mid-year review 2 0 1 7 - mobilink microfinance bank review.pdf · mid-year review 2 0 1 7....

www.mobilinkbank.com

Head Office Mobilink Microfinance Bank, Head Office,3-A/2, Kaghan Road, F-8 Markaz, Islamabad.

Celebra

ting

Success

Mid-Year Review 2 0 1 7

Highlights 2017

Visa Debit Card

Board of directors

Management Team

CEO’s Message

Vision, Mission & Values

Our Products

Branch Network

Business Units, Key Stats

Financial Statements

01

05

07

09

13

15

17

19

21

23

Contents

Active Borrowers

Avg. Outstanding Loan Size

No. of Depositors

No. of Locations

Number of Employees

No. of Branchless Banking Agents

Earnings Per Share

Return on Assets (ROA)

Return on Equity (ROE)

PAR

1.58%

2.6%

34.3%

0.15%

Highlights June 2017

103,415

73,424

174,189

59

812

71,731

The Power of ProgressMobilink

Microfinance Bank“A/A1”Credit RatingBy PACRA

page 2page 1

MobileAccount*786#PAY BILLS

SAVINGS &

INSURANCE

100

MOBILE LOAD

100

PAYMENTS

ATM CARD

SEND MONEY

Rs.

page 4page 3

Visa Debit Card

Visa Classic

QURAT-UL-AEIN

page 6page 5

Aamir Hafeez IbrahimDirector / Chairman

A highly motivated leader with the proven ability to develop organizations and drive revenues. Mr. Ibrahim possesses vast cross-functional experience that encompasses strategic marketing & sales, stakeholder management and corporate strategy. His track record includes successful leadership roles in Pakistan as well as Thailand, UK, UAE, Switzerland and USA across the telecom and automotive industry.

Niaz BrohiDirector

Presently the Chief Legal O�cer at Jazz and having previously worked with the Pakistan Telecom Authority, Mr. Brohi, has over 15 years of experience in the telecom sector specialising in regulatory and corporate a�airs, litigation and management, due diligence, mergers and acquisitions, risk assessment and advising the board of directors.

Salim Nooruddin JiwaniDirector

With over 15 years of experience in policy planning, �nancial management, institutional assessment and transformation of micro�nance institutions, Mr. Jiwani believes in poverty reduction and economic empowerment. He has previously served on the Board of Directors of the First Micro�nance Bank, Kashf Micro�nance Bank and Pakistan Micro�nance Network.

Muhammad Usman BajwaDirector

A corporate �nance professional with over 10 years of experience in treasury and �nancial management. Mr. Bajwa is a quali�ed Chartered Financial Analyst (CFA) with a proven record of managing extensive operations, large teams and various types of �nancing, debt and capital transactions.

Ghazanfar AzzamDirector

Ghazanfar Azzam is the President and CEO of Mobilink Micro�nance Bank Limited. He has vast experience and exceptional achievements to his credit in retail, commercial, consumer, SME and micro-banking segments.In a career spanning over 30 years, Ghazanfar has worked for some of the best banks in Pakistan including HBL, Union Bank, Prime Bank & Bank Alfalah in retail, commercial, consumer, SME Banking and Training & Development.In recognition of his contributions to HR Development in banking industry, he was awarded the prestigious Hubert Humphrey Fellowship by the United States Government for the year 2000-01 under Fulbright Program. He has attended advanced management development programs at LUMS, World Bank Institute in Washington DC and Harvard Business School.

Board of Directors:

page 8page 7

Management Team:

Ghazanfar AzzamPresident / CEO

Ghazanfar Azzam is the President and CEO of Mobilink Micro�nance Bank Limited. He has vast experience and exceptional achievements to his credit in retail, commercial, consumer, SME and micro-banking segments.In a career spanning over 30 years, Ghazanfar has worked for some of the best banks in Pakistan including HBL, Union Bank, Prime Bank & Bank Alfalah in retail, commercial, consumer, SME Banking and Training & Development.In recognition of his contributions to HR Development in banking industry, he was awarded the prestigious Hubert Humphrey Fellowship by the United States Government for the year 2000-01 under Fulbright Program. He has attended advanced seminars and management development programs at LUMS, World Bank Institute in Washington DC and Harvard Business School.

Muhammad Asim AnwarChief Operating Officer (COO)

A Seasoned Micro�nance Professional with more than 16 years of diversi�ed experience across key business segments including Business Banking, Bank Operations, Branchless Banking, Administration & Procurement. While managing larger workforce across various locations in the country, Asim has been deeply involved in mobilizing the �eld operations and achieving bank revenue targets through quality portfolios, diversi�ed business products and e�ective client management.

Shahzad Nazir KhanHead Risk Management

A Risk Management professional with diverse banking experience with International and Local Financial Institutions. Having extensive exposure to Business Banking as well as Risk Management in segments ranging from Corporate, SMEs to Micro�nance, Shahzad has an e�ective ability to understand, assess and respond to the ever changing business dynamics. Always promoting a team based and constant learning culture at all levels enables Shahzad to keenly drive the evolution of Micro�nance to Digital Banking while e�ectively safeguarding the interest of all stakeholders. Being a Change Management leader, Shahzad believes that e�ective communication and repeated transmission of MMBL’s core values not only strengthens our organization but also our people at an individual level.

Tayseer AliChief Financial Officer (CFO)

Tayseer is a Chartered Accountant from ICAEW and a Fellow Chartered Certi�ed Accountant. He joined the Bank in January 2017 and was previously working for Pak China Investment Co. as CFO. Tayseer has been associated with the �nancial sector since 2011.

page 10page 9

Management Team:

Naj-Mus-Sahar SabzwariHead Internal Audit

Sabzwari has about 20 years of extensive experience in the �eld of audit encompassing both commercial and micro�nance banking environment. He is a Fellow member of Institute of Chartered Accountants of Pakistan (ICAP) with added quali�cations of CISA, CISM and CIA. He is reporting to the Board Audit Committee.

Samiha Ali ZahidHead HR and Trainings

Samiha Ali Zahid brings with her 15 years of cross functional experience in OD, Sta�ng & HRM resulting in creating cohesive and high performing teams that contribute towards business goals. She holds a Masters’ Degree in Public Administration and is a Certi�ed Trainer. She has been recently Certi�ed by Korn Ferry for their product suite "Korn Ferry Leadership Architect".

Samiha has proven experience of collaborating with other Business functions to initiate programs aimed at developing and sustaining a positive employer image crucial to attract and retain talent. Her expertise include development of policy guidelines aiming to bring internal and external equity for employees. For the last 6 years she has addressed and implemented strategic plans for managing people experience, compensation structure, retention and succession plans.

page 12page 11

Syed Sajjad QayyumChief Compliance Officer

S. Sajjad Q. Ashraf is an experienced banker having worked in di�erent Instutitions in various capacities, including Leadership roles. Sajjad’ s experience covers key banking functions such as Credit, Operations, Business Banking, Compliance, risk management, Strategic Planning/Business Initiatives, and teams building. He is MBA, LLB(Pb.), D.A.I.B.P.

CEO’s MESSAGE

Ghazanfar Azzam

It gives me immense pleasure to report that the �rst half of 2017 has been a remarkable one that takes the performance of the bank to a new level. As they say, the facts speak louder than words, deposits registered a growth of 53% from Rs.10.3 billion to Rs.15.8 billion since Dec 31, 2016. Like-wise, the number of micro borrowers increased from 91,000 active borrowers to 103,415 and the micro loans portfolio grew from Rs.5.9 billion to Rs.7.5 billion registering an increase of Rs.1.6 billion thus showing 27% per growth. Thanks to our Branchless Banking partnership with JAZZ under the JAZZCASH umbrella, we continued to strengthen our industry leadership in the �rst half of 2017 and active mobile wallets grew from 8 million in Dec 2016 to 9.4 million as of June 30, 2017 registering an increase of 17.5%. Mobile or digital wallet is expected to play a major role in increasing small savings & improving access to �nance.

Growth in bottom-line(PAT) was even more impressive & truly exceptional from Rs.74.5 million in the �rst half of 2016 to Rs.229 in the 1st half of 2017 registering an increase of 205%. Shareholders’ funds / equity grew from Rs.1,230 million in December 2016 to Rs.1,459 as of June 30, 2017 signi�cantly strengthening capital base of the Bank. This is the fastest growth in pro�t-ability achieved by any micro�nance bank in Pakistan in just 5 years of operations.

Based on exciting operational performance of the Bank in the �rst half of 2017, I’m con�dent that overall performance of the Bank by end of the year will be truly exceptional. I would like to thank chairman and the board of directors of the Bank for their support and State Bank of Pakistan for continued guidance and encouragement which has enabled Mobilink Bank to become one of the best perform-ing banks in the micro banking sector of Pakistan.

Last but by no mean least, I thank my team and employees of the Bank for being highly motivated and committed whose untiring e�orts and contri-butions have made Mobilink Bank one of the best performing institutions in its category.

Pakistan’s Largest Digital Bank

page 14page 13

mobile walletsMMBL has 13.5 million

Mobilink Micro�nance Bank aims to provide �nancial solutions to the economically underprivileged for their economic freedom by using innovative ADC’s and promoting micro businesses through an ethical and passionate team, which strives to deliver beyond expectations.

Missi n

CorporateValues

Collaborative Truthful

Entrepreneurial

Customer Obsessed Innovative

Visi nMobilink Micro�nance Bank aims to alleviate poverty and promote �nancial inclusion by providing innovative solutions.

page 16page 15

Our Saving Options

Sahulat CurrentAccount

Bachat Account Mahana MunafaTerm Deposit

Mustaqbil TermDeposit

Assan savingAccount

Assan CurrentAccount

Solution forFinancial Empowerment

LSO loans Retailer’s Finance

Micro Enterprise Loan Khushhal Kisan Loan Fori Cash Loan

Livestock Loan Mobi House Tractor Loan Investment in Prosperity

Banca AssuranceWaseela e Zindagi

Banca TakafulMobi Takaful

page 18page 17

Branches59

BusinessAreas

08

06 07 08

08 08

07SahiwalFaisalabad

Rahim Yar KhanLayyah

06 09Pannu AqilPeshawar

MultanSargodha

Business Areas

Peshawar

Islamabad

Lahore

Karachi

Branches Network

page 20page 19

AreaName

S.No. Business UnitName

AreaName

S.No. Business UnitName

1234567891011121314151617181920212223242526272829

FaisalabadToba Tek SinghGojraJhangShorkotChiniotBhakkarChowk AzamChowk Sarwar ShaheedDarya KhanKoror Lal EssanKot AdduLayyahMankera DunyapurJalalpurKehror Pecca Lodhran MultanMuzafargarhShujabad DharakiHalaHyderabadKarachi-DHAPannu AqilRanipurSadiqabadLarkana

FaisalabadFaisalabadFaisalabadFaisalabadFaisalabadFaisalabadLayyahLayyahLayyahLayyahLayyahLayyahLayyahLayyahMultanMultanMultanMultanMultanMultanMultanPannu AqilPannu AqilPannu AqilPannu AqilPannu AqilPannu AqilPannu AqilPannu Aqil

303132333435363738394041424344454647484950515253545556575859

QambarAbbotabadHaripurIslamabadMardanMuzafarabadPeshawarSwabiAhmedpurChishtian Fort AbbasHaroonabadHasilpurKhanpurLiaquatpurRahim Yar KhanArif WalaBurewala LahoreMian Chanu PakpattanSahiwalBasirpurMinchinabadBhalwal Chota SahiwalKhushabMandi Baha UddinSargodhaSialkot

Pannu AqilPeshawarPeshawarPeshawarPeshawarPeshawarPeshawarPeshawarRahim Yar KhanRahim Yar KhanRahim Yar KhanRahim Yar KhanRahim Yar KhanRahim Yar KhanRahim Yar KhanRahim Yar KhanSahiwalSahiwalSahiwalSahiwalSahiwalSahiwalSahiwalSahiwalSargodhaSargodhaSargodhaSargodhaSargodhaSargodha

Business Units

Key Stats

Branches/Booths

2012

2013

2014 2015

20162017 20

1220

13

2014 2015

20162017

2012

2013

2014 2015

20162017 20

1220

13

2014 2015

20162017

2012

2013

2014 2015

20162017

BranchLess banking agents

Employees

10

36

41 41

51

59 -

26,550

49,573 58,568

69,780

71,731

346

130

475 620

751

812

Active Borrowers

29

11,402

4,407

27,225

91,747

103,415

Depositors

6,850

66,693

311,920

174,189

3,185,600

8,121,382

page 22page 21

page 23

MOBILINK MICROFINANCE BANK LIMITED(Formerly Waseela Microfinance Bank Limited)

Condensed Interim Statement Of Financial Position (Un-Audited) AS AT JUNE 30, 2017

30th June 2017 31st Dec 2016ASSETS Note (Rupees) (Rupees)

Cash and Balances with SBP and NBP 1 1,630,653,303 747,930,012

Balances with other Banks/NBFIs/MFBs 2 3,824,378,112 4,742,891,348

Investments – net of provisions 6,957,133,947 1,495,053,230 3

7,458,671,842 5,858,824,209 Advances – net of provisions 4

396,937,245 388,447,521 Operating �xed assets 5 1,351,822,480 853,361,423 Other assets 6

101,837,158 147,349,687 Deferred tax asset 7

Total Assets

14,233,857,430

LIABILITIES

Deposits and other accounts 8 15,783,585,361 10,306,362,467

4,478,691,747 2,697,001,907 20,262,277,108

Other liabilities 9

Total Liabilities 13,003,364,374

Net assets 1,459,156,979

1,230,493,056

REPRESENTED BY:

Share Capital 10 1,451,753,600

1,451,753,600

Statutory reserves 91,884,351

46,151,566

11,537,892

Depositor's protection fund 22,971,088

--

Accumulated losses (107,452,060)

(278,950,002)

1,459,156,979

1,230,493,056

Surplus on revaluation of assets

Deferred grants --

Total Capital 1,459,156,979

1,230,493,056

MEMORANDUM / OFF-BALANCE SHEET ITEMS 11

The annexed notes from 1 to 15 form an integral part of these �nancial statements.


CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (Un-Audited)FOR THE HALF YEAR ENDED JUNE 30, 2017

30th June 2017 30th June 2016Note (Rupees) (Rupees)

Mark-up/Return/Interest earned 12 1,112,340,386 416,917,579 Mark-up/Return/Interest expensed 13 (235,670,076) (71,573,833)

Net Mark-up/ Interest Income 876,670,310 345,343,746

Provision against non-performing loans and advances (58,500,902)(58,500,902)

(21,090,790)(21,090,790)

Net Mark-up/ Interest Income after provisions 818,169,408

324,252,956

NON MARK-UP/ NON INTEREST INCOMEFee, Commission and Brokerage Income - net 14 347,679,434

336,602,844

505,125 2,639,058

Other Income 15

Total non-markup/non interest Income 348,184,559

339,241,902

1,166,353,967

663,494,858

NON MARK-UP/ NON INTEREST EXPENSESAdministrative expenses (820,436,609)

- -

Other charges(820,476,609) 345,877,358

345,877,358

(40,000)

Total non-markup/non interest expenses

Extra ordinary/unusual items

PROFIT / (LOSS) BEFORE TAXATION

Taxation - Current (71,700,906)

Taxation

- Prior years ---

-

-

Taxation

- Deferred (45,512,529)(117,213,435)

228,663,923

(278,950,002)

74,550,834

PROFIT AFTER TAXATION

(50,286,079)

(377,467,540)

(452,018,374)

Accumulated loss brought forward

Loss available for appropriation

APPROPRIATIONS:

Transfer To:Statutory reserve (45,732,785)

-

--

--

--

Capital reserve -

Contribution to depositors protection fund (11,433,196)

Revenue reserve

Dividend-

Others

--

(57,165,981)

Accumulated loss carried forward (107,452,060) (377,467,540)

Pro�t / (Loss) per share (Rupee) 1.58 0.51


(587,615,504)

(588,944,024) 74,550,834

74,550,834

(1,328,520)

Unaudited Audited

21,721,434,087


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED JUNE 30, 2017

30th June 2017 30th June 2016Note (Rupees) (Rupees)

Pro�t /(Loss) after taxation 228,663,923 74,550,833

Other comprehensive income/ (loss) - -

-

-

-

Comprehensive income/ (loss) transferred to equity 228,663,923 74,550,833

Components of comprehensive income not re�ected in equity

Surplus / (de�cit) on revaluation of investments 3.2 -

Related tax impact -

-

228,663,923 74,550,833



CONDENSED INTERIM CASH FLOW STATEMENT FOR THE YEAR ENDED JUNE 30, 2017

CASH FLOWS FROM OPERATING ACTIVITIESPro�t / (Loss) before taxationLess: Dividend income

Adjustments for non-cash charges

DepreciationAmortizationProvision for gratuityProvision against non-performing advancesProvision for diminution in the value of investments/ other assets(Gain) /loss on sale of �xed assets- netAssets transferred to related party

(Increase)/ decrease in operating assets Lending to �nancial institutionsAdvancesOther assets (excluding advance taxation)

Increase/ (decrease) in operating liabilities Bills payableBorrowings from �nancial institutionsDepositsOther liabilities (excluding current taxation)

Gratuity paidPayments against provisions held against o�-balance sheet obligationsIncome tax paid

Net cash in�ow from operating activitiesCASH FLOWS FROM INVESTING ACTIVITIES

Net investment in available-for-sale securitiesNet investment in held-to-maturity securitiesDividend incomeInvestments in operating �xed assetsSale proceeds of property and equipment disposed–o�

Net cash (out�ow) / in�ow from investing activitiesCASH FLOWS FROM FINANCING ACTIVITIES

Receipts/ payments of Sub-ordinated loanReceipts/ payments of lease obligationsIssue of share capital

Dividend paidNet cash �ow from �nancing activitiesIncrease / (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year


30th June 2017 31st Dec 2016Note (Rupees) (Rupees)

345,877,358 334,834,719 - -

345,877,358 334,834,719

54,849,202 88,332,296 20,639,830 32,897,932

2,605,219 5,024,139 58,500,902 67,610,733

- -

-

(505,125) (2,462,889)

-

136,090,028 191,402,211

481,967,386 526,236,930

- - (1,658,348,535) (4,583,877,797)

(422,550,161) (594,577,185)

(2,080,898,696) (5,178,454,982)

16,468,317 28,551,824 - -

5,477,222,894 7,109,051,030 1,764,255,595 1,972,053,060

7,257,946,806 9,109,655,914

5,659,015,496 4,457,437,862 (1,639,291) (1,536,462)

- - (147,611,802) (45,617,739)

5,509,764,403 4,410,283,661

(5,462,080,717) (1,370,430,583) - - - -

(83,978,788) (221,888,203) 505,157 3,908,181

(5,545,554,348) (1,588,410,605)

- - - - - -

- - - -

(35,789,945) 2,821,873,056

5,490,821,360 2,668,948,304

5,455,031,415 5,490,821,360

page 26page 25

(Un-Audited)

(Un-Audited)

(Un-Audited) (Audited)

(Audited)(Un-Audited)

(Un-Audited)



30th June 2017 31st Dec 2016(Rupees) (Rupees)

1. CASH AND BALANCES WITH SBP AND NBP

Cash in hand 350,343,788 249,860,266 Balance with State Bank of Pakistan (SBP) - note 1.1 1,233,527,161 466,316,546 Balance with National Bank of Pakistan (NBP) 46,782,354 31,753,200

1,630,653,303 747,930,012

1.1

30th June 2017 31st Dec 2016

2. BALANCES WITH OTHER BANKS/NBFIs/MFBs

(Rupees) (Rupees)

In Pakistan

- on current accounts - Local currency - - - on saving accounts - Local currency - note 2.1 1,324,378,112 1,442,891,348 - on term deposits accounts - Local currency - note 2.2 2,500,000,000 3,300,000,000

3,824,378,112 4,742,891,348 - on current accounts - Foreign currency - note 2.3 - -

3,824,378,112 4,742,891,348

2.1

2.2

2.3

30th June 2017 31st Dec 2016

3. INVESTMENTS - net of provisions

(Rupees) (Rupees)

Federal Government securities - available for sale

Pakistan Investment Bonds -

1,495,053,230

Market treasury bill - note 3.1 6,957,133,947

-

--

6,957,133,947 1,495,053,230

3.1

30th June 2017 31st Dec 2016(Rupees) (Rupees)

3.2 Particulars of surplus / (de�cit) on revaluation of available for sale investments:

Balance at the beginning 649,319 649,319

Transferred (from) / to revaluation of assets (649,319)

Balance at the end --

-

-

Surplus / (de�cit) on revaluation of available for sale investments - note 3.2

These carry markup at 5.96% and 5.99% per annum maturing on July 20, 2017 and August 31, 2017 respectively.

This includes balance held with SBP in a current account to comply with the requirement of maintaining minimum balanceequivalent to 5% (2016: 5%) of the Bank’s demand deposits and time deposits with tenor of less than one year.

These carry markup ranging from 4% to 6.5% (2016: 4% to 6.5%) per annum.

These carry markup ranging from 6% to 6.25% (2016: 6% to 6.25%) per annum.

This account is being maintained with United Bank Limited for the purpose of Home Remittance under Pakistan remittanceinitiative as approved by the SBP.

page 28page 27

(Un-

Aud

ited

)

MO

BILI

NK

MIC

ROFI

NA

NCE

BA

NK

LIM

ITED

(Fo

rmer

ly W

asee

la M

icro

fina

nce

Bank

Lim

ited

)

CON

DEN

SED

INTE

RIM

STA

TEM

ENT

OF

CHA

NG

ES IN

EQ

UIT

Y FO

R TH

E YE

AR

END

ED JU

NE

30,

20

17

Sha

re C

apita

l C

apita

l Re

serv

e S

tatu

tory

Res

erve

R

even

ue

Rese

rve

Dep

osito

rs

Prot

ectio

n Fu

nd

Adv

ance

aga

inst

is

sue

of sh

ares

A

ccum

ulat

ed lo

sses

T

otal

(Rup

ees)

(Rup

ees)

(Rup

ees)

(Rup

ees)

(Rup

ees)

(Rup

ees)

(Rup

ees)

(Rup

ees)

Bala

nce

at Ja

nuar

y 01

, 201

61,

451,

753,

600

-

-

-

-

-

(452

,018

,374

)

999,

735,

226

Loss

for t

he y

ear

Oth

er c

ompr

ehen

sive

inco

me/

(los

s)-

-

-

-

-

-

230,

757,

830

230,

757,

830

Tran

sfer

s to

Sta

tuto

ry re

serv

es-

-

-

-

-

-

-

Oth

er a

ppro

pria

tions

-

-

46,1

51,5

66

46

,151

,566

-

-

-

(46,

151,

566)

(11,

537,

892)

Issu

e of

sha

re c

apita

l

-

-

-

-

-

-

Bala

nce

at D

ecem

ber 3

1, 2

016

1,45

1,75

3,60

0

-

-

-

(278

,950

,002

)

1,23

0,49

3,05

6

Pro�

t for

the

year

-

-

-

-

-

-

22

8,66

3,92

3

228,

663,

923

Oth

er c

ompr

ehen

sive

inco

me/

(los

s)-

-

-

-

-

- -

Tran

sfer

s to

Sta

tuto

ry re

serv

es-

-

45

,732

,785

-

-

-

(45,

732,

785)

Tran

sfer

to D

epos

itors

pro

tect

ion

fund

Tran

sfer

to D

epos

itors

pro

tect

ion

fund

-

-

-

-

11,4

33,1

96

11,5

37,8

92

11,5

37,8

92

-

(1

1,43

3,19

6)

Oth

er a

ppro

pria

tions

-

-

-

-

-

-

-

Issu

e of

sha

re c

apita

l-

-

-

-

-

- -

Bala

nce

at Ju

ne 3

0, 2

017

1,45

1,75

3,60

0

-

91,8

84,3

51

-

22,9

71,0

88

-

(107

,452

,060

)

1,45

9,15

6,97

9

The

anne

xed

note

s fr

om 1

to 1

5 fo

rm a

n in

tegr

al p

art o

f the

se �

nanc

ial s

tate

men

ts.

Unaudited

Unaudited

Unaudited

Audited

Audited

Audited

4. ADVANCES - net of provisions

Loans outstanding

Amount outstanding

Loans outstanding

Amount outstanding

(Number) (Rupees) (Number) (Rupees)Micro credit -Secured against gold 12,132 1,012,562,762 12,069 955,190,655

-Unsecured 91,283 6,579,747,930 79,678 4,978,771,502

103,415 7,592,310,692 91,747 5,933,962,157

Less: Provision held

Speci�c provision 218 1,907,058 41 463,325

General provision - note 4.1 91,283 131,731,792 79,678 74,674,623

91,501 133,638,850 79,719 75,137,948

Advances - net of provisions

This represents general provision maintained against unsecured microcredit advances net of speci�c provision at the rate of 2%(2016:1.5%) against the requirement of 1% speci�ed under the Prudential Regulations issued by the State Bank of Pakistan.

7,458,671,842 5,858,824,209

4.1

4.2 Particulars of non-performing advances

Amount outstanding

Provisionrequired

Provisionheld

Amount outstanding

Provision required

Provision held

OAEM 6,297,969 - - 556,040

512,070

233,4062,323,253

1,021,737

188,735

233,406463,325

41,184

188,735

233,406463,325

41,184

- -

Sub-standard 2,467,068 590,993

Doubtful 2,480,051 969,226

Loss 346,840 346,840

11,591,928 1,907,058

590,993

969,226

346,8401,907,058

4.3 Particulars of provision against non-performing advances

Speci�c General Total Speci�c General Total

Opening balance 75,137,948 7,758,245 7,758,245

Charge for the year 60,322,720 694,355-

66,916,378 67,610,733

Amounts written o� (1,821,818) -

-

Reversals - -

(231,030)

--

(231,030)

Closing balance

3,265,551

(1,821,818)

1,907,058

463,325

57,057,169

-

-131,731,792

74,674,623

133,638,850 463,325 74,674,623 75,137,948

-----------------------Rupees------------------------- ---------------------Rupees-----------------------

Category of classi�cation

-----------------------Rupees------------------------- -----------------------Rupees-------------------------

page 30page 29

30th June 2017

30th June 2017

30th June 2017

31st Dec 2016

31st Dec 2016

31st Dec 2016

Una

udit

edA

udit

ed

5.O

PERA

TIN

G F

IXED

ASS

ETS

(Rup

ees)

(Rup

ees)

Capi

tal W

ork

in p

rogr

ess

- not

e 5.

125

,029

,250

4,

915,

860

Prop

erty

and

equ

ipm

ent

- not

e 5.

226

6,36

9,21

6

27

1,02

0,28

8

Inta

ngib

le a

sset

s - n

ote

5.3

105,

538,

779

112,

511,

373

396,

937,

245

388,

447,

521

5.1

Capi

tal W

ork

in p

rogr

ess

Civi

l wor

ks25

,029

,250

4,91

5,86

0

Equi

pmen

ts-

-

Adva

nces

to s

uppl

iers

and

con

trac

tors

-

-

Oth

ers

-

-

25,0

29,2

50

4,

915,

860

30th

June

201

731

st D

ec 2

016

Net

boo

k va

lue

At

Janu

ary

01

Char

ge fo

r th

e ye

arA

djus

tmen

ts

/tra

nsfe

rsD

ispo

sals

/ w

rite

o�

s A

t

June

30

At

June

30

Rate

per

ann

um

%ag

e

30,3

11,8

09

7,32

7,76

1

-

37,6

39,5

70

38

,815

,838

20%

147,

693,

161

35

,516

,329

-

(2,2

49,7

68)

18

0,95

9,72

2

181,

760,

605

10

-33%

10,0

05,6

33

3,

067,

189

-

(1,6

82,4

02)

11

,390

,420

15,4

75,5

07

25

%

52,2

42,6

29

8,

937,

923

(5,3

94)

61,1

80,5

53

30,3

17,2

66

25

%

240,

253,

232

54

,849

,202

(5,3

94)

(3

,932

,170

)

29

1,17

0,26

5

26

6,36

9,21

6

18,6

44,0

56

12

,869

,074

-- -

(1,2

01,3

20)

30

,311

,810

38,4

33,6

76

20

%

97,1

49,0

94

52,7

13,2

69

(2

,169

,202

)

147,

693,

161

18

8,80

0,53

4

10-3

3%

17,9

24,7

11

4,95

1,90

4

-

(12,

870,

982)

10,0

05,6

33

14,1

29,8

50

25%

34,4

69,0

06

17,7

98,0

49

(19,

032)

52

,242

,629

29,6

56,2

2825

%

168,

186,

867

88

,332

,296

(16,

260,

536)

24

0,25

3,23

3

271,

020,

288

Dep

rec i

atio

n

----

----

----

----

----

----

----

----

----

----

----

----

----

-- R

upee

s ---

----

----

----

----

----

----

----

----

----

----

----

----

----

-

5.2

Prop

erty

and

equ

ipm

ent

At

Janu

ary

01

Add

ition

sA

djus

tmen

ts

/tra

nsfe

rsD

ispo

sals

/ w

rite

o�

sA

t

June

31

30th

June

201

7

Furn

iture

and

�xt

ure

68,7

45,4

86

23,4

54,3

78

76

,455

,408

Elec

tric

al, o

�ce

and

com

pute

r equ

ipm

ent

336,

493,

695

12,8

14,4

55-

(2,2

49,8

00)

362,

720,

327

Vehi

cles

24,1

35,4

834,

412,

848

-(1

,682

,404

)26

,865

,927

Leas

ehol

d im

prov

emen

ts81

,898

,857

9,59

8,96

2

(82,

479)

(82,

479)

91,4

97,8

19

511,

273,

521

50,2

80,6

43

(3,9

32,2

04)

557,

539,

481

31st

Dec

201

6

Furn

iture

and

�xt

ure

55,7

36,4

51

15,2

52,6

34(2

,243

,599

)68

,745

,486

Elec

tric

al, o

�ce

and

com

pute

r equ

ipm

ent

216,

147,

977

122,

751,

362

(2,4

05,6

44)

336,

493,

695

Vehi

cles

23,1

38,7

7414

,028

,604

---

(13,

031,

895)

24,1

35,4

83

Leas

ehol

d im

prov

emen

ts68

,859

,833

13,1

80,8

34(2

4,69

0)81

,898

,857

363,

883,

035

165,

213,

434

(117

,120

)

(117

,120

)(1

7,70

5,82

8)51

1,27

3,52

1

Cost

----

----

----

----

----

----

----

----

----

----

--- R

upee

s ---

----

----

----

----

----

----

----

----

----

----

--

Unaudited Audited

5.3

Inta

ngib

le a

sset

s

Net

boo

k va

lue

At

Janu

ary

01

Add

ition

sD

ispo

sals

/ w

rite

o�

sA

t Ju

ne 3

0A

t Ja

nuar

y 01

Ch

arge

for

the

year

Dis

posa

ls/

wri

te o

�s

At

June

30

June

30

At

Rate

per

an

num

%ag

e

30th

June

201

7

Soft

war

e Li

cens

e18

2,84

0,81

7

13

,667

,234

13,6

67,2

34

-

19

6,50

8,05

1

196,

508,

051

70,3

29,4

44

70,3

29,4

44

20,6

39,8

30

20,6

39,8

30

-

90,9

69,2

72

90,9

69,2

72

10

5,53

8,77

9

105,

538,

779

10-3

3%

182,

840,

817

-

32,8

97,9

32

32,8

97,9

32

-

70,3

29,4

44

70,3

29,4

44

112,

511,

373

112,

511,

373

31st

Dec

201

6

Soft

war

e Li

cens

e12

8,68

6,70

2

128,

686,

702

54,1

54,1

15

54,1

54,1

15

-

182,

840,

817

182,

840,

817

37

,431

,512

37,4

31,5

12

-

10-3

3%

-

-

5.3.

1Th

is in

clud

es T

emen

os -

24 (R

-10)

sof

twar

e w

ith c

arry

ing

valu

e of

Rs.

28,6

13,6

35 (2

016:

31,6

11,2

07) a

nd re

mai

ning

am

ortiz

atio

n pe

riod

of 4

.9 (2

016:

4.9)

yea

rs.

Cost

Am

ortiz

atio

n

----

----

----

----

----

----

----

----

----

--- R

upee

s ---

----

----

----

----

----

----

---

----

----

----

----

----

----

----

----

----

----

----

Rup

ees -

----

----

----

----

----

----

----

----

----

----

----

--

30th June 2017 31st Dec 2016

(Rupees) (Rupees)

937,878,056 652,412,703

115,305,975 57,985,540

106,253,728 30,342,832

131,930 105,935

16,038,913 9,002,299

124,226,263 74,389,688

51,987,615 29,122,426

1,351,822,480 853,361,423

30,342,832 41,646,995

147,611,802

(71,700,906)

106,253,728

45,617,739

(56,921,902)

30,342,832

-

131,930

131,930

-

105,935

105,935

40,091,655 22,541,384

- -

-

-

75,470,589

117,904

2,864,304 3,154,083

56,921,90261,718,277

104,964,015 157,916,083

(3,126,857) (10,566,396)

101,837,158

101,837,158

147,349,687

147,349,687

- -

6. OTHER ASSETS

Income / Markup accrued

Advances, deposits and prepayments

Advance taxation - net - note 6.1

Receivable from related parties - note 6.2

Inventory/ printed stationary

Receivable against Insurance premium - note 6.3Others

6.1 Advance taxation - net - note 6.1

Opening balance

Tax paid

Provision for taxation

Closing balance

6.2 Receivable from related parties

Pakistan Mobile Communication Limited

Business Communication System (private) Limited

6.3

7. DEFERRED TAX ASSET

Deferred tax asset arising on account of deductible temporary di�erences on:

Provision against non-performing advances

Precommencement expenditure

Unused tax credit

Deferred tax liability arising on account of taxable temporary di�erences on:

Operating �xed assets

Surplus on revaluation of available for sale investments

7 .1

Unused tax losses

Provision for gratuity

Alternate Corporate Tax

This represents the amount receivable from SBP in respect of insurance premium paid by the Bank for livestock and crop loans under AC&MFD Circular No. 1 of 2013 dated November 1, 2013.

Deferred tax asset has been recognised based on the premise that su�cient taxable pro�ts will be available in future years against which unused tax losses amounting to Rs.251.57 million (2015: Rs. 641.06 million) can be utilised.

page 32page 31

Unaudited Unaudited Audited

Unaudited Audited

Audited

8. DEPOSITS AND OTHER ACCOUNTS

Time Liabilities:

Term deposits

Demand Liabilities:

Savings deposits

Current deposits

Branchless deposits

8.1 Particulars of deposits by ownership

Individual depositors

Institutional depositors

a) Corporations/�rms etc.

b) Banks & �nancial institutions

Retailers

Franchisees

Customer care centers

9. Other Liabilities

Mark-up/ Interest payableAccrued expenses

Payable to related parties - note 9.1

Taxes and levies withheld

Payable to suppliers

Bills collected for settlement through NADRA

Uncollected remittances

Bills payable

Provision for gratuity - note 14.2

Others

9.1 Payable to related parties

PMCL

Global Telecom Holding S.A.E - note 9.1.1

LinkdotNet Telecom Limited

Oracap - GTH

30 June 17 30 June 17 31 Dec 16

30 June 17 31 Dec 16

31 Dec 16

Note (Number) (Rupees) (Number) (Rupees)

1,775 3,051,497,825 1,265 2,344,357,034

39,715 4,168,197,566 37,808

2,526,149,947

132,636 2,408,372,567 98,549 1,317,006,773

12,415,614 6,155,517,403 7,983,760 4,118,848,713

12,587,965 12,732,087,536 8,120,117 7,962,005,433

12,589,740 15,783,585,361 8,121,382 10,306,362,467

12,466,990 9,950,994,818 8,050,538 5,686,390,251

50,678 1,031 3,120,572,279 1,834,000,242

284 1,638,043,671 33 1,941,623,675

71,006 939,295,754 69,330 684,321,037

761 130,500,120 429 160,025,166

21 4,178,718 21 2,096

12,589,740 15,783,585,361 8,121,382 10,306,362,467

(Rupees) (Rupees)

53,241,065

85,538,644

1,316,600,081

83,654,788

63,492,751

327,679,666

259,244,032

62,307,554

9,547,681

435,695,645 2,697,001,907

89,337,749 1,288,580,091

25,537,867

1,288,580,091 --

2,482,123 2,482,123

1,380,399,963 1,316,600,081

47,059,000

185,196,285

1,380,399,963

238,955,579

696,207,388

327,679,666

273,022,098

78,775,871

10,513,609

1,240,882,288 4,478,691,747

This represents the amount received from PMCL, associated company under a tripartite arrangement with PMCL and Global Telecom Holding S.A.E., the holding company.

9.1.1

9.2 Provision for gratuity

Pro�t and Loss Notes.

Opening balance

Charge for the year

Payment during the year

Closing balance

10. SHARE CAPITAL

Authorized Capital

June 2017 Dec 2016

Numbers Numbers

150,000,000 150,000,000 Ordinary shares of Rs. 10 each.

Issued, subscribed and paid-up capital

Ordinary shares145,175,360 145,175,360 Fully paid in cash of Rs. 10 each.

9,547,681 6,060,004

2,605,219 5,024,139

(1,639,291) (1,536,462)

10,513,609 9,547,681

1,500,000,000 1,500,000,000

1,451,753,600 1,451,753,600

10.1

11. MEMORANDUM / OFF-BALANCE SHEET ITEMS

11.1 Contingencies

There are no contingencies at 30th June 17 (2016: Nil).

11.2 Commitments:

Commitments against contracts

Global Telecom Holding S.A.E. is the holding company controlling 145,175,355 i.e. 99.99% shares (2016: 99.99%) of the Bank.

- -

page 34page 33

12.

- Advances

- Government securities

- On Deposit accounts/placements with other banks/�nancial institution

MARK-UP/RETURN/INTEREST EARNED

Interest / Mark-up on;

30th June 2017(Rupees)

912,719,022

98,145,717

101,475,647

1,112,340,386


316,880,029

23,880,357

76,157,905

416,917,579

Branch Names And Contacts

Faisalabad

FaisalabadP-7, Santpura Main Allama Iqbal Road Opposite GC University Faisalabad041-2620622

Toba Tek SinghShop #240-241,Mall GoDown Road,Grain Market,Toba Tek Singh046-2510721

GojraShop no.1 Azeem plaza, Near Sabzi Mandi, Borh Wali Gali, Quaid e azam road, Tehsil Gojra District Toba Tek Singh046-3511461

JhangBuilding No.93, Near Girls College Chowk, Gojra Road, Jhang Saddar047-7650148-9

ShorkotNear Ghani Petrol Pump Lari Ada Jhang Road Shorkot City047-5310178

ChiniotNear NADRA o�ce Faisal Abad Road Chiniot047-6330181

Layyah

BhakkarWard # 12/6 near Nasir hospital Mandi Town Bhakkar0453-514014

Chowk AzamMM Fateh Pur Road, Sial Colony, Chowk Azzam0606-381141

Chowk Sarwar ShaheedOpposit Ghala Mandi Gate No 2 Near ZTBL main Multan Road Chowk Sarwar Shaheed. District Muzafargarh066-2210621

Darya KhanMain Bhakkar Road, Opposite GPO, Darya Khan0453-252314

Koror Lal EssanFateh Pur road opposite ZTBL Karor Lal Essan0606-811555

Kot AdduShop No. 476 Ward No.11 Main GT Road Kot Adu Distt Muza�ar Garh0662-243591

LayyahPlot # 134,Mohallah Qadirahabad,near Moti mosque,Chobarah Road Layyah0606-410141

MankeraShop no. 4 Bhatti markit, Opposite UBL-Jhang road, Mankera045-3410101

Multan

DunyapurShop # 6-9, Faizan E Madina Road, Kazmi Chowk, Dunyapur0608-304342

JalalpurArain Plaza,Opposite Allied Bank Permat Road, Jalalpur Pirwala0614-420197

Kehror PeccaDunya Pur Road, Kehror Pacca0608-340223

LodhranSaad Plaza, Shop # 1-3, Near Choti Nagar, Main Bahalwalpur Road, Lodhran0608-361104

Multan3626 AB, Azmat wasti road, Chowk Sadu Hassam, Multan061-4588868

MuzafargarhJhang Road Chungi # 02, Near wapda o�ce Muzafargarh0662-422472

ShujabadOpposite Munawarah Masjid, Jalalpur Road, Shujaabad061-4397599

13. MARK-UP/RETURN/INTEREST EXPENSED

14. FEE, COMMISSION AND BROKERAGE INCOME - NET

Income from branchless banking - note 14.1

Loan processing fee

14.1 Income from branchless

Branchless banking income - note 14.2

Commission to retailer / franchisee

Commission to related party

14.2

15. OTHER INCOME

(Rupees)

Gain on disposal of �xed assets 505,125

On deposits

Others

30th June 2017

30th June 2017 30th June 2016


235,670,076

244,863,963

85,644,145

17,171,326347,679,434

2,155,980,670(1,402,228,818)

(508,887,889)

244,863,963

(Rupees)

71,573,833

256,205,540

64,359,770

16,037,534 336,602,844

1,775,651,708 (991,662,224)

(527,783,944)

256,205,540

(Rupees)

2,639,058

This represents the income from branchless banking operations (Jazz cash formerly Mobicash) carried out by the Bank together with Pakistan Mobile Communication Limited (PMCL) through agency agreement under SBP Branchless Banking Regulations. As per the agreement, Income from Mobicash (Net of Agents commission) is shared between the Bank and PMCL in the ratio of 30:70 respectively.

page 36page 35

page 37

Pannu Aqil

DharakiProperty No. 446, Near EFU o�ce , Main Road, Deharki0723644402

HalaDargah Road, Opposite HBL, New Hala, District Matiari223331124

HyderabadPlot # D-1 & D4, Mobilink House, Main Auto Bhan Road, Near Standard Chartered Bank, Latifabad, Hyderabad022-3411038

Karachi-DHA40D, 24th Commercial Street, Phase II Extension, DHA, Karachi021-34328516

Pannu AqilPlot No. 435, Baiji road, Pannu Akil District, Sukkur.071-5692437

RanipurShop No. 1 & 2, Behind Al-Shifa Medical Center, Near Askari Bank, Main National Highway, Ranipur.0243-730372

SadiqabadNishter chowk fanous, cinema road, near KPL road, Sadiqabad0685-705333

LarkanaShaikh Muhallah, survey no. 72 old anaj Mandi, near Haji Dhani Bux oil mill, Bank Square Road Larkana074-4040133

QambarOld bus Stand, Mian Mangan Main Road Qamber074-4211442

Peshawar

AbbotabadGround Floor, Shalimar Motors, Mansehra Road, Abbotabad0992-384488

HaripurShop#7-8,Naeem Khan Market,GT Road,opposite Total Pump,Haripur0995-627725

IslamabadKaghan Road F-8 Markaz Islamabad051-2817101 ext 1225

MardanNaeem Khan Market College Chowk,Mardan.093-7875123

MuzafarabadNeelum Road Near 4 Field Masjid Lower Plate Muza�arabad05822-449114-5

PeshawarTilla Mansion, Near Wapda Labour colony, Krishan pura, Main GT rd, Peshawer.091-2612188

SwabiShop #1, Fazal Dad Khan Market, Mardan Road, Near Meezan Bank, Swabi0938-222325

Rahim Yar Khan

AhmedpurShop # 2/2, Opposite MAPCO O�ce, Kuchehri Road, Ahmedpur East.062-2271443

ChishtianPlot # 68-D,Gulistan Plaza Gurdwara Road,Main Bazar Chishtian063-2500177

Fort AbbasGrain Market, Along with Meezan bank , Fort Abbas063-2510120

HaroonabadJamia Masjid Road, Near UBL bank, Haroonabad063-2250041

HasilpurMain Bazar, Baldia Road, Near Bank of Punjab, Hasilpur062-2441094

KhanpurShop # 1 & 2, Quaid-e-Millat Road, Khanpur, District Rahim Yar Khan068-5577072

LiaquatpurPlot #7,Ghalla Mandi Road,Liaqatpur0685-693442

Rahim Yar KhanBin Hakim Plaza Shahi Road, Opposite Police Station City A Division, Behind Zam Zam Plaza, Rahim Yar Khan0685-878071

Sahiwal

Arif WalaMain Muhammadi Road, Adjacent NRSP Bank, Arifwala045-7830510

BurewalaAl Ramay industeries, Near Khushhali bank limited, Multan road Burewala067-3770828

Lahore37-A,XX, Commercial Area, Phase 3, Khyaban-e-Iqbal, DHA, Lahore042-37186466

Mian ChanuBatalvi Plaza, Near Ghallani Plaza, Shaheed Road, Mian Channu.065-2660287

PakpattanEx-Punjab Bank Building, Adjacent Telenor Franchise, College Road, Pakpattan.0457-372172

SahiwalO�ce No G-3 Ground Floor,Plot no 515-B,Saeed center,opposite DPO o�ce,Farid Road,Sahiwal040-4222219

BasirpurHaveli road opposite Girls degree college Basirpur.0444-771010

MinchinabadPlot No. 150 Circular Road Minchanabad0632-750244

Sargodha

BhalwalKhewat # 100, Khattoni # 103, Liaquat Shaheed road Bhalwal District Sargodha.048-6643406

Chota SahiwalVinni House, Jhang Sargodha Road, Tehsil Chota Sahiwal, District Sargodha048-6786157

KhushabShop No. 198, block No. 14, Main Bazar Jouharabad, District Khushab.0454-721491

Mandi Baha UddinAli Plaza, Cinema Road, Near Civil Lines Hospital, Mandi Baha Uddin.054-6500942

SargodhaZahoor Plaza, Hussain Chowk, Noori Gate, Sargodha048-3768825

SialkotM.A. Heights, Defence Road, Sublime Chowk, Khewat No 343, Khatoni No 724,Khasra No.24,Opposite WAPDA OFFICE, Sialkot052-3258877

PasrurNarowal By Pas Pasru Road Pasrur Near PSO Petrol Pump052-6442724

mid-year review 2 0 1 7 - mobilink microfinance bank review.pdf · mid-year review 2 0 1 7....

Documents