In the N a M E Of

IN THE NAME OF GOD CONTENTS Key Figures .....................................................................................5 Managing Director’s Statement........................................................6 Board of Directors’ Report To The Annual Ordinary General Assembly Meeting For The Financial Year Ended 19.03.2016............................8 ECONOMIC REVIEW, ISLAMIC BANKING PRINCIPLES & IRAN’S 1BANKING SECTOR .............................................................9 Economic Review 2015-16 An Overview........................................10 Islamic Banking Principles ..............................................................16 Iran’s Banking Sector.....................................................................18 2INTRODUCTION .............................................................19 Background .................................................................................20 Objectives ....................................................................................21 Corporate Social Responsibilities .................................................21 Prizes, Distinctions & Achievements ............................................22 Shareholder Composition ..............................................................23 Specialist Committees..................................................................24 Regulatory Environment ..............................................................24 Organisational Chart ....................................................................25 Human Resources .......................................................................26 Capital .........................................................................................27 Development Plans .....................................................................28 3 PERFORMANCE.............................................................29 OPERATIONAL PERFORMANCE ...............................................30 Branches......................................................................................30 Information Technology ................................................................31 Compliance & Anti-Money Laundering Department .....................33 Risk Management ........................................................................35 FINANCIAL PERFORMANCE ....................................................43 Our Investments ..........................................................................43 Share Prices & Trading Information ............................................47 Interest Rates Of Investment Deposit Accounts ...........................47 Paid Interest On Investment Deposits ...........................................48 Structural Distribution Of Deposits ...............................................48 Major Items Of Income Statement ...............................................49 Comparative Analysis Of Interests Received From Granted Facilities, Deposits & Investment Revenues ................................50 EPS Forecast ..............................................................................50 Main Items Of The Statement Of Financial Position .....................51 4INDEPENDENT AUDITOR’S REPORT ........................52 5FINANCIAL STATEMENTS ..........................................53 Annual Report 2015-2016 Granted Facilities million IRR 2014-15 69,311,354 KEY 2015-16 81,260,142 Total Assets million IRR FIGURES 2014-15 112,073,059 2015-16 123,307,245 Deposits million IRR 2014-15 94,392,057 2015-16 104,602,671 Total Shareholders’ Equity million IRR 2014-15 14,713,365 2015-16 15,596,227 Income from Facilities million IRR 2014-15 16,652,950 2015-16 19,001,328 Total Revenues million IRR 2014-15 20,806,488 2015-16 22,134,658 According to the Central Bank of Islamic Republic of Iran, the rate of exchange was $1/IRR30,240 at the end of the reported period. The Bank’s fiscal year ends on 19 March. 5 Managing Director’s Statement I am delighted to once again present Karafarin Bank’s report on its exceptional performance and operations for the previous financial period. The accomplishments outlined in this report are undeniably a joint outcome of genuine efforts made by our committed team of experts and the support we have received from our esteemed shareholders on our path to make yet another successful year in the Bank’s history. Hence, I would like to take this opportunity to express my deepest gratitude to all those who have played a part in the Bank’s current successful record. Thanks to the ongoing support of our Board of Directors and the efforts of our dedicated and expert colleagues, we have also taken effective steps within the framework of the governing banking regulations towards excellence and growth. During the previous financial period, Iran faced some of the hardest economic hardships in its history, which inevitably affected Karafarin Bank’s operations. Some of such challenges include: the ongoing recession, continuance of CBI’s policy on stabilising foreign currency rates, reducing inflation and interest rates, existence of unlicensed credit institutions, unfair competition among banks in attracting resources etc. However, I am pleased to announce that we have successfully overcome all such challenges. Thanks to adopting sound policies and to the support of our Board of Directors, the ongoing efforts of our dedicated and specialised personnel and the backing of our infrastructure, we have demonstrated an outstanding performance in line with Iran’s banking laws and regulations. During the reporting financial period, we drafted a strategic plan which focuses on becoming an agile and pioneering organisation in offering comprehensive financial solutions. Hence, our mission as a financial institution, is to make our best endeavour to improve the current business environment by offering comprehensive solutions to clients and to create sustainable wealth for our beneficiaries. We also feel the need to draft a new marketing strategy more than ever before. Following Iran’s landmark nuclear agreement with the P5+1, which was subsequently followed by the lifting of the sanctions, foreign companies have shown a keen interest to invest in this country’s various economic sectors. Hence, having taken advantage of the arising opportunities from post-sanctions era, we have stepped up efforts towards re-establishing relations with foreign banks and corporations and we are confident that we shall see some positive results in this regard, during the upcoming year. 6 Annual Report 2015-2016 We believe that due to the incredible speed of technological advancement especially in the previous decade, the future of banking is based upon electronic banking. Hence, we are determined to further improve our ebanking services and to offer a wider variety and such products and services, more than ever before. In this regard, our main plan is to upgrade our core banking system next year. Our performance indicators and numerous distinctions in monetary sector clear show that Karafarin Bank remains to be a pioneering bank in developing banking services. As a part of the value-creating activities that define our over-arching customer-oriented approach which lie at the heart of our progressive growth strategy, additional emphasis has been placed to provide secure electronic banking services to our valued customers and to implement a wide range of modern banking products and new service networks by creating new environments and branches. All these measures are aimed at asserting a stronger presence in society, enabling us to offer improved quality services. During the previous year, Karafarin Bank became Iran’s top bank in banking sector and ranked second among the top one hundred companies (IMI-100) listed on the Tehran Stock Exchange (TSE) in terms of transparency of financial information. These achievements have undoubtedly resulted from the collective efforts of our colleagues and the trust and ongoing support of our shareholders. We firmly believe that with the continued support of our shareholders and customers, we will accomplish further growth and excellence whilst realising the Bank’s greater objectives more than ever before that can lead to new business horizons and ensure customer and shareholder satisfaction. Ataollah Ayatollahi 7 Board Of Directors’ Report To The Annual Ordinary General Assembly Meeting For The Financial Year Ended 19.03.2016 Dear Shareholders, We hereby present to you the Board of Directors’ report about Karafarin Bank’s Annual Ordinary General Assembly Meeting. The provision of this report fulfils our compliance with obligations in respect of the requirements set forth in Articles 232 of the Commercial Code of 1968 (as amended) and Article 45 of the Securities & Exchange Act. This report which has been prepared on the basis of existing evidence and documents reflects the operations and general position of the Bank for the Iranian financial period ended 19.03.2016. In our opinion, information incorporated in the report on the Bank’s operations and its general position, has been prepared and presented on the basis of emphasizing the principles of fair presentation of the Board of Directors’ performance for the reporting period, consistence with the objective of safeguarding the interests of the Bank, compliance with the relevant legal and regulatory requirements as well as conformity with the Bank’s Articles of Association. The information included in the report is accurate, complete and corresponds to factual events of the past

Load more