First Women Bank Limited.

First Women Bank Ltd.

Condensed Interim Financial Information

For the nine months period ended
30 September 2011
First Women Bank Limited.

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

Deposits: 13,132,832 10,195,214

Total Assets: 19,046,454 12,703,160

Paid-up Capital 780,038 283,650

Reserves 247,661 233,282
Un-appropriated Profit 130,486 567,585
Surplus on revaluation of Assets – net 87,448 21,504
Net Assets: 1,245,633 1,106,021

For the For the

nine months nine months
period ended period ended
30th September 30th September
2011 2010
Net Mark-up/ return/ interest income 515,597 428,705
Fees, commission & other income 70,550 32,289
Administrative expenses & other charges (429,685) (381,773)
Profit before provisions & taxation 156,461 79,221
Provisions against non-performing advances – net (40,080) (8,411)
Provisions for diminution in value of investments (2,297) (3,856)
Reversal / (provisions) against lendings to
financial institutions 2,500 (22,014)
Profit before taxation 116,584 44,940
Taxation – current & deferred (44,689) (26,253)
Profit after taxation: 71,895 18,687

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%.

-1-
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.

Advances to Women/ women owned Enterprises:

During the current quarter Advances amounting to Rs. 448 million have been disbursed, out
of which Rs. 262 million has been disbursed to women that constitute around 54.48% of total
disbursements made during the current quarter.

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.

-2-
First Women Bank Limited.

Deposits of Women/ Women owned Enterprises:

During the current period Deposits from women/ women enterprises increased by
Rs. 577 million. Deposits from women/ women enterprises stood at Rs. 4,707 million as at
30th September 2011. The number of women account-holders is 58,724 which constitute
57.68% of the total account-holders 101,812 as at 30th September 2011.

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.

For and on behalf of the Board of Directors

Mrs. Shafqat Sultana

Chairperson & President / CEO

Date: 31 October 2011

-3-
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

Cash and balances with treasury banks 787,525 836,311

Balances with other banks 512,762 600,228
Lendings to financial institutions 6 158,305 926,323
Investments - net 7 10,426,208 3,430,251
Advances - net 8 6,466,331 6,308,140
Operating fixed assets 9 203,725 188,248
Deferred tax assets - net - 38,861
Other assets - net 491,598 374,798
19,046,454 12,703,160
Liabilities

Bills payable 110,992 102,182

Borrowings 10 4,231,421 966,885
Deposits and other accounts 11 13,132,832 10,195,214
Sub-ordinated loan - -
Liabilities against assets subject to finance lease - -
Deferred tax liabilities 4,263 -
Other liabilities 321,313 332,858
17,800,821 11,597,139
Net assets 1,245,633 1,106,021

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

Contingencies and commitments 14

The annexed notes 1 to 20 form an integral part of these condensed interim financial information.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive
First Women Bank Limited
Condensed Interim Profit and Loss Account (Un-audited)
For the nine months period ended 30 September 2011

Nine months period ended Quarter ended

30 September 30 September 30 September 30 September
2011 2010 2011 2010
--------------------(Rupees in '000) --------------------

Mark-up / return / interest earned 1,371,315 995,067 573,275 389,722

Mark-up / return / interest expensed 855,719 566,362 395,774 225,240
Net mark-up / return / interest income 515,596 428,705 177,501 164,482
Provision for diminution in the value of investments 2,297 3,856 - -
(Reversal) / provision against lendings to financial institutions (2,500) 22,014 - -
Provision against non-performing loans and advances - net 40,080 8,411 22,632 (8,908)
Bad debts written off directly - - - -
39,877 34,281 22,632 (8,908)
Net mark-up / return / interest income after provisions 475,719 394,424 154,869 173,390

Non-mark-up / interest income

Fee, commission and brokerage income 15,095 18,550 4,548 3,891
Dividend income 1,339 4,234 843 1,154
Income from dealing in foreign currencies 13,204 (2,897) 5,705 (4,166)
Gain on sale of securities - net 22,719 227 22,672 -
Other income 18,193 12,175 3,761 5,551
Total non-mark-up / interest income 70,550 32,289 37,529 6,430
546,269 426,713 192,398 179,820
Non-mark-up / interest expenses
Administrative expenses 429,614 381,700 153,397 134,164
Other provisions / write offs - - - -
Other charges (SBP penalties) 71 73 - 17
Total non-mark-up / interest expenses 429,685 381,773 153,397 134,181
Extra ordinary / unusual item - - - -
Profit / (loss) before taxation 116,584 44,940 39,001 45,639

Taxation - current year 36,394 8,220 20,164 1,554

- prior years - - - -
- deferred 8,295 18,033 (789) 14,205
44,689 26,253 19,375 15,759
Profit / (loss) after taxation 71,895 18,687 19,626 29,880

Unappropriated profit brought forward 567,585 546,128 608,129 549,425

Issuance of bonus shares at 175% (496,388) - (496,388) -
Transferred to statutory reserve (14,379) - (4,538) -
Transfer from surplus on revaluation of fixed assets - net of tax 1,773 1,244 591 1,244
58,591 547,372 107,794 550,669
Profit available for appropriation 130,486 566,059 127,420 580,549

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.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive
First Women Bank Limited
Condensed Interim Statement of Comprehensive Income (Un-audited)
For the nine months period ended 30 September 2011

Nine months period ended Quarter ended

30 September 30 September 30 September 30 September
2011 2010 2011 2010
--------------------(Rupees in '000) --------------------

Profit / (loss) for the period 71,895 18,687 19,626 29,880

Other comprehensive income for the period - - - -

Total comprehensive income 71,895 18,687 19,626 29,880

The annexed notes 1 to 20 form an integral part of these condensed interim financial information.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive
First Women Bank Limited
Condensed Interim Cash Flow Statement (Un-audited)
For the nine months period ended 30 September 2011

Period ended Period ended

30 September 30 September
2011 2010
(Rupees in '000)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit / (loss) before taxation 116,584 44,940
Dividend income (1,339) (4,234)
115,245 40,706
Adjustments for non-cash charges:
Depreciation 17,811 15,385
Amortisation of intangible assets 725 847
Provision against Workers Welfare Fund 1,521 80
(Reversal) / provision against lendings to financial institutions (2,500) 22,014
Gain on sale of operating fixed assets (4,574) 7
Gain on sale of securities - net (22,719) -
Provision against non-performing loans and advances - net 40,080 8,411
Provision for diminution in the value of investments 2,297 3,856
32,641 50,600
147,886 91,306
(Increase) / decrease in operating assets
Lendings to financial institutions - gross 770,518 1,042,998
Advances - gross (196,066) (3,979,613)
Others assets (excluding advance taxation) (135,151) (247,157)
439,301 (3,183,772)
Increase / (decrease) in operating liabilities
Bills payable 8,810 32,653
Borrowings 3,264,536 1,202,623
Deposits and other accounts 2,937,618 1,367,807
Other liabilities (11,545) (63,467)
6,199,419 2,539,616
6,786,606 (552,850)
Income tax paid - (44,557)
Net cash generated from operating activities 6,786,606 (597,407)

CASH FLOWS FROM INVESTING ACTIVITIES

Net investments in securities (6,894,755) 477,814
Dividend income received 1,339 4,234
Sale proceeds of operating fixed assets 4,834 225
Purchase of operating fixed assets (34,276) (14,858)
Net cash flow used in investing activities (6,922,858) 467,415
Increase / (decrease) in cash and cash equivalents (136,252) (129,992)
Cash and cash equivalents at beginning of the period 1,436,539 1,299,989
Cash and cash equivalents at end of the period 1,300,287 1,169,997

The annexed notes 1 to 20 form an integral part of these condensed interim financial information.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive
First Women Bank Limited
Condensed Interim Statement of Changes in Equity (Un-audited)
For the nine months period ended 30 September 2011

Share Statutory Revenue reserve Total

capital reserve unappropriated
profit
--------------------------(Rupees in '000) --------------------------

Balance as at 01 January 2010 283,650 228,540 546,128 1,058,318

Changes in equity for the nine months period ended

30 September 2010

Total comprehensive income for the nine months

period ended 30 September 2010 - - 18,687 18,687

Transferred from surplus on revaluation of operating

fixed assets to unappropriated profit - net of tax - - 1,866 1,866

Balance as at 30 September 2010 283,650 228,540 566,681 1,078,871

Changes in equity for the three months period ended

31 December 2010

Total comprehensive income for the three months

period ended 31 December 2010 - - 5,024 5,024

Transferred to statutory reserve - 4,742 (4,742) -

Transferred from surplus on revaluation of operating

fixed assets to unappropriated profit - net of tax - - 622 622

Balance as at 31 December 2010 283,650 233,282 567,585 1,084,517

Issue of Bonus Shares at 175% 496,388 - (496,388) -

Changes in equity for the nine months period ended

30 September 2011

Total comprehensive income for the nine months

period ended 30 September 2011 - - 71,895 71,895

Transferred to statutory reserve - 14,379 (14,379) -

Transferred from surplus on revaluation of operating

fixed assets to unappropriated profit - net of tax - - 1,773 1,773

Balance as at 30 September 2011 780,038 247,661 130,486 1,158,185

The annexed notes 1 to 20 form an integral part of these condensed interim financial information.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive
First Women Bank Limited
Notes to the Condensed Interim Financial Information (Un-audited)
For the nine months period ended 30 September 2011

1. STATUS AND NATURE OF BUSINESS

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.

5. FINANCIAL RISK MANAGEMENT

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.

Note 30 September 31 December

6. LENDINGS TO FINANCIAL INSTITUTIONS 2011 2010
(Un-audited) (Audited)
(Rupees in '000)
Secured
Term lendings 6.1 139,089 155,441
Repurchase agreement lendings 138,292 892,458
277,381 1,047,899

Provision against term lendings 6.2 (119,076) (121,576)

158,305 926,323

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)

Opening balance 121,576 68,500

(Reversal) / charge made during the period / year (2,500) 53,076
Closing balance 119,076 121,576

7. INVESTMENTS - net

Investments by types 30 September 2011 (Un-audited) 31 December 2010 (Audited)

Note Held by Given as Total Held by Given as Total
bank collateral bank collateral
----------------------------------------(Rupees in '000)----------------------------------------
Available-for-sale
- Market Treasury Bills 2,849,639 4,401,657 7,251,296 1,528,369 673,588 2,201,957
- Pakistan Investment Bonds 2,889,501 - 2,889,501 813,646 225,936 1,039,582
- Term Finance Certificates 26,070 - 26,070 35,434 - 35,434
- Units / certificates of mutual funds 30,000 - 30,000 20,000 - 20,000
- Preference shares of a listed company 10,000 - 10,000 10,000 - 10,000
- Shares of an unlisted company 954 - 954 954 - 954
5,806,164 4,401,657 10,207,821 2,408,403 899,524 3,307,927
Held-to-maturity
- Pakistan Investment Bonds 212,647 - 212,647 217,786 217,786
Investments at cost 6,018,811 4,401,657 10,420,468 2,626,189 899,524 3,525,713
Provision for diminution in the
value of investments 7.1 (21,757) - (21,757) (19,460) - (19,460)
Investments - net of provisions 5,997,054 4,401,657 10,398,711 2,606,729 899,524 3,506,253
Surplus / (deficit) on revaluation of
available-for-sale securities - net 16,695 10,802 27,497 (59,299) (16,703) (76,002)
Investments at market value 6,013,749 4,412,459 10,426,208 2,547,430 882,821 3,430,251

Note 30 September 31 December

7.1 Particulars of provision for diminution in 2011 2010
the value of investments (Un-audited) (Audited)
(Rupees in '000)

Opening balance 19,460 15,604

Provision made during the period / year 2,297 3,856
Closing balance 21,757 19,460

8. ADVANCES - net

Loans, cash credits, running finances, etc.

In Pakistan 6,731,760 6,535,694

Provision against non-performing loans and advances

Specific provision 8.3 264,328 222,799
General provision 8.3 1,101 4,755
265,429 227,554
Advances - net of provision 6,466,331 6,308,140

8.1 Particulars of advances (gross)

In local currency 6,731,760 6,535,694

In foreign currencies - -
6,731,760 6,535,694
8.2 Advances include Rs. 599.700 million (31 December 2010: Rs. 430.232 million) which have been placed under the non-performing
status as detailed below:

Category of classification 30 September 2011 (Un-audited) 31 December 2010 (Audited)

Total Specific Specific Total Specific Specific
domestic provision provision domestic provision provision
required held required held
--------------------------------------- (Rupees in '000) ------------------------------
Substandard 194,750 5,369 5,369 70,416 2,015 2,015
Doubtful 72,687 11,458 11,458 134,805 24,148 24,148
Loss 332,263 247,501 247,501 225,011 196,636 196,636
599,700 264,328 264,328 430,232 222,799 222,799

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

9. OPERATING FIXED ASSETS

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

11. DEPOSITS AND OTHER ACCOUNTS

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)

In local currency 12,603,747 9,583,518

In foreign currencies 529,085 611,696
13,132,832 10,195,214

12. SHARE CAPITAL

12.1 Authorised capital

2011 2010 2011 2010

(Number of shares) (Rupees in '000)

200,000,000 30,000,000 Ordinary shares of Rs. 10 each 2,000,000 300,000

12.2 Issued, subscribed and paid up capital

This comprises of fully paid-up ordinary shares of Rs. 10 each as follows:

24,365,000 24,365,000 Issued for cash 243,650 243,650

53,638,750 4,000,000 Issued as bonus shares 536,388 40,000
78,003,750 28,365,000 780,038 283,650

12.3 Major shareholders (associated undertakings) 2011

Number of Percentage of
shares held shareholding
%

MCB Bank Limited 20,889,000 26.78

Habib Bank Limited 20,889,000 26.78
Allied Bank Limited 6,996,000 8.96
National Bank of Pakistan 6,963,000 8.93
United Bank Limited 6,963,000 8.93
Ministry of Women Development, Government of Pakistan 12.4 15,303,750 19.62
78,003,750 100.00

2010
Number of Percentage of
shares held shareholding
%

MCB Bank Limited 7,596,000 26.78

Habib Bank Limited 7,596,000 26.78
Allied Bank Limited 2,544,000 8.96
National Bank of Pakistan 2,532,000 8.93
United Bank Limited 2,532,000 8.93
Ministry of Women Development, Government of Pakistan 12.4 5,565,000 19.62
28,365,000 100.00

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.

Note 30 September 31 December

13. SURPLUS ON REVALUATION OF ASSETS - net of tax 2011 2010
(Un-audited) (Audited)
(Rupees in '000)
Surplus / (deficit) arising on revaluation (net of tax) of:
- operating fixed assets 13.1 67,795 69,568
- available-for-sale securities 13.2 19,653 (48,064)
87,448 21,504

13.1 Surplus on revaluation of operating fixed assets - net of tax

Surplus on revaluation of operating fixed assets as at 01 January 95,021 109,974

Transferred to accumulated profit representing incremental

depreciation charged during the period - net of tax (1,773) (2,488)
Related deferred tax liability (955) (1,340)
(2,728) (3,828)
92,293 106,146
Reversal during the period - (11,125)
92,293 95,021

Deferred tax liability on:

Revaluation surplus at 01 January 25,453 26,793
Incremental depreciation charged during the period (955) (1,340)
24,498 25,453
67,795 69,568

13.2 Surplus / (deficit) on revaluation of available-for-sale

securities - net of tax

Federal Government securities 20,955 (80,612)

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)

Related deferred tax asset - net (7,844) 27,938

19,653 (48,064)
14. CONTINGENCIES AND COMMITMENTS
30 September 31 December
14.1 Transaction-related contingent liabilities 2011 2010
(Un-audited) (Audited)
(Rupees in '000)

Guarantees in favour of:

Government 64,214 44,441
Others 1,830 400
66,044 44,841

14.2 Trade-related contingent liabilities

Letter of credit and acceptances on behalf of:

Government - -
Others 46,477 2,394
46,477 2,394

14.3 Commitment for the acquisition of operating fixed assets

Capital commitments - -

14.4 Commitments in respect of lendings

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.

14.5 Other contingencies

Claims against the Bank not acknowledged as debt 104,037 154,037

15. BENAZIR EMPLOYEES' STOCK OPTION SCHEME (BESOS)

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:

Associated Key management

Directors Undertaking personnel Other related parties
(Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited) (Un-audited) (Audited)
30 September 31 December 30 September 31 December 30 September 31 December 30 September 31 December
2011 2010 2011 2010 2011 2010 2011 2010
16.1 Balances --------------------------------------------------(Rupees in '000)--------------------------------------------------

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

Mark-up payable in local currency 45 10 - - 62 24 318 263

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

(Un-audited) (Un-audited) (Un-audited) (Un-audited)

30 September 30 September 30 September 30 September 30 September 30 September 30 September 30 September
2011 2010 2011 2010 2011 2010 2011 2010
Mark-up / return / interest expensed 98 31 - - 115 71 375 790

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)

Associated undertakings Other related parties

Balances as at the period / year end (Un-audited) (Audited) (Un-audited) (Audited)
30 September 31 December 30 September 31 December
2011 2010 2011 2010
-----------------------------(Rupees in '000)----------------------------

Cash and balance with treasury bank 29,238 64,292 - -

Balances with other banks 344,928 433,345 - -

Investment in National Institutional Facilitation Technologies (Private) Limited 954 954 - -

Mark-up receivable in local currency 51 46 - -

Mark-up payable in local currency - 641 - -

ATM settlement account balance 417 417 - -

Net (payable) / receivable from defined benefit plan - - (2,186) 2,936

Payable to defined contribution plan - - 19 10

Repurchase agreements - 881,885 - -

Repurchase agreement lendings 138,292 - - -

(Un-audited) (Un-audited)
Transactions during the period 30 September 30 September 30 September 30 September
2011 2010 2011 2010

Interest income on lendings to financial institutions 19,481 19,271 - -

Interest expense on repurchase agreement borrowings 128,272 32,765 - -

Dividend income - 3,080 - -

Charge for retirement benefits

Approved pension fund - - 28,005 22,256
Approved gratuity fund - - 275 2,213
Contributory provident fund - - 305 328
- - 28,585 24,797

Proceeds from sale of fixed assets - - 675 -

Remuneration of key management personnel - - 17,117 14,511

17. SEGMENT DETAILS WITH RESPECT TO BUSINESS ACTIVITIES

The segment analysis with respect to business activity is as follows:-

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)--------------------------------------------

Total income 413,204 769,998 225,375 33,288 1,441,865

Total expenses 658,182 358,833 308,160 106 1,325,281
Income tax expense - - - - 44,689
Net income (244,978) 411,165 (82,785) 33,182 71,895

Segment assets - (Gross) 4,689,458 10,811,524 2,113,834 1,761,220 19,376,036

Advance tax - - - - 54,911
Deferred tax assets - - - - -
Total assets 4,689,458 10,811,524 2,113,834 1,761,220 19,430,947

Segment non performing loans 387,212 - 212,488 - 599,700

Segment specific provision required 170,670 - 93,658 - 264,328

Segment liabilities 8,671,039 4,213,421 4,461,793 450,305 17,796,558

Deferred tax liabilities - - - - 4,263
Total liabilities 8,671,039 4,213,421 4,461,793 450,305 17,800,821

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)---------------------------------------------

Total income 398,352 352,992 245,287 30,725 1,027,356

Total expenses 230,706 137,477 614,113 119 982,416
Income tax expense - - - - 26,253
Net income 167,645 215,515 (368,825) 30,606 18,687

Segment assets - (Gross) 5,351,989 3,929,816 2,220,103 1,592,877 13,094,784

Advance tax - - - - 87,925
Deferred tax assets - - - - 35,891
Total assets 5,351,989 3,929,816 2,220,103 1,592,877 13,218,600

Segment non performing loans 292,434 - 137,968 - 430,402

Segment specific provision required 145,218 - 68,512 - 213,730

Segment liabilities 2,643,049 1,174,351 7,481,551 405,358 11,704,309

Deferred tax liabilities - - - - -
Total liabilities 2,643,049 1,174,351 7,481,551 405,358 11,704,309

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)

Cash and balances with treasury banks 787,525 836,311

Balances with other banks 512,762 600,228
1,300,287 1,436,539

19. DATE OF AUTHORISATION FOR ISSUE

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

Figures have been rounded off to the nearest thousand rupees.

Shahid Mughal Shafqat Sultana

Chief Financial Officer President and
Chief Executive

Shafqat Sultana Khalid A. Sherwani Ziaullah Khan Ali Sameer

President and Director Director Director
Chief Executive