baig Bahir Wala Havali
Lahore
35200-1453620-5
Malik Israr Hussain
12,985,274
5,150,436
18,135,710
6,985,274
5,150,436
12,135,710
31
Tariq Javed Weaving Factory
House #P66 St#3 Afghana Bad#1
Dhakhana Gulberg
33100-0964965-1
Muhammad Aslam Sajid
1,240,138
496,140
1,736,278
186,021
496,140
682,161
32
Amjad Niaz Abbasi
House No 981 Zeeshan Colony
Cobbe Line Rawalpindi
37405-9916774-7
Raja Niaz Ahmad
10,100,000
4,204,819
14,304,819
3,938,700
4,204,819
8,143,519
33
Faisal Murad
Flat No 4701 1St Floor Defence
Garden Phase 1 Dha
42301-1225942-1
Shujaat Ullah Khan
1,793,562
747,827
2,541,388
492,962
747,827
1,240,788
34
Jameel Uddin
H No A 27 Blue No 3 Gulshan E Iqbal
Karachi
42101-1707727-3
Mohammad Anwar
9,413,343
3,929,583
13,342,926
2,823,943
3,929,583
6,753,526
35
Ghulam Haider
H#220-F Mohallah Shah RukhE-Alam
36302-5488123-9
Ali Muhammad
1,936,294
549,924
2,486,218
366,294
549,924
916,218
36
Muhammad Maqbool Abbassi
House No 334 St No 25 Sector I 10/4
Islamabad
61101-1833405-5
Wali Daad Khan Abbasi
2,309,306
964,109
3,273,416
309,306
964,109
1,273,416
37
Malik Zari Corporation
Jaranwala Road, Mandi Faizabad,
Sheikhupura
35402-2457966-1
Khushi Mohammad
5,077,152
613,076
5,690,228
77,152
613,076
690,228
18,359,837
6,971,249
25,331,085
7,343,935
6,971,249
14,315,183
7,995,317
3,334,098
11,329,414
2,095,317
3,334,098
5,429,414
4,199,211
1,573,499
5,772,711
1,499,211
1,573,499
3,072,711
5,799,357
2,376,367
8,175,724
2,184,357
2,376,367
4,560,724
18,297,956
6,343,205
24,641,160
11,647,956
6,343,205
17,991,160
38
M/S Muslim Khad Merchant
Ghala Mandi Bhalwalpur
38401-0338250-9
Muhammad Akram Shah
39
Saleem Ahmed
C 1 Ground Floor Sea Breez Super
Star Appartments
42301-3315174-9
Khawaja Nazeer Ahmed
40
Ikram Zari Corporation
Ghalla Mandi, Main Bazar, Farooqabad, Distt. Sheikhupura
35404-0903137-5
Muhammad Amin
41
Sheikh Muhammad Saeed
House No 249 B Gulgasht Colony
Multan
36302-0399617-9
Sheikh Fazal Ur Rehman
42
Afzaal & Company
Ghalla Mandi,Pattoki.Distt.Kasur.
35103-1369521-3
Ghulam Ali
87
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Interest/
Markup
Total
Amount Written off / Concession
Principle
Interest/
Markup
Total
Balance
(Gross)
43
Mohammad Nadeem
4 F 11/14 Nazimabad Near Nadra
Office Karachi
42101-1615920-3
Haji Abdul Rasheed
5,830,201
2,420,835
8,251,036
1,430,201
2,418,335
3,848,536
44
Rana Mazhar Iqbal
P 307 Street No 11 Taj Colony Islamia
College Faislabad
33100-9897671-7
Rana Muhammad Iqbal
2,500,000
1,030,428
3,530,428
450,000
1,030,428
1,480,428
45
Bhutta Spray Center
Ghala Mandi Bazar Pakpattan
36402-5044305-7
Sardar Muhammad
1,634,453
347,417
1,981,869
334,453
347,417
681,869
46
Samina Tabbasum
Plot No 620 Jblock G G Phase Vi
Dha Lahore
35202-7495307-3
Shahzad Sarwar Butt
2,396,877
992,370
3,389,248
479,367
992,370
1,471,738
47
Tariq Islam
H No 430 F Shah Rukn E Alam
Colony Mlt
36302-8516312-7
Chaudhary Muhammad
Islam
3,764,045
1,354,091
5,118,136
924,045
1,354,091
2,278,136
48
Javed Mehmood Khawaja
Khawaja House Khawaja Street
Sunny Bayers Saddiqui
36302-0468420-3
Mehmood Hassan
Khawaja
1,380,162
596,783
1,976,945
450,162
596,783
1,046,945
49
Raja Mehboob Hussain
H No 1165 St No 108 Sector 1-10/9 Isl
61101-7841117-1
Raja Shah Wali
9,571,194
1,436,992
11,008,186
449,000
1,436,992
1,885,992
50
Anas Mustafa
E / 65 Block F North Nazimabad
Karachi
42101-8565282-5
Hassan Abbas
1,191,916
988,235
2,180,152
303,366
988,185
1,291,552
51
Mohammad Amin Mugal
House No 385 St No 5 Allama Iqbal
Town Mehmoodabad
42301-0800937-9
Allah Ditta Mughal
3,455,327
1,597,092
5,052,419
1,298,407
1,597,092
2,895,499
52
Bilal Ahmed
Moh Neel Kot Near Masjid Anwar E
Madina Post Office
36303-5984959-9
Ahmed Bukhsh
53
Shahzad Imran Fabrics
P-84, Wakilian Wali Gali,St#4 Kachery
Bazar
33100-6281151-9
Muhammad Iqbal
54
Shahid Riaz Butt
Nasif Lodge Al Haram St Muradiya
Road Model Town S
34603-2350734-7
55
Farooq Ali Hashmi
47 D Zarar Shaheed Rod Al Faisal
Town Lahore
56
Bismillah Fertilizer
1,288,540
512,484
1,801,024
188,540
512,484
701,024
14,484,945
5,443,170
19,928,115
3,184,945
5,443,170
8,628,115
Muhammad Riaz Wasif
2,398,628
1,002,033
3,400,661
719,008
1,002,033
1,721,041
35201-2632344-1
Mohammad Siddique
Hashmi
4,479,833
1,867,055
6,346,888
1,478,345
1,867,055
3,345,400
Defence Road Kahna Kacha, Station
Chowk,Distt.Lahore
35202-2869318-5
Muhammad Sharif
1,693,374
434,376
2,127,750
338,674
434,376
773,050
Bashir And Sons Weaving Factory
Chak # 188/ R.B Chak Jhumra
Nalay Wala
33101-1710785-1
Nazar Ali Khan
2,951,271
1,111,391
4,062,662
451,271
1,111,391
1,562,662
Fayyaz Ahmed Khan Khakwani &Or Muha
Opp. Madarsa Minhaj Ul Quran,
Khanewal Road, Stree
36302-6662204-1
Shahnawaz Khan
Khakwani
4,799,220
2,836,341
7,635,561
959,220
2,836,341
3,795,561
59
Shahid Traders
301-B, Gulistan Colony Near Ideal
Bakers Faisalabad
33101-9673855-1
Shoukat Mehmood
Chatha
1,867,055
696,906
2,563,960
499,955
696,906
1,196,860
60
Sharif Brothers
Near Shell Pump Multan Road Mailsi
Distt Vehari
36602-5392867-1
Ahmed Yar
4,361,806
2,037,500
6,399,305
961,806
2,037,500
2,999,305
61
Tahir Nizam
House No 281/A Street 13 Chaklala
Scheme Iii Rawalpindi
37405-1459714-7
Nizamuddin
2,700,000
1,168,415
3,868,415
600,000
1,168,415
1,768,415
62
National Zarri Services
National Zarri Services Railway Road
Hasilpur
31203-3234558-7
Allah Ditta
6,998,323
3,354,081
10,352,404
1,889,547
3,354,081
5,243,628
63
Rizwan Ali
331-A Model Town Gujranwala
34101-2377821-9
Muhammad Akram
Chohan
6,330,354
2,655,436
8,985,790
1,830,354
2,655,436
4,485,790
64
Raja Habib Ur Rehman
House No.86-A Margalla Road
Sector F-6/2 Islamabad
61101-2988707-7
Raja Abdul Rehman
17,951,213
6,056,902
24,008,114
-
6,056,902
6,056,902
65
Muhammad Saleem Butt
H # 13,Motia Gali ,Tajbagh Lahore
Cantt.
35201-1568171-7
Muhammad Aslam Butt
5,212,448
2,176,956
7,389,404
1,012,448
2,176,956
3,189,404
66
Fayyaz Hashmat
House No.84 Block C Phase 1 Shah
Rukn-E-Alam Post
36302-0413985-1
Hashmat Ali
1,934,711
812,405
2,747,116
434,711
812,405
1,247,116
67
Ishfaq Spray Centre
Ishfaq Spray Centre Quaid-I-Azam
Road Kehror Pacca
36202-5571792-3
Syed Akbar Shah
972,239
364,863
1,337,102
272,239
364,863
637,102
68
Muhammad Waheed
H # P-777/389, Bazar # 3 ,St #17
,Razabad ,Faisal
33100-7758835-1
Muhammad Saeed
2,000,000
832,102
2,832,102
360,000
832,102
1,192,102
69
Raja Liaqat Ali Khan
D-472 Satellite Town Rawalpindi
37405-9023251-3
Namat Khan
12,781,905
8,335,308
21,117,213
2,781,905
8,335,308
11,117,213
70
Malik Azam Mahmood (Mf)
304 Sabzazar Schem Multan Road
Lahore
35202-2534191-9
Malik Ahmed Din
1,994,661
361,397
2,356,058
159,573
361,397
520,970
71
Ch. Iftikhar Traders
Ch.Iftikhar Traders Seet Pur Road Ali
Pur Distt. Muzzafar Garh
32301-4823138-1
Yaqoob Ali
3,333,196
1,252,101
4,585,297
973,196
1,252,101
2,225,297
72
Zafar Iqbal Farrukh
House # 61 ,Sector Cc ,Dha Lahore .
35201-9801764-5
Ch. Ali Mohammad
Cheema
8,347,983
1,256,746
9,604,728
200,000
1,256,746
1,456,746
73
Naya Sawera
Naya Sewera Mailsy Road Adda
Ameer Station Kehror Pacca.
36202-0927407-5
Allah Bachaya
1,787,375
718,562
2,505,938
267,375
718,562
985,938
74
Qartaba Agro Services
Qartaba Agro Services, Railway Road
Shujabad
36304-4348143-1
Muhammad Hanif
2,194,990
1,408,004
3,602,993
658,845
1,408,004
2,066,849
75
Kissan Traders
Ghalla Mandi Kot Samaba Tehsil &
Distt. Rahim Yar Khan
31303-7841533-5
Chaudhry Muhammad
Rafiq
6,298,895
2,357,857
8,656,752
2,456,568
2,357,857
4,814,425
76
Naseem Iqbal
P-10/233 ,Street # 8 ,Liaqatabad #
2 ,Faislabad.
33100-9030875-5
Khuda Bukhsh
793,829
606,534
1,400,363
223,829
606,534
830,363
77
Mirza Jalil Akhtar Jilo
House# 180/A, Street # 4, Officer
Colony, Cavalary
35201-9597755-3
Mirza Sher Zaman
9,950,586
3,792,149
13,742,736
1,990,117
3,792,149
5,782,267
78
Mohammad Badrut Tauhid
Dh-91 Block-L North Nazimabadkarachi
42401-2074777-7
Muhammad Shamshut
Tauhid
1,356,228
414,420
1,770,648
256,228
414,420
670,648
79
Muhammad Ikram-Ul-Haq
House No. 307, Block - M - Dha,
Lahore.
35202-9513390-7
Wali Muhammad
5,297,509
1,677,786
6,975,295
477,509
1,677,786
2,155,295
80
Ghulam Ali Asghar
House No.210, Street 7 Madni Larex
Colony, Shalima
35201-1375819-5
Iqbal Hussain Alvi
1,781,556
743,915
2,525,471
445,356
743,915
1,189,271
81
Mehmood Zafar Rao
H#114 G 3 Johar Town Lahore
35202-1885050-7
Rao Abdul Shakoor Khan
5,365,983
3,311,642
8,677,625
1,023,197
3,311,642
4,334,839
82
M/S Ali Traders
Chak Hota The & Distt Pakpattan
Sharif
36402-0824396-7
Muhammad Nawaz
2,792,976
967,995
3,760,971
837,892
967,995
1,805,887
83
Yousaf Traders
52/A Grain Market Mailsi
36602-2760150-3
Haji Muhammad Yousaf
2,489,809
954,694
3,444,503
489,809
954,694
1,444,503
84
Malik Liaqat Niaz Enterprises
825-42-43 Hafiz Jamal Road Mohallah Dawood Jehania
36302-2367532-9
Haji Khushi Muhammad
3,429,257
1,280,078
4,709,335
480,096
1,280,078
1,760,174
Financial statements and notes
57
58
88
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Interest/
Markup
Total
Amount Written off / Concession
Interest/
Markup
Principle
Total
Balance
(Gross)
85
Abdul Ghafoor &Or Muhammad Sarwar
House No. A-60, Officers Colony No.
1, Madina Town
33100-0828851-5
Chaudhary Khushi
Muhammad
2,840,370
1,185,175
4,025,545
397,652
1,185,175
1,582,827
86
Rana Muhammad Sadiq
H # 49 ,St # 3 ,Allama Iqbal Town
,Gujranwalla .
34101-9435281-3
Roshan Din
4,988,538
2,054,327
7,042,866
748,278
2,054,327
2,802,606
87
Chaudhry Muhammad Javed
Chatta Street Near Roras Road
Chowk Defence Road Sialkot
34603-4645290-9
Chaudhary Barkat Ali
2,798,829
1,167,003
3,965,832
698,829
1,167,003
1,865,832
88
Sheikh Muhammad Shahbaz
325-G.T Road S.A Rahman Stop
Daroghawala Lahore
35201-5966005-1
Muhammad Munir
1,995,669
832,144
2,827,813
385,669
832,144
1,217,813
89
Muhammad Shahid Chudhary
Ward#6 Kacha Road Farooq Abbad
Khana Lahore
35201-9194079-3
Nazar Muhammad
19,936,589
3,987,324
23,923,913
-
3,987,324
3,987,324
90
Malik Muhammad Asif
Flat No-121 Plot No-Fl-10 Marine Drive
Block-2 Clifton
42301-5148359-3
Malik Muhammad Usman
2,748,519
1,476,084
4,224,603
961,982
1,476,084
2,438,066
91
Qaiser Abbas Bukhari
39 D Gulberg 2 Lahore
35202-1382478-7
Ghulam Abbas Bukhari
5,999,982
3,291,984
9,291,965
105,000
3,291,984
3,396,983
92
Muhammad Farooq Butt
House # 303-A Iqbal Avenue Housing Society, Johar
35202-7233844-3
Muhammad Saleem Butt
3,590,938
1,499,340
5,090,278
718,188
1,499,340
2,217,528
93
Bhatti Agro Traders
Bhatti Agro Traders Bangala Moree
Jalal Pur Road Shujabad
36304-6300497-9
Ghulam Hussain
1,211,935
452,993
1,664,928
211,935
452,993
664,928
94
Amar Mahmood
House No. 896 - B Peoples Colony
No. 1 Faisalabad
33100-6720469-9
Mahmood Ul Hassan
9,534,238
2,068,833
11,603,071
953,423
2,068,833
3,022,256
95
Syed Habib Ur Rehman
278 - Eden Canal Villas, Lahore.
35202-0317712-9
Syed Aziz Ur Rehman
3,589,847
1,175,950
4,765,797
179,493
1,175,950
1,355,443
96
Imran Shaheen
House No. 14 - A/7 Ilim Din Street
Komboh Colony Chowk Ichra Lahore
35202-7025824-3
Malik Shaheen Asif
1,676,112
690,856
2,366,969
250,112
690,856
940,969
97
Muhammad Shabbir Nadeem
House No. 20 Street No. 3 Chowk
Qazzafi Behind Family Hospital
Hussain Bl.Multan. Multan
36302-6147199-7
Muhammad Din
2,809,551
1,171,544
3,981,095
809,551
1,171,544
1,981,095
3,815,359
98
Sheikh Abdul Quddus
H. No. 57, Street # 39, Sector F-10/4,
Islamabad
61101-2111008-1
Sheikh Abdul Rauf
19,787,931
3,815,359
-
3,815,359
99
Ellahi Fertilizer
59-Grain Market Rahim Yar Khan
31303-3296803-3
Abdul Ghafoor
1,489,685
555,844
2,045,529
371,685
555,844
927,529
100
Shaukat Ali
H 1974 B /1 Indus Road 1 Tariq Abad
Lalkurti Rawalpindi
37405-3737773-9
Mushtaq Ahmed
2,437,382
699,792
3,137,175
357,382
699,792
1,057,175
101
Muhammad Ejaz
173-B Gulberg Faislabad
33100-0611340-7
Movli Muhammad
1,796,192
688,675
2,484,867
269,429
688,675
958,104
102
Iftikhar Hussain
Famous Photo Stat Circular Road
Kachehry Bazar Faisalabad
33102-1818485-1
Muhammad Ali
2,478,090
1,037,569
3,515,659
493,090
1,037,569
1,530,659
23,603,290
103
Buland Iqbal
House # 76,Street# 24 Sector F-10/1
Islamabad
61101-1971018-3
Badar Ud Din
9,996,839
4,005,594
14,002,433
2,646,839
4,005,594
6,652,433
104
Khawaja Zafar Iqbal
House No 431/1 Mohallah Nasirabad
St No 15
37405-0252799-7
Khawaja Fazal Alahi
1,074,757
365,444
1,440,201
174,757
365,444
540,201
105
Asharf Unnisah
House # A-14, Bloclk-B North
Nazimabad
42000-0464198-2
Khalif Ullah
4,195,250
262,810
4,458,060
1,194,750
262,810
1,457,560
106
Muhammad Buland Iqbal Khan
Flat # 1 & 2 Plot C-3-C, Khayaban-ESehar Phase Vii D.H.A
42101-5538260-7
Wahid Ali Khan
4,175,848
1,803,821
5,979,669
1,175,848
1,803,821
2,979,669
107
Mumtaz Jehan Begum
House# 63 Street A Dha 26Th Street
Dha Phase 5 Karachi
42301-1560676-0
Ghani Dad Khan
29,389,269
6,269,547
35,658,816
-
6,269,547
6,269,547
108
Faisal Sajjad
B-88, Block 7, Kda Scheme 36
Gulistan-E-Jouhar
42101-4597055-1
Syed Sajjad Hussain
4,859,476
2,941,626
7,801,102
2,559,476
2,941,626
5,501,102
109
Nadeem Lerasab
House # 149, Street # 6 Askari-10,
Rawalpindi
37405-0210597-7
Nadeem Lerasab
4,186,465
871,302
5,057,766
-
871,302
871,302
110
Mohammad Yasin
House # 759, Street # 71 I-8/3
37405-0476976-3
Noor Mohammad
1,269,479
3,196,889
4,466,369
-
3,196,889
3,196,889
111
Muhammad Nisar Abbasi
House # 534, Street # 69, I-8/3
Islamabad
61101-1781239-5
Haji Muhammad Gul Khan
5,195,413
1,963,376
7,158,789
779,413
1,963,376
2,742,789
112
Anwar Haleem Khan
H#C-51 Block-L Norht Nazim Abad
Karachi
42000-8400411-9
Abdul Haleem Khan
14,908,570
6,129,073
21,037,643
3,708,570
6,129,073
9,837,643
113
Muhammad Almas Abbasi
House # 47,St # 26 Sector F-10/1
37405-7261074-5
Muhammad Aslam
14,877,496
5,049,942
19,927,438
-
5,049,942
5,049,942
114
Ghulam Nabi
8-Mohkam Park Hanjerwal Multan
Road Lahore
35202-7642359-7
Ameer Ali
2,187,334
821,201
3,008,535
328,100
821,201
1,149,301
115
Abdul Rehman
Shop No -56/N Commercial Center
Gulistan Colony No -2 Faisalabad
33100-4425974-9
Ghulam Sarwar
2,999,345
1,251,458
4,250,804
949,345
1,251,458
2,200,804
116
Muhammad Hanif
H No.15/177 Mohallah Chrigah Pura
Church Road Sialkot
34603-7046521-9
Muhammad Sharif
5,636,206
2,344,177
7,980,383
1,636,206
2,344,177
3,980,383
117
Rafaqat Ali
H No.12 50-A Lawrence Road
Lahore
35202-2473294-9
Karamat Ali
6,678,625
2,228,641
8,907,266
3,339,310
2,228,641
5,567,951
118
Muhammad Javaid
House# 4/19 M Block Gulberg Iii
Lahore Lahore
35202-7216284-9
Abdul Majeed
1,234,218
491,548
1,725,766
234,502
491,548
726,050
119
Mubashar Tanveer
Gali # 3 Mohallah Ahmed Pura
Gujranwala
34101-8177708-1
Zahoor Ul Din
1,807,309
605,681
2,412,990
271,096
605,681
876,777
120
Malik Muhammad Anjum
House # 24-C, Sector # 4-B, Khayaban-E-Sir Syed,
37405-2694082-3
Jamal Malik
1,875,532
785,416
2,660,948
625,532
785,416
1,410,948
121
Muhammad Tasnim
House No.133-S Block Model Town
Extension Lahore
35202-2203189-9
Haji Ghulam Nabi
3,191,934
1,354,521
4,546,455
957,581
1,354,521
2,312,102
122
Ghulam Mohi Ud Din Qadri
159-G, Dha, Lahore
35201-1303137-5
Ghulam Hussain Qadri
9,996,263
3,650,668
13,646,930
1,999,253
3,650,668
5,649,920
123
Abdul Majeed Weaving Factory
Behind Shama Cinema, Shama
Street, Shama Colony, Shaheen
Abad, G.T Road, Gujranwala
34101-2670005-9
Abdul Majeed
11,027,051
4,290,196
15,317,247
3,308,051
4,290,196
7,598,247
4,801,164
124
Razi Ud Din
H # 156-C, Jamil Abad Cantt Multan
36302-0405224-3
Nasir Ud Din Shams
8,587,787
3,083,377
11,671,164
1,717,787
3,083,377
125
Tariq & Brothers
Main Road, Ubaro Dist Ghotki Ghotki
45105-0156214-7
Umeruddin Arain
1,098,983
378,398
1,477,381
328,983
378,398
707,381
126
Al Haseeb Fabrics
H # 479/1 A, Street # 4 Ansar Colony
Block C Multan
36302-0365181-5
Inayat Muhammad Ansari
2,096,274
910,836
3,007,110
461,274
910,836
1,372,110
127
Javed Masood
H No-06 St 12 Allama Iqbal Road
Garhi Shahu Muhammad Nagar
35202-2272530-1
Sheikh Munir Hussain
340,191
10,032
350,224
416,254
136,588
552,842
89
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Interest/
Markup
Total
Amount Written off / Concession
Principle
Interest/
Markup
Total
Balance
(Gross)
128
Mohammad Hanif
Flat# A-7/31 3Rd Floor Rabia City
Block 18
42201-8108498-5
Abdul Sattar
495,545
129,228
624,773
495,545
165,838
661,384
129
Muhammad Azam
Engineering Manager M\S Eco Pack
Ltd.Plot,112 Phase 5 Industrial, State
Hattar District Hari Pur. Haripur
35202-2709453-9
Abdul Hameed
1,127,275
71,326
1,198,600
1,086,686
195,879
1,282,564
130
Mohd Iqbal Faruqie
Techno Worldwide Impex 1St Flr
Naqi Market Sh-E-Quaid-E-Azam
Lahore Lahore
35202-2954108-1
Muhammad Usman
Faruqie
707,817
6,894
714,711
775,896
92,182
868,078
131
Mr Afzaal Ahmad
House# 857-St-71 Bazaz Mohalla
Sadar Bazar Lahore Cantt Near Taj
Mehal Hotal
35201-8355945-7
Haji Fazal Ahmad
477,407
39,305
516,712
286,402
250,802
537,204
132
Mr Syed Shahab Uddin
Tp 11 6Th Flr Blk C Mall Square Appt
Dha Phase 5 Near Zamzama Park
54400-0440427-3
Syed Abdul Hai
499,447
170,825
670,272
499,447
170,825
670,272
133
M Zahoor Motiwala
House No-403-B Adamjee Nagar
Off Ameer Khusro/Johar Road Opp
Muhammadi Bakery Karachi Karachi
42201-4634614-1
Muhammad Amin
Motiwala
509,851
96,006
605,858
509,851
113,596
623,447
134
Zia Ur Rehman
S-154/1,Phase Ii, Defence Housing
Authority, Lahore Cantt
35201-1326403-1
Abdul Rehman Sheikh
484,729
30,592
515,321
484,729
129,733
614,462
135
Asmat Ullah Tunio
Appt.# 7Iqbal Heaven184/Fp.E.C.H.S
Block-2Karachi 603 Park Avenuebldg P E C H S Block 6 Shahrah
E Faisal
42201-9889075-3
Abdullah
463,832
57,262
521,094
465,862
85,318
551,180
136
Waseem Uraizee
13 Block 3Jinnah Coop Housing
Societyshaheed E Mil 13/3 Jinnah
Coop Housing Societyshaheed E
Millat Road
42201-1222046-1
Saeed Uddin Uraizee
489,813
78,880
568,693
468,874
89,296
558,170
137
Sohail Ahmed
10-B South Park Streetsunset Boulevardphase Ii D H Silever House Babri
Bldgi I Chundrigar Road karachi
42301-4963992-5
Salahuddin Ahmed
474,384
12,140
486,524
501,054
81,406
582,461
138
Laiq Ahmed
32/1 27Th Streetoff Khy Mujahid Phase V Extd H Aka D 18S I T E Industrial
Estate Supper Highway Karachi
42101-7970968-1
Mohammad Shafi
609,581
37,283
646,864
611,611
112,055
723,666
139
Nadeem Safar
199-1-Dblock 2 P E C H Skarachi 111 L
Block 2P E C H S Karachi
42201-3656606-1
Safar Ali
784,610
109,735
894,345
772,659
128,464
901,123
140
Junaid Ahmed
266 Wl.C.C.H.Slahore Canttlahore
124/4 Industrial Area kotlakhpat
Lahore
35201-6587367-9
Ijaz Ahmad
645,778
16,630
662,408
661,016
55,164
716,180
141
Muhammad Iqbal
24 Malik Taj Deenstreet Islampuralahore 1St Floor Naqi Market75
Shahrah E Quaid E Azam Lahore
35202-2954108-1
Muhammad Usman
Faruqie
747,742
17,943
765,685
982,844
161,500
1,144,344
142
Muhammad Ali Qureshi
6-U Block No 2P.E.C.H.Ssr Model
Schoolkarachi Stadium Road Karachi
42201-3658673-9
Iftikhar Ali Qureshi
513,353
41,841
555,194
522,021
87,345
609,367
143
Muhammad Ali Kapadia
E 2 4 Maymar Lake View Khekshan
Cilfton Karachi
42000-6907172-1
Peer Bahi De Kapadia
972,098
54,104
1,026,202
957,294
132,293
1,089,588
Syed Irfan Bokhary
76 Block H Model Town Lahore
35202-1723600-7
Syed Wajeeh Din Bukhari
461,113
11,857
472,970
476,887
79,106
555,992
Salahuddin Ahmed
10/B South Park Streetmain Sunset
Boulevardphase V Silver Reed Housenear Police H/Oi.I.Chunrigar Road
42301-8009574-5
Abdul Rasheed
999,303
24,922
1,024,225
999,225
163,410
1,162,635
146
Shahid Munir
154-1 B2Town Shiplahore Shop
2Khan Market 44Nishtar Road
Lahore
42301-1051907-9
Khawa Muneer Akhtar
719,269
88,985
808,255
665,329
128,239
793,568
147
Raja Pervez Akhtar
H No 0-854Feroz Puraopposite Naz
Cinemamurree Road Office No M
1890General Hospitalchaklala Road
Rawalpindi
37405-6908412-3
Shaukat Ali Raja
491,851
12,395
504,247
491,851
80,783
572,634
148
Shahabzada Saeed Ahmed
G-21/8Almani Town Housesblock-8
Cliftonkarachi 179/2A.M.21 Saddar
Karachi
42301-1070938-9
Sahabzada M Sharif
543,984
12,206
556,190
579,971
92,362
672,333
149
Syed Fazakkir Hussain
House No A 45/C5Th East Streetdefence Housing Soci 1St Floor ,
Kamran House34-A/2 Lalazar Drive
42301-8520895-3
Syed Tafzal Hussain
430,548
47,466
478,014
432,578
70,528
503,106
150
Muhammad Kamran Shahzad
25/E Block 2P E C H Skarachi D-14
Block J North Nazimabad Karachi
42101-8747661-1
Mohammad Tafi
435,970
10,800
446,769
439,299
71,760
511,059
151
Imtiaz Hussain Shah
58- Sikander Blockallama Iqbal
Townlahore 19-A Al Miraj Arcadechowk Choubarji Lahore
35202-2198207-5
Manzoor Hussain
324,530
-
324,530
500,673
72,293
572,966
152
Nasir Mehmood Rathore
H # 26-A/Hmadni Mohallahjhelum
Qureshi Plazarailway Roadg.T.S
Chowk Jhelum
37301-2337204-5
Mohammad Ibrahim
Rathore
484,824
13,345
498,169
461,004
75,897
536,901
153
Basharat Ahmed Tanveer
H # 115St # 1Askari 9Airport
Road,Chaklalarawalpin Head Office
68Tipu Road Rawalpindi
37405-2408065-5
Deen Muhammad
499,830
13,490
513,319
492,507
68,632
561,139
154
Sarmad Ejaz Gundra
H No.6/7 Gundra Housepeer Sehra
Roadsialkot Hico Buildingkashmir
Road Sialkot
34603-4178846-3
Haji Ijaz Hussain
490,520
-
490,520
500,099
54,996
555,095
155
Sheikh Irfan Munir
H No.272-D Peoples Colony No.1Faisalabad P-10/14 Sootar Mandimontgomery Bazar Faisalabad
33100-9045706-1
Late Sheikh Mohammad
Munir
492,420
-
492,420
490,592
81,755
572,348
156
Imran Jaffery
H No.46-B Block-A-Ijohar Townlahore 11-L Johar Town Lahore
35200-4768906-7
Nawazish Ali Jafri
489,217
76,326
565,543
491,247
91,750
582,996
157
Shahzad Ahmed
H No.21/361 Mohalla Raja Bazarsialkot Commissioner Road Sialkot
34603-6581332-9
Chaudhary Muhammad
Younas
498,256
15,205
513,460
492,455
69,060
561,515
158
Jam Saif Ali Khan
H No 351, 19Th Street,Khayaban E
Mujaheedphase V, 3-A,Double Carriage Way Main Korangi Road
44201-4458771-3
Nawab Jam Anwer Ali
478,203
24,858
503,061
438,590
73,858
512,447
Financial statements and notes
144
145
90
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Interest/
Markup
Total
Amount Written off / Concession
Principle
Interest/
Markup
Total
Balance
(Gross)
159
Zeeshan Qazi
H No 145/N Block No 2P.E.C.H.S
Sncc-9, Bl No 7/8Johar Road Machs
42201-4711152-3
Hassam Qazi Din
450,845
86,905
537,750
436,681
85,167
521,847
160
Muhammad Saleem Anjam
115 A, Govt Employs Colonymda
Chowk 2, Shadmanhigh Court
36302-7137001-3
Muhammad Siddique
486,425
66,803
553,228
486,425
80,436
566,861
161
Syed Najam Ul Hassan Rizwi
Ffc Lahore Trade Centre 11 Shahrah
Aiwan-E-Tijarat Lahore China Chowk
Lahore
35202-5140698-3
Anwar Hussain Rizwi
491,222
13,458
504,680
501,978
81,774
583,752
162
Rana Muhammad Mohsin Sarwar
Saffan Traders Room No 7 1St Floor
105 Mangal Mansion Asia Hotel Lakshmi Chowk Lahore
36302-5156339-7
Rana Muhamamda
Sarwar
499,984
84,518
584,503
499,984
84,518
584,503
163
Afzal Saeed Khan
Ist Floor B-64/E Prechs Blk - 13-B
Gulshan E Iqbal Near Al Mustafa
Hospt Karachi
42101-4066188-9
Rahim Shair Khan
976,807
177,430
1,154,237
976,807
177,430
1,154,237
164
Muhammad Abdullah
Broadway Travels 28/A Ground Floor
Empire Center 1-Abbot Road Near
Lakshami Chowk Lahore
35201-1363667-7
Muhammad Anwar
478,190
-
478,190
472,017
82,051
554,068
165
Ijaz Ahmad Awan
122-D - 7 Model Town Lahore
35202-8346686-1
Ali Ahmed Awan
525,891
36,595
562,486
525,891
115,085
640,976
166
Mohammad Adil Khan
F-74/A,S.I.T.E., P.O.Box 3647 Karachi
2578651
42401-4229617-9
Muhammad Fazal Khan
472,016
89,938
561,954
472,016
104,060
576,076
167
Muhammad A Kapadia
E-2-4 Memar Lake View Appt Kehkashan Clifton Blk 5 Karachi Karachi
42000-6907172-1
Peer Bahi De Kapadia
504,515
20,759
525,274
547,048
68,956
616,004
168
Ahsan Aftab
97/4 Z Block Dha Lahore
35201-1594232-7
Sheikh Aftab Hameed
415,502
15,270
430,772
429,302
75,963
505,265
169
Zaheer Maqbool
Mcb Call Centre 1St Flr,Sst Bld Beaumont Rd Karachi Karachi
35202-3594273-5
Maqbool Ur Rehman
421,080
-
421,080
390,720
116,147
506,867
170
Hanif Akbar Marwat
22-B/2 Main National Highway
Phase 2 Dha Kar
42301-1049078-3
Ghulam Akbar
252,209
-
252,209
499,174
141,178
640,352
171
Mian Amir Nisar
Hamza Agencies C-6 3Rd Fl, Ocean
Centre Opp Custom, House Karachi,
Karachi
42301-5455535-1
Nisar Ahmed Punnoo
261,380
-
261,380
722,448
167,990
890,438
172
Rana Mohsin Rasheed
Al Rehman Bulding Muree Road
Rawalpindi
37405-4777904-7
Rana Rasheed Ahmad
464,846
52,872
517,718
464,846
79,589
544,435
173
Syed Zeeshan Ahmad
House No 633 J Blk Phase 6 Dha
Lahore
35202-7565501-7
Matloob Ahmad
493,775
52,902
546,677
493,775
66,597
560,372
174
Sarwar Ali Shams
H 3/3 Sector 5 Korangi Industrial
Area Brooks Chowrangi Karachi
31202-7949167-5
Muhammad Shams Uddin
503,266
13,840
517,106
482,504
77,237
559,742
175
Rehana Begum
Fl B-9 Sehar Appartment Gulshan
E Iqbal Maskan Chorangi Bhayni
Heights Block 4
45504-5637294-4
Syed Ghulam Hussain
870,563
31,101
901,664
870,563
74,744
945,307
176
Sheeba Afghani
H No 90 St No Main Margala Road
F-8/2 F-8 Markaz Isb
61101-5472844-8
Abdul Latif Afghani
667,105
56,830
723,935
667,105
114,877
781,981
177
Raheel Ahmad-Alias-Mithoo
H No 63/2 St No 3 Saroba Garden 17
Km Ferozpur Rd Lahore
35102-5648695-7
Abdul Sattar
590,800
26,742
617,542
590,800
42,402
633,202
178
Shahrukh
72-B Industrial Area Kot Lakh Pat
Peco Chowk Lahore
35201-0460390-3
Sheikh Muhammad Ehsan
592,347
52,729
645,077
592,347
83,637
675,984
179
Ali Faisal
Pta Zonal Office, Wireless Compound
, Opp Jpmc Karachi
42101-1771671-5
Muhammad Ibrahim
859,296
-
859,296
850,860
117,446
968,305
180
Irfan Ali
A - 7 The Plaza 16 - A Block No 6
Pechs Main Shah-E-Faisal Pso Pump
Karachi
38405-2269087-1
Rehmat Ali
599,579
11,224
610,803
599,579
81,611
681,190
181
Muhammad Zia Ur Rehman
A-102 Block-13-A Railway Employees Cooperative Housing Society
Gulshan E Iqbal Educational World
School
41304-2316040-9
Alaudin Javed
480,124
10,828
490,952
452,919
58,101
511,020
182
Syed Zakir Raza Jafri
Ppl Pidc House
42501-1558499-7
Syed Qamar Raza Jafri
1,560,556
19,052
1,579,608
1,441,545
82,166
1,523,710
183
Hina Hamid
House No 1994,Muhalla Sector 11-E
Muslim Town, New Karachi,Karachi
42101-1718433-6
Hamid Hussain
595,455
28,658
624,113
595,455
62,185
657,640
184
Ansa Shahid
Building 5 St 22 Imam Ghazali Road
Makhanpura
35202-3932398-4
Shakeel Ahmed
689,879
-
689,879
673,696
101,959
775,655
185
Atta Abbas
H No R-547/9 Dastagir Society
Askari Ground F.B Area
42101-1622239-5
Syed Kaleem Haider
496,212
3,344
499,556
475,856
62,046
537,902
186
Ghulam Mustafa
H No E-907 St 1 Waqas Market
Nadrabad Bedian Road Lahore Cantt
Jinnah Public School
35302-1915687-7
Noor Muhammad
440,989
-
440,989
440,194
66,182
506,376
187
Khalid Hussain Bhutto
H No B - 18 Salhal Gdyh Pcsir Lab
Pcsir Lab Suparco Road Gulshan
Town
43204-8508600-1
Sikandar Ali
496,212
10,663
506,875
481,926
55,295
537,221
188
Abdul Ghaffar
House No 123 Mohallah Roshan Park
Chungi Multan Road Lahore
35202-2647388-3
Abdul Sattar
899,085
118,436
1,017,520
899,085
118,436
1,017,520
189
Syed Mustafa Hussain Rizvi
Flat No A1/3 2Nd Floor Gallant Court
Flat No 5 Main University Ibn-ESeena Hospital Complex Road Block
11 Gulshan-E-Iqbal
45203-8169737-7
Syed Ali Ahmed Shah Rizvi
550,000
67,443
617,443
550,000
67,443
617,443
190
Mian Hussain Barkat
176/185 H Block Model Town Lahore
Lahore
35202-2667810-9
Main Barkar Ali
600,507
9,590
610,097
622,731
159
622,890
191
Basharat A. Tanveer
Basharat Ahmad Tanveer ? Sd-115,
Askari 9 Chaklala Rawalpindi
Rawalpindi
37405-2408065-5
Deen Muhammad
497,008
-
497,008
508,018
170,372
678,390
192
Khawaja Ali Hamza
Kai International Pvt Ltd 35-C Empress Road Lahore Lahore
35202-4053949-5
Khawaja Muhammadarshad
473,420
15,520
488,940
471,844
156,225
628,069
193
Jam Saif Ali
Jam House 35 19Th Street Khayaban
E Mujahid Phase V, D H A Karachi
Karachi
44201-4458771-3
Nawab Jam Anwer Ali
488,124
37,024
525,147
488,124
73,152
561,275
91
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
194
M Shahzad Siddiqui
H No 74 St No 2 New Haseeb Shaheed Colony Near Al Aziz Masque
Faisalabad Faisalabad
33100-1027739-1
M Farooq Sadiquei
195
Syed Rafi Hasan Abidi
G-15 6Th Street Phase Vi D.H.A
Karachi.
502-69-245692
196
Shams-Ul-Arfeen
Venus Distributors (Pvt)Ltd 9/1, K-28,
Hawksbay Road Paf Maripur Karachi
Interest/
Markup
Total
Amount Written off / Concession
Interest/
Markup
Principle
Total
Balance
(Gross)
497,728
-
497,728
498,491
154,453
652,944
Syd Hasan Wazir Abidi
3,508,412
626,497
4,134,908
499,909
620,559
1,120,468
42101-0709680-1
Syed Safdar Ali
1,403,960
544,086
1,948,046
333,788
431,169
764,957
197
Zahid Hameed
Mustafa Arcade-Plot-No 119-A P-1
5Th Floor Smchs Society Karachi
517-55-080202
Ks Abdul Hameed
1,038,578
578,978
1,617,556
253,578
526,723
780,301
198
Abid Tanveer
H.No. B-1, 735, Street No, 2, Muslim
Town, Rawalpindi.
37405-0563650-5
Maktoob Ahmed
908,852
447,727
1,356,579
68,852
447,727
516,579
199
Muhammad Sajid Khan Sumbal
9-N, Model Town Extention Lahore.
35202-1080530-9
M Iqbal Khan Sunbul
1,815,392
668,937
2,484,329
215,392
522,469
737,861
200
Syed Tahir Ali
H.No. 750-Z, D.H.A., Lahore
35201-1587760-3
S Azhar Ali
11,376,442
4,401,175
15,777,616
3,776,442
3,784,831
7,561,273
201
Sheikh Mohammad Irfan
154-A Miraj Street Habib Ullah Road
Lahore.
35202-6507212-1
M Sharif
2,652,288
1,340,714
3,993,002
789,603
1,210,482
2,000,085
202
Rizwana Amin
House No 11-A, 2Nd Sunset Street
Phase-2, Dha, Karachi Dha Karachi
42301-7595696-2
Makdoom M Amin Fahim
23,374,549
12,092,689
-
10,690,174
10,690,174
203
Rizwana Amin
House 11-A 2Nd Sunset Street Phase-2 D.H.A. Karachi. Dha Karachi
42301-7595696-2
Makhdoom Amin Fahim
29,262,914
204
Muhammad Nadeem
H P-1247 Block-40 Bismillahpur
Samanabad Faisalabad Samanabad
Faisalabad
33100-3152825-3
Muhammad Shariff
205
Maqbool Hussain
H.No.3 Luchmen Street Lake Road
Lahore Samanabad
35401-7043968-9
206
Naeem Ahmed Qureshi
H.No B 301 Block L North Nazimabad
Karachi Near Medi Care Hospital
42101-6414518-9
207
Wajid Ali Shah
H.No 86 Allama Iqbal Road Lahore
Street Chah Baba Shaid Shah Gari
Shaw Lahore. Ghari Shahu
35202-8185788-3
208
Sh.Maqsood Ahmed
50/2 Main Kh.E Muslim Phase Vi
Near Misri Shah Mazar D.H.A Karachi.
Dha Karachi
209
M.Shahbaz
38/12 Ishra Road Usman Bazar
Ishra Lahore
210
Raja Muhammad Farraukh Nazir
H.No 409 Block Y D.H.A Lahore
211
Nasir Mehmood
Flat D-305, 3Rd Floor Beach Blessing
Clifton Block-2 Karachi
212
Muhammad Arshad
H.N E/149-B, Street 6 Yasrab Colony,
Lahore. Walton Road
35201-1346208-5
Not Found In Nadra Sys
213
Mohammad Shahid Qureshi
House A/35, Block-13/D-2, Gulshan-E-Iqbal, Karachi
42201-2473350-1
M Maqsood Qureshi
214
Aun Gain
16-Habib Manzil , Nawab Bahadur
Yar Jang Road , Soilder Bazar # 2 ,
Dha Karachi
42301-7334695-7
215
Muhammad Yaqoob Mirza
200-A Gulzar-E-Quaid Air Port Link
Road Chaklala Airport Employees
Cooperative Housing Scheme
216
Mansoor Wahid
217
35,467,238
53,950,153
22,590,959
22,590,959
1,222,305
147,990
406,046
554,036
24,687,240
772,990
449,315
Mohammad Ali
5,178,968
4,054,787
9,233,756
776,968
3,742,269
4,519,237
Abdul Majeed Qureshi
1,810,554
555,931
2,366,485
410,554
555,931
966,485
Muzaffar Ali Shah
963,368
469,255
1,432,623
192,368
419,462
611,830
42000-0429968-3
Sh Gulzar Ahmed
5,648,085
916,407
6,564,492
1,018,085
665,965
1,684,050
35202-2730416-3
Sirajuddin
5,639,000
4,163,663
9,802,663
1,639,000
3,814,475
5,453,475
35201-8925994-7
Raja Muhammad Nazir
1,420,324
567,970
1,988,294
355,081
785,473
1,140,554
42301-2051756-9
Ghulam Rasool
9,251,414
3,337,964
12,589,378
2,296,414
3,222,303
5,518,716
1,051,404
2,596,637
164,000
968,085
1,132,085
6,536,753
23,775,231
4,738,478
5,569,645
10,308,123
Tahir Ali Gain
1,610,400
887,311
2,497,712
320,400
756,830
1,077,231
37103-7247965-3
Karam Dad Mirza
9,676,816
4,738,387
14,415,203
1,676,816
4,220,354
5,897,170
House # 91/2 Saba Avenue Phase
5,Ext Dha Dha Karachi
42301-6437339-9
Abdul Wahid
10,842,539
5,343,804
16,186,343
2,710,539
4,686,940
7,397,479
Abdul Majeed
Flat No.G-202, 2Nd Floor Haroon
Royal City, Phz-1-B/17 Gulistan-EJohar Gulistan -E- Johar
42501-4727739-9
Abdul Hakeem
2,217,933
1,754,961
3,972,894
443,933
1,591,819
2,035,752
218
Amjad Pervaiz
House No-111, Sector # B-3, Saeedabad, Nazimabad
42401-4315321-3
Muhammad Latif
2,323,148
1,805,904
4,129,053
463,148
1,682,142
2,145,291
219
Abbul Hassan
Plot# Jm 135 Rose Garden 2Nd Floor
Flat#205 Burgari Road Soldier Bazar
No 2 Karachi Jamshed Quarters
42201-7617626-5
Sultan Al
5,242,808
3,303,159
8,545,967
996,808
2,929,075
3,925,883
220
Syed Ather Raza
House # 1402, Block-8, Federal B
Area, Gulshan -E- Iqbal
42101-6258462-9
Syed Mohsin Raza
1,142,483
401,972
1,544,455
227,953
334,118
562,070
221
Adnan Ghayyur Khan
Flat No F1, Park View Appartment
Block 10 Gulshan-E-Iqbal Safari Park
42401-9570919-5
Abdul Ghayyur Khan
1,292,821
642,192
1,935,013
322,821
584,115
906,936
222
Nasir Hussain
House D-18 K.D.A Overseas
Appartment Gulshan E Iqbal Gulshan
-E- Iqbal
42201-0543612-7
Gazanfar Ali
1,430,872
979,813
2,410,685
230,872
915,424
1,146,296
223
Umer Hayat
H # 113/A, Block # A, Unit # 4, Latifabad, Latifabad
41304-8473208-9
Mubarak Hussain
14,941,502
5,938,437
2,241,502
5,266,069
7,507,571
20,879,939
224
Muhammad Kashif Memon
House # B-260, Adamjee Nagar, Off
Tipu Sultan Road K.M.C.H.S.L
41302-9544346-7
Abdul Ghani Memon
6,385,086
756,752
7,141,838
-
800,827
800,827
225
Muhammad Yaqoob
B-1002, 10Th Floor Mehran Square
Frere Town Clifton Frere Town
42301-1022570-1
Abdul Sattar
4,562,300
2,068,298
6,630,598
922,300
2,037,046
2,959,346
226
Zafar Husain
Nat Industry, Near Pso Petrol Pump,
Kalsa Gt Road, Gujrat Gulshan
Colony
34201-7531375-1
Mohammed Khan
4,545,261
1,452,633
5,997,894
909,052
1,964,238
2,873,291
227
Omar Saboor
H # 20, Askari Villas Army Housing
Scheme-2, Phase-V, Dha, Gulistan
-E- Johar
42301-5345790-9
Abdul Saboor Choudhry
6,555,260
2,289,392
8,844,652
1,305,260
1,924,886
3,230,146
228
Meraj Ul Islam
H # 426, St # 21, Gaze Nigar Gulshan
-E- Iqbal
42301-9885122-3
Siraj Ul Islam
11,847,373
11,055,971
2,847,373
10,381,454
13,228,827
Kda Scheme # 1 House# St-1/B Kda
Scheme 1
42201-2743166-5
4,261,980
17,313,050
21,575,030
House# E-29/F-4 Allama Iqbal
Street# 2 Shaheen Colony Revenue
Record Lahore
35201-0359678-9
391,807
685,882
1,077,689
229
230
Atif Zubair
Muhammad Shamoon
22,903,344
Zubair Aslam
19,561,980
18,685,106
38,247,086
Muhammad Yousaf
1,959,039
778,936
2,737,975
Financial statements and notes
1,545,232
17,238,478
92
Standard Chartered Annual Report 2013
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
194
M Shahzad Siddiqui
H No 74 St No 2 New Haseeb Shaheed Colony Near Al Aziz Masque
Faisalabad Faisalabad
33100-1027739-1
M Farooq Sadiquei
195
Syed Rafi Hasan Abidi
G-15 6Th Street Phase Vi D.H.A
Karachi.
502-69-245692
196
Shams-Ul-Arfeen
Venus Distributors (Pvt)Ltd 9/1, K-28,
Hawksbay Road Paf Maripur Karachi
42101-0709680-1
Interest/
Markup
Total
Amount Written off / Concession
Interest/
Markup
Principle
Total
Balance
(Gross)
497,728
-
497,728
498,491
154,453
652,944
Syd Hasan Wazir Abidi
3,508,412
626,497
4,134,908
499,909
620,559
1,120,468
Syed Safdar Ali
1,403,960
544,086
1,948,046
333,788
431,169
764,957
197
Zahid Hameed
Mustafa Arcade-Plot-No 119-A P-1
5Th Floor Smchs Society Karachi
517-55-080202
Ks Abdul Hameed
1,038,578
578,978
1,617,556
253,578
526,723
780,301
198
Abid Tanveer
H.No. B-1, 735, Street No, 2, Muslim
Town, Rawalpindi.
37405-0563650-5
Maktoob Ahmed
908,852
447,727
1,356,579
68,852
447,727
516,579
199
Muhammad Sajid Khan Sumbal
9-N, Model Town Extention Lahore.
35202-1080530-9
M Iqbal Khan Sunbul
1,815,392
668,937
2,484,329
215,392
522,469
737,861
200
Syed Tahir Ali
H.No. 750-Z, D.H.A., Lahore
35201-1587760-3
S Azhar Ali
11,376,442
4,401,175
15,777,616
3,776,442
3,784,831
7,561,273
201
Sheikh Mohammad Irfan
154-A Miraj Street Habib Ullah Road
Lahore.
35202-6507212-1
M Sharif
2,652,288
1,340,714
3,993,002
789,603
1,210,482
2,000,085
202
Rizwana Amin
House No 11-A, 2Nd Sunset Street
Phase-2, Dha, Karachi Dha Karachi
42301-7595696-2
Makdoom M Amin Fahim
23,374,549
12,092,689
-
10,690,174
10,690,174
203
Rizwana Amin
House 11-A 2Nd Sunset Street Phase-2 D.H.A. Karachi. Dha Karachi
42301-7595696-2
Makhdoom Amin Fahim
29,262,914
204
Muhammad Nadeem
H P-1247 Block-40 Bismillahpur
Samanabad Faisalabad Samanabad
Faisalabad
33100-3152825-3
Muhammad Shariff
205
Maqbool Hussain
H.No.3 Luchmen Street Lake Road
Lahore Samanabad
35401-7043968-9
206
Naeem Ahmed Qureshi
H.No B 301 Block L North Nazimabad
Karachi Near Medi Care Hospital
42101-6414518-9
207
Wajid Ali Shah
H.No 86 Allama Iqbal Road Lahore
Street Chah Baba Shaid Shah Gari
Shaw Lahore. Ghari Shahu
35202-8185788-3
208
Sh.Maqsood Ahmed
50/2 Main Kh.E Muslim Phase Vi
Near Misri Shah Mazar D.H.A Karachi.
Dha Karachi
209
M.Shahbaz
38/12 Ishra Road Usman Bazar
Ishra Lahore
35,467,238
53,950,153
22,590,959
22,590,959
1,222,305
147,990
406,046
554,036
24,687,240
772,990
449,315
Mohammad Ali
5,178,968
4,054,787
9,233,756
776,968
3,742,269
4,519,237
Abdul Majeed Qureshi
1,810,554
555,931
2,366,485
410,554
555,931
966,485
Muzaffar Ali Shah
963,368
469,255
1,432,623
192,368
419,462
611,830
42000-0429968-3
Sh Gulzar Ahmed
5,648,085
916,407
6,564,492
1,018,085
665,965
1,684,050
35202-2730416-3
Sirajuddin
5,639,000
4,163,663
9,802,663
1,639,000
3,814,475
5,453,475
210
Raja Muhammad Farraukh Nazir
H.No 409 Block Y D.H.A Lahore
35201-8925994-7
Raja Muhammad Nazir
1,420,324
567,970
1,988,294
355,081
785,473
1,140,554
211
Nasir Mehmood
Flat D-305, 3Rd Floor Beach Blessing
Clifton Block-2 Karachi
42301-2051756-9
Ghulam Rasool
9,251,414
3,337,964
12,589,378
2,296,414
3,222,303
5,518,716
212
Muhammad Arshad
H.N E/149-B, Street 6 Yasrab Colony,
Lahore. Walton Road
35201-1346208-5
Not Found In Nadra Sys
213
Mohammad Shahid Qureshi
House A/35, Block-13/D-2, Gulshan-E-Iqbal, Karachi
42201-2473350-1
M Maqsood Qureshi
1,545,232
1,051,404
2,596,637
164,000
968,085
1,132,085
17,238,478
6,536,753
23,775,231
4,738,478
5,569,645
10,308,123
214
Aun Gain
16-Habib Manzil , Nawab Bahadur
Yar Jang Road , Soilder Bazar # 2 ,
Dha Karachi
42301-7334695-7
Tahir Ali Gain
1,610,400
887,311
2,497,712
320,400
756,830
1,077,231
215
Muhammad Yaqoob Mirza
200-A Gulzar-E-Quaid Air Port Link
Road Chaklala Airport Employees
Cooperative Housing Scheme
37103-7247965-3
Karam Dad Mirza
9,676,816
4,738,387
14,415,203
1,676,816
4,220,354
5,897,170
216
Mansoor Wahid
House # 91/2 Saba Avenue Phase
5,Ext Dha Dha Karachi
42301-6437339-9
Abdul Wahid
10,842,539
5,343,804
16,186,343
2,710,539
4,686,940
7,397,479
217
Abdul Majeed
Flat No.G-202, 2Nd Floor Haroon
Royal City, Phz-1-B/17 Gulistan-EJohar Gulistan -E- Johar
42501-4727739-9
Abdul Hakeem
2,217,933
1,754,961
3,972,894
443,933
1,591,819
2,035,752
218
Amjad Pervaiz
House No-111, Sector # B-3, Saeedabad, Nazimabad
42401-4315321-3
Muhammad Latif
2,323,148
1,805,904
4,129,053
463,148
1,682,142
2,145,291
219
Abbul Hassan
Plot# Jm 135 Rose Garden 2Nd Floor
Flat#205 Burgari Road Soldier Bazar
No 2 Karachi Jamshed Quarters
42201-7617626-5
Sultan Al
5,242,808
3,303,159
8,545,967
996,808
2,929,075
3,925,883
220
Syed Ather Raza
House # 1402, Block-8, Federal B
Area, Gulshan -E- Iqbal
42101-6258462-9
Syed Mohsin Raza
1,142,483
401,972
1,544,455
227,953
334,118
562,070
221
Adnan Ghayyur Khan
Flat No F1, Park View Appartment
Block 10 Gulshan-E-Iqbal Safari Park
42401-9570919-5
Abdul Ghayyur Khan
1,292,821
642,192
1,935,013
322,821
584,115
906,936
222
Nasir Hussain
House D-18 K.D.A Overseas
Appartment Gulshan E Iqbal Gulshan
-E- Iqbal
42201-0543612-7
Gazanfar Ali
1,430,872
979,813
2,410,685
230,872
915,424
1,146,296
223
Umer Hayat
H # 113/A, Block # A, Unit # 4, Latifabad, Latifabad
41304-8473208-9
Mubarak Hussain
14,941,502
5,938,437
2,241,502
5,266,069
7,507,571
20,879,939
224
Muhammad Kashif Memon
House # B-260, Adamjee Nagar, Off
Tipu Sultan Road K.M.C.H.S.L
41302-9544346-7
Abdul Ghani Memon
6,385,086
756,752
7,141,838
-
800,827
800,827
225
Muhammad Yaqoob
B-1002, 10Th Floor Mehran Square
Frere Town Clifton Frere Town
42301-1022570-1
Abdul Sattar
4,562,300
2,068,298
6,630,598
922,300
2,037,046
2,959,346
226
Zafar Husain
Nat Industry, Near Pso Petrol Pump,
Kalsa Gt Road, Gujrat Gulshan
Colony
34201-7531375-1
Mohammed Khan
4,545,261
1,452,633
5,997,894
909,052
1,964,238
2,873,291
227
Omar Saboor
H # 20, Askari Villas Army Housing
Scheme-2, Phase-V, Dha, Gulistan
-E- Johar
42301-5345790-9
Abdul Saboor Choudhry
6,555,260
2,289,392
8,844,652
1,305,260
1,924,886
3,230,146
228
Meraj Ul Islam
H # 426, St # 21, Gaze Nigar Gulshan
-E- Iqbal
42301-9885122-3
Siraj Ul Islam
11,847,373
11,055,971
2,847,373
10,381,454
13,228,827
Kda Scheme # 1 House# St-1/B Kda
Scheme 1
42201-2743166-5
4,261,980
17,313,050
21,575,030
House# E-29/F-4 Allama Iqbal
Street# 2 Shaheen Colony Revenue
Record Lahore
35201-0359678-9
391,807
685,882
1,077,689
229
230
Atif Zubair
Muhammad Shamoon
22,903,344
Zubair Aslam
19,561,980
18,685,106
38,247,086
Muhammad Yousaf
1,959,039
778,936
2,737,975
93
Un-Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Outstanding Libilities at Beginning of Year
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Principle
Interest/
Markup
Total
Amount Written off / Concession
Total
Balance
(Gross)
Interest/
Markup
Principle
231
Mumtaz Ali
Flat# B-7 Gulshan Plaza Block# 13-B
Gulshan-E-Iqbal Scheme 33
42201-0776542-5
Ghulam Ali
964,949
575,756
1,540,705
192,949
517,762
710,711
232
Khalid Mehmood
House # B-28 Gulshan -E-Iqbal Block
04 Near Discovery Store Karachi
Gulshan -E- Iqbal
42000-8180846-5
M. Ishaq
7,212,525
2,807,378
10,019,902
1,081,875
2,707,217
3,789,092
233
Saima Parveen
Appt No F/1 12Th East Street Phase 1
Near Over Head Tank Dali Staff Appt
Defence Karachi
42501-9432770-4
Muhammad Bashir
1,939,919
801,905
2,741,824
384,919
695,207
1,080,126
234
Muhammad Ahsan Ashraf
House # 87, Acn, Sector 1, I-9/1
37405-0218393-1
Ch Muhammad Ashraf
Hussain
6,418,946
3,338,134
9,757,080
2,018,946
2,680,264
4,699,210
235
Arshad Kamal
Flat # 210, Kamran Plaza, Block -3,
Gulshan-E-Iqbal. Gulshan -E- Iqbal
42201-3568979-5
Afsar Hussain Siddiqui
1,610,343
487,293
2,097,635
261,223
395,067
656,290
236
Muhammad Anees Abrahani
Flat # K-101,Haroon Royal City
Block 17 Gulistan E Jouhar Gulistan
-E- Johar
42201-4493750-5
Muhammad Younus
Abrahani
7,549,698
3,117,230
10,666,928
1,749,698
2,613,161
4,362,859
237
Jan Muhammad Jakhrani
A-304 Block 7 Sulistan-E-Jouhar
Near Saphora Goth Gulistan
-E- Johar
43104-8234370-9
Bingo Khan Jakhrani
4,498,673
1,986,856
6,485,529
841,978
1,722,303
2,564,280
238
Express Services
Off.No.I, 1St Floor, Ghous Plaza,
Murree Road, Rawalpindi
33302-3282351-3
Mr. Ch. Faqir Muhammad
2,842,151
2,156,535
4,998,687
426,151
1,995,901
2,422,052
239
Sadiq Hussain Jafri
Flat No 202 Plot No 38/C 10Th Badar
Commercial Street Dha V Ext Karachi
42301-6612200-1
Ashiq Hussain Hussaini
616,710
14,956
631,666
616,710
71,179
687,888
240
Mubashir Ahmed
House No. 24, Lane 1, Cavalry
Ground, Lahore
Mubashir Ahmed,
Proprietor
35201-1797775-7
M Badaruddin
87,652,500
6,774,150
4,426,650
56,252,500
6,774,150
3,026,650
241
Intergrain Commodities (Pvt.) Ltd
308, Al-Falah Building, The Mall,
Lahore
Mian Moeen-ud-Din,
Managing Director.
1,800,000
-
1,800,000
1,800,000
-
1,800,000
128,024,052
59,237,672
187,261,724
102,424,052
59,357,399
161,781,451
97,951,524
38,278,600
136,230,125
78,351,524
38,278,600
116,630,125
7,724,248
2,022,060
9,746,308
7,724,248
2,022,060
9,746,308
2,145,832
-
2,145,832
2,145,832
-
2,145,832
81,832,818
109,992,518
191,825,336
50,159,215
109,992,518
160,151,733
5,463,209
7,679,819
13,143,028
-
7,679,819
7,679,819
96,193,837
119,412,765
215,606,601
63,669,637
119,412,765
183,082,402
11,693,637
6,588,398
18,282,036
5,693,637
6,588,398
12,282,036
Nadeem Moin Mian,
Director.
242
243
Atlas Cables (Pvt.) Limited
Atlas Rubber & Plastic Ind. (Pvt.) Ltd
9Th Floor, Textile Plaza, Mumtaz
Hasan Road, Karachi
9Th Floor, Textile Plaza, Mumtaz
Hasan Road, Karachi
Sh. Arshad Javaid
Danish Javaid,
Director
42201-0255323-7
Sh. Arshad Javaid
Arshad Javaid,
Director
42201-0255322-9
Sh. Nazir Hussain
Adeel Javaid, Managing Director
42201-3385330-5
Sh. Arshad Javaid
Danish Javaid,
Director
42201-0255323-7
Sh. Arshad Javaid
Arshad Javaid,
Director
42201-0255322-9
Sh. Nazir Hussain
Aizaz Sarfaraz
244
A & A Services.
402, Al-Farid Centre, M. T. Khan
Road, Karachi
Adnan A. Sarfaraz,
42201-0180958-5
245
Refrigerator Manufacturing Co Pakistan
Ltd
D-98, S.I.T.E., Karachi
Aftab Ahmed Khan,
Managing Director
246
Al-Malik Carpets
29-A, Off Davis Road, Lahore
Mr. Viqar ahmed
Malik.
9-14000-299002-1
S/O. Bilal Ahmed Malik
Mrs. Saira Viqar Malik
271-86-240318
S/O. Nazir-Ul-Haq Sheikh
W/O. Viqar Ahmed
W/O. Haroon Nazir
Mr. Haroon Nazir
Mrs Zohra Nazir
247
Creative Textile
29-A, Off Davis Road, Lahore
Mr. Viqar ahmed
Malik.
9-14000-299002-1
S/O. Bilal Ahmed Malik
Mrs. Saira Viqar Malik
271-86-240318
S/O. Nazir-Ul-Haq Sheikh
W/O. Viqar Ahmed
W/O. Haroon Nazir
Mr. Haroon Nazir
Mrs Zohra Nazir
248
249
Ammar Textile
Bilal Textile
18 Km, Multan Road, Lahore
Old Address:P-834, Bilal
Plaza, Liaqat Road, Faisalabad
New Address: 102, Jail Road,
Faisalabad
Kh. Bilal Ahmad
352022-969902-7
S/O. Kh. Ghulam
Mohiuddin
Mrs. Samina Bilal
Ahmad
35200-1448248-4
W/O. Kh. Bilal Ahmad
Mian Muhammad
Salem Omer
33100-0902344-5
Mian Muhammad Omer
1,489,626,638
756,077,208
2,245,703,846
604,058,609
747,248,326
1,351,306,935
Financial statements and notes
Adeel Javaid,
Managing Director,
42201-3385330-5
Standard Chartered Bank (Pakistan) Limited
Consolidated
Financial Statements
For the year ended
31 December 2013
95
AUDITORS' REPORT TO THE MEMBERS
We have audited the annexed consolidated financial statements comprising consolidated statement of financial position
of Standard Chartered Bank (Pakistan) Limited and its subsidiary companies as at 31 December 2013 and the related
consolidated profit and loss account, consolidated statement of comprehensive income, consolidated statement of changes
in equity, and consolidated cash flow statement together with the notes forming part thereof, for the year then ended.
We have also expressed separate opinion on the financial statements of Standard Chartered Bank (Pakistan) Limited
and have reviewed its subsidiary company namely Standard Chartered Leasing Limited and Standard Chartered Services
of Pakistan (Private) Limited for the six months period ended 31 December 2013 except for Standard Chartered Modaraba
which was reviewed by other firm of auditors for the six months period to 31 December 2013 whose report has been
furnished to us and our opinion, in so far as it relates to the amounts included for such company, is based solely on the
report of such other auditors. These financial statements are responsibility of the Holding Company's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
Our audit was conducted in accordance with the International Standards on Auditing and accordingly included such tests
of accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements present fairly the financial position of Standard Chartered Bank
(Pakistan) Limited and its subsidiary companies as at 31 December 2013 and the results of their operations for the year
then ended.
KPMG Taseer Hadi & Co.
Chartered Accountants
Muhammad Taufiq
Financial statements and notes
Date: 05 March 2014
Karachi
96
Standard Chartered Annual Report 2013
Consolidated Statement of Financial Position
As at 31 December 2013
Note
ASSETS
Cash and balances with treasury banks
Balances with other banks
Lendings to financial institutions
Investments
Advances
Operating fixed assets
Intangible assets
Deferred tax assets - net
Other assets
2013
2012
-------- (Rupees in '000) ---------
4
5
6
7
8
9
10
11
12
32,331,167
1,608,932
22,158,840
146,380,251
146,238,554
6,172,744
26,222,840
29,146,856
410,260,184
31,487,972
2,700,218
19,845,269
131,741,003
144,918,272
6,381,584
26,275,598
1,447,553
34,257,981
399,055,450
13
14
15
16
11
17
6,540,213
17,291,175
296,377,146
2,500,000
260,651
30,339,110
353,308,295
56,951,889
6,164,867
23,399,389
266,598,571
2,750,000
44,718,555
343,631,382
55,424,068
Share capital
Reserves
Unappropriated profit
Attributable to equity holders of the bank
Non-controlling interest
18
19
Surplus on revaluation of assets - net of deferred tax
20
38,715,850
7,180,552
6,721,973
52,618,375
882,322
53,500,697
3,451,192
56,951,889
38,715,850
5,068,628
6,846,940
50,631,418
825,841
51,457,259
3,966,809
55,424,068
CONTINGENCIES AND COMMITMENTS
21
LIABILITIES
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Deferred tax liabilities - net
Other liabilities
NET ASSETS
REPRESENTED BY:
The annexed notes 1 to 42 and Annexure I form an integral part of these consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
97
Consolidated Profit and Loss Account
For the year ended 31 December 2013
Note
Mark-up / return / interest earned
Mark-up / return / interest expensed
Net mark-up / return / interest income
Reversal / (Provision) against non-performing loans and advances
Recovery of amounts written off
Provision for diminution in the value of investments
Bad debts written off directly
31,493,338
(12,687,175)
18,806,163
32,214,232
(12,337,997)
19,876,235
8.5 & 17.4
1,115,965
339,889
(291,198)
(239,868)
924,788
19,730,951
(3,083,284)
271,775
(441,903)
(325,187)
(3,578,599)
16,297,636
3,047,280
834
2,911,976
732,649
3,509,405
1,609,512
1,170,953
7.10.4
25
10,978
(822,669)
5,881,048
25,611,999
15,850
1,006,243
7,311,963
23,609,599
26
27
28
(8,966,028)
59,763
(337,549)
(9,243,814)
16,368,185
16,368,185
(14,045,547)
(51,659)
(190,038)
(14,287,244)
9,322,355
9,322,355
(3,735,531)
(21,136)
(1,912,199)
(5,668,866)
10,699,319
(2,338,939)
(21,136)
(916,416)
(3,276,491)
6,045,864
10,559,620
139,699
10,699,319
5,945,685
100,179
6,045,864
7.3
8.6.1
NON MARK-UP / NON INTEREST EXPENSES
Administrative expenses
Other reversals / (provisions) / asset write-offs
Other charges
Total non mark-up / non interest expenses
24
Extra-ordinary / unusual items
PROFIT BEFORE TAXATION
Taxation - current
- prior years'
- deferred
29
PROFIT AFTER TAXATION
Attributable to :
Equity holders of the bank
Non-controlling interest
-------- (Rupees) --------BASIC / DILUTED EARNINGS PER SHARE
30
2.73
1.54
The annexed notes 1 to 42 and Annexure I form an integral part of these consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
Financial statements and notes
22
23
Net mark-up / return / interest income after provisions
NON MARK-UP / NON INTEREST INCOME
Fees, commission and brokerage income
Dividend income
Income from dealing in foreign currencies
Gain on sale of securities - net
Unrealized gain on revaluation of investments
classified as held for trading
Other income
Total non mark-up / non interest income
2013
2012
-------- (Rupees in '000) ---------
98
Standard Chartered Annual Report 2013
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2013
2013
2012
-------- (Rupees in '000) --------Profit after tax for the year
10,699,319
6,045,864
(27,097)
9,484
15,863
(5,552)
10,681,706
6,056,175
10,542,007
139,699
10,681,706
5,955,996
100,179
6,056,175
Other comprehensive income:
Surplus / (deficit) on revaluation of 'Available for Sale' financial assets
Surplus / (deficit) on revaluation of fixed assets
Actuarial gain / (loss) on defined benefit plans
Deferred tax asset / (liability) on actuarial gain / (loss)
(i)
(ii)
Total comprehensive income for the year
Attributable to:
Equity holders of the bank
Non-controlling interest
(i) Surplus / deficit on revaluation of 'Available for Sale' securities-net of deferred tax is presented under a separate head below equity
as 'surplus / deficit on revaluation of assets' in accordance with the requirements specified by the State Bank of Pakistan vide its
BSD circular 20 dated 04 August 2000 and BSD circular 10 dated 13 July 2004.
(ii) Surplus/ deficit on revaluation of fixed assets-net of deferred tax is presented under a separate head below equity as 'surplus /
deficit on revaluation of assets' in accordance with the requirements of section 235 of the Companies Ordinance, 1984. The details
of movement in balance is disclosed in note 20.1 to these financial statements.
The annexed notes 1 to 42 and Annexure I form an integral part of these consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
99
Consolidated Cash Flow Statement
For the year ended 31 December 2013
Note
CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax for the year
Less: Dividend income
Adjustments for:
Depreciation
Amortization
Gain on disposal of fixed assets - net
Unrealized gain on revaluation of investments classified as held for trading - net
Other (reversals) / provisions / asset write offs
Provision for diminution in the value of investments
(Reversal) / provision against loans and advances - net of recoveries
(Increase) / decrease in operating assets
Lendings to financial institutions
Net investments in 'held for trading' securities
Advances
Other assets (excluding advance taxation)
Increase / (decrease) in operating liabilities
Bills payable
Borrowings from financial institutions
Deposits and other accounts
Other liabilities
Cash inflow before taxation
Income tax paid
Net cash generated from operating activities
CASH FLOW FROM FINANCING ACTIVITIES
(Repayment) / Issuance of sub-ordinated Term Finance Certificates -net
Dividend paid
Dividend paid to Non-controlling interest of the subsidiary
Net cash used in financing activities
(Decrease) / increase in cash and cash equivalents for the year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
31
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
Cash and Balances with treasury banks
Balances with other banks
16,368,185
(834)
16,367,351
9,322,355
9,322,355
494,900
52,758
(164,354)
(10,978)
(59,763)
291,198
(1,215,986)
(612,225)
15,755,126
486,603
139,165
(37,090)
(15,850)
51,659
441,903
3,136,696
4,203,086
13,525,441
(2,313,571)
2,704,327
(104,296)
(5,136,331)
(4,849,871)
360,702
2,261,499
(10,746,088)
(1,161,556)
(9,285,443)
375,346
(6,108,214)
29,778,575
(3,994,955)
20,050,752
30,956,007
(3,808,551)
27,147,456
1,588,078
4,037,525
30,723,987
2,818,023
39,167,613
43,407,611
(4,086,568)
39,321,043
(18,176,671)
834
(518,248)
336,184
(18,357,901)
(29,387,076)
(493,808)
37,673
(29,843,211)
(250,000)
(8,704,428)
(83,218)
(9,037,646)
(248,091)
34,188,190
33,940,099
2,050,800
(6,763,705)
(74,141)
(4,787,046)
4,690,786
29,497,404
34,188,190
32,331,167
1,608,932
33,940,099
31,487,972
2,700,218
34,188,190
The annexed notes 1 to 42 and Annexure I form an integral part of these consolidated financial statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
Financial statements and notes
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in 'available for sale' securities
Dividend income received
Net investment in fixed assets (including intangible assets)
Sale proceeds on disposal of operating fixed assets
Net cash used in investing activities
2013
2012
-------- (Rupees in '000) ---------
100 Standard Chartered Annual Report 2013
Consolidated Statement of Changes in Equity
For the year ended 31 December 2013
Share
Capital
Share
Premium
Statutory
Reserve
Unappropri
ated
Profit
Noncontrolling
Interest
Total
Total
--------------------------------------- (Rupees in '000) -------------------------------------Balance as at 31 December 2011
38,715,850
1,036,090
2,843,401
8,940,420
51,535,761
799,803
52,335,564
Total Comprehensive income for the year
Profit after tax for the year ended 31 December 2012
Other Comprehensive income
-
-
-
5,945,685
5,945,685
100,179
6,045,864
Actuarial gain on defined plan - net of tax
-
-
-
10,311
5,955,996
10,311
5,955,996
100,179
10,311
6,056,175
-
-
-
2,802
2,802
-
2,802
-
-
-
(95,212)
(92,410)
(95,212)
(92,410)
-
(95,212)
(92,410)
Transfer to statutory reserve
-
-
Cash dividend (Final 2011) at Rs. 1 per share
-
-
-
(3,871,585)
(3,871,585)
-
(3,871,585)
Cash dividend (Interim 2012) at Rs. 0.75 per share
-
-
-
(2,903,689)
(2,903,689)
-
(2,903,689)
Dividend paid to Non-controlling interest
-
-
-
Transferred from surplus on revaluation of
fixed assets - net of deferred tax
-
-
-
Transactions with owners, recorded directly in equity
Share based payment transactions (contribution from
holding company)
Payment against share based payment transactions (to
holding company)
Balance as at 31 December 2012
38,715,850
1,036,090
1,189,137
4,032,538
(1,189,137)
-
-
-
-
(74,141)
-
-
(74,141)
7,345
7,345
7,345
6,846,940
50,631,418
825,841
51,457,259
10,559,620
10,559,620
139,699
10,699,319
151,895
151,895
Total Comprehensive income for the year
Profit after tax for the year ended 31 December 2013
-
-
-
Surplus on revaluation of assets - net of deferred tax
Other Comprehensive income
Actuarial gain on defined plan - net of tax
139,699
151,895
-
-
-
(17,613)
10,693,902
(17,613)
10,693,902
(17,613)
10,833,601
-
-
-
59,741
59,741
-
59,741
Transfer to statutory reserve
-
-
(60,977)
(1,236)
(2,111,924)
(60,977)
(1,236)
-
-
(60,977)
(1,236)
-
Dividend paid to Non-controlling interest
-
-
-
Cash dividend (Final 2012) at Rs. 1.25 per share
-
-
-
(4,839,481)
(4,839,481)
-
(4,839,481)
Cash dividend (Interim 2013) at Rs. 1 per share
-
-
-
(3,871,585)
(3,871,585)
-
(3,871,585)
Transferred from surplus on revaluation of
fixed assets - net of deferred tax
-
-
-
5,357
5,357
-
5,357
6,721,973
52,618,375
Transactions with owners, recorded directly in equity
Share based payment transactions (contribution from
holding company)
Payment against share based payment transactions (to
holding company)
Balance as at 31 December 2013
38,715,850
1,036,090
2,111,924
6,144,462
-
-
(83,218)
882,322
(83,218)
53,500,697
Included in unappropriated profits is Rs. 970.880 million which is not available for distribution as cash or stock dividend. This is further explained in note 8.4 to these financial
statements.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
101
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
1.
STATUS AND NATURE OF BUSINESS
Standard Chartered Bank (Pakistan) Limited ("the Bank") was incorporated in Pakistan on 19 July 2006 and was granted
approval for commencement of banking business by State Bank of Pakistan, with effect from 30 December 2006. The
ultimate holding company of the Bank is Standard Chartered PLC, incorporated in England. The registered office is at
Standard Chartered Bank Building, I.I. Chundrigar Road, Karachi.
The Bank commenced formal operations on 30 December 2006 through amalgamation of entire undertaking of Union
Bank Limited and the business carried on by the branches in Pakistan of Standard Chartered Bank, a bank incorporated
by Royal Charter and existing under the laws of England. The scheme of amalgamation was sanctioned by State Bank
of Pakistan vide its order dated 4 December 2006. The Bank's shares are listed on all stock exchanges in Pakistan.
The Bank is engaged in the banking business as defined in the Banking Companies Ordinance, 1962 and has a total
number of 116 (2012: 130) branches in operation in Pakistan at 31 December 2013.
Standard Chartered Bank (Pakistan) Limited has the following three subsidiaries. All of them are incorporated in Pakistan.
•
Standard Chartered Leasing Limited
•
Standard Chartered Modaraba
•
Standard Chartered Services of Pakistan (Private) Limited
These financial statements are consolidated financial statements of Standard Chartered Bank (Pakistan) Limited and
its subsidiaries ("the Group").
2.
BASIS OF PREPARATION
2.1
Basis of presentation
The financial results of the Islamic banking branches have been consolidated in these financial statements for reporting
purposes. Key financial figures of the Islamic banking branches are disclosed in note 41 to these financial statements.
2.2
Statement of compliance
These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued
by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards (IFAS) issued by
the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Ordinance, 1984, provisions
of and directives issued under the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the
directives issued by State Bank of Pakistan. In case the requirements differ, the provisions of and directives issued under
the Companies Ordinance, 1984 and Banking Companies Ordinance, 1962 and the directives issued by the State Bank
of Pakistan shall prevail.
The Securities and Exchange Commission of Pakistan has approved and notified the adoption of International Accounting
Standard 39, 'Financial Instruments: Recognition and Measurement' (IAS 39) and International Accounting Standard 40,
'Investment Property' (IAS 40). The requirements of these standards have not been followed in the preparation of these
financial statements as the State Bank of Pakistan has deferred the implementation of these standards for banks in
Pakistan till further instructions. However, investments have been classified and valued in accordance with the requirements
of various circulars issued by the State Bank of Pakistan.
Financial statements and notes
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. One permissible form of trade related
mode of financing comprises of purchase of goods by the Bank from its 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 the
appropriate portion of mark-up thereon.
102 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2.3
Basis of measurement
These financial statements have been prepared under the historical cost convention, except that certain available for
sale, trading and derivative financial instruments have been measured at fair value whereas certain fixed assets are
stated at revalued amounts less accumulated depreciation and accumulated impairment losses, where applicable.
2.4
Use of estimates and judgments
The preparation of financial statements in conformity with approved accounting standards requires management to make
judgments, estimates and assumptions that effect the application of accounting policies and reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying 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 the revision and future periods if the revision affects
both current and future periods.
In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting
policies that have the most significant effect on the amounts recognised in the financial statements are described in the
following:
-
2.5
Note 8.5
Note 9 & 10
Note 10.2
Note 11
Note 21.6
Note 29
Note 33
Provision against non-performing advances
Valuation and depreciation / amortisation rates for fixed / intangible assets
Goodwill impairment testing
Deferred taxation
Derivative instruments
Income taxes
Employees' retirement defined benefit plans
Functional and presentation currency
These financial statements are presented in Pakistan Rupees, which is the Group’s functional currency. Except as
indicated, financial information presented in Pakistan Rupees has been rounded to the nearest thousand.
3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies
have been applied consistently to all years presented.
3.1
Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights
that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
Non-controlling interest is measured at their proportionate share in the net assets of the subsidiaries.
Material intra group balances and transactions are eliminated.
Acquisitions from entities under common control
Business combinations arising from transfers of interests in entities that are under the control of the shareholder that
controls the Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period
presented. For this purpose comparatives are restated where required. The assets and liabilities acquired are recognised
at the carrying amounts recognised previously in the combining entity's financial statements.
103
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Other acquisitions
Other business combinations are accounted for using the acquisition method. For acquisitions prior to 1 January 2009,
the cost of acquisition is measured as the fair value of the asset given, equity instruments issued and the liabilities incurred
or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identified assets acquired are fair
valued at the acquisition date, irrespective of the extent of any Non-controlling interest. The excess of cost of acquisition
over the fair value of identifiable net assets acquired is recorded as goodwill. Subsequently, any recoveries or losses to
fair value of net assets are taken to profit and loss account and disclosed in note 25 to these financial statements.
3.2
Cash and cash equivalents
For the purposes of cash flow statement, cash and cash equivalents comprise of cash and balances with treasury bank
and balances with other banks.
3.3
Investments
The Group classifies its investments as follows:
a) Held for trading
These are securities, which are acquired with the intention to trade by taking advantage of short term market / interest
rate movements and are carried at market value. The surplus / deficit arising as a result of revaluation at market value
is recognised in the profit and loss account. These securities are to be sold within 90 days from the date of their classification
as 'Held for trading' under normal circumstances, in accordance with the requirements specified by BSD Circular 10 dated
13 July 2004 by the State Bank of Pakistan.
b) Held to maturity
These are securities with fixed or determinable payments and fixed maturity that are held with the intention and ability
to hold to maturity. These are carried at amortised cost.
c) Available for sale
All 'regular way' purchases and sale of investments are recognised on the trade date i.e. the date that the Group commits
to purchase or sell the asset. Regular way purchases or sales are purchases or sales of investments that require delivery
of assets within the time frame generally established by regulation or convention in the market place.
3.4
Sale and repurchase agreements
Securities sold subject to repurchase agreements ('repos') remain on the balance sheet; the counterparty liability is
included in borrowings from financial institutions. Securities purchased under agreements to resell ('reverse repos') are
recorded as lendings to financial institutions. The difference between sale and repurchase price is treated as interest /
mark-up / return and accrued over the life of the underlying agreement using the effective interest method.
3.5
Advances
Advances are stated net of provision against non-performing advances. Specific and general provisions are made based
on an appraisal of the loan portfolio that takes into account Prudential Regulations issued by the State Bank of Pakistan
from time to time. Specific provisions are made where the repayment of identified loans is in doubt and reflect an estimate
of the amount of loss expected. The general provision is for the inherent risk of losses which, although not separately
identified, are known from experience to be present in any loan portfolio. Provision made / reversed during the year is
charged to the profit and loss account and accumulated provision is netted off against advances. Advances are writtenoff when there is no realistic prospect of recovery.
Financial statements and notes
These are investments that do not fall under the held for trading or held to maturity categories and are carried at market
value. The surplus / deficit arising as a result of revaluation at market value is kept in a separate account below equity.
104 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
When the Group is the lessor in a lease agreement that transfers substantially all of the risks and rewards incidental to
ownership of an asset to the lessee, the arrangement is presented within loans and advances.
Assets given under Ijarah contracts entered after 1 July 2008 are depreciated over the period of lease on a straight line
basis. The Ijarah arrangements are shown as financing under loans and advances.
Murabaha financings are reflected as receivables at the sale price. Actual sale and purchase is not reflected as the goods
are purchased by the customer as agent of the Bank and all documents relating to purchase are in customer's name.
Funds disbursed under Murabaha financing arrangements for purchase of goods are recorded as "Advance Against
Murabaha".
In Diminishing Musharaka based financing, the Group enters into a Musharaka based on Shirkat-ul-milk for financing
an agreed share of fixed asset (e.g. house, land, plant or machinery) with its customers and enters into a periodic rental
payment agreement for the utilization of the Bank's Musharaka share by the customer.
3.6
Operating fixed assets - Tangible
Owned
Operating fixed assets, other than land and buildings, are stated at cost less accumulated depreciation and accumulated
impairment losses thereon. Cost includes expenditure that is directly attributable to the acquisition of fixed assets. Land
and buildings are stated at revalued amounts less accumulated depreciation.
Subsequent costs are included in the asset's carrying amount or are recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. All other repairs and maintenance expenditures are charged to profit and loss account
during the financial period in which they are incurred.
Land and buildings are revalued by independent professionally qualified valuer(s). Surplus arising on revaluation is
credited to the 'surplus on revaluation of fixed assets' account (net of deferred tax). Under the provisions of the Companies
Ordinance, 1984, deficit arising on revaluation of fixed assets is adjusted against the balance in the above-mentioned
surplus account. The revaluation is carried out with sufficient regularity to ensure that the carrying amount does not differ
materially from that which would have been determined using fair value at the balance sheet date.
Accumulated depreciation on buildings, at the date of revaluation, is eliminated against the gross carrying amount of
buildings. The net amount is then restated to the revalued amount.
Surplus on revaluation of fixed assets (net of deferred tax) is transferred to unappropriated profit to the extent of incremental
depreciation charged on related assets.
Land is not depreciated. Depreciation on all other fixed assets is calculated using the straight line method to allocate
their depreciable cost or revalued amount to their residual values over their estimated useful lives.
The residual values and useful lives of fixed assets are reviewed, and adjusted (if appropriate) at each balance sheet
date.
Gains and losses on disposal of fixed assets are included in profit and loss account currently, except that the related
surplus on revaluation of fixed assets (net of deferred tax) is transferred directly to unappropriated profits.
Leased
Fixed assets held under finance lease are stated at the lower of fair value of asset and present value of minimum lease
payments at the inception of lease, less accumulated depreciation. Financial charges are allocated over the period of
lease term so as to provide a constant periodic rate of financial charge on the outstanding liability. Depreciation is charged
on the basis similar to owned assets.
105
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
3.7
Intangible assets
Goodwill
Goodwill represents the excess of cost of an acquisition over the fair value of the share of net identifiable assets acquired
at the date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment.
Computer software
Acquired computer software licenses are capitalised on the basis of costs incurred to acquire and bring to use the specific
software. These costs are amortised over their expected useful lives using the straight line method.
Acquired intangibles in business combination
Acquired intangibles in business combination that have finite lives are amortised over their economic useful life based
on the manner that benefits of the relevant assets are consumed.
3.8
Impairment of non-financial assets
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets, are reviewed at each reporting
date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs
to sell. In assessing value in use, the estimated pre-tax future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in
prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
3.9
Staff retirement benefits
For defined benefit plans, the net defined benefit liability /asset recognised in the balance sheet is the deficit or surplus,
adjusted for any effect of limiting a net defined benefit asset to the asset ceiling. The deficit or surplus is:
(a) the present value of the defined benefit obligation less;
(b) the fair value of plan assets (if any).
The present value of defined benefit obligation is calculated annually by independent actuaries by discounting the
estimated future cash flows using an interest rate equal to the yield on high-quality corporate bonds.
Actuarial gains or losses that arise are recognised in other comprehensive income in the period they arise. Service cost
and Net interest on net defined benefit liability / (asset) are also recognised in profit and loss account.
Defined contribution plan
The Group also operates a defined contribution gratuity scheme for all its management staff and a provident fund scheme
for all its permanent staff, contributing at 8.33 percent and 10 percent of basic salary respectively.
3.10
Foreign currency transactions
Transactions in foreign currencies are translated to Pakistan Rupees at exchange rates prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to
Pakistan Rupees at the exchange rate prevailing at that reporting date. Foreign currency differences arising on retranslation
are recognised in profit or loss.
Financial statements and notes
Defined benefit plan
The Group operates approved funded pension and gratuity schemes for all its non-management employees, and a
management pension scheme only for its existing pensioners.
106 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
3.11
Taxation
Income tax expense comprises of 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 or in other comprehensive income.
Current tax
Current tax is the expected tax payable on the taxable income for the year (using tax rates enacted or substantively
enacted at the balance sheet date), and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is provided for using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred
tax is not recognised on temporary differences relating to: (i) the initial recognition of goodwill; and (ii) the initial recognition
of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable
profit.
Deferred tax is measured at tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by 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. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
3.12
Revenue recognition
Mark-up / return on advances and investments is recognised on an accrual basis using the effective interest rate method.
The effective interest rate is the rate that exactly discounts the estimated future cash payments and receipts through the
expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount of the
financial asset or liability.
Where debt securities are purchased at a premium or discount, those premiums/ discounts are amortized through profit
or loss account over the remaining maturity, using the Effective Yield method.
Mark-up recoverable on classified loans, advances and investments is recognised on a receipt basis in accordance with
the requirements of Prudential Regulations issued by the State Bank of Pakistan and Securities and Exchange Commission
of Pakistan. Mark-up on rescheduled / restructured loans, advances and investments is also recognised in accordance
with the requirements of these Prudential Regulations.
The Group follows the effective interest method in accounting for the recognition of lease income. Under this method,
the unearned lease income i.e. the excess of aggregate lease rentals and the estimated residual value over the cost of
the leased assets is deferred and taken to income over the term of the lease, so as to produce a systematic return on
the net investment in lease. Unrealised lease income pertaining to non-performing leases is held in suspense account,
where necessary, in accordance with the requirements of the Non-Banking Finance Companies and Notified Entities
Regulations, 2008. Processing, front end fee, commitment fee, penal charges and commission are recognised as income
when realised.
The Group follows the finance method for recognising income on Ijarah contracts commencing prior to 30 June 2008
and accounted for as finance leases. Under this method the unearned income i.e. the excess of aggregate Ijarah rentals
(including residual value) over the cost of the asset under Ijarah facility is deferred and then amortised over the term of
the Ijarah, so as to produce a constant rate of return on net investment in the Ijarah. For Ijarah arrangements commencing
on or after 1 July 2008, Ijarah rentals are recognized as income on accrual basis, as and when rentals become due. In
case of Ijarah arrangements with staggered rentals, the income is recognised on a straight line basis over the Ijarah term.
Documentation charges, front-end fee and other Ijarah income are recognised as income on receipt basis. Unrealized
Ijarah income pertaining to non-performing Ijarahs is held in suspense account, where necessary, in accordance with
the requirements of the Prudential Regulations.
107
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Fees and commission income are generally recognised on an accrual basis when the service has been provided. Fees
and commission which in substance amount to an additional interest charge, are recognised over the life of the underlying
transaction on a level yield basis.
Dividend income is recognised when the right to receive income is established.
The cost from award credits for loyalty points earned on use of various products of the Bank is measured by reference
to their fair value and is recognised when award credits are redeemed.
Murabaha transactions are reflected as receivable at sale price. Actual sale and purchase are not reflected as the goods
are purchased by the customer as agent of the Bank. Profit on the sales revenue not due for payment is deferred by
recording a credit to 'Deferred Murabaha Income' account.
3.13
Derivative financial instruments
Derivative financial instruments are initially recognised at fair value and are subsequently remeasured at fair value. All
derivative financial instruments are carried as assets when fair value is positive and liabilities when fair value is negative.
Any change in the fair value of derivative financial instruments is taken to profit and loss account.
3.14
Provisions
Provisions for restructuring costs and legal claims are recognised when: (i) the Group has a present legal or constructive
obligation as a result of past events; (ii) it is more likely than not that an outflow of resources will be required to settle
the obligation; and (iii) the amount has been reliably estimated.
3.15
Fiduciary activities
The Group commonly acts in fiduciary capacities that result in the holding or placing of assets on behalf of individuals,
trusts, retirement benefit plans and other institutions. These assets and income arising thereon are excluded from these
financial statements, as they are not assets of the Group.
3.16
Segment reporting
3.17
Offsetting
Financial assets and liabilities are set off and the net amount presented in the balance sheet when, and only when, the
Group has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle
the liability simultaneously.
3.18
Subordinated liabilities
Subordinated liabilities are initially measured at fair value plus transaction costs, and subsequently measured at their
amortised cost using the effective interest method.
3.19
Non-current assets and disposal groups held for sale
Non-current assets and disposal groups comprising of assets and liabilities that are expected to be recovered primarily
through sale rather than continuing use are classified as held for sale. Immediately before being classified as held for
sale, the assets and components of disposal group are remeasured in accordance with the Group's accounting policies.
Thereafter, the assets and disposal group are measured at the lower of their carrying values and fair values less cost
to sell.
Financial statements and notes
A segment is a distinguishable component of the Group that is engaged either in providing products 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. The Group’s primary format for segment
reporting is based on business segments. A brief description of the products and services offered by different segments
of the Group is given in note 37 to these financial statements.
108 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
3.20
Share-based compensation
Standard Chartered PLC operates various share-based compensation plans which are accounted for as equity settled
share based payment transactions, regardless of inter group repayment arrangements. The cost for such share based
payment transactions is determined by reference to the fair value of options at the grant date. The fair value is determined
based on the market price or using an appropriate valuation technique. The cost is charged to profit and loss account
and credited to equity as a contribution from parent. The liability for these transactions which is based on the fair value
of these options at the settlement date is settled through debiting equity.
3.21
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. Acceptances are accounted for
as on-balance sheet transactions.
3.22
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 period / 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. There were no convertible dilutive potential ordinary shares in issue at 31 December 2013.
3.23
Dividend and appropriation to reserves
Dividend and appropriation to reserves, except appropriation which are required by law after the balance sheet date,
are recognised as liability in the Bank's financial statements in the year in which these are approved.
3.24
3.25
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 using effective
mark-up / interest rate method.
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 and other institutions, investments, advances, certain receivables, bills payable, borrowings
from financial institutions, deposit accounts 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.
3.26
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 reasonable
certainty exists for the Bank to settle the obligation. Charge to profit and loss account is stated net of expected recoveries.
3.27
New standards and interpretations not yet adopted
The following standards, amendments and interpretations of approved accounting standards will be effective for accounting
periods beginning on or after 01 January 2014:
-
IFRIC 21- Levies ‘an Interpretation on the accounting for levies imposed by governments’. IFRIC 21 is an interpretation
of IAS 37 Provisions, Contingent Liabilities and Contingent Assets. IAS 37 sets out criteria for the recognition of a
liability, one of which is the requirement for the entity to have a present obligation as a result of a past event (known
as an obligating event). The Interpretation clarifies that the obligating event that gives rise to a liability to pay a levy
is the activity described in the relevant legislation that triggers the payment of the levy.
109
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
-
Offsetting Financial Assets and Financial Liabilities (Amendments to IAS 32). The amendments address inconsistencies
in current practice when applying the offsetting criteria in IAS 32. Financial Instruments: Presentation. The amendments
clarify the meaning of ‘currently has a legally enforceable right of set-off’; and that some gross settlement systems
may be considered equivalent to net settlement.
-
Amendment to IAS 36 “Impairment of Assets” Recoverable Amount Disclosures for Non-Financial Assets. These
narrow-scope amendments to IAS 36 Impairment of Assets address the disclosure of information about the recoverable
amount of impaired assets if that amount is based on fair value less costs of disposal.
-
Amendments to IAS 19 “Employee Benefits” Employee contributions – a practical approach. The practical expedient
addresses an issue that arose when amendments were made in 2011 to the previous pension accounting requirements.
The amendments introduce a relief that will reduce the complexity and burden of accounting for certain contributions
from employees or third parties. The amendments are relevant only to defined benefit plans1 that involve contributions
from employees or third parties meeting certain criteria.
-
Annual Improvements 2010-2012 and 2011-2013 cycles. The new cycle of improvements contain amendments to
the following standards:
IFRS 2 ‘Share-based Payment’. IFRS 2 has been amended to clarify the definition of ‘vesting condition’ by
separately defining ‘performance condition’ and ‘service condition’. The amendment also clarifies both: how to
distinguish between a market condition ’. The amendment also clarifies both: how to distinguish between a market
condition and a non-market performance condition and the basis on which a performance condition can be
differentiated from a vesting condition.
-
IFRS 3 ‘Business Combinations’. These amendments clarify the classification and measurement of contingent
consideration in a business combination. Further IFRS 3 has also been amended to clarify that the standard does
not apply to the accounting for the formation of all types of joint arrangements including joint operations in the
financial statements of the joint arrangement themselves.
-
IFRS 8 ‘Operating Segments’ has been amended to explicitly require the disclosure of judgments made by
management in applying the aggregation criteria. In addition this amendment clarifies that a reconciliation of the
total of the reportable segment’s assets to the entity assets is required only if this information is regularly provided
to the entity’s chief operating decision maker. This change aligns the disclosure requirements with those for
segment liabilities.
-
Amendments to IAS 16’Property, plant and equipment’ and IAS 38 ‘Intangible Assets’. The amendments clarify
the requirements of the revaluation model in IAS 16 and IAS 38, recognizing that the restatement of accumulated
depreciation (amortization) is not always proportionate to the change in the gross carrying amount of the asset.
-
IAS 24 ‘Related Party Disclosure’. The definition of related party is extended to include a management entity that
provides key management personnel services to the reporting entity, either directly or through a group entity.
-
IAS 40 ‘Investment Property’. IAS 40 has been amended to clarify that an entity should: assess whether an
acquired property is an investment property under IAS 40 and perform a separate assessment under IFRS 3 to
determine whether the acquisition of the investment property constitutes a business combination.
Financial statements and notes
-
110 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Note
4
2013
2012
-------- (Rupees in '000) ---------
CASH AND BALANCES WITH TREASURY BANKS
In hand
- Local currency
- Foreign currencies
4.1
With State Bank of Pakistan in:
- Local currency current account
- Local currency current account-Islamic Banking
- Foreign currency deposit account
Cash reserve account (5% of FE 25)
Special cash reserve account (15% of FE 25)
Local US Dollar collection account
With National Bank of Pakistan in: - Local currency current account
2,547,678
2,386,435
2,640,672
2,934,902
12,136,173
1,120,999
12,693,677
1,362,417
3,305,342
9,200,051
89,112
1,545,377
32,331,167
2,742,536
7,666,714
94,268
1,352,786
31,487,972
157,589
337,360
1,451,343
1,608,932
2,362,858
2,700,218
4.1 This includes National Prize Bonds of Rs. 1.653 million (2012: Rs. 4.699 million).
5
BALANCES WITH OTHER BANKS
In Pakistan
- In current accounts
Outside Pakistan
- In current accounts
5.1
5.1 This includes balances of Rs.1,399.406 million (2012: Rs..2,310.442 million) held with other branches and subsidiaries of Standard
Chartered Group outside Pakistan.
6
Note
LENDINGS TO FINANCIAL INSTITUTIONS
Call money lendings
Placements
6.1
2013
2012
-------- (Rupees in '000) --------22,158,840
22,158,840
500,000
19,345,269
19,845,269
6.1 This represents placements with other branches and subsidiaries of Standard Chartered Group outside Pakistan at mark-up rates
ranging from 0.1 percent to 1.2 percent per annum (2012: 0.1 percent to 0.55 percent per annum), and are due to mature by March
2014.
2013
2012
6.2 Particulars of lending
-------- (Rupees in '000) --------In local currency
In foreign currencies
22,158,840
22,158,840
500,000
19,345,269
19,845,269
6.3 Securities held as collateral against lendings to financial institutions
Held by
bank
2013
Further
given as
collateral
Total
Held by
bank
2012
Further
given as
collateral
Total
------------------------------------ (Rupees in '000) ---------------------------------Market Treasury Bills
Pakistan Investment Bonds
-
-
-
-
-
-
111
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
6.3.1 The market value of securities held as collateral against lendings to financial institutions amounted to Rs. Nil (2012:Rs. Nil
million).
2013
Note
7
INVESTMENTS
Held by
bank
2012
Given as
collateral
Total
Held by
bank
Given as
collateral
Total
------------------------------------ (Rupees in '000) ----------------------------------
Held for trading securities
Market Treasury Bills
242,549
-
242,549
3,152,257
-
3,152,257
Pakistan Investment Bonds
841,046
-
841,046
653,528
-
653,528
31,122
-
31,122
13,259
-
13,259
-
102,982,489
94,197,619
5,963,886
100,161,505
31,168,109
17,674,933
18,845
17,693,778
Sukuks
Available for sale securities
Market Treasury Bills
7.6
102,982,489
Pakistan Investment Bonds
7.6
31,149,469
Ordinary shares of listed companies
7.7
662,061
-
662,061
662,061
-
Units / certificates of mutual funds
7.8
1,363
-
1,363
1,363
-
1,363
Term Finance Certificates -unlisted
7.9
285,025
-
285,025
285,025
-
285,025
Ordinary shares of unlisted companies
662,061
3,899
-
3,899
3,899
-
3,899
10,716,277
-
10,716,277
8,764,965
-
8,764,965
Pakistan Investment Bonds
58,268
-
58,268
111,359
-
111,359
Sukuk and Ijarah Bonds - unlisted
58,210
-
58,210
59,225
-
147,050,418
125,579,493
Sukuk and Ijarah Bonds - unlisted
7.11
18,640
7.6 &7.10
Held To Maturity securities
Investments at cost
147,031,778
18,640
5,982,731
59,225
131,562,224
Provision for diminution in
the value of investments
7.3
Investments (net of provisions)
(787,551)
146,244,227
18,640
(787,551)
(496,353)
146,262,867
125,083,140
5,982,731
-
131,065,871
(496,353)
10,978
15,850
-
15,850
Surplus on revaluation of
held for trading securities - net
7.10.4
10,978
-
(Deficit) / surplus on revaluation of
available for sale securities - net
106,252
154
106,406
659,364
(82)
659,282
146,361,457
18,794
146,380,251
125,758,354
5,982,649
131,741,003
Financial statements and notes
Total Investments - net
112 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
7.2
Investments by segment
Note
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
GoP Ijarah Sukuk Bonds
Fully paid up ordinary shares
Listed companies
Unlisted companies
Bonds and Term Finance Certificates - unlisted
Sukuk and Ijarah Bonds
Term Finance Certificates
Other investments (mutual funds)
Total investment at cost
Less: Provision for diminution in the value of investments
Investment (net of provisions)
Surplus on revaluation of held for trading securities - net
Surplus / (deficit) on revaluation of available for sale securities - net
Total Investments - net
7.3
2013
2012
-------- (Rupees in '000) --------103,225,038
32,067,423
9,222,399
103,313,762
18,458,665
7,203,224
662,061
3,899
662,061
3,899
1,583,210
285,025
1,363
1,634,225
285,025
1,363
147,050,418
(787,551)
146,262,867
10,978
106,406
146,380,251
131,562,224
(496,353)
131,065,871
15,850
659,282
131,741,003
496,353
291,390
(192)
291,198
787,551
54,450
442,167
(264)
441,903
496,353
444,316
285,025
58,210
787,551
444,508
51,845
496,353
Particulars of provision for diminution in the value of investments
Opening balance
Charge for the year
Reversals
Net charge
Closing Balance
7.3.1
7.3.1 The details of provision held against investments are as follows:
Ordinary shares / units - available for sale
Term Finance Certificates -unlisted
Sukuk bonds - held to maturity
7.9
7.4
Investments include securities having book value of Rs. 18.640 million (2012: Rs. 18.845 million) pledged with the State
Bank of Pakistan as security to facilitate T.T. discounting facility to the Bank, including an amount earmarked against the
facilities allocated to branches now in Bangladesh.
7.5
Market Treasury Bills and Pakistan Investment Bonds are eligible for discounting with the State Bank of Pakistan.
2013
Quality of 'Available for Sale' securities
Note
Rating
Cost
2012
Market
value
Rating
(Rupees in '000)
7.6
Cost
Market
value
(Rupees in '000)
Federal Government Securities
Market Treasury Bills
Unrated
102,982,489
102,863,086
Unrated
100,161,505
100,669,397
Pakistan Investment Bonds
Unrated
31,168,109
31,284,265
Unrated
17,693,778
17,918,680
Unrated
9,191,277
9,296,290
Unrated
7,189,965
7,115,437
143,341,875
143,443,641
125,045,248
125,703,514
GoP Ijarah Sukuk Bonds
7.10.3
113
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
7.7
Note
Particulars of shares held - listed
2013
2012
(Number of shares)
Rating
2012
Market
value
Cost
Rating
(Rupees in '000)
Market
value
Cost
(Rupees in '000)
-
7,500
Sakrand Sugar Mills Limited
Unrated
-
-
Unrated
-
36
-
2,800
Bawany Sugar Mills Limited
Unrated
-
-
Unrated
-
30
-
11,000
Dadabhoy Cement Limited
Unrated
-
-
Unrated
-
28
-
4,800
Khurshid Spinning Mills
Unrated
-
-
Unrated
-
-
-
3,500
Taj Textile Mills Limited
Unrated
-
-
Unrated
-
-
-
1
Kohinoor Textile Mills Limited
Unrated
-
-
Unrated
-
-
Unrated
-
-
Unrated
-
-
AA+/A1+
-
-
AA+/A1+
-
121
-
2
-
1,646
18,916,023
18,916,023
Sind Provincial Cooperative Bank
Allied Bank Limited
Agritech Limited
D
662,061
662,061
662,061
662,061
-
(441,311)
662,061
220,750
Provision for diminution in the value - note 7.3.1
D
662,061
662,061
-
662,061
662,276
(441,400)
662,061
220,876
All shares are ordinary shares of Rs. 10 each except otherwise mentioned.
2013
Rating
2013
2012
(Number of Units)
3,447
17,235
2012
Market
value
Cost
Rating
(Rupees in '000)
National Investment (Unit) Trust
AM2-
(Rupees in '000)
1,363
10,047
1,363
10,047
Provision for diminution in the value - note 7.3.1
1,363
Market
value
Cost
AM2-
1,363
6,950
1,363
6,950
10,047
-
(103)
1,363
6,847
Bonds and Term Finance Certificates - unlisted
7.9
2013
2012
(Rupees in '000)
Term Finance Certificates of Rs.5,000 each
147,000
147,000
138,025
138,025
285,025
285,025
Provision for diminution in the value - note 7.3.1
2013
7.10 Sukuk and Ijarah Bonds of Rs.5,000 each
Note
Rating
Cost
(285,025)
-
-
285,025
2012
Market
value
Rating
(Rupees in '000)
Cost
Market
value
(Rupees in '000)
Wapda Sukuk Bonds
7.10.1
Unrated
200,000
195,955
Unrated
250,000
245,215
Pakistan International Airlines (PIA) Sukuk Bonds
7.10.2
Unrated
1,325,000
1,325,000
Unrated
1,325,000
1,325,000
1,525,000
1,520,955
1,575,000
1,570,215
7.10.1 Wapda Sukuk Bonds carry mark-up rates 0.25% below 6 months KIBOR. The principal and profit is payable semi-annually with maturity in July
2017.
7.10.2 PIA Sukuk bonds carry mark-up rates 1.75% above 6 months KIBOR. The principal and profit is payable semi-annually with maturity in October
2014.
7.10.3 GoP Ijarah Sukuk Bonds carry mark-up rates of 0.30% below weighted average yield of 6 months treasury bills. The profit is payable semi-annually
with principal redemption at maturity falling due between May 2014 and July 2017.
Financial statements and notes
Agritech Limited
Azgard Nine Limited
114 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
7.10.4 Unrealized gain / (loss) on revaluation
of investments classified as held for trading
2013
2012
-------- (Rupees in '000) ---------
Market Treasury Bills
Pakistan Investment Bonds
GoP Ijarah Sukuk Bonds
1,185
9,422
371
10,978
13,887
1,792
171
15,850
7.11 Particulars of shares held - unlisted
2013
2012
(Number of shares)
573,769
573,769
2013
2012
2013
2012
(Rupees in ‘000)
Rating
Pakistan Export Finance Guarantee Agency Limited
Unrated
Unrated
Unrated
Unrated
3,004
3,004
Chairman : Mr S.M.Zaeem
8
8
Society for Worldwide Interbank Fund Transfer
Provision for diminution in the value of investments - note 7.3.1
8
ADVANCES
Note
Loans, cash credits, running finances, etc.
- In Pakistan
- Outside Pakistan
895
895
3,899
3,899
(3,004)
(3,004)
895
895
2013
2012
-------- (Rupees in '000) --------136,142,528
136,142,528
144,477,050
144,477,050
5,034,744
5,034,744
4,485,415
4,732,132
4,732,132
4,267,084
15,873,794
6,890,046
22,763,840
168,426,527
(22,187,973)
146,238,554
8,659,942
7,353,551
16,013,493
169,489,759
(24,571,487)
144,918,272
8.1.1 In local currency
In foreign currencies
156,115,954
12,310,573
168,426,527
157,553,574
11,936,185
169,489,759
8.1.2 Short term (for upto one year)
Long term (for over one year)
118,231,354
50,195,173
168,426,527
109,346,340
60,143,419
169,489,759
Net investment in Finance Lease / Ijarah Finance
- In Pakistan
- Outside Pakistan
8.2
Ijarah contracts accounted for under IFAS 2
8.3
Bills discounted and purchased (excluding treasury bills)
- Payable in Pakistan
- Payable outside Pakistan
Advances - gross
Provision for non-performing advances
Advances - net of provision
8.1
8.5
Particulars of advances - Gross
115
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
8.2
Net investment in Finance Lease
2013
Later than
one
and less
than
five years
Not later
than one
year
2012
Over five
years
Later than
Not later
one
than one year and less than
five years
Total
Over five
years
Total
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------Lease rental receivable
Residual value
Minimum Lease payments
Financial charges for future periods
Present value of minimum lease payments
8.3
2,033,727
2,595,345
-
4,629,072
1,952,225
2,488,439
187
4,440,851
299,118
823,759
-
1,122,877
197,666
843,761
380
1,041,807
2,332,845
3,419,104
-
5,751,949
2,149,891
3,332,200
567
5,482,658
(390,004)
(327,201)
-
(717,205)
(403,318)
(347,201)
(7)
(750,526)
1,942,841
3,091,903
-
5,034,744
1,746,573
2,984,999
560
4,732,132
Assets under Ijarah arrangements
The following is a statement of assets leased out subsequent to July 1, 2008 that have been accounted for under Islamic Financial Accounting Standard 2, 'Ijarah' (IFAS 2):
2013
Cost
Tangible
8.4
2012
Accumulated
depreciation
Net book
value
Cost
Accumulated
depreciation
Net book
value
------------------------------------- (Rupees in '000) ---------------------------------
Plant, machinery and equipment
3,905,207
1,602,686
2,302,521
3,517,476
1,282,497
2,234,979
Motor vehicles
3,683,462
1,500,568
2,182,894
3,102,235
1,070,130
2,032,105
7,588,669
3,103,254
4,485,415
6,619,711
2,352,627
4,267,084
Advances include Rs. 24,938.439 million (31 December 2012: Rs. 27,473.845 million) which have been placed under non-performing status as detailed below:
2013
Classified Advances
Domestic Overseas
General Provision
Domestic Overseas
Total
Provision Held
Domestic Overseas
Total
--------------------------------------------------- (Rupees in '000) ------------------------------------------------526
757,894
2,441,610
21,738,408
24,938,438
-
526
757,894
2,441,610
21,738,408
24,938,438
24,938,438
-
24,938,438
39
178,276
1,178,601
20,270,595
21,627,511
560,462
22,187,973
-
39
178,276
1,178,601
20,270,595
21,627,511
560,462
22,187,973
39
178,276
1,178,601
20,270,595
21,627,511
560,462
22,187,973
-
39
178,276
1,178,601
20,270,595
21,627,511
560,462
22,187,973
2012
Classified Advances
Domestic Overseas
Category of classification
OAEM
Substandard
Doubtful
Loss
Total
Provision Required
Domestic Overseas
Total
Provision Held
Domestic Overseas
Total
--------------------------------------------------- (Rupees in '000) ------------------------------------------------52,273
1,044,811
2,586,592
23,790,169
27,473,845
-
52,273
1,044,811
2,586,592
23,790,169
27,473,845
27,473,845
-
27,473,845
General Provision
11,204
192,907
1,271,511
22,523,562
23,999,184
572,303
24,571,487
-
11,204
192,907
1,271,511
22,523,562
23,999,184
572,303
24,571,487
11,204
192,907
1,271,511
22,523,562
23,999,184
572,303
24,571,487
-
11,204
192,907
1,271,511
22,523,562
23,999,184
572,303
24,571,487
At 31 December 2013, the provision requirement has been reduced by Rs. 1,493.662 million (31 December 2012: Rs. 1,294.899 million) being benefit of Forced Sale Value
(FSV) of commercial, residential and industrial properties (land and building only) held as collateral, in accordance with the State Bank of Pakistan Prudential Regulations
(PR) and SBP Circular 10 dated 21 October 2011. Increase in accumulated profits amounting to Rs. 970.880 million due to the said FSV benefit is not available for distribution
of cash and stock dividend.
Financial statements and notes
Category of classification
OAEM
Substandard
Doubtful
Loss
Total
Provision Required
116 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
8.5
Particulars of provision against non-performing advances:
2013
Specific
General
2012
Total
Specific
General
Total
----------------------------------- (Rupees in '000) -----------------------------------Opening balance
Charge for the year
Reversals
Amounts written off
Other movements
Closing balance
8.6
23,999,184
1,012,124
(2,300,125)
(1,288,001)
(869,541)
(214,131)
21,627,511
572,303 24,571,487 21,703,117
68,781
1,080,905
4,832,764
(80,622) (2,380,747) (1,692,589)
(11,841) (1,299,842) 3,140,175
(869,541)
(923,626)
(214,131)
79,518
560,462 22,187,973 23,999,184
Particulars of write offs
8.6.1 Against provisions
Charged and written off during the year
8.6.2 Write-offs of Rs. 500,000 and above
Write-offs of below Rs. 500,000
8.7
641,494 22,344,611
36,309
4,869,073
(105,500) (1,798,089)
(69,191) 3,070,984
(923,626)
79,518
572,303 24,571,487
2013
2012
-------- (Rupees in '000) --------869,541
239,868
1,109,409
610,947
498,462
1,109,409
923,626
325,187
1,248,813
590,710
658,104
1,248,813
Details of loans written-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 writtenoff loans or any other financial relief of five hundred thousand rupees or above allowed to a person(s) during the year
ended 31 December 2013 is given in Annexure 1.
8.8
Particulars of loans and advances to directors, associated companies, etc.
(i) Debts due by directors, executives or officers of the Group or any of
them either severally or jointly with any other persons
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
(ii) Debts due by companies or firms in which the directors of the Group are interested
as directors, partners or in the case of private companies as members
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
(iii) Debts due by subsidiary companies, controlled firms, managed modarabas and
other related parties
Balance at beginning of the year
Loans granted during the year
Repayments
Balance at end of the year
2013
2012
-------- (Rupees in '000) --------1,732,083
48,464
(485,807)
1,294,740
-
102,395
603,329
(585,757)
119,967
2,274,604
44,218
(586,739)
1,732,083
-
126,737
28,109
(52,451)
102,395
117
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
8.9
Contractual rentals receivable- Ijarah contracts commencing 1 July 2008
2013
Not later
than one
year
Later than
one
and less
than
five years
2012
Over five
years
Total
Later than
Not later
one
than one year and less than
five years
Over five
years
Total
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------Rentals receivable
Residual value
Total future Ijarah
payments receivable
9
1,977,585
226,991
2,731,520
757,729
79
-
4,709,184
984,720
1,998,551
92,930
2,872,782
747,888
700
-
4,872,033
840,818
2,204,576
3,489,249
79
5,693,904
2,091,481
3,620,670
700
5,712,851
Note
OPERATING FIXED ASSETS
Capital work-in-progress
Property and equipment
9.1
2013
2012
-------- (Rupees in '000) ---------
9.1
9.2
Capital work-in-progress
Civil works
Advance payment towards office equipment and software
Consultants' fee and other charges
9.1.1
68,780
6,103,964
6,172,744
128,781
6,252,803
6,381,584
38,535
30,245
68,780
5,636
120,624
2,521
128,781
9.1.1
This amount includes Rs. 12.57 million (2012: Rs. 8.76 million) which pertains to advance given against purchase of computer software by Standard Chartered Modaraba.
9.2
Property and equipment
Cost / Valuations
At 1 January 2013
Additions during the year
Transfers / write offs
Deletions
At 31 December 2013
Net book value
Rate of depreciation
Cost / Valuations
At 1 January 2012
Additions during the year
Transfers / write offs
Deletions
At 31 December 2012
Accumulated Depreciation
At 1 January 2012
Charge for the year
Transfers / write offs
Deletions
At 31 December 2012
Net book value
Rate of depreciation
571,030
571,030
571,030
-
3,753,113
(146,685)
3,606,428
3,606,428
-
261,731
19,800
(1,123)
280,408
855,624
76,792
(1,528)
(33,631)
897,257
1,256,790
82,881
(132,476)
(185)
1,207,010
2,716,226
395,954
(224,241)
(138,790)
2,749,149
99,850
2,822
(4,463)
98,209
9,514,364
578,249
(359,368)
(323,754)
9,409,491
66,759
22,642
(664)
88,737
230,932
80,218
(876)
(10,562)
299,712
693,840
74,961
(75,391)
(157)
693,253
2,225,949
293,693
(222,079)
(136,742)
2,160,821
44,081
23,386
(4,463)
63,004
3,261,561
494,900
(299,010)
(151,924)
3,305,527
191,671
597,545
513,757
588,328
35,205
6,103,964
6.67%
6.67%
6.67%-10% 14.28% - 33.33%
33.33%
2012
Leased
Furniture,
Buildings on
Buildings
on
hold
fixtures and
Freehold
Leasehold
Leasehold improvements
Vehicles
Total
freehold
office
Land
Land
land
land
equipment
------------------------------------------------------------ (Rupees in '000) -------------------------------------------------------------------571,030
571,030
571,030
-
3,753,113
3,753,113
3,753,113
-
261,663
68
261,731
832,728
22,896
855,624
1,280,649
80,926
(104,723)
(62)
1,256,790
3,441,810
276,182
(934,104)
(67,662)
2,716,226
67,350 10,208,343
65,719
445,791
(1,038,827)
(33,219)
(100,943)
99,850
9,514,364
44,394
22,365
66,759
152,707
78,225
230,932
641,392
96,406
(43,906)
(52)
693,840
2,952,913
274,673
(934,288)
(67,349)
2,225,949
62,352
14,934
(33,205)
44,081
3,853,758
486,603
(978,194)
(100,606)
3,261,561
194,972
-
624,692
6.67%
55,769
33.33%
6,252,803
562,950
490,277
6.67%-10% 14.28% - 33.33%
Financial statements and notes
Accumulated Depreciation
At 1 January 2013
Charge for the year
Transfers / write offs
Deletions
At 31 December 2013
2013
Leased
Furniture,
Buildings on
Buildings
on
hold
fixtures and Vehicles
Freehold
Leasehold
Leasehold improvemen
Total
freehold
office
Land
Land
land
land
ts
equipment
------------------------------------------------------------ (Rupees in '000) --------------------------------------------------------------------
118 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
9.3
The Group's owned land and buildings were revalued by an independent accredited professional valuer, Iqbal A. Nanjee & Co. (Private)
Limited. The valuation performed by the valuer was based on active market prices, adjusted for any difference in the nature, location
or condition of the specific land and building. The date of revaluation was 31 December 2009. The revaluation resulted in a net surplus
of Rs. 3,599.739 million over the book value. A similar valuation was carried out last year and no material differences in market value
(from the carrying value) were found.
If the owned land and buildings were measured using the cost model, the carrying amounts would have been as follows:
2013
2012
-------- (Rupees in '000) --------Cost
Accumulated depreciation
Carrying amount
2,359,114
(790,278)
1,568,836
2,291,371
(712,963)
1,578,408
The movement in surplus on revaluation of fixed assets is given in note 20.1 to the financial statements.
9.4
As at 31 December 2013, the cost of fully depreciated fixed assets still in use amounted to Rs 2,183.705 million (2012:
Rs. 2,241.287 million).
9.5
Depreciation rates for furniture, fixtures and office equipment are as follows:
Furniture and fixtures
Printers
Other office equipment
Computer equipment
ATM machines
9.6
33.33
33.33
20.00
33.33
14.28
percent
percent
percent
percent
percent
Details of disposal of fixed assets whose original cost or book value exceeds Rs. 1 million or Rs 250,000, which ever is less, and
assets disposed of to the Chief Executive or to a director or to executives or to a shareholder holding not less than 10% of the voting
shares of the bank or to any related party, irrespective of value, are given below:
Particulars
Cost
Accumulated
depreciation
Freehold Land
Building on freehold /
Leasehold land
146,685
Book
value
Sale
Proceeds
Gain / (Loss)
on Sale
Mode of
Disposal
Particulars of Purchaser
----------------------------------------- (Rupees in '000) ----------------------------------------
Furniture, fixtures and
office equipment
------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------------------- do --------------Vehicle (Toyota Altis AKX-512)
Vehicle (Toyota Corolla LZY-1811)
24,991
8,640
39,034
18,766
9,059
6,940
5,239
4,810
3,888
3,709
3,686
3,018
2,802
2,753
2,581
2,455
2,413
2,355
2,205
2,125
2,102
2,015
1,616
1,512
1,388
1,382
1,154
1,108
1,008
1,309
1,227
313,975
7,322
3,240
37,083
18,766
9,059
6,940
5,239
4,784
3,888
3,709
3,674
3,018
2,802
2,753
2,581
2,455
2,403
2,355
2,205
2,125
2,102
2,015
1,616
1,492
1,388
1,382
1,154
1,108
1,008
1,309
1,227
142,202
146,685
308,379
161,694
Tender
17,669
5,400
1,951
6,373
5,000
2,119
784
588
1,651
692
565
404
394
506
429
374
152
264
366
125
184
220
218
236
206
206
217
310
365
221
192
131
652
900
333,423
(11,296)
(400)
168
784
588
1,651
692
539
404
394
494
429
374
152
264
366
115
184
220
218
236
206
206
197
310
365
221
192
131
652
900
161,650
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Tender
Insurance claim
26
12
10
20
171,773
Items having book value of less than Rs. 250,000 and cost of less than Rs. 1,000,000:
Short leasehold Property - Cost
185
Furniture, fixtures and office
equipment
7,667
Vehicles
1,927
Total
323,754
157
28
63
35
7,638
1,927
151,924
29
171,830
1,120
1,578
336,184
1,091
1,578
164,354
World Food Program
World Food Program
Mr. Muhammad Riaz
M/S NCR Corporation
M/S NCR Corporation
M/S National Traders
M/S Tech-Solution Engineering & Services
M/S National Traders
M/S National Traders
M/S National Traders
M/S Pakistan International
M/S National Traders
M/S National Traders
M/S Pakistan International SJ General Trading
M/S National Traders
M/S Pakistan International
M/S Khan Auctioneers
M/S Pakistan International SJ General Trading
M/S Muhammad Shahid Soomro
M/S Pakistan International SJ General Trading
M/S National Traders
M/S National Traders
M/S Muhammad Shahid Soomro
M/S National Traders
M/S National Traders
M/S Farhan & Company
M/S Farhan & Company
M/S Pakistan International SJ General Trading
M/S Paramount Traders
M/S National Traders
Mr. Chaudhry Adeel Masood
M/S Adamjee Insurance
119
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
10
INTANGIBLE ASSETS
2013
Goodwill
Cost
At 1 January 2013
Additions during the year
At 31 December 2013
Amortised
At 1 January 2013
Charge for the year
At 31 December 2013
Net book value
Rate of amortisation
Core
deposits
intangible
Customer
relationships
intangible
Brand
names
Computer
Software
Total
----------------------------------------- (Rupees in '000) -----------------------------------------26,095,310
26,095,310
26,095,310
-
1,982,413
1,982,413
774,680
774,680
389,400
389,400
343,133
343,133
29,584,936
29,584,936
1,982,413
1,982,413
738,559
13,183
751,742
246,798
38,933
285,731
341,568
642
342,210
3,309,338
52,758
3,362,096
22,938
-
103,669
-
923
20%
26,222,840
-
-
2012
Cost
At 1 January 2012
Additions during the year
At 31 December 2012
Amortised
At 1 January 2012
Charge for the year
At 31 December 2012
Net book value
Rate of amortisation
26,095,310
26,095,310
26,095,310
-
1,982,413
1,982,413
774,680
774,680
389,400
389,400
341,705
1,428
343,133
29,583,508
1,428
29,584,936
1,924,272
58,141
1,982,413
720,780
17,779
738,559
207,865
38,933
246,798
317,256
24,312
341,568
3,170,173
139,165
3,309,338
36,121
-
142,602
-
1,565
20%
26,275,598
-
-
As at 31 December 2013, the gross carrying amount of fully amortised intangible assets (computer software) still in use amounted to
Rs. 338.350 million (2012: Rs. 338.350 million).
10.2
The recoverable amount for the purpose of assessing impairment on goodwill on acquisition of Union Bank Limited was based on value
in use. The calculations are based on the 2014 budget and forecasts for subsequent two years as approved by the management. These
have then been extrapolated for a further period of 17 years using a steady long term forecast GDP growth rate and a terminal value
determined based on a long term earnings multiple. The cash flows are discounted using a pre-tax discount rate which reflects the
current market rate appropriate for the business. For the calculation as at 31 December 2013, the bank has used a long term forecast
GDP growth rate of 4.4 percent and a discount rate of 28.7 percent. The management believes that any reasonable possible changes
to the key assumptions on which calculation of recoverable amount is based, would not cause the carrying amount to exceed the
recoverable amount.
Financial statements and notes
10.1
120 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
11
DEFERRED TAX ASSETS / (LIABILITIES) -NET
The following are major deferred tax assets / (liabilities) recognised and movement thereon:
2013
Note
At 1
January
2013
(Charge) /
credit to profit
and loss
Debit/
(credit)
to equity/
other
comprehensive
income
At 31
December
2013
----------------------------------------- (Rupees in '000) ------------------------------------------
Available for sale investments
Provisions for loans and advances
Other assets
Fixed assets
Surplus on revaluation of Fixed Assets
Goodwill
Actuarial gains on retirement benefits
11.1
(228,718)
6,509,475
(79,291)
(263,032)
(29,154)
(4,439,830)
(21,897)
1,447,553
(1,074,136)
(7,531)
35,363
9,090
(874,985)
(1,912,199)
194,511
9,484
203,995
(34,207)
5,435,339
(86,822)
(227,669)
(20,064)
(5,314,815)
(12,413)
(260,651)
2012
At 1
January
2012
(Charge) /
credit to profit
and loss
Debit/
(credit)
to equity/
other
comprehensive
income
At 31
December
2012
----------------------------------------- (Rupees in '000) ------------------------------------------
Available for sale investments
Provisions for loans and advances
Other assets
Fixed assets
Surplus on revaluation of Fixed Assets
Goodwill
Actuarial gains on retirement benefits
11.1
121,667
6,592,754
(77,869)
(280,390)
(33,109)
(3,586,802)
(16,345)
2,719,906
(83,279)
(1,422)
17,358
3,955
(853,028)
(916,416)
(350,385)
(5,552)
(355,937)
(228,718)
6,509,475
(79,291)
(263,032)
(29,154)
(4,439,830)
(21,897)
1,447,553
For income year 2013, the Group has recognised a net Deferred Tax Liability of Rs. 261 million. This liability is net of deferred tax asset
of Rs. 5,435 million recognised on Non-performing loans.
The Finance Act, 2010 amended the Seventh Schedule to the Income Tax Ordinance, 2001 whereby the limit for claiming provisions
for advances and off balance sheet items in respect of Consumer and SME advances has been enhanced from 1% to 5% of gross
Consumer and SME advances. In case of Corporate advances, the limit continues to be 1% of gross Corporate advances.
The management carried out an exercise and based on that concluded that the Group would achieve a deduction for provisions in
excess of the limits prescribed by the Income Tax Ordinance, 2001 in future years. Accordingly, deferred tax asset of Rs. 1,195 million
has been recognised on such provisions for income years 2009 upto 2013.
The Seventh Schedule has been further amended through Finance Act, 2010 by introducing transitional provisions, whereby amounts
provided for against irrecoverable or doubtful advances in tax year 2008 (income year 2007) and prior years, would be allowed in the
tax year in which these advances are actually written off.
The management considers that the amendment made vide Finance Act, 2009 in respect of provisions for bad debts being allowed at
1% of total advances is applicable for tax year 2010 (income year 2009), whereas for tax year 2009 (income year 2008), the provision
for bad debts would continue to be allowed under the Seventh Schedule at the time of actual write-off.
The deferred tax asset recognized upto December 31, 2008 relating to provisions for advances and off balance sheet items amounting
to Rs. 4,240 million has been carried forward.
121
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
12
OTHER ASSETS
Income / mark-up accrued in local currency
Income / mark-up accrued in foreign currencies
Advances, deposits, advance rent and other prepayments
Receivable from defined benefit plans
Advance taxation (payments less provisions)
Branch adjustment account
Unrealized gain on forward foreign exchange contracts
Interest rate derivatives and currency option - positive fair value
Receivable from SBP / Government of Pakistan
Receivable from associated undertakings
Receivable from Standard Chartered Bank, Sri Lanka operations
Non-banking assets acquired in satisfaction of claims
Advances against future Murabaha
Advance Federal Excise Duty
Commodities under Islamic finance
Bank acceptances
Others
Less: Provision against other assets
Other Assets - net of provisions
12.1
Note
21.6.2
12.4
12.2
12.3
12.1
2013
2012
-------- (Rupees in '000) --------4,622,075
77,426
741,328
9,320,011
6,005
1,129,842
580,296
122,790
3,686
36,276
744,251
6,379,093
188,443
295,133
4,930,334
398,895
29,575,884
(429,028)
29,146,856
3,035,024
25,895
756,349
7,300
9,268,127
168,165
167,431
1,535,248
176,398
8,109
152,865
744,251
2,681,333
188,443
15,322,698
576,372
34,814,007
(556,026)
34,257,981
556,026
(126,998)
429,028
566,339
(10,313)
556,026
Provision against other assets
Opening balance
Reversal during the year
Closing balance
Based on the last valuation, the market value of non-banking assets acquired in satisfaction of claims amounted to Rs 433.400 million.
Accordingly, the differential between carrying amount and market value was provided at the time of valuation.
12.3
Included in these acceptances is Rs. Nil (2012: Rs. 5.233 billion) which have been further discounted by the bank.
12.4
Consequent to Sale and Purchase Agreement (SPA) signed between Standard Chartered Bank, Sri Lanka (SCBSL) and Standard
Chartered Bank (Pakistan) Limited (SCBPL), the Sri Lanka branch operations of SCBPL were amalgamated with SCBSL with effect
from close of business on 10 October 2008. According to the terms of SPA, ‘unproductive debts’, ‘staff loans of SCBPL who are not
retained by the purchaser’, 'their corresponding housing loans’ and ‘assets arising from litigation which cannot be assigned’ are held
in trust with SCBSL. The recoveries made (net of expenses) from such assets are to taken to income from Sri Lanka branch operations,
as disclosed in note 25 to these financial statements, and consequently recorded as receivable. The Central Bank of SriLanka during
the current year had allowed remittance of major portion of the outstanding balance which has been received during the year.
13
BILLS PAYABLE
In Pakistan
Outside Pakistan
14
6,127,636
412,577
6,540,213
5,980,351
184,516
6,164,867
16,476,377
814,798
17,291,175
23,372,739
26,650
23,399,389
16,476,377
814,798
17,291,175
23,372,739
26,650
23,399,389
BORROWINGS
In Pakistan
Outside Pakistan
14.1
2013
2012
-------- (Rupees in '000) ---------
Particulars of borrowings with respect to currencies
In local currency
In foreign currencies
Financial statements and notes
12.2
122 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
14.2
Details of borrowings secured / unsecured
Secured
Borrowings from State Bank of Pakistan
under Export Refinance (ERF) scheme
Repurchase agreement borrowings (Repo)
Long Term Finance -secured
State Bank of Pakistan - LTFF
State Bank of Pakistan - LTF - Export Oriented Projects
Note
14.2.1
14.2.2
14.2.3
14.2.4
Unsecured
Call borrowings
Overdrawn nostro accounts
14.2.5
2013
2012
-------- (Rupees in '000) ---------
13,945,205
725,000
1,796,279
3,370
16,469,854
14,450,505
5,963,886
2,418,056
10,938
22,843,385
821,321
17,291,175
525,000
31,004
23,399,389
14.2.1 Mark-up on Export Refinance (ERF) from State Bank of Pakistan is charged at 6.83 percent to 8.4 percent (2012: 8.5 percent to 10
percent) per annum. ERF borrowings also include borrowings under Islamic Export Refinance scheme amounting to Rs. 1.060 billion
(2012: Rs. 1.368 billion). These borrowings are secured against demand promissory notes executed by the Bank in favour of State Bank
of Pakistan.
14.2.2 This pertains to long term loan facilities obtained by Standard Chartered Leasing Limited which carry mark-up at the rate of 6 month
KIBOR plus 0.4% to 0.75% per annum. These are secured by way of hypothecation charge on specific leased assets and lease rentals
receivable of the Company.
14.2.3 Mark-up on Long Term Finance Facility (LTFF) from State Bank of Pakistan carry mark up rates ranging from 7 percent to 11 percent
(2012: 7 percent to 11 percent) per annum. These loans are secured against promissory notes executed by the Bank in favour of State
Bank of Pakistan.
14.2.4 Mark-up on Long Term Finance for Export Oriented Projects (EOP) from State Bank of Pakistan carry mark up rate at 5 percent (2012:
5 percent ) per annum. These loans are secured against promissory notes executed by the Bank in favour of State Bank of Pakistan.
14.2.5 These include overdrawn nostro accounts with other branches and subsidiaries of Standard Chartered Group outside Pakistan amounting
to Rs. 807.349 million (2012: Rs. 26.65 million).
15
DEPOSITS AND OTHER ACCOUNTS
Note
2013
2012
-------- (Rupees in '000) ---------
Customers
Remunerative
- Fixed deposits
- Savings deposits
Non-Remunerative
- Current accounts
- Margin accounts
- Special exporters' account
Financial Institutions
- Non-remunerative deposits-current accounts
15.1
15.2
15.1
26,043,138
142,054,293
31,191,353
127,430,005
125,832,808
592,409
850,511
295,373,159
106,273,203
381,728
506,714
265,783,003
1,003,987
296,377,146
815,568
266,598,571
This includes Rs. 456.852 million (2012: Rs. 254.274 million) against balances of other branches and subsidiaries of Standard Chartered
Group operating outside Pakistan.
Particulars of deposits
In local currency
In foreign currencies
2013
2012
-------- (Rupees in '000) --------231,985,439
64,391,707
296,377,146
211,508,641
55,089,930
266,598,571
123
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
16
SUB-ORDINATED LOANS
Term Finance Certificates issued
16.1
Note
16.1
2,500,000
2,750,000
The Group, on 29 June 2012, issued fourth, rated, unsecured, subordinated TFCs of Rs. 2,500 million by way of private placement.
Terms for the fourth outstanding issue are as follows:
Year of Issue
Rating
Rate
2012
AAA
0.75% above the six months
Karachi Inter-Bank Offered Rate
("KIBOR") prevailing one
working day prior to
the beginning of
each semi annual period
10 years
Floor
Ceiling
Repayment
Note
17
2013
2012
-------- (Rupees in '000) ---------
OTHER LIABILITIES
17.1
17.2
21.6.2
17.3
17.4
12.3
744,070
175,717
3,990,379
1,984,343
204,804
1,636,358
1,130,060
2,146,183
27,536
5,559,289
21,281
1,643,340
318,638
531,620
4,930,334
1,947,745
2,495,185
852,228
30,339,110
1,145,672
114,511
3,822,244
2,012,453
245,124
1,112,467
192,609
4,381,831
9,014,703
14,643
1,353,896
134,761
479,779
15,322,698
1,732,822
2,852,605
785,737
44,718,555
17.1
The estimated share of profit payable on participatory and unsecured Musharika facilities ranges from 10.1 % to 10.51 % per annum
(Dec 2012: 11.25% to 12.97 % per annum).
17.2
The estimated share of profit payable on participatory and unsecured Musharika facilities ranges from 7.3% to 15.50% per annum
and are due to mature by December 2016 (Dec 2012: 7.25% to 15.5% per annum and are due to mature by Nov 2014).
17.3
Due to Holding Company
On account of reimbursement of executive and general administrative expenses
Royalty and other payable
17.4
Provision against off-balance sheet obligations
Opening balance
Charge for the year
Closing balance
2013
2012
-------- (Rupees in '000) --------4,440,883
1,118,406
5,559,289
8,082,781
931,922
9,014,703
134,761
183,877
318,638
122,361
12,400
134,761
Financial statements and notes
Mark-up / return / interest payable in local currency
Mark-up / return / interest payable in foreign currency
Musharika and accrued profit thereon
Certificates of Musharika
Accrued expenses
Advance payments
Sundry creditors
Unrealized loss on forward foreign exchange contracts
Unrealized loss on interest rate derivatives and currency options
Payable to defined benefit plans
Due to Holding Company
Dividend payable
Unclaimed balances
Provision against off balance sheet obligations
Worker's Welfare Fund (WWF) payable
Bank acceptances
Security Deposits
Certificates of Investment
Others
2013
2012
-------- (Rupees in '000) ---------
124 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
18
SHARE CAPITAL
18.1
Authorized Capital
2013
2012
(Number of shares)
4,000,000,000
18.2
4,000,000,000
Note
Ordinary shares of Rs.10 each
2013
2012
-------- (Rupees in '000) --------40,000,000
40,000,000
Issued, subscribed and paid-up Capital
2013
2012
(Number of shares)
2,939,785,018
2,939,785,018
931,800,003
931,800,003
3,871,585,021
3,871,585,021
2013
2012
-------- (Rupees in '000) --------Ordinary shares of Rs. 10 each Fully paid in cash
Issued in terms of scheme
of amalgamation
18.3
29,397,850
29,397,850
9,318,000
9,318,000
38,715,850
38,715,850
18.3
These represent 892,554,151 shares of Rs 10/- each issued and allotted at par to Standard Chartered Bank, United Kingdom against
transfer of entire undertaking of SCB Branch Business by SCB to the Bank, and 39,245,852 shares issued and allotted at par credited
as fully paid up to persons who were registered shareholders of Union Bank. These shares have been issued in accordance with the
scheme of amalgamation duly approved by State Bank of Pakistan on 4 December 2006.
18.4
At 31 December 2013, Standard Chartered Bank , United Kingdom, held 98.99% shares of the Bank.
Note
19
Reserves
Share premium
Statutory reserve
19.1
19.2
2013
2012
-------- (Rupees in '000) --------1,036,090
6,144,462
7,180,552
1,036,090
4,032,538
5,068,628
19.1
This represents excess of fair value of the shares over par value of shares issued to registered shareholders of Ex-Union
Bank in terms of the amalgamation scheme.
19.2
In accordance with the Banking Companies Ordinance, 1962, the Bank is required to transfer twenty percent of its profit
of each year to a reserve fund until the amount in such fund equals the paid-up capital of the Bank.
19.3 The Board of Directors in their meeting held on March 5, 2014 has announced a final cash dividend of 14% (Rs. 1.4 per
share) in respect of the year ended December 31, 2013 (2012: Re. 1.25 per share). This is in addition to 10% (Re. 1/per share) interim cash dividend announced during the year. These financial statements for the year ended December
31, 2013 do not include the effect of final dividend appropriations which will be accounted for subsequent to the year end.
20
SURPLUS / (DEFICIT) ON REVALUATION OF ASSETS - NET OF DEFERRED TAX
Note
Surplus / (deficit) arising on revaluation of:
Fixed assets
Available for Sale Securities
20.1
20.2
2013
2012
-------- (Rupees in '000) --------3,378,993
72,199
3,451,192
3,536,245
430,564
3,966,809
125
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
20.1
Surplus on revaluation of fixed assets - net of tax
Note
2013
2012
-------- (Rupees in '000) ---------
Surplus on revaluation of fixed assets as at 1 January
Surplus realized on disposal of revalued properties
3,565,399
(158,101)
3,576,699
-
(5,357)
(2,884)
(8,241)
3,399,057
(7,345)
(3,955)
(11,300)
3,565,399
(29,154)
6,206
2,884
(20,064)
3,378,993
(33,109)
3,955
(29,154)
3,536,245
(119,403)
116,156
100,968
8,685
106,406
507,892
224,902
(79,314)
5,802
659,282
(34,207)
72,199
(228,718)
430,564
37,738,000
16,762,338
36,307,266
15,074,852
Transferred to unappropriated profit in respect of incremental
depreciation charged during the year - net of deferred tax
Related deferred tax liability
Surplus on revaluation of fixed assets as at 31 December - net of tax
Less: Related deferred tax liability on:
Revaluation surplus as at 1 January
Revaluation surplus realized on disposal during the year
Incremental depreciation charged during the year transferred to profit and loss account
Surplus on revaluation of fixed assets as at 31 December - net of tax
20.2
Surplus / (deficit) on revaluation of Available for Sale securities - net of tax
Market Treasury Bills
Pakistan Investment Bonds
Sukuk and Ijarah Bonds
Listed shares and units of mutual funds
Related deferred tax (liability) / asset
21
CONTINGENCIES AND COMMITMENTS
21.1
Transaction-related contingent liabilities
21.1.1
21.1.1 Guarantees relating to Islamic Banking Business amount to Rs 1,178 million (2012: Rs 1,593 million).
21.2
Trade-related contingent liabilities
Letters of credit
21.2.1
23,967,127
22,946,980
21.2.1 Letters of credit relating to Islamic Banking Business amount to Rs 7,203 million (2012: Rs. 8,287 million). This also includes outstanding
balance of Standard Chartered Modaraba's share against letters of credit amounting to Rs. 30.022 million (2012: Rs. 25.572 million).
21.3
Other contingencies
Claims against the Bank not acknowledged as debt
21.3.1
13,713,285
12,683,179
21.3.1 These represent certain claims by third parties against the Bank, which are being contested in the Courts of law. The management
is of the view that these relate to the normal course of business and the possibility of an outflow of economic resources is remote.
Financial statements and notes
Guarantees issued favouring:
- Government
- Others
126 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
21.4
2013
2012
-------- (Rupees in '000) ---------
Commitments in respect of forward foreign exchange contracts
Purchase from:
State Bank of Pakistan
Other banks
Customers
45,491,250
40,277,064
2,490,934
12,336,500
19,978,336
3,018,333
Sale to:
State Bank of Pakistan
Other banks
Customers
2,643,500
70,837,253
3,761,986
32,313,696
1,299,251
The maturities of the above contracts are spread over a period of one year.
21.5
Commitments to extend credit
The Group makes commitments to extend credit in the normal course of its business but these being revocable commitments do not
attract any significant penalty or expense if the facility is unilaterally withdrawn.
21.6
Derivative instruments
21.6.1 Product analysis
Interest Rate Swaps
No. of
Notional
Contracts
Principal*
Counterparties
2013
FX Options
No. of
Notional
Contracts
Principal *
(Rupees in '000)
With Banks for
Hedging
Market Making
13
17,651,475
22
-
4
2,885,652
-
24
27,689,352
22
405,782
Hedging
Market Making
41
48,226,479
44
811,564
2012 Total Market Making
61
76,813,074
602
6,740,750
With FIs other than banks
Hedging
Market Making
With other entities for
Hedging
Market Making
Total
*
(Rupees in '000)
405,782
-
At the exchange rate prevailing at the end of the reporting period
Contracts with banks represent contracts entered with branches of Standard Chartered Bank, UK to obtain cover against the contracts with customers,
except for 5 contracts with local banks having notional principal of Rs. 10,594 million.
21.6.2
Maturity analysis
Interest Rate Swaps and FX Options
Remaining
Maturity
Upto 1 month
1 to 3 months
3 to 6 months
6 month to 1 year
1 to 2 year
2 to 3 years
3 to 5 years
5 to 10 years
Above 10 years
No. of
Contracts
Notional
Principal
Negative
Mark to Market
Positive
Net
----------------------- (Rupees in '000) ------------------------
38
9
2
3
7
7
15
4
85
761,131
5,732,780
224,691
4,077,283
13,157,257
11,432,637
11,832,255
1,820,009
49,038,043
(17,969)
(343,675)
(1,195)
(269,607)
(287,794)
(258,618)
(958,786)
(8,539)
(2,146,183)
17,969
63,691
1,195
2,017
63,111
230,545
193,229
8,539
580,296
(279,984)
(267,590)
(224,683)
(28,073)
(765,557)
(1,565,887)
127
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
21.7
Commitments of subsidiaries
Standard Chartered Leasing
Standard Chartered Modaraba
Note
21.7.1
21.7.2
2013
2012
-------- (Rupees in '000) --------540,836
123,063
471,864
20,685
21.7.1 The amount represents lease commitments of Standard Chartered Leasing Limited outstanding as at 31 December 2013.
21.7.2 The amount represents outstanding commitments of Standard Chartered Modaraba in respect of letters of comfort as at 31 December
2013.
Note
2013
2012
22
MARK-UP / RETURN / INTEREST EARNED
-------- (Rupees in '000) --------On loans and advances to customers
On loans and advances to financial institutions
On investments in:
i) Held for trading securities
ii) Available for sale securities
On securities purchased under resale agreements
On call money lending / placements
23
MARK-UP / RETURN / INTEREST EXPENSED
Deposits
Securities sold under repurchase agreements
Call borrowings
Borrowings from State Bank of Pakistan under
Export Refinance (ERF) scheme
Profit on redeemable capital, musharika and murabaha
Term Finance Certificates (sub-ordinated loans)
Others
24
GAIN ON SALE OF SECURITIES - NET
Equity Securities - Listed
25
OTHER INCOME
Income from Sri Lanka branch operations
Rent on property
Gain / (Loss) on disposal of fixed assets
Gain / (Loss) on derivatives
Gains on assets fair valued at acquisition
Others
12.4
18,344,014
31,357
126,707
13,537,736
528,724
12,447
31,493,338
116,824
13,135,594
574,768
11,675
32,214,232
10,283,179
278,122
19,224
9,766,450
283,605
28,287
1,244,824
359,262
253,907
248,657
12,687,175
1,352,841
323,871
256,495
326,448
12,337,997
359,016
326,559
46,593
732,168
481
732,649
740,732
286,317
63,449
1,090,498
80,455
1,170,953
10,619
32,281
164,354
(1,301,971)
214,241
57,807
(822,669)
15,457
38,721
37,090
699,858
146,702
68,415
1,006,243
Financial statements and notes
Federal Government Securities
Market Treasury Bills
Pakistan Investment Bonds
Ijarah Sukuks
17,178,250
109,474
128 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
26
ADMINISTRATIVE EXPENSES
Salaries, allowances, etc.
Charge / (income) for defined benefit plans
Contributions to defined contribution plans
Rent, taxes, insurance, electricity, etc.
Legal and professional charges
Communications
Repairs and maintenance
Stationery and printing
Advertisement and publicity
Donations
Auditors' remuneration
Depreciation
Amortization
Traveling, conveyance and vehicles' running
Reimbursement of executive and general administrative expenses
Royalty
Reward and bonus points redemption
Premises security and cash transportation services
Others
26.1
Note
26.1
26.2
26.3
2013
2012
-------- (Rupees in '000) --------5,101,125
7,739
234,710
1,274,763
105,327
440,333
760,646
195,331
264,792
24,540
21,055
494,900
52,758
186,403
(977,596)
119,065
103,031
284,273
272,833
8,966,028
4,799,704
8,341
297,388
1,274,638
110,508
450,567
894,762
211,050
173,706
16,100
21,401
486,603
139,165
224,351
4,206,039
137,459
123,617
292,098
178,050
14,045,547
8,000
1,100
2,000
2,400
4,000
3,100
3,940
7,000
2,500
2,500
2,400
1,200
500
-
17,928
700
1,184
1,243
21,055
17,133
450
2,880
938
21,401
Details of the donations given in excess of Rs. 100,000 are given below:
Donee
Institute of Business Administration
The Citizen Foundation
The Kidney Centre
Lahore University of Management Sciences
SST Public School Rashidabad
HOPE
Habib University
Aman Foundation
The Hunar Foundation
26.1.1
26.1.1 Mr. Mohsin Ali Nathani, CEO of the bank is also a member of Board of Governors of The Kidney Centre.
26.2
Auditors' remuneration
Audit fee
Fee for audit of pension, gratuity and provident funds
Special certifications and others
Taxation services
Out-of-pocket expenses
26.3
During the year, State Bank of Pakistan has partially restricted the remittance of certain outsourcing charges and accordingly the
excess accrual amounting to Rs. 3,005 million has been reversed.
26.4
Total cost for the year included in Administrative Expenses relating to outsourced activities is Rs. 2,464 million. This includes payments
to local companies for obtaining routine services such as personnel for collection and recoveries, contact centre, service quality and
technology maintenance, courier services and executive and general administrative expenses of SCB UK.
129
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
27
OTHER PROVISIONS / ASSET WRITE OFFS
Fixed asset write offs
Other provisions
Reversal of provision against receivable under cross
currency swaps arrangement
Others
28
For prior years
(120,792)
(10,313)
671
(120,121)
(59,763)
1,339
(8,974)
51,659
1,821
335,728
337,549
(2,029)
192,067
190,038
3,735,531
1,912,199
5,647,730
21,136
5,668,866
2,338,939
916,416
3,255,355
21,136
3,276,491
16,368,185
9,322,355
5,728,865
10,174
(65,606)
21,136
(25,703)
5,668,866
3,262,824
7,583
(18,902)
21,136
3,850
3,276,491
Relationship between tax expense and accounting profit
Profit before taxation
Standard Chartered Bank (Pakistan) Limited
The return for income year 2013 (Tax Year 2014) is due for filing by 30 September 2014.
The tax department amended the assessments for income years 2007 to 2012 (tax years 2008 to 2013 respectively) under the related
provisions of the Income Tax Law, determining additional tax liability on account of various issues (such as disallowances of expenses
relating to provision against loans and advances, goodwill amortisation etc.). The resultant tax demands of Rs. 10,155 million have
been paid by the Bank. Appeals against the amended assessment orders are pending before different appellate forums.
The management considers that a significant amount of the additional tax liability is the result of timing differences and is confident
that the issues in the above mentioned tax years will be decided in favour of the Bank at appellate forums. Consequently, no additional
provision is required.
The Tax Authorities have passed an order for the income years 2009 and 2010 levying Federal Excise Duty amounting to Rs. 188
million on certain items. The Bank is contesting the order in the appeal. The Bank has paid entire amount under protest.
Further, an order for income year 2011 levying Federal Excise Duty of Rs. 515.6 million has been issued. The demand has been
stayed by the Sindh High Court.
29.3
Standard Chartered Bank – Branch Operations
The assessments have been finalized upto and including tax year 2006. The Bank’s / departmental appeals for the assessment / tax
years 1976-77 to 2006 are pending before different appellate forums on various issues. The management expects favourable decisions
in pending appeals and consequently, no additional provision is required.
Financial statements and notes
Tax at the applicable tax rate of 35% (2012: 35%)
Expenses that are not deductible in determining taxable income
Income (dividend, capital gain etc.) at reduced rates
Prior year provision
Others
29.2
60,633
TAXATION
For the year
- Current
- Deferred
29.1
60,358
OTHER CHARGES
Net charge / (reversal) against fines and penalties imposed by SBP
Worker's Welfare Fund (WWF)
29
2013
2012
-------- (Rupees in '000) ---------
130 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
29.4
Union Bank Limited
The tax assessments for the assessment years 1993-94 through tax year 2007 are pending at various appeal forums against certain
disallowances. The management expects favourable decision in pending appeals and consequently, no additional provision is required.
30
EARNINGS PER SHARE - BASIC AND DILUTED
Profit for the year attributable to equity holders of the Group
Weighted average number of ordinary shares in issue during the year
2013
2012
-------- (Rupees in '000) --------10,559,620
5,945,685
3,871,585,021
3,871,585,021
(Rupees)
Earnings per share - basic and diluted
31
CASH AND CASH EQUIVALENTS
Cash and balances with treasury banks
Balances with other banks
32
STAFF STRENGTH
Permanent
Temporary / on contractual basis / direct contracts
Group's own staff at the end of the year
Outsourced
Total Staff Strength
33
DEFINED BENEFIT PLANS
33.1
General description
2.73
1.54
2013
2012
-------- (Rupees in '000) --------32,331,167
1,608,932
33,940,099
31,487,972
2,700,218
34,188,190
Number
3,008
9
3,017
1,572
4,589
3,076
4
3,080
1,961
5,041
Non Management Staff Pension Fund
The plan provides pension calculated at 50% of the average pensionable salary after completing 30 years of service. The employees
of the bank are entitled to either pension or gratuity, but not both. However, the employees of ANZ Grindlays Bank transferred to the
bank are entitled to both pension and gratuity and the minimum number of years required for entitlement of pension is 25 years for
these employees. Pension is calculated as 1/120 times the last drawn merged salary for each year of service.
Non Management Staff Gratuity Fund
The plan provides a lump sum gratuity calculated at one month's salary for each completed year of service (maximum 40 months)
after completing 5 years of service. For the employees of ex-ANZ Grindlays Bank, the plan provides a lump sum calculated at 50%
of last drawn merged salary for each completed year of service (maximum 40 months) after completing 5 years of service. However,
if the employee is not entitled for pension, the percentage is increased to 100%. The employees of SCB are entitled to either pension
or gratuity, but not both.
Management Staff Pension Fund
The plan is closed to active employees. The entire liability is in respect of existing pensioners.
33.2
Principal Actuarial Assumptions
The last actuarial valuation of the scheme was carried out on 31 December 2013 and the key assumptions used for actuarial valuation
were as follows:
2013
2012
Discount rate
12.75% p.a.
12% p.a.
Expected rate of increase in salary in future years
12.75% p.a.
12% p.a.
Expected rate of return on plan assets
12.75% p.a.
12% p.a.
Expected long term rate of increase in pension
6.75% p.a.
6% p.a.
Mortality rate
LIC (1975-79) ultimate mortality
LIC (1975-79) ultimate mortality
table rated down one year
table rated down one year
Withdrawal rate
Light
Light
131
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
SCB Non Management
Pension Fund
2013
2012
33.3
Reconciliation of (receivable) / payable from /
to defined benefit plan
Present value of defined benefit obligations
Fair value of plan assets
(Asset) / liability recognised
33.4
33.6
46,716
(44,064)
2,652
38,387
(48,841)
(10,454)
206,827
(179,291)
27,536
168,429
(175,729)
(7,300)
60,408
504
6,880
(4,771)
(3,675)
59,346
68,506
600
8,446
(5,177)
(11,967)
60,408
69,634
2,863
5,144
8,159
14,965
100,765
55,950
2,465
7,220
3,999
69,634
38,387
4,270
(5,309)
9,368
46,716
45,189
5,443
(5,923)
(6,322)
38,387
168,429
3,367
5,144
19,309
(10,080)
20,658
206,827
169,645
3,065
21,109
(11,100)
(14,290)
168,429
Fair value as at 1 January
Interest income on plan asset
Contribution by the bank
Benefits paid
79,928
9,118
(4,771)
76,101
8,523
(5,177)
46,960
5,438
-
41,739
4,657
-
48,841
5,525
(5,309)
51,583
2,653
(5,923)
175,729
20,081
(10,080)
169,423
15,833
(11,100)
Actuarial gain / (loss) on plan assets
Fair value as at 31 December
(1,437)
82,838
481
79,928
(9)
52,389
564
46,960
(4,993)
44,064
528
48,841
(6,439)
179,291
1,573
175,729
(19,520)
(1,734)
(2,238)
(23,492)
(7,595)
523
(12,448)
(19,520)
22,674
10,728
14,974
48,376
14,211
5,028
3,435
22,674
(10,454)
(1,255)
14,361
2,652
(6,394)
2,790
(6,850)
(10,454)
(7,300)
7,739
27,097
27,536
222
8,341
(15,863)
(7,300)
504
6,880
(9,118)
(1,734)
600
8,446
(8,523)
523
2,863
8,159
(5,438)
5,144
10,728
2,465
7,220
(4,657)
5,028
4,270
(5,525)
(1,255)
5,443
(2,653)
2,790
3,367
19,309
(20,081)
5,144
7,739
3,065
21,109
(15,833)
8,341
9,118
(1,437)
7,681
8,523
481
9,004
5,438
(9)
5,429
4,657
564
5,221
5,525
(4,993)
532
2,653
528
3,181
20,081
(6,439)
13,642
15,833
1,573
17,406
33,609
31,371
(30,817)
(15,843)
32,674
47,035
35,466
62,563
Movement in defined benefit obligation
Movement in fair value of plan assets
Movement in (receivable) / payable from /
to defined benefit plan
Charge for defined benefit plan
Actual return on plan assets
Expected contributions for next year
33.11
Components of plan assets as a percentage
of total plan assets
Bonds
Cash and net current assets
Others
-
33%
67%
0%
-
98%
2%
0%
22%
78%
0%
2013
-
93%
7%
0%
2012
-
97%
3%
0%
91%
9%
0%
2011
2010
2009
Five year data on surplus/ (deficit) of the plans
and experience adjustments
----------------------------- (Rupees in '000) ------------------------------
Present value of defined benefit obligation
206,827
168,429
169,645
138,264
136,940
Fair value of plan assets
179,291
175,729
169,423
157,179
154,680
27,536
(7,300)
222
(18,915)
17,740
Experience adjustments on plan liabilities - loss / (gain)
5,373
(18,000)
(741)
(4,247)
(7,621)
Experience adjustments on plan assets - loss / (gain)
6,439
(7,637)
(3,889)
330
3,566
Deficit / (Surplus)
Financial statements and notes
Cumulative amount of actuarial gains
/ (losses) recognised in comprehensive
income
33.10
33.12
2012
69,634
(46,960)
22,674
- Expected return on plan assets
- Actuarial gain / (loss) on plan assets
33.9
2013
(Rupees in '000)
100,765
(52,389)
48,376
Current service cost
Interest cost
Expected return on plan assets
Recognition of past service cost
33.8
Total
60,408
(79,928)
(19,520)
Balance as at 1 January
Charge for the year
Contribution to the fund during the year
Actuarial (gain) / loss on plan assets
Balance as at 31 December
33.7
SCB Management
Pension Fund
2013
2012
59,346
(82,838)
(23,492)
Obligation as at 1 January
Current service cost
Prior Service Cost
Interest cost
Benefits paid
Actuarial (gain) / loss on obligation
Past service cost resulting from change in Rules
Obligation as at 31 December
33.5
SCB Non Management
Gratuity Fund
2013
2012
132 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
34
SHARE BASED PAYMENTS
The Bank's employees participate in the following share compensation plans operated globally by the ultimate holding company,
Standard Chartered Plc (SCPLC). For employees in Pakistan, the Group has changed its arrangement to issue shares of SCPLC upon
meeting the vesting conditions. Previously the Group operated cash equivalent or "phantom" arrangements under which employees
can receive a cash benefit linked to either the growth in Group's share (Sharesave scheme) or the value of the Group's share (restricted
/ performance share awards) and the arrangement did not give an option to the Bank's employees to buy SCPLC shares. The market
value of shares is denominated in pounds sterling at the time of grant. Phantom scheme not yet vested are still being accounted for
cash settled basis.
The total expense recognised in respect of above schemes on equity settled basis amounts to Rs. 59.741 million (2012: Rs.2.803
million) and is also included in managerial remuneration note 35. As also explained in note 3.20 in detail, the Bank's liability towards
its parent, however continues to be determined and recorded on cash settled basis for options not yet vested. The main features of
each plan are as follows:
i) Standard Chartered Share Plan
The 2012 Standard Chartered Share Plan replaced all the Group’s existing discretionary share plan arrangements following approval
by shareholders at the Group’s Annual General Meeting on 5 May 2011. It is the Group’s main share plan, applicable to all employees
with the flexibility to provide a variety of award types including performance shares, deferred awards (shares or cash) and restricted
shares. Performance and restricted share awards will generally be in the form of nil price options to participate in the shares of
SCPLC. The remaining life of the plan is ten years.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Notional dividend
At 31 December
2012
Weighted
average
exercise price
£ per share
70
36
(8)
(2)
1
97
(Number
in '000)
-
26
45
(1)
70
Weighted
average
exercise price
£ per share
-
The weighted average price at the time the options were exercised during 2013 was £ NIL (2012: £ NIL).
2013
Range of exercise price
Weighted
average
exercise price
Number
('000)
-
97
NIL
ii)
2012
Weighted average remaining life
Expected
Contractual
years
years
10
5.68 / 8.26
Weighted
average
exercise price
Number
('000)
-
70
Weighted average remaining life
Expected
Contractual
years
years
10
6.1 / 8.8
International Sharesave Scheme
The International Sharesave Scheme was first launched in 1996 and made available to all employees of the Bank. Employees have
the choice of opening a three-year or a five-year savings contract. Within a period of six months after the third or fifth anniversary,
employees may exercise the awards and receive any benefit in cash; alternatively, the employee may elect to have the savings, plus
interest, repaid in cash. The price at which they may purchase shares is at a discount of up to 20 percent on the share price at the
date of the invitation. There are no performance conditions attached to options granted. The options granted do not confer any right
to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
68
36
(4)
(16)
84
Weighted
average
exercise price
£ per share
11.88
11.78
10.98
14.07
11.91
The weighted average price at the time the options were exercised during 2013 was £10.98 (2012: £10.36).
2012
(Number
in '000)
118
(19)
(31)
68
Weighted
average
exercise price
£ per share
11.42
10.36
11.03
11.88
133
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
Range of exercise price
£9.8/£14.63
Weighted
average
exercise price
Number
('000)
11.91
84
2012
Weighted average remaining life
Expected
Contractual
years
years
3.33/5.33
1.31/3.42
Weighted
average
exercise price
Number
('000)
11.88
18
Weighted average remaining life
Expected
Contractual
years
years
3.33/5.33
2.1
The intrinsic value of vested International Sharesave cash-settled awards as at 31 December 2013 was Rs. 41,688 thousand (2012: Rs. 9,935 thousand).
iii)
Restricted Share Scheme
The Restricted Share Scheme is a discretionary share incentive scheme for high performing and high potential staff at any level of the organisation
whom the Group wishes to motivate and retain. Except upon appointment when an executive director may be granted an award of restricted shares,
the Restricted Share Scheme is not applicable to the Group's executive directors, as it has no performance conditions attached to it. Fifty per cent of
the award vests two years after the date of the grant and the remainder after three years. The awards granted under this scheme are nil cost options
with any benefit payable in cash. The options granted do not confer any right to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Notional dividend
At 31 December
Weighted
average
exercise price
£ per share
56
(25)
(10)
1
22
2012
(Number
in '000)
-
Weighted
average
exercise price
£ per share
110
(45)
(10)
1
56
-
-
The weighted average price at the time the options were exercised during 2013 was Nil (2012: Nil).
2013
Range of exercise price
N/a
Weighted
average
exercise price
Number
('000)
-
22
2012
Weighted average remaining life
Expected
Contractual
years
years
-
Weighted
average
exercise price
Number
('000)
-
56
3.13
Weighted average remaining life
Expected
Contractual
years
years
-
3.99
The intrinsic value of vested Restricted Share Scheme cash-settled awards as at 31 December 2013 was Rs. 15,332 thousand (2012 : Rs. 33,143
thousand).
iv)
Supplementary Restricted Share Scheme
The Group operates a Supplementary Restricted Share Scheme which can be used to defer part of an employee's annual bonus in shares. The plan
is principally used for employees in the global markets area and is similar to the RSS outlined above for three important factors: executive directors
are specifically prohibited from the plan; no new shares can be issued to satisfy awards; and there is no individual annual limit.
2013
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
2012
Weighted
average
exercise price
£ per share
1
1
(Number
in '000)
-
2
(3)
2
1
2013
Range of exercise price
N/A
Weighted
average
exercise price
Number
('000)
-
1
Weighted
average
exercise price
£ per share
-
2012
Weighted average remaining life
Expected
Contractual
years
years
5
Weighted
average
exercise price
Number
('000)
-
1
4.07
Weighted average remaining life
Expected
Contractual
years
years
5
5.03
The intrinsic value of vested Supplementary Restricted Share Scheme cash-settled awards as at 31 December 2013 was Rs. 1,875 thousand
(2012 : Rs. 414 thousand).
v)
Performance Share Plan
The Performance Share Plan is designed as an intrinsic part of total remuneration for the Group's executive directors and for a small number of the
Group's most senior executives. The awards granted under this scheme are nil cost options. Certain performance criteria need to be met before the
options can be exercised.
The option granted do not confer any right to participate in any share issue of any other company.
Movements in the number of share options held by the Bank's employees are as follows:
Financial statements and notes
Movements in the number of share options held by the Bank's employees are as follows:
134 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
2012
(Number
in '000)
(Number
in '000)
At 1 January
Granted during the year
Exercised during the year
Lapsed during the year
Adjustment due to right issue
At 31 December
12
(10)
(1)
1
39
(18)
(9)
12
2013
Range of exercise price
N/a
Weighted
average
exercise price
Number
('000)
-
1
2012
Weighted average remaining life
Expected
Contractual
years
years
-
4.19
Weighted
average
exercise price
Number
('000)
-
12
Weighted average remaining life
Expected
Contractual
years
years
-
7.5
The intrinsic value of vested Performance Share Plan cash-settled awards as at 31 December 2013 was Rs. 2,590 thousand (2012:
Rs. 1,833 thousand).
35
COMPENSATION OF CHIEF EXECUTIVE AND EXECUTIVES
Chief Executive
2013
Note
Director's remuneration / fees
35.1
Managerial remuneration
35.3
Directors
2012
2013
Executives
2012
2013
2012
----------------------------------- (Rupees in '000) ------------------------------------
-
-
3,630
3,160
-
-
112,164
130,359
-
-
1,946,113
1,812,181
Contribution to defined
contribution plan
3,422
3,422
-
-
190,748
178,211
Rent and house
maintenance
7,467
7,467
-
-
416,786
388,696
Medical
1,867
1,867
-
-
104,809
108,296
375
416
-
-
41,256
32,111
125,295
143,531
3,630
3,160
2,699,712
2,519,495
1
1
3
3
985
907
Others
Number of persons
35.1
The director's remuneration / fees represents remuneration paid to the Bank's 3 non-executive directors (2012: 3) for attending Board and SubCommittee meetings.
35.2
The Chief Executive is entitled to Bank provided free use of furnished accommodation. The Chief Executive and some of the executives are also
provided with Bank maintained cars. In addition, the Chief Executive and some of the executives are also reimbursed for cost of medical expenses
and other benefits like club subscription, children education etc. as per their terms of employment.
35.3
Managerial remuneration also includes charge against share compensation plans.
36
FAIR VALUE OF FINANCIAL INSTRUMENTS
On-balance sheet financial instruments
Except for investment unlisted companies, fixed term advances of over one year, staff loans and fixed term deposits of over one year, the fair value
of on balance sheet financial assets and liabilities are not significantly different from their book value as these assets and liabilities are either short
term in nature or are frequently re-priced. The fair value of fixed term advances of over one year, staff loans, fixed term deposits of over one year and
investment in equity of unlisted companies cannot be calculated with sufficient reliability due to non-availability of relevant active market for similar
assets and liabilities. The fair value of investment classified as held to maturity amounted to Rs. 58.755 million (2012: Rs. 116.513 million).
135
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
37
SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES
Wholesale
Consumer
Banking
Banking
Total
-------------- (Rupees in '000) --------------
The segment analysis with respect to business activity.
2013
Internal Income
Net mark-up / return / interest income
Non mark-up / non interest income
Operating income
Non mark-up / non interest expenses
Internal non mark-up / non interest expenses
Operating profit before provisions and taxation
Direct write-offs / provisions against non-performing
loans and advances - net of recoveries
Provision for diminution in the value of investments
Profit before taxation
Other segment items:
Depreciation on tangible fixed assets
Amortisation on intangible assets
Segment assets (gross)
Segment non performing loans
Segment provision required
Segment liabilities
Segment return on net assets (ROA) (%)
Segment cost of funds (%)
*
13,125,586
(1,673,621)
3,153,294
14,605,259
7,046,766
114,728
7,443,765
162,390
18,806,163
5,881,048
24,849,601
9,243,814
162,390
15,443,397
(1,535,820)
291,198
9,244,254
319,834
7,123,931
(1,215,986)
291,198
16,368,185
84,458
15,669
364,059,245
14,101,367
12,641,502
117,632,278
2.63%
2.64%
410,442
37,089
69,605,491
10,837,071
9,546,471
235,676,017
11.86%
12.74%
494,900
52,758
433,664,736
24,938,438
22,187,973
353,308,295
3.98%
4.03%
-------------- (Rupees in '000) --------------
*
**
(13,443,551)
20,994,416
4,635,118
12,185,983
4,555,659
55,062
7,575,262
13,681,438
(1,118,181)
2,676,845
15,240,102
9,731,585
182,825
5,325,692
237,887
19,876,235
7,311,963
27,426,085
14,287,244
237,887
12,900,954
1,364,112
441,903
5,769,247
1,772,584
3,553,108
3,136,696
441,903
9,322,355
67,542
37,268
360,362,192
16,422,552
14,797,851
129,454,711
1.67%
6.11%
419,061
101,897
64,317,124
11,051,293
9,773,636
214,176,671
6.51%
3.17%
486,603
139,165
424,679,316
27,473,845
24,571,487
343,631,382
2.33%
4.15%
Segment ROA = Profit before taxation / (Segment assets - Segment provisions)
** Segment cost of funds have been computed based on the average balances.
The management reviews the performance of Client Coverage and Global Markets as one business segment, namely Wholesale Banking.
Therefore the business activities of the Bank have been presented in two segments, Wholesale and Consumer Banking.
Wholesale banking
Deposits, trade, advisory services and other lending activities (including murabaha and ijarah) for corporates and financial institutions. It also
includes the overall management of treasury of the Bank, which entails various cash and interest risk management products for customers.
The products include FX forwards, FX options and interest rate swaps.
Financial statements and notes
2012
Internal Income
Net mark-up / return / interest income
Non mark-up / non interest income
Operating income
Non mark-up / non interest expenses
Internal non mark-up / non interest expenses
Operating profit before provisions and taxation
Direct write-offs / provisions against non-performing
loans and advances - net of recoveries
Provision for diminution in the value of investments - net
Profit before taxation
Other segment items:
Depreciation of tangible fixed assets
Amortisation of intangible assets
Segment assets (gross)
Segment non performing loans
Segment provision required
Segment liabilities
Segment return on net assets (ROA) (%)
Segment cost of funds (%)
*
**
(12,963,196)
20,479,784
2,727,754
10,244,342
2,197,048
47,662
7,999,632
136 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Consumer Banking
Wealth management, deposits, mortgages, auto finance, unsecured lending (credit cards, personal loans etc.), consumer leases and SME
lending (including SME trade).
38
RELATED PARTY TRANSACTIONS
Related parties comprise of Standard Chartered Plc., ultimate parent company, its other subsidiaries and branches, key management personnel,
employees' retirement benefit funds and other associated undertakings. The transactions with related parties are conducted at commercial /
agreed terms. The Group also provides advances to employees at reduced rates in accordance with their terms of employment.
The transactions and balances with related parties are summarised as follows:
OUTSTANDING BALANCES
Note
Group
Nostro balances with other subsidiaries and branches of the holding company
Overdrawn nostro balances with other subsidiaries and branches of the holding company
Vostro balances of other subsidiaries and branches of the holding company
Placements with other subsidiaries and branches of the holding company
Deposits of group company
38.1
Due to holding company
Due to group company
Due from other subsidiaries and branches of the company
Interest receivable from group companies
Inter-company derivative assets
Inter-company derivative liabilities
Other receivables - SLA
Transaction-related contingent liabilities - Guarantees
Commitments in respect of forward foreign exchange contracts
Derivative instruments- Interest rate swaps - Notional
Derivative instruments- FX options - Notional
Key management personnel
Loans and advances to key management personnel
Deposits of key management personnel
Others
Loans and advances to customers with common directorship
Deposits by staff retirement benefit funds
Deposits by customers with common directorship
Accrued interest receivable against loans and advances to customers
with common directorship
(Payable to) / receivable from defined benefit plans
Derivative asset
Derivative liabilities
Transaction-related contingent liabilities - Guarantees
Trade-related contingent liabilities - Letter of Credit
2013
2012
-------- (Rupees in '000) --------1,399,406
807,349
456,852
22,158,840
2,909
5,559,289
37,742
63,560
22,516
36,469
408,725
450
17,614,405
2,608,454
7,057,768
405,782
2,310,442
26,650
254,274
19,345,269
12,734
9,014,703
33,867
158,311
1,552
433,119
752,018
416
21,603,912
6,101,969
18,327,414
3,370,375
38.1
38.1
90,001
131,167
102,395
181,751
38.1
38.1
38.1
29,966
325,577
95,858
61,450
40,687
2,482
(27,536)
9,775
29,479
43,288
7,300
65,000
8,504
235,170
35,434
110,596
230
5,310
14,321
(977,596)
731,142
5,600
53,356
119,065
8,622,763
49,496
12,401
93
16,513
4,206,039
697,879
4,466
301,251
137,459
6,706,700
PROFIT AND LOSS
Group
Mark-up / return / interest earned
Mark-up / return / interest expensed
Fee and commission expense
Fee and commission income
Reimbursement of executive and general administrative expenses
Payment to group company for direct sales services rendered
Reimbursement of administrative expenses (including rent and other charges)
Net loss on inter-company derivatives
Royalty expense
Dividend paid
26.3
137
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Note
Key management personnel
Mark-up / return / interest earned
Mark-up / return / interest expensed
Salaries and benefits
Post retirement benefits
Remuneration / fee paid to non-executive directors
2013
2012
-------- (Rupees in '000) ---------
Others
Contribution to defined contribution plans - net of payments received
Charge for defined contribution plans
Net charge / (income) for defined benefit plans
Mark-up / return / interest expensed on deposits of staff retirement benefit funds
Mark-up / return / interest expensed on deposits of customers with common directorship
Mark-up / return / interest earned on advances to customers with common directorship
Donation to The Kidney Centre
26.1.1
Net gain / (loss) on derivatives
Payment made to Central Depository Company of Pakistan Limited
38.2
38.1
3,848
2,316
399,093
18,164
3,630
3,670
4,415
518,809
16,938
3,160
234,710
234,710
7,739
17,382
8,080
7,934
2,000
(46,721)
24,837
297,388
297,388
8,341
15,151
1,943
2,500
83,511
10,303
Net movements in loans and deposits are summarised as follows:
Balance as at
Net
31 December disbursement /
2012
deposits
Loans and advances
Key management personnel
Others
Deposits
Group companies
Key management personnel
Others
Net
repayments /
withdrawals
Balance as at
31 December
2013
---------------------- (Rupees in '000) ------------------------102,395
12,734
181,751
102,137
39,416
563,913
(51,810)
(533,947)
90,001
29,966
729,588
(739,413)
824,945
(875,529)
48,003,867 (47,684,570)
2,909
131,167
421,434
Mr. Mohsin Ali Nathani, CEO of the bank is also Director of Central Depository Company of Pakistan Limited.
39
Capital Adequacy Ratio (CAR) disclosure:
Capital Structure
The State Bank of Pakistan through its BSD Circular No.07 of 2009 dated April 15, 2009 requires the minimum paid up
capital (net of losses) for all locally incorporated banks to be Rs. 10 billion on December 31, 2013. The paid up capital
of the Bank is comfortably in compliance with the SBP requirement.
Furthermore, SBP requires the Bank to maintain prescribed capital to total risk-weighted assets ratios. The capital
adequacy ratios of the Bank were subject to the Basel 3 capital adequacy guidelines stipulated by the State Bank of
Pakistan through its circular BPRD Circular No.6 of 2013 dated August 15, 2013. These instructions are effective from
December 31, 2013 in a phased manner with full implementation intended by December 31, 2019. As of December 31,
2013 the Banks are required to maintain a minimum Common Equity Tier 1 ratio of 5%, Minimum total Tier 1 ratio of
6.5% and total capital adequacy ratio of 10% to total risk weighted assets.
Banking operations are categorised in either the trading book or the banking book, and risk-weighted assets are determined
according to specified requirements that seek to reflect the varying levels of risk attached to assets and off-balance sheet
exposures.
Financial statements and notes
38.2
138 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
The Bank’s regulatory capital is analysed into three tiers, with total Tier 1 capital being the sum of CET1 and ADT1 below:
•
Common Equity Tier I capital (CET1), which includes fully paid up capital (including the bonus shares), balance in share
premium account, general reserves, statutory reserves as disclosed on the balance sheet and un-appropriated profits
(net of accumulated losses, if any). Goodwill and other intangibles are deducted from Tier I capital.
•
Additional Tier I capital (ADT1), which includes perpetual non-cumulative preference shares and share premium resulting
from the same. The Bank did not have any ADT1 as of December 31, 2013
•
Tier II capital includes sub-ordinated debt, revaluation reserves on assets, exchange translation reserves and impairment
allowances that are not held against identified debts. Information on the terms, conditions and other features of the Bank's
sub-ordinated debt currently in issue is given in note 16 to these financial statements. There is a restriction on the amount
of impairment allowances that are not held against identified debts upto 1.25 percent of credit risk weighted assets.
•
The capital to risk weighted asset ratio, calculated in accordance with the State Bank of Pakistan's guidelines on capital
adequacy using Basel III Standardised approach is presented below, except for figure of 2012 which have been calculated
using Basel II standardized approach:
2013
S#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Common Equity Tier 1 capital (CET1): Instruments and reserves
Fully Paid-up Capital/ Capital deposited with SBP
Balance in Share Premium Account
Reserve for issue of Bonus Shares
General/ Statutory Reserves
Gain/(Losses) on derivatives held as Cash Flow Hedge
Unappropriated/unremitted profits/ (losses)
Non-controlling interest arising from CET1 capital instruments issued to
third party by consolidated bank subsidiaries (amount allowed in CET1
capital of the consolidation group)
CET 1 before Regulatory Adjustments
Common Equity Tier 1 capital: Regulatory adjustments
Goodwill (net of related deferred tax liability)
All other intangibles (net of any associated deferred tax liability)
Shortfall of provisions against classified assets
Deferred tax assets that rely on future profitability excluding those arising
from temporary differences (net of related tax liability)
Defined-benefit pension fund net assets
Reciprocal cross holdings in CET1 capital instruments
Cash flow hedge reserve
Investment in own shares/ CET1 instruments
Securitization gain on sale
Capital shortfall of regulated subsidiaries
Deficit on account of revaluation from bank's holdings of property/ AFS
Investments in the capital instruments of banking, financial and insurance
entities that are outside the scope of regulatory consolidation, where the bank
does not own more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above
10% threshold, net of related tax liability)
Amount exceeding 15% threshold
of which: significant investments in the common stocks of financial entities
of which: deferred tax assets arising from temporary differences
National specific regulatory adjustments applied to CET1 capital
Investment in TFCs of other banks exceeding the prescribed limit
2012
Amounts
Amount
Amount
subject to Pre Basel III
treatment
-------- (Rupees in '000) ---------
38,715,850
1,036,090
6,144,462
6,721,973
-
38,715,850
1,036,090
4,032,538
6,846,940
882,322
53,500,696
-
825,841
51,457,259
20,780,495
40,708
-
207,456
-
26,095,310
180,288
-
-
-
-
-
-
-
-
2,401,570
-
-
139
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
2012
Amounts
Amount
Amount
subject to Pre Basel III
treatment
-------- (Rupees in '000) ---------
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Any other deduction specified by SBP (mention details)
Regulatory adjustment applied to CET1 due to insufficient AT1
and Tier 2 to cover deductions
Total regulatory adjustments applied to CET1 (sum of 9 to 25)
Common Equity Tier 1
52
53
54
55
56
57
58
59
60
61
(c=a+b)
Tier 2 Capital
Qualifying Tier 2 capital instruments under Basel III
Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments)
Tier 2 capital instruments issued to third party by consolidated subsidiaries
(amount allowed in group tier 2)
of which: instruments issued by subsidiaries subject to phase out
General Provisions or general reserves for loan losses-up to maximum
of 1.25% of Credit Risk Weighted Assets
Revaluation Reserves
of which: Revaluation reserves on Property
of which: Unrealized Gains/Losses on AFS
Foreign Exchange Translation Reserves
20,821,203
32,679,493
-
26,275,598
25,181,661
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
32,679,493
-
25,181,661
2,250,000
-
2,500,000
560,462
1,577,458
1,529,576
47,882
-
572,303
1,901,106
1,604,429
296,677
Undisclosed/Other Reserves (if any)
T2 before regulatory adjustments
4,387,920
4,973,409
Tier 2 Capital: regulatory adjustments
Portion of deduction applied 50:50 to core capital and supplementary capital
based on pre-Basel III treatment which, during transitional period, remain subject to deduction from tier-2 capital
Reciprocal cross holdings in Tier 2 instruments
Investment in own Tier 2 capital instrument
Investments in the capital instruments of banking, financial and insurance entities that are outside the scope of regulatory consolidation, where
the bank does not own more than 10% of the issued share capital (amount above 10% threshold)
Financial statements and notes
50
51
(a)
Additional Tier 1 (AT 1) Capital
Qualifying Additional Tier-1 instruments plus any related share premium
of which: Classified as equity
of which: Classified as liabilities
Additional Tier-1 capital instruments issued by consolidated subsidiaries
and held by third parties (amount allowed in group AT 1)
of which: instrument issued by subsidiaries subject to phase out
AT1 before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment)
Investment in own AT1 capital instruments
Reciprocal cross holdings in Additional Tier 1 capital instruments
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own
more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based on
pre-Basel III treatment which, during transitional period, remain subject to
deduction from tier-1 capital
Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover deductions
Total of Regulatory Adjustment applied to AT1 capital
Additional Tier 1 capital
Additional Tier 1 capital recognized for capital adequacy
(b)
Tier 1 Capital (CET1 + admissible AT1)
47
48
49
-
140 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
2012
Amounts
Amount
Amount
subject to Pre Basel III
treatment
-------- (Rupees in '000) ---------
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Significant investments in the capital instruments issued by banking,
financial and insurance entities that are outside the scope
of regulatory consolidation
Amount of Regulatory Adjustment applied to T2 capital
Tier 2 capital (T2)
Tier 2 capital recognized for capital adequacy
Excess Additional Tier 1 capital recognized in Tier 2 capital
Total Tier 2 capital admissible for capital adequacy
(d)
TOTAL CAPITAL (T1 + admissible T2)
(e=c+d)
Total Risk Weighted Assets
(i=f+g+h)
Total Credit Risk Weighted Assets
(f)
Risk weighted assets in respect of amounts subject to Pre-Basel III Treatment
of which: recognized portion of investment in capital of banking, financial
and insurance entities where holding is more than 10% of the issued
common share capital of the entity
of which: deferred tax assets
of which: Defined-benefit pension fund net assets
of which: [insert name of adjustment]
Total Market Risk Weighted Assets
(g)
Total Operational Risk Weighted Assets
(h)
80
81
82
83
Capital Ratios and buffers (in percentage of risk weighted assets)
CET1 to total RWA
(a/i)
Tier-1 capital to total RWA
(c/i)
Total capital to RWA
(e/i)
Bank specific buffer requirement (minimum CET1 requirement
plus capital conservation buffer plus any other buffer requirement)
of which: capital conservation buffer requirement
of which: countercyclical buffer requirement
of which: D-SIB or G-SIB buffer requirement
CET1 available to meet buffers (as a percentage of risk weighted assets)
84
85
86
National minimum capital requirements prescribed by SBP
CET1 minimum ratio
Tier 1 minimum ratio
Total capital minimum ratio
87
88
89
Amounts below the thresholds for deduction (before risk weighting)
Non-significant investments in the capital of other financial entities
Significant investments in the common stock of financial entities
Deferred tax assets arising from temporary differences (net of related tax liability)
76
77
78
79
90
91
92
93
Applicable caps on the inclusion of provisions in Tier 2
Provisions eligible for inclusion in Tier 2 in respect of exposures subject
to standardized approach (prior to application of cap)
Cap on inclusion of provisions in Tier 2 under standardized approach
Provisions eligible for inclusion in Tier 2 in respect of exposures subject to
internal ratings-based approach (prior to application of cap)
Cap for inclusion of provisions in Tier 2 under internal ratings-based approach
4,387,920
-
4,973,409
4,387,920
37,067,413
-
4,973,409
30,155,070
219,750,851
169,574,858
6,522,565
-
209,696,559
159,393,085
-
1,961,311
48,214,682
2,287,656
48,015,818
14.87%
14.87%
16.87%
N/A
12.01%
14.38%
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5.00%
6.50%
10.00%
N/A
N/A
10.00%
5,814,108
-
560,462
572,303
N/A
N/A
N/A
N/A
141
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
39.1
Risk-Weighted Exposures
Credit Risk
Balance Sheet Items
Cash and other liquid Assets
Money at call
Investments
Loans and Advances
Fixed Assets
Other Assets
Off Balance Sheet items
Loan Repayment Guarantees
Purchase and Resale Agreements
Performance Bonds etc
Revolving underwriting Commitments
Stand By Letters of Credit
Outstanding Foreign Exchange Contracts
- Purchase
- Sale
Credit risk-weighted exposures
Market Risk
General market risk
Specific market Risk
Foreign Exchange Risk
Market risk-weighted exposures
Operational Risk
Total Risk-Weighted Exposures
39.2
Capital Structure Reconciliation
39.2.1
2012
Risk Adjusted
Value
Book Value
Risk Adjusted
Value
---------------------- (Rupees in '000) ------------------------174,410,489
133,668
222,092
115,732,169
6,172,745
19,437,349
141,698,023
156,098,107
500,000
228,597
168,210,402
6,381,584
15,838,519
347,257,209
94,268
100,000
229,044
112,586,669
6,381,584
6,381,950
125,773,515
221,645
181,606,179
6,172,745
20,224,641
382,635,699
19,305,860
13,833,749
35,427,753
21,482,576
20,413,724
9,802,453
16,588,532
6,961,322
4,785,678
2,913,875
2,925,700
1,314,933
4,209,396
2,442,556
3,699,050
1,476,623
47,419,137
27,876,835
58,668,237
33,619,571
169,574,858
159,393,086
1,344,624
15,071
601,616
1,961,311
1,636,712
650,944
2,287,656
48,214,682
219,750,851
48,015,818
209,696,560
Balance sheet as
in published
financial
statements
2013
Under regulatory
scope of
consolidation
2013
-------- (Rupees in '000) --------32,331,167
1,608,932
22,158,840
146,380,251
146,238,554
6,172,744
55,369,696
410,260,184
32,331,167
1,608,932
22,158,840
146,380,251
146,238,554
6,172,744
5,814,108
55,369,696
416,074,292
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
Liabilities against assets subject to finance lease
Deferred tax liabilities
Other liabilities
Total liabilities
6,540,213
17,291,175
296,377,146
2,500,000
260,651
30,339,110
353,308,295
6,540,213
17,291,175
296,377,146
2,500,000
6,074,759
30,339,110
359,122,403
Share capital/ Head office capital account
Reserves
Unappropriated/ Unremitted profit/ (losses)
Non-controlling interest
Surplus on revaluation of assets
Total liabilities & equity
38,715,850
7,180,552
6,721,973
882,322
3,451,192
410,260,184
38,715,850
7,180,552
6,721,973
882,322
3,451,192
416,074,292
Liabilities & Equity
Financial statements and notes
Assets
Cash and balances with treasury banks
Balanced with other banks
Lending to financial institutions
Investments
Advances
Operating fixed assets
Deferred tax assets
Other assets
Total assets
Book Value
142 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Balance sheet as
in published
financial
statements
2013
39.2.2
Assets
Cash and balances with treasury banks
Balanced with other banks
Lending to financial institutions
Investments
of which: Non-significant capital investments in capital of other financial institutions
exceeding 10% threshold
of which: significant capital investments in financial sector entities exceeding
regulatory threshold
of which: Mutual Funds exceeding regulatory threshold
of which: reciprocal crossholding of capital instrument
of which: others (mention details)
Advances
shortfall in provisions/ excess of total EL amount over eligible provisions under IRB
general provisions reflected in Tier 2 capital
Fixed Assets
Deferred Tax Assets
of which: DTAs excluding those arising from temporary differences
of which: DTAs arising from temporary differences exceeding regulatory threshold
Other assets
of which: Goodwill
of which: Intangibles
of which: Defined-benefit pension fund net assets
Total assets
Under regulatory
scope of
Reference
consolidation
2013
-------- (Rupees in '000) -------32,331,167
1,608,932
22,158,840
146,380,251
-
32,331,167
1,608,932
22,158,840
146,380,251
-
146,238,554
560,462
6,172,744
55,369,696
26,095,310
127,530
410,260,184
146,238,554
560,462
6,172,744
5,814,108
207,456
2,401,570
55,369,696
26,095,310
127,530
416,074,292
Liabilities & Equity
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loans
of which: eligible for inclusion in AT1
of which: eligible for inclusion in Tier 2
Liabilities against assets subject to finance lease
Deferred tax liabilities
of which: DTLs related to goodwill
of which: DTLs related to intangible assets
of which: DTLs related to defined pension fund net assets
of which: other deferred tax liabilities
Other liabilities
Total liabilities
6,540,213
17,291,175
296,377,146
2,500,000
2,250,000
260,651
30,339,110
353,308,295
6,540,213
17,291,175
296,377,146
2,500,000
2,250,000
6,074,759
5,314,815
86,822
12,413
660,709
30,339,110
359,122,403
Share capital
of which: amount eligible for CET1
of which: amount eligible for AT1
Reserves
of which: portion eligible for inclusion in CET1(provide breakup)
of which Statutory Reserves
of which: portion eligible for inclusion in Tier 2
Unappropriated profit/ (losses)
Non-controlling interest
of which: portion eligible for inclusion in CET1
of which: portion eligible for inclusion in AT1
of which: portion eligible for inclusion in Tier 2
Surplus on revaluation of assets
of which: Revaluation reserves on Property
of which: Unrealized Gains/Losses on AFS
In case of Deficit on revaluation (deduction from CET1)
Total liabilities & Equity
39,751,940
39,751,940
6,144,462
6,144,462
6,144,462
6,721,973
882,322
882,322
3,451,192
3,378,993
72,199
410,260,184
39,751,940
39,751,940
6,144,462
6,144,462
6,144,462
6,721,973
882,322
882,322
3,451,192
3,378,993
72,199
416,074,292
Basel III Disclosure Template (with added column)
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u
v
w
x
y
z
aa
ab
143
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
39.2.3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
30
31
32
33
34
35
36
37
38
39
40
41
42
Additional Tier 1 (AT 1) Capital
Qualifying Additional Tier-1 instruments plus any related share premium
of which: Classified as equity
of which: Classified as liabilities
Additional Tier-1 capital instruments issued by consolidated subsidiaries and
held by third parties (amount allowed in group AT 1)
of which: instrument issued by subsidiaries subject to phase out
AT1 before regulatory adjustments
Additional Tier 1 Capital: regulatory adjustments
Investment in mutual funds exceeding the prescribed limit (SBP specific adjustment)
Investment in own AT1 capital instruments
Reciprocal cross holdings in Additional Tier 1 capital instruments
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own more
than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and insurance
entities that are outside the scope of regulatory consolidation
Portion of deduction applied 50:50 to core capital and supplementary capital based on
pre-Basel III treatment which, during transitional period, remain subject to
deduction from tier-1 capital
38,715,850
1,036,090
6,144,462
6,721,973
(s)
(u)
(w)
882,322
53,500,697
(x)
20,780,495
40,708
-
(j) - (o)
(k) - (p)
(f)
-
{(h) - (r} * x%
{(l) - (q)} * x%
(d)
(ab)
-
(a) - (ac) - (ae)
-
(b) - (ad) - (af)
-
(i)
-
20,821,203
32,679,494
-
-
(t)
(m)
-
(y)
-
-
-
-
(ac)
-
(ad)
-
-
Financial statements and notes
23
24
25
26
27
28
29
Common Equity Tier 1 capital (CET1): Instruments and reserves
Fully Paid-up Capital/ Capital deposited with SBP
Balance in Share Premium Account
Reserve for issue of Bonus Shares
General/ Statutory Reserves
Gain/(Losses) on derivatives held as Cash Flow Hedge
Unappropriated/unremitted profits/(losses)
Non-controlling interest arising from CET1 capital instruments issued
to third party by consolidated bank subsidiaries (amount allowed in CET1
capital of the consolidation group)
CET 1 before Regulatory Adjustments
Common Equity Tier 1 capital: Regulatory adjustments
Goodwill (net of related deferred tax liability)
All other intangibles (net of any associated deferred tax liability)
Shortfall of provisions against classified assets
Deferred tax assets that rely on future profitability excluding those arising from
temporary differences (net of related tax liability)
Defined-benefit pension fund net assets
Reciprocal cross holdings in CET1 capital instruments
Cash flow hedge reserve
Investment in own shares/ CET1 instruments
Securitization gain on sale
Capital shortfall of regulated subsidiaries
Deficit on account of revaluation from bank's holdings of property/ AFS
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own
more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
(amount above 10% threshold)
Deferred Tax Assets arising from temporary differences (amount above 10%
threshold, net of related tax liability)
Amount exceeding 15% threshold
of which: significant investments in the common stocks of financial entities
of which: deferred tax assets arising from temporary differences
National specific regulatory adjustments applied to CET1 capital
Investment in TFCs of other banks exceeding the prescribed limit
Any other deduction specified by SBP (mention details)
Regulatory adjustment applied to CET1 due to insufficient AT1 and
Tier 2 to cover deductions
Total regulatory adjustments applied to CET1 (sum of 9 to 25)
Common Equity Tier 1
Component
based
of regulatory Source
on
reference
capital
number from
reported
step 2
by bank
------- (Rupees in '000) -------
144 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
"Component
"Source
of regulatory
based
capital
on reference
reported
number from
by bank "
step 2"
43
44
45
46
Regulatory adjustments applied to Additional Tier 1 due to insufficient
Tier 2 to cover deductions
Total of Regulatory Adjustment applied to AT1 capital
Additional Tier 1 capital
Additional Tier 1 capital recognized for capital adequacy
Tier 1 Capital (CET1 + admissible AT1)
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
Tier 2 Capital
Qualifying Tier 2 capital instruments under Basel III
Capital instruments subject to phase out arrangement from tier 2 (Pre-Basel III instruments)
Tier 2 capital instruments issued to third party by consolidated subsidiaries
(amount allowed in group tier 2)
of which: instruments issued by subsidiaries subject to phase out
General Provisions or general reserves for loan losses-up to maximum
of 1.25% of Credit Risk Weighted Assets
Revaluation Reserves eligible for Tier 2
of which: portion pertaining to Property
of which: portion pertaining to AFS securities
Foreign Exchange Translation Reserves
Undisclosed/Other Reserves (if any)
T2 before regulatory adjustments
Tier 2 Capital: regulatory adjustments
Portion of deduction applied 50:50 to core capital and supplementary capital
based on pre-Basel III treatment which, during transitional period, remain subject
to deduction from tier-2 capital
Reciprocal cross holdings in Tier 2 instruments
Investment in own Tier 2 capital instrument
Investments in the capital instruments of banking, financial and insurance entities
that are outside the scope of regulatory consolidation, where the bank does not own
more than 10% of the issued share capital (amount above 10% threshold)
Significant investments in the capital instruments issued by banking, financial and
insurance entities that are outside the scope of regulatory consolidation
Amount of Regulatory Adjustment applied to T2 capital
Tier 2 capital (T2)
Tier 2 capital recognized for capital adequacy
Excess Additional Tier 1 capital recognized in Tier 2 capital
Total Tier 2 capital admissible for capital adequacy
TOTAL CAPITAL (T1 + admissible T2)
------- (Rupees in '000) -------
-
32,679,494
2,250,000
-
(n)
(z)
560,462
(g)
1,577,458
1,529,576 portion of (aa)
47,882
(v)
4,387,920
-
-
-
(ae)
4,387,920
4,387,920
4,387,920
37,067,414
(af)
-
145
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
39.3 Disclosure template for main features of regulatory capital instruments
Main Features
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Issuer
Unique identifier (eg KSE Symbol or Bloomberg identifier etc.)
Governing law(s) of the instrument
Regulatory treatment
Transitional Basel III rules
Post-transitional Basel III rules
Eligible at solo/ group/ group&solo
Instrument type
Amount recognized in regulatory capital (Currency in
PKR thousands, as of reporting date)
Par value of instrument
Accounting classification
Original date of issuance
Perpetual or dated
Original maturity date
Issuer call subject to prior supervisory approval
Optional call date, contingent call dates and redemption amount
16 Subsequent call dates, if applicable
TFCs
Standard Chartered Bank (Pakistan) Limited
SCBPL
Companies Ordinance, 1984/
Banking Companies Ordinance, 1962
Standard Chartered Bank (Pakistan) Limited
SCBPL
Companies Ordinance, 1984/
Banking Companies Ordinance,
1962/BSD Circular 8 of 2006
Not applicable
Not applicable
Solo and Group
Ordinary shares
Tier 2
Ineligible
Solo and Group
Other Tier 2 (Subordinated Debt)
38,715,850
38,715,850
Shareholders' equity
Dec 2006
Perpetual
Not applicable
No
Not applicable
Not applicable
2,250,000
2,500,000
Liability
June 2012
Dated
31-Dec-22
Yes
May be called, subject to
regulatory approval, at any
time after 60th month from
the issuance date
Not applicable
Variable/Floating
Not applicable
Not applicable
Fully Discretionary
No
Noncumulative
Nonconvertible
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Floating
6 M KIBOR + 0.75% pa
No
Mandatory
No
Cumulative
Nonconvertible
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Subordinated debt/TFCs
No
No
Creditors including Depositors
Yes
Absence of point of non-viability clause
Financial statements and notes
Coupons / dividends
Fixed or floating dividend/ coupon
Coupon rate and any related index/ benchmark
Existence of a dividend stopper
Fully discretionary, partially discretionary or mandatory
Existence of step up or other incentive to redeem
Noncumulative or cumulative
Convertible or non-convertible
If convertible, conversion trigger (s)
If convertible, fully or partially
If convertible, conversion rate
If convertible, mandatory or optional conversion
If convertible, specify instrument type convertible into
If convertible, specify issuer of instrument it converts into
Write-down feature
If write-down, write-down trigger(s)
If write-down, full or partial
If write-down, permanent or temporary
If temporary write-down, description of write-up mechanism
Position in subordination hierarchy in liquidation (specify instrument
type immediately senior to instrument
36 Non-compliant transitioned features
37 If yes, specify non-compliant features
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Common Shares
146 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
39.4
CAPITAL-ASSESSMENT AND ADEQUACY BASEL III SPECIFIC
39.4.1 Scope of applications
The Basel 3 framework is applicable to the Bank both at the consolidated level and also on standalone basis. Subsidiaries are included
while calculating Consolidated Capital Adequacy ratio of the Bank using full consolidation method. The Standardized Approach is used
by the Bank for calculating the Capital Adequacy ratio for Credit, Market and Operational Risk.
39.4.2 Capital Structure
During 2012, the Bank issued unsecured, subordinated TFCs of Rs. 2,500 million by way of private placement. The instrument was
issued at 0.75% above KIBOR to support the capital base of the Bank and is for a tenor of 10 years. The instrument is structured to
redeem in two equal semi-annual instalments of 50% of the issue amount in 2022. The Bank may however call the TFC subject to
prior approval of the State Bank, on any profit payment date after the 60th month from the issuance date. The instrument is also subject
to a lock-in clause meaning neither principal nor profit may be paid (even at maturity) if such payment means that the Bank falls below
or remains below its minimum capital requirements. The instrument is currently rated at AAA.
The instrument is classified as a liability and is subordinated to payment of principal and profit to all other indebtedness of the Bank,
including deposits.
For further details of the capital instrument currently part of Tier 2 capital, please refer Note 16
39.5
Capital Adequacy
The Bank’s capital management approach is driven by its desire to maintain a strong capital base to support the development of its
business, to meet regulatory capital requirements at all times and to maintain good credit ratings, maximising shareholder value and
at the same time maintaining investor, creditor and market confidence.
The capital position is reviewed and monitored by the Asset and Liability Committee (ALCO) of the Bank. Regular reviews help to
ensure that adequate levels of capital and an optimum mix of the different components of capital are maintained by the Bank to support
the strategy. This is integrated with the Bank’s annual planning process that takes into consideration business growth assumptions
across products and business segments and the related impact on capital resources.
The following matters are taken into account while reviewing the Bank's capital position:
a) current regulatory capital requirements and our assessment of future standards;
b) demand for capital due to business growth forecasts;
c) forecasted demand for capital to support credit ratings and as a signalling tool to the market;
d) available supply of capital and capital-raising options
For calculation of Capital Adequacy Ratio, the Bank adheres to the calculation of capital requirements for credit, market and operational
risk as per the guidelines of SBP.
For credit risk, the Bank uses the 'Standardized Approach'. The Bank uses reputable and SBP approved rating agencies (ECAIs) for
deriving risk weights for specific credit exposures. These are consistently applied across the Bank's credit portfolio for both on and
off balance sheet exposures. The ECAIs used for rating various types of exposures are tabled in note 39.6 to these financial statements.
For the purposes of Credit Risk Mitigation under the 'Standardised Approach', the Bank follows the instructions laid down by SBP vide
their Circular No. 08 dated 27 June 2006 with regard to eligibility of collaterals, valuation and management. Where a transaction is
secured by an eligible collateral and meets the eligibility criteria and minimum requirements as laid down by SBP, the Bank reduces
its exposure under that particular transaction by taking into account the risk mitigating effect of the collateral for the calculation of
capital requirement. Collaterals used include: Government of Pakistan guarantees, Inter-group guarantees, margins / liens and saving
certificates.
The Bank calculates its capital requirement for market risk in its portfolio, based on the methodology provided by SBP which takes
account of specific and general market risk capital charge for interest rate risk using the duration method.
For calculation of operational risk capital charge, the business activities of the Bank are divided into eight business lines: corporate
finance, trading and sales, retail banking, commercial banking, payments and settlement, agency services, asset management and
retail brokerage. The Bank's operations are mapped into these eight business lines as per the criteria laid down by SBP vide Circular
No 08 dated 27 June 2006.
Within each business line, gross income is the broad indicator that serves as a proxy for the scale of business operations and thus
the likely scale of operational risk exposure within each of these business lines. The capital charge for each business line is calculated
by multiplying gross income by beta factors assigned by SBP to that business line. Beta serves as a proxy for the industry-wide
relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that
business line.
147
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
The total capital charge is calculated as the three-year average of the simple summation of the regulatory capital charges across each
of the business lines in each year.
The 'Standardised Approach' is preferred over the 'Basic Indicator Approach' so as to arrive at a capital charge that is reflective of
the risks associated with each of the Bank's business lines.
The capital requirements for the major risk categories are indicated below:
Capital Requirements
2013
2012
Credit Risk
Risk Weighted Assets
2013
2012
----------------------------- Rupees in '000 -----------------------------
Portfolios subject to standardized approach (Simple)
Government of Pakistan and State Bank of Pakistan
Public Sector Entities
Banks
Corporate Portfolio
Retail Portfolio
Residential Mortgage Finance
Past Due Portfolio
All other Risk Weighted Assets
13,366
188,006
1,869,263
10,947,765
943,414
104,318
308,131
2,561,009
9,426
380,173
1,789,099
11,205,970
822,915
125,269
307,194
1,276,353
133,668
1,880,062
18,692,632
109,477,658
9,434,148
1,043,186
3,081,318
25,610,094
94,268
3,801,735
17,890,996
112,059,710
8,229,158
1,252,693
3,071,948
12,763,534
22,209
22,904
222,093
229,044
135,969
60,161
163,671
65,094
1,359,694
601,616
1,636,712
650,944
4,821,468
21,975,079
4,801,581
20,969,649
48,214,682
219,750,851
48,015,818
209,696,560
Equity Exposure Risk in the Banking Book
Equity portfolio subject to market-based approaches
Under simple risk weight method
Market Risk
Capital Requirement for portfolios subject to Standardized Approach
Interest rate risk
Equity position risk etc.
Operational Risk
Capital Requirement for operational risks
TOTAL
Capital Adequacy Ratio
2012
(e)
37,067,413
30,155,070
Total Risk Weighted Assets (Note:----)
(i)
219,750,851
209,696,559
16.87%
14.38%
(e) / (i)
Types of exposures and ECAI's used
JCR - VIS
PACRA
STANDARD AND POORS
MOODY'S
FITCH
Corporate
Banks
Sovereigns
a
a
a
a
a
a
a
a
a
a
a
a
a
a
a
The Bank adheres to the mapping instructions issued by SBP on the Revised Regulatory Capital Framework under Basel II, issued
vide BSD Circular No. 8 of 2006 dated 27 June 2006, vide BSD Circular Letter No. 09 of 2007 dated 24 August 2007, vide BSD Letter
No. BSD/BAI-2/201/1141/2009 dated 2 December 2009 and vide BSD Circular No. 5 of 2010 dated 5 October 2010 with regard to
credit ratings to be used. These are as follows:
Financial statements and notes
Total eligible regulatory capital held (Note:-----)
Capital Adequacy Ratio
39.6
2013
148 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
LONG-TERM RATING GRADES MAPPING
Risk
Weightage
Standard & Poors
Ratings Services
Moody’s Investors
Services
Fitch Ratings
PACRA
20%
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2
Ba3
B1
B2
B3
Caa1
Caa2
Caa3
Ca
C
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
50%
100%
100%
150%
150%
JCR VIS
AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BBB+
B
BCCC+
CCC
CCCCC
C
D
SHORT-TERM RATING GRADES MAPPING
Risk
Weightage
Standard & Poors
Ratings
Moody’s Investors
Services
Fitch Ratings
PACRA
20%
A-1+
A-1
A-2
A-3
B
B-1
B-2
B-3
C
P-1
F1+
F1
F2
F3
B
C
D
A-1
A-1
A-2
A-3
Others
A-2
A-3
Others
50%
100%
150%
40.
P-2
P-3
NP
JCR VIS
RISK MANAGEMENT
Through its risk management structure, the Bank seeks to manage efficiently the core risks: credit, market, country, and liquidity risk.
These arise directly through the Bank’s commercial activities whilst compliance and regulatory risk, operational risk and reputational
risks are normal consequences of any business undertaking.
The basic principles of risk management followed by the bank include:
Balancing risk and return
Risk is taken in line with the requirements of the Bank’s stakeholders. Risk should be taken within the Bank's risk appetite, consistent
with the approved strategy. Any such risks are avoided which have a material probability of causing financial distress to the Bank or
its clients or customers.
Responsibility
Given the Bank is in the business of taking risk, it is everyone’s responsibility to ensure that risk taking is both disciplined and focused.
The Bank takes account of its social responsibilities and its commitment to customers in taking risk to produce a return.
Accountability
Risk is taken only within agreed authorities and where there is appropriate infrastructure and resource. All risk taking must be transparent,
controlled and reported.
Anticipation
The Bank looks to anticipate future risks and to ensure awareness of all risk.
Competitive Advantage
The Bank seeks to achieve competitive advantage through efficient and effective risk management and control.
149
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Risk management
The Bank aims to implement best practices and have a specialist risk function of international standards, with strength in depth,
experience across risk types and economic scenarios.
Ultimate responsibility for the effective management of risk rests with the Company’s Board of Directors. Acting within an authority
delegated by the Board, the Executive Committee reviews specific risk areas and monitors the activities of the Country Risk Committee
(“CRC”) and the Asset and Liability Committee (“ALCO”).
CRC headed by Country Chief Risk Officer (CCRO), through authority delegated by the Board through the Bank’s Executive Committee,
is responsible for credit risk, market risk, operational risk, compliance risk and regulatory risk, legal risk and reputational risk. ALCO,
through authority delegated by the Board through the Bank’s Executive Committee, is responsible for management of the Bank's
liquidity, capital adequacy and structural foreign exchange risk. The Pension Executive Committee, through authority delegated by
the Board through the Bank's Executive Committee is responsible for management of pension risk.
The day to day responsibility for managing risk rests with CCRO who oversees and manages the risk through a team of managers;
Senior Credit Officer responsible for credit risk in Wholesale Bank, Country Credit Head responsible for credit risk in Consumer Bank
(including SME), Head of Special Assets Management responsible for remedial risk management, Head of Credit Risk Controls
responsible for collateral management, security documentation, credit MIS and controls, Head of Market Risk responsible for liquidity
risk and risks associated with price movements, arising from interest and exchange rate movements and Head of Operational Risk
responsible for enterprise wide operations. The Bank has established policies, procedures, processes, and controls and have provided
the Risk team adequate support by way of risk systems and tools for measuring and reporting risk for monitoring, controlling, reviewing
and managing risk.
40.1
Credit risk
Credit risk is the risk that a counter party will not settle its obligations in accordance with agreed terms. Credit exposures may arise
from lending, trade finance, securities and derivative exposures. Credit exposures include both individual borrowers and groups of
connected counterparties and portfolios in the banking and trading books.
The Board of Directors has delegated down the authority to CRC through the Bank’s Executive Committee to establish risk appetite
and make recommendations to the Board for approval of risk appetite and policies for managing credit risk. The CEO and the Executive
Committee in turn rely on CCRO and the Risk Committee to determine these and recommend for their support and Board's approval.
The CRC is also delegated down by the BOD responsibility to delegate credit authorities to independent Risk Officers.
Credit risk appetite is established through business strategy papers and underwriting standards by the business managers, which are
approved by the Board once recommended, and supported by the Executive Committee.
Credit concentration risk is governed by specific policy, the adherence to which is managed by the Country Risk Committee (CRC).
Credit concentration risk is principally managed based on three components: single name borrower exposure, industry concentrations
and product concentration. In addition to the SBP specified prudential limits on single or group exposures, limits are also established
by the CCRO and approved by CRC in line with the Credit Reference Level framework (“CRL”).
40.1.1 Wholesale Banking
Within the Wholesale Banking business, an alpha numerical risk grading system is used for quantifying the risk associated with a
counter-party. The grading is based on a probability of default measure, with customers analysed against a range of quantitative and
qualitative measures. Expected Loss is used for further assessment of individual exposures and portfolio analysis. There is a clear
segregation of duties with loan applications being prepared separately from the approval chain.
40.1.2 Consumer Banking
For Consumer Banking, program based standard credit application forms are generally used, which are processed in central units
for different products and market segments. Consumer Banking Analytics team has developed Bureau scores and uses Bureau data
for portfolio monitoring and for underwriting new business. Medium enterprises relationship based business of Consumer Bank operates
much like Wholesale banking with numerical risk grading system for quantifying counter party risk. As with Wholesale Banking,
origination and approval roles are segregated.
Financial statements and notes
Specific procedures for managing credit risk within Wholesale and Consumer (including SME) are determined at the Senior Credit
Officer and Country Credit Head levels for their respective jurisdictions with specific policies and procedures being adapted to different
risk environments and business goals. Credit analysis includes review of facility details, credit grade determination and financial
spreading / ratio analysis. Portfolio review, Early Alerts and Stress Testing based on scenario analysis is a combined responsibility
of Client Relationship and Risk and Finance function. Client relationship origination and credit approval roles are clearly segregated
throughout Wholesale and Consumer Banking segment.
150 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.1.3
2013
Segment by class of business
Advances - Gross
(Rupees
in '000)
Chemical and pharmaceuticals
Agri business
Textile
Communication
Insurance
Telecommunications and information technology
Cement
Deposits
Percent
(Rupees
in '000)
Percent
Contingencies and
Commitments
(Rupees
Percent
in '000)
10,251,784
6.09
4,389,750
1.48
3,039,547
3.88
8,676,633
5.15
311,040
0.10
40,712
0.05
34,057,909
20.22
1,386,837
0.47
2,145,350
2.74
5,523,026
3.28
12,266,053
4.14
1,550,752
1.98
7,167
2,940,894
-
1,160,833
0.39
-
1,895,336
0.64
52,109
0.07
42,081
0.01
217,895
0.28
1.75
-
Sugar
3,695,392
2.19
4,085
Automobile and transportation equipment
3,105,305
1.84
634,871
0.21
Transportation
4,550,181
2.70
1,889,852
0.64
4,024,157
5.13
Financial
2,754,318
1.64
1,157,684
0.39
27,137,097
34.60
Electronics and electrical appliances
Production and transmission of energy
Shoes and leather garments
-
-
95,262
0.12
1,671,820
2.13
3,608,668
2.14
4,521,543
1.53
3,760,774
4.79
24,063,211
14.29
11,959,338
4.04
18,088,312
23.06
2.09
0.65
43,929
0.01
510,006
Individuals
18,297,782
3,524,374
10.86 194,286,431
65.53
1,369
Others
43,369,883
25.75
60,427,483
20.39
16,102,280
20.53
100.00 296,377,146
100.00
78,437,442
100.00
168,426,527
-
2012
Advances - Gross
(Rupees
in '000)
Chemical and pharmaceuticals
Agri business
Textile
Communication
Insurance
Percent
Deposits
(Rupees
in '000)
Percent
Contingencies and
Commitments
(Rupees
Percent
in '000)
12,829,765
7.57
4,164,613
1.56
4,308,516
5.80
5,714,958
3.37
193,476
0.07
34,181
0.05
30,237,698
17.84
938,788
0.35
1,655,619
2.23
1,388,001
0.82
15,083,632
5.66
2,437,299
3.28
82,756
0.05
1,771,289
0.66
Telecommunications and information technology
5,896,228
3.48
2,457,249
0.92
44,628
0.06
Cement
5,518,402
3.26
15,671
0.01
823,837
1.11
Sugar
3,641,047
2.15
1,333
0.00
90,292
0.12
Automobile and transportation equipment
2,694,687
1.59
849,140
0.32
1,171,576
1.58
Transportaion
3,454,322
2.04
3,466,291
1.30
1,373,578
1.85
Financial
2,997,424
1.77
1,801,595
0.68
28,726,780
38.65
Electronics and electrical appliances
1,835,769
1.08
3,487,607
1.31
4,975,420
6.69
25,034,067
14.77
11,080,729
4.16
16,017,525
21.55
2,542,747
1.50
94,264
0.04
153,727
0.21
Production and transmission of energy
Shoes and leather garments
-
-
Individuals
18,540,916
10.94 172,525,710
64.69
1,369
0.00
Others
47,080,972
27.78
48,667,184
18.27
12,514,751
16.83
100.00 266,598,571
100.00
74,329,098
100.00
169,489,759
151
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.1.4
Details of non-performing advances and specific provisions
by class of business segment
2013
Classified
Advances
2012
Specific
Provision
held
Classified
Advances
293,141
130,836
7,675,684
5,997
329,555
49,326
222,903
3,678,062
9,242,007
21,627,511
341,443
284,892
132,341
36,263
7,666,191 7,583,248
16,564
15,645
358,068
353,970
52,419
50,397
127,708
127,708
5,686,747 4,495,590
13,092,364 11,051,471
27,473,845 23,999,184
Specific
Provision
held
----------------------------- (Rupees in '000) -----------------------
Chemical and pharmaceuticals
Agri business
Textile
Footwear and Leather garments
Automobile and transportation equipment
Financial
Production and transmission of energy
Individuals
Others
40.1.5
345,632
158,674
7,855,046
5,997
340,210
49,326
222,904
4,684,982
11,275,668
24,938,439
Segment by sector
2013
Advances
(Rupees
in '000)
Public / Government
Private
11,233,776
157,192,751
168,426,527
Deposits
%
(Rupees
in '000)
Contingencies and
Commitments
(Rupees
%
in '000)
%
6.67%
4,593,589
93.33% 291,783,557
100% 296,377,146
1.55% 8,400,266
98.45% 70,067,199
100% 78,467,465
10.71%
89.29%
100%
2012
Advances
(Rupees
in '000)
Public / Government
Private
%
(Rupees
in '000)
%
6.39%
4,138,018
93.61% 262,460,553
100% 266,598,571
Details of non-performing advances and specific provisions by sector
Contingencies and
Commitments
(Rupees
%
in '000)
1.55% 3,398,836
98.45% 70,930,263
100% 74,329,099
2013
Classified
Advances
4.57%
95.43%
100%
2012
Specific
Provision
held
Classified
Advances
24,938,439
24,938,439
21,627,511
21,627,511
27,473,845 23,999,184
27,473,845 23,999,184
Profit
before
taxation
Total
assets
employed
Specific
Provision
held
----------------------------- (Rupees in '000) -----------------------
Public / Government
Private
40.1.7
GEOGRAPHICAL SEGMENT ANALYSIS
2013
Net Assets
employed
Contingencies
and
Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
16,368,185 410,260,184
16,368,185 410,260,184
56,951,889 78,467,464
56,951,889 78,467,464
2012
Profit
before
taxation
Total
assets
employed
Net Assets Contingencies
employed
and
Commitments
----------------------------- (Rupees in '000) -----------------------
Pakistan
9,322,355 399,055,450
9,322,355 399,055,450
55,424,068 74,329,098
55,424,068 74,329,098
Financial statements and notes
40.1.6
10,826,928
158,662,831
169,489,759
Deposits
152 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.2
Market Risk
The Bank recognises market risk as the exposures created by potential changes in market prices and rates. Market risk exposures
arise primarily from interest rate and foreign exchange related contracts. The Bank has no significant exposure to equity and commodity
price risk.
Market risk is managed by the Head of Market Risk reporting directly to the CCRO, who agrees policies and procedures and levels
of risk appetite in terms of Value at Risk ("VaR"). Limits are then proposed by the business within the terms of agreed policy. These
are agreed and delegated down by RC under delegated authority from the BOD, and are monitored by the Head of Market Risk as
part of an independent risk management function. Policies cover both trading and non-trading books.
In addition to market risk policies, as well as VaR and other market risk limits, independent stress testing of portfolios, factor sensitivity
measures and derivatives are also employed as additional risk management tools to manage and hedge market risk exposures. Risk
models are periodically back tested against actual results to ensure that pre-determined levels of accuracy are maintained.
40.3
Foreign Exchange Risk
2013
Assets
Liabilities
Off-balance
sheet items
Net foreign
currency
exposure
----------------------------------------- (Rupees in '000) -----------------------------------
Pakistan rupee
United States dollar
Great Britain pound
Euro
Swiss Franc
Japanese Yen
Others
311,706,336
44,295,260
6,144,750
5,298,447
19,390
169,777
35,048
367,669,008
285,811,819
54,773,814
6,139,909
5,225,455
25,064
176,553
42,804
352,195,418
Assets
Liabilities
43,642,526
(36,301,863)
(832,886)
(3,509,463)
(123,497)
(2,172,093)
(702,724)
-
69,537,043
(46,780,417)
(828,045)
(3,436,471)
(129,171)
(2,178,869)
(710,480)
15,473,590
2012
Off-balance
sheet items
Net foreign
currency
exposure
------------------------------------------- (Rupees in '000) -------------------------------------
Pakistan rupee
United States dollar
Great Britain pound
Euro
Swiss Franc
Japanese yen
Others
283,257,128
62,079,954
4,840,138
4,396,617
22,420
46,712
38,006
354,680,975
269,041,777
64,306,661
4,892,279
4,504,075
22,483
36,799
24,437
342,828,511
47,310,939
(41,413,711)
(125,476)
(2,950,089)
(27,538)
(2,211,800)
(582,325)
-
61,526,290
(43,640,418)
(177,617)
(3,057,547)
(27,601)
(2,201,887)
(568,756)
11,852,464
40.3.1 Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates.
40.3.2 The management sets limits on the level of exposure by currency in total, for both overnight and intra day positions which are monitored
daily.
153
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.4
MISMATCH OF INTEREST RATE SENSITIVE ASSETS AND LIABILITIES
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
Deposits and other accounts
Sub-ordinated loan - TFCs
Other liabilities
On-balance sheet gap
Effective
yield /
interest
rate
-
Total
2013
Exposed to yeid / interest rate risk
Over two Over three
Over one
Over three Over six
years to
years to
year to
months to months to
two years three years five years
six months one year
Over ten
Over five
Over one
years
years to
month to
ten years
three
months
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
Non interest
bearing
financial
instruments
32,331,167
1,608,932
23,131,116
1,608,932
Upto one
month
9,200,051
-
5,055,581
77,346,433
38,452,983
120,854,997
7,532,546
14,933,104
22,465,650
6,540,213
9.35% 17,291,175
998,018 9,005,014
5.93% 296,377,146 152,099,909 7,252,214
9.67%
2,500,000
29,486,884
352,195,418 153,097,927 16,257,228
15,473,590 (30,205,521) 104,597,769
2.58% 22,158,840 17,103,259
9.83% 146,380,251 20,953,126
10.71% 146,238,554 75,635,970
18,951,264
367,669,008 122,892,406
8,154,701
3,873,838
12,028,539
18,506,841
3,267,051
21,773,892
13,662,786
3,084,645
16,747,431
918,866
3,630,520
4,549,386
(583,505)
352,392
(231,113)
257,586
257,586
4,670,543
2,929,526
2,500,000
10,100,069
12,365,581
11,616
248,880
4,752,001
664,378
4,763,617
913,258
7,264,922 20,860,634
411,917
398,403
810,320
15,937,111
222,354
222,354
4,327,032
901,512
1,000
902,512
(1,133,625)
133,333
1,103,000
1,236,333
1,200,000
1,200,000
7,191,278
7,191,278
9,866,196
9,866,196
910,005
910,005
-
-
3,943,950 10,525,773
3,943,950 10,525,773
(2,707,617) (9,325,773)
4,241,359
4,241,359
2,949,919
1,966,058
1,966,058
7,900,138
910,005
910,005
-
-
-
18,887,030 12,227,170
(1,133,625)
(111,543)
2,750,465
18,951,264
46,330,234
6,540,213
821,321
- 128,279,715
- 29,486,884
- 165,128,133
257,586 (118,797,899)
Off-balance sheet financial instruments
Forward Lending
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Forward Borrowing
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Off-balance sheet gap
Total yield / interest risk sensitivity gap
24,805,505
405,781
88,259,248
113,470,534
5,392,347
380,565
32,131,937 42,531,211
32,512,502 47,923,558
112,346
25,216
12,493,100
12,630,662
23,420,975
405,781
77,242,740
101,069,496
12,401,038
1,721,484
380,565
39,108,124 31,640,920
39,488,689 33,362,404
(6,976,187) 14,561,154
112,346
25,216
6,493,696
6,631,258
5,999,404
27,874,628 (37,181,708) 119,158,923
18,364,985
Cumulative yield / interest risk sensitivity gap
On-balance sheet financial instruments
Liabilities
Bills payable
Borrowings
Deposits and other accounts
Sub-ordinated loan - TFCs
Other liabilities
On-balance sheet gap
11,534,861
257,586 (118,797,899)
81,977,215 100,342,200 104,899,505 116,434,366 135,321,396 147,548,566 146,414,941 146,672,527
Effective
yield /
interest
rate
-
Total
2012
Exposed to yeid / interest rate risk
Over two Over three
Over one
Over six
years to
years to
year to
months to
two years three years five years
one year
Over ten
Over five
Over one Over three
years
years to
months to
month to
ten years
six months
three
months
-----------------------------------------------------------------------(Rupees in '000)------------------------------------------------------------------------
Non interest
bearing
financial
instruments
31,487,972
2,700,218
23,821,258
2,700,218
Upto one
month
7,666,714
-
-
-
-
-
-
-
-
-
2.93% 19,845,269 17,709,484 1,650,379
11.18% 131,741,003 15,141,992 16,440,533
12.31% 144,918,272 74,166,339 34,894,466
23,988,241
354,680,975 114,684,529 52,985,378
485,406
1,006,939
21,167,924
22,660,269
84,607,022
4,567,896
89,174,918
4,118,045
3,179,885
7,297,930
6,114,573
1,929,072
8,043,645
4,716,492
1,775,967
6,492,459
(581,365)
137,246
(444,119)
176,772
197,119 2,902,358
- 23,988,241
197,119 53,588,847
6,164,867
7.79% 23,399,389
6,804,482 8,124,609
6.32% 266,598,571 137,883,984 7,632,326
13.06%
2,750,000
250,000
43,915,684
342,828,511 144,688,466 16,006,935
11,852,464 (30,003,937) 36,978,443
6,011,959
4,244,037
2,500,000
12,755,996
9,904,273
17,473
7,425,298
7,442,771
81,732,147
33,338
766,693
800,031
6,497,899
373,987
669,020
1,043,007
7,000,638
739,952
739,952
5,752,507
1,262,585
1,262,585
(1,706,704)
577,544
577,544
1,600,000 14,446,735
1,600,000 14,446,735
2,748,210
2,748,210
-
-
9,250,028
9,250,028
5,196,707
862,689
862,689
1,885,521
-
-
(4,095,670) 10,949,214
178,817
197,119
6,164,867
31,004
107,977,213
43,915,684
158,088,768
(104,499,921)
Off-balance sheet financial instruments
Forward Lending
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
37,581,238
3,370,375
35,333,170
76,284,783
238,095
1,657,015
9,655,486 15,317,400
9,655,486 17,212,510
1,457,246
1,713,360
10,313,487
13,484,093
16,513,408
46,797
16,560,205
Forward Borrowing
Interest Rate Swap
Foreign Currency option
Forward Foreign Exchange Contracts
Off-balance sheet gap
39,231,837
3,370,375
33,612,948
76,215,160
69,623
266,262
922,438
1,657,015
19,334,185 10,074,264
19,600,447 12,653,717
(9,944,961) 4,558,793
183,154
1,713,360
4,157,702
6,054,216
7,429,877
10,588,131
46,797
10,634,928
5,925,277
Total yield / interest risk sensitivity gap
11,922,087 (39,948,898) 41,537,236
17,334,150
87,657,424
Cumulative yield / interest risk sensitivity gap
1,588,338
4,462,827 12,696,308
4,462,827 12,696,308
(3,885,283) (11,096,308)
2,612,616
197,119 (104,499,921)
18,922,488 106,579,912 109,192,528 105,096,858 116,046,072 116,224,889 116,422,008
Financial statements and notes
Assets
Cash and balances with
treasury banks
Balances with other banks
Lendings to financial
institutions
Investments
Advances
Other assets
4,557,305
154 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.5
Yield / Interest Rate Risk
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
financial instruments will fluctuate due to changes in the market interest rates. The Bank is exposed to various risks associated with
the effects of fluctuations in the prevailing levels of market interest rates on its financial position and cash flows. The Bank manages
this risk by matching the re-pricing of assets and liabilities and off-balance sheet instruments.
40.6
Liquidity Risk
The Bank defines liquidity risk as the risk that the Bank either does not have sufficient financial resources available to meet all its
obligations and commitments as and when they fall due, or can access them only at an excessive cost.
Liquidity risk, both short term and structural is monitored through the internal liquidity risk management framework and is managed
through the Asset and Liability Committee ("ALCO"). This committee, chaired by the CEO, is responsible for liquidity risk management.
Liquidity risk is monitored through the internal liquidity risk management policy. A range of tools are used for the management of
liquidity. These comprise commitment and wholesale borrowing guidelines, key balance sheet ratios, medium term funding requirements
and day to day monitoring of future cash flows.
In addition, liquidity contingency funding plans are reviewed periodically to ensure that alternative funding strategies are in place and
can be implemented on a timely basis to minimise the liquidity risk that may arise due to unforeseen adverse changes in the market
place.
A substantial portion of the Bank’s assets are funded by customer deposits made up of current and savings accounts and other
deposits. These customer deposits, which are widely diversified by type and maturity, represent a stable source of funds.
The Bank also maintains significant levels of marketable securities either for compliance with local statutory requirements or as
prudential investments of surplus funds.
40.7
MATURITIES OF ASSETS AND LIABILITIES - based on contractual maturity of assets and liabilities of the group
In accordance with the guidelines issued by SBP through BSD Circular Letter No. 3 of 2011 and BSD Circular Letter No. 2 of 2013,
Banks are required to disclose maturities of assets and liabilities separately for 'contractual maturities' and 'expected maturities'. The
expected maturities are calculated using three (3) years historical balances and identifying "Core" and "Non-Core" balances using
monthly volatility analysis. Fixed / intangible assets are presented on the basis of their depreciation / amortisation schedule.
155
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
2013
Total
Upto one
month
Over three
months to
six months
Over six
months to
one year
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with treasury bank
Over one
month to
three months
32,331,167
32,331,167
-
-
-
-
-
-
-
1,608,932
1,608,932
-
-
-
-
-
-
-
-
22,158,840
17,103,259
5,055,581
-
-
-
-
-
-
-
Investments
146,380,251
19,622,173
77,657,925
7,532,546
8,154,701
18,506,841
13,662,786
1,203,891
39,388
Advances
146,238,554
72,610,262
31,566,825
10,675,705
3,378,562
5,012,177
7,573,716
9,234,459
3,991,877
29,146,856
4,044,778
12,435,715
427,145
2,423,670
3,668,938
5,944,729
193,229
8,539
113
6,172,744
14,605
29,256
43,945
87,888
231,742
188,966
342,583
786,285
4,447,474
26,222,840
919
1,838
2,756
5,513
11,025
11,129
21,522
53,483
26,114,655
Balances with other banks
Lendings to financial institutions
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
-
-
126,747,140
18,682,097
-
-
14,050,334
27,430,723
-
410,260,184
147,336,095
27,381,326
Bills payable
6,540,213
6,540,213
Borrowings
17,291,175
1,094,339
9,005,014
4,753,876
178,282
490,547
528,584
296,377,146
280,379,623
7,252,214
2,929,527
4,752,001
664,378
398,403
10,995,684
4,879,572
-
2,194,971
32,757,213
Liabilities
Deposits and other accounts
Sub-ordinated loan - TFCs
Deferred tax liabilities
Other liabilities
-
-
-
-
-
2,500,000
-
-
-
-
-
-
260,651
-
-
-
-
-
-
30,339,110
5,651,097
6,255,794
2,971,732
11,336,539
1,069,029
1,565,135
339,021
-
-
901,512
-
-
1,000
-
-
2,500,000
-
260,651
1,481,245
8,539
353,308,295
293,665,272
22,513,022
10,655,135
16,266,822
2,223,954
2,492,122
2,080,916
3,411,051
56,951,889
(146,329,177)
104,234,118
8,026,962
(2,216,488)
25,206,769
24,889,204
8,914,768
1,468,521
32,757,213
Net assets
Share capital
38,715,850
Reserves
7,180,552
Unappropriated profit
6,721,973
Surplus/(deficit) on revaluation of assets
3,451,192
Non-controlling interest
882,322
56,951,889
2012
Total
Assets
Cash and balances with treasury bank
Balances with other banks
Upto one
month
Over one
Over three
Over six
Over one
Over two
Over three
Over five
month to
months to
months to
year to
years to
years to
years to
three months
six months
one year
two years
three years
five years
ten years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Over ten
years
31,487,972
31,487,972
-
-
-
-
-
-
-
-
2,700,218
2,700,218
-
-
-
-
-
-
-
-
Lendings to financial
19,845,269
17,709,484
1,650,379
485,406
131,741,003
14,409,701
16,440,533
1,006,939
84,607,022
4,118,045
6,114,573
4,716,492
327,698
Advances
144,918,272
63,885,938
23,297,224
15,310,197
6,852,981
13,264,692
6,712,668
7,018,894
6,642,290
34,257,981
623,173
15,753,628
9,615,106
7,318,214
20,764
220,291
520,208
186,597
6,381,584
15,799
31,527
47,364
94,967
311,385
197,777
371,660
884,113
4,426,991
26,275,598
648
1,293
1,940
3,881
7,761
8,237
15,524
37,719
26,198,596
1,447,553
75,991
399,055,450
130,908,923
Bills payable
6,164,867
6,164,867
Borrowings
23,399,389
6,835,486
8,124,609
6,011,959
17,473
33,338
373,987
266,598,571
245,861,197
7,632,326
4,244,037
7,425,298
766,693
669,020
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
57,174,584
26,466,952
-
98,877,065
-
17,722,647
-
13,253,546
-
1,371,562
14,014,340
-
8,078,417
1,933,388
-
32,558,975
Liabilities
Deposits and other accounts
Sub-ordinated loan - TFCs
Other liabilities
2,750,000
-
-
-
-
-
-
-
739,952
-
1,262,585
2,500,000
-
14,921,341
7,814,991
1,387,895
9,683,161
4,970,065
3,807,404
1,557,127
576,571
-
343,631,382
273,782,891
23,821,926
11,643,891
17,125,932
5,770,096
4,850,411
2,297,079
4,339,156
-
55,424,068
(142,873,968)
33,352,658
14,823,061
81,751,133
11,952,551
8,403,135
11,717,261
3,739,261
38,715,850
Reserves
5,068,628
Unappropriated profit
6,846,940
Surplus/(deficit) on revaluation of assets
3,966,809
Non-controlling interest
250,000
-
44,718,555
Net assets
Share capital
-
-
825,841
55,424,068
32,558,975
Financial statements and notes
institutions
Investments
156 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.8
MATURITIES OF ASSETS AND LIABILITIES - based on expected maturity of assets and liabilities of the bank
2013
Total
Upto one
month
Over one
month to
three months
Over three
months to
six months
Over six
months to
one year
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with
treasury banks
Balances with other banks
Lendings to financial institutions
32,331,167
32,331,167
-
-
-
-
-
-
-
-
1,608,932
1,608,932
-
-
-
-
-
-
-
-
22,158,840
17,103,259
5,055,581
Investments
146,380,251
19,622,173
77,657,925
7,532,546
8,154,701
18,506,841
13,662,786
1,203,891
39,388
Advances
146,238,554
27,169,117
34,031,850
14,373,242
10,773,635
36,895,687
7,573,716
9,234,459
3,991,877
29,146,856
4,044,777
12,435,716
427,145
2,423,670
3,668,938
5,944,729
193,229
8,539
113
6,172,744
14,605
29,256
43,945
87,888
231,742
188,966
342,583
786,285
4,447,474
26,222,840
919
1,838
2,756
5,513
11,025
11,129
21,522
53,483
26,114,655
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
-
-
129,212,166
-
22,379,634
-
21,445,407
-
59,314,233
-
-
410,260,184
101,894,949
27,381,326
Bills payable
6,540,213
6,540,213
Borrowings
17,291,175
1,094,340
9,005,014
4,753,876
178,282
490,547
528,584
296,377,146
27,788,513
14,640,373
14,011,764
26,916,477
212,620,616
398,403
-
10,995,684
-
4,879,572
2,194,971
32,757,213
Liabilities
Deposits and other accounts
Sub-ordinated loans
Deferred tax liabilities
Other liabilities
2,500,000
260,651
-
-
-
-
-
-
-
-
-
-
-
339,021
901,512
-
-
1,000
-
-
2,500,000
-
260,651
-
-
30,339,110
5,651,097
6,255,794
2,971,732
11,336,539
1,069,029
1,565,135
1,481,245
8,539
-
353,308,295
41,074,163
29,901,181
21,737,372
38,431,298
214,180,192
2,492,122
2,080,917
3,411,051
-
56,951,889
60,820,786
99,310,985
642,262
(16,985,891)
(154,865,959)
24,889,204
8,914,767
1,468,521
Over one
year to
two years
Over two
years to
three years
Over three
years to
five years
32,757,213
Net assets
Share capital
38,715,850
Reserves
7,180,552
Unappropriated profit
6,721,973
Surplus on revaluation
of assets - net
Non-controlling interest
3,451,192
882,322
56,951,889
2012
Total
Upto one
month
Over one
month to
three months
Over three
months to
six months
Over six
months to
one year
Over five
years to
ten years
Over ten
years
------------------------------------------------------------------------------(Rupees in '000)----------------------------------------------------------------------------
Assets
Cash and balances with
treasury banks
Balances with other banks
31,487,972
31,487,972
-
-
-
-
-
-
-
-
2,700,218
2,700,218
-
-
-
-
-
-
-
-
Lendings to financial
institutions
19,845,269
17,709,484
1,650,379
485,406
Investments
131,741,003
14,409,701
16,440,533
1,006,939
84,607,022
4,118,045
6,114,573
4,716,492
327,698
Advances
144,918,272
20,581,671
25,219,929
18,194,255
12,621,096
45,994,081
6,712,668
7,018,894
6,642,290
34,257,981
623,173
15,753,628
9,615,106
7,318,214
20,764
220,291
520,208
186,597
6,381,584
15,799
31,527
47,364
94,967
311,385
197,777
371,660
884,113
4,426,991
26,275,598
647
1,293
1,940
3,881
7,761
8,237
15,524
37,719
26,198,596
1,447,553
75,991
399,055,450
87,604,656
Bills payable
6,164,867
6,164,867
Borrowings
23,399,389
6,835,486
8,124,609
6,011,959
17,473
33,338
373,987
266,598,571
23,765,305
14,423,041
14,430,109
27,797,441
185,513,655
669,020
2,750,000
250,000
Other assets
Operating fixed assets
Intangible assets
Deferred tax assets
59,097,289
29,351,010
-
104,645,180
-
50,452,036
-
13,253,546
-
1,371,562
14,014,340
-
8,078,417
1,933,388
-
32,558,975
Liabilities
Deposits and other accounts
Sub-ordinated loans
Other liabilities
-
-
-
-
-
739,952
-
1,262,585
2,500,000
-
1,833,477
12,615,826
1,852,128
25,214,583
883,373
832,474
1,356,268
130,046
380
38,849,135
35,163,476
22,294,196
53,029,497
186,430,366
1,875,481
2,096,220
3,892,631
380
55,424,068
48,755,521
23,933,813
7,056,814
51,615,683
(135,978,330)
11,378,065
11,918,120
4,185,786
32,558,595
38,715,850
5,068,628
Unappropriated profit
6,846,940
Deficit on revaluation
of assets - net
-
-
44,718,555
Reserves
Non-controlling interest
-
-
343,631,382
Net assets
Share capital
-
3,966,809
825,841
55,424,068
157
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
40.9
Operational Risk
Operational risk is the risk of a direct or indirect loss being incurred due to an event or action arising from the failure of technology,
processes, infrastructure, personnel and impact of external events.
The Country Operational Risk Committee ("CORC") has been established to ensure that an appropriate risk management framework
is in place at a grass root level, and to report, monitor and manage operational, social, ethical and environmental risk. The CORC is
chaired by the CEO, and CCRO is an active member of this forum.
All business units within the Bank monitor their operational risks using set standards and indicators. Significant issues and exceptions
are reported to CORC and are also picked up by the independent Risk function for discussion at the Country Risk Committee chaired
by the CCRO. Disaster recovery procedures, business contingency planning, self-compliance assurance and internal audits also form
an integral part of the operational risk management process.
41
ISLAMIC BANKING BUSINESS
The Bank is operating with 10 Islamic Banking branches at the end of current period (December 2012: 14 branches).
41.1
Balance Sheet
Assets
Cash and balances with treasury banks
Balances with other banks
Due from Financial Institutions
Investments
Islamic Financing and Related Assets
Operating fixed assets
Other assets
Note
41.1.1
Liabilities
Bills payable
Due to Financial Institutions
Due to Head Office
Other liabilities
Net Assets
Represented by:
Islamic Banking Fund
Unappropriated/ Unremitted profit
Surplus / (deficit) on revaluation of assets - net
41.3
1,899,718
5,055,581
10,848,738
27,921,996
196,569
606,873
46,529,475
1,967,261
5,537,533
500,000
8,685,651
18,575,327
209,301
395,812
35,870,885
2,760
1,060,000
10,108
1,368,000
20,042,224
11,816,177
2,721,606
256
34,580,263
5,709,033
130,390
41,482,446
5,047,029
16,020,883
10,784,418
3,200,580
27,390
206,593
30,239,864
449,923
806,046
32,873,941
2,996,944
200,000
4,754,891
4,954,891
92,138
5,047,029
200,000
2,886,293
3,086,293
(89,349)
2,996,944
Financial statements and notes
Deposits and other accounts
Current Accounts
Saving Accounts
Term Deposits
Others
Deposit from Financial Institutions -Remunerative
Deposits from Financial Institutions-Non-Remunerative
2013
2012
-------- (Rupees in '000) ---------
158 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Note
CONTINGENCIES AND COMMITMENTS
21
Remuneration to Shariah Advisor/Board
Charity fund
Opening balance
Additions during the year
Payments / utilization during the year
Closing balance
41.1.1 Islamic Mode of Financing
Murabaha
Musharaka
Diminishing Musharaka
Istisna
Musawammah
Others
41.1.1a
Murabaha
Financings/Investments/Receivables
Advances
Assets/Inventories
41.1.1b
Musharaka
Financings/Investments/Receivables
41.1.1c
Diminishing Musharaka
Financings/Investments/Receivables
41.1.1d
Istisna
Financings/Investments/Receivables
41.1.1e
Musawammah
Financings/Investments/Receivables
41.1.1f
Others
Financings/Investments/Receivables
41.2
Profit and Loss
Profit / return earned on financings, investments and placements
Return on deposits and others dues expensed
Net spread earned
(Reversal) / provision against non performing financing
Net spread after provisions
Other income
Fees, commission and brokerage income
Other income
Total other income
Other expenses
Administrative expenses
Profit before taxation
41.3
This includes acceptances of Rs.NIL (2012: Rs 661 million).
2013
2012
-------- (Rupees in '000) ---------
41.1.1a
41.1.1b
41.1.1c
41.1.1d
41.1.1e
41.1.1f
3,218
1,087
20,411
4,294
(23,634)
1,071
2,023
30,064
(11,676)
20,411
11,645,654
5,597,541
9,166,725
1,223,843
98,850
189,383
27,921,996
5,516,120
12,887,191
172,016
18,575,327
4,971,128
6,379,093
295,433
11,645,654
2,834,787
2,681,333
5,516,120
5,597,541
5,597,541
9,166,725
9,166,725
12,887,191
12,887,191
1,223,843
1,223,843
-
98,850
98,850
-
189,383
189,383
172,016
172,016
3,328,123
(934,810)
2,393,313
(191,960)
2,201,353
3,008,214
(898,256)
2,109,958
172,890
2,282,848
654,097
755
654,852
2,856,205
765,288
181
765,469
3,048,317
(987,607)
1,868,598
(1,785,178)
1,263,139
159
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
41.4
Profit & Loss distribution and Pool Management
The Bank manages following assets pools for profit and loss distribution:
a) Islamic Export Refinance Scheme (IERS) Musharakah Pool; and
b) Mubarabah Depositors Pool
a) IERS Musharakah Pool
Key features, risks, rewards and calculation of profit/loss of this pool are in compliance with the SBP IER Scheme and the relevant
circulars issued by SBP from time to time.
b) Mubarabah Depositors Pool
i) Key features and risk & reward characteristics
Deposits are accepted from customers on the basis of Qard for current accounts and Mudaraba for Saving and Term deposits. Current
Accounts are not part of the Mudaraba Pool hence no profit or loss is passed on to current account depositors.
For deposits accepted on Mudaraba basis from depositors (Rab-ul-Maal), the Bank acts as Manager (Mudarib) and invests the funds
in Shariah Compliant modes of financings. Depositor’s (Rab-ul-Maal) share is distributed among the various categories of depositors
according to weightages declared for a month before start of the period for the relevant categories.
In case of loss in a pool during the profit calculation period, the loss will be distributed among the depositors (remunerative) according
to their ratio of investment.
ii) Parameters used for allocation of profit, charging expenses and provisions
The profit of deposit pool is calculated on all the remunerative assets tagged to the Mudaraba Pool, by utilising the funds from the
pool after deduction of expenses directly incurred in earning the income of such pool, if any. The framework and the methodology is
duly approved by the Shariah Advisor. Resultant profit, net of Bank’s share as investor, is distributed between Mudarib and Rab-ulMaal based on sharing ratio declared before start of month.
iii) Deployment of Mudaraba based deposits
The deposits and funds accepted under the above mentioned pools are provided to diverse sectors including Cement, Chemical,
Pharmaceuticals, Communication, Sugar, Textile, Agribusiness, Transport etc. as well as in Government of Pakistan backed Ijarah
Sukuks.
Financial statements and notes
The ratio for Mudarib and Rab-ul-maal was 50:50 in both general and special pools. No expense of general or administrative nature
or any provision against any non-performing asset of the pool is passed on to the pool except on the actual loss / write-off of such
non-performing asset.
160 Standard Chartered Annual Report 2013
Notes to the Consolidated Financial Statements
For the year ended 31 December 2013
Type of Pool
iv) Other information
General
Profit rate / weightage announcement frequency
Monthly
Monthly
513,889
59,959
Mudarib share (%)
43.35%
21.27%
Mudarib Share transferred through Hiba (amount in 000)
78,817
81,014
Mudarib Share transferred through Hiba (%)
13.30%
57.47%
Average return on pool assets
10.35%
9.78%
5.87%
7.76%
Mudarib share (amount in 000)
Average return on deposits
42
Special
DATE OF AUTHORIZATION
These financial statements were authorized for issue in the Board of Directors meeting held on 05 March 2014.
Khalid Elgibaly
Chief Executive
Najam I. Chaudhri
Director
Parvez Ghias
Director
Raheel Ahmed
Director
161
Consolidated Statement of Financial Position
Annexure-1
Statement in respect of written-off loans or any other financial relief of five hundred thousand rupees or above as required under sub-section (3)
of section 33A of the Banking Companies Ordinance, 1962 during the year ended 31 December, 2013.
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year
Principle
Interest/
Markup
Total
Amount Written off / Concession
Principle
Interest/
Markup
Total
Balance
(Gross)
3,604,091
1
Faisal Khurshid
51 Attaturk Block New Garden Town Lahore
35202-5455216-9
Mirza Khurshid Anwar
5,398,883
2,254,369
7,653,253
1,349,721
2,254,369
2
Sh. Jawaid Iqbal
885 Shadman Colony No 1 Lahore
35202-5352357-1
GHULAM RASOOL
4,296,752
1,656,341
5,953,093
859,351
1,656,341
2,515,692
3
Sheikh Muhammad Arshad
26 D Shadman Colony Faislabad
33100-5482564-9
HAJI GHULAM HUSSAIN
9,252,421
3,703,346
12,955,767
2,252,421
3,703,346
5,955,767
4
Shakoor Ahmed
41 F Shah Rukn E Alam Colony Multan
330-51-055236
CH. NASIR UDDIN
5,588,619
3,161,525
8,750,144
2,088,619
3,161,525
5,250,144
5
Hafsa Ghous & Or Ghous Muhamad
768 Ravi Block Allama Iqbal Town Lahore P O
Box 54570
35202-2393659-6
GHOUS MUHAMAD
1,376,960
389,321
1,766,281
137,696
389,321
527,017
6
Muhammad Iftikhar Rasool
112217 H Sanghar Wihara Inside Pak Gate
Multan
36302-0476647-3
FAIZ RASOOL
2,299,899
960,183
3,260,082
344,899
960,183
1,305,082
7
Rana Liaqat Ali
98 S Masoom Shah Roadnew Multan
322-50-099156
RANA REHMAT ALI
(LATE)
4,491,837
1,875,874
6,367,711
891,837
1,875,874
2,767,711
8
Pervaiz Ahmed
H No 291 A Block 4 K A E C H S Karachi
42201-7300421-3
MUHAMMAD UMER
KHAN
7,400,000
3,211,293
10,611,293
2,590,000
3,211,293
5,801,293
9
Muhammad Farooq Azam
9/1 C Peoples Colony No 1 Faislabad
33100-3537494-7
ABDUL HAMEED
3,091,557
827,343
3,918,900
587,396
827,343
1,414,738
10
Hafeez-Ur-Rehman Babar
Ummar Rd Link Muslim Rd Gujaranwala
34101-9487815-7
MUHAMMAD SHAFI
2,459,364
568,656
3,028,020
368,905
568,656
937,561
11
Waseem Ul Haq
M 1 Cantt View Housing Scheme Badian
Road Lahore
35201-4495870-9
AZIZ UL HAQ
800,815
575,612
1,376,427
-
575,612
575,612
12
Zulfiqar Ali
Raifal Rd Super Town Dha Cantt Lahore
35201-5353720-9
HAJI ALLAH DITTA
1,643,299
685,813
2,329,113
312,227
685,813
998,041
13
Pervez Pyar Ali & Or Malik Pyar Ali
222/2 Al Karim Town House Manaeckji St
Garden East
42201-6420647-3
PYAR ALI MANJI
1,555,639
460,265
2,015,904
255,639
460,265
715,904
14
Muhammad Sarwar
House No 740 Mohallah Koriarpur Rawalpindi
37405-1754319-7
SARDAR MUHAMMAD
1,720,913
693,036
2,413,949
258,913
693,036
951,949
15
Muhammad Ramzan &/Or Shakeel Ahmed
House No 856 St No 20 G-10/1 Isl
61101-3207983-7
MUHAMMAD YAAR
(LATE)
948,260
741,513
1,689,773
-
741,513
741,513
16
Muhammad Musharaf
B 320/3 Faiza Avenue 11 C/1 North Karachi
42101-9192087-1
MUHAMMAD ARIF
(LATE)
1,769,263
344,275
2,113,538
219,263
344,275
563,538
17
Tahir Fazil
21 C Muslim Town Lahore
35202-8918855-3
BILAL TAHIR
16,779,545
13,866,080
30,645,625
6,711,822
13,866,080
20,577,902
18
Jutt Weaving Factory
P.390/10 St#08 Ayub Colony
439-93-180000
MUHAMMAD RAMZAN
946,877
359,847
1,306,724
189,377
359,847
549,224
19
Anwar Ullah Alvi
1445 B Peoples Colony No 1 Near Pilot Ground
Faislabad
33100-7614336-7
JAFAR ULLAH ALVI
1,862,270
928,414
2,790,684
655,270
928,414
1,583,684
20
Mussawir Hussain Bakhtiari
House No 40 A 1 St 16 Officers Colony Cavelery
Ground
35201-9371577-9
MASOOD HUSSAIN
BAKHTIARI
24,656,459
10,281,880
34,938,339
7,656,459
10,281,880
17,938,339
21
Muhammad Rizwan Ali
House # Nw/455,Saidpur Scheme Rawalpindi
37405-1750946-7
SHEIKH MOHAMMAD
TARIQ
2,860,999
667,246
3,528,244
94,999
667,246
762,244
22
Abdul Waheed Rawat
House No 746 St No 3 I -9/1 Ial
61101-3927767-5
ABDUL MAJEED
2,253,724
818,290
3,072,014
315,724
818,290
1,134,014
23
Tawakal Haider
House No 223 St No 5 Cavelery Ground Lahore
35201-5924093-7
IJAZ ALI (LATE)
3,109,839
1,273,012
4,382,852
359,839
1,273,012
1,632,852
24
Tariq Aziz Hussain
247 D Peoples Colony No 1 Near Khazra
Mosque Faislabad
33100-2941568-9
MUHAMMAD HUSSAIN
2,334,960
806,131
3,141,091
466,992
806,131
1,273,123
25
Marium Aftab
Flat No 5 H No 112 B Main Gulberg Road Lahore
35202-2419157-8
AFTAB AHMED SHEIKH
(LATE)
5,958,923
2,484,857
8,443,779
1,758,923
2,484,857
4,243,779
26
Muhammad Sohail
H No 73 St No 17 A Lane 3 Chaklala 3
Rawalpindi
37405-9017740-7
MUHAMMAD SHARIF
7,979,268
3,341,664
11,320,932
1,959,268
3,341,664
5,300,932
Syed Israr Hussain Shah
101 C Punjab Corporalince Housing Society
Lahore Cant
35201-4032477-7
SYED MUHAMMAD
ISHAQ SHAH
973,633
406,838
1,380,471
194,726
406,838
601,564
Malik Shafqat Hayat
House No 252/3 St No 34 Z Block Dha Lahore
35201-1326487-9
MALIK MUHAMMAD
HUSSAIN
8,843,200
4,648,940
13,492,140
5,575,200
4,648,940
10,224,140
29
Muhammad Javaid Iqbal
House No 3 W Z Madina Town Faislabad
33100-3149056-3
MUHAMMAD TUFAIL
5,155,498
2,169,831
7,325,329
955,498
2,169,831
3,125,329
30
Malik Imran Talib
Thokar Niaz Baig Bahir Wala Havali Lahore
35200-1453620-5
MALIK ISRAR HUSSAIN
12,985,274
5,150,436
18,135,710
6,985,274
5,150,436
12,135,710
31
Tariq Javed Weaving Factory
House #P66 St#3 Afghana Bad#1 Dhakhana
Gulberg
33100-0964965-1
MUHAMMAD ASLAM
SAJID
1,240,138
496,140
1,736,278
186,021
496,140
682,161
32
Amjad Niaz Abbasi
House No 981 Zeeshan Colony Cobbe Line
Rawalpindi
37405-9916774-7
RAJA NIAZ AHMAD
10,100,000
4,204,819
14,304,819
3,938,700
4,204,819
8,143,519
33
Faisal Murad
Flat No 4701 1St Floor Defence Garden Phase
1 Dha
42301-1225942-1
SHUJAAT ULLAH KHAN
1,793,562
747,827
2,541,388
492,962
747,827
1,240,788
34
Jameel Uddin
H No A 27 Blue No 3 Gulshan E Iqbal Karachi
42101-1707727-3
MOHAMMAD ANWAR
9,413,343
3,929,583
13,342,926
2,823,943
3,929,583
6,753,526
35
Ghulam Haider
H#220-F Mohallah Shah Rukh-E-Alam
36302-5488123-9
ALI MUHAMMAD
1,936,294
549,924
2,486,218
366,294
549,924
916,218
36
Muhammad Maqbool Abbassi
House No 334 St No 25 Sector I 10/4 Islamabad
61101-1833405-5
WALI DAAD KHAN
ABBASI
2,309,306
964,109
3,273,416
309,306
964,109
1,273,416
37
Malik Zari Corporation
Jaranwala Road, Mandi Faizabad, Sheikhupura
35402-2457966-1
KHUSHI MOHAMMAD
5,077,152
613,076
5,690,228
77,152
613,076
690,228
38
M/S Muslim Khad Merchant
Ghala Mandi Bhalwalpur
38401-0338250-9
MUHAMMAD AKRAM
SHAH
18,359,837
6,971,249
25,331,085
7,343,935
6,971,249
14,315,183
39
Saleem Ahmed
C 1 Ground Floor Sea Breez Super Star
Appartments
42301-3315174-9
KHAWAJA NAZEER
AHMED
7,995,317
3,334,098
11,329,414
2,095,317
3,334,098
5,429,414
40
Ikram Zari Corporation
Ghalla Mandi, Main Bazar, Farooqabad, Distt.
Sheikhupura
35404-0903137-5
MUHAMMAD AMIN
4,199,211
1,573,499
5,772,711
1,499,211
1,573,499
3,072,711
41
Sheikh Muhammad Saeed
House No 249 B Gulgasht Colony Multan
36302-0399617-9
SHEIKH FAZAL UR
REHMAN
5,799,357
2,376,367
8,175,724
2,184,357
2,376,367
4,560,724
42
Afzaal & Company
Ghalla Mandi,Pattoki.Distt.Kasur.
35103-1369521-3
GHULAM ALI
18,297,956
6,343,205
24,641,160
11,647,956
6,343,205
17,991,160
43
Mohammad Nadeem
4 F 11/14 Nazimabad Near Nadra Office Karachi
42101-1615920-3
HAJI ABDUL RASHEED
5,830,201
2,420,835
8,251,036
1,430,201
2,418,335
3,848,536
44
Rana Mazhar Iqbal
P 307 Street No 11 Taj Colony Islamia College
Faislabad
33100-9897671-7
RANA MUHAMMAD
IQBAL
2,500,000
1,030,428
3,530,428
450,000
1,030,428
1,480,428
45
Bhutta Spray Center
Ghala Mandi Bazar Pakpattan
36402-5044305-7
SARDAR MUHAMMAD
1,634,453
347,417
1,981,869
334,453
347,417
681,869
46
Samina Tabbasum
Plot No 620 Jblock G G Phase Vi Dha Lahore
35202-7495307-3
SHAHZAD SARWAR
BUTT
2,396,877
992,370
3,389,248
479,367
992,370
1,471,738
47
Tariq Islam
H No 430 F Shah Rukn E Alam Colony Mlt
36302-8516312-7
CHAUDHARY MUHAMMAD ISLAM
3,764,045
1,354,091
5,118,136
924,045
1,354,091
2,278,136
Financial statements and notes
27
28
162 Standard Chartered Annual Report 2013
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year
Khawaja House Khawaja Street Sunny Bayers
Saddiqui
36302-0468420-3
MEHMOOD HASSAN
KHAWAJA
1,380,162
596,783
1,976,945
Principle
Interest/
Markup
Amount Written off / Concession
Total
Principle
450,162
Interest/
Markup
Total
Balance
(Gross)
48
Javed Mehmood Khawaja
596,783
1,046,945
49
Raja Mehboob Hussain
H No 1165 St No 108 Sector 1-10/9 Islamabad
61101-7841117-1
RAJA SHAH WALI
9,571,194
1,436,992
11,008,186
50
Anas Mustafa
E / 65 Block F North Nazimabad Karachi
42101-8565282-5
HASSAN ABBAS
1,191,916
988,235
2,180,152
449,000
1,436,992
1,885,992
303,366
988,185
51
Mohammad Amin Mugal
House No 385 St No 5 Allama Iqbal Town
Mehmoodabad
42301-0800937-9
ALLAH DITTA MUGHAL
3,455,327
1,597,092
5,052,419
1,291,552
1,298,407
1,597,092
2,895,499
52
Bilal Ahmed
Moh Neel Kot Near Masjid Anwar E Madina
Post Offic
36303-5984959-9
AHMED BUKHSH
1,288,540
512,484
1,801,024
188,540
512,484
701,024
53
Shahzad Imran Fabrics
P-84, Wakilian Wali Gali,St#4 Kachery Bazar
33100-6281151-9
MUHAMMAD IQBAL
14,484,945
5,443,170
19,928,115
3,184,945
5,443,170
8,628,115
54
Shahid Riaz Butt
Nasif Lodge Al Haram St Muradiya Road
Model Town S
34603-2350734-7
MUHAMMAD RIAZ
WASIF
2,398,628
1,002,033
3,400,661
719,008
1,002,033
1,721,041
55
Farooq Ali Hashmi
47 D Zarar Shaheed Rod Al Faisal Town Lahore
35201-2632344-1
MOHAMMAD SIDDIQUE
HASHMI
4,479,833
1,867,055
6,346,888
1,478,345
1,867,055
3,345,400
56
Bismillah Fertilizer
Defence Road Kahna Kacha, Station
Chowk,Distt.Lahore
35202-2869318-5
MUHAMMAD SHARIF
1,693,374
434,376
2,127,750
338,674
434,376
773,050
57
Bashir And Sons Weaving Factory
Chak # 188/ R.B Chak Jhumra Nalay Wala
33101-1710785-1
NAZAR ALI KHAN
2,951,271
1,111,391
4,062,662
451,271
1,111,391
1,562,662
58
Fayyaz Ahmed Khan Khakwani &Or Muha
Opp. Madarsa Minhaj Ul Quran, Khanewal
Road, Stree
36302-6662204-1
SHAHNAWAZ KHAN
KHAKWANI
4,799,220
2,836,341
7,635,561
959,220
2,836,341
3,795,561
59
Shahid Traders
301-B, Gulistan Colony Near Ideal Bakers
Faisalabad
33101-9673855-1
SHOUKAT MEHMOOD
CHATHA
1,867,055
696,906
2,563,960
499,955
696,906
1,196,860
60
Sharif Brothers
Near Shell Pump Multan Road Mailsi Distt Vehari
36602-5392867-1
AHMED YAR
4,361,806
2,037,500
6,399,305
961,806
2,037,500
2,999,305
61
Tahir Nizam
House No 281/A Street 13 Chaklala Scheme
Iii Rawalpindi
37405-1459714-7
NIZAMUDDIN
2,700,000
1,168,415
3,868,415
600,000
1,168,415
1,768,415
62
National Zarri Services
National Zarri Services Railway Road Hasilpur
31203-3234558-7
ALLAH DITTA
6,998,323
3,354,081
10,352,404
1,889,547
3,354,081
5,243,628
63
Rizwan Ali
331-A Model Town Gujranwala
34101-2377821-9
MUHAMMAD AKRAM
CHOHAN
6,330,354
2,655,436
8,985,790
1,830,354
2,655,436
4,485,790
64
Raja Habib Ur Rehman
House No.86-A Margalla Road Sector F-6/2
Islamamab
61101-2988707-7
RAJA ABDUL REHMAN
17,951,213
6,056,902
24,008,114
-
6,056,902
6,056,902
65
Muhammad Saleem Butt
H # 13,Motia Gali ,Tajbagh Lahore Cantt.
35201-1568171-7
MUHAMMAD ASLAM
BUTT
5,212,448
2,176,956
7,389,404
1,012,448
2,176,956
3,189,404
66
Fayyaz Hashmat
House No.84 Block C Phase 1 Shah Rukn-EAlam Post
36302-0413985-1
HASHMAT ALI
1,934,711
812,405
2,747,116
434,711
812,405
1,247,116
67
Ishfaq Spray Centre
Ishfaq Spray Centre Quaid-I-Azam Road
Kehror Pacca
36202-5571792-3
SYED AKBAR SHAH
972,239
364,863
1,337,102
272,239
364,863
637,102
68
Muhammad Waheed
H # P-777/389, Bazar # 3 ,St #17 ,Razabad
,Faisal
33100-7758835-1
MUHAMMAD SAEED
2,000,000
832,102
2,832,102
360,000
832,102
1,192,102
69
Raja Liaqat Ali Khan
D-472 Satellite Town Rawalpindi
37405-9023251-3
NAMAT KHAN
12,781,905
8,335,308
21,117,213
2,781,905
8,335,308
11,117,213
70
Malik Azam Mahmood (Mf)
304 Sabzazar Schem Multan Road Lahore
35202-2534191-9
MALIK AHMED DIN
1,994,661
361,397
2,356,058
159,573
361,397
520,970
71
Ch. Iftikhar Traders
Ch.Iftikhar Traders Seet Pur Road Ali Pur Distt.
Muzzafar Garh
32301-4823138-1
YAQOOB ALI
3,333,196
1,252,101
4,585,297
973,196
1,252,101
2,225,297
72
Zafar Iqbal Farrukh
House # 61 ,Sector Cc ,Dha Lahore .
35201-9801764-5
CH. ALI MOHAMMAD
CHEEMA
8,347,983
1,256,746
9,604,728
200,000
1,256,746
1,456,746
73
Naya Sawera
Naya Sewera Mailsy Road Adda Ameer Station
Kehror Pacca.
36202-0927407-5
ALLAH BACHAYA
1,787,375
718,562
2,505,938
267,375
718,562
985,938
74
Qartaba Agro Services
Qartaba Agro Services, Railway Road Shujabad
36304-4348143-1
MUHAMMAD HANIF
2,194,990
1,408,004
3,602,993
658,845
1,408,004
2,066,849
75
Kissan Traders
Ghalla Mandi Kot Samaba Tehsil & Distt. Rahim
Yar Khan
31303-7841533-5
CHAUDHRY MUHAMMAD RAFIQ
6,298,895
2,357,857
8,656,752
2,456,568
2,357,857
4,814,425
76
Naseem Iqbal
P-10/233 ,Street # 8 ,Liaqatabad # 2 ,Faislabad.
33100-9030875-5
KHUDA BUKHSH
793,829
606,534
1,400,363
223,829
606,534
830,363
77
Mirza Jalil Akhtar Jilo
House# 180/A, Street # 4, Officer Colony,
Cavalary
35201-9597755-3
MIRZA SHER ZAMAN
9,950,586
3,792,149
13,742,736
1,990,117
3,792,149
5,782,267
78
Mohammad Badrut Tauhid
Dh-91 Block-L North Nazimabadkarachi
42401-2074777-7
MUHAMMAD SHAMSHUT TAUHID
1,356,228
414,420
1,770,648
256,228
414,420
670,648
79
Muhammad Ikram-Ul-Haq
House No. 307, Block - M - Dha, Lahore.
35202-9513390-7
WALI MUHAMMAD
5,297,509
1,677,786
6,975,295
477,509
1,677,786
2,155,295
80
Ghulam Ali Asghar
House No.210, Street 7 Madni Larex Colony,
Shalima
35201-1375819-5
IQBAL HUSSAIN ALVI
1,781,556
743,915
2,525,471
445,356
743,915
1,189,271
81
Mehmood Zafar Rao
H#114 G 3 Johar Town Lahore
35202-1885050-7
RAO ABDUL SHAKOOR
KHAN
5,365,983
3,311,642
8,677,625
1,023,197
3,311,642
4,334,839
82
M/S Ali Traders
Chak Hota The & Distt Pakpattan Sharif
36402-0824396-7
MUHAMMAD NAWAZ
2,792,976
967,995
3,760,971
837,892
967,995
1,805,887
83
Yousaf Traders
52/A Grain Market Mailsi
36602-2760150-3
HAJI MUHAMMAD
YOUSAF
2,489,809
954,694
3,444,503
489,809
954,694
1,444,503
84
Malik Liaqat Niaz Enterprises
825-42-43 Hafiz Jamal Road Mohallah
Dawood Jehania
36302-2367532-9
HAJI KHUSHI MUHAMMAD
3,429,257
1,280,078
4,709,335
480,096
1,280,078
1,760,174
85
Abdul Ghafoor &Or Muhammad Sarwar
House No. A-60, Officers Colony No. 1, Madina
Town
33100-0828851-5
CHAUDHARY KHUSHI
MUHAMMAD
2,840,370
1,185,175
4,025,545
397,652
1,185,175
1,582,827
86
Rana Muhammad Sadiq
H # 49 ,St # 3 ,Allama Iqbal Town ,Gujranwalla .
34101-9435281-3
ROSHAN DIN
4,988,538
2,054,327
7,042,866
748,278
2,054,327
2,802,606
87
Chaudhry Muhammad Javed
Chatta Street Near Roras Road Chowk
Defence Road Sialkot
34603-4645290-9
CHAUDHARY BARKAT
ALI
2,798,829
1,167,003
3,965,832
698,829
1,167,003
1,865,832
88
Sheikh Muhammad Shahbaz
325-G.T Road S.A Rahman Stop Daroghawala
Lahore
35201-5966005-1
MUHAMMAD MUNIR
1,995,669
832,144
2,827,813
385,669
832,144
1,217,813
89
Muhammad Shahid Chudhary
Ward#6 Kacha Road Farooq Abbad Khana
Lahore
35201-9194079-3
NAZAR MUHAMMAD
19,936,589
3,987,324
23,923,913
-
3,987,324
3,987,324
90
Malik Muhammad Asif
Flat No-121 Plot No-Fl-10 Marine Drive Block-2
Clifton
42301-5148359-3
MALIK MUHAMMAD
USMAN
2,748,519
1,476,084
4,224,603
961,982
1,476,084
2,438,066
91
Qaiser Abbas Bukhari
39 D Gulberg 2 Lahore
35202-1382478-7
GHULAM ABBAS
BUKHARI
5,999,982
3,291,984
9,291,965
105,000
3,291,984
3,396,983
92
Muhammad Farooq Butt
House # 303-A Iqbal Avenue Housing Society,
Johar
35202-7233844-3
MUHAMMAD SALEEM
BUTT
3,590,938
1,499,340
5,090,278
718,188
1,499,340
2,217,528
93
Bhatti Agro Traders
Bhatti Agro Traders Bangala Moree Jalal Pur
Road Shujabad
36304-6300497-9
GHULAM HUSSAIN
1,211,935
452,993
1,664,928
211,935
452,993
664,928
163
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
House No. 896 - B Peoples Colony No. 1
Faisalabad
33100-6720469-9
Outstanding Libilities at Beginning of Year
Amount Written off / Concession
Principle
Interest/
Markup
Total
Principle
MAHMOOD UL HASSAN
9,534,238
2,068,833
11,603,071
953,423
Interest/
Markup
Total
Balance
(Gross)
2,068,833
3,022,256
Amar Mahmood
95
Syed Habib Ur Rehman
278 - Eden Canal Villas, Lahore.
35202-0317712-9
SYED AZIZ UR REHMAN
3,589,847
1,175,950
4,765,797
179,493
1,175,950
1,355,443
96
Imran Shaheen
House No. 14 - A/7 Ilim Din Street Komboh
Colony Chowk Ichra Lahore
35202-7025824-3
MALIK SHAHEEN ASIF
1,676,112
690,856
2,366,969
250,112
690,856
940,969
97
Muhammad Shabbir Nadeem
House No. 20 Street No. 3 Chowk Qazzafi Behind Family Hospital Hussain Bl.Multan. Multan
36302-6147199-7
MUHAMMAD DIN
2,809,551
1,171,544
3,981,095
809,551
1,171,544
1,981,095
98
Sheikh Abdul Quddus
H. No. 57, Street # 39, Sector F-10/4, Islamabad
61101-2111008-1
SHEIKH ABDUL RAUF
19,787,931
3,815,359
23,603,290
-
3,815,359
3,815,359
99
Ellahi Fertilizer
59-Grain Market Rahim Yar Khan
31303-3296803-3
ABDUL GHAFOOR
1,489,685
555,844
2,045,529
371,685
555,844
927,529
100
Shaukat Ali
H 1974 B /1 Indus Road 1 Tariq Abad Lalkurti
Rawalpindi
37405-3737773-9
Mushtaq Ahmed
2,437,382
699,792
3,137,175
357,382
699,792
1,057,175
101
Muhammad Ejaz
173-B Gulberg Faislabad
33100-0611340-7
MOVLI MUHAMMAD
1,796,192
688,675
2,484,867
269,429
688,675
958,104
102
Iftikhar Hussain
Famous Photo Stat Circular Road Kachehry
Bazar Faisalabad
33102-1818485-1
MUHAMMAD ALI
2,478,090
1,037,569
3,515,659
493,090
1,037,569
1,530,659
103
Buland Iqbal
House # 76,Street# 24 Sector F-10/1 Islamabad
61101-1971018-3
BADAR UD DIN
9,996,839
4,005,594
14,002,433
2,646,839
4,005,594
6,652,433
104
Khawaja Zafar Iqbal
House No 431/1 Mohallah Nasirabad St No 15
37405-0252799-7
KHAWAJA FAZAL ALAHI
1,074,757
365,444
1,440,201
174,757
365,444
540,201
105
Asharf Unnisah
House # A-14, Bloclk-B North Nazimabad
42000-0464198-2
KHALIF ULLAH
4,195,250
262,810
4,458,060
1,194,750
262,810
1,457,560
106
Muhammad Buland Iqbal Khan
Flat # 1 & 2 Plot C-3-C, Khayaban-E- Sehar
Phase Vii D.H.A
42101-5538260-7
WAHID ALI KHAN
4,175,848
1,803,821
5,979,669
1,175,848
1,803,821
2,979,669
107
Mumtaz Jehan Begum
House# 63 Street A Dha 26Th Street Dha
Phase 5 Karachi
42301-1560676-0
GHANI DAD KHAN
29,389,269
6,269,547
35,658,816
-
6,269,547
6,269,547
108
Faisal Sajjad
B-88, Block 7, Kda Scheme 36 Gulistan-EJouhar
42101-4597055-1
SYED SAJJAD HUSSAIN
4,859,476
2,941,626
7,801,102
2,559,476
2,941,626
5,501,102
109
Nadeem Lerasab
House # 149, Street # 6 Askari-10, Rawalpindi
37405-0210597-7
NADEEM LERASAB
4,186,465
871,302
5,057,766
-
871,302
871,302
110
Mohammad Yasin
House # 759, Street # 71 I-8/3
37405-0476976-3
NOOR MOHAMMAD
1,269,479
3,196,889
4,466,369
-
3,196,889
3,196,889
111
Muhammad Nisar Abbasi
House # 534, Street # 69, I-8/3 Islamabad
61101-1781239-5
HAJI MUHAMMAD GUL
KHAN
5,195,413
1,963,376
7,158,789
779,413
1,963,376
2,742,789
112
Anwar Haleem Khan
H#C-51 Block-L Norht Nazim Abad Karachi
42000-8400411-9
ABDUL HALEEM KHAN
14,908,570
6,129,073
21,037,643
3,708,570
6,129,073
9,837,643
113
Muhammad Almas Abbasi
House # 47,St # 26 Sector F-10/1
37405-7261074-5
MUHAMMAD ASLAM
14,877,496
5,049,942
19,927,438
-
5,049,942
5,049,942
114
Ghulam Nabi
8-Mohkam Park Hanjerwal Multan Road Lahore
35202-7642359-7
AMEER ALI
2,187,334
821,201
3,008,535
328,100
821,201
1,149,301
115
Abdul Rehman
Shop No -56/N Commercial Center Gulistan
Colony No -2 Faisalabad
33100-4425974-9
GHULAM SARWAR
2,999,345
1,251,458
4,250,804
949,345
1,251,458
2,200,804
116
Muhammad Hanif
H No.15/177 Mohallah Chrigah Pura Church
Road Sialkot
34603-7046521-9
MUHAMMAD SHARIF
5,636,206
2,344,177
7,980,383
1,636,206
2,344,177
3,980,383
117
Rafaqat Ali
H No.12 50-A Lawrence Road Lahore
35202-2473294-9
KARAMAT ALI
6,678,625
2,228,641
8,907,266
3,339,310
2,228,641
5,567,951
118
Muhammad Javaid
House# 4/19 M Block Gulberg Iii Lahore Lahore
35202-7216284-9
ABDUL MAJEED
1,234,218
491,548
1,725,766
234,502
491,548
726,050
119
Mubashar Tanveer
Gali # 3 Mohallah Ahmed Pura Gujranwala
34101-8177708-1
ZAHOOR UL DIN
1,807,309
605,681
2,412,990
271,096
605,681
876,777
120
Malik Muhammad Anjum
House # 24-C, Sector # 4-B, Khayaban-E-Sir
Syed,
37405-2694082-3
JAMAL MALIK
1,875,532
785,416
2,660,948
625,532
785,416
1,410,948
121
Muhammad Tasnim
House No.133-S Block Model Town Extension
Lahore
35202-2203189-9
HAJI GHULAM NABI
3,191,934
1,354,521
4,546,455
957,581
1,354,521
2,312,102
122
Ghulam Mohi Ud Din Qadri
159-G, Dha, Lahore
35201-1303137-5
GHULAM HUSSAIN
QADRI
9,996,263
3,650,668
13,646,930
1,999,253
3,650,668
5,649,920
123
Abdul Majeed Weaving Factory
Behind Shama Cinema, Shama Street, Shama
Colony, Shaheen Abad, G.T Road, Gujranwala
34101-2670005-9
ABDUL MAJEED
11,027,051
4,290,196
15,317,247
3,308,051
4,290,196
7,598,247
124
Razi Ud Din
H # 156-C, Jamil Abad Cantt Multan
36302-0405224-3
NASIR UD DIN SHAMS
8,587,787
3,083,377
11,671,164
1,717,787
3,083,377
4,801,164
125
Tariq & Brothers
Main Road, Ubaro Dist Ghotki Ghotki
45105-0156214-7
UMERUDDIN ARAIN
1,098,983
378,398
1,477,381
328,983
378,398
707,381
126
Al Haseeb Fabrics
H # 479/1 A, Street # 4 Ansar Colony Block
C Multan
36302-0365181-5
INAYAT MUHAMMAD
ANSARI
2,096,274
910,836
3,007,110
461,274
910,836
1,372,110
127
Javed Masood
H No-06 St 12 Allama Iqbal Road Garhi Shahu
Muhammad Nagar
35202-2272530-1
SHEIKH MUNIR HUSSAIN
340,191
10,032
350,224
416,254
136,588
552,842
128
Mohammad Hanif
Flat# A-7/31 3Rd Floor Rabia City Block 18
42201-8108498-5
ABDUL SATTAR
495,545
129,228
624,773
495,545
165,838
661,384
129
Muhammad Azam
Engineering Manager M\S Eco Pack Ltd.
Plot,112 Phase 5 Industrial, State Hattar District
Hari Pur. Haripur
35202-2709453-9
Abdul Hameed
1,127,275
71,326
1,198,600
1,086,686
195,879
1,282,564
130
Mohd Iqbal Faruqie
Techno Worldwide Impex 1St Flr Naqi Market
Sh-E-Quaid-E-Azam Lahore Lahore
35202-2954108-1
Muhammad Usman
Faruqie
707,817
6,894
714,711
775,896
92,182
868,078
131
Mr Afzaal Ahmad
House# 857-St-71 Bazaz Mohalla Sadar Bazar
Lahore Cantt Near Taj Mehal Hotal
35201-8355945-7
HAJI FAZAL AHMAD
477,407
39,305
516,712
286,402
250,802
537,204
132
Mr Syed Shahab Uddin
Tp 11 6Th Flr Blk C Mall Square Appt Dha Phase
5 Near Zamzama Park
54400-0440427-3
SYED ABDUL HAI
499,447
170,825
670,272
499,447
170,825
670,272
133
M Zahoor Motiwala
House No-403-B Adamjee Nagar Off Ameer
Khusro/Johar Road Opp Muhammadi Bakery
Karachi Karachi
42201-4634614-1
Muhammad Amin
Motiwala
509,851
96,006
605,858
509,851
113,596
623,447
134
Zia Ur Rehman
S-154/1,Phase Ii, Defence Housing Authority,
Lahore Cantt
35201-1326403-1
Abdul Rehman Sheikh
484,729
30,592
515,321
484,729
129,733
614,462
135
Asmat Ullah Tunio
Appt.# 7Iqbal Heaven184/Fp.E.C.H.S
Block-2Karachi 603 Park Avenuebldg P E C H S
Block 6Shahrah E Faisal
42201-9889075-3
ABDULLAH
463,832
57,262
521,094
465,862
85,318
551,180
136
Waseem Uraizee
13 Block 3Jinnah Coop Housing Societyshaheed E Mil 13/3 Jinnah Coop Housing Society
shaheed E Millat Road
42201-1222046-1
SAEED UDDIN URAIZEE
489,813
78,880
568,693
468,874
89,296
558,170
137
Sohail Ahmed
10-B South Park Streetsunset Boulevardphase
Ii D H Silever House Babri Bldgi I Chundrigar
Road karachi
42301-4963992-5
SALAHUDDIN AHMED
474,384
12,140
486,524
501,054
81,406
582,461
138
Laiq Ahmed
32/1 27Th Streetoff Khy Mujahid Phase V
Extd H Aka D 18S I T E Industrialestate Supper
Highway karachi
42101-7970968-1
MOHAMMAD SHAFI
609,581
37,283
646,864
611,611
112,055
723,666
139
Nadeem Safar
199-1-Dblock 2 P E C H Skarachi 111 L Block 2P
E C H Skarachi
42201-3656606-1
SAFAR ALI
784,610
109,735
894,345
772,659
128,464
901,123
Financial statements and notes
94
164 Standard Chartered Annual Report 2013
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year
Principle
Interest/
Markup
Total
Amount Written off / Concession
Principle
Interest/
Markup
Total
Balance
(Gross)
140
Junaid Ahmed
266 Wl.C.C.H.Slahore Canttlahore 124/4Industrial Areakotlakhpat Lahore
35201-6587367-9
IJAZ AHMAD
645,778
16,630
662,408
661,016
55,164
716,180
141
Muhammad Iqbal
24 Malik Taj Deenstreet Islampuralahore 1St
Floor Naqi Market75 Shahrah E Quaid E Azam
Lahore
35202-2954108-1
Muhammad Usman
Faruqie
747,742
17,943
765,685
982,844
161,500
1,144,344
142
Muhammad Ali Qureshi
6-U Block No 2P.E.C.H.Ssr Model Schoolkarachi Stadium Road karachi
42201-3658673-9
IFTIKHAR ALI QURESHI
513,353
41,841
555,194
522,021
87,345
609,367
143
Muhammad Ali Kapadia
E 2 4 Maymar Lake View Khekshan Cilfton
Karachi
42000-6907172-1
Peer bahi de Kapadia
972,098
54,104
1,026,202
957,294
132,293
1,089,588
144
Syed Irfan Bokhary
76 Block H Model Town Lahore
35202-1723600-7
SYED WAJEEH DIN
BUKHARI
461,113
11,857
472,970
476,887
79,106
555,992
145
Salahuddin Ahmed
10/B South Park Streetmain Sunset Boulevardphase V Silver Reed Housenear Police H/
Oi.I.Chunrigar Road
42301-8009574-5
ABDUL RASHEED
999,303
24,922
1,024,225
999,225
163,410
1,162,635
146
Shahid Munir
154-1 B2Town Shiplahore Shop 2Khan Market
44Nishtar Road lahore
42301-1051907-9
KHAWA MUNEER
AKHTAR
719,269
88,985
808,255
665,329
128,239
793,568
147
Raja Pervez Akhtar
H No 0-854Feroz Puraopposite Naz Cinemamurree Road Office No M 1890General
Hospitalchaklala Road Rawalpindi
37405-6908412-3
SHAUKAT ALI RAJA
491,851
12,395
504,247
491,851
80,783
572,634
148
Shahabzada Saeed Ahmed
G-21/8Almani Town Housesblock-8 Cliftonkarachi 179/2A.M.21 Saddar karachi
42301-1070938-9
SAHABZADA M SHARIF
543,984
12,206
556,190
579,971
92,362
672,333
149
Syed Fazakkir Hussain
House No A 45/C5Th East Streetdefence
Housing Soci 1St Floor , Kamran House34-A/2
Lalazar Driveopposi
42301-8520895-3
SYED TAFZAL HUSSAIN
430,548
47,466
478,014
432,578
70,528
503,106
150
Muhammad Kamran Shahzad
25/E Block 2P E C H Skarachi D-14 Block J
North Nazimabad karachi
42101-8747661-1
MOHAMMAD TAFI
435,970
10,800
446,769
439,299
71,760
511,059
151
Imtiaz Hussain Shah
58- Sikander Blockallama Iqbal Townlahore
19-A Al Miraj Arcadechowk Choubarji Lahore
35202-2198207-5
MANZOOR HUSSAIN
324,530
-
324,530
500,673
72,293
572,966
152
Nasir Mehmood Rathore
H # 26-A/Hmadni Mohallahjhelum Qureshi
Plazarailway Roadg.T.S Chowk Jhelum
37301-2337204-5
MOHAMMAD IBRAHIM
RATHORE
484,824
13,345
498,169
461,004
75,897
536,901
153
Basharat Ahmed Tanveer
H # 115St # 1Askari 9Airport Road,Chaklalarawalpin Head Office 68Tipu Road Rawalpindi
37405-2408065-5
Deen Muhammad
499,830
13,490
513,319
492,507
68,632
561,139
154
Sarmad Ejaz Gundra
H No.6/7 Gundra Housepeer Sehra Roadsialkot
Hico Buildingkashmir Road Sialkot
34603-4178846-3
HAJI IJAZ HUSSAIN
490,520
-
490,520
500,099
54,996
555,095
155
Sheikh Irfan Munir
H No.272-D Peoples Colony No.1Faisalabad
P-10/14 Sootar Mandimontgomery Bazar
Faisalabad
33100-9045706-1
LATE SHEIKH MOHAMMAD MUNIR
492,420
-
492,420
490,592
81,755
572,348
156
Imran Jaffery
H No.46-B Block-A-Ijohar Townlahore 11-L
Johar Town Lahore
35200-4768906-7
NAWAZISH ALI JAFRI
489,217
76,326
565,543
491,247
91,750
582,996
157
Shahzad Ahmed
H No.21/361 Mohalla Raja Bazarsialkot Commissioner Road Sialkot
34603-6581332-9
CHAUDHARY MUHAMMAD YOUNAS
498,256
15,205
513,460
492,455
69,060
561,515
158
Jam Saif Ali Khan
H No 351, 19Th Street,Khayaban E Mujaheedphase V, 3-A,Double Carriage Way Main
Korangi Road
44201-4458771-3
Nawab Jam Anwer Ali
478,203
24,858
503,061
438,590
73,858
512,447
159
Zeeshan Qazi
H No 145/N Block No 2P.E.C.H.S Sncc-9, Bl No
7/8Johar Road Machs
42201-4711152-3
HASSAM QAZI DIN
450,845
86,905
537,750
436,681
85,167
521,847
160
Muhammad Saleem Anjam
115 A, Govt Employs Colonymda Chowk 2,
Shadmanhigh Court
36302-7137001-3
MUHAMMAD SIDDIQUE
486,425
66,803
553,228
486,425
80,436
566,861
161
Syed Najam Ul Hassan Rizwi
Ffc Lahore Trade Centre 11 Shahrah Aiwan-E-Tijarat Lahore China Chowk Lahore
35202-5140698-3
ANWAR HUSSAIN RIZWI
491,222
13,458
504,680
501,978
81,774
583,752
162
Rana Muhammad Mohsin Sarwar
Saffan Traders Room No 7 1St Floor 105 Mangal
Mansion Asia Hotel Lakshmi Chowk Lahore
36302-5156339-7
RANA MUHAMAMDA
SARWAR
499,984
84,518
584,503
499,984
84,518
584,503
163
Afzal Saeed Khan
Ist Floor B-64/E Prechs Blk - 13-B Gulshan E
Iqbal Near Al Mustafa Hospt Karachi
42101-4066188-9
RAHIM SHAIR KHAN
976,807
177,430
1,154,237
976,807
177,430
1,154,237
164
Muhammad Abdullah
Broadway Travels 28/A Ground Floor Empire
Center 1-Abbot Road Near Lakshami Chowk
Lahore
35201-1363667-7
MUHAMMAD ANWAR
478,190
-
478,190
472,017
82,051
554,068
165
Ijaz Ahmad Awan
122-D - 7 Model Town Lahore
35202-8346686-1
ALI AHMED AWAN
525,891
36,595
562,486
525,891
115,085
640,976
166
Mohammad Adil Khan
F-74/A,S.I.T.E., P.O.Box 3647 Karachi 2578651
42401-4229617-9
Muhammad Fazal Khan
472,016
89,938
561,954
472,016
104,060
576,076
167
Muhammad A Kapadia
E-2-4 Memar Lake View Appt Kehkashan
Clifton Blk 5 Karachi Karachi
42000-6907172-1
Peer bahi de Kapadia
504,515
20,759
525,274
547,048
68,956
616,004
168
Ahsan Aftab
97/4 Z Block Dha Lahore
35201-1594232-7
SHEIKH AFTAB HAMEED
415,502
15,270
430,772
429,302
75,963
505,265
169
Zaheer Maqbool
Mcb Call Centre 1St Flr,Sst Bld Beaumont Rd
Karachi Karachi
35202-3594273-5
MAQBOOL UR REHMAN
421,080
-
421,080
390,720
116,147
506,867
170
Hanif Akbar Marwat
22-B/2 Main National Highway Phase 2 Dha
Karachi
42301-1049078-3
GHULAM AKBAR
252,209
-
252,209
499,174
141,178
640,352
171
Mian Amir Nisar
Hamza Agencies C-6 3Rd Fl, Ocean Centre
Opp Custom, House Karachi, Karachi
42301-5455535-1
Nisar Ahmed Punnoo
261,380
-
261,380
722,448
167,990
890,438
172
Rana Mohsin Rasheed
Al Rehman Bulding Muree Road Rawalpindi
37405-4777904-7
RANA RASHEED
AHMAD
464,846
52,872
517,718
464,846
79,589
544,435
173
Syed Zeeshan Ahmad
House No 633 J Blk Phase 6 Dha Lahore
35202-7565501-7
MATLOOB AHMAD
493,775
52,902
546,677
493,775
66,597
560,372
174
Sarwar Ali Shams
H 3/3 Sector 5 Korangi Industrial Area Brooks
Chowrangi Karachi
31202-7949167-5
MUHAMMAD SHAMS
UDDIN
503,266
13,840
517,106
482,504
77,237
559,742
175
Rehana Begum
Fl B-9 Sehar Appartment Gulshan E Iqbal Maskan Chorangi Bhayni Heights Block 4
45504-5637294-4
SYED GHULAM
HUSSAIN
870,563
31,101
901,664
870,563
74,744
945,307
176
Sheeba Afghani
H No 90 St No Main Margala Road F-8/2 F-8
Markaz Isb
61101-5472844-8
ABDUL LATIF AFGHANI
667,105
56,830
723,935
667,105
114,877
781,981
177
Raheel Ahmad-Alias-Mithoo
H No 63/2 St No 3 Saroba Garden 17 Km
Ferozpur Rd Lahore
35102-5648695-7
ABDUL SATTAR
590,800
26,742
617,542
590,800
42,402
633,202
178
Shahrukh
72-B Industrial Area Kot Lakh Pat Peco Chowk
Lahore
35201-0460390-3
SHEIKH MUHAMMAD
EHSAN
592,347
52,729
645,077
592,347
83,637
675,984
179
Ali Faisal
Pta Zonal Office, Wireless Compound , Opp
Jpmc Karachi
42101-1771671-5
MUHAMMAD IBRAHIM
859,296
-
859,296
850,860
117,446
968,305
165
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year
Principle
Interest/
Markup
Amount Written off / Concession
Total
Principle
Interest/
Markup
Total
Balance
(Gross)
180
Irfan Ali
A - 7 The Plaza 16 - A Block No 6 Pechs Main
Shah-E-Faisal Pso Pump Karachi
38405-2269087-1
REHMAT ALI
599,579
11,224
610,803
599,579
81,611
681,190
181
Muhammad Zia Ur Rehman
A-102 Block-13-A Railway Employees
Cooperative Housing Society Gulshan E Iqbal
Educational World School
41304-2316040-9
ALAUDIN JAVED
480,124
10,828
490,952
452,919
58,101
511,020
182
Syed Zakir Raza Jafri
Ppl Pidc House
42501-1558499-7
SYED QAMAR RAZA
JAFRI
1,560,556
19,052
1,579,608
1,441,545
82,166
1,523,710
183
Hina Hamid
House No 1994,Muhalla Sector 11-E Muslim
Town, New Karachi,Karachi
42101-1718433-6
HAMID HUSSAIN
595,455
28,658
624,113
595,455
62,185
657,640
184
Ansa Shahid
Building 5 St 22 Imam Ghazali Road
Makhanpura
35202-3932398-4
SHAKEEL AHMED
689,879
-
689,879
673,696
101,959
775,655
185
Atta Abbas
H No R-547/9 Dastagir Society Askari Ground
F.B Area
42101-1622239-5
SYED KALEEM HAIDER
496,212
3,344
499,556
475,856
62,046
537,902
186
Ghulam Mustafa
H No E-907 St 1 Waqas Market Nadrabad Bedian Road Lahore Cantt Jinnah Public School
35302-1915687-7
NOOR MUHAMMAD
440,989
-
440,989
440,194
66,182
506,376
187
Khalid Hussain Bhutto
H No B - 18 Salhal Gdyh Pcsir Lab Pcsir Lab
Suparco Road Gulshan Town
43204-8508600-1
SIKANDAR ALI
496,212
10,663
506,875
481,926
55,295
537,221
188
Abdul Ghaffar
House No 123 Mohallah Roshan Park Chungi
Multan Road Lahore
35202-2647388-3
ABDUL SATTAR
899,085
118,436
1,017,520
899,085
118,436
1,017,520
189
Syed Mustafa Hussain Rizvi
Flat No A1/3 2Nd Floor Gallant Court Flat No 5
Main University Ibn-E-Seena Hospital Complex
Road Block 11 Gulshan-E-Iqbal
45203-8169737-7
SYED ALI AHMED SHAH
RIZVI
550,000
67,443
617,443
550,000
67,443
617,443
190
Mian Hussain Barkat
176/185 H Block Model Town Lahore Lahore
35202-2667810-9
Main Barkar Ali
600,507
9,590
610,097
622,731
159
622,890
191
Basharat A. Tanveer
Basharat Ahmad Tanveer ? Sd-115, Askari 9
Chaklala Rawalpindi Rawalpindi
37405-2408065-5
Deen Muhammad
497,008
-
497,008
508,018
170,372
678,390
192
Khawaja Ali Hamza
Kai International Pvt Ltd 35-C Empress Road
Lahore Lahore
35202-4053949-5
Khawaja MuhammadArshad
473,420
15,520
488,940
471,844
156,225
628,069
193
Jam Saif Ali
Jam House 35 19Th Street Khayaban E Mujahid
Phase V, D H A Karachi Karachi
44201-4458771-3
Nawab Jam Anwer Ali
488,124
37,024
525,147
488,124
73,152
561,275
194
M Shahzad Siddiqui
H No 74 St No 2 New Haseeb Shaheed Colony
Near Al Aziz Masque Faisalabad Faisalabad
33100-1027739-1
M FAROOQ SADIQUEI
497,728
-
497,728
498,491
154,453
652,944
195
Syed Rafi Hasan Abidi
G-15 6Th Street Phase Vi D.H.A Karachi.
502-69-245692
SYD HASAN WAZIR ABIDI
3,508,412
626,497
4,134,908
499,909
620,559
1,120,468
196
Shams-Ul-Arfeen
Venus Distributors (Pvt)Ltd 9/1, K-28, Hawksbay
Road Paf Maripur Karachi
42101-0709680-1
Syed Safdar Ali
1,403,960
544,086
1,948,046
333,788
431,169
764,957
197
Zahid Hameed
Mustafa Arcade-Plot-No 119-A P-1 5Th Floor
Smchs Society Karachi
517-55-080202
KS ABDUL HAMEED
1,038,578
578,978
1,617,556
253,578
526,723
780,301
198
Abid Tanveer
H.No. B-1, 735, Street No, 2, Muslim Town,
Rawalpindi.
37405-0563650-5
Maktoob Ahmed
908,852
447,727
1,356,579
68,852
447,727
516,579
199
Muhammad Sajid Khan Sumbal
9-N, Model Town Extention Lahore.
35202-1080530-9
M IQBAL KHAN SUNBUL
1,815,392
668,937
2,484,329
215,392
522,469
737,861
200
Syed Tahir Ali
H.No. 750-Z, D.H.A., Lahore
35201-1587760-3
S AZHAR ALI
11,376,442
4,401,175
15,777,616
3,776,442
3,784,831
7,561,273
201
Sheikh Mohammad Irfan
154-A Miraj Street Habib Ullah Road Lahore.
35202-6507212-1
M SHARIF
2,652,288
1,340,714
3,993,002
789,603
1,210,482
2,000,085
202
Rizwana Amin
House No 11-A, 2Nd Sunset Street Phase-2,
Dha, Karachi Dha Karachi
42301-7595696-2
MAKDOOM M AMIN
FAHIM
23,374,549
12,092,689
35,467,238
-
10,690,174
10,690,174
Rizwana Amin
House 11-A 2Nd Sunset Street Phase-2 D.H.A.
Karachi. Dha Karachi
42301-7595696-2
MAKHDOOM AMIN
FAHIM
29,262,914
24,687,240
53,950,153
-
22,590,959
22,590,959
Muhammad Nadeem
H P-1247 Block-40 Bismillahpur Samanabad
Faisalabad Samanabad Faisalabad
33100-3152825-3
Muhammad Shariff
772,990
449,315
1,222,305
147,990
406,046
554,036
205
Maqbool Hussain
H.No.3 Luchmen Street Lake Road Lahore
Samanabad
35401-7043968-9
MOHAMMAD ALI
5,178,968
4,054,787
9,233,756
776,968
3,742,269
4,519,237
206
Naeem Ahmed Qureshi
H.No B 301 Block L North Nazimabad Karachi
Near Medi Care Hospital
42101-6414518-9
Abdul Majeed Qureshi
1,810,554
555,931
2,366,485
410,554
555,931
966,485
207
Wajid Ali Shah
H.No 86 Allama Iqbal Road Lahore Street
Chah Baba Shaid Shah Gari Shaw Lahore.
Ghari Shahu
35202-8185788-3
MUZAFFAR ALI SHAH
963,368
469,255
1,432,623
192,368
419,462
611,830
208
Sh.Maqsood Ahmed
50/2 Main Kh.E Muslim Phase Vi Near Misri
Shah Mazar D.H.A Karachi. Dha Karachi
42000-0429968-3
SH GULZAR AHMED
5,648,085
916,407
6,564,492
1,018,085
665,965
1,684,050
209
M.Shahbaz
38/12 Ishra Road Usman Bazar Ishra Lahore
35202-2730416-3
SIRAJUDDIN
5,639,000
4,163,663
9,802,663
1,639,000
3,814,475
5,453,475
210
Raja Muhammad Farraukh Nazir
H.No 409 Block Y D.H.A Lahore
35201-8925994-7
RAJA MUHAMMAD
NAZIR
1,420,324
567,970
1,988,294
355,081
785,473
1,140,554
211
Nasir Mehmood
Flat D-305, 3Rd Floor Beach Blessing Clifton
Block-2 Karachi
42301-2051756-9
GHULAM RASOOL
9,251,414
3,337,964
12,589,378
2,296,414
3,222,303
5,518,716
212
Muhammad Arshad
H.N E/149-B, Street 6 Yasrab Colony, Lahore.
Walton Road
35201-1346208-5
Not found In Nadra sys
1,545,232
1,051,404
2,596,637
164,000
968,085
1,132,085
213
Mohammad Shahid Qureshi
House A/35, Block-13/D-2, Gulshan-E-Iqbal,
Karachi
42201-2473350-1
M MAQSOOD QURESHI
17,238,478
6,536,753
23,775,231
4,738,478
5,569,645
10,308,123
214
Aun Gain
16-Habib Manzil , Nawab Bahadur Yar Jang
Road , Soilder Bazar # 2 , Dha Karachi
42301-7334695-7
TAHIR ALI GAIN
1,610,400
887,311
2,497,712
320,400
756,830
1,077,231
215
Muhammad Yaqoob Mirza
200-A Gulzar-E-Quaid Air Port Link Road
Chaklala Airport Employees Cooperative
Housing Scheme
37103-7247965-3
KARAM DAD MIRZA
9,676,816
4,738,387
14,415,203
1,676,816
4,220,354
5,897,170
216
Mansoor Wahid
House # 91/2 Saba Avenue Phase 5,Ext Dha
Dha Karachi
42301-6437339-9
ABDUL WAHID
10,842,539
5,343,804
16,186,343
2,710,539
4,686,940
7,397,479
217
Abdul Majeed
Flat No.G-202, 2Nd Floor Haroon Royal City,
Phz-1-B/17 Gulistan-E-Johar Gulistan -E- Johar
42501-4727739-9
ABDUL HAKEEM
2,217,933
1,754,961
3,972,894
443,933
1,591,819
2,035,752
218
Amjad Pervaiz
House No-111, Sector # B-3, Saeedabad,
Nazimabad
42401-4315321-3
MUHAMMAD LATIF
2,323,148
1,805,904
4,129,053
463,148
1,682,142
2,145,291
219
Abbul Hassan
Plot# Jm 135 Rose Garden 2Nd Floor Flat#205
Burgari Road Soldier Bazar No 2 Karachi
Jamshed Quarters
42201-7617626-5
SULTAN AL
5,242,808
3,303,159
8,545,967
996,808
2,929,075
3,925,883
220
Syed Ather Raza
House # 1402, Block-8, Federal B Area,
Gulshan -E- Iqbal
42101-6258462-9
SYED MOHSIN RAZA
1,142,483
401,972
1,544,455
227,953
334,118
562,070
Financial statements and notes
203
204
166 Standard Chartered Annual Report 2013
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
Name
Address
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Outstanding Libilities at Beginning of Year
Principle
Interest/
Markup
Amount Written off / Concession
Total
Principle
Interest/
Markup
Total
Balance
(Gross)
221
Adnan Ghayyur Khan
Flat No F1, Park View Appartment Block 10
Gulshan-E-Iqbal Safari Park
42401-9570919-5
ABDUL GHAYYUR KHAN
1,292,821
642,192
1,935,013
322,821
584,115
906,936
222
Nasir Hussain
House D-18 K.D.A Overseas Appartment
Gulshan E Iqbal Gulshan -E- Iqbal
42201-0543612-7
GAZANFAR ALI
1,430,872
979,813
2,410,685
230,872
915,424
1,146,296
223
Umer Hayat
H # 113/A, Block # A, Unit # 4, Latifabad,
Latifabad
41304-8473208-9
MUBARAK HUSSAIN
14,941,502
5,938,437
20,879,939
2,241,502
5,266,069
7,507,571
224
Muhammad Kashif Memon
House # B-260, Adamjee Nagar, Off Tipu Sultan
Road K.M.C.H.S.L
41302-9544346-7
ABDUL GHANI MEMON
6,385,086
756,752
7,141,838
-
800,827
800,827
225
Muhammad Yaqoob
B-1002, 10Th Floor Mehran Square Frere Town
Clifton Frere Town
42301-1022570-1
ABDUL SATTAR
4,562,300
2,068,298
6,630,598
922,300
2,037,046
2,959,346
226
Zafar Husain
Nat Industry, Near Pso Petrol Pump, Kalsa Gt
Road, Gujrat Gulshan Colony
34201-7531375-1
MOHAMMED KHAN
4,545,261
1,452,633
5,997,894
909,052
1,964,238
2,873,291
227
Omar Saboor
H # 20, Askari Villas Army Housing Scheme-2,
Phase-V, Dha, Gulistan -E- Johar
42301-5345790-9
ABDUL SABOOR
CHOUDHRY
6,555,260
2,289,392
8,844,652
1,305,260
1,924,886
3,230,146
228
Meraj Ul Islam
H # 426, St # 21, Gaze Nigar Gulshan -E- Iqbal
42301-9885122-3
SIRAJ UL ISLAM
11,847,373
11,055,971
22,903,344
2,847,373
10,381,454
13,228,827
229
Atif Zubair
Kda Scheme # 1 House# St-1/B Kda Scheme 1
42201-2743166-5
ZUBAIR ASLAM
19,561,980
18,685,106
38,247,086
4,261,980
17,313,050
21,575,030
230
Muhammad Shamoon
House# E-29/F-4 Allama Iqbal Street# 2 Shaheen Colony Revenue Record Lahore
35201-0359678-9
MUHAMMAD YOUSAF
1,959,039
778,936
2,737,975
391,807
685,882
1,077,689
231
Mumtaz Ali
Flat# B-7 Gulshan Plaza Block# 13-B GulshanE-Iqbal Scheme 33
42201-0776542-5
GHULAM ALI
964,949
575,756
1,540,705
192,949
517,762
710,711
232
Khalid Mehmood
House # B-28 Gulshan -E-Iqbal Block 04 Near
Discovery Store Karachi Gulshan -E- Iqbal
42000-8180846-5
M. ISHAQ
7,212,525
2,807,378
10,019,902
1,081,875
2,707,217
3,789,092
233
Saima Parveen
Appt No F/1 12Th East Street Phase 1 Near Over
Head Tank Dali Staff Appt Defence Karachi
42501-9432770-4
MUHAMMAD BASHIR
1,939,919
801,905
2,741,824
384,919
695,207
1,080,126
234
Muhammad Ahsan Ashraf
House # 87, Acn, Sector 1, I-9/1
37405-0218393-1
CH MUHAMMAD
ASHRAF HUSSAIN
6,418,946
3,338,134
9,757,080
2,018,946
2,680,264
4,699,210
235
Arshad Kamal
Flat # 210, Kamran Plaza, Block -3, Gulshan-EIqbal. Gulshan -E- Iqbal
42201-3568979-5
AFSAR HUSSAIN
SIDDIQUI
1,610,343
487,293
2,097,635
261,223
395,067
656,290
236
Muhammad Anees Abrahani
Flat # K-101,Haroon Royal City Block 17 Gulistan
E Jouhar Gulistan -E- Johar
42201-4493750-5
MUHAMMAD YOUNUS
ABRAHANI
7,549,698
3,117,230
10,666,928
1,749,698
2,613,161
4,362,859
237
Jan Muhammad Jakhrani
A-304 Block 7 Sulistan-E-Jouhar Near Saphora
Goth Gulistan -E- Johar
43104-8234370-9
BINGO KHAN JAKHRANI
4,498,673
1,986,856
6,485,529
841,978
1,722,303
2,564,280
238
Express Services
Off.No.I, 1St Floor, Ghous Plaza, Murree Road,
Rawalpindi
33302-3282351-3
MR. CH. FAQIR MUHAMMAD
2,842,151
2,156,535
4,998,687
426,151
1,995,901
2,422,052
239
Sadiq Hussain Jafri
Flat No 202 Plot No 38/C 10Th Badar Commercial Street Dha V Ext Karachi
42301-6612200-1
ASHIQ HUSSAIN
HUSSAINI
616,710
14,956
631,666
616,710
71,179
687,888
240
Mubashir Ahmed
House No. 24, Lane 1, Cavalry Ground, Lahore
Mubashir Ahmed,
Proprietor
35201-1797775-7
M Badaruddin
87,652,500
6,774,150
94,426,650
56,252,500
6,774,150
63,026,650
241
Intergrain Commodities (Pvt.) Ltd
308, Al-Falah Building, The Mall, Lahore
Mian Moeen-ud-Din,
Managing Director.
1,800,000
-
1,800,000
1,800,000
-
1,800,000
128,024,052
59,237,672
187,261,724
102,424,052
59,357,399
161,781,451
97,951,524
38,278,600
136,230,125
78,351,524
38,278,600
116,630,125
7,724,248
2,022,060
9,746,308
7,724,248
2,022,060
9,746,308
2,145,832
-
2,145,832
2,145,832
-
2,145,832
81,832,818
109,992,518
191,825,336
50,159,215
109,992,518
160,151,733
5,463,209
7,679,819
13,143,028
-
7,679,819
7,679,819
Nadeem Moin Mian,
Director.
242
243
Atlas Cables (Pvt.) Limited
Atlas Rubber & Plastic Ind. (Pvt.) Ltd
9Th Floor, Textile Plaza, Mumtaz Hasan Road,
Karachi
9Th Floor, Textile Plaza, Mumtaz Hasan Road,
Karachi
Adeel Javaid,
Managing Director,
42201-3385330-5
Sh. Arshad Javaid
Danish Javaid,
Director
42201-0255323-7
Sh. Arshad Javaid
Arshad Javaid,
Director
42201-0255322-9
Sh. Nazir Hussain
Adeel Javaid, Managing Director
42201-3385330-5
Sh. Arshad Javaid
Danish Javaid,
Director
42201-0255323-7
Sh. Arshad Javaid
Arshad Javaid,
Director
42201-0255322-9
Sh. Nazir Hussain
Aizaz Sarfaraz
244
A & A Services.
402, Al-Farid Centre, M. T. Khan Road, Karachi
Adnan A. Sarfaraz,
42201-0180958-5
245
Refrigerator Manufacturing Co Pakistan Ltd
D-98, S.I.T.E., Karachi
Aftab Ahmed Khan,
Managing Director
246
Al-Malik Carpets
29-A, Off Davis Road, Lahore
Mr. Viqar ahmed
Malik.
9-14000-299002-1
S/o. Bilal Ahmed Malik
Mrs. Saira Viqar Malik
271-86-240318
S/o. Nazir-Ul-Haq Sheikh
W/o. Viqar Ahmed
W/o. Haroon Nazir
Mr. Haroon Nazir
Mrs Zohra Nazir
247
Creative Textile
29-A, Off Davis Road, Lahore
Mr. Viqar ahmed
Malik.
9-14000-299002-1
S/o. Bilal Ahmed Malik
Mrs. Saira Viqar Malik
271-86-240318
S/o. Nazir-Ul-Haq Sheikh
W/o. Viqar Ahmed
W/o. Haroon Nazir
Mr. Haroon Nazir
Mrs Zohra Nazir
167
Consolidated Statement of Financial Position
Annexure-1
Amount in PKR
Sr.
No.
248
Name
Ammar Textile
Address
18 Km, Multan Road, Lahore
Name of Partners /
Directors NIC / CNIC
Father / Husband Name
Kh. Bilal Ahmad
352022-969902-7
S/o. Kh. Ghulam
Mohiuddin
Mrs. Samina Bilal
Ahmad
35200-1448248-4
W/o. Kh. Bilal Ahmad
Outstanding Libilities at Beginning of Year
Amount Written off / Concession
Principle
Interest/
Markup
Total
Principle
Interest/
Markup
Total
Balance
(Gross)
96,193,837
119,412,765
215,606,601
63,669,637
119,412,765
183,082,402
249
Bilal Textile
Old Address:P-834, Bilal Plaza, Liaqat Road,
Faisalabad
New Address:
102, Jail Road, Faisalabad
Mian Muhammad
Salem Omer
33100-0902344-5
Mian Muhammad Omer
11,693,637
6,588,398
18,282,036
5,693,637
6,588,398
12,282,036
250
Khan Laboratory & Diagnostic Centre,Dr.
A 57, Malir City, Shahrah-E-Faisal, Karachi.
SHAKEEL AHMED
KHAN
42201-9642358-1
MUHAMMAD AHMED
KHAN
1,751,843
238,957
1,990,800
437,213
238,957
676,170
251
Classic Denim Mill
Plot # 14, Sector 20, Korangi Industrial Arae,
Karachi.
VESHDEV RAKHANI
42301-7832646-3
NENUMAL
12,251,567
3,409,057
15,660,624
2,750,583
3,578,157
6,328,740
SHEHZAD HAROON
42301-1065237-5
HAROON
MUHAMMAD
SALEEM AHMED
42000-4730399-9
MUHAMMAD
EBRAHIM AHMED
9,499,299
2,773,267
12,272,566
3,700,473
3,325,717
7,026,190
1,513,129,347
762,498,489
2,275,627,836
610,946,878
754,391,157
1,365,338,035
ABDUL SATTAR
MUHAMMAD
YASEEN
42301-3651991-3
252
Ali Asghar Textile Mills Ltd.
306 - 308, Uni Tower, I.I. Chundrigar Road,
Karachi.
NADEEM ELLAHI
SHAIKH
42301-0993217-3
HUMAYUN ELLAHI
SHAIKH
GULNAR HUMAYUN
42301-0899905-0
W/O HUMAYUN ELLAHI
SHAIKH
NAVEED ELLAHI
SHAIKH
42000-0532641-3
HUMAYUN ELLAHI
SHAIKH
MARIUM HUMAYUN
42000-0485329-0
D/O HUMAYUN ELLAHI
SHAIKH
SULTAN MAHMOOD
42201-2232626-7
M.YAQOOB
SALMAN MASOOD
42301-0851960-1
MASOOD-UL-HASSAN
ABDUL AZIZ
42301-0868432-1
HABIB
Financial statements and notes
168 Standard Chartered Annual Report 2013
PATTERN OF SHAREHOLDERS
As on 31 December 2013
NO. OF
SHAREHOLDERS
1
101
501
1001
5001
10001
15001
20001
25001
30001
35001
40001
45001
50001
55001
60001
65001
70001
75001
95001
100001
105001
120001
125001
130001
140001
145001
170001
175001
180001
185001
195001
210001
235001
245001
255001
265001
285001
295001
310001
330001
380001
405001
455001
495001
520001
525001
710001
850001
910001
1075001
2165001
2690001
3832335001
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
to
TO
100
500
1000
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
55000
60000
65000
70000
75000
80000
100000
105000
110000
125000
130000
135000
145000
150000
175000
180000
185000
190000
200000
215000
240000
250000
260000
270000
290000
300000
315000
335000
385000
410000
460000
500000
525000
530000
715000
855000
915000
1080000
2170000
2695000
3832340000
TOTAL
SHARES HELD
48,349
630,716
948,537
6,557,139
5,405,639
1,550,944
1,201,777
853,210
715,784
651,351
450,779
255,194
388,953
310,111
523,433
183,119
477,219
75,000
75,817
898,900
203,163
107,900
242,144
511,000
134,400
142,700
145,258
175,000
176,500
185,000
188,000
200,000
212,000
238,900
747,232
258,132
265,739
287,100
300,000
313,795
331,000
381,100
406,041
917,614
500,000
525,000
530,000
712,500
854,000
914,570
1,078,600
2,166,500
2,693,000
3,832,339,162
3,871,585,021
Financial statements and notes
1199
2004
1193
2568
868
126
69
37
25
20
12
6
8
6
9
3
7
1
1
9
2
1
2
4
1
1
1
1
1
1
1
1
1
1
3
1
1
1
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
8213
FROM
SHAREHOLDING’S SLAB
FROM
TO
169
CATEGORY WISE LIST OF SHAREHOLDERS
As at December 31, 2013
Category of Shareholders
Shareholders
Sharesheld
Percentage
Directors and their spouse(s) and minor children
Christos Papadopoulos
1
1
0.00
Mohsin Ali Nathani
2
530,001
0.01
Raheel Ahmed
1
1
0.00
Andrew Philip Bainbridge
1
1
0.00
Najmul Islam Chaudhri
1
1
0.00
Sultan Mohammad Parvez Ghias
1
1
0.00
Spenta Kandawalla
1
1
0.00
Standard Chartered Bank (UK)
1
3,832,339,162
98.99
Executives
-
-
-
Public Sector Companies and Corporations
National Bank of Pakistan
National Development Finance Corporations.
National Bank of Pakistan Investor A/C Former NDFC
Saudi Pak Industrial & Agricultural
Saudi Pak Industrial & Agricultural Investment Co. Ltd. PMD
M/s. Investment Corporation of Pakistan
1
1
1
1
1
1
16,742
4,177
32,877
30,905
854,000
3,250
0.00
0.00
0.00
0.00
0.00
0.00
Banks, development finance institutions, non-banking finance
companies, insurance companies, takaful, modarabas and
pension funds
15
2,835,537
0.07
Associated Companies, undertakings and related parties
Mutual Funds
Safeway Mutual Fund Limited
1
620
0.00
CDC - Trustee Akd Index Tracker Fund
1
45,598
0.00
8069
29,549,994
0.76
6
18,054
0.00
General Public
a. Local
b. Foreign
Foreign Companies
13
742,422
0.02
Others
93
4,581,676
0.12
8213
3,871,585,021
100.00
Totals
Share holders holding 5% or more
Standard Chartered Bank (UK)
Shares Held
Percentage
3,832,339,162
98.99
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Company Secretary
Standard Chartered Bank (Pakistan) LIimited
P.O.Box No. 5556,
I.I.Chundrigar Road,
Karachi 74000, Pakistan
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Form of Proxy
8TH ANNUAL GENERAL MEETING
STANDARD CHARTERED BANK (PAKISTAN) LIMITED
I/We…………………………………………………………………………...…………………………….
of…………………………..…………………………being member(s) of Standard Chartered Bank
(Pakistan) Limited holding………………….Ordinary shares hereby appoint
……………………………………………………………………………of..……………………or failing
him/her…..………………………………..of…………………...……………who is/are also member(s)
of Standard Chartered Bank (Pakistan) Limited as my/our Proxy in my/our absence to attend
and vote for me/us and on my/our behalf at the Annual General Meeting of the Bank to be held
on March 28, 2014 and/or any adjournment thereof.
Signed this _________________day of _______________________ 2014.
Folio No.
Signature
on Rs. 5/Revenue Stamp
WITNESSES:
1. Signature:
Name:
Address:
CNIC No.
Passport No.
2. Signature:
Name:
Address:
CNIC No.
Passport No.
Note:
1.
The Proxy Form should be deposited at the registered office of the Bank, as soon as possible but not
later than 48 hours before the time of holding the meeting, failing which, Proxy Form will not be treated
as valid.
2.
No person shall act as proxy unless he/she is a member of the Bank.
150 year celebrations
2013 marked Standard Chartered's 150th anniversary In Pakistan. The Bank, which started as the
Chartered Bank opened its first office in Karachi in March 1863
Standard
Chartered
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