2011 Annual Report Contents
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aspire 2011 Annual Report Contents 02 Vision Unconsolidated Financial Consolidated Financial 04 Mission Statements of Allied Bank Statements of Allied Bank 06 Core Values 10 Company Information Limited Limited and its Subsidiary 12 Board of Directors 73 Auditors’ Report to the Members 164 Directors’ Report on Consolidated Financial 14 Profiles of the Directors 74 Statement of Financial Position Statements 18 Board Committees 75 Profit and Loss Account 165 Auditors’ Report to the Members 20 Chairman’s Message 76 Statement of Comprehensive Income 166 Statement of Financial Position 22 Directors’ Report 77 Statement of Cash Flows 167 Profit and Loss Account 28 The Management 78 Statement of Changes in Equity 168 Statement of Comprehensive Income 32 Org-Structure 79 Notes to the Financial Statements 169 Statement of Cash Flows 34 Chief Executive Officer’s Review 147 Annexures I 170 Statement of Changes in Equity 47 Entity Ratings of the Bank 157 Annexures II 171 Notes to the Financial Statements 48 Performance Highlights 159 Annexures III 239 Annexure II 52 Horizontal Analysis 241 Pattern of Shareholding 54 Vertical Analysis 247 Form of Proxy 56 Statement of Value Addition 57 Concentration & Maturity Profile 58 Product & Services 60 Corporate Social Responsibility 64 Notice of 66th Annual General Meeting 66 Statement of Compliance with Code of Corporate Governance (CCG) 67 Statement of Ethics and Business Practices 69 Statement of Internal Controls 70 Auditors’ Review Report to the Members on Statement of Compliance with CCG Annual Report of Allied Bank Limited for the year 2011 Performance 2011 1 Vision To become a dynamic and efficient bank providing integrated solutions in order to be the first choice bank for the customers. 2 Annual Report of Allied Bank Limited for the year 2011 3 Mission • To provide value added services to our customers • To provide high tech innovative solutions to meet customers’ requirements • To create sustainable value through growth, efficiency and diversity for all stakeholders • To provide a challenging work environment and reward dedicated team members according to their abilities and performance • To play a proactive role in contributing towards the society 4 Annual Report of Allied Bank Limited for the year 2011 5 Core Values • Integrity • Excellence in Service 6 Annual Report of Allied Bank Limited for the year 2011 7 8 Annual Report of Allied Bank Limited for the year 2011 Core Values • High Performance • Innovation and Growth 9 Company Information Board of Directors Audit Committee Legal Adviser Mohammad Naeem Mukhtar Mubashir A. Akhtar Haidermota and Company, Chairman / Non Executive Director Chairman Barrister-at-Law & Corporate Counsellors Sheikh Mukhtar Ahmad Pervaiz Iqbal Butt Shares Registrar Non Executive Director Member Technology Trade (Pvt.) Ltd. Muhammad Waseem Mukhtar A. Akbar Sharifzada Non Executive Director Member Registered Office Abdul Aziz Khan Sheikh Jalees Ahmed 8-Kashmir / Egerton Road, Independent Director Member Lahore - 54000 Pakistan Mubashir A. Akhtar Company Secretary Independent Director UAN: (92 42) 111-110-110 Muhammad Raffat Pervaiz Iqbal Butt Head Office Independent Director Auditors 3-4 Tipu Block, Main Boulevard A. Akbar Sharifzada Ernst & Young Ford Rhodes New Garden Town (Government Nominee Director) Sidat Hyder Lahore - Pakistan Sheikh Jalees Ahmed Chartered Accountants (92 42) 35880043 Executive Director KPMG Taseer Hadi & Co. Website & Email Khalid A. Sherwani Chartered Accountants Chief Executive Officer www.abl.com [email protected] Toll Free Number 0800-22522 10 Annual Report of Allied Bank Limited for the year 2011 11 Board of Directors 12 Annual Report of Allied Bank Limited for the year 2011 (Left to Right) Mubashir A. Akhtar Sheikh Jalees Ahmed Khalid A. Sherwani Mohammad Naeem Mukhtar Sheikh Mukhtar Ahmad Muhammad Waseem Mukhtar Abdul Aziz Khan Pervaiz Iqbal Butt A. Akbar Sharifzada 13 Profiles of the Directors Mohammad Naeem Mukhtar Sheikh Mukhtar Ahmad Muhammad Waseem Mukhtar Chairman / Non Executive Director Non Executive Director Non Executive Director He is on the Board of Allied Bank since He started his business career He holds a Master’s degree in Total 2004. He has done his MBA from Cardiff immediately after migrating from Quality Management (TQM) from Business School U.K, Post Graduate India at the time of Independence of University of Glamorgan, Wales, UK and diploma in Textiles from UK and Chartered Pakistan in 1947 and contributed to the has diversified 14 years of experience of Textile Engineer (CText ATI) from The industrial and business growth of Pakistan Finance, IT and Industry. His proactive Textile Institute in Manchester U.K. He through his entrepreneurship skills strategic guidance played a vital role in has 26 years of experience of finance and and business acumen. He has over 50 technological up-gradation to enhance industry. Besides Chairman of Board of Directors of Allied Bank, he is also CEO of years of experience in establishing and service quality across Allied Bank. He Ibrahim Fibres Limited, Director of Ibrahim successfully managing various industrial joined Allied Bank’s Board in 2004 and Agencies (Pvt) Limited, Director Pakistan and financial companies. Under his is a “Certified Director” after completing Business Council and Member Board auspices, Ibrahim Group has emerged as Board Development Series Certificate of Governors of National Management a leading conglomerate of the country. Program from Pakistan Institute of Foundation, the parent body of Lahore He has completed Corporate Governance Corporate Governance. He also holds University of Management Sciences Leadership Skills Program from Pakistan Directorships in Ibrahim Fibres Limited, (LUMS). Institute of Corporate Governance and is a Ibrahim Agencies (Pvt) Limited, ABL Asset “Certified Director”. He joined the Board of Management Company Limited and Allied Bank in 2005 and is also Chairman/ Arabian Seacountry Club. CEO of Ibrahim Agencies (Pvt) Limited, Chairman of Ibrahim Fibres Limited and ABL Asset Management Company Limited. 14 Annual Report of Allied Bank Limited for the year 2011 Abdul Aziz Khan Mubashir A. Akhtar Pervaiz Iqbal Butt Independent Director Independent Director Independent Director He has enriched and diversified He is a law graduate and has about 45 He is an Electrical Engineer and has 42 experience of over 48 years in local and years of banking experience in local years of experience in marine engineering international banking. His international and international markets. His extensive and other heavy Industries. His extensive banking experience is in diverse financial international banking experience includes and diversified exposure of Industrial markets, including Switzerland. He has key assignments in Turkey, Oman and Management effectively complements been on the Board of Allied Bank since UK. He is a Financial Consultant of Asian the decision making process at the 2004. Development Bank (ADB) and remained Board level. He has completed Board actively involved in various assignments Development Series Certificate Program of ADB especially on capital markets from Pakistan Institute of Corporate development and reforms of NBFIs Governance and is a “Certified Director”. in Pakistan. He has completed Board He Joined the Board of Allied Bank in Development Series Certificate Program 2007 and is also Director/CEO of Polytek from Pakistan Institute of Corporate Associates (Pvt) Limited. Governance and is a “Certified Director” and has been on the Board of Allied Bank since 2006. 15 Profiles of the Directors A. Akbar Sharifzada Sheikh Jalees Ahmed Khalid A. Sherwani Government Nominee Director Executive Director Chief Executive Officer A Joint Secretary placed as Special He joined Allied Bank’s Board in 2004 A seasoned banker with strategic Assistant to the Finance Minister, Akbar and has more than 36 years of diverse leadership experience of over 40 years Sharifzada has 25 years of civil service experience in the fields of Financial of banking operations, marketing, career in Pakistan. He has been posted and Industrial management. He has finance and information technology, in different Ministries gaining wide completed Board Development Series Khalid Sherwani has been appointed ranging administrative and policy making Certificate Program from Pakistan Chief Executive of Allied Bank Limited experience, enhanced by multiple Institute of Corporate Governance and is for the second time in June 2010. His exposure to specific courses attended a “Certified Director”. Allied Bank benefits exceptional track record includes within the country and abroad. His from his professional expertise particularly restructuring and turning around UBL academic qualification is M.A. (English in the areas of strategic and financial during 1996-2000, restructuring and Literature) and M.A. (Economics). planning, systems and controls and HR recapitalization of Allied Bank Limited management. during 2000-04 and leading its He has been appointed as Government turnaround during 2004-07. nominee director on the Board of Allied Bank since January 2012. Khalid Sherwani holds M.Sc. degree and has also completed Board Development Series Certificate Program from Pakistan Institute of Corporate Governance and is a “Certified Director”. Besides CEO of Allied Bank Limited he is also on the Board of First Women Bank Limited; Habib Allied International Bank, U.K; ABL Asset Management Company Limited and 1 Link (Guarantee) Limited. 16 Annual Report of Allied Bank Limited for