THE BANK OF KHYBER THE BANK OF KHYBER
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2024
(Un-audited) | (Audited) | ||
March 31, | December 31, | ||
2024 | 2023 | ||
Note | -------- Rupees in '000 -------- | ||
ASSETS | |||
Cash and balances with treasury banks | 5 | 29,076,788 | 23,895,690 |
Balances with other banks | 6 | 4,949,250 | 3,960,115 |
Lendings to financial institutions | 7 | 2,697,450 | 2,000,000 |
Investments | 8 | 230,428,912 | 223,348,499 |
Advances | 9 | 97,692,369 | 101,587,580 |
Property and equipment | 10 | 4,369,551 | 4,399,426 |
Right-of-use assets | 11 | 2,390,050 | 2,549,241 |
Intangible assets | 12 | 410,461 | 428,608 |
Deferred tax assets | 13 | 2,829,021 | 1,346,748 |
Other assets | 14 | 17,835,390 | 19,670,577 |
392,679,242 | 383,186,484 | ||
LIABILITIES | |||
Bills payable | 15 | 1,220,592 | 3,759,078 |
Borrowings | 16 | 28,826,387 | 50,460,559 |
Deposits and other accounts | 17 | 324,278,254 | 289,291,561 |
Lease liabilities | 18 | 2,280,407 | 2,407,066 |
Subordinated debt | - | - | |
Deferred tax liabilities | - | - | |
Other liabilities | 19 | 18,133,276 | 16,966,936 |
374,738,916 | 362,885,200 | ||
NET ASSETS | 17,940,326 | 20,301,284 | |
REPRESENTED BY | |||
Share capital | 20 | 11,579,360 | 11,027,905 |
Reserves | 4,497,447 | 4,343,001 | |
Surplus on revaluation of assets - net | 21 | 892,888 | 124,622 |
Unappropriated profit | 970,631 | 4,805,756 | |
17,940,326 | 20,301,284 | ||
CONTINGENCIES AND COMMITMENTS | 22 |
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements.
_____________ | ________________ | ___________ | ___________ | __________ |
MANAGING | CHIEF FINANCIAL | DIRECTOR | DIRECTOR | DIRECTOR |
DIRECTOR | OFFICER |
THE BANK OF KHYBER
CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2024
January 1 to | January 1 to | ||
March 31, 2024 | March 31, 2023 | ||
Note | ------- Rupees in '000 ------- | ||
Mark-up / return / interest earned | 23 | 16,955,222 | 10,970,664 |
Mark-up / return / interest expensed | 24 | 13,438,855 | 7,692,825 |
Net mark-up / interest income | 3,516,367 | 3,277,839 | |
NON MARK-UP / INTEREST INCOME | |||
Fee and commission income | 25 | 272,332 | 143,766 |
Dividend income | - | 2,253 | |
Foreign exchange income | 227,268 | 242,671 | |
Income / (loss) from derivatives | - | - | |
Gain / (loss) on securities | 26 | - | (1,584) |
Share of profit / (loss) of associate | 4,696 | (100) | |
Other income | 27 | 44,244 | 33,041 |
Total non-mark-up / interest income | 548,540 | 420,047 | |
Total income | 4,064,907 | 3,697,886 | |
NON MARK-UP / INTEREST EXPENSES | |||
Operating expenses | 28 | 2,360,455 | 1,855,200 |
Workers Welfare Fund | - | - | |
Other charges | 29 | 100 | 2,425 |
Total non-mark-up / interest expenses | 2,360,555 | 1,857,625 | |
PROFIT BEFORE CREDIT LOSS ALLOWANCE | 1,704,352 | 1,840,261 | |
Credit loss allowance and write offs - net | 30 | 190,076 | 193,327 |
Extra ordinary / unusual items | - | - | |
PROFIT BEFORE TAXATION | 1,514,276 | 1,646,934 | |
Taxation | 31 | 742,044 | 708,270 |
PROFIT AFTER TAXATION | 772,232 | 938,664 | |
------- Rupees ------- | |||
(Restated) | |||
Basic and diluted earnings per share | 32 | 0.67 | 0.81 |
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements.
_________ | ______________ | ___________ | ___________ | ___________ |
MANAGING | CHIEF FINANCIAL | DIRECTOR | DIRECTOR | DIRECTOR |
DIRECTOR | OFFICER |
THE BANK OF KHYBER
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2024
January 1 to | January 1 to | |
March 31, 2024 | March 31, 2023 | |
------- Rupees in '000 ------- | ||
Profit after taxation for the period | 772,232 | 938,664 |
Other comprehensive income / (loss) | ||
Items that may be reclassified to profit and loss account in subsequent periods: | ||
Movement in deficit on revaluation of debt investments through FVOCI - net of tax | (350,984) | (1,112,043) |
Share of surplus / (deficit) on revaluation of investment in associate - net of tax | 511 | (462) |
(350,473) | (1,112,505) | |
Items that will not be reclassified to profit and loss account in subsequent periods: | ||
Movement in surplus on revaluation of equity investments - net of tax | 2,164 | - |
Share of remeasurement (loss) / gain on defined benefit obligations of associate - net of tax | (916) | 630 |
1,248 | 630 | |
Total comprehensive income / (loss) | 423,007 | (173,211) |
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements. |
_________ | ______________ | ___________ | ___________ | ___________ |
MANAGING | CHIEF FINANCIAL | DIRECTOR | DIRECTOR | DIRECTOR |
DIRECTOR | OFFICER |
THE BANK OF KHYBER
CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2024
Surplus / (deficit) on | ||||||||
Share | Statutory | revaluation of | Unappropriated | |||||
Total | ||||||||
capital | reserve | Property and | Non-banking | profit | ||||
Investments | ||||||||
equipment | assets | |||||||
--------------------------------------------- Rupees in '000 --------------------------------------------- | ||||||||
Balance as at January 1, 2023 (audited) | 11,027,905 | 3,646,746 | (1,042,518) | 787,200 | 25,461 | 1,982,704 | 16,427,498 | |
Profit after taxation for the three months ended March 31, 2023 | - | - | - | - | - | 938,664 | 938,664 | |
Other comprehensive (loss) / income - net of tax | - | - | (1,112,505) | - | - | 630 | (1,111,875) | |
Total other comprehensive loss | - | - | (1,112,505) | - | - | 939,294 | (173,211) | |
Transfer to statutory reserve | - | 187,733 | - | - | - | (187,733) | - | |
Transfer from surplus on revaluation of non-banking asset - net of tax | - | - | - | - | (920) | 920 | - | |
Balance as at March 31, 2023 (un-audited) | 11,027,905 | 3,834,479 | (2,155,023) | 787,200 | 24,541 | 2,735,185 | 16,254,287 | |
Profit after taxation for the nine months ended December 31, 2023 | - | - | - | - | - | 2,542,613 | 2,542,613 | |
Other comprehensive income - net of tax | - | - | 1,331,802 | 112,920 | 25,516 | 34,146 | 1,504,384 | |
Total other comprehensive income | - | - | 1,331,802 | 112,920 | 25,516 | 2,576,759 | 4,046,997 | |
Transfer to statutory reserve | - | 508,522 | - | - | - | (508,522) | - | |
Transfer from surplus on revaluation of non-banking asset - net of tax | - | - | - | - | (2,334) | 2,334 | - | |
Balance as at December 31, 2023 (audited) | 11,027,905 | 4,343,001 | (823,221) | 900,120 | 47,723 | 4,805,756 | 20,301,284 | |
Effect of adoption of IFRS 9 - ECL - net of tax | - | - | - | - | - | (2,553,296) | (2,553,296) | |
Effect of reclassifications on adoption of IFRS 9 - net of tax | - | - | 1,116,575 | - | - | 307,120 | 1,423,695 | |
Profit after taxation for the three months ended March 31, 2024 | - | - | - | - | - | 772,232 | 772,232 | |
Other comprehensive (loss) / income - net of tax | ||||||||
Movement in deficit on revaluation of investments in debt instruments - net of tax | - | - | (350,984) | - | - | - | (350,984) | |
Share of surplus on revaluation of investment of associate - net of tax | - | - | 511 | - | - | - | 511 | |
Movement in surplus on revaluation of equity investments - net of tax | - | - | 2,164 | - | - | - | 2,164 | |
Share of remeasurement loss on defined benefit obligations of associate - net of tax | - | - | - | - | - | (916) | (916) | |
Total other comprehensive loss - net of tax | - | - | (348,309) | - | - | (916) | (349,225) | |
Transfer to statutory reserve | - | 154,446 | - | - | - | (154,446) | - | |
Transactions with owners, recorded directly in equity | ||||||||
Final cash dividend for the year ended December 31, 2023 (Rs.1.50 per share) | - | - | - | - | - | (1,654,364) | (1,654,364) | |
Bonus shares issued for the year ended December 31, 2023 (Rs. 0.50 per share) | 551,455 | - | - | - | - | (551,455) | - | |
Balance as at March 31, 2024 (un-audited) | 11,579,360 | 4,497,447 | (54,955) | 900,120 | 47,723 | 970,631 | 17,940,326 | |
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements. | ||||||||
____________________ | _______________________ | ___________ | ___________ | ___________ | ||||
MANAGING DIRECTOR | CHIEF FINANCIAL OFFICER | DIRECTOR | DIRECTOR | DIRECTOR |
THE BANK OF KHYBER
CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2024
Note
CASH FLOW FROM OPERATING ACTIVITIES Profit before taxation
Less: Dividend income
Adjustments:
Depreciation - Property and equipment
Depreciation - Non-banking assets acquired in satisfaction of claims Depreciation - Right-of-use assets
Amortization
Credit loss allowance and write offs30 (Gain) / loss on disposal of property and equipment - net
Interest expense on lease liability Share of (profit) / loss of associate
Decrease in operating assets
Lendings to financial institutions
Advances
Others assets
Increase / (decrease) in operating liabilities
Bills payable
Borrowings from financial institutions
Deposits
Other liabilities (excluding current taxation)
Income tax paid
Net cash flow from / (used in) operating activities
CASH FLOW FROM INVESTING ACTIVITIES
Net investments in amortised cost securities
Net Investments in securities classified as FVOCI
Dividends received
Investments in property and equipment
Proceeds from disposal of property and equipment
Net cash flow (used in) / from investing activities
CASH FLOW FROM FINANCING ACTIVITIES
Payments of lease obligations against right-of-use assets
Dividend paid
Net cash flow from / (used in) financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period
January | 1 to | January 1 to |
March 31, | 2024 | March 31, 2023 |
------- Rupees in '000 ------- | ||
1,514,276 | 1,646,934 |
- 2,253
1,514,276 1,644,681
181,775 161,923
8,765 8,438
174,164 144,445
19,909 24,999
190,076 193,327
(7,297)33
105,105 40,197
(4,696)100
667,801 573,462
2,182,077 2,218,143
(697,450) (5,599,229)
(586,925) 22,995,619
1,628,519 (3,125,236)
344,144 14,271,154
(2,538,486) (1,148,771)
(21,634,172) (19,741,940)
34,986,693 3,542,379
(267,908) (2,679,127)
10,546,127 (20,027,459)
456,711 (180,384)
13,529,059 (3,718,546)
(172,923) 10,260,874
(6,789,943) 14,742
-
2,253
(164,155) (185,877)
10,493577
(7,116,528) 10,092,569
(242,298) | (171,150) |
- | (4) |
(242,298) | (171,154) |
6,170,233 | 6,202,869 |
27,855,805 | 19,830,357 |
34,026,038 | 26,033,226 |
The annexed notes 1 to 39 form an integral part of these condensed interim financial statements.
_____________ | ________________ | ___________ | ___________ | ___________ |
MANAGING | CHIEF FINANCIAL | DIRECTOR | DIRECTOR | DIRECTOR |
DIRECTOR | OFFICER |
THE BANK OF KHYBER
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2024
-
STATUS AND NATURE OF BUSINESS
The Bank of Khyber (the Bank) was established in Pakistan under The Bank of Khyber Act, 1991 and is principally engaged in the business of commercial banking and related services. The Bank acquired the status of a scheduled bank in 1994 and is listed on the Pakistan Stock Exchange Limited. The registered office of the Bank is situated at 24-The Mall, Peshawar Cantt, Peshawar. The Bank operates 238 branches including 123 Islamic banking branches (December 31, 2023: 238 branches including 123 Islamic banking branches). The long term credit rating of the Bank assigned by VIS Credit Rating Company Limited and Pakistan Credit Rating Agency Limited (PACRA) are 'A+' and 'A+' respectively and the short-term credit ratings assigned are 'A-1'(A-One) and 'A-1'(A-One) respectively. The majority shares (i.e. 70.20%) of the Bank are held by Government of Khyber Pakhtunkhwa (GoKP).
The Provincial Assembly of Khyber Pakhtunkhwa has passed the Bank of Khyber (Amendment) Act, 2022. As part of the amendments, the name of Bank has been changed from "The Bank of Khyber" to "Bank of Khyber". The Bank is in the process of seeking necessary regulatory approval for the same.
- BASIS OF PREPARATION
- In accordance with the directives of the Federal Government regarding the shifting of the banking system to Islamic modes, the State Bank of Pakistan (SBP) has issued various circulars from time to time. Permissible forms of trade-related modes of financing include purchase of goods by the banks from their customers and immediate resale to them at appropriate profit in price on deferred payment basis. The purchases and sales arising under the respective arrangements (except for Murabaha financings accounted for under Islamic Financial Accounting Standard - 1 "Murabaha") are not reflected in these condensed interim financial statements as such, but are restricted to the amount of facility actually utilized and the appropriate portion of profit thereon.
- The Islamic banking branches of the Bank have complied with the requirements as set out in the Islamic Financial Accounting Standards (IFAS), issued by the Institute of Chartered Accountants of Pakistan (lCAP) as are notified under the provisions of Companies Act, 2017.
- The financial results of the Islamic Banking Branches have been consolidated in these condensed interim financial statements, after eliminating the effects of inter-branch transactions and balances. Key financial figures of the Islamic Banking Branches are disclosed in note 37 to these condensed interim financial statements.
- These condensed interim financial statements have been presented in Pakistani Rupee, which is the Bank's functional and presentation currency. The figures have been rounded off to the nearest thousand rupees, unless otherwise stated.
THE BANK OF KHYBER
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2024
- STATEMENT OF COMPLIANCE
3.1 These condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:
- International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017;
- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Companies Act, 2017;
- Provisions of and directives issued under the Banking Companies Ordinance, 1962 and the Companies Act, 2017; and
- Directives issued by the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
Whenever the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 or the directives issued by the SBP and the SECP differ with the requirements of IAS 34 or IFAS, the requirements of the Banking Companies Ordinance, 1962, the Companies Act, 2017 and the said directives, shall prevail.
- The disclosures made in these condensed interim financial statements have been limited based on the format prescribed by the SBP vide BPRD Circular Letter No. 2 dated February 9, 2023 and IAS 34. These condensed interim financial statements do not include all the information and disclosures required in the audited annual financial statements, and should be read in conjunction with the audited annual financial statements for the year ended December 31, 2023, except for IFRS 9 Financial Instruments adopted by the Bank w.e.f January 1, 2024 as per the applicable SBP circulars.
- SBP vide BSD Circular Letter No. 10, dated August 26, 2002, has deferred the applicability of International Accounting Standard 40, Investment Property for banking companies till further instructions. Moreover, SBP vide BPRD Circular No. 4, dated February 25, 2015, has deferred the applicability of Islamic Financial Accounting Standards (IFAS) 3, Profit and Loss Sharing on Deposits. Further, according to the notification of the SECP issued vide SRO 411(I)/2008 dated April 28, 2008, International Financial Reporting Standard (IFRS) 7, Financial Instruments: Disclosures has not been made applicable for banks. Accordingly, the requirements of these standards have not been considered in the preparation of these condensed interim financial statements.
- MATERIAL ACCOUNTING POLICY INFORMATION, ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT POLICIES
4.1 Material accounting policy information
The accounting policies and methods of computation adopted in the preparation of these condensed interim financial statements are consistent with those applied in the preparation of the audited annual financial statements of the Bank for the year ended December 31, 2023 except for the adoption of IFRS 9 Financial Instruments w.e.f January 1, 2024.
THE BANK OF KHYBER
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2024
4.1.1 IFRS 9 - Financial Instruments 4.1.1.1 Classification of Financial Assets
The Bank classifies its financial assets, other than its investments in associate, into the following categories:
- at Fair Value through Profit and Loss (FVTPL);
- at Fair Value through Other Comprehensive Income (FVOCI);
- at Amortised Cost.
Classification of Equity Instruments
Equity securities that are traded in an active market and are held for trading purposes will be classified as FVTPL. Equity securities that are not held for trading purposes will be classified as FVOCI; however, gains and losses on disposal of securities classified as FVOCI will not be recycled through the profit and loss account. The classification decision is made on a case by case basis at the time of purchase, is documented, and is irrevocable.
Classification of other Financial Assets
Financial Assets other than equity will be classified based on their cash flow characteristics and business model assessment:
- Amortised Cost: These will be classified as amortised cost if the objective is to hold the asset only for collecting contractual cash flows (principal and interest).
- FVOCI: These will be classified at FVOCI when the objective is to collect contractual cash flows (principal and interest) and also to potentially sell the same depending on market conditions. Any unrealized profit or loss on debt instruments classified as FVOCI is reflected in other comprehensive income and is recycled through the profit and loss account when the investment is sold.
- FVTPL: This includes financial assets:
a. which are not classified as either at amortised cost or FVOCI; b. which do not have fixed maturity
In addition, on initial recognition, the Bank may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Subsequent Measurement
Equity and debt securities classified as FVTPL
These securities are subsequently measured at fair value. Changes in the fair value of these securities are taken through the profit and loss account.
THE BANK OF KHYBER
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2024
Equity and debt securities classified as FVOCI
These securities are subsequently measured at fair value. Changes in the fair value of these securities are recorded in OCI. When a debt security is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the profit and loss account. When an equity security is derecognised, gains and losses previously recognised in OCI are not recycled through the profit and loss account but are transferred directly to retained earnings.
Other financial assets classified at amortised cost
Other financial assets initially classified at amortised cost continue to be subsequently measured at amortised cost.
-
Classification of Financial Liabilities
Financial liabilities are either classified as FVTPL, when they are held for trading purposes, or at amortised cost. Financial liabilities classified as FVTPL are measured at fair value.
Financial liabilities classified as amortised cost are initially recorded at fair value and subsequently measured using the effective interest rate method. - Impairment
An ECL provision will be calculated on financial assets designated as FVOCI or as Amortised cost in accordance with the requirements of IFRS 9 and the guidelines issued by the SBP. Credit exposures (in local currency) that have been guaranteed by the Government and Government Securities are exempted from the application of ECL Framework.
Equity securities are not subject to impairment. - Transitional Impact
The Bank has elected to follow the modified retrospective approach for restatement i.e. comparative figures have not been restated on the initial application of IFRS 9. Instead, the cumulative impact has been recorded as an adjustment to equity as of January 1, 2024. Accordingly, the information presented as of December 31, 2023 and for the period ended March 31, 2023 does not reflect the requirements of IFRS 9.
The following table reconciles the original measurement and carrying amounts of financial instruments in accordance with the previous financial reporting framework with the new measurement categories for the Bank.
THE BANK OF KHYBER
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2024
Carrying amount | Derecognition | Carrying amount | |||||
Previous | Classification | of deficit on | |||||
Financial Assets / Liabilities | as of December | Reclassification | ECL | as of January 01, | |||
classification | under IFRS 9 | reclassified | |||||
31, 2023 | 2024 | ||||||
securities | |||||||
--------------------------------- Rupees in '000 --------------------------------- | |||||||
Cash and balances with treasury banks | Cost | Amortised Cost | 23,895,690 | - | - | - | 23,895,690 |
Balances with other banks | Cost | Amortised Cost | 3,960,115 | - | - | (82) | 3,960,033 |
Lendings to financial institutions | Cost | Amortised Cost | 2,000,000 | - | - | - | 2,000,000 |
Investments | |||||||
Held for trading | HFT | FVTPL | - | - | - | - | - |
Available for sale | AFS | FVOCI | 220,501,912 | (30,300,149) | 2,791,559 | - | 192,993,322 |
Held to maturity | HTM | Amortised Cost | 2,756,377 | 30,300,149 | - | - | 33,056,526 |
Associate | Associate | Associate | 90,210 | - | - | - | 90,210 |
Advances | Cost | Amortised Cost | 101,587,580 | - | - | (4,155,917) | 97,431,663 |
Other assets | Cost | Amortised Cost | 19,639,128 | - | - | (28,647) | 19,610,481 |
Forward foreign exchange contracts | Fair value | FVTPL | 31,449 | - | - | - | 31,449 |
Total Financial Assets | 374,462,461 | - | 2,791,559 | (4,184,646) | 373,069,374 | ||
Bills payable | Cost | Amortised Cost | (3,759,078) | - | - | - | (3,759,078) |
Borrowings | Cost | Amortised Cost | (50,460,559) | - | - | - | (50,460,559) |
Deposits and other accounts | Cost | Amortised Cost | (289,291,561) | - | - | - | (289,291,561) |
Other liabilities | Cost | Amortised Cost | (16,948,235) | - | - | (821,817) | (17,770,052) |
Forward foreign exchange contracts | Fair value | FVTPL | (18,701) | - | - | - | (18,701) |
Total Financial Liabilities | (360,478,134) | - | - | (821,817) | (361,299,951) | ||
Net Financial Assets | 13,984,327 | - | 2,791,559 | (5,006,463) | 11,769,423 |
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Bank of Khyber published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 10:50:26 UTC.
