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SILKBANK
History
On September 15, 2001, under the supervision of the State Bank of Pakistan (SBP), the
institution then known as the Prudential Bank was acquired by the management and
associates of the Saudi Pak Industrial and Agricultural Investment Company (Pvt) Ltd
(SAPICO).

On March 31, 2008, a Consortium comprising of IFC, Bank Muscat, Nomura


International and Sinthos Capital led by senior bankers Mr. Shaukat Tarin and Mr.
Sadeq Sayeed acquired 86.55% stake in Silkbank for around $213 million or $0.47 per
share (PKR 29.3 equivalent per share). Under the new leadership, the Bank will
continue to focus on SME & Consumer financing resulting in efforts of increased
profitability.

Vision
Benchmark of Excellence in premier banking

Mission
To be the leader in premier banking, trusted by customers for accessibility, service &
innovation; be an employer of choice creating value for all stakeholder.

Values
Silkbank prides itself in being a conscientious and responsible corporate citizen with a
commitment to the development of Pakistan. At Silkbank our employees are
encouraged to give back to society and we have made concerted efforts towards the
development of healthcare, education and constructive, character building sports
activities in the underdeveloped segments of our country.

Core values

Customer Focus
Integrity
Teamwork
Creativity

Meritocracy
Humility

Products Dealt With


Current Accounts
All-in-One Account
Silkbanks All-in-One account provides insurance for automobiles, cell
phones, vital documents, home appliances and jewelry and on cash being
snatched after withdrawal either from the bank itself or the ATM.

Business Value Account


The Business value account is most beneficial to businessman employed
in the trading business. Through Jubilees General Insurance scheme up
to Rs. 10 million of the inventory and merchandise is insured. Apart from
that customers are also entitled to cheque books, pay orders, inter-city
transactions and Silkbank Visa debit cards, completely free of cost.

Salary Premium Account


The salary premium account offers a number of perks along with your
salary. Hassle free Salary processing, cash snatching coverage and
discounted auto-insurance rates are offered with this account, along with
being entitled to cheque books, pay orders, Silkbank Visa debit cards and
inter-city transactions.

Basic Banking Account


This account can be opened for a minimum of Rs. 1,000/- and maintaining
an average balance is not required. Two debit and credit transactions
each month are allowed, free of charge.

Online Express
Through the online express account, customers can access their accounts
online and enjoy online transactions. A few of the perks offered with this
account are;

Online (Intercity) Transactions


Pay Orders & Demand Drafts
Cheque Collection & Return
Call Deposits (CDR)
Cheque Books
Safe Deposit Lockers

Saving Accounts
Munafa Rozana
This account calculates your profit at 8% per annum and credits your
account with that amount daily.

PLS Savings Account


Having a Silkbank PLS Savings account enables you to receive a profit
pay out twice a year, with a monthly interest rate of 6% on all tiers of
investments. The profit is calculated on the minimum balance of the month
and customers can also avail Visa debit cards through this account

Super Saver Account


The Super Saver account offers the highest return on deposits, the profit
is calculated on a daily product basis, with the profit being payable every
month.

Term Deposits
Term Deposit
The minimum amount for a deposit is Rs. 100,000. Customers may invest
their money for a certain period of time such as 1-2 months, 3-5 months
and 6-11 months, with interest rates being different for every amount
invested and the time it has been invested for.

For term deposits

exceeding Rs. 50 million, the business heads will decide on the rate of
interest to be provided to the customer.

Mahana Munafa
Through this account you can earn a maximum profit off your balance,
which is credited every month. A minimum balance of Rs. 100,000 is
required to open the account and profit is calculated at different rates of
each tier of investment.

Salana Munafa
With this account, customers receive a pay out every month on the
invested amount and the term deposit is valid for a year.

Silkbank Ready Line


Silkbank ready line was a loan created to provide peace of mind to its customers.
This loan provides a running finance facility of up to Rs. 2 million. It also provides
free Silkbank Visa debit cards, a credit line operable from all Silkbank branches
and ATMs, no collateral or security, no penalty or charges on early payment, a
mark-up payable on only the amount used, and complimentary life insurance
provided up to the amount utilized.

Silk Educational Takaful


Partnered with the Dawood Family Takaful Ltd. firm, this scheme insures a
childs educational future through different insurance policies. This plan
has been carefully designed to comprehensively tackle educational
financial hurdles in your childs near future.

Silk Secure Takaful


The Silk Secure Takaful scheme insures people of their financial futures
with todays uncertain economic times. By investing this scheme,
customers can aspire for a better future, without any drastic financial
fears.

Silk Health Line


The Silk Health Line scheme provides medical insurance. The plan is
designed

to

provide

cash-less

coverage

in

case

of

in-patient

hospitalization. Its aim is to provide quality health care to patients suffering


from any illnesses, or accidents. This plan is partnered with Asia Care
Health & Life Insurance Co. Ltd.

Silk Retirement Plan


The Silk Retirement Plan is partnered with EFU Life. This scheme allows
its customers to begin saving and planning for their futures after
retirement. It enables them to maintain their standard of living, even after
they stop getting a salary.

Statements of Financial Position

Balance Sheet

2010

2011

2012

2013

2014

2015

14,74
7

18,37
5

17,84
3

11,332

9,899

9,013

20,56
1
14,10
4

23,91
6
20,05
5

26,26
0
44,82
8

Lendings to financial institutions

1,389

803

2,777

791

1,900

2,000

Cash and balances with treasury and other banks

2,446

1,523

4,342

2,913

2,605

4,330

Operating fixed assets

1,001

904

832

862

801

1,324

Deferred tax asset - net

1,601

1,436

1,409

1,484

1,058

658

944
33,46
0

1,276
34,21
6

1,266
37,48
2

1,810
42,52
5

2,567
52,90
3

3,118
82,51
7

-2,609

-2,544

-2,398

-2,292

-2,104

-2,073

-241

-235

-118

-113

-102

-102

-99
30,51
1

-106
31,33
1

-112
34,85
4

-119
40,00
1

-115
50,58
1

-176
80,16
6

Customer deposits and other accounts

14,87
2

17,66
9

22,75
4

24,63
3

31,64
2

Borrowings

6,535

3,996

2,477

2,987

5,965

38,84
4
27,32
6

116

529

251

919

309

492

Other liabilities

1,062

Total liabilities

22,58
5

955
23,14
9

856
26,33
8

Net assets

7,926

Share capital

14,33
5

8,182
14,33
5

8,516
14,33
5

1,331
29,87
0
10,13
1

Assets
Advances - gross
Investments - gross

Other assets - gross


Total assets - gross of provisions
Provision against advances - specific and general
Provision for diminution in the value of investments
Provision held against bad and doubtful other assets
Total assets - net of provisions

Liabilities

Bills payable

Advance against proposed issue of shares


Reserves
Unappropriated profit / (accumulated losses)
Equity
(Deficit) / surplus on revaluation of assets - net of tax

8,082

1,411 1,660
39,32 68,32
6
2
11,25
5 11,844
10,08 10,08
2
2

1,614 -

43

90

151

167

-6,442

-6,252

-6,012

7,936

8,173

8,474

291
10,15
4

-10

42

-23

213

299

472
816
10,76
7 11,198
488

647

Total liabilities & Equity

7,926

8,182

8,516

10,13
1

11,25
5 11,844

Horizontal Analysis
2010

2011

2012

2013

2014

2015

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

124.60161
67.125517
5.4451753
10.327524
6.1300604
9.7375737
8.6526073
232.02007
-17.25097
-1.593544
-0.71879
212.45677

120.9941
79.53583
199.928
177.5143
83.11688
88.0075
134.1102
112.0203
91.91261
48.96266
113.1313
114.2342

139.425
124.4617
56.94744
119.0924
86.11389
92.69207
191.7373
127.0921
87.84975
46.88797
120.202
131.1035

162.1754
176.9767
136.7891
106.5004
80.01998
66.0837
271.928
158.1082
80.64392
42.32365
116.1616
165.7796

178.0701
395.5877
143.9885
177.0237
132.2677
41.09931
330.2966
246.6139
79.45573
42.32365
177.7778
262.7446

100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%

119.8142
27.097037
3.5871703
6.4758934
156.9743
55.482471
97.206211
0
0.6102936
-42.39506
55.421442
0.0610294
55.482471

152.9989
37.9036
216.3793
80.60264
116.6172
107.4439
100
0
351.1628
93.32505
106.7792
-420
107.4439

165.6334
45.70773
792.2414
125.3296
132.2559
127.8198
56.37949
0
388.3721
-4.51723
127.9486
230
127.8198

212.7622
91.27774
266.3793
132.8625
174.1244
142.001
70.33136
0
495.3488
-7.32692
135.6729
-4880
142.001

261.1888
418.1484
424.1379
156.3089
302.5105
149.4322
70.33136
0
695.3488
-12.6669
141.1038
-6470
149.4322

Comments

Vertical Analysis of Balance Sheet


2010

2011

2012

2013

2014

2015

48.33339
37.1407
4.552456
8.016781
3.280784
5.247288
3.093966
109.6654
-8.55101
-0.78988
-0.32447
100%

58.64798
31.59491
2.562957
4.861
2.885321
4.58332
4.072644
109.2081
-8.11975
-0.75006
-0.33832
100%

51.19355
25.8593
7.967522
12.45768
2.3871
4.042578
3.632295
107.54
-6.88013
-0.33856
-0.32134
100%

51.40121
35.25912
1.977451
7.282318
2.154946
3.709907
4.524887
106.3098
-5.72986
-0.28249
-0.29749
100%

47.28258
39.64928
3.756351
5.150155
1.583599
2.091695
5.075028
104.5907
-4.15966
-0.20166
-0.22736
100%

32.75703
55.91897
2.494823
5.401292
1.651573
0.820797
3.889429
102.9327
-2.58588
-0.12724
-0.21954
100%

48.74308
21.4185
0.380191
3.480712
74.02248
25.97752
46.98306
0
0.140933
-21.1137
26.01029
-0.03278
25.97752

56.39463
12.75414
1.688424
3.048099
73.88529
26.11471
45.75341
0
0.287255
-19.9547
26.08599
0.028726
26.11471

65.28376
7.106788
0.720147
2.455959
75.56665
24.43335
41.12871
0
0.433236
-17.2491
24.31285
0.120503
24.43335

61.58096
7.467313
2.297443
3.327417
74.67313
25.32687
20.20449
4.034899
0.41749
0.727482
25.38437
-0.0575
25.32687

62.55709
11.79297
0.610901
2.789585
77.74856
22.25144
19.93239
0
0.421107
0.933157
21.28665
0.964789
22.25144

48.45446
34.08677
0.613727
2.070703
85.22566
14.77434
12.5764
0
0.372976
1.017888
13.96852
0.807075
14.77434

Comments

Income Statement
2010

Profit & Loss Account


Mark-up / return / interest earned

Mark-up / rerurn / interest expensed


Net mark-up / interest income
Fee, commission, brokerage and Income from dealing
in foreign currencies

2011

2012

2013

2014

-1,350

3,35
2
1,94
4

1,034

1,408

3,05
4
1,72
2
1,33
2

3,20
7
1,82
3
1,38
4

4,61
9
2,80
6
1,81
3

152

153

201

41

507

2,384

2015

5,468

3,32
6
2,14
3

133

83

112

Dividend income and (loss) / gain on sales of securities net

44

23

38 -

Other income and unrealised (loss) / gain on revaluation


of investments

144

47

24

98

321
1,35
5
1,46
2

153
1,56
1
1,39
7

154
1,48
6
1,45
9

160
1,54
4
1,55
1

217
2,03
0
1,64
6

805
2,94
8
2,111

-24

37

137

88

41

-22

-131

201

164

81

425

815

11

36

137

-199

-385

-120

237

301

84

226

431

Non mark-up / interest income


Revenue

Non mark-up / interest expenses


(Charge) / reversal / recovery of provision / against writeoffs
Profit / (Loss) before taxation
Taxation
Profit / (Loss) after taxation

Horizontal analysis of Income Statememt

2010

2011

2012

2013

2014

2015

100%

22.730047

128.104

134.5218

193.75

229.3624

100%

-13.18234

127.5556

135.037

207.8519

246.3704

100%

9.5477046

128.8201

133.8491

175.3385

207.2534

100%

0.5628263

84.21053

114.2857

115.0376

151.1278

100%

0.1559639

86.36364

93.18182

1152.273

100%

0.3187089

2.777778

5.555556

16.66667

68.05556

100%

1.0374992

47.97508

49.84424

67.60125

250.7788

100%

10.585204

109.6679

113.9483

149.8155

217.5646

100%

-9.473113

99.7948

106.0876

112.5855

144.3912

100%

0.2508985

-570.833

-366.667

-170.833

91.66667

100%

1.3629891

-125.191

-61.8321

-324.427

-622.137

100%

0.2441174

1245.455

27.27273

-1809.09

-3500

100%

1.6071065

-250.833

-70

-188.333

-359.167

Comments

Vertical analysis of Income Statememt

2010

2011

2012

2013

2014

2015

100%

100%

100%

100%

100%

100%

-56.6275

-57.9952

-56.3851

-56.8444

-60.7491

-60.8266

43.37248

42.00477

43.61493

43.1556

39.25092

39.19166

5.578859

2.476134

3.667322

4.739632

3.312405

3.675933

1.845638

0.686158

1.24427

0.887638

9.272129

6.040268

1.402148

0.130976

0.249454

0.519593

1.792246

13.46477

4.564439

5.042567

4.989086

4.697987

14.72202

56.83725

46.56921

48.6575

48.14468

43.94891

53.91368

-61.3255

-41.6766

-47.7734

-48.363

-35.6354

-38.6064

-1.00671

1.103819

4.48592

2.743998

0.887638

-0.40234

-5.49497

5.99642

5.370007

2.525725

9.201126

14.9049

0.461409

1.073986

4.48592

0.093545

-4.30829

-7.04097

-5.03356

7.070406

9.855927

2.61927

4.892834

7.882224

Comments

Ratio Analysis

Ratios

2010

2011

2012

2013

2014

2015

Return on equity (RoE)

-1.60%

2.90%

3.60%

0.90%

2.10%

3.70%

Return on assets (RoA)

-0.40%

0.80% 0.90%
12.90 11.00
-9.60%
%
%
81.60 89.60 67.90
%
%
%
107.90 89.50 98.20
%
%
%

0.20%
5.30%
74.20
%
100.40
%

0.50%
20.90
%
68.90
%
81.10
%

0.60%
27.70
%
62.30
%
71.60
%

Profit before tax to revenue ratio


Advances to deposits ratio (ADR)
Efficiency ratio (cost to revenue)
Earnings Per Share (EPS)*

-0.1

0.16

0.37

0.1

0.24

0.43

Market value per share - rupees

1.96

1.45

2.85

4.72

810

760

732

614

602

657

28

28

28

28

28

34

Number of employees
Number of branches

Comments

Conclusion

References

Book(Financial Reporting & Aanalysis


Annual report of SILKBANK
www.silkbank.com.pk

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