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First Women Bank LTD.: Condensed Interim Financial Information
First Women Bank LTD.: Condensed Interim Financial Information
DIRECTORS’ REPORT
The Board of Directors of First Women Bank Ltd. is pleased to present Condensed Interim
Financial Information (un-audited) for the nine months period ended 30th September 2011:
Financial Highlights: (Rs. in 000’s)
As at
As at
30th September st
31 December 2010
2011
Advances – gross: 6,731,760 6,535,694
Gross Advances of the Bank as at 30th September 2011 increased by Rs. 196 million or by
3%. However, the Bank increased its treasury activities during the current period and invested
in Government Securities, which resulted in an increase in net Investments portfolio by
Rs. 6,996 million or by 203.95%.
During the current quarter the Bank concentrated on increasing its Deposit base, which has
resulted in an increase in Deposits by around Rs. 3,752 million or by 36.80%.
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First Women Bank Limited.
Mark-up/ return/ interest income during the current nine months period increased by 37.81%
from Rs. 995 million to Rs. 1,371 million, which was significantly absorbed by increase in
cost of funds that has increased by 51.09%, from Rs. 566 million to Rs. 856 million.
The Bank’s administrative and other expenses increased by Rs. 48 million or by 12.55%. The
Bank will continue its strategy of controlling its costs, but improving its services and
increasing the business with stringent risk management measures.
Advances:
Gross Advances in respect of Public sector amounted to Rs. 3,736 million (55.50% of total
gross advances) and in respect of Private sectors entities amounted to Rs. 2,995 million
(44.50% of total gross advances), as at 30th September 2011.
To date, the Bank has disbursed Rs. 35,757 million with outreach to 48,975 borrowers, of
which Rs. 18,012 million has been disbursed to women that constitute 49.64% financing to
women. First Women Bank Ltd. caters to women at all socio-economic levels; Micro, Small
& Medium and Corporate:
o Micro-Credit : Rs. 3.4 billion, which constitute 18.9% of total disbursements to women
o SMEs : Rs. 12.2 billion, which constitute 67.8% of total disbursements to women
o Corporate : Rs. 2.4 billion, which constitute 13.3% of total disbursements to women
Total Rs. 18.0 billion 100.0%
72.20% of the borrowers are in Micro-credit category i.e., women living under the line of
poverty, 27.67% are in Small & Medium loans category and 0.13% are under Syndicate loans
category. This reflects the model of First Women Bank Ltd. that caters to women at all levels
of economic activity and takes very seriously its commitment and responsibility to support the
economic and social well-being of the communities in which it operates.
Deposits:
Deposits as at 30th September 2011 included Rs. 5,642 million from the Public sector or
42.96% of Deposits and Rs. 7,491 million in respect of Private sectors entities or 57.04% of
Deposits.
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First Women Bank Limited.
Market Recognition:
The Pakistan Credit Rating Agency (PACRA) has maintained the Bank’s “long-term” and
“short-term” entity ratings, on standalone basis, at "BBB+" (Triple B Plus) and "A2" (A two),
respectively, as per the press release issued on 30 June 2011. These ratings, as defined by
PACRA, denote a low expectation of credit risk emanating from an adequate capacity for
timely payment of financial commitments. The press release also stated that the ratings
continue to carry a positive outlook as the government plans to keep the bank in public sector
by significantly increasing its stake in the bank (above 50%) in which regard some progress
has been achieved lately.
Acknowledgement:
The Board of Directors and the management of the Bank would like to place on record their
gratitude to the Government of Pakistan, Ministry of Finance and the State Bank of Pakistan
for their continued support and guidance. We also take this opportunity to express our
gratitude to our valued customers and business partners for their continued trust and
patronage. Finally, we are thankful to the staff for their commitment and continuous efforts.
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First Women Bank Limited
Condensed Interim Statement of Financial Position
As at 30 September 2011
30 September 31 December
Note
2011 2010
(Un-audited) (Audited)
(Rupees in '000)
Assets
Represented by:
Share capital 12 780,038 283,650
Reserves 247,661 233,282
Unappropriated profit 130,486 567,585
1,158,185 1,084,517
Surplus on revaluation of assets - net of tax 13 87,448 21,504
1,245,633 1,106,021
The annexed notes 1 to 20 form an integral part of these condensed interim financial information.
Basic and diluted earning / (loss) per share - after tax 0.92 0.24 0.25 0.38
The annexed notes 1 to 20 form an integral part of these condensed interim financial information.
The annexed notes 1 to 20 form an integral part of these condensed interim financial information.
The annexed notes 1 to 20 form an integral part of these condensed interim financial information.
The annexed notes 1 to 20 form an integral part of these condensed interim financial information.
First Women Bank Limited ("the Bank") was incorporated under the Companies Ordinance, 1984 on 21 November 1989
in Pakistan as an unquoted public limited company and commenced operations on 02 December 1989. The Bank is engaged
in commercial banking and related services. The registered office of the Bank is situated at ground floor, S.T.S.M.
Foundation Building, Civil Lines, Karachi. The Bank operates a network of thirty eight branches as at 30 September 2011
(31 December 2010: thirty eight).
2. BASIS OF PREPARATION
These financial information are presented in condensed form in accordance with approved accounting standards as
applicable in Pakistan for Interim Financial Reporting. These interim financial information do not include all of the
information required for full financial statements and should be read in conjunction with the financial statements of the
Bank for the year ended 31 December 2010.
New standards, amendments and interpretations that were mandatory for accounting period beginning on or after
01 January 2011 are not considered to be relevant or have any significant effect on the Bank's operations, and are therefore
not detailed in these condensed interim financial information.
These condensed interim financial information are being submitted to the shareholders in accordance with the requirement
of section 245 of Companies Ordinance 1984. These condensed interim financial information are un-audited but subject to
limited scope review by the auditors.
3. ACCOUNTING POLICIES
The accounting policies and methods of computation followed in the preparation of these condensed interim financial
information are consistent with those applied in the preparation of the annual financial statements of the Bank for the year
ended 31 December 2010.
4. ESTIMATES
The basis for accounting estimates adopted in the preparation of these condensed interim financial information are the same
as those applied in the preparation of the annual financial statements of the Bank for the year ended 31 December 2010.
The financial risk management objectives and policies adopted by the Bank are consistent with those disclosed in the
financial statements of the Bank for the year ended 31 December 2010.
6.1 This represents financing to two financial institutions carrying profit rate ranging from 10% to 13.53 %
(31 December 2010: 10% to 13.32%) per annum. These are due to mature by December 2012 and are adjustable in
monthly installments. These are secured against the term finance certificates and sukkuk certificates given by a borrowing
entity and specific charge / hypothecation of leased receivable / assets.
30 September 31 December
6.2 Particulars of provision against 2011 2010
lendings to financial institutions (Un-audited) (Audited)
(Rupees in '000)
7. INVESTMENTS - net
8. ADVANCES - net
8.3 Particulars of provision against 30 September 2011 (Un-audited) 31 December 2010 (Audited)
non-performing loans and advances Specific General Total Specific General Total
--------------------------------------- (Rupees in '000) ------------------------------
Opening balance 222,799 4,755 227,554 206,222 1,411 207,633
Charge for the period / year 50,603 1,263 51,866 29,451 3,344 32,795
Reversals (6,869) (4,917) (11,786) (12,828) - (12,828)
43,734 (3,654) 40,080 16,623 3,344 19,967
Amounts written off against provision (2,205) - (2,205) (46) - (46)
Closing balance 264,328 1,101 265,429 222,799 4,755 227,554
During the period, additions and disposals (at cost) in operating fixed assets amounted to Rs. 37.188 million (including transfer of
Rs. 2.912 million from capital work in progress) (30 September 2010: Rs. 30.824 million including transfer of Rs. 15.965 million
from capital work in progress) and Rs. 9.991 million (30 September 2010: Rs. 12.927 million) respectively.
30 September 31 December
10. BORROWINGS 2011 2010
(Un-audited) (Audited)
Secured (Rupees in '000)
Borrowings from State Bank of Pakistan under
- Export refinance scheme 18,000 85,000
- Locally manufactured machinery - -
Repurchase agreement borrowings 4,213,421 881,885
4,231,421 966,885
Unsecured
Call borrowings - -
4,231,421 966,885
Customers
Fixed deposits 5,254,182 2,016,785
Savings deposits 3,486,456 3,078,276
Current (saving cum current) accounts - remunerative 2,254,735 2,994,797
Current accounts - non remunerative 1,899,376 1,951,992
Call deposits 189,257 129,923
Sundry deposits 46,870 20,729
13,130,876 10,192,502
Financial institutions
Remunerative deposits 1,500 2,000
Non-remunerative deposits 456 712
1,956 2,712
13,132,832 10,195,214
Note 30 September 31 December
2011 2010
11.1 Particulars of deposits (Un-audited) (Audited)
(Rupees in '000)
2010
Number of Percentage of
shares held shareholding
%
12.4 This includes shares held by Trust Fund created for the purpose of Benazir Employees' Stock Option Scheme. Refer note 15
for detail
12.5 The Bank has issued 49,638,750 ordinary shares of Rs. 10 each as bonus shares at 175% as approved in the extra-ordinary
general meeting of the members held on 22 June 2011. After issuance of these bonus shares, the issued, subscribed and paid-up
capital of the Bank has been increased to Rs. 780.038 million. Also, the authorized capital of the Bank has been increased to
Rs. 2 billion.
12.6 In accordance with BSD Circular No. 7 dated 15 April 2009, the Bank was required to raise paid-up
capital to Rs. 8 billion upto 31 December 2011. The paid-up capital of the Bank as at 30 September 2011
is Rs. 780.038 million. Keeping in view the fact that restructuring / recapitalization of the Bank is
underway, the State Bank of Pakistan (SBP) vide its letter No. BSD/BAI-3/608/2566/2011 dated
02 March 2011, has granted the Bank an extension in meeting the compliance of the said minimum
paid-up capital requirement till 31 December 2011. At the same time SBP has mentioned that the Bank
would need to comply with the Capital Adequacy Ratio requirement.
Listed securities
- Units / certificates of mutual funds / preference shares - net 7,121 5,350
- Listed term finance certificates (579) (740)
6,542 4,610
27,497 (76,002)
Capital commitments - -
The Bank makes commitments to extend credit in the normal course of its business but these being
revocable commitments do not attract any significant penalty or expense if the facility is unilaterally
withdrawn.
There is no change in the status of Benazir Employees' Stock Option Scheme (BESOS) as disclosed in note
3.4 to the financial statements of the Bank for the year ended 31 December 2010. During the period, the
Securities & Exchange Commission of Pakistan on receiving representation from some of entities covered
under the Scheme and after having consulted with the Institute of Chartered Accountants of Pakistan, has
granted exemption vide SRO No. 587 (1)/2011 dated 07 June 2011, to such entities from the application of
amended International Financial Reporting Standard 2: Share Based Payments (IFRS 2) to the Scheme.
Had the exemption not been granted, the staff cost of the Bank for the period would have been higher by
Rs. 3.906 million, profit after tax would have been lower by Rs. 2.539 million, unappropriated profit would
have been lower by Rs. 6.093 million, earning per share would have been lower by Rs. 0.03 per share and
reserves would have been lower by Rs. 7.616 million.
16. RELATED PARTY TRANSACTIONS AND BALANCES
Related parties comprise of associated undertakings, majority shareholders, retirement benefit plans, directors and key management personnel of the Bank. The Bank enters
into transactions with the related parties in the normal course of business. There were no transactions with the key management personnel other than those under the terms
of their employment. The details of transactions with related parties are as follows:
Deposits
Balance at beginning of the period / year 2,006 1,296 19 25,022 2,932 3,381 14,383 25,508
Deposited during the period / year 11,636 9,167 22 75,000 22,839 33,219 875,004 438,410
Withdrawn during the period / year 10,932 8,457 8 100,003 22,193 32,197 888,239 449,535
Adjustment* - - - - - (1,471) -
Balance at end of the period / year 2,710 2,006 33 19 3,578 2,932 1,147 14,383
Advances (secured)
Balance at beginning of the period / year - 4,980 91,666 41,666 7,353 7,677 106,829 57,795
Loans granted during the period / year - 960 - 75,000 300 301 557,968 289,034
Repayments received during the period / year - 582 16,667 25,000 642 625 664,862 240,000
Adjustment - (5,358) - - - - - -
Balance at end of the period / year - - 74,999 91,666 7,011 7,353 (65) 106,829
Mark-up receivable in local currency - - 2,951 1,045 200 161 (28) 7,128
Deposits carry mark-up rate at 5.5% to 13.5% per annum (2010: 5% to 13% per annum).
Mark-up / return / interest earned - - 6,880 3,805 256 292 9,543 11,058
Advances carry profit rates ranging from 5.1% to 15.5 % per annum (2010: 5% to 14.8% per annum)
16.2 Other transactions and balances (including profit and loss related transactions)
(Un-audited) (Un-audited)
Transactions during the period 30 September 30 September 30 September 30 September
2011 2010 2011 2010
For the nine months period ended and as of 30 September 2011 (Un-audited)
Corporate Trading and Retail & Commercial Total
Finance Sales Consumer Banking
Banking
-------------------------------------(Rupees in '000)--------------------------------------------
Segment return on net assets (ROA) -5.22% 3.80% -3.92% 1.88% 0.37%
Segment cost of funds 10.12% 11.36% 9.21% 0.03% 9.93%
For the nine months period ended and as of 30 September 2011 (Un-audited)
Corporate Trading and Retail & Commercial Total
Finance Sales Consumer Banking
Banking
--------------------------------------(Rupees in '000)---------------------------------------------
Segment return on net assets (ROA) (%) 3.13% 5.48% -16.61% 1.92% 0.14%
Segment cost of funds (%) 7.06% 9.83% 7.50% 0.06% 7.56%
30 September 31 December
2011 2010
18. CASH AND CASH EQUIVALENTS (Un-audited) (Audited)
(Rupees in '000)
These condensed interim financial information were authorised for issue by the Board of Directors of the Bank
in their meeting held on 31 October 2011
20. GENERAL