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The Progress of Takaful Companies (2011)
Compiled by EY-IFSG
Overview of Takaful market
In the recent years, Takaful has made its place in
Pakistani market at a rapid pace. This is
supported by the rules and regulations issued by
SECP (Securities and Exchange Commission of
Pakistan) over the years. Takaful Companies filed
a petition through which the Sindh High Court
(SHC) restrained SECP from implementing the
Takaful Rules,2012 issued. Takaful companies
are of the view that the new rules had been issued
by the SECP without considering the opinions of
religious scholars who would have advised the
regulator that the new rules were not in line withthe Islamic principles.
Currently the market has 5 players, two family
Takaful and three general Takaful companies.
Overall profitability growth of Takaful
Companies during 2011
In 2011, various Takaful companies in Pakistan
ISLAMIC FINANCE INDUSTRY NEWSLETTER
ISLAMIC FINANCE PAKISTAN
VOLUME 3 ISSUE 8 AUGUST 2012
Ayat of the Month
O you who believe, when the
call for Salah (prayer) is
proclaimed on Friday, hasten
for the remembrance of Allah,
and leave off business. That is
much better for you, if you
but know. Then once the Salah
is over, disperse in the land,
and seek the grace of Allah,
and remember Allah
abundantly, so that you may
be successful. [Surah Al-
Jumua:9,10]
Inside this issue
I n t h e r e c e n t years, Takaful
h a s m a d e i t s
place in Pakistani
market at a rapid
p a c e . T h i s i s
supported by the
r u l e s a n d
regulations issued
by SECP over they e a r s . S H C
restrained SECP
f r o m
implementing the
T a k a f u l R u l e s
2 0 1 2 , i s s u e d .
Inside Story 1
Editors Message 2
Local andInternational NewsGet a glimpse of
what is happening in
the world of Islamic
finance
6
In the SpotlightFind our read of the
month
9
Ask USBy Mufti Ibrahim Essa
and Mufti Javed
10
Pakistan IslamicBanking IndustryAnalysis
11
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Editorial
Page 2 An initiative of IFP forum
Advisory Board
Mufti Irshad Ahmed Aijaz
Mufti Najeeb Khan
Anwar Ahmed Meenai
Mohammad Aslam
Mujeeb Baig
Syed Shahjahan Salahuddin
Faizan Memon
NusratUllah Khan
Muhammad Shahzad
Hussain
Arshad Hussain Zubairi
Ammar Khalid
Rima Farooq
Sukuk is an Islamic financial certificate, similar to a bond in Western
finance, that complies with Shariah. In its simplest form Sukuk are asset-
backed trust certificate evidencing ownership of an asset or its usufruct. As
the traditional Western interest paying bond structure is not permissible, the
issuer of a Sukuk sells an investor group the certificate, who then rents it
back to the issuer for a predetermined rental fee. The issuer also makes a
contractual promise to buy back the bonds at a future date at par value. As
Sukuk securities adhere to Islamic laws sometimes referred to as Shariah
principles, it prohibits the charging or payment of interest as to conventional
bonds.
Modern Islamic finance is a recent phenomenon. Only 30 years have passed
since the first fully fledged Islamic financial institution (IFI) emerged, and
the market for Sukuk (Islamic bonds) was non-existent up until the
beginning of this century. The emergence of Sukuk has been one of the most
significant developments in Islamic capital markets in recent years. Simply
put, Sukuk instruments links their issuers, with a wide pool of investors,
many of whom are seeking to diversify their holdings beyond traditional asset
classes, thereby acting as a bridge for linking issuers with a pool of investors.
Sukuk issuance has proven its resilience during the recent periods of global
capital markets financial crisis. According to Moodys report on Islamic
Banks and Sukuk, growth rates are at least twice as high as those recorded on
global conventional financial markets.
Nevertheless, liquidity in the Sukuk market is expected to improve gradually
as the variety of Sukuk issuances widens. Not only the volumes are expected
to exceed by the end of the current decade as seen by the industry experts,
but the nature, geographic location and credit quality of future issuers are
also expected to considerably diversify.
Happy Reading!
Let us know, if you know friends or colleagues who, in your view, may benefit from this newsletter. Send us their email
addresses at newsletter.ifp@gmail.com
Editor-in-Chief
Associate Editors
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have performed well in terms of
profitability. This could be judged by
the financial results of the Takaful
leaders in Pakistan.
Pak Qatar General Takaful Limited
(PQGTL) posted its loss before tax into
profit in the year 2011. In the year
2010, it recorded the loss of PKR 28
million where as in 2011 it registered a
profit of PKR 8 million. It was mainly
due to the favorable movement in
gross contributions by 52% in 2011,
supported by the reasonable growth in
the different segments of the business
especially by motor (which represents
71% of contribution) and fire (whichrepresents 13% of total contribution)
segment. Moreover, the reduction in
various expenses, for instance,
management fee by 7% and general
and administration expenses by 9%
also contributed to the increase to
some extent.
Pak Qatar Family Takaful Limited
(PQFTL) reduced its loss from PKR 72
million to PKR 9 million. It was due to
rise in contribution income(annualized) of different segments such
as individual family by 78%, group
family by 113% and group health by
61%. Moreover, the rise in net
investment income by 89% and the
reduction in the expenses such as
expenses not attributable to statutory
fund moved down by 28% also
contributed to the reduction in the
loss.
Dawood Family Takaful Limited
(DFTL) loss further heightened by
38%. The primary reason behind the
fluctuation was the significant rise in
the commission expenses by 35% and
the management expenses by 14%.
Moreover, the fall in investment
income by 24% also moved the loss
figure up.
Pak-Kuwait Takaful Company
Limiteds (PKTCL), profit moved down
by 27% which was primarily due to the
rise in net commission by 106% and
the reduction in the net investment
income by 21%.
In the case of Takaful Pakistan Limited
(TPL), it also posted the loss of PKR 35
million into the profit of PKR 3million, it represents the significant
movement around 91%. It was mainly
due to the significant reduction in the
direct expenses by 68 % and the
Page 3
Continued The Progress of Takaful Companies (2011)
An initiative of IFP forum
Takaful Companies
profitability graph have
moved up in the recentyears.
83%
153%
41%
128%
55%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Average Gross Contribution (2011)
PQGTL
PQFTL
DFTL
PKT
TPL
12 13
65
9
26
0%
10%
20%
30%
40%
50%
60%
70%
Expense Ratio (2011)
PQGTL
PQFTL
DFTL
PKT
TP
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increase in other income by 29%.
Moreover, the reduction in
management fee by 53% also
contributed to the profitability.
Analysis of Total Assets
Overall, there was rise in the total assets
of the Takaful companies in Pakistan
and which was due to an improvedconfidence in the Takaful business.
In 2011, PQGTL total assets moved up
by 18% compared to the previous year.
The increase was due to the expansion
of the business in the motor segment,
in addition, the rise in the contribution
due by 85% and the increase in the
capital work in progress by 15% also
contributed to the upward movement
of the total assets.
In case of PQFTL total assets moved up
by 92%, which is significant movement
in the total assets. The upward
movement was mainly due to the
increase in cash and bank deposits by
132% and the rise in total investment
by 122%.
DFTL total assets moved in positive
direction by 7%. It was supported by
the increase in the cash and bank
deposits by 50% and the rise in the
contributions by 41%. In addition,
investment in listed Shariah compliant
shares of PKR 4.9 million also added
value to the total assets of DFTL.
The total assets of PKTCL alsoincreased in positive direction by 12%
which was due to the significant rise in
the prepayment of deferred
commission expense by 53% and
contribution due by 48%. Moreover,
the rise in investments and current
account deposits also supported the
increase in the total assets of the
company.
TPLs, total assets increased by 5 %
during the year, which was because of
the rise in cash and bank deposits by
3% and the upward movement in
investments by 18%. Moreover, the rise
in other current assets by 13% also
contributed to the increase in total
assets of the company.
Overall, Takaful Companies
performance was outstanding in the
year 2011 and it seems that the trend
will continue in the future as well.
Page 4
Continued The Progress of Takaful Companies (2011)
An initiative of IFP forum
Takaful Companies
Performance was
outstanding in the year
2011.
37%
14%
63
20%22%
0%
10%
20%
30%
40%
50%
60%
70%
Management Expense Ratio (2011)
PQGTL
PQFTL
DFTL
PKT
TPL
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Page 5
Continued The Progress of Takaful Companies (2011)
An initiative of IFP forum
Financial summary of the Takaful Companies for the year 2011
Statement of Financial Position Figure in Rupees
Sr.
No Description PQGTL PQFTL DFTL PKTCL TPL
1. Total assets 443,621,775 2,072,039,407 873,603,996 681,036,614 488,902,019
2. Cash and other equivalents 690,949 1,738,015 129,820,728 126,513 110,882
3. Investments 131,274,372 902,195,231 333,157,472 56,870,735 57,771,415
4.
Deposits maturing within 12
months 64,723,500 490,880,000 115,000,000 231,142,100 206,690,000
5. Cede money 500,000 500,000 100,000 500,000 -
6. Creditors and accruals 54,867,057 237,358,334 116,055,062 152,825,078 174,366,245
7. Total equity and liabilities 443,621,775 2,072,039,407 873,603,996 681,036,614 488,902,019
8.
Amount due to co-takaful /
retakaful operators 33,146,839 3,882,776 10,169,953 67,863,830 54,054,267
Statement of Comprehensive Income
9. Profit / (loss) before taxation 11,246,641 (4,373,116) (115,532,353) 49,317,922 1,834,013
10. Taxation 2,689,318 5,022,323 25,156,712 6,422,462 2,095,716
11. Profit / (loss) after taxation 8,557,323 (9,395,439) (90,375,641) 42,895,460 3,907,376
12. Net investment income 28,903,885 6,828,231 29,828,009 1,498,629 1,564,656
13. Commission expense 19,446,325 544,569,703 116,174,453 14,855,684 14,593,284
14. Management expenses 86,177,569 159,741,563 206,364,142 129,910,861 371,112,779
15. Wakala fees 121,756,000 459,421,984 169,035,236 202,307,548 72,074,327
Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for
the year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data
presented here and will not assume any liability due to any loss or damage caused by the usage of the informationpresented here. User discretion advised.
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The Islamic Financial Services Board
(IFSB) is pleased to announce the
upcoming awareness programmes
a n d t h e F a c i l i t a t i n g t h e
Implementation of IFSB Standards
workshops that will held throughoutthe third and fourth quarters of
2012.
Page 6 An initiative of IFP forum
Disclaimer:
The news included here is on the basis of information obtained from local and international print and electronic mediasources. IFP team does not accept any responsibility about their bona-fide.
In an aim to provide customers with Shariah-compliant banking productsand services in the near future, Oman Development Bank (ODB) has
decided to set up a team to study the current products and services the bank
offers and the possibility of adding new products and services that are in
line with Shariah. The team will submit its report by the end of August.
The sultanate has decided to allow the establishment of Islamic banking
and the opening of new outlets for Islamic banking products and services at
existing banks. The aim is to take advantage of the rising demand for
Islamic banking services and products.
Announcement of theIslamic Financial ServicesB o a r d ' s a w a r e n e s spr og r am an d F I S
workshops 2012
ODB constitutes team to study Islamic bankingproducts and services
Ithmaar support for keyBahrain event in Tokyo
Ithmaar Bank , a Bahrain-based
Islamic retail bank, threw its weight
behind an event, planned for the
Annual International Monetary
Fund (IMF)-World Bank meeting in
Tokyo, which aims to promote
Bahrain as a key financial hub in the
Middle East.
KFH-Turkey: 23 years ofsuccessful leadership ofKuwaiti private sector inTurkey
On 31st March 1989, KFH-Turkey
began officially working in Istanbul
as the first Islamic bank in Turkey.
The bank was a result of the
collaboration between Kuwait and
Turkey, who believed in establishing
an Islamic bank that depends on
Kuwait's experience in this field and
Turkey's promising economy. This
led to a bank that is a source of
pride for Kuwait and the GCC.
Saudi Arabia's approval of a
landmark mortgage law after a delay
of more than three years will give
rise to Islamic funding and tackle
some of the challenges in the real
estate sector in the Kingdom of
Saudi Arabia.
Mortgage law to spurIslamic finance
NASDAQ Dubai welcomed the
listing of a $650 million Sukuk
by Jebel Ali Free Zone ( JAFZ ) on its
market. The listing confirms the
exchange's status as the largest in the
Middle East for Islamic bonds,
bringing the total nominal value of
its listed Sukuk to $7.1 billion.
N A S D A Q D u b a iwelcomes $650 millionJAFZ Sukuk to its market
Bahrain-based Tharawat Investment
House ( Tharawat ), an Islamic
investment institution based in the
Kingdom of Bahrain, announced
five percent profit returns
of Tharawat Sukuk Fund for the
period from January to June 2012,
achieving a cumulative return of
17.4 % since its inception in
February 2010. Tharawat said it
would distribute around four
per cent for the period, making it
the fifth time of such distribution.
Tharawat Sukuk Fundyields 5% profit in firsthalf
Abu Dhabi Islamic Bank (ADIB), a
top-tier Islamic financial services
institution, announced the
appointment of Arif Usmani as the
Global Head of ADIB's Wholesale
Banking business.
Arif is a leading global banker withover 30 years of diverse banking
experience across several geographies
and disciplines. He has extensive
experience in risk management,
corporate relationship banking and
franchise management.
ADIB appoints new headof wholesale banking
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S&P Indices announced the launch
of the S&P/OIC COMCEC 50
Shariah Index, which is designed to
measure the performance of 50
l e a d i n g S h a r i a h - c o m p l i a n t
companies from the member states
of the Organization of Islamic
Cooperation (OIC). The Index has
been designed in partnership withthe OIC.
Page 7 An initiative of IFP forum
Disclaimer:
The news included here is on the basis of information obtained from local and international print and electronic mediasources. IFP team does not accept any responsibility about their bona-fide.
Oman's leading investment holding company Oman National InvestmentCorporation (ONIC) holding is negotiating with a regional Islamic
insurance firm to jointly promote a Takaful company in Oman.
ONIC Holding has already received an 'in principal' approval from the
Capital Market Authority (CMA), after the government decided to allow
Islamic banks and insurance firms.
However, a licence will be given only after the regulating authority
announces a separate set of rules for Shariah-compliant insurance
companies and Islamic debt instruments like Sukuk.
S&P Indices launchesShariah Index with OIC
ONIC starts dialogue for JV Takaful firm
Over 90% of Moroccanconsumers interested inIslamic finance surveyfindings revealed
Key findings published in July from
Morocco's first independent market
study, entitled 'Islamic Finance in
Morocco - Sizing the retail market'points to a very strong interest from
local consumers in Islamic Finance
products and services. Over 80% of
the Kingdom's consumers indicated
their likelihood to take up a Shariah
compliant financing (loan) upon
launch.
SIB launches leadershipdevelopment initiative
Sharjah Islamic Bank (SIB) launchedKawader Programme, an innovative
learning initiative aimed at
developing talented Emirati cadres
and qualifying them to hold higher
administrative positions in the
banks various departments and
branches.
Qatar Islamic Bank (QIB) has
compiled a hugely competitive suite
of vehicle financing initiatives to
coincide with the Holy Month. This
includes a very competitive Profit
rate, a five-month payment 'holiday'
(1st instalment in January 2013 ), acomprehensive Auto Takaful with
the best rate available in Qatar, free
Windows tinting voucher and a free
co-branded QIB/Qatar Airways card
for the first year.
Q I B a n n o u n c e sinnovative auto financingscheme for ramadan
As part of the Bank's contribution to
the UAE community, Dubai Islamic
Bank ( DIB ) announced the launch
of its annual Iktaseb summer
training programme for young UAE
nationals.
105 young Emiratisembark on DIBs Iktaseb
s u m m e r t r a i n i n gprogramme
Gulf region's issuance activity is
likely to remain fairly robust in thecoming quarters, partly because of
refinancing requirements, partly
thanks to formally approved
issuance programs by a growing
number of regional companies, most
notably banks, the National
Commercial Bank said in its latest
GCC Financial Market Quarterly.
Gulf bond issuanceactivity to remain fairlyrobust
The second quarter of this year saw
the GCC financial markets put up a
show of considerable resilience in
the face of elevated global economic
uncertainty as the eurozone crisis
deteriorated. Even though especially
Saudi interbank rates have edged up,largely in reflection of the growing
demand for credit, the regional
banks are strong and liquidity
conditions benign. The UAE and
Kuwait continue to lag behind,
however, due to a combination of
largely country-specific factors.
GCC seen as safe haven asuncertainties rattle globalfinancial markets
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Page 8 An initiative of IFP forum
Disclaimer:
The news included here is on the basis of information obtained from local and international print and electronic mediasources. IFP team does not accept any responsibility about their bona-fide.
The world's first postgraduate diploma on Halal industry is going to be
launched in Pakistan from November, which will be presented through
modern online technology concurrently around the world so that the
education and awareness regarding Halal food and products could be spread
in Muslim and non-Muslim countries with special reference for those
countries where Muslims are in minority and they remain tensed about Halalfood products.
This diploma would be of eight months which would consist of four modules
and each module would consist of two courses. In first module, concepts of
Halal and general guidance about Halal food would be taught whereas role of
food ingredients and Halal slaughtering in second module, prospective of
Halal industry world-wide and Halal banking in third module and Halal
standardisation and prospective of Halal industry in developed area will be
taught in fourth module.
World's first postgraduate diploma on Halal industrylaunched
Islamic banking in Pakistan is being
practiced on the basis of supply and
demand and not as mandatory by
t h e g o v e r n m e n t , s a i d
Jami atu r Ra sh ee d Ed uc atio n
Director Abdul Aziz Raja.
Addressing at a seminar on a case
study on A Blend of Contemporary
and Religious Education, held atKorangi Association of Trade and
Industry (KATI), Raja said that
banking ordinance was introduced
in 1974 but tabled in the House in
1984, under which the Islamic
banking in Pakistan should be
mandatory and not the option.
Islamic banking should beenforced under SC order
Attock Chamber of Commerce andIndustry (ACCI) said that growth
rate of Islamic banking in Pakistan is
v e r y i m p r e s s i v e .
75 countries have recognised Islamic
banking, major banks including
HSBC, Citigroup, Deutsche Bank
and Standard Chartered have
Islamic banking branches or
windows in Pakistan, which prove
success of Riba-free banking, said
President ACCI, Tariq Mehmood.
Islamic banking growth isimpressive
hearing a constitutional petition
filed by five Takaful companies,
challenging the rules.
The SECP allowed conventional
insurance companies to carry on
T a k a f u l b u s i n e s s t h r o u g h
one-window operations. The Takaful
companies had raised serious
objections that the new rules would
result in distortion of the Takaful
business in Pakistan.
SHC restrains SECP fromenforcing new TakafulRules
The Sindh High Court (SHC) on
Thursday restrained the Securities
and Exchange Commission of
Pakistan (SECP) from implementing
its Takaful Rules of 2012, while
Standard Chartered Bank (SCB)
arranged one-year $35 million
Islamic Structured Trade Finance
facility for Pakistan International
Airlines (PIA). The Bank was the
sole arranger and structuring bank
for this transaction. The facility is
structured as an offshore transactionunder an Islamic mode, which uses
Ijara concept based on purchase and
distribution of airline seats.
SCB arranges $35mIslamic Trade Financefacility for PIA
State Bank Governor Yaseen
Anwar has said that the Islamic
banking has great opportunity to
finance projects in agriculture and
small and medium enterprise
(SME) sectors which are the
avenues missed by conventional
financial institutions.
Islamic banks urged toexplore SME, farm sectors
Bank of Khyber (BoK)expanded its wings inIslamic Banking with thebrand name of BoK Raast
Managing Director, Mr. Bilal
Mustafa, said; BoK is committed
to cater the Banking requirements
of Islamic Banking as well as
conventional in a befitting manner
in order to encourage the
economic developmental activities
in the country through its
expanding network of branches.
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The book generally describes the
economical values for Muslim
ummah, and this being the very first
of the whole compilation the
compiler came up with the articles
which were intended for ethical and
moral building of the reader, as
This book is the first volume of the
8 volume set that is a compilation of
different articles written by Mufti
Muhammad Taqi Usmani. Some ofthem were published separately,
while others were a part of his other
independent books (the source of
the article is mentioned on the title
of each chapter).
The book starts with a preamble
written by Mufti Mahmood Ashraf
(who is also a very senior member of
the Darulifta Jamia Daruloom Khi)
in which he describes the
importance of innovational research
in the field of various aspects of a
Muslims life regarding Shariah
rulings which also includes Islamic
economic system, and he further
sheds light on the author and his
publications. The preamble is
followed by compilers views about
the contents of the book and his
inspiration and respect for the
original author.
good and bad intentions may render
economical benefits impermissible
for a Muslim. The first article is
about unwanted human attachmentwith fame and money, but on the
other hand also depicts the
importance of work and earn
income within the prescribed
Shariah limits. He even writes the
virtue of trading as it was also sunnat
of the Prophet (P.B.U.H) and the
evil practices involved in it today. All
of his discussions are supported with
Quranic verses and Hadiths with
t h e i r t r a n s l a t i o n s a n d
understandings, and they alsoinclude examples from the lives of
the companions of the Holy Prophet
(P.B.U.H) and the ongoing list of
the followers.
Page 9An initiative of IFP forum
Book in the Spotlight
Islamic Law of Contract
By Dr. Liaquat Ali Khan Niazi Volume 1
Reviewed by
Mufti Haseeb Ahmed
Published by: Research cell
Dayal Singh Trust Library,
Lahore
About the Author
Mufti Muhammad Taqi Usmani is one of the leading Islamic scholars living today. He is an expert in the fields
of Islamic Jurisprudence, Economics, Hadith and Tasawwuf. Born in Deoband in 1362H(1943 CE), he
graduated par excellence form Dars e Nizami at Darul Uloom, Karachi, Pakistan. Then he specialized in Islamic
Jurisprudence under the guidance of his eminent father, Mufti Muhammad Shafi, the late Grand Mufti of
Pakistan. Since then, he has been teaching hadith and Fiqh at the Darul-Uloom, Karachi. He also holds a
degree in law and was a Judge at the Sharia Appellate Bench of the Supreme Court of Pakistan. He has been
writing on various Islamic topics and is author of more than 60 books and numerous articles. Presently he is the
Vice-president of Darul-Uloom, Karachi, Pakistan, where he teaches Sahih Bukhari, Fiqh and Islamic
economics.
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Page 10 An initiative of IFP forum
Ask UsBy Mufti Ibrahim Essa and Mufti Javed Ahmed
Question:
In a deferred sale contract, is it
permissible to stipulate a
condition that the seller will
retain the subjectmatter into
his ownership until the full
payment of the price?
Answer:
A seller is not allowed to
stipulate, after conclusion of a
sale contract, a right to retain
an asset sold on a deferred
basis, as security for payment.
This is because the legal effect
of a sale contract is the transfer
of ownership of the asset sold.
However, it is permissible for
the seller to stipulate that the
buyer should release the sold
asset into the sellers custody
as pledge of security so as toensure recovery of the
remaining deferred
installments. It is also
permissible for the buyer to
retain an asset sold on an
immediate payment basis until
the consideration for the asset
is paid.
Question:In an Ijarah transaction, if the
lessee stops using the leased
asset or returns it to the asset
before the term expires, is it
permissible to charge him the
remaining rentals of that
period where the leased asset
was not used by the lessee?
Moreover, can the lessor lease
that asset to another person for
that period?
Answer:
If the lessee stops using the
leased or returns it to the
owner without the owners
consent, the rental will
continue to be due in respect of
the remaining period of the
Ijarah and the lessor may notlease the property to another
lessee for this period, but must
keep it at the disposal of the
current lessee.
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Financial summary of the Islamic banks for the year 2011
Page 11 An initiative of IFP forum
Statement of Financial Position Figure in Rs.000
Sr.
No Description
Meezan
Bank
Dubai Islamic
Bank Burj Bank
Al-Baraka
Bank Bank Islami
1. Balances with other banks 2,348,076 1,116,928 2,215,636 7,577,186 549,277
2. Investments 98,488,574 9,982,793 21,067,082
3. Financings 59,155,585 23,340,602 10,509,340 27,610,708 20,110,401
4. Total assets 200,550,394 48,196,449 27,644,829 72,544,879 58,821,314
5. Due to financial institutions 9,235,960 1,898,500 447,300 1,736,120 800,000
6. Deposits and other accounts 170,030,431 38,491,607 20,341,241 61,559,026 50,568,785
7. Total liabilities 186,764,043 41,962,400 21,840,251 66,020,396 53,508,676
8. Net assets 13,786,351 6,234,049 5,804,578 6,524,483 5,312,638
Statement of Comprehensive Income
9. Profit on financings 18,032,152 4,632,785 2,375,585 6,699,178 5,502,154
10. Return on deposits 8,665,622 2,395,995 1,423,171 5,001,222 2,883,355
11. Provisions 1,389,155 10,075 251,580 (227,176 ) 21,423
12. Net spread after provisions 7,977,375 2,226,715 700,834 1,925,132 2,597,376
13. Total other income 2,504,755 457,136 188,537 482,058 226,709
14.
Administrative and other
expenses 6,125,830 2,367,722 1,236,279 1,926,488 2,215,498
15. Profit / (Loss) before taxation 4,356,300 316,129 (346,908) 480,702 608,587
16. Profit / (Loss) after taxation 3,391,543 190,486 (288,488) 410,370 409,556
Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for the
year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data
presented here and will not assume any liability due to any loss or damage caused by the usage of the information presentedhere. User discretion advised.
IBIs and IBDs analysis was reported in previous issues separately. They are being reported together again in this issue to
provide a comparison between them.
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Financial summary of the Islamic bank divisions for the year 2011
Page 12 An initiative of IFP forum
Statement of Financial Position Figure in Rs.000
Sr.
No Description ABL BAHL BOK FBL UBL BAFL
1. Balances with other banks 528,613 494,968 530,736 173,799 1,714,138 5,842,516
2. Investments 9,818,059 1,362,945 7,722,833 5,586,837 4,490,991 42,926,997
3. Financings 3,036,063 5,359,450 3,071,604 4,974,329 521,109 -
4. Total assets 14,956,845 8,319,891 12,612,588 12,651,579 8,791,159 6,231,385
5. Due to financial institutions - 1,192,491 - - - -
6. Deposits and other accounts 11,842,633 5,447,863 10,058,574 10,977,485 8,155,280 80,780,324
7. Total liabilities 14,037,447 7,045,815 10,734,306 11,846,582 8,303,333 87,104,550
8. Net assets 919,398 1,274,076 1,878,282 804,997 487,826 6,231,385
Statement of Comprehensive Income
9. Profit on financings 1,312,988 1,029,044 1,249,127 1,117,006 595,492 8,062,131
10. Return on deposits 831,691 569,686 393,780 597,956 437,892 4,345,541
11. Provisions 78,301 - 28,887 16,463 29,874 39,521
12. Net spread after provisions 559,598 459,358 826,460 502,587 187,474 2,752,892
13. Total other income 59,006 41,383 89,533 23,275 40,946 573,840
14.
Administrative and other
expenses 520,055 128,635 424,188 395,586 216,494 1,896,235
15. Profit / (Loss) before taxation 98,549 372,106 491,805 130,276 11,926 1,430,497
Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for
the year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data
presented here and will not assume any liability due to any loss or damage caused by the usage of the information presentedhere. User discretion advised.
The analysis of IBDs is reported again with the inclusion of Bank Al Falah Limited (BAFL) which was not in-
cluded in the previous issue as its financial data was not available. Previously SCB was reported as the highest profitbefore taxation among all the IBDs with a profit of 1.2 billion whereas now with the inclusion of BAFL it is the
leading IBD with a profit of 1.4 billion in FY 2011. The increase in profit of BAFL is 16% compared to SCB in the
FY 2011. BAFL net assets are of 6.2 billion and SCB net assets are of 3 billion. Detailed comparative analysis of the
IBDs was covered in our previous issue of July 2012.
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Page 13 An initiative of IFP forum
Financial summary of the Islamic bank divisions for the year 2011
Page 13 An initiative of IFP forum
Statement of Financial Position Figure in Rs.000
Sr.No Description HBL MCB SBL SCB HMB
1. Balances with other banks 16,606 - 26 1,744,661 -
2. Investments 12,648,185 2,938,706 606,897 5,923,668 10,050,774
3. Financings 933,881 5,611,142 1,764,097 14,335,084 6,446,125
4. Total assets 15,738,926 13,223,995 2,998,169 28,705,376 18,610,310
5. Due to financial institutions - - 123,975 1,922,500 -
6. Deposits and other accounts 11,944,594 7,305,780 2,171,638 16,533,520 14,747,474
7. Total liabilities 14,570,074 12,032,397 2,745,811 25,783,554 17,041,077
8. Net assets 1,168,852 1,191,598 252,358 2,921,822 1,569,233
Statement of Comprehensive Income
9. Profit on financings 2,086,280 1,422,236 398,079 2,355,604 2,094,756
10. Return on deposits 1,214,450 979,325 353,530 627,700 1,452,193
11. Provisions 365,363 36,743 157,332 185,514 73,602
12. Net spread after provisions 506,467 406,168 (112,783) 1,542,390 568,961
13. Total other income 42,599 114,519 145,012 461,967 69,407
14.
Administrative and other
expenses 240,084 344,353 165,991 797,869 99,435
15.
Profit / (Loss) before
taxation 308,982 176,334 (147,219) 1,206,488 538,933
Disclaimer:The data presented in this summary is extracted from the published audited financial statements of the respective banks for
the year ended 31 December 2011. The newsletters management does not take any responsibility of authencity of any data
presented here and will not assume any liability due to any loss or damage caused by the usage of the informationpresented here. User discretion advised.
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