Habib Bank : Financial Statements for the Year Ended December 31, 2021

CONSOLIDATED FINANCIAL STATEMENTS

For the year ended December 31, 2021

HABIB BANK LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2021

2021	2020		Note	2021	2020
(US $ in '000)			(Rupees in '000)
					ASSETS
2,499,822	2,126,070	Cash and balances with treasury banks	5	441,252,246	375,280,120
365,060	320,280	Balances with other banks	6	64,438,075	56,533,829
531,078	170,832	Lendings to financial institutions	7	93,742,432	30,154,193
11,041,399	11,039,251	Investments	8	1,948,955,978	1,948,576,822
8,537,857	6,931,539	Advances	9	1,507,047,097	1,223,510,222
559,030	505,288	Fixed assets	10	98,676,342	89,190,210
71,555	58,992	Intangible assets	11	12,630,475	10,412,880
-	-	Deferred tax assets		-	-
853,904		653,800	Other assets	12	150,725,500		115,404,542
24,459,705	21,806,052			4,317,468,145	3,849,062,818
					LIABILITIES
250,389			263,063	Bills payable	13	44,196,984		46,434,199
2,471,528			3,082,528	Borrowings	14	436,258,005		544,107,826
19,159,999			16,034,872	Deposits and other accounts	15	3,381,998,398		2,830,371,390
-			-	Liabilities against assets subject to finance lease		-		-
70,102			126,653	Subordinated debt	16	12,374,000		22,356,000
28,794			58,850	Deferred tax liabilities	17	5,082,602		10,387,859
871,731			735,979	Other liabilities	18	153,872,354		129,910,297
22,852,543	20,301,945			4,033,782,343	3,583,567,571
1,607,162	1,504,107	NET ASSETS		283,685,802	265,495,247
					REPRESENTED BY
					Shareholders' equity
83,101			83,101	Share capital	19	14,668,525		14,668,525
461,017			408,252	Reserves		81,375,519		72,062,025
142,535			203,978	Surplus on revaluation of assets - net of tax	20	25,159,371		36,004,914
897,616			782,990	Unappropriated profit		158,441,418		138,208,223
1,584,269	1,478,321	Total equity attributable to the equity holders of the Bank		279,644,833	260,943,687
22,893	25,786	Non-controlling interest		4,040,969	4,551,560
1,607,162	1,504,107			283,685,802	265,495,247
					CONTINGENCIES AND COMMITMENTS	21

The annexed notes 1 to 48 and annexures I to III form an integral part of these consolidated financial statements.

President and	Chief Financial Officer	Director	Director	Director
Chief Executive Officer

1

HABIB BANK LIMITED

CONSOLIDATED PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED DECEMBER 31, 2021

2021	2020		Note	2021	2020
(US $ in '000)			(Rupees in '000)
1,485,746	1,536,637	Mark-up / return / profit / interest earned	23	262,253,962	271,237,258
741,218		799,559	Mark-up / return / profit / interest expensed	24	130,834,913		141,132,940
744,528	737,078	Net mark-up / return / profit / interest income		131,419,049	130,104,318
					Non mark-up / interest income
144,087			106,483	Fee and commission income	25	25,433,355		18,795,739
5,177			2,772	Dividend income		913,769		489,303
14,648			16,787	Share of profit of associates and joint venture		2,585,595		2,963,090
30,483			(916)	Foreign exchange income / (loss)		5,380,594		(161,688)
(1,032)			6,107	(Loss) / gain from derivatives		(182,098)		1,077,945
5,803			39,968	Gain on securities - net	26	1,024,384		7,054,874
6,548			2,128	Other income	27	1,155,761		375,597
205,714	173,329	Total non mark-up / interest income		36,311,360	30,594,860
				Total income
950,242	910,407		167,730,409	160,699,178
					Non mark-up / interest expenses
542,650			532,641	Operating expenses	28	95,784,969		94,018,405
7,213			6,287	Workers' Welfare Fund - charge	29	1,273,226		1,109,730
3,157			1,817	Other charges	30	557,198		320,793
553,020	540,745	Total non mark-up / interest expenses		97,615,393	95,448,928
			Profit before provisions and taxation
397,222	369,662		70,115,016	65,250,250
45,816	69,228	Provisions / (reversals) and write offs - net	31	8,087,105	12,219,614
			Profit before taxation
351,406	300,434		62,027,911	53,030,636
150,249	125,301	Taxation	32	26,521,038	22,117,287
201,157	175,133	Profit after taxation		35,506,873	30,913,349
					Attributable to:

198,409	175,014	Equity holders of the Bank
2,748		119	Non-controlling interest
201,157	175,133

35,021,853 30,892,271

485,020 21,078

35,506,873 30,913,349

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

Basic and diluted earnings per share	33	23.88	21.06

The annexed notes 1 to 48 and annexures I to III form an integral part of these consolidated financial statements.

President and	Chief Financial Officer	Director	Director	Director
Chief Executive Officer

2

HABIB BANK LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2021

2021	2020		2021	2020
	(US $ in '000)		(Rupees in '000)
				Profit after taxation for the year attributable to:
	198,409		175,014	Equity holders of the Bank	35,021,853			30,892,271
	2,748		119	Non-controlling interest	485,020			21,078
201,157	175,133		35,506,873			30,913,349
				Other comprehensive income / (loss)
				Items that may be reclassified to the profit and loss account in
				subsequent periods:
				Effect of translation of net investment in foreign branches, subsidiaries,
				joint venture and associates - net of tax, attributable to:
	30,120		13,131	Equity holders of the Bank	5,316,304			2,317,496
	482		435	Non-controlling interest	85,115			76,720
30,602	13,566		5,401,419			2,394,216
846	311	Increase in share of exchange translation reserve of associates - net of tax	149,385	54,866
				Movement in surplus / deficit on revaluation of investments - net of tax,
				attributable to:
	(60,641)		28,202	Equity holders of the Bank	(10,703,813)			4,978,206
	(340)		108	Non-controlling interest	(60,040)			19,147
(60,981)	28,310		(10,763,853)			4,997,353
				Movement in share of surplus / deficit on revaluation of investments
(530)	198	of associates - net of tax	(93,613)	34,977
				Items that are not to be reclassified to the profit and loss account
				in subsequent periods:
				Remeasurement gain / (loss) on defined benefit obligations - net of tax,
				attributable to:
	1,155		(876)	Equity holders of the Bank	204,020		(154,494)
	(7)		3	Non-controlling interest	(1,152)		486
1,148	(873)		202,868		(154,008)
				Share of remeasurement gain on defined benefit obligations of associates
24	29	- net of tax	4,186	5,168
				Movement in surplus / deficit on revaluation of fixed assets -
				net of tax, attributable to:
	81		34,658	Equity holders of the Bank	14,317			6,117,647
	(81)		214	Non-controlling interest	(14,317)		37,697
-	34,872		-		6,155,344
752	281	Movement in surplus / deficit on revaluation of non-banking assets - net of tax	132,680	49,570
	173,018		251,827	Total comprehensive income	30,539,945		44,450,835
				Total comprehensive income attributable to:
170,216	250,948	Equity holders of the Bank	30,045,319	44,295,707
	2,802		879	Non-controlling interest	494,626		155,128
173,018	251,827		30,539,945		44,450,835

The annexed notes 1 to 48 and annexures I to III form an integral part of these consolidated financial statements.

President and	Chief Financial Officer	Director	Director	Director
Chief Executive Officer

3

HABIB BANK LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2021

			Attributable to shareholders of the Bank
			Reserves			Surplus / (deficit) on
	Statutory		Capital		revaluation of
					On			Unappro-		Non-
Share	Joint							controlling	Total
	Exchange	Non-	acquisition		Fixed / Non	priated	Sub Total
capital	venture	Bank		interest
translation	distribu-	of common	Investments	Banking	profit
	and	(note 19.5)
	(note 19.6)	table	control		Assets
	subsidiary
				entity
----------------------------------------------------------------------------------------------------					(Rupees in '000) ----------------------------------------------------------------------------------------------------

Balance as at December 31, 2019

Comprehensive income for the year

Profit after taxation for the year ended December 31, 2020

Other comprehensive income / (loss)

Effect of translation of net investment in foreign branches, subsidiaries, joint venture and associates - net of tax

Increase in share of exchange translation reserve of associates - net of tax

Remeasurement (loss) / gain on defined benefit obligations - net of tax

Share of remeasurement gain on defined benefit obligations of associates- net of tax

Movement in surplus / deficit on revaluation of assets - net of tax

Movement in share of surplus / deficit on revaluation of assets of associates - net of tax

Transferred to statutory reserves

Transferred from surplus on revaluation of assets - net of tax

Exchange gain realised on capital reduction in subsidiary under liquidation - net of tax

Reversal of deferred tax asset recognised on subsidiary under liquidation

Exchange loss realised on closure of Bank branch - net of tax

Transactions with owners, recorded directly in equity

Final cash dividend - Rs 1.25 per share declared subsequent to the year ended December 31, 2019

1st interim cash dividend - Rs 1.25 per share

14,668,525	1,239,213	33,463,859	31,167,030	547,115	(156,706)	3,530,150	21,345,233	114,550,097	220,354,516	4,396,996	224,751,512
-	-	-	-	-	-	-	-	30,892,271	30,892,271	21,078	30,913,349
-	-	-	2,317,496	-	-	-	-	-	2,317,496	76,720	2,394,216
-	-	-	54,866	-	-	-	-	-	54,866	-	54,866
-	-	-	-	-	-	-	-	(154,494)	(154,494)	486	(154,008)
-	-	-	-	-	-	-	-	5,168	5,168	-	5,168
-	-	-	-	-	-	4,978,206	6,167,217	-	11,145,423	56,844	11,202,267
-	-	-	-	-	-	34,977	-	-	34,977	-	34,977
-	-	-	2,372,362	-	-	5,013,183	6,167,217	30,742,945	44,295,707	155,128	44,450,835
-	207,937	3,152,368	-	-	-	-	-	(3,360,305)	-	-	-
-	-	-	-	-	-	-	(50,869)	51,433	564	(564)	-
-	-	-	(1,082,350)	-	-	-	-	-	(1,082,350)	-	(1,082,350)
-	-	-	-	-	-	-	-	(108,817)	(108,817)	-	(108,817)
-	-	-	1,151,197	-	-	-	-	-	1,151,197	-	1,151,197
-	-	-	-	-	-	-	-	(1,833,565)	(1,833,565)	-	(1,833,565)
-	-	-	-	-	-	-	-	(1,833,565)	(1,833,565)	-	(1,833,565)
-	-	-	-	-	-	-	-	(3,667,130)	(3,667,130)	-	(3,667,130)

Balance as at December 31, 2020

Comprehensive income for the year

Profit after taxation for the year ended December 31, 2021

Other comprehensive income / (loss)

Effect of translation of net investment in foreign branches, subsidiaries, joint venture and associates - net of tax

Increase in share of exchange translation reserve of associates - net of tax

Remeasurement gain / (loss) on defined benefit obligations - net of tax

Share of remeasurement gain on defined benefit obligations of associates- net of tax

Movement in surplus / deficit on revaluation of assets - net of tax

Movement in share of surplus / deficit on revaluation of assets of associates - net of tax

Transferred to statutory reserves

Transferred from surplus on revaluation of assets - net of tax Exchange gain realised on liquidation of subsidiary - net of tax

Exchange gain realised on partial repatriation of branch capital - net of tax

Acquisition of additional interest in subsidiary

14,668,525	1,447,150	36,616,227	33,608,239	547,115	(156,706)	8,543,333	27,461,581	138,208,223	260,943,687	4,551,560	265,495,247
-	-	-	-	-	-	-	-	35,021,853	35,021,853	485,020	35,506,873
-	-	-	5,316,304	-	-	-	-	-	5,316,304	85,115	5,401,419
-	-	-	149,385	-	-	-	-	-	149,385	-	149,385
-	-	-	-	-	-	-	-	204,020	204,020	(1,152)	202,868
-	-	-	-	-	-	-	-	4,186	4,186	-	4,186
-	-	-	-	-	-	(10,703,813)	146,997	-	(10,556,816)	(74,357)	(10,631,173)
-	-	-	-	-	-	(93,613)	-	-	(93,613)	-	(93,613)
-	-	-	5,465,689	-	-	(10,797,426)	146,997	35,230,059	30,045,319	494,626	30,539,945
-	413,822	3,427,149	-	-	-	-	-	(3,840,971)	-	-	-
-	-	-	-	-	-	-	(195,114)	196,608	1,494	(1,494)	-
-	-	-	(1,369)	-	-	-	-	-	(1,369)	-	(1,369)
-	-	-	(246,489)	-	-	-	-	-	(246,489)	-	(246,489)
-	254,692	-	-	-	-	-	-	749,031	1,003,723	(1,003,723)	-

Transactions with owners, recorded directly in equity
Final cash dividend - Rs 3 per share declared
-	-	-	-	-	-	-	-	(4,400,556)	(4,400,556)	-	(4,400,556)
subsequent to the year ended December 31, 2020
1st interim cash dividend - Rs 1.75 per share	-	-	-	-	-	-	-	-	(2,566,992)	(2,566,992)	-	(2,566,992)
2nd interim cash dividend - Rs 1.75 per share	-	-	-	-	-	-	-	-	(2,566,992)	(2,566,992)	-	(2,566,992)
3rd interim cash dividend - Rs 1.75 per share	-	-	-	-	-	-	-	-	(2,566,992)	(2,566,992)	-	(2,566,992)
	-	-	-	-	-	-	-	-	(12,101,532)	(12,101,532)	-	(12,101,532)
Balance as at December 31, 2021	14,668,525	2,115,664	40,043,376	38,826,070	547,115	(156,706)	(2,254,093)	27,413,464	158,441,418	279,644,833	4,040,969	283,685,802

The annexed notes 1 to 48 and annexures I to III form an integral part of these consolidated financial statements.

President and	Chief Financial Officer	Director	Director	Director
Chief Executive Officer

4