islami bank bangladesh limited and its subsidiaries ... yearly financial...(mohammed shahid ullah,...

As at

30 June 2014

As at

31 December 2013

Cash in hand 45,761,039,955 44,291,523,619

Cash in hand (including foreign currency) 7,401,723,402 8,180,346,965

38,359,316,553 36,111,176,654

Balance with other banks & financial institutions 10,628,391,010 12,700,116,779

In Bangladesh 6,164,595,316 7,950,737,265

Outside Bangladesh 4,463,795,694 4,749,379,514

Placement with banks & other financial institutions - -

Investments in shares & securities 86,545,486,621 66,098,953,627

Government 84,520,977,770 63,698,877,770

Others 2,024,508,851 2,400,075,857

Investments 429,233,839,135 406,604,555,430

General investments etc. 389,733,849,442 363,507,873,960

Bills purchased & discounted 39,499,989,693 43,096,681,470

Fixed assets including premises 15,888,948,610 15,738,858,683

Other assets 12,881,797,864 4,545,107,670

Non - banking assets - -

Total property and assets 600,939,503,195 549,979,115,808

(Mohammed Shahid Ullah, ACA)

Chief Financial Officer

As at 30 June 2014Condensed Consolidated Balance Sheet (Un-audited)

Islami Bank Bangladesh Limited and its Subsidiaries

Balance with Bangladesh Bank & its agent bank(s) (including

foreign currency)

Property and assets

Managing Director

(Mohammad Abdul Mannan)

Amount in Taka

As at

30 June 2014

As at

31 December 2013

LiabilitiesPlacement from banks & other financial institutions - -

Deposits & other accounts 524,210,964,996 472,121,971,348

Mudaraba savings deposits 164,519,909,031 155,191,605,056

Mudaraba term deposits 153,242,370,929 130,523,371,328

Other mudaraba deposits 143,451,077,173 130,276,510,230

Al- wadeeah current and other deposit accounts 58,786,644,391 52,000,826,777

Bills payable 4,210,963,472 4,129,657,957

Mudaraba perpetual bond 3,000,000,000 3,000,000,000

Other liabilities 29,920,417,772 30,874,281,277

Deferred tax liabilities 194,189,314 194,189,314

Total liabilities 557,325,572,082 506,190,441,939

Capital/shareholders' equity 43,613,931,113 43,788,673,869

Paid - up capital 16,099,906,680 14,636,278,800

Statutory reserve 14,638,613,627 14,638,613,627

Other reserves 11,897,962,039 11,875,862,039

Retained earnings 977,390,313 2,637,858,071

Non-controlling interest 58,454 61,332

Total liabilities & shareholders' equity 600,939,503,195 549,979,115,808

Contingent liabilities

Acceptances & endorsements - -

Letters of guarantee 7,889,815,056 7,354,594,651

Irrevocable letters of credit (including back to back bills) 108,601,152,012 83,946,725,635

Bills for collection 20,451,522,162 22,390,676,317

Other contingent liabilities 23,581,701 23,581,701

Total 136,966,070,931 113,715,578,304

Other commitments

Documentary credits, short term and trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance, revolving and underwriting facilities - -

- -

- -

136,966,070,931 113,715,578,304

27.09 27.20

The annexed notes form an integral part of these condensed interim financial report.




Off-balance Sheet Items

Amount in Taka


As at 30 June 2014Condensed Consolidated Balance Sheet (Un-audited)

Managing Director

Consolidated Net Asset Value (NAV) per share (Previous year's

figure restated)

Total off-balance sheet items including contingent liabilities

Undrawn formal standby facilities, credit lines and other

commitments

Total

Liabilities and capital

01 January to

30 June 2014

01 January to

30 June 2013

01 April to

30 June 2014

01 April to

30 June 2013

Investment income 24,437,608,866 23,803,078,243 12,126,713,708 11,907,457,488

Profit paid on mudaraba deposits (14,991,977,614) (15,006,016,776) (6,623,351,682) (8,127,651,446)

Net investment income 9,445,631,252 8,797,061,467 5,503,362,026 3,779,806,042

Income from investments in shares & securities 804,946,746 1,020,508,235 447,830,290 791,520,315

Commission, exchange & brokerage income 2,809,999,204 2,288,473,827 1,471,512,615 1,294,237,423

Other operating income 557,031,922 489,395,599 468,703,919 421,470,348

Total operating income 13,617,609,124 12,595,439,128 7,891,408,850 6,287,034,128

Operating expensesSalary & allowances 3,201,639,108 2,717,623,920 1,631,352,746 1,372,631,433

Rent, taxes, insurances, electricity etc. 460,441,814 368,506,368 264,339,364 201,930,415

Legal expenses 7,505,964 12,108,327 3,297,920 8,292,440

Postage, stamps and telecommunication etc. 16,066,688 16,028,203 7,532,065 9,385,628

Stationery, printing and advertisement etc. 122,109,574 133,325,241 89,775,945 96,388,579

Chief executive's salary & fees 3,023,000 2,223,548 836,500 1,278,548

Directors' fees & expenses 5,938,313 5,332,824 3,579,922 3,580,729

1,296,596 637,828 944,255 164,241

Auditors' fees 46,000 - 4,250 -

Charges on investment losses - - - -

Depreciation and repair to bank's assets 400,030,194 321,363,723 207,036,408 164,312,705

Zakat expenses 215,714,467 162,386,386 116,912,537 81,193,193

Other expenses 622,662,170 591,192,628 271,755,708 251,186,820

Total operating expenses 5,056,473,888 4,330,728,996 2,597,367,620 2,190,344,731

Profit/ (loss) before provision 8,561,135,236 8,264,710,132 5,294,041,230 4,096,689,397 - -

3,713,270,000 3,012,440,000 2,321,403,000 1,129,880,000

207,422,463 102,283,689 130,841,958 (57,281,570)

41,448,000 7,005,000 41,448,000 7,005,000

Total provision 3,962,140,463 3,121,728,689 2,493,692,958 1,079,603,430

Total profit/(loss) before taxes 4,598,994,773 5,142,981,443 2,800,348,272 3,017,085,967

Provision for taxation for the period 3,624,935,225 3,605,123,489 2,210,333,945 1,732,609,926

Current tax 3,624,935,225 3,605,295,677 2,210,333,945 1,732,696,107

Deferred tax - (172,188) - (86,181)

Net profit/ (loss) after tax 974,059,548 1,537,857,954 590,014,327 1,284,476,041

Net profit after tax attributable to: 974,059,548 1,537,857,954 590,014,327 1,284,476,041

Equity holders of IBBL 974,062,426 1,537,858,791 590,016,422 1,284,474,263

Non-controlling interest (2,878) (837) (2,095) 1,778

Retained earnings from previous year 2,637,858,071 3,073,402,299 2,637,858,071 3,073,402,299

974,062,426 1,537,858,791 590,016,422 1,284,474,263

Profit available for appropriation 3,611,920,497 4,611,261,090 3,227,874,493 4,357,876,562

Appropriation: 3,611,920,497 4,611,261,090 3,227,874,493 4,357,876,562

Statutory reserve - - - -

General reserve - - - -

Dividend 2,634,530,184 3,127,410,000 2,634,530,184 3,127,410,000

Retained earnings 977,390,313 1,483,851,090 593,344,309 1,230,466,562

0.61 0.96 0.37 0.80




Add: Net profit after tax (attributable to equity

holders of IBBL)


Managing Director

Operating income


Condensed Consolidated Profit & Loss Account (Un-audited)

For the half year ended 30 June 2014

Amount in Taka

Consolidated Earnings Per share (EPS)

(Previous year's figure restated)

Other provisions

Shari'ah supervisory committee's fees &

expenses

Provision for investments & off- balance sheet

itemsProvision for diminution in value of investments

in shares

01 January to

30 June 2014

01 January to 30

June 2013

Investment income 23,340,618,026 22,942,091,965

Profit paid on mudaraba deposits (17,086,138,279) (17,560,191,052)

Income/ dividend receipt from investments in shares & securities 804,946,746 1,020,508,235

Fees & commission receipt in cash 2,809,999,204 2,288,473,827

Recovery from written off investments 19,047,277 7,632,307

Payments to employees (3,204,662,108) (2,719,847,468)

Cash payments to suppliers (132,669,992) (139,803,199)

Income tax paid (3,324,292,989) (3,214,610,095)

Receipts from other operating activities 568,002,617 521,884,362

Payments for other operating activities (1,154,369,248) (1,045,876,828)

(i) Operating profit before changes in operating assets 2,640,481,254 2,100,262,054

Changes in operating assets and liabilities

Increase/decrease of statutory deposits - -

Increase/decrease of net trading securities - -

Increase/decrease of placement to other banks - -

Increase/decrease of investments to customers (22,749,283,705) (11,680,121,453)

Increase/decrease of other assets (8,017,358,294) (4,948,256,230)

Increase/decrease of deposits from other banks (66,406,317) 9,959,920,189

Increase/decrease of deposits received from customers 47,078,891,493 12,675,788,955

Increase/decrease of other liabilities account of customers - -

Increase/decrease of trading liabilities - -

Increase/decrease of other liabilities 1,881,858,279 2,477,548,505

(ii) Cash flows from operating assets and liabilities 18,127,701,456 8,484,879,966

Net cash flows from operating activities (A)=(i+ii) 20,768,182,710 10,585,142,020

Cash flows from investing activities

Proceeds from sale of securities 436,192,345 400,785,809

Payment for purchase of securities/BGIIB (20,819,498,665) (22,997,922,156)

Payment for purchase of securities/membership (550,720,399) (677,875,776)

Purchase/sale of property, plants & equipments (483,849,803) (649,369,174)

Purchase/sale of subsidiaries - -

Net Cash flows from investing activities (B) (21,417,876,522) (23,924,381,297)

Cash flows from financing activities

Receipts from issue of debt instruments 120,000,000 -

Payment for redemption of debt instruments - -

Receipts from issuing ordinary share/ rights share - -

Dividend paid in Cash (1,170,902,304) (1,000,771,200)

Net cash flows from financing activities (C) (1,050,902,304) (1,000,771,200)

Net increase/(decrease) in cash (A+B+C) (1,700,596,116) (14,340,010,477)

Add/(less): effects of exchange rate changes on cash & cash equivalent - -

Add: cash & cash equivalents at beginning of the year 58,090,027,081 66,298,945,720

Cash & cash equivalents at the end of the period 56,389,430,965 51,958,935,243

Consolidated Net Operating Cash Flow Per Share (NOCFPS)

(Previous year's figure restated)

12.90 6.57





Condensed Consolidated Cash Flow Statement (Un-audited)

Amount in Taka


Managing Director

Cash flows from operating activities

(Amount in Taka)

1 2 3 4 5 6 7 8 9 10(2+3+4+5+6+7+8+9

)Balance as at 01 January 2014 14,636,278,800 1,989,633 14,638,613,627 312,301,086 11,498,971,320 62,600,000 2,637,858,071 61,332 43,788,673,869

Changes in accounting policy restated balance

Surplus/ (deficit) on account of revaluation of properties - - - - - - - - -

Surplus/ (deficit) on account of revaluation of investments (shares

& securities)- - - - - 22,100,000 - - 22,100,000

Currency translation differences - - - - - - - -

Net gain and losses not recognized in the income statement - - - - - - - - -

Net profit for the period - - - - - 974,062,426 (2,878) 974,059,548

Transfer to reserve - - - - - - - - -

Dividend: - - - - - - - - -

Bonus shares 1,463,627,880 - - - - - (1,463,627,880) - -

Cash dividend - - - - - - (1,170,902,304) - (1,170,902,304)

Issue of Share Capital - - - - - - - - -

Total shareholders' equity as on 30 June 2014 16,099,906,680 1,989,633 14,638,613,627 312,301,086 11,498,971,320 84,700,000 977,390,313 58,454 43,613,931,113

Total shareholders' equity as on 30 June 2013 14,636,278,800 1,989,633 12,423,662,342 159,136,208 11,498,971,320 69,450,000 1,483,851,090 58,757 40,273,398,150

Add: Mudaraba Perpetual Bond - - - - - - - - 3,000,000,000

Add: General provision for unclassified investments and off-

balance sheet items- - - 5,042,660,000 - - - - 5,042,660,000

Adjustment for currency translation differences - - - (1,317,771) - - - - (1,317,771)

Less: 50.00% of assets revaluation reserve - - - - (5,749,485,660) - - - (5,749,485,660)

Less: 50.00% of revaluation reserve of securities - - - - - (42,350,000) - - (42,350,000)

Total equity as on 30 June 2014 16,099,906,680 1,989,633 14,638,613,627 5,353,643,315 5,749,485,660 42,350,000 977,390,313 58,454 45,863,437,682

Total equity as on 30 June 2013 14,636,278,800 1,989,633 12,423,662,342 4,545,979,979 5,749,485,660 34,725,000 1,483,851,090 58,757 41,876,031,261

30.06.2013

130,439,979

32,000,000

(3,303,771)

159,136,208




Managing Director

01.01.2014

278,983,315

32,000,000

*Note : general / other reserves

General reserve

Dividend equalization


Condensed Consolidated Statement of Changes in Equity (Un-audited)


Paid-up capital Share premiumStatutory

reserve

General/ other

reserves *Particulars

Revaluation

reserve of

securities

01 January to

30 June 2014

Assets

revaluation

reserve

1,317,771 Currency translation differences (Translation reserve)

312,301,086

Non-

controlling

interest

Total

Retained

earnings

As at

30 June 2014

As at

31 December 2013

Cash in hand 45,761,033,194 44,291,514,939

Cash in hand (including foreign currency) 7,401,716,641 8,180,338,285

38,359,316,553 36,111,176,654

Balance with other banks & financial institutions 10,245,103,378 12,327,320,344

In Bangladesh 5,781,307,684 7,577,940,830

Outside Bangladesh 4,463,795,694 4,749,379,514

Placement with banks & other financial institutions - -

Investments in shares & securities 88,052,997,633 67,211,398,968

Government 84,520,977,770 63,698,877,770

Others 3,532,019,863 3,512,521,198

Investments 429,553,839,135 406,804,555,430

General investments etc. 390,053,849,442 363,707,873,960

Bills purchased & discounted 39,499,989,693 43,096,681,470

Fixed assets including premises 15,883,808,764 15,732,808,589

Other assets 12,504,395,761 4,471,783,137

Non - banking assets - -

Total property and assets 602,001,177,865 550,839,381,407

(Mohammed Shahid Ullah, ACA) (Mohammad Abdul Mannan)

Chief Financial Officer Managing Director

Balance with Bangladesh Bank & its agent bank(s) (including

foreign currency)

Islami Bank Bangladesh Limited

Condensed Balance Sheet (Un-Audited)

Amount in Taka

As at 30 June 2014

Property and assets

As at

30 June 2014

As at

31 December 2013

LiabilitiesPlacement from banks & other financial institutions - -

Deposits & other accounts 525,222,702,070 473,140,955,031

Mudaraba savings deposits 164,521,410,650 155,193,986,663

Mudaraba term deposits 154,160,445,257 131,412,377,473

Other mudaraba deposits 143,452,473,278 130,280,784,960

Al- wadeeah current and other deposit accounts 58,877,409,413 52,124,147,978

Bills payable 4,210,963,472 4,129,657,957

Mudaraba perpetual bond 3,000,000,000 3,000,000,000

Other liabilities 29,827,526,651 30,719,007,685

Deferred tax liabilities 194,134,041 194,134,041

Total liabilities 558,244,362,762 507,054,096,757

Capital/shareholders' equity 43,756,815,103 43,785,284,650

Paid - up capital 16,099,906,680 14,636,278,800

Statutory reserve 14,638,613,627 14,638,613,627

Other reserves 11,897,962,039 11,875,862,039

Retained earnings 1,120,332,757 2,634,530,184

Total liabilities & shareholders' equity 602,001,177,865 550,839,381,407

Contingent liabilities

Acceptances & endorsements - -

Letters of guarantee 7,889,815,056 7,354,594,651

Irrevocable letters of credit (including back to back bills) 108,601,152,012 83,946,725,635

Bills for collection 20,451,522,162 22,390,676,317

Other contingent liabilities 23,581,701 23,581,701

136,966,070,931 113,715,578,304

Other commitments

Documentary credits, short term and trade related transactions - -

Forward assets purchased and forward deposits placed - -

Undrawn note issuance, revolving and underwriting facilities - -

- -

- -

136,966,070,931 113,715,578,304

27.20




Total

Amount in Taka

Liabilities and capital

Islami Bank Bangladesh LimitedCondensed Balance Sheet (Un-Audited)

As at 30 June 2014

Off-balance Sheet Items


Undrawn formal standby facilities, credit lines and other

commitments

27.18

Managing Director

Net Asset Value (NAV) per share (Previous year's figure

restated)

Total off-balance sheet items including contingent liabilities

Total

01 January to

30 June 2014

01 January to

30 June 2013

01 April to

30 June 2014

01 April to

30 June 2013

Investment income 24,437,608,866 23,803,078,243 12,126,713,708 11,907,457,488

Profit paid on mudaraba deposits (15,021,995,586) (15,045,298,225) (6,635,898,503) (8,140,357,439)

Net investment income 9,415,613,280 8,757,780,018 5,490,815,205 3,767,100,049

Income from investments in shares & securities 772,517,437 996,219,510 430,130,310 771,203,310

Commission, exchange & brokerage income 2,805,172,943 2,284,386,152 1,469,519,592 1,266,664,047

Other operating income 534,313,332 462,539,771 458,480,558 407,053,538

Total operating income 13,527,616,992 12,500,925,451 7,848,945,665 6,212,020,944

Operating expensesSalary & allowances 3,196,119,631 2,711,474,739 1,628,257,254 1,369,057,403

Rent, taxes, insurances, electricity etc. 458,530,148 367,170,337 263,371,614 201,270,878

Legal expenses 7,505,964 12,050,827 3,297,920 8,292,440

Postage, stamps and telecommunication etc. 15,978,977 15,974,130 7,470,062 9,334,767

Stationery, printing and advertisement etc. 122,006,755 133,238,193 89,689,279 96,327,292

Chief executive's salary & fees 3,023,000 2,223,548 836,500 1,278,548

Directors' fees & expenses 5,696,813 5,332,824 3,464,922 3,580,729

Shari'ah supervisory committee's fees & expenses 1,296,596 637,828 944,255 164,241

Auditors' fees - - - -

Charges on investment losses - - - -

Depreciation and repair to bank's assets 397,889,376 319,252,351 205,810,006 163,201,966

Zakat expenses 215,714,467 162,386,386 116,912,537 81,193,193

Other expenses 621,537,191 590,181,706 271,356,964 250,553,754

Total operating expenses 5,045,298,918 4,319,922,869 2,591,411,313 2,184,255,211

Profit/ (loss) before provision 8,482,318,074 8,181,002,582 5,257,534,352 4,027,765,733

3,713,270,000 3,012,440,000 2,321,403,000 1,129,880,000

2,282,136 159,912 1,574,621 159,912

Other provisions 41,448,000 7,005,000 41,448,000 7,005,000

Total provision 3,757,000,136 3,019,604,912 2,364,425,621 1,137,044,912

Total profit/(loss) before taxes 4,725,317,938 5,161,397,670 2,893,108,731 2,890,720,821

Provision for taxation for the period 3,604,985,181 3,579,343,255 2,197,252,859 1,718,931,761

Current tax 3,604,985,181 3,579,343,255 2,197,252,859 1,718,931,761

Deferred tax - - - -

Net profit/ (loss) after tax 1,120,332,757 1,582,054,415 695,855,872 1,171,789,060

Retained earnings from previous year 2,634,530,184 3,152,246,877 2,634,530,184 3,152,246,877

Add: Net profit after tax 1,120,332,757 1,582,054,415 695,855,872 1,171,789,060

Profit available for appropriation 3,754,862,941 4,734,301,292 3,330,386,056 4,324,035,937

Appropriation: 3,754,862,941 4,734,301,292 3,330,386,056 4,324,035,937

Statutory reserve - - - -

General reserve - - - -

Dividend 2,634,530,184 3,127,410,000 2,634,530,184 3,127,410,000

Retained earnings 1,120,332,757 1,606,891,292 695,855,872 1,196,625,937

0.70 0.98 0.43 0.73




Islami Bank Bangladesh LimitedCondensed Profit & Loss Account (Un-Audited)



Managing Director

Provision for diminution in value of investments in

shares

Earnings Per Share (EPS) (Previous year's

figure restated)

Amount in Taka

Operating income

Provision for investments & off- balance sheet

items (Note-7.0)

01 January to

30 June 2014

01 January to

30 June 2013

Investment income 23,340,618,026 22,942,091,965

Profit paid on mudaraba deposits (17,086,138,279) (17,560,191,052)

Income/ dividend receipt from investments in shares & securities 772,517,437 996,219,510

Fees & commission receipt in cash 2,805,172,943 2,284,386,152

Recovery from written off investments 19,047,277 7,632,307

Payments to employees (3,199,142,631) (2,713,698,287)

Cash payments to suppliers (132,567,173) (139,716,151)

Income tax paid (3,289,071,654) (3,183,893,808)

Receipts from other operating activities 515,266,055 454,907,464

Payments for other operating activities (1,150,391,613) (1,042,962,646)

(i) Operating profit before changes in operating assets 2,595,310,388 2,044,775,454

Changes in operating assets and liabilities

Increase/decrease of statutory deposits - -

Increase/decrease of net trading securities - -

Increase/decrease of placement to other banks - -

Increase/decrease of investments to customers (22,749,283,705) (11,705,155,262)

Increase/decrease of other assets (8,032,612,624) (4,948,531,330)

Increase/decrease of deposits from other banks (66,406,317) 9,959,920,189

Increase/decrease of deposits received from customers 48,080,202,094 13,681,208,319

Increase/decrease of other liabilities account of customers - -

Increase/decrease of trading liabilities - -

Increase/decrease of other liabilities 2,033,975,631 2,239,445,512

(ii) Cash flows from operating assets and liabilities 19,265,875,079 9,226,887,428

Net cash flows from operating activities (A)=(i+ii) 21,861,185,467 11,271,662,882

Cash flows from investing activities

Proceeds from sale of securities - -

Payment for purchase of securities/BGIIB (20,819,498,665) (22,997,922,156)

Payment for purchase of securities/membership - -

Purchase/sale of property, plants & equipments (483,483,209) (649,327,674)

Purchase/sale of subsidiaries - -

Net Cash flows from investing activities (B) (21,302,981,874) (23,647,249,830)

Cash flows from financing activities

Receipts from issue of debt instruments - -

Payment for redemption of debt instruments - -

Receipts from issuing ordinary share/ rights share - -

Dividend paid in Cash (1,170,902,304) (1,000,771,200)

Net cash flows from financing activities (C) (1,170,902,304) (1,000,771,200)

Net increase/(decrease) in cash (A+B+C) (612,698,711) (13,376,358,148)

Add/(less): effects of exchange rate changes on cash & cash equivalent - -

Add: cash & cash equivalents at beginning of the year 56,618,835,283 64,822,357,854

Cash & cash equivalents at the end of the period 56,006,136,572 51,445,999,706

13.58 7.00



Amount in Taka


Condensed Cash Flow Statement (Un-Audited)


Net Operating Cash Flow Per Share (NOCFPS) (Previous year's figure restated)


Managing Director

Cash flows from operating activities

(Amount in Taka)

Particulars Paid-up capital Share premiumStatutory

reserve

General/ other

reserves *

Assets

revaluation

reserve

Revaluation

reserve of

securities

Retained earnings01 January to

30 June 2014

1 2 3 4 5 6 7 8 9 (2+3+4+5+6+7+8)

Balance as at 01 January 2014 14,636,278,800 1,989,633 14,638,613,627 312,301,086 11,498,971,320 62,600,000 2,634,530,184 43,785,284,650

Changes in accounting policy restated balance

Surplus/ (deficit) on account of revaluation of properties - - - - - - - -

Surplus/ (deficit) on account of revaluation of investments (shares & securities) - - - - - 22,100,000 - 22,100,000

Currency translation differences - - - - - - - -

Net gain and losses not recognized in the income statement - - - - - - - -

Net profit for the period - - - - - 1,120,332,757 1,120,332,757

Transfer to reserve

Dividend: - - - - - - - -

Bonus shares 1,463,627,880 (1,463,627,880) -

Cash dividend (1,170,902,304) (1,170,902,304)

Issue of Share Capital - - - - - - - -

Total shareholders' equity as on 30 June 2014 16,099,906,680 1,989,633 14,638,613,627 312,301,086 11,498,971,320 84,700,000 1,120,332,757 43,756,815,103

Total shareholders' equity as on 30 June 2013 14,636,278,800 1,989,633 12,423,662,342 159,136,208 11,498,971,320 69,450,000 1,606,891,292 40,396,379,595

Add: Mudaraba Perpetual Bond - - - - - - - 3,000,000,000

Add: General provision for unclassified investments and off- balance sheet items - - - 5,042,660,000 - - - 5,042,660,000

Adjustment for currency translation differences (1,317,771) (1,317,771)

Less: 50.00% of assets revaluation reserve - - - - (5,749,485,660) - - (5,749,485,660)

Less: 50.00% of revaluation reserve of securities - - - - - (42,350,000) - (42,350,000)

Total equity as on 30 June 2014 16,099,906,680 1,989,633 14,638,613,627 5,353,643,315 5,749,485,660 42,350,000 1,120,332,757 46,006,321,672

Total equity as on 30 June 2013 14,636,278,800 1,989,633 12,423,662,342 4,545,979,979 5,749,485,660 34,725,000 1,606,891,292 41,999,012,706

01.01.2014 30.06.2013

278,983,315 130,439,979

32,000,000 32,000,000

1,317,771 (3,303,771)

312,301,086 159,136,208



Dividend equalization

Currency translation differences (Translation reserve)

Total


Managing Director

*Note : general / other reserves

General reserve

Islami Bank Bangladesh Limited Condensed Statement of Changes in Equity (Un-Audited)


1.0 The Bank and its activities

1.1

1.2 Nature of business/principal activities of the Bank

2.0 Basis of preparation

2.1 Statement of compliance

2.2 Authorization of the financial statements for issue

The operations of the Bank and its subsidiaries are in strict compliance with the rules of Islamic Shari’ah. This

condensed consolidated and separate interim financial report for the half year ended 30 June 2014 of the Bank

has been prepared in accordance with "BAS: 34 Interim Financial Reporting" and as per Bangladesh Bank (BB)

Department of Banking Inspection (DBI) Circular Letter No. 01 dated 24 February 2004 and as per Rule 13 of

Securities & Exchange Rules 1987. Selected explanatory notes are included to explain events and transactions

that are significant to an understanding of the changes in financial position and performance of the Bank since

the last annual consolidated and separate financial statements as at and for the year ended 31 December 2013.

This condensed consolidated and separate interim financial report does not include all the information required

for full annual financial statements prepared in accordance with Bangladesh Financial Reporting Standards.

The condensed consolidated and separate interim financial report of the Bank have been authorized for issue

by the Board of Directors on 17 July 2014.


Notes to the condensed consolidated interim financial report (Un-audited) As at and for the half year ended 30 June 2014

Islami Bank Bangladesh Limited ("the Bank"/"IBBL") was established as a Public Limited Banking Company in

Bangladesh in 1983 as the first interest free Shari’ah based Scheduled Commercial Bank in the South East Asia.

Naturally, its modus operandi is substantially different from those of other conventional Commercial Banks. The

Bank conducts its business on the Shari'ah principles of Mudaraba, Musharaka, Bai-Murabaha, Bai-Muajjal, Hire

Purchase under Shirkatul Melk, Bai-Salam and Bai-as-Sarf etc. There is a Shari'ah Supervisory Committee in the

Bank who ensures that the activities of the Bank are being conducted on the precepts of Islam. The Shari‘ah

Supervisory Committee consists of prominent Shari'ah scholars, reputed Bankers, renowned Lawyers and

eminent Economists.

These interim financial report as at and for the half year ended 30 June 2014 include the condensed

consolidated and the separate financial report of the Bank. The condensed consolidated interim financial

report comprise the financial statements of the Bank and its two subsidiaries - Islami Bank Securities Limited

(IBSL) and Islami Bank Capital Management Limited (IBCML) - together referred to as "the Companies".

All kinds of commercial banking services including Islamic micro-finance under Rural Development Scheme

(RDS) and Urban Poor Development Scheme (UPDS), mobile financial services under the "Islami Bank mCash"

are provided by the Bank to the customers following the principles of Islamic Shari’ah, the provisions of the

Bank Company Act, 1991 as amended upto 2013, Bangladesh Bank’s directives and directives of other

regulatory authorities. The Bank also provide services to its clients through currently two offshore-banking units

(OBUs) located at Head Office Complex Branch and Agrabad Branch.

There are two Stock Exchanges in Bangladesh viz. Dhaka Stock Exchange Limited and Chittagong Stock

Exchange Limited and the shares of the Bank are listed with both the Stock Exchanges. The Bank carries out its

business activities through its Head Office in Dhaka, 14 Zonal Offices and 286 branches including 30

SME/Agriculture branchesand 2 Off-shore Banking Units (OBU) in Bangladesh. The Principal place of business is

the Registered Office at Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.

2.3 Use of estimates and judgments

2.4 Reporting period

3.0 Significant accounting policies

3.1 Income tax expenses

3.2

3.3

4.0 Dividend payments

5.0 Events after the reporting period

Preparing the interim financial report requires Management to make judgements, estimates and assumptions

that affect the application of accounting policies and the reported amounts of assets and liabilities, income and

expense. Actual results may differ from these estimates.

In preparing this condensed consolidated and separate interim financial report, significant judgements made

by Management in applying the Companies'/Bank’s accounting policies and the key sources of estimation

uncertainty were the same as those that applied to the consolidated and separate financial statements as at

and for the year ended 31 December 2013.

These condensed consolidated and separate interim financial report of the Bank and its subsidiaries cover half

year from 1 January 2014 to 30 June 2014.

There were no material events subsequent to the interim reporting period that have not been reflected in the

financial statements for the interim period.

Except as described below, the accounting policies applied by the Bank/Companies in this condensed

consolidated and separate interim financial report are the same as those applied by the Bank/Companies in its

consolidated and separate financial statements as at and for the year ended 31 December 2013.

Provision for current tax for the half year ended 30 June 2014 has been estimated and recognized based on the

prevailing corporate tax rate. No deferred tax of the Bank has been calculated for this period.

The honorable shareholders of the Bank approved 10% stock and 8% cash dividend for the year 2013 in the

31st Annual General Meeting (AGM) of the Bank held on 31 May 2014. The dividend was paid during the 2nd

quarter of the year 2014.

Revaluation loss of Tk.398,749,430.00 for the half-year ended 30 June 2013 has been charged to profit and

loss as per the provisons of BAS 21. The related changes in earnings per share (EPS), non-controlling interest

(NCI) due to the afforsaid changes have also been made accordingly for the half-year ended 30 June 2013.

Prior period adjustments, if any, are recognized retrospectively as per BAS 8 "Accounting Policies, Changes in

Accounting Estimates and Errors" accordingly during the half-year ended 30 June 2013 an adjustment was

made regarding the treatment of exchange differences arise on revaluation of placement in Off-shore Banking

Unit (OBU). As per BAS 21 "The Effects of Changes in Foreign Exchange Rates", the exchange differences arise

on revaluation of placement in OBU should be charged to profit and loss. Earlier the exchnage differences was

shown as other liabilities. The adjustment was made retrospectively restating the opening balance of retained

earnings for the half-year ended 30 June 2013 (the earliest comparative year/period) and corrected in current

year.

Provision for investments and off-balance sheet exposures

Provision for Investment for the half year ended 30 June 2014 is made as per latest instruction of Bangladesh

Bank through BRPD Circular No.14 dated 23 September 2012, BRPD Circular No.19 dated 27 December 2012

and BRPD Circular No.05 dated 29 May 2013.

Prior period adjustments

6.0 Consolidated Fixed assets including premises, furniture and fixtures

15,738,858,683 14,816,765,447 484,054,114 1,577,570,331

- 6,497,108 333,964,187 648,979,987

Closing book value/writtendown value at the end of the period 15,888,948,610 15,738,858,683

7.0

30 June 2014

Taka

30 June 2013

Taka

13,546,600,000 11,090,700,000

3,371,600,000 3,935,900,000

9,037,800,000 6,054,350,000

1,137,200,000 1,100,450,000

469,790,000 99,020,000

13,076,810,000 10,991,680,000

3,713,270,000 3,012,440,000

301,400,000 (730,880,000)

3,179,410,000 2,910,120,000

232,460,000 78,070,000

- 755,130,000

16,790,080,000 14,004,120,000

3,673,000,000 3,205,020,000 11,747,420,000 8,865,450,000 1,369,660,000 1,178,520,000

- 755,130,000

8.0 Earnings per share (EPS)01 January to

30 June 2014

01 January to

30 June 2013

a) Attributable profit for the period 1,120,332,757 1,582,054,415 b) Weighted average number of ordinary share during the period 1,609,990,668 1,609,990,668

Basic earnings per share (EPS) (a ÷ b) 0.70 0.98

9.0 Consolidated earnings per share

Attributable profit for distribution to shareholders of IBBL for the period 974,062,426 1,537,858,791 Weighted average number of ordinary share during the period 1,609,990,668 1,609,990,668

Consolidated basic earnings per share 0.61 0.96

10.0 Consolidated segment reporting

The consolidated segment reporting has been shown in annnexure A.

Additional Provision

General Provision for Unclassified Investment including OBU

Provision for Classified Investment

Provision for Off-Balance Sheet items

B. Total deduction/adjustment from classified investment for the period

Previous year’s figures have been adjusted due to issuance of 146,362,788 bonus shares during the year 2014 against 10% Stock

Dividend of 2013 as per guidelines of BAS 33, "Earnings per share" . Diluted earnings per share is not applicable since there is no

possibility of dilution of shares during the period.

C. Available balance of provision (A-B)

D. Provision made during the period

General Provision for Unclassified Investment including OBU

Provision for Classified Investment



Provision for Classified InvestmentGeneral Provision for Unclassified Investment including OBU

E. Closing balance as on 30 June ( C+D)

Additional Provision

Add: Acquisition/ addition/ purchase during the periodLess: Sale/disposal/adjustment during the period

30 June 2014

Taka

31 Dec 2013

Taka

Opening balance (book/written down value)

Depreciation charged during the period

Provision for un-classified, classified investment and Off-balance sheet items including Off-shore Banking Units (OBU)

A. Opening balance as on 1 January

A. Segmental operating profit and loss

Particulars

Head Office

Controlled

Branchs

Dhaka Central

ZoneDhaka South Zone

Dhaka North

Zone Khulna Zone Comilla Zone Rajshahi Zone

Chittagong South

Zone Noakhali Zone Common Consolidated

Investment income 4,008,781,584 4,017,663,527 1,677,559,642 2,505,179,534 1,110,409,862 643,243,462 1,908,543,241 2,508,181,653 551,213,467 6,311,779,640 25,242,555,612

Profit paid on mudaraba deposits (858,671,235) (1,306,451,635) (1,121,891,542) (1,576,608,512) (1,000,561,352) (1,099,712,467) (741,482,643) (1,363,143,467) (1,085,064,351) (4,838,390,410) (14,991,977,614)

Profit received/(paid) on IB Genearl Account (1,655,113,845) (1,147,453,426) 478,421,358 563,081,642 634,102,438 1,267,971,682 (260,514,352) 125,264,261 1,236,701,659 (1,242,461,417) -

Net investment income 1,494,996,504 1,563,758,466 1,034,089,458 1,491,652,664 743,950,948 811,502,677 906,546,246 1,270,302,447 702,850,775 230,927,813 10,250,577,998

Commission, exchange & other income 593,274,261 457,183,429 180,634,361 279,447,462 173,819,746 64,354,265 128,689,743 170,913,526 69,771,852 1,248,942,481 3,367,031,126

Total operating income 2,088,270,765 2,020,941,895 1,214,723,819 1,771,100,126 917,770,694 875,856,942 1,035,235,989 1,441,215,973 772,622,627 1,479,870,294 13,617,609,124

Total operating expenses (239,936,282) (256,071,657) (285,341,537) (290,194,659) (298,372,787) (193,774,777) (213,453,077) (204,412,643) (172,763,294) (2,902,153,175) (5,056,473,888)

Operating Profit for the half year

ended 30 June 20141,848,334,483 1,764,870,238 929,382,282 1,480,905,467 619,397,907 682,082,165 821,782,912 1,236,803,330 599,859,333 (1,422,282,881) 8,561,135,236

Operating Profit for the half year

ended 30 June 20131,657,532,827 1,626,508,327 838,670,941 1,291,004,122 641,761,908 656,271,352 689,532,926 1,284,358,481 622,812,547 (1,043,743,299) 8,264,710,132

B. Segmental assets and liabilities

The necessary information regarding assets and liabilities of operating segments (except subsidiaries) are not separable and individually identifiable for this purpose. For this reason the assets and liabilities of the respective segments have

not been presented.


Consolidated segment reporting


(Amount in Taka)

There are 16 operating segments including subsidiaries as on 30 June 2014. Out of which only 9 are reportable as per BFRS 8 "Operating segments" and latest evaluation as at 31 December 2013. Hence other non-reportable segments

have been shown as under 'Common'.

Annexure - A

islami bank bangladesh limited and its subsidiaries ... yearly financial...(mohammed shahid ullah,...

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