Directors’ Report
Dear Shareholders On behalf of the Board, we are pleased to present the annual report of your Bank for the year ended December 31, 2012.
The Board of Directors has proposed a final cash dividend of Rs. 2 per share (aggregate cash dividend of Rs. 6.5 per share including interim dividends) and to issue bonus shares in the proportion of 1 share for every 10 shares held, i.e.,10% for the year 2012. This, together with the interim dividends declared during 2012, will be approved in the forthcoming Annual General Meeting.
Performance Review
Your Bank posted profit before tax of Rs. 15,870 million during 2012 compared to Rs.15,108 million in 2011, registering a growth of 5%. Profit after tax for the same year grew by 15.2% to reach at Rs. 11,676 million over Rs. 10,140 million in the corresponding year. As a result, EPS of Your Bank increased to Rs. 12.34 in 2012 compared to Rs. 10.71 in 2011. Despite tough business environment, ROA and ROE of Your Bank almost remained at the same level of last year and stood at 2% and 29%, respectively.
Deposits of Your Bank increased to Rs. 514,707 million as at December 31, 2012 compared to Rs. 399,562 million as at December 31, 2011, a year on year (YoY) growth of 28.8%. Gross Advances registered a growth of 10.2%, increasing to Rs. 288,889 million as at December 31, 2012 compared to Rs. 262,137 million as at December 31, 2011. Gross Investments increased to Rs. 269,351 million as at December 31, 2012, a rise of 35.8% over Rs. 198,398 million as at December 31, 2011. The Balance Sheet Size of Your Bank registered a YoY growth of 22.5% to reach at Rs. 631,915 million as at December 31, 2012. The Core Equity consequently increased by 14.11% to reach at Rs. 42,928 million as at December 31, 2012 compared to Rs. 37,620 million as at December 31, 2011.
Net Mark-up / Interest Income during 2012 decreased by 27.1% over 2011 to Rs. 18,361 million, attributable mainly to higher deployment of funds towards dividend bearing investment activities. This is also reflected by 98.5% growth in Director’s Report 2012Non Mark-up / Interest Income to Rs. 13,794 million in 2012 compared to Rs. 6,950 million in 2011. The Administrative Expenses increased by 10.5% to Rs. 14,546 million in 2012 compared to Rs. 13,166 million in 2011.
The provision against loans, investments and lending to FIs reduced by 78.4% to Rs. 651 million in 2012 compared to Rs. 3,009 million during 2011. The provision coverage against non-perming loan remained at 85.9% as at December 31, 2012.
| (Rupees in million) | 2012 | 2011 | Growth |
| Profit after tax for the year | 11,676 | 10,140 | 15% |
| Accumulated profits brought forward | 20,255 | 15,829 | 28% |
| Transfer from surplus on revaluation of fixed assets – net of tax | 31 | 29 | 7% |
| Profit available for appropriation | 31,962 | 25,998 | 23% |
| Final cash dividend for the year ended December 31, 2011 at Rs. 2.5 per share (2011: Year ended December 31, 2010 at Rs. 2 per share) | (2,151) | (1,564) | 38% |
| Bonus shares for the year ended December 31, 2011 @ 10% (2011: Year ended December 31, 2010 @ 10%) * | (658) | - | - |
| Transfer to Statutory Reserves | (2,335) | (2,028) | 15% |
| Accumulated profits carried forward | 22,559 | 20,255 | 11% |
| Earning Per Share (EPS) Rs. | 12.34 | 10.71 | 15% |
| * Appropriation out of Share Premium Account |
